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The
financial
Onnnrcitl ljrcinicie
SATURDAY,DECEMBER 26 1931.
VOL. 133.
finaucial Thronult
PUBLISHED WEEKLY
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The Financial Situation.
Perhaps the most important development of the
week, at least as far as domestic events are concerned, has been the disclosures that the National
Credit Corp., so prominently brought into view only
a little over two months ago,and which was to accomplish so much for the benefit of the banking and
financial world, has failed of its purpose or is proving entirely inadequate to accomplish the ends for
which it was established. This revelation came in
the testimony given before a subcommittee of the
Senate Committee on Banking and Currency. It
will be remembered that the basis for the National
Credit Corp. was laid at a conference at the White
House at Washington late on the night of Oct.6,and,
according to President Hoover's official announcement, "the purpose of this institution is to be the
rediscounting of banking assets not now eligible for
rediscount at the Federal Reserve banks in order to
assure our banks, being sound, that they may attain
liquidity in case of necessity." The New York Clearing House banks pledged themselves to contribute
$150,000,000, or 2% of their net demand and time deposits, and all the other banks in the country were
to do the same thing, thereby providing a fund of at
least, it was estimated, of $500,000,000. The Credit
Corp. also was to have authority to issue up to
$1,000,000,000 of debentures.
It has always been our belief that this Credit Corp.
was in the nature of a magnificent gesture, of some
value psychologically, but not likely to be of great
utility otherwise. Now come eminent banking men,
and testify to the same effect. No less of a banking authority than Melvin A. Traylor, President of
tile First National Bank of Chicago, went on record
to express the view referred to. Mr. Traylor's testimony was given in the hearing on the proposal recommended by President Hoover in his annual message
NO. 3470
that a $500,000,000 Reconstruction Finance Corp.
be established with the idea of extending aid generally and to assist the railroads and various other
undertakings badly in need of funds. Mr. Traylor
gave it as his opinion that the taking over, through
the National Credit Corp., by banks which are in
most liquid condition of slow-moving assets from less
fortunate banks meant only a transfer of undesirable
loans from bank to bank and eventually would mean
that banks would find themselves with $500,000,000
invested in such paper. Relief work of that description, Mr. Traylor contended, is the function of an
organization outside of the banks themselves, under
present conditions, and he pronounced the proposed
Reconstruction Corp. as the proper agency.
Newspaper dispatches say that Mr. Traylor recommended what were termed two vital amendments to
the present plan for setting up the Reconstruction
Finance Corp. His first proposed amendment, it is
stated, startled the Committee. It was that the
Corporation make loans to banks which have been
closed, a point on which he argued apparently to
the point of convincing committee members, the
Washington correspondent of the New York "Times"
said in a dispatch under date of Dec.22. His second
proposed amendment, we are told, was that the
Corporation be financed through a Government loan,
instead of by proposed debentures guaranteed by the
Treasury, as the Government's responsibility for
repayment of the debentures actually would be the
same and Government bonds or Treasury certificates
could be floated at a lower rate of interest than
debentures. Mr. Traylor's testimony, dealing solely
with banks, was approved, Washington advices say,
in later testimony by Wilson W. Mills, Chairman of
the Board of the People's Wayne County Bank of
Detroit, with the exception that Mr. Mills favored
the issuance of debentures on the ground that the
public "may get fed up on too many straight Government loans." Mr. Traylor testified that money
might well be loaned to closed banks on their good
but slow securities, thereby releasing an estimated
$1,750,000,000 tied up in those institutions and recreating confidence which would bring out into circulation another $750,000,000 which he estimated people were hoarding because of their lack of confidence in banks.
With reference to the defects of the National
Credit Corp., of which he is Committee Chairman
in his own Federal Reserve District, and the need
of replacing it by some institution like the proposed
Reconstruction Finance Corp., Mr. Traylor said:
"The National Credit Corp. was formed voluntarily by the banks of the country to meet an emergency that they felt clearly existed at the time: That
emergency arose because of the believed inability for
solvent banks to borrow against their collateral.
4196
FINANCIAL CHRONICLE
"As a matter of fact, banks had two avenues open,
either their Federal Reserve membership or their
correspondent relations, but there was a general
public feeling that a number of banks had assets that
were good, but too slow to meet requirements. This
Corporation was formed, therefore, for the purpose
of making loans against slow assets.
"What it meant was that the pooled assets of the
banks would be loaned to borrowing banks against
assets that were slow. The result is that to the
extent that this pool loans against frozen assets they
are taking into their own portfolios assets that, at
the moment they come in, are subject to criticism as
slow. To pursue this policy to the end would mean
tieing up $500,000,000 in slow assets. Therefore, I
believe this bill should be enacted at the earliest possible moment to relieve the banks from further tieing
up their assets."
The resumption of public confidence in banks
would be sufficient reason for the adoption of the
bill embracing the new organization, Mr. Traylor
said, asserting that "if the confidence in our central
banking institutions fails, then everything else fails."
Mr. Traylor was not alone in expressing the
opinion that the National Credit Corp. was not functioning in the way expected. Last Saturday, George
L. Harrison, Governor of the New York Federal Reserve Bank,in appearing before the Senate Subcommittee on Banking and Currency, and urging prompt
action on the bill providing for the creation of the
Reconstruction Finance Corp., explained that the
National Credit Corp., representing a pool of banking
interests, could not be employed in the general situation and had not done so much as desired in relieving
frozen credit in the banks. He said that the banks
associated in the pool have not been called upon to
pay their debentures in full because thus far aid had
been furnished to weak banks through loans. Newspaper accounts say that Senator Bulkley of Ohio
insisted that the National Credit Corp. had not functioned and asked Ogden L. Mills, Under Secretary of
the Treasury, the reason, and Mr. Mills replied that
the National Credit Corp. had had a splendid psychological effect in re-establishing confidence of depositors and that hence the Credit Corp. had served a
useful purpose. All this is of importance in showing
that hasty action in new legislation, through an excess of zeal and overenthusiasm, often defeats itself.
Immediate action for the establishment of the
$500,000,000 Reconstruction Finance Corp. was also
urged before the Senate Subcommittee on Banking
and Currency as an aid to the railroads. Among
those appearing on behalf of the railroads on Tuesday were Ezra Brainerd, Jr., Ohairman of the InterState Commerce Commission; Frederick H. Ecker,
President of the Metropolitan Life Insurance Co.,
and Morgan B.Brainard,President of the Aetna Life
Insurance Co. Mr. Brainerd testified that the
railroads will need between $85,000,000 and $156,000,000 above cash on hand to meet obligations
maturing before 'May 1 1932. After citing obligations against railroads on Oct 31 totaling $224,145,827, Mr. Brainerd testified that in the first quarter of 1932 railroads would have to pay $2,677,550 on
bonds, $35,984,395 on loans and bills payable, and
$35,560,820 on equipment trust obligations. He said
this information was not available from the files of
the Commission, but was compiled by the Bureau of
Railway Economics.
"For Class I operating railways (excluding lessor
companies)," Chairman Brainerd reported, "the
FOL. 133.
total amount of bond maturities for the year 1932,
including the amount for the first quarter, is $70,299,827. The total of equipment trust obligations
for 1932, including the amount given for the first
quarter, is $110,782,506."
Chairman Brainerd also testified that gross operating revenues of railroads had dropped from
$6,189,917,189 in 1928 to an estimated $4,225,000,000,
and net operating income, after deduction of taxes
but before fixed charges, had shrunk in the same
periods from $1,194,487,806 to $535,800,000.
The railroads are certainly in need of assistance,
and this, moreover, must come very soon. The best
means of rendering such assistance is a matter of
judgment which must be left to the discretion of the
lawmakers. The increase in rates granted by the
Inter-State Commerce Commission is not going to
count for much and none of the higher rates have yet
gone into effect. A mental calculation suffices to
show this. The increase at the outside is not expected to yield in excess of $125,000,000, and is more
likely Ito be $100,000,000, or even less than that. Even
at the latter figure, however, this averages only
about $10,000,000 a month. How far is this meager
sum likely to go, and for the first installment of
which it will be necessary to wait until the middle
of March. Not only that, but under the pooling
arrangement advances will first have to be made to
the so-called weak roads. What, then, will be left
for the strong roads which find themselves carrying
large temporary loans, a renewal of which, it is admitted, it will be possible to arrange only with the
utmost difficulty?
It must be remembered, too, that, at the best,
ability to borrow, whatever the source, is nothing
more than a palliative. In order to restore the credit
of the roads it will be necessary that they shall be
put once again firmly on their feet where they can
earn their full fixed charges with a reasonable margin above that figure. Costs of operations will have
to be reduced, and to attain that end it is absolutely
necessary that wage schedules shall be lowered.
However harsh this may seem, there is no alternative. And progress in that direction is so slow that
security owners and the public are getting altogether
out of patience with the tardiness displayed. Week
after week is allowed to pass without any tangible
results being in evidence. The wage controversy
never gets beyond the conference stage. There are
conferences and conferences, and still other conferences, and meanwhile the railroads are piling up
heavy losses.
The time has arrived for votes of censure. Parleying and dilly-dally must now cease. Moreover,
schemes for limiting the reduction to a single year
must now be abandoned. A temporary arrangement
might have possessed some advantage a year ago, but
it is now too late. There must be a permanent reduction because necessity requires it. The salvation of
the roads depends upon it. Confidence in the ability
of the carriers to earn their charges can be restored
in no other way. If there were now a reduction
limited to a single year, the doubt as to whether
there would be consent to a further prolongation,
while the certainty that the prolongation could only
be attained after further long series of conferences,
would be fatal from the start. In such circumstanes
there could be no confidence in the ability of the roads
to function on an enduring basis of prosperity. A
process of adjustment to a lower basis of values and
DEC. 26 1931.]
FINANCIAL CHRONICLE
to a lower scale of wages is now going on all through
the industrial world, and from this process labor
cannot hope to escape. Then, too, there is nothing
inequitable or unjust in the request, since the cost of
living has unquestionably been greatly reduced.
The reduction in wages must, moreover, be radical.
There is no sense any longer in 'talking of a reduction of only 10%, because it is clearly inadequate to
the needs of the situation. The reduction need not
be uniform. Undoubtedly some roads can get along
with smaller cuts than others, and where that is the
case the workers ought to get the benefit. But action
of some kind on the wage question,immediate action,
is absolutely necessary. The railroad exceutives,
,each road for itself, should at once give notice of the
reductions and then let the consequences (for which
the wage earners alone will be responsible) take care
of themselves. No other course, as already said, is
now open, if a general breakdown of the whole railroad system is to be averted.
The burden of railroad taxation should also be
lightened. It is now close to the confiscation point.
Figures have been published this week showing that
the railroads are now obliged to pay out one-third
of their net income in taxes. Dr. Julius Parmelee of
the Bureau of Railway Economics estimated on Wednesday that taxes would absorb one-third of the 1931
net revenue of American railroads.
Speaking of taxes, these are a crushing weight on
general business, too, now that the country is so
sorely afflicted with business depression. And
nowhere is there greater need for a lessening of the
tax burden than right here in the City of New York.
In floating short-term obligations to amount of $60,000,000, the present week, this city had to pay an
interest rate of 51/
2%. And this at a time when the
money market is glutted with short-term funds.
This is the highest rate the city has had to pay on
short-term loans for years. As recently as Sept. 24
the city was able to negotiate $51,000,000 three
months' loans at 1%7
0. The higher cost is due not
alone to the fact that the money market has hardened,'but that the city's credit must be expected to
depreciate as the result of the vast amount of new
obligations which the city is constantly turning out
and the extravagant cost of the city administration.
The city budget for the coming year was approved
the present month and showed a further increase of
$10,526,114 on top of the long series of previous
increases year after year hack to the time of the
mayoralty of John Purroy Mitchell. The budget for
the new year is now up to the huge figure of $631,366,297, and this does not allow for the large amounts
of school money which the city receives from the
State at large. Adding this on, the city's expenditures for the year are raised close to $700,000,000.
With a population of, roughly, 7,000,000, this
means a tax of $100 per year per head of population,
and an average tax for an ordinary family of four
persons of $400 per year. During the 10 years from
1922 to 1932 the city's budget has risen from $350,516,524 to $631,366,297. No inconsiderable portion
of the increase for the 10 years is to be ascribed to
the salary advances that have been made. Virtually
everyone in the employ of the city government has
had his salary raised in the interval. In the case of
the 'higher officials the salary increases have been
prodigious. Senator Borah is advocating a reduction of 10% in the salaries of all Federal employees
4197
receiving above $2,000 or $2,500. Whether this be
wise or not,, some investigation certainly ought to
be made of the additions to the city budget caused
by the salary increases of the last 10 years. The
Seabury Committee is vested with broad powers of
investigation, and it would be rendering an inestimable service to the people of this city if it collected information to show the extent to which the
city budget has been raised by a mere increase in
rate of pay of those of every class and description
in the employ of the city administration. The full
amount of the increase should then be lopped off and
the tax burden correspondingly lightened.
There are two chief features in the returns of the
Federal Reserve banks the present week. One of
these is the disappearance from the list of security
holdings of the item termed special Treasury certificates for amount of $197,500,000. This item represents special borrowing done last week by the United
States Treasury on one-day certificates of indebtedness pending the collection of the income tax collections on the 15th of the month. Therefore, the elimination of that item was a foregone conclusion in any
event, and, accordingly, its disappearance is devoid
of any significance. The other striking change is
the large increase in the discount holdings representing direct borrowing by the member banks at the
Reserve institutions. These discount holdings of
the 12 Reserve banks have risen during the week from
$697,908,000 to $911,194,000, thus showing an addition in amount of.$213,286,000—obviously a very
large expansion for the week. Analysis of the figures
reveals that almost the whole of the increase was in
the discounts secured by United States Government
Obligations as collateral. Here the amount has risen
during the week from $358,117,000 to $561,374,000,
and the increase appears to have grown directly out
of the sale last week of the large mass of new United
States obligations forming part of the Treasury's
December program of financing.
The Treasury offered for subscriptions altogether
new issues of securities to a total of $1,300,000,000,
"or thereabouts," and made allotments aggregating
$1,323,483,700. Some of the issues were only narrowly oversubscribed, and many banks put in subscriptions not because they really wanted the new
securities, but because they wanted to prevent the
offering from being only a partial success. What
happened, therefore, appears to have been that banks
making subscriptions of that kind obtained the funds
for making payment by taking the obligations
around to the Federal Reserve banks and obtaining
loans on the same.
The other changes of the week are wholly along
previous lines. Thus holdings of acceptances bought
in the open market were further reduced during the
week from $307,077,000 to $257,351,000. Concurrently there has also been another increase in the
total of the acceptances held by the Federal Reserve
Bank for account of their foreign correspondents,
indicating that these foreign banks are still continuing to add to their investments in domestic bills in
this market. This is a point worth noting,inasmuch
as gold withdrawals for foreign account have again
been on quite a large scale, the withdrawals for export for the week ending Wednesday night having
reached a total of $7,375,000, besides which $11,378,000 was put under earmark during the week for
foreign account. Moreover, there were
withdrawals
4198
FINANCIAL CHRONICLE
of $3,641,700 more of the metal on Thursday, though
this was in part offset by the release of $2,393,400
from earmark.
The result of the changes indicated, we mean the
Increase in the discount holdings and the decrease
in the bill holdings, besides some increase in the holdings of United States Government securities (apart
from the elimination of the special treasury certificates referred to) is that total bill and security holdings, which constitute a measure of the volume of
Reserve credit outstanding, are reported slightly
larger the present week at $1,957,221,000 as against
$1,941,351,000 a week ago. Gold holdings are slightly
lower at $2,980,861,000 the present week against
$2,982,044,400 last week, and as there was, at the
same time, a further large expansion in the volume
of Federal Reserve notes in circulation, which this
week are reported at $2,661,206,000 against $2,528,332,000 a week ago, the ratio of total reserves to deposit and Federal Reserve note liabilities combined
is somewhat lower at 64.4% as against 65.0% last
week.
Acreage planted to winter wheat for the crop to
be harvested next year is considerably reduced. This
was expected owing to conditions that are well
understood. The announcement of the Department
of Agriculture at Washington makes this area for the
past fall 38,682,000 acres. These figures compare
with 43,149,000 acres announced a year ago as
planted for the harvest of winter wheat last summer.
The reduction this year amounts to 4,467,000 acres,
or 10.4%,and the area is the smallest in many years.
The condition of the new winter wheat crop in the
United States, on Dec. 1 last, was 79.4% of normal.
This is below the Dec. 1 condition of any winter
wheat crop for the past eight years. The condition
figures have been somewhat above 80% in each of
the preceding eight years. The crop harvested this
year was 86.3% of normal, on Dec. 1 1930, and this
was the highest of any year back to 1923, when the
Dec. 1 condition for the winter crop planted in the
fall of that year was 88.0 of normal. The crop
planted in the fall of 1922 showed a condition of
79.5% of normal, on Dec. 1 1922, and for the year
before it was 76.0%.
All of these figures would suggest that a smaller
production of winter wheat might be expected in the
summer of 1932. For the crop harvested last summer there were later revisions of the area planted,
the final estimate being 40,149,000 acres. Some reduction in the area planted the past autumn on
account of winter killing will occur, but the extent
of this cannot be foreseen. In 1927, the year of the
large winter wheat acreage, the yield in the following summer was considerably below this year or last
year. At anything like such an average production
per acre as for the current year, the yield of winter
wheat next summer would be well up with that of
1931. There was a reduction of 7% in acreage
planted to rye the past fall as reported in the Department's report. Acres planted this year were estimated at 3,712,000 as compared with the 3,993,000
acres sown last year.
The stock market this week suffered a setback
again and thus it appears that the sharp advance
of last week proved short-lived. In fact, the upward
swing seems to have been very much in the nature
of a drive against the shorts, the short interest hay-
For,. 183.
ing become unwieldy. The rise last week made further progress at the half-day session on Saturday,
though there was somewhat of a downward reaction
before the close of the session on that day. On Monday, the market became unsettled, mainly, it seemed
as the result of sales to realize profits, but the declines were not large and trading was tame. On
Tuesday the market once more regained tone, in the
absence of any extensive liquidation, and prices
evinced a rallying tendency, with the active stocks
showing a recovery in many cases of the previous
day's losses. On Wednesday, however, decided weakness developed, and prices quite generally moved
lower once more. On Thursday the market became
somewhat unsettled, but price changes were narrow.
and unimportant, as a rule.
There were quite a number of unfavorable developments during the week. Stocks were also adversely affected by the fact that the bond market
showed a renewed manifestation of weakness. In
the general weakness, Government bond issues did
not escape, and all the different issues of United
States obligations dropped below par with the single
exception of the Treasury 414s. The fact that New
York City, on temporary borrowing for $60,000,000,
had to pay 5/
2% interest attracted a great deal of
1
attention. The effect, too, was to cause a softening
in the municipal bond market, and weakness in Government bonds was a sequel to intimations from
Washington that President Hoover's relief program
involved issuance of considerable amounts of Government bonds or of debentures or some other form
of obligation for which the credit of the United States
would have to be pledged. Trade statistics were not
of an encouraging character, one illustration being
that owing to the Christmas shutdown steel mills
were engaged to only 21% of capacity. It did not
escape attention that in the holiday shutdown of
1930 production even then got no lower than 24% of
capacity. Then, also, there was a further weakening
in the prices of many steel products, while automobile concerns delayed in sending in their orders for
the first quarter of 1932, the appearance of which
the trade had been looking for for quite some time.
Then, also, the returns of railroad earnings for the
month of November now began to come in, and
though comparison was with very poor returns in
November last year, further heavy losses appeared
in the figures for 1931. Unfortunately, too, there
was very little evidence of progress in the negotiations between the roads and their union employees
for the lowering of wage schedules, which is deemed
an absolute prerequisite to improvement in the character of railroad results. The oil shares displayed
distinct weakness on account of the appearance of
statistics showing increases in stocks of oil on hand.
The tobacco stocks also appeared to be under severe
selling pressure on account of nervousness over the
agitation for increased Federal and State taxes on
cigarettes. American Tobacco B suffered quite
severely as a consequence, and recessions likewise
occurred in other stocks in the same group. Selling
to establish losses in income tax returns also again
featured.
Further dividend reductions and omissions, some
by companies of considerable importance, constituted a further depressing agency. Thus the directors of the National Cash Register Co. omitted dividends on class A $3 cumul. stock usually declared at
this time. The St. Joseph Lead Co. reduced the
DEC. 26 1931.]
FINANCIAL CHRONICLE
4199
quar. dividend on common from 25c. a share to 15c. Publix Corp. at 6% against 7%; Kreuger & Toll at
The Briggs Mfg. Co. reduced the dividend on com- 4% against 4%; Westinghouse Elec. & Mfg. at 25
mon from 37/
2c. a share to 25c. a share. Associated against 29%; Drug, Inc., at 51 against 52%; Colum1
4; Amer. Tobacco at
/
Gas & Elec. reduced dividends on the class A stock. bian Carbon at 33% against 363
class B at 45
'Myers
&
Liggett
69%;
against
63%
another
or
kind
Among the dividend omissions of one
B at 33%
class
Tobacco
Reynolds
46%;
against
Co.
Register
Cash
National
the
in addition to that of
and To13%,
against
12%
at
Lorillard
35;
against
the
on
Corp.
Service
Water
Federal
the
were those of
6%.
against
various classes of preferred stock; that of the Amer- bacco Products class A at 6%
The steel shares have continued their downward
ican States Public Service Co. on the class A stock;
that of the Burco, Inc., on the 6% cumul. pref. stock, course on the further slump in the steel trade.
4
/
373
and that of the Interstate Bakeries Corp. on the $6.50 United States Steel closed on Thursday at
Steel
Bethlehem
week;
last
of
Friday
on
4
/
413
against
cumul.cony. pref. stock. On the Stock Exchange list
187 stocks dropped to new low levels for the year at 18% against 21%; Vanadium at 12% against 14;
4 against 22, and Republic Iron
/
during the present week. Call loan rates on the Crucible Steel at 231
4%. In the auto group Auagainst
4%
at
Steel
&
week.
during
the
have
3%
ruled
at
Exchange
Stock
Trading has been only moderately large and on a burn Auto closed on Thursday at 130 against 140 on
much lower scale of activity than last week. At Friday of last week; General Motors at 22% against
the half-day session on Saturday last the sales on 23%; Chrysler at 13% against 13%; Nash Motors at
the New York Stock Exchange were 1,626,286 shares; 15% against 15%; Packard Motors at 4 against 4;
on Monday they were 1,924,996 shares; on Tuesday, Hudson Motor Oar at 10% bid against 11%, and
1,397,038 shares; on Wednesday, 1,560,487 shares; Hupp Motors at 4% against 4%. In the rubber
on Thursday, 1,106,103 shares; Friday was Christ- group Goodyear Tire & Rubber closed on Thursday
4 on Friday of last week; B. F.
1
mas and a holiday. On the New York Curb Exchange at 14% against 16/
4 against 4; United States Rubber
/
the sales last Saturday were 322,843 shares; on Mon- Goodrich at 33
day, 349,867 shares; on Tuesday, 284,483 shares; on at3% against 4,and the preferred at8% against 7%.
The railroad shares have suffered a new slump
Wednesday,314,212 shares,and on Thursday,309,828
owing to the poor returns of earnings and the lack
shares.
As compared with Friday of last week, prices show of progress in getting a reduction in wages. Raillosses, as a rule, but in most instances only of mod- road bonds, too, after their recovery of last week
erate size. General Electric closed on Thursday at have again turned downward. Pennsylvania RR.
24% against 25on Friday of last week; Warner Bros. closed on Thursday at 18% against 20 on Friday of
Pictures at 2% against 3; United Corp. at 8% last week; Atchison Topeka & Santa Fe at 83%
against 8%; North American at 32% against 34%; against 88; Atlantic Coast Line at 31 against 31;
Pacific Gas & Elec. at 33% against 33%; Standard Chicago Rock Island & Pacific at 9% against 11%;
Gas & Elec. at 28 against 28%; Consolidated Gas of New York Central at 28% against 31%;Baltimore &
N. Y.at 59% against 64; Columbia Gas & Elec. at 13 Ohio at 16% against 18%; New Haven at 20%
8; Union Pacific at 73% against 80;
/
against 14; Brooklyn Union Gas at 75% against 79; against 238
Elec. Power & Light at 11 against 12; Public Service Southern Pacific at 28% against 32%; Missouriof N. J. at 53 against 55; International Harvester Kansas-Texas at 48% against 5%; Missouri Pacific
at 24 against 25%; J. I. Case Threshing Machine at at 7% against 9; Southern Railway at 7% against
40 against 44%; Sears, Roebuck & Co. at 32% 8%;Chesapeake & Ohio at26% against 28; Northern
against 34; Montgomery Ward & Co. at 7% against Pacific at 16 against 18, and Great Northern at 18%
8; Woolworth at 39% against 40; Safeway Stores against 19.
7/
The oil shares have continued depressed on acat 41% against 43%; Western Union Telegraph at
4; American Tel. & Tel. at 115% count of accumulating stocks of oil. Standard Oil
1
42 against 46/
4; Int. Tel. & Tel. at 8% against 9; of N. J. closed on Thursday at 26% against 29% on
1
against 121/
American Can at 61% against 64%; United States Friday of last week; Standard Oil of Calif. at 24%
8; Commercial against 26%; Atlantic Refining at 9% against 10%;
/
Industrial Alcohol at 26 against 277
8%;
against
8
/
77
at
Solvents
Shattuck & Co. at 10% Freeport-Texas at 16% against 16; Sinclair Oil at
4; Texas Corp. at 11 against 12; Phil/
against 10%, and Corn Products at 39% against 4% against 43
at 4% against 4%, and Pure 011 at
Petroleum
lips
41%.
4 3% against 4.
/
Allied Chemical & Dye closed on Thursday at 663
The copper stocks have again also declined. Anaagainst 71 on Friday of last week; E. I. du Pont de
Nemours at 54 against 55%; National Cash Register conda Copper closed on Thursday at 10% against
/8; International Nickel at 7% 11% on Friday of last week; Kennecott Copper at
at 7% against 97
s against 12;Calumet & Hecla at3% against 3%;
/
against 8%; Timken Roller Bearing at 19 against 113
4;
/
123
against
4
/
123
19; Mack Trucks at
Yellow Phelps Dodge at 7 against 9; American Smelting &
% against 21%, and Cerro de Pasco
3%;
against
Johns
&
Truck Coach at 3%
-Manville Refining at 183
at 17% ex-div. against 18%; Gillette Safety Razor Copper at 13% against 14%.
8;National Dairy Products at 23
at 11% against 111/
Quiet and narrow pre-holiday markets were reagainst 22%; Associated Dry Goods at 6% against
7%;Texas Gulf Sulphur at 22% against22%; Amer- ported this week on the securities exchanges at Lonican & Foreign Power at 7% against 7%; General don and Paris. Price movements were irregular, but
American Tank Car at 30 against 31; United Gas chiefly in the direction of lower values, as most deImprovement at 181/8 against 18%; National Biscuit velopments of the week were again unfavorable. The
at 39% against 40%;Coca Cola at 105% against 112; extent to which European trade has been rendered
4 against 35; Eastman Kodak prostrate during the depression was illustrated by
/
Continental Can at 333
at 81 against 85%; Gold Dust Corp. at 17% against the week-end reports that the large German engin/8; eering firm of A. Borsig, Ltd., located at Berlin, had
78 against 7
161%;Radio-Keith-Orpheum class A at /
Standard Brands at 12% against 11%; Paramount suspended payments after almost 100 years of ac-
4200
FINANCIAL CHRONICLE
tivity. Amsterdam reports indicated that a critical
sluation exists in the important flower bulb industry
of Holland, while much concern was expressed in
France regarding the great over-supply of wine. The
announcements of a partial Hungarian moratorium
and of sharp increases in Spanish tariffs were, of
course, hardly of a nature to improve sentiment. A
partial offset to these incidents was afforded, however, by the week-end report of a £5,000,000 expansion
project of the Selfridge Stores in London, and the
agreement reached in Brussels for curtailed production of copper by the important producers of the
world. The official British report on unemployment
this week reflects a decline of 54,722, to a total of
2,572,602.
Dealings on the London Stock Exchange were
quiet at the opening, Monday, with movements of
share prices uncertain. British funds were off at
first, but regained most of their losses in later transactions. British industrial stocks were substantially
unchanged, but some advances appeared among rubber issues. The Anglo-American group moved forward at first, but reacted later. Business Tuesday
was again on a small scale, owing to the near approach of the holidays. British Government bonds
were somewhat easier and a soft tone also appeared
in the industrial list of stocks. International issues
were marked down to conform with overnight reports
from New York. The tone Wednesday was slightly
better, chiefly because of a modest rally in British
funds, occasioned by the Congressional acceptance
of the Hoover moratorium proposal. Industrial
stocks were dull, but advances outnumbered declines.
The international group advanced slightly. Business was on a small scale Thursday, but prices
showed slight improvement.
Trading on the Paris Bourse also was of small proportions in the initial session of the week. The market was thin and a few selling orders sufficed to
lower quotations. The atmosphere was made heavy,
moreover, by the Hungarian decision to declare a
partial suspension of debt payments. Bank stocks
and the oil and utility groups showed the greatest
losses, dispatches said. In a further dull market
Tuesday, prices again glided downward, but the recessions were modest in almost all cases. Bank stocks
showed the only important losses. Although business
Wednesday was on an even smaller scale than in
previous sesions,some improvement in the trend was
noted. Bank stocks regained most of their earlier
losses of the week, and other groups also hardened.
The tone Thursday was firm, notwithstanding
limited trading.
Re-examination of the reparations question by the
Advisory Committee of the B. I. S. was completed
early this week, and a report rendered by the 11 experts which clearly opens the way for drastic action
by the conference of governments which is expected
to follow in January. The recommendations of the
committee are contained in an 8,000 word report, of
Which an official summary was made public Thursday. Unanimous agreement by the experts is reflected in this document to the effect that the economic stability of the world can be reestablished
only by an adjustment, through common accord and
without delay, of all reparations and other war debts.
The state of German economy will not permit the
Reich to resume payment of conditional annuities
when the Hoover year of suspension of intergovern-
[VOL. 133.
mental debts ends next July, it is held. Although
the terms of reference of the committee did not include consideration of unconditional annuities, it is
suggested by the inclusive nature of the recommendations that these also be suspended, and observers in
Basle draw the conclusion that the January conference of governments is likely to arrange a two-year
prolongation of the moratorium period.
The conclusion drawn from its survey by the committee, as stated in the final chapter of the report,
is that Germany would be justified in declaring, as
she is entitled to do under the Young plan, that in
spite of the steps she has taken to maintain the stability of her currency, she will not be able in the year
beginning next July to transfer the conditional portion of her reparations annuity.The committee states
further, however, that it would not consider that it
had fully accomplished its task if it had not drawn
the attention of the governments to the unprecedented gravity of the crisis, the magnitude of which
undoubtedly exceeds the "relatively short depression" envisaged in the Young plan, to meet which the
"measures of safeguard" contained therein were designed.
The Young plan arrangement of a rising series of
annuities contemplated, it is pointed out, a steady
expansion of world trade, not merely in volume but
in value,in which the annuities payable by Germany
would become a factor of diminishing importance.
In fact, the opposite has been the case,the committee
states. "Since the Young plan came into effect, not
only has the trade of the world shrunk in value, but
the very exceptional fall in gold prices that has occurred in the last two years has itself added greatly
to the real burden, not only of German annuities,
but of all payments fixed in gold," the report continues. "In the circumstances the German problem—
which is largely responsible for the growing financial paralysis of the world—calls for concentrated
action which the governments alone can take. But
that problem has assumed world-wide range. There
is no previous parallel in time of peace to the dislocation that is taking place, and it may well involve
a profound change in the economic relations of the
nations to one another. Action is most urgently
needed in a much wider field than that of Germany
alone. The economic interdependence of the various
countries of the world needs no further proof. Recent years have most strikingly illustrated it. Since
July last,for example, it has been evident that if the
crisis by which Germany has been overwhelmed were
not remedied it would spread to the rest of Europe,
destroy the credit system so painstakingly built up
and create profound repercussions in other parts of
the world."
As a result of its comprehensive examination of
the situation, the committee makes certain specific
recommendations, and the governments are urged
to note them with care. These considerations are:
(1) that transfers from one country to another on a
scale so large as to upset the balance of payments
can only accentuate the present chaos; (2) release
of a debtor country from a burden of payments
which it is unable to bear may merely have the effect
of transferring that burden to the creditor country
which, in its character as a debtor, it in turn may
be unable to bear; (3) adjustment of all reparations
and other war debts to the troubled situation of the
world—and this adjustment should take place without delay if new disasters are to be avoided—is the
Dsc. 26 1931.]
FINANCIAL CHRONICLE
4201
only lasting step capable of re-establishing con- the one-year suspension of intergovernmental debt
fidence. This final consideration is called "the very payments proposed last June by President Hoover,
condition of economic stability." The committee and the measure was signed by the President, Wedholds finally that although the German Government nesday. The issue was never in doubt, notwithstandis energetically defending the stability of its cur- ing the protracted and vehement debate that marked
rency, steps are necessary to assure that these meas- its consideration in the House of Representatives
ures shall have permanent effect. Destruction of and the Senate. It was disclosed last week by
the work which the European governments have un- Under Secretary of the Treasury Ogden L. Mills that
dertaken in recent years in order to re-establish the 276 members of the House and 68 members of the
stability of currencies would mean an extremely dis- Senate had pledged their support. The final votes
quieting setback, heavy with consequences,it is main- were even more favorable to the measure than these
tained. The report ends with an appeal to the gov- figures indicated. The resolution was approved by a
ernments to permit no delay in dealing with this vote of 317 to 100 in the House, Dec. 18, while the
Senate vote four days later resulted in acceptance
great crisis which weighs so heavily on all alike.
the
report is devoted to the by 69 to 12. As a result of the proposal, the United
The greater part of
the
of
to an analysis of the States Government is foregoing the collection of
committee
and
findings
present situation in Germany. That country was $252,000,000 from foreign governmental debtors in
particularly susceptible to the credit crisis because the year ending June 30 1932. The sum is to be reof the large volume of short-term credits outstand- paid over a 10-year period starting July 1 1933, with
ing, it is indicated. The external short-term debt, interest at 4%. The resolution as adopted includes
according to the census taken by the German Govern- the amendment which "expressly declares it to be
ment, was 12,000,000,000 marks at the end of July. against the policy of Congress that any of the indebtPrior to that date it was estimated that 2,900,000,000 edness of foreign countries to the United States
marks had been withdrawn, the report continues, should be in any manner cancelled or reduced."
An announcement by President Hoover, Wedneswhile withdrawals since that time under the standstill agreement are computed at 1,200,000,000 marks. day, that he had signed the measure was accomThe surplus of merchandise exports has been heavy, panied by a statement in which he expressed gratiit is admitted, but this is held due partly to special fication regarding the strong support given the procauses and it is considered doubtful whether the posal by both parties. Mr. Hoover remarked further
movement can continue at its recent level. The that the suggestion for the year's postponement of
series of measures taken by the Reichsbank to pro- all intergovernmental debts "averted a catastrophe,
tect the mark is described, and consideration is also the effects of which would have reached to the United
given the emergency decrees of the Reich Govern- States.and would have caused the American people
ment for the balancing of the budget through in- a loss many times the amount involved." After
creased taxation and reduced expenditures. The pointing out that the debts have not been cancelled
burden of taxation in Germany is now believed to or reduced, the President said: "In saving the colbe so high that there is no margin for further in- lapse of Germany by the year's postponement the
crease. The situation in the Reich is carefully re- American people have done something greater than
lated, in a subsequent chapter, to the world crisis the dollars and cents gained from the maintenance
and the interactions thus occasioned. A comforting of our agricultural markets, the prevention of panic
word is uttered in this regard, the committee observ- and unlimited losses. They have contributed to
ing that every previous crisis has been followed by a maintain courage and hope in the German nation
and to give opportunity for the other European
period of stability and prosperity.
Of exceptional interest, also, in connection with nations to work out their problems."
Keen interest was taken throughout Europe in
the reparations and debts problems, are the indications from London and Paris of extensive conversa- the Congressional debate on the resolution and the
tions between the British and French Governments attachment of the rider or amendment expressing
on these matters. Sir Frederick Leith-Ross, who antagonism to any cancellation or reduction of debts.
holds a prominent post in the British Treasury, went There was a tendency in Germany, Berlin reports
to Paris Dec. 17 for a discussion which is considered said, to regard the debate as due largely to the
preliminary to the coming meeting of governments French attitude on reparations. It was also sugon reparations and debts. He returned to London gested that lack of the business recovery which it
Wednesday, and the impression was gained, a dis- was hoped would follow the debt suspension had
patch to the New York "Times" said, that a Franco- caused disappointment. In the French capital some
British agreement on reparations is in sight. "The astonishment was occasioned by the amendment
British Government has apparently accepted the opposing debt revision or cancellation. "That decFrench thesis of a temporary rather than a perma- laration," a Paris report of last Saturday to the New
nent solution of the German situation, with the York "Times" said,"will be of inestimable use to all
retention of the principle of the Young Plan," the on this side of the Atlantic who put the payment of
dispatch said. "The French have indicated they are reparations by Germany before any other financial
willing to make large concessions to British finan- or commercial consideration. It will undoubtedly
cial demands, especially for the 'preferential' treat- strengthen the hands of France at the forthcoming
ment of private debts." In Berlin the meeting of reparations conference and stiffen the terms Which
the international committee of bankers on German will be sought from Germany, and it will make more
short-term credits was adjourned Tuesday for a brief difficult the task of the British Government in tryChristmas holiday and sessions will be resumed ing to put business before reparations." A London
dispatch of Sunday to the "Times" stated that the
Dec. 28.
tendency toward isolation revealed by the speeches
Overwhelming approval has been given by both in Congress is driving Britain to expect little
houses of Congress to a joint resolution approving assistance from the United States in solving the
4202
FINANCIAL CHRONICLE
problems of the war debts and reparations. "The
speeches are having an educational effect which is
likely to be as profound upon British foreign policy
as upon American," the report continued. "The evidences of isolationism in Congress are strengthening
a twofold determination in Britain: first, to
strengthen every tie making for British Empire solidarity, and, second, to explore to the limit every
opening for a united European policy, especially for
a common Franco-British policy on debts and reparations."
[VOL. 188.
to influence their determination in regard to cancellation one iota, or to affect their liquidity or
resources.
When asked by Senator King last Saturday
whether he believed the current suspension of intergovernmental payments will encourage the German
Government to request a further moratorium next
year, Mr. Mitchell replied that of course he could
not tell. "But I think," he added, "we Should all
recognize that possibly there was set up by the original Dawes Commission a principle that since has
been violated by all nations, a principle that apUncommon interest attaches to the opinions of pealed to me and still appeals to me to be a sound
prominent New York bankers on German political one, to wit, that debts created as a result of the war
and private debts, expressed at hearings of the Sen- should be established in such amount that can be
ate Finance Committee, which is investigating for- paid by that nation operating under all of the bureign bond flotations in the United States. Thomas dens that their creditors may be operating under
W.Lamont, of J.P. Morgan & Co., was the first wit- during the life of that generation that had to do
ness, his testimony being given Dec. 18. In addition with the war." Citing the extension of the original
to furnishing illuminating details of foreign bond Dawes plan payment period of 35.years to the Young
flotations in which the Morgan firm played a lead- Plan period of 62 years, Mr. Mitchell indicated that
ing part, Mr. Lamont made some reassuring com- he viewed the matter from certain basic facts.
ments regarding such loans. "I assume," he said,
"Here we have in Germany to-day young men going
"that no loan has ever been made by any banker with- into the universities who were not born when the
out the taking of proper precautions. As for German great war started," he continued. "Those young men
municipal issues,about which there has been so much see that not only they, but their progeny and the
talk, I don't think the German people are going to progeny of their progeny, must pay and go on for
repudiate those. In no case, up to date, has the these generations in paying a debt for which they,
service been in default." Mr. Lamont termed "exag- as individuals, were not responsible. They feel that
gerated" and "fantastic" the rumors that American they are under the heavy yoke, and my impression
banks are "loaded up" with foreign securities, and is that there is growing, as a result thereof, rebellion
declared specifically that German short-term loans against the payment of the debt. I think it is someare not a danger to American institutions.
thing that is readily understandable, and if you ask
"There has been a great deal of misunderstanding me if it is my opinion that Germany will go through
and exaggeration in the public mind in regard to the this entire period and pay off the amount of debt
extent of the holdings of American banks in short- that has been set under these various plans for her
term German bank credits," Mr. Lamont stated. "It to pay, I cannot conceive it to be possible, because
is a very unfortunate misunderstanding and exag- I think that it will bring rebellion." When asked
geration because an entirely wrong impression, in by Senator Watson if his views would not apply to
our judgment,has been created. What has happened England and France, quite as much as to Germany,
has been simply this, that the American banks, and Mr. Mitchell conceded that this would be so. Senator
the big banks generally, from the Atlantic to the Reed pointed out that the statement applied with
Pacific, have had German banking correspondents equal force to the growing generation of Americans
for years, probably for generations, and they have who had nothing to do with the war,and Mr. Mitchell
been in the habit of granting commercial and some- agreed that the argument is quite unanswerable and
times other sorts of credits to these German banks leads to an impasse. "The countries involved in this
for the financing of the exports of cotton, copper question have found a problem that is political and
and all sorts of things. I have notlooked at the port- psychological," Mr. Mitchell stated. "I do not befolios of the banks in New York, but I happen to lieve that it can be taken quite on the simple basis
know that the largest amount of credit outstanding that the debt was contracted and the debt must be
in any bank is $70,000,000, or thereabouts, and it paid. I am not preaching, in what I say, any docwould be in the case of a bank whose other capital trine of cancellation. I want that to be clear. I am
resources were so large that it was not a matter of trying to develop some of the psychology of the
danger or even of comment."
people that may have a direct bearing on this
Charles E. Mitchell, Chairman of the National City question."
Bank, was the second witness before the committee,
Otto H. Kahn, of Kuhn, Loeb & Co., appeared bebeginning his testimony late Dec. 18 and concluding fore the Committee Monday, and he justified on the
it on Dec. 19. When asked if he favored reduction basis of reasonable banking experience the granting
or cancellation of intergovernmental debts, Mr. Mit- of short-term credits in Germany by American banks.
chell replied that he was "prepared to leave the ques- The bankers of England and Holland, with their long
tion absolutely where it belongs,in the United States and admirable traditions, made much larger adCongress." Although not a believer in cancellation, vances of this nature in Germany, in proportion to
he "inclined to the belief that here and there, at the resources of the two nations, than did the Amerleast,it will be determined that there should be some ican banks, Mr. Kahn pointed out. He estimated
scaling." Reminded by Senator Gore that the Sen- that German short-term debts to American banks
ate investigation grew out of the belief that a group are "something in excess of $600,000,000, which I do
of large New York banks desire to force a reduction not consider an exorbitant sum for a great creditor
or cancellation of the war debts, Mr. Mitchell ex- nation to extend as an accommodation- to an intellipressed the opinion that the holdings of foreign gent, hard-working European nation of the ability
securities in New York banks are in no ease enough and proven and tested capacity of Germany." Mr.
DEC. 26 1931.]
FINANCIAL CHRONICLE
4203
Kahn expressed the belief that the German Govern- accompanying the request, it was stated that the
ment and municipalities will ultimately pay all debts need for armaments limitation and reduction is now
to private individuals, but he expressly avoided any more urgent than ever, and that the "threat of a new
race in armaments hangs like a dark cloud over
prediction in regard to reparations.
disturbing political tranquillity and preEurope,
what
Barkley
Senator
by
asked
Mr. Kahn was
consolidation of peaceful and harmonithat
venting
of
the
priority
the
to
regard
in
is
banking opinion
European governmental •and private obligations, ous relations between nations without which a return
assuming that both could not be paid. The banker to prosperity is impossible." The expenses of the
pointed out, in reply, that privately held loans are delegation were estimated at $55,000 a month, indinot under any moratorium and that interest and cating that the meeting is expected to last the better
sinking fund payments are being made regularly. part of a year.
Press dispatches from Paris and London suggest"As to whether the governmental claims or private
the possibility of postponement have been freing
can
necessarily
one
have
precedence,
debts should
only express an opinion, which is subject to contro- quent of late, and they all display marked pessimism
versy and subject to error," Mr. Kahn continued. regarding the prospects of genuine achievement at
"My own belief is that the essential thing is to keep the conference. Such reports, obviously in the
the economic life of a country going, because the nature of political trial balloons, have not so far sucgovernment would very soon find itself out of funds ceeded in disclosing any popular sentiment for delay.
unless the economic life is going. In order to keep None of the larger governments appears willing,
the economic life of a country going, in order to pay moreover, to take the initiative in an official move
taxes, in order to enable it to do its daily work, the for postponement. There is also every indication
sanctity of contracts must be protected to the limit that the gathering of 63 nations will be presided over
of what is possible. It is of less importance that one by Arthur Henderson,former British Foreign Seem
government pay another government to the minute tary, in accordance with the invitation extended to
and upon the day what it owes, if it can by mutual him in his personal capacity. M. Henderson now
consent secure a postponement, than that the con- holds no office and is not even a Member of Parliafidence of the ordinary individual, dealing in one ment, and his prospective chairmanship of the concountry with another individual in another country, ference is proving embarrassing to the British Govor a business man dealing with another business man, ernment and the League Secretariat.
should be profoundly shaken in the faith and credit
The new Spanish Government promulgated a
of the business community with which he does busitariff decree Wednesday that is clearly reflective of
ness in another country."
Asked whether he advocated cancellation of gov- the world-wide movement toward prohibitive trade
ernmental debts, Mr. Kahn replied that he has never barriers. It is obvious that this movement, at the
advocated such cancellation. "But I have advocated rate it is now being carried on, will soon result either
in public that, if ever a nation is entitled to get its in virtual suspension of international trade or else
money back,the United States was entitled to get its in complete collapse of the so-called protective syswar debts back," he added. We went into the war tems and a return to sensible consideration of the
and we did our full share, God knows! We asked problem. Fourteen classes of imports are affected
for none of the spoils,and we got what we asked for— by the Spanish decree, which is the first signed by
none. It seems to me that in plain justice, in ethics, President Alcala Zamora since taking office. The
we have not a thing to apologize for in saying we duties on the products, which include automobiles
want our debts paid,for which we did our full share. and telephone equipment, are raised to insurmountBut I de not think that it is a matter of justice; able heights, a Madrid dispatch to the New York
it is a matter of expediency, and I think it should be "Times" states. "There is no equivocation about the
dealt with as a matter of expediency. It is what at motives actuating Spain,"it is remarked. The tariff
the moment is the most expedient or the best thing increases are clearly in the nature of reprisals, and
for America to do." Mr. Kahn's testimony was not these are to be carried further at the discretion of
completed when the Committee adjourned Monday, the Minister of Commerce, who is empowered to add
and he will again be heard when the Committee re- more items to the list. Immediate revision of comsumes on Jan. 4. Representatives of the Chase mercial treaties with "most-favored-nation" clauses
National Bank, the Guaranty Trust Co., and Dillon, also was decreed. These measures are temporary,
Read & Co. also will appear thereafter, it is in- the decrees state, and are to be reconsidered when
world commerce returns to normal. Meanwhile, the
dicated.
French policy of applying quotas on imports of cerAnnouncement was made by President Hoover, tain classes is causing due repercussions which
Tuesday, that General Charles G. Dawes, United promise to reduce French trade markedly. Canada
States Ambassador to London, will head the Amer- denounced late last week her trade treaty with
ican delegation to the general disarmament confer- France, and Italy and Lithuania took similar action.
ence which is scheduled to begin at Geneva Feb. 2. Premier Renkin of Belgium announced Wednesday
The statement, coupled with the earlier indication that he intends to make use of the powers conferred
that Senator Claude Swanson of Virginia will be a on the Cabinet to increase tariffs and regulate immember of the Washington delegation, tends to set ports. The German Government recently began
at rest the numerous rumors that the meeting will negotiations with Great Britain for modification
be postponed. That such reports are not taken seri- of the new British anti-dumping duties, but Berlin
ously in Washington was demonstrated Monday, was notified Dec. 18 that London is unable to make
when President Hoover sent to the Congress a special any concessions.
message requesting an initial appropriation of
Difficulties experienced by the Hungarian Gov$450,000 to defray the expenses of the American delein obtaining sufficient foreign exchange to
ernment
gation. In a report from Secretary of State Stimson,
4204
FINANCIAL CHRONICLE
[VOL. 113.
meet the service on external debt occasioned a long- Australia party, and headed by Joseph A. Lyons.
anticipated announcement, Tuesday, of a partial Mr. Scullin resigned his office, Monday, without
moratorium. The suspension will mean the deposit waiting for the final election returns, and advised
in pengoes, within Hungary,of sums due for interest Governor-General Sir Isaac Isaacs to send for Mr.
and amortization on approximately two-thirds of the Lyons, who promptly accepted the task of forming a
aggregate external debt of about $715,000,000. An new Cabinet. The overturn was hailed throughout
attempt will be made to meet, in the currencies in Australia and was also viewed with gratification in
which they are payable, the sums due on the remain- conservative circles in England, where it was pointed
ing one-third of the foreign debt. Preference is to be out that the incident paralleled the British repudiagiven to the League of Nations, or reconstruction, tion of Socialism at the general election in October.
loan of 1924, on which some $4,000,000 is due The policy on which the United Australia party went
annually, while if additional foreign exchange is before the country is that of making Australia again
available payments will be met similarly on the an attractive field for the investment of money.
secured relief loan, the secured Treasury bills, the "The only real choice the people had to make," Mr.
Caisse Commune obligation, the Austro-Hungarian Lyons declared last Sunday, "was between sound
State Railway, and the Danube-Save-Adriatic Rail- finance, as against currency inflation and political
way loans, the payments to be made under the Lon- control of currency and credit. It was absolutely
don protocol of Aug. 11 1931, and the pre-war city of essential that there should be a complete restoration
Budapest loan, in the order stated. Payments due of confidence in government finance, together with a
on the obligations named are estimated in a Budapest thorough belief in the soundness of Australia's bankdispatch to the New York "Times" at $20,000,000 ing system. The endorsement by a majority of the
annually, while the remaining service on foreign debt people of the policy for which our party stands should
is said to be approximately U0,000,000 annually. remove fear of a Government default, which was an
Service on the latter obligations, and also on the important contributory cause to the present depresformer in so far as they cannot be met in foreign sion. Further, private enterprise will now be given
exchange, will be deposited in pengoes at the rate a feeling of financial security which has been sadly
quoted the day before sums are due, in an account lacking in recent months."
at the National Bank of Hungary for the benefit of
The new Prime Minister was a member of Mr.
bondholders.
Scullin's Cabinet for a time, but he resigned when
This partial or "transfer" moratorium was fore- E. G. Theodore, a semi-inflationist, was invited to
shadowed by the application for relief made by the rejoin the Cabinet. He has repeatedly expressed
Hungarian Government to the League of Nations himself in favor of closer trade relations with the
Finance Committee and by recent pronouncements United Kingdom and with other parts of the Empire,
of leading Cabinet Ministers. The announcement and is expected to urge preferential trade agreements
thus occasioned little comment in international at the Ottawa Imperial Conference next summer.
financial centers. American investments in the The Cabinet will rely for support upon an anti-Labor
country were estimated at the end of last year at bloc of 52 members in the new House of Representa$118,878,000. In the official statement of the Hun- tives, as against a total Labor group of 23 members.
garian Government it was indicated that the sus- In the House, which was prorogued Nov. 26, after 25
pension would be made effective Wednesday. The months of Labor rule, the Laborites numbered 40,
action was attributed to "the exceptional decline in while the opposition group consisted of 35 members.
the prices of the principal Hungarian exports and Although Mr. Scullin himself was returned to the
the consequent difficulty, in present circumstances, House by a diminished majority, most of the former
of obtaining sufficient exchange for foreign debt re- Ministers were defeated. The most conspicuous vicmittances." The National Bank of Hungary will tim was former Commonwealth Treasurer Theodore,
receive authorization, it was further stated, to sell who resigned under charges of graft preferred by a
to Hungarian nationals foreign exchange for the pur- royal commission, but who was later reinstated. The
pose of meeting interest or discount and commission motion of censure on which the life of the Scullin
on short-term debts to bankers and others, and of Ministry hinged was based on a charge that Mr.
giving effect to appropriate standstill arrangements Theodore had tried to influence voters with money
which the Government intends to propose to short- granted by the Government for the relief of unemterm creditors in foreign currencies for a period of ployment. The motion was voted and dissolution of
six months. Any interest earned by the pengo ac- the House quickly followed.
count at the national bank will be applied for the
benefit of the creditors, less expenses incidental to
Japanese military forces in Manchuria began
administration. "The Hungarian Government," the early this week a swift and determined movement
announcement concludes, "will request the foreign toward Chinchowfu, which is expected to result in
governments concerned to accept temporarily simi- speedy consolidation of the Japanese control of Manlar arrangements as regards the outstanding clearing churia and withdrawal of all remaining Chinese
office payments. In the event of any monopolies or troops behind the Great Wall, into China proper.
other public assets being disposed of abroad, the Ample advance notice was given by the Japanese
proceeds of such disposal will be applied to lighten- commander, General Shigeru Honjo,in recent weeks,
ing Hungary's existing burden of external in- that he intended to secure control of Chinchow, by
debtedness."
whatever means might be necessary. The Nanking
and Peiping Governments were warned repeatedly
A national election in Australia last Saturday re- to withdraw the military forces of Chang Hsuehsulted in the smashing defeat of the Labor groups Hang, former War Lord of Manchuria. Control of
headed by Prime Minister James H. Scullin and an Chinchow is considered necessary by the Japanese,
impressive victory for the coalition of Right Wing as the city straddles the Peiping-Mukden Railway
Laborites and Nationalists, known as the United and is located on the narrow strip of land between
FINANCIAL CHRONICLE
DEC. 26 1931.1
sea and marshes which affords communication between Manchuria and old China. The way for this
movement was left open by the Japanese reservation
to the resolution adopted unanimously by the League
Council at Paris, providing for cessation of warfare.
The right was reserved to suppress banditry, and the
movement toward Chinchow is accordingly described
officially as a drive against bandits. Japanese infantry, artillery and aerial forces combined in the
drive, which began Monday. General Honjo issued
a statement Tuesday to the effect that the Japanese
forces will brook no interference from any source in
their drive against bandits until the region is cleared.
Washington reports of Dec. 18 stated that concern
would again be expressed orally at Tokio by W.Cameron Forbes, the United States Ambassador, regarding the indications of army operations in the direction of Chinchow.
4205
ings, this time of 70,188,167 francs. The total of
gold is now 68,063,696,256 francs, in comparison
with 53,283,850,425 francs a year ago and 41,387,666,642 francs the year before. An increase is shown
in bills bought abroad of 206,000,000 francs, while
credit balances abroad decrease 443,000,000 francs.
Notes in circulation contracted 122,000,000 francs,
reducing the total of notes outstanding to 82,526,000,000 francs. Circulation last year was 75,369,153.765 francs and the year previous it was 67.149,395,400 francs. French commercial bills discounted
and creditor current accounts increased 194,000,000
francs and 175,000,000 francs, while advances against
securities showed a loss of 40,000,000 francs. The
proportion of gold on hand to sight liabilities stands
this week at 60.20%, as compared with 53.78% last
year and 47.86% two years ago. A comparison of
the various items for three years is furnished belowl
BANK OF FRANCE'S COMPARATIVE STATEMENT.
as o
Status
Changes
The National Bank of Czechoslovakia reduced its
for Week.
Dec. 18 1931. Dec. 19 1930. Dec. 20 1929.
Francs.
Francs.
Prance.
Francs.
discount rate on Tuesday, Dec.22,from 61/2% to 6%. Gold holdings_ _ _ _Inc. 70,188,167 68.063,696,256 53,283.850,425 41,387.666,642
abr'd_Dec. 443.000,000 15,335,000,000 6,683,571.485 7.291,163,721
Rates are 8% in Austria and Hungary;
in Ger- Credit hal&
a French commer'l
1
2% in Spain and Ire- bills discounted_Inc. 194,000.000 6,387,000,000 7,267,824.458 7,257,828,727
many, Portugal and Italy; 6/
bBillsbought abr'dIno. 206.000.000 9,189.000.000 19,408.400,248 18.771.058,912
land;6% in Norway, Sweden, Denmark, Danzig and Adv.
agt. secure_ _Dec. 40,000,000 2,794.000.000 2,930.070,961 2.543,144.243
82.526,000.000 75,369.153,765 67,149,895.400
Czechoslovakia, and in England;
in Holland; Note circulation—Dec. 122,000.000
Cred. curr. accts__Inc. 175.000,000 30,531,000.000 23,712.182.800 19,322,255.735
1
2% in France and Switzer- Propor. of gold on
2/
1
2% in Belgium, and 2/
to sight lialand. In the London open market discounts for short hand
60.20%
53.78%
.3%
Inc.
47.86%
bilities
/
4@6%, the same as on a Includes bills purchased in France. b Includes bills discounted abroad.
bills on Thursday were 53
Friday of last week, and also 5%@6% for three
months' bills, the same as the previous Friday.
There have been no changes in money market conMoney on call in London on Thursday was 3/
1
2%. At ditions during the short business week now ending,
Paris the open market rate continues at 17
/8%,and in funds remaining available at the levels established
Switzerland at 134%.
in earlier dealings. Call loans on the New York
Stock Exchange have been 3% for all transactions,
The Bank of England statement for the week whether renewals or new loans. Withdrawals by
ended Dec. 23 shows a further small loss in gold the banks amounted to approximately $10,000,000
holdings, amounting this week to £75,096. This, Monday,but they were nominal thereafter. No offertogether with an expansion of £6,497,000 in circu- ings at concessions from the official level have been
lation, brought about a falling off of £6,572,000 in noted in the outside market. Time loans also remain
reserves. The Bank's go'd now aggregates only unchanged. Brokers' loans against stock and bond
£121,353,268 as compared with £148,821,432 a year collateral have again been repaid in substantial volago. Public deposits rose £2,615,000 and other de- ume,the report of the Federal Reserve Bank of New
posits decreased £514,070. The latter consists of York showing a decrease of $51,000,000 in the volume
bankers accounts which fell off £1,056,121 and other outstanding during the week ended Wednesday
accounts which increased £542,051. The ratio of night. Gold movements for the same period conreserve to liabilities is off sharply from 26.62% last sisted of exports of $7,375,000 and imports of
week to 20.94% now. The ratio was 29.08% a year $3,451,000. The stock of gold earmarked for foreign
ago. Loans on government securities increased account increased $11,378,000.
£6,140,000 and those on other securities £2,530,845.
Dealing in detail with call loan rates on the Stock
The latter consists of discounts and advances and
securities which increased £664,614 and £1,866,231 Exchange from day to day,3% was the ruling quotarespectively. The rate of discount remains at 6%. tion all through the week, both for renewals and for
Below we furnish a comparison of the different items new loans. Time money is still inactive, and the
for five years:
market for this class of accommodation is practically
without movement. Rates are unchanged at 3@4%
BANK OF ENGLAND'S COMPARATIVE STATEMENT.
1930.
1929.
1931.
1928.
1927.
on
all maturities. These quotations are nominal,howDec. 24.
Dec. 25.
Dec. 26.
Dec. 23.
Dec. 28.
ever, as each transaction is given special attention.
370.032,000 379.676,869 379.573,000 388,242.899 138,711,420
Circulation a
Public deposits
14,614,000 10.284.679 8,829.000 12.969.050 14,561,638 The market for prime commercial paper had been
Other deposits
111,002,963 89,905,609 106,837,470 107,001,102 123,975.164
very quiet this week, and while the supply is still
Bankers accounts_ 72,281.664 56,217.226 71,048,531
Other accounts_ _ _ 38,721,299 33.688,383 35,788,039
short it has been sufficient to meet the present needs.
Govt. securities- -__ 67.605,906 51,736,247 67,123,855 67,296.855 48,578,992
choice names
Other securities_ - 49.612,335 37,213,354 40,035,106 44,785,930 74,448,730 Rates are unchanged. Quotations for
Disct. & advances 13,536,612 14.199,048 22,300.076
4%.
maturity are 334(0)41/
months'
six
four
to
of
Securities
36,075,723 23.014,306 17.735,120
/2%. On some very high
Reserve notes & nein 26,321,000 29,144.563 26,453.000 25,824,375 83,447.429 Names less well known are 41
Coln and bullion_ _ _121,353,268 148,821,432 146.027.587 154.067,274 152,408,840
1
2%
class 90-day paper occasional transactions at 3/
Proportion of reserve
20.94%
29.08%
21%
to liabilities
noted.
22.80%
2434% continued to be
Bank rate
6%
3%
5%
43'5%
434%
a On Nov. 29 1928 the fiduciary currency was amalgamated with Bank of England note Issues adding at that time .C234,199.000 to the amount of Bank of England
notes outstanding.
The market for prime bankers' acceptances has
again been very slow this week. The small supply
The weekly statement of the Bank of France, of paper has proved sufficient to meet all demands.
dated Dec. 18, reveals a further gain in gold hold- Rates remain unchanged from last week. The quota-
4206
FINANCIAL CHRONICLE
[VoL. 133.
tions of the American Acceptance Council for bills
up to 90 days are 31/8% bid, 3% asked; for four
months' bills, 3/
1
4% bid, 3% asked; for five and six
months,378% bid and 35
/
8% asked. The bill buying
rate of the New York Reserve Bank remains unchanged at 3% on maturities up to 45 days, and at
3144% on maturities of 46 to 90 days. The Federal
Reserve banks show a further decrease this week in
their holdings of acceptances, the total having fallen
from $307,077,000 to $257,351,000. Their holdings
of acceptances for foreign correspondents further increased from $214,446,000 to $238,648,000. Open
market rates for acceptances are as follows:
debt and reparations suspension are now assured
until July. Gold continues to sell at a premium in
London and was quoted several times during the
week at a range of from 120s. 2d. to 122s. id. per
ounce. This week the Bank of England shows gold
holdings of £121,353,268, which compares with
£121,428,364 on Dec. 16 and with £148,821,432 a
year ago. At the Port of New York the gold movement for the week ended Dec. 23, as reported by
the Federal Reserve Bank of New York, consists of
imports of $3,451,000, of which $1,995,000 came
from Canada, $633,000 from India, $260,000 from
Cuba, $243,000 from Mexico and $320,000 chiefly
SPOT DELIVERY.
from other Latin American countries. Gold exports
—180 Days— —150 Darr— —120 Days—
Bid. Asked.
Bid. Asked.
Bid. Asked. totaled $7,375,000, of which $4,439,000 was sent to
Prime eligible bills
334
334
334
334
334
3
—90Days— —60Daps— —30Days— Holland, $2,190,000 to France, $484,000 to SwitzerStd. Asked.
BO. Asked.
Bid. Asked.
Prime eligible Ma
3
land, $200,000 to Belgium and $62,000 chiefly to
334
334
3
314
3
FOR DELIVERY WITHIN THIRTY DAYS.
other European countries. There was an increase of
Eligible member banks
314 bid
Eligible non-member banks
3H bid $11,378,000 in gold earmarked for foreign account.
In tabular form the gold movement at the Port of
There have been no changes this week in the redis- New York for the week ended Dec. 23, as reported
count rates of the Federal Reserve Banks. The by the Federal Reserve Bank of New York, was
following is the schedule of rates now in effect as follows:
for the various classes of paper at the different GOLD
MOVEMENT AT NEW YORK,DEC.17-DEC.23,INCLUSIVE
Reserve Banks:
Imports.
Exports.
DISCOUNT RATES OP FEDERAL RESERVE BANKS ON ALL CLASSES
AND MATURITIES OF ELIGIBLE PAPER.
Federal Reserve Bank.
Borten
New York
Phlladelphla
Cleveland
Richmond
Atlanta
Chicago
St. Louie
Minneapolis
Kansas City
Dallas
Ban Francisco
Rate in Effect
on Dec. 24.
Dais
Established.
Preobas
Rats.
334
314
334
334
4
334
314
Oct. 17 1931
Oct. 16 1931
Oct. 22 1931
Oct. 241981
Oct. 20 1931
Nov. 14 1931
Oct. 17 1931
Oat. 22 1931
Sept. 12 1930
Oat. 13 1931
Oct. 21 1931
Oct. 211981
234
234
II
3
334
334
334
4
334
3
3
234
234
34
3
234
Sterling exchange has been exceptionally quiet
this week and showed a softer tone, following the
trend which developed on Friday of last week when
the exchange broke sharply, with cable transfers
closing at 3.34. A sudden upswing, accompanied
by considerable activity in trading, on Wednesday
developed a range of from 3.413 to 3.429. This
upturn is a usual event in the few days before Christmas and is attributed, as always, to the regular
"window dressing" operations of foreign banks,
which normally recall some of their funds from this
market in order to present a favorable showing in
their year-end statements. It is also known that
there are considerable transfers for gift remittances
at this season. While individual checks may be
small, in the aggregate they create a marked demand
for foreign exohange. Aside from these special
transactions, all exchanges are exceptionally quiet
in the period just prior to and subsequent to the
Christmas holiday. There was no market yesterday
(Friday) in any centre. The range this week has
been from 3.37% to 3.43% for bankers' sight bills,
compared with 3.333.t to 3.463j last week. The
range for cable transfers has been from 3.383 to
3.44, compared with 3.33% to 3.463 last week.
The foreign exchange market is expected to continue
quiet until the first week in January.
In all important respects the underlying situation
of sterling presents no new features since the abandonment of gold on Sept. 20. However, part of the
firmness which was displayed in trading on Wednesday is attributed in some quarters to improvement
in sentiment as a result of the passage by the United
States Senate of the Hoover moratorium plan. War
$1,995,000 from Canada
84,430,000 to Holland
633,000 from India
2,190,000 to France
260,000 from Cuba
484,000 to Switzerland
243,000 from Mexico
200,000 to Belgium
320,000 chiefly from Latin Ameri62,000 chiefly to other European
can countries
countries
83,451,000 total
87,375,000 total
Net Change in Gold Earmarked for Foreign Account.
Increase, $11,378,000
On Thursday gold exports were $3,641,700, of
which $2,791,700 went to Belgium, $550,000 to
France and $300,000 to Holland. Imports were
$374,700, of which $189,800 from England and
$184,900 from Straits Settlements. There was also
a decrease of $2,393,400 in gold earmarked for foreign account. Yesterday being a holiday (Christmas Day), there were no reports on the gold movement. During the week approximately $20,251,000
of gold was received at San Francisco, of which
$18,688,000 came from Japan, $1,063,000 came
from Australia and $500,000 came from China.
Canadian exchange continues at a severe discount.
On Saturday last Montreal funds were at a discount
of 193i%, on Monday at 19 3-16%, on Tuesday at
17%%, on Wednesday at 17%% and on Thursday
at 183j%. On Monday Canadian papers carried
accounts of a meeting of bankers with Prime Minister
Bennett, at which the exchange situation was discussed. As a result of the meeting, J. A. McLeod,
General Manager of the Bank of Nova Scotia and
President of the Canadian Bankers Association,
forwarded a letter to the central bodies of such
financial groups as banks, trusts, loan companies,
stock exchanges and investment banking houses,
outlining proposals for an unofficial "prohibition"
of the purchase of Canadian or other securities in
outside markets by residents of Canada. It is hoped
by this means to overcome in some measure the
severe discount of the Canadian dollar.
Referring to day-to-day rates, sterling exchange
on Saturday last was dull with an easier tone. Bankers' sight was 3.383/2(4)3.403/2; cable transfers, 3.39(:
3.41. On Monday the market was quiet and softer.
The range was 3.37%@3.3934 for bankers' sight
bills and 3.383@3.40 for cable transfers. On
Tuesday exchange was slightly firmer in a dull market. Bankers' sight was 3.393@3.40%; cable
FINANCIAL CHRONICLE
DEC. 261931.]
4207
small decrease in note circulation. The amount of
bank notes in circulation on Dec. 10 was 14,152,000,000 lire, the lowest figure in the last five years.
There has been a decrease of 7,746,000,000 lire since
December 1920, when note circulation totaled 22,000,000,000 lire, the highest ever reached in Italy.
In the first 11 months of 1931 Italian imports totaled
10,662,000,000 lire and exports were 9,046,000,000
lire. However, the excess of imports over exports
decreased from 4,645,000,000 lire to 1,615,000,000.
Exchange on Czechoslovakia is quiet and has been
remarkably steady for the past few years. It is
commented upon at this time simply because the
National Bank of Czechoslovakia reduced its reExchange on the Continental countries is quiet and discount rate on Tuesday from 63/2% to 6%.
Hungarian exchange is at all times of minor imwas more or less inactive in the early part of the week,
but like sterling turned upward on Wednesday and portance in the New York market. Interest atfor much the same reasons. French francs, how- taches to it at this time because on Wednesday a
ever, have been weaker independently of any news long predicted moratorium of two-thirds of the
affecting the other major currencies. Though trad- Hungarian foreign debt became effective. Hungary
ing in German marks is largely nominal, the rate will pay most foreign debts in pengoes (Hungarian
moved up sharply on Wednesday to 23.79-23.80. currency) instead of in foreign currency, but will
This particular advance in the German rate is perhaps continue to pay the interest amortization in foreign
due chiefly to the passage of the Hoover moratorium currency on the League of Nations loan of 1924, so
plan, which as noted above, assures the suspension of far as exchange supplies allow. Further details
war debt and reparations payments until July. At regnrding the action of the Hungarian Government
the same time favorable dispatches were received will be found on another page. Baron Koranyi, the
from Berlin regarding the work of the foreign short- new Finance Minister of Hungary, declared a few
term debt committee, and it now appears probable days ago that Hungary would maintain the gold
that these obligations will be extended over a period standard instead of pegging the currency to sterling
of years and will be gradually liquidated according to or letting it drift. This latter point is considered to
schedule. This is a much more satisfactory arrange- be a victory for France, which has been active in
ment than mere postponement or "freezing" for a resisting the tendency to abandon gold wherever it
specified number of months, as a definite liquidation arises. The market for Hungarian currency in New
York is largely nominal. It has been steady for a
program can be followed.
French francs have followed a course all their own. long time around 17.50. The par of the pengo is
On Thursday dispatches from Paris stated that a 17.49.
compromise has been reached in the demands of the
The London check rate on Paris closed at 87.50 on
French Senate Finance Commission and the Bank Thursday of this week, against 84.75 on Friday of
of France on the sterling loss bill. During the sum- last week. In New York sight bills on the French
mer run on the British unit, the French Government centre finished on Thursday at 3.92 8, against
virtually compelled the Bank of France to maintain 3.93 9-16 on Friday of last week; cable transfers at
its sterling holdings intact, which of course resulted 3.923
4, against 3.93%, and commercial sight bills
in heavy losses by the Bank of France. The passage at 3.92%, against 3.9334. Antwerp belgas finished
of the bill by the French Senate will enable the Bank at 13.94 for bankers' sight bills and at 13.943' for
of France to show a strong annual balance sheet, cable transfers, against 13.90 and 13.90
Final
which is customarily published as of Dec. 24. The quotations for Berlin marks were 23.75 for bankers'
Bank of France statement as of Dec. 18 shows total sight bills and 23.77 for cable transfers, in comparison
gold holdings of 68,063,696,256 francs, which com- with 23.73 and 23.75. Italian lire closed at 5.0934
pares with 67,993,508,089 francs on Dec. 11 and with for bankers' sight bills and at 5.093/ for cable trans53,283,850,425 on Dec. 19 1930 and with 28,935,- fers, against 5.0894 and 5.09. Austrian schillings
000,000 francs following stabilization of the franc in closed at 14.15, against 14.15; exchange on CzechoJune 1928.
slovakia at 2.963/2, against 2.963/2; on Bucharest at
Italian exchange fluctuated rather widely during 0.5932, against 0.5932; on Poland at 11.25, against
the past few days. On Monday the unit was weak 11.25, and on Finland at 1.55, against 1.60. Greek
and opened at 5.07. but strong buying caused it to exchange closed at 1.28% for bankers' sight bills and
advance to 5.113/
2, which was 23/ points above at 1.28 8 for cable transfers, against 1.289/i and
Saturday's close and compares with the closing quo- 1.28%.
tation of 5.09 on Friday of last week. According
to figures just made public in Rome relating to the
Exchange on the countries neutral during the war,
State budget, next year's estimated expenditures with the exception of Holland guilders and Spanish
will total $1,103.000,000, an increase of $86,000,000 pesetas, shows no new trend. Swiss francs are, as
over the expenditure expected for the present fiscal they have been during the past few years, exceptyear. The Treasury statement just published shows ionally firm. The Scandinavian currencies flucanother deficit for the first five months of the present tuate in close adherence to the action of the pound
fiscal year, totaling $73,000,000. Dispatches from sterling, with which they are closely allied through
Rome state that the Government is determined to commercial interest. It will be recalled that Holland
keep down the note issue to the lowest possible level, guilders broke sharply on Tuesday of last week, but
and each new statement of the Bank of Italy shows a recovered the next day. This week guilders con-
transfers 3.393/2@3.413/8. On Wednesday the market was firmer and more active. The range was
3.4114@3.423/ for bankers' sight and 3.41%@
3.429 for cable transfers. On Thursday the market
was practically at a standstill, but still firmer. The
range was 3.42%@3.43% for bankers' sight and
3.43©3.44 for cable transfers. On Friday, Christmas, there was no market. Closing quotations on
4 for
Thursday were 3.433 for demand and 3.433
cable transfers. Commercial sight bills finished at
3.42; 60-day bills at 3.38; 90-day bills at 3.36; documents for payment (60 days) at 3.38, and seven-day
grain bills at 3.4234. Cotton and grain for payment closed at 3.42.
immnim,11
4208
FINANCIAL CHRONICLE
[Von. 133.
tinned to advance and have been above par most of supply of cash is limited. Under the present decrees
the time. They were quoted on several occasions the bank can do this so long as the gold in the Caja
as high as 40.27, though there was a reaction to equals 40% of the note circulation. On Dec. 5, the
40.15 on Wednesday and to 40.14 on Thursday. gold stock, including 4,145,000 gold pesos held
Par is 40.20. The recent break in guilders was due abroad, amounted to 273,472,478 gold pesos and
to reports widely current that Holland would go off note circulation 1,220,458,644 paper pesos. Rethe gold basis in order to meet increased Japanese discounts amounted to 305,912,053 paper pesos and
competition in the Far Eastern markets. Similar it is estimated that advances up to another 340,reports have been circulated ever since the British 000,000 paper pesos can be made on the present gold
crisis in September, and it has been denied frequently stock. Last week the Bank of Brazil decided that the
and emphatically in official quarters that any such rediscount section of the bank would accept coffee
abandonment of the gold standard would occur. drafts up to 600,000 contos, about $38,160,000 at
Dutch colonial interests have favored a suspension present exchange rates or $72,000,000 at par. A fiof gold payments, claiming that the current low nancial reform is planned to take place in Brazil imprices for their raw commodities make it impossible mediately, which it is understood will include a
to compete with producing countries with depre- clause whereby national and foreign banks would be
ciated exchange. Amsterdam, however, opposes obliged to deposit with the Bank of Brazil 10% of
this viewpoint on the ground that the loss to the coun- the total deposits in their current accounts, and the
try as a whole, through loss on foreign investments plan will have other stipulations which would virtupayable in guilders and lowered prestige of the ally place in the hands of the Bank of Brazil the fiscal
guilder, would more than offset any gain to the ex- banking operations of the entire country.
port trade.
Argentine paper pesos closed on Thursday at
Exchange circles are interested in a Madrid dis- 25 15-16 for bankers' sight bills, against 25 15-16
patch on Wednesday stating that the Spanish authori- on Friday of last week, and at 26.00 for cable transties are considering the withdrawal of the Central fers, against 26.00. Brazilian milreis are nominally
Control Bureau from foreign exchange operations. quoted at 5.95 for bankers' sight bills and 6.00 for
This body was set up a number of months ago to cable transfers, against 5.95 and 6.00. Chilean
control the peseta fluctuations and has been com- exchange is nominally quoted 123', against 123/
8.
paratively successful thus far. It has been a matter Peru is nominally quoted 27.80, against 27.80.
of comment that pesetas, which were a few months
ago the widest fluctuating European currency,
Exchange on the Far Eastern countries presents
should have been so stable during the past three no new features since the abandonment of the gold
months. The stability was maintained through standard by Japan on Monday, Dec. 21. The
credits against gold deposited by the Bank of Spain Chinese units continue to rule relatively higher than
with the Bank of France, but it is now believed that in several months past owing to the better prices of
these credits have been practically exhausted and silver. Silver is now around 30M cents in New York
that the Bank of France is unwilling to extend its and 20 5-16 pence in London. May silver in New
operations further in this direction. It is said in York is around 31.75 to 32.20. Japanese yen are of
local exchange circles that if the operations of the course easier since the announcement of the gold
control bureau come to an end the peseta will prob- embargo. While at present the yen seems to be
ably be allowed to seek its natural level again and a receiving some sort of official support, or to put it
new period of fluctuation will set in.
another way, "unofficial control" nevertheless the
Bankers' sight on Amsterdam finished on Thurs- market expects to see the rate go still lower. Yen
day at 40.13, against 40.18 on Friday of last week; broke in Tuesday's market to 38.25, but recovered
cable transfers at 40.14, against 40.19, and commer- before the close to 39.50. The recovery gave rise
cial sight bills at 40.05, against 40.00. Swiss francs to rumors of support. Present yen rates compare
closed at 19.53 for checks and at 19.53 for cable with the closing price on Friday of last week of
transfers, against 19.513/2 and 19.52. Copenhagen 423/
2, and with gold parity of 49.85. According to
checks finished at 18.95 and cable transfers at 19.00, London advises the suspension of gold by Japan is
against 18.55 and 18.60. Checks on Sweden closed regarded in Lombard Street as a measure of sheer
at 18.80 and cable transfers at 18.85, against 18.63 economic necessity and it is pointed out that the
and 18.68, while checks on Norway finished at 19.05 foreign trade of Japan had been adversely affected
and cable transfers at 19.10, against 18.35 and 18.40. by the fall in sterling, by the Chinese boycott since
Spanish pesetas closed at 8.47 for bankers' sight bills the Manchurian crisis developed and to some extent
and at 8.473/i for cable transfers, against 8.463/b and by the rise in silver, a bull movement which is equivalent to a bear movement on the Japanese yen.
8.47.
Through great efforts Japan had reduced its adverse
Exchange on the South American countries is es- balance of trade and this had necessitated heavy shipsentially unchanged, and for that matter that has ments of gold and further loss was foreshadowed by
been true for several months. These units are espe- adherence to the gold standard. Much of the loss
cially quiet during the Christmas season which is in gold, however, must be attributed to the flight of
rather prolonged in the Latin countries. Quotations the yen from the low ruling rates for money in
at present are steady with a shade of firmness, but Japan in the past few years and the purchase of
trading is largely nominal. Advices from Buenos foreign securities both in sterling and dollars previous
Aires state that the Banco de la Nacion is planning to the abandonment of gold by Great Britain in
to assist grain growers in the orderly marketing of September. Again, much of the recent transfers of
crops by advancing 75% of the value of wheat for a I gold from Japan since the British crisis is attributed
period of five months at 63/2% per annum. To do; to Japanese interests which anticipated that Japan
this the Banco de la Nacion will have to rediscount would follow Britain and place an embargo on metal
the grain paper at the Caja de Conversion as the shipments.
DEC. 26 1931.]
FINANCIAL CHRONICLE
4209
which
Tokyo dispatches on Saturday last stated that also keeps the rupee firmly pegged to sterling,
since
the
benefit
similar
sale
a
reaping
turn,
in
is,
Minister,
Viscount Takahashi, the new Finance
British
establishes
claims
London
in
bullion
the
of
in
speculation
has been investigating the extent of
dollars by Japanese since the development of the on gold countries.
Closing quotations for yen checks on Thursday
Manchurian issue and has discovered it to be much
Kong closed at
larger than at first supposed. The amount had were 4031 against 423/2. Hong
15-16; Shanghai
25%@25
8@25 11-16, against
/
been placed at $167,000,000, and it is now estimated 253
at 49 8,
Manila
34%;
against
1-16,
to be nearer $255,000,000, which was bought between at 33 8@34
41%;
against
41%,
at
Singapore
49%;
Sept. 20, following the advance of the Japanese against
and
Calcutta
at
25%,
against
26.00,
at
Bombay
army in Manchuria, and mid-October. The Tokyo
25%.
against
26.00,
dispatches state that gold has been shipped to the
United States to cover the $167,000,000, but now
The following table indicates the amount of bullion
$88,000,000 more remains to be met. The Yokoin
covered
is
the principal European banks:
understood,
is
in
it
hama Specie Bank,
Japan
of
Bank
the
by
given
guarantees
Dec. 25 1930,
case of loss by
Dee. 241931.
Total.
Biker.
Gold.
and the Government is now considering what may Banks of- Gold. I Mier.
Total.
On
losses.
account
eventual
£
1
any
£
cover
to
done
£
be
£
I
£
I151,316.227
£cl 1428.267.680
121,353,268151,316.2271
England - 121,353,268,
of
appreciation
the
and
prices
80
silver
544,509,570426,267.6
better
d
the
544,509,570
of
France a_
994.600 100.689.550
Germanyb 43,611,150c 994,600 44,605,750 99,694,950
89,875.000 20,828,000110,703,000 97.494,000 28,107,000125,601.000
the price of gold in the London market, India con- Spain
I 57.243,000
57.243,000
60,848,000
60,848,000
Italy
75,583.000 2,327,000 77,910,000 35,516.000, 2,054,000 37,570.000
tinues to ship large quantities of gold to London. Netherl'ds
37,072,000
Nat. Beig25.620,000
60,964,000 2.5.620.000
60.954.000
The Indians regard gold as "treasure" and not as Switzerrd.
13,401.000
11,433.000 13,401.000
Sweden___ 11,433,000
9.560.000
9.560.000
8,015,000
_ 8,015,000
money. For generations India has been the world's Denmark
8,136,000
6,559,000 8.136,000,
Norway... 6,559.000,
greatest hoarder of gold and year by year an im- Tot. wk.1095803 9881 24,149,600 1119953 588961,320.1157j 31,155,600992.476,457
857, 31.157.600990,370,457
portant part of the world's production has been taken Prey. week 1097327728, 24,322,800 1121650 328959,212,
Bank of France ea reported in the new form
the
of
holdings
gold
the
are
These
a
availbe
to
by Indian buyers and thus has ceased
Germany are exclusive of gold held
of statement. b Gold holdings of the Bank of
the present year is £6,497.550. c As of Oct. 7 1924.
able as a currency medium. In the same way that abroad, the amount of which
Is now reported at only a trifling sum.
stocks and bonds have been selling in American and d Silver
European markets for some time under "stress" to
Another Labor Government Rejected-The
meet current cash or income requirements so the
Australian General Election. •
natives of India whose investments are in "treasure"
The defeat of the Scullin Labor Government in
are now selling gold for rupees. Merchants are
in the general election on Dec.19 marks the
Australia
scouring the country and offering attractive rupee
of a political regime which for somewhat
overthrow
prices for gold ornaments of the natives which are
two years has been governing the Austramelted down into bars and shipped to London. The more than
h on principles akin to those of
movement seems only to be at its beginning and will lian Commonwealt
in Great Britain. The
Government
Labor
surely last so long as gold is at a premium. Up to the recent
power in October
into
came
Government
Scullin
the end of November £12,000,000 has been shipped,
coalition
Government of
the
to
succession
in
1929,
and it is known that over £6,000,000 is on the water.
by Stanley
beaded
party
Country
and
Nationalists
The movement is helpful to the Indian Government
coalition
Government
the
of
defeat
The
Bruce.
M.
which is enabled to obtain large sterling balances
himself, the leader of the
required to meet interest and other payments. It was emphatic, Mr. Bruce
Nationalists, four members of his Cabinet, and thirFOREIGN EXCHANGE RATES CERTIFIED BY FEDERAL RESERVE
teen other members of the party failing of re-election..
BANKS TO TREASURY UNDER TARIFF ACT OF 1922,
DEC. 19 TO DEC. 25 1931. INCLUSIVE.
The membership of the House of Representatives reNoon Buying Bate for Cable Transfers tn New York.
turned in 1929 comprised 46 Laborites, 14 NationalValue is United States Money.
Country and Monetary
Mt.
ists, 10 Country party and 5 Independents. Complete
Dec. 19. Dec. 21. Dec. 22. Dec. 23. Dee. 24. Dec. 25.
returns of the current election were not available
3
$
$
$
$
$
EUROPE139435 .139535 .139464 .139192 .139421
Austria,sehilling
when this article was written, the counting of votes
139042 .139178 .139228 .139228 .139205
Belgium, belga
007150 .007150 .007160 .007150 .007150
Bulgaria, ley
under a system of compulsory voting and proporCsechoelovakia, krone .029629 .029628 .029628 .029625 .029628
187760 .186700 .187670 .188577 .188487
Denmark, krone
tional representation being a slow process, but inEngland, pound
3 396728 3.890812 3.400238 3.420535 3.435416
sterling
complete returns on Tuesday gave the United Aus.015612
.015766
016431
.016350
.015900
markka
Finland,
039348 .039343 .039338 .039305 .039267
France, franc
tralia, formerly the Nationalist, party 38 seats, the
Germany. relchsmark .236995 .236895 .237200 .237557 .237450
.012883 .012872 .012877 .012889 .012888
Greece, drachma
Country party 16, Moderate Labor 14, Left Wing
401965 .402285 .402280 .401577 .401205
Holland, guilder
174616 .174586 .174550 .174620 .174383
Hungary. Deng°
050860 .050946 050991 .050951 .050889
Labor 5 and Independents 2, a total of 75. A foreItaly. lira
186294 .185427 .186535 .187555 .187437
Norway. krone
.111856
.111856
.111868
.112012
111792
cast of the composition of the new Senate, 18 of
Poland, zloty
031500 .031500 .031500 .031700 .032175
Portugal, mend()
005956 .005948 .005951 .005954 .005948
Rumania,leu
whose members, or one-half the total membership,
084670 .084677 .084620 .084635 .084590
Spain. peseta
188868 .188322 .188888 .190033 .190325 HOLTSweden, krona
up for election, gave the United and Country
came
DAY
Switzerland, franc-. .195077 .195070 .195230 .195160 .195205
Jugoslavia. dinar_--- .017808 .017794 .017797 .017783 .017803
27 seats, Moderate Labor 7 and Left Wing
parties
ASIAChinaIn each House, in other words, the new
2.
Labor
Chefoc tael
.351250 .350833 .346666 .348333 .349375
Hankow tael
.340312 .340937 .335937 .337812 339843
Country coalition will have a majority
and
United
Shanghai tael
336785 .336071 .330714 .332500 .335078
Tientsin tael
352916 .352500 .348333 .350000 .351041
of about two to one over the combined opposition.
Hong Kong dollar_.. .253392 .252500 .250357 .251964 .252031
Mexican dollar__ .241875 .241875 .238750 .239687 .240625
State and personal factors count heavily, and to
Tientsin or Peiyang
dollar
247500 .248666 .243333 .244583 .245833
outsiders somewhat confusedly, in Australian poliYuan dollar
244166 .243333 .240000 .241250 .242500
.254583 .254791 .255416 .257500 .258208
India. rupee
tics, with the result that exceptional interest always
417031 .409062 .388750 .401093 .400166
Japan, yen
Singapore (8.13.) dollar .391250 .393125 .391250 .395000 .395000
attaches to the fate of individual candidates. Mr.
NORTH AMER.R09191 .805588 .808566 .819044 .818750
Canada, dollar
999250 .999250 .999250 .999250 .999250
who was en route to Australia from England
Bruce,
Cuba, peso
melte°. peso (silver) _ .3923.50 .393733 .398366 .400000 .399466
Newfoundland, dollar .807500 .803000 .805750 .817000 .818250
time of the election, was triumphantly rethe
at
SOUTH AMER.Argentina. peso (gold) .585594 .585757 .585332 .584905 .585544
and it was reported on Thursday that he
turned,
.062018 .062081 .062081 .062021 .061950
Brasil. milrela
120750 .120750 .120400 .120500 .120500
Chile. peso
given an honorary post in the new Govbe
might
.446000 .446000 .446000 .447686 .447666
Uruguay, peso
965700 .965700 .965700 .985700 .965700
Colombia. peso
ernment. Dr. Earle Page, leader of the Country
4210
FINANCIAL CHRONICLE
[vol.. 133.
or farmers' party, also came back with a large ma- could accomplish for general happines
s and prosjority, as did John Latham,leader of the former Na- perity. Any one who recalls the severe
financial
tionalist party. On the other hand E. G. Theodore, strain to which the Commonwealth was
subjected as
Commonwealth Treasurer in the Scullin Government the world-wide business depression develope
d, and
and a conspicuous and disturbing figure in Aus- the grave financial crisis from which Great
Britain
tralian politics for the past two years, was defeated had to assist in extricating New South Wales
and
by one of the candidates supported by J. T. Lang, the Federal Government only
last summer, will realPremier of New South Wales and leader of the Left ize how unsubstantial those accomplishment
s were.
Wing Laborites, and the Minister of Agriculture and When, with the financial ship on the rocks, the SculAttorney General in the Scullin Government were lin Government reluctantly accepted a program
of
also rejected. The political overturn, which Mr. sweeping economy and financial readjustment,
it
Scullin declared was "a staggering blow," appears was too late to rehabilitate the Labor regime,
and
to have been very marked in New South Wales, Vic- the country has now turned to
more trustworthy
toria and Tasmania, where a correspondent of the leadership for guidance in its economi difficult
c
ies.
New York "Times" reports that it was "equally deMr. Lyon fought his electoral campaign in part on
cisive both in industrial and in agricultural areas," the issue of making Australia once
more an attracwhile the result in South Australia is described as tive field for foreign investment, and
he is quoted as
the worst defeat that Australian labor has ever saying that the new administration
will conduct its
experienced.
financial affairs "in a manner to sustain complete
The nature of the change that has taken place, confidence in the financial stability and
honor of the
however, is best illustrated by the career of Joseph Commonwealth." Having stoutly opposed
inflation
A. Lyon, who is slated to head the new Government. a year ago, when the conversion of
the debt was under
Mr.Lyon is a Laborite who began his political career discussion, it is to be hoped that
his opposition at
in Tasmania, where he was Treasurer and Minister that point may continue. Apparen
tly he is a moderof Education from 1914 to 1916 and later Premier ate protectionist, for Empire purposes at least,
for
and Treasurer from 1923 to 1928. In 1929 he was he is reported as welcoming the new British
tariff
elected to the Commonwealth House, was appointed duties as opening the way to "a great expansio
n of
Postmaster General and Minister of Public Works reciprocal tariff agreements between the two counand Railways in the Scullin Cabinet, and early in tries." It is probably on the strength
of these reports
1930 succeeded Mr. Theodore as Treasurer. Always that London dispatches indicate
an expectation that
moderate in his party views, he came into sharp con- Australia will play a prominent partin the
forthcomflict with the radicals of the Labor party over the ing Imperial trade conference at Ottawa.
If the
conversion of a loan of some 08,000,000 which was Ottawa conference accomplishes what many
of those
shortly to fall due, an operation which he succeeded who are interested in it hope for, we may
expect to
in carrying through in the face of a Labor demand see Great Britain and the dominio
ns bound together
that the matter be postponed for a year. The breach in an Imperial tariff union, applying
both the prinwith the Labor following was never healed, and ciple of protection and that
of Imperial preference
when, upon the return of Premier Scullin from the to the encouragement of industry
and trade within
Imperial Conference at London,the Premier brought the Empire. The scheme has
many and serious diffiback into the Cabinet as Treasurer the former in- culties to face, as past experien
ce shows, and it cercumbent, Theodore, who had been under a cloud be- tainly bodes ill for the general
abatement of tariff
cause of charges of graft made by the Queensland duties which international
trade so greatly needs,
Government, Mr. Lyon resigned. It was with his but the experiment is
nevertheless one which the
leadership that the Nationalist and Country parties, members of the British
Commonwealth of Nations
the former now known as the United Australia party, seem determined to try.
agreed to offer joint opposition to Labor, and to this
A special significance attaches to the Australian
opposition the Scullin Government owes its defeat. election because of the added
impetus which it gives
The Australian Commonwealth has thus dupli- to the movement toward political
and economic concated in some of its features the radical readjustment servatism, under democratic forms,
which has lately
of its Government that Great Britain has recently been so marked in Great Britain and
which finds
undergone. In each case a Labor party, grounded in increasing support among thoughtful
people in this
the support of organized labor and professing prin- country. When the circumstances which
brought
ciples essentially socialistic, has been defeated be- Ramsay MacDonald to his present position in Engcause of its inability to govern the country without land and marked Mr. Lyon for Premier of Australi
a
inviting financial disaster, and a coalition Govern- are reviewed, it is clear that the social philosop
hy
ment dominated by conservative elements has taken which affects to see in the State a reservoir of
units place. In each case the extreme radicals of the limited financial resources, to be drawn
upon withLabor movement, although a minority among the out restraint for the benefit of the many and
replenvoters as well as in the national legislature, have ished by drastic levies upon the possessions
of the
been a disturbing and even disruptive influence, few, has no longer the appeal that it once
had. The
either forcing or paralyzing the Government's hand notion that the State was bound to do as
much as
and wielding a power in legislation and policy out possible of what individual effort had
formerly done,
of proportion to their numerical strength. The soil and step in whenever and wherever
the individual
was prepared for the policies which radical Labor found need for special wisdom,
experience or exerfollowed, for even before the advent of the Scullin tion and take the task off his hands, has
become a
Government Australia had been widely known as a good deal discredited. We are witnessing
a conservafield in which experiments of a socialistic nature tive reaction, away from weak depende
nce upon govwere being tried on an extended scale, and the coun- ernment aid and in opposition to unasked
-for govtry was often pointed to, along with New Zealand, ernment interference, and it is
in that direction that
as an example of what a "socially minded" State the hope of recovery lies.
Dm. 26 1931.]
FINANCIAL CHRONICLE
4211
Be this as it may, this reviewer, considering the
current book, finds that the continuing purpose of
Wells "is to break up the hard crust of belief that
present economic arrangements are final and necessary, that they arise from an unchangeable 'human
nature,' that they have always existed in essence and
will continue to exist without important alteration.
They are not, in any proper sense, a 'system' logically constructed for the utmost degree of workableness, or decreed by an inexorable fate. Rather, they
are the confused outgrowth of a long development;
they represent the midcourse of a process of groping
from ignorance and primitive desire toward understanding and social coherence. They contain at once
many obsolete survivals from earlier types of culture
and many unfulfilled promises of something better.
The fact that they do not fit into any neat scheme,
that they do not comprise a really organic whole, is
the very fact which makes it difficult for anyone—
even Mr. Wells—to write a lucid and systematic
description of modern economic society."
The review continues: "In breaking up the classical conception of'unchangeable human nature in the
shape of an 'economic man' whose competitive
search for gain is supposed to be the essential basis
of our economic order, Mr. Wells has made an interesting and new classification. He derives from Jung
the concept of the 'persona' to indicate 'a man's
guiding and satisfying idea of himself.'" Mr. Wells
Superman and Superstate.
believes that what a man thinks he is and what he
An illuminating review of H. G. Wells's latest thinks his role is determine his conduct. "From the
book, "The Work, Wealth and Happiness of Man- very beginnings of the human adventure and
kind," by George Soule, in the New York "Times" throughout the whole world to-day every human
Book Review, Nov. 22, casts much light upon the being is steering a cherished persona through the
"purpose" of this most prolific writer. (Those of allurements, buffetings and frustrations of life."
us without extensive leisure must rely on the re- . . . "Three main types of persona are identified
views; we cannot read the books.) Mr. Soule finds by Mr. Wells—the peasant, the nomad, and the eduWells "guided by certain assumptions which— cated man. Derivatives of these types are found
though he might deny it—serve the function of throughout modern society. The peasant type still
articles of faith. The war proved that the world is prevails, he believes—cautious, shrewd, mediocre,
in abysmal confusion. The depression proves it ruled by social taboos and superstitions. He is the
again. The faith which Mr. Wells has in the possi- average worker, the small business man, the tradibility of perfecting human society leads him to tionalist. The nomad type is adventurous, predagrapple with the nature of this confusion. Proxi- tory, speculative—he has an acquisitiveness which
mately, it gises, he believes, from institutions like is often confused by the Marxian with the acquisiexcessive nationalism in political and economic tiveness of the peasant, but which is really of a difaffairs, from the mismanagement of economic forces ferent kind. The educated persona, rooted in the
in the interest of particular groups and ancient priestly tradition, is essentially more disinterested,
habits." . . . "His leading articles of faith is moved more by general and social ideas. It has
appear to be: first, that it is possible to better the flowered into the professional man, the teacher, the
course of human affairs; second, the way to do so artist." . . . Then: "Can we proceed with the
is to educate large numbers of people, to improve task of thought and education with the hope that it"
their ways of thinking, and furnish them with a new (the basic idea) "will in the end bring the necessary
stock of concepts."
transformations?"
Hence what appears to be a trilogy by this "leadWhat is the average man, the average people, to
ing pamphleteer of his generation"—"The Outline do with these tremendous generalizations? How is
of History," "The Science of Life," and now "The the foundation to be builded? Can we suppose that
Work, Wealth and Happiness of Mankind." Each education, however long continued, can exorcise from
of these "pamphlets" is an encyclopedia, the last, in inevitable society of some kind this person (pertwo volumes, containing 895 pages. The reviewer sona)? Our more common word is the "individual,"
thinks that much of the knowledge contained in these of whatever class or derivative. Can he be ever
books might readily have been compiled by another, taught to pursue'something not in him, some cause,
less powerful in mind, than Wells, and, of course, desire, idea, ideal, if not consonant with his thought
lacking in his skill in presentation and arrangement at least not in antagonism to his natural well-being?
and his force as a writer. In addition, Mr. Wells Mr. Wells, as is well known, constantly dreams of a
is a theorist, a devotee of his own principles, lean- better future. Naturally, he conceives a possible pering far toward socialism. He may be,also, a colossal fection, a Utopian condition, a co-operative enegotist in that he essays the task of looking over the deavor freed from our vulgar concept of individualwhole realm of man's progress, thought and present ism. Call it"human nature," call it what you please,
condition.
can an emasculated individual, freed from the ego,
One immediate effect, of course, has been to produce some strange and contradictory political situations. A former Labor Premier whom his own party
has repudiated heads a Government in'Great Britain
in which Conservatives are in a majority, and a former Labor leader who has repudiated his party in Australia heads a coalition Government there which
is also predominantly conservative. It would seem
entirely natural to expect that out of these anomalous situations there would eventually emerge new
party formations, with party tenets restated and
with organizations better fitted to express the people's will. Already it is being rumored in England
that something akin to what on the Continent is
known as a Centre party, representing the great middle group of voters who are as much opposed to extreme conservatism as they are to extreme Labor
policies, may be taking shape quietly in Mr. MacDonald's mind, while the new United-Country coalition in Australia has essentially this moderate character. Whatever formal changes may be in store,
however, the manifest trend is away from visionary
and wasteful experiments which weaken the courage
and ambition of the individual citizen and leave him
burdened with debt,and back to saner and less costly
practices. Every strengthening of such a trend is to
be welcomed everywhere.
4212
FINANCIAL CHRONICLE
[Vol,. 133.
by any process of educative evolution, be made fit poverish future generations. Why talk of these
to sustain the imagined perfect social compact? grandiose dreams of plenty and peace, while unwillThereseems to us always a contradiction in this ideal ing to do the small things near at hand to start us
of socialism—a State without individuals, and an on the right road? In grasping for the magnificent
individual without a State. How induce this trans- we lose our hold on the plain everyday betterment
formation without a preconceived theorem? How easily attainable.
bring it about without destroying the liberty of
Panaceas for all our ills we have in abundance.
man? All the conflicts of history do not furnish In the long run they are of no avail. The desperate
a way!'
"confusion" continues and increases. If it were not
"Confusion" there is, wide and deep. Nationalism for the gainful occupations of men and women, by
there is, braggart and defiant—often descending into which they live; if it were not for their native comarrant chauvinism. Race there is, contradictory in mon sense, independent of economics, politics, procolor, language, characteristics, and in biologic dif- fessionalism, and governments that assume to hold
ferences. Peoples there are, saturated in traditions, imperious powers, we should be drowned in the quickindurated with religions, proud of achievements and sands of our own efforts. What would the world be
possessions. States there are, with resources for- if it was out of debt? As it is, we pile one loan or
ever unequal, with boundaries and territories defined bond issue on another, and because they only come
by militarism for the most part, incommensurate close to us in taxes we tolerate their combined imwith populations and unlike in autonomies and mensity, and careless of tomorrow (the next two or
rulers. Laws there are, woven of opposing con- three generations) invent, make and buy the glitterditions, the outgrowth of history, race, organization ing baubles of pleasure we fancy is Progress. When,
and reason. What mysterious and masterful alembic finally, the shoe pinches we squeal; we blame the
can transfuse these into a harmonious, even a peace- laws we make in our own relief; we pick out a scapeful, whole? And where, on what pinnacle above the goat in our politics on which to vent our spleen;
in
moiling and boiling "confusion," will the trans- order to stave off revolution or at least riot, pay out
former, armed with his wand of the new ideal, stand charities by dole or otherwise, and on the whole live
to perform his gigantic work? Can mere "educa- as though the hereafter, Utopian or other, could
tion" proceed along a road that has no signboards take care of itself.
and no map? It is easy to blazon a picture on the
Less of dream and more of duty; less of weasel
walls of time; it is hard to realize it!
schemes for immediate relief and restoration and
There are two experiments going on now, Fascism more of rest, recompense, and restitution
, to our feland Sovietism. Are they not tyrannies? Is the lows in the trenches of life; fewer vast schemes
of
future man to be fitted to the mould made for him a redeemed world and more efforts to
harmonize the
by the State or is he to remain free to mould the inescapable efforts to get food, clothing and
shelter,
State? What,in this future miracle of justice, joy, would give us a beginning point in our hunger
march
and jubilance, will take the place of this "persona," toward Perfection. But we are unwilling
to live in
who, through "life,'liberty and the pursuit of happi- the open spaces of the country
while we can crowd
ness," follows his own inner concept, follows the into tenements in the city.
We are unwilling to
"star" of his own creation? All these tremendous build a civilization slowly,
safely, sanely, while we
ideas are but vague shadows on an Unknown,no man can artificially rush the building
to give employment
can fathom. No wonder Mr. Wells is pessimistic to the many out of work brought on by
our own specabout the condition and fate of man. We cannot, ulative orgies; we are unwilling
to change back to
as a start in this gigantic processional toward per- the normal growth that was the expansion
of health
fection, eliminate war. We are trying, but as we try and the vigor of exercise. If there is
no Superman
we are conscious of an active, aggressive sentiment to lead us to the Superstate what is left to
any people
that draws us back. As we contemplate a conven- but to live plainly in the present, truth in the heart
tion for disarmament, an incipient conflict breaks and Heaven overhead?
out in one of the oldest quarters of the world. EduWhat the intellect creates the heart feels, and the
cation in social and civic reform, we do not need. conscience approves, that can come to the wide world
Every people on earth, as a collection of free indi- in the evolution of time and toil. We well know,for
viduals (at least in thought), is in favor of doing the most part, what is wrong—but it cannot be cured
away with war, in favor of an arbitral settlement of in a decade, or a century. All peoples, all the time,
international disputes. Alas, governments are not. are in too much of a hurry. Wise men, saturated
Governments, proclaiming defense and protection, with knowledge, can show us our faults—but their
are impoverishing their peoples in "preparedness" remedies, though plausible and sincere, though enfor war.
tertaining if impossible, are not enough. All the
If we cannot combine for this one step, in what historical and philosophical tomes on all the shelves,
way can we begin the educational program? We are not enough. Each generation by its mode of livride the prancing horses of Dream—whitheraway we ing must contribute something to the fiber and
sinew
know not. Yonder, somewhere, lies the Golden Age of that Golden Age wherein Perfection
and Prosof Tranquility! In our strife to get there we lose perity will grow from more to more.
As men pass off
our direction and travel in circles, travel from "pros- the stage,leaving the small accretions
of good behind
perity" to "depression." Just now every people is th ,the Dawn will grow brighter
and brighter!
drooping with despondency. Alas, we cannot begin
our revival with saving and thrift, with frugality
What Reserve Banks Say of Themselves.
and temperance. We would whip ourselves int
THIRD ARTICLE.
ecstasy by the old process of spending and specul
In a preceding article the open market policy of Federal
tion. We have an extremely useful device—cre t. Reserve banks, as reviewed by the banks themselves, has
We have used it immoderately to live beyond our been analyzed. It was then seen that such open market
means, to lay inordinate taxes on the people, to im- operations have been engaged in chiefly with respect to
DEC. 26 1931.]
FINANCIAL CHRONICLE
bankers' acceptances and Government securities; and the
Importance and significance of such transactions have been
emphasized. The importance attaching to open market operations of the sort that have been common in recent years is
obvious, especially when account is taken of the speculative
relationships of the business; but no full judgment of the
real meaning of the transactions can be formed until there
is fairly full understanding of the conditions under which
both acceptances and Government securities are prepared,
and are offered for sale; and of the tendencies to which
such transactions are subject. This article, accordingly, is
intended to present the chief facts regarding acceptance
operations.
4213
were in progress, issued letter after letter denouncing the
"revolving credits," the "finance bills," the misinterpretations of the term "staple commodities" that were permitted
and other aspects of the trade in acceptances that had begun
to develop. All, however, was in vain, and finally the Board,
growing tired of the warfare, and influenced (no doubt) by
sundry of the new members who came into its membership
after the election of President Harding, and who had hardly
any knowledge of banking whatever, finally threw down
the reins. In 1922 it granted to the Reserve banks what
amounted to the power to make their own rules and regulations for eligibility. Deterioration was rapid after that;
and has culminated in the German experience of the past
summer. Of this more will be said later on.
ACCEPTANCE OPERATIONS, ORIGINALLY INTENDED TO
COVER MERELY OPERATIONS GROWING OUT OF FOR
SUBCOMMITTEE INSTITUTES INQUIRY BOTH INTO
EIGN TRADE, BUT CHANGED IN 1917 TO INCLUDE SENATE
METHODS OF MAKING ACCEPTANCES AND INTO
DOMESTIC ACCEPTANCES.
METHODS OF DEALING IN THEM.
And first, in this case as in that of open market operations in general, some background discussion is essential.
The original Federal Reserve Act was evidently framed with
great care, in so far as it had reference to the acceptance
business, and resulted in permitting only the making and
discounting (as well as purchase) of bankers' acceptances
that grew out of "foreign trade." A review of the history
of the situation leaves little doubt in the mind of any that
this provision had originally reference to the foreign trade
of the United States—that is, the foreign trade occurring
between the United States and foreign countries.
The measure had hardly been placed upon the statute
books, however, when steps were taken to secure its modification. What was desired was to have it, first of all, extended. The first step in this direction was taken in 1917,
when Congress was induced to include in the legislation an
amendment providing for domestic bankers' acceptances. It
had earlier raised the amount permitted to be issued by any
bank to the full equivalent of the bank's capital. Also, under
the guise of financing war trade,permission was given for the
creation of another 50% of any accepting bank's capital in the
form of so-called "dollar exchange," it being the intention
evidently that such dollar exchange should be short finance
bills used to carry on the trade of countries that had seasonal exports, during the off seasons, when their shipments
are very small. Various later efforts were made still farther
to enlarge and broaden the power so conferred, but they
were not successful. Both the Reserve Board and Congress
had, at length, taken the alarm, and were frieghtened at the
abuses that had begun to develop almost upon the adoption
of the new acceptance provisions.
In taking up the acceptance question afresh, the Senate
subcommittee on banking has apparently recognized the
necessity for an inquiry both into methods of making acceptances and into methods of buying and dealing in the paper—
two different things, but both Important, covering so broad
a field that only a very general glance at the high points
could be taken. However, the subcommittee has covered a
large tract of acceptance practice in most lines, in a special
questionnaire on the subject whose chief results are worthy
of reproduction. The first question of the series has reference to "the factors making for an increased concentration
of the acceptance business in the hands of a few institutions
located in New York, Boston, Chicago and San Francisco.
Among the reasons cited by the Federal Reserve banks were
the concentration of banking resources in the cities named;
their importance as domestic and foreign trade centers; their
importance as settlement points; the volume of surplus funds
concentrated in those centers and the prevailing low rates
of interest; the fact that banking institutions located therein
are better known and that their acceptances consequently
command prime rates in the market."
BROADENING OF PROVISIONS BY ADMINISTRATIVE
RULING.
There was even more dangerous progress in connection
with administrative rulings. One of the first things the
Reserve Board did was to permit the interpretation of the
words "foreign trade" so as to include any foreign trade
carried on by American citizens. Thus packing house interests were permitted to get financing at Reserve banks for
the carrying of the trade between Argentina and Europe!
Then, later, foreign trade was Interpreted to mean any foreign trade by whomever carried on, so that the resources of
Reserve banks could be used (for instance) to finance foreign trade between Germany and Poland. The very broadest
Interpretation was eventually given to the words foreign
trade; and, at the last the interpretations thus came to
border upon the ridiculous. Goods supposedly on the way
to be shipped, but likely to sojourn a long time in a warehouse at some intermediate point were viewed as eligible
as a basis for acceptance financing; and many other ways of
making the acceptance into pure finance bill were turned up.
Space will not permit the review, even in outline, of the
gross misuses that speedily crept into the acceptance business. The Reserve Board itself, aghast at the practices that
ACCEPTANCES NOT WIDELY HELD,IN ADDITION TO BUSINESS HAVING FALLEN INTO HANDS OF A SMALL
NUMBER OF BANKS WHOSE INTERESTS ARE PREDOMINANTLY FINANCIAL.
Whatever weight be assigned to these reasons for concentration as thus summarized by the Committee, the fact is, at
all events, admitted that the acceptance business has tended
to fall solely tut° the hands of a small number of banks
whose interests are predominantly financial, and which are
located in a very few places. Not over 250 banks have ever
been able to make acceptances due to increasing obstacles in
marketing, and a much smaller number—about 40—actually
and habitually makes the bulk (86%) of them. The country
banks have neither part nor lot in the business, and the
whole past structure of assertion of good results to country
banks arising from the acceptance business thus falls to
the ground. Practice has tended more and more to limit
the possibility that a small bank may get into the business.
Neither is it true that, as many had expected, the acceptances now made are widely bought by and help country
and small banks. There have been many occasions in recent
years when almost the whole body of acceptances was in
the hands of the Reserve banks themselves, with the aid of
foreign bankers who had been encouraged to place their
funds in that form of investment—usually with the endorsement of some of the Federal Reserve banks—which
thus
became responsible for the entire experiment. At other
times it has been possible, when rates paid offered a
profit,
to distribute the acceptances somewhat more broadly
among
the portfolios of member banks. During the past
autu
accepting banks held only 40% of the total, and
this was
an unusual amount. As to all this the Committee
has developed the major facts as follows:
4214
FINANCIAL CHRONICLE
[Vol,. 133.
Boston . . . discount markets arise in the larger centers because for Stock Exchange loans which would be widely held in
the bills originate there and funds for temporary investments tend to
concentrate there. Before the establishment of the Federal Reserve bank reserves; the establishment of a widely-diffused open
Act, acceptances were executed in sterling form by several private market which would offer opportunity for trading
in the
banking houses.
Chicago.—Out of $1,571,000,000 of bankers' acceptances out- liquid obligations of local banks; and the educating of the
standing on Dec. 1 1930, $1,352,000,000, or about 86% of the acceptances of the first 40 accepting banks were of banks located in New York, Institutions to the notion of self-liquidation and the holding
Boston, Chicago, and San Francisco, with the exception of one bank of liquid paper have failed. It is fair, however, to inquire
at Buffalo, one at Cleveland, and one at Philadelphia. These four
cities are the principal financial centers of the country, Boston, Chicago, whether there has been some substitute purpose to be gained
and San Francisco being subsidiary to New York and each of the three
serving its own particular territory; Boston, the New England States; in the place of those that were, in imitation of the experiChicago, the Central and Western States; and San Francisco, the Pacific ence of other countries, originally sought. What could this
coast territory.
Cleveland.—(a) In this district there appears to be a lack of interest be? An answer might be found in the open market practice
in the acceptance privilege granted under section 13 of the Federal developed
by the Reserve banks whereby bankers' acceptReserve Act except on the part of a few of our larger member banks.
(b) A preference on the part of many banks to loan their funds rather ances were made to serve as one of the two chief media by
than their credit, even on transactions adaptable to acceptance financwhose use the Reserve institutions have placed funds in the
ing, because of the better rate usually obtainable in loans.
(c) With only a few banks in this district availing themselves of the market (through purchase),
or let them out (through sale).
acceptance privilege and little interest on the part of our banks (with
few exceptions) in purchasing bills, the volume created as well as the But in order to have even this object satisfactorily complied
demand for purchases is not sufficient to warrant dealers in maintainwith, it is of course absolutely essential that the acceptance,
ing offices or carrying portfolios in this district.
Dallas.—The large capital structures of the banks in the cities men- if not to be self-liquidating, should be at all events unquestioned provide for a sufficient volume of outstanding acceptances to
make the commission revenue worth while. Moreover, the institutions tionably payable or collectible, at maturity. This they have
in those cities are better known and therefore acceptance credits are
not been.
sought from them, particularly where credits are desired by foreign
banks on behalf of their customers, . . . it is a fact that the
number of banks which have become familiar and conversant with MORE AND MORE NEEDFUL TO RENEW ACCEPTANCES,
acceptance practices has not yet reached sufficient proportions to create
THEREBY DESTROYING THEIR LIQUIDITY.
any large demand for purchasers outside of the centers mentioned.
More and more it has been needful to renew acceptances,
This results in a greater dependence, for the present at least, and probably for some time to come, upon the Federal Reserve banks to absorb or to resort to "revolving credits,"
until at last these pracacceptances that are put out to the extent that they are not absorbed
by the purchases made by foreign banks. This is why Federal Reserve tices have culminated in the complete breakdown of liquidity
banks have adopted the policy of buying only indorsed bills, so as to
necessitate the negotiation of a bill at least once in the market before In one large branch of the acceptance market—that originatit is purchased by a Federal Reserve bank. . . .
ing in German transactions. The open collapse of Germany
Kansas City.—So far as this district is concerned, commercial banks
have not been interested in the creation of an acceptance market and was six months later than the Senate subcommittee's inquiry,
the amount of acceptances originating in the district is very small, for but
the facts developed in the inquiry bring out the major
the reason that our commercial banks have preferred to make direct
loans at current rates rather than create acceptances on which they causes leading up to the collapse, and these may
be taken
would profit only to the extent of the acceptance commission.
Minneapolis.—The following factors were important in concentrating as typical of a whole range of facts reflecting the nature of
the acceptance business of the country in New York, Boston, Chicago, the
entire acceptance situation as developed under Federal
and San Francisco:
(a) The low rates which bankers' acceptances have yielded, and which Reserve supervision. The outstanding feature of that situamake them undesirable as investments for banks in the interior where
lending rates are higher and where it is possible to secure almost as tion shown by recent statistics has of course been the rapid
large an income from interest on a correspondent bank balance as from growth of finance
bills made to carry goods in warehouse
investment in the bankers' acceptance.
(b) The prevailing use of other types of finance for domestic business, and to furnish loans to foreign countries at long maturity.
such as open credit, commercial paper, and direct bank loans.
(c) The concentration of import and export business in the cities On these points the subcommittee has made due inquiry and
named above.
has received answers some of which ,are briefly summarized
(d) The lack of sufficient volume of open market types of loans in
as follows:
interior cities to warrant the growth of discount markets.
New York.—Important credit business naturally flows to the more
Boaton.—The increase in dollar exchange bills during 1929 was probably
Important financial centers where are located the largest, strongest,
and best known financial institutions. Most of the import and export a reflection of the exceedingly tight credit conditions abroad.
trade of the country naturally flows through its principal ports and its
Chicago.—With regard to the large increase in the volume of acfinancing is logically undertaken by the large institutions located in ceptances drawn for foreign storage and shipment between foreign
those cities. Discount markets can exist only when associated with and countries, it appears that a substantial amount of this business originates
In Germany and other central European countries and that it
having access to money markets. . . .
results,
Philadelphia.—The value of an acceptance depends upon its salability, at least to some extent, from a continued shortage of capital and is not
hence it must be accepted by an institution of the highest standing. likely to be reduced until long-term loans can be floated in this country
Such institutions are located in the large cities, the majority, of course, or in London or Paris. If long-term capital were readily available,
being in New York. Transactions out of which acceptances originate, it is the belief that the amount of this class of bills would be reduced to
generally, are undertaken or finally completed by parties in the larger a considerable extent. We are unable to determine the cause of the
cities, or by those having financial connections in the large cities. The increased volume of domestic storage bills in 1927 but are of the opinion
making of acceptances apparently has not proved attractive to many of that the still greater increased volume in 1929 was caused primarily
the large banks,hence the comparatively few banks that make bills. ... by the surplus supply of commodities which was much greater than the
Richmand.—In our opinion, the chief factors are:(1) That the dealers, demand. We are unable to determine the cause of the increase in the
or at least the large dealers, in acceptances are located in the money volume of export bills in 1927 and 1928. The increase in dollar exchange
centers; (2) the accumulation of funds and the consequent slightly lower bills in 1920 was principally in bills executed for South American counmoney rates prevailing in such centers have further tended to concen- tries, caused by a surplus of commodities in those countries which they
trate the acceptance business there; (3) the fact that in the interior (in were unable to market readily and also due to the unfavorable exchange
this district, for example) the yield of acceptances is too low to attract situation which created a demand for New York funds. With regard
banking institutions; (4) the tendency among dealers to encourage mak- to the volume of import bills which has failed to increase as rapidly as
ing acceptances payable in their centers; (5) a greater diversity in the the export bills, we are unable to determine the reason. With regard
character of acceptances available in money centers, which naturally to failure of acceptances arising from domestic shipments to increase
materially, this class of business is done largely through counter credits
prevails.
St. Louis.—In the early days we encouraged several dealers who tried and is less suitable for acceptance credits. There does not seem to be
much
need for the development of the acceptance business along this
to build up an acceptance business, but they soon gave it up as the
banks in the Eighth District displayed very little interest in the accept- line, as there is always plenty of counter credit available for this purpose.
ance business. In the infrequent instances where banks or others were
Cleveland.—(a) More favorable rates, increased prestige
inquiring about the market they seemed to prefer to go to New York. credits abroad, and a lack of capital and sufficient bankingof dollar
facilities
San Francisco.—(1) San Francisco being so far removed from a primary in Central Europe to carry on imports of raw materials
and exports
market (New York), by distance as well as by time, makes the creation of finished goods without aid.
of a local market possible and to the direct advantage of acceptors
(b) The increase in domestic storage bills in 1927 over 1926 was
and investors;(2) There is within the San Francisco district an important approximately $81,000,000, and a large part of this
was reported as
investment demand for acceptances and an original source of bills ac- being drawn against cotton awaiting export.
cepted by banks having their names well known in the bill markets;
The increase in 1929 over 1928 was approximately $181,500,000,
(3) Facilities given bill dealers by the Federal Reserve bank to carry largely accounted for by agricultural products,
grain, cotton, Arc.,
bills when accommodation for that purpose is not available at the awaiting export or other market. The increase
reflected a desire to help
local banks.
the process of orderly marketing generally advocated.
The absence of these features makes it unprofitable for local dealers
(c) The increase in the volume of bills covering goods exported from
to operate in those Federal Reserve districts which can be adequately this country in the years mentioned appears
to follow the increase in
served from central points near at hand.
value and volume of goods exported, which in those years were considerably augmented by the increased exportation of automobiles.
ORIGINAL OBJECTS FOR CREATION OF ACCEPTANCES HAVE
(d) The reason for the increase in dollar exchange bills in 1929 over
FAILED OF ATTAINMENT.
1928 appears to be increased merchandise exports. Coupled with this
We are thus warranted, by the testimony of the Reserve was the need of South American countries to provide dollar exchange
to cover their imports, since their exports did not suffice. Curtailment
banks as summarized, in the opinion that the original objects of South American borrowings in this country during that period also
affected the position of their exchanges.
brought forward, when the Reserve Act was framed, for the
(e) Import financing is, of course, subject to changes in the volume
creation of acceptance paper—the affording of a substitute and value of our imports, and our import bills did increase every year
since 1926. The increases between 1926 and 1928 were not great, but
Dne. 26 1931.]
FINANCIAL CHRONICLE
4215
a considerable increase in this class of bills was shown in 1929, reflecting to the general character of the situation, it was already
the heavy sugar importations which took place in the fore part of that
the Chicago Reserve Bank as early as the beginyear and the large imports of silk at fairly high prices which occurred evident to
in the latter part of the year.
ning of this year, what was the origin of the trouble, the
(f) Domestic shipment bills have never been a large factor in total
acceptances created, as will be noted from the following schedule of bank writing as follows:
the amounts of such bills created from 1925 to 1929 inclusive: 1925,
From the information we are able to obtain, we are of the opinion
$25,600,000; 1920, 1128,686,000; 1927, $20,959,000; 1928, $16,197,000; that the lack of capital exports to Central Europe since 1929 has been
1929, $22,830,000.
an important factor in causing the increase of American acceptances
This indicates that other practices prevail,such as shipments against against foreign storage and shipment of goods between foreign countries.
open account, with a cash discount for payment of the account before
maturity, shipment against sight draft with bill of lading attached, NOT FEASIBLE TO REQUIRE ACCEPTING BANKS TO HOLD
or shipment against time draft with bill of lading attached. Both sight
ACCEPTANCES OF OTHER INSTITUTIONS.
drafts and time drafts against bill of lading shipments covering comIt might reasonably be expected, in these circumstances,
modities are readily discounted by banks for their customers.
Dallas.—During the period mentioned the margin of acceptance that the Reserve banks would be disposed to resort to some
ability which the American banks desired to use was large and, due to
a shortage of capital or loanable funds in foreign countries, it was prob- means of bringing the acceptance business back to the wellably easier to arrange commercial credits with New York banks than
of paper only
with banks in the countries from which the business came. The use tried plan of permitting dealings in this type
of acceptances for carrying goods stored in domestic warehouses in 1927 when banks were in the habit of holding such paper for portwas a convenient method of financing the carrying of commodities.
New York.—Dollar acceptance credit for foreign trade which does folio purposes. This also has formed the subject of inquiry
not touch our shores and for the storage of staple goods in foreign couninstitutions..
tries has increased importantly since 1926. The greatest demand for and has elicited negative answers from Reserve
it has come from Central Europe, which since the war has lacked capital The subcommittee asked:
and sufficient banking facilities in Europe to carry on their imports
of raw materials and exports of finished goods without aid from America.
To stimulate an investment demand for acceptances, should the
Also, much business of this sort that was formerly financed in London Reserve banks follow a policy of refusing to purchase acceptances unless
has come to America as the cost of American financing decreased in the accepting institutions hold bills, accepted by other institutions, equal
comparison with the cost in London. While American commissions to a substantial percentage of their own acceptance liabilities?
are somewhat higher, the relative open-market discount rates have,
The banks replied:
during the greater part of the time, been working in favor of America.
The increase in the volume of acceptance credits against staples
Atlanta.—We believe that a Reserve bank policy of refusing to purstored in domestic warehouses in 1927 and 1929 occurred most im- chase acceptances unless the accepting institutions held bills, accepted
portantly during the autumn months of those years and doubtless by other institutions, equal to a substantial percentage of their own
reflected substantial agricultural production during those seasons, for acceptance liabilities would be very impractical of enforcement, and it
which there was no immediate market demand. Commodity prices would tend to reduce the investment demand for bills as well as to reduce
also are reflected in the dollar volume of credit. . . .
the total volume of bills outstanding. Tho banks would hesitate to
Philadelphia.—The increase in acceptances drawn for foreign storage purchase bills which they feared would not be eligible for immediate
and shipment, from 1928 to the present time, has been due in part to disposal to the Reserve banks. A further point to be considered is
a liberalization by the Federal Reserve Board of its ruling in regard the fact that generally the season of the year when a member bank's
to acceptances of this character. An increasing demand throughout acceptance liabilities are heaviest corresponds to the season when its
the world for international short-time financing in the form of accept- supply of funds for investment is lowest. Such a change of Reserve
ances; the spread of interest rates between New York and London; policy would interfere with the mobility of short-term capital from one
a better understanding of bankers' acceptances; the service offered section of the country to another. The method by which the Reserve
. by our accepting banks, plus the stability of the dollar as a medium of banks can most effectively encourage the investment demand for acexchange, were some of the principal factors responsible for the increase ceptances is to stand ready to take eligible bills off the hands of investing
in the acceptances drawn for foreign storage and shipment. A large member banks at any time. . . .
portion of the gain in 1927 in acceptances arising against goods in domestic
Boston.—We do not believe that it would be desirable to adopt a
warehouses was represented by American cotton awaiting shipment, definite policy of refusing to buy acceptances from member banks
the sale of which was temporarily checked owing to heavy stocks on unless the accepting institution holds bills accepted by other institutions
hand in England. . . .
equal to a substantial percentage of their own acceptance liabilities.
San Prancisco.—(a) Reason for rapid increase of foreign storage and
Chicago.—No. This would create an artificial situation in the bill
shipment credits since 1926: (1) Renewed industrial activities in foreign market and in our opinion the market should be free from any such
countries, accompanied by Increase of their external trade; (2) lack of restrictions.
•
working capital abroad induced purchases of American raw materials
Cleveland.—In theory this might appear an effective means of stimuwhich could be financed by American credits; (3) long-term forward lating an investment demand for acceptances, but it would not be so
sales made European manufacturers call for well-advanced purchases of in actual practice since the purpose could be defeated by subterfuge.
raw materials so that sale price can be matched against purchase price
Dallas.—No.
as a means of hedging.
Kansas City.—This would not be practicable.
(b) Reasons for increase of domestic storage credits, 1927 and 1929:
Minneapolis.—No.
(1) Sluggishness in movement of staples; (2) banks generally create bills
New York.—We believe that Reserve banks should not adopt or follow
more freely when they are indebted to Federal Reserve bank to keep a policy of refusing to purchase the acceptances of a given institution
down borrowings; (3) bank borrowers are more inclined to submit to unless the acceptor holds bills accepted by others equal to a substantial
secured (acceptance) credits when loan rates are above normal range per cent of their own acceptance liabilities. Such a policy, if effective,
and business is in a recession.
would require the immobilization of a portion of the assets of each
(e) Reason for increase of export bills during 1927 and 1928:(1) Owing accepting bank or banker and the character of the asset to be immoto bill rates in United States being more favorable than in London, bilized, i.e., bankers' acceptances, would be the class of investment
exporters used their foreign documentary drafts as a basis of acceptance which is and should be, we believe, most mobile. . . .
credits instead of disposing of their bills to banks as foreign-exchange
Philadelphia.—Due to the artificial bill market we have at the present
transactions; (2) for the benefit of the lower financing cost obtainable time, it is essential that the accepting banks carry at all times a certain
by the shipper in the United States, foreign buyers were willing to proportion of their assets In acceptances of other banks, and properly
assume the risk of fluctuations in exchange. . . .
so, but the amount should depend upon their condition at the time of
STEADY GROWTH OF ACCEPTANCE AS A MEANS OF FINANC- purchase and should not be based upon a percentage of their own acceptance liabilities. A procedure of this sort is not conducive to a
ING MORE OR LESS FROZEN TRANSACTIONS.
broader or healthier market.
The showing thus made seems to be conclusive as to the
Richmond.—We do not believe Reserve banks should follow this
practicable.
belief that there has been a steady growth of the accept- policy; we do not believe it to be
St. Louis.—No.
San Francisco.—No. It would be more constructive if Federal Reance as a means of financing long-term, storage, more or
serve banks would educate accepting banks to the desirability of exless "frozen" transactions chiefly arising out of a home sur- tending at all times (even when borrowing at the Federal Reserve bank)
not greater than that bid
plus of farm products or out of trade between foreign coun- reasonable lines of credit to dealers at a cost
for 90-day bills.
accepting banks to underdifficult
for
is)
lacked
for
(although
it
working
not
be
have
It should
tries which
capital. In some
stand that their accepting privilege is of no value unless a market can
aspects the financing of such needs is praiseworthy; but does be found for their bills. The dealers are rendering this service, and the
it give rise to a kind of paper which should figure in the port- banks creating bills should, for selfish reasons if for no other, support
them instead of leaving such support (at times) entirely to the Federal
folios of "quick paper" held by member banks? Still more, Reserve banks.
should it figure as an element in the portfolios or reserves
RESERVE BANKS NOT INCLINED TO FAVOR CHANGES IN
of Reserve banks, or for that matter of foreign banks, when
ACCEPTANCE PRACTICE.
held by them on behalf of such foreign banks. There can
hardly be other than a negative reply to such a question;
and yet it remains true that more and more of such paper
had been appearing in the portfolios of Reserve banks prior
Reserve banks are thus and elsewhere exhibited as unwilling to see broad change in existing methods designed to
change acceptance practices and as preferring the same
methods that have brought something like disaster as illus-
to the German collapse. Impelled, moreover, by our example, trated in the (subsequent) German breakdown. They apvarious other countries had tended to break over their well parently were still disposed at the close of last year to see
established rules of banking, and were taking into their bank- a continuance of the situation which had been developed
ing systems accommodation paper originating in Germany. prior to that time with the business narrowly controlled and
The result has been the finding of the Wiggin Committee of out of relation to business in general. The situation so relast August, which has located officially not less than $300,000,000 of such acceptances in American banks, with prob-
vealed included the habitual supporting of.the acceptance
market entirely or nearly entirely by Reserve banks them-
ably an equal amount in the banks of foreign countries. As selves, and the maintenance of a plan whereby both issue
4216
FINANCIAL CHRONICLE
ACCEPTANCE BUSINESS UNDER EXISTING PRACTICE
LARGELY A STOCK MARKET ADJUNCT AND A SOURCE
OF DANGER.
In these circumstances, it could hardly be expected that
there would be a very close relationship between acceptance
demand and the business situation or the commercial paper
needs of the country. Reserve banks, in some cases, assert
that the acceptance system has resulted in largely increasing
the amount of self-liquidating paper in existence, but they
give no evidence of it. Since it is so largely a stock market
adjunct it is unavoidably inclined to have its whole being
regulated or controlled by stock market conditions. It is not
possible, surely, to develop an acceptance market on these
lines, if it is to fulfill any purpose formerly known to European banking practice.
The conclusion thus becomes inevitable that the road of
reform in acceptances is not through artificial regulations
of an administrative nature, but is rather to be found in connection with the restoration of open market operations to
their known and natural position as a part in the structure
of central banking. Until that object is accomplished, it
can hardly be expected that the acceptance will continue to
be anything other than a constant source of danger-a nominally self-liquidating piece of commercial paper which is
in reality a finance bill, or bit of "revolving credit" representing oftentimes surplus commodities in storage here or
abroad, or frozen transactions embodying past debts and
working capital requirements.
The Course of Bond Prices.
The "Financial Chronicle" is with this issue inaugurating
the publication of tables illustrating the daily movement of
the bond market. In the years immediately preceding the
stock market crash of 1929 comparatively little interest was
evinced by the "man on the street" in the action of the bond
market. Apparently, the sole topic of importance to investor and trader alike was whether common stocks had
moved up or down.
To-day the situation is reversed. Everyone realizes that
the stock market is hovering around the lowest depths so
far recorded during the depression. Yet it is felt, in informed quarters at least, that at the present time less attention need be paid to the daily movement of common stocks
than was the case two years ago. Instead, with all conservative institutions (such as banks and insurance companies), interest has focused on bonds in this abnormal
market, for upon the action of bonds in the past and the
future depends the very stability of those institutions
themselves.
The course of bond prices is reflected by the average yields
and by indicated average prices calculated on the basis of
those yields. Bonds have been classified both by quality,
as shown by the ratings currently given by Moody's Investors' Service, and by major groups-rails, utilities and
industrials. The method of rating and the bonds constituting the list at the present time are given below.
When any examination of the 1931 bond market is made,
two features stand out. One is the fact that early in the
year utilities displaced railroads as investments for safety,
with the result that whereas utilities are now in the premier
position, the carrier bonds-long regarded as the most stable
form of investment-have fallen behind and are now outranked by both utilities and industrials.
The other feature is the relative stability which has been
displayed up until September of this year by bonds carrying
the highest, or Aaa, Moody rating. Although these obligations suffered a sharp break in price at that time, and
although their decline to date has been disturbingly continuous, they still are priced relatively high as contrasted
with the lower-rated issues. The tables below picture the
daily action of the bond market from the beginning of December to date as well as the weekly action in November.
A line is added to show the corresponding figures a year
ago at this time-that is, on Dec. 24 1930:
MOODY'S BOND PRICES.
1931
Daily
Averages.
120
Domestio.
Aaa.
vvvoc00000coomoomocomoom
ovoba .pocomv2ommmenw.wwc,vvcomm
Wg;...vVaohobb3:-.6ti.36
oava v WpOOCZWA.COC3010.0. ON=00,..3
and purchase of the paper was confined to an exceedingly
small circle of banks. To this small circle appeal was
made when it was desired to draw in funds, and through the
same group funds were pushed out into circulation. The
stock market was thus the chief regulator of the acceptance
situation by determining whether there should be more or
less of the paper in the Reserve banks, and the relation of
the rate on acceptances to the call money rate.
[VOL. 133.
Dec. 24
23
22
21
19
18
17
16
15
14
12
11
10
9
8
7
5
4
3
2
1
WeeklyNov.27
20
13
6
By Groups.
By Ratings.
RR.
Baa.
P. U. Indus.
Aa.
A.
82.82
83.22
83.22
82.68
81.74
81.22
79.77
80.94
80.94
82.00
82.68
83.54
84.06
84.76
85.04
85.04
84.76
84.76
85.32
85.63
85.77
74.70
75.03
75.03
74.27
73.95
73.20
72.48
73.00
73.83
75.13
76.11
70.11
77.27
77.73
78.53
78.65
78.77
78.77
78.89
79.01
80.32
70.85
70.68
70.14
69.01
68.33
66.35
63.33
64.77
65.01
65.87
67.01
67.49
68.92
69.96
70.76
70.49
70.85
70.87
71.75
72.02
73.04
54.08 353.89
54.30 (54.03
55.82 54.66
54.40 53.35
54.30 52.75
50.97 50.04
47.42 46.12
48.35 46.74
49.03 47.37
50.15 48.36
51.26 49.29
51.77 49.81
53.18 50.83
54.22 51.79
55.26 52.54
55.41 52.38
55.14 52.75
54.40 51.91
55.20 52.68
55.53 52.82
56.35 54.17
78.56
78.56
78.45
77.89
77.44
75.37
73.18
74.42
75.04
76.30
77.55
78.23
79.47
80.53
81.37
81.49
81.25
81.25
81.86
82.46
82.84
75.32
75.55
75.70
75.25
75.10
74.11
73.51
74.74
74.80
75.86
76.48
76.80
77.83
78.47
79.12
79.30
78.80
78.96
79.46
79.40
80.02
87.06
88.57
89.62
88.26
81.30
83.19
85.02
83.97
73.69
75.95
77.98
77.17
57.97
81.54
64.80
63.93
83.58
85.30
87.08
86.41
81.21
82.22
83.27
82.56
55.59
59.46
63.02
01.59
MOODY'S BOND YIELD AVERAGES.
1931
120
Daily
DomesAverages.
tie.
Aaa.
Dec. 24_ _
23__
22._
2L_
19__
18._
17._
16_.
15._
14._
12._
11._
10._
9-8._
7_..
5._
4__
3.._
2._
I__
Weekly.
Nov.27.20-13__
6Yr. Ago.
Dec.24'30
By Ratings.
40
ForP. U. Indus. dims.
By Groups.
Aa.
A.
Baa.
10.27 18.12
10.23
8.10
10.04
8.01
10.20
8.20
10.23
8.29
10.87
8.72
11.64
9.43
11.43
9.31
11.28
9.19
11.03
9.01
10.81
8.84
10.71
8.76
10.44
8.59
10.24
8.44
10.06
8.32
10.03
8.35
10.08
8.29
10.21
8.42
10.07
8.30
8.28
10.01
8.08
9.87
6.31
6.31
6.32
6.37
6.41
6.60
6.81
0.69
6.63
6.52
6.40
8.34
6.23
6.14
6.07
6.06
6.08
6.08
6.03
5.98
5.95
7.66
7.63
7.61
7.67
7.69
7.82
7.90
7.74
7.72
7.59
7.51
7.47
7.34
7.26
7.18
7.17
7.22
7.20
7.14
7.11
7.07
16.48
16.11
15.93
15.72
15.78
16.18
16.58
15.63
15.58
14.90
14.61
14.52
14.24
13.94
13.77
13.72
13.69
13.75
13.27
13.70
12.96
RR.
7.37
7.35
7.31
7.41
7.46
7.71
8.05
7.91
7.85
7.71
7.58
7.52
7.39
7.28
7.19
7.19
7.20
7.23
7.16
7.12
7.03
5.34
5.31
5.31
5.35
5.42
5.46
5.57
5.48
5.48
5.40
5.35
5.28
5.25
5.20
5.18
5.18
5.20
5.20
5.16
5.14
5.13
6.36
6.33
6.33
6.40
6.43
6.50
0.57
6.52
6.44
6.32
6.23
6.23
6.15
6.69
6.02
6.01
0.00
6.00
5.99
5.98
5.87
7.49
7.52
7.57
7.70
7.78
8.02
8.41
8.22
8.19
8.08
7.94
7.88
7.71
7.59
7.50
7.53
7.49
7.51
7.39
7.36
7.25
6.90
6.65
6.43
6.52
5.04
4.94
4.87
4.96
5.79
5.64
5.50
5.58
7.18
6.95
6.75
6.83
9.60
9.05
8.59
8.71
7.88
7.38
6.97
7.13
5.89
5.75
5.62
5.67
6.93
6.81
6.09
6.77
12.28
11.60
11.11
10.75
5.39
4.52
4.85
5.43
0.74
5.32
5.22
5.61
7.33
I
It will be seen that as compared to a year ago, the indicated average yield of the 120 domestic bonds has increased
by 37%. In December alone the yield increase amounted
to 5%. For the railroad group, where greatest changes have
occured during the year, the average price decline has been
more than 50%'since December 1930. The average price
of the Aaa industrial bond one month ago was $81.21, while
on Friday it sold at only $75.32, a loss of almost $6 in one
month.
EXPLANATION OF MOODY'S RATINGS.
Due to their wide use by investors and financial institutions, ratings
are commonly accepted as ready measures of investment quality.
Moody's Ratings have been applied to bonds longer than any other
system. They are based on statistical studies of asset values, earning
power and stability, combined with the judgment and experience of a
staff of expert analysts. They are measures of investment quality
and are not intended primarily as business forecasters or market indicators nor are they in any sense credit ratings.
The rating symbols are summarized as follows:
Aaa
Bonds carrying an Aaa rating meet the highest tests of every sort.
Many such issues will have varying non-statistical characteristics, but
such variations are usually unimportant and will seldom make an issue
unavailable for this highest grade group if it measures up to the requirements of the "statistical rating."
Aa
Bonds carrying an Aa rating fall one scale lower than those of the
very highest grade but in tests of asset value, earning power and stability they always rank well in the high grade field and frequently the
difference in their statistical rating from that of the highest grade is but
slight. All Aa bonds are well-protected high-grade investments.
A
Bonds carrying an A rating are also well up the scale as regards such
tests as asset value, earning power and stability. While necessarily
on a lower plane in these weighted averages, their classification as sound
Investments is fully demonstrated. They are somewhat more sensitive
to changes.
Baa
Bonds carrying a Baa rating are also on a constructive plane and no
bond Is given a Baa rating unless it meets the uniform tests determined
for all such issues. Baa bonds of many classes are often recommended
to Investors who do not exclusively seek the very highest grade groups
and who want a larger income return than can be obtained among the
Aaa, Aa and A classes. Bonds of this rating are not generally of institutional grade.
DEC. 26 1931.]
FINANCIAL CHRONICLE
4217
group, the "Aa" becoming "A," the "A" becoming "Baa," and the "Baa"
becoming "Ba." Some changes were necessary in Individual cases, as one
or two bonds in each group continued with the same rating. Slight adjustments were necessary in the group averages, to care for these changes.
The revision of the averages was worked back to June 30 1931. Therefore, from that date, "Aaa" bonds became Aa," &c., each rating group
METHOD OF CALCULATING MOODY'S BOND YIELD
being one rating lower, but the entire list of forty bonds being substantially
the same throughout.
AVERAGES.
The list of foreign bonds as at present constituted Is as follows:
The bonds used in thess averages have been selected as representative
A
Aa
of their respective groups-railroad, utility and industrial. The 40
Akershus 5s, 1963
railroad bonds consist of ten bonds each in the four upper ratings, Antwerp 58, 1958
Argentine "A" 6s, 1957
1942
4345,
Batavian
Petroleuni
bonds
and
likewise
have
industrial
Aaa, Aa, A and Baa. The utility
Bergen 5s, 1960
Belgium 6345, 1949
Danish Cons. Munic. 5s. 1953
been selected according to rating groups.
Copenhagen 4I48, 1953
Framerica Ind. Dev. 734g. 1942
The closing prices of the individual bonds are recorded each day. The Denmark 434s. 1962
Germany
534s. 1965
1941
734s,
France
yields are calculated on these prices and are averaged to determine the
Japan 534s. 1965
Norway as, 1963
yields of each rating group. The yields of the various rating groups are Norway Munic. Bank 58, 1970
Oriental Development 5345, 1958
Oslo Gas & Elec. 5s, 1963
then combined to form the averages of the railroad, utility and indus- Soissons 6s. 1936
Panama 534s. 1953
trial groups. The above averages are further combined to form the Sweden 534s. 1954
averages for the 120 bonds, by ratings as well as in total.
Ba
Baa
Buenos Aires (Prey.) (Is. 1961
Changes in the list of bonds are made very sparingly. It has been Budapest 6a, 1962
Bulgaria 7s, 1967
thought best to retain a bond in the list even though its yield is somewhat Buenos Aires (City)634s, 1955
Colombia 6s, 1961 (Oct.)
out of line with the yields of the rest of the bonds in its group, unless Finland 534s, 1958
Gt. Cons. El. Pr. of Japan 6345, 1950 Hungarian Cons. Mun. 7s, 1946
some good reason appears for changing it. It is necessary, however, Italy
65, 1943
Karstadt
7s, 1951
Poland (is, 1940
to change the list of bonds occasionally, and this is ordinarily done only Poland 7s, 1947
Ruhr Gas 634s, 1953
when fundamental conditions necessitate a change in the rating of any Prussia 6s, 1952
Rumania 78. 1959
Rome 6345, 1952
particular bond.
Serbs, Croats Sr Slovenes 7s, 1962
Uruguay 6s, 1960
When a new bond is substituted for one which has been removed, a Vienna 6s, 1952
United Elec. Service (Italy) 7s, 1956
slight adjustment in the group average is usually necessary in order to
keep the average on a comparative basis. The group average is
determined as of the date of change, for the group as it has been con- DEATH OF CHARLES W. STEVENSON.-This paper
stituted and for the new group. The difference between the yields of
the two lists (which is usually very small) is then carried forward as an
has sustained a severe loss in the death of one of the
adjustment. In this way the changes in the list of bonds are kept from
staff. Mr. Stevenson
Influencing the day-to-day movements of the averages which thus reflect most gifted members of its editorial
merely the changes in market quotations.
quarter of a century.
a
almost
for
staff
the
of
member
was a
To obtain the average prices corresponding to the averages of yields,
the ablest articles
of
many
contributed
he
time
bonds
ten
of
for
this
group
found
are
each
maturities
and
During
average coupons
of the given rating and the average yield for this group is converted into
a wonderful comhad
He
paper.
the
in
appeared
have
that
a corresponding price by means of bond tables. Average prices for
120 bonds,for all railroad bonds,for all Aaa bonds,&c.,are also obtained mand of language, with a wide vocabulary and a style and
by a similar conversion of the corresponding yield averages.
With bonds rated lower than Baa the speculative elements frequently
overweigh any investment possibilities inherent in the issue. The
position of a company with obligations rated in one of the classifications
under Baa may,of course, so improve in the course of time that the rating
on its bonds may justifiably be improved.
diction entirely his own. He wrote scholarly English, and
The following is the list of bonds included in bond yield
his editorial discussions were always embellished with the
averages classified according to current ratings by Moody's
choicest of words and expressions. These characteristics
Investors' Service:
were particularly in evidence when he discussed such subRAILROADS.
as "Thanksgiving" and "Christmas." The article on
jects
Aa
Aaa
Atch. Top. & Santa Fe gen. 45, 1995 Atlantic Coast Line 434s, 1964
the latter subject, which appeared in last Saturday's issue
Chesapeake & Ohio 434g. 1993
Atlantic Coast Line 4s, 1952
Chic., Mil. & St. Paul 4s, 1989
of our paper, was probably the last thing ever written by
Baltimore & Ohio 1st 4s, 1948
Chesapeake & Ohio gen. 4)48, 1992 Chic. & W. Indiana 43, 1952
him, having evidently just been finished by him before he
Chic., Rock Island & Pacific 4s, 1988 Great Northern 4345, 1976
Erie 1st cons. pr. lien 4s, 1996
New York Central 3I4s, 1997
was stricken with cerebral hemorrhage on Saturday, Dec. 5.
Kansas City !Southern 3s, 1950
Northern Pacific 35, 2047
Norfolk & Western 1st cons. 4s. 1996 Nor. Pac. ref. & imp. 434s, 2047
Deep faith and an exalted spirit always ran completely
&
Antonio
San
Aransas
4s,
Pass
1943
Pennsylvania 41"Sa. 1965
Southern Pacific 434s, 1968
Union Pacific 4s, 2008
through such articles, and, being penned in poetic language,
Baa
A
they commanded wide attention and called forth wide praise
Balt. & Ohio cony. deb. 45.65, 1960
Baltimore & Ohio 5s. 2000
from admiring readers. The Editor never failed to receive
Central New England 1st 4s, 1961 Boston & Maine 6s, 1967
Cleve., Cin.. Chi.& St. L.4;is, 1977 Chesapeake Corp. 58, 1947
appearance of such
Chic., Terre Haute & So. 1st 58.1960 many letters of appreciation after the
Colorado & Southern 4is, 1980
Kansas City Southern ref. 5s, 1950 Erie 5s. 1967
articles.
Missouri-Kansas-Texas ad.'. 58, 1967
Missouri-Kansas-Texas 4s. 1962
Missouri Pacific 5s, 1977
N. Y., N. H.& H.41:, 1967
But Mr. Stevenson's contributions were not limited to this
N. Y., N. H.& H.deb. 4s, 1957
New York Central 4 s. 2013
Western Maryland 4s. 1952
1949
scope of work, though he excelled particularly in writing of
Rio Grande Western
Chicago & North Western 434s, 2037
Texas & Pacific 58. 1977
that kind. He had a wide range of topics, discussing more
PUBLIC UTILITIES.
subjects of banking and economics, in both of
especially
Ast
Aaa
Columbus Rwy. Pwr. & Lt. 434s,'57 which he was well versed through deep study and wide
American Tel. & Tel. 5s, 1965
Kansas Gas & Elec. 434s. 1980
Bell Tel. of Pa. 5s. 1960
reading. In addition, in the banking line he had some pracLouisville Gas & Elec. 58. 1952
Cincinnati Gas & Elec. 4s, 1968
Metropolitan Edison 434g. 1968
Commonwealth Edison 4Hs, 1957
tical experience. In all these matters the columns of the
Consolidated Gas, Elec. Light & Northern States Pwr. 4348, 1961
Ohio Power 434s, 1956
Power Ball. 4s, 1981
paper were greatly enriched by his sound reasoning, clear
New England Tel. & Tel. 4;fs, 1961 Pacific Gas & Elec. 434s, 1957
N. Y. Gas, El. Lt., Ht. & Pwr. Penna. Water & Pwr. 4345, 1968
lucidity of expression. In his early days, before
thinking,
Coke
&
Lt.
Peoples
&
Gas
5s.
1947
4s, 1949
Sierra & San Fran. Pwr. 58. 1949
Philadelphia Electric 48 1971
connection with the "Financial Chronicle," he was for a
his
Pub. Serv. Elec. & Gas 4s. 1971
Baa
time a country banker, and thus gained an intimate knowlWest Penn. Pwr. 4s, 1961
Amer. Water Wks. & Elec. 6s, 1975
Florida Pwr. & Lt. 1st 5s. 1954
edge of the problems of the country banker. He was born
A
Interstate Power 5s, 1957
Amer. Gas & Elec. 5s, 2028
in St. Louis March 15 1859, but his home town was WarrensNational Pwr. & Lt. 5s, 2030
Appalachian El. Pwr. 5s, 1956
Columbia Gas & Elec. 58, May 1952 Nevada Calif. Elec. 5s, 1956
burg, Mo. The "Daily Star Journal" of Warrensburg, in
Southeastern Pwr. & Lt. 6s, 2025
Detroit City Gas 55, 1950
Southern Colorado Pwr. 6s, 1947
Indianapolis Pwr. & Lt. 58, 1957
upon his death, notes that he wrote many poems
commenting
6s,
Standard Power & Lt.
1957
Louisiana Pwr. & Lt. 5s, 1957
United Light & Rwys. 5345, 1952
as articles on financial subjects, and says that one
well
as
North Amer. Edison 58, 1969
West Texas Utilities Co. 5s, 1957
Philadelphia Co. 5s. 1967
of these latter, entitled "The Dignity of Banking," was later
Texas Pwr. & Lt. 55, 1958
1944
5s,
Lt.
&
Pwr.
Utah
reprinted and sent to every banker in the United States.
INDUSTRIALS.
In these early days he was Cashier of the Bank of WarrensAa
Aaa
Aluminum Co. of America Ss, 1952
burg, which was later taken over by the People's Savings
American Radiator 434s, 1947
American Smelt. & Ref. 5s, 1947
Baldwin Locomotive 5s, 1940
Bank of Warrensburg. A series of articles on the Louisiana
Bethlehem Steel 5s, 1942
Gulf 0115g. 1947
Bush Terminal 48, 1952
Illinois Steel 434s. 1940
was prepared by Mr. Stevenson for the St. LOUIS
Purchase
Crane Co. 5s, 1940
Linea & Myers 5s, 1951
Lehigh Coal & Nay."A" Ois, 1954 Cudahy Packing 5s, 1946
before the World's Fair in 1904. These caused
"Republic"
Inland Steel 434s. 1978
Procter & Gamble 450, 1947
Lackawanna Steel 5s. 1950
Royal Dutch 4s, 1945
much favorable comment and were widely read. He also
Texas Corp. 5s, 1944
Stand. Oil of New York Ois, 1951
Union 011 of Cal. 6s, 1942
was associated with the Panama-Pacific Exposition, in
Union Gulf Corp.5s, 1950
1913, and gathered all the historical data for the same. He
Baa
A
American Rolling Mills 5a, 1948
Abraham & Strauss 530, 1943
was at one time Regent of the State School. Mr. Stevenson's
Crown Cork & Seal 6s, 1947
Bush Terminal Bldgs. 5s, 1960
Dodge Bros. 6s. 1940
Lorillard 7s. 1944
father was Charles P. Stevenson, a medical doctor who came
National Dairy Products 5348. 1948 Goodyear Tire & Rubber 5s, 1957
Paramount Broadway 534s, 1951
McCrory Stores 550, 1941
apparently from Kentucky. His mother was Martha MetzSinclair Pipe Line 58, 1942
National Steel 5s. 1956
ger, born in Baltimore, Md.
Paramount Publix 534s, 1950
Sun Pipe Line 5s. 1940
Pure Oil 550.1940
Swift & Co 58, 1940
After the death of his mother, on Dec. 3 1910, Mr. StevenPurity Bakeries 5s, 1948
United Drug 5s. 1953
Wilson & Co. 6s, 1941
Youngstown Sheet & Tube 5s, 1978
son came East. He, however, spent very little of his time
FOREIGNS.
in New York City. During the last three of four years hia
Note.-The averages of yields on foreign bonds have been revised, due health became impaired, and he was
frequently obliged on
to the downward revision of foreign bond ratings made in September 1931.
In the great majority of cases the rating of each bond on the list was at that account to reside elsewhere, especially during the winthat time changed to the next lower rating.
ter months, when the climate proved much too severe for
It was decided, therefore, to carry forward the yield averages using
virtually the same group of bonds, the "Aaa" bonds becoming the "Aa" him, and he then went out to California to live, usually at
4218
FINANCIAL CHRONICLE
San Diego. But he never discontinued his work for the
"Chronicle," continuing to send his articles in with unvarying regularity. To the Editor his death is in the nature of a
personal bereavement,close association with him for so many
[VOL. 133.
years having led to a feeling of great endearment for him.
As a matter of fact, while of a retiring disposition, Mr.
Stevenson greatly endeared himself to everyone with whom
he came in contact.
Indications of Business Activity
THE STATE OF TRADE—COMMERCIAL EPITOME.
Thursday Night, Dec. 24 1931.
An outstanding fact is that the retail trade in the United
States is as a rule smaller than that of last year. This is the
case almost everywhere throughout the country. Prices are
low, but the people's finances are also low. They will not
buy anything but the cheaper articles. Furthermore the
weather has been too warm. It was 62 degrees in New York
City yesterday, or an average of 20 degrees higher than
that of a year ago. Cincinnati has of late had 62 degrees;
Chicago, 52; Cleveland, 54, and Kansas City 60, with 64
at Philadelphia and 52 at Boston. These are of course
remarkable temperatures for the final week of December.
They are in strong contrast with the bitter weather spreading
over Europe, and even North Africa. It comes to this on
this side of the water that the high temperatures hurt trade
in seasonable articles. Even where in some cities quantities
sold approach those of a year ago, the dollar value is far
below it. Heavy clothing and furs are hard to sell in the
East and the Central West. In Chicago it is said the business in holiday goods both at retail and wholesale is up
to the level of a year ago, but this is an exception that proves
the rule. In this city the sales of men's and women's shoes
are about as large as they were at this time last year but in
no line is there any improvement here. Some cities, it is
well to bear in mind, show a retail volume of business up to
that of 1930 and in some cases better. Yet there is no
evading the fact that the public as a rule has been buying
less than in 1930, and that the attitude of the people in
general is very conservative from a continued lack of confidence. Those who take an optimistic view say that at
any rate the trading on the whole during the holiday season
has been better than they expected. Some wholesalers have
been busy at times with replacement orders. The idea is
quite prevalent that the stocks held by retailers are down
to a low ebb,and that if anything occurs to restore confidence
retail buying is likely to leap to a very large scale.
Meanwhile heavy industries are still very dull. Iron and
steel have been in slack demand. Some steel quotations
have recently declined, and the fact is now more openly
recognized. Collections in general have continued to be
slow, though there are a few fortunate exceptions among
cities here and there, which report a little more promptness.
Men's clothing in general has been quiet. Philadelphia
reports an over-production of such goods. The wool trade
in Philadelphia has also been quiet, as well as that in hides
and leather. Boston reports leather dull and unchanged
and wool quiet. Manufacturers of women's shoes are doing
a fair business but men's are quiet. Boston sends unfavorable
reports about the holiday sales of dry goods. Chicago is
looking for better orders from the Pacific Coast in the wholesale dry goods line. Some of the reports to wholesalers and
jobbers stress the unusually small stocks now held by
retailers after prolonged abstention from normal buying.
Buyers have stuck to the policy of hand-to-mouth buying
for fully a year past. The coal trade has been hit by warm
weather, and coal mining is not up to the usual level of this
time of the year. Wholesale business in coal has decreased
during the past week and fuel oils have also suffered from
the high temperatures. Kerosene alone has been in better
demand at some advance in prices. The outlook for the
petroleum industry on the whole is considered less favorable.
Though proration is still under way,and determined efforts
are being made to reduce production further, the output, as
a matter of fact, has recently increased and prices have
dropped. Gasoline sales have been smaller and stocks
accordingly have increased. The automobile industry is
still dull. The December output of cars, it is believed, will
show some increase over that of November, but by no means
enough to inject real snap into the industry. For that
reason the auto buying of steel is very disappointing. Building is very sluggish, and there is little hope of immediate
improvement. This affects the lumber trade as a matter
of course. Seattle lumber mills are still running at only
25% of capacity and many are closed altogether until after
the holiday. In the Central West flour mills are operating
at from 40 to 75% of capacity. Los Angeles reports a little
more activity in the motion picture industry than at this
time last year.
The stock market, on the whole, has given no bad account
of itself. It is, of course, no time to dogmatize about the
movements of the stock market. Too often in the past a
transient improvement at the Stock Exchange has seemed
to "keep the word of promise to the ear, to break it to the
hope." But that veteran of business, John D. Rockefeller,
seems to think that the turn in the long lane of depression
has come. Certainly it has got to come sometime. It
may be that the bond market will lead the way. Wheat has
declined 2 cents during the week, largely because of a lack
of export demand, and it would seem that the prospects for
foreign buying of domestic wheat are none toe promising,
with Argentina and Australia about to become active competitors for the European market. Meanwhile, the export
buying is confined almost entirely to Manitoba wheat,
whether for Atlantic or Pacific shipment.
Corn has declined 1 to 1%c., mainly because of a lack of
a vigorous cash demand, which nullified the effects of small
receipts; holding back of supplies by farmers, and a recent
cut in the Government crop estimate of about 100,000,000
bushels. The cheapness of hogs also tends to militate
against any improvement in prices for corn. Other grain
has followed wheat and corn downward, but nowhere has
there been any such depression as marked the trading in
grain a few weeks ago. Provisions have been quiet and lard
is off 2 to 5 points, with a larger hog crop than that of a year
ago.
Cotton has practically stood still during the week. The
large supplies are offset by the cheapness of the price and the
steady demand from the trade for home and foreign account.
Exports of cotton are making a better showing, especially
to the Far East, which is buying more freely of American
cotton than it did a year ago, taking advantage of the present
cheapness of the American staple. Cotton trading is largely
a waiting affair. The next big factor in cotton may be the
acreage question. It will have to be cut to the quick or there
will be trouble for the South. Sugar futures have advanced
2 to 4 points, but spot Cuban raws have remained at 1.10c.
cost and freight, with trading very light. No conclusion has
been reached at the Paris sugar conference. It is noticeable,
however, that the 150 December notices issued on the 21st
inst. were promptly stopped. And many think sugar is
cheap enough. Coffee advanced a little less than half a
dozen points in a dull market. But the offerings of actual
coffee.have been small, and in the background is the plan to
destroy some 12,000,000 bags of Brazilian growth. Rubber
has advanced 10 to 20 points and the belief seems to be deep
seated in some quarters that a plan will be devised by England
and Holland to restrict production to a telling degree. Hides
futures have declined 10 points. Silver futures are off 50 to
65 points for the week. Silk dropped 10 points and cocoa 9.
On the 19th inst., stocks and bonds again struck out for
higher prices. Bonds in a sense set the pace upward. . That
injected new snap into a market that needed it. Advances
were general, though towards the close there was some
irregular reaction. One incident of the 19th inst.,
perhaps not without a certain significance, was a rise in
Stock Exchange seats of $9,000, one selling at $131,000.
Stocks on the 21st inst. declined in some cases 13 to
33' points on profit taking after a sudden and perpendicular
rise late last week. The pressure of selling had sensibly
relaxed though prices were still on a somewhat slippery
terrain. Declines took place of 3% in International Silver,
33% in American Telephone, 33 in Union Pacific, 23
% in
Allied Chemical, 2% in U. S. Steel common and Standard
Oil of California, and 13
% in Auburn and 13% in American
Can. But fractional advances were scattered throughout
the list. An extended list of domestic bonds moved upward
oblivious of stock declines or anything else but a better
DEC. 26 1931.]
FINANCIAL CHRONICLE
demand. Most United States Government bonds were
lower though 3 out of 11 advanced slightly. Treasury 3s
went to new low for the year. But this was about the only
dark line in the bond spectrum. Most foreign issues advanced. If externals meant anything they seemed to mean
something beneath the financial situation seemingly indicative of the stirring of new and hopeful forces in no slight
degree due partly to the enlightening testimony of bankers
before the Banking Committee of the United States Senate
and partly to technical conditions.
On the 22nd inst. stocks declined at one time hut rallied
with rather significant readiness later. Again, back of it
all, was a better bond market, especially for railroad issues,
many of which rose 1 to 8 points. In fact domestic bonds
in general were higher. Foreign issues were irregular and
U. S. Government bonds were 1-32 to 12-32 points lower.
Leaders in the rise in stocks were Auburn with a gain of no
less than 93 points, American Telephone with 23
/s; Santa
Fe, 2; International Business Machine, 338; Radio, pref.
"A," 4Yi; National Lead, 4, and Amer. Can & J. I. Case,
1l(; Amer. Smelting and Allied Chemical, 1%; Union
Pacific, 1; Delaware & Hudson, 13'8, and Santa Fe, pref., 2.
Fifty stocks had an average rise of about 1%. Stocks and
bonds on the 23rd inst. were lower with sales of 1,560,487
shares of stocks. The declines were due mostly to profit
taking on the eve of three holidays, though some of it was
attributed to income tax selling. Popular stocks were down
some 1 to 5 points and in a few cases more than that. Railroad stocks acted better than others. The industrial shares
were under some pressure. The Hungarian moratorium had
had little if any influence. It had been a foregone conclusion and seemed to have been mostly discounted. Taking
stocks and bonds as a whole, it was clearly enough a preholiday realizing affair without special significance. A
drop of 33/i points in Amer. Tel. & Tel. to nearly its lowest
price this year was taken partly as a reflex of recent failures
of New England banks. The selling of some other stocks
was said to be partly due to this same cause. But mostly,
it was a day of realizing after the recent rise.
The New York Stock Exchange will be closed on both
Dec. 25 and Dec. 26. The Curb Exchange will also be
closed on both days. The Chicago Stock Exchange, the
Board of Trade, the Curb Exchange there and the Livestock
Exchange will be closed Saturday, Dec. 26 as well as Dec.
25 for a three-day Christmas holiday. All the New York
commodity Exchanges will be closed on both the 25th and
the 26th inst.
On Thursday stocks were irregular in trading totaling
only 1,106,103 shares, the smallest for a full day in 60 days.
The closing showed prices for the pivotal stocks practically
unchanged. A 10% cut in railroad wages seems certain.
Wheat advanced % to lc. and cotton 10 to 15 points. But
stocks were sluggish. They made no response to news that
the Young Plan advisory committee has recommended an
extension of two years of the moratorium on intergovernmental debts. It seemed to indicate that the Young Plan
is doomed. At any rate some doubt whether Germany will
ever resume payments on the former scale. Apparently all
this had been discounted. Certainly it fell flat. Bonds
declined, led by United States Government issues, weakened
by prospects of large government financing early in 1932.
Railroad bonds declined moderately. German bonds were
but slightly affected by the news from Basle.
The railroads of the country have served notice on more
than 1,000,000 of their workers of a desire to effect a wage
out of 15% under terms specified by the Railway Labor Act,
it was announced by Daniel Willard, President of the Baltimore & Ohio and chairman of a joint committee of nine
presidents representing heads of all the major trunk lines.
At the same time the western executives agreed to join
the eastern and southern presidents conference in endowing
a committee with plenary powers. Washington wired:
"President Daniel Willard of the Baltimore & Ohio Railroad
told President Hoover he had confidence in the future amicable settlement of the),ailroad dispute which will save railroads $200,000,000. This may be added to the $100,000,000 provided for by the railroad credit corporation, and
with this sum Mr. Willard said he looks forward to the
future with considerable optimism."
Providence, R. I. wired that two cotton manufacturers in
that State had decided to join in the movement in the South
by curtailing operations 25% with a plan calling for the
closing down of mills for one week of each month beginning
with Christmas week. Charlotte, N. C. wired that print
4219
cloth production by Southern mills will be reduced by more
than 10,000,000 yards this week as a result of the extension
of the Christmas holidays which is the first step in a program
to be carried out for an indefinite period by some of the
largest print cloth mills in the South. Gastonia, N. C.
wired that full-time operation for the 21 yarn mills in the
Chain of Textiles, Inc. is assured for 10 or 15 weeks beginning Jan. 1. Executives of the corporation said orders
for delivery after Jan. 1 justified the belief that early in
1932 there will be a big increase in the textile business.
Many of the orders are coming by telegraph indicating that
the buyers want prompt delivery. Retailers, manufacturers
and jobbers have been buying from hand to mouth and now
find themselves with low stocks. Union, S. C. reports
that 64 South Carolina mills will observe the Christmas
holidays by a shutdown varying from two days to two weeks.
These mills represent 2,727,200 spindles and 69,503 looms.
London cabled that at Manchester textile buyers and
sellers were inclined to be extremely cautious on account of
labor and other uncertainties. The tone was better, however, and import duties are said to be helping sentiment in
some quarters. Manchester cabled on Thursday that cotton
mill workers in that district refuse to accept an increase in
working hours. This is in answer to the employers' suggestion that after Jan. 1 1932, the agreement made 12 years
ago expiring, they will be at liberty to run the mills as many
hours a week as they see fit. Detroit wired that Christmas
trade by leading retail merchants is considerably below
normal for the last decade, the result of continued mild
weather, which still is well above the freezing point. This
condition has proved especially unfavorable for the sale of
sport goods and heavy winter clothing.
San Francisco wired that buying for the Christmas holidays
continued to gain momentum there last week, with special
sales showing gratifying results and with high grade merchandise offered for the first time in many years at prices
not much above manufacturing costs. Stores, in general,
are making every attempt to move their merchandise as
rapidly as possible. Electric output in the United States
for the week ended Dec. 19 was 1,675,653 k.w.h., a decrease
of 5.3% from last year, according to the NatiOnal Electric
Light Association. High Point, N. C., wired that the
Stehli and Hillcrest silk mills there have announced that,
beginning next Monday, they will give employment to 400
additional operatives. Officials said they had already
notified the workers to report because orders in hand warrant capacity operation of mills.
Here on the 19th inst. the temperature was up to 58
degrees in a remarkably Pleasant day for that date in the
year. Chicago had 44 degrees; Cincinnati, 44 to 50; Cleveland, 38 to 42; Detroit, 38 to 40: Louisville, 52 to 58, and
Milwaukee, 40 to 44. New York temperatures on the 21st
inst., were 24 to 44 degrees. Boston had 18 to 40; Chicago,
42 to 50; Cincinnati, 40 to 60; Cleveland, 34 to 54; Denver,
38 to 62; Kansas City, 48 to 56; Milwaukee, 40 to 48; St.
Paul, 32 to 40. Memphis wired Dec. 21, that flood waters
on tributaries of the Mississippi River were spreading out
over the fertile delta region. Hundreds of tenant farmers
evacuated their homes. New Orleans wired that three
small rivers overflowed in three Southern States: Arkansas,
Louisiana and Mississippi, and hundreds have fled from their
homes. The levees were threatened at Asa, Miss. The
oil fields in Arkansas have been inundated and about 400
producing wells have been put out of commission.
On the 22nd inst. it was 43 to 56 degrees here, an average
of 50 degrees against 36 a year ago and 31 for 46 years.
Chicago had 46 to 54, Cincinnati 48 to 54, Cleveland 52 to
58, Denver 40 to 58, Detroit 44 to 52, Kansas City 40 to
52, Milwaukee 42 to 54, St. Paul 38 to 48, Montreal 32 to
36, Omaha 44 to 48, San Francisco 48 to 52, Seattle 42 to
46, Spokane 28 to 42, St. Louis 44 to 56, Winnipeg 24 to 32.
On the 23rd inst. New York temperatures were 49 to 62
degrees, an average of 56 against an average a year ago 20
degrees less than this. Chicago had 44 to 52, Cincinnati
46 to 62, Cleveland 46 to 54, Kansas City 40 to 60, and
Winnipeg 18 to 26. Here on Thursday temperatures were
still mild, being 47 to 56. The forecast was for rain on
Thursday night and clear and colder by night on Christmas
Day. In the Central West, temperatures were 42 to 62.
On Dec. 24 the temperatures here were close to the high
record for Dec. 24. Paris on that day reported the coldest
weather in Central Europe for years past with 22 degrees
Fahrenheit below zero in Bavaria. In Paris itself, mild
weather with 41 degrees was registered. In the French
Alps snow falls were heavy and deaths from exposure were
reported even in North Africa. The cold has been severe
in Italy and Spain. Heavy snows fell in Great Britain and
the Continent from Scandinavia to the Mediterranean.
The death toll was placed at as high as 50.
Loading of Railroad Revenue Freight Still Small.
Loading of revenue freight for the week ended on Dec. 12
totaled 613,534 cars,the Car Service Division of the American
Railway Association announced on Dec. 22. This was a reduction of 22,832 cars below the preceding week this year.
It also was a reduction of 130,819 cars below the correspond-
V
4220
ing week last year and 309,327 cars under the corresponding
week two years ago. Details follow:
44,627,817
51,345,761
REVENUE FREIGHT LOADED AND RECEIVED FROM CONNECTIONS
(NUMBER OF CARS)-WEEK ENDED DEC. 5
Railroads.
Total
Group CAnn Arbor
Chicago, Ind. & Louisville
C. C. C.& St. Louis
Central Indiana
Detroit & Mackinac
Detroit dr Toledo Shore Line
Detroit. Toledo dr 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
1929.
1931.
1930.
1,878
3,478
8,889
720
3,103
12,176
619
2,140
3,633
10,002
932
4.012
13,592
675
2,216
4,107
11,786
989
4,579
15,851
761
203
4.946
10.450
2,738
2.327
12,056
1,040
.wwwwa
0v.r,c41000
como.m.q.
Total
Group BBuffalo, Rochester dr Pittsburg
Delaware & Hudson
Delaware Lackawanna & West_
Erie
Lehigh dr Hudson River
Lehigh & New England
Lehigh valley
Montour
New York Central
New York Ontario & Western
Pittsburgh & Shawmut
Pitts. Shawmut & Northern._
Ulster & Delaware
1930.
30,863
34,986
40,289
33,760
39,5.53
2,842
6.053
10,262
12,490
169
1,630
8,673
1,386
21,401
1,922
430
380
54
4,025
8,954
12,794
14,703
164
2,161
11,228
2,317
26,290
1,225
642
510
43
5,132
9,960
13,515
17,317
265
2.300
12,784
2.638
30,231
2,045
846
467
62
1,201
7,448
5.416
12,996
1,974
867
6,937
11
26,925
1,989
16
229
83
1,793
8.648
5,991
16,532
2,441
1.279
7,918
56
35,465
2,309
27
300
101
67.692
85,056
97,562
66,092
82,860
581
1,771
9,032
54
322
250
1,166
3,012
5,900
4,042
4,491
4,713
3,292
1,239
5,845
2,745
too.o.bw.
op
0010-4.1a.-oo.1tn, 01-01
=01.001000wogp.001.01n:
1001001
000Qt0O%l3QC30$
1931.
Eastern DistridGroup .4Bangor & Aroostook
Boston & Albany
Boston & Maine
Central Vermont
Maine Central
N. Y. N. H.& Hartford
Rutland
Total Loads
Received from
Connections.
Total Revenue
Freight Loaded.
516
2.460
12,831
62
397
296
2,271
3,456
7,329
7,187
6,087
6.571
6,611
1,343
7,357
3,872
1,116
1,875
10,823
77
115
2,325
1,326
5,837
8,331
204
8,182
4.215
4,648
661
6,467
1,987
1,437
2,472
14,730
74
109
3.208
1,882
7,664
10,501
247
11,413
5,140
6,707
616
9,206
2,653
48,455
56,193
68,646
58,189
78,059
Grand total Eastern District. 147.010
176,235
206,497
158,041
200,472
Total
Pocahontas DistrictChesapeake & Ohio
Norfolk & Western
Norfolk & Portsmouth Belt Lin
Virginian
Total
Southern DistrictGroup AAtlantic Coast Line
ClInehfield
Charleston & Western Carolina
Durham d, Southern
Gainesville Midland
Norfolk Southern
Piedmont & Northern
Riehmond. Fred. & Potomac...
Seaboard Air Line
Southern System
Winston-Salem Southbound
Total
1931.
1930.
1929.
1931.
1930.
24,731
973
516
148
7,294
47
377
189
1,396
63,057
14,811
6,260
57
3,044
30,830
1,322
598
248
9,828
210
589
177
1,599
76,333
17,839
8,075
74
3,749
37,133
2,225
700
282
11,766
494
617
266
1,430
91,930
20,105
12,027
82
4,512
12,874
930
143
5
11,252
47
20
19
2,887
33.696
16.235
1,086
1
4,952
18,802
2.003
153
9
13,479
77
25
19
3,654
41,982
20,365
1,730
1
5,349
122,900
151,471
183.569
84.147
107,648
18,988
14,951
859
2,917
23,863
19,025
940
4,283
26,086
23,835
995
4,785
5,530
3,585
1,395
568
8,006
5,319
1,896
576
37,715
48,111
55,701
11.078
15,797
8,718
1.091
358
170
52
1,801
537
385
7.896
20,716
203
12,736
1,281
675
201
100
2,242
570
431
9,954
24,958
223
12,966
1,386
725
191
88
2,325
494
478
10,563
27,338
209
4,500
1,206
768
286
82
1,345
813
3,311
3.556
11,608
823
5,701
1,398
1,026
293
116
1,528
1,009
3,942
3,998
14,461
1,011
41.927
53,371
56,763
28,298
34,483
235
672
726
3,343
282
992
883
336
790
20.230
17,713
150
122
1,969
2,562
516
619
206
786
877
4,328
398
1,031
1,041
486
1,217
26,047
23,719
156
202
2,757
3,370
851
632
249
915
923
4,436
592
1,099
1,121
444
1.350
32,878
29,206
147
349
2,834
3,687
870
576
,
.w.
3.2-1
0,12001.:331400.
030001010000t00,.o.104...
..t.Dc,0-40100..4-41001-4
36,249,049
The foregoing, as noted, cover total loadings by the
railroads of the United States for the week ended Dec. 12.
In the table below we undertake to show also the loadings
for the separate roads and systems. It should be understood, however, that in this case the figures are a week
behind those of the general totals-that is, are for the week
ended Dec. 5. During the latter period only 15 roads showed
increases over the corresponding week last year, the most
important of which was the New York Ontario & Western Ry.
Allegheny DistrictBaltimore & Ohio
Bessemer & Lake Erie
Buffalo dr Susquehanna
Buffalo Creek & Gauley
Central RR. of New Jersey__
Cornwall
Cumberland & Pennsylvania...
Ligonier valley
ong Island
Pennsylvania System
Reading Co.
Union (Pittsburgh)
V. set Virginia Northern
Western Maryland
Total Loads
Received from
Connections.
Total Revenue
Freight Loaded.
Railroads.
133.
392
903
1,321
2,708
376
680
1,436
328
1,088
9,193
5,025
455
387
1,659
2,433
397
626
Total
52,040
68,104
81,576
22,963
29,407
Grand total Southern Dist__
93,967
121.475
138,339
51,261
63,890
1,219
15,831
2.915
21,374
4,191
486
488
3,555
283
9,222
586
2,139
5,021
10,182
845
1,366
17,886
3,249
24,770
5,389
761
1,024
5,186
339
12,173
637
2,838
6,102
12,805
1,083
1,607
22,607
3,776
28.950
6,537
1,001
1,177
7,587
413
13,028
776
3,184
7,684
14,393
1,645
1.211
8,425
2.251
6.286
2,549
107
328
4,370
154
1,861
380
1,641
1,520
2.267
1,013
1,518
10,246
3.178
8,018
3,324
116
450
7,625
215
1,769
426
1,927
1,809
2,407
1,038
78,337
95,608
114,365
34,363
44,065
20,717
217
3,360
18.340
14,129
3,019
1.945
3,978
415
1,514
487
104
15,182
268
292
15,752
1,237
1,650
27,077
216
3,758
24,601
15.311
3,593
2,287
4,688
638
1,687
732
153
20,028
279
286
18,573
1,292
1,861
33,015
349
4,533
27,897
19,661
5,111
2,855
5,898
954
2,381
1,032
163
23,980
364
245
22,279
1,341
1,953
4,413
31
1,877
5,654
6,554
2,054
966
1,928
16
1,041
219
107
3,528
203
652
7,283
11
1,387
5,772
65
2,508
7,587
8,189
2,698
1,339
2,204
5
1,417
300
69
4,219
235
903
8,318
18
1,269
102,606
127,060
154,011
37,924
47,105
.4.0 too
.. .
.
0.4.
OCOW4.WW. '
Ct.
= WWWVN .
MNIOtO..
100.O10 00W.NO100.0.000130034
0-4,4=0.N00010=0001033WN.WONWat,
Miscellaneous freight loading for the week of Dec. 12 totaled 200,379
cars, a decrease of 13,176 cars below the preceding week this year, 61,795
cars under the corresponding week in 1930 and 121,724 cars under the
same week in 1929.
Loading of merchandise less-than-carload lot freight totaled 197,558 cars,
a decrease of 5,015 cars below the preceding week this year, 21,447 cars below the corresponding week last year and 47,485 cars under the same
week two years ago.
Grain and grain products loading for the week totaled 30,179 cars, 2,480
ears below the preceding week this year, 9,353 cars below the corresponding
week last year, and 13,816 cars below the same week in 1929. In the
Western districts alone, grain and grain products loading for the week
ended on Dec. 12 totaled 19,478 cars,a decrease of 8,366 cars below the same
week last year.
Forest products loading totaled 19,084 ears, 1,218 cars below the preceding week this year. 14,978 cars under the same week in 1930, and 33,320
cars below the corresponding week two years ago.
Ore-loading amounted to 4,004 cars, an increase of 598 cars above the
week before, but 2,389 cars under the corresponding week last year and 4,864
cars under the same week in 1929.
Coal loading amounted to 130,982 cars, 885 cars above the preceding
week, but 18,091 cars below the corresponding week last year and 78,659
cars under the same week in 1929.
Coke loading amounted to 6,657 cars. 169 cars above the preceding
week this year, but 1,884 cars below the same week last year and 5,262
cars below the same week two years ago.
Live stock loading amounted to 24.691 cars, a decrease of 2,595 cars
below the preceding week this year, 882 cars below the same week last
year and 4,197 cars below tho same week two years ago. In the Western
districts alone, loading of live stock for the week ended on Dec. 12 totaled
19.609 cars, a decrease of 551 compared with the same week last year.
All districts reported reductions in the total loading of all commodities,
compared not only with the same week in 1930 but also with the same week
in 1929.
Loading of revenue freight in 1931 compared with the two previous years
follows:
1929.
1931.
1930.
4,518,609
3,490,542
4,246,552
Five weeks In January
3,797,183
2,835,680
3,506,899
Four weeks in February
3,837,736
2,939,817
3,515,733
Four weeks in March
3,989,142
2,985,719
Four weeks in April
3,618,960
5,182,402
Five weeks in May
3,739,477
4,593,449
4,291,881
Four weeks in June
2,991.749
3,718,983
4.160,078
Four weeks in July
2.930,767
3,555,610
5,600,706
Five weeks in August
3,747,284
4,671,829
4,542,289
in
September
2,907,953
3,725,686
Four weeks
5,751,645
3.813,456
4,751,349
Five weeks in October
3,817,920
2,619,705
3,191,342
Four weeks in November
933,309
636,366
787,072
Week ended Dec. 5
613.534
922,861
744.353
Week ended Dec. 12
Total
[vol.,.
FINANCIAL CHRONICLE
148
269
304
2,650
130
2,114
352
2,383
1,401
365
908
92
5,875
18,787
47
115
10,086
2,455
622
9,290
6,686
2,006
27
314
395
471
2,957
375
1,820
534
2,575
2,056
455
1,467
143
7,403
22,726
57
269
13,678
3,163
408
10.746
7,040
1,730
45
2,483
443
128
991
54
1,801
806
1,409
969
429
202
369
2,162
6,202
40
10:3
2,882
1,121
305
2.544
2.741
2,512
55
3,002
428
239
1,777
35
2.177
1,217
2,105
968
687
266
369
2,901
8,475
31
179
3,818
1,682
399
3,714
3,230
3,176
56
67,112
80,827
30,741
40,931
Group FlAlabama, Tenn.& Northern___
Atlanta, Birmingham & Coast._
A tl. & W P.-5533st RR.of Ala
Central of Georgia
Columbus & Greenville
Florida East Coast
Georgia
Georgia & Florida
Gulf hi °bile & Northern
Illinois Central System
Louisville & Nashville
Macon, Dublin & Savannah
Miestasippi Central
Mobile 4 Ohio
Nashville, Chattanooga & St.
New Orleans-Great Northern_
Tennessee central
Northwestern DistrictBelt Ry. at Chicago
Chicago & North Western
Chicago Great Western
Chic. Milw Si. Paul & Pacific
Chic. St Paul, Minn. & Ornah
Duluth, Mesabi & Northern_
Duluth, South Shore & Atlanti
Flinn. Joliet & Eastern
Ft. Dodge, Des. M.& Bonne
Great Northern
Green Bay & Western
Minneapolis & St Louis
Minn. St Paul & 8.8. Marie_
Northern Pacific
Spokane, Portland & SeattleTotal
Central Western District-hien. Top.& Santa Fe System
Bingham & Garfield
Chicago & Alton (Alton)
Chicago, Burlington & Quincy
Chicago, Rock Island & Pacill
Chicago & Eastern Illinois-.
Colorado & Southern
Denver & Rio Grande Western
Denver & Salt Lake
Port Worth & Denver City-Northwestern Pacific
Peoria & Pekin Union
(1. P.(Pacific)
at Joseph & Grand Island
Toledo, Peoria & western
Union Paelfle System
Utah
Western Pacific
Total
Southwest DistrictAltos & Southern
Burlington-Roek Island
Fort Smith & Western
Gulf Coast !does
Houston & Brazos Valley
International-Great Northern
Kansas. Oklahoma & Gulf
Kansas City Southern
Louisiana & Arkamae
Litchfield & Madison
Midland Faller
Missouri & North Arkansas
M teriourl-Kruman-Tezas Lines_
Mipaourt Pacific
Natobes & Southern
Quanah Act°,& Pacific
91 Louis-San Francisco
St. Louis Southwestern
San Antonio, Uvalde & Gulf. __
Southern Pao. In Texas & La
Texan & Pacific
Terminal RR. Aaso. of St. Louis
Weatherford MID. Wells & Nor
Total
53,831
FINANCIAL CHRONICLE
DEC. 26 1931.]
November Chain Store Sales Lower.
According to a compilation by Merrill, Lynch & Co. of
this city, 46 chain store companies, including three mailorder concerns, show total sales for the first eleven months
of 1931 of $3,414,607,795, against sales of $3,603,934,415
in the corresponding period of 1930, a decrease of 5.25%.
Three mail-order companies alone show sales for the first
eleven months of 1931 of $541,506,330, against $627,680,160
in the first eleven months of 1930, a decrease of 13.72%.
Excluding the mail-order concerns, 43 companies show sales
for eleven months of 1931 of $2,873,101,465, against sales
of $2,976,254,265 in the same period of 1930, a decrease
of 3.46%.
Results for November 1931 as reported by 46 chain store
companies, including three mail-order concerns, show total
sales of $293,385,538, against $325,565,395 in November
1930, a decrease of 9.88%. The three mail-order concerns
alone show sales for November of $47,782,233, against
$57,978,154 in November 1930, a decrease of 17.58%.
Excluding the mail-order concerns, 43 chain store companies
show sales for November 1931 of $245,603,305, against
$267,587,241 in November 1930, a decrease of 8.21%. A
comparative table follows:
Month of November.
1931.
I
1930.
1 Dec.
First Eleven Months.
1930.
'Dec.
$
'
$
Gt. Atl. & Pao. Tea a74,702,978a79,824,0931%
6. 6946,400,491 6980,999,559 3.5
626,828.020 632,243,424 16.8 8314,041,553 8351,306,974 10.6
Sears Roebuck
Safeway Stores (IncludingMacMarr) 22,603,063 24,484,983 7.6 260.972,406 278,615.368 6.3
F. W. Woolworth.. 22.004,960 24.077,890 8. 242,953,226 246,962.431 1.6
Montgomery Ward. 18.403,376 22,401,426 17.8 197,462,310 243,647,441 18.9
KrogerGroc.&Bak. c17,114,181c19,998,707 14.4 h226,800,797 h243,137,115 6.7
16,493,495 18,939,973 12.9 152,426.832 169.236,142 9.9
J. C. Penney
S. S. Kresge Co.-- 11,220,287 12,503,020 10.2 123,612.060 126,371,649 2.1
a9,935,594 a11,132.261 10.7 6123,167.325 1129.482,650 4.8
American Stores_
First Nat'l Stores
8,085,105 8,220.055 1.6 96,610,818 98,926,538 2.3
W. T. Grant
6,485,257 6,677,427 2.8 63,186,613 59,253,644 x6.6
National Tea Co_ _ _ 5,752,158 7,082,372 18.7 70,183,338
77,828,227 9.8
5,586,7385,528,389 x1.1
S. H. Kress Co
57,820,828 57,222.519 11.0
3,987,740 4,080.413 2.2 49,460,868 46,920.365 x5.4
Waigreen
36,413.495 36,440,678 0.1
3,469,424 3,617,162 4.1
McCrory Stores_ _
Grand Union
d3,332,776 d3,474,204 4.0 131,817,533 132,690,378 2.6
H. C. Bohack
a2.814,366 a2,806,275 x0.3 132,112,707 129,221,719 x9.8
Nat. Miss Hess.-- 2,550,837 3,333,304 23.4 30.002.461
32,725,745 8.3
J. J. Newberry.... 2,529,703 2,606,570 2.9 25,830,465 24,697,747 14.5
Daniel Reeves
2,435,888 2.698,557 9.7 28,753,723 31,313,202 8.1
Dominion Stores.-- e2,251,736 e2,343,978 3.9 23,218,445 22,046,756 x5.3
22,139,313 24,274,099 8.8
Childs
1,979,758 2,075,268 4.6
1,913,094 2.096,836 8.8 22,309,357 21,473,613 13.9
Lerner Stores
1,769,301 2,081,370 14.9 18,199.071
McLellan Stores_ _
20,111,220 9.5
Interstate Dept.St. 1,746.684 2,002,121 12.7 18,759,907 18,728,1231 10.1
1,692,326 2,506,374 32.4 23,736,332 25,834,086 8.1
Melville Shoe
G.C. Murphy
1.578,246 1,579,476 0.08
16,239.22
14,327.676 113.3
1,407,496 1,403,020 x0.3 15,695,277
Peoples Drug Stor
15,070,663 14.1
Consolidated Retail 1,398,644 1,631,750 14.2 17,154,856
19,779,181 13.2
1,252,070 1,226,302 x2.1
Waldorf System_ _
14,201,023
14,558,275 2.4
1,194,527 1,480,822 19.3
Nelsner Bros
13,609,291
13,481,266 10.9
Lane Bryant
1,094,008 1,361,984 19.7 14,121,86
15,757,291 10.4
Western Auto Stipp.
(Kansas City)... 1,062,812 1,271,868 16.4 11,455,088
12,828.921 10.7
Jewel Tea
81,022,318 a1,217,652 16e, 12.492,203
14,255,073 12.3
Schiff Co
788.153
820.839 3.91
9.051,662
8.757,083 13.3
Bickford's
834,990
536,999x18.2
7,196,54
5.469.599,31.5
Kline Bros
506.479
501,310 x1.0
4,647,93
4.029,942,15.3
Bros
Edison
464,837
444,738 14.5
5,741,160
4,247,377,35.1
Winn & Lovett
438,607
411,57 16.5
4,664,342
4,961,0121 5.9
Exchange Buffet
381,494
456,939 16.5
4,813,052
5,771.460 16.6
Sally Frocks
372,689
351,044 16.1
4,107,005
4,214,414' 2.6
M.H. Fishman....
208,660
206,70 x0.9
2.186,583
1,852,748,18,0
208,537
Nat'l Shirt Shops
286,56 27.2
3,056,570
3,707,606 17.5
196,363
Kaybee Stores
231,372 15.1
1,737,673
•
1,759,688I 9.6
113,658
Morison Else.SuPP
205,822 4411
1,590,476
1,372,105 1.102.155 x24.
Loft, Inc
12,453,677
7.983.005 x56.0
Total 46 chain sto
& mall order cos_ 293,385,538325,565,395 9.883.414,607,7953.6e3,934,425 5.25
3 mall order cos.- 47,782.233 57,978,15417.58 641,506.330 627,680.16013.72
43 chain store cos-- 245,603,305267,587,2411 8.212,873.101.4652.976,254.265 3.46
a Four weeks to Nov. 28. I, Four weeks to Dec. 3. c Four weeks to Dee, 5.
d Five weeks to Dec. 5. e Five weeks to Nov. 28. f Year to Nov. 28. g45
weeks to Dec.3. h 48 weeks to Deo. 5. iYeartoDeo.5. j 47 weeks to Nov.28.
k 48 weeks to Nov. 28. x Decrease.
Decline in Wholesale Prices, According to National
Fertilizer Association, Not So Sharp During Week
Ended Dec. 19.
The decline in wholesale prices during the week ended
Dec. 19 was not as large as that shown for each of the
immediately preceding three weeks. The wholesale price
index of the National Fertilizer Association declined only
three fractional points during the week ended Dec. 19,
whereas a decline of seven fractional points was noted for
the preceding week and a decline of eight fractional points
two weeks ago. The latest index number, 65.0, is at a
record low point. A month ago the index stood at 67.5,
while at this time last year it was 79.1. The index number
100 represents the average for the three years 1926-28.
Based on 1913 as 100, the index number is 90.9. The
Association continues Dec. 21:
Of the 14 groups constituting the index, four advanced, eight declined
and two showed no change during the latest week. The groups which
advanced were grains, feeds and livestock, metals, chemicals and drugs
and fertilizer materials. The declining groups were fats and oils, foods,
mixed fertilizer, agricultural implements, automobiles, fuel, house furnishings and the group of miscellaneous commodities.
4221
During the latest week advances were shown in the prices for 18 commodities. This is the largest number of advances shown for the last several
weeks. Lower prices were shown for 39 commodities. Higher prices were
noted for wheat, corn, oats, cotton, hogs, copper, tin, silver, alcohol and
creosote oil. Among the commodities showing lower prices were lard,
butter, eggs, bread, potatoes, apples, cattle, pig iron, lead, petroleum,
coffee and rubber.
The index numbers and comparative weights for the 14 groups are
shown below.
WEEKLY WHOLESALE PRICE INDEX-BASED ON 476 COMMODITY
PRICES (1926-1928=100).
Latest
Per Cent
Each Group
Bears to the
Total Index.
23.2
16.0
12.8
10.1
8.5
8.7
6.6
6.2
4.0
3.8
1.0
0.4
0.4
0.3
100.0
Croup.
Foods
Fuel
Grains, feeds and livestock
Textiles
Miscellaneous commodities
Automobiles
Building materials
Metals
House furnishings
Fats and oils
Chemicals and drugs
Fertilizer materials
Mixed fertilizer
Agricultural implements
All groups combined
Week
Pre-
Dec. 19
1931.
Ceding
Month
Ago.
Year
Ago.
67.9
59.0
49.8
49.4
86.7
89.1
73.4
74.8
84.3
55.2
88.9
70.6
79.7
92.7
69.3
59.8
49.1
49.4
66.8
89.3
73.4
73.7
84.4
56.2
86.6
70.5
80.2
93.0
73.5
61.6
54.3
50.4
66.1
89.3
75.0
74.8
84.4
60.4
86.7
70.5
80.2
93.0
84.2
75.0
73.8
65.1
75.7
89.4
84.4
81.3
96.6
65.8
94.6
83.7
93.5
95.6
65.0
65.3
67.5
79.1
Week.
Electric Output in the United States During the Week
Ended Dec. 19 1931 Showed a Decline of 5.3% As
Compared with the Same Period Last Year.
The production of electricity by the electric light and
power industry of the United States for the week ended
Saturday, Dec. 19, was 1,675,653,000 kwh., according to
the National Electric Light Association. The Atlantic
seaboard shows a decrease of 2.9% from the corresponding
week last year, and New England, taken alone, shows a
decrease of 2%. The central industrial region, outlined by
Buffalo, Pittsburgh, Cincinnati, St. Louis and Milwaukee,
registers, as a whole, a decrease of 9.4%; while the Chicago
district, alone, shows a decrease of 8.4%. The Pacific
Coast shows a decline of 2% below last year.
Arranged in tabular form, the output in kilowatt hours of
the light and power companies for recent weeks and by
calendar months since the beginning of the year, according
to the National Electric Light Association, is as follows:
1928.
1931
Under
1930.
Weeks Ended
1931.
1930.
1929.
Sept. 5.-Sept. 12---Sept. 19---Sept. 26---Oct. 3
Oct. 10---Oct. 17
Oct. 24---.
Oct. 31
Nov. 7-_
Nov. 14
Nov. 21
Nov. 28---.
Dec. 5
Dec. 12---Dec. 19---Months.
January ---.
February --March
April
May
June
July
August
September..
1,635,623,000
1.582,267,000
1.662.660.000
1.660,204.000
1,645,587,000
1.653,369,000
1.656,051,000
1.646,531.000
1.651,792,000
1,628,147.000
1,623,151,000
1,655,051,000
1,599,900,000
1.671.4aa.000
1.671.717,000
1.675,653,000
1,630,081.000
1,726.800.000
1.722.059.000
1,714,201.000
1.711,123,000
1,723,876,000
1,729,377,000
1,747,3.53,000
1.741.295,000
1.728,210,000
1,712,727,000
1.721.501,000
1,671,787,000
1.7411.934,000
1.748.109.000
1,769,944,000
1.674.588,000
1,806,259,000
1,792,131,000
1,777,854.000
1.819,276.000
1,806,403.000
1,798,633,000
1.824,160,000
1.815,749.000
1,798,164.000
1,793,584,000
1,818,169,000
1,718,002.000
1,8041.275(100
1,840.863.000
1,880,021,000
1,484,000.000 1,4.1%
1,604.000,000 1
1,614.000.000 3.4%
1,623,000.000 3.2%
1,637.000.000 3.8%
1,651,000.000 4.1%
1,665.000.000 4.2%
1.678.000.000 5.8%
1.688,000.000 5.1%
1,697,000.000 5.8%
1,696,000.000 5.2%
1,701,000.000 3.9%
1.619.000.000 4.3%
1.708.000.000 4.3%
1,716.000.000 4.4%
1.710,000.000 5.3%
7,439,888,000
6.705,564,000
7,381,004.000
7,193.691.000
7,183,341,000
7,057,029,000
7,222,869.000
7,144.840,000
7,042.783,000
9RA 97a nnn
8,021,749,000
7,066,788,000
7,580,333.000
7,416,191,000
7.494.807,000
7,239,697.000
7,363,730.000
7.391,196,000
7,337,106,000
7 715 7R7 Ann
7,585,334.000
6,850,855.000
7,380,263.000
7,285.359,000
7,486,635,000
7,220,279.000
7,484.727.000
7,773,878,000
7,523,395,000
a I TA dfrin ono
6,637.064.000
6,289,337.000
6,632.542,000
6.256,581,000
6,552,575.000
6,454,379,000
6.570,110.000
6,944.976,000
6,724.148.000
7 MO 489 ROO
7.3%
5.1%
2.6%
3.0%
4.2%
2.5%
1.9%
3.3%
4.0%
5 no,
Because of Irregularity of Labor Day holiday, change Is calculated for the
first two weeks of September. Y ReVi=ed.
Note.-The monthly figures shown above are based on reports covering 92% of
the electric light and power industry and the weekly figures are based on 70%.
Little Change in Industrial Activity in Philadelphia
Federal Reserve District During October-Seasonal
Gains Absent.
Industrial activity showed little change during October,
although seasonal gains generally are characteristic of that
month, says the Dec. 1 "Business Review" of the Phila.
delphia Federal Reserve Bank. We further quote from the
"Review" as follows:
Manufacturing was slightly less active than was to be expected and
in early November registered customary declines. Awards for residential
and factory buildings increased and the gain in contracts for public works
was exceptionally large; nevertheless, payrolls failed to show proportionate
increases.
Lately even the awards have declined sharply. Production
of coal rose in October but declined in November. For the year to date,
Industrial output was the lowest shown for the same period of the past
nine years, although agricultural yields compared favorably with the
average. Retail sales in October increased irss than usual and in early
November continued below the usual rate of expansion. Wholesale
business declined. The general level of commodity prices decreased in
October
and showed little change in the first three weeks of November.
The demand for currency over the past month was far less active
than
in the month preceding, although payments did exceed receipts to
some
4222
FINANCIAL CHRONICLE
extent and contributed to a rise of 10,000,000 in borrowings from the
Reserve Bank. The Reserve ratio of this bank changed little. Member
banks report a further decline in loans to customers; these loans are materially lower than a year ago, reflecting in a measure declines in business
activity and in prices.
Manufacturing.
While some seasonal improvement in manufacturing activity occurred
In October, sales and production in the aggregate failed to measure up to the
volume of business typical for that month. Orders for manufactures
reflected chiefly replacement demands, although those factories whose
products are made principally for equipment purposes reported the continuance of unusually slack business. Prices of finished products declined
a little further, but the drop in quotations for raw materials and semimanufactured products was relatively greater.
Unfilled orders for manufactured products in early November showed a
reduction from a month ago with the exception of such textiles as hosiery
and cotton yarns. In comparison with last year, advance business continues materially smaller. Stocks of finished goods declined further and
were almost uniformly smaller than a year before. This also appears to
be true of the country as a whole with respect to manufactured goods but
not raw materials which show accumulation when contrasted with inventories in recent years.
Factory employment in Pennsylvania showed a drop of 1%, while wage
payments a gain of 2-10ths of 1% from September to October. Decreases
in other industrial States, such as Delaware, Massachusetts, New Zork
and Illinois were much greater than in Pennsylvania, ranging from 3 to8%
In employment and from 5 to 12% in payrolls. Indexes for the country
as a whole show a decrease of3% in employment and payrolls of the manufacturing industry. In comparison with a year ago, the Pennsylvania
factory employment index was 17% smaller and the payroll index 33% less.
Production activity showed smaller than the usual gain, so that the
seasonally adjusted index declined 4-10ths of 1% from September as compared with the decline of5% in the National output of manufactures. The
district index was 20% and the National index 13% lower than in October
1930.
More than seasonal gains occurred in the manufacturing groups comprising textile products, transportation equipment, foods, tobacco and
radio and musical instruments. On the contrary, larger than usual recessions took place in the output of metals, chemicals, leather products,
building materials and paper and printing.
Among individual textile products, the output of silk goods, carpets
and rugs, cotton yarns and men's clothing cut in Philadelphia showed
more than customary gains. This was also true of raw wool takings by
carpet and other mills; National deliveries of wool fibers to factories declined
15%. Production of hosiery and cotton goods increased by smaller than
the seasonal amount, while that of knit underwear decreased sharply
contrary to the usual tendency.
In the food group, gains were reported for bread and bakery products,
sugar and slaughterings of hogs,sheep and cattle. Canning and preserving,
Ice cream and the number of calves slaughtered declined more than is to
be expected. The output of cigars did not increase EIS much as it should
In October, while manufactured tobacco showed an exceptional gain.
Activity in the metal industry continued at an extremely low level and
further decreases were reported for steel works and rolling mills, and iron
castings, while electrical apparatus, and steel castings, registered rather
small gains. Output of pig iron was greater than seasonal. In the transportation equipment group, operations of shipbuilding plants showed the
sharpest gain, and the output of motor vehicles the largest relative decline.
The percentage decline in the output of shoes was nearly four times as
great as is usual for October; the relative drop in the country's shoe production was even greater. Prices of shoes at wholesale declined fractionally from September but remained considerably above the pre-war level.
This was also true of leather. Hides and skins, the market for which is
fairly quiet, were quoted at appreciably lower prices than in September,
and the average was substantially below that of 1913.
Petroleum refineries showed little variation in output. Explosives increased seasonally, while the output of by-product coke remained stationary
instead of moving slightly upward. Production of paper and wood pulp
increased, while the rate of activity of printing and publishing decreased.
The output of lumber and planing mills showed gains contrary to the
usual seasonal tendency, while that of brick registered virtually no change.
As a result of slackened demand, production and shipment of cement
showed an exceptional decline in November; production was the lowest 111
the past nine years, when allowance for seasonal changes is made. Cement
stocks, while decreasing in the month, exceeded those of a year ago. Other
building materials, such as paints and varnishes, pottery, elate and Plumbing supplies, have displayed weakness with respect to prices and deman(
since the middle of last month.
The decline of5% in the use of electrical energy by industries was smaller
than usual, so that the seasonally adjusted index rose about 4% from
September and was slightly higher than in October 1930. The increase
of 4% in the total output of electricity was somewhat smaller than was
to be expected.
Industrial Situation in Illinois, Reviewed by Industries, During November 1931.
Industrial employment decreased 3.3% and payrolls 5.2%
in Illinois between Oct. 15 and Nov. 15, according to the
reports of 1,410 Illinois industrial establishments, says
Howard B. Myers, Chief of the Division of Statistics and
Research of the Illinois Department of Labor, in reviewing
the industrial situation in Illinois. Under date of Dec. 19
Mr. Myers continues:
[VOL. 133.
ber 1929. Payrolls in these factories have declined 32.5% and 57.4%,
respectively, during the same periods.
With the exception of the paper and printing industries, which maintained a stationary employment volume, each of the main manufacturing
groups made drastic curtailments in both employment and payrolls between Oct. 15 and Nov. 15. Leaving out of consideration the miscellaneous manufacturing group, which is represented only by three establishments, the decreases in employment ranged from 3.2% in chemicals,
oils and paints to 25.4% in furs and leather goods. Payroll reductions
ranged from 4.5% in the paper and printing group to 33.9% in furs and
leather goods group.
The losses in furs and leather goods group were caused mainly by the
shoe manufacturing industry. Twenty reporting boot and shoe factories
laid off 29.3% of their workers and reduced wage payments 44.0% during the period. Seven tanning factories reported a 6.0% decrease in
number of workers and a 10.2% decrease in wage payments. Miscellaneous leather goods industries also contributed to the reductions, while
furs and fur goods registered an increase. Employment in the group as a
whole has dropped 37.3% since last August, after registering steady increases during the first eight months of the year which totaled 26.0%.
The metals, machinery and conveyances gioup, represented by 397 reporting establishments, reduced employment 4.2% and payrolls 9.0%
from October to November. Four of the 13 industry classifications in this
group increased employment and three of these also showed larger payrolls.
The three industries in which both employment and payroll gains were
reported were tools and cutlery, agricultural implements and instruments
and appliances. Agricultural implements plants, which are just beginning to show signs of resumed activity, are operating with slightly more
than one-half the number of workers employed a year ago.
The most marked decreases reported in this group were in the manufacture of cars and locomotives and autos and accessories. The former decreased employment 10.6% and payrolls 19.2%, while the latter registered
declines of 17.8% and 11.8% in these items. Twenty-six establishments
In the metals, machinery and conveyances group reported that they had
reduced wage rates during the period of this report. These reductions
averaged approximately 10%. Weekly earnings for the group averaged
$20.37 as compared with $21.49 a month earlier.
The stone, clay and glass products group reduced employment 5.9%
and payrolls 8.5%. Every industry classification shared in the declines.
Weekly earnings for the group averaged $20.52 against $21.39 in October.
The manufacture of pianos and musical instruments escaped the general
downward trend in the wood products group, but losses in other lines
brought down employment 3.5% and payrolls 9.2% below the preceding
month for the group as a whole. Average weekly wages dropped from
$19.02 to $17.53.
The chemicals, oils and paints group decreased employment 3.2% and
payrolls 6.8%, with all the reporting industries contributing to the declines.
Average weekly earnings decreased from $24.46 to $23.56. The printing
and paper goods group as a whole showed practically no change in volume
of employment, increases in newspapers and periodicals, in edition book
binding, and lithographing and engraving, offsetting losses in the manufacture of paper goods and in job printing. Payrolls, however, declined
for all industries except edition book binding, resulting in a total decrease
of 4.5% for the group. Average weekly earnings declined to $28.77 from
$30.07 the month before.
All textile industries reduced both employment and payrolls from October
levels, the knit goods industry experiencing the largest percentage reductions. Losses of 6.4% in employment and 12.7% in payrolls were shown
for the group as a whole. Weekly earnings averaged $16.08 as compared
with $16.89 a month earlier. The clothing and millinery group decreased
employment 6.5% and payrolls 18.4%, reducing average weekly earnings
from $16.33 in October to $14.27 in November.
In the food products group, several industries showed increases in employment, but payrolls went down substantially in au reporting lines.
The payroll decreases ranged from 2.0% for bread and other bakery products to 35.4% for fruit and vegetable canning. The industries in which
employment increased during the month were flour, feed and cereals.
slaughtering and meat packing, beverages and cigars and other tobacco
products. Employment decreased 3.7% for the group and payrolls dedined 8.1%. Weekly earnings of the workers averaged $24.27 as against
$25.29 in October.
The slight decline of one-tenth of 1% in employment reported by 343
non-manufacturing establishments for the October to November period,
compares with increases of two-tenths of 1% reported for November 1930,
and four-tenths of 1% reported for November 1929. Non-manufacturing
payrolls increased two tenths of 1% this November as compared with gains
of four-tenths of 1% a year ago and 2.4% two years ago.
Wholesale and retail trade concerns added two-tenths of 1% more
workers while reducing wage payments 1.4%. Gains of 4.7% in employment and 3.0% in payrolls by 44 department stores were counteracted by
the decreases in all other lines, wholesale dry goods, wholesale groceries,
mail order houses, milk distribution, and metal jobbing. Weekly earnings for the group averaged $26.10 as against $26.54 the preceding month.
The services group, including hotels and restaurants, and laundering.
cleaning and dyeing establishments, experienced decreases of three-tenths
of 1% in employment and six-tenths of 1% in payrolls. Weekly earnings
In this group averaged $18.47 against $18.57 a month earlier.
Public utility concerns increased employment one-tenth of 1% and payrolls nine-tenths of 1%. Average weekly earnings for the group rose from
$31.44 to $31.79. Thirty-seven coal mines reported declines of threetenths of 1% in employment and 6.0% in payrolls. Operating schedules
in these mines decreased considerably from October, and weekly earnings
fell from an average of $20.22 to $19.43.
Employment declined in the building and contracting group, although
operating schedules and payrolls registered increases. Seventy-six reporting concerns experienced a reduction of 3.7% in number of men employed but an increase of 9.8% in total wage payments. Average weekly
earnings were $38.70 in November, compared with $34.49 in October.
Average weekly earnings for all reporting industries declined 52 centa,
falling from $24.54 in October to $24.02 in November. Such earnings
decreased from $22.16 to $21.12 for the manufacturing industries, and
increased from $28.32 to $28.47 for the non-manufacturing industries.
Decreases of 5.2% In employment and 9.5% in payrolls were reported by
the manufacturing industries. The non-manufacturing industries registered a loss of one-tenth of 1% in employment but a gain of two-tenths of
1% in payrolls during the period.
Nominal man-hours of work reported by 1,058 establishments showed a
4.5% decline from the preceding month. Manufacturing industries
Mr. Myers's analysis by cities follows:
showed a 7.2% decrease in nominal man-hours while non-manufacturing
Manufacturing activity continued to decline throughout the State durindustries showed an increase of 1.7%•
The severe curtailment in industrial activity revealed by the November ing the period Oct. 15 to Nov. 15, employment decreasing 5.2% and payreports brings employment and payrolls to the lowest levels yet recorded. rolls 9.5%. These are the largest employment and payroll declines reported
The all-industry employment index of 68.1 for November 1931 is 16.7% for any month since July 1930. Only two of the 15 cities for which figures
below the index of 81.8 for November 1930 and 33.2% below the index of are tabulated separately exhibited an improvement during the period
101.9 for November 1929. The November 1931 payroll index, 52.3, is covered by the reports. These were Danville and Sterling-Rock Falls.
Decreases in number of factory workers employed ranged from 1.3%
25.2% below the level of a year ago and 45.9% below two years ago.
Manufacturing industries have experienced even sharper losses during in Peoria to 22.4% in Springfield. In payrolls, losses ranged from 2.1% in
the past two years than have all industries combined. Employment in Peoria to 30.8% in Bloomington. Chicago factories fared better during
factories has decreased 19.8% during the past year and 39.3% since Nevem- this period than those located outside Chicago, the latter curtailing cm-
Mac. 26 1931.]
FINANCIAL CHRONICLE
ployment 9.0% and payrolls 13.9%. compared with reductions of 2.8%
In employment and 7.2% in payrolls for reporting establishments in Chicago.
Outdoor activities also declined in a number of the reporting cities, due to
the fact that existing construction projects are being completed, while few
now projects are being undertaken. The demand for farm labor, which
has been greatly below normal all fall, showed a further decline during
November. At the free employment offices of the State, however, the
so-called unemployment ratio, the ratio of number of persons registered to
every 100 positions open, dropped from 251.0 for October to 207.9 for
November. The decline in this ratio may have been due to some extent
to the efforts on the part of free employment offices and relief agencies to
secure work for the unemployed.
Aurora.-Twenty-two factories reporting for this city decreased employment 6.0% and payrolls 15.3% during the October to November
period. The only industry for which an increase in employment was reported was miscellaneous chemicals. The printing and paper goods group,
although decreasing employment, increased total wage payments. Registrations for work at the free employment office decreased in ratio to number of jobs available, registering 222.9 In November as against 255.7
in
October. A contract has been awarded for the construction of a
new
post office building at an estimated cost of $208.000.
Bloomington.-Eleven factories reporting for this city decreased employment 22.1% and payrolls 30.8%, with all industries contributing
to
the sharp curtailments. The local railroad shops closed Nov. 14 and
are
not expected to reopen until Dec. 16. Several large building projects
are
nearly completed but work on the new post office will continue
until spring.
The unemployment ratio increased slightly,from 127.6 to 128.4.
Chicogo.-A new low level in employment and payrolls was reached
by
Chicago factories in November. Reports from 551 factories
show declines
of 2.8% in employment and 7.2% in payrolls from the
October levels.
Except for a slight employment increase in the paper and
printing group,
and a somewhat more substantial gain recorded by the
stone, clay and glass
products group, reductions were general throughout
the reporting groups.
Leather products, textiles, and clothing experienced severe
curtailments.
Employment declined 2.7% in the metal industries
and 3.6% in food products establishments. Average weekly earnings of
those employed were
$22.90, as compared with $24.09 the preceding month
and $27.61 a year
ago. The ratio of registrations for work at the free
employment offices to
each 100 positions available showed a considerable
decrease, standing at
267.6 for November as against 372.2 in October.
Cicero.-Decreases of 3.3% in employment and 7.7%
in payrolls were
reported by 11 factories. The unemployment
ratio registered 259.3
for November as against 269.7 for October.
Building and outdoor activities were below normal,
Danville.-Employment remained unchanged while
payrolls increased
3.0% in nine reporting factories. The payroll
increase was due mainly to
Increased activity by a reporting brick yard.
The free employment office
reported that there was a good demand for
corn-shuckers during the month;
also that a strike was going on at a
small coal mine employing about 20
workers. The unemployment ratio was
230.9 as against 224.1 for the
preceding month.
Decatur.-Losses of 5.5% in employment
and 3.2% in Payrolls were
reported by 19 factories of this city. Reports
stated that the local railroad car shops worked 11 days In November.
The unemployment ratio
at the free employment office registered
213.8 as compared with 208.5
the preceding month. The local park board is
using 100 men placed
through the free employment office and the Mayor's
Employment Committee, changing crews every 12 days In order to give
work to the greatest
possible number of men.
East St. Louis.-Decreases of 7.0% in
employment and 12.7% in Payrolls were reported by 23 factories. The
employment decline was the
largest since November 1930, at which time
both employment and Payrolls registered declines of 11.4%. The
loss in payrolls was the largest on
record. Building and outdoor work has
slowed down considerably, and
the unemployment ratio Increased from
119.6 in October to 122.9 in
November.
Joliet.-Twenty-slx reporting factories laid
off 1.8% of their workers and
curtailed payrolls 12.5%. The metals
industry contributed heavily to
these losses. The free employment office
reported 269.4 registrations for
work to every 100 places available. In October
this ratio was 285.8.
Moline.-Decreases in 17 reporting factories
totaled 11.9% in number
of wage earners and 17.4% in total wage
payments. A large printing
concern escaped the general downward trend
in employment but not in
payrolls. A report from the free employment
office states that several
farm Implement plants reopened on a part-time
basis with a small number
of men during the latter half of November.
Peoria.-Decreases of 1.3% in employment
and 2.1% in payrolls reported by 34 factories reversed the upward trend
of the two preceding
months. Twelve metal industry concerns,
however, continued the improvement noted during the past two months.
At the free employment
office the unemployment ratio increased to 152.4
from 133.1 in October.
Quincy.-Employment decreased 3.8% and
payrolls 13.2% in 15 factories of this city. Increases in both employment
and total wage payments
were shown for the paper and printing and food
products groups. The
unemployment ratio dropped sharply, from 188.9 in
October to 128.1 in
November.
Rockford.-Forty-three factories reported decreases of 2.7%
in employment and 3.4% in payrolls. All industry groups
except stone, clay and
glass contributed to the curtailments. Building
and construction work
decreased from the preceding month and the
unemployment ratio increased slightly from 160.2 to 161.3.
Rock Island.-Employment decreased more
than payrolls in reporting
factories of this city. 11 plants registering a decline
of 10.5% in the former
item as compared with 4.7% In the latter.
The volume of outdoor work
is decreasing. The unemployment ratio rose
to 271.9 from 215.0, as recorded for October.
Springfield.-Suspension of operations in a
large shoe manufacturing
plant and substantial curtailments in the
metals
about a total decrease of 22.4% in employment industry group brought
and 23.6% in payrolls for
eight reporting factories. The paper and
printing industry registered increases in both employment and payrolls.
Outdoor work is slowing down
seasonally and the unemployment ratio
increased to 138.3 from 131.2 the
preceding month.
Sterling-Rock Falts.-Increases of 16.1% in
employment and 15.2% in
payrolls were reported by 11 factories of
these cities. The increases were
due almost entirely to the re-employment of
nearly 100 men by an agricultural implements establishment.
All Other Calm-This group of cities, represented
by 256 reporting factories, decreased employment 11.3% and payrolls
17.7% during the Period
Oct. 15 to Nov. 15. All industries contributed
to the decline, the drop
in employment ranging from 2.1% in wood products to
as high as 32.0%
in furs and leather goods. Payroll losses ranged from 5.8%
in chemicals,
oils and paints to 48.7% in furs and leather goods. The
metal industries
showed decreases of 9.0% and 15.9%, respectively, In
employment and
payrolls.
4223
Statistics issued by Mr. Myers follow:
couRsE OF EMPLOYMENT AND EARNINGS IN ILLINOIS DURING
OCTOBER 1931.
Employment.
Earnings (Payroll).
Index of
Total
Average
Per Cent. Employment
Earnings
Weekly
(Average
Change
Industries.
Per Cent.
Earnings!
from a 1925-27=100). of Chge. Nov. 1931.
Month
from
Ago. Nov. Od. Nov. October
Fe1931. 1931. 1930. 1931. Males. males.
All industries
-3.3 68.1 70.4 81.8 -5.2 526.05 516.25
All manufacturing industries
-5.2 62.3 65.7 77.7 -9.5 23.39 13.58
Stone, clay, glass
-5.9 60.4 53.6 76.1 -8.5 22.13 11.37
Miscellaneous stone-mineral
-2.7 56.3 57.9 73.1 -8.8 23.04 15.73
Lime-cement-plaster
-16.1 41.4 49.3 76.6 -20.0 23.78 (9
Brick-tlle-pottery
-8.6 36.3 39.7 62.6 -7.7 19.54 (9
Glass
-3.6 72.2 74.9 97.8 -6.1 22.95 11.30
Metals-machinery-conveyances_ -4.2 58.0 60.5 78.7 -9.0 21.21 14.54
Iron and steel
-3.9 69.4 72.2 94.7 -7.7 18.07 11.16
Sheet metal work-hardware._ -2.7 64.9 66.7 77.4 -8.6 18.92 11.47
Tools-cutlery
+19.0 56.2 46.4 66.7 +2.0 18.42 13.53
Cooking dr heating apparatus_ -6.9 63.6 68.3 88.6 -22.0 17.37 11.02
Brass-copper-tinc and other
-1.0 66.0 66.7 82.4 -3.7 22.37 11.21
Care-locomotives
-10.6 12.8 14.3 19.0 -19.2 17.92 (9
Autos-accessories
-17.8 58.1 70.7 67.4 -11.8 19.83 12.43
Machinery
-0.6 58.5 68.9 77.7 -4.8 21.39 11.19
Electrical apparatus
-4.7 58.9 61.8 80.2 -8.3 28.86 18.04
Agricultural implements
+0.9 43.4 43.0 80.6 +4.4 18.86 (9
Instruments and applMnces
+0.9 61.6 51.1 66.7 +1.4 27.82 15.28
Watches-jewelry
-2.5 64.4 66.1 84.9 -11.4 20.57 9.25
All other
+0.6-------------24.5 20.77 (9
Wood products
-3.5 44.6 46.2 67.3 -9.2 16.99 8.96
Saw-planing mills
-5.5 43.0 45.5 57. -20.8 19.38 (9
Furniture-cabinet work
-1.5 47.6 48.3 62. -10.1 16.31 9.25
Pianos-musical instruments
+3.0 26.7 25.9 42.
+3.5 19.80 (9
Miscellaneous wood products_ -9.8 47.5 52.7 54.
-0.4 16.53 8.45
-25.4 62.5 83.8 74. -33.9 20.38 9.25
Furs and leather goods
Leather
-6.0 100.3 106.7 81. -10.2 24.24 11.85
+3.2 108.8 105.4 124.
Furs-fur goods
+1.8 (.1
(*)
-29.3 58.8 83.1 76.1 -44.0 12.95 7.63
Boots and shoes
Miscellaneous leather goods-. -19.6 30.1 37.4 43.2 -29.7 21.16 11.63
-3.2 76.9 79.4 80.1 -6.8 25.87 12.38
Chemicals-olls-Paints
Drugs-Chemicals
-0.8 68.0 68.5 62.8 -3.0 24 36 13.34
Paints-dyes-colors
-3.1 71.4 73.7 82.3 -4.9 25.31 14.58
Mineral and vegetable oil
-1.4 77.1 78.2 80.5 -4.6 28.59 13.54
Miscellaneous chemicals
-7.6 77.4 83.8 82.4 -14.8 22.43 9.18
Printing and paper goods
+0.0 82.3 82.3 96.2 -4.5 32.78 15.11
Paper boxes-bags-tubes
--3.7 78.4 81.4 84.7 -6.3 24.17 13.4)
miscellaneous paper goods__ -0.8 83.3 84.0 91.5 -4.5 28.42 14.31
-2.8 61.1 62.9 79.7 -14.2 29.89 14.81
Job printing
Newspapers-periodicals
+3.9 92.3 88.8 95.2 -1.5 41.87 20.5(
Edition book binding
+9.6 ------------+19.0 38.04 18.21
Lithographing and engraving_ +2.2 -------------1.9 39.60 14.0(
Textiles
-6.4 74. 79.7 86.S -12.7 21.53 9.3:
Cotton-woolen goods
-4.6 101.1 106.0114.4 -16.9 20.86 10.21
Knit goods
-8.5 78.9 86.2 77.8 -17.1 19.56 7.61
Thread and twine
-2.8 60.3 62.0 83.7 -3.7 23.30 13.6!
Miscellaneous textiles
-7.7 85.1 92.2 95.9 -6.2 23.71 9.51
Clothing and millinery
-6.5 63.7 68.1 66.2 -18.4 20.08 10.5,
Men's clothing
-5.5 68.3 61.7 58.1 -16.4 19.63 10.61
Men's shirts-furnishings
+1.5 71.2 70.1 65.3 -15.2 23.10 13.E
Overalls-work clothes
-5.6 21.7 23.0 12.2 -10.2 (9
8.7
Men's hats-caps
(5)
65.4 67.1 82.
(9
(9
(9
Women's clothing
-14.7 63.3 74.2 85. -26.9 24.09 9.2:
Women's underwear
-5.3 85.6 90.4 109. -21.1 (9
12.0
Women's hats
-31.8 14.9 21.8 28. -52.9 18.36 8.7
-3.7 72.9 75.7 80.
Food-beverages-tobacco
-8.1 26.91 16.21
Flour-feed-cereals
+0.7 78.4 77.9 89.
-9.3 24.62 11.0
Fruit-vegetable canning
-39.5
6.1 10.0 10. -35.4 16.09 3.9
Miscellaneous groceries
-0.6 80.4 80.9 85. -15.7 28.31 12.11
Slaughtering-meat packing_ +1.5 85.9 84.6 92.
-7.4 24.96 17.9
Dairy products
-2.2 90.8 92.8 97.4 -3.3 36.08 10.41
Bread-other bakery products_ -1.3 68.0 68.9 76.0 -2.0 32.57 15.0
Confectionery
-19.3 69.0 85.5 80.8 -3.4 33.15 16.7
Beverages
+0.4 79.0 78.7 69.0 -3.5 25.82 13.4
Cigars-other tobaccos
+2.4 71.1 69.4 87.3 -10.8 24.10 17.6
Manufactured ice
-25.4 67.4 90.4 52.7 -27.9 36.61 (9
Ice cream
-8.3 -------------6.8 45.40 (9
Miscellaneous manufacturing- --60.3 -------------61.9 19.51 (*)
Non-manufacturing industries -0.1 ------------+0.2 32.27 19.0
Trade-wholesale and retail
+0.2 62.
i
35.8.8 18.4
Department stores
+4.7 97.3 92.9 112.9 +3.0 28.30 17.4
Wholesale dry goods
-6.0 71.7 76.3 87.9 -6.3 30.87 13.3a
Wholesale groceries
-1.9 75.7 77.2 83.1 -1.9 31.56 15.51
Mall-order houses
-1.1 54.2 54.8 63.7 -1.9 25.96 19.49
Milk distributing
Metal jobbing
-1.6 -------------6.9 24.36 (*)
Services
-0.3 --------------0.6 21.28 13.74
Hotels and restaurants
-0.2 ------------+0.2 20.34 13.7'0
Laundries
-1.8 87.9 89.5100.8 -6.8 31.86 13.8
Public Utilitiee
+0.1 86.2 86.1 98.1 +0.9 35.89 20.4
Water. gas, light and power
+2.5 111.7 109.0 112.8 +0.4 29.02 (9
Telephone
-0.8 95.3 96.1 108.
+0.5 44.15 20.47
Street railways
-1.8 82.6 84.1 95.
+2.1 36.56 (9
Railway car repair
+2.1 48.0 47.0 67.
+0.4 27.38 (9
Coal mining
-0.3 75.6 75.8 85.
-6.0 19.43
Building-contracting
-3.7 43.1 44.8 60.
+9.8 38.70 Building construction
-6.9 25.9 27.8 42.1 +0.8 38.76 --.
Road construction
-19.0 22.8 28.2131.2 -13.0 29.88 Miscellaneous contracting- +2.4 86.1 84.1 119.5 +26.3 39.33 --.
•Figures omitted because fewer than 50 employees were reported.
i. -1.4
Trade and Industry in Richmond Federal Reserve
District During October and First Half of November
Increased Slightly Less Than Usual.
The Federal Reserve Bank of Richmond in its Nov.30
'Monthly Review" says that October and the first half of
November are expected to show a considerable increase in
nearly all lines of trade and industry over recent months,
and this year there was some increase, but it was less than
occurs in most years. Three principal causes for the lag of
business are widespread unemployment,low financial returns
from agricultural operations, and continued mild weather,
the first and second conditions definitely lowering the purchasing power of the district and the third condition postponing the necessity for the purchase of fall clothing, fuel, Am.
The Bank adds:
In banking, October and early November witnessed an increase of
rediscounts at the Federal Reserve Bank of Richmond of larger than
normal proportions, and the circulation of Federal Reserve notes also
increased more than is customary during the period. Reporting member
banks reduced their outstanding loans during the past month, and
their
deposits declined more than is accounted for by the reduction in loans,
necessitating further borrowing at the reserve bank. Savings bank
deposits
4224
• [VOL. 133.
FINANCIAL CHRONICLE
In mutual savings banks increased moderately in October, but time deposits
in regularly reporting member banks declined materially. Debits to
individual accounts figures for four weeks ended Nov. 11 not only showed
a seasonal decrease in comparison with figures for the four weeks ended
Oct. 14, but were 19% less than aggregate debits in the four weeks ended
Nov. 12 1930. The seasonal decline in debits last month was larger than
occurs in most years. In comparison with the United States as a whole,
the Fifth Reserve District made a good record in business failures in
October, experiencing fewer failures and lower liabilities than in either
more
September 1931 or October 1930. while the nation reported 11.2%
insolvencies and 25.5% larger liabilities last month than in October 1930.
early
There was no improvement in employment conditions in October and
November, but on the contrary the completion of outdoor work undertaken
during the summer months tended to add to the ranks of the unemployed.
Coal production in October showed some seasonal increase over the output
in September, but was much lower than production in October last year.
West Virginia continued to lead in bituminous coal production in October,
and showed somewhat less than the average decline in tonnage. The textile
Industry in the Fifth District increased consumption of cotton in October
by 13.2% in comparison with consumption in October 1930, while the United
States as a whole increased only 4.2%. In fact, the increase in corasumption
Fifth
of cotton in October 1931 over October 1930 was greater in the
lass
District than in the United States, New England States having used
were
cotton last month. Spot cotton prices at the middle of November
than
less
bale
slightly higher than a month earlier, but were about $20 per
foreprices at mid-November last year. The Department of Agriculture
casts the 1931 cotton crop at 16,903,000 bales, the second largest production on record, and yields in the Fifth District are in line with the average.
also
Cotton acreage was reduced in the district this year, and fertilizer was
used less extensively, but prospective yield is higher than last year on
account of exceptionally favorable weather and very small weevil damage.
but
The manufacture of tobacco has declined somewhat in recent months,
holds its own much better than most industries. Marketing of leaf tobacco
but
been
made,
have
Is under way in the Fifth District, and good yields
prices paid the growers are the lowest in many years and for low grades
there Is hardly any sale. Large yields of nearly all crops are being harvested
in the Fifth District this year, and in spite of disastrously low prices for
than
nearly everything they have to sell the farmers are probably better off
they were a year ago, production of food and feed crops in large amounts
this year making them less dependent on cash crops. The weather has
been ideal for harvesting the year's crops, but winter grains have not had
sufficient moisture for germination and growth, and fall plowing is behind
the usual schedule. Construction of residences and industrial buildings
continues at a very low level, but a considerable amount of public highway
work and other projects outside the cities is keeping contract award figures
about up to the level of the past year or two. Retail and wholesale trade
In October felt the effects of unusually mild weather and consequently
failed to show as large seasonal gains as in most years. In fact, wholesale
trade in October fell below the trade of September in all lines for which
information is available except dry goods. Both retail and wholesale
trade in October fell materially below the volume of business done in
October 1930.
In its report as to wholesale and retail trade the Bank says:
The weather in October was quite unfavorable for retail trade, being too
warm and clear for the sale of fall merchandise, and as a result department
store sales did not increase as much over September sales as in most years.
October sales usually exceed September sales by about 40%, but this year
the increase was only 26%. In comparison with last year's sales those of,
October 1931 show an average decline of 11.6% in 34 department stores,
and the first nine months of 1931 dropped 4.8% below sales in the first
three-quarters of 1930.
Stocks on the shelves of the reporting stores showed further seasonal
Increase in October. rising 9% over stocks on Sept. 30, but on Oct. 31
stocks were 9.6% less in selling value than stocks on hand on Oct. 31 1930.
Stocks were turned an average of .362 times in October, and since Jan. 1
1931. stocks have been turned 3.041 times, a better figure than 2.739 times
in the first nine months of 1930.
Collections during October showed a seasonal increase over September
collections and were a little better than the average for October last year,
28.3% of outstanding receivables being collected last month In comparison
with 24.6% in September 1931 and 28.2% in October 1930.
Wholesale Trade.
Sixty-four wholesale firms in five lines reported on October business to
sales in
the bank. Sales in October in dry goods were 5% larger than
seasonal
September this year, but the other lines failed to make the usual
1930.
October
in
sales
with
comparison
gain over the earlier month. In
from a decline
sales last month were materially lower in every line, ranging
the
of 13.7% in drugs to a decrease of 23.2% in hardware. Total sales for
first nine months of 1931 were lower in all lines than sales in the correspondlargest
the
hardware
and
smallest
ing period in 1930, drugs showing the
decline.
in groceries
Stocks on hand on Oct. 311931.showed a very slight increase
stock reductions
over stocks on hand on Sept.30,but the other lines reported
lower than
materially
were
during October. On Oct. 31.stocks in all lines
29.2%.
stocks a year ago, dry goods showing the largest decline,
October over
Collections in every line showed a seasonal improvement in
September, but were slower in every line than in October 1930.
Stronger Undertone Noted in Business and Industry
in Dallas Federal Reserve District in October.
A notable improvement in public confidence and a stronger
undertone in business and industry, engendered by the
higher prospective crop yields and by the rising prices of
some of the District's principal commodities, particularly
wheat and cotton, according to the Dallas Federal Reserve
Bank, were important developments in the Eleventh (Dallas)
District during the past month. The Bank in its Dec. 1
"Monthly Business Review" adds:
of 19% over the previous month, and the 20% decline from a year ago was
the most favorable percentage reported since last January.
Building activity, as measured by the valuation of building permits
Issued at principal cities, showed a gain of 34% over the previous month,
and while it was 35% below that in October last year, this decline was the
smallest since mid-summer. Although the production and shipments of
cement were lower than in the previous month, they evidenced a substantial gain over a year ago. Improvement was also noticeable in some
of the other industries in this District.
Favorable weather during the past month enabled farmers to make rapid
progress with the harvesting of cotton, and added to the prospective production of some late maturing crops. The Department of Agriculture in its
November 1 report estimated the production of cotton in this district at a
higher figure than a month earlier, and the grade and staple is turning out
better than in the two previous years. Larger production was also estimated
for some of the minor crops. The condition of ranges showed an improvement during the month,and that of livestock was well maintained. Reports
indicate that animals will go into the winter in good shape and that there
is an ample supply of dry feed available at reasonable prices.
There was a further expansion in the demand for Federal Reserve Bank
funds during the past month. Loans of this bank to member banks, which
stood at $19.339,000 on Oct. 15, rose to 526,068,000 on Nov. 3, and then
showed a gradual decline to 822.927,000 on Nov. 15. On the latter date,
these loans were $14.729.000 higher than on the corresponding date in
1930. Loans to customers by banks in larger cities also reflected a substantial
Increase between Oct. 7 and Nov. 12. The daily average of combined net
demand and time deposits of member banks amounted to $689,838,000 in
October, as compared to $724,824,000 in September, and $831,071,000 in
the corresponding month last year.
Wholesale Trade.
Wholesale and retail trade conditions are indicated as
follows by the Bank:
Some improvement was in evidence during October both in the demand
for merchandise at wholesale and In the general tone or sentiment underlying business in the 11th District. Increases over the previous month were
reflected in the October sales of groceries, farm implements, and hardware
through wholesale channels, and while dry goods and drugs showed declines
of 2.9% and 3.7%,respectively, the former was less than the usual seasonal
amount. The lines of groceries, dry goods, and drugs reported more favorable comparisons with the same month last year than were shown in September. While reports indicate that merchants are beginning to feel more
confident regarding the present level of prices, commitments for future
delivery are still being held to a minimum and most orders are being placed
to satisfy current demands for merchandise. As a general rule, both wholeBalers and retailers are carrying considerably smaller stocks than they had
on hand a year ago. October collections in every line of wholesale trade
showed further seasonal increases as compared to the preceding month.
Although business was somewhat spotty, the demand for dry goods in
wholesale channels of distribution held up very satisfactorily during October.
Sales reflected a decline of 2.9% from the previous month, which is leas than
the usual amount at this season of the year. As compared to the corresponding month last year, business during October showed a reduction of 20.2%
while in September the decline amounted to 29.4%, and in August it was
In
38.0%. Stocks on hand reflected a decrease of 13.4% during October.
the volume of collections there was a further gain of 29.2%.
at
wholesale
groceries
of
Contrary to the seasonal trend, distribution
in the 11th Federal Reserve District during October increased 3.6% as
compared to the previous month. Bales were 18.8% below the volume of the
corresponding month last year, whereas in September this comparison
showed a decrease of 24.4%. Total sales during the four months ended
Oct. 31 were 17.9% smaller than in the same period in 1930. Reports indicate that prices showed a firmer tone during the month than for some time
past. The ratio of collections to accounts and notes outstanding rose from
64.2% in September to 69.2% in October.
Following the material increase which occurred in the previous month,
a decline of 3.7% was reflected in the sales of wholesale drug firma in this
Districtduring October. Business was 16.1% smaller than in October 1930,
and for the period between July 1 and Oct. 31 this year's sales averaged
17.6% under those a year ago. Orders were small and were restricted principally to merchandise of a staple or seasonal nature. The volume of collections during the month was 7.5% larger than in September.
A seasonal improvement of 5.1% was in evidence in the October business
of reporting wholesale hardware firms in the 11th District. Despite this
Increase, the comparison with the corresponding month last year was somewhat less favorable than in September. Most of the demand was for replacement purposes or was stimulated by immediate requirements. During the
months from July to October, inclusive, total sales were 33.0% less than
in the like period of 1930. The month witnessed an appreciable gain in
collections.
Despite a slight up-turn in the demand for farm implements at wholesale,
the total sales of reporting firms during October continued considerably
below those a year ago. Distribution during the month was4.9% larger than
in September, but fell 61.5% under the volume of October 1930. A further
substantial increase was registered in the volume of collections during the
month.
CONDITION OF WHOLESALE TRADE DURING OCTOBER 1931.
(Percentage ot increase or decrease)
Tatio of ColNet Sales
Storks
lections
July1 to
Net Sales
Oct.. 1931 Coin- Date Corn- Oct., 1930 Cons- During Oct.
to Accts. et
pared Willi.
pared 1Vith
pared With.
Notes OutSame
Sept. standing on
Oct.
Period
Sept.
Oct.
1931,
Sept. 30.
1931. Last Year. 1930.
1930.
Dry Goods
Groceries
Farm implements..
Hardware
Drum
-20.2
-18.8
-61.5
-37.5
-16.1
-2.9
+3.6
+4.9
+5.1
-5.7
-28.3
-17.9
-44.0
-33.0
-17.6
-30.7 -13.4
-22.5
-0.5
-4.2
-10.4
-15.5
-2.4
-1.1
-17.7
25.8
69.2
4.3
82.1
36.6
l?4'a I Trade.
Reports to the Federal Reserve Bank from department stores in leading
Centres of this District showed some improvement in trade conditions during
October. Sales of merchandise reflected a seasonal increase of 14.5%, and
23.4% was registered as compared to the corresponding
Although unusually warm weather retarded the distribution of seasonal while a decline of
was a more favorable percentage than that shown in the
merchandise, department store sales recorded a substantial seasonal in- month of 1930, it
month. Although business during October was further retarded
crease over the previous month. and reflected a smaller decline from a year preceding
mild weather, reports indicate that during the first half
ago than in September. Distribution at wholesale reflected some better- by the prevailing
some lines of seasonal merchandise were accelerated by the
ment,although consumer buying Is still at a relatively low level as compared of November
low price offerings. Distribution during the first 10 months of
to previous years. Merchants are still limiting orders to immediate re- attractively
compared to the same period of 1930.
quirements, yet the gradually strengthening consumer demand and the 1931 reflected a decline of 15.3% as
of
Supplies of merchandise on hand on Oct. 31 showed a further increase
firmer tone of prices in some quarters are creating a more cheerful sentiment. I
17.9% below those held at the
were
month,
but
previous
the
over
3.5%
Debits to individual accounts at banks in principal Cities reflected a gain
close of October 1930. During the month, for the first time this year, the
rate of stock turnover fell below that of 1930. During the period Jan. 1
through Oct. 31 1931, the rate was 2.35 as against 2.41 in the corresponding
period of 1930.
While partly seasonal, a very favorable development in October was the
substantial improvement over the previous month in collections. The ratio
of October collections to accounts outstanding on Oct. 1 was 32.0% as
compared to 27.8% in September, and 34.9% in October 1930;
Agricultural Department's Report on Acreage of Winter
• Wheat and Rye Sown for 1932 Crop.
The Crop Reporting Board of the United States Department of Agricultural made public on Dec. 18 its report showing the acreage and condition of winter wheat and rye for
the crop of 1932 as follows:
Winter Wheat.
Winter wheat was sown this fall (1931)in the United States on 38,682,000
acres, a reduction of 4.467,000 acres or 10.4% from the sowings in the fall
of 1930. Actual sowings are, therefore, slightly above sowings intended
on Aug. 1. when intentions to reduce sowings by 12.0% were reported. Decreased sowings are shown for all parts of the country, the reduction being
12.3% for the North Central States, 12% for the Western States, 6.1%
for the South Central. 5.1% for the North Atlantic and 1.5% for the
South Atlantic. Reductions were greatest in the plains area from Montana to Oklahoma, in the Ohio Valley States and in Washington. This
is the first substantial change in acreage sown to winter wheat since the
fall of 1928 when sowings fell about an equal extent from the high figure of
47.317,000 acres sown in 1927. The sowings of 1927 had veen exceeded
only twice: in 1921 when they were 47.930,000 and in the war year 1918,
when they reached 51.483,000. The present acreage sown is 89.2% of
the sown average of the preceding three years, 1928-1930.
Sowings in much of the hard red winter wheat area of the Central plains
and in many sections of the far Western and the Eastern States were made
under unfavorable conditions of extreme dryness. As a result the crop in
those sections got a late start and in some cases the wheat is still unsprouted,
though late rains have helped in many areas. Sowings in the soft red winter
wheat area of the East North Central States were made under almost ideal
conditions but the unusually warm weather of the last month has led to
such a heavy growth as to involve danger of extreme winter loss in case of
sudden severe weather without adequate snow protection.
The condition of winter wheat on Dec. 1 1931 for the United States was
reported at 79.4% of normal,6.9% below the condition on Dec. 1 1930 and
about 3.8 points below the 10-year (1921-1930) average condition on Dec. 1.
The condition this year is the lowest December condition since 1890 with
the exception of 1917 and 1921. In other years with correspondingly low
condition, winter loss of acreage has been above average. In general, condition was above average in the principal soft winter wheat area but below
average in the remainder of the country.
RI E.-Sowings of rye in the United States this fall (1931) for harvest in
1932 are estimated at 3.712,000 acres, a decrease from the 3,993,000 acres
sown last fall (1930) of 7%. Acreage sown in the fall of 1929 was 3,791,000
acres: in the fall of 1928 3,279.000 acres. The reduction in acreage was
general in all of the important rye producing States except Michigan,
Wisconsin, South Dakota, and Iowa. Extreme drouth interferred with
seeding in the Northwestern States. Grass pasture conditions in the
Central and Eastern States were much more favorable than in 1930, which
tended to reduce the acreage of rye needed for supplemental pastures.
While the estimated area sown is intended to include only the acreage to
be harvested for grain, spring conditions may alter farmers' intentions by
causing an increase or decrease in the percentage utilized for pasture.
The average condition, as reported on Dec. 1 was 81.0% of normal, the
lowest for that date on record since 1890. The condition on Dec. 1 1930
was 82.6% and on Dec. 11929,87.2%. The outlook for the 1932 crop is
considerably better than it was for the 1931 crop in the Northern States
east of the Mississippi River. The condition is lower than on the corresponding date one year ago in the Southern States, east of the Mississippi
and in practically all States west of the Mississippi River except Texas and
Oklahoma. The condition is particularly low in the Northwestern drouth
area where moisture was insufficient for satisfactory germination.
WHEAT SOWN IN THE FALL OF 1931.
Area Sown.
1,000
Acres.
192
46
888
1,574
1,428
1,439
698
38
157
276
1,585
321
3,042
11.073
82
387
597
116
378
61
59
299
294
5
41
4.015
3,768
659
750
144
1,103
262
20
204
1
1,243
825
662
Per
Per
Per
Cent. Cent. Cent.
90
88
93
89
90
91
88
67
88
84
87
95
85
88
92
85
86
91
88
79
94
91
84
94
90
86
90
91
87
94
85
89
92
85
85
72
85
91
76
79
90
70
89
85
95
86
64
87
85
71
74
87
60
83
87
87
67
84
77
66
86
83
72
88
81
90
85
86
77
85
88
84
84
82
82
80
83
80
88
80
83
79
85
74
87
94
86
86
91
75
82
86
54
79
91
79
94
95
90
88
95
78
92
94
72
80
82
81
88
89
81
90
87
71
43,149
38.682
.,........
too ..
..
Per
Cent.
95
93
95
91
85
78
98
150
100
80
102
130
87
86
85
90
97
100
110
113
115
120
115
115
110
87
99
80
107
70
77
100
85
100
30
88
95
90
1
Utah
Nevada
Washington
Oregon
California
1,000
Acres.
202
49
935
1,730
1,680
1,845
712
25
157
345
1.505
247
3.496
12,876
960
430
615
116
344
54
51
249
256
4
37
4,615
3.808
824
701
206
1,433
262
24
204
3
1,412
868
735
1.000
Acres.
238
55
986
1,570
1.618
2,150
792
31
168
391
1,585
79
3,853
12,667
107
514
667
106
360
55
51
210
292
2
19
4.868
3.194
734
725
150
1,505
360
19
190
4
1.279
955
791
to,-.1000.40,0. .4-c7mb5b. tat.
QN...14.0,0QQ..... It
...-QP.40,
00.o.4.09Y........-4..di .
Arizona
10-Yr.
Aver.
1920- 1930. 1931.
1929.
02,.401NOW.4WCP.O.ODOCNOWMCA...10.0M000.4.-.90).
New York-New Jersey-Pennsylvania
Ohio
Indiana
Illinois
Michigan
Wisconsin
Minnesota.,
Iowa
Missouri
South Dakota
Nebraska....
Kansas
Delaware--Maryland....
Virginia
West Virginia
No. Carolina.
So.Carolina_ _
Georgia
Kentucky
Tennessee
Alabama
Arkansas....
okiahoma
Texas
Montana....
Idaho
Wyoming
Colorado
New Mexico__
Condition Dec. 1.
Autumn
Autumn Autumn Autumn Autumn of 1931
of
of
of 1931 'Cornof
1928.
1929.
1930. (Prelim- pared
(Revised) (Revised) (Revised) tnary). With
1930.
*opt;
9,-....
State.
Total U.9
43,340
4225
FINANCIAL CHRONICLE
DEC. 26 1931.]
43,630
89.6
83.3
86.3
79.4
RYE SOWN IN THE FALL OF 1931.
State.
Area Sown.
Condition Dec. 1.
Autumn
Autumn Autumn Autumn Autumn 01 1931
of
of
of 1931 Cornof
1930. (Prelim- pared
1928.
1929.
(Revised) (Revised) (Revised) inary). With
1930.
10-Yr.
Aver.
1920- 1930. 1931.
1929.
New York__
New Jersey-.
Pennsylvania_
Ohio
Indiana
Illinois
Michigan_
Wisconsin....
Minnesota..
Iowa
Missouri
North Dakota
South Dakota
Nebraska....
Kansas
Delaware__ -.
Maryland._
Virginia
West Virginia
No. Carolina_
So. Carolina_
Georgia
Kentucky
Tennessee.-Oklahoma...
Texas
Montana.-Idaho
Wyoming......
Colorado
Utah
Washington
Oregon
01-A...2
TV
•
M
-
1,000
Acres.
21
31
128
50
104
51
148
192
423
48
16
1,133
242
257
15
5
19
42
11
55
7
13
19
17
8
3
74
4
35
73
3
13
21
oon
•
0
1,000
Acres.
26
29
130
45
92
61
144
199
437
46
14
1,359
427
327
19
5
20
41
11
54
8
12
16
16
9
4
76
4
33
90
3
11
23
o on'.
•
1,000
Acres.
21
21
141
76
128
65
161
181
380
43
29
1,388
497
354
28
8
23
73
16
56
8
14
25
23
9
3
80
3
31
66
3
10
21
1,000
Acres.
19
17
134
57
124
85
169
226
323
52
17
1.110
572
354
25
6
21
60
10
66
7
14
24
25
10
4
68
3
29
63
3
12
23
O MO
Q•010
Per
Cent,
90
80
95
75
97
100
105
125
85
120
60
80
115
100
95
75
90
82
60
100
90
100
95
110
115
140
85
100
95
95
110
120
110
Per
Per
Per
Cent. Cent. Cent.
90
85
91
91
90
91
90
68
88
88
87
95
89
89
92
91
87
93
89
81
91
92
86
94
89
85
87
93
89
93
88
91
88
84
77
74
86
88
78
89
91
77
84
92
83
90
90
97
88
68
85
87
73
77
87
60
83
89
88
74
85
79
62
88
84
76
89
78
94
87
88
78
83
80
82
80
89
85
81
82
68
90
90
86
87
91
75
83
87
54
86
99
64
84
74
75
90
87
82
AO A
00 C
00 A
oi n
WINTER WHEAT AND RYE SOWN IN THE FALL OF 1931.
The Crop Reporting Board of the United States Department of Agriculture makes the following report from data furnished by crop correspondents, field statisticians, co-operating State Boards (or Departments)
of Agriculture and Agricultural Colleges.
Fall Sowings.
Crop and Year.
Winter wheat10-year average, 1920-1929
1928
1929
1930
1931
Rye (for grain)10 year average, 1920-1929
1928
1929
1930
1931
Per Cent
of Acreage
Sown the
Previous
Fall.
Acres.
Condition
Dec. 1.
Per Cent.
100.7
98.9
89.6
43.340,000
43.630.000
43,149,000
38.682,000
83.3
84.4
86.0
86.3
79.4
115.6
105.3
93.0
3.279,000
3.791,000
3.993,000
3,712,000
87.5
84.4
87.2
82.6
81.0
Winter Wheat.
The abandonment in 1931 was 5.0% of acreage sown to winter wheat:
in 19309.4% and average for the ten years 1920-1929 was 12.2%.
Rye (for Grain).
The estimates for rye relate to the acreage sown for grain, allowance
having been made for average diversion to other uses and for probably
spring sowings in the Dakotas.
Montgomery Ward and Sears, Roebuck Cut 5% to 15%.
Montgomery Ward & Co. has made reductions ranging
from 5% to 10% on its entire line of Riverside passenger car
tires and inner tubes, effective Dec. 26, says the Chicago
Bureau of the "Wall Street Journal" Dec. 23, which adds:
The company is introducing a 6-ply heavy duty Riverside mate tire at
the usual price of a 4-ply tire.
Montgomery Ward also announces a free wheeling device to fit old model
Chevrolets and all model Fords and costing less than $15.
Further substantial cuts in storage battery prices also are made, bringing
these to the lowest levels at which batteries have ever been sold.
In mid-winter sales book now being mailed to customers Sears-Roebuck
announces reductions in automobile tire prices ranging from 5% to 15%,
according to size. Standard balloons Ford and Chevrolet size are now
$4.79 against $4.98 previously, and six-ply balloons in the same size are
$6.79 against former price of $7.15.
Sears, Roebuck and Montgomery Ward cut truck tire
prices between 10% and 15% early in December, as was
noted in the "Chronicle" of Dec. 12, page 3877.
New Automobile Models.
The Graham-Paige Motors Corp. is introducing its new
Graham "Blue Streak" eights with a wheelbase of 123 inches
and a 90 horsepower engine. Each car will be available in
standard and de luxe models, priced as follows:
Standard models.-Business coupe, $995; rumble seat coupe, $1.045:
four-door six-window sedan, $1,045.
De Luxe models.-Coupe.$1,070: rumble seat coupe,$1,120; convertible
coupe, $1,170: four-door six-window sedan, $1,120.
The Cadillac Motor Car Co. is showing its11932 line of
Cadillac and La Salle cars to a group of approximately 8(0
dealers who are in Detroit for a two-day convention. Aocording to President L. P.' Fisher, the company has spent
$6,000,000 in developing new models in the four Cadillac-
4226
FINANCIAL CHRONICLE
[VOL. 13.1.
La Salle lines which comprise the La Salle V-8 and the V-12 Farmers Receiving
Less for Live Hogs Than Is Justified
and V-16 Cadillacs. The company has added 400 sales
by Retail Prices, According to C. B. Denman of
outlets during the past year.
Federal Farm Board.
The Studebaker Corp. is introducing new 1932 models,
The
following statement was made on Dec. 17 by C. B.
offered on four wheelbases, with prices ranging from $840
member of the Federal Farm Board:
to $1,890, compared with previous range of from $845 to Denman,
Farmers are receiving much less for live hogs than is Justified by prices
$1,950 on corresponding lines. The new models are equipped consumers are paying for pork products. On Dec. 15 prices at New York
with an improved type of free-wheeling and synchronized retail markets for good grade pork chops averaged 26 cents a pound, a reof 7 cents, or 21%, from the price Dec. 15 1930; ham 22 cents a
shifting and comprise 22 body styles, including eight conver- duction
pound, a reduction of 7 cents, or 25%; sliced bacon 32 cents a pound, a
tible models.
reduction of 9 cents, or 22%; picnics 14% cents a pound. a reduction of
55 cents, or 27%, and lard 133i cents a pound, a reduction of 3 cents,
or 18%,from a year ago. Prices of live hogs at Chicago for the week ending
Dec. 12 averaged only $4.18 a hundredweight compared to $7.92 for the
corresponding week in 1930, a reduction of $3.74, or 47%. The figures
quoted were developed by the Bureau of Agricultural Economics of the
United States Department of Agriculture.
With agencies between the farmer and the consumer making little or no
A picture of the world consuming more foodstuffs in the form of wheat reduction in their margins, practically all the burden of supplying the conand rye than it was producing, was given here last night by Harry Stevens, suming public with low-priced pork products is being carried by farmers.
Dominion Minister of Trade and Commerce, in an address to the Foreign The percentage farmers receive of retail prices of pork products is the smallest on record. Current retail prices warrant considerably higher prices
Trade Bureau of the Board of Trade.
Increased production during the past 10 years had been accompanied for hogs than farmers are receiving.
This statement is issued in the interest of agriculture and business genby increased consumption so that this year there would be a deficit of 350,000.000 bushels of the two cereals to eat into the present so-called surplus. erally, for upon hogs, more than any other commodity, depends payment
of
taxes and other bills in a very large section of our country.
Cereals
But Mr. Stevens did not recognize there was a surplus.
were
unsold only because the millions of Asia had been robbed of their purchasing power through the demonetization of silver, he said. He stated To
Urge Cost Prices on Coffee Roasters—Custom of
further that there was actually under-production of the silver to meet
Foregoing Profits from Market Rise Scored by
present consumption. Simple lack of currency was the cause of the world's
economic troubles, he said.
J. R. Rosenthal.
Mr. Stevens sailed from Vancouver to-day for Honolulu, where he will
An effort to persuade coffee roasters to use the market
negotiate with Downie Stewart, New Zealand's Minister of Finance, on a
trade treaty between the two Dominions.
replacement cost of coffee in figuring resale prices
Canadian Minister of Trade Predicts Grain "Deficit"—
Says Consumption Is Overtaking Production.
The following Candian Press advices from Vancouver
Dec. 19, are from the New York "Times":
on a
rising market will be started by the National Coffee Roasters'
Russia Reports Grain Crop Gain—Collections to Date Association, J. R. Rosenthal, Assistant Manager of the
Exceed Those of 1930, fficial Statement of Soviet— organization, said on Dec. 19, it was stated in the New
York "Times" of Dec. 20, which further said:
Export Shortage Denied.
The present habit of selling all stocks on hand on a basis of actual cost
In its issue of Dec. 15 the new York "Evening Post" had when the market rises, was branded by Mr. Rosenthal as "just another
form
price-cutting" which upsets the market. The same conditions
the following to say in Associated Press advices from Moscow: found of
in the coffee
Collections of the 1931 Russian grain crop up to date exceed those of
1930,according to an official Government announcement. In 1930 upwards
of 800,000.000 bushels was turned in at Government warehouses.
No figures on this year's crop were given out and there was no indication
of how much the 1931 crop surpasses its predecessor. The announcement
merely added that collections reached 84.4% of the 1931 plan on Dec. 10
and that the whole program would be fulfilled by the end of this month.
The report was considered as refuting previous reports abroad that this
year's available export wheat from Russia would be considerably diminished.
Such reports were regarded here by foreign observers as exaggerated, in
spite of the intention to increase horne consumption of grain In Russia.
The Communist Party and Soviet agricultural organizations have begun
a drive against delays as part of a program to forestall any hitch in the
program. These delays, they have charged, were due to "opportunism
among collective fencers who have withheld grain for their own use," to
"class enenies," such as rich peasants and to inefficiency of those responsible for collections.
Cutting off of credits extended for machinery and fertilizers on State and
Collective farms has been threatened as a penalty for failing to fulfill
quotas. Such credits last year amounted to half a billion dollars.
trade, he added, are true In the sale of all products
where the cost of raw materials is the governing factor in the final price.
"The cost of coffee to the retailer," Mr. Rosenthal pointed out, "is to
an unusual degree dependent on the given coffee prices, and quotations
vary directly with changes In the green coffee market. When quotations
are declining, sales invariably are made on the basis of market or replacement costs, but the actual cost is used as the determining factor when
the market is rising. This policy of giving the retailer the advantage
of market increases is hardly a matter of pure philanthropy. It is inevitable that some roasters and jobbers have stocks on hand at the original
lower prices and are able to sell at a profit on prices below the market.
Competitors with limited stocks are forced to meet these quotations,
although they purchase supplies at the higher price.
"It should be clear that no permanent gain accrued to the company
which attempts to take volume from competitors by passing legitimate
market profits on to retailers. In the first place, the company which
may be long on one rise may be short on the next. Secondly, the market
profit on stocks on hand during a rising market is a legitimate profit.
and if sound management policy is followed will be taken to offset market losses on stocks during periods of declining prices."
Brazilian Coffee Prices Firm—Commercial Moratorium
Appropriation for Australian Farmers Wheat Harvest
Ended Dec. 10—New Import Duties.
Estimate.
Brazilian coffee shipments were light and prices firm during
The following cablegram from Adelaide, Dec. 18, is from the past week, according to a cable received in the Departthe New York "Times":
ment of Commerce from Commercial Attache Carlton
The South Australian Government to-day voted for an additional Jackson on Dec. 17. Exchange
strengthened to 15 milreis
appropriation
assist
needy
to
farmers next season. The Govern£500,000
75 reis to the dollar, according to the Department, which
ment had earlier appropriated £500,000.
The South Australian wheat harvest is estimated at 44,500,000 bushels, added:
but the Government says it probably will be higher because of late crops
which cannot be estimated now. The yield is likely to be 10,000,000
bushels above last season, because nearly 4,000.000 acres are sown and the
average yield is about 11% bushels to the acre. Nearly 5,000 farmers
have sown wheat.
The period of the foreign commercial moratorium ended Dec. 10 was
not extended. Apparently, the supply of export bills is adequate for
necessary commercial remittances. Dec. 10 also inaugurated the collection of import duties on the new basis. All commercially important
countries, except Russia, are on the favored nation basis and, effective
Dec. 12, are receiving the 35% reduction provided for in the decree of
Sept. 11. The Federal Government has transferred all coffee defense to
the National Coffee Council, which is forming a plan for the destruction
of 12,000,000 bags at the rate of 1.000,000 bags monthly. The export
tax on coffee has been increased to 15 shillings gold per bag.
Brazil Keeps Aranha as Finance Minister—He Pledges
Payment of Foreign Debts and Explains Coffee
Funding Plan.
Sebastiao Sampaio, Consul-General of Brazil in New
Results of Sao Paulo Coffee Realization Plan
York, announced on Dec. 17 that Dr. Oswald° Aranha had
for November.
been permanently appointed to the Finance portfolio in
Speyer & Co. and J. Henry Schroder Banking Corp.,
the Cabinet. We quote from the New York "Times" of
U. S. A., fiscal agents for the State of Sao Paulo 7% coffee
Dec. 18, which also had the following to say:
In an interview to the Brazilian Press, Dr. Aranha declared he could realization loan of 1930, reported on Dec.21 that remittances
announce for Brazil an exact budget with a surplus balance and even with in
transit and received for November amounted to $1,561,the means for starting a program of urgent productive works and con710, while the monthly interest and sinking fund requirestruction of which the country is in great need.
With reference to Brazilian foreign loans and their funding, he stated ments for the loan amount to $1,321,886.
The announcethat it was practically accomplished. He emphasized that Brazil does
ment also said:
not repudiate its debts and on the contrary wants to pay them.
He explained the new plan for the financing of Brazilian coffee. The
National Coffee Council requires 600,000 contos of reis (approximately
$38,000.000 at to-day's rate of exchange) to take over the present stocks
and to purchase the excess of the crops in order to maintain for the product
the domestic prices which prevail at present. The National Coffee Council
will draw against the Bank of Brazil during 16 weeks and at the same time
it will turn over to the bank the proceeds of all its collections, inclueing
the export tax of 10 shillings per bag, in the total of 296,000 contos (about
$18 M0,000). According to this arrangement on next April 7 it will still
have a debt of 304.000 contos ($19,000.000) with the Bank of Brazil, but
It will then cease drawing against the bank, continuing, however, to turn
over to it the proceeds of its tax collections, so that on Aug. 25 the total
of the debt shall have been wiped out and a credit balance remain.
There should have been received from the sale of pledged coffee and from
the special tax, a total of $1,952,213, which includes provision for the
reserve account and, according to Sao Paulo advices, the National Coffee
Council will arrange for the remittance of the $390,503 difference as soon
as possible.
Reduction in Print Cloth Production by Southern
Mills.
From the New York "Evening Post" we take the following
from Charlotte, N. C., Dec. 21:
Print cloth production by Southern mills will be reduced by more than
10,000,000 yards this week as a result ofextension of the Christmas holidays.
FINANCIAL CHRONICLE
DEc. 26 1931.]
This cut is the first step in a program to be carried out for an indefinite
period by some of the largest print cloth mills in the South.
Present plans call for a week's closing each month until the necessity for
such action no longer exists. It comes as a result of overproduction in late
October and November and demoralized price conditions.
4227
The relatively high price of Indian is attributed not only to the reduction in
the Indian crop but to a strong holding movement in the interior of India.
Indian natives have strengthened their position in terms of rupees by selling
hoarded gold at the prevailing premiums. Exports of gold by India are
estimated to have reached 23,000,000 pounds sterling and it is expected that
they will continue until the internal inflation in India corrects the overvaluation of the rupee.
Trade advices indicate that consumption of Indian cotton outside of
India will be much reduced, and foreign spinners will use American and other
cottons in larger proportion, if present price relationships continue.
Southern Growers Holding Back Cotton from Market
Because of Low Prices.
The extent to which Southern cotton growers have been
holding back their cotton from market because of the low Reduction in Wages Voluntarily Accepted by Union
prices is indicated by statistics on stocks on plantations and
Carpenters in Cleveland.
movement off plantations to Nov. 30, according to the New
Cleveland advice to the "Wall Street Journal" Dec. 17
A
York Cotton Exchange Service, which on Dec.22 said:
says:
end of November this year there were 4.706,000 bales of ginned
At the
cotton on plantations, compared with 2630,000 on the same date last year
and 2,292,000 two years ago. The total of unpicked and unginned cotton
at the end of November was 1,498.000 bales this year. against 919,000 last
year, and 1.695.000 two years ago.
The amount moved off of plantations to the end of November. according
to the Exchange Service, was 11,160,000 bales this year, against 10,599,000
last year, and 10.750.000 two years ago. While the movement off plantations was much larger this year than in the past two years, it was not in
proportion to the supply on plantations, including the new crop. The plantation supply this year totaled 17,364,000 bales, against 14,148,000 last
year, and 14,737,000 two years ago.
Activity in the Cotton Spinning Industry for
November 1931.
The Department of Commerce announced on Dec. 18 that
according to preliminary figures compiled by the Bureau of
the Census 32,366,444 cotton spinning spindles were in
place in the United States on Nov. 30 1931, of which 24,860,684 were operated at some time during the month compared with 25,188,112 for October, 25,236,916 for September,
25,622,526 for August, 25,825,718 for July, 25,898,026 for
June and 25,796,748 for November 1930. The aggregate
number of active spindle hours reported for the month was
6,014,182,395. During November the normal time of operation was 24)'i days (allowance being made for the observance
of Thanksgiving Day in some localities), compared with
26% for October, 253/i for September, 26 for August, 26 for
July and 26 for June. Based on an activity of 8.93 hours
per day the average number of spindles operated during
November was 27,772,399 or at 85.8% capacity on a single
shift basis. This percentage compares with 85.1 for October,
88.1 for September, 81.8 for August, 86.0 for July, 86.8
for Juno and 79.7 for November 1930. The average number
of active spindle hours per spindle in place for the month
was 186. 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:
Active Spindle flours
for November.
Union carpenters in Cleveland have voluntarily accepted a $2 reduction
in daily wages. The old contract of $11 a day was to have been in effect
until March, but a new agreement of $9 a day, effective Jan. 1, has been
signed.
Wage Cut Accepted by Utica (N. Y.) Plumbers and
Steamfitters.
Associated Press advices from Utica, N. Y., Dec. 11, say:
Utica plumbers and steamfitters have voted for a $1 a day reduction in
wages and a five-day week starting Monday morning. Conferences in the
last few weeks and requests for such action from employers preceded the
agreement. The move is expected to stimulate building if followed by other
unions.
Miners in Harlan and Bell County (Ky.) Vote to Strike
Jan. 1.
County miners, meeting here
Bell
and
Harlan
250
About
Dec. 13, formed a Kentucky district organization of the
National Miners Union and voted to strike Jan. 1, says an
Associated Press advice from Pineville, Ky., Dec. 13.
The advice continues:
They would demand $4.80 for top day men. $4.40 for helpers and $3.60
for unclassified labor: enforcement of the eight-hour day; reemployment of
blacklisted miners; withdrawal of armed forces and release of all miners
In jail for union activities.
Shoe Prices Reduced by Melville Shoe Corporation.
From the "Wall Street Journal" of Dec. 12 we take the
following:
Melville Shoe Corp. has temporarily reduced prices on men's, women's
and boys' shoes in its 478 John Ward, Thom McAn and Rival stores, by
approximately 17.5% from prices prevailing a year ago. The stores are
In 217 cities throughout the United States and extend as far West as Denver.
The reduction was made possible, according to Ward Melville, President,
by the present position of raw materials, plus an increased effort on the part
of the manufacturer to lower costs all along the line. The new prices In
the three Melville chains range from $1.95 to $2.45 for Thom McAn boys'
shoes to $6.85, the top price for John Ward, with Thom McAn men's and
women's shoes at $3.30 and $3.65. respectively, and Rival men's shoes
at $3.45 and $4.45.
Melville Shoe Corp. enjoys a unique factory-distributor relationship,
under which the factory makes its shoes at cost and shares in the retailers,
net profit.
Petroleum and Its Products—One-Day Shutdown
Movement Spreading As Outlook Improves for
Teal.
Maintenance of Present Crude Price Structure.
32.366.444 24,860,684 6,014,182,395
186
United States
General approval of the Texas movement, voluntarily
entered into by largo producers there, whereby production
250
Cotton growing States 19,081,744 16.967.916 4.773.910,184
6.899,878 1,081.240,842
91
New England States_ 11,914,784
is automatically cut about 15% by a complete one-day shut992.890
1,369.916
159,031,369
116
All other tRateS
down of both producing and refining operations, has brought
1,844,654
1,672,906
470,380.794
255
Alabama
684.818
1,067,036
114.793,800
108
Connectleut
about a sharp reversal in the situation which last week caused
3,249,968
2,855.216
771,709,942
237
Georgia
977.796
high officials to warn of impending disastrous action on
705.552
120.487,303
123
Maine
3,625,312
6,549.096
526,683,045
80
Massachusetts
prices if steps were not taken to remedy over-production.
206.044
127.720
35,815,850
174
Mlsolsslpl
801.794
1,188.520
147.326.657
124
New 11 amps/11re
At least 10 of the major companies operating in Texas have
205.864
34.479.468
373,276
92
New Jersey
499.148
638.296
77,527,033
121
either already adopted the six-day week, or have indicated
New York
5.386,294 1,355,459,250
6,196.392
219
North Carolina
their decision to. Not only in the crude market has the
996.792
2,015,072
162.324.537
81
Rhode island
5,434.430 1,723.135.469
5,702.284
302
South Carolina
price structure been strengthened, but it is believed that
553.504
621,200
188.387.611
303
Tennessee
175.588
282.100
42,596.444
151
Texas
to the prompt action taken to cut output, refinery
due
599,034
679.254
146,432,775
216
Virginia
536,712
775,452
96,642.417
125
products will also be greatly benefitted.
All other States
No report has been made as yet of the actual weekly rebut figures for the last week before the cut, namely,
duction,
of
Season
Indian
This
Government
Cotton Production
the week ended Dec. 19, show that there was an average of
Below Last Year.
barrels of crude run to stills daily. These figures
The Indian Government, in its regular December crop 2,317,300
there was in storage on Dec. 19, 35,936,000
report, estimates cotton production of India this season at also show that
and 133,908,000 barrels of gas and fuel oil.
4,096,000 running bales of about 400 lbs. each,compared with barrels of gasoline
California
indicate that the Standard Oil
from
Reports
4,750.000 last year, a reduction of 654,000 bales, according
of California has added another valuable unit to its
to a cable to the New York Cotton Exchange Service. The Co.
reservoirs. This was brought about by the completion of
latter on Dec. 21 added:
The cotton crop estimates of the Indian Government are usually consider- the discovery well of Petroleum Securities Co. in the Kettleably lower than trade estimates and calculations of the crop based on move- man Hills middle dome, where earlier drilling had not been
ment int() commercial channels, but the reduction in the Government crop successful.
As yet, California producers have not discussed
estimate is regarded as important as confirming trade advices that the
the advisability of adopting the one-day shutdown, dependIndian crop this year is much smaller than that of last year.
An estimate issued two weeks ago by the New York Cotton Exchange ing upon their co-operative association to so control the
situaService Put the Indian crop, in terms of 400-1b. bales and exclusive of cotton
tion that a definite periodical shutdown will not become
used in the households of India, at 4.750.000 bales this year, compared with
5.731,000 last year. The Exchange Service estimates show a reduction of necessary.
981,000 bales against the reduction of 654,000 shown by the Indian GovernAlthough sentiment in the Mid-Continent area has imment's figures.
proved considerably, there has not as yet been any definite
Advices from Liverpool to the Exchange Service state that Indian Omnra
future contracts are selling at Liverpool at a farthing over American futures. favorable reaction on the refined market. However, proSpinning Spindles.
Stale.
In Place
Nor. 30,
Active DurNovember,
Average per
Spindle In Place,
4228
FINANCIAL CHRONICLE
[VOL. 133.
ducers feel that this will begin to become effective within a
few days, after the first week's reduction is felt through the i Crude Oil Output in United States Continues Increase
Over Corresponding Period Last Year.
different channels of refining and distribution.
The American Petroleum Institute estimates that the daily
Strong efforts are being put forth to win congressional
approval of the oil tariff, which, its adherents claim, will average gross crude oil production in the United States for
solve many of the problems facing the domestic industry. the week ended Dec. 19 1931, was 2,430,300 barrels, as
compared with 2,452,650 barrels for the preceding week, a
There were no price changes of note during the week.
decrease of 22,350 barrels. Compared with the output for
Prices of Typical Crudes per Barrel at Wells.
the week ended Dec. 20 1930 of 2,202,200 barrels per day.
gravities where A.P. I. degrees are not shown.)
Bradford. Pa
21.85 Eldorado, ark., 40
$0.65 The current figure represents =increase of 228,100 barrels
Corning,Pa
.80 Rusk. Texas, 40 and over
.68
Illinois
.80 Salt Creek. Wyo.,40 and over
.85 daily. The daily average production East of California for
Western Kentucky
.75 Darst Creek
.60 the week ended Dec.
Mid-Continent, Okla.,40 and above .85 Sunburst,
19 1931 was 1,921,100 barrels, as comMont
1.05
Hutchinson, Texas,40 and over-__ .66 Santa Fe Springs,
Calif.,40 and over .75 pared with 1,944,450 barrels for the preceding week, a
SpIndietop, Texas, 40 and over-- .79 Huntington.
Calif.,
.72
26
Winkler, Texas
.71 Petrone, Canada
1.75 decrease of 23,350 barrels. The following are estimates of
Smackover, Ark.. 24 and over
.55
daily average gross production, by districts:
REFINED PRODUCTS-MARKET HAS NOT YET REACTED TO
DAILY AVERAGE PRODUCTION (FIGURES IN BARRELS).
CRUDE REDUCTION-EASTERN MARKET FAIRLY FIRM,
Week EndedDec. 19 '31. Dec. 12 '31. Dec. 5 '31. Dec. 20 '30.
WITH SECTIONAL CHANGES ONLY-KEROSENE SHOWS Oklahoma
545,350
538,650
555.050
462.350
Kansas
107,800
105,100
105.100
103.300
IMPROVEMENT DESPITE LOCAL CUTS.
Panhandle Texas
52,600
53.000
52,600
76,500
North Texas
55.500
55.600
56,450
62,050
Refined markets throughout the country maintained a West Central Texas
26,600
25,850
25,850
29,800
West
Texas
197.500
fairly unchanged status during the week, while distributors East Central Texas
198.150
202,000
245,500
56,850
56,750
.56,800
41,150
watched with keen interest the effects of the voluntary one- East Texas
387,050
410,900
402,200
Southwest Texas
58,250
57.000
55,850
84,750
day per week shutdown in Texas, a movement which may North Louisiana
27.900
27.600
28.700
43,050
Arkansas
34.250
37,400
37.450
51,350
spread throughout the entire Mid-Continent area. There Coastal
Texas
120,000
128,950
127,500
163.300
Coastal Louisiana
were no important price changes made, with the exception Eastern
33.650
35,400
34.050
26,850
(not inel. Mtehlgan)-110.050
111.150
109,500
102.500
of several sectional reductions. The most important of Michigan
14,150
x14,850
13.350
8,950
Wyoming
38,350
38,300
35.300
48,800
these was announced by the Standard Oil Co. of New York Montana
7.800
7,550
7.950
6,650
3,950
3.800
3,950
3.950
on Dec. 22, when this company reduced tank wagon prices Colorado
New Mexico
43,500
43.700
43.950
39,000
California
on gasoline one cent a gallon in Buffalo and Rochester.
509,200
508.200
495,000
602,400
However, the tank wagon change did not effect service
Total
2,430,300 x2,452,650 2,449,850 2,202,200
x Revised due to error In transferring figures from detail report; Michigan total
station prices. The new prices are 14.8 cents a gallon in previously
reported as 18.850 should have been 14.850: United States total previously
Buffalo and 15 cents in Rochester. Kerosene at both these reported as 2,456.650 should have been 2,452,650.
The estimated daily average gross production for the Mid-Continent
points was also reduced 13/20. per gallon both tank wagon
Field, including Oklahoma, Kansas, Panhandle, North, West Central.
and service station.
West, East Central, East and Southwest Texas, North Louisiana and ArkReports from Chicago show that the gasoline market on ansas, for the week ending Dec. 19, was 1,549.650 barrels, as compared
spot deliveries has not shown any startling developments, with 1,566,000 barrels for the preceding week, a decrease of 16,350 barrels.
The Mid-Continent production, excluding Smackover (Arkansas) heavy
as jobbers have been buying on a hand-to-mouth basis and, oil,
was 1,526,750 barrels, as compared with 1.540,450 barrels, a decrease
despite the out in crude production, have failed to act to of 13,700 barrels.
The production figures of certain pools in the various districts for the
cover themselves ahead. U. S. motor gasoline in Chicago
current week, compared with the previous week, in barrels of 42 gallons,
below 57 octane is quoted at 23o. to 23/s43. per gallon.
follow:
-Week EndedDespite the reduction in kerosene prices in Buffalo and
-Week EndedOklahoma-Dec. 19.Dec. 12. Southwest TexasDec. 19.Dec. 12.
Rochester, this market as a whole has shown considerable Bowlegs
14,050 13.900 Chapmann-Abbot
1,850 1,900
Bristow-Slie.k
11,650 11,700 Darst Creek
19.260 17,900
strength during the week, with business being booked on a Burbank
11,850 11,900 Luling
7.450 7,500
Carr City
19,500 16,100 Salt Flat
9,500 9,900
larger scale than had been anticipated. It is pointed out Earlaboro
15.900 12,800
North LouisianaEast Earisboro
14,900 12,800 Sarepta-Carterville__
that the action in upper New York State was of local im- South
800
800
Eariaboro
6,000 5,600 Zwolle
5,150 4,750
portance only, and resulted from competitive action on the Honawa
6,650 6.000
ArkansasLittle River__
19,050 21.050 Smackover.light- - ---- 2.900 3,150
part of nearby Pennsylvania distributors.
East Little River
2,250 2,150 Smackover, heavy
22,900 25,550
2,050 2,150
Coastal TexasThere has been no change in the tank car price postings Maud
Mission
9,554) 7,500 Barbers 13111
22.800
188.600 191,100 Raccoon Bend-- ______ 20.700
here, and while some gasoline has been sold tank car for as Oklahoma City
5,650 5,900
20,350 17,450 Refuel° County
St. Louis
15,100
16,000
low as 53
4c. per gallon, this has been below 65 octane. Searight
3,840 4.550 SUgarland
10,850 11,000
Coastal Louisiana12.701) 12,150
However, reports continue that there will be a general Seminole_
East Seminole
1,400 1.250 East Hackberry
10,350 12.800
KansasOld HackberrY
reduction in the tank car price here shortly, probably Y
600
600
2c. Rita
17.050 16.600
Wyoming17,550 14,950 Salt Creek
per gallon, which would bring the general market down to Sedirwick County
22,650 20.400
Voshell
Montana10,050 10,800
a 6c. per gallon basis. While this is conceded by market
Panhandle TexasKevin-Sunburst
4,750 4,700
Gray County
32,350 32,900
New Mexicoleaders to be the trend, others declare that the reduction, Hutchinson
County.... 12,750 12,800 Hobbs High
37,200
37,200
North TessaBalance Lea County...-.. 4,150 4,300
if it becomes effective, will not continue for any great Archer
12.000 12,000 CaliforniaCounty
length of time, due to the crude production cut, the effects North Yining County... 7,000 7.000 Elwood-Goleta
22.000 22,000
Wilbarger County
11,650 11,700 Huntington Beech
22,000 22,000
of which would not be felt normally for several weeks.
West Central TexasInglewood
13.600 13,600
South Young County... 4,600 4,850 Kettleman Hills
61.500 59,200
Movement of grade C bunker fuel oil continues on a
Weal Texas-Long Beach
76,200 75.000
.4
Crane
Upton
Countke
Midway
21,800
22.500
-Sunset
steady basis with prices firm and unchanged at 60c. a Enter County
50,200 51,200
6,300 6,400 Plays Del Rey
22,000 23.000
barrel, at refinery. Diesel is in the same position, with its Howard County
24,650 24,600 Santa Fe Syringe
63,300 63.400
Reagan County-. -- 29,450 30,200 Seal Beach
18,700 13,700
price holding firm at $1.30 per gallon, also at refinery.
Winkler CountY
85,100 35,100 Ventura Avenue
40.800 88.700
Yates
65,400 65,400 Pennsylvania GradePrice changes follow:
Balance Pecos County
2,900 2,050 Allegany
8,100 7,800
East Central TansBradford
Dec. 22.-Standard 011 Co. of New York reduces tank wagon prices
29,200 29,400
Zandt County
49,850 49,800 Kane to Butler
6,400 6,000
lc. per gallon in Buffalo and Rochester: same company reduces kerosene Van
East TexasSoutheastern Ohio
6,200 5,850
prices 131c. per gallon, tank wagon and service station in Buffalo and Rusk Co:Joiner
129,350 138,550 Southwestern Penna... 3,400 3,100
Kilgore
Rochester.
127,650 134,900 West Virginia
12,750
13,380
Gregg Co.. Longview-130,050 137,450
Gasoline, U. S. Motor, Tank Car Lots. P.0.13. Refinery.
N.Y.(Bayonne)New YorkNew Orleans,ex.3.05-.053f
Stand. Oil, N.3_60.065
Colonial-Beacon.$0.06
Arkansas
04-.0434 Bulk Terminal Stocks of Gasoline and Gasoline
Stand.011, N.Y. .0654
in
Crew Levick--- .08M California
.05-.07
Tide Water Oil Co .06
z Texas
.06
Los Angeles. ex_ .0441-.07
Transit Again Increase.
Richtiel0011(0a0 .0554
Gulf
.06
Gulf Ports
.05-0554
Warner-Quin. Co .0854
Continental
The American Petroleum Institute below presents the
.06
Tulsa
043i-.05
Pan-Am.Pet.Co. .08
Republic 011
.08
Pennsylvania- _
.0531 amount of gasoline held
Shell Eastern Pet .08
by refining companies in bulk ter
Chicago
5.035i-.04
s "Texaco" Is 07.
minals and in transit thereto, by Bureau of
Gasoline, Service Station,Tax Included.
g 143 CincinnatL
3 18 Kansas City
$ 149
195 Cleveland
18 Minneapolis
.162
159 Deaver
19 New Orleans
118
HI Detroit
.131 Philadelphia
11
14( Houeton
13 San Francisco
17
la Jacksonville
19 St. Loula
129
Kerosene, 41-43 Water White, Tank Car Lots. F.O.B. Refinery.
N.Y.(Bayonne).05H-8.06 I Chicago
5.02%-.03ti'New Orleans, ex--$0.03)4
North Texas
.113 I Los Ang..ex__ .0444-.08 I Tulsa
0434-.0333
Fuel 011. P.0.13. Refinery or Terminal.
N. Y. (Bayonne)California 27 plus D
Gulf Coast "C"--8.55-.65
Bunker "C"
3.60
5.75-1.00 I Chicago 18-22 D..423Z-.50
Di
Diesel 28-30 D.-- 1.30!New Orleans "C--.55
New York
Atlanta
Baltimore
Boston
Buffalo
Chicago
Gas OIL F.O.B. Refinery or Terminal.
N. Y.(Bayonne)I Tulsa28 D plus..__e.034j-.04!ChicagoI 32-36 D Ind-S.0144-.02 I 32-36 n Ind- 3.013(-.02
http://fraser.stlouisfed.org/
sr
Federal
Reserve Bank of St. Louis
districts, east of California.
follows:
Mines' refiningThe Institute's statement
It should be borne definitely in mind that comparable quantltitles
of
gasoline have always existed at similar locations as an integral
part of the
system of distribution necessary to deliver gasoline from the points
of
manufacture to the ultimate consumer. While it might appear to some that
these quantities represent newly found stocks of this product,
the industry
itself and those closely connected with it, have always generally known
of their existence. The report for the week ending Aug. 22 1931 was tho
first time that definite statistics had ever been presented covering the
amount of such stocks. The publication of this information is in line with
the Institute's policy to collect, and publish in the aggregate, statistical
information of interest and value to the petroleum industry.
For the purpose of these statistics, which will be issued each week, a
bulk terminal Is any installation, the primary function of which is to
supply other smaller installations by tank cars, barges, pipe lines or the
longer haul tank trucks. The smaller installations referred to, the stocks
of which are not included, are those whose primary function is to supply
the local retail trade.
Up to Aug.22 1931,statistics covering stocks of gasoline east of California
reflected stocks held at refineries only, while for the past several years
California gasoline stocks figures have included, and will continue to
Include, the total inventory of finished gasoline and engine distillate held
by reporting companies wherever located within continental United States,
that is, at refineries, water terminals and all sales distributing stations
Including amounts in transit thereto.
District.
Gasoline at "Bulk Terminals."
Gasoline "in 7'ransii."
Figures End of Week.
Dec. 20
Dec. 12
Dec. 19
1931.
1930.
1931.
Figures End of Week.
Dec. 19 Dec. 12 Dec. 20
1930.
1931.
1931.
6,596.000 6,641.000 7,099,000 1,912.000 1,709,000 1,864,000
East Coast
372,000
417.000
379.1300
Appalachian
9,000
47,000
3,076,000 3,130,000 2,068,000
Ind.. III.. Ky
463.000
533,000
Okla. Kan., Mo..
51,000
182,000
258.000
240.000
Texas
390,000
80.000
314,000
19.000
419,000
Lotasiana-Arkan_ _
Rocky Mountain_
Total east of Calif.. 11,243,000 11,178,000 10,156,000 1,978,000 1,708,000 1,915,000
Texas Gulf
Louisiana Gulf__
206,000
308,000
4229
FINANCIAL CHRONICLE
DEC. 26 1931.]
224,000
246,000
154,000
362,000
average of 72,571 barrels for the week ended Nov. 28. The
Institute's statement follows:
CALIFORNIA OIL RECEIPTS AT ATLANTIC AND GULF COAST PORTS
(Barrels of 42 gallons)
Week Ended
Month of
November,
At Atlantic Coast PortsBaltimore
Boston
New York
Philadelphia
Others
Nos. 211.
30,000
73,000
35,000
598.000
.518,000
289,000
142,000
172,000
231,000
1,061,000
35,367
1,513,000
48,806
142,000
20,286
433,000
61,857
101,000
3.366
103.000
3,323
60.000
8,571
75,000
10,714
1,162,000
38,733
1,616,000
52,129
202,000
28,857
508,000
72,571
30,000
684,000
347,000
Total
Daily average
At Gulf Coast PortsTotal
Daily average
At Atlantic eit Gulf Coast PortsTotal
Daily average
Dec. 5.
October.
DISTRIBUTION OF TOTAL CALIFORNIA OIL RECEIPTS IS AS FOLLOWS:
(Barrels of 42 gallons)
51.000
80.000
Month of
November.
October.
Week Ended
Dec. 5.
Nov.28.
Imports of Petroleum at Principal United States Ports
Al Atlantic Coast Ports430.000
142,000
963.000 1,513,000
Declined in November.
Gasoline
95,000
Fuel oil
3.000
3,000
According to figures collected by the American Petroleum Lubricanta
433,090
142,000
Institute, imports of petroleum, (crude and refined oils) at
1,061,000 1,513,000
Total
At Gulf Coast Portsthe principal ports for the month of November, totaled Gasoline
75,000
60,000
103,000
101,000
daily
a
barrels,
average
183,129
of
barrels, com5,677,000
75,000
60,000
103,000
101,000
Total
pared with 7,851,000 barrels, a daily average of 253,258
barrels for the month of October.
Imports at the principal United States Ports for the week
Weekly Refinery Statistics for the United States.
ended Dec. 5, totaled 1,432,000 barrels, a daily average of
204,571 barrels, compared with 1,153,000 barrels, a daily
Reports compiled by the American Petroleum Institute for
average of 204,571 barrels, compared with 1,153,000 barrels, the week ended Dec. 19 from companies aggregating 3,665,a daily average of 164,714 barrels for the week ended Nov.28. 600 barrels, or 95.2% of the 3,852,000 barrel estimated daily
The Institute in its statement shows:
potential refining capacity of the United States, indicate
IMPORTS OF PETROLEUM AT PRINCIPAL UNITED STATES PORTS. that 2,317,300 barrels of crude oil were run to stills daily,
(Barrels of 42 gallons)
and that these same companies had in storage at refineries
at the end of the week, 35,936,000 barrels of gasoline, and
Month of
Week Ended
133,908,000 barrels of gas and fuel oil. Reports received on
November.
October.
Noy. 28.
Dec. 5.
the production of gasoline by the cracking process indicate
At Atlantic Coast Ports1,441.000 1,665,000
a247,000
Baltimore
that companies owning 95.6% of the potential charging Capa449,000
864,000
Boston
123.000
65,000
barrels of
New York
1,550,000 3,124,000
706,000
505,000 city of all cracking units, manufactured 3,245,000
829,000
858,000
202,000
Philadelphia
complete
report
for
The
week.
the
during
gasoline
cracked
389,000 1,260,000
Others
154,000
288.000
week ended Dec. 19 1931, follows:
the
5.102,000 7,327,000 1,432,000
Total
858,000
Daily average
At Gulf Coast PortsGalveston District
New Orleans & Baton Rouge.Port Arthur & Sabine district....
Tampa
Total
Daily average
At ail United Slates PortsTotal
Daily average
164,581
236.355
118,000
325,000
91,000
41,000
189.000
213,000
65,000
57.000
58.000
131,000
65,000
41,000
575,000
18,548
524,000
16,903
295,000
42,143
5,677,000
183,129
7,851,000
253,258
204,571
1.432,000
204,571
122,571
1,153,000
164,714
DISTRIBUTION OF TOTAL IMPORTS.
(Barrels of 42 gallons)
Month of
November.
Crude
Gasoline
Gas oll
Fuel oil
3,320,000
530,000
92,000
1,735,000
October.
4,215,000
1,045,000
63,000
2,528,000
Week Ended
Dec. 5.
789,000
294,000
349,000
Nov. 28.
596,000
114,000
443,000
5,677,000 7,851.000 1,432.000 1,153,000
a Of this total, 65,000 barrels of gasoline were imported in the Italian "S. El
Arcola" from Constanza, Roumania, arriving Dec. 1 1931.
Total
CRUDE RUNS TO STILLS, GASOLINE STOCKS AND GAS AND FUEL OIL
STOCKS, WEEK ENDED DEC. 19 1931.
(Figures In Barrels 01 42 Gallons.)
District.
Per Cent
Potential
Capacity
Reportfag.
Crude
Runs to
Stills.
Per Cent
over.
of Total a Gasoline
Stocks.
Capacity
Report.
Gas and
Feel Oa
Blocks.
100.0
East Coast
91.8
Appalachian
Ind., Illinois, Kentucky 98.9
Okla., Kans., Missouri. 89.6
91.3
Texas
Louisiana-Arkansas.- 98.9
89.4
Rocky Mountain
97.1
California
8,171,000
683,000
2,137,000
1,663,000
3,950,000
1,217,000
282,000
3,118,000
71.5
71.0
70.8
54.6
73.7
75.4
28.0
50.2
4.293,000
1,292,000
3,972,000
3,324,000
7,463,000
1,185,000
1,566,000
*12,841.000
9,209,000
1,679.000
5,528,000
4,305,000
11,848,000
4,030,000
800,000
96,509,000
Total week Dec. 19
Daily average
Total week Dec. 12_
Daily average
95.2
16,221,000
2,317,300
15,896,000
2.270,900
63.2
35,936,000
133,908,000
95.2
62.0
34,826,000
133,964,000
Total Dec. 20 1930
Daily average
95.7
16,332,000
2,333,100
65.3
b37,074,000
137,017,000
99.8
Texas Gulf Coast
T.nilichinri Gulf Coast__ 100.0
3,070,000
820.000
82.5
79.4
5.756.000
1.043.000
8,787,000
3.239.000
•In California, they represent the total Inventory oft nished gasoline and engine
Gross Crude Oil Stock Changes for November.
distillate held by reporting companies wherever located within continental United
(stocks at refineries, water terminals and all sales distributing stations, InPipe line and tank farm gross domestic crude oil stocks States
cluding products in transit thereto). a In all the refining cUstricts indicated except
figures in this column represent gasoline stocks at refineries. b Revised
increased
California,
Mountains
2,008,000 barrels
east of the Rocky
In Indiana-Illinois district, due to transfer to "bulk terminals" of stocks previously
in the month of November, according to returns compiled reported as "at refineries."
-All figures follow exactly the present Bureau of Mines' definitions. Crude
by the American Petroleum Institute from reports made to oilNote.
runs to stills include both foreign and domestic crude. In California. stocks of
crude
heavy
it by representative companies. The net change shown by oil stocks." and all grades of fuel oil are Included under the heading "gas and fuel
the reporting companies accounts for the increases and
decreases in general crude oil stocks, including crude oil in
Oklahoma to Cut Crude Oil Output-State Will Order
transit, but not producers' stocks at the wells.
Allowable of 475,000 Barrels a Day Against 546,000.
The following from Tulsa, Okla., Dec. 24, is from the
Receipts of California Oil at Atlantic and Gulf Coast
New York "Evening Post":
Ports Fall Off in November.
Crude oil output allocation for the various areas of Oklahoma for the
Receipts of California oil, (crude and refined) at Atlantic first three months of 1932, as listed by the Corporation Commission to-day
a preliminary to its proration order, placed total allowable at 475,000
and Gulf Coast Ports for the month of November, totaled In
barrels a day, against the present allowable of 546,000 barrels.
1,061,000 barrels, a daily average of 38,733 barrels,compared
The allocation would give Oklahoma City 160,000 barrels, against
with 1,616,000 barrels, a daily average of 52,129 barrels for 180,000; Seminole, 135,000 barrels, against 150,000, and balance of the
would be allowed 180,000 barrels.
the month of October, reports the American Petroleum State
The Producers & Refiners Co. announced its Tulsa plant will be shut
Institute.
clown ten days to clean up stocks accumulated since the decline In conReceipts at Atlantic and Gulf Coast Ports for the week sumption.
It also was announced that the Standard Oil Co. of Indiana would
ended Dec. 5, totaled 202,000 barrels, a daily average of shut down all of its refineries on Sundays to reduce production of gasoline
compared
with
barrels,
508,000
a
barrels,
daily and other products during the period of seasonal decline in demand.
28,857
4230
FINANCIAL CHRONICLE
Unusual Activity in Metals Markets-Curtailment News
Revives Interest in Copper.
In the last week the metal markets have given the best
account of themselves that they have given for several weeks,
reports"Metal and Mineral Markets," under date of Dec.24,
adding:
/ Following the announcement of the agreement on further curtailment of
copper production, demand was heavy, bringing about an increase in the
price to 7 .S•i, cents, delivered, but consumers have been out of the market
since Friday.
Both lead and zinc have sold in the best tonnage since early November,
with prices firm but unchanged. Silver closed the week yesterday at a net
advance of one cent and bin gained a fraction of a cent for the period.
Copper has had a most interesting week. Early in the period demand was
good, but in the last two days buying almost completely evaporated at
754 cents. The sales total for the week, however, was well over 10.000
tons, the bulk of which was for second quarter shipment.
Custom smelters and large producers are alike for the first time in months
in their attitude toward the market. Everyone,consumers included, would
like to see 8 cent copper or better on their year-end inventories.
Foreign business, especially from France, Italy and Belgium and Scandinavia, was excellent for a few days. The month's total booked by Copper
Exporters Is now about 27,000 tons.
International Tin Pool Raises Release Prices-Tin
Exports Less.
From its Paris bureau the "Wall Street Journal" of Dec.
19 reported the following from Paris:
I
{voL. 133.
in January, but just how much will depend upon when assemblies are
started by the Ford plants.
Signs are lacking of improvement in takings of steel by the railroads and
the building construction industry, but the farm implement industry has
released fairly large orders for pig iron at St. Louis, indicating nearby
increase in activity.
Building work in the week took only 14,000 tons of structural steel, of
which 3.300 tons will be used in the First National Bank Building, New
York. New projects call for 22.500 tons, including 7.300 tons for a hotel
in Chicago and 5.000 tons for a Federal building in San Francisco.
An order for 1,200 tons of plates for the repair of 500 Chicago Great
Western cars is outstanding in the railroad equipment field and indicative
of the small amount of railroad buying. However, some roads are taking
prices on their general requirements for first quarter.
Independent sheet steel manufacturers operated in November at an average of 27%, or three points below the ingot output for the country. Sales
were also at the same rate, while shipments declined to less than 25%
of capacity. November was the poorest month of the year for the sheet
mills
Makers of bars, plates and shapes are quoting 1.60c. a lb.. Pittsburgh,
for first-quarter contracts. This price is holding in most instances on
bars, but open quotations on plates and shapes are still frequently $2 a
ton less, with even sharper concessions on some of the larger tonnages of
structural shapes. In this situation ,some users of bars are bringing pressure
for a reduction on that commodity, but mills have contracted with a part
of their trade at 1.60c. Cold-finished steel bars have been formally reduced
$2 a ton to 2c., Pittsburgh, Cleveland and Buffalo.
Other price declines include $I a ton off on skein. $2 a ton on track spikes,
86 a ton on track bolts, 15c, a ton on furnace coke and $2 a ton on charcoal
pig iron.
This week's changes bring the "Iron Age" finished steel composite price
down to 2.075c. a lb., the low of the year, and the lowest since April, 1922.
when quotations had risen above the extreme post-war dip to 1.998c, a
lb. in February, 1922. The present level Is 81.54 a net ton above that
point. The recovery in prices in 1922 was preceded by a rising trend in
operations. A comparative table shows:
Nlinirnum release price for holdings of the International tin pool's holdings
has been raised to E165 a long ton. from E150, sterling, under the revised
quota control scheme agreed to by participating members of the pool.
At £165. only 5% of the holdings are releasable, and then only provided
Finished Steel.
that the average spot price at London has remained higher during any
Dec. 22 1931. 2.075c. a Lb.
Based on steel bars, beams, tank plates.
preceding calendar month. At £176, the next price on the revised sliding One week ago
2.095a.
wire, rails, black pipe and sheet&
2.116o. These products make 87% of the
scale, 10% of the holdings become releasable. Members of the pool One month ago
2.121o, I
United
llI
d States output.
have agreed to abide by the scheme for a period of three years from Aug 12. One year ago
or until the pool has been liquidated. Pool stocks now total 19,000 tons
grim.
Low.
International Tin Committee reports that members' exports of tin In
2.142c. Jan. 13
2.075e. Dec. 22
2.362o. Jan, 7
November came to 8,192 tons, against 9,761 tons in October. The drop 11993301
2.121c. Deo. 5
19292.412c. Apr. 2
2.362o. Oct. 25
In exports from Malay States to 2,608 tons from 3,386 tons is considered 1928
2.391c. Dec. 11
2.314o, Jan. 3
particularly satisfactory. Further cut In production at the rate of 15,000
2.453o. Jan, 4
2.2930, Oct. 25
2.4530. Jan. 5
tons yearly, as recommended at the pool's previous meeting, goes into
2.4030. May 18
11999222567
2.560o. Jan. 6
effect Jan. 1 1932.
2.396o. Aug. 18
Pig Iron.
Cement and Concrete Factories in Holland to Curb
Dec. 22 1931, 314.79 a Gross Ton. filmed on average of basic Iron at Valley
One week ago
$14.791 furnace and foundry irons at Chicago.
Output.
One month ago
14.96[ Philadelphia. Buffalo, Valley and 111rOne year ago
15.90
mingham.
message Dec. 4 from
New
A wireless
York "Times" stated:
Amsterdam to the
Most of the large cement and concrete factories In Holland will be closed
after Jan. I, and the army of unemployed will be increased by several
thousand.
The decision was made at Arnhem by the owners and will first affect
those plants with ring furnaces. Plants with reverberating furnaces
will halt their production of bricks.
After May, it is expected. 25% fewer laborers will be needed because
of the large amount of unbaked stone on hand in the factories now to
be closed.
Ougree Marihaye Elected President of International
Wire Cartel at Brussels.
Associated Press advices from Brussels Dec. 21 stated:
Ougree Marihaye was elected President of a new international wire
cartel organized to day for a five-year period. Production for the first
three months of 1932 has been fixed at 360,000 tons.
Steel Production Falls to 21% of Capacity, Due in Part
to Holiday Shutdown-Price of Finished Steel
Lowest Since April, 1922.
Downward readjustment of prices of some steel products,
notably sheets, and continued weakness in others mark
the year-end recession of activity in metal-working industries,
reports the "Iron Ago" of Dec. 24, which further adds as
follows:
Several makers of sheets are soliciting business at concessions of $2
stabilization
a ton from prices that were put into effect on July 1, when a
the third quarter
Program was inaugurated that held fiarly firm through
and most of the fourth. A recent break in automobile body sheets and seine
to all of the
other finishes used by the motor car manufacturers has spread
having
more commonly used grades. Makers of hot-rolled strip steel,
are trycompanies,
automobile
to
ton
granted the usual concession of $1 a
ing to prevent this from becoming general.
Holiday shutdowns have reduced the rate of ingot production for the week
someto 21% of the country's capacity, but finishing mills may operate at
than
what higher schedules, as the idleness is more general In steel-making
in rolling departments. Although the Pittsburgh district has sharply
curtailed to 15% for ingot output, the Chicago district, at 23%, has made
a slight gain over last week, and there is some improvement also in the
Valleys, while Cleveland mills will operate a part of the week at last week's
32% rate.
It appears clear that general consumption of steel yas shown no marked
change. but curtailment is forced by the unwillingness of consumers and
distributers to take in material until after Jan. 1. Most of the current
orders are for January shipment. On the basis of these orders, together
with expected replenishment buying and larger releases from the automobile industry, many of the steel companies believe they will be able to resume operations early in January at rates varying from 30 to 35%.
Steel buying in larger volume by the automobile industry is momentarily
expected, little having been bought for first quarter. The change in plans
by the Ford Motor Co. has not only held back the commitments of that
motor car maker, but is believed to have had a halting effect on schedules of
competitive companies. December output of cars Is estimated at nearly
100,000, against about 65,500 in November. A further gain is expected
High.
Low.
$15.90 Jan. 6
$14.79 Dec. 15
18.21 Jan. 7
15.90 Dec. 16
18.71 May 14
18.21 Dec. 17
18.59 Nov. 27
17.04 July 24
19.71 Jan. 4
17.54 Nov. 1
21.54 Jan. 6
10.46 July 13
22.50 Jan. 13
18.96 July 7
Steel Scrap.
Dee. 22 1931. $8.58 a Gross Ton.
Based on heavy melting steel quoOne week ago
$8.58
ca
ag
t0.11ttsburgh, Philadelphia
,75 and Chicago.
One month ago
One year ago
11.25
11106.
Low.
511.33 Jan. 6
$8.58 Dec. 8
1
1993031
15.00 Feb. 18
11.25 Deo. 9
1920
17.58 Jun. 2914.08 Dec.Deo 3
8
1927
16.50 Dec. 31
13.08 July 2
15.26 Jan. 11
13.08 Nov. 22
17.25 Jan, 5
14.00 June 1
9
1192256
20.83 Jan. 13
15.08 May 2
193
930
1
1929
1928
1927
1926
1925
In a summary of the iron and steel markets, "Steel" of
Cl veland, Dec. 21, said:
Unusually early and unusually rapidly, the iron and steel markets are
sinking into the year-end lethargy. Consistent with demand, steolinaking
operations have declined more than 1 point to about 24%. and for this
week.
due to Christmas holiday interruptions, the average will be a scant
20%•
The steel making rate will lose much of its significance until the
first
week of January because of a number of producers will be closed entirely,
except for banked blast furnaces, until after New Year's Day. As consumption of steel also will be taking a holiday, orders will not
accumulate
as might otherwise be expected.
The combination of an unsettled price structure and restricted
demand
removes any incentive for consumers to cover for first quarter, and
except
at Chicago there is practically no inquiry for that delivery. At St.
Louis
some purchasers of pig Iron have anticipated requirements because of
the
advance in freight rates effective early in January, but steel buyers
have
not been moved by this consideration.
Despite repeated disappointments, tile steel trade still looks to
the
automotive industry for the first signs of expansion. Ford, after
much
hesitation, Is reliably reported to have decided to meet intensified
competition in the low-price field with a multicyllnder car. probably a
V-eight,
and is expected shortly to release substantial orders.
Lacking the spur of
other models In its field, Chevrolet has slackened Its pace.
If the railroad wage situation is adjusted shortly by a
reduction, as
expected, some Increase In business should result from
maintenance and
repair work. Moderate size inquiries for general first
quarter steel needs
have emanated from the New York Central, Norfolk &
Western, Virginia,
Lackawanna, Chesapeake & Ohlo,and Chicago Great
Western, on which
bids will be submitted this week.
American tin-plate makers, whose operations recently
have been higher
than those In any other department of the industry,
are facing intense
competition from foreign sources, with Increasing
production in France,
Italy. Japan and Spain excluding considerable
American material from
these markets. Standard 011 of New Jersey is to
close soon on 100,000
base boxes.
Structural shape awards for the week,8,480 tons, apparently reached
the
low point for the year, though action on 16.000
tons for the Pittsburgh
post office is expected shortly. Fresh inquiry, amounting to
19.315 tons,
Is fairly encouraging. For vessels recently placed,
the Sun Shipbuilding
Co. has distributed 10,000 tons of shapes, plates and bars among
four
producers.
Price adjustments continue the most conspicuous feature of market
developments. Important makers of bars, shapes and plates have re-
DEC. 26 19311
affirmed for the first quarter the 1.60c., Pittsburgh base, which for plates
and shapes has been largely nominal. Deep concessions are being offered
in strip and sheets to automotive manufacturers. Railroad spikes and
tie plates have been reduced 52 a ton.
Sheet bars are off $I a ton at Pittsburgh. Youngstown and Cleveland.
Pig iron has been reduced 50 cents a ton at Pittsburgh, following similar
action by valley producers. The Birmingham base on pig iron is weak;
southern coke is down 50 cents, and Connellsville furnace grade 10 cents.
"Steel's" composite of iron and steel prices now is $30.28, eight cents
lower than last week; the finished steel composite remains at $48.82, while
that for steelworks scrap is down 5 cents to $8.14.
Indications are that the curtailment in the steel industry
during the Christmas holiday period this year will not be
as large as in the past three years the "Wall Street Journal"
of Dec. 22 says. Estimates now are that for the week
ended next Monday (Nov. 28) the average production
of steel ingots for the entire industry may droop to somewhat below 20% of theoretical capacity. This would
be a reduction of 4% to 5% from the rate of slightly less than
24% for the week ended last Monday (Dec. 21), adds the
"Journal" which further states:
Such a reduction would compare with 11% in the rate of the U. S. Steel
Corp. to 30% in the Christmas week of last year, with 10% in that of the
leading independents to 30%. and with more than 10% in the average for
the industry, to 24%.
For the holiday week of 1929 the average went down over 13% to between
39% and 40% of theoretical capacity, United States Steel showed a reduction of 14% to 50%. while leading independents dropped more than 13%
to slightly better than 30%.
It was in the Christmas week of 1928 that the sharpest reductions were
made. They amounted to from 22% to 28% and the various companies
reported rates ranging from 55% to 60%.
Of course, the curtailment in the past three years started from a higher
percentage rate of operation than in the current instances. Nevertheless
the proportionate drop anticipated for this year Is smaller than in those
periods. This is viewed as encouraging by interests in the steel industry.
For the week ended Dec. 21 the average of steel ingot prothiction is
estimated at slightly under 24% of theoretical capacity. This compares
with a fraction under 25% in the preceding week and better than 26% two
weeks ago.
United States Steel is placed at about 25%. contrasted with a shade
below 26% in the week before and 27% two weeks ago. Leading
independents are fractionally above 23%, against better than 24% a week
ago
and somewhat under 26% two weeks ago.
Bituminous Coal Output Continued Below Last Year's
Figure-Anthracite Production Shows a Sliglit
Increase.
According to the United States Bureau of Mines, Department of Commerce, production during the week ended
Dec. 12 1931 amounted to 7,274,000 not tons of bituminous
coal, 1,246,000 tons of Pennsylvania anthracite and 21,560
tons of beehive coke, as compared with 8,784,000 tons of
bituminous coal, 1,209,000 tons of Pennsylvania anthracite
and 40,300 tons of beehive coke produced during the same
week a year ago and 7,226,000 tons of bituminous coat,
1,240,000 tons of Pennsylvania anthracite and 19,000 to
of beehive coke during the week ended Dec. 5 1931. During the calendar year to Dec. 12 1931 output of
bituminous coal totalled 360,943,000 tons as against 438,404,000 tons in tho calendar year to Dec. 13 1930. The
Bureau's statement follows:
BITUMINOUS COAL.
The total production of bituminous coal during the week ended
Dec. 12
1931. Including lignite and coal coked at the mines,is estimated at
7,274,000
net tons. Compared with the output in the preceding week, this
shows an
increase of 48.000 tons, or 0.7%.
Estimated United States Production of Bituminous Coal (Net Tons).
1931
1930
Cal. Year.
Cal. Year
Week EndedWeek.
to Date.
Week.
to Datesa
Nov. 28
6,430,000
346,443,000
8,705.000
420.013.000
Daily average
1,261.000
1.236.000
1,674.000
1,500.000
Dec. 5 b
353.669.000
7 226,000
9,607.000
429,620.000
Daily average
1,204,000
1,235,000
1,601,000
1,502.000
Dec. 12_ c
360.943.000
7.274.000
8.784.000
438.904.000
Daily average
1,212,000
1.235,000
1,464.000
1,501 000
a Minus one day's production first week In January to equalize number
of days
In the two years. b Revised since last report. c Subject to revision.
The total production of soft coal during the present calendar year
to Dec.
12 (approximately 292 working days) amounts to 360,943.000 net
tons.
Figures for corresponding periods in other recent calendar years are
given
below:
1930
1929
483,404,000 net tons)1928
507.838,000 net tonsI1927
4231
FINANCIAL CHRONICLE
Estimated Weekly Production of Coal by States (Net Tons).
Dec. 1923
Week Ended
Dec. 531. Nov.28 '31. Dec.630. Dec. 7 '29. Average.a
349.000
427.000
297.000
188.000
208.000
47.00052.00025.000
23.000
29,000
253,000
299,000
236.000
189,000
158,000
827.000 1,310.000 1,744.000 1,535.000
1.071.000
395,000
474.000
514.000
187.000
230.000
121.000
116,000
02.000
63,000
75,000
Iowa
90,000
74.000
68.000
52.000
60.000
Kansas
584.000
982.000
796.000
477,000
563,000
Kentucky-Eastern
204.000
368.000
202.000
151,000
185.000
Western
37.000
62.000
52.000
34,000
39.000
Maryland
21.000
19.000
23,000
9,000
11,000
Michigan
69.000
114.000
65.000
65,000
80.000
Missouri
82.000
70.000
64.000
67.000
70.000
Montana
61.000
40.000
56.000
32,000
36,000
New Mexico
27,000
59.000
96.000
42.000
46.000
North Dakota
593.000
565.000
599.000
316.000
Ohio
441.000
58,000
108.000
63.000
32,000
38.000
Oklahoma
Pennsylvania(bituminous) 1,595.000 1,488,000 2,291,000 2,796 000 2.818.000
113.000
108.000
103.000
64.000
74.000
Tennessee
18.000
13,000
21.000
10.000
11.000
Texas
100.000
143.000
130.000
139.000
144,000
Utah
193.000
260 000
228.000
168.000
194.000
Virginia
60.000
61,000
57.000
45,000
49,000
Washington
1,281.000 1,146.000 1,658.000 2,041.000 1,132.000
W. va.-Southern_b
716.000
692.000
612.000
431.000
446.000
Northern.c
156.000
173.000
135.000
137.000
Wyoming
132.000
5,000
5.000
4.000
5,000
3,000
Other States
StateAlabama
Arkansas
Colorado
Illinois
Indiana
Total liltutninou.s coal__ 7.226.000 6,430.000 9,607.000 11.942.000 9.900,000
641,000 1,685.000 1,852.000 1.806.000
Penusyl vanht anthracite__ 1,240.000
Total all coal
8.466.000 7.071.000 11,292.000 13.794,000 11.706,000
Average weekly rate for the entire month. b Includes operations on the N. W.
C.& O.; Virginian, and K.dt M. c Rest of State. including Panhandle.
BEEHIVE COKE.
The total production of beehive coke during the week ended Dec. 12 is
estimated at 21,500 net tons. This compares with 19,000 tons produced
during the preceding week, and 1,228,300 tons in the week of 1930 corresponding with that of Dec. 12.
Estimated Weekly Production of Beehive Coke (Net Tons).
1930.
1931.
Week Ended
to
to
Dec. 13
Dec. 5
Dec. 12
Date.
Date.
1930.
1931.
l931.b
Region970,500 1,950.500
28.800
14,700
Pennsylvania
17.900
411,000
104.500
5.300
1,400
1.000
West Virginia
103.700
230.200
4,600
1,700
1,500
Tennessee and Virginia
101,400
49.600
1.600
1,200
1,100
Colo.. Utah and Wash
40,300 1,228.300 2,693,100
19,000
21,500
United States total
4,150
6,717
9,098
3,167
3,583
Daily average
- a Minus one day's production first week in January to equable number Of daysji
revision.
the two years. b Subject to
November Production of Bituminous Coal and Anthracite Shows Sharp Decline.
According to revised figures released by the United States
Bureau of Mines, Department of Commerce, 30,110,000 net
tons of bituminous coal and 4,141,000 tons of anthracitewere produced during the month of November, 1931. This
compares with 38,609,000 tons of bituminous coal and 5,176,000 tons of anthracite produced in the corresponding month
last year and 35,700,000 tons of bituminous coal and 6,551,000 tons of anthracite during the month of October, 1931.
Statistics follow:
MONTHLY PRODUCTION OF BITUMINOUS COAL AND ANTHRACITE
IN NOVEMBER (NET TONS).
Bituminous.
Month.
Anthracite.
No. of Average
No. of Average
Total
Working per Work..
Total
Working per WorkProduction. Days. ing Day. Production. Days. tng Day.
31.919.000
1931-September
35.700,000
October
November a_ 30,110,000
25.3
27
23.6
1,262,000 4,358,000
1,322.000 6,551.000
1.276,000 4,141,000
25
26
23
174.300
252.000
180,000
1930-November b_ 38,609,000
a Revised. b Final figures.
23.3
1,657,000 5.176,000
23
225,000
Recommendations of Committee of U. S. Chamber of
Commerce Regarding Development of Employees'
Annuity or Pension Plans.
Ten recommendations looking towards improvement and
development of employees' retirement annuity or pension
plans are made by a special committee of the Chamber of
Commerce of the United States. The report will be placed
before the membership of the Chamber for action at the
next annual meeting. The recommendations advanced by
the committee follow:
1. Regard for the personal interests of their employees, for the welfare
of society in general and for efficient administration of their own enterprises should prompt employers to develop some method for aiding in
PENNS'S(LVANIA ANTHRACITE.
providing for the financial security of their superannuated employees.
The production of anthracite in the State of Pennsylvania showed
little
2. The retirement of superannuated employees of long service on annuichange during the week ended Dec. 12. Total output is estimated at
ties is an aid to the profitable and efficient administration of business enter1,246,000 net tons, 6,000 tons more than in the preceding week.
Produc- prises and is advantageous to employers, to employees and to the
public.
tion during the week in 1930 corresponding with that of Dec. 12 amounted
The annuity plan should provide for reasonable minimum payment.
to 1,209,000 tons.
3. The adoption of a definite retirement annuity plan should be given
Estimated Production of Pennsylvania Anthracite (Net Tons).
mature consideration by the management of every enterprise which has or
1931
1930
-- Is likely to have employees of long service, so that it may be in a position
Daily
Daily
to make equitable provision for their eventual retirement.
Week EndedWeek.
Averaoe.
Week.
Ateraoe.
Nov. 28
641,000
4. Careful consideration should be given to the question of whether the
1,080,000
128,200
216,000
1,240,000
Dec. 5
206,700
1,685,000
280,000 entire expense of the retirement annuity plan should be borne by the em1,246,000
Dec. 12
1,209,000
207,700
201,500 ployer, or whether the plan should contain provision for
participation by
As already indicated by the revised figures above, the total production of the employees in the cost of the plan.
soft coal for the country as a whole during the week ended Doc. 5 is
5. While the particular details to be made a part of a retirement annuity
estimated at 7,226,000 net tons. Compared with the output in the pre- plan are affected by the nature of the enterprise, it is essential
that definite
ceding week, when working time was curtailed by the Thanksgiving Day provisions be incorporated specifying employees covered,
retirement ages,
holiday, this shows a gain of 796,000 tons. The following table apportions service requirements, and the amounts payable upon
retirement.
Some
the tonnage by States and gives comparable figures for other recent years. provision also should be included for the retirement, in the
discretion of
475.058.000 net tons
490,965,000 net tons
4232
r VOL. 133.
FINANCIAL CHRONICLE
the management, of employees who, because of disability, become incapacitated for further service.
6. Although the importance of a well rounded employee thrift program
is recognized, such a program cannot take the place of an adequate retirement system.
7. Funds which either employers or employees have paid into a contributory plan should be fully safeguarded either through insurance or
trust 11$16.ds. Even in the case of a non-contributory plan, it is important
for the company to set aside and safeguard as fully as possible a fund to
cover its liabilities under the plan adopted.
8. A progressive step toward assuring the benefits of employees' retirement annuities to the large number of employees who do not remain with
the same employer until reaching the retirement age would be for employers
having annuity plans to permit employees whose connection with the company is terminated after a reasonable period of service to retain their
annuity credits, properly safeguarded, to help provide for their old age.
9. The adoption of public old age pension or relief Acts should not deter
employers from making provision for their own retired employees, since
the trend of such legislation, in the United States, is in the direction of
making provision solely for the care of aged and impoverished citizens, and
is not ordinarily applicable to employees on the payrolls of private concerns.
In view, however, of the trend throughout the world in pension legislation,
every company annuity plan might well contain a provision that would
enable employers to deduct from the annuities payable to their employees
any sums payable to these employees under public pension Acts, except
those arising out of employees' own contributions.
10. Insofar as State or municipal old age pension or relief Acts make
possible the more humane and more efficient care of aged and impoverished
citizens, such Acts, when properly safeguarded by rigid eligibility requirements and restricted to the relief of the indigent, serve a valid social purpose and are not detrimental to the interests of American business.
Members of the committee making the report are:
Redfield Proctor, Vice-President Vermont Marble Co., Proctor, Vt.,
Chairman;
M. A. Cudlip, Vice-President, Packard Motor Car Co., Detroit, Mich.;
Otto P. Deluge, President Western Furniture Co., Indianapolis. Ind.;
Ernest C. Draper, Vice-President Hills Brothers Co., New York City;
H. W. Forster, Vice-President Brown, Crosby & (Jo., Philadelphia;
James W. Glover, President Teachers' Insurance & Annuity Association
of America, New York City;
Charles W. Gold, President Pilot Life Ins. Co., Greensboro, N. C.
C. J. Hicks, Exec. Asst. to the Pres., Standard Oil Co. of New Jersey.
New York City;
Leroy A. Lincoln, Vice-Pros. Metropolitan Life Ins. Co., N. Y. City;
R. V. Massey, Vice-President in Charge of Personnel, Pennsylvania RR.
Co., Philadelphia;
John W. O'Leary, Vice-Chairman of the Board, Central Republic Bank &
Trust Co., Chicago;
C.0. Sherrill, Vice-President Kroger Grocery & Baking Co., Cincinnati, 0.;
Theodore Swann, President, The Swann Chemical Co., Birmingham, Ala.:
Harold H. Swift. Vice-President Swift 8r Co., Chicago.
Current Events and Discussions
as thus issued in advance of the full statement of the member
banks, which latter will not be available utnil the coming
Monday. The New York statement, of course, also includes
the brokers' loans of reporting member banks. The grand
aggregate of brokers' loans the present week records a decrease of $51,000,000, the amount of these loans on Dec. 23
1931 standing at $611,000,000. The present week's decrease
of $51,000,000 follows a decrease of $28,000,000 last week
On Dec. 23 total Reserve bank credit amounted to $2,006,000,000, an and a decrease of $673,000,000 in the 13 preceding weeks.
increase of $32.000,000 for the week. This increase corresponds with Loans "for own account" decreased during the week from
an increase of $155,000,000 in money in circulation and a decrease of
$555,000,000 to $553,000,000, loans "for account of out-of$51.000,000 in Treasury currency, adjusted, offset in part by a decline of
$167,000,000 in member Bank reserve balances and an increase of $7,000,000 town banks"fell from $98,000,000 to $51,000,000, and loans
In monetary gold stock.
"for account of others" from $29,000,000 to $7,000,000.
Holdings of discounted bills increased $118.000,000 at the Federal
others" has
Reserve Bank of New York,$24.000,000 at Boston,$21,000,000 at Chicago. The amount of these loans "for account of
$20,000,000 at Philadelphia, $16,000,000 at Cleveland, $11,000,000 each been reduced the past six weeks due to the action of the
at Richmond and San Francisco and $213,000,000 at all Federal Reserve New York Clearing House Association on Nov. 5 in restrictbanks. The System's holdings of bills bought in open market declined
$50,000,000. Total holdings of United States securities declined $148,000,- ing member banks on and after Nov. 16 from placing for
000, the reduction of $198,000,000 due to the retirement of the special corporations and others than banks loans secured by stocks,
Treasury certificate held last week being partly offset by increases of
bonds and acceptances. The present week's total of $611,$42,000,000 in holdings of Treasury certificates and bills and $8,000,000
000,000 is the lowest since Feb. 1 1918, when the amount
in bonds and Treasury notes.
•
-Ts-T510,179,000.
Beginning with the statement of May 28 1930 the text Ni
accompanying the weekly condition statement of the Federal CONDITION OF WEEKLY REPORTING MEN.BER BANKS IN CENTRAL
RESERVE CITIES.
Reserve banks was changed to show the amount of Reserve
New York.
bank credit outstanding and certain other items not included
Dec. 25 1931. Dec. 16 1931. Dec. 24 1930.
in the condition statement, such as monetary gold stock
7 175.000,000 7,258,000,000 8,045,000,000
and money in circulation. The Federal Reserve Board's Loans and investments—total
explanation of the changes, together with the definition of Loans—total
4,420,000,000 4,451,000,000 5.749,000,000
the different items, was published in the May 31 1930 issue
On securities
2,208.000,000 3.366,000,000
2,231,000.000
of the "Chronicle," on page 3797.
All other
2,189,000,000 2,243,000,000 2,383,000,000
The statement in full for the week ended Dec. 16,in com- Investments—total
2 755,000,000 2.807,000,000 2.29.5.000,000
parison with the preceding week and with the corresponding
1 778,000,000 1,836,000,000 1,234,000,000
date last year, will be found on subsequent pages, namely, U.S. Government securities
Other securities
977.000,000 971,000,000 1,061,000,000
pages 4291 and 4292.
705,000,000 798,000,000 782,000,000
Changes in the amount of Reserve bank credit outstand- Reserve with Federal Reserve Bank
68,000,000
52,000,000 104,000,000
ing and in related items during the week and the year ended Cash in vault
Net demand deposits
Dec. 23 1931 were as follows:
5,162.000.000 5,376,000,000 5,832.000,000
The Week with the Federal Reserve Banks.
The daily average volume of Federal Reserve bank credit
outstanding during the week ending Dec. 23, as reported
by the Federal Reserve banks, was $1,965,000,000, an increase of $59,000,000 compared with the preceding week
and of $627,000,000 compared with the corresponding week
in 1930. After noting these facts, the Federal Reserve
Board proceeds as follows:
Bills discounted
Bills bought
Special Treasury certificates
Other United States securities
Other Reserve bank credit
Increase (-I-) or Decrease (—)
Since
Dec. 23 1931. Dec. 16 1931. Dec. 24 1930.
$
911,000,000 +213,000,000 +463,000,000
—3,000,000
257,000.000 —50.000,000
—198,000.000
758,000.000 +50,000.000 +116,000,000
+4,000,000
79,000.000 +16,000,000
TOTAL RES'VE BANK CREDIT2,006,000,000 +32,000.000
+7,000.000
Monetary gold stock
4,465,000,000
1,760,000,000 —51,000,000
Treasury currency adjusted
+581.000,000
—124,000,000
—15,000,000
5,733,000,000 —15.5,000,000
Money in circulation
2,001,000,000 —167,00 ,000
Member bank reserve balances
Unexpended capital funds, non-mem—1,000.000
496,000.000
bers' deposits, &c
—719,000,000
—366,000,000
789,000.000
166.000.000
810.000,000 1,209,000,000
264.000,000
35,000,000
Due from banks
Due to banks
57,000,000
864,000,000
71,000,000
94,000,000
923,000,000 1,090,000,000
98,000,C00
70,000,000
Loans on secur. to brokers & dealers:
For own account
553,000,000
For account of out-of-town banks
51.000,000
For account of others
7,000,000
555,000,000 1,262,000,000
98,000.000 294,000,000
9,000,000 363,000,000
Borrowings from Federal Reserve Bank_
Total
On demand
On time
611,000,000
662,000.000 1,920,000.000
451,000,000
160,000,000
500.000,000 1,408,000.000
162,000,000 512,000.000
+88.000,000
Returns of Member Banks for New York and Chicago
Federal Reserve Districts—Brokers' Loans.
Beginning with the returns for June 29 1927, the Federal
Reserve Board also commenced to give out the figures of
the member banks in the New York Federal Reserve District
as well as those in the Chicago Reserve District, on 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 member banks
and that for the Chicago member banks for the current week,
Time deposits
Government deposits
Loans and investments—total
Chicago.
1.597.000.000 1,625,000,000 1,999.000,000
Loans—total
On securities
All other
Investments—total
U.S. Government securities
Other securities
Reserve with Federal Reserve Bank
Cash in vault
Net demand deposits
Time deposits
Government deposits
Due from banks
Due to banks
Borrowings from Federal Reserve Bank_
1,084,000,000 1,112,000,000 1,438.000.000
637,000,000
447,000,000
661,000,000
451,000,000
835,000,000
603.000,000
513,000.000
513,000,000
561,000,000
301,000,000
212,000,000
300,000.000
213,000,000
258,000,000
304,000,000
146,000.000
21,000,000
178,000,000
21,000,000
186,000,000
17,000,000
1.019,000,000 1,084,000,000 1,275,000,000
420,000.000 427,000,000 601,000,000
25,000.000
26,000,000
16,000,000
130,000,000
248,000,000
125.0000,00
283,000,000
21,000,000
8,000,000
150,000,000
354,000,000
DEC. 26 1931.]
FINANCIAL CHRONICLE
Complete Returns of the Member Banks of the Federal
Reserve System for the Preceding Week.
As explained above the statements for the New York and
Chicago member banks are now given out on Thursday,
simultaneously with the figures for the Reserve banks themselves, and covering the same week, instead of being held
until the following Monday, before which time the statistics
covering the entire body of reporting member banks in 101
cities cannot be got ready.
In the following will be found the comments of the Federal
Reserve Board respecting the returns of the entire body of
reporting member banks of the Federal Reserve System for
the week ended with the close of business on Dec. 16:
The Federal Reserve Board's condition statement of weekly reporting
member banks in leading cities on Dec. 16 shows increases for the week of
$299,000,000 in loans and investments, $539,000,000 in Government
deposits, $63,000,000 in net demand deposits and $76,000,000 in reserves
with Federal Reserve banks, and decreases of $69,000,000 in time deposits
and $36,000,000 in borrowings from Federal Reserve banks.
Loans on securities declined $15,000,000 at reporting banks in the
Chicago district and $19,000,000 at all reporting banks. "All other"
loans increased $25,000,000 in the New York district, and declined $6,000,000 at all reporting banks.
Holdings of United States Government securities, following the Dec. 15
issues by the Treasury, increased $183,000,000 at banks in the New York
district and $339,000,000 at all reporting member banks. Holdings of
other securities declined $9,000,000 in the New York district and $15,000,000 at all reporting banks.
Borrowings of weekly reporting member banks from Federal Reserve
banks aggregated $392,000,000 on Dec. 16, the principal changes for the
week being decreases of $26,000,000 in the San Francisco district, $21,000,000 in the New York district and $9,000,000 in the Chicago district, and
increases of $9,000,000 in the Philadelphia district, $7,000,000 in the
Cleveland district and $6,000,000 in the Boston district.
A summary of the principal assets and liabilities of weekly reporting
member banks, together with changes during the week and the year ending
Dee. 9 1931 follows:
Increase (+) or Decrease (—)
Since
Dec. 16 1931, Dec. 9 1931, Dec. 17 1930.
$
Loans and investments—total____20,963,000,000 +299,000,000 —2,121,000,000
Loans—total
On securities
All other
Investments—total
U. S. Government securities
Other securities
Reserves with F. R. banks
Cash in vault
Net demand deposits
Time deposits
Government deposits
Due from banks
Due to banks
Borrowings from F.It. banks
13,212,000.000
—25,000,000 —3,046,000.000
5,741,000,000
7,471,000,000
—19,000,000 —2,006,000,000
—6,000,000 —1,040,000,000
7,751,000,000
+324,000,000
4,336,000,000
3,415,000,000
+339,000,000 +1,122,000.000
—15.000,000 —197,000,000
1,667,000,000
259,000,000
12,168,000,000
6,004,000,000
544,000,000
+76,000,000
+11,000,000
+924,000,000
—187,000,000
—34.000,000
+63,000,000 —1.603,000,000
—69,000,000 —1,176,000,000
+539,000,000 +296,000,000
1,012,000,000
2,540,000,000
+84,000,000
+153,000,000
—469,000,000
—894,000,000
392,000,000
—36,000,000
+232,000,000
Hoover Holds "Postponement" Better Word Than
"Moratorium."
President Hoover does not like the word "moratorium"
as used in connection with the European debt situation,
according to a Washington dispatch Dec. 18 to the New York
"Times," which added:
He prefers the word "postponement," which, he thinks, more accurately
describes his proposal before Congress.
The President's preference for "postponement" was disclosed at the
White House breakfast conference this morning when he discussed the
debt situation with Speaker Garner, Representatatives Rainey and Snell,
the majority and minority party chiefs, and other House leaders.
Advisory Committee of Bank for International Settlements at Basle Concludes Germany Cannot Meet
Reparation Payments Upon Expiration of President
Hoover's Moratorium—Governments Urged to Take
Immediate Action to Deal with Crisis.
The special Advisory Committee appointed at the instance of the Bank for International Settlements to examine
into Germany's ability to pay reparations as provided in
the Young plan, has concluded that Germany will be unable
to meet the required payments with the expiration of the
year's moratorium proposed last June by President Hoover
and approved by the United States Congress this week. The
Advisory Committee of experts, whose study of Germany's
financial position was begun early this month at Basle,
presented its conclusions in a report signed at Basle on
Dec. 24. A cablegram from Basle on that date to the New
York "Journal of Commerce" said:
The experts, who were at odds first on the scope of their work, then on
almost every point they agreed to take up and finally on the language of
the report, managed to complete their draft before Christmas. Now
the report will be submitted to the debtor and creditor governments, upon
which will devolve the task of interpreting it.
The statement that Germany will not be able to resume payment of conditional reparations will leave to the governments the decision as to what
is to be done about these payments, according to the text of the summary
of the report. One possibility, that which was urged by representatives of
4233
Holland and Switzerland, neutral nations during the World War, would
be cancellation. Another possibility is extension of the moratorium.
Moratorium Extension Hinted.
By faint suggestion the report seems to point to the latter course. It is
stated that the financial position of Germany cannot be understood clearly
from the viewpoint either of booming prosperity or deep depression. While
this would seem to mean that final settlement should not be arranged at
the present time, it also attacks the settlement made under the Young plan
on a high prosperity basis, so that no clear conclusion follows necessarily
from the text of the summary, some of the representatives pointed out.
The summary says that the problem of Germany is the problem of the
whole world and that, if it is to be solved, the solution must be broad in
scope. This is interpreted by some as a suggestion to the governments
to negotiate to include the whole scheme of intergovernmental debts in
the program of their conversations.
Without offering a concrete solution, the report says that if a solution
Is not found rapidly, further difficulties edging on catastrophe will be
witnessed. The question of reparations, it is said, has become "to a great
extent the cause of the financial paralysis of the world."
Gold Suspension a Factor.
The report says that the abandonment of the gold standard by some
countries and the erecting of tariff barriers increased Germany's burden
in making payments. This statement was admitted only after considerable debate. This statement was insisted upon by the French, who
take the position that Germany's difficulties cannot be laid exclusively
to her reparations burden, but to other factors incident to the world-wide
depression, and that when these factors are eliminated payments will
be easier.
The following copyright account from its Basle correspondent Dec. 24 is from the New York "Herald Tribune":
The report of the Committee, headed by Alberto Beneduce, of Italy,
running to more than 8,000 words and agreed on unanimously, declares
that Germany is unable to pay her unconditional reparations annuity of
$157,000,000 in full, as well as completely unable to transfer her conditional
Young plan annuity of $268,000,000, and insists upon adjustment—which
actually means reduction—of the reparations and the World War debts
alike if the nations of the world are to emerge from their economic quagmire.
Nine-Page Summary Issued.
The complete text of the report cannot be made public until to-morrow,
or several days hence, owing to the necessity of correcting the French and
German translations, but the Advisory Committee has issued a ninepage summary giving all the important points stressed in the document.
The experts' conclusions, the report declares, are:
Transfers from one country to another "on a scale so large as to upset
the balance of payments can only accentuate the present chaos."
The release of a debtor country from a burden of payments which it
cannot bear "may merely have the effect of transferring that burden to
the creditor country, whicn in its character as a debtor it, in its turn,
may be unable to bear.'
In other words, the experts state that a Young plan moratorium for
Germany, while unavoidable, almost certainly will mean that Europe
cannot pay its war debts to the United States.
Third Conclusion Affects America.
The experts' third conclusion is of particular interest to America. It
reads:
The adjustment of all the reparations and war debts to the troubled
situation of the world—and this adjustment should take place without
delay if new disasters are to be avoided—is the only lasting step capable
of re-establishing confidence. It is the very condition of economic stability.
Hence, by inference, the Beneduce experts call for resettlement of all
the international debts, to which the American Congress has registered
such strong opposition.
In conclusion, the report refers to reparations as "a German problem"
and says:
"In the circumstances the German problem—which is largely responsible
for the growing financial paralysis of the world—calls for concerted action
which the governments alone can take. But the problem has assumed
world-wide range. We can recall no previous parallel in times of peace
to the dislocation that is taking place and may well involve profound
change in the economic relations of the nations to. one another. Action
is most urgently needed in a much wider field than that of Germany alone."
Conditional Annuity Opposed.
Here, again, the experts point a finger at simultaneous reduction of the
reparations and the war debts.
Outstanding in the report are this fact and the further one that the
Advisory Committee records its belief that Germany ought to have relief
from at least part of her unconditional reparations as well as her conditional annuity.
After definitely stating that Germany should be permitted to waive the
conditional annuity, the conclusion adds:
"The Committee would not consider that it had fully accomplished
its task if it did not draw the attention of the governments to the unprecedented gravity of the crisis, the magnitude of which undoubtedly
,
exceeds the 'relatively short depression' envisaged in the Young plan, tF.
meet which 'the measures of safeguard' contained therein were designed.
The Advisory Committee's spokesman admitted that this cloaked the
Committee's verdict that Germany cannot pay the unconditional reparations either.
Accordingly, the report virtually recommends a complete moratorium
on all reparation payments for Germany, despite the fact that the Committee's terms of reference prevented it from doing this openly.
The experts' report makes no reference to the term of years for which
Germany's moratorium should extend, whether two years, as foreseen in
the Young plan, or longer. It makes no direct reference to the private
debts contracted in Germany or to the relation of the foreign "frozen"
credits to reparations. It refers only indirectly to the effect of reparations
on accentuation of the world crisis, In the paragraph where the "German
problem" is cited as important.
No Margin for Tax Increase
On the positive side, however, the Committee declares that "the burden
of taxation in Germany has become so high that there is no margin for
further increases."
Also, in chapter two, the experts condemn tariff walls for their dangers
and obstructions to recovery by pointing out "the contradiction that
might arise between a system involving large annual payments by debtor
to creditor countries while at the same time putting obstacles in the way
of the free movement of goods."
'At the end of chapter two the report raises the question, Can Germany
recover sufficiently to pay reparations again? and answers that she should
be able to do so in the future.
"Every previous crisis," the report says, "has, in the end, been followed
by a period of stability and prosperity, and it would be unjustifiable to
4234
FINANCIAL CHRONTCLE
[VOL. 133.
judge its prospects for the future on the basis of an exceptional period of our issue of Dec. 19, page 4074. One amendment, proposed
depression . . . To assume that equilibrium will not be regained
in the House on Dec. 18, was offered as follows by Repreafter the present crisis would be a counsel of despair. This is as true of
Germany as of other countries. In past years she has built up an immense sentative Sanders of Texas:
Amend By Adding Sec. No 6 as follows:
and powerful economic equipment . . . Although it is impossible to
That for a period of two years from the date of the approval of this Act
fix a date, it Is nonetheless certain that this stability will ultimately be
all Federal Land Banks are authorized and directed subject to approval
restored."
of the Federal Farm Board (1) to withhold foreclosure of any mortgage
Future Payment Qualified.
The experts add succinctly: "With the assistance of the measures sug- securing a loan made by such bank if the borrower Is in default under the
gested in the conclusions of the Committee's report," that is, an immediate terms of the mortgage, and (2) to extend the time for the payment of any
and virtually complete moratorium for Germany, plus reduction of repara- installment due or to become due under the terms of any such mortgage for a
period of not to exceed two years.
tions and war debts as early as possible.
As regards the unexpected linking of the war debts to reparations by
Representative Crisp made the point of order "that the
the Beneduce Committee, Walter W. Stewart, American member of the amendment is not germane to the subject matter of the bill,"
Committee, to-night told the American correspondents that he regarded
this as "broadly within President Hoover's moratorium proposal." He and the point of order was sustained by the Chariman of the
added:"To settle any disputes. I have not had one word from Washington House.
since the Committee began its work, and I have not sent one word to
Representative Parsons of Illinois proposed the following
Washington since I came here."
Mr. Stewart, together with the other neutral delegates, expressed agree- amendment:
Sec. 6. This agreement shall be predicated on the reduction of military
able surprise that the report was as strong and outspoken as it proved to
be, and said it was much better than they had hoped for after the early and naval expenditures by the various governments in an amount equal to
twice
the amount of the payment postponed by the United States.
sessions of the experts.
Mr. Stewart's testimony of complete independence as an expert probably
As
to this Representative Crisp said:
records the American delegate as the only one of the seven whose nations
Mr. Chairman, I am constrained to make a point of order against the
are directly involved in the reparations subject who has not constantly amendment, in
that it is irrelevant and not germane to the bill before the
experienced pressure by orders and political dictation from his Govern- House for consideration.
ment during the work at Basle.
Four Main Divisions of Report.
The report falls into four main divisions. The introduction, analyzing
Germany's present situation after "a devastating summer," records that
Germany has suffered capital withdrawals in 1931 totaling 4.900,000.000
marks ($1,166,200,000, using the mark's par of 23.8c.), outlines the drain
of gold and foreign exchange from the Reichsbank of 1,700,000,000 marks
($384.800.000), reviews Germany's unemployment, interest rates and
railway crisis.
Chapter two describes the devastating effects of the world crisis, featured
by the fall in prices. Here the experts state that Germany. from 1925 to
1930, received investments of no less than 30,000,000,000 marks (87,140,000,000) of new capital, "of which 22.400.000,000 marks (.35,331.200.000)
represented investment by public authorities." It also scores Germanys'
excessive expenditure, which caused great increase in her debts. "Through
inflation," it says,"she had reduced her public debt by 1924 to a very small
amount: by 1931 it had grown to 24.000,000,000 marks ($5,712,000,000),
of which one-third was for public undertakings."
Here the experts echo the criticisms of S. Parker Gilbert. American.
former Agent-General for Reparation Payments under the Dawes plan.
regarding laxity between the Reich's budget system and those of the
Federal States and municipalities.
Optimistic Note Sounded.
Chapter two, nevertheless, ends on a note of optimism, that Germany
should be expected to recover if the proper cures, international as well as
national, are co-ordinated.
The third chapter summarizes the German emergency decrees, praises
Chancellor Heinrich Bruening's efforts to avoid bankruptcy and to balance
the budget.
The outspoken conclusions of chapter four have already been noted,
and the keynote that the unprecedented world situation is linked to Germany's collapse, and urgent action must be taken "In a much wider field
than that of Germany alone," the report ends by appealing to the governments to permit no delay in dealing with the crisis.
Dr. Carl Melchior, of Germany, Professor Charles Rist, of France, and
Signor Beneduce will strive to-morrow to get the French and German
translations of the text into full precision. The report then will either
be published from Basle or from the capitals of all the governments concerned. This may be to-morrow or at any time during the next week.
References to the Basle meeting appeared in our issues of
Nov. 28, page 3548; Dec. 12, page 3892, and Dec. 19,
page 4082.
W. W. Stewart, American Delegate on Committee of
Experts at Basle on References in Report to War
Debts.
Associated Press accounts from Basle Dec. 23 stated:
Commenting on the references to war debts in the experts' report to-day
on Germany. Walter W. Stewart, the American delegate, said that "in a
broad way" they were contained in the communique issued last October
by President Hoover and Premier Laval after their conversations in Washington.
Asked whether mention of war debts was compatible with the views
of the Washington Administration, Mr. Stewart said: "I think there is
the same difference between the language of the report and the Administration's views as there is between the rider on the moratorium passed
by Congress and the Administration's opinions."
United States Senate Adopts Resolution Previously
Accepted by House Authorizing Postponement of
Payments Due on War Debts—Resolution Signed
by President Hoover.
Congress on Dec. 22 completed action on the joint resolution authorizing the postponement of payments due on intergovernment war debts. On that date, the Senate, at a night
session, approved the resolution at 10 p. m. by a vote of
69 to 12. The House had previously, late Friday night
Dec. 18, agreed to the resolution by a vote of 318 to 100.
As we indicate elsewhere in this issue of our paper to-day
President Hoover signed the resolution on December 23.
Efforts in the House to amend the resolution as it came from
the Ways and Means Committee on Dec. 17,(the Committee
vote in favor of the resolution on that date was 21 to 4)
failed on Dec. 18 and the resolution, as agreed to in the
House and Senate is in the form in which it was given in
The point of order in this case was likewise sustained.
It is proper to say that the Chairman's ruling in each case
came after both Representatives Sanders and Parsons
indicated that they did not desire to be heard on the point
of order. After the resolution had been engrossed and
read a third time, a motion was made by Representative
Blanton to recommit it, with instructions to the Committee
to report back the resolution with all the provisions stricken
out except section 5. The motion to recommit was rejected
by a vote of 263 in opopsition to 21 in favor. Following this
the House took the resolution up for final passage, and agreed
to it, as indicated above, by a vote of 318 to 100.
The resolution was reported to the Senate on Dec. 19 by
Chairman Smoot of the Senate Finance Committee. From
Washington on that date a dispatch to the New York
"Herald-Tribune" said:
The moratorium resolution, which was hurried through the House last
night . . . regardless of Party lines, promptly struck a snag in the
Senate to-day. With Administration leaders determined to force it to
passage before the holiday recess if possible, the resolution is threatened
with a filubuster, led by Senator Johnson, which wil[ force it over until
after the holiday recess.
On Monday Dec. 21 the way was cleared for Congressional
sanction of the resolution before the Christmas recess
when the Senate adjourned at 5 o'clock that day, on motion
of Senator Johnson of California, leader of the opposition.
Washington advices Dec. 21 to the "Times" stating this
added:
Mr. Johnson said he saw no reason why a vote should not be reached
to-morrow [Dec. 221 or Wednesday [Dec. 231 at the latest. He will take
the floor to-morrow morning at 11 o'clock to speak for an hour, and It
is believed that the final ballot will be taken before midnight. Not more
than 20 votes are expected against the resolution, and the number may
not exceed 15.
While Mr. Johnson refused a request by Senator Smoot to consent to
vote before midnight to-morrow, indications are that the ballot will conic
by that time. Senators are restive and the House has already passed an
adjournment resolution, in which a majority of the Senate apparently
desires to concur.
Argue Over Length of Recess.
The program to keep the Senate in session night and day until the
moratorium resolution reached a vote was dropped this afternoon.
From the Washington account Dec. 22 we take the following regarding the Senate action:
Led by Senator Hiram Johnson, a small group of opponents battled for
11 hours to stave off the final vote, but they knew far in advance that
they would be overwhelmed, and so contented themselves with making
vigorous protests.
That Senator Johnson proposes to make the moratorium a Presidential
Issue appeared to have been intimated when he shouted that he was "ready
to stand before the American people upon a proposition such as that
advanced here to-day," but he later specifically denied that he had politics
In mind.
Senate Agrees to Recess.
The issue was never in doubt Sixty-eight Senators had already been
pledged to support the moratorium, which postpones Europe's war debts
to this country for a year, if Europe,in turn,foregoes collection of German
reparations for a year. Besides, the Senate was ready for a recess for
the Christmas holidays, to which it agreed a short time after the moratorium resolution was voted upon.
The resolution remained unchanged as sent to the Senate from the
House, retaining the clause declaring it would be Congressional policy to
Oppose any debt cancellation or reduction.
Efforts to make Congress say it also opposed "postponement" failed,
U) spite of a desperate attempt to force through such an amendment.
Likewise, Senator Johnson was beaten by a vote of 66 to 12 in an attempt
to preclude debt foregiveness unless a foreign debtor has foregone the
collection of unconditional as well as the other reparations annuities.
This amendment was directed at France, who, Senator Johnson to-day
sharply charged, forced President Hoover to revise his original moratorium
plans, because the French Republic successfully insisted that Germany
must continue paying unconditional annuities.
Other Amendments Beaten.
Other amendments defeated included these:
By Senator Howell, Republican.—To prevent a moratorium agreement
with any country unless there is a revision of the Versailles treaty, including
return of the former German colonies; beaten, 63 to 16.
FINANCIAL CHRONICLE
DEC. 26 1931.]
By Senator Howell.—Another amendment of the same character, but
relating to future moratoriums; beaten, 63 to 16.
By Senator Gore, Democrat.—To postpone only 80% of the debts owed
to the United States and apply the remaining 20% to unemployment
relief; beaten by a viva-voce vote.
By Senator Nye, Republican.—To authorize a one-year moratorium
from July 1 1931 on farmers' debts to the Federal Land Banks; beaten,
60 to 15.
By Senator Shipstead, Farmer-Labor, of Minnesota.—To declare it to
be the sense of Congress that in "the light of documentary evidence" the
United States should take steps to remove its further acquiescence in the
theory of German was gullt; beaten, 64 to 15.
Line-up on the Amendments.
The dozen Senators supporting the Johnson amendment regarding the
unconditional reparations annuities were: Blaine, Brookhart, Cutting,
Frazier, Johnson, Norbeck, Norris, Nye and Scholl, Republicans; and
Bulow, Lewis and McKellar, Democrats.
Those voting for the first Howell amendment were: Blaine, Brookhart,
Cutting, Frazer, Johnson, La Follette, Norbeck, Norris, Nye and Schell,
Republicans; Bulow, Copeland, Dill, Lewis. Wagner and Wheeler, Democrats. On the second Howell amendment, the line-up was identical except
that Senator Lewis voted no and Senator Costigan voted yes.
The Nye amendment to declare a farmers' moratorium was backed by
Blaine, Brookhart, Frazier, Johnson, Norbeck, Norris, Nye and Scholl.
Republicans; Black, Bulow, Costigan, Harris, McGill, McKellar and
Thomas of Oklahoma, Democrats.
Supporters of the Shipstead amendment were: Blaine, Brookhart,Frazier,
Johnson, La Follette, Norris, Nye and Schell, Republicans; and Bulow and
Wheeler, Democrats. This amendment read:
"It is hereby declared to be the sense of the Congress of the United States,
in the light of documentary evidence accumulating since 1919, that the
government of the United States ought to take such steps as will make it
clear that it no longer will permit itself to be regarded even by implication
under the terms of the Treaty of Berlin of June 1921, as acquiescing in the
formal charge made in Article 231 of the Treaty of Versailles to the effect
that Germany
.
alone was responsible for the war terminated by those
treaties."
Opponents Are Unrelenting.
Opponents of the moratorium measure continued their attack from the
time the Senate met at 11 a. m. Senator Johnson of California in a two-hour
speech denounced the "International bankers" and President Hoover, with
whom the Californian has clashed at various times.
Shortridge Defends Measure.
Administration leaders generally remained silent, allowing the opposition
to spend its energy, and fearful that speeches favoring the moratorium
would only lend fuel to the flames. Senator Shortridge, Republican colleague of Senator Johnson, however, defended the plan.
Mr. Shortridge appealed for prompt ratification of the agreement, contending that it lad nothing to do with the question of whether debts should
be reduced, readjusted or canceled. He said the moratorium was temporary
and only permitted portponement ofthis year's payments to a later period.
McKellar Attacks Moratorium.
Senator McKellar, another bitter enemy of the moratorium, attacked
President Hoover as "probably the greatest gives-away of other people's
money in the world, He said that the President used "other people's
money" to aid Belgium, then persuaded Congress to furnish $100,000,000
for European relief, but now gave no money to "suffering Americans,"
"When he looks at Europe it's a different matter," Mr. McKellar declared, and added that although it is proposed to "take money from the
treasury for Europe, no money is there."
"No other President will get a majority of the Senate or House by Western Union telegrams," he said, alluding to the messages which the President sent to members of Congress. "If that system is done away with,
the moratorium will have done some good."
When Senator McKellar chided those who had "signed on the dotted
line," and now found, he said, that the moratorium was not the same
which the President originally proposed, Senator Barkley, Democrat of
Kentucky, retorted:
"I would rather have the people of my State say I made a gorgeous mistake than to have them say I did not keep my word to the Presideht of
the United States."
The Vote in Detail.
The roll-call on the resolution was as follows:
Austin
Barbour
Bingham
Blaine
Borah
Brookhart
Capper
Carey
Cutting
Dale
FOR RATIFICATION-69.
Republicans-36.
Jones
Davis
Dickinson
Kean
La Follette
Tess
Glenn
McNary
Moses
Goldsborough
Patterson
Hale
Hastings
Reed
Hatfield
Robinson (Ind.)
Shortridge
Hebert
Smoot
Steiwer
Thomas
(Idaho)
Townsend
Vandenberg
Walcott
Watson
White
4235
Debt payments, including principal and interest, which this country
would ordinarily receive in the year concerned, but which she now foregoes, are:
Total.
Total,
Nation-Nation—
8287,556 Latvia
$250.653
Austria
7,950,000 Lithuania
224.545
Belgium
7,486,835
Czechoslovakia
3.000,000 Poland
800,000
600.372 Rumania
Estonia
312,295 Jugoslavia
250,000
Finland
50,000.000
France
Total
159,520,000
$246.566.803
Great Britain
1.109.080 Germany, army costs-6.000.000
Greece
69,342
Hungary
Total
14,706,125
$252,568,803
Italy
The following is the resolution as enacted by Congress:
H. J. Res. 147.
To authorize the postponement of amounts payable to the United
States from foreign Governments during the fiscal year 1932, and their
repayment over a 10-year period beginning July 1 1933.
Resolved by the Senate and House of Representatives of the United States
in Congress assembled, That in the case of each of the following countries:
Austria, Belgium, Czechoslovakia, Estonia, Finland, France, Germany,
Great Britain, Greece, Hungary, Italy, Latvia, Lithuania, Poland, Rumania and Jugoslavia, the Secretary of Treasury, with the approval of
the President, is authorized to make, on behalf of the United States,
an agreement with the Government of such country to postpone the
payment of any amount payable during the fiscal year beginning July 1
1931, by such country to the United States in respect of its bonded indebtedness to the United States, except that in the case of Germany, the
agreement shall relate only to amounts payable by Germany to the United
States during such fiscal year in respect of the costs of the Army of
Occupation.
Sec. 2. Each such agreement on behalf of the United States shall
provide for the payment of the postponed amounts, with interest at the
rate of 4% per annum, begining July 1 1933, in 10 equal annuities, the
first to be paid during the fiscal year beginning July 1 1933, and one during
each of the nine fiscal years following, each annuity to be payable in one
or more installments.
Sec. 3. No such agreement shall be made with the Government of
any country unless it appears to the satisfaction of the President that
such Government has made, or has given satisfactory assurances of willingness and readiness to make, with the Government of each of the other
countries indebted to such country in respect of war relief, or reparations
debts, an agreement in respect of such debt substantially similar to the
agreement authorized by this joint resolution to be made with the Government of such creditor country on behalf of the United States.
Sec. 4. Each agreement authorized by this joint resolution shall be
made so that payments of annuities under such agreement shall, unless
otherwise provided in the agreement (1) be in accordance with the provisions contained in the agreement made with the Government of such
country under which the payment to be postponed is payable, and (2)
be subject to the same terms and conditions as payments under such
original agreement.
Sec. 5. It is hereby expressly declared to be against the policy of Congress that any of the indebtedness of foreign countries to the United States
should be in any manner cancelled or reduced, and nothing in this joint
resolution shall be construed as indicating a contrary policy, or as implying that favorable consideration will be given at any time to a change
In the policy hereby declared.
President Hoover Signs Resolution Passed by Congress
Authorizing the Postponement of Payments on
War Debts.
On Dec. 23, President Hoover signed the resolution,
passed by Congress, authorizing the postponement of
amounts payable to the United States from foreign governments during the fiscal year 1932. The action on the resolution by the House (on Dec. 18) and by the Senate (on Dec.
22) is indicated in another item in this issue of our paper.
In its Washington dispatch Dec. 23 the New York "Times"
said:
The President received the resolution at 11 o'clock this morning, but
it was after 4 in the afternoon when he affixed his signature to make it
law. There was no ceremony, as is sometimes the case when measures
of major importance are signed. Eugene Meyer, Governor of the Federal
Reserve System, was the only person persent. The pen used was presented
to Mr. Meyer.
With the signing of the bill, President Hoover issued the
following statement:
I have signed the act authorizing the foreign debt postponement for
one year. I am gratified at the support it received in the Congress as
indicated by the approval (including those absent, yet who expressed
their views) of 79 Senators as against 15 opposed, and the approval of 317
members of the House of Representatives as against 100 opposed. iThe
Congressional Record gives the House vote as 318 to 100. Ed.] It Is further
gratifying that both political parties strongly supported this proposal.
The suggestion of our Government for the year's postponement of intergovernmental debts among all principal nations, of which ours is only a
part, averted a catastrophe, the effects of which would have reached to
AGAINST RATIFICATION-12.
the United States and would have caused the American people a loss of
Republicans-6.
many times the amount involved. No part of the debt owing to us has been
Frazier
Norris
Nye
Norbeck
cancelled or reduced; the postponed amounts are repayable over a period
Johnson
Schell
of
about 10 years with interest at 4%.
Democrats-6.
Bulow
Dill
Connally
McKellar
In saving the collapse of Germany by the year's postponement, the
Caraway
Thomas (Okla.) American people have done something greater than the dollars and cents
Pairs.
gained from the maintenance of our agricultural markets, the prevention
For Ratification—Robinson (Ark.), Swanson and Neely.
of panic and unlimited losses. They have contributed to maintain courage
Against Ratification—Howell, Gore and Shipstead.
Absent and Unpaired.
and hope in the German nation,to give opportunity for the other European
Couzens, Keyes, Logan, Metcalf_, Oddie and Waterman, Republicans, countries to work out their problems.
and Long, Pittman and Stephens. Democrats.
Provisions of the Resolution.
The moratorium resolution authorizes Secretary Mellon to make agree- Secretary of State Stimson's Statement Upholding
ments with fifteen nations for the debt postponements. Yugoslavia is
Authority of President Hoover's Action in Proincluded, but she has entered into a separate arrangement, as she desires
Postponement of Payments of Inter-governposing
to retain certain payments due her from Austria.
ment Debts.
Each nation permitted to postpone its debt payment, must defer reparations collections from Germany, except that France still receives the "nonOn Dec. 23, the following statement was issued by Secrepoetponables." The United States agrees not to collect the sums due
tary of State Stimson relative to the action of President
from Germany for costs of the American Army of Occupation.
Ashurst
Bailey
Bankhead
Barkley
Black
Bretton
Broussard
Bulkley
Byrnes
Coolidge
Copeland
Costigan
Fletcher
George
Glass
Harris
Harrison
Democrats-38.
Hawes
Hayden
Hull
Hendrick
King
Lewis
McGill
Morrison
Sheppard
Smith
Trammell
Tydings
Wagner
Walsh (Mass.)
Walsh (Mont.)
Wheeler
4236
FINANCIAL CHRONICLE
Hoover in the matter of the postponement for one year of
inter-government debts:
[Vol. 133.
indebtedness was created make it necessary that the postponed payments be
subject to uniform terms and conditions of repayment for all creditors.
Under the agreements now ex sting, the trustees of the League of Nations'
reconstruction loan have the right to object in any year to the payments
being made during that year.
Depending upon the action to be taken by all the creditor governments,
it may be necessary to continue this right of postponement. In the case
of Greece, part of its indebtedness is serviced through the International
Financial Commission and it Is advisable, if possible, to continue this
arrangement with respect to the postponed payments on account of this
Indebtedness.
The provisions of Section 4 are necessarily broad in order to cover the
cases of Austria and Greece, but the committee has the pledge of the
Treasury that exceptions to the terms of existing agreements will be confined to the above-mentioned points.
The report concludes by quoting President Hoover's statement of June
20 announcing the debt moratorium.
"I have been surprised that the President's power to suggest and negotiate
a suspension of inter-governmental debts should have been questioned.
"Under our system of government, the President is vested with the duty
of initiating all International treaties, understandings or agreements. He
holds in his hands the conduct of our relations with other countries. Such
contracts as he negotiates are subject to confirmation by other branches
of the Government: in the case of treaties, to the consent and approval
of the Senate: in the case of contracts affecting the national Treasury Or
property, to the approval of Congress.
"From the very beginning last June of President Hoover's suggestion
of an inter-governmental suspension of debts, he notified the world that
It must be subject to approval by the Congress of the United States, and
this restriction and reservation has been reiterated throughout the nbgotiations.
"His authority to do what he has done in regard to the year of debt
The above is taken from the New York "Times" of Dec.
postponement is no less or different than his authority exercised every
day in the negotiation of treaties and international conventions. The 18, which also had
the following to say regarding the minonly difference of method used by President Hoover in this case from that
which the President of the United States normally follows, was that in ority report:
The minority report on the moratorium ratification resolution, filed by
this case, before even initiating the negotiations, he consulted with the
leaders of Congress and obtained their approval of what he was doing. Representatives Sanders, Eslick and Vinson, complained chiefly of lack of
This approval has now been formally and abundantly given by the vote time to consider the proposal, and criticized President Hoover's course.
The minority emphasized the view that the President overstepped his
last evening."
constitutional prerogatives, taking unto himself a matter which should
be "determined by Congress in session, with proper communications
Report of House Ways and Means Committee on Reso- thereon
by the President of the United States together with full facts of
lution Providing for Postponement of Payment on existing circumstances."
Complaint
was also made that the "documentary" evidence, referred to
War Debts.
by administration, witnesses before the committee, had not been given
Below we give in past the majority report of the House to the House and could not be in sufficient
time for clear judgment on the
Ways and Means Committee recommending the passage resolution.
They declared that only "generalities" regarding the German financial
of the resolution providing for the approval of President situation were laid before
the committee.
Hoover's proposal for the postponement of payments on
"No evidence was adduced before us," the report went on, "that any
of
the
foreign nations affected were financially unable and unwilling to
intergovernment debts for one year; the report, together
make these payments. On the other hand, the nations affected by this
with a minority report was presented to the House on Dec. 17; resolution
expended approximately $2,000,000,000 for armaments and war
the resolution (to which reference was made in our issue of preparations within the last fiscal year."
A
Dee. 19, page 4074) was passed by the House on Dec. 18, of 16table from the New fork "Times" of August 2 showing the expenditure
European nations for armaments in the last fiscal year was inserted.
and by the Senate on Dec. 22. In part the majority report
The minority endorsed the argument of those who contend that the
present moratorium of one year is "a forerunner and a curtain-riaser to
follows:
debt cancellation or another moratorium."
Adverse Economic Developments in Europe.
The minority asserted that the original Hoover proposal of June made
The testimony given before the Committee indicated that adverse
economic developments in Europe had, by the beginning of 1931, placed no mention of funding the suspended payments over a period of ten years.
the national economies of certain countries, particularly of Central Europe as provided in the Collier resolution.
Attention was called to the growing deficit in the treasury. The report
under severe strain. By June, it was evident that events were rapidly
shaping toward major crisis, the repercussions of which would seriously said that to forego the collection of the $252,000,000. due from foreign
nations
this year would amount to an additional tax of $2 on every man,
affect economic conditions throughout the world and which could not
woman and child in the United States. It added:
but react adversely upon conditions in this country.
"We
commend the equivalent maxim known to every lawyer—be just
It had become apparent early in the year that economic conditions in
Germany were deteriorating at a fairly rapid pace. In Austria, the dis- to the American people before we are generous to the peoples of Europe."
closure of the unsound condition of the country's largest credit institution
Precipitated a crisis in that country in the latter part of May which necessitated the extending of outside financial assistance, and became so serious Charles G. Dawes Named by President Hoover as
as to accentuate increasing apprehension regarding the economic and
Chairman of American Delegates to Geneva Conbudgetary situation in Germany.
ference on Disarmament to be Held in February—
It became evident by the first of June that a slow run had begun upon
Hugh S. Gibson and Miss Mary E. Woolley of Mount
German banks, In fact upon the central institution, the Reichsbank.
Subsequently this run assumed major proportions.
Holyoke College Also Named as American Delegates
Between the end of May and June 20, the outflow of funds from Gerto Conference.
many resulted in a reduction of 1,000,000,000 reichsmarks, or approximately 3250.000.000. in the Reichsbank holdings of gold and foreign
On Dee, 22 President Hoover announced that he had
exchange. This represented approximately two-fifths of the bank's total
designated Charles G. Dawes to head the American delega-
reserves.
On Friday, June 19. and Saturday,. June 20. the withdrawals were so
heavy that the reserves of the Reichsbank reached the legal minimum
and it was obvious that unless some action was taken at once to change
public sentiment and check the withdrawal of funds from Germany, the
Reichsbank would be obliged to suspend its reserve requirements and in
all probability go off the gold basis, with consequences most serious, not
only to Germany but throughout the world.
To meet the impending crisis and to avoid the inevitable effects of the
impending catastrophe upon conditions in the United States, as well as
Europe, the President proposed, subject to confirmation by Congress, the
postponement during one year from July 1 1931. to June 30 1932, of all
payments on intergovernmental debts, reparations and relief debts, both
principal and interest.
This proposal was made in the belief, which subsequent events seemed to
justify, that timely action should contribute to relieve the pressure of adverse forces operating in foreign countries and should assist in the re-establishment of confidence.
The announcement of the proposal on June 20 resulted in the immediate
termination of withdrawals of funds from Germany and increased prices
of commodities and securities in world markets. Although these benefits
were not entirely retained the impending catastrophe was averted.
The resolution under considertion authorizes the Secretary of the Treasury
with the approval of the President, to conclude agreements with our debtor
governments which have accepted the President's proposal of June 20 1931,
and have given satisfactory assurances of their willingness and readiness to
make with each of their debtor governments an agreement on substantially
similar terms as the agreements proposed to be made with our debtors.
Section 2 of the resolution authorized the amounts postponed to be
repaid over a period of ten years beginning July 11933, with interest at the
rate of4% per annum.
In July, 1931. the principal creditor governments met in London for the
purpose of putting into effect the President's proposal, at which conference
It was agreed that the amounts postponed should be repaid on the same conditions as specified in the resolution, except that the interest rate was 3%.
In view of the fact that conditions had changed since that meeting in July
and that the obligations of the United States Government are now selling
on the market at a rate to yield about4%,it is felt that a 4% rate is Justified.
Conditions Under Which Payments Would Be Made.
The payments to be made under this resolution should, so far as possible,
be subject to the same terms and conditions as the payments to be made
under the original debt-funding agreements, except that there is to be no
right of further postponement in respect of the payments in question and
except that payments should be made in cash.
There may be a possible exception to the right of postponement in the
case of Austria. It will be recalled that Austria has relief debts owing to
nine different creditor governments. The conditions under which this
tion to the Geneva conference on disarmament. The appointment of Mr. Dawes (U. S. Ambassador to Great
Britain) to the Geneva conference, was made known as
follows by President Hoover:
"General Dawes will head the American delegation to the Geneva conference. Mr. Fletcher, I am sorry to say, finds that be wlli not be able
to accept membership on the Commission. The whole question of disarmament is and has been of profound interest to the women of the United
States. They have shown great interest in it for many years. I have
determined to appoint a prominent woman as a member of the delegation.
I am now conferring with a lady of high fitness for the position as to her
acceptance of that important mission."
The name of the woman delegate to the conference was
announced by the President on Dec. 23. She is Miss Mary
E. Woolley, President of Mount Holyoke (Mass.) College
since 1900. It is stated that Senator Claude A. Swanson
of Virginia, ranking Democratic member of the Senate Foreign Relations Committee, will also be a member of the
American delegation to the conference. It was expected
that Henry P. Fletcher (whose resignation as Chairman of
the U. S. Tariff Commission, was noted in our issue of
Nov. 21, page 3365), would also attend the Geneva conference, but, as stated by President Hoover, Mr. Fletcher
was unable to accept the appointment.
On Dec. 24 announcement was made that President
Hoover has selected in addition the three indicated above,
Hugh S. Gibson, Ambassador to Belgium, as a delegate to
the Geneva Arms Conference. Associated Press advices
from Washington reporting the selection of Ambassador
Gibson said:
Along with the word of the selection of Mr. Gibson to-day it became
known that Ambassador Dawes has been called here from his post at
London for a conference with the President before the Geneva meeting.
Mr. Dawes will arrive in Washington about Jan. 10 and will sail back
to Europe with the other members of the delegation and its advisors on
the steamship President Harding Jan. 20.
Mr. Gibson has already been in the United States for conferences and
will join the other delegates in Europe shortly before the Geneva 908.510118
begin Feb. 2.
DEC. 26
1931.]
FINANCIAL CHRONICLE
The woman delegate is sixty-eight, but does not look it. Her hair is
brown, her step firm. quick. For thirty years she has been directing the
school at South Hadley, Mass., even while carrying on her aggressive
work on national and international affairs.
In appointing her, President Hoover responded to a highly organized
and insistent demand from women.
4237
debts. The following account of what they had to say is
from the "United States Daily" of Dec. 20:
Ambassador Dawes, it is stated, will sail for the United
States Dec. 30.
British Note Asks French Debt Moderation—Says Part
of Reparations Has Been Loans from England and
United States—New Beginning Demanded.
A cablegram from Paris Dec. 18 is taken as follows from
the New York "Times":
Further revelation of the terms of the British Government's memorandum to France on reparations has served to indicate that the British
Government, supported, it is believed, by Washington, intends at the
forthcoming governmental conference not only to seek a final liquidation
of the past but to try to make possible the beginning of a new and better
financial order throughout Europe and the world.
This memorandum, it is believed, is couched in very different terms
from past communications setting forth British views on debts and reparations. It is to some French ears reminiscent of the language of Viscount
Snowden of Ickornshaw at The Hague conference.
The British Government has also backed it up by sending to Paris
Sir Frederick Leith-Ross of the British Treasury to explain in detail the
British view and to discuss with the French technical experts the procedure which Britain desires to be followed.
Those who have read the British memorandum have been left with the
Impression that the abandonment of the gold standard by Britain has
given her far greater freedom of speech and action than she has had for
several years.
Gives Warning to France.
At least the memorandum sets forth that what France has been receiving in reparations from Germany in the past 10 years has been nothing
other than money lent to Germany by Britain and the United States, plus
the small margin of profit Germany was able to make out of her export
trade as long as the British markets were unprotected.
If Germany's credit is destroyed and her markets abroad closed, then
the conclusion drawn by the British Cabinet Is that France will have to
wait a very long time before she will ever collect any more reparations.
The memorandum takes as a point of departure that what is essential
to obtain is that Germany's reparations payments must be so adjusted
that her financial stability will be in no way jeopardized. It urges that
her creditors must show wisdom and act on the same principles as if the
matter were a normal business affair.
There is some insistence that if France and every other creditor comes
forward with a series of minimum demands before Germany's capacity
of payment is determined, then the whole position is falsified from the start.
The British also protest vigorously against the French contention that
there must be a margin for the payment of war debts over and above the
payment of reparations. If that is admitted, it is argued, it will mean
Germany must bear the whole burden and France herself would make no
sacrifice.
Under date of Dec. 20, a Paris cablegram to the New
York "Journal of Commerce" stated:
The oonference between the British and French Governments should
result in complete collaboration in meeting the refusal of the American
Congress to take any real action on the war debts.
An official contrnunique stated that the conversations offered an opportunity for a "most amicable exchange of views on the financial situation,
particularly on the problems coming before the future conferences of the
Governments."
The future conferences referred to are those which must be held under
the Young plan on reparations debts following the issuance of recommendations by the experts now meeting in Basle.
Foreign Obligations.
Asked his opinion as to whether foreign debts should be scaled down,
Mr. Mitchell said that he was willing to leave that matter in the "place
where it belongs," namely with Congress. He said that he did not believe
in cancellation as it was generally spoken of, but that if any scaling were
to be done, it should be left with Congress.
Mr. Lamont said that the total of long-term foreign bonds issued since
the World War by J. P. Morgan & Co. was $1,807,578,000, of which $438,280,000 had been retired. Mr. Mitchell stated the total foreign loans of
the National City Co., affiliate of the National City Bank, during the same
period, was $1,071,955,000, of which $222,866,000 had been retired.
Mr. Lamont, testifying before the Committee in connection with the
Johnson resolution (S. Res. 19) for an investigation of the sale of foreign
securities in this country, made this statement, he said, because there "is a
great deal of unwarranted and undue fear in the public mind about the
soundness of large financial institutions and something should be said to
relieve this pressure on their minds."
Charges Exaggerations.
He assured the Committee that there is "a great deal of misunderstanding
and exaggeration as to the holdings of American banks in these short-term
credits. A very wrong impression has been created. The American banks
generally over the country have had German bank correspondents for years,
granting commercial and other credits for financing of exports. Many
have been so engaged and it is necessary to export trade."
"Yet the public has been inflamed with the idea of large figures," he
continued. "They have had the New York banks loaded with these short.
termed credits. Of course, that is perfectly fantastic." The largest amount
held by any one bank is $70,000,000 in one New York institution. He
stated that he could not give the total amount outstanding.
Lists Foreign Loans.
Mr. Lamont began his testimony by a listing of long-term loans made to
foreign countries since the armistice. The amount loaned to the Argentine
Government in various amounts from June 2 1925 to April 28 1927 totaled
4 to 4%, and with
/
$159,800,000, he stated, with a gross spread of from 33
no managing commission received by J. P. Morgan & Co.
Two loans to Australia, July 16 1926 and May 8 1928 totaled $165,000,000,
4 to 3%, and with a managing commission of
/
with a spread of from 23
one-eighth of 1%, he said, while two loans to Austria, June 11 1923 and
July 15 1930, of $25,000,000 each, totaled $50,000,000, with no managing
commission on the first and one-fifth of 1% on the second.
Compensation was declined in the case of the first loan to Austria in
that the loan was considered in the light of a public duty, Austria being
on the verge of collapse, Mr. Lamont explained. The amount outstanding
now is below $18,000,000.
Action by State Department.
The- total of six loans to Belgium was $260,000, with a spread of 6%
in the early loans to 4% in the last loan, he said, no managing commission
being received on the first two loans, three-twentieths per cent., on the
third, .225% on the fourth, and one-fifth per cent. on the last two. One
loan was made to Canada, April 25 1922, of $105,848,000, with a gross
4%.
/
spread of 23
Senator Walsh (Dem.), of Massachusetts, inquiried whether any of the
contracts for loans had been approved by the State Department. Mr.
Lomant explained that in 1920 President Harding had requested large
bankers to let the State Department have cognizance of foreign bond issues
been conand that it be extended the right to object. "That practice has
tinued, though in recent years not so much has been made on it," he said.
"Does the State Department issue a confirmatory letter approving the
issues?" Senator Couze.ns (Rep.), of Michigan, inquired.
Policies Regarding Loans.
"They don't do it in an affirmative form, Senator," responded Mr. Lamont.
"They do it in a negative form." He added that the State Department
arises,
asked if it cares to interpose an objection and responds, if none
We also quote the following from London Dec. 20 to the is
that
that it wishes to interpose no objection. "We canstrue this to mean
as to
same paper:
there is no point of high politics involved of such great importance
loans."
Strong pressure has been brought by France over the week-end on the lead the Government to say that it is an unwise policy to make the
Senator
British Government to present a united front to the United States on the
''If there is an objection, the loan is not floated, is it?" asked
question of allied debt payments to America.
Barkley (Dem.), of Kentucky. "Certainly not," replied Mr. Lamont.
The French position is that the attitude shown by the American Congress
Senator Reed (Rep,), of Pennsylvania, questioned if the absence of an
illustrates the utter futility of seeking voluntary cancellation by the United objection was considered an approval of the security of a loan.
States.
"In no sense have we given such construction to it," said the witness.
The French point of view is not entirely shared by the British. Over "It is only a question of whether high politics are involved."
debt
the
on
question
against
America
unite
to
hangs the dispute
any effort
"They have not undertaken to pass on the security of loans?" Senator Reed
between France and England on the priority of commercial or political asked. "Certainly not," replied Mr. Lamont.
debts of Germany. France still refuses to concede the priority of comResponding to questions by Senator Gore (Dem.), of Oklahoma, as to the
mercial over political credits and this discord overshadows everything else.
public taking the loss on declines in securities, Mr. Lament said that the
private investor has been obliged to witness severe declines in Government
bonds, foreign bonds, railroad and other bonds, and that it is "the great
have chiefly fallen rather than
Testimony of Thomas W. Lamont of J. P. Morgan & Co. investment public on which these declines
banks."
the
and Charles E. Mitchell of National City Bank of
Dawes
The loans were made to Germany, one Oct. 14 1924, under the
New York Regarding German and Other Foreign Plan at 7%, and one in 1980 under the Young Plan at 536%, Mr. Lamont
$98,250,000,
Loans—Commissions Paid, &c.—Mr. Mitchell Fore- continued. The first loan was $110,000,000 and the second
and the total of the two has been reduced to $177,000,000, he said. The
casts Debt Revision.
spread on the first was 5% and the second 4%.
Both Thomas W. Lamont, of J. P. Morgan & Co., and
Senator Bingham asked why American bankers were so willing to lend to
financial collapse. Mr. Lamont explained that the bonds
Charles E. Mitchell, Chairman of the Board of the National Germany after her
constituted an unconditional obligation of the German Government and are
City Bank of New York City, presented to the Senate Finance payable in American gold dollars. Germany, he said, was put on a gold basis
Committee, on Dec. 18, their views on foreign financing, the and there was no reason, and is none to-day, to question the good faith of
German Government and people to meet their obligations. He pointed
hearing on the resolution calling for an investigation into the
out that payments were based on special revenues.
the sale of foreign securities. A brief reference to the testiIn regard to short-tents loan credits in Germany, Mr. Lamont said that
mony of Messrs. Lamont and Mitchell appeared in our issue the aggregate of these credits in America, Great Britain, France and other
countries "has been a cumbersome amount."
of Dec. 19, page 4079. As we indicated therein, Mr. Lamont,
denying reports that American banks were "loaded up" with
foreign securities, took occasion to declare that German
short-term loans are not a danger to American banks. Mr.
Mitchell declared the amount of foreign loans held by the
New York banks was in no case sufficient to influence their
judgment in regard to cancellation of the intergovernmental
Loans Made to Chile.
Chile received a loan of $24,000,000 Feb. 15 1921, all of which has bees
relieved, Mr. Lamont told the Committee. These were 8% bonds with a
gross spread of 5% and non-managing commission, he said. Two issues were
made to Cuba totaling $59,000,000 on Jan. 15 1928 and July 1 1927, with
2.48% commission on the first and 122/1,000 on the second.
Three issues to France aggregated $300,000,000, each of $100,000,000,
the first on Sept. 8 1920, the second May 28 1921, and the third Nov 24
4238
FINANCIAL CHRONICLE
1924, Mr. Lamont testified. The first has been retired, the second is
below $61,000,000, and the third below $71,000,000. On these issues the
gross spread was 5 to 6%, with no commission on the first two and /
1
2% on
the last. The first issue was at 8%, the second at 71
/
2%, and the
third at 7%.
Senator Johnson (Rep.), of California, asked if any of the French issues
was bought outright by J. P. Morgan & Co. Mr. Lamont explained that
all of them had been bought outright by the company and its associates,
adding that four houses had been represented in each loan. He said, in
response to further questioning by Senator Johnson, that the bonds were
resyndicated at 1% up, one-half of 1% up and three-quarters of 1% up for
the three issues, and that then they went to a third and final distributing
syndicate, which carried the largest amount of the spread because of the
larger part of the work, 4%, 4% and 3% for the three issues.
The prices originally paid, he said, were 94, 90 and 89, respecaively,
and their ultimate sale was at 100, 95 and 94.
Senator Bingham (Rep.), of Connecticut, asked why less profit was represented in the later issues.
"We call it spread because the greater part of it goes in the expense of
distribution," Mr. Lamont responded. He said the reason it was larger in
the first four years was that those were years of reconstruction in Europe
and the public confidence had not been established. He stated that the
contracts entered into specify the amount of the spread.
"Has anything been done on the part of your syndicate in the way of
coercion to take these issues?" questioned Senator Harrison (Dem.), of
Mississippi. "Not the slightest," replied Mr. Lamont.
Mr. Lamont declared further that the banks of the country are not loaded
up with foreign bonds to the extent that the public thinks. "They think
the bankers are loaded up with long-term bonds," he said. "That is the
menacing point in the situation."
Italian and Japanese Loans.
Mr. Lamont said that loans to Italy include $100,000,000 in 1925,
$12,000,000 to a corporation owned by the Government in 1927, and
$30,000,000 to the City of Rome in 1927.
Other loans were listed by Mr. Lamont as follows:
/
2% interest with a spread of 5%, made folJapan, $150,000,000 at 61
lowing the earthquake; $71,000,000 with a 4% spread in 1930; three
issues guaranteed by Japan, city of Yokohama, $20,000,000; city of
Tokyo, $20,000,000 and electric power company in Formosa, $22,800,000
in 1926, 1927 and 1931, respecaively. Switzerland, $20,000,000 in 1923,
now paid off, and $30,000,000 in 1924. This, he said, completed the list
of loans.
Domestic Credit.
"Has the volume of foreign credits conflicted with or impaired the ability
of the domestic corporations, particularly the smaller ones, to secure credit?"
Senator La Follette (Rep.), of Wisconsin, asked. "Unquestionably not,"
replied Mr. Lamont. He said he believed there was a connection between
the foreign loans and the expansion of American export trade.
Mr. Lamont said that J. P. Morgan & Co. had given Great Britain the
right to call on it at any time within a two-year period for $100,000,000,
and that it had been paid 114%. He stated that the company has no
share in German short-term credit, and explained that it is not the financial
agent of Italy.
"While I regard the question of foreign bond issues as undoubtedly an
important factor in the whole situation, I do not deem it of equal importance to the domestic situation," Mr. Lamont said: "If we can address
ourselves to certain phases of the domestic situation, the foreign situation
will in a sense take care of itself."
Mr. Lamont urged early action by Congress on the proposal for an
emergency finance corporation. Asked by Senator Couzens if the railroads
could await such legislation, Mr. Lamont replied that if there were good
signs that Congress would give early action the roads could wait.
In regard to reported refusals of New York banks to extend further loans
to railroads, he said that certain roads are financed by short-term loans,
which banking houses have accepted readily, but banks can not continue
to lock up their forces indefinitely, and these loans must be refunded in
bonds before long. J. P. Morgan & Co. acts for several railroads, lie said.
Motives in Foreign Loans.
Mr. Mitchell told the Committee that it was the motive always of the
National City Bank to make foreign loans in the sense that it was playing
a part in the development of American trade and interests. Stating that
the foreign investments "very largely control the volume of export business"
of this country, he declared that banking interests which have floated loans
should receive praise rather than criticism.
Senator Couzens raised the question as to whether these loans had not
been used in foreign countries to produce goods to compete with American
products.
Foreign loans of American banking interests outstanding In 1930, Mr.
Mitchell said, totaled $7,841,000,000. He pointed out that the greater
proportion of foreign securities holdings were distributed among individuals.
In regard to holdings of German securities, Mr. Mitchell said that the
National City Bank holds $1,556,000 and that the National City Co. holds
$831,000. Ile said that his bank was not a manager in this country for
the banks of any foreign country.
Approximately 15% of German short-term credits have been paid during
the last few months, Mr. Mitchell stated. He explained that the amount
of such credit now outstanding is between $600,000,000 and $700,000,000.
Mr. Mitchell declared that he did not believe Government and commercial
credit in Germany should be considered as "one global thing." Regarding
credit, he said that bankers figure on the basis of what is best for themselves,
often taking a credit on which payment could be forced and adjusting it,
believing it to be in their selfish interest to do so. "In the end you may
do the same in regard to intergovernmental debts," he added.
In response to a question by Senator Harrison, he asserted that foreign
loans had not contracted the credit for American banks and American
people. He declared that in addition to foreign loans being dependent on
the good faith of the people in the respective governments, the character
of a people, their ability to work and produce, must be considered. "That
Is the kind of ability we find in the German workman," he said.
In the New York "Times" it was stated that a revision of
reparations payments and of Inter-Allied debts owed to the
United States was pictured as inevitable by Mr. Mitchell on
Dec. 19; he was emphatic in declaring his belief that payments probably could not be resumed at the end of the
present moratorium period, and that it was unlikely that
reparations ever would be completely paid by Germany. As
[vol. 133.
to what Mr. Mitchell had to say on Dec. 19 we quote the
following from Washington on that date to the New York
"Times":
The banker was called to testify primarily regarding loans floated In
this country and sold to private investors, and he did not class such loans
in that category. This testimony referred only to governmental obligations.
He said he believed that the present system where reparations and debts
would be paid off over a 60-year period would eventually result in "rebellion
in Germany."
Mr. Mitchell revealed that the National City Co. had handled $1,071,955,000 in foreign bond issues since the World War, and had made a net
profit of $13,392,502 after deducting expenses. The company also made a
net profit of $11,363,501 as its share of profits in syndicate operations In
foreign bonds totaling $3,260,407,000, he said.
No Default an Commercial Loans.
Mr. Mitchell, in reply to questions, said there had been no default on any
foreign commercial loans handled by the National City Co.
In testimony which departed somewhat from the matter of deals In
foreign bond issues in the United States, for which he was subpoenaed to
appear before the committee, Mr. Mitchell sketched the picture of generations of Germans born since the World War being faced with payment of
the war reparations in future years.
He had a sharp interchange with Senator Reed of Pennsylvania, who
argued that American "generations yet unborn" will object strenuously
to being forced to shoulder the payment of additional burdens due to
the default of debtors of the United States, it being conceded by Mr.
Mitchell that defaults in reparations might lead to defaults in payments
of the debts of the World War allies to the United States.
A German-American Impasse.
"There debts will have to be paid by the progeny of Americans who had
nothing to do with the World War," said Senator Reed, "so why should
they have to bear the burden, and the progeny of other nations go scot free?"
"I can't answer that," replied Mr. Mitchell.
"Then why won't the psychology of this country checkmate that other
psychology?" asked Senator Reed.
"That is an impasse," replied Mr. Mitchell.
This testimony on reparations, war debts and the moratorium came as
an interlude in a session of the committee, which concluded the examination
of Mr. Mitchell that was begun yesterday with Senator Johnson of California
in the role of chief interrogator. Senator Johnson, although not a member
of this committee, was the author of a resolution calling for an investigation of foreign bond sales in the United States.
Mr. Mitchell had prepared for the committee a tabulation of all German
bond issues floated in the United States by the National City Co. since 1919.
Senator Watson called the lists, bringing out the profits of the company
and dwelling on the issues for German commercial houses.
He Lists Bands That Made Gains.
No German governmental issues were handled by the National City Co.
except for possible participation by it is in the Dawes and Young Plan loans,
which were organized by J. P. Morgan, a detail which was not discussed.
Mr. Mitchell admitted that losses have been taken by American investors
on many foreign bonds, but said the same was true of American bonds,
adding:
"You must not get the idea that investors in foreign bonds have universally taken losses. By and large, I should say that the losses are less
in foreign bonds than In domestic issues."
He filed with the Committee a long list of foreign bonds which have
been called at prices which netted average capital gains to their holders
of 10.05%.
Mr. Mitchell was the second witness heard during the inquiry, the first
having been Thomas J. Lamont, a member of J. P. Morgan & Co., whose
testimony was completed yesterday. The hearings will be continued Monday
with the questioning, as now contemplated, of officials of Kuhn, Loeb & Co.,
Dillon, Read & Co., the Chase National Bank, and the Guaranty Trust Co.
Profit of $13,392,502 an Bonds.
Mr. Mitchell, in reply to questions by Senator Johnson, said that the
National City Co. had handled foreign bond issues since the World Was
totaling $1,071,955,000, on which a net profit had been made of $13,392,602,
after the deduction of $2,378,398 for general expenses directly attributable
to the bond issues. Of the so-called net profit, Mr. Mitchell said:
"It is the profit as best we can figure it on these particular items,
but does not cover our general expenses of operating our business, nor
any of our sales expenses."
Mr. 'Mitchell testified that his company also had made a net profit,
figured in the same manner, of $11,363,501 as its share from syndicate
operations in foreign bonds totaling $3,260,407,000.
As one example of the expenses and profits involved in foreign bond
issues Senator Johnson questioned Mr. Mitchell about a $32,000,000 issue
floated in 1929 for the Lautaro Nitrate Co., Ltd., a British firm operating
the largest nitrate factory in Chile. The direct expenses of this issue were
given as $181,541, and the net profit to the National City Co. as $809,485.
The bonds were issued by the National City Co. and three associates
which purchased the issue for 93%, were sold to an intermediate group of
five members for 94%, the National City Co. also participating in this
intermediate group, resold to a banking group of 76 dealers, the National
City Co. again participating in a diminishing scale at 955%, again resold
to a selling group of 488 dealers for 961
/
2, and finally sold to investors for 99.
All Made Gross Profit of Five Points.
This whole group, Mr. Mitchell pointed out, made a gross profit of 614
points out of 99, from which all expenses of issuance and sale of the
bonds had to be deducted. The National City Co. made the largest profit
on the transaction, he said, because its participation was larger than that
of any other group.
Senator IIarrison inquired if the National City had made a loan to the
American I. G., American subsidiary of the I. G. Farben Industry of Germany, chemical manufacturers.
Mr. Mitchell said such a loan had been made, but it did not appear in
this record, as it was a domestic loan. The money was "used quite completely in this country," Mr. Mitchell said. The National City has not
floated any loans for the I. G. Farben.
Senator Harrison said he had the impression that the American I. G.
had itself lent money to the I. G. Farben to use in the making of products
sold in competition with those of American manufacturers.
Mr. Mitchell said that this might have occurred, but he was not aware
of it. He offered, however, to furnish the Committee with a financial report
of the American I. G., of which he is a director.
DEC. 26 1931.1
FINANCIAL CHRONICLE
Asks of German Loan to Russia.
"Well, now, carrying out that idea," Senator Harrison asked, "have you
any knowledge of Germany within the last two years loaning to Russia
some $400,000,000?"
"I do not personally have any direct knowledge of specific loans, but
it is common understanding that the Germans have made advances to the
Russians," Mr. Mitchell replied.
Q. And in all probability that was done on the credit that they received
in America? A. Well, it is very difficult to trace the credits.
Q. Yes, but it had its influence, of course? A. Undoubtedly had some
influence, though the amount that they have loaned, I am of the impression,
is not large in the light of the whole economy of Germany.
Q. I understood it was $400,000,000. I thought perhaps you could
answer that? A. I cannot answer that.
Senator King of Utah asked a question:
Q. Would you have any knowledge, Mr. Mitchell, whether or not German
industrialists had made loans to Russia with the view of securing trade in
Russia? A. I think, Senator, that they have made the same character of
loan, if you wish to call it that, that has been made by so many of the
American companies. They sold goods with soint advance payment and
accepted deferred payments for the balance. It is the common practice not
only of German companies but of many American companies as well.
Q. Do you think that any of the loans which may have been made to
private corporations in Germany, if any have been made through your
bank, or by Americans, in turn were loaned to Russia by the German industrialists? A. That is a very difficult question for me to answer. I would
concede the possibility, in this way. Just as the General Electric Co. in
the United States has sold to Russia, part cash and part deferred payments, so the Allgemeine Elektricitat Gesellschaft, which is the General
Electric Co. of Germany, generally known as the AEG, which we have
financed to some extent, has made similar arrangements in Russia. Now I
cannot say that none of the money that we have loaned to the AEG has not
found its way In one way of another into those smaller credits to Russia.
It may have.
No Defaults on Commercial Loans.
At this point Mr. Mitchell submitted the schedule of bond flotations by
the National City, which prompted a question from Senator Barkley of
Kentucky whether there had been defaults in payment of interest or of
service of principal on any issues handled by the National City Co.
Mr. Mitchell said that there had been no default on any foreign commercial loans handled by the National City Co.; the same answer was given
by Mr. Lamont yesterday as to governmental issues handled by J. P.
Morgan & Co.
"In other words, they have kept up their payments on all these private
loans?" asked Senator Barkley.
"Yes," replied Mr. Mitchell.
Q. To what extent has there been any default on the part of either the
Industries or the governments of Europe that owe the United States money,
and to whom this moratorium will apply? A. We have had no defaults
from Europe.
Q. You speak of "we." Do you mean your institution, or do you mean
generally the banking institutions of this country? A. I am speaking of our
Institutions. Whether there have been defaults on some issues with which I
am not familiar—some of these municipal or other issues—I cannot say, but
with respect to our own experience, no defaults.
"Will you indicate your idea of the trend, if you do not object?" asked
Senator Gore.
"The trend is not good, Senator Gore, it seems to me. We have had
no political or economic happenings in the last few months in Europe that
have been particularly encouraging."
"In other words," said Senator Barkley, "it would be a miracle if within
the next six months there would be a sudden change in the trend which
would lead us to hope that at the end of that time we might not have
to do this same thing over?"
"I think I will agree with that," the witness answered.
Use to Which Loans Were Put.
Mr. Mitchell's discussion of German and allied debts followed a question
by Senator King as to whether he had knowledge of the uses to which money
lent abroad was put.
Q. Have you been sufficiently in touch with the loans that have been made
and the credits extended to know whether they are applied for the benefit
of the State—II am speaking of Germany—or whether some of those loans
were used in their military operations in strengthening the army of 100,000
soldiers, or arming them, or building 10,000-ton battleships, or any other
naval craft? A. With respect to the issues that we have made, we have
been meticulous in analysis prior to the issue that those issues were for
productive purposes. And for your information, so long as Mr. Parker
Gilbert was in Berlin, to the best or my knowledge and belief, we never
proceeded with an issue until we had the analysis of Mr. Parker Gilbert
to prove it to be of that character. Now as we made these loans, we
demand regular reports from these companies. We have men in Germany
who are in touch with these companies, and I think I can say without fear
of oontradletion that the moneys that we have given to German industries
and have been covered by our loans to various entities have been used for
the purpose set forth in our prospectus.
Q. Have you any information as to the disposition which would be made
of the several hundred million dollars which would be paid if there were no
moratorium, the disposition which would be made of that by Germany?
That is to say, if Germany has a moratorium under which she is freed from
the payment for one year of her obligations under the reparations, have
you any information as to the use which Germany would make, assuming
sheh has the money, of that money which would not go in reparations?
A. I have no positive information on that, Senator.
Q. Has Germany made any indication as to whether or not she desires
to use any of that money, if she has a moratorium and if she has the money—
has she indicated for what purpose she wants to use it? A. Not so far
as I know.
Q. Did France make any indication with respect to the utilization of the
money if the moratorium were granted? That is, use by Germany? A. I am
not in touch with the French Government.
Effect of Moratorium on Future.
Q. Then, BO far as you know, it is no purpose of the German Government
to be freed from the payment of the $400,000,000 or $500,000,000 to use
that for military purposes? A. I have no knowledge of that at all, Senator.
Senator King then asked:
"Have you any information—and I concede that it would be only a guess
or prophecy—as to the effect of granting the moratorium; that is to say,
do you think it will encourage Germany to ask a further moratorium? Will
4239
she in the future regard this as a breakdown of the wall, so that at the
end of the year she will ask for a further breaking down of the wall?"
"I do not know, of course, Senator," replied Mr. Mitchell, "but I think
we should all recognize that possibly there was set up by the original
Dawes Commission a principle that since has been violated by all nations,
a principle that appealed to me then, and still appeals to me, to be the
sound one, to wit, that debts created as a result of the war should be established in such amount that can be paid by that nation operating under all
of the burdens that their creditors may be operating under during the life
of that generation that had to do with the war.
"Now, the Dawes Commission established that in the most direct way
that they were permitted to, it seems to toe, under the limitations that
were upon them, by setting up 35 years as the term of payment for the
railway and industrial debentures which secured the first Dawes loan.
Bow Youth Looks at the Debts.
"Now, that 35-year period become sixty-two years when the English
came here, and with their laudable pride said to America, 'We owe so much,
and England always pays her debts, and to pay this it will take us 62 years.'
Therefore, 62 years became the general yard-stick instead of 35 years, if
you please, by which we measure the capacity to pay.
"I may seem to be going a long way around, but I am stating this in
order to come back to your question directly, because my mind operates
from these basic facts. Here we have in Germany to-day young men going
into the universities of Germany who were not born when the great war
started. Those young men see that not only this day but their progeny,
and the progeny of their progeny, must pay and go on for these generations
in paying a debt for which they, as individuals, were not responsible.
They feel that they are under the heavy yoke, and my impression is that
there is growing, as a result thereof, rebellion against the payment of
the debt.
"I think it is something that is readily understandable, and if you ask
me if it is my opinion that Germany will go through this entire period and
pay off the amount of debt that haa been set up under these various plans
for her to pay, I cannot conceive it to be possible, because I think that it
will bring rebellion."
"Not Preaching Cancellaticn."
"Then this moratorium is permitting the camel to put its nose under
the tent, and it will force itself into the tent, and it will result in a
further demand for the complete extinguishment of the obligation; is that
your philosophy?" asked Senator King.
"I would not go so far as to say that," replied Mr. Mitchell, "but all
of this leads me to the conclusion that nationally the countries involved
in this question have found a problem that is political and psychological,
and that they must consider and handle. I do not believe that it can be
taken quite on the simple base that the debt was contracted and the debt
must be paid."
Following this series of answers to questions by Senator King, Mr.
Mitchell stated:
"I am not preaching, Senator, in what I am saying, any doctrine of
cancellation. I want that to be clear. I am trying to develop some of the
psychology of the people that may have a direct bearing on this question."
"Would not that apply to every nation that owes us debts? Would it not
apply to France and England, who owe this debt and who are to pay during
the 62 years, quite as much as to Germany?" asked Senator Watson of
Indiana.
"Yes, I would say so," conceded Mr. Mitchell.
Asked by Senator Gore of Oklahoma if there was not a legal and moral
difference between the reparations paid by Germany and debts of other
nations to this country, Mr. Mitchell conceded that point, but said:
"At the same time, I think that if reparations were not received by those
Allied countries who owe us, that we would have developed the same
character of thought and argument—to wit, that those inter-Allied debts
are debts which, in reality, resulted from the war."
Senator Reed pointed out that most of the annuities under the Dawes
Plan were fixed at 25 and not 35 years.
Mr. Mitchell said that what he had intended to make clear was his
interpretation of the Dawes Commission's implied intention as expressed in
the brief term of annuity payments.
"All right," conceded Senator Reed. "Now you say that there is
growing up in Germany a psychology on the part of the younger people
which leads them to want to accept all of the benefits created by preceding
generations, without any of the obligations. That is understandable. Young
people enjoy getting benefits and do not enjoy bearing burdens.
"But is it not reasonable to think that the same psychology will grow
up over here that very large war debts were created, and that this
money is going to be paid by a generation of Americans that had nothing
to do with this war?
"Now why should the progeny of Americans who had nothing to do with
the war, progeny of Americans who were not even alive, pay this war debt,
and the progeny of the people who started it go scot free? I confess I
cannot see that, Mr. Mitchell."
"I grant with you," Senator Reed, "that that is quite unanswerable as an
argument within itself," said Mr. Mitchell.
"Then why is not the psychology that is going to grow up in this country
by refusing to cancel these debts going to be a complete checkmate to
the psychology abroad that wants to have these debts forgiven?"
"It is an impasse that will retard the time of world development with
respect to economy and exchanges, and understandings for a long time to
come," replied the witness.
He Discusses Wiggin's Views.
Senator Reed asked Mr. Mitchell If be thought that the "repeated
speeches" of Albert Wiggin of the Chase National Bank and head of
the Wiggin Committee, advocating the complete cancellation of debts,
did not "make the task of this Government very muds harder in collecting
these eminently just debts?"
"I have not any question," said Mr. Mitchell, "but that Mr. Wiggin, in
making that expression, feels that that is the only way out. I think that
any expression of that sort makes it more difficult for governments to sit
down and view this question in all of its phases and reach an answer that in
itself is sound. That is why I say to you, as I said yesterday, that I
am
not in favor of the cancellation program. Our institution has never
taken
the standpoint that we were for cancellation."
"I hope it will never be that," said Senator Reed.
"Why mention Mr. Wiggin alone?" interposed Senator Johnson.
"Are
you not aware that Mr. J. P. Morgan has said that he believes in
cancellation of these debts?"
Mr. Mitchell said that be did not recall "exactly Mr. Morgan's
statements."
Bank Reports Expected to Detail Holdings of German
and Other Foreign Obligations.
The following is from the New York "Times" of Dec. 20:
The attention paid by Wall Street last week to the testimony given by
Thomas W. Lamont of J. P. Morgan & Co., and by Charles E. Mitchell,
Chairman of the National City Bank, before the Senate Finance Committee
gave a clue to the interest in the annual reports of N. Y. City banks, due
next month.
It is generally expected that the banks will mark down their portfolios
to market values as of the close of the year and will inform stockholders
and the public in general of the precise amounts of their individual commitments in Germany and other foreign countries that are now suffering
financial distress. The totals of these investments have been a source
of much conjecture.
Mr. Lamont told the Senate Finance Committee that the largest amount
of German short-term investments held by any one bank was $70,000,000
and that that institution's resources were so large that these holdings
"are not even an occasion for comment." Mr. Mitchell offered figures
to show that foreign bonds held by the banks are of comparatively small
amount.
Notices mailed to stockholders last week announced that the National
City Bank, the Chase National Bank and the Corn Exchange Bank Trust
Co. would hold their annual meetings on the same day and at the same hour,
Jan. 12 at noon. This unusual coincidence of meetings will result in an
extraordinary concentration of banking developments. Investors who are
shareholders in all three institutions will find themselves torn between their
Interests in the three meetings.
The Chase National Bank has notified its shareholders, who are identical
with the shareholders in the Chase Securities Corp., that it will ask them
to approve a reduction in the capital of the securities company. Other
banks aro expected to make important readjustments in their capital and
reserves not only for write-down purposes, but to take account of mergers
and other developments in the last year. As a result of the widespread
discussion of security affiliates, it is said to be possible that some of the
larger banks may decide to make public the portfolios of such adjuncts for
the first time in history.
List Supplied to Senate Finance Committee by President Mitchell of National City Bank of New York
to Show that Losses in Foreign Securities Are No
Greater Than in Case of Domestic Bonds.
In support of his assertion that American losses in foreign
securities are no greater than in domestic bonds, Charles
E. Mitchell, President of the National City Bank of New
York, has filed with the Senate Finance Committee the following comparison of prices on representative foreign securi-
AAA=
A AAAA
AAAA AAAA
XX
W.WOMM
Mg.o14.00W+3.,,,
WOWW11..WOCO100..0.Q.40
105
110
10434
92
11331
102
108
92
10414
88
103
94
101
8814
9734
90
9614
10144
000000000000W00.0
CnOW.P.00It.WOOW
03*..0Col,
119,506,000
Austrian 75, 1923-1943
47,397,000
Belgian 7s, 1925-55
30.000,000
Denmark 6s. 1922-42
14,408,000
Finland 514s, 1928-58
74,741,000
French 78, 1924-49
Paris-Lyons-Mediterranean RR 68, 1922-53 38,953,000
81,960,000
German 7s, 1924-49
14,512,000
Berlin 65, 1928-58
38,367,000
Dutch East Indies 68, 1922-47
German Central Bank for Agri 68 1927-60-, 48,380,000
134.321,000
Japanese 614s. 1924-54
40,440,000
Chile 65 1926-60
36,545,000
Argentine Os, 1923-57
48,738,000
Australian 410, 1928-56
91,373,000
Italy 7s, 1925-51
48.583,000
Peru 6s. 1927-60
-fia•
56,921,000
Brazil 610, 1926-57
7,646,000
Hungary 710, 1924-44
1931
1930
High. Dec. 16.
DOMESTIC.
10134
10014
8554
9434
8034
9734
10114
9534
97
9014
9334
98
80
99
9594
9515
10034
94
95
99
9144
10134
85
81
92
10034
102
94
94
9934
99%
9934
9931
10314
9434
9834
110
9734
9634
101
9554
102
79
72
9934
9634
10234
19234
11314
10334
10611
10534
10414
AA
XX
101
105
10454
9934
9044
87
9814
10434
100
10534
10154
84
9634
7834
10034
103
98
10134
9844
84
128
95
9734
6114
10034
79
10134
, 10034
73
High
1931.
X
112
11134
High
1930.
XX A XXX
American Rolling Mills 414s, 1933
Alleghany Corporation 55, 1944
Allegbany Corporation 55, 1949
Allegheny Corporation 5s, 1960
American & Foreign.Power deb 55, 2030
Associated Gas & Electric cony 410, 1949
Associated Gas & Elec cony 5s, 1950
Baltimore & Ohio cony 410, 1960
Canadian Pacific collateral 434s. 1960
Central of Georgia Ry ref & gen 55. 1959
Chesapeake Corp collateral 58, 1947
Chicago & Eastern Illinois 5e, 1951
Chicago Milw St Paul & Pae mtge 5s, 1975
Chicago Mllw St Paul & Pao ad)53,2000
Chicago dr Northwestern 1st & ref 410,2037____
Chicago & Northwestern cony 4348, 1949
Chicago Rock Island & Pacific! see 434s, 1952___
Chicago Rock Island St Pacific cony 410, 1960.
•
Chile Copper Co 58. 1947
Central States Electric 5s, 1948
Cities Service Co cony fe. 1950
Denver & Rio Grande ref & imp 58. 1978
Erie RR ref & impt 53, 1967
Florida East Coast 58, 1974
General Theatre Equip 65, 1940
Goodrich Co B. F 6s, 1945
Great Northern Ry gen 4145, 1977
Gulf States Steel 5148, 1942
Hudson Coal 53, 1962International Match cony 58, 1941
International Match cony 5e, 1947
International Paper ref 65, 1955
International Telephone 4145. 1952
International Telephone 53, 1955
Middle West Utilities cony 58.1933
Middle West Utilities cony Ea, 1934
Middle West Utilities cony bs, 1935
Paramount Famous Lasky 68, 1947
Paramount Publix 5545, 1950
Pan-American Petroleum of California Os, 1940
Philadelphia Reading Coal & Iron Os, 1949
Phillips Petroleum 514s, 1939
Postal Telegraph & Cable Co 5s, 1953
Remington Rand 514s, 1947
St Louis & San Francisco 414e, 1978
St Louis Southwestern 1st term 53.1952
Seaboard Air Line 6s, 1945
Seaboard All Florida 6s. 1935
Skelly Oil Co 514s., 1930
Wabash RR ref 414s, 1978
Wabash RR 58, 1976
Wabash RR 53, 1980
Warner Bros Pictures 65, 1939
Waldorf Astoria Hotel 7s, 1954
Warren Bros cony 65. 1941
Western Union Telegraph 55, 1951
Western Union Telegraph Ss, 1960
Youngstown Sheet & Tube 5s, 1978
High
1929.
Preseni.
69
28
23
15
34
33
37
34
60
2034
6034
714
25
634
26
24
3534
25
5034
30
4234
3234
27
A
Security.
1
of eventual payment.
Asked by Senator Johnson if member banks of the Federal Reserve
System hold any of the foreign bonds sold by the National City Co., Mr.
Mitchell replied:
"Oh, yes, of course they have. They have many. Of course, the Federal
Reserve banks themselves have none-just the member banks."
The list submitted by Mr. Mitchell concerning foreign bond issues did
not contain Canadian or Cuban issues, but he promised to forward these
and have them in the Committee's hands by Monday.
1929
High.
A AAAAXXX
"Losses Not Universal."
"In other words, we must not get the idea that investors in those foreign
bond issues have universally made losses."
Q. But they are now making losses? A. Just as they are with respect
to domestic bonds.
Q. Any greater losses? A. I would be glad to give you some comparisons
here of the shrinkage here.
Q. Are they greater or lees? A. By and large, I would say they were
less in foreign bonds than they were on domestic bonds.
Senator Gore asked that Mr. Mitchell also prepare a list of defaulted
foreign bonds, but the witness said this would be difficult to collect.
Instead, he offered for the record a selected list of foreign and domestic
bonds showing the highs reached in 1929, 1930 and 1931, and present
quotations. It was accepted by Senator Smoot of Utah, Chairman of
the Committee.
Mr. Mitchell declined to commit himself on a question by Senator
Thomas as to whether domestic or foreign bonds stand the better chance
Approximate
Amount.
Outstanding.
Issue,
AA
"Public Made Great Many Looses."
Senator Thomas of Idaho brought out through questions that seldom,
If ever, has the National City Co. suffered a loss on one of these bond issues.
Mr. Mitchell testified, however:
"I think there are one or two in the syndicates managed by others that
show red figures."
The resulting comment by Senator Thomas that "the public certainly
made a lot of losses," brought a sharp retore from Mr. Mitchell, who said:
"The public made a great many losses, as they have in all bonds and
securities of any kind, Senator. But in this connection I would like to call
your attention to the fact that the public has also made very large profits.
"I have here a group of 22 issues of foreign bonds which have been
retired. These issues ran to the aggregate of $425,000,000 principal
account; they were sold to the public for $416,015,000. In return upon
redemption, the holders received a total of $460,550,000, or a net profit of
$44,535,000, equivalent to 10.705% upon their original Investment; and
while they held that investment, as long as those issues were outstanding,
they had a weighted average return of 7.85% in current interest, which
was punctually received by those investors.
REPRESENTATIVE LIST OF FOREIGN BOND ISSUES.
A AA A X
question.
Paralleling Mr. Lamont's description of the J. P. Morgan & Co. practices,
he said that the bonds were allotted to banks for gale on the basis of purely
voluntary agreements and without coercion.
ties; the list as given below is from a Washington dispatch
Dec. 20 to the New York "Herald Tribune":
...
.
...
100000.b.D00.0.4000.40.0.00000000000-4..10000000.4.4200000.40t000000.40!0!000
1,
,
0000.
00000O000.0!..1.4
000!0,
. .g..000.0-4.q..4004.0,
00WO00IPOtP.0!0.CR0!O,
0!a...1*.*.P.C400-4100
Discussion of debts and reparations having been concluded, Senator Johnson requested 15 minutes, and in this time he read into the record, with
the confirmation of Mr. Mitchell, a long list of selected bond issues for
the accounts of foreign commercial houses issued by the National City Co.,
most of these being for the benefit of German interests.
Mr. Mitchell had come amply prepared for the questioning, and he was
able not only to answer all questions relating to deals but to take from
his voluminous brief case specimens of circulars describing the bonds in
[VoL. 133.
FINANCIAL CHRONICLE
AAA
4240
5
334
34
5934
2014
3734
4734
43
30
38%
4014
42g
4114
46
40
3634
1534
3334
5044
2534
3434
1644
15
3
114
48
10
9
10
29
1814
39
6234
61
57
Otto H. Kahn of Kuhn, Loeb & Co., Before Senate
Committee, Says Germany Will Pay-Would Put
Private Debts Before Reparations-War Debt Postponement Praised-Give's Firm's TransactionsHelped Float $1,136,750,000 Foreign Loans Since
War-United States Claims Just, but Expediency
Must Be Guide.
A Nation should pay its debts to private persons first,
then its debts to another Government,if such a hypothetical
choice were faced, Otto H. Kahn declared before the
Senate Finance Committee on Dee. 21. Reporting at
length what Mr. Kahn had to say, a dispatch from Washington Dec. 2/ to the New York "Times" is quoted herewith
infuih
A partner in Kuhn, Loeb & Co., Mr. Kahn was the third leading New
York financier to appear before the Committee, which, acting on a request
of Senator Johnson of California, is holding a series of hearings on foreign
loans floated in this country bearing on war debts and the moratorium.
Preceding witnesses were Thomas W. Lamont of J. P. Morgan & Co., and
Charles E. Mitchell, head of the National City Bank.
Mr. Kahn in his statement as to priority was emphatic in :saying that
such a choice would be brought up by a condition assumed rather than
actually existing.
"In order to keep the economic life of a country going, in order to pay
taxes, in order to enable it to do its daily work, the sanctity of contracts
must be protected to the limit of what is possible," he said. He added:
"It is of less importance that one government pay another government
to the minute and upon the day what it owes, if it can by mutual consent
secure a postponement, than that the confidence of the ordinary individual
dealing in one country with another individual in another country, should
be profoundly shake% in the faith and credit of the business community
with which he does business in other countries."
In the case of Germany, he asserted, the Government would be left
impotent if commerce were stopped and therefore boll) governmental and
DEC. 26 1931.]
FINANCIAL CHRONICLE
4241
Senator La Follette recalled an estimate given another committee that
in October there were $261,000,000 of foreign securities in default.
"I should say it was an underestimate," Mr. Kahn said.
Mr. Kahn was asked by Senator Smoot of Utah, Chairman of the Committee, how many defaults his firm had experienced in the past 20 years,
and replied that "the number of defaults in our case is very limited."
He added that there had been only one failure among its foreign loans,
that being the Mortgage Bank of Chile. Its domestic failures, he said.
had been few, but had included the recent receivership of the Wabash RR.
Mr. Kahn was asked to tell the manner in which foreign borrowers
approach investment houses' for loans. He replied that they usually
used one organization, except for the Argentine Government, which, he
said, has almost a principle to rotate in this matter.
Mr. Kah, replying to questions by Senator Barkley of Kentucky, said
Kuhn,Loeb & Co. Not Party to President Hoover's Plan for Debt Moratorium. that all foreign loans "are, in principle, passed on to the public."
"The essential virtue of the banker," Mr. Kahn went on. "and parMr. Kahn put into the record a statement terming the allegation that
the private banker, is that of liquidity. If that were not so, he
Kuhn, Loeb & Co. or any of its officers had been parties to the President's ticularly
would very soon find himself so locked up with the issues put out that he
plan for a moratorium as an "absolute falsehood."
not continue.
He did not name the source of the allegation, but it was recalled that could
"Consequently, his effort is to buy bonds and sell them.
Representative McFadden of Pennsylvania, in a speech before the House,
is a merchant. He is a merchant to that extent and so much
"He
had named Mr. Kahn's private banking house as an adviser of the Presiso that, in England, the ordinary appellation of such a banker still in
dent in formulating the moratorium.
banker. IIe does not call himself a 'banker,' but
Mr. Kahn estimated, as have previous witnesses, that more than $600,- use is that of merchant
'merchant hanker.' unless he is a house of deposit, which we are not.
000,000 in German short-term securities are held by banks in the United a
of the private banking business, the issuing
interest
essential
"The
States, and stated that he believed that to be a moderate total in considerabusiness, is that the bankers buys securities of such a nature that he feels
tion of the size and the business of Germany.
reasonably confident he can sell them to the public, and, having sold
them, he is then free to go on with other business. If he locks himself
Endorses Reconstruction Plan.
Mr. Kahn testified that Kuhn, Loeb & Co. had issued foreign securities up by retaining his own goods, he will very soon be so locked up that
in the United States, either as originators of bond issues or as participants his usefulness as a banker will have ceased.
In syndicates, totaling $1,136,750,000. He was unable to give an estiTells of"Moral Obligation."
mate of his company's profits.
"And I might add that we have frequently made it our business, a
Of these securities, $577,750,000 were originated by his firm, while
, that, if there is an undue or unjustifiable
.
contingent part of our obligation
the remainder, $559.000,000, were issued in association with J. P. Morgan
decline in bonds, if there is not a fair market for the bonds, we have more
& Co.
order to afford opportunity to such people
in
market
the
into
gone
than once
The issues of foreign securities were, in principle, passed on to investors,
want to sell, or as are compelled to sell, within the limit of proper
Mr. Kahn testified, after describing that the business of a banker is to as may
prudence and within the limit of our ability, for them to do so."
"remain liquid." If a banker ties up much of his money in long term bonds,
Mr. Kahn discussed the "moral obligations" of bankers, as he sees them,
he ceases to fulfill his function in business, he said.
in continuing testimony dealing with "banking prejudices."
At the same time Mr. Kahn conceded, under questioning by Senator
are human," he said, "and, being human, I suppose we are ac"We
La Follette of Wisconsin, that banks probably hold many such foreign
tuated by ordinary human motives, one of the motives being to do what
bonds, either by original purchase or as security for defaulted loans.
we can to discharge our moral obligations.
Mr. Kahn was at pains to qualify almost every sentence of his testimony.
"And another motive is not to discharge them at the expense of someThere was no qualification, however, of his espousal of greater co-opera- body else. I think that is just as strong and decent a human motive as the
tion between nations and in domestic matters. When asked his opinion other.
of the proposed establishment of a Reconstruction Corporation as sug"Another one is to do what we can as American citizens to be helpful in
gested by President Hoover, he endorsed it enthusiastically.
the situation, which is one that concerns not only the banker, but as well
farmer, the workingman, the consumer, the producer and all of us. We
the
Defines Bankers' Responsibility.
in the same boat.
The questioning of Mr. Kahn on the primary topic of bond flotations are
"If ever a banker was called upon to divest himself of any banking
was limited to description of the sale of two Swedish loans totaling $55.prejudices, and to give the best, the most unbiased, the most impartial
000,000 and four for the City of Oslo, Norway, totaling $19,000,000. The
advice he is capable of, that time is now. I am quite sure we all feel it.
first Swedish loan, for $25,000,000, since has been paid off, Mr. Kahn
"I am quite sure that, in advising to the extent we are called upon to
testified. The hearing was closed before he had time to tell of other foreign
advise what should be the attitude of our government in economic and
loans by his firm.
inancial affairs, where the bankers' interest is indirectly involved, we are
Mr. Kahn was questioned on the obligations of the issuing houses to always seeking to divest outselves of our banking prejudices to the extent
Investors. He admitted, in reply to Senator Johnson of California. that
that they may exist."
the organizers of a foreign bond issue guarantee to obtain the loan for the
borrower, and said that if the bonds fail to sell, "then we are stuck."
Banks Hold Few Long-Term Bonds.
It also developed that Mr. Kahn's firm had participated in selling 175,000
"Mr. Kahn, conceding that to the full, nevertheless there is the bankshares of common stock of the North German Lloyd in America in 1928 ing prejudice that you want to see securities retain the value at least that
at .$69 a share.
you sold them for to the public?" asked Senator Johnson.
Questioned by Senator Couzens of Michigan as to the discretion of a
"Very naturally."
banking house's handling the sinking fund for retirement of a foreign
Q.—And, if legitimately and within your duties as you have described
bond issue, Mr. Kahn said that such a bank "acts in a ministerial capacity them, you can maintain the price of those securities as you put them
and without discretion" and must redeem bonds only at the express in- out, of course you do it? A.—Yes, but may I amend my assent to this
by saying not to maintain the price but maintain the value.
struction of its client.
the value? A.—Yes. Those bonds are held by hundreds
In reply to a question by Senator Couzens as to the direct obligation ofQ.—Maintain
thousands of American citizens. They are not held by banks, they
of the issuing houses to the purchasers of the bonds they issue, Mr. Kahn are not held by rich men, but are held by hundreds of thousands, and
probably by millions, of American citizens.
defined the issuing house's responsibility to its client as follows:
Q.—Could you tell me what banks, if any, hold foreign securities at
"It has got to give to it, to the beat of its ability,its advice and its service,
present time?. A.—I do not know. Not having access to the portthe
outstanding."
as long as that loan is
folios of the banks, I am unable to answer that question definitely. but I
will say that I do not think many foreign bonds are held by banks. I
Action in Case of Default.
think they are very widely distributed. It would apply to short-term
"Does that same obligation exist with respect to purchasers of securi- foreign credits. I doubt whether there are any great quantity of longterm foreign credits in existence.
ties?" asked Senator Couzens.
Q.—Do I understand you to say that, so far as your knowledge extends,
"Distinctly,so far as that is possible," replied Mr. Kahn. "It is naturally the banks are not holding'short-term foreign credits?. A.—Indeed they
limited by financial considerations and by financial possibilities.
do, yes.
Short-Term Loans Not Large.
"But I do think that an issuing house has that responsibility, that
continuing responsibility, to render to its constituents, from whom it
"And they hold them to a very large extent, do they not?" Mr. Kahn
bought the issue on the one hand, and on the other hand, to the public was asked.
to whom it sold the issue."
"'Very large' is a relative term," he replied. "I think the total of the
Questioned as to responsibility of an issuing house in the event of de- short-term credits which have been extended abroad is not relatively
said:
Kahn
Mr.
principal,
or
faulted interest
(and by relatively I mean in relation to the total resources of the country)
"The issuing house considers it its responsibility to do everything in its a very large sum.
power to reconstitute and re-establish the solvency and the good credit
"As I stated this morning in coming down here, if I may be permitted
of the property; to protect the bondholders against any undue exactions to make a remark of that nature, that if the World War had continued one
out
work
to
them;
best
the
of
of
plan
possible
that might be demanded
month longer than it did—and we all expected it to continue five or six
reorganization, and to give advice in all due fairness to the bondholders months longer, for the best authorities thought the war was going to end
concerned; to give its efforts, its experience, its ability fairly and properly in the spring of 1919 instead of in the Autumn of 1918—if the war had conto deal with the situation after the default has been created."
tinued one month longer, we would have spent as much and probably more
In that one month than the entire amount which we have placed in Germany
Defaults Held "Very Limited."
either in bonds or long-term credits."
Mr. Kahn said his concern sometimes was required to set up bondQ.—I have seen in an article by Mr. Frank Simonds the statement
holders' protective committees. The company, he went on, always kept (I believe it was on yesterday) that there were $2,800,000,000 of securities
in touch with bondholders' committees, and rarely gets a fee for acting that Germany had out in all countries? A.—Yes.
on such a committee.
"And that it was much larger than it was generally considered to be?"
"But your officials may go on such a committee and receive a fee for
"That is in all countries," Mr. Kahn answered. "That only means,
so serving, as I understand," he was asked.
perhaps, an additional Justification for what the American banks did in
"Such a fee is more or less a nominal one," Mr. Kahn answered. "It making short-term loans and in giving credits to Germany.
may be a few thousand dollars, but it is not a fee of any exorbitant di"England was living right scram the street, so to speak. from Germany.
mensions.
She had an age-old prestige for judgment and wisdom in the matter of in"Generally speaking, it is safe to assume that an issuing banker serving ternational financial borrowings. We were perfectly justified in following,
on a protective committee would, as such, receive no more than any In our judgment of what was reasonable banking practice, the example
other banker serving on the committee; that the compensation of the of a wise old nation like England, being right there,and of a wise old nation
man serving on such a committee is, by any standard, a moderate one; like Holland, being next door to Germany, who, in proportion to their
that the expenses of various kinds, such as taxes, are heavy in comparison resources, gave larger short-term credits to Germany than America did.
with and over and above any compensation which the banker may receive
Short-Term Loans $600.000.000.
for serving as a member of a protective committee."
"Will you state how much short-term credits are held in America"
When Senator La Follette asked about defaults on foreign bonds, Mr.
"My estimate is that it is something in excess of $600,000,000," Mr.
Kahn replied:
"In the case of Germany there are hardly any in default. In the case Kahn said, "which I do not consider an exorbitant sum for a great creditor
of South America and Central America, unfortunately, the great ma- nation to extend as an accommodation to an intelligent, hard-working
European nation of the ability and proven and tested capacity like Germany.
jority are in default."
private debts would be lost should the reparations receive priority over
private obligations.
Holds Moratorium Averted Disaster.
Declaring that the moratorium action by President Hoover had prevented
a catastrophe, Mr. Kahn voiced his faith in Germany's ability to pay her
debts, but urged that expediency be the guide in dealing with obligations.
"On the point of justice," he said, "I think we have a 100% case—a
200% case—but it evolves into purely a question of a careful study of what
it is expedient for us to do. How can the world, including America, best
get out of this mess it Is in?"
"Jou do not subscribe to the European formula of doing so at the expense
of America?" asked Senator Reed of Pennsylvania.
"I do not," said Mr. Kahn.
4242
FINANCIAL CHRONICLE
[Vol,. 133.
"It may be locked up for a while, yes; but that is the ordinary risk of the
Q.—Yes, but would you feel it was a good loan now? Would your
house underwrite another loan to Germany now? A.—At this moment, no.
business.
Q.—Could you estimate the good that was done to Germany by this
"And the granting of credits for the purpose of facilitating trade—and
one year's moratorium proposed by the President'? A.—I believe it was
thereby stimulating the entire economic life of all the world, a repercussion an absolutely vital thing at the time.
of which is bound to redound to the advantage of America—the granting
Q.—Did it accomplish its purpose? A.—It accomplished the avoidance
of such credits is a legitimate, natural, old-established banking function." of the catastrophic result. I think it did a great deal of good, and if it
could have gone through with the universal acclaim and acquiescence that
Asked by Senator Johnson what the effect would be on German short- originally
seemd to be indicated, it would have been of Incalculable value.
term credits if Germany went off the gold standard, Mr. Kahn replied:
As it Is, it was of great value.
Well, that is rather a dual subject involving a great many cases. We
No Connection With Moratorium.
have the case of England, where thus far it has not affected any foreign
"Is Germany worse off to-day than she was in June 1931?" asked a
obligation of the British Empire. To what extent Germany—if it had to
Senator.
undergo the additional shock of going off the gold basis, especially after the
"Intrinsically, no; actually, yes, but intrinsically, no," Mr. Kahn said.
horrible experience which Its people underwent during the period of inflation—to what extent the German nerves would break completely if that He went on:
"This,
perhaps, gives me a legitimate opportunity, Mr. Chairman, to
additional blow fell I am unable to say."
say one word as to something which was said in another place. I should
Britons Meeting Obligations.
like to say very emphatically—probably it is not necessary to say it—that
"I ask you now what effect Germany's going off the gold basis would no member of my firm—no one connected with my firm—had anything to
have on short-term obligations."
do whatsoever with the granting of the moratorium; with any attempt to
"Senator Johnson. England's going off the gold standard has had no influence the President to take the step he did, or with any kind of propaeffect upon private obligations of the British Empire in a general way. They ganda whatsoever.
are meeting their obligations as they did before."
"No member of my firm is, or ever has been, nor is my firm in any conQ.—With the reduced pound or the same standard dollar? A.—With tact with any foreign
government, except to the extent—and the extent Is
the gold standard dollar to the same extent that the loans cover it.
rare—in
which we do business with foreign governments.
Q.—But these short-term loans made by American bankers to Germany
"I want to say it, as emphatically as I can, that any allegation which
are parable in gold marks? A.—No. payable in the gold dollar, all of
them.
connects us in the remotest manner with the negotiations or proceedings of
Q.—So that, if Germany were to go off the gold basis, your contention the moratorium, or
with President Hoover whatsoever. In the matter. Is
Is that these short-term credits extended to commercial houses and banks
In Germany, would not affect our loans to them? A.—I di not say that. utterly and outrageously unfounded.
"I would like to say at the same time, if I may. one word say in regard
if you will pardon me. I did not wish to convey that impression. Great
Britain's nerves and Great Britain's economic situation are very different to connecting Paul Warburg with my firm.
Perhaps this may be worth
from the German nerves and the German economic situation, and what while to
answer that Mr. Warburg is a Democrat and supported Mr.
Great Britain can stand is very different from what Germany can stand.
Smith
and
not
President
Germany,
to all intents and purposes, is not on the
Hoover."
As a matter of fact
gold basis now, because of the essence of the gold basis Ls a free flow of
Economic Life Held First Essential.
gold, which does not exist in Germany.
The question of priority concerning reparations and governmental
Control of Paper Currency.
debts
as opposed to private obligations represented by foreign bonds sold
in this
"Then that is true of Canada, too?" Mr. Kahn was asked.
country was brought up by Senator Barkley.
yea,"
a
limited
time
he
being
extent,
for
to
the
Canada
of
true
"It is
"If we were justified in assuming from the economic conditions, now
replied. "They still say that Germany is on the gold basis, when, as a or in the
future, that those public and private obligations could not be
matter of fact, Germany is on a gold basis for the purpose of measuring paid, is there any
consensus of opinion in the banking world as to which
bills, and it is not on the gold basis for the purpose of internationality for the should have
priority: the loans in the United States or the loans in the
time being. And what would be the effect if Germany slid off the gold governments of Europe?"
he asked.
basis I am not prepared to say."
"Senator, may I say, first, that privately held loans—that is, loans
"It would not be helpful to American credits?"
issued by cities and corporations in the shape of long-term bonds—are
"No."
not, as yet, under any moratorium," replied Mr. Kahn. "They are
"The psychology of the situation would be bad, to say the least?" asked paying their
interest and sinking fund, and have done it right along.
Senator Barkley.
"As to whether the governmental claims or private debts should have
"Yes, particularly as to the psychology of the situation in Germany if
precedence, one necessarily can only express an opinion, which is subJect
we look back at the horrible times they went through when they were off to controversy
and subject to error. My own belief is that the essential
the gold standard," said Mr. Kahn.
thing is to keep the economic life of a country going, because the Govern"But isn't that the difference between what they call control of paper ment would
very
soon find itself out offunds unless the economic life is going
currency and what happened in Germany, where it was a case of unEconomic Life Interwoven.
controlled paper currency?" asked Senator Couzens.
"The question is, to what extent can you control paper currency," Mr.
"In order to keep the economic life of a country going, in order to pay
Kahn replied.
taxes, in order to enable it to do Its daily work, the sanctity of contracts
Praises Britain's Stability.
must be protected to the limit of what is possible," Mr. Kahn continued.
"It is of less Importance that one government pay another government
"It has been demonstrated that some of these countries are controlling
paper currency, otherwise they would not be getting on as they are since to the minute and upon the day what it owes, if it can, by mutual consent,
secure a postponement, than that the confidence of the ordinary
they went off the gold basis_"
"One of the countries being England." replied Mr. Kahn, "which is individual dealing in one country with another Individual In another counparticularly distinguished by steady nerve, by stability, by coherence of try or a business man dealing with another business man should be profoundly shaken in the faith and credit of the business community with
Its population.
"It is relatively easier for England, with her natural qualities and her which he does business in other countries.
"And I think the economic life of all countries is so interwoven that
condition,
to
manage
a
paper
currency
than any other country."
position and
Senator Couzens asked If it were conceivable that America could "man- the economic prosperity of one country is bound, in one way or another,
age" a paper currency as European countries are doing, and Mr. Kahn to have Its repercussions here.
"It does not necessarily mean that that country will buy goods and
replied. "I think America has pretty well demonstrated in the past she
chattels here; it does mean that the economic capacity of that country
can deal with any necessary task that she is called upon to face."
"Is it not conceivable to you that with the present high value of the will be treated in one way or another, in the most indirect ways, and that
will favorably reflect upon the economic condition of America, and
gold dollar these debts will never be paid on that basis_"
those
"It is conceivable," conceded Mr. Kahn, but he added: "That embraces, repercussions will result here.
"It will help her cotton; it will help her wheat; it will help her copper,
question
as
to
what
should
be done with those debts,
of course, the entire
and it is bound to do so.
both in the way of reparations and debts due to America."
A Question of Expediency.
Favors Reconstruction Corporation.
"Now It seems to me it is a question of expediency," said Mr. Kahn,
Mr. Kahn gave his support to President Hoover's proposed Reconstruction
Corporation in replying to Senator Couzen's questions concerning the "of figuring out in what way will the postponement, if It is necessary—
that is a question of examination; that is a question of research and
ability of domestic debtors to pay off their debts at the present high value and
of impartial and bard-boiled judgment—to what extent will an inevitable
of the gold dollar.
postponement
be of least damage to the United States and to the people
"That is where the groat advantage comes in of the corporation known
of the United States and to all the world, and to confidence, which is the
as the War Industries Corporation (the proposed reconstruction corporation)
most essential part upon which the trade of the world rests.
which is essentially a corporation that protects the debtor," replied Mr.
"My personal belief is that the maintenance and sanctity of contracts
Kahn. "And rightly so; rightly so. I think the debtor is entitled at this
between. man and man is an absolutely vital thing for the economic life
time to all the protection that the government and the moral sense of the
of
every country, and that no government can go on and be capable and
community can throw around him.
potent unless it has behind it a capable and patent and solvent country.
"I think it is a wicked thing to compel the debtor—in extraordinary
"The direct resources of the country are drawn, not from the air, but
times like these. In the face of which he stands helpless to deal with them
from the labor, the enterprise, and the capaicty and the honesty of the
—it is a wicked thing for the bank to go to extreme measures, but it should
people
over which it rules.
make it possible for him to tide things over.
"If a choice must be made, I should say they should either take prece"That should be done. I think, because it can be significantly done by
dence or they should, at least, be put on something slightly better than a
the Government. It should be done by everybody else. It should be
parity."
done to the extent that there is as much protection as possible by the
"Do you believe that private obligations should take precedence over
banks. It should be done by the public to keep from putting an almost
governmental
obligations?" asked Senator Johnson.
unreasonable strain on the banks.
"That is putting it in rather a harsh way, Senator, and I would like
"And I think a man who hoards money and makes the problem of the
to avoid answering it in that way," replied Mr. Kahn,
banks still greater ought to be publicly denounced in these times.
"It is putting it in a plain way," persisted Senator Johnson.
"I think we all ought to stand together to prevent the whole country
"It is a situation that does not confront us, and I would like to
avoid
from being unduly damaged by the extraordinary emergency which, I
giving a hypothetical answer to a hypothetical situation," parried
the
am wholly confident, can be and will be overcome, but which, for the time
witness.
with,
ought
and
to
no
dealing
debtor
of
capable
being, no one individual Is
Best for Us Held Best for World.
alone."
with
deal
upon
to
called
be
Questioned concerning France's debt to us, Mr. Kahn said he saw no
"Moratorium Avoided Catastrophe."
lack of that country's capacity to pay.
"Is It your opinion that Germany can ever pay off the enormous amount
"Then you do not advocate any cancellation of the debt that France
or money she has borrowed for her government, her municipalities, and her owes to us, do you?" asked Senator Reed,
Industries?" Mr. Kahn was asked.
Never Advocated Cancellation of War Debts.
"In the long run, Senator, I think almost anything can be done." he
"I have never advocated the cancellation of the
answered. "Germany has demonstrated in the past such an extraordinary
debt." replied Mr.
capacity for hard work, for mastery of difficulty, and for self-control, that, Kahn. "But I have advocated in public that, if ever a nation is entitled
unless she is driven to a point where her nerves crack, to the point of help- to get its money back, the United States was entitled to get its war debts
back. We went into the war and we did our full share, God knows! We
lessness, I think she will ultimately pay her debts.
"By paying her debts. I mean the private debts, the municipal debts, asked for none of the spoils, and we got what we asked for—none." He
the government debts that the government owes to private Individuals. continued:
"It seems to me that In plain justice, in ethics, we have not a thing
"I do not wish to be understood as making any forecast in the way of
reparations, for that opens up an entirely different chapter; that opens to apologize for in saying we want our debts paid, for which we did our
full share,
up, of course, the chapter of the allied debts to America."
DEC. 26 19311
FINANCIAL CHRONICLE
"But I do not think that it is a matter of justice; it is a matter of expediency, and I think it should be dealt with as a matter of expediency.
It is what at the moment Is the most expedient or the best thing for America
.to do.
"In that I put America first. What is best for America to do is best
for the world to do. because, at the present juncture, if ever, the repercussion of the misery of the situation of one upon the other is strong and
Inevitable; the repercussion of the prosperity of one upon the other is
strong and inevitable.
Avoids Policital Question.
"I think what we should do, inasmuch as the question has been asked,
and if I may say so without impertinence," Mr. Kahn went on, "Is to
ascertain most diligently in what way will maintaining the justice and
the right of our case—and without apoligizing for what we claim and are
rightly entitled to—in what way can we best serve that interest, which is
a world interest, and our own.
•"That is a very large question. I am not prepared to argue that. It
involves consideration not merely of a financial but of a political nature.
"It necessarily and rightly belongs to statesmanship, and, with all
due respect, Senator. I do not believe I should be called upon to answer
it categorically, because it is beyond the province of a banker to answer
categorically so many elements which are not of a financial nature."
Q.—Now, you say you see no evidence of a realization in Europe that we
have, in effect, cancelled all of our war debts in France? A.—Yes,sir.
lp Q.—And that what we are claiming from France now is merely the
repayment, in effect, of those advances we made after the fighting was
over—to enable her to buy foodstuffs and materials which constitute her
economic life? A.—That is true, but they do not know it.
A "Good Word" for England.
"Now, Mr. Kahn, as a banker, do you think it is practically expedient
or necessary for us to make any further surrender to France, in view of
her capacity to pay, in order to buy her to do the prudent and wise thing
toward Germany? Do you think that is necessary?"
"Senator," Mr. Kahn replied, "may I not include in my answer to that
the general statement that I have made: that, from the point of view of
adjustment, I think we have a 100% case—a 200% case.
"I think we have been generous beyond precedent, almost."
Discussing the case of England, Mr. Kahn said that for that country,
"I would like to say a good word, because I think they were the first to
step up to the captain's desk and say: 'We are under obligations. Give us
the best terms you can.'
"I would like to say that, as I think England is entitled to have a good
word said for her," he went on.
"And, apart from that, I think, it is purely a question of the study of
What is expedient for us to do, leaving sentiment or abstract justice or
even moral obligation behind us for the time being, and find out: How
can the world, including America, best get out of the mess that we are
In now?
"The European formula is very simple to get out of the mess, and that
is by laying it on America," a Senator said. "You do not subscribe to
that, do you?"
"I do not subscribe to that, Senator." answered Mr. Kahn. "If it
were possible to find a way by which all these reparations and war debts,
which hang around the neck of the world like a millstone, could be taken
out and sunk in the ocean, I should welcome it.
"But there is no such way that I can devise or have ever been able to
devise," he continued.
"And, inasmuch as there is no such way, and I do not believe any one
has suggested such a way, the next best thing is—very calmly and with
great self-control, and great self-restraint, and with a little swearing and
cussing beneath our breath—to try to evolve something which will come
as near being a helpful consideration and solution of an extraordinary
situation where almost everybody's nerves are on edge and some are nearly
frazzled. That, I am bound to say, is not a financial problem."
"And you do not think a temporary emergency justifies a permanent
reduction of those debts?"
"I do not," Mr. Kahn declared.
1243
"And yet the governments of these countries that appear to have unlimited wealth to spend upon armies and navies that are working with
might and main for the purpose of making themselves invincible for the
coming struggle, which is being so freely prophesied, complain of the
burden—the very slight burden, as I will show—which they say is involved
in paying a small part of the indebtedness that they owe to our country
for loans made in war time, and for a considerable period after the war
was over.
"And even among ourselves there has been a persistent demand in
some quarters that those war debts shall be canceled.
"Uncle Sam is the world's greatest Santa Claus. The net cost of the
war to the United States, counting only the cost in dollars and cents, was
Placed by the Treasury Department at approximately $40.000,000,000.
"These debts have been so greatly reduced that France is to pay only
47 cents on the dollar and Italy 25 cents. And yet Uncle Sam is accused
by some nations of being a shylock.
"The great question before the American people today is 'Shall we
relieve the taxpayers of the European nations from the burden, slight as
It is, in order to add to the much greater burden that the American taxpayers are already called upon to endure?"
"Is it not time that we began to think less of helping the thankless and
more of helping our own folks? The American worker does not ask for
charity; he asks for work. But how can we provide it if we compelled to
charity; he asks for work. But how can we provide it if we are compelled
to break our backs paying the debts that European governments owe us
and have agreed to pay?"
Senator Davis returned to Washington tonight.
England Using Little, if Any, of Federal Reserve
Credit—United States System Cuts Holdings of
Bills Payable in Foreign Currencies in November.
From the New York "Herald Tribune" of Dec. 19 we take
the following:
The Bank of England passed another month end without having to use
any,or at least no substantial amount,of its credit with the Federal Reserve.
This month's Federal Reserve Board "Bulletin" shows that the System
owned $33,386,000 of bills payable in foreign currencies as of Nov. 30,
as against $33,501,000 at the end of October, a reduction of $115.000.
The use being made by the Bank of England of its Federal Reserve
credit, which now amounts to $75,000,000, is reflected in the System's
foreign currency bill holdings. The figure of 833.386,000 now reported
by the Federal is large enough to account for the $25,000,000 credit to the
Reichsbank, with $8.386,000 besides. If the System's credits to Austria
and Hungary are reported in the foreign bill holdings, then the Bank of
England, it was supposed, was not using any of its credit here; but if the
Austrian and Hungarian credits are included under the item due from
foreign banks in the System's statement (which is possible, since the credits
were advanced through the Bank for International Settlements), then the
Bank of England was using approximately $8,000,000 of its Federal Reserve
credit.
October a decline of $15,503.000 occurred in the Federal's foreign
bills because of repayments by the Bank of England. In September the
Bank of England paid off $96.411,000 of its credit, which, when originally
extended on Aug. 1, amounted to $125.000,000. When this credit matured
on Oct. 31, the maximum amount was reduced to $75,000,000 and extended for three months.
The Bank of England also has a $75,000,000 credit with the Bank of
France. There have been reports that the Bank of England would repay
this debt at the end of January by means of a gold shipment, since it apparently has more difficulty in obtaining francs than dollars. In connection with the repayment of $100,000,000 of its credits on Oct. 31 the Bank
of England shipped .C15,000,000 of gold.
Ontario
Cuts Salaries—Reductions for Provincial
Stimson's Aides Prepare Data.
Employees Range from 2% to 20%.
Mr. Kahn's testimony was not completed when the Committee adUnited Press advices as follows from Toronto are taken
journed to-day and he will reappear on Jan. 4. It was indicated that
from the "Wall Street Journal" of Dec. 21:
the hearings may last for a considerable time next month.
Several other bankers were on hand to-day in response to summonses,
Provincial employees have received salary cuts ranging from 2% to 20%
were
not
called
to
they
testify
and will not be heard until Mr. Kahn's W. H. Price, acting prime minister, said the cuts, which affected even
but
testimony has been concluded.
employees earning $1,000, were made because of the unfavorable exchange
Secretary Stimson, asked to-day about the plans of the Committee to situation.
obtain information from him bearing upon the State Department's apThe reductions will be effective until Oct. 1 1932, with renewal optional
proval or rejection of foreign loans in recent years, said he had been asked at that time.
to produce certain papers, but had not yet been asked to appear personally
before the Committee. The Department, he added, was preparing the No Foundation for European Reports That United
information for the Committee.
States Will Go Off Gold Standard.
Senator Smoot,the Committee Chairman,plans to call Secretary Stimson,
at the request of Democratic members, when the Committee reassembles
From its Washington correspondent on Dec. 16 the New
after the holiday recess. Senator Borah of Idaho to-day criticized the
York "Journal of Commerce" reported the following:
amount charged by syndicates to float foreign loans, but other members
There is not the slightest foundation for reports circulated in European
of the Committee hold that the "spread" of from 2 to 6% charged is not
capitals that the United States will be off the gold standard in two months,
a large percentage to be divided among the syndicated guarantors of the
it
was said at the office of Undersecretary of the Treasury Ogden L. Mills.
loans and the sales organizations.
These reports were held by some officials to be a continuation of the
anti-dollar propaganda noted in recent months.
The United States, it was pointed out, is in an exceptionally strong
Senator Davis Sees America as World's Santa—Asks if position and could gain nothing from embargoing gold exports. The
It Is Not Time to Stop "Helping the Thankless"— monetary gold stock Dec.9was$4,437,000.000,a decrease of but$139,000.000
Points to War Debts—Europe Pours Huge Sums from the same date a year ago, despite the heavy outward movement which
followed the gold embargo in London.
Into Arms Yet Balks at Paying Us, He Declares.
During recent weeks there has been an inflow of gold. The Federal
Characterizing this country as "the world's greatest Santa Reserve ratio Dec. 9 was 66.1%, compared with 65.6% the week before.
Claus" and recalling that some have accused us of being
"a Shylock," Senator James J. Davis declared regretfully Adverse Exchange Rate on Canadian Dollar to Cost
Toronto $1,100,000 on Jan. 1.
at Sharon, Pa. on Dec. 20 that the world was approaching
Christmas Day in a spirit far removed from the teachings
From Toronto Dec. 12 Associated Press dispatches said:
The adverse exchange rate on the Canadian dollar in the United States
of Christ. We quote from a Sharon dispatch to the New
will cost the City of Toronto $1,100,000 on Jan. 1. The Finance ComYork "Times," which also had the following to say:
missioner, George Wilson, will request the City Council on Monday to report
"Is It not time," he asked, "that we began to think less of helping the that amount to meet the exchange in New York.
thankless and more of helping our own folks."
Here for a brief visit with his father, David J. Davis, the Senator spoke
on world armaments and war debts before members of the men's Bible
class of the First Methodist Episcopal Church.
"There is war and rumors of war," Senator Davis stated. "Most of
the so-called civilized and Christian nations are armed to the teeth, and
from 80 to 85% of all money raised by taxation in these lands is being
spent for the purpose of war.
The Finance Commissioner made a proposal to Ottawa that the Dominion
Government provide for the shipment of gold to New York so that there
would be no loss in exchange.
.1 have had a good deal of correspondence with Dominion
officials
upon this matter," Mr. Wilson said, "but the Government finally made
It clear they did not intend to provide gold for the municipalities for obligations in New York. So far as I can gather, the Dominion
requires its
gold to take care of its own obligations.'!
4244
FINANCIAL CHRONICLE
Premier Bennett of Canada Says There Has Been No
Discussion in Canada on Question of Abandoning
Gold Standard.
Associated Press accounts from Ottawa Dec. 14 stated:
R. B. Bennett, Prime Minister of Canada, said to-day regarding rumors
that Canada would go off the gold standard:
"You can say authoritatively no action has been taken in any manner,
shape or form, nor has the matter been discussed since my return."
Mr. Bennett spoke after a meeting of the Cabinet Council. Ile returned
yesterday from a three-week trip to England.
[vol._
133.
Urges Larger Gold Output.
An Increase of gold production in this Province was urged this week by
Charles McCrea, Minister of Mines in Ontario, in an address at the Albany
Club.
"Why should not our efforts to dig more gold be intensified?" Mr.
McCrea said. "There are great areas to be unearthed. Present conditions
offer great opportunity for the production of gold, to employ our people,
to furnish markets for farmers and manufacturers, to buttress our national
Indebtedness and to give stability to Canada and Canada's currency.
"We are especially fortunate in being gold producers. Were we not, we
would have to purchase gold from other countries, paying premiums for
It. In our prpduction of gold we employ 7,500 men and pay them wages
of more than $12,000,000 with an additional 813,000,000 annually for
supplies and equipment. We pay to Canadian shareholders the dividends
from the earnings of the mines, and we pay our own Canadian people the
premiums on the gold to add to the circulation and buying power of our
depreciating currency."
Loan Bill to Aid French Farmers—Government Preparing for Advances Which Are to Fall Due in
30 Years.
The following copyright advices from Paris Dec. 12 are French Metal Reserves—Minister of Finance Scores
from the New York "Evening Post":
Abuse of Gold Standard—Bank to Defend Holdings.
Somewhat hastily the Government is preparing a bill designed for the
Paris advices to the "Wall Street Journal" of Dec. 17 said:
relief of the National Farmers Syndicate, which, affected by the fall in
prices for agricultural commodities, has been unable to repay advances
previously made and now due. The sum involved, about 50,000,000 francs,
Is not considered great, but it is regarded as indispensable that confidence
be restored.
The bill provides for an advance of 100,000,000 francs redeemable in
30 years. The Minister of Finance will control the activities of the syndicate. which are regarded as having been somewhat imprudent.
Paris Sees Evidence of Sterling Support—Theory that
London Is Withdrawing Capital from America.
Under date of Dec. 11, a wireless message from Paris to
the New York "Times" said:
The strong resistance shown by sterling this week to the downward
tendency was due apparently to British intervention in support of the
market. Purchases of sterling here seemed to be offset by sales of dollars,
which would account for the week's movement of French and American
exchange. On the supposition that London has been supporting exchange
through withdrawing capital from America,such action is considered here as
conducive to firmness in sterling because great amounts of English money
were certainly sent abroad early in the autumn because of fears inspired by
the Labor Government.
If this money were to be brought home, conditions might be created
similar to those existing in France during 1926. The British market
seems to have great confidence that the deflation of sterling will bring about
economic recovery in that country; but as Paris sees it, the effect of depreciated sterling is probably exaggerated. No one here is surprised that
economic conditions in England do not yet seem much improved. The
British Government is also evidently encountering great difficulties in agreeing on the details of their own new financial policy. For these and other
reasons French financial circles are reserving opinion concerning the future
of sterling.
France Increases Import Duties on Shoes.
The French import duties on all types of shoes were increased by a law published in the French "Journal Officiel"
for Nov.29 1931, according to a cablegram from Commercial
Attache Fayette Allport, Paris. Under date of Dec. 2 the
Department likewise said:
The law changes the former ad valorem rates of duty on shoes to specific
rates, but provides that the new specific duties cannot amount to less than
25% ad valorem in the minimum tariff and 50% ad valorem in the general
tariff. The former duties ranged from 12% to 18% ad valorem in the
minimum tariff, and from 48% to 72% ad valorem in the general tariff.
Imports of shoes from the United States were formerly dutiable at intermediate rates ranging from 18% to 27% ad valorem.
Changes were also made in the French tariff classifications on shoes.
Drop in Ontario Gold Output in November—Eleven
Months Figures Exceed Those for Year 1930.
Canadian Press advices from Toronto, Ont., Dec. 18,
stated:
Ontario's gold mines produced in November bullion to the value of
$3,666,270, or $81,830 less than the $3,748,100 reported for October.
September was the year's record month, with $3,850,284.
For the 11 months ended on Nov. 30 Ontario's mines report a gold production of 538,893,993, against $35.518,862 in all of 1930.
Kirkland Lake mines in November produced gold to the value of $1,949,816, against $1,981,189 in October. Porcupine mines at $1,579,296 showed
a drop of $91,739 from the previous month.
Considerable comment has been evoked through the speech made by
Finance Minister Flandin in the debate on the Bank of France bill in which
he referred to the abuse of the gold standard.
M. Flandin disclaimed any idolatry of gold on the part of France but
declared that the Bank must be enabled to defend its metallic reserve
against eventual retirement of foreign capital which has taken refuge in
France. This declaration is taken as indication that the Bank of France
intends to dispose of its foreign balances before selling gold. M. Flandin
condemned the "Anglo-Saron" devices of the gold exchange standard
and open market operations as being the origin of most of the post war
difficulties by preventing the unhampered and natural operations of the
gold standard.
"In the monetary world," he said, "almost all the innovations which we
have known since the war had simply the object of dissimulating reality but
reality is now avenging itself. To-day, the most urgent task is to reconstitute a monetary system which will endure. For us, that system is the
gold standard.
Mexican Gold and Silver Tax.
In its issue of Dec. 21 the "Wall Street Journal" carried
the following item from Mexico City:
Regulations governing percentages of values of gold and silver that the
Federal Government will collect as taxes on production of these metals
during next year, follow as announced by Minister of Finance:
Gold: as metal, 10.5%; inconcentrates, 10%; imprecipitates or impure or
mixed in bars, 9.25%; and refined, 9%, when its official worth a kilo is
1,333.33 pesos a kilo. Silver: as metal, 7.5%; inconcentrates. 7%; imprecipitates or in bars. 2.75%, and refined. 2.50%, when its official value is
26.65 pesos a kilo.
Attack on Gold Basis Denied by Prime Minister MacDonald of Great Britain—Calls Letter Saying He
Held Britain's Return Unlikely an "Unscrupulous
Invention."
Prime Minister MacDonald on Dec. 21, at Lossiemouth,
Scotland, branded as "unscrupulous invention" the contents
of a letter said to be circulating in financial circles on the
Continent and in New York, outlining what it described
as his views regarding the question of Britain's return to the
gold standard. Associated Press accounts added:
A copy of the letter which was sent to Mr. MacDonald and about which
considerable mystery hangs, appears to have been written by an unidentified observer of the British situation, whose nationality has not been revealed. It attributes to the Prime Minister statements he is said to have
made to "a Lord" in a conversation regarding the sterling situation.
It quotes Mr. MacDonald's views as follows:
"It is absolutely necessary that the budget be balanced satisfactorily
for at least three years and that the balance of trade turn in favor of England. Whether England would ever return to the gold standard he could
not say, but taking into consideration the present feeling within the Cabinet
and within the country, he as Prime Minister did not think it likely."
The letter said that Mr. MacDonald was asked by the Lord about the
Government's intentions with regard to the gold standard and that he
replied that in no circumstances would the Government consider stabilization before 1934.
"There's not a word of truth in it," the Prime Minister said to-day.
"The whole thing is an invention. It is one of several attempts made recently to create prejudice against the pound and to damage British credit
abroad. The opinions attributed to me have not even a shodow of likeness
to the opinions which I hold."
Paris Coins "Banksters," As Designation for United
States Financiers.
Gold Mines Paying More to Canadians—Dividends and The following (copyright) from Paris Dec. 21 is from the
Bonuses Rise $2,487,598 to $14,821,208 for This New York "Evening Post":
Year—Larger Gold Output Urged.
It probably would shock American financiers who are differing with the
Dividends and bonuses declared by Canadian gold mining financiers of France as to America's German credits to know the word that
Is being applied to them in some circles of Paris banking.
companies in 1931 exceed those declared in 1930 by $2,They are being called "banksters." This is supposed to be a neat and
487,598,it is calculated from the reports of those corporations telling combination of "banker" and "gangster."
Editorial comment in the "Post" of Dec. 22 follows:
said a Toronto dispatch Dec. 19 to the New York "Times,"
"Bankster."
which likewise stated:
Our Paris dispatches say that some financiers in that charming city have
The amount paid this year is $14,821,208, compared with $12,333,610
last year. These mines have paid in dividends to date $133,834,133. coined the above word for American bankers who now do not see eye to eye
with
them in the matter of German payments. The word is supposed to be
Bonuses this year amount to $2,360,357.
The payments this year were swollen by $1,800,000 additional from "a neat combination of 'banker' and 'gangster.'" As an abstract term of
Lake Shore, $65,990 additional from Sylvanite and 8825,000 distributed by satire it has its elements of philological strength. But we might warn the
financial wits of Paris that such words are dangerous. They do not conduce
Wright Hargreaves, which paid no dividends in 1930.
Gold bullion of approximate value of $40,000 monthly continues to be to National goodwill,something that may be of real importance to imperious
France. who grows more and more isolated as the weeks go on. They do
Anderson,
C.
according
to
T.
Manitoba
Mines,
produced in the Central
Vice-President, on his return from Boston where a directors' meeting was not back up the objectives of the American visit of the suave M. Laval.
held. Ore is being taken out of three shafts and values are running fairly The spiritual ancestor of "bankster" is "Uncle Shylock." And we do not
even. Operations were held up for several days in October as a result of a know of any four syllables in ow' language that have cost Europe more
In American than has that same bitter jest "Uncle Shylock."
fire at the mill but repairs were made.
Mac. 26 1931.]
FINANCIAL CHRONICLE
4245
by cablegram the figures of its statement of Sept. 30 193l,.
Paris Bourse Closed Dec. 25 and 26.
as agreed to by the ordinary general meeting of Dee. 12
Christmas
Day and will also be
The Paris Bourse closed
1931. The figures follow:
closed to-day, Dec. 26.
Assets—
Bank of France and French Ship Bills Adopted by
France—Senate Votes $100,000,000 Credit to Offset
Pound Sterling Losses—Steamer Line Restricted—
Deputies Grant $12,000,000 Loan but Insist on
Government Control.
The following Paris cablegram Dec. 23 is from the New
York "Times":
In both Houses of Parliament to-day the Government managed to work
its way through the dangers besetting it, permitting Premier Laval to let
It be known that he would read the decree of closure to-morrow to this
particularly stormy extraordinary session. However, the Government
has come through only after compromising on Important projects.
The Chamber passed to-day the measure extending a credit of $12,000,000
to the Compagnie Generale Transatlantique—the French Line—but at
the price of taking control of the company out of private hands and putting
it into the Government's. The Senate, in turn, passed the much-discussed
measure by which the Bank of France's losses of $100,000,000 due to the
fall of the British pound will be covered by Government aid, but its financial
commission forced Messrs. Flandin and Moret to agree to put a heavier
burden of repayment on the Bank of France than had been proposed.
Although some delicate questions remain to come up to-morrow, and in
the present state of tension anything is likely to happen, it is now taken
for granted that M. Laval's government will survive into the new year
at least.
The Bank of France bill caused more anxiety, not only to the Government but to the Bourse than any other measure before this session. According
to tradition the bank has to publish its year's balance sheet to-morrow.
Considering the poor showing it would make if it had to take a loss of
2,500.090,000 francs because of the drop in sterling exchange, there was
good cause for worry. Bank of France shares have been dropping steadily
on the Bourse, having lost 215 francs yesterday. To-day's news of the
Senate Committee's action led to their regaining 160.
The measure provides that the State shall give the Bank of France
a Treasury bond equal to the deficit caused by the drop in sterling. The
Government sinking fund then will give in exchange for that bond other
negotiable bonds. Repayment will be made partly by a Government
budgetary annuity and partly by the Bank of France itself.
The Senate Finance Committee's opposition resulted in the bank agreeing to pay an initial instalment of 610,000,000 instead of $8,000,000.
The Senate vote to-night brought a victory of 183 to 67. The Chamber's
passage of the French Line credit by a vote of 333 to 221 came only after
a radical change in the Government's original plans, and even then the
bill was debated heatedly until late into the night. The result again
gives striking evidence of how the French Government has been forced
to take over the functions of private business. The extent of State control is beginning to assume a resemblance to war times.
The measure, as approved, provides that the Government shall have a
majority on the board of directors of the French Line as well as a majority
of shares of the company. Through the entire Administration, in fact,
the State will have the right to designate "half plus one" of the administrators. Likewise, the company must furnish a statement of its receipts
and expenditures every quarter and submit every project costing more
than $20,000 to the Ministry of Merchant Marine.
Before it adjourned for toe night the Chamber sought to have its say
regarding the Bank of France bill also, but Mr. Flandin asserted the change
made in the Senate was voluntarily made by the bank through a letter
leaving the text of the measure unaltered. When Leon Blum, Socialist,
insisted on the lower House voting. Premier Laval put the matter of whether
it should go to a vote of confidence, winning by 320 to 258.
Belgium Not To Abandon Gold.
From Brussels Dec. 23, Associated Press advices stated:
Cash in hand and with Nederlandsche Bank
Balances on call with Dutch Banks
With banks and bankers abroad
Fl.20,985.297.3)
Fl. 1.009.161.0
18.968,761.92
19,977,923.61
Treasury bills of the Kingdom of the Netherlands
9,920.5061111
Bills receivable
894.638.0
258.8260
Coupons and foreign money
4,970,152.8g
Loans to banks and bankers abroad
2,917,3682g
Loans against Stock Exchange securities at call and short notice
Fl.11,435,601.48
Debtors—Against shipments of merchandise
13,650,349.53
Other advances
25.0118,861.47S
Fl. 1,447,421.93
Guaranties
2,827,733.73
1,237,509.90•
300,000.90.
Investments and participations in syndicates
Participations in the N. V. Internationale Crediet Co., Amsterdam_
Premises Heerengrucht 448-452
Fl.89,375,792.M
Ltabgitles—
Fl. 15.000.000 00'
Capital
7.600,000.0f)
Reserve fund
62,961.357.56
Deposits and current accounts
1,335,88743.
Acceptances
1,060.014.15.
Reimbursement credits with foreign correspondents
FL 1,447,421.93
Guaranties
1,620.552.7
Undivided prorta
FL 89.375,792.09.
Gross profits amount to
Deducting expenses
Leaving net profits, including carry over from 1930.of
Fl. 3,251,922.38
1,762,188.6)
1.520.552.77
The further information in the cablegram says:
Of this amount F1.1,000,000 will be used for strengthening the reservefor contingencies, while the remainder F1.520,552.77 will be carried forward on new account. The board of managers reports that investments.
and participations are taken at an extremely careful valuation, in no case
above present quotations. Ample reservation is made before hand fordoubtful debts. The reservation of an additional F1.1,000.000 is to beconsidered as a further measure of precaution. The company has thought,
it advisable not to pay a dividend considering the preseut .extraorclinary
world situation, although such a.-distribution would travel:leen perfectly
warranted by the results.
Adolf Kohn of this city, in making the figures available,
said:
The many friends of Messrs. de Bary among local banking circles will,"
be gratified to see that the Dutch banking house has managed, also in thisyear, to maintain its traditional liquidity, although deposits have been
reduced by about Fl. 30 millions and outstanding acceptances from Fl. 24
millions to Fl. 1,300.000. Total liabilities on Sept. 30, amounting to.
about Fl. 65 millions, are covered by liquid means of the first rank by
more than 80%. The managers expect that the strong position of the,
company will enable them also in future to devote their energies to the
cultivation of the international banking business as heretofore.
Bulgaria to Force Loan—High Officials and Wealthy
Persons Will Be Compelled to Subscribe.
Bulgaria is preparing to join the ranks of nations with.
financial restrictions because of the economic depression,
said a cablegram Dec. 20 from Sofia to the New York
"Times", which also said:
The Finance Ministry is preparing restrictive measures for next year,
including a forced loan to which high officials and private persons enjoyinglarge incomes will be obliged to subscribe.
Importations of luxuries will be prohibited to prevent a decrease I.
foreign exchange reserves.
Baron Maurice Houtart, the Finance Minister, said to-day the Belgian
cabinet never had considered and did not intend to consider devalorizadon of the Belgian franc. The gold standard was and must be the beginning and end of Belgium's financial policy, he said.
Hungarian Government Declares Moratorium on.
Foreign Debts—League of Nations Loan to Be Paid'
in Foreign Currency—American Investments in.
Hungary.
Belgian Chamber of Deputies Authorizes Negotiations
What is termed "a transfer suspension on foreign debts"
With France and Holland for Organization of was declared on Dec. 22 at Budapest by the Hungarian,
Economic Union—Prague in Receptive Mood.
Government on foreign debts, effective Dec. 22, Associated
From the New York "Times" we take the following Press accounts from Budapest on Dec. 22 stated:
Brussels cablegram Dec. 10:
An official statement explained the step was necessary because thy
The Belgian Chamber of Deputies today adopted by a slim majority a
resolution authorizing the government to begin negotiations at once with
France and Holland for organization of an economic union of these three
Continental countries which still adhere to the gold standard.
foreign trade balance was insufficient to provide a surplus of foreign currencies acceptable to Hungary's creditors.
It had been evident for some time, the Government statement said.
that the Nation would not have the means to cover the service of all its
The same paper reported the following from Prague Dec.10: foreign obligations much longer. Hungary's foreign trade brings in prin—
cipally the currencies of nearby nations, which are not acceptable to Hue-Denying that Czechoslovakia was a vassal of France, Foreign
Minister
Bones in a statement to the Senate Budget Committee today
gary's creditors.
again intimated that the nation was willing to co-operate in promoting
A decree Issued by Finance Minister Friedrich Koranyi announced,
Central European economic solidarity. He hinted that Czechoslovakia would
that all available foreign currencies in the Nation would be used first for
even be
willing to take the initiative but added that, if there were any danger
service on the 1924 reconstruction loan, amounting to approximately
that her motives might be misinterpreted, she could afford to
$4,000.000. If any remained, the Finance Minister said, it would be usedwait.
His statement was rendered all the more important by the
payment of other debts.
fact that in
an agrarian conference of representatives of Bulgaria,
The Government statement explained that the moratorium had be
Yugoslatia, Rumania, Hungary, Poland and Czechoslovakia opened today in
deterred as long as possible at the request of foreign representatives.
Sofia in
the presence of representatives of the League of Nations
To prevent a halt in commerce the National Bank will put at the disinternational
agrarian board.
posal of Hungarian citizens sums needed to carry on and also will cover
Dr. Benes said Czechoslovakia, in discussing treaties with
the service on the credit-freezing agreements.
Hungary and
other Balkan States, had not acted merely under France's
The Government said the measure was in the interest of Hungary and
pressure, but
since 1927 had vainly tried to cultivate better commercial
her creditors, that the pengo (Hungarian currency) would be covered.
relations with
Germany and Austria.
by a gold reserve and foreign currency stock, as stipulated by law, andthat it was the Government's duty to see to it that public and private obligations were fulfilled in perigees if not in gold.
Sept. 30 Figures of Handel-Maatschappij H. Albert
From the New York "Herald Tribune" of Dec. 23 we takede Bary & Co. of Amsterdam.
the following:
The Handel-Maatschappij H. Albert de Bary &
Budapest Decree Received Here.
Co.,
A copy Of the decree announced by Finance Minister Friedrich Koranyi,
N. V, Amsterdam, closely connected with the Deutsche
here yesterday by George de Gbika, Royal Hungarian
Consu."1
Bank und Disconto-Gesellschaft, Berlin, recently reported received
General, follows:
4246
PINANCIAL CHRONICLE
• "Owing to the exceptional decline in the price of the principal Hungarian
exports and the consequent difficulty in present circumstances of obtaining
sufficient exchange for foreign debt remittances, the Hungarian Government is under the necessity of suspending the payment abroad in foreign
currencies with certain exceptions of the Hungarian financial obligations,
public and private, as from Dec. 23 1931.
,"The Hungarian Government accordingly proposes to apply the foreign
currency at its disposal in the first place to the service of the .73i% State
loan of the Kingdom of Hungary 1924, and then, so far as the supply of
foreign exchange permits, to the secured relief loan, the interest or discount
on the secured treasury bills, the service payment of the Caisse Commune,
the Austro-Hungarian State Ry., the Danube-Save-Adriatic By., the payments to be made under the London protocol of Aug. 11 1931, the service
payments of the pre-war loans of the City of Budapest under the Ostende
agreement of Aug. 14 1925, and for the purpose of preserving the commerce
of the country.
"The Hungarian Government will authorize the National Bank of Hungary to sell to Hungarian nationals foreign exchange for the purpose of
meeting interest or discount and commission on short-term debts to bankers
and others, and of giving effect to appropriate standstill arrangements which
the Government intends to propose to short-term creditors in foreign currencies for a period of six months.
Holders of all State or State guaranteed loans other than loans payable in
pengoes or of the loans of Hungarian public authorities or other loans
excluding short-term loans the service of which is not fully met in foreign
currencies are called upon pending final settlement to postpone their claims
for the next 12 months on the deposit inpengoes being made as mentioned
In so far as these pengo deposits earn interest, such interest, less
below.
the expenses incidental to their administration, will be applied for the
benefit of the creditors.
"The Hungarian Government and the National Bank of Hungary will
guarantee that for the aforementioned period more favorable arrangements
will not be made in any particular cases referred to in the preceding paragraph. In the mean time, the full service of all such loans will be collected
in pengoes at the rate quoted the day previously by the National Bank
Hunof Hungary and paid Into a blocked account at the National Bank of
gary for the benefit of the bondholders. This account will be administered
by the National Bank in agreement with the adviser at the National Bank,
•Who will consult with any representative whom the creditors as a body may
nominate on all matters concerning the management of the account.
"The Hungarian Qovernment will request the foreign governments concerned to accept temporarily similar arrangements as regards the outstandpublic
ing clearing office payments. In the event ofany monopolies or other
will be apmete being disposed of abroad, the proceeds of such disposal
plied to lightening Hungary's existing burden of external Indebtedness."
From Washington on Dec. 22 advices to the New York
"Times" said:
American investments and credits in Hungary are estimated to total
$170,000,000, including $134,400,000 of governmental and corporate securities, nearly all of which are in private hands. American investors, acteirdIng to experts, will probably lose between $12,000,000 and $14,000,000
in the coming year as a result of the embargo.
Hungarian Envoy Denies Gold Ban Rumor.
The New York "Evening Post" published the following
from Berlin Dec. 19 (copyright):
Rumors current in European capitals that the Hungarian Government
intended to abandon the gold standard were denied to-day by the Hungarian
Ambassador to Berlin.
in
The Ambassador declared that he had telephoned to Premier Karolyi
Budapest and had been informed that the rumors were false that the Governthe
ment had pledged its word not to abandon the gold standard, and that
.pledge would not be broken.
•
f VAT,
133.
discount market. When it was discovered last 'rummer That some German
acceptances held here were finance bills and that part of elle paper actnally
had found its way into the Reserve banks, the disclosure amounted fci a
mild scandal in the money market.
Deal Reflected in Acceptance Market.
The bills were withdrawn from the market, as they matured and the
credit which was being advanced through them to German banks was
converted into simple cash advances. This was the explanatiov in large
part of the drop of $155,237,795 in the volume of outstanding dollar acceptances based on goods stored in or shipped between foreign countries
In July, August and September.
Accepting banks here excused the German banks on the ground or their
unfamiliarity with this market's requirements, but determined in future
to demand more rigid proof of the documentary character of bills drawn.
They feel that the German banks should replace objectionable credits
so far as possible with bills eligible for rediscount at the Federal Reserve.
Where it is not possible to supply eligible bills, they think the German
debtors should offer some security for their credits and should pay a higher
rate of Interest than is charged on eligible credits.
This is the origin of the American demand for the deposit of security
against unsecured credits now in this market. That security, it has been
suggested, could take the form of commercial paper, stocks, bonds or
other instruments which would allow the creditor banks to lay hands on.
some assets in the event that the credits were not paid. An arrangement of this character would not involve sending the security here, but
might be worked out through the deposit of proper collateral in Germany
with the Reichsbank, or in a neutral country with some other institution,
such as the Bank for International Settlements.
Counter Proposal from Germany.
What is viewed as an alternative proposal was described' in dispatches
from Berlin late last week referring to the concentration of German noncommercial short-term debts in a trust company, which, would issue in
exchange bonds carrying 5% interest and maturing in equal annual installments over ten years.
This is similar to the plans previously advanced by Emile Francqui
of Belgium and Hermann Schmitz, head of the German dye trust. Bankers here originally objected to such a plan on the ground that the credits
In question were essentially short-term in nature, were meant to finance
current trade operations and were to revolve in the process of prompt
liquidation on maturity, offset by the creation of new bills arising out of
new but similar commercial transactions.
Reports from Berlin last week describing as "severe" the terms as presented by Mr. Wiggin upon which American banks are prepared to enter
into a new agreement for maintaining short-term credits to Germany, after
the expiration of the current "stillhaltung" agreement on Feb. 29, elicited
little comment from bankers here beyond the remark of one distinguished
financier, who said he hoped the reports were correct.
Leading bankers here have refused to share the popular alarm for the
safety of their credits to Germany, but they are adopting a somewhat
grim attitude in their discussions of the German debt problem. The opinion exists in some quarters that undue difficulties have been interposed
in the matter of Germany's private debts by the desire of the German
authorities on the one hand to present a picture of complete destitution
and the desire of the Allied creditors for the account of reparations on the
other to prove Germany's capacity to continue reparations payments.
The private credits, from the viewpoint of the bankers, were extended
along sound lines and should automatically liquidate themselves if due
time is given. The attempt to lump them together with reparations as
part of a single problem is, accordingly, resented.
Germany Reported Liquidating Commercial Obligations to American Banks—Chase National Bank
Reduces Commitments.
In its Dec. 21 issue the "Wall Street Journal" said:
Germany has been steadily liquidating her commercial obligations to
American banks. The repayment of such credits as a matter of fact, has
taken place almost regularly. Within the last three months an estimate
by German bankers is that such obligations have been liquidated to the
extent of 16% in London and in New York.
For the most part, the German obligations are self-liquidating, and on
the whole, they are adequately secured, either by cash or securities quoted
on exchange other than in Germany, while a part is guaranteed by the
German Government and German industry. A small portion is represented by so-called "trade acceptances," or one-name paper, but even this
Is for the account of high grade German concerns.
The Chase National Bank, which is one of the biggest lenders, is known
to have reduced its commitments substantially in recent weeks. At predealt with the details of sent, such commitments of the Chase in Germany represent less than 5%
In another part of the same dispatch which
appeared.
of the bank's total loans and investments, and about 3% of total resources.
Mr. Mitchell's testimony, the correct figure
At no time have they exceeded $85,000,000. whereas the current figure of
Complain—Borrowers less than $70,000,000, marks a drastic reduction from the peak.
- German Bond Holdings—Those of the National City
Bank $1,556,000, Mr. Mitchell Said.
The National City Bank holds $1,556,000 in German
bonds, according to Charles E. Mitchell, its President,
and not $1,566,000,000, as was stated in the New York
"Times" to-day in a dispatch dealing with Mr. Mitchell's
appearance on Dec. 18 before the Senate Finance Committee. This was noted in a Washington account Dec. 19
to the "Times" which added:
Loan Rules Severe, Germans
Assail Insistence on Rediscountable Bills by
German Deposit Rates Cut.
American Banks—Laid to Misunderstanding.
Street Journal" of Dec. 21 we take the
"Wall
short-term
the
their
From
that
banks
• The insistence by American
to
Berlin:
according
from
following
classified
be
shall
Germany
in
extended
credits
Interest rate on savings deposits has been reduced to 4% from 6% and
whether they are eligible for rediscount at the Federal rate
on monthly deposits has been cut from 7% to 6% owing to the reducReserve banks and that ineligible credits shall be secured tion in interest rates on bonds and mortgages.
by collateral deposits has occasioned misunderstanding among
German debtor banks, according to foreign advices reaching Foreign Payments Cut Berlin Reserve—Reichsbank's
Wall Street last week,it was noted in the New York "Times"
Last Moderate Loss Due to Rapid Deposits and
of Dec. 20, which also had the following to say:
on Bonds—German Decrees Criticized.
Interest
creditors
American
The German bankers incline to the belief that their
ReFederal
York "Times" we take the following from
the
of
New
the
ruling
From
academic
are endeavoring to make use of an
German debtors.
18:
Dec.
serve to justify unreasonable demands upon hapless
Berlin
advanced by Albert H.
They see unnecessary severity in the stipulations
The comparatively slight decline in the Relchsbank's reserve shown by
National Bank,
Wiggin. Chairman of the governing board of the Chase
attributed partly to repayments of mark bank
agreement on behalf the return of Dec. 15 was
• Who is now in Berlin negotiating a new "standstill"
deposits to foreigners and partly to purchases of exchange for interest
of the banks in this country.
indefinite continuance of
springs from the payment on external bends. The banks consider
. This attitude. New York bankers explained last week,
distinctions interest payments on such bonds to be assured, always supposing that the
difficulties that European bankers have in recognizing the
In reichsmark holds at gold parity and that no priority is established for
between the American and European methods of acceptance finance.
means reparations payments after expiration of the "Hoover year."
Europe it Is common for banks to draw on their correspondents by
Reduction of the Reichsbank rate to 7% has had the effect of increasOf unsecured bills that do not relate to any specific commercial transactions;
ing applications for credit. To this is ascribed the small decline during
. in other words, "clean" or "finance" bills.
first half of the month in outstanding Reichsbank accommodation.
In this market, however, such bills are ineligible for purchase by the the
decline has retired only 45% of the credits outstanding in the last
Federal Reserve banks and are looked upon with great disfavor by the This
DEC. 26 1931.]
FINANCIAL CHRONICLE
4247
week of November, whereas the decline in the corresponding period of
German Forward Exchange Market.
last year was 64%.
The "Wall Street Journal" of Dec. 21 is authority for
It is officially estimated that the Government's compulsory reduction
of Interest rates will save business debtors nearly half a billion marks per the following from Berlin:
annum. The economists nevertheless continue to condemn the measure.
While forward transactions in foreign exchange remain forbidden the
Gustav Stolper, editor of 'Per Deutsche Volkswirt," denies that the cost
Reichsbank is now permitting importers and exporters to trade foreign
of capital will be lower. Alfred Lansburgh, editor of "Die Bank," regards
currencies against each other but not against marks, if such trading rethe Government's whole price-cheapening program as mistaken. He
genuine imports or exports. Banks are excluded from this privilege.
says that the Government should have attempted to check contraction presents
exporter who has a bill payable in sterling at 90 days can thus sell against
in values instead of further reducing values. There are other authorities An
or francs to an importer who has a bill to meet in sterling. No conwho declare that the Government measures, being designed to lower the dollars
siderable development of such transactions is expected.
general price level, will end by harming Germany as a debtor State.
At the same time, the attitude of the producers toward the Government's
measure continues relatively favorable. The reduction in railway freight
Russian Debts to Germany.
returns alone will save business 300 million marks yearly. It is officially
From its Berlin bureau the "Wall Street Journal" of
calculated that the immediate wage reduction in different branches of
Industry under Bruening's decree will be between 10 and 14%. That Dec. 21 reported the following:
would leave wages 16 to 21% below 1930, when the highest level was
An official statement reveals that Russian debts to Germany amount to
reached.
Rm. 1,200,000,000 which run from three months to four years. Of this
financed
total. Rm. 700.000.000 have been guaranteed by the Reich and
German Interest Rates—Berlin Banks Official Says through the Reichsbank and Gold Discount Bank.
Reduction Would Affect Holders of Bonds.
The following from Berlin is from the "Wall Street Great Britain Tells Germany Duties' Must Stand—
Note Says No Concessions Are Possible Until
Journal" of Dec. 17:
Adoption of a Permanent Tariff Policy—Germans
Georg Solnissen, a general manager of Deutsche Bank und Disconto
Gesellschaft, points out in the report of the German Bankers Association
See Pact Broken.
that German bankers unanimously oppose a reduction in German interest
rates because the property of German and foreign owners of German bonds
In reply to the German suggestion of several weeks ago
would suffer. Bankers and bondholders, however, must accept Bruening's that negotiations open for modification of the British
decision as the last effort of Germany to overcome her difficulties, until
favor of German goods, the British
definite international arrangements ease the situation. Herr Solmssen anti-dumping duties in
states that the present and all other possible efforts will be fruitless if the Ambassador has submitted a note stating that his GovernInternational discussions do not bring concrete results.
ment regrets it is unable to make any con.cessions. This
Further amalgamations in German banking are termed inevitable in order
a cablegram Dec. 18 from Berlin to the
to reduce high overhead expenses with the present reduced volume of busi- is learned from
ness.
New York "Times" which continued:
provisional,
It is pointed out that the present import duties are only
adopted can
and the note states that only when a permanent tariff bill is
Fall in German Savings—Reduction in Deposits During such negotiations be successful.
German an-.
Mid-Year Crisis 108,000,000 Marks.
The British Government leaves it to the judgment of the
the
thorities whether they want to send a delegation to London to discuss
The "Times" reported the following from Berlin Dec. 18:
agreement.
trade
matter in keeping with the existing Anglo-German
German
Savings bank deposits in Germany,as now reported for Nov. 1,amounted
In governmental circles here it is contended that the damage to
to 9,936 million marks,comparing with 11,044 millions at the end of March. exports will be permanent, although the present British tariffs may be
This seems to indicate that the loss in actual savings deposits during the temporary. The provision in the trade agreement obliging the two governthreaten
panic crisis of mid-summer was more than 1.100 millions.
ments to start negotiations as soon as the measures of one country
these negotiations
to damage the other is interpreted here as meaning that
bearable compromise.
are not a mere formal procedure, but must lead to a
Government, therefore, is inclined to regard the British
Support by Germany Urged for German Bonds at The German
trade agreement,'
refusal to consider any concessions as a violation of the
New York.
which would lead to German reprisals.
kind the
It is taken for granted that in order to avoid a conflict of this
According to Berlin advices Dec. 19 to the New York government
will send a Commission to London. Germany finds herself in
"Times," the Berlin "Tageblatt" demands editorially that the weaker position, as German imports from Great Britain are only a
especially
Germany herself should intervene to support her external fraction of her exports to Great Britain. German tariff reprisals,
to British coal, could therefore easily be balanced through
bonds on Wall Street,in the face of the extravagant marking- with respect
British counter-measures.
down of prices for them in that market. The message
continued:
Germany Can't Pay, Dutch Expert Says—Young Plan
Group at Basle Told Transfer of Reparations
Appears Impossible.
The necessary transfer of reparations payments by •
Germany appears impossible, Hendryk Collin, Dutch econo.'
mist on Dec. 14, told the Youn Plan Advisory Committee •
An item regarding permission sought by German com- at Basle, studying Germany's capacity to pay reparations'
panies to support their bonds in New York appeared in An Associated Press cablegram from Basle to the New York
our issue of Dec. 19, page 4081.
"Evening Post" added:
The "Tageblatt" asserts emphatically that interest will continuo to be
paid punctually on these bonds, but it points out that the collapse in New
York's quotations injures Germany's international credit.
It admits the difficulty in such intervention, which would have to take
the form of buying up bonds on the New York market and which, therefore,
would involve the weakening of the Reichsbank's reserve through the resultant remittances in payment.
Germany's Budget Deficit—Seven Months' Shortage
Small—Surplus in Ordinary Revenue.
A cablegram as follows from Berlin Dec. 18 is taken from
the New York "Times":
The Reich's ordinary revenue during the completed seven months of the
financial year is stated as 5,170 million marks, with ordinary expenditure
at 5,131 millions. Extraordinary revenue was 25 millions, extraordinary
expenditure 81 millions.
Since the beginning of the financial year, 245 millions of floating debt
has been repaid. The total now stands at 1,747 millions.
busiThis, he said, is partly because reparations did not originate from
ness transactions and partly because of the reluctance of creditors to receive
payments from Germany in the form of goods.
discussion of business
It is impossible, he said in the course of a general
conditions, to analyze the world's economic crisis without reference to public
debts. He intimated that prompt measures must be taken.
The French were understood to have tried to sidetrack the general debate.
commisbut Collin, who has presided over several League of Nations tariff
sions, delved into the commercial policies of several nations whose delegates
took part in the discussion.
belief
In German quarters this debate was watched very closely in the
clearly than
that it would reveal the attitude of the several experts more
will the Commission's final report.
Originally to-day's meeting was to have considered a summary of thern
position of the German railways.
Outside the Committee it became known that the Swiss have expressed
concern at the rapidity with which property in some of their cities and •
towns is falling into German hands.
Whole sections of Zurich were reported to have been purchased during
the flight of capital from Germany,and reliable estimates placed the amount
of German capital in Switzerland at between three and four billion marks.•
Shnultaneously a report came from Berne that the Swiss Government •
had abrogated a commercial treaty with Germany, effective next February.
The two countries have been fighting a tariff war for some time.
Berlin Not Disturbed Over Trade Balance—November's
Lower Export Surplus Seasonable-11 Months'
Increase Over 1930 $286,000,000.
The decrease in Germany's export surplus from the
387 million marks in September and the 396 million of
October to 267 million in November was occasioned particularly by reduced export of iron and steel, coal, ships,
machines and textiles, said Berlin advices Dec. 18 to the Germany Blames Reparation Agent—Debt Comptroller.
New York "Times" which further observed:
Banker Says, Transferred Payments Out of BorTo most countries with a recently depreciated currency, exports decreased
rowed Funds—Short-term Loans Fatal.
materially, but shipments to England increased. It is, however, generally
Associated Press advices as follows Dec. 15 are from the
believed that the decrease in exports during November was partly, if not
mainly, attributable to merely seasonal causes. In 1930, November exports New York "Evening Post":
decreased 142 million marks from October, which is 13 million more than
the decline this year.
The important fact is that the export surplus for the first 11 months should
have reached $o great a sum as 2,624 million marks,as against 1,420 million
In the same months of 1930. So far as imports were concerned, the total for
November was practically the same as in October, when it was 483 million
marks, as compared with 448 million in September.
George Sohnsson, President of the German Bankers' Associaion, appealed'
to Germany's creditors. in an address before the Association to-day, to
"make an effort to understand Germany's position."
"This has been the hardest of all post-war years," he said. "Encroachments on private property which we resisted to the last we submit to now
because we have reached a point where all which calls itself German must
stand together."
4248
FINANCIAL CHRONICLE
[VOL. 133.
He blamed the agent-general for reparations for transferring reparations After all possibilities of economies are exhausted through decreased salaries
and reductions in staff, the saving cannot exceed 18%, he declared.
out of borrowed money instead of out of surplus exports.
"The shrinkage was caused in the first instance," Dr. Ilomberger said.
"If the German Government now calls upon the Fatherland for a last
-defensive effort until a definite international settlement is reached, it must "by the economic depression, but may also be attributed to the growing
settlement
competition
of other forms of transport, in particular motor transport.
be emphasized again and again that efforts are vain unless such a
It is true that Germany was the first country to resort to legislation for
meets the requirements of the world's economic needs."
He made no effort to conceal past mistakes in the utilization of borrowed the regulation of relations between rail and motor transport, and the
Reichsbahn has succeeded in cheapening the costs of carriage and facilitating
osipltal by both public and private concerns.
"But," said he, "we were encouraged in taking up short loans by all door-to-door service.
foreign financial advisers, even by the reparations agent himself. We all
Urges New Rate Reduction.
aired in believing that the period of short-term capitalization would ,be
"Nevertheless a further increase in the competition of motor transport
merely transient."
is to be expected. A new rate reduction amounting to 300.000,000 marks
is justified in view of the measures introduced by the Reich for the lowering of prices and by the reductions in staff and materials. The year 1931
Deficit of German Railways Reported at Basle— will close with a deficit and while in 1932 the effects of the emergency
decrees
will be felt, the prospects do not appear favorable."
Receipts Furnishing Guarantee for Reparations
The subcommitte of statisticians working to compile an estimate of
Said to Show 10% Loss—French Still Insist on Germany's net indebtedness was completing its study to-night and Is
Payment According to Treaties
States Will Reduce War Debts.
Unless
United
expected to report to-morrow.
The Gorman railways, whose receipts furnish a guarantee German Banks Lose Deposits in October—Total Now
30% Below April Peak—Foreign and Inland Credits
the payment of Germany's unconditional annuities under
Reduced.
the Young Plan, are now facing a deficit of at least 10%,
Advices as follows from Berlin are taken from the "Wall
it was reported on Dec. 15 to the special Advisory Committee
-of the Bank for International Settlements examining the Street Journal" of Dec. 16:
Deposits in the largest German banks at the close of October showed a
-German claims for relief from reparations payments. A
further decline from the month previous and recorded a full 38% drop from
Basle cablegram on that date to the New York "Times" the April totals of deposits, which were the largest for 1931. Foreign
credits have evidently been withdrawn to the full since the conclusion of the
went on to say:
for
Dr. Homberger, Director of the Reichsbahn, came in person to supplement a written report he submitted on the subject in response to the Committee's request last week for Information. This report concludes a series
presented by Germany to establish, first, the crushing burden of Germany's
6sreign debt: second, the impossibility of maintaining a balanced budget,
and, third, the diminishing hope of Germany of maintaining her favorable
trade balance.
But in the face of this picture of Germany's prostration the experts
-to-night had not yet reached an agreement on the general purport of their
proposed report to the World Bank and the interested governments.
after two days of conferences they appointed, not a drafting committee
but what was defined in a communique as a "preparatory committee to
consider the preliminary questions bearing upon the conclusions of the
Advisory CommItee's work."
Agreement Still Lacking.
The fact that this Committee, headed by Alberto Beneduce, the Chairman, and including Sir Walter Layton of Britain. Charles Hist of France
and Dr. Carl Melchior of Germany, was designated as a preliminary committee indicates that no agreement on the scope of the committee's report
has been reached. Otherwise a drafting committee, pure and simple.
would have been named and would have been charged with drawing up a
report.
Instead, another long private conference was proceeding In Signor
Beneduce's apartments to-night in an effort to reach a compromise.
As the negotiations progress it becomes more apparent that the only
compromise that can obtain unanimous adhesions will be a report of a
*strictly conservative character. That Is to say a report In complete conformity with the Young Plan, advising the Government that it Is no
longer possible for Germany to make conditional payments and recommending in general terms a conference which might adapt reparations
to existing and probable future conditions.
In this report there is unlikely to be a place for any great part of the
statistical information submitted to this Committee, since the delegates
(Ind it impractical to give proof to such figures as their estimate of the
Belch's foreign assets. Other figures are of a nature to bring criticism
on One country or another, and the report, seeking to avoid controversial
features, would leave these questions to the governments to consider
themselves.
Threat of Ruin Seen.
On the other hand there are those who contend that the information
communicated to this committee shows beyond doubt that regardless
er Chancellor Bruening's decrees and regardless of the contributory reasons which resulted in the present situation, Germany unquestionably
ts in a position which in a very short time will end in ruin.
The Young Plan, they contend, was framed at the peak of world prosperity. without the slightest conception that such a depression was possible,
and, as the railway report to-day shows, did not reckon with contingencies
which would shake even the unconditional payments. It is therefore
argued by this group that the Young Plan at present is unworkable and
probably never will be.
It is argued by others, in accordance with reasoning said to have been
Credited to Walter W. Stewart, United States delegate, that while reparatiOns are clearly impossible now, it is easily conceivable that a certain level
Prosperity not equaling the bumper year of 1929 may be touched in the
future, when some reparations might be possible. Therefore, they say,
the duty of the Committee is to recommend the suspension of payments
(be the present and to urge the governments to frame a new plan in proportion with future possibilltes.
Outside all these arguments stand the French with the written text of
The Hague agreements, stipulating that the unconditional payments are
Intangible, and of the Young Plan as a permanent and final reparations
'settlements. They also insist that reparations cannot be reduced until
ale United States Congress has made a definite commitment concerning
reductions In war debts.
Standstill Agreement—these credit withdrawals including mark balances
(in part), stock exchange credits (following sales by foreigners) and seasonal
credits.
In addition, foreign acceptances falling due during the April to October
Period were not renewed in entirety. Inland creditors also withdrew funds
from the large banks just prior to the Prussian diet vote on Oct. 10 and
these funds have only returned in part since that date. Totals of deposits
in the six big banks for April, and from August through October. follow:
April
August. (Highest 1931)
October.
September.
DD-Bank
2.960,000.000 3.052.000.000 3,200.000.000 3.973.000.000
Dresdner
1,394,000.000 1,491.000.000 1,515.000.000 2,112.000.000
Danat
1,341.000.000 1,355.000.000 1,382,000.000 2,167.000.000
Commerzbank- -1,054.000,000 1.119.000.000 1.146.000,000 1,429.000,000
Roichskredit
450.000.000 449,000.000 479.000,000 601.000,000
Berl Handelsges- 301.000.000 307.000.000 33S.000.000 399.000.000
Total
7.500.000,000 7.773,000.000 8.060,000.000 10681,000,000
The DD-Bank is generally considered the strongest large commercial
banking Institution in Germany, but has suffered loss in deposits for this
very reason as foreign credits have to a large extent been handled through
this bank. The Government has likewise forced It to give advances to certain industrial and commercial concerns in dire need of funds to pay off
bank loans elsewhere. Deposit losses have been off-set by increased
indebtedness at the Reichsbank but currently neither the position of these
banks nor of the Reichsbank causes much concern.
Germany Seizes Foreign Exchange—Wiggin Committee
Told Proceeds Have Been Applied to Debt Payments.
Associated Press accounts from Basle, Dec. 12, are taken
as follows from the New York "Evening Post":
Almost all the foreign exchange in Germany resulting from the recent
favorable trade balance has been seized in an effort to repay debts, experts
of the Reichsbank told the Young Plan Advisory Committee to-day.
The Committee to-day took up the task of investigating the situation of
the Reichsbank since the report of the Wiggin Committee last August, Two
members of the German delegation outlined the present condition of the
bank, enlarging on the Wiggin report which was concerned chiefly with
short-term credits.
They advised the Committee that no Influx of foreign exchange could
make it possible to repay the credits at the present speed.
The German representatives said extraordinary means have been taken
to repay the debts falling under the "freezing" arrangement agreed upon
In August. This arrangement was an understanding among foreign bankers
not to demand payment of short-term credits until Feb. 29 1932. They
reiterated that one billion reichsmarks have been repaid in the period from
July 3 1931 to mid-November.
The investigation of the Reichsbank's condition probably will be completed to-day. A request by the Committee for information on German
railways resulted in the sending of a high rillway official from Berlin. He
Is expected to arrive for Monday's session.
German Sales Tax Increased.
A German Government decree of Dec. 9, increased the
Federal sales tax from 0.85% to 2% ad valorem, effective
Jan. 1 1932, including all products except bread, bread
grains and kindred products, it is stated in a cablegram
received in the Department of Commerce from Commercial
Attache H. Lawrence Groves, Berlin. In announcing this
on Dec. 12, the Department also said:
Imported goods are to be subject to the same tax, except for a few important food products, essential raw materials and semi-manufactures,
Two More Subcommittees Named.
In this situation it is improbable that any further meetings of the full Hitherto, the German sales tax was not levied on the import transaction.
committee will be held until the preliminary subcommittee converts itself
Into a drafting committee. Two other subcommittee were appointed
Large Berlin Mill Suspends Payment—Borsig Machine
to-day—one headed by Hendryk Collin of Holland, to study questions
Works, Unit of the Second Greatest German Group
relating to the Reich budget, such as the educational appropriation which
occupied the Committee Saturday, and one of railway experts headed by
Seeks to Continue— Other Plants Unaffected.
Otto Rydbeck of Sweden,to examine the details Dr. Homberger will submit,
Under date of Dec. 18, a cablegram from Berlin to the
supplementing his statement of to-day.
That statement is of interest not only because the Reichsbahn receipts New York "Times" said:
furnish a definite sum annually as a guarantee for the unconditional reparaThe firm of A. Borsig. Ltd., of Berlin-Tegel. the largest member of the
tions, but also for the fact that the reasons for the difficulties are particularly Borsig Concern and the oldest Berlin machine works, suspended payments
*traced to the growing competition of motor transport with the railways. to-day as a result of the depression,
which for a long time had not permitted
Dr. Hombergar said the receipts for 1929 reached 5,400,000.000 reichs- work at full capacity.
marks (about 31.350,000,000). They have fallen to an estimate for 1931
The plant, which Is known as a model of efficiency, is employing MOO
of 3.860,000,000 marks (about $950.000,000), or 28% less than for 1929. workmen at present, and the orders on hand amount
to nearly $3,000,000.
DEC. 26 1931.]
FINANCIAL CHRONICLE
The Borsig Concern, next to the Krupp Works, is the largest German
group owned by one family. It comprises extensive coal mines, steel
furnaces and mills in Upper Silesia and a locomotive works, and is the
largest unit among Berlin machinery manufacture plants, with a capital of
10.000,000 marks (about $2,400,000)•
The Berlin plant, which was organized as a limited liability corporation, owned by two brothers, Conrad and Ernst von Borsig, had a turnover in 1929 of around $10,000,000. The turnover for 1931, including
December, will be more than $7.000.000.
Half of the orders for 1931 were Russian, and 80% of all the orders
came from abroad. By July the corporation could still hire new men.
Its financial difficulties were said to be the direct result of the failure of
several debtors anf substantial losses through the depreciation of foreign
currencies, especially in connection with business done with India and
Egypt. This firm built the pumps for the Assuan Dam. among other
things.
It is hoped here that negotiations with the creditors will lead to a settlement which will permit the plant to carry on work.
No exact figures about the liabilities and assets are available so far.
The two Borsig brothers are among the most respected German industrialists. Ernst Borsig until recently was a member of the Board of the
Federation of German Industries.
The machinery plant was founded in 1837 by the grandfather of the
present owners, and since then had grown without interruption. Its
specialties were boilers, steam engines, air compressors, refrigerators and
pumps.
4249
sales. Suggestions are that the agreement might be revamped and made
more satisfactory through a greater exchange of goods for goods.
The Bank of Italy continues to increase its metallic hod holdings which
are now equivalent to 39% of circulation and make total reserves 50% of
all obligations. Circulation has again been decreased and loans and discounts are slightly up. Bank clearnaces showed a sharp increase but
corporation investments a net decrease of 210,000,000 lire.
The decision of the Banca Commerciale Italians to
relinquish its holdings of industrial stocks was referred to in
our issue of Nov. 7, page 3038. In our issue of Nov. 14,
page 3180, reference was made to the formation of the State
Industrial Bank of Italy to release frozen assets of banks.
Speyer & Co. in Receipt of Funds to Pay Jan. 1 Coupons
of Hungarian Consolidated Municipal Loans—
State Loan Payment on
Hungary Remits for 7
Feb. 2.
Speyer & Co. announce that (partly from reserves created
at the time of the issue of these loans) they have the necessary funds to pay the Jan. 1 1932, coupons of the Hungarian
Loan of 1925 and of the 7%
Consolidated Municipal 7
Loan of 1926, and also to redeem at par on that date the
Italy's Next Budget Set at $1,103,000,000—Cabinet $173,500 Consolidated Municipal 732% Bonds drawn for
Approves $86,000,000 Increase for the Fiscal Year.
the sinking fund.
From the New York "Times" of Dec. 20 we quote the
The full amount required to redeem on Jan. 1 1932,
following from Rome Dec. 19:
$96,500 Consolidated Municipal 7% Bonds (drawn for the
The Cabinet Council met to-day under Premier Mussolini's chairmanship
sinking fund) has not yet been received.
and began its examination of the State budget for the next fiscal year. It
Speyer & Co. also announce that, as regards the 73z%
approved only the estimates of expenditure of the various Ministries, leaving
forecasts of the revenue to its next sitting.
State Loan of the Kingdom of Hungary, the necessary funds
According to figures made public, next year's estimated expenditures
Feb. 1 1932 coupon, and to comply with the 1931
will total $1.103,000,000. an increase of $86,000,000 over the expenditure to pay
sinking fund provisions, have been received.
foreseen for the present fiscal year.
As the Ministries of Finance and Education have been obliged to Increase
their estimated expenditure by $26,000.000 because they have shouldered
certain expenses formerly borne by the provinces and municipalities, which
are thereby relieved of that burden, however,the true Increase in expenditure
amounts to only $60.000.000.
The estimated expenditure of the three military Ministries—War. Marine
and Aeronautics—is exactly equal to the present year's. for trifling increases
In the naval and aeronautic budgets are compensated for by a decrease in
the budget of the War Ministry.
Estimated military expenses altogether total $276,000,000, or almost
precisely 25% of the total budget. Of this sum $156,000,000 will be spent
by tho Ministry of War, $81,000,000 by the navy and $39,000,000 by the
Ministry of Aeronautics.
The Ministry of War is the only one which shows a decrease compared
with the present fiscal year, and the decrease is only $260.000. In addition
to those foreseen for the Ministries of Finance and Education, the chief
ncreases are shown by the Ministry of Communication, which will pay
large subsidies to steamship lines, and the Ministry of Agriculture, which
will push its land reclaiming scheme.
The treasury statement published to-day shows another deficit for the
first five months of the present fiscal year. totaling $73,000,000, cash reserves at the treasury's disposal amount to $122.000.000 while both the
public debt and fiduciary circulation showed further decreases during
November and now stand at $4,842,000,000 and $750,000,000. respectively.
Italy's Raw Silk Industry Threatened.
Drastic reduction in prices obtainable for cocoons in Italy
materially reduced the 1931 production, according to Consul
Homer Brett, Milan, in a report made public through the
Commerce Department. With regard thereto the Department o Dec. 9 said:
Production in 1931 was 34,458,500 kilograms of raw silk, compared wth
an average of slightly more than 52,000,000 kilograms in the three previous
years, Mr. Brett quoted trade figures.
Any serious curtailment of silk production in Italy will force Germany to
seek elsewhere for requirements. According to Vice-Consul Howard
Elting Jr., Dresden, Germany, raw silk imports by Germany originated
almost entirely from Italy in the past year.
Amortization Funds Available for Purchase of Bonds
of Uruguay.
The Chase National Bank of the City of New York, as
successor fiscal agent, has notified holders of Oriental Republic of Uruguay external debt 5% gold bonds of 1915,
that it has received $13,125 as an amortization fund, which,
together with an unexpended balance remaining in its hands
of $151, is available for the purchase of the above bonds at
a price below par and accrued interest. Tenders should be
made before noon on Dec. 31 to the corporate trust department, 11 Broad Street. The right is reserved to reject
any and all tenders.
Bonds of Kingdom of Roumania Monopolies Institute
Drawn for Redemption.
The Chase National Bank of the City of New York, City
Bank Farmers Trust Co., and Dillon, Read & Co., as
American fiscal agents, are notifying holders of Kingdom
of Roumania Monopolies Institute 7% guaranteed external
sinking fund gold bonds, stabilization and development loan
of 1929, due Feb. 1 1959, that $446,300 principal amount of
these bonds have been drawn by lot for redemption on
Feb. 1 1932, at par out of the sinking fund moneys received
by the American fiscal agents. Such drawn bonds will be
paid upon presentation at the offices of any one of the fiscal
agents on and after the redemption date from which they
will cease to bear interest. The notice calls attention to the
fact that $40,200 previously drawn have not yet been
presented for payment.
Japan's Suspension of Gold Ascribed to "Sheer
Organization of Italian Share Institute in Italy—
Necessity."
Further Wage Reductions in Italy Prohibited.
Japan's suspension of gold payments was regarded in
The organization of he Italian Share Institute, previously
announced, was considered by Italian economic leaders to the London market as a measure of sheer economic necessity.
be the outstanding evelopment of November, according to a said a London cablegram Dec. 19 to the New York "Timess,1
radiogram received by the Commerce Department from which likewise stated:
The foreign trade of Japan had been adversely affected by the fall in
Commercial Attache M. M. Mitchell, Rome. The Depart- sterling,
by the Chinese boycott since the Manchurian episode developed
ment on Dec. 10 added:
and to some extent by the rise of silver, a bull movement which is equivalent
This credit organization was established for the purpose of financing to a bear movement on the Japanese yen.
industry by 10-year loans against shares and for direct participation in
Through great efforts Japan had reduced its adverse balance of trade,
Industries themselves through purchase of shares.
but this had necessitated heavy exports of gold, and further loss was foreThe Institute is capitalized at 500,000,000 lire and is authorized to issue shadowed in case of adherence to the gold standard. In the circumstances,
bonds and shares, and with the proceeds lift industrial shares from bank it is believed that Japan could not afford to run the risk of further depletion
portfolios, particularly those of the Banca Commerciale.
of its gold reserves, which would merely have postponed the crisis.
It is expected that frozen assets will thus be liberated and made available
for ordinary short-term commercial credit operations. It is at the same time
contemplated to permit the Government to exercise a greater directive Japan Sends Gold to Pay for Goods—Lack of Accontrol over the general financial and industrial activities of the country.
ceptance Credits from American Banks Compels
The Government has prohibited further wage reductions, except in most
Shipments of Metal—$25,000,000 Coming.
exceptional circumstances. The unfavroable foreign trade balance for the
first 10 months of 1931 was less than half than that for the corresponding
From the New York "Evening Post" of Dec. 24, we take
period of 1930. October, like September, showed a favroable trade balance the following:
and the Government has indicated its intention of surveying all foreign
Announcement was made to-day that the Yokohama Specie Batik had
trade relations with the idea of achieving permanent improvement in this
United States and that 30,000.000
balance through tariff bartering. There is an increasing feeling in Italy shipped 20,000,000 yen in gold to the
additional would be forwarded to this country In the near future. a
that the present trade agreement with Russia is somewhat burdensome to yen
about
of
$25,000.000.
total
for
cash
Italy, inasmuch as Russia gets long-term credits for purchases but
4250
FINANCIAL CHRONICLE
[VOL. 133.
It was learned at the office of the bank in New York that this gold is
Trading in the Shanghai realty market in November exceeded all exsent to finance Japanese imports, principally of cotton. This is now
pectations, with transactions aggregating upwards of 4,000,000 tea;
being done virtually on a cash basis, while heretofore the trade was financed
($1,600,000), or about 30% greater than for October. The Shanghai
in the American acceptance market.
share market is maintaining steadiness.
The Manchurian trading situation remains unchanged, with transactions
Banks Restrict Credit.
New York and other American banks are cautiously restricting their stagnant, according to Assistant Trade Commissioner C.E.Christopherson,
lines of credit even in the acceptance market, and in some localities outside via radiogram from Mukden Dec. 9.
The approved budget of the South Manchurian Railway for 1933 estiof New York are able to provide acceptance credits to cover only the
Importing and exporting business in their own territory. This is said to mates income of 18,000,000 yen, and expenditure totaling 17,000.000 (ear
value
of yen $0.4985). The 1932 budget estimated total income of 21.be true of most Boston banks. With the yen at 41 cents for cables, against
a par value of 49.8 cents, this means that Japan is still paying its trade 000,000 yen and expenditures of 19.000,000.
balances here in gold as the cheapest means of settling.
The Japanese Government in placing an embargo on gold on Dec.6
inserted a clause allowing shipments to be made by special permission Resignation of Premier Scullen of Australia—Action
and is giving authority to the Yokohama Specie Bank to make the present
Follows Defeat of the Labor Parry.
shipments.
United Press accounts to the "Wall Street Journal" of
Yen Contracts to Be Paid in Gold.
Gold recently imported from Japan will be employed in part to pay for Dec. 21 from Melbourne Australia, said:
The Australia's Laborite Premier James Scullin abs resigned following
forward purchases of the yen before it went off the gold standard at a
time when the Yokohama Specie Bank and the Japanese Government the defeat of his party in Saturday's (Dec. 19) election, and advised the
were supporting Japanese currency. These contracts are due for settle- Governor General to receive Joseph Lyons, leader of the victorious United
Party, to form a new government.
ment at the end of the year.
The United Party won 37 of the 75 seats in the House of Representatives.
It was pointed out at the bank to-day that the reluctance of American
banks to provide acceptance credits tends to hamper trade between the The Party, a combination of Nationalists and rebel Laborites led by
two countries. However, It is expected that Japanese silk bills will soon Lyons, held 18 seats in the last Parliament.
The Laborites lost 30 of the 46 seats they held in the last House. Six
balance the trade and thereafter gold shipments will become unnecessary.
members of Scullin's Government were defeated. Edward Theodore,
Federal Treasurer accused of political bias in distributing money for unrelief, polled only 6,878 votes, more than 10,000 less than his
Japan Loses Heavily in Dollar Speculation—$12,500,000 employment
opponent.
Must Be Paid by Central Bank to Cover Private
An authoritative forecast of the new cabinet included: Lyons, Premier
and Treasurer; J. G. Latham, Foreign Minister; Attorney-General and
Purchases—Troubles Laid to Gold Embargo.
leader in the House of Representatives, H. S. Gullett; Minister of Customs,
The following wireless message from Tokio Dec. 21 is Dr. Earl Page; Postmaster
General or Home Minister, Thomas Patterson:
Markets Minister, Sir William Glasgow; Minister of Defense, Sir George
from the New York "Times":
Pearce;
Vice-President
of
the
Executive Council and leader in the Senate.
Viscount Takahashi, the new Finance Minister, has been investigating
the extent of speculation in dollars by Japanese since the development of .1. A. Fenton; Minister of Health and Repatriation, Ex-Premier Stanley
M.
Bruce.
the Manchurian issue and has discovered it was much larger than had
The above Cabinet would give the Nationalists almost complete control
been thought.
He has found, according to the Japanese newspapers, that Jonnosuke of the Lyons-Latham administration.
The Stock Exchange reacted favorably to the election results. There
Inouye, the Finance Minister in the Wakatsuki Cabinet, underestimated
the amount of dollars bought here when he put the total at $167,000,000. was a strong demand for Federal bonds. Lyons was expected to summon
the
loan council early in 1932 to review the financial situation.
Viscount Takahashi now puts the amount at $255,000,000, which was
Nine Communist candidates in the election polled only 8,000 votes
bought between Sept. 20, following the advance of the Japanese army in
and forfeited their deposits.
Manchuria, and mid-October.
Gold has been shipped to the United States to cover the $167,000,000,
but now $88,000,000 remains to be met. With the yen off about
15%.
the Yokohama Specie Bank, which controls the dealings in exchange, Algerian Bond Issues Offered to Finance Public Works'
Program.
stands to lose about $12,500,000 through the purchase of gold with yen in
order to meet this demand, or more if the yen should fall further.
An
Algerian
bond
issue
of 810,000,000 francs ($31,764,700)
The Yokohama institution is covered in the transaction by a guarantee
given by the Bank of Japan and the Government is now considering what has been authorized by the Government General of Algeria
It will do to cover the loss.
to finance the Government's irrigation and water conservaMr. Inouye blames the present Government for the situation in which
tion projects, according to a report from Consul Oscar S.
it finds itself. He states that if the Cabinet
had not so hurriedly reimposed the embargo on the export of gold by ordering it the day after the Holzer, Algiers, made public on Dec. 17 by the Commerce
change in Government, it would have been possible to put the loss on the Department, which further says:
speculators in dollar exchange and not on the country.
The issue has been underwritten by French investment bankers. The
bonds have a 4% coupon rate, mature In 1962 and are offered at 98, the
In publishing the above, the "Times" said:
report states. According to reports from informed circles, the Algerian
Following the reimposition of the gold embargo, the Tokio "Asahi"
Government is expected to show a small deficit for this year, but a surplus
estimated that firms which had been buying dollars in anticipation of
this of 72,000,000 francs was established in 1930.
step would save between $30,000,000 and $60,000,000 through it. The
newspaper estimated that about $200,000,000 was held speculatively,
the principal holders being the Mitsui Bank, $50,000.000; the Sumitomo Suit
by Foreigners Against National Bank of Egypt
Bank. $20,000.000; the Mitsubishi Bank. $10,000,000, and various trust
for Payment in Gold—Contend Decree Does Not
debenture and insurance companies, making up the remainder.
Heavy Transactions on Tokio Stock Exchange Following Reopening on Dec. 18 Result in Closing in
Afternoon of Next Day.
A Tokio account as follows is taken from the "Wall
Street Journal" of Dec. 19:
The Stock Exchange was forced to close Saturday [Dec. 191 afternoon,
due to the tremendous volume of business. On Friday (Dec. 181 total
transactions amounted to 850,000 shares, the largest since the outbreak
of the World War.
The market was closed immediately after the enactment of the embargo
on gold exports and was reopened for business again on Thursday, when
trading was orderly.
Apply to Them.
Cairo advices Dec. 21 to the New York "Times" stated:
Proceedings were instituted to-day by several foreigners here against
the National Bank of Egypt for payment of Egyptian bank-notes in gold.
They base their claim on the contention that a decree issued in 1914, known
as the "forced-rate" law, under which the paper pound was to be accepted
as the equivalent of the gold pound, is applicable to foreigners, because
prior to its promulgation it was not submitted for approval to the General
Assembly of mixed tribunals. Before any law can be binding on foreigners
resident here it must be approved by the foreign powers represented in this
Assembly.
31% Cut in Salaries by State Railways of Chile.
• Associated Press accounts from Santiago, Chile, on
The closing of the Tokio Stock Exchange following the Dec. 19 stated:
Salary reductions running from 6 to 31%, beginning on Jan. I were
placing of an embargo on gold exports by Japan, and the ordered
to-day by the management of the State Railways because of
reopening of the Exchange on Dec. 18 was noted in our declining revenues and the probability of a deficit next
year.
Issue of Dec. 19, page 4083.
Conclusion of Conference at Lima of Representatives
of Latin American Central Banks—Urged to Avoid
Japanese Balance of Payments.
Inflation—Recommendation That Budgets Be
The following from Tokio is from the "Wall Street
Balanced.
Journal" of Dec. 19:
Complete report on Japanese invisible trade for 1930 shows an import
An Associated Press cablegram from Lima, Peru, Dec. 12
excess of 15,000,000 yen, making the total adverse balance of international
to the New York "Herald Tribune" said:
Payments, including the import surplus in the visible foreign trade, of
175.000,000 yen.
Based on trade figures thus far available, it is estimated that the excess
of visible imports over exports for 1931 will amount to about 134,000,000
yen.
Bankers of five South American countries closed a West
Coast financial
conference to-day with a recommendation that their governments
balance
their budgets. The delegates, representing the central banks
of Peru.
Bolivia, Ecuador, Chile and Colombia, also decided to ask
their governments to refrain from borrowing from the banks and thus avoid
inflation of
currency. They agreed to do their utmost to continue payments
on foreign
debts.
Provision was made for further sessions of the conference,
which will
meet next in 1933, when its scope is expected to be enlarged to include
other
central banks as well as conversion and rediscount organizations.
A motion of appreciation for the "cordial and efficient help" of Professor
E. W. Kemmerer, Princeton University financial expert,
and a delegation
from the New York Federal Reserve Bank, was adopted.
Loans and Credit in China Curtailed, Attache States.
Due to the political situation and the banks' curtailment of
loans and credit advances to safeguard their liquid reserves,
the Shanghai money market continues tight, Commercial
Attache Julean Arnold has stated, according to the "United
States Daily" of Dec. 17, which also further quoted the
From the New York "Journal of Commerce" of Dec. 14
Department of Commerce as follows:
we take the following:
DEC. 26 1931.]
FINANCIAL CHRONICLE
4251
According to reports in local financial quarters one of the aims of the con- Exchange Control Board of Colombia Declines to
ference was to study the possibility of creating bills which could be used
Permit Transfer of Interest Payment on Bonds of
as collateral on dollar advances by the New York banks. The Federal
Farm Mortgage Bank—Payment Expected to Be
Reserve Bank of New York, it is understood, would be ready to assist such
a plan should it become possible for the Latin American countries to supply
Included in New Scrip Plan.
eligible bills.
Under date of Dec. 12 a cablegram from Bogota, Colombia,
No Credits Now.
At the present time it is considered unlikely that advances would be made Dec. 12 said:
by the New York banks or that credits would be opened by the Federal
The Exchange Control Board, operating under a decree of President
Reserve Bank of New York. It was pointed out, however, that the Okay°, will not permit the transfer next week of the next instalment of the
in
improvement
some
given
issued,
be
might
terms under which such credits
service on the Farm Mortgage Bank's outstanding $14,000,000 in bonds
trade, could be formulated at once.
which are guaranteed unconditionally by the National Government.
It was also considered likely that the bankers of the Latin American
Presumably the government has decided to include the service on these
the
of
Each
control.
countries discussed the problems of foreign exchange
bonds in its scrip plan for payment of service on other obligations. While
payments
foreign
supervises
another
or
form
countries represented in one
this, in effect, is a moratorium, former Finance Minister Marulanda's
to be made and it was considered likely that the possibility of working out resignation followed an unsuccessful effort to block payment of the October
a unified attitude as to priorities of different classes of debts was considered. instalment on the service. According to the definite terms of the forthRepublic will lend the
The conference was referred to in these columns Dec. 12, coming contract, it is understood, the Bank of theover
the administration
National Government S13,500,000 and will take
page 3899.
net revenues for the
entire
the
of the salt monopoly, paying the government
first three years and applying half to the service on the loan.
Uruguay Asked to Aid Suspended Bank of Manabi.
Of the proceeds of the loan, payable in instalments, nearly half will
destined for public works.
The following Guayaquil (Ecuador) cablgeram Dec. 20 bePrivate
banks just appointed its agents by the Bank of the Republic
grounds that
"Times":
New
York
the
from
Is
to buy and sell foreign exchange may decline the offer on the
Difficulties resulting from the closing of the Bank of Manabi Thursday the agency terms do not fully compensate for the work and risk.
brought the Superintendent of Banking from Quito last night. Before
his departure for Manabi to-day he said the bank would have the support
Colombia Currency Issue.
of the Central Bank of the Republic and would not fail. The "Telegrafo"
quotes him as saying the difficulty was due to the indiscretion of an unStreet Journal" of Dec. 16 we take the
"Wall
the
From
named public officer.
111 The Minister of War has announced that the Government will be obliged following:
Bank
to suspend the operation of universal military service. No new enlistments
Current reports in Colombia are that the amount of bills which the
the governwill be accepted, it is reported, until additional funds are available.
of the Republic may issue under the proposed contract with
originally
ment may not exceed $14,000,000, instead of $20,000.000
proposed, according to the Colombian Cable and Air Mail Weekly Service.
Uruguay Reduces Peso—Rate of 44.60 Not Expected It is reported the issue will be used as follows: $5.000,000 for amortization
departments;
to Bring Out Dollars, However.
of National Treasury debts; $3,000,000 to pay accounts due
for the new agricultural loan bank; $1,000,000 for the ColomA cablegram from Montevideo Dec. 18 to the New York $2,000,000
bian Savings Bank and $3,000,000 for public works.
produced
"Times" said:
In Bogota the proposed increase in the circulating medium has
to-day
The Bank of the Republic reduced the exchange rate of the peso
optimism. It also is stated the Minister of Finance has called a meeting
of
to 44.60c. from 44.70, where it has been holding it all week.
of delegates of all departments and municipalities to consider means
There had been practically no exchange transactions for a fortnight, taking care of service on external loans.
the holders of dollars refusing to sell at the bank's fixed rate. It is not
considered likely that to-day's decline in the official rate will bring out
Colombia Will Seek Loan of $15,000,000—Bank of
sellers, as they refused to sell at 44.50.
The sterling rate fell to 31 11-16 pence to the peso, compared with
Republic to Be Asked to Supply Funds as Efforts
Yesterday's 311-16.
Abroad Are Unsuccessful.
The following Bogota cablegram Dec. 9 is from the
Uruguay Names Eduardo Alvarez as Finance Minister,
York "Timess":
New
ChairBecome
Succeeding J. Mendivil Who Has
President Olaya Herrera to-day confirmed the Government's plans to
man of Bank of Republic.
$15,000,000 from the Bank of the Republic, but he
He was Finance Minister three years. The Finance Committee of the
Senate has been asked to postpone consideration of prolongation for a year
of the commercial moratorium which expires at the end of December.
negotiate a loan of
did not mention the salt monopoly guarantee in a statement to the press
regarding plans to meet the financial difficulties of his administration.
counsel
It was announced that George Rublee, New York lawyer acting as
had
for the government, was continuing his endeavors abroad, but so far
debt
foreign
Colombia's
on
relief
been unsuccessful in obtaining temporary
service.
While exports continue to supply sufficient foreign exchange for the regudebt, he
lar cash payment of at least the interest on the national foreign
explained, the government will recommend to the pending conference at
Bogota of representatives of the debtor States and municipalities, that the
interest on their foreign bonds be paid for the next two years with national
government 6% ten-year scrip.
Meanwhile, foreign bonds will be amortized at convenient dates and
first
cash interest payments on bonds will be resumed at the end of the
Mortgage
year, if possible. Interest payments on foreign bonds of the Farm
Bank may be included in the scrip plan, but foreign debts of private banks
will continue to be subject to the exchange control board.
The government is studying a possible revision of stamp and sales taxes
prohibitive
to offset losses in customs revenues as a result of prohibitions and
some articles
rates on luxuries. A revision of the tariff is probable to admit
Wool Market Crisis Acute in Uruguay—Exporters
Blame Regulation of Exchange—Plague Due to
Heavy Rains a Factor.
now prohibited by the high duties.
The government is hopeful that the forthcoming increase in circulation
will enable Colombian debtors to meet their obligations at local banks.
The government will disregard the proposed new revenues in budgeting
for 1932 to insure a surplus at the end of the year.
Exports to date this season have been only about one-half what they
should be. and this is the height of the season.
Although the exporters blame the Bank of the Republic's control of
exchange and the consequent difficulty of obtaining export permits, there
are various other depressing factors, including the slowness of the clip in
reaching the market and the inclination of owners to speculate for rising
prices.
A large portion of the 65,232,000 pounds of wool received in the market
to date is not of the type preferred for export. Unusually frequent winter
and spring rains have lightened the wool by removing its grease content.
This has led to a plague of parasites seldom equalled. Many sheep growers
have sold as high as 40% of their flocks to packers and butchers, resulting
in an estimated decrease of 20% in Uruguay's total number of sheep.
the manager of the Bank of the Republic on a loan to the
of $22,000,still unpublished, the newspaper El Tiempo reports that a total
will be under
000 of the loan, including the net revenues of the salt mines,
reports
the bank's management for the next 40 months. "El Tiempo"
deficit,
the distribution of proceeds as $5,500,000 for the National Treasury
Government
National
$12,000,000 for the claims of States against the
the
provided
States,
the
to
and $3,000,000 for highway subsidies owned
States agree to settle on a basis of 25% of the total.
will get
The National Savings Bank and agrarian credit institutions
indemni$1.000.000 and $2.000,000 respectively. S500,000 will go to pay
to the
go
will
$1,500.000
ties on account of canceled public works contracts,
emergency reserve fund and $8,500,000 to the three-year public works
construction program.
The National Administrative Council elected Eduardo
Acevedo Alvarez Finance Minister on Dec. 17, succeeding
Senor Mendivil, who resigned to become Chairman of the
Bank of the Republic. A Montevideo cablegram to the
Now York "Times" Dec. 17 reporting this added:
Senor Alvarez formerly was Minister of Industries.
One of the first problems to be placed on Senor Alvarez's desk will be
the question of extending the commercial moratorium expiring on Dec. 31.
BUBIIIESS men are petitioning its extension for at least another year. American, British and other foreign representatives are opposing this on the
ground that goods can be sold and the money spent and they can take
no action until termination of the moratorium, when they would have
no recourse if clients should file bankruptcy petitions.
The resignation of Signor Alvarez as Finance Minister
occurred on Dec. 16, it was indicated in Montevideo advices
that day to the "Times," which also said:
Further Bogota advices Dec. 17 are taken as follows
According to Montevideo advices Doc. 20 to the New
the same paper:
from
is
undergoing
York "Times" the Uruguayan wool business
Although the text of the contract between the Minister of Finance and
the worst crisis in recent years. The cablegram added:
government is
Announces Plan for Servicing Foreign Debt.
Plans for Purchase by Uruguay of Soviet Gasoline. Colombia
as follows was issued Dec. 11 by the
announcement
An
Associated Press advices from Montevideo (Uruguay),
Department of Commerce at Washington:
Dec. 18 stated:
The Government of the Republic of Colombia has announced in its
Authoritative reports to-day said the Iuyamtorg, Soviet South American
pay in cash the interest on
trade organization, has "virtually concluded" an arrangement to sell plan for servicing the foreign debt that it will
by it
to the Uruguayan Government 20,000 tons of gasoline at $16.50 a ton its foreign consolidated debt and upon the bankingtoloans contracted
prevent the Governso long as no extraordinary development occurs
and 10,000 tons of kerosene at $14.00.
this purpose from the
Both shipments would be slated to arrive here in June next. The ment front obtaining sufficient foreign exchange for
gasoline represents approximately 25% of the country's annual consump- country's exports, according to a cable received in the Commerce Defrom
Division
Investment
Commercial Attache
and
Finance
tion and the kerosene about 30%. The gasoline will be sold by the Gov- partment's
ernment at about the same price now charged by private companies, but at Bogota.
In the case of municipalities and departments, the debt service during
the kerosene, it was said, will net a good profit.
will be paid in scrip bearing 6% interest and amortizable
The Iuyamtorg agreed to receive Uruguayan products in payment up the next two years
in ten years, it is stated. No decision has been reached concerning the
to one-fourth the sale price, the report said.
4252
FINANCIAL CHRONICLE
manner in which the service of the loans contracted by the Agricultural
Mortgage Bank are to be paid. The Exchange Control Board must pass
upon applications to transfer the debt service of the other mortage banks;
It is expected that the Board will decide to deposit the service with the
Banco de la Republica.
$8,500,000 Is Set Aside for Work in Colombia—Part of
Fund Will Be Used for Highway Between Ecuador
and Venezuela—Credit Balked by Salt Monopoly.
Stating that some relief of unemployment is expected
from the use for public works of $8,500,000 of the Government's recent loan from the Bank of the Republic, a Bogota
cablegram Dec. 20 to the New York "Times" added:
Backed by this credit Is the salt monopoly, which the bank will operate
for 13 years, more or less, dependent upon the amortization of the loan.
A three-year plan is being devised for the expenditure of the funds, assigning 42% for 1932. 31% for 1933 and 27% for 1934. The program includes construction of 340 miles of automobile highways from the Ecuadorean to the Venezuelan border.'
The road will start at Narino and will pass through the cities of Paste,
Popayan, Cali, lbague, Bogota, Tunis. Bucaramanga and Cucuta to
the Venezuelan boundary north of Santander. The route includes the
National capital and four State capitals, which, with the other principal
towns to be touched, have more than 500,000 population.
While a considerable portion of this highway is already constructed,
American engineering experts familiar with the country believe the portion
of the loan allotted to highways will be insufficient to build more than a
third of the projected new mileage.
Control of immigration will be another step in unemployment relief.
The quota system has been decreed by the President. Only 110 Immigrants
from 11 different nationalities will be permitted to enter Colombia in 1932.
Ten each of Bulgarians, Greeks. Hindus, Lithuanians, Poles, Palestinians,
Rumanians, Russians, Syrians, Turks and Yugoslays can come in.
[VOL. 133.
Would Resist Temptation.
"The possible success of the sugar venture should not be permitted to
blind the administration of the Bank or the public in the Philippine Islands
to the great risks assumed In that venture—risk to which no commercial
banking institution is justified in subjecting the deposits to it by the Government and by the public at large. If the Bank does not resist the tempts,lions that will be thrown In its way and the efforts which will be made to
Induce it to use its funds to capitalize new industries and otherwise speculate
with its money, there will be a repetition of the unfortunate past with grave
consequences to the people of these islands.
"If the Bank is to be operated as a bank and not as an institution set up
by the Government for semi-charitable purposes, its management should
consider every transaction which it is calledupon to undertake purely and
exclusively upon the business and banking merits of the particular transaction. The mere fact that the Philippine National Bank is owned by the
Philippine Government can have no possible bearing upon the merits of any
particular transaction or policy under consideration.
"Loans for capital or fixed investment purposes should be avoided except
in the case of long-term agricultural loans to finance which long-term bonds
may be issued under the provisions of the Bank's charter.
"Loans should be properly diversified as to industries. The policy of
reducing the concentration ofloans to the sugar industry is sound and should
be continued.
Must Preserve Liquidity.
"The Philippine National Bank is, or should be, the cornerstone of the
country's banking and financial structure. It should at all times be
ready and willing to render legitimate assistance in any crisis or emergency.
To occupy this position, it must maintain a high degree of liquidity in its
assets.
"The leading banks in the 'United States are at this time keeping from
50% to 80% of their assets in very liquid form. The Philippine National
Bank can point not only to American and English banks to justify that
policy, but it can point also to the Government-controlled banks in Slam.
Java and elsewhere.
"A strong liquid bank is In a much better position to render permanent
service to a community,in stormy as well as fair weather, than a bank which
has burdened itself with losses and with many frozen-capitalloans under the
misconcetion that the best way to serve the community is to be liberal in
the extension of credit.
"In view of the political uncertainty with respect to the future of this
country, the Philippine National Bank may in the near future have to face
an economic readjustment of such magnitude as will tax its strength and
resources to the limit. For this reason, perhaps above all others, it is incumbent upon the management of the Bank and upon the GovernorGeneral, as representative of the principal stockholders interest to see that
the Bank follows strictly the most conservative policies."
Concession to Operate Colombia Salt Mines Granted
to Bank of Republic.
A concession to operate three Government salt mines for
18 years was granted to the Bank of the Republic of Colombia
on Dec. 17, conditioned upon return if the Government's
Indebtedness to the Bank should be liquidated sooner,
according to a decree of President Olaya and a contract with
According to a Washington dispatch Dec. 19 to the New
the Minister of Finance. This is learned from a Bogota
cablegram Dec. 17 to the New York "Times," which like- York "Herald Tribune" Gov.-General Davis, on leave from
his post in Manila, gave President Hoover, on Dec. 19 a
wise said:
favorable report on conditions in the Islands, but did not
The contract extends for ten years the bank's present
right to Issue
legal tender bank notes. Other clauses in the contract
give the bank hand in his expected resignation. He indicated rather
some control over the expenditure of funds for public works.
plainly, however, that personal affairs may force him to
relinquish the Governorship and he probably will not return
Increase in Export Tax on Bananas in Colombia.
to the Philippines after visiting Mrs. Davis, who is ill in
From the New York "Times" we take the following from Paris. "I called on the President to pay my respects and
Bogota (Colombia) Dec. 20:
give a brief account of the situation in the Philippines and I
The export tax of 2 cents a stem on bananas, which was
approved by did not resign," said Mr. Davis, according to the paper
Congress, has been increased to 3 cents by a Presidential decree
under the quoted.
special authorizations law.
New Plan in Mexico for Paying Debts—Finance Minister
Caution Is Imposed on Philippines Bank—GovernorConsiders Sale of Vast Properties, Some Now UnGeneral Davis Tells It Not to Yield Again to
worked—More Budget Cuts Sought—Linking of
Speculation—Rejects Pleas for a Moratorium on
External and Internal Obligations Contemplated.
Loans and Lays Down Ideas for Future Conduct—
Plans to sell a large part of the Mexican Government's
Governor-General in Washington.
vast properties to pay its debts, and to lump all obligations,
The following special correspondence from Manila, internal and external, in one
comprehensive plan, with payNov.25,is from the New York "Times" of Dec.20:
ments to be made on the total sum involved, are now under
Principles on which the Government-owned Philippines National Bank
should be conducted, and praise for the fashion in which it has met the consideration by Finance Minister Luis Mentes de Oca,
depression were laid down by Governor-General Dwight F. Davis before his according to reliable informants. A Mexico City message
departure from the Philippines on an indefinite leave of absence.
Dec. 18 to the New York "Times" from which we quote,
Mr. Davis's advice to the Bank in meeting the present emergency is
counted here as one of the most important activities of his administration. also had the following to say:
He gathered his various statements to the management into a letter which
he gave to it before he left. This letter is regarded here as an important
State paper, of unusual interest to students of banking and economics
everywhere.
Mr. Davis sets forth that the board of the Bank has put into practice the
policies he outlines and he again records his satisfcation with the conservative manner in which the institution is being run.
Pleas for Moratorium Rejected.
"In times like these," he said, "It is Inevitable that collections from local
loans, particularly long-term loans granted to farmers, will become increasingly difficult. The loans become frozen. The borrowers plead for extensions and the National Bank has received many protestations of inability
to pay. The Bank has even received petitions that it grant a moratorium
on the collection of its loans.
"This is a most serious matter. It is clear that if the Bank should establish a general policy of granting extensions or a moratorium,it would run the
risk of incurring heavy losses. We all admit that it would be impossible
for the Government to grant indefinite or continuous extensions in the collection of the taxes due It from the people; it Is just as impossible for the Bank
to permit continuous delinquencies in the collection of the debts due it from
its borrowers, because it is dealing with money which belongs to other
people and over which it has practically no control.
"I see a source of considerable difficulty for the Bank in the future arising
from the liquidation of the large loans to the sugar centrals and sugar
planters in Negros. If the exceptionat good fortune which the Bank has
enjoyed up to this time with respect to its venture into the capitalization of
a large Part of the sugar industry continuous for a sufficient length of time
In the future, the Bank will find itself with a large amount of cash on hand
available for loans and investments.
"The sarne temptations and the same influences will then confront the
Bank as confronted it some years ago when it first received the enormous
deposits of public funds and embarked upon a policy that was tragic in Its
outcome.
Senor Mentes de Oca, now said to be planning to approach foreign
financiers with his new proposal, laying his cards on the table in order
to eliminate all the complications of subsidiary agreements, which are
described as likely to produce conditions worse than priorities would.
He Is quoted as desiring to "sell the vast Government-owned properties.
many of which are not being worked, due to lack of capital, and pay off
the internal debt: to continue foreign payments within the capacity of
the Republic's treasury; reduce expenditure to the minimum consonant
with proper internal management; and, finally, to reach a condition of
true balance in this much-afflicted land's monetary affairs."
As for Mexico's foreign debt, considerable appreciation is expressed here
for the lenience of the International Committee of Bankers on Mexico,
and the committee's willingness to co-operate with Finance Minister
Montes de Oca in the belief that he will deal squarely with it.
At the same time proposals for drastic economies in the War and Marine
and Finance Departments, which have suffered the least in previous budget
prunings, are now being prepared for submission to Congress, according
to Mexico's leading financial newspaper, El Econornista. The budget
for the fiscal year 1932 had already been cut from 299,000,000 pesos (nearly
$150,000.000 at par) to 220,000.000. and a further reduction of 7,000,000
pesos is sought, which would bring the total decrease to 28% of the original estimate.
Although the government's revenue has continued to decline, general
business conditions are now declared to be definitely improving and it
begins to appear certain that Mexico will be able to pull through the crisis
without resorting to an appeal for an addition to the foreign debt, a recourse which might prove dangerous to the regime.
The proposed new budget cut is smaller than others already made, but
El Economists, after reviewing budget figures for many years back. comments that It is the most difficult problem in finance ever to come up for
legislative and executive study in Mexico. However, government employees have heretofore shown remarkable patriotism in sacrifices of pay,
while Mexico's foreign trade balance is showing improvement and Internal
stability appears to be secure.
DEC. 26 1931.]
FINANCIAL CHRONICLE
Observers of the situation here remark that Mexico now seems to have
reached a stage of economic convalescence, and they look for a period of
rehabilitation which will compare favorably with what may be expected
in many countries of major importance.
The recently decreed monetary law, which was bitterly criticized at
the time of its promulgation, is now credited with having contributed to
the improvement, with banking circles expressing themselves as agreeably
surprised. It is declared to have worked wonders in re-establishing national
confidence, which, after all, was the necessary remedy for what ailed the
country's business.
Cuba Reported Meeting Maturities.
A cablegram from Havana is taken as follows from the
"Wall Street Journal" of Dec. 14:
Treasury Department has paid to the Chase National Bank $2,500,000
the balance of principal and interest on Cuban Public Works serial 530.
due Dec. 31 1931.
More Silver for Cuba—Island Seeks to Replace American
Coins with Its Own.
In its issue of Dec. 20 the New York "Times" published
the following special correspondence from Havana Dec. 16:
In an effort to increase the circulation of Cuban silver coins the Department of the Treasury has issued a circular advising the public that all
tax offices will supply such silver as may be needed for change in commercial transactions.
Cuba has no National currency system and coins of her own mintage
are confined to gold pieces and to silver in denominations of $1, 40. 20. 10.
5, 2 and 1-cent pieces. Practically all business is transacted in American
currency.
The Government is anxious to eliminate the large number of American
silver coins here in order to replace them with Cuban coins and recently
the Royal Bank of Canada offered to segregate all American coins it received. However, no concerted effort has yet been made by the foreign
banks to increase the circulation of Cuban coinage.
The Cuban Treasury is said to have a large supply of silver and some
time ago the Government announced that employees would be paid in silver
A great deal of protest arose from the employees who claimed that the
banks would not accept silver to be exchanged into paper money, so the
idea was abandoned.
Philippine Freedom Asked in Two Bills—Measures
Introduced in House by Mr. Sabath and Mr. Crail.
The following is from the "United States Daily" of Dec. 12:
Two bills for Philippine independence, one by Representative Sabath
(Dem.), of Chicago. Ill. (H.R. 5509), to be effective July 4 1933, and the
other by Representative Crail (Rep.). of Los Angeles. Calif. (H.R. 5462).
for complete independence immediately, were introduced in the House
Dec. 11. The Crail bill provided that 30 days after Its enactment the
United States laws excluding from immigration other Asiatic peoples
ineligible for citizenship would become operative as to the Philippine people.
Representative Sabath stated orally that there are 13,000.000 Filipinos
who would gain their absolute and complete independence upon withdrawal
of American sovereignty over the Islands. "The United States," he said,
"hag promised to make the Filippinos free, and we should keep our word
without further delay." I believe there is a very substantial majority in
both Houses of the present Congress for Philippine independence.
Senator Bingham (Rep.). of' Connecticut, Chairman of the Senate Committee on Territories and Insular Affairs,recently stated orally that Congress
Is likely to pass an independent bill and Representative Knutson (Rep.), of
Red Cloud, Minn., has stated his advocacy of independence legislation.
Whether President Hoover would sign or veto an independence bill has been
discussed by some of the Members of the two Houses.
General Smuts Says South Africa Must Quit Gold
Standard.
An Associated Press cablegram from Johannesburg, South
Africa, Dec. 18 is taken as follows from the New York
"Sun" of last night:
Gen. Jan Christian Smuts, former South African Prime Minster, warned
the South African party to prepare for an early general election. . .
"If there is one lesson more than any other is to be learned from the
present crisis, it is that we are not economically independent and that
our lot economically is with the British market." he said.
Departure from the gold standard would mean an immense move forward in the Rand mining area, Gen Smuts said. The cost of operating
the mines would be reduced, resulting in increased workings, a prolongation of the life of the mines and increased expenditures.
By the abandonment of the gold standard "we shall enter a new era
O( expansion instead of staring into a blank future of gradual and painful
extinction of this great center of population," he concluded.
New Zealand Treasury Bills Allotted.
The "Wall Street Journal" of Dec 16 reported the
following from London:
The 14.000.000 six months New Zealand government treasury bills
were allotted on Tuesday at an average discount of
3s. 3.61d%.
House Passes Bill Amending Federal Farm Loan Act
to Provide $100,000,000 Additional Capital for
Federal Land Banks—Report by Representative
Steagall.
In accordance with the recommendation in the annual
message of President Hoover, and likewise in the annual
report of Secretary of the Treasury Mellon, a bill amending
the Federal Farm Loan Act so as to provide $100,000,000
additional capital for the Federal Land Banks was passed
by the House of Representatives on Dec. 19 by a viva voce
vote. All amendments were voted down, and a motion to
recommit was rejected by a vote of 192 to 165. According
4253
to a Washington dispatch, Dec. 19, to the New Yotli
"Times," the bill was carried after the conservative Republicans, joined by several Democrats, including the Tamuuto
delegation, defeated by a vote of 195 to 160 a farm WM"
amendment provided for a one-year moratorium on all u13paid loans held by the Federal Land Banks. The same
account said:
The offering of the amendment was generally regarded as a gesture by
Representatives from farm districts to satisfy constituents who might criticise
yesterday's adoption of the foreign debt moratorium.
One clause in the bill, however, permits the Land Banks, at their ale,
cretion, to spread out over the next five years payments on farm loans dtte,
which cannot be met.
From the "United States Daily" of Dec. 21 we take the
following:
The bill now goes to the Senate.
The motion to recommit, made by Representative McKeown (Bern.), of
Ada, Okla., would have carried with it instructions that the bill be amended
so as to provide a mandatory moratorium on mortgage payments.
In accordance with assurances of House leaders given President Hoover at
the White House on Dec. 18, it was the special program for the day and
IlL, bad
the majority leader, Representative Rainey (Bern.), of Carrollton,
over
promised to hold the House in session so the bill could be speeded
to the Senate before the holiday recess.
Mr. Steagall explained the provisions of the bill, what it is expected to.
accomplish, and outlined the history of the measure.
Representative Luce (Rep.), of Waltham. Mass., said the proposal I.
frozen assets in
the first move Congress has made toward the freeing of
the bill may
the country. However, he suggested, the extension clause of
Banks.
endanger the security of the bonds of the Federal Land
Aid for Man in Distress.
theRepresentative Stevenson (Dem.), of Cheraw, S. C., in advocating
the bonds of
measure, said its passage would aid in keeping up the prcie of
extension
the Federal Land Banks. He said the bill would give reasonable
control the
of aid to the man in distress, and that it does not attempt to
directors of the Federal Farm Loan Board,
support
Representative Ramseyer (Rep.), of Bloomfield, Iowa, advocated
stabilizing com.-)1 proposals which have been introduced with a view to
commodity
modity prices. He said that unless a way is found to elevate
and posailileprices this country will be in for a long period of distress
social change.
The bill before the House, Representative Strong (Rep.), of Blue Rapids.
defense
Hans., told the House, is part of the general program of national
farm land in
against financial disaster. The mortgages on some of the best
in normal times'
the country are behind in payments, he said, even though
condition are in
they would be good security. Now farmers in such a
confidence.
distress and the bill would relieve that distress and restore
to their
The measure, he said, would keep Federal Land Bank bonds up
them.
of
back
in
sound
high standard and will put something
Emergency Relief Provision.
loans, Mr.
Section 4 of the measure, which provides for extensions of
distressed.
Strong said, is solely to make possible, in emergency, relief for
thefarmers. If an out-and-out moratorium were permitted to borrowers,
Federal Land Bank System would be wrecked, Mr. Strong asserted.
he
although
said
Representative Hooper (Rep.), of Battle Creek, Mich,
financial
is not optimistic enough to believe the bill would bring about
conficleace
relief, it might be a contributing factor to restoration of
throughout the country. He said he believed this Is an "experiment," bet
one which is in the right direction.
Representative Busby (Dem.), of Houston, Miss., for the Immure, said,
not
that when agriculture fails the nation is in peril. He said banks do
,
fail unless the communities surrounding the banks become distressed:
by
The provision for extension of mortgage payments was criticized
Representative Beedy (Rep.), of Portland, Me., who said it would remit in
payments On
all the affected borrowers attempting to have the time of
their loans extended. Although approving the rest of the bill, Mr. Beedy
soundasserted he believes the extension provision may prove harmful to the
doing
ness of the Federal Farm Loan System. Be said the banks are now
everything possible to prevent foreclosures while at the same time keeping
the price of their bonds as high as possible.
Representative Hancock (Dem.), of Oxford, N. 0., said be believes the.
measure would "avert a calamity" in this country just as the adoption of
the moratorium proposal will "avert a calamity" in Europe. Wholesale
foreclosures on farm mortgages would precipitate a 'serious disaster, Mr.
Hancock stated. He pointed out that the reason the extension clause does
not take the discriminatory powers from the Federal Farm Loan Boar&
is becatke to do so would be departing on a policy which may endanger
the soundness of the banks. "Section 4 gives the borrowers from the
Federal Land Banks the same rights the Administration is trying to give
to the borrowers of other banks," Mr. Hancock said.
Questions Benefit to Farmers.
Representative LaGuardia (Rep.), of New York City, declared that the
farmer will receive "absolutely no benefit" from this bill, but that ordy,
the bondholders would be aided. He said the bill proposes that the Federal
Government lend $100,000,000 to the banks without interest. If the uks
is to help the farmer, why not lend this $100,000,000 directly to the
farmers without interest so that they can meet their payments on loans
made from the land banks at a high rate of interest.
Representative Sumners (Dem.), of Dallas, Tex., told the HMI* that
debts cannot be paid by borrowing more money. He said he does net
believe that the purposes which the sponsors say will be accomplished will,
be achieved.
Representative Swing (Rep.), of El Centro, Calif., said the measure
before the House would be a guiding stick for the bankers of the country
so that they would act in a similar manner. He said the proposal wend&
not receive his support except for the fact that the present situation is
abnormal.
The bill came to the House with the support of a favorable recommenastion from the Committee on Banking and Currency, of which Mr.
Stea
(Dem.), of Ozark, Ala., is Chairman. "The Federal Land Bankst
confronted with difficulties which have affected the market for their bonito
in
banks
conducting
transactions
the
of
wItit
officials
the
hampered
and
borrowers," the report, prepared by Mr. Steagall and made public Dec. 19,
stated. "The Banks obtain funds with which to supply loans to farmers
4254
by the sale of bonds for which the entire 12 Banks are jointly liable. The
law provides that bonds sold by the Banks shall be secured by mortgages
of the borrowers. Some of the Banks have found themselves in a situation
. where they are not in position to maintain the requisite mortgage security
to support their bonds. The bill seeks to supply the Banks with funds to
enable them to meet payments on bonds and to make additional loans without being forced to foreclose mortgages in cases where it is not desirable
to do so.
"Section 1 of the bill authorizes the appropriation of the sum of $100,000,000 out of the Treasury of the United States to be advanced by the
Secretary of the Treasury upon request of the Board of Directors of any
Federal Land Bank made with the approval of the Federal Farm Loan Board
to be called for upon 30 days' notice, any sums thus supplied to any Bank
to be covered by stock of such Bank to be issued to the Treasury.
"The stock subscribed by the Treasury in any bank is to be reimbursed
to the Treasury from time to time as its capital stock passes into the
hands of borrowers.
"The original Federal Farm Loan Act provided for subscriptions by the
Government in the amount of $750,000 to each of the Federal Land Banks,
and the Government subscribed to the capital stock of each Bank accordingly. Under the original Act each borrower is required to take 5% of
his loans in capital stock, and the amount of the initial capital stock
acquired by the Treasury was repaid as fast as the capital stock subscribed
by the borrowers was sufficient to absorb it.
"The bill also authorizes the directors of any Bank, with the approval of
the Federal Farm Loan Board, to pay off and retire at par, in whole or in
part, out of any available resources of such Banks the capital stock
subscribed by the Treasury. All money paid into the Treasury for retiring
such capital stock held in any Federal Land Bank is to remain in the
Treasury and to be available again for the purchase of capital stock in
any Federal Land Bank as provided in the bill (Sec. 1).
"It is thought the sum of $100,000,000 will be sufficient to replenish
the capital of the Banks to make practicable the operation of the Banks as
contemplated by the Federal Farm Loan Act.
"The Federal Land Banks have, in round figures, outstanding capital
stock of $65,000,000. The total bonded indebtedness is $1,172,478,700.
The mortgage indebtedness to the banks amounts to $1,171,699,700, representing 408,000 first mortgages. The interest on bonds of the banks is
payable semi-annually, and the interest rate charged borrowers cannot
exceed by more than 1% per annum the rate borne by the bonds of the
bank making the loan.
"The 12 Federal Land Banks, on Nov. 20 1931, showed 76.5% of the
loans were not delinquent; 121
/
2% of the installment payments on mortgages
were delinquent less than 90 days, and 11% were delinquent over SO days.
"If the Banks can obtain funds that will make possible refunding of outstanding high-rate bonds, it will enable them to obtain funds at a lower
rate, which, in turn, will be reflected in the rates charged borrowers.
"There has been only one sale of bonds since 1928, and that was for
the amount of $20,000,000 on short-term bonds.
"Section 2 of the bill merely requires that each Federal Land Bank shall
carry to its reserves account semi-annually 50% of its net earnings until
such reserves shall equal its outstanding capital stock before paying any
dividends. After the reserves of any Bank shall equal its capital stock,
only 10% of the net earnings is required to be added to the reserves
account.
"Section 3 provides for building up the reserves of national farm loan
associations by requiring that 20% of the net earnings of any association
shall be added to its reserves until the same shows a balance equal to its
outstanding capital stock before any dividend shall be paid.
"Section 4 of the bill provides that installments on martgages that are
unpaid may be accepted in equal amounts over a period of five years to be
paid at the time of paying regular installments to become due. The section
seeks to authorize the officials of the Banks to handle foreclosures in a
common-sense way to promote the interest of the Bank and avoid arbitrary
foreclosures, working unnecessary hardship upon borrowers.
Senator La Follette Introduces Measure to Create
National Economic Council—Bill Provides for
Group of Nine Members With a Salary of $15,000.
A bill (S. 2390) to establish a National Economic Council
was introduced in the Senate Dec. 22 by Senator La Follette
(Rep.), of Wisconsin. Introduction of the bill follows a series
• of hearings by a subcommittee of the Committee on Manufactures to determine the advisability of creating such a
Council. The United States "Daily" of Dec. 23 from which
we quote, wont on to say:
. Under the terms of the proposed measure the Council would be composed
of nine members to be appointed by the President, the group to Include
"at least one expert on each of the following matters: Industry, finance,
transportation, labor relations, agriculture and scientific management."
Selection of the individual members, whose appointment must be approved
by the Senate, is to be based on their acquaintance with National economic
problems.
Terms of members are to be for four years with an annual salary of
$15.000 a year. An annual appropriation of $500,000 for the council would
be authorized.
Provisions of Bill.
The bill provides specifically that the council:
"1. Shall keep advised with respect to general economic and business
conditions in the United States;
"2. Shall consider problems affecting the economic situation of the
United States and its citizens:
• "3. Shall endeavor to formulate proposals looking to the solution of
such problems;
"4. Shall make an annual report on or before the first Monday of December
to tho President and to the Congress, together with its recommendations,
If any, for necessary legislation or for other action;
Separate Reports.
"5. Shall, from time to time. as it deems advisable,submit reports dealing
with particular economic questions, together with its recommendations, to
the President. to the Congress, and to the appropriate economic association,
councils and organizations interested in such questions, and;
- "G. Shall initiate the organization of councils or associations within the
various major branches of production, distribution and finance to consider
economic questions affecting their operations."
The Council would be authorized to make such investigations as it deems
necessary. The bill provides, however, that "it shall be unlawful for any
[vol.. 133.
FINANCIAL CHRONICLE
member of the Council, or for any officer, employe, or agent thereof, or
any other officer or employe of the United States, to divulge, or to make
known any person, firm, co-partnership, corporation, or association embraced in any examination or investigation conducted by the Council."
Wisconsin Senate Rejects Bill Embodying Senator La
Follette's Proposal to Stabilize Employment and
Industry.
A bill embodying the La Follette-Progressive party's
proposals for stabilizing employment and industry was
defeated in the Wisconsin Senate on Dec. 22 by a vote of
15 to 14. Associated Press accounts also said:
The measure provided that a State industrial commission be empowered
to regulate hours of work when unemployment threatened.
Industrial leaders opposed the bill on the ground that it would permit
"unsound interference at this time with the prerogatives of industry to
meet its own problems."
Depreciation in New York City Bank Stocks.
Extent of the depreciation in the prominent individual
New York City bank stocks from 1929, 1930 and 1931 highs,
respectively, to the record low prices in the week ended Dec.
19 is shown in a tabulation issued at the close of the market
on Dec. 19 by the bank stock firm of Monahan, Schapiro
& Co. They state:
The average depreciation of these stocks from the 1929 record high
prices has been approximately 85%,a decline which has raised the yield in a
little more than two years from 114% to 10%. Market values have ranged
recently from 10 to 30% below actual book values, whereas in 1929 market
values were as high as 350% above book values. Much of the decline in
the last three weeks is accounted for in part by the firm as due to "indiscriminate and hasty selling."
The tabulation, which is the first to show the individual record of depreciation for the period of the depression, follows:
Bankers
Brooklyn Trust
Chase
City
Chemical
Central Hanover
Corn Exchange
Empire
First National
Irving
Manhattan
Manufacturers
New York Trust_ _
Public
U.S. Trust
Guaranty
1929
High.
1930
High.
1931
High.
At Lows
of the
Week.
261
1,500
285
585
155
530
450
135
8,600
104
275
360
490
335
4,800
1,205
184
950
182
259
9.5
415
260
110
6,550
75
157
157
330
165
4,500
870
126
570
110
110
53
280
137
62
4,150
45
97
56
194
71
3,200
572
4934
165
25
3434
2334
108
56
19
1,625
15
2334
28
69
1914
1,475
246
Per Cent Per Cent
Depre- Depredation cloCion
1929
1931.
High,
80%
89%
91%
94%
85%
80%
88%
85%
81%
86%
91%
92%
86%
94%
70%
80%
60%
71%
77%
69%
56%
61%
59%
69%
61%
67%
76%
60%
64%
73%
54%
67%
President Whitney of New York Stock Exchange
Declares That Liquidation, Not Short Selling, Is
Responsible for Decline in Security Prices—Again
Defends Short Selling.
Before the Syracuse (N. Y.) Chamber of Commerce on
Dec. 15, Richard Whitney, President of the New York
Stock Exchange, again discussed short selling, and in its
defense declared "it is not short selling but liquidation
which has been responsible for the decline in security prices."
An earlier address by Mr. Whitney on short selling, delivered in Hartford, was referred to in our issue of Oct. 17,
page 2550. In our issue of Dec. 19, pages 4044-4048, will
be found statistics on short selling made available by the
Stock Exchange. Mr. Whitney's address at Syracuse on
Dec. 15 was delivered under the head "Short Selling and
Liquidation." The address in part follows:
I cannot help feeling that the criticism which has been leveled at short
selling has been due, in large measure, to the desire of the public to find
some simple explanation for the tremendous declines which have taken
place in the prices of stocks. I am firmly convinced that the real explanation lies in the worldwide disturbance of our business and credit conditions. It is not any single factor, like short selling, but the combination
of many more important and basic factors which has brought about the
result.
The Exchange for many years has taken the position that short selling
is a necessary part of an open market for securities. Wo have always
said that in a crisis buying by short sellers would servo to maintain an
orderly market. These statements were not based merely on theory.
They were the result of the practical experience of the Exchange during
the last hundred years and they were supported by the experience of the
older market places of Europe. During the last year, when short selling
was attacked so violently, the Exchange, In order to have the
fullest Possible Information on the merits of the question, required its members to
report their actual short positions at different periods. From May 25
of this year to Sept. 21 these reports were made on approximately a weekly
basis. Since then the reports have been made daily. In my address at
Hartford I gave some of the statistics which were derived from these
reports. The Exchange since that date has prepared detailed figures in
regard to the short positions, including not only the totals for each
day, but also separate totals for each stock. A study of these statistics
is so illuminating that the Exchange has decided to make them public,
and they will shortly be furnished to the press. I warn you that the
figures are voluminous and will prove of more interest to statisticians
than to the average person. Nevertheless, we shall publish these facts
as the best proof of the necessity of short selling and the best refutation
of the charges against it.
I cannot in a speech give you many of these detailed figures. You
may be interested, however, in knowing that on Nov. 24 the total short
DEC. 26 1931.]
FINANCIAL CHRONICLE
4255
position was 3,584,161 shares or slightly more than 2,000,000 shares below Russia. The breakdown of reparations payments by Germany, and the
the peak figure which was reached in the spring of this year. On the same resulting moratorium, has affected not only this country but many of
date the number of separate accounts having short commitments was our former allies. England and several other European countries have
12,254, so that on the average each of these accounts was short less than none off the gold standard. South American nations, with few exceptions, have defaulted in the payment of interest upon their external ob300 shares.
If it is true, as so many critics have asserted, that short selling smashes ligations which are held throughout this country and Europe. The maPrices then certainly one would expect the stocks with the largest short chinery of government in Australia has been on the verge of collapse.
Interest to show the widest fluctuations and the greatest declines. The There have been revolutions in Spain, serious disturbances in India, and
figures prove that this assumption is entirely false. Altogether there were the possibility of a great war in China. Each one of these factors would
only 15 stocks which at any time since May 25 have had an individual have been sufficient to disturb confidence in the value of securities. Taken
short interest of over 100,000 shares. Of these 15 issues, only two had collectively, their force was irresistible.
The security market has only reflected world conditions and yet there
a short interest which was consistently in excess of 100,000 shares eachlj
and only six have always had a short interest of more than 50,000 shares is confusion and misunderstanding, one reason perhaps being that it has
reacted
more quickly to the depression than other lines of business or
which
everyeach. These 15 stocks, curiously enough, are the very ones
body will admit have had the steadiest market and the narrowest price industry. By its very nature, a security market must reflect existing
fluctuations. The greatest short interest in any single stock at any time conditions more rapidly than business which is often carried along for
was 406,000 shares in General Motors. This figure may seem very large considerable periods of time by inertia. Existing contracts also tend
but you must remember that General Motors has 43,500,000 shares of to keep business in operation, even after it is clear that additional orders
common stock and, therefore, the short interest was actually less than 1% will not be forthcoming. With securities, however, the effect of a busiof the total capital of the company. If you examine the price fluctuations ness disturbance is immediate and liquidation takes place much more
of General Motors you will find that in the whole course of the year 1931 rapidly than in other lines. Let me remind you that brokers' loans at
its high price was 48 and its low price slightly above 22. This is a de- the highest point in 1929 were almost exactly 88,500,000,000. On the
preciation of a little more than 50%. There are many other stocks, as first of December of this year they were only about $730,000,000. This
we all know only too well, that show a greater percentage of depreciation. indicates a shrinkage of more than 91% and gives some idea of how draaFurthermore, the market action of General Motors has been consistently tically the stock market has been liquidated. When you consider that
steady. Great quantities of the stock have been bought and sold and this decline in the amount of brokers' loans has necessitated the selling
yet it has normally moved by small degrees either upward or downward. of long stocks it is little wonder that prices have fallen to their present
It is hard to believe, in view of these facts and figures, that the critics low levels. It is not short selling, but liquidation which has been responof short selling are justified in saying that this practice smashes prices. sible for the decline in security prices.
In this connection, let me point out what a small part short selling
Let us look now on the other side of the picture and observe the issues
which have had a very small short interest or no short interest at all. has actually played in the stock market. Since May 25, when the ExOut of the 15 stocks which have experienced the greatest decline in per- change first commenced to collect regular statistics in regard to the short
centage of value since May 25, none had any sizable short interest at any Interest, down to Nov. 30 of this year, the total short position actually
time, while four never had an individual maximum short interest of more declined by about 1,850,000 shares. Yet in this same period the total
than 100 shares and all of them at times had no short interest whatever. number of transactions on the Exchange amounted to 264,300,000 shares.
Incidentally, out of the 15, three were preferred stocks. Of the 15 stocks Assuming that the daily "in-and-out" transactions of short sellers should
that, in the same period, showed the greatest decline in point of dollars be computed at 5%, which is more than it has averaged during the last
per share, only three had any considerable short interest at any time; two months,this type of trading could not account for more than 13,200,000
five never had a short interest of over 100 shares and 11 at different times shares. There would then remain 251,000,000 shares, or 95% of the total
had no short interest whatever. Of these 15 stocks eight were preferred sales accounted for, with no allowance for the shrinkage which actually
took place in the short interest. In other words, during a period of steadily
Issues.
The statistics I have referred to show the total short position existing declining prices, short selling amounted to less than 5% of the securities
at the end of each business day. Some critics have pointed out that the sold. To say that this 5% was the cause of the decline is to ingore ensize of the overnight short position does not reflect the short sales made tirely the effect of the 95%, which represented the sale of securities owned
and covered the same day. This is of course quite true, and it is a per- outright or held on margin.
The unwillingness on the part of the public to buy securities has been
fectly legitimate criticism of our figures. But it is no proof at all that
enormous daily "in-and-out" short transactions have been responsible the real trouble with our market and the cause of declining prices. That
were no willing buyers is easily explained by prevailing business
there
comfor smashing stock prices. Since Sept. 26 the Stock Exchange has
piled the total number of shares which have been sold short and covered conditions. I do not doubt that many of you have said to yourselves in
the same day. At their maximum, these "in-and-out" short sales have recent times that such and such a stock looked cheap or that it was selling
never exceeded 10.41% of the total daily sales on the Exchange. For at an absurd price and yet you hesitated to buy. This was because you
the period from Sept. 26 to Nov. 30 they averaged 4.75%. I know these were not sure that the worst was over and you still expected that the
figures will seem surprisingly small to those who have read repeated state- next day might bring forth bad news. Confidence is bound to return,
ments about the destructive activities of professional traders. The truth, and when it does, prices will rise. I feel that the basic causes of the depression have been intelligently studied and that in all quarters of the
however, is often stranger than fiction.
There is still another factor which should be considered in interpreting world responsible people are working towards constructive ends. I have
our figures. It is entirely possible for one short seller to sell short on no doubt of their ultimate success, and I have supreme confidence in
Monday and to cover on Tuesday by purchasing from a new short seller. the future of our country and its great business and industrial organizations.
In conclusion, let me repeat that the Exchange is a market place. It
In this case, the short commitment of the first man would be replaced
by the new short sale of the second man and in consequence the figures does not make prices not should it be a party to any arrangement or scheme
for the short interest would not change. On the other hand such a sale to affect prices. If a market place for securities is to fulfill its function
would not be reflected in the compilation of the "In-and-out" daily short In the economic order of things, it must fairly and honestly permit the
selling. Just how extensive short sales of this sort have been no one can forces of supply and demand to determine prices. The Exchange, as an
state with accuracy, and unfortunately it would take an enormous amount Institution, must be impartial. It cannot for expediency or convenience
of work to analyze the millions of separate stock market transactions assist prices to rise when they are low or depress prices when they are high.
which occur even in a dull market. However, in testing the influence of We are all anxious to see prices rise; to see business become normal and
this factor on prices, let us remember that the covering purchase by the prosperity return, but if the officials of the Exchange allow their perfirst short seller neutralizes the new short sale, and prices therefore are sonal wishes to influence their judgment they will be false to their trugt.
It is because the Exchange knows that short selling is an essential
not influenced by these transactions.
Finally, I will cite an instance of how people have been misled by the part of a market for securities that it defends the practice and stands
circulation of unjustified guesses in regard to short selling. A financial firmly against the restriction or impairinent of it, directly or indirectly.
writer on a metropolitan journal, alluding to the market of Oct. 28, de- This is not a hasty nor an arbitrary conclusion, but is based upon the
Exchange's long experience and upon the definite facts and statistics
clared:
Yet, in responsible quartersi was stated that several stocks had been which our recent investigations have produced. In the light of this knowlI was t Id, re- edge our duty is plain and we must oppose attempts to cure present conunder heavy short pressure. A canvass of specialists.
vealed that approximately 80% of the selling in Ncrth American was for ditions by unsound means. Insofar as the Exchange is concerned, the
short account; 60% of Consolidated Gas; 75% of the United Corp.; 80% defense of short selling is not
a matter of opinion, it is a matter of principle.
of United States Steel, and 70% of General Electric.
This article was promptly brought to my attention and to test the accuracy of this very definite statement I had a special investigation made Richard Whitney of New York Stock Exchange Outlines
of the short sales in these stocks. Treating all the "in-and-out" transacWorkings of Short Selling to Senator Fess-tions as short sales and adding to them the actual increase in the short
Proposed Inquiry by Senator Capper—Bill of
position on the day in question, I found that the short sales of United
States Steel had amounted to 24% as against the imaginary 80%; of
Senator Brookhart.
General Electric to 17% as against the supposed 70%; of Consolidated
In
the face of the prospect of an investigation by Congress
Gas to 10% as against 60%; of North American to 73.% as against 80%,
and of United Corp. to only 2;•6% as against the highly Imaginative 75%• on short selling on the New York Stock Exchange, Richard
This is a good illustration of the false statements and exaggerated rumors Whitney, President of the Exchange, explained in Washso frequently circulated concerning short selling. Misinformation of this
sort has been used, consciously or unconsciously, to build up a prejudice ington on Dec. 12 to Senator Simeon D.Fess what he termed
against short selling and has also been the basis of hasty and unsound the advantages of such sales and justified the practice. He
conclusions about this subject.
stated that 85% of the operations of the Exchange repreI do not wish to appear cynical, but it seems to me very doubtful if
even the most complete statistics will ever convince those who do not sented liquidation. The Washington account to the New
wish to be convinced. There is an old saying that you can lead a horse York "Times" also said:
to water but you cannot make him drink. It is always easy for people
The conference, which was regarded as of importance because of reports
to invent imaginary statistics as in the case cited above, and to assert here and in New York that an inquiry probably would demand the names
that the actual figures are meaningless when they do not support the of the short-sale operators, Senator Fess said, was informal.
writer's preconceived ideas. The statistics I have cited, both to-night
He had asked Mr. Whitney to discuss the situation so that he would
and on previous occasions, should prove to all fair minded people who be informed of the ramifications of short selling and their bearing upon
wish to know the truth that short selling is not a destructive force but a the depressing of• security values. The interview was not sought by
vitally necessary part of a security market. . . .
Mr. Whitney and he did not confer with any other political leaders.
The facts and statistics I have cited show that short selling has not
Mr. Whitney stated that he did not come here in reference to the rumors
smashed prices on the Stock Exchange. What then has brought about of an investigation and declined to discuss the reports. . . .
the drastic decline of security prices which has taken place in the last
"I asked Mr. Whitney to drop in when he came here," Senator Fess
two years? We all know we are in the midst of a business depression stated, "so that I might go over the situation with him and learn what
more severe than any within the memory of man and yet we do not seem the Exchange had done to check short selling and what it could do to
to understand why security prices have fallen so low. I think this is due effect reforms. I have read two or three speeches delivered by Mr.
Whitney
to the fact that the average man forgets very quickly the tremendous on the subject of short selling and I was greatly impressed with what
economic events which have occurred in the last two Years,
he said.
Starting with the recession of business activity in 1929 and consequent
"In New York they think short selling is all right and down here We
unemployment, we have successively seen a more and more rapid falling think it is an evil. I wish to determine In my own mind
whether an inAt
the
business.
same
time,
conditions in many nations of the vestigation by Congress into short selling is necessary or
off of
whether the
world have been chaotic. We all know what has been taking place in Stock Exchange will make such regulations as to bring an sod to
its evil'.
4256
FINANCIAL CHRONICLE
I am not opposed to an investigation. Certainly some sort of inquiry
will come on the Capper bills and other measures before Senate standing
committees.
"Unless the Stock Exchange does something to correct the practice
of short selling. Congress will take drastic steps in that direction, in my
opinion."4$
According to Senator Fess, Mr. Whitney thinks the Stock Exchange
has gone as far as it can toward correcting the faults of short selling.
"I see no evil in short selling," Mr. Whitney said after his talk with
'Senator Foss. "That has been my position, as explained fully, and I
-still find no reason to change it."
[Voi.. 133.
Added to the free list are the following issues:
Frontenac Breweries.
Abitibi 7% preferred.
Goulds Pumps.
Agnew-Surpass common and pref.
Intercolonial Coal.
Alberta Pacific preferred.
Maple Leaf Milling.
Amalgamated Elec. com. & pref.
Bathurst A. N. B. Grain preferred. Mexican Light.
Montreal Loan & Mortgage.
British Empire Steel 7% 2d pref.
Montreal Telegraph.
Canada Foundries & Forgings A.
National Brick.
Canadian Fairbanks-Morse pref.
Canadian General Elec. corn. & pref. Nova Scotia Steel.
Carriage preferred.
Port Alfred.
St. Lawrence Flour.
Dominion Iron & Steel preferred.
St. Maurice.
Dominion Steel preferred.
East Kootenay Power.
Simpson class A and B preferred.
Eastern Grocers.
Famous Players Canadian.
Foundation.
To place the local list on a common ground with the minimum prices
that still remain on a few stocks on the Toronto Stock Exchange, the
local committee has revised miMMUM prices here as follows:
From. To.
From. To.
12
10
Bell Telephone
Windsor Hotel
121
119
8%
8
Gypsum
B. C. Power, B
534
5
66X
Lake Woods, pref
Cement, pref
66
85
35
Steel Can
65
60
22
21,i Smelters
Capper Predicts Inquiry.
Predicting an inquiry, Senator Capper said to-day:
"It is time for the Government to step in and stop the vicious and menacing gambling in stocks and commodities which goes on in our great
markets and unsettles business and legitimate trade. I believe that
'legislation will be enacted by this Congress which will effectively regulate
-short selling and perhaps abolish it altogether.
"The short-selling game is now the biggest racket In the gambling market. Regardless of resulting distortion of values and the wrecking of
normal and wholesome conditions of commerce and industry, this practice
has its highest expression on the New York Stock Exchange and the Chicago
New Orleans Stock Exchange to Discontinue Trading in
Board of Trade.
"Those who defend short selling are those who profit by it, the ExBank Stocks.
changes perhaps most of all. The Government can stop it by law. The
The New Orleans Stock Exchange voted on Dec. 2 to
promises of these Exchanges to better these conditions have never been
kept. Undoubtedly the reason is that the markets are controlled by discontinue trading in bank stocks, it was stated, in an
the gambling element.
Associated Press cablegram on that date from New Orleans,
"In this time of depression, the stock market gamblers have frequently
attacked the nationally-owned securities of sound and successful busi- which also said:
An official statement said that while "all stocks of every character have
nesses, and at the same time have exerted a destructive influence beyond
naturally declined in value" without effect upon the operations of the corpoestimate on the prosperity of the country.
rations
which they represent, "in the case of banks corresponding material
Congress,
shown
the
evils
of
and
short selling
"The last three years have
In my opinion, is prepared to enact legislation that will regulate short declines in stock quotations might have a harmful effect which would
be undeserved."
selling or prohibit it altogether.
Watson Expects Legislation.
Senate Resolution Asks Investigation of Operations
Senator Watson Is confident that the Senate will consider regulatory
of Cotton Exchanges.
'legislation and that the Stock Exchanges face an investigation.
"It is the belief of many." he said, "that we shall not recover from our
In its Dec. 23 issue the "United States Daily" said:
present depression until transactions of this kind are either prohibited or
A resolution (S. J. Res. 63) to investigate certain operations on the cotton
are greatly curtailed or properly safeguarded in the public interest."
exchanges was introduced in the Senate Dec. 21 by Senator Sheppard (Darn.)
'Inquiry into the operations of the Stock Exchanges and the Chicago of Texas. The resolution, which is a duplicate of one introduced by the
Board of Trade is favored not only by the Progressive bloc, but some Texas Senator last session, would direct the Secretary of Agriculture to
conservative Senators. Senator Glass, ranking minority member on the make an investigation through the Grain Futures Administration of the
Committee on Banking and Currency, while not insistent upon an inves- decline in cotton since 1926, the amount of short selling and other factors
tigation will push with vigor his bill to tax short sales in the hope that related to the situation. It would appropriate $75,000 for the purpose of
excessive taxation will bring an end to the practice.
the investigation.
Any inquiry into short selling probably will be made by the Senate
Finance and Banking and Currency Committees on bills now pending.
Studebaker Sales Company Offers Free to Buyers of
and probably will include not only short selling, but future selling on the
Used Cars, Shares of Stock Listed on New York
commodity exchanges. Some conservative Senators said to-day that
they were opposed to such an inquiry as it probably would cause a greater
Stock Exchange,
depression of the market and lead to no good results.
A Chicago dispatch Dec. 19 to the New York "Times"
There are four bills now before Senate committees. Two are before
the Committee on Banking and Currency. Senator Glass has revived his stated that the Studebaker Sales Co. of Chicago offered that
proposal to tax stock sales made within 60 days. 5%, while Senator Capper day as an inducement to prospective buyers of 26 used cars
has a bill to authorize the Trade Commission to regulate short selling and
In certain conditions prohibit it. Another Capper measure now before from 10 to 100 shares of stock listed on the New York
the Finance Committee imposes a tax of 25% on the profits of short selling. Exchange free with each purchase. The dispatch added:
The most drastic move to stop short selling Is proposed by Senator
The stocks include Alleghany Corp., Grigsby-Grunow, Wabash By.,
Brookhart of Iowa, who has reintroduced his bill prohibiting the use of Remington-Rand. Curtiss-Wright, Armour A. R-K-0 and Chicago, St.
the mails, telephone and telegraph for short sale transactions.
Paul & Milwaukee Ely.. which formerly ranged from $18 to $82 per share.
To the purchasers of a Chevrolet coach, reduced to $65, are to be given
10 shares of Grigsby-Grunow, formerly $70 a share, while with a 1931
Resolution Introduced in United States Senate for Studebaker free-wheeling President Eight sport roadster,reduced to $1,695,
18% a share.
„ Canadian As Member of Federal Reserve Board— are to go 100 shares of Armour A,formerly
The promoters point out that if the stocks rise to anywhere near their
Would Also Stabilize Canadian Currency at Parity former value the purchaser will not only get his car free, but a substantial
premium In addition.
with That of Unitec‘States.
The offer expires at mid-night, Dec. 24, and is good only at the main
The following is from the "United States Daily" of Dec.22: office of the Studebaker Sales Co.
Canada
to
negotiations
with
name
a
reprofor
118)
The company's advertisement asserts that every car in the offer has
A resolution (S. Res.
-sentative of the Canadian Government as a member of the Federal Reserve been reduced in price 25 to 50% and that Ti heral time payments are provided.
Board of the United States and to provide for stabilization of the currency
of Canada at a parity with that of this country, was introduced in the
Stock Exchange Inquiry Requested in House.
Senate Dec. 21 by Senator Kean (Rep.), of New Jersey.
The resolution, which was referred to the Committee on Foreign RelaAccording to the "United States Daily" of Dec. 23 an
tions, follows in full text:
the causes of the prevailing industrial
Resolved, That the President of the United States is requested to enter investigation of
with a depression particularly with references to the collapse
of
into negotiations with the Government of the Dominion of Canada
terms
view to the conclusion of a treaty with that Government, under the
appointed by prices of securities dealt in on the New York Stock Exchange
Canada,
of
Government
the
of
representative
(1)
a
which
of
Parliament, shall with a view to preventing a recurrence of such a situation
the Governor General, with the consent of the Canadian
United States, and would be ordered by a resolution (H. Con. Res.6)
be a member of the Federal Reserve Board of the
introduced
of Canada
(2) provision shall be made for the stabilization of the currency
by Representative Keller (Dem.), of Alva., Ill., Dec. 21.
States,
the
United
currency
of
standard
similar
the
with
value
.at a parity of
A similar measure (S. Con. Res. 5) was introduced in the
and for the maintenance ofsuch parity.
Senate by Senator Walsh (Dem.), of Montana.
Gold
Canadian
of
Back
in
Reserve
Increase in Gold
Market Value of Bonds Listed on New York Stock
Notes—Exceeds Statutory Requirements.
Exchange—Figures for Dec. 1 1931.
said:
Ottawa
Press advices Dec. 19 from
On
New York Stock Exchange issued the Dee.1
Dominion
Dec.
9
the
Department of Finance statement shows its gold reserve behind
notes on Nov. 30. at $87,262,035. was $1,361,815 In excess of statutory pre-release of the total market value and the average market
requirements. Gold held against savings bank deposits was $2,427,181, price of all listed bonds as follows:
comparing with $75,245.534 total on
making total gold held $71,051,033,
Oct. 31.
Amount of Dominion notes in circulation on Nov. 30 was $197.262,036.
Including $148,201,000 legal tender notes for banks,these notes being $1,000,
$6,000 and $60,000 denominations.
Montreal Stock Exchange Removes Minimum Prices
from Number of Stocks.
Canadian Press dispatches from Montreal, Dec. 22 stated:
By the elimination of a group of stocks that have been inactive a long
time. the Montreal Stock Exchange to-day made its first move to free the
listings of the minimum-price restrictions which have ruled since Sept. 21.
These issues are to be placed on the free list. The pegged prices for others
.ssore active have been revised downward.
As of Dec. 1 1931 there were 1.602 bond issues aggregating $52,647,476.192 par value listed on the New York Stock Exchange, with a total
market value of $39.512,398.607.
In the following table listed bonds are classified by governmental and
Industrial groups, with the aggregate market value and average price for
each.
Market Value.
United States Government
Foreign Government
Railroad Industry (United States)
Midas (United States)
Industrial (United Staten
Foreign companies
ALI bonds
Argo. Pries.
$15.066,545,304
10.025,889.759
7,300.951.987
3.261,376.066
2.512.096.588
1.346.638.916
$99.31
60.88
67.49
86.78
67.84
51.19
$39,512.39.3.607
$75.19
DEC. 26
From the December "Bulletin" of the Exchange the
following is taken:
DATA ON LISTED BONDS-ALL LISTED BONDS.
No. of No. of
Issuers. Issues.
Average
Price.
Par Value of
Listed Bonds.
824
824
Dec. 1 1930
837
1,609
95.74
50.094.547,694 47.959.730,628
1931
1931
1931
1931
1931
1931
1931
1931
1931
1931
1931
838
836
837
835
835
836
839
842
842
840
841
nAn
4MC,
,
t-,400000000,
000.-0000000C
0.000,0=4,0.0,4
94.63
95.32
95.53
95.42
94.84
93.67
94.77
93.14
91.09
81.70
79.28
50.072,879.897
49.881.922.059
50,108.876,486
50.788.506.210
50.911.768,944
50.848,575,244
51.848,247.978
51.938.698.878
51.949.752.078
52,671.359.575
52.599.179.992
'7, In
KO Fal,,,,a Ino
1
1
1
1
1
1
Jan. 1
Feb. 1
Mar. 1
Apr. 1
May 1
June 1
July 1
Aug. 1
Sept.!
Oct. 1
Nov.1
r)...., 1
1925
1926
1927
1928
1929
1930
1021
Out-of-Town.
New York City.
Year.
1.332
1.367
1,420
1.491
1.534
1,543
Jan.
Jan,
Jan.
Jan.
Jan.
Jan.
The following compilation, comparing the number of members and the
number of firms in New York City and out-of-town, over the period since
1880, shows the constant growth in the number of out-of-town members
and firms. The figures are as of Jan. 1 of each year.
Total Market
Value.
000000
v.i”666:4
Date.
4257
FINANCIAL CHRONICLE
1931.]
535,457.811.674S33.611,817.346
36.995.089,533 35.509,211.458
37.900.053.650 37.167.607.468
36.881.320.122 36,874,717,458
48.588,549.854 47.379.028.502
49.058.099.434 46.892.458,780
47.384,805.889
47.546.190.092
47.869,817.155
48.463.021.490
48.282.336.086
47.629.698.234
49.132.895.753
48,375.745.828
47.318,973,356
43.031.447.232
41.702.539.146
Firms.
Members.
Firms.
Members.
Firms.
1,084
1.030
975
1,004
979
968
968
970
967
973
1.200
1,235
1.237
1,255
358
377
421
489
447
423
456
466
475
487
541
645
540
546
16
70
125
96
121
132
132
130
133
127
130
113
112
99
16
60
100
92
116
128
131
127
131
124
124
109
109
96
1.100
1,100
1.100
1,100
1,100
1,100
1,100
1.100
1.100
1.100
1,330
1.348
1,349
1,354
374
437
521
MI
563
551
587
593
606
611
665
654
649
642
1880
1890
1900
1910
1920
1925
1926
1927
1928
1929
1930
1930
1931
1931*
nn tto /nix an,
•
•
r
Transfer in United States of English Stock Taxable
on Basis of Par Value in Dollars-Ruling of Internal Revenue Commissioner Announced by New
York Stock Exchange.
Secretary Green of the New York Stock Exchange issued
the following notice on Dec. 22:
NEW YORK STOCK EXCHANGE.
Committee on Securities.
Dec. 22 1931.
To the Members of the Exchange:
I am directed by the Committee on Securities to call attention to the
following ruling issued by the Commissioner of Internal Revenue and
published in 1921 (0. D. 84. S. T. 3-21-199):
"Rate of exchange on transfer of foreign stock. The transfer In this
country of English stock is taxable upon the basis of its par or face value
in dollars as determined by the rate of exchange at the time and place of
the transfer."
ASHBEL GREEN, Secretary.
Total.
.lfembers.
* As of Oct. 1.
The following statistics also appear in the Year Book.
Ticker Tape Consumption.
The average consumption of ticker tape on a five-million-share day in
approximately 2,500 feet per ticker.
On Oct. 29 1929. when total sales amounted to more than 16.000,000
were
shares, approximately 80,000,000 feet or 15,000 miles of ticker tape
used on the stock tickers alone.
During 1929 when total sales amounted to more than 1.124,000.000
feet
shares. establishing a new high record, approximately 5.340,000.000
the stock
of ticker tape, or more than 1,000.000 miles, were consumed on
tickers alone.
High Records.
to
The greatest number of stocks to sell ex-dividend on a single day up
Oct. 11931. was 139 on Dec. 15 1926.
ExStock
The highest price at which a membership on the New York
change was posted for transfer up to Oct. 1 1930. was $625.000.
date was in
The largest volume of trading in stocks in any full year to
shares. The
1929 when the total turnover amounted to 1.124,608.910
shares and the
largest month was October 1929, with a total of 141.668.410
shares.
largest week that ending Nov. 2 1929. with a total of 43.499.540
shares.
The largest day was Oct. 29 1929. with a total of 16.410,030
was on
The largest volume of trading on a Saturday (two-hour session)
Saturday, May 3 1930, when the volume of trading amounted to 4,867,530
Year Book of New York Stock Exchange-642 Firm
Members Oct. 1 1931 Compared with 654 Firms
a Year Ago.
The 1930-31 edition of the New York Stock Exchange
Year Book containing statistical data and other important
information concerning the activities of the Exchange has
just been published. The new publication contains practically all of the data which was in previous editions, with
statistics and other material brought up to date.
Among other things, the new Year Book reveals that in
the fall of 1931 there were 3,855 partners in 642 firms in
New York and elsewhere throughout the country, and that
at the same time there were 1,398 branch offices, of which
220 were located in New York City, and 1,178 were out-oftown. These offices were in widely separated parts of the
country and abroad; namely in 337 cities, 44 States and
territories, six foreign countries, and aboard one transatlantic liner. A year ago there were 654 firms and 1,533
branch offices. Further information disclosed in the Year
Book is indicated as follows:
shares.
The largest volume of trading in bonds in any year was in 1922 when the
to
total turnover, as compiled by the Now York "Times," amounted
with a
$4.098,696.000 par value. The largest month was December 1919.
with
1929
total of $689,745,400, and the largest week that ending Dec. 27
with a total
a total of $151,620,200. The largest day was Dec. 30 1918
of $44,486,000 par value.
trading in
There were only 11 days prior to 1928 when the volume of
Dec. 21 1916,
stocks exceeded 3.000.000 shares. These were April 30 1901.
30 1926.
March
1926,
3
March
Nov. 10 1925. Nov. 13 1925. March 2 1920.
Oct. 4 1927, Dec. 2 1927, and Dec. 16 1927.
shares
The volume of trading in a single day never exceeded 4.000.000
Oct. 1 1931, the
prior to 1928. Since Jan. 1 1928. and up to and including
6,000.000
days.
on
77
shares
volume of trading has exceeded 5.000.000
shares on six
shares on 23 days. 7.000.000 shares on nine days. 8.000.000
shares on three days.
days, 9,000,000 shares on four days. and 10.000.000
Short Sales on New York Curb Exchange Sept. 23 1931
-Dec. 15 1931.
William S. Muller, President of the New York Curb
Exchange, issued a statement on Dec. 21 which disclosed
for the first time the scope of all operations on the short side
ia
ain that market, covering the period Sept. 23 1931, to, -aincluding, Dec. 15 1931.
Total volume of short sales follows:
Date.
Sept.23
Oct. 23
Nov. 23
Dec. 15
1931
1931
1931
1931
Shares.
129,542
91,344
54.596
53,258
Total Transactions During Periods.
10.206,884
September-October
5,761,939
October-November
5,997,545
Nov.-Dec. 15
The statistics show that the inactive stock department has grown during the past year so that on Oct. 1 1931. 321 different issues were designated
as "inactives" and traded in on a 10 share basis, as compared with 266 on
The statement also said:
trading
Oct. 11928. and 285 on Oct. 11929. and 310 on Oct. 1 1930.
Of the approximately 2,400 domestic and foreign stocks on the
The personnel records of the Exchange contained in the Year Book list of the Exchange, and which have a total par value of more than $14,reveal that on Sept. 1 1931, the Stock Exchange and its affiliated com- 000.000,000, only four securities had a short interest of more than 1,000
with
panies had a total of 2,429 employees.
shares as of Dec. 15 1931. These issues included. Cities Service
The record established during 1930 by the Quotation Department which 9.974 shares, Electric Bond & Share with 8.163 shares, Niagara Hudson
offices
by
direct
wire
to
on
member
securities
quotations
shares.
1.250
current
supplies
Power with 6.055 shares and American Superpower with
covered in
remained unchanged. On May 5 1930, this department answered a total
Inasmuch as 21.966.368 shares were dealt in during the period
unimportant
of 54.201 requests for such quotations.
the compilation, the figures plainly show the comparatively
the
of
edition
the
latest
the
Year
of
are
Book
,11,
1
,„Faaj,22
Among the new features
part short selling plays in the operations in Curb securities.
sections relating to the Medical Department, and to the New York Stock
Exchange Institute. In the case of the former the record shows that more
than 40,000 visits were received by Stock Exchange doctors during the
Widening of Powers of Comptroller of Currency Profirst 10 months of the year.
Further details regarding Stock Exchange membership are
taken as follows from the Year Book:
NEW YORK STOCK EXCHANGE MEMBERSHIP,
(As of Oct. 11931)
1,255
Number of members In New York
09
Number of members out-of-town
Total number of members of Exchange
Number of firms in New York
Number of firms out-of-town
Total number of Stock Exchange firm
Number of member partners New York firms in New York
Number of non-member partners Now York firms In New York
Total partners In New York
Number of member partners out-of-town firms
Number of non-member partners out-of-town firms
Number of non-member partners New York firms wIth out-of-town
addresses
(Total partners out-of-town
Po Total partners Stock Exchange firms
Extension of the powers of Comptroller of the Currency Pole over foreign
Columbia is sought
banking corporations doing business in the District of
in a bill revising and amplifying local laws relating to banks, trust companies and building loan associations drawn by the Comptroller's office and
642
introduced into Congress yesterday by Senator Capper (Rep.. Kan.).
In a memorandum accompanying the measure It was said that "some
foreign corporations doing a banking business in the District of Columbia
2,704 have very broad powers under their charters and. while as a general thing
they keep within reasonable bounds in their business, it is felt that for
the best interests of the public the Comptroller of the Currency should
have power further to regulate all such banking business if he deems it
necessary."
1,151
The bill provides for double liability hereafter for stockholders of all banks
3,855 doing business here. At present, it is explained, there is no provision for
1,354
546
96
829
1,875
96
382
673
vided in Bill Introduced by Senator Capper-Would
Amend Laws Affecting Foreign Banking Corporations.
From Washington Dec. 20 the New York "Journal of
Commerce" reported the following:
4258
FINANCIAL CHRONICLE
imposing such liability upon shareholders of a foreign corporation doing
business in the capital.
Control also is sought of foreign building and loan associations engaged
In business here.
Arthur Guy Reappointed Commissioner of Banks in
Massachusetts.
[VOL. 133.
that it comply with the above suggestion, that is, make demand upon Mr'
Wallace and the closed National bank upon which the check or cheeks were
drawn to return same through the regular channels as dishonored and
unpaid, giving them all of the necessary data and information regarding
each check so that it can be identified and traced. If you do not have such
data, I should be glad to furnish same upon request.
el I
To the end that the embarrassing and intolerable situation brought
about by the withholding of the payment of State checks drawn upon closed
National banks may be speedily adjusted. I am going to urge you to give
this matter your immediate attention.
The reappointment of Arthur Guy as Commissioner of
Banks in Massachusetts for a term of three years was
announced recently by Governor Joseph B. Ely. Commissioner Guy was sworn in on Dec. 16 by Governor Ely, Governor Harrison of New York Federal Reserve Bank
Before Senate Committee Urged Prompt Action
after his reappointment had been confirmed by the Executive
on Reconstruction Finance Corporation—National
Council under suspension of the rule by which appointments
Credit Corporation Not Accomplishing As Much
are usually deferred for confirming action a week. The
As Desired in Relieving Frozen Bank Credits-Boston "Transcript" of Dec. 16 reporting this added:
Views of Under-Secretary of Treasury Ogden L.
Commissioner Guy has been connected with the State Banking Department since 1913. He had been Deputy Bank Commissioner for a number
of years and succeeded to the office of Commissioner on Dec. 31 1930,
following the resignation of former Commissioner Roy A. Hovey. Mr
Hovey's unexpired term which Guy assumed when he became Commissioner
terminated on April 8 last and from that time Mr. Guy has retained the
office as a holdover.
Reports Received By New York Federal Reserve Bank
Regarding Commercial Paper Outstanding.
The following announcement was issued Dec. 24 by the
Federal Reserve Bank of New York:
Reports received by this Bank from commercial paper dealers show a
total of $173,684,384 of open-market commercial paper outstanding on
Nov. 30 1931.
The amount outstanding Oct. 31 totaled $210,000,000, as
was indicated in our issue of Nov. 14, page 3189.
Claim of Priority of State in Closed Banks Is Settled—
United States Comptroller of Currency Agrees to
Plan of Treasurer of West Virginia to Have Checks
Returned.
In its Dec. 16 issue the "United States Daily" said:
Mills and Senator Glass—National Credit Corporation's Loans $15,000,000.
On Dec. 19, George L. Harrison, Governor of the New
York Federal Reserve Bank, appearing before the Senate Sub-committee on Banking and Currency, urged
prompt action on bill providing for the creation of the Reconstruction Finance Corporation. A Washington dispatch
on that date to the New York "Times" went on to say:
He explained that the National Credit Corporation, representing a pool
of banking interests, could not be employed in the general situation and
had not done so much as desired in relieving frozen credit in the banks.
He said that the hanks associated in the pool had not been called upon
to pay their debentures in full because thus far aid had been furnished
to weak banks through loans.
Both he and Ogden L. Mills, Under-Secretary of the Treasury, said that
the formation of the National Credit Corporation had had a splendid
psychological effect in re-establishing confidence of depositors. Neither
witness, however, told the Committee how much money had been borrowed
to aid distressed banks.
Mr. Mills insisted that immediate need existed for the Reconstruction
Finance Corporation, saying that "if it is not created it will be a matter
of regret to every member of the subcommittee."
He agreed with Senator Glass that there would be no objection to excluding foreign securities as collateral for loans with the proposed corporation.
Senator Glass objected to the provisions in the bill which make paper
of non-member banks eligible for rediscount. On this point Eugene Meyer,
Governor of the Federal Reserve Board, said it was necessary to assist
Federal Reserve members as well as non-member banks.
Senator Glass replied that this was a dangerous practice, opening the
door of the Reserve System in respect to the rediscounting of paper and
even to unlimited rediscounting of government bonds. He declared that
the "Federal Reserve System was organized to respond to demands of
commerce and Industry," and not to make investment securities eligible.
The rediscount privilege, he said, had already been "frightfully abused."
Mills Against Federal Bond Issue.
Senator Bulkley of Ohio expressed the opinion that the Government
might as well issue its own bonds to raise the money for the Corporation.
This was disapproved by Mr. Mills who said it would complicate the
Treasury's bookkeeping system and that it was most desirable that the
"Corporation should be under distinct and outside management with its
securities guarded by the Government."
Senator Bulkley reiterated that the National Credit Corporation had not
functioned and asked Mr. Mills the cause. The latter explained that the
formation of the Corporation had served a useful purpose, but that he
did not know the amount of the loans.
Senator Watson interrupted to say that the Corporation had loaned
$15,000,000.
An agreement relative to the handling of checks on State funds in closed
National banks has been reached by State Treasurer William S. Johnson
and Comptroller of the Currency, J. W. Pole, Mr. Johnson has announced
In a letter to the West Virginia depository banks.
Mr. Johnson's letter to Comptroller Pole asking for an agreement appeared
in the issue of Dec. 5.
His letter follows in full text:
After considerable delay and a lot of hard work. I have finally secured
from the Comptroller of the Currency. Bon J. W. Pole, and from Mr.
M. G. Wallace, Counsel for the Federal Reserve Bank of Richmond, an
agreement regarding the handling of State checks drawn upon National
banks and received by them prior to their closing and for which remittances
were not made by them in time to clear through the Federal Reserve banks.
Return of Checks Sought.
I have been trying to secure an agreement with the receivers of closed
National banks to credit the State's account back with the amount of such
checks and to return them through the regular channels as dishonored and
unpaid. By this method I can when the checks are returned to you reimburse
you for same by giving you new checks drawn on solvent banks.
In a letter dated Dec. 10 from Mr. M. G. Wallace, Counsel for the
Federal Reserve Bank at Richmond, he says:
The West Virginia statute to which you allude appears to give to the
forwarding bank—that is to say, the bank which sent checks to the failed
bank for remittance—election to treat such checks as dishonored or to
prove a claim on behalf of the owner or owners. The statute would therefore
apparently authorize this bank, in the case of a failure, to immediately
make the election.
We of course could not accept instructions from any person except the
bank which had sent us the checks, because we would have no way of knowing Republicans Move Against Representative McFadden—
whether or not such person had a legitimate interest in the matter, as our
Senator Reed Asks Postmaster General to Bar
records do not show any description of the checks which we handle except
the name of the bank from which they were received and the name of the
Patronage Following Charge That President Hoover
bank to which they were sent.
Therefore, in all such cases you should advise the payee of the checks
Was "Tool" of International Bankers—Repreto have their banks instruct us to ask for the return of the checks, and in
giving these instructions the names of the drawers of the checks should
sentative Asks Federal Reserve Board Inquiry—
be given.
Declares German Assets Were Concealed.
Approved by Comptroller.
Hon. J. W. Pole, Comptroller of the Currency, in his letter under date
Supporters of President Hoover in Congress have set out
of Dec. 9 says: "We have very recently decided that although we can not to make Representative
McFadden, Republican of Pennrecognize statutes such as Section 13 of said Act of March 11 1931 (which
provide for preferred claims) as having application to closed National banks sylvania, former Chairman of the Banking and Currency
we can properly recognize statutes such as Section 11 of said Act as having Committee, pay dearly for his accusations that the President,
application, because they are not necessarily directed toward closed banks acting as
an "agent" of international financiers and the
but have equal application to going banks, and for this, and other reasons,
do not encroach upon the foregoing principles relating to preferred claims German Republic, had "sold out" the country in negotiating
against National banks. Consequently If the Federal Reserve banks or international debt moratorium. The foregoing, is
from a
other forwarding banks make election in accordance with the requirements
of said Section 11,this office is prepared to instruct the receivers to recognize Washington dispatch to the New York "Times" under date
such election and to return the items to the holders thereof so as to permit of Dec. 17, the account also stating:
the holders to proceed against the drawers of the checks, which in this case
Following closely on the demand of House Republican regulars that Mr.
would be, of course, the Treasurer of the State of West Virginia.
McFadden file his charges in the form of articles of impeachment, Senator
"Such election, if seasonably made, may prove to be a solution, as a Reed of Pennsylvania notified Postmaster General Brown to-day
that from
practical matter, of most if not all of the cases in which you are now con- now on lie and Senator Davis would handle postoffice patronage
in the
cerned, inasmuch as the account of the State Treasurer will be restored to Fifteenth Pennsylvania District, which Mr. McFadden
represents.
the balance existing prior to the drawing of such checks if and when the
Mr. Drown was told by Senator Reed that in the future, so far as Mr.
checks are received by the State Treasurer and are returned by him to McFadden's recommendations for Post Office appointments are
concerned
the receiver. Assuming in such cases that the accounts are properly and the Postmaster General could simply consider that the
recalcitrant Repreadequately secured, the balances then found to be due the State Treasurer sentative "had died."
can be paid in due course upon the filing of proofs of claims in the usual
Senator Reed disclosed his action at the White House immediately after
way, with the receiver.
a conference with President Hoover. He announced also that he would
"We would be entirely willing, if you care to submit to us a list of the do everything within his power in the next primary
election to defeat Mr.
banks in which the State Treasurer has deposits, to make a special investi- McFadden for renomination.
gation in each case to determine the status of the same and we will, of
Other Steps Contemplated.
course, co-operate with you in every way possible toward exPeditinga
Mr. McFadden's accusations against the President were made Tuesday
disposition of the various matters therein involved.”
[Dec. 151 in a 10.000-word speech In the House. They climaxed a series
Requests Banks to Act.
of charges made by the Representative over a period of several years
I want to suggest to each of the banks that have handled any checks against international bankers, who, he alleged, have been trying to involve
drawn on closed National banks for which it has not received remittance this country and its financial Institutions in the affairs of Europe.
Dm 26 1931.]
FINANCIAL CHRONICLE
4259
McFadden Charges Plot.
Failing repeatedly to get action on resolutions he has submitted relative
Representative McFadden charged a deep laid plot, inspired by certain
to investigations of the State and Treasury Department and the Federal
Reserve System as to their alleged international entanglements, Mr. international bankers, that included the election of President Hoover to
his present office— a tool of the bankers. He declared that the moraMcFadden turned his barrage on Mr. Hoover.
Administration followers in the House who have told Mr. McFadden torium announcement, while apparently unexpected, was "in the making"
traducer
of
the
a
"foul
branded
evidence
or
be
produce
for
a long period.
that he must either
"Behind the Hoover announcement there were many months of hurried
character of an honest man," indicated to-day that they have additional
steps in mind. They are waiting they said, for Mr. McFadden to answer and furtive preparation both in Germany and in the Wall Street offices
of Germany's bankers," said Mr. McFadden. "The groundwork had to be
their demand for positive evidence.
Outwardly unmoved by the storm raised by his remarks, Mr. McFadden prepared. The German budget had to be saturated with American money.
to-day continued his fight on the international bankers and the heads Mr. Hoover himself had to be elected, because this scheme began before
of the goernment finance. He presented a resolution calling for an in- he became President. If the German international bankers of Wall Street,
vestigation by the House Banking and Currency Committee into the ac- that is, Kuhn, Loeb & Co., J. & W. Seligman, Paul Warburg and their
tivities of the Federal Reserve Board and Federal Reserve Banks "with satellites had not had this job waiting to be done, Herbert Hoover would
never have been elected President of the United States. They helped to
respect to foreign banks and foreign central banks."
In a statement issued when he presented his resolution, Mr. McFadden elect him."
He added that the moratorium plan was brought to Washington in the
called attention to the report of the Young Committee at Basle that financial conditions in Germany had been found better than thought. The summer of 1930, nearly a year before the President's proposal, a fact, he
Committee's report was made in secret, Mr. McFadden said, but "it is said, that ought to convince Congress that it was not the result of any sudnow known that Germany has the capacity to pay under the terms of the den emergency in Germany or elsewhere. He charged that the President
was secretly offering to help Germany and the international bankers at a
Young Plan."
"This information is of the greatest importance," Mr. McFadden de- time when he was refusing substantial aid to American drouth sufferers.
"It will be interesting when this matter goes to trial before the Permanent
clared, "as supporting the charges I have made as regards the part the
German-American and their associated banks and bankers have taken Court of International Justice to find out whether Herbert Hoover was
acting as a legal agent of Germany or as the President of the United States
in bringing about the Hoover moratorium.
"It is now apparent because of this disclosure of Germany's capacity to when he made this proposal," declared Mr. McFadden, referring to a
pay that there was a deliberate attempt to conceal the correct amount possible session on scaling down othe war debts.
"If he was the agent of Germany, then Germany violated the solemn
of their reserve and short-time acceptance debts.
"I point to the fact that the first Wiggin report underestimates, almost covenant of the Young plan by procuring his assistance. If he acted on his
own initiative as the President of the United States, then I think he is
50%, the acceptance credits that Germany owed.
"This report of Germany's capacity to pay, which was just disclosed, is personally liable to the people of this country in a legal way and that
confirmation of the reason why Germany did not proceed under the Zoung those who acted with him are liable also. We cannot have an agent of
Plan and use this machinery which was created under the law to secure Germany acting as President of the United States."
her moratorium.
From Washington December 16 the advices to the "Journal
"Apparently they were afraid of the disclosure which has now been of Commerce" said in part:
made by this Committee operating under the Young Plan.
Secretary of State Stimson and Representatives Rankin and McFadden
were to-day's witnesses before the Ways and Means Committee. An effort
Presumes Bankers' Part.
had been made earlier in the day by Representative Treadway (Rep.,
"It is quite fair to presume that the New York international bankers, Mass), to have Mr. McFadden debarred from making an appearnce beheaded by Mr. Wiggin of the Chase National Bank and F. A. Goodhue cause of his attack on President Hoover yesterday, but failed because of
of the International Acceptance Bank, owned and controlled by Paul the fact that Mr. McFadden is a member of Congress. ...
M. Warburg, were instrumental not only in the negotiations with the
Committee Hears McFadden.
present German Government and the bankers and their committees relative to securing the priortiy for private debts over reparations but were Mr. McFadden appearing before the Ways and Means Committee this
also a factor in securing the assistance of the President in securing the afternoon, refrained from following up his attack of yesterday, but charged
moratorium.
that unnamed officials of the Government were two-faced in that they an"It is a well-known fact that the international bankers were very ac- nounced themselves as opposed to cancellation or scaling down the debts,
with
important government officials, particularly of- yet subsequent events indicated that there is such a movement as thia in
tive in conferring
ficials of the Federal Reserve Bank of New York, at or about the time of sight. President Hoover and members of the Cabinet and of Congress have
declared themselves opposed to tampering with the present debt settlements
the declaration of the moratorium.
"It ought to he clear to any one that the New York international bankers, beyond the scope of the proposed one-year moratorium.
fearing a loss of the private debts, were extremely anxious to secure priority
The Pennsylvanian assailed the general moratorium plan and urged the
and just as willing and insistent to see that reparation payments were Committee to study the memorandum filed with Secretary of State Stimson
recently by Ambassador Claudel of France, giving the position of his
reduced or canceled.
"The unfortunate situation arising from this strife and struggle to pro- country in the matter of debts and reparations. This, he said, reiterated
tect private debts, in lieu of government debts, is apparent in the res- the warning of France that any reduction in German reparation payments
ervations made by Great Britain, known as the Balfour reservations, would also mean a reduction in war debts due the United States from 'Prance.
and the stipulations the French made in the Young Plan, to the effect
that any reduction in reparation payments would automatically be do
for Broadening Redisducted from any amount which would have to be paid in reduction of war President Hoover's Proposal
debts."
count Provisions of Federal Reserve Act Viewed
Regarding the allegations by Representative McFadden
on December 15, we quote the following from the Washington dispatch on that date to the New York "Journal of
Commerce":
The war debt moratorium situation in Congress to-day assumed a very
serious aspect when Representative McFadden of Pennsylvania, former
Banking and Currency Committee Chairman, denominated President
Hoover the tool of the international bankers, and Under-Secretary of the
Treasury Mills appeared before the Way and Means Committee to tell
of the events that led to the proposal of the Chief Executive that there be
a one-year holiday in the payment of intergovernmental debts.
So serious and spectacular were the McFadden charges that Representative Chiperfield of Illinois was led to demand of the Pennsylvanian
prrof of his statements or their retraction. Chiperfield was Judge Advocate
General of the Third Army Corps, A. E. F., and was an officer in charge
of civil affairs in the occumpied area in Germany. In that position, he
told the House, he "had opportunity to see and observe the conditions
of those conquered people.
Launches Defense for Hoover.
"I hold no brief for Germany," he aid, "I have not abated the feeling
I had during the war. I hold no brief for the President of the United
States, but I want to defend the horrible charge that has been made in this
House this day." ...
Asked for Technical Data.
Secretary Mills was asked to supply a vast amount of techinical data,
including the extent of foreign public and private indebtedness to the
United States. It is considered that in his general testimony he set up at
least a partial defense to the charges framed by Representative McFadden.
McFadden spoke for an hour by courtesy of the Democrats. At the outset
they were highly enthusiastic over his attack upon President Hoover,
but toward the close this was supplanted by aloofness and finally not only
did Representative O'Connor (Dem., N. Y.) demand that some Republican
member answer McFadden but that if they did not he would be moved to
defend "your President and mine, who has been so attacked."
General permission was given to all speakers to "revise and extend
their remarks in the record," except as to McFadden, objection to such an
extension of privilege being entered by Representative O'Connor.
There are likely to be further repercussions in the House to-morrovr,
since it is quite probable that there will be a move to expunge the McFadden
remarks from the permanent record of Congress, according to friends of
the President.
"I stated what the consequences should be to the gentleman," Mr.
Chiperfield told the House. "If the gentlemen means what he says and if
the gentlemen is sincere, let him and his associates prepare articles of impeachment against the President of the United States, and let those articles
of impeachment be tried, and then the proof may be known, and let the
guilt and infamy and horror fall where it does. I merely say in conclusion
that the President of the United States would ask for such action, knowing
that the truth of a fair inquiry would fully vindicate him."
Unfavorably by Federal Reserve Banks—Replies
to Questionnaire Made Public by Banking Committee Headed by Senator Glass—Agree Requirements on Acceptability Suffice—Suggestion of
Curbing Member Bank Borrowings on 15-Day Note
Meets Opposition—Security Loans Defended.
With a few exceptions, the Federal Reserve banks are
not in favor of President Hoover's proposal for broadening
the provisions of the Federal Reserve Act relative to paper
eligible for discount. This fact, said the Washington correspondent of the New York "Journal of Commerce," was
revealed on Nov. 30 with the release by the Senate Banking
Probe Committee of an analysis of replies to its questionnaires designed to ascertain whether the provisions of the
Reserve Act, the rulings and regulations of the Federal Reserve Board, the acceptability standards of each Federal
Reserve bank, suffice at present to control credit expansion
in the speculative and the investment markets.
The account in the "Journal of Commerce" continued:
Executive Session Held.
The Committee met in executive session to-day to receive from its technical adviser, H. Parker Willis, New York economist, a report on the work
done during the summer vacation, which included a resume of answers of the
banks to 11 specific questions.
The outstanding features of the current document deal with the rediscount problem, the acceptance policy of the system and the open market
policy, the controversies between the board and the banks over the discount
rate policy, and there is a wealth of material giving the history of the
system in general during the past 10 years.
A great deal of opposition has been voiced in Congress against the Hoover
proposal, which was presented on the occasion of the October conferences of
Senate and House leaders at the White House, called to consider a program
to aid the banking industry during the stress period.
"I shall propose to the Congress that the eligibility provisions of the
Federal Reserve Act should be broadened in order to give greater liquidity
to the assets of the banks and thus a greater assurance to the bankers in
the granting of credits by enabling them to obtain legitimate accommodation
on sound security in times of stress," President Hoover explained at the
Oct. e meeting. "Such measures are already under consideration by the
Senate Committee on Currency and Banking."
To'day'. Meeting Preliminary.
The Banking Probe Committee has taken no action in the matter aeyet,
To-day's meeting was simply a preliminary one, adjournment being
taken
4260
FINANCIAL CHRONICLE
until Tuesday, when it is possible a program will be worked out. But it
will have before it the viewpoint of the Reserve banks whenever it undertakes to consider this particular phase of the banking situation.
It was suggested by the Chicago Federal Reserve Bank as temporary
measures to be used only at times of extreme emergencies, that the maturity
date on otherwise eligible paper be extended from 90 days to six months at
a higher rate for the longer, than for the shorter term paper, and allowed
only under conditions and circumstances to be established by the Reserve
Board; and that the banks be permitted to make 90-day loans to member
banks on notes secured by bonds which now are acceptable by the Treasury
Department as surety for war loan deposits, but only at penalty rates.
The Dallas Bank favors making landlords' obligations eligible for rediscount and that the maturity limit on advances to member banks secured by
motes, drafts, bills of exchange or bankers' acceptances eligible for discount
and purchases be increased from 15 to 90 days.
Urges Loan on Assets.
The Philadelphia Bank suggested that in some instances it might be
advisable to grant permission to advance funds to individual member banks
in distress against any of their assets, while the Richmond Bank felt that
such advances might be made if secured by high grade bonds in the absence
of other eligible paper. In neither case would these banks have such
paper serve as security for Federal Reserve notes.
There is apparently considerable variation in the degree to which credit
tests are applied to paper offered for rediscount, judging from the replies
received from Reserve banks. The financial and income statements of ths
maker, judged on the basis of the type of business in which he is engaged
and the quality of management of the indorsing member bank receive primary
emphasis.
The Federal Reserve banks, with the exception of Atlanta and Boston,
reported that acceptability requirements were not raised during restrictive
credit periods.
The consensus of opinion among the Federal Reserve banks appeared to be
that the present acceptability requirements set sufficiently high standards.
The thought was expressed that member banks are familiar with the eligibility and acceptability requirements and that to change these would introduce a needless uncertainty.
Excess Collateral Discussed.
All Federal Reserve banks have at one time or another required excess
collateral from member banks in a limited number of individual cases, it
was indicated. In recent years the San Francisco Federal Reserve Bank
apparently is the only one which does not require or accept excess collateral.
All Federal Reserve banks expressed themselves as opposed to repeal of
the provision in the Federal Reserve Act permitting member banks to borrow on their 15-day promissory notes secured by Government obligations
as a means of preventing the use of Federal Reserve credit for speculative
and investment purpeses. However, five indicated that it might tend toward
the reduction of the amount of Federal Reserve credit used for speculative
and investment purposes.
All of the Federal Reserve banks expressed themselves as opposed to a
suggestion that member banks be prohibited from increasing their own
security loans when borrowing from the Federal Reserve banks on the
basis of their 15-day promissory notes secured by Government obligations.
The reasons given were that the enactment of such a provision would
prevent member banks from engaging in normal and legitimate transactions
and from relieving an emergency situation exemplified by the stock market
crash of 1929, and would tend to drive banks from membership in the
Federal Reserve System. The thought was expressed that any abuses in the
use of the borrowing or rediscounting privilege could be handled administratively.
Investigate Use of Funds.
The Reserve Banks of Chicago, Cleveland and Minneapolis advised the
Committee that they habitually inquire into the use of the proceeds of
funds extended member banks.
Relative to relation of lending policy to the composition of the portfolio
of borrowing institutions, the Reserve Banks of Chicago and Cleveland
explained that their lending policies did vary with the composition of the
portfolio of the borrowing banks.
The other Reserve banks stated that variations in lending policy were
not the usual rule, though in speculative periods close consideration would
be given the portfolio of borrowing banks and always such considerations
would be given in event the banks were thought to be in a unsound
condition.
Practically all the Federal Reserve banks asserted that their examination
departments and the reports received from the National and State bank
examiners were of assistance in determining the value of a member bank's
Indorsement and the quality of paper offered for rediscount.
Kansas City Bank.
The Kansas City Reserve Bank does not examine National banks and
examined State banks only when special circumstances made it desirable.
The St. Louis Reserve Bank replied that the examination department had
been of assistance not as to policies but rather as to individual credits.
A general opinion was that rate control is effective in the financial centers, whereas "moral suasion" is required to control the loan policies of
banks outside metropolitan centers. The St. Louis Reserve Bank announced
that use of the discount rate is not practicable in that district, since legal
contract rates vary from 6 to 10%.
President Hoover's statement of Oct. 6, dealing with the
mobilization of the banking resources of the country (which
has resulted In the creation of the National Credit Corp.),
was referred to in our issue of Oct. 10, pages 2364-2366. In
this statement the President said:
I shall propose to Congress that the eligibility provisions of the Federal
Reserve Act should be broadened in order to give greater liquidity to
the assets of the banks, and thus a greater assurance to the bankers in the
granting of credits by enabling them to obtain legitimate accommodation
of sound security in times of stress. Such measures are already under
consideration by the Senate Committee of Banking and Currency.
From the New York "Times" Washington dispatch, Nov.
30, we take the following digest by the Senate Banking
Committee of the replies received from the Reserve banks:
Answers of Federal Reserve Banks.
Question No. 1.—Relative to changing the provisions of the Federal Reserve Act regarding the type of paper eligible for rediscount.
"With a few exceptions, the Federal Reserve banks did not favor changing
the provisions of the Federal Reserve Act relative to paper eligible for
[vol.. 133.
discount or the rulings or the regulations of the Federal Reserve Board
interpretative of these provisions.
"The Chicago Federal Reserve Bank offered two suggestions, to be employed temporarily and only at times temporarily and only: (a) that the
maturity date on otherwise eligible paper be extended from 90 days to six
months. Rediscounts of such paper should be allowed only under conditions
and circumstances to be established by the regulations of the Federal
Reserve Board; (b) that the Federal Reserve banks be permitted to make
loans to member banks not exceeding 90 days on notes secured by bonds
which are now acceptable by the Treasury Department as security for
war-loan deposits. Such advances would be granted at penalty rates and
would not serve as a basis for the issuance of Federal Reserve notes.
"The Dallas Federal Reserve Bank suggested: (a) That landlords'
obligations be made eligible for rediscount, and (b) that the statutory
maturity limit on advances to member banks secured by notes, drafts, bills
of exchange or bankers' acceptances eligible for discount and purchase be
Increased from 15 to 90 days.
"The Philadelphia Federal Reserve Bank suggested that in some instances
it might be advisable to grant permission to advance funds to individual
member banks in distress against any of their assets. The obligations
taken should not be used as security for Federal Reserve notes.
The Richmond Federal Reserve Bank suggested that in a national emergency, the existence of which should be determined by the Federal Reserve
Board, the Reserve banks might be permitted to make advances, secured by
high-grade bonds, to banks lacking eligible paper. The paper discounted
should not serve as security for Federal Reserve notes."
Question No. 2.—Relative to credit tests applied by the Federal Reserve
banks to paper offered for discount.
"Judging from the replies received from the Federal Reserve banks,
there is apparently considerable variation in the degree to which credit
tests are applied to paper offered for rediscount. The financial and
income statements of the maker, judged on the basis of the type of business
in which he is engaged, and the quality of management of the indorsing
member bank receive primary emphasis."
Question No. 3.—Relative to raising acceptability requirements during
periods of restrictive credit policies.
"The Federal Reserve banks, with the exception of Atlanta and Boston,
replied that acceptability requirements were not raised during such periods."
For Present Eligibility Rules.
Question No. 4.—Relative to the adequacy of eligible paper standards set
by the provisions of the Federal Reserve Act by the rulings and regulations
of the Federal Reserve Board, and by the acceptability requirements of the
Federal Reserve banks.
"The consensus opinion among the Federal Reserve banks is that the
present requirements set sufficiently high standards. The thought was
expressed that member banks are familiar with the eligibility and acceptability requirements, and that to change these would introduce a needless
uncertainty."
Question No. 5—Relative to the requiring of excess collateral.
"All Federal Reserve Banks have at one time or another required excess
collateral from member banks in a limited number of individual cases.
In recent years the San Francisco Federal Reserve Bank apparently is
the only one which does not require or accept excess collateral."
Excess Collateral Requirements.
Question No. 6—Relative to reasons for requiring excess collateral.
"The Federal Reserve Banks cited the following reasons for requiring
excess collateral:
"1, Non-liquid or weak condition of member-bank portfolio leading to
the impaired value of a member bank's endorsement.
"2. As a means of forcing the correction of an undesirable situation in
the affairs of a member bank. This might be resorted to particularly in
the case of too heavy or continuous borrowings on the part of the member
institution.
"3. A desire to save a distressed member bank when paper offered
does not measure up fully to standards of acceptability.
"4. The economic conditions in and the character of the business of a
particular community."
Borrowing Curb Opposed.
Question No. 7—Relative to the repeal of the provision in the Federal
Reserve Act permitting member banks to borrow on their fifteen-day
promissory notes secured by government obligations as a means of preventing the use of Federal Reserve credit for speculative and investment
purposes.
"All Federal Reserve Banks expressed themselves as opposed to the
repeal of this provision, though five indicated that it might tend toward
the reduction of the amount of Federal Reserve credit used for speculative and investment purposes.
"The reasons given in opposition to the repeal were:
"1. Member banks' borrowings arise from a loss in deposits or from an
increase in loans and are not related to specific transactions. They are
resorted to as a means of restoring or maintaining reserves which might
be depleted by reason of a variety of different transactions.
"2. The convenience on the part of the member banks in borrowing against
Government obligations.
"3. The assistance rendered in strengthening the market for Government
obligations.
"4. The fact that the repeal of this provision would not in the past have
affected the total volume of Federal Reserve credit, since in the aggregate
all banks possessed eligible paper considerably in excess of total borrowings.
"5. The fact that in certain communities there is a dearth of eligible
paper, so that banks there would find themselves discriminated against or
embarrassed."
As to Loans on Securities.
Question No. 8.—Relative to prohibiting member banks from increasing
their own security loans when borrowing from the Federal Reserve banks on
the basis of their 15-day promissory notes secured by Government obligations.
"All of the Federal Reserve banks expressed themselves as being opposed
to this suggestion. The reasons given were that the enactment of such a
provision would prevent member banks from engaging in normal and
legitimate transactions and from relieving an emergency situation exemplified by the stock market crash of 1929, and would tend to drive banks from
membership in the Federal Reserve System. The thought was expressed that
any abuses in the use of the borrowing or rediscounting privilege could
be handled administratively.
"The St. Louis Federal Reserve Bank replied that the examination department had been of assistance not as to policies but rather as to individual
credits."
DEC. 26 1931.]
FINANCIAL CHRONICLE
Question No. 9.—(a) Relative to the practice of inquiring habitually
Into the use of the proceeds of funds extended member banks.
"The Federal Reserve Banks of Chicago, Cleveland and Minneapolis
replied that they did habitually inquire into the use of the proceeds of
funds extended member banks."
Lending Policies and Portfolios.
(b) Relative to relation of lending policy to the composition of the
portfolio of borrowing institutions.
"The Federal Reserve Banks of Chicago and Cleveland replied that their
lending policies did vary with the composition of the portfolio of the
borrowing banks.
"The other Reserve banks replied that variations in lending policy were
not the usual rule, though in speculative periods close consideration would
be given the portfolio of borrowing banks, and always such consideration
would be given in event the banks were thought to be in an unsound
condition."
(c) Relative to the assistance rendered by the bank examination departments in the formulation of lending policies.
"Practically all the Federal Reserve banks replied that their examination
departments and the reports received from the National and State Bank
Examiners were of assistance in determining the value of member banks'
endorsement and the quality of paper offered for rediscount.
"The Kansas City Federal Reserve Bank replied that it did not examine
National banks and examined State banks only when special circumstances
made this desirable.
Experience hi "Moral Suasion."
Question 10.—Relative to the experience of the Reserve banks with the
use of "moral suasion."
"'Moral suasion' or direct action has been applied to a varying degree
by all Federal Reserve banks.
"The Federal Reserve Banks of Atlanta, Chicago, Cleveland, Dallas,
Kansas City and St. Louis replied that they had applied 'moral suasion' to
very good effect.
"In the opinion of the Federal Reserve Banks of Boston, New York and
Richmond, rate control is preferable to the use of 'moral suasion.' One
reason given was that it is impossible to obtain uniformity in results.
Some banks co-operate better than others. Business may be driven from
the more to the less co-operative institution.
"A general opinion was that rate control is effective in the financial
centers, whereas 'moral suasion' is required to control the loan policies of
banks outside the metropolitan centers.
"The St. Louis Federal Reserve Bank replied that use of the discount
rate is not practicable in that District, since legal contract rates vary
from 6 to 10%."
Dealing in Federal Funds.
Question 11.—Relative to dealing in Federal funds.
"The Federal Reserve Banks of Atlanta, Dallas, Minneapolis, Richmond
and St. Louis reported that dealings in Federal funds in those districts
were negligible. In the other Federal Reserve Districts transactions in
Federal funds have taken place to a greater or less extent in the larger
centers among banks of high credit standing. Interdistrict dealings in
Federal funds of considerable importance were reported.
"The Federal Reserve banks reported that Federal funds transactions are
resorted to not by reason of a deficiency in eligible paper or securities, but
by reason of differentials prevailing in the Federal funds rate as compared
with the rediscount rate.
"The Federal Reserve Bank of Chicago stated that such transactions have
been beneficial in decreasing the amount of Federal Reserve credit that
might otherwise go into the market.
"With the exception of San Francisco, the Federal Reserve banks reported
that transactions in Federal funds were of a temporary nature. The San
Francisco Reserve Bank stated that member banks there frequently transfer
the same amount of Federal funds back and forth between banks in
Eastern cities for a considerable period of time."
Question No. 12.—Data relative to rejection of eligible paper.
"Only five of the Federal Reserve banks were able to supply the information called for in the form requested."
"Paper on Failed Banks."
Question No. 13.—Relative to volume of paper on failed banks' accounts.
"Federal Reserve banks gave these statistics on the maximum and minimum
amount of paper held in failed banks' accounts in any one month during the
last four years:
Minimum.
Maximum.
83,405.505.04
$10,455,533.46
Atlanta
•
83,800.60
Boston
276,553.
2,900,125.84
Chicago
a
100,931.50
Cleveland
398,591.18
Dallas
64,746.76
612,010.62
Kansas City
432,178.44
1,$12,164.98
Minneapolis
4,826.58
New York
43.425.08
Philadelphia
925,807.93
236,788.57
Richmond
65,807.92
12.712,952.28
St. Louis
165,000.00
1,034,000.00
San Francisco
• None in 38 months. a None In 1927, 1929 and 1930. b None from June to
December 1929. e None in 1927, 1928 and 1929. d None in 44 months.
Question No. 14.—Relative to the volume of branch and unit bank
borrowings.
"In the Federal Reserve Districts of Dallas, Kansas City and St. Louis
branch banking is non-existent or relatively unimportant.
"Data in the form called for were not supplied by the Federal Reserve
Bank of Cleveland.
"The data reported by the other Federal Reserve banks reflected much
wider swings in the borrowings of branch member banks than in the case
of unit member banks, both in absolute amount and in per cent, of total
resources."
New York Bank's Position.
In the judgment of the New York Federal Reserve Bank, the provisions
of the Reserve Act and rulings and regulations of the Reserve Board relative
to the type of paper eligible for rediscount "are satisfactory as they now
stand, and we have no suggestions in regard to changes designed to control
credit expansions in the speculative and investment markets."
In other answers, the bank points out why the type of paper on which
member banks borrow does not affect and cannot be used "as a means of
controlling either the specific purposes for which bank credit is used" or
the total volume of bank credit.
"By the same reasoning," it added, "it is impossible to control credit
expansion in the speculative and investment markets by changes in the
rules affecting the eligibility of paper."
4261
Dealing with Question 7, the New York Bank said there were "two lines
of reasoning" which might be advanced in support of the proposed repeal
of the provision permitting member banks to borrow on 15-day notes.
"The first argument would relate to the specific use by banks of the
funds so obtained, and the second would relate to the effects on the total
volume of Federal Reserve credit in use.
"The first question is whether Federal Reserve funds which are obtained
by banks by the presentation of their collateral notes secured by governments are used in any different way from the Federal Reserve funds obtained
from other channels.
"The second question is whether the form of privilege which banks have
of borrowing on their 15-day notes secured by governments tends to encourage
an excessive expansion of credits; that is, whether the availability of this
method results in a larger use of Federal Reserve funds than would occur
if this facility were withdrawn."
Stand on Security Loan Plan.
Question 8, relating to increases in security loans, was answered by the
New York Bank with the comment that:
"We do not believe a distinction may properly be drawn between the
different forms of borrowing from the Reserve banks. The form of borrowing from the Reserve banks does not affect the nature of the use of the
proceeds of the loan made by the member bank to its customer, and there
is, therefore, nothing to be gained by placing an additional penalty upon
any one form of borrowing.
"The question then becomes whether all member-banks borrowing should
be subject to the restriction that borrowing banks may not increase their
own collateral-security loans. This restriction has presumably been suggested as a means of controlling the growth of speculative loans. The
following considerations may be suggested:
71. Not all collateral loans are speculative in character or to be discouraged. A considerable amount of collateral borrowing is for business
purposes and for legitimate and necessary financing. Much of the credit
required for the development of the country's industry has for years been
financed upon the basis of stocks and bonds.
"2. The question arises whether banks have, in fact, abused the borrowing privilege by excessive advances of collateral loans which necessitated
their use of Federal Reserve credit. Broadly speaking, the records indicate
that the banks in this District have not increased their collateral loans
unnecessarily at times when they were indebted at the Reserve banks.
There have, of course, been some exceptions to this rule, but hardly eufficient to affect the general credit situation. During the speculative
enthusiasm of 1928 and 1929, with call rates at attractive levels, the New
York City banks made a very slight increase in their loans to brokers.
Says a Hardship Is Likely.
"3. There are many occasions when the proposed restriction would work
not only a hardship, but might bring about serious consequences.
"(a) The events of the stock market crash of October and November
1929 are illustrative. To prevent a money panic, the New York City banks
were required, in a period of two weeks, to take over temporarily a considerable part of the $2,000,000,000 of brokers' loans withdrawn by other
lenders. To do this they found it necessary to borrow the necessary reserve
at the Federal Reserve Bank. This action prevented a serious panic."
The New York Bank said it seemed to it undesirable that the proposed
restriction should be placed upon member-bank borrowings.
"It appears impracticable," the bank observed, "for a Reserve bank to
attempt to differentiate between the different kinds of collateral loans in
a member bank's portfolio. So often the character of the loan ia merely a
question of motive of the original borrower, which is it impossible for the
Reserve bank to determine."
Regarding Question 9, the New York Bank said that although it does not
habitually inquire into the use of the proceeds of each loan to member
banks, it does follow closely the borrowing record of member bank'.
"In cases where the amount or duration of a bank's borrowing gets
out of line with that of other banks in the same community, or suggests
anything unusual, we study their operations, and in frequent cases confer
with the officers, and in some instances require from them either daily or
weekly reports showing changes in loans and other assets and in dep its," .1
the reply said.
lter Lippmann Defends Paul M. Warburg Again
Attack by Representative McFadden.
The following by Walter Lippmann, is from the New York
"Herald Tribune" of December 17:
With such an attack as that delivered by Congressman McFadden of
Pennsylvania, the President has no need to concern himself. Mr.McFadden
has long since earned the contempt of honest men, and his speech on Tuesday, charging Mr. Hoover with having plotted with Germany's bankers
to betray the country,is such obvious indecency that it requires no answer.
All that needs to be done with the speech is to expunge it from the Record
which it would otherwise defile. It is not possible, I believe, under the
Constitution to expunge Mr. McFadden. . . .
There was, however, a passage in the speech which does call for brief
comment,for it is an attack on a private individual who,unlike the President.
cannot count upon the instant revulsion of the country against Mr. McFadden's libels. I refer to Mr. Paul M. Warburg, who is described in the
speech as "the man who engineered the great depression, the man who is
the chief beneficiary of the losses sustained by the farmers and the wageearners of this country."
This is a demonstrable falsehood. Far from being the man who "engineered" the great depression. Mr. Warburg has the conspicuous distinction of having warned the country publicly, specifically and accurately
about the impending disaster. He did so on March 7 1929. seven months
before the panic, at the time when the Federal Reserve Bank of New York
was vainly endeavoring to persuade Washington to let it put the brakes
upon the speculative mania. There is no space here to quote the whole of
Mr. Warburg's remarks, but in justice to a man who was a true, a timelyi
and courageous prophet, these few sentences are worth remembering:
If a Stock Exchange debauch is quickly arrested by prompt and del
termined action, it is not too much to hope that a shrinkage of inflated
stock prices may be brought about without seriously affecting the wider
circle of general business. If orgies of unrestrained speculation are permitted to spread too far, however, the ultimate collapse is certain not only
to affect the speculators themselves, but also to bring about a general
depression involving the entire country . . . hesitation in taking effectual
means to reassert the Federal Reserve System's leadership, place a graVe
responsibility on those in charge of its administration,
Mr. Warburg can stand on his record.
It does him honor.
4262
FINANCIAL CHRONICLE
Senate Approves Measure Making Dec. 26 and Jan. 2
Legal Holidays in Capital.
Dec. 26 1931 and Jan. 2 1932, would be declared legal holidays in the District of Columbia under the provisions of a
bill (S. 655) passed by the Senate Dec. 18. In indicating
this the "United States Daily" of Dec. 19 continued:
The days affected by the measure are Saturdays and Government employees are accorded a half holiday on Saturdays under previouslegislation.
The purpose of the present bill would be to allow the closing of all Governmeat departments and banks on the other half of the holiday already fixed
by law for Saturdays, thus making a continuous holday over Christmas
Day to Monday.
Provisons of the bill were not extended to Federal employees outside of the
District of Columbia, because of constitutional questions. Senator Ashburst (Dem.), of Arizona, said thought had been given to it but that the
constitutional questions were so involved "that the holidays will have
come and gone before the constitutional lawyers of the Senate could decide
What to do."
Offering of $100,000,000 or Thereabouts of 91-Day
Treasury Bills.
Announcement of a new issue of 91-day Treasury bills, to
the amount of $100,000,000, or thereabouts, was made on
Dec. 22 by Secretary of the Treasury Mellon. Tenders for
the bills will be received at the Federal Reserve banks and
their branches up to 2 p. m. Eastern standard time on Monday next, Dec. 28. The bills will be dated Dec. 30 1931 and
will mature on March 30 1932. They will be issued in
bearer form only, and in denominations of $1,000, $10,000,
$100,000, $500,000 and $1,000,000 (maturity value). On the
maturity date the face amount will be payable without
interest. The bills are sold on a discount basis to the
highest bidders. According to the New York "Times," during January $102,979,000 in bills will mature. The volume
now outstanding is $575,816,000. Secretary Mellon's announcement of Dec. 22 follows:
The Secretary of the Treasury gives notice that tenders are invited for
Treasury bills to the amount of $100,000,000, or thereabouts. They will
be 91-day bills, and will be sold on a discount basis to the highest bidders.
Tenders will be received at the Federal Reserve Banks, or the branches
thereof, up to 2 o'clock p. us. Eastern standard time, on Monday, Dec. 28
1931. Tenders will not be received at the Treasury Department, Washington.
The Treasury bills will be dated Dec. SO 1931 and will mature on
March 30 1932, and on the maturity date the face amount will be payable
without interest. They will be 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).
It is urged that tenders be made on the printed forms and forwarded in
the special envelopes which will be supplied by the Federal Reserve banks
or branches upon application therefor.
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 receipts of tenders on Dec. 28 1931,
all tenders received at the Federal Reserve banks or branches thereof up to
the closing hour will be opened and pane 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 action in any such respect shall be final.
rejection
Those submitting tenders will be advised of the acceptance or
thereof. Payment at the price offered for Treasury bills allotted must be
available
made at the Federal Reserve banks in cash or other immediately
funds on Dec. 30 1931.
and any
The Treasury bills will be exempt, as to principal and interest,
exempt, from
gain from the sale or other disposition thereof will also be
sale or
the
from
loss
No
all taxation, except estate and inheritance taxes.
deduction, or
other disposition of the Treasury bills shall be allowed as a
imposed
otherwise recognized, for the purposes of any tax now or hereafter
by the United States or any of its possessions.
notice
Treasury Department Circular No. 418, as amended, and this
conditions of
prescribe the terms of the Treasury bills and govern the
Federal
any
their issue. Copies of the circular may be obtained from
Reserve bank or branch thereof.
(Var. 132.
worth are believed to have been destroyed in the Chicago fire of Ott. 1871.
When the Government suspended specie payment about Jan. 1 1862,
people immediately hoarded all monetary currency. In order that trade
might be carried on, the report relates, persons devised exchange mediums
of their own, including postage stamps pasted on strips of paper. This
invention suggested to Congress the minting of the small fractional currency which was not displaced until the Treasury again began making
minor coins.
The section of the report dealing with the fractional currency follows in
full text:
When specie payments were suspended about Jan. 1 1862. all of the
gold, silver, and minor coins in circulation disappeared as if by magic.
due largely to the hoarding of the coins which, it was thought, would be
at a premium in the near future.
A relief from this condition was needed promptly and the first came
rom individual enterprise. Merchants issued promissory notes on small
sizes of paper in amounts varying from 1 cent up and redeemable in goods
at their places of business. Also, street-car tickets, milk tickets, metal
tokens, and anything having an apparent value were pressed into service
for making change. Postage stamps, very naturally, quickly claimed
recognition as a circulating medium, but the adhesive back was a serious
impediment. This trouble was soon overcome, however, by pasting
definite amounts on small slips of paper which the Post Office Department
readily agreed to redeem, when worn or mutilated, with new stamps.
The convenience and definite value of the pasted stamps were so readily
apparent that the matter was at once taken up by Congress; the regular
issue of postage currency was authorized and the issuing of tokens, memorandums, and other obligations by individuals for a less sum that $1 intended to circulate as money was prohibited. The postage currency was,
less than a year later, succeeded by the fractional currency which remained
in use until the issue of small coins again became a possibility. Fractional
currency is not a legal tender. It was, however, receivable for postage
and revenue stamps, and also in payment of any duties to the United States
less than $5 except duties on imports.
There were five issues of fractional currency aggregating $368,724,079.45,
including reissues, in denominations of 3 cents. 5 cents, 10 cents, 15 coats.
25 cents, and 50 cents. It is estimated that $32,000 in unknown denominations were destroyed in the Chicago fire in October 1871. Also, the
public-debt statement for June 1880 shows a reduction of $8,375,934 in
such currency estimated by a committee appointed by the Secretary of
the Treasury as lost or destroyed. Again in December 1920 the amount
outstanding was reduced by $4,842,066.45, the amount estimated by the
Government actuary as irrevocably lost or destroyed. These amounts,
together with the redemptions to date of $383,484,796.99, leave $1,989.282.01 outstanding, as shown by the public-debt statement for June
30 1931.
Country at Crisis in Taxation, Says Senator Metcalf
—"Dangerous Point" Reached Alsoin—Concentration of Power in Federal Government, He
Declares.
"This Nation has reached a critical and dangerous point
in the matter of taxation and cencentration of power,"
Senator Metcalf (Rep.) of Rhode Island, asserted Dec. 20
in a radio address from Washington under the auspices of
the Sentinels of the Republic. The following account of
what he had to say is from the "United States Daily" of
Dec. 21:
He emphasized the "unquestioned" need for decentralization of power
and a new acknowledgment of the rights of States. Total expenditures
of all governmental agencies in the United States from 1913 to 1930 grew
442%, or increased twice as fast as the combined earnings and income of
the American people, he declared.
Criticizes Federal Aid Trend.
The trend toward Federal taxation In place of local taxation was said
by him to be rapidly whittling away the right of local self-government.
"The belief has spread through many States that the Federal Government
should extend its Federal aid system to new and unheard of limits," he continued. "If this belief should be put into practice we would bankrupt the
Government and force the people of this country into a condition offinancial
desperation. There have been bills introduced in Congress proposing that
the Federal Government should finance a system of rural education. Such
suggestions are not only contrary to the principles of this Government,
but would make this a country of tax-ridden people who can never successfully bear the tremendous burden which would be placed upon them.
"In the budget just proposed to Congress approximately $275,000.000
will be doled out to the States in the form of Federal aid. Much of this
money is paid to the States in proportion to population or area without
any consideration at all of the amount of taxes paid by them," Senator
Metcalf declared.
Urges Abolition of Roads Aid.
"The Federal highway appropriations should be abolished, or materially
reduced, and the money used for relieving some of the burden of taxes which
are paid by the people. The United States Bureau of Public Roads spends
more than 82,500,000 every year, of Federal funds, for salaries alone.
"There is grave doubt as to the,wisdom of the appropriations for vocational
education, agricultural extension and Federal highway construction. These
activities cost the Federal Government $140,000,000 annually," Mr.
Metcalf added.
"As a result of the enormous increase in public employees and pensioners,
all branches of government in this country are supporting either wholly or
in part more than 10,000,000 people. Think of it! One-seventh of the
adult population of the country supported wholly or partially by taxation.
And the number is increasing daily.
"While we preach economy," Senator Metcalf concluded, "we might
well practice it by a curtailment of the Federal aid system and the removal
of many of the bureaus and commissions which are eating up the resources
of the people and endangering the very framework of our Government."
Civil War Currency Outstanding Placed at Nearly
Two Millions.
More than $1,989,000 of the old National currency issued
by the Treasury Department during the Civil War when
specie payments were suspended and persons were using
postage stamps for currency are still outstanding, according to the annual report of the Treasurer of the United Text of Bill Creating Reconstruction Finance Corp.—
States recently made public by the Treasury Department.
Capital of Half Billion to Be Subscribed by United
We quote further as follows from the "United States Daily"
States Treasury—Authority to Issue Debentures.
of Dec. 21:
According to reports during the past week action is
Issues of the 60-year-old currency, which was issued in 3, 5, 10, 15. 25
and 50-cent denominations, aggregated $368,724,079.45, the report says, expected in the House early in January on the bill providing
and only $353.484.796.99 worth has ever been redeemed. The rest.
creation of the Reconstruction Finance Corp., the
according to the report. has been irretrievably lost or destroyed; 132,000 for the
DEC. 26 1931.]
FINANCIAL CHRONICLE
introduction of which in Congress was noted in our issue of
Dec. 12, page 3910. The creation of the corporation,
similar in nature to the War Finance Corp., was recommended in President Hoover's annual message. The Senate
bill was introduced by Senator Walcott (Republican) of
Connecticut, a member of the Senate Banking and Currency
Committee, while the House bill was sponsored by Representative Strong (Republican) of Kansas.In giving the
text of the Senate bill the "United States Daily" of Dec. 10
said:
A capital subscription of 8500,000,000 would be made by the United
States Government under the proposal, and the corporation would be
authorized to issue its debentures to a maximum amount of $1,500,000.000.
The Senate bill (S. 1) follows in full text:
A bill to provide emergency financing facilities for banks and other
financial institutions, and other purposes.
Be it enacted by the Senate and House of Representatives of the United States
of America in Congress assembled, That there be, and is hereby, created a
body corporate with the name "Reconstruction Finance Corporation"
(herein called the Corporation). This Act may be cited as the "Reconstruction Finance Corporation Act."
Sec. 2. The Corporation shall have capital stock of $500,000,000, all
subscribed by the United States of America, payment for which shall be
subject to call in whole or in part by the board of directors of the Corporation, with the approval of the Secretary of the Treasury, at such time or
times as may be deemed advisable.
There is hereby authorized to be appropriated, out of any money in the
Treasury not otherwise appropriated, the sum of 8500,000,000 for the
purpose of making payments upon such subscription when and as called.
Receipts for payments by the United States of America for or on account
of such stock shall be issued by the Corporation to the Secretary of the
Treasury and shall be evidence of the stock ownership of the United States
of America.
Sec. 3. The management of the Corporation shall be vested in a board
of directors consisting of the Secretary of the Treasury, the Governor of
the Federal Reserve Board, and the Farm Loan Commissioner, who shall
be members ex officio, and two other persons appointed by the President
of the United States, by and with the advice and consent of the Senate.
Each director shall devote his time not otherwise required by the business
of the United States principally to the business of the Corporation. Before
entering upon his duties each of the two directors so appointed and each
officer of the Corporation shall take an oath faithfully to discharge the
duties of his office.
Nothing contained in this or in any other act shall be construed to prevent
the appointment and compensation as a director, officer, or employee of the
corporation of any officer or employee of the United States in any board,
commission, independent establishment, or executive department thereof.
The terms of the two directors so appointed by the President of the
United States shall be five years from the date of the enactment hereof,
and thereafter the term of each director so appointed shall be five years
from the date of the expiration of the term for which his predecessor was
appointed.
Whenever a vacancy shall occur among the directors so appointed the
Person appointed to fill such vacancy shall hold office for the unexpired
portion of the term of the director whose place he is selected to fill. The
two directors of the Corporation appointed as hereinbefore provided shall
receive salaries at the rate of $12,000 per annum each:
Provided, That any director receiving from the United States any salary
or compensation for other services shall not receive as salary from the
corporation any amount, which, together with any salary or compensation
received from the United States, would make the total amount paid to
him by the United States and by the Corporation exceed 812,000 Per
annum.
Sec. 4. The Corporation shall have succession for a period of 10 years
from the date of the enactment hereof, unless it is sooner dissolved by an
Act of Congress. It shall have power to adopt, alter, and use a corporate
seal; to make contracts, to purchase or lease and hold or dispose of such
real estate as may be necessary or convenient for the transaction of its business; to sue and besued,to complain and to defend,in any court of competent
Jurisdiction, State or Federal; to select, employ, and fix the compensation of
such officers, employees, attorneys and agents as shall be necessary for the
transaction of the business of the Corporation, without regard to the provisions of other laws applicable to the employment and compensation of
officers or employees of the United States; to define their authority and
duties, require bonds of them and fix the penalties thereof, and to dismiss
at pleasure such officers, employees, attorneys and agents; and to prescribe,
amend and repeal, by its board of directors, by-laws, rules, and regulations
governing the manner in which its general business may be conducted and
the powers granted to it by law may be exercised and enjoyed,including the
selection of its chairman and vice-chairman, together with provision for
such committees and the functions thereof as the board of directors may
deem necessary for facilitating its business under this Act.
The board of directors of the Corporation shall determine and prescribe
the manner in which its obligations shall be incurred and its expenses
allowed and paid. The Corporation shall be entitled to the free use of the
United States mails in the same manner as the executive departments of
the Government.
The Corporation, with the consent of any board, commission, independent establishment, or executive department of the Government, including
any field service thereof, may avail itself of the use of information, services,
facilities, officers and employees thereof in carrying out the provisions of
this Act.
The Corporation shall have such incidental powers as its board of directors shall deem necessary or expedient in carrying out the provisicns of
this Act.
Sec. 5. The Corporation is authorized and empowered to make loans,
upon such terms and conditions not inconsistent with this Act, as it may
determine, to any bank, banker, savings bank, trust company, clearing
house or other association of banking institutions, building and loan association, insurance company or other financial institution in the United
States (herein referred to as financial institutions).
All such loans shall be fully and adequately secured in such manner as
the Corporation shall require. The Corporation, under such conditions
as it shall prescribe, may.take over or provide for the administration and
liquidation of any collateral accepted by it as security for such loans.
Such loans may be made directly upon promissory notes of such financial
Institutions, or by way of discount or rediscount of obligations tendered
by them for the purpose, or otherwise, in such form and in such amount
and at such Interest or discount rates as the Corporation may approve.
4263
Each such loan may be made for a period not exceeding three years, and
the Corporation may from time to time extend the time of payment of
any such loan, through renewal, substitution of new obligations, or otherwise, but the time for such payment shall not be extended beyond five
years from the date upon which such loan was made originally.
The Corporation may make loans under this section at any time prior to
the expiration of one year from the date of the enactment hereof; and the
President may from time to time postpone such date of expiration for such
additional period or periods as he may deem necessary, not to exceed two
years from the date of the enactment hereof.
Within the foregoing limitations of this section, the Corporation may also
make loans to or aid in the temporary financing of steam railroads engaged
in inter-State commerce, when in the opinion of the board of directors of
the Corporation such railroads are unable to obtain funds upon reasonable
terms through banking channels or from the general public and the Corporation will be adequately secured.
Sec. 6. Section 5202 of the Revised Statutes of the United States, as
amended (U.S. C., Title 12, Ch. A,Sec. 82) is hereby amended by striking
out the words "War Finance Corporation Act" and inserting in lieu thereof
the words "Reconstruction Finance Corporation Act."
Sec. 7. All moneys ofthe Corporation not otherwise employed may be deposited with the Treasurer of the United States subject to check by authority
of the Corporation or in any Federal Reserve bank, or may, by authorization of the board of directors of the Corporation, be used in the purchase
or redemption of any notes, debentures, bonds, or other obligations issued
by the Corporation. The Federal Reserve banks are authorized and
directed to act as depositaries, custodians and (or) fiscal agents for the
Reconstruction Finance Corporation in the general performance of its
powers conferred by this Act.
Sec. 8. In order to enable the Corporation to carry out the provisions
of this Act, the Treasury Department, the Comptroller of the Currency,
the Federal Reserve Board, the Federal Reserve banks and the InterState Commerce Commission are hereby authorized, under such conditions
as they may prescribe, to make available to the Corporation in confidence
such reports, records or other information as they may have available
relating to the condition of financial institutions and (or) railroads with
respect to which the Corporation has had or contemplates having transactions under this Act, or relating to individuals, associations, partnerships or corporations whose obligations are offered to or held by the Corporation as security for loans to financial institutions or railroads under
this Act, and to make through their examiners or other employees for the
confidential use of the Corporation examinations of such financial institutions or railroads.
Every applicant for a loan under this Act shall, as a condition precedent
thereto, consent to such examinations as the Corporation may require for
the purposes of this Act and (or) that reports of examinations by constituted authorities may be furnished by such authorities to the Corporation
upon request therefor.
Sec. 9. The Corporation is authorized and empowered, with the approval of the Secretary of the Treasury, to issue, and to have outstanding
at any one time in an amount aggregating not more than three times its
subscribed capital, its notes, debentures, bonds, or other such obligations;
such obligations to mature not more than five years from their respective
dates of issue, to be redeemable at the option of the Corporation before
maturity in such manner as may be stipulated in such obligations, and to
bear such rate or rates of interest as may be determined by the Corporation:
Provided, That the Corporation, with the approval of the Secretary of
the Treasury, may sell on a discount basis short-term obligations payable
at maturity without interest.
The notes, debentures, bonds, and ether obligations of the Corporation
may be secured by assets of the Corporation in such manner as shall be
prescribed by its board of directors. Such obligations may be issued in
payment of any loan authorized by this Act or may be offered for sale at
such price or prices as the Corporation may determine with the approval
of the Secretary of the Treasury.
In the event that the Corporation shall be unable to pay upon demand,
when due, the principal of or interest on notes, debentures, bonds, or other
such obligations issued by it, the Secretary of the Treasury shall pay the
amount thereof, which is hereby authorized to be appropriated, out of
any moneys in the Treasury not otherwise appropriated,and thereupon to the
extent of the amounts so paid the Secretary of the Treasury shall succeed
to all the rights of the holders of such notes, debentures, bonds, or other
obligations.
The Federal Reserve Banks shall have the same powers (1) to discount
notes, drafts, and bills of exchange secured by obligations issued by the
Corporation under this Act, (2) to make advances to member banks on
their notes secured by such obligations,(3) to use all paper so acquired, and
(4) to purchase and sell such obligations, as they have with respect to
bonds and (or) notes of the United States:
Provided, That the rate at which any such discount or advance shall be
made by any Federal Reserve bank shall be 1% per annum above its
discount rate on 90-day commercial paper then in effect.
See. 10. Any and all notes, debentures, bonds, or other such obligations
Issued by the Corporation shall be exempt both as to principal and interest
from all taxation now or hereafter imposed by the United States, by any
Territory, dependency, or possession thereof, or by any State, county,
municipality, or local taring authority.
The Corporation,including its franchise, its capital, reserves and surplus,
and its income shall be exempt from all taxation now or hereafter imposed
by the United States, by any Territory, dependency, or possession thereof,
or by any State, county, municipality, or local taxing authority; except
that any real property of the Corporation shall be subject to State, county,
municipal, or local taxation to the same extent according to its value as
other real property is taxed.
Sec. 11. In order that the Corporation may be supplied with such forms
of notes, debentures, bonds, or other such obligations as it may need for
Issuance under this Act the Secretary of the Treasury is authorized to
prepare such forms as shall be suitable and approved by the Corporation,
to be held in the Treasury subject to delivery, upon order ofthe Corporation.
The engraved plates, dies, bed pieces, &c., executed in connection therewith shall remain in the custody of the Secretary of the Treasury. The
Corporation shall reimburse the Secretary of the Treasury for any expenses
incurred in the preparation, custody and delivery of such notes, debentures,
bonds, or other obligations.
Sec. 12. When designated for that purpose by the Secretary of the
Treasury, the Corporation shall be a depositary of public money, except
receipts from customs, under such regulations as may be prescribed by
said Secretary; and it may also be employed as a financial agent of the
Government; and it shall perform all such reasonable duties, as depositary
of public money and financial agent of the Government, as may
be required of it.
Notes, debentures, bonds, or other such obligations Of the
Corporation
shall be lawful investments, and may be accepted as security, for all
fiduciary, trust and public funds the investment or deposit of which
shall be
4264
FINANCIAL CHRONICLE
under the authority or control of the United States or any officer or officers
thereof.
See. 13. Upon the expiration of the period of one year within which the
Corporation may make loans, or of any extension thereof by the President
under the authority of this Act, the board of directors of the Corporation
shall, except as otherwise herein specifically authorized, proceed to liquidate
Its assets and wind up its affairs.
It may with the approval of the Secretary of the Treasury deposit with
the Treasurer of the United States as a special fund any money belonging
to the Corporation or from time to time received by it in the course of
liquidation or otherwise, for the payment of principal and interest of
its outstanding obligations or for the purpose of redemption of such obligations in accordance with the terms thereof, which fund may be drawn
upon or paid out for no other purpose.
The Corporation may also at any time pay to the Treasurer of the
United States as miscellaneous receipts any money belonging to the Corporation or from time to time received by it in the course of liquidation or
otherwise in excess of reasonable amounts reserved to meet its requirements
during liquidation.
Upon such deposit being made such amount of the capital stock of the
Corporation as may be specified by the Corporation with the approval of
the Secretary of the Treasury but not exceeding in par value the amount
so paid in shall be canceled and retired.
Any balance remaining after the liquidation of all the Corporation's
assets and provision being made for payment of all legal obligations of any
kind and character shall be paid to the Treasurer of the United States as
miscellaneous receipts. Thereupon the Corporation shall be dissolved and
the residue if any of its capital stock shall be canceled and retired.
Sec. 14. If at the expiration of the 10 years for which the Corporation
has succession hereunder its board of directors shall not have completed
the liquidation of its assets and the winding up of its affairs, the duty of
completing such liquidation and winding up of its affairs shall be transferred
to the Secretary of the Treasury, who for such purpose shall succeed to
all the powers and duties of the board of directors of the Corporation
under this act.
In such event he may assign to any officer or officers of the United States
in the Treasury Department the exercise and performance, under his general
supervision and direction, of any such powers and duties; and nothing herein
shall be construed to affect any right or privilege accrued; any penalty or
liability incurred, any criminal or civil proceeding commenced, or any
authority conferred hereunder, except as herein provided in connection
with the liquidation of the remaining assets and the winding up of the
affairs of the Corporation, until the Secretary of the Treasury shall find that
such liquidation will no longer be advantageous to the United States and
that all of its legal obligations have been provided for, whereupon he shall
retire any capital stock then outstanding, pay into the Treasury as miscellaneous receipts the unused balance of the moneys belonging to the Corporation, and make the final report of the Corporation to the Congress.
Thereupon the Corporation shall be deemed to be dissolved.
Sec. 15. The Corporation shall annually make a report of its operations
to the Congress as soon as practicable after the first day of January in each
year.
Sec. 16. (a) Whoever makes any statement knowing it to be false, or
whoever wilfully overvalues any security, for the purpose of obtaining
for himself or for any applicant any loan, or extension thereof by renewal,
deferment of action, or otherwise, or the acceptance, release, or substitution of security therefor, or for the purpose of influencing in any way
the action of the Corporation, under this act, shall be punished by a fine
of not more than $5,000 or by imprisonment for not more than two years,
or both.
(b) Whoever (1) falsely makes, forges, or counterfeits any note, debenture, bond, or other obligation, or coupon, in imitation of or purporting
to be a note, debenture, bond, or other obligation, or coupon, issued by
the Corporation, or (2) passes, utters or publishes, or attempts to pass,
utter or publish, any false, forged, or counterfeited note, debenture, bond,
or other obligation, or coupon, purporting to have been issued by the
Corporation, knowing the same to be false, forged or counterfeited, or (3)
falsely alters any note, debenture, bond, or other obligation, or coupon,
Issued or purporting to have been issued by the Corporation, or (4) passes,
utters or publishes, or attempts to pass, utter or publish, as true any falsely
altered or spurious note, debenture, bond, or other obligation, or coupon,
Issued or purporting to have been issued by the Corporation, knowing
the same to be falsely altered or spurious, shall be punished by a fine of
not more than $10.000 or by imprisonment for not more than five years,
or both.
(e) Whoever, being connected in any capacity with the corporation, (1)
embezzles, abstracts, purloins, or wilfully misapplies any moneys, funds,
securities, or other things of value, whether belonging to it or pledged or
otherwise entrusted to it, or (2) with intent to defraud the Corporation or
any other body politic or corporate, or any individual, or to deceive any
officer, auditor or examiner of the Corporation, makes any false entry
In any book, report or statement of or to the Corporation, or, without
being duly authorized, draws any order or issues, puts forth or assigns any
note, debenture, bond, or other obligation, or draft, bill of exchange,
mortgage, judgment or decree thereof, shall be punished by a fine of not
more than $10,000 or by imprisonment for not more than five years, or
both.
(d) No individual, association, partnership or corporation shall use the
words "Reconstruction Finance Corporation," or a combination of these
three words, as the name or a part thereof under which he or it shall do
business. Every individual, partnership, association or corporation violating this prohibition shall be guilty of a misdemdanor and shall be punished
by a fine of not exceeding $1,000, or imprisonment not exceeding one year,
or both.
(e) The provisions of sections 112, 113, 114, 115, 116 and 117 of the
Criminal Code of the United States (U. S. C., Title 18, ch. 5, secs. 202
to 207, inclusive) in so far as applicable, are extended to apply to contracts
or agreements with the Corporation under this Act, which for the purposes
hereof shall be held to Include loans, advances, discounts and rediscounts;
extensions and renewals thereof; and acceptances, releases and substitutions
of security therefor.
The Secret Service Division of the Treasury Department Is authorized
to detect, arrest and deliver into the custody of the United States Marshal
having Jurisdiction any person committing any of the offenses punishable
under this section.
Sec. 17. The right to alter, amend or repeal the; Act Is hereby expressly
reserved. If any clause, sentence, paragraph, or part of this Act shal' for
any reason be adjudged by any court of competent jurisdiction to be invalid,
such judgment shall not affect, impair, or invalidate the remainder of this
Act, but shall be confined in its operation to the clause, sentence, paragraph,
ar part thereof directly involved in the controversy in which such judgment
shall have been rendered.
[VoL. 133.
Governor Meyer, of Federal Reserve Board, Says Establishment of Reconstruction Finance Corporation
Is One Thing Which Can Do Most to Reassure the
Public—Higher Price Levels Viewed As Possible—
Tells of Reserve System's Position at Senate Investigation—War Finance Corporation's Loans.
Establishment of the Reconstruction Finance Corporation,
proposed by President Hoover in his message to the Congress, was urged at a hearing before the Banking and Currency Committee of the House and a subcommittee of the
Senate Banking and Currency Committee, Dec. 18 by
Eugene Meyer, Governor of the Federal Reserve Board, as
the one thing which will, in his opinion, do more than any
other to reassure the people who are dominated by fear at
the present time. "The very knowledge of its existence,"
Mr. Meyer told the Committee,"would do more to reassure
people in fear than any other one thing." The foregoing is
from the "United States Daily" of Dec. 19, from which we
also quote as follows:
Governor Meyer told the House Committee that he prefers not to make
predictions as to the result of the creation of the Corporation, because of
the many factors Influential in shaping economic events, but stated that
he was "hopeful" that a higher price level for commodities and securities
might result from its activities. "It would contribute strongly in that
direction," he stated in reply to a question by Representative Goldsborough
(Dem.), of Denton, Md,
Real Estate Situation.
He referred to the fact that there was a rise In the price level during the
period of activity of the War Finance Corp., after which the proposed
Corporation is modeled.
The most important unfavorable economic factor at the present time, in
Mr. Meyer's opinion, Is the real estate situation, with the condition of the
railroads also of prime importance. Building and loan associations, he
said, are suffering from depression and demoralization of values, which
have been carried in many cases to an extreme.
Foreign conditions are also a factor in the situation he stated, entirely
apart from the matters of investments, loans reparations, and other intergovernmental relationships, in that reduced buying power abroad, intensified by disturbed exchanges, interrupts normal foreign trade activities.
Availability of Funds.
The main value of the Reconstruction Finance Corp. according to Governor Meyer, will lie in the availability of funds, if needed. While loans
will be made, and perhaps in some volume, the corporation will be of fundamental importance in removing the fear that grows out of uncertainty
as to whether funds can be obtained or not.
Mr. Meyer referred to his recommendation of ten years ago that the
War Finance Corp. be formed. "I said then and feel now that it is a sound
principle of government in exceptional circumstances involving the national
interest to depart from the ordinary governmental activities and ordinary
governmental participation in the financial operations of the country and
to provide temporary and exceptional institutions and measures to deal
with them."
He reviewed briefly the history of the War Finance Corp., particularly
Its operations under the non-war or reconstruction powers. Not much
money was loaned under the war powers, he told the Committee, but the
support to financial institutions was of great importance. "It was a confidence-inspiring institution," he said, "and figures do not show its full
value effectively. On occasions there were industries which needed financing, and when the support of the War Finance Corp. enabled the bankers to
finance the requirements of the concerns in question through the regular
investment market. Such transactions were of better effect than the actual
lending of money by the corporation."
Fear Is Dominant.
"We have a situation now where fear is dominant,just as it was in 1921,"
he continued. The fear, now as then, is not fear of the borrower of good
character, and standing, or of his securities, but fear of the general situation.
In many cases it is the fear of the weak in the minds of the strong, not the
weak fearing the strong."
Referring to a report of the War Finance Corp., Mr. Meyer said that
the peak of loans by that Institution to some 4.300 country banks was $134.000,000 reached in May, 1922. A year later the total outstanding was
$60,000,000, in spite of new loans made in the meantime, and in another
year the total outstanding had declined to $37,000,000. Loans on livestock reached a peak of$60,000,000 in 1922. had been reduced to $40,000,000
in 1923 and to $26.000,000 In 1924, he said.
With the strength and resources of this proposed national corporation,
there is a possibility of improvement through remedial work, which will be
of the greatest benefit to agriculture and industry, in Mr. Meyer's opinion.
Some of the so-called frozen assets, he declared, are the best assets in this
country, based on the most fundamental industries. "They thaw out
with surprising speed," he added, when properly handled.
There is one fundamental difference between the present situation and
that existing in 1921, he said. The year 1921 followed a period of eight
years ofsubnormal construction in the United States. The real estate boom
of recent years had its origin in the stimulation of building and of speculating in and financing of real estate which accompanied the attempt to catch
up on construction. Some unsound tendencies developed, he stated.
both in the way of overbuilding and in unsound financing. The situation
has been characterized, however, more by weakness in financing than in
over-expansion of space, he added, although in some areas there has been
overbuilding. "The prompt liquidation of unsound finance in the real
estate field," he said, "is of highest importance because as long as mortgages
are being foreclosed on property unsoundly financed, and as long as bankruptcies continue, competition will be furnished demoralizing to properties
which are in sound condition."
The Corporation would be given broad powers and large resources to
enable it to attack the problem. Mr. Meyer stated. Competent administration of course is necessary, he added, to assure success both from the
point of view of assisting the people of the country and in saving the Government from loss.
Since the obligations of the Corporation will be ultimately obligations of
the Government. be saw no objection to making notes and drafts secured
by them eligible for rediscount by reserve banks, but agreed that there would
be some opposition to that feature. He called attention to the higher
rate that would be applied to rediscounts of that character, and declared
DEC. 26 1931.]
FINANCIAL CHRONICLE
that the rate would strongly tend to prevent them being offered to the reserve banks.
"While we should carefully examine the mistakes of banking and industry
in the last five years, and possibly mistakes in making some of our
foreign investments," he said, "the essential thing to do in connection
with this measure is to confront conditions and do whatever is for the best
Interest of the people as a whole."
In referring to the rise in price levels following 1921, Mr. Meyer said
that in 1921 the Bureau of Labor Statistics showed a price level of 83 as
compared with 100 for 1926 and that in January, 1924, it was 112.
The substitution of the Under-Secretary of the Treasury for the Secretary
as a member of the board of directors was suggested by Governor Meyer,
because the Secretary serves in many ex-officio capacities, while the UnderSecretary holds few such positions, and would perhaps have more time to
devote to Corporation affairs.
The Committee will resume hearings on the bill next week, when Governor
Meyer will appear for questioning, Representative Steagall (Dem.), of
Ozark, Ma., Chairman, announced.
Release of Resources Seen,
Mr. Meyer told the Senate subcommittee in his opinion the proposed
Corporation would release resources held largely through fear. In many
localities, he said, loans by the Corporation would help not only the institutions to which they were made, but others which had held up their
own resources as a protection for their weaker neighbors. He cited what
the War Finance Corp. had done to save banks and loan agencies throughout the country. Mr. Meyer asserted that he believed some of the conditions
at present were attributable to the plight of the bankers. Here, as well
as abroad, he said, conditions have tended to force the burden back on the
producers; hence the price decline.
The bill itself was described by Mr. Meyer as "apparently sound."
Provisions for financing the Corporation have the effect of creating a security for sale by it "almost on a par with Government bonds." He thought
they ought to be attractive to investors.
Mr. Meyer said that "wise administration" was a requisite to success.
He said that he had no doubt that there would be "sympathetic" treatment
of applications as far as was consonant with the law and sound banking.
As the bill stands, there is no limit of the amount which National banks
may borrow. Asked by Senator Watson (Rep.), of Indiana, whether that
was "wise," Mr. Meyer said he thought the Corporation directors would set
a limit in accordance with the necessities of each case.
A great many problems exist now that did not exist earlier, he said by
way of explaining why the powers proposed for the Reconstruction Corporation were broader than those given the War Finance Corp. The War
Finance Corp. dealt chiefly with agricultural loans and banks in farm
areas. The problem now, Mr. Meyer said, is national in character.
Asked by Senator Brookhart (Rep.), of Iowa, why the Federal Reserve
System had not taken cars'.of the situation, Mr. Myer explained it was
incapable of reaching the difficulties under its statutory powers. The
Reserve system was not set up for the purposes designed to be met by the
Walcott bill, Mr. Meyer said.
The Committee adjourned to Saturday without having heard Ogden L.
Mills, Under-Secretary of the Treasury. With several other witnesses
he will be called to testify Dec. 19.
Melvin A. Traylor of First National Bank of Chicago
Before Senate Committee Urges Immediate Formation of Reconstruction Finance Corporation to
Replace National Credit Corporation—New Corporation Approved by F. H. Ecker of Metropolitan
Life Insurance Co., Particularly in Behalf of Railroads—Proposal That Government Guarantee
$2,000,000,000 Bond Issue.
Before the subcommittee of the Senate Committee on
Banking and Currency, in Washington on Dec. 22, Melvin
A. Traylor, President of the First National Bank of Chicago,
expressed the view (according to the New York "Times")
that the proposed Reconstruction Finance Corporation should
be formed "at the earliest possible moment" to replace the
National Credit Corporation, a volunteer organization with
assets of $500,000,000. In the Washington account to the
New York "Herald-Tribune" Dec. 22 it was stated:
Traylor Urges Loans to Closed Banks.
Mr. Traylor recommended what were termed two vital amendments
to the present plan for setting up the Corporation. His first proposed
amendment startled the Committee. It was that the Corporation make
loans to banks which have been closed, a point on which he argued apparently to the point of convincing Committee members.
His second proposed amendment was that the Corporation be financed
through a Government loan, instead of by proposed debentures guaranteed
by the Treasury, as the Government's responsibility for repayment of the
debentures actually would be the same and Government bonds or Treasury
certificates could be floated at a lower rate of interest than the debentures.
Mr. Traylor's testimony, dealing solely with banks, was approved in
later testimony by Wilson W.Mills, Chairman of the Board of the People's
Wayne County Bank of Detroit, with the exception that Mr. Mills favored
the issuance of debentures on the ground that the public "may get fed up
on too many straight government loans."
Insurance Heads Urge Rail Aid.
Immediate action in aid of railroads was urged upon the Senators not
only by Ezra Brainerd Jr., Chairman of the Inter-State Commerce Commission, but by the presidents of two leading ilfe insurance companies,
which are heavy investors in railroad bonds.
Mr. Brainerd testified that railroads will need between $85,000.000 and
$156,000,000 above cash in hand and contemplated receipts to meet obligations maturing before May 1 1932.
Frederick H. Ecker, President of the Metropolitan Life Insurance Co.,
testified that life insurance companies need no assistance from the proposed Reconstruction Corporation, but that 16% of his company's investments are in railroad bonds, compared with 38% in 1906.
Morgan B. Brained, President of the Aetna Life Insurance Co., testified to the same opinion as Mr. Ecker, regarding the railroads' condition,
and gave his company's holdings of railroad bonds as $80,000,000.
Mr. Ecker, backed by Morgan B. Brainrd, testified that he had faith
in the railroads' working out of their difficulties, but said that the immediate emergency '"more serious than in 1920, as far as railroad credit is
concerned, because the railroads now have bank loans of $70,000,000."
He added that in 1932 there will fall due payment on some $243,000,000
In bonds which, under present conditions, could not be refinanced.
Following to-day's hearing the subcommittee met informally and agreed
that every effort should be made to have the bill perfected during the
recess in order that it may be reported to the Senate in January. Certain
proposed changes in the bill were discussed tentatively by the subcommittee
and M. Parker Willis, expert for the Committee, was requested to draft
the language of certain perfecting changes for consideration by members
of the subcommittee.
Senator Peter Norbeck of South Dakota, Chairman of the whole committee, said no decision has yet been reached by the subcommittee regarding modifications.
Traylor Tells Corporation's Purpose.
Mr. Traylor's testimony regarding the need for replacement of the National Credit Corporation, of which he is Committee Chairman in his own
Federal Reserve District, came after testimony at the morning session
and consideration of the problem during the luncheon recess, which Senator
Walcott, Chairman of the full committee, said impelled him to return to
give this testimony.
"The National Credit Corporation," said Mr. Traylor, "was formed
voluntarily by the banks of the country to meet an emergency that they
felt clearly existed at the time. That emergency arose because of the
believed inability for solvent banks to borrow against their collateral.
"As a matter of fact banks had two avenues open, either their Federal
Reserve membership or their correspondent relations, but there was a
general public feeling that a number of banks had assets that were good.
but too slow to meet requirements.
"This Corporation, was formed therefore, for the purpose of making
loans against slow assets.
An impressive succession of American bankers today urged Congress
to have the government take over completely the task of liquidating frozen
assets through President Hoover's proposed $2,000,000,000 Reconstruction
Finance Corporation and permit the privately financed National Credit
Corporation to dissolve immediately.
The bankers were unanimously of the opinion that the Reconstruction
Finance Corporation would prove a tremendous stimulus to business and
renewed public confidence, but they were equally united in declaring that
the Government should guarantee the full $2,000,000,000 bond issue to
make the experiment fully effective.
The bill now under consideration calls for a Federal appropriation of
only $500,000,000 but authorizes the Corporation to issue debentures for
three times that amount, giving the organization an initial capital of
$2,000,000,000. With one exception, the bankers insisted that it was
vital to have the bill give the debentures the guaranteed support of the
United States Treasury.
Frederick H. Ecker, President of the Metropolitan Life
Insurance Co., also appeared before the subcommittee on
Dec. 22, and in advocating the creation of the Reconstruction Finance Corporation did so in behalf of the railroads,
bonds of which to the amount of 16% of its investments
are held by the Metropolitan. As to the hearing on Dec.
22, and the views presented on that day, we quote as follows
from the Washington dispatch to the New York "Times":
Mr. Traylor gave as his opinion testimony that the taking over by
banks which are in the most liquid condition of slow-moving assets from
less-fortunate banks meant only a transfer of undesirable loans from bank
to bank and eventually would mean that banks would find themselves
with $500,000,000 invested in such paper.
This relief work, Mr. Traylor held, is the function of an organization
outside of the banks themselves, under present conditions, and he pronounced the proposed Reconstruction Corporation the proper agency.
4265
Holds $500,000,000 Would lie Tied Up.
"What it meant was that the pooled assets of the banks would be loaned
to borrowing banks against assets that were slow. The result is that to
the extent that this pool loans against frozen assets they are taking into
their own portfolios assets that, at the moment they come in, are subject
to criticism as slow. To pursue this policy to the end would mean tying
be
up $500,000,000 in slow assets. Therefore, I believe this bill should
enacted at the earliest possible moment to relieve the banks from further
tying up their assets."
reason
The resumption of public confidence in banks would be sufficient
Traylor
for the adoption of the bill embracing the new organization, Mr.
institutions
said, asserting that "If the confidence in our central banking
fails, then everything else fails." He emphasized that banks generally
vital
are in good condition but that "lack of public confidence" is the
weakness in to-day's banking system.
Would Bring Hoarded Money Out.
banks
Mr. Traylor testified that money might well be loaned to closed
on their good but slow securities, thereby releasing an estimated $1.750.which
000,000 tied up in those institutions and re-creating confidence
would bring out into circulation another $750,000,000 which he estimated
banks.
people were hoarding because of their lack of confidence in
"With the making available of that money and the restoring of confito
dence it is altogether possible," he testified, "to add 31,000,000,000
the circulation in a very short time and more soon after."
corporation
Mr. Traylor also asked that the directors of the proposed
receive wide discretion, saying that he hesitated "to talk before the newspapers, but the National Credit Corporation had found it advisable to
loan money on perfectly sound assets but of a type which would not get
by this corporation," with the restrictions written in the bill.
Reverting to the closed banks, Mr. Traylor maintained that most of
them had been run on sound lines, citing that these generally have paid
to depositors between 50 and 75%.
"To say that banks are responsible alone," Mr. Traylor said suddenly,
"in the face of the collapse of values is to say that you gentlemen in Congress are responsible for a deficit of a billion dollars."
"Well, if the bankers' judgment was so good," Senator Glass challenged
him, "how do you account for their acceptance of $8,000,000,000 or
$9,000,000.000 of practically worthless foreign securities?"
"Very few are in the banks," responded Mr. Traylor.
"Then they were unleaded on a credulous public." said Senator Glass,
"and sound banks had no business endorsing that gambling folly."
"Senator," answered Mr. Traylor, "investors have lost two dollars In
real estate and railroad loans for every dollar they have lost in foreign
loans. It is all a part of the collapse of everything we thought was good."
Mr. Traylor added that the beginning of the depression was in 1914
when "we, the world, inflated ourselves to an extent of about $200.000.000,000, much of which will never be repaid."
4266
FINANCIAL CHRONICLE
Loans Preserve Insurance Policies.
When Mr. Ecker testified regarding life insurance companies, he said
that no large company yet had been unable to meet its obligations, but
that evidence of heavy strain on the public to preserve life insurance was
seen in the fact that 32% of all investments by his company in 1931 have
been in the form of loans on policies. Nevertheless, he said that 1931 had
been a record policy-selling year for his company.
Metropolitan company investments described by Mr. Eckel' included
the railroad bonds previously mentioned. and 28.4% of the company's
assets in city mortgages, 10.2% in farm mortgages. 10.2% in public utilities,
15.9% in policy loans, 8% in foreign and domestic bonds and 2.8% in
real estate.
In discussing the railroad situation, he emphasized that railroads are
an essential part of the scheme of public service and must be preserved,
adding:
"I think the maturities facing the railroads in the next few months
cannot be taken care of even if the depression does not continue. It would
require six months for them to get the benefit of an upward turn. I think
that in the first three months of 1932 they will not do as well as in the first
three months of 1931. I cannot think the change will come soon enough
to enable the railroads to meet obligations or to sell secondary securities
to enable them to take care of these bonds."
Urges Liberalizing Bill.
Mr. Ecker recommended that the Inter-State Commerce Commission
be asked to approve any loans to the railroads from the proposed corporation and asked that the provisions of the enabling bill be liberalized, particularly as regards security requirements.
When Senator Brookhart of Iowa asked Mr. Ecker the present rate
Of interest charged railroads for loans, the witness replied:
"At the present moment railroads cannot borrow at any rate."
Mr. Ecker injected a heated passage into his otherwise cool analysis of
conditions when Senator Brookhart asked:
"Business is pretty well destroyed, isn't it?"
"No, sir:" exclaimed Mr. Eckel', turning on his interrogator. "Business is going on. We are pretty near what we will have to consider normal
for some time. There is no sense in delaying business projects and hoarding
money and letting fear hold up everything we normally would do. During
the best times we had 1,500,000 men employed. Ordinarily about 48,000,000 workers were employed. Now there are between 40,000,000 and
41,000,000 employed. The shrinkage is regrettable, but we are going on."
[VOL. 183.
York the banks have loaned about 50% on deposits in the Bank of United
States. I am afraid that if you start loaning money to closed banks you
will exhaust a large part of this corporation's resources."
Asks Electric Rail Inclusion.
C. B. Cass, counsel for the American Electric Railway System, protested to the Committee that electric railways, including those with property valued at almost $1,000,000,000 which are engaged in inter-State
commerce, would obtain no relief whatever under the proposed measure
as it now stands for it specifies "steam railways." Mr. Cass' contention
will be considered by the Committee.
The measure was endorsed by Hilton W. Harrison, President of the
Security Owners Association of New York. Another witness was George
St. Jean, President of the Federal International Corp.. a research organization, who asked for inclusion in the measure of means for relieving the
foreign credit situation through the provision of one or two-year export
credits, instead of the customary 90-day acceptances, which, be said, are
not applicable to present export conditions.
Railroad Freight Rate Rise Jan. 4 Is Granted;$100,000,000 Added—Inter-State Commerce Commission
Waives 30-Day Notice Rule to Put in Effect Substitute Schedule It Suggested—Other Relief Is
Ordered—Long, Short Hauls Provisions Are Broadcast—Time Limit Set at March 31 1933.
Railroads of the country received permission on Dec. 24
from the Inter-State Commerce Commission to put into
effect the freight rate increases which were suggested in its
recent decision on the carriers' proposal to increase all rates
by 15%. The Commission expects the increases to net
$100,000,000 to $125,000,000 annually. The New York
"Times"in its issue of Dec. 25 refers to the matter as follows:
The authorization came in the form of approval of applications filed by
the various roads to make the new rates effective in less than the statutory
period of notice, 30 days,
The Commission, in agreeing, waived certain tariff rules to enable the
authorized increases to be published in master tariffs and supplements,
Opposes Inter-State Commerce Commission Passing on Loans.
Morgan B. Brainard testified only briefly, saying Mr. Ecker had covered with the increases becoming effective in less than five days after publimany of his own conclusions, but he emphasized the conclusion that "this cation.
Every effort had been made to make the new schedules applicable by
fund would be as practical a step to reassure business as anything I could
Jan. 1, but rate experts to-day expressed the opinion that they cannot be
think of."
He also testified that its most valuable feature would be the aid granted placed in effect before Jan. 4.
A group of railroad agents, headed by W. S."Curlett, called at the Comto railroads, but disagreed with Mr. Ecker on the principle of having the
mission's offices with a sample of the master tariffs, covering the rates
Inter-State Commerce Commission pass on loans on the ground that this
to
be raised, and conferred with some of the Commissioners during most
would "encumber operation of the plan."
"At the moment I see no need of life insurance companies borrowing of the day.
To avoid complications, the Commission revoked all outstanding ununder that provision in the bill," Mr. Brainard testified, "although a
situation might arise, due to a demand for policy loans, where it might expired orders conflicting with its authorization of the new rates.
The
Commission also granted relief from the long-and-short hauls probe very helpful. The greatest help I can see is that it will do much to
vision of the Inter-State Commerce Act, as far as they would apply to
dispel the fog of doubt and fear that is enveloping the people.
Chairman Brainerd of Inter-State Commerce Commission Cites Rail Obligations. establishment of the increased charges.
Under these provisions the carriers are prohibited from collecting a rate
Chairman Brainerd of the Inter-State Commerce Commission, asked
for a long haul which would exceed the aggregate of rates to intermediate
to supply definite figures to the Committee when he appeared at yesterday's hearings, did not give figures comparable with those cited by Mr. points. They also prohibit the collection of rates for a short haul which
would exceed that for a long or through haul.
Ecker, but concerned himself with the first quarter of 1932.
After citing obligations against railroads on Oct. 31 totaling $224,145,827,
Time Limit Is March 311933.
Mr. Brainerd testified to-day that in the first quarter of 1932 railroads
The Commission ordered that the new rates shall not remain in effect
would have to pay $2,677,550 on bonds, $35,984,395 on loans and bills beyond March 311933.
payable and $35,560,820 on equipment trust obligations. He said this
All but one of the Class I railroads eligible to participate in the plan for
information was not available from the files of the Commission, but was the marshalling and distribution of the fund that will result from the
compiled by the Bureau of Railway Economics.
Increases, have given notice of their willingness to do so.
"For Class I operating railways (excluding lessor companies)" Chairman
Twenty Class I roads are ineligible to share in the railroad credit corBrainerd reported, "the total amount of bond maturities for the year poration; no roads may participate which derive less than 50% of their
1932, including the amount for the first quarter, is $70,299,827. The revenues from freight traffic, nor may those in receivership or which have
total of equipment trust obligations for 1932, including the amount given obligations in default. Also inelikible are those which would be unable
for the first quarter, is $110,782,506."
to meet their fixed obligations even with the aid of a loan from the corChairman Brainerd also testified that gross operating revenues of rail- poration.
from
$6.189,917,189
in
1928
to
an
roads had dropped
estimated $4,225,Thus 134 of the 155 Class I roads will participate in the marshalling
000,000, and net operating income, after deduction of taxes but before and distributing plan; with one refusing such participation and 20 infixed charges, had shrunk in the same periods from $1,194,487,806 to eligible.
The Commission has expressed the opinion that the sum expected to
$535,800,000.
Estimates Requirements to May 1.
result from the rate increases will suffice to prevent further defaults on
fixed
charges.
Following the presentation of his prepared figures, Chairman Brainerd
Although a number of roads are not eligible to participate in the plan
made his $85,000,000 to $156,000,000 estimate of the railroad's requirements up to May 1 1932. thus marking the end of a six-months' period for rail credit rehabilitation, they will be allowed, nevertheless, to benefit
from application of the new rates.
to which the Commission has been giving special study.
He said that, roughly, these estimates had been arrived at through
the weighing of many factors and final allowance of $79,000,000 for shortterm loan requirements, $62,000,000 for equipment trust instalments Rail Wage Move—Many Roads Serve Notice of Wage
and $14,000,000 for bond maturities, which it would be desirable to pay
Cuts—Labor to Fix Date of Conference with Rail
by May 1 1932. These figures totaled $150,000,000, which was quite
Owners in Chicago.
near the maximum figure originally given by the Chairman.
Alfred P. Thom, counsel for the Association of Railway Executives, in
In accordance with the decision of the presidents of the
brief testimony told the Committee that even if railroads immediately
received authorization for increases of freight rates on commodities and Nation's railroads in New York Dec. 18 appointing a comthese rates, which are considered virtually approved by the Commission, mittee empowered to "negotiate to a conclusion" with the
were effective by Jan. 1, "the railroads could not get the benefit until Railway Labor Executive's Association on wages and emlate in March."
Mr. Thom said that the railroads would not object to having the Inter- ployment,railroads all over the country, with few exceptions
State Commerce Commission pass on loans by the proposed corporation, began Dec. 22, notifying their employees of their intention
a proceeding which Chairman Brainerd had testified could, in an emer- to change existing contracts so as to bring
about a 15% wage
gency, be done within "less than a week."
J. C. Traphagen's Views.
J. C. Traphagen, of New York, who appeared as a representative of
the Bank of New York & Trust Co., said he "heartily approved" of the
bill, particularly as the New York banks, "out of respect for their obligations to correspondents, some times remain too liquid."
"I think it is a good thing for the public to know these things are being
done," he added. "However, the financing of the corporation should
not be mixed up with Government finances, for the issuance of Treasury
bonds instead of debentures might have a detrimental effect on Government credit."
Mr. Traphagen opposed loans to closed banks, as advocated by Mr.
Traylor, saying:
"I think that might be a mistake and it probably would not be necessary. If the banks get back on a normal basis they will loan the money
to closed banks, which would be supplied by this corporation. In New
reduction. Under the provisions of the Railway Labor Act
posting of notices calls for conferences on the subject within
30 days.
Among the few exceptions are the Bangor & Aroostook,
the Delaware & Hudson, and the Western Maryland, which
have not authorized the special committee of railroad
presidents to act for them in the conference now being
arranged with union leaders. Independent negotiations
are being conducted by the Delaware & Hudson, which
normally is not a participant in group action on labor matters.
On Dec. 23, it was announced, that chiefs of the 21 railroad labor organizations will meet at Cleveland, Dec. 29, to
FINANCIAL CHRONICLE
DEC. 26 1931.]
fix the date and to formulate their policy for the wage
negotiation conference to be held with railroad executives
In Chicago.
The Railroads' Committee.
The joint committee named by the railroad presidents
to represent the several regions is as follows:
Western Region.—L. A. Downs of the Illinois Central, James Gorman
of the Chicago, Rock Island & Pacific, L. W. Baldwin of the Missouri
Pacific.
Southern Region.—C. A. Wickersham of the Atlanta, Birmingham &
West Point RR. (an affiliate of the Atlantic Coast Line), H. D. Pollard
of the Central Georgia, A. C. Needles of the Norfolk & Western.
Eastern Region.—Daniel Willard of the Baltimore & Ohio, J. J. PelleY
of the New York, New Haven & Hartford and Charles E. Denney of the
Erie.
The action of the presidents is a re-appointment of the
committee that conferred in New York a month ago with
the Railway Labor Executives' Association. The committee previously had been empowered only to discuss
questions of policy. Mr. Willard is again its Chairman.
Discussing the serving of notices under the Railway Labor
Act, a member of the committee of nine said:
The only purpose In the service of this notice Is to comply with the provisions of the Railway Labor Act. It is an action which the managements
must take to guard against the possibility that the coming negotiations
with labor might fall through, but of this I have no expectation. All the
managements believe that an amicable adjustment will be made. No
steps toward a reduction under the law will be made pending the outcome
of the conference with labor.
kg The fact that the managements have given their committee full power
tot_act on wages and employment and that this committee was appointed
by unanimous vote shows that the managements expect this body to be
successful in its undertakings.
Railways Approve Loan Pool Plan—Practically Unanimous Assent Given, According to Announcement.
Practically unanimous assent to the loan plan of the
Associatiion of Railway Executives which contemplates the
making of loans to financially weak carriers by a railroadcontrolled organization called "The Railroad Credit Corporation," from funds derived from freight rate advances
permitted by the Inter-State Commerce Commission, has
been received by the Association, according to a statement
of the Association transmitted to the Commission Dec. 22.
The statement follows:
4267
Favors Provisions of 1920 Law.
Couzens' plan is to re-enact provisions of the 1920 railway act setting
up a revolving fund of $300,000,000 for loans certified by the Inter-State
Commerce Commission, at an interest rate of 6%.
"By such an arrangement," be said, "we should assure that applications
for advances would be passed upon by a competent body. There is nothing
in this bill to provide for such supervision, nor is a rate of interest fixed.
"I am going to get the railway sections out of the Reconstruction Corp.
bill in Committee if I can, and if not I will take other means.
()ouzel's' statement was the sensation of to-day's hearings on the Walcott
bill, particularly since he is a member of neither the subcommittee considering it nor the Banking and Currency Committee. His action also is
diametrically opposed to the wishes of President Hoover, who is most
anxious for the passage of the Reconstruction Corp. measure in the shortest possible time, and with the railroad provisions intact.
Hoover Assured of Prompt Action,
Only a few hours before Couzens made his announcement Senate leaders
calling at the White House had assured the President prompt action would
be secured on the ambitious Reconstruction Corp. plan. It was their hope,
they said, to have the measure before the Senate soon after the reconvening
in January.
The results of this interview were reported on the Senate floor by Republican leader Watson, who was accompanied to the Executive Mansion
by the Chairmen and ranking members of the Finance and Banking and
Currency Committees, Republican and Democrat.
Willard had previously told the Committee that American railways have
more than $1,000,000,000 bond obligations maturing in the next three years.
If loans are not made available from the projected Reconstruction Corp.,
to be capitalized at $500,000,000 and authorized to issue debentures to a
total of $1,500,000,000, it was represented, the lines might be forced to go
into the market to borrow enormous sums for refunding operations at
"distress" rates of interest.
"If we felt we could secure loans from the Government at reasonable
rates next summer it would certainly be a matter of great satisfaction to
us," said Willard, speaking for the B. & 0. "I believe It would be a good
investment for the Government, too."
The hazard as to repayment, he continued, would be a negligible one
for the Treasury.
Improvements Periled.
"Some of the roads, unless able to get large sums at rather reasonable
rates, will have to stop necessary work now under way," Willard declared.
"This year, 82 roads will fail to earn their fixed interest charges by
$120,000,000."
The B. & 0., said Willard, is in need of $48,000,000 in 1932 to meet
maturing obligations, and it was his belief the line could save from 1 to 2%
by borrowing from the Reconstruction Finance Corp. if established.
Other witnesses heard by the Committee to-day were Harry E. Ward,
President Irving Trust Co.; Henry Bruere, vice-President Bowery Savings
Bank; Ezra Brainerd, Jr., Chairman of the Inter-State Commerce Commission, and Philip A. Benson, Treasurer Dime Savings Bank, Brooklyn.
New Working Agreement Offered to Engineers by
Delaware & Hudson RR. Rejected by Brotherhood—Wage Rule Reported Involved.
Associated Press advices from Wilkes-Barre, Pa., Dec.
Railroads Authorized to Increase Freight Rates—To 17, stated:
A new working agreement offered locomotive engineers by the DelaGo Into Effect Jan. 4.
ware & Hudson RR. has been rejected by Division 263, Brotherhood of
The Inter-State Commerce Commission Dec. 24, accord- Locomotive Engineers, Marvin W. McCarthy, Assistant Secretary of the
ing to an Associated Press dispatch from Washington, odge, said to-day. said, offered every engineer 240 hours' work each
The proposal, he
authorized the railroads of the country to increase freight month
and pay ranging from $250 to $300 monthly. McCarty said the
rates on five days' notice to the general public. Immediately local group, as brotherhood members, could not accept the offer because
lodge. The latter, he said, would not sanction
after the Commission made known its decision, it was an- it operates under the grand
giving up the eight-hour-day rights and time and half time for overtime.
nounced by representatives of the railroads that the rates
would be posted on Dec. 30 to become effective Jan. 4.
Notes as Legal Tender Suggested—NonThe increases, in the form of surcharges, are those author- Treasury
Bearing Issue to Expand Currency in
Interest
ized as an emergency measure by the Commission in an
Advocated by Senator Shipstead.
Circulation
effort to assist many lines over a financial crisis. The
necessary money in the form of nonof
issuance
The
surcharges will be placed in the hands of the Railroad Credit
Corporation and by it loaned to carriers unable to meet the nterest bearing Treasury notes, making them legal tender
for the payment of public and private debts, was advocated
Interest on their bonds from net earnings.
The surcharged are of $3 and $6 per carload. Agricultural by Senator Henrik Shipstead (Farmer-Labor), of Minnesota,
in a radio address Dec. 21 over the National Broadcasting
commodities are exempt from the increase.
Company's network. The "United States Dialy" of Dec.
in giving the text of the address said:
22,
Railroads
from
Bar
Would
Couzens
ParticipaSenator
Senator Shipstead asserted that the proposed Government corporation
tion in Reconstruction Finance Corporation— with a capital of$500,000,000"Is in fast a Government banking corporation,
Daniel Willard of Baltimore 8,c Ohio RR. Asks throwing the credit of the Government back of these institutions and
guaranteeing their assets."
United States Loans for Rail Lines.
Suggest Finance Plan.
of
Mich.),
Chairman
(Rep.,
the
Senator Couzens
Inter"In my opinion," he said. "a better way for expanding the currency
State Commerce Committee of the Senate, will do everything than that proposed by this Government banking corporation would be
money in the form of nonin his power to excise from the Reconstruction Finance Corp. for the Federal Government to issue necessarylegal
tender for the payment
interest bearing Treasury notes, making them
bill now being considered by a subcommittee of the Senate of debts public and private to be retired after a period of years through
Banking and Currency group specific provisions for Federal taxation as bonds are retired."
Senator Shipstead's address follows in full test:
aid of the railroads. A Washington dispatch, Dec. 21, to the
In this country the solution of all governmental problems rests in the
reporting
this,
York
"Journal of Commerce,"
continued: final analysis with you people. The Government of the United States
New
Practically unanimous assent to the marshalling and distributing plan
has been given by eligible Class I railroads covering 229.053 miles of road.
One dissent was made by a railroad comprising 150 miles. Every effort
will be made by the railroads to make the plan effective by Jan. 1 1932.
Couzens made this announcement after participating in the afternoon
bearings before the subcommittee at which Daniel Willard, •President of
the Baltimore & Ohio system, detailed the financial plight of the carriers.
The Michigan progressive already has before the Senate a resolution
proving broad investigation of all phases of railroad operation, including
the unemployment situation. This measure was adopted to-day, but the
action was rescinded, and it will be brought up again after the Christmas
recess.
Couzens' objection to including the railroad clause in the bill of Senator
Walcott (Rep., Conn.) creating the Reconstruction Finance Corp. Is based
upon his assertion that the Inter-State Commerce Commission is the proper
body to which the railways should go for authorization for loans to meet
their various obligations.
was created to be your servant. There are many problems confronting
your Government to-day. Time does not permit me to call your attention
to more than one of them. I believe the most outstanding problem that
confronts the world to-day Is the question of how international public and
private debts can be paid, business restored, and unemployment eliminated.
A solution is being sought for this problem through the extension of
credit in one form or another. It is plain that this is not a solution. It
has been tried for 10 years and It has proven a failure. Juggling of credits
back and forth is not paying debts. It only postpones payment and leaves
the problem unsolved, and increases the debts.
As a result our credit system is breaking down and we have what is called
a "paralysis of credit." As this condition progresses we have a growing
paralysis of business, agriculture, finance, industry and labor. This must
necessarily be so because business, finance and industry are based upon
4268
FINANCIAL CHRONICLE
credit and the basis of credit Is confidence.
As confidence and credit
disappear values disappear. As values disappear business further becomes
paralyzed,revenues decrease, unemployment increases and prices decline.
Discusses Gold Demand.
The falling price level is in my onion the greatest menace to the world
to-day. The descending price level of commodities is destroying all values.
The descending prices of commodities are in turn due to the increasing
demand for gold. The Increasing demand for gold is due to the creation
of large obligations of debts payable in gold within the last 15
years.
Nations on the gold standard will accept payment for debts in only one
commodity and that is gold.
As a result, the value of gold is gradually increasing and consequently
the value of other commodities gradually decreasing. The production of
gold has not kept pace with the creation of debts. Therefore we are suffering from a lack of a means of payment. It is difficult to estimate the
amount of obligations outstanding payable in gold, but the gold supply
with which to pay them is infinitesimal In comparison.
The purpose of trade is to exchange goods, both internationally and within
our own country. People who are neighbors can exchange their goods
back and forth in the neighborhood, but if they live long distances apart
there must be a medium of exchange sufficient in quantity to make settlement possible. Such a medium of exchange is called money.
[VoL. 123.
Cites Price Changes.
But some will say "This is increasing the supply of money, that is,
cheapening money and making it possible to pay debts in cheap money."
I reply by saying "Your money is dishonest now, because it is 50% dearer
than when the debts were incurred under the high price level. By deflating the circulating medium you have deflated prices. The farmer must
produce two or three times more commodities now to pay his taxes and
interest than when his debt was incurred. We should restore the value of
money to the value it had when farmers and commerce incurred their indebtedness. When a debtor can pay a debt in money of the same value
in which the debt was incurred, then he is paying his debt in honest coin."
I believe this would go far in restoring commodity price levels, values,
business, revenues of private citizens and the Government, and abolish
unemployment. I do not mean to say that this would solve all our problems. I hope to have the pleasure of discussing some of the others with
you at some future time.
Coast of War to United States Put at $52,000,000,000.
by Professor Clark of Columbia Univeristy.
The tangible cost of the World War to the United States,
if the war debts are collected, is fixed at 852,000,000,000 by
Professor John M. Clark of Columbia University in a book
to be published by Yale University, according to Associated
Press accounts from New Haven Dec. 18, from which we also
quote the following:
Creation of Money.
Money is created by law and by law made lawful for payment of all
debts, public and private. There is, however, less
than five billions of
real money in the United States. Bank deposits to the amount
of $60.000,000,000 or $70,000,000.000 are not lawful money. Deposits are
mainly credit, evidence of debt. The medium of exchange through which
payment for goods is made has been furnished to the extent of
The National outlay of goods and service at the time of the conflict
about 9%
by bank checks. Bank checks are not lawful money and they are not legal is set at $32,000,000,000. The economic
burden of death and disability,
tender for payment of debts. They will be accepted in payment of debts ncluding loss of income to the affected persons,
is given as $10,000,000,000,
if the creditor is confident that the check is good. Our banking
system is with the same amount for compensation of veterans and dependents.
based upon credit and credit is again based on confidence.
Should the United States be unable to collect its war debts, Professor
As confidence disappears, confidence in banks and bank checks disap- Clark estimates another $38,000,000.000, mostly
principal and interest
pears and to that extent the use of checks as a medium
of exchange dis- on the domestic war debt, would be added to the total cost.
appears.
As the medium of exchange is restricted in volume, prices again fall and
the depression increases in intensity. As the depression increases
in force, Restoration of Silver
Value Through Sales Agreement
revenues of citizens disappear and consequently revenues
of the Government disappear, making heavier taxes necessary. To restore business,
Proposed by Committee of Experts of International
employment and revenues, public and private, we must restore medium
a
Chamber of Commerce.
of exchange in sufficient quantity to make interchange
of goods possible
and so break the present trade blockade.
Restoration of silver value through a sales agreement
Advocates More Money.
Most of the nations of the world have found it
necessary to do this.
It is gradually dawning upon us that we must do it
ourselves. Farmers
cannot pay their mortgages on the present price level.
Farm mortgages,
like all other values, are declining because of inability
to make payment.
An expansion of the currency is necessary to restore prices.
We must put
more money in circulation.
A year ago the Federal Reserve Board cut the rediscount
rates, evidently
hoping to be able to expand credits and so restore prices,
as was done in
1924. but so far the expected results have not been accomplished
. The
credit system based on confidence cannot be expanded on
falling prices
and loss of confidence.
We must, therefore, look around for other methods.
One method has
been suggested by men of affairs in industry, commerce
and business.
That is, the restoring of silver as money by the nations
of the world.
Money System Illustrated.
Former Finance Minister Joseph Calliana of France,
who saved the
post-war financial situation in that country by his courageous
action and
intelligent understanding of finance, says of these
conditions:
"All the money systems of the world may be
represented
as an upside
down pyramid of paper notes resting on a point gold.
All that is necessary
Is to shake that gold point Just the least bitofto
make the whole edifice
tremble. What facilities that offers for speculators!
There is only one
remedy. It is not that there should be any
n of gold, as is
being childishly suggested. Gold has its ownredistributio
law which it obeys. What
must be done is that another monetary metal should
be joined to it.
Platinum has been suggested. I would prefer that
silver, which was
stupidly demonetized, should be rehabilitated."
However, it is agreed that restoring silver as money is practical
only if
agreed to by the leading nations.
Discusses Proposed Plan.
To relieve the banks, railroads, life insurance companies of assets
they
cannot now dispose of, the Administration is now proposing in
a bill to
create a Government corporation with a capital of $500,000,000, to loan
funds to and discount their obligations with the Federal Reserve Bank in
the amount of $1,500,000,000. This will inflate the currency in circulation in that amount. The obligations and the liabilities of the corporation
will be assumed by the Government. It Is In fact a Government banking
corporation, throwing the credit of the Government back to these institutions and guaranteeing their assets.
While this may, if properly managed, be helpful, I want to say that, in
my opinion, the temporary aid to these Institutions is like repairing the
roof of a house and neglecting the foundation. The foundation of all of
these institutions is agricultural prices. This was proven early this fall,
when farm prices temporarily rose and all prices rose with them. When
farm prices declined, all other prices declined in sympathy. To restore
values we must restore farm prices. They are the foundation of all values.
Farm mortgages should be made eligible as collateral for discount with the
Federal Reserve Bank, thereby giving them their proper status in relation
to other securities.
In my opinion a better way for expanding the currency than that proposed by this Government banking corporation would be for the Federal
Government to issue necessary money in the form of non-interest-bearing
Treasury notes, making them legal tender for the payment of debts, public
and private, to be retired after a period of years through taxation,
as bonds
are retired. This would prevent possible loss to the Government that
might be sustained by having to acquire assets that cannot be collected
under the proposed plan now before Congress.
If the necessary amount were issued it would have an immediate effect
upon commodity price levels. Business would be restored. Values
and
confidence would also be restored, and the institutions now in trouble would
be able to resume use of their credit without the guarantee of the Government. This we have done before. Making these notes legal tender
for
the payment of all debts, public and private, will keep them
at par as your
silver certificates have remained at par for years, while their
intrinsic value
Is now only about 25 cents on the dollar.
It is the credit of the Government back of them that keeps them at par. Ten dollars of
these will buy
as much for you in the department stores
as $10 in gold.
among the major producing nations tops a four-point
program which the International Chamber of Commerce
has initiated throughout the world, said Associated Press
accounts from Washington, Nov. 9, which also had the
following to say:
Silas H. Strawn. Chairman of the Chamber's American committee, made
public the report of a Committee of Experts. He said negotiations already
were under way with private groups and governments primarily concerned
to make the recommendations effective.
The other proposals are that any government finding itself unable to secure a sufficient supply of gold "might consider the purchase of an amount
of silver against which notes of low denomination, covered by silver to almost the full value of the gold coin which it substitutes, would be issued."
That the International Chamber seek to have governments "restore their
subsidairy coinages to pre-war fineness, within the limits of their national
law" to help restore confidence in the value of the metal.
That those "interested in the sale of silver might with advantage emulate
the example set in other industries by the establishment of research institutes for the purpose of devising new uses and expanding present uses
of the product."
At the same time the Experts expressed an opinion that no international conference for stabilizing the silver industry is likely under governmental sponsorship, except as a side issue of a general economic conference.
Referring to the proposed sales agreement,it said the best results probably
could be achieved "by friendly co-operation and careful observation of
prices, with a view to establishing a somewhat higher, although not too
high, level compatible with the interests of sellers as well as holders."
Stating that the Expert Committee, in addition to Mr.
Stra,wn, included Ernest Franklin of Samuel Montagu &
Co., of London; E. D. Van Walree of Bernn, Holland, and
Marshall W. Tuthill of Tuthill & Co., of New York, the
Washington correspondent of the New York "Times" on
Nov. 8 said:
In general, the conclusions of the Expert Committee are based on the
likelihood that neither an international conference on silver nor monetization will happen in the immediate future.
Only a "Reasonable Time" Needed.
In the opinion of the Expert Committee, its recommendation for an
international selling agreement "can be carried into effect within a reasonable time." The matter of the monetization of silver, it holds, can
be "studied at leisure with a view to future action."
As for the use of silver in industry the committee suggests the establishment of research institutes to devise new uses and expand the present
use
of the metal, and puts out the thought that "a considerable improvemen
t in
the industrial demand would immediately follow the discovery of a satisfactory process which would eliminate the tendency of that
metal to
tarnish,"
In addition to holding that it was not to be expected that a
conference
of governments would take place in the near future, the Expert Committee
unanimously agreed that proposals for the establishment of a bimetallic
system of currency, or, alternately, for the remonetization of silver,
"stand
no chance of early application in practice."
"That England, France and other countries should increase the standard of their subsidiary currency, is, we are informed, most unlikely
to
happen," the committee says.
Disagreeing with the view of a Senate subcommittee, the Committee
takes the position that the fall in the price of silver has not been more
than a contributary cause of the financial and economic troubles of China.
"Indeed," it says, "China is the one country where prices in daily life
have varied least.
Agrees on Benefit to China.
The Committee assents, however, to the view of the Senate subcommittee that a relative stability in the price of silver would contribute materially toward a gradual opening of the interior of China to trade. IS
DEC. 26 1931.]
FINANCIAL CHRONICLE
4269
With that introduction the Committee notes that "the difficulty is with
holds that the difficulty in bringing about stability in prices lies with
China" and then gives its reasons for believing that it should not be inChina and not with India, but that it should not be insurmountable.
Granting that a rise in the price of the metal would mean a rise in China surmountable.
In concluding its report, the Committee calls attention without other
exchange and that this, if material, would tend to diminish the exports
and increase the imports of that country, the Committee acknowledges comment to "the unreasonably wide margin which exists between the,
that such a course would be of undoubted benefit to exporters to China, wholesale price of silver and the retail price of the articles manufactured,
but adds that "it remains to be seen to what extent the increased imports from silver, after making due allowance for labor costs.",..s..N,liciajand
would consist of silver." A too sudden or too large a rise in the price
should be avoided "and it would also be a grave error to decide beforehand
Michigan Plan to Release Frozen Credits Approvedjby,
what price should be aimed at?!
State Securities Commission.
After reviewing these and other factors, the Committee of Experts
proposes its plan for an international silver consortium.
States Daily" reports the following from
"United
The
"Your Committee," says the report, "accordingly recommends that, if
the International Chamber. of Commerce wishes to retain the subject of Lansing, Mich., Nov. 27:
silver on its agenda, it should investigate the possibilities of bringing the
The State Securities Commission has announced approval of a plan which
North American producers and refiners of silver into a sales agreement with
they describe as a miniature of the Hoover plan for releasing frozen credits
the government of India.
approved the application of the First State Savings
"For this purpose, of course, the producers of the United States, in in banks. They have
permission to deposit $149,000 In mortgages.
order to conform to their national laws, could only be organized from the Bank of Muskegon Heights for
Muskegon, which in turn is to issue car..
point of view of export sales. Other producers of any substantial quantity with the Bankers' Trust Co. of
This plan, it is stated at
should naturally be welcomed into the agreement, while the importance tificates of participation for the same amount.
Muskegon Heights
of bringing the Bank of Spain and kindred institutions into these delibera- the Commission Office, will relieve frozen credits of the
institution.
tions should not be lost sight of.
Agreement Hinges on India.
"A selling agreement which does not include the Indian Government would Attorney General Morris of North Dakota Rules Banks
not be practicable, and to expect that government to agree not to sell
May Lend on Gold Notes of National Credit Corp.
except at a price materially higher than that fixed for the producers would
It was stated in a Bismarck, N. Dak., dispatch, Nov.
be unjust and futile. The several parties must work together, and it
would naturally be provided that any participant can withdraw from the to the "United States Daily" "that State Attorney-General
agreement at agreed notice, either temporarily or permanently, but they
banking corporations and assomust bind themselves not to sell independently until the expiration of the James Morris has ruled that
laws of North Dakota legally
agreement.
the
under
organized
ciations
"Possible difficulties may occur. For instance, if, in order to avoid
Credit Corp. upon its gold
National
the
to
money
may
lend
too severe a break in price, the selling consortium should find itself forced
demand and time deposits
net
the
of
2%
to retain, even temporarily, an unwieldly proportion of the amounts notes, up to either
Which it has to sell, there might be a risk of some of its component members
and surplus of the subscribing bank,
capital
the
of
10%
or
becoming restive and threatening to act independently; but risks such as
this must be run, and silver is easier to control than almost any other whichever is less.
product, certainly far more so than coffee or rubber.
"The Committee further recommends that, if it is true that a scarcity Harry J. Haas, President of A. B. A., Foresees Time
of gold is to be expected, it would not be impossible to alleviate this scarcity
When United States Must Defend Position as
to a certain extent by the use of silver.
World's Financial Centre—Says Country Became
"It is not proposed to fix a ratio between the respective prices of gold
and silver, but it is suggested that any government which finds it imGreat Creditor Nation Before Trained to Re—
possible to secure a sufficient supply of gold might consider the purchase
in Our Becoming too Selfsponsibilities—Danger
of an amount of silver against which notes of low denomination, covered
by silver to almost the full value of the gold coin which it substitutes,
Satisfied.
would be issued; these notes would circulate concurrently with the paper
The time will undoubtedly come when the United States
currency which is partly covered by gold.
its position as the world's
27;
will have to be prepared to defend
Suggests Proportion of One to Three.
centre, Harry J. Haas, President of the American
"This can be attained by making the silver certificates receivable for financial
all payments to the government. If they are issued to no higher proportion Bankers Association,and Vice-President of the First National
in relation to gold than, say, one to three, there would not be much risk Bank of Philadelphia, declared on Dec. 17 in an address
Of seeing these silver certificates drop in value below that of the notes partly
before the Bankers Forum, American Institute of Banking,
covered by gold.
"The basis of credit would thus be widened by the simple means of at the Hotel Pennsylvania. Mr. Haas and J. Stewart
using the authority of the government, and silver would benefit as long Baker, President of the New York State Bankers Associaas the purchase could be effected at a low price. If at any time the silver
at a dinner at which Frederick W.
against which the certificates were issued should rise in price as expressed in tion, were guests of honor
gold, there would be no harm in selling the silver and replacing it by gold." Gehle of the Chase National Bank presided as toastmaster.
In reviewing conditions affecting silver as a preface to its recommenMr. Haas said:
dations, the Committee expresses the opinion that the best results "may
It is possible, though not probable, that we of our generation may again
be achieved by friendly co-operation and careful observation of prices,
world's financial centre moved to other parts of the world. Who
with a view to establishing a somewhat higher, although not too high, see the
what a great people may be in the making somewhere in the
level compatible with the interests of sellers and buyers as well as holders. knows but
who in the course of time may develop a race heartier than ours;
"As regards excess production," the Committee continues, "it should world
produce at less cost than ourselves; who shall be self-sustaining
be remembered that about 65% of the world output of silver is a by- who can
intensive diversification; who shall export to other parts of the
product of ores chiefly valuable for copper,lead and zinc; this silver will be by highly
in excess of their imports; whose tourists shall spend their travel
far
world
produced and will be inevitably put on the market. Apparently the new
within their own borders so that gold shall flow to their shores in
fields which are open to the exploitation of these ores do not promise any money
abundance and remain there so that they shall become richer and richer,
considerable by-production of silver.
by year, until they shall have the world's store of gold. Who knows
"The reduction in consumption, on the other hand, has been created by year
become the luxury-loving nation of history and the
the increasing disuse of silver for monetary purposes, but the use for the but what we may
hordes of another nation may meet us and excel us in our enterprises.
industrial arts continues much as before. And, finally. it should be re- hardy
there not some spark of danger in our becoming too self-satisfied and not
membered that while the production and offering of silver on the market Is
position until it is too late?
are farily constant, the demand is erratic and unreliable at all times and realize our
I do not wish to be an alarmist and none of us shall probably live to see
violent fluctuations are caused thereby.
this day, but does it not put upon us a responsibility to see that we pass
Fluctuations Upset Trade.
on to posterity not a race of self-indulgent people resting upon the efforts
"It can hardly be disputed that the wide and constant fluctuations in the of past generations, but rather to pass on a generation of able-bodied,
price of silver are a serious obstacle to international trade as a whole, serious-minded people who realize their responsibility and shall measure
and that a rise is much to be desired. The country which is most concerned up to it.
with the course of silver prices is. naturally, China. China has suffered
Explaining that this country within the past 30 years
much of recent years, but we do not believe that the fall in silver has been
domination of the world banking picture, the
more than a contributory cause. Indeed, China is the one country where has risen to
speaker pointed out that in 1910 not a single American
prices in daily life have varied least."
After expressing its conviction that a gradual opening of the Chinese in- bank was included in the group of the ten largest banks
terior to trade would be materially helped by a relative stability of the
in the worrld. Now New York stands as the greatest
price of silver, the Committee remarks:
"Notwithstanding the desire of the Chinese Government to put the cur- banking centre, with the largest bank in the world measured
rency of the country upon a gold basis, it can hardly be questioned that,
for many years to come,silver will remain the principal basis of monetary both by capital funds and deposits—a bank with total
circulation in China. We believe that, at the moment, China could bear
world's leading.
a moderate and gradual rise in the gold value of its currency, but not a resources more than five times as large as the
heavy or rapid one.
say:
Mr.
Haas
went
on
to
1920.
in
bank
"So far as India is concerned, apart from the interest of the governWe of our generation are fortunate to have lived during such an imment with its vast stock of silver rupees, a sudden and violent rise in the
price of silver could only check its absorption by the population of that portant era in finance. No other people during the past three centuries
country."
of the world's history have had such an experience. A combination of
American Producers' Part.
circumstances brought it about during our life time. It is probable that
Noting that the estimate of silver production this year is less than 200,- with our steady growth of merchandise credit with the rest of the world
000,000 ounces, the Committee says that the larger production is con- year by year increasing our national wealth accordingly that statisticians
trolled by a few corporations in America which, it contends, "if they had might have figured the approximate time when we should become the
a working agreement with the Indian Treasury, giving all participants great creditor nation of the world through our own efforts and without
a reasonable quota of world sales, should be capable of keeping silver at misfortune to any other nationalities.
The World War, however, accentuated our financial rise and, may I
a price fair to both buyers and sellers so long as they support the market
with judgment."
say, perhaps before we were fully trained to its responsibilities. With
It is not generally realized, the Committee points out, that at the present increased success comes increased responsibility. We have had the success
price the value of a year's production of silver is only about $56,000,000. and we are on our way to the full realization of its responsibilities.
While not apologizing for our shortcomings, we must understand that
Of the annual demand of about 50.000,000 ounces for industry, the Committee says, we may take it that this would be bought almost irrespective since our rise to the world's financial eminence we havehada troubled
a
l ps
the like of which no past generations have ever experienced. These
world
price.
of
"There remains, therefore," it adds, "the Indian and Chinese demands. conditions have naturally not been conducive to confidence,
The former has remained steady for the last three years and does not when the world shall have assumed a more stable position our confidence
shall have increased proportionately and one successful world venture after
depend entirely on the price."
FINANCIAL CHRONICLE
4270
another shall be accomplished until experience has shown that by and large
our efforts have proven safe and sound; then we shall take our proper
place in the sun.
It is interesting and important to note that England has for centuries
made not only temporary loans and advances in all parts of the world, but
they have made permanent investments in these countries. Temporary
loans give only, as the term implies, a temporary financial interest and
when repaid there is no lasting or permanent advantage, while permanent
investments may give control or representation In the business and thereby
Influence the channels of future trade.
(VOL. 133.
F. Fowler, Charles W. Devoy and W. R. Mollineaux Jr.,
Trust Officers, and Paul E. Landon, Asst. Trust Officer.
The directors of the Manufacturers Trust Co. and the
Chatham & Phenix National Bank & Trust Co. of this city,
formally approved on Dec. 24 the agreement to merge the
two institutions, which was voted upon on Dec. 3. A meeting of the stockholders of the respective banks will be held
in January to ratify the merger. The New York "Evening
'Post"
of Dec. 24 said:
Subscriptions in Excess of $85,000 Received by"Bankers'
Following to-day's meeting of the two boards Harvey D. Gibson, Presiand Brokers' Committee"of United Hospital Fund.
dent of the Manufacturers Trust announced the appointment of the two
James Speyer, Chairman, and Charles H. Sabin, Associate following additional directors of the new bank. Ellis P. Earle, President
NiPPissing Mines Co. who is a director of Chatham & Phenix and L.
Chairman, of the "Bankers' and Brokers' Committee" of the of
Boyd Hatch, President and director of the Atlas Utilities Corp.
Hospital
gratified
by
United
Fund of New York, are much
The addition of the new directors fills the complement of 40 members
Wall Street's response to this year's collection, contributions of the new institution which will be known as the Manufacturers Trust Co.
An item regarding the proposed merger appeared in our
having been received in excess of $85,000.
issue
of Dec. 19, page 4102.
In addition to $60,000 previously acknowledged,the following contributions have been received to Dec. 25:
The Central Hanover Bank & Trust Co. of New York
Hartman K.Evans
$100
$1,000 George Blagden
Joseph P. Grace
100 City announces the appointment of Russell Welles, John T.
1,000 Buell & Co
Hallgarten & Co
100
1,000 Mortimer N. Buckner
C. Lang as Assistant Secretaries, and WilMrs. Sidney A. Kirkman__ __ 1,000 Carlisle, Mellick & Co
100 Sinkey and Carl
Lazard Freres
100 liam A. Bayreuther, Arthur F. Bruckner, Paul L. Moore
1,000 C. F. Childs & Co
Gates W.McGarrah
100
1,000 Coleman & Co
Dunlevy Milbank
100 and Lester Heaton as Assistant Treasurers. Messrs. Sinkey,
1,000 H. Content & Co
Mrs. Percy R. Pyne
100
1,000 DeCoppet & Doremus
Welles, Bayreuther and Heaton are at the main office;
Mrs. Moses Taylor
100
Charles
Mason
1,000
Dutcher- -- Mr.& Mrs. Harry E.Ward_ 100 Messrs. Bruckner and Lang at the 35th Street office, and
750 Ernst & Co
Robert S. Brewster
100
500 Evans, Stillman & Co
Coral Invest. Trust Corp--100 Mr. Moore at the 42nd Street office.
500 E. Hayward Ferry
Dr. Ernest Fahnestock
Mrs. Louise Leeds Kennedy"Anonymous"
Ladenburg, Thalmann & CoLogan & Bryan
Agency, Bank of Montreal
Stephen Baker
Hamilton F. Benjamin
Albert E. Goodhart
Mr.& Mrs. Henry Ittleson__
Manufacturers Trust Co..- _ _
Nat'l City Bank of N. Y_-_Newborg & Co
Mr.& Mrs. George B. Post..
'
Charles A. Sackett
Mr.& Mrs. Frederic W.Allen
Edwin M. Bulkley
George W. Davison
William Halls Jr
Adrian Iselin
Harry Sachs
Mr.& Mrs. Samuel Sachs--Mr.& Mrs. Paul Baerwald_ James C. Colgate
Joseph Koshland
F`. B. Keech & Co
Arthur Lipper & Co
Oscar L. Richard
Aldred & Co
500
500
500
500
500
250
250
250
250
250
250
250
250
250
250
200
200
200
200
200
200
200
150
150
150
150
150
150
100
H. G. Freeman
Fred. H.Greenebaum & Co_ _
Halsey, Stuart & Co
Norman Henderson
Mr.& Mrs. Jesse Hirschman_
C. M.Keys & Co
S. Cliffton Mahon
Ferdinand Mayer
Edwin G. Merrill
Mrs. Dunlevy Milbank
C. E. Mitchell
Jansen Noyes
Frederick Osborn
Lewis E. Pierson
Seward Prosser
J. K. Rice Jr. & Co
George B. Robinson
William M. Sevin
Kenneth B. Schley
W. R. K. Taylor
Elisha Walker
Harold T. White
Samuel Woolverton
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
$21,650
Other smaller contributions__ 4,172
Previously acknowledged_ _ _ - 60,000
$85.822
ITEMS ABOUT BANKS, TRUST COMPANIES, &C.
Arrangements were reported made this week for the sale
of a New York Stock Exchange membership for $132,000.
A New York Coffee and Sugar Exchange membership
sold at $5,500, a decline of $500.
The New York Cocoa Exchange membership of John E.
May was reported sold this week to E. L. Cleverly, for
another, for $1,800, an unchanged price from the last
preceding sale.
A National Metal Exchange membership was reported
sold this week for $900, unchanged from last preceding sale.
Shareholders of the Chemical Bank & Trust Company of
New York are asked authority In proxies sent to them on
Dec. 19 to merge the Chemical Securities Corporation into
the bank, such vote to be taken at the Annual Meeting of the
stockholders to be held Jan. 20, 1932. When interviewed,
President Percy H. Johnston said:
"Chemical Securities Corporation was organized as Chemical National
Co., Inc., in the spring of 1928, when the Chemical Bank was a National
bank, for the purpose of doing for the benefit of the stockholders business
which the Chemical could not do under its national charter. Since then,
the Chemical has become a State trust company. The directors consider
that it now has all the powers which it needs for its business as now
conducted and for any business which is in contemplation.
The directors therefore feel that the Securities Corporation Is no longer
needed as a separate entity. Substantial economies can be effected by
absorbing it.
No increase of the Capital stock of the Chemical Bank is contemplated
in this connection. It is merely intended to take the funds and assets of
the Securities Corporation into the surplus, undivided profits and reserves of the Bank.
The Securities Corporation is in liquid condition and has a net Worth of
approximately $17,500,000 at the present market value of its securities. It
has no contingent commitments and no liabilities except for current operating expenses.
The principal executives and employees of the Securities Corporation will
become officers and employees of the Bank."
From the New York "Herald-Tribune" of Dec. 20 we take
the following:
Chemical Securities has engaged largely in the Government, State and
municipal bond business. These activities can be carried on by a department of the bank. The company also has owned most of the $2,000,000
capital stock of the 270 Broadway Corporation which purchased from the
bank the banking house at that address and improved it with a new building.
The stock of Chemical Securities is held by three trustees for the benefit
of all shareholders. These trustees are Mr. Johnson, Robert Walton Goelet
and George E. Roosevelt. Mr. Johnston is Chairman of the Board of the
securities affiliate, while LeRoy W. Campbell is Vice-Chairman, Joseph A.
Bower is President and N. Baxter Jackson is Executive Vice-President.
Chemical Bank, whose main office is at 165 Broadway, has fourteen
branches. As of Sept. 30 it reported total resources of $443,199,954, with
capital of $21,000,000, surplus of $40,000,000, undivided profits of $4,799,518 and deposits of $329,167,998.
On Sept. 12 1930, Chemical National Associates, Inc., was merged
with Chemical Bank and the present securities affiliate. At the time of
this deal Chemical Securities increased it capital and surplus from $9,500,000
to approximately $19,000,000.
At a regular meeting of the Governing Committee of the
New York Stock Exchange, held Dec. 23, the petition of
the members to close the Exchange on Saturday, Dec. 26,
was granted. The New York Curb Exchange and the New
York Produce Exchange will also be closed to-day (Dec. 26).
The New York Coffee and Sugar Exchange, the New York
Cocoa Exchange and the New York Rubber Exchange voted
With regard to the proposed merger of the Chemical Securto close on Dec. 26 and on Saturday, Jan. 2.
ities Corporation into the bank, the New York "Times" of
The following exchanges will also be closed to-day (Dee.26): Dec. 20 commented as follows:
The Chicago Stock Exchange, the Chicago Board of Trade,
A similar step was taken by the Bankers Trust Company in October, when
the Chicago Curb Exchange, the Chicago Livestock Ex- the activities of the Bankers Company of New York were transferred to
change, the Montreal Stock Exchange and the Montreal the bank. Previously the Chatham Phenix National Bank and Trust Company, which is to be merged with the Manufacturers Trust Company, disCurb Exchange.
continued the securities business of its affiliate, the Chatham Phenix CorporaThe directors of the City Bank Farmers Trust Co. of
New York City, the trust company affiliate of the National
City Bank, at a meeting on Dec. 21 elected Edward C. Delafield and William B. Cardozo to the board of the company.
On Dec. 12 Mr. Cardozo, who is a Vice-President of the
trust company, has completed fifty years of service with
that institution. Mr. Delafield who was previously President of the Bank of America, National Association, which
was recently merged with the National City Bank, was also
elected a Vice-President and a member of the Executive
Committee of the trust company. Other elections made at
the meeting follow: William J. Montgomery, Frederick G.
Curry and Adrian M. Massie, Asst. Vice-Presidents; Dudley
tion, and last week the Manhattan Company, which controls the Bank of
Manhattan Trust Company and affiliated organizations, announced the discontinuance of the securities-distributing business of the International Manhattan Company, Inc.
The American Express branch of The Chase National Bank
opened on Dec. 21 at 65 Broadway in the banking quarters
heretofore occupied by the American Express Bank and
Trust Company, a former Chase affiliate. The commercial
and banking business of the American Express Bank and
Trust Company was consolidated with The Chase National
Bank at the close of business Dec. 19. The trust business of
the American Express Bank and Trust Company was consolidated with that of the Equitable Trust Company, like-
DEC. 26 1931.]
FINANCIAL CHRONICLE
wise a Chase affiliate. Items with regard thereto appeared
in these columns Nov. 28, page 3576 and Dec. 19, page 4103.
Members of the former Board of Directors of the American
Express Bank and Trust Company have become members of
an advisory committee of the American Express branch of
the Chase. The official staff of the branch is as follows:
Cornelius J. Murray, Vice-President; Kenly Saville, Second
Vice-President and Manager; Edward J. Donahue, Second
Vice-President; C. Leland Getz, Assistant Cashier; Leo V.
Van Sant, Assistant Cashier; August H. Tiemeyer, Assistant
Manager. All these were formerly officers of the American
Express Bank and Trust Company. Two other former American Express Bank officers have been appointed to the
official staff of the Chase at the head office; John F. Schmid
as Vice-President in the foreign department, and Paul C.
Beardslee as Assistant Trust Officer.
4271
The State manual lists savings deposits at 83.190,000, and commercial
deposits at $2,700,000. The Bank was incorporated in 1910 with a capital
of 3800.000. Officials said arrangements were being made with New York
banks to strengthen the financial position of the Institution.
a"
A dispatch by the Associated Press from New —ff=ven,
Conn., on Dec. 23 also reported that the private bankfof
Sanditz & Traurig at Waterbury, a heavy depositor in the
Merchants' Trust, closed during the morning (Dec. 23
because it could not obtain funds from the other bank to
meet depositors' demands. Officers said, however, the bank
is "100% solvent."
Charles R. Butts, President of Norwich Savings:Society,
Norwich, Conn., has been appointed President of Thames
Bank & Trust Co. of Norwich, succeeding Francis E. Storer,
resigned, according to advices from Hartford, Conn., on
Dec. 23 to the "Wall Street Journal."
Press advices from New Haven, Conn., on
Dec. 23 reported the closing on that day of the Broadway
Bank & Trust Co. of that city Its President, Charles G.
Morris, stated that the action was taken upon order of the
State Bank Commissioner. The institution was incorporated
in 1913 with a capital of $400,000. The dispatch continuing
Two small New York State banks, the First National Bank ia=repowie •
A recent statement showed savings deposits of $1,607,365, general
of Gasport and the First National Bank of Middleport, a
deposits of $846.170, and certificates of deposit of $202,268. Christmas
few miles East of Lockport, N. Y., failed to open their doors savings
of $23,658 were believed to have been liquidated.
on Dec. 18, according to a dispatch from Lockport by the
A New Haven dispatch Dec. 23 to the New York "Herald
Associated Press. The account went on to say:
Tribune" contained additional information regarding the
C. Charles Mack, President of the Gasped Bank, said the action was failure, as follows:
comment.
in the interests of depositors but made no further
rrAssociated
The Banca Commerciale Italiana Agency in New York
and the Banat Commerciale Italiana Trust Company have
paid to all employees the usual Christmas bonus amounting
to 8% of the yearly salaries.
being taken
Directors of the Middleport Bank issued a statement through President
George R. Sheldon, saying they felt it their duty to close the bank "in justice
to the balance of our depositors.
The New York State Banking Department on Dec. 4
approved an increase in the capital of the Bank of Orchard
Park, at Orchard Park, N. Y., from $60,000 to $80,000
On Dec. 16 Joseph A. Broderick, State Superintendent of
Banks for New York, announced that he had that day, at
the request of its directors, taken possession of the business
and property of the State Bank of Hilton at Hilton, N. Y.,
because of • the non-liquid condition and depreciation in the
value of its assets. The institution's deposit liabilities at
the close of business Dec. 15 last, were approximately
$776,000.
Several hundred Yale students and professors face prospects of a dismal
holiday through the closing here to-day of the Broadway Bank & Trust
Co. which held a substantial amount of their funds.
The institution had 82,500,0000 in deposits and was ordered to cease business by George J. Bassett, State Banking Commissioner, only after efforts
by the university authorities and other banking interests of the city had
failed to stem the rush of withdrawals.
Professor William Lyon Phelps, of Yale, and Charles L. Kirshner,
principal-emeritus of the New Haven High School, had both been directors
of the institution, but had resigned several weeks ago.
The run on the Bank was attributed to the closing last week of the Hamden Bank St Trust Co., of Hamden, Conn., a suburb of New Haven, and
alleged "unfavorable rumors" which persisted even after the Clearing House
Association of New Haven had issued a reassuring statement on the Bank's
condition. This Association had announced that it had put up around
$500.000 to help the Bank meet the demands of depositors and that each
of the directors of the institution had signed personal notes for the sum.
Neither Professor Phelps nor Mr. Kirshner had signed these notes, however,
although officers of the Clearing House Association, it was said, had requested them to do so.
The Yale University authorities also offered aid through furnishing
$100,000 on a mortgage on the Bank building.
The New York State Banking Department on Dec. 15
approved a proposed increase from $100,000 to $200,000 in
Hartfrd, Conn., advices to the New York "Journal of
the capital of the Bank of Millbrook at Millbrook, N. Y. Commerce" on Dec. 18 stated that the Windsor Locks Trust
The Fort Covington Bank-ing Co., operated by James & Safe Deposit Co. at Windsor Locks, Conn., had closed on
Macartney and Thomas A. Chisholm, private bankers of the afternoon of that day. The institution, the dispatch said,
Franklin County, N. Y., was taken over by the New York was capitalized at $50,000 with surplus and undivided profits
State Superintendent of Banks for liquidation on Dec. 21, of $182,000, and had total deposits of more than $1,100,000.
according to Albany advices on the date named to the
Closing of the Danielson Trust Co. of Danielson, Conn.,
New York "Journal of Commerce." Deposit liabilities at
the close of business Dec. 19 were approximately $180,000, was indicated in the following Associated Press advices from
that place yesterday, Dec. 18:
the dispatch stated.
The Danielson Trust Co., its assets impaired by the depreciation of
On Dec. 17 announcement w- as made by the First National securities, remained closed to-day by order of the Board of Directors.
A dispatch by the Associated Press from Hartford, Conn.,
Bank & Trust Co. of Bridgeport, Conn., that it had absorbed the Newfield Bank & Trust Co. of Bridgeport, ac- on the same day stated that the assets of the institution as
cording to Bridgeport advice on that date to the New York reported on June 30 last were $3,103,000, and that its savings
accounts and trust funds were segregated and would not be
"Herald Tribune," which continuing said:
&
Bank
Newfield
Trust
the
Co.
with
new
brings
7,000
consolidation
affected by the closing. Commercial deposits were reported
The
accounts to the First National Bank & Trust Co. and adds deposit balances at $750,000.
held
522,000,000
more than $1,500,000 to the current assets exceeding
of
by that institution.
Closing of the Connecticut River National Bank of CharlesEdmund S. Wolfe is Chairman of the Board and President
town, N. H., was indicated in the following dispatch by the
of the First National Bank & Trust Co.
Associated Press from Charlestown on Dec. 20:
Officers of the Connecticut River National Bank announced to-nigha
Effective Dec. 17 the Bridgeport-City Trust Co. of that
the institution will not open to-morrow and that a National bank
Bridgeport, Conn., took over the business of the Guaranty examiner is on his way to take charge. Heavy withdrawals made the
Bank & Trust Co. of that city, adding about $1,500,000 to suspension necessary. Organized in1853,the bank has deposits of S400.000,
capital of $25.000 and surplus of $10,0003
the assets of the former,according to Associated Press advices bonded investments of $100,000,
from Bridgeport on Dec. 17. Horace B. Merwin, President
The Charlestown Trust Co. of Boston, Mass., failed to
of the Bridgeport-City Trust Co., in a statement was open for business on Monday of this week, Dec. 21, accordreported as saying:
ing to a dispatch by the Associated Press from Boston on,
At a meeting of the directors of the Bridgeport-City Trust Co. held
that date, which added:
this morning, it was unanimously voted to merge its business with that
of the Guaranty Bank & Trust Co., which action was confirmed by a similar
move by the directors of the Guaranty Bank & Trust Co.
This merger will add over 4,000 new customers and will add deposit
balances of nearly 31,500.000 to the assets of the Bridgeport-City Trust Co.
°McLain said the Bank had been taken under the supervision of the
State Bank Commissioner at the request of the directors.
The Bank was incorporated Dec. 8 1910. and opened for business two
months later. Its President is Richard S. Tooling, a former State Senator.
In its last statement, Sept. 29 1931, the Charlestown
By order of George J. Bassett, State Bank Commissioner Trust Co. showed capital of $200,000 with surplus of $47
for Connecticut, the Merchants' Trust Co. of Waterbury, and undivided profits of $47,051, and total deposits of
Conn., was closed on Dec. 23. Associated Press advices $3,283,470.
from Waterbury, reporting the closing, said in part:
4272
FINANCIAL CHRONICLE
According to the Boston "Transcript" of Dec. 15, payment of a 25% dividend to the 12,000 depositors in the
savings department of the closed Industrial Bank & Trust
Co. of Roxbury (Boston), Mass., was authorized on that
day by Judge Crosby of the Supreme Court at the request
of John M. Swift, liquidating agent. The disbursement,
representing an outlay of $410,581.03, was authorized as of
Dec. 21, it was stated. Our last reference to the affairs of
this bank, which was closed Mar. 19 of the present year,
appeared in the "Chronicle" of July 18 1931, page 391.
The Seacoast Trust Co.
of Asbury Park, N. J., the third
largest bank in Monmouth County, was closed on Tuesday,
Dec. 22, by the New Jersey State Department of Banking &
Insurance, at the request of its directors, who said they
wished the action taken "to protect funds of depositors." The
bank's last statement, dated Sept. 29, showed deposits of
$4,495,209. A dispatch from Asbury Park to the New York
"Herald-Tribune" on Dec. 22, from which the foregoing Is
taken, went on to say:
It was explained the move had been made necessary by the slowness of
[VOL. 133.
would be available the next day for depositors of the closed
Farmers' National Bank of Hickory, Pa., according to an
announcement by Harry G. Wilson, receiver for the institution. The advices went on to say:
A total of 845 persons will receive $108,220.91, it was stated. Presentation of certificates will be necessary. It is the first dividend paid by
the institution, which closed its doors last May.
The First National Bank of Willoughby, Ohio, with
capital of $100,000, was placed in voluntary liquidation on
Nov. 16 1931. The institution was absorbed by the Cleveland Trust Co. of Cleveland, Ohio.
Fifth Third Union Trust
Co. of Cincinnati, Ohio, has
declared a quarterly dividend of $2.50 payable Jan. 2 to
stock of record Dec. 24, placing stock on a $10 annual basis,
against $14 previously, as reported in advices from Cincinnati
yesterday, Dec. 18, to the "Wall Street Journal," which
furthermore said:
E. W. Edwards, President, stated that earnings for the year exceed the
usual dividend requirement by a considerable margin.
A bonus of 2% of annual salaries was declared for employees, payable
Dec. 18.
liquidation of the bank's paper, a steady series of withdrawals of deposits
since July and the failure of negotiations with a New York financial institution for purchase of the Seacoast bank.
Officers of other banks here had been represented in the voting trust
which has controlled the Seacoast bank since its reorganization on Aug.
27. J. Lyle Einmonth, publisher of "The Asbury Park Press," has been
President since that time. An audit made at the bank on Nov. 9 showed
$374,000 in excess of liabilities.
The new Commerce Guardian Bank of Toledo, Ohio,
organized to replace the Commerce Guardian Trust &
Savings Bank of that city which closed in August last,
began business on Dec. 15, a day ahead of its scheduled
time for opening. Dean Higgins is President of the new
bank. His appointment was noted in the "Chronicle" of
Dec. 5, page 3728. The Toledo "Blade" of Dec. 14, in
Ogden H. Hammond assum- ed active charge of the First reporting the opening of the institution, said in part:
National Bank of Hoboken, N. J., as President on Monday
The new bank is entirely liquid with $1.25 of cash for every $1 of deof this week, Dec. 21. Mr. Hammond, who is a former posits. Payment of the 30% dividend to depositors of the old Commerce
Guardian Trust & Savings Bank started Monday and will continue throughUnited States Ambassador to Spain, was chosen to head the out the week involving payment to Toledoans of more than $5,000,000.
Dean Higgins,President,announced completion of personnel of the new
Institution at a special meeting of the directors on Dec. 19.
Bartlett E.
The "Jersey Observer," from which the above information bank. Monday with Edward G. Kirby as Vice-President,
Emery, Vice-President & Trust Officer; Harry P. Caves, Secretary &
is obtained, continuing, said:
Treasurer and W. Lockwood Lamb and Louis C. Ruth, Assistant SecMr. Hammond resigned as President of the Hoboken Land & Improvement Co. last week, but remained in the organization as Chairman of the
Board of directors, while Norman H. Titus was elected President. Mr.
Hammond is a former banker and was elected a member of the First National's board of directors some time ago.
The stockholders of the bank voted an increase of $375.000 in the capital
stock of the bank on Oct. 19 and the increase has been subscribed and
added to the capital and surplus of the bank.
retaries and Assistant Treasurers.
Mr. Higgins also announced that the Commerce Guardian will deposit
with the State Treasurer Monday, $100,000 in bonds to qualify the bank
to handle trust business.
Sufficient cash has been set up in the new bank to cover preferred claims,
proved and unproved, expenses and other similar items.
The directors of the Standard Trust Co. of Cleveland,
Of The Citizens' Bank & Trust Co. of East Lansdowne, Pa. with deposits of approximately $14,000,000, announced
(near Philadelphia), was taken over by the Pennsylvania
State Banking Department on Dec. 23, according to Associated Press advices from Philadelphia on the date named,
which reported the officers of the institution as saying that
the closing was due to unusual withdrawals.
Sunday night, Dec. 20, that they had asked the State to
take over the institution to protect the depositors. Associated Press advices from Cleveland on the date named,
rom which the foregoing is taken, went on to say:
The Standard is not associated with any other Cleveland bank and is not
a member of the Cleveland Clearing House Association or the Federal Reserve System. It is one of the smaller banks here, operating a business
estimated at less than 1.5% of the total of all city banks on deposits. All
county and city funds on deposit,about $4,000,000, are covered by security.
The closing brings to an end an experiment of 1920 when railroad unions
entered the Cleveland banking field by establishing the Brotherhood of
Locomotive Engineers' Co-operative National Bank, The late Warren S.
Stone, head of the brotherhood, became the bank's first President. Later
the name was changed to the Engineers National Bank, and in a reorganization in 1930 the present bank was formed with C. Sterling Smith as
President.
Two banks in the Philadelphia district on Dec. 18 placed
their affairs in the hands of the Pennsylvania Banking Department, according to an announcement by Dr. William D.
Gordon, State Secretary of Banking. The closed banks'
affiliated institutions, are the Lansdowne Bank & Trust Co.
at Lansdowne and Baltimore Avenues, and the Drexel Hill
Title & Trust Co.of Drexel Hill. The Philadelphia"Ledger"
In reporting the closings, quoted C.Russell Arnold,President
It is learned from the Cincinnati "Enquirer" of Dec. 17
of both banks in a statement on behalf of the directors of that announcement was made the previous day of the apthe Lansdowne Bank & Trust Co., as saying:
pointment of Morton J. Heldman as Executive Vice-Presi.
"Owing to persistent and continued withdrawals of deposits, our insti- dent of the People's Bank & Savings Co. of Cincinnati, Ohio,
tution has reached the point where we believe a further continuance of
business would be unfair to our remaining depositors, who have so loyally to take effect immediately. Mr. Heldman resigned as Vicestood by the institution. The Board of Directors has accordingly voted President of the Heldman Clothing Co. in order to accept
to place the institution in the hands of the Secretary of Banking of Penna." the position with the bank. The paper mentioned furtherThe following statement was issued by Mr. Arnold, it more said:
was said, concerning the Drexel Hill Title & Trust Co.:
In assuming his new duties, he will assist former State Senator Alfred M.
"By reason of the continued withdrawals of deposits and the closing
of the Lansdowne Bank & Trust Co., the Board of Directors of the Drexel
Hill Title & Trust Co., has, with great regret, resolved to place the business
of the company In the bands of the Banking Department of Pennsylvania."
The paper mentioned went on to say:
Cohen. President, who has borne the responsibilities of the office since the
bank was organized. The Peoples Bank yesterday (Dec. 16) declared the
regular quarterly dividend of 3% on capital stock, payable Jan. 9 to stockholders of record Dec. 31.
the New York "Times" on Dec.
Indianapolis advices to
22 stated that announcement was made on that day by
Luther F. Symonds, State Banking Commissioner for Indiana, of the closing of four Indiana State banks, namely
the Owensville State Bank, with $50,000 capital stock, $492,000 deposits and $624,000 reserves; the People's State Bank,
at Crown Point, with $60,000 capital stock; $850,000 deposits
and $1,016,000 reserves; the Old State Bank, at Oakland
City, with $350,000 capital stock, $850,000 deposits and $1,On Dec. 17 the Pennsylvania State Banking Department 016,000 reserves,and the Somerville
State Bank, with $59,000
took possession of the State Bank of Blingerstown, Pa.,
deposits and $89,000 resources.
on
Harrisburg
advices
from
according to Associated Press
the date named. The closed bank had deposits of $327,397
Landon C. Rose, President of the North Avenue State
and total resources of $394,205, the dispatch stated.
Bank of Chicago, Ill., died at his country home in La Porte,
A dispatch from Washington, Pa., to the Pittsburgh "Post Ind., on Dec. 20. The deceased banker, who was 59 years
Gazette" on Dec. 14 stated that checks for a 25% dividend of age, was born in La Porte. After graduating from Wabash
According to the statement of the State Banking Department announcing it had taken possession of the two banks, the Lansdowne Bank &
Trust Co. had total assets of $3,954,000 and deposits of $2,506,000. It
had capital of $375,000,,surplus of $375,000 and undivided profits of
$40377. The statement of the company as of March 27 1931 showed
total deposits of $4,674,000.
The State Banking Department's figures on the Drexel Hill Title &
Trust Co. give total assets of $938,000 and deposits of $570.000. Capital
was $125.000. surplus $90,000 and undivided profits $15,000. As of
• March 27 1931 the company had total deposits of $1,023,000.
DEC. 26 1931.]
FINANCIAL CHRONICLE
College in 1893 he entered Rose & Co., the private banking
Louse conducted by his family. Later he became President
of the old Colonial Trust & Savings Bank, and, after the
merger of that bank with the Central Trust Co. was a VicePresident of the latter institution. He became President of
the North Avenue State Bank in 1906.
As a further step in the program of simplification of
corporate structure and economical operation adopted when
the Guardian Detroit Union Group, Inc., Detroit, Mich.,
was founded in 1929, directors of the Guardian Detroit
Bank and the National Bank of Commerce of Detroit, at
meetings held Dec. 19, unanimously voted to recommend
to their respective stockholders that the two banks be consolidated under the name Guardian National Bank of
Commerce.
4273
closed by its directors at a meeting held the evening of
Dee. 16. The decision to close the institution was made
public in the following statement signed by B.S. Jerman and
E. B. Crow, President and Vice-President, respectively, of
the Bank:
By the authority and direction of the board of directors the doors of the
Commercial National Bank are closed pending a meeting of the stockholders. The directors and officers will call all the stockholders in session
for the purpose of considering plans for the re-opening and re-organization
of the bank. Depositors will also be invited to take part in perfecting plans
for the continuation of the bank so that the service it has rendered to Raleigh
and the surrounding country may be carried on.
During the 50 years of its useful career it has been the policy of the
Commercial National Bank to borrow money in the spring and summer to
enable its farmer clients to make their crops and to aid business men in the
summer season. Until the frustration of the price of cotton and tobacco
this fall the bank has always repaid these loans when they matured. This
year, owing to the depression, many of our customers have found it impossible to meet their obligations. Because of these frozen credits, it is
deemed wise, to notify the Comptroller of the Currency at Washington to
take charge of the bank until such time as measures may be taken for reopening. This decision is made in order to protect the depositors as fully
as possible.
A dispatch by the Associated Press from Albion, Mich.,
on Dec. 22, stated that the Albion State Bank at Albion
established in 1858, had failed to open on that day. The inAccording to its last statement of condition, Sept. 29, the
stitution was capitalized at $50,000 and had deposits aggre- Commercial National Bank had a capital of 8600,000,surplus
gating $523,876. "Frozen assets" and heavy withdrawals and undivided profits of 8136,164, and deposits of $4,286,942.
were given by the officials as reasons for the closing, the adThat the directors of the First National Bank of Warsaw,
vices stated.
N. C., had posted a notice on the doors of the institution
Closing of the American St- ate Savings Bank of Lansing, stating that it would not open
for business the next day
Mich., and its three branches on Dec. 22 was reported in (Dec. 15) pending action by the Comptroller of the
Curadvices by the Associated Press from that city on the date rency, was reported in a dispatch from Warsaw on Dec. 14,
named, which added:
appearing in the Raleigh "News & Observer" of Dec. 15.
Officials of the institution said it was closed as the result of withdrawals
The advices continuing said:
which had been under way for some time.
The bank, in its last statement, reported deposits of approximately $8,000,000, capital of $750,000 and surplus of $400,000.
Effective Oct. 12, the Security National Bank of Grand
Rapids, Mich., with capital of $500,000, was placed in voluntary liquidation. The institution was absorbed by the
Home State Bank for Savings of Grand Rapids, which subsequently changed its title to the American Home Security
Bank.
The Ithaca National Bank of Ithaca, Mich., failed to
open on Dec. 11, according to the Michigan "Investor" of
Dec. 12, which stated that heavy bond depreciation and a
slight decrease in deposits were given as the reasons for
closing.
Two of the three banks in B- enton Harbor,Mich.,failed to
open on Dec. 18, according to advices from that place by the
Associated Press. The institutions are The American National Bank & Trust Co. and the Benton Harbor State Bank.
It was announced the banks were closed for reorganization.
The dispatch went on to say:
The American National Bank & Trust's last statement showed a capitalization of $200,000 and total deposits of $2,003,769. The Benton
Harbor State Bank Is capitalized at $100,000 and has total deposits of
$1,008,044.
The First National Bank of Conrad, Iowa, capitalized at
$25,000, went into voluntary liquidation on Nov. 5 1931.
It was taken over by the First State Bank of Conrad.
The action was prompted when the Federal Reserve Bank refused to renew paper which it now carries for the Warsaw institution and demanded
that the daily letters be paid in cash over the counter
The Warsaw bank owes $12,519.02, against which they hold bills receivable amounting to $59,000. The capital stock Is 850,000 and the bank has
other assets which will assure depositors of 100 cents on the dollar.
Dr. J. M. Williams Is President.
The inability of farmers in this section to meet their obligations due to
the present economic depression was mainly responsible for the inability
of the First National of Warsaw to meet demands made upon it.
Advices from Richwood, West Va., Dec. 18 to the Pittsburgh "Post Gazette" stated that the Richwood Banking &
Trust Co., closed Oct. 2 last, would reopen for business in
its old quarters the next day (Dec. 19) under an agreement
by depositors to defer checking withdrawals for certain
periods. Deposits will receive 3% interest during the time
they are left in the bank. The agreement has been officially
approved by L. R. Charter Jr., State Commissioner of
Banking for West Virginia, it was stated.
The closing of this bank with deposits as of June 30 1931
was noted in our Oct. 10 issue, page 2381.
The Bank of Acadia at Crowley, La., was reported closed
in a press dispatch from that place on Dec. 16, printed in
the New Orleans "Times Picayune," which said:
The Bank of Acadia failed to open its doors for business to-day and bank
officials blamed the situation on "unwarranted withdrawals."
Preliminary plans for reorganizing the bank and reopening it were under
way and definite announcement was expected to be made soon by J. S. Brock,
State Bank Commissioner, who was checking the books.
Jack Frankel, President, said the bank owned more than enough rice
alone to meet all bills payable.
-Davenport, Iowa, on Dec. 5
United Press advices from
stated that under the inspiration of E. P. Adler, a newspaper
The Bank of Indianola, Indianola, Miss., capitalized at
publisher and other public-spirited citizens, the American $100,000, was closed by its
directors on Dec. 16, according to
Savings Bank & Trust Co. of Davenport plans to re-open
a dispatch from that place printed in the New Orleans
on Jan. 16 as the Davenport Trust & Savings Bank. The "Times-Picayune."
dispatch continuing said:
The concern closed more than two months ago, with repercussions in
Eastern Iowa and Western Illinois. Weakened confidence, however, was
wiped out when E. P. Adler. publisher and stockholder in the institution
started a campaign to re-open the bank.
That plans to consolidate
-the People's State Bank of
Prairie du Sac, Wis., and the Prairie du Sac Bank of that
place, were approved by the respective stockholders of the
institutions on Dec. 8, according to the "Commercial West"
of Dec. 19. The consolidated bank will continue the name
of the Prairie du Sac Bank and will open for business Jan. 1,
it was stated.
Closing of the Bank of Yazoo City, Miss., was indicated
in the following dispatch by the Associated Press from that
place on Dec. 10:
The Bank of Yazoo City to-day failed to open Its doors for business and
the institution was turned over to the State Banking Department in the
hope of having the Delta National Bank here take over its affairs for the
benefit of depositors, said J. S. Love, State Superintendent of Banks.
A notice posted on the doors after a directors' meeting held last night
stated that "directors of this bank deemed it advisable to close to protect
depositors of the bank. We believe the bank to be solvent."
The bank was to have mailed out Christmas savings checks to-day.
Payment of a first dividend amounting to $150,000 to
depositors of the Commercial National Bank of Hattiesburg,
The closing of two small North Carolina banks was re- Miss., which closed its doors the early part of last
June,
ported in the following Associated Press advices from was begun on Dec. 21, according to a press dispatch from
Raleigh, N. C., on Dec. 18:
that city, printed in the "Memphis Appeal." The advices
Gurney P. Hood, State Bank Commisioner, to-day announced that the went on to say in part:
Bank of Wake at Wake Forest, and the Bank of Grover, at Grover, did not
open for business to-day. Deposits in both banks aggregated about $180,000.
From the Raleigh "News & Observer" of Dec. 17, It is
learned that the Commercial National Bank of Raleigh,
N. C., the only National bank in that city, was ordered
Some 2,600 depositors are eligible to receive dividend checks which
range from three cents to more than $4,000. Another dividend payment
will be made soon, Selig (Mr. Selig, the receiver) stated, although
the
amount could not be estimated at this time. The receiver also
stated
that the initial payment was being made out of the bank still remaining
intact.
dries+11•11
4274
FINANCIAL CHRONICLE
[VoL. 133.
Sidney Maestro was appointed President of the Mississippi stated that the reopening was definitely announced on that
Valley Trust Co. of St. Louis, Mo., on Dee. 14, to succeed day by A. J. Lewis, liquidating agent. The dispatch added:
the late J. Sheppard Smith. On the same day, Mr. Maestro
He said the State Banking Department had approved the reopening and
resigned the Presidency of the Mercantile-Commerce Co., a plan of operation which officers and directors had worked on since the
institution
closed Oct. 6.
which is affiliated with the Mercantile-Commerce Bank &
The same officers, it was learned, will head the institution. The capital
Trust Co. of St. Louis, to accept his new office. The fol- stock will remain at $300,000.
lowing concerning the career of Mr. Maestro, who assumed
The closing of the institution on Oct. 6 last was reported in
his new duties Dec. 15, was printed in the St. Louis "Globe- ourlisue
of Oct. 10, page 2381.
Democrat" of that date:
Mr. Maestre, who is 40 years old, is one of the youngest men to be elected
The First National Bank of Ord, Neb., capitalized all
to the Presidency of a major banking institution in St. Louis. In addition
to being active in banking affairs of the city he has been prominently $100,000, was placed in voluntary liquidation on Dee. 8.
identified with many civic and charitable organizations.
Mr. Maestre's advance to a leading postion in banking affairs in St.
Louis has been rapid. He was graduated from the University of Missouri
In 1913 and immediately entered the investment banking business as a
bond salesman and shortly afterwards joined the Mercantile Trust Co.
as Assistant Manager.
Later he went to Kansas City to become a partner in Stern Brothers &
Co. He returned to St. Louis in 1919 and became Manager of the bond
department of the Mercantile Trust Co. Five years later he became VicePresident of the company, and when the Mercantile Trust Co. was merged
with the National Bank of Commerce to form the present MercantileCommerce Bank & Trust Co., Mr. Maestro was named as President of the
investment unit, the Mercantile-Commerce Co.
The First National Bank in St. Louis, St. Louis, Mo.,
has purchased the assets and assumed the deposit liabilities
of the Franklin-American Trust Co. of that city. In announcing the consolidation of the institutions, which became
effective Dec. 22, Walter W. Smith, President of the First
National Bank in St. Louis, issued the following statement,
as printed in the St. Louis "Globe-Democrat" of that date:
"The First National Bank, in acquiring the business of the FranklinAmerican Trust Co., has secured more than 50,000 customers representing
many of St. Louis's largest corporations and individuals in every walk of
life. The capital, surplus and undivided profits of the Franklin-American
Trust Co. amount to more than $4,000,000. The deposits are in excess
of $20,000,000, which added to the First National Bank resources, gives
the city a bank of over $200,000,000 resources.
"The Franklin-American has been highly regarded in banking circles.
The agreement under which the First National Bank assumes the deposits
of the Franklin-American Trust Co. is designed to preserve for the shareholders of the Franklin-American the maximum equity represented by the
trust company's capital, surplus and undivided profits.
"The customers of the Franklin-American Trust Co. will be served by
the former officers and employees of the Franklin-American at the banking
rooms of the First National Bank, effective to-day (Dec. 22). For the
present the safe deposit customers and the clientele of'the Franklin-American
Co. and their trust department will continue to be served at the FranklinAmerican Banking location at Seventh and Locust Streets."
The institution was succeeded by the First National Bank
in Ord.
Two Seattle, Wash., bank- s, viz., the First National
capitalized at $8,000,000, and the Metropolitan National
Bank, with capital of $500,000, were consolidated on Dec. 9
under the title of the First National Bank of Seattle, with
capital of $8,000,000 and surplus of $1,600,000. The enlarged institution has two branches in the city of Seattle,
both of which were former branches of the First Nationa
Bank.
The American National Ba-nk of Aberdeen, Wash., with
capital of $400,000, was placed in voluntary liquidation
Dec. 3 last. This institution was taken over by the First
National Bank in Aberdeen.
The First National Bank of Port Townsend, Wash.,
capitalized at $75,000, was placed in voluntary liquidation
on Dec. 2. The institution was absorbed by the American
National Bank of Port Townsend, which subsequently,
Dec. 7, changed it title to the First American National
Bank of Port Townsend.
According to Associated Press advices from Santa Monica,
Calif., on Dee. 18, the Marine State Bank of that place, with
deposits of $750,000, was closed by order of the California
State Banking Department.
Closing of the San Bernardino Valley Bank in San Bernardino, Calif., is indicated in the following advices from
San Francisco on Dec. 23 to the "Wall Street Journal":
James L. Ford Jr., former President of the FranklinAmerican Trust Co., was also reported in the paper mentioned as saying:
San Bernardino Valley Bank, in San Bernardino, has been closed by
resolution of the bank's directors, and has been taken over by the California Banking Department. Announcement was made by Edward
Rainey. Superintendent of Banks.
"Owing to the public unrest which followed the suicide of one of our
leading officers, which was due to personal reasons having no connection
with our trust company, the officers and directors of our company decided
to fully protect the deposits of our institution by merging with the First
National Bank.
"We have regarded our obligations toward depositors as our most sacred
obligations, not only to them but to our city. We have placed them with
the largest bank in our city, where the fullest protection is secured.
"We urge each and every one of our customers to continue with them
thesame pleasant relationship which has existed with us. They are equipped
to serve their every need. Our bank was thoroughly sound and solvent
and always has been. We have made it more so by our consolidation with
the First National Bank."
a substantial interest in the First National Bank of Beverly
Hills, Cal., has been purchased by E. J. Nolan, who has been
actively identified with banking in Los Angeles for the last
twenty years. Mr. Nolan was appointed Chairman of the
Board of the Institution on Dec. 17. The paper mentioned
went on to say:
In addition to Mr. Smith, the principal officers of the
First National Bank in St. Louis, are as follows: F.0. Watts,
Chairman of the Board; F. E. Gunter, Vice-Chairman;
Richard S. Hawes, W. T. Ravenscroft, F. V. Dubrouillet,
Joseph S. Calfee, E. C. Stuart, M. E. Holderness, W. F.
Gephart, Bert H. Lang, W. C. Connett, M. R. Sturtevant,
E. Barklage, G. Hobart Chase,E. G. Coffman, G. Riesmeyer
Jr., Edward Horman, F. C. Hunt, R. Palmer McElroy,
Lawson M. Watts, J. N. Sommer, W. A. Gordon and Jacob
Berger, Vice-Presidents; Charles L. Allen, Cashier; William
G. Tompkins, Auditor.
The St. Louis Union Trust Co. and the First National Co.
are affiliates of the First National Bank in St. Louis.
Two Carthage, Mo., banks were merged on Dec. 21, the
Bank of Carthage taking over the assets of the Union Trust
Co., according to an Associated Press dispatch from Carthage on Dec. 21 The consolidation gives the Bank of
Carthage, the oldest institution in that section of the State,
total resources of $1,360,000 and deposits of $1,102,033.
The institution is capitalized at $150,000, with surplus and
undivided profits of $81,853. W. F. Carter heads the
enlarged bank while John Marsh is Cashier. J. D. Harris
was President of the Union Trust Co. andjiWilliam Seed,
Secretary and Treasurer, the dispatch said.
From the Los Angeles "Time- s" of Dec. 18 it is learned that
The First National Bank of Beverly Hills is an independent bank founded
in 1910, and has capital, surplus and reserves of more than $1,000,000.
Deposits total more than $6,000,000.
Mr. Nolan plans to take an active part in the affairs of the bank, whidi
will continue under the presidency of Richard L. Hargreaves. The Board of
Directors will remain unchanged, with the exception of the addition of Mr.
Nolan, and the personnel of the bank will continue as before.
At one time engaged in the practice of law, Mr. Nolan first entered
banking as Vice-President and General Counsel of the Hellman Commercial
Trust & Savings Bank, later became President of this bank, then President
of the Merchants' National Trust & Savings, and finally Chairman of the
Bank of America N. T. & S. A., a post he recently resigned.
The annual report of the Canadian Bank of Commerce
(head office Toronto) for the fiscal year ended Nov. 30 1931
has just recently been issued and makes a favorable showing
despite the widespread business depression in Canada and
the world at large which has prevailed during the period
under review, Though the bank reports lower earnings for
Its fiscal year ended Nov. 30 1931, says the Montreal
"Gazette" of Dec. 19, "this readily understandable fact is
counterbalanced by the increased liquidity achieved by the
institution at the close of a year of extremely difficult conditions." The statement shows net profits, after making full
provision for all bad and doubtful debts, of $4,774,923,
which when added to $516,351, the balance to credit of
profit and loss brought forward from the preceding fiscal
year, made $5,291,275 available for distribution. This amount
was allocated as follows: $3,600,000 to pay four quarterly
dividends at the rate of 12% per annum; $600,000 to pay
That the Commonwealth Bank & Trust Co. of San Antonio, Dominion and Provincial taxes and tax an bank-note circulaTex., would reopen for business on Dec. 23, was Indicated in tion; $50,000 for donations and subscriptions; $255,592 transAssociated Press advices from San Antonio on Dec. 19, which ferred to pension fund, and $250,000 written off bank prom-
DEC. 26 1931.]
FINANCIAL CHRONICLE
4275
to credit of profit and loss brought forward from the preceding fiscal year, made the sum of £457,396 available for distribution. Out of this sum, the report shows, there was
applied in July in payment of the semi-annual dividend on
the "A" and "B" shares at the rate of 16% and 10% per
annum, respectively, £127,875 (under deduction of income
tax £37,125), leaving a balance of £329,521, which the
directors recommended be appropriated as follows: £123,750
to pay the second half-yearly dividend on the "A" and "B"
shares at the rate of 16% and 10% per annum, respectively
of income tax £41,250); £50,000 to be
Charles Ernest Neill, Vice-President and Managing Di- (under deduction
fund; £30,000 to be credited to officers'
contingency
to
added
rector of the Royal Bank of Canada, and one of the Dopension fund, and £50,000 to be applied in reduction of the
Hosthe
at
Royal
Victoria
died
bankers,
foremost
minion's
the bank's properties, leaving a balance of £75,770
pital in Montreal after a prolonged illness. Mr. Neill, cost of
forward to the next year's profit and loss
carried
be
to
who was 58 years old, passed his entire business career with
resources of the institution on Oct. 31 1931
Total
account.
in
He
born
Fredericton,
was
Canada.
of
the Royal Bank
while total deposits and credit balances
£41,361,839,
were
N.B.,and after being graduated from the Collegiate School of
The subscribed capital of the instituthat city, entered the service of the Royal Bank in Frederic- were £32,112,042.
which £2,250,000 is paid up, and its
of
£7,500,000,
is
tion
C.,
B.
ton. He was appointed Manager of the Vancouver,
Besides the head office in
£2,850,000.
is
fund
reserve
branch in 1900 and later in the same year was named supermaintains two London offices,
institution
the
Edinburgh,
was
Neill
In
Mr.
1903
branches.
British
Columbia
visor of
s in Scotland, and numerous
transferred to Montreal as the bank's Chief Inspector, 260 branches and sub-office
the United Kingdom. The
in
elsewhere
correspondents
becoming Assistant General Manager in 1907, General
is Governor, and Alexander
K.T.,
Kellie,
and
Mar
of
Earl
Managing
in
1927, and
Manager in 1916, Vice-President
Manager.
General
Robb,
Director in 1929. Among other activities, Mr. Neill was a
director of a number of Canadian enterprises, including the
following:
THE WEEK ON THE NEW YORK STOCK EXCHANGE.
Montreal Trust Co., Sun Life Assurance Co., Northern
The advent of the holiday week, together with a reactionAssurance Co., Dominion Bridge Co., Shawinigan Water
price tendency caused a slowing up of speculative activity
ary
& Power Co., Crown Life Assurance Co., and Beauharnois
market the present week. Trading
Power Co. He was also a Governor of McGill University, in the New York stock
and while there have been a
volume
smaller
in
been
Montreal, and in 1926 and 1927 was President of the Can- has
adian Bankers' Association.
number of special stocks that have reached new tops, most
of the gains were not maintained and the trend has generally
According to cable advices received from London, the been toward lower levels. Railroad shares have shown
Board of Directors of Barclays Bank (Dominion Colonial occasional bursts of strength and so have industrial shares
and Overseas) with head office in London, have recom- and public utilities, but the gains have not been especially
mended a final dividend for the year ended Sept. 30 last noteworthy. The weekly statement of the Federal Reserve
at the rate of 8% per annum on the preference shares and Bank of New York issued after the close of business on Thurs5% per annum on the "A" and "B" shares. With the day showed a further decrease of 851,000,000 in brokers'loans
interim dividends declared in June last this makes a full in this district. Call money renewed at 3% on Monday and
distribution for the year at 8% per annum on the preference continued unchanged at that rate during the rest of the week.
stocks and 49% per annum on the ordinary shares. These Irregularity was the outstanding characteristic of the stock
rates are identical with those paid for the year ended Sept. market during the abbreviated session on Saturday, and
30 1930.
while the opening hour gave promise of a continuation of the
liquidation in such stocks as J. I.
We are in receipt of the annual report of the National Bank preceding day's recovery,
Auburn Auto quickly checked
and
Tel.
&
Tel.
Am.
Case,
of Scotland, Ltd. (head office Edinburgh,) covering the
stronger, parfiscal year ended Oct. 31 1931. The report, which was pre- the upward movement. Railroad shares were
advances
substantial
and
stocks,
grade
high
the
ticularly
their
at
meeting
annual general
sented to the shareholders
&
Delaware
Atchison,
as
issues
such
by
recorded
were
on Dec. 17, shows net profits, after deducting expenses of
Norfolk & Western was
management at head office, London office, and 180 branches Hudson and New York Central.
4 points to 118. The
and sub-offices, allowing for rebate, interest, &c., and after especially strong and forged ahead
more than 500,000 shares
making provision for all bad and doubtful debts not other- turnover was again heavy with
Aside from the rails
wise provided for, of £270,434. To this amount was added changing hands during the first hour.
advance included
the
of
side
the
on
changes
principal
the
£74,294, representing balance brought forward from the
Tel. & Tel., 2 points
preceding fiscal year, making together £344,728 available United Fruit, 3% points to 25; Pacific
118; International Silver,
for distribution. From this sum the following appropriations to 98; Peoples Gas, 2 points to
Business Machine, 23
were made: £132,000 to pay a dividend at the rate of 16% 53% points to 55, International
points to 119; Eastman
8
Edison,
Detroit
1133<;
to
points
of
(this
being exclusive of income tax
per annum
£44,000)
% points
Johnson, 23
Endicottand
83
to
points
Kodak,
23/i
payable in 1932 in equal parts on Jan. 12 and July 12 1932;
tone was heavy and most of the
£100,000 credited to contingent fund; £20,000 applied in to 25%. At the close the
taking.
reduction of cost of heritable property and of alterations and leaders were off on profit
Stocks failed to extend their gains on Monday as the
£20,000 to officers' pension fund,leaving a balance of £72,728
downward movement.
to be carried forward to the ensuing year's profit and loss stock market resumed its gradual
range. though the
narrow
a
within
were
fluctuations
Price
account. The bank's total resources are shown in the stategroup in the general list.
ment as £35,763,705, and deposit receipts, deposit accounts, decline included practically every
shortly after mid-session
current accounts,and other creditor balances, at £29,077,192. Considerable selling was apparent
declines, the recessions
striking
few
were
there
The paid-up capital of the institution is £1,100,000 and its and while
group. The outreserve fund £1,550,000, exclusive of the £132,000 set aside were most pronounced in the industrial
decline and inthe
of
side
the
on
were
changes
standing
to meet the dividend requirement, and £72,727 carried for23/i points to
ward. Recently the bank opened a branch in the West End cluded among others, Allied Chemical & Dye
Coca Cola 2
to
11%,
points
13
Anaconda
Copper
68%,
being
at
situated
18-20 Regent
of London, the new office
Street, Picadilly, S. W. 1. The Most Hon. the Marquis of points to 109, Delaware & Hudson 23' points to 75, Detroit
Zetland is Governor; Sir Hector Munro of Foulis, Bart., Edison 4 points to 113, Eastman Kodak 1 point to 82,
Deputy-Governor, and John Taylor Leggat General Manager Woolworth & Co. 1 point to 39, United States Steel 2%
2. The
points to 393' and Union Pacific 23' points to 563/
of the institution.
market continued easy until the close, trading was quiet
The annual statement of the Commercial Bank of Scot- and most of the market leaders were off on the day.
The market was a trifle stronger on Tuesday, due in a
land, Ltd.(head office Edinburgh), for the fiscal year ended
Oct. 31 1931, as presented to the shareholders at their measure to a steady bond market, and while prices were
annual general meeting on Dec. 17, has just been received. slightly higher in some of the more active speculative stocks,
After providing for rebate of discount and interest and for there was little in the way of noteworthy change in any of
all bad and doubtful debts, net profits for the 12 months the groups. Rails relapsed into dullness and oils were
were £385,737, which, when added to £71,659, the balance lower, but there was a very modest improvement in the
Ises, leaving a balance of $535,683 to be carried forward to
the ensuing year's profit and loss account. Total assets are
shown at $640,785,420, of which $329,151,947 are liquid assets, or 57% of the bank's liabilities to the public. Total
deposits are given at $499,087,945, of which $376,910,287 are
interest bearing deposits. The bank's paid up capital is
$30,000,000 and its reserve fund a like amount. John Aird is
President of the Canadian Bank of Commerce and S. H.
Logan, General Manager.
4276
FINANCIAL CHRONICLE
[VoL. 133.
copper shares. The top prices were established around the to-day at 37%. Amer.
Light & Traction, corn. was off
noon hour and from that time on most of the active issues from 23% to 20%.
Commonwealth-Edison Co. after early
were inclined to ease off. Railroad shares showed moderate Improvement from 114%
to 122 eased off to 117. Duke
gains, but there was nothing especially noteworthy in the Power from 69% fell
to 65 and recovered finally to 67%.
recorded
gains
at the close. Among the changes on the Elec. Bond & Share,
corn. receded from 12% to 10 and
side"of the advance were Allied Chemical & Dye, 1% points closed to-day at 10%.
The $6 preferred moved up at first
to 70%; Amer. Can, 1% points to 64; Atchison, 2 points to from 56 to 59%, then
reacted to 52. The $5 preferred lost
93/i
88%; Auburn Auto,
points to 141; Homestake Mining almost 6 points to 52. Northern States Power,
corn. sold
Co., 6 points to 130; International Business Machine, 3% down from 75% to
70%. Quite a number of changes
points to 110; National Lead, 4 points to 85; Peoples Gas, appear in the oil list. Humble
Oil & Refg. weakened from
2%(points to 1193/2; United States Steel, 1% points to 46% to 45%. Northern Pipe Line
from 31%, ex-div. sold
40%; Amer. Tel. & Tel., 2% points to 118%, and Eastman down to 27%. Standard Oil (Indiana) moved down
from
Kodak, 1% points to 83%. The market was steady at the 16% to 13% and recovered finally to
143
%. Standard Oil
close, the trading quiet and the leaders close to the best for (Ky.) from 14%, dropped to 12% and
sold finally at 13.
the day.
Standard Oil (Nebraska) from 21 fell to 16 and recovered to
The market turned reactionary on Wednesday and a 17. Standard Oil (Ohio), corn. declined
from 28% to 23
number of substantial losses were recorded before the close. and closed to-day at 24%. Gulf
Oil moved down from
Steel stocks and railroad issues were particularly hard hit 29% to 26%. Industrial and
miscellaneous issues show
in the downward swoop, Bethlehem Steel dropping 2 points few changes of note. Aluminum
Co., com. dropped from
to a new low, while United States Steel fell off 2% points 64 to 53 and closed to-day at 54.
Lackawanna Securities
to 37%. The turnover was slightly higher than the pre- weakened from 26 to 24%. Mead,
Johnson & Co., corn.
ceding day, the total sales reaching 1,560,487 shares. lost 3 points to 47 and National Bond
& Share 2 points to 19.
Prominent among the day's recessions were American Can, Singer Mfg. fell from 135 to 125.
23( points to 61%; Air Reduction, 2% points to 51; Allied
A complete record of Curb Exchange transactions for the
Chemical & Dye, 2% points to 679/8; Amer. Tel. & Tel., week will be found on page
4311.
3% Points to 115; Atchison, 4% points to 84%; Auburn
DAILY TRANSACTIONS AT THE NEW YORK CURB EXCHANGE.
Auto, 9% points to 131%; Baltimore & Ohio, 2% points
3 points to 40%; Worthington
to 16%; J. I. Case Co., 3%
Stocks
Bonds (Pat Value).
(Number
Pump,25
% points to 17%; Westinghouse,2% points to 26%;
Week Ended
of
Foreign
Foreign
Dec. 24 1931
Shares).
Domestic: Government. Corporate.
Union Pacific, 6 points to 64; Southern Pacific, 4% points
Total.
to 28%; Norfolk & Western, 5 points to 115; Eastman Saturday
322,843 82,473.000
872.000
$84,000 82.629,000
Monday
349,867 4.213.000
86.000
135.000 4,434,000
Kodak, 332 points to 80%, and New York Central, 2% Tuesday
284,483 2,670.000
101.000
95,000 2,886,000
Wednesday
314,212 3,103.000
127,000
93.000 3,323,000
points to 28%. The market was easy at the close with Thursday
309,828 2,054,000
147,000
83,000 2,284.000
Friday
leaders down from 2 to 5 points.
HOLIDAY
Stocks moved within an extremely narrow range on ThursTotal
1.581,233 814,513.000
$533,000
8490,000 $15,536,000
day and little progress was made either way. There were
Sales at
Week Ended Dec. 24.
Jan. 1 to Dec. 24.
occasional exceptions, however, notably American Express,
New York Curb
Exchange.
1931.
1930.
1931.
1930.
which moved up 2% points to 100, General Refractories,
of shares_
1.581,233
2,342,800
which climbed 2 points to 14% and Homestake Mining Stocks-No,
108,046,051
248.953.293
Bonds.
which gained 5 points to 128. Railroad shares were active Domestic
$14,513,000 813.978,000
$892,847,000
8836,813.000
Foreign Government_
533,000
922,000
31,851,000
38,382.000
during most of the day and some of the more popular issues Foreign corporate
490,000
736.000
39,661,000
38.912,000
closed with fractional gains. As the day advanced, the
Total
$15,536,000 $15,636,000
8964,359,000
8914.107,000
Christmas spirit became more pronounced and the market
developed into a typical pre-holiday affair and speculative
activities gradually simmered down. The entire turnover
COURSE OF BANK CLEARINGS.
for the day aggregating slightly over 1,106,000 shares.
Bank clearings this week will again show a decrease as
The New York Stock Exchange, the Curb Market and all compared with a year ago. Preliminary figures compiled
other exchanges will be closed on Friday and Saturday of by us, based upon telegraphic advices from the chief cities
this week, making a three-day Christmas holiday.
of the country, indicate that for the week ended to-day
(Saturday, Dec. 26), bank exchanges for all the cities of
TRANSACTIONS AT THE NEW YORK STOCK EXCHANGE
DAILY. WEEKLY AND YEARLY.
the United States from which it is possible to obtain weekly
returns
will be 27.1% below those for the corresponding
RaGroad
State.
Stocks,
United
Total
Number of and Mind:. Municipal ce
Week Ended
week last year. Our preliminary total stands at $5,421,States
Bond
Shares.
Bonds.
Dec. 24 1931
Forts Bonds.
Bonds.
Bales.
816,173, against $7,433,855,441 for the same week in 1930.
Saturday
1,628,286 $5,913.000 82.327,000 81,630.000 $9.870,000 At this
center there is a loss for the five days ended Friday
8,727,000
3,407.000
1,924.996
Monday
1.202.500 13,336.500
7.004.500
Tuesday
3,494,000
1.397.038
1.475.500 11,974.000 of 25.4%. Our comparative summary for the week follows:
7,776.000
Wednesday.
3,518,000
1,560.487
1.827.500 13,121,500
Thursday
Friday
Tntnt
2.620,000
HOLIDAY
7 014 010 335.118.500 $15.366.000
Week Ended Dec. 24.
Sales at
New York Stock
Exchange.
Stocks-No. of sharesBonds.
Government bonds._.
Statedr foreign bonds_
Railroad & misc. bonds
Total bonds
5,698,000
1,106,103
1.317,000
9,635,000
$7.452.500 357.937.000
Jan. 1 to Dec. 24.
1931.
1930.
7.614.910
9,058,288
722,802,469
729,415,1364
$7.452.500
15.366.000
35.118,500
$2,197.000
11,181,000
29.453.500
8282,757,450
891,924.100
1,812.383,400
$112,662,400
708,089,900
1.893.896.700
1931.
1930.
$57,937,000 $42,831,500 $2.987.064,950 $2,714,649,000
DAILY TRANSACTIONS AT THE BOSTON, PHILADELPHIA AND
BALTIMORE EXCHANGES.
Boston.
Week Ended
Dec.24 1931.
Saturday
Monday
Tuesday
Wednesday
Thursday
Friday
Total
Philadelphia.
Baltimore.
Shares. Band Sales. Shares. Bond Sales. Shares. Bond Rates.
85,000
32,830
37.000
35.889
22,000
37.608
6,000
19.629
2.000
7,219
HOLI DAY
$12,000
37.445
44,520
21,000
34.765
29,100
a31,624
15.000
7.300
HOLI DAY
955
1.561
623
2.991
84,600
2,000
1.600
4,000
Tani DAY
877.100
8,198
$14,200
Prey. week revised 289.157 $145,500 393,753 $165.100
a In addition, sales of warrants were: Wednesday, 10.
10.127
$15,200
133,175
$72,000
155,654
THE CURB EXCHANGE.
Pre-holiday dullness characterized trading on the Curb
Exchange this week and while prices drifted to lower levels,
changes on the whole were small. In the utility group Amer.
Gas & Elec., cora, declined from 40% to 36% and closed
Clearings-Returns by Telegraph.
Week Ended Dec. 26.
19311
1930.
Per
Cent.
New York
Chicago
Philadelphia
Boston
Kansas City
St. Louis
San Francisco
Los Angeles
Pittsburgh
Detroit
Cleveland
Baltimore
New Orleans
$2,823.733.941 $3,784,000,000
191.481,342
305.518,421
190.000.000
333,000,000
193.000.000
374,000,000
53.786,129
78.589,269
50,800.000
82.600,000
75.000,000
106,786,000
Will no longer r eport clearings.
70,605.441
132.060.203
86,854,058
100,204,695
54,459,289
79,288,577
39.659,400
54,959.396
24,017,639
36.166,799
-46.5
-33.3
-31.3
-27.2
-33.6
Twelve cities, four days
Other cities, four days
53,842.397.239
675,782.905
85,467,173,360
661.075,495
-29.7
+2.2
Total all cities, four days
All cities, one day
$4,518,180,144
903.638,029
86,128.248.855
1.305.606.586
-26.3
-30.7
Total all cities for week
55.421.816.173
87.433.855.441
-27.1
-25.4
-37.3
-40.2
-48.4
-31.5
-38.5
-29.8
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. 19.
For that week there is a decrease of 28.5%, the aggregate of
clearings for the whole country being $7,651,050,827, against
$10,694,680,178 in the same week of 1930. Outside of this
city there is a decrease of 30.5%, the bank clearings at this
4277
FINANCIAL CHRONICLE
Dix. 26 1931.1
center recording a loss of 27.4%. We group the cities now
according to the Federal Reserve Districts in which they
are located, and from this it appears that in the New York
Reserve District, including this city, there is a loss of 27.3%,
in the Boston Reserve District of 29.3% and in the Philadelphia Reserve District of 32.0%. The Cleveland Reserve
District suffers a contraction of 39.1%, the Richmond Reserve District of 21.6% and the Atlanta Reserve District
of 24.7%. In the Chicago Reserve District the totals are
smaller by 35.5%, in the St. Louis Reserve District by
26.7% and in the Minneapolis Reserve District of 20.3%.
In the Kansas City Reserve District the decrease is 31.2%,
in the Dallas Reserve District 14.4% and in the San Francisco Reserve District 27.4%.
In the following we furnish a summary of Federal Reserve
districts:
Week Ended Dec. 19.
Clearings at1931.
Inc. or
Dee.
1930.
$
Seventh Feder al Reserve D Istrict-Chi cago-221,247 --17.4
182,823
Mich.-Adrian_ _
706.817 +30.7
924,181
Ann Arbor--109,442.790 167,886.363 -34.6
Detroit
5.195.401 -30.3
3.619,484
Grand Rapids_
2.709.381
2,593,280
Lansing
3.493,374
1.588,900
Ind.-Ft. Wayne
18.464,000 --21.7
14,440,000
Indianapolis_ _ _
2,015,813 --24.0
1,511.968
South Bend_ _ _
5.224.356 --1I.6
4,620,001
Terre Haute_ _ _
25.737.093 --22.3
19,889,206
Wis.-Milwaukee
2.684,394 --68.5
845,394
Iowa-Ced. Rap_
7.658.382 --24.7
5.768,590
Des Moines_
4,225.059 --24.6
3,184,122
Sioux City...1,178,968 --58.3
492,053
Waterloo
1,608,226 --22.5
1,245,940
Ill.-Bloomington
308.354,226 494,237.196 --37.6
Chicago
1,147.278 --43.5
647.943
Decatur
3,991.297 --22.9
3,076,913
Peoria
2,807,978 --57.3
1,199,069
Rockford
2,502,834
2,268,296
Springfield.. _ _ _
SUMMARY OF BANK CLEARINGS.
Total(20 cities)
Week End. Dec. 19 1931.
1931.
1930.
Inc.or
Dec.
1929.
1928.
Federal Reserve Dist.
1st Boston__ _ _12 cities
2nd New York_12 "
3rd Philadelphial0 "
4th Cleveland__ 8 "
5th Richmond.. 6 "
6th Atlanta____11 "
7th Chicago _ -20 "
8th 88. Lou1s-- 7 "
9th Minneapolis 7 "
10th KansaaCity 10 "
11th Dallas
5 "
1285 San Fran 14 "
$
$
$
$
%
359,339,131
508,077,787 -29.3
537,181,542
673,631,061
6285,358,241 7,268,555.439 -27.3 7,753,035,192 9,118,322,924
352,524.069
612052,466 -320
733,463,309
731,736,456
274,541,157
451,091,189 -39.1
443,438,375
492,426,877
139,479,015
176,631.946 -21.6
197,978,994
199.954.623
116.815,347
153,924,67 -24.7
195,839,035
211,874,478
485,885,179
753,695,45 -35.6
969,082,330 1,122,746,406
130,4684997
178,019,658 -28.7
248.875,965
216,967,129
91.645,625
115,058,71 -20.3
135,823,880
148,300,546
123,966,928
180,085,980 -31.2
216,718,225
210,410,311
52,448,059
96.498,908
61,285,798 -14.4
95,091,794
239,681,079
330,201,064 -27.4
364,808,391
399,606,347
Total
122 cdtlee
Outside N. Y. CRY
7,651,050,827 10,694,680,178 -28.5 11,859,408,196 13,654,383,901
2,613,031,553 3,616,377,766 -30.5 4,298,703,803 4,733,648,741
Canada
32 Cities
293.963.498
373.057.272 -21.2
505.977.435
494.839.146
We now add our detailed statement, showing last week's
figures for each city separately, for the four years:
Week Ended Dec. 19.
Clearings at-1931.
1930.
Inc. or
Dec.
First Federal Reserve Dist rict-Boston
Maine-Bangor_
589.973
573,503
Portland
3,371,655
3,545.196
Mass.-Boston _ _ 315,000,000 454,743.350
Fall River_943,811
1,202,010
Lowell
554,637
489,09
New Bedford....
1,139,892
922,42
Springfield_ --5,102,677
4.368.47
Worcester
3,759.324
2,832,57
Conn.-Hartford
16,728,614
13,104,06
New Haven_ _ _
6.381.439
6,245,92
10,660.300
R.I.-Providence
14,642.200
727,31
H.-Manches.
688,475
Total(12 cities)
359,239,131
1929.
1928.
--30.7
--21.5
--11.8
--19.1
--14.4
--24.6
--16.7
--2.1
--27.2
+5.6
605.600
3.413,681
480,000,000
1,431.225
1,267,626
1,102,492
5,362,059
3,328,386
16,027,594
7,571,052
16,168,800
903,027
547,262
3,772.469
612,000,000
1,633,276
1,310,864
1,348,856
5,142.006
3,869,431
17,327,193
8,820,158
16,992,500
867.046
508,077,787 -29.3
537,181,542
673.631,061
Second Feder al Reserve D strict-New
N. Y.-Albany.._
6,557,539
5,471.670
Binghamton...._
1,123,198
859,645
Buffalo
50,882,348
34.055.799
Elmira
849.524
1,004,977
794,173
Jamestown__ _
1.065,014
New York_ --- 5,138,019.274 7,078,302,412
Rochester
9,547,963
11.615.787
4,248,743
Syracuse
5,723,501
Conn.-Stamford
3.938,241
3,419,993
857,184
614.626
N.J.-Montclair_
29,688.036
Newark
42.495.966
64.989,272
57,786,795
Northern N..1_
-2.7
York
6,994.053
--I6.6
6,496,702
--23.5
1.267,141
1,369.071
--33.1
63.473.959
58,880,756
--15.5
840,133
1,236,352
--25.4
1.187.801
1,360.587
--27.4 7,560.704,373 8.920,735,160
--17.8
13,732,540
14,781,178
--25.8
4,441,448
6,510.624
--I3.2
4,815,282
5,015.262
835,981
--28.3
1,034,320
40,835,302
--30.1
1,118,891
--11.1
64,732.250
58,327.596
Total(12 cities) 5,285,356,241 7,268,555,439 -27.3 7,753,035,192 9,118,322,924
Third Federal Reserve Dist rict-Philad elphla
639,419
1,197,747 --46.6
Pa.- Altoona-4,333.230 --33.1
2,897,463
Bethlehem_ _ _ _
993,681 -21.3
782,398
Chester
1,908,004 +7.2
2,045,355
Lancaster
Philadelphia _ _ 330.000.000 488,000,000 --32.4
3,165,044 --1.5
3,118,919
Reading
4,813,051 --24.9
3,614,227
Scranton
3,354.805 --31.5
2.296,433
Wilkes-Barre_ _
2,295,904 --14.7
1,957,855
York
5.172.000
7,991.000 --35.3
N.J.-Trenton-
1,579,277
5.611.934
1,179,029
1,922.268
702,000,000
4,052.864
5,263,247
3,664,06
2,046,87
6,143,75
1,756,118
5.673,320
1,192,316
1,841,920
698.000,000
4.118,959
6.667,432
4,571,540
2,230,354
5,684.497
518,052,466 -32.0
733,463,309
731,736,456
Fourth Feder al Reserve D strIct-Clev eland
d399,000
4.316,000 -90.8
Ohio-Akron__ _ _
3,717.256
Canton
65,672,427
57,035,438
Cincinnati
91,679.085 137.276.138 --33.2
Cleveland
16,054.000 --40.4
Columbus
9,565.000
1,796.870
Mansfield
Youngstown _
3,950,341
Pa.-Pittsburgh _ 115,862,634 218,308,157
4,834,000
4,289,587
71,693,239
153,911,532
16.108.300
2.137,582
3.941.752
186,522.383
6,840,000
4.330.527
76.913.708
156,166.138
16,070,800
2,364,607
5,270,224
224,470,873
Total (10611169)
352,524,069
451,091,189 -39.1
443,438,375
492,426,877
Fifth Federal Reserve 031st rIct-Richm ondW.Va.-Hunt'g'n
1,106.808 --37.6
690,988
4,613.960 --17.9
Va.-Norfolk _
3,787,883
Richmond.. _ _
47.626.000 --22.0
37,151.604
8.0.-Charleston
2.080.936 --27.9
*1,600.000
Md.-Baltimore _
93,009,303 --22.0
72,504,080
D.0.-Washing'n
23.844,460
28,194.939 --15.4
1,286,721
5,341,329
55.476,000
2,274,513
105,876,054
27,724,377
1,287.728
7,370,967
53,154,600
2,144,000
106,368,299
29,629.029
176,631.946 -21.6
197,978,994
199,954,623
Sixth Federal Reserve Dist rict- Atlant a3.295,286
Tenn.-Knoxville
2,000,000 +64.8
Nashville
11,161,853
17.757.696 -37.1
_
36,700.000
Oa.-Atlanta
46.916,086 -21.8
1,237,873
Augusta
1,795,940 -31.1
698,283
1,630,605 -57.2
Macon
12,534,310
Fla.-Jacksonv'le
14,667.056 -14.5
12.098,153
Ala.-Birm'gham
18.531,650 -34.7
1,573,000
2,290.000 -31.3
Mlee.-Jackson._
1,278,034
1,647,463 -22.4
Mobile
106.991
159.833
33.1
Vicksburg
35.131,564
46,528.347 --24.5
La-New Orleans
3,000,000
24,962,967
59,457,135
2,722,277
2,110,994
16,367.793
26.847,035
2.139,000
2,126,648
228,073
55,877,113
3.061.376
24,318,538
68,017.620
2,364,548
2,099.882
18,856.016
29,445.098
3,221.000
2,215,921
475.658
57,798,821
195,839,035
211,874.478
Total(8 cities)_
Total(6 cities)_
274,541,157
139,479,015
Total(11 Oltle2) 115,815,347
153.924.676 -24.7
485.885.179
753.695,457 -35.5
Eighth Federa I Reserve Die trict-St. L
5,195.675
2,552,541
89,200.000 128.200,000
Mo.-St. Louis....
26,844.556
23,214,772
Ky.-Louisville_
484,335
250,028
Owensboro _ _
16,531.307
14,425,563
Tenn.-Memphis
167,2'52
128,949
111.-Jack80nville
596.533
697,144
Quincy
1929.
227.447
954,944
206,636.491
7,562,404
2,805,325
4.504,031
21,037.000
2.732,196
5,738,012
30,756.831
3,001,574
10,046.932
6,452,106
1,548,549
1.637,702
652.427,985
1,104.434
5,291,498
3,831,353
2,313.722
1928.
268,475
1,168,545
277,201,465
8,516.646
2,752.561
4,405,972
23,440,000
3,389.353
5.712,637
31,735,913
2,888,965
8,850,414
6.787.306
L611,189
2.490,456
727,473,883
1,431.519
5,768,076
3,964,063
2,889,968
969.062,330 1,122,745.406
ouls---50.9
--30.4
--13.5
-18.4
--12.7
--22.9
+16.0
5,313.407
146,000.000
37,320.492
663,179
28.064.216
314,321
1,291,514
5,909,321
164,600.000
4.5,460,719
672,150
30,417,222
415,307
1,401.246
178,019,658 -26.7
216,967,129
248,875,965
Ninth Federal Reserve Dis trict-Minn eapolls
4 ,616,793 -41.7
2,689.672
Minn.-Duluth,,
77,265,563 -17.9
63,420,010
Minneapolis_ _ _
26,075.201 -23.2
20,036,686
St. Paul
2,040,764 -6.2
1,913,006
No. Dak.-Fargo
1,076.031 -39.3
652,697
S. D.-Aberdeen
668,866 -39.4
405,286
Mont.-Billings..
-23.7
3,315,500
2,528,268
Helena
9,186,421
90.417.286
28.777,784
2,000,000
1,177,745
625,139
3,639,505
12,244,774
91,310,352
36,192.642
2,108,661
1,375.914
806,202
4,262,000
Total(7 cities)-
130,468,997
115,058,718 -20.3
135,823,880
148,300.545
Tenth Federal Reserve Die tact-Kans as City
279,077 -20.5
221,840
Neb.- Fremont..
462.640 -57.3
197.417
Hastings
3,149,141 -21.7
2,464,692
Lincoln
41,991,336 -31.1
28,915,445
Omaha
„ -34.4
2,020,052
Kan.-Topeka_ _
6,647,829 -34.
4,350,005
Wichita
116.641,820
-31.
80,188.425
City_
Mo.-Kan.
5.128.876 -29.
3,599.184
St. Joseph..- _ _
1.169.327 -18.
951,094
Colo.-Colo.SINN
a
a
Denver
1.536,671 -31.
1;58,774
Pueblo
352.277
511.882
3.363.098
47,132.799
3.709.266
7,537,614
144,823.791
6,360.567
1,136,569
a
1,790.362
371,520
467.237
3,710,801
43,299.268
3,983.436
9,277,667
140,308,310
6.264.199
1.180,406
a
1,547,467
Total(7 citles)_
91,645,625
180,085,980 -31.2
216,718,225
210,410,311
Eleventh Fede ral Reserve District-Da Ilas-1,422,913 --15.8
1.198,864
Texas-Austin_ _
42.357,406 --I3.7
36,548,547
Dallas
9,880.308 --15.5
8.344,324
Fort Worth
3,884.000 --10.2
3,488,000
Galveston
3,741,171 --23.3
2,868,324
La.-Shreveport-
1,723.642
65,132.955
16,652.789
5.748,000
5,834,408
1,574,593
63,456,104
18.690,562
6,797.000
5.980.649
61.285,798 -14.4
95.091,794
96,498,908
Total(10 citieS)
Total(5 cities)_
123,966,928
52,448,059
Twelfth Feder al Reserve D IstrIct-San Franc' SCO-40,496,487
36,823.586 -20.3
29,347,944
Wash.-Seattle__
13,001,000
10,656,000 -22.9
8,211.000
Spokane
1,767.351
50.5
1.285,761
636,036
Yakima
38,023.542
32,172.257 -25.2
24,059,726
Ore.-Portland,_
23,300.647
19,836,418 -29.4
13,995,029
Utah.-S.L.City
8,151,971
7,756.533 -37.4
4.852,845
Calif.-L.Beach_
Los Angeles..._ Will no longer report clearin ss.
6,235.241
25.3
6,605,779
4,935.879
_
Passadena8.286.613
7.622.942
7,581,980
Sacramento_ _ _
6,426.889
5,880,822 --25.
4,376.146
San Diego.. _ _ _
210,156,238
San Francisco_ 134,729,263 191,743.618 --29.
2,133,095
3.087,877 --28.
2,211,554
San Jose
2.161.902
2.146,131 --30.
1,493,638
Santa Barbara_
2.145,915
2,222,240 --33.
1,467,731
Santa Monica_
2,521,500
2,361,100 --24.
1,782.308
Stockton
50,556,753
14,462,000
1,494,691
39.094,899
22,381,726
9,483,847
7,811,873
8.461.123
7,894.921
228,064.710
3,312,502
1,859.394
2.150,808
2,577,100
Total(14 cities) 239,681,079 330,201,064 -27.4 364,808,391 399,606.347
Grand total (122
7 651,050,827 10694680,178 -28.5 11859 08,196 13654383,901
cities)
Outside NewYork 2,513,031,553 3,616,377,766 -30.5 4,298,703.8234,733,648,741
Week Ended DeC.17.
1931.
CanadaMontreal
Toronto
Winnipeg
Vancouver
Ottawa
Quebec
Halifax
Hamilton
Calgary
St. John
Victoria
London
Edmonton
Regina
Brandon
Lethbridge
Saskatoon
Moose Jaw
Brantford
Fort William
New Westminster
Medicine Hat... _
Peterborough....._
Sherbrooke
Kitchener
Windsor
Prince Albert_ _ _
Moncton
Kingston
Chatham
Sarnia
Sudbury
mm.1(52 ritiff0
1930.
Inc. or
Dec.
1929.
1928.
$
$
2
%
$
96,150,052 126,721,786 -24.1 178,220.890 158,522,850
87,448,137 113,334,627 -22.8 168,002.679 145,306.373
75.661,026
54.481.856
42,718,126
47.937,311 -10.9
23,407.015
20,237.153
19,659,010 -31.6
13.441,935
9,117,730
9,462.997
7,490.955 -17.5
6,178,916
7,615.773
7.085,819
6,142,366 -21.8
4,802,912
3,676,574
6,278.686
-14.2
3,115,932
2,672,985
6.569,008
6.393,232
5,444.405 -22.7
4.207.716
15,586.934
10,780.627
8.431.366 -32.8
5,664,130
3.104,338
2,433.046
2,035,392 -11.4
1,803,457
2.995,194
2,465.180
2,110,798 -27.0
1,540,073
3,714,363
3,580.277
-17.0
3,167.759
2.628,087
7,722,279
7,166.396
5,267.091 +15.6
6,087.175
6,881.497
6.352.798
4,237.784 +2.1
4,327,870
906,568
725.530
512,705 -16.2
429,860
921,650
715.583
510.623 -19.1
413,301
2,844,547
3.244.875
2,160.174 -20.1
1,725,258
1.801.127
1.281,103
942.688 -37.8
586.770
1.501.819
1.343,399
1,406.88 -35.1
912,780
1,230.846
1,144,248
-24.7
853.98
643,004
906.955
819.542
733.79 -32.4
496,302
678.917
477.246
407,39 -49.8
204,329
1.096,800
892.411
+38.9
580,22
805,796
1,073,348
1,067,789
782,32 -12.4
685,671
1,579,440
1.439.962
1.308,38 -12.1
1,149,917
5.163.280
6,124,711
3.307.13 -18.6
2.692.525
575,358
576.217
449,86 -24.8
338.456
1.369.628
1,318,735
869.07 -14.5
743,173
794.997
951.896
817.25 -16.0
686.778
954.098
730.912-5.8
995,181
688,267
739,959
619.25 -21.1
736.226
488,496
601.244
968,01 -37.9
293.963.498
373.057.272 -21.2
505.977,495
494.839.146
•Estimated. a No longer reports weekly clearings. b Remain ng banks exchanging checks d rect, no clearings figures available. c Three large banks elOsed.
clearing house not functioning. d Figures smaller due to merger of two largest
banks. e Clearing house discontinued.
.‘
4278
FINANCIAL CHRONICLE
[VOL. =la
THE ENGLISH GOLD AND SILVER MARKETS.
PRICES ON PARIS BOURSE.
We reprint the following from the weekly circular of
Quotations of representative stocks on the Paris Bourse
Samuel Montagu & Co. of London, written under date of as received by cable each day of the past week have been
as follows:
Dec. 9 1931:
GOLD.
The Bank of England gold reserve against notes amounted to £120,711.125 on the 2nd inst., as compared with £120,709,600 on the previous
Wednesday.
About £750,000 in bar gold arrived from India by the SS. "Ranpura"
on Friday last, but the bulk of this amount has been sold forward and
only a small balance was available for disposal in the open market. A
considerable business continues to be done in gold consigned from India
and largo amounts have already been engaged for shipment by the SS.
"Viceroy of India," sailing from Bombay this week. On the 11th inst.
the SS. "Naldera." is duo to arrive in London with £1,800,000 bar gold,
and on the 18th inst. the SS. "KaIsar-i-Hind" with £1,600,000.
The small quantities of gold offered in the open market during the week
have been disposed of to the Continent.
Quotations during the week:
Dec. 3
Dec. 4
Dec. 5
Dec. 7
Dec. 8
Dec. 9
Average
Per Fine
Ounce.
Equivalent Value
of £ Sterling.
122s. 3d.
122s.
124s. ld.
1265. 24.
126s. 10d.
126s. 6d.
1245. 7.7d.
136. 10.8d.
13s. 11.1d.
13s. 8.3d.
13s. 5.64.
13s. 4.8d.
13s. 5.1d.
13s. 7.6d.
The following were the United Kingdom imports and exports of gold
registered from mid-day on the 30th ultimo to mid-day on tho 7th inst.:
Exports.
Imports.
£1,141,292 Franco
62.565 Netherlands
148.971 Switzerland
Germany
16.363 Austria
107,183 United States
14,838 Other countries
British South Africa
British West Africa
British India
Straits Settlements and
Dependencies
Netherlands
Other countries
£2,381,910
635.557
2.302,361
99.959
27,855
967.405
17,995
£1,491,212
£6,433,042
SILVER.
3rd
inst.,
recovered
in full on the following
After a fall of 5-16d. on the
day, prices have followed a pronounced upward trend, and with small
buying orders on a poorly supplied market this was continued until 20 11-16d
and 20%d. were quoted for cash and forward delivery respectively on the
8th inst. Purchases on Continental account have again been a feature.
At the higher level speculators have sold and America has forsaken the
reluctance to do so, which has been in evidence for the greater part of the
week. In consequence, and with some improvement in sterling, prices
have reacted sharply to-day.
The following wore the United Kingdom imports and exports of sliver
registered from mid-day on the 30th ultimo to mid-day on the 7th inst.:
Imports.
Exports.
£55,769 Germany
22,289 United States
8,250 British India
8.387 Other countries
Mexico
United States
Canada
Other countries
£94,695
Quotations during the week:
IN LONDON.
£151,214
IN NEW YORK.
Bar Silver per Oz., Standard.
2 Mos.
Cash.
Dec. 3
Dec. 4
Dec. 5
Dec. 7
Dec. 8
Dec. 9
Average
1994d.
19 7-16d.
1994d.
2094d.
20 11-16d.
19414.
19.854d.
105-16d.
19%d.
19 13-16d.
20 11-16d.
20%d.
19 15-16d.
20.0426.
£33,320
29,500
75,654
12,740
(Cents per Ounce. .999)
Dec. 2
Dec. 3
Dec. 4
Dec. 5
Dec. 7
Dec. 8
29
29
29
2931
3031
29%
The highest rate of exchange recorded on New York during the period
from the 3rd to the 9th inst. was $3.40 and the lowest $3.233i.
INDIAN CURRENCY RETURNS.
(In Lacs of Rupees)-
Notes in circulation
Silver coin and bullion In India
Gold coin and bullion in India
Securities (Indian Government)
Nov.30.
Nov.22.
Nov.15.
16236
12936
448
2852
16289
12989
448
2852
16311
13011
2846400
The stocks in Shanghai on the 5th inst. consisted of about 58,800,000
ounces in sycee and 165,000,000 dollars, as compared with 59,800,000
ounces in sycee and 169.000,000 dollars on the 28th ultimo.
Statistics for the month of November last are appended:
Highest price
Lowest price
Average price
-Bar Silver per Oz.Standard (Delivery)
Cash.
2 Mos.
-Bar GoldPer Fine
Ounce.
219-166. 21344.
18d.
17 15-16d.
19.3924. 19.367d.
117s. 114.
108s. 2d.
1109. 8.95d.
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.,
Dec. 19.
Dec. 21.
Wed.,
Tues.,
Thurs.,
Fri.,
Dec. 22. Dec. 23. Dec. 24. Dec. 25.
Sliver, per oz__ 20 7-16d. 20 7-16d. 20 5-16d. 19 15-16d. 20d.
Gold, p.fine oz. ____
122s. Id. 1215. 10d. 120s. 76. 120s. 26.
Consols,
%- 5394
534
54w.
54
535i
British. 5%--9534
945(
943j
9554
British, 4!_%.
91
92
91.
91.15
French Rentes
HOLIDAY
(in Paris) 3%
francs-----French War L'n
(In Paris) 5%
francs------
78.70
78.20
77.80
77.20
100.10
The price of silver in New York on the same days has been:
Silver in N. Y.,
per on. (cts)- 31
99.50
3031
99.40
3034
95.50
303-4
3034
Dec. 19 Dec. 21 Dec. 22 Dec. 23 Dec. 24 Dec. 2,
1931.
1931.
1931.
1931.
1931.
1931.
Francs. Francs. Francs. Francs. Francs. Francs:
Bank ot France
11,000 10,800 10,900 11,000
Bank Nationale de Credit
73
60
Banque de Paris et Pays Bas
1,020
1,040
1-0325
1:0
-20
Banque de Union Parlaienne
300
326
334
315
Canadian Pacific
347
290
270
Carial de Suez
11.725 11,750 11.700
-Cl. Distr d'Electricitle
1,876
1,871
1,910
Cie General d'Electricitle
1,880
1,860
1,900
1.890o
Citroen 13
475
470
461
Collinear Nationale trEecompte
960
060
970
-006
Coq. Inc
250
250
250
260
Courrierce
350
3.50
353
Credit Commerciale de France
.585
575
580
Credit Fonder de France
4,080
4,050
4,145
4,080
Credit Lyonnais
1,500
1,490
1.500
1,510
Distribution d'EloctrIcitle la Par
1,900
1,900
1,900
1,020
Eaux Lyonnais
1,860
1,820
1,860
1,860
Energle Electrique du Nor&
551
545
545
Energie Electrlque du Littoral_
860,
862
865
French Line
91
89
82
82
Oates Lafayette
84
82
79
80
Gas Le Bon
710
710
710
700
Kuhlmann
290
290
290
290
L'Air Liqulde
HOLT470
470
480
480 HOLILyon (P. L. M.)
DAY
1,125
1,121
1,137DAY
Mines de Courrleres
350
350
350
-5(16
Mines des Lena
380
380
380
380
Nord fly
1,440
1,440
1,450
1.450
Paris, France
1,290
1,250
1,250
1,250
Paths Capital
100
95
97
Pechlney
1,020
1,010
1,010
1.035
Rentee 3%
78.70
78.20
77.80
77.20
Rented 5% 1920
103.00 121.90 122.20 123.00
Rents.4% 1017
94.40
94.10
94.30
95.20
Reines 5% 1915
99.50 99.40 99.50 100.10
Rents.8% 1920
102.00 102.00 102.00 102.50
Royal Dutch
1,110
1,060
1,080
1,090
Saint Cobb. C.& C
1,660
1,640
1,600
- --Schneider & Cl.
1,045
1,045
1,031
Societe Andre Citroen
470
460
460
"465
Societe General Fonder°
146
153
136
143
Societe Francalse Ford
102
101
101
101
Societe Lyonnais
1,870
1,825
1,880
Societe Marseilla1se
635
630
628
Sues
11,700 11,700 11,700 11-,7150
Tublze Artificial Silk prof
135
134
132
143
Union d'Electricitle
750
750
760
760
Union des Mines
325
--__
230
---wagon-Lite
94
85
97
__--
PRICES ON BERLIN STOCK EXCHANGE.
The Berlin Stock Exchange is closed.
New York quotations for German and other foreign unlisted dollar bonds as of Dec. 24:
Bid.
16
18
1534
30
9934
8394
30
18
45
174
Bavaria 63-i8, 1929-1945
Brandenburg Electric 6%, 1953
East Prussian Power 8%. 1953
European Mortgage A Investment 7346. 1966
French Gus caimans 534s, 1937
French National Mall 8. S. Line 6%, 1952
German Atlantic cable 7%, 1945
German Building & Landbank 6 Si %. 1943
Hamburg-American Line 63.48. 1935
Housing & Realty Imp. 7s, 1946
Hungarian Central Mutual 7a, 1937
Hungarian Discount & Exchange Bank Th. 1983
Hungarian Italian Ban., 794%. 1932
Koholyt 61,is, 1943
halvah( Overland Power 63-4%; 1946
Leipaig Trade Fair 7s, 1953
Marmhein & Palatinate 75, 1941
Munich 7s, to 1945
Nassau Landbank 614%. 1938
Oberpfalz Electric, 7%, 1948
Paris-Orleans fly. 68, 1956
Pomerania Electric 6%, 1953
Protestant Church (Germany) 714a, 1946
Provincial Bank of Westphalia 6%. 1933
Rhine Westphalia Electric 7%, 1936
Roman Catholic Church 694%, 1946
Roman Catholic Church Welfare 7%, 1948
Saarbruecken Mortgage Bank 68, 1947
Saxon State Mortgage 6%, 1947
Siemens & Halske debentures 8%; 2930
Stettin Public Utilities 7%, 1946
17
48
1894
15
23
'0
18
15
38
1734
14
16
32
26
50
210
18
25
20
United Industrial 6%, 1945
Wurtemberg 78, 1928-1945
Crinuntrcialiand
Asked.
20
21
1794
34
101
8634
34
20
55
2294.
23
21
53
2134
34
20
27
25
25
30
__1994.
23
19
41
35
31
30
225
25
30
30
iscUanonsgems
Breadstuffs figures brought from page 4352.-All
the statements below regarding the movement of grainreceipts, exports, visible supply, &c., are prepared by us
from figures collected by the New York Produce Exchange.
First we give the receipts at Western lake and river ports
for the week ending last Saturday and since Aug. 1 for
each of the last three years:
Receipts atChicago
Minneapolis_
Duluth
Milwaukee_
Toledo
Detroit
Indianapolis_
St. Louis_ _
Peoria
Kansas City _
Omaha
St. Joseph_
Wichita
Sioux City__
Total wk.'31
Same wk.'30_
Same wk.'29_
Flour.
Wheat.
Corn.
Oats.
Barley,
Rye.
bb13.14)(30s.blah.60 lbs.bush. 56 lbs. bush. 32 lbs. bush.48lbs bush.5619s.
139,000
161.0001
729.000
202,000
107.000
5,000
702,0
212.000
40.000
220.000
39.000
154,000
69.0001
5.000
7,000
32,000
183,000
246.000
61,0001
241,000
2,000
1.000
31.000
7.000;
14,000
12,000
20,000
380,000;
150,000
555,000
121.000
228.000
103.000
43,000
2,000
56.000
176,0001
39.000
22,000
832,000
11,000
139,000
26,000
213,000
41,000'
28,000
192.000
33,000'
43,000
326.000
3,000
2,000
21,000
99,000
17.000
336,000
379,000
393,000
3,371.000
5.736,000
4,829,000
2,355,000
8,039,000
5,938,000
937,000
1,672,000
1,620,000
52,000
594,000
814,000
200,000
845,000 1,796,000
Since Aug.11931
9,580.000187.097,000 56,719.000 36.468,000 19.643.000 3.787,000
1930
9,183,000 236,187,000 82,833.000 63,795.000 32,229,000 14,707,000
1929
9.405,000241,738,000 98,830,000 78.641,000 46.471.000 16,448,000
1
DEC. 26 1931.]
FINANCIAL CHRONICLE
4279
per Sh.
$ per Sh. Shares. Stocks.
Shares. Stocks.
10 112 E.83rd St.Realty Co.. Inc,
600 Maryland Title Securities Corp.
corn., no par: 10 112 E. 83rd St.
5700 lot
common. Par $Io
Realty Co., Inc., pref.: 10 Park
1,400 Mtge. Bond & Title Corp.,
East Operating Corp., no par--.310 lot
$4,000lot
Customs Receipts
common,no par
Merchandise Movement at New York.
Manilas Realty Corp.,no par 520 lot
at
5634
Corp.
Radiation
Concealed
150
New York.
$15 lot 5634 Manilas Realty Corp.. no par $20 lot
Exports.
v. t. c
Imports.
Month.
5634 Manilas Realty Corp., no par $20 lot
211 United West Indies 8% cum.
1930.
1931.
$6lot 5634 Manilas Realty Corp., no par $20 lot
1931. I 1930.
preferred
1930.
1931.
5634 Manliss realty Corp., no par $20 lot
Note of Cananova S. S. Corp. for
24.678,913
8 Mercantile Trading Co., cora--$100 lot
15,764.232
Nov.
dated
9.252
int.
815%,
$125,000,
94,604.8231158,67
152,812.382
87,278.807
Janniwy
14 Mercantile Trading Co.. com_3100 lot
Can20,705,240
of
16,741.196
mtge.
9.298
12 1925: preferred
rebruarY 83.741.723 136.999,034 91.338,3021143,65
200 Union Financial Corp., ci. A.
17,612.788 23,765.513
anova 5.5. Corp. on steam vessel
101.718,797 139.891,390' 86.927.C5 143,299,606 14.702,264
$1251ot
no par
23.010,593
above
the
securing
"Cana.nova,"
459
3.
90.924,314 148.366.031 80.714.2131i82.00
April
50 Business Securities corp.. pref_s20 lot
13.569.915 20.659,611
described note: note of Cayo
83.714,133 135.023,042 74.505.792 . .
May
34,933.670
700 units Blackhurst Realty Corp..
$125,000,
14,455.089
for
Corp.
S.
105,065.146
S.
74,235.131
Mambi
4.90
86.982,205119.55
June
consisting of 700 ohs. pref. and
int. 615%, dated Nov. 12 1925:
84.823.090 09,990,23 67.058.129 98,069,398 17,237,635 15.617.549
.71113,
$5lot
700 shs. corn
preferred mtge. of Cayo Menai)!
81,423,455 99.085,28 59,208,716 97,722,024 20,162,713 16.700,854
August.
Cranfield & Clarke, Inc.. pref.:
100
20,672,440
vessel
21.683,259
steam
92,321.673
on
Corp.
67,749,087
S.
S.
110,496,85
September 94,872,046
par
no
$10108
com.,
100
22,811,155
the
18,506,473
securing
"Cayo Mambi"
92,059,201 124,376,64 65,352,268 95.822,9911
October
600 Dreamland Park Co.. pref..
above described note: 5,250 shs.
par $25
$27lot
Casanova S. S. Corp.: 5,250 abs.
887,537,771 1286595800 760,691,614 1197269665 169,435,544 229,555.538
Total
Cayo Mambt 8.5.Corp-510.0001ot 200 Dreamland Park Co.. prof..
$11 lot
Par $25
400 Northland Gasoline Co_ _ .51,0001ot
$6 lot
10 Texas Electric Ry.,com
Movement of gold and silver for the ten months:
18 Bachmann Emmerich & Co.,
$12 lot
$135 lot 100 Texas Electric Ry., pref
Inc., pref. A: 18 1st prof
011 & Gan Co..
Producers
1,250
Co..
&
Emmerich
Bachmann
47
Silver-New York.
Gold Movement at New York.
$2 lot
Dar $10
$1,0001ot
Inc., pref. A:47 1st pref
40 Kanawha & Hocking Coal &
54 Bachmarin Emmerich & Co..
Imports.
Exports.
Exports.
Imports.
$10 lot
Month.
Coke Co., corn.: 12 pref
$1.2501ot
Inc., pref. A:541st pref
250 Robert Muller & Co..6% pf_ _ $40 lot
24.000 White Lake Mines, Ltd.,
1931.
1931.
1930.
1931.
1931. I 1930.
$250 lot 75 Copco Trading Co.,corn., no par $5 lot
par $1
200 Hildick Corp., el. A, no Par:
aggregating
notes
8.874.560 1,034.436 2.930,317 Three demandmade
$20 lot
January -- 9.404.455 7,201,382
143 class B,no par
by Lakeland
$25,469.95.
839.418
168,467 7.038.826
February. 11,409.143 14.593,919
1,055 Armstrong Appliance Corp.,
enCo.,
Fertilizer
&
Phosphate
485.858 1.687,817
265,000,
2.000
March-- 20,320.531 7.108,051
class B. no par: 105 cl. A,no par_55 lot
$10 lot
dorsed without recourse
2396,882
1.156.582
90.600,
36,213,539 40,888.115
April
Note of Percy It. Leeman, in the
Hotel, Inc. (Fla.),
50,000 1,750,074 1.478,360 20 Community
20,000
46.392.331 2.943405
May
sum of $32,850.00 payable only
pref.: 20 common (par 520)-550 lot
1.108,425 1,325,053
37.000
35.321.267 1.584.804
June
from diva, or proceeds of liquidaLaundry, Inc.
Turner
F.
Beni.
25
1,321,509
525,184
10.926.608 13,156,577 1.000.328 30,001,977
July
tion which may be credited to
lot
$13
pref
J.),
(N.
1.234.391
32,500 35,314,272 1.590,55
August-- 25.844,790 4,592.811
him through his ownership of 90
639,872 1,282.981 150 Astoria Mahogany Co.(N.Y.),$6 lot
September 35,034,9451 5.263,713 28,690,327 3474,842
ohs. of capital stock of Shroder
preferred
791,382 1,181.579 25
30.000
$60108
October__ 25,656.339, 17.825,288398.411.056
dr Koppel Properties. Inc
Hodgman Rubber Co.(N. Y.).
$2 lot 850 Rogers, Brown & Crocker
preferred
$70108 .
Total-- 258.523.948 114,956,265428.253.21ll 78,759,618 16.101,196 15,478,107 75 Columbia Graphaphone Co..
Bros., Inc., pref
$80 lot
$160 lot 500 Colonial Iron, corn
pref. (par 31)
25 Welsh Dishwasher, Inc., no par $25lot 5 Am. Woman's Rlty. Corp., pf-415 lot
100 Pearson's Magazine, Inc.. com-$3 lot
National Banks.-The following information regarding 50 U. S. Rayon Corp., common.
no par:50 cony cum. pref., no par $5lot 10 Erni Bellan Theatre, Inc., pref..
national banks is from the office of the Comptroller of the 100 Hambleton Corp.. pref., no
51 lot
par $5
5 50 Commonwealth Secure.. Inc.,
Currency, Treasury Department:
Par
$26108
(Del.) corn
100 Hambleton Corp., com., no par 20
25
400 Magazine Repeating Razor Co.
CHANGE OF TITLE.
50 Kirby Lumber Co
50e
J.) class A,no par
Dec. 14-The American National Bank of Mt. Carmel, Illinois, to "Amer- 49 St. Andrews Bay Property,com- lot (N.
$25
795 Magazine Repeating Razor Co.
mon trust ctf., no par
ican-First National Bank of Mount Carmel."
$21108
par
no
B.
class
J.)
Garage,
National
(N.
Anton.
Parking
Kent
"First
to
100
Dec. 16-The First National Bank of Mankato, Minn.,
1,000 Imperial Royalties, pref..
Inc.(N. Y.), corn., no par: 100
Bank & Trust Company of Mankato."
$175108
3151ot
Par $1
6% cum. pref
100 Echodon, Inc. (Del.) par 510_31 lot
Mining
Co.
Stewart
(Idaho).
Capital.
1.000
VOLUNTARY LIQUIDATIONS.
100 Chic. St. Paul Minneapolis &
Gas Co.
State
Bay
100
$1;
par
$100,000
Dec. 14-The First National Bank of Mount Carmel, Illinois__
23(
Omaha Ry., pref
(Del.), national stock, par $50;
Effective Nov. 101931. Liq. Agent,Pen H.Stansfield,
128 Rainier Pulp & Pap. Co., $2
700 Cracker Jack Mining Co.
Mt. Carmel, Illinois. Absorbed by The American
cum. corn. class A, no par----5300 lot
Red Hill Min700
31:
par
(Ariz.),
National Bank of Mt. Cannel, No. 5782, which has
330 Rainier Pulp & Pap. Co., corn.
ing Co.(Ariz.), par 51; 100 South
changed its title to "American-First National Bank of
$100 lot
B voting tr. ctfs., no par
Utah Mines & Smelters Co.
Mount Carmel."
400 Olympic Forest Prods. Co..
(Maine). par 35; 100 Adventure
no
-320
lot
parctis.,
tr.
voting
con.,
Co.
$50,000
_
Consol. Copper
(Mich.).
Dec. 14-The National Bank of Morrow Co. at Mt. Gilead, 0_
40 Olympic Forest Prods. Co..
par 825:50 Keweenaw Copper Co.
Effective Nov. 7 1931. Liq. Agent, The Mt. Gilead
$30108
par
no
lot
pref.,
$26
$25
par
(Mich.),
National Bank, Mt. Gilead, Ohio. .Absorbed by The
160 Olympic Forest Prods. Co., pi.
1 unit Bowman Blltmore Hotels
Mt.Gilead National Bank, Mt. Gilead, Ohio. No.6620.
stpd. div. accruing after June 1
Corp.. consisting of 10 she, con.,
$25 lot
$25,000
Virginia_
lot
West
1930, no par
$85
prof
Hendricks,
let
of
sbs.
10
Bank
and
par,
no
Dec. 16-The First National
10,000 Genii MinIng Co.. par $1-$25 lot
1,000 Bowman Blltmore Hotels
Effective Dec. 15 1931. Liq. Corn., C. W. Minear,
lot
5101
pref
Corp.,
Phalle
lot
St.
50
$250
par
no
Corp..
the
care
of
liquiDavis,
E.
Geo.
C. A. Roberts and
1 Harrison-Rye Realty Corp.--$1,525 lot 50 St. Phalle Corp., corn., no par_131 lot
dating bank. Absorbed by The First National Bank of
254 Jackson Invest. Co.. par 510.510 108
16 Holster Radio Corp., common,
Parsons, W. Va., No. 9610.
$1 lot 10,000 Arizona Globe copper Co..
DO par
$50,000 18 Threadwell Tool Co., no par....54 lot
$36108
par 51
Dec. 17-The Citizens National Bank of Hinton, W. Va
230J. L. Gibson Lumber Co.. pref.$101ot 308 Jackson Trust Co.. par $25.$l0 lot
Effective Dec. 14 1931. Liq. Agent, P. P. Vines,
Co..
Stone
Lime
Indiana
comNational
1,000
Inc.,
First
by
The
Hinton, W. Va. Absorbed
75 Cellulose Products,
$32108
corn., no par
$10 lot
mon, no per
Bank of Hinton, Charter No. 5562.
100 Indiana Lime Stone Co.. 7%
Cellulose Products, Inc., pref.,
Dec. 17-The Union National Bank of Atlantic City, New Jersey $100,000 50par $50
108
$112
pref
$351ot
cum.
Effective Dec. 15 1931. Liq. Agent, The Atlantic
533 Prospectors Pinance Corp. pf-55 lot
50 Westchester Hosiery Mills, Inc..
First
Nat.
Corp.
Westchester
lot
City National Bank, Atlantic City, N. J. Absorbed
1,000
$10
prof
$250 lot
pref., par $25
by The Atlantic City National Bank,Charter No.2527.
$40 lot
74 Bayshore Co.8% pref
1,000 Westchester First Nat. Corp..
Reclamation Corp.
Dec. 18-The Kaw Valley National Bank of Topeka, Kansan_ 5100.000 2,050 Residuum
$80 lot
par
no
A,
class
$10 lot
common, v.t c., no par
Effective Nov. 13 1931. Liq. Agent, Donald A.Camp80 Westchester First Nat. Corp..
103 H. C. Y. Security Co., Inc.,
bell, care of the liquidating bank. Absorbed by Kaw
$12 lot
class A, no par
H. C. Y.Security Co..
100
pref.:
Valley State Bank, Topeka. Kansas.
$10 lot 2,125 Ry. & Ctn. Inv. Corp.,
Inc., common, no par
$1,105 lot
par
no
A
COM.
_
Theatres
Minn_
Chain
of
Universal
Lake
Bank
Crystal,
National
$30.000
3,000
American
Dec. 19-The
$150 lot 450 Kent Garage Inv. Corp.. of.:
Corp., 26 pref
Effective Dec. 7 1931. Liq. Agent, M. C. James,
$160 lot
450 class B. no par
200 Estates Security Corp., pref..
Lake Crystal, Minn. Absorbed by The First National
_$12 lot 20 Deepwater Coal & Iron Corp..
par
_
common,
$1_
280
$50:
par
Bank of Lake Crystal. No. 6918.
Prof.:
con. V. t. c.. no par; 50
3,689 North American Refractories
$3108
SO corn., no par
$250 lot
Co.. class A, no par
CONSOLIDATIONS.
250 Bennett, Bolster St Coghill,
Refractories
$900,000 7.059 North American
Dec. 16-Calcasieu National Bank in Lake Charles La
Inc.. pref.:40 com. v. t. c. no par 81 lot
$150 lot
Co., class B. no par
The Calcasieu National Bank of Lake Charles, La--$1 200 000 1,325 High Rock Knitting Co., 7%
50 X-It Laboratories, Inc., prof.:
Consolidated to-day under the Act of Nov. 7 1918, as
355 corn., par $10: $2.900 notes
51.000 lot
prior preferred
amended Feb. 25 1927, under the charter and title of
of X-It Laboratories, Inc.. withY. Bankers, Inc., pref., no
N.
75
$35108
"Calcasieu National Bank in Lake Charles," No.
lot
out recourse
$26
Par
13573, with capital stock of $1.200,000. Surplus,
150 Fidalgo Drying Systems. Inc.,
Y. Bankers, Inc., common,
N.
33
$20108
$225,000. The consolidated bank' has eight branches,
1st pref
$3 lot
no par
one branchbeing located in each of the following towns:
50 Gillette Camera stores, Inc.,
60 Estates Security Corp.. pref.,
88 lot
DeQuincy, Jennings, Kinder, Lake Arthur, Oakdale,
$10
par
10 common. par 51...3111 lot
$50:
Par
Sulphur, Vinton and Welsh. These branches were
130 Aurora Health Farm Corp., Pf.$9 lot
200 Consol. Coppermines Co. of
branches of The Calcasieu National Bank of Lake
$120 lot 174 Tamiami City Corp.. cont., no
$5
Del.,
par
$5 lot
par
Charles and all were in lawful operation on Feb.25 1927.
10 Seydel Chemical Co., pref.: 17
$6 lot
87 Tamiamt City Corp., pref
Serelco Products Corp., con.:
$5 lot
$201ot Spark Ave. 39th St. Corp
BRANCHES AUTHORIZED UNDER ACT OF FEB. 25 1927.
83 Serelco, Inc.. class])
1.000 Seneca Copper Corp., no par $10lot
CorporaDec. 16-13180-City National Bank & Trust Company of Philadelphia, 64 1-20th Park-Murray
850 Hediey Gold Mining Co.. Ltd..
tion: $35,800 ctf. of indebt. of
Pa. Location of branch: Vicinity of 63rd St. and Lansdowne
$16108
lot
par 254
$100
Corp
Park-Murray
Philadelphia.
Ave.,
281 Keweenaw Copper Co.. $20 per
-The Chase National Bank of the City of New York. N. Y. 1,000 Industrial Alloy Products
Dec. -2370
$35108
share paid in. par $25
$2 lot
Corp., common. no Par
Location of branch: No. 65 Broadway, Borough of Manhattan.
$6 lot
io Battery FCC= Co
200 Industrial Alloy Products Corp..
New York City.
Marine
Co..
Mercantile
$2 lot Internet!.
preferred, no par
scrip eft. for $60 com,stock trust
20,000 Brazil Gold az Diamond
$1 lot
$31 lot
ctt
Mines Corp., par $1
Auction Sales.-Among other securities, the following, 10 Buds Co. Cons. Brew'g Co_ _.480 lot 12,950 Fraser Electric Transmission
$10108
were
par
no
Exchange,
lot
Corp.,
sold
.515
pi_
at
Am.
of
auction
Corp.
Stock
Disc.
Credit
the
50
at
in
not actually dealt
235% participation in the Warms
50 Credit Disc. Corp. of Amer..
in New York, Boston and Philadelphia on Wednesday of this
Corp.. owner of property at No.
$15 lot
pref.; 50 corn., no par
$30108
no
21 East 66th St. N.Y.C
(N.Y.)
Inc.
Shares,
Union
100
week.
$16 lot 1,000 Hale & Kilburn Co., no Par--55 lot
par
70 Chipman & Co.. Inc.. prof......535 lot 1,000 Interstate Equities Corp.,
By Adrian H. Muller & Son, New York:
$345 lot
corn., no par
i Per 55. 10 Internat. I. T.S. Rub.Co.. pf-$2 lot 100
i per Sh. Shares. Stocks.
Shares. Stocks.
Kent Automatic Parking Garage
165 Skinner Automotive Device
1,500 Old Dominion Co. of Maine,
500 Punta Alegre Sugar Co. ctf. of
100
Kent
par;
com.,
no
lot
Inc.,
$35
corn
Inc.,
(Calif.)
Co.,
$500 lot
par $25
$21 lot
deposit, par $50
Automatic Parking Garage, Inc.,
100 Borough Bond & Mtge. Co..
75 Skinner Motors, Inc. (Del.)
$170,666.33 principal of demand
6% cum. pref.: 250 Kent Invest$40 lot
corn., no par
$3,500 lot
preferred
promissory notes bearing int. at
tug
Corp.. corn., no par: 220 Kent
Corp.,
Operating
H.
&
510 M.
207 Corlite Units Corp., no par:
8% of P. J. Tierney & Sons, Inc..
Investing Corp., cl. B, no par;
corn., no par: 200 pref.: $6,000
14 Corlite Products corp., pre_ $25 lot
follows:
a N. Y. corp., dated asApril
Investing Corp.,7% prof.,
lot
Kent
$6
120
indebtedness
of
ars.
6%
cum. cony.
100 Gillet & Co.
11
April 10 1928, 825,000:
seri A
$15 lot
$25 lot 20 Sirian Lamp Co., pf 100 com$350 lot
preferred
1928. 535,000; Aug. 3 1928,
Corp., class B
100
522
Liquidometer
pref.:
Corp..
Bestos
World
35
lot
Securities
Corp.,
v.t.c.510
National
90
$6,000: Oct. 3 1928, $9,000: Jan.
v. t. a., DO Par
$90 lot
$5 lot
corn160 National Securities Corp., pf....$10 lot
5 1929. 57,500; Feb.7 1929.$10.348 Liquidometer corp.. Cl. A free
10 Be Forest Phonofilm Corp.,
100 Allen Wales Corp, common,
000: Mar. 11 1929. $15.000; May
$10
lot
no
Par
stock,
$58
par
lot
no
lot
$25
no par
9 1929.$6,000; Aug.5 1929, $10,160 National Parking Garages, Inc.
500 Baltimore Co., corn., no par_ _$65 lot 10 Hays Realty Oper. Corp.. no
500:Jan. 10 1930,520,000:Jan. 17
Realty
pref. A
St.
(Del.),
76th
NV.
170
10
par;
$25
lot
lot
$45
Corp.
Securities
Biscayne
50
1930, $18,333; Mar. 10 1030. 58.9,000 Metals Production Co., Dar
Co., Inc.. pref.: 10 170 W. 76th
100 Canora P.Set. Corp.. no oar.$10 lot
833.33. No int. has ever been
$1
St. Realty Co., Inc.. coin. no
$30108
Credits
Home
Corp..
common:
20
foregoing
the
of
any
Dam on
$20 lot 100 Railway Equities Corp.. prof.$180lot
51201ot
Par
$1,000 lot 30 preferred
notes
Foreign Trade of New York-Monthly Statement.
18
4280
FINANCIAL CHRONICLE
[VOL. 183.
Shares. Stocks.
Per Rh. Shares. Stocks.
$ per Rh.
Bonds.
A 2nd mtge. of 214,750.00 reduced
Per Cent.
Bonds.45 Securities Management B Corp.,
Per Cent.
6 850,000 debenture notes of High
to 23,625.00 on premises covering
$5,000 N.Y.Rye. Corp., prior lien
no par
$1 lot
Rock Knitting Co.. dated Mar. 1
1703-5 Madison A ve.
65. ser. A, Jan. 1 1965
$25 lot 19,000 A. J. Orems & Co., pref..
30
1927, subJect to agreement of
100 U. S. Rayon Corp.. corn.; 100
$62,000
N.
Y.
State
Rye., 1st cons.
par $1
$2 lot
Dec. 1 1928 and to extension of
U.S.Rayon Corp., pref.
635s. Nov. 1 1962; Nov. 1929.
$3 lot 250 Residuum Reclamation Corp.,
maturity to Feb. 1 1933____21,000 lot
100 Kent Garage Investing Corp.,
and subs. coup. attached
com.. v. t. c., no par: 875 Kent
154
$36,000 Consol. Tob. Co. 50-yr.
pref. A;50Kent Garage Investing
5500 Portland, Me., R. R. Co.. 1st
Garage Inv. Corp. of Del., corn..
4s, 1951
Corp.. corn., no par
con. 34s. July 1 1951
80
$8 lot
no par; 150 pref
25
$40
lot
$71,642.44 class A offs. of Amer.
175 Tamiamt City Corp., pref.;
524,000
Rochester
Ry.
Co.
2nd
500 Philadelphia Salt Co
mt.
$20 lot
Ref. Props., Wichita Falls,
50 corn., no par
55. Dec. 1 1933; Dec. 1929. and
$1 lot 50 Queens Point Realty Co.. Inc..
Texas, dated Oct. 26 1928;
75 Tansdami City Devel. Co., pref..
subs. coup. attached. (823,000
(N. Y.) pref
3
reduced to $67.343.90
par $10; 75 corn., no par
bonds
lot
$50
&
$1,000
ctfs,
of dep.) _
$1 lot 250 Queens Point Realty Co.. Inc.
$25.000 Hotel Pierre, Inc., 10-yr.
100 Art Cinema Corp., cum. pref.;
$1,000 Syracuse Rapid Transit Ry.,
(N. Y.) corn., no par
500
5. f. inc. debs. 6s, March 15
350 corn., no par
1st mt. Bs, March 11946, ctfs. of
$25 lot 1,250 Amer. Quarries, Inc. (Del.),
1939
100 Empire Bond & Mortgage Corp.
5105 lot
Sep.
corn., no par
3
250
560,000 Temple Terrace (City)
Daigle. pref.; 63 Empire Bond &
$32.000 Syracuse Rapid Transit Ry.
100 Nat. Water Works (Del.) pref.
Fla., 6s, Feb. 1 1946, Aug. 1929,
Mortgage Corp.. corn., no par_ 875 lot
2nd mt. Is, Jan. 1 1930. ctfs. of
B, ctfs. of dep., Par 250
and subs, coupons attahced_23,10°
334
500 Sodamat Corp., no par
dens
8350 lot 1,000 Nat. Water Works(Del.) corn.
SLOW Nevada-Calif. Elec. Corp. lot $2,000
200 Western Oil & Refg. Co., corn.
Saginaw Transit Co., 1st mt.
B ctfs. of dep., no par
350
1st tr. mtge. 5.s. April 1 1956____
A, no par
55. Jan. 1 1949; July 1931, and
$40 lot 105 10-18th Reserve Pet.Co., corn..
22,000 Ill. Power & Lt. Corp., 1st 7134
20 Jackson-Babbitt, Inc., pref.; 20
subs, coup. attached
no par
334
lot
$70
& ref. Is, series C. Dec. 1 1956___
COM,110 par
51,000 Springfield, Ohio, Ry., 1st
$9 lot
Rogers Brown & Crocker
$1.000 New Engl. Gas & El. Assn. 75
100 Palmdale Ranch Products Co._$7 lot 200
mt.55, Sept. 1 1935. ctfs. of dep- 231
Bros., Inc., pref
lot
$300
cony.
deb.
Is,
100 Stelos Co., Inc.
May 1 1950
$22,000 Texas Electric Ky., 1st &
85 lot 1,065 Pressed Metals of America.
526,666.67 promissory note No. 219 5634
300 Stern Bros.. cl. A,no par
ref., mt. Is, Jan. 1 1947; Jan.
$50 lot
Inc.. corn., no par
234
of Kent Garage Investing Corp..
200 Prints-Biederman Co., no par$125 lot $10,000 Bethlehem
1931, and subs. coup. attached- - 131
Pub..
Inc..
June
17
1931
100 Waverly Oil Works Co., cl A,
51.000
lot
$85
Texas Tract. lot mt. Is, 1937
notes,
gold
cony.
due Jan. 1
0%
$29,975 ctfs. of indebt. of the Park
no par
Jan. 1931, and subs. COUP. at$110 lot
1935: Jan. 1927, & subs. coup.
Ave.39th St. Corp
50 Penn-Federal Corp., 7% corn.
tached
25 lot
attached; 100 corn., no par;
2%
$10,000
ctfs. of indebt. of the Park
pref
56.000 34th Street Crosstown Ry.
(claim for 50 sin. Bethlehem
85 lot
Ave.39th St. Corp
25 Amer. Window Glass Co., 7%
let mt. 55, April 1 1996, ctfs. of
$15 lot
Pub., Inc., corn. unissued. no
$10,000
ctfs.
of
indebt. of the Park
pref
Sep.
$70 lot
par
10%
5100 lot
Ave.39th St. Corp
300 Pittsburgh Thrift & Loan Corp.
lot $10,000 23rd St. Ry., ref. & imp.
1,833 32-100th Tabs Mines, Inc.,
21,000 Albany Ry. cons01. 55, Jam$5
par $10
5.9. Jan. 1 1962, Ws.of dep.
$100 lot
55; 125 El Paso Cotton Mills
Par
11
1930;
Jan. 1930. coup. attached._ 21
100 Bear Tractors, Inc
$2.000 Trenton St. Ry.. 1st mt. 55,
$3 lot
Co.: 250 Miami Giro Corp.. Pfd.,
$5.000 Albany Ry. gen. m. Is,
500 Burden Pictures. Inc., 1st pref.,
July 1 1938
no par; 100 Newfoundland-Labra18
June 1 1947: June 1930, and subs.
no par
55.000 Trappe & Limerick Elect. St.
$3 lot
dor Film Co.. Inc., pref., no par;
coupon attached
100 Internat.Power Co., Ltd., corn.
Ry., 1st mt. 436s, July 1 1931;
100 Newfoundland-Labrador Film
52,000
Athens
Term.
Co.
no par
lot
Jan.
m.
$130 lot
55,
1931. and subs. coup. atCo., Inc., corn., no par
$75 lot
1937
100 Edgewater Corp.
tached
25 lot Ctf. of int. of $1,960,784.31 in
2%
88,500 Berkshire St. Ry. lot m.6s, 234 $4,000
1.279 Middletown Coal Co., no
Troy City Ry., 1st con. mt.,
Mid-City Bldg. Syndicate
lot
550
extended
to
1937
Par
3
5s. 1942; April 1930, and subs.
$100 lot Chose in action for $120,000 & int.
89,000
Birdsboro
St. Ry. let m.Is,
20 Chipman & Co.,Inc., pref
coup. attached
$10 lot
against J. A. Haulm, together
1
1934; July 1931, & subs. coup.
125 Adair Oil Co., Par $10
$38,000 United Traction Co., Alwith int. If any,in all of the corn.
$6 lot
attached
250 Garner Print Works & Bleach4
bany,con. mt..4345, June 1 2004;
stock of Rivercrest Realty Corp..
$15.000
Bleecker St.& Fulton Ferry
ery, corn., no par
Dec. 1929, and subs, coup. at$40 lot
as coll, security therefor; demand
RR. let m. 4s, Jan. 1 1950,
1,100 Garner Print Works& Bleachtached
note of J. A. Barrios, dated
ctfs.
ery, corn., no par
242,000 Utica & Mohawk Valley 534
$110 lot
6
Dec. 14 1921, for $7,500 & int_ 450 lot 53,000 of deposit
Citizens Elec. St. Ry. 1st
$15,000 promissory notes of Turner
Ry., let mt. 4y4s, Sept. 1 1941;
100 Nat. City Bk.of New Rochelle,
m. 6s, extended to July 1 1934.
Associates, Inc., dated from Nov.
March 1930, and subs, coup. atpar $20
25
(51,000 bonds and $2,000 etfs.
9 1923 to Nov. 141924;60 Turner
tached. ($35,000 bonds & $7,000
$7,700 Law & Finance Bldg. gen.
of deposit)
Associates, Inc.
ctfs. of Sep.)
$750 lot
33.4
mtge. 6%s; MO Cont. Metro&
131
$14,000
Detroit
.St
Pt.
215,000 promissory notes of Turner
Huron
Shore
224.000 Utica Belt Line St. I.
Corp., cl. A, no par; 200 Metrop.
Line Ry. 1st m.Is, due June 1950
Associates, Inc., dated from Nov.
Co., 1st mt.6s, Nov. 1 1539; ry
Bankshares Corp. cl. A, no par:
Ctfs.
of
deposit
2 1923 to Nov. 14 1924;50 Turner
1930,
134
and subs, coup. attached.
308 Tropical Isl. Corp
2200 lo
$21,000 Dot., Ypsilanti, Ann Arbor
Associates, Inc
($20,000 bonds and 54,000 ctfs.
$750 lot 800 Leonard Narrow Lake Mines,
& Jackson Ry. Co.. 1st m. Is,
522.500 promissory notes of Turner
of dep.)
Ltd., par El; 900 Burnside Oil
31
1926,
ate.
of
deposit
Associates, Inc., dated from Nov.
$64,500
334
Jacksonville, Fla., Tract.,
Co., par 51; 1,000 Benezuela
$2,000 Eastern Mich. Ry., let coll.
2 1923 to Nov. 17 1924; 75 Turner
1st mt., 58, March 1 1931. (559,Syndicate, Inc., par $2
$55 lot
75, July 1 1958
Associates, Inc.
$1.125 lot 1,900 Foremost Dairy Prods., Inc..
500 bond and $5,000 Ws,of dep.) 1034
1534
$6,200 Eastern Mich. Toledo RR.,
$15,000 promissory notes of Turner
$58,000 Rochester & Syracuse R. R.
cony., no par; 52,500 Leonard
gen• m. bonds, due July 1 1958:
Associates, Inc., dated from Nov.
lot mt. Is, May 1 1957, ctfs. of
Larrow Lake Mines, Ltd., par $1;
July 1930, Sc subs, coup. attached 331
7 1923 to Nov. 151924;50 Turner
Sep.
203-150,000 trust Ws.of Pittsburgh
312.000
Ft.
Dodge Des Moines &
Associates, Inc
$67,000 Syracuse, Lake Shore &
$750 lot
Trust Co., liquidating trustee for
Southern RR. Co. let m. Is,
$15,000 promissory notes of Turner
Nor. R.R., let mt., Is. May 1
the Forest Oil Co.; 50 Fort Pitt
due 1938
Associates, Inc., dated from Nov.
1947, ctfs, of dep.
1136
Real Estate Co., par $50: 1,193
31
517,000 Galv. Houston Eke Ry.
2 1923 to Nov. 19 1924
$39,000 Syracuse Rapid Transit Ry.
$750 lot
Mineral Earth Corp., v. t. 0.. no
1st m. 5s, 1954
$15,000 promissory notes of Turner
let mt., Is, due March 1 1946:
20
par; 13,365 Burnside Oil Co.,
$22,500
Grand
Rapids
Associates, Inc., dated from Nov.
Ry. Co. let
March 1 1946; March, 1930 and
par 51; 2.300 Southwest Dairy
m. 78, 1939; Nov. 1931 & subs.
2 1923 to Nov. 5 1924; 50 Turner
subs, coup. attached
Products Co., no par; 687 5-10
631
coupons attached
Associates, Inc.
$750 lot
Taboo Mines, Inc.. P&C $5
34 $5,000 Kentucky Fuel Gas Corp.
$400
lot
$2.000
Indianan.
& Northw.
27,500 promissory notes of Turner
. Tract.
6368,ser. A, 1942
1,623 Southwest Dairy Products
20
1st Is. March 1933. ctfs. of dep
Associates. Inc., dated from Nov.
234 $42,000 demand notes of MadisonCo., corn., no par; 41 Sleeper
$2,000 Internat. By., Buffalo,
2 1923 to Nov. 17 1924; 25 Turner
Eighty-Eighth St. Corp., dated
Radio Corp., corn. v. t. c., no
N. Y., ref. & imp. m. 55, 1962_ _ 28
Associates. Inc.
$375 lot
from Sept. 4 1930 to May 24
par; 10,000 Western Utah Copper
$7,000 Jacksonville, Fla., Tract. let
$15,000 promissory notes of Turner
1931
Co.. par $1; 190 Southwest Dairy
$100 lot
con.
mtge.
Associates. Inc., datedfrom Nov.
Is,
due
March 11931.
$12,000 note of the Lombard
Products Co., pref., par $100_ _2150 lot
($6,000_bonds and $1,000 ctfs. of
2 1923 to Nov. 20 1924;50 Turner
200 Globe Financial Corp., pref.;
Tractor & Truck Corp. ser. B,
dep.)
$750 lot
Associates, Inc.
100 com
11
No. 53, due and payable Sept 1
825
27,500 promissory notes of Turner
510 Internat.-Madison Bank & lot $7,100 Jacksonville, Fla., Tract.5%
1932
$1.900 lot
notes, Sept. 1 1935
Associates, Inc., dated from Nov.
Trust Co., par $25
31 55,000 Outline Sales Corp.. 7% gold
$75 lot $1,000 Kanawha Valley Tract. 1st
3 1923 to Nov. 171924;25 Turner
3,000 Union Financial Corp. of
notes, due Oct. 1 1927; April and
mtge. Is, Jan. 1 1946
Associates, Inc.
$375 lot
Amer., class B. no par
2
Oct. 1927, coup. attached
$75 lot
$50 lot 5117,000 K. C.. Clay Co.
$22,500 promissory notes of Turner
10 Mountain's Nat. Bank (of Tan& St. Jos$9,500 demand note of Herbert
eph Ry. Co. let mt. 5s, due Sept.
Associates, Inc., dated from Nov.
nersville. N. Y.)
Lewis, dated Nov. 24 1924, Int.
$10
lot
1 1941; Sept. 1030, and subs.
2 1923 to Sept. 13 1924
$1.1251ot 50 Burlington Securities Corp_
6%. without recourse
$100 lot
_$l5 lot
coup. attached
One certificate of proprietary in220,000 demand note of Howard E.
31 $100,000 note of Owen Land Co..
$10,000 La. & Northwestern Ry.
terest in the Seminole Golf Club
White, dated July 30 1925, with
dated May 23 1925, due May 23
Co., let mtge. 58, 1935
of Fla., no par
$20 lot
19
int.; without recourse; 225,000
1929, int. 5%; on which sum int.
$12,500 Lebanon Valley St. Ry. let
50 Ga. Southern & Fla. Ry., com _250 lot
demand note of Howard E.
to April 1 1926. has been paid,
M. 1929, defaulted
Loos Henry Klein & Co., Inc., Par436
White, dated Aug. 3 1925, with
Without resource; $37,380 note of
$5,000 Mass. & Northeastern St.
tin. pref., par $20: 20 10-100th
int., without recourse
Owen Land Co.. dated April 9
lot
$75
Ry.
let
&
ref.
mt. 55, July 11934,
corn., no par
$250 lot 3.000 Calif. Crushed Fruit Corp.,
1927, due April 9 1928, int. 5%;
ctfs, of dep.
1,050 C. E. Stone Co., corn., no
16
pref., par 510; 1.363 corn.. no
without recourse; unsecured claim
$2,000 N.Y.& Stamford Ry. 1st &
par
550 lot
for $57,620 against Owen Land
Par; 1,062 Mission Dry Corp.,
ref.
4s,
Nov.
1 1958
1,700 Prudence Co. of Del., Inc.,
4
Ltd., pref., par $10; 483 corn.,
Co
$200101
$7,000 N. Y. State Rye., 1st con.
pref., no par
$340 lot
DO par
$5.000 Book Bldg. & Addition 6s of
52.750 lot
434s, Nov. 1 1962; Nov. 1929,
200 Transportation Insurance Co.
1,000 Amer. Whaling Co., no par $110 lot
40, Sept. 16 '31. coup. attached
4
and
subs, coup. attached
of N. Y., par $10
5
200 Olympic Forest Prods. Co.,
134 $5,000 Kesner Props.68 of 1939_ _
3
100 Sodamat Corp.. no par
$75 lot
pref., no par; 400 corn. v. t. c.,
By
R.'L. Day & Co., Boston:
2,000 Cotter Butte Mines, Inc.,
no par; $407.25 ctfs. of indebt.,
510 lot
Par 21
non-Interest bearing
Shares. Stocks.
$2,400 lot
$ per Sh. Shares. Stocks.
$ per Sh.
200 Sodamat Corp.. no par
$200 lot Ctf. of indebt. of Park Ave.-39th
550 Nat, Shawmut Bk, par $25 2436ex-d 30 Kleshun
Ranch, Ltd
26 lot
1,000 Cotter Butte Mines, Inc.,
St. Corp. Issued to Harry C.
265 Nat. Shawmut Bk, par 225 24 ex-div. 200 New England Drawn
Steel, pref. 20
$5 lot
Oppenheimer under date of Nov.
Dar 51
100 Nat. Shawmut Bk, par $25 24 ex-div. 890
Amer. Trustee Share Corp.
200 Sodamat Corp.. no par
5260 lot
18 '31, in the sum of $14,992.50_222 lot 200 Exchange Trust Co
90
Diversif'd
Trustee Sh's, Ser. C-$2.55
5,000 corn. stk. purch. warr. of the
108 Albion Corp., no par
$1 lot 60 U. S. Tr. Co.. par $25____20-2031 300 Mass. Pow. & Light AssociateS,
White Sewing Mach. Corp..
50 Clifton Paper Mills, pref
$100 lot 200 Exchange Trust Co
90
82 preferred
19
no par
$2$ lot 7,000 Unity Gold Mines Co.,
400 Exchange Trust Co
90
1,000 Mass. Pow. & Lt. Assoc.,
1,700 Leach Corp., corn. v. t. 0., no
Par $5
$50 lot 25 Boulevard Tr. Co., Brookline,
common,
w.
w
2
par
$100 lot 500 Overman Cushion Tire Co.,
par $10
21
1.500 Rockland Light & Power Co.
100 Leach Corp. corn. V. t. c., no par$5 lot
Inc., corn. A (no par; 50 pref.,
14 I.udlow Mfg. Associates
60
V. t. c., par $10
934
40 1070 First Ave., Inc., no par_ -225 lot
no par
$0
Lancaster Mills, pref
$35 lot
234 850 Bowman Biltmore Hotels Corp.
118 Rail Joint Reforming Co.
2 Wandsworth Corp., cora, no par_21 lot 18 Naunikeag Steam Cotton Co
50
2d preferred
750.
(Del.) pref
855 lot 150 Wandsworth Corp., com, no
25 Merrimack Mfg. Co.. corn
334 425 Bowman-Biltmore Hotels Corp.
Reforming
800 Rail Joint
Co.
par
$1 lot 100 Naumkeag Steam Cotton Co- 50
1st preferred
234
(Tenn.) corn., no par
$50 lot 260 Wandsworth Corp., corn, no
48 Sulloway Mills
16
20 Bowman-Biltmore Hotels Corp.
862-3% of all the right, Mal &
par
$1 lot 70 Ludlow Mfg. Associates
60
1st preferred
234
Int. of John H. Carpenter In and
350 Wandsworth Corp., corn., no
15 Newmarket Mfg. Co
5
1
Boston
Athenaeum, par $300--500
to all prop. & assets held by the
par
51 lot 200 Ludlow Mfg. Associates
60
400 Brockton Gas-Light v. I. c.,
syndicate known as the Lincoln
60 Wandsworth Corp.. corn. no par_81 lot 63 Villanova Worsted Co
$10 lot
par $25
20
Bldg. Syndicate formed under
600 Worcester Cons. Bt. Ry. 1st Pf.
20 Eaton Crane & Pike preferred_
60
agreement dated May 17 1928_250 lot
Bonds.
par $80
Per Cent.
$30 lot 70 Forbes & Wallace,
13 1-3% of all the right, title &
$50,000 Berkeley-Carteret Hotel
100 Norwich & Worcester RR. prf 100 100 Farms Co. class A Inc., pref. A_ 20
5
int. of John H. Carpenter (asCo. 634% mtge. bonds, series B,
105 Worcester Cons. St. By. 1st pf.,
150 Penn Seaboard Steel Corp
$1 lot
signed to Ralph Horton) in & to
due Jan.1 1940;Jan. 1926 & subs.
par $80
$20 lot 25 Robert Gair & Co. A
231
all prop. & assets held by the
coup, attached:stock porch. war50 Holyoke St. Ry. Co
lot
$5
10 Old Colony Trust Assoc_ A3 ex-div.
Syndicate known as the Lincoln
rants attached
8400 lot 552 Peterson & Neville. Inc
26 lot 150 Acme Knitting Machine &
Bldg. Syndicate, formed under
$1.700 Eastern Michigan Rys.
57 Universal Safety Tread, 1st pf..$1 lot
Needle
Co
16
agreement dated May 17 1928_ _235 lot
mtge. 6s, 1958, Oct. 1929 coup.:
80 Baush Machine Tool Co., cons.:
60 Amer. Elec. Share Co
10
250 Brief English Systems, Inc.,
stamped 22 paid
100 preferred
810 lot
$550 lot 104 Federal P.& L. Co.. par $50._ _ 30
8% cum. pref.; 1,667 corn.,
$1,000,000 15-yr. inc. debs. 68 of
550 Baush Machine Tool Co., com100 Electric Shovel Coal Corp. $4
Par El
Newport Securities Corp_ _2100,000 lot
815 lot
mon
21,200 lot
cum. preferred
1
27 United Light & Power Co., corn_ 40
572,000 19 Grace Court 10-yr. debs.
20 Serelco Products Corp., pref.,
87 Real Estate Associates
$200 lot
100 Spruce Logs, Inc.. no par
$5 lot
par $25; 120 common
75. 1937
$1,750
$10 lot 62 Boston Block Trust
lot
225 Times Sq. Tr. Co., par 520_ __$21 lot $38.400 Ingenio Santa Cecilia, S. A.. lot 10 Now England
$75
Southern Corp..
50 Winona Copper Co., par $25_ _ _25 lot
300 Plastic Stone Prods. Corp..
common
let mtge. 68, June 30 1944_ _81,920 lot
11c. lot 50 Public Util. Cons,Corp. 7% pf.815 lot
no par
$10 lot $2,400 Ingenio Santa Cecilia, S. A.,
1,925 Shawmut Bank Inv. Trust___ 134 400 Bankers
Mtge. & Inv. CO..
250 Art Cinema Corp., corn., no
1st mtge. 68, June 30 1944_ _ _.$120 lot 20 Haverhill Elec. Co., par $25-- 3234
Boston, par $25
226 lot
Par; 1007% cum. pref
$100 lot 519.900 Ctfs. of indebt. of Park
100 Terminal Hotel Trust
$15 lot 5 Saco Lowell Shops, 2d pref
5
748 Cont. Kirkland Mines, Ltd.,
Ave. 39th St. Corp., dated
75 Kenmore Terminal
$5 lot 10 Saco Lowell Shops, corn
1
par $1
lot
units Thompson's Spa, Inc
Nov. 18 1931
$6
lot
50
555
35
975 T.J. Holmes & Co., Inc., cow,
40 Theater Realty Co. of Stamford,
$9,995 Ctfs. of indebt. of Park
10 New England Southern Corp,
900 Quincy Mining Co.. par $25
Inc., pref., par 550; 20 corn.,
Ave. 39th St. Corp., dated
corn.; 50 Tropical Products Co..
212.000 lot
160 par
$15 lot
Nov. 18 1031
20 Boston Mfg. Co., pref
$35 lot
$5 lot 1 Plymouth Cordage Co
4751
DEC. 26 1931.]
$ per Sh.
Shares. Stocks.
250 R. D.Thomson, Inc.. cap. stk.$1 lot
60 Gateway Restaurants, Inc. 8%
$1 lot
pref.; 50 common
100 New England Wood Flour Mills
1
Inc
8
4 units First Peoples Trust
2 Bowman-Biltmore Hotels Corp.,
2
1st pref
100 Bowman Biltmore Hotels Corp.,
1
2nd pref
100 Bow. Biltmore Hotels Corp.,
50c.
common
100 units Boston Acceptance Co.,
1
Inc
30c.
100 Charles Hudson. Inc, cl. A
70 E. A. Canalizo Co., prof: 21 E.
A. Canalizo Co., corn: 70 CarterMacey Co., com.: 7 Pilgrim Export & Inapt. Co., corn.; 1,500
$90 lot
Santrander Nay. Co
150 F. L. Putnam & Co., cony. p1.;
$l lot
6236 common
5-7
50 Saco Lowell Shops 2nd pref
Co.,
corn.,
Locke
Safety
Auto
100
$5101
par $10
77 Alex. Hamilton Inv. Corp., cl.
$2501ot
A
250 Cons. Chain Stores Corp., pf _ _ 831
600 Portland Gold Min. Co.,par $1 $10 lot
1,000 Columbia Emerald Dev.
$13 lot
Corp., par 85
3,200 Boston Wyoming 011 Co..
85101
par $1
8,500 Rey Mines Co.of Ariz., par81$50lot
50 Kidder Peabody Acceptance pref A15
30 Kidder Panic., Inc., pf. No. 1_ 15
FINANCIAL CHRONICLE
per Sh.
Shares Stocks.
25 Sandalari Co., com.: 25 pref__ _850 lot
2 Richmond Waterfront Realty
Corp., common
$5 lot
Per Cent.
Bonds$10.000 Cent. Oregon Irrig. Co., 60
Jan. 1931, coup. Jan. 1913 de sub
on
$10 lot
$1,500 German Gov. Intl. 536s,
25 & int.
June 1965
$5,000 Bowm. BM. Hotels Corp.,
38 & int.
7s, Dec. 15 1934
$10,000 Detroit Ry. Harbor Term.
7s, May 1935 coupon Nov. 1928
& sub. on
8101ot
$5,000 Punta Alegre Sugar 6s, 1930 5 flat
10,000 Roubles of Russian Gov.
5368, Feb. 1926-War Loan Issue
1916
520 lot
8700 Rock IsId. & Sou. Ry. 1st 5s,
Jan. 1947
52 lot
$10,000 R.& Light Secs. Co., 45,
1952 III. Cent.stock int. ca. A $150 lot
$5,000 Ashville, N. C., 43gs, Nov.
1931
$25 flat
Note for $6,000 dated Boston, Aug.
II 1930, for 6 months signed by
George R. Jones
$10 lot
Note for $2,000 dated New York,
Oct. 1 1930, on demand, signed
by George R. Jones
$5 lot
Note for $36,168.55 on demand,
given by Peterson & Neville, Inc.,
to the order of W. K.Shaw dated
Boston, Mass., Dec. 18 1931.
lot. 5%
$100 lot
By Wise, Hobbs & Arnold, Boston:
Shares. Stocks.
$ per Sh.
Shares. Stocks.
$ Per Sh.
250 Cushion Petroleum
51101
48 All. Nat. Bank, Boston ex-div__ 22
593 New River Co., corn
$25 lot
53 Nat. Shawmut Bk., Boston ex75 Dewey & Almy Chem. Co., pref_ 16
24
div
24 Dewey & Almy Chem. Co.cl. A- 16
75 Atl. Nat. Bk. Boston ex-div___ _ 22
10 Indust. Clearing Corp., com____$1 lot
25 B.B.& R. Knight Corp. pref- 3
lot
$3 lot 191 Trent Process Corp
100 Boston Mfg. Co., pref
21 Assoc. Textile Cos. pref
$27 lot 42 units First Peoples Trust
60'Whitman Mills
$3 lot 100 Atlantic Public Util., class A _.$7$5
35 Quincy Mkt. Cold Stge. dr Ware50
10 Hamilton Woolen Co
house Co., corn
$3 lot
100 Boston Mfg. Co., pref
434
10 Assoc. Textile Cos. pref
$20 lot 35 Edison Electric Illum. Co
189
1036
100 Merrimack Mfg. Co., pre(_83.1-3,1-8 73 Elea Bond & Share Co.. corn
173 Vermont Asbestos Corp., 8%
105 West Point Mfg. Co., ex-div___ 35
pref
$20 lot
$1751ot
4 Pocassett Mtg. Co
4 Taber Mills
85 lot 400 Grosser Mtg. Co., class A _S17 lot
25,000 Oregon Copper Co
8
14 Southern Ry. Co., com
mf.
$1
.00 lot
3036 50,000 Bobby Anderson Group
10 N.Y. Cent. RR. Co., corn
Co. of Idaho
23
$40 lot
120 N.Y. N. H.& H.an. man
100 Chic.& Northw. Ry. Co., corn- 636 685 chain of Rocks Kings Highway
Bridge Co., corn., v. t. c
20
$2351ot
50Pennsylvania RR.Co
130 Boothby Co., 7% pref
23 Boston & Maine RR. p1. Cl. A
100 United Corp., corn
100
(unstamped)
836
50 Palo Alto Products Co.. pref.;
56 Boston dr Maine Kn. pf. cl A
150 com
100
(stamped)
$
40 Detroit Harb. Terms., Inc.,00 lot
10 Boston RR. Holding Co., prof__ 40
preference; 4 coin
$
46 Boston & Maine RR. pf. cl. C
25 Arvey Mfg. Co., 2d pref; 100 2 lot
100
(stamped)
class B
$10 lot
193 Holyoke Street Ry.Co
52 lot
19 Nashua Street Ry.. 7% pref.:
200 St. Louis-San Fran. Ry. pref__ 6
75 com
4
$
100 Chic. dr Gt. Western RR. pref_ 113
42 Mass. Brick Corp., pref.: 8 3 lot
100 No. Amer. Car Corp., corn_ _ _ 5
com.; 8200 1st mtge. 75, Nov.
200 Boston Herald-Traveler Corp__ .6
1929: $100 1st mtge. 7s, Nov.
50 Elec. Bond & Share Co., corn__ 10
1928; $100 let mtge. 75, Nov.
12 Lamson & Hubbard Corp., pref.. 22
1927
$ lot
400 Galveston Houston Elec. Co.,
32c 30 Pyrocolor Corp., pref.; 150 com.8153 lo
pref
50 F. H. Roberts Co., cl. C pref__ _$7 lot 75 Kidder Partic., Inc. No. I, corn.;
75 No.2 com.; 50 No.3 com___ _$13 lot
7,404 Parker Young Co., com_ _ _$110 lot
20 U. S. Bond dr Mtge. Corp. of
9
6 units First Peoples Trust
50
Mass., pref.: 25 Cons. capital
5 American Tissue Mills pref
Corp., pref.; 25 corn., cl. A; 25
200 Cons. Chain Stores Corp. pf.$175 lot
rights Cons. Capital Corp
$100 lot
1,551 Rockport Granite Co
$10 lot
22 50-100 British Empire steel
100
50 Collateral Loan Co
Corp., Ltd., 2d pref.; 10 com_ __ _$3 lot
3 units Selected Industries Inc_ _ _ _ 26
10 Amer. Tel. & Tel. Co
11634 75 Kidder Partic., Inc.. No. 1 com.:
75 No. 2 corn.; 100 No. 3 com_ _513 lot
100 Serve', Inc., com
531
8736 Arvey Mtg. Co., 2d pref.: 350
18
10 Johns-Manville Corp., com
corn., class B
425
1 Travelers Insurance Co
6 Eastern Mass. St. Ry., corn.;23
10 American Can Co., com
63
12-100 adj. stock
25 Hahn Dept.Stores Inc. cony. pf_ 16
,75 lot
52,750 Eastern Mich. Rys. ad). 68.
20 Amer. Locomotive Co., pref_. 36
due July 1958; 20 corn. v. t. c.,_..$5 lot
7
2 Graton & Knight Co., pref
510.000 note of Addle E. Kittredge,
100 Public Utility Holding Corp. of
%
dated Oct. 10 1925, due Oct. 10
America(with warrants)
1928
16c
300 Bansch Mach. Tool Co., corn
$10 lot
35 Amer. Locomotive Co., Pref-- 360 $350.000 Hill Trust notes dated
Oct. 25 1926(29%
30 Johns-Manville Corp., corn_ _ _ 18
100 lot
1928,
25
291 Bausch Mach. Tool Co., corn.. 16c 537,100 note dated Feb.
paid)3
due Feb. 25 1033. with int. at
84
50 Eastman Kodak Co., corn
6% payable semi-annually of the
36
50 United Shoe Mach. Corp., com
Coral Gables Corp
120 Air Investors Inc., cony. p1d.,
$15 lot
(with warrants)
331
Baragua
,0ofo
nds$86
500
1 Boston Athenaeum
Per Cent.
Sugar Co., 7368.
500 Rainbow Luminous Prods. Co..
July 15 1937 (dep. receipt)_ _5% flat
8c
class A com
$100,000 Assoc. Motor Indus.. Inc..
10 units Thompson's Spa, Inc..
3331 1st mtge. 736s, due July 1932
ex-div
10
(ex-Jan. 1 & July 1 1932 coups.) _82 lot
100 American Re-Insur. Co
818,500 Assoc. Motor Indus., Inc..
500 Southern Cities Ut11. Co. $6
500
1st mtge. 736s. due July 1932
prior cum pref
(ex-Jan. 1 & July 1 coups.;$18,500
$2 lot
50R. H.Baker Co., Inc., com
coll. trust 735% notes due July
50 American Utilities & General
1932
1
Corp.,83 pref
$
$2,000 Republic of Mexico series A. 2 lot
100 Whittelsey 511g. Co., Inc.,
5s, dated 1899
$1.25 lot
COM
f
.10 lot
200 loser. Secure. Co., Inc., corn... 1.75 $10,000 Consol. Cement Corp. of
Chicago series A, tat a. 1. 636s,
50 units Davis Drug Stores Corp....$10 lot
5
due March 1941
BOO Beacon Panic. Inc., pref
536 $5,000 Punta Alegre Sugar Co., 61
50 Radio Corp., com
s%
, flat
Oct. 1930 (ctt. dep.)
9
67 Internat. Tel. & Tel. Co
1% flat
$7,000 Rio Grande Southern
200 Indust. Accept. Corp. let pf ___ 25
$1 lot
4s. due July 1940
50 Arcadia Cate Co
R11...&
850
' int.
By Barnes & Lofland, Philadelphia:
Shares. Stocks.
$ per Sh.
10 Phila. National Bank, par $20-- 52
5 First Nat. Bank of Merchantvine, N. J
1
32 Mt. Holly Nat.Bank, Mt.Holly,
N. J
$3 lot
100 Bank of Phila. & Trust Co.,
par 810
$1 lot
5 Lansdowne (Pa.) Bank & Trust
Co
20 United Security Life Ins. &
Trust Co., par $10
85 lot
85 Central Tr.& Say. Co., par $10_$3 lot
75 Central Tr.& Say. Co., par $10.$1 lot
100 Central Tr.& Say.Co., par 510.$3lot
100 Aldine Trust Co., par $10____$1 lot
$1 lot
50 Aldine Trust Co., par $10
160 Aldine Trust Co., par $10_.$1 lot
80 Pa. Co. for Ins. on Lives. &c.,
30
par 510
50 County Trust Co. of Phila.,
$1 lot
par $10
Shares -Stocks.
$ per Sh.
125 Plaza Trust Co., par $10____$1 lot
25 Broadway Merchants Tr. Co..
Camden, N.J
1
8 Merchantylne (N. J.) Tr. Co._ 1
80 Moorestown (N. J.) Tr. Co__ 1
60 Morrestown (N. J.) Tr. Co_ ___ I
10 Merlon Title dr Trust Co.,
Ardmore, Pa
$ lot
S41 2
0 Securities Guaranty Corp
102 Empire Public Service Corp.,
common A, no par
34
109 Intercontinents Power Co,
common, no par
$
60 Intercontinents Power Co., pref. 2 lot
lot
no
Bond & Shares Co..
100 Federal
par"
$30 lot
common, no oar
100 Bedford Johnson Co., Inc____ 10
100 Bedford Johnson Co.. Inc_
10
40 Baxter Laundry Co., corn. A_.$1 lot
12 Fire Assoc. of Phila.. par $10.
7
Shares. Stocks.
$ per Sh.
35 40-100 U. S. Acceptance Corp.,
COMMOD
$1 lot
26 U. S. Acceptance Corp., corn..
voting trust certificate
$11 lot
50 Excess Insur. Co., par $5
$60 lot
100 Investment Bond de Securities
Corp., common, par $50
33
554 Garland Mfg. Co., flint prof.,
.14"
par S50
36
5 Finance Corp. of Amer.. pref
36
3 Finance Corp. of Amer., corn
50 Southern Ry. Co.. M & 0. cert. 15
61 Reynolds Investing Co.. pref_ _$20 lot
50 Crown Corp
$2 lot
25 Duff-Brown Chevrolet Co.,com_240
500 Idaho Copper Co., Inc., Dar 81
36
36
500 General Mines Corp., par $1_
50 Root Ref. Co., common
$1 lot
173 Precision Grinding Wheel Co.,
preferred
5
199 Precision Grinding Wheel Co..
common A, no Par
1
311 Precision Grinding Wheel Co.,
common B, no par
1
1
142 Penn Rivet Corp., common
50 Eddington Lumber & Supply
Co., common
59 lot
30 Southern Sugar Co., pref., cert.
of deposit; 54 common certif. of
$15 lot
deposit
100 13th & 15th Streets Pass. Ry
78
32 Coatesville Trust Co
$15 lot
60 Coatesville Trust Co
$25 lot
100 Bankers Trust Co
$2 lot
20 Bankers Trust Co
$1 lot
4281
Shares. Stocks.
Per733.
40 units Strauss Investing Corp__ 1
38 Nat. Brands, Inc., Del., COM. A_84 lot
10 Union Bank & Trust Co
$1 lot
6 Union Bank & Trust Co
$1 lot
10 Northern Central Trust Co..
75o.
25 Rocklin' Coal & Iron Co., pref_51 lot
6,000 Compania Americana De
log
Construcciones Y. Paviementos
par $44, Argentine gold pesos- 10o.
100 Contin.-Equitable Title & Tr_ 6
25 Lukens Gulf Cypress Co
$5 lot
58 Franklin Trust Co
59Alot
Bonds,
Per Cent.
$5,000 Wayne Coal Co., certif. of
deposit, dated Oct. 28 1924_445 lot
$5,000 Maher Collieries, 1st mtge. VAI
(iris, 1937, certif. of deposit_ 54 lot
$500 Tredyffrin County Club.
debenture
$160 lot
$60,000 John Bahley Iron Works,
1st 55, March 1932
$200 lot
$5,000 Southern Natural Gas Corp..
cony. deb. 6s, 1944
335
$1,000 Seaboard Air Line Ry.. 1st
mtge.6s, 1945, certif. of deposit_amos
$3,000 Elks Bldg., Louisville, Ky.,
1st 636s, 1938, certif. of deposit- 15
$5,000 Central Medical Bldg., 181
6368, 1934, certif. of deposit
10
$10,000 The Barbizon (Lexington
Ave. & 63rd St. Corp.) let Gs
1939, certif. of deposit
15
$20,000 President Hotel Co., 25Year incomes, May I 1955.-560 lot
DIVIDENDS.
Dividends are grouped in two separate tables. In the
first we bring together all the dividends announced the
current week. Then we follow with a second table, in
which we show the dividends previously announced, but
which have not yet been paid.
The dividends announced this week are:
Name of Company.
Railroads (Steam).
Chicago Great Western, preferred
Detroit Hillsdale de Southwestern
Georgia RR & Banking (quar.)
Hudson Sc Manhattan, prof
Joliet & Chicago (guar.)
Norfolk & Western, ad). pref. (quar.)-Rich. Fred. & Potomac, com. voting
Common (non-voting)
Dividend obligations
Toronto Hamilton & Buffalo
Tunnel RR. of St. Louis
When
Per
Cent. Payable.
Books Closed.
Days Inclusive.
h50c. Jan. 20 Holders of rec. Jan.' 76
Jan, 5 Holders of rec. Dec. uki
2
*231 Jan. 15 *Holders of rec. Jan. I
*236 Feb. 15 *Holders of rec. Feb. 1
134 Jan. 4 Holders of rec. Dee. 26a
I
Feb. 19 Holders of rec. Jan. 30a
*3
Dee. 31 *Holders of rec. Dec. 19
Dec. 31 *Holders of rec. Dec. 19
*4
Dec. 31 *Holders of rec. Dec. 19
*4
Dec. 31 *Holders of rec. Dec. 28
*3
Jan. 1 *Holders of rec. Dec. 31
*3
Public Utilities.
American States Public Service, class A -Dlvi dend ac (ion deferred.
*51.50 Jan. 1 *Holders of rec. Dec. 23
Preferred (guar.)
Appalachian Gas, $7 pref. A-Dividend °mitt ed
Arkansas Power & Light, 57 pref. (qu.)_ 51.75 Jan. 2 Holders of rec. Dec. 15
51.50 Jan. 2 Holders of rec. Dec. 15
$6 preferred (guar.)
(x) Feb. 1 Holders of rec. Dec. 30
Associated Gas & Elm. d. A (guar.)._
Feb. 1 Holders of rec. Dec. 30
or
41
(cash
1-70
sit.
85
pf.)
84 Pr. (qu.)
*8736c Jan. 2 *Holders of rec. Nov.30
Original preferred (quar.)
*51.75 Jan. 2 *Holders of rec. Nov.30
$7 preferred (quar.)
* 51.625 Jan. 2 *Holders of rec. Nov.30
$6.50 preferred (quar.)
*51.50 Jan. 2 *Holders of rec. Nov.30
$6 preferred (guar.)
*z$1 Feb. 1 "Holders of rec. Jan. 30
$4 preferred (quar.)
"$1.50 Jan.1 2 *Holders of rec. Dec. 22
Battle Creek Gas. 56 pref.(guar.)
Brit. Col. El.Power & Gas,6% Pf.(qu.) •136 Jan.i 1 *Holders of rec. Dec. 19
"51.50 Jan. 10 *Holders of rec. Dec. 31
Brooklyn Borough Gas, com. (quar.)
*750. Jan. 2 *Holders of rec. Dec. 21
6% participating pref. (guar.)
*631e. Jan. 2 *Holders of rec. Dec. 21
6% participating pref. (extra)
Jan. 15 Holders of rec. Dec. 31a
Brooklyn-Manhattan Transit, com.(qu.) $1
Central Electric Co., common-Dividen d omit ted
Central Hudson Gas & El., corn (qu.).. *20c. Feb. 1 *Holders of rec. Dec. 31
*81.30 Jan. 1 *Itolders of rec. Dec. 19
Preferred (guar.)
Central Massachusetts Power, pref
*84.50 Dec. 22 *Holders of rec. Dee. 15
1.ti Jan. 15 Holders of rec. Dec. 31
Central Power Co., 7% pref.(quar.)_
136 Jan. 15 Holders of rec. Dec. 31
6% preferred (quar.)
Central Public Service, $7 pref.-Divi dend o mitted
*3735c Jan. 15 *Holders of rec. Jan. 8
Chester & Philadelphia RS.(guar.)_
Cincinnati Gas & Electric, pref.(quer.). *134 Jan. 2 *Holders of rec. Dec.'15
CM.Newp.& Coy,Lt. & Tr., corn.(qu.) *51.50 Jan. 15 *Holders of rec. Dec. 31
* $1.125 Jan.' 15 *Holders of rec. Dec. 31
Preferred (quar.)
Jan. 15 *Holders of rec. Dec. 31
Consolidated Traction of New Jersey... *2
*25c. Feb. 1 *Holders of rec. Jan. 9
ElectricPower & Light, com.(quar.)
English Elec. Co. of Canada, cl. A (qu.) *75c. Jan. 15 *Holders of rec. Dec. 31
Federal Water Service$7 pref., $6.50 pref. and $4 pref.-Divl dends omitted
Foreign Power Securities, 6% pref.(cm.) 136 Feb. 15 Holders of rec. Jan. 31
Jan. 15 *Holders of rec. Dec. 31
*4
Gardner Electric Light, common
"234 Dec. 31 *Holders of rec. Dec. 18
Preferred
Jan. 2 Holders of rec. Dec. 15
51.50
Gulf Power, $6 preferred (guar.)
Home Tel. & Tel. (Ft. Wayne)Jan. 2 *Holders of rec. Dec. 20
*131
Preferred
(quar.)
7%
Houston Natural Gas, 7% pref. (quar.) *87,6c Dec. 31 *Holders of rec. Dec. 19
International Ocean Teleg. (quar.)
"1;3 Jan. 2 *Holders of rec. Dec. 31
"1 ,,,.1 Jan. 1 *Holders of rec. Dec. 16
Iowa Electric. 7% prof. A (quar.)
*1(A Jan. 1 *Holders of rec. Dec. 15
634% preferred B (quer.)
*51.75 Jan. 2 "Holders of rec. Dec. 19
Kansas Power, $7 pref. (quar.)
$6 preferred (guar.)
*$1.50 Jan. 2 *Holders of rec. Dec. 19
Kentucky Utilities, pref. (quar.)
*136 Jan. 15 *Holders of rec. Dec. 26
Jan. 10 *Holders of rec. Dec. 31
Lincoln Telep. Securities, class A (quar.)
"25c. Jan. 10 *Holders of rec. Dec. 31
Class B (quar.)
•136 Jan. 10 *Holders of rec. Dec. 31
Preferred (quar.)
Lynn Gas & Electric (quar.)
"51.50 Dec. 31 *Holders of rec. Deo. 21
Massachusetts Lighting Cos., com.(qu.) *75e. Dec. 31 *Holders of rec. Dec. 31
Jan. 15 *Holders of rec. Dec. 26
*2
8% preferred (quar.)
*13,6 Jan. 15 *Holders of rec. Dec. 28
6% preferred (quar.)
15c. Jan. 15 Holders of rec. Dec. 31
Memphis Natural Gas, com. (quar.)
Metropolitan Gas & Elec. (guar.)
*73c Jan. 1 *Holders of rec. Dec. 17
Milwaukee Elec. Ry.& Light, pref.(qu.) 134 Feb. 1 Holders of rec. Jan. 200
Missouri River Sioux City Bridge$1.75 Jan. 15 Holders of rec. Dec.
Preferred (quar.)
31rs
'25c. Jan. 2 *Holde of rec. Dec. 14
Montana & Power Co. (quar.)
Montreal L. H. & P. Como'.(quar.)
38e. Jan. 31 Holders of rec. Dec. 31
80c. Jan. 15 Jan. 1 to Jan. 15
Montreal Telegraph (quar.)
Municipal Service Corp., corn.(quar.)
*38c. Jan. 1 *Holders of rec. Dec. 15
"500. Jan. 15 *Holders of rec. Dee. 15
Common (extra)
National Power .8 Light, $6 pref.(quar.) $1.50 Feb. 1 Holders of rec. Jan. 9
Jan. 2 *Holders of rec. Dec. 16
*52
New Haven Water
New Orleans Public Service, pref. (qu.) 51.75 Jan. 2 Holders of rec. Dee. 21
*236 Jan. 15 *Holders of rec. Dec. 31
Northern N. Y. Telephone (guar.)
Dec. 31 Holders of rec. Dec. 29
2
Northwestern Bell Telep., corn.(qu.)
Ohio Cities Telephone, pref.(quar.)__._ *35c. Jan. I *Holders of rec. Dec. 20
Orange'8 Rockland Elec., 7% pre/.(qu.) *134 Jan. 2 *Holders of rec. Dec. 25
•136 Jan. 2 *Holders of rec. Dec. 25
ce
r.
.)1st
err
licedse
(rvia
reufb
pa6
croricpp
pref. (quar.)_ *323.5c Feb. 1 *Holders of rec. Jan. 15
*81.25 Feb. 1 "Holders of rec. Jan. 9
Philadelphia Electric Co., pf. (quar.)
•134 Jan. 9 *Holders of rec. Dec. 31
1 Piedmont & Northern Ky.(guar.)
*51.25 Jan. 2 *Holders of roe. Jan. 2
I Plainfield Union Water (guar.)
50c. Feb. 20 Holders of reC. Jan. 31)
I Power Corp. of Canada, Ltd., com.(qu.)
4282
Name of Company.
FINANCIAL CHRONICLE
Per
When
Cent. Payable.
Books Closed.
Days Inclusive.
Name of Company.
Public Utilities (Concluded).
Public Service of Colorado.
7% preferred (monthly)
58 1-3c Feb.
Holders of rec. Jan. 156
6% preferred (monthly)
50e. Feb.
Holders of rec. Jan. 15a
5% preferred (monthly)
41 2-3c Feb. 1 Holders of roe. Jan. 150
Public Serv.Corp.of N.J.,6% pf.(mthlY.)
50c. Jan. 30 Holders of rec. Jan. 2a
Shasta Water Co.. class A (quar.)
*37;50 Jan. 1 *Holders of rec. Dec. 17
Southern Calif. Edison, corn. (guar.)._ *50c. Feb. 15 *Holders of rec. Jan. 20
Southern Canada Power, com.(quar.)_
250. Feb. 15 Holders of rec. Jan. 30
Southern Counties Gas,6% pref.(q u.)_ _ 0,1y6 Jan. 15 *Holders of rec. Dec. 31
Southern Ind. Gas& Elec.,7% pf.(qu.)_
1311 Jan. 2 Holders of rec. Dec. 22
6% preferred (guar.)
13,6 Jan. 2 Holders of rec. Dec. 22
6% preferred (semi-annual)
3
Jan. 2 Holders of rec. Dec. 22
6.6% preferred (guar.)
1.65 Jan. 2 Holders of rec. Dec. 22
Stamford Gas & Electric (quar.)
Jan. 15 *Holders of rec. Dec. 31
Thirteenth & 15th Sta. Pass. Ry
*Holders of rec. Dec. 20
*36 Jan.
'Fri-State Tel. & Tel. (quar.)
*61.50 Jan.
*Holders of rec. Dec. 15
United Gas &Elec., preferred
234 Jan. 15 Holders of rec. Dec. 31
United Pow.& Lt. Corp.(Kan.),pf.(qu.) *11,4 Jan.
+Holders of rec. Dec. 18
U.S.Electric Power, pref.(guar.)
*1% Feb.
*Holders of rec. Jan. 2
West Va. Water Service, $6 pref.(qu.) *81.50 Jan.
'Holders of rec. Dec. 21
Western United Gas &
% pf.(qu.) *1% Jan. 2'Holders of rec. Dec. 17
6% preferred (guar.)
•1;1 Jan. 2 *Holders of rec. Dee. 17
Wisconsin Gas & El.,6% pf.ser.0 (qu.) •1;i Jan. 15 *Holders of rec. Dec. 31
Banks.
Jamaica National (quar.)
Peoples National(Brooklyn)(quar.)
.1%
3
Dec. 31 *Holders of rec. Dee. 20
Jan. 1 Holders of rec. Dee. 22
Joint Stock Land Bank.
Dallas (quar.)
*81
Jan.
1 *Holders of rec. Dec. 20
Miscellaneous.
Abstract Title & Mtge (Buffalo) (qu.)... *40e. Dec. 31 *Holders of rec. Dec. 19
Alabama Fuel & Iron (quar.)
Jan. 1 Holders of rec. Dee. 21
1
Altorfer Bros. Co., cony. pref.(qu.)
•75c. Jan. 30 *Holders of rec. Jan. 15
Amer. Asphalt Roofing, pref.(quar.) _ *2
Jan. 15 +Holders of rec. Dec. 31
American Factors (monthly)
*15c. Jan. 1 *Holders of rec. Dee. 31
American Home Prod. Corp.(mthly.)._
300 Feb. 1 Holders of rec. Jan. 14a
American Ice, corn. (quar.)
50c. Jan. 25 Holders of rec. Jan. 4
$1.50 Jan. 25 Holders of rec. Jan. 4
Preferred (quar.)
American Lace Mfg.. com.-Dividend pa ssed.
American News (bi-monthly)
50c. Jan. 15 Holders of rec. Jan. 5
Amer. Office Bldg.(Richmond),Pf.(Qu.) "1.55 Jan. 2 *Holders of rec. Dec. 23
American Screw, corn. (quar.)
*500. Jan. 2 *Holders of rec. Dec. 19
Amer.Title & Guar.(N.Y.)(quar.)-Di vidend omitted
Andre CitroenAm dep rots for B bearer shares
*30tr. Jan. 21 *Holders of rec. Jan. 14
Anglo-Norwegian Holdings, Ltd., pf__
% Dec. 31 Holders of rec. Dec. 24
Arrow-Hart & Hegeman Elec., com.,qu.) •40c. Jan. 1 *Holders of rec. Dec. 24
Preferred (quar.)
•1% Jan. 1 *Holders of rec. Dec. 24
Arundel Corp.(guar.)
75c. Jan. 2 Holders of rec. Dec. 21
Associates Invest. Co.,corn.(in com.stk) *15
Dec. 31 *Holders of rec. Dec. 21
Athol Mfg.(quar.)
*50c. Jan. 2 *Holders of rec. Dec. 26
Preferred
*374 Jan. 2 *Holders of rec. Dec. 26
Atlantic City Sewerage ((Vex.)
*25e. Jan. 2 *Holders of rec. Jan. 2
Atlas Acceptance. 151 pref.-Dividend action deferre d.
Atlas Thrift Plan. 7% pref.(guar.)
17;ic Jan. 2 Holders of rec. Dec. 24
Baer Sternberg & Cohen, lot pref. (au.) *1n Jan. 2 *Holders of rec. Dec. 24
•1% Jan. 2 *Holders of rec. Dee. 3
Bakelite Corp..06% pref. A (quar.)
7% preferred B (quar.)
'134 Jan. 2 Called for payt. Jan. 232
Bank Shares Corp., class A ,quar.)
+20c. Jan. 1 *Holders of rec. Dec. 19
Bastian Blessing Co.. corn.(quar.)
•25c. Jan. 15 *Holders of rec. Jan. 2
Beatty Bros., Ltd., com. A (quar.)
•25c. Feb. I *Holders of rec. Jan. 15
First preferred (quar.)
'134 Feb. 1 *Holders of rec. Jan. 15
Birmingham Mtge. Corp.. 7% pt.(qu.). *87;ic Jan. 1 *Holders of roe. Dec. 31
Bliss(E. W.) Co., 1st pref. (quer.)
$1
Jan. 2 Holders of rec. Dec. 21
Second preferred. class A (guar.)
- 87Sie Jan. 2 Holders of rec. Dec. 21
Second preferred class B (quar.)
100. Jan. 2 Holders of rec. Dec. 21
Boots Pure Drug*5 Jan. 7 *Holders of rec. Dec. 23
Am. dep. rag. for ord. reg
Boston Sand & Gravel, corn.(guar.).- - - •15o. Jan. 2 *Holders of rec. Doe. 22
Preferred (quar.)
"87.1,5c Jan. 2 *Holders of rec. Dec. 22
Bremer, Norris Realty Investments
5
Dec. 31 Holders of rec. Dec. 15
Briggs Manufacturing, com. (quar.)
25c. Jan. 25 Holders of rec. Jan. 110
British-American Tobacco, ord. (final)- - (o) Jan. 25 See note (o).
Ordinary (interim)
(o) Jan. 25 See note (o).
Broadway Dept. Stores, pref.(quar.)4.1,4
3 Feb. 1 *Holders of rec. Jan. 18
Brownell Company
•2e. Dec. 15 *Holders of rec. Dec. 5
Burkhart Mfg., preferred -Dividend ac Bon de terred.
Burco. Inc., pref.-Dividend deferred.
Burma Corp., Ltd., Am.dep.rcts
No) Feb. 20 *Holders of rec. Jan. 14
Business System, Ltd., pref. B (quar.).. *134 Dec. 31 *Holders of rec. Dec. 20
Calaveras Cement, pref.(guar.)
+151 Jan. 15 *Holders of rec. Dec. 31
California Consumers, $7 pref.(quar.)
*$1.75 Jan. 2 *Holders of rec. Dec. 15
California Group,6% pref.(qUar.)
•1% Jan. 1 *Holders of rec. Dec. 31
Cameron Machine, pref.(quar.)
+2
Dec. 31 *Holders of rec. Dec. 31
Canadian Bronze,corn.(quar.)
3134c. Feb. 1 Holders of rec. Jan. 20
Preferred (guar.)
131 Feb. I Holders of rec. Jan. 20
Canadian Fairbanks Morse,6% Pt.(qu.) *11.5 Jan. 15 *Holders of rec. Dec. 31
Canadian General Investment(quar.)._ •15c. Jan. 2 *Holders of rec. Dec. 15
Canadian Industries. Ltd.,com.(quar.) •62%c Jan. 30 *Holders of rec. Dec. 31
*1,4 Jan. 15 *Holders of rec. Dec. 31
Preferred (guar.)
*5 Jan. 2 *Holders of rec. Dec. 21
Case Lockwood & Brainard
*7 Jan. 2 *Holders of rec. Dec. 21
Extra
Century Electric Co., com.-No action taken.
Champion International, com.(quar.)_ •134 Jan. 2 *Holders of rec. Dec. 18
•1y, Jan. 2 *Holders of rec. Dec. 18
7% preferred (guar.)
Chapman Ice Cream (guar.)
4,18?..4o Jan. 15 *Holders of rec. Dec. 24
Charles Street Garage, 7% pf.(au.)---- •1X Jan. 2'Holders of rec. Dec. 26
Chicago Flexible Shaft-Div. omitted.
412.50 Jan. 2 *Holders of rec. Dec. 20
Chiquola Mfg., corn
6% preferred
*83 Jan. 2 *Holders of roe. Dec. 20
Cincinnati Wholesale Groc., pref. (qu.)_ '134 Jan. 15 *Holders of rec. Dec. 31
Cincinnati Wholesale Sup., pref. (qu.)
'134 Dec. 31 *Holders of rec. Dec. 30
*1ji Jan. 2 *Holders of rec. Dec. 22
Columbia Mills (quar.)
Columbian Vise &Mfg.(guar.)
+37,40 Jan. 2 *Holders of rec. Dec. 20
•25c. Jan. 2 *Holders of rec. Dec. 20
Extra
Comm. Discount (Los Angeles), PL(r111.) .20c. Jan. 10 *Holders of rec. Jan. 1
7% preferred (quar.)
•17Ac Jan. 10 •Holders of rec. Jan. 1
Jan. 15 *Holders of rec. Dec. 31
Consoi. Car Heating, Inc.(guar.)
•1
"75c. Dec. 19 *Holders of rec. Dec. 9
Consolidated Ice (Pittsb.) pref. (qu.)
Consolidated Lithographing, cl. A (qu.)_
50e. Jan. 2 Holders of roe. Dec. 23
'Sc. Jan. 25 *Holders of rec. Jan. 15
Consolidated Royalty Oil (quar.)
Corn Products Refs., corn.(quar.)
*75c. Jan. 20 *Holders of roe. Jan. 5
Preferred (quar.)
*U.1 Jan. 15 *Holders of rec. Jan. 5
Corporate Trust Shares
35c. Dec. 30 Holders of coupon No.6
Cottrell (C. B.) & Sons, 6% pf. (qu.)- - '134 Jan. 2
Cudahy Packing, common (quar.)
Jan. 15 Holders of rec. Jan. 50
$1
*1% Jan. 15 *Holders of rec. Dec. 31
Curtiss-Wright Export Corp., pf.(qu.)
Debenhams Securs., Ltd., pref.-Div. ac tion po stponed
De Haviland Aircraft*5 Jan. 8 *Holders of rec. Dec 24
Am.dep. rcts. for ord. shares
*5 Jan. 2 *Holders of rec. Dec. 14
Am. dep. rots. for ord. reg. shares-De Vilbiss Co., corn.(guar.)
+25c. Jan. 15 *Holders of rec. Dec. 31
7% preferred (quar.)
•17/je Jan. 15 *Holders of rec. Dec. 31
Diamond Elec. Mfg., 7% pref.(quer.).- •1% Dec. 26 *Holders of rec. Dec. 19
Diversified Utility Invest.. com. A (qu.L. +400. Jan. 1 +Holders of rec. Dec. 20
7% preferred (quar.)
+1?4 Jan. 1 *Holders of rec. Dec. 20
Dixon (Joseph) Crucible(quar.)
1
Dee. 31 Holders of rec. Dec. 21
Dotage & Shepard (quar.)
Jan. 2 *Holders of rec. Dec. 21
*El
Dominion Tar & Chemical, pref. (quar.) (.134 Feb. 1 *Holders of roe. Jan. 6
Driver-Harris Co., 7% pref.(quar.). *13,i Jan. 1 *Holders of rec. Dec. 21
Edwards(Wm.) Co.,6% pref.(quar.)
134 Jan. 1 Holders of rec. Dec. 206
7% preferred
Jan. 1 *Holders of rec. Dec. 20
Elgin Sweeper, 1st pref.(quar.)
*500. Dec. 31 *Holders of rec. Dec. 19
Cum. dividend pref.((Pm.)
*10e. Dec. 31 *Holders of rec. Dec. 19
Elwell parker Elec. Co.,com.-Div. pass ed.
Farr Alpaca (quar.)
*50e. Dec. 31 *Holders of rec. Dec. 21
Fidelity & Deposit Co.(Md.),((B)- - '82.25 Jan. 5 *Holders of rec. Dec. 28
Firestone Tire & Rubber, com. (quar.)_ *25c. Jan. 20 *Holders of rec. Jan. 5
First All Canadian Trustee Shares
*300. Dec. 31
[Vor.. 133.
Per
When
Cent. Payable.
Books Closed.
Days Inclusive.
Miscellaneous (Continued).
First Finance Co., Detroit cl. A (qu.)_ - 4.3730 Jan. 1 'Holders of rec. Dec. 19
Preferred (quar.)
*37r5o Jan. 1 'Holders of rec. Dec. 19
First Finance Co. of Iowa, cl. A (qu.)_ •373,5e Jan. 1 *Holders of rec. Dec. 20
Class A (extra)
*25e. Jan. 1 *Holders of rec. Dec. 20
Class B (quar.)
*373ic Jan. 1 *Holders of rec. Dec. 20
Preferred (guar.)
*373ic Jan. 1 *Holders of rec. Dee, 20
Flour Mills of Amer.,Inc. pref. A (qu.)
$1 Jan. 1 Holders of rec. Dec. 19,
Food Machinery, corn. (quar.)
25e. Jan. 15 Holders of rec. Dec. 3Ia
Galveston Wharf (monthly)
*50c. Dec. 15 *Holders of rec. Dec. 14
General Fireproofing, corn. (quar.)
"25c. Jan. 2 *Holders of rec. Dec. 19
Preferred (quar.)
'134 Jan. 2 *Holders of rec. Dec. 19
General Mach. Corp.,7% pref.(quar.)
•1M, Jan. 1 'Holders of rec. Dee. 21
Gilbert(A. C.) Co., pref.(quar.)
*8734c Jan. 2'Holders of rec. Dec. 19
Gildred Building Co., pref.(quar.)
'131 Jan. 1 +Holders of rec. Dec. 28
Gillette Safety Razor, pref. (guar.).- *81.25 Feb. 1 *Holders of rec. Jan. 5
Gimbel Bros., pref.(quar.)
131 Feb. 1 Holders of rec. Jan. 156
Globe Discount & Finance, corn. (qu.)_ _ *25c. Jan. 15 *Holders of rec. Dec. 31
Globe Grain & Milling,7% lot pf.(qu.)_
Jan. 2 *Holders of rec. Dec. 19
*50e. Jan. 2 *Holders of rec. Dec. 19
8% second preferred (quar.)
Gotham Silk Hosiery. prof.(quar.)
134 Feb. 1 Holders of rec. Jan. 86
Gold Dust Corp., corn.(quar.)
"623-0 Feb. 1 *Holders of rec. Jan. 9
*3
Grace (W. R.) & Co.,6% pref
Dec, 29 *Holders of rec. Doe. 28
Preferred A and B
Dec. 29 *Holders of rec. Dec. 28
•4
Gray & Dudley Co. com.-Dividends o milted
Great Lakes Transit,
'7% pref.(guar.).- "1% Jan. 2 *Holders of rec. Dec. 19
Griggs, Cooper & Co., pref. (quar.)
'131 Jan. I *Holders of rec. Jan. 1
Guar. Co. of North Amer.(guar.)
441.50 Jan. 15 *Holders of rec. Dec. 31
Extra
•$2.50 Jan. 15 *Holders of rec. Dec. 31
Gypsum Lime & Alab.Co.,com.-Div.o miffed
Hamilton Woolen
"E2 Jan. 15 *Holders of roe. Dec. 31
Extra
*$2.75 Jan. 15 *Holders of rec. Dec. 31
4.1x Jan. 1 *Holders of rec. Dec. 20
Hansen Glove, 7% pref.(quar.)
Harbauer Co., com.(guar.)
1230. Jan. 1 Holders of rec. Dec. 236
7% preferred (quar.)
•1)4 Jan. 1 *Holders of rec. Dee. 23
Hart & Cooley Co.(quar.)
*31.50 Dec. 31 *Holders of rec. Dec. 19
Hartford Connecticut Co., corn.(quar.)- •20c. Jan. 2 *Holders of rec. Dec. 21
Haughton Elevator & Mach., pref.(qu.) '134 Jan. 1 *Holders of rec. Dec. 20
Hershey Chocolate, com.(guar.)
$1.50 Feb. 15 Holders of rec. Jan. 254
Convertible preferred (guar.)
$1 Feb. 15 Holders of rec. Jan. 256
Convertible preferred (extra)
El Feb. 15 Holders of rec. Jan. 256
Home Title Ins.(Brooklyn) (quar.).... *50c. Dec. 31 *Holders of rec. Dee. 26
Hooker Electro Chemical,6% pref.(qu.) •13.i Dec. 31 *Holders of rec. Dec. 21
Huylers of Delaware, 7% pref.(quar.)
•131 Jan. 2'Holders of rec. Dec. 18
Imperial Royalty, pref.(quar.)
"20. Dec. 31 *Ifolders of rec. Dec. 10
Preferred A (quar.)
•30c. Dec. 31 *Holders of rec. Dec. 10
Indiana Ice &Fuel.6% pref.(quar.)
"1.ti Jan. 1 *Holders of rec. Dec. 31
Industrial Acceptance Corp., 1st pref
Divid end om itted.
Industrial & Power Securities(quar.)_ _ _ 25c. Mar. I Holders of rec. Feb. 1
Quarterly
250. June 1 Holders of rec. May 1
Quarterly
25e. Sept. 1 Holders of rec. Aug. 1
Quarterly
25c. Dec. 1 Holders of rec. Nov. 1
Inter-Island Steam & Navigation(mthly) •10c. Dec. 31 +Holders of rec. Dec. 24
Interlake Steamship(quar.)
50c. Dec. 21 Holders of rec. Doe. 17a
International Pulp. 7% pref. (quar.).
_
•134 Jan. 1 *Holders of rec. Dec. 18
Interstate Bakeries Corp., pref.-Divid end Pa ssed.
Invest. Foundation, Ltd.. cony. pf.(qu.) *38c. Jan. 16 *Holders of rec. Dec. 31
loves. Mtge.& Guar.,corn.(quar.)
•37Mc Dec. 23 *Holders of rec. Dec. 15
Preferred(quar.)
•61.75 Dec. 23 *Holders of rec. Dec. 15
Janss Invest..$6 el. A pref.(quar.)
•31.50 Jan. 2 *Holders of rec. Dec. 21
Johnson Publishing Co.,corn.(quer.).- - *25c. Jan. I *Holders of rec. Dec. 21
8% preferred (quar.)
*2 Jan. 1 *Holders of rec. Dee. 21
Kaufman (Chas. A.) Co., Ltd.(quar.)....
114 Jan. 2 Holders of rec. Dec. 24
Kelley laid. Lime & Transport (guar.)._
200. Jan. 1 Holders of rec. Dec. 24
Kekaha Sugar Co.(monthly)
*20c. Jan. 1 *Holders of rec. Dec. 24
Knott(A.J.) Tool &
7% pf.(qu.). '134 Jan. 1 *Holders of rec. Dec. 15
Kuehne Mfg. Co., pref.
A (quar.)
Mfg.,
*50c.Jan. 1 *Holders of rec. Dec. 26
Laclede Steel (quar.)
+25e. Doe. 31 *Holders of rec. Dec. 23
Lane Cotton Mills(quer.)
"25c. Jan. 1 *Holders of rec. Dec. 22
Langendorf United Bakeries, el. A (qu.). "50o. Jan. 15 *Holders of rec. Dec. 31
Lawyers Mortgage Co.(quar.)
70e. Dec. 31 *Holders of rec. Dec. 21
Lawyers Title & Guaranty (quar.)
3 Jan. 2 Holders of rec. Dec. 19
Leader Filling Station, pref. (guar.).- *61 Jan. 2 *Holders of rec. Dec. 22
Leh.& Wilkes-Barre Coal($50 par) (qu.) *E2 Dec. 31 •Holdent or rec. Dec. 19
No par stock (quar.)
5E4 Jan. 2 *Holders of rec. Dec. 21
Leland Electric Co., corn.-Dividend orn itted.
Loew's (Marcus) Theatres, Ltd., prof.- Divid end omi tted.
Lord & Taylor, 2d pref.(quar.)
+2 Feb. 1 *Holders of rec. Jan. 16
Louisiana Disc. & Sec., com. & pref_ __• 81.875 Jan. 2 +Holders of rec. Dec. 21
Ludlow Valve Manufacturing
*4 Jan. 1
MacKinnon Steel Corp., pref. (quar.)__
*1% Feb. 1 *Holders of rec. Jan. 15
Major Corporation
"27e. Dee. 31 *Holders of rec. Dec. 31
Mansfield Theatres(Toronto)
*3% Jan. 30 *Holders of rec. Dec. 31
Marathon Paper Mills, pref. (quar.)
Jan. 2 *Holders of roe. Dec. 31
Marquette Cement Mfg., pref.(quar.) *$1.25 Jan. 2 *Holders of rec. Dec. 31
McGavin, Ltd.. pref.(quar.)
"1n Dec.31 *Holders of rec. Dec. 18
Melling Forge Co., common-Dividend omitt ed.
Michigan Steel Tube Products-Dividen d omit ted.
Mickelberry Food Products, pref.(quar.) +87.14c Jan. 2 *Holders of rec. Dec. 21
Midland Pacific Grain, pref.(quar.)
•134 Jan. 1 *Holders of rec. Dec. 24
Mitchell(Robt.) Co.(quar.)
200. Jan. 15 Holders of rec. Dec. 31
Mohawk Investment (quar.)
*50e. Jan. 15 *Holders of rec. Dec. 31
Mollohan Mfg., prof
*334 Jan. 2 *Holders of rec. Dec. 26
Montreal Finance Co., Ltd., pref
*El Jan. 2 *Holders of rec. Dec. 15
Morris Plan Bank (Richmond, Va.)(qu.) •6231c Jan. 2 *Holders of rec. Dec. 26
Morris Plan Co.(N. Y.)(quar.)
•600. Jan. 1 'Holders of rec. Dec. 29
M.& P.Stores,7% pref.(quar.)
•131 Jan. 1 *Holders of rec. Dec. 31
Nashua Gum.& Coated Paper, pf.(WO- •IN Jan. 2 *Holders of rec. Dec. 24
National Cash Register-Dividend °mitt ed.
National Distillers (quar.)
•50c. Feb. 1 *Holders of rec. Jan. 15
National Refining, pref.(quar.)
*2 Jan. 1 *Holders of rec. Dec. 16
National Share Corp.(Del.) cl. A (quar.) *4334e Jan. 5 *Holders of rec. Dec. 31
Class A (extra)
.3114 Jan. 5 *Holders of rec. Dee. 31
Newhall Bldg.Trust, pref.(quar.)
•134 Jan. 15 *Holders of rec. Jan. 1
New Departure Mfg., pref. (quar.)
•1I4 Jan. 1 *Holders of rec. Dec. 20
New England Equity, preferred (quar.)_
*2 Jan. 2 *Holders of rec. Dec. 15
North & Judd Mfg.(quar.)
'3734c Dec. 31 *Holders of rec. Dec. 18
North American Car, pref.-Dividend o
No. American Finance Corp., el. A (qu.) *50c. Jan. 2 *Holders of rec. Dec. 24
7% preferred (guar.)
"87,5c Jan. 2 *Holders of rec. Dec. 24
Nutley Mtge.& Title Guar.(guar.)
+1% Jan. 2 *Holders of rec. Dec. 28
Extra
•500. Jan. 2 *Holders of rec. Dee. 28
Oakland Cotton Mills, pref
an.
•Holders of rec. Dec. 26
Ohio Leather,common (special)
Dec.
*3
•2'i
5c.'1
D
aenc. 1 *Holders of rec. Dec. 21
1st preferred (quar.)
+2 Dec. 31 *Holders of rec. Doe. 21
2d preferred (quar.)
+.134 Dec. 31 *Holders of rec. Dec. 21
Ohio Loan, common
*50e. Jan. 2 *Holders of rec. Dec. 30
Preferred (quar.)
*2
*Holders of rec. Dec. 30
Ontario Silknit, Ltd.. preferred-Divide nd passed.
Otis Elevator, preferred (quar.)
13-4 Jan. .15 Holders of rec. Dec. 316
Owl Drug, preferred-Dividend action d eferred
Pacific Associates-Dividend omitted.
Pacific Commercial Co
•70c. Dec. 31 *Holders of rec. Dec.
Pacific Portland Cement, pref.(quar.)-- •1% Jan. 5 *Holders of rec. Dec. 28
Pacific Southwest Itealty, 634% pf.(qu.) •1% Jan. 1 *Holders of roe. Dec. 31
19
534% preferred (quar.)
•1% Jan. 1 *Holders of rec. Dec. 19
Packard Electric Co., common (quar.)-- 200. Dec. 31 Ifolders of rec. Dee. 246
Common (extra)
The. Dec. 31 Holders of rec. Dec. 24a
Peck Bros. & Co.. pref.(quar.)
*373-4e Jan. 11 *Holders of roe. Dec. 31
Pepperell Mfg.(quar.)
*1 Jan. 2 *Holders of rec. Dec. 23
Pequot Mills(quar.)
*E1 Jan. 2 "Holders of rec. Dee. 23
Philadelphia Bourse, corn. (quar.)
•61
Jan. 31 *Holders of rec. Dec. 31
Preferred (guar.)
*51.50 Jan. 31 *Holders of rec. Dec. 31
Philadelphia Co.for Guaranteeing Mtges.-Div friend o milted
Piedmont Mfg
Pioneer Mill Co., Ltd.(monthly)
**813
0c j
Jan
*Holders of rec. Dec. 20
Plaza Bldg. & Loan Assn.(Bait.)
*83.90 Jan. 1 "Holders of roe. Dec. 3
Pollock Paper & Box, pref.(quar.)
*$1.75 Dec. 15 *Holders of rec. Dec. 15
Queen City Petroleum, 7% pref. (qu.) _ :1131 Jan. 14
1 *Holders of rec. Jan. 1
Queen Dyeing Co. 7% pref.(on.)
Jan.
*Holders of rec. Dec. 17
Real Estate Mtge.&
' Guar.(Wash.,D.C.)
Preferred (guar.)
*300. Dec. 31 *Holders of rec. Dec. 19
DEC. 26 1931.]
Name of Company.
4283
FINANCIAL CHRONICLE
When
Per
Cent. Payable.
Books Closed.
Days Inclusive.
Name of Compcnsy.
When
Per
Cent. Payable.
Books Closed.
Days lasesdes.
Railroads (Steam) (Candidate).
Miscellaneous (Concluded).
Jan. 15 Holders of reo. Dee.
1
Kansas City Southern, pref.(quar,)
1
Republic Stamping & Enamel,corn.(qu.) *250. Jan. 10 *Holders of roe. Jan.
Jan. 2 "Holders of tee. Dec. 9
*1
RR. of N. J.(guar.)
Lackawanna
•250. Jan. 15 *Holders of rec. Dec. 31
Rex-Hide Rubber Co.(guar.)
,
$1.25 Jan. 2 Holders of roe. Dee. 12a
Lehigh Valley. pref. (guar.)
of
17
1
Dec.
rec.
*Holders
Jan.
*2
(Qum.)
Jan. 15
---Rhode Island Elec. Protect.
Jan. 15 Dee. 12 to
$1.11
Coal
&
RR.
Nay.
Schuylkill
Little
Doe.
18
*2c. Dec. 23 *Holders of rec.
Rice Ranch Oil Co.. Inc.(guar.)
Feb. 10 Holders of rec. Jan. 15a
2
Louisville & Nashville
Rochester & Pittsburgh Coal,5% pref.- Dividend omit tad.
Mahoning Coal RR., common (guar.)._ 512.50 Feb. 1 Holders of rec. Jan. 156
20
Jan.
rec.
of
*Holders
1
Feb.
*25c.
Ruud Mfg.(guar.)
*31.25 Jan. 2 "Holders of roe. Dee. 23
Preferred
•15c. Mar. 21 *Holders of rm. Mar. 10
St. Joseph Lead Co.(guar.)
*525 Jan. 30 *Holders of rec. Jan. 2
Michigan Central
*50e Jan. 2 *Holders of rec. Dec. 21
Jan. 2 Dee. 2 to Jan. 1
2
St. Paul Union Stock Yard (guar.)
pref
Birmingham,
&
Mobile
rec.
of
*Holders
1
Dec.
26
Jan.
San Diego Ice & Cold storage, A (qu.) *433/0
52.125 Jan. 2 Holders of rec. Dee. Ta
Morris & Essex
Jan. 1 *Holders of rec. Dec. 21
Santa Cruz Portland Cement (quar.).._ *31
•234 Jan. 2 *Holders of rec. Dec. 15
New London Northern (guar.)
Dee. 24 *Holders of rec. Dec. 21
*32
Extra
Jan. 2 "Holders of rec. Dee. 15
*1
Extra
13.‘ Jan. 1 Holders of rec. Dec. 18
Sehoeneman (J.) Inc., lot pref. (guar.)...
Jan. 2 Holders of rec. Dec. 150
$12 50 j
prof
corn.
&
Harlem,
New York &
Schulze Baking, pref.-Dividend omitte d.
Holders of roe. Dec. 18a
(quar.)
Western
&
Lackawanna
Y.
N.
21
Dee.
rec.
of
2"Holders
Jan.
*37340
Seaboard National Securities(qua?)....
Jan. 2 Holders of roe. Dec. 186
1%
(quar.)...
Hartford,
pref.
&
N.H.
Y.
N.
*6214c Feb. 1 *Holders of rec. Jan. 8
Sears, Roebuck & Co.(guar.)
Holders of roe. Dec. 31a
1
2
.
eb..
an
F
J
745e.
1
Northern Pacific (guar.)
Sharp & Dohme, Inc., cony. pref. (qu.) "8735c Feb. 1 *Holders of rec. Jan. 15
Holders of roe. Dec. 14
RR. of New Hampshire (qu.).
*51 Dec. 23 *Holders of rec. Dee. 21 Northern
Second Twin Bell Syndicate
Dec. 19 to Jan. 10
9
Jan.
434
Co
Securities
Northern
750. Jan. 2 Holders of rec. Dec. 21
Securities Invest.Co.of St.L.,com.(gu.).
Jan. 2 Holders of roe. Dee. 10
2
Worcester, pref. (guar.)-&
Norwich
of
21
Holders
2
Dec.
Jan.
rec.
2
Preferred (guar.)
1 Holders of res. Dee. 12
Jan.
1%
(guar.)
Colony
Old
*25e. Dec. 30 Holders of coup. No. 5
Selected American Shares
1 *Holders of roe. Dee.16
e0. 32
Jan
.50 D
"$11%
Phila.. Baltimore & Washington
111.75 Feb. 1 *Holders of rec. Jan. 20
Servel. Inc., preferred (No. 1)
"234 Jan. 10 *Holders of roe. Jan. 1
Philadelphia & Trenton (guar.)
'$1.75 May 2 *Holders of rec. Apr. 20
Preferred (guar.)
Holders of roe. Dee, 106
&
Wayne
Ft.
(guar.)
Intuit,.
COM
Chic..
411.75 Aug. 1 *Holders of rec. July 20
Preferred (guar.)
1% Jan. 5 Holders of roe. Dee. 10a
Preferred (guar.)
*31.75 Nov. 1 *Holders of rec. Oct. 20
Preferred (guar.)
*Holders of rec. Dee. 28
I
Feb.
*$2.50
Erie
Lake
&
Pittsburgh
20
1
Dec.
*Holders of rec.
*13( Jan.
Shaffer Stores,7% pref.(guar.)
Holders of Teo. Dec. 154
Jan.
Pittsburgh MoKeesport & Youghiogheny
300. Jan. 1 Holders of rec. Dec. 21
Sleloff Packing (guar.)
1 Holders of ree. Dee. 9
24 Dec.° . 2
21
Providence & Worcester (guar.)
signode Steel Strapping, pref.-DivIden d omit ted
Holders of roe. Dec. 24a
2
14
Jan.
505.
4
2d
Company,
pref.
(guar.)-Reading
Silver Brook Anthracite,$3 pref.(au)... *75c. Jan. 2 *Holders of rec. Dec. 21
Holders of roe. Dec. 15a
Jan.
Rensselaer & Saratoga
Jan. 2 *Holders of rec. Dec. 21
"$1
Smyth Manufacturing (guar.)
Jan. 1
*3
pref
let
Bridge,
Louis
St.
Jan.
roe.
Jan.
of
2
*Holders
15
'Sc.
Southland Royalty (guar.)
'134 Jan. 1
Second preferred
Dec. 31 "Holders of rec. Dec. 19
*4
Spartan Mills
Jan. 2 Holders of ree. Nov.244
1
Southern Pacific Co.(guar.)
'25e.
Squibb(E.R.)& Sons, corn.(extra)
'234 Jan. 2 *Holders of tee. Dee. 1
Georgia
of
RR.
Southwestern
*134 Jan. 1 *Holders of rec. Dec. 21
Stahl-Meyer, Inc., pref. ((Plan)
Jan, 1 *Holders of rec. Dec. 20
'334
Tennessee Central Ry.,7% prof
'37%c Jan. 2 *Holders of rec. Dec. 17
Stanley Works, corn. (guar.)
1% Deo, 31 Holders of roe. Dec. 14
Texas & Pacific. preferred (guar.)
*3714c Feb. 15 *Holders of rec. Feb. 6
Preferred (guar.)
Jan. 2 Holders of roe. Dee. la
2%
(guar.)
corn.
Pacific,
Union
*75c Jan. 15 "Holders of rm. Dm. 31
State Street Investment (guar.)
Dec. 20 to Jan. 9
United N. J. R.R.& Canal (quar.).... 2% Jan. 10 'Holders
Dec. 31 *Holders of tee. Dec. 21
Sterling Trust Corp.(Toronto), corn-- *3
of roe. Dee. 14
81
.2
Jan.
*234
Y
N.
of
RR.
Valley
1
Jan.
Jan. 15 *Holders of rec.
"51
Stetson (J. B.) Co., pref
of rec. Dec. 12
*Holders
'1%
(guar.)
corn.
Virginian Ry.,
Supersilk Hosiery Mills, Ltd.. 7% pref._ 314 Jan. 2 Holders of rec. Dec. 24
*334 Jan. 2 *Holders of roe. Dec. 31
guaranteed
River.
Ware
of
15
"Holders
15
Jan.
rec.
Feb.
International
$1.50
Swift
•
2 Holders of rm. Dee. 15
Jan.
$1.50
corn
Seashore,
&
Jersey
west
"35c Feb. 1 *Holders of rec. Jan. 15
Telautograph Corp.. corn. (guar.)
*$1.50 Jan. 1 *Holders of roe. Dec. 31
Western N. Y.& Pennsylvania. earn
•25c Dee. 28 *Holders of rec. Dec. 31
Third Twin Bell Syndicate
40.. 31 "Holders of roe. Dee. 31
an
p
*51.25 J
Preferred
*40% Jan. 2 *Holders of rec. Dec. 20
Thrift Stores. Ltd., 1st pref.(guar.)
Holders of rec. Dee. 19
Alabama
of
Western Ry.
*1734c Jan. 2"Holders of roc. Dee. 20
7% 2d preferred (quar.)
Jan. 1 "Holders of rec. Dee. 21
Title Ins. Co.(Minn.) guar.)
*El
Utilities.
Public
Title Ins. Co.(Rich.), Pref.(quar.)._._ i3134 Jan. 2 *Holders of reo. Dee. 28
Holders of roe. Dec. 15
51.75 Jan.
Alabama Power, $7 pref.(quar.)
"150. Dec. 31 "Holders of ree. Doe. 17
Title St Mtge. Guar., Buffalo (guar.)
Holders of rec. Doe. 15
$1.50 Jan.
$6 preferred (guar.)
Jan. 1 *Holders of rec. Dee. 31
Title & Mtge. Guar.(New Orleans)
•$2
Holders of rec. Jan 15
cF
.25
1
..
.
b
en
Taan
j
14(
3
$
4
.
(quar.)
preferred
$5
"250. Jan. 2 *Holders of rec. Dec. 24
Toro Manufacturing (guar.)
Holders of rec. Dec. 20
(guar.).
Allied Telephone Utilities. pref.
Jan. 2 *Holders of roe. Dee. 31
Toronto Carpet, corn. & pref. (guar.)
•$2
Holders of rec. Dec. 15
(N.)
N.J..eom.
of
Co.
Teleg.
Dist.
Amer.
2
15
Jan.
"Holders of rec.
Toronto Elevators, Ltd., pref. (quar.).. •13i Jan.
Holders of rec. Dee. 15
'1%
Jan.
1
(gum.)
Preferred
Towle Manufacturing. corn.(quar.)
*51.50 Jan. 2 *Holders of reo. Dec. 26
Holders of rec. Dee. 14a
American & Foreign Power.$7 pref.(qu.)
134 Jan. 15 Holders of rec. Dec. 31
Tuckett Tobacco, pref. (guar.)
Jan.
. 2 Holders of rec. Dee. 14a
.75
$1
21.50
preferred
(quar.)
$8
flee. 23 *Holders of rec. Dec. 21
*3
Twin Bell Oil Syndicate (guar.)
Holders of rec. Deo. 10
2
Jan.
25o.
corn.
(guar.).Amer. Gas & Electric,
Dee. 23"Holders of rec. Dec. 21
Extra
•10
Jan. 2 Holders of roe. Dec. 10
12
Common (payable in common stock)
•25o. Jan. 2"Holders of rec. Dee. 19
Twin Disc Clutch (guar.)
Holders of rec. Jan. 9
1
Feb.
$1.50
Preferred
(guar.)
Jan. 2 *Holders of roe. Dec. 21
Underwriters Finance, Inc..8% 10.(111.) "2
$1.50 Jan. 2 Holders of rec. Dec. I4a
50e. mar. 1 Holders Of rec. Feb. 160 Amer. Power & Light, $6 pref.(guar.)
United Biscuit, corn. (qua?.)
$1.25 Jan. 2 Holders of rec. Dee. 14a
preferred
$5
I80
Jan.
Preferred (guar.)
13( Feb. 1 Holders of rec.
134 Jan. 2 Holders of roe. Dec. 15
Amer. Public Service, pref.(guar.)
10e. Jan. 15 Holders of rec. Jan. 2
United-Carr Fastener, corn. (quar.)....
Superpower Corp.. 110 prof.(an.) 81.50 Jan. 2 Holders of ree. Dee. 10
United Linen Supply, class A (qua?.)... •8734o Jan. 1 "Holders of rec. Dee. 20
Holders of tee. Dec. 10
Jan.
Preference
(quar.)
United Piece Dye Works, corn.(qua?.).. 25e. Feb. 1 Holders of rec. Jan. 150
Jan.
Jan. 2 Holders of rec. Dec. 19e
.5° j
234
21
Amer. Telep. & Teleg.(quar.)
United Publishers. pref.(guar.)
"131 Dec. 3 *Holders of roe. Dec. 21
75e. Feb. I Holders of rec. Jan. 8a
corn.
&
(ltl.)
Worcs
Elea..
Water
Amer.
United Securities, 7% preferred
*314 Dee. 3
*1.50 Jan. 2 Holders of tee. Dec. llo
$8 Met preferred (Qua?.)
*7c. Jan. 1 'Holders Of rec. Dec. 17
U.S. Banking Corp.(monthly)
Appalachian Elec. Pow.,$7 pref.((111.)-- *51.75 Jan. 2 Holders of roe. Dec. 5
Dec. 30 *Holders of rec. Dec. 19
U. S. Guaranty (guar.)
*4
Holders of roe. Dec. 5
Jan.
(guar.)
preferred
$8
310
U.S. Smelt., Ref.& Mining. cam.(qu.) 250. Jan. 15 Holders of rec. Dee.
2 Holders of ree. Dec. 24
**S21.5°
pref. (guar.)
Preferred (guar.)
8730 Jan. 15 Holders of rec. Dec. 310 Arizona Power. 8%
•1% Jan. 2 Holders of roe. Dec. 24
7% preferred (guar.)
•150. Jan. 15 *Holders of rec. Jan. 1
Universal Cooler Corp., class A
15e. Jan. 2 Holders of rec. Dee. 15
Arkansas Natural Gas, pref. (qua?.)....
Universal Trust Shares
"30e. Jan. 15 *Holders of rec. Dee. 31
•80e. Jan. 1 *Holders of ree. Nov.30
Associated Gas & Elec., allot. ctfa
Virginia Bridge & Iron
*30e. Jan. 1 *Holders of ree. Dec. 26
Jan. 1 *Holders of rec. Nov.30
*54
certificates
allotment
58
29
Dec.
rec.
of
Jan. 2 *Holders
Washington Title Insurance (giutr.)
*31
Jan,
Holders of ree. Dee. 17
$1
Associated Telep.& Teleg.. el. A (qu.)
•1% Jan. 2'Holders of rec. Dec. 29
Preferred (guar.)
50a Jan. 1 Holders of roe. Dee. 17
Clam A (extra)
Waterbury Farrell Fdy. & Mach.(Q11.). *231 Dec. 31 *Holders of rec. Dec. 23
Holders of rec. Dec. 17
1
Jan.
51.50
$o
preferred
nrst
(guar.)
Jan. 5 *Holders of rm. Dec. 31
*2
Welsbach Ill. Co. (annual)
1% Jan. 1 Holders of rec. Dee. 17
7% Mat preferred (guar.)
Western Grocer Co.(Iowa)
.1.334 Jan. 1 *Holders of rec. Dee. 20
Holders of rec. Dee. 17
an.
Jap
1
(2
$
54 preferred (guar.)
50o Jan. 30 Holders of rec. Dec. 310
Westinghouse Air Brake (guar.)
it Holders of tee. Dee. 31
Assootated Telep. Utilities, eom.(a11.).•35e Dec. 31
Wolverine Shoe & Tanning, pref
Holders of tee. Dee. 15
1.60 Jan..
$3
*
$6 cony. pref. series A (guar.)
131 Dee. 31 Dee. 25 to Jan. 1
zWorcester Salt, corn, (guns.)
*Holders of rec. Dec. 15
Attleboro Gas Light Corp. (guar.)
*50c. Jan. 15 *Holders of roe. Dec. 31
Worthington Ball, class A (quar.)
of rec. Dec. 10
*Holders
I
Jan.
*134
Bangor Hydro-Elec.,6% pref.(qua?.)
•344 Jan. 1 "Holders of roe. Dec. 10
7% preferred (guar.)
Jan. 15 Holders of tee. Dee. 23
2
Bell Telephone of Canada, (guar.)
1% Jan. 15 Holders of roe. Dee. 191
Below we give the dividends announced in previous weeks Bell Telephone of Pa., pref.(guar.)
Lt. Ht.& Pow.,$8 pf.(qu.) •$1.50 Jan. 2 ▪ Holders of rec. Nov.30
Jan. 2 *Holders of ree. Nov.30
and not yet paid. This list does not include dividends an- Binghamton
*51.25
$5 preferred (guar.)
Electric Co.. $7 pref. (qu.) $i.75Jan. 2 Holders of rec. Dee. 19
nounced this week, these being given in the preceding table. Birmingham
$1.50 Jan. 2 Holders of reo. Dec. 19
$6 preferred (qua?.)
$1.25 Jan. 2 Holders of ree. Dee. 10
Boston Elevated Sty., corn.(guar.)
Per
When
Brazilian Tr. Lt.& Pow., pref.(qua?.).. 8134 Jan. 2 Holders of tee. Dec. 15
Books Closed.
80e. Dec. 31 *Holders of rec. Dec. 17
•
(guar.)
Light
Bridgeport
Gas
Cent. Payable.
Days Ineluatoe.
Name of Company.
•40o. Jan. 15 *Holders of roe. Dec. 31
Bridgeport Hydraulic (guar.)
31
British Columbia Power, Ltd., el. A (qu) 50e. Jan. 15 Holden; of roe. Dee.
Railroad (Steam).
$2
Dec. 30 Holders of roe. Nov.30
Brooklyn & Queens Trapani, Prof. (01.).. 134 Jan. 2 Holders of roe. Dec. 150
Alabama Great Southern, ordinarY
$2
Feb. 13 Holders of rec. Jan. 8
Brooklyn-Manhattan TransitPreferred
51.50 Jan. 15 Bottlers of rec. Dec. 31a
434 Jen, 1 Holders of rec. Dec. 15a
Preferredieries A (quer.)
Albany & Susquehanna
$1.50 Apr. 15 Holders of roe. Apr. la
2
Jan. 9 Holders of lee. Dee. 180
Preferred series A (amt.)
Extra
$1.25 Jan. 2 Holders of rec. Dec. le
3
Jan, 1 Holders of rect. Dec. 19a Brooklyn Union Gas (guar.)
Allegheny & Western, common
234 Feb. 1 Holders of roe. Dee. 31a Buff. Niagara & East. PowerALM. Topeka & Santa Fe. prof
•40o. Dee. 31 *Holders of rec. Dec. 30
Class A (guar.)
*234 Jan. 1 *Holders of roe. Deo. 11
Atlanta Birmingham & Coast, pref
•21.25 Feb. 2 *Holders of rec. Jan. 15
Dec. 31 Holders of rec. Dec. 19
2
First preferred (guar.)
Point
Atlanta & West
•
40e. Jan. 2 *Holders of tee. Dee. 15
2
Jan. 11 Holders of reo. Dec. lba
Preferred (quar.)
Aileen° Coed Line 88.,corn
15
'2% Jan. 6 *Holders of reo. Deo. 15
Calgary Power Co., Ltd.,com.(quar.).. 134 Jan. 2 Holders of rm. Dee.
Augusta & Savannah
Jan. 2 'Holders of mc. rim. 5
•134
tan.
5"Holders
•25e.
of roe. Dee. 15
California Elm. Generating, Pl.
Extra
Holders of rec. Dec. 31
"1.58 Jan. 1 "Holders of roe. Dee. 28
Canada No.Pow. Corp., corn.(qu.).... 20e. Jan. 25 Holders
Avon Geneseo dt Mount Morris
of roe. Dee. 31
1*4 Jan, 15
7% preferred (guar.)
1
Mar. 1 Holders of rec. Jan. taa
Baltimore & Ohio, pref.(guar.)
50o. Jan. 1 Holders of rec. Dec. 14
870. Jan, 1 Holders of reo. Nov. 30a Capital Traction. Wash., D.C.(qu.)--Bangor es Aroostook.corn.(qua?.)
134 Jan. 1 Holders of reo. Nov. SOa Carolina Power & Light.57 pi.(gu.) _ _ _ $1.75 Jan. 2 Holders of rec. Dec. 12
Preferred (guar.)
$1.50 Jan. 2 Holders of rec. Dec. 12
50e. Jan. 2 Holders of rec. Dee. 15
$6 preferred (guar.)
Beeck Creek (guar.)
*234 Dem, 31 *Holders of rec. Dec. 24
Carolina Tel. & Tel. (quar.)
Belt RR.&Stk.Yds.,Ind'p.oom.dtpf.(qu) •750. Jan. 1 *Holders of roe. Dee. 20
238 Dec.31 Holders of roe. Nov.30
Central Illinois Light Co.,6% pf.(guar.) 134 Jan, 2 Holders of rec. Dec. 15
Boston & Albany (quar.)
Jan. 2 Holders of roe. Dec. 15
1
7% preferred (Qum.)
Boston & Maine, prior pref. (quar.)---- 131 Jan. 2 Holders of rec. Dec. 18
$110 Jan. 1 Holders of roe. Dec. 31
Central Ills. Public Serv.$8 pf.(qu.)
234 Ian. 2 Holders of roe. Dee. 19
Boston & Providence (guar.)
Jan. 1 'Holders of rec. Dee. 10
.134
(guar.)
30'Holders
Maine
pref.
Dec.
8%
"4
Power.
Central
of
rec. Dec. 19
Buffalo & Susquehanna, common
*$1.50 Jan. 1 *Holders of rec. Dec. 10
Dec. 30 *Holders of roe. Deo. 19
*2
36 preferred (guar.)
Preferred
*Holders of rec. Dee. 10
Jan.
7% preferred (guar.)
134 Feb. 1 Holders of rec. Dee. 280
Canada Southern
313(e Dec. al Holders of roe. Dee. la Central Public Service Corp.
Canadian Pacific, corn. (guar.)
Holders of ree. Dee. 12
$1.75 Jan.
Jan.d11 Holders of ree. Dec. 316
$7 preferred (quar.)
Carolina Clinchfield & Ohio,(guar.).
- 1
Holders of roe. Dee. 12
$1.50 Jan.
$8 preferred (quar.)
131 Jan.d11 Holders of rec. Doe. 31a
Stamped certificates (quar.)
Holders of rec. Dec. 12
Jan.
51
54 preferred (guar.)
*31.20 Jan. 2 *Holders of tee. Dec. 20
Cayuga & Susquehanna
Central & S. W.Ut11., corn.(In com.stk.) 1114 Ian. 1 Holders of rec. Dec. 31
Jan. 1 *Holders of ree. Dee. 3
*3
Central Argentine Ry., 6% pref
of ree. Dec. 5
"Holders
2
Jan.
$1.75
•
(qu.)
pref.
Power
1
Lt..
&
States
Jan.
Central
Holders
75e.
of
roe. Dec. 8a
Chesapeake Corporation (guar.)
*Holders of rec. Dec. 5
6234c Jan, 1 Holders of roe, Dee, 86 Central States Utilities, pref.(quar.)... •$1.75 Jan.
Chesapeake & Ohio, 00M.(guar.)
*Holders of
Dec. 24
Preferred series A (qua?.)
331 Jan. 1 Holders of roe. Dee. 86 Cincinnati Street fly., corn. (quar.).... "50e. Jan. 2 'Holders of rec.
roe. Dec ig
Dee. 26 Holders of rec. Dee. 15
Cincinnati & Sub. Bell Telep. (guar.).- *$1.12 Jan.
Chicago Burlineton & Quince
Citlea Serv.Pow.& Lt.$7 M.(mthly.).. 58ite Jan. 15 Holders of roe. Dee, Si.
Dee. 26 Holders of tee. Dec. 5
Cino. N.O.& Texas Paean°,common _ 4
50o. Jan. 15 Holders of roe. Dec. 31.
$8 preferred (monthly)
Dee. 26 Holders of reo. Dee. 5
3
Common (extra)
41 2-3e Jan. 15 Holders of toe. Dee. 315
$5 preferred (monthly)
Cincinnati Union Terminal. Prof.(an.).. M Jan. 1 Holders of rec. Des. 19
58 1-3o Feb. 15 Holders of roe. Feb. 1
$7 preferred (monthly)
Cleve. Cin. Chic. & St. Louis, pf.(qu.). •134d Jan. 30 *Holders of roe. Dee. 21
500 Feb. 15 Holders of rec. Feb. 1
56 preferred (monthly)
Dee. 31 Holders of rec. Dee. 186
2
Colorado & Southern, Is preferred
41 2-3e Feb. 15 Holders of ree. Feb. 1
Dec. 31 Holders of rec. Dee. lila
$5 preferred (monthly)
4
Second preferred
Jan, 1 Dee. 22 to Jan. 1
Citizens
$3.50
(Philadelphia).Sty.
Passenger
(qua
Holders
2
Jan.
of
pref.
100
rec.
Cuba,
of
Dee.
ER.'.
134
Consol.
114 Feb. 1 Holders of rec. Jan. 15a Citizens Water (Wash., Pa.) pref. (1.11.) 'ill Jan, 2 *Holders of roe. Dec. 21
Cuba RR., pref.(emu%)
•40e. Jan. 1 *Holders of reel. Dec. 19
Cleveland Elec. Ill., coin.(gear.)
'Si Jan. 5 *Holders of rec. Dec. 15
Dayton da Michigan, pref.(guar.)
134 Mar. 1 Holders of roe. Feb. 150
Preferred (guar.)
Jan. 1 *Holders of ree. Dee. 16
111
Delaware
1% Jan. 1 Holders of rec. Dee,26a.
Cleveland Railway (guar.)
•$1.61 Jan. 2"Holders of rec. Dec. 19
Elmira & Williamsport, preferred
Clinton Water Works. 7% pf. (gu.)_ _ _ _ "1% Jan. 15 'Holders of rec. Jan. 2
231 Jan. 6 Holders of roe, Jan. 1
Georgia RR.& Banking (guar.)
Feb. 1 Holders of rec. Dee. 29a Columbus Del.& Marlon Elm.$7 Pt(qu) *$1.75 Jan. 1 *Holders of rec. Dec. 19
1
Great Northern preferred (guar.)
Columbus fly. Power & LichtDee. 29 *Holders of roe. Dee. 14
*3
Greene RR
•134 Jan. 2 *Holders of reo. Deo.
6% It preferred (quar.)
2
2 Dec. 12 to Jan. 4
Jan,
lines..
15
leased
Illinois Central.
Commonwealth Teleo.(Pa.).6% pf.(qu) •134 Jan. 15
Indiana Harbor Belt
4
4284
FINANCIAL CHRONICLE
Per
When
Cent. Payable.
Books Closed.
Days Inclusive.
[VOL. 133.
Per
When
Books Closed.
Name of Contralti.
Cent. Payable.
Days Inclusive.
Public Utilities (Continued)
Public Utilities (Continued).
Commonwealth & Southern Corp., eons_
15o. Mar, 1 Holders of rec. Feb. $1 Jamestown Telephone,7% lot pref.(On.) *154 Jan. 1 "Holders of rec.
Deo. 15
$6 preferred (guar.)
$1.50 Jan.
Holders of roe. Dec. 4a
Preferred A (guar.)
*23X Jan. 1 *Holders of rec. Dec. 15
Commonwealth UtilIties, pt. A (quar.).. •$1.75 Jan. 2 *Holders of rec. Dec. 19
Jersey Cent. Lt. Jr Pow.,534% Dr.(111.)- 144 Jan. 1 Holders of rec. Dec. 10
Preferred B (guar.)
•$1.50 Jan. 2 *Holders of reo. Dec. 19
6% preferred (guar.)
136 Jan. 1 Holders of reo. Deo. 10
Commonwealth Water & Light. pf.(qu.) '154 Jan, 2 *Holders of rec. Dec. 21
7% preferred (quar.)
1.41 Jan. 1 Holders of rec. Deo. 10
Community Telephone Co., pref.(guar.) "50o. Jan. 2"Holders of rec. Dec. 21
Kansas City Power Jr Lt., 1st pf. B
Jan. 1 Holders of reo. Dec. 14a
$1.50
Compania Hispano-Americana de ElecKansas Electric Power, 7% pref. (guar.) 13,1 Jan. 2 Holders of rec. Dee. 15
Welded S. A.(Chad) Amer shares__6 Pesetas Deo. 26 Holders of rec. Dec. 18
•1.
14 J-an. 2 *Holders of rec. Dee. 15
6% preferred (guar.)
Conn. Electric Berv..cm,(guar.)
*750. Jan. 1 "Holders of reo. Dec. 16
Kansas Gas Jr Elec. Co..7% pf.((Man)_
1% Jan. 2 Holders of rec. Dee. 15
Consolidated Gas(N.Y.),$5 pref.(flu.). $1.25 Feb. 1 Holders of rec. Dec. 28a
6% preferred (goar.)
$1.50 Jan. 2 Holders of rec. Deo. 15
Consol. Gas, Elec. L. & Pow., Ball.Kansas Power Jr Light, 7% pref. (quar.) *1,i Jan. 2 *Holders of rec. Deo. 19
Common (guar.)
*90o. Jan. 2"Holders of reo. Deo. 15
6% preferred (guar.)
'134 Jan. 2 'Holders of rec. Dec. 19
5% preferred series A (guar.)
•141 Jan. 2"Holders of reo. Dec. 15
Kentucky Power Co., 8% Pref. (Q11.)--- •2
Jan. 2 *Holders of rec. Dec. 15
•14.6 Jan. 2'Holders of reo. Dec. 15
6% preferred series D (guar.)
7% preferred (guar.)
Jan. 2 *Holders of rec. Deo. 15
•14i Jan. 2 *Holders of rec. Dec. 15
534% preferred series E (guar.)
•14i Jan. 2 Holders of rec. Dec. 15
634% preferred (guar.)
Consumers Gas (Toronto) (quar.)
2)4 Jan. 2 Holders of rec. Dec. 15
Kentucky Securities Corp.. corn. (guar.) 134 Jan, 2 Holders of rec. Dee. 190
Consumers Power. 7% Pref.(guar.)._ *141 Jan. 2 *Holders of ree, Deo, 15
Preferred (guar.)
114 Jan. 15 Holders of rec. Dec. 19a
6.0% preferred (guar.)
'1.65 Jan. 2 *Holders of tee. Deo. 15
Keystone Pub. Serv., $2.80 pref.(111.)-- •70e. Jan. 1 *Holders of rec. Deo. 15
6% preferred (quar.)
'134 Jan. 2 *Holders of reo. Deo. 15
Keystone Telephone of Phila..$3 Pf.(qu) *75c. Feb. 1 'Holders of rec. Jan. 21
$5 preferred (guar.)
081.25 Jan. 2 *Holders of rec. Dee. 15
Kings County Ltg.,common (quar.)-___ '$1.50 Jan. 1 .ilolders of rec. Dec. 18
7% preferred
OA% Preferred (monthly)
"550. Jan. 2 *Holders of ree. Dee. 15
((Mar.)
'134 Jan. 1 *Holders of rec. Dec. 18
a% Preferred (monthly)
•50e. Jan. 2 *Holders of roe. Dee. 15
5% preferred (guar.)
•131 Jan. 1 *Holders of rec. Dec. 18
$5 preferred (guar.)
$1.25 Apr 1 Holders of rec. Mar. 15
Lake Erie Power Jr Light. pref.(quar.)__ •15,1 Jan. 2 *Holders of rec. Dec. 24
6% preferred (guar.)
1A Apr. 1 Holders of rec. Mar. 15
Lenox Water Co
Jan. 2'Holders of rec. Dec. 15
*$2.50
6.6% preferred (guar.)
1.65 Apr. 1 Holders of rec. Mar. 15
Lexington Telep., 1334% pref. (quar.).... •j,g Jan. 16 Holders of rec. Dec. 31
7% preferred (quar.)
1% Apr. 1 Holders of rec. Mar. 15
Lone Star Gas, corn. (guar.)
"22e. Dee. 31 *Holders of rec. Dec. 15
6% preferred (monthly)
500. Feb. 1 Holders of rec. Jan. 15
Long Island Ltg.,7% pref.ser. A (011.1.)-134 Jan. 1 Holders of rec. Dec. 16
6% preferred (monthly)
50c. Mar. 1 Holders of rec. Feb. 15
6% preferred series B (guar.)
136 Jan. 1 Holders of rec. Dec. if,
6% preferred (monthly)
50c. Apr. 1 Holders of rec. Mar. 15
Lowell Gas Light, corn. (guar.)
*51 Jan. 2 "Holders of rec. Dec. 19
6.6% preferred (monthly)
550. Feb. 1 Holders of rec. Jan. 15
Mackay Companies, pref. (guar.)
1 Jan. 2 Holders of rec. Dec. 18a
6.6% preferred (monthly)
55c. Mar. 1 Holders of rec. Feb. 15
Manchester Gas, corn.(guar.)
•2
Jan. 2 *Holders of rec. Dec. 19
6.6% preferred (monthly)
55c Apr. 1 Holders of rec. Mar. 15
Preferred
(guar.)
Jan. 2 *Holders of rec. Dec. 19
Continental Gas & Elec., corn.(quar.)__ $1.10 Jan. 2 Holders of rec. Dec. 12
Manhattan RY.. 7% guar. (guar.)
134 Jan, 2 Holders of rec. Dec. lila
Common (extra)
53.60 Jan. 2 Holders of rec. Dec. 12
Maritime Tel. Jr Tel.,corn.(guar.)
*20c Jan. 1 'Holders of rec. Dec. 15
Special (1-5 share corn. stock)------- (I)
Jan. 2 Holders of reo. Dec. 12
7% preferred (guar.)
'1736c Jan. I 'Holders of rec. Dec. 15
Prior preferred (guar.)
154 Jan. 2 Holders of reo. Dec. 12
Memphis Natural Gas,$7 pref.(guar.)
$1.75 Jan, 1 Holders of rec. Dec. 19
Continental Passenger RY
$2.60 Deo. 30 Holders of reo. Nov. 300 Memphis Power Jr Light,$7
pref.(qu,)
$1.75 Jan, 2 Holders of tee. Dec. 12
Continental Telephone, 7% Pref. (.111.)- "1% Jan. 2'Holders of rec. Dec. 15
$6 preferred (guar.)
51.50 Jan. 2 Holders of rec. Dec. 12
6 A% preferred (guar.)
'154 Jan. 2 *Holders of rec. Dec. 15
Metropolitan Edison Co.,$6 pref.(rm.). *51.50 Jan. 1 'Holders of tee. Nov. 30
Cuban Telephone Co., corn. (quar.)..
2
Dec. 31 Holders of rec. Dec. 150 Mexican Tel. Jr Tel., 7% pr. pref. (qu.)_
Dec. 31 *Holders of rec. Dec. 19
Preferred (quar.)
154 Dec. 31 Holders of rec. Dec. 150 Michigan Elec. Power, 6%
pref. (qu.)..
134 Jan, 2 Holders of rec. Dec. 15
Dayton Power & Light, pref. (monthly) •50c. Jan. 1 'Holders of rec. Dec.f20
7% preferred (guar.)
134 Jan. 2 Holders of rec. Dee. 15
Denver Tramway Corp., pref.(gmur.)
250. Ian. 2 Holders of rec. Dec. 150 Michigan Pub. Serv.,6%
pref.(guar.)
134 Jan. 2 Holden of rec. Dec. 15
Detroit Edison Co.(guar.)
2
Jan. 15 Holders of tee Dec. 21a
7% preferred (quar.)
141 Jan. 2 Holders of rec. Dec. 15
Diamond State Telep.,6 A % Pr.(Qu.)-- '154 Jan. 15 *Holders of rec. Dec. 19
Middle States Telephone,7% of.(ou.)-- '134 Jan. I 'Holders of rec. Dec. 20
Duke Power, corn. (guar.)
134 Jan. 2 }folders of rec. Dec. 15
Middlesex Water, pref
"335 Jan. 2 *Holders of rec. Dec. 21
Preferred (guar.)
Si Jan. 2 Holders of rec. Dec. 15
Midland Utilities Co.,7% prior lien (qu.) 1% .lan. 6 Holders of rec. Dec. 22
Duquesne Light. let pref. (guar.)
dl Y4' Jan. 15 Holders of reo. Dec. 310
6% Prior lien (guar.)
134 Jan, 6 Holders of rec. Dee. 22
Eastern Gas & Fuel Assoc.. Dr. of.(00.)134 Jan
1 Holders of rec. Dec. 15
7% preferred A (guar.)
1% Jan, 6 Holders of rec. Dec. 22
6% preferred (guar.)
154 Jan. 1 Holders of rec. Dec. 15
6% preferred A (guar.)
136 Jan. 6 Holders of rec. Dec. 22
Edison Elec. Ill., Boston (guar.)
3.40 Feb. 1 Holders of rec. Jan. 11
Minn.Power Jr Light,7% pref.(qui Jan. 2 Holders of rec. Dec. 15
Electric Bond & Share, corn.(guar.).- /135 Jan. 15 Holders of rec. Dec. 5
$6 preferred (guar.)
31.50 Jan, 2 Holders of rec. Dec.
$6 preferred (guar.)
11.50 Feb. 1 Holders of rec. Jan. 9
Mississippi Power Co., $7 pref. (on.)... $1.75 Jan. 2 Holders of rec. Dec. 15
19
$5 preferred (guar.)
$1.25 Feb. 1 Holders of rec. Jan. 9
SO preferred (guar.)
$1.50 Jan. 2 Holders of rec. Dec. 19
Elec. Power Jr Light,$7 pref.(guar.)._ _ 81.75 Jan. 2 Holders of rec. Dec. 12a Mis.s1s.sippl
11
River Power, pref.
Jan. 2 *Holders of rec. Dec. 15
gfi preferred (guar.)
$1.50 Jan. 2 Holders of roe. Dec. 12a Mississippi Valley Pub.Serv.. (guar.)pref.B(gu) •134 Jan. 1 *Holders of rec. Dec. 21
Allotment Mt.full paid (guar.)
154 Jan. 2 Holders of rec. Dee. 120 Missouri Edison Co., pref.
(guar.)
$1.75 Jan. dl Holders of rec. Dec.d19
Allotment ctfs. 90% paid (quar.).___ 1.575 Jan. 2 Holders of rec. Dec. 12a Mohawk Hudson
Pow.p1.(qu.)
$1.75 Feb. 1 Holders of rec. Jan. 15
Elizabethtown Consol. Gas (quar.)___ •1
Jan. 2 'Holders of rec. Dec. 29
Second preferred (guar.)
Jan, 2 Holders of rec.
$1.75
15
Elizabethtown Water Co. Consol
'236 Dec. 31 *Holders of rec. Dec. 21
Monongahela Valley Water.7% pf.(OIL) "1St Jan. 15 'Holders of rec. Deo
Jan. 2
Empire District El. Co..6% pf.(mthly.)
50e. fan. 2 Holders of rec. Dec. 16a
Monongahela W Penn.Pub.Ser.pf.(qu.) 434f e. Jan. 1 Holders of rec. Dec. 15
6% preferred (mthly.)
50c. Feb. 1 Holders of rec. Jan. 15
Montreal Tramways guar.)
234 Jan. 15 Holders of rec. Jan. 7
Empire Use & Fuel,8% p1.(mthly.)_
66 2-3c Jan. 2 Holders of tee. Dec. 15a Mountain States Power. pref.
194 Jan, 20 Holders of rec. Dec. Si
7% preferred (monthly)
58 1-3c Jan. 2 Holders of rec. Dec. 15a Mountain States Tel. Jr Tel. (guar.)...
quar.)_
"2
Jan. 15 *Holders of rec. Dec. 31
preferred
54 1-6c Jan. 2 Holders of reo. Dec. 15a Municipal Service,corn.(special)
(monthly)
6)4%
.5043 Jan. 15 "Holders of rec. Dec. 15
8% preferred (monthly)
50e. Jim. 2 Holders of rec. Dec. 15a Mutual Telep. (Hawaii)
•80 Dec. 3 *Holders of rec. Dec. 18
(madly.)
8% preferred (monthly)
662-3c Feb. 1 Holders of reo. Jan. 15a Nassau Jr Suffolk Ltg., 7%
pref.
Holders of rec. Deo. 16
134 Jan.
7% preferred (monthly)
58 1-3c Feb. 1 Holders of rec. Jan. 15a National Electric Power, corn. A (qu.)-(guar.) *45o Feb.
*Holders of rec. Jan, fl
6)4% preferred (monthly)
54 1-6c Feb. 1 Holders of rec. Jan. 150
Common class B (guar.,
45o.
Deo.
Holders
3
of reo. Dec. 10
6% preferred (monthly)
50c. Feb. I Holders of rec. Jan. 15a
7% preferred (guar.)
134 Jan.
Holders or rec. Dec. 10
Empire Power Corp.,$6 pref.(qu.)
$1.50 lan. 1 Holders of rec. Dec. 16
6% preferred (guar.)
Holders of rec. Dec. 10
1)4 Jan.
Participating stock
56c. fan. 1 Holders of roe. Dec. 16
National Public Service, corn, B (spec.)..
60e. Jan, 15 Holders of rec. Dec. 10
Emporia Telephone, corn.(guar.)
Dec. 31 *Holders of rec. Dec. 29
*53
Preferred ((luar.)
154 Ian, 1 Holders of rec. Dec. 10
Preferred (quar.)
*51.75 Dec. 31 *Holders of rec. Dec. 29
Nevada-California Electric, prof. guar.) 1,4 Feb. 1 Holders of rec. Dec. 300
Engineers Public Serv., corn.(qu.)
40c. Jan. 2 Holders of rec. Dec. 17a Newark Consol. Gas
•234 Jan. 2 *Holders of rec. Dec. 21
$6 preferred (guar.)
31.50 Jan. 2 Holders of rec. Deo. 17a New Brunswick Lt., Ht.
Jr Pow.rd.(C01.) •234 Jan. 2'Holders of rec. Dec. 21
$534 preferred (quar.)
$1.375 Jan. 2 Holders of reo. Deo. 17a New Brunswick Telep.
guar.)
"20c Jan. 15 *Holders of rec. Dec. 31
$5 preferred (guar.)
$1.25 Jan. 2 Holders of reo. Dee. 170 New England Gas Jr Elec.
Assoc.
Fall River Electric Light (quar.)
*50c. Jan. 2 'Holders of rec. Deo. 15
35.50 preferred (guar.)
51.375 Jan. 2 Holders of rec. Nov. 30
Feather River Power Co., pf. A (guar.)- •154 Dec. 31
$7 second preferred (guar.)
"51.75 Jan. 2 *Holders of reo. Nov.30
Federal Light & Tract., corn. (quar.)......_ 3734e. Jan. 2 Holders of reo. Dec. 14a New
England Power Assn (quar)
'50e Jan. 15 *Holders of rec. Dec. 31
Corn.(payable In corn. stock)
fl
Jan, 2 Holders of reo. Dec. 144
6% preferred (guar.)
•134 Jan. 2 *Holders of reo. Dec. 10
Federal Public Service. Prof. (quar.)---- '154 fan. 15 'Holders of rec. Dee. 31
$2 preferred (guar.)
*50c Jan. 2 *Holders of rec. Dec. 10
Florida Power & Light, pref.(quar.)____ 154 Jan. 2 Holders of rec. Deo. 22
New England Power Co., pref.(quar.)
s13.6 Jan. 2 "Holders of rec. Dec. 10
Foreign Light & Power. $6 pref. (guar.).- $1.50 lau
Holders of rec. Dec. 20
New England Public Service Co.
Gas & Electric Co. of Bergen County.- *214 Jan. 2 *Holders cf rec. Dee. 16
Common (guar.)
25e Dec. 31 Holders of rec. Dec. 15
Das& Elec. Securs. Co.,com.(mthly.)__
50c. Jan. 2 Holders of rec. Dec. 150
57 preferred (guar.)
51.75 Jan. 15 Holders of rec. Dec. 31
Corn.(payable in corn. stk.)(mthly.)_
131 Jan. 2 Holders of rec. Dec. 150
$6 preferred (guar.)
51.50
Jan. 15 Holders of rec. Dec. 31
Preferred (monthly)
581-30 Jan. 2 Holders of rec. Dec. 15a
Adjustment preferred (guar.)
51.75 Jan. 15 Holders of rec. Dec. 31
Gas Secure. Co.corn.(in scrip)(mthly.)
0)4 Jan, 2 Holders of rec. Dec. I50
$6 convertible preferred (guar.)
$1.50
Jan. 15 Holders of rec. Dee. 31
Preferred (monthly)
50c. Jan. 2 Holders of rec. Dee. 150 New England Telep. Jr Teleg. (guar.)._
2
Deo. 31 Holders of reo. Dec. 10
General Use Jr Elec. Corp.. tem. A (qu.) 0,) Jan. 2 Holders of reo. Nov. 30s New Hampshire Power, pref.
(guar.).- "2
Jan. 1 *Holders of rec. Dec. 15
Common class B (guar.)
(a) Jan. 2 Holders of reo. Nov.30a N. J. Water Co., pref. (guar.)
Jan.
"1%
$1.75 Jan. 2 Holders of tee. Nov. 30a New York Power Jr Light,7% pf.(qu.)_ *1% Jan. 2 *Holders of roc. Dec. 21
$7 preferred (quar.)..
2 *Holders of rec. Dec. 16
$8 preferred (guar.)
Jan. 2 Holders of reo. Nov. 30e
$2
$6 preferred (guar.)
41.50 Jan. 2'Holders of rec. Dec. 16
Georgia Power Co.. $6 pref. (quar.)___ $1.50 Ian. I Holders of rec. Dee. 15
New York Jr Richmond Gas,6% of.(qu) '13.6 Jan. 1 'Holders of rec. Dec. 15
$5 preferred (guar.)
$1.25 fan. 1 Holders of reo. Dee. 15
New York Steam,$7 pref. (quar.)
51.75 Jan. 2 Holders of roe. Dec. 150
Gold & Stock Telegraph (guar.)
134 Jan. 2 Holders of tee. Dec. 310
38 preferred (guar.)
$1.50 Jan. 2 Holders of rec. Dee. 154
Great West. Pow.(Calif.) 7% Pf.(0u.).- '154 Jun. 2 *Holders of rec. Dec. 5
New York Telephone,6 A % pref.(gu.)laeno.
1.
10
. 31
40..D
15 Holders of rec. Dec. 19
6% preferred (guar.)
'1)4 Jan. 2 *Holders of rec. Deo. 6
Niagara Hudson Power, corn.(quar.)--Holders of rec. Nov. 24
Greenwich Water & Gas,6% pt. (q6.1.)North Amer. Co. corn.(In corn. stk.).
'134 Jan, 2 'Holders of rec. Deo. 21
r4 Jan. 2 Holders of tee. Dee. Sc
Hackensack Water. pref. A (guar.)
43340 Dec. 31 Holders of rec. Dec. 18a
Preferred (guar.)
75c Jan. 2 Holders of rec. Dec. 5a
Hamilton Bridge. pref.(quar.)
144 Feb.
Holders of reo. Jan. 15
North Amer. Light Jr Pow..$6 pref.(au.) $1.50 Jan. 2 Holders of rec. Dee. 19
Hartford Gas, corn. (guar.)
*50c. Dec. 30 *Holders of rec. Dec. 16
North Continent UM,corn. A (01.)---- •3734o Jan. 2 "Holders of rec. Dec. 15
Common (extra)
*250. Dec. 30 *Holders of rec. Dec. 16
7% preferred (guar.)
•134 Jan. 2 *Holders of rec. Dec. 15
Preferred (guar.)
*50c. Dec. 30 *Holders of rec. Dec. 16
6% preferred (guar.)
'114 Jan. 2 *Holders of rec. Dec. 15
Havana Elec..k UtIntles. 1st pt.(au.)$1.50 Feb. 15 Holders of rec. Jan. 14
North Shore Gas, pref.(guar.)
11
A pr 2 *Holders of rec. Dec. 10
.•
1 Li Jan,
$1.25 Feb. 15 Holders of rec. .lan. 14
$5 preferred (guar.)
Preferred (guar.)
*Holders of rec. Mar. 10
Haverhill Gas Light (guar.)
57c. Jan. 2 Holders of rec. Dec. 22
Preferred (guar.)
•1N July 1 'Holders of rec. June 10
Illinois Bell Telep.(guar.)
Deo. Si 'Holders of rec. Dec. 30
.2
Preferred (guar.)
•134 Oct. 1 *Holders of rec. Sept. 10
Illinois Commercial Telep., $6 pref.(qn.) "51.50 Jan. 15 'Holders of rec. Dec. 31
North West Utilities Co..7% pr. pf.(qu.) 134 Jan, 2 Holders of rec. Dec. 15
$7 preferred (quar.)
*51.75 Jan. 1
Northeastern Pub.Serv.,pf.(qU.)(No. 1) 37340 Jan. 1 Holders of rec. Doe. 5
Illinois Pow.& Lt. Corp.,6% pf.
Prior preferred (goar.)(No. 1)
134 Jan, 2 Holders of rec. Dec. 10
$1.375 Jan. 1 Holders of rec.
$6 preferred ((Mari
Northern Indiana Pub. Sore.7% p1.(qu) 154 Jan. 14 Holders of rec. Dec. 5
$1.50 Feb. 1 Holders of rec. Jan. 9
Dec. 31
Illinois Power Co.,6% pref.(quar.)
6% preferred (guar.)
134 Jan. 2 Holders of rec. Dec. 15
134 Jan. 14 Holders of rec. Dec. 31
7% preferred (guar.)
141 Jan. 2 Holders of roe. Dec 15
% preferred (guar.)
154 Jan. 14 Holders of rec. Dec. 31
Illinois Traction, 6% pref.(quar.)
Northern N. Y. Utilities. pref. (guar.)
•134 Jan. 2 *Holders of rec. Deo. 19
151 Feb. 1 Holden; of rec. Jan. 11
Indiana General Service, pref. (guar.).A Jan. 2 'Holders of rec. Dec. 5
Northern Ontario Power, Ltd.. com.(gu)
50o. Jan, 25 Holders of rec. Dee. 31
indiana & Michigan Elec.. 7% of.(au.)- •1% Jan. 2 *Holders of rec. Dec. 5
6% preferred (guar.)
136 Jan. 25 Holders of rec. Dec. 31
6% preferred (guar.)
*1A Jan. 2 *Holders of rec. Dee. 5
Nor.States Power (Del.). corn. A (guar.) 2
Feb. 1 Holders of rec. Deo. 31
7% preferred
IndlanapolLs Power & Lt.,6% pt.(qu.)
'1)4 Jan. 2'Holders of reo. Deo. 5
131 Jan. 20 Holders of rec. Dec. 31
(guar.)
634% preferred (guar.)
'154 Jan, 2 'Holders of rec. Dec. 5
6% preferred (quar.)
134 Jan. 20 Holders of rec. Dec. 31
Indianapolis Water Co.. pref. A (guar.) 13‘ Jan, 1 Holders of reo. Dec. 12a Northport Water Works. pref. (guar.)._
134 Jan. 1 Holders of rec. Dec. 16
Inland Power & Light,7% pref.(guar.)- 154 Jan. 2 Holders of rec. Dec. 15
Northwestern Bell Telep.,634% pf.(au.) 144 Jan. 15 Holders of
rec. Dec. 19
Internat. Hydro-Elec. System. el A (qu.) (a) Jan. 15 Holders of rec. Deo. 280 Northwestern Telegraph
S1.50 Jan. 2 Dec. 17 to
Jan. 1
$3.50 convertible preferred (quar.)- -- 87340 Jan, 15 Holders of rec. Dec. 28a Nova Scotia Light Jr Power, ord.(guar.) '51 Jan. 2 *Holders
Dec. 19
of
rec.
International Superpower (guar.)
250. Jan. 2 Holders of rec. Dec. 18
Ohio Associated Telep.. pref.(guar.).-- *350. Jan. 1 *Holders of rec. Dec. 20
Internat. Telen
Teleg.(guar.)
15c. ran. 15 Holders of rec. Dec. lsa Ohio Cities Water, $6 pref. (guar.)
"$1.50 Jan. 2 *Holders of rec. Dec. 21
Internat'l Utilities $7 prior pref. (quar.)_ *81.75 Feb. 1 *Holders of rec. Jan. 15
Ohio Edison Co..$5 pref.(guar.)
31.25 Jan. 2 Holders of rec. Dec. 15
$3.50 prior preferred (quar.)
gg preferred (guar.)
•87 34c Feb. 1 *Holders of rec. Jan. 15
51.50 Jan. 2 Holders of rec. Dee. 15
$1.75 preferred (guar.)
Preferred
"43340 Jan. 15 *Holders of rec. Dec. 30
$6.60
(guar.)
$1.65 Jan. 2 Holders of rec. Dee. 15
Interstate Power Co., $6 pref.(quar.)__ "$1.60 Jan. 2 "Holders Of rec. Deo. 6
gy preferred (guar.)
$1.75 Jan. 2 Holders of reo. Dec. 15
$7 preferred (guar.)
"51.75 Jan. 2 *Holders of roe. Dec.5
57.20 preferred (quar.)
51.80 Jan. 2 Holders of rec. Deo. 15
Iowa Power & Light, 7% pref.(guar.).- '134 Jan. 2 'Holders of rec. Dec. 15
Ohio Electric Power,7% pref.(guar.). _
•131
Jan. 2 'Holders of rect. Dee. 15
•1
6% Preferred (guar.)
Jan
2 *Holders of rec. Dec. 15
6% preferred (guar.)
'134 Jan, 2 *Holders of rec. Dec. 15
Iowa Southern Utilities. 7% pref.(qu.) _ •154 Dec. 31 *Holders of rec. Dec. 15
Ohlo Pub. Serv. Co., 7% pref. (mthly.) 58 1-3c Jan. 2 Holders of reo. Dec. 1150
654% preferred (guar.)
g% preferred (monthly)
*144 Dec. 31 'Holders of rec. Dec. 15
41 2.
503
00.1j
Jan
an .. 2 Holders of reo. Deo. 150
6% preferred (guar.)
5% preferred (monthly)
"134 Dec. 31 *Holders of rec. Dee. 15
Holders of roe. Deo. 150
Jamaica Public Service. corn.
7% preferred (monthly)
25e. Jan. 2 Holders of rec. Deo. 18
58
1-30
Feb,
1 Holders of rec. Jan. 150
Preference (quar.)
6% preferred (monthly)
154 Jan. 2 Holders of rec. Deo. 18
0
-3
ce Feb
Holders of rec. Jan. 150
Joplin Water works,6% pref.(quar.)
5% preferred (monthly)
'134 Jan. 15 *Holders of rec. Jan. 2
41 25
Holders of reo. Jan. 15a
Name of Company.
--
Name of Company.
4285
FINANCIAL CHRONICLE
DEC. 26 1931.]
Per
When
Cent. Payable
Rook' Closed.
Days Ineinsise.
Name of Company.
When
Per
Cent. Payable.
Books Closed.
Days Inclusive.
Public Utilities (Concluded).
Public Utilities (Continued).
Jan. 2 *Holders of rec. Dec. 5
Jan. 1 Holders of reo. Dec. 24a Utah Power & Light, $7 pref.(quar.)
Ohio Telephone Service. pref.(guar.).Jan. 2 *Holders of rec. Dee. 5
$6 preferred (guar.)
Orange & Rockland Elec..7% Pi.(qtr.) - •134 Jan. 2 *Holders of roe. Dec. 25
Corp.
&
Power
Light
Utilities
25
Dec.
roe.
of
*Holders
2
Jan.
'14
Jan. 2 Holders of rec. Dec. 5
6% Preferred (guar.)
Corn.(one-fortieth share corn.stock)_.
Ottawa Light Heat & Power, corn.(qu.) 133 Dec. 31 Holders of rec. Dee, 15a
Jan. 2 Holders of rec. Dec. 5a
Class A (guar.)
144 Jan. 1 Holders of rec. Dec. 15a
Preferred (guar.)
Jan. 2 Holders of rec. Dec. 5
stook)
corn,
share
(one-fortleth
B
Class
Dec.
of
15
*Holders
rec.
1
Jan.
*$1.50
Otter Tall Power(Del.) $8 Pref.(01.)
2 Holders of rec. Doe. 5
Jan.
(guar.)
preferred
7%
• 11.375 Jan. 1 *Holders of rec. Dec. 15
$5.50 preferred (quar.)
Jan,
1 Holders of rec. Dee. 10
Virginia Public Service. 7% pref.(qu.)
*Holden) of rec. Dec. 15
50e. Jan,
Pacific & Atlantic 'feint
Jan. I Holders of rec. Dec. 10
(guar.)
preferred
6%
310
50e. Jan. 15 Holders of reo. Dec.
Pacific Gas & Electric. corn.(guar.)._
Holders of rec. Dee. 19
2
Jan.
pref.(qu.)
Wabash Telephone Securities,
$1.50 Jan. 15 Holders of roe. Dec. 31
Pacific Lighting Corp., $6 pt.(quar.)
Jan. 1 Holders of rec. Dee. 20
Warren (Ohio) Telephone,7% pref.(qu.) •1
Pacific Northwest Public ServiceHolders of roe. Dec. 15
1
Ian.
(ctn.)&
Gas
Pref.
Elec.,
7%
Washington
•134 Jan. 1 *Holders of Fee. Dec. 15
7% prior preferred (guar.)
of rec. Dec. 22
Wait Kootenay Power & Light, pt.(01.) 144 Jan. 2 Holders
•1.80 Feb. 1 *Holders of rec. Jan. 15
7.2% first preferred (guar.)
A (qu.)--- $1.75 Dee. 30 Holders of roe. Dec. 170
class
Co.,
Electric
Penn
West
15
Dec.
rec.
of
*Holders
1
Jan.
•133
6% first preferred (quar.)
rec. Jan. 56
of
Holders
1
Feb.
134
(quar.).
pref.
7%
Co.,
Power
Pacific Telep.& Teleg..common (guar.). 134 Dec. 31 Holders of rec. Dee. 190 West Penn
114 Feb. 1 Holders of rec. Jan. 5a
6% preferred (Quer.)
134 Jan. 15 Holders of rec. Dee. 310
"Preferred (guar.)
Holders of rec. Dec. 15a
1
Jan.
$4.25
Sty
Phila.
Pass.
West
Panama Power & Light, pref.(quar.) . .0134 Jan. 2 *Holders of rec. Dec. 15
$1.50 Ian. 2 Holders of rec. Dec. 15
$6 pref. (quar.)Penn Central Light & Pow.,$5 pref.(qu) $1.25 Jan. 1 Holders of rec. Dee. 100 West Texas Utilities,
6854e Dec. 31 Holders of rem Doe. 18
Western Mass. Cos.. corn.(guar.)
70e. Jan. 1 Holders of rec. Dee. 10
$2.80 preferred (quar.)
Jan. 2 Holders of rec. Dec. 23
*$1.25
Y.
(quar.)
pref.
Water.
N
Western
Pennsylvania Gas & El. Co.$7 pf.(021i.). 41.75 Jan. 2 *Holders of roe. Doe. 20
13( Jan. 2 Holders of rec. Dec. 26
Western Power Corp.. prof.
Jan. 2 "Holders of rec. Dee. 20
7% preferred (guar.)
•I
Jan. 1 *Holders of rec. Dee. 15
(qu.)_
A
pf.
Telep..
az
Lt.
Pow..
Western
Pennsylvania Power & Light Co.
'134 Jan. 1 'Holders of rec. Dee. 15
6% preferred series B (guar.)
$1.75 Jan. 2 Holders of rec. Dec. 15
$7 preferred (guar.)
134 Jan. 15 Holders of rec. Dec. 226
Western Union Telegraph (guar.)
$1.50 Jan. 2 Holders of rec. Dee. 15
$6 preferred (guar.)
*Holders of rec. Jan. 2
Wichita Water Co..7% pref.(quar.)__._ •134 Jan. 15 "Holders
31.25 Jan. 2 Holders of rec. Dee. 15
$5 preferred (guar.)
of rec. Dec. 15
Jan. 2
*133
Wisconsin Elec. Power,634% Pf.(qu.).
Pennsylvania Telephone, pref. (guar.).- '1% Jan. 1 *Holders of rec. Dec. 15
•133 Jan. 2 "Holders of rec. Dec. 15
(guar.)
preferred
15
Dec.
roe.
of
Holders
2
6%
Jan.
750
Pennsylvania Water & Power (quar.)
rec Dee. 31
or
Holders
2
tan.
314
pref
Co..
Electric
Wisconsin
Valley
'it' Jan. 2 Holders of rec. Dec. 21
Peoria water Works. pref. (quar.)
'$3 Jan. 1 *Holders of roe. Dec. 15
York Railways, corn. (extra)
•$3.75 Jan. 10 *Holders of rec. Dee. 28
Philadelphia City Pass.fly
65e. Jan. 25 Holders of rec. Dec. 31
Philadelphia Co., corn. (guar.)
Banks.
$1.50 Jan. 2 Holders of rec. Dec. 1
$6 preferred (quar.)
Jan. 2 Holders of ree. Deo. lla
$1
Chase National (guar.)
$1.25 Jan. 2 Holders of rec. Dec. 1
$5 preferred (guar.)
Jan. 2 *Holders of rec. Deo. 15
Nat. Bk. & Tr.(quar.) "31
Phenix
Chatham
Jan. 1 'Holders of rec. Dee. 20
Philadelphia az Darby RY
Jan. 2 *Holders of rec. Dec. 15
*2
50e. Jan. 1 Holders of rec. Dec. 10a Commercial Nat. Bk.& Tr.(quar.).-..
Philadelphia Elec.Power, pref.(guar.) _
Jan. 2 Holders of rec. Dee. 316
(quar.)
Fifth
Avenue
15
Dec.
2
ree.
*Holders of
154 Jan.
'
Ponce Electric Co., pref.(guar.)
Jan. 2 Holders of rec. Dec. 246
25
(qUar.)
First National Bank (N.Y.)
Porto Rico Power Co., Ltd., pref. (qu) 1$4 Jan. 2 Holders of rec. Dec. 15
31 *Holders of rec. Dee. 24
Dec.
•750.
Flatbush National (guar.)
tl 34 Jan. 15 Holders of rec. Dee. 31
Power Corp.of Canada,6% pref.(qu.)
Jan. 2 Holders of rec. Dee. 12
Si
(guar.)
City
National
S75c. Jan. 15 Holders of rec. Dec. 31
6% participating pref. (guar.)
31 "Holders of rec. Dee. 19
Dec.
•50o.
(guar.)...
Public National Bank & Trust
*30e. Jan. 2 *Holders of rec. Dec. 15
Providence Gas (guar.)
Jan. 2 'Holders of rec. Dee. 24
*2
Island)
Public Service of Colo., 7% 1)1.(mthly.) 58 1-3e Jan. 2 Holders of ree. Dec. 150 South Shore (Staten (Staten
11 *Holders of rec. Dec. 31
Jan.
*4
Island)....
50e. Jan. 2 Holders of roe. Dec. 15a West New Brighton
6% preferred (monthlY)
41 2-3o Jan. 2 Holders of rec. Dec. 15a
5% preferred (monthly)
Companies.
Trust
Public Service of Indiana,$7 pr. pt.(au.) $1.75 Jan. 15 Holders of rec. Dec. 31
Tr.(an.).. •13,.‘ Jan. 2 *Holders of rec. Dec. 15
Public Barr. Corp. of N..).. cam.(guar.) 85c. Dec. 31 Holders of rec. Dec. to Bence Commerciale Italians
434 Jan. 2 Holders of rec. Dec. 186
2
Dec. 31 Holders of reo. Dec. la Bank of New York & Trust (guar.)
8% Preferred (quar.)
75o Jan. 2 Holders of rec. Dec. 11
Bankers
Trust
(guar.)
13( Dec. 3 Holders Of rec. Dec. la
7% Preferred (quar.)
Jan. 1 'Holders of rec. Dec. 19
*25e
$1.25 Dec. 3 Holders of ree. Dec. la Bronx County (quar.)
$5 preferred (guar.)
5 Jan. 2 Holders of rec. Dec. 22
(guar.)
Brooklyn
1
Dec.
3
reo.
50e. Dec.
Holders of
6% preferred (monthly)
Jan. 2 Holders of rec. Dec. 18
$1.50
(quar.)
Tr.
&
Bank
Central Hanover
Jan. 2 Dec. 22 to Jan. 2
Public Service of Oklahoma,corn.(guar.) 2
Jan. 2 'Holders of rec. Dec. 18
$1
Extra
13( Jan. 2 Dec. 22 to Jan. 3
7% prior lien stock quar.)
Jan. 2 Holders of rec. Dee. 18
45o.
&
Bank
Trust
Chemical
(Muir.)
134 Jan. 2 Dec. 22 to Jan. 3
6% prior lien stook (guar.)
2 Holders of rec. Dee. 230
Jan.
30e.
County Trust (guar.)
Public Serv. Else.& Gas,7% p1.(qu.)._ 13( Dec. 3 Holders of roe. Dec. 1
80e. Jan. 2 Holders of rec. Dee. 170
$1.25 Dec. 81 Holders of rem Dec. la Empire (quar.)
$5 preferred (guar.)
Holders of roe. Dee. 31
81
Dec.
(tear.)
&
Bank
Trust
Federation
Puget Sound Power dc Light. $6 pf.(a) "11.50 Jan. 1 *Holders of rec. Dec. 21
Holders of rec. Dec. 21
3 Jan.
Fulton (guar.)
*$1.25 Jan. 1 *Holders of rec. Dee. 21
$5 prior preferred (guar.)
Dec. 31 Holders of ree. Dec. 4
5
(quar.)
Guaranty
50o. Jan. 15 Holders of roc. Dec. 23
Quebec Power (guar.)
Holders of rec. Dee. 4
Jan.
400.
Irving (quar.)
Queensborough Gas & Elee.,6% pt.(qu.) •1 34 Jan. 2 *Holders of rec. Dec. 16
Jan. 2 Holders of rec. Dec. 154
Si
Manhattan Co.(guar.)
Richmond Water Works.6% lat. (an.) 't34 Jan. 2 *Holders of rec. Dec. 21
of roe Dec. 21
*Holders
2
Jan.
*50e.
(guar.)
Manufacturers
RochesterCentral Power,6% pt.(qu.) _ el 34 Jan. 2'Holders of rec. Nov.30
81.25 Jan. 2 Holders of rec. Dec. 19a
New York (quar.)
Jan. 2 *Holders of rec. Dec. 12
Rochester Telephone Corp.,com.(guar.)
2 Holders of rec. Dec. 21
Jan.
$1.20
&
Guarantee
5154
Trust
(Oman)
Title
Dec.
12
Jan. 2 *Holders of rec.
First preferred (guar.)
30o. Jan. 2 Holders of rec. Dec. 21
Extra
St. Joseph Ri., L.. H.,& Pow.,Pt.(qu.) •13( Jan. 2 *Holders of rec. Dee. 15
Jan. 2 Holders of rec. Dec. 216
15
United States (guar.)
Jan. 2 *Holders of rec. Dee. 10
Savannah Elec.& Power, pref. A (guar.) "2
'114 Jan. 2 *Holders of rec. Dec. 10
Preferred B (guar.)
Fire Insurance.
•134 Jan. 2 *Holders of reo. Dec. 10
Preferred C (guar.)
81.20 Jan. 9 Holders of rec. Dec. 306
Continental
43540 Jan. 1 *Holders of roe. Nov.25
'
Savannah Gas (guar.)
$1.30 Jan. 9 Holders of rec. Dec. 30a
Fidelity-Phenix
Scranton Electric Co., $6 pref.(quar.) *$1.50 Jan. 2 'Holders of reo. Doe. 9
400 Jan. 2 Dee 19 to Dee. 81
Hanover Fire (guar.)
40e. Dec. 29 Holders of ree. Dec. 15
Seaboard Public) Serv., corn. (special)
50e. Jan. 2 Holders of rec. Dec. 15
(guar.)
Home
Jan. 1 Holders of rec. Dec. la
Second & 3d Sta. Pass. Ry.(Phila.)(qu.) $3
13( Jan. 15 Holders of rec. Jan. 1
Sedalia Water. preferred (guar.)
Miscellaneous.
500. Jan. 11 Holders of rec. Dec. 18
Shawinigan Water az Power(quar.)
6234c Jan, 2 Holders of rec. Dec. 16
Abbott Laboratories (guar.)
- -- $1.50 Jan. 1 Holders of rec. Dec. 21
South Carolina Power,$6 Prof.
of rec. Dec. 21a
Abraham & Straus, Inc.. corn.(tear.).. 8734o Dec. 31 Holders
South Pittsburgh Water.6% pt.(au.). _ 134 Jan, 15 Holders of rec. Jan. 2
134 Feb. 1 Holders of rec. Jan. 150
(quar.)
erreed
ref
15
7% preferred (guar.)
134 Jan.
Holders of rec. Jan. 2
of rec. Dec. 21
*Holders
2
Jan.
"40e
Acme Steel ,quar.)
"111.25 Jan. 19 *Holders of rec. Jan. 8
5% preferred
*21 Dee. 31 *Holders of rec. Dec. 15
Adam Hoffman Co
Southern California Gas Co.,coin.(au.)- •37140 Jan. 15 *Holders of rec. Dec. 31
Dec. 31 Holders of rec. Dee. 150
13-4
Express.
(guar.)
Adams
pref.
•37330 Jan. 1 *Holders of roe. Doe. 31
Preferred A (guar.)
25e Jan. 10 Holders of rec. Dec. 21a
Addressograph-Multograph Corp.(an.)50o. Jan. 15 Holders of rec. Dec. 20
Southern Calif. Edison, orig. Pf.(111.).
Administrative & Research Corp., el. A
8434 Jan. 15 Holders of rec. Deo. 20
Preferred series C (guar.)
25e Jan. 1 *Holders of rec. Doe. 18
•
Southern Canada Pow.,Ltd., pref.(qu.)- 134 Jan. 15 Holders of rem Dec. 19
.134 Dec. 31 *Holders of rec. Dee. 21
Co.. pref. (guar.)
lan.)
(gluar
Aeo
Southwest Tabu). Co., 7% pref.(guar.). •1,i Jan. 1 *Holders of rec. Dec. 19
Jan. 1 Holders of roe. Deo. 15a
134
(guar.)
pref.
Rubber.
Aetna
Jan.
pref.
1
Telep.,
(quar.)Bell
134
Holders of rec. Dec. 19
Southwestern
40e Jan. 2 Holders of rec. Dec. 18a
Affiliated Products (guar.)
Southwestern Gas & Eleo..7% pt.( qU.). 154 Jan. 2 Holders of reo. Dec. 15
15.4 Jan. 2 Holders of rec. Doe. 15
Agnew Surpass Shoe Stores, pref.(au.)
2
Jan. 2 Holders of roe. Dec. 15
8% preferred (quar.)
750. Jan. 15 Holders of roe. Dec. 31a
Air Reduction Co.(guar.)
3 Dec. 31 Holders of roe. Dee, 15
Southwestern Light & Power,com.A(qu.)
10e. Jan. 2 'Holders of rec. Dec. 30
•
Alemco Associates, Inc.(guar.)
$1.50 Jan. 2 Holders of rec. Dec. 15
Preferred (guar.)
250. Jail. 2 Holders of roe. Doe. 17
AIM, A Fisher (guar.)
Southwestern States Telep.,7% p1.(qu.) *134 Jan. 1 *Holders of rec. Dec. 19
Jan. 2 Holders of ree. Dec. ha
134
Corp..
Dye
(guar.)
&
pt.
Chemical
Allied
Springfield Gas & Elec., pref. (guar.)._ _ $1.75 Jan. 2 Holders of roe. Dec. 15
'8734c Jan. 1 *Holders of rec. Dec. 15
Standard Gas & Elec. Co., corn.(quar.)_ 87340 Jan. 25 Holders of rec. Dee. 310 Allied Laboratories, pref. (quar.)
Jan. 1 *Holders of roe. Dec. 15
'134
(quar.)..
Prof.
Amer.,
of
Co.
Aluminum
Jan.
$1.50
25 Holders of rec. Dec. 310
$6 prior preference (guar.)
1 Dec. 22 to Dec. 31
$1.75 Jan. 25 Holders of rec. Dec. 31a Aluminum Goods Manufacturing (guar.) 300. Jan. 31
$7 prior preference (quar.)
*Holders of rec. Dee. 15
urea. Inc.. com.(qu) .500. Dec.
Alpurrnefinerrunesd
Dec. 31 Holders of rec. Dec. 19
Standard Gas Light (N. Y.) common... 2
*Holders of too. Dec. 15
31
Dec.
1%
,
4
(qua,.)
3
Dec. 81 Holders of rec. Dec. 19
Proferred
Holders of rec. Jan. 26
25
Jan.
Alpha Portland Cement, core. (quar.).. 250.
Stand.Pow.& Lt., corn.& corn. B (qu.). 150c Mar. 1 Holders of rec. Feb. 11
•134 Jan. 1 *Holders of rec. Dee. 21
13( Feb. 1 Holders of roe. Jan. le
American Aggregates, pref. (qua,.)
Preferred (guar.)
of rec. Doe. 18
*Holders
1
Jan.
75e
•
Tacony-Palmyra Bdge, comalzpLA (qu.) 75o Dec. 31 Holders of rec. Dec. 10a American Bakeries. class A (quer.)
•134 Jan. 1 *Holders of reo. Dec. 18
7% preferred (quar.)
Telephone Bond & Share, corn. A (tie.).- *50o .lan. 15 *Holders of rec. Dee. 21
2 Holders of rem Deo. 100
Jan.
50o
(guar.)
coin.
Note,
Bank
American
134
Jan.
15
Holders of rec. Dec. 21
Preferred (guar.)
75e Jan. 2 Holders of rec. Deo. 10a
Preferred (guar.)
Jan. 15 *Holders of ree. Dec. 21
"31
Participating preferred (quar.)
40e. Dec. 31 Holders of rec. Dec. 226
Amer. Brake Shoe dcFdy corn.(quaX.)Jan. 2 Holders of reo. Dee. 15
- 1
Tennessee Elec. Pow..5% 1st Pf.
Dee. Si Holders of rec. Dec. 226
134
Preferred (guar.)
134 Jan. 2 Holders of roe. Dee, 15
6% first preferred (quar.)
154 Jan. 2 Holders of rec. Dec. 166
American Can, pref. (quar.)
Jan. 2 Holders of reo. Dec. 15
7% first preferred (quar.)
Jan. I Holders of rec. Doe. lla
154
Prof.
(quar.)
Fdy..
&
Car
Amer.
1.80
2
Jan.
Holders
of rec. Dee. 15
7.2% first preferred (guar.)
Jan. 2 *Holders of roe. Dec. 19
*3
Amer. Cast Iron Pipe, prat
50o Jan. 2 Holders of rec. Dec. 15
8% first preferred (monthly)
134 Dee. 31 Holders of rec. Dec. 215
American Chain, pref. (guar.)
60c Jan. 2 Holders of reo. Dec. 15
7.2% first preferred (monthly)
Jan. 1 Holders of roe. Dee. 12a
500.
Chicle
.American
(qua'.)
"$1.50
1
Jan.
*Holders of rec. Dec. 12
Texas Electric Service,$6 pref.(quar.)
250. Jan. 1 Holders of rec. Dec. 120
Extra
Toledo Edison Co.,7% pref.(mthly.)_ _5 8 1-30 Jan. 2 Holders of roe. Dec. 15a
$1.50 Jan. 2 Holders of rec. Dec. 18a
50o Jan. 2 Holders of reo. Dec. 15a American Express(guar.)
6% preferred (monthly)
,0114 Jan. 2 "Holders of lee. Dec. 21
1 2-30 Jan. 2 Holders of ree. Dee. 15a American Felt,6% pref. (guar.)
5% preferred (monthly)
Jan. 5
American Fork & Hoe, prof.(guar.).- *134 Jan. 15 "Holders of rec.
134 Jan. 2 Holders of ree. Dec. 15
Toledo Light az Pow., pref.(guar.)
s$1
Jan. 1 *Holders of reo. Dec. 16
American
Hardware
(guar.)
(quer.)
Jan.
134
Holders
2
of
pref.
reo. Dee. 120
Twin City It. T., Minneap.
165
Dec.
rec.
of
Holders
81
Dee.
250.
smer. Hawaiian Steamship (quar.)__._
*32.50 Dec. 3 *Holders of rec. Dee. 15
Twin State Gas & Elec., common
35e. Jan. 2 Holders of roe. Dec. 140
Amer. Home Products (monthly)
411.7 Jan. 1 *Holders of rec. Dec. 15
Prior lien stock (quar.)
roe. Dec. lie
of
Holders
31
Dec.
134
(guar.)
•1pi
Locomotive.
pref.
Amer.
Dec. 3 *Holders of rec. Dec. 15
5% preferred (guar.)
. '500. Dec. 3 *Holders of rec. Dec. 24
American Maize Products, cam.(guar.)
Union El. 1.1. & Pow.(I11.),6% pt.(qu.)_ '134 Jan. 2 *Holders of roe. Dec. 15
•134 Dec. 3 *Holders of roe. Dec. 24
Preferred (qua,.)
Union El. Lt.& Pow.(Mo.),6% pr.(qu.) '134 Jan. 2 *Holders of rec. Dec. 15
•1si
134 Dec. 81 Holders of rec. Dee. 15
American
prof.
Jan. 2 *Holders of rem Dec. IS
Mfg.,
(gum%)
7% preferred (guar.)
134 Dec. 81 Holders of res. Dec. 20s
Jan. 1 Holders of reo. Dec. 156 American Optical, 1st pref. (quar.)
24
Union Passenger 11.3%, Phila
Corp.
Sanitary
Stand.
&
Radiator
Am.
Jan.
1
•134
*Holders of ree. Dec. 21
Union Public Service (Minn.) Wm.
150. Dec. 81 Holders of roe. Dec. 11a
Common (qua,.)
*Holders of rec. Dec. 21
Jan
7% Preferred A (tear.)
*40c. Jan. 15
American fly. Trust Shares
Jan. 1 *Holders of rec. Dm 21
4
7% Preferred B (quar.)
Jan. 15 *Holders of reo. Dee. 31
•134
6%
Mill,
pref.
(qu.)Rolling
American
*31.50 Jan. 1 *Holders of rec. Dec. 21
$6 preferred C (guar.)
•133 Jan. 2 *Holders of reo. Dec. 15
Preferred B (quer.)
*31.50 Jan. 1 *Holders of rec. Dec. 21
$6 preferred D (guar.)
$1.25 Deo. 31 Holders of roe. Dec. 10a
Amer. Safety Razor (quar.)
$1.50 Jan. 1 Holders of rec. Dec. 9
Union Traction Co., Phila
$1.25 Feb. 1 Holders of roe. Jan. 154
18340 Jan. 2 Holders of ree. Dec. 2a Amer. Shipbuilding, corn. (qua?.)
United Corporation. corn.(quar.)
"134 Feb. 1 *Holders of roe. Jan. 15
Preferred (guar.)
750. Jan. 2 Holders of ree. Dec. 26
Preferred (guar.)
75e. Jan. 2 Holders of roe. Dee. 104
corn.
American
Snuff,
(guar.)
*Holders
of rec. Dec. 16
United Gas Corp., $7 second pf.(qu.) *31.75 Dec. 31
250. Jan. 2 Holders of roe. Dec. 10a
Common (extra)
13‘ Jan. 1 Holders of rec. Dec. 16
United Gas & Elec. Corp., pref.(quar.)_
134 Jan. 2 Holders of rec. Dec. 100
Preferred (quar.)
United Gas Improvement, corn.(guar.). 30o Dec. 31 Holders of rec. Nov. 30a
Dec. 31 Holders of roe. Dec. 154
$1.25 Dec. 31 Holders of roe. Nov.300 Amer.Steel Foundries. pref.(quar.)-- 134 Jan.
Preferred (guar.)
1 Holders of rec. Dee. 12
50o.
25o Feb. 1 Holders of rec. Jan. 154 American Stores (anat.)
United Light & Power, corn. A & B (qtr.)
Jan. 2 Holders of roe. Dec. 5a
(quar.)
corn.
Refg.,
134
Sugar
Amer.
156
Holders
2
of
Jan.
$1.50
roe. Dec.
Preferred (guar.)
Holders of roe. Dec. 54
2
Jan.
154
(quar.)
Preferred
United Light & Rys.(Dcl.)American Thermos Bottle. pref. (an.).- *8733c Jan. I 'Holders of roe. Dec. 19
•58 1-3e Jan. 1 *Holders of rec. Dec. 15
7% prior pref. (monthly)
of reo. Nov.304
Holders
1
Jan.
12340
preferred
Thread,
American
"53c Jan. 2 *Holders of reo. Dee. 15
6.36% prior we. (monthly)
114 Jan. 2 Holders of roe. Dec. 10a
American Tobacco. pref. (quar.)
'50c Jan. 2 *Holders of rec. Dec. 15
6% prior prat. (monthly)
(quar.) d144 Jan. 15 Holders of rec. Jan. 5
pref.
Co.,
Founders
Type
Amer.
2
of
Jan.
&
'31
A
*Holders
Cl.
rec.
(quar.)
Utilities,
B.
Dec.
26
Ohio
United
'3734c Jan. 2 *Holders of roe. Dee. 15
American Wringer (quar.)
'134 Jan. 2 *Holders of rec. Dec, 26
6% preferred (guar.
American Yvette Co., Inc., pref.(1U.)-- *50c. Jan. 1 *Holders of rec. Dec. 15
United Public Utilities,$6 pref. (quar.). 81.50 Jan. 2 Holders of roe. Dec. 15
60c. Jan. 2 Holders of rec. Dec. 250
(guar.)
corn.
Corp.,
Cap
Anchor
Holders
2
of
Jan.
15
11.4334
Dec.
rec.
s5.75 preferred (quar.)
$1.62t Jan. 2 Holders of roe. Dec. 21a
Preferred (guar.)
*31.75 Jan. 1 *Holders of roe. Dee. 19
nitedTeleP.(Del.). 87 first pt.
134
*134
134
4
WO
WO
*131
.13i
4286
FINANCIAL CHRONICLE
Per
When
Cent. Payable.
Books Closed.
Days Inclusive.
[VoL. 133.
When
Per
Books Closed.
Name of Company.
Cent. Payable.
Days Inclusive.
Miscellaneous (Continued).
Miscellaneous (Continued).
Andover Realty,8% pref. (guar.)
'134 Jan.
Chicago Gulf Corp.. cl. A (au.)(No.1)-- *12 Mc Jan. 1 *Holders of ree. Deo. 20
of rec. Dec. 20
Anglo National Corp., corn. cl. A (qu.). 50c. Jan. 1 *Holders
Chic
15 Holders of rec. Jan. 4
Rye & Un. Eitk.Yds..com(qt1) 2M Jan. 1 Holders of rec. Dec. 15
Apex Elec. Mfg., prior pref. (qu.)
134 Jan. 1 Holders of rec. Dec. 20a
Preferred (guar.)
134 Jan, 1 Holders of reo. Dec. 15
Apponaug Co.. corn. (guar.)
*500. Jan, 1 'Holders of rec. Dec. 15
Chicago Railway Equipment, pref. (MI.) 4334c Deo, 31 Holders of roe. Dee. 20
634% preferred (guar.)
4.144 Jan. 1 *Holders of rec. Dee. 15
Chicago Towel, corn, (guar.)
"81.25 Jan. 2 *Holders of reo. Doe, 21
Armour & Co.of Del., pref.(guar.)
134 Jan. 2 Holders of rect. Dec. 10a
Preferred (guar.)
"31.75 Jan, 2 *Holders of rec. Dee, 21
Arnold Print Works, let dr 2nd pfd.(em.) •14(
Jan, 1 *Holders of rec. Dec. 20
Chicago Transfer & Clear.,6% pf.(qu.)_ '134 Jan. 2 "Holders of rec. Dee, 15
Participating preferred (guar.)
•87lic Jan. 1 *Holders of tee. Dec. 20
Chicago Yellow Cab (guar.)
50o. Mar. 1 Holders of rec. Feb. 19a
Art Metal Construction (guar.)
10e. Jan. 2 Holders of tee. Deo. 190 Chrysler Corp.. common (guar.)
250. Jan. 4 Holders of rec. Dee. be
Assoc. Bankers Title Mtge. Guar. WO "37)So
Jan. 1'Holders of rec. Dee. 20
Churchill Hosiery Corp
•50c. Jan. 4 'Holders of rec. Dec. 15
Associated Breweries of Can.,corn.(tot)
1150. Dee. 31 Holders of rec. Dec. 15
CIncirman Advertising Products (nmar.) 'The Jan. 1 *Holders of roe. Dee. 19
Preferred (guar.)
1134 Jan. 1 Holders of rec. Dec. 15
Cincinnati Union Stock Yards (quar.)
•40e Dec. 31 *Holders of tee. Dee, 18
Associated Industrial Bankers. el. A (go.) •650.
Jan. 2 *Holders of rec. Dee. 15
Cities Service Bankers shares
• 11.46c Jan. 2 *Holders of roe. Dee. 15
Cls.ss B (guar.)
Jan. 2 *Holders of rec. Dec. 15
Cities Service Co., cons.(monthly)
234e Jan. 2 Holders of tee. Dec. 150
Associates Investment Co., corn.(qua. 11•20. Dee. 31
Holders of rec. Dee, 21
Common (payable In common stk.)._
fli Jan. 2 Holders of rec. Dee, 15a
Preferred (guar.)
15( Dec. 31 Holders of tee. Dec. 21
Preferred B (monthly)
50, Jan. 2 Holders of rec. Dee. 15a
Atlantic Gulf dr W.I.13.13.Linee.
Prof. and preference BB (monthly)
18.(111.) 134 Dec. 30 Holders of reo. Die. 10
50e. Jan. 2 Holders of ree. Dee. 15a
Atlantic Ice & Coal, pref. A (quar.)
"75o. Jan. 1 *Holders of rec. Dec. 21
Common (monthly)
234e. Feb. 1 Holders of tee. Jan. 150
Preferred
'354 Jan. 1 *Holders to rec. Dec. 21
Corn.(payable in com.stk.)(mthly.)
fIS Feb. 1 Holders of tee. Jan. 16a
Atlas Stores Corp.. pref. (guar.)
"750. Jan. 2 *Holders of rec. Dec. 15
Preferred B (monthly)
5o. Feb. 1 Holders of roe. Jan. 150
Auburn Automobile (guar.)
Jan. 2 Holders of rec. Dec. 220
$1
Prof. and preference B B (monthly)
500, Feb. 1 Holders of tee. Jan. 154
Stock dividend
e2
Jan. 2 Holders of rec. Doe. 22a CityInvesting common
234 Jan. 4 Holders of rev. Doe. 286
Austin Nichols & Co.. prior A (guar.)
3734c Feb. 1 Holders of rec. Jan. 150
Preferred (guar.)
154 Jan. 2 Holders of rec. Dec. 28
Automobile Finance, prof
"87310 Jan. 15"Holders of rec. Deo. 31
City Union Cont.corn.(guar.)
Me. Jan. 15 *Holders of ree. Dee. 31
Axton-Fisher Tobacco, cl. A (guar.) - - •1300. Jan. 1 *Holders of
Clark (D. L.) Co.(guar.)
rec. Dec. 15
'31 Mc Jan. 1 *Holders of rec. Dee. 15
Preferred (guar.)
Jan.
*Holders
'134
1
of rec. Dec. 15
Claude Neon Elec. Prod.,corn,(quar,).- *400. Jan. 1 'Holders of reo. Dec. 20
Babcock dr Wilcox (guar.)
1 Jan. 2 Holders of roe. Dec. 190
Preferred (guar.)
*35c. Jan. I *Holders of reo. Dee. 20
Balaban & Hats, corn.(quar.)
•750. Dee. 26 *Holders of roe. Dee. 4
Cleveland Union Stock Yds, own.(qua_ 3734o Deo, 31 Holders of
reo. Dee, 2I6
Preferred (guar.)
*1 M Deo, 20 Hoiden of roe. Dec. 4
Clorox Chemical, class A & B (guar.).- •50e Ian. 1 *Holders of
Baldwin Rubber. class A (qua?.)
ree. Doe. 20
'3714c Deo, 31 Holders of rec. Dec. 21
Cluett,Peabody & Co.,Inc., pref.(qu.). 134 Jan, 2 Holders of rec.
Doe. 216
Bane Ohio Corp.(guar.)
•35e. Dec. 31 Holders of rec. Dee. 19
Coats (J. & P.), Ltd.Bankers Investment Trust of AmericaAmer. dep. Ma,for ord. reg. she.--• rallici Jan. 7 *Holders of rec. Nov.
20
Debenture stock (guar.)
*15e. Dee. 31 Holders of roe. Dec. 18
Coca
Cola
Bottling Co.of St. L.(guar.)
40c. Jan. 15 Holders of rec. Jan. 5
Barber(W. H.) Co., 7% pref. (guar.)._ •151 Jan, 1 *Holders of rec. Dec. 20
Quarterly
*400. Apr. 15'Holders of rec. Apr. 5
Barker Bros Corp.,634% pref.(qu.)
154 Jan. 1 Holders of rec. Dec. 140
Quarterly
*400.
July
15 *Holders of ree. July 5
Bayuk Cigars. Inc.. corn. (quart)
3734c Jan. 15 Holders of roe. Dec. 310
Quarterly
•40o. Oct. 15 *Holders of tee. Oct. 5
First preferred (guar)
151 Jan. 15 Holders of roe. Dec. 31a Coca-Cola Co., corn. (guar.)
31.75 Jan, 2 Holders of tee. Dee, 124
Beaton & Caldwell Mtg.(monthly)
•12)40 Dee, 31 Holders of rec. Dee. 30
Common
(extra)
250. Jan, 2 Holders of reo. Dec. 126
Beatrice Creamery. corn. (guar.)
al
Jan. 2 Holders of rec. Dec. 14a
Class A (guar.)
134 Jan. 2 Holders of rec. Dec. 120
Preferred (guar.)
151 Jan. 2 Holders of roe. Dee. 14a Coca-Cola International, earn.
$3.50 Jan. 2 Holders of roe. Dee. 124
(quar.)
Beech-Nut Packing, corn.(guar.)
750. Jan, 1 Holders of roe. Dec. 12a
Common (extra)
50o. Jan. 2 Holders of ree. Dee. 124
Bell View Oil Syndicate (guar.)
•50o. Jan. 2 Holders of rec. Dec. 21
Class A (guar.)
'13 Jan. 2 Holders of rec. Dee. 12
Bendix Aviation Corp.(guar.)
250. Jan. 2 Holders of rec. Dee. 10o Cohen (Dan) Co.
•40o. Jan. 2 *Holders of rec. Dee, 15
(guar.)
Bethlehem Steel, corn. (quar.)
500. Feb. 15 Holders of roe. Jan. 18a Colgate-Palmolive-P
eet
134 Jan, 1 Holders of reo. Dec. 104
Preferred (guar.)
154 Jan. 2 Holders of rec. Dec. 4a Colonial Finance Corp..Co., pref. (qu,)
pref. (qu.).__ 144 Jan. 1 Holders of rec. Dee. 26
Bickford's. Inc.. Common (guar.)
30e. Jan. 2 Holders of rec. Dec. 24
Colt's Patent Fire Arms Mfg.(go.)
"38e. Dec. 31 *Holders of rec. Dee. 12
Preferred (quar.)
62 Mc Jan, 2 Holders of rec. Dee. 24
Commerce Investment Inc. (quar.)__. •150. Jan. 1 Holders of tee.
Bird dc Son (guar.)
Deo. 25
"25c. Jan. 2 Holders of tee. Dec. 28
Commercial Credit Co., corn.(guar.)--400. Deo, 31 Holders of rec. Doe. ill
Bliss(E.W.)Co6M% first preferred (guar.)
134 Dee, 31 Holders of reo. Dec. lba
Corn.(pay.In oom.stock)
12 Jan. 2 Holders of rec. Dec. 21
7% first preferred (guar.)
4334e. Dec. 31 Holders of rec. Doe, lie
Bison Bros. Tobacco. pref. (guar.)
'134 Dee. 31 Holders of too. Dec. 24
8% class B preferred (guar.)
50c. Deo, 31 Holden of too. Dee. III
Blumenthal (S.) & Co.. pref.(quar.)1,1 Jan. 2 Holders or rec. Dec. 15a
$3 class A convertible (guar.)
75e. Dec. 31 Holders of ree. Doe. 11a
Bohn Aluminum & Braes (guar.)
8734e Jan, 2 Holders of reo. Dee. 15a Commercial Finance Corp., pref
850c. Jan, 20 Holders of roe. Dec. 31
Borg-Warner Corp., corn. (guar.)
25e. Jan. 2 Holders of rec. Dec. 150 Commercial Invest. Trust, corn.
50e. Jan. 1 Holders of reo. Dee. 5a
(q11.)
Preferred (guar.)
*154 Jan. 2 Holders of rec. Dec. 15
7% first preferred (guar.)
134 Jan. 1 Holders of tee. Dec. 54
Boston Herald-Traveler Corp. (quar.)
*10o. Jan. 2 Holders of rec. Dec. 23
034% first preferred (guar.)
154 Jan, 1 Holders of ree. Deo. 5a
Boston Personal Property Trust (guar.). 25c. Dee. 30 Holders of
Dee.
rec.
Cony.
lb
pref. opt. ser. 1929
(p) Jan, I Holders of reo. Dee. 5a
Boston Storage Warehouse (guar.)
r1,4 Dec. 31 Holders of reit
Commercial Solvents, own.(quar.)
Dec. 23
25e. Deo, 31 Holders of roe. Dec. 10a
Boston Wharf Co
334 Dec. 31 Holders of rec. Dec. 1
Community State Corp., Mass A (guar.) •1234e D.31'Holders of roe. Dee. 23
•1
Bourbon Stock Yards (guar.)
Jan. 2 Holders of rec. Dec. 24
Conduits, Ltd., pref. (guar.)
134 Jan. I Dec. 24 to Jan. 1
Brandram-Henderson. 7% pref. (guar.). '134 Ian, 2 *Holders of ree. Dec.
Congress Cigar (guar.)
250. Dec. 30 Holders of roe. Dec. 140
Brandtjen dr Kluge, 7% pref.(guar.).- *8714c Jan. 1 *Holders of rec. Dec. 1
Conn. Gas& Coke Secure.,corn.(qua?,). "20e. Jan. 2 Holders of roe. Doe, 15
22
Brantford Cordage. prof. (quar.)
Jan. 2 Holders of reo. Dec. 20
2
83 preferred (guar.)
•750.
Jan. 2 Holders of roe. Dee. 15
Briggs & Stratton Corp. (guar.)
50c. Jan. 10 Holders of rec. Dec. 316 Consolidated Bakeries of
Can., com.(qu) 250. Jan. 2 Holders of rect. Dec. 19
Brillo Mfg.. cons. (guar.)
15c. Jan. 2 Holders of rec. Dec. 15a Consolidated Cigar Corp.,
(tom. (guar.). 31.25 Jan. 7 Holders of rec. Doe. 280
Class A (guar.)
50e. Jan. 2 Holders of roe. Dec. 15a Consolidated Film Industries.
pref.(qu.) 500,Jan. 2 Holders of reo. Dec. 10a
British-Amer.011 reg.shares (guar.)_ _ _
120c Jan, 2 Dec. 13 to Doe. 31
Consolidated Laundries.corn.(guar.).-25o. Jan. 1 Holders of rec. Doe. 15a
Bearer shares
1200. Jan. 2 Holders of coup. No. 7
Preferred (guar.)
• 31.875 Feb. 1 *Holders of rec. Jan. 15
British Mtge.& Trust Corp. of Ont., pi_ •38
Jan. 2 Holders of rect. Dee. 19
Consolidated
Mining
&
181.25
Jan. 15 Holders of rec. Dec. 23
Smelting
Broad Street Investing (guar.)
•25e. Jan. I *Holders of rec. Dee. 18
Stock dividend
CS Jan. 15 Holders of rec. Dee. 23
Bucyrus Erie Co., 7% pref. (quar.)-.... 1,4 Jan. 2 Holders of tee. Dec.
5a Consolidated Paper, pref. (quay.)
Jan.
1 Holders of reo. Dee. 21
•17340
Cony. pref.(adjustment div.)
20 5-8e Jan. 2 Holders of rec. Dec. 50 Continental Baking,
pref. (guar.)
$2 Jan. 1 Holders of roe. Dee. 140
Bucyrus-Mordgban Co., class A (guar.). "450. Jan. 1 *Holders of rec. Dee,
19
Continental Casualty (guar.)
Holders of rec. Dee. 15
•400.
Jan.
2
Clasp A (extra)
"20c. Jan. 1 *Holders of rec. Dee. 19
Corporation Securities of Chic(in stock). •11 m Dec. 30 Holders of roe. Nov.21
Clara B
$1.10 Ian. 1 Holders of rec. Dco. 19
Courier Post Co.,corn,(guar.)
42
Jan, 1 Holders of rec. Dec, 15
Budd Wheel, let pref. (guar.)
141 Dee. 31 Holders of reo. Doe, 280
7% preferred (guar.)
131 Jan. 1 Holders of rec. Dee. 15
First preferred (extra)
750. Dec. 31 Holders
roe. Doe. 280 Counselors Security Trust (qua,,)
"400. Jan. 2 Holders of roe. Doe, 21
Buffalo General Laundries. pf.(qu.)-- *56 34 c Dec. 31 'Holders of
of rec. Dee. 18
Cream of Wheat Corp.(guar.)
50e. Jan. 2 Holders of tee. Deo. 190
Buffalo Natural Corp., 7% pref. (guar.) •14.4 Dec. 31 Holders of rec. Dee,
Extra
24
25e. Jan. 2 Holders of rec. Dec. 19a
Building Products, Ltd., el. A & B (qu.) 500. Jan. 2 Holders of rec. Dee, 22
Creameries of America, Inc. (guar.).
•25o. Jan. 2'Holders of rec. Dee. 21
Burger Bros.. corn. (guar.)
*12)4e Jan. 2'Holders of rec. Dec. 15
Creamery Package Mfg.corn.(gear,).,.. •1500. Jan. 11 Holders of ree. Jan.
8% preferred (guar.)
1
*11
Jan 2 *Holders of rec. Deo 15
Preferred (guar.)
*134 Jan. 11 'Holders of reo. Jan. 1
Burns Bros., pref. (quar.)
134 Jan. 2 Holders of roe. Dee. 150 Credit Utility
Banking Corp., el. A (qu.) 37M0 Jan. 10
Burt (F. N.) Co., corn. (quar.)
075e. Jan. 2 Holders of rec. Dec. 15
Crowley-Milner & Co
*20o. Doe. 31 'Holders of roe. Dee, 25
Preferred (guar.)
u134 Jan. 2 Holders of reo. Dee, 15
Crown Trust (Montreal) (quar.)
'154 Jan, 2 Holders of rec. Dec. 31
Bush Terminal, corn.(qua?.)
6210c Feb. 1 Holders of roe. Jan. 80 Crown-Willamette
Paper. 1st pf.(qu.)_ _
31 Jan. 1 Holders of rec. Dec. 120
Debenture stock (guar.)
Jan,
15 Holders of roe. Dec. 30a Crown Zellerbaeh Corp. Prof. (quar.).. 37140.
151
Mar. 1 Holders of roe. Feb. 13
A
Bush Terminal Bides.. pref.(quar.)
131 Jan. 2 Holders of roe. Dec. 16a
Preferred B (guar.)
37Me. Mar. 1 Holders of roe. Feb. 13
Byers (A. M.) Co.. pref. (guar.)
134 Feb. 1 Jan. 17 to Jan. 28
Crucible Steel, pre/. (guar.)
154 Dec. 81 Holders of rec. Deo. 150
Byllesby (H. M.) de Co., el. A & B (q11.) 50e. Jan. 15 Holders of rec. Dec. 15
Crum & Forster, corn.(qua?.)
•280. Jan. 15 Holders of roe. Jan. 5
Preferred (guar.)
50o. Dec. 31 Holders of rec. Dee, 16
Preferred (guar.)
*2
Dec. 31 Holders of rect. Dee. 21
Calambe,Sugar Estate.corn.(guar.) -- *400. Jan. 2 'Holders of rec. Dec. 15
Preferred (guar.)
•2
Mar.31 Holders of tee. Mar. 21
7% preferred (quar.)
"35c Jan 2 *Holders of rec. Dec. 15
Crystal Tissue Co.,8% prof
*4
Jan. 1 Holders of roe. Dec. 31
California Ink, class A dr B (guar.)
*50e. Jan. 2 "Holders of reo. Dec. 21
Curtis Mtg.(Ohio) (guar.)
280. Jan, 2 Holders of rec. Doe. 18
Cambridge Investment, el. A & B (qu.) •25e Jan. 2 "Holders of rec. Dec. 21
Curtis Publishing pref.(guar.)
$1.75 Jan. 1 Holders of tee. Dec. 194
Canada Bread, 1st pref. (guar.)
131 Jan. 2 Dec. 15 to Jan, I
Davenport Hoe. Mills, Inc.. corn,(qu.). 500. Jan. 1 Holders of
rec. Dee. 21
Canada Bud Breweries, Ltd.(guar.)-280. Jan. 15 Holders of roe. Dee, 31
Preferred (guar.)
M Jan. 1 Holders of rec. Dec. 21
Canada Cement, preferred (guar.)
*134 Dec. 31 Holders of roe. Nov. 30
Davidson Co., pref. (guar.)
'134 Dec. 81 'Holders of rec. Dec. 20
Canada Dry Ginger Ale (qua?.)
30o. Jan. 15 Holders of tee. Jan. 2a
Preferred (guar.)
'134 Jan. 1 Holders of rec. Dec. 20
Canada Packing, 7% pref. (guar.)
'134 Dec. 31 "Holders of rec. Dee, 15
Deco Refreshments, 7% pref.(guar.)
•87140 Dee. 31 Holders of roe. Dec. 21
Canada Permanent Mtge.(guar.)
Jan. 2 Holders of tee. Doe, 15
3
Deisel-Wemmer-011bert Co., pref
'3I4 Jan. 2 Holders of roe. Doe, 15
Canada Trust Co
Holders
Jan.
2
of
Doe.
De
ree.
5
Long Hook & Eye (guar.)
15
•50o. Jan. 2 *Holders of rec. Doe. 19
Canadian Canners, Ltd., common (qu.)
Jan. 2 Holders of rec. Doe, 15
Dennison Manufacturing. class A (qu.)_
154 Dec. 31 Holders of rec. Doe. 19
6% 1st preferred (guar.)
Detroit Bankers Co.(guar.)
M Jan. 2 Holders of rec. Dee. 15
•850. Dee. 31 *Holders of tee. Doe. 21
Convertible preference (guar.)
Devoe & Reynolds Co., Inc.117c. Ian. 2 Holders of rec. Dec. 15
Canadian Car dr Fdy., coin. (quar.)--.- 125e. Feb. 29 Holders of roe. Feb. 15
Common A and B (guar.)
15o. Jan. 1 Holders of ree. Dec. 21a
Preferred (guar.)
1440. Jan. 11 Holders of reo. Dec. 28
First and second preferred (quar,).._
154 Jan. I Holders of rec. Dee. 21a
Canadian Celanese, Ltd., part. pref.(411) 134 Dec. 31 Holders of roe. Doe. 15
Diamond Shoe. corn,(guar.)
Jan. 2 Holders of roe. Dee. 21
25e.
Canadian Cottons, Ltd., Pref. (quar,).- *HIS Jan, 4 *Holders of tee. Doe. 19
634% preferred (guar.)
154 Jan. 2 Holders of ree. Dee. 21
Canadian General Electric,
$I Jan. 1 Holders of roe. Dee. 15
Second preferred (guar.)
corn.((OW
Jan.
30e.
2 Holders of ree. Dee. 21
Preferred (guar.)
Distributors Group. Inc. (guar.)
874o. Jan. 1 Holders of reo. Dec. 15
250. Jan. 2 Holders of rec. Dee. 21
Canadian International Trustee Shs_•18 31780. Jan. 2
Dome Mines, Ltd.(guar.)
25e. Jan. 20 Holders of rec. Dec. 316
Canadian 011 Cue.. Ltd.. pref.(guar.).- •2 Jan. 2 *Holders of nso. Dee. 19
Dominion Glass, corn.(guar.)
*1 34 Jan, 2 Holders of roe. Dec. 15
Canadian Westinghouse. Ltd.,corn (qu.) •50e. Jan. 1 'Holders of rec. Doe. 21
Preferred (guar.)
*134 Jan, 2 Holders of roe. Dec. 15
Common (extra)
Dominion Rubber. pref. (guar.)
*81 Jan. 1 *Holders of roe. Doe. 21
154 DM. 31 Holders of reo. Dec. 23
Caned. Wireb, Boxes. Panic.
Dominion Securities (Bich.. Va.)
25e. an. 2 Holders of roe. Dee. 15
rd. A OW
413 Dec. 31 *Holders of rec. Dee. 21
Canfield Oil. corn. & pref.
Dominion Stores, Ltd., corn. (guar.).- u30c. Jan. 2 Holders of
154 Dee. 31 Dec. 22 to Doe, 25
(guar.)
roe. Dec. 150
Cannon Mills (guar.)
Common (extra)
40e. Jan. 1 Holders of roe. Dec. 186
u300. Jan. 2 Holders of reo. Dec. 150
Canton Co.of Baltimore
•4
Dominion Textile, corn.(guar.)
Dec. 31 'Holders of rec. Dec. 29
131.25 Jan. 2 Holders of roe. Dee. 15
Capital Admin. Co.. Ltd., pref.
Preferred (guar.)
750. Jan. 1 Holders of tee. Dee. 180
(qu.)-£154 Jan, 15 Holders of too. Dee. 31
Carnation Co., common
Dow Drug. Prof. (guar.)
750. Jan. 2 Holders of toe. Dec. 21
'134 Jan. 5 *Holders of tee. Dee. 21
Preferred (guar.)
primer Corporation (guar.)
•15( Jan. 2 *Holders of tee. Dec. 21
Jan. 1 Holders of rec. Nov.28
al
Carpel Corp. (guar.)
Dufferin Paving dc Crushed Stone. let
4,50c. Jan. 1 *Holders of rec. Dec. 21
Carreras, Ltdpref. (guar.)
131 Jan, 2 Holders of roe. flee. 23
Amer. dep. rcts. for A & B ord. she.... "w20 Dec. 28 *Holders of roe. Dec. 9
Dunean Mills, prey.(guar.)
'154 Jan. I *Holders of reo. Doe.
Amer. dep. rots, for ord. reg.
l'w20 Dec. 28 *Holders of reo. Dee. 9
Dunham (J. H.)& Co..corn.(guar.).-- •134 Jan. 1 'Holders of roe. Dee. 23
18
Case (J. 1.) Co.. pref. (guar.) shares._
134 Jan. 1 Holders of tea. Dec. 12a
First preferred (quar.)
•134 Jan. 1 'Holders of reo. Dec. 18
Celanese Corp. of AmericaSecond Preferred (quar.)
'134 Jan. 1 "Holders Of tee. Dec. 18
7% prior preferred (guar.)
Jan. 1 Holders of rec. Dee. 15
DIMIBM Silk, pref. (guar.)
134
2
Jan. 1 Holders of reo. Dee. 166
Central Aguirre Associates (guar.)
3734c Jan. 2 Holders of rec. Doe. 18e Du Pont(E.I.) de Nemours&
Central Cold Storage (guar.)
*20c. Dec. 31 *Holders of rec. Dees 24
Debenturestock (guar.). .
lIS Jan. 25 Holders of rm. Jan. Sc
Chain Store Products. pref. (guar.)
.37 Me Jan. 4 'Holders of rec. Dec. 19
Dutton(A.C.) Lumber Corp..com.(qu.) •134 Dec. 31
Champ.Coated.Pap.pf.&spec. pf.(qu.) '154 Jan. 2'Holders of rec. Dec. 19
Preferred (guar.)
0151 Dec.
C
@FedFRASER