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SATURDAY,DECEMBER 61930.
VOL. 131.
financial Citranicle
PUBLISHED WEEKLY
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Published every Saturday morning by WILLIAM B. DANA COMPANY.
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Change of Address of Publication.
The Commercial & Financial Chronicle,
having long suffered from inadequate
facilities for handling its growing size
and growing subscription list, has moved
Into new and larger quarters, and is now
located at
William Street, Corner Spruce,
New York City.
P. 0. Box 958, City Hall Station.
The Financial Situation.
The most disquieting feature in the industrial and
financial situation at the moment is the great depreciation which is taking place in the bond market,
and more particularly in railroad bonds. It is bad
enough to see stock prices going all to smash, but
when bond prices follow the same destructive course
there is reason for the gravest apprehension. Everyone is now, as for a long time past, debating with
great earnestness the probability of an early revival
of trade, but it may be laid down as an incontrovertible proposition that there is not going to be
any enduring change for the better in the state of
trade so long as bond prices, and especially railroad
bonds, keep steadily going down as they have in
recent weeks.
Therefore, it becomes a matter of the utmost concern to consider this matter of the downward plunge
in bond values—and be it known that the use of the
word "plunge" involves no overstatement of what
has been going on, inasmuch as certain'bond issues
have been declining in quite as violent fashion as
NO. 3415.
has become the custom in the stock market, and we
believe we are correct in saying that no parallel to
this collapse of the bond market, for nature and
extent, is to be found in the records of financial and
industrial crises in the past.
During the early months of 1930, following the
stock market crash of the autumn of last year, bond
prices, which had been persistently going down for
about two years, owing to the disfavor into which
bonds had fallen during the speculative craze which
was carrying stock prices to such dizzy heights—following this period of shrinking bond prices, there
came, in the early months of 1930, a strong reaction
in favor of bonds, previously discredited, and in the
recovery in bond values which thereupon ensued it
really looked as if bonds were once more to resume
their rightful place as a form of investment ranking
deservedly high. Bond prices then steadily advanced, and the rise was looked upon as one of the
most encouraging signs of the times in indicating
(as it then seemed) a return to sober common sense
on the part of investors. It was also looked upon
as a certain forerunner of a coming improvement in
security values.
But all these bright hopes have now been dissipated, and we are now confronted by a situation
where the condition of the bond market involves
threatening possibilities.
As a few illustrations, St. Louis-San Francisco
2s series A, which the early part of October were
1
4/
4, yesterday sold down to
still selling as high as 931/
the recent additions
instance
this
2. Perhaps in
1
75/
have
fully distributed,
been
issue
yet
not
bond
to this
yet this road is paying dividends on common and
preferred stocks alike, and the experience of many
other roads has been equally unfortunate. Erie 1st &
ref. 5s of 1975, as against 93% Oct. 2, got down to
71½; Missouri Pacific general 4s yesterday sold
4 on Oct. 1; Chic. Mil. St.
2against 813
1
as low as 67/
2as against
1
Paul & Pac. 5s series A sold down to 67/
% last March; Chicago Great
2in October and 963
1
87/
Western 4s sold at 64 against 7414 Oct. 1; Balt. &
2s have dropped from 10114 Oct. 2 to
1
Ohio cony. 4/
92 Dec. 4; Southern Railway general 4s series A, as
against 89% Oct. 2 and 93 last March, sold down
to 84%. A bond of such extraordinary strength
as the Atchison general 4s, with P41,629,300 stock
ahead of them,on which dividends of 10% per annum
are paid, yesterday sold at 96% as against 99%
Oct. 3. And these illustrations might be multiplieil.
almost indefinitely; and to them might be added still
other bond issues of inferior grade where the decline
within a very short space of time has been 20@31}
points, and even more, not any of them in default
of interest payments, and apparently not likely to
default in the near future.
3574
FINANCIAL CHRONICLE
The bonds enumerated are all those of leading railroad systems, and the railroads have suffered beyond
every other branch of activity in the present great
prostration of trade and business. We may take for
purposes of illustration those two great East-andWest trunk lines, the New York Central and the
Pennsylvania RR. The Pennsylvania RR. earned
gross in the 10 months ending Oct. 31 1930 of only
$493,858,289 as against $589,640,282 in the same 10
months of 1929, and had net operating revenue for
the 10 months of 1930 of only $127,122,003 as against
171,703,203 in the same period of 1929. It will be
seen the loss has been $95,781,993 in gross and $44,581,200 in net. In like manner the New York
Central has suffered a decrease of $91,427,876 in
gross and of $40,759,678 in net in the first 10 months
of 1930. Here, then, are two big railroad systems
which have had their combined gross earnings cut
down in amount of $187,209,869, and the net earnings from operations in amount of $85,340,878. This
gives an idea of the severity of the depression under
which the railroads are laboring. On many important roads net income the present year is scarcely
more than 50% of last year, and there are few railroads that have not seen their net income diminished
in amount of 20 to 30%.
But the railroads are not suffering merely by
reason of the business depression, which is common
to the entire business world of the country. They
are suffering from a long period of ill treatment,
and the trade depression comes as the last straw.
Relief, therefore, to this great transportation agency
has become the imperative requirement of the hour,
S and it was high time that the railroads took steps
for their relief and protection as is now being done.
With the oppression under which they have labored
so long continued and trade depression also making
such heavy inroads in their traffic and revenues,
they must inevitably be driven to the wall unless
:they get that restoration of their rights for which
they are now so earnestly contending. Their very
existence is at stake, and it is a matter of life and
•• death with them. Congress should heed their prayer
and speedily enact the needed legislation. Unless
this is done,their solvency will become impaired, and
• then they will no longer be able to function in such
a way as to promote the country's growth and development—indeed, will be unable to meet the ordinary
everyday requirements of business. And when that
• point is reached, trade and industry in the United
States will itself come to a standstill. Accordingly,
we repeat what we said at the outset, that unless
the railroads are restored to their rightful place,
now that the predicament in which they find them• selves has become so conspicuously apparent through
the great depreciation in the market value of their
bond issues it is idle to hope for any trade revival.
They are not asking for subsidies or any extraneous
they are simply asking that they be allowed
aid;•
to function in a normal, ordinary way, so they may
be able to earn by their own efforts their means of
subsistence and existence.
In these circumstances it is certainly encouraging
to find that sentiment is growing so strongly in
their favor—that virtually everyone is recognizing
and appreciating the justness of their cause. President Hoover,in his annual message, refers only very
briefly io the needs of the railroads, but what he
says goes straight to the point, and is full of significance and meaning. "In the public interest,"
(VOL. 131.
he says, "we should strengthen the railways, that
they may meet our future needs:" He also believes
in facilitating the work of merger and consolidation, saying: "We have determined upon a national
policy of consolidation of the railways as a necessity of more stable and more economically operated
transportation. Further legislation is necessary to
facilitate such consolidation." Former President
Coolidge has also returned to a consideration of the
subject. Discussing the matter in his daily talk in
the New York "Herald Tribune" on Wednesday, he
delivered himself of the following words so pregnant
with meaning:
"The report that the railroads are to assume a
more aggressive attitude in the assertion of their
rights and the protection of their property is an
encouraging development.
"A generation ago the railroads were found to be
interfering too much in governmental action which
in no way concerned them. They were charged with
being in politics when they should have been only
in transportation. In reforming themselves they
went so far in the opposite direction that their business and,therefore, the public welfare, have suffered.
"Railroad representation at Washington has been
able and wise, but under the present policy not
always assertive. The important legislation of 10
years ago came from the initiative of a voluntary
association of savings banks and insurance companies holding railroad securities. If the railroads
can now speak for themselves, it indicates a return
of sane public confidence in transportation management which will benefit the country. Holding onetwentieth of the national wealth, the railroads can
do more for the welfare of the wage-earner, agriculture, and industry than any other single agency. We
do not want any return of railroad political activity,
but we do need such action as will protect their
interests in legislation and regulation."
Most important of all, perhaps, is the sympathetic
attitude shown by the Inter-State Commerce Commission in its annual report to Congress the present
week. Time was when the Commerce Commission
appeared to think it a public duty to assume an
attitude of antagonism and hostility to the carriers.
But in more recent years it has shown adherence
to broader views, and its decisions and recommendations are often highly constructive and wholly free
fram bias. In the present instance it comes out
flatly for abandonment of the provision in the
Transportation Act which extends to the Government the right of recapture of excess railway operating income. This is a step obviously in the right
direction. But the Commission does not rest there.
With income so diminutive as at present, the situation now is that there will not be income enough to
provide for the ordinary operating expenses and
admit of the full functioning of the roads for their
own protection and in the interest of the general
welfare.
The Board is fully alive to these matters, and after
referring to the enormous decline in the gross and
net earnings of the roads, suggest remedial legislation for their protection against outside competitions much along the lines suggested by the roads
themselves and which we discuss in a separate article
on a subsequent page. It is to be hoped that Congress will give heed to what they say in this respect.
The Commission's conclusions should certainly
prove a powerful factor in influencing the judgment
of Congress, thereby securing for the railroads the
DEC. 6 1930.]
- FINANCIAL CHRONICLE
3575
consideration of which they stand in such dire of interest named in the certificates. Last Septemneed.
ber this rate of interest was 2%%, and with the
banks required to pay 2% on the deposits the banks
An important announcement has come from the made the difference of % of 1%. If this month's
Treasury Department at Washington with respect new certificates should bear only 2% interest, the
to the rate of interest which the banks will have to 11/
2% rate on Government deposits which the banks
pay hereafter on Government deposits. A circular, will now be required to pay would still leave a profit
bearing date Nov. 26, states that beginning Dec. 1 of 1/2 of 1%. If, on the other hand, the rate of in-.
the interest required to be paid by depositary banks terest on the new certificates should be only 17
/
8%,
upon War Loan accounts, representing the proceeds the difference in favor of the bank ow the Governof sales of certificates of indebtedness, &c., will be ment deposits at 11/2% would be % of 1%,the same
only 1/
1
2% per annum against the previous 2%. The as in the case of the certificates last September,
2% rate had been maintained so long that it had been when the rate in the certificate was 2%70 and the
regarded as almost a fixture never to be changed. banks had to pay 2% interest on the Government
In the newspapers the action has been generally deposits repreiinting the certificates purchased.
looked upon as having some bearing merely upon We will be safe, however,in assuming that the Secrethe rate of interest which the new certificates of tary reduced the deposit rate, not for the purpose of
indebtedness which it has already been announced jockeying in the interest rate in the certificate, but
will be forthcoming the present month, and not because interest rates generally now are so much
unlikely it will be a factor in determining such rate. lower.
It may be safely assumed, however, that other reasons and considerations have prompted the reducBrokers' loans the present week, in the return of
tion. The principal reason no doubt has been that the Federal Reserve Bank of New York show a furin the present extreme ease in the money market, and ther decrease, though the decrease is comparativelY
especially in the low interest rates prevailing, it is small, namely,$11,000,000, but it follows consecutive
no longer profitable for the banks to carry such decreases in the nine weeks preceding aggregating
deposits, at least here in New York, by paying the $1,100,000,000. With the further decrease of $11,7
Government 2% upon them. These deposits are 000,000, the record is one of uninterrupted declines.
often of large amount and are allowed to be retained for 10 consecutive weeks, and footing up no less than
by the banks for long periods. In the sale last $1,111,000,000. Notwithstanding the $11,000,000 deSeptember of $334,211,000 certificates of indebted- crease, the loans for own account by the reporting
ness the Government deposits growing out of the member banks at New York are a little larger this
same reached no less than $272,693,000, and the last week, standing at $1,296,000,000 Dee. 3 against.
installment of the deposits was not called for pay- $1,288,000,000 Nov. 26. On the other hand, loans
ment until December 3. Such deposits in the past for account of out-of-town banks have been further
have always been. considered very desirable by the reduced from $380,000,000 to $373,000,000, and loans
banks because (1) the banks are not required to hold "for account of others" from $455,000,000 to $442,-.
any reserves against the same, giving them a distinct 000,000. The grand total of the loans in the three
advantage to that extent over ordinary private de- categories combined is now down to $2,111,000,000
posits, and (2) because under normal conditions the as against $3,392,000,000 12 montbs ago, on Dec. 4
banks can loan the amounts represented by the de- 1929, and comparing with $6,804,000,000 the maxi7
posits at higher rates than they are obliged to pay mum reached on Oct. 2 1929, just before the stock
the Government on such deposits. Obviously, if market collapse at that time.
the banks can negotiate loans at 4% or
Notwithstanding the large and continuous reducwhile
they are paying the Government only at the rate of tion in brokers' loans, borrowing by the member
2%, they stand to make the profit represented by banks at the Federal Reserve Banks is increasing,
the difference. With, however, the money market and the total of Reserve credit outstanding is also
in such a state of extreme congestion as that which rising. The discount holdings of the 12 Reserve innow prevails, where call loans on the Stock Ex- stitutions for the present week are up to $250,927,000
change command no more than 2% and on the street against $233,852,000 last week and $205,037,000 the
often bear only 1% or 11/2%, the idea of profit be- previous week. This week, too, the acceptance hold.comes illusory, at least here in New York. Outside ings of the Reserve Banks show a very substantial
of New York, of course, money cannot be obtained increase, where last week and the previous week they
at such abnormally low figures, even in these times, had shown reductions. The amount of.such acceptas on the Stock Exchange and Government deposits ances now held is $218,937,000 against $176,106,000
at 2% presumably still leave a profit to the deposi- last week and $178,273,000 the week before, but comtary banks holding them, though necessarily profits paring with $207,342,000 on Nov. 12. Holdings of
that have waned considerably. Evidently that is United States Government securities also show an
what induced the change, and with the rate now only increase this week, standing at $602,192,000 Dec. 4,
11/
2% the banks get an additional leeway of 1/2%.
against $595,634,000 on Nov. 26. As a result of these
Of course where the banks buy the certificates for changes the grand aggregate of the bill and securitheir own account the situation is slightly changed, ties holdings is now up to $1,078,414,000 against
but the final result is much the same. Payment is $1,011,940,000 last week and $985,380,000 the weep
then made for the certificates with a credit on the before, showing an increase for the two weeks in
books of the bank, but the deposits representing the amount of $93,034,000. Federal Reserve notes in
credit now no longer remain commercial deposits circulation have been rising in each and every week
against which the bank is required to keep a reserve, since Oct. 29. The amount now is $1,450,898,000
but become Government deposits against which the against $1,421,868,000 last week; $1,383,604,000 two
bank need hold no reserves, and in such case the weeks ago, and $1,354,881,000 on Oct. 29. Gold holdbank, being the owner of the bonds, gets the rate ings are a little lower at $3,007,491,000 as against
3576
FINANCIAL CHRONICLE
LvoL. 131.
$3,024,970,000 last week and $3,040,982,000 on lumber manufacturing division and for machinery
and tools added materially to the liabilities for those
Nov. 19.
two classes.
There were quite a number of the larger defaults
Commercial failures in the United States in Nolast
month—that is, failures where the liabilities
vember, according to the records of R. G. Dun & Co.,
in
case were $100,000 or more. The number
each
*55,numbered 2,031, involving an indebtedness of
was
a total of indebtedness of $32,819,271.
with
79,
level
high
the
260,730. These figures continue on
The
larger
defaults
have been conspicuously heavy
NoIn
year.
the
month
during
every
of practically
year. They have been quite
this
of
all
practically
defaults,
similar
were
1,796
there
ago
year
vember a
with liabilities of $52,045,863. For the 11 months of numerous in all three classes, including manufac1930, 23,830 mercantile failures for $584,600,481 of turing, trading and in brokerage lines, and for the
indebtedness, have been reported, against 20,872 in last two months show considerable additions in the
the corresponding period of the preceding year owing manufacturing division and the brokerage class.
$415,785,082. The increase in the 4umber for this Several of the largest defaults last month in the
year to date has been 14.2%, and in the liabilities manufacturing section occurred in New York and
40.6%. The number for this year is now in excess New Jersey; in Ohio, Illinois, and Missouri, and
of the 23,676 insolvencies in the United States re- in some of the Southern Central States, while for
ported for the full year 1922, which up to 1930 was the brokerage class there were several that were exthe previous high record. The liabilities for 1930 ceptionally heavy in New York; also in Arkansas
will be close to, if they do not exceed, the high record and one in Tennessee, the latter directly connected
with the recent disturbed financial situation that
heretofore shown.
in the Middle South.
developed
November figures this year are well up with the
high totals of the earlier months of 1930.
The stock market this week has been a humdrum
Both as to the number of failures and the liabilities, trading defaults in November show a large in- sort of affair, with transactions small and tradcrease over those of a year ago. For manufacturing ing steadily growing lighter, and with the course of
lines, liabilities were considerably heavier this year, prices irregular, but inclined to sag most of the time.
but the number was less than last year, while for the On Saturday last selling pressure was not very much
brokerage class, both the number and amount were in evidence, and, accordingly, some slight improve
smaller than they were in November 1929, although ment in prices resulted after the weakness on Frithe liabilities for the last-mentioned division for the day. On Monday and Tuesday the tone continued
month just closed were very heavy. The Wall Street good, with prices again moderately higher for most
collapse culminated at this time a year ago, and was of the share properties, though by no means all, and
reflected in the heavier figures shown for the manu- with changes in prices in the great majority of
facturing division; also for the larger totals re- instances relatively small. On Wednesday, Thursported in the brokerage class. For the trading day, and Friday, however, the market was once more
division, however, the increase was postponed to a reactionary, and the general tendency of prices was
later period. Trading defaults for November this slightly lower. There seemed to be an utter lack of
year numbered 1,447, with liabilities of $21,217,042; supporting orders anywhere in the market and relamanufacturing, 448, involving $19,437,989, and for tively small selling suffices to bring substantial
the brokerage section there were 136 in number, downward reactions, besides which there has been a
owing $14,605,699. In the corresponding month of complete absence of favorable developments, conse1929, 1,166 trading failures were reported for $16,- quently removing all inducement to put in buying
122,076; 481 manufacturing defaults, involving $14,- orders. Trade and business have continued de
179,628, and 149 in the brokerage division for $21,- pressed, and the iron and steel industry in particular
744,159. Thirteen of the 14 larger divisions into has lacked signs of improvement, with mill operawhich the trading section is separated show an in- tions recording further contraction instead of bettercrease this year. These 14 separate trading classifi- ment of operations.
The railroads have been a weak feature all through
cations constitute nearly 80% of the total of all
trading insolvencies. The large clothing division the week. The most depressing circumstance of all,
leads all the other classes in the increase shown. however, has been the great further decline in the
Following this may be included general stores; deal- bond market, almost to the point of collapse. The
ers in dry goods;shoes; furniture, and drugs. There course and reason for this is a complete mystery.
is also some increase in the hardware line; for deal- The President's annual message as well as the buders in jewelry and in books and stationary. Quite get message have been favorably received, but have
a large increase is shown for hotels and restaurants. been without effect upon the market. The call loan
On the other hand, the very large grocery class again rate on the Stock Exchange has again remained
reports a decrease for last month, as it has for a entirely unaltered at 2%.
Trading has continued light. At the half-day sesyear or more past.
In the manufacturing division, where the number, sion on Saturday the sales aggregated 697,160
as noted above, shows a decline, the increases this shares; on Monday they were 1,107,507 shares; on
year are confined mainly to six of the 14 separate Tuesday, 1,579,620 shares; on Wednesday, 1,217,460
• classifications, and the additions are not large. The shares; on Thursday, 1,591,020 shares, and on Friheavy lumber manufacturing section leads the day, 1,589,265 shares. On the New York Curb Exothers; increases also appear for manufacturers of change the sales last Saturday were 240,200 shares;
furs, hats and gloves; leather goods, including shoes; on Monday, 395,800 shares; on Tuesday, 453,800
earthenware and bricks, and for the printing trades. shares; on Wednesday,406,300 shares; on Thursday,
For the iron manufacturing class; for machinery 475,200 shares, and on Friday, 509,900 shares.
As compared with Friday of last week, prices are
and tools; clothing, and milling and bakeries, some
reductions are shown. Several large failures in the irregularly changed. General Electric closed yes-
DEC. 6 1930.]
FINANCIAL CHRONICLE
3577
/
4 on Friday of last week;
The oil shares have resisted selling pressure.
terday at 48 against 473
1
4
Warner Bros. Pictures at 17% against 17; Elec. Standard Oil of N. J. closed yesterday at 53/
Power & Light at 43% against 42%; United Corp. against 52% on Friday of last week; Standard Oil
/8; Simms Petroleum at
at 181
/
4 against 1814; Brooklyn Union Gas at 105 of Calif. at 49% against 487
Skelly
Oil
at
13/
1
4 against 13%; At8%;
106;
American
Water
Works
at
against
against
601/
8 against 7
633
/
4; North American at 68% ex-div. against 697
/
8; lantic Refining at 21 against 21%; Texas Corp. at
4; Pan American B at 43
/
4 against 483
/
4; Standard 36% ex-div. against 381/
Pacific Gas & Elec. at 473
Gas & Elec. at 67% against 67; Consolidated Gas of against 42 bid; Richfield Oil at 7% against 6%;
/8 against 18; Standard Oil
N. Y. at 86% against 861%; Columbia Gas & Elec. Phillips Petroleum at 177
8 against 25, and Pure Oil at 10%
at 36 against 35%; International Harvester at 58% of N. Y. at 251/
against 59%; J. I. Case Threshing Machine at 105 against 11.
against 108%; Sears, Roebuck & Co. at 53 against
The copper stocks have held up fairly well. Ana51/ ; Montgomery Ward & Co. at 21/
1
4 against 223
/
8; conda Copper closed yesterday at 35% against 35%
Woolworth at 60% against 59%; Safeway Stores at on Friday of last week; Kennecott Copper at 27%
/8 against
/8; Calumet & Hecla at 97
47% against 49%; Western Union Telegraph at ex-div. against 267
135% against 143; American Tel. & Tel. at 186% 10; Calumet & Arizona at 39 against 35; Granby
against 186%; Int. Tel. & Tel. at 267
/
8 against 271
/
4; Consolidated Copper at 171/s against 17; American
/8 against 50/
1
4,and U. S.
American Can at 115% against 114%; United States Smelting & Refining at 507
Industrial Alcohol at 63 against 66%; Commercial Smelting & Refining at 23% against 23%.
Solvents at 17% against 17%; Shattuck & Co. at
25/
1
4 against 253
Stock exchanges in the important European finan/
8; Corn Products at 78/
1
4 against
77%, and Columbia Graphophone at 10% cial centers followed an irregular course this week,
against 10%.
with the main trend toward slightly higher levels.
Allied Chemical & Dye closed yesterday at 203 Most of the sessions at London, Paris and Berlin
against 196% on Friday of last week; E. I. du Pont were favorable, notwithstanding gravely disconcertde Nemours at 88% against 767
/8; National Cash ing developments in all these markets. The business
Register at 31 against 31; International Nickel at situation in every case remains substantially un18% against 18; Timken Roller Bearing at 45% changed, with improvement hoped for after the turn
against 45; Mack Trucks at 42% against 44%; Yel- of the year. Preparations are under way, in the
low Truck & Coach at 10% against 11; Johns-Man- meantime, for dealing with the unemployment probville at 663
/
8 against 66; Gillette Safety Razor at lem during the coming winter. The House of Com313
% against 32%; National Dairy Products at 427
/
8 mons in London, as one step toward meeting this
against 427
/8; National Bellas Hess at 4 against 4%; problem, adopted a resolution Monday which inAssociated Dry Goods at 26 against 27%; Texas creases from £60,000,000 to £70,000,000 the limit of
Gulf Sulphur at 51% against 53; American Foreign Treasury advances to the unemployment fund. In
Power at 37 against 37%; General American Tank the German budget presented this week by Finance
Car at 67 against 66%; Air Reduction at 103 against Minister Dietrich, added provision of a similar char100%; United Gas Improvement at 277
/8 against acter was made, although the German system is in27%,and Columbian Carbon at 887
/
8 against 901/
8.
tended to be self-supporting. Food riots occurred
The steel shares have followed the course of the this week in important centers of Germany and
general market. U. S. Steel closed yesterday at Italy. Added to these matters of general concern
143% against 144/
1
4 on Friday of last week; Beth- were several developments that caused uneasiness
lehem Steel at 61% against 60%; Vanadium at 53% in the markets particularly affected. Great Britain
/
8 faced the possibility of widespread strikes in the
against 51%, and Republic Iron & Steel at 173
against 17%. The motor stocks have shown resist- coal mines and among the railworkers. In Germany
ance to the downward movement. General Motors the new Reichstag assembled Wednesday and began
closed yesterday at 351/
8 against 34% on Friday of consideration of the Bruening program of financial
8; Nash reforms. Some nervousness was occasioned in
last week; Chrysler at 171/8 against 171/
Motors at 281/
4 against 27%; Auburn Auto at 86 France by a Parliamentary inquiry into the affairs
1
4 against 9%; of Albert Oustric, whose stock market operations
against 77; Packard Motor Car at 9/
4, and Hupp were alleged to have caused the recent suspensions
Hudson Motor Car at 23% against 231/
rubber
stocks
are very of provincial banks. That the nervousness was well
The
Motors at 87
/8 against 9.
little changed. Goodyear Rubber & Tire closed yes- grounded was made apparent by the fall of the Tarterday at 48% against 48% on Friday of last week; dieu Ministry Thursday, after a debate on the quesB. F. Goodrich & Co. at 19/
1
4 against 21%; United tion in the Senate. Efforts are being continued in
States Rubber at 14% against 14%, and the pre- Italy to bring the general wage scale down and thus
ferred at 26 against 27.
establish a new proportion in the nation's economy.
The railroad list has again had many weak spots. To the recent reduction of 12% in the wages of
Pennsylvania RR. closed yesterday at 59% against Government employees were added this week cuts
591/
4 on Friday of last week; Erie RR. at 28 against of 8% to 10% in Italian industry.
281/
8; New Yprk Central at 126 against 127%; BaltiDealings on the London Stock Exchange were
more & Ohio at 72% against 71%; New Haven at started in a fairly confident manner Monday, and
81/
1
4 against 82%; Union Pacific at 183 against the list as a whole moved forward. Improvement in
186%; Southern Pacific at 100 against 99; Missouri- British funds gave the market tone, these issues be/8 ex-div. against 20%; St. Louis. ing active on a demand occasioned by reinvestment
Ransas-Texas at 207
San Francisco at 55% against 64; Southern Railway of the half-yearly war loan interest. International
at 61% against 621%; Rock Island at 59 ex-div. stocks advanced on improved week-end advices from
against 62; Chesapeake & Ohio at 42 against 42%; New York, while slightly higher prices also were
/8 against 52%, and Great recorded for British industrials, oil stocks and metal
Northern Pacific at 527
Northern at 63% against 62.
shares. The gains were maintained Tuesday, with
3578
FINANCIAL CHRONICLE
[VoL. 131.
oil issues prominent. Indications of stiffening but the market otherwise was confident and numerprices in important commodities caused some buy- ous small gains were registered. The news from
ing in rubber issues and metal stocks, and the inter- London that British miners had voted against exnational issues also were firm on continued cheerful tension of the coal strike caused a slight reaction
reports from New York. British funds were easier, toward the close. Irregular movements resulted
owing to the adverse tendency of exchange rates. at Berlin yesterday from the various disturbing
Wednesday's session at London was quiet, with early political developments.
irregularity turning into easiness as the dealings
Relations of the United States with foreign counprogressed. British funds again were hesitant and
International
tries
were discussed in a general sense by President
most issues lost a little ground.
stocks made a good start, but here also recessions Hoover in the course of his message to the Congress
developed. Rubber shares moved upward, however, Tuesday. Other than a remark that such relations
on expectations of a rise in the price of the com- remain on a "high basis of cordiality and good-will,"
modity. Dealings Thursday were again on a small the most important pronouncement was confirmascale, and prices did not vary greatly. British funds tory of the President's declaration of last week to
moved up a little toward the close, but the inter- the effect that the protocol for American adherence
national stocks were irregular. British industrials to the World Court will be submitted to the present
and home rails were generally well supported, with session of Congress. The protocol covering the
optimism increasing late in the day when it ap- statutes of the World Court, which have been repeared that the strike in the Scottish coal mines vised to accord with the sense of previous Senate
would not spread throughout the industry. The reservations, will be placed before the present ConLondon market was sluggish yesterday, with British gress in a special message, Mr. Hoover said. He
also indicated that a number of treaties of arbitraFunds slightly lower.
Prices on the Paris Bourse moved upward sharply tion and conciliation negotiated during the past year
as trading started Monday, owing to arrangements will also be presented for the approval of the Senate.
by groups of Exchange and Curb brokers for easing Touching briefly on recent world developments, the
the month-end settlements. Money was plentiful President remarked that there has been "extended
and short sellers had difficulty in covering their political unrest in the world." Asia continues its
commitments, buying from this source being the .disturbed condition, and revolutions have taken
main factor in the upswing, according to reports. place in Brazil, Argentina, Peru, and Bolivia, he
The gains were not fully maintained, as some liqui- remarked. A commission formed to investigate condation again appeared toward the close. The up- ditions in Haiti and report upon the future policy
ward trend on the Bourse was resumed Tuesday, of the United States in that country submitted a
and the gains of the previous session were increased. report which "proved of high value in securing the
A slow but steady improvement took place, as fur- acceptance of these policies," Mr. Hoover pointed
ther bank or brokerage difficulties were considered out. Gradual withdrawal of official American acimprobable. The market began to reflect some tivities has begun, with a view to complete retirenervousness regarding the political situation Wed- ment at the expiration of the present treaty
nesday, and buyers were more hesitant. Activity in 1935.
moderated and prices turned irregular, but most
An important statement on American foreign
issues finished at substantially unchanged levels. policy was also made this week by Secretary of
Thursday's session was also quiet, with apprehen- State Stimson, who dealt Monday with the numersions in evidence of a possible fall of the Government ous recent reports regarding possible implementain the Senate test. After a day of minor movements, tion of the Kellogg-Briand treaty and with a variety
stocks closed at virtually the same levels of the prev- of statements suggesting more active participation
ious day. The fall of the Tardieu Government oc- by the United States Government in European concurred after the close and did not affect the session. cerns. Mr. Stimson denied specifically that any
The session yesterday was unsettled by the Cabinet agreement is contemplated whereunder France and
crisis, and most issues dropped.
the United States would refuse loans to countries
The Berlin Boerse was firm at the opening Mon- intending to spend large sums on armaments. No
day, and the tendency toward improvement was reports were received, he said, regarding conversa
maintained most of the day. The firmer tendency tions between Premier Tardieu of France and George
in New York was a favorable influence and prices L. Harrison, Governor of the Federal Reserve Bank
advanced throughout the list. Reichsbank shares of New York. Mr. Stimson added that he had held
and the potash issues showed the greatest gains. no conversations with bankers or other persons with
Some irregularity appeared in Tuesday's session, ow- respect to a rumored loan to Italy. Finally, the
ing mainly to the immence of the Reichstag session. Secretary denied that United States Ambassador
After a further confident opening, prices moved off Gibson, in the course of the Geneva disarmament
in most sections of the list. Net gains were again negotiations, had committed the United States in
reported, however, in Reichsbank and mining stocks. any way on the question of revision of the peace
Confidence in financial circles that the Bruening treaties. "That would be a blunder which Mr. GibCabinet would succeed in its program of financial son is incapable of making," Mr. Stimson said. A.
reforms caused firmness in the dealings Wednes- cabled report from Mr. Gibson was quoted to show
day. Advances were again substantial in Reichs- that the head of the American delegation at Geneva
bank shares and the potash stocks, while some of had pointed out painstakingly that implications of
the shipping issues also joined in the movement that nature were not to be drawn from his voting on
Dealings became quieter toward the close but the questions relating to the maintenance of existing
firm tone was retained. Trading dropped to small armaments. A further denial was made by Secreproportions Thursday, and the market showed some tary Stimson Tuesday of press reports that the
irregularity. Reichsbank and potash stocks reacted, United States and Great Britain had settled their
DEC. 6 1930.]
FINANCIAL CHRONICLE
3579
differences on questions relating to the freedom of previously. "It would be presumptuous and even
rash for us to instruct the Council what to do," he
the seas.
said. A compromise amendment was offered by
Elaboration of a draft treaty of arms limitation the British delegation suggesting that the Council
and reduction was completed this week by the Pre. set an early date, and this resolution was adopted.
paratory Disarmament Commission of the League The opinion seemed to prevail among the delegates,
of Nations, and further progress in this matter according to Geneva dispatches, that the Council
under League auspices is now dependent upon a will be likely to call the proposed general conference
general conference which the League Council is to in 1932.
call at some indefinite time in the future. SettleThreats of widespread strikes among coal miners
ment of the naval limitation question at London
railworkers overshadowed political developand
the
made
possible
of
formulation
year
the
early this
draft treaty, since the naval question had proved the ments in Great Britain this week. A national
stumbling block at previous meetings of the Prepara- stoppage in British coal fields appeared imminent
tory Commission. In the session of the Commission early in the week, in connection with the coming
which is now reported about to close, methods of into force of a new Parliamentary measure provid2-hour day in this industry. The measlimitation were considered in their broadest aspect. ing for a 71/
a compromise, arranged by the
represented
The delegates of the 31 countries assembled at ure
mediators, of the demands of the
Government
Labor
Geneva voted successively for limitation of land,
sea, and air arwaments by means of budgetary con- miners for a seven-hour day and the eight-hour schedtrol. The United States delegation, almost alone, ule upheld by the owners. The owners refused to
upheld the principle of specific limitation of the accept the 71/2-hour compromise, unless they were
number of effectives, cannon, rifles, and other able to spread the working hours over the week in
weapons. A compromise proposal, also offered by accordance with mining requirements, and the
Ambassador Hugh S. Gibson as head of the United "spread-over" question was left for subsequent adStates delegation, called for full publicity on arma- justment. The miners' headquarters advised the
ments, but the Commission rejected the plan. Dur- local unions to make temporary arrangements on
ing its deliberations of the current week, the Com- this matter with the owners pending further conmission considered some minor technical points sideration, and in most areas such adjustments were
which do not alter the general intent of its findings. actually effected. In Scotland, however, the deterMost of the genuinely controversial questions, it mination was reached to strike for strict observance
2-hour day on a straight daily basis, and
should be noted, are left for the consideration of of the 71/
the proposed general conference. The United States, 92,000 Scottish miners accordingly went out last
Washington reports indicate, will in all likelihood Sunday. This involved the delicate question of supparticipate in the general conference, although some port of the striking miners by those in all other pit
reservations will probably be made covering items areas in Great Britain. Every effort was made by
in which the United States cannot participate.
Prime Minister MacDonald and members of his
The question of greatest immediate interest dur- Cabinet to avert a spread of the dispute, and these
ing this week's sessions of the conference was again efforts were successful. At a meeting of miners'
that of the date of the proposed general conference. union delegates Thursday a proposal for a general
Count von Bernstorff, head of the German delega- strike in the industry was defeated by representation, has made vigorous demands from time to time tives of 230,000 miners, as against representatives
for the actual fixing of an early date for the general of 209,000 miners.. Arrangements whereunder the
assemblage, and he has usually been supported in striking miners will return to work Monday were
this demand by the Russian and Turkish representa- completed yesterday.
A strike on British railways is a possibility,
tives. Indications that the Preparatory Commission would again fail to name a date produced em- owing to company proposals for wage reductions,
phatic repercussions in Germany late last week. which are opposed by the workers. The railways
Dr. Wilhelm Groener, Defense Minister of the wish to accomplish necessary reductions in expendiReich, declared that the "intolerable disproportion tures by lowering the cost-of-living allowance initiof armaments in Europe must be terminated." ated in the war days. Average reductions of $2.50
Fascist and Nationalist leaders in Germany de- a week are entailed for the workers in this plan, and
manded that the Reich delegation to the Preparatory emphatic objections have been raised by the unions.
Conference be withdrawn, and a resolution to the The latter have submitted counter proposals for
same effect was adopted later on by the Reichstag reductions based on the financial returns of the
Committee on Foreign Relations. In consequence, railways and the sums available for dividends. It
Count von Bernstorff again made a determined was agreed early this week to place the matters
effort this week to have the Commission name a date before arbitration boards, and there is now every
and he suggested Nov. 5 1931 as a suitable time. assurance that there will be no railway strike, at
This proposal caused a sharp clash Tuesday between least before Christmas.
The Round Table Conference on India, which met
the German spokesman and Viscount Cecil of Chelwood, chief British delegate. Count von Bernstorff at London, Nov.12, proceeded, in the meantime, with
pointed out that the Assembly of the League in 1926 its task of formulating a Federal Constitution on
requested the Commission to set a date for the which all Indian delegates can agree and which is
assembling of the general conference, while public to serve as the basis for a proposed Act of Parliaopinion now demanded action of this sort. Lord ment. The entire delegation of British Government
Cecil replied that the last Assembly was the one representatives, and all delegates from the indepenfrom which the Commission should now take its dent States and from British India are now included
orders, and that it had avoided giving such instruc- in the committee designated to formulate the Contions as those laid down by its predecessor four years stitution. Discussions on this matter are private
3580
FINANCIAL CHRONICLE
and no important developments have been reported
as yet. There was, however, an important repercussion this week of the recent Imperial Conference,
which adjourned without taking action on the economic problems that were of chief interest. In the
course of a debate in the House of Commons last
week, J. H. Thomas, Secretary for the Dominions,
dealt rather harshly with the proposal of R. B. Bennett, Prime Minister of Canada, for Inter-Imperial
tariff preferences. "There never was such humbug,"
Mr. Thomas said. Mr. Bennett, who was still in
London, issued a statement Monday in which he
took the Labor Government sharply to task for
allowing Mr. Thomas's statement to stand without
denunciation. "The failure of the Government to
denounce the comment must be construed as an indorsement of the views expressed by one of the Ministers," Mr. Bennett said. "This statement was a
condemnation in terms unusual as they are injurious of a proposal made by myself on behalf of the
Government of Canada, and which we believe contains the best solution of the urgent problem of
closer Empire economic association." After reviewing the course of the Imperial Conference negotiations, Mr. Bennett remarked that if the statement
by Mr. Thomas indicates what is to be the attitude
of the United Kingdom at the forthcoming Ottawa
conference, "then I have little hope that any agreement which Canada may reach with the other overseas Dominions will include the United Kingdom."
[voL. 13L
July. The attack was led by Senator Rene Hery,
who interpellated the Government on its general
policy. M. Hery was joined in his criticisms by
his associates of the Left parties, who accused M.
Tardieu of having neglected the country's interests
in a period of world depression. •They complained
that nothing had been done about the cost of living,
that the Oustric affair had been allowed to develop
without Government intervention, that some members of the Cabinet were known as Clerical's, and,
finally, that M. Tardieu was not in full accord with
his Foreign Minister, M. Briand. M. Tardieu, in
reply, emphasized the financial and economic
security of France and the comparatively slight
effects of the depression. Treating of the Oustric
bank suspensions, he said the financial history of
every country has been replete with similar incidents of late. He was in full accord with M. Briand,
he said. The voting, however, went against the Premier when the question of confidence was posed.
The Senate vote was 147 to 139, and the resignations of the entire Cabinet were presented to President Gaston Doumergue an hour later. It was the
first time in four years that an adverse Senate vote
caused the downfall of a Cabinet in France, and
only the fourth time in the half century of the Third
French Republic that a similar incident has
occurred.
President Doumergue began yesterday the usual
series of conferences with Parliamentary leaders in
the attempt to select a Premier who will prove
acceptable to the Chamber of Deputies and the Senate. The task is a difficult one, since the grouping
of Right and Left parties in both •houses is close.
Another coalition Cabinet is, of course, inevitable.
Among the prominent Parliamentarians mentioned
as possible successors to Premier Tardieu are Raymond Poincare, former President and Premier;
Henri Cheron, Minister of Justice in the Tardieu
Cabinet, and Aristide Briand, Foreign Minister.
It is also considered possible that M. Tardieu will
again succeed himself. A considerable period will
probably elapse before the Cabinet crisis is finally
resolved and a new Government firmly established.
M.Tardieu first became Premier of France on Oct 31
1929, when he succeeded M. Poincare after the latter's resignation on account of illness. He continued
office until Feb. 17 1930, being overthrown in
the Chamber of Deputies by a narrow margin on a
minor question of budgetary procedure. A period
of confusion followed, during which Camille Chautemps formed a Cabinet that was immediately defeated, and M. Tardieu late in February again was
asked by President Doumergue to form a Cabinet.
The Government that has now been defeated was
organized at that time.
Premier Andre Tardieu of France and his coalition Cabinet of Right and Center parties fell before
the increasing opposition of the powerful Left groups
late Thursday, after a protracted and bitter debate
in the French Senate. In the course of the past year
M. Tardieu narrowly escaped defeat on several occasions, as the allegiance of some of the parties
grouped under his Premiership has been precarious.
Antagonism to his regime increased lately, owing
partly to the success in the German national elections of Fascists and others who declared openly
for revision of the Versailles treaty. This development caused bitter criticism in France of the conciliatory policy pursued by Foreign Minister Ariatide Briand, and on the reconvocation of Parliament
a sharp debate instantly began on this matter.
Although the Cabinet was sustained on the question
of foreign policy, opposition increased and became
more bitter after the series of recent bank failures.
One of M. Tardieu's ministers, M. Raoul Peret, who
held the portfolio of Justice, was forced to resign
when it was shown that he had once acted as legal
adviser to Albert Oustric, whose operations are said
to have caused the bank suspensions. A Parliamentary investigation of the bank failures was started
and the questioning resulted last week in the resignations of two Under-Secretaries in the Cabinet.
Efforts to achieve much needed financial reforms
These resignations were due to the fact that the two by the German Government were resumed this week
officials were clients of the Oustric institutions and by Chancellor Heinrich Bruening, in connection
they felt obliged to be free from Parliamentary re- with the reconvening of the Berlin Parliament on
strictions in order to testify before the investigating Dec. 3. The reforms call for a sharp scaling down
committee. A debate in the Chamber of Deputies of the national expenditures, and they are opposed
followed on the financial questions involved, and M. by important parties in the Reichstag. ParticuTardieu was upheld by a margin of only 14 votes larly bitter opposition has been voiced by the
when he asked for a vote of confidence.
Fascist and Communist groups, which made the
That the Senate debate, scheduled to follow, might greatest gains in the elections of Sept. 14. When
result in his fall was quickly recognized, as the the question was discussed in the short session of
Tardieu regime was upheld in the Upper Chamber the Reichstag in October, the Socialists, who conby a margin of only five votes in that body last stitute the largest single group, indicated that they
DEC. 6 1930.]
FINANCIAL CHRONICLE
3581
four main diviwould reserve their decision until the text of the marks. The expenditures fall into
and other war
payments
reparations
with
sions,
the
of
support
The
covering bills was available.
4,000,000,000
Socialists was extended, in the meantime, to the obligations amounting to almost
0
marks is
1,000,000,00
Bruening Cabinet of Center parties, which accord- marks. Approximately
A further
debt.
Reich
other
of
ingly weathered the attacks made upon it by the needed for service
the
Federal
for
ear-marked
is
marks
0
extremist groups. With the life of his Cabinet and 3,000,000,00
2,000,over
somewhat
of
balance
the
while
the fate of the reform measures dependent upon the States,
Centhe
of
s
requirement
cover
will
marks
000,000
attitude of the Socialist group, Chancellor Bruefinan's
Government
the
.
"When
Government
tral
apstep
a
ning began his campaign this week with
public, it indiparently designed to smooth the way for acceptance cial and economic plan was made
German house
the
of his program by the 143 Socialist Deputies. In a cated our determination to set
of credit
deserving
remain
might
conference with President von Hindenburg on in order so that we
Dietrich
Dr.
home,"
at
s
disturbance
Dec. 1, Chancellor Bruening urged the enactment abroad despite
our
that
mean
will
budget
this
of
"Approval
of 25 measures by decree under authority of Article said.
Reich
The
established.
y
permanentl
be
will
48 of the Weimar Constitution. This method of credit
greatest handiputting the national finances in order is necessary, faces no acute danger." Germany's
for in the
looked
be
must
said,
Minister
the
cap,
since
the Chancellor is said to have pointed out,
thought
he
but
the Reichstag could not possibly be counted upon lethargy affecting domestic markets,
to avail
of
industry
ability
to pass so many bills into law before the Christmas stable conditions and the
with
materials
raw
of
prices
low
recess. Acting accordingly, President von Hinden- itself of the current
speedily
would
capital
created
freshly
burg promptly decreed the sweeping measures for the aid of
"safeguarding industry and the public finances." restore confidence.
The bills enacted by decree include all but three
A protest against the treatment of the German
of the measures advocated by the Chancellor. The
in Upper Silesia during the recent Polish
minority
nal
changes
three missing items involve Constitutio
Governlimiting the rights of the Federal States, and a national elections was made by the Berlin
In
Saturday.
last
Nations
two-thirds majority of the Reichstag would be neces- ment to the League of
of
-General
Secretary
Drummond,
a note to Sir Eric
sary for this purpose.
question
the
that
made
was
demand
An outline of the financial reform measures was the League, the
promptly placed before the new Reichstag on Dec. 3 be placed on the agenda of the January Council
by Finance Minister Hermann Dietrich. This out- meeting. Specifically, the note charged that terline was presented in connection with submission roristic methods had been employed to deprive the
of the proposed budget, which was not enacted by German populace in Polish Silesia of voting rights,
decree and accordingly requires debate in the and 10 cases of outrages were cited in detail. The
Reichstag. The measures enacted by decree also Reich Government alleged that Polish officials
require confirmatory action by the Reichstag, but prevented German-speaking residents from voting
the legislative body must either accept or reject in two ways, first, by discrediting of German voters,
them as they stand. When the Deputies assembled on the ground that they did not possess Polish,citithere was placed before each of them an 86-page zenship papers, and second, through the propaganda
booklet containing the texts of the 25 laws enacted. of the Pilsudski adherents in favor of casting all
Finance Minister Dietrich, in urging acceptance of votes in public. Members of a militant Polish group
the program, stated that Germany must resolve her- were said to have been posted in the polling booths
self to a life of Spartan simplicity for the next three and to have noted every individual who voted in
years so that she can climb out of debt. Taxes have secret as an enemy of the existing regime. The acts
been raised to the very limit, he said, and the most of violence cited were not excesses common to elecrigid economy is necessary. He was quoted in an tion campaigns the world over, it was held, since in
Associated Press dispatch from Berlin as urging the Upper Silesia they were directed solely against the
slashing of Governmental salaries, the cutting of German population. Such acts, accordingly, ceased
administrative appropriations and the reorganiza- to be a matter of internal politics alone and became
tion of unwieldy governmental agencies on a more fit questions for settlement by the League Council,
efficient basis. The program of economy, he added, the note maintained. This question of Polish treatmust extend not only through the National Govern- ment of German minority populations has agitated
ment, but also to every State and commune. Regret League Council sessions on many occasions in the
was expressed by the Minister at the necessity for past. Acrid exchanges took place in several sessionsresort to emergency decrees, but he held this expedi- betwen the late Dr. Gustav Stresemann, Foreign
ent needful under present conditions. He warned Minister of the Reich, and August Zaleski, Foreign
the Reichstag that its authority may decline if it Minister of Poland.
remains a body in which large groups merely say
A new Cabinet was formed in Austria Wednes"No" and decline to take any responsibility.
In presenting the budget, Finance Minister Diet- day by Otto Ender, a Christian Socialist of modrich pointed out that he was introducing it much erate views, after three weeks of difficult negotiaearlier than usual this year in order to relieve the tions with the Peasant and Pan-German party leadcountry of uncertainty. Expenditures provided for ers. The coalition represented by Chancellor Ender
in the ordinary budget, he said, have been reduced forms what is known as the Schober bloc, and former
by 1,152,000,000 marks, and in the extraordinary Chancellor Schober will serve in the Cabinet as Vicebudget by 272,000,000 marks. Reductions also were Chancellor and Foreign Minister. The short-lived
effected in the appropriations turned over to the Vaugoin Cabinet, which recently resigned, was repFederal States, while unemployment insurance was resentative of Fascist groups in the Austrian Parliaplaced on a self-supporting basis. The draft budget ment, and a regrouping was necessitated by the
presented for 1931 balances at about 10,000,000,000 recent national elections in which the Fascist or
3582
FINANCIAL CHRONICLE
Heimwehr faction was less successful than it had
expected. Dr. Vaugoin, however, will also be in the
new Cabinet, where he will hold the portfolio of
the War Department. President Miklas accepted
the resignations of the Vaugoin minority government last Saturday and promptly asked Dr. Ender
,to form a new regime. With the exception of Dr.
Vaugoin, the Cabinet now selected is composed of
members of moderate views, and its appointment is
believed to signify the end of Fascist experiments
in Austria. The new Cabinet will be composed as
follows:
Chancellor—Dr. Otto Ender.
Vice-Chancellor and Foreign Minister—Dr. Johann Schober.
Minister of the Interior—Franz Winkler.
Minister of Justice—Dr. Hans Schuerff.
Minister of Finance—Dr. Otto Juch.
Minister of Agriculture—Andreas Thaler.
Minister of Trade and Commerce—Edward Heinl.
'Minister of War—Karl Vaugoin.
Minister of Education—Dr. Enunerich Czermak.
Minister of Social Welfare—Dr. Joseph Resch.
[Vora. 18L
State, was reported in Riga dispatches recently, and
this, it is believed, moved him to his several infractions of his own rule against granting interviews.
"The present world economic depression is very
heavy and will be heavier yet," M. Stalin told the
"Times" correspondent in this latest of his interviews. "It is the worst of the periodic crises that
mark the progressive decay of the capitalist system,
but I do not thing it will last or that it is the
culminating crisis," he continued. "Capitalism is
still strong and may recover, but this year has exposed its fatal weakness—capitalism cannot exist
without markets, and the mutual rivalry of capitalist States bars them from each other's markets.
Thus the stronger States are forced to bring pressure upon the weaker. Some European countries
suffer more from the present crisis than others, as
a result of the World War. Some are smaller and
more backward, and the stronger powers must seek
an issue of their own difficulties at their expense.
The breaking point will naturally come in the country least capable of resistance because every chain
breaks at its weakest link."
In a Moscow report to the Associated Press, also
dated last Sunday, details were given of an exhaustive analysis of the five-year industrialization
plan by V. V. Quibesheff, President of the State
Planning Commission. The plan, which was speeded
to four years some time ago, is proceeding in accordance with the hastened momentum, the analysis
states. In some branches of industry, scheduled
production under the five-year plan is being exceeded
in this, the third year, it is said. The present task
according to the analysis, consists in fulfillment of
the plan before schedule.
Added note was taken internationally this week
of the strange trial in Moscow of eight "traitors"
to the Soviet State, who have been eagerly confessing to fantastic schemes of purported international
intrigue and sabotage. The trial, which began early
last week, was heralded some time in advance by
denunciations in the Moscow press of high officials
of France and England. Among others, MM. Poincare and Briand of France, and Winston Churchill
and Col. T. E. Lawrence of England were said in
the Moscow organs to have conspired against the
Soviet regime. The allegations were made on the
basis of the confessions of the eight prisoners now
on trial. In the course of this peculiar legal proceeding, the defendants have repeated their confessions and emphatically repudiated suggestions that
their statements were not made of their own accord.
The chief witness, Professor L. K. Ramsin, who imThere have been no changes this week in the displicated the high officials of France and England, count rates of any of the European central banks.
admitted that he had never seen such officials. M. Rates remain at 6% in Spain; at 5/
1
2% in Austria,
Poincare and others have, of course, denied the Hungary, and Italy; at 5% in Germany; at 4% in
allegations.
Norway and Ireland; at 3/
1
2% in Sweden and DenThe French Government protested to Moscow last mark; at 3% in England and Holland, and at 2/
1
2%
week and asked for an official explanation of charges in France, Belgium, and Switzerland. In the Lonthat French officials had plotted an interventionist don open market discounts for short bills yesterday
movement against the Soviets. Action of a like were 2 3/16% against 21/
4% on Friday of last week,
3/ature was taken by the British Government early while three months bills were 2I/8@2 3/16% against
this week, according to a statement in the House of 2 3/16% on Friday of last week. Money on call in
Commons by Foreign Secretary Henderson. The London yesterday was 11/
4%. At Paris the open
British Ambassador at Moscow had been instructed, market rate continues at 2/
1
2%, and in Switzerland
li said, to protest against "adverse and unfounded at 11A3%.
reflections" on the previous and present British
dovernments, in as far as these reflections had been
The Bank of England statement for the week
officially accepted by the Soviet Government. The ended Dec. 3 shows a further loss of bullion, amountprotests resulted in a slight alteration of the course ing this week to £1,942,393. As this was attended
of the trial. The Court ruled that testimony involv- by an expansion of no less than £8,094,000 in note
ing foreign governments should not be presented in circulation, reserves fell off £10,036;000. The Bank
open trial, and whenever such matters came up there- now holds £155,630,794 of gold as compared with
after, the public was excluded. British opinion is £134,269,209 a year ago. Public deposits decreased
not inclined to take the trial very seriously, con- £11,026,000, while other deposits increased L23,sidering it rather a farce designed to impress the 371,569. The latter includes bankers accounts which
Russian people. Sir Henri Deterding, who is one rose £25,957,054 and other accounts which fell off
of the alleged conspirators, expressed the opinion £2,585,485. The large decrease in reserves and
in London Tuesday that the proceedings are in- increase in deposits is reflected in the reserve ratio
tended to cloak poor results of the five-year indus- which dropped from 59.54% a week ago to 45.51%
trialization plan.
now. A year ago the ratio was 31.86%. Loans on
Soviet philosophy, as expounded in high Russian government securities increased £24,370,000 and
quarters, was reflected in a Moscow dispatch of last those on other securities £1,919,500. The latter
Sunday to the New York "Times," wherein an inter- consists of "discounts and advances" and "securities"
view with Joseph Stalin was recounted. The death which fell off £1,474,335 and £445,165, respectively.
of M. Stalin, who is the actual head of the Soviet The discount rate is unchanged at 3%. Below we
rine. 6 1930.]
FINANCIAL CHRONICLE
3585
show the various items comparatively for five
Money market conditions remained substantially
unchanged this week, with only moderate indica-.
years:
tions of the increased month-end demands apparent
BANK OF ENGLAND'S COMPARATIVE STATEMENT.
1930.
1929.
1928.
1927.
1926.
The
official rate for call loans on the Stock ExDec. 3.
Dec. 4.
Dec. 5.
Dec. 7.
Dec. 8.
£
£
£
£
£
change
held undeviatingly to the 2% quotation that
Circulation _____a —359,218,000 361,086,000 371,455,000 136,805,220 139,634,485
Public deposits
7,842,000 8,003.000 8,690,000 7,433,678 8,805,503 has prevailed without any alteration since
Sept. 29:
Other deposits
116,085,513 96,118,216 114,933,000 109,827,922 111,585,201
Bankers' accounts 81,858,241 58,620,463
In the unofficial outside market, call money WWI
Other accounts... 34,227,272 37.497,753
Governm't securities 58,966,247 60,428,855 63,870,000 47,386,600 36,152.539
Other securities.-- 26,397,092 28,353,341 30,504,000 55,069,422 68,725,121 again available in most sessions at concessions from
Disc't & advances 4,609,262 9,622,606
the official rate, but the differential was smaller
Securities
21,790,830 18,730,735
Reserve notes & coin 56,412.000 33,181,000 47,087,000 32,654,540 33,349,220
Coin and bullion.- _155,630.794 134,269,209 158,544,760 149,709,760 153,233,000 than the full 1% that has been noted frequently of
Proportion of res've
to liabilities
45.51%
31.86%
38.09%
27.85%
27.70% late. Withdrawals by the banks of $40,000,000 preBank rate
3%
43,6%
534%
5%
41%
vented such offerings at concessions Monday, while
a On Nov.29 1928 the fiduciary currency was amalgamated with Bank of England
note issues, adding at that time £234,199,000 to the amount of Bank of England outside offerings also were insignificant Tuesday.
notes outstanding.
They appeared Wednesday, however, when a moderate amount of money was available at 11/
2%, or a
The statement of the Bank of France for the week
concession of Y2% from the official rate. Withended Nov. 29 records a gain in gold holdings of
drawals were again substantial Thursday, the banks
257,040,487 francs. The total of the item now stands
taking $30,000,000, and a small amount of money
at 51,966,914,751 francs, as compared with 40,was reported available in the street market during
808,253,851 francs last year and 31,599,991,312
that session at 134%. Additional withdrawals of
francs the year before. A decrease is shown in bills
$15,000,000 occurred yesterday, and the overflow
bought abroad of 1,000,000 francs and an increase in
into the street market was again small, with a rate
credit .balances abroad of 209,000,000 francs. A
1
2% quoted. Brokers' loans against stock and
large gain in note circulation, namely 1,802,000,000 of 1/
collateral again decreased this week in the two
bond
francs, advances the total of the item to 75,960,compilations that were published. The Stock Ex198,450 francs, which compares with 68,158,947,680
change figures covering the full month of November
francs the same time a year ago. French commercial
reflected a decline of $393,875,085, while Federal Rebills discounted, advances against securities and
serve Bank figures covering the week ended Wednescreditor current accounts reveal increases of 1,353,day night were down $11,000,000. Gold movements
000,000 francs, 20,000,000 francs and 60,000,000
New York for the week to Wednesday night conat
francs, respectively. Below we furnish a comparison
of imports of $1,899,000, all of which came
sisted
of the various items for the past three years:
from Latin America. There were no exports or net
BANK OF FRANCE'S COMPARATIVE STATEMENT.
change in the stock of gold held ear-marked for forChanges
Status as of
Noe. 29 1930. Nov. 30 1929. Dec. 1 1928.
!Or Week.
eign account.
Francs.
Francs.
Francs.
Francs.
Gold holdings____Inc. 257,040,487
Credit bale. abr'd_Inc. 209.000,000
French commercial
bills discounted_Inc.1353,000.000
Bills bought abr'd_Dee. 1,000,000
Adv.agst. securs__Inc. 20,000.000
Note eirculation__Inc.1802,000,000
Cred. curt. acc'ts_Inc. 60,000,000
51,966,914,751 40,808,253.851 31,599.991,312
6,760,085,284 7,106.846,540 13,385,896,801
8,751,764,627 10,610,754,270 1,238,292,173
19,108,987,390 18,716,509,993 18.816,143,621
2,867,494,584 2,471,651,838 2,283,901,773
75,950,198,450 68,158,947,680 62,659,066,435
23,186,662,063 20,975,902,216 18,695,855,169
Dealing in detail with the call loan rate on the
Stock Exchange from day to day, the call loan rate
has again remained at the single figure of 2% on
each and every day, this being the rate for renewals
as well as for new loans. The market for time
money, too, has been a repetition of that of previous
weeks, demand continuing at a minimum owing to
more satisfactory accommodation being obtainable
in other branches of the money market. Quotations
remain at 13
/
4@2% for 30-day money, 2@2/
1
4% for
60 days, and also for 90-day accommodation, 2/
1
4@
2/
1
2% for four months, and 2/
1
2@23
4% for five and
six months. Prime commercial paper in the open
market has continued in sharp demand, but the
supply of paper has continued short, and, as in
previous weeks, dealers have ben unable to take
care of all the business that lias been offered. Rates
are unchanged, choice names of four to six months'
maturity being quoted at 234@3%, while names less
well known are offered at 3/
1
4@3/
1
2%.
The Bank of Germany in its statement for the
fourth week of October showed an increase in gold
and bullion of 65,000 marks, raising the total of the
item to 2,179,992,000 marks. Bullion a year ago
stood at 2,240,362,000 marks and the year before
at 2,623,494,000 marks. Increases appear in reserve
in foreign currency of 14,991,000 marks, in bills of
exchange and checks of 497,836,000 marks, in
advances of 170,226,000 marks and in other assets
of 10,262,000 marks. Silver and other coin declined
35,145,000 marks and notes on other German banks
18,828,000 marks while the items of deposits abroad
and investments remain unchanged. Notes in circulation rose 646,958,000 marks, bringing the total
of the item up to 5,091,486,000 marks, as compared
with 5,591,023,000 marks at the corresponding week
a year ago. Other daily maturing obligations fell
Prime bank acceptances in the open market have
off 20,847,000 marks while other liabilities went up
continued
in excellent demand, but dealers have
13,296,000 marks. A comparison of the different
unfilled
many
orders due to a continued shortage
items for the past three years is given below:
of desirable paper. The 12 Reserve Banks this week
REICHSBANK'S COMPARATIVE STATEMENT.
ran up their holdings of acceptances from $176,Changes
Nov. 29 1930. Nov. 30 1929. Nov. 30 1928.
for Week.
106,000
to $218,937,000. Their holdings of acceptRetchsmarks.
Retchsmarks. Retchsmarks. Retchsmarks.
Assets—
Inc.
65.000 2,179,992,000 2,240,362,000 2,623,494,000
Gold and bullion
foreign correspondents fell from $428,for
ances
Unchanged
depos.abr'd.
149.788,000
Of which
149,788,000
85,626.000
Res've in torn curr....Inc. 14,991,000 524,830,000 397,466,000 172,054,000
938,000 to $425,826,000. The posted rates of the
Bills of exch. & checks Inc. 497,836,000 2,126,926,000 2,986,678,000 2,268,790.000
Silver and other coin_ _Dec. 35,145,000 152,526,000
95,031,000
89,737,000 American Acceptance Council remain at
4,212,000
2% bid and
Notes on oth.Ger.bks_Dec. 18,828,000
3,215,000
8,621,000
Inc. 170,226.000 241,155,000 164,729.000
Advances
113,133,090
17
/8% asked for bills running 30 days, and also for
Unchanged
Investments
102,474,000
92,562.000
92.330,000
Ins. 10,262,000 740.118,000 688,820,000 513,454,090
Other assets
8% bid and 2% asked for 120
60 and 90 days; 21/
Ltabildtu—
Notes in circulation—Inc. 846.958,000 5,091,486,000 5,591,023,000 4,724,024,000 days, and 2
bid
/
1
4
and 21/
%
8% asked for 150 days
Oth.dally matur.oblig.Dec. 20,847,000 382,435,000 445,174,000 434,06'1.000
Inc. 13,298,000 302,526,000 328,254.000 268,206,000 and 180 days. The Acceptance
Other liabilities
Council no longer
gives the rates for call loans secured by acceptances.
3584
FINANCIAL CHRONICLE
[Vou 131.
-Open market rates for acceptances also remain un- Continued withdrawals of French balances are bound
to have a stiffening influence on London money rates,
changed, as follows:
and the Bank of England may be forced to take
SPOT DELIVERY.
—120 Days—
—150 Days—
—180 Days—
further defensive measures to protect the. exchange
Bid. Asked
Bid. Asked.
Bid. Asked.
2
2X
2
21(
rate through open market operations and probably
Prime eligible bills
23g
23(
—30 Days— through an advance in its official rediscount rate.
—60 Days—
—90 Days-Bid. Asked.
Bid. Asked.
Bid. Asked.
1 X There was a slight hardening of money rates in
2
1X
2
1X
2
Prime eligible bills
London on Thursday, with three-months bills quoted
FOR DELIVERY WITHIN THIRTY DAYS.
21( bid
Eligible member banks
23/% to 2 3-16%, compared with 2 5-32% to
at
2si bid
Eligible non-member banks
2 3-16% a week ago. This week the Bank of England
There have been no changes this week in the redis- shows a loss in gold holdings of £1,942,393, the total
count rates of the Federal Reserve banks. The standing at £155,630,794, which compares with
following is the schedule of rates now in effect for £134,269,209 a year ago. The Bank shows a reducthe various classes of paper at the different Reserve tion of 14 points in reserves to 45.51%, the lowest
since Aug. 14. On Saturday the Bank of England
banks:
gold coin, sold £329,805 in
DISCOUNT RATES OF FEDERAL RESERVE BANNS ON ALL CLASSES bought £69 in foreign
AND MATURITIES OF ELIGIBLE PAPER.
gold bars, and exported £9,000 in sovereigns. On
Monday the Bank of England received £600,000 in
Previous
Date
Rate in Effect
Rate.
Established.
on Dec. 5.
Federal Reiesip Bank.
sovereigns from abroad and sold £382,090 in gold
3X
July 3 1930
3
Bartonbars. On Tuesday the Bank sold £347,900 in gold
3
June 20 1930
214
New York
4
July 3 1930
331
Philadelphia
bars, exported £6,000 in sovereigns, and set aside
4
June 7 1930
Cleveland
33.4
4
July 18 1930
Richmond
334
in sovereigns. On Wednesday the Bank
£400,000
4
July 12 1930
Atlanta
33.4
4
June 21 1930
Chicago
33.4
£171
in gold bars, bought £16 in foreign gold
bought
4
1930
Aug. 7
Bt. Louis
334
4
Sept. 12 1930
334
Minneapolis
4
in gold bars, and exported
sold
£323,398
coin,
Aug. 15 1930
354
Kansas City
4
Sept. 9 1930
334
Dallas
4
Aug. 8 1930
314
£7,000 in sovereigns. On Thursday the Bank sold
Ban Francisco
£561,217 in gold bars and exported £15,000 in
Sterling exchange is dull and steady, fluctuating sovereigns. Practically all the bar gold sold by the
within narrow limits and on the whole unchanged Bank was taken for Paris. On Friday the Bank sold
from last week. The range this week has been from £561,217 bar gold of which it is believed £300,000 was
4.85 9-32 to 4.85 7-16 for bankers' sight bills, com- destined to France and £200,000 to £250,000 was
pared with 4.85 5-16 to 4.853/ last week. The range taken for shipment either to Belgium or Germany.
for cable transfers has been from 4.85 7-16 to 4.85M,
At the Port of New York the gold movement
a week ago. for the week ended Dec. 3, as reported by the
compared with 4.85 17-32 to 4.85
This is the period of greatest seasonal pressure Federal Reserve Bank of New York, consisted of
against sterling and with regard to New York sterling imports of $1,899,000, of which $1,618,000 came
1 1 of from Colombia and $281,000 chiefly from other
exchange is on the average but little more than/
a cent above the gold import point. The market sees Latin American countries. There were no gold
little chance of improvement in the coming weeks exports and no change in gold earmarked for foreign
except at the end of the year, when London normally account. In tabular form the gold movement at
draws on New York. Judging from the point of the Port of New York for the week ended Dec. 3,
view of money rates as between New York and as reported by the Federal Reserve Bank of New
London sterling should be firmer, but many other York, was as follows:
factors offset this influence. Three-months bills in GOLD MOVEMENT AT NEW YORK, NOV. 26 TO DEC. 3 INCL.
Exports.
London are quoted at 2 3-16% as compared with
Imports.
None.
from Colombia.
1%%@2% in New York, yet the spread has no $1,618,000
281,000 chiefly from other Latin
American countries.
stimulating effect on sterling exchange. According
to well informed authorities, one of the principal 81,899,000 total.
Net Change in Gold Earmarked for Foreign Account.
factors working for weakness of sterling in New York
None.
in
at the present is the possibility of labor troubles
gold was due to arrive
$2,500,000
Approximately
cuts
Wage
Great Britain in the next few weeks.
from
Argentina. This
yesterday
in
New
York
in
"spreadover"
a
and
proposed
have been ordered
gold
on the present
Argentine
total
the
should
bring
lower
of
effect
the
partially
offset
to
order
hours in
In
addition
to this a
$14,134,000.
wages has been rejected by the workmen. London movement to
to
amounting
$5,361,566,
shipment,
is also uneasy over the rail situation where wage sixth Argentine
York on Friday on the
cuts have been causing trouble. Events appear to left Buenos Aires for New
Approximately
World."
$3,830,000
"Western
liner
be shaping toward changes of some sort in the
during
the week,
Francisco
San
at
received
was
gold
London money market.
and
Japan
from
came
$80,000
$3,750,000
which
of
and
all
London
France continues to take gold from
China.
from
few
weeks
next
the
for
receipts of South African gold
Canadian exchange continues firm, ruling at a
have been secured for French account. Sterling
On Saturday Montreal funds
exchange fails to show any response to the gold premium generally.
premium; on Monday at par;
shipments and the sterling-franc rate is at abnorm- were at 1-32 of 1%
of
ally low levels, around 123.54-123.60. According to on Tuesday at 3-32 1% premium; on Wednesday
at 3-64 of
reliable estimates France will withdraw a further at 1-32 of 1% premium; on Thursday
1%
of
premium.
1-32
at
Friday
on
£8,000,000 gold from London before the end of the 1% premium;
Referring to day-to-day rates sterling exchange on
year, which makes the sterling situation acute.
last was steady. Bankers' sight was 4.853
Saturday
Bankers say that Chancellor Snowden is criticized
cable transfers 4.853/2@4.85 17-32. On
7-16
@4.85
in some quarters for his insistence upon easy money
was under pressure. The range was
sterling
Monday
rates for the benefit of the Treasury and as a possible
bankers' sight and 4.85 15-32@
for
4.853.1@
5's.
War
4.853/
preparation for the conversion of the
FINANCIAL CHRONICLE
4.853/ for cable transfers. On Tuesday sterling was
firmer in New York but made a new low in Paris.
The range was 4.853@4.85 15-32 for bankers' sight
and 4.853/
2@4.85% for cable transfers. On Wednesday sterling was steady. The range was 4.85 11-32
4@4.853/ for bankers'sight and 4.85 17-32©4.85 19-32
for cable transfers. On Thursday sterling was easier.
The range was 4.85 5-16©4.853/ for bankers' sight
and 4.85 9-16@4.853/
2 for cable transfers. On Friday
sterling was firmer; the range was 4.853
%@4.853/
for bankers' sight and 4.85% for cable transfers.
Closing quotations on Friday were 4.85 7-16 for de/i for cable transfers. Commercial
mand and 4.855
sight bills finished at 4.85 5-16; sixty-day bills at
4.83 7-16; ninety-day bills at 4.82 9-16; documents
for payment (60 days) at 4.83 7-16, and seven-day
grain bills at 4.85. Cotton and grain for payment
closed at 4.85 5-16.
3585
a sudden business revival would overstrain the German money market and German interests are
speculating as to the probability of an increase
in the Reichsbank's official rediscount rate. Should
the business recovery take on momentum it is
thought that the flow of foreign capital to Germany
would cause continued firmness in mark quotations.
Italian lire are steady, and were especially firm
in Monday's market. The run-up in lire to 5.243
for cable transfers is thought to have been nothing
more than a normal reaction from last week's low
of 5.22%, which resulted from apprehensions arising
from the failure of some minor Italian banks.
The London check rate on Paris closed at 123.57
on Friday of this week, compared with 123.60 on
Friday of last week. In New York sight bills on the
4 on
French center finished at 3.92/, against 3.923
Friday of last week; cable transfers at 3.93, against
3.92/, and commercial sight bills at 3.92%, against
2 for
Exchange on the Continental countries is quiet and 3.92 7-16. Antwerp belgas finished at 13.943/
steady. The French franc is firm and especially firm checks and at 13.953/2 for cable transfers, against
1 and 13.943/
with respect to sterling, and as noted above, the 13.93/
2. Final quotations for Berlin
Bank of England has lost considerable more gold to marks were 23.84 for bankers' sight bills and 23.85
France, while it is understood that practically all the for cable transfers, in comparison with 23.83 and
open market gold for some weeks ahead has been 23.84. Italian lire closed at 5.23 15-16 for bankers'
engaged for French account. The Bank of France, sight bills and 5.24 1-16 for cable transfers, against
it would seem, has been taking steps to support 5.233
4 and 5.233/2. Austrian schillings closed at
sterling exchange, and this week shows an increase of 14.07, against 14.073/
2; Exchange on Czechoslovakia
209,000,000 francs in its sight balances abroad which, at 2.96 7-16, against 2.96 5-16; on Bucharest at
it is believed, respresents the acquisition of foreign 0.593, against 0.593; on Poland at 11.21, against
exchange by the Bank in support of sterling. The 11.21; and on Finland at 2.513
4, against 2.513
4.
fact that labor troubles are anticipated in London Greek exchange closed at 1.293 for bankers' sight
accentuates the withdrawal of French private capital bills and at 1.293/2 for cable transfers, against 1.29%
from the London market, so that this week the and 1.29%.
sterling-franc rate has moved further against London.
While the Government and the Bank of France are
Exchange on the countries neutral during the war
unquestionably desirous of checking gold importa- is unchanged in all important respects from the past
tions, it is still clearly recognized that the only few weeks. For the most part the neutrals are easy
means of altering the balance of international pay- in sympathy with the easier tone of sterling and also
ments as it now exists would be the introduction on as a seasonal matter. Holland guilders are inactive
the French market of foreign securities. Before the and there is a considerable movement of Dutch funds
war France used to absorb at least 3,000,000,000 out of Amsterdam to Berlin, London, and NewYork.
gold francs annually of such new issues, but the Swiss francs are slightly firmer due largely, it is
present position of the market and of public senti- thought, to operations in connection with the Bank
ment does not appear to lend itself to such opera- for International Settlements and to some flow of
tions. The gold reserves of the Bank of France idle Dutch and French funds to Switzerland. Spanish
show an increase this week of 257,040,000 francs, pesetas continue to fluctuate rather widely owing to
the total standing at 51,966,000,000 francs, com- the unsettled feeling with regard to the drift of political positions in Spain and to failure of the Governpared with 40,808,000,000 francs a year ago.
German marks continue relatively firm, owing ment to take more decided and open steps toward
largely to the almost complete return of funds from stabilization of the peseta. However, this week
their flight abroad after the German elections in Spain sent another £1,000,000 gold to London followSeptember. German financial circles continue to ing on last week's shipment of £1,000,000 for the
show an optimistic attitude which is taken to indi- support of peseta exchange.
Bankers' sight on Amsterdam finished on Friday
cate that no serious difficulties are looked for from
the radical elements in the Reichstag. Considerable at 40.223., against 40.233/ on Friday of last week;
4 and
satisfaction is felt in German circles over the action cable transfers at 40.243/2, against 40.243
of the Cabinet in putting the financial reform plan commercial sight bills at 40.20, against 40.20. Swiss
in the form of a decree. This, it would seem, pre- francs closed at 19.37 for bankers' sight bills and at
vents any possibility of the radical element in the 19.373
4 for cable transfers, against 19.353/2 and
Copenhagen checks finished at 26.733/
2
Reichstag taking measures to hinder the passage 19.363
2, against 26.735/ and
of the bills which the financial experts agree are and cable transfers at 26.743/
4,
2. Checks on Sweden closed at 26.823
necessary to put German finances in order. Money 26.743/
4, against 26.833/
2 and
rates continue comfortable in Berlin and the credit and cable transfers at 26.833
on offer is greater than the demand. However, 26.843/2, while checks on Norway finished at 26.73
recent Berlin dispatches state that there are signs and cable transfers at 26.74, against 26.73 and
of something like a recovery in German business 26.74. Spanish pesetas finished at 11.08 for bankers'
activity and this arouses some apprehension re- sight bills and at 11.09 for cable transfers, compared
garding the sufficiency of home capital to finance with 11.10 and 11.11.
possible trade revival. Comment is general that
3586
FINANCIAL CHRONICLE
[VOL. 131.
Exchange on the South American countries contin- 497
4; Singapore at 563@56 7-16, against 563®
ues dull and there seems to be some recurrence of an 56 7-16; Bombay at 363, against 363'; and Calcutta
easier tone in both the Argentine and Brazilian units. at 3634, against 3634.
London advices indicate that bankers there hold that
the chief weakness in the Argentine situation at the
Pursuant to the requirements of Section 522 of the
present time is the position regarding foreign ex- Tariff Act of 1922, the Federal Reserve Bank is now
change. The new Government is regarded as fully certifying daily to the Secretary of the Treasury the
able to deal with any fresh political agitation which buying rate for cable transfers in the different counmay arise, but it is felt that while restoration of ex- tries of the world. We give below a record for the
change to parity depends in the first place on general week just past:
economic conditions, its permanent stability can be FOREIGN EXCHANGE RATES CERTIFIED BY FEDERAL RESERVE
BANKS TO TREASURY UNDER TARIFF ACT OF 1922.
secured only through reorganization of Argentina's
NOV. 29 TO DEC. 5 1930, INCLUSIVE.
currency on central banking lines., Bankers say that
Noon Buying Rate for Cable Transfers fn New York,
Mondory
Value in United States Money.
regarding the Brazilian situation although the excite- Country and
Unit.
Nov. 29. Dec. 1. Dec. 2. Dec. 3. Dec. 4. Dec. 5.
ment over the actual revolution has subsided, the
EUROPE$
$
$
$
S
time has come to give serious consideration to the SustrIa.
schillIng
.140876 .140817 .140685 .140688 .140745 .140823
Helgium. belga
139422 .139399 .139403 .139420 .139467 .139519
Brazilian position. It is felt that an upheaval of such Hulgaria, ley
.007169 .007166 .007166 .007177 .007166 .007169
krone .029653 .029648 .029651 .029651 .029652 .029655
a character as occurred in Brazil cannot be wholly un- ;zechoslovakia.
Denmark, krone
.267405 .267370 .267347 .267405 .267408 .267418
pound
productive of troublesome consequences. Confidence England.
sterling
4.855184 4.854627 4.855372 4.855355 4.855838 4.856022
Finland, markka
.025176 .025163 .025165 .025166 .025166 .025167
in the new Government does not in the mind of the Prance, franc
.039281 .039282 .039295 .039293 .039298 .039299
3ermany. reicbsmark .238366 .238351 .238416 .238460 .238488 .238459
3reace,
market dispose of the problem of how the revolution Holland.drachma
012953 .012941 .012943 .012940 .012944 .012945
guilder
.402379 .402323 .402373 .402443 .402414 .402423
Hungary, PeD80
.174877 .174860 .174863 .174888 .174898 .174875
is to be paid for, and there is a feeling that the market ltaly,
lira
.052348 .052349 .052406 .042406 .052402 .052405
krone
.267372 .267352 .267323 .267381 .267381 .267397
for Brazilian securities may yet receive an unpleasant 8orway.
Poland, zloty
.112085 .112125 .111985 .112010 .111985 .112115
Fortugal, escudo
.044858 .044858 .044825 .044875 .044826 .044808
reminder of this aspect of the situation. Brazilian lumanbl,
leu
.005946 .005945 .005941 .004940 .004935 .005942
basin peseta
112126 .112478 .112219 .112142 .111345 .110783
exchange continues to be nominally quoted, but at iweden.
krona
268386 .268345 .268323 .268365 .268300 .268319
franc--- .193632 .193660 .139718 .193710 .193731 .193750
generally lower levels than a week ago. Advices from Iwitteriand,
rugoalsvla. dinar- .017693 .106687 .107691 .017690 .107684 .017692
ASIARio de Janeiro indicate that the Brazilian Govern- 'AetnaChefoo tael
394583 .390000 .387500 .388125 .384166 .379168
ment has not lifted the restrictions on foreign ex- Hankow tael
.390781 .386875 .384062 .385156 .380937 .376875
Shanghai tae
.380446 .377410 .374910 .376250 .372053 .368125
change operations, and banks are limited to operations Tientsin mei
.400625 .396041 .393541 .394166
.385625
Hong Kong dollar.- .304464 .302857 .299732 .300000 .390208
.298035 .293392
totaling £5,000 per day. The restriction is *to last for Mexican dollar.
....273750
.273750 .270937 .270312 .271875 .268125 .264062
Tientsin or Peiyang
dollar
an indefinite period. On Friday $2,500,000 gold was Yuan
.275833 .273750 .272500 .274166 .270000 .266666
dollar
.272500 .270416 .289166 .270833 .266666 .263333
mita, rupee
received at New York from Argentina bringing the 'span,
.359371 .359300 .359167 .359053 .395025 .358953
yen
.495687 .495712 .495815 .495968 .495940 .496143
(S.S.) dollar .559270 .559375 .559258 .559375 .559375 .559225
total on the present movement to $14,134,000; like Singapore
NORTH AMER.dollar
1.000202 1.000088 .999926 1.000197 1.000283 1.000454
the previous shipments the metal is a direct Govern- -3anada,
Juba peso
.999287 .999225 .999131 .999131 .999131 .999109
dexico, peso
.458525 .457150 .456050 .455425 .454250 .453475
ment consignment. In addition to this a sixth ship- qewfoundland,
dollar .997625 .997750 .997625 .996968 .997937 .998037
SOUTH
A
MER.ment, totaling $5,361,566 left Buenos Aires on Friday krgentina, peso (gold) .779865
.780665 .779065 .778116 .779689 .778748
trash', milrela
*
.096400 .096600 .096285 .096000
for New York. Argentine paper pesos closed at .bile,
Peso
.120915 .120910 .121025 .121092 .121179 .121439
JrugUaV. Mee
.788725 .789972 .783799 .782944 .784430 .780000
34 7-16 for checks, as against 34 7-16 on Friday of )olombia.
peso
.965300 .965300 .965300 .965300 .965300 .965300
last week, and at 343/ for cable transfers, against •No quotations.
343/2. Brazilian milreis are nominally quoted 9.70
As the Sub-Treasury was taken over by the Fedfor bankers' sight bills and 9.75 for cable transfers, as
against 10 1-16 and 103/8. Chilean exchange closed eral Reserve Bank on Dec.6 1920, it is also no longer
at 12.15 for checks and at 12.20 for cable transfers, possible to show the effect of Government operations
against 12.15 and 12.20. Peru closed at 30.25, in the Clearing House institutions. The Federal
Reserve Bank of New York was creditor at the Clearagainst 30.50.
ing House each day as follows:
OF NEW YORK FEDERAL RESERVE BANK
Exchange on the Far Eastern countries is dull and DAILY CREDIT BALANCES
AT CLEARING HOUSE.
irregular. Japanese yen are firm and steady owing gaturday.
Monday, Tuesday, Wednesday1 Thursdly, Friday.
Aooreoate
to the strenuous efforts made by Japan to maintain Nov. 29, Dec. 1. Dec. 2. Dec. 3. Dec. 4. Dec. 5. for
1Veek.
London
S
in
yen
the
and New York by gold shipments. 124 800.000 117.000.000 168,000.000 143.9(4.000 139,008,000 121.000,000
Cr. /313.000,M
The Chinese units are off sharply as the result of the Note.-The foregoing heavy credits reflect the huge mass of checks which come
to the New York Reserve Bank from all parts of the country in the operation
of
new drop in silver prices. The silver market on the Federal Reserve System's par collection scheme. These large credit balances,
however, reflect only a part of the Reserve Bank's operations with the Clearing
Tuesday dropped Mi of a cent to $.34% per ounce in in
House institutions, as only the items payable in New York City are represented
the daily balances. The large volume of checks on Institutions located
of New York are not accounted for In arriving at these balances, as such outside
New York. This compares with the record low of do
not pass through the Clearing House but are deposited with the Federal cheeks
Reserve
$.333 reached on June 21. Following the low prices Bank for collection for the account of the local Clearing House banks.
in June a recovery in the white metal set in which
The following table indicates the amount of bulculminated in a price of $.37 on Sept. 18. Silver
lion
in the principal European banks:
brokers are at a loss to account for the present
decline in the market. There is practically no
December 4 1930.
December 6 1929.
demand from either India or China, the two main- Banks of
Gold.
SUrer.
Total.
Gold.
Maw.
Total.
stays of the silver market. Selling orders are not
£
England.- 155,630,794
155,830,794134,269,209
134,269,209
large and the market is described as drifting, with France a...415,735,31
d
415,735,318 326,466,031
d
326.466,031
Germany b'°'
c994,6 102,504,800 104.528,700
994,600 105.523.300
the buyer settling the price. Chinese exchange quota- Spain
99,258.000 28,151,000 127,409,000 102,592,000 28,359.000130.951
,000
Italy
57,243,000
57,243,000 56,025.000
56.025,000
Netheads 35,514,000 2,069,000 37,583,000 36.876,000
tions move strictly in accordance with the prices of Nat.
36,876.000
Belg_ 37,054,0
37,054.000 30,949,000 1,286,000 32.235,000
Switzered_ 25.625.000
silver; as to buy or sell exchange on China is equi- Sweden_
25,625.000 21,835,000 1.118,000 22,953,000
13,422,0001
13,422,000 13,376,000
13,376,000
Denmark
valent to buying or selling silver. Closing quotations Norway _ 9,561,000
9,561,000 9,582,000
379.000 9,961,000
8,136,00
8,136,000 8,151,000
8.151,000
for yen checks yesterday were 49.60@49%, against Tot. wk
958,689,312 31,214,600989_903.912844,649,9401 32A6,600876,786.540
49 9-16 ®49%. Hong Kong closed at 29@ Prey. week 958,421,131 31,081,600
989,502,7311843,524;62 31,985,600875,510,226
These are the gold holdings of the Bank of France as reported In the new
29 11-15, against 30%@31 1-16; Shanghai at 37(4) ofastatement.
b Gold holdings of the Bank of Germany are exclusive of goldform
the amount of. which the present year Is £4,789,000. c As of Oct. 7 held
1924.
37 1-16, against 38®38%; Manila at 498, against dabroad,
Silver Is now reported at only a trifling sum.
I
DEC. 6 1930.]
FINANCIAL CHRONICLE
3587
tion is not quite complete as a statement of the cenMr. Hoover and Congress—The Annual and sus returns, the census recognizing some 7 disBudget Messages.
tinct classes of non-working persons, of which only
unvarplain,
a
is
message
the first and probably more numerous class is menMr. Hoover's annual
nished tale which gives first place to the business tioned by Mr. Hoover. In spite, also, of Mr.
depression and unemployment relief and offers some Hoover's further statement that "the Department
wise counsel to Congress regarding economy in ap- of Labor index of employment in the larger trades
propriations. The hopeful tone which has charac- shows some decrease in employment" since April,
terized all of Mr. Hoover's recent utterances is not there is good reason for thinking that the total volabsent, and in spite of his admission that speculative ume of unemployment in the country, instead of
excesses have had a good deal to do with the busi- diminishing, has increased. The President of the
ness situation and that world over-production and American Federation of Labor, William Green,
other world causes are to be reckoned with, he still whose estimates have in the past exceeded those of
feels called upon to emphasize the great resources the government, was reported on Wednesday as esof the United States and to predict that "we will timating the number of persons out of work, exovercome world influences and will lead the march clusive of farm labor and office workers,at 4,860,000,
of prosperity as we have always done hitherto." In an increase of 360,000 since November, at which
the main, however, the message is a straightforward latter date the Department of Labor was using the
statement of what has been done by the Adminis- estimate of 3,400,000.
Mr. Hoover favors a continuance during the
tration to meet the business and unemployment
financial
the
of
exposition
winter of the temporary expansion of such governcrisis, and a summary
and other questions with which Congress will have ment activities as river and harbor work, flood conto deal. The financial references in the annual trol, public building, &c., but he nevertheless
message are brief, financial matters being now rele- issues a timely warning against undertaking
gated to the special budget message, but the latter works "that are not of sound economic purdocument, aside from statistics and certain details, pose and that •have not been subject to searchadds nothing important to what the annual message ing technical investigation, and which have
not been, given adequate consideration by the Conoutlines.
Comparing the approximate percentages of busi- gress. The volume of construction work in the govness activity for the past three months with those ernment is already at the maximum limit warranted
for the prosperous year 1928, Mr. Hoover finds by financial prudence as a continuing policy." The
decreases ranging from 6% to 20% in the value immediate problem is to increase employment durof department store sales, volume of manufactur- ing the next six months. An appropriation of from
ing and mineral production and of factory employ- $100,000,000 to $150,000,000 to accelerate emergency
ment, wholesale prices and cost of living, while employment during this period is accordingly asked
"various other indexes indicate total decrease of for, to be distributed among the various federal deactivity from 1928 of from 15% to 20%." The en- partments through a committee of the Cabinet with
couraging factors are "the fact that we are holding the President's approval. The criticism of this refrom 80% to 85% of our normal activities and in- quest, to the effect that it takes from Congress the
comes; that our major financial and industrial in- right to determine how and where the money which
stitutions have come through the storm unimpaired; it votes shall be spent, seems under the circumthat price levels of major commodities have re- stances to be somewhat strained. The condition is
mained approximately stable for some time; that a one of national emergency and the period of time
number of industries are showing signs of increas- brief and limited, and Congress, which at best will
ing demand; that the world at large is readjusting be burdened with important business during the
itself to the situation." Economic depression, how- short session, may well intrust to the President the
ever, he insists, "cannot be cured by legislative ac- expenditure at his discretion of the amount which
tion or executive pronouncement. Economic wounds he asks for. A message further explaining the
must be healed by the action of the cells of the eco- recommendation, together with a statement from the
nomic body--the producers and consumers them- Director of the Budget indicating how the fund
selves." This recovery can be expedited by co-opera- might be effectively apportioned, was sent in on
tive action, and it is to the encouragement of such Thursday, and in both houses resolutions giving
co-operation that the Federal government has ex- effect to the recommendation have been introduced.
Mr. Hoover's references to the agricultural situaerted itself in the period which the message reviews.
Summarizing briefly the co-operative efforts of the tion do not go very deeply into that subject. RelyAdministration, the States, and local governments, ing again, as is his custom, upon averages, he notes
Mr. Hoover finds that the total of construction and that while the average price of farm products has
betterment work in hand or in contemplation, the fallen to about 80% of the levels of 1928, this avervolume of which amounted roughly to $6,300,000,000 age is "greatly affected by wheat and cotton, which
have participated in worldwide overproduction"
in 1929, has risen for 1930 to about $7,000,000,000.
minimize
to
the
anxious
seems
declined to about 60% of the 1928 average. Exand
Hoover
volume
Mr.
of unemployment, although his figures, when closely cluding wheat and cotton, the average is about 84%
examined, are perhaps not lower than a fair estimate of that of 1928, while "the average wholesale prices
of the total number. He quotes the census figure of other primary goods, such as nonferrous metals,
of about 2,500,000 "wholly out of employment seek- have fallen to 76% of 1928. The price levels of our
ing for work" at the April enumeration, and notes major agricultural commodities are, in fact, higher
that there is estimated to be "a constant figure at than those in other principal producing countries,
all times of nearly 1,000,000 unemployed who are due to the combined result of the tariff and the
not without annual income but temporarily idle operations of the Farm Board." There is nothing
in the shift from one job to another." The descrip- here to indicate that Mr. Hoover has wavered in his
3588
FINANCIAL CHRONICL11
rirou 13L
devotion to high protection, or that the operations normal conditions will be heartily welcomed
by all
of the Farm Board seem to him to have been any- who believe that the less government interferen
ce
thing but wise.
with business there is, the better. His counsel of
Mr. Hoover faces frankly the unfavorable rigorous economy will, it is to be hoped, be taken
financial outlook. Treasury and budget estimates to heart by Congress. There is only too much reason
for the current year show receipts of about $430,- to fear that the scanty surplus of $30,000,000 upon
000,000 less than the estimates of a year ago, of which Mr. Hoover counts will be heavily reduced by
which $75,000,000 is ascribed to tax reduction and diminished receipts from income taxes, and that
a
the remainder to the depression. Expenditures of substantial deficit will eventually have to be faced.
the current year, on the other hand, have been in- 'Clearly, there is nothing to do but abandon the increased by about $225,000,000 through provisions come-tax cut which was made for this year, as Secfor construction work to relieve unemployment, in- retary Mellon, in his annual report submitted
to
creases in veterans' allowances, and other items. Congress on Thursday, also made quite evident
The grand total of adverse change is thus about would have to be done, and Mr. Hoover is to be
$655,000,000. Offsets of $123,000,000 of estimated commended for approving it. The best service
that
surplus of a year ago, $185,000,000 of foreign debts Congress can render will be to confine itself strictly
interest payments applied to current expenditures, to necessary legislation and keep appropriat
ions
repayments by the Farm Board which have reduced down, while at the same time providing whatever
its demand upon the Treasury by $100,000,000, and may be imperative for such relief of unemploym
ent
$67,000,000 of various economies cut down the es- distress as the government may properly give.
timated deficit to about $180,000,000. This deficit
Requests of the Railroads.
the budget message proposes to treat, not by reducAs previously noted by us, the Association of Railing the statutory redemption of the public debt now
amounting to about 40,000,000 per annum, but way Executives, comprising every Class I railroad
"by reducing the general fund balance from the in the country, has determined to demand from
amount in it at the beginning of the year, supple- Congress sweeping legislative relief. The relief to
mented if necessary by temporary borrowing by the be asked, bills for which are now under preparation,
Treasury." The budget for the fiscal year 1932 will cover, in the main, the following aims:
"To extend the jurisdiction of the Inter-State Commerce
shows estimated receipts of about $4,085,000,000 "if
the temporary tax reduction of last year be discon- Commission to coastal steamship lines and provide for their
tinued," as Mr. Hoover thinks it should, and esti- regulation.
"To
mated expenditures of $4,054,000,000 including the and standardize coastal steamship service requirements
to control their placing in operation through the issupostal deficit. With a resulting surplus of only ance of certificates of convenience
and necessity.
about $30,000,000, Mr. Hoover is justified in remind"To amend the Panama Canal Act to enable the railroads
ing Congress that "most rigid economy is therefore to operate steamship lines coastally and on the Great Lakes,
both on the same terms under which steamship lines operate.
necessary to avoid increase in taxes."
"To provide for the regulation of inter-State passenger
The remaining topics in the annual message are
omnibus movement.
treated with brevity. The army and navy "are being
"To provide authority for railroads to operate trucks and
maintained at a high state of efficiency," and fur- omnibuses.
ther naval construction is urged, although the fig"To provide for the impost of commercial motor vehicle
ures set out in the budget message show, according licensing fees adequate to the cost of maintaining highways.
"To amend the Transportation 'Act so that pipe line comto the Associated Press, that "of every dollar which
mon
carriers shall be subject to the same restrictions as to
must be spent next fiscal year, President Hoover
estimates 41.11 cents must go to support the mili- the transportation of commodities in which they are interested, directly or indirectly, as the railways now are."
tary functions of the government." "Effective regu,So rapid has been the growth of these new methlation of inter-State electrical power" is recomods of transportation, so severely are they cutting
mended once more, together with further legislation
into the normal revenues of the railroads, so importo facilitate railway consolidation. The repeal of
tant a possession of the people is our great railway
the Sherman act is not favored, for the reason that
system, that it would be wise to devote an entire
"the prevention of monopolies is of most vital public
session of Congress to these measures, if Congress
importance," but the interpretation of the anti-trust
could sit as a non-partisan economic body, non-politlaws by the courts and changes in business make an
ical and free from bias, but that would be too much
inquiry into the effect of the laws advisable, espeto expect. Not that we can look with complacency
cially in regard to their bearing upon the use of
upon further grants of power to the Inter-State Comnatural resources. The tax on capital gains should
merce Commission, but if one common carrier is to
also be studied, the immigration laws revised "upon be
chained by extraneous rules, why not all? There
a more limited and more selective basis," the laws is
no doubt whatever that the railroads—entirely
for the deportation of criminal aliens strengthened,
apart from the frightful losses they are now sufferfederal ownership instead of leasing of postofice ing
by reason of the industrial prostration through
buildings provided for, and the veterans' service exwhich the country is now passing—are losing revamined with a view to improvement. A special mesenues rapidly and constantly in the way indicated
sage submitting to the Senate the World Court
above, even against the natural increase in populaprotocols is promised.
tion and business. The following table is illuminatMr. Hoover will undoubtedly be criticized for his ing
on that point:
failure to offer any suggestion for relieving the
Gross Ton Miles Passenger Miles
RR. Traffic Growth—
% Increase.
present business depression through government
% Increase.
From 1890 to 1900
85.8
35.4
action, and for his intimation that the rest of the From
1900 to 1910
80.1
101.6
world has more to answer for than the United States, From 1910 to 1920
62.2
46.5
8.8
but his emphasis upon the obligation of producers From 1920 to 1929
* Passenger traffic decreased 34.2% in the years 1920 to
and consumers to co-operate in efforts to restore 1929.
DEC.6 1930.1
—
FINANCIAL CHRONICLE
We are not lacking in "learned" discussions, inside and outside of Congress, on "production" and
"consumption." We hear many complaints of the
unevenness of "distribution" of commodities and the
costs thereof. We plunge the Government headlong
into such experiments as the Federal Farm Board.
But we do not seem to realize that the life and
success of our railroads is paramount in any consideration of these problems. There is little effort
to aid them by removing obstacles to their free and
necessary operation. In an abstract sense the people
own these roads. Year by year their actual, concrete
ownership by citizens as stockholders is increasing.
We have not been able to fix their value in dollars,
nor can we arrive at a fair method of computation.
But regarded as a property-unit owned thus by the
people their unestimated value runs into tens of
billions of dollars. The Inter-State Commerce Commission is intended as a State regulatory body—but
without public ownership this body must always be
at sea in establishing "reasonable rates." And the
roads are tied to a power that, while ostensibly nonpolitical, is still the creature of a political Congress.
Under these circumstances "industrial liberty" becomes a term without a distinctive meaning.
It is said that the roads, in asking these relief
measures at the hands of Congress, are not demanding a cessation of progress, but for a fair regulation
of industries engaged in like transportation as themselves. Granting this, however, whether regulated
or unregulated, these new methods will grow, and
in the final end the people must decide whether or
not this is real "progress." The railroads were first
in the field. They have been supported by the
patronage of the people. They have had a varying
and sometimes stormy experience. They have
-been
subjected to a prejudice of a selfish and party-political origin, which they have largely overcome. They
were almost ruined by governmental seizure and
operation during the war. Returned to their rightful owners, they have grown rapidly in perfected
service and are to-day in better condition than ever
before. And considered as a property-unit of the
people, would it be common business sense to hold
them in leash while unregulated means of transport
encroach upon their profits and drive them into
bankruptcy?
One can but look casually upon the increase of
bus lines everywhere over the country to realize
that the people as patrons have little thought of
what constitutes real progress and little care for
the fate of the roads. There is little doubt that
but for the restrictions put upon them by "regulation" they could have held their own against all
these modern methods and triumphed over all competition. Now, they are compelled to acknowledge
these competitors and ask for an even chance
through like "regulation." To suggest that the
people, as individuals, should sustain and protect
this vast and valuable property is perhaps not worth
while, but here, too, lies a "responsibility" it is
worth while to acknowledge. It is the old question
of the new thing and the old, and whether in fact
the new is always "progress." From the old prejudice to the present carelessness of the result of suddenly changed patronage is a rapid step, and, in a
large sense, a thoughtless one.
We will not at this time consider specifically these
several requests. Spending billions on the construction of concrete highways across the continent and
3589
up and down the States, it is apparent that the people have a direct stake in the preservation of their
tax expenditures. To turn these highways loose for
commercial exploitation by bus lines without more
than a cursory regulation is not in the public interest, regardless of the railroads. We are not so certain of pipe-line competition now growing by leaps
and bounds. These must obtain the right-of-way,
and thus subject themselves to law and laws.'Coastwise traffic is another matter. So, also, soon will
appear river traffic under internal waterway improvements. It cannot fairly be asserted that these
progressive steps must be held in abeyance to the
interests of the railroads. But to set up or permit
a competitive business on State-owned highways at
no cost to these companies requires a question mark.
These railroads have what may be termed vested
interests. They represent a hundred years of earnest development. They are permanent and not flyby-night corporations. They have met numerous
requirements of the Inter-State Commerce Commission regardless really of their fiscal condition. They
have installed block signals, air-brakes, safety devices of all kinds—and are now engaged in removing
grade-crossings—all at heavy expense. They have
builded great city terminals and constructed union
stations. Save for the last, these omnibus lines have
done none of these things. The railroads have constantly improved their service and lowered the cost
of operation looking to reduced passenger and
freight charges. They pay enormous taxes, and
suffer from poor crops and the calamities of nature.
And with it all they are the most valuable possession
of the people, the best organized and most efficient
single industry. They deserve the watch care of
Congress and the support and sympathy of the
citizenry.
Business and Profession.
Colonel Robert McCormick, publisher of the
Chicago "Tribune," in the opening lecture, under
the Paul Block Foundation at Yale, said: "Journalism is a profession—an organized profession.
But it is not a business in the sense that the dry
goods store, the bank, or the factory is a business.
I would say that the newspaper plant is like the
library of a lawyer or the instrument of a surgeon—
a valuable thing when it is in the right hands."
Further, he is quoted as saying "that the newspaper
had invariably stimulated the emancipation of man
and woman in every field of life, and that this was
its role in human progress." . . . Speaking on
"The Newspaper As a Business Enterprise," he said
that,"paradoxically, he did not call the newspaper a
business enterprise, but a dynamic human force in
progressive civilization." . . . "The newspaper," he insisted, "was not the result of a business organization, but the achievement of an individual or a happy combination of individuals, and
that with the passing of these the newspaper would
fall into a slow and steady decline until it came into
possession of another man or group of men suited
to the occasion." . . . "That these men can be
produced at will by a board of directors, representing stockholders, as in the case of banks and railroads, the evidence of the past does not indicate."
But a few days after the delivery of this address
its pith and point is brought out by the action of the
Illinois Press Association in the inauguration of an
editors' Hall of Fame, of which an account reads:
3590
FINANCIAL CHRONICLE
"Bronze busts of eight outstanding figures in the
newspaper chronicles of the State and nation were
unveiled in the auditorium on the University of
Illinois campus as the nucleus of the gallery sponsored by the Illinois Press Association." In this list
of the early editors thus commemorated we find the
following nationally known and revered names
among others not, perhaps, so well known: Victor
Freemont Lawson, 18504925, editor and publisher
of the Chicago "Daily News"; Joseph Meharry
Medi11, 1823-1899, builder of the Chicago "Tribune";
Elijah Parish Lovejoy, 1802-1837, martyred antislavery editor of the Alton "Observer," and Edward
Wyllds Scripps, 1845-1926, originator of the -United
Press, N. E. A., and other press associations. These
men were not only pioneers in the "profession," they
were developers of the form, scope and policy of the
newspaper as we know it in its best sense of to-day,
albeit the "press" has undergone huge changes from
the primitive issues they originally sponsored. In
this respect the lifework of Lawson, Medi11, and
Scripps is indelibly preserved in the newspaper of
the present time.
In carefully characterizing the newspaper as now
conducted we are disposed to use the conjunction
and, and say it is a profession and business. We
place "profession" first for on its mind and purpose
depends its chief value. On its "business" depend
its strength and success. These two phases are intimately associated, are sympathetic, and determine
its course. As a paper leans toward pure sensationalism in order to attract readers and advertisers, it
not only loses a part of its dignity but interferes
with its independent purpose to advance human welfare. On the other hand the newspaper must live—
must meet all competition by "business" methods.
Yet business rightly conducted is on an ever higher
plane, and there is nothing to fear in this direction
provided there is no sacrifice of principle and purpose to monetary success. Nevertheless, while this
sympathetic association exists between the editorial
and business departments they are widely separated
by their very nature. The "news" has come to cover
the world. The editorial comment on the news is
guided by the innate purpose of the public good.
The '"news" embraces city, country, world, all
activities, interests. Editorial comment must be
more specific. Yet the editorial chair sweeps the
world of news with the telescope of the telegraph,
cable and wireless. And just as, according to a
recent utterance of President Hoover, the sum of
our civilization is the sum of our activities, thoughts
and purposes as individual citizens, so editorial
opinion is made up of this wide view of human
affairs. It does not and cannot ask permission of
the business office for its expressions. Where the
editor and publisher are one there may be a unified
direction of all comment and all business. But, ag
said before, there is no conflict, no subtle purpose
here. The editor in his "sanctum," the business manager in his office, though they may be invested in
one man, the same man, are separate and apart.
They are not thinking of each other. They are not
playing into each other's hand. If and when they
do they are sacrificing independence to expediency.
The paper becomes wobbly and uncertain. It is
blown hither and thither by the currents of society,
politics, and trade. It becomes all things to all men.
There is more to be read between the lines than the
public appreciates. Every day and week, even in
[VOL. 131.
the mere printing of the news, much is discarded.
The editor studies the tendencies and trends in all
the news that comes under his eye. He selects, discriminates, divides. His opinion is gathered from
wide observation, intense contemplation, a fine
sense of responsibility, and a courageous devotion
to an ideal. To call up the circulation and advertising departments for permission to comment, and
for the right to criticize would be fatal to the soul
of the journal. It simply is not done.
Many try to read a business design into the editorial policies. They see a sinister power behind
every course that is taken. The complexities of the
business interests themselves, their , differences,
distinctions and oppositions, ought to show the folly
of this 'suspicion. Yet, and we may repeat the
thought, the good of the people is embodied in good
"business." To advocate freedom and enterprise
in this business world can never be contrary to the
public good. And so broad is the field, so extensive
the enterprises, so complex the endeavors, that the
editorial purpose which binds itself to any form of
favoritism must soon find it makes as many enemies
as supposed friends. The editor and his assistants
are in truth engaged in a "profession." They are
teachers of the times. They mould human thought—
and yet their own work does not "settle anything."
The people think for themselves. They read the editorial page for views of other minds, for pointers
as to the importance of news events, for independent
discussions to which they may give assent or dissent.
New Orleans Cotton Exchange Declares
Opposition to Farm Board Policy.
The New Orleans Cotton Exchange has joined the
constantly swelling ranks of those who are opposed
to the policy of the United States Government engaging in private business. Diplomatic reasons
might have prompted the New Orleans Exchange to
remain discreetly silent on a subject which is now
engrossing the attention of business interests generally. However, the sad state in which the cotton
industry now finds itself as a result of Government
intervention in that particular line of business appeared to make it incumbent for the Board of Directors of the New Orleans institution to review present
conditions and to place the responsibility where it
justly belongs. This it has done clearly and boldly,
in the following impressive language:
"Under a mistaken impression that values were
unfavorably influenced by over-speculation, when,
in fact, the market was suffering from absence of
speculative confidence, the United States Senate
appointed a committee of investigation. The committee met in December, but, needless to say, it
exerted no influence. This was followed later on by
the operations of the Government Farm Board,
which, in its attempt to check the downward course
of values, entered into a huge speculation, taking,
it is stated, upwards of a million and a quarter of
bales to be held off the market until such time as
it may be deemed proper to sell. Whatever may
have been the temporary effect of this move, the
fact remains that the Farm Board was helpless to
stem the decline in values which not only reached
their lowest point for the season in July 1930, but
continued to drop with the advent of the new crop
year, until the October 1930 average for middling,
/s, was 9.82c. a pound, a sheer decline from the July
7
1929 values of nearly $42.50 for a 500-pound bale.
"As stated by Secretary Hester, columns upon
columns have appeared in the public prints and else-
DEc. 6 1930.]
FINANCIAL CHRONICLE
3591
of the Administration's plans designed to prevent Congress
where, seriously criticizing the United States Gov- from
insisting upon a debenture scheme either at the coming
ernment for going into business in competition with regular session or at a special session to be called. The
its private citizens. The final outcome, of course, unattached observer may very well begin to wonder just
remains to be seen, though similar efforts in the past what there is in a debenture scheme that would be worse
by other governments have resulted in failures. We than an indefinite continuance of some of the operations of
know, however, in face of governmental efforts in the Farm Board. Indeed, it is a fair question whether or not
the way of regulation by Washington and market we are justified in regretting that a full-fledged debenture
efforts by the Farm Board, compared with the July plan was not adopted early last year instead of the present
not be true that had such
1929 average that there has been a shrinkage which arrangement. It may or may present
time would be worse
the
at
conditions
case,
the
been
crop,
bale
500-pound
14,438,000
of
total
reads for a
are now. In any case, however, they are bad
they
than
such as estimated by the Government for the current enough now and from all appearances a debenture scheme
heads.
year, of something like 614 millions of dollars. This still hangs like the sword of Damocles over ourwhole
is
to believe that the country as a
is about the face of the figures as they now read, There is reason
form that it has been dosed
the
in
relief
farm
of
tired
and
sick
but it does not by any means follow that they will out to us to date. Had that relief taken the form of a debenhold with an improvement that is hoped for, and it ture arrangement, we should doubtless by now be as sick
is believed may follow for the rest of the season, as of that—a gain by no means to be scorned.
can
But however all these things may be, the average man
the mills of the world must have cotton and there is hardly
refrain from the thought that President Hoover,
a growing determination not to part with holdings were he willing even at this late date to take a firm stand
to
unless at better prices."
against these eternal and unsound farm subsidies and for
effort with a broad-gauged program
that
accompany
Getting down to the heart of the trouble with the genuinely fair treatment for agriculture, could make definite
to
present cotton situation, the New Orleans Cotton headway against the current that seems on the surface
disaster. There is reason to bllieve
toward
us
sweeping
be
Exchange Board diagnoses the case as follows:
that the President at least is aware of the dangers inherent iny
impossibilit
"The instant need, however, is the instillation of the operations of the Farm Board and of the are
now being
by means that
good
permanent
ng
accomplishi
of
of
removal
by
which
secured
can
be
best
confidence
A number of outgivings from the White House
employed..
obstacles which have in a manner assisted in bring- have seemed to indicate such a realization on the part of
ing about existing conditions. Naturally,individual the President. Yet,despite this fact, actions seem to suggest
and of dealing with the situation by
speculators are averse to competing with the Gov- an attitude of temporizing
the dog that is doing the biting.
of
hair
a
with
it
treating
ernment, and what with the constant interference The state of affairs is one that calls for direct, frank,forceful
by Congress and the operations of the Farm Board, policies.
One thing is certain, that a continuance of present counsels
the life of speculation and investment has been more
weakness, hesitancy and compromise will succeed only
of
y
which
successfull
initiative,
Private
or less stifled.
a bad situation worse.
making
in
handled the monster crops of 1925 and 1926, and
even far more difficult situations can do the same
Book Notice.
with the present situation, provided the Government
affords relief by amendment of the Farm Relief THE UNITED KINGDOM: AN INDUSTRIAL, COMMERCIAL AND
FINANCIAL HANDBOOK, By Hugh Butler, American
measure or some assurance of 'hands off.' The
not
into
enter
the matter.
Trade Commissioner, and officers of the United States
methods of co-operation do
Department of Commerce and Department of State,
The farmer should always be entitled to dispose
Washington: Government Printing Office. For sale
of his produce through co-operative organizations or
by the Superintendent of Documents at $1.75.
are
both
may
desire;
he
trade
as
methods
merchants
This is probably the most elaborate and most useful suropen to fair, legitimate competition for business, but
of the industry, commerce, and finances of the United
vey
the
use
of
and
ce
t
interferen
t
Governmen
Governmen
volume. The work,
funds against the business men who furnish such Kingdom that is available in a single a number of maps
and includes
pages
953
to
extends
which
and
are
unnatural
unecofunds through taxation
divided into four parts. Part I, dealnomical, and must certainly fall of their own weight, and illustrations, is factors in British industry and trade,
general
the
with
ing
though not without inflicting serious injury to all
principal commodity groups such as coal, maand sundry, including those for whom such meas- covers the
&c., presenting under each head "the essentextiles,
chinery,
ures are claimed to have been enacted."
British production and export and
regarding
matter
tial
This is a strong indictment that the directors of the various phases of the British market for imported goods,
the New Orleans Cotton Exchange have framed considered especially from the point of view of American
against the Federal Farm Board policy. But appar- trade." A discussion of British overseas trade and of
on facilities also falls into
ently it voices the sentiments of the cotton trade transportation and communicati
section.
this
a
in
and,
measure, of busigenerally in the South,
Part II deals with "the taxation of business, banking
ness people throughout the whole United States. practices, oversea investments, insurance, and public
Even the financial interests of the country are finance." Part III, on selling in the British market, takes
directly concerned in this matter, as the Federal up such matters as the selection of representatives and
Farm Board, having used up practically $150,000,000 problems of advertising, distribution, and tariffs. Some
ordinary living conor more of the taxpayers' money in unprofitable brief but important information about IV is devoted exPart
also
included.
is
England
in
ditions
wheat and cotton deals, is now on the eve of applying
clusively to Northern Ireland.
to Congress for another big appropriation. If this adThe amount of information brought together in this volditional appropriation is made to the Farm Board,it ume is very great, and what is offered is rendered more
seems more than likely that the income tax will have valuable by frequent comparison with pre-war conditions.
to be increased to make up the deficitin public funds. Part I, on industry and commerce, has some excellent introprices; labor,
The logical thing to do, therefore, would seem to be ductory chapters on production, costs, and
industrial strucand
and
costs,
living
wages,
nt,
unemployme
for the business and financial interests of the counture and efficiency, and, in addition, a long chapter on
try to combine their forces and fight against any British agriculture and the trade in agricultural products.
further appropriations for farm relief purposes. A chapter on public finance (the budget, taxation, national
This would be the most effective method of getting debt, and the Bank of England) is included in Part II, along
the Government out of the cotton and grain business. with accounts of banking, insurance, and overseas invest-
The Operations of the Federal Farm Board—
Warding Off Debentures.
(Editorial in New York "Journal of Commerce" Nov. 19.1
ments. The remarks on the special characteristics and
peculiarities of the British market should prove of distinct
practical value to American firms doing business in Great
Britain. The statistical material is, in general, brought
down to 1928, the latest date at which official reports are
Word comes from Washington that recent purchases of
wheat futures by the Farm Board are to be regarded as a part available.
••••-
3592
FINANCIAL CHRONICLE
[VOL. 131.
Message of President Hoover to Congress—Appropriation of from $100,000,000 to
$150,000,000 Asked for Construction Work to Help Unemployment Conditions—Appropriation for Seed and Feed Loans for Farmers Also Proposed—
Deficit Estimated of About $180,000,000 in Government Revenues—Legislation Asked to Further Railroad Consolidation Capital-Gains Tax and
Anti-Trust Laws to Be Subject of Inquiry—Message on World Court Later.
With the convening of the third and final session of the
71st Congress on Monday, Dec. 1, the President's Annual
Message to that body was presented to it on the following
day, Dec. 2, when it was read in both the Senate and the
House. President Hoover's remarks at the outset dealt
with the economic depression of the past year, and in stating
that "the world at large is readjusting itself to the situation,"
he made the further comment that "we should remember
that these occasions have been met many times before, that
they are but temporary, that our country is to-day stronger
and richer in resources, in equipment, in skill than ever in
its history." He went on to say: "We are in an extraordinary degree self-sustaining, we will overcome world influences
and will lead the march of prosperity as we have always done
hitherto." The various measures undertaken to relieve the
unemployment conditions were alluded to by the President—
these including the action taken by National, State and local
governments, as well as the co-operation of business and
industry. According to the President, "the number of
those wholly out of employment seeking for work was
accurately determined by the Census of last April as about
2,500,000. He added: "The Department of Labor index
of employment in the larger trades shows some decrease in
employment since that time. The problem from a relief
point of view is somewhat less than the published estimates
of the number of unemployed would indicate." The President had previously made known his intention (referred to
in our issue of Nov. 15, page 3135) to recommend to Congress "a special emergency appropriation to be applied to
the further intensification of public works, public buildings
and other forms of Federal construction," the proposed
program being in addition to that already provided for
involving an expenditure of $500,000,000. In his Message
to Congress this week he said:
I have canvassed the departments of the Government as to the maximum
amount that can be properly added to our present expenditure to accelerate
all construction during the next six months, and I feel warranted in asking
the Congress for an appropriation of from $100,000,000 to $150,000,000
to provide such further employment in this emergency. In connection
therewith, we need some authorisy to make enlarged temporary advances
of Federal highway aid to the States.
I recommend that this appropriation be made distributable to the different departments upon recommendation of a committee of the Cabinet
and approval by the President. Its application to works already authorized by the Congress assures its use in directions of economic importance
and to public welfare. Such action will imply an expenditure upon construction of all kinds of over $650.000.000 during the next twelve months.
The President also directed his remarks to "the worldwide depression" affecting "agriculture in common with other
industries," and to the drouth suffered in the agricultural
regions, and in behalf of the farmers he recommended that
"an appropriation should be made to the Department of
Agriculture to be loaned for the purpose of seed and feed for
animals." The declining revenues of the Government were
also referred to in the President's annual message, in which
he reported an estimated deficit of about $180,000,000
for the present fiscal year. The Government finances were
dealt with in More detail by the President in his budget
message, sent to Congress on Dec. 3, and which will be found
elsewhere in this issue of our paper. In recommending in
his annual message that Congress institute an inquiry into
some aspects of the economic working of the anti-trust laws,
the President said:
I do not favor repeal of the Sherman Act. The prevention of monopolies
is of most vital public Importance. Competition is not only the basis of
protection to the consumer, but Is the incentive to progress. However,
the interpretation of these laws by the courts, the changes In business,
especially in the economic effects upon those enterprises closely related
to the use of the natural resources of the country, make such an inquiry
advisable.
The producers of these materials assert that certain unfortunate results
of wasteful and destructive use of these natural resources, together with
a destructive competition which impoverishes both operator and worker.
Can not be remedied because of the prohibitive interpretation of the antitrust laws. The well-known condition of the bituminous coal industry is
an Illustration.
The President pointed out
necessary to facilitate railroad
to electric power, he made the
previous message recommended
State electrical power, and he noted that "such regulation
should preserve the independence and responsibility of the
States."
As to legislation in behalf of Veterans the President said:
The nation has generously expanded its care for veterans. The consolidation of all veterans' activities into the Veterans' Administration has
produce substantial administrative economies. The consolidation also
brings emphasis to the inequalities in service and allowances. The whole
subject is under study of the administrator, and I recommend it should
also be examined by the committees of the Congress.
With respect to the "capital-gains tax the President
stated that "it is urged by many thoughtful citizens that the
peculiar economic effect of the income tax on so-called capital
gains at the present rate is to enhance speculative inflation
and likewise impede business recovery. I believe this to
be the case and I recommend that a study be made of the
economic effects of this tax and of its relation to the general
structure of our income tax law." A revision of our immigration laws "upon a more limited and more selective basis,
flexible to the needs of the country" was among the recommendations of the President, who also urged "the strengthening of our deportation laws so as to more fully rid ourselves
of criminal aliens." The President reviewed the legislation
completed at the last session of Congress and noted that
"the Congress has before it legislation partially completed
in the last sitting in respect to Muscle Shoals, but regulation,
relief of congestion in the courts, reorganization of border
patrol in prevention of smuggling, law enforcement in the
District of Columbia, and other subjects." It is desirable
he said that these measures should be completed. The
President stated that "our relations with foreign countries
have been maintained upon a high basis of cordiality and
good will, and he brought his message to a close with the
statement that "I shall, in a special message, lay before
the Senate the protocols covering the statutes of the World
Court which have been revised to accord with the sense of
previous Senate reservations."
The meisage in full follows:
MESSAGE
To the Senate and House of Representatives:
I have the honor to comply with the requirement of the Constitution
that J should lay before the Congress information as to the state
of the
Union, and recommend consideration of such measures as are necessary
and expedient.
Substantial progress has been made during the year in national peace
and security; the fundamental strength of the Nation's economic life is
unimpaired education and scientific discovery have made advances: our
country is more alive to its problems of moral and spiritual welfare.
ECONOMIC SITUATION.
During the past 12 months we have suffered with other Nations from
economic depression.
The origins of this depression lie to some extent within our own
borders through a speculative period which diverted capital and energy
Into speculation rather than constructive enterprise. Had overspeculation in securities been the only force operating, we should have seen
recovery many months ago, as these particular dislocations have generally readjusted themselves.
Other deep-seated causes have been in action, however, chiefly the
world-wide overproduction beyond even the demand of prosperous
times for such important basic commodities as wheat, lubber, coffee,
sugar,copper,silver, zinc, to some extent cotton, and other raw materials.
The cumulative effects of demoralizing price falls of these important
commodities in the process of adjustment of production to world consumption have produced financial crises in many countries and have
diminished the buying power of these countries for imported goods to a
degree which extended the difficulties farther afield by creating unemployment in all the industrial nations. The political agitation in
Asia; revolutions in South America and political unrest in some European States: the methods of sale by Russia of her increasing agricultural
exports to European markets and our own drouth—have all contributed
to prolong and deepen the depression.
In the larger view the major forces of the depression now lie outside
of the United States, and ow recuperation has been retarded by the unwarranted degree of fear and apprehension created by these outside forces.
The extent of the depression is indicated by the following approximate
percentages of activity during the past three months as compared with
the highly prosperous year of 1928:
Value of department store sales
Volume of manufacturing production
Volume of mineral production
Volume of factory employment
Total of bank deposits
Wholesale prices—all commodities
Cost of living
93% of 1928
80% of 1928
90% of 1928
84% of 1928
105% of 1928
83% of 1928
94% of 1928
Various other indexes indicate total decrease of activity from 1928 of
from 15 to 20%.
There are many factors which give encouragement for the future.
that "further legislation is
consolidation," with regard
statement that he had in a
effective regulation of inter- The fact that we are holding from 80 to 85% of our normal activities
DEC. 6 1930.]
FINANCIAL CHRONICLE
3593
and incomes; that our major financial and industrial institutions have undertake works that are not of sound economic purpose and that have
come through the storm unimpaired; that price levels of major commodi- not been subject to searching technical investigation, and which have not
ties have remained approximately stable for some time; that a number been given adequate consideration by the Congress. The volume of
of industries are showing signs of increasing demand; that the world construction work in the Government is already at the maximum limit
at large Is readjusting itself to the situation; all reflect grounds for warranted by financial prudence as a continuing policy. To increase
confidence. We'should remember that these occasions have been met taxation for purposes of construction work defeats its own purpose,
many times before, that they are but temporary, that our country is as such taxes directly diminish employment in private industry. Again
to-day stronger and richer in resources, in equipment, in skill, than ever any kind of construction requires, after its authorization, a considerable
in its history. We are in an extraordinary degree self-sustaining, we time before labor can be employed in which to make engineering, archiwill overcome world influences and will lead the march of prosperity tectural, and legal preparations. Our immediate problem is the increase
as we have always done hitherto.
of employment for the next six months, and new plans which do not proEconomic depression can not be cured by legislative action or execu- duce such immediate result or which extend commitments beyond this
pronouncement.
tive
Economic wounds must be healed by the action period are not warranted.
of the cells of the economic body—the producers and consumers themThe enlarged rivers and harbors, public building, and highway plans
selves. Recovery can be expedited and its effects mitigated by co- authorized by the Congress last session, however, offer an opportunity
operative action. That cooperation requires that every individual should for assistance by the temporary acceleration of construction of these
sustain faith and courage; that each should maintain his self-reliance; programs even faster than originally planned, especially if the technical
that each and every one should search for method of improving his requirements of the laws which entail great delays could be amended in
business or service; that the vast majority whose income is unimpaired such fasion as to speed up acquirements of land and the letting of contracts
should not hoard out of fear but should pursue their normal living and
With view, however, to the possible need for acceleration, we,immedirecreations; that each should seek to assist his neighbors who may be ately upon receiving those authorities from the Congress five months
less fortunate; that each industry should assist its own employees; that ago, began the necessary technical work in preparation for such possible
each community and each State should assume its full responsibilities eventuality. I have canvassed the departments of the Government as
for organization of employment and relief of distress with that sturdiness to the maximum amount that can be properly added to our present
and independence which built a great Nation.
expenditure to accelerate all construction during the next six months,
Our people are responding to these impulses in remarkable degree.
and J feel warranted in asking the Congress for an appropriation of from
The best contribution of government lies in encouragement of this $100,000,000 to $150,000,000 to provide such further employment in
voluntary cooperation in the community. The Government, National, this emergency. In connection therewith we need some authority to
State, and local, can join with the community in such programs and do make enlarged temporary advances of Federal-highway aid to the States.
its part. A year ago I, together with other officers of the Government,
recommend that this appropriation be made distributable to the
Initiated extensive cooperative measures throughout the country.
different departments upon recommendation of a committee of the
The first of these measures was an agreement of leading employers Cabinet and approval by the President. Its application to works already
to maintain the standards of wages and of labor leaders to use their authorized by the Congress assures its use in directions of economic
Influence against strife. In a large sense these undertakings have importance and to public welfare. Such action will imply an expenditure
been adhered to and we have not witnessed the usual reductions of upon construction of all kinds of over $650,000,000 during the next
wages which have always heretofore marked depressions. The index twelve months.
of union wage scales shows them to be to-day fully up to the level of
AGRICULTURE.
any of the previous three years. In consequence the buying power of
The world-wide depression has affected agriculture in common with all
the country has been much larger than would otherwise have been the other industries. The average price of farm produce has fallen to about
case. Of equal importance the Nation has had unusual peace in in- 80% of the levels of 1928. This average is, however, greatly affected by
dustry and freedom from the public disorder which has characterized wheat and cotton, which have participated in world-wide overproduction
previous depressions.
and have fallen to about 60% of the average price of the year 1928.
The second direction of co-operation has been that our Governments, Excluding these commodities, the prices of all other agricultural products
National, State and local, the industries and business so distribute are about 84% of those of 1928. The average wholesale prices of other
employment as to give work to the maximum number of employees.
primary goods, such as nonferrous metals, have fallen to 76% of 1928.
The third direction of co-operation has been to maintain and even
The price levels of our major agricultural commodities are, in fact,
extend construction work and betterments in anticipation of the future. higher than those in other principal producing countries, due to the comIt has been the universal experience in previous depressions that public bined results of the tariff and the operations of the Farm Board. For
works and private construction have fallen off rapidly with the general instance, wheat prices at Minneapolis are about 30% higher than at
tide of depression. Of this occasion, however, the increased authoriza- Winnipeg, and at Chicago they are about 20% higher than at Buenos
tion and generous appropriations by the Congress and the action of Aires. Corn prices at Chicago are over twice as high as at Buenos Aires.
States and municipalities have resulted in the expansion of public con- Wool prices average more than 80% higher in this country than abroad,
struction to an amount even above that in the most prosperous years. and butter is 30% higher in New York City than in Copenhagen.
In addition the co-operation of public utilities, railways, and other large
Aside from the misfortune to agriculture of the world-wide depression
organizations has been generously given in construction and betterment we have had the most severe drouth. It has affected particularly the
work in anticipation of future need. The Department of Commerce States bordering on the Potomac, Ohio and Lower Mississippi Rivers,
advises me that as a result, the volume of this type of construction work, with some areas in Montana, Kansas, Oklahoma and Texas. It has
which amounted to roughly $6,300,000,000 in 1929, instead of decreasing found its major expression in the shortage of pasturage and a shrinkage
will show a total of about $7,000,000,000 for 1930. There has, of course, in the corn crop from an average of about 2,800,000,000 bushels to about
been a substantial decrease in the types of construction which could not 2,090,000,000 bushels.
be undertaken in advance of need.
On Aug. 14 I called a conference of the Governors of the most acutely
The fourth direction of co-operation was the organization in such States affected States, and as a result of its conclusions I appointed a National
and municipalities, as was deemed necessary, of committees to organize committee comprising the heads of the important Federal agencies under
local employment, to provide for employment agencies, and to effect the Chairmanship of the Secretary of Agriculture. The Governors in
relief of distress.
turn have appointed State committees representative of the farmers,
The result of magnificent co-operation throughout the country has bankers, business men, and the Red Cross, and subsidiary committees
been that actual suffering has been kept to a minimum during the have been established in most of the acutely affected counties. Railway
past 12 months, and our unemployment has been far less In propor- rates were reduced on feed and livestock in and out of the drouth areas,
tion than in other large industrial countries. Some time ago it be- and over 50,000 cars of such products have been transported under these
came evident that unemployment would continue over the winter and reduced rates. The Red Cross established a preliminary fund of $5,000,would necessarily be added to from seasonal causes and that the sav- 000 for distress relief purposes and established agencies for its administraings of workpeople would be more largely depleted. We have as a Nation tion in each county. Of this fund less than $500,000 has been called for
a definite duty to see that no deserving person in our country suffers up to this time as the need will appear more largely during the winter.
from hunger or cold. I therefore set up a more extensive organization The Federal Farm Loan Board has extended its credit facilities, and the
to Stimulate more intensive co-operation throughout the country. There Federal Farm Board has given financial assistance to all affected cohas been a most gratifying degree of response, from governors, mayors, operatives.
and other public officials,from welfare organizations, and from employers
In order that the Government may meet its full obligation toward
In concerns both large and small. The local communities through their our countrymen in distress through no fault of their own, I recommend
voluntary agencies have assumed the duty of relieving individual dis- that an appropriation should be made to the Department of Agriculture
tress and are being generously supported by the public.
to be loaned for the purpose of seed and feed for animals. Its application
The number of those wholly out of employment seeking for work should as hitherto in such loans be limited to a gross amount to any one
was accurately determined by the census last April as about 2,500,000. individual, and secured upon the crop.
The Department of Labor index of employment in the larger trades
The Red Cross can relieve the cases of individual distress by the
shows some decrease in employment since that time. The problem sympathetic assistance of our people.
from a relief point of view is somewhat less than the published estiFINANCES OF THE GOVERNMENT.
mates of the number of unemployed would indicate. The intensive
community and individual efforts in providing special employment
A shall submit the detailed financial position of the Government
outside the listed industries are not reflected in the statistical indexes with recommendations in the usual Budget message. I will at this
and tend to reduce such published figures. Moreover, there is esti- time, however, mention that the Budget estimates of receipts and
mated to be a constant figure at all times of nearly 1,000,000 unem- expenditures for the current year were formulated by the Treasury
ployed who are not without annual income but temporarily idle in and the Budget Bureau at a time when it was impossible to forecast
the shift from one job to another. We have an average of about three the severity of the business depression and have been most seriously
breadwinners to each two families, so that every person unemployed affected by it. At that time a surplus of about $123,000,000 was estidoes not represent a family without income. The view that the relief mated for this fiscal year and tax reduction which affected the fiscal
problems are less than the gross numbers would indicate is confirmed year to the extent of $75,000,000 was authorized by the Congress, thus
by the expetience of several cities, which shows that the number of reducing the estimated surplus to about $48,000,000. Closely revised
families in distress represents from 10 to 20% of the number of the estimates now made by the Treasury and the Bureau of the Budget
calculated unemployed. This is not said to minimize the very real of the tax, postal, and other receipts for the current fiscal year indicate
problem which exists but to weigh its actual proportions.
a decrease of about $430,000,000 from the estimate of a year ago, of
As a contribution to the situation the Federal Government is en- which about $75,000,000 is due to tax reduction, leaving about $355,program
of
waterway,
greatest
harbor,
gaged upon the
flood control, 000,000 due to the depression. Moreover, legislation enacted by Conpublic building, highway, and airway improvement in all our history. gress subsequent to the submission of the Budget enlarging Federal
This, together with loans to merchant shipbuilders, improvement construction work to expand employment and for increase in veterans'
of the Navy and in military aviation, and other construction work of services and other items, have increased expenditures during the current
the Government will exceed $520,000,000 for this fiscal year. This fiscal year by about $225,000,000.
compares with 8253,000,000 in the fiscal year 1928. The construction
Thus the decrease of $430,000,000 in revenue and the increase of
works already authorized and the continuation of policies in Govern- $225,000,000 in expenditure adversely change the original Budget
ment aid will require a continual expenditure upwards of half a billion situation by about $655,000,000. This large sum is offset by the
dollars annually.
original estimated surplus a year ago of about $123,000,000, by the
I favor still further temporary expansion of these activities in aid application of $185,000,000 of interest payments upon the foreign
to unemployment during this winter. The Congress will, however, debt to current expenditures, by arrangements of the Farm Board
have presented to it numbers of projects, some of them under the guise through repayments, &c., in consequence of which they reduced their
of, rather than the reality of, their usefulness in the increase of employ- net cash demands upon the Treasury by $100,000,000 in this period,
ment during the depression. There are certain common-sense limitations and by about $67,000,000 economies and deferments brought about in
upon any expansions of construction work. The Government must not the Government, thus reducing the practical effect of the change in
3594
FINANCIAL CHRONICLE
the situation to an estimated deficit of about $180,000,000 for the
present fiscal year. I shall make suggestions for handling the presentyear deficit in the Budget message, but I do not favor encroachment
upon the statutory reduction of the public debt.
While it will be necessary in public interest to further increase expenditures during the current fiscal year in aid to unemployment by speeding
up construction work and aid to the farmers affected by the drouth,
I can not emphasize too strongly the absolute necessity to defer any
other plans for increase of Government expenditures. The Budget
for 1932 fiscal year indicates estimated expenditure of about $4,054,000,000, including postal deficit. The receipts are estimated at about
$4,085,000,000 if the temporary tax reduction of last year be discontinued, leaving a surplus of only about $30,000,000. Most rigid economy is therefore necessary to avoid increase in taxes.
NATIONAL DEFENSE.
Our Army and Navy are being maintained at a high state of efficiency,
under officers of high training and intelligence, supported by a devoted
personnel of the rank and file. The London naval treaty has brought
important economies in the conduct of the Navy. The Navy Department will lay before the committees of the Congress recommendations
for a program of authorization of new construction winch should be
initiated in the fiscal year of 1932.
[Vol,. 131.
mend that the Congress provide methods of strengthening the Government to correct this abuse.
POST OFFICE.
Due to deferment of Government building over many years, previous
administrations had been compelled to enter upon types of leases for
secondary facilities in large cities, some of which were objectionable as
representing too high a return upon the value of the property. To
prevent the occasion for further uneconomic leasing I recommend that
the Congress authorize the building by the Government of its own
facilities.
VETERANS.
The Nation has generously expanded its care for veterans. The consolidation of all veterans' activities into the Veterans' Administration
has produced substantial administrative economies. The consolidation
also brings emphasis to the inequalities in service and allowances. The
whole subject is under study by the administrator, and I recommend
it should also be examined by the committees of the Congress.
SOCIAL SERVICE.
I urge further consideration by the Congress of the recommendations
I made a year ago looking to the development through temporary Federal
aid of adequate State and local services for the health of children and
the further stamping out of communicable disease, particularly in the
rural sections. The advance of scientific discovery, methods, and
social thought imposes a new vision in these matters. The drain upon
the Federal Treasury is comparatively small. The results both economic
and moral are of the utmost importance.
GENERAL.
It IS my belief that after the passing of this depression, when we can
examine it in retrospect, we shall need to consider a number of other
questions as to what action may be taken by the Government to remove
possible governmental influences which make for instability and to better
organize mitigation of the effect of depression. It is as yet too soon to
constructively formulate such measures.
There are many administrative subjects, such as departmental reorganization, extension of the civil service, readjustment of the postal
rates, Sze., which at some appropriate time require the attention of the
Congress.
FOREIGN RELATIONS.
Our relations with foreign countries have been maintained upon a
high basis of cordiality and good will.
During the past year the London naval pact was completed, approved
by the Senate, and ratified by the governments concerned. By this
treaty we have abolished competition in the building of warships, have
established the basis of parity of the United States with the strongest of
foreign powers, and have accomplished a substantial reduction in war
vessels.
During the year there has been an extended political unrest in the world.
Asia continues in disturbed condition, and revolutions have taken place
in Brazil, Argentina, Peru, and Bolivia. Despite the jeopardy to our
citizens and their property which naturally arises in such circumstances,
we have, with the co-operation of the governments concerned, been able
to meet all such instances without friction.
We have resumed normal relations with the new Governments of
Brazil, Argentina, Peru, and Bolivia immediately upon evidence that
they were able to give protection to our citizens and their property, and
that they recognized their international obligations.
A commission which was supported by the Congress has completed
its investigation and reported upon our future policies in respect to
Haiti and proved of high value in securing the acceptance of these
policies. An election has been held and a new government established.
We have replaced our high commissioner by a minister and have begun
the gradual withdrawal of our activities with view to complete retirement
at the expiration of the present treaty in 1935.
A number of arbitration and conciliation treaties have been completed
or negotiated during the year, and will be presented for approval by the
Senate.
shall, in a special message,lay before the Senate the protocols covering the statutes of the World Court which have been revised to accord
with the sense of previous Senate reservations.
The White House, Dec. 2 1930.
HERBERT HOOVER.
LEGISLATION.
This is the last session of the Seventy-first Congress. During its
previous sittings it has completed a very large amount of important
legislation, notably: The establishment of the Federal Farm Board;
fixing Congressional reapportionment; revision of the tariff, including
the flexible provisions and a reorganization of the Tariff Commission;
reorganization of the Radio Commission; reorganization of the Federal
Power Coinmission; expansion of Federal prisons; reorganization of
parole and probation system in Federal prisons; expansion of veterans'
hospitals; establishment of disability allowances to veterans; consolidation of veteran activities; consolidation and strengthening of prohibition
enforcement activities in the Department of Justice; organization of a
Narcotics Bureau; large expansion of rivers and harbors improvements;
substantial increase in Federal highways; enlargement of public buildings construction program; and the ratification of the London naval
treaty.
The Congress has before it legislation partially completed in the last
sitting in respect to Muscle Shoals, bus regulation, relief of congestion
in the courts, reorganization of border patrol in prevention of smuggling,
law enforcement in the District of Columbia, and other subjects.
It is desirable that these measures should be completed.
The short session does not permit of extensive legislative programs,
but there are a number of questions which, if time does not permit
action, I recommend should be placed in consideration by the Congress,
perhaps through committees co-operating in some instances with the
Federal departments, with view to preparation for subsequent action.
Among them are the following subjects:
ELECTRICAL POWER.
have in a previous message recommended effective regulation of
inter-State electrical power. Such regulation should preserve the independence and responsibility of the States.
RAILWAYS.
We have determined upon a national policy of consolidation of the
railways as a necessity of more stable and more economically operated
transportation. Further legislation is necessary to facilitate such consolidation. In the public interest we should strengthen the railways
that they may meet our future needs.
ANTI-TRUST LAWS.
I recommend that the Congress institute an inquiry into some aspects
of the economic working of these laws. I do not favor repeal of the
Sherman Act. The prevention of monopolies is of most vital public
importance. Competition is not only the basis of protection to the
consumer but is the incentive to progress. However, the interpretation
of these laws by the courts, the changes in business, especially in the
economic effects upon those enterprises closely related to the use of
the natural resources of the country, make such an inquiry advisable.
The producers of these materials assert that certain unfortunate results
of wasteful and destructive use of these natural resources together with
a deStructive competition which impoverishes both operator and worker Budget Message of President Hoover—Continued Cut
can not be remedied because of the prohibitive interpretation of the
in Income Tax Not Warranted with Estimated
anti-trust laws. The well-known condition of the bituminous coal
Deficit in Government Revenues of $180,000,000
industry is an illustration. The people have a vital interest in the
in Current Fiscal Year—Appropriations for 1932.
conservation of their natural resources; in the prevention of wasteful
practices; in conditions of destructive competition which may impoverish
In his annual budget message, sent to Congress on Dec. 3,
the producer and the wage earner; and they have an equal interest in
maintaining adequate competition. I therefore suggest that an inquiry President Hoover pointed out that "for the current fiscal
be directed especially to the effect of the workings of the anti-trust laws year 1931, there has been a material change in our financial
In these particular fields to determine if these evils can be remedied situation
as now estimated, as compared with the estimates
without sacrifice of the fundamental purpose of these laws.
presented a year ago in the 1931 budget." "At that time,"
CAPITAL-GAINS TAX.
says the President, "it was estimated that the receipts would
It is urged by many thoughtful citizens that the peculiar economic
$4,102,938,700,
effect of the income tax on so-called capital gains at the present rate total $4,225,727,666 and the expenditures
is to enhance speculative inflation and likewise impede business re- which forecasted a surplus of $122,788,966. Here again
covery. I believe this to be the case and I recommend that a study the surplus estimated did not reflect the effect of the tembe made of the economic effects of this tax and of its relation to the
porary tax reduction recommended in that budget which
general structure of our income tax law.
it
was anticipated would cause a reduction of over $75,IMMIGRATION.
000,000 in the receipts for the fiscal year 1931. Therefore,
There is need for revision of our immigration laws upon a more limited
with this adjustment the surplus estimated at this time
and more selective basis, flexible to the needs of the country.
Under conditions of current unemployment it is obvious that per- last year would have been about $45,000,000." The
sons coming to the United States seeking work would likly become
either a direct or indirect public charge. As a temporary measure President went on to say:
Due to the depression, it is now estimated that the income of the Govthe officers issuing visas to immigrants have been in pursuance of,
the law, instructed to refuse visas to applicants likely to fall into this ernment in taxes and in postal receipts for the current fiscal year will
probably
fall below the anticipation by over $430.000,000. Moreover,
class. As a result the visas issued have decreased from an average of
about 24,000 per month prior to restrictions to a rate of about 7,000 the measures taken to increase employment by the expansion of conduring the last month. These are largely preferred persons under the struction activities in the Government under the authorization of Congress,
law. Visas from Mexico are about 250 per month compared to about together with other items of increase. Including the increase in veterans'
4,000 previous to restrictions. The whole subject requires exhaustive services enacted by Congress, represent a very material increase in Government expenditures of over $225,000.000.
reconsideration.
This would indicate a change in the situation from the estimates of the
DEPORTATION OF ALIEN CRIMINALS.
last budget of nearly $655,000,000. This large sum, however, is partially
urge the strengthening of our deportation laws so as to more fully met by the application of $185,000.000 of interest payments on the foreign
rid ourselves of criminal aliens. Furthermore, thousands of persons debt to current expenditures and by arrangements of the Federal Farmhave entered the country in violation of the immigration laws. The Bcvdd by which they reduced their net cash demands upon the Treasury
very method of their entry indicates their objectionable character, and by $100,000,000 during this period. These sums, together with economies
our law-abiding foreign-born residents suffer in consequence. I recom- brought about in the Government,reduce the practical effect of the change
DEc. 61930.]
3595
FINANCIAL CHRONICLE
in the financial situation to a present estimated deficit of approximately
8180.000,000 for the current fiscal year.
Independent establishments—(Concluded)—
United States Shipping Board and Merchant
Fleet Corporation
Veterans' Administration
Yorktown Sesquicentennial Commission_
xA paroariananz:
1931.
Estimates,
N 1932.
00
6,346,000.00
39,406,000
946,289,758.00 y836,244.020.00
The President stated that he does not "look with favor
8,000.00
the
of
reduction
by
deficit
this
meet
to
on any attempts
independent
and
Office
Total, Executive
statutory redemption of the public debt, which now amounts
$1,148,354.811.00 $895.321.171.00
establishments
to about $440,000,000 per annum. Nor," he continued,
$225,537,476.00 $173,145,474.50
of Agriculture
54.619.485.00
54,638,226.00
"do I look with great concern upon this moderate deficit Department
Department of Commerce
83,875,323.74
85,345,211.73
Interior
the
of
for the current fiscal year, which, in fact, amounts to less Department
z45,395,922.00
51.988,261.00
Department of Justice
12.230,170.00
13,446,400.00
The
e.
t
expenditur
Labor
Governmen
of
total
the
of
Department
5%
than
382,505.193.26
349,628,298.00
Navy Department
adverse balance can be met by reducing the general fund Postoffice Department:
725,844,097.00
Service payable from postal revenues_ 735,003,057.00
111.202,200.00
balance from the amount in it at the beginning of the year, Postal
114,041,000.00
Postal deficiency payable from Treasury..._
17,816,022.14
17,731.306.34
by
Department
borrowing
by
temporary
State
necessary,
if
ed,
supplement
359,638,676.00
281,296.380.00
Treasury Department
456.041,951.00
464.645.806.00
probably
War Department, including Panama Canal...
the Treasury." The President stated that "it will
48,397,432.00
47,796,047.00
Columbia
be necessary for Congress to appropriate additional money District of
Service_ _23,618,335,563.07 $3.393,344,355.22
Postal
including
ordinary,
Total,
to
in
order
year
present
fiscal
the
for expenditure within
increase employment and to provide for the drouth situation" Reduction In principal of the public debt:
8409,410,600.00 $392.152.200.00
Sinking fund
48,846.000.00
59,099,305.00
and he noted that be had presented this matter in his annual
Other redemptions of the debt
8468,509.905.00 8440.998.200.00
message, which we give elsewhere. "While this," said the
Principal of the public debt
603,000,000.00
581,000,000.00
President, "will operate to increase the amount of the Interest on the public debt
be
Department
can
flee
increase
such
I
Postof
believe
estimated,
including
above
Total.
deficit as
24,667,845.468.07 $4,437,342,585.22
and Postal Service
accommodated by the methods indicated. On the other Deduct Postal Service payable from postal revs. 735,003,057.00 725,844,097.00
hand, no appropriations should be made for such purposes
$3,932,842,411.07 $3,711,498,488.22
Total payable from the Treasury
amending the
which look beyond such action as will ameliorate the immex Exclusive of the annual cost of the act approved July 3 1930.
classification act of 1923, estimated at $3,975,292.
the act of July 3
under
transferred
appropriations
diate situation during the next six months."
the
include
1931
for
y Figures
Department (National
1930, from the Interior Department (pensions) and the War
Referring to the reduction in the income tax granted by Homes
for Disabled Volunteer Soldiers).
the acts of May 27
under
transferred
appropriations
Presiinclude
z Figures for 1931
Congress on incomes for the calendar year 1929, the
(Prohibition Bureau and
1930. and June 17 1930, from the Treasury Department
Court).
dent said: "I wish that it were possible to continue this the
Customs
States
United
from the Treasury
reduction for the taxes upon incomes of the calendar year
The total of the estimates of appropriations payable
$221,000,000 more than the appropriations
1930. I regret that the present outlook for heavy decrease shown in the foregoing table is1932,
however, connin 8100.000.000 for the
for 1931. The estimates for
no amount
in probable income and the necessity to increase public revolving
loan fund of the Federal Farm Board for watch
the
works and aid to employment does not warrant the con- appears in the 1931 apprcpriations. Of other large items of in,:rea_se
the Shipping Board
Veterans' Administration calls for $110,000,000,
tinuation of the reduction at the present time."
are
the road provam 851.500.000. while tax repayments
For the fiscal year 1931 total receipts are estimated at 635.000,000,
estimated at $92.000.000 loss.
1932 with the approFor the purposes of comparing the estimates for
$3,834,865,243 and expenditures $4,014,941,900, leaving a
increase or decrease
priations for 1931, the hrge Items which involve either
deficit of $180,076,657. The appropriation estimated for are
set forth below:
Decrease.
for
Increase.
,488
with
$3,711,498
comparing
1932 is $3,932,842,411,
establishment:
22.300,000
1931—this repreminting an increase of $221,343,923 in 1932 Legislative
House Office Building
2,868,000
Senate Office Building
over 1931.
1,000,000
Library of Congress Annex
$4.763,000
said:
President
the
Enlarging Capitol grounds
In concluding his message,
1,500,000
I realize that, naturally, there will be before the Congress this session
many legislative matters involving additions to our estimated expenditures
for 1932, and the plea of unemployment will be advanced as reasons for
many new ventures, but no reasonable view of the outlook warrants such
pleas as apply to expenditures in the 1932 budget. I have full faith that
in acting upon these matters the Congress will give due consideration to
our financial outlook. I am satisfied that in the absence of further legislation imposing any considerable burden upon our 1932 finances we can
close that year with a balanced budget.
When we stop to consider that we are progressively amortizing our
public debt, and that a balanced budget is being presented for 1932, even
after drastic writing down of expected revenue. I believe it will be agreed
that our Government finances are in a sound condition.
The following is the message in full:
To the Congress of the United States:
budget of the United States
I have the honor to transmit herewith the
tor the fiscal year ending June 30 1932. A comparison between the estis for 1931 is set
appropriation
the
and
'Mates of appropriations for 1932
forth in the following table:
Estimates,
:Appropriation/.
1932.
1931.
Legislative establishment:
$3,252.522.00
$3,244.744.00
Senate
8,182,298.00
8,176,754.00
House of Representatives
10,336,609.00
8,472.417.58
Architect of the Capitol
175,082.00
194,560.00
Botanic Garden
2,457,722.00
3,767,742.00
Library of Congress
4,294,000.00
3,270,000.00
Office
Printing
Government
185,050.00
185.050.00
Miscellaneous
228,883.283.00
$27,311,267.58
establishment
Total, legislative
$473,400.00
Executive Office
Independent establishments:
15,000.00
funds
relief
Alaska
304,250.00
American Battle Monuments Commission
1,000,000.00
Arlington Memorial Bridge Commission _...
318,545.00
Board of Mediation
654,460.00
Board of Tax Appeals
201,470.00
Efficiency
of
Bureau
1,678.442.00
Civil Service Commission
9,995.00
Commission of Fine Arts
4336,380.00
Employes' Compensation Commission
10.087,260.00
Education-Federal Board for Vocational
101,900.000.00
Federal Farm Board
20,000.00
Federal 011 Conservation Board
319,270.00
Federal Power Commission
466,820.00
Federal Radio Commission
1,609,200.00
Federal Reserve Board
1,625.986.00
Federal Trade Commission
4,363.320.00
Office
Accounting
General
800,000.00
Comm
l
George Rogers Clark Sesquicentennia
338,195.00
.George Washington Bicentennial Comm—.
33.700.00
Housing Corporation
Individual records, civil service retirements..
11,975,593.00
InterstateCommerce Commission
Investigation of enforcement of prohibition
and other laws
Mount Rushmore National Memorial Comm.
1,053,790.00
National Advisory Comm.for Aeronautics
4,000,000.00
National Capital Par and kr fuming Comm
220,830 00
Board
Classification
Personnel
2,000,000.00
Porto Rican Hurricane Relief Commiasion
Protecting interests of the United States in
20,000.00
Oil leases and oil lands
Public Buildings and Public Parks of the
5,595,685.00
Capital
National
125,000.00
Public Buildings Commission
1,212,924.00
'Smithsonian Institution
4,250,000.00
Commission
Building
Supreme Court
1,240,000.00
Tariff Commission
9,538.00
United States Geographic Board
$422,320.00
15,000.00
1,000,000.00
1,000,000.00
328.380.00
650,000.00
224.330.00
1,642,952.00
9,080.00
4,210.000.00
9,400.400.00
1,900,000.00
17,220.00
299,170.00
450,000.00
2,560,336.00
1,580,000.00
4393,500.00
362,075.00
48,950.00
150,000.00
10,329,963.00
250.000.00
60,000.00
1,321,000.00
1,000,000.00
2,000,000.00
4,289,044.00
100,000.00
1.208,671.00
1,000,000.00
785,000.00
15,760.00
Library of Congres, Vollbehr Collection
1,000.000
Government Printing Office Building
Independent establishments:
100,000,000
Federal Farm Board
800,000
George Rogers Clark Sesquicentennial Commission... 3,000,000
National Capital Park and Planning Commission—
National
the
of
Parks
Public
and
Buildings
Public
1,300.000
Capital
United States Shipping Board and Merchant Fleet
Corporation—
Shipping fund
35,000,000
Construction loan fund
2,750,000
United States Supreme Court Building
Veterans' Administration—
General administration and hospitalization
Military and naval compensation
Military and naval insurance
Government life insurance
Army and navy pensions
Hospital and domiciliary construction
Total Veterans' Administration
3,300,000
$17,090,000
71,290,000
1,500,000
890,000
9.500,000
9,350,000
2109,620,000
Department of Agriculture:
$1,450,000
Forest Service
81,730,000
Plant quarantine and control
1,500,000
Forest roads
50,000,000
Federal-aid roads
2,000,000
Mount Vernon Highway
1,300,000
Flood relief roads
Department of Commerce:
1,160,000
Aeronautics Branch
2,230,000
Bureau of the Census
870,000
Bureau of Standards
Department of the Interior:
1,390,000
Indian Service
5,000.000
Indian trust funds
4,420,000
Bureau of Reclamation
1,820,000
National parks, land purchases
1,150,000
St. Elizabeth's Hospital, construction
Justice:
of
Department
2,480,000
Bureau of Prohibition
1,570,000
Expenses, &c., United States courts
2,010,000
institutions
Penal and correctional
1,190.000
Department of Labor
Navy Department:
1,100,000
Bureau of Engineering
1,940,000
Bureau of Supplies and Accounts
1,180,000
Bureau of Aeronautics
7,400,000
Major alterations of vessels
21,100,000
Increase of the navy
2,830,000
Postal Service—Deficiency
Treasury Department:
92,000,000
collected
Refunding taxes illegally
10,330,000
Construction of public buildings
1,000,000
Customs Service
War Department:
1,410,000
Buildings at military posts
1,230,000
Other Quartermaster Corps items
1,630,000
Air Corns
Maintenance and improvement of rivers and harbors— 5,000,000
Annual appropriation
4,580,000
Permanent specific and indefinite appropriations_
District of Columbia:
3,060,000
Municipal Centre
2,465,000
Net increase other items
Public debt:
27,500,000
Reduction of principal
22,000,000
Interest
There are certain items whim n affect these increases and decreases which
1 feel require special comment.
Shipping Board.
The estimates for the Sllpping Board contained in this budget show a
net increase of about 833.000,000 over the appropriation for 1931. This
increase is due to the estimate of 835.000,000 for the construction-loan
3596
FINANCIAL CHRONICLE
[VOL. 131.
fund of the Shipping Board, which is a new item of appropriation. Heretcfore all authorized loans for the construction of ships by private parties appropriations have been made to the amount of $149,586,000. The total
expenditures to Oct. 311930. amount to $77,027,625.
80 of which $8,481,have been met by the receipts credited to the construction-loan fund of the
550.29 is chargeable to authorizations prior to 1926,
Shipping Board arising from sales of ships or property and other sources.
let ving a balance
available for further expenditure of $72,558,379.
09. The amount which
There will be required, however, a direct appropriation to the credit of
will be expended during the remaining eight
months of the current fiscal
this fund to provide for authori7ed loans during the fiscal year 1932. Deyear is estimated at S56,000,000 The appropriatio
n balance then remaincreases in the 1932 estimates of the Shipping Board for other purposes
ing, added to the $60,000.000 carried in
this budget, will permit of examount to approximately $2.000.000.so that the net increase is $33.000,000.
penditures somewhat in excess of $76.500.000 during
the firse 1 year 1932.
The expenditure progrrm for the 20-month period
Veferals' Administration.
from Nov. 1 1930, tti
Under the authority contained in the Act of Congress entitled "An Act June 30 1932, therefore amounts to upward of $132,500,000. and It is fully
to authorize the President to consolidate and co ordinate governmental expected that this program will be carried out.
In addition to the building program as above outlined, appropriatio
activities affecting war veterans," approved July 3 1930, there have been
ns
transferred to and consolidated in the Veterans' Administration the duties, amounting to $23.680.000 have also been made under the authorization of
powers and functions which devolve by law upon the Bureau of Pensions $40,000.000 for the purchase of addilonal land in the District of Columbia.
of the Interior Department, the National Home for Disabled Volunteer The expenditures to Oct. 31 1930, amount to $13,234.030.45, and approximately $7,600.000 will be spent during the remainder
Soldiers and the United States Veterans' Bureau.
of the current
The activities of the War Department dealing with the payment of the fiscal year. The expenditures during the fiscal year 1932 are estimated at
annuities prescribed in the Acts of Congress approved May 23 1908, and upward of $7,500,000, and for this purpose provision for an additional
Feb. 28 1929, and the furnishing of artificial limbs, trusses and surgical appropriation of $5.000.000 is carried in this budget.
The War Department is also carrying forward
appliances under the laws recited in Chapter 5, Title 38, United States Code,
a builidng program.
Involving an ultimate expenditure of about $160,000.000
have also been transferred to the Veterans' Administration.
. for the housing
For the first time there is presented in the estimates of one establishment of military personnel and utilities, made necessary by the need for replacing
the funds necessary to carry on the activities of the government which World War temporary construction and to provide generally for the increase
deal directly with the administration of veterans' affairs. The total of the in the pre-war strength of the regular army. There has already been
estimate is $946,289,000, but not all of this pertains to veterans' affairs. appropriated for this purpose $53,348,000. and $14,700,000 is carried in the
Approximately $21,000,000, which pertains generally to the civil service estimates for 1932, with authority to make contracts for $3,000,000 addiretirement fund and the administratiena of the retirement law, has no tional. The estimates for 1932 also carry $2.625,000 for technical buildings
application to veterans as such. This function was transferred to the for the Air Service of the army and $1,530,000 for other buildings for various
purposes for the army and the Panama Canal.
veterans' administration because it formed a part of the duties of
the
For buildings and structures for the navy the budget carries
Bureau of Pensions which was merged intact into the new establishment.
estimates
The estimate for the veterans' administration contained in this budget aggregating $9,542,500, of which $50,000 is for the purchase of necessary
land.
is approximately $110,000.000 in excess
of the appropriations for similar
To complete the $15,000,000 program for additional hospital facilities
purposes for 1931. The-principal items of increase are in general adminisfor
tration and hospitalization, $17,428,000, which Is due principally to en- the veterans' administration $7,950,000 is provided in this budget for
liquidating contracts previously authorized by the Congress
larged operating costs occasioned by the increase in the number and
and
$3,400,capacity
of hospitals and domiciliary facilities; military and naval compensation, 000 is provided for construction work at branches of the National Home
$71.300.000; construction of new hospitals and domiciliary facilities, for Disabled Volunteer Soldiers.
A total of $2,550,000 IS estimated for new building construction
$9,350,000, and Civil War and Spanish-American War pensions,$9,500,000.
for the
I feel confident that in the absence of the consolidation of veterans' Indian Service, including reservation and non-reservation schools, hospitals
and
administration buildings.
affairs made possible by the Act of Congress approved July
3 1930, we
The estimates for the Department of Justice include provision for
would have required a larger appropriation for 1932 to serve the same
construction at the Atlanta (Ga.) Penitentiary. $100,000; at
purposes as are contemplated by the estimate contained in this budget.
the McNeil
Island (Wash.) Penitentiary, $214,000; at the industrial
Agriculture.
Chillicothe, Ohio, $1,000,000, for a new reformatory west ofreformatory.
the MissisThe estimates for the Department of Agriculture for 1932 carry apsippi River, the location of which has not yet been decided upon.
$500,000;
proximately $56,740,000 in excess of the appropriations for the current for
Federal jails, $500,000; and at the National Training School for Boys,
fiscal year 1931. The major pertion of this increase, $51,500,000, is for the
Washington,
D.
$200,000;
C.,
a
total
of
$2,514,000.
construction of roads in the Federal highway system and for forest roads
For the Department of State $2,000,000 is provided to continue the
and trails. Other increases are for agricultural research
work, $2,000.000: program for the construction of houses and offices for our representati
ves
for service work for the general public, including the Weather
Bureau abroad.
service. $2,440,000. and for enforcement of regulatory
laws, $800,000.
Altogether this budget carries $111,811,500 for the procurement of sites
Treasury Department.
and the construction of buildings, with a contract authorization for a
In the estimates of the Treasury Department for
the fiscal year 1932 the further expenditure of $3,000,000.
principal item of decreases from the appropriations
for the fiscal year 1931
National Defense.
is $92,000,000 for refunding taxes illegally
collected. On the other hand
The estimates of appropriations for the War and Navy Departments for
the principal items of increase over 1931 are $10.300,000
pertaining to the 1932 provide a total of $689,084,000 for national
defense. This is exclusive
construction of public buildings and $1,000,000 for the
Customs Service. of all items of a non-military character and
is a decrease under the appropriaIn total, the estimates for the Treasury Department
for 1932. compared tions for this purpose for 1931
of $33,697,000.
with the appropriations for 1931, show a decrease of
$78,342,000. This,
The decrease for the War Department amounts to $751,000, which
however, is only an apparent reduction in so far as amounts
available for amount is the net result of increases and decreases
in many items based on
expenditure within the respective fiscal years are concerned.
the different requirements for the two fiscal years involved.
The appropriations for the Treasury Department include
a number of
The decrease for the Navy Department is $32,946,000. Due to the ratifidouble-year and no-year items. It is estimated that the result of
operations cation of the London treaty, the operating force program of the
navy was
under these appropriations will be a reduction in expenditures
in 1931 of revised to provide for a reduction in the enlisted force and reduction
a
in
$30,000,000. and an increase in the amount available in 1932 of$59,400,000. the number
of vessels to be retained in commissloo. These changes involved
On this basis the amount available in 1932 will be over $11,000,000 in a reduction
in the estimated requirements for 1932 of approximately
excess of 1931.
$7,000,000.
District of Columbia.
However, with a fleet much reduced in number of vessels, provision is
For the municipal government of the District of Columbia there is being made for 1932 for a reasonable
increase in the enlisted complement of
requested $47,796,000, which is a decrease of $601,000 from the appro- vessels and for relative increases in
the items connected with the maintenpriations for 1931. However, the 1931 appropriations provided $3,000,000 ance,repair and operation of vessels,
with the view that the efficiency of the
for the purchase ofland and $65,000 for the preparation of plans and designs Personnel and of the vessels of the
smaller active fleet may be further
of buildings for the municipal centre, which are non-recurring items. increased. After providing for these
and other increases, the net decrease
Deducting these amounts, the estimate for 1932 is $2.465,000 in excess
for
ordinary operating expenses Is $4,446,000. The decrease for modernizaof
the appropriation for 1931.
tion of battleships Ls $7,400,000, appropriations having previously
been
I may add that the estimate for 1932 does not contain any amount for made to complete the modernizatio
n of all vessels so far authorized. For
commencing actual construction for the municipal centre for the reason construction of vessels
the decrease is $21,100,000. A large unexpended
that the preparation of plans, designs and estimates of cost have
not balance accrued under the appropriation for ship construction because of
progressed to a point which permits of a limit of total
cost being expressed the delay in the program pending the result of negotiations for modificaIn the estimate.
tion of the Washington treaty.
The commissioners of the District of Columbia believe that approxiThe construction of those vessels now authorized, which are permitted
mately $1.500,000 will be required to commence construction work and by the London treaty,
should now go forward without delay. The cash
they are reserving that amount from the estimated revenues of the District withdrawals
for new ship construction during 1932 is estimated at $51,of Columbia. In considering the amount available for appropriatio for the 600.000 and
n
for 1931 at $44,200,000. Seven of the light cruisers carrying
District of Columbia this amount has been withheld from the estimates 8-inch guns and
the aircraft carrier authorized by the act approved Feb. 13
of 1932 solely with a view to later pres,mtation when more complete
in- 1929. will be under construction by the close of the current fiscal year.
formation is available. I mention this so as to prevent any possible misUnder the terms of the London treaty, and if this Government so elects,
understanding that the omission of the amount of $1,500,000
from this three more 8-inch gun cruisers may be laid down; one in the calendar year
budget would leave excess funds of the District of Columbia available for 1933, one in
1934, and one in 1935. The remaining five cruisers authorized
appropriation for other purposes.
by the act may not, under the terms of the treaty, be constructed
with
armament
Buildings.
of 8-inch guns.
The estimates for 1932 provide additional funds necessary to carry
The progress made by the Treasury Department under the program to
house Federal activities in Washington and throughout the country in forward work on the aircraft carrier and seven of the cruisers authorized
government-owned buildings has been greatly accelerated during the past by the act of Feb. 13 1929, and also the lncompleted light cruisers and
year by a considerable enlargement of the program, expedition in acquiring submarines being constructed under prior authorization.
sites, and the removal of restrictions on the employment of outside archiAir Service.
tectural services. The original public building Act of May
25 1926, auThere is requested for the Air Services of the army and navy, including
thorized the expenditure of $15.000,000, in addition to MIMS already
their civilian components,a total of $29,361,000 for the procurement of new
provided, for the completion of 69 projects autnorized prior to 1926.
It airplanes, their engines,spare parts and accessories. I am also asking a
total
also authorized the expenditure of $50,000,000 for buildings in the District of
$227,000 for similar purposes for the Coast Guard, Department of Comof Columbia, and $100,000,000 for the country at large.
merce, and the National Advisory Conunittee for Aeronautics.
These
An Act approved Feb. 24 1928, amended the origins. Act by increasing
two sums contemplate the procurement of a total of not less than 787
the authorization for buildings outside the District of Columbia $100,000,030. A recent Act, approved March 31 1930, further amended the two airplanes.
With regard to the army the estimates make provision for the proprior Acts by increasing the District of Columbia program for construction
curement of at least 392 planes, which will provide an approximate total
of
$100,000.000. and the program outside the district $115,000,000. The
1,582 planes on hand and on order on June 30 1932, leaving a
purchase of additional land in the District
possible
of Columbia at an aggregate shortage of 66 planes in the authorized
total of 1,648. This is only an esticost of $40.000,000 has also been authorized. The t,ctal public buildings
mated shortage and may be substantially reduced by June 30 1932.
program, therefore, under present authorizations, amounts
The
to $520,000,- National Guard now has its full complement
of 152 planes.
000. to which should be added whatever amounts are derived from the sale
Concerning
naval
aviation
the
expansion
authorized
program
by
Congress
of obsolete sites and buildings.
provided for '1,000 planes and two rigid airships. The airplane
program
In furtherance of the purposes of this legislation specific authorizations will
be completed during the current fiscal year, so that provision Is
have bees made for 535 projects at limits of cost aggregating $378,560,000
made
. in this budget only for the procurement of replacement planes
to the
To finance the projects, on the basis of providing for maturing obligations,
number of 277. The two rigid airships are now under contract and
there is
DEC. 6 1930.]
included in this budget $1.675,000 for the completion of one and commencing the construction of the other.
In addition to the amounts which we are spending for the acquisition of
aircraft we are also spending large sums for lighting and equipping airways,
for the inspection and licensing of commercial planes and pilots, and
furnishing weather reports necessary to the carrying on of aerial navigation.
For these purposes $10,375,000 is included in the estimates of the Department of Commerce and $1,760,000 in the estimates of the Weather Bureau
of the Department of Agriculture. It is estimated that by the end of the
fiscal year 1932 there will be about 19,500 miles of airways lighted and
equipped.
Rivers and Harbors and Flood Control.
The estimates herewith contain an increase of $5,000,000 for the maintenance and improvement of existing river and harbor works over the annual
appropriation for the current fiscal year. In addition to this increase the
estimates for 1932 show a further increase of $4,680,000 over the estimates
for 1931 in the funds required to meet the requirements of rivers and
harbors and flood control under authorizations of law covering permanent
specific and indefinite appropriations, advances and contributions. The
total contained in this budget for rivers and harbors and flood control is
$108,553,000, of which $71,703,000 is for rivers and harbors and $36.850,000 for flood control.
Panama Canal.
The annual amounts now being appropriated for the Panama Canal are
approximately $12,000,000. and the receipts from the canal flowing to the
Federal Treasury are approximately $28,000,000, an excess of receipts over
appropriations of $16.000,000 annually. There seems to be a feeling in some
quarters that under these circumstances either the tolls of the Panama
Canal should now be materially reduced or the expenditures on the canal
increased, or both.
However,from 1903 to 1930 the total expenditures for the canal in excess
of the receipts for the same period, with interest on the net outlay computed
at 3% annually, produce a total capital liability at the close of the last
fiscal year of about $535,000,000. The annual interest on this sum at 3%
is $16,050,000.
It is evident, therefore, as the tolls are now meeting only operating exexpenses and interest on the investment, with no return of capital, any
change in policy does not seem to be justified at the present time.
Unexpended Balances.
In the preparation of the estimates of appropriations contained in this
budget I have refrained (with the exception of one class of cases) from
continuing the practice of recommending that the requirements for 1932
be met in part by a reappropriation, or extension of the availability, of
unexpended balances of appropriations for the current or prior fiscal years.
This practice effected an apparent reduction in the amount of an estimate of appropriation but it did not affect in any way the amount of money
to be withdrawn from the Treasury, and was, to that extent, misleading.
As no saving resulted from such a practice I felt that its discontinuance in
framing the estimates for 1932 would result in having these estimates
represent the true amount required, and thus give a clearer and more
accurate picture of actual requirements.
The only cases in which the practice has been continued are those in
which moneys appropriated for a specific non-recurring project remain
unexpended and it is necessary to continue the availability of the funds
for the same purpose or purposes for which originally appropriated.
Pay of Federal Employees.
Under the classification act of 1923, as amended, and the application of
that act to the field services by adjusting their rates of pay to correspond
with those defined for the departmental service in the District of Columbia,
there has developed through the years rather a wide difference among the
several departments and establishments as to the relationship which the
average of the existing salaries bears to the average of the compensation
rates provided by law for the various grades of positions. In some instances
the payrolls shows that the average has been approximately attained; in
others that the grades are at least one step below the average and in many
eases two or more steps below the average.
With a view to commencing the adjustment of this situation the estimates contained in this budget carry for promotion purposes for each
activity approximately 30% of the amount required to bring all underaverage grades up to the average. This will materially lessen the difference which now obtains between the many payrolls and if the same principle
is followed for the next two or three years will eliminate such difference.
It is estimated that it will require approximately $14,400,000 to bring all
under-average grades up to the average and the estimates contained in this
budget provide for approximately 30% of this amount.
While the percentage has been arbitrarily chosen and might be modified
Without affecting the purpose of eliminating discrepances between and
within the departments and establishments, I believe any deviation from
the general principle stated or any application of it to one department and
not to another will defeat the purpose of providing "equal compensation for
equal work," which was the expressed intent of Congress in enacting the
Classification Act of 1923.
Receipts and Expenditures for 1932.
In preparing the detailed statements of receipts and expenditures contained in this budget I have segregated trust funds from general funds
and special funds. This has been done for the reason that trust funds do
not belong to the Federal Government but to the beneficiaries of the trusts;
and, in summarizing the financial condition of the Government, trust
funds should therefore be excluded.
For the purpose of comparison with the estimates contained in the budget
for the fiscal year 1931, submitted last December, trust funds are included
in the following summary of receipts and expenditures;
SUMMARY OF RECEIPTS AND EXPENDITURES.
[Exclusive of postal revenues and postal expenditures paid from postal revenues.)
1931.
1932.
1930.
Total general fund receipts_53,852,401,738.00 $3,611,634,871.00 $3,840,921,014.26
94,143,572.00
Total special fund receipts__ 103,317,543.00
207,639,566.98
$3,955,719,281.00 $3,705,778,443.00 $4,048,560.581.24
353,846,208.00
Gross trust fund receipts__ - 361,034,371.00
351,410,919.66
$4,316,753,652.00 $4,059,624,651.00 $4,399,971,500.00
genDeduct transfers from
231,633,725.00
224,759,408.00
eral to trust funds
222,029,798.91
$44,085,119,927.00 $3,834,865,243.00 $4
4,177,941,701.99
Total net receipts
Total general fund ex penses _ 53,792,382,700.00 $3,761,149,100.00 $3,641,944,363.81
123,625,000.00
Total special fund expenses_ 132,651,300.00
220,135,655.99
33,925,034,000.00 $3,884,774,100.00 $3,862,080,019.80
361,118,925.00
354,927,208.00
Total trust fund expenses
354,102,266.20
$4,286,152,925.00 $44,239,701,308.00 $4
4,216,182,286.00
Deduct transfers from gen231,633,725.00
224,759,408.00
eral to trust funds
222,029.798.91
Total net expenditures...84,054,519,200.00 $4,014,941,900.00 $3,994,152,487.09
$330,600,727.00
Excess of receipts
$183,789,214.30
Excess of expenditures_
$180,076,657.00
3597
FINANCIAL CHRONICLE
Since the budget for 1931 was compiled before the segregation of funds
was effected the estimates contained in that budget do not show this segregation. In analyzing the differences between the present situation and
that indicated in the budget for 1931 it is therefore necessary to deal with
totals including trust funds, although in the future it is contemplated to
consider in such comparisons only general and special funds which represent
true Government transactions.
19301931
Estimated in the
Estimated in Estimated in the
Actual.
1931 Budget.
This Budget.
1931 Budget.
Receipts_ _ _ _3,834,865,243.00 4,225,727,666.00 4,177,941,701.99 4,249,263,434.00
Expenditures 4,014,941,900.00 4,102,938,700.00 3,994,152,487.09 4,023,681,900.00
SurplusDeficit_
122,788,966.00
183,789,214.90
225,581,534.00
180,076,657.00
1930.
The fiscal year 1930 closed with an actualsurplus ofreceipts over expenditures of $183,789,214.90, as against an estimated surplus as contained in
the budget for 1931 of $225,581,534. The latter figure, however, did not
reflect the effect of the temporary reduction in income taxes recommended
in that budget and which it was estimated would exceed $80,000,000 during
the fiscal year 1930. As a matter of fact, the actual receipts during the
fiscal year 1930 were about $71,000,000 less than the estimate contained in
the 1931 budget. This was partially offset by a net reduction in expenditures of $29.500,000 below those estimated in the 1931 budget. This net
reduction consisted of various increases and decreases, including about
$74.000,000 decrease in the reduction of the public debt on account of
certain foreign interest payments being made in cash instead of in securities
as had been anticipated.
1931.
For the current fiscal year, 1931, there has been a material change in our
financial situation as now estimated compared with the estimates presented
a year ago in the 1931 budget. At that time it was estimated that the
receipts would total $4,225,727,666 and the expenditures $4,102,938,700,
which forecast a surplus of $122,788,966. Here again the surplus estimated
did not reflect the effect of the temporary tax reduction recommended in
that budget which it was anticipated would cause a reduction of over $75.000,000 in the receipts for the fiscal year 1931. Therefore, with this adjustment the surplus estimated Et this time last year would have been about
$45,000,000.
Due to the depression it is now estimated that the income of the government in taxes and in postal receipts for the current fiscal year will probably
fall below the anticipation by over $430,000.000. Moreover, the measures
taken to increase employment by the expansion of construction activities
In the government under the authorization of Congress, together with other
Items of increase, including the increase in veterans' services enacted by
Congress, represent a very material increase in government expenditures
of over $225,000,000.
This would indicate a change in the situation from the estimates of the
last budget of nearly $655,000,000. This large sum, however, is partially
met by the application of $185,000.000 of interest payments on the foreign
debt to current expenditures and by arrangements of the Federal Farm
Board by which they reduced their net cash demands upon the Treasury
by $100,000,000 during this period. These sums, together with economies
brought about in the government,reduce the practical effect of the change
in the financial situation to a present estimated deficit of approximately
$180,000,000 for the current fiscal year.
This development, of course, is primarily due to the depressed condition
not only in this country but in the whole world, accentuated by the drouth,
and, on the other hand, to the necessary measures of the government to
increase employment and the increases of allowances to various services to
veterans.
I do not look with favor on any attempts to meet this deficit by reduction
of the statutory redemption of the public debt, which now amounts to
about $440,000,000 per annum. Nor do I look with great concern upon
this moderate deficit for the current fiscal year, which, in fact, amounts to
less than 5% of the total government expenditure. The adverse balance
can be met by reducing the general fund balance from the amount in it at
the beginning of the year,supplemented,if necessary, by temporary borrow
lug by the Treasury.
When we recollect that our budget has yielded large surpluses for the last
11 years, which have enabled us to retire the public debt, in addition to
retirements required by law, to the extent of nearly $3.500,000,000. we can
confidently look forward to the restoration ofsuch surpluses with the general
recovery of the economic situation, and thus the absorption of any temporary borrowing that may be necessary.
It will probably be necessary for Congress to appropriate additional
money for expenditure within the present fiscal year in order to increase
employment and to provide for the drouth situation. I have presented this
matter in my annual message on the State of the Union. While this will
operate to increase the amount of the deficit as above estimated, I believe
such increase can be accommodated by the methods indicated. On the
other hand, no appropriations should be made for such purposes which
look beyond such action as will ameliorate the immediate situation during
the next six months.
Taxes.
The estimate of receipts for 1932 is predicated on the existing income tax
law. The Congress granted a substantialreduction in tax rates upon income
of the calendar year 1929. I wish that it were possible to continue this
reduction for the taxes upon incomes of the calendar year 1930. I regret
that the present outlook for heavy decrease in probable income and the
necessity to increase public works and aid to employment does not warrant
the continuation of the reduction at the present time.
The difference in revenue between the tax rates upon incomes authorized
for the calender year 1929 by the joint resolution approved Dec. 16 1929.
and the rates specified in the revenue act of 1928 is approximately $160,000,000. If our expected revenues for 1932 were reduced by this amount a
deficit for 1932 as well as 1931 would now appear to be inevitable.
I am confident that the sentiment of the people is in favor of a balanced
budget. I am equally confident that the influence on business of having
the financial affairs of the Federal Government on a sound basis is of the
utmost importance.
Conclusion.
For the fiscal year 1932 the favorable margin between our estimated
receipts and estimated expenditures is small. It will not take much to
exhaust the expected surplus. In fact, it is inevitable th- t some portion,
and perhaps a considerable portion, of it will ho required to meet the settlement of judgments and claims and the cost of other contingencies or
emergencies which cannot now be foreseen. On the receipt side credit has
been taken for all revenue that can reasonably be anticipated. In the
expenditure statement there have been covered the amounts which reasonably can be estimated as necessary to meet the obligations of the government under present law.
3598
FINANCIAL CHRONICLE
This Is not a time when we can afford to embark upon any new or enlarged
ventures of government. It will tax our every resource to expand in
directions providing employment during the next few months upon already
authorized projects.
I realize that, naturally, there will be before the Congress this session
many legislative matters involving additions to our estimated expenditures
for 1932, and the plea of unemployment will be advanced as reasons for
many new ventures, but no reasonable view of the outlook warrants such
pleas as apply to expenditures in the 1932 budget.
I have full faith that in acting upon these matters the Congress will give
due consideration to our financial outlook. I am satisfied that in the
absence of further legislation imposing any considerable burden upon our
1932 finances we can close that ye .r with a balanced budget.
When we stop to consider that we are progressively amortizing our public
debt, and that a balanced budget is being presented for 1932, even after
drastic writing down of expected revenue, I believe it will be agreed that our
Government finances are in a sound condition.
Dec. 1 1930.
HERBERT HOOVER.
Annual Report of Secretary of Treasury Mellon—Cost
of Government Borrowing Lowered Through
Financing of Treasury Bills—Credit Conditions—
Gold Fund of Federal Reserve Board—Amendments Proposed to Second Liberty Loan Act—
Study of Branch and Chain Banking—Receiverships of Three Joint Stock Land Banks.
In his annual report presented to Congress on December
4, Secretary of the Treasury Mellon states that "of special
importance to the finances of the year was the income tax
reduction for corporations and individuals enacted by Congress in December 1929." As a result of this reduction, the
revenue collected in the fiscal year, according to the report
"was about $80,000,000 less than it would have been at 1928
tax rates." The report notes that "owing to the uncertain
prospect of a surplus for the fiscal years subsequent to 1930,
this tax reduction was made applicable only to taxes payable
on the income for 1929." It is shown in the report that in
the fiscal year 1930 Government receipts exceeded expenditures and a further substantial reduction was made in the
public debt. Ordinary receipts, according to the report,
amounted to $4,177,941,702, expenditures chargeable against
ordinary receipts to $3,994,152,487, and surplus receipts to
$183,789,215. The gross public debt was reduced by $745,889,448, and stood on June 30, 1930 at $16,185,308,299. In
extracts from the report further below we give details of
the receipts and expenditures as set forth therein. Details
regarding the various issues of new Treasury bills are likewise presented in the report, and it is observed that "the
cost of Government borrowing during the year was substantially below that of the preceding year, due chiefly to the
unusually low rates at which new securities were issued."
Reference is also made in the report to the legislation
whereby capital gains resulting from the sale of these
Treasury bills are exempt from taxation. Secretary
Mellon proposes, in his recommendations for legislation,
amendments to the Second Liberty Loan Act, and asks
for authority to issue $8,000,000,000 bonds under the provisions of that act in furtherance of the refunding operations, to be undertaken later, with respect to First and
Fourth Liberty Loan Bonds callable in 1932 and 1933 respectively. Secretary Mellon likewise renews his recommendation of two years ago that a further amendment to
the Second Liberty Loan Act be made so as to exempt
further issues of securities from the surtax as well as the
normal tax. The report likewise deals with the Treasury
Department's earlier recommendation for "the adoption
of a constitutional amendment permitting the Federal and
State Governments, respectively, to tax securities to be
Issued in the future, which under present constitutional
provision are not taxable." Mr. Mellon's recommendations
follow:
RECOMMENDATIONS FOR LEGISLATION.
Amendments to the Second Liberty Bond Act.
The Second Liberty Bond Act, as amended (Sec. 752, title 31, U. S. 0.)
authorizes the Secretary of the Treasury, with the approval of the President, to issue bonds in an amount "not exceeding in the aggregate
$20,000,000,000." A total of $18,107,942,750 in bonds has been issued
under authority of that act, leaving a balance issuable thereunder at the
present time of $1,892,057,250.
A total of $1,933,545,750 of first Liberty loan bonds, $536,290,450 of
which bear 41
/
2% interest, $5,004,950 4% interest, and $1,392,250,850
3/
1
2% interest, are callable in June 1932. A total of $6,268,241,150 of
41
/
2% fourth Liberty loan bonds are callable in October 1933. While it
Is impossible to forecast at this time what form future refunding operations will take, it is obvious that the orderly and economical management of the public debt requires that the Treasury Department should have
complete freedom in determining the character of securities to be issued
and should not be confronted with any arbitrary limitation which was
not intended to apply to these circumstances. Moreover, it is highly
desirable that the authority be provided well in advance of actual needs.
[VoL. 131.
It is recommended, therefore, that additional authority be given for
the issue of $8,000,000,000 in bonds under the provisions of the Second
Liberty Bond Act, as amended.
In this connection I renew the recommendation contained in my annual
report for the fiscal year ended June 30 1928 that the Congress consider
a further amendment to the Second Liberty Bond Act, as amended, authorizing the Secretary of the Treasury to exempt further issues of securities
from the surtax as well as the normal tax. In the act of June 17 1929,
Congress modified the Second Liberty Bond Act, as amended, by providing
that all certificates of indebtedness and Treasury bills issued thereafter
should be exempt both as to principal and interest from all taxes, except
estate and inheritance taxes. I renew my recommendation that this
exemption be extended to bonds. Special legislation is not required in
the case of notes, since the Secretary of the Treasury is authorized by
existing law to make this exemption applicable to notes.
Some time ago the Treasury Department earnestly recommended the
adoption of a constitutional amendment permitting the Federal and State
Governments, respectively, to tax securities to be issued in the future,
which under present constitutional provision are not taxable. There
appears, however, to be no immediate prospect of such an amendment
being adopted. Pending its adoption, there is no reason why the Treasury
Department, in marketing securities, should be at a disadvantage as
compared with States and their subdivisions, or why there should be discrimination against individual investors who desire to acquire United
States Government securities. It is idle to argue that the issuance of
United States tax-exempt securities would furnish convenient means of
income tax avoidance. As long as the States and their political subdivisions continue to issue securities which are wholly tax exempt at the
rate of $1,000,000,000 a year, there is at all times an ample supply of
gilt-edge securities available to those desiring to escape income-tax payment through investment in tax-exempt securities. Limiting the Federal
Government to the issuance of securities exempt only from the normal
income tax does not result in increased income tax collections, but simply
in a higher interest cost to the Government.
In so far as individual investors are concerned, the present situation
gives rise to discrimination as between them and corporations. Corporations being only subject to the normal tax, United States securities in
their hands are completely tax exempt, whereas practically all such
securities in the hands of individuals are subject to surtaxes. The yield
on United States securities for many individual investors does not, therefore, compare favorably with the yield on similar securities held by
corporations, nor does it compare favorably with the yield on State and
municipal securities, which are usually wholly free from all taxation.
The holdings of gold by the Treasury for the account
of the Federal Reserve Board are referred to in the report,
which states that this "Gold Fund" amounted on June 30
1930 to $1,796,239,234, an increase of $233,813,655 in the
fiscal year. Regarding this fund we quote from the report
as follows:
The Currency Trust Fund and the Gold Reserve Fund,
The respective amounts of gold coin and bullion and silver dollars held
in the Treasury on June 30 1930, against equal amounts of outstanding
gold certificates, silver certificates, and Treasury notes of 1890, were as
follows:
$1,489,989,479
Gold coin and bullion
487,198,111
Silver dollars
1,260,050
Silver dollars against Treasury notes of 1890
Total
81,978,447,640
On June 30 1930, the gold reserve against United States notes and
Treasury notes of 1890 was $156,039,088. The United States notes, for
which this reserve is held, are outstanding in the amount of $346,681,016,
a sum which is fixed by law. When such notes are received they are
reissued. The Treasury notes of 1890, for which this gold reserve is also
held, were outstanding on June 30 1930, in the amount of $1,260,050.
When such notes are received they are not reissued.
Gold Held for the Federal Reserve Board.
The Treasury also holds in trust a large amount of gold for the account
of the Federal Reserve Board. This is known on the books of the Treasury
as "Gold Fund, Federal Reserve Board," and amounted on June 30 1930,
to $1,796,239,234, an increase of $233,813,655 in the fiscal year. The
fund is an aggregate of net deposits of gold made by the Federal Reserve
Banks, principally for the purpose of effecting clearance settlements
among themselves, and by the Federal Reserve agents of gold received by
them as part of the security against outstanding Federal Reserve notes.
Against the gold in the general fund, amounting on June 30 1930, to
$51,254,731, there was a liability of $38,675,622 for the Treasurer's 5%
gold redemption fund for Federal Reserve notes ($1,442,350 notes in
process of redemption are a charge against this amount). This gold is
part of the gold received by Federal Reserve Agents as security against
outstanding Federal Reserve notes.
The following is the main portion of Secretary Mellon's
report dealing with the Government's finances, credit conditions, Treasury bills, etc.
ANNUAL REPORT ON THE FINANCES.
Treasury Department.
Washington, D. C., November 20, 1930.
Sir: I have the honor to make the following report:
The finances of the Federal Government for the fiscal year 1930 con.
tinned the favorable record of recent years. Receipts exceeded expenditures
and a further substantial reduction was made in the public debt. Ordinary receipts amounted to $4,177,941,702, expenditures chargeable against
ordinary receipts to $3,994,152,487, and surplus receipts to $183,789,215.
The gross public debt was reduced by $745,889,448, and stood on June 30
1930, at $16,185,308,299. The year closed with approximately the same
surplus as the fiscal year 1929, an increase in receipts being offset by a
corresponding increase in expenditures chargeable against these receipts.
The surplus figures for 1930, however, were not strictly comparable to
1929, since certain foreign interest payments were made in cash rather
than in securities, thus diminishing public debt retirements chargeable
against ordinary receipts and increasing the surplus by a corresponding
amount. This method of payment was a departure from the practice of
a number of years of making payments with obligations of this Government. Had the former practice been employed, these payments, as in the
past, would automatically have constituted public debt retirements
FINANCIAL CHRONICLE
DEC. 6 1930.]
chargeable against ordinary receipts and the surplus would have been
approximately $110,000,000,000 instead of $183,789,215. The increase
in ordinary receipts over 1929 was due in the main to the effect of active
industry and trade on the major source of revenue—taxable incomes for
the calendar years 1928 and 1929—and to increased receipts on foreign
Indebtedness. Larger expenditures reflected the increased amounts for
general governmental activities and also the net amount loaned from the
agricultural marketing fund established under the authorization of the
agricultural marketing act approved June 15 1929. As in preceding
years the major part of the reduction in the public debt was through the
sinking fund and through other regular debt retirement operations. The
public debt operations were conducted at the most favorable rates in
recent years, owing to the low money rates which prevailed throughout
most of the fiscal year.
Of special importance to the finances of the year was the income tax
reduction for corporations and individuals enacted by Congress in December 1929. The reduction applied to income taxes for the calendar year
1929 payable for the most part in 1930. Consequently, the revenue collected in the fiscal year 1030 was about $80,000,000 less than it would
have been at 1928 tax rates. Owing to the uncertain prospect of a surplus for the fiscal years subsequent to 1930, this tax reduction was made
applicable only to taxes payable on the income for 1929. This is the first
Instance in which income tax rates have been reduced for a single calendar
year in order to relieve individuals and corporations from taxes when a
surplus of receipts was anticipated without assurance that this surplus
would continue for more than one year. During the calendar year 1930
the income tax reduction afforded relief to both individuals and corporations during a period of unfavorable business developments.
Of further special interest in 1930 is the financing conducted by the
Treasury through the new Treasury bills provided for in the act of June
17 1929, which was amended by the Act approved June 17 1930. This
new instrument of financing is now established as a valuable supplement
to certificates of indebtedness in the conduct of short-term borrowing
operations.
BUDGET RESULTS.
Receipt&
The total ordinary receipts of the Federal Government during the
fiscal year 1930 were $4,177,941,702, an increase of almost $145,000,000
over the fiscal year 1929. . . . During the past year there was an
increase in the receipts from each of the major sources of revenue with
the exception of customs duties.
ORDINARY RECEIPTS CLASSIFIED ACCORDING TO MAJOR SOURCES
FOR TEE FISCAL YEARS 1929 AND 1930.a
Classes of Ordinary Receipts.
Receipts from taxation:
Customs
Internal revenue—
Income taxes:
Current corporation
Current individual
Back taxes b
Total income tax
1929.
3
602.300,000
1930.
$
587,000,000
Increase.
$
1,075,300,000 1,117,800,000 42,500,000
1 019,000,000 1,060,900,000 41,900,000
236,400,000 232,300,000
Decrease.
—
3
15,300,000
4,100,000
2,330,700,000 2,411,000,000 80,300,000
Miscellaneous internal rev.:
Tax on small cigarettes_ _ _ 341,900,000 359,800,000 17,900,000
92,500,000
90,500,000
All other tobacco taxes_ __
2,000,000
Stamp tax on capital stock
37,600,000
46,700,000 9,100,000
transfers
Stamp tax on bonds and
17,900,000
22,600,000 4,700,000
capital stock issues, &o._
61,900,000 64,800,000 2,900,000
Estate tax
55,500,000
43,900,000
All other internal rev.b
11,600,000
Total misc. internal rev_
607,300,000 628,300,000 21,000,000
Total recta,from taxation 3,540,300,000 3,626,300,000 86,000,000
Miscellaneous receipts:
Proceeds from Governmentowned securities:
Foreign obligations
All other
All other receipts, including
trust funds
199,100,000
22,500,000
239,500,000 40,400,000
20,300,000
271,300,000
291,800,000 20,500,000
Total miscellaneous recta. 492,900,000
551,600,000 58,700,000
2,200,000
—
Total ordinary receipts__ 4,033,200,000 4.177.900,000 144,700.000
a On basis of daily Treasury statements (unrevised) supplemented by reports
of the Commissioner of Internal Revenue.
b Includes adjustment to basis of daily Treasury statement (unrevised).
Receipts from taxes increased $86,000,000 and from other sources
$58,700,000. Receipts from taxation, strictly speaking, represent that
portion of the Government revenue which is derived from authorized levies
upon the people primarily to secure funds for the conduct of governmental
activities. Nontax receipts are composed of amounts received by the
Government incidental to the performance of its various functions; among
these receipts are included the proceeds of Government-owned obligations,
fees (including consular, passport, and patent fees), fines and penalties,
rents and royalties, the immigration head tax, the tax on the circulation
of national banks, seigniorage on coinage of subsidiary silver and minor
coins, and receipts of trust funds which are invested as specified for the
particular trust. The changes in receipts from specific sources are considered in detail in the following paragraphs.
Considerably more than half of the ordinary receipts are derived from
taxes on the income of individuals and corporations. These receipts were
$2,411,000,000 in 1930, as compared with $2,330,700,000 in 1929, or an
increase of $80,300,000. The collections from income taxes due in prior
years, or back taxes, decreased from $237,000,000 in 1929 to $232,000,000
in 1930,5 or about $5,000,000. Back taxes include additional assessments, penalties, and interest, on returns for prior years determined as
a result of audit, and the payments on delinquent returns. Smaller receipts
from back taxes are due to the reduced volume of additional assessments
on returns of recent years, as compared with the volume of such assessments on the returns for war years. Receipts from current income taxes
Increased $84,400,000 in 1030, from $2,094,300,000 to $2,178,700,000,
reflecting changes in the taxes on incomes returned for current years as
considered below.
In December 1929, Congress made special provision to reduce the tax
rates on incomes for the calendar year 1929. It was then apparent that
the tax yield at 1928 rates would be more than sufficient for budget
requirements in the fiscal year 1930, including the regular retirements
*These figures for back tax collections are before adjustments made in data
In the table on nage 3 ipsmphlet reporth
3599
of the public debt chargeable against ordinary receipts. This was due
primarily to the increase in incomes of both corporations and individuals
during the years immediately preceding, especially in the calendar year
1928. Accordingly, provision was made to reduce- by 1% the normal
rates on individual income and the rate on corporation income applicable
to incomes reported for the calendar year 1929. This tax reduction affects
for the most part receipts during the calendar year 1930, therefore affecting both the fiscal years 1930 and 1931. According to the Treasury's
estimates, corporation income tax receipts during the calendar year 1930
would be reduced by about $90,000,000 and individual income tax receipts
by about $70,000,000, distributed approximately equally over the flocs)
years 1930 and 1931. The tax reduction would pertain to the entire taxable net income of corporations and to the net income of individuals
subject to normal tax rates.
Current income tax collections from corporations were $1,117,800,000
in the fiscal year 1930 as compared with $1,075,300,000 in the preceding
fiscal year, an increase of $42,500,000. In general, this increase reflects
the growth in corporate income for the calendar years 1928 and 1929
/
2% to 12%
which more than offset the reductions in tax rate from 131
for 1928 incomes, and from 12% to 11% for 1929 incomes.
Current income tax collections from individuals increased almost as
much as those from corporations, from $1,019,000,000 to $1,060,900,000,
or $41,900,000. All of this increase, however, was due to collections
from July to December 1929, on the unusually large individual incomes
for 1928. During the last six months of the fiscal year, collections, which
were largely on incomes for the calendar year 1929, were more than
$100,000,000 below the preceding year, in part due to the special reduction of 1% in the normal rates of tax on 1929 incomes and in part due
to the effect on taxable incomes of the precipitous decline In security
prices in the latter part of 1929. In spite of this decline, however, individual incomes were, with the exception of the 1928 incomes, at new high
levels reflecting largely the effect of active industry and trade on the
growth of income from certain sources, such as salaries, interest, and dividend payments.
Receipts from miscellaneous internal revenue taxes increased from
$607,300,090 to $628,300,000 or $21,000,000. In contrast to income
taxes, most of these taxes are due currently and so reflect current changes
in the sources to which they relate. Over 90% of the miscellaneous
internal revenue comes from three groups of taxes—tobacco taxes, documentary stamp taxes, including playing cards, and the estate tax. Increases in receipts from these three sources of about $32,000,000, as compared with 1929, were offset somewhat by decreases in receipts from
other taxes, mainly from delinquent taxes under repealed laws. During
the fiscal year 1929 collections were largely completed on these delinquent
taxes resulting in smaller receipts in 1930, particularly for the tax on
manufacturers' sales of automobiles, repealed in the Revenue Act of 1928,
and for the corporation capital stock tax repealed in the Revenue Act
of 1926.
The tobacco taxes constitute not only the major source of intertud
revenue other than income taxes, but also the source which has be
least affected by changing business conditions. Collections during 1930
were $450,300,000 as compared with $434,400,000 in the preceding year,
an increase of about $15,900,000. The increase during 1930 was relatively small in comparison with recent years and especially in comparison
with the unusual increase of $38,000,000 in the fiscal year 1929. The
tax on small cigarettes showed an increase of $17,900,000 while the taxes
on all other tobacco products decreased by $2,000,000. Although the
collections on small cigarettes failed to increase as much as in 1929, or
even as much as the average for recent years, the total collections reached
a new high level of almost $360,000,000 which represents tax-paid withdrawals of about 120,000,000,000 cigarettes. The volume of cigarettes
consumed each year is now considerably more than double that of 10 years
ago. In contrast, the decrease in collections from taxes on tobacco prodnen; other than cigarettes indicates the effect on the consumption of other
tobacco products of the increasing use of cigarettes. The tax-paid withdrawals of cigars and of smoking and chewing tobacco have declined
about 20% during the past 10-year period.
Collections from documentary stamps, representing largely taxes on
capital stock transfers and capital issues, increased $13,600,000 to a
total of almost $78,000,000, as a result of the unusual situation in the
security markets. The revenue from documentary stamps thus exceeded
any prcceding year except 1920, notwithstanding the reductions in the
number of these taxes and in the rates of tax in the revenue acts subsequent to the war. The stamp tax on the unusual volume of capital stock
transfers is primarily responsible for the large receipts. The unprecedented activity in the stock market was reflected in increased collections
during the first part of the fiscal year 60 that by the end of November
receipts from the capital stock transfer tax were almost $11,000,000
larger than the record receipts for the same period in the previous fiscal
year. The volume of transfers continued large for the remaining months
of the fiscal year 1930 and collections for the year as a whole, at $46,700,040, were $9,100,000 larger than the year before and almost double the
receipts from this tax during the fiscal year 1928. There were also
increased collections from stamps in the group including taxes on issues
and the total for the year for this group was
of bonds, capital stock,
almost $5,000,000 larger than the preceding fiscal year.
Estate tax collections were only slightly larger, $64,800,000, as compared with $61,900,000 the preceding year, but the increase is significant in view of the marked revision in these taxes in the 1926 Revenue
Act, involving increase in the amount of the gross estate exempt from
tax decrease in the rates of tax, and increase, to 80% of the Federal
tax, in the credit allowed for State inheritance taxes paid. The continued
high level of collections is due in part to the additional assessments determined as a result of the audit of returns filed and in part to the increase
in the values of estates in recent years. The value of total gross estates
filed during the calendar year 1929 was $3,844,000,000, or $341,000,000
more than in returns filed during the calendar year 1928.
Customs receipts were $587,000,000, or $15,300,000 less than in 1929.
The unusual tariff and trade conditions during the year resulted in
wide fluctuations in the monthly receipts. During the first part of the
year, July to October, inclusive, collections were in record volume. Beginning November, however, they reflected the general depression in trade
and to a certain extent the effect on imports of the prolonged tariff discussion. Collections for January to April, inclusive, were at the lowest
levels under the 1922 Act, so low in fact that the cumulative receipts
from the beginning of the fiscal year, which in October showed an increase
of $11,000,000 over the preceding year, were at the end of April $38,000,000 smaller than the year before. The closing months of 1930 witnessed
an abnormal increase in the imports of those dutiable commodities affected
by the upward rate revisions in the Tariff Act of 1930, then in its final
stages. Collections during these months reached new record totals.
3600
[vol.. 131.
FINANCIAL CHRONICLE
Over $72,000,000 of duties were received in June, as compared with
$.52,000,000 the preceding June.
Miscellaneoas receipts from nontax items increased from $492,900,000
in 1929 to $551,600,000 in 1930, or $58,700,000. Almost half of these
receipts are derived from Government-owned securities. Small amounts
are derived from a wids variety of minor sources. The most important
change during 1930 was in the receipts from foreign obligations which
were $230,500,000, or $40,400,000 larger than in the preceding year.
Receipts from France were about $37,000,000 more than in 1929. The
debt funding agreement with France was approved by Congress, December 18 1929, effective as of June 15 1925. Payments during 1930 included
not only the amount of $35,000,000 due for that year under the agreement but also the additional amount of about $22,000,000 to put on a
current basis the annuity payments, due under the agreement.
The Treasury's estimate of total tax receipts for the fiscal year 1930
compared very satisfactorily with the results. Total tax receipts of
$3,626,000,000 were $11,000,000 less than the estimated receipts of
$3,637,900,000 as adjusted for the income tax reduction. Income taxes
were estimated at $2,480,000,000 before the tax reduction for 1929 was
enacted. Taking into consideration the effect of the tax reduction applicable to collections due in the last half of the fiscal year, the estimate is
reduced to $2,400,000,000, which is $11,000,000 less than the actual
receipts, a relatively small discrepancy in view of the large volume of
receipts involved and the unusual conditions affecting incomes derived in
1929 from the sale of securities. Back tax collections were $12,000,000
larger and current collections on incomes $1,000,000 smaller than anticipated. The collections from both corporations and individuals were
very close to the estimates. Miscellaneous internal revenue receipts of
$628,000,000 were $7,000,000 less than estimated, a difference accounted
for by offsetting discrepancies for various items. Tobaoco taxes failed
by almost $15,000,000 to reach the anticipated figure of $465,000,000
due to slower growths than anticipated in cigarette collections, especially
during the latter part of the fiscal year. This decline was offset in part
by collections on documentary stamps, about $8,000,000 in excess of the
estimates. Customs duties, including the tonnage tax, were estimated at
$602,000,000, or $15,000,000 in excess of the final results. The unusual conditions during the year, as mentioned previously account for
this discrepancy.
Expenditures.
Total arpenditures chargeable aginst ordinary receipts amounted to
$3,994,152,487 for the fiscal year 1930 as compared to $3,848,463,190
for 1929, an increase of $145,689,297, or 3.8%. Of this total, ordinary
expenditures (i. e., the amount expended exclusive of public debt retirements chargeable against ordinary receipts) amounted to $3,440,268,884
during this fiscal year as compared to $3,298,859,486 last year, an increase of $141,409,398. Public debt retirements chargeable against ordinary receipts were $553,883,603 this year compared to $549,603,704 In
the preceding year, an increase of $4,279,899. Comparisons between expenditures for 1929 and 1930 are presented in the following table.
about $150,000,000 for the fiscal year. Increases in expenditures were
p.irtly offset by a decline of $19,000,000 in interest payments on the
public debt and by a reduction of $54,600,000 in the refunds of interne
revenue and customs receipts.
Chart 4 [this we omit.—Ed.] shows the trend of total expenditures
chargeable aginst ordinary receipts since 1923. Two tendencies are
noticeable: The proportion of general expenditures to total expenditures
has remained fairly constant, varying between 51% and 55% and the
proportion of interest payments has consistently declined from 28% of
total expenditures in 1923 to 17% in 1930. The amounts expended. for
general government have varied between $2,974,000,000 and $3,440,000,000. The increase in these expenditures over the period reflects in considerable measure growth in the responsibilities which devolve upon the
Federal Government for many types of supervisory, developmental, and
research activities. The decline in interest payments on the public debt
is the result of reduction both in the public debt outstanding and in the
average annual rate of interest.
Surplus.
The surplus of ordinary receipts for the fiscal year 1930 over expenditures chargeable against these receipts was $183,789,215, according to the
daily Treasury statement, unrevised. The entire surplus was applied during the year to retirement of the public debt. A summary of ordinary
receipts, expenditures chargeable aginst ordinary receipts, and the surplus
for the past nine years is presented in the accompanying table:
ORDINARY RECEIPTS, EXPENDITURES CHARGEABLE AGAINST
ORDINARY RECEIPTS, AND SURPLUS, FOR THE FISCAL
YEARS 1922 TO 1930.
(On basis of daily Treasury statements (unrevised).1
Fiscal Year.
1922
1923
1924
1925
1926
1927
1928
1929
1930
Total
Ordinary
Receipts.
Expenditures
Chargeat,le Against
Ordinary Receipts
54,109,104,151
4,007,135.480
4,012,044,701
3,780,148,684
3,962,755,690
4,129,394,441
4,042,348,156
4,033,250.225
4.177.941.702
53,795,302,500
3,697,478,020
3,506,677,715
3,529,643,446
3,584,987,873
3,493,584,519
3,643,519,875
3.848,463,190
3.994.162.487
Surplus.
$313,801,651
309,657,460
505,366,986
250,505,238
377,767,817
635,809,922
398,828.281
184,787,035
183.789 215
Compared with expencrtures, the surplus indicates that ordinary receipts
were only 4.6% in excess of the Government's requirements. As stated In
my last report, the management of Federal finances so as to accomplish
such a close adjustment of receipts to expenditures is considered by the
Treasury to be very satisfactory, especially in view of the fact that sinking
fund and other debt retirement operations are adequate to retire the public
debt at a reasonably rapid rate.
The surplus receipts were larger than anticipated. The estimated surplus shown in the Secretary's annual report for 1929 was $225,581,534.
This amount was subsequently reduced to $145,581,534 to allow for the
EXPENDITURES CHARGEABLE AGAINST ORDINARY RECEIPTS. income tax reduction authorized by Congress in December 1929. The
surplus
receipts were about $38,000,000 in excess of this adjusted estiCLASSIFIED ACGORDING TO MAJOR GROUPS, FOR THE
mate. The major variations between the actual results and the estiFISCAL YEARS 1929 AND 1930.
mates are summarized in the following table:
[On basis of daily Treasury statements (unrevised).]
PRINCIPAL VARIATIONS IN ORDINARY RECEIPTS AND EXPENDITURES CHARGEABLE AGAINST ORDINARY RECEIPTS, AS
Increase, Decrease.
1929,
Classes of Expenditures.
1930.
COMPARED WITH ESTIMATES FOR THE FISCAL
16
YEAR 1930.
$
Ordinary expenditures—
$
$
Actual Greater (-I-) or
General expenditures:
Less(—)than Estimate
20,000,000 2,500,000
17,500,000
Legislative
Ordinary receipts:
700,000
200,000
500,000
Executive proper
*—$10,700,000
Tax receipts
900,000
14,200.000
13,300.000
State Department
+19,400,000
Miscellaneous receipts
200,400,000 193,100,000
7,300,000
Treasury Department
416,900,000 453,500,000 36,600,000
War Department
*+58,700,000
Total ordinary receipts
32,500,000 3,600,000
28,900,000
Department of Justice
100,000
43,000,000 Expenditures chargeable against ordinary receipts:
43.100,000
Post Office Department__
Ordinary expenditures—
364,600,000 374,200,000 9,600.000
Navy Department
—$31,700,000
General expenditures
11.100,000
290,000,000
301.100,000
Interior Department
+75,000.000
Agricultural marketing fund (net)
Department of Agriculture_ 171,200,000 177,600,000 6,400,000
+3,700,000
Other
54,300,000 14,300,000
40,000,000
Department of Commerce__
700,000
10,600,000
11,300,000
Department of Labor
+$47,000,000
Total ordinary expenditures
417,300,000 446,900,000 29,600,000
Veterans' Bureau
—76,500,000
Public debt expenditures chargeable against ordinary receipts
Other independent offices
49,560,000 9,200,000
40,300,000
and commissions
—29,500,000
Total expenditures chargeable against ordinary receipts
District of Columbia and
45,500,000 5,400,000
40,100,000
unris,,ined items
*+538,200,000
Surplus
,
2 106,500.000 2,162,700,000 56,200,000
*After adJustment for 1929 tax reduction.
Other ordinary expenditures:
Total ordinary receipts were substantially as estimated. Tax receipts
19.000,000
Interest on public debt...... 678,300,000 659,300,000
54,600,000 failed by $10,700,000 to reach the estimated figure, but this loss was
Refunds of tax recelpts____ 212,600,000 158,000,000
3,000,000 more than offset by the fact that miscellaneous receipts were $19,400,000
91,700,000
94,700,000
Postal d.:flcIency
31,700.000 15,800,000
15,900,000
Shipping Board
in excess of expectations. Ordinary expenditures were $47,000,000 more
160,000,000 160,000,000
AgrIcel. marketing fund,net
4,000,000 than anticipated. Although general expenditures for Government departAll other, incl. trust funds_ 190,900,000 186,900,000
ments were $31,700,000 under the estimates, other ordinary expenditures
1,192,400,000 1,277,600,000 85.200,000
Total
exceeded the estimates by $78,700,000 due principally to the amounts
loaned from the agricultural marketing fund.
Total ordinary expend's_ 3,298,900,000 3,440,300,000 141,400,000
Notwithstanding the increase in ordinary expenditures, as compared
Public debt retirements
with the estimates, the surplus exceeded the estimated $145,581,534.
chargeable against ordinary
This was due to the fact that public debt retirements chargeable against
549,600,000 553,900.000 4,300,000
receipts
ordinary receipts were about $76,500,000 less than anticipated chiefly as
Total expenditureschargea result of foreign payments made in cash instead of in securities. In
able against ord. rects__ 3,848,500.000 3,994,200,000 145,700.000
the Budget it was assumed that payments by foreign governments would
the various Acts relating to
The increase of $145,700,000 in total expenditures chargeable against be made in United States obligations. Under
principal may be made in
ordinary receipts reflects an increase of $56,200,000 in the so-called gen- foreign indebtedness, payments of interest and
received
60
securities
have been canceled,
The
eral expenditures for operating the Federal Government and an increase United States obligations.
in all other expenditures of $89,500,000. General expenditures for oper- automatically reducing the public debt, and such retirements have been
retirements chargeable against ordinary reating the various Government departments, including the legislative and included in the public debt
page 37, it has been the practice of foreign govexecutive branches, increased over 2.6% and all other expenditures in- ccipts. As explained on
ernments in recent years to make practically all payments in securities.
creased slightly over 5.1% compared with 1929.
include among the
The increased expenditures for general government reflect largely in- Accordingly, it has been the Govvernment's practice to
the
for
estimated public debt retirements chargeable against ordinary receipts
creases of $36,600,000 for the War Department, $29,600,000
approximately equal to the prospective receipts from foreign govVeterans' Bureau, and $14,300,000 for the Department of Commerce; the amounts
June 1930, however, payments by foreign governments of
latter represents largely increased expenditures in connection with the ernments. In
interest were made in cash. Of these cash payments the
work of the Bureau of the Census. These increases were partly offset principal and
by declines of about $43,000,000 for the Post Office Department, $11,100,- entire amount on account of interest, and that part of payments of prinof surplus war and relief supplies sold on credit (as
000 for the Interior Department, and $7,300,000 for the Treasury Depart- cipal on account
on page 50), are not required by law to be used for debt
ment. In this connection it should be noted that nonrecurring expendi- described
tures of the Post Office Department were exceptionally large in 1929, retirement. Therefore public debt retirements from these receipts could
receipts for 1930.
owing to the compensation to railroads during that year for mail trans- not be included in retirements chargeable against ordinary
In order to facilitate the interpretation of Government accounts and of
portation service rendered in earlier years. This payment made in 1929
analysis of receipts
explains in large measure the decline of $43,000,000 in the amount ex- the surplus in the future, a revision was made in the
and expenditures included in the daily Treasury statement, effective July 1
pended for the department in 1930 compared with the previous year.
funds are shown
trust
and
funds
special
of
operations
the
whereby
1930,
The increase in other expenditures chargeable to ordinary receipts is
azoounted for primarily by loans from the fund established by the Agri- separately from the operations of the general fund. The description of
cultural Marketing Act approved June 15, 1929, in the net amount of this revised statement appears as Exhibit 70, page 433.
DEC. 6 1930.]
FINANCIAL CHRONICLE
THE PUBLIC/ DEBT.*
General Review of Operations.
Fiscal year 1930.-During the fiscal year 1930 public debt receipts on all
accounts aggregated $3,722,970,170.85 and expenditures, $4,468,859,619.27.
Accordingly the gross debt of $16,931,197,747.60 outstanding at the beginning of the year was reduced to $16,185,308,299.18 at the end. The
net reduction in the debt was $745,889,448.42, of which amount $553,883,603.25 was discharged from ordinary receipts through the cumulative sinking fund and other established debt retirement accounts. The balance of
the reduction was effected chiefly through retirements from surplus. The
total interest-bearing debt was reduced $717,049,029.35, the matured debt
on which interest has ceased was reduced $19,036,029, and the debt bearing no interest was reduced $9,804,390.07. The reduction in the interest.
bearing debt was almost wholly confined to short-term issues, a net total
of $703,682,019.35 being retired, including $627,994,000 31
/
2% Treasury
notes.
The following comparison of the various classes of debt outstanding on
June 30 1929, and on June 30 1930, indicates the character of the changes
effected during the year, which, as stated above, are confined almost
entirely to the short-dated debt.
CHANGES IN THE PUBLIC DEBT OUTSTANDING JUNE 30 1929 AND
1930, BY CLASSES.
June 30
1929.
Interest-bearing debtRegular Issues:
Pre-war bonds
Liberty bonds
Treasury bonds
June 30
1930.
Increase(+) or
Decrease(-).
$
$
$
770.207,310.00 772,544,850.00 +2,337,540.00
8,217.508,450.00 8,201,803,900.00 -15,704,550.00
3,136,986,600.00 3,136,986,600.00
Total bonds
12,124.702,360.00 12,111,335,350.00 -13,367,010.00
Treasury notes
2,254,109,500.00 1,626,115.500.00 -627,994,000.00
Certificates of indebtedn's 1,640,199,500.00 1.264,354.500.00 -375,845,000.00
Treasury bills
155.916,000.00 +155,916,000.00
Treasury savings certifIL.
13,028,019.35
-13,028,019.35
Total regular issues
16,032,039,379.35 15,157,721,350.00 -874,318,029.35
Special issues Treas'y notes
(trust funds)
606,902,000.00 764,171.000.00 +157,269,000.00
Total int.-bearing debt 16,638.941,379.35 15,921,892,350.00 -717,049.029.35
Matured debt on which interest has ceased
31,715,370.26 -19,035,029.00
50,751,399.26
Debt bearing no interest_ _ _ _
241,504,988.99 231,700,578.92 -9.804,390.07
Total gross debt
16,931,107.747.60 16,185,308.299.18 -745,889.448.42
In the course of the year six regular issues of Treasury certificates of
indebtedness, in the aggregate amount of about $2,100,000,000, matured
on quarterly tax-payment dates. There was the customary concentration
in the Treasury's receipts around these dates. As is usual under such
circumstances, the Treasury's requirements on a given quarterly tax
payment date were determined on the basis of the estimated excess, over
current receipts, of maturing Treasury obligations and of ordinary expenditures for the subsequent quarter. Until the mid-December financing in
1929, it had been the practice to provide for the full quarterly requirements, so determined, through an issue of certificates of indebtedness, the
proceeds of which were left on deposit with the purchasing banks until
required by the Treasury to meet its current expenditures. This procedure
was followed in providing for requirements for the quarter beginning September 15 1929, but thereafter certificates were not invariably issued to
meet the total estimated requirements between quarterly tax-payment
dates. Instead they were issued in somewhat smaller amounts and were
supplemented by subsequent sales of Treasury bills for cash. Four regular
issues of Treasury certificates of indebtedness, in the aggregate amount
of $1,814,062,000, and four supplementary issues of Treasury bills, in
the aggregate amount of $312,024,000, were made during the fiscal year.
The Treasury requirements for the quarter beginning September 15
were met through an issue of 4%52 certificates of indebtedness, Series
TJ-1930, dated September 16 1929, with a 9-month maturity on June 18
1930. Subscriptions aggregating $1,480,696,500 were received and a
total of $549,707,500 was alotted and issued. Particulars concerning this
issue were given in the report for 1929.
For the quarterly financing necessary to meet the payments due on
December 15 1929, including about $700,000,000 of maturing certificates,
and to place the Treasury in funds for meeting the greater part of its
requirements up to the next tax-payment date on March 15 1930, subscriptions were invited on December 6 1929, for an issue of 3%% certificates of indebtedness, Series TS-1930, dated December 16 1929, with a
9-month maturity on September 15 1930. Subscriptions aggregating
$722,552,500 were received, and a total of $351,640,500 was allotted and
Issued, Supplementing this issue of certificates, and for immediate cash
requirements, tenders were invited on December 10 for an issue of
$100,000,000 of Treasury bills, dated December 17 1929, with a
90-day maturity on March 17 1930. This was the initial offering of
Treasury bills, the new type of short-term security bramble on a discount
basis under competitive bidding and designed to supplement regular issues
of certificates of indebtedness as a part of the short-term financing. For
this issue tenders aggregating $223,901,000 were received. The highest
bid received was 99.310, equivalent to a bank discount rate of 2.76%,
and the lowest bid accepted was 99.152, equivalent to a bank discount
rate of 3.392%. The average price received for the issue was 99.181,
equivalent to a bank discount rate of 3.276%. The Treasury's requirements for the same quarter were further supplemented by a second offering of Treasury bills announced on February 11 1930, tenders being
Invited for 90-day bills, dated February 18 1930, to mature May 19 1930,
to the amount of $50,000,000, or thereabouts. Tenders aggregating
$186,183,000 were received, and a total of $56,108,000 was accepted at
prices ranging from 99.250 down to 99.125, the average price being 99.178,
equivalent to a bank discount rate of 3.306%.
On March 7 1930, subscriptions were invited for an issue of 9-month
3%% certificates of indebtedness of Series TD-1930, dated and bearing
interest from March 15 1930, and maturing on December 15 1930. For
this issue subscriptions aggregating $1,290,990,000 were received, and a
total of $483,841,000 was allotted and issued. Following the precedent
and procedure established in the preceding quarter, this regular issue of
certificates of indebtedness was supplemented and followed by issues of
Treasury bills when needed for the Treasury's further requirements up to
the next tax-payment date on June 15. Two issues were subsequently
made as a part of the quarter's financing. On April 7 1930, tenders were
Invited for bills dated April 15 1930, with a 90-day maturity on July 14
1930, to the amount of $50,000,000 or thereabouts. Tenders aggregating
P •Amounte on Sr tia heading are on the basis of daily Treasury statements
(revised).
3601
$132,377,000 were received, and a total of $51,316,000 accepted at prices
from 99.315 to 99.250, the average price accepted being 99.267, equivalent
to a bank discount rate of 2.933%. For the other issue tenders were
invited on May 12 1930, for bills dated May 19, with a 91-day maturity
on August 18 1930, to the amount of $100,000,000, or thereabouts.
Tenders aggregating $275,674,000 were received, and $104,600,000 were
accepted at prices from 99.400 to 99.331, making the average price for
the issue 99.357, equivalent to a bank discount rate of 2.544%.
The final offering of short-term securities for the year was announced
on June 7 1930, when subscriptions were invited for an issue of 12-month
27
4% certificates of indebtedness, Series TJ-1931, dated and bearing
interest from June 16 1930, and maturing on June 15 1931. Subscriptions
aggregating $2,398,792,000 were received, and a total of $429,373,000 was
allotted and issued.
Department circulars and public announcements covering the above issues
will be found in the appended exhibits except for those covering the issue of
certificates on September 16 1929, which will be found in report for 1929.
Some further consideration of Treasury bills appears later in this report.
First quarter, 1931.-The issue of certificates of indebtedness of June
16 was supplemented after the close of the fiscal year 1930 by two issues
of Treasury bills to complete provisions for the quarter ended September 15.
On July 7 1930, tenders were invited for an issue of $50,000,000, or thereabouts, the bills to be dated July 14 and to mature on September 15 1930,
a 63-day term. Tenders were received in the aggregate amount of $328,968,000 and $50,920,000 were accepted at prices from 99.720 to 99.660
and averaging 99.672, the average rate on a bank discount basis being
1.876%. On August 11 1930, tenders were invited for an issue of about
$120,000,000, the bills to be dated August 18 and to mature in 91 days,
on November 17 1930. Tenders to the total amount of $397,162,000 were
received and a total of $120,000,000 was accepted at prices ranging from
99.593 to 99.473 with the average price 99.505, making the average rate
1.960 on a bank discount basis.
For the Treasury's requirements on the September 15 1930, tax-payment
date an issue of 12-month 2%% certificates of indebtedness of Series TS1931, to the amount of $325,000,000 or thereabouts, was offered for subscription on September 8 1930 with certificates dated September 15 1930,
to mature on September 15 1931. Although the interest rate was the
lowest ever offered by the Treasury on a regular short-term issue, subscriptions aggregating $1,237,502,500 were received, the issue being about
four times oversubscribed. A total of $334,211,000 was accepted.
The official circular governing the certifidate issue, and all public announcetnents concerning that issue and the two issues of Treasury bills
after June 30 1930, will be found in the appended exhibits.
Summary of issues-Summary data regarding the certificates of indebtedness issued from September 16 1929, to September 15 1930, and
the Treasury bills issued from December 17 1929, to August 18 1930, are
presented in the following tables:
ISSUES OF CERTIFICATES OF INDEBTEDNESS, SEPT. 15 1929 TO
SEPT. 15 1930.
lane.
Date of
halts.
Date of
Maturity.
Rate.
Amount
Issued.
P. C.
$
June 16 1930 474
549,707,500
Sept.15 1930 334
351,640,500
Dec. 15 1930 354
483,341,000
June 15 1931 254
429,373,000
Sept.15 1931 234
334,211,000
ISSUES OF TREASURY BILLS, DEC. 17 1929 TO AUG. 18 1930.
Series TJ-1930
Series TS-1930
Series TD-1930
Series TJ-1931
Series TS-1931
Sept.16 1929
Dec. 16 1929
Mar. 15 1930
June 16 1930
Sept. 15 1930
Ratescerr
lspending
Date of
Issue.
Days
Date of
to
Ma- Maturity.
urity.
Indicated
Prices,
Price
(per Rank True
$100). Disc. Disc.
Total
Amount
Received.
Face
(Maturity)
Value, Total
Issue.
. C.P. C.
$
$
8
Mar. 17 '30 Av.99.181 .2763.35099,180,780.45 100,000.000.00
II. 99.3102.7602.818
L. 99.1523.3923.469
Feb. 18 '30 90 May 19 '30 Av.99.173 .3063.38055,644,231.50 56,108.000.00
H. 99.2503.0003.065
L. 99.125 .5003.580
Apr. 15 '30 90 July 14 '30 Av.09.267 .9332.99650.939.735.00 51,316,000.00
H. 99.3152.7402.797
L. 99.2503.0003.065
May119 '30 91 Aug. 18 '30Av.99.357 .6442.596 03,927,28200104.600,000.00
11. 99.4002.3742.421
L. 99.
.6472.701
July 14 '30 63 Sept.15 '30Av.99.6721.876 1.90950,752,788.70 50,920,000.00
H. 99.7201.600 1.627
L. 99.6601.943 1.977
Aug. 18 '30 91 Nov. 17 '30Av.99.5051.960 1.997 119,405.468.74120,000,000.00
H. 99.5931.610 1.639
L. 99.473 .0852.125
Dec. 17 '29 90
Cost of Government Borrowing.
The cost of Government borrowing during the year was substantially
below that of the preceding year, due chiefly to the unusually low rates
at which new securities were issued. An additional factor was the use
of Treasury bills as a supplement to the regular financing through certificates of indebtedness.
The rates at which new issues of Government securities can be marketed are dependent upon conditions in the money market, as evidenced
in part by current market quotations on loans of similar character and
maturity. As outlined in succeeding paragraphs, short-term money rates
in 1929 reached the highest levels in recent years and subsequently dropped
to new postwar low levels. Rates on new Government issues during the
period show similar striking changes. Rates of 5% and 47
41% on certificates issued on June 15 and September 16 1929, respectively, represented the highest rates at which Government securities have been marketed since 1921. The issues of June and September 1930, carried rates
of 27
4 and 2%%, respectively. Prior to the June issue, the lowest rate
carried by comparable Government securities was 23!%, the rate on
certificates issued in June and September 1924. Furthermore, on July
14 and October 15 and 18 1930, funds were obtained through the sale
of Treasury bills at still lower rates, the average bank discount rate on
4%. The steady decline in rates of
these issues being a'rproximately 17
debt issues after September 15 1929, is shown in the summary data
these
issues.
above for
The range in rates on certificates of indebtedness issued during the
fiscal year 1929 was 41/s to 5141%, while during 1930 rates on similar
4%, with these issues after September 16
4 to 47
issues range from 27
1929, at or below 314%. The highest rate on any debt issue after Sep1
2%, as compared with 414%, the
tember 16 1929, was slightly over 3/
lowest rate in the preceding fiscal year.
3602
FINANCIAL CHRONICLE
The special use of the Treasury bills as a supplement to the usual
method of short-term financing further reduced the cost of borrowing. Funds
secured in February, April, and May through the issue of Treasury bills
would otherwise have been borrowed in the regular issues of certificates
of indebtedness on the quarterly tax-payment dates, that is, in December for the February issue and in March for the April and May issues.
Costs were thus lowered somewhat through the reduction in the period
for which credit was extended to the Government prior to its use.
Furthermore, in the case of the latter two issues of Treasury bills the
Treasury was able to borrow at lower rates than at the preceding quarterly
tax-payment date owing to the rapidity of the decline in open market
money rates during the period.
[VoL. 131.
industry was reacting from an earlier overstimulation in important lines,
culminated in October and November in violent declines in security prices.
Despite some recovery during the last month of the year, stock prices at
the end of December, as measured by the Standard Statistics index of
404 stocks, were about 35% below the high point which was reached in
September.
The break in security prices was accompanied by a liquidation of loans
on an unprecedented scale. Total reported loans to brokers in New York
City declined from about $8,550,000,000 at the beginning of October
to about $4,000,000,000 at the end of the year. This decrease of about
$4,550,000,000 reflected chiefly the withdrawal of funds from the market by lenders other than member banks. In its initial stages this withdrawal of funds resulted in New York City member banks taking over
Credit Conditions.
the loans on these other lenders. By the end of the year, however, loans
During the year ended June 30 1930, banking and credit conditions in to brokers by member banks in New York City also declined, averaging
the United States went through a complete readjustment. Money rates, lower in December than in August and September. Notwithstanding some
which at the beginning of the period were at a higher level than at any increase in member bank loans on securities to others than brokers, the
time since 1920, began to decline rapidly about the middle of November net liquidation of reported loans on securities amounted to about $4,000,1929, and by the summer of 1930 were at the lowest levels of postwar 000,000 for the period.
years. Factors accounting for both the advance and the subsequent deDuring the first half of 1930 loans to brokers in New York City by
cline in the cost of credit were dominated largely by conditions in the nonbank lenders continued to decline, and there was considerable shifting
security market.
of brokers' loans to member bank account, chiefly at member banks in
For several years prior to the autumn of 1929, particularly after 1926, New York City. By the end of June, however, security loans of all memsecurity prices rose continuously and rapidly and the volume of trading ber banks were about $150,000,000 larger than at the end of 1929 and
showed unusual expansion. By September 1929, security prices were at about $340,000,000 larger than at the beginning of October of that year.
an unprecedentedly high level and the volume of trading had grown to This growth in the security loans of member banks was not as large as
record proportions. The speculative movement in this country and the the liquidation of loans by nonbanking lenders, and total reported loans
consequent high rates for money were attracting funds from all parts of on securities declined further during the first half of 1930, bringing the
the United States and from abroad and were exerting a disturbing influ- net reduction for the nine months ended June 30 1930, to nearly $5,000,ence on business and credit conditions throughout the world.
000,000.
Rapid growth in the volume of loans made for speculative purposes
During the first week of heavy liquidation in the security market,
caused the Federal Reserve system as early as 1928 to adopt a firm when loans to brokers by member banks in New York City were sharply
money policy. This policy was expressed at first in permitting gold ex- increased to offset the withdrawal of funds from the market by noribank
ports, which were in larger volume at the time, to exert their customary lenders and out-of-town banks, there was a corresponding increase in
firming influence on credit conditions, and later in sales of United States member bank deposits, and consequently in the required reserves of
securities and in successive increases in discount rates from a level of member banks. With the passing of the speculative situation, however,
81
/
2% at the end of 1927 to 5% at the beginning of 1929, together with the Federal Reserve policy which, for about two years had been directed
increases in buying rates on acceptances. As a result of gold exports toward firm money, was reversed and became favorable to easier money
and open-market operations of the Reserve Banks, and notwithstanding conditions. During the week ended October 30 the Reserve Banks bought
the rise in discount rates, the volume of member bank discounts increased $150,000,000 of United States securities in the open market, reducing by
rapidly during the first half of 1928 and was close to a billion dollars that amount the need for additional member bank borrowing and so
during most of the following year, a volume not exceeded since the early facilitating the process of liquidation which was in progress. In Nopostwar years. In these circumstances money conditions became increas- vember and December the Reserve Banks made additional purchases of
ingly firm and there was a definite slackening in the growth of member securities. By the beginning of 1930 their security holdings amounted
bank credit, including loans extended by member banks to brokers and to about $500,000,000, compared to about $150,000,000 during the
dealers in securities. Continued growth in the demand for credit from summer of 1929. Subsequent purchases brought the total to about
the security market, however, was met by large increases in loans to $600,000,000 in September. Federal Reserve rates were also reduced.
brokers made by corporations and other nonbanking lenders. At the Beginning with the reduction in the discount rate at the New York Bank
beginning of 1929 it was evident that conditions leading to the adoption from 6% to 5% on November 1 1929, there were successive reductions
of the reserve system's firm money policy still continued. In February at all Reserve Banks, and by the end of September 1930, the rate was 8%
the Federal Reserve Board issued to the Reserve Banks and to the public at Boston, 214% at New York, and 31
/
2% at all other Reserve Banks.
a statement pointing out that in the prevailing circumstances the grant- Buying rates on acceptances were also reduced and on October 1 1930,
ing of additional security loans or the maintenance of a large volume ranged from 11
/
2% for maturities up to 75 days to 2/
1
2% for four to
of such loans by member banks that were heavily or continuously in debt six month bills.
to the Federal Reserve Banks constituted an improper use of Federal
The decline in money rates in this country in the autumn of 1929 had
Reserve facilities.
resu:ted in an outward movement of about $100,000,000 of gold before
During the spring of 1929 there was a reduction in the volume of the end of the year. Beginning in January, however, there was a net
member bank loans and investments, the decline representing a decrease inflow of gold, reflecting chiefly imports from South America and the
in loans on securities and in investment holdings, offset in a measure by Orient, and by the end of June the country's stock of gold was higher
a partly seasonal increase in so-called other loans. In June, however, by $200,000,000 than a year earlier. In July and August gold moved
loans on securities advanced again and so-called other loans continued to outward again, chiefly to France and Canada, but these gold exports did
increase.
not result in firmer conditions in the money market, since their effect
Renewed increase in speculative activity in the security market, after was counterbalanced in July by a decline in the domestic demand for
demands
reflected
in
further
the
spring,
was
temporary
slackening
in
the
currency and in August by open market purchases of securities by the
for funds to finance operations in securities, and by midsummer of 1929 Reserve Banks. In the autumn member bank indebtedness at the Reserve
money rates were at the highest level in more than seven years. The Banks, at a level below $200,000,000 showed a decrease of about $800,greatest increase occurred in open-market rates, and particularly in rates 000,000 from the year before.
for money used to finance stock market transactions. Open-market rates
Reflecting decline in the demand for credit in the security market and
/
2% higher also in the demand by trade and industry, together with an inflow of
/
2% in June were about 21
on time loans on securities at 8 to 81
/
2% were about gold from abroad and the easy money policy of the Federal Reserve System,
than a year earlier. Rates on bankers' acceptances at 51
11
/
2Vo above the level of the year before, and rates on commercial paper money rates in the summer and early autumn of 1930 were at the lowest
/
2% higher, while rates on bank loans to customers were levels of the post-war period. At the end of September the open market
at 6% were 11
on the average about one-half of 1% higher than a year earlier.
/
2%, and on prime commercial
rate on 90-day bankers' acceptances was 11
Attracted by the prevailing high level of money rates and by oppor- paper 3%, compared with 51
/
2%, respectively, a year earlier,
/
4% and 61
tunities for speculative profits, funds flowed into this country from and 2% and 3@81
/
2% at the low point in the middle of 1924. Open
abroad during most of 1929. This led to an inward movement of gold, market rates on time loans secured by stocks and bonds as collateral were
which added about $270,000,000 to the country's stock of monetary gold quoted at 21
/
2% a year before, and an average
/
2@2/
1
2%, compared to 9@91
between January and October of that year. The increase in gold stock of 2.6% for the last week of July 1924. Rates charged customers were,
was, however, not reflected in a reduction of member bank discounts at on the average, about 11
/
2% below the high point reached in October 1929,
the Reserve Banks, but was taken up largely in the liquidation of Reserve and at the lowest level since 1921.
Bank acceptance holdings, which carried a higher rate than discounts, and
Treasury Bills.
in part by further sales of United States securities by the Reserve Banks.
Reference has already been made in this report to the initial issue of
At the commencement of the agricultural harvesting and marketing
season, in July and August, Reserve Bank buying rates on acceptances Treasury bills as a part of the financing for the quarter beginning on
/
2% for various maturities to 5% for the Dec. 15 1929. Some discussion of this new type of short-term security was
were reduced from a level of 51
same maturities, and on August 9 the discount rate at the New York presented in my report for 1929, and the general circular fixing the
Reserve Bank was advanced from 5 to 6%. The establishment of lower terms of the bills and the conditions of their issue was included in that
rates on acceptances, as compared with the New York discount rate, en- report. On Dec. 10, in announcing the initial issue to be made on Dec. 16
couraged the sale of acceptances to the Reserve Banks as the season 1929, the following statement was made:
which are a new form
progressed and the volume of acceptances drawn and outstanding increased. ofThis offering will constitute the first issue of Treasury bills,last
Congress. While
security authorized by a law enacted by the
As a consequence, bill holdings of Reserve Banks increased more rapidly theGovernment
law authorizes the issuance of Treasury bills with a 12-month maturity, generally
than the seasonal demand for additional Reserve Bank credit, en that speaking they will be issued, as in the case of this offering, with a 90-day maturity
discounts for member banks in New York City declined and conditions or with a maturity not In excess of three months. Issued from time to time as the
current financial needs of the Government may dictate and with frequent and conIn the money market became easier.
venient maturities, they should furnish an attractive medium for short-term InvestDuring the last half of 1929 very marked changes occurred in the bust- ment. They are Intended to supplement rather than to supplant Treasury cernesa and credit situation. Industrial production, which had reached record tificates of Indebtedness, which, with maturities usually ranging from 6 to 12 months,
up to the present time constituted the principal medium of short-term
high levels at the middle of the year, commenced to decline in July. have
Government financing.
The outlook for corporation profits was adversely affected by continuing
Treasury bills offer certain advantages as compared with Treasury certificates.
evidence of decreasing business activity and actual reports of reduced Their issue can be timed to coincide almost exactly with the needs for funds as comon fixed dates through
earnings. In the security market, notwithstanding some easing in the pared with the existing practice of borrowing four times a year
certificate offerings; they will not be sold at par with an interest rate fixed by the
money situation, rates on collateral loans continued at a high level. Treasury but
at a discount rate fixed by the subscribers through competitive bidding;
Security prices commenced to decline in September. At the same time their maturities can be timed to correspond closely to the actual collection of income
the volume of loans to brokers continued to increase with exceptional taxes instead of falling on the nominal date of tax payment;and, finally, the Treasury
should be
to take advantage of periods of seasonal ease for short-term borrowing
rapidity, a fact which, in the face of declining security prices, was evi- Instead ofable
being compelled to offer a large Issue of securities during a temporary
dence of a movement of securities from holders with large equities to stringency and high money rates.
The Treasury Department believes that Treasury bills will prove lobe an efficient
holders with smaller equities, or from stronger into weaker hands. The
economical additional medium through which the short-term financing of the
position of the security market was further weakened by the occurrence and
Government may be conducted and hopes that they will receive a favorable recepof a conspicuous failure in the British market and by withdrawals of tion on the part of the public.
foreign funds from this country. On September 26 the Bank of England,
It will be recalled that under the Act approved June 17 1929, authorizfollowing recurrent declines in its reserves, increased its discount rate ing their issue, Treasury bills were exempt as to principal and interest
from 51
/
2% to 61
/
2%. These developments, coming at a time when from all taxation (except estate or inheritance taxes), but that gains
DEC. 6
1930.]
FINANCIAL CHRONICLE
3603
to call, but have fixed maturiThe Panama 2s likewise are now subject
1938. These three issues of 2%
ties, one series in 1936 and the other in
the United States bearing the
bonds are the only outstanding bonds of
1930 a total of $666,219,750,
so-called circulation privilege, and on June 30
outstanding, was on deposit with
of an aggregate total of $674,625,630
for the issue of circulating
the Treasurer of the United States as security
notes by National banks.
Debt Payment.
in the fiscal year 1920.
The reduction in the war debt commenced
beginning of that fiscal year
During the 11 full fiscal years from the
year on June 30 1930, more
on July 1 1919 to the close of the last fiscal
2%, or more
/
retired—about 361
than $9,296,000,000 of the public debt was
Congress provided for the
than one-third. It will be recalled that the
definite provisions—(1) the
liquidation of the war debt through two
n of any repayment of the
cetrulative sinking fund, and (2) the applicatio
the Liberty Bond Acts.
principal of loans to foreign governments under
for the execution of these two
Each year's budget makes full provision
the Congress has directed
basic provisions for debt payment. In addition,
to debt reduction, and has
the application of certain miscellaneous receipts
s of the United States
authorized the receipt of interest-bearing obligation
ts on account of principal or
for any amounts due from foreign governmen
authority has largely been
interest under the debt settlements, which
aggregate of the several accounts
availed of by foreign governments. The
debt reduction program,"
makes up what has been termed "the permanent
are chargeable against ordinary
and all expenditures for such accounts
of making early progress in
receipts. In recognition of the soundness
Cumulative Sinking Fund.
ss when prosperity and productive taxes
the reduction of war-time indebtedne
fund was as have yielded receipts in excess of expenditures, surplus receipts have also
For the fiscal year 1930 the appropriation for the sinking
outstanding debt. The following summary
been applied to the retirement of
follows:
disprincipal accounts through which the war debt has been
$29.18
the
shows
s
Unexpended balance from 1929
4.87 charged, with the percentage of each to the total retirement indicated:
°53,404,86
Initial credit
GROSS DEBT FROM JUNE 30 1919 TO
Secondary credit:
SUMMARY OF REDUCTION IN
JUNE 30 1930.
Derived from retirements prior to July 1 1930___5123,905,360.28
5,615,313.86
Derived from retirements during 1930
[On basis of daily statements (revised).1*
129,320,674.14
subject to income
from the sale or other disposition of Treasury bills were
matter, little or no
tax and losses were deductible. As a practical
Treasury bills. This
revenue could be realized from taxing gains on
all cases would
follows frein the fact that gains and losses in practically
ntial because of
offset each other and, in any case, would be inconseque
which their
within
the short term of the bills and the narrow range
required in order
prices fluctuate. Furthermore, the bookkeeping records
were so complito calculate gains, as differentiated from exempt interest,
situation was brought
cated that a very real sales resistance resulted. The
a corrective measure
to the attention of the Congress, which provided
provided that capital
through the Act approved June 17 1930. This Act
and that losses
taxation
gains on Treasury bills should be exempt from
law required a change
should not be deductible. This new provision of
a change in the
in the terms of Treasury bills thereafter to be issued and
on such bills. In
method of showing on tax returns the income received
t Circular No. 418
consequence of these changes an amended Departmen
1930, were issued.
and Treasury Decision 4292, both dated June 26
circular, which
Treasury Decision 4292 is incorporated in the amended
will be found as Exhibit 25 in this report.
were successfully
By the close of the last fiscal year Treasury bills
short-term financing;
established as one of the important means for
had been removed
and except for the disability just referred to, which
they were fully meeting
by the Act of Congress approved June 17 1930,
subsequently
offered
bills
the Treasury's expectations. Issues of Treasury
were subject to the untended law.
5382,925,568.19
P.C.
Amount.
Total, Including unexpended balance
16
In response to a public offer made on July 11 and closed on July
Gross debt outstanding:
$25,482,034,418.49
1929, Federal Reserve Banks purchased for the sinking fund, on tenders
June 30 1919
16,185,308,299.18
2% Treasury notes, Series A-1930/
June 30 1930
by holders, $75,864,950 face amount of 31
2%
/
of 41
$9,296,726,119.31
.1932, at 98 and accrued interest. In connection with the issue
reduction
Total
$100,000,000
nine-month certificates of indebtedness dated Sept. 16 1929,
2%, Treasury notes of the three outstanding series was Debt reduction:
/
face amount of 31
fixed price
at
a
receipt
through
Chargeable to ordinary receipts—
3,187,468,300.00 34.29
acquired for account of the sinking fund
Cumulative sinking fund
From time
of 98 and accrued interest in part payment for the certificates.
Received from foreign Governments:
at
00
$376,904,5
purchased
were
notes
Treasury
h%
31
principal
of
amounts
of
s
to time additional
Cash repayment
205,446,800
at a
Bonds, dtc., received as principal
the market, a total of $202,354,000 face amount being so acquired
906,369,150
Bonds, &c., received as interest
principal cost of $200,545,125, an average price of slightly over 99 3/32.
at 95 and
1,488,720,450.00 16.01
In addition, $150,000 face amount of first 4s were purchased
Total from foreign Governments
Miscellaneous:
Interest, and $10,000,000 face amount of fourth 414s were purchased,
Franchise tax receipts—
$2,500,000 at 98 26/32 and $7,500,000 at 98 30/32 and interest. Debt
$146,620,599.09
Federal Reserve banks
2,409,863.31
aggregating $388,368,950 in face amount accordingly was retired at a
Federal intermediate credit banks
66,171,200.00
Federal estate taxes
principal cost of $382,825,400.49.
15,224,281.75
Gifts, forfeitures, ,kc
2% Treasury Notes.
/
31
230,425,944.15 2.48
Total miscellaneous
the redemption on Mar. 15 1931
,694.15 52.78
$4,906,614
On Sept. 10 1930 a call was issued for
Total chargeable to ordinary receipts
2% Treasury notes of Series A-1930-1932 and Series
/
of all outstanding 31
Through reduction in general fund balance—
,935.26
in
51,226,164
notes
were
%
Treasury
issued
2
/
31
of
series
Balance June 30 1919
B-1930-1932. These two
312,782,915.03
second Liberty loan. Series A4930Balance June 30 1930
913,382,020.23 9.82
connection with the refunding of the
on Mar, 15 1927, in
issued
was
,450,
3,476.729,404.93 37.40
$1,360,456
amount
in
total
1932,
of receipts
surplus
From
and
Series B-1930-1932,
2% bonds,
/
exchange for second Liberty loan 41
$9,296,726,119.31 100.00
on Sept. 15 1927—$368,973,100
Total reduction
in total amount $619,495,700, was issued
and
600
bonds
%
against
$250,522,
2
/
41
loan
) appear in table 40
in exchange for second Liberty
*Figures on basis of daily Treasury statements (unrevlsed
five-year maturity, but was made
cash subscriptions. Each series carried a
page 592 [pamphlet report.)
on any interest-payment date on
subject to call, on six months' notice,
the annual interest charge,
Between June 30 1919 and June 30 1930,
issue. Series A, accordingly, became
and after three years from date of
interest-bearing debt outstanding on those
the
of
basis
the
on
15
Sept.
computed
1930.
Up
to
the
on
subject to call on Mar. 15, and Series B
to $606,000,000, or almost $450,been retired $711,380,100 of the dates, was reduced from $1,054,000,000
date of the call on Sept. 10 there had
the average rate was reduced from 4.178 on the former to
and
000,000,
B,
of
or
Series
an
000
$119,192,
aggregate
original issue of Series A and
effect on the budget of reduced charges
table summarizes the operations in 3.807% on the latter date. The
in interest through sinking
total of $830,572,100. The following
for interest is in part offset, since any reduction
the sinking fund appropriation
these securities:
fund retirements results in an increase in
being
Y NOTES OF 1930-1932. SERIES A in like amount, the amount in this respect as estimated for 1931
TRANSACTIONS IN 354% TREASUR
available appropriation of about $392,152,000.
TO SEPT. 10 1930.
total
a
ISSUE
of
010
OF
$138,747,
DATE
FROM
B,
AND
Amount.
Issued:
Condition of the Treasury.
$1,300,456,450
Series A, 1030-1932
the gross public debt of the United States Government
1930
0
30
619,495,70
June
On
Series B, 1930-1932
08,299, and the net balance (cash) in the general
$1,979,952,150 amounted to $16,185,3
statements (revised)
Total
fund of the Treasury on the basis of daily Treasury
decrease of $745,889,449 in
was $312,782,915. These figures represent a
Retired:
5366,614,150 the public debt, and a decrease of $11,723,936 in the net balance (cash)
Sinking fund
275,990,150 of the Treasury in the fiscal year 1930.
Payments from foreign Governments
30 1930, held
145,000,000
Bullion and coin amounting to $2,134,486,728 on June
Surplus receipts
42,967,800 in trust by the Treasury against United States currency outstanding, showed
Miscellaneous
$124,075,049 during the fiscal year. Bullion and coin,
5830.572,100 an increase of
trust by the
Total
amounting to $1,796,239,234 on June 30 1930, held in
increase of $233,813,655
Treasury for the Federal Reserve Board, showed an
Outstanding Sept. 10 1930:
$649,076,350 during the fiscal year.
Series A, 1030-1932
500,303,700
Series B, 1930-1932
General Fund of the Treasury.
51,149,380,050
otherwise authorized
Total
All cash receipts of the Government, except as
Series 0-19304932, was made on Jan. 16 by law, are credited to the general fund, and all expenditures are made
A third issue of similar notes,
$607,399,650, all in exchange for third Liberty therefrom. This fund shows the assets in the Treasury in the form of
1928, in total amount
part of the refunding of that loan. A total of casts and deposit credits and certain current liabilities set off against
a
as
bands
%
2
/
41
loan
These notes will mature on Dec. 15 such assets. The net balance of this fund represents the working cash
$451,722,450 remains outstanding.
redemption, on six months' notice, on any balance required in connection with the receipts and expenditures of the
1932, but may be called for
after Dec. 15 1930.
Government. The net change from the close of the previous fiscal year
interest-payment date on and
is accounted for as follows:
2% Consols of 1930.
FUND BALANCE
SUMMARY OF THE NET CHANGES IN THE GENERAL
were issued under authority of the Act
BETWEEN JUNE 30 1929 AND JUNE 30 1930, ON THE BASIS
The 2% Consols of 1030
OF DAILY TREASURY STATEMENTS (REVISED).
in refunding of certain other outstanding bonds
approved Mar. 14 1900,
Amount.
They were dated April 1 1900, and the law
at higher rates of interest.
per daily Treasury statement June 30
balance
be payable at the pleasure of the United States Net
8026,713,002.63
provided that they should
1929
date of their issue. The terms were fixed accord- Deduct net excess of expenditures over receipts in
after 30 years from the
2,206,151.80
an indeterminate maturity after April 1 1930.
June reports subsequently received
ingly and the bonds given
public statement was issued:
following
(revised)
$324,506,850.83
On Dec. 12 1929 the
Net balance June 30 1929over
expenditures chargeable against
inquiries received at the Treasury with respect to the 2% Excess of ordinary receipts
In view of the manyby
the Meal year 1930
in
the
at
receipts
pleasure
180.281,909.37
of
redeemable
are
the
ordinary
United
terms,
their
Consols of 1930 wilt h, Secretary Mellon to-day announced that these bonds would
States after April 11030.
60.20
be accounted for
to
the
$504,788,7
is
earliest
date
which
Total
1930,
the
2
option
April
on
redemption
not ,be called for
exercised.
reserved to the United States may be
3604
FINANCIAL CHRONICLE
Public debt retirements:
Amount.
Surplus revenue (this is additional to $553,883,603.25 sinking fund
and other debt retirements chargeable against ordinary receipts)$180,281,909.17
Reduction in net balance in general fund
11,723,935.80
Net balance per daily Treasury statement June 30
1930
$318,607,168.11
Deduct net excess of expenditures over receipts in
June reports subsequently received
5,824,253.08
Net balance June 30 1930 (revised)
312,782,915.03
Total
$504,788,760.20
GENERAL FUND OF THE TREASURY JUNE 30 1930 (Revised
Figures).
In Treasury offices:
Gold
$51,254,731.39
Standard silver dollars
6,599,227.00
United States notes
2,847,706.00
Federal Reserve notes
283,720.00
Federal Reserve bank notes
52,165.00
National bank notes
55,806.50
Subsidiary silver coin
5,233,513.12
Minor coins
4,177,685.07
Silver bullion (at cost)
6,622,158.31
Unclassified (collections, AC.)
869,693.92
$77,996,406.31
In Federal Reserve banks:
To credit of Treasurer of United States
$26,524,266.32
In transit
1,612,080.40
28,136,346.72
In special depositary banks: Account of sales of ctfs, of indebtedness 296,623,336.64
In general, limited and insular depositary banks:
To credit of Treasurer of United States
To credit of other Government officers
In transit
$6,957,078.78
18,914,649.48
1,455,539.23
27,327,267.47
In foreign depositary banks:
To credit of Treasurer of United States
To credit of other Government officers
In transit
$293,071.47
1,319,067.67
880,681.77
In treasury of Philippine Islands:
To credit of Treasurer of United States
In transit
$225,627.14
276.53
2,492,820.91
225,903.67
Total current assets
$432,802,081.72
Deduct current liabilities:
Fed'I Reserve note 5% fund (gold) $36,675,622.56
Less notes in process of redempt'n
1.442,350.00
National bank note 5% fund____ $28,226,376.32
Less notes in process of redempt'n 19,263,897.00
$312,782,915.03
•
Receipts.
Ordinary—
Customs
Internal revenue:
Income tax
Mace11. internal revenue
1930,
1931.
1932.
587,000,903.25
502,000,000.00
612,000,000.00
2,410,986,977.53 2,190,000,000.00 2,260,000,000.00
628,308,035.85 623,900,000.00 676,000,000.00
3,039,295,013.38 2,813,000,000.00 2,936,000,000.00
Miscellaneous receipts:
Proceeds of Govt.-owned sees.:
Foreign obligations—
Principal
97.634,287.76
Interest
141,931,519.26
Railroad securities
11,485,514.81
All other securities
8,785,657.61
Proceeds sale of surplus prop'y
15,830,586.97
Panama Canal tolls, bcc
28,253,127.75
Other miscellaneous
247,725,091.20
551,645,785.36
Total ordinary receipts
Total
Interest on public debt
Refunds of receipts:
Customs
Internal revenue
Postal deficiency
Panama Canal
Operations in special accounts:
Railroads
War Finance Corp
Shipping Board
Agricultural marketing loan
fund (net)
Alien property funds
Adjusted service certif. fund
Civil service retirement and
disability fund
Investment of trust funds:
Govt. life insurance fund
District of Columbia teachers'
retirement fund
Foreign service retirem't fund
General railroad contingent
fund
51,597,841.00
62,349,946.00
184,531,210.00 184,260,434.00
3,559,907.00
8,924,390.00
10,018,918.00
10,532,268.00
15,126,512.00
15,302,075.00
27.655,435.00
27,648,000.00
227.375,420.00 228,101,814.00
519,865,243.00
537,119,927.00
4,177,941.701.99 3,834,865,243.00 4,085,119,927.00
Expenditures.
Ordinary (Checks and Warran isPaid, &e.)General expenditures:
Legislative establishment
19,986.820.64
Executive proper
690,263.00
State Department
14,170,408.87
Treasury Department
0193.114,012.63
War Department
8453,524,973.41
Department of Justice
c32,483,080.31
Post Office Department
58,198.91
Navy Department
374,165,638.55
Department
Interior
d290,027,905.76
Department of Agriculture
177,580,581.10
Department of Commerce__ _
54,299.106.12
Department of Labor
10,654,405.63
Veterans' Administration_ _ _ 6.446,955,630.33
and
independent
offices
Other
commissions
49,495,746.47
District of Columbia
45,079,613.67
$35,233,272.56
120,019,166.69
Balance in Treasury June 30 1930
•
•
RECEIPTS AND EXPENDITURES FOR THE FISCAL YEAR
1930, ON
THE BASIS OF DAILY TREASURY STATEMENTS (17NREVISED),
AND ESTIMATED RECEIPTS AND EXPENDITURES FOR
THE FISCAL YEARS 1931 AND 1932.
Total
Add unclassified items
8,962,479.32
Treasurer's checks outstanding
645,381.46
Post Office Department balance
9.846,556.48
Board of trustees, postal savings system, balances 9,142,427.03
Balance to credit of postmasters, &a
Retirement of additional circulating notes (Act of 54,463,085.01
May 30 1908)
1,900.00
Uncollected items, exchanges, 1.,c
1,724,064.83
[VOL. 131.
30,554,100.00
417,200.00
16,488,100.00
263,249,700.00
477.074.600.00
45,946,700.00
75,000.00
374,627,500.00
77,815,500.00
203,814,900.00
61,430,200.00
11,899,800.00
748,242,600.00
28,733,700.00
468,700.00
16,460,100.00
240,152,300.00
452,851,100.00
51,311,500.00
75,000.00
375,555,000.00
87,195,600.00
229,162.900.00
54,825,400.00
13,408,500.00
789,623,100.00
53,861.900.00
46,859,900.00
60,049,600.00
46,750,000.00
2,162,286,385.40 2,412,357,700.00 2,446,622,500.00
422.550.04
2,162,708,935.44 2,412,357,700.00 2,446,622,500.00
1659,347,613.07 603,000,000.00 581,000.000.00
24,091,809.24
133,852,182.70
91,714,450.89
11,328,541.69
20,265,500.00
98,511,000.00
111,202,200.00
11,697,300.00
84,795,787.55
058,838.54
31,695,169.06
01,460,000.00
050,000.00
47,585,000.00
149,958,273.55
968,985.50
8112,312,726.75
100,000,000.00
0500m0.00
112,000,000.00
20,815,500.00
96,531,500.00
114,041,000.00
11,905,700.00
76,450,000.00
75,000,000.00
0500,000.00
112,000,000.00
Corporate and Individual Incomes.
820,433,867.39
20,850,000.00
20,850,000.00
Income tax receipts during the fiscal year 1930, as already noted, were
43,469,104.81
35,621,200.00
27,888,100.00
dependent chiefly upon incomes reported for the calendar years 1928 and
1929. Incomes for the latter year also underlie collections during the
516,706.13
640,000.00
690,000.00
(313,282.13
first half of the fiscal year 1931, collections for the last half of that
216,000.00
215,000.00
fiscal year being determined chiefly by incomes for 1930.
2,411,871.58
2,500,000.00
2,500,000.00
Both corporate and individual taxable incomes were unusually large in
Total ordinary expenditures_ 3,440,268,883.84 3,574,435.900.00 3,586,009,300.00
1928. The taxable net income of corporations reporting net income for
1928 was about 17% larger than for the preceding year, larger, in fact, Public debt retirements chargethan for any other post-war year. Individual net income showed an
able against ordinary receipts:
Sinking fund
388,368,950.00 391,660,000.00 409,410,600.00
increase of about 12% in 1928 as compared with 1927, and was larger
Purchase from foreign repaythan for any other year on record.
ments
51,135,000.00
48,246,000.00
57,749.300.00
Complete data from income tax returns for the calendar year 1929 are
Received from foreign Coots.
under debt settlements—
109,790,850.00
not yet available, but tax collections indicate that the taxable net
Received from estate taxes_ _
73,100.00
Incomes of corporations were about 9% larger for 1929 than the amount
Purchases from franchise tax
reported for 1928. The indicated increase in taxable incomes is !mailer
receipts (Federal Reserve
banks and Federal interthan that shown by the available published earnings reports of corporations.
mediate credit banks)
4,455,000.00
400,000.00
1,150,000.00
Figures for a sample of corporations publishing earnings reports, combined
Forfeitures, gifts, dee
60,703.25
200,000.00
200,000.00
and weighted according to their probable relationship to all the corporaTotal
553,883,603.25 440,506.000.00 468,509,900.00
tions reporting net income for tax purposes, show an increase in net income
of over 19% for the calendar year 1929 compared to 1928.
Total expenditures chargeThe combined published reports of these corporations for the first
able against ordinary recta 3,904,152,487.09 4,014,941,900.00 4,054,519,200.00
three-quarters of the calendar year 1930 show marked decreases from
of ordinary receipts over
the first three-quarters of 1929. It should be noted again that these Excess
total expenditures chargeable
figures are only in a general way indicative of the corporate incomes
agst. ordinary rects.(see note)- 183,789,214.90
30,600,727.00
reported for tax purposes, since they are based on a small and, in sane Excess of expenditures chargeable
against
ordinary
receipts
unrepresentative
respects, an
group of corporations, and since statutory
over ordinary recta. (see note)
180.076,657.00
net income reported for tax purposes frequently differs materially from
Note.—If trust fund receipts and expenditures are excluded on the basis of figures
published net income. Nevertheless, the published net income figures
used in the budget, the surplus for the fiscal year 1930 would be $186,480.561.44
provide a valuable indication of the direction of change and, to a limited for 1931
the estimated deficit, $178,995,657; and for 1932 the estimated surplus.
ext.nt, evidence of the magnitude of change in taxable corporation income. $30,685,281.
According to the avilable information, the incomes for the calendar
a See note e. b See note e. c Since July 1 1930 figures opposite the caption
year 1929 reported by individuals for tax purposes were smaller than those "Department of Justice" include expenditures on account of the Bureau of Prohibition. Prior to that date such payment swere included under the caption
reported for the calendar year 1928. Conditions during the first three- "Treasury
Department." d See note e. e Prior to Aug. 1 1930 figures opposite
quarters of 1930, particularly in the security market, indicate that these the caption "Veterans' Administration" represent
payments made for account of
Incomes will be still mailer for 1930. It may be noted, however, that the Veterans' Bureau only. After that date they include payments for account of
Veterans' Bureau and also those of the character formerly made by the Bureau
dividend and interest disbursements, which constitute an important item the
of Pensions and for account of the National Homes for Disabled Volunteer Soldiers
of individual taxable income, increased during 1929, and that this increase previously included under Interior Department and War Department, respectively,
Include $523,090.98 accrued discount on war savings securities of matured series.
apparently continued during the first half of 1930. Since then, however,
Excess credits, deduct. h The difference between amounts of above charges
disbursements of dividends appear to have declined as compared with 1929. and
amounts appropriated are due to working balances required for use in making
authorized payments from the fund. Receipts on account of this fund are credited
Estimates of Receipts and Expenditures.
against expenditures.
Includes $216,000 on account of appropriation from the
general fund and $97,282.13 on account of salary deductions and earnings. Be-The following table presents ordinary receipts and expenditures charge- ginning with the
fiscal year 1931 this item will represent only the amount approable against ordinary receipts for the fiscal year 1930, on the basis of priated from the general fund, the receipt from deductions and earnings being used
daily Treasury statements (unrevised), with corresponding estimates for as credits against (deductions from) expenditures.
the fiscal years 1931 and 1932. Ordinary receipts include all receipts
The present estimate of total ordinary receipts for 1931, at $3,834,other than those arising from public, debt transactions. Ordinary expendi- 865,243, is nearly $400,000,000 smaller than the one which was submitted
tures exclude all expenditures for the retirement of the public debt. Ex- to Congress in my previous annual report. The earlier estimate did not
penditures chargeable aginst ordinary receipts include ordinary expendi- take into consideration the 1% income tax reduction and was made at
a
tures and the retirements of the public debt from the sinking fund and time when it was impossible to appraise the severity of the business defrom special receipts described in detail on pages 68 to 61. (Pamphlet re- pression then in its early stages. Reduction
in that estimate was made
port) Expenditures chargeable against ordinary receipts do not include necessary by subsequent developments in industry and commerce, as well
retirements of the public debt from the surplus and from a reduction in as in the security market, which indicated that both corporation
and
the general fund balance. The estimates in the table are on the basis of Individual incomes would be smaller
than had been anticipated; and by
the latest information received from the Bureau of the Budget:
the effect of such developments on the volume of foreign trade and the
DEC. 6 1930.]
FINANCIAL CHRONICLE
customs receipts. Exclusive of the $80,000,000 tax reduction item the
principal reductions in estimated receipts are as follows: income tax,
$190,000,000, and customs, $100,000,000.
it will be observed that in both the fiscal years 1931 and 1932 interest
received from foreign governments on account of their obligations to the
United States, funded in accordance with the debt settlement agreements,
is treated as general fund receipts available for current expenditures.,
including interest on our own debt. The Liberty Bond Acts, under the
terms of which funds were advanced to those associated with us in the
World War, provide that all repayments on account of principal should
be applied to the reduction of our public debt. No similar provision was
made covering interest payments. The various debt settlement agreements
provide that if the debtors so elect, both principal and interest payments
may be mude in securities of the United States issued since April 6 1917,
with the exception of unmatured Treasury bills, such securities to be
accepted at par and accrued interest. When any United States Government
securities may be acquired at a discount, it is obviously to the advantage
of our foreign debtors to acquire these securities and make payment therewith at par; whereas, when the United States Government securities may
not be acquired except at a premium, it is equally obvious that it is to
their advantage to pay in cash. Up to the last fiscal year the privilege
of paying in securities was availed of to a very large extent. When these
securities were received by the Treasury Department they were cancelled
and automatically retired and the public debt reduced accordingly. Inasmuch as during the entire period since the debt settlements were effected
the Government has closed each fiscal year with an ample surplus, as a
practical matter it was immaterial whether foreign interest payments were
ear-marked for debt retirement or treated as available for current expenditues. As a matter of fact, when paid in securities they have been Hated
as public debt retirements chargeable against ordinary receipts. But had
they not been so treated, they would simply have served to increase the
surplus, and, since the surfilus was applied to debt retirement, they would
in either event have been applied to the reduction of the public debt.
When interest has been received in cash, it has automatically been
available for current expenditures. When interest has been received in
securities, the Treasury up to the present time has automatically diminished
the debt by that amount The securities once received could not be reissued,
and the amounts were not needed for current use in a period of ample
revenues and annual surpluses. The policy consistently pursued by the
Treasury Department has been to reduce our war debt as rapidly as possible
in days of plenty. This, of course, implied as a corollary that in periods
of depression, when the Government revenue is restricted, the rate of debt
reduction should be slowed up, but not to the extent of infringing on the
statutory requirements.
In so far as the fiscal year 1931 is concerned, it is reasonably certain
that December interest payments on account of foreign debts will be paid
in cash, and it is quite possible that this may be equally true in June.
So far as the fiscal year 1932 is concerned, it is impossible to forecast
what method of payment foreign debtors will elect, though it is entirely
possible that part of the interest payments will be made in securities.
Should this be done, the se2urities received must, as a practical matter,
be cancelled and retired; however, should the current cash requirements
of the Government require the issuance of an equivalent amount of new
securities this equivalent amount should not be looked upon as indicating
an increase in the public debt or an unbalanced budget.
Income Taxation.
In recommending last year a 1% decrease in the normal tax rate
applied to individual and corporation incomes for the calendar year 1929,
the Treasury pointed out that whether the decrease could be continued or
not would depend entirely upon the revenue prospects at the time the
Congress met in December 1930. It was stated that under the circumstances
prevailing at the time, "while a surplus jestifies some measure of tax
relief and while the taxpayer should receive the fullest possible benefits
from the prosperous condition of the Treasury during the given fiscal
year, it is impossible to assure the permanency of the reduced rates."
The above stated estimates of receipts and expenditures indicate that
the temporary decrease cannot be continued during the current year.
The budget for the fiscal year 1932 is barely balanced, while during the
fiscal year 1931 it is now estimated that expendimres will exceed current
receipts by about $180,000,000. This anticipated deficit may be covered
in part at least by drawing on the general fund balance.
'Secretary Mellon also devotes a portion of his report to
branch, group, and chain banking, and under this heading
says:
The area in which branch banking existed on June 30 1930 comprised
the District of Columbia and all States except Colorado, Connecticut,
New
Florida, Idaho, Illinois, Iowa, Kansas, Missouri, Montana, Nevada,
establishMexico, Texas, Utah, and West Virginia, in which States the
South
ment of branch offices is prohibited, and North Dakota, Oklahoma,
has
Dakota, and Wyoming, where no legislation respecting branch banking
States
the
of
some
been enacted. Very few branches existed, however, in
had a
included in the branch banking area; in fact, four of the States
one
total of only seven branches. Moreover, in eight of the States in which
or more branches were in operation in June 1930—Alabama, Arkansas,
Indiana, Minnesota, Nebraska, Oregon, Washington, and Wisconsin—the
establishment of additional branches is prohibited. State-wide branch
banking is permitted in 10 States: Arizona, California, Delaware, District
of Columbia, Maryland, North Carolina, Rhode Island, South Carolina,
Vermont, and Virginia.
Problems raised by the recent increase in the number of branch, group,
and chain banking organizations are now the subject of investigation.
broad
During the past year a committee of Congress has conducted a
banking
Inquiry of the subject, obtaining testimony from many leading
authorities. The subject is also being studied by the Comptroller of the
by
Currency and by the Federal Reserve Board. These and investigations
by
various private groups, should provide a valuable fund of information
of
which to judge the relative advantages and limitations of various forms
banking organizations, and should indicate the character of such legislative
measures as may be necessary to insure the orderly development of our
and
banking structure along the lines best suited to meet the varying
of the
expanding needs of the country's industry and commerce. In view
system
great importance to the nation of a strong and efficient banking
as the
organized to provide for the requirements of the smallest as well
the
governing
legislation
regarding
largest users of credit, commitments
operation of branch, group, and chain systems should await the completion
of investigations now in progress.
The following is also taken from the report:
Securities Markets and Interest Rates.
of the
It was pointed out in my last annual report that, in view
developments in the money market, the Federal Land Banks had endeavored
high
at
long-term bonds
to avoid in so far as possible the issuance of
primarily
rates of interest and to meet their requirements for loan funds
such temporary
through repayments and installment payments on loans and
has been
financing as seemed to be desirable and necessary. This policy
$20,700,000 of
continued during the past fiscal year. Out of a total of
the balance,
bands issued, $2,450,000 represented long-term financing. Of
made in October 1929.
one short-term issue of $9,500,000 of 5% bonds was
issued, all
414%
were
bonds
short-term
In February 1930 $8,750,000 of
the February
of the October issue having been either retired or refunded by
sufficient
issue. As previously indicated, the repayments on loans were
in this
to meet the major requirements of the Federal Land Banks
their
connection. During the fiscal year, seven of the banks advanced
By the
5%%.
interest rate on loans to 6%, the other five remaining at
51
to
again
rate
end of the year, however, five had reduced their
The unsatisfactory conditions that prevailed in the general bond market
In
extended, of course, to the bonds of the Joint Stock Land Banks.
by the
addition, the market for the latter securities has been depressed
fact that three of the banks had been placed in the hands of receivers,
Land
which tended to affect adversely securities issued by Joint Stock
by
Banks, notwithstanding the fact that each bank should be considered
Land
investors on its individual merits. During the year, Joint Stock
longBanks issued bonds aggregating $3,310,000, all of which represented
41
term financing. Of the total, $1,050,000 carried an interest rate of
loans
The
5%.
$1,000,000 a rate of 4%%, and the balance a rate of
of most of the banks were made at 6%.
debentures
During the year the Federal Intermediate Credit Banks issued
issued in any
aggregating $163,105,000. This was the largest amount
of their
year in their history, and reflected the increase in the volume
maturities of these
business referred to above. Both the interest rates and
rate
interest
The
conditions.
securities were affected by money market
5.22%, the highest
on the debentures issued during October 1929 averaged
monthly average during the fiscal year. After that the rates declined
only 3.30%.
steadily, arriving at a low point in June, when the average was
3%,
During that month one $2,000,000 issue of debentures was placed at
a 3%
carried
have
and since the close of the fiscal year the debentures
market
money
in
changes
the
reflected
interest rate. Maturities likewise
conditions, the maturities tending to be shorter in October, when the
average was about 314 months, but increasing thereafter until they
funds
reached an average of 5.9 months in June. The decline in cost of
lowering in
in the latter part of the year, of course, was followed by a
the rates of interest on both loans and discounts.
Branch, Group, and Chain Banking.
In my last annual report I referred to the recent growth in branch and
group banking, to the influences which lie back of this growth, and to
the need for thorough study of the situation. Active investigation of the
subject is now in progress.
The status of branch operating and multiple banking systems at the
present time is indicated by data compiled by the Federal Reserve Board.
According to the Board's statistics, on June 30 1930, 817 of the 23,852
banks of all classes• in the country were operating 8,618 branch offices,
as compared to 818 banks with 3,440 branches at the end of June 1929.
On the same date 2,144 banks were reported as affiliated in chain or group
systems, as against 1,802 so reported a year earlier. Although the
number of branch bank systems decreased by one during the year 1930,
68 banks which were previously non-branch operating organizations established branches. This addition to the number of branch operating banks
was offset mainly by decreases resulting from mergers and auspensions.
The banks that were operating branches at the end of June 1930 included
165 National banks with a total of 1,041 branches; 169 State member
banks of the Federal Reserve System with 1,358 branches, and 483 nonmember banks with 1,269 branches.
The loans and investments of branch operating banks aggregated $25,161,000,000 on June 30 1930, or about 43% of the loans and investments
of all banks in the country, which totaled $58,108,000,000 on that date.
Branch operating banks numbering 675, with loans and investments of
about $20,613,000,000, were located in States which permit branches only
in the city in which the parent bank is located or In contiguous or immediately adjoining territory, while 218 t branch operating banks with loans
and investments of about $4,047,000,000 were reported from banks in the
nine States and the District of Columbia which permit State-wide branch
banking.
•Exclusive of private banks not under State supervision.
t Of the remaining branch-operating banks, 23 were In States where the establishment of new branches is prohibited, and 1 was In New Hampshire where State
legislation contains no provision relating to branch banking.
3605
4%.
4%,
Relations with the Federal Farm Board.
During the past year the Federal Farm Loan Board and the 12 Federal
Board
Intermediate Credit Banks have co-operated with the Federal Farm
Federal
in the conduct of their respective loaning operations. Each of the
Intermediate Credit Banks executed a memorandum of understanding with
informathe Federal Farm Board providing, In general, for an exchange of
banks
tion relating to co-operative marketing associations assembled by the
Farm
Board
the
or the Federal Farm Board, and for making available to
banks,
therefore,
The
the facilities of the banks for the closing of its loans.
is able
afford a medium through which the Federal Farm Board frequently
to obtain necessary documents, credit information, advice as to provisions of
banks
local State laws, and other matters. When requested to do so, the
Federal Farmalso hold notes or other documents for the account of the
funds
disburse
Board, and, when authorized, they receive collections and
for the same account. Through the co-operative marketing associations the
Federal Farm Board has aided in establishing agricultural credit corporations which make loans to individual farmers, rediscounting the paper with
the Federal intermediate credit banks. One of the difficulties experienced
agriculby the banks in extending their facilities to meet the demands of
with adequate
ture has been the lack of sufficient financing institutions
capital to handle the financing of individual farmers. The establishment of
credit corporations with a sufficient paid-in capital to enable them to function properly will permit a substantially greater amount of credit to be
extended by the banks.
Receiverships of Three Joint Stock Land Banks.
The three joint stock lands banks in receivership have required much
of the time and thought of the board. In connection with the receiverships at Kansas City and Milwaukee, negotiations have been carried on by
the bondholders' and stockholders' committees looking to the development
of plans for terminating the receiverships through reorganization or otherwise, and numerous conferences have been held. In the ease of the Kansa*
3606
FINANCIAL CHRONICLE
[VOL. 131.
City receivership these negotiations have resulted in a definite proposal by all necessary powers, on a basis comparable to
those of the Comptroller of
A. 0. Stewart, of San Francisco, which has been embodied in a plan the Currency in national bank receiverships.
Such a bill (S. 3444) passed
adopted by the bondholders' protective committee and approved by the the Senate and a corresponding bill in the
House of Representatives (H. R.
stockholders' protective committee, which is to become operative if 95% 9433) was reported favorably by the House
Committee on Banking and
of the bondholders, or such less number as may be acceptable to Mr. Currency with an amendment which was satisfactory
to the Board. These
Stewart, agree. The Board has indicated that a reorganization pursuant to bills now await action in the House of Representatives.
this plan, or any satisfactory modification, will meet with its approval.
Legislation.
The plan contemplates the formation of a strong new Joint Stock land bank
with Missouri and Kansas as its loan territory, and that the assets of the
During the past fiscal year two amendments were added to the Federal
present bank which are not to be used for the purpose of creating the Farm Loan Act. Both were signed by the
President on June 26 1930, just
new Joint Stock Land Bank shall go into a separate liquidation corporation. at the close of the second session of the Seventy-first
Congress.
The plan has been published and distributed and is now under consideration
Early in January 1930, in soy reply to a request from the Chairman of
by the bondholders. It has not appeared to be feasible to develop any plan the Senate Committee on Banking and Currency
for an expression of the
for the reorganization or early liquidation of the Ohio Joint Stock Land views of the Treasury Department regarding a proposed
bill, it was stated,
Bank which, however, has only a relatively small amount of assets.
in part, ". . . the suggestion has been made that it would be reasonOne liquidating dividend from the proceeds of pledged assets of the able in the public interest to limit the assessments made
against the banks
Bankers Joint Stock Land Bank of Milwaukee, amounting to 15% of the under section 3 of the Federal Farm Loan Act to the
salaries and expenses
principal of the outstanding bonds of the bank as of July 1 1927, and the of the employees of the Federal Farm Loan Bureau
engaged in its division
accrued unpaid interest thereon to that date, has been declared, and since of examinations. This view of the matter appeals to
the Federal Farm Loan
then the receiver has accumulated a sufficient amount of additional cash, Board and this Department as meriting the favorable
consideration of the
which has been invested in Government securities, to enable the payment of Congress . . ." It was further explained that
the expenses of the
another dividend whenever the situation with respect to the powers of the employees engaged in the divisions of examinations
approximated 42% of
board or the development of plans for the liquidation of the bank through the total expenses of the Farm Loan Bureau.
a sale of its assets has been clarified. Two liquidating dividends of 10%
Following this suggestion a bill (S. 4028) was introduced during March,
each of the amount of the principal of the bonds outstanding of the Ohio providing that beginning July 1 1930, and
thereafter, the assessments to
Joint Stock Land Bank as of September 1 1927, and the accrued unpaid be made under section 3 of the Farm Loan Act
against the banks of the
Interest thereon to that date, have been declared, and the declaration of system, should be the amount of the
"expenses and salaries of the emfurther dividends is likewise being held in abeyance.
ployees engaged in the work of the division of examinations of the Federal
The receivers are liquidating the assets in their control in an orderly Farm Loan Bureau." This bill was accepted by
both Rouses and signed
way without sacrifice of their value, and substantial progress is being made by the President, as indicated above.
in that direction, but, e course, without the intervention of acceptable plans
The second amendment to the Farm Loan Act came as a result of a bill
for the sale of the assets of these banks in bulk, the process necessarily introduced during April 1930. This bill (S.
4287) provided for two changes,
will consume many years.
as follows:
Since June 30 1929, previous reports by the receivers have been supple(I) It permits the Federal Intermediate Credit Banks to make loans
or advances
mented by reports published as follows: Kansas City, January 31 1930; direct to eligible financing organizations, which formerly
were
only the
Milwaukee, August 31 1929, and December 31 1929; and Ohio, December rediscount privilege with these banks. As stated in my letterpermitted
to the Chairman
of
the
Senate
Committee
on Banking and Currency regarding this feature of the
31 1929. The board has continued its practice of including in its quar- bill,
it WRS "the view of the Federal Farm Loan Board that such an
amendment
terly printed publication and in its annual report periodical statements of would simplify and facilitate the business transactions
of the Federal Intermediate
the condition of the banks as reported by the receivers upon the basis of Credit Banks with eligible financing institutions without in any respect
departing
from the fundamental purpose of the law, as it would permit Federal
their books.
Intermediate
Credit Banks to accept as security for the bills payable of such institutions
the
A material factor in the situation affecting the administration of the same paper that may now be discounted
or purchased."
three receiverships has been the litigation involving the power of the Fed(2) The second provision of the bill permits the Federal Intermediate Credit
Banks
to
make loans and to discount paper, under the conditions stated in the
eral Farm Loan Board and its receivers to enforce the statutory double lialaw, having maturity of less than six months, which was formerly the minimum.
bility of stockholders created by the Federal farm loan act. This litigation The removala of
this limitation seemed desirable, since in the course of orderly
resulted in a decision of the Supreme Court of the United States on Novem- marketing co-operative marketing associations usually require
commodity credit
ber 4 1929 (Wheeler v. Greene, receiver of the Bankers Joint Stock Land for shorter periods than six months, as well as for periods extending beyond six
months. Other agencies, country banks, agricultural credit corporations ,and
Bank of Milwaukee, 280 U. S. 49), that such power was not possessed by livestock
loan companies eligible to do business with the Federal Intermediate
the board and its receiver, but that the statuory double liability "is a lia- Credit Banks also find it desirable
at times to discount agricultural paper which
bility to creditors which the creditors may be left to enforce." As a result has a maturity at the time of discount of less than six months. In the circumbondholders of all three banks instituted proceedings in court to enforce stances, the removal of the 6-month limitation. It Is believed, makes it possible
for the
to serve the needs of marketing and production credit more satisthe liability. Prior to this decision it had been the belief of the board, factorilybanks
and adequately without departing from or Impairing the fundamental
supported by three unanimous decisions of the circuit courts of appeals
purposes
of
the
system. This bill was likewise accepted by both Houses and became
of effective June 26
1930, upon signature by the President.
the seventh and eighth circuits, that the duty to enforce this liability
devolved upon the board under the Federal Farm Loan Act. The decision
Attention is invited to the attached reports of the various bureaus and
of
the Supreme Court made it apparent that it was desirable to obtain a clari- divisions of the Treasury Department and to the exhibits and tables accomfication of the powers of the Board in order to permit it to proceed with
panying the report on the finances.
the liquidation of the receiverships in a satisfactory manner. Accordingly,
A. W. MELLON,
the Board and the Secretary of the Treasury recommended to the Congress
Secretary of the Treasury.
the enactment of a bill which would make it clear that the Board possessed
To the Speaker of the House of Representatives.
Indications of Business Activityl
THE STATE OF TRADE—COMMERCIAL EPITOME. And as usual on the approach of the
Christmas holidays
Friday Night, Dec. 5 1930.
there is some increase in the jewelry business. There is a
It cannot be said that trade has greatly improved. The fair to good trade in radio lines but it was
noted that the
burden of the reports for the most part is to the effect that demand is chiefly for moderate priced
sets. Some of the
trade at best is fair and in many cases is still quiet. In automobile companies are increasing their
output and with
other words there is no real improvement. The cold weather it are employing more hands,but the November
production
has helped retail trade to some extent, but industries on the in the United States and Canada amounted
to only 146,185
whole are quieter as usual towards the end of the year. This cars and trucks against 154,585 in
October and 226,997 in
applies to steel, iron, automobiles and lumber, to go no November 1929. For 11 months the total
is approximately
further, though it also might include textiles of one kind or 3,361,217 against it must be added 5,496,213
in the same
another. There is an attempt to put up prices of steel $1 months of 1929. In other words hard
times have affected
a ton for delivery in the first quarter of 1931, and there is luxuries, and one of the signs to that effect is that the
autosaid to be quite a large potential demand for rails. The mobile trade has plainly suffered. Bank clearings
still
fact remains that railroad buying of rails is hardly as large make a poorer exhibit than that of a year ago.
as it was a year ago. It is said that the steel ingot producWheat advanced 2 cents in spite of the fact that the
tion is below 40%. The coal trade has improved on account trade has been slow. But on the other hand the Farm export
Board
of the more seasonable weather. The most cheerful reports has apparently been ready to lend support to prices
and it
about trade come from the North and Northwest. Mail- was also worthy of notice that Russian exports to
Western
order business shows a distinct falling off, and perhaps it is Europe have fallen off noticeably. There may yet
be a
one of the signs of the times that attempts are being made to chance for an export trade in American wheat, but it
must
merge the two biggest mail-order concerns in this country, be confessed that American prices are on a high level
under
presumably for greater economy of operations, and added the "protection" of the Farm Board and before long
the
ability to meet competition. Copper has sold somewhat Southern Hemisphere will enter the market and
endeavor
more freely at 113i to 113.c. The mill takings of raw silk to capture the export trade to Europe. Corn has also
adare said to be larger. Bank suspensions continue at the vanced with a large feeding demand and higher prices
paid
South and some parts of the Central West and of course in the interior than are quoted at the big terminal
markets.
have a more or less depressing effect on both wholesale The receipts of corn moreover have been generally
small
and retail trade. One of the latest is said to have been a though to-day there were signs of an increase which
had
well-known bank at Charlotte, N. C. On the other hand some noticeable effect on prices. Other grain has
advanced,
some of the Southern banks which recently closed have been notably rye so long under a cloud, but which this week
has
opening up under a pledge by depositors not to call for their advanced 4 to 9 cents under the stimulus of bad crop
reports,
money for some several months to come.
small deliveries on December contracts and a sharper
Naturally with colder weather at the West and Northwest partly from shorts. Some Canadian flax has been demand
sold for
there has been a better demand for heavy winter clothing. export for the third or fourth time of late and
for the first
DEC. 6 1930.]
FINANCIAL CHRONICLE
3607
nights a week. At Remerton, Ga.
year in many years. Sugar has changed very little awaiting ning four days and four
have sold the output until next
Mills
Cotton
Strickland
the
joining
definite information as to what Java will do about
its working force and is now
doubled
has
plant
the
March;
exports.
and
production
regulate
to
scheme
a
Cuba in
and night schedule. This
day
per
-hour
24
a
on
operating
Sanos
on
60
to
30
and
Coffee declined 10 to 15 points on Rio
sheetings. It is also understood that the
with increased pressure of cost and freight coffee and an plant manufactures
way for expanding the plant, due
evident desire on the part of Brazil to sell. It is an open company has plans under
orders.
recent
do
will
to
t
question just what the new Brazilian Governmen
At Cartersville, Ga. the Cartersville Mills, the Goodyear
about attempting to stabilize coffee prices. All thatis known
Mills No. 1 at Cedartown and the Mills No. 2 at
Clearwater
sell.
to
pressure
evident
an
is that at present there is
resume practically a full time operating schedwill
Rockmart
Both Brazilian and European markets have declined, to
in December and this schedule would be
week
first
the
ule
20
to
10
advanced
Rubber
York.
New
of
nothing
say
the year. At Knoxville, Tenn. 200
throughout
maintained
Malayan
in
off
falling
points partly because of a noticeable
off by the Hall-Tate Clothing Co.
laid
were
who
exports in November. Hides declined 15 to 30 points, with employees
St. Louis wired that industrial
work.
to
back
put
been
have
times.
heavy selling at
to report rather spotty
continued
concerns
commercial
and
no
Cotton has declined only slightly, for there has been
without any palpable evidence of a
pressure to sell and the co-operatives have continued to buy conditions in that section
better in general conditions. Retail trade
October. Moreover, hedge selling has slackened, the price turn for the
approach of the holidays but it is said that
the
on
quickened
is already low, the bearish statistics are an old story, and
large stores are smaller than ever before at
of
inventories
the
that
a
is
belief
There
supposed.
is
it
pretty well discounted
reported business still only fair. ReDetroit
season.
this
even though only gradually the textile trades are improving.
were unseasonable and retarded
conditions
weather
The bulk of the private crop estimates have been smaller cent
reduced buying power. The
with
coupled
buying,
retail
year.
last
of
that
and
than the bureau's total last month
shifted into second speed,
yet
not
has
industry
automobile
Cotton goods have declined in some cases X to Mc. on print
likelihood of its stepping up production
little
but
is
there
and
been
have
Sheetings
trading.
larger
led
to
cloths which
the dawn of a new year. Some of
dull and lower; so were fine and fancy goods. In finished to any marked extent until
rolls slightly, while others are
pay
increasing
are
cotton goods and silks there was a good holiday trade, re- the plants
reduce forces. In San Francisco
to
necessary
it
finding
many
in
prices
lowest
flecting a larger retail business. The
last week and while the department
years were named for rugs and carpets by leading producers, general trade was spotty
a large trade with sales nearly
the cuts ranging from 10 to 30% below the prices of last year stores as a rule were handling
of profit is comparatively
margin
the
years,
former
to
equal
adsilk
Raw
.
but even so the demand was not stimulated
not yet started to move
has
e
merchandis
Holiday
vanced 7 to 8 points at the Exchange and the spot prices were small.
also firmer but trade dragged. Cocoa advanced; rose 7 to 9 briskly.
Early reports on industrial conditions in October indicate
points. Hides declined 15 to 30 points.
month according to the
The stock market this week has been quiet and more or less greater activity than in previous
survey. Wholesale
monthly
s
Commerce'
of
t
Departmen
by
not
was
halted
which
trend
irregular but with a downward
level of a month
the
maintain
to
continued
general
in
marking up steel prices for the first quarter of 1931 $1 for prices
to recover but prices
plates, shapes and bars. On the 4th inst. there was a de- ago and showed somewhat a tendency
slightly from September
cline quite generally of 2 to 3 points with sales of approxi- for wheat,copper and cotton receded
the first 10 months
during
sales
goods
dry
Wholesale
mately 1,591,000 shares. The stock market seems to be level.
according to the
awaiting a new cue from some source. President Hoover's of 1930 were 24% below the 1929 level,
. WholeWashington
in
issued
review
Board
Reserve
the
Federal
in
of
dullness speculamessage was read with interest but
and groceries
tion had no very marked effect, though what there was, was sale hardware sales were off 18%, drugs 8%
were:
favorable if anything. But nothing seems capable of arous- 5%. For the month of October alone the decreases
groceries
and
10%
drugs
22%;
hardware
24%;
To-day
was
there
an ir- Dry goods
ing the market from its lethargy.
was
regular decline with sales of little less than 1,600,000 shares. 12%. The only increase in any item for any district
were
sales
grocery
wholesale
October
where
City
3
Kansas
to
points.
Judging
1
from
in
the
declined
Rails and utilities
general tenor of the annual report of the Farm Board, that 6% above the 1929 level.
An increase in department store sales from September to
body is not quite so sanguine as it has seemed to be in the past
markets
of
regardless
the
law October by an amount greater than the usual seasonal inof the feasibility of regulating
Board in an
of supply and demand. It concedes that there are drawbacks creases was reported by the Federal Reserve
of its regular
results
the
giving
29
Nov.
and
ent
wheat
of
announcem
was
cotton
selling
in such attempts. Still
figures showed the increase
hesitant lest the heavy hand of the Board descend upon short monthly survey. The Board's
of trading days in
sellers at about a certain level of prices. One of the best to have been 9% based on the number
sales, however,
October
the
of
value
The
months.
of
the
absence
old
the
two
is
the
hectic
things about the stock market
last year.
October
in
than
smaller
8%
been
have
trading. The fall of the Tardieu Ministry in France had no was said to
& Co. earnings for the
Roebuck
Sears,
that
reports
American.
alone
Chicago
let
German
securities,
French
effect on
a decline of 20.8% in sales
securities were firmer. American bonds here were lower co- period Nov. 6 to Dec. 3 showed
period last year. Negotiations beincident with the selling down of railroad issues. Outside compared with the same
tween Sears Roebuck & Co. and Montgomery Ward & Co.
money was 13' at call.
to press advices from
Chicago reported cold weather throughout the Middle for a merger have failed according
that ended the
conference
the
that
say
which
fuel
and
clothing,
in
Chicago
foodbusiness
stimulated
West had
been held in
have
to
is
understood
merger
a
of
retail
hampered
possibility
trade to
stuffs, but snows and rain have
ago.
time
some extent. Christmas buying is starting earlier than usual New York a short
November sales of Montgomery Ward & Co. it seems were
and the volume is unexpectedly heavy. Several firms are
until
Christmas eve, about 25% less than in the same month last year. Sales
paying bonuses now instead of waiting
6, as compared
as ordinarily and this will turn loose a large amount of ready for November this year totalled $22,401,42
is a decrease of
This
1929.
November
in
3
$29,851,30
Christmas
with
off
funds—a
large
cash. The banks are paying
first 11 months
the
for
sales
Total
24.96%.
or
part of which is returning immediately to circulation through $7,449,877,
$255,731,305 for the
against
41
$243,747,4
were
New
that
year
this
reported
as
England
Boston
Christmas buying.
is $12,083,864, or
a whole has shown a very slight improvement in business same period last year. The decrease
Co. announced that the proMotor
Hudson
The
are
4.73%.
industries
unpractically
some
although
conditions,
to more than 2,000
changed. Payrolls and employment in New England are duction schedule has been increased
June.
about the same as they were a year ago and the decline in cars a week, the maximum since
For the fourteenth successive month Bradstreet's food
business is diminishing.
number as of December 1, which was $9.8352, records
Southern
that
are
index
merchants
Charlotte, N. C. reported
brings the monthly
rapidly giving precedent to Christmas lines among their a decline, this time of 2.2%, which
recorded on Dec. 1
number
the
from
19.6%
to
number
the
forward
looking
index
are
Christmas
and
featured goods
Sept. 1915. From
since
level
lowest
the
to
and
increase
ago
their yearly a year
season as a last minute opportunity to
of June 1 1921 there is a decline
deflation
after
two
of
point
the
that
wired
low
Loring
the
Ga.
Mills
Augusta,
earnings.
the peak of Feb. 1 1920 the decrease
in the Horse Creek Valley section have returned to full time shown of 7.3% and from
over Aug. 1 1914 index number
operations and another to part time. The Langley Mill is is 52.8%, but the advance
for unemployment relief
movement
new
A
12.9%.
looms
1,000
at
and
operating
time
still
is
day
night
full
running at
,000 for public works
$1,000,000
of
e
expenditur
an
The
goods.
at
for
Aiken Mills aiming
to keep up with a better demand
Government as a means of
at Bath are also running at full day time and operating 150 and improvement by Federal
reported started on the 1st inst.
looms at night. The Seminole Mills at Clearwater are run- providing employment
3608
FINANCIAL CHRONICLE
(VOL. 131.
.M.
49INCOCAW..4ZaWCO....00t0
1.4.2.WCAN.401W...WWW,
OCT
WWW0
WOCCA
COMMW
through the formation of the Emergency Committee for the lowest level since 1922. A further decline occurred in the first half of
November. October loadings of bulk freight also showed a further decline.
Federal public work.
Department store sales in this district expanded in about the average
Japanese mills are sold out until the spring months and seasonal
amount during October,
life insurance sales increased much
several Chinese mills are adding additional spindles. The less than usually, and this bank's while
index declined to a new low level for the
total spindleage in China is now very close to 4,000,000 current business recession; advertising also expanded leas than is usual for
October. New corporations chartered in New York State increased by less
spindles. Yokohama mail advices stated that the Japan than
the usual seasonal amount
October, but at the same time the
Cotton Spinners' Association reports combined October pro- number of business failures after during
seasonal adjustment was lower than in the
duction of its associated mills at 195,920 bales showing an preceding month.
(Adjusted for seasonal variations and usual year-to-year growth.)
increase of 1,830 bales over September. The prominent
feature of the latest monthly statistics is a sharp reduction in
1929.
1930.
the output of 20s, an accelerated production for coarser
Aug.
Oa.
Sept.
Oa.
yarns, moderate gains for finer count yarns and a falling off
Primary Distribution—
in medium count threads.
Car loadings, merchandise and miscellaneous__ 101
84
86
Car loadings, other
92
Another cold wave was sweeping over the Central West, Exports
73
74
100
79
P71
according to press advices on the 1st inst. Indications were Imports
99
125
3104
Panama Canal traffic
92
68
-that temperatures would be down around 10 degrees above
Distribution to Consumer—
store sales, 2d District
89
90
98
zero in Chicago. The approaching cold wave originated in Department
Chain store sales, other than grocery
99
86
88
Life insurance paid for
Alaska, where temperatures were 46 to 52 degrees below Advertising
99
92
82
103
85
87
General Business Activity—
zero while in portions of Northwest Canada temperatures as
Bank debits, outside of New York City
116
92
92
low as 40 degrees below zero were registered. A Canadian Bank
debits, New York City
218
114
113
of bank deposits,outside of N.Y.City
137
100
100
press report from Montreal said that the presence of light Velocity
Velocity of bank deposits, New York City
244
115
118
540
broken ice along both shores of the St. Lawrence River be- Sharessold on N.Y.Stock Exchange
242
221
Postal receipts
102
91
91
tween Three Rivers and Quebec indicated that navigation Electric Power
102
388
in the United States r
Y103
r86
rirk
would soon end. Daylight savings time went into effect in Employment
Business failures
103
123
119
contracts
89
72
as
Argentine at midnight on Dec. 1. Clocks were set ahead one Building
New corporations formed in N.Y.State
93
98
90
73
hour. It is the first time that this has been done. Paris Real estate transfers
58
61
*General price level
181
167
163
reports the River Seine as rising sharply again causing heavy *Composite index of wages
228
221
225
*Cost of living
173
164
163
floods in the Upper Seine Valley. On Dec. 1st it was 34 to
p Preliminary. r Revised. * 1913=100.
55 degress here. On the 2nd inst. it was 15 to 27 degrees.
In Boston it was 14 to 20, Chicago 6 to 30, Cincinnati 12 to Business Profits in
Third Quarter of 1930 Less Than
30, Cleveland 10 to 24, Denver 24 to 30, Detroit 6 to 24,
Half Those in Same Period Last Year According
Kansas City 20 to 54, Milwaukee 2 below to 28 above zero,
to Federal Reserve Bank of New York.
St. Paul 8 to 28 above, Montreal 2 below to 4 above, Omaha
With
regard to business profits in the third quarter of the
14 to 38 above, Philadelphia 20 to 28, Portland, Me. 10 to
present
year, the Dec. 1 "Monthly Review" of the Federal
14; Portland, Ore. 40 to 48; San Francisco 50 to 62, Seattle
48 to 52, St. Louis 20 to 40, and Winnipeg 4 below to 24 Reserve Bank of New York says:
Further evidence of the effects of the business recession Is contained in
above.
the reports of business profits for the third quarter of this year. The
To-day the temperature here was 42 to 43 degrees and the total net profits of 261 industrial and mercantile concerns, which so far
forecast was for cloudy conditions followed by rain to- have made public comparable earnings statements covering the three months
July to September, were slightly less than half those of the third
morrow and probably to-night with continued mild condi- from
quarter of 1929, and 42% smaller than the return in the corresponding
tions. Overnight Boston was 30 to 42, Montreal 10 to 12, period of 1928. In
general, it appears that industrial profits during the
New York 40 to 46, Chicago 38 to 42, Cincinnati 38 to 54, third quarter of this year were the smallest since the final three months
Milwaukee 36 to 40, Kansas City 36 to 44, St. Paul 28 to 30, of 1927, and the lowest for any third quarter since 1924.
Net
of the same list of 201 companies for the completed nine
Winnipeg 14 to 20. In Paris on Dec. 1 all passenger train monthsprofits
of the year were 37% below a year ago and 20% less than in 1928.
service from the Invalides station was suspended because Railroad equipment and paper concerns were the only groups to show any
underground tracks were flooded by high water in the increase between 1929 and 1930. Compared with 1928, however, there
were a number of additional groups of companies which had a larger net
Seine. The river reached the Austerlitz bridge level, 19 return,
including steel, motion picture, chemical, food and food products,
feet 6 inches above normal, for the first time in half a dozen and printing and publishing.
Third
quarter net operating income of Class I railroads was 29% smaller
years. Vera Cruz wires reported a hurricane had hit the
than a year ago, and the smallest for any year since 1923; for the comcity, imperilling shipping.
pleted first nine months, there was a reduction of 31% from a
Decline in Wholesale Trade During October Reported
by Federal Reserve Board.
Reports to the Federal Reserve system by wholesale firms
selling groceries, dry goods, hardware, and drugs indicate
that in all these lilies sales in the month of October were considerably smaller than a year ago. Reports for the first ten
months of the year combined also show decreases as compared
with last year in the four lines of wholesale trade. Details
are furnished as follows by tue Board under date of Dec. 2
year ago
and of 20% from the 1928 level. In contrast with the sizable decreases in
industrial and railroad profits, both the telephone and other public utility
companies reported net returns in the third quarter only slightly smaller
than a year ago, and continued to show comparatively large increases over
other recent years. Net operating income of telephone companies for the
first nine months of 1930 was only 1%% less than a year ago, while other
public utility concerns reported an increase of 2%%.
(Net profits in millions of dollars.
Corporation Group.
Automobile
Automobile parts & accesPERCENTAGE INCREASE (+) OR DECREASE (—) BY
sories(excl, of tires).
Building supplies
FEDERAL RESERVE DISTRICTS.
Chemical
Coal and coke
Copper
District Number.
Line.
Sales, October 1930, Compared with October 1929.
Other mining &smelting _
Electrical equipment_ _
Tot. 1
2
3
4
5
Food dc food products-—
6
7
9 10 11 12
8
Machinery
Groceries
—12 —13 —10 —9 —17 —14 —19 —6-13 —15 +6-13 —9 Motion picture
Dry goods
—24 ____ —22 —9 —20 —14 —26 —26 —26 --_ —16 —35 —22 Office equipment
Hardware_ _ _ _ —22 ____ —21 —14 —22 —20 —25 —21 —28 —24 —7-26-21 Oil
Drugs
10
—6 —2 —14 —12 —20 —10
—12 —23 —14 Paper
9Printing & publishing_
Sales Jan. 1.0ct. 31 1930. Compared with Jan. 1.0ct. 31 1929. Railroad equipment
Steel
Groceries
—5 —8 —5 —4 —6 —6 13 —3 —8 —4 —4 —7 —0- Textiles
Dry goods
—241___I-201-121-21-171-241-291-271__I—161-311-22- Tobacco
Hardware_ _ —18 ____ —16 —10 —18 —15 —20 —23 —22 —15 —12 —20 —16- Miscellaneous
Drugs
—8 ---- —5 —1 —11 —5 —12 —11 —12..-- —7—17 —5Total 20 groups
1 Batton. 2 New York. 3 Philadelphia. 4 Cleveland. 5 Richmond.
II Atlanta, 7 Chicago. 8 St. Louts. 9 Mhmeapolls. 10 SAMS City. 11 Dal- Telep. (net over. income)
ian. 12 Ban Francisco.
Other public utilities (net
earnings)
Third QuarterNo. of
Cosn
panto. 1928. 1929. 1930.
Nine Months.
1928.
1929.
1930.
13
114
93
26
332
324
g 148
26
9
13
7
8
12
8
31
14
6
6
22
5
5
7
13
6
7
43
16
6
18
1
10
9
21
43
10
7
4
46
2
6
10
48
2
3
48
16
7
22
2
14
12
27
53
11
15
6
51
4
7
12
84
2
43
14
48
4
24
23
56
120
26
21
13
89
7
20
24
126
4
8
125
57
17
60
6
39
35
75
130
32
42
18
114
9
22
31
239
5
9
150
27
It 8
151
.
1 2
110
18
55
128
121
38
12
57
5
3
17
..
1
4
17
44
5
7
3
25
3
5
12
33
1
2
32
8
P.4
rgo
21
33
141
2
8
101
261
423
501
245
1,127
1,421
898
103
61
66
'65
190
205
'202
95
192
224
223
623
732
751
Total public utilities__
198
253
New York Federal Reserve Bank's Indexes of Business
290
288
813
937
953
Class I railroads (net
Activity.
operating income)_ _ _
171
355
RAR
951.
1
R91
oiti
aim
In stating that its indexes give evidence of a further •September estimated.
decline in business activity during October, the Federal Reserve Bank of New York, in its Dec. 1 "Monthly Review," Federal Reserve Board's Survey of Department Store
Trade in October—Increase of 9% as Compared
adds:
with Previous Month.
One of the most important
business
conditions—
indicators of general
carloadings of merchandise and miscellaneous freight—showed a further
Department store sales increased from September to
decrease, and after adjustment for the usual seasonal variations, reached
October by 9% when allowance is made for the number of
lows: No. 1, 8-30; No. 2, 8-12; No. 4, 18-64; No. 5, 7-11; No. 7, 8-30; No. 8, 6-10;
No. 11, 6-14; No. 12, 8-20.
trading days. This increase is greater than the estimated
seasonal increase for that period, and the Federal Reserve
Board's index of department store sales, which is adjusted
for seasonal variation, advanced by 3% during the month,
an advance approximately equal to the decline during the
preceding month. As compared with last year, the aggregate value of sales in October was 8% smaller.
The Federal Reserve Board's index of department store
sales for the period January 1925 to date is shown below:
DEPARTMENT STORE STOCKS.
100.)
(Index numbers: 1923-1925 averag
End of
Month.
January
February
March
April
May
June
July
August
September
October
November
December
DEPARTMENT STORE SALES.
(Index numbers of daily average sales (*): 1923-1925 average=100.)
Adjusted for Seasonal
Variation. a
Without Seasonal Adjustment.
99
103
103
102
102
102
101
101
101
111
104
104
106
105
101
105
109
105
106
108
106
109
106
108
107
108
106
106
105
106
105
111
104
107
108
106
108
106
107
106
107
107
110
107
112
10S
108
111
110
111
112
110
109
113
109
111
114
112
108
108
107
108
110
105
105
103
100
102
99
102
___
___
84
85
94
105
103
98
75
76
97
122
122
176
91
88
97
105
107
102
80
81
113
115
125
192
.cnt...,scoomwv.c.
January
February
March
April
May
June
July
August
September
October
November
December
WW..0W..400000001
NOV4,00.0.000.
1925 1926 1927 1928 1929 1930 1925 1926 1927 1928 1929 1930
.... ...
1w ww 00-a 000000
....o.p.tomt.-4-40
Month.
103 106 107 105 Ill
Year
88
89
93
110
105
98
71
77
103
112
___
Computed on the basis of the number of week days and the number of Saturdays
In each month- Sa urday being considered equivalent to one and one-th ,d dayswith allowance for he number of Sundays in each month and for six National holidays: New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas.
a Adjustment has been made in March and April for the effects of changes In the
date of Easter.
DEPARTMENT STORE SALES.
(Percentage increase(+) or Decrease(-)from a year ago.)
District or City.
Jan. 1 No.
of
Oct.
to
(5) Oct.31. Stores
District or City.
Oct.
(4)
Jan. 1 No.
to
of
0a.81 Stores
Selected City4
-7
Duluth-Superior___ -3
5
-4
-9
Fort Worth
-9
5
-7
Houston
5
-13 -10
Indianapolis
4
-6
-s
Kansas City
-9
10
-9
-6
Los Angeles
-4
5
-8
Louisville
4
-25 -12
Memphis
-12
-11
5
-7
Milwaukee
4
0
-7
Minneapolis
4
-2
-4
Nashville
-4
0
Newark
4
-7
-6
New Haven
4
-6
New Orleans
-8
-5
11
New York
5
-21 -19
4
-4 +11
4
Oakland
+2
3
-1
Omaha
-9
8
+4
12
-7
-7
4
Philadelphia
-12 -14
-4
7
-5
Pittsburgh
12
-10
-9 -8
9
4
Providence
-10 -10
4
-5
-2
Rochester
5
-16
-9
-5
San Francisco
6
28
-13 -11
-11 -10
5
Salt Lake City
-1
-8
Seattle
5
-6
-16 -12
3
-1
Spokane
-8
6
-8
-8
4
-9
St. Louis
5
-9
-8
5
-5
St. Paul
3
-12
4
-8
Syracuse
5
-4
-5
-15 -17
4
Toledo
6
-22 -20
+2
-1
7
Washington
in
most
in
cities
month;
was
there
the
* Comparisons re ate to total sa es dur ng
year.
October the same number of trading days this year and last
DEPARTMENT STORE SALES, BY DEPARTMENTS.
Percentage increase(+)or decrease(-) October 1930 compared with October 1929.
(Monthly sales; the ma ority of the stores were open the same number of days
this year and last year.)
Total (261 cities)._
F. R. DistrictBoston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Seleaed CilyAkron
Atlanta
Baltimore
Birmingham
Boston
Bridgeport
Buffalo
Chicago
Cincinnati
Cleveland
Columbus
Dallas
Dayton
Denver
Detroit
3609
FINANCIAL CHRONICLE
DEC. 6 1930.]
641
-8
-10
-5
-7
-10
+2
-5
-14
-11
-5
-4
-8
-8
-4
-1
104
66
65
57
34
42
100
21
23
38
24
67
Bos- New Cleve- Rich- Cht- St. Dal- San
ton. York. land. mond cogo. Louts las. Fran.
Without Seasonal Adjustment,
1925 1926 1927 1928 1929 1930 1925 1926 1927 1928 1929 1930
102
101
102
102
101
101
101
102
103
101
102
103
105
104
104
103
102
101
100
101
102
104
103
102
104
103
103
103
102
101
102
102
104
104
104
103
103
103
101
101
100
99
100
101
99
102
102
100
100
100
99
99
99
98
99
100
100
101
102
100
99
98
97
97
96
96
94
91
91
92
90
96
105
106
103
98
94
98
107
112
115
97
93
98
107
107
104
98
93
97
107
114
117
96
93
98
107
107
104
98
95
98
108
114
117
96
92
98
105
106
102
96
93
97
103
112
115
94
89
95
102
103
101
95
92
96
104
112
115
94
88
93
100
101
98
93
87
87
95
101
-
102 103 103 101 100
Year
The Department of Commerce's Weekly Statement of
Business Conditions in the United States.
According to the Department of Commerce business for
the week ended Nov. 29 1930, as measured by the volume
of checks presented for payment declined from the preceding
period and was lower than a year ago.
Wholesale prices, as measured by the index of 120 commodities declined but slightly from a week ago due mainly
to lower prices paid for agricultural products. The price of
red winter wheat at Kansas City showed an increase over
the price of a week ago while the price of middling cotton at
New York declined. Iron and steel prices remained at the
same level as last week.
Bank loans and discounts of Federal Reserve member
banks were fractionally lower than the preceding period and
were also lower than a year ago. The prices for representatative stocks and bonds declined from the week of Nov. 22.
In comparison with the corresponding period of 1929, bond
prices were higher and stock prices lower. Interest rates
for both call and time money were the same as the previous
week, but as compared with last year were considerably
lower. The number of business failures reported during the
week ended Nov. 29 were less numerous than the preceding
week.
For the week ended Nov. 22 1930 increases occurred over
the preceding period and the value of building contracts
awarded in 37 States and in the production of lumber, while
declines occurred in the production of petroleum and bituminous coal, freight car loadings, and in the receipts of
wheat, cattle and hogs at important markets.
Bank loans and discounts of member banks were greater
and the Federal Reserve ratio higher for the week of Nov. 29
1930, when compared with a similar period in 1928, two
years ago.
WEEKLY BUSINESS INDICATORS.
(Weeks Ended Saturday. Average 1923-25=100.)
1929.
1930.
Nov. Nov. Nov
29. 22. 15.
"..10!0!0N.000000t-t.0 00
0.
owoNapt-momoociomeo,nN
N.m._ wocomoo
0{W000 rw
0t00
00000 c-0000
Federal Reserve District.
Total.
Department.
Adjusted for Seasonal
Variation.
1928.
Nov. Nov. Nov.
30. 23.
8.
Dec. Nov.
24.
1.
88.2 90.8
102.5 *114.6
126.6 126.4
87.3 99.1
__ __ 101.4
110.5 109.2
101.6 112.7
120.3 120.3
93.8 107.3
__ __ __
e
171.2 113.4
140.9 139.1
238.8 236.5
67.7 104.7
73.8 101.5
56.6 56.6
Steel ingot production
99.7 99.6
__ _ _
Bituminous coal production
110.7 110.3
Petroleum produc'n (daily avge.)- ... __
86.5 91.9
Freight car loadings
59.2 64.0
a Lumber production
Building contracts. 37 States
64.6
69.7
--.
(daily average)
--81.2 93.5
Wheat receipts
231.9 231.9
5-.i
Cotton receipts
96.2 91.5
Cattle receipts
90.0 78.9
__ __
Rog receipts
Wholesale prices:
Fisher's index (1926=100)
82.2 82.2
80.6
Total (120)
81.3 82.5
Agricultural products(30)- 77.5
81.3 80.8
80.3
Non-agrlcul. products (90)
51.9 55.0
Wheat No.2 red, Kansas City.. 54.3
41.2 40.4
39.0
Cotton, middling
77.2 77.2
77.0
Iron and steel composite
79.7 68.1
__ _ _
Copper, electrolytic price-100.7 111.7
99.1
Bank debits outside N.Y. City
133.4 134.5
132.2
Bank loans and discounts
48.5 48.5
48.5
Interest rates-Call money
62.9 66.3
62.9
Time money
120.1
121.6
113.3
failures
Business
161.0 162.4
164.0
Stock prices
106.5 107.0
106.5
Bond prices
104.8 105.5
105.0
Federal Reserve ratio
92.6 92.8
94.3
Money in circulation
b Composite Index79.6
*77.5
__
_
_
New York "Times"
*78.5 *80.7
__ __
Business week
Piece Goods133.7 79.2
+1 -21
-4 -27
-20 -16 -11
Bilks and velvets
53.3 48.0
0 -8
-22 -9 -13 +3 -12
Woolen dress goods
168.8 184.2
-18 +3
-17 -5 -7 +7 -4
Cotton wash goods
76.6 102.8
-18
-11
-2
+10
-15
-7
-12
Linens
90.6 99.8
-22 -3
0 +5 -16
Domestics, muslins, arc-- ----- -1 -3
Accesles
Wear
Ready-to-18 -22
-14 -6 -18 -10 -23
Neckwear,scarfs
92.3 92.2 97.3 97.3
-12 -18
-18 +2 -25
-17
Millinery
97.5 97.2 97.2 97.3
0
+11
+25 +11
-3
-3
Gloves(women's, chilli's)
91.2 91.1 97.1 97.2
-11
-12 +1
-4 -6 -3 +8
Corsets, brassiers
93.8 93.0 88.4 88.4
-17
-17
-8
+2
-6
chil's)
(women's,
Hosiery
64.7 76.1 75.4
64.0
-6
-10
+14
-1
+4
-----10
-11
Knit underwear
86.9 86.9 87.3 87.4
+15 -10 ----- -24 -8
-3
Silk, muslin underwear_
129.0 129.0 114.5 114.5
-11
+11
-6
-8
-5
-7
-6
Infant's wear
129.8 162.5 133.4 151.6
0 -6
-12 -5 -11 +4 -17
Small leather goods
141.6 142.9 130.1 129.1
-31 -14
-4 -11 -9 -8
Women's shoes
109.1 115.1 181.8 157.6
-4
-14
---31
-9
+30
Children's shoes
114.3 125.7 160.0 160.0
Women's Wear91.2 116.0 102.5 117.0
-19
-9
-6
-11
-----18
suits__
Women's coats,
205.3 233.9 230.7
207.8
-18
-17
-5
-23
-13
-16 -8
Women's dresses
104.9 103.3 108.0 108.1
-2 -5
-6 +19 -3 +49 -9
Misses' coats, Mitt;
92.6 91.9 84.1 88.3
-24
-20
-9
-8
-18
Misses dresses
100.1 99.2 101.1 99.6
+8 -12
+1 +2 -8 -1-4 -15
Juniors', girls' wear
Men's, Boys' Wear93.6 93.7 __ __ ....
-4
-21
-15
-9
-11
-11
-14
Men's. clothing
102.0 101.3 __ __ __ __
+18 -9
-21 -6
+9
Men's turn., hats, caps_
-5
-8--3
-9
+7
-9
+4
Boys' wear
shown b Relative
-7 -6
• Revised. a Relative to weekly average 1927-29 per week
+2 -1 -11 +15 -15
Men's, boy' shoes
to a computed normal taken as 100.
House Furnishings-•
-21
+4
-23
-32
-19
-9
-9
Furniture
-56
-51
+2 -25
Oriental rugs
-21 -10
-20 -12 -19 +9 -25
Domestic floor coverings.
-16 -9 Improvement in Residential Building Reported By
-11 -22 -7 -27
Draperies, upholstery
-33 -21
-21 -15 -12 -12 -24
China, glassware
F. W. Dodge Corporation.
•Data are for about 200 stores with total annual sales in listed departments of
these
o
More
50%
o
than
$1,250,000,000.
On the above subject the F. W. Dodge Corp. says:
$850,000,000 and in all departments
sales are for about 40 stores located in six cities; Boston, New York, Pittsburgh,
improvement in residential building evidenced in the October
more
Further
In
Federal
individual
districts
Angeles.
Los
Reserve
and
Detroit, Cleveland
relative decline from 1929 in this construction
than half of the reported sales are made by stores in following cities: Boston, New record operated to narrow the
York, Pittsburgh and Cleveland, Washington, Detroit an thIllwaukee, St. Louis, type. For the ten elapsed months of 1930 residential building was off
reportThe
total
of
Francisco.
and
San
number
the decline was45;i%
Dallas and Houston, Los Angeles
from 1929; for the nine months ended September
ing stores varies from about 65 for certain Items to about 175 for other items; in 44'X
the situation
while at the end of August the loss was 48%. In the meantime
Individual Federal Reserve districts corresponding ranges are usually about as,
3
3610
FINANCIAL CHRONICLE
In non-residential building has become progressively worse, the October
contract total being lower than in any month since February 1925. Nonresidential building contracts at the end of October were 21% lower than
for the corresponding ten-month period of 1929: at the end of September
this class showed a decline of 18% from 1929: while at the end of August
the decrease was only 16% from last year. In the ensuing months further
large declines in non-residential building are indicated with gains almost
certain in residential building for most of the months of 1931 when compared
with their corresponding 1930 totals. This is the analysis of cross-currents
in the building industry by L. Seth Schnitman, Chief Statistician.
High Wages to Stay, Asserts Report of Management
Division of American Society of Mechanical Engineers-Says Machines Make Jobs.
Existing conditions in industry, according to the annual
report of the management division of the American Society
of Mechanical Engineers, are regarded as an ultimate source
of strength rather than weakness. In reporting this the New
York "Times" of Dec. 1 continued:
The complete report as one of a series on industrial progress will be discussed at the annual five-day meeting of the Society, which opens this morning in the Engineering Societies Bldg. In East 39th St.
That high wages, in spite of depressions in this country, have come to
Stay and that improved machinery has made more work are other conclusions noted in the report.
"If the business cycle may be epitomized by dividing it into stages of confidence, doubt, fear and hope, then we believe we are well into the fourth
stage of the cycle," the report states.
"Technological unemployment has received much blame, but on the
Other hand many data have merged to indicate that it is not the major
difficulty. If the facts ore taken over a period of years, regardless of individual and temporary situations, improved machinery has made more
Work. Over a 20-year period. employment has increased 40% as compared
with a population increase of 32%. Since 1909 the income of wage earners
in the United States has risen from 30 billion a year to 90 billion."
White House Leadership Hailed.
Discussing engineering leadership in the White House. the Committee
points out that for the first time in history a President had exerted his influence to mobilize industrial forces for the deliberate improvement of industrial conditions during a depression.
As to the high wage principle in industry the report asserts relatively few
of the leading companies have cut wages per piece or per hour.although they
have shortened hours and have frequently adopted part-time schedules.
"The very fact that so many leaders are deliberately trying not to cut
wages is enough to vindicate the statement that the high wage theory has
come to stay in this country.
"More than one million employees. "the report continues, "are said to
hold stock amounting to $1,500,000,000 at present market prices. A survey
covering 146 major firms which have stock ownership plans indicates that
relinquishments have been only slightly above what might be experienced
in normal times. On the other hand, some companies are revising their
plans so that a sudden drop in stock prices willbe less likely to discourage
their employees holding stock."
Carnepie's Policy Recalled.
A number of companies are expanding plants during the depression period,
the report points out and recalls further that Andrew Carnegie maintained
that he regularly fostered expansion during a depression, and was thus
always ready for the larger-scale work which was sure to follow.
"In the past decade factories have produced 42% more with 500,000 fewer
employees. Railroads have handled 7% more with 250,000 fewer employees.
Coal mines have produced 23% more per employee with 100.000 fewer
employees."
"Competition," the report explains, "has placed increasing emphasis upon
manufacturing economies as a source of profit and hence there has been uninterrupted search for better and more ffective ways of producing goods."
Men Over 45 Most Useful Workers, State Industrial
Safety Congress Is Told.
The man of 45 and over, whose usefulness in business and
factory frequently has been under debate, won a tribute at
the 14th New York State Industrial Safety Congress at
Syracuse, N. Y. on Dec. 2, according to Associated Press
accounts to the New York "Times," which added:
"It is the old, trained employee that makes us our money," said Harold
Lee, director of the Life Extension Institute of New York. "They are
the ones it is hard to replace. All this talk about hiring men over 45 is,
in my opinion, foolish. In my experience that Is about the time they
begin to be worth something."
The opportunity for, revival and rehabilitation of New York State industry on a new and higher basis of safety, said Frances Perkins, State
Industrial Conunissioner, opening the congress, is afforded by present
conditions.
The period of reduced production, she said, is the time for checking
over and safeguarding machinery and making plant repairs to eliminate
hazards, at the same time offording needed work for employes ordinarily
used In production.
New York Title & Mortgage Company Looks for Early
Trade Revival.
While unfavorable factors are still appearing, the business horizon is not without its brighter prospects, and there
is a growing feeling in business circles that the country is
at or near the "bottom" of the depression and that some
progress may be expected to appear during the next few
months, according to a survey by the National Title Department of the New York Title & Mortgage Co. Under date
of Dec. 1 the survey says:
Current reports indicate a profusion of favorable and unfavorable factors.
Industrial production continues at a very low ebb, in fact, near the lowest
point readied in 1921; railroad car loadings are lagging substantially;
bank failures have shown a sudden gain; foreign trade continues at a
reduced level; factory employment and payrolls are at the lowest point
for the year, and electric power production continues to compare unfavorably.
For.. 131.
On the other band, however, reassuring factors are appearing that would
seem to indicate that the final stages of the period of readjustment are
being completed. Security prices have shown strength of late, and the
undue spirit of pessimism is being replaced with optimism. While commodity prices are still in a state of uncertainty at ridiculously low prices,
they have shown only a slight downward trend in the last few weeks, and
compared with a sharp movement between July 1929 and August 1980,
and some, noticeably sugar, copper, zinc and rubber, have advanced. Automobile production, although declining slightly compared with a month ago,
has shown unusual stability for this season. From all indication, corsumption of goods during the past few months has been in excess of production
and inventories have been materially reduced. Low interest rates and
liberality in the extension of loans, as now prevails, has always aided in
stimulating a recovery.
Business has already been deeply depressed longer than is generally
experienced during a period of readjustment. While many unfavorable
factors still prevail, the weight of evidence indicates that improvement is
in the making,
The security market, of course, reflects general conditions, and the astute
observers consider that the bond market offers unusual opportunities for
investment at this time. There have been large purchases of bonds legal
for savings banks and trust funds, but other bonds have not yet discounted
the easy money market.
Loading of
Railroad Revenue Freight Continues to
Register a Big Falling Off.
Loading of revenue freight for the week ended on Nov. 22
totaled 779,757 cars, the Car Service Division of the American
Railway Association announced on Dec. 2. This was a
reduction of 49,494 cars under the preceding week this year
and a reduction of 169,959 ears below the same week last
year. It also was a reduction of 249,480 cars below the
corresponding week in 1928. Particularizing,the report says:
Miscellaneous freight loading for the week of Nov. 22 totaled 292,291
cars, 59,519 cars under the same week in 1929 and 94,950 cars under the
corresponding week in 1928.
Loading of merchandise less than carload lot freight amounted to 229.537
cars, a decrease of 28,288 cars below the corresponding week last year and
30,893 cars below the same week two years ago.
Coal loading amounted to 147,921 cars, a decrease of 40,797 cars below
the same week in 1929 and 52,969 cars under the same week two years ago.
Forest products loading amounted to 33,111 cars, 21,753 cars under the
corresponding week in 1929 and 31,604 cars under the same week two
years ago.
Ore loading amounted to 8,223 cars, a reduction of 7.521 cars below the
same week in 1929, and 9,529 cars below the same week in 1928.
Coke loading amounted to 7,441 cars, a decrease of 3,713 cars below the
Corresponding week last year and 3,118 cars under the same week In 1928.
Grain and grain products loading for the week totaled 36,363 ears,
3,417 cars below the corresponding week in 1929 and 18,414 cart; below the
same week in 1928. In the western districts alone, grain and grain products
loading
week inamountedto
19
23,589 cars, a decrease of 3.657 cars below the same
Live stock loading totaled 24,870 cars, 4,951 cars under the same week
in 1929 and 8.003 cars under the corresponding week in 1928. In the
wdstern districts alone, live stock loading amounted to 19.639 cars, a
decrease of 3,378 cars compared with the same week last year.
All district.; reported reductions In the total loading of all commodities,
co
inm
19
p2
a8
red not only with the same week in 1929, but also with the same week
Loading of revenue freight In 1930 compared with the two previous years
follows:
1029.
1928.
1930.
Four weeks In January
3,349.424 3,571,455 3,448,895
Four weeks In February
3,505.962 3,766.138 3.590,742
Five weeks In March
4,414,625 4,815.937 4.752.559
Four weeks in April
3,619.293 3,989,142 3,740,307
Five weeks In May
4.898.555 5,182.402 4,939,828
Four weeks In June
3,719,447 4,291,881 3,989,442
Four weeks In July
3,555.731 4,160.078 3,944,041
Film weeks In Aturust
4.670.368 5.600,706 5,348,407
Four weeks In September
3725.243 4,542,289 4,470,541
Four weeks In October
3,817.756 4,679,411 4,703,882
Week ended Nov. 1
934.640 1,072.234 1,103.942
Week ended Nov. 8
881,401 1,048.968 1.054,353
Week ended Nov. 15
829,251
982,926 1,058,120
Week ended Nov. 22
949,716 1,029,237
779.757
Total
42,401,483 48,653,281 47,172,296
Dr. B. M. Anderson Jr. of Chase National Bank of New
York on Financial Situation at Year-End.
The year 1930 has not been as bad as the year 1921 by
a great deal, was the statement made on December 3 in an
address by B. M. Anderson, Jr., economist of the Chase
National Bank of the City of New York. Dr. Anderson
cited in illustration of this point the fact that the slump
In the value product of American industry during the past
year had not been nearly as severe as that of 1921, as measured by physical volume of production of goods multiplied
by the prices at which those goods have been sold. Physical
volume of production, according to Dr. Anderson, appeared
In November, 1930, to have reached as low a level as the
bottom reached in 1921, but for the year 1930 as a whole,
the decline has been much more moderate.
Dr. Anderson, speaking on a radio program sponsored by
Halsey, Stuart & Co., and discussing "The Financial Situation at the Year-End" pointed out that there has been extreme discouragement during the past year. Reaction from
recent illusions, Dr. Anderson suggested, has begotten a
pessimism that has made current conditions much worse
than they needed to be, although the fundamentals of the
present situation justify a substantial trade depression and
make necessary a great deal of readjustment.
Mile. 6 1930.]
3611
FINANCIAL CHRONICLE
The worst of these fundamentals, according to Dr. AnderOur experts have been
son, has been in export trade.
caught in a vise between the debts of the outside world
to ourselves on one hand, and on the other the American
high protective tariff, which severely limits the ability
of foreign countries to send goods to us to earn the dollars
with which to make interest and amortization payments in
the United States and in addition to buy our exports. As
a result, America faces the necessity of making great shifts
in its productive activities, making less goods for the export market and more goods for the domestic market.
In spite of this condition, Dr. Anderson asserted that the
recent depression has been overdone and that for several
months the United States has been consuming more finished
goods than factories have produced, stocks of goods in
the hands of Jobbers and retailers have been steadily
declining, and that a vacuum has thus been created in the
field of consumers goods which will force production to
substantially higher levels even before the adverse fundamentals of international trade have been corrected.
IDr. Anderson further pointed out that opportunities for
prudent Investors which the current situation has made
possible. "When great fears sweep over the investing public, Dr. Anderson said, "good things are slaughtered along
with bad things, perspective is lost and discrimination is
In abeyance." Absolutely gilt-edge bonds, he mentioned,
are not cheap today, for they have been bought in large
quantities, but the great body of bonds less widely known
or less favorably regarded but intrinsically sound have
been neglected, and are consequently selling at attractive
prices. "To-day," Dr. Anderson said, "Is a day of extraordinary opportunity for the discriminating bond buyer." He
referred especially to the values available among certain
foreign bonds payable in dollars and particularly to German Government obligations. "Discrimination," he emphasized "is called for in this field, as in every field of securities, in good times and in bad times."
powers
as to whether or not the development of water
ed
that
remember
be
must
it
rapidly,
was proceeding too
put were
the uses to which hydro-electric current was being
constantly expanding in industry, in the home and on the
farm.
Dun's Report of Failures in November.
r
As the weekly returns clearly had indicated the Novembe
al morcommerci
high
a
reveal
again
statistics
y
insolvenc
month,
tality in the United States. With the shorter
of
which was made still shorter by holidays, the number
4.6%.
being
decline
the
October,
of
that
below
failures fell
Co. for
Thus, the 2,031 defaults reported to R. G. Dun &
in
November compare with 2,124 for October, but only
this
es
insolvenci
fewer
there
were
August
September and
except
year than in the latest instance. In every month
2,000the
above
been
have
failures
named,
last
the two
is
mark, which is an unusual showing. When a contrast
for November
those
and
defaults
month's
last
between
made
was a rise
1929, which totaled 1,796, it is seen that thBre
November have so many
previous
no
in
and
13%,
fully
of
the
insolvencies been recorded. For 11 months this year
also has been
number of commercial failures, at 23,830,
the
unprecedented, the increase over the 20,872 failures of
14%.
than
more
g
somethin
being
1929
of
period
corresponding
all preceding months this
As was the e,a..e in practically
November defaults were exthe
of
liabilities
the
year,
$55,260,730 reported
ceptionally heavy. The aggregate of
about $1,000,000 from the
decreased
Co.
&
Dun
G.
to R.
about 5.8% above the $52,amount for October, but rose
unusual number of large
An
1929.
045,863 of November
of indebtedness last
total
the
swelled
again
es
insolvenci
commercial failures
all
year
this
months
month, and for 11
000. That total is aphave involved close to $585,000,
for the same
proximately 163t % in excess of the liabilities
11 months in 1929.
FAILURES. SHOWING NUMBER AND
MONTHLY AND QUARTERLY
FOR THE PERIODS
LIABILITIES, ARE CONTRASTED BELOW
MENTIONED.
L4abil6gtsa.
Number.
Canada Will Lead in Return to Prosperity, Sir Charles
1928.
1929.
1930.
Gordon, President of the Bank of Montreal, Tells
1928.
1929.
1930.
Stockholders at Annual Meeting.
567,465,114 540,774,160
1,943
2.037
December
52,045.863 40,601.435
2.031 1.796 1.838 $55,260,730 31.313,581 34,990,474
.56,296,577
When the turn in business conditions is made Canada November
2,124 1,822 2,023
October
in
the
n
to
return
prosprocessio
will be found leading the
3150,824,558 3116,366,069
5.804
4th quarter__ - ---- 5.655
perity, Sir Charles Gordon, President of the Bank of Mon34,124,731 33,956,686
46,947,021
1,635
1,568
1,963
49,180,653 33,746,452 58,201,830
1,913 1,762 1,852
treal, told the stockholders of that institution at the annual September
August
39,826,417 32,425,519 29,586,633
1,723
1,752
2,028
meeting. "Whether the pull will be long or short," he July
5,082 5,210 5135,954,091 5100,296,700 3121.745,149
3d quarter__ 5,904
said, "we cannot foretell, but we do know that Canada
829,827,073
2,026 1,767 1,947 $63,130,762 331,374,761 36,116,990
has been through many periods of depression before and June
55,541,462 41,215,865
2,179 1,897 2,008
May
37,985,145
35.269,702
49,059,308
ly."
1,818
successful
2,021
2,198
on each occasion has emerged
April
8107,860,328 3103,929.208
8167,731,532
5,773
5,685
The decline in commodity prices which had taken place
6,403
2d quarter_854,814,145
since the last annual meeting, he said, was not due to March
2,347 1,987 2,236 356,846,015 336,355,691 45,070,642
51,326,365 34,035.772
2,282 1.965 2,178
47,634,411
53,877,145
restriction of credit, for an abundance of money was avail- February
61,185,171
2,759 2,535 2,643
January
able for sound commercial purposes and credit was not
8147,519,198
5124,268,608
5169,357,551
7,055
1st quarter- 7.368 6,487
stinted. Dullness of trade was principally due to the ex-NOVEMBER. 1930.
of
n.
primary
staples
productio
many
FAILURES BY BRANCHES OF BUSINESS
of
tremely low prices
•
In Canada's foreign trade no other commodity approached
LtabflUtes.
Number.
wheat in volume and value, and as a consequence when
1928.
1929.
1930.
1929. 1928
1930.
crop failure occurred, or prices fell below the line of profitdianufadurers•-•
8617,400
8288,400
3358,112
7
15
11
able production, the whole business of the country was Iron
. foundries and nails577,035
394,669
39 2,547,516
26
23
Machinery and tools
23.000
5,300
adversely affected. Sir Charles said:
100,000
2
1
has happened. The wheat crop of 1929 was short in quantity;
glutted market and the foreign
the crop of 1930 faced low prices and a
trade returns disclose the results of these unfavorable factors. To short
much of the reaction in general
crops and congested markets can be traced
the diminished earnings of carbusiness, the decline in railway traffic,
of labor, and above all, diminished
riers by land and water, unemployment
purchasing power of the agricultural class.
This
Important in their bearing on our future outlook, he
remarked, were the figures illustrating the trend of our
economic progress. Canada was now passing from the
first stage of all new countries, namely the utilization of
Its most available resources, to the second stage that of
manufacturing, and the progress in this discretion was
shown by the fact that whereas in 1915 the gross value
of Canada's agricultural products was $1,118,694,000 and
of her manufacture products $1,881,547,000 in 1928 the
figures were: gross value of agricultural products,
$1,730,304,000 and of manufactures $3,769,250,000. In this
connection he drew special attention to the fact that during the present year hydro-electric construction had exceeded that of any previous period in the history of the
Dominion, and said that while this might raise the question
Woolens, carpets & knit gds
Cottons, lace and hosiery__
Lumber, carpenters and
coopers
Clothing and millinery
Hats, gloves and furs
Chemicals and drugs
Paints and oils
Printing and engraving_
Milling and bakers
Leather, shoes & harness
Tobacco, &c,
Glass. earthenware & brick
All other
1
2
71
48
20
4
1
18
27
8
10
14
190
2
82
49
18
10
13
37
6
7
12
203
448 481
Total manufactur1ng
Traders67
104
General stores
266 273
Groceries, meat and fish
88
105
Hotels and restaurants
22
13
Tobacco, Ac
190 146
Clothing and furnishings
96
62
and
carpets
Dry goods
38
59
Shoes, rubbers and trunks_
40
69
Furniture and crockery
42
45
tools&
Hardware. stoves
98
64
Chemicals and drugs
5
13
oils
and
Paints
35
33
Jewelry and clocks
5
11
Books and papers
12
14
Hats, furs and gloves
322 276
All other
Total trading
Other commercial
Total United States
2
105
55
26
5
1
0
29
18
12
7
292
95,350
18.120
105,000
5,037,186
892,762
267,317
175,925
30,600
389,220
362,655
359,212
78,580
2,511,717
6,231,837
4,310,916
901,886
337,345
193,780
6,794.798
1,240,300
315,200
44,207
113,100
74,900
359,200
249,500
87,352
191.042
4,653,811
91,865
236.767
67,050
227,581
185,728
6,920,221
519 319,437,989 514,179,628 315,445,845
100 31,017,652 $1,154,756 51.653,818
312 2,017,905 1,947,558 2,547,537
77 1,365,914 1,358.243 1,594,708
174.700
216,517
23
169,762
140 2,798,514 1.920.160 2,399,065
47 1,722,028 1,164.729 1,287,868
386,043
617,422
51
435,732
735,402
30 1,276,509
431,334
644,1C0
775,734
42
619,940
54 1,364,927
683,745
428,016
210,745
8
29,661
140,744
38
484,550 1,539,347
878.900
14
67,108
61,550
106,800
224,245
9
318,371
240,400
257 7,047,272 4,005,651 4,289,341
1,447 1,166 1,202 321,217,042 816,122,076 817,223,965
138 149 117 14,605,699 21,744,159 7,931,625
2.031 1.798 1,838 MS 9R11 San eno nA r De.,
3612
FINANCIAL CHRONICLE
[VOL. 131.
Dun's Commodity Price Index.
though admitting that the general business indices are not
Monthly comparisons of Dun's index number of wholesale cheering, Dr. Stephen I. Miller, Executive Manager of the
Association, points out that some phases of the present
commodity prices, proportioned to consumption, follow:
GroupsDec. 1'30. Noe.1'30. Dec. 1 '29. Dee. 1 '28. Dec. 1 '27. situation are distinctly favorable. The apparent stabilizaBreadstufts
327.026
327.349
534.292
332.040
332.758 tion in the price of copper
Mesta
is mentioned as having particular
19.057
18.634
22.777
25.087
24.220
Dairy dr garden18.978
20.223
22.141
23.138
22.467 significance, inasmuch as copper led the decline in comOther food
17.688
17.890
18.556
19.577
19.406
Clothing
27.703
28.109
33.959
35.635
35.055 modity prices.
Metals
19.571
19.659
20.997
21.398
22.096
"It is to be hoped that copper, having put its house in
Miscellaneous
32.997
33.324
36.247
36.668
37.340
order,
will help to lead the other commodities back to safer
Total
3163.020
3165.188
3188.969
5193.543
3193.342
ground," Doctor Miller said. He added:
"Collections continue on a fairly satisfactory basis. Retail buying
Detroit Employment-Index of Board of Commerce Was appears to have taken a spurt in many markets.
Money is cheap and plenperhaps too plentiful, and the unemployment problem is being met
75.8% November 30, 79% October 30, 93% Year tiful,
with vigor and resourcefulness. Instalment contracts are being
worked
Ago.
off without an epidemic of defaults, and repossessions are strikingly
small
in
volume.
The "Wall Street Journal" of Dec. 5 reports the fol"The widespread appeal of governments and welfare agencies for unlowing from Detroit:
employment relief has been accorded a response more generous than
Employment index of the industrial department of the Detroit Board
of Commerce on November 30 was 75.8% compared with
79% on October 30 and 93% at the end of November,
1929. High this year was
111.5% in May and low was 48% on July 31.
The index covers two-thirds of the industrial employment
in Detroit
and is based on the monthly average for the years 1923 to 1925, inclusive,
taken as 100%, It is compiled from
the number of men on payrolls
which includes both part and full-time workers.
at
any other time in history.
"Within the past few weeks the appeal to buy when prices are low, the
appeal to make repairs, to build structures. has brought a response never
before known. Such an appeal does not develop buying that is uneconomic
,
but rather promotes sane and opportune expenditure.
"We are hanging on, and carrying on, and the courageous spirit which
has brought us this far will finally take us through the breakers to
a safe
landing."
The bulletin includes a survey of wholesale and manuNational Industrial Conference Board Commends Pro- facturing business in the six New England States. Sixtygram Formulated by Gov. Roosevelt's Committee seven per cent. of the firms contributing to the survey
on Stabilization of Industry and Prevention of reported larger sales in October than in September, and 68%
reported larger collections. The prevailing tone of comments
Unemployment.
According to an analysis made by economists of the Na- from New England was optimistic, several correspondents
tional Industrial Conference Board, the seven points formu- stating that frozen accounts are tending to thaw out and that
lated by Governor Roosevelt's Committee on Stabilization the textiles are on the up-grade.
of Industry and Prevention of Unemployment "constitute a
rational and balanced program, upon some points of which President Dickinson of Indiana Limestone Co. Sees
probably all sections of opinion can agree, while as to others
Progress in Elimination of Waste by Iticlustry.
considerable divergence of opinion may be expected."
American industry is eliminating waste; by utilizing pracTaking the report as a whole the Conference Board agrees tically 100% of all the raw material
which enters plants and
that one of the main factors in the whole unemployment prob- factories, increased business
has been developed through bylem is the difficulty of transition from one job to another re- products, according
to the Indiana Limestone Co. Presisulting from enforced dismissal due to technological im- dent A. E.
Dickinson of the company has the following to
provements or other phases of industrial rationlization. say in the matter:
Especially is this the case when skilled workers of highly
"In our own industry which provides the stone for outstanding buildings
specialized abilities find themselves thrown upon the labor ranging from homes to skyscrapers, a large number
of by-products of commerical
value and use have been developed. It is simply a case of using
market by technical advances in industry which render valuematerial that was formerly thrown into the discard as of no value. The
less their specialized skill. An obvious need exists, says the Indiana limestone industry's enormous natural resources
and large volume
Conference Board,for some agency or combination of agencies of production makes possible the manufacture of by-products on a large
scale.
that will help the employee to effect the adjustment involved
"In the production and fabrication of stone for the building industry,
in such a transition.
considerable waste material is developed. Because of the high calcium
Referring specifically to one of the seven points emphasized value of the oolitic limestone, it is very desirable for many chemical and
uses. Spells and waste pieces up to 150 pounds in weight are
by the Committee's report, the Conference Board says that Industrial
used extensively In the steel industry as a fluxing material for use in
blast
"enough experience has already been accumulated in Ameri- furnaces. Lime, produced from Indiana limestone is used for water
purican industry to afford a firm basis for the belief that a great fication, glue manufacture, production of refractory brick and in the
manufacture ofstrawboard and paper. At present the company is equipped
deal can be done to reduce seasonal fluctuations and other to
produce 25,000 tons annually of calcium lump lime. More than 106.000
tons of pulverized limestone was sold last year for the manufacture of glass
types of irregularity in a broad range of industry."
for agricultural fertilizer.
The third recommendation of the Governor's Committee and
"Many
uses are found for Indiana limestone by-products such as
was "Improvement of the State Labor Service and co-opera- a basis forother
tooth paste, topping for tennis courts, breakwater stone and
tion therewith by employers and labor." On this point the railroad embankments.
"Scientific research Is aiding modern industry."
Conference Board states:
"Our failure to get even a minimum of information concerning the unemployed at any given time, or to take means to connect
those temporarily Seidman & Seidman Report Set Back
in Furniture
out of work with opportunities for re-employment is sufficient indication
that
we simply have not taken the problem seriously enough.
Industry in October.
Labor exchanges
cannot, of course, create jobs but they could, under proper
auspices, do
After two months of mild progress the furniture industry
much to bridge the gap between jobs and, by promoting a more even
flow
of labor, perhaps reduce somewhat the redundant supplies oflabor certain suffered a rather pronounced setback in the month of Octob,r,
in
occupations and localities."
according to a bulletin prepared by Seidman & Seidman,
The recommendation by the Governor's Committee of a certified public accountants, based on a compilation of the
"dismissal wage," as one of the possible steps by which figures of a large number of furniture plants throughout the
temporary unemployment caused by technical and similar country. The bulletin points out that new orders received
changes may be lessened, will sound like a radical step to by the industry in October of this year were 19% less than
many. Although there are about 100 business enterprises in September 1930. When compared with last year the
listed in the files of the Conference Board which have had decline suffered by the industry is even more marked in
some experience with the dismissal wage, the idea will prob- that new orders booked in October were only approximately
ably be new to the majority of employers. A large question 57% as great as October 1929 and shipments were at the
of education is therefore involved in this proposal. As rate of about 60% compared with the same month last year.
matters stand now, except for a relatively few cases, where It is further stated that with shipments exceeding new
employers have adopted some form of dismissal wage, the orders received, the unfilled orders on the books of manudischarged workman must bear the entire shock involved in facturers at the close of October were considerably reduced,
sudden unemployment of himself.
as a result of which the amount of unshipped orders on that
date was the lowest shown for any month in any year since
1923. The average unfilled orders on manufacturers'
Sustained Collections and Livelier Retail Buying Rebooks at the end of October this year were equivalent to less
ported by National Association of Credit Men.
than 17 days' business, compared with about 45 days'
Well sustained collections, somewhat stimulated retail business
on hand last year at the same time.
buying and vigorous efforts to meet the unemployment
According to the figures compiled by the accountants,
problem by both public and private agencies are cited as the
number of employees on the payrolls of furniture manufavorable factors in the December bulletin of the National facturers
on Oct. 31 was approximately 67% of those shown
Association of Credit Men sent to members Dec. 1. Al- on the
same date one year ago. Plants, however, were not
FINANCIAL CHRONICLE
DEC. 6 1930.]
operating as extensively,in that the average plant in October
1929 was working overtime, whereas during October 1930
most plants were working on short hours. If effect were
given to the number of operatives actually employed in
connection with the number of hours worked, the effective
working time in October 1930 was only approximately 46%
as compared with October 1929. The accountants add:
"It will be observed that the position of the industry on Oct. 31 1930
was such as to leave much to be hoped for. With the meager amount of
unfilled orders on the books, manufacturers must look almost entirely to
new business to keep their plants running this winter."
National City Bank of New York Believes Low Level of
Decline Warrants Assumption that End of Slump
is Near—Banking Situation.
In discussing general business conditions in its December
bulletin the National City Bank of New York observes that
"business has now been declining more than 15 months, and
as closely as can be measured has reached a level some 35%
below the peak. This" continues the bank "equals the severity of any previous decline of the past 50 years, and while not
conclusive proof, surely warrants a strong assumption that
the decline is nearing its end." At the outset of its comments
the bank says:
The month of November has seen business continuing to contend with the
force of world-wide depression. Despite the duration of the depression,
new complications have not ceased to arise to confuse the outlook and involve
new groups in the area of readjustment.
The bank likewise says:
That recovery, when it does set in, will be a gradual rather than a rapid
process is quite generally agreed. Besides the usual process of absorbing
excess stocks and over-expanded productive capacity in many different
lines business must make headway against the handicaps imposed by such
unnatural obstacles to trade as proceed from the present world-wide move
to heighten tariff barriers and the necessity of making huge uneconomic
payments on international debts. To what extent these factors will prove
a retarding Influence on world trade and trade of this country no one can
say precisely. Moreover, until the vast populations of India and China
can return to something like their normal consumption, business everywhere seems bound to feel the drag. Yet he would be a pessimist indeed
who would assert that the world must remain in the pit of depression pending
a solution of all these problems. The question, as we see it, is not as to
whether recovery will or will not take place, but rather as to how fast and
how far it will go. It should not be forgotten that It is typical of periods of
business depression for the obstacles to loom up most formidably, and
that we never see the impelling forces from which revival springs until
afterwards.
Regarding the banking situation, the bank has the following to say:
The Banking Situation.
An epidemic of bank failures in the South and Middle West,and a further
break in wheat prices, have been new adverse factors with which business
has had to contend during the past month. So far as the bank failures are
concerned, the developments have come as no great surprise, since it has
been well known that a great many banks had gotten into an unliquid condition, partly as a result of the decline in security values but more particularly owing to the fading out of real estate booms throughout the country.
While in a few cases banks of some prominence in their localities have been
involved, the suspensions in most instances have been of small banks in
rural sections doing business on a limited capital. Everyone realizes now
that the banking business was greatly overdone in many parts of the
country during and just after the war, and that more banks were started in
many small communities than could be supported in normal times. During
the depression of 1921 many of these banks went to the wall, while of those
which came through many continued to struggle under a hangover of frozen
assets. Moreover, the last few years have seen many changes in the small
towns not all of which have been favorable to the local banker. Development of good roads and wider use of the automobile, encouraging shopping
in the larger centers, together with the growth of chain stores, have given
him many problems to meet.
That an outcropping of bank failures should follow a collapse of values
such as this country has just endured is inevitable, particularly under the
present system of unit banking which fails to provide adequate diversity of
banking assets. As a consequence, banks in time of stress sometimes find
themselves already so involved in the local difficulties that they not only
are not able to be the bulwark of strength they should but even become a
factor of additional weakness in the situation. For those communities
which have been so unfortunate as to suffer bank failures there is no question
but that the effects are depressing in the extreme, but for the country as a
whole it would be easy to magnify the significance of these losses. With
the volume of member bank indebtedness to the Reserve Banks at negligible
levels, with member bank holdings of paper eligible for rediscount or pledge
at the Reserve Banks amounting to in excess of 37.000,000,000, and with
Federal Reserve lending capacity practically untouched,the banking system
as a whole stands in an exceedingly strong position, and there need be no
fear as to its ability to continue to provide the credit necessary for business
to carry on. There has been, and will be no general breakdown of credit
such as used to occur in times of stress before the Federal Reserve System.
3613
Prices paid farmers for cotton and cottonseed showed a moderate increase
over Oct. 15. Egg prices advanced seasonally during the month. Farm
prices of hay advanced slightly, the only commodity bringing prices higher
than a year ago.
Group indices of Nov. 15 farm prices showed the following changes from
Oct. 15: grains, fruits and vegetables, down 12 points; meat animals,
down 5 points; dairy products, down 1 point; cotton and cottonseed. up 4
points:and poultry and poultry products. up 17 points. •
The group indices were below those in Nov. 1929, as follows: Poultry
and poultry products, down 54 points; cotton and cottonseed, down 52
points: fruits and vegetables, 45 points; grains, 38 points; meat animals.
26 points; and dairy products, 18 points.
The United States average farm price of hogs at $8.20 per hundredweight
on Nov. 15 was seasonally lower than on Oct. 15. The decline was approximately 8% in the Corn Belt States, 6% in the North Atlantic Division.
5% in the Far West,3% in South Atlantic States.2% in the South Central
area, and about 7% for the country as a whole. The average farm price
of hogs was about 4% below that of a year ago. The decline in prices of
hogs since Oct. 15 is attributed largely to an increase in market supplies
which is usual at this time of year. Receipts of hogs at 7 primary markets
were about 19% larger during the 4-week period ended Nov.15,than during
the preceding four weeks.
Since the decline in farm prices of hogs was not nearly as large as that for
corn, corn-hog ratios were considerably higher on Nov. 15 than on Oct. 15.
For the United States, the ratio increased from 10.7 on Oct. 15 to 12.4
on Nov. 15. For Iowa, the October ratio was 11.9 compared to 14.5 in
November. The ratio for the United States a year ago was 10.5 and for
Iowa 11.8.
November 15 farm prices of sheep and lambs showed little change from
Oct. 15 prices. Price movements were somewhat irregular in different
parts of the country, tending upward in the South and West, while continuing their general downward trend in the Northern States. On Nov. 15.
prices averaged about 1% above prices on Oct. 15 for both classes of meat
animals in the country as a whole. Sheep prices averaged about 41%
below those of a year ago, while farm prices of lambs were down about
47% The recent upward tendency in sheep and lamb prices has been accompanied by a seasonal decline in receipts at primary markets.
The farm price of corn declined sharply during the month ending Nov.lb,
as a result of the adjustment of prices to a new crop basis, the influence of
declining prices of competing feed grains, and indications of a slight increase
in 1930 production over previous estimates. The United States average
farm price was 66.3 cents a bushel on Nov. 15, as compared to 81.9 cents
on Oct. 15 and 81.0 cents a year ago.
for
Heavy maricetings of Canadian and Russian wheat and prospects
good Southern Hemisphere crops exerted a depressing influence on the farm
price of wheat from Oct. 15 to Nov. 15. Wheat prices dropped to 60 cents
per bushel, a new low for the period during which monthly prices have been
collected (1908-193(e. The decline from Oct. 15 to Nov. 15 was general
throughout the country, butranged from 12% in West North Central States
to about1% in the South Atlantic Division,and averaged 8% for the country
as a whole. A year ago, the Nov. 15 farm price was 103.4 cents per bushel.
The United States average farm price of potatoes, at 95 cents per bushel
on Nov. 15, was about 6% lower than on Oct. 15 and 30% below prices a
year ago. The Nov. 1 forecast of production indicated a somewhat larger
crop than was forecast earlier in the season. Carlot shipments during the
first part of November failed to show a usual seasonal decline.
After declining for six successive months, the United States average farm
price of cotton advanced about4% from the unusually low levels reached on
Oct. 15. The upturn in cotton prices was stimulated by slightly lower
production prospects, increased exports, increased domestic consumption
of raw cotton, and a slight improvement in textile activity in most foreign
countries.
Commodity Price Index Shows First Upward Trend
Since September According to National Fertilizer
Association.
The wholesale price index of the National Fertilizer Assn.
consisting of 476 quotations rose four fractional points during
the week ended Nov. 29. Previous to this rise the index
had not shown an upward trend since Sept. 13. The index
number now stands at 81.3, compared with 80.9 last week,
and 95.3 a year ago. It is interesting to note that for the
same week a year ago a slight advance was made immediately
following a rather long weekly decline. The index number
of 100 represents the average for the three years 1926 through
1928. The Association, under date of Dec. 1 added:
Of the 14 groups comprising the index two advanced,six declined,and the
remaining six showed no change. The advances were noted in the groups
of grains, feeds and livestocks, and in fats and oils.
Corn, oats, wheat, barley, cattle, hogs, lambs,flour, lard, cottonseed oil
cotton yarn, silk and cottonseed meal were included in the list of 19 commodities that advanced. Twenty commodities declined during the week,
including butter, eggs, ham, pig iron, zinc, tin, silver, heavy melting steel,
gasoline, rubber. calfskins, cotton, and superphosphate, one of the basic
fertilizers.
\
Supplier of Fresh Fruits and
Vegetables.
The following is from the Nov. 18 issue of "The Business
Outlook" issued by the Wells Fargo Bank & Union Trust
Co. of San Francisco:
California Largest
California leads all other States by a wide margin as the source of fresh
Farm Prices Reached New Lows From Oct. 15 to Nov. 15.
to a recent study
fruits and vegetables for the nation's markets, according
farm
of
general
level
prices
declined from made by the Bureau of Railway Economics of shipments to 66 principal
The index of the
these
of
carloads
products were
year 615,387
106% of the pre-war level on Oct. 15, to 103% on Nov. 15. markets in 1929. During the
the railroads at these points, of which California supplied
by
unloaded
points
lower
33
was
than
index
on
the
15,
15
Nov.
On Nov.
second, accounting for 74,426
192,366 cars or 31% of the total. Florida was
last year, and was at the lowest level since Dec. 1915, accord- cars; Maine third with 32.045. Following in fourth to tenth places were
(28.684),Washington(28.276),Texas (21,931).
ing to the Bureau of Agricultural Economics, U. S. Depart- New York(31,954),Virginia
Idaho (18,066) and Colorado (15,467).
(19,159),
Georgia
further
its
In
report
Nov. 29 the
ment of Agriculture.
Out of the 18 products covered by the study, California was the chief
Bureau said:
supply source ofsix of them. These were practically all the lemons unloaded
Nov. 15 farm prices of most commodities were lower than on Oct. 15, in the 66 markets: 92% of all the grapes; 70% of the cantaloupes;66% of
the only exceptions being cotton, cottonseed, eggs, hay, sheep and lambs. the lettuce;63% of the oranges;and more than 50% of the pears.
3614
FINANCIAL CHRONICLE
Analysis of Imports and Exports of the United States
in September.
The Department of Commerce at Washington on Dec. 1
issued its analysis of the foreign trade of the United States
in September and the 10 months ended with October. This
statement indicates how much of the merchandise exports for
the past two years consisted of crude or of partly or wholly
manufactured products. The following is the report in full:
ANALYSIS OF DOMESTIC EXPORTS FROM AND IMPORTS INTO THE
UNITED STATES FOR THE MONTH OF SEPTEMBER 1930.
(Value In 1,000 Dollars].
Month of October.
1929.
10 Months Ended October.
1930.
1929.
1930.
Per
Per
Per
Per
Value. Cent. Value. Cent. Value. Cent. Value. Cent.
Domestic exports
-562,378 100.0 322.885 100.0 4,301,025 100.0 3,225,658 100.0
Crude materials_ _ 174,270 33.4 104,829 32.5 871,586 20.3 660.927 20.5
Crude foodstuffs_
24,110 4.6 15,228 4.7 229,671 5.3 149.668 4.6
Manurd foodstuffs_ 47,737 9.1 32,060 9.9 399,214 9.3 305.547 9.5
Semi-manufacture& 64,558 12.4 38.038 11.8 622,734 14.5 446,008 13.8
Finished manufrs.- 211.702 40.5 132,728 41.1 2,177,820 50.6 1,663,507 51.6
Imports
391,062 100.0 248,296 100.0 3,751,081 100.0 2,649,537 100.0
Crude materials__
Crude foodstuffs_ __
Manurd foodstuffs_
Semi-manufre
Finished manurrs
126,532
47,210
35.086
82,259
99,977
3.24
12.1
9.0
21.0
25.5
77,474
32,851
23.210
45.530
69.231
31.2 1,321,541
13.2 456,721
9.4 370,564
18.3 761.075
27.9 841,180
35.2
12.2
9.9
20.3
22.4
873.821
343,339
249.641
531,722
651.014
33.0
13.0
9.4
20.1
24.5
Production of Electric Power in the United States in
October Shows a Decline of About 6% as Compared
with the Corresponding Period in 1929.
According to the Division of Power Resources, Geological
Survey, electric power produced by public utility plants in
the United States during the month of October 1930
amounted to approximately 8,161,009,000 kwh., a decrease
of about 6% as compared with tne same month a year ago,
when production totaled approximately 8,709,000,000 kwh.
Of the total for October of this year, 5,891,928,000 kwh.
were produced by fuels and 2,269,081,000 kwh. by water
power. The Survey's statement follows:
PRODUCTION OF ELECTRIC POWER BY PUBLIC UTILITY POWER
PLANTS IN THE UNITED STATES (IN KILOWATT-HOURS).
Tad by Water Power and Fuels.
Distrion.
August.
September.
October.
New England
497.376,0001 516.676,0001 564,522,000
Middle Atlantic__ _ _ 2,034,941,000 2,023,402,000 2,199,427,000
East No. Central._ _ . . .
.
. .
West No.Central_
516.704.000 502,105,000 516,415,000
South Atlantic
792.877,0001 818,587,000 864,454,000
East So. Central__ -- 314.697,000, 307.565,000 325,663,000
West So. Central_ _ _ 464.552.000 439.873,000 422,857,000
Mountain
329.570,000 322,126,000 304,855,000
Pacific
1,179,456,000 1,080,944.000 1,071,103,000
Change in Output
from Previous Year.
Sept.
October.
-5%
-2%
-8%
+3%
-8%
-3%
-1%
-4%
-8%
-2%
-9%
-111%
+4%
-6%
-7%
-2%
Total for U.
7.877,975,000 7,763.904,000 8,161,009.000 -4%
-8%
The average daily production of electricity by public-utility power
plants in the United States in October was 263,300,000 kwh.-nearly 2%
more than the daily production In September. The normal rate of increase in daily output from September to October is about 3 .4%. The
total output of electricity by public-utility power plants in September
was 3.7% less than in September 1929. The total output in October
was 6.3% less than in October 1929. The output in October 1929 was
abnormally large, and this fact should be considered in comparing the output of these months. The combined output for September and October
of this year was about 5% less than for the same months in 1929. This
percentage compares favorably with that for August, when the output
was 5.7% less than In 1929.
The curve of average daily output for 1930 indicates that the production of electricity is reacting about normally to the usual seasonal Increase
in the demand for electricity, as was stated in last month's report (see
"Chronicle" of Nov. 15 1930. page 3112.).
The daily output of electricity by the use of water power continues to
decrease, as there has been no decided break in drouth conditions throughout the country. The average daily production of electricity by the use
of water power In October was the lowest since October 1926. The output by the use of water power was about 28% of the total. This is the
lowest ratio of waterpower output to the total output during the 11 years
of record.
TOTAL MONTHLY PRODUCTION OF ELECTRICITY BY PUBLIO
UTILITY POWER PLANTS IN 1929 AND 1930.
JanuaryFebruaryMarch
April
May
June
July
August
September_ _
October
November
December
1929 a
(kwh)
1930.
(kwh)
8,240.000,000
7,431,000.000
7.992.000.000
7.882.000.000
8,086.000,000
7.768.000.000
8.072.000.000
8.356.000.000
8,062.000,000
8,709.000,000
8.242,000,000
8.512.000,000
8.652.000.000
7.618,000.000
8,173.000.000
8.000.000.000
8,015.000.000
7.752.000.000
7.868.000.000
7 878 000.000
7.764 000.000
8,161,000,000
Increase Invrease
1930
1929
Over
Over
1929.
1928.
5%
3%
2%
1%
cl%
____
c2.5%
c5.7%
c3.7%
c6.3%
c13%
1112%
10%
15%
14%
11%
18%
11%
11%
10%
6%
8%
Total
97.352.000.n00
11%
a Revrod. b Based on output for 28 days. c Decrease.
Produced by
Water Power.
1929.
1930.
33%
33%
39%
42%
43%
40%
38%
34%
31%
31%
34%
35%
40%
41%
40%
39%
36
323
29 „
28%
32%,
33%
36%
..---
--
[VOL. 131.
The quantities given in the tables are based on the operation of all power
plants producing 10,000 kwh. or more per month, engaged in generating
electricity for public use, including Central Stations and Electric-Railway
Plants. Reports are received from plants representing over 95% of the
total capacity. The output of those plants which do not submit reports
is estimated; therefore the figures of output and fuel consumption as reported in the accompanying tables are on a 100% basis.
(The Coal Division, Bureau of Mines, Department of Commerce, cooperates in the preparation of these reports.]
Sub-Normal Industrial Conditions in New England
According to Boston Federal Reserve Bank.
The Dec. 1 "Monthly Review" of the Federal Reserve
Bank of Boston states that "statistical evidence in October
continued to reflect a subnormal condition of industrial
activity in New England, and the general level during each
of the months beginning with July and extending through
October was distinctly lower than in any of the first six
months of the current year when allowances had been made
for the customary seasonal changes." The review continues:
In this district there have been brighter spots, such as the fact that
savings deposits in 62 mutual savings banks on Oct. 31 were about 4%
larger than at the end of October last year, whereas a year ago these
deposits were actually declining. Several Boston department stores this
year have done a volume of business in a single day which was larger
than any other single day in their histories. On the other hand, employment in manufacturing industries in New England in October, according
to the United States Department of Labor, was 18.9% less than in the
corresponding month a year ago, and payrolls in this district were 28.1%
less. Production of boots and shoes in New England during October was
considerably less than in September or in October a year ago, and during
the fimt 10 months of this year was about 14% less than in the corresponding period in 1929. Between September and October there was little
change in New England textile activity, a slight reduction in seasonally
adjusted raw wool consumption offsetting minor improvement in cotton
consumption and silk machinery activity. The Massachusetts Department
of Labor and Industries reported a decline of 7.9% in employment in
October from September in woolen and worsted mills, while for cotton
goods establishments an increase of 4.2% took place. Total value of new
building contracts awarded in this district in October was about 25% less
than in October 1929, and declined by about 15% from September. New
England freight carloadings in October continued to reflect the curtailed
condition of industry and commerce, in that approximately 22% fewer
carloadings were reported than in the corresponding period last year.
The number of commercial failures in October in this district was 177,
as compared with 211 a year ago, but total liabilities in this month
exceeded those of a year ago by 33.6%. Sales of New England department stores in October were 9.3% less than in October 1929, and for
the first 10 months were 4.0% under the volume in the corresponding
period last year. Preliminary reports indicate that Boston department •
store sales in the first three weeks of November were about 4% ahead of
the similar period in November 1929. Money rates in Boston have
remained easy since the middle of the year, contrary to customary seasonal
movements.
Business Conditions in Cleveland Federal Reserve
District-No Evidence of Revival in Activity.
The Federal Reserve Bank of Cleveland states that reports
received from all parts of the Fourth (Cleveland) District
"indicate that business in general continued in October and
early November at the low levels which prevailed in early
fall. Seasonal changes have been shown in some lines but
as yet there has been no evidence of a revival in business
activity." The "Monthly Business Review" of the Bank,
dated Dec. 1, further says:
Department store sales, which showed more than seasonal improvement
in August and September,declined rather sharply in October after allowance
for seasonal variations was made. Sales were 10% below October 1929,
and
In the first 10 months of this year were 9% under the same period of
last
year.
Activity at automobile parts factories in the latter part of November was
somewhat stimulated by new model production by some of the auto manufacturers, although the volume of orders Is still very small. Iron and steel
production continues to lag, but operations at Cleveland furnaces increased
in November. The industry as a whole is operating at about 45% of capacity. Textile and clothing factories were more active seasonally than a
month ago and were among the few groups to show an increase in employment in October. Employment and payrolls declined in October and the
r .tio of demand for labor to applications for work at 13 cities of the Fourth
District declined to 40%, compared with 63.2 last year and 67.7 in
October 1928.
Building activity in this District, both in October and the first half of
November, showed a greater than seasonal Increase. Although the expansion was shared by residential and non-residential building, the comparison
with former years Is still very unfavorable. Electric power production,
despite the seasonal improvement and general upward trend, is below last
year.
Life insurance sales in October were 16% below the same month of 1929
and the first 10 monthsshowed a loss of0.1%. Commercial failures increased
In October, both as compared with September and last year. Liabilities
were also greater. Banks report Christmas savings deposits, now being
released, almost as large as those paid out a year ago.
Crop yields, reported in October, were larger than anticipated a few
months ago, but they are still much below the average of past years.
Prices continue to sag, although the rate of decline has lessened.
Wholesale and retail trade conditions in the District are
indicated as follows:
Retail Trade.
Fourth District department store trade, after increasing more than
seasonally in August and September, showed rather a sharp decline in
October. Sales at 55 stores, on a daily average basis, increased less
than
the usual seasonal amount and the adjusted sales index declined from
98
DEC. 6 1930.]
FINANCIAL CHRONICLE
In September to 91 in October. Sales at all cities except Cleveland were
larger in October than in September, but compared with October 1929,
rather wide variations are noticed. Declines of 1% were shown at Cincinnati,4% at Pittsburgh,8% at Columbus and Wheeling, 15% at Toledo,
16% at Cleveland and 21% at Akron.
Although stocks have been increasing for the past two months in preparation for Christmas selling, the dollar volume on Oct. 31 was 13% below
one year ago. Part of this decrease is due to lower retail prices, but much
of it represents a real contraction in stocks. The stock turnover rate for
October was the same as one year ago and for the first 10 months was
2.75 as against 2.78 in the same period of 1929.
The ratio of installment sales to total sales at department stores in this
District has been showing seasonal fluctuations and in October, at 5.9%,
was only slightly higher than in 1929 when it was 5.6%. Collections on
these accounts have been well maintained. The ratio of all credit sales to
total sales is about the same as In 1929 and collections have held up quite
well, the ratio of collections during October to accounts outstanding on
Sept. 30 being 34.9 this year as against 36.8 one year ago.
Wholesale Trade.
All reporting lines of wholesale trade except drugs and shoes showed some
seasonal improvement in October. but in most cases this was less than has
been experienced at this season of past years. Compared with October 1929
large declines are reported in all branches of trade, drugs begin off 13.7%.
dry goods, 20.4, groceries, 16.9, hardware, 21.9 and shoes, 31.5%. The
crop in grocery sales was unusually large,increasing the discrepancy between
the first 10 months of 1930 and the same period of 1929 to 6.4%. Stocks
In all lines except groceries were lower than in 1929 and collections have
shown a sharper falling-off than have accounts receivable.
Business Activities in St. Louis Federal Reserve District Continue at Relatively Low Levels.
The Federal Reserve Bank of St. Louis in its Dec. 1
"Monthly Review" reports that "available statistics and.
data generally bearing on trade and industry in this district
during the last 30 days failed to indicate improvement in
the depressed conditions which obtained in recent months.
Distribution of goods and activities at manufacturing establishments through October," says the Bank, "continued at
relatively low levels and in a majority of instances reports
received during the first half of November reflect a further
slightly downward trend." The Bank continues:
3615
sentative interests in the several lines scattered through the district showed
the following results:
Poor.
Fair.
Good.
Excellent.
22.5%
67.6%
8.5%
1.4%
October,
1930
25.4
57.7
16.8
0.1
September, 1930
4.3
60.5
32.4
2.8
1929
October,
Commercial failures in the Eighth Federal Reserve District in October,
according to Dun's, numbered 118, involving liabilities of $3,505,807.
against 153 failures with liabilities of $4.427,593 in September, and 124
defaults for a total of $1,881,464 in October, 1929.
The average daily circulation in the United States in October was $4,501,000,000, against $4,492,000,000 in September and $4,810,000,000 in
October. 1929.
Decline in Building Operations in Philadelphia Federal
Reserve District-Real Estate Market Relatively
Quiet.
The Philadelphia Federal Reserve • Bank reports that
building operations in its district during October declined
further, and the rate continued materially below that in
recent years. Further indicating the status of building and
real estate conditions in the district, the Bank, in its Dec. 1
"Business Review," says:
Employment and wage payments decreased seasonally and are smaller
than last year. The demand for building workers in Philadelphia also
was less active than in September.
The aggregate amount of contract awards for construction declined substantially in October, owing principally to fewer awards for industrial
buildings and public works and utilities; contracts for commercial and
residential buildings increased in October. The accompanying chart and
table [We omit chart.-Ed.] show that awards this year have been considerably smaller than in the past five years, not only in the district but also
In several leading cities.
Continuing to reflect industrial conditions, the real estate market remains
relatively quiet. Such increases in demand for rented houses and apartments as have occurred since early October have been chiefly restricted to
leas expensive dwellings. Rents generally are lower than last year. About
one-fourth of the rentable commercial office space in Philadelphia was
reported as vacant on Oct. 1. This is partly the result of recent increases
In commercial buildings.
While the number of real estate deeds recorded in Philadelphia increased
sharply, the value of mortgages was much smaller in October than September; both continued materially less than in the same month for several
years. Foreclosures, after declining seasonally in October, have increased
in November, although the rise has not been as sharp as at the same
time in the past four years.
There has been some increase in the sale of less expensive houses, but
purchases on the whole remain limited when compared with former years.
Buyers generally are finding it difficult to finance their purchases. As a
result of restricted demand and increased caution in placing mortgages,
the financing of new commercial and residential buildings has been decidedly
smaller than in the past two years.
Purchasing by merchants and the public continues on an extremely conservative scale, and there is a general disposition to await developments
before making commitments. Ordering for future delivery in virtually
all wholesaling lines is reported considerably below the average at this
particular time during the past decade. In a limited number of classifications, notably stoves, drugs and chemicals, meat packing and other prepared food products, hardware and groceries, seasonal improvement was
shown in October as compared with September, but in all lines investigated
the volume of business reported in October was below that of the same
month in 1929 and the average during the past five years.
Activities in the iron and steel industry sustained a further moderate
recession in October and early November. New business with mills,
foundries and machine shops is being sparingly placed, and despite curReserve
tailed shipments, backlogs of unfinished orders declined. Manufacturers Industrial Activity in Philadelphia Federal
and distributors of building materials report quietness in the demand for
District in October Below Level of Past Two Years.
their goods. Moderate betterment in demand for bituminous coal for
Industrial activity in the Philadelphia Federal Reserve
domestic heating purposes was offset by smaller requirements for manufacturing and industry generally. Conditions in the agricultural areas were District, after increasing somewhat in the previous month,
favorable for harvesting late crops and general fall work, and yields are
declined during October and continued substantially below
turning out better than indicated earlier in the season. Prices of farm
products, however,continued to decline, and wheat, cotton, hogs and some the level of the past two years. We quote from the Dec. 1
other important products reached the lowest levels in many years. As a "Business Review" of the Federal Reserve Bank of Philaresult of the depressed markets, farmers are disposed to hold their stocks,
to say regarding conand in many sections are holding down their purchases of commodities to delphia, which also had the following
a necessity b teals.
in the district:
ditions
Distribution of automobiles during October according to dealers report-,
Manufacturing operations usually show marked gains in October, but
ing to this Bank, was the am alleet since last January. Sales of department this year most lines turned downward and continued this trend during
October
failed
in
to
district
show
the
the
of
cities
principal
the
in
stores
the first fortnight of November. A decline in building is attributable to
usual seasonal pickup, the total for that month being 2.9% smaller than
seasonal influences, and the same may be said of an increase in the output
in September and 10.6% less than in October 1929. For the year to Nov. 1
anthracite. Quickened by cold weather and the approach of the holithe total was 9.1% sm alter than for the same period last year. Combined of
sales are increasingly active.
sales of all wholesale and jobbing firms reporting to this Bank were in days, retail
Banking figures, moreover, continue to reflect persistent dullness in busiconsiderably smaller volume than in September. and about one-third less
for Reserve Bank credit shows little change and the amount
demand
The
ness.
than in October 1929. Charges to individual checking accounts in October
Such seasonal gain in currency circulawere 10.0% I arger than in September,and 27.2% less than in October 1929. in use is relatively small in volume.
years. Loans of member
The cumul alive tot al for the ye Ir to Nov. 1 was 15.4% smaller than for the tion as occurred lately has been leas than in recent
corresponding period in 1929. The amount of savings depositsshowed little banks, while increasing slightly in the month, have lagged noticeably
been large, suggest.
have
behind the amount of last year, while investments
variation as compared with a month and a year earlier.
Reflecting the general depression in business, freight traffic of railroads ing alow demand for funds from commerce and industry. Money rates show
operating in this district continued the decline in volume which has been in little fluctuation from the low level prevailing for some time.
effect since last winter. As contrasted with the same period during the
Manufacturing.
two preceding years. m irked decreases were noted in all classifications, with
Activity in the manufacturing industry in October not only failed to
merchandise and miscellaneous freight making a particularly unfavorable
from September, so
showing. For the country as a whole, loadings of revenue freight for the rise to the usual seasonal level, but showed a decline
since 1924. Unsatisfirst 44 weeks this year, or to Nov. 1. totaled 39,911,074 cars, against that operations have reached almost the lowest point
45,671,671 cars for the corresponding period in 1929 and 44,032,586 cars factory demand and declining prices have continued among the adverse
in 1928. The St. Louis Terminal Railway Association, which handles factors in the market for manufactured goods.
interchanges for 28 connecting lines. interchanged 194,613 loads in OctoFactory employment and wage payments in this section, as in the
ber, against 186.862 loads in September and 197,835 loads in October 1929. country, declined instead of increasing, as is customary in October. RecesFor the first nine days of November, the interchange amounted to 54.121 sions in employment and payrolls have been almost continuous since early
loads, against 57.676 loads during the corresponding preiod in October, spring, so that in October there were 9% fewer workers employed in Pennand 65,732 loads during the first nine days of November,1929. Passenger sylvania factories and 19% smaller wage earnings than in March. The
traffic of the reporting roads In October decreased 18% as compared with difference between these two changes is due mainly to a reduced number
the same month last year. Estimated tonnage of the Federal Barge Line of working hours. Compared with past years, the employment was even
between St. Louis and New Oroeans in October was 103,000 tons, against smaller than in 1924, when industrial conditions were depressed, and
113,749 tons in September and 137,031 tons In October 1929.
wage payments only slightly above the low point of July of that year. The
Reports relative to collections reflected little change from the slow, backfor workers by local industries in October was exceptionally dull,
demand
ward tendencies noted in recent montini. Generally through the rural the percentage of positions offered to applicants in Pennsylvania declining
the
in
particularly
South,
merchants are complaining of
areas, but more
to the lowest figure in that month since 1921.
slow settlements, due partly to a disposition on the part of farmers to hold
Productive activity, which usually reaches the fall peak in October,
their products for more favorable markets. Payments to wholesalers in I
declined to nearly the lowest level in six years when allowance is made for
the large distributing centres are Irregular and spotted. Retailers in a
changes. This also holds true for the country, the decline In
strong cash position are taking up their bills promptly, but these are not seasonal
being even greater relatively than in this district.
production
of
Lucre
number
an
axing
requests
for
and
majority
reis
extensions
in the
Metal fabricating industries, which are ordinarily active in October,
ported. Settlements of retailers in the large centres were in relatively
considerable curtailment, so that the present level of operation
smaller volume in October and early November than a month and a year showed a
any month of the past five years. The output of pig
earlier. Time payment houses report more difficulty in getting in their Is lower than in
products continues at an exceptionally low rate. The eke.
money than heretofore. Replies to questionnaires addressed to repro- iron and steel
3616
FINANCIAL CHRONICLE
trical apparatus industry, after rising slightly in September, declined
drastically, reaching the lowest point since early 1928, when allowance
is made for seasonal changes. Activity of iron and steel foundries, on the
other hand, showed a further increase, and in the case of steel castings
the rate of output is higher than in 1928, though still much lower than
last year. Following a marked increase in September, activity in the
transportation equipment group turned downward, though it was still above
the rate prevailing two years ago. Among lines included in this industry
only ship and boat building showed a further gain in production. Prices
of iron and steel and their products, while showing some weakness, remains
practically unchanged from a month ago, although steel scrap quotations
are lower.
The textile industry showed more than the usual rate of advance from
the exceptionally low point in July, although present activity still remains,
with a few exceptions, the lowest since 1924. The most pronounced seasonal
improvement in October occurred in silk manufactures, knit underwear,
and hosiery. Operations of carpet and rug mills also showed a further
gain, though the present rate continues unusually low when compared with
other years. Cotton and wool manufactures, after increasing in September,
eased off slightly in October, even though mill takings of raw fibers
showed a slight gain. Textile prices continue to exhibit weakness, owing
largely to recessions in the wool group in the first three weeks of November.
Silk and cotton fibers, on the other hand, have advanced slightly since
the middle of last month.
Activity in the food industry has moved downward, as is to be expected.
The decline in production during October was due chiefly to curtailed
operations in sugar refining and canning and preserving industries. But
animal slaughterings increased noticeably. The daily output of manufactured tobacco and cigars increased seasonally, but continued below
the volume of recent years.
Daily production of shoes declined sharply in this district as in the country, so that the index stood lower than in any October since 1925. Wholesale prices of shoes have declined further, continuing the downward trend
from the high level in 1928. The hide and skin market has slackened
considerably and quotations show widespread weakness.
The paper and printing industry, while increasing a little further in
October, failed to rise as much as it usually does in that month. This
was due to smaller expansion in printing and publishing than at the same
time in other years, since paper and wood pulp production increased almost
as much as was to be expected.
Productive activity of building materials, including the output of cement,
brick, lumber and planing mill products, fell off more sharply than is
customary, reflecting continuous dullness in construction and contracting.
Daily production of electric power did not increase as much as usual
reflecting industrial conditions. The use of electrical energy by industries,
when seasonal changes are eliminated, showed a slight gain in October,
although the rate of consumption so far this year has been materially
lower than in the past five years.
Manufacturing Conditions in Chicago Federal Reserve
District-Mid-West Distribution of Automobiles.
A slight increase in the mid-west distribution of automobiles at wholesale in October is indicated in the following
which we quote from the Nov. 29 issue of the "Monthly
Business Conditions" report of the Federal Reserve Bank of
Chicago.
October production of passenger automobiles In the United States totaled
the lowest for that month in any year on our records (since 1921). The
aggregate of 112,209 declined 38% from September and compared with
318,462 produced in the same month last year. Truck output totaled
37,244 in October, showing a recession of 11% from the preceding month
and a decline of 39% from October 1929.
Mid-west distribution of automobiles at wholesale during October increased slightly in the aggregate over September, in contrast to a decline
shown for the same period last year, but the gain was entirely due to sales to
dealers of new models in one cr two makes of cars. The recession from the
preceding month in retail sales averaged about the same as during the
same period last year. No improvement was Indicated in the comparison
with the corresponding month of 1929. Stocks of new cars in dealers'
hands continued to be reduced in number and those held at the end of
October represented only a little more than half the volume of the same
date a year ago. Sales of used cars declined in October from September and
stocks increased very slightly. About 50% of the new cars sold by 30 retail
dealers in October were sold on the deferred payment plan, which is about
thesame average as for September and compares with 52% for last October.
MIDWEST DISTRIBUTION OF AUTOMOBILES.
Changes in October 1930from previous months.
Per Cent Change Frorn
Sept. 1930.
New cars:
WholesaleNumber sold
Value
RetailNumber sold
Value
On hand Sept. 30Number
Value
Used cars:
Number sold
Salable on handNumber
Value
Companies Included
Oct. 1929. Sept. 1930. Oct. 1929.
+0.6
+5.9
-54.1
-54.0
24
24
23
23
-9.2
-11.9
-45.9
-44.7
51
51
50
50
-2.9
+0.3
-46.2
-39.3
52
52
51
51
-12.3
-29.9
52
51
+0.8
+1.2
-22.8
-34.5
52
52
51
51
Furniture manufacturing conditions in the District are
!surveyed as follows by the Bank:
Production by furniture manufacturers in the Seventh District again
slowed down, though only slightly, during the month of October as new
orders fell off more than 20% from the preceding month, comparing with
declines of 4 and 9%, respectively, over the same period of 1929 and the
1927-1928-1929 average. Aggregate shipments were a little higher than
those of September, following the comparatively heavy ordering of that
month, but the increase was not of seasonal proportions. They were,
however, one-third higher than new orders so that unfilled orders declined
sharply to a low point at the close of October, standing at only 50% of
orders booked during the month. As compared with last year, both new
orders and shipments were little more than half the October 1929 aggregates, although production was maintained at about two-thirds the year
[VOL. 131.
ago rate of89% of capacity. From the first of the year to date, cumulative
shipments now total 62% of the 1929 volume for the same 10 months.
Industrial Conditions in Chicago Federal Reserve
District-Decline Shown in Employment and
Wages.
From the "Monthly Business Conditions Report" of the
Federal Reserve Bank of Chicago, issued Nov. 29, we take
the following with regard to industrial employment conditions in the district:
Declines from a month previous in number of employees, ranging from
10% to less than 1%, were reported for October in nine manufacturing
and two non-manufacturing groups of this district, and corresponding
declines in payroll amounts, though in goner)1 slightly smaller, occurred
In all except two of these groups. The large decline in the vehicles group
Is accounted for by reduced employment in railroad car and repair shops,
and by a continuance of the restricted rate of operations in the automobile
industry. Employment in most of the important food industries declined,
Including canning, in which the season of greatest activity is past, and also
ice cream, manufactured ice, beverages, and dairy products. The textile
group in Wisconsin recorded an Increase over September, but this was
more than offset by declines at Illinois clothing factories. Seasonal contraction took place in the stone, clay, and glass products group. Smaller
employment was shown for boot and shoe manufacturing and for the
leather products group as a whole. The total for reporting lines of manufacturing employment in October represented less than 80% of the figures
for October 1929, in which month the subsequently continuous decline
began, while payroll amounts were approximately 70% of the figures for
a year previous. Non-manufacturing groups continued the trend shown
In September,further increases occurring In coal mining and merchandising,
while construction and the utilities recorded declines. The ratios of applicants to jobs available, as recorded at free employment offices in Illinois
and Indiana. were higher in October than in any previous month this
year; in Iowa the ratio was only slightly below the high point of last
February; in Wisconsin the highest 1930 ratio was in September. In
Illinois, of the 15 cities included. Chicago and seven others showed increased ratios, while in Wisconsin six cities indicated a reduced labor
surplus, although Milwaukee and three other cities showed a greater
excess ofsupply over demand than in September.
REGISTRATIONS PER 100 POSITIONS AVAILABLE AT FREE
EMPLOYMENT OFFICES.
Month,
1930-October
September
1929-October
September
Illinois.
Indiana.
Iowa.
Wisconsin.
278
230
147
136
202
184
107
107
331
312
216
209
178
188
128
117
EMPLOYMENT AND EARNINGS-SEVENTH FEDERAL RESERVE
DISTRICT.
Week of Oct. 151930.
Industrial Group.
No. of Number
of
Reporting
Wage
Firms Earners.
Metals and products a
Vehicles
Textiles and products
Food and products
Stone, clay and glass
Lumber and products
Chemical products
Leather products
Rubber products b
Paper and printing
Earnings.
Per Cent Changes
from Sept. 15.
Wage
EarnEarners. trigs.
540
73
134
332
115
239
226
69
8
255
163,918
27,841
26,719
47,806
12,339
24,741
10,434
16,192
3,380
33,019
84,378,000
734,000
527,000
1,218,000
332,000
525,000
273,000
309,000
54,000
089,000
1,991
366,389
$9,339,000
-2.9
-2.2
171
79
36
197
30,835
94.551
9,291
13,937
$799,000
3,168.000
251,000
413,000
+1.9
-1.6
+7.1
-4.8
+1.2
-1.5
+16.3
-8.9
483
148,614
$4,629,000
-0.7
-0.9
Total, 14 groups
2,319 515.003 813,968,000
-2.3
•Other than vehicles. b Wisconsin only. c Illinois and Wisconsin.
-1.8
Total mfg., 10 groups
Merchandising c
Public utilities
Coal mining
Construction
Total non-mfg., 4 groups
,
-10.1
-0.6
-0.1
+4.2
-0.2
-4.4
-8,1
-9.2
-1.4
+2.5
+5.7
-1.5
+4.0
-1.5
Falling Off in Wholesale and Retail Trade in Kansas
City Federal Reserve District-Improved Crop
Conditions.
Surveying agricultural and business conditions in its district, the Federal Reserve Bank of Kansas City has the following to say in its December 1 Monthly Review:
Conditions for livestock and late crops in this District improved between
October 1 and November 1 due to the mild, fair weather and well distributed
rains. Cattle and sheep, in the range areas, were reported in good flesh
and the ranges in good condition with sufficient feed for winter needs in
most localities.
November 1 crop reports for the District, while disclosing some effects
of the drouth, indicated slightly larger crops of corn, cotton, sugar beets
and white potatoes than was indicated one month earlier. Cotton picking
and sugar beet harvest made rapid progress during October and at the end
of the month vim largely completed. Cotton gins and sugar refineries
operated at capacity during the month.
Trade in the Tenth District, as measured by dollar sales of 88 department stores and the combined sales of representative wholesale firms, for
the 27 trading days of October averaged less than 1% under that for the
25 trading days of September. Department store trade in October was 4.1%
less and wholesale trade, five lines combined, approximately 10% less than
in October 1929. Stocks of merchandise at both wholesale and retail were
larger on October 31 than on September 30, but smaller than a year ago.
Collections improved during October but were less than in October 1929.
There was a resumption of building activity during the month, the number of permits issued in 18 cities being the largest for any month since
April and their estimated value the largest for any month since May.
Building contracts awarded in the District were 62.9% larger than the
September awards and 3.7% larger than awards in October 1929. However,
DEC. 6 1930.]
awards for residential construction were the smallest for any October on
five years' records.
Arrivals of all classes of grain in October, at the primary markets in the
District, were smaller than in September, and the month's receipts of
wheat, rye and kafir were the smallest for any October since 1926.
Market receipts of all classes of meat animals, except calves, were
smaller than in October 1929. Compared to September, there was an
increase in the receipts of cattle, calves and hogs, and a decrease in the
receipts of sheep.
There was a decrease in meat packing operations during the month, the
slaughter of all classes of meat animals, except hogs, being smaller than in
September. The October slaughter of cattle was the smallest and of sheep
the largest in any October on 12 years' records.
Production of flour, coal, cement, petroleum, zinc ore and lead ore was
lees in October this year than in October 1929, but with the exception of
cement, the October total exceeded the September total. Flour mills
operated at a lower rate of capacity and produced less flour than in any
October since 1925. Coal mining increased seasonally over September, and
cement production displayed more than the usual seasonal decrease from
the preceding month. There was a further reduction during the month in
the daily average production of crude oil, the October daily average being
the smallest for any month since November 1926.
There were further price declines during the month in wheat, corn,
oats, flour, crude oil, zinc ore, and lead ore. Cattle and sheep prices were
generally higher at the close of October than one month earlier, but
substantially under those of a year ago, for all classes. Hog prices declined
seasonally during the first two weeks of November.
Further details of retail and wholesale trade are supplied
as follows by the Bank Trade:
The dollar volume of goods sold at retail at 38 reporting department
stores in Tenth District cities in October was 7.2% larger than the September volume, but 4.1% smaller than the volume for October 1929. Fifteen
of the 38 stores reported increases in their October sales over October 1929,
the other 23 stores reporting decreases.
The accumulated sales of the reporting department stores for the year
to Nov. 1 were 4.2% smaller than for the like period in the preceding
year.
Stocks of merchandise at department stores on Oct. 31 were 6.0% larger
than on Sept. 30, but 7.3% smaller than on Oct. 31 1929.
Wholesale.
The volume of wholesale trade in this district, indicated by the aggregate
dollar value of sales reported by firms engaged in five lines of merchandising, was approximately 4% larger than in September, but approximately
10% smaller than in October last year. By separate lines, the reports
showed October sales of groceries, hardware and drugs were larger and
sales of dry goods and furniture smaller than in September. Compared to
October, last year, there was a decrease in sales for all lines, except
groceries.
Each of the five wholesale lines reported the dollar value of their stocks
on Oct. 81, this year, was less than on the same date last year, and groceries
was the only one of the five lines to report an increase in Its stocks over
those of Sept. 30.
Collections.
The composite figure on percentage of collections at 38 department stores
during October on accounts outstanding Sept. 30 was 40.5% as compared
with 36.7% for September and 41.4% for October last year. Each of the
five reporting wholesale trade lines reported increases in collections over
the totals for September, but hardware was the only line to report larger
collections in October this year than in October 1929.
were respectively 194,904.000 feet and 252,888,000; and orders received
199,387,000 feet and 217,342,000. In the case of hardwoods, 193 identical
mills reported production last week and a year ago, 19,598.000 feet and
34,547,000; shipments 19,703,000 feet and 29,996,000; and orders 16.296.000 feet and 22,846,000.
West Coast Movement.
The West Coast Lumbermen's Association wired from Seattle the following new business, shipments and unfilled orders for 228 mills reporting for
the week ended Nov. 29:
SHIPMENTS.
UNSHIPPED ORDERS.
NEW BUSINESS.
Peet.
Feet.
Feet.
Coastwise and
Domestic cargo
Domestic cargo
delivery _ _ _ 50.358,000 delivery_ _ _206,283.000 intercoastal__ 46.981,000
17,142,000
111,313,000 Export
15,584,000 Foreign
Export
30.780,000
86,680,000 Rail
30,578.000 Rail trade_ _
By rail
9,671,000
Local
9,671,000
Other
104,573,000
404,276,000 Total
106,191,000 Total
Weekly capacity of these 228 mills is 251,587,000 feet. Their actual
production for the week was 102,018,000.
For the 47 weeks ended Nov. 22, 139 identical mills reported orders
4.3% below production, and shipments were 1.0% below production.
The same mills showed an increase in inventories of 5.3% on Nov. 22,
as compared with Jan. 1.
Total
Southern Pine Reports.
The Southern Pine Association reported from New Orleans that for 141
mills reporting, shipments were 17% above production, and orders 17%
above production and about the same as shipments. New business taken
during the week amounted to 46,998,000 feet (previous week 43,932,000 at
148 mills); shipments 46,977,000 feet (previous week 43,050.000), and production 40,092,000 feet (previous week 46,080,000). The three-year
average production of these 141 mills is 68,723,000 feet. Orders on hand
at the end of the week at 125 mills were 97,839,000 feet. The 130 identical
mills reported a decrease in production of 28%, and in new business an
increase of 5%, as compared with the same week a year ago.
The Western Pine Manufacturers Association, of Portland, Ore., reported production from 92 mills as 19.994,000 feet. shipments 24,486.000
and new business 22,952,000 feet. Sixty-five identical mills reported a
decrease in production of 47%, and a decrease in new business of 24%,
when compared with 1929.
The California White & Sugar Pine Manufacturers Association, of San
Francisco, reported production from 24 mills as 12,374.000 feet, shipments
16,200,000 and orders 15.161.000 feet. The same number of mills reported a decrease in production of 53%. and a decrease in orders of 6%.
in comparison with last year.
The Northern Pine Manufacturers Association, of Minneapolis, Minn.,
reported no production from 7 mills, shipments 2.024.000 and new business 1,627,000. The same number of identical mills reported new business
24% less than that reported for the corresponding week of 1929.
The Northern Hemlock and Hardwood Manufacturers Association, of
Oshkosh, Wis., reported production from 15 mills as 1,427,000 feet, shipments 1,037.000 and orders 686,000. The same number of mills reported
production 41% less, and orders 48% less, than that reported a year ago.
The North Carolina Pine Association, of Norfolk, Va., reported production from 95 mills as 6.047,000 feet, shipments 7,869.000 and new business
5,786,000. Forty-five identical mills reported a decrease in production of
39%,and a decrease in new business of 35%,when compared with last year.
The California Redwood Association, of San Francisco, reported production from 12 mills as 4,735,000 feet, shipments 4,479,000 and orders 4.854.000. The same number of mills reported a decrease in production of 38%.
and an increase in orders of 6%. in comparison with 1929.
Low Lumber Production Marked Thanksgiving Week,
Curtailed softwood lumber production marked Thanksgiving week. Combined hardwood and softwood orders
exceeded the cut by 6%, though hardwood orders were considerably under the hardwood cut, it is indicated in reports
to the National Lumber Manufacturers Association from
850 leading hardwood and softwood mills for the week ended
Nov. 29. Combined shipments were reported as 10% in
excess of a total production of 209,852,000 feet. A week
earlier 870 mills gave both orders and shipments 2% under
a total out of 235,717,000 feet. For the year ago equivalent
of the latest week,834 mills reported production 335,127,000
feet; shipments 309,168,000 feet and orders 258,518,000 feet.
Identical mills reporting for both years gave: softwoods, 481
mills, production 38% less; shipments 23% less and orders
8% less than for the week in 1929; for hardwoods, 193 mills,
production 43% less, shipments 34% less and orders 29%
under the volume for the week a year ago.
Lumber orders reported for the week ended Nov. 29 1930,
by 614 softwood mills totaled 204,255,000 feet, or 9% above
the production of the same mills. Shipments as reported
for the same week were 207,645,000 feet, or 11% above
production. Production was 186,687,000 feet.
Reports from 251 hardwood mills give new business as
18,563,000 feet, or 20% below production. Shipments as
reported for the same week were 22,958,000 feet, or 1%
below production. Production was 23,165,000 feet.
Unfilled Orders.
Reports from 493 softwood mills give unfilled orders of 722,584,000 feet,
on Nov. 29 1930, or the equivalent of 14 days' production. This is based
upon production of latest calendar year-300-day year-and may be compared. with unfilled orders of 513 softwood mills on Nov. 22 1930. of 735,465.000 feet, the equivalent of 14 days' production.
The 374 identical softwood mills report unfilled orders as 681,775,000
feet, on Nov. 29 1930, as compared with 924,928,000 feet for the same
week a year ago. Last week's production of 481 identical softwood mills
was 172,920,000 feet. and a year ago it was 277,553.000 feet; shipments
3617
FENTANCIAL CHRONICLE
Hardwood Reports.
The Hardwood Manufacturers Institute, of Memphis. Tenn., reported
production from 236 mills as 21,583,000 feet, shipments 21,168.000 and
new business 17,214,000. Reports frem 178 mills showed adecrease in
production of 44%, and a decrease in new business of 30%. when compared with a year ago.
The Northern Hemlock and Hardwood Manufacturers Association, of
Oshkosh, Wis.. reported production from 15 mills as 1,582,000 feet, shiprements 1,790,000 and orders 1,349,000. The same number of mills
ported a decrease in production of 37% and orders the same,in comparison
with last year.
CURRENT RELATIONSHIP OF SHIPMENTS AND ORDERS TO PRODUCTION FOR THE WEEK ENDED NOV. 29 1930 AND FOR 48
WEEKS TO DATE.
Association.
Producnon,
M Ft.
Shipmews,
M Ft.
P. O.
P. C.
of
Orders,
of
Prod. M Pt. Prod.
Southern Pine46,998 117
46,977 117
40,092
Week-141 mill reports
2,572,800 2,438,415 95 2,396,763 93
48 weeks-6.805 mill reports
West Coast Lumbermen's106,191 104
104,573 103
102,018
Week-228 mill reports
6,731,381 6,573,384 98 6,571,698 98
48 weeks-10,592 mill reports
Manufacturers
Pine
Western
22,952 115
24,486 122
19,994
Week-92 mill reports
1,897,582 1,755,447 93 1,697.571 89
48 weeks-4,416 mill reports
California White & Sugar Pine
15,161 123
16,200 131
12,374
Week-24 mill reports
011,666 103
887,334 929,069 105
48 weeks-1,167 mill reports
Northern Pine Manufacturers1,627
2.024 ___
Week-7 mill reports
174,444 88
180.205 91
198,322
48 weeks-361 mill reports
No.Hemlock&Ilardwood(softwoods)
686 48
1,037 73
1,427
Week-15 mill reports
91,425 68
134,074 102,759 77
48 weeks-1,457 mill reports
North Carolina Pine5,786 06
7,869 130
6,047
Week-95 mill reports
330,982 84
396,163 412,003 104
48 weeks-5,132 mill reports
California Redwood4.854 103
4.479 95
4,735
Week-12 mill reports
290,667 92
289,237 91
316,700
48 weeks-686 mill reports
Softwood total204.255 109
186,687 207,645 111
Week-614 mill reports
13,134,356 12.680,520 97 12,465,216 95
48 weeks-30.610 mill reports
Hardwood Manufacturers Inst.17,214 80
21,168 98
21,583
Week-233 mill reports
1.492,273 1,378,880 92 1,326,493 89
48 weeks-12,269 mill reports
Northern Hemlock & Hardwood1,790 113
1.349 83
1,582
Week-15 mill reports
195.327 69
281,408
156.121 55
48 weeks-1,457 mill reports
Hardwoods total23,165
22,958
Week-251 mill rePorts
48 weeks-13,726 m111 report8-. 1,773,681 1,574,207
99
89
18,563
1.482,614
80
IA
Grand total230.603 110
209,852
222,818 106
Week-850 mill rePortg
48 weeks-42,885 mill reports- 14,908,037 14,254,727 96 13,947,830 94
3618
FINANCIAL CHRONICLE
Automotive Parts and Accessory Shipments Holding
Up Favorably.
Operations in the parts-accessory industry are holding up
in a favorable manner, according to the Motor and Equipment Association, and October business of makers of accessories and parts for the replacement trade actually ran
ahead of September. Approximately the same rate of activity has been maintained this month. Suppliers of original
equipment to the car and truck makers reported October
shipments only slightly below September. The Association's
report Nov. 28 also says:
The existence of a favorable volume of service business in the garages
and repair shops is indicated further in the sharp gain in sales registered
by M. E. A. wholesalers in October. The grand index of sales for the group
of member wholesalers reporting to the Association jumped from 120% in
September to 155% in October. Sales were higher in September in eleven
of the twelve Federal Reserve Districts in this country and were also heavier
in Canada.
The grand index of shipments for all groups of manufacturer members
reporting their figures to the Association in October stood at 86% of the
January 1925 base index of 100 as compared with 89 in September, 91 in
August and 156 in October a year ago. Reports by divisions, of member
manufacturers business in October follows:
Parts-accessory makers selling their products to the car and truck makers
for original equipment made shipments aggregating 75% of the 1925
January base as compared with 79 in September, 87 in August and 160 in
October 1929.
Shipments to the trade by makers of service parts were 140% of the
January 1925 base as compared with 139 in September, 132 in August and
166 in October 1929.
Accessory shipments to the trade in October were 79% of the 1925 base
as compared with 76 in September, 60 in August and 91 in October last year.
Service equipment shipments, that is, repair shop machinery and tools,
in October were 99% of the 1925 base as compared with 105 in September,
104 in August and 147 in October a year ago.
(VOL. 131.
Number of Employees of Chain Stores for Third
Quarter Exceeds Corresponding Period in 1929—
Wages Also Increase Despite Business Depression.
In spite of the general business depression, chain store
employees have increased in number :n the first nine months
of 1930, compared with the 1929 period, and their total
wages have risen, according to an analysis issued to-day by
Merrill, Lynch & Co. Number of employees and tatal
wages, as reported by 18 companies, compare as follows:
Employees.
1930
1929
Increase_
Wages.
1st Qua?.
2d Qua?.
3d guar.
75,715
68,713
78,916
71,590
77,861
74,065
$21,536,567 $23,030,061 $23,119,115
18,407,042 20,183,507 21,510,265
7,002
7,326
3,796
$3,129,525 $2,846,554 $1,608,850
1st Quar.
2d guar.
3d QUO?.
Five companies reporting wages paid but not number
of employees showed total wages of $37,117,330 for the nine
months, against $34,064,738, a gain of $3,052,592.
Court of Claims Recognizes Actions Against Government—Reinstates Suits of 45 Cotton Mills.
From Washington the "Wall Street Journal" of Dec. 1
reported the following:
The Court of Claims reinstated petitions of 45 cotton mills in the South
in which the government is sued for sums aggregating $660,000 as a result
of contracts signed at the outbreak of the World War to use the output of
the mills at a stabilized price. Contracts were to run from September
1918, to June 1919, but after January 1919, the government is charged with
having failed to live up to the contracts.
The 45 cases were dismissed some time ago. The Court of Claims, however, awarded judgment to the Hazelhurst Oil Mill & Fertilizer Co. in
June of this year in a suit embodying similar conditions.
Altogether there are more than 300 cases involving approximately
$5,000,000 now before the Court of Claims in which the government is
being sued for losses sustained by the cotton mills as a result of the wartime agreement.
Reported Closing of Rubber Estates in Sumatra.
The New York "Times" reported the following from
Amsterdam, Nov.26 (Associated Press):
Cotton in World Markets
The newspaper "Handelsblad"says it has been informed by a "prominent Consumption of American
Running Below Last Season According to New
well-known business man in the rubber-growing trade" that five big French
rubber estates in Tapanoeki, on the west coast of Sumatra, are closing
York Cotton Exchange Service.
for two years. All coolies have been dismissed and repatriated to Java
World consumption of American cotton, after increasing
with the exception of 100 or 200 on each estate. The newspaper says this
means a reduction of about 1,800.000 kilograms annually in rubber ex- from August to September, increased further during October,
ports from the Dutch East Indies.
but it continued to run far below that in the corresponding
period last season, according to the New York Cotton
Exchange Service. It is pointed out that the world used
No Concrete Rubber Plan Prospect.
From the "Wall Street Journal" of Nov. 20 we quote the approximately 969,000 bales of American cotton in October,
compared with 892,000 in September,835,000 in August, and
following Amsterdam advices:
New York rumors concerning new plans of Dutch rubber producers for approximately 1,313,000 in October last season. In the three
a restriction scheme with the co-operation of the government are authori- months from Aug. 1 to Oct. 31, constituting the first quarter
tatively contradicted here. The rumors originated in the re-election of the of the cotton season, the world used about 2,696,000 bales
Dutch Rubber Committee last Monday, which had only formal significance.
of the American staple this season against 3,638,000 in the
The feeling here is that nothing concrete can be done at the moment.
same period last season. The Exchange Service under date
of Dec. 2 also says:
Shipments of Crude Rubber from Dutch East Indies
The returns from individual countries continue to indicate that consumption of American cotton is running below last season in all of the principal
in October.
divisions
of the spinning industry. The United States consumed only
Shipments of crude rubber from the Dutch East Indies
427.000 b Lies
October this season compared with 609,000 last season,
for October totaled 19,533 tons, against 20,240 tons shipped Great Britain in
77,000 against 163,000. the Continent of Europe 340,000
in September, according to cables to the Rubber Exchange against 400,000. the Orient 109,000 against 122,000, and minor countries
16.000 against 19,000. In the three months ending Oct. 31, the United
of New York on Nov. 26. East Coast Sumatra was the St
tes used only 1,146,000 bales this season against 1,659,000 last season,
largest shipper in October with a total of 7,068 tons, against Great Britain 217,000 against 370.000. the Continent 976,000 against
6,765 tons in September, Java and Modoera ranking second 1,203.000, the Orient 315,000 against 352.000, and minor countries 42,000
against 54.000. On the Continent, consumption is running considerably
with 6,011 tons last month, as compared with 6,056 tons for lower
than last season in France. Russia, It ly, Czechoslovakia, and Spain.
September.
It is running close to last season, however, in Germany, Holland, and
Poland.
Tire Manufacturers Said to Plan Full Resumption of
Milk to Drop One Cent a Quart on Dec. 8
Operations in January—Brief Suspension in
A
reduction
of one cent a quart for milk distributed in
Akron, Ohio, Over Thanksgiving Holiday.
the
metropolitan
area will become effective beginning Monis
manufacturers,
it
The inventory position of the large tire
day, Dec. 8, it was learned on Dec. 4 says the New York
said, has been brought down to a basis allowing resumption
"Times" from which we also take the following:
of full operations during the first week in January, according
This will cut more than $1,000,000 a month from the food bill of
to advices to members of the Rubber Exchange of New city consumers, it was said.
Following an announcement by the Dairymen's League that wholesale
York. It is also stated:
There is actually a shortage in stocks of some sizes of tires. The B. F. milk prices would be lower by 47 cents per 100 pounds beginning Mon.
Goodrich Co. has increased its working forces this week following receipt day, heads of Borden's Farm Products Company and the Sheffield Farms
of a lirge order from a national tire distributing system. Production by the Company said they would promptly pass the saving on to the consumer
United States Tire Co. at Detroit is being gradually increased. and the by lowering bottled milk prices a cent a quart. There also will be a
daily output is now around 25,000 tires as compared with 15.000 during the reduction in the cost of loose milk to consumers, it is expected, as the
Dairymen's League announced that next week the wholesale price of a
summer months.
Firestone is maintaining production at an unchanged pace, while Good- 40-quart can of milk would be $4 instead of $4.40.
Hard times and unemployment have led to decreased milk consumption,
year Tire & Rubber Co., now operating at a reduced daily rate, plans to
resume operations at full capacity to meet spring delivery demands after and B. S. Halsey, Vice President of Sheffield's, declared last night that
milk distributers "are very pleased to help those who are feeling the
the first of the year.
pinch of economic distress by selling milk more cheaply." There has
From the New York "Times" of Nov. 27, we take the not
been any decline in the production and distribution costs of milk
following:
since last Summer, when it was deemed necessary to increase milk prices
here
a penny a quart "because of drought conditions," it was explained.
The General Tire and Rubber Co. will suspend the operation of its plant
The reduced milk price in this city will lessen the return to dairy
for the Thanksgiving holiday and will not re-open until Dec 1, it was
reported from Akron yesterday. The company's fiscal year ends Nov. 30 farmers of the New York Milk Shed by approximately $1,000,000 a
month, officials of the Dairymen's League said. They pointed out that
and the shut-down will be for inventory.
All other Mints of the various rubber companies in Akron will close for whereas the increase in wholesale milk prices last August was 37 cents
the holiday and the majority will curtail operations during the remainder for 100 pounds, the present decrease is 47 cents for 100 pounds. There
of the week.
are approximately forty quarts of milk to each 100 pounds.
DEC. 6 19301
FINANCIAL CHRONICLE
"If this reduction is passed on to the consumers it will mean a retail
price of 15 cents a quart for Grade B bottled milk," the league announcement said.
The estimated milk consumption in the metropolitan area is 3,500,000
quarts a day. The cent a quart reduction therefore means a daily saving to city consumers of $35,000.
3619
It was also learned that the shutdown will effect the Gotham plant
in Philadelphia and the plants operated for the company on Long Island
and in Northampton, Mass.
The following statement was given out at the New York offices of the
Gotham company to-day:
"Mr. S. C. Siunmerfleld, President of the Gotham Silk Hosiery Co.,
In confirming his statement to the press of a few days ago, that immediate
curtailment of production was necessary to remove the accumulation of
stocks,in the industry that has forced manufacturers to operate on the basis
of low prices and low wages, stated that some of the departments of the
company's plants at Dover and Wharton would begin closing Dec. 6 and
others later, and will not reopen before Jail. 5."
Rug Market Upset by Sharp Reduction-BigelowSanford List Causes Withdrawal of Early Prices
at Spring Opening-Cut Runs from 10 to 30%.
A state of confusion unique in the floor coverings market
prevailed in New York on Dee. 1 at the opening of spring Diamonds to Stay Low-Huge Stocks Held in Europe
Keep Prices Down.
rug and carpet lines to the trade, said the New York "Times"
Associated Press advices from Washington, Nov.21,in the
of Dec. 2, the account further stating:
piThe Bigelow-Sanford Carpet Co., Inc., announced price reductions New York "Evening Post" said:
which ranged from 10 to 30% and caused earlier prices to be withdrawn.
For the prospective bridegroom, at least, one shaft of sunshine has filtered
A majority of the producers held up new quotations.
through the business depression.
W. & J. Sloane, selling agents for the Alexander Smith & Sons Carpet
Indications are that prices of diamonds will remain at relatively low levels.
Co.; C. H. Masland & Sons, Inc., and the Barrymore Seamless Wiltons, The Department of Labor has been told that authorities in the diamond
Inc., first announced reductions which averaged about 10%, but these cutting industry abroad see little chance for stabilization of prices at the
were withdrawn, and new prices at the Bigelow-Sanford levels will be high levels of a few years ago.
brought out today, it was stated at the Sloane offices.
Stocks held by large European syndicates are reported to have reached
Buyers who crowded the market throughout the day marked time on huge proportions.
their orders, awaiting later price announcements. They expressed themselves as well pleased with the new levels and indicated that a volume
business could be looked for when the market has firmed on its new basis. Marshall Field & Co., Retail, Announces Silk Price
Issued Only Complete List.
The Bigelow-Sanford Co. was the only producer in the field to announce
a complete line of new prices. Mohawk Carpet Mills, Inc.; M. J. Whitten Associates, Ltd., and A. & M. Karagheusian issued partial lists, but
reserved quotations on broadloom and other carpeting until today.
Prices which in some instances were back to the 1917 basis were featured
in the Bigelow-Sanford announcement. In the carpet lines the organization made drastic cuts on broadloom products and followed these with
smaller reductions on other styles. Officials of the company pointed out
that the low quotations were "economically sound" and represented savings made possible through the merger with Stephen Sanford & Sons, Inc.
New prices on leading Bigelow-Sanford rug lines based on the 9 by 12
sizes, f.o.b. mills, with the old prices in parentheses, are as follows: Hartford-Saxony seamless, $84 ($102); seamed, $78 ($96); Beauvais axminster, $32.90 ($37.05); Fervak axminster, $26.45 ($30); Vermont velvet,
$19.10 ($21.25); Paragon velvet. $23.80 ($26.15), and Ardebil wilton,
$51 ($58.25).
The Arada sheen type rug brought out last spring at a price of $168.75
wholesale was priced in yesterday's opening at $132. New sheen type
rugs at low figures were also introduced in the line. These included
Chinari priced at $90 in the 9 by 12 size, the Simla priced at $84 and the
Samaran priced at $72.
The largest reductions were made in the odd rug sizes in all lines. These,
in many instances, were down as much as 30% from the previous season.
Price changes in carpets were as follows, with the wholesale price for
three-quarter sizes taken as the basis: Brewster broadloom, $2.85 ($3.45);
Ritz Royal Velvet, $2.90 ($3.30), and Bigelow Newport broadloom,
$2.30 ($2.85).
Mohawk Drop Averages 10%.
The Mohawk prices showed a drop averaging close to 10%. Quotations
on leading axminster seamless rugs on a 9 by 12 basis were announced as
follows: Aristo fringed, $36.45, a new product: Mohawk, $31.15 ($35);
Amsterdam, $26.45 ($30); Victory, $20.60 ($24.40): Victory mottled.
$17.35 ($18.55).
Velvet and tapestry rugs in the 9 by 12 size were: Norwood. $21.75
($24.40); Gotham, $17.35 ($19.40); Sagamore, $16.20 ($17.95), and Lincoin, $12.95 ($14.40).
Wilton seamless rugs at the new prices included the Royal Akbar wool,
priced at $52.90 and the Royal Araby priced at $46.45. both new styles.
The Imperial Karnak worsted, formerly priced at $92.85, was listed at
$76.40 and the Karona was reduced from $75.20 to $67.60. The Royal
Caliph, a new American Oriental, was priced at $96.95 and the Viceroy,
another Oriental, was listed at $69.65, as against a former price of $76.40.
A. & M. Karagheusian left prices on the Gulistan and Amkara rugs
unchanged. They featured, however, a new sheen type rug to compete
with the better type asaninster. It will sell at $59 wholesale and retail
at a suggested price of $75. No price changes were made by the Karastan
Rug Mills on Karastan and Karashah rugs.
M. J. Whitten Associates, Inc., announced prices on wiltons somewhat
lower than those of last season, but stated that further announcements
covering their lines would be made later in the week.
Confusion caused by changes in the zoning system in the hard surface
field was responsible for delays in the preparation of company price lists
yesterday. Many of the organizations had only partial lists ready and
others lacked even mesa. Those in the trade expressed the belief that
linoleum prices would show only slight reductions while in the low-end
felt base field the list prices would be higher.
Cuts.
Special advices from Chicago, Dec. 2, to the New York
"Journal of Commerce" state:
Beginning to-day Marshall Field & Co., retail, have stated in press paper
announcements that "due to the reduced prices on raw silk we announce
new low prices on these well-known silks." Included in the new prices are
the silks Beau Monde from Field's own looms, and other national brands
include such items as Mirror Crepe. $4.50 a yard; P`rost Crepe, $3.50;
Krisal Crepe,$2.45; Crepe Renee,$3,50; Crepe Mogul,$4; Crepe Elizabeth,
$4.50; Crepe Cabelet, $2,95; Field Crepe. $1.75; Douchett, $2, and plain
Pussywillow, $2.95.
Tne statement appended is; "We feel reductions in prices such as these
deserve immediate announcements to our patrons. The price amendments
include a much larger group than the silks mentioned." The three-column
ad, three-quarters of a page in length, has caused a great deal of comment
among the silk trade here.
Plant of Shredded,Wheat Company at Niagara Falls
Returns to Six-Day Week.
Associated Press advices from Niagara Falls (N. Y.)
Nov. 29 said:
The Shredded Wheat Co., a subsidiary of the National Biscuit Co..
announced to-day that its plants here, which have been working five days
a week, started on a six-day schedule to-day. Officials said that 500 hands
were affected by the change, and that the increased working schedule
would continue for a month and possibly longer.
St. Louis Union Shoe Workers Agree to Compromise
Proposed Wage Cut.
Four thousand union shoe workers employed in eight St.
Louis factories have agreed to accept a wage reduction of
123 % as a compromise to a demand by manufacturers for a
20% decrease in an effort to stimulate business, provide
more employment and meet competition, it was announced
on Dec. 3 by union officials, according to Associated Press
accounts from St. Louis which further said:
The union offer has been taken under advisement by the St. Louis Shoe
Manufacturers' Association, members of which are reported divided on
the question of acceptance.
Egg Prices at Low Mark of Season.
From the New York "Times" we take the following
(Associated Press) from Kansas City, Dec. 3:
Egg prices reached the lowest level for this season in the records of local
dealers to-day. Case lots sold at 23 cents a dozen, but retail prices generally
did not reflect the decline. Retail prices were 21 cents for some storage
offerings to 48 cents for the best fresh eggs. Dealers attributed the decline
chiefly to pressure of large supplies in storage.
Amoskeag Mills to Contribute to Unemployed-8,000 Union Ends Reading, Pa., Hosiery Strike-Urges MillWorkers' Weekly Sums to Be Matched by Company.
men to Correct Conditions.
The following Associated Press advices from Manchester,
From Reading, Pa., advices to the New York "Journal
N. H., Nov. 29 are from the New York "Times":
of Commerce" Nov. 28 said:
Between 8.000 and 9.000 operatives of the Amoskeag Mills inaugurated
With union leaders issuing a statement that the action was being taken
to-day a ten-cent weekly contribution to aid unemployed fellow-workers. so as "not to aggravate the unemployment crisis, and because wage inmatching the money
creases in one form or another have been obtained in many mills and proposed reductions halted." the general strike called in 28 Reading and Barks
County hosiery mills was called off at noon to-day by a vote of 400 fullfashioned workers, meeting in Eagles Hall.
Edward F. Callaghan, Harold E. Steele and Alfred Hoffman, organizers,
Issued a statement after the meeting in which they declared that a "tremendous lesson has been learned by both employers and employees in the
recent walkout, and it is safe to predict that a steady growth of unionism
Gotham Hosiery Factory to Shut Down-800 to Be Idle, will take place in Reading's full-fashioned textile mills from now on."
Union leaders declared that they were prepared to launch immediately
A Dover N. J. dispatch Dec. 4 to the New York "Times" vigorous
membership campaign. They declared that another and greater
a
said:
walkout impends in the very near future unless manufacturers take stelae
The knitting departments of the Gotham Silk Hosiery Co. plants here "to correct conditions which brought about the present stoppage."
Officials of the union declared that the strike had the effect of improvand at Wharton will shut down Saturday, throwing 800 workers, the majority of them women, out of employment, it was learned on reliable au- ing the hosiery market. Mill owners to-night had no comment to make on
A
total
of
persons
about
1,000
are
here
to-day.
thority
employed at the the calling off of the strike, or what would be done about reinstating striktwo plants.
ing employees.
raised by the employees
The management of the mills is
dollar for dollar.
The money is to be taken from pay envelopes each week to be distributed by the relief committee of the "plan for employee representation,"
a joint organization which gives the workers a voice in the affairs of the
mills.
3620
FINANCIAL CHRONICLE
Called on Nov. 17 after announcement of substantial wage reductions
at the Berkshire Knitting Mills, a non-union organization, the strike
originally included about 2.000 Reading workers. This organization,
against which the union was directing most of its efforts, continued on
full-time basis during the whole strike, and reliable estimates placed the
number out there as negligible. The large number of workers out the
that few days of the strike was due to the closing of many of the smaller
mills which feared picketing of employees and general disorder. These
gradually reopened, however, and took up the slack in the strikers' ranks
until by the end of last week the number on strike was generally conceded
to be about 400.
Wage reductions, which were said to be general in the Reading district,
had been made after two or three years of great prosperity throughout the
whole area. The fact that knitting mills had been working on schedules
which had hardly been curtailed since the beginning of the depression had
given the workers an idea that production was readily selling and that the
finances of the companies were up to keeping wages at high levels of the
past few years. Wage reductions followed on the decline in sales of hosiery
throughout the country, the lessening value in the consumer market of the
product and the steadily mounting inventories burdening all the companies.
Inventories were said to be equal to three months' production, and manufacturers would in all likelihood not have feared a strike that would have
closed down mills for a long period.
Raw Silk Imports Declined During November-Approximate Deliveries to American Mills Lower-Inventories Also Decreased.
According to the Silk Association of America, Inc., HI1ports raw silk declined from 65,594 bales in Oct. to 55,293
bales in the month of November. The latter figure also
compares with 62,885 bales in November 1929. Approximate deliveries to American mills during November 1930
amounted to 57,333 bales as against 61,937 bales in the preceding month and 50,562 bales in the corresponding month of
last year. Raw silk in storage Dec. 1 1930 totaled 49,238
bales compared with 51,278 bales at Nov. 1 1930 and 76,452
bales at Dec. 1 1929. The Association's statement follows:
RAW BILE IN STORAGE DEC. 1 1930.
(As reported by the principal public warehouses In New York City and Hoboken.)
(Figures in Bales)European. Japan. AU Other.
Total.
In storage, Nov. 1 1930
2,752
33,864
14,662
51,278
Imports, month of November 1930_x_ 1,310
4,122
49,881
55,293
Total available during November
In storage, Dec. 1 1930_z
Approximate deliveries to American
mills during November 1930.7
4,062
2.902
83,725
34,778
18,784
11,558
108,571
49,238
1,160
48,947
7,226
57,333
SUMMARY.
Impacts During the Months
January
February
March
April
May
JUDO
July
August
September
October
November
December
Total
ANWHMA
monthly--
Storage as End of liforith.x
1930.
1929.
1928.
1930.
1929.
1928.
43,175
42,234
39.990
37,515
22.596
22,369
47,063
51.147
58.292
65.594
55,293
58.384
43.278
48.103
47.762
49,894
54.031
48,795
65.516
69.970
68,514
62,885
58,479
46.408
44,828
50,520
38.555
52.972
45.090
38.670
62.930
47.286
68,857
48.134
414.128
76,264
68,646
57,773
53.704
35,477
28,450
35.565
44.978
47,621
51,278
49,238
49,943
46.993
65.218
39.125
39.898
47.426
42.598
48,408
55,104
64.129
76.452
90.772
47.528
41.877
40,186
35.483
43.088
41.127
38.866
50.975
50,464
49.381
49,808
48.908
485,268
44.115
661.611
55.134
566.37S
47.198
49.909
63.839
44.707
Approximate Deliveries
to American Mills.,
Approximate Amount of Japan
.Silk in Transit Between Japan
and NstoYork End ofMonth.
1930.
1929.
1928.
1930.
1929.
1928.
57.683
49,852
50.863
41,584
40.823
29,396
39.948
41.734
55.649
81,937
57,333
57,349
48.228
49,878
53.856
49.121
48.504
51,624
69,706
63.274
57.489
50.562
44.159
52,420
50.879
52.011
41.258
46.367
46.051
40.931
50,821
47.797
49.940
47.709
015,0213
87,000
24.000
17,800
8.000
7.700
16,300
31,200
41,700
51.600
46,400
45,500
31.000
30.000
29,000
30,700
28.000
21,200
34,100
41,600
29.000
49.000
41,000
38.000
25.000
23.500
19.200
28.500
24,000
17.600
32,300
27.600
25,600
31,200
22.800
42,500
526,802
Total
Average monthly- 47,891
619.747
51.646
571,010
47,584
29,745
34.383
28.642
January
February
March
Aprll
May
June
July
August
September
October
November
December
x Covered by European mani eats 45 to 49, incl.: Asiatic man rests 273 to 299. Ind.
7 Includes re-exports. z Includes 1.579 bales held at terminals at end of month
Stocks In warehouses include National Raw Silk Exchange certified stocks, 2.430
bales.
[Voi... 131.
Petroleum and Its Products-Dissatisfaction with
Proration Program Appears-Prairie Oil & Gas Will
Withdraw from Mid-Continent Market Entirely on
Jan. 1-California Conservation Law Upheld.
Increasing dissatisfaction with the progress made in improving the present highly unsatisfactory conditions in the
petroleum industry on the part of many of the country's
producers is indicated in reports from theMid-Continent and
Texas areas. This development, coupled with the recent
move of the Prairie Oil & Gas Co. in entirely withdrawing
from the general crude oil market in the Mid-Continent area,
effective Jan-71-1931 and effective until further notice, adds
to the general complexity of the market picture. The
'action of the Prairie Oil &
lia
-ble to result in further
unsettlement of the Mid-Continent market, asthis company
was taking approximately 50,000 barrels a day out of the
market.
Opposition on the part of many producers to proration
plan became known on the heels of an important decision
by the Supreme Court of California upholding the constitutionality of the Lyon Act, which is the California law
governing conservation.
According to E. B. Reeser, President of the American
Petroleum Institute, this decision is of tremendous aid to
the conservation movement inasmuch as it precludes any
further attempts to evade the conservation program in
California. And, when it is remembered that California has
been consistantly running over its prorated allotment, it
is hoped that this will really aid the conservation adherents
in their efforts to force the California producers to keep
their agreement as to production.
The action of the.Prairie in withdrawing from the market
is not entirely unexpected but nevertheless it is a severe
blow to the stability of the market. It is estimated that the
company now has 60,000,000,000 barrels of crude in storage
as a result of the drop in demand in the past year, of which
a large part was bought at levels higher than those prevailing
at the present time. The expense of storing this oil, which
would be necessary as long as the company made further
purchases in the open market, is prohibitive in view of the
fact that no immediate relief may be expected.
Some of the several objections to the proration plan are;
lax methods of determining potentials in some fields as
compared with stricter methods used in others, cost of
maintaining staff of proration workers and, most important
of all the fact that it costs just as much and sometimes more,
to operate a lease that may be running on 15 or 20% of
capacity due to proration allotment as a lease that is running
unrestricted.
While many producers object to prorationing their wells
due to these reasons, they have not made any counter suggestion which would tend to have the same effect in curtailing production. For there is no doubt that production
must be kept at a level with demand or the oil industry will
suffer from further price cutting which would tend to demoralize the industry.
There were no price changes posted:
Prices of Typical Crudes per Barrel at Wells.
(All gravities where A. P. I. degrees are not shown.)
Bradford, Pa
$2.15 Spindletop, Texas, below 25
Corning, Ohio
1.25 Winkler, Texas, below 25
Cabell, W. ye
1.05 Smackover, Ark., 24 and over
Illinois
1.30 Smackover, Ark., below 2
Western Kentucky
1.15 Eldorado. Ark., 44
Midcontinent, Okla., 37
.98 Urania, La
Corsicana, Texas, heavy
.75 Salt Creek, Wyo., 37
Hutch noon, Texas, 34
.69 Sunburst, Mont
1,65 Artesia, N. Mex
Retti man Hills, 55
Kettleman Hills, 35-39.9
1.10 Santa Fe Springs, Calif., 33
Kettleman Hills, 40-49.9
1.35 Midway-Sunset. Calif., 22
Kettleman Hills. 50-54.9
1.50 Huntington, Calif.. 26
.75 Ventura. Calif. 26
Luling. Texas
Spindietop, Texas.grade A
1.00 Petrolla, Canada
3.75
.50
.70
.70
1.14
.75
.98
1.88
.75
1.48
.94
1.22
1.15
1.50
REFINED PRODUCTS-EASTERN MARKET EASY-GASOLINE WEAK
-GULF COAST EXPORT MARKET
OFF.
Flour Production in Four Weeks Ended Nov. 29 1930
Lack of any favorable developments coupled with marked
Below That of Corresponding Period in 1929.
weakness appearing in the Gulf Coast export field was reGeneral Mills, Inc., summarizes the following compara- flected in continued easiness in the refined
products market
tive flour milling activities as totaled for all mills reporting in the East. Although downward price
revisions
in the
In the milling centers as iniicated.
Southern area have been expected since the Export AssociaPRODUCTION OF FLOUR.
tion discarded, their price schedule, the price slashes had an
unsettling effect on the New York market. Due to increasProduction Production Cumulative Cumulative
4 .reeks
Same
Production Production
ing stocks of all products in face of the current dull market,
Ended
Period
Since June Same Period
Year Ago.
Not. 29.
1929.
buyers are showing little confidence in the market and it
30 1930.
looks as though the refined products field will remain a
Barrels.
Barrels.
Barrels.
Barrels.
1.862.495
Northwest
1,884,733 10,824,806 10,723,451
buyers' market for some time.
1,961.898
Southwest
1,989.065 11.419,678 11,618,481
Lake, Central and Southern_ 2,009,382
1,9111,828 11,420,837 10,961,308
While gasoline consumption has held up extremely well
357,834
Pacific Coast
2.162.948
2,015,803
390,955
the last month in spite of spots of unfavorable weather,
in
(Iron.. ....I
A 101 silo
6215 551 255511 095 RA 4AR 168
buyers are showing little inclination to purchase in the tank
Note.-Thls authoritative compilation of flour milling activity represents aPproxl
mately 90% of the mills in principal flour-producing centers.
car market unless forced to cover immediate requirements.
DEC. 6
1930.]
3621
FINANCIAL CHRONICLE
The price range for U. S. Motor Gasoline remains the same, barrels. The following are estimates of daily average gross
7c. to 7I 2c. a gallon, in tank car lots, at the refiners. Al- production, by districts:
DAILY AVERAGE PRODUCTION (FIGURES IN BARRELS),
though the major refiners are trying to stabilize the market
Nov.29 '30. Nov.22 '30. Nov. 15 '30. Nov. 30'29
Weeks Endedat this level, continued price cutting by small independents Oklahoma
486,950
484,200
506,350
648,900
109,800
107,650
109,250
111,700
Kansas
undermine any attempt to strengthen the market. Unless Panhandle
74,850
73,650
76,050
101,300
Texas
63.650
64.350
63,75089,550
some steps are taken to correct this practice, the market North Texas
42,300
56,350
44,150
43,500
Central Texas
faces the prospect of further cuts before the end of the year. West
266,600
266,100
357,050
270,200
West Central
40.300
40.700
17,550
40.100
East Central Texas
The tank-wagon field is in practically the same position Southwest
72,950
82,950
93,650
78,850
Texas
44.050
44,100
37,400
44,200
North
Louisiana
continuing
to
be
an
important
factor. With Arkansas
with price cutting
51,950
51,950
63,000
51,900
162,400
142,40()
161,750
161,600
the market here in this condition, further pressure will un- Coastal Texas
26,550
23,550
29,350
29,500
Coastal Louisiana
doubtedly result in price reductions in both the tank-wagon Eastern (not incl. Michigan)___ _ 101,000
110,000
120,000
110,000
7,300
15,500
9,000
8,750
Michigan
and service station field throughout the New York and New Wyoming
46,900
54,750
47,850
46,300
4,950
10,550
6,450
4,950
England territory. Increasing demand for premium motor Montana
4,200
4,200
5.650
4,250
Colorado
fuel due to the cold weather season is responsible for stiffening New Mexico
45,050
7,450
46,100
45,050
601,800
704,500
599,900
607,200
California
of the price tone for this product.
2,304,550
2,638,200
Total
2,265,900
2,281,850
Kerosene, also suffering from easiness induced by priceTho estimated daily average gross production for the Mid-Continent
slashing tactics current among dealers, is in an easy position field,
including Oklahoma, Kansas, Panhandle, North, West Central,
with little interest on the part of the buyers being shown. West, East Central and Southwest Texas, North Louisiana and Arkansas,
While a slight seasonal increase in consumption has been for the week ended Nov. 29 was 1.262,000 barrels, as compared with 1,262,barrels for the preceding week, a decrease of 550 barrels. The Midnoted, apparent over-stocking has prevented the refiners 550
Continent production, excluding Smackover (Arkansas) heavy oil, was
from taking full advantage of this situation. Although a 1,226,300 barrels, as compared with 1,226,800 barrels, a decrease of 500
slightly easier tone in quotations is noticed, no price changes barrels.
The production figures of certain pools 1 n the various districts for the
have been made as yet. The tank-wagon market remains current
week, compared with the previous week, in barrels Of 42 gallons,
unchanged.
follow;
-Week Ended-Week EndedFurther weakness in the Southern markets for fuel oil is
Southwest TexasNov.29. Nov.22.
OklahomaNov.29. Nov.22,
13.250 14,000 Chapman-Abbot
6,000
expected to force downward price revisions in this territory Bowlegs
6,500
12,100 12.200 Darst Creek
Bristow-Snot
29,650 34,300
shortly. Although refiners are maintaining the market at Burbank
Luling
13.650 14,050
9,500
9,600
11,550 12,550 Salt Flat
City
16,100 15,600
previously posted levels, it is thought likely that reductions Carr
North Loutseana-16,650 20.900
Earlsboro
16,800 18,150 Sarenta-CarterrIlle
2,250
East Earbiboro
2,350
will be posted in the near future.
8.650 8,850 Zwolle
9,400
South Earlaboro
9,100
ArkansasDiesel oil is moving very well with increasing sharp com- Konswa
12,950 14,650
23,850 23.950 Smackover, light
4,800
Little River
4.850
petition among dealers for new business. While the price East
10,750 10,300 Smackover, heavy
Little River
35,700 35,750
Coastal Texas3,000
3,200
structure remains the same, it is thought that weakness in Maud
7,050
7,400 Barbers Hill
22,750 20,700
Mission
92,800 73,350 Raccoon Bend
8,750
8,900
the California market may force dealers here to revise their Oklahoma City
St Louis
21,550 23.300 Refuel()County
27,300 27,650
price schedules to protect themselves against shipments Searight
6,250
12,000 12,000
6.800 Sugar Land
Coastal Louisiana13,700 13,750
Seminole
from California.
2,100 East Hackberry
East Seminole
1,950
3,950
4,000
Old
Flackberry
900
900
Lubricating oils continue dull, with a slightly easier tone
Wet:ening-Kansas24,000 24,400 Salt Creek
26.000 27,150
in the market noted as a result of the recent price cut in Sedgwtok County
MontanaVoshell
6,550
7,450
Pennsylvania crude oil.
Panhandle TexasKevin-Sunburst
3,550
2,550
Gray
New
County
53,100
Mexico-55,600
Price changes follow:
Hutchinson County
14,250 13,550 Hobbs High
37,050 36,700
Dec. 1.-All refiners in the Gulf Coast export market quote TJ. S. Motor
Gasoline, in tank car lots, at the refiners, at 534c. a gallon.
Dec. 5.-U. S. Motor Gasoline is quoted in Chicago at 43
4 to Vic.
a gallon, off lie. a gallon.
Gasoline, U. S. Motor, Tank Car Lots, F.O.B. Refinery.
California
N. Y.-Carson Pet_$.07
N.Y.(Bayonne)_ --$.07
$.08-.11
Los Angeles,ex..06 4-.0734
Colonial-Beacon_ .07
Stand. Oil, N. J__ .07
Gulf Coast. ex .0534-.06
Sinclair Ref
Stand. Oil, N. Y___ __
Chicago
.04%-.6:1
.11 NorthLoulsiana.06 34-0634
Tide Water 011 Co, .07
Richfield 011 Co_ - .0734 New Orleans .06 X-.06ii North Texas__ .0434-0434
Arkansas
0634-.06 A Oklahoma
Warner-QuInenCo .07
.05-.0534
Pennsylvania
Pan-Am. Pet. Co. --- .0634
Shell Eastern Pet.. .0734
Gasoline, Service Station, Tax Included.
$ 19 Minneapolis
Cincinnati
5.17
.19 New Orleans
Cleveland
.145
.19 Philadelphia
Denver
.19
.125 San Francisco
Detroit
21
19
Spokane
Houston
.22
19 St Louis
Jacksonville
.13
159
Kansas City
Kerosene, 41-43 Water Whit Tank Car Lotse„ F.O.B. Refinery.
$.03-.0334 New Orleans 5.1)4 Si-.04M
N.Y.(Bayonne).S.06-.06 q Chicago
Tulsa
.03-,033( Los Angeles, ex.0434-.06
North Texas
.0334-,033
Fuel Oil, F.O.B. Refinery or Terminal.
Gulf
_$.85
plus
Coast
27D
Angeles
"C"
Los
$.65-.6734
New York(Bayonne)105 New Orion 18-20D $.80-.85 Chicago 18-22D.5734-.6234
Grade C
2.00
Diesel
Gas Oil, F.O.B. Refinery or Terminal.
I Tulsa'ChicagoN. Y.(Bayonne)28D plus_ _$.001-.05Si I 32-36D Ind $.02Si-.02 Si I 32-36D Ind $.023+-.02
New York
Atlanta
Baltimore
Boston
Buffalo
Chicago
$.163
22
162
165
198
17
North TexasArcher County
Wilbarger County
13,350
16,950
West Central TexasYoung County
13,400
West TexasCrane it Upton Counties 35,050
Ector County
7,950
Howard County
27,850
Reagan County
25,150
Winkler County
54,850
Yates
103,450
Balance Pecos County__ 4,100
East Central TexasVan Zandt County
27,500
Balance Lea County
California13,500 Elwood-Ooleta
17,000 Huntington Beach
Inglewood
Kettleman Hills
12,700 Long Beach
Midway-Sunset
Playa Del Rey
35,000 Santa Fe Swings
4,850 Seal Beach
27,500 Ventura Avenue
Pennsylvania Grade26,400
Allegany
56,
101,500 Bradford
2,800 Kane to Butler
Southwestern Penna...,..
West Virginia
27,600 Southeastern Otdo
6,600
35.300
27,000
15.500
26,000
96,000
59,000
42,000
94,000
17,700
48,400
5,700
I
40.500
28.000
15,300
25.700
98.000
59,500
40,300
93.400
18,000
46,500
6,100
7,200
18,250 23.750
6,850
7,500
2,900
3,000
12,450 13,350
6,700
7,000
Weekly Refinery Statistics for the United States.
According to the American Petroleum Institute, companies aggregating 3,571,200 barrels, or 95.7% of the
3,730,100 barrel estimated daily potential refining capacity
of the plants operating in the United States during the week
ended Nov. 29 1930, report that the crude runs to stills for
the week show that these companies operated to 62.9%
of their total capacity. Figures published last week show
that companies aggregating 3,571,200 barrels, or 95.7% of
the 3,730,100 barrel estimated daily potential refining capacity of all plants operating in the United States during
that week, but which operated to only 64.1% of their total
Prairie Oil to End All Crude Buying on January 1.
capacity, contributed to that report. The report for the
Independence
Dec.
5
is
from the week ended Nov. 29, follows:
The following from
New York "Evening Post."
CRUDE RUNS TO STILLS. GASOLINE STOCKS AND GAS AND FUEL OIL
District.
Per Cent
Potential
Capacity
Reporttag.
Crude
Runs
to
Stills.
East Coast
Appalachian
Ind., Illinois, Kentucky
Okla., Kans., Missouri_
Texas
Loulsiana-Arkansas
Rocky Mountain
California
Total week Nov.29
Daily average
Total week Nov.22
Daily average
y Total Nov.30 1929
Daily average
x Texas Gulf Coast
v v,.,,,,,..,o (lull CnsiAt
Per Cent
Oper.
of Total
Capacity
Report.
Gasoline
Stocks.
Gas
and
Fuel
Oil
Stocks.
5.563,000
778,000
4,255,000
2,325,000
6,292,000
1.295.000
1,517,000
15,262.000
11,182,000
1,025,000
3,978,000
4,583.000
11,017,000
2,261.000
1,029.000
103.793,000
3,172,000
520,000
1,824.000
1,756,000
3,348.000
1,027,000
303,000
3,774.000
95.7
15,724,000
2,246,300
16,036,000
2.290.800
17,751,000
2,535,800
62.9
37.287,000
138,868.000
64.1
36,532,000
139,254,000
72.5
36,138,000 *144,192.000
2,480,000
688.000
66.9
66.6
95.7
95.1
100.0
100.0
P.O 0000 O COO
Crude Oil Output in United States Again Falls Off.
The American Petroleum Institute estimates that the
daily average gross crude oil production in the United States
for the week ended Nov. 29 1930 was 2,265,900 barrels, as
compared with 2,281,850 barrels for the preceding week, a
decrease of 15,950 barrels. Compared with the output for
the week ended Nov.30 1929 of 2,638,200 barrels per day,the
current figure represents a decrease of 372,300 barrels daily.
The daily average production east of California for the week
ended Nov. 29 was 1,666,000 barrels, as compared with
1,674,650 barrels for the preceding week, a decrease of 8,650
STOCKS, WEEK ENDED NOV. 29 1930.
(Figures in barrels of 42 gallons.)
occ.kom.00
® to 00
omcroopcococno
Prairie Oil Company officials announced today that effective January 1
and until further notice it will withdraw as a general purchaser of crude
oil. This action is in accord with its recent statement that crude oil
purchases will be kept within market requirements.
"The fact that the Prairie Oil and Gas Company will cease its general
purchase of crude upon the market," the statement said, "does not prevent producers from whom it has heretofore purchased oil from selling
and having their oil transported by available common carrier pipe line
facilities to such market outlets as the producers may have."
5.030.000
1 011 000
000
8,290,
1 90, nnts
a Final revised. z Included above in table for week ended Nev. 2 1930 of their
respective districts. y The United States total figures for last year shown above
are not comparable with this year's totals because of the difference in the percentage
capacity reporting.
3622
FINANCIAL CHRONICLE
Note.-All crude runs to stills and stocks figures follow exactly the present Bureau
of Mines definitions. In California, stocks of heavy crude and all grades of fuel
oil are included under the heading "Gas and Fuel Oil Stocks." Crude oil runs to
stills include both foreign and domestic crude.
[vol.. 131.
pressure off the marketfrom that quarter and these sellers, in turn, meeting
with no particular resistance to higher prices, have gradually advanced
their prices from 1.01 cents to 11 .)4". cents. Buying of copper products
by the ultimate consumer continues disappointing. November export
business, stimulated by low prices and the reluctance of producers to sell.
totaled 71,000 long tons, a substantial gain over October's export tonnage.
A week ago the zinc market had dropped to 4.075 cents, St. Louis, and
last week sales were made at 4.05 cents to 4.10 cents. Offerings have just
about equaled demand and bookings in the past week were not impressive.
Lead buying was on a reduced scale, but this failed to bring out any
change in sentiment among sellers and the undertone of the market remained
steady in all directions. The price held at 5.10 cents, New York, and 4.95
cents, St. Louis. November shipments of virgin lead totaled 42,700 tons,
a decline of about 500 tons from October shipments. Tin prices during
the week ranged from 25.75 cents to 26 cents per pound.
Output of Natural Gasoline Increased in OctoberInventories Higher.
According to the United States Bureau of Mines, the
production of natural gasoline, after remaining stationary
during September, increased materially in October. Total
production amounted to 181,700,000 gallons, or a daily
average of 5,860,000 gallons. This represents an increase
over the daily average of September of 150,000 gallons, but
is 790,000 gallons below the daily average of October 1929.
The most noteworthy increases in production in October
Portland Cement Prices Cut.
were recorded in the Appalachian district, where the deFrom its St. Louis bureau the "Wall Street Journal"
mand for natural gas showed the usual seasonal increase, of last night (Dec. 5) reported the following:
Prices of Portland cement to contractors have been cut 30 cents on
and in the Oklahoma City field. Stocks of natural gasoline
cement in paper to $2.30 a barrel and cement in cloth sacks 40 cents to
held by plant operators on Oct. 31 amounted to 23,481,000 $2.55
a barrel. The production became effective throughout St. Louis
gallons. This compares with 22,429,000 gallons on hand a district November 22. Dealer prices also have been cut a corresponding
month ago and 20,589,000 gallons on hand a year ago. amount.
Blending at natural gasoline plants was practically unCarnegie Steel Co. and Other Companies Raise Prices
changed from September. The Bureau further shows:
on Bar, Plates and Shapes-Senator Norris Seeks
PRODUCTION OF NA ruttAL GASOLINE (THOUSANDS OF GALLONS).
Inquiry.
Production.
Stocks End ofMonth
Higher steel prices, discussed for some time in Wall Street
Jan.as the development most needed to instill confidence in
Sept.
Oct.
Oct.
Sept.
Oct.
Oct.
1930. 1930.
1930.
1930.
1929.
1930.
business and industry, were posted on Dec. 3 by the United
2,597
1,972 States Steel Corp., the Bethlehem Steel Corp. and other
Appalachian
6,900
4,700
8,900 72,200
Illinois, Kentucky.,to
195
1,000
800
1,300 10,200
207
9,258
9,123 important producers. The initial increase of $1 a ton on
Oklahoma
46,600 44,800 59,400 495,700
709
832 principal finished products was
Kansas
2,900
2,300
2,800 26,800
announced first by the
Texas
7,390
7,104
43,600 41,700 40,700 402,900
626 Carnegie Steel Co., a subsidiary of United States Steel, and
Louisiana
5,800
5,300
6,300 60,800
808
278
Arkansas
2,700
2,600
2,900 26,600
329
Rocky Mountain
578 its example was promptly followed elsewhere in the industry.
5.100
4,800
4,400 44,300
733
1,721
California
67,100 64,300 79,600 679,100
1,450
The foregoing is from the New York "Times" of Dec. 4,
Total
181,700 171.300 206,300 1818.600 23,481 22,429 from which we also take the following:
Daily average
5,860
5,710
6,650
5,980
_-----Total(thousands of bbla.)
Daily average
4,328
140
4,079
136
4,912
158
43,300
142
559
534
W. N. Davis of Mid-Continent Oil & Gas Association
Sees Better Times Ahead for Industry.
W. N. Davis, President of the Mid-Continent Oil & Gas
Association, the general organization representing the industry in the entire Southwest, including Kansas, Oklahoma, Texas, Louisiana, Arkansas and New Mexico, issued
the following statement in an interview this week:
That the oil industry is returning to more prosperous times Is clearly
Indicated by recent reports of its activities. There are various roads
which may be followed and the length and difficulties of the journey will
depend on whether it follows the old, ill-marked dirt roads, narrow,rough,
muddy and with many detours, or the new well-marked direct paved highway-the highway of supply intelligently balanced with demand. Such
a highway clearly shown to the industry at the annual meeting of the
American Petroleum Institute at Chicago through reports of the committee
on petroleum economics to the Federal Oil Conservation Board and of
the economics committee of the Institute.
That the industry has chosen this highway seems apparent from the
recent reports referred to. Daily average production of crude oil for the
week ending Nov. 22 was 2.281,850 barrels, the lowest since October 1926,
and 650,000 barrels less than for September of last year. In the same week
gasoline stocks were decreased 731,000 barrels making a total reduction of
approximately 17,000.000 barrels from the peak stocks of last spring.
Present refinery activity is at the rate of 64.1% of capacity compared
with 75.5% a year ago. Daily runs to stills for the same week were 360,000
barrels less than a year ago.
Producers have demonstrated their willingness to do their part and the
figures show that they are doing it. They have the support of the State
Governments and in Texas the Railroad Commission has recently issued
an order putting the State under proration that cuts the allowable daily
output 70.000 barrels from 750.000 to 680,000 barrels. This compares
with its peak of over 900,000 barrels in August 1929. California and
Oklahoma figures, respectively, show peaks in September 1929 of 890,000
and 885,000 barrels to compare with 607.000 and 485.000 barrels last week.
Refiners who have been the offenders for some time have been en
deavoring since June to correct their errors of the eight or nine preceding
months. The process has been painfully expensive to the entire industry
and the reduction of 731,000 barrels in gasoline stocks in the week ending
Nov.22,coming during a period which has always been one ofstock accumulation, Is most encouraging. Prosperity is not far distant along such a
highway of intelligent and economically sound action."
The new prices are for business booked for delivery in the first quarter
of 1931. They apply specifically to plates, shapes and bars, the products
most widely used, and there are indications that prices on certain other
steel products will be stiffened soon.
Carnegie Steel's advance was announced in Pittsburgh and confirmed
here at the headquarters of the United States Steel Corp. Bethlehem
Steel, the second largest producer In the country, met the increase almost
Immediately.
Movement Spreads Rapidly.
News came from large producing centres in the Middle West soon
thereafter that corresponding increases were being put into effect. The
Illinois Steel Co., also a subsidiary of United States Steel, took the initiative
In the Chicago district, as Carnegie Steel did In the Pittsburgh district.
It also was reported from Chicago that the Inland Steel Co., one of the
most important independents, planned an increase of from $1 to $2 a
ton on bars, shapes and plates for first-quarter delivery. Other producers,
If they did not post increases yesterday, will do so to-day, it is understood. The increase will become general throughout the industry by the
end of the week, it Is expected.
The new prices vary according to the location of the producers, but
they amount roughly to $1 a ton everywhere. In Pittsburgh, for example.
the price on plates, shapes and bars is advanced to $1.65 for 100 pounds,
against $1.60 at present. The new price in Chicago for first quarter
delivery will be $1.75, against $1.70.
These, of course, are minimum prices and simply represent the first
move in a program to stabilize the price situation in the steel industry.
Some of the largest producers, including Carnegie Steel, had already
fixed minimum prices of $1.60 on 100 pounds In Pittsburgh as well as
elsewhere. Nearly all of the important steel interests are of the opinion,
it Is understood, that the new prices can be maintained without any
difficulty since large consumers as well as producers appreciate the desirability of a profitable price basis for the steel industry.
No Change in Rail Prices.
There is no talk of higher prices on steel rails, but the present schedule.
which has been In effect several years, will be maintained in spite of the
reported insistence in certain quarters that concessions be made. Extensive buying of rails by the large carriers is said to have been delayed,
but such orders, it is believed, will be placed soon. Current railroad
purchases and inquiries are said to Involve a total of 650,000 tons, to be
distributed among the various rail-makers. The New York Central.
the Pennsylvania, and other large carriers are among the rail buyers
depended upon to furnish a large volume of business soon
New Prices Far Below Year Ago.
The prices posted yesterday for first quarter delivery are far from what
most steel producers regard as a satisfactory basis. In this connection
It Is pointed out that the new prices are really about $5 a ton less than
they were at the beginning of 1930. The prevailing official prices at that
time were $1.90 on 100 pounds. Pittsburgh. Price-shading was already
under way at that time.
If effect be given to the shading of official quotations which was being practiced a short time ago, tho increase announced yesterday amounts
to considerably more than $1 a ton. According to steel authorities, the
new prices will represent an Increase of between $2 and $4 a ton in the
earnings of producers, depending upon how cheaply these producers can
make steel. In other words, the new prices are from $2 to $4 higher than
the levels at which some steel Interests have been known to sell steel
recently in underbidding competitors.
Demand Turns Dull in Metal Markets-Copper at 11.25
Cents-Lead Unchanged.
The week in nonferrous metals was extremely quiet,
"Metal and Mineral Markets" reports. Demand has turned
dull in all directions, though a little more zinc was sold
than in the preceding week. Copper prices advanced to
11 Yi cents, delivered, as the rather meager offerings of the
Action taken by steel companies in Youngstown, Ohio,
custom smelters were absorbed; large producers continued was
reported as follows in a dispatch from that city to the
was
unLead
quotation.
to adhere to a nominal 12-cent
New York "Times":
changed and tin was quiet. The same publication goes
The Youngstown Sheet & Tube Co., Republic Steel Corp. and other dison to say:
trict interests will adhere to the new quotations on bars, plates and shapes
Fabricators continue to base their prices on 12-cent copper and seem
anxious to have that price at least approached in the open market. Such
a price would also be more favorable for the year-end inventory. They are
therefore giving She custom smelters enough business to take most of the
announced to-day by Carnegie Steel & Bethlehem Steel, representing an
advance of Si a ton.
This action is seen as a forerunner to similar advances In other rolled
steel lines and follows efforts of the leading interests to strengthen the
Dne. 6 1930.]
FINANCIAL CHRONICLE
3623
market. It is expected that pricenncreases will spread to pipe, sheets, works unit are scheduled to go out this week, while an Ohio steel company
blast furnace may soon be relighted.
strips, pig iron and all forms of finished products.
Low prices of pig iron have brought out further purchases for the first
It Is considered unlikely that semi-finished steel prices will be changed,
as there has been considerable resistance to the $31 a ton market on sheet quarter, with recent activity greatest in the Chicago district, where one
bars, slabs and billets. However, makers have been able to resist such contract for 20,000 tons and several of 4.000 to 5.000 tons were closed.
pressure, and the semi-finished market has remained firm, while rolled steel Pig iron prices have undergone no further change except in the Philadelphia district, where the market is off another 50c. a ton.
lines have been subject to fluctuations downward.
Relatively little forward buying has thus far developed in finished steel,
The Chicago dispatch, Dee. 3, to the same paper said:
although increasing interest is being shown in first quarter contracts,
In the face of the lowest rate of ingot output in years,steel producers have notably by the automobile industry. Motor car output, owing to suspenraised prices $1 a ton on first-quarter delivery of shapes, plates and bars. sions for inventory purposes by many plants in the latter half of December,
Carnegie Steel, subsidiary of the United States Steel Corp., took the lead will probably dip to a new low for the year, but with improvement expected
in making a price of $1.65 for 100 pounds the minimum. Illinois Steel, on in the New Year mills are counting on a fair volume of automotive steel
the basis of a base price of $1.65 at Pittsburgh, is increasing its prices to orders for January shipment.
Railroad buying, although showing signs of revival, continues to lag
$1.75, a similar $1 a ton advance.
E. J. Buffington, President of the Illinois Steel Co., director of United far behind the volume of a year ago. The New York Central has entered the
States Steel and veteran of the Middle Western steel industry, has believed market for 125,000 tons of rails, while the Chicago Great Western is infor some weeks that the steel industry was near bottom and that advances quiring for 5,000 tons and the Kansas City Southern for 8.000 tons. Rail
were more to be anticipated than recessions.
mill operations are slowly increasing at Pittsburgh and Chicago, with the
rate now up to 30%, compared with 25% a week ago.
A Senate investigation into anti-trust matters in general Chicago
Though finished steel prices, according to the "Iron Age" composite,
and in particular into the action of the great steel companies have remained at an average of 2.135c. a lb. for the eighth consecutive
to $18.02
in deciding simultaneously to advance the price of steel a week, raw material prices continue to weaken, pig iron declining
from $16.11 a week ago and heavy melting scrap dropping to $11.42 from
dollar a ton was urged on Dec. 4, by a group of Senators as $11.58 last week. A comparative table follows:
the result of a speech in the Senate by Senator George W.
Finished Steel.
Based on steel bars, beams, tank plates;
Dec.2 1930, 2.135e. a Lb.
Norris, insurgent Republican, of Nebraska, and the intro2 1350. wire rails black pipe and sheets.
One week ago
2.135e. These products make 87% of the
duction of an investigation resolution by Senator W. H. One month ago
2.3620.1. United States output.
Bing, Democrat, of Utah. We quote from a Washington One year ago
Low.
High.
2.362c. Jan. 7
2.135e. Oct. 14
dispatch, Dec. 4, to the New York "Herald Tribune," 1930
2.4120. Apr. 2
2.3620. Oct. 29
1929
which likewise said:
2.314c. Jan. 3
2.391c. Dec. 11
1928
2.293c. Oct. 25
2.453e. Jan. 4
Senator Norris, reading newspaper accounts of the increase in steel prices, 1927
2.403e. May 18
2.4530. Jan. 5
1926
denounced the action of these concerns at a time when "patriotic efforts are 1925
2.3960, Aug. 18
2.5600. Jan. 6
being made to relieve unemployment by a large expansion of government
Pig Iron.
and private construction." He was backed up by Senator David I. Walsh.
2 1930, $16.02 a Gross Ton. fBased on average of baste bon at Valley
Democrat, of Massachusetts, and by Senator King, who proposed an OneDec.
$16.11J furnace and foundry Irons at Chicago,
week ago
investigation by the Judiciary Committee, of which Senator Norris is One month ago
16.29 Philadelphia, Buffalo, Valley and Bir18.291 mlngham.
chairman. While the King resolution is general in character, it doubtless One year ago
Low.
High.
would reach to the case of the steel companies if passed. Senator Norris
$16.11 Nov.25
$18.21 Jan. 7
1930
and also Senator Walsh declared the steel companies had apparently
Dec. 17
18.21
14
18.71
May
1929
violated the anti-trust laws.
17.04 July 24
18.59 Nov. 27
1928
17.54 Nov. 1
19.71 Jan. 4
President Hoover, in his message last Tuesday, suggested study of the 1927
19.46 July 13
21.54 Jan, 5
1926
anti-trust laws with a view to their modification in certain particulars.
18.96 July 7
22.50 Jan. 13
Senator King's resolution, which it is said will have much support and 1925
Steel Scrap.
may be passed, is as follows;
Based on heavy melting steel quoDec. 2 1930, $11.42 a Gross Ton.
Resolved, That the Committee on the Judiciary, or any duly authorized
talk:ins at Pittsburgh, Philadelphia
$11.58
week
ago
One
sub-committee thereof, is authorized to conduct a thorough investigation
11.92 and Chicago.
for the purpose of determining whether it is desirable or necessary (a) to One month ago
14.08
strengthen and extend the provisions of the anti-trust laws, or (b) to One year ago
Low.
High.
modify any of the provisions of such laws. The committee shall report to
$11.42 Dec. 2
$15.00 Feb. 18
the Senate as soon as practicable the results of its investigation, together 1930
14.08 Dec. 3
17.58 Jan. 29
1929
with its recommendations, if any, for necessary legislation.
13.08 July 2
16.50 Dec. 31
1928
The resolution, which provides also for an appropriation of $5,000 to 1927
13.08 Nov.22
15.25 Jan. 11
meet the expenses of the investigation, was referred to the Judiciary 1926
14.00 June 1
17.25 • Jan. 5
15.08 May 5
20.83 Jan. 13
1925
Committee.
Senator Norris pointed out that the President had been urging "men in
November's steel ingot output, to be announced next
all walks of life to go ahead with building operations" in order to give
week, will be lower, possibly revealing a daily rate well under
present employment to labor.
"In the face of this patriotic move which everybody wishes to help and 100,000 tons or the smallest since July, 1924, "Steel" of
push along," he continued, "the great steel combinations have agreed
Dec. 4 says in its summary of iron and steel conditions.
upon an increase that amounts to more than $1 a ton in the price of their
Steelmaking operations have receded this week to scant
products."
40%, compared with 43-45 last week, with Chicago now
Cleveland 44, Youngstown and Birmingham 43,
45%,
Plant
Wheeling Steel
on Full Time.
eastern Pennsylvania and Buffalo 40, and Pittsburgh slightly
From its Pittsburgh bureau the "Wall Street Journal"
below 40.
of Dec. 2 reported the following:
Decline in pig iron production, unbroken since May,
Wheeling Steel Corp. resumed operations in full at its Creek Mill plant.
accelerated in November when the daily rate slumped
was
The plant had been working half time for 10 weeks. One hundred and fifty
additional men are being given work.
11%, to 62,180 gross tons, the lowest since August, 1924,
and indicating an operating rate of only 44.1% for the blast
furnace industry reports "Steel." November's daily rate
Allegheny Steel Adopts 6-Hour Day.
compares with 69,851 tons in October and 106,081 tons
From its Pittsburgh bureau the "Wall Street Journal" of last November. November's total of 1,865,415 gross tons
Dec. 1 reported the following:
is 13.8% below the 2,165,374 tons of October, the apparent
Allegheny Steel Co. has adopted the six-hour day at its mills at Brackenrate being due to the shorter
ridge, effective Dec. 1. According to officials of the company the change discrepancy with the daily
made to relieve unemployment will affect 1,800 men. At present about month. In 11 months of 1930 output of pig iron has been
900 men are being employed three days a week.
29,775,730 tons. This compares with 39,453,266 tons in
the like period of 1929 and 34,461,857 tons in 1928. At
Steel Output Shows Further Decline-Pig Iron Pro- the close of November only 107 of the country's 310 stacks
duction Also Falls Off-Price of Steel Scrap and were active, or 4 fewer than on Oct. 31. Not since October,
1921, have so few stacks been in blast. "Steel" also goes on
Pig Iron Again Drops.
say:
to
Current specifications for iron and steel are adversely
Following last week's burst ofrailroad activity, the matter offirst quarter
affected by the approaching holiday and inventory period, prices, especially on steel bars, plates and shapes, has taken a commanding
and steel ingot production, increasingly irregular, is now position. With the first quarter barely a month distant and producers unto extend the current base of 1.60c, Pittsburgh, consumers manifest
estimated at 39%, compared with 41% a week ago, reports willing
unusual interest in covering. It is generally expected that an advance,
the "Iron Age" of Dec. 4:
probably of $1 per ton, will be decreed soon, perhaps this week.
On wire products, current prices of $1.90c, Pittsburgh-Cleveland, on
November brought a further decline in pig iron prowire nails, 2.30c. on plain wire and $36 on wire rods have been quietly
duction and, with another month of low operations dis- applied
to first quarter business. In some districts bolt and nut prices
counted because of the season, the attention of the iron have been continued, an announcement on rivets being scheduled for about
is displayed in first quarter contracts on
and steel industry is focused on expected improvement in Dec. 10. Moderate interest
sheets and strip, prices on these products being unchanged.
January. The "Age" further goes on to say:
Continuance of current levels on pig iron into the first quarter has been
Following the recent move to stabilize prices of bars, shapes and plates accompanied by a marked expansion in inquiry, and commitments are
at 1.60c., Pittsburgh, a leading steel producer is preparing to announce an expected shortly from melters usually covering by quarters. At New York
advance of $1 a ton to apply on first quarter business. Motives for such the week's sales again topped 10,000 tons. Shipments in many districts
action are to be found in mounting costs, vanishing earnings and a belief for December melting evidenced a mild decline. The last cargo of the season
that a stronger market will bring out latent business. Similar increases in of boat iron has been docked at Chicago, making the movement 30,000
prices were made during periods of depressed prcduction in 1927 and lS22.
tons this year. Covering by "shorts" has helped stem the downward
Total pig iron output in November was 1,867,107 tons, compared with tide in scrap, especially at Chicago.
October,
and the daily average was 62,237 tons against
2,164,768 tons in
Chicago, Milwaukee, St. Paul & Pacific will rebuild 4.000 to 5,000freight
69,831 tons, a decline of 7,594 tons or 10.9%. Eight blast furnaces were put cars in its own shops, and is inquiring for 57 locomotives. The New York
out in November and four were lighted, a net loss of four. On Dec. 1 there Central inquiry for 50 locomotives, on which all builders are bidding agwere 107 stacks in blast, or 78 fewer than on April 1 at the beginning of the gressively, will probably be duplicated. Revival of the Illinois Central
decline in furnace activity. An Alabama merchant stack and a Buffalo steel inquiry for upwards of 2,000 cars is expected.
3624
[VOL. 131.
FINANCIAL CHRONICLE
Canadian National has awarded 500 refrigerator cars and 10 locomotives
to its own shops A Lehigh Valley inquiry is out for 100 gondolas. Locomotive orders include ten by the Reading and two by the Chicago & Illinois
Midland. Expected nearby rail distribution includes 10,500 tons by the
Wabash, 8,000 by the Kansas City Southern, and 5.000 by the Chicago
Great Western.
Building steel orders and inquiries continue to sag, chiefly for seasonal
reasons, structural awards this week, totaling only 17,195 tons against
35,037 tons last week and 24,403 tons a year ago. Projects requiring
25.000 tons are active at Chicago, with 80,000 tons of inquiry expected in
In 30 days. Some makers of full-finished sheets report the best run of
orders in months from automotive interests bringing out new models.
For most sheet makers, specifications are lighter and bookings heavier.
Spiegeleisen has been reduced $3 per ton, to $30,furnace. A determination on ferromanganese is looked for shortly.
Due to weakness in eastern pig iron, "Steel's" market composite is off
2 cents this week, to $31.84. another new alltime low.
Steel ingot production during the week ended last Monday
(Dec. 1) was down only 1% on the daily average, although
the observance of Thanksgiving Day in the mills resulted
in the larger drop for the entire week, states the "Wall
Street Journal" of Dec. 3. The average at the beginning of
the current week was 39% compared with 40% in the
preceding week and 43% two weeks ago. The "Journal"
further says:
Larger companies which are increasing rail mill operations to take care
of the early deliveries next year to the carriers showed little change in their
rates. This is true of United States Steel, Bethlehem, Inland and others.
The reduction in the current rate is due to the letdown among other independents which do not make rails.
There was no change by the United States Steel Corp., which continued
at 45%, as in the preceding week, compared with 47)i% two weeks ago.
Independents are estimated at about 35%, against 37% in the week before
and 41% two weeks ago.
In the corresponding week of last year the Steel Corp.reduced operations
2% to 68%, while independents were down 3% to 65%, with the average
offabout2 % to slightly better than 66%. At the beginning of December
In 1928 the Steel Corporation was at 84%, with independents_ at 85%,
and the average was better than 84%%. Ett..11s.)
3.5
Pig Iron Production Declined 10.9% in November.
Still another sharp decline in pig iron production took
place in November, and the volume is down to the lowest
rate in over six years, says the "Iron Age" of Dec. 4. Actual
returns by wire on Dec. 2 from every active blast furnace
operating during November show that the daily rate last
month at 62,237 gross tons was about 11% under that for
October. There was a net loss of four active furnaces
against eight in October.
Production of coke pig iron in November, reports the
"Age," was 1,867,107 tons, or 62,237 tons per day for the 30
days. This contrasts with 2,164,768 tons, or 69,831 tons per
day for the 31 days in October. The loss in daily rate was
7,594 tons, or 10.9%. In October the loss was 8%, with
6.8% in September, 4.3% in August, and 13% in July. The
daily rate of 62,237 tons in November is the smallest since
August 1924, when it was 60,875 tons per day. The most
recent smaller daily rate for November was the 47,183 tons
for that month in 1921.
Total output for the first 11 months of this year has
been 29,733,415 tons, which compares with 42,448,853 tons
for the same period in 1929. To Dec. 1 1928 the total was
34,467,958 tons. The decline this year from 1929 is about
30%. The "Age" further adds:
Net Loss of Four Furnaces.
Eight furnaces were blown out or banked during November, and four
were blown In-a net loss of four for the month. In October the net loos
was eight stacks with 16 in September, five in August, 16 in July, and 20
In June. In the eight months since March the net loss in furnaces has
been 76.
Operating Rate on Dec. 1.
For the 107 furnaces active on Dec. 1, the estimated operating rate is
60,205 tons per day, which contrasts with 65,965 tons per day for the 111
furnaces active on Nov. 1.
Of the eight furnaces shut down last month, seven were independent steel
company stacks with one credited to the Steel Corp. One independent
steel company furnace and three merchant stacks were blown in. The
net loss in steel-making furnaces was seven.
Haselton furnace of the Republic Steel Corp. in the Mahoning Valley and
No. 2 furnace of the National Tube Co. in Ohio.
DAILY AVERAGE PRODUCTION OF COKE PIG IRON IN THE UNITED
STATES BY MONTHS SINCE JAN. 1 1925-GROSS TONS.
January
February
March
April
May
June
First six month5
July
August
September
October
November
December
12 months'aver:tare _
1925.
1926.
1927.
1928.
1929.
1930.
108,720
114,791
114,975
108,632
94,542
89,115
105,039
85.936
87,241
90,873
97,528
100,767
104,853
90735,
106,974
104,408
111,032
115,004
112,304
107,844
109,660
103,978
103,241
104.543
107,553
107,890
99,712
107 043
100,123
105,024
112,366
114,074
109,385
102,988
107,351
95,199
95,073
92,498
89,810
88,279
86,960
90255
92,573
100,004
103,215
106,183
105,931
102.733
101,763
99,091
101,180
102,077
108.832
110,084
108,705
lila 252
111,044
114,507
119,822
122.087
125,745
123,908
119,564
122,100
121,151
116,585
115,745
108.047
91.513
91,209
101,390
104.715
106,062
104.283
97.804
100,891
85,146
81,417
75.890
69,831
62,237
115 551
DAILY RATE OF PIG IRON PRODUCTION BY MONTHS-GROSS TONS.
Mal Worts,
Madman.*
1923-January
60.520
23.053
February
78,444
21,560
March
83.489
19,720
AprIl
85,183
21.000
May
85.576
20,355
June
21,103
81.630
July
79,513
19.578
August
82,642
18.538
September
82,590
19,487
October
88,051
20.781
November
88,474
21.610
December
85,415
23.290
1929-January
85.530
25,514
February
89,246
25,261
March
95,461
24,361
April
95,680
26,407
May
100,174
25,571
June
99,993
23,915
July
98,044
24,056
August
98.900
22,251
September
95,426
21,159
October
93.644
22.101
November
83,276
22,771
December
68.152
23.361
111112--January
71.447
19,762
February
81,850
19.810
March
83,900
20.815
April
20,573
85.489
May
19.973
84.310
June
19,921
77.883
July
66,949
18,197
August
64.857
16.560
September
62.312
13.548
October
57,788
12,043
November
49,730
12,507
•Includes pig Iron made for the market by steel companies.
Total.
92,573
100,004
103,215
106,183
105,931
102,733
99,091
101,180
102.077
108.832
110,084
108,705
111,044
114.507
119,822
122,087
125,745
123.908
122,100
121.151
116.585
115,745
106.047
91,513
91,209
101,390
104,715
106.063
104.283
97,804
85,146
81,417
75,800
89.831
82.237
BEGINNING JAN.11928-GROSS TONS.
Jan__
Feb_
Mar__
Apr __
May...
June-_
14
1928.
2,869,761
2,900,126
3,199,674
3.185,504
3,283,856
3,082,000
1929.
3,442.370
3.206,185
3,714,473
3.662.825
3,898.082
3,717,225
1930.
2,827,464
2,838.920
3,246,171
3.181,868
3.232,760
2.934.129
1928.
July.... 8.071,824
Aug .._ 3,136,570
Sept__ 3.062.314
Oct.__ 3,373,806
Nov._ 3,302,523
Dec .._ 3,369,846
1929.
3,785,120
3.755,680
3,497.564
3.588.118
8,181.411
2,836,916
1930.
2,839,537
2.523.921
2.276.770
2.114.768
1,867,107
Yr-18,520,921 21.840.980 18,281.312 Year*_37.837.804 42,285.789
• These totals do not include charcoal 'pig iron. The 1929 production of
Iron was 138.193 gross tons, as compared with 142.960 gross tons in 1928.
PRODUCTION OF STEEL COMPANIES FOR OWN USE-GROSS
Total Pig IronSpiegel and Ferromanganese.
Tam.
FOTIomanganese.:
1928.
1929.
1930.
1928.
1929.
1930.
January
February
March
2,155,133
2,274.880
2,588,158
2,651.416
2,498,901
2,959,295
2,214,875
2,284,234
2.600.980
22.298
19,320
27.912
28,208
35.978
24.978
27,260
21,310
23,345
3 months
April
May
June
7.018,171
2.55.5,500
2,652.872
2,443,905
8,109,612
2,826,028
3.105,404
2.999,798
7,100,089
2,564.681
2,613.628
2,304.223
69,530
18,405
29,940
32,088
79,164
22,413
25,896
33,363
71,915
27.777
30,296
27,327
Half-year
July
August
September
14,675,448 17,040,842 14,582,821 149.963 160,836 157,325
2,464,896 3,039,370 2,075.414 32,909 31,040 17,728
2,561,904 3,065,874 2,010,572 24,583 28,461 20,909
2,477,895 2,882,799 1,870,269 22,278 27,505 21,181
9 months
October
November
December
22,179,943 26,008,885 20,538.876 230,733 247,842 217.148
2,729,589 2.902,960 1.791.421 23,939 31.108 24.480
2,654,211 2,498,291 1,491,927 29,773 28.285 18,619
2,647,863 2,112,074
28,618 28,164
Year
30.211,606 33,522.840
Includes Output of merchant furnaces.
12,061 335.799
Production of Bituminous Coal and Pennsylvania
Anthracite Declines.
According to the United States Bureau of Mines, Department of Commerce, output of bituminous coal and Pennsylvania anthracite declined in the week ended Nov. 22 1930,
as compared with the preceding week and the corresponding
Possibly Active Furnaces Reduced.
week last year. During the week under review, there were
With the dismantling of the two Low Moor furnaces in Virginia, the
number of possibly active stacks in the United States is reduced from produced 8,895,000 net tons of bituminous coal, 1,089,000
314 to 312.
tons of Pennsylvania anthracite and 36,600 tons of beehive
Furnace Changes in November.
coke as compared with 11,173,000 tons of bitumonous coal,
Four furnaces were blown in during November, as follows: The Neville
1,323,000 tons of Pennsylvania anthracite and 85,200 tons
Island furnace of the Davison Coke & Iron Co. in the Pittsburgh district;
the Oriskany furnace of E. J. Lavino & Co. in Virginia (blown in late in of beehive coke in the week ended Nov. 23 1929, and 9,718,October but not reported); the Shenango furnace in the Shenango Valley, 000 tons of bituminous coal, 1,352,000 tons of Pennsylvania
and one furnace of the Colorado Fuel 5: Iron CO. in Colorado.
anthracite and 39,500 tons of beehive coke in the week
The following furnaces were blown out or banked during November:
"A" furnace at the Bethlehem plant of the Bethlehem Steel Corp. in the ended Nov. 15 1930.
Lehigh Valley; one Aliquippa and one Eliza furnace of the Jones &
For the calendar year to Nov. 22 1930, a total of 413,213,Laughlin Steel Corp., and one Monessen furnace of the Pittsburgh Steel Co. 000 net tons were produced as
against 475,862,000 net tons
in the Pittsburgh district; "L" furnace at the Cambria plant of the
Bethlehem Steel Corp. in western Pennsylvania; "A" furnace at the ; in the calendar year Co Nov. 23 1929. The Bureau's stateSparrows Point plant of the Bethlehem Steel Corp. in Maryland; one ment follows:
DEC. 6 1930.1
3625
FINANCIAL CIMONICLE
BEEHIVE COKE.
The total production of beehive coke for the country as a whole during
week
ended
Nov.
22
is
estimated
at 36,600 net tons. Compared with
the
the output in the preceding week, this shows a decrease of 2,900 tons, or
7.3%. Production during the week in 1929 corresponding with that of
Nov. 22 amounted to 85,200 tons.
Accumulative production of beehive coke since Jan. 1 1930 amounts to
2,580,500 net tons. Compared with 5.573,600 tons produced during the
corresponding period of 1929. this indicates a decrease, during the present
year to date, bf approximately 2,993,100 tons, or 53.7%.
Estimated Production of Beehive Coke (Net Tons).
Week Ended1930
1929
to
to
Nov.22 Nov. 15 Nov.23
Region1930.b
1930.c
1929.
Date.
Date.a
Penna., Ohio and W. Va
33,200
73,400 2,266,100 4,995,000
30,400
Georgia, Tenn. and Virginia
7.900
217,400
244,800
4,700
4,400
233,800
Colo.. Utah and Wash
1,500
1,900
3,900
97,000
United States total
36,600
39,500
85,200 2,580.500 5,573.600
Daily average
14,200
19,977
6,100
6,583
9,265
a Minus one day's production first week in January to equalize number of days
in the two years. b Subject to revision. c Revised.
production for the week was 10,000 tons higher than in the full-time week
preceding. The following table apportions the tonnage by States and
gives comparable figures for other recent years;
Estimated Weekly Production of Coal by States (Net Tons).
Week Ended
Nov. 17
Nov. 8
Nov. 16
Nov. 15
1929.
1928.
1930.
State1930.
279,000
353,000
303,000
306.000
Alabama
43,000
28.000
40,000
45,000
Arkansas
257.000
218.000
186,000
172,000
Colorado
1,064.000 1,204,000 1,160.000 1,218.000
Illinois
339,000
332,000
317,000
368,000
Indiana
76,000
79,000
85,000
70,000
Iowa
76,000
51,000
58,000
53,000
Kansas
935,000 1,003,000
831,000
829.000
Kentucky-Eastern
314,000
274,000
195,000
Western
199,000
59,000
54.000
45,000
46,000
Maryland
3,000
18,000
16,000
17,000
Michigan
70,000
79,000
67,000
74,000
Missouri
83,000
66,000
74.000
56,000
Montana
52,000
61,000
42,000
49,000
New Mexico
74,000
57,000
57,000
69,000
North Dakota
427,000
482,000
518,000
531,000
Ohio
86,000
95,000
67,000
55,000
Oklahoma
2,552,000 2,554.000 2,796,000 2,839,000
Pennsylvania
120,000
117,000
114,000
115,000
Tennessee
22,000
15,000
12,000
14.000
Texas
111.000
142,000
107,000
105,000
Utah
273,000
285,000
226,000
236,000
Virginia
53,000
47,000
50.000
42,000
Washington
W.Virginia--Southem_b_ 1.959,000 1,776,000 2,092,000 2,190,000
760,000
856,000
576,000
643,000
Northern_c
140,000
150,000
140,000
116,000
Wyoming
6,000
1,000
1,000
5,000
Other States
November
1923
Average.a
349,000
25,000
253,000
1,535,000
514,000
121,000
90,000
584,000
204,000
37,000
21,000
69,000
64,000
56,000
27,000
599,000
58,000
2,818,000
103,000
21.000
100,000
193.000
57.000
1,132,000
692,000
173,000
5,000
BITUMINOUS COAL.
The total production of soft coal during the week ended Nov. 22 1930.
including lignite and coal coked at the mines, is estimated at 8,895,000
net tons. This is a decrease of 823,000 tons, or 8.5%, from the output
in the preceding week, when working time was curtailed by the observance
of the Armistice Day holiday on Nov. 11 Production during the week
in 1929 corresponding with that of Nov. 22 amounted to 11.173.000 tons.
Estimated United States Production of Bituminous Coal (Net Tons).
Total bituminous coal 9,718,000 9,708,000 10,740,000 11,101,000 9,900,000
1929- Pennsylvania anthracite-. 1,352,000 1,612,000 1,281.000 1,692,000 1,806.000
1930-Cal. Year
Cal. Year
Week Endedto Date.a
Week.
Week.
to Date.
11,070,000 11,320,000 12,021.000 12,793.000 11,706.000
Total all coal
Nov. 8
11,285,000 453,949,000
9.708,000 394,800,000
weekly rate for the entire month. b Includes operations on the
Daily average
1,913,000
1,716.000 N.aezAverage
1,493,000
1,765.000
Virginian,
and K.di M. c Rest of State, including Panhandle.
0..
W., C. dc
Nov. 15_b
10,740,000 464,689.000
9,718.000 404,318,000
Daily average
1,884,000
1,719,000
1.498.000
1,735,000
PENNSYLVANIA ANTHRACITE.
Nov. 22_c
11,173,000 475,862,000
8,895,000 413,213,000
Daily average
The total production of anthracite in the State of Pennsylvania during
1,722,000
1,862.000
• ,
a Minus one day's production first week in January to equalize number of days the week ended Nov. 22 is estimated at 1,089,000 net tons. This is 263.000
In the two years. b Revised since last report. c Subject to revision.
tons, or 19.5% less than the output in the preceding week, when working
The total production of soft coal during the present calendar year to time was curtailed by the observance of the Armistice Day holiday on
Nov. 22 (approximately 276 working days) amounts to 413,213.000 net Nov. 11. Production during the week in 1929 corresponding with that
tons. Figures for corresponding periods in other recent years are given of Nov. 22 amounted to 1.323.000 tons.
below.
Estimated Production of Pennsylvania Anthracite (Net Tons).
1929
1929
475,862.000 net tone 1927
464.873,000 net tons
1930DeityDaily
1928
503,806,000 net tons
444,376,000 net tons 1926
Average.
Week.
Average.
Wee.
EndedWeek
As already indicated by the revised figures above, the total production
254,000
1,524.000
268,700
1 612,000
of soft coal for the country as a whole during the week ended Nov. 15 is Nov. 8
256,000
1,281,000
270,400
1 352,000
Nov. 15
221,000
1,323,000
estimated at 9,718.000 net tons. Although working time on Armistice Nov. 22.a
181,500
1,089,000
Day, Nov. 11, was equivalent to approximately 0.6 of a working day,
a Subject to revision.
Current Events and Discussions
The Week With the Federal Reserve Banks.
; Returns of Member Banks for New York and Chicago
Federal Reserve Districts-Brokers' Loans.
volume
of
Federal
average
daily
Reserve
Bank credit
The
Beginning with the returns for June 29 1927, the Federal
outstanding during the week ended Dec. 3, as reported by
the 12 Federal Reserve banks, was $1,093,000,000, an Reserve Board also commenced to give out the figures of the
increase of $71,000,000 compared with the preceding week member banks in the New York Federal Reserve District,
and a decrease of $509,000,000 compared with the corres- as well as those in the Chicago Reserve District, on Thursponding week in 1929. After noting these facts, the days, simultaneously with the figures for the Reserve banks
themselves, and for the same week, instead of waiting until
Federal Reserve Board proceeds as follows:
On Dec. 3 total Reserve bank credit amounted to $1,108,000,000, an the following Monday, before which time the statistics covincrease of $80.000,000 for the week. This increase corresponds with
body of reporting member banks in the
increases of 550,000.000 in money in circulation, 814,000,000 in member ering the entire
bank reserve balances and 57.000.000 in unexpended capital funds, 8tc., different cities included cannot be got ready.
and a decrease of 515.000,000 in Treasury currency, offset in part by an
Below is the statement for the New York member banks
increase of $6.000,000 in monetary gold stock.
member banks for the current
Holdings of discounted bills increased 817,000,000 during the week, and that for the Chicago
the principal changes being increases of $9,000,000 at the Federal Reserve week as thus issued in advance of the full statement of the
Bank of New York, 86,000,000 at San Francisco and $3,000.000 each at member banks, which latter will not be available until the
Cleveland and Atlanta, and a decrease of $4.000.000 at Richmond. The
statement, of course,
System's holdings of bills bought in open market increased $43.000.000. coming Monday. The New York
of U. S. bonds $9.000,000 and of Treasury certificates and bills 58,000,000. also includes the brokers' loans of reporting member banks.
while holdings of Treasury notes declined $11,000,000.
The grand aggregate of these brokers' loans the present
Beginning with the statement of May 28 1930, the text weeks shows a decrease of $11,000,000, the total on Dec. 3
accompanying the weekly condition statement of the Federal 1930 standing at $2,111,000,000. The present week's deReserve banks was changed to show the amount of Reserve crease of $11,000,000 follows a contraction in each of the
bank credit outstanding and certain other items not included nine preceding weeks, making the falling off for the nine
in the condition statement, such as monetary gold stock and weeks combined of $1,111,000,000. Loans "for own acmoney in circulation. The Federal Reserve Board's explana- count" increased during the week from $1,288,000,000 to
tion of the changes, together with the definition of the dif- $1,296,000,000, but loans "for account of out-of-town
ferent items, was published in the May 31 1930 issue of the banks" decreased from $380,000,000 to $373,000,000 and
"Chronicle" on page 3797.
loans "for account of others" from $455,000,000 to $442,The statement in full for the week ended Dec. 3, in com- 000,000. The present weeks total of $2,111,000,000 is the
parison with the preceding week and with.the corresponding lowest point these figures have reached since April 22 1925,
date last year, will be found on subsequent pages--namely,
when the amount stood at $2,060,719,000.
pages 3671 and 3672.
Changes in the amount of Reserve bank credit outstanding CONDITION OF WEEKLY REPORTING MEMBER BANKS IN CENTRAL
and in related items during the week and the year ended
RESERVE CITIES.
Dec. 3 1930 were as follows:
New York.
Increase (+) or Decrease (-)
Dec.3 1930. Nov. 26 1930. "Dec. 4 1929.
Loans and investments-total
251,000,000 +17,000,000
219,000,000 +43,000,000
602,000,000 +6,000,000
36,000.000 +14,000,000
--621.000.000
-38,000,000
i-247,000,000
--21,000,000
Loans-total
TOTAL RES'VE BANK CREDIT 1,108,000,000 +80.000,000
4,572,000.000 +6,000,000
Monetary gold stock
1,772,000,000 -15,000,000
Treasury currency adjusted
---433,000,000
+203,000.000
--9,000,000
Investments-total
4,615,000,000 +50,000,000
Money in circulation
2,424,000,000 +14,000.000
Member bank reserve balances
Unexpended capital funds, non-mem413,000,000 +7.000,000
ber deposits, &c
-251,000,000
+23,000,000
Bills discounted
Bills bought
United States securities
Other Reserve bank credit
-10,000,000
On securities
All other
U.S. Government securities
'Other securities
Reserve with Federal Reserve Bank
Cash in vault
Dec. 3 1930. Nov. 26 1930. Dec.4 1929.
$
8,352,000,000 8,413,000,000 8,035.000,000
5,975,000,000 5,989,000,000 6,047,000,000
3,341,000,000 3,342.000,000 3,073,000,000
2,634,000.000 2,648,000,000 2.974,000.000
2,377,000,000 2,423.000,000 1,989.000.000
1,217,000,000 1,204,000,000 1,127,000,000
1.160.000,000 1,219,000,000 862,000,000
806,000,000 830,000,000 785,000,000
56,000,000
64,000,000
65,000,000
3626
'FINANCIAL CHRONICLE
Net demand deposits
Time deposits
Government deposits
Dec.31930. Nov. 26 1930. Dec 4 1929.
$
$
$
5 933,000,000 5,996.000,000 5,783,000.000
1,377,000,000 1,440,000.000 1.246,000,000
10,000,000
9,000.000
Due from banks
Due to banks
92,000.000
79,000,000 104,000,000
1 185,000,000 1,215,000,000 1,012,000,000
Borrowings from Federal Reserve Bank_
6,000,000
34,000,000
Loans on secur, to brokers & dealers:
For own account
1,296,000,000 1,288,000,000 792,000,000
For account of out-of-town banks._
373.000.000 380,000,000 680.000,000
For account of others
442,000,000 455,000,000 1,921,000,000
Total
2 111,000,000 2,122,000,000 3,392,000,000
On demand
On time
Loans and investments—total
1,557,000,000 1,563,000,000 2,945.000,000
554,000,000 560,000,000 447,000,000
Chicago.
2,008,000,0002,003,000,000 1,938,000,000
Loans—total
1,472,000,000 1.473,000,000 1,572,000,000
On securities
All other
840,000,000
632.000,000
Investments—total
U.S. Government securities
Other securities
Reserve with Federal Reserve Bank__
Cash in vault
Net demand deposits
Time deposits
Government deposits
838,000,000
635,000,000
900,000,000
672,000,000
536.000,000
530,000,000
366,000,000
232.000,000
304,000,000
224,000,000
306,000,000
193,000.000
14,000,000
185,000,000
14,000,000
161,000,000
205,000,000
,
186,000.000
16,000,000
1 323,000,000 1,288,000,000 1,261,000.000
615,000,000 631,000,000 531,000,000
1,000,000
2,000,000
Due from banks
Due to banks
Borrowings from Federal Reserve Bank_
169.000,000
335,000,000
184,000,000
329,000,000
118.000,000
315,000,000
1,000,000
1,000,000
52,000,000
•Revised.
Completer Returns of the Member Banks of the Federa
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 covering7the 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 Nov. 26:
The Federal Reserve Board's condition statement of weekly reporting
member banks in leading cities on Nov. 26 shows decreases for the
week
of $113,000,000 in loans and investments and of $92,000,000 in net demand
deposits, an Increase of $22,000.000 in borrowings from Federal Reserve
banks, and practically no change in time and Government deposits.
Loans on securities declined 349.000,000 at reporting banks in the
Chicago district, $14,000,000 in the New York district, $10,000,000 in
the St. Louis district and $77,000,000 at all reporting banks. "All other"
loans declined $69,000,000 in the New York district, 39.000.000 in the
Chicago district. $6.000.000 in the Boston district and $86,000,000 at all
reporting banks.
Holdings of U. S. Government securities declined $11.000,000 in the
Cleveland district and $12,000,000 at all reporting banks, while holdings
of other securities increased $35,000,000 in the New York district,
$13.000,000 in the Chicago district, $6,000.000 in the St. Louis district and
362,000.000 at all reporting banks.
Borrowings of weekly reporting member banks from Federal Reserve
banks aggregated $84,000,000 on Nov. 26, the principal changes for the
week being increases of $6,000,000 at the Federal Reserve Bank of Richmond and $5,000,000 at Cleveland.
A summary of the principal assets and liabilities of weekly reporting
member banks, together with changes during the week and the year ended
Nov. 26 1930, follows.
Increase 1-1-) or Decrease (—)
Since
Nov. 26 1930. Nov. 19 1930.
Nov. 27 1929.
Loans and investments—total_ __ _23.381,000,000
—113,000,000
Loans—total
16,527,000,000
—163,000,000 —1,171,000,000
7,761,000,000
8,766,000,000
—77,000,000 —128,000,000
—86,000,000 —1,043,000,000
On securities
All other
Investments—totaL
6,854,000,000
+28.000,000
+50,000,000 +1,199,000,000
U.S. Government securities_ — - 3.093.000,000
Other securities
3,761,000,000
—12,000,000
+62,000,000
+285,000,000
+914,000,000
Reserve with Federal Res've banks 1,814,000,000
Cash In vault
237,000,000
—16,000,000
+15,000,000
+70,000.000
—28,000,000
Net demand deposits
Time deposits
Government deposits
13,882,000,000
7,487,000,000
34,000,000
—92,000,000
+1,000,000
—8,000,000
+727.000,000
—16,000,000
1,531,000,000
3,413,000,000
—127,000,000
—86.000,000
+441,000,000
+611,000,000
84,000,000
+22,000,000
—510,000.000
Doe from banks
Due to banks
Borrowings from Fed. Res. banks_
Summary of Conditions in World Markets, According
to Cablegrams and Other Reports to the
Department of Commerce.
The Department of Commerce at Washington releases for
publication Dec. 6 the following summary of market conditions abroad, based on advices by cable and radio:
ARGENTINA.
Business during the week ended Nov. 28 continued to be dull, but
business men were slightly more optimistic owing to the strengthening of
For. 131.
cereal prices and peso exchange. There are increasing evidences that
business and finance are being adjusted to the depressed condition and
poor outlook of the agricultural districts of the country. The rural society
and farm interests are actively pressing the Government to aid them by a
reduction in railway cereal tariffs and by fixing grain prices.
On Nov. 30 the press published a memorandum by the National Minister of Finance estimat'ng that the Government's total income for 1930
and 1931 will amount to 616,000,000 paper pesos and 850,000,000 paper
pesos, respectively; that the public debt service requirements will be
226,000.000 paper pesos and 239.000,000 paper pesos, respectively. It
further states that in 1930 the country will have an adverse balance of
trade amounting to approximately 259,000.000 paper pesos; that ordinary
expenditures for 1931 will be reduced to 375.000.000 paper pesos, and that
road building and other public works will be undertaken If and when money
can be obtained at more advantageous rates than those prevailing at
present. A decree dated Nov. 30 authorizes the issue of 50,000,000 paper
pesos of cedulas, the Issue to be denominated series 38 (1 paper peso — 44
centavos gold).
AUSTRALIA.
Business in Australia reflects a growing pessimism as trade continues to
slump. The turnover in. all branches of trade shows a heavy decrease
compared with this time last year, and all indications point to a further
decline. Total Commonwealth and State accounts to the end of October
reveal a deficit of over £18,000,000. Building operations throughout the
country continue to show a decline. At Sydney building permits issued
during October were only 123' % of those issued during October last year.
while at Melbourne permits issued during September were 32% of those
issued last year. The unemployment situation remains acute. The
number of unemployed at the end of September was estimated at 180,000
compared with 85,000 at the end of 1928. It is felt that the relief of unemployment 111 the severest problem of the State and Commonwealth
Governments. Agricultural and pastoral conditions are excellent, however,
while the cost of living continues to show a further decline. The Melbourne wholesale price index number now stands at 1,343 compared with
1,629 a year ago, and the retail price index number is 13% below that of
the previous year (English pound — $4.86).
AUSTRALIA.
The Australian wool market remains practically unchanged though sales
at Sydney displayed a weaker tendency during the week. The Federal
Government has deckled to grant a bonus of £1 per ounce on all gold produced in 1931 in excess of the average for the last three years. An Australian
automobile association, with headquarters in Sydney, is being organized
to include all clubs of the Commonwealth. (X-34.86.)
BRAZIL.
Business for the week ended Nov. 28 continued to be dull, owing to the
continued uncertainty of the exchange situation. Exports of coffee from
Santos for the week in question amounted to 193,512 bags and from Rio
de Janeiro to 95,000 bags. Prices were weaker. The stabilization bureau
has been abolished, the Bank of Brazil taking the remaining stock of gold
and assuming the responsibility for the outstanding gold notes. During
and since the revolution the Bank of Brazil has issued 170,000 contos of
notes to be redeemed by it within two years, and the National treasury has
been authorized to issue 300.000 contos of 7% bonds which will mature in
two years.
BRITISH MALAYA.
Singapore merchants are becoming moderately optimistic as accumulated
stocks are steadily reduced. Some importers believe the majority of weak
dealers are eliminated, but the credit situation is still unsatisfactory. The
business depression is now centered largely in interior districts. Construction activity continues, largely on the part of the Government. The
October textile market was featured by slightly improved demand for
European goods and continued activity in Japanese lines. The month's
imports of automobiles, though equal to September, were 46% below
October 1929. Sales of passenger cars showed a slight improvement.
Contracts for new construction having been completed, the iron and
steel market is now quiet. Malaya's estate rubber production in October
decreased 697 tons from September, probably due to unfavorable weather
conditions. While many tin mines are still curtailing output, others are
back on full time schedule. It is believed the year's production of tin will
be only 7% under 1929. Imports continue to exceed exports in value.
October trade was slightly hIgher than September, but considerably below
October 1929.
CANADA.
There is still no marked acceleration in Dominion business although some
seasonal improvement is reported In winter lines stimulated by the advent of
cold weather. Conditions in the Maritime Provinces are generally more
favorable than in other sections of the Dominion. Holiday items of household electrical equipment are reported to be moving well there and in Quebec
Province and radio sales are being maintained by intensive advertising.
Seasonal hardware is also steady and the outlook is better with Eastern
factories increasing their production in household lines. An average holiday
business is reported from this section in well advertised specialties. Conditions are still dull in the automotive trade, but stocks of new and used
cars are low and good sales are reported in parts and seasonal accessories.
Local manufacture of auto tire fabrics is increasing, one large plant having
increased its spindle capacity. Quebec shoe production Is being maintained
at approximately last year's levels, but dealers are buying from hand to
mouth.
The Ontario situation is quiet. Agriculture in the Province is closing
a generally satisfactory year if the prevailing low prices are discounted.
Most crops have been good, although dry fall weather in some sections
has hampered cultivation. Grocery sales are about normal and the demand
for petroleum products is nearly average. Wholesale specialty business
is rather slow and mechanical office equipment is seasonally dull. Hosiery
Is in fair demand and local textile mills are operating at greater capacity.
The Prairie Provinces are suffering from unfavorable prices for their farm
production, particularly wheat, Winnipeg quotations on which have remained low on account of a small export and an uncertain market. The
closing quotation on No. 1 Northern cash wheat on Nov. 28 was 61%
cents. Demand for farm machinery in this section is very light and industrial machinery sales have also suffered a sharp seasonal decline.
Automotive parts and accessories are moving well but new and used car
sales are slow. Hardware lines are extermely slow except for small hand
tools. Sales of structural steel and cement are reported to be less than
50% of last year's. Hides and leather, paper and paper product sales
are fair. The Canadian National Rys. have begun the construction
of 10 locomotives and 250 refrigerator cars at Winnipeg.
British Columbia reports November sales of agricultural implements far
above October and 10% above last year. The chemical market there is
firm except for salt. Prices of household rubber goods have declined
by 20% in the last 30 days.
Employment in Canada on Nov. 1 was lower than on Oct. 1, according
to the Government's index, which registered 112.9 for that date as Com-
DEC. 61930.]
FINANCIAL CHRONICLE
pared with 116.2 on Oct. 1 and 124.6 a year ggo. Declines in all Provinces
are attributed to the pronounced seasonal curtailment in construction and
to the manufacturing decline in pulp and paper, iron and steel, leather,
electrical apparatus, non-ferrous metals, and rubber specialties. Employment in logging and mining, as well as in textile mills, musical instrument
and chemical plants gained.
Production of automobiles in Canada during October-4.541 units—
was the lowest reported for any month of the year to date.
CHINA.
Aviation services carrying regular daily mail and passengers between
Hankow and Icbang will be started by a Sino-American company on
Dec. 16. This will afford contact with important areas in the upper
Yangtze River, which are frequently out of tocuh with Hankow bceause
of unruly conditions in river traffic. Direct radiogram service between
Shanghai and San Francisco, Calif., will be inaugurated under auspices
of the Chinese Government on Dec. 6. Business in general in Hong Kong
is marking time,awaiting more definite clarification in the Kwangsi Province
situation. Very little improvement in business is anticipated before early
spring. Weak European demand and declining prices for soy beans are
causing much hardship to north Manchurian exporters, with Government
banks taking losses resulting in further depreciation of local currency in
North Manchuria. Further failures of firms are expected. The Manchurian export season is starting extremely dull, with no export cargo
space reserved beyond December. Import tonnage through South Manchuria ports from April to September inclusive declined to 887.000 from
1,290.000 in that period last year, and from 1,365,000 tons in the similar
period of 1928. Slight activity in bean exports last week is resulting
in an improvement in price.
COLOMBIA.
A slight improvement in business conditions is noticeable in some sections of Colombia especially around Bogota. This improvement is attributed to the increased circulation of money, the necessity of merchants
to replenish stocks, and the return of a large number of Colombians from
abroad. Imports of drugs, foodstuffs, and textiles are slightly better.
The only producing oil company and the pipeline company have announced
that they will each subscribe for 1,000,000 pesos of the internal Treasury
note issue of the National Government amounting to 6,000,000 Pesos•
It is expected that the balance of the loan will be taken up by Bogota
banks. Two of the leading breweries of Bogota have formed a consolidation with a capital of 16,000.000 pesos. The President has prolonged
the session of Congress one month. The House of Representatives passed
the revised Hausermann general tariff bill which provides for all rates
to be higher than now existing. The matter is now before the Senate.
The House also approved the upward revision of import duties on foodstuffs
and the Senate added other items. The bill authorizes the President to
increase or decrease rates according to conditions of crops and cost ofliving
in Colombia. If these measures become law American exports to Colombia
will be affected. Petroleum production in October amounted to 1,725,809
barrels and exports amounted to 1,676,166 barrels as compared with
1,638,926 and 1,615,841, respectively, in the previous month. The
American legal expert contracted to advise the Government on petroleum
matters, is now in Bogota studying the proposed petroleum bill. Colombia's exports to the United States at the end of the first nine months of
this year totaled $74,926,000 and imports from the United States for the
same period totaled $19,385,000, leaving a visible balance of trade in favor
of Colombia of $55,541,000.
CUBA.
Business activities in Cuba descended to new low levels during the
month of November. The main reason therefore was undoubtedly the state
of apprehension caused by the student disturbances throughout the Island,
which led to the suspension of the Constitutional Guarantees in Habana
and adjacent territory for a period of 20 days beginning Nov. 13 1930.
While the situation is apparently returning to normal, business in general
and expecially the retail trade, suffered severely as a result of these circumstances. At the present time credit investigation and caution on the
Part of American exporters as regards commitments is not merely a matter
of policy, but may be considered a necessity in the interest of sound export
sales practice. Another factor which contributed, although in a lesser
degree, to the decline in business activities was the reduction in the salaries
of Cuban Government employees which became necessary due to the
decline in Government revenues. The reduction, effective Nov. 1. amounts
to 20% in salaries exceeding $600 per annum and 10% in salaries from
$300 to $600 per annum. The decreased purchasing power of Government
employees will be particularly noticeable in Habana, where a large percentage of these employees are stationed. The most important development in the sugar industry has been the legislative approval of the sugar
Stabilization Law (Chadbourne Plan), the outstanding feature of which is
the segregation of 1,500,000 tons of raw sugar to be marketed by the
National Sugar Export Corp. during the five year period from 1931-1935,
both inclusive. A $42,000.000 bond issue is provided for under the law
to pay for the sugar segregated at the rate of $4 per bag of 325 pounds
(96 degrees polarization) f.o.b. Cuban ports. A committee of prominent
Cuban sugar producers has been appointed by the sugar interests and
endorsed by the President to proceed to Europe in order to confer with
European and Java producers regarding some possible international agreement for the purpose of attempting to stabilize the sugar industry. If these
negotiations are successful, they will possibly result in crop-restrictive
measures. As an immediate result of the enactment of the Sugar Stabilization Law and of the proposed international conferences, there has been a
well defined improvement in the general sentiment regarding the sugar
industry which was reflected in a decided upward trend in raw sugar prices.
3627
DOMINICAN REPUBLIC.
Business conditions in the Dominican Republic durhag November were
generally poor. In Santo Domingo the activity occasioned by the reconstruction activity and the circulation of relief funds is rapidly waning, and
commercial activities are returning to the low level of before the hurricane.
Retail merchants are now finding it necessary to grand local credits, inasmuch as the cash trade is falling off.
EL SALVADOR.
Business in general is extremely dull in El Salvador. Although stocka
are greatly depleted, it is not expected that there will be any further buyings until after the presidential election in January.
GREAT BRITAIN.
British business conditions continue depressed with little material change
from the previous month but with expressions of more hopeful feeling in
certain directions. The reason for the better feeling is difficult to explain
but probably it is owing in part to an impression that the bottom of the
business slump has been reached and that prospects do not warrant a continuation of the atmosphere of general discouragement which has been so
characteristic of late. The approaching Christmas holidays are also tending to stimulate trade. With a total of 2,286,000 persons registered as
unemployed on Nov. 27 (including those temporarily stopped and those
in casual employment) there was an increase of 24,000 for the week with
the aggregate reaching 1,012,000 above that for a year previous. The
coal industry has been affected by uncertainty as to the situation arising
from requirement of the coal mines act for reduction in the length of the
working day from 8 to 7% hours to become operative Dec. 1. in all districts except Yorkshire. Nottingham and Derby where the shorter day is
already effective. Negotiations for new wage agreements in most districts affected have been deadlocked, with owners demanding lower wages
to offset increased costs anticipated under the shorter working day and
miners standing firm against wage reductions. Tentative agreements are
now reported as having been reached in Northumberland. Durham and
several smaller districts but the situation existing in Scotland and South
Wales is reported to be critical. The chief hope of averting a crisis is
placed in the new National Industrial Board. New business is restricted
and forward contract business is almost entirely suspended pending the
outcome of the wage negotiations. Iron and steel trades are relatively
unchanged although a slightly better sentiment is apparent in some sections and at least two important steel companies report larger earnings
this year than last year. Conditions in the Scottish industry remain very
unsatisfactory with output about 30% of capacity and the lowest in recent
years. A merger of two Scottish steel works, which may lead to a working agreement among all firms in Lanarkshire, is a significant indication of
the trend toward centralization of industry.
A further decline in shipbuilding orders during the month is causing grave
concern. Although total tonnage output in the first 10 months of the
year amounted to 9,000 tons over that for the same period of 1929, the
outlook is less promising as there is comparatively little work on hand. The
National Shipbuilders Security, Ltd. (a corporation formed by shipbuilders
last February for the purpose of eliminating redundant yards)have acquired
three more yards for dismantling. Generally speaking,conditions affecting
machinery manufacturing continue unsatisfactory, with unemployment
severe. Export orders have been at a slow rate and so appreciable change
Is anticipated ,until after the New Year. Machine tool manufacturers
are reported to have had a steady flow oforders during the past three months
and it is said that some firms are working full capacity on Government
orders and special machinery for the automotive industry. A fair business
IS reported in agricultural implements, especially in root crop harvesting
machinery. Scottish machinery and machine tool manufacturers continue
to work much below normal capacity and locomotive and rolling stock
builders are only moderately employed, the latter being mainly engaged
on repair work.
INDIA.
Late trade returns and railroad earnings indicate a gradual increase in
the volume of business. Despite improvement in the trade balance, increase of the Imperial Bank rate to 6%.further contraction of currency and
firmer rates, exchange continues weak, due largely to continued export of
capital.
IRISH FREE STATE.
Free State business is slow with the trade turnover generally about 10%
below last year's. Bad weather continues an unfavorable factor in the agricultural outlook, impeding field work and affecting the quality of crops.
Yields, however, are generally up to average, and cattle are in good condition, with prices satisfactory for all live stock except sheep.
ITALY.
General business conditions in Italy have changed but little during the
past month. The heavy industries and textiles are very slow. Shipbuilding,
paper and rayon are the only lines which are producing anything like capacity, and even in the rayon industry a slight slackening is evident. Retailers
are buying from day to day only and sales are far below normal. It is
expected, however, that the present price reductions will act as a stimulant.
An increase of 50,000 to 446.000, on the unemployment registers is noted
during the month of October, this increase being due largely to the cessation
of agricultural and canning activities. Italy is making a determined and
interesting effort to achieve a reduction in the cost of living, hoping thus
to stimulate a greater turnover of goods by universal price cuts in commodities and services. Partially to set an example along this line, and partially also because of the necessity of redressing the budget deficit which
amounts to over 700,000,000 lire for the first four months of the present
fiscal year. the Government has announced a universal reduction of 12%,
effective Dec. 1, in all Governmental salaries, stipends and recompenses of
every nature, including all semi-official and affiliated organizations. This
CZECHOSLOVAKIA
action will directly affect about one million people and save the Treasury
The recent unemployment increase in Czechoslovakia to 125,000 accord- 800.000.000 lire net annually. The theory justifying this action is that,
ing to an estimate of the Manufacturers Association gives only a partial based on world prices, the purchasing power of the stabilized lira is one to
picture of tho situation since the Minister of Social Welfare estimates un- four of the pre-war purchasing power, and that the Italian retail costs are
employment in all lines at 300.000. While the general industrial activity too high and must be readjusted to the basis of the stabilized lira.
has been fairly well maintained, recent developments indicate that the low
JAPAN.
point has perhaps not yet been reached. Encouraging factors include
Economic effects from the earthquake of Nov. 26 are negligible as the
increased October carloadings and exports to the highest figures of any
contains no large cities or important industries. The total
month this year. Decreased activity is noted in machinery and chemicals affected area
earthquake loss is estimated at 20,000.000 yen (approximately $10,000,000)•
and the depression in textiles now extends to jute, leaving only silk plants
markets have not been affected, but the stock market
exchange
and
Stock
comparatively well employed. A slight improvement is reported in the
reaction from recent advances. Conditions in the
glass and gablonz industries, but activity in the tanneries and shoe factories is suffering a technical
distinctly
more favorable. The Home Department is
industry are
is slackening. The wholesale price index is still falling but at a much slower cotton
expenditure
of 40,000,000 yen for road construction in order
an
rate. Recent domestic price reductions include structural steel by 7%, sponsoring unemployment.
also paper, edible fats and margarine. The National Bank recently pur- to relieve
NETHERLAND EAST INDIES.
chased $4,000,000 worth of gold, bringing the total additions in the gold
Increased confidence in the country's economic position is noticeable.
stock during the year to $8,000,000. Loans and discounts of the National
Bank dropped again to a new low for the year. The stock market is quiet Slight price increases in practically all leading exports were gained in
and unable to establish a definite trend. The budget was passed by October and have been maintained. With exception of sugar, stocks are
Parliament as presented two months ago.
low. Although little increased activity is expected before 1931, the general
3628
FINANCIAL CHRONICLE
Opinion is one of confidence that export markets are on the upward trend.
The credit situation in general is in a more favorable position. No improvement is noted in the textile market, as large silk stocks and low prices offset
the better demand for dark cotton goods caused by the rainy season.
Retail business in automobiles continues weak, sales being confined chiefly
to cheaper cars. Stocks of used cars are large and repossessions cause
many dealers financial embarrassment. October is believed to have been
the best month of the year for the tire market, but with heavy dealer stocks
the outlook Is not encouraging.
NEWFOUNDLAND.
The retail trade outlook in the colony is unfavorable, according to a
telegraphic report. Continued weakness prevails in the foreign demand
for dried codfish, and the herring catch to date has been very poor. The
Wabana iron mines are now running on a half-time schedule. The Paper
mills operated at more than rated capacity during October, but production
may possibly recede; woodsmen are now stated to be on half time. There
is wide disappointment among local merchants on account of the scarcity
of cash for holiday purchasing.
NEW ZEALAND.
Opening wool sales at Auckland were very disappointing with prices the
lowest in years. Only 70% of the 20,000 bales offered were sold, and at the
low figure of 4;id. per pound. Practically all buying was on German
account with very little bidding from Bradford. The inauguration of
telephone service between New Zealand and Australia met with complete
success and some results have been obtained between New Zealand and
London.
NICARAGUA.
The general unsatisfactory business situation in Nicaragua failed to
show any improvement during November. Circulation of the cordoba
increased from 2,770,000 in October to 2,798,000 in November. Imports
through Corinto from Oct. 23 to Nov. 27 amounted to 2,797 tons. Of the
total exports which amounted to 1,663 tons during the same period, 1,428
tons were shipments of wood. Customs duties payable at Corinto during
November amounted to $95,950 as compared with $136.000 in October
and $88,000 in September.
SOUTH AFRICA.
Business continues generally quiet and on a keenly competitive basis.
Some seasonal improvement is noted in addition to the replacement of
depleted stocks, but the gains made so far fail to carry the conviction of
permanency. No appreciable expansion in the near future is anticipated.
Maize prices have improved slightly, but returns for both this commodity
and wool are disappointing. Farm finances are low and the government is
granting £1,150,000 to the Land Bank for mortgage loans and assistance
to be extended through agricultural societies. Except for the possible
beneficial influence of this measure, the credit situation is unchanged.
Unredeemed commercial paper is causing wholesalers some difficulty.
October imports are now estimated at £5,693,000,substantially higher than
in September, but about 12% under October last year. The motor trade is
still quiet with a somewhat better tone due to the reduction of stocks.
Sales are chiefly in the low priced range. Auction sales of used cars are
disrupting the market in the Transvaal. The textile market is dull with no
tendency to buy before the new year. Japanese products continue to arrive.
SWITZERLAND.
Swiss business is still unstable and on a hand-to-mouth basis as the result
of uninterrupted price declines and the weak buying of other markets. The
money markets show an abnormal spread between the official and private
discount rates, the latter having fallen to 1 3-16%. Gold holdings are
continuing to increase and gold is being put into circulation, the note issue
Is heavier than the needs of trade justify. The cost ofliving index in October
dropped to 158, due to lower bread prices; high rents prevent a further
decline in the index. Wholesale prices in October stood at 122, or a 15%
decline a year. The government is granting a subsidy of 1,000,000 francs
to the embroidery industry and seeking methods to absorb unemployment.
There has been more activity in industrial plant building this year, but
three-fourths represent minor remodeling rather than expansion. The 1930
unfavorable trade balance will probably amount to nearly 800,000.000
francs; this is far beyond normal, but will probably be offset without difficulty by invisible items.
TRINIDAD.
The cacao industry, after many months of severe depression, is being
made the subject of a special study on the part of the government with the
view of offering some measure of practical assistance to the financially
embarrassed producers. The present carry-over of cacao is estimated at
about 60,000 pounds and the new crop is arriving at the rate of about
47,000 pounds daily. Large deliveries will begin in February.
The Department's summary also includes the following
with regard to the island possessions of the United States:
PHILIPPINE ISLANDS.
October showed a slight improvement in general conditions owing to a
stronger tone in Manila markets, both in demand and price for leading
exports. Although retail trade is still difficult, seasonal losses were regained and shipments of staple lines to the southern islands followed increased trading which accompanies full activity of the sugar milling season.
Collections are slightly easier and many business houses report their books
cleaner than a year ago. Credits, however, continue difficult. Textile
business in October improved somewhat over the previous six months,
especially for American lines, owing to comparatively low stocks and to
over-stocks of Japanese goods. Japanese competition, however, continues
keen. Although seasonal improvement occurred in the automotive market, sales of both trucks and cars were below the same month's business
last year. October's foodstuffs market only slightly improved over September, with purchases for immediate needs only. The sugar milling Season opened with sugar content ofcane in most mills lower than usual, giving
rise to revisions in estimates of output. Stocks of abaca are lower, although dealers are said to have stored a fair amount recently in anticipation of a better market. Copra transactions are curtailed. Although
local oil mills are interested in buying, they have not raised their purchase
limits. Government finances at the close of September showed a deficit
of over four million dollars compared with a surplus of about the same
amount a year previous.
PORTO RICO.
Firmer sugar prices and a reasonable hope that prices will show some
further improvement, depending on current developments in world crop
reduction, has increased the confidence of the Porto Rican business community. In general, business gave further evidence during November
of the slow but steady improvement, except in building construction,
where activity is still restricted, and in staple foodstuffs, which are moving
only hand to mouth. Banks report continued difficulties in the collection of old accounts but current transactions are now largely on a cash
basis. Those merchants who are operating on their own capital, with
business showing a profit equal to that of any recent year.
[VoL. 131.
Return From Abroad of J. P. Morgan—Governor Harrison
of New Yok Federal Reserve Bank, also Returns from
Europe—Officials of Chase National Bank Likewise
Among Passengers—Mr. Morgan's Visit to Mr. Harrison at Reserve Bank.
J. P. Morgan who had been abroad since July returned
on the White Star steamer Olympic on December 3. It is
stated that Mr. Morgan, following his usual custom, declined to comment with regard to his trip.
George L. Harrison, Governor of the Federal Reserve
Bank of New York, who sailed for Europe on November
5, was a passenger on the North German Lloyd steamer
Bremen which reached New York December 2. Governor
Harrison in declining to discuss a report from Paris that
as a result of his visit to Europe closer relations had been
established between his organization and the Bank of
France is quoted in the "Times" of Dec. 3 as saying:
"I would rather not say anything about that. I don't
know exactly what is meant by the reported statement."
From the same account we take the following:
Beyond describing his voyage as "a regular business trip" Mr. Harrison
would say nothing about his stay abroad. He did, however, emphatically
deny that he had discussed reparations or debt settlements, explaining that
it was not within his province to take up those topics.
Occupying staterooms adjoining that of Mr. Harrison were three high
officials of the Chase National Bank, Charles S. McCain, Chairman of the
Board; Winthrop W. Aldrich, President, and Lynde Selden, Vice-President. Lord Hichelham, London banker, also was a passenger.
During the trip from Southampton to Cherbourg they conferred with
Montagu Norman, Governor of the Bank of England; Professor A.
Sprague, economist to the Bank, and Richard Crockford, London banker,
they admitted, although the subject of the conference was not revealed.
The Chase officials has been abroad two months, in which time they
toured Europe, studying business conditions. Mr. Aldrich indicated that
he had found that conditions abroad were about the same as those prevailing here.
It was noted in the New York "Times" of December 5
that on December 4 the directors of the New York Federal Reserve Bank held their first meeting since the return of Governor Harrison. The meeting, which was attended by Eugene Meyer, Governor of the Federal Reserve
Board, was protracted beyond the usual time, says the
"Times," which added:
While the meeting was in progress J. P. Morgan entered the bank and
asked to see Mr. Harrison. Mr. Morgan also returned from Europe this
week. Owen D. Young, Chairman of the General Electric Company and
a director of the Reserve Bank, came back from Europe last week. While
they were in London Mr. Morgan and Mr. Young were reported to have
held several conferences with Mr. Harrison and Montagu Norman, Governor of the Bank of England.
All that was made known of yesterday's meeting was that Mr. Harrison and Mr. Young outlined conditions as they had found them in Europe
and placed before the directors the substance of conversations which they
had with European central bankers.
The presence of Mr. Morgan at the bank added interest to a meeting
which already was regarded as of great significance in Wall Street.
Owing to the world-wide business depression and the seriousness of the
international banking and exchange problems confronting central bankers
the discussions which Mr. Harrison had abroad are regarded as fraught
with consequence. Following his previous trip to Europe, which was in
February, the central banks there and in this country embarked upon a
concerted program of easy money. Whether or not Mr. Harrison has
returned with a new plan for central banking co-operation to stimulate
business revival has not been revealed.
The difficulties of maintaining sterling exchange in the face of constant withdrawals of funds from London by Paris has been one of the
chief sources of concern among bankers. Recently it was reported that
banking authorities in London and Paris were discussing a credit arrangement to meet the problem. It is believed to be possible that the Federal
Reserve may be concerned in these arrangements and that Mr. Harrison
brought back with him plans for co-operation between London, Paris and
New York.
The course pursued by the Federal Reserve Banks here will be watched
closely for the next few weeks for a clue to any new policy. Most bankers
here confess that they are at a loss to know what further steps the bank
of issue can take to meet the situation created by the business depression.
The conferences of Gov. Harrison with Montagu Norman, Governor Moret of the Bank of France and Hans
Luther of the German Reichsbank were referred to in
these columns Nov. 8, page 2983; Nov. 22, page 3289, and
Nov. 29, page 3448.
Montagu Norman of Bank of England Uses Rope Ladder to
Leave Steamer Bremen After Visit With Bankers on
Board—Gov. Harrison of New York Reserve Bank a
Passenger.
Montagu Norman, Governor of the Bank of England,,
clambered down a rope ladder from the North German
Lloyd liner Bremen and hurried back to London on Nov.
28 after starting on a secret mission to New York. This
is learned from a cablegram Nov. 29 from London to the
New York "Times" which continued:
Mr. Norman was recalled by wireless while the Great German liner
was plowing through the English Channel from Southampton on the first
leg of her journey to America. The message said it was urgently necessary that be return to London, where there was a report that the govern.
DEC. 6 1930.]
FINANCIAL CHRONICLE
ment might soon announce its plans regarding the conversion of its
$2,000,000,000 5 per cent war loan.
Eastbound, the liner Majestic was due in Chei'bourg in the afternoon,
Captain Leopold Ziegenbein of the Bremen wirelessed to Captain E. R.
White of the Majestic, explaining Mr. Norman's plight. While the
Bremen was speeding across the Channel at twenty-eight knots the Majestic delayed behind Cherbourg breakwater. As soon as the Bremen anchored, a rope ladder was lowered over her glistening side so Mr. Norman
could return to London.
Passengers lined the rail, and Captain Ziegenbein leaned over from
the bridge while the 59-year-old banker climbed down the swaying ladder
to a launch bobbing up and down in a choppy sea. His valet followed
him down and a seaman lowered his baggage. The tiny boat hurried
across to the Majestic, and Mr. Norman, followed by his valet, scrambled
up another rope ladder to her deck, towering high above him.
Twenty-two hours after leaving London Mr. Norman was back at the
Bank of England, incidentally starting a flood of rumors in financial
London.
Mr. Norman's sudden return from Cherbourg has strengthened the impression that the government intends to announce its gigantic conversion
operation, possibly Monday morning. The imminence of the conversion
announcement is also believed to be the reason why William Graham,
President of the Board of Trade, left his country home suddenly tonight
for "an important conference" in the financial district, which usually
is deserted on Saturday.
According to Sir Josiah Stamp, however, Mr. Norman did not intend
to visit New York at all when he sailed on the Bremen. The real reason
for his cross-Channel jaunt was said to be the presence on the Bremen
of "an American banker," believed to be George L. Harrison, Governor
of the Federal Reserve Bank of New York.
"An American banking magnate, a friend of Mr. Norman's, recently
has been in Europe," explained Sir Josiah, who is a director of the
Bank of England. "He was returning to America, but Mr. Norman
wanted to have a last talk to him on various matters. So Mr. Norman
left Southampton on the Bremen, the liner on which his friend was
traveling. Their talk was concluded on the Bremen and the American
banker went on to New York. But Mr. Norman, who had no reason
for landing in France, came back on the Majestic."
In addition to Mr. Harrison the Bremen's passenger list included W.
W. Aldrich, President of the Chase National Bank of New York.
Owen D. Young Before Lotus Club in Discussing
Reparations and Question of Readjustment of
Debts Expresses Hope that United States Will Not
Be Wanting in Proper Appraisal of any Situation
Which May Arise.
Before the Lotus Club, in New York, at a dinner given in
his honor on Dec. 3, Owen D. Young, a principal in the
drafting of the plan for the settlement of German reparations, directed a part of a speech which he delivered, to the
question of war debt revisions, and stated that "it is quite
natural in times of depreciated commodity and security
prices that debtors should ask for a readjustment of their
debts." "As between great nations," said Mr. Young,
"I should hope for a breadth of view and a sympathy of
understanding, in dealing with problems of this kind, greater
than an individual has any right to expect from his own creditor. He, I found, is very hard-hearted. Let America not
be so. But under any circumstances, let her not through
indecision, or the exigencies of politics, precipitate us back
into the conditions which existed before. Whatever her
action may be, and it lies in the mouth of no private citizen
to say, let it always be definite. Let us avoid in all nations
the dreadful uncertainty which is worse than the heaviest
payments. . . . You will see that I have nothing to
say about debtors' capacity to pay. These are questions
which can only be settled in the light of situations as they
arise, and I hope that my country of all countries may not
be wanting in a proper appraisal of any such situations.
Mr. Young's speech as reported in the New York "Times"
follows:
Mr. President and my friends of the Lotus Club:
Let me ask you—if you have been one of a congregation of friendly
spirits for many years; if you had looked with pride as a member of the club
on the dinners which they have given to accomplished men as evidenced
by the cards in the grill below; if you had listened many times to graceful
words of appreciation, and frequently important speeches, and then suddenly found yourself where lam to-night, what would you say
Unless you
were a master of translating emotions into words and thrills up and down
your spinal column into truly reflective sentences, such as the President
of this club might do, what would you try to say? Would it not be merely—
I thank you—knowing full well that the same spirit which prompted this
dinner and this great honor would understand these simple words.
And speaking of the President of this club, may I say that he never
speaks in private conversation or from the public platform without making
me feel as Dr. Thomas Brown said of Sir Isaac Newton, he has "that almost
superhuman agency whose power and attainments at once make us proud
of our common nature and humbles us with our own disparity." It is no
exaggeration to say that Dr. Nicholas Murray Butler, certainly more than
any other private citizen, and I could go further too and include public
men, is the master interpreter of nation to nation in our time. Whether
he speaks to scholars or to masses, or to political bodies, which even if they
do not include both represent them, he is equally successful for he speaks
not only beautifully and persuasively in his own tongue, but understandingly in theirs. This is a field in which America with all her power, both
moral and financial, has not heretofore had a competent spokesman.
Indeed. I judge from the recent elections which have taken place in my
absence that he is not without success in interpreting the American people
to themselves. It is not of political parties of which I speak, but rather of
men of courage and conviction with capacity to comprehend and state
crucial problems so that the people may understand. That lathe need of the
world to-day.
3629
Stresses Power of Radio.
The most striking phenomenon of our time is the multiplication of the
carrying power of the human voice, and the appeal to the minds and the
emotions through the human ear. Once one could speak to hundreds, or,
if the acoustics were good and he could draw so many,perhaps to thousands.
But now he may penetrate,if he be a welcomed guest,the firesides and homes
of millions. No one has yet begun to appreciate what this multiplication of
power and responsibility means. Certainly, we do not here, insulated as
we are by great oceans on either side and bounded as we are by relatively
sparsely settled countries both north and south.
In Europe, however, the problem is becoming acute. It is one of the
things which I discussed in London. Countries are relatively small,frontiers
are close, and these radio waves carry the voices of quite different philosophies past the frontiers of nations, undisturbed. Immigration laws are
powerless against them. Tariffs are ineffective. Exclusion provisions which
keep out the printed page are prowerless to deny entrance to the more
effective human voice. Only the insulation of language yet remains to
protect national ideas from invasion from without. Some day oceans may
not protect us. Perhaps it would be well if they did not now. Perhaps
we need to know more of the world as it is and to discard for ourselves, as
we have for our daughters the hoop-skirts and the false untrankness of the
crinoline age. I for one, am not afraid of that equal companionship which
rests on personal responsibility, whether it be in the social relations of boys
and girls or the free interchange of opinion between grown men and women
everywhere.
So whether we like it or not, let us make up our minds that the future
holds a free expression of opinion between all the peoples of the world
instantaneously, and through the medium of that most delicate of all instruments, the human voice. It may one time express a new and strange
philosophy. At another time it may carry an appeal for rescue from earthquakes, on the high seas or even from the remote regions of the Pole. We
shall have to learn, and more particularly our children must learn, to
evaluate and judge for themselves between the philosophies with which the
world is faced, just as our sons and daughters have had to learn many other
things which we did not know. So much for the integration of a world so
small that many radio waves have to be sent the long way round in order
that they may be heard at all. This little globe of ours has become too small
to handle most effectively our own developed agencies of communication.
And yet, in the face of this, our politics raises its petty harriers, oblivious
of the mighty forces which men have let loose upon themselves. It is not
for me to criticise or to sit in judgment—it is only for me to appeal for adequate understanding by the greatest nation in the world in order that its
privileges and responsibilities of leadership may not fail in these critical
times and before it is too late.
Traces Reparations Progress.
And now to come down to earth. I suppose you expect me to talk about
international debts and reparations, a subject upon which I may be presumed competent to speak, and on which, because of that presumption,
whether it be true or false, I have great hesitancy to speak. After all, it has
taken us ten years to reach something like a reasonable definition of these
International obligations between Governments. For a long period they
were sunk in the mire of domestic politics and illumined only by the ghostly
rays of the Aurora Borealis. Reparations were like the line in Tam 0'Shanter:
"Or like the borealis race.
That flit ere you can point their place:
Or like the rainbow's lovely form
Evanishing amid the storm."
At last, after a five-year struggle, the principal nations of the world,rby
common consent,freely and without coercion, reached a definition in terms
of these difficult obligations. I say difficult because they embrace in their
very nature serious problems, economic, political and moral. The abstract
question of whether they should exist at all has been one of serious debate,
on which certainly I would not express a view. The fact is, and facts we
cannot ignore, that the public opinion of the world overwhelmingly demanded that some rational settlement eventuating in definite obligations
should result.
After the struggle of the last five years much has been accomplished.
Certainty has been substituted for uncertainty, which, after all, both
from an economic and political standpoint, is the most important thing
to attain. Even more than that, we have not only reached a definition
of obligations, but we have agreed upon an international agency known
as the Bank of International Settlements, which is to administer the payments of reparations, and which inevitably will and must, in one form or
another, handle the payments of the debts to us. That is a non-political
agency so far as it is humanly possible to create one in this world of politics.
So at least we have fixed these payments in definite terms, and we have
provided a non-political agency for their administration and for recommendations of revision if any are needed. Now whatever is done. and I
am not saying that anything should or should not be done. I express the
hope that never again will we throw these questions back into the field of
political controls and reintroduce the chaos of the last ten years. which
existed not only in the domestic economies of many European countries.
but overhung our international exchanges as well.
Discusses Debt Readjustment.
It is quite natural in times of depreciated commodity and security prices
that debtors should ask for a readjustment of their debts. I would be glad
to do so myself. Unfortunately, it takes twice as many securities to pay
my debts as it did when I incurred them. I could make a very good moral
argument, if any one would listen to me,that my debts should be reduced;
but I would not expect to get a hearing unless my creditor was satisfied
of my incapacity to pay. If he was, then it would be for the creditor to
say, not for me, what he wished to do about it. And as between great
nations, I should hope for a breadth of view and a sympathy of understanding, in dealing with problems of this kind, greater than an individual
has any right to expect from his own creditor. He, I found, is very hardhearted. Let America not be so. But under any circumstances, let her
not through indecision, or the exigencies of politics, precipitate us back
into the conditions which existed before. Whatever her action may be,
and it lies in the mouth of no private citizen to say,let it always be definite:
Let us avoid in all nations the dreadful uncertainty which is worse than the
heaviest payments. That is all I have to say on debts and reparations.
You will notice that I make no comments upon their amounts. You will
see that I have nothing to say about debtors' capacity to pay. These are
questions which can only be settled in the light of situations as they arise,
and I hope that my country of all countries may not be wanting in a proper
appraisal of any such situations.
And one thing more. Our politics and our economics are in conflict
everywhere in the world to-day. Our economics are necessarily international because of our interdependence upon each other. Our politics, on
the other hand, are national, increasingly so in every country. The first
is forcing itself through frontiers toward an integrated world: the other is
building up man-made barriers around a much larger number of political
units than existed before the war. The forces are violent and imposing.
3630
FINANCIAL CHRONICLE
[Vol.. 131.
may do in the future remains to be seen, he declared, but he expressed
Some better way must be found of accommodating each to the other or
the opinion that it is already one of the saving features in a tense world
they will destroy each other.
In some European countries the question is being seriously discussed situation.
of providing economic parliaments in addition to political ones in order
that men especially qualified for the handling of these difficult economic Bank for International Settlements Gets Gold First
problems may deal with them. What the solution may be, I do not know:
Time—Shipments From Bank of Spain and Others
but I am certain that one must be found. It has even been suggested that
Pave Way for Role as Storehouse—Deposit Made
if a holiday of armaments is good a holiday of parliaments would be better.
Here again it is the uncertainty which political action threatens which
Elsewhere—Basle Institution Eventually Due to
paralyzes economic efforts in this world recovery. Instability, whether
Serve as Gold Transfer Medium by Bookkeeping.
It be of revolutions in some countries or uncertainty through parliaments
or from disintegration in others,is one of the largest,if not indeed the largest,
The following Basle, Switzerland, cablegram, Dec. 3, is
factor in the present world crisis. Even economics may be willing to play
a hand with deuces wild, but it has not yet learned how to play when half from the New York "Times":
There is a new development in the gold situation which opens the door
the pack may be declared wild at any moment. Mr. Garvin, the Editor
of the "Observer" in London, said to me that political leadership in democ- for, and promises to lead eventually to the Bank for International Settlesame
becoming a storehouse for much of the world's gold, obviating the
ments
the
put
Emerson
as
Or,
unattainable.
the
of
racies required a vision
Idea, you must hitch your wagon to a star. It may not be that the wagon necessity for shipping bullion by accomplishing such transfers merely
will get to the star, but it does mean that the star will give direction to the through its bookkeeping.
The world bank for the first time is now the holder of gold. it Is underwagon. So if political forces must be guided by a vision of the unattainable, economic forces must likewise be guided always by a vision of the stood. It has received fairly large quantities of gold from certain central
attainable. The problem of reconciling the two is the most immediate banks, including the Bank of Spain and the Bank of Lithuania. More is
known to be on the way from these and other central banks.
and difficult problem in the world.
The recent gold shipments from the Bank of Spain to London, which
But if there is one thought that I should wish to leave with you, it is of
to
aroused considerable speculation, are understood really to have been conthem
apply
you
and
Whether
stability
of
certainty.
the importance
debt or reparations or rules of the game, it is all the same. Whether you signed to the world bank, which is merely utilizing the Bank of England's
apply them to foreign policies or political parties, it is still the same. An vaults to store the gold safely. Indeed, none of the gold is being or will be
orderly functioning world must play the game according to some rules, stored with the Bank for International Settlements itself, the idea being to
and they should only be changed after ample notice and with the greatest keep it, like all the rest of the bank's money, deposited to the bank's credit
wisdom and the greatest care. The penalty of doing otherwise is destruc- in big government banks such as the Banks of England and France and the
Federal Reserve Bank of New York.
tion of confidence and constant disaster.
The gold thus far received has not been directly deposited with the
International Bank. Instead, the latter has been made trustee for this gold.
There is reason to expect, however, now that the ice has been cracked,
Gates W. McGarrah, President of Bank for International that the practice of placing gold on direct deposit with the world bank
ActiviDiscusses
Settlements Before Bankers' Forum,
will soon begin.
The present development, because of the small number of banks and
ties of Bank.
the small amount of gold involved, compared to the world's total, is naGates W. McGarrah, President of the Bank for Inter- turally insufficient to affect the gold transfer question as yet. Importance
national Settlements, who following his arrival in the is attached to it due to its being the first step, which it is held will greatly
the development of the International Bank as a gold transfer
United States early in November, discussed the opera- facilitate
medium. Once a number of Central banks merely follow the present lead
tions of the Bank before the Academy of Political Science in making the world bank the custodian of gold it would be easy for them
on Nov. 14 (to which we referred Nov. 22, page 3288) to avoid the expense of shipping gold by asking the International Bank to
transfer it on its books to the credit of another Central bank. It is believed
spoke on Dec. 3 on the policies of the Bank before the the
facilities which the world bank offers for such debit and credit operations
Bankers' Forum at the Hotel Astor. At that time a plea in gold would be more and more used until they became standard.
As it is, should the Bank of Spain need to ship gold to New York it now
for greater stability of policy in the field of foreign
need only ask the world bank to credit the gold in London for which the
Mr.
by
finance was made to the bankers of New York
latter is trustee to the Federal Reserve. It would remain then only for the
McGarrah, according to the New York "Herald-Tribune" Federal Reserve to ask the world bank to keep the gold in the Bank of
England's vaults as its trustee—until New York needs, say, to ship the
which reports him as follows:
"The extent to which banks in this country want to enter the foreign gold to Paris, whereupon the same bookkeeping operation would be repeated
and
the gold itself would thus never need to be moved.
field is a matter for their officers to decide after careful study of the
The fact that The Hague Treaty makes gold confined to the Bank for
question involved," Mr. McGarrah said. "But let me say that after
expected
they have entered it, much good will is frequently lost again by sudden International Settlements exempt from seizure in time of war 18alarms in
to stimulate this movement, especially in view of the rumors and
withdrawal of money. I would like to suggest here that you determine
Europe
Just
now.
carefully the lines along which you are willing to grant loans, but once
The Bank of Spain's action in confiding gold to the world bank is underyou have determined, why not allow them to remain?"
stood to be part of its plan for stabilizing the peseta.
Mr. McGarrah prefaced this advice with a brief outline of the character and organization of the Bank for International Settlements, in which
he described how the institution, originally intended as a trustee for the
German reparations payments, within a few months has become an
agency for the stabilizing of the monetary world market, which, he said,
is so easily upset by the tactics he criticized.
"The collection of the monthly installments of the German reparation
annuity and their distribution have rapidly become mere routine business,
representing the smallest part of the Bank's activities," he said. "The
outstanding achievement of the Bank, if I look back over the few months
of its existence, has been the collaboration of the central banks of all
countries which it has brought about. These central institutions, which
as yet were isolated, are now given an opportunity to have their heads
meet regularly and discuss their problems."
While details of the Bank's activities must be kept secret, he said,
because their publication would only advertise those undesirable economic
conditions which the bank is endeavoring to correct silently, he outlined
the fundamental policies and principles of the institution.
The investment policies of the Bank, Mr. McGarrah said, are guided
by the consideration that it is not its aim to make large profits, but to
improve foreign credit. Of the principles evolved for the activities of
the institution, he mentioned that of maintaining a high degree of liquidity, in order to have capital on hand at any time for the relief of tight
money markets. No money, he added, is invested for more than two
years, and 10% only for more than six months.
To move capital to where the currency is seasonably weak is another
principle of the Bank. This had resulted in the Bank's buying of German
reichsmarks during the recent depression on the German money market.
Investments in foreign markets were made only with the consent of the
respective central Bank, a principle which gives to that Bank a vote in
its field. This vote, however, had never been used, and the bank always
had found the most encouraging co-operation from the national central
Banks.
One of the studies now being conducted by the Bank for International
Settlements, he said, is that of the possibility of the organization of an
international gold clearing system. The bank might receive gold deposits from the central banks of all countries, and by transferring them
from one country to the. account of the other, prevent simultaneous gold
movements between two countries in both directions.
No Moratorium Plea Made by Our Debtors—Washington
Puzzled by Owen D. Young's Call for Change in
War Debts.
From the New York "Times" we quote the following
Washington dispatch Dec. 4:
Considerable speculation was aroused here to-day by Wednesday's
New York speech of Owen D. Young, one of the authors of the German
reparations settlement, in which he expressed the opinion that there
should be some readjustment in foreign debts to the United States because of the world-wide business depression.
Officials were somewhat puzzled, although they supposed Mr. Young
believed it might be economically sound temporarily to check the movement of gold to the United States through debt payments at this time
because of the international exchange situation.
It was pointed out that the foreign debt agreements provide that the
debtors may, upon not less than 90 days' advance notice to the United
States, postpone payment for not more than two years.
This clause in the debt pact gives the debtor adequate protection, in
the opinion of officials. It was declared, however, that so far no notices
had been served on the Government that the debtor nations plan to take
advantage of this provision of the agreements at this time. One official
pointed out that the economic situation in France, one of the most important debtor countries, is at least as good as In the United States.
Postponement of payments at this time would embarrass the Government somewhat, with a deficit of 3180,000,000 anticipated next June 30
and a surplus of only $30.000,000 estimated for the fiscal year 1932. The
Treasury is counting on about $184,000,000 in interest payments in each
of these fiscal years.
Dr. Luther of Germany Urges Revision of Debts—Head
of Reichsbank Stresses Need for Adjustment Because of Burden on Germany.
The following cablegram from Berlin Nov. 27 is from
the New York "Times":
the
From the New York "Times" of Dec. 4 we quote
Whatever may come of the demands for revision of her reparations,
following regarding Mr. McGarrah's remarks:
Germany will promptly and unequivocally meet her private obligations,
"Reparations payments represent only 20% of our total assets," Mr.
McGarrah said.
Pointing out that in five months the bank's assets increased from
300,000,000 Swiss francs to slightly less than 1,800,000,000 Swiss francs,
due mainly to the cooperation of central foreign banks which have deposited portions of their foreign currency with the new bank, Mr.
McGarrah described the three main aims of the Bank for International
Settlements as maintenance of great liquidity, promotion of trade and
commerce, and the movement of capital from markets where there is
a superabundant supply of it to markets where capital is needed.
The Bank represents a first germ for the creation of a foreign exchange interaational clearing fund, Mr. McGarrah said. What the Bank
and the more firmly she stands by her signature to the Young Plan the
more effectively will she be able to demand of her treaty opponents fulfillment of the obligations devolving upon them, was the declaration of
Dr. Hans Luther, President of the Reichsbank, to members of the Federation of German Industries to-day.
He said he hoped the growing realization of the dangers to international
economy inherent in the present reparation ssettlement would result
in a readjustment of those factors which require correction. Dr. Luther's
statements take on added significance in view of his recent conversations
with George L. Harrison, Governor of the Federal Reserve Bank of New
York, during the latter's visit to Berlin, and may be received as representing the dominating sentiments of German industrial circles.
DEC. 6
FINANCIAL CHRONICLE
1930.]
Stresses Need for Markets.
"Reparations can be paid only if Germany commands sufficient export
markets," said Dr. Luther, "and the Young Plan is feasible only if she is
able to command foreign capital at cheap interest rates, while our economic
energies can unfold themselves only when the pressure of short-time credits
disappears. The accumulation of capital abroad, as now witnessed in
France, must cease, as it is responsible for the sterlization of productive
agencies."
The seven-year-old Reichsbank, he asserted, had safely survived seven
lean years and was sufficiently entrenched to survive many times seven
years.
"Any one who doubts the stability of German currency must be impressed by the manner in which the Reichsmark weathered years of economic depression and political fermentation. Those doubting Thomases
who took their capital abroad now realize the falsity of their speculation,"
Dr. Luther continued.
"We must not allow the world crisis, reparations and the economic
transitional period through which Germany is now passing to paralyze
our energies. Germany will conquer, for the German people are too
sensible to yield to radical economic experimentation which would wreck
the existence of a nation confined to a small area and largely dependent
on foreign intercourse."
Rise of Gold Now a Factor.
Discussing reparations, the Reichsbank's head said Germany must
give added emphasis to the terms of the Young Plan which demanded
of the contracting parties the fulfillment of certain prerequisites on which
the plan rested. Be empahsized that the enhanced value of gold would
affect reparations. He said the low prices of commodities were an incentive to increased activities and that Germany's prospects depended
on the extent to which she could force a lowering of production costs and
price levels in all lines.
"The principle underlying the Dawes Plan postulated that Germany
Is to be assessed only according to her capacity. This holds good also
for the Young Plan, which further stipulates that the nation's vital needs
must remain unimpaired. No German appeal for revision would affect
the legal status of private debts, and, whatever may result from the discussions of a so-called moratorium or revision, Germany will not refuse
prompt payment of any obligations of a private character or the obligations
of individual creditors. Germany will meet her private obligations regularly
as they fall due.
"One ought to be able to assume that the growing realization of the
international economic dangers involved in the present reparations settlement would suggest the correction of conditions which should not be
allowed to remain unchanged."
To-day's meeting of the Federation's general commission was private,
and only the text of Dr. Luther's address was handed out for publication.
Although Finance Minister Bruening also talked to the industrialists, his
remarks, it was announced, were of a "confidential nature" and would
not be published.
Carl Melchior, Hamburg banker, one of the experts who drafted the
Young Plan, said after the meeting that Germany still was suffering
from "invisible occupation and a superabundance of obligations." Dr.
Ludwig Kastl, Chairman of the Federation's directorate and alternate
delegate to the Paris conference, said that as the obligations under the
Young Plan were greater than Germany's capacity at present, the reparations settlement could not be viewed as final. He asserted a clearly
defined reparations policy was needed.
The Federation was reported as being in harmony with the Government's program for fiscal and economic reforms.
3631
Peak Gold Output Puts Canada Third Among World's
Nations.
Canadian press advices as follows from Ottawa, Ont.,
Dec. 4, are quoted as follows from the New York "Times":
Canada mined more gold in 1929 than in any other year. and was third
among the nations of the world in production, the Dominion Bureau of
Statistics reported to-day. The year's output was valued at $39,861,663.
Only South Africa and the United States surpassed the figure.
Ontario led all Provinces and the Yukon Territory in production, the
report shows, with 1,622,267 fine ounces, followed by British Columbia
with 154,204 ounces. Ontario's total was more than half the production
for the whole country. Nova Scotia mined 2,687 ounces. Quebec, 90,798.
Manitoba 22,455, Alberta 5 and Yukon Territory 35,892.
$35,000,000 Cut From Reich Budget—Allowance for
Combating Alcoholism Reduced $250,000—War
Forces Lose $350,500,000.
A cablegram as follows from Berlin Nov. 20 is from the
New York "Times":
The fighters against alcoholism in Germany will have $250.000 less than
they had last year to combat liquor drinking, as the new Federal budget was
pruned to-day to that extent by the Reichsrat. A proposed fund for promoting vineyard cultivation also was cut $125.000.
There was no opposition to a proposed reduction of 1.000,000 marks for
"combating alcoholism," although the ensuing debate failed to reveal
whether sentiment held the fight futile or that satisfactory progress could
be achieved with a lesser expenditure.
Among other cultural centres hit by fiscal reform was the noted Berlin
Philharmonic Orchestra, which was denied a subsidy of $30,000, while the
herring fishery industry will have to get along with 860,000 less.
The Reichsrat's pruning shears cut in many directions and all told clipped
about $35,000,000 from the total appropriations. Of this $3,500,000 was
cut off the allowances for army and navy, although the sums demanded for
the "pocket battleships" Ersatz Preussen and Ersatz Lothringen were
allowed to stand despite protests of the Socialists. President von Hindenburg and General Groener, the Minister of Defense, remained adamant on
these items.
The budget as amended by the Reichsrat will not be referred to the
Reichstag.
Moratorium Doubted by German Bankers—Young
Plan's Provision—Only Communists Advocate NonPayment of Foreign Borrowings.
According to a Berlin message from Berlin Nov. 27 to the
New York "Times" a sharp decline on Nov. 24 on the Berlin
Stock Exchange in bonds of the "Young Loan" was due solely
to a report that the Reichsbank was passing coupons only
with reservation. The message continued:
This, however, was merely an automatic measure, due to the presentation
of coupons from certificates which were not in the hands of the individuals
presenting them.
Bankers regard the talk of a moratorium on reparations as baseless.
The general view is that the Young plan gives Germany the right to demand
a moratorium only on the ground of transfer difficulties, which the bankers
regard as altogether inprobable. References made in Foreign Minister
German Experts Call Gold Theory False—Research Curtius's speech to the Reichsrat, and the earlier statement on the same
by Chancellor Druening, are considered to have been made necessary
Institute Says Metal Supplies Do Not Cause Fluctu- subject
by the Reichstag election and the accompanying anti-reparation agitation.
ations in Prices--Credit in America Rose in Spite In other words, they were designed to plat ate the agitators.
Neither Minister hinted, however, at revision of the reparations on the
of Restrictions after War.
ground of transfer difficulties, but merely suggested that a change might be
The following Berlin cablegram, Dee. 4, is from the New necessary on general grounds. Although the Young plan does not authorize
a moratorium on such general grounds, it is felt that Germany can find a
York "Times":
moral claim in the falling off of world prices, which, if it extends to
A new price theory which contradicts the prevailing views of the relation good
manufactured goods will greatly increase her effective burden. On the
between gold production and Trice levels is advanced by the Institute
other hand, no German party except the Communists suggests repudiating
for Conjunctural Research, a branch of the official Bureau of Statistics.
the liabilities for foreign private debts. Toe "Nazis" have published
It reaches the conclusion that, while examination of the various gold theories
on international capital, and their program demands legislative
establishes a certain similarity in the movement of gold reserves and price attacks
reduction of interest rates, But even Hitler, in his post-election interview
levels, there still is no incontestable proof that gold supplies are the cause
denied that his party stands for repudiation..
of price fluctuations.
"The connection between gold and prices," says the institute's weekly
bulletin, "can be accepted as possible only if an increase or reduction of
Hungary Denies Move for Revision of Treaty of Verthe gold reserves of the central banks of issue determines a corresponding
sailles.
credit policy. The experience of past years, however, demonstrated that
economic movements or currents cannot be controlled with the application
Budapest,
From
Nov.
2, Associated Press advices are
of credit-political measures.
"On the basis of any given gold reserve no one volume of credit can be reported as follows:
so severely restricted as the advocates of the gold thesis generally assume.
The Hungarian Foreign Office, in an announcement for Premier Count
This was plainly indicated in the United States, where the Federal Reserve Bethien, said to-day that while Hungary had repeatedly demanded reBanks in the years following the war feared that the excessive influx of gold vision of the Versailles Treaty she had not, contrary to assertions in the
would lead to an unhealthy expansion of credit.
French and Czechoslovak press, concluded any agreement with other
"They promptly proceeded to withdraw the new gold arrivals from cir- countries jointly to demand such revision.
culation, thereby restricting available supplies, but, despite this precaution
This announcement was in connection with reports in Basle, Switzerthe volume of American credit rapidly expanded. It rose 23% between land, that the Premier had announced a formal agreement between Hungary
where
as
1927,
the
'gold basis' for this and several other neighbors to attempt to obtain a treaty revision.
1923 and the peak of prosperity in
credit volume was increased only 14%. In other countries, also the relation between credit volume and gold is considerably less rigid there is
generally believed.
German Rail Revenue Declines $166,000,000—General
"As the supply of currencies increased almost eight-fold between 1913
Reduction in Freight Rates Declared Impossible,
foundation,
their
gold
gold
with
compared
supplies
can hardly
and 1928,
but Coal is Favored.
be said to have been the decisive cause for the economic changes, A comparison of costs and production in the South African gold mining industry
The gross receipts of the German Federal railways for 1930
shows that falling production costs were accompanied by increased production and vice versa. Now. as production costs are purely the sum of will be $166,000,000 less than for last year, according to the
prices, the conclusion may be adduced that the production of gold is deter- estimates of the managing board. We quote from a Berlin
mined by price levels and not price levels by gold supplies. These con- cablegram Nov. 26 to New York "Times" which
likewise
nections lead to conclusions quite different from those postulated by the
gold theorists for if the production of gold is dependent on prices, and if on stated:
the other hand the volume of credit is only slightly affected by the supply
In view of the unfavorable situation, a general reduction In freight rates
of gold, then the accepted theory of interlocking causes between gold and Is declared to be Impossible. Such a reduction would further decrease retenable."
prices is no longer
ceipts and would necessitate a heavy curtailment in purchases of railway
This suggests to the Institute's experts that a third and hitherto unknown materials, including rails and cars, as well as in repairs and construction of
factor must be sought to account for economic movements. The solution new buildings, all of which would be undesirable from the point of view of
may be found, they suggest in the variegated periods of growth to which safety and the unemployment situation.
world economy is exposed and which produce an intensified demand in
On the other hand, the board admits the neceosity of assisting the
varying degree for gold and other commodities of world commerce.
Breuning Cabinet in its efforts toward a general price reduction. In
3632
FINANCIAL CHRONICLE
consequence it has agreed to a reduction in the freignt rate for export coal.
The board also is considering reductions in the rates for other essentials
of daily life, especially foodstuffs.
The unfavorable financial status of the railways is caused by the general
economic depression and necessitates a considerable cut in all expenditures.
including salaries, which, in accordance with Chancellor Breuning's pro gram, will be reduced from 6 to 20%•
Summarizing the situation, the board declares it is prepared to conduct
the State railways' business with the greatest caution.
Germany's Debt to Foreigners.
Associated Press advices as follows from Berlin, Nov. 27,
are taken from the New York "Times":
The Federal Statistical Bureau published figures to-day indicating that
Germany at the end of September owed foreign creditors on a balance
of investments at home and abroad roughly 17,000,000,000 marks (about
$4,250,000,000).
The Bureau estimated that Germany owed abroad about 26,000,000,000
to 27,000,000.000 marks, of which 11,000,000,000 were represented by
short-term loans, 9,300,000,000 on long-term loans, 4,000,000,000 on
foreign investments and 2,000,000,000 in foreign-owned realty. Against
this, German investments abroad totaled from 9,000,000,000 to 10,000.000,000 marks.
[Ver.. 131.
the world's credit requirements. He figured that in 10 years' time the
present gold production of $415,000,000 to $425,000,000, of which South
Africa now contributes about half, will have fallen to about 8275,000,000.
while in 15 years the South African production will not exceed $50,000,000.
Practically all the South African bar gold arriving in London to-day,
amounting to more than 85,000,000, was bought in advance by France.
Besides, there is the daily drain of about $1,750,000 being taken from the
Bank of England. France also purchased a further $5,000.000 in bar
gold, due here next week.
The "Daily Herald" reports that prospects of a gold famine formed one
of the main subjects of discussion between Montagu Norman, Governor
of the Bank of England, and George L. Harrison, Governor of the Federal
Reserve Bank of New York, during the British banker's hurried trip to
Cherbourg on Saturday, and declares that everybody will be affected by
the high price of gold, which will prolong the world-wide trade depression.
From mid-September to mid-November 3150,000,000 in gold left London
for Paris to strengthen the sterling rate of exchange, and the "Manchester
Guardian" says that rumors that the Bank of France is lending support
to the sterling rate will not surprise those who realize the extraordinary
position of the sterling-franc exchange.
France Finds It Difficult to Cut Down Retail Prices as
Urged by Premier Tardieu.
Retail prices in France remain obstinately high in the face
of the fall in wholesale prices says a message Nov. 28 to
Commons Votes to Raise Dole to $340,000,000—Debt of the New York "Times" from Paris, then further observing:
Fund Is Growing by $194,000,000 a Year.
Premier Tardieu's call upon retail dealers to reduce prices
From the New York "Herald Tribune" we quote the fol- was referred to in those columns Nov. 29, page 3453.
Tardieu correctly reflected public feeling in this matter when he exlowing (Associated Press) from London, Dec. 1:
By 274 votes to 214 the House of Commons to-night adopted a resolution
which increases the limit of Treasury advances to the unemployment fund
from £60,000,000 to £70.000,000 ($291,000,000 to 8340,000,000).
The unemployment fund provides the much-discussed dole, and tonight's resolution merely is a temporary measure to tide over the financial
difficulties of the fund until the newly established Royal Commission reports its findings on the question.
On the same date (Dec. 1) a cablegram to the New York
"Times" said:
Staggering figures showing the burden on the British Treasury of unemployment relief were given in the House of Commons to-night by Miss
Margaret Bondfield, Minister of Labor. When the MacDonald Government took office, she said, the debt on the insurance fund was 3180.000.000
and now,it is $280,000,000.
The present total of ordinary benefit and interest plus transitional benefit
from the Exchequer and the coat of administration amount to 8535,000.000.
The MacDonald Government insurance Act added 180,000 to the number
of claimants and $65,000,000 to the cost.
If the average number of the unemployed rises to 2,500,000, the amounts
paid out will exceed the revenue by 84,000,000 weekly and the fund will be
exhausted by March. The Government by a majority of 60 obtained borrowing power to increase the unemployment fund by $50.000,000 to $350,000,000.
The wholerquestion of unemployment insurance is to be investigated
by a royal commission under the chairmanship of Judge Holman Gregory.
horted retailers to make every effort to reduce their prices. All reliable
observers here agree that the heavy cost of living is attributable partly to
excessive taxation, but also to continuance of high wages for labor and
maintenance of the lately increase salaries of public servants.
,
•*1
Since, however, the policy has been pursued of proclaiming the country
prosperous and an economic crisis non-existent in France, it is naturally
difficult to broach reduction of wages or of public-service salaries. In
addition to the heavy cost of living to individual consumers, existing conditions are considered as tending to raise costs to industrial producers,
making competition with foreign rivals difficult. During several past
months, exports of manufactured goods from France have decreased while
imports of the same commodities were increased.
Premier Tardieu's call upon retail dealers to reduce prices
was referred to in these columns Nov. 29, page 3453.
$435,000,000 Surplus in French Treasury—Minister of
Finance Reynaud Quotes Figures in Reply to
Critics Who Charged That Reserves Had Been Used.
The following Paris cablegram Nov. 26 is from the New
York "Times":
The French treasury, which in 1926 was completely empty, had on
Nov. 15 a $435.000,000 surplus, Paul Reynaud, Minister of Finance,
announced to-day in the Chamber of Deputies. Out of that, he said,
could easily be spared 6200,000.000 for the work of National equipment
and still have an ample reserve for all emergencies. The financial situation,
Double "Dole" Is Rejected by British House of Com- he assured the Chamber, was to-day quite as good as when the present
Down.
Turned
Government took office a year ago.
Bonus
Christmas
mons—Plea for
The Finance Minister was replying to Government critics who had inUnder date of Dec.4 a message to the New York "Times" sinuated that the present Government had largely dipped into the reserves
left
by Raymond Poincare and Henry Cheron when the latter was Minister
from London said:
of Finance, and that it would no longer be possible to go ahead with the
A!plea for a double "dole" at Christmas for Great Britain's unemployed,
work of reconstruction which Premier Tardieu had proposed. During the
who have been increasing at the rate of 90 per hour, day and night, since
first seven months of this year, M. Reynaud declared, there had been a
the MacDonald Government took office 18 months ago, was made in the
revenue of 840,000,000 more than budgeted for. The reserves, therefore,
House of Commons this afternoon.
were still accumulating.
Miss Margaret Bondfield, Minister of Labor, thought it "legislatively
The financing of the scheme of National equipment which is proposed
whether
asked
impracticable," whereupon David Kirkwood, a Clydesider,
will be done by a grant of $200,000,000 from the Treasury. Another
it were "not practicable for us to be more generous this season of the year
$200,000,000 will be provided out of the budget during a number of years,
than at any other time."
and $250,000,000 will be raised by loans.
The legislators apparently thought not, at least with public money.
The Laborite, .7. MacGovern, recalling tlao recent State subsidy for
Covent Garden, thought it "more important to feed the bodies of the unSpanish Gold Reaches Liverpool.
employed than to feed the minds of the middle classes with grand opera."
From Liverpool, Dec. 1 Associated Press advices were
reported
as follows in the New York "Times":
Some
Inin
Wages—Reduction
Made
British
Course of
One million pounds sterling in gold (about 85,000,000), en route from the
dustries, but Increase in Others.
Bank of Spain at Madrid to the Bank of England at London, passed safely
A cablegram as follows from London, Nov. 28, appeared through Liverpool to-day under heavy guard. The gold arrived on the
liner
Orita and was transferred to automobile trucks and taken to the railin the New York "Times":
road
car.
There has been no material change in British wages within the past few
months, but on the whole the tendency is downward. During the first
nine months of the current year wages even in the coal industry were practically stationary.
the
Wages in the steel trade actually showed some increase, and in
transportation industry they rose appreciably. On the other hand, wages
considerably.
In the textile and building trades have declined
Cut in Industrial Wages in Rome, Italy.
Industrial wages in Rome have been cut by 8%, according to Milan advices to the "Wall Street Journal" of Dec. 1.
station and placed in a special
Belgian Loan.
From the "Wall Street Journal" of Dec. 1 we take the
following from Brussels:
Negotiations have been completed for issue of loan of 45.000,000 florins
bearing 4)4% interest, redeemable in 55 years maximum and callable in
1936. Loan will be issued in Holland, Switzerland and Sweden by syndicate headed by Mendelssohn Co., Nederlandsche Handels-Maatschappij
and Swiss Bank Corp. for purpose of redeeming balance of 1921 8% dollar
loan. Swiss portion of 24,060.000 francs is being offered at 9534 %.
Belgium to Refund Loan—Bill to Take Care of ObligaLondon Fears Gold Famine as Price Increases—Alarmed
tion in United States Passes, Socialists Abstainas Metal Rises 1% Cents to Highest Point Since
ing.
Montagu
Gov.
by
Discussed
April 1925—Subject
Under date of Nov. 26 Associated Press accounts from
Norman and George L. Harrison of New York
Brussels
published in the New York "Times" said:
Bank.
Federal Reserve
A bill for refunding the balance on the $30,000,000 loan floated in the
From the New York "Times" we quote the following United States in 1921 was approved by both Houses of the Belgian Parliament to-day. The vote in the Senate was 59 to 5 and in the lower House
London cablegram Dec. 2:
the price
Fears of a world gold famine took definite shape to-day when
of the metal rose 1;4 cents to $2044 per fine ounce—the highest level
touched since Great Britain returned to a gold standard in April 1925.
Lord Bradbourne, Chairman of the South African Consolidated Goldfields Co., declared that the supply of gold is even now insufficient to meet
97 to 2. There were 30 Socialist abstentions in the Senate and 66 in the
House as a protest against the approval of an external loan in violation of a
Government policy of abstaining from foreign credits.
The Finance Minister yesterday characterized the 1921 loan as one of the
most costly which Belgium was obliged to negotiate after the war and
Dile. 6 1930.1
FINANCIAL CHRONICLE
3633
asserted that the nation was anxious to pay it off as soon as the state of
the public finances permitted.
Argentina's Finances—Deficit for Year May Make
Necessary Dismissal of State Employees to Effect
Cut in Expenses.
Swiss Increase Duties—Advance for Typewriters and
From the New York "Evening Post" we take the following
Adding Machines Seen as Affecting United States. (Associated Press) from Buenos Aires, Nov. 26:
Faced with a deficit of 15,000,000 pesos (about $130,500.000) in meeting
From Geneva, Nov. 27 the New York "Times" reported
this year's expenses, the Finance Ministry, preparing next year's budget.
the following:
necessary to
State employees and workmen.
The Federal Council decided yesterday to increase import duties upon
foreign typewriters and calculating machines from the existing $12 to $50
per quintal (220 pounds) as the minimum. The maximum is $160.
Nearly 80% of the imports of these machines are of American manufacture, so it is considered the new measure, which comes into force Dec. 10.
is a reprisal against the new American tariff, which seriously handicaps
the Swiss export trade in watches and jewelry and has caused an increase
of unemployment in Switzerland.
Turkey to Dealy Payment—Able to Settle Only a
Third of $4,500,000 Due on Ottoman Debts.
From the New York "Times" we quote the following from
Istanbul, Nov. 25:
The Turkish Government was due to pay to-day coupons on the Ottoman public debt amounting to about $4,500.000. It is understood, however, that the Government has notified the Debt Council in Paris that
because of the present state of Turkish finances only a third of the amount
due can be paid The Council held a plenary meeting at Paris yesterday,
and further developments in this matter are expected.
Since Charles Hist, French financial expert, examined the Turkish
financial position last summer, it has been obvious in well-Informed circles
that Turkey would not be able to honor her Ottoman debt obligation in full
unless she received financial aid of some sort.
Turks May Seek Loan Here—Istanbul Hears Finance
Minister May Visit America for That End.
An Istanbul message Nov. 21 to the New York "Times"
said:
Dr. Tewfik Rushdi Bey, Turkish Foreign Minister, who was lavishly
entertained by the Soviet authorities on his visit to Russia last month,
may pay a visit to the United States.
Rushdi Bey, it is learned, has received an unofficial intimation that
the American Government would be glad if he cared to visit Washington
some time in 1931. It is considered highly probable that this invitation
will soon be made official. and Rushdi Bey is expected to accept
The passibility that he will visit the United States is linked here with
current reports that the Turkish Government intends to seek a loan in
that country. The Foreign Minister's presence in America would make
possible the discussion of such a loan, and he would be in a position to
state what guarantees the Turkish Government is prepared to offer.
Argentina Sends Gold to Pay Interest Here—Munson
Liner Western World Bringing 55,361,566—Nation's
Currency Shrinking.
as follows from Buenos Aires Dec. 4 is from
cablegram
A
the New York "Times":
The Munson liner Western World, sailing for New York tomorrow, will
carry $5,361,566 in gold for interest payments.
The provisional government's decision to withdraw gold from the gold
conversion office for the payment of interest on national, provincial and
municipal loans is saving from 15 to 20% on each remittance, but is causing a shrinkage in the country's circulating currency. Argentine law requires that 2 pesos 27 centavos (78 cents) paper currency be withdrawn
circulation every time one gold peso (80 cents) is withdrawn from the
gold conversion office.
The country's gold reserve has been reduced by $17,485,839 for interest
and service charges on loans since former President Irigoyen closed the
conversion office, resulting in the withdrawal of 40,000.000 Paper pesos
from circulation.
The gold reserve now totals $425,773,918 and the circulating currency
1,268,686,224 paper pesos. The gold reserve is 76% of the circulating
currency.
Shipment of $2,750,000 in Gold from Argentina Consigned to Central Hanover Bank & Trust Co.
Another shipment of $2,750,000 in gold has arrived from
Argentina on the Western Prince, consigned to the Central
Hanover Bank & Trust Co. by the Banco de la Nacion
Argentina, Buenos Aires. In announcing this Dec. 5, the
Central Hanover Bank & Trust Co. says:
The first official shipment of gold from Argentina this year, amounting
to $4,800.000, was received in November by the Central Hanover Bank
& Trust Co. The gold just received by the Western Prince is the second
shipment to the Central Hanover Bank & Trust Co., and the fifth official
shipment of gold from Argentina since December 1929, at which time the
Argentine government closed the Caja de Conversion.
As a result of lower prices for its principal commodities for export, the
Argentine peso has suffered sharp depreciation during the past two or
three months,the lowest point for the year of 32.30 being reached on Oct.14.
On the above date the Argentine Government decided to export gold to
prevent further depreciation and to support the peso. For the past five
weeks the peso has shown slight fluctuation and has varied only from
34.20 to 34.50.
Volume and prices of crops have an important effect on Argentine
exchange. During the bumper years of 1927 and 1928 when good prices
also ruled, Argentina imported more than 160 millions in gold. Poor
crops and lower prices in 1929 resulted in export of some $165,000,000
gold to this country and Europe.
Reports from Argentina are to the effect that the wheat crop has been
damaged to some extent by black rust. However, recent cables from
the Argentine express the opinion that the principal crops of the country
may well reach the average volume of the past five years.
finds it
dismiss 10,000
In order to avoid unemployment, if their discharge is decided upon, the
Government is studying a vast plan of road construction which will provide work for thousands of laborers.
Argentina Sets Clocks on Daylight Saving Time-4;
on Trial for First Time.
A cablegram from Buenos Aires, Nov. 30, to the New
York "Times" said:
Daylight saving time will go into effect for the first time in Argentina at
midnight to-night when clocks are set ahead one hour. They will be set
back one hour at midnight on March 31.
In the future daylight saving will begin on Sept. 1. The innovation will
be watched with considerable interest in view of the Argentine public's
reputed lack of social discipline and its intense individualist character.
Australia to Pay Bonus on Gold in Excess of 1929
Production.
Canadian Press advises from Canberra, Australia,Nov.27,
published in the New York "Times" said:
Australia will subsidize the production of gold. The Commonwealth
Labor Government to-day announced that it would pay on an equitable
basis a bonus of $5 for every ounce on all gold produced In Australia which
Is in excess of the total production last year.
The Labor party contends the bonus will attract several million pounds
of British capital and the extra production will provide for 50,000 persona
Australia's mineral industry constitutes about5% of her total production.
agricultural and industrial. Though she has contributed well over $3,000.000 to the world's gold supply, her gold production has been steadlly
declining from the record of E16,300,000 (about $80,000,000) in 1903, be-.
ing only about $10,500,000 in 1927.
Study of Economic and Financial Conditions in
Argentina by Swiss Bank Corporation.
The November Bulletin published by the Basle office of
the Swiss Bank Corporation contains an article devoted to
a study of the present economic and financial conditions in
the Argentine Republic. Some interesting estimates are
presented of the amount of foreign capital invested in the
various South American countries and in Argentina in particular, and incidentally there is given an estimate of the
amount of Swiss capital invested in these countries tending to show the substantial nature of the Swiss interests in
South America.
A recent American estimate is quoted showing that the
amount of English capital invested in the Argentine, Brazil
and Chile amounts at present to about $4,485 million as
compared with a corresponding figure of $3,835 million in
1913. Of the former total, $3,553 million is accounted for
by the Argentine. While the English interest has, during
the years which intervened since 1913, only increased by
about 24%, that of the United States is estimated to have
grown by about 168%. It is pointed out that Swiss capital
has always been interested in Latin American business,
many Swiss citizens having settled there either for industrial, commercial or agricultural purposes. The writer of
the Bulletin estimates that between Frs. 550 and 600 million may be taken to represent Swiss Capital invested in
the Argentine, Brazil and Chile, the greater part of this
total being accounted for by investments in the electricity
Industry.
The Bulletin contains a series of tables giving comparative figures illustrating the course of economic development in all branches of activity in the Argentine.
Italian Fascism Menaced by Ban on Loans, Europeans
Believe—Powers Are Said to Be Sounding Italian
Exiles on Policies if Returned to Rule—World
Bankers Also Reported to See War Danger in
Mussolini's Overtures to Ex-Foes.
The following Basle cablegram Dec.3is from the New York
"Times":
Financial pressure on Italy is understood to have been tightened, apparently In the hope of realizing some progress in the naval negotiations with
France at Geneva in the few days left for them before the Preparatory
Disarmament Commission ends its meeting.
The situation rising from this and other factors are considered in some
high quarters to place Premier Mussolini so much between the devil and
the deep sea that there is serious speculation behind the scenes as to how
long the Fascist regime can survive.
Conditions are so serious that it is understood certain powers are already
throwing an anchor discreetly to windward by renewing informal contacts
with leading anti-Fascisti exiles to learn what their policies would be if
they should return to power..
3634
FINANCIAL CHRONICLE
Italy Finds Ban on Loans.
The world economic and financial depression is known to be hitting
Italy harder and harder, because her margin of prosperity is normally
thin and because the lira was stabilized too high. Bankers say the lira
Is now weaker than the German mark. Italy has been trying to meet
the pinch by getting a loan, but has found the doors closed because of
naval difficulties with France and because of her policy of working with
Germany and Russia.
The United States State Department's denial that it had been approached
directly or indirectly, by Count Volpi on the subject of an Italian loan is
not considered to diminish the importance of the report that Count Volpi
gained the clear impression in New York that bankers would give Italy no
loan unless Italy settled her naval quarrel with France and abandoned her
present policy regarding Germany, Russia,Central Europe and the Balkans,
which bankers considered "too adventurous" to make a loan a sound investment and indicated the loan would be used for war purposes.
It is further said that not only France but Britain shares this attitude,
which they consider to be not merely that of Wall Street, but of Washington,
and that, in view of this solidarity, the smaller money markets, to which
Italy is understood to have applied lately, have closed their doors the same
way.
Dangerous Situation Seen.
There is excellent reason to believe Britain and America consider, to put
it baldly, that Italy's European policies have already created such a dangerous situation that the time has come for Italy to choose whether to
join the Big Powers' Club by entering the London Naval Treaty or to continue to seek funds elsewhere.
The difficulty for Italy is not merely that she had insisted so strongly
for parity that it is hard to back down. The main reason is that Premier
Mussolini has demanded all-round parity so tenaciously because the previous
regime obtained battleship parity from France at Washington.
Since the Fascisti threw out this regime as traitors they would give
the anti-Fascisti a formidable weapon if they failed to get the same parity
in cruisers, &c. The oceanic powers are willing to try to help Italy to find
a solution which will save her face but the months of negotiations apparently have revealed no good face-saving formula.
If Italy backs down on the naval question to get a loan, the Fascist
regime would be weakened politically while if it stands firm it loses the
loan, and the economic and financial difficulties are liable to nourish
serious domestic discontent. In either event Premier Mussolini risks playing into the hands of the anti-Fascisti.
While Rome is poised between the horns of this dilemma,advicesreaching
Basle from Italy indicate the domestic situation is growing more difficult.
The measures Italy has taken to meet the economic pinch,such as reducing
salaries, are understood to be leading her into deeper complications and
producing such a bad psychological effect that certain powers are beginning
to doubt the solidity of the Fascist regime.
Meanwhile the way is being prepared for France to enter the London
Naval Treaty as a fourth partner.
Fora. 131.
Rumania. In the background Dr. Willis indicated there is the sharp
drop in the prices of raw materials which Rumania exports, and the keen
competition of Russia in the sale of such materials in the markets.
Need for Capital.
"Rumania needs large amounts of foreign capital for investments of
a productive nature," Dr. Willis indicat xi. At the present time, the
French bankers alone appear willing to advance much money to Rumania,
and they insist upon special safeguards of a type which prevent the
free flow of French capital into the country. Accordingly, a more rapid
development of the unquestionably rich natural resources of the country
would depend upon the ability of Rumania to interest the bankers of
other countries, and notably of the United States, in her development.
In a formal statement discussing his survey of Rumanian economic
and
financial conditions, Dr. Willis said:
"I have been spending some three months in Rumania at the invitation
of the Rumania Government; and am just returning from Bucharest.
During my visit, I traveled through nearly all the provinces of Rumania
with a view to examining into their economic and industrial position. I
have filed an interim report of my findings with the Government, and a
more complete discussion of the situation will shortly be completed and
published.
TWO Coiled States Concessions.
"The country is rich, with immense possibilities of development, which
only begin to be appreciated by American capitalists. Two groups are
now at work there: The International Telephone & Telepgrpb Co. and
the Electric Bond c6 Share Co., the former with a definite franchise and
the latter with the prospect of arranging a satisfactory electric power concession. Other American interests are also looking over the ground, and,
I believe, important schemes of development will not be long delayed.
"Rumania is to.day politically more stable than for a long time. King
Charles is a hardworking executive, who is devoting himself to the public
business. The country suffers from the present world crisis, as all countries, and especially all the agricultural countries, are doing. But it is
making great economies in order to maintain a balance of the budget,
and it is doing much to improve administrative control of outlay.
"I believe Rumania will have a brillian economic future if undisturbed
by external politics. Her resources of gold, coal, natural gas, oil
and
other essentials, and her rich soil, assure prosperity. It should be the
mission of other European countries to bring about her unhindered growth."
Greek Bonds Placed in London
The following from London is taken from the "Wall
Street Journal" of Dec. 5:
Hambros Bank, Ltd., and Erlangers & Co. have placed privately in
London £500,000 7% mortgage bonds of National Mortgage Bank of
Greece at 96, representing the balance of £2,000,000 which the Mortgage Bank was authorized to issue. Last April, £1,000,000 was placed
in London, while £500,000 was placed privately in Athens recently by
the National Bank of Greece.
Washington Balks Italian Loan Plan—Project to Borrow $100,000,000 Here Dropped After Accord is
Reached—Volpi Visit Failure.
The following is from the New York "Evening Post" of Argentine Province of Santa Fe Pays Interest in New
York with Gold and Saves $93,883.
last night (Dec. 5):
Negotiations for a large Italian loan believed to exceed $100,000,000, have
The following cablegram from Santa Fe, Argentina,
been abandoned after weeks of conferences, it was learned by the "Evening
Dec. 3 is from the New York "Times":
. Post" to-day.
The Province of Santa Fe saved 272.125 pesos, or $93,883, at to-day's
The proposed loan, terms for which had been agreed upon, would have
been made direct to several large Italian hydro-electric companies controlled exchange, by making its recent interest payments in New York in gold
by Count Volpi, but would have been in the interests of the Italian Govern- instead of dollar drafts.
The Province paid 6510,616 interest and service charges on the American
ment, it was said. The bonds were to have borne interest at the rate of
loan, which at the current exchange rate would have represented 1.487,168
73‘ to 8%.
paper pesos. The Minister of Finance and the Bank of the Nation deWashington Balks.
livered to the Province gold at the fixed legal rate of 2.27 paper pesos for
The insurmountable obstacle to the loan was encountered in Washington, every
gold peso, with the result that the gold cost the Province only
It was believed, for the negotiators were made to understand that the
1,215,043 pesos. The saving on the operation was slightly more than 18%.
United States would not approve 81.1Ch a loan either in behalf of Italy or any
other foreign Government at this time. The Italian Government is believed
In Wall Street to have been subjected to increased financial pressure lately Argentina Will Cut Expenditure to
Limit—Provisional
In spite of unofficial denials that assistance In the form of a large loan had
Government Decides That It Has No Authority
been sought in this country.
to Create New Taxes.
Whether or not the talks with State Department officials gave the
conferees hope that negotiations might be revived later could not be learned.
From Buenos Aires Dec. 4 a cablegram to the New
In connection with the reported loan discussions. Beniamino de Ritis, in
York "Times" said:
behalf of the Italy-America Society, said:
One hundred and twenty bureau chiefs will meet at the Government
Statement Made.
House to-morrow afternoon to receive imperative instructions from Pro"With reference to the circulated rumors that Italy was refused loans
visional President Uriburu to cut their expenditures to the lowest possible
from American bankers, I beg to notify you thatfrom the most authoritative
minimum, to enable the Provisional Government to keep the national
sources we have been informed that Italy is not seeking any loans. It is budget
within estimated revenue, which for the forthcoming year is placed
worth recalling in this regard that the Italian Embassy had given out a
at 650,000.000 pesos ($275,990,000)•
statement denying such utterly unwarranted rumors.
The Provisional Government has decided that it has no legal authority
"American financial leaders who have been in Italy recently, and who
to create new taxation, and must therefore finance itself from revenues
have been received by Mussolini, reported that Italy has no desire and no
already existing. This will require the strictest economy in all departneed for loans. Italy is perfectly capable to carry on her economic recovery
ments and the elimination of many offices now overlapping or duplicating
by her own means and by the proper measures taken by the Government functions.
In reducing the expenses,salaries and cost of living, according to the revaluaLeading newspapers express the hope that this innovation of keeping
tion of the lire and the principles of the corporative state."
expenditures within resources will continue after the Provisional Government retires.
Although the Federal Commissioners acting as Governors of Provinces
Dr. H. Parker Willis Finds Rumania Making Progress
under the Provisional Government are endowed with legislative as well
in Face of Obstacles—Returns After Making Sur- as administrative attributes, they have been instructed by General Uriburu
vey for Government—American Firms Seeking Con- that they are not to exercise the legislative functions of creating new
taxation, borrowing money or floating bonds or other provisional obligations.
cessions There.
All these Federal Commissioners will be called to Buenos Aires soon
Fundamental progress in economic reconstruction and to receive budget instructions from President Uriburu.
development is being made by Rumania in the face of enormous obstacles, many of them of a political variety, Dr. Finances of Argentine Province Show Improvement
Under Provisional Government According to
H. Parker Willis, editor of the "Journal of Commerce," said
Report from Finance Minister of Santa Fe.
on Dec. 4 on his return from that country after a stay
of several months. The paper indicated, from which we
Evidence of improvement in the administration, and
particularly in the administration of finances, of the Province
quote, added.
Dr. Willis visited Rumania at the invitation of the government to of Santa Fe, Argentina, are contained in a cable directed by
make a thorough study of the economic and financial situation there, and Alexander E. Bunge,minister of finance and public works of
his report bas already been presented to the Rumanian authorities.
the province, to the Chatham Phenix Corp. This report,
Past political differences within the country and lack of adequate
financial resources from abroad for capital investment were said by him which brings official information on the progress of the new
to constitute the two major obstacles to the recent economic progress of provincial government which has been functioning since
DEC. 6 1930.]
FINANCIAL CHRONICLE
3635
is President of Colombia Asks New Revenues to Wipe Out
Sept. 6, also indicates that the provisional government
rial
indust
and
ltural
agricu
Deficit—Sends Special Plea to Congress for Hasty
the
with
ively
co-operating extens
ating
stimul
by
ty
activi
ss
Action—Would Raise Many Taxes.
leaders toward increasing busine
4,
general
ving
impro
and
tion
produc
of
cost
New York "Times" in a Bogota cablegram, Dec.
the
The
ng
loweri
and
:
saying
as
is
quoted
say:
Bunge
to
Senor
ing
has the follow
economic conditions.
nt Olaya Herrera's message
The serious fiscal situation outlined in Preside
measures were necessary for
to Congress on Sept. 15, which indicated that
and prerequisite for obtainthe cancellation of the deficit and Indispensable
attention of Congress last night
ing further foreign credit, was called to the
of the necessity for early
in a special message from the President warning
ment. The special message
action on the recommendations of the Govern
the new items of revenue resays it is imperative for Congress to include
an unbalanced budget it would
quired to balance the budget because with
credit.
be impossible to obtain more foreign
emergency revenue bill subThe President urges Congress to pass the
8, because the 1931 budget
mitted by the Minister of Finance on Oct.
additional revenues are not made
would be fundamentally impaired if such
available.
national railways, with the
Although the reorganization of customs and
railroad franks, may increase
suppression of many customs exemptions and
te balancing of the budget by
revenues, it is impossible to expect immedia
ned to assign certain revenues to
these steps alone. If Congress determi
the National Government new or
States and municipalities it must give
compensating revenues the President said.
budget is not approved by Dec. 15
He calls attention to the fact that if the
will become effective. This situation.
the previous budget automatically
able evils, upsetting present plans
says the President, would bring incalcul
a large bank debt due on Dec. 31.
n
with
ment
Show
tion
Govern
Situa
the
ess
leaving
Busin
Bad
and
Argentine Failures Rise—
provide for five years taxes on insurThe emergency revenues law woule
Also by Drop in Bank Clearings.
companies and on soft drinks, an
ance premiums in domestic and foreign
,
double the present sales tax on domestic matches
The New York "Times" reports the following from increase in the beer taxes,
d matches and toilet articles and an
importe
on
duties
present
the
double
Buenos Aires Dec. 2:
the gasoline tax.
0,000), the increase in
ing between the Government and
November bankruptcies totaled 28,500,500 pesos ($12,00
Meanwhile, negotiations are proceed
less
the National City Bank to arrange for
largest month since February, but were 5,000,000 pesos ($2,000,000)
a banking syndicate headed by
deficit comprising $18.000,000 in new
than in November of last year.
financing to cover the $30,000,000
The failures to date this year total 205,000.000 Pesos ($87,000,000). financing and an extension of $12.000.000 in short-term loans.
months of
compared to 155,000,000 pesos ($65.800.000) for the eleven
last year.
Buenos
the
by
shown
better
n for Redemption.
The unsatisfactory business situation is even
Bonds of Republic of Finland Draw
Aires Bank clearings, which show a decrease of20,000.000 pesos($8,500,000)
York announces, as fiscal
in daily check clearings in the Federal capital alone.
The National City Bank of New
,000,000), the
pal amount of Republic
princi
November clearings were 2,707,000,000 pesos ($1.149
ate
months was also the agent,'that $115,000 aggreg
lowest in five years, and the total for the eleven
g fund gold bonds, due
sinkin
loan
al
extern
55%
d
of Finlan
lowest in five years.
an amount exceeding the
October revenue collections totaled $2,249,850,
s year by more than 82%.
maximum October collection of any previou
ionately over previous
November revenues are expected to increase proport
ons were 51,231.050.
November collections. October 1929 collecti
of the present provisional
Economies realized during the two months
saving of $1,273,500;
administration are expected to result in an annual
by the end of the year so as
and it is planned further to reduce expenses
. Provincial authorities
to effect an annual saving of twice that amount
s, and expenses will be
have made a very prudent estimate of 1931 revenue
.
loss than in 1930. No new taxes will be created
s under special laws.
Since the advent of the new government, all deposit
established, and all public
have been made, all municipal funds have been
their monthly obligaworks commissions have complied punctually with
eduction, which absorbs
tions. The administration and the board of
been normalized.
nearly one-third of the revenues, have already
ction, for which internal
We will soon begin authorized highway constru
employment for several
provide
finasicing has been arranged and which will
ng of representatives of
thousand workers. Public commissions, consisti
enthusiastically with
production, industry and commerce, are co-operating
the government in solving economic problems.
Brazil Restricts Banks—Government Sets Limit on
Exchange Bills, Keeping Close Watch.
A Sao Paulo cablegram Nov. 29 to the New York "Times"
said:
redemption at par on
Feb. 1 1958, have been selected for
unmatured interest
all
with
bonds
Drawn
1931.
1
Feb.
at the head office
dered
surren
be
coupons attached should
after which date
next,
1
Feb.
on
Bank
City
al
Nation
of the
interest shall cease.
not support exchange
The government, despite assurances that it would
ry to present
transactions, kept a close watch over them. It was necessa
a special bureau
and
milreis,
bills of exchange with reasons for buying
0) in exchange
permit to buy them. Each bank is limited to £5,000 ($24.35
per day until further notice.
labor
situation.
Government intervention in the strikes is easing the
including the Armour and ConMany settlements were reported to-day,
tinental Canning companies.
Cancellation.
Bonds of City of Leipzig Purchased for
sed for canSpeyer & Co., as fiscal agents, have purcha
of the
bonds
00
$155,5
fund
g
cellation through the sinkin
of 1926. This
City of Leipzig 7% sinking fund gold loan
represents the 1930 sinking fund instalment.
Idle in Brazil Increase-50,000 Unemployed in Sao Paulo
n Due Dec. 1
Receipt of Funds for Payment of Coupo
Cause Concern to Consuls.
Bank.
rian
Hunga
on Bonds of British &
A Sao Paulo cablegram Dec. 1 is taken as follows from
announce
s,
banker
ment
invest
Ames, Emerich & Co., Inc.,
the New York "Times":
1 1930 coupon on
State is increasing daily, with
The number of unemployed in Sao Paulo
Janeiro, where to-darthere was a
the same condition obtaining in Rio de
parade of several thousand idle.
Paulo is also causing concern to
The unemployment situation in Sao
Spain and Italy, which to-day
the foreign consulates of Germany, Poland,
needy,sending some others home.
began the co-operative care of the most
to comply with the new labor
Many small companies here are unable
decrees and are closing down.
here number 50,000.
oyed
unempl
At a conservative estimate the
Dec.
receipt of funds sufficient to pay the
of the British and Hunthe 7%% sinking fund gold bonds
garian Bank, Ltd.
& Exchange Bank
Bonds of Hungarian Discount
Retired Through Sinking Funds.
s, have reAmes, Emerich & Co., Inc., investment banker
Bank 7%
nge
Excha
and
nt
Discou
rian
ceived $13,500 Hunga
Costa Rica Seeks Loan—President Signs Authorization sinking fund gold bonds, due July 1 1963, which completes
to $2,750,000 Bonds.
1 1931 on this issue.
the sinking fund installment of Jan.
Under date of Dec. 3 the New York "Times" reported the The total amount of bonds retired, including those menleaving $3,337,000
following from San Jose, Costa Rica:
tioned above, amounts to $63,000 bonds,
bill authorizing a loan of $2,750,President Clete Gonzales has signed the
nding.
and
in
street
the
paving
outsta
ction
complete roads now under constru
000 to
8.5%. If a lower rate is obtained
capital at an interest rate not to exceed
proportionately, as the measure originthe amount of the loan will increase
ally was for a loan of $4,000,000.
and liquor taxes and by any hitherto
The loan will be guaranteed by land
ry.
unpledged customs revenues if necessa
Santo Domingo Looks for $40,000,000 Loan—Dominican
Secretary of State Confers with Bankers in New
York—Will See President Hoover.
s"
The following is from the New York "Time of Nov. 30:
and four members of the CominiNegotiations between American bankers
of between $40,000,000 and $50,000,000 to
can Government for a loan
"a most hopeful stage," Rafael Vidal, SecreSanto Domingo have reached
Cabinet and ex-officio participant in the contary of State in the Trujillo
Press yesterday.
ted
versations, told the Associa
ors were reasonably confident of attainHe said the Dominican negotiatand would express that view to
here
President
ing the object of their visit
him early this week to convey President
Hoover when they called on
Trujillo's respects.
The loan is sought to carry out an investment program of the Dominican
Vidal called "the same crisis in Santo
Government to prevent what Mr.
in its grip—unemployment, hard
Domingo which has the United States
be applied to reconstruction in areas
would
times," Little of the money
.
which suffered during the recent cyclone
lled Through
Portion of City of Tokio Bonds Cance
Sinking Fund.
York, announces
The Yokohama Specie Bank, Ltd., New
sinking fund
1930
the
out
d
carrie
has
that the City of Tokio
purchases on the market
by
1912
of
loan
5%
the
of
ion
operat
are now cancelled.
of bonds of £118,000 nominal, which
Bonds Drawn
Republic of Chile Railway Refunding
.
ption
Redem
for
York, as fiscal agent,
The National City Bank of New
railway refunding
announces to holders of Republic of Chile
Jan. 1 1961, that
due
bonds,
al
extern
gold
sinking fund 6%
t of these bonds have
$266,000 aggregate principal amoun
at par on Jan. 1 1931. Drawn
been selected for redemption
st coupons attached should
intere
ured
unmat
all
with
bonds
of the National City
office
head
the
at
be surrendered
date interest shall cease.
Bank on Jan. 1 next, after which
3636
FINANCIAL CHRONICLE
[VOL. 131.
Tenders Asked for Purchase of Argentine
Government J. R. Clark Jr. Assum
es Post as United States AmBonds Through Sinking Fund.
bassador to Mexico Succeeding Dwight
W. Morrow.
J. P. Morgan & Co. and the National City Bank
of New
On Nov. 28 J. Reuben Clark Jr. presented
York, as fiscal agents, have notified holder
his credentials
s of Government as Ambassador Extraordinary
and Minister Plenipotentiary
of the Argentine Nation external sinking fund
6% gold of the United States, succeeding Dwigh
t W. Morrow, to
bonds, issue of June 1 1925, due June 1
1959, that $303,146 President Pascual Ortiz Rubio at a privat
e ceremony in the
in cash is available for the purchase for
the sinking fund of National Palace. A Mexico City cablegram
to the New
such bonds as shall be tendered and accept
ed for purchase York "Times" in indicating this further reported
the cereat prices below par. Tenders of such bonds,
monie
s
as follows:
with coupons
due on and after June 1 1931, should be made
Mr. Clark was escorted from the embass
to the office
y to the palace and back to the
embassy by
of J. P. Morgan & Co., 23 Wall Street, or
squadrons ofcavalry in gala uniform. He
was accompanied
the head office by the Chieftwo
of
Protoco
l of the Mexican Foreign Office
of the National City Bank of New York, 55 Wall
by Arthur Bliss
Street, Lane, the American Embassy Counsellor, and the entireand
embassy staff.
before 3 p. m., Dec. 31. If the tenders so accept
At 12.30 o'clock President Ortiz Rubio
appeare
d in the reception salon of
ed are not the palace,accompa
nied by the Minister of Foreign Affairs. Genaro
sufficient to exhaust the available moneys, additi
Estrada,
onal pur- and the Presidential headquarters
staff, headed by General Agustin Mora.
chases upon tender, below par, may be made
"Mr. President," said the new Ambass
up to regret
ador, "it is with genuine personal
that I present the letters of recall
Mar. 2 1931.
of my illustrious predecessor,
Dwight W. Morrow, who relinquished
his post here to enter the United
With $207,836 in cash available for the purcha
se of Gov- States Senate. Mr. Morrow was and remains a true friend of Mexico and
of her people."
ernment of the Argentine Nation external sinkin
g fund 6%
Presenting his own credentials, Mr. Clark
gold bonds of 1924, series B, due Dec. 1 1958,
conveyed a message of friendthe Chase ship and good-will from the people of the United States
to the people of
National Bank of New York invites tenders
Mexico and President Hoover's personal
greeting to President Ortiz Rubio.
of such bonds Then, alluding
to his own friendship for the Mexican
at a flat price below par. Tenders, with coupo
people, among whom
ns due on he has lived, he added:
and after June 1 1931, should be delivered at
"History records and experience demonst
the trust de- arising
rates that there are no questions
between nations which may not be adjuste
partment of the bank, 11 Broad Street, before
d peaceably, as well as
3 p. m., with reciprocal advantage,
if such questions are discussed in kindly
Dec. 11. If tenders so accepted are not suffic
candor
with
mutual
appreciation of and accommodation to
ient to exhaust
the viewpoint of each
by the
the moneys available, additional purchases
and with patience and desire to work
out a fair and equitable
by tender, below settlemother
ent. It is in that spirit that I take up the
par, may be made up to Feb. 28 1931.
performance of my official
duties."
Redemption of Bonds of Republic of Colombia.
Hallgarten & Co., and Kissel, Kinnicutt & Co.,
fiscal
agents for the $25,000,000 Republic of Colombia
6% external
sinking fund gold bonds, dated July 1 1927,
announce that
the Republic of Colombia have delivered to them
$216,000
principal amount of bonds, which have been
redeemed
through the sinking fund, leaving $23,841,000
par value of
bonds outstanding.
Alluding to former Ambassador Morrow,
President Ortiz Rubio said:
"I share your view that he was a sincere
friend of my country and of the
Mexican people. Your own message of
friendhsip and good-will for Mexico
and the message you bring from the
President of the United States are
reciprocated sincerely by me in behalf of my
country
"I appreciate to the fullest extent your express .
ion of personal sympathy
for our struggles and aspirations, and you
will find here every assistance in
perfecting the excellent understanding between
our two republics.
"All we want is, in our relations with other
countries, to develop sincere
harmony, justice and equity."
Mr. Clark received the foreign correspondents
this afternoon at the
embassy. Asked whether he would serve
liquor on the embassy premises
during his term of office, he said:
"I have decided not to serve alcoholic beverag
es in the embassy during my
term in this post."
Peruvian Government Interest and
Sinking Fund
The appointment of Mr. Clark to the post
Requirements Received in New York.
was noted in our
issue of Nov. 11, page 2322.
J. & W. Seligman & Co. and the Nation
al City Bank of
New York, fiscal agents for the Republic
of Peru, announce
that they have received the entire amount
required for Proposal for Declaration by Mexico of Debt Moratorium
Interest and sinking fund payments due up
—Four Deputies Submit Proposal to Chamber
to Dec. 1 1930
for
on Peruvian National Loan Bonds, First and
10-Year Foreign Obligation Delay—Hope
Second series.
to Pay
Of the First series, $290,000 have been drawn
More
Later—Would Use $12,500,000 Provided for
for redemption on Dec. 1.
Interest in 1931 Budget for Internal Developmen
t.
The following Mexico City cablegram Nov. 29 is
from the
Bonds of State of Sao Paulo Drawn for Redem
ption. New York "Times":
A proposal has been submitted to the Chamber of Deputie
Speyer & Co. and J. Henry Schroder Banking
s by Cipriano
Corp. an- Arriol, Enrique
Hernandez Gomez, Enrique Soto Peimbert
nounce that the fifth drawing for the sinking fund
and Simon
of the Puentes, Deputies representing the State of Chihuahua, that
Mexico deState of Sao Paulo 40-year 6% sinking fund gold
clare a 10-year moratorium on her foreign
indebtedness and apply the
bonds of 25,000,000 pesos
(about $12,500.000) assigned for the paymen
1928 has taken place and that the $52,500 bonds
t of interest
so drawn in the budget for 1931 to various purposes.
will be payable on and after Jan. 1 1931, at
The latter would include irrigation works, road
par, at either
constru
ction,
the development of National industries in general, the
of their offices.
augmentation of the
capital
of labor and agricultural credit banks and
the creation of more
rural schools throughout the Republic.
The proposal is regarded in some quarters as an
effort to insure internal
development which will later enable much larger
payments to Mexico's
International creditors, at the same time
tending to a solution of the economic crisis which has resulted in a heavy adverse
balance of trade. The
theory propounded is not new, but over the signatu
re of the four Deputies
the projectis likely to receive the Chamber's
detailed consideration.
Sees Means Justified.
The proposal, after noting that in the budget
submitted for 1931 25.000,000 pesos have been set aside for payment of
interest on the foreign
debt and 15,000.000 for interior indebtedness,
declares that in a period
of reconstruction of the country such as the present
It is understood that the French Military Mission
, which, since the
the four Deputies
feel all the Republic's resources should be used to
World War has been training the Brazilian Army, also
create new sources of
will be terminated.
production and that every effort to such an end is justifie
In both cases a desire for economy was given as the reason
by the Brazilian
d.
Government, which has paid the expenses of the mission
Many nations further advanced in general economy
s.
than Mexico have
declared
The American Naval Mission first went to Brazil in 1922
for a four- ficulties moratoria, it is stated, and in view of the latter's prolonged difit is felt she has more right to such measures.
Year period. The contract was renewed in 1926, for four years,
which
The four Deputies, therefore, suggest careful study
terminated Nov. 6 Since then the Mission has remaine
d while the Rio
of their plan for
a
de Janeiro Government was considering whether the
moratorium for 10 years before renewing payments
contract should be
on Mexico's foreign indebtedness, declaring that under such conditi
renewed.
ons she should be
able to fix much larger annual payments once her
It is understood, however, that some American naval officers
production is fixed
may on a
be retained individually to aid in developing the Brazilian
firm basis. With regard to payments on internal
Navy. There
indebtedness, the
sponsors of the plan feel that preference should
are 16 officers in the Mission, the chief of which is Rear Admira
be
given
l Noble E. anteein
to credits guarIrwin.
g investments tending to the development of
the nation's industry
and agriculture.
Speculation as to whether the action of the Brazilian Government
in
dispensing with the services of the Mission was due to displeas
How Funds Would I3e Used.
ure over
the diplomatic opposition to the recent revolution, was
The project suggests that 10,000.000 pesos of
offset by the terthe amount involved be
mination of the services of the French Military Mission
used during 1931 for irrigation works, includi
.
ng the purchase of land
Previous items regarding the Naval Mission appeared in for distribution among agricultural laborers; 5,000,000 pesos for road
construction, 6.000,000 pesos for the development
of National industry,
thess columns Nov. 15, page 3131 and Nov.22, page 3296.
including an increase in the capital of labor banks
in order to assist cooperative industrial concerns; 2.000,000 pesos
to increase the capital of
agricultural credit banks and 2,000,000 pesos to
increase the number of
Yield from Chilean Nitrate Tax.
rural schools.
Action by the Chamber of Deputies on the morator
Santiago (Chile) Associated Press advices on Dec.3stated:
ium proposal would
affect the agreement signed July 25 last by
Export taxes on nitrates for the first
the Minister of Finance, Luis
eleven months of 1930 totaled Montes de Oca, and the internat
ional committee of hankers on
$18.280,162.
Mexico,
an agreement under which Mexico was to pay
25,000.000 peS08 58 interest
Our Brazilian Mission to Return in Janua
ry—Washington Gets Definite Notice That Work
of Naval
Group Is Over.
The American Naval Mission to Brazil will return
to the
United States late in January, and its contra
ct will not
be renewed, the State Department announced
on Nov. 28
according to Washington advices Nov. 28 to the New
York
"Times," which we quote further as follows:
DEC. 6 1930.]
FINANCIAL CHRONICLE
on her foreign indebtedness for the coming year.
000,000 has already been made thereon.
One payment of $5,-
A further cablegram Dec. 2 from Mexico City to the
"Times" said:
The Budget Committee of the Chamber of Deputies recommended
approval last night of the Finance Minister's proposal to pay 40,000,000
pesos (nearly $20.000,000) on the external and internal debts, including
6,000,000 pesos for pensions.
Approval Considered Certain.
There is every expectation that the Chamber will approve the measure,
which will mean that $12,500,000 will be available for the foreign debt
service in 1931, in accordance with the agreement recently reached in
New York with the international committee of bankers on Mexico for renewal of interest payments to bondholders.
After the signature of that agreement on July 25 by Finance Minister
Luis Montes de Oca and the bankers, this country paid $5.000,000 on
Accordingly, in the
account of next year's obligation of $12,500,000
recommendation made by the budget Committee last night the sum asthe
of
balance
40,000,000 pesos
The
.
is
$7,500,000
bankers
signed to the
recommended by the committee consists of 19,000,000 pesos for Mexico's
Internal debt and 6,000,000 for pensions.
President Ortiz Rubio of Mexico Voted Financial
Dictator—Mexican Congress Gives President Extraordinary Powers Until Next August—Plans to
Combat Slump—Budget Committee of Deputies
Urges Approval of $12,500,000 Quota for Foreign
Debt.
According to a Mexico City cablegram to the New York
'Times" of Dec. 2 the Mexican Congress gave President
Ortiz Rubio extraordinary financial powers the night before,
effective until next August, but limited him to using them
in the employment of public funds to alleviate the financial
and industrial crisis that has been accompanied and aggravated by the depreciation of Mexican silver as against gold
currency and United States exchange. The adviees continued:
3637
City. Furthermore, wages and salaries are paid in silver, and the decline
in silver exchange is equivalent to a reduction in purchasing power. Recently the silver peso reached a discount of 15%, but reacted thereafter
remains
to lower rates. However, the future outlook for silver exchange
uncertain.
Additional Revenues.
e
The Federal budget for 1931, as sent to Congress, calls for an expenditur
pesos over
of 298,000.000 pesos, an increase of approximately 6,000,000
has been
the budget for the current year. A sum of 12,500,000 pesos
has analloted for highways in 1931. The Secretary of the Treasury
increase
an
through
obtained
nounced that the additional revenues will be
in import duties and through increases in taxes on gasoline, tobacco and
alcohol.
The Mexican congress has ratified the President's power to promulgate
changes in the rates of import and export duties, thereby confirming him
of
with the special powers which be offered to renounce early in October
this year.
that
The local management of a large motor company has announced
of a capacity
several million pesos will be spent on a new assembly plant,
The Monof 100 units daily, on which work is to begin in January 1931.
of that
terrey Chamber of Commerce, representing the local industries
district, are inaugurating a "Buy in Mexico" campaign.
Nov. 6
on
d
inaugurate
car
service was
Through Pullman and dining
Nogales.
between Mexico City and Los Angeles, Calif., via El Paso and
and Mexico
An additional railroad connection between the United States
Grande
was effected on Nov. 2 with the opening of the bridge over the Rio
possible
makes
This
connecting Presidio. Tex., and Ojimaga, Mexico.
througn service on the Santa Fe Lines to Chihuahua, Mexico.
The financial and industrial crisis continues to be acute, with merchants
holding down purchases to bare necessities. Gold currency still commands
a premium over silver of about 12%, thus handicapping imports from the
United States. This is being met in part by a rise in retail prices.
Commenting on the above the "Times" stated:
Virtually Financial Dictator.
The granting of extraordinary powers to President Ortiz Rubio by the
Mexican Congress virtually makes him a dictator in the field of Government finance for the period of the authorization. The course was adopted
at the request of the President. The Senate approved it several days ago
and Monday night's action, completing the sanction of Congress, was
taken by the Chamber of Deputies.
Dispatches from Mexico have not clearly indicated the exact extend of the
President's temporary financial dictatorship, but presumably he is now
authorized to make changes in the program of public works as need arises
without taking the time to consult Congress about the details. The Mexican
tariff system already is quite elastic and in recent weeks President Ortiz
Rubio has decreed many higher duties on imported goods, a large proportion of them coming from the United States. Also the export tax on
cattle was removed last month by Presidential decree, evidencing the
power already held by the President.
As one of the great silver-producing countries, with much of its coinage
In that metal, the severe decline in its price, caused partly by the general
of demand in troubled
depression, and more particularly by the slackening
has caused the worldChina and India, where silver is the currency basis,
wide slump in business to be doubly felt in Mexico.
are under consideration in
A number of proposals to meet the situation
Mexico, ranging from direct aid to silver producers, the stimulation of
on irrigation projects,
work
of
up
speeding
sale of articles of silver, the
farms, and new laws,
the establishment of co-operative and collective
protect foreign capital.
Including a moderate labor code, to attract and
Offering of New Issue of $15,000,000 Federal Intermediate
Credit Bank Debentures
The offering of $15,000,000 Federal Intermediate Credit
Bank 3% debentures was announced Dec. 4 by Charles R.
Dunn, Fiscal Agent. The debentures are dated December
15, 1930, and mature in 6, 9, 10, 11 and 12 months. The
6-month maturities are priced to yield 2.75% and the remainder are offered at par. The proceeds are to be used
for refunding purposes. The debentures are secured by
loans and discounts representing advances made for production and marketing of crops and livestock under Act
of Congress, approved March 4, 1925. The entire capital
of the twelve Banks was subscribed for by the United
States Treasury and all twelve banks are liable, under
conditions stated in the Act, for the principal of and interest on the debentures of each bank. Previous recent
offerings of debentures of these Banks were referred to
in these columns Nov. 8, page 2978, and Nov..15, page
3132.
of
Alexander Legge of Federal Farm Board at Meeting
Agricultural Commission of A. B. A. Declares More
Careful Consideration by Bankers of Farm Borrowers' Program Might Have Resulted in More LiquidaPiltion of These Borrowers—Wheat Surpluses
ing Up.
Board,
Alexander Legge, Chairman of the Federal Farm
the Agricultural
addressing at South Bend, Ind., on Dec. 4,
on declared
Commission of the American Bankers' Associati
in
involved
tions
complica
and
problems
the
that "among all
perhaps the
trying to work out a better agricultural program
comes to the
question of how to do the necessary financing
went on
Legge
Mr.
other."
any
as
surface at least as often
are dealing
people
you
where
localities
many
"in
that
say
to
perhaps
with the problem with rather unhappy results is
list. The
Mexican
ent
of
ent
Governm
Agreement for Settlem
just as difficult a question to meet as any on the
loans in a
Debt to British Interests.
bank examiner tells you that you must keep your
many
too
r
altogethe
are
we
there
take
Post"
yet
the
follow- more liquid condition,
From the New York "Evening
shown
has
paper
ral
ed
Press):
agricultu
(Associat
where
24
country
Nov.
the
account
in
London
districts
ing
of the Mexican Government
little disposition to thaw out since th9 big freeze of
The agreement of July 25 for settlement
signed by the Mexican Govern- very
debt to certain British interests has been
Yet somehow the situation must be met. Forced
1920-21.
told a questioner in the
ment, Arthur Henderson, Foreign Secretary,
g
liquidation too often results only in putting the strugglin
House of Commons to-day.
improvean
of
much
making
farmer out of business without
balance sheet." According to Mr. Legge, "a
Mexican Trade Hurt by Decline of Silver Values— ment in your
careful consideration of the borrowMeasures Passed to Meet Increased Federal Budget little more time spent in
s under the private banker
operation
and
plans
program,
es.
ers'
Peso
Diminish
of
as Purchasing Power
resulted in more litigation
have
might
loans
making
is
The heavy discount on silver pesos as against gold has who
the benefit of both the borrower
to
s
borrower
farm
these
of
ns
in
Mexico, and
had a severe effect on sales and collectio
referred to the
and lender." In his address Mr. Legge also
has reduced the purchasing power of wage earners, the "burdensome" wheat surplus, stating that the farmer proDepartment of Commerce has been advised in a cable made
supply, surplus
ducer has "gone on constantly adding to the
public Nov. 29. We quote from the "United States Daily"
100,000,000
under
g
somethin
from
going
over,
or carry
being excesas
of Dec. 1 which likewise said:
to
referred
first
was
it
when
1926,
business is done in silver currency, and bushels in
275,000,000 bushels."
All retail and most wholesale
to
d
amounte
it
1930,
1
July
was
until
t
the
Departmen
sive,
informed.
wages are paid generally in silver,
to the Mexican congress,
added:
The Federal budget for 1931. as submitted
to the cable. He
last year, according
calls for an increase in expenditures over
relief on that commodity at the present time due to
We are getting some
The congress has ratified the power of the Mexican President to change
short corn crop and a scandalously low price on wheat.
a
of
n
combinatio
the
's
The
stated.
Department
statement
import and export duties, it was
on to a point where at existing prices it is profitIn other words it has gone
follows in full text:
the feed lot. While this may afford some temthrough
wheat
able to use
in
Mexican sales and collections are hard hit by the heavy discount on
a solution of the problem. Generally speaking,
not
is
it
relief,
porary
silver pesos as against gold, as all retail and most wholesale business is
coarse grains for feeding purposes can be grown at less
the
localities
most
a
to
cable
in
received
the Departconducted in silver currency, according
the relative feeding value of each.
cost than wheat, based on
ment of Commerce from Commercial Attache George Wythe, Mexico
3638
Mr. Legge, in his address, said:
FINANCIAL CHRONICLE
I VOL. 131.
since that time. Statistical information as issued
by the Department of
It would seem the part of wisdom that a program of conservative assist- Agriculture
has shown the facts, but somehow they don't
get through to
ance,coupled with perhaps a closer study ofand consultation with the
farmer the farmer producer in such a way as to have any effect
on his production
in planning what he is going to do next woule , in most cases, bring
better plan. In this instance they have gone on constantly adding
to the supply.
results, both to the farmer and to his bank creditors. I am wondering surplus, or
whether those of you who are operating in rural districts where the large 1926, when carryover, going from something under 100 million bushels in
it was first referred to as being excessive,
until July 11930. it
part of your business always has been and must be with the farmer
haven't amounted to 275 million bushels. We are getting some
relief on that comin many cases gotten away from the relationship existing between thefarmer modity
at the present time due to the combination of a short
corn crop and
and the banker who is helping finance him as compared with the situation a scandalously
low price on wheat. In other words it has
gone on to a point
50 years ago. In those days the local banker acted as a sort of father where at existing
prices it is profitable to use wheat through
the feed lot.
confessor and consulting engineer and many times be was managing director While this may
afford some temporary relief, it is not a solution
of the probof the farmers' financial operations. The basis of credit in most cases lem. Generally
speaking, in most localities the coarse grains
for feeding
was not so much the actual assets the borrower had but rather the moral purposes can be
grown at less cost than wheat, based on the
relative
risk and the potential possibilities on the part of the borrower to repay.
feeding
value of each.
When the farmer applied to the bank for a loan it seems that it was alWe undertake to point out facts, both domestic and
world
outlook, and
most the universal custom for the banker to take him aside and spend a few we are Immediately assailed
on all sides by some magazine writers
and highminutes,or longer if necessary,in going over his financialsituation somewhat brow economists of one kind
or another who contend that nothing
is ever a
in detail, analyzing just what he had to meet, how he expected to meet it, surplus as long as
it can be disposed of anywhere at any price.
Not having
and when. When the banker, after reviewing the farmer's situation, said had the benefit of any
of this higher education myself. I am not
prepared
to:the would-be borrower, "I don't believe it is safe for you to undertake to pass on the correctness of
this definition. From a practical standpoint
this, the load of obligations you are carrying is altogether too heavy" or it doesn't offer much
comfort to the farmer who is selling the result
of his
the banker felt that the purpose for which the farmer wanted to use the year's labor probably
at not much more than half of what it cost
him to
money was hazardous and from his knowledge of the outlook affecting produce it.
whatever the particular venture might be, usually with better information
Again in cotton, owing to the world-wide depression,
reduced consumpas to the situation than the farmer himself possessed, the decision was not to tion of the commodity
it was clearly evident a year ago that we were in for
proceed, and the farmer usually accepted the judgment of his financial a bad time on cotton
unless we had a sharp curtailment in production
or
advisor and adjusted his program accordingly. In other words, the re- substantial increase in
consuming'demand or both. All these facts
were
lationship of this banker to the agricultural borrower was sort of a combina- pointed out to the cotton
growers of the South, and while in a few sections
tion one. In these highly specialized days we call for the judgment of the a little progress was made,
generally speaking they continued to grow
all
economist, engineer or expert who is supposed to be in better position
to they could and succeeded in producing enough to help bring the price
down
analyze the program than is the fellow who is carrying on the operation.
to around 60% or less of what they were getting for it a
year
ago,
a
basis
Now I may be entirely wrong in the impression that in these latter days of on which many of the States
bitterly complained didn't let them out whole.
high-powered salesmanship, and promotional activities, in which we are
Why is it any of your business? My (Mends unless
there is a better adalways hearing about the killing that somebody made in a promotional justment of production
to potential demand a whole lot of you fellows
scheme, merger or stock-selling program or something of that kind, that are going to pass out
of existence along with the farmers that you
are fiperhaps we have somewhat lost the humdrum, every-day contact with our nancing. If you were not
carrying any farm paper you might escape
by
old customers. A little more time spent in careful consideration of the holding off until after
they have gone broke and a new generation
replaced
borrower's program, plans and operations under the private banker who Is them, but most of you know
this isn't your position. You are already
making loans might have resulted in more liquidation of these farm borrow- involved in their financial problems
to an extent that they will pull you
ers to the benefit of both the borrower and lender.
down with them. Self-preservation should be sufficient
interest, aside.
After all the results in each and every line of business endeavor depend from any obligation to
try to improve the financial position of the
comlargely on the measure ofservice rendered. The main objective of the bank- munity in which you
serve, to suggest vigorous action on your part
to see
ing service in any community should be to care for the needs of that com- that this crime isn't
repeated.
munity. I know full well that many of our bank examiners are advising
It is not the province of us on the Farm Board to
predict what future
their country customers to cut down their percentage offarm loans and keep prices may be, but under a condition
by which we enter the spinning season
more of their deposits invested in more flexible securities, but after all isn't with a surplus of approximately
six and a half million bales of American
this simply begging the question instead of going at the heart of the trouble grown cotton, facing a
reduced consumption which seems likely to add
and dealing with it in such a way that those local loans may become what another million and a half at
the close of the spinning year, it should not be
they used to be and what they should be?
difficult for you to draw your own conclusions as to price
levels a year from
Why should you want to maintain a banking institution at Wheat Cor- now If you proceed to grow
as much of it next year as you did last season.
ners or Cotton Crossing or some other point in the rural districts if such
Now there is no new principle involved in this argument.
Do any of
deposits as you get are to be used in investments far removed from local your other customers,
storekeepers, wholesalers,retailers, or manufacturers
Interests?
that you may finance,continue to buy or produce without
regard to their inPerhaps at one time it may have been possible for you to function merely ventory or
carryover? When the storekeeper finds on his shelves a surplus
as a convenience or checking account depository to the local people, but of any
particular commodity, does he continue to blindly
order more of
in many districts this distress situation has progressed to a point where that; or when
the manufacturer finds a warehouse full of some particular
unless the banks get back of a program to bring about an improvement
in product he is making, does he try to solve his problem
by manufacturing a
the local situation you aren't going to have much deposits to fool with still larger
quantity, knowing that the market will not take what he has
anywhere.
already produced? Certainly he doesn't do that
very
long. Yet that is
imagine
some
of you thinking that you asked me to appear exactly
Now I can
what the farmers are doing in the production of some of the basic
before you to talk about the operations of the Farm Board and that I commodities.
am devoting the time to lecturing you on some of your own shortcomings.
While we are getting earnest co-operation of the extension service,
county
However, that is a hazard that you always take. My contention is that It agents,
agricultural colleges, vocational teachers, organizations and others
Is quite in order to emphasize that part of the problem which in my judg- interested
from a state or national standpoint, there isn't anybody in quite
ment you can best render assistance. Certainly you gentlemen have a as good position
to help us bring about a reasonable adjustment in producmutual interest in trying to see that the unhappy situation now existing in tion schedules
as you are financing the producers. You have an exceedingly
so many of the agricultural districts is corrected. You may not be able to important part
to play in the program and we earnestly solicit your coexert so much influence on some other angle of the problem, but you cer- operation to that end.
tainly have a big field of helpfulness in assisting your farmer customers in
your respective districts to plan their operations to the end that the results
will be more satisfactory.
Proposes Tax on Flour as Subsidy for Wheat.
Right here may I suggest a thought—that it will be only when there is
A bill proposing a direct subsidy of $300,000,000 anbrought about a situation of better planning of agricultural operations that
any permanent improvement in the situation may be expected.
nually for American wheat farmers with a view to stabilPerhaps the greatest handicap to progress at the present time is the fact izing the
price of wheat was introduced in the House by
generally
havobeen led to believe that through some mysterious
thatfarmers
process their Government, or some agency of the Government would cure Representative Conrad G. Selvig (Rep.), Minnesota on
all of their ills without any action or co-operation on their part, a theory Dec. 3, according to Washington advices on
that date to
that is so obviously impossible that it doesn't warrant much discussion or the
New York "Journal of Commerce" which further said:
argument.
The measure provides for the levy of a Federal tax of lc per pound
Congress in passing the Agricultural Marketing Act directed that we
should attack the problem on the basis of bringing about better understand- or $2 a barrel upon all flour milled for consumption in the United States.
Receipts
from this stamp tax, estimated by Representative Selvig to tot41
ing and more collective action on the part of the farm producers. We hear
an awful lot among those who criticize our efforts in this direction that $300,000,000 per year, would be distributed annually by the Secretary of
machinery already developed is efficient in this way or that, but one thing Agriculture among wheat farmers on a pro rata basis in accordance with
that is generally lost sight of is that all this machinery and the rules and their wheat production for the year. It is calculated that on the basis
regulations governing the operation of the exchanges and markets are built of the average wheat yield, the subsidy would amount to more than 35c
up primarily in the interest of those who are operating the machine, not in per bushel. The Minnesota member believes it would give farmers the
equivalent of the 42c tariff on wheat.
the interest of either the producer or the consumer.
This bill," Selvig said, "is submitted for the serious and careful conAs an illustration take grain. The handllng charges are not as a rule
excessive, but from the time a load of grain leaves the farmer's wagon sideration of all who honestly wish to solve the acute problems conthere is no place along the line—country elevator, terminal elevator, miller, fronting the wheat growers of the United States."
banker financing the operation or anybody else that has the slightest interest in whether the price goes up or down except in one place and that is
the floor of the pit, where the speculative trader representing only himself, Senate Agricultural Committee Approves McNary Resoluand here again the question of what the price levels are is not a matter of
tion Proposing $60,000,000 for Loans in Behalf of
grave concern, so long as they are kept fluctuating, affording ample opFarmers in Drought Area.
portunity to make one fellow try to outguess the other as to what the next
fluctuation is going to be. Grain, which may be taken as a fair crossThe Senate Agriculture Committee unanimously apsection of what is being applied to practically every other commodity,
proved
yesterday (Dec. 5) the McNary resolution to
about
arrangement
an
whereby the buyer of the grain
we set out to bring
would not be interested only in playing safe whatever the price level, but authorize $60,000,000 for loans to storm and droughtwhose efforts constantly would be that of getting the best price obtainable. stricken farmers. Associated Press
advices from WashSubstantial progress is being made, and while it is true price levels are
the lowest in many years, it is equally true that the cash prices in recent ington indicating this, added:
The Committee ignored the administration's recommendation for a
months have constantly shown a better basis as compared with the values
established in the futures trading market. In other words, the farmers $25,000,000 limit.
The resolution would authorize loans to farmers not only for feed,
own organization, interested in getting the best possible price for its members, can safely be depended upon to see that the full market value is paid. seed and fertilizer, but also for food for the farmers and their families.'
done,
this
all
is
that full market value will be governed largely
Even after
Chairman McNary announced that he would submit the Committee's
by the available supply as related to potential demand, and here is where report to the Senate Monday and ask for immediate consideration.
None of today's witnesses before the Agriculture Committee advocated
you people as financial advisors to your farmer customers can render a most
efficient service.
the administration's figure.
Senator Black, Democrat of Alabama, said in the Senate committee
In wheat we started piling up a burdensome surplus way back in 1926
and without exception have added to that supply each and every year hearing that there was no agreement among the President's drought
DEC. 6 1930.]
FINANCIAL CHRONICLE
3639
relief advisers on the amount necessary. Maintaining that $100,000,000
Low Wheat Prices Hit Argentina—Kill Hope of Rewas needed, he added that there were twenty-eight Alabama counties
newed Prosperity Based on Big Crop—Federal Aid
which were not designated as drought areas in which aid was needed.
"There are 12,000 destitute families in these counties," he said.
for Farmers Studied—Sugar Planters Appeal.
Senator Stephens, Democrat, of Mississippi, and Barkley, Democrat,
A cablegram as follows from Buenos Aires Nov. 30 is
of Kentucky, also urged speed in providing relief funds.
Mr. Barkley said that $18,000,000 would not be too much for his taken from the New York "Times:"
State alone. He said that he doubted if $60,000,000 was sufficient for
World-wide depression in wheat prices has robbed Argentina of its prosthe country as a whole.
pects for renewed prosperity from the sale of the new crops, which promise
A bill by Representative Aswell for the $60,000,000 loan fund was to be the largest in recent years. The Government is preoccupied over
indorsed before the Committee today by Representatives Whittington of means of providing financial assistance for the farmers to enable them
Mississippi, Patterson of Alabama and Yon of Florida. Democrats, and to harvest their crops, it being admitted the country must have grains,
Representative Sinclair, Republican, of North Dakota.
regardless of the loss of profit to the growers.
The ranking Republican on the committee, Representative Purnell of
Authoritative estimates place last year's unfavorable balance of interIndiana, predicted that the administration bill would be approved.
national payments against Argentina at 700,000,000 pesos (8241,000,000),
A plea for a $60,000,000 appropriation was also made by Democratic with a similar unfavorable balance threatened for this year, unless a large
leader Robinson of Arkansas.
bulk of grains can be moved.
Senator Robinson said if Congress is going to deal with the situation
The farmers already have mortgaged their lands, buildings, machinery.
at all, it should do so generously.
tools and stock to the limit, making it impossible for them to obtain further
bank credit under the agrarian loan law, which requires security in the form
of visible assets. The Bank of the Nation has been authorized to make
to
Finance Burley Tobacco Crop.
New York Banks
special loans for harvesting and thrashing grains, accepting the grain as
The following Lexington, Ky., dispatch Dec. 5 is from security.
There is some talk of resorting to a barter plan similar to the recent
the New York "Sun" of last night.
Canadian pools for the exchange of wheat for French wine.
Railroad expenses have been augmented by constantly increasing wages,
Satisfactory arrangements for financing the tobacco pool of the Burley
Tobacco Growers Cooperative Association for handling the 1930 Kentucky which have risen 168% in 15 years while gross receipts have increased only
burley leaf crop were completed with representatives of a group of 120%•
In less than two years the shares of the Southern Ry. have declined from
New York banks at a meeting of association directors here last evening,
according to an announcement made today by Secretary Frank C. Taylor. 110 to 70, those of the Buenos Aires-Pacific from 105 to 60, and Central
Argentina
and Western shares from 100 to 60.
The crop this year is estimated at approximately three hundred million
This situation is largely a result of the fact that grain exports so far
pounds. At the same time contracts were signed with various warehousing corporations for use of warehouses at thirty receiving points in this year are 5,218,000 tons less than on the same date last year.
Corn exports have totalled 3,756,000 bushels, compared with 5,157,800
the State for handling, redrying, prizing and storing of the pooled leaf.
bushels last week and 2,653,000 bushels for the corresponding week last
year. The total of corn exports to date is 160.648,000 bushels, compared
Argentine Harvest Begins—Many Get Jobs, but at Low Pay with 181,479,000 bushels on the same date last year.
Flaxseed shipments last week were 965,650 bushels, compared with 805.Because of Slump in Cereals.
600 bushels the previous week and 303,575 bushels for the corresponding
According to a cablegram Dec. 4 from Rosario, Argen- week last year. The total of flaxseed shipments this year is 44,078.400
compared with 62,369.000 on the same date last year.
tina, to the New York "Times" the harvesting of wheat bushels,
A commission of sugar growers from Tucuman Province has arrived
and flaxseed has begun in Cordoba and Santa Fe pro- In Buenos Aires to petition the provisional Government for protective
vinces, giving work to a large number of unemployed but measures, including a higher tariff to keep out foreign sugar, arguing that
this year's prices will not cover the cost of cutting the cane and that
at very low wages because of the depressed prices for that
the planters are faced with the necessity of abandoning their plantations.
cereals. The cablegram adds:
Many harvesters are reported to be offering to work for bed and
board.
Rust and other plagues have caused little damage in the Northern
regions of Cordoba and Santa Fe, but the crop will be light in the Central and Southern regions of both provinces. The wheat yield in a large
part of Central and Southern Cordoba is estimated to have been reduced
60 to 70% by the rust and frosts. Areas planted with pedigreed seed
issued by the government experiment stations have not been damaged.
Federal Farm Board Hurts Farmer, Says J. E. Boyle,
Professor of Rural Economy at Cornell University—
Analyzes Marketing Act—Would Return Half-Billion Dollar Fund to United States Treasury.
The tragedy in the present federal effort to provide assistance to agriculture is that in the end the farmers will be
the heaviest losers, according to James E. Boyle, Professor
of Rural Economy, Cornell University says the Chicago
"Journal of Commerce" whose account also said.
Professor Boyle yesterday gave a scientific analysis of the agriculture
marketing act before the convention of the American Association of Creamery
Butter Manufacturers here.
Fundamentally Unsound.
He explained that he favored X farm board, but not the sort provided by
the present act.
"When we come to the operations of the farm board as buyer and seller
in the open market, we are face to face with an activity which is economically and fundamentally unsound and which cannot succeed," he said.
Depresses Prices.
"The farm marketing act is seriously depressing wheat and cotton prices,
and should be immediately amended to restore the free play of market forces
and to take the government out of business.
"The Federal Farm Board, with its funds of $500,000,000 of the taxpayers' money, is working through its own agencies called stabilization corporations, buying and selling wheat and cotton and dealing in futures on
the commodity exchanges, for the avowed purpose of elevating prices and
stabilizing prices.
Has Been Tried Before.
"The board is trying to influence prices by withdrawing the surplus from
the market and withholding it till a later date. This is in reality the
same program already tried so unsuccessfully in British rubber and Brazil
coffee. These two schemes did raise prices at first; but the final economic
effects were three: an increase in the price fluctuations; an increase in the
surplus; and a crashing fall in price. Rubber was pushed from 20 cents
to $1.20 a pound; now it is at 8 cents, the low price of all time.
"Coffee was boosted from 10 cents to 32 cents; it is now at 8 cents a
pound. It is an economic law that artificial price control of farm products in which there is a surplus is practically certain to increase this surplus and result in lower prices. In other words, the remedy is worse than
the disease.
Follow Old Path.
"Wheat and cotton are now having the same fate as rubber and coffee.
When the board pegged cotton last October, it was 18 cents a pound; now
it is 8 cents. When the board pegged wheat last October, it was $1.25'
sow it is 70 cents. On both occasions the board announced that public
money would be put into the market without limit."
"The marketing act should be immediately amended, and the half-billion
dollar fund turned back to the United States treasury. This would also
take the farm board out of the market as banker to the farmer."
Aid in Stabilizing Wheat Prices in Northwest Sought
by Representative Steiwer of Oregon.
The following is from the "United States Daily" of Dec. 11
The aid of the Federal Farm Board to stabilize the price of wheat grown
in the Northwest was sought on Nov. 29 by Senator Steiwer (Rep.), of
Oregon, who conferred with Chairman Alexander Legge and Samuel R.
McKelvie, of the Board.
Senator Steiwer explained that wheat grown in the Northwest is a soft
grain for export, different from the hard wheat grown in the Middle West.
Recent efforts of the Board to stabilize wheat produced in the Middle
West have been helpful, the Senator said, while that grown in the Northwest has not had the benefits of such efforts.
Australia Fixes Initial Payment to Wheat Pools.
Melbourne (Australia) Associated Press advices Dec.3said:
The Commonwealth Bank has fixed the initial payment to voluntary
wheat pools on wheat delivered this season at a florin a bushel (about 48
cents).
Berlin Raises Fodder Barley Duty.
According to Associated Press accounts from Berlin
Dec. 3 the official "Gazette" announced that the import
duty on fodder barley has been raised to 18 marks (about
$4.30) a hundredweight, effective Dec. 4.
Seven Recommendations Proposed by Gov. Roosevelt's
(New York) Committee on Stabilization of Industry
and Prevention of Unemployment.
Seven specific recommendations for furthering the program of unemployment prevention through regularization of
industry were contained in the report of the Committee on
Stabilization of Industry and the Prevention of Unemployment, presented on Nov. 13 to Governor Franklin D. Roosevelt of New York, by the members of the Committee,
Henry Bruere, Chairman; Ernest G. Draper, Maxvnll S.
Wheeler, John Sullivan, Henry H. Stebbins Jr., and Miss
Frances Perkins, Industrial Commissioner, ex officio. The
Albany advices Nov. 13 to the New York "Herald Tribune"
in stating this continued:
The report, the second submitted by the Committee since its formation
last spring, is based on information obtained in a series of conferences with
employers and business men of New York State within recent months and
on extensive investigation of methods being adopted by employers throughout the country to prevent wholesale layoffs during business depression.
In addition to the seven spcific recommendations, the Committee described "several courageous plans"launched by some employers and workers
to protect job holders. Among those mentioned were the Insurance fund
plans of the New York clothing and fuetrades. and the industrial insurance
system of the General Electric Co. State unemployment insurance was declared to be a subject requiring patient, full and fair-minded investigation.
Would Lessen Seasonal Fluctuations,
The Committee's major recommendations are as follows:
(1) A serious and determined effort by business management to lessen
seasonal fluctuations in production and employment through well tested
methods of regularization. assistance to be given by trade associations,
3640
FINANCIAL CHRONICLE
[VOL. 131.
chambers of commerce and the State by supplying information and a
trained staff. It is proposed that the State Department of Labor have one
or more competent production engineers or businets men whose services
could be placed at the disposal of smaller firms wishing to stabilize but lacking a sufficiently specialized managerial staff.
2. All possible steps by management to lessen the temporary unemployment which may be caused by technical and policy changes (dismissal wages
to be paid to those released because ofsuch changes).
3. Increased appropriations for the State employment service and the
fullest efforts to obtain the working co-operation of employers and labor
in all cities where State employment offices exist.
4. Organization in communities of committees to consider local unemployment problems, to promote movements for regulation, improve local
employment offices, help frame public works policies and stimulate community action to relieve distress and suggest remedies.
"1. An estimated sales budget for the year is drawn up in advance
based on past records and the reasonable prospects ahead.
"2. As nearly as possible, this yearly quota is divided into 12 monthly
or 52 weekly parts. Goods are produced in this ratio and surpluses over
current sales are stored to meet the demands of the rush seasons.
"3. The estimated sales quota is checked several times during the year
against actual sales. If the budget proves to be above actual sales, production is diminished. If realized sales exceed the budget quotas production is increased. If the forecasting has been competently done, hewever, the error from purely seasonal causes should not be large, although
cyclical fluctuations will continue to cause trouble. Even when the forecasts go somewhat awry, however, production and employment is in
most cases better stabilized than before the sales budget was adopted.
"Even when a formal budget had not been drawn up, we discovered
many firms which make a practice of manufacturing to stock during the
dull seasons. We have received letters from 36 prominent manufacturers
State Planning Board Urged.
who follow this custom in whose plants informal estimates of probable
5. The setting up of a State planning board to devise long-time programs future sales were made. Doubtless many other concerns in the State,
of public works for State and municipal governments and to accelerate work not brought to our attention, make a practice of manufacturing to stock.
on these programs during periods of business depression.
Regularizing production in this manner involves the necessity for co6. Sharing of slack time among workers during periods of depression ordinating sales plans and production and Utilizing past experiences as a
to the fullest degree possible, rather than dismissing a portion of the em- a guide to future planning. It necessitated tempering optimism with
ployees entirely.
caution. The attempt to regularize production in this fashion becomes,
7. Adoption by industry of insurance plans which will help to st.bilize therefore, a part of the general movement to obtain better management in
the wage earners income during periods of unemployment Full and which every industrial investor and employee looks to management to
impartial investigation of this question by properly constituted National participate.
and State bodies to determine what can be done to supplement efforts
///. Introducing Side Lines and Fillers.
of private industrialists and workers to protect the working people of the
"The historic partnership of coal and ice—an alliance badly damaged
Nation against the effects of unemployment too great to be offset by at present by the illness
of the junior partner—is the classic example of
individual resources.
this method of reducing seasonality. The International Harvester Co.
Four Means of Regularization.
has taken on a varied line to keep its factories busy the year round at
Asserting that the chief types of unemployment are four: Seasonal, the approximate level of its spring peak. The Remington Arms Co.
cyclical, technilogical and chronic, the report discusses in detail the following has experimented similarly to overcome the tendency to concentrate
production in the fall. The Welch Grape Juice Co., by adding jelly
four "chief means of regularization" by industrial firms:
and a fountain syrup to its line of grape juice and grape spread, have been
1. Stimulating consumer and dealer demand during off seasons.
2. Scheduling production so that employment may be fairly distributed able to prolong employment. The Beechnut Co., by packing peanut
butter and other products, has greatly modified the'alternate floods and
through the year despite fluctuations in sales.
drouths which normally characterize most food-packing industries. The
3. Developing side-line and filler products for slack seasons.
4. Using a flexible working day rather than alternately hiring and laying New York Quinine and Chemical Works is also able to produce fairly
steadily during the year because its products have different seasonal peaks.
off workers.
To conclude, however, that all industries can be regulated by such Even in the clothing industry seasonal fluctuations have been coped with
methods would be "to be guilty of false optimism," the report states. Of by some firms. The Dutchess Manufacturing Co. makes up standard
technological unemployment the statement is made that "while ultimately boys' garments when the season is slack for other garments, and the H. A.
the workers displaced by improvements in machinery or in management Dix Co. manufactures nurses' dresses and uniforms during the months
may find work, the intervening period of unemployment is likely to be when its line of house dresses is in little demand.
onerous, and when new work is found it is often at a sacrifice in earnings.
"It is not enough, however, merely to develop side lines in order to
Ways must be found therefore to lighten the burden which society now maintain steady employment. It is also necessary to transfer workers
from the main products to the fillers, and this in many cases requires
compels the workers to bear alone as the price of industrial progress."
additional training. The Michael-Sterns and the Hickey, Freeman Co.,
Cites Plans Already Adopted.
of Rochester, have both developed such flexibility to a very high degree.
"Several courageous plans"launched by employers and workers to protect
It,. Using the Flexible Working Day Instead of the Lay-off.
workers and their dependents against the hardships and uncertainties of
"This method of meeting the seasonal peaks is used by the Delaware &
unemployment are described. The insurance fund plans of the clothing
and fur trades in New York are mentioned, and the industrial insurance Hudson Ry. when the working time is varied between eight and ten hours
a day, according to the demands of business. In this way permanent
system of the General Electric Co. is outlined in detail.
"Such payments," it is stated, "are not doles, nor are they merely pallia- workers put in up to 10 or 12 hours extra a week to handle the fall increase in
tives. In the first place, they extend to labor the same type of financial traffic, and at other times work only 48 hours, and sometimes only 32 hours
protection against depressions and bad years as many well-managed com- a week. This practice is used in one form or another by a number of plants,
panies can now give their stockholders. Such systems will also help to Including many canneries and the National Cloak St Suit Co.,and has much
stabilize industry itself, and through giving workers incomes which they to recommend it. If the total yearly hours are not excessive, it is better
otherwise would not receive, give them increased purchasing power in for a constant number of workers to be employed for a flexible number of
hours per week than for a very fluctuationg number of workers to be emdepression periods."
If management does not bend itself to this task of stabilizing income. it ployed for a constant number of hours per week.
"The plan, has, however,two dangers;(a) ability to work employees overis the conclusion of the report that "it seems inevitable that the State will
time during the rush seasons may discourage employers from trying to iron
by its own initiative seek relief from the evils of unemployment as they
out fluctuations in production and hence lessen the possibility of evening
affect the worker."
the number of man-hours worked and earnings received in the respective
Another Report to Be Made.
months; (b) overtime in some cases may be excessive and cause undue
The subject of State insurance is stated to be one needing "patient, full fatigue. Such a policy will, therefore, be better for a plant with
a 44 or 48and fair-minded investigation" and a "problem that is wider than the hour basic week than for one where the standard week is
already 54 or 60
borders of the State." While aware that "American opinion is by no means hours. It is also desirable that overtime work should not be
carried on for
settled on the wisdom of elaborate systems of unemployment insurance," too long a time.
the opinion is voiced that "the public conscience is not comfortable when
"Many firms believe that such policies as we have mapped out while
good men anxious to work are unable to find employment to support them- socially desirable, would not pay them individually because
of the added
selves and their families."
storage and interest charges which planned production entails. It is the
Descriptions of various stabilization practices and insurances used in common practice of most business men who have not regularized
their emindustry to mitigate the effects of unemployment will be contained in the ployment to use this argument as an excuse for their own inertia. The
firms,
second section of the report, to be issued later.
however, which have regularized production find that such a program has
Report of the discussion of the four "chief means of regularization" brought economies which decidedly outweigh the costs.
follows in part;
"These economies are of four main kinds. The cost of hiring and maintaining large numbers of untrained workers for short periods of time. It
1. Stimulating Consumer and Dealer Demand in the Off-Season.
is costly to hire new workers to meet the peak periods since they are unAt first thought this possible outlet would seem to be diminishing because
work. In consequence in all save unskilled work, the
of the increased practice of band-to-mouth buying. While this is a very accustomed to the
the average have low production and high
real obstacle, some firms have at least in part overcome it. The Inter- newly hired employees will on
national Shoe Co. was in the past able to secure advance orders from its spoilage. A New York manufacturing firm has stated to us that it finds
"new employees" even though they are what is known to the trade as
dealers by guaranteeing that if prices later rose the prices on such deliveries
skilled mechanics are not even 40% efficient for the first six months,
would not, but if the prices fell the dealers would get the benefit of the reAnother manufacturer who has stablized production writes that in his
duction. The American Radiator Co. has stimulated off-season sales by
opinion "it is impossible to produce the goods as fast as they are sold during
quoting winter prices, 5% below those of the late summer and early fall.
the season. If one does it means overtime, high pressure and poor work,
"Some large firms which have a dominant position in their industry
with the consequent loss ofsales by not having the goods ready when wanted,
have changed consumers' habits by advertising. The Hills Brothers Co. and
also having a loss of customers on account of poor work due to high
has extended the holiday demand for its products by pointing out year pressure
and green help. This surely is not good business and such a loss
around possibilities for the use of dates. The Sherwin-Williams Co. has
amounts to more than the loss of interest on money represented by goods
conducted campaigns to stimulate fall and winter painting. The Coca- held
in store.'
Cola Co. has made that drink a year around product by constant adver"By keeping steady work all the year round, costs are reduced by having
tising.
experienced
workers turn out the product. With the stability of jobs
"Small businesses cannot by themselves effect such cnanges in the assured
the only part of labor turnover which remains is that due to the
habits of consumers, but joint effort through trade associations secures
instability of men."
results. This is shown by the campaigns of the allied paint manufacturers to build up fall and winter business and by the successful way
Ohio Plan for Unemployment Relief—Commerce Deflorists have taught us to 'say it with flowers.'
II. Scheduling Production.
"This is by far the most common device which is now being used to
keep employment fairly evenly distributed through the year. Among
the prominent New York companies which are using this method to regularize operations are the Eastern Kodak Co., International Harvester
Co., Auto Strop Razor Co., Procter & Gamble, Ithaca Gun Co., Sterling
Engine Co., Remington-Rand Co., Reming Typewriter Co., Agfa-Ansco
Co., Bausch St Lomb Optical Co., Spencer Lens Co., Neptune Meter Co.,
W.& L. E. Gurley Co., Sheridan Iron Works, Otis Elevator Co., Richardson-Boynton Co., Griffin Manufacturing Co., Oneida Community, Gorham
Silver Co., Kirkman & Sons, Hickey. Freeman Co., S. S. White Co.,
Elite Glove Co., Columbia Mills, Knox Hat Co., Hills Brothers Co. In
nearly all of these cases the following steps have been taken:
partment Report Shows Elaborate Machinery
Created in That State to Deal with Emergency—
Work of County Committees Important Factor.
The comprehensive program inaugurated by Ohio to
alleviate the unemployment situation in that State is revealed in a report made public Dec. 1 by the United States
Department of Commerce. The results accomplished in the
speeding up of public works and the stimulation of private
industry have been such that it is felt that publication of the
methods employed may provide suggestions to authorities
DEC. 6 1930.]
3641
FINANCIAL CHRONICLE
in other States who are striving toward similar ends. The and the proportion on part-time was also over 23 times as
Department's statement relative to the program adopted great in November 1930 as in November 1929. The announcement made by Commissioner Perkins also says:
in Ohio says:
When President Hoover issued his call Last November for co-operation of
State Governments in the unemployment emergency, the Governor of
Ohio as a first step immediately called into conference heeds of all State
Departments, and plans were at once formulated to speed up construction
projects coming under State jurisdiction. At the same time mayors of all
large cities in the State were urged to follow the same course in connection
with municipal projects and to report to the Governor the amount of
work which could be put under contract without delay.
The third, and perhaps the most important step, was the organization
for the different counties for unemployment relief purposes. This was
accomplished by utilizing the services of nine State-wide organizations,
representing industrial management, labor, agriculture and commerce.
Two members ofeach of these organizations were appointed by the Governor
to form a temporary State Committee on Unemployment for the definite
purpose of organizing temporary County Committees. Each of the organizations represented on the State Committee was asked to appoint in each
county some one to serve as a member of a temporary County Committee.
The County Committees having been organized they were asked to assume
responsibility for two things: First, stimulating private industry and enterprises, and second, promoting the speeding up and extension of public works.
The first meetings of the County Committees were attended by representatives of the State Department of Industrial Relations, men thoroughly
familiar with labor conditions in their respective districts. These State
representatives pointed out to the County Committees the various sources
of information available and urged them to give close attention to such construction projects as roads, bridges,sanitary and water improvements,water
and sewer systems and similar enterprises.
Referring to the work of these County Committees, the report declares
that in the opinion of Ohio State officials,these are more effective in mediumsized industrial centers than in either the larger or smaller communities.
In summing up the results accomplished, the report indicate: that the
major efforts of both State and County Committees were devoted to getting
planned projects and improvements started with the least possible delay.
Throughout the State road construction and repairs and building projects
were speeded up to a marked degree.
In the field of private industry, the report shows that through the efforts
of the committees, many employers adopted the policy of "staggering"
employment, allowing each man to work 10 or 15 days during a month.
Thus the whole force was given part-time employment,and many men were
provided with an income, though it was reduced.
In the carrying out of the State program, not only did county and city
authorities co-operate to the fullest extent, but much assistance was given
by trade organizations and newspapers. The latter not only gave considerable space to the various projects in their news columns but likewise emphasized the importance of the program in their editorial pages.
The machinery built up in Ohio as a result of the present emergency
is not going to be scrapped when industrial conditions return to normal,
the Commerce Department report shows. A permanent State committee
for stabilizing employment has been appointed by the Governor and many
of the county committees have signified their willingness to continue to cooperate with the State organization.
In announcing the release of the Ohio report, Commerce
Department officials stated that a limited number of copies
had been set aside for free distribution. These may be obtained on request to the Division of Public Construction,
Department of Commerce, Washington, D. C.
Unemployment had continued 10 weeks or longer for 1,236, or two-thirds,
of the males who were unable to secure work: it had continued 30 weeks or
more for 641, or about one-third of those out of work, and unemployment
had lasted a year or more for 391, or about one-fifth, of those out of work.
In addition to the fact that 165 males per thousand were unable to secure
jobs in November 1930, it was found that 8 per thousand were temporarily
unable to work because of sickness or injury, 15 per thousand were permanently unable to work because of sickness, injury or old age, and 20 per
thousand were unwilling to work being either voluntarily retired or indifferent to work.
Commissioner Perkins expresses "gratification that this
survey, comparable with the one of last year, is available
and hopes that the series may be continued for Buffalo,"
and adds that "the statistical and tabulating services of the
Bureau of Statistics and Information are at the disposal of
other cities willing to undertake such surveys on a similar
basis." Commissioner Perkins also says:
The present widespread interest in stabilization of industry lends par
ticular interest to studies of unemployment, since the development of plans
for regularization of employment will be aided by knowledge as to the
conditions of full-time and of part-time employment.
The following are the statistics mode available by the
Commissioner:
EMPLOYMENT STATUS OF ALL PERSONS ENUMERATED, BY SEX.
Per Cent.
Number.
Employment Status.
Employed, full time
Employed. part time
Two-thirds butlessthan fulltime
One-half but less than two-thirds
One-third but less than one-half
Less than one-third
Not reported
Unemployed
Able and willing to work
Temporarily unable to work
Permanentlyunable to work
Unwilling to work
Not classified
Total
FeBoth
FeBoth
Males. males. Sexes. Males. males. Sexes.
6,930
2,007
856
764
281
109
17
2,350
1,863
94
186
226
1
1,958 8,888
326 2,333
969
113
903
139
308
47
133
24
20
3
431 2,781
391 2,254
18
112
13
179
235
9
1
61.4
17.8
7.6
6.8
2.3
1.0
0.2
20.8
18.5
0.8
1.5
2.0
0.0
72.1
12.0
4.2
5.1
1.7
0.9
0.1
15.9
14.4
0.7
0.5
0.3
63.5
16.6
6.9
6.5
2.2
0.9
0.1
19.9
16.1
0.8
1.3
1.7
11,287
2,715 14,002
100.0
100.0
100.0
DURATION OF UNEMPLOYMENT OF ALL UNEMPLOYED PERSONS.
BY SEX.
(This table does not Include 38 persons-29 males and 9 females-not reporting
as to duration of unemployment.)
Sex of Unemployed and
Duration of Unemployment.
MalesUnder 2 weeks
2 and under 4 weeks
4 and under 10 weeks
10 and under 20 weeks
20 and under 30 week
30 and under 40 weeks
40 and under 52 weeks
52 weeks and over
Tempo- Perrin- Unrarity nently Willing Not
Able
Claud- Total.
to
and Unable Unable
Willing. toWork. tolVork. Work. lied.
79
147
389
331
264
147
103
391
4
13
20
13
15
5
3
20
._
3
8
4
9
3
5
131
3
1
7
5
.-86
165
1
422
-__353
293
..
158
113
731
-
s
Results of Study of Unemployment Conditions in
3
2
Buffalo.
189
Preliminary results of a special study of unemployment in
2,321
1
215
161
93
1,851
Total males
nine areas in Buffalo, N.Y., were announced on Nov.29 by
Females18
__
__
__
2
16
Under 2 weeks
A
Perkins.
like
Frances
study
Commissioner
State Industrial
26
_
__
__
1
25
2 and under 4 weeks
99
__
4
95
weeks
10
under
and
was made a year ago which enables a comparison to be made 104 and under 20 weeks
__--74
1
1
72
__
s
59
in regard to employment conditions at that time and at the 20 and under 30 weeks
29
-_
28
-1
30 and under 40 weeks
1
present. The work was carried on in conjunction with the 40
-15
and under 52 weeks
96
__
9
-11
4
72
over
and
weeks
52
Buffalo Foundation and students of the State Teachers Col422
9
13
__
18
382
Total females
lege at Buffalo and the University of Buffalo co-operated in
Both Sexes__104
3
__
6
95
securing the data by means of a house-to house canvass.
Under 2 weeks
191
1
3
1
14
172
2 and under 4 weeks
The analysis was made and the report prepared under the 4
521
6
24
434
7
and under 10 weeks
427
5
5
14 •
403
weeks
-20
under
10
and
Columbia
of
Croxton
University
E.
Frederick
direction of
357
__
5
9
20
323
20 and under 30 weeks
187
_
3
3
6
175
and Fred C. Croxton of the Department of Industrial 30 and under 40 weeks
129
2
6
118
3
and under 52 weeks
40
827
...
198
142
24
463
Relations of Ohio. The enumeration was made during 52 weeks and over
here
data
The
given
for
the first week of November.
2.743
1
224
174
111
2,233
Tots: both sexes
November 1930 covers 14,002 persons of both sexes. Of
that number 2,781 or 19.9% were unemployed for various
York
reasons, of whom 2,254 or 16.1% were able and willing to What Is Being Done for Unemployment in New
City.
work but were unable to secure jobs. Two thousand three
The following is from the New York "Times" of Nov. 30:
hundred and thirty-three or 16.6% were employed partEmergency Employment Committee, 40 Wall St.-Organized to raise
time and 8,888 or 63.5% had full-time employment. Sumto be used in paying heads of families $5 a day for throe days'
marizing the data for 11,287 males, 18 years of age or over, $6,000,000
work a week in the parks and in non-profit making organizations. The
reveals that
work is supplied by the Emergency Work Bureau, conducted by the Charity
----64
..16
165 per thousand were able and willing to work, but were unable to secure jobs.
178 per thousand were employed part time.
343 per thousand who were able and willing to work were unemployed or
underemployed.
In 1929 the conditions among males, 18 years of age and
over, were
59 per thousand unable to secure work.
67 per thousand employed part time.
126 per thousand unable to secure work or were underemployed.
Comparing tho figures for 1929 and 1930 it appears that
in the areas studied the proportion of males 18 years of age
and over who were unable to secure work was more than 23.
times as great in November 1930 as in November 1929;
Organization Society, Association for Improving the Condition of the Poor,
Jewish Social Service Association, and Catholic Charities.
Mayor's Committee on Unemployment Relief, 346 Broadway.-Obtains
funds from donations by municipal, county, borough and judicial employees and public gifts, relief being distributed weekly to needy persons
canvassed by the police. Gifts are in foodstuffs given out at police stations
and in checks delivered by policemen after investigation.
Salvation Army, 122 West Fourteenth St.-Feeds the hungry in bread
lines and at food stations, affords shelter to the homeless, supplies the
emergency requirements of penniless families and seeks jobs for the workless.
City Free Employment Bureau, 2 Lafayette St.-Seeks jobs for men
and women who crowd into its offices daily.
State Labor Department, 124 East 28th St.-Has three free employment bureaus on the lookout for jobs.
Social Service Exchange, 151 Fifth Ave.-Clearing house for the names
of all applicants to social and welfare agencies, to the police and Mayor's
committee. This organization advises whether such applicants are
..known- to social agencies or whether they have never before applied
3642
FINANCIAL CHRONICLE
[VOL. 131.
for assistance. The replies are transmitted daily to the agencies whence month, the Oct. 31 total—the lowest up to that date—
they emanate.
Board of Education, Park Ave. and 59th St.—Collects funds from having been $2,556,124,087. The Nov. 30 figures include
the teaching and education staffs, feeds hungry children and forwards demand loans of $1,691,494,226 and time loans of 8470,what is left to the Mayor's Committee.
754,776. On Oct. 31 the demand loans were $1,986,639,692
Regular Agencies.—Include the four organizations co-operating with
the Emergency Employment Committee as well as all other agencies which and the time loans $569,484,395. The Nov. 30 figures were
are carrying on their usual unemployment programs,such as the Y.M.C. A. made public as follows on Dec. 2 by the Stock Exchange:
and Y. W. C. A., the settlement houses, men's and women's clubs and
Total net loans by New York Stock Exchange members on collateral,
family and relief agencies.
contracted for and carried in New York as of the close of business Nov. 30
Emergency Bread Lines.—These comprise some 53 bread lines, food 1930, aggregated 62,162,249,002. The detailed tabulation follows;
stations and "handout" agencies of various kinds, some established and
Demand Loans, Time Loans.
others opened for the emergency.
(1) Net borrowings on collateral from New York
Co-ordinating all these agencies:
banks or trust companies
$1,481,380,715 $447,171,354
Welfare Council, 151 Fifth Ave.—Not directly engaged in relief and (2) Net borrowings on collateral from private
bankers, brokers, foreign bank agencies or others
social work, but made up of several hundred affiliated agencies, which
in the City of New York
23,583,422
210,113,511
have formed a co-ordinating committee to unify public and private relief
work.
51,691,494,228 5470,754,776
Combined total of time and demand loans
$2,182,249,002
The scope of the above compilation is exactly the same as in the loan
Wage Cuts Assailed by Frances Perkins—New York report issued by the Exchange a month ago.
,
State Industrial Commissioner Reports New York
The compilation of the Stock Exchange since the issuance
Towns Are Aiding Unemployed.
of the monthly figures by it, beginning in January 1926,
The policy of some industries to cut wages at this time follows:
1926—
Demand Loans.
Time Loans.
Total Loans,
was assailed as "short-sighted" by Miss Frances Perkins, Jan.
30
52,516,960,599
5966.213,555
53,513,174,154
State Industrial Commissioner, in an address at the final Feb. 27
2,494,846,264
1,040,744,057
3,536,590,321
Mar.31
2,033,483.760
968,612,407
3,000,098,167
session of the New York Industrial Safety Congress in Syra- Apr. 30
1,989,889.852
865.848.657
2,835,718,509
5lay 28
1,987,316,403
780.084,111
2,767,400,514
cuse, N. Y., on Dec. 3. The account of this in the New June 30
2,225,453,833
700.844,512
2,928,298,345
July 31
2,282,976,720
714,782,807
2,996,759,527
York "Times" continued:
Aug. 31
2.363,861,382
778,286,886
3,142,148,088
"The industries that cut wages defeat their own ends," she said. "The
purchasing power must be kept up where the wage-earning class will find
it easy to buy the things the manufacturer wants to sell.
"Industry will face a new duty when the upward trend comes. That
duty will be so to stabilize its business that unemployment will be vastly
reduced.
"Insurance may help. I am in favor of giving the reduced premium
to the industry that prevents unemployment.
"Reserves are another type of safeguard. These are money benefits
paid in times of slow trading. For instance, an industry putting 20 men
out of work could say, 'You won't work for 20 weeks, but our mutualbenefit plan makes it possible to pay you just the same.' That procedure
keeps the purchasing power up,"she added.
Urges Cutting of Red Tape.
"This present depression has its world background," she declared.
"We are in a queer situation, with a bankrupt Europe unable to take our
stuff and a tariff preventing Europe from exchanging what it needs in
goods for what we need in goods."
Miss Perkins said there is nothing in the State's records to show that
unemployment is any worse or any better, and she steadfastly refused to
predict for the future.
She believes that further specialization and efficiency in all employment
agencies would help some.
"But you must remember that employment agencies cannot make
work,"she said.
Public improvements, roads and building under construction in times
of depression she characterized as "good doctrine, but the trick is to do
it and cut red tape."
"There is more public building of one sort or another now going on in
New York State than ever before," she said.
Miss Perkins said that recently the State made a canvass of towns of
more than 5,000 population and found that 72 out of the 101 have local committees functioning to pool small jobs, to speed public improvements
and to give relief.
"These methods are palliative, but they are necessary," she said.
Ruling of New york Stock Clearing Corporation on Revocation by Members of Power of Attorney to Employees.
The following ruling of the Stock Clearing Corporation
respecting the revocation of a power of attorney given to
an employee was adopted Nov. 26:
RULE 39.
Revocation of Power of Attorney, Right of Admission to Day Branch, or
Authority to Receive and Deliver Securities.
Any Clearing Member who shall have given a power of attorney to
an employee to perform for said Clearing Member any act connected with
the work of Stock Clearing Corporation shall immediately upon the discharge of such employee or the revocation of such power of attorney give
written notice thereof to Stock Clearing Corporation.
Any Clearing Member who shall have caused a card of admission to
the Day Branch to be issued by Stock Clearing Corporation to an employee shall immediately upon the discharge of such employee or the revocation of the right of such employee to be admitted to the Day Branch
give written notice thereof to Stock Clearing Corporation and promptly
thereafter shall return said card of admission to Stock Clearing Corporation for cancellation.
Any Clearing Member who shall have authorized an employee to receive
and deliver securities through Central Delivery Department shall immediately upon the discharge of such employee or the revocation of the authorization of such employee to so receive and deliver securities give written
notice thereof to Stock Clearing Corporation.
All such powers of attorney, rights of admission to the Day Branch
and authorizations to receive and deliver securities through Central Delivery Department shall remain in full force and effect until Stock Clearing Corporation shall have received written notice of the revocation thereof
or of the discharge of any such employee.
Outstanding Brokers' Loans on New York Stock Exchange Decline to New Low Figure of $2,162,249,002
—Drop of $393,875,085 in Month.
The outstanding brokers' loans on the New York Stock
Exchange dropped to a new low figure on Nov. 30, when the
combined total of time and demand loans of $2,162,249,002
was recorded; a decline of $393,875,085 occurred during the
Sept. 30
Oct. 31
Nov. 30
Dec. 31
2,419,200.724
2,289,430,450
2,329,536,550
2,541,682.885
799.730,286
821,746,475
799,625,125
751.178,370
3,218,937,010
3,111,178,925
3,129,181,676
3,292,860,253
1927—
Jan. 31
Feb. 28
Mar 31
Apr. 30
May 31
June 30
July 30
Aug. 31
Sept. 30
Oct. 31
Nov. 30
Deo. 31
2,328,340,338
2,475,498,129
2,504,687,874
2,541,305,897
2,673,993,079
2,756,988,593
2,764,511,040
2,745,570,788
3,107,674,325
3,023,238,874
3.134,027.002
3 480,779,821
810.448,000
780,961,250
785,093,500
799,903.950
783.875.950
811.998,250
877.184,250
928,320,545
896,953,245
922,898,500
957,809,300
952.127.500
3,138,786,338
3,258,459,379
3,289,781,174
3,341,209,847
3,457,860,020
3,568.966,843
3,641,695,290
3,673,891,333
3,914,627,570
3,948,137,374
4,091,836,303
4.432.907,821
1928—
Jan. 31
Feb. 29
Mar. 31
Apr. 30
May 31
June 30
July 31
Aug. 31
Sept.30
Oct. 31
Nov. 30
Dec. 31
3,392,873,281
3,294,378,854
3,580,425,172
3,738,937,599
4,070,359,031
3,741,632,505
3,787.694,495
4,093,889,293
4,689,551,974
5,115,727,534
5,614,388,360
5,722.258.724
1,027,479,280
1,028,200,260
1,059,749,000
1,168,845,000
1,203,687,250
1,158,718,982
1,089,653,084
957,548,112
824,087,711
763,993,528
777,255,904
717.481.787
4,420.352,514
4,322.578,914
4,640,174,172
4,907,782,599
5,274,048.281
4,898,351,487
4,837,347,579
5,051,437,406
5,513,639,688
6,879,721.062
6,391,844,264
6,439.740,611
1929—
Jan. 31
Feb. 28
Mar. 30
Apr. 30
May 31
June 29
July 31
Aug. 31
Sept.30
Oct. 31
Nov. 30
Dec. 31
6,982,872.411
5,948,149,410
6,209,998,520
8.203,712,115
8,099,920,475
6,444,459,079
8.870,142,684
7,181,977,972
7,831,991.389
5,238,028,979
3,297,293,032
3,376,420,785
752,491.831
730,398,507
594,458.888
571,218.280
565,217,450
628,762,195
803,851,630
719,641,454
717,392,710
870,795,889
719,305,737
613,089,488
6,735.164,241
6,678,545,917
6,804,457.108
6,774,930,395
8,866,137.925
7,071,221,275
7,173,794,294
7,881,819.428
8,549,383,979
6.108,824,868
4,016,598,769
3,989.510,273
1930—
Jan. 31
Feb. 28
Mar. 31
Apr. 30
May 29
June 30
July 31
Aug. 30
Sept. 30
Oct. 31
Nov.30
3,528,246,115
3,710.663,362
4,052,181.339
4,382,919,341
3,968.873,034
2,980.284,038
3,021,363.910
2,912,612,686
2,830,259.339
1.988,639,692
1,691,494,228
458.821,950
467.025.000
604.141,000
700,212.018
780,958,878
747,427,251
668.118.387
686.020.403
651,193,422
869,484,395
470,754,776
3,984.788,065
4,167,588.382
4,856,302.339
5.083,131,359
4,747,831,912
3,727,711.280
3,689,482,297
3,598.633,089
3,481,452.781
2,556,124,087
2,162,249,002
E. A. Pierce & Co. to Take Over Accounts of Failed
Firm of C. Clothier Jones & Co., Philadelphia—
United States District Court Approves Deal, But
Court Hearing Is Still Necessary on Dismissal of
Bankruptcy Proceedings.
On Nov. 26 the United States District Court for the Eastern district of Pennsylvania approved the offer of E. A.
Pierce & Co., 40 Wall Street, this city, members of the New
York Stock Exchange, to take over the accounts of C. Clothier Jones & Co., 1603 Walnut Street, Philadelphia, and
in this way end bankruptcy proceedings which were filed
against the firm on Oct. 27. The Philadelphia "Ledger" of
Nov. 27, from which the above information is obtained,
continuing, said:
The bankruptcy proceedings, however, were not dismissed, as the consent
of the creditors of the Jones company to the Pierce plan was not unanimous,
thus necessitating an open court hearing on the question of dismissal,
which was set for Dec. 15. It seems unlikely, however, that any protests
will be made, as the proposal of the Pierce company contemplates the
payment of the claims of the non-assenting creditors in full in the amount
of their claims as of Oct. 27 last less any debits.
More than 85% of the marginal creditors, representing approximately
79% of all the creditors, consented in writing to the acceptance of the
Pierce plan.
The order for the approval of the transaction was signed by Judge
William H. Kirkpatrick, who appointed the bankruptcy receivers, J. O.
Neff and Frank M. Hardt, Vice-Presidents of the Fidelity-Philadelphia
Trust Co., Oct. 27. It was disclosed for the first time yesterday (Nov. 26)
Dam.6 1930.]
FINANCIAL ClIBONICLE
in the petition which the receivers submitted to Judge Kirkpatrick to
sanction the deal with Pierce & Co. that the members of the Jones firm
had obtained conditional subscriptions of $422,200 to aid in putting the
arrangement through.
A report submitted by accountants showed that the liabilities of the firm
as of Oct. 27 last were $6,153,253, and that the amount of the assenting
claims was $5,009,703.
The receivers are now vested with legal authority to transfer the assets
of the Jones firm to the Pierce firm on the completion of the details of
the plan, but are to withhold sufficient securities and assets to take care
of the rights and claims of the creditors who have not assented to transferring their business from Jones to Pierce.
Two valuable items remain to be disposed of, however, by the Jones
firm, which are important in the completion of the arrangements. One
is the disposal of one and a half seats on the New York Stock Exchange
and one seat on the Philadelphia Stock Exchange, which were carried on
the Jones books at a value of $260,000. The receivers stated in their
petition that these seats had to be disposed of, and Judge Kirkpatrick's
decree gives them the power to sell the seats at a price not less than the
book value, which is below the figures of recent sales on the two exchanges.
The other feature is $210,000 of notes of the Port of Philadelphia Corp.,
secured by $300,000 of the first mortgage bonds of that corporation. The
receivers have an offer from an undisclosed purchaser to take the notes
and collateral at $210,000, and at their request Judge Kirkpatrick empowered them to make the sale at that figure.
Under the offer to Jones's creditors, the Pierce firm agreed to retain in
its employ such of the partners and employees of C. Clothier Jones & Co.
deemed necessary to conduct the business, subject to approval by the New
York Stock Exchange.
3643
Philadelphia Stock Exchange Nov. 13, following the closing
of the firm's doors on Nov. 12 for liquidation, according to
the Philadelphia "Financial Journal" of Nov. 15, which
furthermore said:
The Equitable Investing Corp., a limited partner in the business, tiled
a bill of equity Friday afternoon (Nov. 14), requesting appointment of a
receiver to carry out the liquidation and when such a move was agreed to
by Donald J. Smith, one of the general partners in behalf of the firm,
U. S. District Judge J. W. Thompson, appointed E. L. Austin, receiver
under a bond of $80,000.
In the bill of particulars, filed by the Equitable Corp., the assets are
estimated at $850,000, consisting of cash, bonds, stocks, and equities pledged
with banks, trust companies and brokerage houses, accounts receivable, office
furniture and equipment and equities in real estate. The liabilities are
placed at $550,000 made up of accounts payable, accounts due customers,
funded debt and secured loans.
The receiver is to have absolute and unrestricted control of the business
the
and all creditors and claimants are enjoined by an injunction issued by
firm.
Court from taking any legal proceedings against the assets of the
The offer of E. A. Pierce & Co. to take over certain
accounts of C. Clothier Jones & Co. was referred to in our
Issue of Nov. 22, page 3303.
J. A. Sisto & Co. to Resume Business—United States
District Court Approves Plan of Composition
Offered to Creditors.
Immediately following the approval on Tuesday of this
week, Dec. 2, by Judge Alfred C. Coxe of the United States
District Court for the Southern District of New York of a
plan of composition offered to creditors of the suspended
Stock Exchange firm of J. A. Sisto & Co., announcement
was made that the brokerage house would resume business
at its offices at 68 Wall St. and that the partnership would
remain unchanged. The announcement issued by the firm
Tuesday stated that additional capital has been secured
and the company is looking forward to a continuation of their
regular business at their offices at 68 Wall St. The partners
of the firm will remain the same. The opportunity to resume
business was made possible principally by the confidence of
the firm's customers and banking friends.
The plan of composition calls for the payment of 50%
of the firm's liabilities in cash and 50% in notes of a company
formed for the liquidation of certain assets, which are said
to be sufficient to meet the balance due to general creditors.
The committee which handled the settlement consisted of
Charles A. Frueauff, Chairman; Charles C. Nicholls Jr.
and Richard J. Fitzmaurice.
The New York "Times" of Dec.3in its report of the matter
said in part:
The closing of the firm and its subsequent suspension by
the Philadelphia Stock Exchange was noted in the "Chronicle" of Nov. 15, page 3139.
Branch Banks Sure to Come, According to E. W.
Decker of Northwest Bancorporation—Hits Nationwide Scope—County Systems Probably Adequate,
He Declares.
Branch banking is coming, the only question now being
how far its units will extend, Edward W. Decker, President
of the Northwest Bancorporation, declared in an address
on Nov. 24 before a group of Chicago financial leaders meeting under the auspices of the Bond Men's Club of Chicago
at the Union League Club. This is noted in the Chicago
"Journal of Commerce" of Nov. 25, from which we quote
further as follows:
to whether the firm had
No mention was made in the statement as
the Stock Exchange, but
made application to be reinstated as members of
had asked that its susit was generally assumed in Wall St. that the firm
upon this petition in
pension be lifted and that the Exchange would act
due course.
as a brokerage
business
resuming
in
The action of J. A. Slate & Co.
Stock Exchange for inability
firm after having been suspended from the
by embarrassed Stock
to meet its obligations has been rarely pursued
Suspension for insolvency in
Exchange firms, brokers said yesterday.
of the firm.
dissolution
by
followed
recent years has generally been
with important underwritings
J. A. Sisto & Co.. who had been identified
suspended from the Exchange
In both the United States and Europe. were
violent break in the stock market.
on Sept.30. The announcement caused a
had been caused chiefly
difficulties
firm's
It wasreported at the time that the
Oil CO., which had depreciated
by its sponsorship of the stock of the Cosden
from 135 in 1929 to 8% on Sept. 30.
appointed receiver in bankruptcy
On Oct. 1 the Irving Trust Co. was
on Nov. 5 listed its liabilities
for the firm. Schedules for bankruptcy filed
at $1,455,064, and its assets at $1,746.099, including $815,762 in acccounts
in cash. $280,000 memberships
receivable. Of the assets, $137,670 was
The balance consisted
in various exchanges, and $500,666 in securities.
and of Norris B. Henrotin,
$368,213,
partner,
of assets of J. A. Siam,senior
another partner. $151,190.
Richard Horwitz, Floyd .1. Sisto, Charles
Other partners in the firm are
L. Haveron. J. A. Sisto, head of
J. Sisto, William R. Derby and Francis
one of the best-known young financiers
and
the firm,is of Italian parentage
is credited with having been a
in Wall Street. He is 41 years old. He
frequently visited the Italian dictator.
close friend of Benito Mussolino and
1922.
The firm of J. A. Sisto & Co. was formed in
banking
Considered one of the outstanding proponents of group or chain
the northbecause of his prominence in this development throughout
was a step
west, Mr. Decker indicated that this initial field of organization
toward the branch banking end.
Chain Only Alternative.
With branch banking illegal and unpopular, the chain form of organizaterritory
tion was adopted when it was decided that the bankers of the
take over the problem of providing adequate banking facilities and service
indiand forestall the entry of outside banking interests into the area, he
cated.
utterly
On the matter of scope, Mr. Decker expressed himself as
manageopposed to nation-wide branch banking, contending that local
their
ment, familiar with the problems of the communities it serves and
solution, is essential to sound banking.
support
to
sufficient
be
must
system
On the other hand,the breadth of the
that disaster
a large organization and provide a diversity of resources so
he stated.
to an individual form of activity will not submerge the banks,
County May Be Adequate.
suffice, he said.
It might be discovered that countywide branches would
agriculture,
although in picturing the diverse interests represented by
which his own
through
areas
broad
mining and manufacturing in the
of this larger
banking organization extends, he indicated the advantages
grouping, particularly for sparsely settled areas.
organization,
banking
In speaking of the inadequacies of the present
because of the
Mr. Decker stressed the loose administration of credit
mortality
multitudinous sources for the debtor's accommodation,rather than
of the
among banks. He declared that the land boom in which his section
inmarket
stock
the
and
country suffered so severely a few years back,
judicious
flation of more recent time, could have been prevented by the
administration of credit.
There is no danger of such a monopoly in banking that a man entitled
opinion nine
to credit cannot get it, he declared, pointing out that in his
failures resulted from loose credit where one could be traced to tight credit.
closing
Referring to the Caldwell & Co. situation, which caused the
of a large number of Kentucky, Tennessee and Arkansas banks in the last
business
of
grouping
few weeks, he indicated that the cause here was a
undertakings along with banking and the introduction of promotional
tactics. These he declared would be prohibited by a more stringent regulation of banking, which would itself be facilitated if the banks of the country
were concentrated into fewer units.
In regard to regulations, the opinion was voiced that holding companies
for banks would come under closer scrutiny with the possibility that their
interest be limited to national banks RO that one examining organization
would have jurisdiction over the entire group. Likewise it was stated
reserve
that a provision requiring holding companies to maintain a cash
sufficient to cover the stockholders' double liability was entirely likely
and proper.
Liability in Bank Failures Fixed by Oregon Supreme
Court—Double Charge on Stocks Subscribed for
Prior to 1912 and on Reduced Capital Not Collectible.
The following, by A. A. Schramm, Superintendent of
is from the "United States Daily" of
Our last reference to the affairs of J. A. Sisto & Co. ap- Banks, of Oregon,
Dec. 2:
peared in our Nov. 8 issue, page 2982.
Smith Bros. & Co. (Philadelphia) Failure—Receiver
Appointed—Assets Estimated at $850,000 and
Liabilities at $550,000.
A Federal Court receiver was appointed on Nov. 14 for
the business of Smith Bros. & Co., investment bankers, 116 S.
15th Street, Philadelphia, who were suspended from the
Two decisions by the Supreme Court of the State handed down Nov. 25
are of particular interest to stockholders of State banks. In the case of
Schramm v. Done the Superintendent of Banks is attempting to enforce the
double liability on all of the stockholders of the First Bank of Pilot Rock
which went into liquidation on Oct. 18 1926. This bank was chartered
on Oct. 2 1907 and the attorneys for the Superintendent of Banks contended that due to the fact that subsequent to the enactment of the constitutional amendment by the voters of this State on Nov. 29 1912, the
capital stock was increased, there was a double stock liability enforceable
and collectible on the holders of the stock of the bank. There were three
3644
FINANCIAL CHRONICLE
additional Increases of stock—an increase of $10.000 in 1914. an increase
of $4,000 in 1919 and an increase of 810,000 in 1924.
The Circuit Court of Umatilla County entered a decree fixing the double
liability on all the stock of the bank outstanding at the time it closed. The
decision of the Supreme Court modifies the decree of the lower court "to
exclude therefrom the holders of the original shares of stock subscribed for
pric: to Nov. 29 1912. As to the subscribers to the increase of the capital
stock, the decree of the circuit court will be affirmed." Thus the stockholders of the Pilot Rock bank will be subject to the double liability on
$25,000 of the $40,000 outstanding stock.
The other opinion of the Supreme Court was in the Haberloch case affecting the stockholders of the Tillamook County Bank. This bank was incorporated prior to the enactment of the constitutional amendment but subsequent thereto decreased the capital stock of the bank from $75,000 to
$40,000. The Supreme Court held that "the demurrer was properly sustained and the judgment appealed from must be affirmed." In accordance
with that opinion there is no double stock liability collectible.
Other Liquidations.
These two decisions of the Supreme Court affect the stockholders of 11
liquidations,some of which have been held open awaiting this decision. The
stockholders of the Tillamook County Bank and the Farmers Bank of
Weston would not be subject to the double stock liability provided the
opinion stands because the capital stock of those two banks was decreased.
In the nine other liquidations there wore increases of capital stock and the
amount affected is as follows:
Astoria Savings Bank, $50,000 out of $200,000; Bank of lone, $10,000
out of $25,000: Oregon State Bank, Jefferson, $10,000 out of $25.000:
Bank of Jordan Valley. $30,000 out of $50,000; Citizens State Bank.
Metolius. $6.000 out of $15.000: First Bank of Pilot Rock, $20,000 out of
$40,000; Sheridan State Bank, $6,500 out of $25,000: Bank of Sherwood,
$11.000 out of $25,000.
Of the 133 existing State banks, 47 were incorporated prior to the enactment of the constitutional amendment on Nov. 29 1912, which have either
not changed their capital stock or have made a change prior to the date mentioned. Seven were incorporated prior to the date of the constitutional
amendment and have since decreased their capital stock and their stockholders will be affected by the decision in the Haberlach case. Twentyseven were incorporated prior to the date of the constitutional amendment
which have increased their capital stock and whose stockholders are affected
by the decision in the Done case fixing the double liability on the increased
stock. Fifty-two of the 133 banks were incorporated since Nov. 29 1912
and the entire stock of those banks is therefore subject to the constitutional
amendment fixing the double liability.
Mississippi Banking Law Held Unconstitutional—Issuance of $5,000,000 Bonds to Pay Depositors Rests
on Appeal.
Mississippi's new banking law was declared unconstitutional on Nov. 29 in a ruling by Chancellor T. Price Dale
of Hattiesburg, says a Mendenhall dispatch that day to the
Jackson "News," which also had the following to say:
[vor.. 131.
wanis Club of Port Chester. Emphasizing that sustained
consumption of the millions of articles which we are producing in America and importing from other nations maintains profitable employment, Mr. Leonard opined that the
State of New York could not make a more backward step
than to resort to sales taxes as a source of revenue. He said:
"Even in the greatest of emergencies a system of taxation which places
the burden on those least able to bear it cannot be justified. It did not
work satisfactorily as a war measure. Memory of our experience with
the 'nuisance taxes' of war days should be so fresh in our minds, and the
disastrous effects of such taxes in times like the present should be so
apparent, that the State Commission for the Revision of Taxes should dismiss the very thought of sales taxes.
"Our State government, which is very nobly undertaking to stimulate
employment of labor by rushing construction work even in advance of
prospective appropriations, would put itself In a ridiculous position if it
should levy a tax on purchases made by the laborers to take care of the
appropriations. The element of ability to pay does not enter into the payment of sales taxes. Rich and poor must pay alike. Such a tax is therefore unjust."
Comptroller of Currency Pole Approves Bank Mergers—
Tells House Committee Unions Increase Safety.
Large mergers in banking circles have had a very good
effect and tend to lead to safety, Comptroller of the Currency John W. Pole said in a discussion before the House
Appropriations Committee, says the "Wall Street Journal"
of Dec. 4 in advices from Washington, in which it was
further stated:
In a great many instances, in small towns there has been overbooking,
and every consolidation tends to correct that situation. He made clear
that he did not believe that consolidations and mergers should reach the
point where competition was jeopardized. "It is very desirable that banking competition should be preserved, and that we should avoid monopolies,
but I do not see any danger about that," he said.
The general banking situation has not changed greatly in the last year,
Pole continued.
"The metropolitan bank situation is not any problem, speaking generally, but the country banks are having a rather uphill time in some
instances. The agricultural conditions and the limited possibilities that
they have for making money have restricted their opportunities a good
deal. The city banks are not making as much money as they made last
year, but we have no apprehension on that score."
Extending Time for Realty Liquidation.
The Comptroller's department is taking into consideration current conditions in its examinations of banks, the Ocemtroller said, and is in sane
cases carrying over and extending the time for liquidation of real estate.
Immediate appeal to the Mississippi Supreme Court is planned, for
"The law permits National banks to carry their other real estate owned for
upon its decision on the constitutionality of the Act depends issuance of a period of five years from the date they acquire It; but, of course, if
a $5,000.000 bond issue to take up approximately that amount of guaranty there is absolutely no market for real estate we necessarily have to be
of deposit certificates now held by Mississippians to cover their deposits as lenient along those lines as the law permits. We do not take the posiin failed banks.
tion that the banks must dispose of their real estate unless there is a
Holding as violative of both State and National constitutions the 1930 reasonable market for it."
legislation suspending the Guaranty of Deposits Act and granting certain
On Oct. SI 1930, Mr. Pole said there were 443 banks in receivership
tax exemptions to banks. Chancellor Dale ruled in favor of Wiley P. Magum, as compared with 426 banks on Oct. 31 1929. During this
one-year period
D'Lo, in his test suit against J. S. Love, State Superintendent of Banks.
83 receiverships were closed, 104 banks placed in receivership and of this
The suit, the second prosecuted to determine validity of the legislation, number four were restored
to solvency.
Is expected to be appealed immediately. The City of Jackson, loser in
From January 1 to October 81 1930, there were a total of 764 bank
Hinds County Circuit Court in its attempt to assess taxes against banks suspensions
of which 96 were National banks and 658 State banks, as comunder prior laws, already has taken ItF case to the high tribunal.
pared with a total of 640 suspensions in the entire year 1929 of which 64
Magurn. depositor in the failed D'Lo Guaranty Bank, sought to force were
National and 576 State banks.
Superintendent Love to Issue him a guaranty of deposit certificate under
the old law. He refused a "participating" certificate, given under the
Failure Totaled 96
new plan and payable from an annual fund contributed by banks from
Failures during the ten months period ended Oct. 31 1930 in the
exemptions.
National system totaled 96, as compared with 68 in the entire year of
Conflict Cited.
1929; 70 in 1928; 108 in 1927, and 120 in 1924, the peak period in
Chancellor Dale held that Section 6A and 6B of Chapter 22, laws of the poet ten years. State bank failures in the fiscal year ended June 80
1930, are "unconstitutional and void, being in conflict with Section 16 of 1930 were 588 according to Mr. Pole's figures as compared with 480 in
the State Constitution," and sub section 1 of Section 10, Article 1, of the the previous fiscal year.
Federal Constitution. relating to contracts.
Mr. Pole said there has been a tendency within the last year among
"They impiir the validity of the contract of Mr. Mangum," Chancellor National banks to take out State charters. Within the year ended Oct.
Dale ruled "When the money ($15,000) was deposited in the D'Lo 31 1930 there has been a decrease of about 288
in the number of National
Guaranty Bank a law then was in effect that a certificate would be issued banks, due to consolidations. The decreases occur
when two National
him by the State Banking Department bearing 334% interest," This banks consolidate or when a National bank merges
with a State hank.
certificate, the Chancellor held, was to be paid from a fund which Sections Motives are that
under State charters, banks have broader powers with
6A and 6B sought to repeal. Since the sections seek to repeal such a con- respect to trusts and other features, also the
loan limit may be more
tract, "they therefore are unconstitutional and void," he declared.
liberal.
Bond Issue at Stake.
Holding the sections dealing with exemptions In conflict with previous Representative
McFadden Comments on Bank SituaActs of the Legislature. Chancellor Dale ruled against exemption of
tion—Says "High Pressure" Bond Sales Largely at
bank surpluses to the amount of capital stock. "Section 181 of the ConFault for Failures.
stitution provides that taxation of the banks is made by assessing the shares
of capital stock with the surplus and unpaid dividends," the ruling said.
The following San Francisco account is from the "Wall
"The Legislature undertook to establish value of the shares, less the surplus,
and exempt the surplus up to the amount of capital stock from taxation, Street Journal" of Dec. 2.
which is therefore unconstitutional since it conflicts with the previous Act of
Louis T. McFadden, Chairman of Committee on Banking and Currency
the Legislature."
of the House, and author of the Banking Act bearing his name, here In
Mr. Mangum prosecuted the action as a nominal plaintiff, representing commenting
on banking conditions in the United States said the weakest
more than 100 other depositors similarly affected in the D'Lo failure.
point in our present financial structure is the investment portfolio of the
Earle Floyd of Jackson represented the plaintiff.
country bank.
Ultimate outcome of the two test cases holds the fate of a $5.000,000
Citing examples of the various "high pressure" methods employed by
bond issue approved by the Legislature to care for outstanding guaranty
certain
classes of bond dealers in distributing securities to country bankers,
of deposits certificates.
Mr. McFadden asserted that the numerous failures that recently have
occurred among unit country banks throughout the middle West and
are in large measure due to the unloading of unmarketable, lowJ. Paul Leonard, of Ralph B. Leonard & Co. Declares South
grade bonds on country banks which are not equipped with facilities for
State "Sales Tax" Would Retard Business Recovery.
investment research.
As a means for remedying this condition, Mr. McFadden proposes
Resumption of normal buying is so essential to the recov- that
the present banking laws
to the investment of savings
ery of business prosperity as to make this a most inopportune bank funds be so amended as applicable
to permit banks to purchase shares in
time for the levying of a State tax on consumption—a sales certain types of fixed investment trusts whose portofolios represent wide
diversifications, and whose operations are subject to the ablest investment
tax, declared J. Paul Leonard, member of the firm of Ralph counsel.
Certain high-grade common stocks, especially if purchased through
B. Leonard & Co., in an address delivered before the Ki- the media of the proper types of investment trust, he said, are infinitely
DEC. 6 1930.]
FINANCIAL CHRONICLE
more suitable as investments for bank funds than many foreign and domestic
bond issues which are available for the placement of bank funds.
Representative Sabath Plans to Offer Bill Broadening
Rediscount Powers of Federal Reserve System.
Associated Press advices from Chicago on Nov. 26 stated:
Representative A. J. Sabath of Illinois said to-day he would submit
to Congress a bill to broaden the Federal Reserve System's rediscount
power. The bill would "help relieve the business depression and re-establish business and confidence." he said. The measure would recommend
that the system be authorized to accept for rediscount additional securities,
such as municipal and railroad bonds, and perhaps automobile paper.
Representative Strong Urges Use of Federal Reserve
Funds in Depression.
Use of Federal Reserve Board funds to stabilize prices
In times of depression was urged upon President Hoover by
Representative Strong (Rep., Kans.), says a Washington
account to the "Wall Street Journal" of Nov. 26 which
added:
Strong asked the President to support his bill which would authorize
the board to use its funds to stabilize the purchasing power of money.
The purpose is to let the Federal Reserve Board use its powers to avoid
deflation as far as possible, he said. The bill was introduced at the last
session by Representative Strong, but no action was taken.
Interest Rate Paid by Depositaries on Treasury Balances Reduced from 2 Per Cent to 11
2 Per Cent—Announce/
ment by Treasury Department and New York Federal
Reserve Bank.
The interest rate on daily Treasury funds in special
depositaries has been reduced from 2% to Ph Vo. Announcement of this was made by both Secretary of the
Treasury Mellon and the New York Federal Reserve
Bank; the circular of the Treasury Department, although
bearing date of November 26, was not made available
until November 29, when the local Federal Reserve Bank's
notice was made public. The latter's circular follows:
FEDERAL RESERVE BANK OF NEW YORK
[Circular No. 1011, November 28, 1930
Reference to Treasury Department
Circular No. 92 Revised]
Special Deposits of Public Moneys under the Act of Congress Approved
September 24, 1917, as Amended.
in
created through the purchase of the certificates the banks would be
rate.
a position to purchase the certificates themselves at a lower
Whether or not there would be a saving to the Treasury Department
through the new ruling was regarded as uncertain, since both interest
was
received and interest paid by the department would be reduced. It
on the cerpointed out, however, that the lowering of the interest rate
tificates might have the effect of sending rates downward throughout the
premoney market. It was considered possible that the action will be a
House
lude to a reduction in deposit rates paid by New York Clearing
banks.
President Hoover Transmits to Congress Supplemental
Message on Appropriation of $150,000,000 for
Construction Work in Behalf of Unemployed
—Measures Introduced in Congress.
On Dec. 4, President Hoover sent to Congress a special
message in furtherance of his recommendation for an appropriation of $150,000,000 for an emergency construction
fund asked for in his annual message to Congress (appearing
elsewhere in our issue to-day) to aid in relieving unemployment conditions. Noting that bills were introduced
in the House and Senate immediately to make the plan
effective, a Washington dispatch, Dec. 4 to the New York
"Times" said in part:
Chairman of
The House bill was presented by Representative Wood,
minutes later Senator Jones
the Appropriations Committee, and a few
drawn in almost the exact
offered one in the Senate. Both measures were
was a part of
language of a report by the Bureau of the Budget which
the President's message.
when Chairclerks
bill
the
by
recorded
Hardly had the measures been
ranking minority member of the
man Wood and Representative Byron,
the proposal.
Appropriations Committee, clashed on the House floor over
the Senate.
and Senator McKellar spoke against it in
Says Congress Should Decide.
President should say how
Mr. Byron contended that Congress and not the
McKellar attacked the whole
the money is to be distributed. Senator
an appropriation of 8250.000,plan and offered a substitute calling for
in the United States so as to
000 to be distributed among the 3,057 counties months on post-road work
three
for
men
allow each county to employ 300
at a wage of 83 a day.
in a long speech.
Representative Wood defended Mr. Hoover's proposal
in 1917-18
He recalled that President Wilson had received 8150.000,000
by the World
about
brought
emergency
for use as he saw fit in the national
to Herbert Hoover
War, and another 8100,000,000 in 1919,"which he gave
as Food Administrator."
Wood. "You
Mr.
"Every Democrat voted for those bills," declared
suffering when he was a
voted to give Mr. Hoover 8100,000,000 to relieve
in him now?"
private citizen. You had faith in him then. Have you faith
To designated special depositaries of public moneys and all other banks
and trust companies in the Second Federal Reserve District:
Enclosed will be found a copy of the 1930 Second Supplement to
Treasury Department Circular No. 92 Revised, from which you will
note that the rate of interest to be paid by special depositaries upon
War Loan Deposit accounts has been reduced from 2% per annum to
1',4% per annum, effective December 1, 1930.
Special depositaries should accordingly compute interest on War Loan
Deposit accounts at the rate of 2% per annum to and including November 30, 1930, and at the rate of 154% per annum beginning December 1,
1930, until further advised to the contrary.
This information will also be of interest in connection with the new
Treasury offering which may be expected shortly.
GEORGE L. HARRISON, Governor,
The Treasury Department's circular reads as follows:
Special Deposits of Public Moneys Under the Act of Congress Approved
September 24, 1917, as Amended.
[1930—Second Supplement to Department Circular No. 92 Revised.
Division of Deposits.]
TREASURY DEPARTMENT
Office of the Secretary.
Washington, November 26, 1930.
and trust companies incorTo Federal Reserve Banks and other banks
porated under the laws of the United States or of any State:
Effective as of December 1, 1930, Treasury Department Circular
No. 92, dated October 1, 1928, is hereby amended by changing the
paragraph under the caption "Interest on Deposits," to read as follows:
"Until further notice, each depositary will be required to pay interest
at the rate of Iy_,% per annum on daily1, balances."
1930, the rate of interest to
Accordingly, on and after December
be paid on daily balances in the "War Loan Deposit Accounts" by
instead of 2% per annum
annum,
per
special depositaries will be 155%
as heretofore.
A. W. MELLON, Secretary of the Treasury.
With regard to the lowering of the interest rate the
New York "Journal of Commerce" of Dec. 1 said:
Treasury deposits are created through the purchase of Treasury certificates by the banks, the banks making payment by giving the Treasury
15 sale of certificates $21,000,000
a book credit. From the September
now remains on deposit for the account of the Treasury. The entire
amount has been called for repayment on Wednesday and on the fifteenth
of the month, when new certificates are issued, new deposits will be created as is usual during the quarterly tax and Treasury financing period.
It is expected that as a result of the reduction of the interest rate to
be paid on these deposits a lower rate on the forthcoming Treasury certificates will be announced. The statement Saturday by the Federal Reserve Bank of New York announcing the reduction declared in this connection: "This information will also be of interest in connection with the
new Treasury offering which may be expected shortly."
The coupon borne by the September 15 issue of certificates was 29%.
Banks purchasing the certificates bearing this rate credited the Treasury
according to the amount purchased and paid 2% on the deposits. Against
these deposits no reserve is required and income from the certificates
is tax exempt. With the lowering of the interest charges on the deposits
3645
Hearings Will Begin To-day.
Appropriations
Hearings on the Wood bill will be begun by the House
measure to
Committee to-morrow morning with the hope of getting the
while opposed to
the floor and acted upon before Christmas. Mr. Byrns,
as to be used at the
the principle of providing the money in such a way
perfected in comdiscretion of the President, said he hoped to see the bill
when it reaches
mittee, and indicated that he might be found supporting it
the floor.
an outright appropriaAs introduced to-day, the measure provides for
in such amounts as
tion of $150,000,000 "to be allocated by the President
the several executive
to
requires,
he may determine the public interest
with the prosecution
departments and independent establishments charged
ofsuch enterprises."
The President's message follows:
THE WHITE HOUSE,
Washington, Dec. 4 1930.
The Speaker of the House of Representatives,
SR:
for the consideration of ConI have the honor to transmit herewith
year 1931, amounting
gress an estimate of appropriation for the fiscal
fund to enable the Chief
to 8150,000,000. for an emergency construction
already authorized
projects
construction
on
Executive to accelerate work
by law so as to increase employment.
that an appropriation
In my annual message to the Congress. I requested
this purpose, and this
from $100,000,000 to 8150,000,000 be granted for
in that message, the
stated
I
As
request.
that
of
estimate is in furtherance
Congress not
application of this money to work already authorized by the
Congress but assures
only limits its application to work already directed by
already been
has
its use in directions, the economic importance of which
determined by Congress.
projects
This plan also voids the long delays incident to selection of new
preparation which new
by Congress and the further long delays in technical
no purof
action
projects would require, both of which would render such
pose in emergency relief of unemployment.
of the moneys between
I suggested in my message that the allocation
upon recommendation
the different authorized projects should be made
should comprise the Secof a committee of the Cabinet. Such a committee
Agriculture, and may
and
Commerce,
retaries of the Treasury, War, Navy,
or appointed by me.
be established in the terms of the appropriation
wages between
The test of the value of such relief is the ability to pay
that this estimate
now and the end of the fiscal year, and I therefore urge
be given early consideration.
in the letter of the DiThe details concerning this estimate are set forth
rector of the Bureau of the Budget, transmitted herewith.
Respectfully,
HERBERT HOOVER,
Estimate of Appropriation.
Budget Director Roop's letter to the President is given as
follows in the "Times":
Dec. 4 1930.
Sir:
By your direction, I have the honor to submit herewith a supplemental
estimate of appropriation for the fiscal year 1931 for the purpose of accelerating during the remainder of the current fiscal .year such work on authorized governmental construction projects as will increase employment
during the present emergency as follows:
Emergency construction fund, $150,000.000.
3646
FINANCIAL CHRONICLE
[Von. 131.
In response to your request, I have canvassed the departments with a
view to ascertaining how much money could be spent during the next six would appear to assure the enactment of measures which
months with a view to aiding the unemployment situation, if additional include unemployment bills, additional appropriations for
funds could be provided.
public buildings and roads, and relief for farm regions
This canvass has been conducted with the limitations which you indicated kept clearly ih mind, namely, (1) items which would require addi- which are suffering acutely on account of the prolonged
tional Congressional authorization have been eliminated; (2) items which drought. The dispatch further said:
do not afford direct benefit to the employment situation within the next
The agreement is also understood to have included an expression of
six months have been eliminated; (3) only such items have been included willingness on Senator Robinson's part to discountenance
filibustering
as are believed to be justified On their merits and for which money would among his party following, but there was said to
have been no commitbe provided within the next few years as government finances would per- ment by him to hold back Democratic legislative
measures obnoxious
mit, and (4) while some of these projects cannot be fully completed within to the administration or otherwise assuage the fears
of the administration
the next six months and will necessarily involve some additional future that an extra session of the next Congress may
be necessary to enact
expenditure to complete them, the emphasis has been laid in every case legislation essential for the support of the Government.
on the relief which would be afforded to the unemployment situation
With the convening of Congress on December 1 brief
during the next six months, and projects which would involve materially
larger expenditures in the future to complete them have been eliminated, sessions only were held in the Senate and
House. Noting
except in those cases where the commencement of the project is contemthis the United States Daily of Dec. 2 stated:
plated in the 1932 estimates now before Congress.
The Senate adjourned 20 minutes after the Vice President's gavel
Will Make Further Reports.
had called it to order and during which it received the credentials of,
In view of the necessary technical work in the preparation of plans and and administered the prescribed oath to, six Senators who were chosen
estimates, the acquisition of sites, &c., it is impossible at this time to make at the last general election and had adopted resolutions providing for
an absolute determination of all the projects upon which money can be notification of the President and the House that the Senate was ready
effectively and efficiently spent for the purpose of aiding employment for work. The first roll call of Senate showed 88 members present.
within the next six months. I am still conducting hearings on these proThe first day of the session in the House was longer than that of the
posals of the departments in order to be in a position to recommend to Senate, more time being required for the roll call and the administrayou from time to time the projects to which I believe money should be tion of oaths to new members. There were 353 members present in the
allocated if an appropriation for this purpose is provided.
House, and 13 more were sworn in.
For your information, I append a list by departments and bureaus of
In the Senate the oath was administered to Daniel 0. Hastings (Rep.),
the amounts which it is believed could effectively be spent during the next of Delaware; Robert J. Bulkley (Dem.), of Ohio; George McGill (Dem.),
six months for aid to the employmentsituation.
of Kansas; W. E. Brock (Dem.), of Tennessee; Robert B. Carey (Dem.),
By far the greater part of these projects are not provided for in the of Wyoming; and Ben Williams (Dem), of Kentucky.
estimates of appropriations for the fiscal year 1932 transmitted in the budTwo other Senators-elect, James J. Davis (Rep.), of Pennsylvania,
get, but there are some items in the list which have been so included in and Dwight W. Morrow (Rep.), of New
Jersey, were not present. Mr.
the 1932 budget.
Davis will not present his credentials until the special Senate ComIt is my understanding that should it be practicable and advisable mittee Investigating Campaign Fund Expenditures
completes a new into allocate part of the emergency appropriation to these items, any money quiry, according to an oral statement by
the Chairman, Senator Nye
appropriated in the 1932 appropriation Acts for the same purpose could (Rep.), of North Dakota. Mr. Nye said he
had
received additional
be impounded by the Department concerned under instructions from reports concerning
campaign expenditures and had dispatched investiyou unless required for the continuation of the same project.
gators to study them. There was no announcement concerning Mr.
It is pertinent to mention a fact which has been repeatedly developed Morrow.
in the course of the hearings upon these items, namely, that the amount
House Routine
of benefit to the employment situation during the next six months is not
The House business was entirely routine, save for a two-minute speech
fully reflected in the amount of money expended by the Government during
that period, as on contracting work where there is a lag of from one to by Representative Aswell (Dem.), of Natchitoches, La., announcing his intwo months or more between the actual expectation of the work and the troduction of a measure to provide for a $60,000,000 loan to droughtFederal payment for it. This is particularly true with regard to the stricken farmers.
Federal aid highway construction, where the lag frequently exceeds three
The Speaker, Representative Longworth (Rep.), of Cincinnati, Ohio,
months.
called the body to order at noon.
In other words, the contractor is paying the Wages of the workmen
Most of the eight women members of the House were on the floor.
and buying material for a particular job a month or two before money They are: Representatives McCormick (Rep.), of Chicago, Ill.; Rogers
is paid out of the Federal Treasury to reimburse him.
(Rep.), of Lowell, Mass.; Pratt (Rep.), of New York City; Owen
This supplemental estimate of appropriation is required to meet an (Dem.), of Miami, Fla.; Norton (Dem.), of Jersey City,
N. J.• Langley
emergency which has arisen since the transmission of the budget for the (Rep.), of Pikeville, Ky.; Oldfield (Dem.), of
Batesville, Ark.; Wing.
fiscal year 1931.
(Dem.), of De Queen, Ark.
Very respectfully,
New Members Inducted
J. CLAWSON ROOP,
Director of the Bureau of the Budget.
Thirteen new members were sworn into office. They are: RepresentaThe President.
tives Mrs. Effiegene Wingo (Dem.), De Queen, Ark.; E. W. Goss (Rep.),
The White House.
of Waterbury, Conn.; Burnett M. Chiperfield (Rep.), of Canton, Ill.;
Claude V. Parsons (Dem.), Golconda, Ill.; John L. Dorsey, Jr. (Dem.),
Department of Agriculture.
Department.
Navy
Office of the Secretary
$83,480 Bureau of Yards and Docks,
of Henderson, Ky.; Frank Hancock (Dem.), of Oxford, N. C.; Hinton
Animal Industry
57,995 Public Works
$4,620,000 James (Dem.), Laurinburg, N. C.; Edmund F. Erk
(Rep.), Pittsburgh,
Biological Survey
489,505
Pa.; Robert F. Rich (Rep.), Woolrich, Pa.; Francis B. Condon (Dem.),
Dairy Industry
114,000
Treasury Department.
Forest Service
Central
Falls,
R.
3,540,000 Coast Guard
I.;
Frederick C. Loofbourow (Rep.), Salt Lake City,
8170,000
Plant Quarantine & Control
35,000
Utah; Robert L. Hogg (Rep.), of Point Pleasant, W. Va.; and Michael
Weather Bureau
5.000
K. Reilly (Dem.), of Fond Du Lac, Wis.
IVar Department.
Federal Aid Highway System 80.000,000
Military Activities—
The Speaker announced the resignation of Representative David H.
$9,894,500 Kincheloe (Dem.),
Total
$84,324,980 Quartermaster Corps
of Madisonville, Ky., who is already in office as an
3,181,000
Seacoast Defenses
Department of Commerce.
Associate
Justice of the United States Customs Court. It was accepted.
393,000
Signal Corps
Air Navigation Facilities
$325,000 Air Corps
4,751.000
resignation
The
had
already been submitted to the Governor of Kentucky.
Public Works, Aid to Navi0,902,000
Ordnance Department
gation
538,000 Chemical Warfare Service
1,447,000
On Tuesday, Dec. 2, President Hoover's Annual mesRepair of vessels, Coast
1,465,000
U. S. Military Academy
Survey
70,000 National Guard
2,012.000 sage was read in both branches in Congress, and this is
Construction of Stations,
Reserve
Officers'
Training
Bureau of Fisheries
150,000 Corps
672,000 given on another page in the earlier part of this issue
Total
$1,083,000 Total military activities— $30,527,500
Department of Interior.
Non-MilUary Activities—
Bureau of Indian Affairs
$1,266,300
$1,083,000 Quartermaster Corps
National Park Service
1,650,000 Corps of Engineers
25,500,000
Office of Education
250,000
St. Elizabeth's Hospital__ _
495 coo Total non-military achyHoward University
22
Wes
$26,766,300
UOU
Freedmen's Hospital
30,000
Grand total, War Dept_ $57.293,800
Total
$3,757,000
Department of Justice.
Recapitulation.
United States Reformatory
Department of Agriculture. $84,324,980
(to be located west of
Department of Commerce__ 1,083,000
Mississippi River)
$100,000 Department of the Interior_ 3,757,000
National Training Schoolfor
Department of Justice
355,000
Boys, Washington, D. C.
155,000 Navy Department
4,620,000
Hospital for Defective DeTreasury Department
170,000
linquents
100,000 WaSDepartment
57,293,800
Total
$355,000 I Total
$151,603,780
as showing the measures on employment relief and economic recovery introduced in the Senate and House on Dec.
2 we quote the following from the New York "Times":
By Senator Glenn—A resolution to carry out President Hoover's recommendation for an emergency fund of $150,000,000 to accelerate public
works.
By Senators Robinson of Arkansas, McNary and Caraway—Resolutions to provide $60,000,000 to aid drought-stricken farmers.
By Senator Plains—Bill for creating a Federal industrial commission
to study the stabilization of employment.
By Senator Capper—Resolution to distribute 40,000,000 bushels of the
Farm Board's wheat surplus to relief organizations for food.
By Senator Brookhart—Bill increasing appropriations for public roads
from $125,000,000 to $500,000,000 for two years.
By Senator Keyes and Representative Elliott—Twin bills to expedite
work on Federal buildings.
By Senator Reed—Bill to suspend immigration for two years from all
countries on this hemisphere and from Europe.
By Representative Cable—Bill to exclude all immigration of laborers
until the Secretary of Labor decides they are needed.
By Senator Oddie--Bill to embargo the importation of all products
from Soviet Russia.
By Representative Suddleston—Bill to appropriate $50,000,000 to be
used by the President as a "destitution fund."
Opening of Third Session of Seventy-first Congress—Conference Between Senator Robinson and President
Hoover Looking Toward Speedy Action on Relief Bills.
The third and final session of the Seventy-first Congress
opened on Monday, December 1. It was stated in a New
Regarding the proceedings in the Senate on December
York "Times" dispatch from Washington Nov. 30 that at
a White House Conference on Saturday afternoon, Nov. 2 the United States Daily said in part:
Credentials of James
Davis as Senator-elect from Pennsylvania were
29, between President Hoover and Senator Robinson of presented, and objection J.
immediately was entered by Senator Nye (Rep.),
of
North
Arkansas, the Democratic floor leader, the path for harDakota.
Senator Nye read a report of the Special Senate Committee on Cammonious co-operation of Republicans and Democrats to- paign
Expenditures, of which he is Chairman, in which he asserted the
ward overcoming business depression and unemployment belief that expenditures in behalf of the Davis-Brown ticket in Pennsylwas partly cleared by the arrangement of a working vania were in excess of $600,000.
Senator Reed (Rep.), of Pennsylvania, declared no reason existed for
agreement. The conferees, it was said found that they delay
in administering the oath to Mr. Davis. Senator Nye submitted a
could agree on a program of legislative procedure that resolution which provided that the question of Mr. Davis' right to a seat
Dec. 61930.]
FINANCIAL CHRONICLE
in the Senate be referred to the Special Senate Committee on Campaign
Expenditures, asking a record vote. The resolution was not agreed to,
the vote being 27 ayes and 58 noes.
Mr. Davis was then sworn in.
Mr. Davis it will be recalled was formerly Secretary
of Labor. The House was in session for little more than
an hour on December 2. In his annual message, as we
note in our item thereon, President Hoover made known
his intention at a later date to "lay before the Senate the
protocols covering the Statutes of the World Court which
have been revised to accord with the sense of previous
Senate revisions."
3647
efforts in the past by other Governments have resulted in failures. We
know, however, in face of Governmental efforts in the way of regulation by
Washington and market efforts by the Farm Board, compared with the
July 1929 average, that there has been a shrinkage which reads for a total
of 14,438,000 500-pound bale crop, such as estimated by the Government
for the current year, of something like $614,000,000.
"This is about the face of the figures as they now read, but it does
not by any means follow that they will hold with an improvement that is
hoped for, and, it is believed, may follow for the rest of the season; u
the millS of the world must have cotton, and there is a growing determination not to part with holdings unless at better prices.
"The instant need, however, is the instillation of confidence which can
beet be secured by removal of obstacles which have in a manner assisted
In bringing about existing conditions. Naturally, individual speculators
are averse to competing with the Government, and what with the constant
Interference by Congress and the operations of the Farm Board, the life
of speculation and investment has been more or less stifled.
Decision Affecting Income Tax Incident to Inventory
of Securities by Banks in Case of No Sale.
Ask "Hands Off" Policy.
"Private initiative, which successfully handled the monster crops of
Banks may inventory their securities and take a tax loss 1926 and 1926, and even far more difficult situations, can do the same
relief by
without sale, under a very important decision recently with the present situation, provided the Government affords'hands
oil',
of the Farm Relief measure or some assurance of
handed down by the United States Circuit Court of Appeals, amendment
The methods of co-operation do not enter into the matter. The farmer
according to J. S. Seidman, tax expert of Seidman & Seid- filould always be entitled to dispose of his produce through co-operative
organizations or merchants as he may desire; both are trade methods open
man, certified public acouutants. Mr. Seidman says:
business, but Government interference
This decision is a signal victory for the banks, as the Government's to fair legitimate competition for
men who furnish
position has been all along that unless banks were active dealers in securi- and the use of Government funds against the business
and must
ties they could not inventorY securities at hand at the end of the year, such funds through taxation are unnatural and uneconomical
and that losses could be claimed only as the result of actual sales trans- certainly fall of their own weight, though not without inflicting serious
are
measures
such
whom
for
those
actions. The Harriman National Bank challenged the Government's injury to all and sundry, including
position. Before the Board of Tax Appeals the bank lost out. On appeal claimed to have been enacted."
The report also calls attention to the overwhelming vote in favor of a
to the Court, however, the Board's decision was reversed.
"It is of especial significance," Mr. Seidman added, "that as cases come continuance of "Commodity Exchange Trading" by the Chamber of Comand go, the facts in the Harriman case were not particularly favorable to merce of the United States, which was 2,687 for support of exchange tradthe bank. Its ratio of sales to securities on hand or purchased during the ing as compared with 111 against such support.
year was low, the turnover of securities was slow and no separate accounts
for profit or loss from the sale of securities was kept. The Court nevertheWater Traffic Growing.
less held that the bank was a dealer insecurities, and, as such, was entitled
in waterway and truck transportation of cotton
increase
large
recent
The
to report its income on the basis of inventories.
follows:
"Considering the decline in security values during 1930, the decision will to New Orleans is commented on as
"More than 23%% of the receipts were by water, which totaled 468,226
be of tremendous help to banks in that it will enable them to take tax losses
of 148,955. Of this the Warrior
gain
a
year,
last
bales against 314,271
without having first to sell securities."
Barge Line brought us 431,186 bales against 304,160 same time last season.
In addition to water competition, handlings by automobile trucks, though
yet of moderate proportions, are gradually developing, about 20,000
New Orleans Cotton Exchange Launches Attack on as
bales having been received by that means within the past two or more
'
Federal Farm Board—Directors Report Criticizes months. In brief, water and truck services are developing from rate
rail transportation with promise of
Government for Entering Business—Decline of regulators into active competitors with port
within the near future."
important gains in the business of the
$614,000,000 in Crop Value Cited in Complaint.
Membership in the Exchange, the report states, decreased during the
two were expelled, leaving
A direct attack on the Government for going into business year by 13, "of which four were from death and
a net loss of seven by resignation, and this was offset by seven additional
in competition with private citizens through the efforts of applications pending and carried over for election after the date of the
the Federal Farm Board in the cotton market is contained report."
The affairs of the Exchange, it is stated, are turned over to the Board's
In the annual report of the Board of Directors of the New
successors "in excellent condition."
Orleans Cotton Exchange, issued Nov. 28. The report is
signed by J. P. Henican, President, and Colonel H. G. Hester,
Secretary. The New Orleans "Times-Democrat," from which Inter-State Commerce Commission Orders Sale by Bids
we quote, went on to say:
of Rail Bond Issue—Requires Indianapolis Line to
The report calls upon the Government to "afford relief by amendment
Revoke Agreement With Trust Company—Market
of the Farm Relief measure or some assurance of 'hands off'."
Rise Considered.
The report points out that during the period of the operations of the
Government in cotton the price continued to decline until it reached its
lowest point in October 1930, "a sheer decline from July 1929 of nearly
$42.50 for a 600-pound bale." The decline, the report recites, amounted
to "something like $614,000,000 for a 14-438,000-bale crop, the present
estimated growth for 1930.
Policy Injures AU.
"Government interference and use of Government funds against business
men who furnish such funds through taxation are unnatural and uneconomical and must certainly fall of their own weight, though not without
inflicting serious injury to all and sundry, including those for whom such
measures are claimed to have been enacted," the report declares.
That portion of the Directors' report dealing with governmental efforts,
in full, is as follows:
"The year just past has been one of the most remarkable on record.
It started with an unprecedented rush of cotton to market until by the
close of October nearly seven and a half millions of bales had been shipped
from plantations, largely exceeding all previous totals for the same period.
Meanwhile the demand for American cotton abroad had lapsed in favor of
cheaper foreign growths and consumption by domestic mills, which had run
ahead of last year handsomely up to the close of October, seriously decreased
from month to month during the remainder of the season. The result
was that the average July value of middling %-inch staple indicated a
decline compared with the July 1929 average of 6.08c. a pound, or say,
more than $30 a bale.
Prices Drop.
"Under a mistaken impression that values were unfavorably influenced
by over-speculation when in fact the market was suffering from absence
of speculative confidence, the United States Senate appointed a committee
of investigation. The committee met in December but, needless to say,
It exerted no influence. This was followed later on by the operations of
the Government Farm Board, which, in its attempt to check the downward course of values entered into a huge speculation, taking, it is stated,
upwards of a million and a quarter of bales to be held off the market until
such time as it may be deemed proper to sell.
"Whatever may have been the temporary effect of this move, the fact
remains that the Farm Board was helpless to stem the decline in values
which not only reached their lowest point for the season in July 1930, but
continued to drop with the advent of the new crop year, until the October
1980 average for middling %-inch, was 9.82c. a pound, a sheer decline
from the July 1929 values of nearly $42.60 for a 500-pound bale.
"As stated by Secretary Hefner, columns upon columns have appeared
in the public prints and elsewhere, seriously criticizing the United States
Government for going into business in competition with its private citizens. The final outcome, of course, remains to he seen, though similar
Declaring that it would not close its eyes to prevailing
market conditions in authorizing bond issues by railroads,
the Inter-State Commerce Commission on Nov. 26 ordered
opened for competitive bids a $1,000,000 issue of 44% gold
mortgage bonds, authority for which was granted to the
Indianapolis Union Ry. Co. A Washington dispatch to the
New York "Times" reporting this further said:
If carried out by the railroad, the order will be the first of its kind on
record. A similar order was made by the Commission in 1924, but was
rescinded. In authorizing the marketing of railroad securities, the Commission as a rule accepts the agreement between the applicant and purchasing company, competitive bids being required only for equipment trust
certificates.
The Indianapolis company's bond issue is to reimburse its treasury for
Improvement expenditures, but the Commission took the position that since
the bonds were to be guaranteed by the Pennsylvania and the New York
Central, which indirectly control the lines, they had an added value and
could be marketed as easily as equipment trust certificates.
Subject to approval by the Commission, the Indianapolis Union, on
July 17, entered into an agreement with the Union Trust Co. of Pittsburgh
for the sale of the complete issue at 97h% of par. Due to delays in deciding
upon the terms, application for the Commission's authority was not made
until Oct. 1, and it was on the basis of this delay that the Commission
formed its decision.
It held that during the interim between the agreement and the filing of
the application, the market for rail bonds had been strengthened considerably with an increase of at least two points on the value of the proposed
Issue.
The railroad urged that if a price of 973i was reasonable at the time
of the agreement, it should be authorized, notwithstanding the improved
market for bonds, because "there are times when it is important to take
Immediate advantage of a favorable market."
It further contended that if the Commission regarded only the condition of the market at the time applications are acted upon, and not
at the time of the agreement between issuing and purchasing companies,
carriers could not obtain as high prices for their securities as otherwise
would be obtained.
Prospective purchasers would be unwilling, the railroad company argued,
to take the risk of a decline in the bond market and of having on their hands
a disadvantageous bargain, while, on the other hand, if the market improved, the offer would fail because ofrefusal of the Commission to authorize the sale of securities at the price agreed upon.
The effect of the Commission's decision, the railroad contended, was to
disallow to all carriers the privilege of taking advantage of a favorable
market which is enjoyed bv other corpora Cone.
3648
FINANCIAL CHRONICLE
rirou 131.
The Senator stated that "on account of the adverse effect
R. H. Aishton, President of American Railway Association, Asks That All Forms of Transportation Be of the dumping operations of the Russian Soviet government
Subject to Same Regulations as to Rates and on the coal and manganese industries of the United States,"
he will introduce legislation declaring an embargo on these
Service.
The railroads, through the Association of Railway Execu- products from that country.
In discussing the silver situation, the Nevada senator
tives, recently adopted a policy deemed necessary to the
continuance of adequate transportation service to the public, stated that as a large proportion of silver is produced with
said R. H. Aishton, President of the American Railway copper, lead and zinc, the present low price of silver is
Association, in addressing the opening session of the annual reflected in adverse conditions in the production of these
convention of the American Railway Development Associa- metals. He suggests that the Secretary of Commerce call
tion, on Dec. 4 at the Hotel Sherman in Chicago. "In a conference in Washington of producers and consumers of
taking this action," said Mr. Aishton, "it is only the desire silver, and economists familiar with the situation, in order
of the railroads to have an equal opportunity with other to develop constructive remedies, and "to avert still further
competing forms of transportation when it comes to handling economic disaster in the metal mining industry." The Senathe commerce of the Nation. The railroads are not asking tor points out that "constructive remedies resulting in an
for any special privileges. They simply want all forms of improvement in the price of silver would go far towards
transportation to be subject to the same regulation as to re-establishing normal conditions in the mining industry
rates and service. In other words, what is fair to one, the throughout the western States and materially
increase emrailroads think should be fair to all." Mr.Aishton continued: ployment. It is generally conceded
that the great drop
"The public is entitled to the best transportation at the lowest reasonin the price of silver has had much to do with the worldable cost. Where the rail carriers are prevented, however, through legislation or regulation, from fairly competing with new or old forms of trans- wide industrial and economic depression," says Senator
portation, or where the service rendered by the competitor is a subsidized Oddie.
one, such unfair handicap should be removed.
In stating that "the gold standard again is under severe
"The railroads, with the vast distances that prevail and the need for
mass transportation, constitute the backbone of transportation in this attack on the basis that there will be an
insufficient gold
country. If they are to continue to be so regarded and are to continue
to provide the high character of service they have offorded the public production ten or fifteen years hence to satisfy the requireespecially in the past eight years, public recognition must be given to the ments of industry and trade for currency and credit," Senafact that the rail carriers have to be treated equitably. The railroads, in tor Oddie referred
to the research into the currency and
adopting the policy, bespeak the earnest and thoughtful consideration of
the public from the standpoint of the national interest in maintaining in financial conditions of European countries by the Senate
the highest degree, adequate and efficient transportation in every modern Gold and Silver Commission, of which he
was Chairman,
form, with equal opportunity for all.
"Your association of railway officers, interested In railway development, a few years ago. He said the work of that commission
has a very great interest in the future of railway transportation. You "expedited the return to the gold basis in many European
are interested not only in ecnouraging new lines of commercial developcountries and in the re-establishment of silver currencies,"
ment, but you are also interested in affording equal opportunity, with
other forms of transportation, for the companies you serve to participate and recommends that Congress authorize the bringing of
In the traffic developed. The thoughtful consideration of this problem "this research to
date and extend the foreign financial curis worthy of your very serious effort and attention to the end that the
public may be properly informed, and when properly informed, we have rency and exchange investigation to countries of Latin
no fear that it will reach an unfair or unsound conclusion. Relying, America and the Orient" because
"much can be done
therefore, on this enlightened public opinion, consideration and situation,
the railroads will in the future, as they have in the past, endeavor to be through such research in expediting recovery from the
in the front ranks in bringing about the continued progressive develop- present economic depression."
ment of the American Nation."
In the field of tax legislation, Senator Oddie favors "a
The recommendations made by the Association of Rail- more satisfactory method
than exists under the present
way Executives to which reference was made above by Mr. revenue law for making
depletion allowances to the MinAishton, follows:
ing industry." He favors the percentage depletion system,
1. A respite from rate reductions and suspension by regulating bodies,
both intra- and inter-State, and from action that will increase the expenses which he says has proven satisfactory in the oil industry,
as it will "expedite tax settlements and insure equality of
of the carriers.
2. A respite from legislative efforts of either the national or the State treatment to all producers."
legislatures that would adversely affect rates or increase the expenses of
the carriers.
3. A withdrawal of governmental competition both through direct
operation of transportation facilities, as well as indirectly through subsidies.
4. A fairly comparable system ofregulation for competing transportation.
Amendment to Anti-Trust Laws Proposed by Senator
Tasker L. Oddie to Effect Economies in Production
and Stabilize Employment.
Amendment of the anti-trust laws so as to permit economies in production, stability in the employment of labor and
greater benefits to consumers, is favored by Senator Tasker
L. Oddie, Republican, of Nevada, Chairman of the Senate
Committee on Mines and Mining. The Senator's views are
given in an article in the December "Mining Congress
Journal," in which he discusses this and other prospective
federal legislation affecting the mining industry, including
an embargo against the importation of coal, manganese and
other products from Russia; maintenance of the gold standard; metal mining depletion allowances; and means of
advancing the price of silver from its present low level.
Senator Oddie says:
"Serious conditions have developed in the mining industry. The price
of copper, lead and zinc recently declined to low levels, and that of silver
to the lowest figure in history. In the coal mining industry there prevails
cut-throat competition which is neither in the interest of producers nor
of consumers. Consolidations would afford considerable relief and a
better integration of the producing units with reference to distribution.
Because of the limitations iMposed by the anti-trust laws this consolidation has been impossible. I feel that the time has come when the antitrust laws should be so amended that consolidations could legally be
effected in the public interest and that greater economies in production,
greater stability in the employment of labor and greater benefits to the
consuming public would result.
"There are opportunities for consolidations in the copper industry which
would bring about similar economies in production and be in the public
interest. Railroads, which receive from the mining industry approximately
60% of the total tonnage carried, could deliver transportation service at
less cost through efficiencies resulting from consolidation and integration
with respect to improved distribution. It will be necessary to maintain a
regulatory power so that the privilege of consolidation will not be abused
and become a liability to the public."
Sir Charles S. Addis Before Bond Club of New York
Declares Stabilization Problem is International—
Bank for International Settlements Created to
Deal With Fluctuation in World Prices Due to
Monetary Causes.
Declaring that the problem of stabilization is not a
national one, but an international one, Sir Charles Stewart
Addis, K. C. M. G., Director of the Bank of England, and
Chairman of the Hongkong & Shanghai Banking Corporation, before the Bond Club of New York, on Nov. 24, stated
that it is for this purpose that the Bank of International
Settlements has been created. Sir Charles was Chairman
of the Bank of England Committee which assisted in the
organization of the Bank for International Settlements of
which he is a director and Vice Chairman. In his address
before the Bond Club, Sir Charles declared that "we have
never had before in the iexperience of our country, a fall
so sudden and so catastrophic as the recent fall of prices
virtually throughout the world, wherever gold is used as
a basis." Sir Charles in pointing out that "by stabilization
we do not mean rigidity" went on to say "there is no idea
of fixing prices. All that is desired is that they should be
fairly stable. In the second place," he continued, "it must
be borne in mind that what we have in view is world prices,
and not the internal prices of any country. It should be
clearly understood," he further said, "that it is not all of
the fluctuations in general prices which it is desired to correct, but only that particular portion of the fluctuation which
may fairly be attributed to purely monetary causes." The
speaker stated that "it is too soon yet to discuss what the
possible activities of the Bank for International Settlements
may be in this direction, or the limits within which they
may be prudently exercised." He likewise stated that
"there are many problems unsolved, but still the Bank has
made a beginning, and it is in a position even now to exer-
DEC. 6 1930.]
FINANCIAL CHRONICLE
3649
prices and allow his exchanges to go hang, or he can keep his exchanges
e themround about parity, and allow his internal prices to accommodat
selves to fluctuations in world prices.
things at
The point is that he cannot, as things are at present, do both
be solved by a policy which emme to the same time. That problem can only
led
here
visit
previous
my
of
recollection
central
the
partly
your
I suppose
them. Then, if
recovery braces world prices and is able to stabilize
think that I might speak to you today upon the question of trade
about parity, he has solved the problem.
exchange
his
keeping
is
banker
of
and
India
of
and its close connection with the reopening of the markets
into relation with world prices, and
world have If internal prices are then brought
is
China, where at present one-third of the population of the
as, on our hypothesis, the latter are stable, the purpose of stabilization
much
so
heard
have
I
But
purchasers.
harmony.
ceased to a large extent to be our
completed, and internal and external prices are brought into
shown
interest
the
of
York,
New
in
stay
my
during
also
in Chicago, and
rule. And, I
It is quite true that there are exceptions to this general
of Die
in a subject which comes closer to us today, perhaps, the question
arguments too far.
as I thought can assure you, I am anxious not to press any of these
depression of trade and its possible causes and remedies, that
a central
I It is quite true that cases do occur when it is not possible for
over what I was going to say, in the train from Chicago yesterday,
even if world prices are steady.
prices,
internal
his
stabilize
to
banker
something
say
to
and
subject,
my
decided, with your permission, to alter
in such a
There are cases, tor example, where a country has developed
upon what, for want of a better term, we call stabilization.
a cesa large adjustment of its position is necessary owing to
that
that
way
agreed
all
are
we
that
remarks,
these
of
purpose
the
I assume, for
occasionally, when
most serious sation of the inflow of foreign currency; or, as happens
the
depression,
considerable
very
a
of
trough
the
in
are
we
and establish the
reasons a similar adjustment is necessary, in order to maintain
that we have known for over one hundred years. All sorts of
those cases are exceptions, and I submit
Still,
payments.
of
balance
national
which
for
peculiarity
one
have been offered to account for this depression,
accordance with the
by a school of that what I have said prevails as a general rule in
Is its universal character. We are told, on the one hand,
conditions with which we are faced even today.
actual
exponent,
d
distinguishe
most
the
is
Hobson
economists, of which Professor
one, but an
would only
Clearly, then, the problem of stabilization is not a national
that we are suffering from under-consumption; that if we
it into International one. It is for this purpose, for this important purpose, that
consume a little more, if we would raise wages and salaries, put
would the Bank for International Settlements, of which Mr. McGarrah is the
the power of the workingmen to purchase a little snore, our troubles
is too subtle distinguished President, has been created. There is a very important part
come to an end. I must admit that that kind of an argument
in
one remedy, and in the Young report in which the structure of the bank is set out,
for me. I believe, that, as in private life, there is only
that, in their judgment—and, rememdeliberately
you
state
authors
until
savings
your
the
accumulate
which
to
and
that is to cut your expenditure
scarce ber, they represented the leading industrial and financial interests of
have been able to bring back your capital, which has been rendered
deliberate opinion
America and Europe—these gentlemen gave it as their
by the war.
roduction. that, owing to this instability, the credit structure of the world was in
Then there is another school which finds the fault in over-p
certain danger. In order to secure co-operative effort on the part of central banks,
I suppose it may be said that in a sense that is true; that with
But just some steps were taken to stabilize. The bank, therefore, has been endeavcommodities in certain places there may be over-production.
out a Lumber of functions. It is to act as a factor in keepconsider, gentlemen, that while we have been talking about the enormous oring to carry
died of ing normal the foreign exchanges. It is to facilitate the flow of internaaccumulations in wheat, for example, over a million people have
and the carrying out of international settlements. It is
starvation in China. I submit that over-production is no explanation at tional payments,
purpose of opening up new markets of trade, and
all ; that if there is over-production, it is in particular places and at par- to use its credit for the
It is to make its credit available for the use of
ticular times, and that, in a general sense, it has no existence, except in of supply and demand.
generally in their ordinary exchange operations, as a
bankers
exchange
imagination.
to be distinguished in its exercise from the
I have also heard a good deal spoken here about the fall in silver as normal function, scarcely
by bankers generally.
being an important cause in this distress. It has been asserted, both by use of banking credit
today is the question of the
But the point on which I wish to speak
speech and in print, that the purchasing power, for example, of the Far
l Settlements and its relation to stabilization. What
East, has been halved, because silver has fallen from thirty pence to six- Bank for Internationa
of can the Bank for International Settlements do?
teen pence an ounce. Well, it is true that a sudden and abrupt fall
ry to the resolution which was
themThe policy of stabilization is complementa
that sort does occasion a certain dislocation before prices can adjust
by the nations at the Geneva Conference in 1922,
selves to the new measurement. But China has had many such vicissitudes passed unanimously
coun- which enjoined upon the central bankers the duty of taking steps to prein the past, and it is very extraordinary in those partially developed
changes in vent undue fluctuations in the value of gold, in other words, in the
tries how very quickly prices adjust themselves to those abrupt
movements of prices.
the gold exchange.
Paris, went upon
Both these policies, the one in Geneva and the one at
Furthermore, I think we have to recollect, when that particular sugthe the assumption that central bankers in point of fact do exercise a potent
gestion is put forward, that the purchasing power does not inhere in
her influence upon the volume of credit and currency, consciously or unconmedium of exchange. The purchasing power of China does not rest in
choice. Whether
sciously, whether they like it or not. It is not a matter of
silver. It rests in her tea, in her silk, and in her soya beans.
do exercise a potent Influence
Therefore, I think that all those suggestions seem to me to fail to meet they are in the gold standard or not, they
credit, and since it is not possible to
the point, and that I suppose we must content ourselves by saying that the upon the volume of currency and
affecting the price of commodities,
causes of the present distress are many-fold; that they are deep-rooted in control the volume of currency without
the degree of this power may be,
their origins, and that possibly more than one remedy may be required you arrive at this point: that whatever
that they
whether the central banks ought to use it or not, to what extent
before we can recover.
out the monetary policy may be a
But there is one characteristic which I think we should till agree is can use it effectually in carrying
argument; but that the power is there
especially marked out in this depression, and that is the continual fall in matter of argument, is a matter of
also is no particularly new is not open to question at all.
that
that
true
is
It
prices.
of
level
general
the
hesitate to speak
you had a rise of
It is, of course, far too soon, and in any case I should
feature. From 1850 to 1876, and from 1876 to 1897,
opening of the war, a similar fall. about it in the presence of the President, it is too soon yet to discuss what
20%, and from 1897 onwards to the
Bank for International Settlements may be
But we have never had before in the experience of our country, or I the possible activities of the
within which they may be prudently exerlimits
the
in
the
as
fall
recent
catastrophic
or
so
and
direction,
sudden
this
so
in
believe of yours, a fall
say that the Bank has made an auspiis
to
gold
soon
used
as
too
wherever
a
basis.
not
is
world,
it
But
the
cised.
throughout
prices virtually
the fall in prices is the cious beginning, and that the impression left upon one of the Directors,
This does suggest that without asserting that
many causes, there does seeni at any rate, is that of a growing sympathy, a spirit of give-and-take, and
only cause, admitting freely that there are
important, if not a predominant with mutual understanding and good-will, which, I think, are a happy
at least reason to believe that it is an
banking community generally were augury for the future.
cause, and that it might be well if the
but still
segregate this particular cause, to
There is much to be done. There are many problems unsolved,
to address themselves to an attempt to
other it may not be pos- the Bank has made a beginning, and it is in position even now to exercise
or
way
some
in
if
see
to
and
nature,
examine its
industry and upon business an effect upon the international market which, in my judgment, is likely
sible to prevent its disastrous effects upon
to increase with the years.
enterprise.
for International
in the long run the greatest proIt is not to be supposed that the Board of the Bank
If we agree, as I assume you do, that
comparatively stable level of prices, Settlements will allow the very important resources wldch they already
duction will be obtained by having a
further and make it quite clear to our- derive from currencies in nineteen or twenty different denominations, to lie
then I think we ought to proceed
about stabilization, and also be quite Idle, or that the Directors will allow to go by default the exercise of the
talk
we
when
mean
we
what
selves
curve which
every one of us.
first of their mandates, namely, to flatten out an exchange
sure that it means the same thing to
n—and you will excuse me if I appears to be deflected from the normal by temporary or arbitrary causes.
Now, when we talk about stabilizatio
but there appears to be so much con- In effect, the operation would amount to a transfer of funds from the
am very elementary at this point,
it does appear to be worth while to market where they are less in demand and the rate of interest therefore
fusion of thought on the subject, that
what one does mean--in the relatively low, to the market where they are more in demand and the
clearly
reiteration,
of
risk
the
state, even at
not mean rigidity. There is no idea of rate of interest therefore relatively high. The reduction of the funds in
do
we
,
stabilization
by
place,
first
that they should be kept fairly stable. the one market, and the increase of funds in the other, will tend to level
fixing prices. All that is desired is
borne in mind that what we have in view out the differences in their respective rates of interest. Incidentally, the
In the second place, it must be
for
internal prices of any country. The latter is support given to the relatively weaker currencies through the demand
Is world prices, and not the
the world prices, is foreign exchange, will tend to restore the equilibrium between internal and
the
former,
;
concerned
bank
Central
a matter for the
central banks. And, thirdly, what we external prices which, upon our hypothesis, has been temporarily disturbed.
a matter for the combination of
but only general prices. The price Not only that, but I think one may say also that the increased mobility
prices,
particular
not
is
mind,
have in
move freely up and down. As one goes and velocity given to the international monetary media will in itself tend
of steel, cotton and wool, may
which increases the amount for the to cheapen the world rate of interest, and in this way facilitate the supply
down, a certain amount is released
level of general prices is kept approxi- of capital required to restore the old industries and to encourage new
others, and so long as the stable
items of which their general average enterprises.
mately steady, although the particular
for which
or down, the purpose of the policy of
I throw this out as an illustration of the type of operation
price is composed may fluctuate up
assume increasing
the B. I. S. is already equipped, and which is likely to
stabilization has been achieved.
at least most important In this sense, importance in the future.
Then perhaps most important, or
d, if the bankers are applying themselves to
It would, of course, be !die to deny that there are formidable difficulties
that it is often misunderstoo
as I hope they will on this, that it should in the way. The fact is, that on this whole monetary problem, we are not
this inquiry on the other side
is not all of the fluctuations in general prices quite agreed as to the proper direction that we ought to take, and a long
be clearly understood that it
but only that particular proportion of the and intensive study of the conditions will he required before the Directors
correct,
to
desired
is
which it
attributed to purely monetary muses. of the Board have arrived at that kind of background which is required for
fluctuation which may fairly be
example, which is due to increased produc- the harmonious co-operation of their representatives on the Board of the
A gradual rise in prices, for
and it would be folly to endeavor to correct Bank.
tion, is a very good thing,
if the fall in prices can be shown to be due
I think we should be careful even in asserting the power of the Bank
that. But, on the other hand,
currency in relation to the increased production, to control the currency to remember that it has its limitations; that cheap
to a distinctive supply of
are in control of the volume of currency and money, until it has been pulverized into an increased amount of currency
then it is for the banks who
the deficiency.
and credit, is not itself any remedy; that circumstances may and do occur
credit to step in and make good
it was the function of the central bank of any in which a country develops, the economic situation of a country develops
I said a moment ago that
to look after the control of currency and in such a way as to render nugatory the advantage of cheap money, and
country, indeed it is its business,
say that the central banker is at present rather indicates that a counter-policy of high rates of Interest may be
credit. But it is only fair to
can either stabilize his internal required before conditions may be restored to a sound footing. But still
placed in somewhat of a dilemma. Ile
cise an effect upon the international market, which in my
judgment is likely to increase with the years." The speech
of Sir Charles follows in large part:
3650
FINANCIAL CHRONICLE
It is true, I think, that a low rate of interest is an indispensable
condition
to a recovery of trade. In the long run, it still holds
true that a continued low market rate of interest will inevitably, in the long
run, reduce
the spread between short and long term credit, and thus pave
the way for
the redistribution of some of the mal-distributed capital of the world,
which is so urgently required, if our trade is to recover.
And, gentlemen, if we are not to miaimize the difficulties, so I think
we ought not to minimize the importance and the potential power of this
new financial instrument which has been forged by the makers of the
Young plan. You must not expect too much of the central bankers in the
early stages of the bank's infancy, but they are men who have not been
accused of lack of courage. They will be eager to try the mettle of this
new weapon. They are not likely to allege the fear of failure as a reason
for not carrying out the first and the most important of their mandates.
Whatever the difficulties—and difficulties were made to be surmounted—
but whatever they are, it is time they were faced, and, if possible, solved,
for the problem is urgent. Instability is dogging our steps at every turn,
and rendering ineffectual all our attempts to stimulate a recovery of trade,
to maintain and continue the stability of our credit structure, to secure
for the worker his assured reward, and to inspire in his breast new faith
and courage. All this will fail, must inevitably fail, until something can
be done to give us a reasonable amount of stability in our currency.
The future is no doubt gloomy and the prospect dark. There is very
little, on our side at least, to see of a turn of the tide. But if the Directors of the Bank for International Settlements can secure the support of
the public opinion, because that is all-important in this country and Great
Britain, they will, I believe, rise to the height of their great opportunity,
and elevate their minds and imaginations to the magnitude and true impetus of the task which lies before them, and we shall weather the storm.
We sail the changeful sea, through halcyon days and storm. Our stability
is but balance, and true wisdom lies in masterful administration of the
unseen. It is simply unthinkable that we shall continue to sit with folded
hands while industry and trade throughout the world are becoming the
sport of our ineffectual monetary systems. We must be masters in our
own house, the rulers, and not the slaves of money. (Applause).
Representatives of Railroad Brotherhoods Call Meeting
in Washington Dec. 8 to Consider Six-Hour Day.
A call was issued at Cleveland Dec. 4 to representatives of
all railway labor organizations in the country to meet in
Washington Monday next, Dec. 8, to consider plans for
obtaining a six-hour day in the railroad industry. The
project will be pressed in an effort to aid about 50,000 unemployed men on the railway unions' rolls. The Associated
Press accounts from Cleveland Dec. 4, reporting this,
further said:
[VOL. 131.
help themselves to the taxpayers' money and use it to
divert traffic
and earnings from the railways and deprive railroad men
of their employment. The Brotherhood of Railway Clerks previously had
adopted
resolutions similar to those of the train service brotherhoods,
and it
seems reasonable to anticipate that other organizations of
railway employees will do likewise.
"Every other industry opposes government subsidizing of competition
with it. Why, then, should the State and National governments
subsidize
competition with the railways and their employees on both
waterways
and highways?
"Our governments have accepted the economic view that high
wages
and the eight-hour day in the railroad industry are desirable.
How,
then, can it be desirable for our governments to aid in subjecting
railway
employees to the competition of men operating both boats
and motor
vehicles who are required to work much longer hours and
are paid much
lower wages than railway employees?
"We are supposed to be especially committed in this country
to the
public policy of treating alike the private capital invested
in, and the
persons employed by, our various industries. In no country,
outside of
Russia, however, is any industry and its employees being
treated with
such utter disregard of what we profess to accept as sound
economic
principles and fair government policies as are our railroads and
their
employees. To confiscation of railway capital has been added confiscation of railway workers' employment. To destruction of the
rights of
those who invest has been added destruction of the rights of those
who
work.
"We believe that the sane business men of the country will
rejoice
because of the stand taken by the railways and the train service brotherhoods. Intelligent business men have been feeling increasing alarm
regarding the drift of the railroad industry toward disaster. Many
thousands
of employees have come to a realization that they are injured far
more
by losses of railway traffic than are the railways themselves,
and they
have become tired of tolerating politicians who pander to them
during
political campaigns and between campaigns promote policies
that reduce
the number of railway jobs."
Samuel Ungerleider 8c Co. Reduce Margin
Requirements.
Samuel Ungerleider & Co., members of the New York
Stock Exchange, have announced a reduction in their minimum margin requirements on active stocks listed on the New
York Stock Exchange. This reduction particularly applies
to low-priced stocks. It is understood that the firm's
action is due to the fact that at present about half of all the
active stocks are selling below $40 per share. Under the
new schedule, the firm reserves the right, as usual, to require
a larger margin, in its discretion, on any particular stock or
stocks. The new schedule became effective Dec. 1, in all
the firm's branches throughout the country.
Ungerleider & Co.'s new minimum margin requirements
on stocks listed on the New York Stock Exchange are:
Ed per share on stocks selling between 10 and 1934;
$8 per share on stocks selling between 20 and 2974:
$m per share on stocks selling between 30 and 39%:
A second purpose of the Washington meeting will be to discuss the
possibilities of a common fight with railroad operators against the competition of motor trucks, pipe lines, waterways and buses, according to
David B. Robertson, President of the Brotherhood of Lcoomotive Firemen and Enginemen.
Mr. Robertson, as Chairman of the Executives' Association, sent out
the call for the full conference to meet at 10 a. m. Monday. It went to
B. M. Jewell, head of the Railway Employes' Department of the American Federation of Labor, in addition to national executives of fourteen
unions besides the brotherhoods.
Mr. Robertson said men now out of work could be returned to jobs at
$12 per share on stocks selling between 40 and 49%; and
once if the number of miles traveled by train crews on each shift were
25% of market value on stocks selling above $50.
reduced and the number of working hours cut down for other railroad men.
Stocks selling below $10 must be paid in full.
The call for the Washington session was announced after a conference
of the chief executives of the five big brotherhoods of railroad employes,
A cut by E. A. Pierce & Co. in margin requirements was
which met here to further the shorter day campaign put under way at a noted
in our issue of Nov. 22, page 3303.
meeting of several hundred representatives of the "Big Five" at Chicago
from Nov. 12 to 22. The executives will continue their conferences tomorrow in an effort to complete the groundwork for the Washington
Double Liability Affecting Corporations in Minnesota
meeting.
Those formulating the general conference plan were, besides Mr. RobertTerminates as Result of Amendment to Law Which
son, Alvanley Johnson, grand chief of the Brotherhood of Locomotive
Had Been in Effect Since 1858.
Engineers; E. P. Curtis, President of the Order of Railway Conductors;
A. F. Whitney, President of the Brotherhood of Railroad Trainmen, and
The following Minneapolis advices are from the "Wall
T. C. Cashen, President of the Switchmen's Union of North America.
Streat Journal" of Dec. 1:
The possibility of seeking a five-day week, which has been informally
Incorporation of companies in Minnesota from now on is likely to increase
mentioned in railroad circles along with the proposed six-hour day as a
means of giving work to many unemployed railroaders, which was tenta- greatly because of the passage of the amendment at the recent election
disposing
of the double liability law. Since 1858, when Minnesota became
tively discussed at Chicago, was not officially mentioned.
a State, this double liability has existed, embodied in the Constitution of
The Chicago conferences of last month were referred to the State.
Passage of the amendment did not change the status of banks or trust
in these columns Nov. 29, page 3469.
companies, which still have double liability, but it removed it from all other
corporations. It removed it, however, not arbitrarily and finally, but by
Railway Executives and Labor Brotherhoods Demand giving power to the State Legislature. An interesting situation also arises
Fair Treatment for Railways and their Employees— as to the retroactive effect of the passage of the amendment in the event of
the insolvency ofa company incorporated prior to passage ofthe amendment
Editorial Discussion by "Railway Age."
should the question of stockholders' liability be raised. This would have
"The future of the railroad industry looks brighter now to be interpreted by the court.
than it has for a long time," declares the "Railway Age,"
its reason for making this statement being action taken Uniform Bank Laws Planned for West—Legislation
Recommended by National Association of Bank
recently by the five great brotherhoods of train service emCommissioners Will Give Additional Safety to
ployees and the Association of Railway Executives.
Depositors.
"Meeting in Chicago recently, the general chairmen of
The following is from the "United States Daily" of Dec. 1:
the five great brotherhoods of train service employees
adopted resolutions condemning every form of government
By Walter H. Hadlock, Bank Commissioner, State of Utah.
During the Convention of the National Association of Bank Comsubsidy and discrimination in behalf of the competitors of
missioners in San Francisco about one year ago, the Bank Commissioners
the railways by waterway and highway," says the "Rail- representing
the States included in the 12th (San Francisco) Federal Reserve
way Age," which further states:
District met with the officers of the 12th Federal Reserve Bank to discusss
the necessity of adopting some uniform bank legislation. Again at Port"Immediately afterward the Association of Railway Executives, meetland, Ore., early last summer the same officers, together with members
ing in New York, put into definite form and made public the consensus
from the various State Legislative Committees, met for the same purpose
of opinion of railway managers regarding the various government policies
Since then there has been prepared a comparative schedule of the banking
that must be adopted to put the railroad industry on a basis of economic laws of
the Western States. This schedule reflects a great variation in the
equality of opportunity with its competitors and to enable it to make different
States' banking laws now existing. The rapid changes now taking
adequate earnings.
place in our banking industry due to interstate banking are making it more
"Thus, railway executives and the most influential railway labor organ- important that somewhat of a uniform code of banking laws be
adopted.
izations in the country announced that they no longer intend to allow With the view of attaining uniformity in our banking laws, the
legislative
politicians and selfish business interests, alined without resistance, to committee of the Utah Bankers' Association and the State Banking
Depart-
DEC. 6 1930.]
FINANCIAL CHRONICLE
ment are co-operating in their efforts to recommend to the coming Legislature certain changes in the Utah banking laws that will add additional
safety to banks depositors and further establish confidence in the banking
industry of Utah.
Banking in Indiana Declared Sound—State Commissioner Submits Report on Situation Throughout
State.
Under the above head the "United States Daily" of Dec. 1
said:
A nation-wide survey of the present condition of State banks as reflected
in statement telegraphed to the "United States Daily" by the Banking
Commissioners of 41 States appeared in the issues of Nov. 25 and 26.
Indiana has now reported, and the statement made by the State Commissioner is given below in full text:
Indiana.
Luther F. Symons, Bank Commissioner.
Conditions were fast stabilizing until the recent failure of the National
Bank of Kentucky, tying up more bank assets than has occurred in Indiana
in a generation and causing the closing of seven of our banks and embarrassing many others. This corning so close upon the effects of the
drouth has given the Southern part of the State a new problem, over which
It will, however. prevail.
The failures thib season have invaded in the city banks with capital
stock of $100,000 or more. The reserve is better than it was a year ago.
Cash reserve is 183i%. The reserve in United States and other bonds is
21.7%. There is a surplus of funds in city banks. Loans have declined
but not in keeping with the decline in deposits. Much progress has been
made in the formation of credit bureaus and clearing house associations.
The strengthening of existing laws and not agitation of changes by Congres,or by the General Assemblies of the several States is considered the
best course under existing conditions. The finances of the State are fundamentally sound and in due time bank failures will be reduced to a minimum.
Failure of Arkansas Banks Ascribed to Unfounded
Rumors—State Proposes Prosecution of Persons
Circulating False Reports Concerning Institutions'
Finances.
In a statement issued Nov. 28 declaring that unfounded
rumors have caused financial difficulties of many of the
banks which have closed or suspended in Arkansas during
the past two weeks. State Banking Commissioner Walter E.
Taylor of Arkansas issued a warning that prosecution will
be instituted against persons circulating falst rumors concerning the financial standing or reputation of banks in the
State. We quotu from Little Rock accounts Dec. 1 to the
"United States Daily", which also contained the following
information:
• Commissioner Taylor cited an Act of the 1917 Legislature, Section 736
of Crawford & Moses' Digest of the State Statutes, which makes it a misdemeanor,punishable by a fine up to 8500 and a jailsentence of three months
to a year to circulate or cause to be circulated rumors that may be injurious
to the reputation or standing of any State or 'National bank.
Cites Other Cases.
He cited that many cases are on record in Arkansas and other States
where runs have been started on solvent and financially strong banks by
groundless rumors.
"The uneasy state of mind created recently by the closing of several
banks in Arkansas appears to be practically dissipated, and if no more flase
and unfounded rumors are circulated, the banking situation will remain
normal," Commissioner Taylor said.
His statement continued:
"Many citizens probably do not know that there is a law in this State
prohibiting circulation of rumors concerning banks. It never has been
necessary to resort to this statute, except probably in a few isolated cases,
but the State Banking Department believes that the law was provided to
check idle rumors, and it is the intention of this Department to cause
the arrest and prosecution of any persons reported to be circulating malicious
rumors concerning any bank."
Quotes Statute.
Commissioner Taylor cited the complete statute governing such cases
which is as follows:
"Whenever any person maliciously and without cause circulates, or
causes to be circulated, any rumor with the intent to injuriously affect the
financial standing or reputation of any bank, either State or National,
doing business in this State, either verbally or in writing, or makes any
statement or circulates or assists in circulating any false rumor for the
purpose of injuring the financial standing of any bank, either State or
National, or seeks either by word or action to start a run upon said bank,
or connives or conspires with any parties for the purpose of injuring the
standing or reputation or starting a run on said bank, shall be
deemed
guilty of a misdemeanor, and upon conviction thereof shall be punished by
a fine or not more than $500 and by imprisonment in the county jailfor
not leas than three months, nor more than one year.
Banking Situation in South and Middle West Continues to Improve.
Improvement in the banking situation in the South and
Middle West continued during the past week. United Press
advices from Little Rock, Ark., on Monday, Dec. 1. reported that three more Arkansas banks, which either closed
or suspended during the financial difficulties that followed
the failure of the Nashville investment firm of Caldwell &
Co., had re-opened on that day, bringing the number of
banks in the State to reopen to 19. Those reopened Dec. 1
were the Bank of Glenwood, the Cross County Bank at
Wynne, and the Bank of Maynard. On the same day,
Dec. 1, an Associated Press dispatch from Stephens, Ark.,
stated that the Peoples' Bank of that place had suspended
that day for a five-day period. The dispatch added, however, that "officials said the closing was for reorganization
or possible consolidation with the Bank of Stephens. Nego-
3651
tiations for the proposed merger are in progress, it was
announced." Another dispatch by the Associated Press
from Blytheville, Ark. on Dec. 1, stated that the First
National Bank of Blytheville failed to open on that day and
an announcement posted on the door said it had been closed
"pending a merger with the Farmers' Bank & Trust Co."
and that officials of both the institutions were said to be in
conference that morning. Still another dispatch by the
Associated Press from Hardy, Ark., on Dec. 1 stated that
A. M. Metcalfe, President of the Farmers' Bank of that
place, had announced that night the suspension of payments
by his institution for the five-day period allowed by Arkansas
laws. Mr. Metcalfe was furthermore reported as saying
that he hoped to reopen the institution. The bank, the
dispatch said, was the only one in Hardy and was capitalized
at $7,500. Its last statement showed, it was said, deposits
of $106,000.
On Dec. 3, advices to the "Wall Street Journal" from
Conway, Ark.,reported that the Faulkner Co. Bank & Trust
Co., which had suspended for five days on Nov. 29, was
formulating plans for reorganization. The institution,
whose President, B. L. Harton, died two months ago, was
established in 1902, the dispatch said.
In Tennessee, the Maynardville State Bank, Maynardvine, which has b )en closed and in the hands of State bank
examiners for eight days, was reported reopened on Dec. 5
(after its directors and stockholders had raised $10,000 in
funds), in United Press advices from Knoxville, Tenn., on
that date.
A suit to recover $25,000,000 from the officers and directors
of the Bancokentucky Co., the Louisville National Bank &
Trust Co., the National Bank of Kentucky and the Louis..
ville Trust Co.for the benefit of the stockholders and depositors was filed on Dec. 1 in the Jefferson Circuit Court in
Louisville. On the same day the Bancokentucky Co.
(which is a Delaware corporation) was named defendant in
another suit filed in the U. S. District Court at Wilmington,
Del., seeking to liquidate the company. The Louisville
"Courier-Journal" of Dee. 2 in its report of the matter, said
in part:
Officers and directors of the Bancokentucky Co., the National Bank of
Kentucky, the Louisville Trust Co. and the Louisville National Bank &
Trust Co. were named defendants in the suit filed here for the benefit of all
stockholders, depositors and creditors. Alleged mismanagement and
transactions with Caldwell & Co. were said to have resulted in the losses it
was sought to recover from the officers and directors.
The Delaware petition likewise charged mismanagement of the Bancokentucky Co.'s affairs and sought to have the corporation dissolved and its
assets converted into cash as speedily as possible. An injunction was asked
to prevent the company from disposing of its property and the Court was
further asked to appoint a receiver. The Delaware suit was filed by Rogers
Bros., Bevier, Ky., a partnership composed of Lon Rogers, Ashland, Kw
Fon Rogers, Lexington, Ky., and J. L. Rogers, Greenville, Ky.
The Louisville suit was filed in the name of Rogers Bros., the Roger"
Bros. Coal Co. and Dr. Luther F. Scholl, Jamestown, Ky. Dr. Schollfiled
as a stockholder in the National Bank of Kentucky and Rogers Bros. filed
as stockholders and depositors in the bank.
There were 46 defendants in the list, headed by James B. Brown, Presi
dent of the Bancokentucky Co. until a few days ago, and head of the
National Bank of Kentucky, which was closed Nov. 17.
Paul C. Keyes, receiver for the National Bank of Kentucky, Louisville, on Dec. 2 announced the redemption of
paper held by the Federal Reserve Bank to make legal offsets possible, according to the Louisville "Courier-Journal"
of Dec. 3, which quoted Mr. Keyes in his announcement as
saying:
The redemption includes $5,040,000 in bills payable, secured by approximately $9,000,000 in bills receivable belonging to the National Bank of
Kentucky. This includes reserve of $2,000,000, collection made by the
Federal Reserve, on collateral of $1.900,000, cash paid for collection.
The debt now stands at approximately $600,000 on bills payable. They
still have approximately 1.800,000 in our security, not released. We expect
to pay 8600,000 to-morrow, thereby enabling us to recommend all legal
offsets, which could not be allowed so long as the paper was pledged.
This method was approved by J. W. Pole, Comptroller of the Currency, the second day the bank was closed, Nov. 18. This was in order
that the financial situation might be relieved, particularly, by placing
these offsets in operation.
The Louisville paper added:
This course will enable the receivers to deal directly with the borrowers:
who in several instances were creditors at the bank. After the bank
closed, borrowers learned that the bank already had discounted their
notes with the Federal Reserve Bank, placing them in the position of
owing that institution instead of the National Bank of Kentucky.
The Raleigh "News and Observer" of Nov. 28 printed
the following dispatch from Whiteville, N. C., under date
of Nov. 27, reporting the closing of the Bank of Chadbourn,
N. C., on that day and the intention of the Waccamaw
Bank & Trust Co. of Whitefield to open a branch of that
institution in Chadbourn the next day, Nov. 28:
Information was received here to-day that the Bank of Chadbourn had
closed its doors at the close of business yesterday not to open again.
"Frozen" assets are reported here as reason for the closing of the
bank.
According to information here the bank found that it was not
making a
3652
FINANCIAL CHRONICLE
profit such as would justify it in remaining in business and decided in the
Interest of its depositors and stockholders to suspend operations. J. L.
Blake is President. and C. L. Tate, Cashier of he bank.
Chadbourn, however, will not be a single day without a bank, as the
directors of the Waccamaw Bank & Trust Co. held a meeting to-day
(Nov. 27) and decided to open a branch in Chadbourn to-morrow. The
the
Scockholders met immediately after the board of directors and ratified
action of the latter.
instituK. Clyde Council is President, and J. M. Coburn, Cashier. The
tion was organized four ye trs ago and is declared to be in a flourishing
condition. Permission of tie State banking authorities for the bank to
open a branch on such short notice is pointed to as evidence of the standing
of the Whiteville financial institution in the view of the State banking
officials.
Two North Carolina banks, the First National Bank of
Charlotte (said to be the oldest national bank in North
Carolina) and the Zebulon Banking & Trust Co. of Zebulon,
failed to open for business on Dec. 4, according to adviees
by the Associated Press on that day from Charlotte and
Raleigh. In the case of the Charlotte bank, the dispatch
from that city said:
door,
A notice, signed by H. M. McAden, President, and posted on the
said heavy withdrawls led to a decision to close the doors for the protection
of all depositors. The bank is in the hands of national bank examiners.
a
Founded in 1869, the First National had a capital stock of $300,000,
'surplus of $400,000 and on Sept. 24 reported deposits of approximately
$1.887,000.
The disptach from Raleigh, reporting the closing of the
Zebulon bank, stated that the closing followed a series of
withdrawals, but the directors hoped to reopen the
institution.
Advices from Charlotte to the New York "Journal of
Commerce" on Dec. 4, reporting the failure of the First
National Bank, contained the following additional information regarding the banking situation in Charlotte:
[VOL. 131.
heavy withdrawals, according to a dispatch by the Associated Press from Jefferson City, printed in the St. Louis
"Globe-Democrat" of Dec. 4. The institution, whose last
financial statement showed deposits of $351,263, was placed
in the hands of the State Finance Department and C. V.
Estes, a State bank examiner, directed to take charge of its
affairs, it was said.
State of Tennessee Sues Caldwell & Co., Nashville, for
$3,060,000 on Deposit in Closed Bank of Tennessee,
Subsidiary of Firm—Attorney General Charges that
Some One Substituted Securities Demanded by the
State.
On Thursday, Dec. 4, the State of Tennessee, through
Attorney General L. D. Smith, filed a bill in the Chancery
Court asking recovery from Rogers Caldwell and four
associates in the Nashville banking investment firm of
Caldwell & Co., which went into receivership last month,
of $3,060,000, said by the petition to have been on deposit
in the closed Bank of Tennessee of Nashville (which acted
as a financial agent for Caldwell & Co) to the credit of
the Highway Department, according to Nashville advices
by the Associated Press on Dec. 4, printed in yesterday's
New York "Times." The dispatch continuing said:
Another bill filed simultaneously by the State asks the sale of "The
Brentwood Hall," where Mr. Caldwell makes his home. This bill named
Mr. Caldwell, his father, James E. Caldwell, and the Nashville Trust
Co. as defendants.
Attorney General Smith said earlier in the day that he believed that
substitutions of securities which, he declared, had been made in the
Bank of Tennessee between its September examination and November
closing, "were made either by officers of the Bank of Tennessee or by
with officers of some of its affiliated concerns."
Erroneous reports which confused the Charlotte National Bank
but its
The securities, he said, had been deposited by the bank in September
the First National led to heavy withdrawals from the former,
statea
issued
and
as additional assets at the demand of the Superintendent of Banks for
afternoon
officers kept their doors open throughout the
on hand the protection of its depositors. While the Superintendent estimated the
ment that the bank was in a sound condition and had ample cash
open during the worth of securities at that time at $3,840,000, Mr. Smith said "the value
to meet all demands. Two other banks also remained
to of such securities at the time of the close of such bank was uncertain,
subject
not
afternoon for the convenience of depositors. Though
statements as was likewise the value of the securities which the receiver found on
excessive withdrawals, all remaining banks in the city issued
assuring depositors that they are in sound condition and with the excep- hand at the time he took charge of the bank."
to have
He had learned only a few days ago, the Attorney General stated,
tion of the Charlotte National, withdrawals were generally said
ram little above average. A number of savings accounts were closed, "that other securities had been substituted for those originally deposited"
so
was
certificates
savings
postal
upon the Superintendent's demand.
however, and inquiry for 'United States
great that Postmaster J. D. Albright issued a statement urging depositors
"While neither this office nor the Superintendent of Banks knows the
to leave their money in the banks.
identity of the persons making such substitution and the manner thereof,"
be added, "I have every reason to believe that these substitutions were
According to Associated Press advices from Marten, N.C. made either by officers of the Bank of Tennessee or by officers of some
the
Maxton,
at
Robeson
of
Bank
the
of its affiliated concerns."
yesterday, Dee. 5,
The Bank of Tennessee, a subsidiary of Caldwell & Co., investment
only bank in the place, an institution capitalized at $50,000,
banking house, went into receivership last month.
failed to open. Officers, it was said, assigned bad collections
The Attorney General said that the proceeds of the sale tomorrow of
Rogers Caldwdl's racing stable and stud would be placed in trust "by
as the reason for the closing.
the
agreements" as a protection for the State's deposit in the closed Bank
In Ohio a small bank was closed on Nov. 29, namely
of Tennessee.
reported
was
closing
The
Mendon.
of
Bank
First National
Mr. Caldwell, the president of Caldwell & Co., now in receivership,
stated
which
Ohio,
was one of the personal sureties on bonds signed as a security for the
in Associated Press advices from Celina,
deposit.
that "frozen assets" were said to be the cause of the bank's State
The sale will be under the management of C. J. Fitzgerald of New
embarrassment. The institution was capitalized at $25,000 York and sixty-four thoroughbreds are to be auctioned. Heading the
and served a farming and trading community. The directors stable are Imp. Hourless, noted sire and race horse, and the race mare
stated that "they believed the loss to depositors and stockholders would be slight."
In Indiana the American Bank & Trust Co. of New
Albany, reopened for business Dec. 1 after having been
-closed since Nov. 20, according to Associated Press advices
from that place on Dec. 1, which went on to say:
financial
It was closed by directors to safeguard its resources after
conditions here were disturbed by a series of bank closings in Kentucky.
of the
Officials of the bank said the institution has met all requirements
Indiana State Banking Department.
Subsequently (Dec. 4) the reopening of the Old Capital
Bank & Trust Co. of Corydon, Ind., which had been closed
since Nov. 21, was reported in a dispatch by the Associated
Press from that place.
Dec. 1.
In the State of Illinois four banks were closed on
that
on
Ill.,
Springfield,
from
dispatch
Press
An Associated
an
day, stated that two of the institutions had closed as
National
Benton
the
of
week
last
failure
the
-outgrowth of
First NaBank at Benton, Ill. The institutions were the
the
Bank,
State
City
the
Johnson
Marion,
of
Bank
tional
Co.
Bank
Trust
and
the
Marine
Grove
State Bank of Rock
•of Carthage. The dispatch said in part:
the Johnson City State Bank
The First National Bank of Marton and
cities without banking
closed their doors to-day (Dec. 1) leaving both
action was to prevent
facilities. The Marion institution announced its
heavy runs Friday and
further heavy withdrawals. The bank withstood
their decision to close
Saturday. Directors of the Johnson City bank said
of the situation in Benton and Marion.
because
run
a
of
anticipation
in
was
with
Advices by the United Press from Marion, Ill.,
Bank of that
National
the
First
of
closing
the
to
reference
of applace, stated that the institution had resources
proximately $2,000,000.
Trust Co.,
A Missouri bank, the Bloomfield Bank &
resources of
Bloomfield, Stoddard Co., an institution with
because of
4582,568, was closed on Dec. 2 by its proctors
Lady Broadcast.
According to Nashville advices to the "Wall Street
Journal" on Dec. 4 the receivers for Caldwell & Co. have
been authorized to sell the holdings of the company in
the Inter-Southern Life Insurance Co., amounting to
1,900,000 shares valued at $2,850,000. Federal Judge
John J. Gore, it was stated, granted the request for the
sale, as asked by the receivers, after a hearing on the
petition.
ITEMS ABOUT BANKS, TRUST COMPANIES, &c.
Arrangements were reported made this week for the sale
of a New York Stock Exchange membership for $246,000, a
loss of $4,000 from the last preceding sale.
Arnold J. Colombo was elected Cashier of the Harriman
National Bank & Trust Co. of New York at a meeting of the
Board of Directors, on Dec. 4. Mr. Colombo's promotion
is a recognition of his many years of service with the bank
and follows a policy of promoting from within the organization.
On Dec. 19 a meeting of the stockholders of the Union
Bank of Bronx County of New York will be held to vote on
the proposed merger of that bank with the Underwriters
Trust Co. Stockholders owning two-thirds of the stock in
the Union Bank have already signified their approval of the
merger. If the stockholders ratify the plan James A. Kenny,
President of the Union Bank will become a director of the
Underwriters Trust Co., and Alfred Koch, Vice-President
and Cashier of the Union Bank will become a Vice-President
of the Underwriters Trust to remain actively in charge of the
banking office assisted by most of the present personnel.
The agreement also provides for the continuance of the
banking business of the Union Bank at its present premises
FINANCIAL CHRONICLE
DEC. 6 1930.]
3653
From 1924 to 1929 Mr. Conrad was Vice-President of the National
Republic Co., and for 10 years previous to that time was associated with
Lea Higginson & Co. He is a graduate of the University of Chicago and
had a wide acquaintr.nce in the Chicago territory.
in savings accounts, $935,000 commercial deposits, and approximately
$30,000 in the Christmas savings.
"During the last 10 days," Mr. Shippee said, "the directors have made
an effort to place the bank in a more liquid condition and have pledged
$150,000 to surplus account of the bank. A large part already has been
paid in cash.
"After analyzing the assets of this bank, we are of the opinion that the
depositors are fully protected and that the suspension will be a temporary
one, as negotiations are already under way with well known banking interests looking toward reorganization of the bank. If such reorganization is
accomplished, the bank will operate with added strength, increased facilities
and excellent management."
The President of the bank is Emil Hemming, former State Assemblyman,
who was Chairman of the Banking Committee in the last Connecticut Legislature. He said that the bank fundamentally was in a sound position and
would reopen soon. The bank was incorporated in 1923 with a capital
of $200,000.
The Guaranty Trust Co. of New York announces the appointment of John J. Duryea and Joseph T. Meade as
Assistant Trust Officers.
_•___
Ralph B. Feagin, Vice-President of Electric Bond and
Share Co. and President of United Gas Corp. has been
elected a director of the Bank of America National Assn.
At the monthly luncheon of the Foreign Trade Club of
Newark,N.J., on Nov.25, A. N.Gentes, Assistant Manager
of the Foreign Department of the Guaranty Trust Co. of
New York, addressed the club on foreign credit and collections. His remarks had particular reference to the various
methods of financing export sales and conditions in the
principal markets of the world.
as an office of the Underwriters Trust Co. under the management of its present officers. The Underwriters Trust Co.
has a capital and surplus of $3,000,000 and the Union Bank
has a capital and surplus of $500,000.
Platt M. Conrad, for the last two years with Hallgarten
& Co., has joined the sales organization of the CentralIllinois Co., investment affiliate of Central Trust Co. of
Illinois, with headquarters in Chicago. An announcement
In the matter says:
sinum+ma•••
Coincident with the consolidation on Dec. 1 of the Franklin Trust and Nassau Offices of The Bank of America
National Assn. at 16 Court Street, it has been announced
that the Brooklyn Head office of the institution will be maintained at the latter location. The Franklin Trust office was,
for many years located at 166 Montague St., originally being
the Franklin Trust Co. Thirteen other offices of The Bank
of America in the borough are located as follows: 294 Livingston St., 41 Washington Ave., 131 Union St., 943 Third
Avenue,6323 14th Ave., Court Street, corner Schermerhorn,
395 Flatbush Avenue Extension, Cortelyou Road at East
16th St., 211 Fourth Ave., Thirteenth Avenue, corner 55th
St., 4924 Fourth Ave., 8524 Fifth Avenue, and Avenue U
at West 5th St., The full services of the bank are available
through each of these branches.
—4—
George V. McLaughlin, former Police Commissioner of
New York City and State Superintendent of Banks from
1920 to 1925,completed on Dec. 1 his third year as President
of the Brooklyn Trust Co. In the three years which have
elapsed since Mr. McLaughlin took office on Dec. 1 1927,
deposits are said to have more than doubled, capital funds
have been quadrupled, and the number of banking offices
has been increased from 5 to 31, a gain of 26. At the close
of business Nov. 28 1930, total resources of the company
were $203,407,000 against $71,829,000 three years ago, an
increase of $131,578,000; gross deposits were $133,668,000,
against $62,079,000, an increase of $71,588,000; while capital,
surplus and undivided profits were $31,527,000, against
$7,771,000, an increase of $23,756,000. During the period
four banks were acquired in mergers—the Bank of Coney
Island in January 1928, the Mechanics Bank in February
1929, and the Guardian National Bank and the State Bank
of Richmond County in January 1930. These mergers accounted for a portion of the growth in deposits, earning
assets and facilities, aggregate resources of the four banks
on the dates of acquisition having been about $85,000,000.
Announcement was made on Dec. 2 by Harry C. Thompson, President of the Prospect Trust Co. of Maplewood,
N. J., of his resignation as head of the institution, effective
Dec. 15, according to the Newark "News" of that date. The
Board of Directors of the bank, of which Mr. Thompson
will remain a member, will meet Dec. 15, when it is likely
Mr. Thompson's successor will be chosen, it was said. On
Oct. 1 Mr. Thompson became Manager of the insurance
auditor department of Stagg, Mather & Hough, public accountants, of New York City, and since his new position
has required much traveling, Mr. Thompson has decided
he cannot give the bank the time it requires, it was stated.
John A. Lawrence, President of the Bloomfield Savings
Institution, Bloomfield, N. J., and for more than 30 years
prominent in civic affairs in that town, died at his home in
Bloomfield on Nov. 30 after a prolonged illness. Mr.
Lawrence, who was 71 years of age, was born in Florida,
N. Y., but moved to Bloomfield as a young man. In 1881
he entered the wholesale dry goods firm of Edsall & Price in
Newark, N. J., the name of which was changed to Price &
Lawrence two years later when he became a partner in the
concern. He retired from the firm in 1924. Mr. Lawrence
was appointed President of the Bloomfield Savings Institution, the office he held at his death, in December 1926, and
previous to that time had been Vice-President for three years.
He had been a director of the institution for more than 25
years. Active in political circles, Mr. Lawrence was campaign Manager for the Essex County Republican Executive
Committee in 1923 and the following year was a candidate for
the nomination for freeholder. In 1923 he was recommended
for appointment to the New Jersey State Highway
Commission.
___4_
The proposed merger of the Colonial Trust Co.of Newark,
N. J., capitalized at $300,000, with the Lincoln National
Bank of that city, with capital of $600,000, was consummated on Nov. 29 under the title of the latter, with capital
The Brooklyn "Daily Eagle" of Nov. 28 reported the stock of $600,000. Reference was made to the approaching
following from Albany:
union of these banks in our issues of Oct. 4 and Nov. 22,
The State Banking Department announced to-day that the Superintend2170 and 3313, respectively.
page
and
property
the
business
of the East
ent of Banks had taken possession of
—4_
New York Savings and Loan Association, 2790 Fulton St., Brooklyn.
On May 21 the Superintendent certified that the association ''had
The First National Bank of Sewickley, Pa. (capital
abandoned and forfeited its charter by non-use and was in process of virtual $100,000) and the Union National Bank of the same place
liquidation." The statement to-day said the Superintendent had taken
over the business "for the purpose of liquidating same," under State Bank- (caital $100,000) were consolidated on Nov. 28 under the
ing laws.
title of the First National Bank of Sewickley, with capital
of $100,000.
The Central Fairfield Trust Co. of Norwalk, Conn., was
The Bankers Trust Co. of Philadelphia on Nov. 28 dissuspended on Monday of this week, Dec. 1, by order of
Lester E. Shippee, State Commissioner of Banking for Con- tributed $1,765,000 to the 32,250 members of its 1930
necticut, who said that the institution was in difficulties Christmas Club. This, it is said, is not only the largest
because of a heavy shrinkage in its commercial deposits, Christmas Club fund being distributed this year in Phila.
according to advices from Norwalk on that date to the delphia, representing as it does more than 8% of the total
New 'York "Herald Tribune." The action by Mr. Shippee of all Christmas funds being paid out for the year, but it
was said to have followed a recent examination of the insti- also greatly exceeds any Christmas Club previously distution by A. F. Austin, Chief Examiner of the State Banking tributed. Samuel H. Barker, President of Bankers Trust
Department. Checks totaling $30,000 to 750 members of the Co., in announcing the distribution, said:
The $1,765,000 that our Christmas Club members are receiving speaks
Christmas Savings Club operated by the bank, which were volumes
for the thrift and the inherent soundness of Philadelphia. In
received
the
day
the
bank
closed, have been 1929 the total Christmas Club funds distributed in Philadelphia were just
to have been
This year they will be close to 520.000.000. The total
$18.000.000.
over
held up. The dispatch went on to say:
Pennsylvania is 370.000.000;so that
After analyzing the assets of the bank, Mr. Shippee said he believed the
depositors were protected in every way, and that the suspension would be
temporary. He said the assets of the institution were $2,900,000 and the
deposits $2,359,000. The deposits were divided, he said, into $1,894,000
Philadelphia represents
for the State of
nearly one-third of the total.
Christmas
Club
to
be
even larger than this recordWe expect our 1931
breaking 1930 Club. Evidencing sound practice for those who wish to
become financially independent, many who are participating in this dis-
I,3654
FINANCIAL CHRONICLE
[VoL. 131.
tribution will open savings accounts with the money received—fresh
proof of Philadelphia's thrifty habits.
place, capitalized at $25,000 and $50,000, respectively, were
placed in voluntary liquidation. Both institutions have
The Skyesville National Bank, of Skyesville, Md., which been succeeded by the Bozeman Waters First National Bank
was absorbed by,the Central Trust Co. of Maryland at Fred- of Poseyville.
erick, Md., was placed in voluntary liquidation on Nov. 25.
Referring to the affairs of the Postal Station State Bank
The institution was capitalized at $75,000.
of Indianapolis, the closing of which was noted in our
Acquisition of the Citizens' Savings Bank of Upper Nov. 1 issue, page 2837, the Indianapolis "News" of Nov. 21
Sandusky, Ohio, by the First National Bank of Upper stated that Raymond D. Brown was appointed receiver for
Sandusky was announced on Nov. 24 by the officers of the institution by Judge William S. McMaster in the Superior
both institutions, according to a press dispatch from that Court on Nov. 20 under a bond of $50,000. Continuing, the
place on Nov. 25, appearing in the Toledo "Blade" for the paper mentioned said, in part:
same date, which, continuing, said:
The Postal Station State Bank, a subsidiary of the City Trust Co., was
The First National is one of the oldest financial institutions in the
United States. It was incorporated in 1863. The merged banks have
resources of $1,800,000, officials said.
closed by the State Banking Department Oct. 24, shortly after the City
Trust Co. had closed its doors. It had assets listed at the time of $415,913,
with deposits of $340,000. Examiners for the State Banking Department
testified in Judge McMaster's Court that the institution was insolvent at
the time of closing, and that its assets probably would show a shrinkage
of about $60,000. It had a capital of $25,000, surplus of $8,000, and
undivided profits of $6,000.
Stockholders of the City Trust & Savings Bank of Youngstown, Ohio, on Dec. 1 unanimously ratified a proposed purchase by the institution of the Youngstown State Bank and
Advices by the Associated Press from Chatham, Va., on
the Youngstown Savings Co. of that city, for $750,000, according to Youngstown advices on that date, printed in Dec. 1, printed in the New York "Times" of the following
the Cleveland "Plain Dealer" of Dec. 2, which went on day, reported that the Chatham Savings Bank of that place,
one of the oldest financial institutions in Pittsylvania
to say:
The State Banking Department has indicated its consent when all neces- County, had failed to open on that day, and a note pinned
sary legal steps have been taken.
on the door said the institution was closed by order of the
The bank proposes to set up a reserve fund equal to the capital and
undivided profits of these institutions for 18 months in order that this State Banking Department. The closed bank was capitalized at $100,000, the dispatch furthermore said.
fund will be available for any adjustments that may have to be made.
Directors and stockholders of the two banks to be purchased already have
signified their approval of the transaction and the City Trust will take
over the banks immediately. The offices at 18 East Federal Street will
be closed and all business of the two banks will be conducted in the
City Trust & Savings Banks.
The City Trust & Savings Think has resources of approximately $20,000,000.
With reference to the affairs of the Merchants Trust &
Savings Bank of Cleveland, Ohio, which, as noted in our
issue of Sept. 20, page 1823, was closed by the State Banking
Department on Sept. 15, the Cleveland "Plain Dealer" of
Nov. 30 stated that a meeting of the depositors of the institution has been called for Dec.8 to approve a reorganization plan worked out by a committee appointed two months
ago, according to an announcement the previous night
(Nov. 29) by James Metzenbaum, attorney for the committee. We quote furthermore from the Cleveland paper
as follows:
Details will not be made public until they are presented to the depositors,
Metzenbaum said.
"Any plan, whether liquidation or reorganization, will require the consent of the 22 surety companies, as well as the depositors, because the
surety companies will be required to repay 81,000,000 of public money on
deposit at the bank when it was closed," Metzenbaum said.
"At a meeting attended by hundreds of depositors about two months
ago a committee was appointed with instructions to work out some method
that would be helpful to the commercial and savings depositors," he explained.
"This committee was not named in a perfunctory manner. Each name
was subjected to most rigid inspection by the depositors themselves before being accepted.
"A committee of twelve was chosen with Ezra Shapiro as secretary.
"When the committee decided to name me as its counsel, I outlined a
Policy. insisting that all facts must be investigated before any plan was
suggested."
Metzenbaum said most of the plans submitted proposed that the depositors handle the liquidation of the bank themselves, rather than leave
It to Carnal A. Thompson, special agent of the State banking department,
assigned to the case.
That the Bank of Franklin, Franklin, N. 0., and the Citizens' Bank of the same place, had merged, forming a new
institution with resources of $600,000, was announced on
Nov. 28, according to a press dispatch from Franklin on that
date, printed in the Raleigh "News and Observer" of Nov. 30.
The new bank retains the title of the Bank of Franklin.
The directors of the two banks said that negotiations leading up to the consolidation had been going on since last
summer. The Bank of Franklin was capitalized at $50,000,
while the Citizens' Bank had a capital of $15,000. Dr. W.
A. Rogers is President of the new bank. Others officers
are: T. B. Higdon, First Vice-President; Sam L. Franks,
Second Vice-President; H. W. Cabe, Cashier, and W. T.
Moore, George Dean and L. B. Liner, Assistant Cashiers.
The Bank of Honea Path,
-Honea Path, S. C., an institution capitalized at $50,000, was placed in the hands of the
State Bank Examiner at the request of its directors on
Nov. 26, according to a dispatch by the Associated Press
from Honea Path on that date.
According to the Minneap- olis "Journal" of Nov. 25, a
third 10% dividend, amounting to $16,123.29, was declared
on the closed Farmers' & Merchants' State Bank of Newfolden, Minn., on that date, by A. J. Veigel, State Banking
Commissioner. This payment makes a total of 30% returned
to depositors since the bank closed June 1 1927, it was said.
On Nov. 10 the Commercial National Bank of Nowata,
Okla., capitalized at $50,000, went into voluntary liquidaThe Licking Bank & Trust Co. of Newark, Ohio, one of tion. It has been succeeded by the Commercial Bank of
the oldest financial institutions in Licking County, with Nowata.
present resources in excess of $4,000,000, has decided to
Effective Nov. 10, the First National Bank of Wood River,
affiliate with the Banco011io Corp. of Columbus, Ohio, ac- Neb., was placed in voluntary liquidation. The institution,
cording to advices on Nov. 25 from that city to the "Wall which was capitalized at $40,000, was taken over by the
Street Journal," which, continuing, said:
Farmers' State Bank of Wood River.
BancoOiaio Corp. affiliated independent banks now number 10, including
those In Columbus, Zanesville, Springfield, Chillicothe, Newark, and
Washington Court House, with aggregate resources of $100,000,000.
Milton Hinkley, formerly a Vice-President of the Farmers' & Merchants' National Bank of Benton Harbor, Mich.,
That the Sabina Bank, at Sabina, Ohio, would reopen on has been promoted to the Presidency of the institution, sucDec. 1 with a capital of $50,000 was reported in Associated ceeding the late C. M. Niles, who died recently, according
Press advices from Washington Court House, Ohio, on to the "Michigan Investor" of Nov. 22. At the same time,
Nov. 25. We quote furthermole from the dispatch as Vere Beckwith, Cashier of the bank for many years, was
advanced to a Vice-President to fill the office made vacant
follows:
The bank closed last July 1 because of frozen assets and heavy with- by Mr. FIinkley's promotion.
drawals, but it has been reorganized with all the new capital now paid in.
Depositors waived 20% of their deposits in order that the reorganization could be effected.
Two men were reported candidates for the Presidency, George Gray
and C. C. Bernard, while Raymond Cline was understood to be the only
candidate for Cashier.
The closing of the institution was reported in our issue
of July 19, page 396.
The Exchange National Bank of Pauls Valley, Okla., on
Sept. 16 1930 went into voluntary liquidation. The institution, which was capitalized at $50,000, was absorbed by
the Pauls Valley National Bank of the same place.
R. E. Donnell, President of the Liberty Bank & Trust Co.
of Nashville, Tenn., which closed its doors on Nov. 14,
Effective Nov. 22, the First National Bank of Poseyville, committed suicide on Nov. 27 in a Nashville hotel where
Ind., and the Bozeman Waters National Bank of the same he had engaged a room a few hours earlier. Mr. Donnell
DEC. 6 1930.]
FINANCIAL CHRONICLE
left no note assigning a reason for his act, but members of
his family, it is said, had been apprehensive that he might
take his life, following the closing of the institution which he
had founded and in which he had been the guiding spirit.
From the time the bank closed he had worked almost ceaselessly in an effort to reopen it and had been under a constant
nervous strain. The late banker, who for many years was
prominently identified with Nashville and Middle Tennessee
financial affairs, was born near Gallatin, Tenn., and began
his banking career when still a boy as a messenger in the First
National Bank of Gallatin. After remaining with the First
National Bank for six years, where he attained the office of
Assistant Cashier, he went to Nashville as Assistant Cashier
of the First National Bank of that city,and after several years
connection with that institution, organized the Cumberland
Valley National Bank, of which he was President for a time.
In 1911, he bought control of the State Bank & Trust Co.
of which he was President for several years, until he sold his
Interests to the Commerce Union Bank. At one time, he
controlled the Southern Insurance Co. The Liberty Bank
& Trust Co. of which he was President at his death was
organized three years ago. The late banker was also prominently interested in another Tennessee bank, the Bank of
Westmoreland. He was 63 years of age.
3.655
Directors said the bank would not be placed in the hands of the State
Banking Department. In order to relieve any apprehension in local banking circles they added a quarter million dollars in cash was sent here by
the Federal Reserve Bank.
Effective Nov. 24, the Arkansas National Bank of Fayetteville, Ark., and the First National Bank of that place
were consolidated under the name of the latter, with resources of approximately $3,000,000, according to Fayetteville advices, Nov. 28, to the "Wall Street Journal," which,
continuing, said:
A statement by Art T. Lewis, President, and Tom Hart, Cashier, said
that the First National Bank will assume the business of the two former
institutions. It will occupy the home of the First National Bank and
will also continue the First Savings Bank, which is owned by stockholders
in the merged institution.
Some months ago efforts were made unsuccessfully to merge the First
National Bank and the McIllroy Bank & Trust Co.
Officers of the Interstate Trust & Banking Co., of New
Orleans, La., and the New Orleans Bank & Trust Co. of
that city, on Dec. 2, announced the consolidation of the
institutions under the name of the former, according to
Associated Press advices from New Orleans on that date.
Lynn H. Dinkins, President of the Interstate Trust & Banking Co., continues as head of the enlarged bank, which will
have total resources of more than $20,000,000, it was stated.
With reference to the affairs of the Hargis Bank & Trust
Advices by the Associated Press from Gainsville, Tex.,
Co. of Jackson, Ky. (the failure of which the early part of on Nov. 29, appearing in the Houston "Post" of the same
the present year was reported in our issue of Feb. 22, page date, stated that the respective directors of the Lindsay
1224), advices from Jackson on Nov. 28 to the Louisville National Bank and the First National Bank, both of Gaines"Courier Journal" contained the following:
ville, had approved a proposed union of the institutions and
A. H. Hargis, former State Senator and President of the Hargis Bank &
that the stockholders of the banks would vote on the merger
Trust Co. here, which closed its doors last Feb. 6, was acquitted on a charge
Dec. 29. The banks, the dispatch
of receiving deposits after the bank was insolvent by a jury in a special at special meetings on
term of Breathitt Circuit Court here this afternoon.
went on to say, two of the largest and oldest in GainesMore than four days was spent in obtaining a jury and hearing of evidence
ville, have combined resources of more than $5,000,000.
was not started until nearly noon to-day (Nov. 28). Breathitt County
was
the
completed after
Commonwealth S. M. N. King is President of the Lindsay National Bank,
farmers made up the jury which
had used 11 of its challenges and the defense had used all but two. Special while D. T. Lacy heads the First National Bank.
Judge John Nolan, Richmond, presided.
No payments have been made to depositors since the closing of the bank,
according to counsel for Hargis. The bank's affairs are in charge of
J. Bryan Smith, Deputy Banking Commissioner.
As of Nov. 22, the First National Bank of Ireland, Tex.,
capitalized at $25,000, was placed in voluntary liquidation.
As stated in our previous item, the failed bank had com- The institution has been absorbed by the Gate.sville National
bined capital and surplus of $150,000 and resources of Bank of Gatesville, Tex.
$1,400,000.
Application to organize the Hollister National Bank of
of $100,000, was approved by
A banking institution which for many years was operated Hollister, Cal., with capital
on Nov. 25.
Currency
the
of
Comptroller
the
at Troy, Ala., under the title of W. B. Folmar & Sons, Bankers, has been transferred from Troy to Montgomery, Ala.,
A sum in excess of $6,500,000 was released by the Bank
and opened for business at 221 South Court Street, that city, of America National Trust & Savings Association (head
on Nov. 28, under the title of the Citizens' Bank & Trust Co., office San Francisco) on Nov. 26 from one end of the State
according to the Montgomery "Advertiser" of that date. to the other for the primary purpose of helping to tide some
M. B. Folmar, of Troy, is President of the institution, which 175,000 depositors over the Yuletide season. The accounts
has a paid-in capital of $50,000 and surplus of $20,000. The were in the Christmas Club of the bank, the deposits of
Vice-President and the Cashier of the bank, which will which are distributed each year about Dec. 1. An announceengage in a general banking business, are, respectively, ment in the matter by the bank says in part:
The introduction of this sizeable amount of new money into the holiday
J. W. Bowers and Curtis Flowers, both of Troy. The paper
trade is particularly welcome at this time, and is expected to furnish a
mentioned, continuing, said, in part:
to Christmas trading throughout California. The sum is
The bank, heretofore known as W. B. Folmar St Sons, Bankers, was
organized and began business in Troy on July 4 1895, and has ever since
been in continuous operation. This bank, now to be located in Montgomery
and bearing a new name is, as it has always been, owned and operated
by W. B. Folmar & Sons, the sons being Frank P. Folmar, M. C. Folmar,
If. B. Folmar, Emory Folmar, and Arthur Folmar.
The same organization, W. B. Folmar & Sons, also own and operate the
First National Life Insurance Co. of America, an Alabama company. The
Life Insurance Co. has for some time been quartered in the building at
221 South Court Street, where the bank will open this morning on the
ground floor. Everything was in readiness for the opening yesterday afternoon (Nov. 27). For the present the bank will occupy this location, but
later will move to other quarters further downtown, it is understood.
"We have moved our bank to Montgomery and are opening for business
here because we are confident that we can render a service to Montgomery
and Montgomerians," M. B. Folmar, President, said yesterday evening when
Interviewed concerning the transfer of the institution here from Troy,
"and we expect to further build this institution on the basis of service
to the people. There will be no charge by the Citizens' Bank & Trust Co.
on any account it handles, however large or small it may be."
The Central National Bank of Decatur, Ala. (capital
$200,000) went into voluntary liquidation on Nov. 6. The
Institution was absorbed by the First National Bank in
Decatur.
Directors of the Corinth Bank & Trust Co., Corinth, Miss.,
announced on Nov. 28 that they had closed the bank "temporarily" to go over its affairs and prepare for an increase
of $100,000 in its capital stock, according to an Associated
Press dispatch from that place on Nov. 28, printed in the
Cincinnati "Enquirer" of the following day, which furthermore said:
decided stimulus
proportionately divided among the communities in which the bank does
business, meaning that it will be generally distributed. The amounts
excess of
to be distributed in San Francisco and Los Angeles will run in
81.000.000 in each city, the San Francisco figure approaching 81.500.000.
A distinctive feature about the Christmas Club was the manner in which
the deposits were maintained throughout the year, despite the fact that
there were many more reasons for withdrawing the funds than would have
been the case in a normal year.
According to Associated Press advices from London the
directors of the Westminster Bank, one of the "big five"
British financial institutions, announced on Nov. 26 the
resignation of Robert Hugh Tennant from the Chairmanship
of the board. Rupert E.Beckett,it is stated,is his successor.
THE WEEK ON THE NEW YORK STOCK EXCHANGE.
Except for a moderate upward reaction on Tuesday, during which the copper stocks and steel shares enjoyed a brief •
period of buoyancy, the stock market has generally drifted
downward this week. Trading has been very dull and while
there have been some small gains from day to day, these
were usually among the less active stocks. The weekly
statement of the Federal Reserve Bank, made public after
the close of the market on Thursday, showed a further drop
of $11,000,000 in brokers' loans in this district. This is the
tenth successive decline in as many weeks, and brings the
total down to $2,111,000,000, and $4,693,000,000 below the
top record established on Oct. 2 1929. Call money renewed
at 2% on Monday and was unchanged at that rate throughout the week.
3656
FINANCIAL CHRONICLE
[VOL. 131.
Trading was dull and the market was decidedly irregular Electric dipped about 2 points. Prices continued their
during the two-hour trading period on Saturday. Toward downward drift on Friday and while there were occasional
the end of the session some moderate recoveries were re- rallies during the afternoon, the final quotations showed
corded, but the net changes were not especially noteworthy. practically no improvement. In the early trading, stocks
In the early transactions,considerable weakness was apparent were down from 1 to 5 or more points, the list including such
in the railroad group, though a number of the more active issues as United States Steel, American Tobacco B,Westingissues displayed strong recuperative powers and closed with house, General Electric and American Can. In the railroad
gains ranging from fractions to a point or more. United group, the outstanding weak stock was Central Railroad of
States Steel and American Can were down at the opening New Jersey, which tumbled down below 200 where it was
of the market, but improved as the day progressed. The off about 7 points on the day. Union Pacific, Southern
principal changes on the side of the advance were Allied Railway and St. Louis and San Francisco were off about 3
Chemical & Dye 2 points to 1983
%, American Water Works points each and Louisville & Nashville, Chicago Northwestern
pref. 2 points to 100, Eastman Kodak 2% points to 167, and Delaware, Lackawanna & Western were down around
1 Timken Roller Bearing 2 points. New York Central was at its lowest level
Sears, Roebuck 13
% points to 55%,
since
23 points to 473, and Worthington Pump 33 points to 1926 as it sold below 126. Some of the stronger specialties
80%. Other stocks showing moderate gains at the close showed slight improvement, Allis-Chalmers, for instance,
were Westinghouse, General Electric, J. I. Case Threshing closing with a gain of 13 points and Johns-Manville,
Machine, Ingersoll Rand, and Vanadium Steel. Merchan- which improved 2% points to 66%, but these advances
dising stocks were active, particularly Woolworth, which were comparatively few. The final tone was slightly stronger.
sold a point higher on a block of 15,400 shares, and R. H.
TRANSACTIONS AT THE NEW YORK STOCK EXCHANGE
Macy which registered a gain of over a point. Motor stocks
DAILY, WEEKLY AND YEARLY.
were generally down and so were the copper issues and
Stocks,
Railroad,
State,
United
Total
specialties.
Week Ended
Number of
&c.,
Municipal &
States
Bond
Dec. 5 1930.
Shares.
Bonds.
For'n Bonds.
Bonds.
Sales.
The market was again a dull affair during the forenoon
on Monday, but showed considerable improvement during Saturday
697,160 $3,446,000 $1,807,000
590,000 $5,343,000
Monday
1,107,507
4,481,500
2,968,000
2,378,000 9,827,500
the latter part of the day when many of the popular favorites Tuesday
1,579.620
5,186,000
2,712,000
246,750 8,144.750
Wednesday
1,217,460
4,627,000
2,524,500
104,000 7,265,500
advanced from 1 to 3 or more points. Some special issues Thursday
1,591,020
5,508,000
2.684,000
232.000 8.424,000
1,589,260
made larger gains, but there were comparatively few in Friday
6.896,000
2,069,000
220,000 9.185,000
this group. Pivotable stocks including United States Steel,
Westinghouse Electric, General Electric and American Can
Sales at
Week Ended Dec. 5..
Jan. 1 to Dec. 5.
New York Stock
all extended their gains and so did such stocks as American
Exchange.
1929.
1930.
1930.
1929.
Sugar, J. I. Case Threshing Machine Co., and United Cigar
of shares_
7,782,027 19,851,760
687,286,121 1,060,983,040
Co. Railroad shares had a particularly good day and many Stocks-No.
Bonds.
Government bonds__ $3.270,750 $3,579,000
$129,823,000
$103,674,100
issues among both the high and low-priced groups displayed State
& foreign bonds_ 14,764,500 17.200,000
611.493,650
658,766,900
good gains at the close. The list included among others, Railroad & misc. bonds 30,144,500 60,091,000 1,780,518,900
2,049,100,800
Atchison 2% points, Atlantic Coast Line 3 points, Baltimore
Total bonds
$48,179,750 $80,870,000 $2.542,959,900 52.790,417,450
& Ohio 2% points, Chesapeake & Ohio 1% points, MissouriDAILY TRANSACTIONS AT THE BOSTON. PHILADELPHIA AND
Kansas-Texas 2% points, New York Central 1% points
BALTIMORE EXCHANGES.
and Southern Pacific, New Haven and Illinois Central.
Boston.
Baltimore.
Philadelphia.
Copper shares were slightly higher, but the buying was down
Week Ended
Dec. 5 1930.
to the minimum. The market was somewhat stronger on
Shares. Bond Sales. Shares. Bond Sales. Shares. Bond Sales.
Tuesday following President Hoover's address to Congress, Saturday
11,589
$35.100 a21,560
534.600
$2,000
1,370
Monday
22,762
9,000 a29,043
23,000
2,327
53,500
and while few stocks made large gains, there were, through- Tuesday
26,773
14,000 a31.644
25,000
1,417
80,000
Wednesday
26,353
2,472
2,000 al9,260
17,500
80,075
out the list, numerous advances of 1 to 3 or more points. Thursday
25,420
10,200
2,746
7.000 a20,413
35,000
Some realizing was apparent in the late trading, but the Friday
11,777
3,032
6,000, 10.665
12,000
final quotations showed little further change. Railroad
TotaL
13,364
$73.100 132,585 1283.075
124.654
$89,700
stocks were mixed, a few stocks like New York Central, Prey, week revised 121,402 $41,500 198.731 5334,000 8.529 $36,100
Baltimore & Ohio, Delaware & Hudson and Louisville & a In addition,sales of warrants were: Monday,1.300; Tueeday,300; Wednesday
Nashville were up a point, while many other popular issues 300; Thursday, 400.
of the group were off from 3 to 5 or more points. Mack
Truck was the weak spot of the motor issues and dropped
THE CURB EXCHANGE.
about 4 points to 41, but later recovered to 44. General
Trading on the Curb Exchange this week was very quiet
Motors, Hudson, Nash, Chrysler and Peerless Motors were with prices moving in desultory fashion though they gradually
fractionally higher. Other trading favorites participating worked lower, to-day's market being particularly heavy.
in the advances included Allied Chemical & Dye 2 points, There were no decided changes though most of the losses were
Brooklyn Union Gas 3 points, Youngstown Sheet & Tube sustained by the industrials and miscellaneous issues.
5 points, American Can 1 point, United States Steel 2%
5 Aluminum Co. of America corn. after early advance of over
points, Texas & Pacific 4 points, International Business 5 points to 168% broke to 1632% and closed at 164. Aviation
Machine 5% points and Johns-Manville 2% points. The Corp. of America was strong,selling up from 2234 to 25 and
market drifted slowly downward to lower levels on Wednes- resting finally at 24%. Deere & Co. weakened from 49 to
day. Price movements were narrow and in the general list 47% and recovered finally to 48%. Fajardo Sugar sold to
ranged from fractions to a point or more. A few of the out- a new low of 38, down 2 points. Glen Alden Coal rose from
standing market leaders displayed larger gains, but these 59 to 62%, and sold finally at 62. Insull Utility Invest.
were not especially noteworthy. Auburn Auto was one of corn. weakened from 40% to 38%. Among utilities, Amer.
the most active stocks of the session and shot upward more & Foreign Power warrants, improved at first from 22 to 23,
than 3 points following the declaration of the regular cash then sold down to 20% and at 20% finally. Amer. Gas &
and stock dividends. Later in the day it dropped off but Elec. corn. advanced from 90 to 95%, reacting to 89 and
again forged ahead and closed with a net gain of 3 points closed to-day at 90%. Electric Bond & Share com, adat 853
%. United States Steel sold down more than a point vanced from 40% to 49%,receded to 44% and closed to-day
and other pivotal shares like American Can, Westinghouse, at 45%.
3
Oil stocks show few changes of moment. Humble
General Electric and American Tobacco were off from 1 to 2 Oil & Ry. improved from 68% to 69% and to-day dropped
points. Railroad shares failed to hold the advances of the to 68%, a new low record. Gulf Oil lost almost 3 points to
previous day and while fractional gains were occasionally 73%, though the close to-day was at 733/s.
recorded in a few unusually active stocks, most of the group
A complete record of Curb Exchange transactions for the
were below the preceding close. Thursday's prices on the week will be found on page 3692.
New York stock market were again lower, the losses ranging
DAILY TRANSACTIONS AT THE NEW YORK CURB EXCHANGE.
from 2 to 3 points. Substantial declines were recorded in the
railroad shares, especially Atchison, Reading and Louisville
Bonds (Par Value):
Stocks
& Nashville, all of which sold down from 3 or more points,
Week Ended
Foreign
(Number of
Dec. 5.
Total.
Shares).
Domestic. Corernment.
Rights.
while Delaware, Lackawanna & Western, Rock Island, New
5115.000 $2,014,000
Haven, Erie & St. Louis and San Francisco dropped over a Saturday
200 81.899.000
240.200
Monday
151,000 2,232,000
3,700 2,081,000
395.800
point. Merchandising and mail-order stocks were freely Tuesday
330.000 2,520,000
453,800
700 2.190,000
Wednesday
332.000 2.593.000
406,300
200 2.261,000
sold throughout the day, the declines averaging about 4 Thursday
353,000 2,601,000
475,200
1,600 2,248,000
198,003 2,923,000
509.900
2,100 2.725,000
points, while such pivotable industrials as United States Friday
Total
Steel, General Electric, American Can and Westinghouse
2.481,200
8.500 513.404.000 51,479,000 $14,883,000
TM.,
V '00 no,
/ .9n IAA cnn
CIA .1.2.1 rnn
.
en nnf, oven eAn lom pre,.
„
Due. 6 1930.]
3657
FINANCIAL CHRONICLE
1930.
Francs.
20,800
1,340
23,60
1,400
1,130
17,360
2,260
2,730
569
519
1,700
790
1,312
1,218
2,710
2,520
965
1,270
238
570
144
747
752
748
748
1,260
1,572
2,230
1,405
178
2,280
88.50
132.30
102.70
101.10
101.90
3,140
3,980
1,860
2,050
1,290
1,580
2,240
1,400
182
2,310
1,270
1,580
2,230
1,404
180
2,270
87.10
134.60
102.40
101.30
101.70
3,230
4,010
1,860
2,070
1,250
1,572
2,230
1,412
184
2,280
87.20
134.70
102.40
101.20
101.70
3.220
4,010
1.865
2,115
1930.
1930.
Francs. Francs.
20,400 20,600
Bank of France
1,330
-___
Banque Nationale de Credit
Banque de Paris et Pays Bas_ 2,320 2,330
1,370
____
Banque de Union Parisienne
1,110 1,130
Canadian Pacific
GOLD.
16,830
Suez
de
Canal
2,630 2,240
The Bank of England gold reserve against notes amounted to £158,- Cle Distr. d'Electricitie
previous
2,680
920.423 on the 12th inst. (as compared with £160,372,970 on the
Cie Generale d'Electricitle
540
Wednesday), and represents an increase of £12,960,339 since Jan. I last. Cie Cie Trans-Atiantique
545
616
Of the £816,000 bar gold which arrived from South Africa this week, Citroen B
available
was
£72,000
only
thus
£744,000 had been sold forward to France;
Nationale d'Escompte 1,670 1,680
Comptoir
790
780
in the open market yesterday, and this was secured by India and the home Coty, Inc
1,310
and Continental trade at the price of 858. id. per fine ounce. Withdrawals Courrieres
1,214
____
of gold on French account from the Bank of England have continued, and Credit Commerciale de France
2,680
movements at that Institution during the week show a net efflux of E1,017,- Credit Lyonnais
2,650
2,450 2,470
636. Receipts totaled £940,037, of which £940.000 was in sovereigns from Emu Lyonnais
950
Brazil, and withdrawals amounted to £1,957,673, consisting of £20,833 in Energle ElectrIque du Nord-. ____
1,270
____
sovereigns "set aside," £101,000 in sovereigns taken for export and £1,835.- Energle Electrique du Littoral
245
229
840 in bar gold; of the latter about £1,700,000 was for France after refining. Ford of France
535
545
The following were the United Kingdom imports and exports of gold regis- French Line
144
145
tered from mid-day on the 10th inst, to mid-day on the 17th inst.:
Gales Lafayette
Imports.
£1,000,000
Spain
1,007,869
Brazil
11,800
Venezuela
British South Africa.--- 967,420
41,907
British West Africa_ __ _
280
Other countries
Exports.
France
Germany
Switzerland
Spain
Austria
British India
Other countries
£3,029,276
United Kingdom imports and exports of gold for the month
last are detailed below:
Imports.
,
£12
Germany
Netherlands
30
11'rance
Switzerland
Austria
West Africa
119.466
84,000
Argentina, Uruguay and Paraguay
Other countries in South America
502,854
Union of South Africa (including Southwest Africa
Territory)
4,342.444
87,124
Rhodesia
British India
87.818
Straits Settlements
4,102,951
Australia
5,720
Other countries
£2,271,908
36,300
17.462
110,000
14.360
44,289
9,362
£2,503,671
of October
Exports.
£550,983
29.100
5,512,630
873,526
88,369
49,330
250
37,347
£9,332,419 £7,141,535
SILVER.
Silver quotations have shown little variation from those rullng last week.
Sellers showed some hesitation at first and, with China and the Indian
bazaars disposed to cover bear sales, prices made a slight recovery, 16%d.
and 16 Yid. for cash and two months delivery, respectively, being quoted
on the 15th inst. Thereafter China and America were more inclined to
sell and a slight reaction followed, but offerings were still offset to some
extent by purchases by the Indian bazaars. The tendency of both buyers
and sellers to limit orders as to price kept the market narrow. The premium
on cash silver was reduced from id.to 1-16d. on the 17th inst., but was reci. to-day. The following were the United Kingdom
established at
imports and exports of sliver registered from raid-day on the 10th inst.
to mid-day on the 17th inst.:
Exports.
Imports.
£158,765 Soviet Union (Russia)
£21.000
Mexico
British India
10,152
British West Africa
48,955
France
10.000
10,861
Australia
Other countries
3,251
Other countries
27,547
Kuhlmann
L'Air Liquide
740
1,220
Lyon (P. L. M.)
Nord Ity
Orleans Ry
Pathe Capital
Peehiney
Rentes 3%
Rentes 5% 1920
Rentes 4% 1917
Relates 5% 4915
Rentes 6% 1920
Royal Dutch
Saint Cobin, C.& C
Schneider & Cie
Societe Lyonnais
2:210
Societe Marsenialse
Tobin Artificial Silk, pref
Union d'Electricitie
Wagons-Llts
2,220
86.10
133.00
102.80
101.10
105.10
3,050
iiiii
Dec. 3 Dec.4 Dec. 5
Dec. 2
1930.
Francs.
20,900
1,350
2,380
13,90
1.140
17,250
2,270
2,740
559
544
1,690
790
1,320
1,218
2,720
2,520
977
1,270
240
357
145
Noe. 29 Dec.1
THE ENGLISH GOLD AND SILVER MARKETS.
We reprint the followirtg from the weekly circular of
Samuel Montagu & Co. of London, written under date of
Nov. 19 1930:
86.90
134.10
102.30
101.10
101.70
3,230
4.025
1,880
2,005
1930.
1930.
Francs. Francs,
20.800 20,600
1,345
6
2.390 2-3:3
1,400
1,110 1:18e
17,150
2,265
2,740 27.10
_iii
0
548
1.690
780
1,319
1,215
2,710
2,550
969
1,269
235
584
145
1,700
790
iitio
2,530
"255
662
148
737
1,250
726
2:-
2:260
86.70
134.80
102.20
101.10
101.60
3,210
_--------
-iia 1112 1.Stl ---'IN
L000 1,110 1,110 1.110 filo
860
364
362
860
--
Course of Bank Clearings
Bank clearings this week will again show a decrease as compared with a year ago. Preliminary figures compiled by us
based upon telegraphic adviees from the chief cities of the
country indicate that for the week ended to-day (Saturday,
Dec.6) bank exchanges for all the cities of the United States
from which it is possible to obtain weekly returns will fall
28.6% below those for the corresponding week last year.
Our preliminary total stands at $9,749,618,675, against $13,662,926,258 for the same week in 1929. At this centre there
is a loss for the five days ended Friday of 31.8%. Our comparative summary for the week follows:
Marine's-Returns by Telegraph.
Week Ending Dec.6.
New York
£182,168
£108,363 Chicago
No fresh Indian currency returns have come to hand.
Philadelphia
The stocks in Shanghai on the 15th inst. consisted of about 95,700,000 Boston
ounces in sycee. $149,000,000 and 3,740 silver bars, as compared with about Kansas City
and
3,720
silver
bars
$150,000,000
on
the
95,700,000 ounces in sycee.
St. Louis
8th inst. Quotations during the week:
SanFrancisco
-Bar Silver per or. std.- Bar Gold
Los Angeles
2 Months,
Cash.
Per Os. Fine, Pittsburgh
85s 5id.
Detroit
16 11-16d. 16 9-16d.
Nov. 13
9-16d.
16
85s. Id.
Cleveland
16 11-16d.
Nov. 14
5 0.
16.,
85s. Id.
Baltimore
16.4d.
Nov. 15
85s. 1)(d.
16 11-16d. 16%d.
New Orleans
Nov. 17
16d.
85s. ld.
16 9-16d.
Nov. 18
85s. Id.
1636d.
Twelve cities, 5 days
16'/ad.
Nov. 19
858. Id.
16.562d.
Other cities, 5 days
I6.667d.
Average
two
and
months'
delivery
are
cash
for
to-day
quotations
silver
The
Total all cities. 5 days
1-16d. above those fixed a week ago.
1 day
All cities,
Total all cities for week
1930.
1929.
Per
Cent.
$6,173.000.000 $7,589,000,000
639.989,922
472,875,092
618.000.000
410,000,000
491,000,000
353,000.000
115.867.945
97.409,706
136.300,000
100,600,000
179,528,000
148,538,000
Will no longer re port clearings.
162,033.511
160,944,294
160,758,755
121.244.767
123.791,279
96,707.750
87,383,165
95,008,055
63,651,105
49,524,117
-31.8
-26.1
-33.7
-28.1
-15.9
-26.2
-17.3
17,278,849,781 $10,367,303,682
1,079,122,315
-29.8
-21.6
$8,124,682,229 $11,446,425.997
2,216,500,261
1,624,936,446
-29.0
-26.7
39.749.618.876 113.662.926.258
-28.8
845,832,448
--0.7
-25.8
-21.9
+8.7
-22.2
PRICES ON BERLIN STOCK EXCHANGE.
Complete and exact details for the week covered by the
Closing quotations of representative stocks on the Berlin foregoing will appear in our issue of next week. We cannot
Stock Exchange as received by cable each day of the past furnish them to-day, inasmuch as the week ends to-day
week have been as follows:
the Saturday figures will not be available
Nov. Dec. Drc. Dee. Dec. Dec. (Saturday) and
5,
4.
3.
2.
1.
29.
until noon to-day. Accordingly, in the above the last day
Per Cent of Par---99
99
of the week had to be in all cases estimated.
98
97
99
99
Alt. Deutsche Credit(Adea)(8)
125 127 128 127 127 125
Berlin liendels Gee,(12)
In the elaborate detailed statement, however, which we
113
112
113
113
110
112
Commerz-und-Privat Bank (11)
153
153
155
150 164
153
further below we are able to give final and complete
present
Darmstadter U. Nationalbank (12)
111
111
112
111 111
110
Deutsche Bank u„ Disconto Geo.(10)
111
112
112
113
results for the week previous-the week ended Nov.29. For
110
111
Dresdner Bank (10)
219 225 227 233 232 229
Reichsbank (12)
that week there is a decrease of 29.8%, the aggregate of
65
65
67
65
64
63
A-Ifferrneine Kunstsilde Unie (Aku)(18)
106
107
108
106
107
105
Alig. Elektr. Gee.(A.E.G.) (9)
for the whole country being $7,194,022,954, against
clearings
78
77
77
78
75
Delius, he Ton- und Steluzeugwerke (11)
171
170I1 17031 170
in the same week of 1929. Outside of this
$10,243,098,427
171% 172
Ford Motor Co., Berlin (10)
87
87
88
7
85
86
Gelsenkirchen Bergwerk (8)
114
city there is a decrease of 26.7%, while the bank clearings at
115
114 117 115
112
Gesfuerel (10)
70
71
71
71
70
70
Hamburg-American Lines(Ming)(7)
this centre record a loss of 30.4%. We group the cities now
106
106
106
107
105
106
Hamburg Electric Co.(10)
49
50
44
47
45
to the Federal Reserve Districts in which they are
Hoyden Chemical (5)
according
81
83
82
81
82
82
HarPener Bergbau (6)
107 107 107
102 108
and from this it appears that in the New York Re104
located,
Hotelbetrieb (12)
133
134
135 136
134
133
I.0,Farben Indus.(Dye Trust)(14)
serve District, including this city, the totals show a shrinkage
117 118
Kali Chenile (7)
84
86
85
85
84
84
Karstadt (12)
of 30.3%,in the Boston Reserve District of 42.2%,and in the
70
71
71
69
71
70
Mannesmann Tubes (7)
71
72
71
72
72
71
Philadelphia Reserve District of 44.7%. In the Cleveland
North German Lloyd (8)
61
63
63
61
63
62
Phoenix Bergbau (6)4)
153
158
155
156
Reserve District the totals are smaller by 14.1%, in the
152
151
Polyphonwerke (20)
146
139
139
142
141
140
Rhein-Westf. Elektr. (R.W.E.) (10)
Richmond Reserve District by 0.2% and in the Atlanta Re78
79
79
77
78
77
Sachsonwerk Licht u. Kraft (754)
164
164
167
167
169 167
Siemens & Elaine (14)
District by 18.3%. In the Chicago Reserve District,
serve
65
Stoehr dr Co. KritOrOdaril Spinneret (5)
113
115
116 116 115
a loss of 26.9%, in the St. Louis Reserve District of
is
there
Leonhard nets (10)
66
66
65
65
65
Ver. Eitalhwerke (United Steel Works) (6) 65
28.7%, and in the Minneapolis Reserve District of 7.0%.
In the Kansas City Reserve District the decrease is 11.9%,
PRICES ON PARIS BOURSE.
in the Dallas Reserve District 33.3%, and in the San FranQuotations of representative stocks on the Paris Bourse cisco Reserve District 22.7%.
In the following we furnish a summary by Federal Reas received by cable each day of the past week have been
serve districts:
as follows:
3658
SUMMARY OF BANK CLEARINGS.
Week Ended Nov.29 1930.
1930.
1929.
Inc.or
Dec.
The volume of transactions in share properties on the
New York Stock Exchange each month since Jan. 1 for the
years 1927 to 1930 is indicated in the following:
1927.
1928.
Federal Reserve Mats
1st Boston ____12 cities
2nd New York_.11 "
3rd Phlladelpqa 10 "
4th Cleveland__ 8 "
5th Richmond . 6 "
6th Atlanta____13 "
7th Chicago ___20 "
8th St. Louis... 8 "
9th Minneapolis 7 "
10th KansasCity 12 "
11th Dalhui
5 "
12th San Fran_ _17 "
$
$
$
5
%
619,788,603
569,558,861
345,039,243
597,257,945 -42.2
4,625,079,927 6,634,725,410 -30.3 8,769,418,336 7,785,396,985
673,035,169
664,288,182
394,875,964
713,737,917 -44.7
388,341,146
436,962,304
315,462,217
369,117.384 -14.1
147,752,177
148,103,407 -0.2
161,769,867
218,998,575
213,729,734
118,613,806
145,160,045 -18.3
172,108,170
571,940,722
782,065.119 -26.9 1,024,151,656 1,020,826,357
248,041,416
131,517,873
194,404,855 -28.7
216,633,463
150,121,521
96,975,528
104,245,785 -7.0
125,086,450
207,985,546
146,105,512
164,664,948 -11.9
171,446,857
88,086,132
45,554,756
68,307,827 -33.3
85,026,967
435,473,537
256,105,229
331,307,785 -22.7
376,769,167
Total
129 cities
Outside N. Y. City
7,194,022,954 10,243,098,427 -29.8 12,633,346,099 12,089,696,892
2,691,814,843 3,774,288,183 -26.7 4,016,194,403 4,484,668,525
Canada
[vox,. 131.
FINANCIAL CHRONICLE
31 cltiot
012.205 201
454740 241 -20 2
050 220 596
1927.
1930.
1929.
1928.
No. Shares. No. Shares. No. Shares. No. Shares.
donth of January
February
March
56,919,395
47,009.070
84,973,869
62,308,290 110,805,940
67,834.100 77,968,730
96,552,040 105,661.570
1st quarter
34.275,410
44,162,496
49,211,663
226,694.430 294,436,240 188,902,334 127.649,569
Nonth of April
May
June
111,041,000
78.340,030
76.593,250
80,478,835
82,398,724
63,886,110
82,600,470
91,283,550
69,546,040
49,781,211
46.597,830
47,778,544
2nd quarter
265.974,280 243,430,060 226,763,669 144,157,585
Six months
492.668.710 537,866,300 415,666,003 271,807.154
222 476.755
donth of July
47,746,090
93,378,690
39,197,238
38,575.576
August
39,869,500 95,704,890 67,191,023 51,205,812
We also furnish to-day a summary by Federal Reserve
September
53,545,145 100,056,120 90,578,701 51.576,590
Districts of the clearings for the month of November. For
3rd quarter
141,160,735 289,139,700 196,966,962 141,357.978
that month there is a decrease for the entire body of clearing
houses of 43.7%, the 1930 aggregate of the clearings being vIonth of October
65,497,479 141,698,410 98,831,435 50,289,449
November
51.946.840 72 455 420 115 300 075 51 016.335
$36,283,772,152 and the 1929 aggregate $64,455,146,846.
In the New York Reserve District the totals show a diminuThe following compilation covers the clearings by months
tion of 48.2%,in the Boston Reserve District of 45.7% and in since Jan. 1 in 1930 and 1929:
the Philadelphia Reserve District of 44.0%. In the CleveMONTHLY CLEARINGS.
land Reserve District the totals are smaller by 21.5%, in the
Richmond Reserve District by 14.7% and in the Atlanta
Clearings, Total All.
Clearings Outside New York.
Reserve District by 28.4%. The Chicago Reserve District Month
1930.
1929.
1930.
1929.
%
%
suffers a loss of 37.3%, the St. Louis Reserve District of
29.0% and the Minneapolis Reserve District of 20.4%. In
$
$
$
$
Jan... 50,673,406,142 64,911,154,189 -22.0 18,642,101.592 21,007,488,319 -11.6
the Kansas City Reserve District the falling off is 17.8%, Feb._
. 41,702,901,982 53,632,530,040 -22.3 15,715,253,075 17,702,771,710 -11.8
in the Dallas Reserve District 30.8% and in the San Fran- Mar.. 51,189,572,673 62.047.728,610 -17.6 17.424,514,546
19,728,889,932 -12.3
cisco Reserve District 29.6%.
191 qu . 143565880,797 180591412,839 -20.5 51.781,869,213 58,439,149,961 -12.0
Federal Reserve Discs.
1st Boston ____14 cities
2nd New York__14 "
3rd Philadelp3a 14 "
4th Cleveland__15 "
5th Richmond _10 "
6th Atlanta____17 "
7th Chicago ___28 "
8th St. Louis...10 "
9th M1nneapol1s13 "
10th KansasCity 14 "
11th Dallas
11 "
12th San Fran 26 "
November
1930.
November
1929.
Inc.or
Dec.
November
1928.
November
1927.
$
1,806,235,012
22,779,264,829
1,908,975,880
1,534,083,722
726,609,380
614,837,463
2,997,592,207
719,881,196
490,328,952
902,922,669
410,274,749
1,342,766,093
$
3,327,800,067
43,967,891,979
3,411,706,069
2,016,758,880
860,673.052
858,925,386
4,781,402,410
1,014,100,224
616,306,357
1,098,519,134
593,296,922
1,907,765,866
%
-45.7
-48.2
-44.0
-21.5
-14.7
-28.4
-37.3
-240
-20.4
-17.8
-30.8
-29.6
5
2,510,979.379
36,456,354,969
2,756,901,711
1,908,209,662
819,259,612
884,978,471
4,831,078,911
1,058,212,918
667,252,354
1,122,121,505
627,560,634
1,873,953,857
5
2,795,249,931
28,761,331,831
2,566,709,067
1,752,132,878
889,057,132
946,250,942
4,318,544,212
1,047,558,840
687,233,181
1,116,040,001
603,341,606
1,810,094,373
Total
186 cities 36,283,772,152 64,455,146,846 -43.7 55,516,863,983 47,293,523,494
Outside N. Y. City
14,100,477,167 21,365,443,608 -34.0 19,801,124,796 19,208,284,205
April_ . 50,871,578.082 54,135,721,704 -6.3 17,335.439,550 19,138,168,300 -10.1
May... 48,698,222,344 55,855,905,534 -8.4 17,269,304,424 19,073,965,942 -9.6
June_ 49,749,859,458 52,965,219,206 -6.1 16,601,139.120 18,404,573,068 -9.7
20 qu • 149319659,884 162956846,444 -8.4 51,205,883,094 56,616,707,310 -9.6
6 mos. 292885540,681 343548259.283 -14.8 102987752.307 115055857,271 -10.8
July.. 47,058,160,251 60,605,800,494 -22.4 17,289,935,882 20,398,051,535 -15.3
Aug__ 38,909,873,288 59,060,466,344 -34.2 14,903,905,064 19,861,241,735 -25.0
Sept _ 40,456,400,858 58,131,474,579 -30.4 15,046,688,862 19,178,514,910 -21.6
3d au. 126 424 438 397 177797741,417 -28.9 47,240,529.808 59,437,808,180 -20.5
9 mos. 419 309 975078 521346000,700 -19.6 150228 282.115 174493665,451 -13.9
Oct_ _ _ 45,772,224,382 77,070,822,025 -40.6 16,888,265,460 22,870,703,124 -26.2
Nov _ _ 36.283.772.152 64.455.1462346 -43.7 14 100.477.167 21.395.443.608 -34.0
The course of bank clearings at leading cities of the country
for the month of November and since Jan. 1 in each of the
We append another table showing the c earings by Federal last four years is shown in the subjoined statements:
BANK CLEARINGS AT LEADING CITIES.
Reserve districts for the eleven months back to 1927:
to Nov. 29--Canada
29 cities
1.574.412.623 2.352.558.631 -33.1
11 Months
1930.
2238 126 ou
11 Months Dec. 11 Months
1929.
Inc.or
1928.
Federal Reserve Dists.
$
$
let Boston ____14 cities 23,924,866,024 28,712,452,084
2nd New York_.14 " 327,873,697,044 453,650,416,408
3rd Phlladelpla 14 " 25,938,880,801 30,891,601,271
4th Cleveland__15 " 19,339,872,955 22,662,858,083
5th Richmond .10 "
8,301,946,937 9,016,326,097
6th Atlanta....17 "
7,625,634,406 9,318,711,387
7th Chicago ......28 " 40,582.448,311 51,939,118,696
8th St. Louis-10 "
9,249,578,237 10,809,415,900
5,635,986,480 6,664,469,181
9th Minneapolis13 "
10th KansasCity 14 " 10,989,690,112 12,849,023,785
11th Dallas
11 "
4,931,906,598 6,332,051,833
12th San Fran__28 " 16,973,132,984 20,023,528,846
1 712 452 202
11 Months
1927.
$
5
%
-46.7 26,575,943,381 26,754,631,974
-27.9 360,370.327,641 296,782,754,742
-16.0 28,512,306,363 27,792,856,679
-14.7 20,702.250,065 20,105,995,718
-7.9 8,929,666,919 9,436,281,199
-18.2 9,194,921,093 10,121,675,768
-21.9 51,431,106,958 48,142,464,208
-14.4 10,837,615,679 10,706,094,680
-15.4 6,530,980,980 6,212,778,275
-14.6 12,583,187,427 12,142,104,627
-22.1 6,004,132,430 5,970,860,108
-15.2 19,946,347,635 18,179,918,178
186 cities 501,367,620,889 662,871,969,571 -24.4 562,618,786,561 92,348,416.156
Total
Outside N. Y. City
181,218,674,019 218,729,810,183 -17.1 210,109,442,070 203 024,225,146
Canada
29 cities 18.441.708.874 23.132.300384 -201 2828i inn 402 15 122 187 424
Our usual monthly detailed statement of transactions on
the New York Stock Exchange is appended. The results for
November and the eleven months of 1930 and 1929 are given
below:
Month of November.
Eleven Months.
Description.
1930.
1929.
Jan. 1
November
1928.
1929.
1930. 1929. 1928. 1927. 1930.
$
$
$ •
22,183 43,090 35,716 28,085 320,149 444,142 352.509
1,990 3,231 3,211 2,940 26,609 33,824 34,530
1,598 3,026 2,233 2,523 21,307 25,426 23.557
1,775 3,232 2,587 2,390 24,277 28,902 26,512
5,636 6,660 6,906
436
627
606
664
721
8,403 9,482 8,603
810
845
744
936 8,815 10,074 10,480
978
654
957
3,570
329 2,935 3,621
303
323
235
4,410 4,864 4,822
466
416
379
451
590 5,807 6,889 6,657
615
578
459
512 6,120 7,348 6,285
594
461
658
265
2.118
2,505
2,652
258
240
178
3,692 4,318
4,024
416
408
404
315
1,748
1,793
1,754
165
152
149
120
715 7,797 10,733 9,458
950
893
528
187
1,376
1,686
1,988
179
152
104
628
807
742
67
69
81
51
2,010
178
2,212 2,133
181
160
193
2,390 3,159 2,586
228
255
280
178
1,100
1,323
1,476
151
146
113
97
1,010
101
1,188
1,109
106
111
84
174
1,492
1,702
1,695
178
123
154
236
2,093 2,120 2,106
214
228
194
133
885
1,128
142
1,043
131
84
200
1,844
2,475 2,324
206
208
148
68
718
971
826
71
81
53
84
830
935
83
860
97
77
Total
Other cities
33,439 60,517 51,688 43,327 466,199 594,841 521,205 452,102
2,844 3,938 3,829 3,967 35,169 68,031 41,414 40,246
1927.
$
289,324
32,852
23,906
25,789
6,746
8,505
9,126
3,537
5,136
6,653
5,889
2,769
3,798
1,712
8,012
2,059
660
1,928
2,499
1,413
1,104
1,581
2,299
1,077
2,155
751
822
1929.
1930.
51,946,840 72,455,420
Stock, number of shares_
751,273,764 1,041,129,840
Railroad & misc. bonds_ _ $119,292,000 $207,615,000 51,753,819,900 $1,984,964,300
595,235.150
State, foreign, &c., bonds 59,938,500 66,110,000
644,908,900
6,575,600 15,468,000
126,656,800
917. S. Government bonds
100,493,350
Total bonds
(000,0005
omitted.)
New York
Chicago
Boston
Philadelphia
St. Louis
Pittsburgh
San Francisco
Cincinnati
Baltimore
Kansas City
Cleveland
New Orleans
Minneapolis
Louisville
Detroit
Milwaukee
Providence
Omaha
Buffalo
St. Paul
Indianapolis
Denver
Richmond
Memphis
Seattle
Hartford
Salt Lake City
$185,806,100 $289,193,000 $2,499,222,150 82,706,856,250
Total all
36,283 64,455 55,517 47,294 501,368 662,872 562,619 492,348
Outside N.Y. City 14,100 21,365 19,801 19,208 181,219 218,730 210,109 203,024
We now add our detailed statement showing the figures
for each city separately for November and since Jan. 1 for
two years and for the week ended Nov. 29 for four years:
CLEARINGS FOR NOVEMBER,SINCE JANUARY 1, AND FOR WEEK ENDING NOVEMBER
1930.
1929,
$
$
First Federal Rese rve District- BostonMe.-Bangor
2,621,531
3,939,390
Portland
12,713,216
18,287,314
Mass.-Boston
1,597,886,584 3,026,281,505
Fall River
4,899,860
6,575,934
Holyoke
3,608,724
2,948.698
Lowell
2,665,429
5,499,749
New Bedford
6,208,665
4,792,095
Springfield
1,223,925
25,593,087
Worcester
16,111,741
11,707,727
Conn.-Hartford _ _._
53,123,750
81,191,650
New Haven
28,335,600
38,321,185
Waterbury
8,315,200
11,758,000
R. 0.-Providence_ _ _
80,889,400
50,716,300
N. 25.-Manchester
3.533.723
6,285,097
Total(14 cities)._
Week Ended November 29.
Eleven Months Ended November 30.
Month of November.
Clearings atInc. or
Dec.
1930.
1929.
Inc. or
Dec.
%
$
3
%
1930.
1929.
Inc. or
Dec.
1928.
$
$
%
$
32,864.017 -3.7
31,633,307
-33.5
204,897,811 -11.0
182,260,943
-30.5
-47.2 21,307.854,960 25,425,747,878 -16.2
64,297,045 -18.3
52,533,754
-25.5
30,957,138 -10.2
27,803,157
-18.3
59,944,967 -40.4
35,698,090
-51.5
60,353,422 -19.0
48,878,599
-22.8
221.953,555
276,345,083 -19.7
-24.9
160,609,560
180.892,785 -11.2
-27.3
717,700,855
970,932,407 -26.1
-34.6
371,917,571
436,329,469 -14.8
-26.1
102,489,100
126,182 100 -18.8
-29.3
628,009,500
807,096,600 -22.2
-37.3
35,523,073
35,611,162 -0.2
+77.9
488,580
2,377,778
305,676,521
811,820
476,802 +2.5
3,455,155 -31.2
553,000,000 -44.7
983,331 -17.4
390,550
735,005
3,337.266
2,199,775
10,770,292
5,287,048
909,471 -57.05
702,007 +4.7
3,720,076 -10.3
2,635,530 -16.5
12,502,593 -14.5
6,446,264 -18.0
9,195,100
3,769,508
1,806,235.012 3,327.800,067 -45.7 23,924,866,024 28,712,452,084 -45.7
345,039,243
29.
1927.
S
509,525
4,142,980
515,000,000
1,169,998
819,720
4,519,053
554,000,000
2,145,602
1,036,495
1,036,665
5,444,322
3,037,143
16,553,149
7,289,748
1,281,868
1,244,337
6,163,234
3,634,293
18,588,850
9,037,423
11,628,400 -20.9
708,316 +432.2
13,560,900
777,536
16,602,100
1.750,033
597,257,945 -42.2
569,558,861
619,786,603
•
3659
FINANCIAL CHRONICLE
DEC. 6 1930.]
CLEA RINGS-(Continued.)
W.C4
Month of November.
Clearings at1930.
1929.
S
3
Second Federal Re serve District-NewYork28,269,105
27,318,376
'. Y.-Albany
6,548,310
4,697,188
Binghamton
280,099,490
178,219,162
Buffalo
3,738,700
4,425,738
Elmira
5,926,114
4,295.552
Jamestown
22,183,294.985 43,089,703,238
New York
5,578,857
4,829,235
Niagara Falls
67,030,058
41,344,874
Rochester
31.372,697
24,740,999
Syracuse
20,666,389
14,327,394
:onn.-Stanaferd
4,551,237
2,869,101
T. J.-Montclair_
172,851,218
132,057,309
Newark
242,939,057
150,154.699
Northern N J
8,617,500
6,690,217
Oranges
Total(14 cities)
Week Ended November 29.
Eleven Months Ended November 30.
Inc. or
Dec.
%
1930.
3
1929.
Inc. or
Dec.
1930.
1929.
Inc. Or
Dec.
192S.
1927.
%
$
$
%
S
$
$
304,209,737
321,920,901
-3.4
72,052,150
65,137,094
-28.3
3,159,261,748
2,390,191,887
-38.4
55,324,279
45,820,172
+18.4
65,672,672
57,321,318
-27.5
-48.5 320.148.946.870 444,142.159.388
73,430,316
53,394,174
-13.4
787,971,304
549,623,892
-38.3
361,864,353
266,156,123
-21.3
222,181,479
189,809,529
-30.7
46,015.362
36,955,151
-37.0
-23.6 1,621,724,207 1,701,806,539
-38.2 2,046,478,132 2,570.531,221
87,925,860
79,917,594
-22.4
4,831,310
5,022,594
-5.8
1,270,929
846,381
-9.6
47,725,415
37,564,066
-24.3
659,018
829,584
-17.2
1,140,795
723,350
-12.7
-27.9 4.502,108,111 8,468,810,244
-27.3
10,411,162
7,477,180
-30.2
4,920,547
4,175,325
-26.4
4,130,399
3,571,589
-14.2
763,298
574,337
-19.7
34,503,730
28,377,842
-4.7
55,558,533
35,509,568
-20.4
-9.1
6,913,685
5,891,644
+4.0
1,123,700
1.107.510
-33.4
62,011,944
49,799.287
-21.3
997,247 ,
1.026,349
+25.9
1.258,645
986,770
-36.6
-30.4 8,617,151,696 7,605,028,366
15,721,419
7,645,256
3.065,280
1,331,688
31,165,427
48,831,328
13,251,572
5,242,041
4,326,757
847,750
28,678,316
41,108,644
-28.2
-15.1
-13.5
-24.8
-23.4
-36.1
4,625,079,927 6,631,725,110 -30.3 8,789,418,336 7,785,396,985
22,779,264,829 43,967,891.989 -48.2 327,873,697,044 454,650,416,408 -27.9
Third Federal Res erve District -Philadelph la72,826,233 -12.6
63,685,720
6,188,854 -10.1
5,004,472
'a.-Altoona
256,911,433 -19.4
207,073,381
21,588,287 -30.5
*15,000,000
Bethlehem
-15.8
68,904,561
49,612,287
-22.1
5,006,732
3,900,331
Chester
226,382,921 -9.9
203,860,771
22.4
20,188,709
15,664.671
Harrisburg
101,223,393 -9.0
92,115,042
7,151,614
8,913,477 -19.8
Lancaster
32,403,470 -8.0
19.1
32,135,835
2,853,978
2.308,951
Lebanon
43,737,071 -18.8
35,635,704
36.6
1,690,680
2,075,312
Norristown
-16.0
28,902,000,000
24,277,000,000
-45.1
1,775,000,000
3,232,000.000
Philadelphia
-21.1
208,307.427
164.369,499
18,423,907 -30.1
12.849.743
Reading
312,867,252 -27.9
225.667,745
18,520.775
30,938,217 -40.1
Scranton
-14.0
190,087,264
163,383,834
-17.3
17,197,961
14,225,319
Wilkes-Barre
104,474,609 -7.7
96,453,680
8,538,473 -0.4
8,504,692
York
122,408,571 -11.7
108,040,203
11,428,794 -11.2
10,153,000
.J.-Camden
259,066,066 -22.8
199,927,000
23,748,000 -25.4
17,717,000
Trenton
-16.0
1,908,975,880 3,411,706,069 -44.0 25,938,860,801 30,891,601.271
Total(14 cities)
1,165,359 -18.6
4,050,589 -4.5
849,182 -16.3
1,482.484
4,779,070
1,039,442
1,605,439
4,758,160
1,293,481
1,412,174
1,539,851
-8.3
1,541,387
1,947,351
375,000,000
2,447,877
3,456,294
2,513,491
1,512,951
688,000,000
3,413.159
5,259,796
3,013,177
1,586,200
-45.5
-28.3
-34.3
-16.9
-4.6
545,000,000
4,132,526
5,197,949
3,675,512
1,717,277
630,000,000
4,782,700
6,722,415
4,000,350
1,985,474
3,007,000
4,860,301 -38.1
1,469,522
7,192,809
394,875,964
713,737,917 -44.7
573.035,169
664,288,182
-31.3
-17.0
-18.9
-16.7
-12.6
-24.0
-23.5
-14.9
-19.8
-21.6
-17.6
-19.6
-10.4
-22.6
-19.8
3,568,000
• 2,680,469
48,280,000
92,594,806
11,463,900
4,461,000
3,395,817
58,196,000
121,892.288
13,344,400
-20.1
-21.6
-15.6
-24.0
-14.1
6.814,000
3,393,643
63,214,894
120,409,930
14,776,100
6,250,000
3,603,417
82,104,643
133,587,963
18,802,800
1,438,598 -20.9
4,837,257 -20.9
1,421,188
5,169.981
1,659,562
5,822,531
151,911,173
163,549,021
-7.1
173,111.410
185.131,388
1,684,083.722 2,016,758,880 -21.5 19,339,872,955 22,662,858,083 -14.7
315,462,217
369,117,384 -14.1
388,341,146
436,962,304
981,864 -10.0
4,361,478 -22.3
44,801,000 -3.6
1,115,195
5,091,593
44,730,000
1,596.915
8,393,104
58,200,000
Fourth Federal Re serve District -Cleveland22,420,000
)hio-Akron
16,874,000
20,864,980
Canton
14,696,607
323,266,854
234,610,230
Cincinnati
658,011,028
460,791,662
Cleveland
74,248,500
56,896,800
Columbus
4,4133,335
3,013,647
Hamilton
2,112,887
1,491,763
Lorain
8,951,251
6,256,855
Mansfield
23.018,042
17,985.612
Youngstown
2,321,405
1,553,084
'5.-Beaver Co
936,579
693,878
Franklin
3,681,714
4,806,395
Greensburg
845,184,101
743.942,556
Pittsburgh
6,269,017
5,485,344
Ky.-Lexington
21.009,187
14.985.289
V. Va.-Wheeling _ _ _
Total(15 cities)
948,284
3,866,523
711,370
Fifth Federal Rose rye Distret- Richmond5,356,839
4,267,282
A. Va.-Huntington_
21,483,911
15,601.579
Ta.-Norfolk
227,688,000
193,637,011
Richmond
10,078,158
10,095,268
5. C.-Raleigh
9,104,831
9,599,896
I. C.-Charleston.
9,669,529
8,364,825
Columbia
450,675,065
378,766,931
1d.-Baltimore
2,004,036
1,868,897
Frederick
3,450,905
2,377,303
Hagerstown
120,261.738
102,030,388
3.C-Washington
-24.7
-29.6
-27.4
-30.0
-23.4
-32.5
-29.4
-30.1
-21.9
-33.1
-25.9
+30.5
-12.0
-12.5
-28.7
226,387,000
194,161,364
2,935,339,832
6,119,862,358
729,148,900
44,302,015
17,170,155
86.627.857
243,112.312
21,487,365
8,631,111
57,280,903
8,403,312.723
74,828,948
178,220,222
329,609.000
233,964,901
3,621,035,612
7,348,320,868
834,329,800
58,329,849
22,446,280
101,731,600
302,969,674
27.601,871
10,474,630
71,384,671
9,381,652,210
96,871,376
222.336,743
1.137,584
3,826,285
51,295,987
191,950,353
2,093,011,451
105,009.896
101,323,973
98,187,195
1,109,572,532
22,561,253
28.999,774
1,200,034,523
56,827,077 -9.7
223,333,034 -14.1
2,120,293,333 -1.3
114,058,954 -7.9
104,945,205 -3.4
8.4
107,174,907
4,864,347,179 -9.3
22,584,330 -0.1
22.6
37.445,929
1,365,316,099 -12.1
896,375
3,388,825
43,227,888
8,301,946.937
9,016,326,097
-7.9
-21.2
-19.6
-34.9
-29.5
-39.0
-33.5
-15.4
-37.7
-14.3
-34.7
-16.3
-52.8
-14.6
-0.4
-33.8
-36.9
-25.9
132,741,364
1,006,306,601
2,070,432,000
82.702,856
44,707,063
66.835,407
627,109,513
115,300,000
80,802,164
935,237,978
88,931,500
52,125,365
66,094.000
97,875,108
31,446,046
9,088,778
2.117.898,662
147,307,018
1,140,707,110
2,716,359,701
104,386,864
57,958,774
83,083,941
713,579,355
129,740,000
127,041,001
1,170,710.832
100,050.079
81,483,363
79,449,000
103,319,176
41,841,077
16,388,845
2,505,305.251
-9.9
-11.8
-23.8
-20.8
-22.9
-10.6
-12.1
-11.1
-38.4
-20.1
-11.1
-36.0
-16.8
-5.3
-24.8
-44.5
-15.5
127,884
38.810,905
858,925,386 -28.4
7,625,634,406
9,318,711,387 -18.2
118,613,806
-27.8
-16.5
-27.4
-33.7
-24.9
-55.1
-14.0
-20.2,
-13.5
-15.0
-19.3
-6.6
-14.8
-18.4
-19.4
-4.7
-3.1
-16.0
-5.5
-16.2
-13.8
-19.8
-10.4
-21.3
-7.0
-23.9
-23.6
-8.4
129,502
733,798
110,150.860
1,167,007
390,984,971
837,229
2,978,491
2,081,009
1,826,729
1,357,178
531,387,321
1,093,589
4,961.880
2,019,564
2,075,731
Total(28 cities).--- 2,997,592,207 4,781.402.410 -37.3 0,582,448,311 81,939,118,696 -21.9
571,940,722
782,065,119 -26.91,024.151.6561,020,856.357
Total(10 cities)....
726,609,380
-20.3
-27.4
-15.0
-8.0
+5.4
-13.5
-15.6
-6.7
-31.1
-15.2
860,673,052 -14.7
Sixth Federal Rese rve District- Atlanta12,685,000
*10,000,000
Conn.-Knoxville__ _ _
99,468.128
79,944,106
Nashville
262,560,941
170,864,342
3a.-Atlanta
10,536,674
7,128,287
Augusta
5,433,856
3,316,194
Columbus
7,397,687
4,855,842
Macon
55,585,422
47,024,954
Fla.-Jacksonville _
10,601,000
6,607,000
Miami
7,528,121
6,452,000
Tampa
109,534,995
71,491.890
Ala.-Birmingham._
9,744,248
8,154,50
Mobile
8,720,671
4,112,978
Montgomery
5,802,000
4,953,000
Miss.-Hattiesburg_ _
8,897,244
8,860.379
Jackson
3,512,350
2,326,579
Meridian
1,168,507
737,197
Vicksburg
239,848,642
177,708,167
La.-New Orleans...
Total(17 cities)._ _ _
614,837,483
Seventh Federal R eserve Distric t-Chicago1,904,399
759,250
Mich.-Adrian
1,142,558
3,339,327
Ann Arbor
892,688,131
528,323,625
Detroit
16,006,435
9,228,302
Flint
27,393,856
21,664.362
Grand Rapids
7,791,574
2,898,916
Jackson
14,987.604
11,387,941
Lansing
18,707,104
13,431,204
Ind.-Ft. Wayne_ __ _
24,541.512
18,328,338
Gary
110,729.000
84,306,000
Indianapolis
13,396,120
10,583,547
South Bend
24,650,011
19,616,002
Terre Haute
11,669,879
9,894,632
Wis.-Madison
151,872,629
103,725,475
Milwaukee
4,026,297
3.045,532
Oshkosh
12,920,260
12,098,502
Iowa-Cedar Rapids_
59,031,113
46,144 816
Davenport
49.935,359
28,642,796
Des Moines
1,917.951
1,999,158
Iowa City
26.418,273
20,976,665
City
Sioux
6,591,186
5,246,429
Waterloo
5,236,367
3,937,509
Illinois-Aurora
7,357,178
6,440,499
Bloomington
1,990,081,124 3,230,866,053
Chicago
5,219,049
4,337,636
Decatur
24,454,501
16,074,246
Peoria
16,384,110
11,036,888
Rockford
11,143,001
9,984,488
Springfield
Eighth Federal Re serve District -Sc. Louis20,405,890
20,318,343
Ind.-Evansville
702,405
649,609
New Albany
605,661,866
438.059,094
.Mo.-St. Louis
148,715,856
120,096,358
Ky.-Loutsvffle
1,692,963
1,360,694
Owensboro
12,128,798
9,126,357
Paducah
130.628,185
84,137,623
Tenn.-Memphis- - -86,279,695
43,939.407
Ark.-Little Rock...
1,737,086
681,394
III.-Jacksonville___ .
6,147,978
3,512,317
Quincy
Total(10 cities)......
-30.6
13,741,866
9,923.014
-24.8
50,734,797
42,368,443
-40.8 7,797,017,701 10,733.065,792
137,245,639
-42.3
207,007,543
-20.9
364,010,906
273,382,395
-62.8
97,876,501
63,986,083
190,459,741
-24.0
163,807,622
-28.2
192,118,252
153.381,989
-25.3
272,740,500
235,873,330
-23.9 1,009,893,000 1,187,931.000
-21.0
153,922,806
124,271,30)
-20.4
259,494,45
212,248,4S.
-14.5
148,169,98
1213.495,292
-31.7 1,375,719.231 1,686,133,94
-24.4
15,940,28
37,046.890
-6.4
152,877,50
145,709,703
-21.8
609,501,48
590,444,112
-42.6
484,493,10
407,096,767
+4.2
23,524,048
22,229,872
335,133,115
-20.7
280,685,944
-20.4
77,356,011
66,643,808
-24.8
61,708,707
40,507,168
-12.5
95,717,917
85,718,591
-38.4 26,608,636,628 33,823.513,309
-16.9
61 717.468
57,405,002
-34.3
286,210,942
217,864,409
-32.3
189,913,402
145,100,923
-10.4
133,796,322
122,564,943
-0.5
-7.5
-28.0
-19.2
-19.6
-24.8
-35.6
-49.1
-60.8
-42.9
719,881,196 1,014,100,724 -29.0
219,167,306
7,614,538
5,635,864,272
1,747,768,042
18,523,900
98,476,669
885,097,273
568,838,319
9,840,530
58,387,359
255,945,319
8.760,515
6,660,470,011
1,792,928,574
19,081.202
120,000,462
1,127,893,252
732,674,470
19,207,305
72,454,790
-14.4
-13.1
-15.4
-2.5
-2.9
-17.9
-21.5
-22.4
-48.8
-19.4
9,249,578.237 10.809,415,900 -14.4
1,304,016 +29.0
2,067,929
2,219,692
76,640,534
+2.5
-
84,230,036
120,613,931
19,904,645
20.011,515
-0.5
24,535.111
27,974,633
147,752,177
148,103.407
-0.2
161,769,867
218,998,575
*1,500,000
14,205,248
34,504,223
1,480,672
1,987,775
16,779,111
42,890,028
1,786,087
-24.5
-15.3
-19.6
-17.1
2,414.375
19,478,412
50,457,837
1,913.209
3,330,792
23,296,064
60,495,223
1.974,759
851,434
10,032,296
1,255,000
1,326,825 -35.8
10,774,870 -6.9
2,097,000 -40.2
2,800,000
12,855,270
1,900,000
2,223.287
16,950,680
3,808,000
14,826,319
1,593,448
19,950,921 -25.7
1,651,389 -3.5
21,318.048
2,396.140
28.408,318
1,633,250
-2.0
1,514.000
1,659,000
197,429 -35.2
44,263,895 -16.9
516,436
54,544,443
385,964
69,564,397
145,160,045 -18.3
172,108,170
213.729,734
176,390 -26.6
786,361 -6.7
158,807,909 -30.6
176,013
991,604
205,134,566
238,353
1,130,316
168,551,566
1,785,610
78,548,834
1,426,379
1,451,735
4,055,508
5,007,262 -19.0
7,906,199
8,169.094
2,624,785
2.117,453
2,411,317 +4.7
3,026,752 -20.1
2,710,052
3,123,649
2,481,982
3,835,346
14,552,000
1,577,385
3,912,869
19,116,000 -23.9
1,891,517 -16.6
4,552,331 -14.0
19,675,000
2,538,100
4,167,076
23,118,000
2,823,900
5,187,793
19,231,536
26,021,588 -26.1
35,803,791
45,312,513
2,846,173
2,516,211
+5.2
2,387,810
2,980,290
5,268,583
7,693,060 -31.5
7,469,242
10,611,234
3,771,762
885,066
4,996,043 -25.0
1,207,115 -26.7
1,995,993
1,195.169
5,821,534
1,245.592
-14.0
-26.4
-23.4
-40.0
-28.7
-12.0
1,579,509
712,288,816
1,370,639
1,673.170
3,383,682
2,281,576
1,680,163
724,750,014
1,254,048
5,171,437
3,913,091
2,520,061
4,168,075
3,631.714 +14.8
4,742,935
5,993,682
87,000,000
17,613,414
334,407
114,000,000 -23.7
26,759,656 -34.2
433,478 -22.9
130,400,000
30,316,165
318,301
152,500,000
39.139.736
395,783
-35.0
-47.4
-50.7
-53.3
32,805,464
16,502,310
299,738
1,198,540
30,906,625
17,250,929
358,495
. 1,196,168
184,404,855 -28.7
216,633,453
248,041,416
„____.
14,940,127
6,820,991
141,272
499,584
131,517,873
22,248,209
12,975,302
286,001
1.070,495
3660
FINANCIAL CHRONICLE
[VOL. 131.
CLEARINGS-(Concluded)
Month of November.
Clearings at-
1930.
Eleven Months Ended November 30.
Inc.or
Dec.
1929.
1930.
1929.
Inc.or
Dec.
S
$
%
Week Ended November 29.
1930.
1929.
Inc. or
Dec.
1928.
$
$
%
$
1927.
L i
$
$
%
Ninth Federal Res erre District -Minneapoll sMinn.-Duluth
28,731.830
32,884,890 -12.6
Minneapolis
314,874.668
403,860,742 -22.0
Rochester
2,288,858
2,984,272 -23.3
St. Paul
96,986.518
112,902,044 -14.1
N. Dak.-Fargo
6,954.150
9,977.493 -30.3
Grand Forks
7,136.000
9,087,000 -21.5
Minot
1,566,000
2,280,577 -31.3
S. Dak.-Aberdeen4,307,626
5.771,660 -25.4
/ Sioux Falls
7,067,288
7,685,434 -8.0
Mont.-Billings
3.081,742
3,566,789 -13.6
Great Falls
3,906,512
6,599,119 -40.8
Helena
13,068,464
17,962,554 -27.2
Lewistown
359,296
743,783 -51.7
,
Total(13 cities)
490,328,952
616,306.357 -20.4
256,975,544
3.692,184,664
27,620,491
1,100,514,654
94,050.381
76,934,000
18,563,266
48,541.054
91,274,856
30,216,756
50,208,925
143,792,730
5,109,159
359.054,436
4,318.392,712
30,072.957
1,322,698.819
101,301.874
79,153.000
23,853.312
58,385,811
91.666,492
35,584.193
66,927.302
171,896,264
7,182,009
-28.4
-14.5
-8.2
-16.8
-7.1
-2.8
-22.2
-16.9
-0.4
-15.1
-25.0
-16.3
-28.9
5,343,303
68.031,614
4,470.772 +19.5
71,368,059 -4.7
9,457,717
79,262,181
10,534,133
96,206,294
17,600,514
1,618,819
21,293,083 -17.3
1,977,493 -18.1
29,137,587
1.774,252
35,128,903
2,097,792
914,744
1,300,000 -29.6
1,237,376
1,438,402
5,635,986,480
Tenth Federal Res erre District -Kansas Cit yNeb.-Fremont
1,021,089
1,322,101 -22.8
Hastings
1,817,225
1,985,951 -8.5
Lincoln
12,667,824
14,526.585 -12.8
Omaha
159,803,716
192,710.617 -17.1
Kan.-Kansas City
8,350,724
9,074,999 -8.0
Topeka
12,0J6,454
12,611,357 -4.8
Wichita
25,654.504
31,630,216 -18.9
Missouri-Joplin
2,731,803
6,000,000 -54.5
Kansas City
459,218,601
615.028.155 -25.3
St. Joseph
19,956,000
25,638,000 -22.2
Okla.-Tuisa
34,756,025
51,188,022 -32.1
Col.-Col. Springs
4,424,997
5,821,067 -24.0
Denver
154,466,707
123,329,212 +25.3
Pueblo
6,047.000
7,652,852 -21.0
14,978,926
24,112,209
161,980,910
2,010,014,735
99,965,244
155.628,951
337,291,068
44,553,728
5,806,750,368
261,199,455
451,828,282
56,643.552
1,491,758,148
72,984,536
Total(14 cities)
Total(11 cities)
624.534
686,378
-0.9
717.337
817,397
2,842,000
3,150,000
-9.8
3,500.000
3,898,000
6,664,469,181 -15.4
96,975.528
104.245,785
-7.0
125,086,450
150,121,521
18,330,923
27,879.976
193,347.077
2,212,135,054
104,872,455
173.339,787
405,980,871
65,581,260
6,868,999,557
334.094,516
589,750.922
69.609.210
1,701.762,558
83,339,619
207,609
284,767
2.215,839
42,580,387
263,976
352.025
4,000,000
37,153,638
-21.4
-19.1
-44.6
+14.6
263,090
416,881
3.804,895
34,127,242
352,963
506,069
5,282,489
41,423,321
2,142,933
4.975,470
2.183,305 -1.9
5,853,636 -15.0
2,809,866
7,594,302
2,881,405
8,036,071
86,898,869
3,675,685
107,723.635 -19.3
4.733.523 -22.3
115,070.449
5,159.733
140,721,109
6,710,951
923,851
a
1,200,102
1,089,178 -15.2
aa
1,272,032 -5.7
788,104
a
1,412,295
--.
742,71-32
a
1,328,326
145.105,512
164,664,948 -11.9
171,446,857
207,985,546
-18.3
-13.5
-16.2
-9.1
-4.7
-10.2
-16.9
-32.1
-15.5
-21.8
-23.4
-18.6
-12.3
-12.4
902,922,669 1,098,519334 -17.8 10,989.690,112 12,848,024,785 -14.5
Eleventh Federal Reserve Distr ict-DallasTexas-Austin
5.553.604
7,450,206
Beaumont
7,197,000
9,170,000
Dallas
163,408.483
242,138,357
El Paso
23,101,060
29,000,969
Fort Worth
39,754,000
68.638,159
Galveston
14,039,000
24,310,000
Houston
131.891.91:
170.876.807
Port Arthur
2,370,880
3,694.394
Texarkana
1,725,048
3,032,224
Wichita Falls
6,338,000
10,006.000
La.-Shreveport
14,895,756
24.919806
410,274,749
.
-25.4
70,595,893
89.145.276
-21.5
-32.5 1,948,340,049
275,113,108
-20.5
-42.1
479,340,889
163,930,290
-42.3
-22.8 1,534,968,987
-30.8
32,775,675
-43.1
22,440.842
93,152.041
-36.7
-40.2
222,103,548
593,296,922 -30.8
4,931,906,598
$
90,623,004
104.639,692
2,615,926.948
294.569.961
681.198.891
260,688,000
1,829.300,885
39 217.743
30,504,701
119,836,246
26.5,545.762
-22.1
-14.8
-25.5
-6.6
-29.6
-37.1
-16.1
-16.4
-26.4
-22.3
-16.4
6,332,051,833 -22.1
Twelfth Federal R eserve Distric t-San Franc faceWash.-Bellingham __
3,288,000
4,795,000 -31.5
46,509,884
42,790,000 +8.7
Seattle
148,083.904
207.551.511 -28.7 1,844,288,838 2,474,690,410 -25.5
Spokane
43,068,000
58.307.000 -26.1
527,518,000
823,173,000
15.4
Yakima_
5,932,593
10,161,450 -41.6
54,500.933
79,688,720 -31.6
Idaho--Bolse_
6,860,752
7,912,187 -13.3
65356,600
67,703.500 -3.8
pre.-Eugene
1,484,000
2.191,500 -32.3
19,723,239
24,510,724
-19.5
Portland
147,265,804
193,859,251 -24.0 1,834,724,983 1,909,202.941 -14.4
Utah-Ogden
8,142,321
10.392,456 -21.7
75,147,439
88,816,801 -15.4
Salt Lake City
76,524,749
96,672,076 -20.8
830,456,772
934,759,935 -11.2
ariz.-Phoenix
15,916,000
21.520,000 -26.1
182,749 000
221,688,000 -17.6
1.111.-Bakersfield
4.386,993
7,943,838 -44.8
82.017.552
68,392,526 +19.9
Berkeley
15,451.648
22,630,740 -31.7
212,441,619
234,813,130 -9.5
Fresno
15,293,998
26,323,793 -41.9
138,456,752
195,290,939
-29.1
Long Beach37,012,997 -28.2
332,786.308
420,507,649 -20.9
Los Angeles
No longer
;111I report clearing ff.
Modesto
3,174,606
5,144,295 -3.8
47,345,476
49,132,973 -3.6
Oakland
58,278,996
718,597,732
90.891.566 -35.9
938.545,995 -23.4
Pasadena
20,893,205
288,614,990
28,189,166 -25.9
338,291.751 -20.6
Riverside
3,067,394
4,426,602 -30.7
46,069.839
57,134,624 -19.4
Sacramento
26.105.199
324,084,033
32,946,799 -20.8
359,212,711 -9.8
San Diego
20,240,455
251,912.504
28,130,229 -28.0
296,414,144 -15.0
San Francisco
653,641,287
956,536,734 -31.7 8,814,823,322 10,073.673,473 -12.5
San Jose
12,754,193
20,813.161 -38.7
144,119.179
174.755.100 -17.5
Santa Barbara
8.225,915
9,573,170 -14.1
95.013,372
97,350,604 -2.4
Santa Monica
7,701,048
9,028,956 -14.7
93,681,895
106,443.859 -11.2
Santa Rosa
1,867,600
2,467,689 -24.3
22,006,573
24,852,628 -11.5
Stockton
8,530,100
12,343,700 -30.9
99,586,100
124,690.700 -20.1
Total(26 citles)
1,342,766,093 1.907,765,866 -29.6 16,973,132,984 20.025.526,846 -15.2
1.020,232
1,197,728 -14.8
1,863,064
1,594,282
31,535,361
45,632,086 -30.9
56.885,808
58,608,585
7,714,000
2,693,000
11.990,665 -35.7
4,869,000 -44.7
14,065,112
7,122,973
15,270,529
7.362,000
2,592,163
4,618,348 -43.9
5,290,010
5,2.50,758
45.554,756
68,307,827 -33.3
85,026,967
88,08E1,132
30,486,350
8,393,000
1,140,863
37,856.759 -19.5
10,253,000 -18.2
1,910,589 -40.3
45,428,398
12,117,000
1,794.170
49.790,929
14,504,000
2,104,208
27,846,474
32,701,202 -14.8
38.634,539
42,272,688
17,066,226
19.637,503 -13.1
19,397,211
24,864,674
3,225,523
5,082,310 -36.5
4.132,255
5,738,434
7,295,418 -21.3
8,056,158
No longer will re port el casings.
6,240,853
7,645,948
12,037,220
3,864,167
4,564,090
4,128,938
130,205,456
2.324,133
1,652,233
1,599,724
1,832,400
256305,229
15,295,339 -21.3
5,303,159 -27.1
5,585,633
4,864,191
172,169.831
7.772,759
1,853,265
1,710,627
2,016,200
18,899,864
6.081,259
19,023,435
6,576,250
-18.3
5,287,559
-15.1
5,057,426
-24.4 203.146,I . I
-70.1
3.303,903
-10.7
1.781,921
-6.5
1,751,904
6.633.404
5.450.508
240,313.000
3,966,668
1,781.833
2,172,339
-9.1
1,921,600
2,127,000
331,307.785 -22.7 376.769,167
435,473,537
Band tot. (186 cities) 36,283,772,152 64,455,146,848 -43.7501,367,620.889662.875.059,571 -24.4 7,194,022,954
10 243098427 -29.8 12633346099 12089696892
lutside New York_. 14,100,477,167 21,365,443.608 -34.0 181,218,674,019 218.729,810,183 -17.1 2.891.614,8433,774.286,1
83 -26.7 4,016,194,403 4,484,668.528
CANADIAN CLEARINGS FOR NOVEMBER,SINCE JANUARY 1, AND FOR WEEK ENDING NOVEMBER
27.
Eleven Months Ended November 30.
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
1930.
1929.
s
$
532,743,207
453,617,711
220,936.598
76,296,886
31,592,267
29,433,648
14,264.554
23,054,809
37.876.892
9,769,106
9,539,526
12,668,679
22,099,704
26,823.950
2,501,645
2,415,368
10,244,550
4,806,373
4,542,168
3 696,590
3063,704
1,744,542
4,078,440
3,485,418
5,052.808
13,498.629
1,850,939
3,623,307
3,567.626
2,901.954
2,621.225
824.660,681
686,378,688
335.179,707
102,195,408
42,127,404
36,325,427
16,793,232
30,242,906
60,915,328
12.456,700
11,911,345
15,822,983
30,092,837
40,000,000
3,403.487
4,000.000
15,000,000
6,996.633
6,764,249
5,479,436
4,505,932
2,338,467
4,311,747
4,680,509
6,000,000
22,700,522
2.807.892
5,285,773
4,385,775
3,902.585
4,893,078
Du.or
Dec.
-15.4
-33.9
-34.1
-25.3
-25.0
-19.0
-15.1
-23.8
-37.8
-26.6
-24.7
-19.9
-26.6
-32.9
-26.5
-39.6
-31.7
-31.3
-32.9
-32.5
-32.0
-25.4
-5.4
-25.5
-15.8
-40.5
-34.1
-31.5
-18.6
-25.6
-46.4
1930.
1929.
Inc.or
Dec.
$
a
%
6,349,841,190
5,559,124,829
2,330,519,893
916,507,526
340,940.491
311,080,885
160,112,649
296,239,535
414,051,283
114.491.626
116,045,730
153,327.847
270,289,063
233.064.370
24,549,517
25,295,179
108,089.161
55,158,318
53,046,662
39,660.865
40.233.846
15,984,284
42,795,606
42,312,660
57,568,697
199,982,896
20,943,533
47,138,040
40.523,936
29,410,078
33,576,689
7,826,498,210
7,150,228,877
3320,527.015
1,151,797,409
405,428,433
341,596,347
180,181328
319,558,778
646,331,118
140,912,325
139,966,887
168,483,504
326,713,586
314,316,673
32,622,552
35,487,018
134,484,001
66,834,021
70,642,819
48.236,339
47,788.531
24.481,820
47,206,483
50,328,748
64,928,562
282,055.406
24,957,908
48,328,469
43,066,056
37,990,519
40,342,742
-16.7
-22.2
-25.3
-20.4
-15.9
-8.9
-11.1
-7.3
-35.9
-18.8
-17.1
-9.0
-17.3
-25.9
-24.7
-28.7
-19.6
-17.5
-24.9
-17.8
-15.8
-34.7
-9.3
-15.9
-11.3
-29.1
-18.1
-2.5
-5.9
-22.6
-16.8
Total(31 cities)
1,574,412,623 2,352,558,631 -33.1 18,441,706,884 23.132.322,384 -20.3
•Estimated. a No longer reports weekly clearings.
Week Ended November 27.
1930.
1929.
s
s
109,457,593
94,253,236
51,052,865
21,744,704
6,716,851
6,146,757
2,994.981
5,158.384
8,649,749
2,012,828
1,964,806
1,086,252
4,635,972
4,970,360
437,966
529,376
2,236,041
1,029,326
985,671
904.970
709,338
335,386
800,399
780,943
1,086,252
3,339.559
412,654
812,423
724,958
733,830
592,775
161,285,013
130,860,062
59,100,030
21,947,448
7,703,289
7,244,482
3,516,515
6,804,573
13,345.568
2,653.491
2,470,875
3,113,408
7,000.000
8,500.000
567,960
773.048
2,825,095
1,300,557
1,462,070
1,161,187
1,090.300
470,897
875,958
900,252
1,492,252
5,175.624
550,000
1,113,742
834,142
877,237
925,566
Inc. or
Dec.
w.wwwww..mwInawtoweota.wmhmlww...... .ww,
wvisl
Month of November.
Clearings at-
336,295,203 455,740.641 -26.2
1928.
s
1927.
s
185,371,266
175.811,076
96,214,335
21,744,654
9.162,415
7,803,723
3,762,792
7,575,064
14,670.558
3,031.499
2,409,022
3,338,221
6,795,792
6,347,504
850,131
707,812
3.086,043
1,573,241
1,290,990
1,105,082
912.345
373,377
897,118
951,926
1,456,046
6,487,780
542,393
968,265
809,433
1,154,501
814,612
213,287.499
187,778,587
95,497,879
21,055,651
8,553,062
8,880,215
2,950,229
5,931,348
13,340,432
2,739.419
2,038,338
4,480,526
6,926,823
6.924.785
774,208
870,656
3,153,550
1,826,429
1,504,339
1,366,027
797.240
486,554
876,239
929.732
1,299,706
5,034,381
558,049
971,282
994,518
656.954
613,980
566,728,026
582.476,755
3661
FINANCIAL CHRONICLE
DEC. 6 1930.]
Government Receipts and Expenditures.
Through the courtesy of the Secretary of the Treasury we
are enabled to place before our readers to-day the details of
Government receipts and disbursements for November 1930
and 1929 and the five months of the fiscal years 1929-1930
and 1930-1931.
Assets—
Uold coin
gold bullion
CURRENT ASSETS AND LIABILITIES.
GOLD.
$
$
735,401,408.44 Gold etre. outstanding L728,272,579.00
2,773,527,015.90 Gold fund, Fed. Reserve
Board (Act of Dec. 2b
1913. as amended June
1,582,263,277.88
21 1917)
156,039,088.03
Gold reserve
Gold In general fund— 42,353,479.45
—Month of November— --Five Months--1929.
1930.
1929.
1930.
Receipts.
$
5
$
3,508,928,424.34
5
Total
Ordinary—
3 508,928,424.34
Total
36,365,242 44,125,943 170,621.682 262,917,284
Customs
Note.—Reserve against 5346,681,016 of U. S. notes and 51,248,450 of Treasury
Internal revenue—
by silver dolsecured
also
are
1890
01
notes
Treasury
outstanding.
1890
of
notes
28,222,921 28,281,052 610,485,786 668,817,160
Income tax
Miscell. Internal revenue— 43.472.474 50,489,440 249,997,833 267,829,354 lars In the Treasury.
DOLLARS.
SILVER
receipts—
Miscellaneous
Proceeds Govt.-owed secure.:
AMU—
Foreign obligations—
495,566.789.00 Silver ctfs, outstanding. 486.580.455.00
+flyer dollars
226.000
201,04
240,000
210.000
Principal
Treasury notes of 1890
10.426,869
407.509
235.200
235,200
Interest.
1,248,450.00
outstanding
2,646,673
29,231
1,196.164
986,138
Railroad securities
7,737,884.00
Sliver dollars in gen.fund
1,458,709
337,634
455.066
2,602,901
All others
7789.00
495,566,
Trust fund receipts(reappr.
Total
495,566,789.00
Total
19,829,359
3.569.977 1,360,807
24,857.802
for Investment)
GENERAL FUND.
4,190.022
559,616
1,151,970
Proceeds sale of surp. prop_ 01,244,622
12,359,848
Liabilities—
11,383,754
$
Panama Canal tolls, &a.— 1,632,293 2,355.936
$
A
83.897,853 Gold (see above)
7,414.310 14 574,269
64,552,468
42,353,479.45 Treasurer's cheeks outOther miscellaneous
498,674.43
standing
7,737,884.00
Silver dollars (see above)
120.362,092 143,889,380 1,137,115.514 1,334,597,931 United States notes_ _
2,175,254.00 Depos. of Govt. officers:
Total ordlnary
8,269,540.06
Post Office Dept
1,680,655.00
Federal Reserve notes_..
Board of Trustees,
102,779.00
Excess of ord. receipts over
Fed. Res, bank notes
Postal Say. System:
25,119,224 50
total expends, chargeable
National bank notes_
5% Reserve, law6,639.859.98
against ordinary receipts__
Subsidiary silver coin_
7,732,958.82
ful money
4,362,238.26
Excess of total expenditures
Minor coin
Other deposits
1,589,002.08
7,389,211.36
chargeable against ordinary
Silver bullion
Postmasters, clerks of
receipts over ord. receipts_ _124,288,697 74,517,974 299,427,563 208,105,983 Unclassified, collections,
courts.disbursingof20,804,994.91
Arc
ricers. &c
37,255,179.43
Expenditures.
Deposits in Federal Re27,192,717.94 Deposlts for:
Ordinary—
serve banks
Redemption of Fed'!
(Checks & warr'ts paid,&c.)
Deposits in special deRes. notes (5% fd..
General expenditures
186,512,141 181,717,182 976,749,942 916,927,874
positaries acct. of sales
35,333,473.13
gold)
Interest on public debt_b
13,384,825 14,576,408 198.016,349 233,628,096
of Ws.of Indebtedness 50,009,000.00
Redemption of nat'l
Refund of receipts—
Deposits in foreign dep.:
8.533,633
bank notes(5% fd..
Customs
1,547,043
317,055.27
1,334,404
8,578,219
To credit of Treas. U.S
lawful money)
28,807,208.82
43,468.783
Internal revenue
27,266.239
3,819,814 5.391.443
To credit of other GovRetirement of addl
35,000.000
Postal deficiency
50,004.582
2,011,782.03
10.000,000 10,000,000
ernment officers_ _
circulating notes,act
5,530,296 Deposits in nat'l banks:
Panama Canal
5,121.836
486,900
1,262,874
1.350.00
May 30 1908
6.798,199.82
Operations in special accounts:
To credit of Treas. U.S
0787,930
Uncollected Items, ex87.041
037,734
Railroads
e10,318
To credit of other Gov21.738,520.98
&c
529
049,773
changes,
015.914
War Finance Corporation_
174
19,087.144.89
_
_
_
officers
ernment
12,694,332 Dep.In Philippine Treas.
10,026,721
1,839,198
Shipping Board
1,634,724
141,225,907.55
1,232,013.18
Agricultural marketing fund
To credit of Treas. U.S
83,787,585.54
Net balance
49,088.818
24,422,770
(net)
1.450.718
488,273
414,804
24,312
Allen property funds
225,013,493.09
724.299
Total
139,599
048.150
225,013,493.09
Adjusted-service certif. fund_ 0402,788
Total
20.574,435
01,011
20,871,145
0145,076
Civil-service retirement fund_
Note.—The amount to the credit of disbursing officers and agencies to-day was
Investment of trust funds:
19,394,632 3303.305.350.04.
24,389,647
1,232,081
Government life insurance- 3,674.561
Under the Acts of July 14 1890 and Dec. 23 1913, deposits of lawful money for
231,129
346.914
c3,652
73.316
Dist. of Col. teachers' retire
of outstanding National bank and Federal Reserve bank notes are
9.605
354,831 the retirement
344,930
09,070
Foreign Service retirement_
Treasury as miscellaneous receipts, and these obligatinos are made,
203,598 paid into the
121,242
132.398
General railroad contingent 0177,900
under the Acts mentioned, a part of the public debt. The amount of such obliga$34,779,457.
244.622,789 218.204.304 1,371,454,077 1,297,878,961 tions to-day was
Total ordinary
$1,326,060 in Federal Reserve notes and 525,065,871 In National bank notes are
process of redemption and are charges against the deposits for
In
Treasury
the
In
Public debt retirem'ts chargethe respective 5% redemption funds.
able against ord.receipts:
65.000,000
244,514,950
Sinking fund
Purchases and retirements
203,050
30,000
from foreign repayments
228,400
Preliminary Debt Statement of the United States
Received from foreign Governments under debt setNovember 1930.
tlements_ _
58.100
Received for estate taxes_
The preliminary statement of the public debt of the United
Parch. &retire'ts from franchise tax receipts (Fed.
States Nov. 30 1930, as made upon the basis of the daily
Reserve and Fed. InterTreasury statement, is as follows:
mediate Credit banks)_
59,000
28,000
23.503
Forfeitures, gifts, &c
Bonds$599,724,050.00
3% Consols of 1930
203,050
65.089.000 244,824,953 2% Panama's of 1916-38
28,000
48,954.180.00
Total
25.947,400.00
2% Panama's of 1918-38
49,800.000.00
1961
Total expends, chargeof
Panamas
3%
28.894,500.00
able against ord. rects_244,650,789 218,407.354 1,436,543,077 1,542.703,914 3% Conversion bonds
20.491,820.00
Receipts and expenditures for June reaching the Treasury in July are included.
334% Foetal savings bonds
$7730911.750.00
a Counter entry (deduct).
Liberty Loan of 1932-47—
b The figures for the month include $31.779.53 and for the fiscal year 1931 to date
First
51.392,246,350.00
% Bonds
$174,742.57 accrued discount on war-savings certificates of matured series, and
5,003,950.00
for the corresponding periods last year, the figures Include $40,120.83 and $217.- 4% Bonds
536,287,050.00
172.78, respectively.
454% Bonds
$1,933,537,350.00
C Excess of credits (deduct).
6.268,232,550 00
44% Fourth Liberty Loan of 1933-38
8,201,769,900.00,
5758.984,300.00
Holdings.
Bonds
1947-62
of
Money
Treasury
%
At(
Treasury
1,036.834,500.00
Bonds of 1944-54
Treasury
0%
489,087,100.00
The following compilation, made up from the daily Gov% Treasury Bonds of 1946-56
493,037.750.00
pi% Treasury Bonds of 1943-47
ernment statements, shows the money holdings of the Treas- 154%
359,042,950.00
of 1940-43
Bonds
Treasury
3.136.986.600.00
ury at the beginning of business on the first of September,
October, November and December 1930:
Holdings in 0.3. Treasury Sept. 1 1930 Oct. 1 1930. Nov. 1 1930. Dec. 1 1930.
$
$
$
$
Net gold coin and bullion_ 203,825,300 200,321,826 194,607,433 198,392,568
12,974.593
14,833.913
10,789,305
15,127,095
Net silver coin and bullion
3,366.261
4,358,111
2.792,711
2,175,254
Net United States notes_
28,949,281
26,428,115
20,695.094
25,119,225
Net national bank notes__
1,216,080
1,405,145
871,885
1.680,655
Net Federal Reserve notes
68.385
86.047
47.718
102.779
Net Fed'! Res. bank notes
6,112,512
6,759,531
8,356.443
6,639,860
Net subsidiary silver
5.239.762
5,224,677
5,836.222
25,167,233
&c
coin,
Minor
Total cash In Treasury_ 251,214,678 258,246.700 253,702,972 •274,404.669
Less gold reserve fund-- 156.039.088 156,039,088 156,039,088 156,039.088
Cash balance In Tress'y
Dep.In spec'l depositories.
account Tresn'y bonds.
Treasury notes and certificates of indebtedness
Dep. in Fed'! Res. bank__
Dep. In national banks:
To credit Treas. U. 8_
To credit dish. officers_
Cash In Philippine Islands
Deposits in foreign depts.
Dep.In Ferri Land banks
Net cash in Treasury
and in banks
Deduct current liabilities.
95.175,590
102,207,612
97.663.884
118,365,581
63.913.000
27,949,343
272,686,000
40,696,067
169,848,000
24,744,557
60.009,000
27,192,718
6,984,062
18,338,588
744,428
2.769.967
7,751,737
18,493.478
843.471
2,062,765
6,039,888
19,586,691
1.391.297
2,201,371
6,798.200
19.087,144
1,232,013
2,328.837
215.872,978
112.205,823
444,741,130
113,577,836
321,475.686
118,418,819
225,013,493
141.225,908
312.112.568,250.00
Total Bonds
Treasury Notes134% Set. A. 1930-32, maturing Mar. 15 1932
354% Ser. 13, 1930-32. maturing Sept. 16 1932
354% Ser. C. 1930-32. maturing Dec. 15 1932
$625,546,350.00
483,826,200.00
451,720,450.00
6% Adjusted service—Series 1931 to 1935..,....
4% Civil service—Series 1931 to 1935
6% Foreign servIce—Series 1933 and 1935_
$1,561,093,000.00
621,400.000.00
159,600.000.00
1,297,000.00
7'reasury Ceriffleafes31(% Series T1)-1930, maturing Dec. 15 1930
34% Series T.1-1931. maturIna June 15 1911
254% Series TS-1931, maturing Sept. 161931
$483,341,000.00
429,373,000.00
334,211,000.00
Treasury Bills (Maturity Value)—
Maturing Nov. 17 1930
Maturing Dee. 16 1930
Maturing Dec. 17 1930
Total interest-bearing debt
Matured Debt on Which Interest Has Ceased,—
matured—Issued prior to Apr. 1 1917
debt
Old
Second Liberty loan bonds 01 1927-42
Third Liberty loan bonds of 1928
34% Victory notes of 1922-23
04% Victory notes of 1922-23
Treasury notes
Certificates of indebtedness
Treasury bine
Treasury savings certificates
92 yes KRIC
103.667.155 331.163.294 203.056.867
•.,..nahip moth balenre
• Includes Dec. 1 67,383,211 sliver bu lion and $4,362,238 minor, &c., coin not
Included in statement "Stock of Money."
Debt Bearing no Interest—
(lofted States notes
Less gold reserve
Treasury Cash and Current Liabilities.
The cash holdings of the Government as the items stood
Nov. 29 1930 are set out in the following. The figures are
taken entirely from the daily statement of the United States
Treasury as of Nov. 29 1930.
Deposits for retirement of national bank and
Federal Reserve bank notes
Old demand notes and fractional currency
Thrift and Treasury savings stamps. unclassified sales, &c
2,343.390,000.00
1,248,925,000.00
$51,262,000.0))
51,263,000.00
127,455,000.00
229.980,000.00
315.932,883,250.00
$1,847,310.25
4,792,350.00
8,124,350.00
20.750.00
1,337.750.00
382,800.00
3,374,000 00
14,000 00
1,378.600.00
21,071,910.28
$348,881,018.00
158,039,088.03
$190,641,927.97
Total gross debt
34,779,457.00
2,043,049.31
3,429,217.53
230,893,651.18
$18,184,828,812.07
FINANCIAL CHRONICLE
COMPARATIVE PUBLIC DEBT STATEMENT.
(On the Basis of Daily Treasury Statements.)
Aug 31 1919
When War Debt
Nov. 30 1929
Was At Its Peak.
A Year Ago.
Gross debt
$26.596,701,648.01 $16,691,550,755.78
Net balance in general fund
1,118,109,534.76
123,894,243.89
Gross debt less net balance In gen. fund_ _$25,478.592
,113.25 $16,567,656,511.89
Oct. 31 1930
Last Month.
Nov. 30 1930.
Gross debt
$16,179,837,396.57 $16,184,828,812.07
Net balance in general fund
203,056,866.81
83,787,585.54
Gross debt less net balance in gen. fund__$15,976,760,529.
76 316,101,041,226.53
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:
Wed.,
Thurs..
Frt.,
Dec. 3.
Dec. 4.
Dec. 5.
16 3-16
16
15%
858.1%cl. 859.1%d. 8513.13(cl.
57%
58
57%
102%
102%
102%
100%
100%
100%
The price of silver in New York on the same days as been:
34%
343.4
Tominertialand jc I,Xiscalmeons
343.4
ew
Breadstuffs figures brought from page 3735.-AR
the statements below rogarding 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
MinneapolisDuluth
Milwaukee
Toledo
Detroit
Indianapolis_ _
St. Louis_ _ _ _
Peoria
Kansas City..
Omaha
St. Joseph.
Wichita
Sioux City.
Flour. I Wheat.
Corn.
Oats.
Barley.
Rye.
bbls.1961bs.lbush.60 lbs. bush. 56 lbs. bush.32 lbs. bush.481bs.
bush.501bs.
217,000
166,000 1,038.000
220,000
32,000
25,000
135,000
117,000
24.000
933,000
220,000
67,000
102,000
6,000
10,000
9,000
129,000
21,000
84,000
1,000
14,000
29,000
8,000
21,000
7,000
20,000
2,000
8,000
608,000
126,000
377,000
423,000
156.000
66,000
54.000
23,000
203,000
57,000
38,000
86,000
514,000
323,000
88,000
160,000
257,000
70.000
98,000
95,000
8,000
97.000
22,000
2,000
15,000
55,000
34,000
Total wk.1930
Same wk.1929
Same wk.1928
407,000 3,205.000
420,000 4,234,000
501,000 11,192,000
3.565,000
6,555,000
8,833,000
441,000
884,000
1,714,000
807,000
2,442,000 1,628,000
144,000
397,000
503,000
Since Aug.11930
7,967,000222,554,000 71,969,000 59,116,00029,891,00013
1929
8,260,000225.111,000 76,752,000 73,236,000 43,905,000 ,907,000
1928
9,062,000 295,689,000 84,588,000 69,031,000 64,796,000 13,239,000
17,611,000
Total receipts of flour and grain at the seaboard ports for
the week ending Saturday, Nov. 29 1939 follow:
Flour. I Wheat. I
Corn.
Oats. I Barley.
Rye.
bbls.196Ibs;bush.60 lbs. bush.56 lbs. bush. 32 lbs.
bush.561bs.
bush.481bs.
305,000, 2,216,000
New York_ _
12,000
132,000
37,000,
Protland, Me_
25,000'
25,000
8,000
33,000
Philadelphia__
2,000
12,000
16,000
11.000
19,000
Baltimore_ _
14,000,
1,000'
Norfolk
60,000,
New Orleans.
45,000
33,000
24,000,
Galveston__
5,000
29,000
Montreal_
602,000
44,0001
8,000
9,000
472,000 2,906,000
Total wk.1930
61,000
234,0001
45,000
9,000
23.544,0001
Jan.1'30
55,3S9,000 4,523,000 5,540.000, 920,000
Since
708,000
355,000 3,601,000
Week 1929_80,000
203,000'
10,000
18,000
Since Jan.1'29 22,814.000157,792,000 16,994,000 15,330,000,24,372,000 3.414,000
•Receipts do not include grain passing through New Orleans for foreign ports
of lading.
oat
Recall/fa at-
The exports from the several seaboard ports for the week
ending Saturday, Nov.29 1930, are shown in the annexed
statement:
Exports fromNew York
Boston
Philadelphia
Baltimore
Norfolk
New Orleans
Galveston
Montreal
Houston
Wheat.
Corn.
Bushels. Bushels.
567,000
33,000
8,000
42,000
75,000
65,000
602,000
2,000
Total week 1930._ 1,392,000
Same week 1929____ 4.553.000
2,000
8.000
Flour.
Oats.
Rye.
Barley.
Barrels. Bushels. Bushels. Bushels.
48,045
21,000
9,000
1,000
1.000
29.000
30,000
29,000
4,000
151,045
107.294
2,000
44,000
9,000
8,000
46,000
24.000
9.000
29,000
37.000
The destination of these exports for the week and since
July 1 1930 is as below:
Total 1930
Total 1929
151,045 5,933,621 1,392,000 104,472,000
167.294 3.955_293 4.5,53000 73 844.000
2,000
ft 000
Since
July 1
1930.
Bushels.
86,000
28,000
114,000
217.000
The visible supply of grain, comprising the stocks in
granary at principal points of accumulation at lake and
seaboard ports Saturday, Nov. 29. were as follows:
GRAIN
Wheat,
bush.
1,464,000
United StatesNew York
Boston
Philadelphia
Baltimore
Newport News
New Orleans
Galveston
Fort Worth
Buffalo
" afloat
Toledo
Detroit
Chicago
" afloat
Milwaukee
Duluth
Minneapolis
Sioux City
St. Louis
Kansas City
Wichita
Hutchinson
Sc. Joseph, Mo
Peoria
Indianapolis
Omaha
On Lakes
STOCKS.
Corn,
Oats,
bush.
bush,
105,000
28,000
6,000
98,000
119,000
32,000
48,000
Rye,
bush.
46,000
1,000
6,000
7,000
Barley,
bush.
16,000
612,000
2,000
7,732,000
90,000
377,000
4,441.000
76,000
62,000
129,000
5,362.000
6,623,000
218,000
370.000
6,000
246,000
13,933,000
947.000 1,049,000
746,000
554,000
11,546,000
101,000
788,000
689,000
4,611,000
12,000
235,000
2,000
3,000
249.000
21,000
50,000
20,000
40,000
18,695,000 1,511,000 7,646,000 3,531,000 1,578,000
1.318,000
620,000 2,465,000
792,000
2,131,000
763,000 4,223,000
239,000
748,000
24,046.000
257,000 2,424,000 4,393,000
987,000
33,167,000
448,000 5,601,000 4,824,000 5,146,000
1,190,000
112,000
680,000
29,000
6,516,000
407,000
346,000
20,000
92,000
22,574,000
246,000
152,000
130,000
469,000
1,868,000
6,000
9,000
4,139,000
7,055,000
152,000
396,000
17,000
82,000
9,000 1,469,000
1,085,000
764,000 1,333,000
31,000
63,000
13,575,000
575,000
287,000
71,000
137,000
1,169,000
119,000
331,000
Total Nov. 29 1930...195,560,000 6,973,000 28,269,000
16,538,000 11,836,000
Total Nov. 22 1930_198,008.000 6,338,000 28,881,000 16,654,000
Total Nov. 30 1929_184,602,000 3,267,000 27,534,000 11,869,000 12,291,000
9,849,000
Note.-Bonded gain not included above: Oats, New York. 3,000 bushels;
Duluth,
4,000; total, 7,000 bushels, against 670,000 bushels in 1929. Barley, New
York.
129,000 bushels; Buffalo, 255,000; Buffalo afloat, 1,129,000;
48,000; total.
1,561,000 bushels, against 3,166,000 bushels in 1929. Wheat,Duluth.
New
bushels; Boston, 709,000; Philadelphia, 164,000; Baltimore, 611,000; York. 2,020,000
Buffalo, 5,018,000; Buffalo float, 16,913,000; Duluth, 187,000; on Lakes,
total, 27,924,000 bushels, against 35,302,000 bushels in 1,367.000; Canal, 935,000;
1929.
CanadianMontreal
4,946,000
817,000 1,857,000 1,212,000
Ft.William & Port Arthur_29,619,000
3,008,000 7,569,000 14,696,000
Other Canadian
23,158,000
2,548,000
811,000 2,566,000
Total Nov. 29 1930____57,723,000
6.373,000 10,237,000 22,474.000
Total Nov. 22 1930_ _ __62,355,000
6,261,000 10,811,000 24,015.000
Total Nov. 30 1929___75,455,000
9,999,000 5,703,000 15.701.000
SummaryAmerican
195,560,000 6,973,000 28,269,000 16,538,000 11,836,000
Canadian
57,723,000
6,373,000 10,237,000 22,474,000
Total Nov. 29 1930_253,283.000 6,973,000 34,642,000 26,775,000
Total Nov. 22 1930_260,363,000 6,338,000 35.142.000 27,465,000 34,310,000
36,306,000
Total Nov. 30 1929...259,057,000 3,267,000 35,533,000 17,572,000 25,550,000
The world's shipment of wheat and corn, as furnished by
Broomhall to the Now York Produce Exchange, for the week
ending Friday, Nov. 28, and since July 1 1929 and 1928,
are shown in the following:
Wheat.
Exports-
North Amer.
Black Sea_ __
Argentina_
Australia __India
0th.countr's
Total
Week
Nov. 28
1930.
Since
July 1
1930.
Corn.
Since
July 1
1929.
Week
Nov. 28
1930.
Since
July 1
1930.
Since
July 1
1929.
Bushels.
Bushels,
Bushels.
Bushels.
Bushels,
Bushels.
5,400,000 184,303,000 147,206,000
25,000
854,000 1,906.000
4,504.000 68,238,000 13,203,004) 927,000 19,715,000 2,952,000
800,000 19,366,000 87.908,000 3,976,000101,644,000 93,064,000
1,000,000 26,880,000, 19,949,000
16,000 8,872,000;
320,000
1,352,00022222,0001 17,236,000
179,000i 32,156,000 20,178,000
13,072,000330,171.000285,822.000 5,107,000154,369,000 118,100,000
Pittsburgh Stock Exchange.-Record of transactions at
Pittsburgh Stock Exchange, Nov. 29 to Dec. 5, both inclusive, compiled from official sales lists:
Stocks-
Friday
dates
Last Week's Range for
Week.
Sale
of Prices.
Par. Price. Low. High. Shares.
*
Allegheny Steel
39
39
Aluminum Goods Mfg_ •
1636 17
•
Amer Austin Car
2
2
Arkansas Nat Gas Corp- "
634 634
ytA
Preferred
%
10
131aw-Knox Co
• 26
2536 26)4
Carnegla Metals Co_ _ _ _10
3
3
43.6
Clark (D L) Candy
•
103.4 11
CloveD Splint Coal pref_io 90
90
90
Devonian Oil
634 7
Duff Norton
*
24
24
Harbison Walker Ref _ _.* 41
41%
41
Independent Brewing_ _ _ 50
234 23.4
Jones & Lau'gn Steel p1100
120 120%
Keystone Nat Bank _ _ _100
300 300
Koppers Gas & Coke pf_100 10036 10036 10034
Liberty Dairy Prod
•
134
134
Lone Star Gas
* 2334 233.4 2434
Mesta Machine
5 2634
24
2634
Nat Fireproofing pref __ _60
32% 234
Penn Federal Corp
*
2
2
2
Phoenix 011 tom
25c
200 20c
Pittsburgh Brewing
50
6
634
634
Preferred
50 1334
1336 1434
Pittsburgh Forging
*
12
12
Pittsburgh Oil & Ga
5
2
2
Pittsburgh Plate Glass...25 39
38
3914
Pg12 Screw dr Bolt Corp...* 15
1434 153.4
Plymouth 011 Co
5
1934 1934
Ruud Manufacturing* 2434
24
2434
Salt Creek Consol 0E1_10
1% 134
Shamrock 011 & Gas
•
10
10%
40
80
480
52
326
795
560
110
30
130
100
85
65
45
10
30
160
5,540
350
10
50
1,000
115
345
180
100
395
745
250
285
100
235
Range Since Jan. 1.
Low.
X=g=
34%
Barrels Barrels.
Bushels.
Bushels. Bushels.
42,770 2,006,016
137,000 29,812,000
65,986 2,610,411
940,000 71,589,000
21,000
573,640
11,000 1,350,000
13,000
488,250
4,000
15,000
2,000
____
10,200
2,000
8,289
245,104
300,000 1.704.000
X
Silver in N. Y., per oz. (eta.):
Foreign
353.4
3434
United KingdomContinent
So.& Cent. Amer_
West Indies
Brit. No. Am.Col.
Other countries.-
X
101.10
Week
Nov. 29
1930.
XX '
X XX
86.70
101.10
Corn.
Since
July 1
1930.
=
87.25
101.20
Wheat.
Week
Nov. 29
1930.
XX
87.10
Flour.
Exports for Week
and Since
Week
Since
July 110Nov. 29 July 1
1930.
1930.
.
...w .W
WWW
.Q. biuW
CD. W
.W
WWWONWO.WW0.00
0.00051,
4W..oPOOOW...1 M.WW
Sat.,
Mon.,
Tues.,
Nov. 29. Dec. 1.
Dec,'2.
Silver, p. oz.d. 16 5-16
16 1-16
163(
Gold,p.fine oz. 858.134d. 85s.1%d. 858.2d.
Consols, 234s__ 58%
583
58
British 5s _____
103
1023
British
___.
100%
100%
French Rentes
(in Paris)..fr.
86.45
87.00
French War L'n
(in Parts)_fr. ____
101.55
101.35
[VoL. 131.
0,xxtIzti,,,4x0xxo,tJ,,xtuotx ,
uxxxu
ag”a%atgt4$aa.t.2,1;a<1541,1F41$a
3662
High,
72
24
734
18)4
8
4134
8
1936
90
14%
34
7136
43.4
123
300
104
32%
5634
32%
45
5%
80e
734
1434
25
3
5936
23
2734
38
234
2736
Apr
Jan
Jan
Mar
Feb
Apr
Mar
Apr
Oct
Apr
Mar
Apr
Feb
Apt
Dec
Oct
Apr
Apt
Apr
Feb
Oct
Apt
Nov
Dec
Mat
Jar
Jar
Jar
Feb
Mat
Feb
Apt
DEC. 6 1930.]
FINANCIAL CHRONICLE
Friday
Sales
Last Week's Range for
Sate
of Prices.
1Week.
' Stocks (Concluded) Par. Price. Low. High. Shares.
Standard Steel Springs.*
United Engin & Fdry___*
Vanadium Alloy Steel
•
Waverly Oil Wks cl A_
•
Westinghouse Air Brake_ _°
Westinghouse El dr Mfg_ •
UnlistedLone Star Gas pref
Mayflower Drug Stores
Western P Service v t c
534
24
3534
55
10
34
9834
27
37
55
10
3434
9834
400
185
100
100
130
25
Range Since Jan. 1.
Low.
24
3134
55
10
32
9814
Dec
Nov
Dec
Dec
Oct
Dec
High.
58
4934
6714
22
5034
9834
105 105
25 104
Oct 110
13i 134
35
134 Dec
5
11
12
9,158
934 Nov 33
*No par value. k Includes also record for period when In Unlisted Dept.
__ ___
1134
Apr
Apr
Jan
July
Feb
Dec
Apr
Apr
Apr
National Banks.-The following information regarding
National banks is from the office of the Comptroller of the
Currency, Treasury Department:
APPLICATION TO ORGANIZE RECEIVED WITH TITLE
REQUESTED.
Capital.
Nov. 29-Elgin National Bank, Elgin, Neb
$25,000
Correspondent; D. L. Jouvenat, Elgin, Neb.
APPLICATION TO ORGANIZE APPROVED.
Nov. 25-The Hollister National Bank, Hollister, Calif
100,000
Correspondent; J. R. Pendergrass, Hollister, Calif.
VOLUNTARY LIQUIDATION S.
Nov. 24-The First National Bank of Poseyvllle, Ind
Effective Nov. 22 1930. Liq. Comm.; J. H.Gwaltney, 25,000
P. H. Antle and H. E. Davis, Poseyville, Ind. Succeeded by The Bozeman Waters First National Bank
of Poseyville, Ind., No. 13503.
Nov. 25-The Bozeman Waters National Bank of Poseyville. Ind_
Effective Nov. 22 1930. Liq. Comm.; Geo. J. Waters. 50,000
John Price and A. E. Jacquess, Posey-vile, Ind.
ceeded by The Bozeman Waters First National SucBank
of Poseyville, Ind., No. 13503.
Nov. 24-The Commercial National Bank of Nowata,Okla
Effective Nov. 10 1930. Liq. Agent; Eugene Wilkinson, 50.000
Nowata, Okla. Succeeded by Commercial Bank
of
Nowata, Okla.
Nov. 25-The Exchange National Bank of Pauls Valley, Okla
Effective Sept. 16 1930. Liq. Agent; Edwin B. Cox, 50,000
Box 276, Ardmore, Okla. Absorbed by The Pauls
Valley National Bank,Pauls Valley, Okla.. No.7892.
Nov. 26-The First National Bank of Wood River Neb
Effective Nov. 10 1930. Liq. Agent; harry S. Eaton, 40,000
Wood River, Neb. Absorbed by The Farmers State
Bank. Wood River, Neb.
Nov. 26-The Sykesville National Bank, Sykesville, Md
Effective Nov.25 1930. Liq. Agents' Grover L. Michael 75,000
and C.Thomas Summers,care of the liquidating bank.
Absorbed by Central Trust Co.of Maryland, Frederick,
Md.
Nov. 28-The Central National Bank of Decatur, Ala
Effective Nov.6 1930. Liq. Agent; First National Bank 200,000
In Decatur, Ala. Absorbed by First National Bank in
Decatur, Ala., No. 10336.
Nov. 29-The First National Bank of Ireland, Tex
Effective Nov. 22 1930. Liq. Agent; The Gatesville 25,000
National Bank, Gatesville, Tex. Absorbed by The
Gatesville National Bank, Gatesville, Tex.. No.6150.
CONSOLIDATIONS.
Nov. 28-The First National Bank of Sewickley, Pa
100,000
and
The Union National Bank of Sewickley. Pa
Consolidated to-day under Act of Nov. 7 1918, under 100.000
the charter and corporate title of "The First National
Bank of Sewickley," No. 4462, with capital stock of
$100,000.
Nov. 29-Lincoln National Bank of Newark,N.J
600,060
and
Colonial Trust Co. of Newark, N J
Consolidated to-day under Act of Nov. 7 1918. OS 300,000
amended Feb. 25 1927, under the charter and corporate title of "Lincoln National Bank of Newark,"
No. 12570, with capital stock of $600,000.
BRANCHES AUTHORIZED UNDER ACT OF FEB. 25
1927.
Nov. 25-The American National Bank of Nashville, Tenn.
Location of branches-Vicinity of; 617 Church St., Third
Ave. and Broadway, Ninth Ave. and Broadway.
4918 Charlotte Ave., 1614 West End Ave., 901
Monroe St., 21st Ave. South, 10th and Woodland
SM., 901 Second Ave. North, 44 University St.,
2704 West End Ave.,326 Union St.. (all located in the
city of Nashville, Tenn.).
Nov. 29-Lincoln National Bank of Newark, N. J. Location of
branch, 563 Broad St., Newark, N. J.
Auction Sales.-Among other securities, the following,
not actually dealt in at the Stock Exchange, were sold at auction
in New York, Boston, Philadelphia and Buffalo, on Wednesday of this week:
By Wise, Hobbs & Arnold, Boston:
Shares. Stocks.
$ per Sh.
30 Associated Textile Cos
35
100 New England Southern Corp ,
common
31 lot
100 Ipswich Mills, pref., 855 paid in
liquidation
534
10 Associated Textile Cos
35
65 Lyman Mills, $220 paid in llquidation
590.
100 Dwight Mfg. Co
2
5 Associated Textile Cos
35
10 Naumkeag Steam Cotton Co
84
10 Associated Textile Cos
3614
2 Eastern Mass. St. Ky. Co., adj.
stock
8
34 Great Northern Paper Co., par
$25
38
15 Boston Herald-Traveler Corp--. 163-4
27 National Service Cos., prof
27
100 Shawmut Bank Inv. Trust_..... 9
150 National Service Corp., pref.27-34
40 Alaska Pacific Salmon Corp., pf_ 15
37 Mass. Utilities Associates, pref..
par 850
35
401, R. Whipple Corp., let prof__ 3
61 J. R. Whipple Corp.. corn
50e.
2 units First Peoples Trust
20
50 Quincy Mkt. Cold Storage &
Warehouse Co.. common
22
170 New Eng. Equity Corp., com
23
1,350 New Boston Arena common:
$1,350 lot
1,350 Preferred
Shares. Stocks.
$ per
100 Boston Mfg. Co. 634% pref.; Sh.
$31,000 Pelham Associates 6s,
1923
32 lot
510 The Torbell Co., pref., Par $10;
note for $1.020 given by the Torbell Co., dated July 1 1926. due
July 11931. with hat. at 73'- _____$6
10 United Invest. Amur. System, lot
class A; 10 rights united Invest.
Assurance System, class A: 10
rights United Inv. Assur. Sys.,
class B. interim receipt
100 Pyrene Co. of New Eng.; 10$1 lot
Building Products, Inc., corn.,
25 Savannah River Lumber Co.,
pfd.: 20 Savannah Itiv. Lumber
Co.,common, par 31; 10 Wendell
Phillips Co.. 1st pref
815 lot
BondsPer
$5,000 Newport Water Corp. 5s, Cent.
due May 1953
8834 & int.
35.000 Galveston Wharf Co. 534s.
due July 1954
90 & int.
35,000 United TeleP. & Teleg. Co.,
series B 6s, May 1953
90
32,000 Punta Alegre Sugar Co. 7s,dr int.
due July 1937
1014%
$1,000 Punta Alegre Sugar
Co. 7e,
due July 1937
1034% flat_
$2,000 Northern Texas Traction
Co.
55. due Jan. 1933
9534 & list,
By A. J. Wright & Co., Buffalo:
Shares. Stocks.
$ Per Sh.
50 Steel Car Co., Inc.. no par414c.
100 Boston & Montana Devel. Co.,
Boston, temp. Ws., par $5.„500. lot
1,000 Bidgood Cons. Mines, par
3X c.
$1
Shares. Stocks.
per Rh.
500 Creighton Fairbanks Mines,8
par
$1
75c.
lot
100 Premier Gold Mines, par
81- 75c.
25 Meldrum-Hosmer Co.,Inc.,
pfd.32 lot
3663
By R. L. Day & Co., Boston:
Shares. Stocks.
8 per Sh. Shares. Stocks.
t Per Sh.
15 Merchants Nat Bank
5183-4 5 Boston Insurance Co
25 Atlantic Nat. Bank, par $25_88 ex-div 10 Springfield Fire & Marine Ins.505
200 First Nat. Bank, par 320
Co., par 325
7834
11034
24 Federal Nat. Bank, par 320-..-- 95
45 Boston Woven Hose & Rubber
25 U.S. Trust Co., par 525
86
Co., common
55 ex-div
25 Associated Textile Cos
35-3634 40 Worcester Cold Storage & Ware5 Ludlow Mfg. Associates
11714
house Co., pref
20
50 Eyers Woolen Co
$5 lot 50 Jones, McDuffee & Stratton
50 Sharp Mfg. Co., common
$1 lot
Corp., pref
1
300 Whitman Mills
$6 lot 50 Worcester Cold Storage & Ware7 Lancaster Mills, common
$10 lot
house Co., pref
20
10 Sharp Mfg. Co., common
$10 lot 50 Manhattan Co., par $20
8634
20 Ipswich Mills, pref.. $55 paid
250 Old Colony Trust Associates
3534
In liquidation
55-4 200 United Securities Trust Assoc_ 25
25 Harmony Mills, preferred
1934 100 American Locker Co., par $5-32 lot
32 Great Falls Mfg. Co.
$1 lot 112 Mass Bdg.& Ins. Co.. Dar $25- 82
50 Gardiner Beardsell & Co., Inc.,
47 National Service Cos., pref..---27-34
preferred
$19 lot 20 Wrigley Pharmaceutical Co.,
11 Draper Corp
48 ex-div
par $1
$134 lot
32 Connecticut Mtge. & Title
Guaranty Co
Bonds.
$434 lot
Per Cent.
100 Winchester Repeating Arms,
$5,000 Florida Pub. Sem. Co. 6$,
pref., class A
2
April 1955
80 & lot
125 The B.& B. Amusement Enter$133,500 South Penn Collieries Co.,
prise, Inc
1
2d mtge. s. I.(His, Jan. 1946--$50 lot
By Barnes & Lofland, Philadelphia:
Shares. Stocks.
8 Per Sh. Shares. Stocks.
$ per Rs.
50 Public Utilities Consol.
2 Brownwortb 3c Co., par $50
$7 lot
class A
350 lot 2.50 Arcadia Community Enter300 Public Utilities Consol. Corp.,
prises, Inc
$3101
class B
325 lot 50 Jacob Miller's Sons Co., lot
400 Universal Service Motors Co $20 lot
preferred
$3,000 lot
300 Atlanta Birmingham & Atlantic
100 Finance Corp. of Amer.. pref.,
RR., common
$3 lot
no par; 70 common
$300 lot
900 Kerr Lake Mines, Ltd
$35 lot 50 Aldine Trust Co
10
15 Rolls Royce of Am., Inc., com.$16 lot 26 First Nat. Bank of Media
300
40 Standard Supply & Eq. Co., A--$2 lot 29 Union Bank & Trust Co
lot
$5
100 Union Oil Co. of Delaware...-$6 lot 10 Phila, Southern Dental, Inc.,
3 Overbrook Nat. Bank, par 5100- 90
class A common, no par
$2 lot
6 Corn Exch. Nat. Bk. & Tr. Co.,
5 Phila. Elec. Co., rem., no par.... 45
par $20
97
60 Windsor Locks Mills, Inc., pref.$11 lot
6 Tioga Nat. Bk.& Tr. Co., par $25 23
100 Equitable Bond & Mtge., pro! $25 lot
1 Fidelity-Phila. Trust Co
535
100 Equitable Bd. & Mtge. eom--$15 lot
20 Bankers Trust Co., par $50
20 Phila. Bourse, preferred
65
23
25 Real Estate-Land Title & Trust
BondsPer Cent.
Co., par 310
36
$8.000 Broad & Walnut Corp.10-yr.
40 Suburban Title & Trust Co.,
61-4s, Dec. 1 1937
5
Par 525
$2,000 Elizabeth Manor Apts., 15t
65
50 Glenside(Pa.) Trust Co., par $50 20
mtge. as. June I 1938
26
20 West Jersey Trust Co., Camden,
$1,000 Elizabeth Manor Apts., let
N.J.. par $20
60
mtge. 6s, June 1 1939
26
50 Merlon Title & Tr. Co., Ard$4,000 Wakenva Coal Co. rat 7s,
more, Pa
9434
1936
$16 lot
By Adrian H.Muller & Son New York:
Shares. Stocks.
$ per Sh.
500 Illuminated Arrow Co., Inc.
(N. Y. Corp.), no par
$500 lot
62 John C.Orr Co.,corn.; 511 pfd.$3501ot
300 Idaho Maryland Consol. Mines,
Inc.. of Nevada, par 31
$25 lot
500 Internat. Signal Co. of Arta.,
par $10
$46 lot
10 Bowman-Blitmore Hotels Corp..
common, no par
$10 lot
500 BerUner-Joyce Aircraft Corp.,
Class A
$1,200 lot
20 Frances Fox Laboratories; 10
Frances Fox Devel. Co
$15 lot
25 Detroit Harbor Terminals, Inc.,
common, no par
$25 lot
50 Timber Point Corp., par $50---$7 lot
386 Fitch, Cornell & Co
10
5 Federated Engineers Devel.Corp.,
prof.; 5 Federated Engineers Development Corp., coin., no oar:
30 Kelbay Corp. of Amer., oom.,
no par
$6 lot
300 Interstate Gasollne Co., par $1;
150 Royal Devel. Co., par $1;
$250 Royal Devel. Co. otf.
--$300 lot
300 Interstate Gasoline CO., par $1;
2 Sinaloa Exploration & Devel.
Co., no par; 100 Royal Devel.
Co., par $1
$85 lot
11 Pelham Petroleum Co., pref.:
30 Pelham Petroleum Co., corn.;
300 Wayne Coal Co., par 55____$7 lot
3,000 General Ore & Smelting Corp.
(Del.), no Par
$7 lot
100 Pine Lawn Cemetery
$117 lot
100 Union Cop. Mines Co., par $5.$4 lot
100 Cornstalk Products Co., Inc.,
corn., no par
$25 lot
100 Allen-Wales Corp., corn., no
par
550 lot
25 Akme Flue, Inc., com., no par;
10 Akme Flue Inc., 8% pref....338 lot
50 Biscayne Securities Corp__ _$400 lot
100 Canora Public Service Corp.,
corn., no par
$50 lot
15 Chapman Milburn & Co., Inc..
clans B pref., no par
$30 lot
873.4 Corlite Corp., class B, no par;
75 class A, no par
$100 lot
100 Direct Control Valve Co., class
A, no par
$150 lot
10 Indianap. Crawfordsville & DanAlio Elec. Ky. Co., pref
$10 lot
25 Indianapolls & Northwest. Trac.
Co., pref
810 lot
450 SpIltdorf-Bethlehem Electrical
Co., corn., no par
$550 lot
100 Detwiler dr Co., Inc., pref. _$150 lot
500 Mtge.Bond & Title Corp., corn,
no par
$3,000 lot
100 Whippoorwill Corp., pref
3
100 Spanish & General Corp., Ltd.,
par El
1
132 Home Foundation Corp., corn.,
no par
$10 lot
132 Home Foundation Corp., pref.,
par $50
$100 lot
25 Amer. Home Foundation, Inc..
corn., 110 Par
$20 lot_
25 Amer. Home Foundation, Inc.,
pref
$100 lot
219 N.Y. Home Foundation Corp.,
par $50
$100 lot
Ltd.,
N.Y. Home Foundation Corp.,
719
corn., no par
$100 lot
2,140 General Bldg. az Funding
Corp., corn., no par
$70 lot
73 Mansfield, Murphy & Foster,
Ins., no Par
$7 lot
360 B.13.& R.Knight Corp., corn.,
134
vol. Cr. ctfs., class C
5
80 Hildick Corp., class A, no par
7 Electric Outlet Co., Inc.. corn.,
DO par
1
75 George Weston Biscuit Co.,Inc..
corn., no par
$50 lot
Shares. Stocks.
8 Per Sh
60/Mallery Fuelgas Corp
$1 lot
10 Bradshaw Product., Inc.. no par.g1 lot
2 Marland 011 Co., no Par, 100
Yukon Gold Co., par $5: 50
Tubize Artificial Silk Co. of
Amer. coin. B at. of den_--$135 lot
10 Perfection Tire & Rubber Co..
no par
$1 lot
300 Merchants & Manufacturers
Insurance Co
1134
100 Amer. Cirrus Engines Co., class
A. no par; 100 class B, no par_320 lot
1,550 Amer. Cirrus Engines Co..
class A; 1.550 class B
$140 lot
641 Corlite Corp. A, no par----3200 lot
500 Amer. Cirrus Engines Co., class
A: 500 class B
$50 lot
100 Amer. Cirrus Engines Co., class
A; 100 class B
$17 lot
500 Amer. Cirrus Engines Co., class
A: 500 class B
$40 lot
100 Amer. Cirrus Engines Co., class
A; 100 class B
$20101
100 Michigan Seamless Tube Co.,
corn., no par
634
Sundry demand notes aggregating
approximately $7,500, dated Jan.
6 1923, Oct. 31 1926, dc Nov. 1
1929
515 lot
50 Vitaglass Corp., pref.; 100 Vitaglass Corp., corn.; 200 Liquidometer Corp. A
32.850 lot
10 Sharon Properties Co., Inc..
corn., par Si
$6 lot
100 Coons Machinery Corp.,$7 pfd.
temp. cti
$15 lot
53 1-3 Conner's Farms, Inc
$3 lot
300 Belamose Corp.(Conn.), pref.'
500 common
$i00 lot
2,000 Consol. Distributors, Inc.. no
Par
$4 lot
200 Brotherhood of Locomotive Englneers Scour. Corp. of N. Y.,
class A; 100 claw B, no par. _ _$15 lot
10 Helen Learning, Inc., corn.; cease
of 72 East 56th St.to Helen Learnlug, Inc.; 91 abs. of stock of 50
W.67th St.,Inc.,and proprietary
lease of apartment 5D in 50 W.
67th St., Inc., and 20 shs. corn.
stock of Amer. Bank Note Co.;
sold subject to a loan of $7,7003100 lot
2,022 High Rock Knit. Co., corn- 3
100 Nat'l Dairy Products Corp,
corn., no par
4334
350 Isaac Silver & Bros. Co., Inc..
7% cum. cony. pref
72
1,000 Automatic Bookkeeping Reglater Co..corn.;9 Republic Bevel.
Co
$4 lot
530 Lucky Tiger Gold Combination
Mining Co.. par $10
50o.
250 McAvoy Homes, Inc., corn.,
no par
35 lot
50 McAvoy Homes, Inc., pref____36 lot
100 M.H.Elder Culvert 3, Machincry Co.(Atlanta, Ga.)
$57 lot
Bonds.
Per Cent.
$12,500 General Fuel Corp. let 8s,
Sept.I 1926, March & Sept. 1926,
coupons attached: $2,500 General
Fuel Corp. 8% notes, series A,
Dec. 1 1929, Dec. 1925 and subsequent coupons attached_ _._$100 lot
$5,000 Yumuri Rail & Tramway Co.
1st 5s 1959,July 1923, coup.on _325 lot
$1,250 reg. deb. note of Timber Pt.
Corp. due July 1 1940
$25 lot
$10,000
Park-Murray Corp., ctf. of
'
indebt., due Aug. 15 1944, lat.
6%,subject to certain suborclinaHon agreement with Irving Trust
Co. and Underwriters Trust Co.,
which purchaser must assume;
together with 10 shares of ParkMurray stock
$1351o1
3664
Per Cent.
Bonds.
11,000 Compton-Delevan Irrigation
Dist. (Calif.) 1st issue 6%. due
1934,Jan. 1931,coup. attached- 20
$4,000 Colusa Co.(Calif.) Reclamation Dist. 1004, 66. due Jan. 1
1936. Jan. 1931 coup. attached- 30
$6.000 Hidalgo Co. (Tex.) Hidalgo
Co. road improv. warrant, series
of 1923 7%, due Aug. 1 1943;
Aug. 1930 coupon attached
534
12,000 Northern Ohio'Frac.& Light
Co. 1st lien & ref. 5s, series A;
due Aug. 1 1956; Feb. 1931 coup
93$(
attached
Per Cent.
Bonds.
$200 Cornstalk Products Co., Inc.,
cony.6% gold notes, May 1 '31_$50 lot
$2,000 Associated Gas & Elec. 6%
oonv. deb. 6s. °beg. ser. F reg__ 83
$500 Maryland & Delaware Coast
Ry. 1st mtge. bearer 68, May 1
5100 lot
1944
$10,000 Premax Products, Ino., 15year sink. fund 78, ett. of dep_-_$70 lot
$9,000 Cespedes Sugar Co. 735%
1st mtge. sink. fund 7s 1939.... 46
$8,000 1st mtge. & coll. trust 8s.
Issued by George E. Merrick; due
Oct. 1 1928; Apr. 1928 coup. on.$30 lot
DIVIDENDS.
Dividends are grouped in two separate tables. In the
first we bring together all the dividends announced the
current week. Then we follow with a second table, in
which we show the dividends previously announced, but
which have not yet been paid.
The dividends announced this week are:
Name of Company.
Per
When
Cent. Payable.
Books Closed.
Days Incluttve.
Railroads (Steam).
'2)4 Feb. 2 *Holders of reo. Dec. 31
Atch. Topeka & Santa Fe, pref
*2
Dec. 30 *Holders of rec. Dec. 15
Buffalo& Susquehana, pref
se
Dec. 26 'Holders of rec. Dec. 15
Chicago Burlington dr Quincy
ee
Dee. 26 'Holders of rect. Dec. 15
Extra
Dec. 31 'Holders of rec. Dec. 15
Colorado & Southern, corn.(annual)_ _ _ se
Dec. 31 *Holders of rec. Dec. 15
First preferred
Dec. 31 *Holders of rec. Dec. 15
*4
Second preferred
Elmira es Williamsport. pref
311.61 Jan. 1 *Holders of roe. Dec. 20
Des. 31 Holders of rec. Dec. 13
2
Erie RR., 1st & 2nd preferred
Jan. 1 'Holders of reo. Dec. 11
Illinois Central, leased lines
*2
Jan. 2'Holders of rec. Dec. 8
*1
Lackawanna RR. of N..1. (guar.)
8734e Jan. 2 Holders of rec. Deo. 13
Lehigh Valley, corn.(guar.)
$1.25 Jan. 2 Holders of roe. Dec. 13
Preferred (guar.)
$1.13 Jan. 13 Dec 13 to Jan. 15
Little Schuykill Nay. RR.& Coal
$2.125 Jan. 2 Holders of rec. Dec. 6
Morris & Essex
N. Y. Lackawanna dr west.(guar.)
134 Jan. 2 Holders of rec. Dec. 15
134 Feb. 2 Holders of rec. Dec. 31
Northern Pacific (quar.)
Philadelphia Baltimore & Washington- "$1.50 Dec. 31 *Holders of rec Dec. 15
*234 Jan. 10 *Holders of rec. Dec. 30
Philadelphia Trenton (guar.)
Pittsb. Ft. Wayne & Chia., corn.(guar.) 134 Jan. 2 Holders of tee. Dec. 100
134 Jan. 6 Holders of rec. Dee. 100
Preferred (guar.)
ee
Jan. 1 "Holders of rec. Dec. 20
Rome & Clinton (quar.)
se
Jan. 2 *Holders of reo. Dec. 20
Tunnel RR.of St. Louis
"2,35 Jan. 1 *Holders of rec. Dec. 20
Valley RR.(N. Y.)
'$1.50 Jan. 2 *Holders of rec. Dee. 15
West Jersey & Seashore,common
Public Utilities.
Amer. Commonwealths Pow., Cl A (qu.) (1) Jan. 26 Holders of roe. Dec. 31
Jan. 2 Holders of rec. Dec. 15a
$1
Amer. Community Power, corn
$1.50 Jan. 2 Holders of rec. Dec. 15a
$6 first preferred (guar.)
$1.50 Jan. 2 Holders of rec. Dec. 150
$6 preference (guar.)
Amer. ds Foreign Power,$7 pref.(qu.).- $1.75 Jan. 2 Holders of rec. Dec. 15
$1.50 Jan. 2 Holders of rec. Dec. 15
$6 preferred (guar.)
$1.75 Dee. 30 Holders of rec. Dec. 15
Second preferred series A (guar.)
25o. Jan. 2 Holders of rec. Dec. 10
Amer. Gas & Elec.. corn. (guar.)
(f) Jan. 2 Holders of rec. Dec. 10
Corn.(1-50th she. corn, stock)
(f) Jan. 2 Holders of rec. Dec. 10
Corn.(extra 2-10ths sh. corn,stock)
$1.50 Feb. 2 Holders of rec. Jan. 10
Preferred (guar.)
Am.Pow.& Lt.$5 pref. A plain (qu.)__ _ *51.50 Jan. 2'Holders of rec. Dec. 15
*61.50 Jan. 2'Holders of rec. Dec. 15
$8 preferred (guar.)
Amer.States Pub. Serv., corn. A (gu.)_ _ *40c. Jan. 1 *Holders of rec. Dec. 20
*$1.50 Jan. 1 *Holders of rec. Dec. 20
$8 preferred (guar.)
$1.50 Jan. 2 Holders of roe. Dec. 15
Amer.Superpower Corp., 1st Id.
$1.50 Jan. 2 Holders of rec. Dec. 15
$6 preference (guar.)
Jan. 1 *Holders of rec. Dec. 17
(guar.)._
$'1
A
class
Tel.,
&
Tel.
Associated
*134 Jan. 1 Holders of roe. Dec. 17
6% preferred (guar.)
7% preferred (guar.)
"134 Jan. 1 *Holders of rec. Dec. 17
$1
•
Jan. 1 "Holders of rec. Dec. 17
$4 preference (guar.)
500. Jan. 15 Holders of rec. Dec. 31
British Columbia Power. class A (quar.)_
(qu.)_
p1.
$7
Light,
Jan. 2 Holders of rec. Dec. 5
$1.75
&
Power
Cent.States
Central States Utilities Corp., $7 pf.(qu) $1.75 Jan. 2 Holders of roe. Dec. 5
Chic. North Shore & Mllw. pr. lien (qu.) '134 Jan. 1 *Holders of rec. Dec. 15
Chicago Rapid Transit. pref. A (mthly.) "65e. Jan. 1 'Holders of rec. Dec. 16
*600. Jan. 1 "Holden of ree. Dec. 18
Prior preferred B (monthly)
'51.125 Jan. 2 'Holders of rec. Dec. 19
Cincinnati & Sub. Bell Tel.(guar.)
Citizens Water of Washington. Pa.
134 Jan, 2 Holders of rec. Dee. 20
7% preferred (guar.)
Jan. 2 *Holders of rec. Dec. 26
Cleereland Ry core.(quar.)
Commonwealth Utilities, class A (guar.) *37350 Dee. 30 'Holders of rec. Dec. 20
*500. Dee. I *Holders of ree. Dec. 20
Class A (extra)
*3735c Doe. 30 'Holders of reo. Dec. 20
Class B (guar.)
3.500. Dec. 30 *Holders of rec. Dec. 20
Class B (extra)
•$1.75 Jan. 2 *Holders of rec. Dec. 20
Preferred A (guar.)
"$1.50 Jan. 2 'Holders of roe. Dee. 20
Preferred B (guar.)
$1.25 Apr. 1 Holders of rec. Mar. 14
Consumers Power, IS pref.(guar.)
135 Apr. 1 Holders of rec. Mar. 14
6% preferred (guar.)
1.65 Apr. 1 Holders of rec. Mar. 14
8.6% preferred (guar.)
134 Apr. 1 Holders of rec. Mar. 14
7% preferred (guar.)
500. Feb. 2 Holders of ree. Jan. 15
6% preferred (monthly)
500. Mar. 2 Holders of rec. Feb. 14
6% preferred (monthly)
500. Apr 1 Holders of rec. Mar. 14
preferred
(monthly)
0%
55e. Feb. 2 Holden of rec. Jan. 15
6.6% preferred (monthly)
55e. Mar. 2 Holders of rec. Feb. 14
6.6% preferred (monthly)
55e. Apr. 1 Holders of rec. Mar. 14
6.6% preferred (monthly)
Jan. 15 *Holders of rec. Dec. 20
Diamond State Telep.,635% pf.(qu.)._
Jan, 2 Holders of roe. Dec. 15
134
(guar.)
common
Power,
Duke
134 Jan. 2 Holders of rec. Dec. 15
Preferred (guar.)
3i
1
•
Jan. 15
Duquesne Light,5% first Pref.(quar.)_
Electric Power & Light134 Jan. 2 Holders of roe. Dec. 8a
Allotment etre. (full paid) (quar.)...
1.2234 Jan, 2 Holders of rec. Dec.80
Allot. offs.70% paid (guar.)
•$1.75 Jan. 15 *Holders of rec. Jan. 2
El Paso Elec. Co., pref. A (guar.)
*51.50 Jan. 15 *Holders of rec. Jan. 2
Preferred B (quar.)
.56e. Jan. 1 Holders of rec. Dec. 16
Empire Power, partio. stock
"50c. Jan. 2 'Holders of rec. Dec. 15
Fall River Electric Light (guar.)
$1.50 Jan. 1 Holders of rec. Dec. 15
(quar.)._
Pref.
$6
Service
Water
Federal
Jan. 1 Holders of rec. Dec. 15
$1.625
$0.50 preferred (guar.)
$1.75 Jan. 1 Holders of rec. Dec. 15
$7 preferred (guar.)
Jan. 1 Holders of rec. Dec. 20
$1.50
(guar.)
pref.
$6
Power
Foreign Light &
$1.75 Jan. 2 Holders of rec. Dec. 15a
General Pub. Utilities, $7 pref.(quar.)_. $1.50
Jan. 1 Holders of rec. Dec. 15
Georgia Power Co., $6 pref. (qua?.).....
$1.25 Jan. 1 Holders of roe. Dec. 15
1.5 preferred (guar.)
6 "Holders of rec. Dec. 16
Germantown Pass. Ry.(Phil.)((IU.)--31 1.3134 Jan.
Jan. 2 Holders of rec. Dee. 20
Greenwich Water & Gas System, pf.(qu) 134 Dee. 31 *Holders of reo. Dee. 15
"4230
Hackensack Water, pref. A (quar.).._.
Dec. 1 "Holders of tee. Nov.25
"4
Hudson County Gas
Jan. 2 Holders of roe. Dec. 5
Indianapolis Pow.& Lt.,634% pf.(qu.) 134 Feb. 2 Holders of rec. Jan. 16a
International Utilities Corp.,$7 Pi.(CPI.) $1.75
8734e. Jan. 16 Holders of rec. Dec. 300
Class A(quar.)
3.150. Dee. 15 *Holders of rec. Deo. 5
Interstate Natural Gas (No. 1)
$1.75 Jan. 2 Holders of reo. Dec. 5
Interstate Power Co., $7 Pref.(quar.)
Jan. 2 Holders of rec. Dec. 5
$1.50
$6 preferred (guar.)
311.75 Jan. 2 "Holders of rec. Dec. 15
Jamaica Public Service, pref.(quar.)__
2'Holders of rec. Dec. 15
Jan.
(guar.)
pref.
Power,
Kansas Elec.
311.25 Jan. 2 *Holders of too. Dec. 20
Kentucky Securities, corn. (guar.)
311.50 Jan. 15 *Holders of rec. Dec. 20
Preferred (guar.)
*Holders of too. Nov.28
Lexington Utilities, 634% pref.(guar.). •134 Dec. 15 *Holders of too. Dec. 16
Jan. 1
Long Island Ltg., 7% Pf. A (quar.)__..
Jan. 1 *Holders of roe. Dee. 16
6% preferred series B (guar.)
Holden of rec. Dec. 12
Mackay Companies, common (quar.).. 134 Jan. 2 Holden of rec. Dec. 12
Jan. 2
Preferred (guar.)
of rec. Dec. 15
ti
*Holders
2
Jan.
(qua?.)..
Power.
River
Mississippi
Pref.
[you
FINANCIAL CHRONICLE
Name of Company.
When
Per
Cent. Payable.
131.
Books Closed.
Days Inclusive.
Public Utilities (Concluded).
Mohawk & Hudson Power, 1st pref.(qu) $1.75 Feb. 2 Holders of reo. Jan. 15
$1.75 Jan. 2 Holders of rec. Dee. 15
Second preferred (guar.)
Monongahela West Penn Pub. Servioe317340 Jan. 1 *Holders of rec. Dee. 15
6% Preferred (guar.)
. 'Holders of roe. Jan. 15
National Elec. Power Co., corn. A (qui.) "45c
3150. Deo. 31 *Holders of rec. Dec. 20
Common B (guar.)
*134 Jan. 1 *Holders of rec. Dec. 15
6% preferred (guar.)
7% preferred (guar.)
"IA Jan. 1 *Holders of rec. Dec. 15
New England Power Co., pref. (quar.).... *135 Jan. 2 *Holders of rec. Dee. 12
New Jersey Power & Light,$6 pref.(qe.) 311.50 Jan. 2 *Holders of too. Nov.28
$5 preferred (guar.)
311.25 Jan. 2 *Holders of rec. Nov.28
New Jersey Water Co., 7% pref.(guar.) 134 Jan. 2 Holders of rec. Dec. 20
N. Y.Power dr Light. $5 prof.(quar.).. 311.50 Jan. 2 *Holders of rec. Dec. 18
7% preferred (guar.)
'134 Jan. 2'Holders of rec. Deo. 16
New York Steam Corp., $7 pref.(guar.) "$1.75 Jan. 2'Holders of rec. Dec. 15
$6 preferred (guar.)
11.50 Jan. 2'Holders of rec. Dee. 15
New York Telephone Co.,635% pf.(qu.) 134 Jan. 15 Holders of rec. Dec. 20
Northern N. Y. Utilities.
pref.(qu) 134 Feb. 1 Holders of roe. Jan. 10
134 Jan. 1 Holders of rec. Dec. 16
Northport Water Works,Inc..
Pref. (guar.)._
Northwest Utilities, prier lien (quar.).
411.75 Jan. 2 *Holders of rec. Dee. 15
Ohio Cities Water. $6 pref (guar.)
*51.50 Jan. 1 *Holders of rec. Deo. 20
$1.25 Jan. 2 Holders of rec. Dec. 15
Ohio Edison, $5 preferred (guar.)
$1.50 Jan. 2 Holders of rec. Dee. 15
$6 preferred (guar.)
$1.65 Jan. 2 Holders of rec. Deo. 15
$06.60 preferred (guar.)
$1.75 Jan. 2 Holders of rec. Dee. 15
$7 preferred (guar.)
$1.80 Jan. 2 Holders of rec. Doe. 15
57 20 preferred (guar.)
_ 3.1.34 Dec. 31 'Holders of roe. Dec. 20
Pacific Telep.& Teleg.,corn.(guar.)
3.135 Jan. 15 *Holders of reo. Dec. 15
Preferred (guar.)
Paterson & Passaic Gas & Electric
'234 Dec. 1 *Holders of rec. Nov. 25
Penn Central Light & Power, pref.(qu.) *$1.25 Jan. 1 'Holders of rec. Dec. 15
*70o. Jan. 1 'Holders of rec. Dec. 15
$2.80 preferred (guar.)
•13e Jan. 1 *Holders of rec. Dec. 20
Peoria Water Works. pref. (guar.)
Postal Teleg. & Cable Corp., pf. (guar.) 134 Jan. 2 Holders of rec. Dec. 12
134 Jan. 15 Holders of rec. Dec. 31
Power Corp. of Canada. pref.(quar.)..
750. Jan. 15 Holders of rec. Dec. 31
Participating Preferred (guar.)
*30e. Jan. 2'Holders of rec. Dec. 15
Providence Gas (guar.)
*10e. Jan. 2 *Holders of rec. Dec. 15
Extra
Puget Sound Power dr Light, pref. (qtr.) "$1.50 Jan. 15'Holders of rec. Dec. 19
*51.25 Jan. 15 *Holders of rec. Dec. 19
Prior preferred (guar.)
'62 35c Jan. 15 *Holders of rec. Dec. 23
Quebec Power (quar.)
Queensborough Gas dr Elec., pref. (qu.)_ "135 Jan. 1 *Holders of tee. Dec. 15
Rhine Westphalia Electric Power312.14 Dee. 17 *Holders of tee. Deo. 10
American shares
Rochester Telephone, common (qua?.).. *$1.25 Jan. 1 *Holders of rec. Dec. 13
'134 Jan. 1 'Holders of rec. Dec. 13
6)4% preferred (guar.)
*134 Dee. 15 *Holders of rec. Nov. 29
San Joaquin Lt. dr. Pr., pref. A (qu.)
*134 Dee. 15 *Holders of rec. Nov. 29
Preferred B (guar.)
*134 Dec. 15'Holders of rec. Nov.29
Prior preferred (guar.)
3,134 Dec. 15 'Holders of rec. Nov. 29
Prior preferred A (guar.)
*3735c Jan. 1 'Holders of rec. Dee. 15
Saranac River Power. corn.(guar.)
"134 Jan. 1 *Holders of reo. Dec. 15
Preferred (qua?.)
Dec. 1 *Holders of roe. Nov.25
*4
South Jersey Gas & Elec. at Traction
500. Jan. 15 Holders of rec. Dec. 20
Southern Calif. Edison, orig. pref.(qu.).
3434o Jan. 15 Holders of rec. Dec. 20
Preferred series C (guar.)
135 Jan. 15 Holders of roe. Dec. 20
Southern Canada Power, pref. (quar.)
Springfield (Mo.) Gas & El., pref (qu.)_ $1.75 Jan. 2 Holders of rec. Dec. 15
Southwestern Gas dr El., 7% pf.(qu.).. *134 Jan. 1 *Holders of rec. Dec. 15
Jan. 1 *Holders of roe. Dee, 15
*2
8% pref.(guar.)
Southwestern Lt. & Pr., $6 pref. (gu.).... *11.50 Jan. 2 *Holders of rec. Dec. 15
Toledo Edison Co.,7% pref.(monthly). 58 1-3c Deo. 1 Holders of rec. Nov. 15a
6% preferred (monthly)
50c..Dee. 1 Holders of rec. Nov. 15a
41 2-30 Dec. 1 Holders of rec. Nov. 150
5% Preferred kmonthle)Twin City Rapld Transit, MinneapolisCommon (Pay. In notes & scrip)
Jan. 15 Holders of reo. Dec. 31
2
134 Jan. 2 Holders of rec. Dec. 12
Preferred (guar.)
Union Elec. Lt.& P.(Mo.) 7% pf.(qu.) *134 Jan. 2 *Holders of tee. Dec. 15
Jan. 2 *Holders of roe. Dec. 15
6% Preferred (guar.)
Union El. Lt.& Pow.(Ills.),6% Pf.(q11.)
Jan. 2'Holders of roe. Doe. 15
Union Passenger Ry.(Phila.)
Jan. 1 *Holders of rec. Dee. 15
'44
Union Traction (Phila.)
*$1.50 Jan. 1 *Holders of reo. Dec. 15
United Lt.& Pow.. new corn. A &B (qu.) *250. Feb. 2 *Holders of reo. Jan. 16
Old common A & B (guar.)
"51.25 Feb. 2 *Holders of rec. Jan. 15
$6 preferred (guar.)
"$1.50 Jan. 2 *Holders of rec. Dec. 15
United Public: 11th,, $6 pref.(qua?.)._ *$1.50 Jan. 2 *Holders of rec. Dec. 15
Utah Power & Light, $7 pref. (quar.)... $1.75 Jan. 2 Holders of rec. Dee. 5
$1.50 Jan. 2 Holders of rec. Dec. 5
$6 preferred (guar.)
Virginia Public Service,7% pref.(qu.).. •1 5.1 Jan. 1 *Holders of rec. Doe, 15
*135 Jan. 1 'Holders of rec. Dee. 15
6% preferred (guar.)
Western Pr., Lt.& Tel.,7% pf.(qu.).. '154 Jan. 2 "Holders of rec. Dee. 15
Jan. 2'Holders of rec. Dee. 15
6% preferred (qua?.)
Jan. 15 *Holders of rec. Dee, 25
"2
Western Union Telegraph (guar.)
*Holders of reo. Dee. 20
Westmoreland Water, $6 pref.(qua?.) •$1.50 Jan.
Banks.
Bank of America Nat'l Moen.(guar.).- $1.125 Jan. 2 Holders of roe. Doe. 17a
Bancamerica-Blair Corp.(qua?.)
Jan. 2 Holders of reo. Dec. 10a
$1
Chase National (guar.)
Chase Securities Co., guar.)
Jan. 2 *Holders of roe. Dee. 15
Chatham Phenix Nat. Bk.& Tr.(guar. 'Si
Jan. 2 Holders of tee. Dec. 15
$1
Manhattan Co.(guar.)
National City (guar.)
Jan. 1 Holders of roe. Dec. 8
$1
National City Co.(guar.)
City Bank Farmers Trust Co.,(guar.).
eel
Jan. 1 *Holders of roe. Dec. 20
dr
(guar.)
Trust
Bank
Public Nat.
Jan. 5 Holders of reo. Dec. 31
3
Woodelde NationaL
Trust Companies.
Banat Commerciale Itallana (qua?.)...
Bankers (guar.)
Guaranty (guar.)
Manufacturers Trust (guar.)
Midwood
United States (guar.)
Fire Insurance.
Halifax Fire Insurance
R098113 Insurance (quar.)
*234 Jan. 2 *Holders of rec. Dee. 15
75o. Jan. 2 Holders of roe. Dec. 11
Doe. 31 Holders of roe. Deo. 5
5
Jan. 2 *Holders of too. Deo. 15
3131
re
Dec. 31 *Holders of rec. Dee. 22
Jan. 2 *Holders of roe. Dec. 24
411
60c. Jan. 2 Dec. 11 to Jan. 1
315o. Jan. 2 *Holders of roe. Dee, 16
Miscellaneous.
62350 Jan. 1 Holders of tee. Dec. 18
Abbot Laboratories (guar.)
*250. Dec. 15 *Holders of roe. Dec. 1
Acme Wire
Aldred Invest. Trust-Dividend deferred
Allied Newspapers, Ltd'w254 Dee, 16 *Holders of roe. Nov.26
Am.dep refs. ord. reg. shs
*87 35o Jan. 1 'Holders of reo. Dee. 15
Allied Products, corn. A (guar.)
3.43340 Jan. 1 *Holders of rec. Dec. 20
Allied Telep. Util., pref. (guar.)
American Aggregates, pref. (guar.) -- 41.75 Feb. 2 *Holders of rec. Dee. 2')
Holders of rec. Nov. 28
Am.DrIt.dt Cent') Corp., 1st pref.(qu.). $1.50 Dee.
51.50 Jan. 1 Holders of rec. Dee. 16
Amer. Car & Fdy., corn.(guar.)
Holders of rec. Dee. 16
Jan.
34
Preferred (guar.)
134 Jan. 2 Holders of rec. Dec. 15
American Cigar Co., Pref.(guar.)
"135 Jan. 2"Holders of rec. Dec. 19
American Express (guar.)
*Holders of rec. Nov.25
*50e Dec.
American Hosiery (e
'40c. Jan 1
Amer. Railway Trust
Shares
liar.)Holders of roe. Dec. 110
2
Jan.
750.
(qua?.)
American Snuff, corn.
25c. Jan. 2 Holders of rec. Dec. lla
Common (extra)
135 Jan. 2 Holders of rec. Dee, ha
Preferred (qua?)
*750. Jan. 15 "Holders of reo. Jan. 2
Amer.Steel Foundries, corn.(quilt.)
*134 Dec. 31 *Holders of rec. Dec. 15
Preferred (guar.)
Amer. Utilities & Gen'l Corp.,ol. A (qu.) 32340. Dec. 1 Holders of rec. Nov.22
5o, Dec. 1 Holders of reo. Nov. 22
Class B (guar.)
75o Dec. 1 Holders of ree. Nov.22
$3 preferred (guar.)
Jan. 2 *Holders of rec. Dec. 15
"75c
American 'Wringer, corn.(qua?.)
*1 14 Jan. 1 'Holders of tee. Dec. 15
Andover Realty, pref. (guar.)
*rob Dec. 29 *Holders of roe. Dec. 5
Angio-Persian 011 Amer. receipt/
*134 Dee. 1 'Holders of rec. Nov.28
Associated Rayon,6% ere:.(quar.)
51
Jan. 2 Holders of ree. Dec. 20
Auburn Automobile (guar.)
Jan. 2 Holders of too. Dee, 20
e2
Stock dividend
Dec. 16 Holders of rec. Dec. 5
2
Autocar Co.. pref. (guar.)
3 134 Jan. 2
'
Babcock at Wilcox Co.(guar.)
300. Dec. 31 Holders of roe. Dee. 15a
Bancroft (Jos.) & Sons Co., corn.(guar.)
DEC. 6 1930.]
Name of Company.
FINANCIAL CHRONICLE
Per
When
Cent. Payable.
Boats Closed.
Days Inclusive.
Miscellaneous (Conanued).
Bandini Petroleum (monthly)
*10c. Jan. 20 *Holders of roe. Dec. 31
Beatrice Creamery. corn.(guar)
•s1
Jan. 1 "Holders of rec. Dec. 15
Preferred mum.)
"1% Jan. 1 *Holders of rec. Dee. 15
Belding Corticelli, Ltd., corn.(guar.)... 1% Feb. 2 Holders of
rec. Jan. 15
BeIgo Canadian Paper, pref. (quar.)_
134 Jan. 2 Holders of rec. Dec. 3
Beneficial Loan Society, corn.(guar.).
'Sc. Dec. 1 *Holders of rec. Nov.20
Biltmore Hats, Ltd. pref.(quar.)
*1% Dec. 15 *Holders of rec. Nov. 15
Bird & Son, Inc.(quay.)
"25c. Jan. 2 *Holders of rec. Dec. 26
Hoeft Mills Mar.,
*3
Dec. 1 'Holders of roe. Nov.15
Borden Company (stock dividend)
e3
Jan. 15 Holders
Boston Personal Property Treat (quar.) *25c. Dec. 30 *Holders of rec. Dee. 30
of rec. Dec. 15
Bradley Knitting, corn.(quar.)
*25e. Dec 1
First and second pref. ,quar.)
•134 Dee 1
Brewing Corp. of Canada, pref.(qua?.). 62)4e Jan. 2 Holders of rec.
Dec. 15
British Mtge. & Trust Corp
*6
Jan. 2 "Holders of rec. Dee. 15
Brunswick-Balke-Collender, pref. (qu1.)- '1)4 Jan. 1 'Holders of
Dec. 20
Calamba Sugar Estates, corn.(guar.).- *400. Jan. 2 *Holders of rec.
rec. Dec. 15
Preferred (qua?.)
*35e. Jan. 2 *Holders of rec. Dee. 15
California Ink, clam A dr B (qua?.)
*50c. Jan. 2 *Holders of rec. Dee. 20
Canada Malting (quar.)
117)4c Dec. 15 Dec.
Canadian Canners, Ltd., corn. (guar.)... *25e. Jan. 2 "Holders1 to Dee. 13
of rm. Dec. 15
First preferred (guar.)
*1% Jan. 2'Holders of rec. Dec. 15
Convertible preferred (guar.)
•25e. Jan. 2 *Holders of rec. Dec. 15
Canadian General Elec., corn.(quar.)
*8734c Jan. 1 *Holders of ree. Dec. 13
Common (extra)
*$1
Jan. 1 *Holders of rec. Dec. 13
Preferred (quar.)
*75o. Jan. 1 *Holders of rec. Dee. 13
Cannon Mills (qua?.)
*40e. Jan. 1 *Holders of rec. Dec. 18
Capital City Product (quar.)
*34e. Dec. 31 *Holders of rec. Dec. 15
Celanese Corp. of Amer., 7% partici. Pf. 3% Dec. 31 Holders of
rec. Dec. 15
7% Prior preferred (Qua?.)
134 Jan. 1 Holders of rec. Dec. 15
Central Aguirre Associates (gum)
37)4c Jan. 2 Holders of roe. Dec. 16
Central Manhattan Prop. class A (qu.)
•54e. Dec. 1
Chicago Dock & Canal (otter.)
Dec. 1 *Holders of roe. Nov.28
Chic June. Rys.& lJn, Stock YardsCommon (qua?.)
"211 Jan. 1 *Holders of rec. Dee. 15
Preferred (quar.)
•1.% Jan. 1 *Holders of rec.
Cleveland Cliffs Iron, corn (quer.)--- •31 Dec. 2 *Holders of rec. Dec. 15
Dec. 10
Preferred (guar.)
$1.25 Dec. 15 Holders of rec. Doe. 5
Clorox Chemical, class A & B (qu.)
*50o. Jan
*Holders of rec. Dee. 20
Cluett, Peabody & Co., pref.(guar.)._
13.4 Jan. 2 Holders of ree. Dec. 20
Coleman Lamp & Stove, com.-Dividen d omit ted
Colgate-Palmolive-Peet Co pref.(qu.). 1% Jan,
1 Holders of rec. Dec. 10
Colonial Chair, pref.(guar.)
*4334c Jan. 1 *Holders of roe. Dee. 15
Columbia Pictures (quar.)
*37)4e Jan. 2 *Holders of rec. Dec. 10
Commercial Credit(New On.) pf.(qu.)_ *50c Dec. 31 "Holders
of rec. Dec. 20
Conde Nash Publications, con).(quar.)_
50e Jan. 2 Holders of rec. Dec. 20
Cense'. Mining & Smelt.(Canada)
.$1.25 Jan. 15 *Holders of rec. Dee. 31
Bonus
"35
Jan. 15 *Holders of rec. Dec. 31
Continental Baking Corp., prof.
Jan. 1 *Holders of rec. Dec. 15
(quar.) *2
Continental Security HoldingPreferred (No. 1) (quar.)
*$1.25 Dec. 1 'Holders of rm. Nov.29
Cooper-Bessemer Corp., cool. tquar.)
50e. Jan, 1 Holders of rec. Dec. 10
Preferred (quar.)
754. Jan, 1 Holders of rec. Dec. 10
Corroon Jr Reynolds, cony, pref.(qu,)
$1.50 Jan. 1 Holders of reo. Doe. 19
Crowley Milner & Co.(quar.)
*50c. Dee. 31 *Holders of rec. Dec. 10
Crown Zellerbach Corp., oom.-dividend °mitt ed.
Cuba Company, preferred
'3)4 Feb. 2 *Holders of rec. Jan. 15
Cuban Tobacco, common
Dec. 31 Holders of roe. Dec. 15
Preferred___.
2)4 Dec. 31 Holders of rec. Dec. 15
Cutler-Hammer, Inc.(qua?.)
. 88e. Dec. 15 Holders of rm. Dee. 5
Deco Refresh., Inc., corn,(guar.)
"25c. Jan. 2 *Holders of rec. Dec. 24
Preferred (quar,)
'87)-4c Jan. 2'Holders of ree. Dec. 24
Dempster Mill Mfg., pref.(quar.)
'134 Dee. 1 *Holders of rec. Dec. 24
Detroit Electric, pref. A (quar.)
•52%c Jan. 2 *Holders of rec. Dec. 20
Doehler the Casting. 7% prof.(Qua?,)
•1)( Jan. 2 'Holders of rec. Dee. 20
$7 preferred (guar.)
"$1.75 Jan. 2 *Holders
rec. Dec. 20
Dominion Envelop & Carton 1st p1.(qu.) s15.4 Dec. 1 *Holders of
of roe. Nov.24
Dominion Stores, Ltd. (quar.)
*30e. Jan. 2 *Holders of roe. Dec. 15
Dominion Textile, corn.(guar.)
*81.25 Jan. 2 *Holders of rec. Doe. 15
•1}.4 Jan. 15 *Holders of
Preferred (quar.)
rec.
Douglas(W. L.) Shoe, pref.(guar.).- 1% Jan. 1 Holders of rec. Dec. 31
Dunham (J. H.)& Co., corn.(quar.)--- •1% Jan. 1 *Holders of rec. Dec. 15
Dec. 18
First preferred (quar.)
"1% Jan. 1 *Holders of rec. Dec. 18
•1k Jan.
Second preferred (qua?.)
1 Holders of rec. Dec. 18
Duplan Silk Corp., prof. (guar.).2
Jan. 2 Holders of rec. Dec. 15
Dutton(A.C.) Lumber Corp.,com.(qu.) "1% Dec. 31 'Holders of rec. Dee.
31
el% Dee. 31 *Holders of
Preferred (quar.)
rec. Dec. 31
Early & Daniel, corn.(qua?.)
*50c. Dec. 31 *Holders of
•154 Doe. 31 *Holders of rec. Dec. 20
Preferred (quar,)
rec. Dee. 20
Eastern Rolling Mill-Dividend omitted.
Eastern Steamship lAnes, corn. (qua?.).. .50o. Jan. 2 *Holders of rm. Dec. 20
First preferred (guar.)
'
1)4 Jan. 2 *Holders of rec. Dee. 20
No-par preferred (guar.)
•87440 Jan. 2 *Holders of rec. Dee. 20
Ecuadorian Corp.,00M.(guar.)
6e. Jan. 1 Holders of rec. Dee. 10
Preferred
Jan. 1 Holders of rec. Dec. 10
3
•1% Jan. 1 *Holders of roe.
Electric Auto-Lite, common
Dec. 15
Preferred (guar.)
Jan, 1 *Holder. of rec. Dec. 15
•1
Emer-on Bromo Seltzer el. A & B
•50e. Jan. 2 *Holder- of rec. Dec. 15
Preferred (gum)
*500. Jan. 2 *Holders of rec. Dec. 15
Endicott-Johnson Corp., corn.(qua?.)
$1.75 Jan. 1 Holders of rec. Dec. 18
Preferred (guar.)
134 Jan. 1 Holders of rec Dee. 18
Erskine-Danforth Corp., pref.(qua?.).. *2
Jan. 1 *Holders of roe. Dee. 23
Exeter Oil class A (guar.)
*1)4e Dee. 20 *Holders of rec. Nov.30
Famous Players Canadian Corp.(quar.) *50e. Dec. 27 *Holders of rec. Dec. 12
Fear (Fred) Jr Co., common ,quar.).2% Dec. 1
Federal Bake Shop, pref. (guar.)
Jan. 1 *Holders of rec. Dec. 8
Federal Mogul Corp. gum.)
be,Jan. 2 *Holders of rec. Dee. 15
Federal Term Cotta, corn.(quar.)
Dec. 15 *Holders of rec. Doe. 5
"2
Common (extra)
Dec. 15 *Holders of roe. Dee. 5
*2
Dee. 24 *Holders of rec. Dec. 15
Ferro Enameling, class A (qua?.)
•61
First American Corp.(quar,).
5e. Jan. 2 Holders of rec. Dec. 16
First Custodian Shares, corn.(qua?.)...
140. Dec. 15 Holders of coup. No. 1
Formica Insulation (guar.)
*500. Jan, 1 'Holders of roe. Dee, 15
Foundation Co. of Canada corn.,(qua?.)
25e. Feb. 14 Holders of roe. Jan. 31
Franklin Railway Supply (quar.)
Dec. 15 *Holders of rec. Dec. 5
*1
Dec. 20 *Holders of rec. Dee. e
*$1
Frick Co.. Inc., common
Common (extra)
Dec. 20 *Holders of me. Dee. 8
$1
Preferred (quar.)
"75e. Jan. 1 *Holders of rec. Dee. 20
•400. Jan. 1 *Holders of reo. Dm. 20
Gardner -Denver Co., corn (Gear.)
Preferred (quar.)
'1)4 Feb. 1 *Holders of reo. Jan. 20
"40c. Jan. 24 *Holders of rec. Dec. 19
General Electric (quar.)
•150. Jan. 24 *Holders of rec. Doe. 19
Special stock (quar.)
1% Jan. 2 Holders of roe. Dec. 15a
General Mills, pref. (quar.)__.
General Printing Ink, corn.(quar.)
*62Sic Jan, 2 *Holders of roe. Dec 16
"$1.50 Jan. 2 'Holders of roe. Dec. 16
Preferred (Qum)
'
General Steel Castings, pref. (quar,)...
Si 60 Jan. 2 *Holders of lee. Dec. 18
*1% Dec. 31 'Holders of rec. Dec. 20
General Tire & Rubber, pref. (quar.)
*81.75 Dec. 15 *Holders of roe. Dec. 5
Giant Portland Cement, Preferred
Gold Dust Corp., $6 Pref. (guar.).- $1,50 Dee. 31 Holders of rec. Dec 17a
•$1.50 Jan. • 1 *Holders of roe. Dec. 3
Goldblatt Bros. (quar.)
Goodyear Textile Mills, pref.(guar.)... '134 Jan. 2 *Holders of rec. Dee. 20
Goodyear Tire & Rub.of Calif., pf.(eu.) •$1.75 Jan. 2 *Holders of roe. Dec. 20
Jan. 2 "Holders of rec. Dee. 19
"2
Goulds Pumps, Inc., corn.(guar.)
'
13.4 Jan. 2 'Holders of rec. Dec. 19
Preferred (Qum)
•750. Dec. 31 *Holders of roe. Dec. 15
Granite City Steel (qua?.)
25e. Jan. 1 Holders of rec. Dec. 12a
Grant(W. T.) CO.(quar.)
•25o. Jan. 2 *Holders of roe. Dec. 15
Graymur Corp. (qua?.)(No. 1)
*50o. Jan. 2 *Holders of ree. Dec. 15
Curd (Chas.) & Co., corn.(quar.)
•1g Jan.
*Holders of rec. Dec. 15
Preferred (qua?.)
Jan. 2 Holders of rec. Dee. 22
Hahn Dept. Stores,634% pref.(qua?,).
Jan. 2 *Holders of roe. Dec. 20
Hammermill Paper,6% pref.(guar.)...
Dec. 1 *Holders of rec. Nov.29
Harriman Investors Fund (guar.)
Jan. 2 *Holders of rec. Dec. 15
Hazel Atlas Glass (quar.)
Jan, 2 *Holders of reo. Dee, 15
Extra
Dec. 15 *Holders of rec. Dec. 1
Hearst Consol. Publications, coin.(qu.).
Dee. 15 *Holders of rec. Dec. 1
Class A (qua?.)
Dee, 31 *Holders of rect. Doe. 13
Hollinger Consol. Gold Mines
Dec. 31 *Holders of roe. Dec. 13
Extra
Dee, 31 *Holders of tee. Dee, 15
Holly Oil (quiz.)
Dee. 10 *Holders of rec. Nov.29
Honolulu Plantation (monthly)
Dee. 10 *Holders of roe. Nov. 29
Extra
Name of Company.
3665
Per
When
Cent. Payable.
Book. Closed.
Daps inclusion
Miscellaneous (Cont(nued).
Horlicks, Inc., 1% pref. (qua?.)
*I73ic Dec. 1 *Holders of roe. Nov.25
HYgrado Lamp, corn.(qua?.)
*25o. Jan. 2 *Holders of rec. Dec. 10
Common (extra)
'31
Jan. 2'Holders of me Dec. 10
Preferred (quar.)
*1% Jan. 2'Holders of rec. Dee. 10
Ideal Financing Assn.. A (qua?.)
"12)4c Jan. 2 *Holders of roe. Dec 15
Preferred (quar.)
•$2
Jan. 2 *Holders of rec. Dec. 15
Convertible preferred (quar.)
*50o. Jan. 2 *Holders of roe. Dec. 15
Imperial 011, Ltd., bearer shares
62)4o.
Holders of coup. No.27
Ingersoll-Rand Co., preferred
3
Jan. 2 Holders of rec. Dec. 96
International EQuitiel, class A (quar.). 87)4e. Jan. 2 Holders of
rec. Dee. 20a
International Shoe, corn.(guar.)._
*75e. Jan. 1 *Holders of rec. Dee. 15
Preferred (monthly)
*50e. Jan. 1 *Holders of rec. Dec. 15
Preferred (monthly)
*50e. Feb. 1 *Holders of rec. Jan. 15
Preferred (monthly)
*50c. Mar. 1 *Holders of reo Feb. 14
Preferred (monthly)
*50c. Apr. 1 *Holders of rec. Mar. 14
Preferred (monthly)
*50e. May 1 'Holders of rec. Apr. 15
Preferred (monthly)
*50o. June 1 *Holders of rec. May 15
International Tea Store, Ltd.
Amer, dep, rota, for ord. reg. abs.... *to12 Jan. 12 "Holders of rec. Dec. 12
Interstate Bakeries, corn.(quar.)
*25c. Jan. 1 *Holders of rec. Dec. 15
Preferred (qua?.)
• 81.625 Jan. 1 'Lliolders of rec. Dec. 15
Interstate Equities, A ((mar.)
*87)4c Jan. 2 'Holders of rec. Dec. 20
Intertype Corp., 1st pref
*2
Jan. 2'Holders of rec. Dec. 15
Second preferred
"3% Jan. 2 'Holders of rec. Dec. 15
Investment Fund of N..1. (quar.)
15c. Dec. 15 Holders of rec. Dee. 10
Investors Corp.(R.I.) eonv. pf.(Qum.). *$1.50 Jan. 2 *Holders of roe. Dec. 20
Second preferred (qua?.)
*81.50 Jan. 2 *Holders of rm. Dee. 20
Kaynee Co.,common(guar.)
*50e. Dec. 31 *Holders of rec. Dec. 20
Common (extra)
•1244e Dec. 31 *Holders of roe. Dec. 20
Preferred (guar.)
•1% Dec. 31 *Holders of rec. Dec. 20
Keith (Geo. E.) Co., 1st pref.(qua?.).. '134 Jan. 2 'Holders of rec. Dec.
15
Kellogg (Spencer) & Sons, Inc.(guar.)._
20c. Dee, 31 Holders of rec. Dee. 15
Key Boiler Equip. (quar.)
25c, Jan. 2 Holders of tee. Dee, 26
Kilger(Geo.) & Sons, Inc., pref.(qua?.) *2
Dec. 1 'Holders of lee. Nov.21
Kohut(Joseph) Co.,class A-Dividend o milted
Kroger Grocery & Baking, 1st pfd.(qu.)
Jan. 1 *Holders of roe. Doe. 20
Lambert Co.(quar.)
"32
Jan. 2 *Holders of rec. Dec. 17
Landed Bank & Loan (quar.)
•$2.50 Jan. 2 *Holders of me. Dec. 15
Leath & Co., pref. (guar.)
*87%c Jan. 1 *Holders of rm. Dec. 15
Lehigh Portland Cement,corn.(guar.)._ "25c Feb. 2 *Holders of ree. Jan. 14
Leslie-Calif. Salt (qua?.)
*20o Dee. 1 "Hoiden of rec. Dec. 15
Liquid Carbonic (quar.)
41
Feb. 1 *Holders of rec. Jan. 20
Lorillard (P) Co., Prof. (guar.)
154 Jan. 2 Holders of rec. Dec. 15
Louisiana Nay.Jr Fish
•$8
Dec. 20
Lupton(D.) Sons Co., pref.(quar.)
•154 Jan. 1
M-A-C Plan, Inc. of Rhode Island, pref.
300 Dec. 15 Holders of rec. Dee. 8
Mack Trucks, Inc., corn
Dec. 31 Holders of rec. Dec. 15
$1
Macwhyte Co., pref.(quar.)
'2
Nov.29 *Holders of reo. Nov.28
ManIschewitz (B.) Co, prof.(4=4
"1% Jan. 1
Marlin-Rockwell Corp.,corn.
*50e. Jan. 2 *Holders of rec. Dec. 20
•$2
Common (special)
Jan. 2 *Holders of rec. Dec. 20
May Oil Burner, pref. B (quar.)
"17)4c Jan. 1 *Holders of roe. Dec. 15
Maytag Company. common-Dividend omitte d.
McC, II-Frontenac Oil, pref. (qua?.).... *1% Jan. 15 'Holders of rec. Dec. 31
Mercantile Discount Corp., Pf. A (Qua?.) *50c. Jan. 2'Holders of rec. Dec. 15
Metropolitan Paving Brick, tem.(extra)
50c. Doe. 20 Holders of rec. Dee. 5
Mexican Petroleum. corn. (quar.)
*3
Jan. 20 *Holders of rec. Dec. 31
Preferred (quar.)
*2
Jan. 20 'Holders of roc Dec 31
Midland Grocery Co., pref
'3
Jan. 1 *Holders of rec. Dee. 20
Mills Factors Corp., Cl, A Jr B (qua?.).. *75e. Jan. 2 *Holders of rec. Dee. 20
Mitchell(J. T.) & Co.. Prof.(quar.).... "15
4 Jan. 2 *Holders of rec. Dec. 16
Mock, Judson. Voehringer Co., pi.(qu.) 134 Jan. 2 Holders of rec. Dec. 15
Moloney Electric, corn. A (extra)
$1
Dee. 15 Holders of rec. Dee. 1
Monroe Chemical, pref. (guar.)
"37)4c Jan. 1 'Holders of rec. Dec. 15
Morrison Brass Corp., pref. (quar.)
1)-a Doe. 1 Holders of rec. Nov. 26
Motor Products Corp., corn. (euar.)
"500. Jan. 2'Holders of rec. Dec. '10
Mountain Producers Corp.(quar.)_ _ _
40e. Jan. 2 Holders of me. Dec. 154
Mount Royal Hotel, pref
•2
Myers(F. E.) & Bros., corn.
50e. Dec. 31 Holders of ree. Dee. 156
Preferred (quar.)
13.4 Dec. 31 Holders of rec. Dec. 156
National Battery. pref. (guar.)
55e. Jan. 2 Holders of rec. Dec. 170
el% Dec. 31 *Holders of rec. Dec.
National Casket, Prof.(quar.)
15
Nat. Mfg & Stores, class A (qua?.)
"1% Jan. 2 'Holders of rec. Dec. 15
Fir t preferred (guar.)
"134 Jan. 2 *Holders of roe. Dec. 15
National Oxygen, corn,(quar.)
"250. Jan. 1
Class A (qua?.)
.51314c Jan
1
National Standard Co.(quar.)
75c. Jan. 2 Holders of rec. Dec. 19
National Steel Car Corp. (qua?.)
50e. Jan. 2 Holders of rm. Dec. 17
National Tea, corn. (guar.)
254. Jan, 1 Holders of rm. Dee. 13
Nevada Consolidated Copper Co.(qu.).
25e. Dec. 31 Holders of rm. Dec. 12
New York Investors, Inc., 1st pref
3
Jan. 15 Holders of rec. Jan. 5
Niles-Bement-Pond Co. (extra.)
*25e. Dec. 31 'Holders of rec. Dee. 20
Noblitt Sparks Indus., corn. (quar.)._
•75e. Jan. 1 'Holders of rec. Dec. 20
Common (pay. in corn, stock)
*1134 Jan. 1 *Holders of rec. Dec. 20
Northern Discount (qua?.)
*z50e. Jan. 1 *Holders of rec. Dec. 15
Novadel-Agene Corp., COM.(guar.).- 81
Jan. 2 Holders of rm. Dm. 15
Common (extra)
25e. Jan. 2 Holders of rec. Dec. 15
Preferred (quar.)
1% Jan. 2 Holders of rm. Dec. 15
Dal) r Fly. & Land (monthly)
*15o. Dec. 15 *Holders of rm. Dec. 12
Ohio Finance, common (guar.)
•50o. Jan. 1 *Holders of rec. Dm. 10
Common (payable in common stock).. •fl.
Jan. 1 *Holden) of rec. Dec. 10
Ohio Seamless Tube, Prof. (guar.)
134 Jan. 1 Dee. 16 to Jan. 1
011 Royalty Invest. pref.(monthly).... •100. Dm. 15 'Holders of rec. Nov.29
Oliver Farm Equipment, pref. A-Divid end o mined
Onomea Sugar (monthly)
*20e. Dee. 20 *Holders of rec. Dec. 10
Ontario Silknit, prof.(quar.)
•13.4 Dec. 15 *Holders of rec. Dec. 1
Orange Crush. Ltd., Prof. A (quar.)-1.1% Jan. 1 *Holders of rec. Dec. 15
Pedigo-Lake Shoe, pref. (quar.)
*2
Dec. 1 "H- Idol's of rec. Nov.29
Penney (J. C.) Co., cool.(quar.)
75c Dee. 31 Holders of rec. Dec. 20
Preferred (quar-)
1% Dee, 31 Holders of roe. Dec. 20
Pennsylvania Glass Sand, pref.(quar,)._ "61.75 Jan. 2 *Holders of rm. Dec. 15
Peoples Coll. Corp.,common
'81.75 Dec. 31 *Holders of rec. Dec. 20
7% preferred
$1.75 Dec. 81 *Holders of rec. Dec. 20
8% preferred
Dec. 31 *Holders of rec. Dec. 20
$2
Perfection Stove (monthly)
*37%c Dec. 1 *Holders of rm. Nov. 20
Phelps Dodge Corp.(quer.).
•50e. Jan. 2 *Holders of rec. Dec. 13
Pie Bakeries of America. class A (quar,)
50e. Jan. 2 Holders of rec. Dee. 15
Preferred (quar.)
1% Jan. 2 Holders of rec. Dee. 15
Pierce Manufacturing (guar.)
*2
Dec. 1 *Holders of rec. Nov.20
Pines Wintertront Co.(qua?.)
25e. Dm. 1 Holders of rec. Nov. 17
Plymouth Cordage (quar.)
*1% Jan. 20 *Holders of roe Dec. 31
Port Alfred Pulp Jr Paper. prof.(qua?.).. ..
1 1M Dee. 15 'Holders of rec. Dec. 3
Port Hope Sanitary Mfg.(quar.)
'50c. Dec. 1 'Holders of rec. Nov.28
Pressed Metals of Amer.(guar.)
•12)4e Jan, 2 *Holders of rm. Dec. 15
Price Bros.. Ltd.. corn. (guar.)
*50c. Jan. 2'Holders of rec. Dec. 15
Preferred (quar.)
•1% Jan. 2 *Holders of rm. Dec. 15
Prince & Whitely Trading Corp.-Div. omitte d
Reliance Mtg.(Ills.) pref.(qua?.)
•134 Jan. 1 *Holders of rec. Dec. 22
Retail Properties. Inc.. $3 pref. (quar.)_ •75c.
Reynolds (It. J.) Tobacco,corn.(qua?.).. '75e. Jan. 2 *Holders of rec. Dec. 18
Common B (quar.)
"75c. Jan. 2 *Holders of rec. Dec. 18
•55c. Jan. 1 *Holders of rec. Dec. 13
Hike Kumler Co.. corn. (quay.)
•1% Jan. 1 *Holders of rm. Dec. 13
Preferred (quar.)
Ross Gear Jr Tool. corn. (guar.)
•50e. Jan. 1 *Holders of rec. Dec. 20
Royal Baking Powder, corn.(quar.)....
250. Jan. 2 Holders of rec Dec. 8a
1% Jan. 2 Holders of roe. Dec. 8a
Preferred (qua?.)
*13.4 Dee, 15 *Holders of rec. Nov. 29
Ruddy (E. L.) Co., pref.(quar.)
Safety Car Heating dr Lighting (quar.)._ *$2
Dee. 23 'Holders of rec. Dec. 10
81.25 Jan, 1 Holders of rec. Dec. 12
Safeway Stores, corn.(quar.)
1)4 Jan. 1 Holders of rm. Dec. 12
7% preferred (quar.)
1% Jan. 1 Holders of roe. Dec. 12
6% preferred (qua?.)
50e, Mar.20 Mar. 10 to
St. Joseph Lead Co.(qua?.)
Mar.20
St.'Maurice Valley Corp., pref.(quar.)... 1% Jan. 2 Holders of rec. Dec 12
25e. Jan. 1 Holders of rec. Doe. 10
St. Regis Paper, corn.((Bran)
1% Jan. 1 Holders of roe. Dec. 10
Preferred (qua?.)
*10e. Jan. 2 *Holders of rm. Dec.
Salt Creek Consol. 011 (quar.)
"20e. Dec. 15 *Holders of rec. Dec. 15
San Carlos Milling (monthly)
7
50c. Jan. 1 Holders of rm. Dee. 15
Sangamo Electric Co.. corn.
Preferred tquar.)
$1.75 Jan. 1 Holders of ree. Dec.
15
*2
Schulte Retail Stores, pref.(guar.)
Jan. 2 *Holders of rec. Dec.
15
3666
Name of Company.
[VOL. 131.
FINANCIAL CHRONICLE
IV hen
Per
Cent. Payable.
Books Closed.
Days Inclusive.
Miscellaneous (Concluded).
•13f Jan. 1 *Holders of rec. Dec. 15
Schulze Baking, pref.(quar.)
*750. Jan. 1 *Holders of rec. Dec. 15
Convertible preferred (guar.)
*50c. Jan. 1 *Holders of rec. Dec. 15
ScovM Manufacturing (guar.)
280. Dec. 15 Holders of coupon No. 1
Second Custodian Shares, corn.(guar.).*334 Dec. 1 *Holders of roe. Nov.29
Seven Baker Bros.. pref
350. Jan. 2 Holders of roe. Dec. 12
South Porto Rico Sugar, corn.(quer.)-2
Jan. 2 Holders of rec. Dec. 12
Preferred (quar.)
*Holders of rem Dee. 13
25c.
•
(quar.)
Sparks-Withington Co., corn,
1% Dec. 15 Holders of rec. Doe. 8
Preferred (guar.)
25e. Dec. 30 Holders of rec. Doe. 10
Spencer Trask Fund (quar.)
•500. Dec. 29 *Holders of roe. Dec. 10
Standard Cap & Seal (extra)
Standard Commercial Tobacco, Pref.- Divide nd omit ted
1
Dec. 15 Holders of roe. Nov.29
pref.
(mthly.)
Wanetta,
Stand.Royalties
Dec. 15 Holders of rec. Nov.29
Stand. Royalties Wetumka, pfd.(mthly) 1
Dec. 15 Holders of roe. Nov. 29
Stand. Royalties Wewoka, pfd.(mthly.) 1
1
Dec. 15 Holders of rec. Nov. 29
pfd.
(mthly.)Stand. Royalties Wichita.
•50e. Dec. 30 *Holders of roe. Dec. 13
Starrett (L. S.) Co., corn. (qua!'.)
*1% Dec. 30 *Holders of rec. Doe. 18
Preferred (qua:.)
Jan. 2 *Holders of rec. Dec. 20
State Theatre (Boston), pref.(quar.)- *2
134 Jan. 2 Holders of rec. Dec. 16
Stein (A.) & Co., preferred (quar.)
Jan. 1 *Holders of rec. Doe. 15
*3734c
(qu.)
A
el.
Inc.,
Seeur.,
Stock Exchange
rec. Dec. 15
Strawbridge & Clothier,7% pref.(quar.) *184 Jan. 1 *Holders of
•25o. Dec. 22 *Holders of roe. Dec. 10
Stroock (S.) & Co.(quar.)
rec. Dec. 4
of
Holders
Dec.
*
15
*3734c
A
class
(Czar.)
Sunset McKee Salesbook,
•26e. Dec. 15 *Holders of rec. Dec. 4
Class B (quar.)
rec. Dec. 23
Superior Portland Cement, cl. A (mthly.) *2734o Jan. 1 *Holders of
of rec. Dec. 13
Supertest Petrol.Corp..coin.& ord.(qu) 20c. Jan. 1 Holders of
rec. Dec. 13
50c. Jan. 1 Holders
Common and ordinary (extra)
I% Jan. 1 Holders of rec. Dec. 13
Preferred A (quar.)
rec. Dec. 13
of
Holders
1
373.4c Jan.
Preferred B (quar.)
25e. Jan. 1 Holders of rec. Dec. 10
Taggart Corp., corn. (quar.)
rec. Dee. 10
of
Holders
1
Jan.
51.75
Preferred (quar.)
50e. Jan. 1 Holders of rec. Dec. 10
Class A (qua:.)
'Sc. Dec. 15 *Holders of rec. Dec. 10
Tennant Finance, common (guar.)
*8734e Dec. L5 *Holders of rec. Doe. 10
Preferred (quar.)
*75e. Jan. 2 *Holders of roe. Dec. 12
Torrington Co. (quar.)
*25e. Jan. 2 *Holders of rec. Dec. 12
Extra
•134 Dec. 1 *Holders of roe. Nov.20
Traders 011 Mill Co., pref.(quar.)
rec. Nov.30
Transeonta Stores & Distrib., 1st pf.(qu) •134 Dec. 1 *Holders of
15
Tr-Continental Corp., 6% pref.(qua_ 1% Jan. I Holders of roe. Dec.
Jan. 1 Holders of rec. Dec. 15
714-Utilities Corp., common (quar.)_.... 30
Jan. 1 Holders of rec. Dec. 15
Common (Payable in common stock)... 11
75e. Jan. 1 Holders of rec. Dec. 15
$3 preferred (quar.)
•25c. Jan. 1 *Holders of rec. Dec. 15
United Carbon, corn. (quar.)
Jan. 1 *Holders of rec. Dec. 16
*344
Preferred
United Realties, pref.& prior pref.-Div Wends omitted *Holders of me. Dec. 20
2
Jan.
•$2.50
corn
Gauge,
S.
U.
20
*51.75 Jan. 2 *Holders of rec. Dec.
Preferred
Jan. 2 Holders of rec. Dec. 15
United States Tobacco, corn. (guar.).- $1
rec. Dec. 15
of
Holders
2
Jan.
134
Preferred (quar.)
*1.54 Dec. 31 *Holders of rec. Dec. 15
Universal Crane, pref.(guar.)
Dec. 31 Holders of rec. Dec. 12
82
Utah Copper Co. (guar.)
•14
Jan. 1
Victor Monaghan Co., pref
1% Jan. 2 Holders of rec. Dec. 20
Wagner Electric Co., pref. (quar.)
1% Jan. 2 Holders of rec. Dec. 17
Ward Baking Corp.. pref.(qua:.)
of rec. Dec. 15
Waakesha Motor Co., corn. (quar.)_.... •750. Jan. 2 *Holders
1% Jan. 2 Holders of rec. Dec. 15
West Point Mfg.(guar.)
roe. Dec. 10
of
*Holders
15
Dec.
*30c.
West Side Secur., partie. pref
of rec. Dec. 6
Weyenberg Shoe Mfg., pref.(quar.) - •134 Dee. 15 *Holders
Jan. 1 *Holders of rec. Dec. 12
Wheeling Steel Corp., class A (quar.)...... *2
*234 Jan. 1 *Holders of rec. Dec. 12
Class B (Czar.)
h134 Jan. 2 Holders of roe. Dec. 12
Wilson & Co.. pref
16
Wisconsin Holding,class A & B(in stock) sel0 Jan. 1 *Holders of rec. Dec.
Name of Company.
Railroads (Steam)(Concluded).
Southwestern RR.of Georgia
Texas & Pacific common (qua:,)
Union Pacific common (qua:.)
United N.J. RR.& Canal COS.(qu.)-
Pet
When
Cent. Payable
1 2%
..
154
251
*251
Books Closed,
Days Inclusive.
Jan, 1 *Holders of roe. Dee. I
Dec. 31 Holders of rec. Dee. 15a
Jan. 2 Holders of Mo. Doe, la
Jan.d10 *Holders of rec. Dec. 20
Public Utilities.
$1.75 Jan, 2 Holders of rec. Dec. 15
Alabama Power,$7 pref.(quar.)
$1.50 Jan. 2 Holders of rec. Dee, 15
$6 preferred (guar.)
81.25 Feb. 2 Holders of leo. J811. 15
$5 preferred (qua:.)
$1.75 Dee. lb Holders of rec. Nov.28
Amer. Electric Power, $7 pref.(quar.)
40e. Dee, 30 Holders of Fee. Dee. 1
(annual).
corn.
Amer.Superpower Corp.
Amer. Telephone & Telegraph (quar.).. 251 Jan. 15 Holders of rec. Doe. 200
Amer. Water Works & Electric81.50 Jan. 2 Holders of reo. Dec. 120
$6 first preferred (qua:,)
rec. Doe. 15
Arkansas Power dr Light, $7 pref.(qu,). $1.75 Jan. 2 Holder, of
Jan, 2 Holders of rec. Doe. 15
$1.50
56 preferred (quar.)
roe. Nov.280
of
Holders
2
Jan.
Associated Gas & Elec.,original pf,(qu.) 8751e
51.25 Dec. 16 Holders of rec. Nov. 150
$5 preferred (quar.)
rec. Nov.280
of
Holders
Jan.
2
$4
$8 allotment certificate;
$1.75 Jan. 2 Holders of reo. Nov.280
$7 preferred (qua:,)
f2 Jan, 15 Holders of rec. Dec. 31
Assoc. Telep. CUL,corn.(quer.)
81.75 Dec. 15 Holders of rec. Nov.29
$7 prior preferred (guar.)
81.50 Dee. 16 Holders of rec. Nov.29
$6 prior preferred (quar.)
81.60 Jan. 2 Holders of rec. Doe. 15
(quar.)
A
ser.
cony.
pref.
$8
•1,4
Jan, 1 *Holders of rec. Dee. 10
Bangor Hydro Electric, 7% pref.(quar.)
Jan. 1 *Holders of rec. Dec. 10
6% preferred (quar.)
Jan. 15 Holders of rec. Dee. 23
2
(quar.)
Bell Telep. of Canada
•1% Jan. 15 *Holders of reo. Dec. 20
Bell Telep. of Pa.,634% pref.(qua:,)...
Holders of rec. Doe. 13
Birmingham Elec. Co.,$6 pref.(qu.).. $1.50 Jan. 2
$1.75 Jan, 2 Holders of roe. Dec. 13
87preferred (quar.)
•13i Dec. 15 *Holders of rec. Dec. 1
Birmingham Water Works,6% pf.
1% Jan. 2 Holders of rec. Doe. 10
Boston Elevated Ry.. corn.(guar.)
3% Jan. 2 Holders of roe. Doe. 10
Preferred
rec. Doe. 10
84 Jan. 2 Holders of rec.
First preferred
Dee. 15
2 *Holders of
Brazilian Tr., Lt. & Pow., pref. (guar.) '134 Jan.
Dec. 31a
rec.
of
16'31
Holders
Jy
$1.60
Brooklyn-Manhattan Transit, Prof. path?
51.150 A p15'31 Hold of roe. Apr 1 1931a
Preferred. series A (qua:.)
rec.
of
Dec. 1
2
Holders
Jan.
51.25
(quar.)
Brooklyn Union Gas
29
Buff. Niagara & East Pw., corn. (quar) •40e. Dec. 31 *Holders of rec. Nov.
•40e. Dec. 31 *Holders of rec. Nov.29
Class A (guar.)
Doe.
15
rec.
of
2
*Holders
Jan,
•400.
Preferred (guar.)
.$1.25 Feb. 2 *Holders of roe. Jan. 15
$5 first preferred (guar.)
S,i Dec. 15 *Holders of rec. Doe. 1
•1.
(guar.)
pref.
1st
Co.,
Water
Butler
Canada Northern Pow. Corp.,oom.(qu) 150. Jan. 26 Holders of reo. Dec. 31
1% Jan, 15 Holders of rec. Dee. 31
7% preferred (quar.)
Canadian Western Natural Gas L.Ht. a
*25e. Mr.2'31 *Hold,of me.Feb. 14 '81
Pow., preferred (extras
•25e. Junl'31 'Hold.of rec. May 15'31
Preferred (extra)
*51.50 Jan. 15 *Holders of rec. Dec. 31
Central Ills. Pub. Serv., pref. (guar.)
Holders of roe. Nov.25
Cent. Public Service Corp., ol. A (qu.)_ n4334c Dec. 15
Jan. 1 Holders of rec. Dec. 12
$1
$4 preferred (quar.)
$1.50 Jan. 1 Holders of rec. Dec. 12
$6 preferred (guar.)
$1.75 Jan. 1 Holders of rec. Dec. 12
$7 preferred (quar.)
10e. Jan, 1 Holders of roe. Dec. 5
Cent. States Elec. Corp., common (qu.).
234 Jan. 1 Holders of roe. Dec. 5
Common (payable In oom.stook)
134 Jan. 1 Holders of reo. Dec. 5
7% preferred (guar.)
134 Jan. 1 Holders of rec. Dec. 5
6% preferred (qua:.)
rec. Dec. 5
Cony. pref. opt. series 1928 (quar.) _m $1.50 Jan. 1 Holders of
Jan. 1 Holders of roe. Doe. 5
81.50
m
1029
((mar.)
series
Cony. pref. opt.
rec. Dec. 6
of
*Holders
2
*$1.75 Jan.
Central States Power & Light, pf.
*$1.75 Jan. 2 *Holders of rec. Des. 5
Central States Utilities, pref. (qua:.)
reo. Dec. la
of
Holders
Dec.
15
581-30
Cities. Sem, Pr. dc Lt. $7 prof(mthly)
500. Dec. 15 Holders of rec. Deo.I la
$6 preferred (monthly)
rec. Dec. la
of
Holders
Doe.
15
412-3e
preferred
$5
(monthly)
58 1-3c Jan. 15 Holders of rec. Dee. 31
$7 preferred (monthly.)
50c. Jan. 15 Holders of rec. Dec. 31
preferred (monthly)
Below we give the dividends announced in previous weeks $6
41 2-3c Jan, 15 Holders of rec. Doe. 31
$5 preferred (monthly)
and not yet paid. This list does not include dividends an- Coast
Counties Gas & Electric*134 Dee, 15 *Holders of reo. Nov.25
1st and 2d preferred (guar.)
nounced this week, these being given in the preceding table.
of reo. Dee. 80
hooks Closed.
Commonwealth & Sou. Corp., premcia.) 51.60 Jan. 2 Holders of
When
Ply
rec. Dee. 15
S1.26 Jan2'31 Holders
Power
Co.,
Inclusive.
$5
Days
pref.
Consumers
(guar.)
Payable.
Cant.
Name of Company.
135 an2'31 Holders of rec. Dec. 15
6% preferred (quar.)
Dec. 15
rec.
of
Holders
'31
an2
$1.65
8.6% preferred (guar.)
Railroads (Steam).
134 Jan2'31 Holders of res. Dee. 15
7% preferred (quar.)
Dec. 30 Holders of reo. Dec. 1
$2
15
Dee.
Alabama Great Southern.ord
res.
of
Holders
'31
an2
50o.
1
6% Preferred (monthly)
$1.50 Dec. 30 Holders of rec. Dec.
Ordinary (extra)
554a Jana'31 Holders of roe. Dee. 15
6.6% preferred (monthly)
Dec. 30 Holde
@FedFRASER