Full text of Commercial and Financial Chronicle : February 10, 1944, Vol. 159, No. 4254, Section 2

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Final

Volume 159

y

^

ESTABLISHED OVER 100 YEARS

Edition

Number 4254

Oh

■

In 2 Sections-Section 2

Price 60 Cents

^EW YORK, Nt Y., THURSDAY, FEBRUARY 10, 1944

V

Copy

axing Ourselves Beyond Any limit Imagined
Possible—Urges Taxes Double Those Proposed By Treasury
—Suggests Peacetime Revision of Taxes, Including Dropping

t-tbidS._

i-C^4st

a

audience, that f -Un 1943; we produced7 m
than $190i
r billion
of goods and services," arid that?" "with such a
:pome we can carry the interest on our war debt and still
have a whole lot more left over than we: had at the
top of;
the, boom ,in 1929," ; Proceeding further along; the same;
<*
general line, he added that "we can enj oy the things we
,an

The levying of higher taxes was advocated by Wendell L. Will-*kie, the • 1940 Republican >candidate fbf President, at a meeting in idea of realism is represented by
New YorkvGity^oit F^bA S arranged by the New York "Times" under the recommendations of his Sec¬
the direction of Mrs. Arthur Hay § Sulzberger.
The meeting was the retary of the Treasury."
i have^AhvaysYyiranted andthereby create^such ^rosperit^
With respect to the tax bill
fiicst: of ,a serjes of three, under the title "America Plans and
in the post-wai' era that, we can
carry the national debt Dreams," thle two others being scheduled for March 16 and April 20. agreed upon by the conferees of
the House and Senate, proposing
Mr. Willkie?easily*; or we .Can pinc^^
and bring on a depression;
,called atten¬ victory we have gained in blood." a-yield of $2,315,800,000 in revenue
and let the .national debt crush us/V
j
tion to the na¬
Mr. Willkie went on to say "in Mr. Willkie compared this with
Only a few days earlieri Henry J; Kaiser, pleading forj
tion's ; huge order to prevent this we have a the
Treasury's proposal for
a
■j large
•public debt; single
post-war; public; expenditures, told a Congressional
duty:
to
tax
ourselves yield of an additional $8,000,000,now
committee that
beyond any limit that we 000, saying:
y^'-'-YYY
;stating that
"keeping up the momentum is the big objec¬
"Now I know that in the opin¬
; "in. the four have hitherto imagined possible.
tive. ; If we can do that, we; needn't Worry about the wai|
"There is only one principle to ion of Congress, as evidenced by
years
from
debt, and any post-War public expenditures we may have to
f is ca 1
1941 apply to war taxation, and that the bill on which the Senate ancl
make.: Production will pay it off."
through fiscal is a hard principle: we must tax House Conference Committee has
Preceding Mr. Kaiser
1944
this to the limit every dollar, corpor¬ agreed, the $8,000,000,000 Treas¬
Iby only one day, Wendell Willkie in an address in New
If we
country, will ate and individual, that is capable ury proposal is too high.
.York, had turned to this same general subject in these
have obli¬ of
bearing
a; tax,
particularly are to be realistic, it is far too
words: "We shall (in the
ppstfwar years) have to undertake a
gated itself on those corporate and individual low. If we are to be realistic, we
>

,

.

...

;

•

..

truly dynamic social security; programfor the, purpose of inj
creasing the health and effectiveness of those of our citizens

•

whose usual standard of
other
-

things will make

living is too low.
budget of

a

a

All this and

minimum of $20

account of the
war

to

of

000.

We

.The national income, which is

reaching the $160 billion mark, to meet such
never

fall below

budget should

$120 billion at 1942 prices."
Debt

should

a

now

so

-

,

Misconceptions

many

of

(Continued

us

on

become

page

so childish

be not

"difference between wartime and

All else must be

asserted

Willkie

Mr.

Y' Yy

that

selves

total

public debt will
$250,000,000,000.
opinion, this figure is low."

with

less than

.

only
the

to

idea

peace time taxation,
said that because of

the

'• ■
"in peacetime needs and methods, our
the wartime taxation program, both

y

ourselves to pay for
war up to the limit of our capa¬
city we shall automatically com¬
bat inflation.
But in taxing our¬

taxing

-

productivity.

Mr.

rificed and all must share the sac¬

...

war our

• i/.o-

As to

Willkie

rifice to the bone."

can¬

predict
how
long

the

increased

posal."

sac¬

threatened.

prices absolutely inescapable. A rise in prices will,
Wendell Willkie
these vast ex-*
necessarily, increase this budget,
There is indeed
penditures
must
continue," he
only one way in which we can legitimately meet the de¬ said, "but we can say with cer-*
mands of a budget of $20 billion or more.
This is through tainly; Lhat at; the conclusion -of
,

additional

taxes more than double that pro¬

only when the war effort itself is

not

at 1942

are created by the
That limit is reached

itself.

war

$307,000,000,-

billion,

should aim to raise in

earnings which

the

extent

many

.

corporate and individual, must be
completely revised when peace
comes."
He continued: "The cor¬

poration tax should consist simplya single, ungraduated tax ap¬

combat inflation,
refunding the

of

of

money later, we.shall not pay for plicable to the net income of all,
the war to the limit of our capa¬ corporations earning more than a
present the
interest on our public debt aver- city." It was noted by Mr. Willkie given amount per year—say $25,that "last month the President 000 or $50,000.
The rate on cor¬
ages almost exactly 2%" and he
called for a "realistic" tax pro¬ porations earning less than $25,~
added that "it is, I believe, opti¬
000 or $50,000 should be some¬
mistic to hope that we Can keep gram. Since he did not specify in
-Yv;
Y'
his statement either the size or what lower.
the interest rate that low inde¬
"This
single corporation
tax
the nature of a "realistic" pro¬
finitely; yet even if we do, the
(Continued on page 620)
;
service charge on $300,000,000,000 gram, we must assume that his
of debt will be $6,000,000,000 per

In my
He

noted

that

"at

•

622)

According to Mr, Willkie,
contemplated debt and
that charge which must determine
cur
fiscal policy, from this day
forward, whether in peace or in
war," and he declared that "as
we look toward the future today
year."

■

"it is that

Vice-President Declares Business, Labor and Agriculture
Must Recognize The General Welfare Of The Common

Man—Warns Against Post-War Struggle Bringing Fas-i
cism To This Country

we

tremendous
shall lose in debt the

face ironically this

risk: that

we

From

Washington
News

illlil-lAhead Of
:

carusub bargeron
One of the most beautiful spots in

-

^

the Washington panorama

of

bickering and backbiting has been the lovey-doveyness of Harold
Ickes and the big oil operators.
As we have long understood it,

nobody could get along with Ickes and nobody could ever get along
with the big oil operators.
But the way they have got along together
since the first gas shortage controversy back there in the summer
GENERAL CONTENTS
of 1941 has been something glorious to behold. ■Vri ; >
:
;:r Bets have ..been.:made.'around^';r'
'.'' :
Y Editorial
Y
here on the question of who WQuld this government now being cocould, "if wrongly channelled," lead to a new kind of Fascism. Mr.
Page
617
rook whom, whether Ickes would holder of the Persian Gulf prop¬
Wallace also warned that a post-war struggle for
:
power among "the Financial Situation
end up with the oil industry un¬ erty,
will undoubtedly use its
big tnree :-W'...> ,;
$
y; .i
————
Special Article in Section
der his governmental wing, or the army to protect that, property.
big
business,
prise and competition to assure
A Post-War Tax Program, by "
Here is the amazing flop in Lib¬
I
oil industry would end up with
big labor and
progress and a rising standard of
Harley L. Lutz;.
;YYY'Yj.
It was one of the first
Ickes under its wing. As it is the eralism.
bi g
agricul¬
living; the avoidance of business
ture" — might
amazing friendship seems to be creeds of our Liberals, as far back
ups and downs, and no exploita¬
Regular Features v
as this correspondent's mind can
tion of labor, capital or agricul¬
going along as nicely as ever.
bring Fascism
From Washington Ahead of the ;•
Most industries are scared to go, to denounce any Government
to this coun¬
ture." yY-Y Y-/'■ Y:
617
Vr'1/ ■ ■■ j
News
'<.YYvY;;Yrv.'
death of Washington bureaucracy. that supported the holdings of our
try.
■"
Mr. Wallace predicted a "seri¬ Moody's Bond Prices and Yields, ; .,: 627
But the oil* industry seemingly citizens in foreign lands.
As a
Mr- Wallace
Items About Banks and Trust Cos., 632
ous
conflict" of "the big three"
629
NYSE Odd-Lot Trading..;........
would think
nothing of letting matter of fact, one of the first bits
;said:~ "To work
unless
they all recognize "the Trading on New York Exchanges.;.. 630
Ickes go. You get the impression of agitation ever to come to our
together with¬
superior claims of the general
that he
is their
candidate for ears, when we were still in swad¬
out
slipping
welfare of the common man." He
;YState pf Trade
President.
dling clothes was that Standard
;
• Y
V • V--r'Y.
into an Amer¬
further stated:
y •
! General.' Review;.,.;...;;;i>... 618
ican
Fascism
Now, we see Ickes, representing Oil was responsible for our eter¬
4'
"Each of the 'big three' has un-j Commodity Prices, Domestic Index. 630
the Government,, in joint partner¬ nally sending missionaries to the
will
be
the
Weekly .Carloadings... 631
precedented power at the present Weekly Engineering, Construction.,629
central
ship with the oil companies in the heathen Chinese, and the great
prob¬
time.
Each is faced with serious Paperboard Industry Statistics..;,.", 631
lem
of postdevelopment bf the rich find in challenging question down over
Weekly Lumber Movement,,........ 631
post-war worries.
Each will be
w ar
My, how the years was: "Are we going to
democ¬
Fertilizer Association Price Index... 628 the Persian Gulf area.
tempted to try to profit at the Weekly Coal and Coke Output...... 629 far we have come, and what an use the Army to defend Standard
racy." He de¬
expense pf the other two when Weekly Steel Review
628
clared
that
amazing evolution in Liberalism Oil (in China, in Mexico, any¬
the post-war boom breaks.
Henry A. Wallace
Each Moody's Daily Commodity Index..., 627 it is, Mr. Ickes being one of the where else").
"our dominant
Henry A. Wallace,, speaking at Los Angeles on Feb. 4 at a winthe-war rally, warned that returning service men would be incensed
by a spectacle of special interests, scrambling for preferment, and
that "disgust" inspired; in service men
by pressure-group politics

—

•

■

^

-

want is for an

can

efficiently functioning economyfull employment

save

itself only, if it learns to

work with the other

Weekly Crude Oil Production.....».i629
Non-Ferrous Metals

of labor, capital Government, hrterms of the:gen¬

Weekly
New
•

and

technologies; a balanced"• de¬

eral welfare."

' *

Electric

ervation

of

genuine

free

enter-




•:

tokihg the statement that "some
(Continued

foremost apostles of

630

York

Output............ 627

Reserve

on page

624)

Bank'

Suspends

Production and Trade Indexes.,,.

December' Building

velopment of all regions; the" pres¬

Market

.

two, and With

Permits........ 628

Living Costs, Index for Large' Cities
Nov. 15-Dec. 15.

:

626

-

627

Liberalism.

But you

;

Manifestly when war comes, as

so

don't have to go >ack

far to realize what a tremen¬

it periodically does, to our midst,
it- makes no'difference what na¬

dous shift in Liberal thinking this

tionals

seem

particular oil prop¬
erty. It is the country's army that
gets there first that counts.
So,
own

a

Persian Gulf business entails. We
.

same

to

recall

under

this

very

New Deal that the Cardenas

(Continued on page 621)

THE COMMERCIAL & FINANCIAL CHRONICLE

618

early

A Sober

Warning

■

"The tendency to disregard precedents in the
cases
like the present has become so

strong in this court of late as, in my^ view, to shake
confidence in the consistency of decision and leave
the courts below on an uncharted sea of doubt and

difficulty without any confidence that what was
said yesterday will hold good tomorrow, unless
indeed a modern instance grows into a custom of
members of this court to make public announce¬
a change of views and to indicate that they
change their votes on the same question when

evil

"The

before the court.

comes

case

.

earlier

resulting from overruling

In the pres¬

considered decisions must be evident.
ent case,

.

,

the court below naturally felt bound to
apply the law as clearly announced by

follow and
this court.

'

"If

litigants and lower Federal courts
so, the law becomes not a chart to

do

to

conduct but

a

ended Jan. 29,
of

govern

of

teeth

the

decisions

that

the not

such

settle, for they will have

declared

rule

will

actions

not

are

A War Labor Board decision

7

be

no

followed.

But

4

Feb.

litigate
assurance that a
the

said

laws is

more

that the
disrepute.

of wage stabilization
fundamental part of the

a

But this is not such

new

rules

wrote

the

suc-^

well be a thought new to some mem¬
Supreme Court, but it is one they should
ponder well.

have

to

the

War

gional

This may

on

in

George W. Tay¬
opinion in a case
involving
the
Howard
Menu
Service, Inc., of 345 West 49th
Street, New York, which the Re¬

bers of the

past that tribunal is
public.

ingredient

Public member

lor

Owen J. Roberts and Felix Frankfurter.

As has not been the

indis¬

.

case."—Justices

a

an

policy formulated by the Con¬
gress."
Reporting this, an Asso¬
ciated Press dispatch from Wash¬
ington, on Feb. 4, also had the fol¬
lowing to say:
:. V

the law may
grow to meet changing
I do not advocate slavish adherence to

of conduct.

constitutes

pro¬

cessful effectuation of the .national

course

conditions require

stabilization

Labor

Board

granted " wage

in violation

found

increases

of stabilization

laws.

finding

for many long years
trial in the minds of the

Board

upheld
recommended

and

the
eco¬

nomic sanctions against the com¬

amounting to $8,237.

pany

+:■

These

sanctions

will

be

im¬

posed by disallowing that amount
when

The State 01 Trade
Most of the heavy industries sent in
favorable reports the past
Electric power
production, however, fell off from the pre¬
vious week's figures, but this was more
than offset by the
showing

carloadings.

Retail trade reports were also

Production of electricity dropped

;

4,531,662,000
in
week, according

to

Electric Institute.

The latest total

was
.

to 4,523,763,000 kilowatt hours

the week ended Jan. 29th, from v-

in

13.8%

the

above

the

year-ago

Con¬

solidated Edison Co. of New York

system

output of 220,800,000 kilowatt hours in the week
ended

29%

Jan.

30th,

increase of
171,100,000 dis¬
an

the

over

.

tributed in the 1943 week.

Carloadings of

,

More

orderly

conditions

were

forces, the trade

"further

paper

restrictions

light ammunition

This

in

by

increased

an

12,340

cars

an

from

increase

the

preceding

'

Week

this1 year,

than

the

1943

and 4,503
period two

same

of

76^392

cars

more

corresponding week in
cars

below

the

uled

yet

an

production, but
important factor."

The

Government's

are

not
.

;

locomotive

has been cut back, sayS
"Steel," but increased allotments
are
definitely scheduled for do¬
mestic railway needs. The indus¬
program

This
total was 124.48% of average load¬
try looks for demand to be well
ings for the corresponding week
sustained at least until the Euro¬
of the ten preceding years.
pean
invasion
is
well
along.
Steel production for the current
week

has risen

industry's

years

to

ago.;

100.2%

American

of the

orders

capacity against
freight
99.8% last week, according to the
American

Iron &

Steel

Institute.

100.2%, output of steel ingots
and castings for the week is in¬

dicated

at
1,741,800
net
tons
1,734,800 last week and
1,698,700 in the like 1943 week.

against
The

all-time

high was recorded
in the weeks beginning Sept. 7,
and Oct. 4, 1943. In each of these
periods operations were at 100.8%
and

production 1,756,900 tons.
activity may develop
in the steel industry at any time,
the magazine "Steel" declared reGreater

cently,

citing,

among




other

ing

the

to aid them

nation's

it

cently.

will

needed, it
of

amount

that

in

solv¬

transportation

War

allow

number

filed

60,000

announced

was

The

Board

have

than

more

cars

problem,

rials

railroads

for

rated

At

says:

all

was

orders
can

mate¬

stated.

The

represents
be

re¬

Production
the

turned

the
out

with the facilities not utilized for
armament
work and the man¬
power

available., Cost of the

car-

building program is estimated at
$200,000,000.

"With the lowering of income
tax exemptions, many people not
having

tax

dens

instead oft,
heavier bur¬

program,

concentrating

still

present Y taxpayers,

upon

might intensify efforts to reach
large income which is apparently
evading
taxes.
Some
of
this
money might be reached through,
more rigid
tax enforcement, an<8
some
might be reached through
sales

excise

or

apply

that

taxes

such,

when

would\
was

money

Smaller War Plants

Corp. Announces
New Loan

Policy
•k

Limit Increased From

-

$100,000 To $250,000
A

loan
policy effective,
1944, was announced o$
by Maury Maverick, Chair¬

new

Feb.

1,

Feb. 2

of

man

have misunderstood the frequent

the

Smaller

War

Plants*

Corporation. This new policy in- ;
(of
creases the amount that banks arq :
a portion of income, through taxes
permitted to carry under a de¬
and post-war refunds) to mean
ferred participation from $100,000i
confiscation of savings accounts,
to $250,000 where the bank takes
^
and
some
owners
of
refugee
a direct
participation in the loan
money fear special
taxes, or a
of 10% or more. Mr. Maverick hr
'freezing' of bank deposits because
his announcement added:
of foreign connections.
'
"Interest up to 6% per annum'
"A feature of The wartime cur¬
proposals for 'forced savings'

.

is allowed

expansion is the large in¬

rency

that have occurred in bills

creases

of

/ the

between

grand

August,

vember, 1943, by 178%, the $10s,
$20s, $50s, and $100s increased by
about 200% or more, but. the $ls,

be manifestly unjust to the

summary":'

on that part of the loan!
which the bank carries at its own'

risk_and on the balance, which is I
carried under a deferred partici¬
pation, interest of 4% is charged ?
with the bank
paying to SWPC a ;

graduated fee of from one-half of
1% to 1% per annum, depending

stabilization

of

program

,

the

CURRENCY

'

..

:■■

■■'v

,1939

City Yosstfts

reported

Press

in

"Rejection
18

an

dispatch from

Asso¬

Col-

of farm workers in
19-year-old
age

and

bracket is running

62% above the
average for other registrants, and
is higher than any other major
occupational group in the nation,"
Dr, Mangus said.
"In a report outlining possible
correctives, he said the defects
which
ber of

caused

the

+

78

365

+

70

68

4-

34

■

966

1,950

+

984

5,127

+3,446

$20s—

1,487

5,561

+4,074

+274

/ $50s—

433

1.416

857

2,761

$500sl_

180

388

405

greatest

num¬

rejections in this age group

Y

Total

v

'+*■

983

+.

208

+
—

324
7

19

—

11

$7,171 $19,918

"Since

$1,000
which

this

less

was

a

banknotes

by

of

80%.

than

the overall

very

substantial

hardly a common
medium of exchange, there are
more than 700,000 of them in cir¬
are

culation-today, an increase of
more than .300,000 since the out¬
break of war.
The $100 bills are
greater

ever

demand

before. Since the

the number in

use

today
war

than

started

has risen from

8,000,000 to 27,000,000, an extra¬
total considering
that
currency has always been looked

ordinary
upon as
ness

as

established

,

the 'small change' of busi¬

payments.

Mave¬

"nothing
shall

ht

be

in¬

modifying previously1
policy of having all j
;

made

available

to

the/

applicant's local bank under such
normal

standards. Neither

does this new
policy' affect the
present 100% -repurchase
plan op.
loans up to $25,000 nor the
Rb-|'
gional Loan Agent's

authority to

approve
amount.

direct loans in the

same

.■-Y'.v+yV, v

.

It is further announced
that alFfirms engaged in the
production f
of

war

ian

material

items

who

or

essential civil¬

require financing

obtain details of this
cedure at the nearest

can

new'pro,J
*

SWPC field

office.

William Kannard Retires

*

After 25 years as a
member of
the Federal Land Bank of
Louis¬
ville legal

"It remains to be seen whether

that

procedure

terpreted

Although $1,000

amount.

stating

new

loans first

circulation

,

otherwise

SWPC reports Mr.

as

41

+178

turn

custom*!

been beyond its legal;
brings into even closer j.

37

—

which

harmony the banks of the country/
SWPC, which have
beeirr

The

80

—

+12,747

increased

average;, yet
dollar

the

1939

bills

It

+ 116
+

have

bank's

in

loans

on

limits.

rick

+ 222

Y- 729
10

in

business."

227

+

+1,904

17"

30

department, William

Kannard retired on Jan. 27.
Louisville "Courier-

T

The

expansion will continue
Journal'^
this year at its prevailing high states that Mr. Kannard celebrated

currency

business

if

the

bad

may

+205

34

dealing

which

working hand in hand to aid small'

'+102

1,681

.

continued

bank,

j

ancl

+ 100

$5s__

$9.000s—

lumbuS, Ohio, on Jan. 29, which
also said: ■.V,Y v■'YvT;
+/k//::
the

440

+

$10,000s—

popular belief that
farm
youths are healthier than
their city cousins has been re¬
futed
by Selective • Service fig¬
ures and urged the farm popular
tion
to do
something about it»
was

+

886

$2s

at

ciated

$1,006

521

*$10s__

.■

••

that the

This

Percent

$566

$ls—

Ohio State University,
said at Columbus,. Ohio, on Jan;
29,

Amount

Coin.i

$1.000s—

•;;;

A. R. Mangus, rural sociol¬

ogist

VY+'Y
: Y.'"Y
—-Change—-

1943

Aug.',

$100s__

+%///%

Healthier Than Farm
Dr.

Nov.,

Outstanding

pro¬

his

local

will be able to service its

(In Millions of Dollars)
'.

••

Find

possible

-

BY

ers

" v

;

to violate the law with im¬

gram

punity.

-

.

,

CIRCULATION,

IN

DENOMINATION

to

anti-inflation

„

with

majority of employers and
employees
who have ' complied
with the letter and spirit of the
great

if

trade

denominations.
total increased
1939, and No¬

larger
the

While

and

retail

o£

In that

realized.

been

the

case

have

accounts

adopted the practice of storing up
currency for the payment of their
taxes.
Moreover,' many people

rate

the

re-examination

a

influencing

'

were

this week show
gains of 5 to 9%
over

bank

vision, lack of mental

from

than had

business in used automobiles, fur¬
niture, antiques, old jewelry, etc.,
are reputed to deal strictly on a
cash basis in both buying and sell¬

ing,-with only a minimum of
bookkeeping records, in order to
evade taxation.
In fact, the ex¬
tremely high income tax rates
now
prevailing afford to large
numbers of people a high pre¬
mium on evading taxes on any
income not reported to the Treas¬
ury at the source.

factors

the cur¬
rency trend.'
It may be that tax
evasion and black market opera¬
tions have become more impor¬
tant influences in money supply

>

balance, muscular or bone ab¬
normalities, heart disease, hearing
last year's sales'because of deficiencies and hernia."

Reports

will call for
all

; "At the same time, some of the
merchants
doing
an
extensive

program

for

a year ago

currency

monthly "Letter," under the
caption, "New Factors in Cur¬

~

revenue

was

1

likely to be

are

of

on
the percentage of the bank'g
;
$2s, and $5s by 100% or less. The
Taylor pointed out that the
participation."
'
"
"r
$ 10s, and $20s alone make up
program to
stabilize wages and
Mr. Maverick also stated:
more
than half of the total cir¬
prices is bound to fail if unlawful
"This new policy will enable
culation, and accounted for more
wage or salary adjustments are to
the small manufacturer to obtain
tnan half of the total increase,
a$
go
undetected and
unpunished
will be seen from the following financing more quickly and make
and added that it would further¬

needs

noted

the trends

;

Dr.

Indicative of the shifting needs of
the armed

between

ary

permit
the
relatively
few
who
have
chosen
to
ignore
the wartime

freight for heavy shells. Heavy artillery
for the, week ended Jan.
29, to¬ production is being increased, and
taled 811,062 cars,
according to other ordnance items are sched¬

roads.

computes its

the rule last
month, it was stated,
in contrast with the unsettlement
which
prevailed
in
December.

offset

the Association of American Rail¬

company

laws.

more

things, the changing character of
Edison military demands.

generation of 3,976,844,000.
reports

—

preceding
the

the

deductions under the Federal tax

week..

in steel and the gain in.

there was a close cor£
circulation and wage and
salary payments—which comprise about 70% of national income,"
the National City Bank of New York finds that "recently there has
been a divergence of trends, sugggesting that new factors may b«:
coming into the situation that need to be taken into account in pro¬
jecting currency trends."
Dis-^
cussing the subject in its Febru¬ money should continue to soar, it
Pointing out that "until about

relation

•

National

The

case

favorable.

Demand

,

pensable

,

new

wage

and

gram

Respect for tribunals must fall when the bar and
the public come to understand that
nothing that
has been said in prior adjudication has force in a
current controversy.

authority where

em¬

in violation

consequence will inevitably be
administration of justice will fall into

conditions.

"punishment of

on

ployers who make wage payments

national

deplorable

"Of

^Ykk v

Alleged
Illegal Wage Payments

"Defendants will not know whether to
to

1943 week.

like

Fine Firm For

improbable chance that the

asserted rule will be thrown overboard.

or

were

previous week
sales of this group
11% higher than

of chance instead of settling

game

on

stores

in. the

rights and liabilities it unsettles them. - Counsel
and parties will bring and prosecute actions in the
maintainable

In the

New York.

■■

not

are

National City Sees Heavy Currency

according to the Federal Re¬
rency Demand," the bank states
serve System.
Sales for the fourthat "in addition to heavy legiti¬
week period ended Jan. 29, were
mate uses, there is evidence of
up 6%, compared with the like
growing demands for currency
period
last
year.
Department
from 'black market' operators who
store sales in NeW York City in
are reported to deal in many dif¬
the week ended Feb. 5, were 1%;
ferent articles at prices above the
larger than in the corresponding
OPA ceilings, and who naturally
week
last
year,
according • toa
try to avoid bank records of their
preliminary estimate issued by
Continuing, the bank
the
Federal
Reserve
Bank
of dealings."
ago,

ment of

another

ad¬

spring styles and better
weather,
according - to
Dun
&
Bradstreet,
Inc.
The following'
increases
were
reported:
New
England 3 to 6%; East, 6 to 9%;
Middle West, up To 3%; North¬
west, 5 to 7%; South, 8 to 12%;
Southwest, 10 to 13%, and Pacific
Coast, 9 to 13%.
Department store sales on a
country-wide basis were up 8%
for the week ended Jan. 29, com¬
pared with the, like week a year

decision of

will

in

interest

consumer

vanced

Thursday, February 10, 1944

should

level

mobilization

of

off
our

armed forces should be practically

completed.

If

the

demand

for

his 70th

birthday

has

distinction

first
new

the

employee

on

Jan. 27, and
of

retired

compensation plan.

being the
under

I

a'l

Volume 159

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4254

like

America Can Realize Full

Prosperity
Employment After War Says Ford

And
Henry Ford said

enjoyed by the British
of

AE!ies¥/orking To Keep Spain

Nations.

"(Such a representation would
give Russia, long denied member¬
ship in the League, 16 seats.)

Feb. 5 that America could realize full pros¬

on

that

Commonwealth

"There

are

U. S., Britain Suspend Gil Shipments To
President Roosevelt; made known

diplomatic authori¬

and

perity and employment after the war "if we think straight, use our ties here who feel the Russians
own men
and machines wisely and teach our young people to do have pulled off a brilliant
piece
things for themselves."
He is confident of the world's future today of work in international diplo¬
as
he was of the ultimate success of motor vehicle transportation macy, no matter what are the im¬
than

more

United

50

from—

accounts

Dearborn, Mich., given in the New
York
"Times,"
which
further
quoted Mr. Ford
"There is

of

what

a

as

follows:

lot of talk

industry,

nowadays

especially

our

—~~~

r

of certain greedy peo¬

the desire

competition."

destroy

ple

now—busy

"still another reason"

the

things
to help

have been asked to do

But at the

country;

same

we
our

time

we

thinking of things we should
do in the future.
1 1

are

"First,

want to build the best
we
can—whether they

we

products
be

automobiles, tractors or cargo
planes. Secondly, we want to pro¬
vide as many jobs as we can. We
especially want to help the boys
coming back.
"There has been
talk

what the

on

when

this

a

of

lot

loose

will be like

cars

world-wide

is

mess

Our company has built some
30,000,000 cars and trucks and we
probably know something about
making them. The first cars we

build

after

the

will

war

look

ones we

Our V-8 engine has proved

made.

to be the best

we

made and

ever

likely to stick with it.
"Of course, we are
going to
.•make our bars lighter
ing to use more plastics. We are
going to improve them as much
as
we
can.,. One thing we don't
we

are

in is standing

believe

still.
competition is

"We believe that

for

necessary

healthy

progress.

to

cited

Ford

Mr.

there

that

it

was

nec¬

was

back to the 1942
which "we spent years

to

essary

models,

go

perfecting."
"We've
and

give her 16 states
in

foreign

terpreted today
to

match

United

count

got

women

190,000

some

in¬

payrolls,

our

on

The

men

fel¬
We're going to help teach
things that will be useful."

lows.

them

declared

He

reason

scale

that

there was no

Separate
countries
and

Moscow.
The

ment)

Yiacheslav M. Molotov giving the

republics within the
Soviet Union their own Commis¬
sariats of National Defense and

and deal directly

with other coun¬

According

that

day

history-making.y reconstruc¬

tion of the Soviet Union, the first
since

of the consti¬
after

the adoption

tution in 1936, was achieved

It

four-hour debate.

a

ther

in

stated

these

was

"The

•elected

as

Supreme
Soviet
also
Nikolai Shvernik, Secre¬

tary of the Trade Unions, as first
Vice-Chairman of its Presidium,
an

office amounting to

.

peace.'

'war and

ident of, the

country.

.

proposed by President Mihail
Kalinin, who said a Vice-Chair¬
man
was needed
to help handle
the increased work of the Presi¬

inter¬
pretation of domestic law and be¬
dium ; in

foreign

-

affairs,

stowal of decorations.
"The

foreign-affairs

and

na¬

tional-defense reorganization was
described

constituting further

as

progress toward the settlement of
the numerous nationalities"^ the

~~~~

significance

republic to
quirements.

.

.

the plan for

reorganization, as approved last
by the Central Committee
of the Communist Party, in an ad¬
week

dress to the
ber

the

in

packed council cham¬
great palace of the

16

Molotov

'

Stalin
of

Josef

Marshal

"Premier

the greatest ovation
session as he entered at

the

behind the rostrum.

and

plauded

Delegates

cheered

after

minutes

for

leader

the

was

v.;":

,

to sub¬

under

pressure

any

sovereignty,"

it

in

Spanish

policy.)

of

the

embargo

in

not.

was

the

Spain,

Madrid

dispatch said."
The

sending,' of oil to Spain by

United

States

discussed

was

Jan. 22 by Dean Acheson, As¬
sistant
Secretary of State, and

good-will,

shown

tutes

on

as

which

she

occasions

many

guarantee

a

face with
of

Charles

P.

Taft,

Director of

the

State Department's Office of War¬
time Economic Affairs, during the
third of a series of four broad¬
entitled

NBC

over

"The

State Department Speaks."

she was able, toward cooperat¬
ing in preventing this great world
conflict
from spreading, consti¬

she

that

will

the maximum

partriotism

serenity
obstacles that

any

she may find in her way. In
doing
so' she
trusts
her
Government,

which fully shares the unanimous
wish of the country—namely, to
that

Other
participants were Adolf A. Berle,
Assistant .Secretary of State, and
Harry Hawkins, Director of the
Office of Economic Affairs;
A report on
to

Spain

oil shipments sent;
referred to in these'

was

columns April

1, 1943, page 1221.
Regarding
their
remarks,
a
Washington dispatch of Jan. 22,
the

to

New York

"Times"

in part:

stated

d-;

;

"Mr. Acheson

explained that oil

that

he

tween

sees

it

development

'now

they

can

and "said

be put

on

a

firm

footing.' He said that each
of the 16 republics making up the
Soviet Union would have its

own

Commissariat of Defense."

the

Polish

dispute and that such
zation is
der

matter that

a

the

exclusive

comes

each

of

it

48

states

,

un¬

responsibility

by

Regarding the views of the for¬

Press Moscow advices stated:

trends

the

new

program

oil

ship¬
area

excellent

on

to

understood

to

be

>

position

with

"Spain

has
of

regard

received

fuel

oil

to

gasoline

from the Caribbean area, virtually
her only source of supply.
The

agreed quotas supply most essen¬

affairs

tial

needs, but make it virtually
impossible for Spain to assemble

any reserves.

Or.

"Matters

George G. Mass

eration of

ing the

Sees $36 Billion

release

in

reconsid¬

Spain's position regard¬
include her failure to

war

Italian

ships

interned

in

her

ports, to control adequately
German agents operating on her
territory and to reduce export of

Dr.

George C. Hass, Director of
Treasury's Division of Re¬

the

search

making
great.

part

that the potentialities
for
inflation
are
very
An Associated Press dis¬

Allied

"We estimate that there will be
1944

during

the

fiscal

year

the

was

a

Spanish

severe

efforts to; reduce

little

ceived

We estimate that in¬

in¬

civil

blow

at

strategic

from

Spain because

of lack of pesetas.

Federal, State and local gov¬
ernments of $22,000,000,000.
That
leaves $126,000,000,000 which we
call disposable income which
peo¬

available

during

debts

German imports, since during the
last six months Germany has re¬

dividuals will pay direct taxes to

ple will have to spend on, goods
and services, if they so choose.

for

payment

This

war.

Hass,

"We estimate income payments
for the fiscal' year 1944 at
$148,-

000,000,000.

step on Spain's
the negotiation recently

as

curred

taken,

follows:dd;-.;-'

as

climactic

was

many

Feb. 4,

on

was

other remarks of Dr.

Germany.

of an agreement with Germany
providing 400,000,000 pesetas
credit (about $40,000,000) to Ger¬

4

patch from Washington,

materials to

"The

and
Statistics, told the
Appropriations Committee,

Feb.

on

war

it

chasing
ple

to

powers

spend,

available for peo¬

if

they

choose

to

about that—the

care

to

from the enemy whether

need

it

not."

or

Mr. Taft rounded out Mr. Ache-*

son's statement with
tion that

the

hemisphere

oil

to

from

come

States

from

but

the

the port of landing and

of

observers

whose sole duty was to

watch the

observers.

A

distribution
was

staff

and

On

the

said

not continue to
even

oil

need

the 1936 foreign affairs would give the So¬
Constitution, which reserved for viets, the legal right to ask for
representation in such
the Government of the U. S. S. R. multiple
in

councils

as

the League of Nations

are

consumers

$90,000,000,000.
of

available

for

amounting

This

to

difference

$36,000,000,000 must be saved

if prices are not

going to

go

we

abroad for oil,

for

expanded

aviation, greater in-

dustrial output, more

-

automobiles,

authoritatively learned more fuel oil furnaces, more oilwas joining the
United States in embargoing ship¬ •burning ships. The Atlantic Ch in¬
that all cour rich
ments of petroleum products to ter 'provides
Spain, were contained in London shall have equal access on e ua.t
Associated Press accounts Jan. 29, terms, to the world's raw : ate-

.

which said:

rials.

the

planned

United

States

suspension
of

oil

from the Caribbean

by

the

shipments
to Spain

area

That -doesn't

foreign countries.
well.

as

d

■

"Americans

oping

apply

are

V

with

negotiations
of
a
purely commercial character."
(The
dispatch
was
received

shortly before the State Depart¬
ment

that

announced

the

up." suspended

in

shipments
pending

Department

ment.

The

tainly

see

been

of
oil

abroad.

The

and

this develop¬

department will

cer¬

to it that the interests

American
resources

reconsidera- break."

us

►;

welcomes

nationals

Washington
had

St to

already devel¬

fields

great

;•

It appli-.s to

which

civilian

have used

We know that

supplies.

will

we

can¬

American

our

prices

present

oil

without exhausting;

will have to look
We

this

"we

that

use

at the rate

it in the past
our

of

subject of oil.,

general

Mr. Hawkins

oil

use

maintained in Spain.

has diplomatic relationships.
"Autonomy of the republics in

at

again at

port of discharge by our own

wants to encourage

services

These

checked at

were

rather

which

Caribbean

ican but in Spanish ships,

tankers, he said,
the

not;

United

and is carried not in Amer¬

and

with

does

Spain

continental

goods

countries

explana¬

an

going from this

it

the

we

wdV:dkd'

■

State

in

material

war

away

during February had no political
significance and was concerned

representatives

and

don'f;

big point is

keep the valuable

spend, of $126,000,000,000 and the

separate

we

was

around

difference between the pur¬

material

don't, but

we

that Great Britain

$90,000,00,000
of
"An Associated Press dispatch
goods and services.
So you have from Madrid said
yesterday that
that

Germany irx
are willing to
Sometimes we

the

want

commercial

"On Jan. 29 advices to the effect

that

really

sell

to

to live, we
buy it from them.

area

involved

they have to

say

material

order

limited

a

and

they

war

sometimes

general reconsideration
Government );of Spain's

this

"If

the

au¬

:

.

is

step
a

amount

in the hands of the President.

"The

diplomats saw in the move
possibilities for one of the broad¬
est, most elastic foreign policies

United

the war.,

places full

now

"The

over-all

separate

for.,foreign

suspended

learned

was

part of

of

foreign policy. But this
would require amendment of the

Constitution which

has

the Associ¬
following to
"The

matter:

thority tonight,

on

the

the

27,
the

Spain for the month of February,

be¬

border

jurisdiction

in

had

ments from the Caribbean

reorgani¬

a

Jan.

Press

States

,

was

both

eign diplomats respecting the new
16 Republics set up, the New York
"World Telegram" in Associated

the

the

connection

no

and

gave

that

of

our

Washington

new

•

r«

•

from which the above

now




•

tional units op the Red Army pre¬

tionality question.'

international

•

■

viously lacked full opportunity, for

Soviet Union would seek to set up

"the right to handle

evaluation

any

House

republics,"
Commissar
said, "marked 'a new step

necessary

Russia's

W. Averell
Harriman, the American Ambas¬
sador, and other envoys filled the
diplomatic boxes.
"Molotov pointed out that na¬

various

changes

"is prepared

dis¬

as

ap¬

might take, especially whether the

reforms," he said, "made

of

(His most specific comment

three

seated until a frantically rung bell

forward in the solution of the na¬

"The

has

He sat alone in a corner

rights to

new

no

has

casts

say

V.

drew

7:50 p.m.

in

.

"Extension of the

States

in

on

ated

voice

permitting each of any government in theworld.
satisfy its own re¬
"Increasing interest was shown

Soviet Union by

a

Government

"Spain's

Moscow

J the Soviet government.)
A United States
parallel to the
Parlia^
Soviet action would be to give

;> v;

"Molotov explained

Vice-Pres¬
national
His name

was

the

•

"Herald stopped the ovation.

.given in the New York
Tribune":",
•
* /
'
-

fur¬

advices,

United

trends

the

attempt

affairs and decide on questions of

As¬

advices

Press

sociated

this

the Moscow

to

of

published

reorganization, declined today to

Kremlin.

tries.

the

and

light

News

see

Associated Press dispatch from

16 individual

Foreign Affairs, with the right to
raise their own army formations

Spain
the

sovereignty and dig¬ was allowed to go to Spain as
the machines and the knowl¬ the Balkan States—Latvia, Lithu¬
part of the bargaining done with
edge to build good products. Our ania and Estonia—and other bor¬ nity are respected."
people here,
those in
Canada, der areas/ the Associated Press
Recently the United States sus¬ neutral countries to keep them
South America, Europe and else¬ pointed out.
pended oil shipments to Spain, from supplying the enemy with
1
'
What he wants from them. Such
where will be eager for them. If
(Secretary of State Hull, appar¬ pending, ii> was indicated by the
industry can keep busy there will ently reflecting the uncertainty of Associated Press, a thorough re¬ bargaining, he emphasized, was
view of the Spanish attitude; from hard bargaining.
be jobs and security for all."
American
diplomats
about
the

-

Commissar

Foreign

by

that

a

—

indisputable

men,

previous day (Feb. 1) the Supreme Soviet (Russian
adopted
unanimously a'3>—
—
~

proposal

as

"Times,"
;d;;d.:: •
communique

added.

idle," he as¬ ity vote. "if we keep our feet on
(Foremost is the question of
the
ground, think straight and how Moscow's revolutionary move
learn to work things out for our¬ may work to Soviet
advantage in
selves without relying too much winning
recognition of her as¬
on the Government.
We have the serted right to political control of
"No one should be

Press)

,

or

London would appear to
put
United States at a decided

the

Spain

previous

tion of general relations between

cir¬
whatever against its
right to maintain firmly such a
position of neutrality."
"Every country is obliged to
respect this attitude as an act of

serted,

an

-

by

the

reported

from<S>

but

cumstances

cisions would be made
by major¬

war.

Weight En Allied Council

in

controlled

On

Government

be

states

word.

"Tne
suspension of American
shipments was interpreted by the
British press as a final showdown.

"the

mit to

we

opportunity to swing great weight in Allied councils,
was
seen
on
Feb. 2 by foreign diplomats examining the Soviet
Union's reconstruction of its relationships of its 16 republics with the
stated

for

the

Spanish neutrality is respected."
The communique declared that
Generalissimo Francisco Franco's

should have large- disadvantage in any future
league
unemployment
after
the where, presumably, important de¬
why

Russia's

was

votes

of

Britain

that

see

cussed all precautionary measures

in

to

sense

to

that may be necessary to see that

future

quarters

true

York

,

"Furthermore,"
said

the

believed

(Associated

continued:

Britain

any

was

diplomatic

move.:

world, it

Great
in

on

decision

most

We can't do enough for those

Russia's lew I6-Slate Plan Seen As

outside

and

the

nationals

own

in the New

given

move

which

its

Madrid

world organization.

full

love For Greater

votes

in

together

Spain

Great

Associated Press accounts from Madrid

foreign subjects. The advices from

in¬

was

Russian

as a

the

States

could

affairs

neutral

working

are

Spanish Cabinet ratified that night

from

independent

an

States

Feb. 4 that

on

policy of strict neutrality
and announced it would demand the strictest conformity not
only

cluding' those at the Willow Run directed primarily at Great Brit¬
bomber plant owned by the Gov¬ ain
which, in the League of Na¬
ernment," he stated, "and we want tions, enjoyed the added advan¬
to keep as many of them as we tage of a vote for each member
can.
We want to help the soldiers of
the
British
Commonwealth.
and sailors when they get back. Russia had
only one.

over.

pretty much like the last

the

United Press advices from Wash¬

voice

United

day, Feb. 3,

Ever since the Selden patent suit ington on Feb, 2 had the following
we've been fighting for the sur¬ to
say
regarding Russia's • new
vival of competition. One of the plan:
'Id -lldd-; V-A
.The Soviet Union's decision to
things behind this present war is

industry, is going to do after the
war," he said. "All of us are busy
doing

f

the

remains

Advices to this effect were contained in mediate developments."

ago.

years

Press

619

will

get

in foreign
an

even

Willkie Advocates Taxing Ourselves Beyond

|

Any Limit Imagined Possible

(Continued from first page)
''■(/.
:
supplant
the
peacemeal despite this material power, of
growths which make up the pres¬ our former ideological leadership.
.

would
ent

structure.

tax

mit

Efforts

It would per¬

sane, simplified tax struc¬
The wartime excess profits

a

define America as a

to

in terms of foreign

world power

policy have given rise to several
tax should be repealed.
One, which
It would schools of thought.
be well to recognize in peacetime maintains a position of extreme
that
excess
argues * that
the
profits taxes of all nationalism,
kinds frequently punish the com-' United States should endeavor to
ture.

petents in comparison with the be almost wholly self-sufficient
incompetents, and have a way of and make no arrangements of
creating inequitable competitive any importance with the rest of
Allied to, or growing
'advantages
and ") disadvantages the world.
nationalistic school,
which retard industrial advance out of this
and cost the economy as a whole there are those who contemplate
than

dollars

more

the

yield to

they

v■
•.:; 'v;;'
"We should also repeal the so-

Treasury.'

called

<.

game
tax,"
of two parts, the

"guessing
consists

which

Value

Declared

Profits

Excess

the

and

Capital Stock Tax.
These accomplish no" constructive
Tax

purpose

devise
ways
and
encouraging
venture

must

"We

.

of

means

capital to flow into- new enter¬
prises, and this means that we
must find a practical way of re¬
lieving
new
enterprises
from
crippling taxation for a reason¬
able period.
•
/
-'p/-.:"And, finally, we should thor¬
oughly inquire into all forms of
incentive taxation by which busi¬
ness and industry can be stimu¬
lated to adopt policies that will

expand employment and advance
of society."

welfare

the

"Times" follows:
Willkie as

of Mr.

address

The

"Times"

given in the New York
follows ih full:
The

v

,

in which we are

struggle

engaged has imposed on all of us
a number of extraordinary duties.
One
of the
most important of
these is

duty toward the future.

a

The nature of the victory that we

abil¬

gain depends greatly on our
ity to look ahead clearly.
It

I

duty,

fulfillment

the

in

is

it,

take

sort of American

some
>

of this

present series of conferences un¬
der the title of "America Plans

With both versions of this ex¬

For, whether we I

to

will

our

balance off one

to

or

against the other.
likewise

opposed to this
interpretation of American power.
I

am

It

is

of

sheer

the

our

the

that

true

power

position will impose on us
necessity of political action in

international

We

affairs.

has become

future

a

prosperity

and

peace

earth depend in large

the
ure

of

meas¬

policies originated here.

upon

First, however, we must be clear
as
to what we mean by power.
The fact is that the United States
has

been

always
when

Even

formed
lation

world

a

Union

our

1789, when

in

lieves that

future

must

our

first

was

our

popu¬

our

less,

we

yet

of

one

mightiest powers on earth.
Our power in those

gigantic world struggle for
existence, we must have a fiscal
policy that squarely faces the eco¬

better

housing,

an

the

of

creation

operation and promote the growth
institutions
for the past

several years
we have argued these weighty is¬
sues
at great length.
We have
argued them primarily in terms
of foreign policy because that is
the way they were presented to
us by the tragic course of events.
I believe
come

for

fillment

us

the

kind. ,'

:

but exciting experiment,
has now proved itself.
Our free
on

riches,

in

tween

made
earth.

our

this

of

of

and

those

test be¬
those

of

will

we

will obtain

to the future

in

a

And
we

sense

This

the great

is

,

ironically this
that

shall

we

thereby
load

a

to

as

I believe,.- has
sufficiently clear.
yet without it we shall fall

And
into

made

grievous—indeed,
policy.

fatal—er¬

of fiscal

rors

do

I

not want

time this

tax

now

both

the

in

a

confusion

we

high

combat the danger

during

taxes

lity

it goes on, the problem of
wil
lbe largely taken

as

inflation

•

capacity
combat

Administra¬

us we

our

ap¬

shall find it whol¬

solve

domestic

our

our

it

base.

ourselves

the

future.

have

can

no

Without
effective

this

we

American

Now, of
ment

of

course, in the achieve¬
this
general domestic

complex

many

be involved.
no

single

than

our

But

factor

I

factors
can

more

"fiscal

will

think

of

important

policy."

The

As any doctor

knows, unless the
chemically bal-

in

taxing
infla¬

combat

tion,-with the idea of refunding
the money later, we shall not pay
the

effort

only
is

itself

All else must be sac¬

1
^

the

course,

; threatened

if

is

effort

war

destroy our hu¬

we

by taxing them be¬

man resources

low the level of necessity; but we

real necessity
comfortable peacetime

talking

and

not /

about

habits.

that

tax

corporate structure

our

to a

point that spells insolvency or to

point

a

business

prevents

that

from

the

after the war.

come

impossible.
refunds

gering
the

Thus,

in

proposing

the Treasury is* endan¬
the; post-war future for

sake of a measure of politi¬
advantage in the present. ;

cal

Now,I. know that in the opin¬
ion of

Congress,

the bill

evidenced by

as

which the Senate and

on

House Conference Committee has

agreed, the $8,000,000,000
proposal is too high.

Treas¬
If we

ury

be

to

If

realistic

we

should

we

tional

to

are

aim

taxes

it

is

far

raise

to

addi¬

in

than

more

too

realistic

be

double

that proposal.

Many will exclaim that in mak¬
ing any such suggestion we are
being
of

threatened if we

is likewise

It

experts
are
real danger of

economy,- inflation
control will
become even more difficult, if not

low.

the bone.

our

If, at that time, large/refund ob¬
ligations are hanging over the

rifice

to

of

many

inflation will

are

Of

limit

,

Moreover,
agreed

the

to

war

unrealistic.

wholly
If

course.

taining in

the comforts and

war

of

conveniences

realistic.

the

it

peace

have

For

concerning

Yes,

insist upon main¬

we

is

un¬

illusions

no

effect

of

raising

a sum on every man, woman

intelligently

peacetime production, and provid¬

It cannot be

future peacetime fiscal policy

ing jobs for the returning soldiers

is

necessary

consider

for

a

;

are

moment

to

to

our

It is fatal

times,

and the

in these times.

this

problem

who

have

the

realistically—as

studied

actually

American

it

all

agree—we

materially
standard

of

lower
living

during the war.
And this not
merely by submitting to ration¬
ing and restricted use of gasoline
and minor

creasing

discomforts,

the

amounts

have hitherto saved,
reduction

charge

of

of

the

by de¬

which

we

but by actual

standards—the

our habits to the use
things that constitute

those

necessitous
In

our

or

living.

four

years

from

fiscal

war

workers.

Beyond the precautions

wartime

policy and
to look behind the political mas¬
querading which has characterized

of

to

child

must

foreign policy whatever.

only

and

Congress

due

We must hew the definition

automatically
But

such

the

In order to discuss

lies

shall

we

inflation.

springing to action immedi¬
ately after the war, converting to

and

1941
responsibility that bloodstream is
through
fiscal
1944
this
the maintenance, anced, the cells cannot do their country will have obligated itself




must
the war
of infla¬

why

reason.

is to

rificed and all must Share the sac¬

Nevertheless

is

confusion—a

which

for

the question

war

threatened.

are

spend all my

on

legislation

of

state

to

evening
taxation.

war

our

world

that

,

is

the

when

we

of debt

reached

limit

That

self.

distinction,

been

not

broaden

we

other than ideological.

shoulder

chief

bear

In order to prevent

inade¬

an

jeopardize the
things for which we fight.

very

of

and

amount

transfer such

tion

have fiscal policy of an economic sys¬
created the greatest navy in his¬ tem is like the bloodstream of the
tory, the greatest air force, and human body, which carries oxy¬
one
of the world's great armies. gen
and
other
indispensable
Today we are a world power chemicals to the billions of cells.
powers,

Morgenthau,

According to Mr.
the

ten¬

■-:

capacity.

is inevitably
the fact that we

to

cannot

the richest aim,

Out

hour

ideas

totalitarian

us

of office.,

whole

Administration's

ure

for

present time

the

In

ahead of

of

,

gerous

nation

the

gained:in blood.C.Vy:

to

sary y

neces¬

effective

our

preserve

-

and womanpower, and
the industrial structure by which
manpower

they

live,

and

Now,
are

taxed, for the pres¬

have not done this.
not doing it. And neither
we

Congress

the Administration
intention of doing

nor

expresses

it.

taxed,

be

mifst

of the American future.

ervation

We

group,

individual

and ruthlessly

dollar in
corporate

other

every

income"

every

men;

American Idea, which our
forefathers undertook as a dan¬

society has

risk:

tremendous

policy

blame.

days, how¬ problems without

The

argu-.

forward as to the
principal reason for hgiher taxes,
xms
argument
illustrates, that
lack
of understanding
of fiscal
affairs which
has
characterized

lose in debt the victory We have

supprot us in health.

of self- of our
Whatever the political risk, the
power out of the native
government by'men whose future rock of our convictions—the idea political leader is not worth his
would depend, not upon the Will that made
us
a
world power in salt who shirks the responsibility
of kings or the plans of dictators,
the first place.
■
; of presenting wartime necessities
but upon their own innate cour¬
But the realization of that idea to the people.
We have been fol¬
age and abilities.
This American in the modern world is
contingent lowing a fiscal primrose path. It
Idea changed the whole course of
will not lead to a solution of our
upon the health of our domestic
history.
No riches, no navy, no economy.
Hence, domestic eco¬ problems. It is time for us to face
army
had ever exercised such nomic health must provide the
power over the destinies of man¬ foundation for our
The fact is that if
we
solve
foreign policy
free

by

look toward the fu¬

we

as

ture today we face

the.
economic
which will either

or

Any discussion of fiscal
at

For

upon

bloodstream,
starve

that the time has

now

us

proach.

We

Idea—the Idea of self-govr

ernment

day forward, whether in peace or
m
war.'
'

broader educa¬

or

;V'•;
regard to :some'■ of it.
ever,
was neither financial nor our
There is an old political adage:
foreign policy.
And by the
military; we were of small ac¬ same
token,' we can define our Vote for every appropriation; vote
count in the:diplomatic councils
position as a world power only against every tax measure.
That
of the world.
Our power resided
with our- domestic policy as a is dubious
counsel in ordinary
in

$300,000,000,000.
At present the interest on our

tion, or sounder health.
/'A';;;;;
All these depend for-their ful¬

It be-:
hope for the quate

best

in

lies

in debt and all but defense¬
were

in the

revenue

ly impossible to place foreign
policy and domestic policy in con¬
the
venient
separate
compartments.

were

of the

because

puts

extraordinary expenditures. There tion. I am well aware that infla¬
our people will be the cost of liquidation of tion is a danger, yet it is certainly
policy, of the war. There will be the vital not the chief reason for high taxes.
chief reason
we
need
their Government.
In order to as¬ expenditures for soldier rehabili¬ The
big
sume
If we include the costs of taxes is to pay for a big war with¬
our; proper responsibilities tation.
in the world. and play the role this period among our ' war. costs out mortgaging our future more
there indispensable to. our welfare I believe that we shall face the than is necessary.
If we pay for
at home, in order even to survive peace with a public debt of over! the war,to the extent of our abK

poten¬

international

an

power.

only 4,000,000 and we

was

which the Government will incur

in the

it

body, v'hV/
Thusc the destiny of
rests
upon
the; fiscal

this we have
complicated by
a
single duty: to ,1 tax ourselves
tial enemies, and we must always
are engaged in war. For, as exam¬
now
beyond any limit that • we
help to strengthen our friends.
V ination
shows, the fiscal require¬ have hitherto imagined possible.
But to adopt the power game
ments of war are, in almost every Every dollar of war, cost that we
as
the object of our diplomacy
instance, the opposite of the fis¬ pass on to the future thins the
could, only lead us to recurring
cal requirements, of peace.
If we. fiscal blood stream of the future.
conflict.
We do not want to live
were to apply a designated fiscal
There is only one principle to ap¬
by secret treaties in the constant
policy for war- in time of peace ply to war taxation, .and that is a
threat of war, nor do our great
we should ruin our American sys¬
hard principle: ' we must ;tax to
political institutions lend them¬ tem of individual initiative and
the limit every- dollar, corporate
selves to such a course. Our dem¬
opportunity./
v'v and individual,; that Is capable of
ocratic process calls for a diplo¬
On the other hand, if we use bearing a tax,; particularly those
macy
far more open than the
peacetime taxation methods and corporate and individual earnings
diplomacy of the power game.-.
for
raising wartime which are created by the war it¬
There is a third school of think¬ principles
friends from

our

States of free
Now
world power.
The

not, the United

or

tually starve all the cells

unrealistic
ment

•

organization by
which to safeguard the rights of
and Dreams,"
-.-j.;"^^-V
small
nations,
preserve
world
The editors have asked me to¬
night to discuss "America as a peace, bring about economic coit

or even

economic system,

public debt averages almost ex¬ care., of. -:'v; ■ Vr ;: f •
'k-y-::
nomic realities.
actly 2%.
It is, I believe, opti¬ /-.The Treasury refund provision
treme nationalism
I profoundly,
Moreover, we; are dependent mistic' to hope that we can keep i'S a disguised forced-savings pro¬
disagree.
I/am not against forced
upon our fiscal policy, now and the interest rate that low indefi¬ gram.
Then there is a school which
in the future, for the realization nitely;
yet even if we do, the savings as such:" but I am for
believes
that the United States
of all
the economic
and
social service charge on $300,000,000,000 forced savings only after we have
should make itself the master of
aims
that we
want
to
achieve of debt will be $6,000,000,000 per fulfilled our tax duties.
Indeed,
what* is commonly called "power
after the war.
this refund provision is, one sus¬
Without a realis¬ year.:A;;;?;-u
<<•y ;■■■
•,£''/;■?politics." / According to this con¬ tic fiscal policy we cannot have
That is a staggering charge- pects, a political gesture, for the
cept we should seek to maintain full employment. Without such a only a little less than our whole whole inflation argument upon
world stability by the open or
policy we cannot finance the em Federal budget as recently as 1934. which it is predicated is obvious¬
secret manipulation of other na¬
largement
of
social
'
security: And it is that contemplated debt ly misleading.
j
tions, using our great material Without
it
we
cannot
attain and that charge which must deter¬
In taxing ourselves to pay for
power
either to constrain them
higher standards
of living,' or mine our fiscal policy from this the war up to the limit of our
.

New ing, to whcih I subscribe.

York "Times" has inaugurated the

World Power."

survive. So, in our on account of the war to the ex¬
whose cells are tent of $307,000,000,000. We can¬
135,000,000 American citizens, the not predict how long-these vast
fiscal
bloodstream
must, flow expenditures must continue, but
freely.
It must flow under even we can say with certainty that
and
proper
pressures»
And
it .at the conclusion of the war our
must provide the cells with the total public debt will be not less
economic rewards and incentives than $250,000,000,000.
In my opi¬
necessary
for their well-being. nion, this figure is low,
An economic bloodstream com¬
.Moreover, immediately after the
posed largely of debt will even¬ war there must follow a period in
work,

.

The

that

building
empire.

know

Willkie's address, as given

Mr.

in the New York

like

Thursday, February 10, 1944

THE COMMERCIAL & FINANCIAL CHRONICLE

620

any

month

Last

President

the

"realistic"

tax

called

for

gram.

Since he did not specify in

his

a

statement

the nature of

the

the

size

or

"realistic" tax pro¬

that his
of realism is represented by

gram,

idea

a

either

pro¬

we

must

assume

recommendations

of his

retary of the Treasury.

>

Sec¬
.

;

Yet, surely, in the light of a
probable $300,000,000,000 debt, the
Treasury program broached last
fall cannot be described

istic."

to raise an

000.

as

But

program purported
additional $10.600,000-

this

figure

a

was

a

misleading

because

cluded

the program in¬
provision to refund some

$2,700,000,000 of that amount after
the war.
The next expectant in¬
crease
proposed by the Treasury
was; therefore, only $8,000,000,000.
The Treasury program is also

United

States.

raised by

petty sac¬
rifices.; It will require major and,
in some cases, dangerous sacri¬
The habits of every mem¬

fices.

of every

ber

will have to

group

change.

;

Those

this

to

And
if

save

that

we

they all add

we

up

have not

we

going
living

are

standard

our

the future

'

facts

fact that

one

that

faced:

the

are1

face.

must

of

to

in

standard of living

our

today must go down.

'

-

There are 10,000,000 men, the
physical pick of the nation, in our
armed
forces;
10,000,000 young

who

men

a

dislo¬

habits, their

com¬

and their living standards
profound than any tax

forts,
far

suffered

have

cation in their

more

There

create.

can

be

can

very

few Americans who haven't some

relative, some close friend among
them.
By the end of the year,
will

them

do

not

three-quarters

told,

are

we

be

yet

of

And

we

overseas.

know

how

many

of

them will stay there forever.
The

"real¬

That

the

in

be

boys who come home will

hungry

shall

we

the

for
of

rewards

and

say

to

occupations
What
them if, while
peace.

they are gone, we have rolled up
a
debt so vast that they will be
saddled all the rest of their lives
with
at

interest

home

What
have

on

have

shall
faced

we

in

money

refused
say

their

to

that
to

men

persons

we

pay?
who

the

Volume 159

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4254

peacetime, if we are to have any¬
thing approaching full employ¬
ment, those qualities
must
be

cod¬ distance, yet it ik difficult to see
how
they can total less than
The normal nonexpense, by clinging to the liv¬ $7,000,000,000.
military
cost
of
Government
ing standards of peace?
Shall we say: "We are sorry?" should be ground down to a mini¬

hazards of war, if we have
dled

ourselves, at their eventual

Shall

we

"It

say:

important

to

accustomed

seemed more
to live in our

us

manner

than

to

re¬

stimulated

the debt that you

understanding of the
'issues involved, and tney will go
•their duty by their country,* how¬
ever incredibly painful it may be.
All

an

this

about

talk

clarified

not

inflation

issue

the

for

has
our

The Administration has counted
too

little

on

the

people's sense' of

Ar

obligation.
It

is

but

A"

that Individ¬

natural

ual citizens

occupied with

every¬

day matters should put aside the
of the country's fiscal

problem

of

which

by

only

indeed

is

There

of

meet the demands

way

one

legitimately

can

we

-

these

system

social structure.

budget of

a

$20,000,000,000 or. more.
This is
through
increased
productivity.
they should fail to realize the
The natural income, which is now
deadly, serious
nature
of
the
reaching toward the $160,000,000,armed
conflict
now
facing us.
000 mark, to meet such a budget
Particularly, when our govern¬

future.

It is likewise natural that

leaders

mental

issues

do

clear,, but,

confuse
ments

not

on

make

the

the contrary,

the

optimistic,

above

some

If, however, it is brought home
something more than mere

that

is

involved

in

the

coun¬

try's fiscal policy, that our whole
of living is at stake;
if the
people are permitted to
'.know that in the impending in¬
vasion of the European continent
—so
essential to our victory—we
future way

that of

low limit

the

should

income

the

in¬

Or

another

matter

;

continues

proportionately.

crease;

state

1942

iVy A

;

price: level

national

of

pessimistic.

•

000,000 at 1942 prices.,If

some

—

dollars

should never fall below $120,000,-

with conflicting state¬

us

to

way:

-

turn,
developed

the wheels of industry must
and

must

markets

be

or

served
vides

big enough so that every worker
has a chance of a job at good pay.
Now in a real sense the objec¬

ent tax

mit

It would

structure.

per¬

sane, simplified tax
The wartime excess

struc¬
ture.,
prof¬
its tax should be repealed.
It
would be well to recognize in
peacetime
that
excess
profits
taxes of all kinds frequently pun¬
ish the competents in comparison
with the incompetents, and have
a
way
of creating inequitable
competitive advantages and dis¬
advantages which retard indus¬
a

trial

and

advance

the

cost

econ¬

whole more dollars than
they yield to. the Treasury.
We should also repeal the so-

omy as a

"guessing game tax," which
consists of two parts, the Declared
called

if

be

much

private

Government of Mexico kicked
oil

better

industry

In

for

this

pro¬

which

to

time

rapidly

Gulf

production

and

The

taxes

ness

We

;...

:

but

is adjusted

to

in

also

When

our

country

power

oil

on

This

excise taxes

non-luxuries.

on

addition,

Capital Stock Tax. These accom¬
plish no constructive purpose.

insofar

ularly

the

in

as

Mr. Roosevelt

was

to

con¬

cerned, this policy prevailed. Corfor

Hull, who is
orderliness

more

in

than

partment

his

a

stickler

State

De¬

ideologies,
wrote periodical notes to Carde¬
nas; very firm ones, too.
As fast

In

lowering of
partic-'
lower and middle

means

Government

give any protection to them. And

the individual income tax,

it

Liberal

our

dell

Value Excess Profits Tax and the

great Liberaly Prole¬

a

it would be unheard of

tions and

instances the elimination of

some

this

hand-in-

companies got caught in this

for

reduction, and in

a

working

in

Liberal
outcry
here
in
Washington. Why, our oil com¬
panies had been robbing those
people to the South for genera¬

:.;A

means

was

this

A great Liberal,

Government

awful

jobs, it; is essential to plan a post¬
war
tax program that will take
away as little as possible of the
money normally spent by individ¬
uals
on
consumer
goods- and
r

protect

Anyway, as regards the oil com¬
panies and Mexico, there was an

in

For

consume.

to

quite sure, but we seem to recall
there was pretty much of a par¬
allel with regard to Bolivia.

em¬

a high level of production and so
provide the maximum number of

■

think,
to pro¬

cross-tide of Liberalism. We aren't

order to maintain the economy at

services.

easy

nothing

glove with

peacetime produc¬

to

Persian

tarian Government in Mexico. Our

ployment, full consumption anc
full production require a lowering
of all
taxes
affecting the peo¬
ples

the

should

more

instance, though.

ecohomy

post-war aims of full

our

in

one

Oil and Sinclair in

Proletarian

.

taxes

did

Standard

bring; the
changes not only in busi¬

individuals.

and

tect.

post-war .will

need for

those

than
area

they would be

to peace¬
to mitigate

the losses of conversion.

tion

in

closer

explored by
business to

encourage

itself

convert

be

properties and told
they could go hang.
Of
American owned oil fields
near-by
Mexico
are
much

course,

purpose.

should

our

the place,

over

their

them

addition, I believe that other

measures

producers all

took

them with adequate sever¬

marked

Washington

(Continued from first page)

ance pay.
In order to encourage
this, appropriate legislation should
be passed at once to enable em¬
ployers to set up reserves ear¬

.

the

to

per

single
corporation
tax
would supplant
the • peacemeal
growths which make up the pres¬

re¬

or

$25,000

amount

This

ruin
and our
•>.:.: /AyV,,y'y.;

lead

would

■

given

a

$50,000. The
rate on corporations earning less
than $25,000 or: $50,000 should be
somewhat lower,: ■;
•;■. •:::;<-■'%' ,f

year—say

care

of

either

But

political

our

take

by inflation,

debt

pudiation.
courses

could

we

course

the

of

It has obscured it.

people.

Of

than

more

make a budget of a
minimum
of
$20,000,000,000, at
1942
prices,
absolutely, inesca¬
pable.
A - rise in prices will,
necessarily," increase this budget.

From

Government,

society—will

,

will

things

be¬

and
peacetime
methods, our wartime
taxation program, both corporate
and
individual, must be com¬
pletely revised when peace comes.
The corporation tax should con¬
sist simply of a single, ungraduated tax applicable to the net in¬
come of all corporations earning

have to

people

difference

and

needs

larger than the pre-war figure.

We shall have to undertake a
boys will
pay?"
; truly dynamic social security pro¬
So-called political experts tell gram for the purpose of increas¬
you
that the American people ing the health and effectiveness
our
citizens whose
wil never stand for a tough tax of those of
program.
I do not agree with usual standard of living is too
All this and many other
those so-called experts.
Give the low.

duce

channels'

this

The

wartime

tween

must be many times

of veterans

of

Because

selves, at least temporarily, with¬
out jobs.

of
course,
which must guarantee their subsistence;
•yet they—and indeed our whole

provide jobs.

But aid and rehabilitation

mum.

into

621

a

he did so,

as

here

sador

any

the Mexican ambas¬
would

receive

Word

from

the Sumner Welles crowd
:'A.V.,
that the Mexican Government was
means
of
encouraging
venture
I have
put forward these tax
not to pay, any attention to Hull
tive of our post-war .tax program capital to flow into new enter¬ suggestions, not as a comprehen¬
at all.
The Mexican Government
sive plan but as illustrations of
must be identical with the object prises, and this means that we
didn't do it either. V
: \
;;
must find a practical way of re-, the kind of measures I believe'to
tive of our wartime tax program
are undertaking one of the most
Sometime ago we read, in the
lieving
new
enterprises
from be necessary, now and in the fu¬
stupendous and hazardous opera¬ —namely, the preservation of the
crippling taxation for a reason¬ ture, in order to preserve for our¬ papers that Sinclair had finally
tions of military history, possibly Idea upon which we were found¬
able, period.
',
selves, our fighting men and our got some of his money; we don't
ed:
self-government 1 by • men
^involving untold loss of life; if
And, finally, we should thor¬ children a system operated by know- how Standard : Oil ever
the stark facts are presented to whose future depends upon their
oughly inquire into all forms of free1 men on their own initiative. came out, Neither got anything
I them they will rise to any sac¬ own innate courage and abilities;
incentive taxation by which busi¬ A system that will unleash the like its full claims. But as we say,
But, as I indicated at the begin¬
rifice and they, will do-so stead- ;
ness
and industry can be stimu¬
energies of our citizens, that will we suppose there will be no ques¬
ning,; the fiscal policy that will
fastiy.
Ai- - y '
^ 'yy':: a:;\; ■
lated to adopt policies that will give them a chance to get ahead, tion about our troopsv protecting
But while I sincerely believe achieve this - objective in peace¬
expand employment and advance that will allow the establishment American holdings in the Persian
that the people will accept these time will be almost the exact op¬
the; welfare of society. A.;:,
V%. of new industries that will raise Gulf area. That will be more in¬
burdens if the Issues are made posite of that necessary, in. war¬
■In the interests of stability, we the living standards of the people. volved.
Probably that's the ex¬
time.
After the war, in order to
clear, I know that they will at the
should also, in my opinion^ lib¬
If we want to preserve this sys¬
planation.; .':•'
• '■}''%;■ ■
A''-'
same
time demand an economy stimulate the flow of goods and
eralize the present provisions by
tem we must pay for it, and pay
in Government of a severity equal services, the taking of risks, the
Posted on the bulletin board at
which businesses are entitled to for it now.
Corporations and in¬
to their sacrifice.
They will de¬ creation of millions of jobs, taxes
dividuals alike must pour into the the White House every week day
carry forward, losses: for a period
mand that the war shall not be must be minimized rather than
is a list of the President's engage¬
of two years ortly.
In order not Federal Treasury
every
dollar
We must solve the
used as an excuse for the con¬ maximized.
ments for- the day — diplomats,
to penalize businesses subject to
that can be spared from the hard
tinued extravagant waste of their post-war tax problem not by im¬
cyclical, fluctuations, this period back-breaking business of fight¬ Government officials, out of town
posing the biggest possible rates
money; they will demand that the
should be extended.
visitors, etc. The other day there
ing the biggest war in history.
administration of the war effort on our income but by creating the
There
is one problem in the
Of course, this will mean hard¬ was this notation: 1."v-AKAV ;; *
at home shall be untouched with biggest possible income on which
2:30 p. m.—Mrs. Roosevelt. present tax structure which im¬ ship; of course, this will mean
to impose relatively modest rates.
politics and conducted with com¬
It was not disclosed whether
pinges on botli the • corporation discomfort.; But the long future
For,
properly
petence, efficiency and singleness
managed
and and the individual taxpayer and is worth all the sacrifice.
she, presumably passing through
:
of purpose.
with encouragement to expand,'
which may prove somewhat dif¬
There is not much comfort in a town, just dropped by to pay her
I hope I have made clear my our peacetime economy will yield
ficult of .solution.
As things now foxhole.;
There's > little comfort respects or whether her engage¬
.profound
conviction
that
we more tax income from relatively stand, corporation dividends suf¬ waist-deep in the mud of Guadal¬ ment had to do with State busi¬
should pay now for as much of low
rates, both individual; and fer a double fax, one at their canal.
It is not comfortable to ness. Undoubtedly it could be ex¬
the war as we possibly can. ' And corporate,
than from relatively source, in the form of a corpora¬ crash-land a
flaming plane. There plained that they have known
I hope I have made clear the fis¬ high ones. • '
v
-V tion income, tax and the other at
each other for a long time. AA'jL
is small comfort in the cold sea;
The difference lies in the fact
cal reason for imposing on our¬
their outlet in the form of the in¬ there is no comfort as a prisoner
selves
such
a
heavy
burden, that today, in war, our incentives
Mr. Roosevelt's ears are prob¬
dividual income tax. On the other; of the Japs.
Why should we be
:
namely, the preservation of the are provided' for us in our re¬
ably burning this week.. Through¬
hand, interest payable on bonds is1 comfortable?-';. LA.",■■ '•■ ;•':y;"';\. ;■
future which is precious to every lentless
pursuit of the enemy; a deductible item in the corpora¬
out the country the Republicans
whereas tomorrow, in peace, we
American
*
*y*
■ a?•
■
are having Lincoln Day meetings,
tion
income
statement
before
A formidable fact that looms up must -create our incentives from
more
than 2,000 of them.
The
taxes.
The effect of this arrange¬
when we face, that future is the the
energies and aspirations of ment is to encourage corporations
theme of all the speeches seems
size of the Federal budget,
It is our citizens.
v'.j.:v"
■ j
to stress Lincoln's humility and to
to
finance i themselves
by debt
In'" order
to
accomplish
this rather than
extremely improbable that in our
point out that he would have been
by equity.
;;
; •
The trucking industry's margin
lifetime we shall ever see a Fed¬ transition we must arouse once
grieved had any large number of
And such financing has evil re¬
between profit and loss continued
eral budget under $20,000,000,000, more in men the hope of reward;
Americans looked upon him as an
sults because it builds up a large
to
'measured in 1942 prices.
In any not unlimited and consequently
parrow
in November, with indispensable man. Not bad.
debt structure Which greatly ag¬
such estimate there are, of course, ruthless reward, but fair, suffi¬
operating expenses almost 98% of
gravates depressions and increases
cient reward 'that will drive us
incalculable factors.
•;, •
revenues,
according
to
figures
the danger of bankruptcy. - Also
ahead, vy; A;'; %;
compiled by the American Truck¬
.' iL' LA? ~... it
;
We do not know, for instance,

devise

must

We

and

ways

brackets.

■:

^■

.

.

.

.

,

'

*

,

,

.

t

,

■

,

,

,

,

•

■

(

..

military establishment

It is only by the application of

maintain
—and as I have so often pointed
out, one of the important reasons

this principle that we can eventu¬

how
we

for

big

; an

a

going to have to

are

■

international organization

joint force would help
to keep the enormous item down.
There are many other items that
we
cannot easily foresee; yet we
is'that

can

tal

see

a

easily enough that

figure is going

the to¬

ally solve
at the

fold

time fulfill

same

economic

sibilities.
-

$7,000,000,000 for the military and naval
establishment
,(a
figure
that
might easily be doubled), ye have
$13,000,000,000 of necessary ex¬
penditures to start with.
I do not think it would be real¬
istic to attempt to itemize other
Government requirements at this

s6.000.000.000. If we allow




and

are

producing
and

mani¬

L

lq wartime all of

dustries

our

social respon¬

:•

>

major in¬

our

primarily engaged in
the Government,

for

to
Government
And those that are
engaged in the manufacture of ci¬
vilian products, in view of prior¬
ities,
rationing
and
restricted
the

y

rected

are

ordinary

time

not

concerned

be

should

cor¬

by eliminating the present
on dividend payments.

double tax
The

various possible

But

nicalities.

all the methods
—to

methods for

complicated tech¬
the objective of
is simple enough
equity financing

doing this raise

stimulate

make

entire sys¬

our

problems

tem*

of peace¬

flexible.

more

There is one item
to

add

this is

this

to
an

,

:

\

Based

reports
from
274
Class I carriers of property in 43

tax; program,

item for the

the

conversion

war

many

women

period

being devoted to the gi¬
gantic needs of wartime produc¬ have been
tion
and
distribution.
But
in war effort

and

immediate

During

after

the

thousands of men and

whose long hours

of work

indispensable
may

well find

on

States and the District of Colum¬

the

bia,
from

showed

study

vember

revenues

No¬
1.4%

October, while expenses de¬

creased 0.8%.
November

costs

to

the

them¬

The
enues

The
Treasury Department in
Washington has issued its custom¬
ary
monthly statement, showing

held in

were

12.5%

the

United

its

moneys

States Treas¬

and
by
Federal
Reserve
and agents.
The figures

Banks

time

earlier, this

over a year

meanwhile

deducting

after

tion

,

represented

circula¬

amount of money in

the

ury

f

.revenues

gain of 7.6%

but

that

shrank

are

less

for

Dec.

31,

and show that the money, in

1943

circulation at that date (including

higher.

1 should like

attention of the Congress.

Money In Circulation

ing Associations.

a

and thus to

with

growth.
Today the incentive, the energy,
the
imagination
that
normally
are
the very yeast of our econ¬
omy are

venture cap¬

v

_

.

markets,

new

situation

This

according

to be breath¬ specifications.

taking.
As already stated, the interest
on our debt will be a minimum of

fiscal problems and

our

discourages

ital.":'-

.

ratio
was

of
97.7

expenses

in

to

rev¬

November, as

of

course,

vaults

of

with 97.1 in October
and 93.5 in November, 1942.

Federal

Ninety-nine of the 274 reoort^g
carriers, representing 36.1% of the
aggregate revenues, suffered op¬
erating losses in November, 76

176.489

compared

$20,449,387,607

compares

31.

showed operating

deficits for Oc¬
tober, and 55 renorted losses for

outbreak

November of last year..

was

that h

on

as

in

banks

bank
of

System)

the
was

against $19,918,-

Nov. 30, 1943 and $15,-

on

410,130,365
Oct.

held

that
member

Reserve

Dec. 31, 1942, and
with $5,698,214,612 on
on

1920.

Just

of the

first World War,

June 30,

$3,459,434,174.

before

the

1914, the total

Thursday, February 10, 1944

CHRONICLE

THE COMMERCIAL & FINANCIAL

622

Highest Standard Of Uving In Post-War Period
:
Predicted Bsf Vice-President Wallace f

The Financial Situatioii |
(Continued from first page)

public debt is qpder discus-; lie debt. If it is not possible
as appears to be generally
sion?
The general doctrines
here expressed by the Vice- conceded—to take in taxes
President and Messrs. Kajser enough
of current income
and Willkie are, of course, not payments to meet the full
new.
In one form or another, load of public expenditures—
at times quite directly and at if it is not possible to do so
others more by implication, at a time when the scarcity

meet¬
Feb. 6 said that

Henry A. Wallace, Vice President in an address at. a mass

ing in the Civic Auditorium, in San Francisco, on
the American people could pay the interest on their gigantic war
debt and still have a post-war standard of living at least 50% higher

during the decade of the Nineteen Thirties.
He was quoted
a special dispatch from
San Francisco to the "New York
Times," by Laurence E. Davies,^
;y:; ..J ;;' \... /:
-' V.''
which continued:
ought to have, and then in buyThe
great
test
of post-war ing and using the things that are
statesmanship, Mr. Wallace as- offered for sale."
: V; :
serted would be "our ability to
Mr. Wallace put health first
these same ideas have repeat¬ of consumer goods available maintain the maximum useful
among "the things we can have,"
edly found expression among to the public is great, then by employment over a long period following it with good housing,
what line of reasoning are we of years and at the same time rural electrification, improved
.many public
commentators
democratic liber¬ agriculture and better schools.
to arrive at the conclusion preserve our
during the past two or three
ties."
He called for more hospistals
;
..v
•
years—often by men who that it would be possible to do
But with "reasonably full em¬ and a "commonsense public health
should
have
known
and so when—as is apparently ployment," he said, we could program,"
asserting
that "we
should know much better.
generally assumed—there is a have a national yearly income of ought to be spending four times as
more
than
much on hospitals and doctors and
$130,000,000,000 and
Yet the absurdity of the great abundance of consumer we could
produce $170,000,000,- nurses as we are now spending,
After 000 of goods and services an¬ and we should be getting at least
claim that mere volume of goods in the markets?
all, is there as much differ¬ nually.
ten times as much good out of the
than

in

thus

.

,

production guarantees even
ence,
considered from the
a
lightening of the debt load,
to say nothing of making it standpoint of economics, as is
more bearable,
is easily de¬ commonly supposed between
upon
monstrable. Indeed, we need expending man-hours
tanks and devoting the same
go no farther than the origin
amount of time, energy and
of this very debt that is the
capital to digging a virtually
cause
of all this discussion.
Most of it has been

incurred,

canal

worthless

During these

national

years, too,

income

is

making
to
year, almost from month to
month.
The President,_ and,
in even more extreme form,
Mr. Willkie, have been plead¬
ing for more and more taxes
from

records

new

—the

year

in

increases

revenue

collections

in

year

neither the President

Willkie

that

ment

volume
or

can

all

of

our

Mr

nor

for

supposes

Yet
a

mo¬

enormous

expenditures will

be met

wholly out of
contrary, both

his opinion most of his

fellow

travelers,

really

ex¬

pect public debt to continue

upward
such

a

ently,

indefinitely under
regime. They, appar¬

are

not much concerned

about

every, other commen¬
tator whose ideas have come

being able to service it
by means of large production.
Indeed, it would appear rea¬

to

sonable to
say

On the

our

attention—confidently

expect the upward trend in
the national debt to continue

through

the

to

end

of

the

out

Of course, those who talk
this

"The

we

in

boom

than

in

income,

or

decade of

the

more

no

Nine¬

the

teen Twenties."

In

this

Mr.'

speech

Wallace

America

"What

Have."

Can

In

feeling it.
during mosTjof

was

"to remember that it>

be

can

carried easily if all of us are able
to

and to

work hard

resources

natural

use

and human skills to the

goods which do

minister

unto

the

eco¬

nomic needs of the

peoplejeeps, military
-planes, and the like: ; True
enough.
No one would be

ployed
raise

will

our

find

market if
of. living

joy

we

standard

40 %,"

he declared.
the things we

"We
have

can

by
en-*

of

millions

of families

of the factory

guns,

manufacture

instruments
sides—that
were

The

trouble

is

that

they

then

proceed with follies of

their

own.

ancient,

ness

men

all

can

busi¬

and

prosper

pro¬

that

we

of

and

death

Affairs Committee of the Finnish

Diet,

is, if

left to

us.

on

all

any choice
But the sub¬

[President

Diet that "Finland is still able to
make

independent decisions but
country's position has again
become serious," the Finnish radio
said in a broadcast reported by
the

United

itors.!

Russian-Finnish

small

"on

of

man

the

It is obvious that the

of rural

extension
to

supply

tic

Soviet

based

N. Y.

The New York Public

gift of

the

ward

000

automobiles

But the idea still flour¬

ishes in the minds of
manyit is so enticing, it makes it
appear

so

the

national

relation

debt and the

to

in¬

public

servicing of pub-




us

event!

harmless to

be

known

to

take

in

any

But what is known

economic

as

"The Ed¬

as

L.

Pub}ic Relations.
According
Hopper, the collection will
comprise works on public rela¬
tions published all over the world.

on

to Mr.

and

The

homes annually, Mr.

announcement

gift

market- for at least 100,-

made

$1,000.

by

stated

Mr.

"Th,e

is

Bernays

Books purchased from it

will be added to similar

material

already in the Library and will

Says Bill To Amend

marked

It

Library

with

special book¬

a

estimated

is

has

now

that

the

of

the

98%

books, pamphlets and periodicals

Reserve Act Would 'Emasculate' The Statute
Senator Glass said in
of the

Senate

a

letter,

on

listed

Feb. 1, to Chairman Wagner

Banking Committee that

Maybank (Dem.,S. C.)

in

public relations biblio¬

bill offered

graphies, but it is known that im¬

by Senator

portant

to amend the Federal Reserve Act prohibi¬

Europe

a

against. payment of interest ori: demand deposits would "emascu¬

late". the

these

statute.

We

quote

an.

matters

by lightly, (or
that they, are
merely academic in their im¬

to

suppose

V.-,V; •'

Least

want

Library
through

'

take port.

attitude, that many

17

Director, the

Bernays Collection on
Public Relations," a presentation
by Edward L. Bernays, Counsel

opportunity to get
good training." ';
The families at work would buy
million

Lenin¬

fund for the purchase of

a

books to

that they can do a good
work, provided they have enough

a

Jan.

on

Franklin F. Hopper,

pile," families which
had "demonstrated during the past

a

submarines
and

Library Public

announced

bottom of the

furnish

Soviet

Kronstadt

Relations Collection

or damnation of the country
depended largely on how effi¬
ciently we" could keep at work

at

of

on

E. L. Bernays Gift To

more

families

wreak

grad have broken into the Baltic.

tion

million

sea

number

erosion."

ten

could

*

connection with the chang¬
ing military situation, there also
are reports here that an unknown

of
im¬
portant than the prevention of soil

"the

Finland

the Finnish capital and
and rail communications.

Associated

Press

dispatch

Latin

lacking, and

from

made to

be

publications

recent

and

a

of

all,

should

;

we

permit ourselves to fie misled
by the reputations of public
men

Senator

Glass

are

special effort

wili

secure

these through

gift.

According to

"Its enact¬

we

shall

reaching effects upon the Federal
Reserve System, both in the num¬
ber of member banks and

perpetuation

of

a

par

in the

clearance

system which has saved the na¬
tion's

industry,

agriculture millions upon
I

am

and
millions

commerce

unalterably op¬

posed to the bill."

soon as

cessation of

send

one

possible

hostilities,

man,

perhaps

two, to Europe and I should like
,

be able

to

to include in his list

of desiderata

all propaganda and

related titles."

'; ;

"Mr.; Bernays is widely known
as

U.

S.

ment could have vicious and far-

who should know better of dollars.

law, or;natural law, than they apparently do.

wrote.

the

after

in

America

Bernays

of

of

on

In

prevention

even

of

its

feed the

that, "the
youth erosion is

Baltic

is

havoc

future farm economy could

serted

the

to

Gulf

the

that

asserted

of

only 53 miles from
Helsinki, and Russian
planes based in Estonia along the

Tallin

deep-freeze
machines to carry
garden stuff and meat over from
the time of seasonal plenty to the
time of scaricity."
Wallace

It

ger.

housewives with "quick-freeze or

Mr.

occupation

States would put Finland in dan¬

the

of

is

making Finland's military
position more precarious daily.

electrification

three-fourths

smashing

Russian advance toward the Bal¬

works."

house

with

frontiers,

Hopper, "As

ago.

mon¬

the occupation of Hangoe possibly
left open to" negotiation.x

the

the

in

Government

States

■

Mr.

the easy

size

in session, will give the
attention.
Risto Ryti told the

now

matter immediate

plate.

years

employ

■

it can logi¬
cally be assumed that the Foreign

it to ourselves,

owe

just

If the report is true,

and that hence the amount of
the national debt is of little

merely

certain

not

is

it

the demand to Finland.

convey

be

Senator Glass

diplo¬

in

what method the Soviets used to

This, he said, would result from

about

workers

current

report,

although

to eat and the

They revive the tion

argument

ject here under discussion is
the volume of production and
come

The

matic circles, bears more than the
usual
earmarks of authenticity,

distance
business where

or

national

us.

2, which

added:

two years

"Farmers,

dispatch

to a United Press
from Stockholm on Feb.

ing

within driving

acreages

always
wanted and thereby create such
prosperity that we can carry the

crush

accord¬

face the consequences,

or

The Russians presumably would

Farm

Washington, on Feb. 1,: which went on to say:
Senator Maybank proposed that<S>the Act be amended to permit the eral Reserve Bank members to
inclined to deny that if we
absorption of exchange or collec¬ pay interest on demand deposits
must go heels over head into
consequence.
This argument tion charges, a provision: Senator through the guise of absorbing
Glass said would authorize "Fed-, exchange charges made by a com¬
debt, it would be much more has been demolished
many
desirable to do so for the pur¬
paratively small number of insti¬
times in the past.
No one
tutions which do not pay their
pose of providing the public
is" as implacable as it is irre¬ checks
perhaps ever did a much bet¬
at par.
with goods with which to sat¬
"The bill is rankly discrimina¬
ter job at it than did Adam vocable
by the politicians.
We can not afford to pass tory and lacking in frankness,"
isfy their natural wants than Smith more than 150
to

out of the war

Mr. Wallace warned that "salva¬

"The goods produced when we
hard
and
are
fully em¬

that she get
within six weeks

demanding

Russia

accept nothing less than the 1940

maximum."
work

§

houses

Coast,

discussed

Drop Out Of War

especially, he said, were out of
date and seriously run down.
He envisaged during the next
ten or 20 years the reallocation

ernized

the

West

second

ourselves."

^

Finland is reported to have re¬
ceived a virtual ultimatum from

way

the form of

tanks,

the

interest

national

our

•

not

than

over

.

Td

Wallace
vided they are all willing to co¬ estimated, while their womenfolk
operate with each other and with would buy nearly two billion dol¬
They would the Government in furnishing the lars worth of clothing and housethe years evi¬ American people the things they hold furnishings.

dently simply borrow in part
of the post-war to
service the debt.
So far as
public debt problem would it
goes it would, appear to be
quickly point out that a very a
more realistic attitude.
large part of our national
production at this time takes
Other Debt Fallacies
in

of

top

'

■

debt easily; or we can
pinch and save and bring on a de¬
se¬
pression. and let the national debt

that they
riously doubt this theory that
by stimulating production it
would be possible to
carry

war.

Producing What?

■

left

more

the

at

1920.

Reported To

Have Asked Finland

"easily
50,0Q0,000 undernourished
sought to "kill the myth" that the people better, provided they were
Some months ago, however,
war debt would stand in the way
well employed."
Professor Hansen, one of the of their realization. The one way
In an appeal for better schools,
most
ardent of the public to treat the war debt, he said, especially in rural areas, he as¬

—and

taxes.

whole lot
had

spenders to make it Seattle he will. speak ori "How
explicit whether they believe America Can Get It." Tonight
that they could make these he said that the 10,000,000 poorest
families "can get it" and "must
enormous
public outlays "pay be given jobs."
their way" or whether they
But
before
listing the things
would expect the public debt which, in his opinion, the country
can
have, the Vice
President
to move upward indefinitely.

peace

history.

our

medical profession as we are now

getting."
: ■h-/
His post-war housing program
lion dollars of goods and serv¬
ices," he went on. "With such an called for the building of "at least
income we can carry the interest a million houses a year until such
on our war debt arid still have a
time as we have completely mod¬

fessional

proposed in them¬
spenders, made it clear be¬
exceeding the total
yond cavil that he ait any rate,
collections of
any

no

charge on all
con¬ debts, private and government,
in 1944 will represent only 7 % of

selves far
of

is

dream, for in 1943
produced more than 190 bil¬

we

the

across

State of Florida, or the
or is being incurred, during a
struction
of
a
waterpower
period when production in
this country is far beyond project which could not even
meet its operating cost?
anything in our history, in¬
There
is
often
an
un¬
deed, far beyond anything
most of us had ever dreamed willingness ♦among the pro¬

of.

"This

.

Russia

publicist No,

author

the

of

"Crystallizing

He

1.

is

"Propaganda,"

Public

Opinion,"

"Speak Up for Democracy," Shd
the

editor

Careers,"

strumental

of
Mr.

in

"An

was

creating the

fession of counsel

tions,

Outline

Bernays

on

of

in¬
pro¬

public rela¬

Volume 159

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4254 /

-

ft; Issued By NA1 As Aid To Transition
Every company in this country, even those not producing war
■'.* goods, will face" new problems in 'the transition from war to peace,
ft according to a series of five guides to post-war preparation being
issued by the National Association of Manufacturers.
In a foreword
<,Uo the first two guide booklets appearing Jan. 31 Norman W; Wilson,
President of Hammermill Paper Co. and Chairman of the .Corpora¬
tion Peacetime Planning Commit;
—
-t"Guide to Post-War Sales Plan¬
j tee of the NAM, which produced
ning," attacks such problems as
./the guides, says: /7ft;7ft. ftft/^ft-ftft
(|
"Rapid technological progress the building ■ or rebuilding of a
and new processes
have made distributor organization, the build¬
many old products and methods ing of a sales story about wholly
/obsolete; marked changes will new products, the hiring " and
ftjJfcake place in the labor force as training of a new sales staff,

take

proposals

to

mentioned in

of managemeeting these problems

j will determine not only the
petitive

positions

of

\ companies, but to
"'the smoothness
from

war

The

*>"

large

a

of

to peace

com¬
individual
transition

our

"

extent

ft_ ;

x,

first

booklet,
entitled
Organization
Corporation Postwar Plan¬

"Guide

to

Internal

reporting
requirement for

"Many companies are.
a

major

a

new

is

salesman

knowl¬

technical

of the product, the means
by which it is produced, and its
method of operation."
edge

of

tance

impor¬

the

emphasized

They

market research

in

an¬

i

for

ft

series of questions
ning," is offered as a summary of
which
they proposed for each
the experiences of more than 350 company interested in fitting its
representative
manufacturing
sales plans to the situation which
swering

companies and suggests

/

■ -

:■

'7 '■

.7'

Further remarks of Mr. Brown

step-bythe war will leave.
' ■
The sub¬
"Beware," 7 said this
subcom¬
committee which produced this
4 guide to internal post-war organi¬ mittee of business men, "of the

New York

"In
my
opinion," Mr. BrowriS^—:—
:—
—>'
declared, "American businessmen to the 3,442 unit Fairlington de¬

speech,

be

40%

are/taking the lead today in sub¬
ordinating special interests to the
public Interest. They are acutely

levy
the

on

ton

conscious of the need to maintain

withholding

to

with total capacity

tive

lowest. wage-earners.
think

don't

"I

without

you

do that

can

to

are

people," he said. "If

get

crease

in

must

substantial

a

consider

in¬

government income,
new

we
of

sources

We haven't been able to

revenue.

do that because of the Treasury's

opposition."
Willkie's

Mr.

contention

a

suggest that union leader¬
ship should rise to this challenge
and

$2,300,000,000 bill on
joint Senate-House con¬

a

committee

ference:
found

some

Taft..

have

always

raised in taxes,"
said, "but the dif¬
ficulty/has been to agree on a
method of getting it. I would be

vacant houses.

or

Willkie

proposes."

>

zation, composed Of Marvin jBoweift
Partner, McKinsey & Co., New
York; Colman O'Shaughnessy, The
Stanley
Works,
New ft Britain,
Conn.; and F. -Sparre, director,
Development Department, E. I,

lure

further

of

Policies

Labor

to

be¬

buy,

to

War workers eligible to
private war housing will,
have preference in the
sale o£

buy

such

buyers

planning
for
any
corporation
management is self-analysis to de¬

be for sale

ftft Mr.

Brown

for

called

end

an

of the

campaign against business
under which busi¬
ness has been painted as a "pub¬
lic enemy by too many political

management

For

reformers and union leaders."

greener.

termine whether

or

not it is oper¬

ating its business as effectively as
it should; and if not, , what steps

^should be taken to put the busi7

ness

it

on

to

basis

a

earn

will

that

maximum

enable

profits and

ft; provide maximum long-term em¬
ployment.
Our study shows a
surprising repetition among lead^
ing executives of such phrases as
'getting our house in'order'."
7;
They found that company post¬

a

most

"In consumer lines espe¬
first sales after the. war
must be of old products, and sales
policies in old cotnpanies should
place major emphasis on the old
standbys."
'
ft--.

division

cially,

•

to

Theft remaining
three,
publi¬
cations of the series, are to'appear

and
the

the

Dispose
Of War Housing

-war preparation is significant and
of future consequence only where

"Guide

titles

Product

Cost

To

of

"Guide

To

Development,:

pur¬

"It

is

worse

to

private ownership

as promptly as
possible in the public interest and

to the Government's financial ad¬

vantage. It is essential, however,
during the war that they continue
to house war workers where the
The corporation

need exists.

Crates more

management
maintained

ready to consider of¬

is

than

more

from

total investment of

a

$71,000,000.
An an¬
this effect came

Cor¬

triotic

poration Postwar Planning," and
"Guide
To
Postwar
Corporate

"What

Financial

which reduces the necessary war-

missioner

production program and which
may well, at a critical moment,
prevent the armed forces -from

Housing Authority.

having the material required for
victory."

of payment are

in

Study

Planning,"

Roosevelt Agrees With Willkie On Need
Increased Taxation

For

gravely disturbing
there are strikes,
each

that

is

Strikes,

Agreement with Wendell Willkie in his advocacy of higher taxes
expressed by President Roosevelt on Feb. 4. Asked for comnient
Mr. Willkie's speech in New York on Feb. 2 in which he said the

was

or

threats

of

strikes,

of

intolerable and indefensible,

were

profiteering and mismanage¬

but

ment

labor

of

by man¬

relations

$10,500,000,000 tax program was "unrealistic" and
and government were
should be replaced by a program of at least $16,000,000,000, Mr. agement
Roosevelt [we quote from a Washington account to the New York equally indefensible^ he asserted.
"Herald Tribune" ! said he didn't ^
"It is not a few labor-leaders
A
have the nerve to ask for $16,- to be specific and tell us where
calling strikes or issuing threats
to
get the additional revenue."
000,000,000.
This
was
indicated
in
Asso¬ for the fun of it..1 The problem
A
The "Herald Tribune" advices
ciated Press advices from Wash¬ arises
continued:
.ftftft:-ftft:
through millions of work¬
Feb.ft 3, which likewise
The President then added that ington
ers, men and women, in the war
stated:
ft. /. ft
'
Mr. Willkie had the same thing in
industries whose
justified com¬
Senator "Vandenberg'-said that
mind as he did, however, in re¬
it also was simple to say that the plaints at times have received no
gard to mortgaging the next gen¬
Administration's

'

nouncement ;.to

the

of

considered

Corporation

Public

Federal

The advices

if price and

war

to

war

for

the

present

genera¬

tion's

debts, as Mr. Willkie had
put it. The President was refer¬
ring to a position he was taking
with regard to financing the war
out of current national
income,
and

siphoning

dollars

at

the

inflationary

off
same

time.

This

Mr. Willkie carried still
farther in his address.
.
/
The Willkie speech provoked a
challenge from Senator Arthur H.
Vandenberg (R., Mich.), who told
the Senate on Feb. 3 that "our
tax consultants up and down the
program

country

who

give

advice




ought

tax structure should be

simplified, prompt ft or adequate considera¬
as
proposed in a resolution of¬ tion." 1
fered by Senator Alexander WiMost- strikes,
Mr. Frey con¬
ley (R., Wis.).
On the same day (Feb. 3) Sen¬ tended, resulted from unnecessary
Robert A, Taft,; of Ohio, a
Republican member of the Senate
Finance
Committee, told a re¬
porter that he, for one, would

ator

like

have

to

detail

he

how

revenues

Willkie state in

thought additional

could be extracted from

individuals
Further

Mr.

and

business

Washington
Walter

F.

almost

in

condition
said

He

policy
that

George

(D.,

of

our

there

for

more

agencies
and

on

"an

impossible: administrative

than

were

Government."

was

labor's

firms.

Associated

Press advices Feb. 3 said:

Senator

irritation which he blamed

25

no

national

guidance

National

issuing regulations

conditions

■ft

'i

,

corporation

'

7ft

ft

"ft;

•

/ /

organized

was

totaling

and loans

the

than $60,-

more

the Reconstruction
Corporation, the projects

from

000,000

All

built.

were

purchase

to

With this capital,

capital stock.

completed,

are

units

963

except

Fairlington

at

which will be finished in the next
three

four months.

or

/ft.

Housing

there is

war

out

ment

of

a

ties

This

emergency

that is eomparabie to
private endeavor in the character
of its properties and management
in contrast to other public hous¬
enterprise

ing.

activi-'

Federal housing

all

Housing-

National

the

in

Agency in 1942, the capital stock
of the
from

corporation was transferred
Federal Loan

the

John

to

B.

Adminis¬

Blandford,• Jr.,"

and

Admin- •

DHC's functions, powers

istrator.

Agency

need."

war

dated

consoli¬

President

the

National Housing Agency

ac¬

Commissioner Emmerich
said, is made to take the Govern¬

duties, including those of its

officers
were

and

istered

by

directors,

to the

to

Agency

Housing

of

board

transferred

National

be

admin¬

Federal

the

Public

Housing Commissioner under the

direction of the

supervision and
Administrator,

ft.,

From the advices from the Na¬

tional/Housing

Agency

we

also

"In

addition

Emmerich,

to

Commissioner

directors of the

cor¬

"Incorporated in 1940 to build poration
include
Administrator
urgently .needed defense housing Blandford, Abner H. Ferguson,
as
a
supplement to that being
Commissioner
of
the
Federal
built privately, the Corporation
has projects available for sale in Housing Administration; John H.
13
States
and the Washington, Fahey,
Commissioner,
Federal
D. C,/ area containing a total of Home Loan Bank Administration;
2,811 houses, 5,617 apartments and
James L. Dougherty, representa¬
accommodations for 2,624 single
tive
of RFC;
Leon Keyserling,
men and women.
They extend from Jacksonville,

Fla.,

to

across

Wash.
12

employment.

ftft'.

•

in

policies of

move,

and

governmental

decisions affecting

localities."

trator

,,

eration

the respective

during

workers

cordance with housing

where

will

terms

satisfactory to the
and there is agree¬

ment to confine occupancy

the

the

Herbert

state that "offers to purchase

the

of

Also, it has made
payments in lieu of taxes equal
to full taxes on the properties in

Emmerich, Presi¬
ft; "When
dent of the corporation and Com¬

be

op¬

including inte¬

amortization

and

on

has

meet

financial loans.

Finance

to

representing

that

erating expenses,
rest

It

company.

rents

op-'

private

a

23, 1940, by direction of
the President, who allocated $10,-;
000,000 from his Emergency Fund
to Jesse H. Jones, as Federal Loan,

fers to purchase any of 25 projects

will, make men brave, pa¬
or
united," he asserted.

never

less like

or

Administrator,

was

rent -levels
character of

corporation's properties," Mr.
said,
"the
directors
making them available for

that it

folly to look

than

the

permanent

the Federal
dispose of war
housing, the Defense Homes Cor¬
poration made known on Jan. 26
Government

of Mr. Frey as

others."

to

October

In the first move by

which gave other remarks
follows:
.

Feb. 6,

_

the

and

viewpoint

by

them, they

Emmerich

"The

Gov. Acts To

legislation ifo improve this situ¬
ation, for legislation and its ad¬
ministration
never
have,
and

of

other in

spirit of trust and good will."

rent

"Considering

ft It is added

pose," according to United Press
advices
from
Washington,
on

under

on

kywed to deal with each

seriously by "an al¬

been: injured

study.

Postwar

7 port of the chief executive."
The
second
booklet,
entitled

The successful

sticks to his last, and

impossible
administrative
the successful company does not condition in Government;" he like¬
drop its old lines to switch to new wise said that the home front was
ones
without extremely cautious
"drifting: toward
a /; dangerous

;.ft

it has "the active interest and sup-

field.

new

shoemaker

application

favor

the

have

most

in the

In the absence o£

and

,

ft

en¬

to rent.

will

which

pastures

himself

for
wants

This is one of the By Frey
.ft Mr. Brown declared .that the
frequent
admonitions
of [; ft John P. Frey, President of the task of
maintaining production
manufacturers who observed the Metal Trades Department of the
i
and
employment ' after the war
scramble for new markets follow¬ American
Federation of Labor, will be
simplified if the "war¬
ing the last war.
There is al¬ speaking on the weekly "Labor
ring camps" psychology is ended.
ways a tendency to believe that
For Victory" program of NBC, on
duPont, de Nemours & Co., Inc.,
"We shall remove a great haz¬
a
new
line will be easier to sell Feb.
6, called Tor a central Fed¬ ard from
/ Wilmington, Del., concluded: /ftft
this country's post-war
than the old one.
Too often the eral
agency to administer war¬
^ft/ftRealistidZmdnageh^
future," he asserted, "if manage¬
ing increasingly to recognize that belief comes from lack of famili¬ time/labor policies, and said the ment and the workers are al¬
the primary objective of post-wan arity with competitive conditions morale of industrial workers had
look

un¬

occupants
not
they may continue

public interest, such
long been applied to
business.
In
the public
interest
they should now be. accepted for
labor organizations."

"In

rules

Wartime

Asked

he

;

Should

wish

workers

,

Administer

decide
not

tirety.

war

ft.

Centra! Federal Agency
To

unions

long.

Mr.

what

know

to

7

pants first opportunity to buy,
a
project is sold in its

to

Taft

interested

ft/ft/:

less

more

Senator

the

worker

agreed,
support with Senator

000,000

projects,

selling individual houses
corporation will give occu¬

whether

has

thought that
ought to be about $5,000,-

there

communities.

accept regula¬
tion. Let them publish financial
reports. Let them be opposed to
monopolistic union practices. Let
them call strikes only by secret
ballot.
Let
them
permit
the

'

"I

hall

residence

"In

likewise.

"Let the

11

step program of action.

do

new

which

"Four

"I

,

that

insufficient taxes would be raised

by

velopment in Fairfax and Arling¬
counties, Virginia.

for 2,624 single,
employment.
They are opposed persons, and three projects total¬
to monoply,
They accept reason¬ ing 4.910 apartments comprise the
able government regulation and
properties in the Washington, D*
collective bargaining. They wage C.
area, while all but four pro¬
no campaign against unions. They
jects in other States are composed
go
to great lengths to explain of
individual
family dwellings./
their operations to their stock¬ All were
designed and built to be
holders, employees and the pub¬ permanent assets to their respec-

destroying the morale of

the American
we

given in the "World-Telegram"

were

of Jan. 31, as follows:

lic.

have

would

a

a

a

the

structure,

dent, Hercules Powder Co., Inc.,
Wilmington, Del., concluded:
that

,,

achieved under the present

were

..

in

-

ft Senator George told the Senate
that if Mr. Willkie's tax goal,

men
are
mustered
out
of
the ft The subcommittee which pro¬
tarmed services and many women, duced this guide to post-war sales
aged, and young workers leave planning, composed of R. P. Healy,
industrial jobs; new competitors American Chain Division, Ameri¬
will appear as new and expanded can Chain & Cable Co., York, Pa.;
companies which have been pro¬ Joseph
O.
Allina,
Secretary,
ducing for war seek outlets for Thonet Brothers, Inc., New York;
peacetime products.
These and T. L. Briggs, Business Counsellor,
•kmany other factors will make it New York; William H. lngersoll,
impossible for any industrial com- Ingersoll Plastic Co., New York;
«-pany to escape post-war adjust- and P. W. Meyeringh, Vice-Presi¬

V ment

/ John A. Brown, President of the Socony-Vacuum Oil Co., in a
special statement for the New York "World-Telegram" on business
and union leadership, challenged labor leaders, on Jan. 31, to match
the leadership of management "in subordinating special interest."

on

structure.:' ■:' /;/ Z/7' /

^

..

Challenged To Match Leadership
Of Management On Public Policy

again until
pending
simplify the
tax

up; tax matters
the House acts

after

---

'
ft// "The effectiveness

Labor Leaders

fthe Committee would be
"happy to hear him," but added
that the group is not/likely to
Oppear

7'ft

ment problems.

said

that if-Mr. Willkie. would like to

•

ft

A.

Chairman,

Committee

Ga.),

Five Guides To Post-War Preparation

623

Portsmouth, N.1 H.,

the country to

They range

houses

in

Falls

and

Bremerton,

in

size from

Church,

General Counsel NHA; George

Williams,

Executive

B.

Vice-Presi¬

dent, DHG; and David L. Krooth,
General

Counsel, Federal

Va.,' Housing Authority."

Public

THE COMMERCIAL & FINANCIAL CHRONICLE

624

farmers

Common Man Comes First:
the

business

to

want

post-war
those

the

serve

probably

period

are

have

,

rather

who

the

in

world

recently

graduated from the ranks of the
small business men into handling

affairs

large
Mr.

the

in

Wallace

said:

"Because of his unusual capac¬

.

has made
large sums of money during the
war, but has paid nearly all of
his profits to the Government. He

ity, this kind of

will

large

plant

man

of

out

come

the

with

war

wants

He

facilities.

to

know how to reconvert as fast

as

possible.

'..J'.,.!}!'

hope the post-war slump will
not
be
so
big when it finally
comes as to make it possible for
the large static corporations with
huge reserves to take over the
establishments which these

getic

men

with

have built

ener-

the

skillfully

so

cooperation
of loyal
Big business men must not

to make it easy

dren.

post-war

as

in

game

out the

a

which

way

will shut

who have made such

men

a magnificent contribution to the
productive power of America dur-

ing the
The

dress is
On

"

war

text

I which all of us are subject. When
P°st-war contracts are canceled

;

of

Wallace's ad-

Mr.

given in full herewith:

this

'

trip to the West Coast
talk about America

to

propose

tomorrow.

Today

I

shall

speak

about what America wants. Later
at San Francisco and Seattle

shall

discuss

what

America

have and how America

Unions Have "Come of Age" ;

But let

has come of
age..
It has taken its place as a
responsible partner of manage-,
ment in the operation of industry and trade. It has accepted re-

point out

me

so'

in

with

White

the

House.

Then

government out of; business

and with Wall Street

running the

country again, we can have what
we

want—free

the

free

. Yes,
old-fash¬
ioned America is what we really

want."

enterprise..

of

enterprise

'/;-

■

v

Organized flabor

We want many, different things
and some of these are in conflict
with others.

American labor wants work, not
a
/
® Wagner Act can
never be a substitute for jobs, but
combined with jobs it is admirable.

I

can

get it.

can

-

big business /puts its desires in Because of his unusual capacity,
Workers want better insurance mild-sounding phrases somewhat this kind of man has made large
against sickness/ unemployment as follows: "We must have an sums of money
during the war,
and old age. They want the Wag- economically sound
government but has paid nearly all of his
ner Act, not as a substitute for
and a balanced budget.
Govern
profits to the Government.
He
full employment, but as an insur- ment
spending must be cut down. will come out. of the war with
ance
against the accidents to We must
get rid of that 'so and large plant facilities.; He wants

for them

to write the rules of the

ment

on

Freebooters"

for

"Freedom

-

By free, enterprise this type of

big

business

freedom for

means

freebooters.

enterprise
in war for maintain-" this type of big business means
ing an increase in production.
It the privilege of charging monop¬
have is immense.
Only a few has the right to ask for fair and oly prices wiithout; interference by
years
ago,
when the President honest treatment from the public, the Government; the privilege of
right

at

total

the

start

what

of

said

we

he

a

that

the

fifty

year,

can

thousand
people
visionary,

As

,

responsible partner, labor
opportunity to make

a

wants

some

an

thought he was being
creative contributions to industry
Today we know that the produc-J and to benefit therefrom. During
tion

of

planes

hundred

a

a year

is

thousand

the

war

the war,

as

we

and

had

before

know that is no

you

dream.

There

they

much higher than most

are

people
:But

even;

realize.

yet

have

cannot

we

limits,; but

are

these

all

things unless we use good sense
and good management.
If we try
to

grab too much all

That is why I want

lapse.

wants,

us
our

desires

into

us

then

to

fit

kets
A

.welfare.
The

made

to

and

most

a

worker but also

capitalist,
The

trader

a

farmer is

and

ex¬

mar¬

beyond his control.
farmer's

first want is the
cent

markets,

assurance

of de¬

low freight rates
; marketing
costs.

important

and

need has to do with the desire of

The

plain folks who have to work for
a living
in the factories and the

rates, a chance to buy farm ma¬
chinery
and
fertilizer
at
low
prices. As a purchaser, the farm¬
er knows
that he has long been
victimized
by monopolies both
when he sells and when he buys,
Farmers want good roads, good

stores,
the

the

in

schoolhouses

Government

than

50

million

with

their

have

just

life—the

job.
ance

any

offices.

of

wives
one

these

More

people

children

and

basic

assurance

and

interest in
a
steady

of

They would like the assuran
annual salary or, at
rate, the guarantee of two
a

year,

„

,

than

y,

c0urse

decent

la*501
wages

at low cost.

.

more

appreciated, to feel that it is
contributing toward making this
a better place in which to

world

low

electrification

Farmers love the soil

are

deeply

as

concerned

problem of full employ¬
ment as labor itself.
They are
anxious to see such modification
in taxation laws as will

maximum

incentive

on

place the
that type

which will
give full employment.
Some of
these larger business men have
business

marvelous

activity

new

inventions

which

they would like to put into vol¬
ume
production at the earliest
possible moment.
/ :.v-/:

interest

Such

men

interested

are

oftentimes

more

in

increasing produc¬
tion, and thereby serving hu¬
manity, than in making money
for money's sake, but they know
that even from the standpoint of
serving humanity it is necessary
to
make
a
reasonable profit if
this
of

private

ours

is

to

enterprise
survive.

economy

Therefore

they want the assurance of/large
so as to leave it to their children
and expanding markets.
hotter than they found it.
Above

farmers

The small business man

want
see

to

the

produce

fruits

of

their labor raise the living stand£ mankind

It wants to

be

rural

abundantly, to

,

wants

and

want

and want to be able to handle it

Pjj

Aims of-Labor Pictured
„

farmers

schools

of

thousand hours of work

reasonable

them

with the

of

first

desire, there¬
fore, is to remove the extraordi¬
nary hazards of his business.
His

■,:/;/: ■:<>",■/

first

wants

more

posed both to weather

practical total, and finally
how to get that total.
This is the
practical way of planning, cre¬
ating and enjoying the common

be

only

manager, a
and a debtor.

a

can

has

a

how

about

farmer

self is not

about what each of

and

have submitted ideas for

than the worker because he him¬

is another boom and another col¬

think clearly

hundreds of thousands of

The

shall get

we

the

putting competitors out of busi¬
by unfair methods of com¬

ness

petition; the privilege of buying
up patents and: keeping them out
of use;
the5: privilege of setting
up
Pittsburgh plus price-fixing
schemes; the privilege of unload¬
ing stocks and bonds on the pub¬
lic
through- insiders who know
their way
in and out, up and
down, backwards and sideways.

increasing
efficiency,
enlarging
output, saving time and costs,
and improving the quality of the
product, ' Labor during the war
has
enjoyed
cooperating
with
management in doing a real pro¬
Fortunately, not all big business
duction job, and we must never
men
ask for these privileges or
again let such a rich source of define free
enterprise in the way
national wealth go untapped.
I have just mentioned.
Some of

living after

ever

war

[workers

war,

hard reality.
we can have twice
a

So I tell you
much for civilian

as

By. free

sum responsibility'*

Americans

wanted

planes

war

Status

Business Man's

Small

war

ards

as

much

j

Trends Among Farmers
In

recent

farmers

as

enterprise
have

just

means

ent

i

is

in free enter¬

the big business man, but
something quite differ¬
in his use of the word.
Free

prise
he

interested

to

the
the

little

business

opportunity to
more and more interested
compete without fear of monopoly
The
workers
of
the
United in getting legislation which would controls of
any kind.
The smail
States want assurance that they give
them
bargaining
power manufacturer wants free access to
can
have jobs when the seven equivalent to
markets
that
and the assurance that
enjoyed by
million service men and the ten labor and industry,
Thousands of he will not suddenly iind nimseix
live.-




It is

Far. West wants.

the

what

prodigiously .rich in natural re- v
which promise

sources

than for

gion

greater

a

for this

development

future

;

re-

other in the

any

v:,;

'■ To accomplish this development '
expeditiously the West will re- y
country.

m

1

addi-^

capital,

investment

quire

transportation facilities and
workers. w It will - require

tional
more

<

non-discriminatory

and

lower

freight rates and access to tech-y
nologies.
It will need develop¬
ment of its hydro-power resources

and'great increases in irrigation-'
to take care of the food require-'
of a growing West and a*;
wealthier country generally.
The;
merits

West looks forward to a future in »

which the trade of the Pacific will;

the

of

that

rival

Atlantic.

The

West wants and is entitled to more

influence in

Washington, D. C.

Looking to the broader interests1

/

nation,-it is apparent thatU'

of the

what is wanted is a balanced de¬

velopment of all the economic re¬
sources of all regions, that whatever

raises the economic level of

region creates
regions.

one

new

markets

for other

/
democ¬
the most urgent want is to

racy,

be

of

citizens

As

a

great

accurately and intelligently in-',,

formed

the

all

on

which

issues

-

have such control of Congress
the Executive branch of Govern-

I

?

everything else possibilities for
To its own conscience this self¬ small business men into handling
and the rea* education of their chilish, narrow-visioned branch of large; affairs in the war effort.

labor.

•

hostile financial

/,;•••/':f; ■.

■

"I

■

;•'/...

,

/;

Jj!

:

■

crushed by some
power.

.

v

His success has often depended
largely upon his fine relationship
with
labor, i
Appreciating / the
loyalty of labor, he wants to give
his workers jobs in the post-war
period.
//;// • \
3j8

skilled
..

.

effort,"

war

"•

The small business man in his
workers, who by power to hold up farm prices
way is
just as much a. typical
their supreme efforts are saving after the war.
/ v.
American as
the
small farmer.
us
Some / false farm leaders - used
during this mighty conflict, :
Some
of his relatives
may
be
find it necessary to get back into the farm lobbying power- to
help
business against. labor, just like workers, some may be farmers or
peacetime work.
/
one
of them may- actually be a
They want a plan that will solve some false union leaders use their
big business man.
.The small
the problem when there are more
lobbying power to help business
business man is the source' of a
workers than jobs.
Nowhere is against; the consumer.
But the
large part of the initiative of the
this situation so acute as right best
farm
leaders
realize
that
here on the West Coast.
When farm prices can be maintained in United States. The small business
man
is humble, ambitious, con¬
men begin to
hunt for jobs, the the post-war period only if labor
fused and uncertain.
He is not
bargaining power of labor begins is fully employed at high wages,
to weaken and union funds begin just " like the best labor leaders very happy because, in war and
in peace, the rate of economic
to melt away.
Workers every¬ realize that; good wages and full
casualties among small businesses
where know this and therefore employment cannot be
long en¬
is so high.;
'/
are beginning
to think in larger joyed unless the farmers are pros¬
Moreover, the small business
terms than merely bargaining for perous.
All
farmers, - like all
man
is not sure that the situa¬
higher wages/ shorter hours and workers, want stability and a
tion will be any better for him
better working conditions.
They rising standard of living.
when peace comes than it is right
want to have a part in making
Some, but not all, big business now. / The small1 business man
those decisions, which will deter¬
men
want that type
of control wants a fair i chance/ to compete
mine the future prosperity of the
which will produce big profits.
in a growing
market with fair
nation.
They want to influence They want to
put Wall Street access to raw materials, ;capital
government and industry to bring first and the nation second. Want
and technical research.
These de¬
about full use of manpower, full
to put property; rights first and
sires are not
unreasonable but
use
of resources and full use of
human rights second.
They will they Will require some protection
technological know-how.
•
fight
with
unrelenting
hatred by the Government/*
' /•
With the United States producr
through press, radio, demagogue
Some of the business men who
#in peace as it has been pro- and lobbyist / every national and most want to serve the world in
during in war, the workers know State
government ;which
puts the post-war period are probably
that they can have opportunities human
rights
aboveproperty those who have rather recently
for leisure and culture, and above rights. ;
•*.
*;
. graduated
from the ranks of the

million

most

who

men

become

lobbyists:

Having
learned
the
Washington lobby
game, they intend to use Federal

(Continued from first, page)
of

have

Washington

Thursday, February 10, 1944

become

years

man

means

confront
be

There must cease to

us.

in public affairs, ex- *

secrecy

cept where military necessity re¬

democracy public of¬
people.
/ ;
The greatest responsibility, how¬
ever, rests on the press and the
other agencies of public information, a responsibility which the
workers who gather and prepare
to know how to reconvert as fast
the news will enjoy
discharging *
as possible.
\
if they are given the opportunity. ,/
His success has often depended
The press, the radio and the other. '
largely upon his fine relationship
agencies of public information
with labor.
Appreciating the loy¬
must take the lead and carry the
>
alty of labor, he wants to give
his workers jobs in the post-war major responsibility for our great¬
est assignment in mass education $.
period, not so much from the
—the education of our people for
j
standpoint of * making money as
political and economic democracy. 4{
from
the /standpoint
of
doing
Demands for Education
*
things both for his workers and
for the country. ,/ Such .men are in
>
As citizens of a democracy, we
some
ways the hope of America must all be
vitally concerned with:
and of the world.
~'''
the
adequacy of the education
available.
Many adults want op-'
Possibilities of Slump
•
/
portunities to complete their edu¬
I hope the post-war slump will
cations, to prepare for better jobs,
not
be
so
big when it finally or to
develop new interests.
The
comes as to make
it possible for
training of our citizen army has
the large static corporations with
demonstrated the potentialities of
huge reserves to take over the adult education
In

quires.

a

ficials must trust the

,

.

establishments

which

these

to millions.

When

*

ener¬

demobilized, they will demand
comparable opportunities in peace.
with the cooperation of loyal la¬
/ The
wants
of the
returning
bor. / Big business men must not
service
men
mean
more
to
us
have such control of Congress and
right now than the wants of any¬
getic

the

have built

men

Executive

skillfully

so

branch of

Govern¬

ment

for them

game

post-war
which will shut

as to make it easy
to write the rules of the

in

out the

a

way

who have made such

men

a

magnificent contribution to the
productive power of America dur¬
ing

the

We

war.

furnish the

need

jobs which

them

are

so

to

im¬

portant both to labor and to agri¬
culture.

Henry Kaiser, who sees
this problem clearly, has recent¬
ly suggested an interesting way
to finance medium-sized business

firms.

/:
.;."'// ; ■"■
big three—big business, big
big agriculture—in the
struggle to grab Federal power

The

labor and

for monopolistic purposes are cer¬
tain to come into serious conflict
unless

:

they

recognize

rior

claims

of

fare

of

common

the

recognition

of

the

the

the

supe¬

general

wel¬

man.

Such

general

wel¬

else.
In
this year 1944 a
grateful nation is determined not
one

let

to

the

service

^

down.

men

These

men
are
entitled to
job
priorities and mustering out pay.
They will want the same things
as

*
; /

workers and farmers, but they

will want

more.

,

During the

f
•'

war

millions of them have learned to
walk with

physical

death, pain and

hardship.

severe

They

<

have

learned to love their

country with
They forgot
about money.
Big profits, higher
wages and higher prices for farm
products meant nothing to them.
a

fierce

'

patriotism.

Therefore

they

learned

hate /■'■

to

warfare.
;:
return to private life

pressure group

They

may

and become

a

pressure

the general welfare.

group

^

for

Their disgust

^

with

pressure
group
politics
wrongly channeled could lead to a

new kind of
Fascism, but rightly
genuine, must be directed it
may result in a true
more
than. polite
mouthing; of
general welfare democracy for the
high-sounding phrases.
/ :
first time in history. These
young
Each of the big three has un¬
men will run the
country fifteen '
precedented

fare

must

be

power

ent

time.

at

the

pres¬

Each is faced with

se¬

rious post-war worries.
Each will
be tempted to try to profit at the

of

two

when

the post-war boom breaks.

Each

expense

can

save

the

other

itself only if it learns to

work with the other two and with

Government in terms of the gen¬
welfare.
To work together

eral

without

slipping into

an

Ameri¬

can
Fascism will be the central
problem of post-war democracy.

years

As
and

us

consider

for

a

moment

hence.

citizens,
honest

>

,

/

v

:

we want competent

government

all

*

:
t

the

way from the local community to
Washington.
We want a govern¬
ment that uses its powers

openly,
intelligently and courageously to
equality of opportunity,
freedom
of
enterprise and the
preserve

maximum of

initiative for all the

people.

/

.

Summary of Goals
We

What the Far West Wants

Let

.

■

want

a
government which
will recognize those things which
it can best provide in the interests

'<

Volume

159

Number 4254

THE COMMERCIAL & FINANCIAL CHRONICLE

s

of

all—security of persons * and
property, freedom.' of, religion, of

what he

speech and of thought, education,
public health, social insurance,

full will cause him to throw over

i$ entitled to.

to utilize

ure

Any fail¬

resources

our

Minister

to the

As consumers, our wants merge We
who
love
democracy must
; the : general; w elf are.
Our, make it politically and economi¬

•

into

dominant want is for. an efficient-' cally a capable servant of the irre¬
ly functioning economy—full em¬ sistible instincts of man and na¬
ployment of labor,: .capital and. ture toward full use.
1

technologies,

; a balanced deyelopr

ment

regions,

of

all

All of

the preser¬ appreciated. We want to feel that
vation of genuine free
enterprise the world would be a poorer place
and; competition to * assure prog-: if we died. We want to
enjoy the
ress and a
rising standard of liv¬ world, contribute to the world
ing, the; avoidance - of business and be
appreciated by the world,
ups and downs, and no exploita-, each in his own little
way.
tion of labor, capital or
agricuK; I The
bitterness of the depression
lure.'
'
was
that so many .millionswere
We all want jobs, health,
secur,-, cut
off by unemployment,
That
ity, freedom, business opportuni¬
is the bitterness we do not want
ty, good education and peace. We
to
see
again, when the war is
can sum this all
up in one word
over
and the boys come home.
and say that what: America wants
We want reasonably full employ¬
is pursuit of happiness.
Each in¬
ment so that every American can
dividual American
.

before he dies

wants

to

him.

all; that

express

is

in

He wants to work hard.; He
to play hard.
He wants

Wants

the pleasure of

a

education

his

wants

for.

to

travel

to

rest and

of

good home with
children.

and

on

He

occasion

The

•

enjoy the finer things

common

earning

to

thinks he

man

the

himself

with.

we

is

opportunityof
these things.
He wants

l|||.I/., ;/.'/ ■'

i '.We have the science and

technical

skills

to

direct

our

We have innumerable de¬

for

need

goods and services that
able

are

is

to

supply.'All

good

harmony, less grabbing for

all the physical resources of the
nation transformed
by human en¬

selves, and

we

and

management

our¬

cooperation; for

more

Legitimate
knowledge into the general welfare.
the good things of
life, the sum self-interest, can be realized in no
ergy and

total

of

human

which

happiness.

spells

He

.

and

peace

knows

he

other way.
for

have

such peace and happiness
if the means of
earning peace and
happiness are denied to any man
the basis of

on

race or

creed,

common

man

victory in

resounding

war

peace

we

By work¬

get dared

to

get ; results

can

hope.

good

common

•

...

be¬
have

Assures Treatment of

Equity To Those
Investing Capital Therein

Dr. Frank P.

by

the

Roosevelt.

President

and

Wallace and other Cabinet mem¬
bers participated in the reception,
On Jan, 20 he

/House

*—

was

received in the

and

we

■

■

■

I Vice-President ileges

■■■

can

assure

proachable

■■■■

-

■

Or unreasonable

■

■/

profits, but

treatment of irre¬

equity

to

those

who

would

bring their. capital and
intiative
into
association
with

Senate, an address to
featuring his visit there. ours, and with our
labor, on an
Speaking in New York on Jan. equal basis for the
development
25
at a
luncheon given
in his of the country."
/;.
honor by Thomas J. Watson, Pres¬
7 In discussing the post-war
pe¬
ident
of
International
Business riod, he said:
/■/;'/;/;"//|/' I':
Machines
"It is by
Corp.,
at
the
Union
establishing practical
Club, President Medina declared and fair methods of economic
co¬
the latter

.

that better

distribution of wealth

and

operation

that

.

..

.

we

can

a margin of economic secur¬
ity for all members of the com¬

strengthen continental

munity

between

vate

without

initiative

eliminating
will

pri¬

characterize

the post-war period. He extolled
the possibilities of development, in
Venezuela and assured "treatment
of irreproachable equity" to those
who invest their capital and initi¬

thus
of

maintaining

sound balance

the

different economies
American countries.
The

the

present

and

offer

the post-war
periods

extraordinary opportunities
this complementary action,
but

for
to

a

best

solidarity,

secure

this

high level

of

operation strict principles of

co¬

mu¬

ative in that development.
He tual equality,
desirability and re¬
spoke in Spanish. In part he said: spect for
sovereign rights and
"We are, at the present time, national
interests are necessary,"
the first oil exporting country of
President Medina was also the
the world, and our reserves of
guest of the Pan American
Society
this vital product assure a great, and the
Venezuelan Chamber of
development of its output.
We Commerce of the United
States at
possess some of the richest and a dinner held at
the Waldorf-As¬
largest iron ore deposits. We have toria Hotel on Jan, 26.
enormous

energy;
wide
lend themselves
and

of

hydraulic
territories which

resources

Frederick

E.

Hasler, President

of the
Society, presided
raising dresses were made by
agriculture; and exceptionally John F. O'Hara; Thos. W.

to

'favorable conditions for the fish¬

ing industry, as well as the mining
of
gold, diamonds and a great
Variety of ores,
,

"We

are

a

and

not offer to

ad¬

nation

which

has

President

of

capital.

We

could

anybody special priv¬




the

Bishop

Palmer,

Venezuelan

Chamber, and President Medina.
Other guests at the
dinner, which
preceded by a reception, were
General
Medina's offWal pa^tv
and officials of the
Venezuelan
Embassy and State Department at
was

barely * initiated the development
to
be expected from
our
large
resources, and to this end we wel¬ Washington and
come
the cooperation of foreign consulate here.
technique

and

cattle

President
party

the

House of Representatives

military and naval aides, respec¬
tively; Stanley Woodward, Assist¬

official
Rodolfo
Rojas,

meet

the challenge of those who
that the Government has no
constitutional
right to
demand
equal treatment for all citizens."
say

ant Chief of the

of

the

17

Jan,

on

ward

by

Representative Thomas E.
Scanlon, Democrat, of Pennsyl¬
vania, and Representative William

Protocol Division

State

the

establishment

country of
bill of

in

this

social and economic

a

rights.

Frank Crosswaith, Chairman of
Department; Col.
A. Dawson, Democrat, of Illinois. the
Negro Labor Committee, de¬
Campanoli, repre¬
It will be introduced within a few
sentative of the War
clared that "unless this bill is
Department,
and Hamilton
days in the Senate under bipart¬ passed and enforced we shall
Osborne, State De¬
find

Nicholas H./E.

partment.

isan

7.'/;/

77

sponsorship, it was announced
yesterday's conference.
In the

at

"Times" it
tion

The

board

of

directors

of

of
Commerce
United States announced
26
the
resignation
of

the

of

the

on

Jan.

than

has

member

a

Governing

of

the

Board.

succeeded

or-

consult¬

board

of

of

Mr.

the

will

be

Cities

director of business
announced

Alton
In

regret, at, the- resignation

be

relieved

bilities
tion's

in

of

connection

more

Board

of

Chamber
Mr.

than

with

25

of

the

Thorpe

Lawrence

of

the

three

tains

gradual

or

the

funds

deep

ap¬

tainable

everyday

and

express

aspirations

business,

the

.

of

'Nation's

Business'^ today enjoys great in¬
fluence.
The best wishes of the
board go with Mr. Thorpe in his
field

new

of

endeavor."

is ;

of

the

3

con¬

for

the

moratorium

pay¬

least 2% upon the
principal of the mortgage.
"(2) Require the reorganization

the

Because of. his

of

at

refinancing of mortgages where
for

that

purpose

ob¬

are

at reasonable rates.

"(3)

Require
the

the

"

'

•

Pointing

that

out

real

estate

board, said in part:

effective

vehicle

for

ing popular sentiment to
the

free

America.

a

arous¬

preserve

enterprise
Its

system
in
effectiveness
has

been

primarily because of Merle
Thorpe's understanding of busi¬
ness, its relation to government;
and his unusual ability to present
the

has

to the public.

case

presented

the

>

.

cause

,

of

in

business men, big and little, with
the

sturdiest

through
has

his

conviction,

work

contributed

character

and

the

Chamber

greatly

welfare

and

of

to

the

Amer¬

Before

atorium

tion's

Business"

Mr.

Thorpe

liquidated

a

the

and

in

well

7

mortgages, as
property
secured

thereby, are important forms of
investment,
and
enjoy a high>
standing in the investment field.
The time has arrived when

lation

V7l/\7(//

law.

that

estates

cannot

; =:

I',77;

Result Of

Treasury
Offering

Bill

be

The

Secretary of the Treasury

announced

ders

for

abouts,

Feb. 8 that the ten-

on

$1,000,000,000, or there¬
of 91-day Treasury billsJ

to be dated Feb, 10 and to mature

May 11, 1944, which
Feb.

on

4,

the

journalism

in

first

the

school

United

of

States.

He holds degrees from Stanford
University,
the
University
of
Washington, ■; Park .College, the
University of Pittsburgh and the
National University Law School.
He

is

the

author

of

several

books,

was contributing Editor of
"Collier's," and his work has ap¬
peared in the "Saturday Evening

Post,"

"Liberty," and other

tional publications.

of

as

the

tators.

a

speaker,

earliest
'

na¬

He is known
and

radio

was

one

commen¬

the

at

Feb. 7.

on

details of this issue

follows:

taught
at
the
Universities
of
Washington, California- and Kan¬
sas, and it credited with having

offered

were

opened

were

Federal Reserve banks

The

established

legis¬

aim to end the mor¬

must

are

mortgages

is

in¬

estate

the

as

normal

mortgages

of

funds

generally are frozen, to
this extent,
Under normal con¬

-

Experience shows
and real
estate
properties subject to a morator¬
ium are not liquid assets.
The
that

also

befommg FdHor. ^ "No¬

law,

vestors

good

"Activity in the real estate field
is seriously hampered by the mor¬

He
the

moratorium

on Certiorari
Proceedings of
Chairman, the report which was

important investments, the report
continues:

result

'Nation's Business' has been

mortgage

to

owners

premises

Johnston, President of the
Chamber, in commenting on the

most

the

atorium laws."

Eric

action of the

Knight Chalmers
I/-III M

will preside.

•

maintain

times

ideals

ILGWU, and the Rev,
LaFarge, editor of America,

John

The Rev. Allan

ditions real
of

of

ability to perceive and to

Feb.

on

condition."

the

Treasurer of the New York Joint
Board of the

monthly meeting^

suggestions

end

Through his sympatetic under¬
standing and interpretation of the

business.

Scanlon,

Committee

Elliman

"(1) Require amortization
ments

car¬

,

off"

law:

'Na¬

great
serv¬
has
rendered.

the

at

American business system he has
been a real and
living force in
modern

and

Feb. 1 by the Chamber of Commerce of the

Special

B.

Chamber

years,

its

expresses

Dawson

William

declares that

adopted

-

responsi¬

| Directors

preciation
ice

the

"tapering

a

Drawn by the

Mr.

/

Business,' which he has

ried for

Senator

I

on

which

the U. S.

,

of

sentatives

Interfer¬

activity, in the real estate field is
"seriously hampered" by the moratorium law.
7 : /I; '- /
\

W.

"In accepting with
regret the
request of Mr. Merle Thorpe that
he

It could subpoena

:

Urging

./ ;

•

Thorpe, the directors of
-

on Feb,
include Repre~;

7.1 Speakers will

the

report made public

formal resolution recording

Chamber said:

with

State of New York

as

development

Jones, President.

a

measure

democracy."
meeting in support of the bill
our

"Tapering Off" Of Mortgage Icratorisun
I I Law Urged By N. Y. Ofiaitifeer Of Cemmerc®

Service

Jan. 29 by

on

will

we

will be held in Town Hall

en¬

both.

Thorpe to

Company and his appointment
was

by which

magazine's

He

•

election

in

courts

Urging adoption of the bill, the
Rev.
Charles
Keenan, associate
editor of "America," declared that
the legislation was necessary "to

several years
been Assistant Editor.

The

A

Langer, Repub¬
commission or its lican of North
Dakota; Roy Wilagents 'would be punishable by kins, editor of The
Crisis, Nath¬
$5,000 fine, a year's imprisonment, aniel;; M.
Minkoff,
Secretary-

Hurley, who for

the

meter

found and obtain the

Federal

witnesses and evidence.

Editor by Lawrence

as

the

forcing orders.

ing capacity.
In accepting his
resignation the board appointed
him

were

of

ence

enjoying
Thorpe

a

the true worth of

aid

Mr.

in

clared that adoption or failure of
the measure would be "the baro¬

nation

from

Business"

Organizer of the Brotherhood of
Sleeping Car Porters, AFL, de¬

mem¬

appointed by the President,

ployes with back pay if discrimi¬

more

now

CIO and the American Federation
of Labor favored the bill.
B. F. McLaurin, International

The
Commission
would order
the hiring or reinstatement of em¬

has carried

grown

400,000, and is

forbid

with the consent of the Senate.

Merle

circulation of

a

Union, which is an affiliate of
Congress of Industrial Organi¬
zations, said forces in both the

of race,

bers

than

Business"

the

Practice Commission of six

25 years.
During
period, it is pointed out,/"Na¬

nothing to

ers

discrimination be¬
color, creed, nation¬
origin or ancestry by any em¬
ployer or labor union, and create
a
permanent
Fair
Employment

sponsibilities of the editorial and
business
administration
of
the

tion's

Barron, a member of the
Joint Board of the Textile Work¬

employment relations

ment,

re¬

more

all

cause

as editor and
publisher of
"Nation's Business."
Mr. Thorpe
desired to be relieved of the

this

in

serious social situa¬

a

-Sam

al

Thorpe

publication, which he

further stated.

was

subject to control of the Govern¬

Of "Nations Business''
Chamber

ourselves in

tion after the war."

"The bill would ban discrimina¬

Thorpe Resigns As |
Editor And Publisher;

ican business."

Medina's

included:

Venezuelan

Dubinsky,
union,

garment

sential to the

has

■

the

the labor movement
to get behind the measure as "es¬

preservation and ex¬
Rabbi
Corrigan, U. S. Am¬
Sidney
E.
Goldstein,
tension of democracy in this coun¬
President of the Central Confer¬
Venezuela; Brig. Gen.
Norman
Randolph, U;S.A., and try." The same advices note that ence of American Rabbis, urged
the bill was introduced in the
Capt. Henry R. Richter,
adoption of the bill as a step to¬
U.S.N,,

F.

General Isaias Medina Angarita, President of
Venezuela, follow¬
ing an official visit to this.country, left La Guardia field
by plane
on Jan. 31 en route to New Orleans and
Miami before
returning to
Venezuela.
General Medina arrived in
Washington on Jan. 19, at
which time he was met at
Washington National Airport by Secre¬
tary Hull, who accompanied him to the White House where
he Was

of

upon

bassador to

-

Mrs.'

President

will continue his (Connection
with

Development Discussed
By President Medina During Visit To U. S.

received

which states that David

the

called

its greatest influence.
,

Post-War Venezuelan
V'

Elio

to

-V,

,

S.

"Nation's

/'

aides

/

The enactment of legislation for the
establishment of a perma¬
nent Fair Employment Practice
Commission, as proposed in the
Scanlon-Dawson bill, with power to enforce its
decisions, was urged
by leaders of the National Council for a Permanent
FEPC at a con¬
ference held on Feb. 1 in the offices of
the International Ladies Gar¬
ment Workers Union in New York
City. This is learned from the
New York "Times" of
Feb.
2,ft
r
■
——

Government officials at¬
tached to President Medina
were:

U.

for

ing together for the
in

have made

we

success.

yond what most Americans

to

means,

a

I'll

Warns of Faulty System
The

By working together

cannot

Urge Legislation Establishing Permanent
Fair Employment Practice Commission

his

of

We have the materials to work

sires

.

member

a

country. /'.

work.

life

entitled

feel

Jurardo and Ensign

Quintero-Medina,
President.

want to be needed and

us

Treasury; Dr,
Silveira, Minister of Pub¬
Works; Dr. Gustave ManriquePacanina, Attorney General; Com¬
mander Antonio
Bicardi, Chief of
the Naval Division of the
Ministry
of War and
Navy; Jesus Maria
Herrera-Mendoza, President of the
Central Bank of
Venezuela; Dr.
Manuel
Perez-Guerrero, Acting
Secretary to the President; Col.
Manuel

Alfredo

625

the

lic

which, he
thinks
minimum labor standards and fair stands in his way.
The impulse
standards of competition — and of
humanity toward full use and
then effectively discharge its', re¬ full expression is now so intense
sponsibilities. '■j as to be identical with life itself.
system

any

of

are

as

/

Total

applied for, $2,551,503,000.
Total
accepted,
$1,005,560,000
(includes $77,734,000 entered or* a
fixed-price basis at 99.905 and ac¬
cepted in full).
Average price, 99.905 + equiva¬
lent

rate

0.374%

of

discount

approx.

per annum.

Range of accepted competitive
bids: High, 99:910 equivalent rate
of discount approx. 0.356%
per
annum;

of

low, 99.905 equivalent rate

discount

annum.

approx.

(25%

for at the low

There

was

of

price
a

was

amunt

on

per

bid

accepted.) "

maturity of

ilar issue of bills

amount of

0.376%

the

a

sim¬

Feb. 10 in the

$1,004,665,000.

the head

sit at

Production And Trade Indexes Of

of the

American

world" peace

the

to

delegation

councils than Franklin D. Roose¬

N Y. Reserve Bank Are

Suspended

velt?"

j.

,

Woodring

Mr.

Thursday, February 10, 1944

FINANCIAL CHRONICLE

THE COMMERCIAL &

626

said

,>

the

that

"Agricultural Yardsticks" Issued By
#
N. Y. State Bankers; Revised

Booklet

definitive, revised edition of "Agricultural Yardsticks," a;
compilation of business and efficiency factors for measuring income
from farms, has been released by the New York State Bankers Asso-;
ciation.
The booklet, prepared by the Association's Committee orr
A

Feb. 1 Monthly party's choice for the presidency
of New York announces that, the was not restricted to any one
:
> ■;/
trade of the bank are being sus¬ man. ;'v
"A
roll
call,"
he
gathered,
pended. The Bank says: "The indexes stand in need of considerable
Agriculture from data supplied by the New York State College of
revision, in the light of the radical shifts that have occurred in the "would present, in addition to Agriculture, sets up working formulas for judging farm management
Cordell
Hull,
such
illustrious
economy during the war period, and it is not possible to undertake
by standards comparable to those lo¬
names as Harry F. Byrd, James A.
he work of revision under exist-^——
"
used .iri analyzing'.other types of farmers,
as
indicated by farmand
preliminary
estimates for Farley and the unpurged George
ng conditions.
Suspension was
management surveys, shows that
business.
•/■>.
crude petroleum production indi¬ of Georgia."
' %:;■ ■
;
hosen as an alternative to conhigher the land class the
Six criteria are used in evaluat¬ the
December published in its

With the figures for

Review, the Federal Reserve Bank
monthly indexes of production and

,■

■

inuation

basis that we did

a

on

We recaused

satisfactory.
inconvenience

lot consider

the

met

of indexes by this necessary

sers

February

the

of
the

"on

hole, the few indexes that are
iow
available for January indi¬
cate

continuation of the narrow
in general industrial

a

goods industries
contractions during De¬
Reduced activity at cot¬
ton textile mills resulted in a 7%
decline
in daily average cotton

showed

operations in
the chemical industry decreased,
reflecting cutbacks in Government
orders for small arms ammuni¬

have been charof
the
past
several
The Bank also has' the

which

cteristic
onths."

allowing to say in part:
"Total industrial output,

after

seasonal changes,
/as
somewhat
smaller in De¬
cember than in November.
Steel

declined

production

moderately

observance of
the
Christmas
holiday
and
a
brief
strike
that occurred to¬
ward
the
end
of the
month.
partial

reflecting

An industry that

tion.

Daily average production of pig
iron showed a slight decline for
the third consecutive month, and

showed a

gain in December was
coal mining, which had recovered
from the effects of the'November
sizable

The

and

maintained

Kansan

;

that

higher the farm income.
\
ing farm efficiency:
i
;' The booklet shows, for differ-;."
(1) Size of business.: . Moder¬
our citizenry through needed re¬
ent types of farming, both aver¬
ately large farm businesses pay
forms in the administration of the
better than do
small ones/ be¬ age and good rates of production
humanitarian Roosevelt. He
and efficiency with respect to the
cause of the large volume of sales
added:
farm - management
factors
and more efficient use of labor six
"Franklin D. Roosevelt will go
listed.
The, figures
given for
and capital.
down in history as the father of
(2) Production
per
animal. good standards represent about
the renaissance
of the common
Successful farm businesses usu¬ the average of the "upper third"'
man.
I am proud to call him my
ally have rates of animal produc¬ of the farms with respect to the
friend."
The Associa¬
tion of from one-fourth to one- factor concerned.
But, he said, there had been a
tion points out that by measuring
half above average.
revolt at the polls .since 1940. He
farm
against , the
"upper
(3) Crop
yields.;
The
more any
tremendous

operating under
a
new
wage
agreement.
The
daily average output of bitumin¬
ous coal increased 19%
and that
of anthracite approximately 11%.
"The expansion in retail trade
between November and December
was less sharp than in most other
years.
Since gift buying in No¬
vember was exceptionally active,
sales figures for that month were
strike

for

llowance

and

consumption;

luctuations

ctivity

nondurable

the

and

Review

that

states

Bank

he

recession
from
November peak.
Several of
slight

a

cember.

respect to production

rade,

the

curtailment."

artime
With

cate

was

high.
Seasonally ad¬
indexes showed declines
between November and December
output of nonferrous metals such
of 18% for sales of department
as-copper
and zinc (for which
data
have
recently been made stores and mail order houses, and
public)
remained
substantially 14% for sales of variety chain
store systems."
unchanged, seasonal factors con¬
The
December
indexes pub¬
sidered. Output of electric power,
lished^iil the Fel^rdafy Review
seasonally adjusted, declined for
follow: % ■■
the first time since March 1942,
unusually

justed

gains

have

come

to

...

it

that

held

not

was

revolt

a

Steel

means

Employment

(ICO

=

In December
number

of

employees in
continued to
decline in December, reaching a
The

Dec.

Index of

Producers'

131

„

.A

goods—total
durable goods__
'
Consumers* nondurable goodsDurable goods—total
;
Nondurable goods^totaP
Primary distribution

\

Distribution
■

to

(100

York

*

_1

*91

*26

|

*146

*145

•

■

*119

—

..,'118

*121

158

*149

*152

85

*90

*7.4

'

171

124

157

146

*157

74

} 81

nn; 76

r

Men Like Hull

Says Harry H. Woodring

chief of

Roosevelt

delegation

of War, Harry H.

the American >>
—
peace confer¬ plified by James A. Farley, former

Associated Press dis¬

national chairman.
He said

from Chicago in the New

patch

"Sun"

York

the

to

An

ences.

of

Feb. 4,

reporting

this, went on to say:
He

Woodring]

| Mr.

charged

guard had usurped
leadership in our Federal ad¬
ministration,
and that a wire¬
pulling Rasputin was sitting on
the United States Supreme Court.
The erstwhile Roosevelt Cabi¬
net member, conferring with as¬
sociates here on plans to bring

that this palace
a

of

that

a

to

two

four

efficient business venture.

Thus,

the

to

and

number

cember

employed

whole

1943, the industry em¬

of

ployed an average of 626,000
against average employment
647.000 in 1942 and 633,000

1941v;:;te^
Payrolls of the steel industry in
totaled

December

$140,203,000,

year's total to the
of $1,649,227,000. In
payrolls totaled $1,while in 1941 they

the

bringing

1942, steel
467,059,000

quantity

lots,'to

imprinted and distributed by

individual
upon

banks,

request to

available

are

Harold J. Mar¬

shall, secretary, 33 Liberty Street,

Experience of

Chamber ,of Commerce

The

York, 5, N. Y.

...

EconomicSecurity"

of the U. S. A. has inaugurated a-

publication entitled "American Economic
just appeared.

new

Security," the first

issue of which has

as

of
in

of

each/ Prices

Enliilsd "American

611,000

with

compared

(

U. S. Chamber Issues New Publication

in De¬

employees in November and 633,000 in December, 1942. Over the

■

,

Copies of the booklet are avail¬
able from the New York State
Bankers Association at nine cents

New

frpm which the following is also

dealers

customers..

February 1941, according to a re¬

port released on Feb. 8 by the
American Iron and Steel Institute,

types of farm loans,
who sell to farm

in .various

impor¬

methods,

(6) Land class.

of

are

ing their own, efforts; to banks,
for determining the risk involved

be

industry

steel

"Yardsticks"

value to farmers, for the evaluat¬

"The

Chamber, in an'
/
will be to provide current information on social

Bradford,

Italph

announcement

the

on

purpose

General

of

Manager

cover page,

the

"

says:

,

forum of opin-$>The National "Demobilization and Social Se¬
the
"Wagner-Murray^
necessarily curity,"
agree
with all viewpoints / ex¬ Dingell Bill and The Social Se¬
pressed in this and subsequent curity Act," Unemployment Com¬
issues, but it believes that tbmueh pensation—-! 943," Etc.
security,, and

ion

a

regarding

it.

not

will

Chamber

the competition of ideas and pro¬

No advertising is accepted in
practical and adequate the
publication and the annual *
system of social insurance can
lower
subscription price; is $1.00, It will
be
provided for the American
$141,467,000 but was substantially
be published 8 to; 12 times per •
people."
■ ■ ■£%;
above
December,
1942/ When
Mr, Bradford also states:
year, depending on. developments1
$129,368,000 in payrolls Were dis¬
"While individual effort in pro¬ in the field of social security, so-'
tributed
to steel industry em¬
viding for the future must alvyays cial insurance and related matters.'
ployees. ■
>
•
have a • high place in a free so¬
Wage-earning employees in the
ciety, recent trends have been
industry earned an average of
toward underwriting some of the
116.1 cents per hour in December
risks and uncertainties of life by
as against 116.4-for November and
109.4
cents ' in December,
1942. group effort, either through vol¬
untary or compulsory methods.
Over the whole year 1943, wage
"Formal compulsory social in¬
earners averaged 113.5
cents per
surances, administered by govern¬ ;v The Board of Directors of Swiss
hour against an average of 105.6
ment,
are
of relatively recent Bank Corporation at a meeting in
cents per hour in 1942 and 95.9
origin in this country.
Our na¬ Basle on Feb, 1,. approved ac¬
cents per hour in 1941.
tional social security program is
counts 1 for
1943,
showing net
Wage earners worked an aver¬
now only eight years old.
There
age of 43.2 hours per week in De¬
are
many .proposals
for change profits including carryover of 10,- ;
cember, compared with 44.8 hours
respecting it,
both from those 241,943 francs, against 9,875,180
per week in November and 40.2
who would expand the program francs for 1942, and total assets of
hours per week in December a

$1,301,348,000.
The
payroll was slightly
than the November total of

amounted

to

December

grams

a

(

Woodring who was also
formerly Governor of Kansas, in a speech at Chicago, on Feb. 4,
proposed that the Democrats nominate some one like Secretary of
State Hull for President and announced that he would call a national
convention of "loyal" party members to consolidate their forces.
Mr. Hull, if elected, said Mr. Woodring, could appoint President
Secretary

Former

from

going,

enterprises and enough
of each one to give efficient op¬
eration and production.
(5) Labor
efficiency.
Betterlabor efficiency on some farms is
due to better use of labor-saving

record figure
*124

65

'70

82

Democrats Should Nominate

:

"V'"'

'

69

City^-A--p—
t Adjusted for seasonal variation.

*174

*174

124

.

120

V-:

York

Preliminary,

145

147

__

City

Outside'New

*112

117

consumer—

Bureau of Labor Statistics—
1935-39 average)
-I—a—

rates—(100= 1936 average.)———
fVelocity of demand deposits—(100= 1935-39 averag
New

■'

*91

82

Wage

•

.*130

142

__

living,

=

108

*.«.

services

Miscellaneous

Cost of

*194
r

*25
*113

107

157

.-X;

*132

25

■

*164

*196
:

87

91

*133

-

*166

134

39

Consumers'

,

*135

195

—~*~

:Consumers',

.

133

207

durable goods—
nondurable goods.—.

Producers'

*124

*127

167

goods—total.A

Producers'

.125

136

A;

Production

Dec'.

Nov.

Oct.

.

123

production and trade.

third," it is possible to determine
whether or hot the farm is a

usu¬

better arrangement, of
fields and buildings, better size
and balance of business, and bet¬
total of 605,000 for the month, the
ter planning rather than to how
lowest
number
employed since hard men work.
!

the

The
1943—

1942

-

tant farm

taken:

and trade—
estimated long term trend)

tlndexes of production

businesses

farm

successful

against the Democratic party, but
ally have crop yields of from
against
policies,
administration one-fourth
to £ one-half
above
and personalities, and against the
average yields..
% .1.
power and influence of a group
(4) Balance
of business.
A
of fellow travelers.
;
': :
properly diversified or well-bal¬
anced
farm
business
usually

determined bloc

Democrats could ap¬
proach the forthcoming campaign
with
a
spirit
of
cooperation,
might hold the balance of power,
and could join any movement that
has for its purpose the repudia¬
tion of the palace .guard and its
philosophy of government.
He
proposed i that the party
unite in presenting to the nation
as its nominee for the presidency
loyal

Swiss Bank

Corp.

Reports On 1943 Net

year

as

1943, the

Throughout

ago.

work-week

averaged

43.0

hours

against 38.9 hours in 1942 and

38.6 hours in

1941.

from

and

those who oppose

such

In the post-war pe¬
we shall
doubtless see fur¬
discussion of the extent, cost,

expansion.
riod
ther

coverage
and
social security.

administration

of
v

francs,

1,473,255,671

against

nounced that at the general

tors

on

1,-

It is!also an-!

366,433,327 francs.

ing

:

meet-;

Feb. 25, the board of direc-,

will

propose

a

4% dividend

im¬
(same as last year), after which,
such a candidate as the honorable
portance of this whole matter, the
together party members opposed
Cordell Hull.
He asserted
that N. Y. State Bureau
Chamber, with this issue of a there would be a carryover of
to a fourth term for the President,
Mr. Hull's candidacy would
Attorney-General Nathaniel L. new bulletin, is inaugurating a 3,841,942.81 francs against 3,475,->
be
defined his views in an address
prepared for delivery before

the

Executives Club.
Mr.

Woodring reported that he

planned

to

Democrats to

ing in
ent

a

city,

all loyal
early April meet¬

summon
an

geographically conveni¬
such gs

St. Louis.

stated that there was an

ing

demand

for

a

He

increas,-

gathering "to
party"

re-examine the state of our
among
'Were

millions of Democrats who

out

of

sympathy

with the

palace guard

and who preferred

the 1932 type

of leadership exem¬




approved by

every

loyal Demo¬

"In

Ryan Resigns From

Goldstein has announced the res¬

of

Assistant

Attorney-

crat and that it would regain sup¬

ignation

port particularly in the South and

General W. Gerard Ryan, who has

the West.

been in

"With

He added:

Senator

Wheeler, James

A. Farley, Gov. McNutt or
tor Gillette as his running

Sena¬
mate,
constitutional government Amer¬

ment

recognition of the great

security service to
the public."
initial
issue
deals with

further social
The

Bureau

of

the

Department of Law since
1937. The resignation was
effective Feb. 1.
Mr. Ryan will

State

Oct. 16,

torney-General. In the latter posi¬
tion Mr. Ryan served as Counsel

Commissioner on
legal matters arising under the

to the Industrial

practice of law in New all
with offices at 25 Broad Unemployment Insurance Law. He
The announcement says: successfully prosecuted over 500
cult foreign policies of our nation Street.
"He entered State service July defendants for misdemeanors un¬
more
illustriously than President
Roosevelt.
Where in America is 1, 1931, as a.referee in the Work¬ der the statute and in many out¬
there a man better fitted, better men's
Compensation Bureau in standing cases supervised the pro¬
ica

is

"No

secure.
man

has handled the diffi¬

resume

York City

qualified, better experienced and New York City, where he re¬
mained until his appointment on
more entitled to be appointed by
President Hull to represent and Oct. 16, 1937, as an Assistant At-

are

as

francs.

New appointments

follows:

Louis

Gillieron,

General Manager; Frederick

charge of the Unemploy¬

Insurance

180.57

its members and to

ceedings
referee

from inception through
Appeal Board hear¬

kart,; Deputy

Manager with

Bur-'
the

General Management; Henri Gros
and Charles
agers

Hans

with
Meyer,

the Basle

•

Scherer, Deputy Man-l¬

the

Geneva

Office;

Sub-Manager

with-

Office; Rennell Moretti

and Robert Schaer,

Sub-Managers

with the Geneva Office, and Wal¬
ter

Preisig, Manager of the Heri-

and

ings and through the

courts."

sau

Office.

,

-

Volume 159

Number 4254

THE COMMERCIAL & FINANCIAL CHRONICLE
fall

eek Ended Feb. 5, I §44,

Shows

14.2%

electricity by the electric light and
industry of the United States for the week ended Feb. 5, 1944,
approximately 4,524,134,000 kwh>, compared with 3,960,242,000
kwh. in the corresponding week a
year ago, an increase of 14.2%.
The output of the week ended Jan.
29, ,1944, was 13.8% in excess
of the similar period of 1942.
v>v
.'%■%
power

Major Geographical Divisions-

!,j

-%y 5.0

Jan. 29

::
).

Jan 22

:

?/% v%.

5.6
!'

14.3
9.6

9.i

%■+

5.4

.

5.8

%.;'+

1

Southern States™

16.9

Rocky Mountain
■

28.7

■—

Total United States

WEEKS

4,413,863

3,761,961

+17.3

Nov. 13

4,482,665
4,513,299

3,775,878

+ 18.7

3,795,361

+ 18.9

over 1942

1941

1929

1932

1,520,730

3.347,893

1,531,584

1,818,169

Nov. 27

4.403,342

3,766,381

+ 16.9

1,510,337

1,718,002

4

4,560,158

3,883.534

+ 17.4

3,414,844

1,518,922

1,806,225

Dec.

11

4,566,905

3,937,524

+

16.0

3,475,919

1,840,863

Dec.' 18:

1,563,384

4,612,994

3,975,873-

+16.0

3,495,140

1,554,473

1,860,021

Dec

4,295,100

3,655,926 ..,-.+17.5

3,234,128

1,414,710

1,637,683

Ended—''1

Week

.

Jan.

1944

1943

•;

1943

over

1942

/%

192.9

1932

•

1

4,337,387

Jan.

8

,4,567,959

+15.6

3,472,579

Jan.

15

1,602,482

reported

3,952,479

+ 14.8

Jan.

3,450,468

1,598,201

22-;.—--

4,531,662

3,974,202

+14,0

3,440,163

1,588,967

29

1,717,315

3,779,993

+ 14.7.

3,952,587-

V

3,288,685

1,619,265

1,542,000

4,523,763

3,976,844

+ 13.8

3,468,193

1,588,853

3,960,242

+ 14.2

3,474,638

1,578,817

were

from

There

occupancy.

cigar

%

COST

>

,

and

Indexes,

the

decline

(Based
U.S.

Avge.
Cqrpo-

Govt.

Bonds

bond

ain

PRICESf

Average Yields)

on

averages

Aaa

Aa

A

Baa

R. R.

P. U.

118.40

116.22

111.25.

100.49

104.31

113.50

116.22

111.07

100.49

104.14

113.50

116.61

111.25

118.40

116.22

111.25

100.49

104.14

113.50

116.61

111.25

118.40

116.22

111.25

100.49

104.14

' 111.25

113.50

116.61

118.40

116.22

h. 11.25

100.49

104.14

113.50

116.61

111.25

118.20

116.22

111.25

100 32

104.14

113.31

116.41

119.42

111,25

118.40

116.22

111.07

100.32

104.14

113.31

116.61

104.14

113.31

116.41

119.47

111.07

118.20

111.07

100.16

119.58

111.25

118.40

116.41

111.07

100.16

104.31

113.31

119.57

111.25

118.60

116.41

111.5
.25

99-84

104.14

113.50

116.41

.7-wJi-.

119.69

High

116.41

111.25

118.20

116.22

110.88

119.41

117.00

116.85

1 Year ago
Feb. 8,
1943-

118.80

110.70

120.87 5 111.44

1943-—.

.Low

111.25

119.41

1943—.

111.07

119.73

1944—

116.80

113.89

118.60

107.44

116.41

.07
wx

99.36

103.80

100.49

104.31

113.50

abroad.

to

In

Feb.

7,

103.30

99.36

103.47

108.88

92.35

97.16

111.81

114.46

113.50

venture
that
at

that

117.40

108.88

117.60

115.24

109.97

94.56

99.20

112.75

115.43

117.01

106.92

116.22

113.70

107.98

91.91

97.16

110.52

,

(Based

U. S.

Daily : '
Averages
/•••'•?Feb.
8^*^'

Govt.

Individual

on

Bonds

rate9

1.84

3.10

3.10

1.87

Aaa

3.10

Aa

2.73

2.84

2.73

' 2.84

2.73

: V

2.84

2.73

A

%

2.84

Baa

3.1p
'3.11
3.10

3.72
3 72

R. R.

3.72

3.10

,,

Corporate by Groups*

•

.

% P. U.

3.49

3.72

2.98

3.50

2.82

2,98

3.50

'2.98

3.50

;

Indus.

,

2.98

2.82
2.82

,

+

2.82

1.87

2.73

2.84

3.10

3.10

2.74

2.84

3.10

3.73

3.50

1.87

282.%!vI+4

3.10

1.87

2.ZZ1Z

3.10:

2.73

2.84

3.11

3.73

3.50

3.11

3.74

3.50

2.99

2.83

3.11

3.74

3.49

2.99

3.76

3.50

2.98

3.79

3.52

2.98

2.84

2.82

2.99

2.83
2.82

3.11

2.74

2.84

3,10

2.73

2.83

3.10

2.72

2.83

3.11
3.13

2.72

2.83

3.11

2.74

2.84

3.12

3.81

3.55

3.00

2.85

3.10

2.71

2.83

3.10

3;72

3.49

2.98

2.82

3.31

2.81

2.96

3.23

4.25

3.93

3.07

2.93

2.94

2.78

1.85.
1.87

•

1.84

•

High 1943—+
■Low

2.98

2.99

'

1.86

High 1944—

'

2.08

1943-*

'

1

•

1.79

3.09

2.68

2.80

3.07

3.79

3.54

2.06

3.23

2.77

2.89

3.17

4.10

3.80

3.02

2.06

3.34

2.84

2.97

3.28

4.28

3.93

3.14

l Year ago

•

Feb.

1943—

8,

V

:

1942—

7,

*These prices

(3%%
level

coupon,
or

illustrate
of

in

yield

the
in

are

computed from average yields on the basis of
maturing in 25 years) and do not purport to show

2.88

.

one

2.97

"typical" bond

either

the

average

movement of actual price quotations.
They merely serve to
comprehensive way-the relative levels and the relative
movement
the latter being the true picture of-the bond market.
i

average
a. more

averages,

tThe latest complete list of bonds used in
computing

the issue of Jan.

14,

1943, page 202.

'■

■

■..+'

these indexes

was

published

.

.

/

"Retail prices for consumers' goods in
large cities advanced 0.2%
from mid-November to
mid-December," Secretary of Labor Perkins
reported on Jan. 21.
"Costs of clothing and coal were

higher, and

rents moved up slightly from their November levels
while food
•.prices declined 0.1% over the month," she said,
"The total cost of
the budget of the moderate-income
city family on Dec. 15, 1943,
,- was
3.3% above the December, 1942, level and ,23.4%
higher than
'in January, 1941, the base date of the Little Steel formula. The
cost
of living index of the Bureau of Labor Statistics stood at
124.4%

of the 1935-39 average in December and
Perkins further reported:

124.2% in November.

Miss

"Clothing costs advanced 0.87c from Nov. 15 to Dec. 15, to a
point about 34% above the pre-War figure, largerly because of the
(continuing:trend towards replacement of low-cost merchandise by
expensive price lines.

wholesale

purchases

and

Retailers' stocks

replacements

were

generally

depleted by early
reflected

*Revised.

.

„,

wage

*126.7

117.6

*126.9

108.1

109,5

127.9

118.1

134.6%

'

1943

'

tricity

Rent

and ice

+0.1

+1.4

+

0.8

+

1943

3.3

+

6.9

+0.1

+

3.0

+

3.4

+

4.7

+

6.0

+

nish-

laneous

,

+

5.6

+

8.3

+

7.0

+0.1

+

3.5

7.2

+12.7

+

6.7

—1.6

+

4.4

+

4.7

+40.2

+33.7

+3.0

+

8.6

+27.8

+26.2

fThese indexes

+46.6

based

are

on

+34.2

+3.6

3.1

+

+

12.3

.

-X

January

business

in

both

of

failures

+27.1

+17.6

number, while the remain¬
ing districts all had less failures
in
January than in December.

1942.

number

liabilities

Business

are

When the

and

insolvencies

and

/winter clothing.

Extremely limited supplies of children's clothing,
men's work clothing; of cotton pajamas, and shorts were
reported in
Larger supplies of wool available for civilian




use

this

amount of liabilities

is

ago.

The decrease

failures

in the number

is

ber took place in all of the divi¬
sions of trade into which the re¬

port is divided except the
and

the

Commercial

more,

Service

liabilities is considered, the man¬
ufacturing and wholesale groups
show larger liabilities involved in
January than in December, while
the remaining groups had smaller

month

failures

31,

bilities.

ities

Wholesale
from

16

increased

last

In

the

retail

solvencies

to

failures

de¬

13, but liabil¬

from

$217,000 in
$223,000 in January.

December to

trade

were

A! Smith Heads B. Y.

in¬

section,

lowered

from

68

to 50 and liabilities from $561,000
to $304,000. Construction failures
numbered 13 with

$183,000 liabil¬
ities in January, which compares
with 20 with $247,000 liabilities in
December.

Commercial

failures numbered
the

same

liabilities

against
When
into
is

mond

uary

in

13

in

service

January,

December,

$105,|000

in

and

January

$191,000 in December.
the
country is divided

Federal

seen

tricts

as

Reserve

that the

and

had

more

Districts

it

Cleveland, Rich¬

Atlanta

Reserve

failures

this

in

only
today.

war

in

referring

his

to

thing as an unessential
Either you're in the

He warned

ple

to

not

the

American peo¬

deceived

be

by false
propaganda about the Soviets, and

said that Russia had lost too many
millions of men and had too much
stake

at

to

sign

separate peace

a

with the Nazis,

Capt. Rickenbacker said that he
a

had

of Russians that he

group

not

in Russia the Com-

seen

that

"commies"

the

in

America had and yelled so about,
and he asked the Russians if

they

knew what Americans said about

Communism.

He

said

that

the

Russians

laughed and said that
they had had to go through the
20 years ago.
"One
said to me," the Captain

thing

man

related, " 'every dog has fleas and
you've got most of our fleas in
America.' "

Former

.

in

Dis¬
Jan¬

than in December, that the

Governor

Smith has accepted
of

Committee

the

Alfred

E.

chairmanship
for

Economic

Development in New York City,
and Clarence Francis, Chairman
of

the

Board

General

of

will be Vice-Chairman.;

Foods,

The ap¬

pointments were made on Feb. 4
by James H. McGraw, Jr., Presi¬
dent of the McGraw-Hill Publish¬

Co.,

CED

chairman for
//., ;

State of New York.

involving

$893,000 liabilities, compared with
28 in December, with
839,000 lia¬
creased

bil¬

to win

us

or
you're out of it. And if
you're out of it the only thing you
get is a chunk of bread a day."

old

ing

,.

numbered

or

•

manu¬

group, which had the-same num¬
ber of failures in January as in
December.
When the amount of

/ 'Manufacturing

such

no

same

of

in Jannary from Decem¬

matter how many

declared

munisim

according
to
Dun
&
the Minneapolis Reserve District,
Bradstre.et, idc., totaled. 120 and1
which had the same amount, all
involved $1,708,000 liabilities, as
the Federal Reserve Districts had
compared
with
145
involving a
smaller amount of liabilities in¬
$2,055,000 in December and 458
volved in January than in Decem¬
involving $5,515,000 in January a ber.
year

400

a

recent visit to the Soviets. "There

Kansas City Reserve Districts and

January,

and
debt.

Russia,- Capt. Rickenbacker

told

the

in

dollar

no

considered, it is learned that with
exception of the Philadelphia,
Richmond, Atlanta, St. Louis and

involved

January,

said

war

neapolis Reserve Districts had the

Failures Again Lower

and

lions of dollars it costs

industry.

+15.9

Philadelphia, St. Louis and Min¬

January Business

homes

billion

he
-

changes In the cost of goods purchased by
large cities, ;;
-^

workers in

1,000.000

Japan,

may cost us sadness

man, woman
and child in Russia is in the
war,"

Miscel-

ings

+
.

war

said he believed it to be the

6.5

"

+23.4

1943

subdue

that the

~

0.3

+

3.3

+

and lower-salaried

earners

'

0.8

Clothing

the
may

"Every able-bodied

+

Food

0.2

after

Europe it

another five years to com¬

us

pletely

Of

House-

—0.1

items:

1943

that

in

cease

all-out nation
Fuel,

'

•

.

predicted

hostilities

llf.7

137.1

warned

been nibbling
this war and

fringes of
real fight lies ahead of

He

.

higher

prices permitted under OPA pricing formulas for fall

most cities.

112.8

107.9
108.0

Members

the

,

of the National Com¬

mittee present at the meeting with
Mr. Smith included: Paul G. Hoff¬

President
of
Studebaker
Corp. and Chairman of the CED

man,

of

board

tinental
the

of

trustees; Carle C. Con¬

Chairman of the Board, Con¬

way,

Can

Co., and

CED

finance

of-the-Month
ney

&

Co.,

he told the Russians that he didn't
like

their

long

as

of the
and

trustee;

ideology,
they kept it

fence, it

we

must

sians,

try.
good
friends, the English," he said, "the
Russians

than

do

can

due

that

today,
the

the

lowest

have

to

diers

on

Jap

fronts

Beardsley

the

Bank of New York,

CED

York,
CED

York.

and
staff

regional

for

R. B.
for

trustee;

manager

State

of

of

New

Crispell, of the

the

vermin

was

war

was
we

sol¬
doing a

our

were

magnificent job.

Moody's Daily

Commodity
Tuesday, Feb.

State

of

248.6

1——

Wednesday, Feb, 2
Thursday, Feb. 3_„———
Feb.

Tuesday,
Two

Year

ago,

1943

High,

Low,

New
1944

High,

248.9

-

248.8

—

Jan. 25_____
8

8_

247.8
__

-

-

__

___

1

April

Jan.

-

2

—

_

248.3
248.7

-

.

Jan.

Feb.

__

—

8

ago,

ago.

248.7

,

4^„_-

Feb.

weeks

Month

the

of

soldier

of

and that

fight,

Saturday, Feb.
5;
Monday, Feb. 7

Rich,

theatre

form

all

He de¬

South Pacific

terrible

most

we

our

people."

other

clared that the

the

to

like Americans

more

are

any

if

so

respect

and Chairman of the Federal Re¬

A.

that

Communism,

get along with the Rus¬

and

"With

Friday,

R.

added

He

while he didn't like

Ruml, Treasurer, R. H. Macy Co.,

serve

but that as
their side

on

their business

was

his.

of

none

Club,, trustee; Sid¬

Weinberg, partner, Goldman,

Sachs

Captain Rickenbacker said that

Chairman

committee;

Harry Scherman, President, Book-

*

Christmas

123.7

'

108.0
108.0

15, 1941 to Dec. 15, 1943
Aug. 15, 1939 to Dec. 15, 1943

liabilities.

Living Costs In Large Cities Advanced 0.2%
Between Nov. I5-Dec. 15, Labor
Dept. Reports

more

106.3

*133.3

*133.5

facturing group, which had

2 Years ago

.Feb.

111,4

138.2-

Jan.

2.83

3.50

1.87

■---»■■

—'•

108.0

110.9

137,3

Pacific

war," he said, "the cost will
be insignificant in comparison to
what we will pay if we lose this
war."
•'

101.9

122.2
123.6

'

All

2.83

3.10

3.72

1.86

21-—>—

vv«\i4:c_7,2SU:.

—

125.9

' 100.1

106.2

'

124.4

'

amount

Closing Prices)

Corporate by Ratings*

■/■,: 3.10

1.85

+

1944

132.7

-100.8
104.9
i

108.0

124.4

than in December and in

Corpo-

1.86

'Low

105.0
109.9

1

125.8

*124.2

15, 1943 to Dec. 15,
Dec. 15, 1942 to Dec. 15,
Sep. 15, 1942 to Dec. 15,
May 15, 1942 to Dec. 15,

lower

Avge.

'

f'

126.2
-

~

Date—

113.70

MOODY'S BOND YIELD AVERAGES

Jan.

15

> 100.7

fighting
epic ad¬

an

the

same

1944—

the

us.

in

of

the

have only

we

take

hero

in

the

116.22

117.08

1942—

7_

97.8

116.02

111.81

113.12
114:27'

%

,h.

v

characteristic

speech, the

"But

laneous

>100.4

remarks:

a

500

100.6

third

a

The New York "Sun" of

backer's

Miscel-'

nishings

97.5

could

averted, and called

6, from which the foregoing
taken, also had the following
say
regarding Capt. Ricken-

is

House-

and ice

104.3

be

Feb.

'

Rent

100.3

Russia

war

cooperation

States, Brit¬

for far greater efforts on the home
to
back
up
our
soldiers

■%"'

116.61

99.04

:

2 Years ago

.

15
15,

*Nov.

116.41

14—„

1944

:

Indus.

21

High

100.8

%

93.5

.

r

116.61

118.40

116.22

\

CITIES

United

front

in

PERCENT OF CHANGE

111.25

,

'

120.4

Oct.
Nov.

*

111.25

•

,

■

Low

126.6

15

Clothing

121.6

117.8

98.6

—„

Corporate by Groups*

119.41

28

116.0

15—

^

■

119.41

Jan,

15

Sep.

15

Dec.

119.45

*; 1:^%%

May

.

119.50

3i:::i;

1942:

are

118.73

8

LARGE

1935-39=100t

Food

Jan.

'

'

rate*

All items

15%—%—•

Aug.

1941:

♦,

,

,

Corporate by Ratings*

•

,

Averages

119.68

Feb.

IN

post-war

the

and

world

hard to obtain in December, and
a. half dozen cigars."
1

electricity:,, fur-'.

1939:

yield

closest

between

average

were

Fuel

1943:

MOODY'S BOND

1944—

LIVING

OF

Dec.

And Bond Yield

Daily 7;/+%
Averages

were

1,726,161

Moody's computed bond prices
given in the following table: ://%%.'::/

y

and the

sign a separate peace
Germany; that only through

never

with

flour, and

bill from September to
of the 34 cities included in the

21

rationing purchases to

1,728,203

4,524,134

5+~r%*Av.+

dealers

Date—

+

will

The average price in
cents below the November

year.

3

1,736,721

Feb.

r:

of

was

from

brands of the five-cent

1,733,810

4,539,083

Jan

'■

time

,

% Change

$

this

dozen)

a

War Bond rally at the Bankers
Club, in New York City, on Feb.
6, said that in his opinion Russia

was

September to December in 4 cities.
In some
cities, owners were holding vacant properties for sale, thus adding
to the shortage of homes available for rent.
"Shortages of furniture and the disappearance of cheaper fur¬
niture, towels and brooms resulted in higher costs for housefurnishings.
Higher charges were reported in several cities for nursing
care
and hospital services, barber and
beauty shop rates, motion
picture admissions, newspapers, and household supplies.
Popular

1,793,584

1,475,268

Dec.

•

were

rents

average

1,798,164

3.368,690
-

December

for
a number of adjust¬
by OPA under its rent regula¬

3.247,938"
3,339,364

25

at

per

tions, principally for increased

1942

Nov.

.

cents

Bureau of Labor Statistics' cost of
living index,
the large cities was up 0.1%.
The rise reflected
ments in individual returns allowed

1943

1943

Nov. 20

14.8

% Change
v

(64

December

(Thousands of Kilowatt-Hours)
'

Week Ended—

12.8

29.9

i4.o

Capt. Eddie Rickenbacker at
to

most fresh vegetables were
up seasonally.
"Slight advances in the average rental

17.4

11.5

%//:■,;/:.//•;

13.8

10.3

29.4

The Heme Front

average, with some stores advertising prices below the OPA
ceilings.
Pork prices in most cities were lower
than in November with
increased supplies on the market and an
accompanying increase in
the civilian ration.
Prices were higher for fresh fish and

.

'.v:1;::;: .6.4

16.7

V %"V.

+12.0,

+.+V30.8%:%;;

■jy'r'j; ,/

3.4.2

DATA FOR RECENT

•■«%;

,,Vc: t:,

9.9

1

December

5.3
14.5

6.2

15.8

1

i2.o

Pacific Coast

•

"

larger than usual

was

■

Urges

Greater Efforts On

was

November

Jan.15

■"

13.0

Rickenbacker

clearance sales of women's

cities in December.

primarily due to a 5% drop in egg prices, and to lower prices for
pork, lard, peanut butter and oranges.
The decline in egg prices

—

3.2" '■■■>;/

V

11.9

•

West Central

/v-

+

'

Week Endea-—
Feb. 5

New England.__

.Middle Atlantic.^,
Central Industrial

*

YEAR

clothing, particularly men's

were

and from 5 to 30 cents for
bituminous coal.
"The decrease in food costs from

i//M

PREVIOUS

all-wool

627

granted by OPA after
higher labor costs involved in the wage
settlement.
The increases in retail prices from
November to De¬
cember ranged from 60 to 70 cents a ton for
Pennsylvania anthracite

was

OVER

of

some

"Permission to. advance coal
prices
mid-November tocover

The Edison Electric
Institute, in its current weekly report, esti¬
that the production of

.

volume

coats, and there

fur-trimmed wool coats in

mated

INCREASE

the

suits and women's

Gain Over Same Week Last Year

PERCENTAGE

increased

-

__

-

247.3

244.8

249.8
240.2

248.9

!THE

628

$472,750; San Leandro, Calif., 73 one-family dwellings to. cost $291,500; Santa Monica, Calif., 59 one-family dwellings to cost $225,200;
Seal Beach, Calif., 58 one-family dwellings to ycost $270,000; South
Gate, Calif., 69 one-family dwellings to cost $202,000; Portland, Ore.,
189 one-family dwellings to cost $1,016,050; Seattle, Wash., 183 one-

Permit Valuations 7% Lower
Than November, Dept. Of Labor Reports

December Building

dwellings to cost $529,300; Tacoma.

of Labor Frances
half the 1942 total
of $2,661,000,000," she said.
"Decreases occurred in all classes of
construction from 1942 to 1943 with the greatest drop, 67%, in new
nonresidential building.
Federal construction contracts awarded
62% less in 1943 than a year ago.
Although the valuation
of private additions, alterations and repairs decreased 9% from 1942,
this type of construction represented 17% of the 1943 total of private
construction as contrasted with 9% of the 1942 total."

a

were

Secretary Perkins'

further stated: a
family dwelling

209,745 new

"The

a\a:>'; a;.

permits were
during 1943 repre¬
280,152 units started
started in 1943, were

units for which

Federal construction contracts awarded
sent a decline of one-fourth from the total of
during 1942.
About 90,000, or 43% of the units
in Federally financed war housing projects."

issued

AA

or

w,i,

.

1943 '
1942
(In thousands

.-Va'a!.
of construction—

V.';. :
..

Class

Total—

,,

of dollars), a

nonresidential
alterations

New
*

47.7,023

•

Additions,

-

repairs

and

.

237,970

'

1942
N

206,536
370,169

%■

:

change
—62.2

—57,0

and
respectively.

nonresidential
the
rise for the
construction declined

;;

About-one-third
this
39%

Class

1

of construction—

building; constructionNew residential '

All

New

:

—

■

Total
— 7.9

;

nonresidential
—v.
alterations and /"/•

■

+17.0

■'— 5.5

—43.5
+44.4;

—18.4

Additions,

The

9.5

5.9

L-Ai? —23.0

-11.8

8.3

8.5.

repairs

Federal

Federal

Federal

Total
—10.9
—

2.7

+—32.5

+32.3

A
.

+16.6

.

-

+11.0

•

Federal
—38.9
,—26.9
—42.3

WEEKLY

the

WHOLESALE COMMODITY

Compiled by The National Fertilizer
1935-1939—100*
a,

+

■

■

,a

,■
.

'

'

Each Group

25.3

i

■

•

,

—,/

-

—

Olls-A
Cottonseed OIL—.--

Fats

Department's report further stated:
total of 14,340 family dwelling units

,

Feb. 6,
1943
-

December, when ' changes iri
war needs caused many orders to

137.5
'

148.5

and

7

:.

-.

151.0

147.9

-

120.0

A

-

129.0

150.6

,

-

195.6

134.5

-

—

be cut down'and

159.0
C

:

23.0

conditions

the unsettled

"After

of

started during De¬
cember, 1943, was one-fourth below the total for the previous month
and 12% less than that for December, 1942.
Federal contracts were
awarded for 5,878 units in December, or 40% less than in November,
1943, and 30% less than in December, 1942.
The December, 1943,
151.7
total of privately financed dwelling units was 10% below the No¬
vember total but 6% higher than for December, 1942.
The figures on building construction cover the entire urban area
"I Fertilizer materials
—— •
117.7 . 117.7
117.7
-Fertilizers
119.9
119.9
119.9 •:
of the United States which, by Census definition, includes all incor¬
machinery
'
104.2
104.2
104.2
porated places with a 1940 population of 2,500 or more and by special
combined
137.2
137.2
136.4
134.1
rule, a: small number of unincorporated civil divisions.
The volume
of privately financed construction is estimated from the building
1926-1928 base were: Feb. 5, 1944, 106.9; Jan, 29, 106.9, and. Feb. 6,
104.5. 7
,
permit data received from a large majority of all urban places and
these estimates are combined with data on building construction
contracts awarded as furnished by Federal and State agencies.
All
figures for the current month are preliminary. Upward revisions in Steel Output Again Rises—Upward
Federally financed nonresidential construction may be expected, due
V The

month ago,

follows:

-

139.7 ;

•:

one

Ago

Jan. 8, ■
1944

140.2
139.7
146.1". 146.1
146.1
+:A'
159.6 ."■ 159.6
159.6
Farm Products
156.5' a • 156.1 ; a -154.2Cotton
196.5
193.1
190.8
.'-'I
Grains
/ 164.8
164.8
164.6
■'A
Livestock
■ 147.5
,147.6
145.1
Fuels '!
—-A—129.5 . 129.5 +127.6
% Miscellaneous commodities
—
131.4 : 131.4
131.4
Textiles
——151.4
150.9
150.5
Metals
„+
: 104.4
104.4
104.4
Building materials
—152.4
152.4
152.4
Chemicals and drugs
127.7
127.7
.177.7Foods

1,731,300 tons
and 1,698,700 tons
one year ago.
;'y.Y
"Steel" of Cleveland, in its sum-,
mary of the iron and steel mar¬
kets, on Feb. 7 stated, in part as
week ago,

tons one

Year

Latest Preceding Month
Week
Week
-Ago

■'A+'+'+_'Feb. 5,.-..'Jan. 29,
1944
1944

Group

the

Total Index

■

PRICE INDEX

Association

The

ago.

year

one

operating rate for. the week be¬
ginning Feb. 7 is equivalent to
1,741,800 tons of steel ingots and
castings,
compared to 1,734.800+

remained the same*
five price series advanced and four declined;
preceding week six advanced and three declined; and in
preceding week seven advanced and two declined.
,

During the week

98.1%

and

industrial commodities

-60.9

+90.3

comparatively slight. The
due to lower quotations on oranges and

advanced as higher prices
hogs, lambs and
level for the third
fractional changes.
Cotton again registered further gains, causing this index number to
reach a new high for the period since August, 1943.
The average of

Bears to

+55.0

"

(

However, the farm products group
were quoted for cotton, good cattle, calves, light
sheep. The grains group has remained at the same
consecutive week as prices continued to show but

in the

has been

scrap

Middle West from
jCoast in large quanti¬
ties/said to total around 100,000
tOnS," a.
J'
■
+"•
The American Iron and Steel
Institute on Feb. 7 announced that
telegraphic reports which it had
received indicated that the oper¬
ating rate of steel companies hav¬
ing 94% of the steel capacity of
the industry will; be 100.2% of ca¬
pacity for the week beginning
Feb. 7, compared with 99.8% one
week ago, 99.6% one month ago
the Pacific

eggs.

second

Maritime

cently

moving to the

general level of

^

marked a decline

foods group

"

OtH.than

i-f

.-■"Maritime
Commission plans
for disposing of its surplus ma¬
terials are being followed with in¬
terest because of the large quan¬
tities that may be involved. Re¬

changes.during the week were

Price

non-Federal
of work

<

change in the

no

was

ciation's report added;

November to

.

dustry costs.

wholesale com¬
the price index compiled by
made public on Feb. 7. This
index continued at 137.2, the same as in the preceding week.
A
month ago this index stood at 136.4 and a year ago at 134.1, based
on the 1935-1939 average as 100.
The current level of 137.2 shows a
rise of 2.3% over the comparative 1943 figure of 134.1., The Asso¬

The Labor

'

that there

modity prices last week, according to
The National Fertilizer Association and

December, 1943.
Department's announcement added:
V-", •'
•%a "Total building construction valuations were one-tenth less in
December; 1943, than in December, 1942, although, additions, altera¬
tions and repairs increased by more than one-half.
less new nonresidential construction was started in December, 1943
; than in December, 1942, and new residential construction for
same period decreased 3%.
Federal construction contracts were
less in December, 1943, than in December, 1942, while
permit valuations rose by almost one-third, with all classes
"sharing the increase."
'
A'aaaaaa
.aaaa >.'v aaa - 2
■.■■■",
Percentage change fronr ■■
Nov. 1943 to Dec. 1943 ¥,■'
Dec. 1942 to Dec. 1943
Oth. than A- a
from

.

Feb. 4 stated

Unchanged

Price Index
There

permit valuations and Federal contract awards
for November, 1843. New nonresidential con¬
struction increased 17%, while new residential construction
additions, alterations and repairs dropped 23% and 9%,
Federal building contract awards declined 6% and total valuations
for private building decreased; 10%.
New
was
only class of Federal building construction to show a
period, 44%.
All classes of private building
8% below those

Bowles on
might be
increases in some products, and
decreases on others, No across-theboard action, blanketing all steel
products, is contemplated. In some
quarters, the Bowles statement
was
interpreted as a tipoff that
the steel industry will not get as
wide scale an increase as it might
have expected, but producers gen¬
erally remained
confident that
cost data which have been submit¬
ted amply support the need for
higher prices in certain items,
notably rails and semi-finished.
OPA is making the most complete
survey ever attempted of steel in¬
ministrator ' Chester

'

—69.6

December, 1943,

were

Commodity

JNational Fertilizer Association

—34.2

37,049

15,950

'

,

'C
1,558.105
313,859
1,217,197

592.655

—51.3

.

Fe^cral-

•

of dollars)

915,833
—36,5
1,464,034a' —67.4
v'
A^J'A a :• '"a;;
230,960
—15.3

New

■■

(In thousands

%
'change
;■>

2,660,937'

construction A*, j, 1,296,703
residential _+_■'
581,705

All

■

J;,

1943

Spokane, Wash., 116 one-family
/Wash.,- 65 one-family dwellings
to cost $302,800.
;:v;.
;+a
In addition, contracts were awarded during December, 1943, for
the following Federally financed projects containing the indicated
number of housekeeping units: Trenton, N/J., $439,168 for 120 units;
Allentown, Pa., $732,850 for 260 units; Benton Harbor, Mich., $646,896
for 200 units; Flint, Mich.,, $696,000 for 220 units; Pontiac Mich.,
$273,800 for 80 units; Cleveland, Ohio, $1,360,000. for 440 units; Lima,
Ohio, $175,880 for 60 units; Kenosha, Wis., $738,900 for 260 units;
Anniston, Ala., $96,897 for 38 units; Tuseumbia, Ala., $238,361
for 100 units; Galveston, Texas, $1,225,000 for 600 units; iOxnarcl,
Calif., $733,600 for 400 units; San Diego, Calif., $5,264,942 for 2,500
units;: Seattle, Wash., $1,228,247 for 600 units.
Federal contracts were also awarded for dormitory accommo¬
dations for 108 persons at Newport News, Va., to cost $125,617.
,
family dwellings to cost $811,500;

of the United States

started in urban areas

Building construction

during 1943 was valued at $1,297,000,000, Secretary
Perkins reported on Jan. 29.
''This was less than

1944

Thursday, February 10,

CHRONICLE

COMMERCIAL & FINANCIAL

steel tonnage to

in Jan*

cancelled, the market

be

uary

assumed a more orderly ap¬

pearance

and mill books were

conditions.-

re^

to the new

adjusted to conform

-

,

-

„

104.4

:

A

been

has

"Buyingrecently

.

'

177.6

'

+

117.6

119.8

•

a

Farm

All

100.0

104.1

-

1943,

irregular, due in large measure : to
shifts in' the war program and, *
while

deliveries

*,

Trend

:

notifications of

to late

contracts awarded.

of various types
permits were issued or contracts

Principal centers
which

1943, except

projects which have

been excluded because

of their

factory building to
and utility building
dwellings to cost
$299,000; Scranton, Pa., three factories to cost $850,000; Yeadon, Pa.,
72 one-family dwellings to cost $230,400; Chicago, 111., 93 one-family
dwellings to cost $401,050 and 26 units in two-family dwellings to
cost $102,000; Melrose Park, 111., 50 one-family dwellings to cost
$200,000; Indianapolis, Ind., 42 one-family dwellings to cost $182,000;
Adrian, Mich., 54 one-family dwellings to cost $270,000; Detroit,

confidential nature, were:. Boston, Mass., one
cost $100,000; Queens, N. Y., one public works
to cost $850,000; Philadelphia, Pa., 62 one-family

'

.

of building construction for
were awarded in December,

Mich., 366

one-family dwellings to cost

$1,860,200; Cleveland,

Ohio,

cost $150,000; Milwaukee, Wis., 25 onefamily dwellings to cost $102,000 and 42 units in two-family dwellings
to cost $159,800; Washington, D. C., 41 one-family dwellings to cost
$149,100 and eight apartments providing 174 units to cost $469,000;
Baltimore,i Md., 200 units in two-family dwellings to cost $516,000;
Baltimore County, Md., District No. 12, 64 apartments providing 500
units to cost $1,334,400; Beaufort, S. C., 50 one-family dwellings to
cost $176,000; Arlington County, Va., 63 one-family dwellings to cost
$367,700 and five apartments providing 108 units to cost $742,500;
Birmingham, Ala., one factory building to cost $124,251; Memphis.
30

one-family dwellings to

Oklahoma City.
40 units in twofamily dwellings to cost $104,000 and five apartments providing 36
units to cost $98,000; Dallas, Texas, 104 one-family dwellings to cost
$192,047 and 42 units in two-family dwellings to cost $78,650; Hous¬
130 one-family dwellings to cost $338,350;
Okla., 237 one-family dwellings to cost $1,138,000,

Term.,

dwellings to cost $273,006; San Antonio,
to cost $150,000; Salt Lake City.
cost $225,500; Springville, Utah, 75
one-family dwellings to cost $225,000; Alameda, Calif., 79 one-family
dwellings to cost $316,000; Burbank, Calif., 48 nner family dwellings

ton, Tex'.s,

95 one-family

74 one-family dwellings
Utah, 46 one-family dwellings to

Texas,

Exceeds

Expectations-Sheets Continue Tight
Iron

production continued rising this week," reports "The
Age" in its issue of today (Feb. 10), which further goes on
say:
"While the recognition of new capacity as of Jan. 1 will result in
downward corrections by a few points for this and the five
"Steel

$157,710; Compton,

cost

-




.

_

....

on some

occasionally,

products, flat-

particular, are well ex+

in
so

not plan

far that consumers can¬

their

own programs

that*

far ahead with any assurance,.; >

"Greater

activity

at; any time.
in

month total out-<S>——
——
——require about 1,200,000 tons of
put of steel: ingot and castings
carbon steel for farm machinery
iotaled 7,819,061 tons.—Ed. |
in the year starting next July 1
"Steel order volume in general
has been
announced.
Commit¬
is exceptionally high with respect
ments on new domestic freight
l.o
shipments.
Plate deliveries
cars aggregating about 28,000 cars
which set a record last year es¬

other

may

develop*

Further restrictions

light ammunition are likely to

be offset by an

,1

increased program

for heavy shells.

Heavy

artillery^

production is being increased and.

uled

ordnance items
for

production

are

sched¬

but are- not/%

yet an important factor.

A reduc¬

has been made in

the Gov¬

tion

ernment's locomotive program but

j

more steel is definitely scheduled
covering the
tablished a new mark last month
domestic
railroad
account^
first three quarters of this year. for
at 1,173,164 tons.
High pressure
(Freight car makers, incidentally, Generally sustained demand is ex+
output Will continue for weeks to
are reported to be worried about
pected at least until the European),
come and will result in continued
rising 'costs
of
material and invasion is well

have

tightness

of

steel sheets

been

made,

which

undqr way.

'

extended on mill order labor). There are indications that
"Announcement has been made
tin mill production may be ex¬
books into the latter part of this
panded substantially as the per¬ by Office of Price Administration'
year and in a few cases into 1945.
mission to make steel beer cans for that it will be in a position by

now

are

When and

■

if plate demand

backlogs on sheets may
ened

eases,1

be short¬

considerably,
slight dent in the

and

off-shore

tion will

foreign

require

a

consump¬

large tonnage.

the

latter

make

its

of

February

to

first determinations

on

•

part

weather has caused
high demand for wire products whether price increases should bq 1
for
farmers,
Oil well drilling
granted
to the steel industry. !
early this year will require much Studies have been made of- the
steel pipe.
While details regard¬
current situation in steel prices,
ing requirements for construction
of the projected 1250-mile trans- based on cost records* supplied by
Arabian
oil pipeline which the 90% of the industry.
matter, however.
U. S. will build have not been
"Recent
steel. allocations em¬
"Pig iron distribution without
announced, it is reported that the
phasize the fact that essential
allocation has been adjusted with¬
main line will be built of 24-in.
civilian needs
(contrasted with
out difficulty, and while smelters'
or 26-in. seamless tubing and will
regular civilian manufacture)
involve
approximately
120,000 in general are adding to inventory
haven't been completely forgot¬

nation's
two
billion
pound surplus of
aluminum is being planned by
WPB, which has offered 100,000,000 lb. to the Army for making
landing mats.
The latter has not
reached a final decision on the
"A

Calif., 59 one-family dwellings to cost
$160,200; Hawthorne, Calif., 91 one-family dwellings to cost $326,500;.
Los Angeles, Calif., 241 one-family dwellings to cost $746,275" and 25
apartments providing 100 units to cost $277,500; "Oakland, Calif., 164
units in a two-family dwelling to cost $493,900 and 12 apartments
ten in the hectic rush to provide
providing 44 units to cost $111,300; San Diego, Calif., 49 one-family
dwellings to cost $190,320 and 32 units in two-family dwellings to ,invasion equipment for the armed
cost $102,400; San Francisco, Calif., 147 one-family dwellings to cost forces.
A program which will

to

rolled

tended,

to
preceding
weeks, the upward trend has exceeded expectations.
January total
tonnage output at 7,595,202 tons was the highest since last October.
[During latter

appear

gaps

groups

^Indexes on

somewhat+

slightly less brisk and

The

open

'

tons.
"To prepare

there

steel consumers for

possible price revisions,

has

OPA Ad- buying."

been

tittle

speculative

Volume 159

Number 4254

THE COMMERCIAL & FINANCIAL
CHRONICLE
for the week in each class of
construction are:
sewerage, $573,000; bridges,
$236,000; industrial
commercial building and

Weekly Goal find Coke Production Statistics
The

Solid Fuels Administration

for

629

waterworks, $674,000;

large-scale private housing, $4,525,000;
pub¬
lic buildings,
$7,854,000; earthwork and drainage, $401,000; streets
-and roads,
$1,916,000; and unclassified construction, $5,652,000.

According to the U. S. Bureau of Mines, production of Penn¬
sylvania anthracite for the week ended Jan. 29, 1944 was estimated
at 1,238,000 tons, an increase of
20,000 tons (1.6%) over the pre¬

industrial

New capital for construction
purposes for the week totals
$2,416,a gain of 166% over the total for the
corresponding 1943 week.
This week's new
financing is made up of $916,000 in State and

municipal bond
improvements.

When compared with the output in the corresponding

ESTIMATED
.77,-

■

v

Eiturainous coal

,

UNITED

-.V

7777;
++•+

:

STATES

PRODUCTION

(In Net, Tons)

•

Jan. 29,

Jan. 22,

.

-

OP

COAL

Jan. 30,

"Man. 29,

..

Jan. 30,

Administration

''Subject to

adjustment.

current

7:7''"'''77 F.:'.

■■

ESTIMATED PRODUCTION OP PENNSYLVANIA

;-4(In

,77\;-7,',7.7V ■ :7,?v

••v

Net Tons)
Week Ended—

".

.

§Jan. 29,
Fenn.

-

**T0tal

anthracite—

incl.

coll.

fueU

fiJan. 22,

1944

•

,v

1,238,000

ANTHRACITE

'v-.';

1943

1944

4,689,000

4,443,000

4.501,000

4,265,000

7,040,000

'

:

1,279,300

■'Includes

operations.
revision.

166,600

1,222,100 "5,252,300

washery

and

tExcIudes

dredge

colliery

^Revised.

coal,

fuel.

4

5,199,500
.

,,

167,900

155,400

and

coal

+Comparable

664,100

>

t'

+77+7+

649,400,r

War

for

weeks

552,600

not reflect conditions

shipped by truck from authorized
data not available.
§Subject to

DAILY

(The

are

irom

weekly ..estimates-are based on railroad carloadings and river
ship¬
subject to revision on receipt of
monthly tonnage reports from district

Stated
777-v7'+.r' yy.-.p >77
Alabama—.-ji---. J
i—

:

>7 1944

7

.7

103,000 i
7.7.

,

Georgia and North Carolina—
Illinois;
+.!_+!
•__,.
Indiana-.-

.

——

195,000

550,000
"
54,000

'

lo wa--..-L-

.

Kansas and Missouri

•

'

'

North

6,000
•

;

and

,——.

South

:.

Tennessee
Texas

(bituminous

nite)

,

and

;

34,000

:

7

6,000

.

144,000

-

—

4,000

417,000
7

——.

7

i

2,085,000
104,000

35,000

J27,000

429,000

■7-'77 394,000

77 7',77 7 36,000

2,990,000
982,000.

1,007,000

and

-

\

291,000

29,000
7. 2,538,000

7

3,000,000

7

7

2,085,000
619,000
7

'

1,000

tt

'

Total all coal

12,650,000

••

'

—

1,218,000
13,868,000

•

■

12,750,000
7 .1,147,000

3,601,300
828,300

§828,300

7
.

13,897,000

12,271,000

•

77.77' 907,000
10,477,000

9,570,000

JThis

shutdowns

on the N. & W.; C. & O.;
Virginian; K. & M.; B. C. & G.j
Kanawha, Mason, and Clay counties.
tRest of State, including
the Panhandle District and
Grant, Mineral, and Tucker counties,
tlncludes Arizona,
California, Idaho, Nevada and Oregon. ,jData for Pennsylvania anthracite from
pub¬
lished records of the Bureau of Mines.
tfLess than 1,000 tons.
v.-"7

O.

the net

basic

allowable

includes / shutdowns and
exemptions
several. fields which
were
exempted

'Includes operations
the B. &

is

6,450 !

for

being

required

to

ordered

were

down

In

8

operate

days,

no

to

for

from

definite

shut

leases,

55,300
229,550
16,600

down

3

as

+

best

16,300
89,950

21.050

22,300

■■■

7,350

6,350

100»' .113,000

98,300

24,750

3,588,300

4,500

795,700

765,500

+20,250

4,384,000

3,826,400

—

shown

as

amounts

of

above,

3,060,900

the

represent

condensate

!

-

and

natural

-

are for week ended 7:00 a.m.
of Jan. 1 calculated on a

Jan.

27,

1944.

31-day basis

the
14

dates-during
as

78.200

60,800

91,350

,

1,200

r-'

.

entirely
to

70,200

22,450

'

:;:7—;

allowables,

for

suits

entire

and

month,

of

With

certain

days, the
the month

the

other

entire

state

and

exception

fields

for

ordered

was

*

of

which
shut

being specified; operators.only
operating schedules or labor needed

their

Engineering TofaS 335,523,000 For Week

7:

;

57% lower than the total for the corresponding 1943 week as
reported
to "Engineering News-Record" and made
public on Feb. 3.
The
report continued as follows:
Private construction is 159% higher than

ings,
-

The

week's

brings

1944

volume

to

$214,541,000 for the five, weeks, a decrease of 30% from the $308,622,000
reported for the period in 1943. Private construction, $43,736,000, is
up 69%
compared with last year, but public construction, $170,805,000, is 40% lower due to the 30% decline in State and municipal

Work and the 40% decrease in Federal volume."

tial

District—

.engineering construction volumes for the 1943 week, last
week,'andthe current week are:
Feb. 4,1943 Jan.

-

Total U. S. construction
construction

2_.—Re¬

public construction
State

and

Federal

municipal---—

—

$81,796,000
10,440,000
71,356,000
! 1,354,000
70,002,000

27,1944 Feb. 3,1944
$33,241,000
$35,523,000
7,486,000
19,380,000
25,755,000
16.143,000
3,379,000
1,786,000
22,376,000
14,357,000

classified construction groups,

gains over* last week are
in waterworks, industrial buildings,.and streets and roads.
Increases
over the 1943 week are in bridges, industrial
buildings, commercial
buildings, earthwork and drainage, and streets and roads. Subtotals




an

this

section

est.ifnate

therefore

7;

Rate

Gulf,

Inland

r-.7/'77
.V;-.

OF

% Re-

;:

Crude

Daily

AND.

include

totals

of unreported amounts and
a Bureau of Mines basis

are

on

••

'

at Re-

fStocks

fineries

Finished

Includ.

and Un-

% Op- Natural

—

2,448

fipished

tStocks tStocks
of Gas

of Re-

Oil and

sidual

Utst.ille+e

P"«>!

85.6

6,243

36,531

19,008.

89.5

District No. 2

rnd.,

7

HI..

Ky
Kans., Mo.——

Okla.,

—_

130

83.9

Oil

14,951

77.7

327

1,908

825

142

87.2

54

"114.9

158

1,214

88

790

95.9,

2.831

16,848

5,426

416

80.1

364

87.5

3,144

1,278

7,565

1,611

1,156

21

30

California
Total

U.

8

—:—

S.-—B.

basis Jan.

of

26.9

11

137.5

141

58.3

104

73.8

334

1,653

365

817

;

601

89.9

835

102.2

2,223

15,292

9,922

32,618

86.8

4,359

90.2

13,427

181,085

37,266

52,857

86.8

4,368

90.4

12,945

79,763

38,296

53,431

33

7

■

74

•

M."

29,

1944_

S.—B.
basis Jan. 22,

of M.

Total U.

U.

S:

Bur.' of

basis Jan. 30,
•At

the

1944_

in

pipe

;

1943-

request

lines.

,

of

:

the

Petroleum

3,638

9,978

Administration

10,908,000 barrels.
iAt
§Not including 1,630,000

-88,169

for. War.

refineries,

at

barrels

kerosine,

of

bulk

39,429

'(Finished,
terminals,
4,054,000

gas

oil and distillate fuel oil and 8,889,01)0 barrels'of residual
fuel oil

the

week ended Jan.

70,177,000
in

transit

barrels

produced

29,

71,454

of

during

1944, which compares with 1,711,000 barrels,
4.334.000 barrels
respectively, in the preceding week and
1,265,000. barrels,
7,426,000 barrels, respectively, in the week ended Jan.
30, 1943'.
Notes—Stocks of kerosine at Jan. 29, 1944 amounted to
8,293,000 barrels, as against
3,683,000 barrels a week earlier and 7,405,000 barrels a
year before.
3,

9.041,000

barrels,

696,000 barrels and

District No.

1

marked

liquidate
than

$13,832,005

—

80

126,330

•—

"short

odd-lot

long

a

126,410

.

are

re¬

tSales to offset

•

orders,

are

7

172,160

exempt"
and

position

round lot

a

sales.''

sales

which

is

to

less

reported witii "other

v

inventory indices are: Gasoline, 43.2%
distillate, 89.8%, and residual fuel, 65.9% of normal.

;

r-

Hughes Re-Elected To
Bankers ftss'n Post
The

reelection

of

Joseph

E,

Hughes,. President of the Wash¬
ington Irving Trust Company, of

Port

Chester, N. Y.,

Chairman

as

of

the Board of the New York
State Bankers Retirement
System
was
announced
on
Jan.: 31
by
Albert L. Muench, Secretary. The

system, which is

self-adminis¬

a

tered

trust, is now providing re¬
tirement,
death
and
disabilitybenefits for 904 employees and
officers of 73 banks in New York
and Connecticut.
Other officers
who

elected "

were

Chairman,
President

David

,

of

Company,
Treasurer,

the

Vice-

were

C.

Warner,

Endicott

Endicott,

N.
M.

Adrian

Trust

Y.,

and

Massie,

Vice-President, of the New York
Trust

Company, New York City,';
J.
Marshall,
Assistant
Vice-President, of j;he Bankers
Trust Company, New York City,
Harold

elected

was

and

Assistant

Treasurer,

Mr. Muench, whose appoint¬

ment

as

State

Secretary

of

Bankers

the

New

Association

became effective. Jan. 31, was ad¬
from Assistant Treasurer

to

Secretary.

was

F.

J.

Oehmichen

reelected Assistant

Secretary.

Dr. Fisher Resumes

Duties With A. B. A.
After four months of service
with the Office of Special Advisor
on Liberated areas of the United
State

kerosine, 47.77c;

gas oil

and

Department,

Dr.

Ernest M.

the

Fisher has returned to
American Bankers Associa¬

tion.
Dr. Fisher, who is Deputy
Manager in charge of the A.B.A,
Savings Division and director of
its department of Real Estate and

Mortgage Finance,
advisor

4,831

Mines

barrels;, unfinished,
and

4,831

430,842

——

—

sales———.

customers'

215

85.2

District No. 3——,
—

Short sales

States

101

47
824

Rocky Mountain—
District No, 4

6,830

424,004

7+';"

Appalachian—
1——

sales—,

^

porting Average erated Blended Gasoline Fuel Oil

2,100

16,832

vanced
reported

Louis¬

Texas--

255
'

7; -17,087

sales

York

FINISHED

Production

Runs to Stills

iana-Gulf,
North
Louisiana-Arkansas,
and

and

In. the

-

'Combin'd: East Coast
Texas

STOCKS

;;

Poten¬

Civil

Private

plus
7+■+';+!;7:'-

in

-"S

Daily Refining
Capacity 7

week ago, and 85%

GASOLINE:

GASOLINE. GAS OIL AND DISTILLATE FUEL
FUEL OIL, WEEK ENDED JAN. 29, 1944
(Figures, in Thousands of barrels of 42 Gallons Each)

/.7'''
' '

7'

-

OF

Figures

District No.

construction

PRODUCTION

RESIDUAL

*

V'*':

last year.

current

STILLS;

■■

year ago as a

last week and
if

a

result of increased activity in industrial build¬
Public work, however, is. 37 and 77% lower, respectively, than
a

a

UNFINISHED

v'v

7,7"v!

engineering construction volume for continental U. S. totals
$35,523,000 for the week. This volume, not including construction
^y miliary engineers abroad, American contracts outside the country,
and shipbuilding, is 7% higher than in the
preceding week, but is

above

RUNS

AND

Private Volnnte Tops Las! Week And Year
Ago
Civil

.

total equivalent to 8 days shutdown time
during the calendar
§Recommendation of Conservation Committee of
California Oil Producers. ;

7RUDE

Civil

month.

TO

short

ported with "other sales,"

74,900
'

51,900

150

4,409,450

fOklahomR, Kansas, Nebraska figures

7

1,300

+

795,200

include

+

50 7
+

3,614,250

4,429,600

;

sales—

other

•Sales

339,550

78,950

1,350

7'

113,000

•

...

short

Round-lot Purchases by
•>" 1
:v7,7-7 Dealers—
7.:-. .•'v...
Number of shares,.
:
'

308,800

.

45,650

7+2,300

6,300

recommendations and state
production of crude oil only, and do not
gas derivatives to be produced.

7

11,200,000
1,071,000

V

+

97,050

.110,600'

.

Round-lot Sales by Dealers—
0 Number of Shares:

166,700

--209,900
:
12,950

20,950

•P.A,W.

lig-

—

gPennsy-lvania anthracite

on

7,000
110,600

7

"■'■7;

Sales)

Customers' total sales.—:
Dollar value
;

91,850

12,500

-

nite___

and

23,500

•

Orders:.,

Customers'

'

358,300

100

22,509

:

■

488,716

$19,9Q3,644

_

Number of Shares:

—247,700

+

V7A7; 7"-7-52,900

7777+:
7\'7'77-:

18,381

shares-———.

•Customers'

77,400

+—1,300
•

73,600

Jr-;7'7-77

77.7

7

:

'

7 '7

Total
for Week
—

Customers' total sales--,

280,900

650

,

14,000

7.'77.:
;7

Total United States

168,000

7777"+v7-tt

-

—

650

7^i,_.
—

217,200

,.t

100,000

Mexico

",-—

•

56,000

Total East of Calif.
California

56,000

855,000
192,000

-7

New

J,899,750

357,750

73,900

__-A-A— •77,-i 26,000

1944

Dollar value

Customers'

1,330,900

'
-

Colorado

111,000

7:7.

14,400

Montana

16,000

,

; +.7,7

777:77:: 207,000

■77+,;: 1,0007

;

;7 '7

293,550 V
520,800

77,891
78.300
•7v.7-..+7.; 7 '7- 44.400

111., Ind.,
;

Ky. )

Kentucky
Michigan
Wyoming

510,000

10,000.

143,000

7+.V

'

7 ;v

bituminous

7

ir'j: 209,000

tOther Western States—
Total

7j

•

(Not incl.

68,000

366,200

76,850

,

'

EXCHANGE

201,100
101,600
327,600

:

^

2,539,000 7 H\
138,000 ;

165,000

'

Eastern—•

41,000

:

"Mh

640,000

'

——

'■'

80,000

>7

48,000
215,000

-

'

ODD-

L)EaL-

•Customers' other sales-

136,700

116,400

280,900 ; ;•

368,200

.

THE

by Dealers

Dealers—

88,400

'

140,200

"

-

Sales

(Customers'

2,350

97,900

364,700

1,899,650

•+77;

76,900

Illinois

;•

-

i'" '

-7

343,700

Mississippi

18,000
..

7777
--

Arkansas

Indiana

1

.»

71,000

"77-: 3,000,poo

173,000 7

.1-

lig-

Washington
•West Virginia—Southern-.-;
tWest Virginia—Northern—
Wyoming
1

J

2,990.000

■

'

:

678,000

.

Virginia

:

7

Louisiana-

726,000

.

93,000 7 7

'79,000

689,000

-

-+++';■

Utah

!'

78,000
'

..

Total

'

V

520,800

■

1,892,000 $1,909,526;

North Louisiana—!
"7--77 7
Coastal Louisiana—_

7;166,000
•777
39,000

8,000

40,000

348,000

.

121,000

33,000

;

113,000

39,000

7

Dakota

(lignite)—
-

6,000

7

Texas——-!*

Total

213,000

288,000

>■

7+39,000 f

>7;;7;V:

-

935,000

352,000

109,000

7

■.

Pennsylvania (bituminous )^_.
a

7
.

1,000

I
1

*

116,400 :
366,200
293,550

&

—

STOCK

Number of

291,800

140,200

;

Texas-

FOR

ODD-x-OT

Odd-Lot Purchases by

347,750

".V- 1,350

<

364,600 V;

V

Southwest : Texas
Coastal Texas-

1,352,000
:

Central

East Texas.

107,000

179,000

7:: 1,003,000

-33,000

—_—

lignite)

'V

7

172,000

'349,000
■:7 7

/1,000

-s;-493,000
,7
55,000

55,000

■

-97,900

I

'

Texas—____

East

216,000

7 7

1,340,000

-593,000

-

F~

Texas

OF

SPECIALISTS ON THE

Y.

Number of
'

1943

327,350
2176,800

350

of

odd-lot

—

5,650

+
—

the

(Customers' purchases)
Number of orders—

Jan. 30,

1944.

.

1,000

—

series

Week Ended Jan. 29,

Odd-Lot

Ended

Jan. 29,

t

Week

V

t328,800

.

89,000 '3

1,606,000

"

Kentucky—Western

10hio

-

N.

Week

Ended

ac¬

published

BARRELS)

4 Weeks

Previous

>

269,400
f286,700"
ry —+1,150

1,300

Texas—

West

284,000
77.777 ' 2,000

182,000
7-

1,000

,

-7

980,0007!

Maryland^-_----_--;-i,._-:----.::
Michigan
'
Montana' (bituminous': and
New Mexico—

"7

,185,000

"

Kentucky—Eastern—.

7.

>

198,000

"

.

777

.

1943

7 375,000
i- 7-7+" -' 6,000

83,000

.

;

+ .1,000;
i; ,1.644;000
;

.

7

4,000

v

North

325,000

285,000

.

Nebraska

Jan. 23,
1937

Jan.1:

-

328,000

Kansas

:

Jan. 29,
1944

:

•

Panhandle

Jan.23,

-396.000"

5,000

Arkansas and Oklahoma

Colorado____

>

•

Jan. 15,
7+v>, 1944

403,000

'

Alaska-,

22,:

:

January
Oklahoma

—Week Ended

——

Jan.

4;

.1

C

Begin.;

AND

Total

Change

Ended

stock

The figures

by

TRANSACTIONS
ACCOUNT

ERS

fOther sales
IN

of

odd-lot

continuing a
figures being

Commission

LOT

Actual Production
Week

ables

dations

^

the

all

of

STOCK

'7

(FIGURES

Allow-

..

>

for

dealers and specialists.

v

*P. A. W.

and State sources or of. final annual
returns from the operators.)

>

the

1944.
Daily
1944 averaged 4,384,000

Recommen

current

ments and

figures show¬

volume

based upon reports filed with

are

January,

!

OIL PRODUCTION
•State

(In ner tons) :7 ■'

•

of

Jan.

the East Coast.

on

AVERAGE CRUDE

ESTIMATED WEEKLY PRODUCTION OP
COAL, BY STATES

+77' ;!7v%7+

month

of

'

•

the

ended

,

;

daily

change,

13,427,000

*

'

com¬

gasoline; 1,630,000 barrels of kerosine; 4,054,000 barrels
of distillate fuel
oil, and 8,889,000 barrels of residual fuel oil
during
the week ended Jan.
29, 1944; and had in storage at the end of that
week 81,085,000 barrels of
gasoline; 8,293,000 barrels 1 of kerosine;
37,266,000 barrels of distillate fuel, and
52,857,000 barrels of residual
fuel oil.
The above figures
apply to the country as a whole, and do

7,586,000

1,298,000

7

total—.

1943

.

barrels

Feb. 2,
1929

1,350,000

coke—

States

Jan. 30,

1,169,000

-

United

7.77'_.7.7/7V

Jan. 29,

'■

29,
Further details as
reported by the Institute follow:
Reports received from refining companies indicate that the
in¬
dustry as a whole ran to stills on a BureaU of Mines
basis approxi¬
mately 4,359,000 barrels of crude-oil
daily and produced

COKE

1,218,000

tCommercial production
1,188,000
Byproduct coke—
United States total
,1,276,800

+ -.Beehive

AND

four

barrels.

/+■

——Cal, Year to Date——-

Jan. 30,"

1944

7-

7;

7-/

for

output for the

Exchange

odd-lot dealers and
specialists who handled odd lots
on
the
New
York
Stock
Ex¬

4,409,450 barrels, a gain of 20,250 barrels per day over the
preceding
week, and 583,050 barrels per day more than recorded for the
week
ended Jan. 30, 1943.
The current figure,
however, was 20,150 barrels
less than the
daily average figure recommended by the Petroleum

.

i

count

The American Petroleum Institute
estimates that the daily aver¬
age gross crude oil production for the week ended Jan.
29, 1944 Was

and lignite—'
' ' 1944
1944
1943
1944
'
1943
1937
Total,■Unci, mine fuel* 12,830,000 12,650,000 11,500,000
51,710,000 47,129,000 41,438,000
Daily average -pJ'A2,138,000
2,108,000
1,917,000
2,094,000
1,885,000
1,658,000

.

'

financing for 1944 to date, $149,588,000,
$5,406,000 for the opening five weeks of 1943.

the

transactions

Ended Jan. 29.1944 Increased 20,250 Barrels

-/7

Jan. 30,

v,v,. \

ing

by the Commission.

''b+TA+V• i;7>*;■•■V.,',
V
——-January .1 to Date—■—~

■

—Week Ended

for

Trading

and

Jan. 29 of complete

Daily Average Crude Oil Production For Week

1:

'. V '

loans

Securities

current

The Bureau of Mines also reported that the estimated output of
byproduct coke in the United States for the week ended Jan. 29, 1944
showed a decrease of 2,500 tons when
compared with the production
for the week ended Jan.
22, 1944. The quantity of coke from bee¬
hive ovens decreased
1,300 tons during the same period.
V>: ■;%%;

y..---/'-:;.,'-' '++L

sales, and $1,500,000 in RFC

New construction
pares with

week of 1943 there
was, however, a decrease of 114,000 tons or 8.4%.
The calendar year to date shows an increase of
5.5% yvhen compared
with the same period of 1943.
V

i i;

The

Commission made public on Feb.
5 a summary for the week
ended

000,

■

ceding week.

i

HYSE Odd-Lot

buildings, $13,692,000;

War, U. S. Department of
the Interior, in its latest
report, states that the total production of
soft coal in the week ended Jan.
29, 1944 is estimated at 12,830,000
net tons, an increase of
180,000 tons, or 1.4% over the preceding
week.
Output in the corresponding week of 1943 amounted to
11,500,000 tons. Total production for the current year to date is 9.7%
in excess of that for the same
period last year.
*
:

011

particular

was

liberated

respect

a

special

areas

to

the

with
low

countries, including The Nether¬
lands,

Belgium

An item

and

bearing

Luxemburg.

on

the leave of

absence granted to Dr. Fisher
by
the A.B.A. to permit him to serve

temporarily in the State Depart¬
ment

post, appeared in

of Oct.

7, 1943

our

page 1428.

issue

stable

vegetables, food prices at the wholesale level "were fairly
during the week.
Wheat flour advanced fractionally. On the aver¬
age, prices of foods in primary markets are 0.4% lower than at
end of December and 0.3% below the last week in January, 1943.

Trading On New York Exchanges

Commission made public on

"Industrial

week of January.
sheepskins caused
average prices for hides and leather products to drop fractionally.
A further decline was reported in prices for quicksilver. An increase
of 50 cents a ton granted by OPA to Eastern producers of retort coke
to cover increased production costs brought the index for fuel and
lighting materials up 0.4%.
Paint materials, such as butyl acetate,
rosin, and turpentine, advanced substantially.
In the lumber in¬
dustry, minor increases were reported in prices for Ponderosa pine
boards, while sugar pine and Idaho pine declined."
The Department's announcement contains the following notation:
"During the period of rapid changes caused by price controls,

totaled 1,847,053 shares, which amount was 18.55%
the Exchange of 4,977,890 shares. This

total transactions on

of the

with member trading during the week ended Jan. 8 of
1,775,526 shares, or 18.56% of total trading of 4,781,880 shares.
the New York Curb Exchange, member trading during the week
ended Jan. 15 amounted to 368,750 shares, or 14.87% of the total
volume on that exchange of 1,239,985 shares; during the Jan. 8 week
compares

On

Total

x

Total Round-Lot

A.

+

xx.'

Sales:

■"'■v.,1;.;

XV

XX'X

Short sales

tOi.her sales

.-J-

-

Total sales

registered—

Short sales
■

•

,

purchases

Total

lOther sales

Commodity

VV VYr

•

Total sales

Total

I

purchases-—

'

t Other sales„__

V

Totalsales

V

■

X
off the floor—

>

-

jOther

1944

.;■>

\

*103.1

'

'

6.35

r

7

JOther sales

,

/

3.52

j

v
.

122.1

104.8

105.1

117.9

117.9

118.4

82.7

82.6

80.1

*103.8

*103.9

103.9

113.4

113.5

;

v

.

100.4

100.4

100.3

104.4

104.4

104.1

—

0.1

—0.4

+

0.1

+ 0.6

Straits quality

0.1

o

90.5

93.0

93.0
112,3

93.1

93.1

93.1

93.1

*100.4

*100.4

*100.4

*100.3

*99.0

*98.9

*98.9

*98.9

98.4%+0.1

*98.0

*97.9

*97,9

*97.8

96.3

0.4
0

o

92.5
'

+ 0.1

Feb.

+0.1

0.1

+
+

Feb.

2

PERCENTAGE
.

v

1.8

and Stock

York Curb Exchange
Members* (Shares)

Livestock and poultry—

vo;+

.

Fruits and

1944

WEEK ENDED JANUARY 15,

VVo

Total for Week

.

+

JAN. 29, 1944 •

Total Round-Lot Sales:

A.

Hides and skins_

'

13,515
1,226,470

Short sales———

JOther sales

-

Totalsales—
B.

—i.

.

for
the
Account
of
vXv'X-'/XX. ;
;Xx'XXV
Transactions of specialists in stocks in which
Transactions

Round-Lot.
Members:
1.

registered—
Total purchases—

they
.

are

—-

98,640

-

purchases-.

:

2,360

23,835

3.

,

V

2.18

Other transactions initiated off the floor—.
Short sales——

55,585

__

Total

'v;"'----

10,710

-

183,080

$Other sales—

.

"

price of tin was increased in the
United Kingdom,
effective Jan.

,

1,
Odd-Lot

the

Transactions for

14.87

193,790

Totalsales———
C.

"■ ;.

Account of Special-

;
0
48,468

-——J

§ Customers' other sales

absorb

to

British

,

ists—

Customers'short salesJ,

on

voking

4.12

lo'--.:"vV
VX.X, ■
.'XVX.X +
purchases—174,960

Short sales_—

restrictions

all

consumption of quicksilver by re¬
controls imposed under
Conservation Order M-78.
The

.

56,110

Total sales—

week. It now appears that

'

higher

Thg

costs.

quotation now is slightly
price. fixed in this

country." The publication
went on to say in part:

further

48,468
—------————-

:

35.395

•

Mining Congress, in Denver. R. J.

mated

from

"short

exempt"

are

With

allocation

the hands

civilian

essential

in
vol¬

certificates

of consumers, the

in zinc increased
However, the indus¬

WfsoSesaie Commodity Index

Advanced 0.1 %
During Week Ended Jan. 29 Says Labor Dept.

week.

Trilsch, assistant director of the
Zinc
Division,
WPB,
informed
members of th<f American Mining

and the situation is described
as
easier, production here con¬
tinues at a high rate.
WPB offi¬
cials believe that the supply of Congress.

Censorship
regula¬
available in this tions, he said, prevent the divulcountry during 1944 will be lar¬ gence of any detailed informa¬
tion on either import or export
Higher prices for livestock, fruits and vegetables were largely ger than that of 1943.
f J"'"
F. H. Hayes, acting chief of the statistics.
responsible for a rise of 0.1% in the Bureau of Labor Statistics'
Aluminum
index of commodity prices in primary markets during the week primary production branch of the
Curtailment in aluminum' pro¬
Division, revealed that
ended Jan. 29, according to the advices Feb. 3 from the U. S. De¬ Copper
duction this year may not'be as
partment of Labor, which stated that the advance brought the all- the supply of refined copper in
commodity index to 103.1% of the 1926 average, slightly above the 1943 amounted to 1,828,000 tons, great as earlier reports indicated.
level at the end of 1943 and 1.3% over the corresponding week of of which total 1,124,000 tons was Three more production, lines, at
obtained from domestic ores (in¬ or near Masseng, N. Y., were
last year.
;,
cluding Cuba), 90,000 tons from ordered closed down during the
The Department further states:
scrap, and 614,000 tons from for¬ last week, bringing the number

products
in primary markets rose 0.6% during the week to the highest point
reached since early last November.
Advancing prices for cattle
and hogs, for cotton and rye, for citrus fruits and onions, and for
apples and potatoes in the Chicago market accounted for most of
"Farm

Products and

the increase.

Quotations

Foods—Average prices for farm

were

lower for eggs, except in San

Fran¬

cisco, and for apples and potatoes in certain Eastern markets.
"Aside from the increase of 1.1% in prices for fresh fruits and




new

However, all
of the lines closed so far are in

of shutdowns to 15.

Lead
Turn

-

of

-

the

-

.

.'

month business
percentage of

accounted for a fair

the

use

in

indus-"

This

not

does

"several

take

into

account'

the

potential major

uses

on

horizon," he added.

Silver

and

quotations

New

York,

in

London

unchanged

were

last week.

^

Daily Prices
The

daily prices of electrolytic>

copper

(domestic and export

were

re¬

lead, zinc and Straits tin

finery)

unchanged from

those ap¬

pearing in the "Commercial and

copper

eign sources.

/the

war

tries during 1944, Mr. Luncl, said:

included with "other sales."

.

and

of buying

Consumers asked

per,

54,000

to

year

re¬

at the

twelve-months' per¬

the

in

were

flasks

90,000

of the-

beginning
later

1943

for

needs

duced

„

stated that esti¬

Lund, of WPB,

.

§Sales marked

meeting

a

Treasury "free" silver for,

for additional try believes that current produc¬
tion is not being absorbed and a
*The term "members" includes all regular and associate Exchange members, their
tonnages of February copper dur¬
fair tonnage will be available for
firms and their partners, including special partners.
ing the last week, indicating that
tin calculating these percentages the tofal of members' purchases and sales is
the reserve supply.
consumption this month will be
compared with twice the total round-lot volume on the Exchange for the reason that
the Exchange volume includes only sales.
Imports novY account for a sub¬
larger
than
estimated.
Even
IRound-lot short sales which are exempted from restriction by the Commission's
though
the
British authorities stantial proportion of the total
rules are included with "other sales."
concentrate supply* M. L.
have curtailed purchases of cop¬ zinc
Total sales——

at

previous.

Zinc

last

Copper

quicksilver was^
of the

of

position

discussed

quirements

the

above

basis, for February-March metal.
The

iod.
■
i
/;•
"
>
February re¬ vSilver
+X{v
of consumers
are
Should imports of silver con- *
more
than 75%-covered, accord¬
curtailed
ing to trade estimates. Consump¬ tinue at the present
tion of lead at present is not quite
rate, there will be need for some
up
to the peak level attained
50,000,000
to
75,000,000 oz, of
during the last quarter of 1943.

the week

ume

Total purchases

Metals Reserve

have to release some

removed

has

525

.

{Other sales

Total—

-'XX'

46,190

Total purchases—!,

4.

'

on

additional tonnages. Demand for zinc dur¬
ing the last week improved, following receipt of regular allocation
certificates.
The situation in lead remains unchanged.
Quicksilver
prices steadied on reduced selling^
8,182. tons, against 5,461 tons in
pressure from producers. ■ WPB

may

XXV:XV'V

21,475 -

,

Total sales—

Markets," in its .issue of Feb. 3,
consumption of copper for February

and Mineral

"Earlier estimates
revised upward last

stated:
were

30,130

.

fOther sales

"E. & M. J. Metal

.

.

•

•.

- -

8.57

113,845

—-

Meeds For Feb.
jiiereased-Quicksiiver Restrictions Lifted

X

106,020
'

—

*

per

NoD-Ferroits flefais-Goppsr

7,825

_

Other transactions initiated on the floor—

i

.

„

Total sales-

Short sales

,

f

lOther sales

Total

"

Decreases
'
0.6 Grains —
Nonferrous metals
0.3

;

Other foods :

1,239,985
;
'
"
X;.;.yx':'XV+ x:X Xx;X'X:• V'X XV. x.

.

Short sales

2.

:

quicksilver as having .stead¬

flask, New York, for spot and
near-by metal, or $5 higher than <
a week ago. However, on quantity
business, $130 per flask was done
0.1 throughout the last week, leav¬
0.1
ing New York quotations prac¬
tically unchanged.
Pacific Coast
sellers quote $125 per flask, coast

vegetables———1.1

K:

'

ied, following the uninterrupted
drop in prices that occurred since
the first
of
the year.
In fact,
some
sellers
wqre
asking $135

4.6 Other farm products—
— 0.5
Paint and paint materials_i—--------—+>--1
Lumber
—0,1

Coke *

'

continued"

Quicksilver

Increases

Total Round-Lot Stock Sales on the New
Transactions for Account of

52.000

Most sellers viewed the market

INDEXES; FROM

CHANGES IN SUBGROUP

52.000

•

52.000

Chinese, or 99% tin,

for

JAN. 22, 1944 TO

.;

52.000
52.000
52.000
52.000

52.000

52.000

at 51.125c. all week.

^Preliminary,

18.55

52.000

52.000

:

0.6

+ 0.2

+

52.000

.52.000

52.000

l__Av

0.1

'

-52.000

52.000

Jan. 31

0.6

+

_!'+

Jan. -29

4.1

0

+ 0.4

27-._—

Jan.

2.8

April

March

Feb.

52.000

52.000

Jan!

0.3

o

108.3

follows, in cents a pound:

0.9

0.1
b

112.3

metal was nominally as

Forward

3.1

X+OX.
+

0
.

tin in the United,
at 52c.v

continues

market

States

3.7

0 -V

.

93.0

other than
U
—
other than
products and foods

contend.

0.5

—0,1

0

,

112.3

100.3

ties here

authori¬

developments,

0.4

■r-0

o

+0.4

:

93.0

.

political

0.3

—0.1

+

re¬

affected by the

been

not

•

•

Production of

unchanged.

has

tin

%%
in Bolivia

•

situation

4.2

112.7

commodities——

marker

1.3

0,4

99.5

104.4

100.4
104.4

goods

0.1

+

110.1

113.4'

113.5

—

products
commodities

farm

vXXVX

82.8

1-30
1943

1-1
1944
+

96.8

97.2

97.2

97.2

higher

,

0.1

•

*103.8

•

The British sell¬
tin now is slightly
the United States

of
than

The

—0.1

105.0

117.9

121.9

commodities

farm

-Vxx+-VV-'

X

122.1

104.6

117.8

122.6

'

the Ministry, it was

to

price

ing

,

+0.6

+
•

117.7

materials

All

•

.

;...915,401

Total Sales—

101.8

products—

Semimanufactured articles——
Manufactured products^.——

-—

Short sales.;

materials

Miscellaneous
Raw

_1_.
;
931,652
—U—1— XXxY 78,460
836,941

purchases-

Total

*103.0

97.2

Rousefurnishing

All

.

*103.0

products—

Chemicals and allied

,

184,941;

>

—

.

.

*103.0

and

Building

•

12,550

Total sales—

1944

1944

104.7

leather

available

stated officially.

mains

' 1-22

products
83.1
lighting materials
*103.8
Metals and metal products——

sales———172,391

Total—

4.

1-30
1943

Textile

Fuel

165,702

Total purchases
Short sales.:
.

14,300

304,030
'

——-——

Other transactions initiated

3.

'
'X.X VVX
XXVxXxxxX.Xxxx.V
•

289,730

:

—i—

'V

8.68
'

328,620-;.

Short sales

%

J

426,430

i

.

,

1-1

1944

—

and

Rides

'

u

1-15

—:————

products

Farm

the floor—

Other transactions initiated on

2.

1943, may cover up to and includ¬
ing Jan. 8, 1944. Ther advance
takes account of the present and

Jan. 29, 1944 from—

1944

Groups-

commodities

All

Fcods

•

licenses
Dec. 31,

1944,, but
holders
of
granted nn or before,

Percentage changes to

\

-

1-22

1-29

374,820

-

,

-

t

,

/

51,610 v </ ;

,

>,

.

.

437,330

___

£300.

1941, according to the Metal Bul¬
letin, London.
The new quota¬
tion became effective on Jan. 1,

1944

WEEK ENDED JAN. 29,
(1926=100) : •
V. \ :

FOR

PRICES

WHOLESALE
'

\ *

Jan. 29, 1944.

r

,

——
—

indexes from Jan. 22 to

'

.V. V'

Other grades
have been raised correspondingly.
This is the first price change in
any
of the base metals in the
British
market since December

Jan. 1, 1944
week ago, a
percentage changes in subgroup

and (2)

month ago, and a year ago

"X:■

,

Con¬

establishing

tin £25 per ton,

99%

the market at

of commodities for the past three weeks, for
and Jan. 30, 1943, and the percentage changes from a

*

„

Metal

Britain has ad¬
base price of minimum

Great

vanced its

. >
.' j
the principal

-

index numbers for

groups

r-

-

'

5

•

following tables show (1)

The

4,977,890

—

Transactions for Account of MemExcept for the Odd-Lot Accounts of OddLot Dealers and Specialists:
•
.
1. Transactions of specialists in stocks in which
hers,

they are

'

reports."

J

4,848,570

..

Round-Lot

B.

Round-Lot Stock

'/;,
' Total-for Week
?''• t% v
'•'
; X X X-'V■ '"%:V
1129,320
/+,%•;

'

Tin

■

the Bureau of Labor Statistics
report changing prices,; Indexes marked
(*), however, must be considered as preliminary and subject to anticipated level of costs of sup¬
such adjustment and revision as required by later and more complete
plies from the different sources

1944

WEEK ENDED JANUARY 15,

'

Non-Ferrous

of

trol

attempt promptly to

will

■

Sales on the New York Stock Exchange and
Transactions for Account of Members'* (Shares)

Round-Lot Slock

■v>

and rationing,

allocation

materials

16.10%

of 337,720 shares was

trading for the account of Curb members
of total trading of 1,049,135 shares.

industrial com¬

Commodities—With few exceptions,

modity markets continued steady during the last
A decline of nearly 3% in prices for shearing

a

lot transactions)

vision, WPB,

The

Di¬

Magnesium
stated Jan. 30.

and

Aluminum

the

Jan. 29
figures showing the volume of total. round-lot stock sales on the
New York Stock Exchange and" the New York Curb Exchange and
the volume of round-lot stock transactions for the account of all
members of these exchanges in the week ended Jan. 15, continuing
series of current figures being published weekly by the Commission
Short sales are shown separately from other sales in these figures.
Trading on the Stock Exchange for the "account of members
(except odd-lot dealers) during the week ended Jan. 5 (in roundExchange

The Securities and

1944

Thursday, February 10,

CHRONICLE

& FINANCIAL

THE COMMERCIAL

630

tonnage
last

seven-day

of lead sold during
Sales for the

week.

period

amounted

the East and

South, where power
coal. The

is generated with scarce

the present
production about 14%.

cutbacks made up to
will lower

to! Philip D.

Wilson, head of the

Financial

Chronicle"

of

July 3L

1942, page 330.

Adams Named Art Direct*
For War Finance

Corp.

George C. Adams has been

a]

pointed Art Director for the W,
Finance

Division

States Treasury

of

the

Unit<

Department.

F

the past eight years he has bet

associated

with

the

Thompson Company.
assumed his

ington

on

new

J.

Walt

Mr. Adar

duties in Was]

February 7.

Volume

159

Number 4254

THE COMMERCIAL &
FINANCIAL CHRONICLE

Revenue Freight Oar Loadings During Week
;
Ended Jan, 20,1044 Increased 12,340 Gars
Loading-of
totaled',: 811,062

Total Loads

Railroads
c

..

Southern

Total Revenue

314

Atlanta, Birmingham & Coast

in¬

v-:;

:

u
Loading
102,690 cars,

merchandise less than carload lot freight totaled
increase of 1,681 cars above the preceding week, and
increase of 14,075 cars above the corresponding week in 1943.

an

.'

of

an

Coal loading amounted to 183,813
cars, an increase of 3,648 cars
above the preceding week, and an increase of
15,924 cars above the
/

•corresponding week in 1943.
Grain and grain

products loading totaled 55,815 cars a decrease
of 3,042 cars below the
preceding week but an increase of 5,891 cars
above the corresponding week in 1943.
In the Western Districts
alone, grain and grain products loading for the week of Jan. 29,
totaled 38,735 cars, a decrease of 2,916 cars below the
preceding week
but

increase of 5,135 cars above the
corresponding week in

an

Live

stock

loading amounted to

15,233

below the preceding week, but an

cars

the

corresponding

week

in

1943.

loading of live stock for the
decrease of 708

below

cars

the

decrease of 931

a

increase of 1,972 cars above
the Western Districts alone

In

week of

cars,

Jan/29, totaled 10,738

preceding week, but

44,5185>cars,

cars,

a

increase of

an

1,130 cars above the corresponding week in 1943.
•V-Forest products loading totaled

1943.

•

.

increase of 1,153

an

Ore
.

loading amounted

above the

to

15,154 cars,

preceding week and

corresponding week in 1943.
above

the

of

.

-

Coke loading amounted

increase

an

to

612

of

cars

above

cars

of

680

above

cars

1,412

12,916

12,926

11,318

3,754

4 605

6,619

4,494

430

416

400

1,840

1,607

i)6i8

1,669

1.695

3,618

2,737

320

335

276

260

production

194

342

312

Jan. 29,

1,344

1,814

43

1,689

33

42

126

92

1,051

1,291

1,571

2,562

3.049

reported

the

decreases

corresponding

compared

with

except the Pocahontas, Centralwestern, and Southwestern.

25 806

23 299

& Savannah

S6!?7,!11!' Cih,attano°Sa
Norfolk Southern

January
I,.
January
8_.
January 15—
Week of January 22—
Week of January 29„
Week of

1943

1942

621,173
717,176

676,534

762,999

of

736,972

780,220

755,498

798,722

703,294

818,081

811,062

734,670

815,565

.811,327

3,796,477

3,531,811

summary of the

3,858,479

freight carloadings for

the separate railroads and systems for the week ended
Jan. 29, 1944.

During the period 102 roads showed increases

when

2,887

3,726

4,827

4,829

1,695

1,538

FREIGHT

AND

(number of cars)

.

-•.■<'

LOADED

RECEIVED

week

ended

jan.

1,689

1,097

476

12,638

9,748

10,223

9,143

25,255

26,775

24,469

332

616

913

936

137

96

128

914

1.050

127,037

U7.419

128,046

130,527

120,319

Eastern

29

..."

.

1944

1943

Bangor & Aroostook

I.¬

Boston & Maine

■

■

31

Central Vermont

1943

1,296

296

153

%

8,924

15,436

14,542

1,470

•

1,400

Central Indiana

1944

1,562

.'

1,884

5,790
1,410

Connections

668

,2.548

Chicago, Indianapolis & Louisville.

2,470

2,102

35

/:•:/

38

57

•

3,532

3,031

9,756

40.0%

4,124

1,305

Erie_L——_

488

10,706

372

467

120

86

12,548

9,795

J2.170

'5,007

4,350

520

479

616

309 .>

59

43

2,675

2,376

2,034

4,484

5,984

3,614

2,963

Northern Pacific——

10,541

,

Lehigh & Hudson River

——

Lehigh & New England
Lehigh Valley

10,665

5,151

4,108

Total

;

42

99

739

2,434

,2,921

2,778

96,867

66,656

57,917

89,795

District—

77,517

22,128

19,349

22,665

13,664

10,787

3,066

3,183

3,420

4,004

4,312

...—

466

700

565

119

116

21,027

17,966

18,427

12,378

10,867

2,891

2,759

3,066

962

902

12,052

Chicago, Burlington & Quincy
Chicago & Illinois Midland
Chicago, Rock Island & Pacific
Chicago & Eastern Illinois..

11,166

12^724

13,124

12,389

3,049

...

2,285

2,901

5,726

5,481

769

764

780

2,030

1,915

3,565

3,684

3,260

6,223

4,799

875

City

802

749

4

1,007

Missouri-Illinois

1,069

1,194

1,564

1.960

2,030

6

1,750

2,317

Illinois Terminal

"

1,442

the

District Court decision.

0

21,937

27,114

14,679

12,262

400

304

1,921

1,533

13,989

16,050

17,010

12,529

679

635

1,605

Western Pacific

1,561

726-

11

5

3,295

1,926

3,717

125,502

106,937

121,701

100.427

85,295

306

683

189

380

212

i?;l 7,041
1,953

6,588

5,335

2,311

2,153

3,308

2,194

4.200

3,415

Gulf Coast Lines.

—

Kansas, Oklahoma & Gulf
Kansas City Southern
Louisiana & Arkansas..

260

278

373

1,110

1,057

5,006

5,327

3,201

2,544

3,414

....

3,208

2,622

2,609

2,411
2,126

286

270

408

1,325

1,167

_.

726

583

518

484

■;

247

117

196

504

414

5,400

...6,016

5,143

5,424

5,920

17,621

15,701

17,301

20,518

17,480

—

Litchfield & Madison
Midland Valley.
Missouri & Arkansas

Missouri-Kansas-Texas Lines
Missouri Pacific

.m—;

Quanah Acme & Pacific

212

5,020

7,447

7,481

207

3,737
1,426

1,553

Maine Central—.:.

2,525 :•

_—

<:s

5,955

.

'2,643

—

New- York Central Lines

v

,

N. Y.. N. H. & Hartford

48,451

New York, Ontario & Western-—

2,093

15

V;:

891

1,023

2,739

17,677

8,287

8,280

8,019

4,748

6,148

8,742

7,478

899

715

584

33

14

333

575

383

335

443

933

2,633

923

385

2,580

Wheeling & Lake Erie

553

880

1,045

6,094

13,350

12,513

4,853

4,840

4,631

161,135

151,804

172,850

251,834

224,362

Akron, Canton & Youngstown

798

Baltimore & Ohio——
Buffalo Creek & Gauley
Cambria & Indiana

43,097

36,234

.

^

;———

'

1,902

1,714

:

37

34

69,381

65,363

71,092

63,148

236

1,897

6

LlgonieV Valley-—
Long Island—
———

19,907
71

21,773

693

50

314

12

dustry, and its
the

figures

program

includes

statement each week from each

a

advanced to equal, 100%,

are

on

so

the

a

time

operated.

Period

-;7

Nov.
Nov.

3,082* Nov,

1,316

1,754

2,700

2,236

71.832

81,744

67,120
31,047

57,746
28,352

Dec.

These

25

13,556

16,643

20,288

20.849'

3,437

160,609

4,593

5,041

4,102

14,519

13,364

180,823

176,603

160,511

:

25,345

24.581

12,150

.10,425

22,818

21,234

21,209

7,606

Dec.

Remaining
Tons

4,424

4,125

1,484

1,874

....56,991

51,003

49,915

21,240

18,944

bad

and

which, with £661,123 brought

which

tions

the

following

amounting

to

appropria¬
£1,356,345

15,

1943, for the

126,726
134,959
177,664

11—

the
93

149,295

608,893

95

93
93

146,286

587,715

94

93

'142,136

578,434

91

93

149,803

602,789

95

600,323

96

93

148,431

589,659

96

93

119,487

—

,——

136,120

569,689

87

93

..

.

1—_

121,212

92,328

589,815

63

93

Jan..

8_;

160,567

138,381

612,043

86

86

153,097

93

90

93

91

95

92

151.22—

29.

—„

131,940

146,596
140,457

614,215
602,930

——

145,735

147,423

597,011

Notes—Unfilled orders of the prior week,
not

£1 share capital paid up) less

of

8%

income tax,

actual

(Is.

£606,345; to

7Vsd.

fund, £500,000; to

reserve

reserve

for fu¬

ture

contingencies, £ 250,000; leav¬

ing

a

of

sum

£1,289,174

from

which the directors recommend

Jan.

Jan.

rate

per

93

148,826

139.654

—

half-year ended June 30, 1943, at

Current Cumulative

608,782

1944—

6,645

4,699

-

all

the net profit for

forward, makes £2,645,519, out of

dend, paid July

Percent of Activity

146,662

— —

—

Dec.- .4————

Jan.

29,474

ACTIVITY

.147,467

153,126

—

18—

Dec.

—

20—

27

J&n.




Tons

172,441

-

13--—

56

3,818

District—

—.,

Orders

Tone

6-

143

177,896

Chesapeake & Ohio—

Virginian

Production

Received

1943—Week Ended
Nov.

923

4,294

for

made

Unfilled

125

14,787

1-

Norfolk & Western-

REPORTS—OP.DERS, PRODUCTION. MILL
Orders

1,009

19,812

—

Midland

the year 1943 amounts to £1,984,-

figure which indi¬

that they represent the total

•

—

the

of

have been made: To interim divi¬

1,651

Maryland—.————

been

doubtful debts,

396

production, and also

activity of the mill based

STATISTICAL

52

:

Directors

,

member of the orders and

161

79,240

lidSand Bank Ltd.

has

1,480

Fenn-Reading Seashore LinesPennsylvania System—-.

for competency or a license
practice, and there are editors
long experience and trained
judgment who, agreeing that The
proper study of mankind is man,'
likewise believe the only prac¬
tical school of journalism is the
newspaper office.
"The publisher of a newspaper
has no special immunity from the
application of Federal laws."
to

The

The members of this Association represent 83% of the total in¬

7

: i'..:

8,027

204

tion

of

Paperboard Association, Chicago, 111., in relation to activity in the

4

465

'

re¬

examina¬

an

Of London Profits

"Previous week's, figures.

1,873

*3

6,285

624

that

State

no

quires of (reporters)

29

'

6,567
-

Cumberland & Pennsylvania—-.

Labor

Fair

paperboard industry.

27,595

1,654

361

"272: "':

the

Bank, Ltd., report that, after ap¬
propriation
to
contingency
ac¬
counts, out of which full provision

1,174

27,949

3,141

385

1,303

39,499

3,046

.

Central R. R. of New Jersey-—-.

Total——

728

2,975

_

Bessemer & Lake Erie

Reading Co.——_—*

713

of
Act.

29

24

industry.

Allegheny District-

Cornwall—;

64

We give herewith latest figures received by us from the National

cates
—

Standard

For The Year 1043

6,214

:

118

3,583

303
5,689

4,932

.

%

Weekly Statistics Of Paperboard industry

1,581

6,567

.

Note—Previous year's figures revised.

191

v

1,166

•——:—■-——

72,706

Total

15,566

7,220
•V 449

7,900

—

27

2,872

6,501

637

Pittsburg & Sliawmut
—;
Pittsburg, Shawmut & North
Pittsburgh & West Virginia——

Weatherford M. W, & N. W

16,899

4,609

„

82

54,520

20,431

981

N. Y., Susquehanna & Western
Pittsburgh & Lake Erie
Pere Marquette
;

4,152

73

26

59,135

12,708

6,706

New York, Chicago & St. Louis

5,200

/

416

48,637 /

8,375

reporters were professional
employes and thus removed from

4,031

309

Texas & Pacific

Wichita Falls & Southern

11,338

4,820

6,201/.

44,945

,

16,766

3,511
-■

2,636
,

10,118

—

9,496

2,588

;V

6,516

Montour

...

2,650

1,634

149

a

"Judge Simons wrote:

5,453

i,776

from

paper

"We know of
...

6,730

8,095

appeal

"The company contended be¬
fore the lower tribunal that news¬

District—

8,226

9,153

publisher's

operation

11,241

10,029

opinion, by Judge Charles
of Detroit, overruled

Simons

106

12,916

5,289

172

—.

"The

C.

529

17,511

—'

vices from Cincinnati (Associated
from which he
quoted,
further stated:

0

154

20,666

Pub¬

Press)

147

6,220

14,548

Sun

publisher
of
(Tenn.) Sun.
Ad¬

"798

7,648

113

the

21

248

2,019

against

883

595

....

the

Company,

Jackson

1,906

6,553

:

The

37

9,884

2,858

Labor

534

3,191

3,545

of

lishing

1,653

16,224

CJnion Pacific System
-Utah
.i.

con¬

24 upheld an order of the
WageHour Division of the Department

29,676

Southern Pacific (Pacific)...

a

reporters

workers,

16

Texas & New Orleans

120

"professional"

are

719

496

10,696

1,920

denying

newspaper

1,821

Vorth Western Pacific..

552

139

3,921

that

1,060

9,442

237

opinion

an

900

■

109

•;

In

tention

1,102
.

2,985

12,185

Reporters Subject To
Wage-Hour Lavr-

955

Nevada Northern

were

greater.

Sixth United States Circuit Court
of Appeals at Cincinnati on Jan.

■/'"-v.

V

Uch., Top. & Santa Fe System

was
were

Circuit Court Rules

353

1,335

8,709

301

3,694

.

Monongahela

Total

8,034 i

«

119

2,818

—

Pocahontas

,

112

2,231

& Seattle

8,843

'

(Pittsburgh)

832

341

1,765

5,690

.

3,268

1,891

12,466

——

Grand Trunk Western

Western

903

265

2,346

...

.

Minn., St. Paul & S. S. M

cor¬

pro¬

250

583

10,627

3t. Louis-San Francisco

303

-

-

'

Union

267

790

10,260

St. Louis Southwestern

267

Detroit, Toledo & Ironton

Total-

1,129

659

8,932

2,205

2,198

Detroit & Mackinac
Detroit & Toledo Shore Line—-—

Wabash——-.

1,266

701

437

Ishpeming.

Minneapolis & St. Louis

ex¬

3,318

11,148

11,034

average

11,598

2,368

9,057

the

2,925

13,451

<

Compared to

4,583

1,184

7,603

mills

5.2%; orders

by 11.2%.

23^258

12,821

5.927

7,593

shipments

identical

2,546

15,035

6,506

5,691

—-

reporting

ceeded production by

3,837

18,471

912

Delaware & Hudson

Delaware, Lackawanna & Western

Rutland

1942

268

-

For the year to date,
of

19!o55

14,651

8,781

Ft. Dodge, Des Moines &
South
Great Northern
Green Bay & Western..

Total

current

2,702

International-Great Northern

Received from

the

3,842

filgin, Joliet & Eastern

Fort Worth & Denver

at

21,847

Chicago^ Milw., St. P. & Pac
Chicago, St. Paul, Minn. & Omaha
Duluth, Missabe & Iron Range
Duluth, South Shore & Atlantic

Western

production

responding week of 1935-39,
duction of reporting mills
-37.9%
greater;
shipments
50.2% greater; and orders

15,883

Burlington-Rock Island

Total Revenue

District—

21,154'

District—

Chicago & North Western
^lncago Great Western

Spokane, Portland

days'

rate, and gross stocks are equiva¬
lent to 33 days' production.

CONNECTIONS

Freight Loaded ••?''**
Ann Arbor-.

514

628

,

compared with

Total Loads

Railroads

,

1

11,121

Winston-Salem Southbound

Southwestern
FROM

ips

339
302

Tennessee Central

the corresponding week a year ago.
REVENUE

For reporting softwood
mills, un¬
filled orders are equivalent to 38

427

' 10,181

Toledo, Peoria & Western
a

10,893

452

Total

reporting

12,431

21I

-

10,944
23,758

i.
—

were

9.2% greater than production. Un¬
filled order files of the
mills amounted to 104% of stocks.

904

& Potomac

Seaboard Air Line...
Southern System..

mills

5,401

611

435

week

these

of

19,072

928

•

ended

same

4,196

168

i

1."..

week

17,385

3,328

& St- L

orders

new

the

In the

4,623

171

Peoria & Pekin Union

Total

519

for

1944.

94 447

'

igi

Piedmont Northern.:

\lton

819

Association,

29,714

225

Mississippi Central...

Central

467

f.

3,452
26,882

Colorado & Southern

643,474

Week of

following table is

356

4,005

—29,322

....

Denver & Rio Grande Western
Denver & Salt Lake
;

1944

The

V

452

Illinois Central System

Northwestern

Manufacturers

91

Louisville & Nashville

Richmond, Fred.

ber

lumber shipments of .473 mills re¬
porting to the National Lumber
Trade Barometer were 5.2% above

2,966

105

-

Macon, Dublin

According to the National Lum¬

393

14,472

Bingham & Garfield

All districts reported increases
compared with the
in 1943, but all districts

Week

1,464

•

Ended Jan. 29, 1944

—3,387

Georgia.
Georgia & Florida
Gulf, Mobile & Ohio

cars

corresponding week in 1943.

1942

784

1943

420

299

Durham & Southern...
Florida East Coast.

the

increase of 460

an

increase

an

week

637.

1 '■

1944

3,988

—.—

Spokane International

791

2,930

-

15,870 cars,

preceding week, and

increase

an

2,476

3942

13.601

Charleston & Western CarolinaClinchfield

Lake Superior &

;cars above the
preceding week and an increase of 11,904 cars above
the corresponding week in 1943. v

958

784
~

Gainesville Midland

Miscellaneous freight loading totaled 375,969 cars, an increase of
.8,580 cars above the preceding week, and an increase of 25,334 cars
.above the corresponding week in 1943.

4ir

661

J

....

Loading of revenue freight for the week of January 29,
creased 12,340 cars, or 1.5% above the preceding week.

3S1

794

•

Columbus & Greenville

0.6%.

cars or

1943

Atl. &W. P.—W. R. R. of
Ala.,

Atlantic Coast Line
Central of Georgia

4,503

Connections

1944

•Alabama, Tennessee & Northern—.

week in 1942 of

Lumber Movement
Week,

Received from

freight Loaded

District—

freight for the week ended Jan. 29, 1944,
cars, the Association of American Railroads
an¬
nounced on Feb. 3.
This was an increase above the corresponding
week of 1943 of 76,392 cars, or
10.4%, but a decrease below me same
revenue

631

necessarily

equal

the

reports, orders made for
ments of unfilled orders.

unfilled
or

orders

at

filled from stock,

plus orders received,
the

close.

the

Compensation for

delinquent

and other items made
necessary adjust¬

half-year ended Dec. 31, 1943,

at the rate of 8% actual
per

less production, dp

a

dividend, payable Feb. 1, 1944, for

(Is. 71/sdi.

£1 of share capital paid up)

less income

tax, £606,345; leaving

balance of

£682,829 to be

car¬

ried forward to the next account.

Frank K. Houston,
the Chemical Bank &

President of
Trust Com¬

announced on Feb. 3, the
of
Robert T. Swaine,
senior
partner
of Cravath, de
Gersdorff, Swaine & Wood, as a

meet¬

served

had

on

board for many years.

the bank's
Mr. Swaine

of the Westinghouse

is a director

Co., di¬

Electric & Manufacturing

counsel to the Board of

rector and

Milwaukee, St. Paul
Co., and is a mem¬
ber of the boards of the Travelers
Aid, Society, the. Legal Aid So4
ciety and the Henry Street Visit¬
ing Nurse Service. He has ac¬
tively participated in current pro¬

the Chicago,

& Pacific RR.

■

'

'

he was formerly

of which

Co.,

-

general counsel; the Western Pa¬
cific RR; Co.; the Seaboard Air
Line Rwy. Co., and the Chicago,
•Milwaukee, St.: Paul & Pacific
RR. Co. Mr. Swaine, a native of
Iowa,

.

graduated from Iowa

was

University and the Harvard
Law School. He is a member of
the American and New York Bar
Associations, the New York Coun¬

State

Davis

7

;

Vice-Presi¬

Officer; Abel Hol-

dent and Trust

no

figures do not in¬
clude initiation fee receipts which
are
contributions to the capital
investment of the

G. Mader, formerly
with the First Trust Company of!Cashier

operations

those of

PresiMr. Kusterer succeeds Mr. Wildent
Placid, j lis as Cashier. Mr. Willis will conN. Y., with which institution he J tinue
as Executive Vice-Presibecame associated in 1941.
The dent.
has been elected
of the Bank of Lake

Albany,

states:
Assistant
Secretary of the Albany bank and
went to Lake Placid as Executive
Vice-President and a member of
the board of directors of the bank
there.
He
began his banking
career as transit clerk in the Al¬
bany Trust
Company and was
manager of the South End branch
of the First. Trust Company before

Albany "Times Union"
Mr. Mader had been

Secretary

made Assistant

in 1932.

•

Manufacturers

The

announced

&

Traders

of Buffalo, N. Y.,
Feb. 3 that it is

Trust Company
on

installment-loan
department
and that John J.
Sweeney has been appointed As¬
sistant Secretary of the institution
to head the department.
This is
learned from the Buffalo "Eve¬
ning News," which states that Mr.
Sweeney was formerly manager
of the bank's Main-Tupper Branch
and has been succeeded in that
post by James M. Hennrich, for¬
merly Assistant Manager.
Wil¬
liam Fraas has become Assistant
Manager of the branch, where he
has been head of the discount de¬
&n

developing

partment;
Mr, Sweeney

has been with the

bank for 30 years.

the

entered

messenger

.

in 1919.

77

1938
Cashier and Trust Officer of the
Rutland County National Bank, of
Rutland, Vt., has been elected
Second Vice-President and As¬
Claude

year

Trust

has

tary,
nine

the bank for

at

been

years.

of

Appointment

William

E.

Assistant Treasurer
was confirmed by the board. With
the bank since 1929, he has been
senior teller and also in charge
of the institution's Schools at War
Reid

new

as

y: ;.,:7;'
re-elected Wil¬
Miller President and

program.:
;
The board also

W.

liam

;

with $500,000."
It

rities.

Governors

of

Board

several hundred thousand dollars
less
than
in
1938; expenses ip

in the report that

noted

is

"the

con¬

members

of

service

also

were

the year its policy

tinued during

in Government secu¬
As of December 31, 1943,

of investing

investments

such

plan

$750 a year.
military
remitted
in
in

instances.; Receipts from
the charge on net commissions of

many

with

Na¬
Philadelphia in¬
its common capital stock

creased
to

of

Bank

$1,000,000 through the sale of
common
stock at its

additional
par

and on
outstanding

value of $50 per share;

Jan. 18 retired all the
Class

Class B preferred
The bank also as of that

A

and

We will

forces.

the armed

aggregated $3,-

100,850 par value, compared with
He adds:
$1,705,800 par value as of Decem¬
"Under authority of the Board
ber 31, 1942.
of Governors, we have initiated
It is also stated:
:v77- 7; studies
looking to the enlargement
"The
Exchange
in the cur¬
of the usefulness of the Exchange,
rent Fourth War Loan purchased
particularly
in
facilitating the
through its Building Company, flow of
capital for post-war re¬
$500,000 %% Certificates of In¬ construction. The Exchange must
debtedness due February 1, 1945,
be prepared to assume even larger
increasing the total investment of
responsibilities as a world market
.

and

the' Exchange

its

affiliated

companies in Government
ties by that amount.
"The total
of, Cash on

securi¬
Hand,

securities and other
assets increased by ap¬

Government
current

for securities."

Coy Joins Wash. Post;

Appleby In Budget Dept.
The resignation of
Assistant
and
to

Director

of

Wayne Coy,
the Budget

a special assistant
Roosevelt, was an¬
Jan. 30 by Harold D.

formerly

President

nounced'

on

director of the Budget.
Mr.: Coy
resigns to become a
Smith,

member of the staff of the "Wash¬

$5,160,000 compared ington Post" where he will be
as
of Dec. 31, Assistant to Eugene Meyer, editor

1943,

were

with

$3,700,000

7•:

1942."
The

report includes

income

and

expense

consolidated
accounts • of

and

Paul H. Appleby,
Agri¬

publisher.

former Under Secretary of

culture, will succeed Mr. Coy as
Director of the Budget
Bureau.
Mr. Appleby was sworn
into office Jan. 31.
In tendering

'Assistant

York
Quotation Company 7 and his
resignation to the President '
in Stock Clearing Corporation,—for'
Mr. Coy said:
June, removed the previous limi¬ 1943, and a consolidated balance
"While I have many regrets at
tations
on
receipts
from
this sheet as of Dec. 31, 1943, together
leaving the Federal Government,
with comparative figures for the
charge. 7 - y ;:77'::
yyyy J.i.yy'
I sincerely believe that I shall
"Listing fees, Stock Clearing previous year.
7 have an opportunity to be of even
Statements of operation and of
Corporation
charges,
quotation
greater public service in my new
service income and receipts from condition of the Gratuity Fund of
position.
I am most appreciative
interest were the other principal the Exchange are also included.
of the

authorized

17 the Kensington

On Jan.

tional

1931.

provide employment for

obliged to make deferred
repairs and improvements in our
buildings and facilities."

members and member firms were
the Exchange and its affiliated
Bloomfield
$1,067,735.
This charge was in companies,—the New York Stock
and Otto Billo of Glen Ridge, Vice
effect for only part of 1942.
Art Exchange*Building Company, New
Presidents.
Mr. Miller was first
amendment to
the Constitution
named President in

to

also be

J. Murray of

Charles

y

employees who have been granted
leaves cf absence .while serving

proximately
$1,588,000 between
Dec. 31, 1942, and Dec. 31, 1943,
while total current liabilities in¬
"Receipts
from
membership creased by $127,000, leaving a net
dues were less by approximately increase of approximately $1,460,Total
$188,000, 1943 being, the first full 000 in net current assets.
year in which dues were assessed net current assets as of Dec, 31,
Dues

•

,

$5,226,848, compared with $3,889,324 in 1942, an increase of $1,337,524.
;v--'
v//:";4-

at the reduced rate of

post; war,

be applied

.

:

Biddulph, who has 1 been
Officer and Assistant Secre¬

With ' reference to7the

Mr. Schram says "we should not
in reduction
only, preserve the strong cash v.
of death assessments until such
position of. the Exchange but plan
time
as
the net worth reaches
further to improve it.
We must

to

tinue

1938 which was the last

in

and ThusyfbrV public : price V <>

sale,

principal of the Fund will con¬

and

purchase

for

available

are

Under Section 7 of Ar¬
apprateaK"'^
Constitution, the. 7

294,087.

.

Mr.

Fund

1943, "was $1,-

of December 3I>

ticle XVI of the

of

post

income

by

items

provement.

the

members

which showed im¬

the

is¬

many

opportunities I have
personally."

y

Eighty-six

Citing the progress made by
Exchange Mr. Schram says:
list dur¬ ,7 "The progress made by the
new

'•/

had to work with you

The-President, in reply stated,
Haverhill stock.
sues were added to our
Ex¬ according to Washington advices
date transferred $200,000 to sur¬
National Bank, of Haverhill, Mass.,
ing the year; fees paid to the Ex¬ change, as evidenced by results, to the New York "Times":
to fill the vacancy due to the plus account. In its statement of change
in this connection, to¬ confirms the soundness of the pro¬
"Remembering 'the plans you
condition Jan. 18 the bank re¬
death of Clarence A. Rathbone.
gether with fees for securities gram of internal reorganization disclosed to me when I discussed
The election was announced on ported undivided profits of $117,- previously listed, were $583,000 and improvement which was in¬
and in 1943, compared with $221,000 itiated by my predecessors and the situation -with you some
Jan. 31 by President Herman E. 215, deposits of $24,013,309
weeks ago, I feel that I: cannot
total resources of $25,667,574. The
Lewis. Mr. Vaillant assumed his
which I have endeavored to ad¬
in 1942.
■
y
new

of the

Cashier

sistant

.

Vaillant, since

J.

last

as

elected to the
1943, however, were lower by
Executive Vice- more than $2,500,000.
;
'
President of the Bloomfield Sav¬
"Although the Exchange, dur¬
ings
Institution of Bloomfield, ing the prolonged period of de¬
N, J., at the annual meeting of
pressed business, was able to con¬
the board of managers on Feu. 1,
serve
its cash resources, the net
according to the Newark "Evening
earnings in 1943 replace our de¬
News," which also stated in part:
pleted reserves only to a small
In filling another new position,
extent."
: /:/.■>■ V
- ,y;
v
Howard D. Biddulph was named
In his report of the year's in¬
Trust Officer and Assistant Secre¬
come
and expenses of the Ex¬
tary. Mr. Nash, who formerly was
change Mr. Schram has the fol¬
Vice-President
and
Controller,
lowing to say:
vVv;-;:V'; -'-v.y'y.
has been with the bank since 1936,
He formerly was with the Bank¬
Income : 7 ; 7
ers Trust Company in New York.
"Gross income during 1943 was

a

7

>

Exchange, and

The net worth of the

Fund.

which the average daily
share volume exceeded 1,000,000
shares.
Gross income in 1943 was

year

Graham Nash was

new

Mr. Hennrich

trust company as

above

Vice-President; Harold L., which were $228,000 in 1943 and
Mix,
Assistant Cashier; • James
$296,000 in the previous year, y j
Woodford, Assistant Cashier, and
"It is
interesting to compare
Wallace S. Ritter, Assistant
our

Frederick

he was

substantial tax liability exists.

"The

brook,

;V:'

,

R.

Vice-President;

E. Cornwall,

Charles

George

President;

as

Willis, Executive

ty Lawyers Association, the Asso¬
ciation of the Bar of the City of
New, York.

Financial Betterment For First Time In 7 Years

,

Louis-San Francisco Rwy;

the St.

.

stock; transac¬

volume of

"The

:

"

reorganization of

ceedings for the

vesting public of the principles of
disclosure and fair dealings.
1' :

Y. Stock Exchange

.

ing of the board of directors held
that day.
Mr. Swaine succeeds
the late Carl A. de Gersdorff,
who

1944

bank examiner from

election

of the bank at a

Thursday, February 10,

,

tions on the Exchange during 1943
national
was
more
than double 'that; of
1933 to 1938.
In January, 1938, Mr. Vaillant President Schram Indicates Net Earnings In
1943 Of 1942, reported shM*e vol unie being
278,742,000 shares, compared with
was
elected Cashier and Trust
Officer of the ' Rutland County $676,509 Compared With Loss In 1942 of $815,972 125,685,000 shares or an average
daily volume of approximately 1,~
National Bank, Rutland, Vt., re¬
In presenting to members of the Exchange on Feb. 2 the annual
000,000 shares compared with a
signing that position Jan. 11, 1944. financial report for 1943, Emil Schram - President of the New York
daily average of approximately
Stock Exchange points out that 1943 was the second full calendar
Reporting the promotion of five year of his administration of the Exchange, and he records therein- 450,000 shares.' Dealings in listed
bonds during 1943 totalled $3,255,- employes at the annual meeting "improvement not only in the volume of transactions on the Ex¬
000,000 par value, compared with
of the directors of the New Haven
change, but in the internal operations of the Exchange which re¬
$2,311,000,000 par value in 1942.
Bank, NBA, of New Haven, Conn., sulted in net earnings for the firsts
"The two factors principally re¬
the New Haven "Register" of Jan.
time in seven years,'" Mr. Schram buildings and equipment for only
sponsible for the improvement in
17 said:
7':7;7;,
also states that the improvement six months, whereas this insur-.
G.
Harold
Welch,. who has in business on the Exchange was ance was in force for the full the Exchange's financial position
during the year were the increase
served in the capacity of Trust Of¬ reflected also in the
^yUv'y;7.y, in market activity and rigid, con¬
price of Ex¬ year 1943."
ficer of the bank for many years,
As to the Gratuity Fund Presi¬
change memberships, which ad¬
trol over .expenses.Although-th,ey '•>
and who is Secretary of the Con¬
:yy;7-7
vanced from $27,000 at the be-: dent Schram says:
increase irv leading volume made 7 *
necticut Bankers. Association and ginning of the .year to $47,000 at
"The Trustees of the Gratuity
greater demands upon our faciliactive in state and national bank¬ the close of the
Fund
during:. 1943 appropriated
year.
;
ties,.- total expenses were slightly
ing - circles,; was elected ViceWith respect to the earnings,1 $226,710 out of the principal of
.less in 1943 than in 1942."
\
;:;
President v and
Trust ' Officer, Mr. Schram
says:
:
j the Fund as credits to members
Mr.; Schram describes the report v
while George W. Kusterer was
on account of assessments due
in
V "Net earnings of the Exchange
as "more than a record of operatelected Cashier, r 7 7 7; yh:7 y.1. .7-77,..
and its affiliated companies for respect of the death of eleven
ingri-esults and finahCiai position'' : Other officers elected include
The
1943
were
$676,509,
compared members during the year.
—"It reflects", he says, "the con¬
W. Herbert Frost; who was named with a net loss in 1942 of
$815,- net worth of the Fund, however,tinuing recovery of the country's
Assistant Cashier, being elevated 972.
No
provision for Federal declined during the period by
'prihcipaL securities: market — a'from the post of credit manager;
income taxes is included in the
only $77,335.
The difference is market': wherein
theysecuritiespf *;'
while Donald B. Myers and C.
1943 statement; in view of the accounted for by interest earnings
our most important and industrial
Bronson Weed were elected to the
'carryover' provisions of the pres- ' and by appreciation in the market1
.and. business enterprises, owned :
office of Assistant Trust Officers.
of securities held in the
ent tax laws; it is believed that value
by many millions of: our people,
Directors reelected Abbott H.

Williams,

D.

F,

under

pany,

director

Annual Report Of N.

Companies

Items About Banks, Trust

.

COMMERCIAL & FINANCIAL CHRONICLE

THE

632

duties

on

bank

Feb. 7.

also

lists

funds

trust

of

Expenses

of $2,265,793, kept entirely separate
"Total operating expenses were
and apart from the assets of the
experience in the banking busi¬
$4,012,091 in 1943, compared with
bank.
?;'■:y
ness
in Massachusetts and Ver¬
$4,087,703 in 1942. Operating ex¬
mont, said an account in the local
James B. Fleming was elected penses in both years were lower
paper, which added:
Vice President and Treasurer of than in any of the past 20 years.
In 1923 he entered the employ
"Total salary and wage pay¬
the Potter Title and Trust Com¬
of the Leominster National Bank
ments in 1943 were slightly less
pany of Pittsburgh on Feb. 3, at
as receiving teller, later being ap¬
a
meeting of the directors.
He than in 1942, although salary
pointed Assistant Cashier, holding
rates
were
generally
higher.
had
previously been Secretary
that position from 1929 until 1932.
Other expense items were lower
Mr.

.

From

assistant

1932

to

until -1933

the

he was

receiver of the

and Treasurer.
At

the

same

/

meeting, said the

National Bank, re¬ Pittsburgh "Post Gazette,"- Leo J.
Loughren was elected Secretary
signing to become an examiner
Leominster
with the
of

the

Bank.

vance.

Vaillant has had 20 years

national examining force

and

Assistant

Treasuer.

serving previously
Federal Reserve
He served in this position ant Treasurer,

Boston




been

-•

He had

as

Assist-

as

a

result of economical opera¬

"We

V:.'

v

have

'

'.\.

witnessed

:' ,7
in recent

the gradual development in
this country of a more informed
attitude by investors in respect
years

to

risktaking
of uninformed specula¬

securities.

Intelligent

taking is more and more
the place

stand in the way of your carrying
them

with
the

into effect.

It is, however,

sincere regret that I accept

resignation tendered in

letter of Jan.

close of business next
"You

your

25, effective at the

devoted

have

some

of

use

is constantly be¬

your

ing made of the

facilities offered

service in varied, offices of great

tion.

Wider

by the Stock Exchange and by its
member firms for obtaining fac¬

best

years

responsibility.

-

In

to

the

all

of

public
these

insurance tual information regarding listed posts and latterly as Assistant
securities.
The increased public Director of the Bureau of the
payments during
1943 is ex¬
plained by the fact that compar¬ participation in our market may Budget you have; done splendid
be regarded as a measure of the
able payments in 1942 included
War Damage
Insurance on our endorsement by the American in- work. We shall all miss you."
tion.

The increase in

.

Monday.

*