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Final
In 2 Sections-Section 2
ESTABLISHED OVER 100 YEARS
Edition
ommetcial and.
Chronicle
Reg.
Volume
Number
161
New York, N.
4362
S.
U.
Pat.
Nearly 10 days have elapsed since the authorities, with
they thought it should know or believe about what Holding That Economic
went
on
Quantity of Money
Values Must Ultimately Be Related to Human Values, Father
of encouragement
source
a
Copy
Regent, School of Commerce and Finance, Saint Louis University
what
It has been
a
REV. BERNARD W. DEMPSEY, S. J.
By
great flourish of drums and of trumpets, told the public
at Yalta.
Price 60 Cents
Y., Thursday, February 22, 1945
The Price and
The Financial Situation
a
Office
Dempsey Argues That the Analysis of the Nature of Interest Cannot Yield "a Numer¬
to us to observe from day to day the growing inclination
ical Natural Rate."
Points Out That Since Capital Values Are Not Always the Result
on almost all sides to inquire more and more closely into
of
Savings,
"Capital
Values
Bear No Necessary Relation to Antecedent Costs," and the
the reports of that conference—and to inquire, we may add,
with increasing evidence of an inclination to ignore current Interest Rates, Therefore, Are Bank Rates and Not What Rates Would Be if Depend¬
propaganda and inquire what really was achieved.
Few ent Entirely on Savings. Denies Keynes' Theory That Under Ideal Conditions, Pure
announcements have ever been more carefully "staged" or
Interest Would Be at Zero. Urges Solving Economic Problem Directly by Social Reform
accompanied by greater effort to be certain that the public
louder and
it
announcement, moreover, been received with
more
appeared, for
if the
For
universal immediate acclaim.
reasons
a
time
not altogether easy to discern, as
public would insist
upon
being badly "taken in."
It is
appear to be real military gains
against Germany may have been
large part responsible for the enthusiasm which seemed
at first to greet this announcement.
Right or wrong, many
had grown dubious of Russia's intentions as the winter
months wore on.
When the Red Army at length began to
in
appeared to many that the Allies in the West were
not ready to move with it.
There was a widespread feel¬
ing of uneasiness that the military efforts of the armies in
eastern Europe and those to the west were not well coordi¬
nated—and even some feeling that there was danger of
fundamental differences among the Allies which might pres¬
it
move
even more seriously interfere with the most effective
conduct of the war against Germany.
The joint communi-.
ently
following the Yalta conference appears to give solid
que
(Continued on page 860)
p r e se n
Economic
is
but
genuine
argument in
some¬
who
know
to
is.
Potter's
Mr.
of
Rev. B. Wi Dempsey
Interest"
("Chronicle," Dec.
which I
with
twofold
a
1944),
14,
asked to discuss, deals
am
subject
matter
which Mr. Potter rightly seeks to
acute observations
actual
operation of the
the
on
(a)
banking and monetary system in
itself and in relation to his own
the ultimate basis of
value and valuation; and (b) in¬
of
theory
observation
genious
the ulti-
on
By CARLISLE BARGERON
Unless we are mistaken, there is
likely to be anything but peace and
despite the Gallup Polls to the contrary, we are in an awful ferment
of doubt, suspicion and distrust.
There are some writers and some
radio commentators who are making money these days by explaining
to us the Axis
both
the
university
and
the
propaga n d a .
Their
expla¬
nations
,
prison.
Did they kill a lot of
our
people, those pathetic souls
who after three years of impris¬
onment now faced release, only
are
always pretty
devious
and
to die?
reflect mostly
to
adventure
an
high
the
into
intellects.
But,
as
need
own
propa¬
is
It
to
home
more
Carlisle
Bargeron
Several
weeks
ago
prison.
VA more stirring and
heart-warming story in this war
yet to be written for us.
A
few weeks elapsed and we have
was
yet to receive more than a frag¬
mentary list of those rescued.
have
read,
that
is,
those
closely read the newspapers,
the
We
have
been
far
as
one
ask¬
are
on
the maim
with
the Allies not doing so well
Japan
to
seem
the Western front.
Russians
of
front
Berlin.
are
.
8o7
yield
terest
a
rate;
numerical natural in¬
rather it yields the
practical and weighty conclusion
a
healthy economy is one
which actively serves these human
that
to
859
Something to do
of
Trade
Review
In
a
to
think?
are
We
within
on
the
coincide
What
are
One
day
30
miles
on
to
Dec.
Price
Retail
December
c
o
m
m
n
e
which
.
864
Ahead
Class
I
"Chronicle" of
Jan.
for
..,*816
'44. *816
Sheet
Railways (Oc¬
to
Store Sales
in N. Y.
District
*818
Cotton
Prior
Civil
Ginned
to
Jan.
from
1944
Crop
16..................*818
in
January ..........................*818
Engineering
Construction
page 867)
♦These items and reports
issue
cated.
bf
Feb.
19,
on
appeared in
pages indi¬
letter
by
Marvin Jones,
Food
Admin¬
Mr.
istrator.
Bowles
Chester
con¬
tends that the
Bowles
comment
"seems to
example
me
of
confidential
a
most unfortunate
misquoting
letter"
and
from
that
a
the
sentences referred to in the letter
"have
our
a
Mr. Bowles to
Living
December.
1945,
written
....*817
Cost Figures for Nov. 15Dec. 15, 1944,
:....*817Finished Steel Shipments by U. S.
,
>■
Steel Units in December
*817
18,
page 289, and
which related
.
on Treasury
Note Exchange
November
the
of
News," in the
.....
Index
weekly
869
*816
Certifi¬
..*817
Labor
Department
Reports
on
Working Hours and Earnings in
-
for
page
on
865)
Has Been
Takes Exception
Had to Be Given
been
context
preted."
removed
Admin¬
objects to the
Feb. 14, Chester Bowles,
t<P:
column,
"Washington
Report
Dept.
(Continued
from
■
their
and completely misinter¬
.
The
ap¬
Barge-
ron's
870
Balance
Income,
and
they should be
Price Administration,- strongly
istrator of the Office of
31,
......*815
*815
Federal Debt Limit at Dec. 31,
cate
the liquidity
with
"Disintegrate"^ **
or
868
Western
getting ready for a big
(Continued
Receipts
...
October Hotel Sales...........
for
The first of these is
liquidity of the banks
of business; surely
letter to the Editor dated
869
Market
Metals
Weekly Electric Output.
United States Export Trade in 1944.
Items
of them, though known,
before been so neatly
conflicts
often
Statement That His Organization
869
Commodity Prices, Domestic Index.
871
Weekly Carloadings...
.... •
869
Weekly Engineering Construction...
871
Paperboard Industry Statistics .■>■-»..
871
Weekly Lumber Movement..........
Fertilizer Association Price Index... 868
Selected
the
that
valuable
Misinterpreted
870
Fairchild's
presented.
several
Some of them are
In Letter to Editor, OP A Administrator
870
Odd-Lot Trading
1944
light
to
considerations.
Chester Bowles Says He
NYSE
Cottonseed
tary system, Mr. Potter's acumen
brings
some
not
or
In
never
Trading on New York Exchanges...
Non-Ferrous
with the social
of "pi" or "e"
have
857
Prices and Yields... 868
Items About Banks and Trust Cos...872
Bond
State
us
new;
the
of
Ahead
Washington
Final
of
the
Situation
News
General
equivalent
"i."
analyzing the actual opera¬
tions of the banking and mone¬
nish
Actually, such an analysis can¬
Regular Features
Moody;s
radical and true, cannot fur¬
ever
5% natural rate of interest.
tober)
question:
land
that
Japs came back and bombed
inartic¬
and
miral Nimitz' attack
who
a
peared in Car¬
so
people
physical sciences employ; the 20year development period involves
positively to the com¬
munity, which they need for their
own
maintenance
and develop¬
ment.
Such considerations, how¬
therein
as
the
see
such
constant
lisle
boys come home?"
These other thoughts are run¬
ning through their minds: MacArthur's
great success and the
more
recent
headlining of Ad¬
the
Potter to
Mr.
contribute
framework
social
this
of
868
"When do the
on
.
natural
867
are
ing them the
important.
ity
a
Weekly Coal and Coke Output......
which their constituents
and
MacArthur
went into Manila and
liberated
thousands of Americans at Santo
Tomas University and at Bilibidi
.
in
quires
maintenance
during the
period of maturing and the econ¬
omy must produce a surplus suf¬
ficient to maintain it. The Stabil¬
Weekly Steel Review..
Moody's Daily Commodity Index —
Weekly Crude Oil Production......
who are up
their con¬
concerned, the pa¬
geantry of the Yalta conference
which they in their hearts don't
believe means a thing and about
against,
Page
From
often
This human investment re¬
causes
justice is the great but
neglected obligation of all
of
the
community to
Social
own
our
far,
so
stituents
our
ganda.
at this point
reporting what
the principal investment of
generation, an investment
which takes some 20 years to ma¬
members
The only jus¬
tice involved here is social justice.
expressed
whom
of
ulate
is
closer
doubts
ber
that somebody
explain
say
mind, but
and
the
questions raised by members of
Congress, the overwhelming num¬
Congress, a
real
seems
not
are
through
runs
members
the
of
we
the
we
from
gather
should
We
that
stratosph ere
of
to be able
find out what happened.
Nobody
Editorial
and
Financial
relation between a person
a
and the community.
CONTENTS
GENERAL
that
serenity in the Congress the next few weeks. ■ On the assumption
these men are close to the people, especially those of the House,
have
economic
Actually, the initiation and
safeguarding of life within the
family is the mainspring of eco¬
nomic activity.
Children are al¬
ture.
that somebody
"Theory
development is
each
need
we
Human
values.
supreme
ways
body is wrong.
And
the
matter
of
rigid
contractual
(cummutative)
justice. Contrac¬
tual justice concerns specific obli¬
gations between persons; here we
a
value.
battle,
which
fullest
its
in
life
therefore
since
values,
to human
related
not
integrate:
From Washington
Ahead of the News
t
academic
an
sh.^m
efficiently. Nor could Mr. Potter's
5% natural interest rate ever be
they
have
meaning only
in serving
human uses, must ultimately be
time such dis¬
cussion
grounds of economic value,
capital value and valuation in
particular.
At
practical.
the
possible that what
war
and
which
issues
institutions
mate
the
to
s o
fundamental
lie behind the
Military Gains
in the conduct of the
1
purposes,
<§>-
questions, but
a
is one whose economic
are
such that basic
social institutions like the family
flourish and function easily and
not only to day-by-day "practical"
its wisdom in devoting space
on
dom has any
Chronicle" is to be congratulated *>-
'The Commercial and Financial
Sel¬
would be convinced that miracles had been achieved.
Bowles'
of Mr.
text
to the Editor
and Finan¬
Editor; "Commercial
cial
♦
letter
follows:
Chronicle":
~
I
am
writing
to
comment
on
piece [refers to article ap¬
pearing under the "by" line of
your
Bargeron.—Editor] in the
"Commercial
Financial Chronicle," in which
Carlisle
Jan.
and
18 issue of the
reported that I wrote to Mar¬
the morale of the
OPA was going to pieces because
you
vin
Jones that
the
agency
"felt
it
was
being
given the runaround in the Wash¬
ington bureaucracy. The OPA had
to
be
given
something to do,
otherwise
his
disintegrate."
This
organization would
•
■
comment
most unfortunate
seems
to
me
a
example of mis¬
quoting from a confidential letter.
Not
only
is
the
quotation inac¬
curate, but the sentences to which
you
refer have been removed from
(Continued on page 867)
Act"
^Bietton Woods Agreements
Introduced In Congress
national Fund and Bank.
Secretary of Treasury's
Be Reflected in Par Value of
Dollar Fixed by Fund, Without Approval by Congress.
Fund Immune
From Suits by Individuals, but Suits Against Bank Permitted in Fed
<eral Courts.
Johnson Act Repeal Limited to Loans of Countries That
Gold Value of the Dollar.
l>ut Bans Changes in
Price of Gold Not to
Power to Change
Are Members of Fund.
'
President's special message to Congress
the Bretton Woods
1944,
compliance with the
In
the immediate adoption of
February 12, urging
•on
22,
July
of
Agreements
issuing its own obliga¬
tions or guaranteeing the obliga¬
tions of others.
All suits against
the Fund and the Bank are placed
through
Wagner (Demo¬
of New York), and Represen¬
Robert
Senator
crat
(Democrat of
tative Brent Spence
both
Kentucky),
respectively
•
exclusively under the jurisdiction
and the
House Committees on Banking, in¬
troduced in their respective cham¬
bers identical bills providing for
adherence of the United States
to
the
International
Monetary
Fund and the International Bank
for Reconstruction and Develop¬
the
Since
ment.
Senate
of the
chairman
of the Federal Courts.
Senator
bill, stated that he and his col¬
leagues in the House of Represen¬
tatives had ,three objects in mind
wanted a bill which
Congressional
ap¬
proval to United States' participa¬
tion in the International Fund and
"First,
the matter now stands,
Congress must vote for both the
Fund and the Bank jointly, and
bill,
as
prevent any fundamental changes
provision in the
being
Bank,
important
Fund
and
country's
this
"We
quotas,
to
or
accomplishes all of these
objectives.
Under it the United
ducing
a
change in the gold value of the
dollar without
the specific ap¬
of, the Treasury of his
Secretary
should
bullion, it effectively nullifies or
in
lar
"shall
not
grains of gold, nine-tenths
fine."
Thus
well
under
under
as
International
the
of the
To
amount,
their
other
mem¬
in
currencies
terms
gress.
the
This
may
United
States
House
of
•
Section
cited
authorized
is
of the bank
are
to
for
the
accept membership
to
United
States
inafter referred to
as
Reconstruction
and
In¬
the
in
(here¬
the "Fund"),
Bank, for
Development
(hereinafter referred to as the
"Bank"),
provided for
by
the
Articles of Agreement of the Fund
and the Art-icles of Agreement of
pro¬
the Bank
capital
Act
set forth in the Final
as
Nations Mone¬
of the United
and
Financial Conference
dated July 22, 1944, and deposited
in the archives of the Department
bill
of State.
tary
provides merely that the ban
be removed with respect only to
countries that
or
ino1 uded
+he
in
'mm^ership
matter
which
the
Sec.
bill
attempts to settle is that relating
tional
Fund
and
the
Bank,
to¬
gether with its employees, in this
country.
The measure provides
that the
of
The
3.
|
a
alternate.
each
The
shall
be
the Fund and
individuals, since it is to
transact business with the public
the
of
governor
sued by
a
President, by and
Senate, shall appoint a governor
of the Fund and an alternate, and
appoint
as
and
with the advice and consent of the
governmental
agency, can be sued only with its
own consent, but the Bank can be
Fund,
Governors
Executive Directors
of
to the legal status of the Interna¬
pro*
Bank
term
five
of
and
consent
an
of
office
of
The
years.
the
Senate,
shall
executive, director
an
(Continued
subject of immediate ami Vital**
post-war
% Congress will scon be
a
interest,
asked
•
..
the
in
"At
his
participation in the Bank and
Monetary Fund which is
with it.
Your interest is
our
$43,000,000,000.
of
ratification
consider
to
of
executive, ditec-
on
page
862)
world trade.'
,
chiefly In the Bank; and the Fund,
governors,
except as its proposed powers and
functions bear on the Bank/will
predominantly
loan associations and credit unions
will
paying agents of
Government.,
the
as
Federal
"Present law permits the desig¬
of incorporated banks and
companies. Mr. Morgenthau
the other groups had pro¬
trust
said
tested
He added
their exclusion.
that the
would not be
mass"
but
the
Treasury would proceed selective¬
ly in applying the provision if
adopted.
new
group
"in
designated
Sponsorship
The
Bank
have
completed
F
o r e
been
discussions
with
Economic
Adminis¬
in
i g n f
trator
/substantially
Crowley-."'
States,
be
$10,000,000,000
authorized, of which 2%, payable
U. S. Dollars, and 8%,*
in
payable in subscribers'^ currencies,
shall be paid in promptly. A fur¬
nations, such
Neutral
nations.
as
Sweden and Switzerland, may be¬
members
come
later
on.
In
gen¬
been well
and puball interested nations and
the
eral
has
proposal
received by the experts
lies
its
of
to
seems
Bank
Gold
be accepted
play
can
that the
useful
a
role
Dollar 'balances
in
gold
or
currencies, may be called by the
management. The remaining 80%
is subject to call only when re¬
quired to meet guarantees or ob¬
ligations of the Bank.
The Balance Sheet of the Bank,
theoretically, after payment of the
first
10% of subscribed capital,
will disclose assets—
.
—
254.000,000
x
(FF>.
balances
French
(Rupees*
balances
($>
Canadian
balances
Netherlands
'
1.800.000,000
30,000,000
105.000,000
32,000.000
21,000,000
26.000,000
58,000.000
22,000,000
-
(^1
"
Belgion baiahces, (.BF>_
48,000,000
960,000.000
—
India balances
-~
18.000,000
788,000,000
,——
$818,000,000
/;:■%''
Czechoslovakia, Poland. Mexico
currencies....;
other
92.000,000
—
;!*>%/'' ^
Finland
/•.;
subject to call-
Subscriptions
land
had
to
Papenl
Dec.
the
$235,445,
ment,
on
15
install¬
its World War
I debt, was made known on Feb.
which
at
time
advices from
Associated
1,
Press
Washington stated:
addition, the Treasury De¬
partment issued licenses for re¬
sumption of interest payments to
The
gold value o i the assets
will be protected by the covenanof all stockholders to add
ade¬
quate
value
to preserve the gold
their
contributions ii
sums
of
exchange declines from the
rates fixed in agreement with the
their
Fund, the operations of
intended
to
which are
sta¬
determine 'jaaid
/VS//'
both
make loans, pre¬
of the Bank is to
the bondholders, will come out of
sumably it may make interim in¬
vestments in short term securities
frozen
funds
in
this
of
Treasury"
governments /whose
thq
cur¬
rencies it holds. Accounts may be
has maintained with central banks, or
the
designated fiscal agencies
Government debt because it would'
scribing governments.^
accept payment
on
of sub¬
have been unfair to the American
bondholders, whose interest
ments
were
pay-.,
issues
which interest payments
on
are
resumed
are
City of Hel-
singfors, 6V2% bonds of I960; Fin¬
land's Residential Mortgage Bank,
6%
bondc
of
1961;
Republic
of
Finland, 6% external loan sinking
bonds of 1945;-•
fund
V
The
Bank
may
make,
guaran¬
tee, pr
frozen.
"The Finnish Government bond
now
• •
participate in loans to any
business, industrial and agricul¬
tural
enterprise,: political
sub¬
division of or a member itself. Ir
addition
to
the
tary of the Treasury, said the ac¬
and
obligation
by-q a ,nonmember borrower, the loans musl
be guaranteed by the member, or
its central bank; hence an inves¬
furnished
security
tor in such securities
Henry Morgenthau, Jr., Secre¬
tected
of
tions.
The
proved by
Heisingfors
6V2%
dollar
rency
a
New
York
Stock
orove
or
bonds
the
on
Exchange
was
while
the
same
time
Finland
8,100,000,000
resumed
Curb
on
Exchange at the
resumed
dealings
Residential
Bank 5% bonds.
Feb. 5,
;
in
Mortgage
\
r
to
a
given country
and services
to pay for materials
to be imported.
will
be
Bank's dis¬
the
at
more
obliga¬
projects
must
be
ap¬
a
loan is floated shall
ap-
disapprove it. Generally
the. amount
*A paner
of
a
loan in a
cur-
prepared bv Mr. Hun¬
ter for the 26th
Mid-Winter Trust
Conference, Trust Division,
ican Bankers Association. •
Amer¬
'
^
•
making
for
facilities
Three
loans
funds paid in, funds
by
sale
of its own
debentures, and guarantees. Loans
posal:—the
borrowed
in
one
any
of
portion
must
currency
borrowings
capital
Spe-J
its
funds in the same currency.
rial
by./members
action
is
Total
rule.
and
re¬
sound
quired to deviate from this
participations
loans,
shall, not be in¬
exceed 100% .oLunlm-'
guarantees
creased to
capital,
paired
of
serves
surplus and re¬
- Competent"
Bank.
the
opinion exists that use of deben¬
tures rather than guarantees may
be found wiser in practice and
tend to maintain the Bank's credit
and uniformity in the prices and
yields
upon
other
sound
its
obligations.. An¬
feature
Bank shall have the
is that the
right to take
immediately in full any ob¬
it
has
guaranteed on
which default has occurred.
■ •/•%■
up
ligation
will be pro¬
or
three
by
competent committee,
on those bonds
up to date.
That the rate of interest must be rea¬
sonable, the Bank must receive
is, payments due in the past now
1% Or 1V2% as compensation and
will be made.
/
• /
be permitted to supervise the use
The
restoration of - trading in of loan proceeds. The country in
the Republic of Finland 6% and ! whose market and in whose cur¬
City
$1,100,000,000
shall not exceed the sum needed
and; the
While the fundamental purpose
the
to
Loans
United States Government and to
refused to
*r''
.
not exceed the Bank's
bonds.
payments,
foreign
rcimv
made
bilize exchange rates.
American holders of Finnish Gov¬
-
$910,000,000
only.
to stockholders
will be
Liabilities
finally permitted Fin¬
pay
'/V''—r
uv
Total
War Deist
96,000,000
v
51,000.000
$i.._
(Yuan
balances
104.000,000
26.000,000
Sterling balances ,{£»„.
Russian balances iChervonetzi
China
subscribers'
ther. 10%, payable in
$182,000,000
—•
—
and
EL S. Accepts
five
the
to
Russia, China, France,
Netherlands, Belgium, Czechoslo¬
vakia, Norway, Brazil, and the
allied South, American and other
Australia. South Africa.
i
be
United Kingdom and members oi
"Mr.
Morgenthau passed off a
about the possibility of
placing Export-Import Bank au¬
thority under the Treasury.
He
said, 'Let's win the war first.'
He
disclosed that plans for enlarging
the scope of the Export-Import
-
composed of per¬
Capital shall
Bank
the
of
United
the
include
-
undoubtedly
will
satisfactory
sons
'
,
and board of
Management
largest stockholders.;
discussed.
the Empire,
nation
The
allied
not be
de¬
reconstruction/ and
.
velopment of projects which will
cop tribute
to
employment
and,
conference here
today, Secretary of the Treasury
Morgenthau revealed that a provi¬
sion in the bill calling for a debt
limit
of
$300,000,000,000
would
have, the effect of permitting the
Treasury to designate savings and
press
an
President, by and with the advice
and
at
tion will bring interest payments
Appointment
are
both the Fund and the Bank.
Another
defense
"Heretofore, ' the
market, it has become necessary
to repeal this law, if the Bank is
to function at all.
However, the
governments
its
national debt stood
the
Finland's
and in the International
be nego¬
tiated in the United States
year,
started
To investors and students oLdevelopments in the capital mar¬
proposed in Bretton Woods Final Act is»
■/
kets the International Bank
.
ternational Monetary Fund
posed, under the organization of
the International Bank, that both
the direct and the guaranteed is¬
sues
be
Woods
may
The President is hereby
Sec. 2.
of loans
it
As
States.
Act
"Bretton
the
Acceptance of Membership
"
foreign governments which are
in default on their obligations to
United
1940-fiscal
country
Trust Funds and Insurance Portfolios.
,
end of
when this
the
approximately
gram,
its
this
noting
part:
"At
the
bureau
country.
of
the
in
said
"The
Title
Agreements Act."
of
tion in the United States
Commerce"., from
of
ernment
This
1.
/as
of the
in Con¬
>
Short
the bill
(Section 10) provides merely for a
partial repeal of the Johnson Act.
This act places a ban on the flota¬
provision
Representatives
of
assembled.
gress
devaluation con¬
might develop in the ad¬
Another
Development.
United States cf America
tie the hands of
representatives
ministration of the Fund.
'-Journal
Washington
"In
in any currency
test that
and
construction
of Con¬
approval
or
Monetary Fund and
for Re¬
International Bank
Be it enacted bit the Senate and
But the gold value of the
dollar can be changed only after
consent
Advo¬
Announcement that the United
the In¬
p
(Democrat),
Chairman " of
the
Ways and Means Qommittee.
The proposed figure, it /is, Taken
Against Sovereign Governments in Case of Default, and
noted, is about 7 times the pre¬
cates That the Bank Confine Its Own Financing to the Sale of Deben¬
war
level, and the debt is 'cur¬
tures Rather Than to the Guaranty of Loans.
Sees Need of Legislation
rently some $241,000,000,000. Ad-;
vices Feb.
13 to the New York
to Make the Bank's Debentures and Other Obligations Legal for Savings,
States
provide for the participation
the
gold.
the
(S. 540) having the
Agree¬
ternational
the value
might change
Wagner-
of the United States in
Fund, either without
(up to 10 per cent) or, with the
consent of the Fund, to a greater
•of
the
of
text
A BILL
measure,
the plan
Fund,
sections."
various
'
•
Company
York-Trust
New
Functions of the Proposed Inter¬
Development, Mr. Hunter points
Out thi Matters-of ChiefConcerntoInvestors.StatesThatthe-Bank
Will Be Confronted With the Problem of What Legal Action Can Be
House
ments Act" follows:
of the
bers
its
Spencer Bill
Vice-President, The
000,000,000 to $300,000,000,000 was After Outlining the Organization and
introduced in the Hous.e on .Feb/,
national Bank for Reconstruction and
13
by Representative Doughton
be
15 5/21
as
of
than
other
as
I
short title "Brriton Woods
of the U. S. dol¬
Fund
the
communicated
to
full
The
this power by the pro¬
visions in Section 6, which stipu¬
suspends
Legislation which would raise
the-public debt limit from* $260,-
Appraisal For Investors
^ CLARENCE E, HUNTER.*;".
1
outline briefly the
like
content
bill,
the
of
great-importance
present power to set the price for
the buying op the selling of gold
lates that the par
assume
rightful position of leadership
in international monetary and fi¬
nancial affairs.
Because of the
bill does not directly deprive the
•
will be enabled to
States
its
Though the
Congress.
proval of
continued,
he
believe,"
An
Sought
question
'that the bill which we are intro¬
change in
shall not consent to any
ap¬
proval of Congress."
that they
Bank
the
on
specific
the
without
tions,
is the re-1
placed on the United
representatives on both the
opposition,
striction
States
made in the Fund or the
or in the participation of
:he United States in these institu¬
The International Baiik-^
C
Debt Limit to
legislation nec¬
United States to
participate in the Fund and the
Bank, including the payment of
che subscriptions of the United
States.
And finally, we wanted to
Fund.
gressional
all
the
for
essary
proposed measure, which is un¬
doubtedly aimed at allaying Con¬
An
wanted to make
of the affirmative
banking associations
"which favored the proposal for an
international
bank,
but
which
-urged postponement or defeat of
participation in the International
leading
Monetary
the
In
Bank.
International
the
certain that the bill contained
the recommen¬
committees of the
the
of
give
second place, we
this would ignore
dation
we
would
provided in the
both institutions is
the introduction ol
on
the
at
acceptance
addressing
in
Wagner,
the Senate
Increase of Federal
300 Billion
Accept Membership of U, S. in Both Inter¬
Makes Appropriations of Necessary Funds,
Bill Authorizes President to
Thursday, February, 22,T945
& FINANCIAL CHRONICLE
THE COMMERCIAL
S58
Illustration
Loan
As
illustration
an
followed
Power
which
Tyrol
Company
was
pro¬
making loans, let
in
the
to
>
the
would probably be
cedure which
refer
of
offered
us
Hydroelectric
loan
of 1925
in the United
States in the amount of $3,000,000,
maturity 1955, interest rate 71/2%„,
96V2 secured by a
all property, and
guaranteed jointly and severally
by State of Tyrol and City of
Innsbruck. If a similar proposal
offering price
mortgage
on
should be made to the Bank after
it
is
operation, it would be
competent committee
would
also ascertain the
in
studied by a
which
-Volume
of
amount
foreign exchange
wire, dyna¬
needed to buy copper
other machinery and equip¬
not obtainable in Austria,
mos,
ment
determine
and
that
the
to
reasonable
on
not
be
terms
in
could
project
financed
satisfaction
its
capital markets without the
guaranty of the Bank, or by loans
from the Bank. After approval by
the
committee and the. Bank's
management and determination of
the security and guarantees,
if
Russia will add
to be supplied by the. bor¬
rower, repayment provisions and
Earnings and Reserves
would
loan
the
needed
to
the
be
sum
imports as
above mentioned and might con¬
sist
only
for
pay
dollars,
and
other country
dollars,
of
or
Swiss francs, pounds sterling,
the currency of any
in
which
to
be
a
tranche of the loan is
The
.offered.
coupon
and
offering price to the public, if the
issue is to be sold with the guar¬
Bank,
International
the
of
anty
Would be determined,
all legal re¬
quirements in the markets where
is
issue
the
would
be offered
to
missions will be used to pay ex?
and establish reserves to
defaulted ;obligations may
penses
which
with, and the consent
of the relative governments ob¬
tained;
The sale of the bonds
would be made through the facili¬
ties of the issuing house handling
the transaction. For its guaranty
the International Bank would re¬
ceive annually 1% or 1 Vz % of the
be complied
ported in some sections of the country but improvement in some areas
also noted. According to Dun & Bradstreet, orders received by
manufacturers were the highest in several weeks and were larger
that the operating rate of steel
companies (including 94% of- the
industry) will be '96.4% of capac¬
some
cases.
—r . ■,
-——r~/:. \ ; ..•"/•/
mounted.
/v/ Encouraged by the news the se¬
Progress in the steel industry curity markets the past week dis¬
showed
some
improvement
in played marked activity with in¬
dustrials
and/rails in the van¬
output ; with
shipments higher.
guard of the advance. Reflecting
New order volume continued to
the higher trend of values,
the
pour in at a heavy rate from the
week beginning Feb.
compared with 91.4%
one
week ago. This week's operating
-rate is equivalent to 1,765,700 tons
of steel ingots and castings, com-
than
be charged.
These reserve funds,
interim, are to be conser¬
vatively invested.
Risk
Credit
,
be
said
risk
to
may
credit
the
discussed
factors
The
this
to
represent
to
judged
be
by
investor.
an
Sovereignty
Legal Resources
and
con¬
fronted with the problem of
what
will
Bank
legal action can be taken against
sovereign
governments
in
the
cases of defaults under loan con¬
tracts and calls for
payments un¬
subscriptions to stock, it will
have
strong
as
position in these
a
be obtained under
matters as can
circumstances. This is
the
to be
As
risk
a
appraised by an investor.
week from 738,6*80
ally
gener¬
less acceptable to inves¬
are
tors than direct ones but in many
the
Cases-
difference
•
in
price
is
small and m notable cases,
very
to 755,436
to
dropped to $3,816,554,000
five-day week from $4,392,-
street,
in the
193,000 in the preceding week.
Lumber production in the week
increased
to
the
highest level
since the week of Dec. 9, 1944,
continued
its
civilian
shrinkage
Paper
uses.
and
paperboard operations rose, not¬
withstanding the fact that the
nation's
paper
scribed
the
supply
de¬
was
the most stringent since
as
beginning of the war.
as
for
instance
the
Austrian
In the textile field output held
principal sum outstanding.
Should the International Bank League of Nations loan of 1923, firm and close to last year's level
decide to make the loan out of the guarantees have substantially with
production of men's and
funds in hand, the same proce¬ raised the market valuation of boys' clothing down slightly.
A
dure would be followed except such obligations. Presumably the
mild increase occurred in output
that there would be no public of¬ Bank's debentures will enjoy high of leather products over a year
fering and no guaranty of the credit but whether all guaranteed ago, but the industry is still con¬
Bank would be involved. It is pos¬ obligations will rank equally is fronted
with
the
problem
of
sible of course, that public an¬ most unlikely.
maintaining an adequate supply
nouncement of the loan and its
As stated above it would seem
of materials.
,
terms would be
made by the bor¬
the International Bank
consent of all concerned, in
with
of a. sound policy as to
keeping the public informed of
the International Bank's activities.
Loan transactions with industrial
pursuance
companies and agricultural enter¬
prises would follow the same gen¬
pattern.
eral
No
Stabilization Loans
to be a wise
policy for the Bank's
management to confine its own
financing to the sale of debentures
and use the
proceeds to make
loans, rather than to guaranty a
great variety of loans of political
bodies, industrial, and agricultural
organizations of different credit
standing.
Through this practice
the
debentures
one
character
would
far
as
be of
international inter¬
the loan
genuine
est, to merit approval by
committee of the Bank.
■_
of under¬
protection to the in¬
by the Bank's right
to call upon all stockholders for
funds required to meet its obliga¬
tions. While calls will be made
vestor is given
one stockholder
excused by the failure of
others to respond.
Accord¬
proportionately,
is
not
the
ingly
one
could say that as
to
to $3,175,000,000, the
United States is fully obligated;
;as to
a further $2,373,000,000 the
British Empire; as to $450,000,000
loans
up
France;
as
to
$275,000,000
gium;
kia;
These
the
$225,000,000
Bel¬
$125,000,000 Czechoslova¬
$50,000,000
Norway,
etc.
alone total $6,675,000,000.
Netherlands;
happen
announced. The
situation might be different if a
loans
were outstanding, in addition to
the debentures,, and a default arise
in connection with a guaranteed
issue
outstanding
in
important
centers.
The debenture method
wide variety of guaranteed
would have the further advantage
to the Bank's man¬
of flexibility
the
agement in
handling of the
Bank's debt. Provisions as to, call
privileges, with appropriate prices,
included
could
be
tures
which
in the
deben¬
the
enable
would
Barik's management to reduce
cost
if
financing
of
the
the
oppor¬
tunity to refund debentures arose.
The Bank can, of course, make
,
Liability of Stockholders
Ultimate
be
capital calls to repay debentures
in the case of default of under¬
as
Trust Investments
Undoubtedly in most states sup¬
plementary legislation will be re¬
quired to 'constitute the deben¬
tures and guaranteed obligations
investments
legal
funds
trust
•
for.
savings,
insurance
port¬
attempt to
position
the Bank's obligations on a par
folios.
Congress
establish
of
and
the
may
investment
with those of instrumentalities of
the United States Government and
week; being about
the
ing
below
a year
30 %
ago.
currently coming to
glowing terms of the
great progress on all fronts.
Reports
hand tell in
war's
tuses. We shall have to
await de¬
velopments in these regards. Ob¬
viously to establish the accept¬
ability of the Bank's obligations,
debentures and guarantees, in the
American
markets steps should
be
taken
to
qualify such obliga¬
legal investments for in¬
portfolios, savings banks
and trust funds. Similar precau¬
tions
as
surance
tions
be advisable
may
in other
An
important factor bearing on
the market position
the
of
tures
Bank
of the deben¬
and
its
Iron
"The
conclusion, if our Congress,
In
parliaments, and govern¬
the Bank, as pro¬
ments approve
posed,
it
will
and
United
be
the
and
launched with
of
Nations
endorsement
Allied
equipped with substantial funds,
prepared to make loans which the
capital markets won't undertake
on equal terms, with all available
collateral and guarantees and the
of the debtor to world
The likelihood of the
fulfillment by sovereign nations
of their individual commitments to
the Bank, irrespective of the de¬
faults of debtors or any associated
subscriber country, will not be
exposure
attention.
kets' appraisal of
prospec-
ligations.
the Bank's ob¬
of
week.
the
in
Age,"
for
totaled
and
Birmingham,
This
the Associa¬
ank
Railroads
was an
increase of
16,756 cars, or 2.3% above the pre¬
Philadelphia,
Cleveland,
Wheeling,'and- Detroit areas-and
for the Eastern district, compris¬
The
cars,
American
for"
1945,
10,
ceding week this year and a de¬
Pittsburgh, Youngs-
Chicago,
freight
Feb.
ended
nounced.
Loading—Car-
revenue
755,436
of
tion
town,.-
Cincinnati.
of
week
the
Other increases were re¬
flected in the
kwh!
178,200,000
Railroad Freight
loadings
sharply
last week. The greatest expansion
in raw steel output occurred at
Buffalo.
to
•
.
with 209,300,000 kwh.
the
corresponding week of
year, a decrease of 14.9%. ,.
•
last
steel ingot opera¬
result that
of 11.9%.
compared
current
its
1945,
11,
amounted
of the steel trade, with
summary
Feb.
crease
Western
of 37,745 cars, or
crease
corresponding
Compared with
the
low
1944.
4.8% beweek of
a
similar
period of 1943, a decrease of 9,835
cars, or 1.3% is shown,
;
t
■
Interesting Railroad Facts—Thes
railroads of the U. S. handled the-
greatest volume of freight traffic
on record in 1944, in the amount
of 738 billion' ton miles, or an in¬
crease
of 1.5%
above 1943, the?
Association
of
American
Rail¬
roads
111
traffic
han¬
Passenger
reports.
1944
the greatest ever
was
dled by
the roads in any one year
billion passenger
and totaled 951/2
increase of nearly
9% above the preceding year/ Irt
miles,
an
or
1944 the carriers moved an aver¬
of
age
1,142
tons of freight per
in train, the highest on record. Rev¬
received
averaged
0.945
the enue
cents for hailing a ton of freight
mills, reports "The Iron Age" this
present a difficult problem
shipping finished steel out of
week.
ing
past
the
have
two
doubled that
weeks orders
of shipments,
according to one major steel pro¬
ducer. Current emphasis in order
is
volume
on
steel
finished
use
mile in
one
j
improved war situation in
Europe has caused no dwindling
in the flood of new orders/'Dur¬
The
sheets, rails, semi¬
and tin plate, and
of directives to ob¬
1944, compared with
revenue
erage
of
freight one
1
than
cent
1943.
*
This, it is pointed out,
results in last minute hurry-up
calls for material which can only
be satisfied by more WPB direc¬
magazine.
tives.
?.
-
Locomotive orders placed the'
past
week
comprised 500 for
France and 690 for Russia.
Re¬
•.-
ports are current that the French
order has been increased by 200
more
total
said, will
locomotives making a
of 700.
The Army, it is
purchase a substantial num¬
locomotives. These orders
resulted in the boiled tube deliv¬
also
ber of
ery
than
situation becoming tighter
at any time since war began.
Authorized
construction by
50, 50-ton flat
Illinois
Terminal
car
the WPB included
cars
for
Railroad.
the
Two orders
totaling 665,
Fuels
Administration, U. S. Department
in its latest report,
week
the
soft
of
production
total
in
coal
'
past
"
'
Coal Industry—The Solid
places
situation.
of the
years,
of the Interior,
order
each
in
and the average haul
of freight in 1944 was about 478
miles compared with 469 miles in
12
be the
promptly appears to
outstanding pattern in the
The av¬
for hailing a ton
mile has been less
1.116 cents 20 years ago.
tain material
.
other
output
system
kwh.
in
reports
192,900,000
ended
obligations
Exchange Commission registration
preparation of
Consolidated Edison Co. of New
York
Cleveland steel companies re¬
will be thc^
policy it pursues with regard to" port the biggest backlog since the
war began, opinion there holding
informing the public as to its ac¬
the number of small orders is im¬
tivities, loans, defaults, knowledge
pressive because many consumers
of economic and financial condi¬
are
hesitant about piling up too
tions in various countries, and its
much inventory, states the trade
own
affairs in particular.
anteed
overlooked in the financial mar¬
the
on
guar¬
exempt them from Securities arid
and
most items.
Most steel districts which had
been affected by weather condi¬
tions and freight embargoes have
seen their steel ingot rate expand¬
ed somewhat this week, reports
prices
increased
markets.
44
Debentures
Meat production like¬
dur¬
off slightly.
wise showed a mild decline
fanfare
obligations.
lying
ware¬
higher
district
also showed
some
improvement,
but in the case of St. Louis it
continued unchanged.
Even though raw steel output
has regained
some lost
ground,
this week, Pittsburgh reports that
a
car
shortage there will likely
default under one of the
loans
Bank's
the
these
absorb
to
ing
lying debtors occur. Small or no
variations in price of all outstand¬
might
left
and
quotations
houses
erately with production of the re¬
fined metal down and deliveries
method
a
prices and increases in some cate¬
gories are looked for soon. The
interim steel price increases an¬
nounced on Jan. U applied to mill
credit
different currencies are
debentures
in
ago.
Local distribution of electricity
tions for the country rose
copper
for
Reports tell of the OPA work¬
ing on a revision of warehouse
as
conduct stabilizing
should
of
stocks
contrast,
that
sponding weekly period one year
comparing
with 219,000,000 kwh. for the cor¬
responding week of 1944, or a de¬
the
tightening of supply, Dun & Bradstreet noted, took place in many
of the commonly used- chemicals.
1945, was
the corre¬
10,
pig iron -ceiling prices since
price control began and when the
pig iron schedule was issued on
June 24, 1941/
.
in
for
output
hike
the
Output for the
Feb.
below
0.6%
accumu¬
overall
first
the
is
crease
of
because
ended
week
in
kwh.
4,538,552,000
preceding week.
material costs/ The in-
raw
re¬
sharply soared to 80,000,000 lbs. a
month.
In
addition, a further
In
lated
recent weeks have declined mod¬
the local currency
ing
sheet
aluminum
as
difficult
it
of
borrower may be made
when defaults
war
from
especially
be
standing is concerned and would
transactions in
not with¬
in the normal field of operations
of
the International
Bank and
that certain changes in the Bretton Woods Final Act proposals
would have to be made to em¬
power the bank to undertake such
loans and operations. At Bretton
Woods it was conceded that, in
special cases, the powers of the
Bank could be interpreted as not
excluding stabilization loans.
In
general the loaning powers of the
Bank are-very broad. Presumably
any huge undertaking, such as the
development of the Amazon val¬
ley, international highway sys¬
tems, reclamation and irrigation,
or
other projects, would have to
industries
Miscellaneous
flected the increasing demands
expected to give some relief
iron producers,
that the
output of electricity decreased to>
approximately 4,505.269,000 kwh.
in the week ended Feb. 10, 1945,
the smaller furnaces which found
all
of vary only as to coupon rate and
by the maturity. Generally speaking, all
International Bank but such loans tranches of debentures issued in
would be exceptional and to meet different markets and currencies,
unusual or emergency conditions. should follow the same practice
It
is
the
generally
accepted and contain the same general fea¬
opinion, also, that loans to sta¬ tures. The debenture method of
bilize currencies, to furnish gold financing would demonstrate its
reserves to central banks, and to
superiority to the guaranty
Loans in
a
week were finally
permitted to raise the price of all
grades, except charcoal, $1 a ton
on the base price.
The ruling by
pig
Electric Production—The Edison
Electric Institute reports
in 23 cities outside of New
York as reported by Dun & Brad-
last
-tons
1,750,000 tons one year"
ago.
ducers the past
14 is
1,673,900
with
pared
week and
pro¬
of less than 1% over
the week previous.
Bank clear¬
.
rower, or
iron
Industry—Pig
Steel
•
OPA which became effective Feb.
ings
19,
against 155.54 a week ago.
as
Steel
and
Iron
announced last Tuesday
ity for the
closed the week at 158.24
average
American
The
industrial stock price
Dow-Jones
off in output
for
obligations
cars
the
while electric kilowatt pro¬
duction showed a slight tapering
despite
Market Position
Guaranteed
in
increased
they
cars,
be
der
months.
for car-loadings of revenue
from four to five
freight,
the
While
deliveries
back
pushing
forces,
armed
the
of
branches
various
point
in
in
shipments
Backlogs too, have
in the
federal
government, or its national bank,
would be required. The amount of
Institute
partment.
was
com¬
the
other usual arrangements,
all
guaranty of the Austrian
ahead slightly the past week following
recessions of previous weeks induced by stormy weather and diffi¬
culties encountered in transportation. Manpower shortages were re¬
Industrial output moved
.
income from interest and
for Russia were
cars
placed by the War Department in
addition to orders for 500, 40-ton
-
dump cars placed by the same de¬
by call may be used freely by the
to
satisfy obligations
in
Bank
the
any,
The State of Trade
000,000.
Any currencies held or acquired
other currencies,
tank
40-ton
further $1,300,-
a
859
FINANCIAL CHRONICLE
THE COMMERCIAL &
Number 4362
161
ended Feb.
10,
1945, at 12,185,000 net tons, an in¬
crease
of 895,000 tons, or 7.9%*
previous. Produc¬
corresponding week o£
above the week
tion in the
amounted
1944
to
12,959,Q0() net
tons.
Bureaii
According to the U. S.
output of Pennsylvania
anthracite
for the week
ended
of Mines,
Feb.
10,
1945,
was
estimated at
1,117,000 tons, an increase oL275,000
tons, or 32.7% over
the'pre¬
week.
When - compared
corresponding week irt
1944 a decrease of 307,000 tops, or
21.6% is reflected.
Beehive
coke
for
the
week
ceding
with
the
ended
Feb.
increase of
previous
10,
1945, showed
an
20,600 tons above the
but was 37,200
for the similar .week
week,
tons less than
of 1944.
Crude
Oil
Production
—
Daily
crude oil produc¬
tion for the week ended Feb. 10,
as
estimated by the American
Petroleum Institute, was 4,728,800
average
gross
(Continued on page
8641)
THE COMMERCIAL & FINANCIAL CHRONICLE
860
N. Y. Chamber
The Financial Situation
been welcome in many quar¬
ters.
of
Some
-
difficult to avoid the
has that
doubt
without
that
and
in these matters—
enthusiasm
the
eyes
upon
are
some
But
deep;/uneasiness, for
which there appeared to us
moment at least to have been
to be real ground a week or
carried over to the other parts
more
ago,
seems less war¬
of the Yalta pronouncement.
ranted now as second thoughts
It was not long, however, be¬
are
opening the eyes of the
fore thoughtful observers be¬
public. What is not altogether
gan to analyze, to compare
certain is what the outcome
and to ask questions.
They of all this is to be in terms
are still doing so-—and it may
of attitudes toward the vari¬
be that
a
number of influen¬
figures,
for example
as
ex-President
rather
Hoover,
entanglements
international
which the
President—and
a
post-war
good many
they had taken more
others,
for that
matter—
time for consideration before
would have the people of this
giving full endorsement on
country enter.
It has been
strength of official pro¬ clear
enough, of course, that
nouncements which obviously
the President, shrewd in such
do not tell all, which bristle
matters, as he certainly is, has
with
innate inconsistencies,
been trying to make full use
which certainly do not re¬
of the "favorable" reception
move
the causes of i earlier
wish
of the Yalta activities for the
disquiet and disappointment
purpose of pressing Congress
among the rank and file of
for action on the International
the American people about
Fund and Bank proposals. It
post-war settlements and pol¬
would not be surprising—un¬
icies, and which are open at
less there is a further and
so
many points to the most
quite evident cooling off. of
serious objection.
the public toward Yalta—to
Atlantic Charter Twaddle
find him presently tying in
We hope it is no longer nec¬ some of the other programs
essary to call attention to the he wants with respect to post¬
fact
that
about
assurances
war
international relations.
"full
If the President is trying to
agreement" among the
conferees, references to the give the impression somehow
"principles of the Atlantic that our agreement at this
Charter," expressions of de¬ time to enter into these queer
termination of all to prevent
wars in the future, and all the
rest of the
same
sort, do
ex¬
financial schemes
the
so-called
Charter which
Atlantic
undertook
to
bills
of his
anti-discrimina¬
fomenting "the pos¬
sibility of race riot," Julian S.
Myrick, Chairman of the Public
as
Commerce, on Feb. 11 sent a let¬
ter to members of the New York
Legislature and Governor Dewey
urging the defeat of the measures.
The
letter
cited
eleven
why the Chamber, which went on
record in opposition to the pro¬
posed .bills at its monthly meeting
Feb.
on
1, believes such legislation
be injurious to the best in¬
would
terests of New York State and the
welfare of its citizens.
these
the fol¬
and
can
show
no
indication
suchi
law
a
would
en¬
business
from
New
York State and deter outside in¬
dustries
from
locating
'
the
in
state.
.
"That
it
approach
open
an
blackmail
for
by
agitators, applicants for jobs,
and disgruntled employees.
from
us.
:
unwise, and the leaders of the before
United
Nations
would
be
quite unwise, to permit natu¬
quite
well-warranted anger to blind
ral and often doubtless
them
to the fact
that treat-
menj: of the German nation
and the German
the
in
in the
war
the
people after
way described
Yalta pronouncement
would, if followed literally,
create many more problems
than: it
courses
would
solve.
him
eliminate
the
rather
evils
than
stitutionality of the proposed leg¬
islation was open to serious ques¬
tion" because it would take from
the
employer the civil right and
liberty of choice to enter into
contracts for the conduct
proper
which has been
amendment
stitution.
the
the
to
fourteenth
Con¬
Federal
.
-■BOn
The
ban
business
Finland,
and
with
Poland and other Baltic
which
^reas
commercial
on
communications
are
longer under
no
German domination, was lifted on
Feb. 15 by the Treasury Depart¬
ment which stated that "this
tion
coincided
tion
of
with
the
ac¬
restora¬
postal service with these
starve
of
the
or
leave
be fed
United
difficult
them
point to
no par¬
tions with these
mitted
areas are
this
at
to
tions
instructions
actions."
ment
gory of
to
believe
of
banldng and lending which
lasting
peace—or that
any of the
countries concerned, certainly
not xhe United States, would
very; long adhere to any such
would demand further exten¬
line Of action. It is, moreover,
Ther programs close
sive
c
No
dent
retributions from
ir
c'^osjes to press these
inter iv
ures,
us.
-<tter when the Presi¬
>nal financial
meas-
once
will
the
Federal
in
well
Reserve
established,
amount
of
"confi¬
that
said
and
notes
and
the
be
the
still
enemy
'enemy terri¬
contained
in
the
General Ruling. Treasury officials
resumption of com¬
munications with other recently
liberated
areas
and
heart
is
under
further
now
that
in the
Banks would be
law
the
at
of
Reserve
eligible under the
collateral for Federal Re¬
as
notes.
By this process mem¬
promissory notes secured
by United States Government ob¬
The statement of Senator Wag¬ ligations would be substituted for
such
ner, which has just come to us,
obligations
themselves
as
follows in full:
collateral held by the Federal Re¬
^
serve Agents against outstanding
Reduction in Reserve Ratio and
Federal Reserve notes.
No public
Renewal of Authority to Pledge
interest would be served, but in
U. S Government Obligations
the process the market for U. S.
as Collateral
for Federal
Government war obligations
Reserve Notes
would
be
disrupted at a time
The
bill
introduced
herewith, when the Treasury must still raise
would accomplish the
vast
sums
to
finance the war.
It
following
purposes:
(1) Extend indefinitely is clear that this must not occur
the authority of the Federal Re¬ and that, therefore, .the power to
serve Banks to pledge U. S. Gov¬
pledge Government securities
ernment securities against
Fed¬ against
Federal Reserve notes
eral Reserve notes issued by the must be continued.
Federal Reserve Agents. Existing
There is nothing to be gained
authority expires June 30, 1945; in placing a time limit on the ex¬
and (2) Reduce the requirements
tension of this authority—-since it
of reserves to be held by Federal
is impossible to foresee at present
notes
40%
is
or
25%
makes
no
serve
ber bank
con¬
an¬
reducing the high
requirements of the Fed¬
eral Reserve Banks
by
the
President
interna¬
Securities
serve
was
mentioned
his
in
against
Notes.
We should not for
a mo¬
permit ourselves even
half consciously to think of
trying to buy the friendship
or
support of any country or
group of countries by the
adoption of programs of this
sort which are
inherently un¬
sound and not helpful.
Federal
granted
to
Board in
February, 1932, at
when
the
Federal
gold stock
our
Re¬
This power was first
was
Reserve
a
time
low and
the supply of paper eligible as col¬
lateral
small.
The
power
was
granted for the purpose of en¬
abling the Federal Reserve Banks
to engage in open market opera¬
to make it consistent with
as
collateral
against Federal Reserve
gold certificates, commer¬
Reduction
member bank col¬
of
caused
Ratio.
Reserve
Conditions arising out
have
the
of the war
ratio
reserve
of
Federal Reserve Banks to decline
from 91%. at the end of 1941, soon
after
the war, to
If devel¬
entry into
our
49% at the end of 1944.
months the
recent
almost
the
at the
continue
opments
to
the legal
of
end
rate of
ratio will fall
minimum by
present calendar
the
If gold export or currency
year.
withdrawals
greater
both
or
in
than
1944,
should
minimum will be reached
be
legal
the
sooner.
The
following table shows the fac¬
tors in the situation, together with
tions
which were
necessary
at hypothetical projections through
that time in order to help banks 1945 based on probable trends of
get out of debt and to establish currency, deposit, and gold moveconditions in' the money market ments:
tional
field, they should he
considered and a p p r a i s e d
strictly upon their own mer¬
when, if ever, conditions will be
The need for
reserve
form
will remain subject to
restrictions
banks
ties.
areas
of
The promissory notes
member
practical difference."
Depart¬
the
other
and
order to replenish their
reserves.
whether
back of the
gold
Pledging of U. S. Government
control
amount from the Federal Reserve
Banks in
Wagner
'enemy territory.' German
the
his
for
cial paper, and
lateral notes.
to
stated that the
to
available
sale."
notes to
property trans¬
from
continue to
tory'
be
more
equivalent amount of funds
the market,
and member
banks would have to borrow this
an
from
earmarked
or
cate¬
territories
under
its.
indeed
withdrawn
Budget
Message transmitted to the Con¬
gress on January 3, 1945.
concerned
ment
that this is the road to
war
either
deposits, to a uniform minimum
gold certificates against
combined note and deposit liabili¬
ing No. 11, removing the liberated
areas
into
get more should we go
these post-war schemes
of
market;
of 25% in
amendment to General Rul¬
an
should
is
we
payment for them would take out
here, on account
restrictions,
and
have
public interest to revert to
the
provision of
law, enacted
nearly 30 years ago, which limited
Treasury
took
work is that the banks would sell
commodities
the
Feb. 16 further said:
on
by the people
It
or
The
"Today's action
States.
that
have sold
circulation and 35% in gold certi¬
ficates or lawful money against
authorizations
or
effect financial
ticular
e n c e
that
such
containing
or
manner
against Federal Reserve notes in
communica¬
areas
possibly as much as 15
by the end of the year.
in which this would
billions
not per¬
time.
constituting
to
e
cash basis. Coun¬
Reserve Banks from their present
level of 40% in gold certificates
However, tele-communica¬
areas.
nouncements will be made later."
can
v i d
a
able to buy goods
is
by
billion
10
as
the securities in the open
the
sideration
doctrines worth mention¬
re¬
to the United States have not been
Silver Shirt organizations.'"
business,
banks to borrow as much
dollarsv from the
Federal Reserve Banks at this
sary for
has
reserves
The
on
the
ment securities to make it neces¬
"j
have been
Mr. Myrick said that the "con¬
his
it,
time and
dence
of
Federal Reserve
obliged to sell a
large enough volume of Govern¬
Feb.
on
ex¬
pledge U.
imperative.
is
Banks would be
country's exports have been on
Lend-Lease, while our imports
with the Ku Klux Klan and the
protected
Without
ac¬
flected the fact that most of this
Mr.
in this conflict and have not
new
Washington-
"Reduction of
associated
always
played it, and as we have al¬
ways had every reason to ex¬
pect him to play it. We should
have been foolish to hope for
any other course of action
from him. The point is merely
that we have given of our
treasure and are giving of our
blood more than generously
makp slaves of the German ing—and
or
have
as
yet the assurance of any
Such concessions to our strange and
of action would either
millions
Yalta,
very
from
12, added:
billion, the
Governments
S.
war," Senator Wagner,
according to Associated Press
an
tension of the power to
"conditions. arising
to
out¬
notes
Reserve
Federal
amount of 16.4
an
at the end
at the end of last
will
foment,
of
these facts without assistance
a
due
year
on
amount of 21.7 bil¬
lion dollars and deposit liabilities
of the Federal Reserve Banks in
Noting that the Reserve Ratio
to
and
he and those who have gone
them,
the real victor at
but there is
standing in
tend
intolerance
ple that they would be quite
of
was
Reserve agents. Existing authority
expires June 30.
has declined from 91%
will expire
prevailing today,
conditions
with
gold against the time when goods
for
In
against Federal
by Federal
power was re¬
time to time; unless
1945.
Reserve notes issued
fuel
It may or not be necessary
to remind the American
peo¬
that
ernment securities
nish
these
clear
now
people, or many
are awakening to
action
June 30,
The
taken it
is
nitely the authority of the Federal
the
at
was
depression.
Reserve banks to pledge U. S. Gov¬
"That the employment of un¬
desirable persons would 'fur¬
send
is
newed from
which
.
up
licenses
It
His bill also would extend indefi¬
tries
would
large ele¬
ment of truth in the charge.
We do not mean to say that
Mr.
Stalin
is
particularly
blameworthy in the matter,
He is "playing the game" as
them.
ness
counts
existing
of busi¬
depth of
favorable to the recovery
could not get jobs elsewhere, to
flock to New York to get em¬
"That it would tend to drive
•
de-^
against
money
Senator Wagner is Chairman of
the Senate Banking Committee.
out of the
Treasury
will still be required to
the American
lawful
posits.
courage an undesirable element
from
without
the
state, who
are
likely to obtain it
guarantee to other peoples in the future.
It may be
much that this very confer¬ wormwood and
gall to hear
ence
agrees
to take from Hitler's agents say that Stalin
other
ployment.
;
•
The present requirement is 40% in gold certificates against Fed¬
eral Reserve notes in circulation and 35% in gold certificates or
of 1941 to 49%
lowing:
"That
Requirements From 4@ to 25%
York.
Prominent
reasons were
for, or would be Lift Restrictions on
helpful in assuring the coop¬ Communications to Baltic
that he is
Reserve
Legislation to reduce minimum required reserves of Federal Re¬
serve Banks, to 25% of combined note and
deposit liabilities was in¬
troduced on Feb. 12 by Senator Robert F. Wagner (Democrat) of New
reasons
necessary
actly nothing to alter the eration of Russia and the
plight of the Baltic countries, other countries in his inter¬
or of Poland, or to
bring other national plans, the obvious
policies apparently agreed and ready answer is that he
upon into any reasonable line is getting no such cooperation
with
tion
among
ous
tial
Ives Commission
Health and Welfare Committee of
the New York State Chamber of
What Indirect Effects?
concerning gains in the mili¬
tary situation appear for a
Opposing the enactment of the
suspicion
being
of the
great German industries.
greedy
fastened
Opposed Wagner Introduces Bill to Reduce
Anti-Discrimination Bill
(Continued from first page)
assurance
Thursday, February 22, 1945
;•'
v':-
:■■■
Pederal Reserve Bank— \
*
''
Dec. 31, '41
^Projections-
'
Dec.
31, '44
Dec. 31, '45
June 30, '45
(000 omitted)
Reserves
14,700,000
$18,700,000
18,400,000
17,400,000
18,400,000
notes
outstanding--.----..-.
8,200,000
21,700,000
23,700.000
26,700,000
Liabilities
requiring reserves—
$22,900,000
$38,100,000
$41,100,000
$45,100,000
Deposits
P.
R.
Reserve
————
.
__
ratio
—-
—'
—„
—
$20,800,000
90.8%
It will be seen that the decline
in the
to
a
reserve
ratio has been due
reduction in Federal Reserve
Bank
reserves
and to increases in
Federal Reserve note and deposit
liabilities.
Reduction of reserves
has reflected the fact that most of
this
on
$18,200,000
49.0%
;
$17,700,000
44.3%
39.2%
country's exports have been
lend-lease, while our imports
have been
on
tries
have
that
a
cash basis.
sold
Coun¬
commodities
to the United States have not been
able
count
to
buy
of
goods
war
here, on ac¬
restrictions, and
Volume
s
NostSeqiiitp
conduct of the
In
war.
original
were
(1)
essential to the
are
important industries
some
holders,
sion
in
looming
of
ounce
bat.
I
ages
our
up
our
mean
Reserve
Bank
the pub¬
assure
least
at
was
40%
which
Re¬
then
were
be¬
first
is
purpose
no
longer
compelling since gold redemption
is now not permitted for domestic
and gold
use,
be exported only
can
While
license.
under
"The inevitable result of this failure of American
war.
lawful
back of the Federal
notes
The
only one remedy q
to this situation—that of adopting national service
legislation to keep men at their war tasks.
of the
or
ing introduced for the first time.
"It has become clear that there is
democracy is
there
gold
serve
Banks to
gold
Federal
of
that
re¬
and note
limit the expan¬
to
the
coun¬
try's aggregate gold reserves are
ample to meet any conceivable
foreign demand, a reserve ratio
high enough to meet possible de¬
becoming apparent at this crisis
Shortages, deadly shortages, are now
before us at a moment when every
power should be thrown into the com¬
both shortages of weapons and short¬
now
mands for both domestic and for¬
Federal
longer appropriate
conditions.
The
purpose — limitation
of
Reserve Bank expansion
—is
relevant
eign
of manpower caused by the misplacement of
Our infantry will run short of its neces¬
is
use
under
replacements if the places of young men of
military age and fitness who are now working in
essential war jobs cannot be promptly filled by
available men who are older or not physically capa¬
ble of the job, of the fighting.
There is now no
legal means of effecting this necessary transposition.
sary
no
present
second
men.
not
at
expansion by the
essential
is
finance.
time when
a
Reserve Banks
war
confidence
Thirdly,
well
Reserve notes is
Federal
of
needs
the
to
es¬
and
whether
the
amount of gold back of the notes
is 40% or 25% makes no practical
tablished,
that the passage of this measure
its main principles unchanged
ments.
Army and the Navy to supply critical shortages
in our essential industrial plants and to help fill the
places of young, vigorous workers who may be then
sent as replacements to battle-weary troops.—Henry
L. Stimson, Secretary of War.
A reduction to 25%
such
meet
to
for
currency
for
reserve
banks
Reserve Banks
the
demands
additional
the
by
public
balances
and
The
supply and the bank de¬
posit structure could nearly dou¬
ble
before
the
legal
minimum
would be reached.
bill
provides for elimina¬
tion of the distinction made in the
The
an
present law between reserves re¬
apparently inevitable disinclination to be wholly
candid with the public.
None of these infirmities
would be cured by the legislation Mr. Stimson de¬
deposits both as to percentage and
as to composition
of the reserves.
Since the two liabilities are inter¬
from miscalculations and
mismanagement—and
convertible
mands.
against
against notes and
quired
option
the
at
of
the
the same requirements
should apply to both.
The pro¬
vision in the bill that legal re¬
serves should consist only of gold
issue of Feb. 8, page
withdrawn
either
have
ear¬
or
gold against the time
goods will once more be
when
Reserve Bank
Issue of Federal
in
their
form was
authorized
by
the
Emergency
Growth of Federal Reserve note
Banking Act of March 1933, and
circulation has been a part of the
the authority will expire when the
general
expansion of currency President declares that the emerg¬
which has accompanied war activ¬
ency is over.
The need for the
ity
in
every
country in the lower ratio
may continue beyond
notes
available for sale.
.
Congress to regulate the country's
monetary policy.
present
Expansion of both notes
that date.
Furthermore, the dif¬
and deposits has reflected growth
ference between Federal Reserve
of Government war expenditures,
notes and Federal Reserve Bank
enlargement of national money
notes gives rise to misunderstand¬
income, and advancement of pay¬
ing, and it would be simpler and
rolls and trade at higher prices.
less
confusing to the public if
So long as the Federal Reserve
world.
continue
Banks
to
part,
do their
they surely must, to assist
as
financ¬
in Government
Treasury
the
ing and in maintaining stable con¬
ditions in the market for U. S.
Government
securities,
these
Banks must not be restricted by
an
There
are
several ways to meet
which have
considered.
One
all
situation,
carefully
been
would
way
be
Bank
Reserve
be
to
issue
notes,
suspension
Federal
which
of
the
by
requirements
re¬
reserve
Board
Governors of the Federal
;
of
Reserve
which is-authorized by
law, and a third way would be a
System,
reduction of reserve requirements
such
the
Treasury,
bank
member
have
ments,
of currency
issuance
as
found
Other devices,
Congress.
by the
be
to
propriate.
or
by
reduction of
require¬
reserve
been
reviewed and
inadequate
or
inap¬
Reduction of the ratio
by law, which is proposed
in the
bill, is the most clear-cut method,
as
well
with
the
as
the
at
most
consistent
responsibility
a
of
the
Reserve
Reserve ratio that
to the
the
were
currency
It would be best
kind.
one
time like this to have
eral
Fed¬
a
indicated
Congress and to the people
of
amount
gold
certificates
held by the Reserve Banks against
total
deposit
and
note
lia¬
constitutes
whether the
controversy as to what
lawful
and
money,
Reserve
Federal
could,
Banks
if
their own notes
(Federal Reserve notes or Federal
minded,
so
use
Bank
Reserve
notes)
as
reserves
against their own deposits.
A
of
of
require¬
uniform
clean-cut
ment
gold certificate reserves
against both notes and
25%
deposits
the
to be
problem.
appears
solution of the
In conformity
with the proposed
reduction of the ratio to 25%
bill decreases
levels
the
of
best
the
proportionately the
ratio
which
at
the
imposition of the different penalty
rates provided in the law when
reserves are suspended
would be
prescribed.
bilities of all kinds.
The
of
quire no reserves, in place of Fed¬
eral Reserve notes; another way
would
all of
their
arbitrary reserve ratio.
the
Federal
eliminate
also
would
certificates
authority
in section
11(c)
of the Federal Reserve Act to
pend
sus¬
requirements does
to be the best method
reserve
"Journal
not appear
of
meeting the situation, because
the power was not designed for a
situation like the present
indefinite
of
sion
must
which is
duration.
for
be
a
Suspen¬
period not to
exceed
thirty days, renewable at
intervals of fifteen days.
It also
requires a penalty in the form of
a
progressive interest rate, to be
determined
by
the
Board,
and
added to
the discount rate of the
Federal
Reserve
time
like
the
Banks.
At
be
present,
rate
the
best
a
mum
bill
provides
direct reduction of the mini¬
ratio.
Preston
the
of
in
Such
an
action would
14 said
bureau Feb.
Washington
announced
Delano,
on
appointment of Eugene
S. Williams as District Chief Na¬
tional
Bank
Examiner
for the
Feb. 15 the
Eighth Federal Reserve District.
Louis, Mo., to succeed Robert
St.
Neill, retired.
Mr. Williams is a
native of Cape
Girardeau, Mo. He
became
an
Assistant
1930
Examiner in
Bank
National
and
its
from
was
promoted to
Examiner.
named
National Bank
In March, 1941, he was
Assistant
Chief
Bank Examiner in the
National
Washington
office,
been
time.
in which
serving
position he has
until
the
present
report
that
mittee
amendments recommended by the
House Judiciary Committee.
Ac¬
tually, the bill contains only the
enacting clause of (S. 340) and the
body of the legislation is the most
recent Walter bill (H. R. 1973).
brought the
the floor
to
measure
today thus described
its purposes:
"To
Technically, the measure which
was the McCarran-Ferguson
bill
(S. 340), which passed
the Senate two weeks ago, with
passed
that
declare
regulation
several
continued
the
taxation
and
the
by
insurance
the
of
States
business is in the
public interest;
and
more
to
assure
a
adequate
regulation of this business in the
States by suspending
the applica¬
tion of the Sherman and Clayton
for
acts
approximately
the
of
sions
tures.
two ses¬
Legisla¬
State
.
The Senate and House versions
will go
to
conference committee
a
of three members from each body
which will seek to reconcile the
Proponents of the bill urged im¬
mediate
that
of
ance
passage
the
the
on
grounds
Supreme Court decision
holding that insur¬
June
last
is in interstate commerce had
legislative di¬
would pre¬
vent many States from collecting
taxes from
insurance
companies
rection from Congress
ders.
Congressman Francis E. Walter
(Dem., Pa.), who steered the bill,
admitted
measure
"The
that
floor
the
on
the
was a "compromise."
companies, however, are
loss
a
.
.
not
does
.
repeal the Sherman and Clayton
but
will
opportunity
have
been granted
for the States to per¬
mit agreements and contracts by
insurance companies which might
otherwise be in violation of the
acts."
Sherman and Clayton
where
know
to
III, Bankers Ass'n
Cancels Convention
their bor¬
doing business within
at
noted," the report
this
"that
in "confusion and chaos"
and because lack of
:
"It should be
added,
acts
differences.
they
The 55th Annual Convention of
the
Illinois
has
been
Association
Bankers
had
Plans
cancelled.
been made to hold this meeting
in
Missouri, May 2, 3 and
4.
In keeping with the pledge
made by the bankers of Illinois on
December 8,1941, that they would
St. Louis,
"Person¬
ally I would prefer the bill which
passed
the House last session,
cooperate
which affirmed that it
conclusion, four weeks ago, Floyd
M. Condit, President of the As¬
stand," Mr. Walter said.
was
never
the intent of Congress to have the
Sherman and Clayton acts apply
the
to
insurance
bill
this
to
just
are
we
moratorium
business.
Under
asking
a
permit the States
to
conform
to the Supreme Court decision."
Congressman Clarence E. Han¬
adjust
their
laws
and John W.
(Rep., N. Y.)
cock
to
Gwynne (Rep., Iowa) added that
Congress
must
pass
legislation
maintaining the right of States to
tax
insurance
companies.
Mr.
Gwynne estimated such taxes pro¬
duced $120,000,000 revenue for all
the States annually.
Principal opposition came from
Congressmen Clinton P. Anderson
(Dem., N. M.) and Emmanuel Celler (Dem., N.Y.), who asserted
that the bill was not acceptable to
the Department of
Justice and that
had not been
indorsed by representatives of the
insurance industry or the National
the
bill
presented
Association of Insurance Commis¬
A motion by
J.
Cochran
Committee
Representative John
to
instructions
with
section
the
Mo.) to re¬
the Judiciary
(Dem.,
bill
the
commit
delete
surance
from
Federal
Trade
to
exempting in¬
provisions
of
Commission
Act
the
was
involv¬
boycott, coercion or intimi¬
dation, soecial advices to the New
York "Times" from Washington
ing
Feb. 14 said in part:
House
measure
made
im¬
portant revisions in the previously
passed Senate version, striking out
a
Senate
olied,
as
section
which
had
im-
its House critics read it,
that the States could expect Con¬
gress to come
forward with regu¬
The remaining imnortant varia¬
tion
was
would
that
make
the
House
version
the' Sherman
a
National
First
Beards-
at
Bank
town, Illinois, announced that the
which
Dinner
held
been
Conference
Mid-Winter
annual
and
Chicago,
House,
;
The association's advices of Feb.
further
13
Condit
as
Council
reported quoted Mr.
saying:
"Yesterday the
Administration
of
a
should be abandoned and that the
the
the
of
officers
with
Treasurer,
Association,
of
exception
the
should continue in office until the
will
which
Convention
held
be
in
May, 1946. The Treasurer's of¬
fice expires by fiat on May 31 of
this year and will be filled by an
election to be held by the Council
time.'"
at that
The
of
officers
remain
will
Association
the
in
their
offices
Condit,
First National Bank, Beardstown,
111.;
Vice-President
Barney
J.
Ghiglieri, Citizens National Bank,
Toluca, 111., and Secretary Harry
President Floyd M.
are;
C. Hausman.
and
N. Y,
Savings Banks
Gain in Deposits
January net gains of 37,976 in ac¬
counts
and $87,920,548 in salvings
deposits of the 131 New jYork
State savings banks were reported
on Feb.
13 by the Savings ^anks
Association, which states:
brings the total niimber
6,443.153 and total
deposits to $7,204,128,939 as of the
end of last month, exclusive* of
"This
of accounts to
Christmas
Clubs
otheh spe¬
accounts.
uary
ago,
a
year
accounts
Growth
the
increased
in
in New York
version
of
was
the
In
$52,810,602.
in
that
Deposits
State savings banks
billion
case
mark last December, as the
mora-
Jan¬
of
32,882.
by
crossed
a
:
number
deposits
companies
1948, while, in the
of the Sherman Act, the Sen¬
insurance
and
cial-purpose
until January,
a
at
special meeting decided that the
plans for the annual Convention
tive
proposed
been
had
8,
February
cancelled.
have
to
was
Palmer
the
at
month
ate
in
the
of
President
and
sociation
Clayton Anti-Trust Acts inopera¬
over
wholeheartedly
Act
defeated 171 to 62.
The
to
war
possible to bring this
speedy and successful
way
every
who
sioners.
latory legislation.
later
only until June 1, 1947.
of the House com¬
The
part:
would not apply to cases
Currency,
procedure.
Consequently, the
for
Comptroller
a
when dis¬
charges must fit into
the general rate policy adopted
for war financing, this would not
count
Commerce"
of
Pointing out that the exemption
Examiner for St. Louis
January, 1048
vote of 315 to 58, passed the bill
torium
651.
and the Robinson-Patman
Williams, Chief Nat'l Bank
a
Regarding the House action on
the bill, advices to the New York
owners,
marked
Feb. 14, by
on
providing for the exemption of insurance business from the Sherman
and Clayton Anti-Trust Acts until Jan. 1, 1948.
A similar bill was
approved by the Senate on Jan. 25, that measure, however, making
June 1, 1947, the effective date of, exemption from the Sherman Act,
and Jan. 1, 1948, the exemption date' as to the Clayton Act.
The
Senate action was noted in our<£
•
membei
by
likely to occur.
are
as
It
contingencies.
currency
around.They spring
citizens
all
enable
would
"Shortages," so far as they actually exist, are not
the result of lack of authority on the part of govern¬
order
foreseeable
all
this matter.
to
is proposed
because it would be sufficient for
Few question Mr. Stimson's sincerity or, in gen¬
eral, his ability, but many doubt his judgment in
ment
caused all
have
belligerents to reduce or abolish
central
bank
reserve
require¬
by the Senate with
is needed by the
House,
resulted
conditions
War
to you, as the pledge of my official duty,
From Trust Acts Until
The
in
difference.
"I say
Pass Bill to Exempt Insurance Business
i
depositors
(2)
credit, and (3) to
lic
first
adequate
to assure
by
money
sji
sis
*•
purposes
meet demands for
actually amounted to 90% per
year.
By every means of public exhortation the
nation's leaders have stressed the importance of
having the workers stay on essential jobs. They
have only been partially successful.
was
Congress.
The
^ of
the
ratio
for the Reserve
sources
this turnover has
which have* I
ratio
established by the
beginning of this war, there has
a constant and alarming turnover
of workers in industries which
conditions
changes in
occurred since the
"Ever since the
been in America
861
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4362
161
seven
dollar
result
15.4% gain for the year."
THE COMMERCIAL & FINANCIAL CHRONICLE
862
Thursday, February 22, 1945
Mlretton Woods Agreements Act" Asks Delay of |§
International Fund
Introduced Jn Congress |
(Continued from page 858)
New York State Bankers Find Same Faults With the Stabilization Set
'
the Bank from time to time when
serve as
payments are required to be made
For the purpose of
rectors
for the
purposes of the* to the Bank.
respective Articles of Agreement. making these payments, the Sec¬
The term of office of each, shall retary of the Treasury is author¬
the
of
tor
Bank, who shall also
provisional executive di¬
be two years, but they shall con¬
tinue in office until their succes¬
Each execu¬
appointed.
sors
are
tive
director
ized to
use as
action
not
alternates shall be eligible to ap¬
which
executive di¬
under
pointment either
or
as
No
their alternates.
as
'person shall be entitled to receive
salary
,any
from
ices
as
a
rector,
other compensation
or
United
the
for
States
serv¬
executive di¬
governor,
Second
amended,
the
and
securities
Act
that
such
include
Act,
as
purposes
for
Bond
Liberty
be issued
extended to
may
are
Payment
purpose.
this subsection of the sub¬
under
scription of the United States to
the Fund
the Bank and repay¬
or
thereof shall be treated as
ments
the
of
transactions
public-debt
alternate.
or
proceeds of any securi¬
issued under the
hereafter
ties
United States.
Reports
•to
The President from time
less frequently
months,
shall
.transmit to the Congress a report
•with respect to the participation
time,
•than
•of
but
not
! six
every
the United
States
'
y
Fund
the
in
and the Bank.
For the purpose of keep¬
minimum the cost to the
United States of participation in
the Fund and the Bank, the Sec¬
(c)
ing to
a
retary of the Treasury, after pay¬
of the United
Fund, and any part
subscription of the United
ing the subscription
States
the
to
of the
■
States to the Bank
Certain Acts Not to Be Taken
t
Sec. 5.
Unless Congress
authorizes such
President
or
7
Bank, is authorized and di¬
special notes of the
rected to issue
United
States
from
time
time
to
par
(a) request or con¬
to
the Fund and the Bank in
of
the quota
States under article
III, section 2, of the Articles of
-Agreement of the Fund; (b) pro¬
pose or agree to any change in the
and to deliver such
notes
ex¬
change for dollars to the extent
permitted by the respective Arti¬
cles of Agreement.
The special
notes provided for in this subsec¬
tion shall be issued under the
au¬
par
value of the United States dol¬
thority and subject to the provi¬
lar
under article
sions of the Second
IV, section 5, or
article
XX, section 4, of the Ar¬
Agreement of the Fund,
or approve any general change in
par values under article IV, sec¬
tion 7; (c) subscribe to additional
shares of stock under article II,
•section 3, of the Articles of Agree¬
ticles
of
ment of the
Bank; (d). accept any
amendment under article XVII of
the Articles of Agreements of the
Fund or article VIII of the Arti¬
cles
of
■(e)
Agreement of the Bank;
any loan to. the Fund
make
the Bank.
or
law
;
of the
as
change in
any
of the United
II, section
the
behalf
on
United States
sent to
by law
person-
any
required to be
article
under
(!), of the Articles of Agreements
action, neither the
nor
shall
agency
made
Authorization
Without
Unless Congress by
authorizes
such
action,
no
.governor or alternate "appointed to
United States shall
.represent the
•vote
for
:stock
increase
an
of
the'Bank
of
capital
article
under
•II,' section; 2, of the Articles
Agreement of the Bank.
of
Par Value of United States Dollar
!
Sec. 6.
When the United States
is requested by the Fund to com¬
municate
.United
the
dollar,
the
of
value
par
States
other
than
15
such
par
5/21
of
grains
gold nine-tenths fine.
7.
Any
Federal
Reserve
bank which is requested to do so
by the Fund
or
its fiscal
agent, and the Board of Governors
of the
Federal
Reserve System,
shall supervise and direct the car¬
rying out of these functions by the
Federal
Reserve
or
special
8.
(a)
banks.
;
;v
.
Subsection
(c)
of
section 10 of the Gold Reserve Act
.of 1934, as amended (U. S. C., title
31,
as
sec.
822a), is amended to read
follows:
"(g) The Secretary of the Treas¬
ury is directed to use $1,800,000,-
directed
sub
to
scription
pay
of
part
of the United
the
sub¬
States
to
the International Monetary Fund;
and
any
repayment thereof
shall
.be covered into the Treasury as a
miscellaneous receipt."
(b) The Secretary of the Treas¬
ury is authorized to pay the bal¬
ance
of
$950,000,000
of
the
scription of the United States to
(a)
scription
and
to
pay
of the United
the
issued
and
under
this
bear
interest, shall be nonnegotiable, and shall be payable
no
demand
on
Bank,
face
of
the
as
case
of
amount
sued
the
to
the
Fund
The
be.
may
special
Fund
the
or
is¬
notes
the
under
au¬
thority of this subsection and out¬
standing at
matters of the New York
Feb. 15,
the
its views
lines
same
exceed
the
in
the
/aggregate
amount of the
ciation, which published its findings
on" Feb. 5, (see the "Chronicle"
650), the New York bankers' experts approve, in
general terms, the creation of an<$
1
•
International
Bank, but recom¬ tered, and maintains that the plan
Feb.
of
8,
mend
page
that
Monetary
the
Fund
pending
be
in
its
proposed operations.
a
adopted,
not
consideration of
set-up and its
full
a
alterations
International
postponement
of
It proposes
plan of
any
sub¬
States to
exchange : stabiliza¬
tion until economic stability and
domestic
stabilization
world be firmly
currency
throughout
the
The Report analyses
established.
in considerable detail the
specific
of the International
points out defects^and
shortcomings.
It stresses the di¬
provisions
and
Fund
vergent views of Lord Keynes, the
and those of the
representatives as por¬
tending difficulties to be encoun-
British delegate,
American
read
to
follows:
as
While any foreign gov¬
"Sec. 3.
both Of the
International Monetary Fund
of the International Bank for
Development,
and
this Act shall not
and
Re¬
apply to the sale
purchase of bonds, securities, or
other obligations of such govern¬
ment or any political subdivision
thereof or of any organization or
association acting fofor on behalf
of such .government or political
subdivision, or to the making of
any loan to such government, po¬
litical subdivison, organization, or
or
association."
For the purpose of any
any one
against the Fund or the Bank in
exceed
the
under
article
II, section 7
(i), of the Articles of Agreement
of the Bank.
'■
'
"V
'
,
Any payment made to the
(d)
Sec. 11.
States
or
its
by
or
with
accordance
brought
be
may
possessions
United
or
the
Articles
of
the Ar¬
ticles of Agreement of the Bank,
the Fund or the Bank, as the case
may be, shall be deemed to be an
inhabitant of the Federal judicial
district in which its principal of¬
Agreement of the Fund
in
the
United
States
is
lo¬
fice
Bank
cated, and any such action at law
or
in equity to which either the
distribution of
a
shall
Treasury
be
as
into
the
miscellaneous
re¬
covered
a
in¬
net
Fund
or
the Bank shall be
laws of the United
Obtaining
and
Sec.
So
9.
States is
the
long
Bank,
require at
ner
party
and
as
the
the United
President
time, in the
any
under
the
States, and the
shall have original jurisdiction of
member of the Fund
a
or
may
man¬
penalties
pro¬
any
When either the
such action.
Fund
or
Bank is
the
defendant
a
in any
such action, it may, at any
time before the trial thereof, re¬
action
such
move
from
State
a
vided in section 5 (b) of the Trad¬
court into the district court of the
ing
United States for the proper
With
amended
the
Enemy Act,
as
S. C., title 50 App.,
(U.
trict
by
dis¬
following the procedure
for
ticle
Status, Immunities and Privileges
VIII, section 5, of the Ar¬
ticles of Agreement of the Fund;
and
■
data
any
of
the
type
be required under
(b) of the Trading
may
section
With
5
the
amended,
judgment
Enemy
Act,
and
which
in
is
essential
United
The
New
Sec.
The
12.
provisions of ar¬
"An
prohibit financial transac-
stipulated
a
of
quantity
exports.
Equally there is
nothing to prevent other coun¬
tries from requiring us to take
.
.
their
as
our
however,
would
.
a
condition of
exports.'
To us„
such an arrangement
imports
receiving
,
be not only
to
seem
con¬
but also in direct violation
of the
provision which states that
shall, without ap¬
member
'no
Fund, impose re¬
the making of pay-f
transfers for current
the
proval of
strictions
committee,
which
merits
on
and
transactions.'
It
is
meeting of minds on this issue."
And the report adds: "The Plan
is presented in the United States
as
a
measure
for stabilizing ex¬
America it is looked upon as con¬
sistent with the
of
the
executive
com¬
change rates, but in Britain it is
presented as !a device/that con¬
templates flexibility ;of rates: In
gold standard, but
of
International
mittee
the
Fund
"the
that
remarks
com¬
estab¬
United
States
and
its
Terri¬
and
ceptance
possessions upon
of membership by
States
of,
in, and
the
the
Fund
Bank, respectively.
ac¬
the
estab¬
and
the
gold standard.
Lord Keynes goes
it
calls
and
further
the
precise
lishment of the Fund prior to the
opposite of the gold standard:
restoration of favorable underly¬
"For instead of maintaining the
principle that the internal value
ing
in
conditions
the
would
of
achievement
result
not
economic
stability or the elimination of ex¬
change controls. On the contrary,
to
would tend
believe the Fund
we
of
movement
controls
exchange
perpetuate
and other restrictions
on
the free
There
trade.
are
implications. of permanent ex¬
change controls running through¬
out the Fund in spite of the fact
that one of its proclaimed pur¬
poses is to eliminate them.
whether
doubt
guards
safe¬
the
adequate to insure the
are
of the Fund's resources.
use
The system of credits based upon
of
a
national currency should con¬
form
to
prescribed de jure
a
ex¬
value, it provides .that its
ternal
value
external
should
be
altered
if
necessary so as to conform towhatever de facto internal value
domestic
from
results
wh ich
policies,
shall
themselves
im¬
be
mune from criticism
by the Fund.
Indeed, it is made the duty of the
Fund to approve changes which
will have this effect. That is why
I say that
exact
these proposals are the
opposite of the gold stand¬
ard."
/
quotas seems unrealistic and im¬
Finally, in considering the gen¬
eral principle of the International
Neither will the Fund
concentrate
its re¬
Fund, the Report refutes the con¬
tention that it would remedy un¬
practical.
be
able
to
effectively in the places
sources
is greatest.
the need
where
believe that within
"We
years,
few
a
the continuation of unstable con¬
ditions that it is intended to
rem¬
edy, the Fund might become un¬
able to function effectively if the
trade
balance
to
were
run
the United
States and the supply of dollars
strongly in
in
the
of
favor
Fund
to
were
become
%
scarce.
"Another doubt
to the feasi¬
as
bility of the Fund arises from the
lack
of
agreement
on
the
pretation of its provisions.
ions
of
elasticity
ought to
of
be
parity
allowed.
tion
period,
Fund
the
this
at
our
adoption !of
time
would
"We
are
convinced
of
vergence
be
that the di¬
conditions
various countries is
treated
so
in
the
great that
of each currency
as
an
cases.
Too
the
cess
the
will
can
be
much
individual
the
and
applied to all
depends
efforts
upon
of
the
country for the over¬
approach to achieve the suc¬
anticipated by the authors of
Monetary Plan."
Regarding
the
views between
icans
"is
trade and
divergence
general prosperity. The
of
stimulation
trade
and
invest¬
ment, it is contended, will work
the balancing of interna¬
payments at a level of ac¬
tivity which increases employ¬
ment and living standards in all
countries.
In the early part of
toward
tional
report
the
quoted from
we
the six purposes
of
The second
of those purposes reads as follows:
the
Plan
Monetary Fund.
"To facilitate the
balanced
expansion and
growth of international
trade, and to contribute thereby
to the promotion and maintenance
of high levels of employment and
real income and to development
of the
.
the stabilization
must
be
monetary
country
of
Plan," the Committee states,
to
stimulate
international
this
reinforce
and
that
and
member
a
"One of the major purposes
the
official
rates that
The basic
in
tional trade.
inter¬
differences arise in part from the
great uncertainties of the transi¬
conclusion
domestic
permanently stimulate interna¬
or
Opin¬
far apart as to the degree
are
sound
conditions
result of financing
the
as
tions 2 to
lishment
entitled
pre¬
chairman
his
the
Sec.
Act
return
our
Bankers
problem.
We do not think it is
possible to develop a workable
Articles of Agreement
and
United
The
to
bank, president of Bank of James¬
the
2 to 9, both in¬
clusive, and the first sentence of
article VIII, section 2 (b), of the
eign Governments in Default
10.
to
town; George Whitney, president
of J. .P. Morgan & Co., Inc.; D!S,
Iglehart, director of Grace Na¬
tional Bank; William C. Potter,
the
For¬
Plan
requiring a
country
from which we import to take in
'our
State
unwise.
tories
Transactions with
Woods
Bretton
vent
apparent that there has been no-
all
Financial
the
Percy H. Johnston, Chairman of
Chemical Bank & Trust Co., and
includes among others the associ¬
ation's president, C. George Nie-
the
the Bank.
great. In a letter to "The Times"
(London) of Aug. 24, 1944, Lord
Keynes said there was nothing in
international
individual
or
specific.
The pos¬
disagreements are
very
drew' up the report, is headed by
shall have full force and effect in
United
make
can
Yok
Association
sparticipation in the Fund
it
the
for
States
that
stability is to maintain the
integrity of the American dollar."
of the Fund
provisions of article VI,
formula that
section 5 (i), and article VII, sec-"
as
contribution
world
States
of
in
to
the
single
9, both inclusive, of the
Articles of Agreement of the Bank
guidance
Act
causes
provided by law.
ticle IX, sections
(b)
which
removal
of
otherwise
5), the furnishing of—
(a) any data that may be re¬
quested by the Fund under Ar¬
sec.
not
sibilities of the
trary to the spirit of the Monetary
district courts of the United States
Furnishing
Information
of
a
shall be deemed to arise under the
ceipt.
con¬
and
Plan
or
United States by the Fund or the
as
*'a
to
transac¬
clusion of the Report is that "the
sound
standing at
Bank
lead
great exodus of dollars." The
"We
Jurisdiction and Venue of Actions
thd
the
would
service
tions, the powers of the Fund are
in the nature of the case limited
'
Territories
aggregate
Fund
and
trade
over
greatest
the
within
subscription of the
United States actually paid to the
the
mittee
any
notes issued to the Bank and out¬
in
of
jective of the Plan is the gradual
elimination of exchange controls
Guaranty Trust Co.; H. in British official circles it is con¬
foreign govern¬
Donald
Campbell, president of sidered the opposite of the gold
ment in default on its obligations
Chase
National
The British Chancellor
Bank, and Gordon standard.
to the United States", approved
S.
Rentschler, chairman of Na¬ of the Exchequer has emphasized
April 13, 1934 (U. S. C., title 31,
tional City Bank.
repeatedly that the Plan would
sec.
804a), is amended by adding
Commenting on the defects pf not mean the restoration of the
at the end thereof a new section
with
tions
which
amount of the
public on
Following much
similar committee of the American Bankers Asso¬
a
action
time shall not
Monetary
State Bankers Association made
subscription of the
actually paid to the
Fund, and the face amount of such
United States
Operation of the Fund.
International
on
the Bretton Woods Proposals.
on
as
Committee
time shall not
any one
sub¬
the Fund not provided for in sub¬
section
for which
authorized
are
be
to
extended
are
section, but such notes shall
000 of the fund established in this
•section
notes
as
Payment of Subscriptions
Set.
62-page report the
a
construction
the Bank shall act
its. depository
as
In
sued under that Act
to include the purposes
Regarding Purposes of Fund's Plan.
Sees Exodus of American Dollars in the Practical
ernment is a member
come
Depositories
Sec.
of British and American Delegates
Liberty Bond
Act, as amended, and the purposes
for which securities may be is¬
'.value shall not be communicated
as
Committee Maintains That Economic Stability
multilateral
-
Sec. 4.
Did ABA Group.
as
a
to
000 of the
shall, with the ap¬
proval of the President, appoint
an alternate.
Governors and their
rectors
public-debt trans¬
exceed $4,125,000,-
Up
Should Precede Currency Stabilization, and Points to Conflicting Views
imposed by the Fund, the report
general ob¬
states that "while the
productive resources of all
as
primarly objectives
of economic policy."
members
"Apparently
stabilization
Brjtish and Amer¬
regarding the restrictions
the experts
Committee,
feel,"
"that
be
accomplished
through impersonal credits which
would stimulate trade expansion
and
create
prosperity and full
employment in the.member coun¬
tries.
Instead of allowing trade
can
to determine the amount of credit
required
trade by
through
of
the
remarks
they would stimulate
credit policy. Stability
expansion is the term
a
sometimes
used
to
express
this
Instead of restricting
their purchases anji living within
viewpoint.
Volume 161
rHE COMMERCIAL
Number 4362
Purchasing Cooperatives Study Issued hy
flew Bedford Residents ffiiler Should Be Exiled and Germany
^»
tfational Tax Equality Association Oppose-Labor Draft
■'
\
search Department of the National Tax Equality Association, Chicago,
reveals that regional cooperative wholesales did an estimated busi¬
in 1943, and it is stated that legal tax avoidance on
this business cost the Federal Treasury approximately $14,300,000.
of $457,000,000
ness
The Association further
"Financing of these great super-i'
tions for 1942 arid 1941 indicate
that
they are doubling in size
every
three years by retaining
lax-free profits in their capital
structure.
Taxpaying
business,
turning the
cash
to members as
dividends.
Of
money
patronage
j "Biggest
the
among
gross
circumstances,
similar
under
$22,000,000 profits in 1943, $15,000,000 was used in this way.
these profits in Federal
would pay
income tax.
re¬
sales, over 6.000 local co-ops sold
to members and customers com¬
large
in
co-ops
all
business transacted
purchasing
Net
wholesales.
"At
for
that
,
_
mated
$1,023,000,000
volume
at
$1,480,000,000
was
year.
worth of the associations amounted
whole¬
super
Total purchasing
1943.
thus
by
to
valued
modities
corporations alone ac¬
count for about 80% of the total
co-op
volume of
addition
"In
was
of
end
the
Firestone
5n esti¬
1943,
2,700 co-op stores were in
$49,309,000 at the close of 1943, operation, selling groceries, meats,
$35,631,000 of which represented clothing, shoes, dry goods, furni¬
tax-:free accumulations retained ture, bakery goods, coal and wood,
out of prior earnings."
dairy products, hardware, electric
Incidentally the Association ob¬ appliances, books, drugs, cosmetics
serves that:
and household items.
Petroleum
"Cooperation, for the most part service stores numbered 1,475 and
a
farm-marketing movement in there were
1,283 farm supply pur¬
the United States, is now turning
chasing cooperatives.
Commodi¬
to the consumer philosophy, which
ties handled by the latter included
Has been its stronghold in Euro¬
most items sold by co-op stores
pean countries.
Recently, many plus paint, lumber, building ma¬
labor unions have organized con¬
terials, feed, seeds, fertilizer and
sumer
cooperatives, primarily in other farm supplies.
Similar ac¬
the fields of retail groceries, serv¬
tivities were carried on by about
ice stations and credit unions,
600
purchasing departments of
t
"BOTH CIO and AFL have es¬
farmers' marketing cooperatives.
tablished departments to study co¬
"The development of large co¬
operation with the possibility of
operative-wholesaling
corpora¬
setting up chains of city stores to
tions completed the cooperative
furnish food and other supplies to
invasion of Commodity distribu¬
members at low costs that are
tion channels and
prepared the
made possible by avoidance of the
Federal income taxes that inde¬ way for the cooperatives' entry
into manufacturing.
to
in
work
the
""contrary
contrary
to
was
that "city on Feb.
on to
say: 1
At
a
ford
dispatch from
Harriman
"forced
branded
will
unnecessary
and un-American.";
Citizen's
The
ment,
"a
com¬
not be perfect,
but it
little staggered,
better
for
times
prospects of a better
shortage in
manpower
the
plants.
war
New Bedford, a city with a pop¬
ulation of 110,341, is principally a
textile mill center.
discussed
Gildersleeve
the
member
a
•
the
of
Study the Organi¬
lot about the constitutional and "
a
legal side of international affairs.""
world after
with Germany somehow
war,
been
po¬
and
1939
zation of Peace, and have learned
office, Broadway and 119th Street,
Miss
have
cultural
in
as
fields, but since
Commission to
interview at her Barnard
an
some¬
am
much from the
so
angle
educational
I
New Bedford's critical
In
litical
organization.
posed of businessmen, industrial¬
ists and labor officials, was organ¬
ized when a previous attempt was
instituted by the WMC to handle
pleased,
know
I hope 1
about.
affairs, not
international
peace
very
I
tremely interested in international
when she first began to
in
but
field
a
.
better basis for permanent peace
interested
is
being
appointed not as a woman but as
an expert in international affairs.*
"For 25 years I have been ex¬
than anything the world knew 25
be
this
thing
nothing," and so must com¬
mand the support of the American
people.
The
Dumbarton
Oaks
plan, she believes, will provide
years ago,
Committee,
shall accept," she smiled. "I am a
than
a
appointed, and if invited I
be
to
Fran¬
thousand
may
be
of Dean Gildersleeve:
structured-
be built at San
will
which
follows other remarks
as
peace
cisco, in Miss Gildersleeve's judg¬
18, 'which went
"unfair,
as
world
The
by Mayor Arthur
as
New
England's
labor
draft," was
termed
peace,'^according to the New York "Herald Tribune" of Feb. 16,:
which indicated
meeting of the New Bed¬
Citizen's
Committee,
the
action,
first
hard
the
Associated Press
an
Virginia C. .Ghdersleeve of Barnard College, only woman
delegate to the United Nations conference to be held at San Fran¬
on April 25, said on Feb. 15 that Adolf Hitler should spend the
rest of his days on a "remote island and all Germany should suffer a
to i law
and
Constitution" by
labor, management and civic lead¬
ers
of New Bedford, Mass., said
Dean
.
cisco
Fisk
factories
tire
declared
M.
done by Co¬
operative Grange League Federa¬
tion, Ithaca, New York, totaling
$438,472,000.
Seventeen of the
gional
and
:
transferring 500 tex¬
tile workers to
j
Given Hard Peace, Says Dean Gildersleeve
I
Commis¬
Manpower
sion's order
savs:
cooperative corporations is accomplished largely by adding untaxed
profits to capital, instead of re¬
War
The
published by -the Re¬
A study of purchasing cooperatives just
862
FINANCIAL CHRONICLE
&
As
shorn of its militaristic tendencies
President
former
a
International
Association
and the solid new "G. I. O,"—Gen¬
versity .Women,
eral International
she had
Organization-—
she
"how
learned
the
of
Uni¬
of
added that,
things are,
•
.
pendent stores must pay."
"The
As to its
study of the 17 co-op¬
eratives referred to above, the As¬
sociation has the following to say:
"Data for the
:
.:
17
same
ment
and
power,
the
Beginning in that year,
major trends have charac¬
terized the American cooperative
movement.
Some observers be¬
lieve that these trends are leading
associa-
balance
"Many farmers' cooperative as¬
sociations have returned to the
in
philosophy.
Successful
in marketing agricultural produce,
the
farmer
co-ops
have made
enormous
strides
in
purchasing
farm supplies and other consumer
goods.
Increasing purchasing ac¬
tivities of marketing associations
indicates, however, that develop¬
consumer
.
This
the fact
only in goods and services.
recognize
it must buy
that in the long run
as
foreign
it
countries
sells to them
on
as;
much
The more it
^ells to them.
ment of
credit today, the
The United
goods and
services.
States
accept gold
can
of its exports,
for
growth
and
functions
of
sent
President
to
and
Saltonstall
and
Congressman
Antonia
of
the
England, local director
of
Union
Workers
Textile
America, CIO, said he would seek
an
injunction in Federal Court
the textile
19 to restrain
Feb.
on
in
mills from discharging workers
compliance with WMC order.
.
.
said.
statement at the
meeting that they
"regard the action as an attempt
to use New Bedford as a guinea
pig to work out a system of labor
draft without any further authori¬
zation by Congress."
A manpower survey
mills
weeks
cruit
made
was
and
ago
workers
in the New
several
attempt to re¬
voluntarily failed
an
two weeks ago.
House
em¬
President,
"Another major trend
is.
fun¬
a
damental
James
American Trust Com¬
Vice-President, George J.
President,
pany;
change in the coopera¬
tive field.
It is a trend toward
vertical
First National Bank of San Fran¬
tageously receive, is limted. Loans
ing
and credits are essential at times,
formed
cisco; Secretary, Earle H. LeMasters, Vice-President, Pacific Na¬
but this country cannot
finance
a
And it adds:
of
dollars
through
oil
proposed
mills
States
for
a
that
plants,
field
feed
kinds
of
They have
of
banking
nancial credit association.'
There is
the United
may overstimulate
few years, as it did
refineries,
through the establishment- of a fi¬
inflationary influences.
danger
they
rate,
other
many
the
At
mills, timber tracts,
fertilizer
and
entered,
country and add substantially to
the
saw
productive facilities.
gold and dollar balances held
abroad,, might impose a severe
strain on the
economy
of this
of
also
wells,
canneries,
agencies, when considered in con¬
nection-with the $20,000 million
rapid
petroleum
buying
are
contemplated
and
existing
increasingly
an
"The great exodus
now
and
manufacturing organizations.
large export balance indefinitely
and expect to be repaid."
[
distributing:
super
"The
trade
last-named
characterized
in the
tions in
1920's, and then experience a col¬
has
A great ex¬
pansion would doubtless be'fol¬
lowed by a severe decline, regard¬
less of any plans or intentions to
the contrary.
There is little in
past
experience with artificial
lapse of .the boom.
the
Cooperative
has
opera¬
past five years and
gained significance during the
war.
V
the
major
development
trends,
of
cooperatives
have entered successfully three of
stimulation through credit expan¬
the four fields which, doctrinally,
high hopes for
permanent benefits from such a
policy.
A sound and
orderly
growth of trade, without exces¬
sive stimulation, would be more
they deem
lasting."
agriculture itself."
sion
that justifies
,
.
v
■
'•
Bank
of
San
Crocker
Francisco.
The
following were elected as
members of the Clearing House
Committee:
James
K.
Lochead
(Ex-officio); George J. Kern (Exofficio); L. M. Giannini, President,
Bank of America N. T. & S. A.; I.
W.
Hellman; - President,
Wells
Fargo Bank & Union Trust Co.;
J. J. Hunter, President, The Bank
of California, N. A.; W. H. Thom¬
son, President, The Anglo Cali¬
National
Bank
of
tablishment
necessary
of
a
Commonwealth
tion, manufacturing,
for the
es¬
Cooperative
—
distribu¬
barffdng
and
San
J- C. K. Mcintosh, who has
com¬
pleted 38 years of service with the
Association, the past sixteen of
which were as President, asked to
Mr.
Lochead, the newly elected Presi¬
dent, moves up from the VicePresidency of the Association. Mr.
Kern is the newly elected VicePresident
of
the
Association
has been serving as a
and
member of
man.,
dreadfully if
too
other
some
the third
this particular
living
tions, and .served as a member of
the
American
the civilized world, and now I am
tee
on
all for
demilitarizing Germany. If
that is
a
German
they
wish to destroy the
have
should
a
I
I
chance to eat' and to work.
sume
that
the armias
tion
will
" eliminate
of
ideas
as¬
first
the'"' most
"If
teachers
be
Nazi
lege,
the
in
but the
control what is taught.
can
Germans
League of Nations.",
of virtue
They
before the war.'
be dead now."
further
said
thankful
been
what .she called the
j
that
"Anglo-Saxon
Yalta, when President Roosevelt,
Prime Minister Churchill and 'Pre¬
decisions."
"We
'
"great
>
Anglo-Saxons,"
said,
"are used to that kind of give and
take.
I
mises
arrived
was
glad to
see
We
at.
compro¬
got
some¬
thing out of that conference.
wonderful
was
running
see
about
the
felt
it
ment
not
details
on
the
had
been
to com¬
the agenda
proper
of
which might come before the
Francisco
She
with
San
conference.
had
the
prefaced her remarks
admission
that
she had
not yet received any formal
invitation
noti¬
what she read in the papers.
or
from
State Department and that all
knew about her
appointment
"However, I gather I
owned
heavy
during
the
am
"V
1944.
-
•
the
in
construction
Nonresidential
eastern states,,
contracts awarded
thirty-seven
measured
by
during January, amounted to $81,-*
614,000 as compared with a total
997,000 in January, 1944, to $19,-
She added that she
quite
nonresidential and
engineering
construction
month exceeded that;
reported in the first month, of
vately
pro¬
among
"formula
a
worked out."
during January, F. W. Dodge Cor-v
poration reports.
At the same
time it is made known that pri-.
$67,908,000 during January of
year.
Residential construc¬
tion declined from a total of $40,-
clined to comment, saying she un¬
derstood
the
in
many
Russian
unanimity
posal, for
so
healed."
sores
Asked
to
It
construction
owned
states east of theRocky Mountains is revealed in
the record of contracts awarded
v
she
January
licly
type agreement" had prevailed at
the recent Crimea conference at
mier Stalin arrived at many
>
Continuation of declines in pub¬
may
\
Gildersleeve
had
r;
Contracts Awarded
Germans
good
thirty-seven
she
;
Dcdge Gossfrucfion
merit.
and
^uch people. I had friends in Ger¬
that
Col¬
America would h'ave joined
En
Miss
advice
Barnard
of
students
learn to take respon¬
sibility for their government and
to choose the right, kind of people
to rule over them.
Yes, I knew
many
Senate,'*
States
United
ideas,
these
even
the
the
of
im¬
successful
•,
she smiled, "had taken, the
posed by force, of course, nor will
alien
Fourteen
his
enunciated,
.
Points.
Then,
be
cannot
Na-j,
Long before that, however,,
she said,
she had attended the
dinner at which Woodrow Wilson
I suppose, the armies will control
the schools, for a while at least.
Democratic
committee
tions.
occupa¬
poisonous Nazi—somehow.
participating body
a
established by the League of
think
reasonable
is,
Intellectual;
international
the
in
,
Commit¬
National
International
Cooperation,
I'm for it.
people—that
position.
Since the last war, she said, she|
had studied world peace organiza¬
that Germany has brought war to
no
the.
Association of Univer-
sitv Women had suggested her for.
within
time
Schumacher; Assistant Manager is
Huxtable.
anticipation of frequent inter¬
American
pro¬
fication
H.
selected by leaders of
*;
the memory of persons now
hard peace,
the roster of quali¬
on
women
that the Washington office of
cedure should be adopted.
is
be
national conferences. She assumed
executing a mad¬
However, I should not feel
Clearing House
Committee.
The Manager of the San Francisco
Clearing
House
is
Russell-' W.
the
Howard
in
great powers on world peace en¬
forcement, Miss Gildersleeve de¬
Francisco.
be relieved of further duties.
"Through
these
tional
Vice-President,1
fornia
,
trend
Kern,
a
knowledge of how;
appointed to the'
she said, except that
no
to
women's organizations last spring
quite
—
have got to
Lochead,
K.
fied
like the idea of
But
gold either nations are willing to
part with, as well as the amount
that the United States can advan¬
integration. By pyramid¬
profits,
cooperatives have
sider him
be
Clearing
Francisco
lives
he
had
came
conference,
Hitler- her name is
see
|:. "You arid I krioW; there used to
Elects New Officers
San
to
executed, for I con¬
madman, and I do not
him
having
armies
The
She
she
I should prefer that to
destroying
S.F. Blearing
from many nations.
what
fate
she
leader should
while
quietly.
"I have
The CIO and AFL said in joint
done" in gatherings of. individuals
no
remote island and kept
a
"This
The
WMC
order,
effective
Wednesday, Feb. 21, would cause
a
loss of pay for many workers,
force night work upon them and
destroy seniority rights, Mr. Eng¬
land
taken to
there
Gifford, of New England.;
lowing officers at it annual meet¬
ing on Feb. 13:
of
doublycertain that
Asked
peace.
consumer
lessening
make
to
future Hitler shall threaten world
Roosevelt, Undersecretary of War
thought the Nazi
Patterson, War Manpower Com¬
suffer, she said:
mission Chairman Paul V. McNutt,
"I should
like
and Massachusetts Senators Walsh'
House Association elected the fol¬
phasis on marketing.
some
but the amount of
transfer1
the.
against
been
Will find
the movement
continued
they must repay it later in
more
" Protests
have
Bedford
future.
position of the United
using the Fund as a
means
for
expanding
foreign
trade, the Committee points out
that
"ultimately
United
States
loans abroad can be paid
back
from
the comparatively near
States in
As to the
must
United
the
in
commonwealth
the creditor countries."
country
cooperative
to the formation of a
would be created by expansion in
States
developed chiefly since
has
1930.
their means, the debtor countries
would
be
provided
with
more
buying
move¬
three
.^:*vvr.v•-V.;v ;:r.•r'-V;
>A&v"ifr'C
wholesale
co-op
;
of
last
.
Total
the
aggregated $159,238,000
as
compared
with
$140,949,000 last month.
r
536,000
in
In
1945.
January,
construction
first
month
volume
January
nonresidential
during
1944
of
privately
owned
construction
resented 55% of the
total,
rep¬
as com¬
pared with 14% of the total ;dur-'
ing the corresponding month of
1944; privately owned residential
last
construction
sented
79%
month
of. the total
repre-:
as
com¬
the
pared with 61% in January, 1944.
she
In
was
going
January, 1944, heavy engineer¬
ing construction privately owned
amounted to'5%
last month it
of the total, but
represented 15f<?.
hV. * ttom
,
m
THE COMMERCIAL
864
The Bureau of the
(Continued from page 859).
Jan.
on
crease
above
This
represented an in¬
of 5,400 barrels per day
the preceding week,
but
28,000 barrels below the daily
average figure recommended by
was
the Petroleum Administration for
War
the
for
When
1945.
of
month
February,
compared
the
with
corresponding
week
last
year,
crude oil production was 329,650
barrels per day higher.
For the
.
weeks
four
ended
Feb.
10,
averaged
output
daily
1945,
4,728,250
barrels.
from
refining
com¬
panies indicate that the industry
Reports
as
whole
a
stills
to
ran
(on
a
Bureau of Mines basis) approxi¬
mately 4,770,000 barrels of crude
oil daily and produced 14,996,000
barrels of gasoline. Kerosene out¬
1,563,000 barrels with
put totaled
distillate fuel oil placed at 4,565,000 barrels and residual fuel oil
at
during the
Storage
supplies at the week-end totaled
47,882,000 barrels of civilian grade
gasoline,
44,573,000
barrels
of
military and other gasoline; 7,896,000 barrels of kerosene; 30,544,000 barrels of distillate fuel
oil
and
48,845,000
barrels
of
barrels
9,237,000
week ended Feb. 10, 1945.
bered
Shipments
—
The
Na¬
sociation
reports
that
lumber
shipments of 472 reporting mills
were
5.8% above production for
week
while
10,
1945,
records for these mills
5.9%
were
Feb.
ended
new
than production.
order files amounted to
Unfilled
more
97% of stocks.
For the year-to-date
sponding
further to
$4.11, the highest since
the war-time peak of $4.12 was
reached on May 18, 1943. The cur¬
rent
level represents
a
rise of
2.0% above the $4.03 recorded on
'
—
-
Paper
week
pro¬
ended
Feb. 10 was 90.2% of capacity, as
against 88.8% of capacity for the
preceding week,
the American
Paper and Pulp Association's in¬
dex of mill
activity disclosed. The
rate
during
the
week
ended
Feb. 12, last year, was also 88.8%
of capacity.
As for paperpoard,
production for the same period
was
or
reported at 93%
of capacity,
increase of 1 point over the
an
previous week.
Silver—The London market
was
unchanged at 95Vzd. for basis .999
silver.
The New York Official for
foreign silver continued at 443Ac.
and
70%c. for domestic silver.
January
Total
Building
value
Permits
—
of
building permits
issued during January
moderately
exceeded
that for
December, and
commodity markets showed
change during the week in
the general level of prices as in¬
ing
within
&
Dun
to
According
Bradstreet, Inc., its
a narrow
172.12
a
the
on
markets exhibited an
irregular trend with futures lower
after a show of early
strength.
all
Virtually
firm.
ing
cash
Dun & Bradstreet reported.
mated
cost
of .permits
for
215
cities of the United States totaled
$44,767,043 in January, represent¬
ing a rise of 13.5% above Decem¬
ber, 1944, with $39,433,287, and
31.9%
greater than the $33,recorded in January of
942,794
last year.
Failures—Commercial
and industrial failures in the week
ended
Feb.
15
turned
upward,
bringing them close to their
ber
in
the
trad¬
num¬
comparable week of
Concerns failing, Dun
Lend-Lease
Basil
noted in leading domestic
was
and ir¬
regular. Spot sales reflected a de¬
cided slump, with mills cautious
and buyers generally adopting a
the
In
narrow
w?ool
Boston
ket
trading
showed
quieting last week.
mar¬
a
New
were
Conditions of retail trade
varied
in
the
is
of
that
above
rose
the
weather in
Bad
Company,
favorable
chasing of seasonal lines.
cially was this true in the
advanced
parel
pur¬
Espe¬
case
buying of women's
continued
at
lines,
delayed
shipments have been a handrance
and deliveries have fallen consid¬
behind and reorders in
many
lines are difficult to fill.
However, there was a slight in¬
erably
in volume in spite of short¬
in many staple items.
As
for inventories, reports coming to
hand place both wholesale and re¬
climes
has
heavy
sales
beachwear
more
departments.
Federal
that
of
a
store
sales
a
taken from
as
Reserve
on
Board's
in¬
date
15%
and
for
the
notably
active
New
last
York
week
of
providing
civilians
have
of
been
met
for
—
list of essential
a
gar¬
selling in the low and
brackets.
field
me¬
In
the
during the week
lines
of
dresses
and
manufacturers
withdrawn with
requesting
long
deliveries.
in
were
As
the
case
of
bered 23, as compared to 14 in the
excellent demand and the volume
tion continued
previous week and 25
in
year.
Bradstreet, Inc., reported,
Failures
in
jumped to
year ago.
in
there
better than in previous weeks
over
all
other
industry
bilities
bered
ago
moderate
were
in¬
of
13,
and
year ago.
$5,000
as
19
or
more
against nine
in the
like
a
week
week
Canadian failures
num¬
a
num¬
a
year
a
shortages
in
lower-priced lines
medium
the weekly
and
increased
saw sales drop
behind that of the week preced¬
ing.
Drapery
sale's,
however,
forged ahead and the volume of
floor
Bfetter
wide
towels
covering
was
on
quality linens
inquiry as well
and
other
the
rise.
period
t
j
staple
sheets,!
New York
City for
period to Feb. 10, 1945,
by
19%
last
with
pared
an
over
year.
the
same
This
increase
com¬
of
13%
1941
Total
1942___:
week.
Feb.
For the four weeks
10, 1945, sales
1943
ended
by
13%
cotton • and for the year to date by 10 %.
bulky commodities
value.
tTot.nl
1944
at 80%
Lend-Lease
ex¬
program
in
value of all
of the
first
was
1942, and 80%
started,
in
The
figures quoted on United
exports
do
not
include
shipments to United States armed
forces
and
abroad
The Bureau also announced that
imports of newsprint in 1944 to¬
taled
2,491,000 short tons, com¬
pared with 2,637,000 in 1943, 2,-
1199327584620.—i
1942, and
921,000 in
Certain delayed figures on trade
Latin America and Canada
trade
on
also
in
gold and silver
available to the
made
under
These are
time
STATES
1941-1944
EXPORTS,
thousands of dollars)
Lend-Lease
Percent of
Domestic
♦Domestic
Merchandise
and Foreign
Lend-Lease to
Merchandise
Total Exports
741,000
5,019,877
14
.
7,959,539
4.894,000
61
12,590,538
10,106,637
80
80
13,968,149
11,287,139
730,498
722,315
535,057
719,176
•
1943—
74
710,691
528,535
March
938,512
973,805
777,060
April
979,166
969,583
774,685
79
1,084,790
1,001,739
1,261,299
1,076,047
847,956
78
995,427
790,198
79
1,253,499
July
__.
October
79
1,032,173
81
1,202,392
1,191,354
985,878
62
1,235,230
1,218,517
1,004,249
81
•
1,194,972
1,187,250
951,715
79
November
1,072,0S4
1,060,330
856,819
80-
1,244,047
1,231,722
1,022,312
1944—
March
________
1,090,235
1,083,719
1,156,166
1>189,629
1,422,664
1,277,336
1,197,185
1,187,934
1,189,677
-
April
May
June
—
July—
August
'
October
November
—
1,137,767
1,132,481
•892,766
1,184.845
1,176,434
900,746
948,079
939,966
683,806
represent
'
merchandise.
Lend-Lease
♦Including
,,
unrounded
of
sum
rounded amounts.
of
2.—VALUE
TABLE
OF MERCHANDISE.
PORTS
(Values
STATES
UNITED
OF
WEIGHT
SHIPPING
AND
in
thousands
weight
in
of
millions
IM¬
1943-1944
dollars:
of
shipping
pounds)
♦General Imports
ShipYear and
v:
ping
ttlmportsfor
Consumption
Value
Weight
Value
1941
3,345,084
t
3,221,954
Total
1942
2,742,014
t
2,766,425
STotal 1943
3,372,087
100,444
3,380,879
gTotal 1944
3,911,234
118,844
3,869,968
1943—
January
February
March
228,878
_
____
April
5.438
246,240
233,866
6,343
244,899
249,342
6,515
264,058
257,712
6,953
267,588
May
281,345
8,093
285,449
June
295,304
10,005
287,654
301,698
9,151
295,980
July
—___
August
315,859
10,850
306,796
September.
286,352
8,623
285,259
October
329,168
10,181
317,293
311,084
9,414
302,022
281,480
8,877
277,640
__
November
_
_
f'
1944—
January
—
February
_
300,122
8,959
304.569
313,178
9,373
304,567
March
358,498
April
360,146
10,947
356,273
May
386,386
11,660
372,697
9,753
357,252
10.388
323,188
294,467
9.284
290,002
10,163
296,369
September.
301,591
280,426
9,841
278,273
October
327,178
10,155
330,278
321,922
9,404
323,779
335,943
8,917
332,721
June
July
___
_____
August
—.
November
_
_
331,377
include entries for im¬
consumption
and
entries
into
♦General imports
mediate
customs
+Imnorts for
for
immediate
warehouses.
entries
and
with-
consumption
83
82.
986,717
83
1,193,139
84
1,035,383
78
78
953,632
figures,
TABLE
hence
IMPORT
AND
80
is
78
76
•
72
differ
may
3.—VALUE
,
81
'
936,479
928,105
OF
slightly from
UNITED
EXPORT
STATES
TRADE,
1915-44
(In thousands of dollars)
Exports of Domestic
and
:
•
♦General
Foreign
Merchandise
Imports
1915
$3,554,671
$1,778,597
1916___.__.___
5,482,641
2,391,635
1917
6,233,513
1918.__________
3,031,213
3.904,365
5,278,481
4,485,031
2.509,148
■
3,831,777
3,112.747
1923_______—
4,167,493
3,792,066
1924
4,590,984
3,609,963
1925—
4,909,848
4,226,589
1926_„
4,808,660
1927.
4,865,375
_________
1928
5,128,356
1929-__-_juj.L_
5,240,995
,
2,952.468
6,149,088
7,920,426
8,228,016
4,430,888
4,184.742
/
4,091.444
u
'4,399,361'
3,843,181
3,060,908"
1931__—______
2,424,289 J'-i
2.090,635
1932
1,611,016
1,322,774
L_
1933__„_
1,674.994
_
1,655,055
2,282,874
1939____
1940—
•
2.422,592
3,349,167
3,083,668
3,090,440
1,960,428
3.177,176
2,318,081
2.625,379
5,147,151
3,345,084
8,035,416
; 2,742,014
12.713,885
1944__________
♦General
immediate
3.372,087
14,065,237
imports
3,909,504
include
consumption and
warehouses.
bonded customs
for
from
bonded
entries
entries
for
into
•
customs
warehouses
consumption.
{Shipping- weight data
figures,
sum
2,047,485
2,455,978
4,021,146
—
1943...
drawals
1,449.559
,
2,132,800
STotals
consumption include
85
900,977
951,445
Year—
Total
Month—
"
82
923,943
1,081,542
1,074,874
1,146,493
1,179,809
1.413,351
1,268,840
1,190,134
1,180,724
1,183,499
:
;
,
December
—
in
2,982,000
1941.
8,035,416
June
ad¬
not
are
justed for changes in price level.
12,713,885
14,065,237
May
61%
1943.
shown in the tables which follow:
UNITED
Merchandise
January
February
bonded
rose
OF
5,147,151
tTotal
December
(revised figure) in the preceding
attracted I
as
of
•
the Federal Re¬
index, department
store sales in
Furniture departments affected
extremely tight.
to
Bank's
serve
ago.
by
Total
whole, the general supply situa¬
According
furnishings
was
^nd
Large failures with lia¬
creases.
and
wear
service
and trade groups except wholesal¬
ing
men's
from last week's
commercial
seven
while
one,
a
num¬
low
public for the first
security regulations.
$11,287,-
was
and Foreign
December
stocks of goods for the country as
&
run
than
clude shipments by vessel, rail,
truck, air, etc., and the non-LendLease part of the total exports
include
a
higher proportion of
were
ex¬
♦Total Domestic
with
needs in essential
pound
per
non-Lend-Lease
exports.
Both
Lend-Lease and total exports in¬
and
1.—VALUE
Year and Month—
tile control program for the pur¬
pose
value
with
>
with
week the WPB set up a new tex¬
higher
a
States
and
was
specialty shops especially
On Monday of the current
their minimum
1943
(In
sales of
large.
of
1944
year
80% of total exports.
or
tTotals
in
exports
Lend-Lease
1944
TABLE
year
bags sales also moved upward.
Frilly white blouses continued in
last
000,000,
by 13%.
Retail trade
sportswear
Hand¬
total
of
during
ports
December
summer
in
in
The
value
The
weeks
10, 1945, sales
$948,000,-
$3,372,000,000 in
$4,399,000,000 in 1929.
September
Feb.
billion
one
with
22% ahead of a year
ago for the week ended Feb. 10,
1945. This compared with 11% in
the preceding week. For the four
ended
1944,
Lend-Lease materials tend to
of
were considerably higher than the
$6,234,000,000 in 1917, the largest
export year during World War I.,
and
$8,228,000,000 in
1920,
the
year of highest exports prior to
1943, when the total reached $12,714,000,000. The value of general
imports in December was $336,000,000, bringing the total during
1944 to $3,911,000,000, compared
year
were
wholesale
sunny
the
total of
a
January
February
dium-priced
The
begun, resulting
of bathing suits
1944.
August
ments
the difficulty encountered in
to
for
September
below
below
$14,065,0*00,000 for the
ages
stocks
totaling 78 billion
or only 42%- of
the
total
export
weight.
The
percentage of Lend-Lease in the
physical volume of export trade
at 42% was higher than in 1943,
when the percentage was 34%.
pounds'in
coal and other
000, as compared with an average
monthly level
of $1,172,000,000
crease
tail
States exports,
exports
in 1944 compares with
14% in 1941 when the Lend-Lease
wholesale
In
makers
goods continued in good
demand
despite low inventories
trek
was
physical
dropped
dollar mark to
continued
especially true
of meats and dairy products. Sales
are holding
about even with the
levels prevailing one year ago.
mands
its way,
winter
seasonal
distribution
This
$3,911,000,000
118,844,000,000
represent a
percentage
of the
volume of the United
ports
Re¬
ago.
designated as Order M-388
and provides that mills must set
aside specified percentages of all
their apparel fabrics the cloth left
after military and industrial de¬
accessories, cosmetics
jewelry enjoyed a
good demand as interest in spring
dresses, suits and coats increased.
making stock replacements.
year
der is
costume
on
a
clothing around the prices they
paid in 1943. The new textile or¬
a
Women's
With the winter well
display¬
42
$3,372,000,000
100,444,000,000
exports
smaller
Total exports in December, 1944,
for the first time in nine months,
sum
quickly absorbed by the public.
and
over
Food
to
ap¬
shipments
new
12%
increased
of
millinery.
Shortages
continue to be an important fac¬
tor
of
trade
with
departments'
handling white goods and other
staples being crowded.
A good
volume was enjoyed in the week
by main floor departments with
activity fairly well distributed,
with
lines
gain
gional percentage increases were:
England, 4 to 6%; East, 7
to 10%; Middle West, 11 to 17%;
Northwest, 7 to 10%; South, 10 to
14%; Southwest, 12 to 16%; Pa¬
cific Coast, 9 to 15%.
and
level
to
dex,
sec¬
to the
most retail
moderate
country-wide basis,
adversely, but
in the main, moderated tempera¬
were
Trustee.
compared
with the relatively heavy buying
of a year ago, retail volume for
the country was estimated from
the
tions affected sales
tures
as
Rayon and cotton yardage
sales for home sewing held at a
high level.
Department
previous
some
34
items.
a
80
185,391,000,000
1
Smith, President of the Home In¬
With
$14,065,000,000
80
173,135,000,000
;
ago.
were
country at large but sales volume
week.
(pounds)
President, announced re¬
the election of Harold V.
cently
week for the
past
weight
value
O'Connor,
spotty.
further
wool
reluctantly
made by buyers and the general
disposition was to avoid accumu¬
lating* heavy stocks of domestic
wool at this time. Activity marked
foreign wool .trading induced by
the-scarcity of spot offerings and
shortly to arrive lots. In the pri¬
mary wool markets new purchas¬
ing also registered declines.
commitments
$12,714,000,000
(pounds)________
Chairman of
Executive Committee. of the
Georgia Warm Springs Founda¬
tion, of which Franklin D. Roose¬
velt
1944
j
________
weight
New
cotton markets last week with the
price movement
and
Business
of
smaller volume
A
export trade broke all
1943
the
8
held
markets
States
___
Trustee of Foundation
ing
low
1944,
Esti¬
Percent
corresponding date
year ago
United
•
value—
Total
range.
daily wholesale commodity price
index closed at 175.50 on Feb. 13,
from 175.33 a week earlier and
of
;•
export
surance
Retail inventories
was
continued
movements
for
of
'
1
Total
import shipping
little
Census, Department of Commerce, announced
value
during the calendar year 1944 and that the value of the
import trade reached a 15-year high.
The Bureau
also released for the first time information on the
physical volume
of -these record-breaking import and
export totals showing that the
shipping weight of exports in United States imports in 1944 had
1944 reached a total of 185 billion
a
total
shipping weight of 119
pounds, an increase of 12 billion billion pounds, a substantial in¬
pounds over the already very high crease from the 100 billion pounds
year of 1943.
At the same time ih:il943
import
Commodity Price Index—Lead¬
far
States
Total
dividual
Lend-Lease
records
United
Total
corresponding 1944 date. Ad¬
during the week occurred
steers, sheep,
declines were
registered in flour, rye, and eggs.
The index represents the sum
total of the price per pound of
31 foods in general use.
oats, potatoes,
and
lambs, while
substantially above the vol¬
month
the
vances
in
rose
first
that
export shipping
Percent Lend-Lease
ume
the
31
the
and
of 1935-39, pro¬
reporting mills was
42.8% greater, shipments 32.2%
greater, and orders 25.2% greater.
the
price
,
6.8%
week
for:-
food
index for Feb. 13 advanced 1 cent
ments.
average corre¬
Paper Production
Index—The Dun &
wholesale
ex¬
of
duction
Price
Food
Bradstreet
mills
17.3% above output.
Compared to the
duction
the
of 1944.
shipments
reporting identical
ceeded production
by
ran
in
none
compared with
previous week and
corresponding week
as
waiting position, due to the un¬
certainty over future
develop¬
of
orders
the
The grain
tional Lumber Manufacturers As¬
the
in
two
residual fuel oil.
Lumber
three,
Thursday, February 22, 1945
Record-Breaking United States Foreign Trade
The State of Trade
barrels.
& FINANCIAL CHRONICLE
of
represent
hence
rounded
may
not
sum
differ
amounts..
available.
of
unrounded
slightly
from
Volume 161
THE COMMERCIAL &
Number 4362
The Price and
Quantityof Money
'
(Continued from first page)
governed by the same factors, but
it
liquid banks can easily mean
frozen inventories. The process by
no
meaning except that which the
monetary authorities choose
to
give. The importance of what has
which
banks
render
themselves
be
may
to
practically,
us
has
liquid,
i.e., calling or failing to
loans, can render business
illiquid
by
failing
to • provide
here
renew
demonstrated by anyone who will
funds to
index
goods. The second
theory of innovations,
now
commonly accepted as im¬
portant in the theory of interest,
gains in concreteness when con¬
trasted
move
with
works
tal
the
inevitably
obvious
effects
con¬
capi¬
upon
values.
The
paramount value of Mr.
Potter's discussion, however, cen¬
ters
in
his
interest
definition
tirely
by
ciated capital values
maintain
is the level at which "all invest¬
would
ments
efficiency"
and produce a meaningful rate of
equate
interest.
The
quest for this
terest is
difficult
a
values bear
no
"pure"
in¬
"Capital
one.
relation
necessary
to antecedent costs" for two
First,
rea¬
true innovation can
only after its capac¬
ity to produce income is known
by experience and capitalized at
a prevailing rate of interest.
Sec¬
ond, and much more important,
capital values bear no necessary
sons.
a
be evaluated
relation
antecedent
to
be¬
cost
they are frequently financed
funds which have never been
cause
by
income
have
therefore
and
been
could
If
saved.
not
venture
a
launched under the second condi¬
tions is successful, the capital as¬
set
will be
owned by someone
who
did
and
antecedent
no
the value
of
the
savings,
will
assets
be extracted from the community
by
of shifts in income dis¬
means
tribution
cause
shifts in prices which
changes in the value of in¬
or
received.
come
Inevitably, the interest
sions
of
fruitless
and
practical
long
as
habits
as
mind
of
will be
ideas
men
they
discus¬
use
that
were
and valid in the remote
common
day when hard money had a cost
of production, and the volume of
loanable funds, though capable of
some
expansion, had perceptible
limits.
To
these
use
concepts
in
Keynesian world where, "under
ideal conditions, with risk elim¬
a
abundance of savings,
inated and
interest
should
be
zero,"
evi¬
is
dently to talk at cross purposes.
.The sterility pf the discussion is
due
"the
to
discussion
under
and
fact
be if loans
entirely
all
at
not
rates
bank
are
what
were
upon
the
that
rates
rates
would
in fact dependent
by
a
price-times-auantity (p-q)
In general, the relation
process.
between
the
inverse:
is
these
auantity, the lower
the
price.
For any particular
commodity, the business man's ex¬
perience enables him to judge
with great accuracy the probable
effect of change* of one factor
greater'
the
upon the other. This accuracv is
possible because q is governed by
objective
considerations
of
time,
and available materials. But
when we speak of interest as at
space,
present
without
the
administered,
these
guides,
are
we
because
q,
auantity of money, is gov¬
no objeetive factor*. The
erned bv
productive capacity of the United
States has definite dimensions—so
tons, bales, carloads, in Feb¬
ruary or March,
at Honolulu or
Hehoken. The number of dollars
many
and
bonds
and,
representing
deferred,
on
therefore,
claims,
this
c^ofeit.v. hao
ohi^otive limits: and the
relationship,
debts
current, or
however
yr,
•.
j
:
p-q
r»r>
value
important
de¬
any
effect
Marx
as
Fiscal
This
unneces¬
because it enables those who
the controls' to determine
and
and
the
of the
value
value
the
of
income
savings
of
the marionettes for whom the de¬
cisions
The
provement
,
one
the commodities and services pur¬
chasable.
Within the price struc¬
ture is the rate of
interest, a price
of peculiar importance in mani¬
festing the state of the economy.
Pump-priming,
deficit financing,
compensatory spending and cy¬
clically balanced budgeting are
all
attempts to
establish some
price level other than that estab¬
lished
in
vious
reaction
period
to
some
in which
pre¬
loans had
been
funds
those
could
qualities
Granting
Mr.
velt's
tion,
that
pay¬
some
public at the WhittHouse Jan. 12, said:
"I accede to your wishes only
fusion.
Pure interest, in Mr. Potter's
is the means by which the
efficient and frugal pass from a
,
sense,
Widespread
not
are
savings
of
pearance
under
a
University
tant
Harvard
of
Law
the
American
in that
economic
position
part of the world."
Before
going to
the
Middle
East, Mr. Landis was Director of
the
Office
and
before
of
•
Civilian
that
Defense
Chairman
of the
Securities and Exchange Commis¬
sion.
With his return from Cairo Mr.
Landis
in
reported
was
Jan.
on
9
Washington advices to the New
"Times"
York
freer world
war
nomic
one
must
still
in
Russia,
permitted eco¬
was
securitv
except
on
the
,
State's terms, the benefits and the
costs are still uncorrelated.
John Hicks concludes his recent
important study (Value and Capi¬
tal, p. 302) on the following du¬
bious c0te:
the
thought
whole
the
cannot
that
Industrial
last
been
two
suppress
perhans
the
Revolution
hundred
nothing
*ecular
the
"One
el*e
years
also
as
bnt
vest
a
boom
Tf this
is so,;
it would helo
to explain whv, as the wisest held,
it
has been
episode
much
in
such
fit
disappointing
human
simpler
wou'd
a
the
history."
explanation
same
facts
A
that,
more
snugly is that the Industrial Revo¬
lution
was
induced
was
a
by
based
vast
secular
boom
over-investment that
on
forced
in the post¬
"Times"
account; we
the
quote:
"Valuable
experience in restor¬
ing normal trade, said Mr. Lan¬
dis, had been gained by the mis¬
sion, and he hoped it would help
in the progressive removal of con¬
"The
the
the
harm
State
of
saving,
New
is
country,
likely to
well
as
as
State of New
York, if the
proposed legislation is adopted in
considered at all.
conciliation rather
solved by the use of an axe.
Not
the
"It
of
encouragement
among
continu¬
credit lend-lease
of
civ¬
ilian goods to British colonies and
mandates
theory
was
in
that
not
this
region
lend-lease
on
the
them
to
longer demanded by the
exigencies of the war.
And, in
eliminating lend-lease as a meth¬
od of procurement
it
restored
in other areas,
the
importation
of
goods to normal trade channels."
Consumption
The Census Bureau at Washing¬
on
Feb. 15 issued its report
ton
showing
consumed In
the
United States, cotton on hand
active
cotton
spindles
in
ahd
month
In
cotton
of
January.
bill
the
to
Commission
a
consumed
1945.
amounted
to
of lint and 128,781
bales of linters, as compared with
760,740 bales of lint and 120,498
849,945 bales
bales
of
cum¬
linters
bales
in December
of
lint
and
and
98.887
ulative income displacement, and ;
bales of linters in January, 1944.
cumulative maldistribution of inIn the six months endine Jan.
31, cotton consumption
was
4,877,-
A
supplier
vestments
to
churches, or an architect
building such churches will re¬
quire employees steeped in the
Catholic
tradition.
butcher
Who
employ gentiles.
legitimately object to
can
all-French
an
or
A
•
.
solicitor
an
all-Negro
or
insurance
or
salesman
dealing with a particular
foreigners who is one of
obviously have better
of
class
them
all-Scandi¬
an
navian restaurant
show?
kosher
A
cannot
will
chanees
is not.
of
.
.
than
success
who
one
:Vf
.
•
.
"These, and other differences in
the
needs
and
characteristics
of
different businesses and different
to
ignore
unrealistic
them
it should be
The
well
as
would
be
as
amended."
Association proposes seven
amendments.
create
NACM
Committee
the
"The
a
members
Association
conflict
between
the
the confusion and economic effect
of
taxation
schedules, all seem
indicate
that
would
Mr.
be
such
commis¬
a
Heimann
most
points
advisable,"
out.
"This
"would
analyze
facts
and
reflation
in
report
to
our
over¬
inter-governmental
structure.'
There
are
other
tax
pro¬
declaration
recent
Heimann
large*"
the worthy
Credit
taxing bodies, the present
overlapping of our tax measures,
to
the
points
of note.
of
v of
various
sion
follows
Taxation, Mr.
on
the viewpoint of
of
National
Men.
commission
tax
a
on
the
Commission
the
sphere
of
It would
seek
to
taxation
the three
among
out,
have
define
function
different
of government."
"The purposes
of
of
and
this
levels
bill
so
parallel the resolution adopted by
our
own
organization," Mr. Hei¬
mann said, "that it is
only natural
have a great interest in it.
believe it is wqrthy of study
we
We
and
deserving of support.
get
can
taxation
our
If
we
muddle
cleared
away, such action would
contribute
tremendously to the
welfare of the nation." As
of
a means
further
181 bales of lint and
centralizing its effort
on
the question of taxation, Mr.
Heimann pointed out that a spe¬
of
cial
visions
in
this
bill
which
are
743,798 bales
linters, compared with 5,091,116
bales
of lint and
6^2,171 bales of
linters in the corresponding period
a
questionnaire
is
being
now
prepared to elicit facts which
be
presented to the
can
year ago.
Con¬
gressional Committee considering
There
the tax
2,291,251 bales of
289,596 bales of linters
on
hand in consuming establish¬
ments
on
Jan.
31, 1945, which
compares with 2,313,656 bales of
lint and 270,851 bales of linters on
Dec. 31, 1944, and with 2,380,963
lint
of lmt and 466,281
linters
On
at
were
and
on
Jan.
hand
in
compresses
there
were
and 27.259
compares
31,
bales of
1944.
public storage and
on
Jan. 31, 1945,
12,991,042 bales of lint
bales of
linters, which
with 13,396,441 bales of
lint and 25.747 bales of linters
the month of January,
cotton
the
ecclesiastical
now before Congress, H. R.
1410,
Taxation, is given m his Monthly Busi¬
ness Review by Henry H. Heimann, Executive Manager of the Na¬
tional Association of Credit Men, which was released on Feb. 15. This
bales
Jan. Cotton
of
or
case
General endorsement of the bill
to establish
nations.
did away with the
ation of
free
proper
Report on Tax
Structure Approved by Credit ien
lapping
and
a
for Commission to
be better assured
by the elimina¬
in
may
enter into the choice.
lation with great care and if it is
to be enacted into law we believe
and
upon
con¬
religion
race
education
than upon force.
"The problem of discrimination
is
complicated
and
cannot
be
com¬
the
-
employee's
an
unjust. We
have studied the proposed legis¬
now
pile,
in
job.
"Even
introduced by the
Commission and should rely upon
as
authorize the commission to
States
judgment shows to be best fitted
for that
case;
moderate than those of
more
the bill
viction that peace and prosperity
in the area (Middle East) could
United
those shall be employed for a par¬
ticular job whom a discriminating
lines
number
the
efficiency,
jobs, must not be lost sight of by
laying down a rigid general rule
against discrimination in every
expresses
throughtout the
permit.
"In the Middle East, he said,
lend-lease for civilian goods had
been
virtually
eliminated,
and
only those controls required to
insure
equitable distribution of
the goods imported were retained.
conditions
its
and
"Stated generally, the proposed
legislation should be drawn along
world
as
business
and, above all,• to his employees,
use discrimination in selecting
his employees,
to the end that
to
Catholic
which
the
his
the
A.
'
to
the
even
suggested,
proposed
produce serious
people and the
that
may
of
.
trols and barriers
818,724
come.
business
York.
and
commerce
of
has
largelv induced by
unnaralleled rise in popula¬
tion.
legislation
dangers to
result
legislation,
of
amendments
fears
era.
From
made government monoono
the
our
conceal
wisdom
your
commerce
where
or
to
the
of
Even if saving and invest¬
were
proposed
with
to
to
as
the
saved.
they
the
wish
not
period of service by immigration from other States
Department of State and by the accompanying changes,
and the Foreign Economic Ad¬ such as the creation of additional
ministration, with personal rank problems of employment, relief
of minister, you have contributed and housing, is so serious that we
greatly in resolving the numer- venture to suggest that the entire
our and intricate economic prob¬
question ought to be submitted to
lems which una^r conditions of the Council of State Governments,
war
have beset the countries of to the end that uniform legislation
the Middle East.
At the same on this subject may be adopted
time, you have added prestige to in the several States if it is to be
"During
tion of artificial barriers of trade
as
do.
doubts
the disap¬
investment
de¬
this State and not in other States,
School.
be present in the economy, they
will not accrue to those who have
are
"We
our
bill (H. R. 1410)," he says,
saving
bill"
pending
statement
sible head the economic activities
interest. Though
of forced saving
government
benefits
can
our
the
clares:
well that Harvard
no
longer spare
heavy and impor¬
responsibilities as dean of
from
you
of
Association's
that
funds
means
pure
program
through
'the
of
the
"The mission," he said, "was or¬
ganized under my direction to
bring together under one respon¬
propertied estate.
loans
know full
I
as
sec
situation of hopeless con¬
a
made
channels
these
nroletarian to
duration.
President Roose¬
acceptance of his resigna¬
year
economists
orice, wage and income structure.
To achieve proximate ends by be¬
lying the price structure is to
a
a
expressing a
conversion of
problems directly
reform.
We may then
look for the result in an altered
create
over
normal
social
by
covered
to
qualities grievously disturbing, the
remedy is not to falsify our prin¬
cipal guide to economic truth, but
attack
which
mission
trade
tions of the economy may present
to
in- press
known
Washington Jan. 12
Landis
recently returned
Cairo, after concluding a
speedy?
justification of interest
a
ments.
School.
for
none
and moralists alike have looked to
as
made
Law
as
of
have
which
Harvard
post
hope
saved;.therefore, the loan of
such
former
advices from
been made from
expanded credit.
Newly created funds never having
been income, could
never
have
Economic
his
to
return
with
being made.
are
thing that can reason¬
ably be demanded of a price struc¬
ture is that it be accurate, that it
faithfully record the relative val¬
uations by the community of all
olies
Every value item is arrived at
price
renders
the size
ing
savings."
and
demonstrated.
handle
which would
prices changed only
in response to cost factors and not
to monetary factors as well. This
produce
can
wage
sary
if
structive recommendations for im¬
from
Hav¬
has
to
claims of its
creation.
Landis
of
and
was
own
Operations
Opposed by Gomm.-lnd. Group
Proposed legislation to prevent and eliminate practices of dis¬
crimination in employment and otherwise because of
race, creed,
color or national origin, if passed, will prove to be most harmful to
the people of New York State, in the opinion of the Commerce and
Industry Association of New York, Inc., in a statement proposing
certain amendments, submitted to members of the State
Assembly,
and released on Feb. 15 by Asso-<ociation Secretary Thomas Jeffer¬
all discrimination is wrong. Every
son
Miley.
In making its "con¬ employer owes it to himself, to
resigned
Opera¬
principal
American
representative in the Middle East
tions
This
Fascism
of interest and asso¬
M.
Director
as
un¬
Discrimination
Trade Controls
James
of
Hitler
on
that rate
price.
a
Legislation to Prevent Race and Greed
as
Favors Removal of World
dean
sired
savings," or as that re¬
turn (apart from price changes)
"which investments must yield to
maintenance capital values," i.e.,
as
as
Economic
necessary" is a formula that is be¬
coming commonplace. The mean¬
ing is that tne government which
has complete control of the cur¬
rency
subject to
no
objective
criteria
can
endlessly
borrow
government
it would be "if
as
in fact dependent en¬
were
of interest
weighted
a
ing this complete control of the
supply of money, and combining
it with a flexible tax system, the
"pure"
interest unaffected
as
price changes,
loans
of
construct
Resigns
Director of
be
may
"Keynes has rendered Marx
which
obsolescence
overlooked
attempt .to
is mat the
comitant
been
Landis
FINANCIAL CHRONICLE
Dec.
of lint and
on
Jan.
There
spindles
1945,
on
31, 1944, and 12,114,990 bales
82.577
bales of linters
31, 1944.
which
compares
with
22,-
219,768 cotton spindles active dur¬
ing December, 1944, and with 22,-
commission bill.
Pointing out that the severe
winter
might bring blessing or
disaster,
men's
the
chief
that
that might
areas
blanketed
so
to
as
floods,
the
credit
offered
the
preventive
any
work
be done
in
by record
the
snows
bring protection against
should
be
attempted at
a critical
"Certainly here is
once.
need
of
organization
suggestion
for labor and
no
one
would
deny that the utilization of labor
in
this
respect
nificant
would
contribution
be
to
a
sig¬
the
war
effort for much of the production
as well
as the food of the nation
is
22,260,628
cotton
active during January,
were
proper
found
within
ered by these
the
heavy
areas
cov¬
Per¬
snows.
manent- protection
against floods
requires long range planning, but
there is
be had
218.?n2 active ^ton spindles dur¬
urps
ing January, 1944.
taken
some
nrotection that
through temporary
and
tbe*e
without delay."
be
can.
meas-
under¬
THE COMMERCIAL &
866
Thursday, February 22, 1945
FINANCIAL CHRONICLE
pacific procedures provided in
plan shall be, applied' before'
the application of force whenever
an international dispute .arises.
the
Conference
Stettiniiis to Head U. S. Group
Proposals
Dumbarton Oaks
on
Secretary of State Edward R. Stettinius heads
proposals for a world security organization
United Nations Conference to be held at San
The Dumbarton' Oaks
will be the subject
of a
April 25.
Announcement of the plans for the confer¬
ence followed President Roosevelt's message to Congress on Feb.
12
in which he referred to his budget message of Jan. 9, calling attention
to the need for immediate action on the Bretton Woods proposals for
Francisco
on
international
an
fund*'—~
monetary
international bank for re¬
construction and development. It
and
an
United States at the
~
"
San Francisco
special advices from
Washington Feb. 13 to the New
York
"Times"-stated
that the
Conference,
the
Inter-American Conference in Mexico City
25
To Be Held a! San Francisco Apr!!
Attending
the United States
Compulsory
registration
of
with the organization's
treaties
group of delegates participating in the conference of American Re¬
publics on war and post-war problems scheduled to open in Mexico
City yesterday (Feb. 21).
In addition to four members of Congress
slated to attend the conference, officials of organizations representing
secretariat.
many segments of the American community will also be official par¬
ticipants, according to Carl Levin,
while others want assurances that
in Washington advices to the New
York "Herald Tribune" on Feb. 10, Latin America will occupy three
inclusion of the
which also said in part:
four
or
non-permanent
the
of
from
court
d
"essential
p r o p o se
the
;;
of the organization and
economic and so¬
organs"
cial
the
of
Exclusion
world
council.
Provision for a security
meeting
least
at
every
council
three
months.
in this message, the
The members of Congress who seats.
Secretary Stettinius, who par¬
Congress Feb. 12,
will go to the meeting, starting
Brazil, Venezuela and Mexico ticipated in the recent "Big Three"
to
indicate
the
importance
of delegation will include Cordell Feb. 21, as special advisers to the objected to the name "United Na¬ Crimea conference, met in ad¬
these international
organizations Hull, former Secretary of State, United States delegate, Edward R. tions."
of
that
gathering
with,
Brazil said it was
"in¬ vance
who will serve as its senior ad¬
in our plans for a peaceful and
Stettinius, Jr., Secretary of State, expressive" and suggested "union Harry Hopkins in Rome, Italy. viser; four members of Congress, are Senator Tom Connally (Dem.of
prosperous world.
In his Feb. 12
nations";
Mexico
proposed Under date of Jan. 31 Associated
and two others.
The latter six
message
the President likewise
Texas), Chairman of the Senate "permaient
union
of nations," Press advices from Rome stated:
Their -(Messrs.
said:
Foreign Relations Committee; Sen¬ and Venezuela said the war-time
Stettinius and;
Senator Tom Connally, Demo¬ ator Warren R. Austin
If we are to measure up to the
(Rep.-Vt.), connotation of "United Nations" Hopkins) flying visits were said •
crat,
of
Texas,
Chairman
of
the
also a member of the Senate Com¬ was not very appropriate for a by Mr. Hopkins to be part of the ■
task of peace with the same sta¬
Committee on Foreign Relations;
ture .as we have measured up to
preliminaries
leading
to
the •;
mittee; Representative Sol Bloom peace organization.
Senator Arthur H.
Vandenberg,
The
(Dem.-N. Y.), Chairman of the
the task of war, we must see that
highlights Mexico's rec¬ Roosevelt-Stalin-Churchill meet- y
Republican,
of
Michigan,
author
House
ommendation
follow:
Foreign Affairs Committee,
ing. An official announcement of
the. institutions
of
peace
rest
of the resolution proposing an im¬ and Representative Edith Nourse
Powers for the assembly corre¬ the conferences was issued after firmly on the solid foundations of
mediate agreement by the Allies Rogers of Massachusetts, a rank¬
international political and
sponding
to
its
representative Secretary Stettinius and Mr. Hop- eco¬
for keeping Germany and Japan ing minority member of the House character in a democratic system. kins, who is the President's per- nomic cooperation.
The corner¬
Designation of council members sonal representative, boarded;
stone
for international political permanently demilitarized; Rep¬ Committee.
resentative Sol Bloom, Democrat,
In the event that Mr. Bloom is "according
,
to their
degree of planes and left this war theatre.,
cooperation
is
the
Dumbarton
Mr.
unable to make the trip, he will international responsibility for the
Hopkins went to Allied
Oaks proposal for a permanent of New York, Chairman of the
House Committee on Foreign Af¬ be
Headquarters yesterday from con¬
replaced
by
Representative maintenance of peace."
United Nations. •
/v
Luther A. Johnson of Texas, the
A prohibition against voting on ferences in Rome in which he saw *
The
President
further stated fairs; Representative Charles A.
Italian
next
Foreign Minister De Gashighest
ranking majority its own case by a big power which
that the United States should act Eaton, Republican of NeW Jersey,
peri, had an audience with Pope
is party to a dispute.
ranking minority member of the member of the Committee.
promptly upon the plan for the
Pius
and
conferred with AlexanFrom the list of 38 persons who
House
Committee;
Commander
A.pledge by ajl states to incor¬
international
bank,
which will
Harold Stassen, former Governor will go to Mexico City for the porate international law into their der Kirk, United States Ambas¬
make or guarantee sound loans
sador to Italy.
By his own state¬
of Minnesota and a strong advo¬ conference it is evident that Sec¬ national law.
for the foreign currency require¬
Stettinius intends to go
Adoption by the world organi¬ ment he looked closely into rec-v
cate of international collaboration retary
ments
of important reconstruc¬
ords relating to Allied political af¬
for peace, and Dean Virginia Gil- prepared not only for political dis¬ zation of a declaration on the in¬
tion and development projects in
cussions but also for economic dis¬ ternational rights and duties of fairs in Italy.
dersleeve of Barnard College.
member countries.
The report on the "Big Three"
and creation of a special
The designation of Mr. Hull in¬ cussions of a nature which may man,
At the same time the President
show the other American repub¬ organ to supervise its observance. conference appeared in our Feb.;;
dicated that the former Secretary,
recommended prompt action by
lics how closely their future is tied
Provision that at least one of 15 issue, page 746.
who has been a patient at the
the Congress to provide the sub¬
to that of the United States.
Naval Hospital at Bethesda, Md.,
scription of the United States to
Under date of Feb. 10, United
would be able to leave the hospi¬
the international monetary fund
Press accounts from Washington
tal before the meeting date of the
and the legislation necessary for
appearing in the "Herald Tribune"
conference.
our membership in the fund.
He
said;
is my purpose
told
President
.
Representative Assailed by "Pravda" for
'
added:
bank
together
sound
most
the
and
represent one of
and useful pro¬
posals for international collabora¬
tion now before us.
On the other
of
advices
also quote:
we
,
projected the possibility
of the
It also
that he would be chairman
President
accepting his resig¬
conference, inasmuch as
Roosevelt
in
nation
Secretary
as
of
State re¬
proposed that mem¬
bership in the world security or¬
ganization be "universal and obli-.
gatory" — thus including present
enemies, but with rights restricted
in the beginning, it was revealed
Mexico has
with
tonight.
ferred to him as the father of the
Mexico proposed 28 changes in
you
the. impression that these
United Nations and expressed "the
the Dumbarton Oaks plans in a
proposals for the fund and bank
hope that he would serve as chair¬ handbook for delegates to the
are perfect in every detail.
man
of
the
conference,
which forthcoming
"Inter-A m e r i c a n
The President's Feb. 12 message
hand, I do not want to leave
■
13
Feb.
"Times"
the
From
•
international v; fund
The
Congress came just as the re¬
to
port of the Crimea Conference of
President Roosevelt, Prime Min¬
Stalin
was made available, and in Asso¬
ciated Press advices from Wash¬
ister Churchill and Premier
ington
on
drawn
were
of
curtains
secrecy
from the conference
This
revealed
Three had agreed
not only on mighty new blows to
crush
Nazism
and
permanently
late
yesterday.
that
the
Big
disarm Germany, but also on sev¬
eral
pieces of specific peace ma¬
chinery to guarantee independ¬
ence
and
self-determination
to
the small countries of Europe.
A
formula for creating a new Gov¬
ernment in Poland which will be
acceptable to all three powers is
included.
The
leaders
three
the
compromised
apparently
split
between
the United States and Russia over
rights of the Great
the proposed Dum¬
barton Oaks security plan.
This
the
voting
Powers
in
cleared
the
Nations
conference
cided
on
way
the United
they de¬
for
and
call it for San Francisco
to
That is the date by
April 25.
which Russia
must
denounce her
non-aggression treaty with Japan
if it is not to
run
for another five
hand in the Dumbarton
Oaks Con¬
Mr.
Stettinius
dis¬
this
fact, terming it a coincidence. But
it raised all over again specula¬
Diplomatic
the
counted
officials
selection
The
of
now
declared
to Roosevelt and Churchill
tention
to
enter the
war
an
in
in¬
Asia
military conditions in
Eu¬
permit.
of
was
part
Big Three announcement,
City
on
same
Feb. 21.
Furthermore, the
in
delegates who will represent
"Red Star,"^participate in ernment in London had "been
acting in unison with Berlin," and
reorganized Warsaw regime.
added: "Mikolajczyk has aligned
"Pravda" spoke out on the eve
Russian Army paper,
hinted
had
a
of
negotiations here to revise the
and security organiza¬
include
would
which
itself
They
vote.
the
council
the powers
eleven-nation
believe
proposed
should
be
matched
with
said,
"Pravda"
O'Konski,
Fascist
believe
and
abroad."
a
ity council, the latter the decision¬
making body.
Americans,
broader
leaders from
from
Poles
democratic
of
Poland
repeated
Latin
called for "a
Conference
large assembly and a small secur¬
of
might
had
"a dirty insinuation of
propaganda
liberated Poland and
concerning
the Baltic."
"Against a background of un¬
precedented unanimity of view
toward the Crimea Conference in
States
United
the
and
England,
speech of Rep. A. E. O'Kon¬
ski attracted
general attention,"
"Pravda" said. "From the tribune
*
himself with Arciszewski (Tomasz
Arciszewski, Premier in the Lon-.
state-»
don regime), having made a
against the Crimea decisions
ment
in the
press.''
[In a letter to "The London;
Daily Herald" last Friday, Miko¬
lajczyk urged that the City of
Lwow and the Galician oilfields v
Poland's
borders,
contrary to the Crimea
ence's proposed Curzon
Confer¬
line set¬
within
remain
which
tlement,
would
give
both
So-
Lwow and the oilfields to the
viet
Union.]
the
Results Of Treasury
Representatives
he spoke like Goebbels (German
sembly in matters relating to se¬ Propaganda Minister Dr. Paul Jo¬
The Secretary of the Treasury
Republican, of Massachusetts, is a curity.
seph Goebbels).
Most surprising announced on Feb. 19 that the
member of the delegation to the
In
any
event, all the Latin- was that some Republicans in the
tenders of $1,300,000,000 or there- \
Mexico City conference.
American
nations believe Latin House approved this political buf¬
abouts, of 90-day Treasury bills
President Roosevelt, Prime Min¬ America should have a guaranty foonery. Mr. O'Konski is opposed
to be dated Feb. 23 and to mature
ister Churchill and Premier Stalin of representation on the council.
to a long list of prominent mem¬
May 24, 1945, which were offered
during the Crimean meeting at Some want a permanent seat, bers of the American Congress, in¬
on
Feb. 16, were opened at the
Yalta cabled to Mr. Hull their
cluding former isolationists, who Federal Reserve Banks on Feb. 19. v
wishes for "speedy recovery." The
welcomed
the
Crimea
decisions."
Eden, Mr. Molotov and yourself.
The details of this issue are as
Mr.
O'Konski told the House
message, sent by Secretary Stet- Please convey my grateful appre¬
follows:
inius, said:
ciation to each of them, together last Tuesday (Feb. 13) that the
Total applied for $1,887,678,000^f
appointment
of a woman
member of the delegation. Repre¬
sentative
Edith Nourse
Rogers,
the
.
.
increased
authority
with
fervent
for
the
wish
for
of
the
House
of
Bill
as¬
"I have been instructed to trans¬
my
the
in their
undertaking now and in
settlement
over
Poland
repre¬
for Goebbels
fullest measure of success
sented
on
immense
"second only to that
to you
behalf of the undersigned who
were
guests of the Prime Minister
'We
have
conference
dinner:'
missed
and
to
at this
you
our
We wish
for you a speedy recovery in order
that all of us may have the bene¬
fit of association with you again.
affectionate
"
'Signed:
Churchill,
greetings.
Roosevelt,
Stalin,
Molotoff, Eden, Stet-
Mr. Hull replied as follows:
"I
dent
am
in receipt of your cable of
cordial
of greeting from Presi¬
Prime Minister
Roosevelt,
the Churchill,
Marshal
Stalin,
Mr.
Connally,
when
formed of his selection as a
in¬
dele¬
success
a
of Munich."
parents,
he declared : "the selling out of
Poland is a stab in the back to
The
the future."
Senator
you
send
Offering
.
mit the following message
message
of the
peace
one
pattern has been followed
party newspaper also attacked former Premier
London Polish Government, who, the.
The Communist
sion
plan calls
dispatch from
Stanislaw Mikolajczyk, of the
democratic basis, with the inclu¬
the delegation is the plans "suffer from the capital
appointed for defect of ignoring the assembly'-rthe
Inter-American
Conference, the body in which all nations
which
will
convene
in Mexico would have seats and an equal
the
to
publicans and
names
a
tion
Poland, it was disclosed in an Associated Press
on Feb. 18, which said:
published the book and in¬
commentaries from nine
The Dumbarton Oaks
for
on
Moscow
Warsaw Government. The Crimea
The
In that respect
similar
Feb. 11 transmitting a most
Democrats.
of War
tion
Pan American
The
nine major points, was
hailed at the Capitol by both Re¬
indicating the
Union
Problems
on
Peace."
cluded
cisco.
inius.'"
covering
In
of
members
made in recognition
which the Senate
would
play
in
approving
the
charter of the security organiza¬
tion to be drafted at San Fran¬
the
of
Conference
and
Latin-American nations.
presided.
here
significance
tion that Stalin had
The
which
at
ference,
"
rope
being planned.
a
guiding
exercised
this evening at
years.
when
was
Hull
Mr.
Congress
Feb. 13 it was stated:
dark
The
then
even
Criticism of Yalta Declaration on Poland
Representative Alvin E. O'Konski, Republican of Wisconsin, was
assailed on Feb. 18 by "Pravda," in his criticism of the Yalta declara- •:
Polish-born
of
son
freedom
a
denunciation- of
the Atlantic Charter."
"The* President recognizes the
:
[In reply to the "Pravda" at¬
functions of the Senate and his
tack Mr. O'Konski said Sunday at
action indicates his desire to have
Milwaukee: "If any one else called
the utmost cooperation between
the Senate and the Executive.
I me a Fascist I would be very wor¬
ried.
I despise Fascists and Nazis
feel that the members of the Sen¬
with my whole soul, but when
ate designated by the President
'Pravda' calls me a Fascist I am
as
members of the delegation to
the
United
Nations Conference not worried, because they call any
one that who does not agree with
will cooperate with the Executive
the
Russian
position on any¬
Department in striving to secure
the best possible organization for thing."]
"Pravda" said the Polish Gov¬
world peace and security."
gate, said:
.
.
.
accepted $1,308,371,000 (in¬
Total
cludes
$65,660,000 entered on a
basis at 99.905 and ac¬
fixed price
cepted in full).
Average price 99.906, equiva¬
lent
rate
of
discount approxi¬
mately 0.376% per annum. Range of accepted competitve
bids:
V-High, 99.910, equivalent rate of
discount
approximately
0.360%
per annum.
Low, 99.905, equivalent rate
discount
approximately
of
0.376%
per annum.
(77% of the amount bid for at
price was accepted.)
the low
There was a maturity of a sim¬
ilar
the
issue
of
amount
bills
on
Feb. 23
of $1,313,528,000.
in
.Volume 161
Number 4362
THE COMMERCIAL & FINANCIAL' CHRONICLE
Steel Operations Again
Rise—Buying Less
Chester Bowles
Active—Present Delivery Situation Tight
"Although steer order volume through the first half of February
20% to 30% less than in the corresponding Janu¬
ary period, such statistics are far from significant in appraising the
867
Says He Has Been
(Continued from first page)
their context and
say;
"Furthermore, such
will
have little
or
decline
a
effect
no
"Much
the
of
order
volume in
recent weeks has been far
one
month ago, and
one
year
of the iron and steel
mary
kets,
-Board this past week found on its
-hands requirements for more than
>140,000
with the aid of direc-
but the peak of the current buy¬
ing movement appears to be over.
Requirements for most of the im¬
further indication
portant
new
covered
for
tons
cannot
months
•
of
even
lives.
sheets
schedule
As
a
which
for
to what the accelerated
ture has
try,
done to
•turned away in
"With
•tended
.less.
been
have
become
so
Drum
are
filled
through to the end of this
year,
while
give
most producers can
closer promises than De¬
no
cember
for
galvanized
sheets.
-Carbon bars have become
so
that November deliveries
be¬
ing promised. Because of this sit¬
uation, which is similar for many
"other
steel
products,
steel
some
believe it to be extremely
that orders for
those
sources
"doubtful
products, which are
tended, will ever be
especially if the war
should suddenly end,
"While
the
far
so
ex¬
of
the
close
orders
as
believe. Un¬
last fall when victory
in Europe
was
expected, has caused a far
larger safety factor in the form of
tual
necessary.
tion
demands than
war
needs
even¬
will
probably prove
Nevertheless, such ac¬
be taken since it is the
must
price to be paid for
a war
of such
gigantic proportions.
The orders
now
on
the books, even though
they may in part turn out later
.to be unnecessary,
dp, today, rep¬
resent realities.
dous
order
backlogs
overs
volume,
and
tremen¬
a
increased
substantial
carry¬
will in themselves probably
the
within
cause,
future,
near
a
complete reappraisal of the steel
.demand
situation.
rective
in
is
production di¬
expected to be boosted
in March and
will
tonnage
be
the
increase
considerable.
The significance of such an expan¬
sion will make it more difficult to
honor
allotment
tickets
for
rails,
semi-finished steel and structural
products."
The
v
American
Institute
on
Iron
Feb.
and
Steel
19; announced
that telegraphic reports which it
.had received indicated that the
operating rate of steel companies
having 94% of the steel capacity
of
the
industry will be 96.4%
capacity for
the week
of
beginning
Feb. 19, compared with 91.4%
one
week
ago
and
affo,
97.7%
These
91.2%
one
rates
one
year
of
month
ago.
operation
are
based
in
January,
The revised rates of
operation for the first
are:
Jan.
Jan.
seven
weeks
Jan. 1, 94.3%; Jan 8,
15, 92.2%; Jan. 22,
29, 88.7%; Feb. 5,
.87.9%, and Feb. 12, 91.4%.
The operating rate for the week
beginning Feb. 19 is equivalent to
1,765,700 tons of steel ingots and
castings,
tons
one
The
any
tonnage
since
month
daily shipments were 58,115 tons,
compared \yith 67,984 tons daily
in December.
v
"Steelmaking
compared
week ago,
to
is
vital
that
food
products
quotations
letter to Marvin Jones
are
appropriate.
They indicate
clearly that the central problem
from
was
my
not
"a
Bowles'
do
result
desire
already of Mr.
for
something
his
and
bureau
not
to
avoid
cumulation; fearing
the
European
Cast
grades
put
iron.
to ration
at all.
going to attempt
effectively or not
meats
The quotations follow:
burden
more
weak
and
plentiful
if
the
only grade-below ceilings.
Some
allocating is being done to relieve
of
Domestic
shipments of rayon
and staple, fiber during Jan¬
totaled
divided
ment
63,500,000
pounds,
49,800,000 pounds of fila¬
13,700,000 pounds
and
yarn
of staple
fiber, states the Febru¬
ary "Rayon Organon," published
by the Textile Economics Bureau,
Inc., which states that "these data
with
December, 1944,
shipments of 49,000,000 pounds of
compare
and
yarn
staple
13,600,000.
or
a
•
total
pounds
of
of
62,600,000
pounds of rayon.
Comparative
figures for January, 1944, show
total
shipments of 55,400,up of 41,500,000
pounds of yarn
and
13,900,000
pounds of staple fiber." The Bu¬
made
reau's advices Feb. 8 further said:
"Total
stocks
rayon
hands,
9,400,000
in
Jan. 31st
on
pounds.
pro¬
aggre¬
Of
this
quantity, 6,700,000 pounds repre¬
sented yarn and 2,700,000
pounds
was staple fiber.
Year end 1944
stocks stood, at
low of 8,800,000
a
pounds, of which 6,100,000 pounds
was
rayon
pounds
was
"While
and
yarn
2,700,000
staple fiber.
rayon
were
level last year,
production
at
a-new
paid
staff
the
and
to
answers
landlords
and
business
men,
others who seek
individual decision.
or
If it had been possible to aban¬
don
the
rationing
and
meats
canned
program on
foods entirely
would have been able to trans¬
sufficient personnel to take
of
care
requirements in other
our
departments. This in turn would
have made it unnecessary for us
to appeal to Congress for a de¬
ficiency appropriation
as we were
forced to do last week.
Finally,
you
that
comment
made
we
mistake
a
and
much of this in-
tremendous
cancelling the blue stamps. This
is a complete
misunderstanding.
I haven't said it
cancel
was
a
mistake to
rationing stamps. If
excess
had lacked the courage to take
this obviously distasteful step the
equitable
distribution
of
meats
and canned food would have been
absolutely impossible in view of
the present shortages.
I said it
was
mistake
a
to
in
located
each
and
ft
com¬
view
of
the
ever-present
un¬
certainties in wartime supplies.
I am sure that Marvin
Jones,
to whom I am
sending a
copy of
this letter, will object as I do to
the
misinterpretation of
Jan. 18 article.
my
be
bank.
located
tional Bank
five
past
in
The
the
Na¬
Building.
Office of Price
Administration,
Washington, D. C.,
Instead,
organization is presently
represented throughout the coun¬
try with 50 organized Conferences,
own
yarn
in
came
program,
gram,"
the
100%
a
the
says
viscose
war
"Organon."
It
adds;
total
of
:
uses
of rayon, from
shipments, the 'free supply'
rayon
second
available
yarns
half
of
1944
in
the
amounted
to
only 168,000,000 pounds compared
with
210,000,000 pounds in the
first half of
1939
six
months'
175,000,000
known
1941 and
total
pounds.
rated
an
and
average
of
over
Based
on
programmed
during the first six months
>1945, the 'Organon' estimates
uses
of
that this 'free
to
supply' will decline
under 150,000,000 pounds. These
ing
of
essential
civilian
rayon
cloths under WPB proposed Order
M-400."
Yalta
went, according
pression
It
is
and
believed
the
to
his
when
mal
says
the
travel
number
of
be
new
head¬
Others of
have been
of
a
them
little
sacrifices
the
The
One
but
"What
is
said to
quiet
sort
prevail, a
organized Con¬
additional
advantage
headquarters
office
was
R.
1940,
Cochard, for¬
a
the other day: Daddy,
140 million
people, the,
have
Russians
180
some
about
million;
the French
45 million
and Britain
that
why can't
Germany
many,
we
go ahead and lick
with only 80 million?"
What further worried the Con¬
day he
had
figured out, and had it con¬
firmed by the military, that of the
11 million men we have in the
forces, because of the dis¬
they
million
one
fighting,
are
available
are
combat.
Bringing this .down,
told
by returning war
are
have
lines
on
more
no
time do
than 150,000 in the
the Western front.
But you've got to admit that
the world "has shrunk," that
any
country, regardless of how re¬
is always in danger from
another country, that we have
mote,
come
to be
aviation,
a
"closely knit unit"—
understand,
has
we
other
conditions
of
us*.
me
proved
nor¬
over
-
worrying me' is that
10-year-old daughter
little
have
more
leaders
-
a
any
Darrell
the
Congressman, right influ¬
fellow, said to
that way—you've got
to admit it, because this
country,
it,
country, however,
and
at
a
sacrifice, and is-having
proving it.
ghastly
an
awful
time
Auditor,
Society for Savings in
Cleveland. For the first ten years,
1924-1934, the Editor was A. H.
Laning, now Vice-President and
Cashier, Federal Reserve Bank of
Cleveland.
opened in Cleveland Jan. 1,
when
than
feeling
the leaders
impose
'
ential
has
back
that
could
here.
we
sacrifice imposers
to Russia and all
come
ashamed
there
over
has
and
in
large increase of Associate
Members who will then desire to
receive
our
over
have
not
It
to
inefficiency of the Army
Navy heads, comes back im¬
with the spirit of sacrifice.
is
Conference
is ended
said
the
and
the Association, that
new
Stalin
nothing like the
conditions
on
our ' home
front,
why not get in the big leagues
of sacrificing?"
Anyhow, Jimmy,.,
who a few weeks ago was burn-'*
ing up at what he considered to
us
war
home front,
our
"That's
brought
inactive
one
on
that
Jimmy:
we
available to Conference members.
programmed
Jimmy
from
correspondents that at
Manila, Philippine Islands.
"After taking out all rated and
President
back
the conditions
only
tire, ent
pro¬
get a directive from
just
he
Confer¬
Germany
by now.
explanation,
to
help
the
in telling Stalin about
armed
ferences will result from the pres¬
crease
we
Assistant
Byrnes
tances at which
Feb. 14, 1945.
certain,
The
Yalta
gressman is that that very
CHESTER BOWLES,
Administrator.
years.
office
First
the
of
and ask, oh yes,
must be about crushed
letter
in your
Chicago will provide national office facilities centrally
easily accessible to<£
member
will
the
matter
ence,
my
make
increasing membership, and in preparation for
postwar expansion, the National Association of Bank Auditors and
Comptrollers will, on March 1, establish its headquarters office in
Chicago. /"It will be transferred from Cleveland where it has been
during
that
significance,
I
in
Auditors & Comptrollers To Be in Chicago
its
data do not give effect to the rat¬
high
Nimitz and
about
we
located
imminent
about MacArthur and
bued
Headquarters of Nat'! Assn. of Bank
quarters
the
a
come
for
rayon
j 000 pounds
un¬
Incident to
January Rayon Shipments
uary
large
a
time and attention of thousands
shortages~in essential cases."
yarn
many
as
con¬
almost
are
the pro¬
good in dis¬
pig
on
fhe shell program
increases,
unquestionably
doing some
tributing meat. But I question
seriously if it is- doing enough
good to justify the employment
ends suddenly.
in small supply
are
Borings,
tinue
that
ac¬
setback
a■
to
in
war
added
an
undue
leads
mitment, either directly or by in¬
ference, that we would not cancel
scrap
to
sary
we were
of
Germany is pushed
secondary position.
We
up from the welter of news
into
saying that all places of amuse¬
ment
and
recreation,
including
clubs and bars, must be closed
beginning Monday at midnight.
We people simply must
sacrifice,
says Jimmy.
You get the im¬
This
grate
." but rather of my wish
to' fi&VeT & clear "idtecfsion ak to
.
story
of
crushing
staffed.
whether
.
Yalta conference, and the tremen¬
dous
where
fortunate delays in getting neces¬
disinte¬
Then, switch, the headlines go
to MacArthur and Nimitz and the
President
we
direct
whether,
bombers pulver¬
our
izing Berlin.
price, rent and enforcement
departments
are
sadly
under¬
Two
■
me
Our local board organization and
admitted
other
items
to
it
entirely—with
possible exception of sugar
job is be¬
ing done.
Resignations are at
a high point and are
increasing,
particularly
among
our
key
people."
poor
seems
our
we
a
It
decide
to
eliminate
fer
gram is
continue
basis
or
in
conscious that
must
a
very bad and getting
Public criticism is in¬
volunteers working on
rationing in the Local
Boards, District, Regional and
National Offices are thoroughly
are
and butter."
is
tional
all meat
remove
we
on
the
we
tion is not easy and material from
reserves still is being used.
Deal¬
ers
to
rationing.
information
"In spite of the very poor dis¬
tribution of meat today, I think
1,675,9001 shipments
1,670,300 tons
it
we
provide reason¬
ably good distribution of meat,
it
situation
improved with better transporta¬
tion
performance, but the situa¬
gated
1945
for
June, 1943, and the smallest Janu¬
ary
figure since <1940,
Average
July 1, 1944.
91.6%;
91.2%;
1944.
lowest
was
make
rationing.
public interest, we should
not either put this program back
back
food
con¬
cember and 161,672 tons less than
to
were
to
creasing. The 7,300 paid em¬
ployees and thousands of addi¬
with
shipments of finished steel by the
United States Steel Corp.
The
January total of 1,569,115 net tons,
was 198,485 tons less than in De¬
ducers'
of
interference
meat
controls
rationed
stores
lines.
of
and
of
in the
problem, for it is
serious.
Maldistribution
worse.
ditions in January is reflected in
on
capacity rating as of
1, 1945, which is somewhat
higher than rated capacity as of
Jan.
of
movement
production by weather
foods
think
truly
materials and finished steel
'
"The shell steel
again
aided
ought
light
maldistribution
from
that
consider the
on
Backlogs
have
either
we
ration
"I
require¬
of am¬
Based
*
page is appropriate:
by
conditions
and
"The combination of
under
show little
change, with extension of delivery
dates in some products and easing
in others.
Better transportation
steel
doubtedly
the fact that many
'plans and projects were cut back-
/inflated
ahead.
order
not be
types
aircraft.
that
the
the program falls
short of achieving the
"The
possible to do a decent job.
X made this very, clear in sev¬
eral parts of my letter. The fol¬
lowing quotation from the first
sight, includ¬
tank
special
said
Washington that
cutbacks following V-E day will
be much smaller than previously
expected, plenty of work appears
all
may
some sources
as
combat
and
in
present method of sched¬
uling steel
large
in
are
stated
in
that
witnessing today would only be
slightly more aggravated if we
proc¬
that
the
insufficient amount both of
processed
time further heavy
same
munition and
raw
complete breakdown
a
ing
ments
of
delivery situation represents one
of the tightest, if not the tightest,
periods since the war began, the
danger of
"At the
commitments
I
far
so
;
Ahead of The Hews
thousand of
volunteers,
purposes of consumer
miration these foods altogether or
to put a sufficient volume of both
signs of tapering and this
trend may continue for some time.
completed,
in Europe
and
I
advance,
war
machinery was first
planned in volume. Demand now
"Extent
present
in
on
we
processed foods under
rationing to
make
the
system
workable, and that supplies were
likely to get worse during 1945.
ordnance
assurances
tight
are
months
Jones
meat and of
have been
programs
foods.
was an
heavy
shows
ex-,
schedules
sheet
continue
when
f
the past week,
orders
Marvin
of the
existing ra¬
tioning programs was being un¬
dermined by the fact that there
buying over the
past 60 days heaviest for any com¬
parable period since early 1943,
of
tons
has
to be almost meaning-
as
with
indus¬
producers delivery
some
•schedules
as
pic¬
war
of
business
sheet
it
several
steel
tens of thousands
new
.
the
"Steel
write
effectiveness
mar¬
follows:
of
the fact
10, saying that I thought
essed
Feb. 19, stated in part as
on
completely mis¬
:
should reconsider the whole
prob¬
lem of rationing meat and
1,750,000 tons
ago.
"Steel" of Cleveland, in its sum¬
steel
industry's capacity to
produce, and the War Production
did
Nov.
beyond
.the
-
I
rate
same
upon^
already over-extended deliveries.
-
if continued at the
even
interpreted.-
Washington
(Continued from first page)
push.
The end is near.
Thirteen
appears to be from
apparent hectic condition in the steel delivery situation,")states "The
-Iron Age" in its issue of today (Feb, 22), which further goes on to
From
The
John
;;
Association's
President
is
C.
Shea, Assistant VicePresident,
Whitney
National
Company
as
Corporate
Trust:
Bank, New Orleans, La.
Other
Auditor, became. N.A.B.A.C.'s first
merly with The
full
time
"National
Cleveland
Trust
Managing Editor of
Auditgram," the Asso¬
ciation's official publication.
Mr.
is
presently
Assistant
Cochard
Secretary andr/ Managing Editor,
having been appointed Assistant
Secretary at the last annual meet¬
ing.
Mr. Cochard will move to
Chicago with the headquarters
office
1,
was
on
1940,
March 1.
"National
Prior to Jan.
Auditgram"
edited for five years by A. L.
McLean (now
deceased), formerly
officers
are:
-Ben N.
First
Vice-President
Jenkins, Assistant Vice-
President, First National
Bank &
Trust Co., Oklahoma
City, Okfa.;
Second"
Vice-President
Arthur
—
R.
Burbett,
Comptroller,
First
National Bank, Baltimore, Md.;
Secretary—Mills
B.
Lane,
Jr.,
First
Vice-President,
Citizens
&
Southern National Bank,
Atlanta,
Ga.; Treasurer—Paul D. Williams,
Comptroller, Corn' Exchange Na¬
tional
Bank
delphia, Pa.
&
Trust
Co., Phila¬
j"
j,i<
riM^rr'^r fttr^^anaCTw)
w-^'/ .wjaww.w«ww« i^w w
v&Mjn**13tntet«Stt
^
".
Weekly Goal and Coke Production Statistics
Interior,
soft coal in
net tons, an
increase of 895,000 tons, or 7.9%, over the preceding week.
Output
in the corresponding week of 1944 amounted to 12,950,000 net tons.
For the calendar year to Feb. 10, 1945, soft coal production totaled
69,840,000 tons, a decrease of 9.9% when compared with the 77,510,000
tons produced in the calendar year to Feb. 12, 1944.
.
According to the U. S. Bureau of Mines, production of Penn¬
sylvania anthracite for the week ended Feb. 10, 1945, was estimated
at 1,117,000 tons, an increase of 275,000 tons (32.7%) over the pre¬
ceding week.
When compared with the output in the corresponding
week of 1944 there was a decrease of 307,000 tons, or 21.6%.
The
calendar year to date amounted to 5,832,000 tons, as against 7,512,000
Administration, U. S. Department of the
The Solid Fuels
report, - states that the total production of
the week ended Feb. 10, 1945, is estimated at 12,185,000
in
its
latest
,
corresponding period in 1944.
tons in the
reported that the
The Bureau also
an
for the
week
the output
37,200 tons less than for
when compared with
increase of 20,600 tons
showed
estimated production of bee¬
week ended Feb. 10, 1946,
States for the
the United
in
coke
hive
ended Feb. 3, 1945, but was
corresponding week of 1944.
the
LIGNITE IN
:
■
PRODUCTION OP BITUMINOUS
STATES
UNITED
ESTIMATED
.
Nalioita! Ferfilizer Association Commodity
Price Index Moves in Harrow Range
weekly wholesale commodity price index, compiled by The
19, declined
The
COAL AND
ago,
in
decline
prices
egg
1944.
The seasonal
than offset the further advance in the
more
prices for potatoes.
Higher quotations for cotton and for wheat and
rye were not enough to offset the declining prices for cattle, lambs
with the result that the farm products group declined mod¬
The textiles group again advanced because of the higher
and eggs,
erately.
There was a small advance in the price for
phosphate rock mined in Tennessee but this was not enough to change
the fertilizer materials index.
All other groups in the index re¬
mained the same.
■'
"... *
prices for raw cotton.
in the
Feb. 10, % tFeb. 3,
Feb. 12,
tFeb. 10,
Feb. 12,
1945
1945 I
1944
44nrin
12,185,000 11,290,000 12,950,000 69,840,000 77,510,000
Daily average
*2,031,000
1,882,000
2,158r000
1,962,000
2,112,000
Average based on six working days, although some coal was mined on Sunday,
Feb. 4, in Coal Act Districts 7. and 8.
tRevised. ^Subject to current adjustment.
week there were also 4 declines and 7 ad¬
second preceding
vances.
*
^
Bituminous coal & lignite—
WEEKLY WHOLESALE COMMODITY PRICE INDEX
Total, including mine fuel__
OF PENNSYLVANIA
ESTIMATED PRODUCTION
i":
Net
(In
.
Tons):
—-—Calendar Year to Date———
Feb. 10,
Feb. 12,
Feb. 13,
-Week Ended—;
'
•
1.
tFeb. 10,
•
•Total incl. coll. fuel
1945
1,117,000
f Commercial produc.
1,072,000
Penn. anthracite-—
Beehive COke
•*
.*'.•»
>*•','•
v
*945
5,832,000
tExcludes
6,357,000
7,212,000
6,039,000
S
(In
'
,
Alabama
—
—
A**----—
Arkansas and Oklahoma
Alaska
Colorado.
——
.
-
-
—
Georgia and North Carolina—
Illinois
—
-
Indiana
.
..
-
'
Town
Missouri..
Kansas and
1945
1945
385,000
•
7,000
106,000
172,000
' *
1,516,000
572,000
56,000
183,000
State—
—
Montana (Litum. &
7,000
112,000
176,000
1,000
1,518,000
550,000
65,000
._
North & South Dakota (lignite!
Ohio
:
——.
Pennsylvania
.
(bituminous)—
Tennessee
Utah.
—
Virginia
:
-
.
tWest Virginia—Southern—
tWest Virginia—Northern
'Wyoming—
lOther Western States
-
35,000
72,000
660,000
2,218,000
2,340,000
153,000
152,000
4,000
5,000
150,000
152,000
395,000
410,000
31,000
2,124,000
757,000
194,000
.'
Washington.........
.
105,000
31,000,
67,000
626,000
(bituminous & lignite)—
Texas
1,080,000
388,000
35,000
3,000 ;
103,000
—
New Mexico;—:
& O.
the B.
District
Panhandle
Oregon.
and Grant,
Rejoice in Liberation of Manila
1944
143.6
139.2
145.3
145.3
144.9
146.1
$385,000.
163.1
163.1
161.8
159.6
numbered
164.6
165.0
164.5
157.4
"the Japanese
peaceful nations" to take warn¬
ing that "their world of treachery,
of
aggression and enslavement can¬
not survive against our world of
The Presi¬
dent's message, made public at
the White House on Feb. 4, fol¬
and
freedom
peace."
lows:
"The
with
people
rejoice
in the liberation
of your
American
me
"After
our
of planning
have quickened at the
long
hearts
years
magnificient strides toward free¬
dom that have been made in the
last
months—at
Leyte,
Mindoro,
Lingayen Gulf and now Manila.
"We are proud of the mighty
blows
struck
by General Mac-
sailors, soldiers and
airmen; and in their comradeshipArthur,
"We will join you
loyal and val¬
iant oeople who in the darkest
days have not ceased to fight for
their independence.
You may be
sure that this pride will strengthen
armed
our
four
159.6
148.4
liabilities.
130.4
130.1
133.4
133.4
133.4
131.4
155.9
155.5
156.0
151.7
622,000 liabilities in January
106.4
106.4
106.4
104.4
six with
154.1
154.1
154.2
152.4
cember.
Commodities-—
..
—
—
and
_
_
Drugs.
Materials
Fertilizers——..
Machinery
__
....
.*•
—
All groups combined
on
1926-1928
base
Feb.
were:
17,
'
1945,
125.4
125.4
125.4
127.7
118.3
118.3
118.3
117.7
119.9
119.9
119.9
119.7
104.8
104.8
104.8
104.2
139.9
137.4
140.1
140.0
109.1;
Feb.
10,
1945,
109.1; and
■:;v-
3:
prices
and bond yield averages are
treachery,
slavement
<_
aggression
cannot
and
survive
in
en¬
the
struggle against our world of free¬
dom and peace."
The
at
message
the
White
made public
House, ' President
was
Roosevelt having at the
absent incident to his
with
Prime
Minister
and Premier Stalin.
time been
conference
Churchill
January than
in
in De¬
A
Baa
R. R.
P. U.
Indus
114.46
105.86
110.34
1.14.08
119.41
than
19_
121.94
114,46
120.02
118.60
114.27
105.86
110.34
114.27
119.20
121.93
114.46
120.02
118.60
114.27
105.86
110.15
114.08
119.41
maining
17AAA.
16——.
121.97
114.46
120.02
118.60
114.27
105.69
110.15
114.08
119.41
15—
121.97
11.4.46
118.60
114.27
110.15
Aa
Corporate by Groups*
114.08
119.41
14
121.70
114.27
120.02
118.40
114.27
105.69
110.15
114.08
119.20
13—
121.64
114.27
120.02
118.40
114.08
105.69
109.97
114.08
119.20
118.40
114.08
105.69
109.97
114.08
119.20
Stock
—.
120.02
105.86
Exchange Closed.
121.59
114.27
119.82
9——.
121.58
114.27
119.82
118.40
114.08
105.69
109.97
114.08
119.20
8—.
121.55
114.27
119.82
118.40
114.08
105.52
109.97
114.08
119.20
7.
121.53
118.20
114.08
114.08
119.61
105.52
109.79
113.89
118.80
121.44
114.08
119.82
118.20
113.89
105.52
109.79
114.08
118.80
121.44
114.08
119.82
118.00
113.89
105.52
109.79
113.89
118.80
118.80
121.37
114.08
119.82
118.20
113.89
105.34
109.60
114.08
2_
121.33
114.08
119.82
118.00
113.89
105.34
109.60
114.08
118.80
l—,
121.11
113.89
119.61
118.00
113.70
105.34
103.42
113.89
118.80
105.17
109.24
113.89
118.60
120.88
113.89
121.09
119.41
118.00
113,70
113.70
119.20
118.00
113.70
105.00
108.88
113.70
118.60
113.70
119.00
118.00
113.50
104.83
109.06
113.70
118.40
113,50
119,00
117.80
113.50
104.66
108.70
113.89
118.20
High 1945—
121.97
114.46
120.02
118.60
114.46
105.86
110.34
114.27
U9.41
120.55
113.50
118.80
117.80
113.31
104.48
108.52
113.70
118.20
119.96
100.49
118.20
116.41
111.07
100.49
104.31
113.50
116.41
117.11
109.06
117.60
115.43
110.15
95.01
99.68
112.93
115.1$
-
1945
19,
1944
20,. 1943
MOODY'S
(Based
1945—
U. S.
Avge.
Dally
Govt.
Corpo-
Bonds
averages
A
Aa
Corporate by Groups*
Baa
3.40
R. R.
3.15
2.65
2.93
2.65
2.72
2.94
3.40
3.15
2.94
17
2.65
2.72
2.94
3.40
3.16
2.95
16
1.69
2.93
2.65
2.72
2,94
3.41
3.16
2.95
15
1.71
14—_
1.71
13
1.72
-
•
;
2.72
2.93
,
2.68
2.93
2.65
2.72
2.94
3.40
3.16
2.95
2.68
2.94
2,65.
2.73
2.94
3.41
3.16
2.95
2.69
2.94
2.65
2.73
2.95
3.41
3.17
2.95
2.69
2.73
2.95
3.41
3.17
2.95
2.69
2.94
2.66
1.72
2.94
2.66
2.73
2.95
3.41
3.17
2.95
2.69
8—
1.72
2.94
2.66
2.73
2.95
3.42
3.17
2.95
2.69
2.71
——
—
5
-
1.72
2.95
2.67
2.74
2.95
3.42
3.18
2.96
1.73
2.95
2.66
2.74
2.96
3.42
3.18
2.95
2.71
2.75
2.96
3.42
3.18
2.96
2.71
1.73
2.95
2.66
1.73
2.95
2.66
2.74
2.96
3.43
3.19
2.95
2.71
1.73
2.95
2.66
2.75
2.96
3.43
3.19
2.95
2.71
1.75
2.96
2.67
2.75
2.97
3.43
3.20
2.96
1.77
2.96
2.68
2.75
19_
1.75
2.97
2.69
2.75
12——
1.74
3———
26—!
Admiral
the
Hart,
Navy
Feb.
appointment from
appeared
February
of
issue
19,
in
page
our
816.)
•
Higgins Class B Director
of Phila. Reserve Bank
The election of Charles A.
2.71
2.97
3.44
3.21
2.96
2.72
2.97
3.45
3.23
2.97
2.72
will
of
the
Moody's Daily
Gommodily Index
2.75
2.98
3.46
3.22
2.97
2.73
2.76
2.98
3.47
3.24
2.96
2.74
2.99
3.48
3.25
2.97
2.74
1945
2.76
Wednesday,
1945-
1.69
2.93
2.65
2.72
2.93
3.40
3.16
2.95
2.68
Thursday,
1.83
3.72
2.74
2.83
3.11
3.72
3.49
2.98
2.83
2.06
3.22
2.77
2.88
3.16
4.07
3.77
3.01
2.88
Feb. 13, 1945_i————*:254.4
Feb. 14—254.4
Tuesday,
Feb.
17—
19
——
Tuesday, Feb. 20
Two
published
16
Saturday, Feb.
Monday,
—„,
254.6
—254.8
254.5
.
254.6
15
Feb.
Feb.
Friday,
complete list of bonds used in computing these indexes was
in the issue of Jan. 14, 1943, page 202.
'
Hercules
Co. of Wilmington, Del.
2.71
computed from average yields on the basis of one "typical" bond
(33/4% coupon, maturing in 25 years) and do not purport to show either the average
level or
the average movement of actual price quotations.
They merely serve to
Illustrate in a more comprehensive way the relative levels and ihe relative movement
at yield averages,.the latter being the true picture of the bond market.
Henry
gins is President of the
Power
2.70
•These prices are
the
fill
late
2.70
2 Years Ago
unexpired
term
L. Cannon,
which ends Dec. 31.1947. Mr. HigHe
2.98
1 Year Ago
Hig-
gins as a Class B director of the
Philadelphia Federal Reserve
Bank was announced on Feb. 9.
2.97
tThe latest
who retired'from
Feb. 14, will serve
November, 1946.
death
loney's
•2.98
1943-
on
Raymond
E. Baldwin
on
8.
(Reference to Mr. Ma-
Gov.
1.80
1944-
Re¬
Senator uhtil
as
1.79
19,
Hart,
C.
Connecticut, filling the post left
vacant by the death on Jan. 12 of
Francis T. Maloney, a Democrat.
5
20,
Thomas
Admiral
publican, was sworn in on Feb. 15
as
United
States Senator
from
2.69
2.68
9——
6
Feb.
';
Stock Exchange Closed.
1.72
As U. S. Senator
From Connecticut
2.68
2.95
2.93
2.93
7
Feb.
Indus
P. U.
1.60
10„—
Low
Aaa
1.69
1.70
Hart Succeeds Maloney
Individual Closing Prices)
Corporate by Ratings*
rate*
had more lia¬
districts
bilities involved.
AVERAGES
BOND YIELD
on
December, while the re¬
in
He received the
19—
20-
12——
High
is con¬
118.60
Corporate by Ratings*
Aaa
120.66
Jan.
When
liabilities
120.02
Corpo-
121.25
v
December.
of
amount
rate*
Average Yields)
5——,
Feb.
in
than
uary
114.46
on
12—
Low
number, while the remaining dis¬
tricts had fewer failure in Jan¬
the
Avge.
Govt.
1—III-
and
Louis, Minneapolis and San Fran¬
cisco Reserve districts had more
Bonds
26-
Jan.
in that effort
Japanese
the
121.87
6——„.
returned to Leyte.
the
country
Reserve
that
found
is
is divided
districts it
Richmond, St.
the
Federal
When
into
from
$67,000 liabilities in De¬
20—
10—
forces, as rap¬
other
enemies of peaceful nations take
warning from. these great events
in your country; their world of
"Let
failures
sidered, it is found that the Phila¬
delphia, New York! and : Kansas
City reserve districts
had less
liabilities
involved
in
January
U. S.
12
and
men
with $41,000
Commercial
service
mse
to eight with $2,December
in
failures
MOODY'S BOND FRICESt
Dally
the
fully as our efforts
against our enemies and our re¬
sponsibilities to other liberated
peoples permit.
With God's help
we
will complete the fulfilment
of the pledge we renewed when
idly
in
10
130.4
Farm
iverages
Feb.
.
—with
our
,in-arms with your
drive
to
failures
Januafy with
liabilities,
as
against
Construction
159.9
(Based
Jap invader from your islands.
our
capital.
determination
our
$254,000
to
130.4
.3
1945—
Feb.
enemies^
and other
liabilities
and
158.8
2 Years Ago
to President
36
from
solvencies decreased to 26 from
Livestock
\
Feb.
Osmena of the Philippines, a message
with the return of the American forces to Manila, President Roose¬
velt declared that "the American people rejoice with me in the lib¬
eration of your capital."
Referring to the "magnificent strides
toward freedom of our forces and those of the Philippines at Leyte,
Mindoro, Lingayen Gulf, and now Manila," the President called upon
Conveying
the
In
1945
1 Year Ago
Americans
against $235,000 in December.
retail trade section in¬
000
$855,000
.3
19
Osr.eisa Says
11 in De¬
against
liabilities were $24,-
and
198.5
Moody's computed bond
*iven in the following table.
"Less than 1,000 tons.
President Roosevelt in iessage to
numbered 84, involving $2,liabilities, compared with
36 in December with $1,076,000
liabilities.
Wholesale
failures
128,000
164.8
Chemicals
12,850,000
C. & O.; Virginian; K. & M.; B. C. & G.; and
counties.
tRest of State, including the
Mineral and Tucker counties.
§Includes Arizona and
Manufacturing failures in Jan¬
uary
142.9
Moody's Bond Prices And Bond Yield Averages
423,000
35,000
2,278,000
1,020,000
209,000
1,000
Kanawha, Mason, and Clay
in
ber.
1945
:
the
were
groups
only groups reporting less liabili¬
ties in January than in Decem¬
cember; the Atlanta and Chicago
Reserve
districts had the same
{Includes operations on the N. & W.;
cn
retail
159.0
Fertilizer
Indexes
19,
19, 1944, 107.0.
168,000
11,680,000.
11,290,000
Total bituminous & lignite—
*
Feb.
..." 4,000
148,000
31,000
2,267,000
715,000
218,000
1,000.
.
*
—
192,000
' 1,000
1,655,000
590,000
50,000
188,000
1,003,000
370,000
40,000
8,000
105,000
39,000
51,000
698,000
3,070,000
204,000
..r
lignite)....
397,000
5,000
102,000
; 380,000
1,013,000
393,000
Maryland—*—-.--—-30,000
Michigan—*.——
2,000
Kentucky—Eastern—
Kentucky—Western
1944
:
considered, the whole¬
is
and
206.4
Metals
100.0
Feb. 5,
,
bilities
162.7
Building Materials.
,3
When the amount of lia¬
cember.
sale
January than
in
failures
203.4
7.1
,
———
Jan. 27,
Feb. 3,
'
Feb.
showing more
in De¬
the only group
was
-
group
162.9
6.1
Net Tonsi
———■—Week Ended
■
1
.
Ago
Ago
Jan. 20,
service
commercial
The
205.8
Textiles
8.2
(The current weekly
__
_*
Miscellaneous
10.8
estimates are based on railroad carloadings and river shipmenti
and are subject to revision on receipt of monthly tonnage reports from district and
State sources or of final annual returns from the operators.)
-
-
Fuels.—
17.3
1.3
-
708,000 in January a year ago.
Grains
Cotton.*
-r- • '"Y- '••••» i.;: •
COAL AND LIGNITE,"
BY STATES
Oils—*-*-**
Products-
Farm
23.0
602.400
PRODUCTION OF BITUMINOUS
ESTIMATED WEEKLY
■■■
and
Fats
Cottonseed Oil
7,512,000
v\ . ••.••• • • ' .*••
156,900
99,100
Food.
25.3
as
142.7
1945
Total Index
Year
Month
Week
Feb. 10.
'
5,598,000
1,367,000
.»• :* . •
Feb. 17,
Group
„
„
985,700
409,000
and dredge coal, and coal shipped by truck from authorized
colliery fuel. {Subject to revision. ^Revised.
washery
"Includes
operations.
1944
1,424,000
" ••
119,700
total.
States
United
Feb. 12,
1945
842,000
.808,000
-v'."
*;,•
§Feb. 3,
Latest Preceding
Week
Bears to the
according
Inc., to¬
$5,883,000
compared with 93 in
December,
involving
$1,804,000
liabilities and 120 involving $1,liabilities,
cember
.
Each Group
ANTHRACITE AND COKE
involved
and
80
taled
Bradstreet,
&
Dun
to
numbered two
Complied by The National Fertilizer Association
/.
V
1935-1939=100*
*
with January 4a year
the same is true. I Business
insolvencies in January,
trend and is at its lowest point since October 7,
vanced; in the preceding week there were 4 declines and 7 advances;
Jan. 1 to Date
December
in
than
liabilities
of
amount
to 140.0 in the week ending February 17, 1945, from
140.1 in the preceding week.
For the past eight weeks the index
has been moving in a very narrow range with a low point in that
period of 139.9 and a high point of 140.1. A month ago the index was
139.9 and a year ago it stood at 137.4, based on the 1935-1939 average
as 100.
The Association's report added:
Two of the composite groups of the index declined during the
week and one advanced.
The food index continued its downward
higher
involved
and,
when
lower in number but
were
in
January
in
failures
Business
compared
fractionally
Jan.]
Business Failures in
National Fertilizer Association and made public on Feb.
During the week 4 price series in the index declined and 5 ad¬
NET TONS
Week Ended
♦
Thursday, February 22, 1945
& FINANCIAL CHRONICLE
THE COMMERCIAL
868
weeks
Month
ago,
ago,
Year
ago,
1943
High,
Low,
Jan.
Jan.
254.0
253.0
——
1944———
19,
April
1944 High,. Jan,
Low,
6—*—
Jan. 20
Feb.
254.7
,
Feb.
1
249.8
2—
240.2
8„
24—;
' 249.4
—255.3
—
252.1
Volume
Bivi!
161
Number 4362
THE COMMERCIAL &
Engineering Boitsfrudian $43,908,000 for
Week—Sains Over Last Week and 1044 Week
/,
,
Civil engineering construction volume for the week in continen¬
tal United States totals
$43,908,000.
construction by military engineers
This volume, not including the
abroad, American contracts out¬
country, and shipbuilding, is 113% above the preceding
week's total, 18% higher than in the corresponding 1944 week, and
72% higher than the previous four-week moving average as reported
to "Engineering News-Record."
The report made public on Feb. 15,
side
the
continued
for
construction
for
the
week
has
for
weeks,
1944
period.
the
.
'
Private Construction
Feb. 15,1945
$37,043,000
2,293,000
34,750,000
$20,591,000
8,569,000
12,022,000
2,451,000
9,571,000
$43,908,000
Public Construction
'
-
__
State and Municipal..—
Federal
;
•
1,219,000
33,531,000
-
3,120,000
40,788,000
1,943,000
38,845,000
,
their
over
respective 1944-week totals are reported in waterworks,
public" buildings, and earthwork and drainage.
Sub¬
the week in each class of construction are:
waterworks,
sewerage, $40,000; bridges, $25,000; industrial buildings,
commercial building and large-scale private housing,
public buildings, $33,662,000; earthwork and drainage,
streets and roads, $650,000; and unclassified construction,
industrial
totals
for
New
capital for construction purposes for the week totals
$1,670,000. It is made up of $1,420,000 in State and municipal bond
sales, and $250,000 in corporate security issues.
The week's new
construction financing brings 1945 volume to $190,693,000, a total 22%
above the $155,824,000 reported for the seven-week 1944
period.
Y
/'
'■'y'v—Y.
■■
■
t
•
that
the
production of
electricity by the electric
industry of the United States for the week
power
light and
PERCENTAGE INCREASE OVER PREVIOUS
Major Geographical Divisions-
Feb. 17
New England
*0.0
Middle Atlantic..-.
*4.0
Feb. 10
:
Feb. 3
1.8
*0.2
4.1
Central Industrial
1.5
1.6
2.2
West Central
6.0
9.2
8.4
Southern States
Rocky Mountain..:
Pacific Coast
4.9
5.6
6.4
*11.5
*10.8
*12.6
*4.5
*2.5
*5.5
——
*
*0.9
—
*0.6
0.3
:
Decrease under similar week in previous
year.
DATA FOR RECENT WEEKS
% Change
Week Ended—
1944
1943
4,354,939
4,396,595
4,413,863
4,482,665
'
1942
1943
over
1932
1929
"
Nov.
4
'ILL
i_n"'
r
lur'i
I'I'i
if
n
^-Vr
im
-
■
Nov. 11
Nov. 18
"
„■ -
Nov. 25
4,450,047
4,513,299
4,368.519
4,403,342
1.3
—
-
Dec.
2
4,524,257
4,560,158
Dec.
9
4,538,012
4,566,905
Dec. 16
4,583.079
4,612,994
Dec. 23
4,616,975
4,295,010
Dec. 30
4,225,814
4,337,287
M
•
—
—
—
Week Ended—
Jan.
1945
1944
104.7
104.7
103.1
+ 0.2
+ 0.2
+
1.7
num
125.8
126.3
121.9
+ 0.9
+ 0.4
+
4.0
88,900,000 lb., against 96,800,000^
lb. in October, WPB
reports. Pro¬
116.4
94.9
94.9
95.1
0
0
106.1
106.1
104.4
0
+ 0.1
+
94.1
94.1
94.0
94.0
93.0
0.1
+
1.2
116.0
115.3
115.3
115.6
+ 0.6
+ 0.3
+
3.2
94.8
94.8
94.8
94.7
93.2
0
+ 0.1
+
1.7
101.6
101.6
101.6
101.4
100.6
0
+ 0.2
+
1.0
Manufactured products
ill
commodities
other
farm products
commodities
farm products and foods
Note—Because
the
comparison
same
week
is available
a
year
for
the
1929
1,726,161
1,718,304
0.9
3,948,749
1,512,158
1,699,250
the
1,519,679
New
Year
1,706,719
holiday,
ij
no
6.
M ^ New Peak ■iflSillll
higher prices
"Seasonally
for fruits and vegetables—particularly
oranges, apples, onions and potatoes—together with fairly substantial
increases in the -ivestock and poultry markets
brought the Bureau
of
Labor Statist!
s'
index
of
commodity prices in primary markets
up 0.2% to a nf t wartime peak," the U. S. Department of Labor
reported on Feb. 1.0, which stated that "the level for the week was
0.2%
above
was
1.7%
ment further
weeks
hig'
r
primary
from
mar
about
ls and
*
13%
104.9% of the 1926 average.
time last year."
The Depart¬
was
same
to
and
seasonally, and
r
Foods—Average prices of farm products at
3%
were
during the week.
reported
in prices
for
Increases
potatoes at
Apples
12%, onions
:
y
-*es more than 36%.
Eggs and lemons declined
'es at New York and white potatoes at Chicago
+
1.0
99.3
99.3
99.3
99.2
98.1
0
+ 0.1
+
1.2
,
Other farm
Livestock
products..
and
the
on
of
basis
tin
1,4
The
%0
pound
per
have
been
com¬
settlement
amended to
material.
terms
,
—
poultry—
Patino
smelter
0.2
ing
o.l
increasing
—0.1
is
encourage
expected
to
fairly large tonnage to the
a
Texas
0.6
y——
Grains
J,
producers to ship better than 18%
FROM
skins...
0.7
Meats
Paint and paint materials———
;$■•:.++Y".-V.
63
of
contained
have been
1945
and
aluminum
was
Tin
ship
Hides
.
to
Details of the agreement to
pur¬
chase
Bolivian
tin
concentrates
pleted.
trade
to
this
accord¬
year,
authorities, thereby
supply of high
our
grade concentrate.
Decreases
.
Other
foods
,
^
.
Straits quality
o.3
520
Zinc Active
—
Bmnd for
tapper assd
Spanish Quicksilver Sold Here
—
developments.
copper
consumers
Quicksilver
unsettled
was
'
production
than
indicated.
make
of
copper
earlier
for
in
estimates
[See "Commercial and
Chronicle"
page
lead
are
of
ply
situation
WPB
ling
has
and
consumption.
been
Feb.
757—Ed.]
of alloyed and
Production
list
of
items
Plate, sheet, and strip ac¬
for 1,636,464 tons of the
total,, and 1,997,409 tons in
the previous year.
52.000 -,v
52.000
Febrmuy
Febiuary
February
February
February
9___
52.000
52.000
52:000
10™
52.000
.
12—_
52.000
Y 52.000
Holiday
+
13—
52.000
52.000
14—_
52.000
52.000
---
'52-OOQ
52.000
•
Chinese,
at
51.1250
99%
or
tin, continued
per pound.
'
\fu. J
[
brisk
vas
lead
restrictions
in
regulations
recent
are
influence
months.
Demand for zinc continued 'to
throughout the week.
Shipments of slab zinc in
au-
Jan¬
92,804- tons, the
record. Included in this
on
ment
the
on
basis
of
$160
per
flask, New York, duty paid. Metal
Traders, " Inc., were named Sales
Later in the week it
agents.
was
reported that Spanish metal sold,
quantity, for March shipment
at
$155, subject to availability of
steamer space.
Metal is expected
to arrive early in April.
This
news
and business
flask.
unsettled
quotations
placed at prices
$165 to $170 per
was
from
ranging
Most producers decided: to
believe that
Spain could arrange
regular shipments under ex¬
isting conditions.
Spanish sup¬
for
plies, however,
large.
The
month
were
The rate of produc¬
tion for
January showed a modest
gain, averaging 2,274 tons daily,
against 2,259 tons daily in Decem¬
ber, the American Zinc Institute
1944
was
With
higher
uary.
market,
agency of European producers, is
offering Spanish metal for-ship¬
March, 1944.
inventory
beginning to exert
the
ment 011 Feb. 8 to the effect that
Mercurio Europeo, the
marketing
for
were
on
The market for quicksilver was
upset last week by an announce¬
2,504 tons for export.
The
previous monthly high in
shipments
was
84,431
tons
in
The
and
Quicksilver
nothing pending developments,
largely because they refused,to
Zinc
reports.
Though demand for lead re¬
fairly active, some sellers
report that buying has not been as
mains
an
April
52.000
do
total
counted
the
tons, against
12,366 tons in the preceding week;
WPB
products in 1944 totaled 2,506,600
tons, against
2,805,013 tons
in
tubes,
on
under
6,712
largest
1944
March
8___
-
to
uary amounted to
1943.
follows:
as
Feb.
February
in
Sales of lead for the last week
amounted
cember amounted to 199,180 tons
against 192,743 tons in November,
according to the Copper Division.
brass-mill
75,-
import
control, by amending Order M-63.
15,
un¬
now
tive
of
stockpile
around
(
alloyed brass-mill products in De¬
Production
to
that
in" control¬
The
reduced
000 tons.
realize
business
means
WPB placed collapsible
storage batteries, and foil
and
deliveries
January
for
March requests
expected to fall be¬
regulating- low both January and February.
greater extent, Consumers, it is felt, now have a
WPB
regula¬ better understanding of the sup¬
Copper
retard
thorities believe.
are
offerings of substantial quanti¬
at lower prices for
shipment
smaller
per
was
their
on
tin continues at
with shipment
pound,
prices nominally
Ait>.
Lead
vye, cotton, cows, sheep and. live poultry.
dvanced 8.7%, sweet potatoes rose
Portland, Orv
over
and
A level advanced 0.9%
.
New York and
at
ago
than at the
+ 0.2
.
sal;,'v.
"Farm Produ"
.
the
of
four
0
—4.1
secondary
November
1.7
99.1
FEB. 3, 1945 TO FEB; 10,
vegetables
Financial
Wholesale Prices for Week Ended Feb. 19
It
and
of
alumi¬
amounted
0.2
Increases.
Fruits
1945,
SttSK
112.4
+
r
99.9
portation difficulties combined to
1,578,817
1,545,459
Jan.
0-
100.0
1,728,203
3,960,242
3,939,708
ended
+ 0.3
100.1
1,717,315
0.3
3,892,796
week
0
100.1
Manpower shortages and trans¬
0.6
contained
ago
113.7
PERCENTAGE CHANGES IN SUBGROUP INDEXES
primary
48,000,000 lb.,
against 43,400,000 lb. in October.
than
follows:
; •-+
percentage
other
of
November
■
than
_
from Spain." The publication fur¬
ther went on to say in part as
4,523,763
4,444,939
.
1,637,683
1,588,967
Feb. 24
2.6
116.7
94.9
106.2
1,860,021
3,974,202
4,511,562
+
116.7
.1.542,000
1.2
4,472,293
0.4
94.9
1,619,265
+
Feb. 17
in
+
106.2
1,414,710
1,588,853
duction
0.6
+ 0.2
116.7
1,554,473
3,976,844
2.0
0
3uilding materials.
Themlcals and allied products
3,779,993
4,531,662
1.2
0.2
+
+
Housefurnishing goods
3,975,873
1932
+
0.1
+ 0.1
103.8
3,655,926
1943
0.1
+
104.0
Semimanufactured articles
in
+
104.3
Haw materials
Production
0
83.5
Miscellaneous commodities
Aluminum
0
97.2
83.9
ties
4,588,214
'
+ 0.1
99.1
99.0
tions.
Jan.20
4,524,134
0.9
83.9
1,840,863
1,733,810
4,532,730
+
99.0
1,806,225
1,736,721
4,538,552
+ 0.2
84.0
1,563,384
1,602,482
4,576,713
+ 0.6
99.1
1,518,922
1,598,201
4,505,269
104.0
117.8
104.2
3,937,524
3,952,587
3
104.7.
117.9
84.0
3.883,534
3,952,479
Feb.
104.4
117.9
104.2
0.6
1.7
Feb. 10
104.3
117.9
lighting materials.
0.8
+
Jan. 27
104.9
118.0
Metals and metal products
?uel and
buying to a
conforming with
1944
over
i
104.7
1,793,584
4,567,959
in
125.7
1,718,002
4,539,083
year,
drop
production.
126.8
1,818,169
4,427,281
last
the
104.9
——A.
1,475,268
4.614,334
the
for
accounts
All commodities
1.510,337
6
reduced ap¬
was
during
2 -12
1,531,584
Jan.13
government
1944
3,766.381
% Change
1942; and 2,512,051 lb. in 1941.
ore-purchasing program of
The
1-13
3,795,361
2.6
5,586,492 lb.
1943; 4,429,130 lb.
1945
1.9
—
contained
2-3
1.4
1.1
—
in
1945
0.8
"
shipments
of vanadium in
2-12
Lead
1,798,164
1944, mine ship¬
ments) amounted to about
3,500,000 lb.,
according to an estimate
by the Bureau of Mines.
Mine
1944
3,761,961
3,775,878
1,520,730
United States in
Feb. 10 , 1945 from—
deliveries established a new high
in the first month of the
year.
(Thousands of Kilo watt.Hours*
Vanadium
Production of vanadium in the
preciably
deliveries turned out to be smaller than
estimated,
attributed solely to manpower
shortages and transporta¬
tion difficulties.
Producers had requests for at least
160,000 tons of
copper for January delivery. Zinc<S>-
1.2
hand for
1-13
but this
Total United States
production,
on
follows: Pro¬
1945
January
*5.4
.
*
as
duction, 901,332 tons; shipments,
837,322 tons; stock at end, 237,520
1945
"E. & M. J. Metal and Mineral
Markets," in its issue of Feb; 15,
states: "Demand for both copper and zinc
continued at top levels
throughout the week, notwithstanding favorable war
9.8
5.1
*11.9
revised
were
tons.
Percentage change to
Hides and leather products
Textile products
Jan.27
2.3
•^2.0
1944
which
V-'
i-Ferrsiss IfefaSs
*1.9
Totals
covering
shipments, and stock
1945
YEAR
*3.7
10,
21,332
1945
——Week Ended-
—
FEB.
237,520
1945
ended Feb.
17,1945,
was
approximately 4,472,293,000 kwh., which compares with 4,511,562,000 kwh. in the corresoonding week a year ago. and 4,505,269,000
kwh. in the week ended Feb. 3, 1945.
The output of the week ended
Feb. 17, 1945, was 0.9 % below that in the same week last year.
Spain would again be
ENDED
215,208
27,546
Commodity Groups—
Besreased 0.9% Below Sante WeekLast Year
mated
WEEK
78,732
1-27
U1
Institute, in its current weekly report, esti¬
PRICES. FOR
end_
orders
22
'<
92,804
2r3
Farm products—
?oods
Elestric Output for Week Ended Feb. 17,1045
78,710
2-10
_
The Edison Electric
from
"
,
70,035
90,300
"Revised.
were
1
'''Dec.
246,217
70,492
2,504
at
Unfilled
(1926=100)
and
$1,351,000;
$1,891,000;
$1,098,000;
$1,766,000;
$3,425,000.
metal
Stock
the
In the
classified construction groups, gains over last week are
in waterworks, public buildings, and earthwork and drainage. Gains
that
sum¬
237,520
'
'
rumored
WHOLESALE
beginninsr»__
Export
Commodities—Industrial
was
at
Domestic
nearly 1%
Note—During the period of rapid changes caused by price con¬
trols, materials allocation, and rationing, the Bureau of Labor Sta¬
tistics will attempt promptly to report
changing prices. The indexes
must be considered as
preliminary and subject to such adjustment
and revisions as required by later and more
complete reports.
The following tables show: (1) index numbers
for the
principal
groups of commodities for the past three weeks, for Jan.
13, 1945
and Feb. 12, 1944, and the
percentage changes from a week ago, a
month ago, and a year ago, and
(2) percentage changes in subgroup
indexes from Feb. 3, 1945 to Feb. 10, 1945:
engineering construction volumes for the 1944 week, last
week, and the current week are:
Feb. 8,1945
was
Stock
are
Jan.
Shipments;
,
'Civil
Feb. 17,1944
and
January slab
follows:
as
Production
Turpentine advanced 1.2% and minor
reported in prices for Western pine lumber and
maple floorings.
Slightly higher prices were also reported for cer¬
tain soap products."
The Labor Department included the
following notation in its
report:
$21,421,000, is 71% higher than in the seven-week 1944 period.
S.: Construction2-
last month
offered in the United States.
fluctuations
but public construction, $129,954,000, is down 36% due to the
43% decline in Federal construction.
State and municipal volume,
Total U.
when it
cury
ago,
.
year ago.
of
year.
tons,
marized
commodity markets were
relatively steady during the week ended Feb. 10.
Quotations for
shearlings rose 2.7%. A further decline occurred in prices for mer¬
tops last week by 239%, and
decrease of 28% from the $252,235,000 reported
Private work, $51,454,000, is 2% above a year
a
a
since the middle
"Industrial
a
seven
0.2%
higher than
The current week's construction brings 1945 volume to $181,408,000
.
risen
(revised) at the end of No¬
The December and
zinc statistics, in
by the seasonal advance in prices ~for fresh fruits and
vegetables, together with higher quotations for dressed
poultry at
New York and for rye
flour, average prices for foods in primary
markets rose 0.6% during the week.
Aside from the declines for
eggs, lemons, apples at New York and white potatoes at
Chicago,
there were no important decreases in food
prices.
The food index
Private work is down 64% com¬
week ago, but is 36% higher than a year ago.
Federal
construction is 306 and 16% higher, respectively, than in the preced¬
ing week and the 1944 week, and is primarily responsible for the
public gain.
for the
tons
vember last
last year.
"Led
17% above the week last year.
pared with
869
nearly 2%.
Since the middle of January, average prices
products have advanced 0.4% to a level 4% higher than
farm
at this time
follows:
as
Public
is
dropped
FINANCIAL CHRONICLE
The daily
2,463 tons.
average
for
215,208 tons
to-be
Mines
statistics
furnished
Consumption
another
in vthat
was reported as
unchanged
3,900 flasks.
Some observers
regard that figure as entirely too
at
low.
sulted
as
An
increase
from
in
stocks
importations
withdrawals
from
as
the
re¬
well
stock¬
pile.
substantially
production,
stocks
reduced 22,312
known
V
of
December
surprise.
Silver
shipments
than
Bureau
are
tons, totaling
at the end of Jan¬
The peak in stocks in the
Institute's compilation was 246,217
The
London
market
last
week
unchanged at 25V2d.
The
New_ York Official for foreign
silver
was
unchanged at 44%0,
was
with domestic at 7O%0.
Thursday, February 22, 1945
CHRONICLE
THE COMMERCIAL 8c FINANCIAL
870
live
^Trading
Daily Average Crude Gil Production for Week
New York Exchanges
on
The Securities and Exchange
Commission made public
Feb. 14
New
that the daily aver¬
age gross
crude oil production for the week ended Feb.
4,728,800
barrels,
and
week,
preceding
the corresponding week
was 28,000 barrels below
the Petroleum Adminis¬
gain of 329,650 barrels over
a
The current figure, however,
of last year.
daily average figure recommended by
the
4,728,250 barrels.
10, 1945, averaged
weeks ended Feb.
the four
Daily production
of February, 1945.
tration for War for the month
for
10, 1945, was
increase of 5,400 barrels over the
an
the Institute follow:
Further details as reported by
..
companies, indicate that the
industry as a whole ran to stills on a Bureau of Mines basis approxi¬
mately 4,770,000 barrels of crude oil daily arid produced 14,996,000
barrels of gasoline; 1,563,000 barrels of kerosine; 4,565,000 barrels
of distillate fuel, and 9,237,000 barrels of residual fuel oil during
the week ended Feb. 10, 1945; and had in storage at the end of that
received
Reports
gasoline; 44,573,000 barrels
and other gasoline; 7,896,000 barrels of kerosine; 30,544,of distillate fuel, and 48,845,000 barrels of residual fuel
of
volume
of military
barrels
oil,
'
■
AVERAGE
DAILY
figures*
V•/•'!.r/H:';
Nebraska
Ended
Begin.
Feb. 10,
Previous
Feb. 10,
Feb. 12,
Feb. 1
1945
Week
1945
1944
dations
-
-
_
Ended
February
Oklahoma
Kansas
from
ables
269,400
1,000
____
;?■;-r-.v.•
■
rotal
Round-Lot Stock
Sales
v ••
the
on
Transactions
for
-"J
.
New
North
West
Texas
j._
Central Texas
Texas
—i
Coastal
Transactions
the
and Specialists:
of
Accounts
Odd-Lot
4,600
281,750
950.
1,100
88,700
88,700
102,000
143,150
143,150
139,950
478,600
478,600
362,000
144,050
110,250
391.050
390,600
342,350
342,350
288,250
Texas
552,600
552,600
516,600
8,700
—
'8,700
,
—
Louisiana
68,250
68,400
77,200
289,200
283,100
50
<r—•
■
289,200.
:':vv
—
Louisiana
—
—
—
-
Mississippi
46,800
300
250
Alabama
_
—
—
50
81,550
78,800
47,850
43,950
50
250
—
,
Florida
Indiana
50
■_
50
205,750
+ 11,250
199,900
203,850
12,000
13,050
150
12,850
14,350
__
Eastern—
Kentucky
__
68,200
59,250
+
1,100
59,650
69,450
32.000
30,300
+
100
30,100
22,900
47,000
Wyoming
:
100,000
99,550
Montana
;
23,000
19,650
Colorado
45,300
——
53,400
-
.98,050
98,500
20,000
20,950
9,600
8,450
103,150
113,050
200
+
103,150
105,000
105,000
—
4,700
+
9,550
9,500
-
New Mexico
—-1,550
45,256
.
the
of
curbing of the mounting
and
199,186
2.95
224,235
—
^TotalTotal purchases—
tQther sales—
1,029,065
—
—
tfotal Round-Lot Stock
Sales
the
on
15.12
1,143,245
for
Account
J—
Carey N. J. Bank
Stock
(Shares)
Commissioner
(Republi¬
Feb. 14 as
New
Jersey Commissioner
of
Banking and Insurance to serve
for a 3-year term;, his appoint¬
2,094,510
-
Account
of
Members:
—
tOther sales,;
166,060
9,805
,
160.000
—
011
posi,
the
succeed
to
Eugene E. Agger of New Bruns¬
wick, was confirmed by the State
Senate on Feb. 12.
In entering,
they are registered—
Total purchases—,„
Short sales——,.
in
sworn
to
ment
Transactions of specialists in stocks in which
1.
was
Carey
B.
Lawrence
can)
.
—
for
and
27, 1945
Total sales,—
Transaction
Exchange
Total for week
—U——21,935
2,072,575
A. Total Round-tot Sales:
B. Round-Lot
Curb
Members*
of
ENDED JAN.
WEEK
,
York
New
and represents the1
generation of his family iiv
Michigan banking.
third
114,180
:
_
the
of
troit; banker
1,073,360
—
,
a
Branch
25,050
.k——
——
recently
the Detroit
Federal Reserve
Bank of Chicago for a two-year
term. Mr. Kantor has spent most
of his business lifetime as a De¬
elected
207,630
Short sales——-———.
was
director of
of
Bank of
National
Mich.,
Detroit,
3.96'
floor-
Total purchases
.
Charles A. Kanter, President
295,110
Total sales——-.,.
Other transactions initiated off the
3.
tOther sales,—,—,—
ix
Michigan
...
financing
Manufacturers
276,210
——
Short sales
(Not incl. 111., Ind.,
Ky.)
price
and
stabilization
Of Chicago Reserve
18,900
tOther sales
—
Illinois
planning for
and
peace,
"Wage
285,100
—-4
,
Transactions
198,000
■
to
Of Detroit Bratich
floor-
*
53,000
1,350
+
81,600
80,317
80,000
from
"Reconversion of industry
war
full-time employment.
8.21
623,900
_
.
Total sales———————————
Arkansas
structure.
Kanter Elected Director
70,230
,
Total purchases—
Short sales
360,300
357,600
50
—
357,450
396,800
360,000
i_
Odd-Lot
553,670
Short sales
Total
war-weighted
of the
"Revision
tax
"Strengthening of labor laws,
particularly ; those dealing, with
the War Labor Board.
I'And possibly the drafting of a
'lasting peace' plan."
580,630
Short sales—
Total sales
Louisiana
North
curity program.
national debt.
7,331,930
tOther sales—
1,909,G50
2,140,500
peacetime conscription:
"Broadening of the Social Se¬
tion to
war
specialists in stocks in which
tOther sales—
—
2,141,450
2,140,000 $2,143,749
Seventy-eighth 'war Congresses.^
"Ranking high .on the program'
of legislation awaiting considera¬
tion are these subjects, in addi¬
Controls.
Members,
of
Account
for
for
Dealers
by veter-'
Seventy-seventh and
the
of
aris
Stock
7,124,57o
_
Except
■
Coastal
!
—,
__
a
for the next two years
:>•
•
be
"Continued
Total purchases
263,500
144,050
—
Total Texas
p.r.-
,
Round-Lot
(Shares)
207,360
—
Total sales
392,000
Texas
.l-'y (•••*>
and
only will the Severity-'
new Congress.
More
than 80% of the 435 House and
96 Senate seats will be occupied
"In name
ninth
they are registered—'
327,200
'
East
Southwest
in these
Total for week
tOther sales-
1. Transactions of
362,950
$950
—
East
27, continuing
Commis¬
sociated Press stated:
27, 1945
Short sales—
Round-Lot
v- k-*-.
Exchange
A. Total Round-Lot Sales:
.
250
—
$252,800
Texas
Texas
Stock
Members*
of
WEEK ENDED JAN.
,
'
v.«••r
York
Account
Other transactions initiated on the
Panhandle
all
'
$363,550
360,500
274,000
—
,
of
Trading on the Stock Exchange for the account of members
(except odd-lot dealers) during the week ended. Jan. 27 (in roundlot transactions) totaled 2,102,428 shares, which amount was 15.12%
of the total transactions on the Exchange of 7,331,930 shares.
This
compares with member trading during the week ended Jan. 20 of
2,994,259 shares, or 14.83% of the total trading of 10,095,210 shares.
On the New York Curb Exchange, member trading during the week
ended Jan. 27 amounted to 615,980 shares, or 14.70% of the total
volume on that exchange of 2,094,510 shares. During the Jan. 20 week
trading for the account of Curb'members of 725,845 shares was 13.90%
of total trading of 2,544,895 shares.
B.
Week
Ended
Recommen
360,000
BARRELS)
4 Weeks
Change
account
.
,
,
Total sales
Week
Allow¬
the
series of current figures being published weekly by the
sion.
Short sales are shown separately 'from other sales
Actual Production
♦State
■
♦P. A. W.
for
a
'
'
PRODUCTION (FIGURES IN
OIL
CRUDE
r; Vv";.'
;
'
.
transactions
stock
round-lot
members of these exchanges in the week ended Jan.
47,882,000 barrels of civilian grade
week
000
refining
from
the
30 the As¬
of Dec.
date
Under
on
showing the volume of total round-lot stock sales on the
York Stock Exchange and the New York Curb Exchange and
figures
The American Petroleum Institute estimates
civil¬
this earth—yea, even
on
ization." vA
his new duities Mr. Carey
as
President of the
Plainfield National Bank, of Plainupon
Total East of Calif.
California
3,863,000
§893,800
893,800
_
3,830,400
898,400
+
700
+
4,700
3,833,800
894,450
4,728,800
+
5,400
4,728,250
3,607,650
Total sales,,———.
4,756,800
transactions initiated
Other
2.
-
Total United States
169,895
791,500
.
on
the
floor-
74,425
Total purchases
Short sales—...
4,399,150
recommendations
and
allowables,
state
shown
as
above,
represent
productive of crude oil only, and do not include amounts of condensate and
derivatives to be produced.
;
tThis
natural
Total sales
the
is
net basic
for
6
shutdowns
and
allowable
of Feb.
as
1
calculated on a
28-day "basis
Short sales
and
STILLS;
UNFINISHED
PRODUCTION
RESIDUAL
FUEL
OIL,
■:'•••"••
this
FINISHED
AND
Short sales
17,605
tOther sales
314,375
10, 1945
of
Mines
basis
Pro¬
Total purchases.
67,665
Total sales
tStocks
Gas Oil
of Resi¬
Mili-
ity Re- Aver- % Opporting
age
erated
Inc. Nat.
& Dist.
dual
tary and
vilian
District—
East Coast
Blended
Fuel Oil
Fuel oil
Other
Grade
" 741
1,927
6,173
4,983
6,675
6,126
100.0
.
101.6
Ci->
District No. 1—_
83.9
96
District No. 2„__
87.2
60"
Ind., 111., Ky.—
Okia., Kans., Mo
—
85.2
756
80.2
377
73.8
288
327
127.7
178
156
92.8
,
90.2
.
■
■■
245
1,321
1,387
226
593
987
2,822
4,264
2,495
6,372
15,374
1,378
1,786
1,209
2,161
6,835
66.9
235
84.5
927
366
667
1,131
1,758
Texas Gulf Coast——
90.5
1,190
102.1
3,624
5,815
8,256
10,329
5,257
Louisiana Gulf Coast-
95.5
271
112.0
1,029
1,460
1,428
2,816
2,194
La. & Arkansas-
68.0
77
74.0
218
805
255
937
2,026
17.0
11
84.6
36
15
28
15
67
Inland Texas
Rocky Mountain—
District No. 3—
District No. 4
California
————
Total U.S.B. of M.
basis Feb.
69.5
100
69.9
379
326
582
578
1,345
'89.9
847
103.7
2,190
9,051
28,471
11,645
4,526
•
87.5
10, 1945-
4,770
97.0
14,996
30,544
48,845
*44,573
47,382
4,662
95.0
14,535
32,370
50,451
43,374
47,6G0
Total U. S. B. of M.
basis Feb.
3, 1945—
.
87.2
'"Includes
currently
and
tin
their
-.he Exchange
1944-
4,276
13,044
35,121
52,419
36,212.
45,666
aviation,
military, solvents and naphthas, and gasoline blending stocks
indeterminate as to ultimate use, and 11,934,000 barrels of unfinished
gasoline this week, compared with 11,576,000 barrels a year ago.
fStocks at refineries
bulk terminals, in transit and in pipe lines.
§Not including 1,563,000 barrels of
at
4,565,000 barrels of gas oil and distillate fuel oil and 9,237 000 barrels of
residual fuel oil produced during the week ended Feb. 10, 1945, which compares with
1,325,000 barrels, 4,559,000 barrels and 9,377,000 barrels, respectively, in the preceding
week and 1,585,000 barrels, 4,121,000 barrels and 8,894,000 barrels, respectively, in
the week ended Feb. 12, 1944.
kerosine,
Note—Stocks of kerosine at Feb. 10.
8,796,000 barrels a week earlier
1945, amounted to 7,896,000 barrels,
and 7,642,000 barrels a year before.
as
against
includes
percentages the total
the total round-lot volume
only
are
included
with
"other
of
on
members'
the
purchases
filed with the Commis¬
odd-lot dealers and
specialists.
,v
■_
"V
reports
regular and associate Exchange members,
these
volume includes
tRound-lot short sales which
rules
all
their
partners. Including special partners.
calculating
mmpared with twice
and
sales
is
sion
STOCK
Exchange for the reason that
AND
exempted from restriction by the Commission's
sales."
"short exempt"
TRANSACTIONS FOR THE ODDOF ODD-LOT DEALERS
SPECIALISTS ON THE N. Y.
k
STOCK EXCHANGE
,V l
LOT ACCOUNT
sales.
are
by the
Ended Feb. 3,
Week
are included
with "other sales."
1945
Total •
for Week
Odd-Lot Sales by Dealers
(Customers' purchases)
Number of orders————
Tne 79th Congress convened on Jan. 3, both
Dollar value
the
House's brief calendar
for opening day
was
the routine
re-election of Sam Rayburn
Tex.)
to
Speaker.
his
The
fourth
(D.-
term
Democrats
as
were
ready to speed their organization
by choosing today their members
of the biggest
standing commit¬
tees—
particularly those dealing
with
the
spending*
war
and
Government
over
Representative Joseph W.
Martin, Jr. (R.-Mass.), who auto¬
matically resumed his role as
leader of the Republican minor¬
(Customers' sales)
Number of Orders:
Customers'
'•"Customers'
Customers'
he told the House, 'our
thoughts
must
run
to
awful
things. Today we're being tested
whether
free
government will
these/
sales—;—
other sales——
275
28,353
sales.:—;
28,628
short
total
Number of Shares:
short
"Customers'
other
sales..
Customers'
total
sales
Dollar value
—
—
8,796
sales—
Customers'
Round-Lot Sales by
785,839
—
794,635
$27,163,418
—
Dealers-
Number of Shares:
Short
ity.
"Accepting his fourth term as
Speaker, Mr. Rayburn appealed
for national unity. 'In times like
23,094:
825,748
$32,320,578
—
.
Odd-Lot Purchases by Dealers—
Houses, it is stated,
promptly at noon. With a bust of former Secre¬
tary of State Cordell Hull standing on the rostrum, the Senate, said
the Associated Press, began its ceremonies with the presentation of
election credentials for Homer Capehart, Indiana Republican; For¬
rest Donnell, Missouri Republican, who was not present, and William
J. Fulbright, Arkansas
Democrat.^
The Associated Press advices, as '
"Mr.
Rayburn was re-elected
reported in the New York "Sun," by a roll-call vote of 224 to 168
opening its sessions
said:
V
shares_——_
of
Number
'
"On
U. S. Bur. of Mines
basis Feb. 12,
tinuing a series of current figures
being published by the Commis¬
sion. The figures are based upon
(50,661
—
"members"
§Sales marked
Appalachian—
No.
term
Exchange, con¬
Stock
New York
67,665
firms
Gasoline Stocks
of
at Ref.
Daily
14.70
0
SCustomers' other sales
tStocks
duction
Capac-
331,980
..
...
*The
to Stills
—
—
§Gasoline
% Daily Crude Runs
.Total sales
C. Odd-Lot Transactions for Account of SpecialistsCustomers' short sales——,
v
include reported totals plus an
amounts and are therefore on a
Bureau
v
Refining
3.51
284,000
42 gallons each)
section
of unreported
estimate
;V.'
GASOLINE; STOCKS OF
AND DISTILLATE FUEL
WEEK ENDED jPEB.
in
Figures
OIL
of barrels of
thousands
(Figures in
OF
GAS
GASOLINE,
103,610
Exchange
public
on
Feb. 14 a summary for the week
ended Feb. 3 of complete figures
showing the daily volume of stock
transactions for odd-lot account
of all odd-lot dealers and special¬
ists who handled odd lots on the
made
Commission
100,910
purchases.
and
Securities
The
2,700
___
Total sales,,
Total
'*
TO
RUNS
AND
;
Committee of California Oil Producers.
^Recommendation of Conservation
CRUDE
-.
....
Total-
4.
only being
needed to
total equivalent to 6 days shutdown time during the calendar month.
operate leases, a
:
tOther sales
for
days, no definite dates during the month being specified; operators
to shut down as best suits their operating schedules or labor
required
3.17
43,515
Total purchases
the
entirely
exemptions
58,475
.
Other transactions initiated off the floor-
3.
ended 7:00 a.m. Feb. 8, 1945.
entire month.
With the exception of
.several fields which were exempted
and of certain other fields for which
shutdowns were ordered for from 2 to 14 days, the entire state was ordered shut down
includes
53,375
the
gas
$ Oklahoma, Kansas, Nebraska figures are for week
field, N. J.
5,100"
iL
tOther sales——.,,,
*P.A.W.
resigned
8.02
sales
tOther
sales
Total
sales
1
—
;i_—
50
190,720-
;
—
'
190,770
Round-Lot Purchases by Dealers:
•
Number
•Sales
of
shares
252,500
marked
ported with
"short exempt"
"other sales."
are
re¬
tSales to offset customers' odd-lot orders.,
and sales to liquidate a long position which
is
less than
a
"other sales."
round lot
are
reported with
Volume 161
Number 4362
THE COMMERCIAL &
Revenue Freight Car Loadings During Week
:
Ended Feb. 10,1945 Increased IS,T56 Cars
'
Loading of
freight for the week ended Feb.
revenue
Southern District—
Feb, 16..
This
was
decrease below the corresponding week of
a
1944 of 37,745
cars, or 4.8%, and a
in 1943 of 9,835 cars, or 1.3%.
\ /
Loading of
vv
.16,756 cars,
~i\
decrease below the
'
" '
Atlanta, Birmingham & Coast
freight for the
revenue
week
same
353
below
cars
the
preceding
week, and
in 1944.
below the corresponding week
a-decrease
of
2,266
decrease of
2,607
below the corresponding week in 1944.
cars
Coal
loading amounted to 176,013 cars, an increase of 18,449 cars
above the preceding week but a decrease of
9,946 cars below the
corresponding week in 1944.
\
Grain and grain products loading totaled 41,347
cars, a decrease
'
.week
27,715
and
cars,
•
loading for the week of Feb. 10
of 1,310 cars below the preceding
decrease
a
decrease
a
of 1944.
of
9,924
below
cars
the
corresponding week
-
,
,
Livestock loading amounted to 13,571 cars, a decrease of 460 cars
the preceding week and a decrease of 1,242 cars below the
below
corresponding week in 1944.
of
livestock
of 613
cars
for
the
week
below .the
In the Western Districts alone, loading
Feb. 10 totaled 9,839 cars, a decrease
of
preceding week and
a
decrease of 968
cars
below the corresponding week in 1944.
Forest products loading totaled 38,902
cars, a; decrease of 4,547
below the preceding week and a decrease of 5,792 cars below
the corresponding week in 1944. /
;cars
'
;*
Coke
loading amounted to 14,738 cars, an increase of 483 cars
preceding week but a decrease of 237 cars below the
corresponding week in 1944.
the
All districts reported decreases compared with the
corresponding
Week in 1944 except the Pocahontas, Southern and Central Western,
ill districts " reported increases, compared with 1943 except the
Eastern, Allegheny and Southwestern.
1945
.
Week
of
February
3
Week -of
February
10
1944
3,001.544
-
.
—
-
Total
———
11,581
5,951
5,207
1,846
3,951
277
320
110
115
2,957
3,385
112
!
39
.V 708
921
1,486
2,012
•
3,243
130
147
2,504
770
906
.
4,592
4,104
3,724
4,157
4,460
28,727
28,331
18,266
18,213
27,087
25,410
25,123
12,684
11,977
219
173
167
925
954
323
364
214
579
645
3,354
5,289
4,942
1,204
1.537
1,834
346
1,455
1,878
381
10,774
11,944
Macon, Dublin & Savannah.
Mississippi Central
Nashville, Chattanooga & St. L
; •
27,239
—
:
3,482
3,163
Norfolk Southern
901
1,127
Piedmont Northern
536
383
Richmond, Fred. & Potomac
445
Seaboard Air Line
.
402
9,814
10,875
10,796
9.538
9,905
23,857
22,112
22,021
27,479
26,114
Tennessee Central
733
648
505
784
1,091
Winston-Salem Southbound
153
133
111
1,565
1,072
Southern
System
Total
125,134
123,881
124,667
129,781
129,064
Chicago & North Western
15,116
Chicago Great Western
Chicago, Milw., St. P. & Pac.
Chicago, St. Paul, Minn. & Omaha
Duluth, Missabe & Iron Range
Duluth, South Shore &
Green
3,514
19,487
3,310
3,772
3,646
4,072
4,076
1,361
1,512
1,241
314
279
762
811
543
673
635
9,230
8,570
9,101
12,524
11,292
336
443
415
85
120
10,343
11,755
9,575
5,862
5,304
'
_
484
_
Ishpeming-
-.
_
Spokane, Portland & Seattle.
__
Atch., Top. & Santa Fe System
_
..
Denver & Rio Grande Western-
Missouri-Illinois
805,714
755,514
Nevada Northern
793,181
765,271
North Western Pacific
_
4,837
4,444
3,530
3,774
10,378
8,353
6,034
5,471
137
3,387
2,746
69,851
66,084
22,951
21,501
20,571
13,784
13,174
Utah
_
3,031
4,590
481
537
49
71
20,121
20,559
17,526
12,300
10,894
3,136
2,871
861
817
12,107
11,670
2,767
11,845
13,825
12,771
2,814
2,761
2,300
4,108
6,109
693
785
748
2,087
2,177
3,534
3,705
6,478
5,324
726
927
909
20
8
951
787
1,007
1,453
2,269
1,94.9
1,753
FREIGHT
LOADED
AND
(NUMBER OF CARS J
RECEIVED FROM
2,126
WEEK ENDED FEB.
Total Revenue
-
Received from
Freight Loaded
Connections
'
Eastern District—
1945
Ann Arbor.————.
•
fcangor & Aroostook—.;
Boston & Maine...—,
--—--——-
Chicago, Indianapolis & Louisville
Central Indiana..,—....
i
Central Vermont.._———...
.
Delaware & Hudson——
.
Detroit & Mackinac—
Detroit, Toledo & Ironton...
Detroit & Toledo Shore Line
,V
Lehigh Valley——
—
Monongahela
■
-——
New York Central l ines
5,409
6,414
1,312
1,422
31
23
38
1,005
975
_
New York, Chicago & St. Louis
1,370
;
W 1,718
12,823
10,188
123
ill
Wichita Falls & Southern."
1,624
1,993
1,808
2,414
1,817
Weatherford M. W. & N. W
300
292
3,517
3,717
12,797
12,054
15,989
20,33''
3,754
3,867,
9,558
9,696
193
184
4,194
3,111
1,941
1,966
1,433
1,476
8,305
11,212
15.072
2,373
2,457
4,028
4,110
4,441
6,526
6.451
268
304
2,051
2,471
2,624
17
43,495
51,141
57,00?
9,478
17,418
18,415
1,018
2,178
2,640
45,446
.
"*
1,218
7,189
15,306
500
448
2,281
2,533
7,374
5,817
8,005
—-
4,889
8,984
8,161
762v
.
..
♦"
.'
'
"••
•
4,261
♦
950
735
8
,29
358
360
V 242
252
1,003
1.143
798
2,938
2,683
296
804
1,032
5,044
-~.~r-r-.~--— v
4,559
17,245
'
268
Wheeling & Lake Erie..
;
■;]
6,317
.
338
?•..;
9,567
34L;
*
136,539
.
6,021
5,799
13,366
12,567
4,887
4,942
4,828
4,843
153,590
151,240
222,484
239,116
Texas & New Orleans
ended
•
Bessemer & Lake Erie
Buffalo Creek &
Gauley
719
650
780
1,769
1,321
36.179
43.353
38,898
30,920
28,402
2,420
3,181
t
1,653
A
Jan;. 27, 1945
608
3
11
1,961
4,466
2,515
113,315
100,831
96,207
683
301
498
6,651
2,442
2,578
3,414
3,605
■
122,018
The
(latest
1,189
2,592
3,208
3,934
2,928
2,717
322
319
1,219
1,233
807
654
461
437
141
551
451
•y
115
215
7,001
5,395
6,147
4,959
4,910
17,293
16,745
16,723
18,760
21,358
53
116
113
361
340
tlncluded
1,580
of
this
t
November
4
10
November
11
November
18__
338
589
488
46
T
November
25
197
223
252
7
14
161
1,029
159
98
27
58
1.240
948
3,652
3,745
1,606
70,899
1,631
1,552
2,201
2,696
77,600
—
——
—
Long Island...
Penn-Reading Seashore Lines
Pennsylvania System—.
Reading Co..
J3.23*
(Pittsburgh)
Maryland
Total
14,796
74,106
62,378
66,174
14,536
29,150
31,571
18,099
20,113
20,955
4,125
4,515
3,618
4,608
3,958
15,188
14,930
156,164
176,802
168,844"
"169,926"
"177,407
Pistrfet—
Chesapeake <fe Ohio
f~
Norfolk & Western
—---
(
'
31,2*2
?Q,8r-:i
28,150
13,584
23,769
22,753
22,651
11,256
8,246
5,177
4,886
5,114
2,300
2,299
60,238
57,523
55,915
27,140
22,707
12,162
C.
Bank
Bank,
Wilson,
&
Company,
Amboy, N. J., and L. C.
Wright, President, Security Bank,
Blackwell, Okla.
Perth
In
addition, the conference
Association
and Vice Chair¬
of Board of the National
City
of
New
man
Bank
York;
Rathje,
Bankers
Frank
G.
of the Committee
Federal Leg¬
on
islation, and President of the Se¬
Savings and Commercial
Bank, Washington, D. C.; C. W.
7,212
13,452
13,348
5,492
5,680
5,465
3,872
8,478
8,256
71
85
42
58
Bailey, Chairman of
19
27
26
44
tural
74,162
Ohio
69,607
RR.
JFigure
73,784
for
week
C.
the
Chicago City Bank
Company, Chicago, 111.;
Addison, Jr., Chairman
and Trust
10,227
&
of
Association
and Chairman of Board and Pres¬
of the
ident
7,226
72,730
Frank
Vice-President
American
8,793
/
was
attended by W. Randolph
Burgess,
President of the American Bank¬
9,140
Baltimore
Adams,
President,
Trust
3,634
curity
the
Agricul¬
Commission, and President
the
First
National
Bank,
Clarksville, Tenn.; A. L. M. Wig¬
gins, former Chairman
mittee
revised.
of the Com¬
Federal Legislation, im¬
on
mediate
Association
Received
22,318
Ligonier Valley
First
State
J.
8,199
in
Na¬
Company,
Charlottesville, Va.; W. L. Smith,
Vice-President and cashier, First
National
Bank,
Lake
Geneva,
Wis.; N. V. Torgerson, President,
2,961
t
officer,
Trust
9,218
represent
REPORTS—ORDERS, PRODUCTION,
Period
2
Cumberland & Pennsylvania
trust
&
3,448
available).
1944—Week Ended
18,808
1
1,017
2,946
32
Orders
V
316
Total.
357
4,920
past
President
of
the
of the Bank
Hartsville, Hartsville, S. CM
Harold
Stonier, executive
ger of the
83%
of
thy
total
figure which indi¬
cates the activity of the mill based' on
the time operated.
These
figures are advanced to equal 100%, so that
they represent the total
industry.
'
6,617
Virginian
4,004
252
5,466
program includes a statement each week from each
member of the orders and
production, and also a
2,009
Pocahontas
1,930
288
4,983
industry, and its
t
,
7,832
"
figure,
members
1,710
Union
6,349
\
and
Bank
and
mana¬
Association, New York.
-
6,949
Western
275
-„5Ve give Herewith latest
figures received by us from the National
Paperboard Association, Chicago, 111., in relation to
activity in the
paperboard industry.
1,580
Cornwall.
244
Weekly Statistics of Paperboard Industry
6.077
!
tional
A.B.A., and President
Central R. R. of New Jersey
.
President
15,721
>
13,565
677
1,459
89
Note—Previous year's figures
Cambria & Indiana
.
Vice-President, Citizens Na^
Bank, Decatur, 111.; R. P.
Holding, President, First-Citizens
Bank & Trust
Company, Smithfield, N. C.; Edgar McBride, Pres¬
ident, .Commercial
Bank,
Blue
Hill, Neb.; C. T. O'Neill, Vicetional
15,935
15,220
591
1,706
71,704
week's
STATISTICAL
3,331
Centerville, S. D.; John H. Crock¬
er,
1,889
268
one
were:
Thomson, Vice-President
Cashier, Bank of Centerville,
and
15,875
26,289
380
except
These
John N.
2,193
29,850
-•
27t*
•
Credit
in attendance.
were
14,867
:
MILL ACTIVITY
Unfilled
—
Agriculture
of
Allegheny District—
Baltimore & Ohio
and farmer leaders.
All of the
members of the Subcommittee on
0
4,929
Total
"Previous
on
deliberations, the committee con¬
ferred
with
legislators, spokes¬
for government
departments,
0
10,549
Texas & Pacific
I. v v•-,\.;
Akron. Canton <te Youngstown
investi¬
men
of
7,493
—
;
9,686
6,123
'> •.■'?%;
: .2,221
12,864
Wabash
•V
2,909
8,551
taken to
were
the proposed
resentatives is expected to under¬
take soon.
In the course of their
13
632
Missouri Pacific.—
Quanah Acme & Pacific
St. Louis-San Francisco
St. Louis Southwestern
2,206
prepare for
1
323
Missouri-Kansas-Texas Lines
43
6,462
Consid¬
gation of the Farm Credit Admin¬
Minn.;
610
'
210
:
thorough study was
developments
latest
given to potential leg¬
was
Farmers
3,722
2,078
1,644
A
the
islation, and steps
140
....
7,558
<
eration
846
l._.
Midland Valley..
Missouri & Arkansas
6,336
/
of
512
2,431
City Southern
Louisiana & Arkfmsas
217
>
made
101
Kansas. Oklahoma & Gulf
4*
':
409
Pittsburgh & West Virginia
Total—
14,758
2,446
6,218
Pittsburg & Shawmut1—:
Pittsburg, Shawmut & North.—
•1
14,306
1,353
chairman of the sub¬
as
committee.
ers
Kansas
7,538
5,942
—
5,*20
—
& Western———.
Pere Marquette—...
283
Thomson, Vice-
in the farm credit field.
975
123,276,
4,869
v
685
Pittsburgh & Lake Erie
1,540
N.
D.,
presided
960
16,515
.
Total
142
7,854
& Western
v
622
811
.
1944
1,546
John
2,068
__
Litchfield & Madison
1945
uation.
President and Cashier of the Bank
of
Centerville, Centerville, S.
812
288
..
_
6,274
—42,709
H. Y„ N. H. ils Hartford.il.—;
Rutland—:
2.450
143
Maine Central—
N. Y., Susquehanna
2,153
4,002
Lehigh & Hudson River........
lebleh to New England..—
New York, Ontario
2,422
10,015
-
Grand Trunk Western
Montour—
262
370
—-
-
■1943
261
4,443
.
Delaware, Lackawanna & Western
Erie
1944
301
on Federal
Legislation, met
Washington for four days end¬
ing Feb. 4 for the purpose of re¬
viewing the whole iarm credit sit¬
in
1.896
27,380
International-Great Northern
Total Loads
Railroads
American
Subcommit¬
on Agricultural
Credit, which
part of the Association's Com¬
is
724
-
Gulf Coast Lines
10
the
tee
1,434
Burlington-Rock Island
CONNECTIONS
of
Association
mittee
870,
Southwestern District—
REVENUE
Members
Bankers
967
-
Western Pacific
•
4,164
4,034
_
_
2,919 r.
350
_
Union Pacific System
796
1,537
77,119
..
Southern Pacific (Pacific)—
Toledo, Peoria & Western
*614
y
2,458
86,637
_
_
43
2,291
_
_
74
2,337
°244
_
__
966
y
9,097
Colorado & Southern
Denver & Salt Lake
04
12,497
4,429
3,594
..
972
213
1,863
82,304
Alton
Bingham & Garficlcl
Chicago, Burlington & Quincy
Chicago & Illinois Midland
Chicago, Rock Island & Pacific
Chicago & Eastern Illinois-
470
298
2,105
;l
J 1,906
Spokane International
Total
522
232
_
Minneapolis & St. Louis
Minn., St. Paul & S. S. M
Northern Pacific..
14,213
3,628
11,331
_
Bay & Western
Lake Superior &
14,264
2,459
18,826
Dodge, Des Moines & South
_
14,390
2,759
20,596
Atlantic
Elgin, Joliet & EasternFt.
Great Northern
15,684
2,476
20,687
With the corresponding week a- year ago.
;■
Agricultural Credit
Agriculture of the House of Rep¬
Northwestern District—
During this period only 5J roads showed increases when compared
•
on
istration, which the Committee
755,436
The following table is a summary of the freight carloadings for
$he separate railroads and systems for the week ended Feb. 10, 1945.
1,854
3,363
355
2,762
738,680
4,431,423
440
1,683
289
40
2,910,638
4,757,595
355
1,726
303
428
Fort Worth & Denver City_
Illinois Terminal
1943
405
1,658
1,507
3,158,700
.
4,495,660
-
12,699
4,010
34
Peoria & Pekin Union
,
14,731
3,697
980
loading amounted to 10,757 cars, an increase of 542 cars
•above the preceding week but a decrease. of
3,202 cars below the
"corresponding week in 1944.
4 Weeks of January—.,
13,337
3,731
357
Ore
above
13,164
981
the corresponding
grain and grain products
alone,
1,575
404
week and a decrease of 12,453 cars
week in 1944.
In the Western Districts
totaled
2,692
1,684
Georgia—
of 385 cars below the
preceding
below
373
2,715
675
Georgia & Florida..
Illinois Central System
Louisville & Nashville
Loading of merchandise less than carload lot freight totaled
96,763 cars, an increase of 3,027-cars above the preceding week but
a
350
833
Clinch-field—
Gulf, Mobile & Ohio.:
cars
ABA Subcommittee
1944
333
Gainesville Midland
Miscellaneous freight loading totaled 363,345 cars, a decrease of
1945
798
Central of Georgia
Florida East Coast
322
1943
867
Durham & Southern
10 increased
2.3% above the preceding week.
or
Atlantic Coast Line.
1944
315
Columbus & Greenville
week of Feb,
Connections
753
;
Charleston & Western Carolina
'
Received from
931
Atl. & W. P.—W. R. R. of Ala
10, 1945,
Total Revenue
Freight Loaded
1945
Alabama, Tennessee & Northern
totaled 755,436 cars, the Association, of American Railroads announced
on
871
Total Loads
Railroads
*
.
FINANCIAL CHRONICLE
December
Production
Tons
Orders
.....
.
2.
Percent of Activity
Tons
Current Cumulativ*
207,817
157,644
535,745
96
94
141,154
158,266
515,738
96
94
135,644
110,144
156,667
494,062
96
94
149,062
450,898
91
94
189,731
154,682
484,811
94
94
December
9^
173,669
154,822
16.
501,946
95
December
94
137,936
152,695
December
23.
480,929
94
94
126,115
149,031
451,891
94
94
109,895
88,105
471,289
57
93
189,769
125,882
532,194
80
80
December
30.
Week Ended Feb. 10, 1945
According to the National Lum¬
ber
Manufacturers
lumber
Association,
shipments of 472 mills re¬
porting
to the National Lumber
Trade Barometer were 5.&% above
production for the week Feb. 10,
1945.
ders
Remaining
Tons
Lumber Movement
In the
of
than
order
files
amounted
week
same
these
more
mills
production.
of
to
the
97%
new
were
or¬
5.9%
Unfilled
reporting mills
of
stocks.
For
reporting softwood mills, unfilled
orders are equivalent to 37
days'
production at the
gross
stocks
are
current, rate, and
equivalent to 36
days' production.
Period
For the
1945—Week Ended
January
January
13——
January
20
January
27
of
149,921
150,011
524,308
95
87
131,901
150,876
503,240
94
89
159,885
152,075
510,931
95
91
3
204,550
148,139
February lo
565,064
92
91
149,590
151,307
560,960
93
92
February
Notes
not
Unfilled
necessarily
reports,
ments
ordeis
of
—
—
orders of
equal
made
unfilled
the
foi1
orders.
the prior
unillled
or
week, plus orders received, less production, do
Compensation for delinquent
orders st the close.
filled from stock, and other
Items
made
necessary
adjust¬
year-to-date, shipments
reporting identical mills ex¬
ceeded
ders
production
by
6.8%;
or¬
by 17.3%.
Compared to the
average corre¬
sponding week of 1935-39, produc¬
tion of reporting mills was 42.8%
greater;
shipments were 32.2%
greater; and orders were 25.2%
greater.
merly
Companies
Items About Banks , Trust
of
Company
Trust
Guaranty
16
announced on Feb.
New York
appointment of Walter H.
as
a
Second Vice-Presi¬
dent.
Mr. Potter has returned to
his former duties at the bank after
the
Potter
more
■
than two
years
which he served
during
service,
in military
Medical Corps in
-this country and overseas with
the rank of Lieut.-Colonel.
Prior
with the Army
7, filling the vacancy caused by
the death of Stephen G. Pierce.
the Hartford
"Courant" began his banking ca¬
reer
in
1916 with the National
Mr.
Bidwell,
the
he
war
was
Guaranty Trust
of the
Treasurer
Assistant
an
tional.
elected Assistant
He was
his reinstate¬
..Company, and with
promotion he continues
identified with the Banking
ment and
to be
He was Presi¬
dent of Hartford Chapter, Amer¬
ican Institute of Banking in 1926
in
taken
has
and
York on Feb. 15,
to the
board. Mr. Stillman, senior part¬
ner
of the New York Stock Ex¬
change firm of Stillman, Maynard
& Co., has been in the financial
district since 1905, when he grad¬
Company of New
Bank
elected Walter NV Stillman
Conn.,
He is President
of the Union Club and a trustee
of the Society for the Relief of
the Destitute Blind and of the
Downtown Association.
uated from Yale.
Trust Company,
Manufacturers
established a
banking office at the Navy medi¬
cal supply depot which is located
,i< at
the corner of Pearl and Sands
Streets, Brooklyn, and serves as
has
York,
New
distributing center
for medical supplies and equip¬
ment of the U. S. Naval Forces,
warehouse
a
ashore
and afloat.
a
Co.,
Hartford,
member of the
staff and its predecessors
50
died on Jan. 25 at
years,
the age
The Hartford
of 68 years.
26 reported
at the time of his death Mr.
that
Jan.
'oil
"Courant'
Chapin was senior member of the
Hartford
Aviation
Commission,
which
on
served three
had
he
President.
terms as
a
the
meeting
Board
Union Na¬
Three officials of the
J., who
been given new titles, have
with the institution since its
Brown
of
Brown,
father
was
a
of the Bank for
over
40
His
Co.
been
organization in 1925, it was made
known by the Newark "Evening
News" of Feb. 10, from which we
quote:
"They
William Dunkel, who
promoted to Executive Viceare
Vice
from
-
President
and
Trust
F. Wal¬
the Bay Ridge
Brooklyn, N. Y.,
The election of Fergus
lace, as a trustee of
announced
Feb.
on
Re¬
14.
porting this, the Brooklyn Daily
"Eagle" stated that Mr. Wallace
is President of Wessel, Duval &
Co., Inc. of New York City. The
Bay Ridge Savings Bank is a $71,000,000 institution
000 depositors.
with over 92,-
Margett,
of
the Community
Services of Queens and Nassau.
director
elected
a
of
Bender
trustee of
has
the
been
Home
Savings Bank of Albany, N. Y.,
succeeding the late Noel S. Ben¬
nett, it was announced following
the monthly meeting of the board
of trustees on Feb. 13.
The Al¬
bany "Times Union" in reporting
this further said: "Mr. Bender be¬
comes
the
14th
member
of
the
Savings bank board. He is
Vice-President of Matthew Ben¬
Home
who have been law
book publishers in Albany since
1877.
He is also a director of the
Consolidated Car Heating Co.
der
&
Co.,
Frederick H.
of
The
from
sale of the additional shares
funds
the
of
Bidwell, Assistant
First National
the
re¬
the
was
apportioned to the bank's surplus.
It is announced that at the close
officers and directors
S.
Banfield, President
of the Aberdeen, S. D., National
Bank since 1939, has been elected
will
of
Bank
tional
First
Na¬
Minneapolis
and
the
of
Vice-President
of the latter
E. Wakefield,
President, announced on Feb. 7.
In indicating this the Minneapolis
of
1939 he
to
was
"Mr. Banfield will be
succeeded
L. H. Ickler, Jr.,
former President of the National
He in
will be succeeded by F. L.
operating affil¬
Corporation,
Stock Corpora¬
iate of First Bank
Tex.,
was
City
(Mo.)
"Star"
Company of Kansas
Emma Hall on Feb. 6
Miss
an
was
Vice-Presi¬
institution. It is added
Assistant
is the first woman ever
she
that
City,
such a high position in
Kansas City bank.
to occupy
any
The
resignation
of
Clay
Mc-
Candless,
as
President of the
Stock Yards Bank of Louisville,
Ky.,
announced
was
Feb.
on
in the
past year was reported.
of the original
which
•
of the plan of the
Completion
Commerce
of
Bank
National
in
retire all
its $1,200,000 of preferred stock
Orleans
New
of
(La.)
announced,
Oliver
13
Feb.
on
by
it is
Orleans
LucasX President,
G.
the
from
learned
to
New
Feb.
of
"Monday [Feb.>.121, the Comp¬
Wash¬
$5,687,500; surplus, $9,000,000 and un¬
divided profits approximately $2,.700,000.
The increase in capital
funds, Mr. Williams said, "will en¬
19, 1945—capital,
able the bank to take greater
ad¬
present excellent
vantage of the
opportunity to enlarge the scope
of its business." Following a rec¬
ommendation of the bank's Board
of
' Corn
Directors,
stockholders
of
proval
shares were
ers
on
Jan. 9, voted ap¬
additional
offered to stockhold¬
of record Jan.
of
basis
one
capital
proposed
the
increase.
stock
Exchange
The
11, 1945, on the
share for each four
price of $40 per
16, Mr. Williams
certified to the Comptroller of the
share.
at
a
On Feb.
that the bank had re¬
ceived all of the funds from the
sale of additional shares of stock.
Currency
George L. C. Scheirer has been
Cashier of the, National
elected
Capital
Bank
of
Washington,
D. C., it was announced on Feb. 15
by President Geo. A. Didden, Jr.,
according to advices in the Wash¬
ington "Post," by S. Oliver Good¬
man, from which we also quote:
"Mr.
left
Scheirer fills the position
by the recent resignation of
'
was
impelled
advancing
years
(he was one of the few
octogenarian bank Presidents in
to
resign
the
because
and
State)
duties
creasing
of
of in¬
the 'position.
because
of
Under his administration as Pres¬
ident, the total resources of
Stock
from less
1932 to the
Yards Bank have grown
than
fect
"Under the
plan, the bank
new
starts business today
with $3,000,-
capital stock and $1,500,000
000 of
surplus and undivided profits
of
capital reserves of approxi¬
mately $741,000.
and
bank share¬
approved the plan under
each of the 4,200 share¬
which
holders
2-3 of
a
stock
mon
dividend
at
was
of
$18.
At
stock
$500,000
a
declared. Of the 50,-
additional
000
share of com¬
a
cost
a
time,
same
the right to
given
were
subscribe
the
share of¬
common
stockholders, all but 4,497
taken by subscrip¬
These shares were sold Sat¬
fered to
shares
tion.
were
late
Henry
F.
Embry,
who
inspired organization of the bank.
Foster H. Embry has been a di¬
rector of the institution for the
last
30
"Mr.
Peoria
years.
Embry
is
President
of
(111.) Union Stock Yards;
(Ind.)
Union Stock¬
yards; Dayton (Ohio) Stock Yards;
Green-Embry & Co., Cincinnati,
and Tatum, Embry and Huddleston, Montgomery, Ala. He is VicePresident and Chairman of the
Board of Evansville (Ind.) Union
Stock Yards. He also is a direc¬
tor of Union Stock Yards, Mont¬
Lafayette
Ala.; Union Stock Yards,
Wichita, Kan.; Emmart Packing
Company
and
Bourbon
Stock
gomery,
Yard Company.
Comer
and
J.
Kimball, Vice-Presi¬
investment
officer
of
last,
6Y4%
and
of 9%
dividends
"The
August,
A further dividend of
9% is now declared in respect of
the £4 shares, making 18% for
£388,481.
the
and
year;
a
of 614% on the
further dividend
stock will be paid,
making the maximum
of
the First
of
stockholders
the
National Bank, Houston,
Tex., the
four top
income tax)
Feb.
on
whose
ers
15
mittee.
He
was
years,
named
Com¬
is succeeded by F. M.
of
Chairman
Advisory
the
Law, President for 15 years.
Kirkland, now on
Commander in the United
"William
leave
as
A.
Navy, was named Chair¬
of the Executive Committee.
States
man
who came to the
1944, as Executive
Vice-President, was elected Presi¬
F.
P.
bank
Butler,
1,
May
dent.
has
Announcement
for
plans
the
Trust
Guardian
books of
the
were
names
the
1
to
stockhold¬
registered
company
on
31, last.
•
has been transferred
to
bank premises reinstatement
and rebuilding account and £300,000
to
officers'
pension fund,
£ 300,000
leaving
a
balance of £535,285 to
carried forward."
be
Chairman of the
"John T. Scott,
for
payable
"The dividends will be
(less
"
meeting
annual
the
of 1214%
for the year.
Dec.
Following
in
absorb
stock,
the
on
paid
£4 shares
the
on
in
been
made
of
directors
The
the
Midland
Bank, Ltd., of London, announced
on
Feb. 2 that Stanley Christo-
pherson, who accepted the Chair¬
manship of the Board until the
appointment in due course of a
permanent Chairman, has now re¬
linquished that position, but re¬
tains his seat on the Board. It is
also announced that the Marquess
of
Linlithgow, who joined the
Board in
May, 1944, has been
elected Chairman of the bank and
of the Midland Bank Executor and
Trustee Co.,
Ltd.
merger of the
Co. of Houston,
with the Second National
Bank, of that city, as to which it
is stated that only last November
the Second National completed a
Lloyds Bank, Ltd., London,
The
England, reported in its statement
of condition as of Dec. 31, 1944,
total
that
deposits
were
£819,-
with the San Jacinto Na¬
tional Bank of Houston. Advices
in the Dallas "Times-Herald" by
Alvin Du Vail from Houston fur¬
273,880 and total* resources £876,918,242
compared,
respectively,
with £727,903,279 and £775,739,-
ther
with
merger
report, in part:
Second
National and Guardian Trust will
meet
March 8 to consider and
"Stockholders
the
of
ratify a contract for consolidation
of the two institutions.
The con¬
tract
entered into by unan¬
was
imous action of the
of
rectors
Dec.
30,
Chairman
of
have
a
boards of di¬
institutions
both
1944, Col.
the
Second National
"The
dent
report:
paid being $26.28 per share.
Tex.,
the
brought forward from 1943 leaves
the sum of £1,912,247.
The advices from the bank also
available
those shareholders and
late C. H. Wulkop.
President is a son of
contingency
afternoon to the highest
bidders.
A
premium of $17,000
was
realized, the average price
urday
of
new
appropriations
which accounts full
$1,000,000 in
total of approximately
$5,000,000. Mr. McCandless' pred¬
ecessor
in the position was the
"The
taxation, and after
to the credit of
accounts,
out
of
provision for
bad and doubtful debts has been
made,
amount
to
£1,366,907.
This
sum
added to
£545,340
present
/
"Mr. Scheirer, a newcomer with
National Capital Bank, for¬
the
McCandless
after providing
for the past year,
ington authorized the bank to put
recapitalization plan into ef¬
the
ville
"Mr.
profits of the West¬
Bank, Ltd., of London,
net
The
for rebate and
Board
also said in part:
of
manager
troller of the Currency at
Board, a position vacated by Fos¬
ter H. Embry,, who becomes Pres¬
capital funds of the bank as
Severne P. Rawlins,
the
bank's fiscal
agency at Camp Howze, Tex., also
has been given the title.
partment.
minster
portionment from
the sale of
stock, plus a transfer of $362,500
from undivided profits will make
Reporting this the Louis¬
"Courier-Journal" of Feb. 7
Jr., have been made Assistant
Vice-Presidents, and are assigned
to the bank's new business de¬
14,
550,000, surplus $7,500,000 and un¬
divided profits $2,880,000. The ap¬
ident.
Barrett and A. J. Kut-
W.
"M.
ner,
incorporators of the bank in 1904,
elevated to Chairman of the
Corn Exchange Nat'l Bk.
Co.'s capital was $4,-
Trust
one
appointments
the
reports
follows:
as
was
and
McCandless,
announced by Nathan
Adams, Chairman of the Board of
the bank on Feb. 13, it is learned
from the Dallas "Times-Herald,"
on
$2,500,000 to $3,000,000
from about
6
by L. M. Sanders, Executive Viceof the institution. Mr.
President
list of
based
country,
"Last January, the
reported on Feb. 7 that a few
days after the 33rd anniversary
of her start with the Commerce
Trust
in the
320th
deposits. Its deposits as of Dec. 31
were given as more than $45,000,000.
Increase
in
capital funds
holders
Kansas
appointment of three new
Vice-Presidents of the
Bank of Dallas,
The
that
National
this
serve
■
record
of
First
in
and
personnel
national
,
The
added
the
the combined customers."
Assistant
Bank of Jamestown, N. D.
tion."
to
gained 43 places in a
banking
poll and has
which also stated:
at Aberdeen by
place because the Sec¬
will have
be further enlarged to house
take
the bank has
reached
the two banks
was
announced
was
"Times-Picayuner
Minn.
turn
It
the
before
time
some
ond National's quarters
extra
an
stockholders
for
From
President of
First National Bank of Owatonna,
can
were
share
per
became
1926.
in
Vice-President
and
$1
cents
50
25.
Feb.
was
I Mr. Banfield]
he
1915,
of
be
actual combining of
At the directors' meet¬
dividend
one
the staff
join
March 1, Lyman
on
would
ing following, the regular month¬
ly
Bryan, President of the
National Bank, said it
R.
Second
officials of the bank were
advanced, as follows, according to
the Dallas "Times-Herald".:
of 1944,
S. Wilson Earnshaw.
Cashier
Richard
"L.
a
reelected.
of the largest trust de¬
one
partments of any bank in Texas.
graduate of the Univer¬
sity of Virginia and has had 16
years of experience in the bank¬
ing and investment field.
All
other
give the Second Na¬
will
tional
Mr. Kim¬
President of the bank.
banks
tion
shares held
Matthew
Presi¬
announced.
Ray Phillips
dent of the
the
Jackson
Heights, has been elected to the
board of directors of the Flushing
National Bank, of Flushing, Long
Island.
Mr. Margett is former
President of the Long Island City
Lawyers Club, former President
of the Queens County Legal Club,
and a member of the board of
managers of the Queens County
Bar Association.
He is also Presi¬
dent of the Lawyers Club of the
Federation of Jewish Philanthropic
Societies of Queens and Treasurer
and
Cashiers of the LaSalle
proval by the Comptroller of the
Currency of the increase in the
bank's capital from $4,550,000 to
$5,687,500. The Comptroller's ac¬
permits the addition to capi¬
tal of a portion of the funds de¬
rived from the sale of 56,875 ad¬
meeting, according to advices
Feb. 14 from R. E. Conn, Vice-
now
C.
"Colonel Bates said the consoli¬
dation
ers
dent
elected
of Feb.
Charles
elected
been
with deposits of
approximately $130,000,000.
undivided profits,
Palm
Bank,
Fla., for the past five
years, was added to the Board of
Directors at the annual stockhold¬
National Bank in Chicago,
phia, has been notified of the ap¬
mainder
was
Williams, President of
Bank
Company, of Philadel¬
the Corn Exchange National
ditional shares of stock.
Bank,
Coy have
ice
Mr. Brown is a Director of
City & Suburban Homes Co., Ful¬
ton Trust Co. and Mercantile In¬
Savings
H.
National
First
voted
Edward W. Masterson and Wil¬
held
years.
surance
holding that position for 26 years.
of
Harris,
Board.
Trustee
years
Durand, since 1930 Manager of the
Credit Department of First Serv¬
Stevens, Inc.,
was elected a Trustee of The Bank
for Savings in the City of New
York at the February meeting of
the
Mr. Talbott retired as Pres¬
of the bank on Jan. 1 after
ident
1934
David E.
Wheelock,
of
age.
have
,
S.
77
at
on
its
the Company.
Charles
12
Feb.
died
"Star-Journal" said:
and Cashier; Arthur B. Irwin, who
on Feb. 20
Directors of was promoted to Cashier from
Bankers Trust Company of New Assistant Cashier, and Joseph S.
York, Harold C. Strait was elect¬ Havis, who was promoted from a
ed an Assistant Treasurer.
Mr. teller to Assistant Cashier. An¬
other Assistant Cashier named is
Strait will continue his assign¬
.
ment at the 57th Street Office of Leslie Coffman.
At
Na¬
Patapsco
Bank in Ellicott City, Md.,
tional
tional Bank of Newark, N.
President
by
former
Talbott,
the
of
"Entering employ of First Na¬
tional Bank of Austin, Minn., in
was
.
and
bank's
for
Trust
&
Secre¬
National
Hartford
the
of
tary
Chapin,
W.
■
Assistant
Trust
Fulton
the
of
Edward
President
the
Beach,
ball is
Co. of Chicago.
liam
Dudley
Robert
Directors
prominent part
a
activities.
its
Office.
Department at the Main
-
1926.
in
ployed by the National City Bank
of New York and prior to that
was associated with the Continen¬
tal Illinois National Bank & Trust
says
Exchange Bank, which was after¬
wards absorbed by the First Na¬
Cashier
Previously, he was em¬
Savings.
Conn., was
elected Cashier by the bank di¬
rectors at their meeting on Feb.
•
to
dent of the Bank of Commerce &
Hartford,
of
Bank
Assistant Vice-Presi¬
was
Thursday, February 22, 1945
FINANCIAL CHRONICLE
THE COMMERCIAL &
872
on
W. B. Bates,
Board of the
bank
will
capital of $3,250,000, a sur¬
plus of $3,250,000
a
the
ajtd 'appropriate'
Bank
England
of
£93,628,018,
as
£76,816,596
other
Cash in hand and
year ago.
shown
and
compared
with
was
against
balances
British banks,
with
£31,969,611,
£32,125,163
on
1943.
Treasury deposit
receipts
were
£ 315,000,000,
Dec.
30,
against £225,000,000 while invest¬
stood
at
£204,087,424,
against
£215,805,908, of which
£178,743,795, against £191,283,220 (for last year) represent obli¬
gations of or guaranteed by the
ments
British
B^nk, said.
*: consolidated
715
Government.
advances
were
£104,232,012,
816.
Loans
shown
against
to
and
be
£112,675,-
@FedFRASER