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ruturie
SATURDAY,FEBRUARY 281931.
VOL. 132.
inanciat Chronicle
PUBLISHED WEEKLY
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The Financial Situation.
The event of the week, of course, has been the
veto by President Hoover of the Soldier Bonus Bill
and the quick overriding of the veto by both the
House of Representatives and the Senate by overwhelming majorities. The House disposed of the
veto in 43 minutes after the receipt of the veto message on Thursday, refusing to sustain the veto by a
vote of 328 to 79, or 58 more than the two-thirds
necessary to set aside the veto. In the Senate the
veto was overruled on Friday after a three-hour
debate by a vote of 76 to 17.
With sentiment so strongly in favor of the measure, as has been apparent from the first was the
case, it required great courage on the part of the
President to take such a determined stand against
legislation of that sort and in setting out the burden
it imposes upon the Treasury and upon the taxpaying public, and he is obviously entitled to no
small amount of credit for having done this, even
though he did only his public duty in the premises.
From every standpoint the measure is objectionable and indefensible, and Mr. Hoover characterizes
it in no uncertain terms. He also stresses the ill
NO. 3427.
consequences that are certain to follow. According
to the Administrator of Veterans' Affairs, says the
President, the probable number of the veterans who
will avail themselves of the privilege granted under
the measure will require approximately $1,000,000,000. Then the President follows with the statement, which is of high importance but to which
Congress refused to give heed, namely, that "there
not being a penny in the Treasury to meet such a
demand, the Government must borrow this sum
through the sale of the Reserve fund securities, together, with further issues, or we must need impose
further taxation." There is a warning in the latter
portion of this statement which carries a depth of
meaning that should not be lightly disregarded,
especially as it is certain that the income taxes the
present year will show an enormous shrinkage—far
in excess of what is now deemed likely, even in the
largest estimate thus far put forward. For ourselves we should not be surprised to see a shrinkage
of the tax yield to such an extent as to involve serious embarrassment to the Treasury.
There is one point in the President's message that
might well have been developed considerably further
in its bearing upon the future. We refer to the fact
that when the adjusted service certificates were
issued to the war veterans under a most liberal
arrangement it was supposed that the question had
been definitely and finally settled for all time. Now,
under the measure just passed, entirely new provision is made. How long will it be, after the payment of the billion dollars now called for, before
the whole question will be brought up anew in the
shape of provision for another largess to the veterans? The President does not ask this question,
but it is well worth considering.
Mr. Hoover does undertake to show how liberally
provision has already been made for the veterans,
and what he says on that point deserves to be quoted
in full, as follows:
"The principle that the nation should give generous care to those veterans who are ill, disabled, in
need or in distress, even though these disabilities
do not arise from the war, has been fully accepted
by the nation. Pensions or allowances have been
provided for the dependents of those who lost their
lives in the war; allowances have been provided to
those who suffered disabilities from the war; additional allowances were passed at the last session of
Congress to all the veterans whose earning power at
any time may be permanently impaired by injury or
illness; free hospitalization is available not only to
those suffering from the results of the war but to
large numbers of temporarily ill. Together with
war-risk insurance and the adjusted compensation,
these services now total an annual expenditure of
approximately $600,000,000, and under existing laws
will increase to $800,000,000 a year in a very few
1468
FINANCIAL CHRONICLE
years for World War veterans alone. A total of
$5,000,000,000 has been expended upon such services
since the war."
Let the reader ponder well the fact that expenditures for relief are now approximately $600,000,000
per year and will shortly increase to $800,000,000 per
year—"for World War veterans alone"—and that
"a total of $5,000,000,000 (five billion dollars) has
been expended upon such service since the war."
What the President sketches in the foregoing took
place in 1924, scarcely seven years ago. We repeat,
therefore, the qttestion already asked what assurance there is that in the course of a few years more
there will not be a repetition of the same experience.
In now authorizing loans of 50% of the face value
of the adjusted service certificates the obligation
appears to be entirely on the part of the Government, with no corresponding obligation upon the
part of the veterans who may avail of the loaning
privilege. As far as we can see, the veterans are
not obligated to pay either the loan which they may
obtain upon their certificates or the interest at 41/2%
which will accrue upon the amounts borrowed. Certainly they cannot be compelled to pay either interest or principal of the loans. Of course the assumption is that in the ultimate payment of the certificates in 1945, both the principal of the loan and the
interest will be deducted from the face value of the
certificates. But what is to prevent another
Congress to provide for relieving the veterans
from all payment of interest and even for the cancellation of loans themselves free of cost to the
veterans?
We may be sure, in any event, that the matter will
keep coming up in Congress after Congress, and that
in the end in a flood of sentiment favorable to the
idea the veterans will be relieved from the payment
of either interest or principal of the loans, and perhaps both. The result then would be that in 1945,
when the service certificates are payable, the Government would have to arrange afresh for the whole
$3,400,000,000 of adjusted service certificates outstanding.
Two important pieces of financing.face the country during the next two weeks. New York City is
in the market for $100,000,000, to be obtained on
long-term obligations, and the United States Treasury's March financing, which necessarily will be of
large extent, looms immediately ahead. New York
City is inviting bids up to noon on March 4 for the
purchase of $100,000,000 414% long-term obligations, consisting of $60,000,000 corporate stock for
Rapid Transit Railroad construction, running for
50 years, and due on March 1 1981,and of $40,000,000
serial bonds, $30,000,000 of the same payable in 40
equal annual installments from March 1 1932, and
$10,000,000 payable in 15 equal annual installments
from March 1 1932. In other words, the city is
undertaking to float a huge amount of long-term
issues. The offering contains the usual notice to
the effect that "the sale will not add to the debt of
the city, as it is for the purpose of providing funds
to take up short-term corporate stock notes," which,
no doubt, is literally correct, but is, nevertheless,
misleading, since it does not make note of the fact
that the city almost always incurs a large floating
debt as. a preliminary to the issuing of long-term
obligations, in the carrying out of its extensive
projects for new work,,of one kind or another.
[Vora. 182.
At present it is rather difficult to indulge in longterm financing to any extent, and the city has in
recent years been a considerable borrower and for
large amounts. On Oct. Mast the city invited bids
for $75,000,000 4% 50-year gold corporate stock,
but was obliged to reduce the amount to $50,000,000
on account of the unfavorable market and banking
conditions then prevailing, and then received only
one "all or pone" bid for the issue at a price slightly
4 of 1%
above par. This time the rate of interest is 1/
higher, and market conditions generally are more
favorable, though the appetite for any very extensive
amounts of new long-term issues of any kind is by
no means keen as yet.
The United States Treasury's March financing is
to be announced the coming Monday, which means
that the terms and particulars will be made known
to the press on Sunday night. It is awaited with
no little interest. Nothing definite has yet transpired as to the precise nature of the offering or offerings, though it is known that it will be of large extent
and it is assumed that it will consist in part of longterm obligations and in part of certificates of indebtedness. The situation is complicated by the necessity of making provision for the loans to be provided
on the adjusted service certificates as a result of
this week's bonus legislation. While President Hoover and Secretary Mellon have been opposed to the
50% loaning provision, they are, now that the measure has become a law, actively engaged in carrying
out its provisions.
In a letter which Under-Secretary of the Treasury
Ogden L. Mills, on Wednesday, addressed to Senator
Arthur H. Vandenberg, Republican, of Michigan,
Mr. Mills advised the Senator that three or four
hundred million dollars of the new Issues to be
announced would be for the purpose of making provision for the requirements of the adjusted service
certificate bill, should it become law, which has since
happened. In addition, as previously pointed out
by us, means will have to be provided to take up the
$1,100,000,000 of 3/
1
2% Treasury notes which have
been called for payment on Mar. 15. Besides this,
there are some maturing Treasury certificates of indebtedness and also some Treasury bills that will
have to be taken care of as part of the March financing of the Government. But Mr. Mellon will be
found equal to the occasion. He is certain to offer
terms sufficiently attractive to ensure unqualified
success for whatever obligations, long-term or shortterm, he may deem it best to offer. One step in the
direction of ensuring low interest rates has already
been taken by reducing to 1% the rate of interest
which the banks are obliged to pay on the Government deposits representing the proceeds of the sales
of Government obligations, whatever the form. The
country is fortunate in having at the head of the
Treasury Department a financier of such conspicuous ability as Mr. Mellon.
It seems proper to point out here that a slip
occurred in our remarks in this article a week ago in
discussing the differences in the rates of interest at
which the Treasury is able to dispose of certificates
of indebtedness in times of easy money in contrast
with the rates which it is obliged to pay when the
market is in A state of tension. We were made to
say that some certificates of indebtedness had been
put out in 1929 carrying 6% interest. This was a
mistake. The highest rate at that,time borne by Any
certificates was 51/2%.
FEB. 28 1931.]
FINANCIAL CHRONICLE
As is known,the Secretary of the Treasury is seeking authority to issue $8,000,000,000 more of United
States bonds by amendment of the Second Liberty
Bond Act so as to carry out the refunding operations that are contemplated during the next few
years. He is also seeking at the same time amendment of the Act so as to permit him to make future
issues of United States bonds exempt from the surtaxes as well as from the ordinary normal taxes.
In our issue of Jan. 1/7 we undertook to show the
inadvisability of such exemption, and pointed out
that step by step action is being taken to make all
United States obligations free, not only from the
ordinary normal taxes, but free as well from the
surtaxes which run on a graded scale up to 20%.
The bill containing the surtax exemption passed the
House of Representatives on Feb. 20, but not until
after considerable opposition had developed to the
extra tax exemption.
Representative Hull offered an amendment to the
bill which would have stricken out section two containing the tax exemption provision. This amendment was defeated, after considerable debate, by
the narrow vote of 111 nays to 100 ayes. Mr. Hull
moved to recommit the bill to the Committee on
Ways and Means with instructions to strike out
Section 2, but this motion was defeated by a vote
of 161 ayes to 199 nays. The bill is now before the
Senate, and it is to be hoped that the provision for
surtax exemption will be cut out, though the Senate
Finance Committee has reported the bill favorably,
including the surtax exemption. This is no time for
creating a special favored class of Government
obligations, both because it is wrong in principle and
because the Government in these depressed times
is in no condition to stand the loss of revenue
involved.
A rather unfortunate feature is the exceedingly
unfavorable income statements which the railroads
are submitting for the month of January. There
is little occasion for talking of any revival in business so long as the railroads, the great transportation agencies of the country, make such poor exhibits as are now coming to hand. Of course in
the early months of 1929 the railroads did not show
such heavy losses as occurred later in the year,
but they did show some losses of quite considerable
amount, and the present year's losses therefore come
on top of these losses of last year. A few illustrations must suffice to indicate the prevailing trend.
The Pennsylvania RR. reports $10,282,720 loss in
gross and $3,418,706 loss in net (before the deduction of the taxes) after $3,313,396 loss in gross and
$1,931,613 loss in net in January last year. The
Union Pacific shows $1,368,389 decrease in gross
and $506,111 decrease in net the present January
after $1,506,016 loss in gross and $924,313 loss in
net in January 1930. The Southern Pacific suffers
a decrease of $4,028,509 in gross and of $1,296,110
in net, following $2,195,599 lass in gross and
$1,314,815 loss in net in January 1930 as compared
with January 1929.
The Erie gives a somewhat better account of
itself, actually showing a small increase in net—
after taxes ($51,036) in face of $1,367,639 loss in the
gross; in January last year the Erie reported
$1,054,576 decrease in gross and $610,065 decrease
in net. The St. Louis-San Francisco earned
$4,649,694 in gross in January 1931 against
1469
$6,259,266 gross in January 1930 and $6,882,892 in
January 1929, and had net operating income (after
the deduction of taxes) of no more than $665,518 in
January 1931 against $1,172,262 in January 1930
and $1,495,688 in January 1929. The Northern
Pacific has done quite well, showing $101,255 gain
in net, with $835,125 loss in gross; in January last
year the Northern Pacific reported $729,233 loss in
gross and $593,856 loss in net. The Baltimore &
Ohio shows $3,227,829 loss in gross and $1,009,896
loss in net the present year, after $1,346,867 loss in
gross and $515,007 in net last year, and the Illinois
Central has suffered a further decrease of $3,361,457
in gross and $1,092,906 in net (after expenses, taxes
and rents), after having fallen behind $1,506,689 in
gross and $939,151 in net a year ago.
Brokers' loans on stock and bond collateral are
now showing a moderate increase, week by week, as
a result of the growing activity on the Stock Exchange. Tile figures this week, according to the
statement compiled by the New York Federal Reserve Bank, show an increase of $26,000,0,00, which
follows $23,000,000 increase last week and $33,000,000 increase the previous week, making $82,000,000 for the three weeks combined. Prior to
these three weeks,however, there had been a contraction of $1,506,000,000 in the total of these loans in
the 19 weeks preceding, during the whole of Which
period there was an uninterrupted decrease, with
the exception of one single week,in which there was
a nominal increase. Through the addition of the
last three weeks, the total of these loans is brought
up to $1,798,000,000 on Feb. 25 as against $1,716,000,000 on Feb. 4. On Sept. 24 1930, however, the
total was $3,222,000,000, and on Oct. 2 1929, when
these loans were at their maximum, the amount was
$6,804,600,000. The feature noted in recent previous weeks is again in evidence, namely, that the increase is found to be entirely in the loans made by
the reporting member banks for their own account.
In the three-week interval between Feb. 4 and Feb.
25, loans in that category have risen from $1,099,000,000 to $1,267,000,000. On the other hand, the
loans made by these reporting member banks for
out-of-town banks have fallen from $318,000,000
Feb. 4 to $260,000,000 Feb. 25, and the loans "for
account of others" in the same three weeks have declined from'$299,000,000 Feb. 4 to $271,000,000 Feb.
25. Of course with call loans on the Stock Exchange
clown to 11/2%,and loans in the outside market commanding no more than 1%, Stock Exchange lending is not attractive to outside lenders.
Federal Reserve credit outstanding is not showing any very great changes just now—certainly not
any of much consequence. The discount holdings
of the 12 Reserve institutions, representing member
bank borrowing, are a little lower this week at $189,847,000 as against $199,823,000 last week; but holdings of acceptances are slightly larger at $106,317,000 against $93,995,000. Holdings of -United
States Government securities are almost entirely
unchanged as far as the total amount is concerned,
although some of the separate items comprising the
total show considerable changes. As a result of all
this, the grand aggregate of the hill and security
holdings, which reflects the volume of Reserve credit
outstanding, is slightly larger at $895,607,000
against $893,492,000 a week ago. The amount of
Federal Reserve notes in circulation is slightly lower
1470
FINANCIAL CHRONICLE
[Vol.. 132.
at *1,448,416,000 against $1,449,156,000, while gold ceptions to the rule. General Electric closed yesterreserves are also somewhat smaller at $3,081,322,000 day at 5214 against 51 on Friday of last week; War4;Elec.Power &
ner Bros.Pictures at 16 against 183
as against $3,084,408,000.
Light at 583
s against 54%; United Corp. at 27%
/
8; Brooklyn Union Gas at 1221% against
/
On the Stock Exchange there has been no abate- against 237
4 against
1181%;
Water Works at 773
American
have
that
ment of the buoyancy and rising prices
1
against
4;
84
Pacific
88
at
/
697
8;
American
weeks.
The
North
successive
in
been
evidence for several
% against 48%; Standard Gas &
volume of trading is now quite large from day to Gas & Elec. at 503
day, and there seems to be an underlying tone of con- Elec. at 84% against 75; Consolidated Gas of N. Y.
siderable strength. There have been no special de- at 99y8 against 97; Columbia Gas & Elec. at 42%
velopments in the industrial and commercial world against 40%; International Harvester at 59%
to which the advances could be attributed, though against 57%; J. I. Case Threshing Machine at 120
the iron trade continues in a moderate kind of way against 1233%;Sears, Roebuck & Co. at 60% against
8;
/
to show increasing activity. The "Iron Age" this 57%; Montgomery Ward & Co. at 27% against 237
;Safeway
8
/
637
at
Stores
against
country
engaged
the
of
mills
63%
Woolworth
at
week reported the steel
Union
Telegraph
at
145
Western
and
/
593
week
48%
last
8
51%
61%;
against
against
capacity
at 52% of
at the beginning of the month. On the other hand, against 143%; American Tel. & Tel. at 198% against
there have been certain developments distinctly dis- 19734; Int. Tel. & Tel. at 341% against 35%; Amer8; United States
/8 against 1251/
couraging to a speculative revival on the Stock ican Can at 1247
Exchange. Among these may be mentioned in par- Industrial Alcohol at 71% against 67%; Commer8 against 201%; Shattuck & Co.
/
ticular the passage of what is known as the Soldier cial Solvents at 197
on
placed
burden
thus
at 28% against 28%; Corn Products at 85 against
Bonus Bill, with the extra
8 against 12/
4.
1
when
is
time
it
on
a
at
Department
86,
and Columbia Graphophone at 121/
the Treasury
Allied Chemical & Dye closed yesterday at 171
the eve of financing on a large scale, and besides
this, returns of railroad earnings, which have been against 177 on Friday of last week; E. I. du Pont de
coming in for the month of January, have been of a Nemours at 991/
8 against 98%; National Cash Regisdecidedly depressing character by reason of the ter at 381% against 36; International Nickel at 18%
heavy losses which they have recorded as compared against 18%; Timken Roller Bearing at 58 against
with the same month last year, when earnings were 56%; Mack Trucks at 42 against 42%; Yellow Truck
.already recording considerable losses as compared & Coach at 13% against 133%; Johns-Manville at
72 against 731/
with the year preceding.
8; Gillette Safety Razor at 29%
The fact that the market has been able to maintain against 32; National Dairy Products at 46 against
its strength in the face of such adverse circum- 471%; National Bellas Hess at 8% against 7%;
stances, and has enjoyed a further substantial rise, Associated Dry Goods at 27% against 27;; Texas
must be deemed significant. A very confident feel- Gulf Sulphur at 547
/8 against 54; American Foreign
8; General American Tank
ing prevails, however, that trade will before long Power at 44% against 421/
8; Air Reduction at 101%
show considerable recovery, and, besides this, the Car at 71% against 697
/
extreme ease in the money market, with the low against 103; United Gas Improvement at 34 ex-div.
rates for money, is at all times a factor that serves against 30, and Columbian Carbon at 106
to stimulate speculative activity. The market each against 106.
day has had periods when after a brisk further rise
In the steel shares United States Steel closed
8 on Friday
/
there would be a sharp downward reaction, but yesterday at 148% ex-div. against 1477
8 against 64%;
these have never interfered with the general upward of last week; Bethlehem Steel at 681/
course of values, and the same may be said of the Vanadium at 67% against 711/2, and Republic Iron
weakness that has occasionally appeared in special & Steel at 23% against 23'/
78. In the motor stocks,
groups of stocks such as the rails, which, in only a Auburn Automobile has again been the sensational
few instances, have shared in the general rise, and feature. General Motors closed yesterday at 437
8
/
some of which, as in the case of the St. Louis-San against 433
4 on Friday of last week; Chrysler at
Francisco shares, have suffered severe declines. The 221% against 21%; Nash Motors at 36 against 37%;
high-priced specialties, as on many previous occa- Auburn Auto at 2051% against 199; Packard Motors
sions, have been special favorites, and the copper at ,111% against 11%; Hudson Motor Car at 217
/8
shares as a group have also made a good display of against 23, and Hupp Motors at 12 against 12%.
strength. Call loans on the Stock Exchange have The rubber stocks have not been buoyant. Goodyear
2%,while Tire & Rubber closed yesterday at 49% against 487
again remained unaltered day by day at 11/
8
/
have
loans
Exchange
commanded
on Friday of last week; U.S. Rubber at 16% against
outside the Stock
as a rule only 1%.
15%, and the preferred at 2934 against 29%.
Trading has been heavy. At the half-day session
The railroad list has lagged behind on account
on Saturday the sales on the New York Stock Ex- of the poor income exhibits of the roads for Janchange were 2,434,640 shares; Monday was Wash- uary; in some instances heavy losses appear. Pennington's Birthday and a holiday; on Tuesday the sylvania RR. closed yesterday at 631% against 62%
sales were 5,345,710 shares; on Wednesday,4,388,062 on Friday of last week; Erie RR. at 38% against
78; New York Central at 1287
shares; on Thursday, 4,623,239 shares, and on Fri- 35'/
8 against 12834;
/
day, 3,724,674 shares. On the New York Curb Ex- Baltimore & Ohio at 841% against 84; New Haven
change the sales last Saturday were 528,600 shares; at 92 against 90%; Union Pacific at 204% against
on Tuesday, 924,400 shares; on Wednesday, 781,700 2023%; 'Southern Pacific at 1061,4 against 107%;
8; South/
78 against 237
shares; on Thursday, 1,095,800 shares, and on Fri- Missouri-Kansas-Texas at 24'/
ern Railway at GO against 61; St. Louis-San Franday,848,400 shares.
Ascompared with Friday of last week, prices show cisco at 463
4 against 60; Chesapeake & Ohio at 44%
pretty general improvement, as a rule, on top of the against 44%; Northern Pacific at 58% against 561h.
gains of previous weeks, though there are some ex- and Great Northern at 68% against 68.
FEB. 28 1931.]
FINANCIAL CHRONICLE
The oil shares are not greatly changed. Standard
1
2 on
Oil of N. J. closed yesterday at 50% against 51/
4
Friday of last week; Standard Oil of Calif. at 501/
against 50%; Simms Petroleum at 10 against 97
/8;
4 against 10; Atlantic Refining at
Skelly Oil at 101/
2;
22/
1
4 against 22%; Texas Corp. at 34 against 341/
/
8 against 47
/8; Phillips Petroleum
Richfield Oil at 47
4 against 14%; Standard Oil of N. Y. at 251/
at 141/
8
against 25%, and Pure Oil at 101/
4 against 101/
2.
The copper shares have been among the strong
features of the week. Anaconda Copper closed yesterday at 411/
4 against 39/
1
2 on Friday of last week;
Kennecott Copper at 297
2; Calumet &
/8 against 291/
Hecla at 101/
2 against 10; Calumet & Arizona at 411A
against 40%; Granby Consolidated Copper at 21/
1
4
4
against 19%; American Smelting & Refining at 551/
against 53%,and U. S. Smelting & Refining at 22/
1
4
against 21.
Favorable price trends were the rule on all the important European stock exchanges this week, notwithstanding some irregularity on the continental
markets. The firmer tone at London, Paris and
Berlin was accompanied by substantial dealings,
which were influenced in good part by the hopeful
reports from the New York market. Pronounced
strength was manifested on the London Stock Exchange, with sharp recovery of British funds the
most notable feature. The Paris and Berlin exchanges moved alternately higher and lower, but
with gains more pronounced than declines. These
movements were related only in a distant way to the
European business situation. There is as yet no
definite sign of business revival in Great Britain,
recent dispatches state, while in France trade reaction is still gaining force. In Germany some faint
signs of improvement are reported in the minor
manufacturing industries, but the heavy industries
have not made any progress. There is, 'however, a
fairly general expectation in Europe that moderate
improvement in trade and industry will take place
during the next few months, largely on the basis of
a rapid decrease of merchandise stocks in the hands
of dealers. Monetary conditions remain easy at
London, notwithstanding slight recent tightening.
The Paris market is flooded with funds and rates
there are phenomenally low. Call loans in Berlin
range between 4 and 6%, but these rates are considered satisfactory.
Dealings on the London Stock Exchange were
started in very cheerful fashion Monday, almost all
sections of the list advancing in the active session.
The nervous selling of British funds previously reported came to an end and most issues showed substantial recoveries. International stocks were bony.
ant on favorable week-end reports from New York,
while the British industrial section also improved.
Further gains were registered in another active session at London Tuesday. British funds advanced
in the early dealings and a reaction toward the close
cancelled only a part of the day's gains. Home rail
stocks were in demand and the British industrial
list also gained. International issues were active
and higher, notwithstanding the holiday Monday at
New York and the lack of overnight reports. Rubber
shares and oil stocks were dull and slightly lower.
The tone Wednesday was again cheerful, with trading in British Government issues exceptionally large.
Higher prices were recorded for all such issues. The
industrial list was firm at first with some irregu-
1471
larity reported toward the end of the session. International issues were less active and some recessions
appeared in this department. Business Thursday
was on a reduced scale, but the tone remained firm
in most sections of the list. International stocks
were favored on good reports from New York and
there were again some good spots among British
industrials. The advance in British funds was
continued. The session yesterday was fairly active,
and prices moved upward. Gilt-edged issues were
strong and international stocks also gained.
The Paris Bourse was quiet in the first session of
this week, with the trend of prices slightly downward
in most departments. A mild rally toward the close
did not alter conditions greatly, and small net losses
were general. Electrical issues and a few industrial
stocks resisted the movement and showed minor
gains. Slow improvement began at the start of trading Tuesday but the volume of trading remained
limited and the gains were not important. The better,
tone resulted, however,in recovery of the losses registered in the previous session. Prices at the close
were the highest for the day. The opening Wednesday was firm, largely owing to favorable reports
from London and New York. The bright aspect was
not maintained, however, and a slow decline set in
which caused losses in a majority of stocks. Royal
Dutch and Central Mining shares were the largest
losers, it was reported. Although conditions on the
Bourse remained quiet, prices again turned about
Thursday and moved to higher levels. The gains
were small owing to light trading and some exceptions to the better tone were reported in the international section. Prices were firm on the Bourse
yesterday in a moderately active session.
Trading on the Berlin Boerse was stimulated Monday by good reports from New York over the weekend and stocks moved upward substantially at the
Opening. Attacks by bear operators caused some uncertainty as the session progressed, but the strong
tone was resumed toward the end and closing prices
were only slightly below the best levels reached so
far this year. Mild recessions occurred on the
Boerse Tuesday, with vigorous bear attacks only
partly successful. Activity was limited in most sections and price changes were small. I. G. Farbenindustrie was selected as the center for bear attacks,
and the issue declined three points. After a firm
Opening Wednesday, prices on the Berlin market
began to decline. The downward movement continued most of the day, with the result that average
levels moved off one to two points. The decline
was ascribed chiefly to a Siemens-Halske report to
stockholders wherein doubt was expressed regarding
the ability of the compiny to continue dividends at
the current rate. Moderate improvement followed
on the Boerse in Thursday's dealings. The opening
was listless, but trading improved on a statement
by the head of the A. E. G., that the lowest point in
the business cycle may be regarded as reached, with
betterment probable henceforth. The Berlin market
was steady in quiet dealings yesterday.
Promising developments were reported from
Europe this week in the protracted attempt to adjust
the differences between France and Italy in regard
to their respective naval construction programs.
The divergence sin the views of Paris and Rome
became pronounced during and after the London
naval conference of 1930, the two continental
1472
FINANCIAL CHRONICLE
[vol. 132.
powers subscribing to the agreement then reached the issue of man power, which imposes the real limit
only in so far as it applies to capital ships and cer- on France's naval force. "Minister of Marine
tain restrictions on submarine warfare. Treaty Charles Dumont has indicated clearly," it was said,
provisions for the limitation of cruisers, submarines "that if the present building program were continued
and auxiliary vessels were accepted only by Great France would have to lay up some of her older
Britain, the United States and Japan. At the in- vessels because of insufficiency of personnel. The
stance of the British Government the famous "esca- margin of 244,000 tons laid down by Jacques Louis
lator" clause was inserted in the London treaty. Dumesnil, then Minister of Marine, at the London
This provides for expansion of the building pro- conference was based on the calculations that France
grams of•the three chief signatories after one year's should have parity with Italy in the Mediterranean,
notification in the event that any of these signa- parity with Germany in the North Sea, and 100,000
tories consider their security menaced by excessive tons for the defense of the colonies. These calculabuilding of other naval powers. There appeared to tions left out of account the difficulty of recruiting
be more than a little possibility of application of and training sailors for a fleet of this size, and it
the clause by the British Government, which found has been with this very important factor in mind
its standard of a navy equal to any two continental that Mr. Craigie and M. Massigli have revised M.
fleets threatened by the combined building programs Dumesnil's figures."
The importace of the developments was emphaof France and Italy. Efforts to secure reductions
of the expansion plans of the two Latin powers have sized Monday, When the British Foreign Secretary,
accordingly been in almost continual progress since Arthur Henderson, requested an immediate conferthe close of the London conference last April. ence with Foreign Minister Aristide Briand of
United States Ambassador Hugh S. Gibson discussed France. Mr. Henderson, together with A. V. Alexthis matter at Paris and Rome late last year, and ander, First Lord of the Admiralty, Mr. Craigie, and
Robert L. Craigie of the British Foreign Office also two additional naval experts, arrived at Paris late
visited the two capitals. Mr. Craigie resumed the Monday, where they promptly proceeded to the Quai
conversations at the Quai d'Orsay some weeks ago, d'Orsay. "There is no doubt," a Paris report to the
and there is now some indication that the efforts "Times" remarked, "that the visit must be interpreted as significant of British dissatisfaction with
will prove successful.
It was reported in Paris last Saturday by the well- the French claim, even as it has been reduced in the
informed Pertinax, writing in the "Echo de Paris," Craigie-Massigli conversations. It is understood
that a compromise in the naval impasse had been that there is still a difference of 50,000 tons between
reached as a result of the discussions between Mr. the global figure which the French will accept and
Craigie and Rene Massigli of the Quai d'Orsay. A the figure at which the British Admiralty estimates
dispatch to the New York "Times" recording this dis- construction should be halted if there is to be any
closure stated that France had agreed to reduction possibility of keeping within the London treaty
of her submarine program, while a further conces- figures." English calculations were upset particusion had been made which opened the way to settle- larly, it was indicated, by a French proposal to
ment of the Franco-Italian differences. France, it build a battle cruiser of 23,333 tons as a reply to
was said,had consented to a reduction of 40,000 tons German construction of the 10,000-ton "Ersatzin the aggregate figure announced as final by French Preussen." After the meeting at the Quai d'Orsay
negotiators at the London conference, and had been a formal statement was issued to the effect that the
induced, moreover,to accept a superiority of 150,000 conversations were to continue. In London the distons over Italy instead of the 244,000 tons demanded cussions were regarded as giving ground for hope.
at London. "Franco-Italian accord, which is com- but not for certainty, that a Franco-Italian naval
plementary to Franco-British accord, concerns only agreement will be reached and that use of the "escathe units to be constructed up to 1936, and entails lator" clause in the London treaty will be avoided.
no definite fixation of coefficients," the French com- Questioners in the House of Commons were merely
mentator remarked. "The British estimate the informed that the British officials desired to conFrench navy at present, considering only modern tinue their conversations with the French Governunits, is about 150,000 tons more than the Italian ment on naval matters.
navy. The building programs of the French and
The British and French negotiators reached, TuesItalian navy yards will be so regulated as to pre- day, what was described as agreement in principle
serve identical strength as compared with what now on the naval question. Official statements indicated
exists." In view of these comments, it was officially that the conversations had reached a stage which
slated by both the British and French Foreign permitted Mr.Henderson and Mr. Alexander to leave
Offices that no actual solution of the naval problem for Rome in order to Rnter upon similar conversahad yet been reached. It was remarked in London tions with the Italian Government. "While the conthat Mr. Craigie had no plenipotentiary powers and versations have taken place in the most friendly
that any plan formulated must be referred to London atmosphere, it is of course impossible to measure
what progress has been made in the settlement of
for consideration.
Official warnings were again given in Paris last this question until the Italian Government has been
Sunday that the figures mentioned in published brought into the consultation," the announcement
accounts do not exactly represent the situation. said. It was also remarked that the Governments of
They were discounted, however, a dispatch to the the United States of America and Japan were being
New York "Times" said, since they were considered kept fully informed. Close secrecy was observed
in reality more designed to keep the ground clear for regarding the terms of the tentative agreement
further negotiations. It was remarked, in addition, reached in Paris, but it was considered by observers
that some opposition to the French concessions had that the figure for global tonnage accepted by the
arisen in the Paris Cabinet. Such opposition M. French is approximately 630,000. and that the
Briand was prepared to meet, the dispatch said, on margin of superiority over Italy will be about
FEB. 28 1931.]
FINANCIAL CHRONICLE
160,000 tons. The British negotiators arrived at
Rome late Wednesday and were greeted by Foreign
Minister Dino Grand!, Minister of the Navy Giuseppi
Sirianni, and the British Ambassador Sir Ronald
Graham. Discussions between the British and
Italian officials was started Thursday, and although
no immediate information was available regarding
the trend of the conversations, Rome reports indicated that they were regarded very favorably. "Considerable confidence" that Italy will find the proposals acceptable was reported in an Associated
Press dispatch from Rome. "It was pointed out," the
dispatch added, "that both Mr. Henderson and Mr.
Alexander were familiar with the Italian demands
and would hardly have come on to Rome after their
Paris negotiations unless they felt they could satisfy the Rome Government." Further discussions in
which Premier Mussolini joined took place at Rome
yesterday,with the result uncertain up to a late hour,
1473
will keep in close touch on questions arising out of
the report of the League of Nations Gold Delegation,
and will consider all possibilities of expanding lending operations abroad, provided the borrowers will
take necessary measures for the restoration of
confidence.
A suggestion for a new international bank, designed in part to supplement the activities of the
Bank for International Settlements, wns made by
Governor Montagu Norman of the Bank of England,
at the last monthly meeting of B. I. S. directors.
Consideration is currently being given the suggestion by officials of the Basle institution, who have
approached the directors of the Bank of France on
the matter, a Paris dispatch of Wednesday to the
New York "Herald Tribune" states. The new institution would also be located at Basle, it is indicated,
and it might operate under the control of the
B. I. S. Capital for the "International Credit
Bank," as the new institution might be called, would
be subscribed by private banks throughout the
world. The aim of the bank would be to transform
short-term funds, of which there is at present a vast
supply available in all large financial centers, into
long-term credits or bonds. The B. I. S., it is
pointed out, cannot make advances on a long-term
basis and the new bank would operate as a supplementary institution in this field. Since the American and French markets are at present possessed
of what appear to be the largest supplies of capital
funds, it is assumed the new bank might appeal
especially to bankers and investors in these countries. There is no indication of any direct consultation, as yet, with American bankers. In Paris the
technical difficulties of organizing the institution
are put forward as an argument against it, the
"Herald Tribune" report states. Not less than two
years would be required to build up the institution,
it is said. Study is being given the project by the
experts of the Bank of France, however, and further
discussion of the suggestion is looked for at the
March meeting of B. I. S. directors in Basle.
Closer co-operation between the British and
French Treasuries will result from discussions conducted in Paris during the past two months by expert representatives of the two finance offices.
Statements made public Tuesday by the Chancellor
of the Exchequer in London and by the Ministry
of Finance in Paris indicate that the conversations
"have enabled contact to be established on various
questions which affect deeply the financial and economic interests of the two countries." It was agreed
that this contact should be maintained with a view
to further exchanges of views should occasion arise.
The two official statements issued Tuesday disclose
only in a general sense the results of the protracted
discussions. The first intimations of the meetings
between the British and French Treasury experts
were given early in January, when it was reported
that Sir Frederick Leith Ross, an official of the
British Treasury, and M. Escallier, director of the
French Ministry of Finance, tad begun an unofficial exchange of views on questions of mutual
interest. In view of the heavy flow of gold from
London to Paris then in progress, it was confidently
assumed that the discussions would relate chiefly
to plans for stemming the flow of the metal.
.The all-important questions of the present worldThat the exceptional gold movements between wide business depressi
on and the existing distribuLondon and Paris played a prominent part in the tion of gold
were discussed in Paris last Saturday
conversations was confirmed Tuesday, but it was at a meeting
of international bankers in the headalso stated that no attempt was made to establish quarters
of the International Chamber of Commerce.
any definite intergovernmental agreement on Recomme
ndations adopted by the bankers as a
specific points. "Chancellor Snowden's statement result
of the exchange of views related mainly to
confirmed," a London report to the New York methods
for smoothing the flow of capital from mar"Times" said,"that the French authorities in no way kets
where it is abundant to others where it is
welcome these abnormal gold movements and have needed.
"Unanimous agreement was reached conalways been anxious so far as it lies in their power cerning
certain definite recommendations," a Paris
to avoid any measures tending to bring them about. report
to the New York "Times" stated, "but of
The French Treasury, while not considering that even
wider significance was the discussion of the
the methods of managing public funds in France can problem
of gold and its distribution and the general
have had the influence on gold movements which conclusi
ons to which the discussion led." Most
is sometimes attributed to them, has nevertheless speakers contende
d that the present gold distribureadily stated its intention of continuing to take tion should
be regarded rather as the effect of ecoaccount in this respect—as far as is consistent with nomic condition arising from
the World War than
s
its own requirements of the repercussion which the as a cause of the current business depression. "If
operations of public accounts might have on the the proper economic equilibr
ium between nations
monetary market." In the communication of the can be established, it was the convictio
n of the
French Ministry of Finance, a dispatch to the New majority of bankers that there would automati
cally
York "Herald Tribune" said, it was announced that follow a tendency toward righting the present
disthe French Treasury would do everything in its tribution of gold," the "Times" dispatch said.
power to limit excessive imports of gold into France.
"In this connection special emphasis was laid on
The two statements indicated that the Treasuries the importance of free international
movements of
1474
FINANCIAL CHRONICLE
(VOL. 122.
The net result was the formal signing by 16 participants of a resolution favoring the disposal of the
1930 stocks of Danubian grain. This sole concrete
accomplishment was in the nature of a "moral gesture," a "Times" dispatch from Paris stated. Signers of the agreement were France, Germany, Austria,
Bulgaria, Estonia, Finland, Greece, Hungary, Italy,
Latvia, Lithuania, Poland, Rumania, Switzerland,
Czechoslovakia, and Yugoslavia. It was considered
significant that the delegates of Britain, the Netherlands, Belgium, Denmark, Spain, the Irish Free
State, and Sweden declined to sign on the ground
that their respective Governments must first be consulted. Delegates of 11 European countries attended
the second conference at Paris, which began Thursday. The Danubian countries proposed that the
European nations grant preferential customs duties
and preferential railroad rates for their wheat, but
these suggestions were opposed by Britain and
Spain. All delegates agreed on the principle of
Two subcommissions of the European Federation maintaining a united front at the world wheat conCommission of the League of Nations met in formal ference to be held in Rome.
sessions at Paris this week to consider ways and
A further important decision relating to commerce
means of fostering the Briand scheme for a united
Europe through closer intergration of the agricul- with Soviet Russia was announced Tuesday by Secretural regions of Eastern Europe with the industrial tary of the Treasury Mellon, who found after investicountries of Western and Central Europe. The gation that there is no "dumping" of Russian manproblem of the European grain surplus was dis- ganese ore now taking place in this country. Secrecussed by one of these commissions, which met Mon- tary Mellon declined, accordingly, to invoke the
day, Tuesday and Wednesday, while the second com- Anti-Dumping Act of 1921 and exclude Russian
mission started discussions Thursday of the pro- manganese from entry at American ports. In a rulposal for organizing an international agricultural ing handed down earlier this month, Secretary Melcredit bank to function as an intermediary between lon found that convict labor is used in the production
the agriculturists of Eastern Europe and the finan- of lumber and pulpwood in four areas of northern
imcial markets. Both efforts are a direct result of Russia, and an embargo was placed on related
the
by
issued
manganese
on
the series of discussions started by Foreign Minister ports. A notification
conothers
and
Customs
of
Collectors
Assembly
meet- Treasury to
Briand of France at the 1929 League
American
ing, when the project for a political and economic cerned stated: "Upon complaint of the
on
investigati
,
Association
Producers'
In
broached
officially.
first
Manganese
union of Europe was
ore
manganese
that
allegations
of
s,
made
repdiplomatist
has
been
European
of
meetings
subsequent
resentatives of the agricultural States of Eastern produced in the Soviet Republic of Georgia, U. A.
Europe have repeatedly insisted that the principle S. R., has been and is being dumped on the United
enunciated by the French statesmen might be ap- States market, contrary to the provisions of the
plied with great practical benefit in the immediate Anti-Dumping Act of 1921. After an extended indisposition of the surplus grain of the Balkan States vestigation and careful consideration of all the
and the lifting of the agricultural depression in those evidence presented by and on behalf of the parties
regions. These suggestions were viewed with some in interest, I have reached the conclusion that a
favor, and arrangements were made for further ex- finding of dumping with respect to managanese ore
amination of the proposals in the meetings held imported from the Soviet Republic of Georgia, U. S.
S. R.,is not justified and must decline to issue such
this week.
Delegates of 24 Europcan nations gathered at a finding."
Paris Monday for the first of the two meetings.
With the threat to the Spanish monarchy defiThey were greeted by M. Briand, who declared that
test
the
solidarity nitely averted and a new Government firmly in
the conference "would put to a.
"
A. Fran- power, conditions in Spain relapsed this week to
confidence.
in which we have placed our
of
State
for those prevalent before the Berenguer Cabinet was
-Secretary
Under
cois-Poncet, French
of
Chairman
the overturned. Instead of elections in March for a
elected
National Economy, was
consider
to
practical
began
national parliament designed to function under the
meeting, which promptly
surplus
of
grain
the
the
Constitution of 1876,it is now indicated that municiof
steps for disposal
provincial
Danubian countries. An accord was sought between pal elections will be held April 12, while
July or
in
will
follow
the grain exporting and importing countries repre- and parliamentary balloting
request
the
t
at
formed
sented in the conference, but no great measure of August. The Governmen
Aznar
Bautista
Juan
Admiral
ed
in
the of King Alfonso by
success was achieved. Russia, unrepresent
proposals
of
the
week
study
this
as
a
grain
began
as
importance
Premier
gathering despite her growing
for restoration
exporter, was not mentioned, dispatches said. It for revision of the penal code and
. Announcewas established that the Danubian wheat surplus of normal conditions in the universities
elecmunicipal
now available amounts to not more than 10,000,000 ment was made of the forthcoming
under
are
plans
metric quintals, and some feeling was provoked tions,and it was also indicated that
reforms preparawhen it appeared that the sellers desired to dispose consideration for administrative
No diselections.
national
and
district
tory to the
of their surplus at levels above the world price.
capital and the necessity for encouraging such movements, always provided the capital invested is to be
used for constructive purposes. To-day's debate was
a reflection, therefore, of the theory that the gold
problem will solve itself as soon as long-term credits
start flowing to those nations badly in need of such
help."
These conclusions were embodied in a resolution which also recommended removal of obstructions on the flow of capital from market to market.
It was also recommended that international financial institutions of a private character be organized
with a view to the extension of medium and longterm credits. These recommendations are to be
placed before the Chamber's sixth world congress
in Washington next May. The American delegation
at the Paris meeting included Nelson Dean Jay of
J. P. Morgan & Co., and C. F. Weed of the First
National Bank of Boston.
FEB. 28 1931.]
FINANCIAL CHRONICLE
orders were reported anywhere in Spain, although
consideration is being given by Socialist leaders and
heads of the labor unions to the calling of a general
strike as a prelude to a revolutionary movement.
In interviews granted Madrid correspondents of the
New York "Times" and "Herald Tribune," Monday,
King Alfonso displayed his customary nonchalance
and deprecated reports of revolution in Spain. On
the other hand, the powerful Constitutionalist party
reiterated Tuesday its intention of abstaining from
participation in the provincial and national elections. In this attitude, a "Times" dispatch said,
the party will probably have the support of the Republicans and Socialists and other Left groups. It
was the refusal of such groups to participate in the
March elections scheduled by the Berenguer Government that caused the recent change in the Cabinet
and the sequence of events which appeared to place
the monarchy in danger.
A revolutionary movement in Peru that gradually
gained headway and has now spread over much of
the country was started in Lima, the capital, late
last week by adherents of former President Augusto
B. Leguia, who was deposed on Aug.25 1930. Severe
fighting started in Lima early Feb.20 and continued
most of the day. Sixty-one persons were killed, including one American, Reginald A. Skidmore, of
Bethlehem, Pa. Mr. Skidmore was the victim of a
stray bullet. Of the other casualties, 40 occurred
among loyal forces and 20 among the rebels. The
attempt to overthrow the provisional government of
Col. Luis M. Sanchez Cerro by a surprise attack in
the capital was defeated and the rebels fled from
Lima to Callao, the nearby seaport. A state of siege
was promptly proclaimed by Provisional President
Sanchez Cerro, and the rebel troops at Callao surrendered after a short engagement. Although early
reports indicated that the revolt was confined to
Lima and Callao, dispatches from Santiago, Chile,
and La Paz, Bolivia, soon showed that the movement
was a well-planned and general one, involving military garrisons in a number of towns of Southern
Peru. The Arequipa garrison, which took the lead
in the revolt of last August, was on the side of the
rebels, Santiago reports said, while La Paz dispatches indicated that the Juliaca garrison also had
joined the revolt. The cruisers Bolognesi and Grau,
two of the principal vessels in the Peruvian fleet,
also were opposed to the provisional regime of Col.
Sanchez Cerro.
An official statement, issued in Lima, declared
that the movement was headed by officers seeking
a return to power of Augusto B. Leguia, who is now
in the national penitentiary charged with the manipulation of public funds to his own gain. A strict
censorship was imposed, but the Government
admitted in a further statement that the city of
Arequipa in the south had been captured by rebellious troops. An effort to meet the presumed views
of the rebels was made Monday by Col. Sanchez
Cerro, who cancelled decrees calling for presidential
elections at an indefinite time in the future, and
withdrew his own candidacy. These efforts were
apparently unsuccessful, however, as it was decided
Wednesday to start an active campaign against the
southern rebels. The latter set up their own Peruvian Government at Arequipa under the name of
the "Southern Junta." No definite information was
available regarding the leadership of the rebels, but
1475
it was believed that Colonel Aurelio Garcia Godos
was the head of the movement at Arequipa.
No changes occurred this week in the discount
rates of any of the European central banks. Rates
are 67
0 in Spain; at 5/
1
2% in Austria, Hungary, and
Italy; at 570 in Germany; at 470 in Norway and Ireland; at 31/27
0 in Denmark; at 3% in England and
Sweden; at 2/
1
2% in Holland and Belgium, and at
270 in France and Switzerland. In the London open
market discounts for short bills yesterday were
2 11/16@23
/
47
0 against 2%@2 11/16% on Friday of
last week, and 2 11/16@23
/
470 for three months bills
against 2%@2 11/16% on Friday of last week.
Money on call in London yesterday was 178%. At
Paris the open market rate has fallen from 17
/8% to
13
/
47
0,but in Switzerland remains unchanged nt 1r1 .
The Bank of England statement for the week ended
Feb. 25 shows a gain of £385,887 in bullion, but as
this was attended by an expansion of £3,535,000 in
circulation, reserves fell off £3,149,000. The Bank
now holds £141,592,550 of gold in comparison with
£151,979,238 a year ago. Public deposits showed an
increase of £1,054,000 and other deposits, which consists of bankers' accounts and other accounts, a decrease of £1,905,702. Bankers' accounts decreased
£2,073,855 and other accounts increased £168,153.
The reserve ratio is now 49.65%, a week ago it was
52.14%, a year ago it was 65.86%. Loans on government securities rose £600,000 and those on other
securities £1,764,252. The latter consists of "discounts and advances" which fell off £1,170,993 and
"securities" which expanded £2,935,245. The rate
of discount remains 3%. Below we furnish a comparison of the different items for five years:
BANK OF ENGLAND'S COMPARATIVE STATEMENT.
1931
Feb. 25.
Circulation_a
347,664,000
Public deposits
18,221,000
Other deposits
92,383,915
Bankers' accounts 59,071,885
Other accounts
33,312,230
Gov't 5ecur1ties
36,735.952
Other securities
36,167,667
Disc. & advances_ 8,517,848
Securities
27.649,821
Ree've notes & coin_ 53,927,000
Coin and buillon_141,592,550
Proportion of reserve
to liabilities
49.65%
Bank rate
3%
1930
Feb. 26.
1929
Feb. 27.
348,812,165
11,987.053
86,945,285
50,713,918
36,231,367
34,441,583
17,585.214
4,716,355
12.868,859
85,167,073
151,979,238
352,253,215
13, 68,893
93,701.991
57,040,301
38,881,690
42.976,855
23,947,497
8,353,539
15,593.988
59,002.302
151,255,517
65.86%
454%
54.70%
554%
1928
Feb. 29.
1927
Mardi 2.
135,349.460 137,588,645
10.139,635 9.643,302
98,507,271 109,530,114
30,683,127 32,267,560
54.587,098 72.911,808
41.650,448 32,276,429
150,249,908 150,115,074
38 5-16%
434%
27%
5%
a On Nov.29 1928 the fiduciary currency was amalgamated with Bank of England
note issues, adding at that time £234,199,000 to the amount of Bank of England
notes outstanding.
The French Bank statement for the week ended
Feb. 21, reveals a gain in gold holdings of 119,735,406 francs. The total of gold now stands at 55,857,792,419 francs, in comparison with 42,960,342,741 francs the same time last year and 34,037,604,216 francs the year before. Credit balances abroad
and bills bought abroad show increases of 8,000,000
francs and 2,000,000 francs respectively. Notes in
circulation contracted 368,000,000 francs, reducing
the total of notes outstanding to 77,351,473,510
francs. Circulation a year ago aggregated 68,872,261,450 francs and two years ago 62,505,667,600
francs. An increase appears in French commercial
bills discounted of 198,000,000 francs and in creditor
current accounts of 574,000,000 francs, while advances against securities fell off 50,000,000 francs.
A comparison of the different items for the past three
years is furnished below:
1476
FINANCIAL CHRONICLE
BANK OF FRANCE'S COMPARATIVE STATEMENT.
Status as of
Changes
Feb. 21 1931, Feb. 22 1930. Feb. 23 1929.
for 1Feek.
Francs.
Francs.
Francs.
Francs.
Gold holdings__ Inc. 119,735,406 55,857,792,419 42,960,342,741 34,037.604.216
11,538,870,769
6,967,760,744
Credit bale. abed_Inc. 8,000,000 7,012,603,982
French commercial
bills discounted_ Inc. 198,000,000 7,428.235,037 6,547,081.073 5,238,626.954
Bills bought abr'd.Inc. 2,000,000 19,272,873.142 18,721,898,037 18.283,146.350
Adv.age.securs_ Dec._
50,000,000 2.861,534.732 2.488,989,652 2.263.007.879
Note circulation Dec.368,000,000 77,351.473,510 68,872.261.450 62,505,667.600
Cred. curr. acc'ts_Inc. 574,000,000 25,477,999,950 18,030,575,559 19,474,575,215
The Bank of Germany in its statement for the
third week of February shows a decline in note circulation of 192,851,000 marks. Owing to this loss the
item now stands at 3,704,405,000 marks, as compared with 4,004,603,000 marks last year and 3,902,094,000 marks two years ago. Other daily maturing obligations increased 151,155,000 marks and
other liabilities decreased 233,000 marks. The asset
side of the account reveals increases in gold and
bullion of 11,337,000 marks, in silver and other coin
of 10,114,000 marks,in advances of 12,974,000 marks
and in other assets of 9,280,000 marks. Reserve in
foreign currency and bills of exchange and checks fell
off 5,780,000 marks and 83,470,000 marks while the
items of deposits abroad and investments remain unchanged. The Bank's bullion now aggregates 2,265,626,000 marks, as compared with 2,410,200,000
marks a year ago and 2,728,962,000 marks in 1929.
Below we furnish a comparison of the various items
for the past three years:
REICHSBANICS COMPARATIVE STATEMENT.
Changes
Feb. 23 1931. Feb. 22 1930. Feb. 23 1929.
for Week.
Reicksmarks, Reichsmarks. Reichsmark:. Reichsmarks.
Assets—
Gold and bullion —Ina 11,337,000 2,265,626,000 2,410.200,000 2,728,962,000
85.626.000
Unchanged 207,638,000 149.788,000
Of which depots.abr'cL
99,134.000
Reeve In ror'n curr___Dec. 5,780,000 175,402.000 393,793,000
1,471.350,000
1,620.478,000
1,525.632.000
83,470,000
Dec.
checks
&
exch.
Bills of
Silver and other coln..Inc. 10,114.000 202.271,000 164.377.000 132,175,000
28,815,000
20,948.000
21,292,000
Notes on oth.Ger.bke_Ino. 3,616,000
38.467,000
44.694,000
85,325,000
------Inc. 12.974,000
Advances_ _
93,170,000
93,277,000
102,322,000
Unchanged
Investments
Inc. 9.280.000 555,887,016 511,850,000 481.489,000
Other assets
Notes in circulation Dec. 192,851,000 3,704,405,000 4,004,603,000 3,902,094.000
Oth.dally matur.obliginc. 151,155,000 401.325,000 615,809,000 572,696.000
233,000 319,550,000 160,278,000 156,346,000
Dec.
Other liabilities
[You 112.
ing renewals as well as new loans. Time money has
been practically without movement,due to more satisfactory accommodation being obtainable in other
branches of the money market. Quotations for 30day accommodation have been entirely eliminated.
2@
1
Quotations for other dates have been each day 1/
13
0 for 60 days, 134@270 for 90-day accommoda47
tions, 2@21-47
0 for four months, and 21/270 for five
and six months. The market for prime commercial
paper was unusually active this week, and a much
larger volume of business could have been done if
the paper could have been obtained. Rates for
choice names of four to six months' maturity are
2%,while names less well known are 234@370.
1
2/
The market for prime bank acceptances has been
very dull this week. The demand has been small,
and very little satisfactory paper is available at this
time. Rates remain unchanged. The Reserve Banks
further increased their holdings of acceptances this
week from $93,995,000 to $106,317,000. Their holdings of acceptances for foreign correspondents increased from $448,637,000 to $453,814,000. The
posted rates of the American Acceptance Council
now are 1%7
0 bid and 1/
2% asked for bills run1
0 bid
ning 30 days, and also for 60 and 90 days; 13
47
and 1%7
0 asked for 120 days, and 17870 bid and
13470 asked for 150 days and 180 days. The Acceptance Council no longer gives the rates for call loans
secured by acceptances. Open market rates for
acceptances have also remained unchanged, as
follows:
SPOT DELIVERY.
--120 Days-—150 Days—
—180 Days—
Bid. Asked.
Bid. Asked.
Bid. Asked.
II(
Prime eligible bills
III
134
111
134
1%
—30 Days-—60 Days—
—90 Days—
Bid. Asked.
Bid. Asked.
Bid. Asked,
134
134
Prime eligible bills
134
1%
III
1%
FOR DELIVERY WITHIN THIRTY DAYS.
big
%
I
Eligible member banks
134 biel
Eligible non-member banka
There have been no changes this week in the rediscount rates of the Federal Reserve Banks. The
following is the schedule of rates now in effect for
Money rates in the New York market showed no the various classes of paper at the Reserve banks:
change whatever in the short business week now DISCOUNT RATES OF FEDERAL RESERVE BANKS ON ALL CLASSES
AND MATURITIES OF ELIGIBLE PAPER.
ending. Levels prevalent in previous sessions were
Dale
Rate in Rffect
Preston@
carried over into the dealings this week and mainon Feb. 27.
Federal Reserve Batik.
Rats.
Satabltshed.
tained unchanged throughout. Money dealers are Boston
Jan. 2 1931
11
234
Nei/ York
Dec. 24 1930
2
234
inclined to look for slight firming of the market Philadelphia
July 3 1930
314
4
De,. 29 1930
:11evaland
3
334
month-end
of
settlements, (Hob mond
next week, in reflection
4
July 18 1930
834
!manta
3%
8
Jan. 10 1931
while in mid-March a greater degree of tightness is ;110eago
814
3
Jan. 10 1931
It. Louis
8
Jan. 8 1931
334
4
expected owing to the heavy turnover incidental to Ifinneapolis
Sept. 12 1930
334
Kgggag city
Aug. 16 1930
4
33.4
Dallas
4
334
Sept. 9 1930
Treasury financing and tax payments. Other than tan
314'
a
Jan." 0 1031
Franelsco
at
the
seen
are
reasons
moment
no
influences,
these
for any substantial change in monetary conditions.
Sterling exchange while on average fractionally
The official call loan rate on the Stock Exchange firmer than last week, is dull and irregular, displaywas 11/2% this week for all transactions. Funds ing an easy tone hardly in keeping with what might
overflowed in all sessions into the "Street" market, be expected of the pound at this time, when under
where a quotation of 1% was reported as the basis normal conditions exchange should favor London as a
for transactions every day. Brokers' loans against seasonal matter. The range this week has been from
stock and bond collateral registered their third 4.85% to 4.85 13-16 for bankers' sight bills, comweekly advance in the compilation of the Federal pared with 4.853.1 to 4.85% last week. The range
Reserve Bank of New York, issued Thursday. The for cable transfers has been from 4.85% to 4.85 15-16,
gain for the week to Wednesday night was $26,- compared with 4.853/ to 4.85 13-16 a week ago. On
000,000. Gold movements reported for the same Monday, Washington's birthday, there was no marperiod consisted of imports of $160,000. There were ket in New York. 04Tuesday and'%,Wednesday
no exports and no net change in the stock of metal sterling gave indications of an upward trend as a
result of the firming of the London money market.
held earmarked for foreign account.
It was quite evident that this influence was artificial
Dealing in detail with call loan rates on the Stock and induced by the London banking authorities in
Exchange from day to day, the rate has again been order to strengthen the position of sterling. On
11/
2% each and every day of the week, this includ- Saturday last and on Monday there was some evt-
FEB. 28 19311
FINANCIAL CHRONICLE
1477
dence of demand, but for the rest of the week the reported the receipt of £500,000 in sovereigns from
market was dull and irregular. Sterling is also in- abroad and the export of £12,000 in sovereigns. On
clined to go off with respect to the French franc. Tuesday the Bank sold £54,013 in gold bars and
According to Paris dispatches received on Wednesday exported £25,000 in sovereigns. In the London open
interest on French national defense bonds was reduced market on Tuesday only £15,000 bar gold was availto 23/2% from 3%. This marks another step toward able, all of which was taken by the trade, which is
checking the inflow of gold into France through co- believed to have also taken some metal from the
operation of French and British authorities and is in Bank of England. On Monday about £500,000 gold
aceord with the recent reduction in the rate of ad- was offered by an undisclosed seller, the whole of
vances against such bonds to 13/27o.
which was taken for shipment to France at the price
On Saturday the London check rate on Paris rose of 84s. 11d. Next week there will be available in the
to 123.97 but the forward 3-months rate was quoted open market £250,000 in sovereigns and £1,200,000
at a discount of 25 centimes and thus below the gold in bars and on the following Tuesday there will be
point. The communique issued at the third con- available £860,000 in bars. On Wednesday the Bank
ference of the Anglo-French Treasury officials which of England sold £22,584 in gold bars and exported
emphasized the general desire to work together £12,000 in sovereigns. On Thursday the Bank sold
caused a good impression in banking circles in London £1,748 in gold bars and exported £17,000 in soverand on the Continent, although it implied that no eigns. On Friday the Bank bought £7 gold coin,
new measures are contemplated beyond the con- sold £1,737 gold bars and exported £2,000 sovereigns.
tinuance of the policy of keeping money rates higher
At the Port of New York the gold movement for
in London than in Paris. As stated, the London bill the week ended Feb. 25, as reported by the Federal
market is firmer countering advances in New York. Reserve Bank of New York, consisted of imports
Three-months bills in London are now quoted at of 8160,000 chiefly from Latin America. There were
2% to 2 11-16%, compared with 1%@13/2% for cor- no gold exports and no change in gold earmarked for
responding maturity here. Six-months bills in Lon- foreign account. In tabular form the gold movement
don are as high as 29@23/s%. The rise in bill rates at the Port of New York for the week ended Feb. 25,
in London is causing considerable discussion with as reported by the Federal Reserve Bank
of New
respect to the Bank of England's rate. The forcing York, was as follows:
up of bill rates is due, it is believed, altogether to GOLD MOVEMENT AT NEW YORK,FEB. 19-FEB.25,
INCLUSIVE.
moral suasion brought to bear on the London market
Imports.
Exports.
$160,000
chiefly
America!
from
Latin
None.
b.y the Bank of England and current rates are not
Net Change in Gold Earmarked for Foreign -Account.
the result of increased demand for commercial credit.
None.
If the Bank of England were to increase its redisThe Reserve Bank reported that during the week
count rate at this time or in the immediate future $1,609,000 of gold was received at San Francisco
its sole reason would be to protect its gold holdings from China.
from further decline. A higher Bank of England
Canadian exchange continues firm. The ruling
rate, it is thought, would increase the value of rate for Montreal funds this week was around
1-64
sterling and might even bring about a return flow of of 1% discount, although Montreal funds
were
metal to London.
quoted at par on Saturday.
Part of the unseasonable weakness in sterling must
Referring to day-to-day rates,sterling exchange on
be attributed to political uncertainties as in a recent Saturday last was in demand and fairly firm. Bankspeech Premier Ramsay MacDonald deprecated the ers' sight was 4.85%@4.85 17-32;
cable transfers
"flight of the pound" for fear of heavier taxation on 4.85%@4.853
%. On Monday, Washington's Birthcapital. London bill rates are now higher than at day, there was no market in
New York. On Tuesany time since last March 19. Proof that sterling day sterling was fractionally higher.
The range was
has not received customary support from trade during 4.85%@4.853
4 for bankers' sight bills and 4.85M@
the past year is furnished by a report of the British 4.85 29-32 for cable transfers.
On Wednesday exBoard of Trade which shows that the national balance change was steady.
The range was 4.85 11-16@
of trade, visible and invisible, for 1930 discloses a 4.85 13-16 for bankers' sight bills
and 4.85%@
surplus of only £39,000,000, compared with £138,- 4.85 15-16 for cable
transfers. On Thursday the
000,000 in 1929. Most of this decline is in invisible market eased off. Bankers' sight
was 4.85 19-32@
items. Great Britain normally runs an import 4.85% cable transfers,
4.85%
3 @4.85 13-16. On Fribalance with visible trade. This amounted to £387,- day sterling was steady, the range was 4.853@
593,000 in 1930, compared with £385,096,000 in 4.85 11-16 for bankers' sight and 4.85%(4)4.85
1
13-16
1929, but poor business in the past years as reflected for cable transfers. Closing quotations on Friday
in lower trade totals caused large reductions in the were 4.85% for demand and 4.85 13-16 for cable
principal items contributing to the invisible balance. transfers. Commercial sight bills finished at 4.853.;
Shipping income declined £25,000,000 and overseas sixty-day bills at 4.833/s; ninety-day bills at 4.82 1-16
investment returns £35,000,000. As matters now documents for payment (60 days) at 4.833/s, and
stand, sterling appears to be facing another critical seven day grain bills at 4.853'. Cotton and grain
period in the immediate future. Nevertheless, it is for payment closed at 4.853/2.
generally believed in banking circles that seasonal
influences should soon be sufficient to furnish necesExchange on the Continental countries displays a
sary strength. One disturbing factor immediately mixed trend in keeping with the movement of sterling
ahead is the British budget at the end of March.
exchange and the uncertainties of international trade
This week the Bank of England shows an increase and world commodity prices. French francs are on
in gold holdings of £385,887. On Saturday the Bank the whole steady. Rumors were current in the
of England sold £24,479 in gold bars and exported market early in the week that the Bank of France
£4,000 in sovereigns. On Monday the Bank bought contemplated lowering its rediscount rate from the
£152 in gold bars, sold £6,991 in go,ld bars, and present 2% level. If such a move were to be made it
1478
FINANCIAL CHRONICLE
(vol.. 132.
could only be accounted for on the ground that for bankers' sight bills and at 5.23 11-16 for cable
%. Austrian
French banking authorities were taking the step as transfers, against 5.23 3-16 and 5.233
exchange
14.043.;
against
14.05,
Bank
at
closed
schillings
the
with
on
co-operati
further
a measure toward
Bucharon
2.95%;
against
2.96,
on
at
akia
above
Czechoslov
exchange
sterling
g
in
England
maintainin
of
11.20,
at
Poland
the export point for gold from London to Paris. est at 0.5931, against 0.5931; on
against
2.51%,
at
Finalnd
However, dispatches from Paris on Wednesday were against 11.20, and on
4for bankers'
positive in asserting that the rumor of a reduction 2.51%. Greek exchange closed at 1.291
against
transfers,
cable
for
there.
sight bills and at 1.293
in the French bank rate received no credence
in
increase
9-16.
and
1.29
1.29
5-16
This week the Bank of France shows an
gold holdings of 119,735,000 francs, the total standExchange on the countries neutral during the war
ing at the record high level of 55,857,000,000 francs,
year
a
francs
a variety of trends. The Scandinavian exshows
,000
42,960,000
which compares with
the
in
reported
are firm and tending upward, while Swiss
changes
francs
,000
29,935,000
with
and
ago
first statement of the Bank of France following francs and Holland guilders are inclined to softness
and Spanish pesetas have fluctuated rather widely.
stabilization of the franc in June 1928.
to
the The relative weakness in the Swiss and Dutch cur• German marks are steady, owing largely
foreign
of
rencies is attributed largely to the withdrawal of
fact ,that there are considerable offers
return
steady
the
to
German funds from these markets in recent weeks
and
credits to the Berlin market
increasing
with
and
there is a further movement of Holland funds to
domicile
of German funds to domestic
to
Ministry
Bruening
the
the
London and New York markets, which is a
of
ability
confidence in the
Reichstag
the
in
of softness in the guilder. The action of pesetas,
cause
elements
y
reactionar
control the
profinancial
ve
is
of
conservati
largely dominated by the political situacourse
strong,
a
follow
to
and
gram. The Reichsbank statement for the week tion in Spain. Peseta cable transfers fluctuated this
ended Feb. 23 shows an increase in gold holdings of week between a high of 10.713/ touched on Tuesday
11,337,000 marks, the total standing at 2,265,621,000 and a low of 10.28 at the opening of the market on
marks, which compares with 2,410,200,000 marks a Thursday. The higher quotations for the peseta
year ago. Money rates are easing off in Berlin and followed announcement that the Spanish finance
the market continues to expect a lowering of the Minister favors "stabilization after revalorization at
Reichsbank rediscount rate. Last week further ship- an appropriate level." After touching a high of
2 on Tuesday the unit slumped to 10.41 on
ments of Russian gold amounting to 3,800 kilograms 10.713/
arrived in Berlin. Its arrival was made the occasion Wednesday. No distinctly unfavorable news came
for calculation of the gold movement into and out from Spain and it is thought that the sharp drop
of Germany during recent years. These figures was only a technical reaction. However the rate deindicate that during the period from 1925 to 1930 clined further on Thursday to 10.28. On Tuesday
the gold import into Germany was 3,662,000,000 Senor Ricardo Rodriguez Pastor was appointed Govmarks and the gold export 1,572,000,000 marks. ernor of the Bank of Spain in place of Senor Bas.
Of the gold imported during the last two years, However Senor Pastor promptly refused the appoint70% came from England, 12% from France and ment and the Government continued Senor Bas in
12% from South America. No considerable im- office. No details as to the reason for the attempted
portation from the United States has been received change were announced and the foreign exchange
in Germany since 1928. Italian lire are steady, market became apprehensive of a possible dispute befluctuating within narrow limits. The movement tween the Bank of Spain and the Government over
of Italian exchange appears almost unrelated to the the stabilization program. The market has nothing
trends affecting other European rates. One of the by which it can be guided with respect to the Spanish
outstanding features of the Fascist regime in Italy program and is consequently affected by rumor as
is the program for making the country self-supporting well as fact.
Bankers' sight on Amsterdam finished on Friday
as far as possible. Cutting down import balances
of
payments
balance
more
the
bring
at
40.10, against 40.11 on Friday of last week; cable
to
would tend
which
lira,
the
aid
to
remains
4, and commercial
and
favor
at 40.11, against 40.113
transfers
Italy's
into
the
to
respect
with
dollar.
Swiss francs
discount
40.07.
sight
against
at
bills
40.07,
a
at
constantly
are
in
program
shown
bills and at
sight
economy
,
19.2434
for
bankers'
at
the
closed
of
results
The
recently published figures. Imports for 1930 amounted 19.25 for cable transfers, against 1927, and 19.28.
to 17,351,057,052 lire, compared with 21,664,759,598 Copenhagen checks finished at 26.74 and cable translire in 1929, and exports to 12,118,839,468 lire fers at 26.75, against 26.723/ and 26.7334. Checks
against 15,235,976,628. The import surplus there- on Sweden closed at 26.763/ and cable transfers at
2,against 26.753 and 26.763i, while checks on
fore amounted to 5,232,197,584 lire in 1930, com- 26.773/
a
1929,
of
in
decline
lire
Norway
970
finished at 26.743, and cable transfers at
pared with 6,428,782,
,
2
against 26.73 and 26.74. Spanish pesetas
26.753/
1,196,585,386 lire.
at
closed
Paris
123.96
on
for bankers' sight bills and at 10.45 for
closed
at
10.44
rate
The London check
with
on
123.89
compared with 10.53 and 10.54.
compared
cable
transfers,
week
on Friday of this
bills
on
sight
York
New
In
week.
Friday of • last
Exchange on the South American countries is unthe French centre finished at 3.91 13-16, against
respects from the past
3.91% a week ago; cable transfers at 3.91 15-16, changed in all important
pesos continue to
paper
Argentine
at
against 3.92, and commercial sight bills 3.91 9-16; several weeks.
seems almost
market
the
%
at
13.933
and
display firmness
against 3.91 9-16. Antwerp belgas finished
the
immediate
both
that
opinion
against
transfers,
the
of
ly
unanimous
for checks and at 13.943/i for cable
exchange
Argentine
for
prospects
for
Berlin
and
distant
quotations
more
13.933i and 13.94. Final
l circles in
Commercia
peso.
the
and
bills
for
are
sight
promising
bankers'
4 for
marks were 23.761
optimistic than in several months
23.7731 for cable transfers, in comparison with Argentina are more
of cereals, continued good
4 and 23.763. Italian lire closed at 5.233/i owing to heavy exports
23.751
FINANCIAL CHRONICLE
FEB. 28 1931.]
1479
The following table indicates the amount of bulcrop weather, and the rise in the exchange value of
the peso. Brazilian milreis continue to be nominally lion in the principal European banks:
quoted but at generally lower levels. General busiFebruary 26 1931.
February 27 1930.
ness in Brazil is not making a good showing in any. Banks of Gold.
Total.
Gold.
Silver.
Silver.
Total.
branch. Peruvian sols are reflecting the unsettled
141,592,5501151,979,238
141,592,550
151,979,238
political condition of that country. Argentine paper England
46,862,339 343,682.742
France a_ 446,862,339
d
343,682.742
Germany b 102,899.400 c994,600 103,804.000113,020,600
994,600114,015,200
pesos closed at 33 3-16 for checks, against 32 13-16 Spain
_ 96,614,000 28,280,000124.903,000 100,678,000 28,375,000129,053,000
57.308,000 56,126,
57.308,000
56.126,000
4for cable transfers, Italy
on Friday of last week and at 333
Netifland 37,172,000 2,424,00 39.596.000 36,418,000
36.418,000
40,424,000
33,666,000
Nat.
1.287,000
Belg_
40,424.000
34,953.000
against 32/. Brazilian milreis are nominally quoted Switzland 25,726,00
25,726,000 22,437,000
932,000 23,369,000
13.352,000 13,560,000
Sweden_ -- 13.352.000
13,560,000
8.35 for bankers' sight bills and 8.40 for cable trans- Denmark 9,552,000
9,552.000 9,574.000
382,000 9,956.000
8.134,000 8,146.000
8,148,000
Norway -- 8,134,000
exchange
closed
fers, against 8.55 and 8.60. Chilean
Total week 979,636,289 31.707,6001011343889889,287.580 31,970,600921,258,180
for
cable
transfers
12/
at 12 1-16 for checks and at
Prey. week 976,937.669 31,798.600 1008736 269887.853.270 32,145.600,919.998.870
These are the gold holdings of the Bank of France as reported in the new form
against 12.10 and 12.15. Peru at 27.10, against ofastatements.
b Gold holdings of the Bank of Germany are exclusive of gold held
abroad, the amount of which the present year Is £10,381,900. c As of Oct. 7 1924.
27.40.
d Silver is now reported at only a trifling sum.
Exchange on the Far Eastern countries is unchanged in all important respects from the past
several months. The Chinese currencies are, of
course, badly affected by the fluctuations and low
ruling rate for silver. The Japanese yen continues
steady. Japanese returns of foreign trade for the
first 10 days of February show a slight excess of
exports over imports, owing to smaller purchases
of raw cotton and slightly heavier exports of raw
silk. The stock market in Yokohama is quiet and
shows an upward tendency. Money continues extremely easy, with no demand. The silver market
is going through an uncertain stage once more. The
immediate cause is the uncertainty attending the new
Indian budget scheduled to be announced on the
first of March. Advices from London are to the
effect that a deficit of £13,500,000 will be shown and
that new and heavier taxation will have to be resorted
to, to cover the amount. It is now reported that
the silver duties will be advanced anywhere up to
4 annas per ounce. Closing quotations on yen
checks yesterday were 49.36@49 9-16, against 49.38
/@23/,against
@49 9-16. Hong Kong closed at 225
28/@29
3-16, against
Shanghai
at
22%@23 1-16:
28W1@281
/; Manila at 4932, against 49/3; Singapore
at 56.25@56 7-16, against 56.25@56 7-16; Bombay
at 36/,against 36/; Calcutta at 36/, against 36/.
FOREIGN EXCHANGE RATES CERTIFIED BY FEDERAL RESERVE
BANKS TO TREASURY UNDER TARIFF ACT OF 1922.
FEB. 21 1931 TO FEB. 27 1931, INCLUSIVE.
County and Monetary
unit.
Noon Buying Raw for Caine Transfers in New York.
Value in United Maws Money.
Feb.21.
EUROPE$
.140582
Austria,schilling
.139377
Belgium. belga
.007175
Bulgaria. ley
Czechoslovakia, krone .029602
.267327
Denmark, krone
England, pound
4 856562
sterling
.025174
Finland, markka
.039191
France. tram
Germany, reichemark .237598
:012945
Greece. drachma
401189
Holland, guilder
.174580
Hungary, pengo
.052337
Italy, lira
.267337
Norway. krone
111990
Poland, zloty
.044831
Portugal. escudo
.005951
Rumania.lea
.104575
5pain, peseta
.267615
Sweden, krona
Switzerland, [rano- .192793
Yugoslavia, dinar-- .017623
ASIAChina.299166
Chefoo tett
.295312
Hankow tadl
.288660
Shanghai tadl
.303750
Tientsin tael
Hong Kong dollar._ .227142
Mexican dollar__ - - .205625
Tientsin or Peiyang
209583
dollar
.206250
Yuan dollar
.359491
India, rupee
.494025
Japan, yen
Singapore (13.5.) dollar .560625
NORTH AMER..999829
Canada, dollar
1.000562
Cuba, peso
.464666
Mexico, peso
Newfoundland, dollar .997390
SOUTH AMER.Argentina, peso (geld) .746396
.084433
Brazil, milreis
.120592
Chile, peso
.715595
Uruguay, peso
.965700
Colombia. Peso
Feb. 25.
Feb. 26.
$
.140561
.139425
.007175
.029616
.267516
$
.140580
.139415
.007197
.029606
.267568
$
$
.140577 .140581
.139406 .139413
.007197 .007175
.029606 .029611
.267496 .267438
4.858845
.025181
.039195
.237726
.012946
401215
.174494
.052352
.267518
.111959
.044887
.005948
.106752
.267707
.192710
.017615
4.858943
.025183
.039191
.237729
.012945
.401201
.174526
.052360
.267575
.112030
.044837
.005948
.104447
.267731
.192686
.017612
4.857453 4.857906
.025183 .025183
.039188 .039187
.237028 .237647
.012947 .012947
.401163 .401085
.174528 .174539
.052354 .052361
.267498 .267463
.111959 .111959
.044837 .044837
.005949 .005948
.103340 .104659
.267643 .267640
.192661 .192482
.017622 .017602
Feb.23. Feb. 24.
8
Dollday
Feb. 27.
.309583
.304687
.295803
.313750
.230357
.213750
.304583 .302291
.299062 .297968
.290446 .290178
.308750 .306458
.226250 .225446
.210000 .208750
.299791
.296093
.288839
.303958
.225910
.208437
.217500
.214166
.359508
.494084
.560625
.213750
.210416
.359558
.493971
.560625
.211250
.207916
.359525
.493921
.560625
.212083
.208750
.359491
.493971
.560625
.999960 .999839 .999898 .999917
1.000546 1.000585 1.000585 1.000857
.465500 .467766 .468500 .469666
.997500 .997390 .997437 .997500
.745339
.084475
.120601
.705325
.965700
.747403 .749322
.084383 .084083
.120604 .120600
.705240 .711060
.965700 .065700
.752469
.082400
.120553
.715758
.965700
Great Britain and the Franco-Italian Naval
Controversy.
The action of the British Government in unexpectedly exerting its good offices to bring abou,t a
temporary adjustment of the Franco-Italian naval
controversy, while somewhat novel as a method of
diplomatic procedure, appears to have been one of
those steps which any Power, and particularly any
great Power, may properly take when it has become
convinced that international harmony is seriously
threatened. Ever since the London naval conference adjourned without bringing France and Italy
to an agreement about their respective naval forces,
the diplomatic relations between those two countries
have been strained. Italy, for nationalistic reasons
which could be well understood, refused to concede
to France a permanent superiority in naval strength,
and France refused to admit the claim of Italy to a
navy equal to that of France. Both countries, accordingly, have announced elaborate plans of naval
construction, and each laying down or launching of
a new vessel has been made the occasion for reiterating the purpose of the respective governments to enlarge their navies to such point as they severally
thought necessary for their defense.
The appeal which Arthur Henderson, British Foreign Secretary, and A. V. Alexander, First Lord of
the Admiralty, carried directly to M. Briand on
Monday,was preceded by several days of negotiations
at Paris in which Robert L. Craigie, of the British
Foreign Office, represented the British view. On
Feb. 20 it was reported that Mr. Craigie had induced
France to lower by 40,000 tons the global figure upon
which it had insisted at the London conference, this
reduction to apply principally to submarines with a
slight increase in destroyer tonnage. It had also
been 'agreed, according to the report, that the superiority of 244,000 tons over the Italian figure
which France had demanded should be reduced to
150,000 tons. This superiority of 150,000 tons,it was
understood, would continue only until 1936, when
the London treaty will expire if not renewed, at
which time the question of parity, which was said
not to appear in the agreement, might be reopened
by either party.
As it was promptly denied at London and Paris
that any definite 'agreement had been reached, the
figures mentioned must be taken with all reserve.
Moreover, the agreement, whatever its nature, appears to have been reached without a corresponding
discussion with Italy, although it was later stated
that Italy had been kept informed of the Paris conversations, and it was announced on Sunday that
Mr. Craigie would probably go to Rome within a few
days to take up the matter with the Italian Govern-
1480
FINANCIAL CHRONICLE
ment. The Italian press was quoted as doubting
whether the agreement, as outlined in the Paris
press, would satisfy Italian demands, and there was
some sharp criticism of the alleged terms in France.
Precisely what happened in Government circles in
the few hours following the announcement that an
agreement had been reached has not been made
known. An unverified report has represented
France as offering to adhere to the London treaty
without Italy, an offer which Great Britain could
not accept without creating a suspicion that it had
been negotiating secretly with France. On Monday,
however, Mr. Henderson and Mr. Alexander,
after ascertaining by telephone that their presence would be welcome, hastened to Paris and
at once went into conference with M. Briand and
others. The usually well-informed Paris correspondent of the New York "Times" reported that
the hurried visit "must be interpreted as significant
of British dissatisfaction with the French claim"
even as it remained after the conversations between
Mr. Craigip and M. Massigli, the French Minister
of Naval Affairs, and that the French figure was
still 50,000 tons higher than the figure by which the
British Admiralty estimated that construction
should be reduced if Great Britain was to observe
the London treaty stipulations. A particular difficulty, this correspondent further indicated, lay in
the proposal of France to proceed at once to the construction of a 23,000-ton battleship under the provision of the Washington Treaty which allows
France 70,000 tons of capital ships, the ostensible
reason being the competition in armament occasioned by the construction of the new Ersatz Preussen cruiser by Germany. Still another difficulty,
it was believed, grew out of changes in the type and
character of French naval vessels which made it impossible to apply the usual standards of measurement and classification.
How or in what manner these difficulties were resolved, or whether they were completely resolved at
all, is nyt yet officially known. An official communique issued on Tuesday merely announced that the
conversations, which had taken place "in the most
friendly atmosphere," had reached a stage which
permitted Mr. Henderson and Mr. Alexander to
begin similar conversations with the Italian Government. The British representatives reached Rome
on Wednesday, and began their conversations with
Signor Grandi and others the next day. Details of
•the conversations are still withheld, but it was reported on Friday that the outlook for an agreement
by the Italian Government to the substance, at least,
of the British and French proposals was promising.
The importance of the understanding which the
British Government has sought to bring about cannot easily be overestimated. An agreement on the
lines of the Craigie proposals would not, of course,
dispose finally of the issue of naval rivalry between
Italy and France, since it would terminate in 1936.
By that time, however, it is thought, the Italian and
French navies will have approached considerably
nearer to tonnage parity than is the case at present,
and since the terms of the London treaty must in
any event be reconsidered in 1936, the parity issue
may be expected to present lesser difficulty then
than it did when the treaty was being framed. On
the other hand, unless Franco-Italian naval building
could be halted, it was apparent that the naval situation in 1032 would have taken on such a character
[VOL. 132.
as to render all but useless the holding of the disarmament conference which is planned for that year.
It was this latter consideration that seems to have
weighed heavily with the British Government in its
decision to make a vigorous use of its good offices.
The fear expressed in the German press that continued Franco-Italian building, with France heavily
in the lead, would make France the dominant Power
in the disarmament conference is clearly not without foundation. As Germany sees the matter, a conference controlled by France would be very unlikely
to free Germany from the armament restrictions to
which it is now subjected, or initiate any• general
reduction of armaments from which Europe as a
whole would benefit.
The appeal to France and Italy comes at a moment when France, notwithstanding the KelloggBriand pact, is again proposing heavy expenditures
for national security. The army budget, introduced
in the Chamber of Deputies on Tuesday, calls for
appropriations aggregating about $480,000,000, or
about the same amount as last year. The prospective enemy, as before, is Germany. According to the
reporter of the budget, France has 200,000 trained
effectives against a German force of 259,000 with an
average of six years' experience, the German figure
being obtained by adding the police and frontier
guards to the "treaty army" of 100,000 men. On this
showing, the reporter pointed out, France is inferior
to Germany in man-power for defense, and "any
new reductions without conditions would be equivalent to offering France for a new invasion." The
naval appropriation for 1931-32, voted by the Chamber on Feb. 18, aggregated $123,000,000, of which
$39,000,000 was for new construction. The British
Admiralty, on the other hand, announced on Tuesday the retirement on April 1 of 1,044 naval officers
as a result of extensive cuts to be made in the service.
It is reasonable to suppose that the MacDonald
Government, in exerting itself to bring France and
Italy together on naval policy, was not unmindful
of the influence of a diplomatic success in strengthening the Government at home. Mr. MacDonald has
succeeded in getting from the House of Commons
authority to borrow a further $100,000,000 for the
unemployment fund, but his Education Bill has met
defeat in the House of Lords, and a Liberal amendment in committee to the trades disputes bill goes
so far in limiting the right to strike as to make the
measure extremely unsatisfactory to the unions, and
it is reported that the bill may now be dropped. To
add to these embarrassments, the Independent Labor
group headed by Sir Oswald Mosley has again
brought forward its suggestion of a super-Cabinet
with quasi-dictatorial powers, and three of its members have emphasized their dissent by resigning from
the Labor party while still retaining their seats in
the Commons.
It has been Mr. MacDonald's fortune to snatch victory from what seemed like impending defeat more
than once,sometimes by profiting from the divisions
among his opponents, sometimes by unexpected success in another quarter. There is no reason to doubt
his deep interest in international peace, and Mr.
Henderson, in whatever he does, of course speaks
for his chief. In the light of the events of the past
few days, the warning which Mr. Henderson sounded
a little time ago of the necessity of disarmament appears now to have been a first step in a carefully
arranged plan. A Franco-Italian accord will not,
FEB. 28 1931.]
FDTANCIAL.1HRONIC12_44'
unfortunately, do all that the proposers of the London naval conference talked of accomplishing, for
naval building on a considerable scale will still go
on. It should, however, diminish greatly the dangers of competition, and thereby avoid resort by
Great Britain to the escalator clause of the London
Treaty in order to prevent its navy from being overmatched. If Mr. MacDonald can show Great Britain
as the leader in this accomplishment, it will be more
difficult to dislodge either him or his party over
some political issue of merely domestic concern.
Manipulating Millions—Banking Responsibilities
We are far from agreeing to the proposed law to
empower the State Superintendent of Banking with
authority to remove a bank officer overnight if in
his judgment the officer has violated the banking
laws. A proper proceeding in the courts, where the
accused may be heard in his own behalf, is the
remedy that protects the innocent and punishes the
guilty. If our courts are weak, they should* be
strengthened. If our banks are derelict, they should
be closed; as they may now be, peremptorily. Good
men must not be exposed to what might become the
tyranny of officials. Banking is a common law
right—banking defined as dealing in credits—and
State supervision and a degree of regulation grow
out of the concensus of opinion that banks are semipublic in their functions and may be inspected by
the State in the interest of depositors, borrowers,
and the stockholders themselves. There is enough
authority here to protect all concerned if it is exercised vigilantly, rigidly, and quickly.
But it must appear to many who read the testimony in the inquiry into the affairs of the closed
Bank of United States, confusing though it may be,
that the ease with which men manipulate millions
hi the conduct of banking, and there are other
examples in other cities, constitutes a danger which
it will always be difficult for inspection and law
to reach. Be the bank large or small, six thousand
it is estimated have failed in the last 10 years, the
three requisites for both directors and officers are
honesty, ability, and application. In the instance
now before the people of New York City we make
no charges of maladministration. The Banking
Superintendent 'and the courts will take care of
that. We wish to approach the subject from an independent attitude. We wish to call attention to the
fact, we think now apparent from the investigation,
that all men are not fitted for banking, and for the
reason that they are not competent, are not by temperament rightly keyed to the task of handling the
millions of money belonging to the depositors. There
is a great difference between the inside and the
outside of a bank counter. To the outsider the
inside looks easy. Day after day the bank runs
like a clock. The substantial borrower always gets
his accommodation. The depositor always receives
courtesy and attention. There is confidence on both
sides of the counter. And a bank never closes without a shock to the community. But the conduct of a
bank is not as easy as it looks, more especially in
times of economic turmoil, excited markets, and,
possibly, general "depression."
We begin by saying that the massed millions in
big banks are no more the property of the officers
and directors than the gathered tens of thousands
in small banks. Always and ever these funds, big
or little, are the property of the patrons. To forget
1481
this for a moment may be fatal. The relation of
debtor and creditor prevails at law, but there is a
trusteeship implied by the mere fact of receiving
and tendering the deposits. True,large transactions
obtain in large banks, surrounded by all the complexities of modern business, but every dollar is
sacred to the use and welfare of the individual depositor—and no loan may be made save with immediate and continuous consideration of all the borrowers and all of the depositors.
Watch care is not only the safety of the institution, it is the fulfillment of a trust; it is justice to
the depositor.
Manipulating these massed millions in and by
the organization of affiliated companies, either for
undue profits to the bank, or, reprehensibly, for the
ultimate private interests of the officers and directors, is a betrayal of trust, and is degrading to the
high calling of banking. Not all men are to be
entrusted with the handling of millions. Some grow
self-opinionated by the mere exercise of unaccustomed power. They conceive themselves to be financiers simply through opportunity to do big things.
And if there is a streak of cupidity and avarice in
their natures they may become dishonest by the
mere force of circumstances. Though in the transactions of the daily grist millions are involved and
only training and ability of the highest order can
solve the problems that come up, each an issue of
moment in itself, the mind of the banker must always
keep in his consciousness the rights, the safety, and
the welfare of his smallest depositor. Not a dollar
he handles is his own!
It is a wrong to use the funds of a bank, either
directly or indirectly, in furtherance of personal
schemes. We do not expect the managers of our
principal banks to be men of no means. The acquisition of a modest fortune is a recommendation to
their financial ability. Though it must be said that
in banking men who come up from the ranks do not
usually thereby acquire large estates while those
who transfer themselves from other successes in
business to banking are not thereby especially qualified to conduct these institutions. On the other
hand, we do expect that the conduct of private fortunes, however acquired, shall be kept separate from
the funds and interests of the bank. Not all men,
unfortunately, are capacitated to do this. They become bloated with what may be termed a vicarious
power. The lure of the millions to be made in large
transactions becomes too much for them. They fail,
in the big transactions, to think of the little fellow
who puts his all in their charge. They succumb to
the seduction of big chances. And it is but a step
from this invested power until they become borrowers of bank funds for private manipulation even
contrary to law. If they lose, the bank loses. If
they gain, still the bank loses, for they have proved
their unfitness.
No laws we may enact will entirely cover this
danger in banking. Depositors may hold it partially
in check. But how they are to be acquainted with
the manipulations of managers is the question. One
think seems apparent, men of big business in industries outside the bank can, if they will, for they
are in a position to have knowledge, set an example
to others by the mere bestowal of their patronage,
can, if they will, by this means, force more circumspect conduct of banking. Interlocking directorates
seem to have passed out of the public eye. But big
1482
FINANCIAL CHRONICLE
depositors are apt to know when they occur, are apt
to know when affiliates are created, and can by their
patronage guide others. Putting the savings of the
poor into large commercial banks requires especial
care in conduct, and commands especial consideration by the more opulent depositors, and bank failures will go far to inaugurate a law that will segregate these deposits or banish them into special
banks, if they continue. How much more officers
must feel their responsibility need not be mentioned.
Honesty, ability, unfailing vigilance, can never be
dispensed with.
Mergers and consolidations are upon us. They
are right—in the right way. But when they assume
the form of an octopus, absorbing what comes in
their way, merely to inflate themselves in size, they
are to be watched carefully. In banking, we feel it
but just to say growth by this form of proceeding
is not always a recommendation. Stockholders must
sanction—but there is at least room for manipulation of the millions—there is opportunity to gorge
on a mass of indigestible securities. As time passes,
and deflated-price stocks °gradually recover, and
bonds are enabled to overcome the influence of the
general depression, the public will be informed of
weak spots in the numerous consolidations of the
past in all forms of industry. Banks must not be
made to hold the bag. Happily, inquisition into
their standing and methods assures us of their
integrity and liquid strength. The few big banks
that have gone down, public examination shows that
the manipulation of millions, either for greed of
growth or for personal interests, has been their
undoing. Small banks, it is now generally conceded,
failed because the communities failed, and they
failed because of the World War. If credit learns
the lessons presented to us, the future of business
must proceed without fear or reproach.
r`;z:
Disarmament: or War in the Air.
One of the paradoxes of modern reasoning on war
is that nations will continue to support navies, at
an enormous expense, and quibble long over 91mitalions" and "parity," when battleships, cruisers, and
destroyers will be completely outmoded in the next
war by bomb-carrying airplanes flooding great cities
with poison gas. Even if this predicted war must
come, every dollar spent on the present form of
naval warfare will be wasted, for before the ships
can be stripped for action, swift fleets of airplanes
can destroy great masses of civilian population and
render all defenses by sea futile if not foolish.
Another paradox, brought to the fore in the speech
of an English statesman, from which we shall presently quote, is that the fighting world, and especially
the victors in the World War, in the original treaty
by which the vanquished were compelled to disarm—
themselves, at least impliedly, agreed also to disarm
as fast as possible. This is not mere limitation. It
is not parity. It is outright reduction; it is factual
disarmament. The Paris Peace Pact outlawing war
stands as a mere gesture toward peace, though a
proudly expressive and progressive one, until faith
is shown by works, by actual destruction of
armaments.
Foreign Secretary Arthur Henderson, and whose
'efforts to bring about a naval agreement between
France and Italy we discuss in a previous article,
on Feb. 9, in London, speaking before 3,000 in
Queen's Hall as a member of the British Labor Gov-
[VoL. 132.
ernment, with intent to arouse the English people
to crystallize public opinion to demand actual disarmament at the hands of the world conference next
February, said: "The next war will not be like the
last. It will be incomparably worse. A great military expert has said that in the last war we were
killing by retail, but next time we shall do it wholesale. The next war, if it should ever come, will be
fought by aircraft, and by aircraft using poison
gas." . . . "Every year our air force carries out
maneuvers over London. Have you 'ever thought
what those maneuvers mean? They mean that our
staff, like every other staff, is now expecting that
the operations of the next war will be air attacks
against great centers of industry and civilian populations." . . . "It is useless for us to protest
that such warfare would be an international crime.
We have surely learned it is beyond our power to
humanize the conduct of modern war. Once war
begins, no man and no government can control it."
. . "We may be very certain that if war occurs
it will bring with it destruction that will engulf in
all human probability the very civilization in which
we live." . . . "We believe in the pact of Paris
because we believe armaments are a wholly foolish
method of settling international disputes. To us
the pact of Paris is a renunciation of force in international affairs, and we believe the renunciation of
force should carry with it renunciation of the means
of war."
Who blundered at the last colorless and anaemic
disarmament conference, which set its high mark at
a "limitation" confined to "parity" of two great
nations, it would now be useless to try to say. But
we feel assured that the people of the United States
would have backed and sanctioned a much greater
degree of actual disarmament than was secured.
Foreign Secretary Henderson thinks "everythin
now depends upon how the governments complete
the framework which the Preparatory Commission
has drawn up and upon the figures which the governments insert." He is convinced that "this thing (is)
the greatest of the moral issues which our generation has to face." Our economic crisis, unemployed
men and depressed industries, he avers, are the
"wreckage left by the struggle of 1914-18." Shall
we, the people of the United States, stand idle while
these fires are lighted on every hilltop in England?
Shall not we, too, in the intervening year, formulate, by constant debate and deliberation, a public
opinion that will demand of the next conference an
actual disarmament that shall not stop much short
of totality? Will no picture of the possible desolation that may come upon the world at the breaking
out of this now freely predicted war rouse us from
our indifference? Can we, even in our isolation from
the contest, escape the economic consequences of
the destruction of half a world? What are governments and laws, what are material progress, education, culture, what are comforts, love, and happiness, if they are to be overwhelmed by this colossal
catastrophe of annihilation?
Near and ever nearer fall the dates when this
war is to come. Are these predictions mere fancies
in the face of the "preparedness" that is everywhere
going on? We are unwilling that our Congress shall
convene for another year. We are excited, perturbed, over our failure in the noble experiment of
prohibition which undertakes to make men moral by
law. We seek for some way out of a "depression"
FEB. 28 1931.]
1483
FINANCIAL CHRONICLE
that destroys business and production. We pass
restrictive laws that throttle foreign trade and foster
national animosities. We plan measures that shall
prevent, in the future, unemployment. We project
costly internal wate:way improvements and huge
railroad mergers to aid commerce. We envision 10.
and 20-million cities where men and women are to
dwell in amity and comfort hitherto unknown. We
create marvelous foundations to cultivate health and
happiness. No idea or ideal of mind and heart is
too big for us. Yet because of our national egotism
we refuse to take the simple way of disarmament to
prevent the coming of a war that will inevitably
turn us back to liarbarism. Though legend or truth,
the sinking of the lost Atlantis was no more catastrophic to the whole world than will be this poison
gas war which some say may break upon (us as early
as 1933!
Mr. Henderson said: "The world economic crisis
can only be coped with by world action, but world
action means international co-operation on economic
questions of every kind, and this will never be
obtained while our policies are founded on the constant fear of war. Tariff barriers, trade prohibifions and economic nationalism and self-sufficiency
are all the consequences of conceptions of national
interests which have been created by the fear of
war." Is there hunger in our own land to-day? Are
there idle men roaming the streets of our cities
to-day asking for work and suffering in want?
What, then, will be the economic condition of the
world after this next war,infinitely more destructive
than the last one? Do we expect this war—no; a
thousand times no! But suspicion is more subtle
than expectation. There are competent observers
overlooking the States of Europe who are frank to
say there are more causes for war now than in 1914.
One thing we feel—"preparedness" will not prevent
this war. The fatal spark that so often sets the conflagration if it find the tools at hand will seize them
while the fevers of hate and violence are at white-hot
heat. Of that we have no doubt.
Public opinion is the law of all laws. Let us not
forget that, with all the armaments scrapped, commercial airplanes may be converted into bombing
machines in a week. It is the heart of man that
must be changed. Notwithstanding this disquieting
element always possible to our peace calculations
public opinion demands some evidence in the concrete that we intend to keep the peace pact, "we"
meaning all nations. That evidence is real "disarmament," not resolves on paper. When we speak
of international laws of warfare, when we hope for
the humanizing of wholesale murder under the sanction of war,let us show ourselves willing to arbitrate
by destroying the inhuman destroyers that, in the
rapid advance of death-dealing inventions, are but
the relics of the wars that have been,from the battering-ram to the monster tank. With these out of
sight we may make new rules which will forbid the
manufacture of poison gas and the conversion of
commercial airplanes and thus, in the absence of
navies, the more conserve the continuance of peace.
And let us not be deterred from speaking our minds
in a free country by the sneering making of the
simple word "pacifist" an opprobrious epithet.
its proper position in relation to the reports of other
years. The value of merchandise exports and imports last year were both enormously reduced. Exports have not been at as low a point in respect to
value since 1922, and prior to that year since 1914.
As to imports it is necessary to go back to 1921 for
any correspondingly low figures. Practically in
each of the intervening years between 1921 and 1930
our foreign trade has been considerably larger than
that of 1930. Exports in 1929 were in excess of any
year back to 1920, so far as value was concerned,
while as to imports, there was only one year since
1920—that of 1926—in which the value was higher
than in 1929. This naturally accentuated the decline in 1930 in comparison with the preceding year.
Commodity prices last year kept almost constantly
falling. For a number of very important products,
the decline in prices was very heavy. This is clearly
shczwn in the losses that appear in export and import
values. Furthermore,there are a number of instances
where the losses in value in 1930 were for very heavy
amounts, equal, in several important products, to
40% or even more. Actual shipments, measured by
quantity moved, were as to some commodities larger
in 1930 than in the preceding year. To put the entire
foreign trade of both exports and imports on a
quantitative basis is not practical, bat so far as
such a comparison is possible, it is very apparent
that the actual trade movement in 1930 was not so
much reduced from the unusually high totals of the
year 1929 as the amounts as to values would indicate. In the following table the value of merchandise exports and of imports is given for many years:
U. S. MERCHANDISE EXPORTS AND IMPORTS (CALENDAR YEARS)
.
Rums..
Total Trade.
Imports.
Exports.
Cal. Year.
1902
1903
1904
1905
1906
1907
1908
1909
1910
1911
1912
1913
1914
1916
1916
1917
1918
1919
1920
1921
1922
1923
1924
1926
1926
1927
1928
1929
1930
$
1.360.685,933
1,484.753,083
1,451,318.740
1,626.990,795
1,798.243334
1.923,426.205
1,752,835.447
1,728,198.645
1.866.258.904
2.092,526.746
2.399,217.993
2,484,018,292
2.113,624.050
3.554,670,847
5.482.641.101
6.233,512.597
6,149,087,546
7.920.425.990
8,228.016.307
4.485.031,536
3,831,777,469
4,167,493,080
4,590.983.845
4.909.874.511
4,808,660.235
4.865,375.325
6.128,356,434
5,240,995,000
3,843,475,000
$
969.316.870
995.494.327
1.335.9C9.190
1.179.144.550
1.320.501.572
1323.169.820
1316,374,087
1,475.520.724
1,562,904,151
1,532.359.160
1.818.073,055
1.792.596.480
1,789.276.001
1.778.596,695
2,391,635.335
2.952.467.955
3.031.212.710
3,904,364,932
5.278.481390
2.509.147,570
3.112.746.833
3.792.065,963
3,609.962.579
4,226,589.203
4,430.888.366
4,184,742.416
4.091.444.394
4,399,361,000
3,060,894.000
$
$
Esp. 391,369.063 2.330.002.903
480.247.410
Exp. 489.258.756
Exp. 415.409.550 2.487.227.930
Exp. 447.846.245 2.806,135.345
3.18.746.006
Erp. 477.741.862
Exp. 600.256.38.5 3.346,596.025
Exp. 636,461.360 2,869,209.534
Esp. 252.677.921 3.203.719.369
Exp. 303,354.753 3.429.163.055
Exp. 560.167.686 3.624.885,906
Exp. 58L144.938 4.217.291.048
Exp, 691.421.812 4.276,614,772
Exp. 324,348.049 3,902.900.051
Exp.1,776.074,152 6.333.267,542
Exp.3.091.005,766 7,874.276336
Erp.3.281.044.642 9.185,980,552
Exp.3,117.874.835 9.180.300.255
Exp.4,016.061,058 11.824.790,922
Exp 2.949,534,817 3.506.497.779
Ezp.1.975.883.786 6,994.179.106
Exp. 719,030.636 6.944.534.302
Exp. 375,427.117 7,959.559,043
Exp. 981,021.266 8,200.946.424
Exp. 683.208.048 9,136.430.774
Exp. 377.771,869 9.239,548,601
Exp. 680.632.909 9.050.117,741
Exp.1.036,912.040 9,219,800.828
Exp. 841.634,000 9,640.356.000
Exp. 782,581,000 6.964,369,000
Merchandise exports last year were valued at
$3,843,475,000 and imports at $3,060,894,000. The
excess of exports amounted to $782,581,000. For the
preceding year exports were valued at $5,240,995,000
and imports at $4,399,361,000, the former exceeding
imports by $841,634,000. The decline in the value
of exports last year from 1929 was $1,397,520,009,pr
26.7%,and in imports $1,338,467,000, or 30.4%. The
reduction in the value of both exports and imports
in 1930 from the preceding year was exceedingly
large. The greater part of the loss was during the
last six months, and in some respects the report for
December was the most unsatisfactory for the entire
year. In the earlier months of 1930 there was evidence of a little improvement, but this condition
did not continue. In fact, as stated above, the dein
Trade
1930.
Foreign
cline
Country's
became more marked as the year advanced.
The
foreign
the
place
to
trade
How
difficult
of the loss in the value of our foreign
much
rather
It is
the
year
for
to falling commodity prices cannot
1930
in
States
due
trade
was
United
the
of
statement
ml
1484
FINANCIAL CHRONICLE
be positively stated. There are several very serviceable records showing the monthly variations in commodity prices, and while they are not uniform, there
is substantial agreement between those most generally in use. They show 'a decline for the past year
for each month from the record of 1929 of 9%. The
reduction in the total movement for 1930 from that
of the preceding year was 28.8%, and it is evident
from the above figures that the actual decline last
year was not more than one-fifth, making allowance
for the difference in prices. That difference, however, was sufficiently large for fa single year. Of
the thousands of commodities entering into our foreign trade, there is a certain small number for which
the value is relatively large, such as cotton, coffee,
sugar, rubber, silk, motor cars, copper, and wheat
and flour. Below we give a tabulation showing by
certain groups of commodities the movement of each:
(In thousands throughout, 000 omitted.)
-Quantity
Value1931.
1930.
%
1931.
1930.
%
6,590
7,850 -13.1 $496,738 1770,830 -35.6
87,774
90,129 -2.6
88.082
111.501 -21.0
13,615
13,663 -0.4
69.401
80,791 -14.1
734,135
936,481 -20.5
82.979
117.714 -29.5
579,704
565,901 +2.4
145,009
146,083 -0.7
122,166
126,377 -3.3
438,697
403,382 +8.7
758,235
998,475 -24.1
105,342
183,405 -42.6
ExportsCotton, bales
Wheat, bushels
Flour, barrels
Lard and fats
Tobacco,lbs.(raw)__ _
Refined oils, bbls
Copper,lbs
Total
Motor vehicles
Other machinery
Wood and paper
Cotton manufactures
Chemicals
$1,426,248 $1,813,706 -21.4
312,824
589,265 -46.9
520,639
611,497 -14.9
163,868
210,844 -22.2
73,679
111,218 -33.7
127,086
152,109 -16.1
ii
$1,198,096 51,674,833 -28.5
1,219,131 1,752,456 -30.4
Total
All other exports
Total exports
ImportsCoffee, lbs
Sugar, lbs
Rubber, lbs
Wool, lbs
Silk, lbs
Copper, lbs
$3,843,475 $5,240,995 -26.7
---Quantita
1931.
1930.
%
1.599,317 1,482,258 +8.0
6,904,319 9,776,775 -29.4
1,262,935 1,089,830 +15.9
183,528
280,371 -41.7
73,733
87,068 -15.3
817,154
974,312 -16.2
Total
Textiles (other than above
Anknal products(leather and furs)
Vegetable products (excluding coffee and sugar)
Tot-al
All other imports
Total imports
1931.
$209,472
129,628
140,641
37,093
262,913
104,616
Value
1931.
%
$302,397 -,-30.7
209,277 --38.1
240,967 --41.6
87,344 --57.4
427,126 -38.4
152,710 --31.5
$884,363 $1,419.821 --30.5
300,705
487,439 --38.3
254,199
396,733 --36.0
257,734
317.030 --18.7
1812,638 11,201,222 -32.3
1,363,893 1,778,318 -23.3
13,060.894 14,399,361 -30.4
[Vol,. 132.
tity; flour relatively about the same ratio of loss;
lard and fats, 29.5 and 20.5%, respectively; tobacco,
unmanufactured, shows only a trifling difference
in the value of exports and a small gain in quantity,
and refined oils just the reverse, a higher value for
exports of 8.7% in 1930, and a small loss in quantity.
Taking, by themselves, the divisions in the above
table, where the quantity and value are both shown,
three make gains, one of them crude rubber of 15.9%,
while for three others the quantity last year was
only slightly reduced, not in excess of 3.3%. An
average of the ratio of gain and loss as to quantity
for these 12 products indicates an average decline
of 10% for the year just closed, whereas these 12
classifications show a loss in the total value for
1930 as compared with 1929 of 28.8%.
In the section of the above table where quantities
are not shown, the total for the eight divisions included shows 'a loss of 28.8% for 1930 compared with
1929. Losses are quite large for all of these eight
different classifications. For motor vehicles the
decline last year in exports was 46.9%; it was heavy
in the exports of cotton manufactures; for animal
products in imports, largely leather and furs; also,
for imports in textile lines, other than silk and
wool. The two divisions, the one in which quantities are given, and the second where values only
appear, cover 62.1% of the total value of all exports
and imports for the past year. The remaining
37.9% of our total foreign trade for 1930, amounting to $2,605,931,000, shows a reduction from the
corresponding figures of the preceding year of
24.1%. The greater part of the loss in the value
of our foreign trade last year, in both exports and
imports, was in cotton; lards and fats; copper;
wool; coffee; sugar; crude rubber; motor vehicles;
cotton manufactures; animal products, inedible,
chiefly leather and furs, and in imports of textiles,
including silk and wool.
Making the usual statement of merchandise exports, with the leading classes separated to show
the ratio that each bears to the total, there is little
change of importance between the different divisions
for the past two years. The increase in the ratio
of petroleum products for 1930 reflects the greater
steadiness in the values for that division. Cotton
again takes first place as to the value of exports,
although the amount for 1930 is very much below
that of the other years included.
In the following table the changes from year to
year in a number of leading staple articles of export, such as machinery, ores, textiles, petroleum,
chemicals, cotton, breadstuffs and provisions, are
shown; also the relation that each of these 'articles
bears to the total movement from this country to
foreign ports. The compilation covers four years:
There are a number of divisions in which the
quantity as well as the value can be given. We have
included here 12 of the larger classifications for the
last two years, which cover altogether one-third of
the total value of merchandise exports and imports.
For eight of these 12 divisions, the value in 1930
was very much lower than in the preceding year,
the loss ranging from 30 to over 50%. There are
five other leading classifications out of the other
eight in the above table, where the value alone is
given, which also show a heavy loss last year, the
decline being from 33% to 47%. These 13 sections,
the eight first mentioned and the other five, include
practically one-half of our total foreign trade. They
cover cotton for which our exports last year declined
35.6% in value, although in bales the reduction was
only 13.1%; coffee, with 30.7% less in the value of
imports, while in quantity the receipts last year
Exports
Ratio
Rano
Ratio
were 8% larger than in 1929; sugar, with 38.1% loss (000 Omitted) 1930. o 1929. to 1928. Ratio
to
1927.
to
$
Total
$
Total
$
Total
Total
$
in the value of imports, and a decline as well in Machinery
863,463 22.4 1,200,761 22.9 1,035.544 20.2 857,018 17.6
354,110 9.2 535,889 102 500.173 9.7 460,217 9.7
and ore!'
quantity of 29.4%; copper, both exports and im- Iron
Textiles•
143,114 3.7 208.445 3.9 204,471 4.0 195,039 4.0
& oils_ 494,243 12.9 561,191 10.7 525,853 10.3 485.903 9.9
ports, with a lower valuation 37.7% and a loss in Petroleum
Chemicals
127,986 3.1 152,109 2.9 137.331 2.5 132.251 2.8
quantity of 20.1%, while crude rubber shows a reduc- Total
1,982,916 51.6 2,658,395 50.6 2,403,372 46.7 2,130,428 44.0
496,738 12.9 770.830 14.7 920,009 17.1 826,318 16.9
tion of 41.6% in the value of imports, against a Cotton
191,342 5.0 286.354 5.5 315.095 6.2 443,767 9.1
Breadstuffs
186,854 4.9 244,247 4.7 228,425 4.3 226.248 4.7
gain of 15.9% in quantity. Raw silk was 38.4% Provisions
All other
985,625 25.6 1.281,179 24.5 1,260.855 25.7 1,238,614 25.8
reduction
of
15.3% in
lower in value, with a
Total all
3.843,475 100.0 5,240,995 100.0 5.128.356 100.0 4.865.375 100.0
* Omitting raw cotton.
quantity.
Separation of the various divisions of merchanThese are all of them very important products,
and tliey all contribute heavily to the large decline dise imports for 1930 also indicates no great changes
last year in our foreign trade. Others include wheat, in the ratio that each bears to the total, the decline
with a loss of 21% in value 'and only 2.6% in quan- last year applying to nearly all values. Imports of
FEB. 28 1931.]
FINANCIAL CHRONICLE
1485
Imports
(000 Omitted)
Coffee
Sugar
Other foods •
Silk
Other text1les
Animal products a
1930.
$
Ratio
to
Total
209,472 6.8
129,628 4.2
354,600 11.6
262,913 8.1
337,798 11.0
254,190 8.0
1929.
$
Ratio
to
Total
302,397 6.9
209.277 4.8
450,508 12.4
427,126 9.7
574,783 13.1
396,733 8.7
1928.
$
Ratio
to
Total
309,648 7.6
207.025 5.1
437,928 10.7
367,997 9.0
652,074 13.5
377,935 9.2
1927.
$
Ratio
to
Total
284,275 6.2
258,155 6.1
433,104 10.3
390,365 9.3
464,088 11.1
345,321 8.3
Total
1.548.601 50.6 2.351,824 55.6 2,252.607 55.1 2,155,308 51.3
Rubber
140,641 4.6 240.967 5.5 244,855 6.0 339,875 8.1
Wood and paper
319.455 10.4 377,328 8.6 358,779 8.8 365,572 8.7
Minerals and ores_ 288,383 8.7 395,954 9.0 315,654 7.7 328,350 7.8
do non-rnet_ 245,831 8.3 306,050 7.0 285,153 8.0 262,837 6.2
All other
539,983 17.6 717.248 14.3 634,396 14.4 732,800 17.9
Total all
3.060,894 100.04,399.361 100.0 4,091.444 100.04.188,742 100.0
•Animal products and vegetable. a Largely hides and furs.
By geographical divisions the reduction, both as
to exports and imports, was quite uniformly distributed. Exports to European countries were very
much smaller in value in 1930 than they were in
1929; likewise the merchandise movement into the
United States from Europe. With the smaller totals
for both exports and imports in our European trade
the balance for that trade on the export side was
naturally larger in 1929 than for 1930. Our exports
to Canada, Mexico, and Cuba were also very greatly
reduced in 1930 and merchandise imports were of
much smaller value than in the preceding year; likewise to the South American countries. Relatively,
the decline was especially marked to the Par Eastern continents, especially in imports, reflecting the
losses in crude rubber and silk. Exports to Russia
last year were very much larger in value than in
1929, notwithstanding that in the last-mentioned
year exports to that country from the United States
were more than double the average value of the five
preceding years. There was also a. slight increase in
the value of merchandise imports from Russia to
the United States in the year just closed. Exports
of agricultural machinery and tractors from the
United States to Russia last year were double the
value sent to that country in 1929.
The exports of gold from the United States in 1930
were practically the same as in 1929, amounting to
$116,967,000 against $116,583,000 in the preceding
year. On the other hand, gold imports were $396,054,000, and were not only in excess of 1929 but were
the largest of any year back to 1921. The excess
value of gold imports last year was $280,087,000,
against net imports for the preceding year of $175,066,000. Exports and imports of silver were lower
in value in 1930 than for many years, reflecting in
part the constantly declining price of that metal
throughout the year. Exports of silver amounted to
only $54,157,000 and imports to $42,761,000. In 1929
the foreign movement of silver to and from the
United States was practically the same as in other
recent years, exports amounting to $83,407,000 and
imports to $63,940,000. Silver exports last year
were only $11,396,000 in excess of imports, the smallest since 1923-in 1929 the excess value of silver exports was $19,467,000. In the following table the
0000000WW0E0§0!"
00000000011WW.OW,
0000
WNWWWWWWWWW
0000..10WIAWW.00WslOWIP.WW00
W
silk and other textiles are reduced as compared with gold and silver movement is shown for a long series
the ratio for the preceding year; likewise crude rub- of years, with the net amount for each:
ber; minerals and ores, as well as sugar and other
GOLD.
SILVER.
food products, excepting coffee. For the latter there Year
endtn /
Excess of
I
Excess of
is a slightly higher ratio, because of the increase in Dec. Exports. Imports. Exports 1+)oil Exports. Imports. Exports
(1-)or
31.
Imports(-).
Imports(-).
quantity imported in 1930 in comparison with 1929.
$
$
$
It
I $
$
In the following table the value of imports of a
36,030,591 44,193,317 -8.162.72649,272.954 28,402,93 +22,870,019
65,267,698 -20.920,862 40,610,34223.974,508 +16,635,834
44,346,8
121,211,827184,803,234 +36,408,593 50,135,245 28,087,042 +24,048.266
number of the leading lines in our foreign trade is
46.794.4671 50,293,406 -3,498,938 57,513,102 35.939.135 +21,573.967
46.709.158155.579,380-108.870,222 60,597.091 44.227,841 +18,729,250
shown for a period of years. Altogether these sepa55.215.681143,398,072 -88.12 ,391 61,625.886 45.912,350 +15,713,506
81,215,456 60,276.29 +30.939,163, 51.837,671 42.224.1 • +9.613,541
rate classes constitute more than 80% of all our
132.880,821 44,086,966 +88,793,855 57,592,309 46,187.7 i +11,404,607
58,774,822 59,222,51
-447.698 57.360.973 45,878.168 +11,482.805
merchandise imports. In addition to the value
37,183.074 57 445 1
-20.262,110i 65,664.848 43,748.571 +21.918.075
47,424.842 66,548,772 -19,123,930 71,961.755 48.401.086 +23,560,669
shown, the ratio that such amount bears to the total
91,698,610 63,704,832 +28.093.7781 62,776.831 35.867,81 +26.908,812
222,816,156 57,387.741 +185.228,415' 51,603,060 25,959.18 +25,643,873
of all imports is given:
31,425,918451,954,590!-420,528,8721 53,598.884 34.483.9
+19,114.930
155,792,927685,990,234L_530,197,807 70,595.037
71.883,884 552,454,3741-180,570,490, 84,130.878
41.069,818 62,042,7481 -20,972.930252,846.464
368,185,248 78,534,046 +291.651.202 239,021,051
322.091,208417,088.273
, .
, ,
. ,
667,356.920i 51,575,399
. ,
36.874.894275.169.785 238,294.891 61,897.286
28,643,417322,715.812 294,072,396 72.468,7891
61,648.313 319,720,918-258.072,605109,891.033
262,639,790'128,273,172!+134,366.6l8199,127,585
115,707,815213,504,020 -97,796.205' „
201,455,100 207,535,195 -6,080.095 75.624.7801
560,760,000168.887,000 +391.873,000 87,382,000
116,583,000,291,649,
-175,068.0
021 83.407.
115R7
_O 006398 OM_
2.80.11S7.
54.157.
32,263.28 +89,331.743
53,340.477 +30,790,899
71,375.6!+181,470.765
89,410,018 +149.611.033
88.080.041 +25.656.188
63.242,871 -11,887,272
70.808,653 -7.999.367
74.453,5 I -1,984.741
73.944,902 +35.046.131
64.595,41;+34.532.167
89,595.936 +22.881.528
55,073.917 +20.550.863
68.117.''' +19.265,000
83.940,110 +19.467.000
42.761.1s 1 +11.396.000
The net balance on our foreign trade for 1930, on
account of the merchandise movement, as well as
that of gold and silver, was somewhat reduced as
compared with most of the years of the past decade.
The reduction, however, was not as much as might
have been expected, in view of the heavy decline in
values during 1930. These lower values affected
both imports and exports, and this in some measure
saved the day, to far as the net result in the year's
trade balance is concerned. The net balance on
merchandise account was lower than in 1929 and
1928, but was higher than in some of the other years
prior to 1928. For silver, the net movement abroad
added much less to the merchandise account than
in the preceding years, while the net movement of
gold in 1930 on the credit side was very much greater
than for 1929. In the following table we indicate
the balance under each of the different heads, as well
as the final balance for each of the last five years:
TRADE BALANCES FOR CALENDAR YEARS FORE MERCHANDISE
GOLD AND SILVER COMBINED.
Excess of-
1930.
1929.
1928.
1927.
1928.
Mdse. exp_
Silver exp_
782281,000
611.398,000
841.634,000 1,036212,040
819.467,000 819,265.000
680.632.909
820.550.863
377,771,869
822,681.628
Total ___
Gold Ilan--
793,977,000
280.087.000
861,101,000 1,056,177,040
175.066.000 8391,873,000
701.183.772
8.080,995
400,433.497
97.796,2115
Net 070.
513.890.000
888.085.000 1.448.050.040
695.103.677
802.637.292
B Net exports.
Bill Introduced by Representative7McFadden Proposes
Federal Capital Issues Board-Would Pass on
Foreign and Domestic Issues in Excess of $100,000.
The creation of a Federal "Capital Issues" Board with
authority to investigate, pass upon and determine whether
It is compatible with the national interest that there should
be sold or offered for sale or for subscription foreign or
domestic securities hereafter issued by any but a United
States governmental institution, would be Provided in a bill
(H. II. 17185) introduced by Representative McFadden
(Rep.) of Canton, Pa., Chairman of the House Committee
on Banking and Currency, Feb. 19. The "United States
Daily" of Feb. 20, from which we quote, further summarizes
the provisions of the bill as follows:
The Board would have six members under Mr. kfcFadden's proposal, at
least one of whom would be a member of the Federal Reserve Board as well.
It would be the duty of the Board to "investigate, pass upon and determine whether it is compatible with the national interest that there should
be sold or offered for sale or subscription in the United States, any issue
or any part of any issue of securities, foreign or domestic, hereafter issued
by any Government or other body politic, or by any individual, partnership, corporation, or association," except securities issued by the Government of the United States or any corporation in which the United States
or its representatives shall own the entire outstanding capital stock.
The measure would be applicable to issues in excess of $100,000. Action
by the Board would not be construed as approval of the Board or of the
United States of the legality, validity, worth or security of the issues.
FINANCIAL CHRONICLE
1486
[Col. 132.
The Trust Companies in New York and Elsewhere
Continuing the practice begun by us a long time
ag,o, we print on subsequent pages our annual comparative returns of the trust companies in this city
(Manhattan and Brooklyn boroughs) and also those
in Boston, Philadelphia, Baltimore and St. Louis,
bringing down the figures to the close of 1930. For
this city the figures, as far as the liabilities and
assets of the different companies are concerned, are
those furnished to the Superintendent of Banking at
Albany, under his latest call, namely, Dec. 31 1930.
As has been many times pointed out by us, it was the
practice of the New York State Banking Department
for a quarter of a century or more to require reports
for,the closing day of the year, but this was changed
in December 1911 by the then executive head of the
Department, and from that time to 1914 various
dates in December were fixed as the time of the
return, while in December 1915 the last day was
again chosen, but for 1916 the date was dropped back
to Nov. 29, for 1917 to Nov. 14, and for 1918 to Nov.
1; for 1919 the date was fixed at Nov. 12; for 1920,
for 1921, for 1922, for 1923 and for 1924 at Nov. 15;
for 1925 at Nov.14, and for 1926 and 1927 at Nov. 15..
The Superintendent who inaugurated the departure
evidently contemplated that there should always be
a return for some date in December, though the date
was not to be known beforehand.. Succeeding incumbents of the office did not feel bound by any
such rule, but in 1928 the Superintendent once more
returned to the old practice and called for figures
for the closing day of the year—Dec.31 1928—which
practice has been continued in 1929 and n30, so
that our latest figures are for Dec. 31 1930.
In one respect the comparisons with the preceding
year differ sharply from those we have been accustomed to see in our previous annual reviews of the
figures. Prior to 1930 growth and expansion were
the distinguishing characteristics of the returns.
Not so for 1930. The totals are still of huge proportions, whether we deal with the figures for New York
City alone or with those for the whole State. But
they nevertheless show a big decrease from the corresponding totals at the end of 1929. For the entire
State, aggregate resources for December 31 1930
stand at $9,514,738,626, which compares with $10,518,317,251 on Dec. 31 1929, while the deposits Dec.
31 1930 are $6,985,593,186 as compared with $7,897,639,468 on Dec. 31 1929. This shows a reduction
during the 12 months of over a full billion dollars
in the case of aggregate resources and a loss of $912,046,282 in the case of the deposits. A similar shrinkage appears in the case of the totals for the Greater
New York taken by itself, thus showing that the
contraction is the result of 'a falling off in this city,
and that, therefore, it is here where the explanation
is to be sought. Aggregate resources for the trust
companies in the Greater New York are reported at
$7,952,929,451 for Dec. 31 1930 as against $8,988,691,935 for Dec. 31 1929, again showing a decrease
in excess of a full billion dollars, while the deposits
are given as $5,708,466,300 as against $6,639,813,028,
the decrease in this instance being $931,346,728,
which is not greatly different from the decrease
shown for the whole State, including the Greater
New York.
These decreases, however, while very striking, are
wholly without significance as showing the trend
or course of trust company operations. They are
simply the result of one of those striking changes
owing to merger or amalgamation through which a
large banking institution of the first magnitude is
transferred from the trust company category to the
distinctively banking class, for which trust company
history in this State is 60 noteworthy. Sometimes
in this way, through consolidation, a National or a
State bank, because of consolidation, enters the
trust company class, and at other times a trust company passes into the banking class. In the present
instance the Equitable Trust Co. was taken over by
the Chase National Bank, disappearing, therefore,
from the trust company class, and the Interstate
Trust Co. was in like manner absorbed by the Chase
National Bank. This happened on May 31 1930.
What an important effect the disappearance of
these two trust companies from the trust company
list had in diminishing the trust company totals will
appear when we say that on Dec. 31 1929 the Equitable Trust showed deposits of $765,344,701 and
aggregate resources of $1,013,970,798, while the
Interstate Trust Co. showed $60,081,602 deposits,
with aggregate resources of $85,183,447. The elimination of these two companies from the list thus
accounts for the whole of the big decrease in the
general totals, leaving the record of growth established by the trust companies in earlier years unimpaired during 1930, notwithstanding that thin latter
year was a period of great business depression and
financial upheaval. It should perhaps be added that
the Equitable Trust Co. still maintains a separate
existence, notwithstanding its business has all been
transferred to the Chase National Bank, and it
actually does still appear in the trust company list,
though holding merely certain stock and bond invest.
ments and bonds and mortgages, with total resources
of only $3,150,348 on Dec. 31 1930 as against $1,013,970,798 on Dec. 31 1929, as already stated.
We wish again, however, to caution against considering these trust companies as being made up of
institutions doing an exclusively trust business.
And the remark applies with reference to the changes
in the amounts from year to year, or even the changes
between one return and the next succeeding one, or
one immediately preceding. As we have so frequently pointed out, mergers and consolidations
have for a long time been the order of the day
among the trust companies, the same as among the
banking institutions generally, and such mergers and
consolidations have involved not alone the taking
over of one trust company by another. More frequently they have meant the absorption by a trust
company of a National or State bank, and in these
instances, which of late years have become quite
common, the mercantile business of the absorbed
bank has of course been continued by the consolidated institution, even though now it be carried on
in the name of a trust company. As a matter of fact,
in the case of some consolidated institutions, of
FEB. 28 1931.]
FINANCIA_L CHRONICLE
which the Irving Trust Co. of this city is a notable
illustration, so many mercantile banks have been
taken over in the process of bank absorptions that
the operations of the enlarged institution may be
said to consist to a predominant extent of that of
an ordinary bank of loan and discount, rather than
of the class of business which of old was associated
with the name of a trust company.
On occasions it happens, as in the case of the Chase
National during 1930, that a bank, National or
State, will take over a trust company and the trust
company will then disappear from the list, though
cases of that kind are no longer frequent and usually
involve small trust companies of minor consequence.
There !have been instances even of the shifting of
trust companies—and not minor ones at that—from
the trust company designation to the National bank
category and then back again to the trust company
division, at least as far as charter organization is
concerned, though obviously the selection of the form
of organization does not alter the character of the
business. The Irving Trust Co. again comes up
as a case in point.
All this makes it difficult to interpret the changes
from year to year, or when there is steady expansion
to accept such expansion as a measure of the growth
of the pure trust company, operating within distinctly trust company lines. Palpably enough, the
increase just as likely may have occurred in the
ordinary mercantile banking business or have followed from the taking over of business of that kind
through merger and absorption.
Of course during 1930 there were other trust company mergers besides the Equitable and the Interstate, the effect of some of which was to diminish
the trust company totals and of others to increase
these totals, and of still others to make no change
at ell, since it involved a combination of one trust
company with another. An instance of the lastmentioned kind was the merger of the Pacific Trust
Co. with the Manufacturers' Trust Co. under the
title of the latter, effective June 27 1930. Among
the companies which disappeared from the list may
be mentioned the Murray Hill Trust Co., which was
merged with the Bank of America on Feb. 15 1930.
This company on Dec. 31 1929 had shown $9,548,499
deposits and $14,056,667 aggregate resources. The
Fidelity Trust Co. has also disappeared from the
list, but is now represented by the Marine Midland
Trust Co. of New York, its name having been
changed to the latter, after its acquisition on April 6
1930 by the Marine Midland Corp.; Fidelity Trust
Co.stock was then exchanged on a basis of 1% shares
of Marine Midland for each share of Fidelity Trust
when accompanied by one share of Fitrust Corp., the
securities affiliate. The Sixth Avenue Bank was
on Feb. 14 1930 merged with the Underwriters'
Trust Co. under the name of the latter. In December
1930 the Eastern Exchange Bank and the Union
Bank of Bronx County were also merged in the
Underwriters Trust. On December 31 1929 the three
banks referred to had a total of $7,290,200 of
deposits, with aggregate resources of $9,321,600.
Another consolidation was that of the Plaza Trust
Co., the Park Row Trust Co., and the Broadway
National Bank, under the name of the Broadway &
Plaza Trust Co., effective Sept. 29 1930. The Park
Row Trust Co. was the company formed by a group
of directors of the Plaza Trust Co. to take over what
remained of the Clarke Brothers Bank which failed
1487_
in June 1929. In Brooklyn the Brooklyn Trust Co.
on Jan. 20 1930 took over the Guardian National
Bank and the State Bank of Richmond County
(Staten Island); the two banks referred to on Dec.
31 1929 had combined deposits of $6,515,200 and
combined resources of $7,602,600. The Globe
Bank & Trust Co. on May 31 1930 took over the
Rugby National Bank of Brooklyn, which on Dec. 31
1929 had $1,155,500 of deposits and $1,440,800
resources.
The Chelsea Bank & Trust Co. closed its doors
on Dec. 23 1930; on Dec. 31 1929 this company reported $19,775,545 of deposits, with total resources
of $26,088,222. The International Germanic Trust
Co. on Jan. 21 1930 changed its name to the International Trust Co. Among the companies added to
the trust company list during the year were the
American Express Bank & Trust Co., which began
business on April 15 1930, and for Dec. 31 1930
reported $10,000,000 capital, with $5,400,560 surplus
in profits and $24,361,270 of deposits; the Banco di
Napoli Trust Co., which began business May 24 1930,
and at the end of 1930 showed $1,000,000 capital,
$700,000 surplus and profits, and $8,244,620 deposits; the Fiduciary Trust Co., which began business in December 1930, with $500,000 capital and
$503,391 surplus in profits, but no deposits, and the
Hellenic Bank Trust Co., which began business Feb.
10 1930, and at the end of 1930 showed $1,000,000
capital, $506,543 surplus and profits, and $2,150,621
of deposits.
Large capital increases were also a feature of the
year. Among these may be mentioned an increase
on July 3 1930 of the capital of the Corn Exchange
Bank & Trust Co. from $12,100,000 to $14,000,000;
that of the Chemical Bank & Trust Co., which on
Sept. 12 1930 raised its capital from $15,000,000 to
$21,000,000; the Fidelity Trust Co., which as, a
result of the changes noted above, on July 1 1930
increased its capital from $6,000,000 to $10,000,000;
the Underwriters' Trust Co., which on Feb. 14 1930
increased from $1,000,000 to $1,675,000; in Brooklyn
the Brooklyn Trust Co., as a result of the absorptions already mentioned, increased its capital on
Jan. 20 1930 from $8,000,000 to $8,200,000, and the
Globe Bank & Trust Co. on May 31 increased from
$1,250,000 to $1,525,000.
Outside of New York there were also a number
of mergers. On May 31 1930 the Utica National
Bank & Trust Co. was merged with the Citizens'
Trust Co. under the title of the latter. On May 23
1930 the Power City Bank of Niagara Falls was
converted into a trust company under the title of
the Power City Trust Co., and in July 1930 took
over the Niagara Falls Trust Co. On Sept. 30 1930
the Genesee National Bank of Buffalo was merged
with the Commercial Trust Co. of Buffalo. On
June 14 1930 the Livingston County Trust Co. was
consolidated with the Genesee Valley National
Bank, both of Geneseo, N. Y., under the title of the
Genesee Valley National Bank & Trust Co., and disappeared from the trust company list. The American National Bank & Trust Co. of Mount Vernon,
after changing its name to the American Bank &
Trust Co., was merged with the Mount Vernon Trust
Co., the merger being approved on July 2 1930 by
the New York State Banking Department. The
capital increases and the new companies organized
during 1930 outside of Greater New York are shown
in the tables which follow:
FINANCIAL CHRONICLE
1488
CAPITAL INCREASES IN NEW YORK STATE OUTSIDE GREATER
NEW YORK,
Name.
Date.
Buffalo—
Commercial Trust Co.of Buffalo Sept.30 1930
Clyde—
Citizens Trust Co. of Clyde..
Lockport—
Lockport Exchange Trust CoMount Vernon—
Mount Vernon Trust Co
Niagara Falls—
Power City Trust Co
1930
July
New Rochelle—
Huguenot Trust Co
Ogdensburg—
Ogdensburg Trust Co
Oyster Bay—
North Shore Bank Trust Co_
Patchogue—
Citizens Trust Co
Rochester—
Sept. 1930
Union Trust Co
Utica—
May 31 1930
Citizens Trust Co
Watertown—
Northern New York Trust Co_
Old
Capital.
New
Capital.
8
1,000,000
$
1,250,000
Amount of
Increase.
8
250,000
50,000
100,000
50,000
300,000
400,000
100,000
1,000,000
1,500,000
500,000
1,012,500
4,000,000
2,987,500
350,000
450,000
100,000
400,000
800,000
200,000
100,000
125,000
25.000
100,000
200,000
100,000
4,000,000
5,000,000
1,000,000
1,250,000
1,825,000
375,000
400.000
800.000
200,000
CAPITAL DECREASES IN NEW YORK STATE OUTSIDE GREATER
NEW YORK.
Name.
Date.
Old
Capital.
$
1.000,000
Utica—
Utica Trust & Deposit Co
New
Capital.
$
500,000
Amount of
Decrease.
$
500,000
NEW COMPANIES IN NEW YORK STATE OUTSIDE GREATER
NEW YORK.
Name.
Binghamton—
Citizens Trust Co
Endicon—
Endicott Trust Co
North Tonawanda—
Union Trust CO
Westbury. L. 1.—
Bank of Westbury Trust Co----
Captlat.
Surpitts &
Proftto.
Deposits.
Began
Business.
8
250,000
$
162,585
Last Report.
$
2,789,245 Dec. 31 1930
4,014,030 Dec. 31 1930
100.000
338.393
250,000
81,812
1,231,254 Dec. 31 1930
100.000
163,170
2,231.649 Dee. 31 1930
NEW YORK STATE.
Clangs of Tislo.
State Bank of Endicott, N. Y., changed its name to the Endicott Trust Company
on March 1 1930.
The capital of the trust companies had been
steadily increasing in all recent years up to 1930,
when the Equitable Trust Co. and the Interstate
Trust Co. dropped out, with the effect of heavily
reducing the total. For the Greater New York the
total stood at $104,700,000 on Nov. 12 1919, $116,983,300 Nov. 15 1920, $125,500,000 Nov. 15 1921,
$127,600,000 Nov.15 1922,$159,000,000 Nov. 15 1923,
$163,000,000 Nov.151924,$169,500,000 Nov.141925,
$193,050,000 Nov. 15 1926,$224,700,000 Nov.15 1927,
$266,830,000 Dec. 31 1928,$437,688,700 Dec.31 1929,
with a drop to $389,900,000 on Dec. 31 1930.
A better measure of the changes in the operations of the
trust companies is afforded by the totals of the deposits,
but as a matter of fact all comparisons for 1930 are disturbed by the disappearance of the Equitable Trust Co.
from the list. As already noted the amount of this item for
the Greater New York, for Dec. 31 1930, is $5,708,466,300
which compares with $6,639,813,028 Dec. 31 1929, but with
$5,037,683,910 Dec. 31 1928. For Nov. 15 1927 the figure was
$3,809,385,206 and for Nov. 15 1926 $3,090,619,710. On the
other hand, in the year ending Nov. 14 1925 the deposits
showed an actual falling off in amount of $63,170,251, though
the elimination of the Metropolitan Trust Co. from the list
at that time was responsible for $48,803,080 of that loss.
As pointed out in previous reviews, in 1920 and 1921 the
trust companies, like the mercantile banks, had their
deposits drawn down under the influence of business depression, credit restriction and price deflation. On the other
hand, in 1922, 1923 and 1924 the trust companies no less
than the banks enjoyed renewed growth in their deposits
with the return to normal conditions. And, as a matter of
fact, the fluctuations in the Items referred to in the case of
the trust companies always correspond quite closely with
the fluctuations in the same items in the case of the banks.
The business of the two classes of institutions is becoming
more or less similar, at least in this city. In addition the
deposits have grown by reason of the absorption of so many
large banks, this movement having been particularly noteworthy in 1929 as noted by us at the time. In other recent
years, however, there have also been important amalgamations of trust companies with banks, and in such instances
the consolidated institution of course has continued both the
[VoL. 132.
former mercantile business and the trust company work. In
some of these amalgamations the result has been as explained above to transfer a bank to the trust company list,
the charter of the bank being surrendered and the charter of
the trust company retained, while in other cases, the effect
has been to transfer a trust company to the bank group, the
charter of the trust company being given up. The trUth is,
as a consequence of such combinations there was so much
shifting from the trust company list to the bank group, and
vice versa, in these earlier periods, that comparisons between one date and another over a series of years was considerably disturbed.
For the Greater New York aggregate deposits between
Nov. 12 1919 and Nov. 15 1921 fell from $2,443,087,071 to
$2,001,080,342. By Nov. 15 1922 the amount was back to
$2,208,982,617; for Nov. 15 1923 it was up to $2,486,238,620,
or larger than before; by Nov. 15 1924 it had risen to $3,031,376,388, but by Nov. 14 1925 had dropped somewhat lower to
$2,968,206,137; on Nov. 15 1926 it moved up to $3,090,619,710,
for Nov. 15 1927 it rose to $3,809,385,206, the exceptional
extent of the increase being due to the taking over of extensive amounts of banking business through mergers, while
for Dec. 31 1928, the total was $5,037,683,910 and for Dec.
31 1929 was up to $6,639,813,028, but now for Dec. 31 1930 is
back to $5,708,466,300.
For the whole State the deposits of the trust companies,
after having fallen from $2,885,355,813 Nov. 12 1919 to
$2,672,289,441 Nov. 15 1920, and then to $2,497,547,429
Nov. 15 1921, on Nov. 15 1922 got back to $2,770,799,561, for
Nov. 15 1923 were up to $3,090,947,512, for Nov. 15 1924
Jumped to $3,743,655,185, for Nov. 14 1915 stood at $3,767,251,862, for Nov. 15 1926 increased to $4,030,384,615, for
Nov. 15 1927 to $4,874,663,685, for Dec 31 1928 to $6,211,295,841, and for Dec. 31 1929 took a leap to $7,897,639,468,
but now for Dec. 31 1930, is down to $6,985,593,186.
The Item of surplus and profits which in 1921 showed
some shrinkage (owing, no doubt, to diminished profits as
well as the charging off of heavier losses than usual), made
new high record totals each year thereafter, until 1930, with
a comparatively small falling off even in that year, notwithstanding the dropping out of the Equitable Trust. It should
be understood, however, that the increase does not in its
entirety reflect accumulation of surplus earnings. In part it
has followed from the selling of new stock at a premium and
in part from the taking over of big mercantile banks. Surplus and profits for the trust companies in the Greater New
York stood at $835,081,347 Dec. 31 1930 against $884,410,092
Dec. 31 1929; $485,139,692 Dec. 31 1928; $346,909,297 Nov.
15 1927; *281,150,160 Nov. 15 1926; $237,865,765 Nov. 14
1925; $219,006,842 Nov. 15 1924; $202,022,101 Nov. 15 1923;
$197,338,717 Nov. 15 1922; $175,565,266 Nov. 15 1921; $187,349,468 Nov. 15 1920, and $179,326,098 Nov. 12 1919. For the
whole State, including the Greater New York, the surplus
account (with all undivided profits) Dec. 31 aggregated
$968,036,395 or twice the capital of $461,325,000. This compares with $1,012,017,720 Dec. 31 1929 but $581,394,018 Dec.
31 1028; $424,247,856 Nov. 15 1927; $346,840,350 Nov. 15
1926; $288,624,503 Nov. 14 1925; $20,732,250 Nov. 15 1924;
$242,049,428 Nov. 15 1923; $235,322,994 Nov. 15 1922; $209,223,775 Nov. 15 1921; $219,945,439 Nov. 15 1920, and $211,441,830 Nov. 12 1919.
The trust companies are not engaged in borrowing to any
great extent, notwithstanding that they have absorbed so
many large banks. For all the trust companies in Greater
New York the total of the bills payable outstanding Dec. 31
1930 was $19,099,327, with $1,931,000 rediscounts. This
compares well with $80,050,058 of bills payable and $1,090,000 of rediscounts on Dec. 31 1929; with $93,031,104 of bills
payable and $380,000 of rediscounts on Dec. 31 1928; with
$24,922,495 of bills payable and $1,134,750 of rediscounts
Nov. 15 1927; with $27,608,314 bills payable and $400,000 of
rediscounts on Nov. 15 1926; with $18,993,654 of bills payable with no rediscounts on Nov. 14 1925; with only $2,758,406 the total of the bills payable and rediscounts Nov. 15
1924 and with $16,981,613 Nov. 15 1923; $9,281,621 Nov. 15
1922; $35,631,000 Nov. 15 1921; $242,934,456 Nov. 15 1920,
and $230,815,610 Nov. 12 1919. For the whole State the
total of the two items Dec. 31 1930 was $32,726,238 against
$103,334,315 Dec. 81 1929; $133,336,624 Dec. 31 1928; $44,576,786 Nov. 15 1927; $43,309,209 Nov. 15 1926; $42,876,978
Nov. 14 1925, and $10,488,998 Nov. 15 1924. The acceptances
FEB. 28 1931.]
FINANCIAL CHRONICLE
1489
outstanding, however, are Steadily increasing and amounted years, as would be expected from the inclusion of so many
(for the whole State) to $474,575,822 Dec. 31 1930; with large banks. The amount due from the Federal Reserve
$393,218,168 additional representing bills purchased and Bank of New York, less offsets, combined with the amount
sold with endorsement. This compares with $653,634,421 due from approved reserve depositories, less offsets, aggreof acceptances Dec. 31 1929; $402,809,136 Dec.31 1928; $285,- gated for the trust companies of the Greater New York on
189,377 Nov. 15 1927; $198,617,094 in 1926, $184,041,566 in Dec. 31 1930 $671,868,304 against $646,291,898 Dec. 31 1929;
1925, $163,450,398 in 1924, $147,329,908 in 1923, and $111,- $482,810,415 Dec. 31 1928; $394,954,589 Nov. 15 1927; $321,081,592 in 1922.
400,741 on Nov. 15 1926; $321,196,215 Nov. 14 1925; $338,Turning now to the assets, the collateral loans still con- 428,608 Nov.15 1924; $260,735,096 Nov. 15 1923; $243,672,704
stitute the largest single item among the investments of the Nov. 15 1922; $234,304,212 in November 1921; $196,965,929
trust companies, but naturally for 1930, with the Equitable in November 1920, and $238,737,114 in November 1919.
Trust out, show a considerable decrease. Such loans have
The trust companies never held large sums of cash in
always been a favorite form of investment with these insti- their own vaults, and the holdings of "specie" by the
comtutions, and the high interest rates obtainable for most of panies in the Greater New York on Dec. 31 1930 were only
1929 made them especially inviting in that year. For the $8,692,655 against $9,200,435 Dec. 31 1929; $6,60,753
Dec.
Greater New York the aggregate of these loans fell from 31 1928; $4,937,016 Nov. 15 1927; $4,026,528 Nov. 15
1926;
$1,115,503,148 Nov. 12 1919 to $896,288,916 Nov. 15 1920, and $3,637,699 in November 1925; $3,493,095 in November 1924;
further declined to $744,386,339 Nov. 15 1921, but recovered $3,460,696 in November 1983; $4,000,736 in November 1922;
to $846,437,293 Nov. 15 1922, to $859,511,995 Nov. 15 1923, $5,233,340 in November 1921; $8,877,761 in 1920, and $11,rose to $1,202,283,870 Nov. 15 1924; to $1,267,717,424 Nov. 138,921 in 1919. In addition, the companies of the Greater
14 1925; to $1,239,113,920 Nov. 15 1926; to $1,511,817,492 New York reported $62,585,132 of "other currency authorized
Nov. 15 1927; to $2,026,737,277 Dec. 31 1928; to $2,627,- by the laws of the United States" on Dec. 31 1930, against
281,412 Dec. 31 1929, and now for Dec. 31 1930 is $2,199,- $40,740,021 Dec. 31 1929; $27,823,129 Dec. 31 1928; $22,907,922. For the whole State the amount Dec. 31 1930 is 709,275 Nov. 15 1927; $20,031,065 in 1926; $23,823,016 in
$2,635,933,130, which compares with $3,094,294,099 Dec. 31 1925; $18,279,919 in 1924; $23,795,804 in 1923; $17,851,658 in
1929, but with $2,435,227,526 Dec. 31 1928; with $1,813,- 1922; $17,704,536 in 1921; $19,419,590
in 1920,and $23.315,808
150,860 Nov. 15 1927; with $1,491,410,495 on Nov. 15 1926; in 1919. The remaining cash items, viz.: "exchanges
and
with $1,470,452,312 in 1925, and $1,354,727,295 in 1924. It checks for next
day's clearings and other cash items," aggreIs the bill holdings, however, that have increased most, and gated $911,766,964
Dec. 31 1930 against $1,374,765,856 Dec.
the absorption of so many banks with a large banking busi- 31 1929; $1,089,128,075
Dec. 31 1928; $443,194,609 Nov. 15
ness of a strictly commercial nature is mainly responsible 1927; $294,989,498
Nov. 15 1926; $103,511,447 Nov. 14 1925;
for this. The designation of the item in the statement given 8141,416,08
Nov. 15 1924; $260,573,825 Nov. 15 1923; $164,out by the State Banking Department is "Loans, Discounts 352,748 Nov.
15 1922; $146,059,871 in 1921; $167,713,628 in
and Bills Purchased Not Secured by Collateral," and the 1920, and $105,552,258
in 1919.
aggregate amount for the trust companies in Greater New
In the foregoing we have been dealing with the trust
York for Dec. 31 1930 is reported at $1,314,229,293 against companies
as a whole. As far as the separate companies
$1,825,671,999 Dec. 31 1929; $1,064,089,284 Dec. 31 1928; are concerned, the elaborate statements
on subsequent pages
$955,069,496 Nov. 15 1927; $726,280,962 Nov. 15 1926; $668,- will enable the reader to ascertain what
the experience
845,396 Nov. 14 1925; $626,887,758 Nov.15 1924; $620,301,146 of each company has been as between
1928 and 1930. To
Nov. 15 1928; $448,204,530 Nov. 15 1922; $486,467,500 Nov. furnish a sort of general survey
we introduce here the fol15 1921; $646,822,007 Nov. 15 1920, and $479,327,753 Nov. 12 lowing table comprising
all the separate companies in the
1919. For the whole State the amount Stands at $1,609,- Boroughs of Manhattan
and Brooklyn, and showing the
995,949 Dec. 31 1930 against $2,171,780,867 Dec. 31 1929; deposits on Nov. 25 1921, Nov. 15 1927, Dec. 31 1928,
Dee.
$1,378,006,520 Dec. 31 1928; $1,240,097,560 Nov. 15 1927; 31 1929, and Dec. 31 1930.
$998,111,748 in 1926; $880,261,088 in 1925, and $810,321,168
DEPOSITS OF NEW YORK CITY TRUST COMPANIES.
In 1924.
The stock and bond investments constitute another very
Borough of
Dec. 81
Noe. 15
Noe. 15
Dec. 81 I Dec. 31
Manhatt0n.
1921.
1927.
1928,
1929.
1930.
large item, and these increased further in 1930 notwithAmer Exp Bk
I
S
$
$
$
$
standing the disappearance of the Equitable Trust. The
& Tr Co 27
24,361,270
15,448.678
53,536,3
aggregate for the companies in the Greater New York on Amezli1110-111164.586.300 68,998.1
(m)
Anglo-Ron.
Dec. 31 1930 was $1,354,404,084 which compares with $1,162,- BkAmer. Tr 2
11.271,812 12,627.700
12.503.7
6,467,598
of Athens
677,244 Dec. 31 1929; $766.245,114 Dec. 31 1928; $735,902,221
Trust Co_f
2,952,656
4,498,600
5.701.700
6,893,922
Coro
Nov. 15 1927; $653,013,089 Nov. 15 1926; $639,092,695 Nov. Banat
Stara Tr.3
11,723.877
18.276,100 25,291,100
15,458,519
di
14 1925; $761,457,826 Nov. 15 1924; $578,844,733 Nov. 15 Banco
Napoli Tr
Co
(28)._.
1923, $607,744,730 Nov. 15 1922; $480,806,007 Nov. 15 1921;
8,244,620
Banco di Elicit
$460,767,809 Nov. 15 1920, and $570,213,964 Nov. 12 1919.
Trust Co-4
13,543,037
14.286,300 14.089,8
11.795,611
Rankers
638,488,081
For the whole State the total Dec. 31 1930 was $1,726,838,247 Bk of Manh 380.432,276 489,109.339 585.642,400 808,094
Tr Co (26)
397.094
489.093,737
against $1,454,215,758 Dec. 31 1929; $1,063,311,071 Dec. 31 flank
of N.Y.
1928; $1,054,028,580 Nov. 15 1927; $932,691,071 Nov. 15 1926; Bk&ofTrust Cow
103.462.374
. 110.222.743 161,238.900 128.953
Europe
Trust Co.g
$921,557,895 Nov. 14 1925, and $1,037,185,829 Nov. 15 1924.
13,473,200
14,630,358 16,891,160
13.730.997
Cent Mercan
The real estate held does not ordinarily vary greatly from
Bank & Ti
50,948,331
(5)
(5)
(5)
Cent Hanover
year to year, but increased heavily in 1929 and 1930; for
Bk & Tr Co
598,326.400 880,778.800
k __ t
the companies in Greater New York the total Dec. 31 1930 Central_
Union Tr 1198.636,1:286,522.621 297.398.100
(k)
(k)
lbcch
was $141,695,764 against $129,097,078 Dec. 31 1929; $69,248,- Chelsea
Ilk & Tr Co
(13)
000 Dec. 31 1928; $56,189,912 Nov. 15 1927; $42,440,287 Nov.
(13)
19.775.
Chem Bk &
15 1926; $40,530,591 Nov. 14 1925; $46,500,246 Nov. 15 1924;
Tr Co (18)
337,471,
357,250,691
Bk Farm
$81,050,870 Nov. 15 1923; $48,900,549 Nov. 15 1922; $45,- City
'Fr Co (19)
50.403,500 49,216,358
Trust
975,995 in November 1921; $45,052,851 in November 1920, City
Co (12)(12)
7.481.900
(12)
Commercial
(c)
(e)
(c)
7.284,656
(e)
and $44,703,110 in November 1919. The amount of bonds Cont.
Bk & Tr
Co(22),....29.771,200 24.903,774
and mortgages owned has heretofore changed comparatively Corn
Ex Bk
Tr Co (14)
little from year to year, but during the last few years has
259,592,
248.209,247
Clinton
substantially increased, the total for Dec. 31 1930 for the
Co (15) 604,500
1,336.811
TrCoI
trust companies of the Greater New York being $163,057,041 County
of N Y.i_J
10.079.010 21,785.900 29.019,900 25.880,019
81,328,422
47,160.104 67.409,578 78,825,700 90.031.7
against $104,087,687 Dec. 31 1929; $121,360,951 Dec. 31 1928; EtaPita—
Equitablefil) 206,458,795 408,373,948 530.843,90 0 765.844.700
91.194
$112,573,510 Nov. 15 1927; $117,296,925 in November 1926; FarmersLoan
& Trust
(19)
(19)
134,064,853 157.324,958 191,282,400
$89,053,572 in November 1925; $76,177,295 in November 1924; Fidelity Tr.1 21.127.163 64,431.362 60.671.300 53.324,500
Marine Mid$73,340,718 in November 1923; $55,660,8011n November 1922;
land Ti Co
83.455.491
Fulton
8,814,322 18,061,095 17,046.800
16,949.100
18.257.668
$60,374,001 in November 1921; $58,694,686 in November 1920, Federation
Bk & Tr.'.
17,937,102 18,304.000 17,461.100
15.846.400
and $60,599,653 in .1919.
Guaranty(17) 430,834.259 609,963.521 836,505,800 1,300.324,
1,331,709,896
1311k
The reserve held by the trust companies with the Federal Hellenic
Tr Co (29)
2,150,621
Reserve Bank has increased heavily during the last few Hibernia
Co (16)_..I
13,398.400 ,12,408.357
FINANCIAL CHRONICLE
1490
DEPOSITS OF NEW YORK CITY TRUSI' COMPANIES.
Borouah of
Manhattan
Nov. 15
1921.
Nov. 15
1927.
Dec. 31
1928.
Dec. 31
1929.
Dec. 31
1930.
(d)
(d)
(d)
(d)
7,007.493
Hudson
Internet Ace
(o)
17.118,600
(0)
9.780,866
Trust._.o
Intermit Ger(6)
15,654,5%
13,679,300
3,608.989
manicTr(6)
Internat'l Tr
10,194.244
Co (q)_ _
(b)
Am Exchange
Irving Tr
83,2.58.238 }574,573,141 732,029,300 654,407,200 618.804,153
Italian Disc't
(3)
(D)
(P)
& Trust__p
12,044,482
(0)
Interstate
60,081.600
(a)
48,7130.100
25,370,363
Trust a
Int :Madison
Bk & Tr Co
7,479,903
9,642,600
(20)
Lawyers'
24,053,187
21,866,700
26,575,300
22,703,328
) 17,167,726
Trust
Home
(u)
(u)
(u)
Lincoln
(u)
25,773,985
(,)
(•)
(7)
18,437.450
(v)
Morel° Tr._ _
(n)
(n)
(n)
(n)
27.779,992
Metropolitan
Murray Hill
(y)
9.548,500
11,466.400
6,310,764
Trust Coy
N Y Life Ins
(NO
(w)
(w)
(w)
24.962,284
Trust
305,927,500 325.010,943
New York.. 160,065.302 247.530,080 394,823.200
Pacific Coast
(7)
20,456,400
23,156.400
8.217.475
Tr Co (7).
Broadway&
7.217,519
3,956,300
3,978,20
Plaza Tr(9)
J Henry
Schroeder
3,509,031
1.221,900
Tr Co (23)
State Bank &
(11)
(11)
109,362.900
Tr Co (11)
Terminal Ti
(q)
(q)
(q)
4,968,148
Co
Times Square
2,165,912
4.314,900
5.581,100
7,201,201
Trust Co _z
45,714,307
47.603,600
51.884.800
48,451.107
34,305,535
Title Gu
Trust Co of
3,410,110
4.693.900
5.691,700
3,965,505
N.A.. NY.
Underwriters
10.184.754
1,290,400
Tr Co (25)
(18)
(18)
75.057.000
69,098.742
U.13.51 tg.&T. 52,019.127
58.077.210
72.114.000
72.235.800
64,833,926
52,119.108
United States
1,860,219m] 3.468,889.315 4,530,628,5006.078,995,60,15.306.883.516
Total_ a_
Borough of
Brooklyn
Brooklyn(8)_
Globe Bk &
Tr Co (24)
Kings County
Manufaet'reCitizens_e_
Mldwood S.
Municipal Bk
&TrCo(10)
People's__ _ _ _
Total
78,627,000
122.437.000
131.883,043
30.404.5411
30,167.900
10.427,700
30.485.50 ,
8,118.268
31,269,184
41,809,290 238.625,370
11.291,96/
1.308,694
319,165,900
12,584.100
386,974,8011
10.491,900
219,450.274
10,831,090
34,058,891
23,289,374
40,415.092
140.861,311
60,174.011
(h)
340,495.891
66.509,500
(h)
507,054.400
(10)
(h)
569.816,9011
(10)
(h)
401,577.859
Total Greater
6,375
New York_ 2.001.030,342 3.809.385.20) 5.'037.682.901,4.639,812,0805,708,46
of 605.765
a Corporat on Trust Included in total for all the years; had deposits
on Dec. 31 1930.
York
New
of
Broadway
with
consolidated
was
b Flatbush Trust of Brooklyn
to Irving Trust Nov -10 1917
City March 6 1912. The isrotid),ay changed title
In March 19121 On
Irving
with
consolidated
National
Fulton
&
and Market
Irving National Bank and Ale
APril 19 1920 the Irving Trust wits merged in the
Trust Co
appeared from the trust company list On Feb. 7 1023 the Columbia the Irving
Devouring
Institution
new
the
Bank,
the
irviti4
with
was consolidated
iist
company
trust
the
iii
Bank-Columbia Trust Co.. and accordingly reappeared the
National Butchers &
A merger of the Irving Bank Colutribia Trust Co. and
211
Sept
became
effective
Cu.
Trust
&
Drovers Bank. under the name Irving Batik
on lire II 1926 with the
1926. American Exchange-PactfIc Bank was merged
Irving Trust Co ,
Exchange
American
if
the
name
under
Co
Jr
Trust
Batik
Irving
and on Feb. 1 1929 returned to Its former title, the Irving Trust Co.
River National Bank after
c Commercial Trust Co. merged in May with the East
See "Chronicle,- page 2536
Brut baying been converted to a natumat bank
of
d Hudson Trust Co. merged on July 9 with the Empire Trust Co. under name
Empire Trust Co.
12 1914,
Bank
Aug.
National
rs'
Manufacture
over
Co.
took
Trust
Citizens
e
West Side Bank, New
becoming Maimfacturers' Trust Co., which absorbed theSept.
1 1921, the North
National Bank
York City, lime 15 1918. the RidgewoodIndustrial
New
York City f)ec. iS
of
Batik
the
1922.
Apr1128
of
Brooklyn
Bide Bank
arid the CommonBank
Standard
1922. the Columbia Bank Aug. 14 1923 and the
National Bank & Trust Co..
Capitol
the
of
Merger
29
1927.
July
of
as
Bank
Wealth
Capitol Nat. Bank &
Longacre Batik and United National Bank into tile United
rs Trust Co. on Jun.
by
Tr. Co. on Mar. 9 1928, and later acquiredBunkManufacture
Co.
Trust
&
State
the
absorbed
1929
28
8 1928. On Jan.
I 1926.
f Bank of Athens Trust Co. began business April
list under the
Bank of Europe on Feb 24 1928 entered the trust company
Co.
Trust
Europe
of
Bank
title of the
Bank became effective
h Merger of the Peoples Trust Co. with the National City
at close of business June 26 1926.
Feb.
23
1926.
business
began
York
New
of
Co.
County Trust
and began business in May 1923
Formerly the Federation Bank of New York
Bank & Trust Co. and began business as a trust
Name changed to the Federation
eompany en Atoll 15 1926.
June 18 1918. Merger with the Hanover
k Central and Union consolidated
the Central Hanover Bank & Trust Co. approved
National Bank under the title of
On May 14 1929.
business Feb. 28 1925 to take over trust businem
I Lawyers Trust Co. began Title & Trust Co.
heretofore done by the Lawyers
271919. absorbed Queens Co. Trust Sept. 1919
Jan.
organised
Trust
m American
into the Bank of Manhattan Trust Co.
and was merged on Nov. 17 1930
1 1925 merged with Chatham & Phenix
March
on
Co.
n Metropolitan Trust
-Phenix National Bank & Trust Co
National Bank, under the title of the Chatham
& Trust Co. organised March 9 1926
Securities
o International Acceptance
l Acceptance Bank. Ins. Name changed to Inter
'end Owned by the Internationaon Jan. 5 1928.
national Acceptance Trust Co.
.ts name to the Discount Na onal Bank and
changed
Trust
&
p Italian Discount
River National Bank as of Feb. 211927.
merged with the Bowery & East
Trust Co. began ()tininess in 1923. Name
-Op
Co
Eng.
Loco.
of
o Brotherhood
as of Sept. 1 1926. and consolidated with the Inter'hanged to Terminal Tntlit Co.
1928; title changed to International Trust
20
Feb.
on
Co.
Trust
national Germanic
Co. on Jan. 21 1930.
1920.
.Began business Sept.
Mechanics & Metals National Bank July 1922.
n Lincoln Trust merged In
May 1 1917, merged in Seaboard National
Mercantile Trust, which began bualness
Bank Aprl 1 1 1922.
Trust merged with Bank of New York. forming
w New York Life Insurance & Sept. 1922.
Bank of New York & Trust Co.
Oct. 14 1926. and,as of the close of business
a Interstate Trust Co. began business
e Bros Bank and merged with the Franklin
Zeno 80 1917. acquired Bloomingdal
with Hamilton National Bank. and on
1928
21
Jan.
on
National Bank. Merged
Bank. On May 31 1930 merged Into the Chase
Aug. 10 1610 with the Century
National Doak,
[VOL. 132.
y Murray Hill Trust Co. opened for business on Sept. 7 1926 and merged into the
Bank of America (N. A.) on Feb. 1.5 1930.
x Times Square Trust Co. began business on Oct. 5 1926.
(1) Coal ,k Iron National Bank merged into the Fidelity-International Trust
Co.; name of latter changed to Fidelity Trust Co. as of Feb. 27 1926; acquired by
the Marine Midland Corp. as of April 16 1930 and title changed to the Marine
Midland Trust Co. on July 1 1930.
(2) Began businesss Dec. 3 1923.
the Security Bank,
(3) Began business June 16 1924 and on June 28 1927 acquired
Absorbed the private banking firm of Di Flesa & DI Seen on Aug. 25 1928
on Aug. 41928,
Bank
Windsor
(4) Began business April 20 1925 and acquired the
(5) Formerly the Central Mercantile Bank and changed to the Central Mercantile Bank & Trust Co. on Be-. 17 1928. Absorbed the business of the Broadway
21
Central Bank on Jan. 10 1027 and merged with the Bank of United States on May
1928 under title of the latter, taking it out of trust company ilst.
Co.
l
Trust
the
Internationa
to
changed
name
1927;
17
(6) Began business on Oct.
Co. below.)
as of Jan. 21 1930. (See Terminal Trust Co. above and City Trust
name changed to Pacific Trust Co. as of
(7) Began business on April 23 1927; Into the Manufacturers Trust Co.
July 25 1929 and on June 27 1930 merged
Mechanics Bank of
(8) Acquired Bank of Coney Island on Jan. 10 1928; the the State Bank of
Brooklyn on Feb. 8 1929, and the Guardian National Bank and
1930.
20
Jan.
on
Richmond County (Staten Island)
1930 merged with the Plaza
(9) Began business Dec. 5 1928 and on Sept. 29
National Bank and Trust Co.
Trust Co., Park Row Trust Co. and the Broadway
Row Trust Co., which began
under title of the Broadway St Plaza Trust Co.; Park
directors of tho Plaza Trust Co.
business on April 7 1930, was formed by a group of in June 1930.
failed
to aequIre the Clarke Brothers Bank, which
changed on Aug. 15 1928. Absorbed
(10) Formerly Municipal Bank; name
was acquired by the Bank of the
Seventh National Bank on Dec. 21 1928. and
1929.
13
May
United States. effective
March 3 1928, and on Jan. 28
(11) Formerly the State Bank. Name changed
Co.
1929 was merged with the Manufacturers Trust
State Bank merged on June 11 1928
(12) Harlem Bank of Commerce and Atlantic
Feb. Ii 1920. reorganized under title of
Under the name of City Trust Co.; failed on
with the International Germania
the Mutual Trust Co. and merged on Aug. 16 1929
Trust Co.
powers and title changed to the
(13) Chelsea Exchange Bank granted trust
on Dec. 23 1930.
Chelsea Bank & Trust Co. on Oct. 23 1929; closed
the Corn Exchange Bank 5c Trust
(14) Corn Exchange Bank changed its name to
Co. on May 21 1929.
(15) Opened for business on Dee. 19 1929.
(16) Began business May 15 1929.
of Commerce on May 61929.
(17) Acquired the National Bank
and the U. S. Mortgage & Trust Co.:
(18) Merger of the Chemical National Bank
Trust Co. above.)
effective June 29 1929. (See Chemical Bank &
with the National City Bank and
affiliated
becaine
(191 Farmers Loan & Trust Co.
Trust Co. on June 28 1929.
title changed to the City Bank Farmers
Co. and the Madison State
Tr.
&
Bk.
(20) Merger of the International Union
Bank on Oct. 31 1929.
the treat charter effective
under
Bank
National
(21) Merger with Seaboard
with the Chase National think under the
Sept. 16 1929: merged on May 31 1930
Co. is an affiliated institution of
Trust
Equitable
Present
National bank charter.
Equitable Trust Branch of the Chase
the Chase National Bank, being known as the
National Bank.
on Nov. 111929,
changed
name
Bank:
1221 Formerly Continental
(23) Began business May 24 1929.
Brooklyn. On May 311030 acquired
of
Bank
Exchange
Giobe
the
Formerly
(24)
the Rugby National Bunk of Brooklyn.
Acquired the Sixth Avenue Bank on
(25) Opened for business Nov. 26 1929.on Dec. 18 1930 and the Union Bank of
Feb. 14 1030; the Eastern Exchange Bank1930.
Bronx County of New York In December
company) continued by the Bank of
(26) Banking business of the (Manhattan
Itlerged with the Central Bank (formerly
Manhattan Trust Co. as of Nov.6 1929.1930: on Nov. 17 1930 the American Trust
the Central National Bank) on June 12 & Mtge. Co., which in turn was owned by
Co.. a subsidiary of the New York Title Bank of Manhattan Trust Co.
the Manhattan Co.. was merged into the
(27) Began business on April 15 1930.
(28) Opened Mr business May 24 1930.
(29) Began business on Feb. 10 1930.
OTHER POINTS.
TRUST COMPANIES AT
s at Boston, Philadelphia,
companie
In the case of the trust
figures as presented on subsethe
Louis,
St.
and
e
Baltimor
institutions are all our own,
quent pages for the different
direct application for them
made
Instance
each
in
we having
instances, where our refew
a
in
to the companies, -though
we have had to have recourse
response,
no
with
met
quests
made in pursuance of calls of the
to official statements
the nature of -things, as we are
In
es.
authoriti
public
companies themselves for the
entirely dependent upon the
an official kind are available,
of
data
general
no
and
figures,
details, such as are
comprehensive totals and elaborate
of New York, are out of the
ons
instituti
the
for
possible
these other centers are such
question. Our summaries for
prepare ourselves and necessarily
as we have been able to
items. Nor are the returns
are limited to a few leading
uniform lines, nearly every comon
cast
instances
in those
method of classification, makpany halving its own distinct
ing general footings out of the question, except as regards
those few common things treated alike by all, and which
have definite, established meanings, such as capital, surplus
and deposits.
Boston trust companies show heavy losses in all the
Items going to make up our record due mainly to the loss
of three of the larger companies: the Old Colony Trust Co.,
capital $5,000,000, consolidated with the First National
Bank; the Beacon Trust Co., capital $3,000,000, merged
With -the Atlantic National Bank, and the American Trust
Co., capital $1,500,000, merged into First National Bank.
These omissions, with an Increase In the Boston Safe
Deposit & Trust Co.'s capital from $1,000,000 to $2,000,000,
account for a drop in total capital from $25,700,000 to
$17,200,000, and in the number of companies reporting from
21 to 18. Surplus and profits were lowered for the reason
above stated from $33,373,351 Dec. 31 1929 to $21,360,438
Dec. 31 1930; deposits from $293,892,920 Dec. 31 1929 to
$207,435,027 Dec. 31 1930, and aggregate resources from
$353,392,375 Dec. 31 1929 to $246,048,257 Dec. 81 1930. Fol.
lowing are the comparisons back to 1900:
1491
FINANCIAL CHRONICLE
FEB. 28 1931.]
Bank in 1868 and changed to a trust company May 1 1930),
capital $400,000; the Natural Bridge Trust Co. (formerly
$
8
$
the Natural Bridge Bank), capital $200,000; the Shaw Bank
89,461,044 108,196,701
10,285,859
Dee. 31 1900 (16 008.)
12,294.798 107,991,782 129.286.581
Dec. 31 1901 (16 cos.)
&
Trust Co. (began business as the Shaw Bank May 5 1923),
15.779,827 116,264,790 143,144,41(
Dec. 31 1902 (18 cos.)
18,629,264 112,281,257 143.010,52(
capital $200,000, and the Tower Grove Bank & Trust Co.
Dee. 31 1903 (19 006.)
19,702.108 139,851.208 172.053,311
Dec. 31 1904 (19 MO
(formerly Tower Grove Bank), capital $500,000. The
20.841,502 148.033.197 181,397,831
Dec. 31 1905(19 cos.)
22,551.499 158,213.825 191.885 069
Dee. 31 1906(18 coa.)
Union-Easton Trust Co., capital $200,000, failed in March
125.254,672
160,704.411
23.699,740
1907
(19
cos.)
31
Dec.
24.610,326 173,765,331 210,125,65(
Dec. 31 1908 (19 005.)
1930
and no longer appears in the list. The National City
25,002,793 186.937.983 224.090.821
Dec. 21 1909 (19006.)
27,349,902 189,153.760 228.753,60(
Dec. 31 1910 (19 005.)
Bank
was consolidated with the Franklin-American Trust
26,234,350 216,926,992 258,248,404
Dec. 31 1911 (19 003.)
28.108,699 207,263,762 251,622,061
Co., the latter increasing its capital from $2,000.000 to
Dec. 31 1912 (21 008.)
29,358.660 213.973.959 260,582,62(
Dec. 31 1913 (23 cos.)
$2,600,000. The Union-Daston Trust Co., capital $200,000,
26,143,017 225.532,137 269.125,151
Dee. 31 1914 (24 008.)
24.261,485 293,833.516 336,704,221
Dee. 31 1915(26 cos.)
failed in March 1930, and no longer appears in our list.
26.174,836 337,625,256 383,460,071
Dec. 31 1916 (29 cos.)
27,419,977 363.551,440 414.609.941
Dec. 31 1917 (29 cos.)
With these changes, 24 institutions are now reported as
29,107,018
415,355.824
466.298.771
Dec. 31 1918 (30 cos.)
33,978,583 503,450.567 560.096,231
Dec. 31 1919 (31 006.)
against 21 Dec. 31 1920, with total capital of $26,700,000
34,573,485 429.925,262 495.145.451
Dec. 31 1920 (28 cos.)
34.983.448 392,924.224 458.840,071
Dec. 31 1930 against $25.000,000 Dec. 31 1929. All other
Dec. 31 1921 (23 Co..)
32,900,905 446,844,659 507,282,281
Dec. 31 1922 (21 cos.)
items
entering into our compilation show increases, surplus
323.701,085
413,589.461
30.089,158
1923
(17
31
Dec.
cos.)
29,719.764 372.741,230 438,755,961
Dec. 31 1924 (17 008.)
and profits from $18,792,155 Dec. 31 1929 to $21,030,288
32,086.404 396.114.507 469,871.201
Dec. 31 1925 (16 cos.)
33,711.924 412.255,145 478,581.531
Dee. 81 1926 (16 cos.)
Dec. 31 1930; deposits from $342,152,127 Dec. 31 1929 to
37,537.669 457.072,002 521.144.381
1)ee. 81 1927 (17 cos.)
42,541,775 487,412.309 533.453.31,
Dec. 31 1928 (17 cos.)
Dec. 31 1930, and aggregate resources from
$355,378,247
33,373,351 293,892,920 353,392,371
Dee. 3111129 (21 008.)
21.360.438 207.435,027 245.048,25'
nee 31 1930 (18 005.)
$372,036,085 Dec. 31 1929 to $403,008,534 Dec. 31 1930.
1901:
In Philadelphia the number of institutions, through many Below is the record by years back to
consolidations, mergers and discontinuance of business, has
Aggregate
Surplus and
RdteliniI.
Deposits.
Profits.
Capital.
ST. LOUIS.
dropped from 66 on Dec. 31 1929 to 54 on Dec. 31 1930.
8
$
$
$
These various changes, too numerous to state here, are
89.829.307
41.339,273
13,425,660 14.471,934
Dec.31 1901(6 cos.)
82.910.106 109,167,449
tabulated in the list below. All the items entering into our Due. 31 1902( 9 cOs.)
20,485.300 24,922,243
82.563.117 107354,100
Dec 31 1903( 8 cos.)
19,000,000 24,915,483
compilation show a considerable falling off as, for instance, Dec
78,796,702 117,214.832
16.000.000 22,507,930
31 1904( boos.)
71,681.442 111,268,041
23,365.609
31 1905( 6 cos.)
16,100,000
capital has been reduced from $81,742,010 Dec. 31 1929 to Dec.
74,512.832 115.189.584
Dec. 31 1906( 9 cos.)
16,350.000 23.584,914
107,028.169
66.329.762
22,537,837
Dec.
31
13,350,000
1907
(
8
cos.)
$68,477,960; surplus and profits from $205,455,959 Dec. 31 Dec.
97.856399
61.619.831
31 1908( 9 cos.)
13,452,400 22.782.021
73.959.732 108,139.489
14,752.400 19,428,356
1929 to $199,120,865 Dec. 31 1930; deposits from $923,- Dee.31 1909 (13 We.)
73.015.086 107.272.961
Dec. 31 1910 (13 cos.)
14.752.000 19,505.474
78.169.009 112,763.151
889,600 Dec. 31 1929 to $896,244,975, and 'aggregate resources Dee 31 1911 (16 cos.)
15.002,400 19,591,743
84.229.211 118,747,034
Dec. 31 1912(15 me.)
14.900.000 19,617,825
from $1,223,597,627 Dec. 31 1929 to $1,160,931,671 Dec. 31 Dec.
83,329.512 117,880.234
31 1913 (18 cos.)
14,950,000 19,600,492
111,765,811
81,741.093
Dee.
31
19.024,203
1914
(16
13,050,000
cos.)
1930. The changes in detail follow:
Dec 31 1915 (14
.8,050.000 *12.738,269 .62.012.906 •94.068.991
CA
COOOW Ca 0,
886.83.88888=M888888888.88888m
obb's'gb'e,b-olm'sb
18-8b. .. 8 8... .
-1
18-P-§-8
.
8.
§.
§.
§•§§1.
.08 .8
Capital.
............ ..
tsZ •-•c0C0
.0000.4-4C0
BOSTON.
Surplus and
Profits.
DeposUs.
Aggregate
Resources.
NEW COMPANIES IN PHILADELPHIA.
Capital.
Media-Sixty-Ninth Street Trust Co.(consolidation of Media (Pa.) Title
& Trust Co. and Sixty-Ninth Street Terminal Title & Trust
5375,000
INCREASES IN CAPITAL OF PHILADELPHIA TRUST COMPANIES.
6826.000 to 8828,330
Adelphia Bank & Trust Co
687,750 to 812,750
County Trust Co
881.818 to 882,250
Industrial Trust Co
2,077,920 to 2,987.920
Integrity Trust Co
500.000 to 1,300,000
Kensington-Security Bank & Trust Co
965.250 to 966.750
Northern Central Trust Co
6,500,000 to 8,232,400
Pa. Co. for Insurances on Lives & Granting Annuities
REDUCTION IN CAPITAL.
6646,720 to 5320,310
Plaza Trust Co.(par value reduced from 510 to 85)
PHILADELPHIA COMPANIES DISAPPEARING FROM TIIE LIST.
Capital.
Aldine Trust Co.(placed in hands of Pa. State Dept. Dec. 28 1930)____ 81.218,182
.300.000
Bank of Philadelphia & Trust Co.(consol. with Bankers Trust Co.)_._
4,876.800
Bankers Trust Co.(voluntarily closed Dec. 22 1930)
3,999,450
Colonial Trust Co.(consol. with Pa. Co. for Ins. on Lives, &c.)
Manufacturers Title & Trust Co.(acquired by Aldine Trust Co. Feb. 28
1,000,000
1930)
Market Street Title dr Trust Co. (consol. with Integrity Trust Co.
1,300,000
Jan. 25 1930)
500,000
Metropolitan Trust Co.(consolidated with Bankers Trust Co.)
Northeast-Tacony Bank dr Trust (consol. with County Trust Co. in
250,000
September 1930)
Northeastern Title & Trust Co. (consol. with Industrial Trust Co.
400,000
Nov. 13 1930)
Sixty-Ninth Street Terminal Title & Trust Co. (consol. with Media
375,000
(Pa.) Title & Trust)
Southwark Title & Trust Co. (absorbed by Commercial Nat. Bank &
Trust Co.)
250,000
Woodland Bank dc Trust Co. (consol. with City Nat. Bank & Trust
Nov. 25 1930)
150,000
OTHER CHANGES. CONSOLIDATIONS AND MERGERS IN
PHILADELPHIA.
Kensington Trust Co.-Consolidated with National Security Bank & Trust Co..
forming the Kensington-Security Bank & Trust Co.
PHILADELPHIA.
Capital.
Surplus and
Profits.
Deposits.
Aggregate
Resources.
Dec. 31 1900 (40 cos.)
Dec. 31 1901 (41 cos.)
Dec. 31 1902 (41 cos.)
Dec. 31 1903 (43 coo.)
Dee. 31 1904 (43 cos.)
Dec. 31 1905 (44 cos.)
Dec. 31 IMO (52 eee)
Dec. 311907 (58 cos)
Dec. 31 1908 (58 cos.)
Dec. 31 1909 (59 cos.)
Dec. 31 1910 (59 cos.)
Dec. 31 1911 (58 00s.)
Dec. 311912 (56 cos.)
Dec. 31 1913 (56 008.)
Dec. 31 1914 (58 coe.)
Dec. 31 1915 (58 cos.)
Dec. 31 1916 (58 006.)
Dec. 31 1917 (54 006.)
Dec. 31 1918 (58 00e.)
Dec. 31 1919 (57 008.)
Dec. 31 1920 (64 0014.)
Dec. 31 1921 (66 006.)
Dec. 31 1922 (69008.)
Dec. 31 1923 (78 006.)
Dec. 81 1924 (81 cos.)
Oen 311926 189 cos) --.
Dee. 81 1928 (88 coda
Dee. 31 1927 (82 00e.)
Dec. 31 1928 (80 006.)
'flee. 311029 (66 cos.)____
.-....- 51 1050 454 cos.)
$
28.399.965
31,927,008
33.142,233
34.320,337
34,800,980
35,312,363
38,931,963
38.727,909
39,068,955
39.897,218
39,931,416
38,511,733
36,797,836
39,162,538
39.069,243
38.870.193
38,879.993
40.579.993
41,307,608
44.142.068
45,338,668
46.098.921
47.554.243
53,525,235
57.839,244
61.440 874
84.812 332
74.735.750
77.808,900
81,742.010
68.477 900
$
27.826.941
33,885.857
37,514,329
30,654,877
42.344,733
45,594,298
49,590,018
50.840,244
52,000.976
55,374.618
59,187,488
62.262,427
64.847,539
65.535.659
65.932,688
69,298.540
73,775,140
77.779,452
78.408.601
81.801.490
87,915.257
91.183.753
88325.428
110,457,810
129.778,397
146,171,713
148.439.275
150.738.418
172.948.116
205,455,959
189.126 865
$
136,496,312
149,137,386
153,151.355
161.231,152
202,855,986
209,213,067
193.283.134
169.689.224
200,983,530
217,196,883
208.837,634
224.225.832
231,712.367
232,941,234
238,256.333
297,235.195
331,108.286
327.597.906
335.093,397
405,373.275
417,307.021
407.600.404
489.308,036
599,915.842
656.621.057
759.772,771
795.589.739
924,937.431
897.508 491
923,889,600
896.244.075
$
198.498.618
218.660.249
227.480.117
238.817.568
283.503.299
293.177.935
288.232.600
265.150.778
298.761.341
316.892.720
311,640.645
328.198.392
337.179.556
341,764,741
347.588.292
407.024.328
444.775.175
452.498.288
505.489.017
578.019.954
591,315.173
561.639.998
635.130.394
771.778.236
859.818.306
960.052.041
1028.146.591
1183.615,797
1241,311.008
1223,597,827
1160 931 071
• Owing to the non-receipt of information for Dec. 31 1929 from the Allegheny
Title & Trust Co. and the Manufacturers Trust Co., we have been obliged to use
last year's figures for these two companies.
The number of St. Louis companies appearing in our record was increased in 1930 by the inclusion of four institutions, the Bremen Batik & Trust Co. (organized as the Bremen
cos.)
91.509,251
70.380.425
Dec.31 1916 (15006.)
8,250.000 12,879,829
98.908.141
79.518.642
Dec. 31 1917 (15 cos.)
8,350.000 12.795,317
Dec. 31 1918 (15006.)
8,350.000 12.909,504 102,137.663 123.397.181
Dec 31 1919 (15 cos.)
8.450.000 13,519.789 121.424,904 153.394,691
Dee. 31 1920 (17 cos.)
9.350.000 14,146,690 125,581,165 145.780.851
Dec. 31 1921 (18 cos.)
x12,450.000 x15,300.040 x154.558.540 2188.171.361
Dec. 31 1922 (17 cos.)
12,650,000 15,662.452 171.019,489 204.152,101
Dec. 311023(17 cOs.)
12.950,000 16.147.139 170.608,193 207.829,421
Dee. 31 1924 (20 cos.)
13,400,000 15.820,518 193.958.238 225.731.881
13.600,000 16.262.278 190.966.610 235.055.641
Dec. 31 1925 (21 094.)
13,950.000 17,542.288 205.474.878 237.884391
Dec. 31 1928 (22 008.)
13.950.000 19,874.590 202.893,571 238.902.731
Dee. 31 1927 (22 005.)
18.700.000 21,447,250 245,452,552 298,258.491
Dec. 31 1928 (21 cos.)
000 18,792,155 342.152.127 372.036.081
tDee. 31 1929 (21 cos.)._ _ _
405 MR 534
5AR 570 247
91 115(1 9R0
25,
naTnnnne.
000.
no..91 1n5n 104 .......s
• Reduction in totals due to the elimination of the St. Louis Union Trust Co..
whose banking business was taken over by the newly organized St. Louis Union
Bank. The trust company reported no deposits on Dec. 311915. against 625,710.275 on Dec. 31 1914 and $11,244,321 aggregate resources Dec. 31 1915, against
836.935,227 on Dec. 31 1914.
I All items heavily increased through the establishment of the Liberty-Central
Trust Co. by the merger of the Central National Bank and the Liberty Bank.
t Owing to the non-receipt of information for Dec. 31 1929 for the Union-Eastern
Trust Co., we have been obliged to use last year's figures.
Quite a few changes have taken place at Baltimore. The
number of companies has been reduced by one-the Continental Trust Co., capital $1,350,000-having, with the Drovers & Mechanics' National Bank, been consolidated with
the Maryland Trust Co., the latter institution increasing
its capital from 81,000,000 to $2,500,000. The Farmers' &
Merchants' National Bank was merged into the Union
Trust Co., the latter also acquiring control of the Monumental City Bank of Baltimore. The Union Trust Co., as a
result, reports an increase in the capital from $1,500,000 to
$2,500,000. This, with an increase in the Safe Deposit &
Trust Co.'s capital from $1,200,000 to $2,000,000, accounts
for an increase in the capital of all the Baltimore trust companies from $17,150,000 Dec. 31 1929 to $19,100.000 Dec. 31
1930. With the transference of the assets of these National
banks to the trust companies through consolidation the
aggregate resources of the Baltimore institution have risen
from $289,334,533 Dec. 31 1929 to $327,102,270 Dec. 31 1930;
deposits from $231,555,199 Dec. 31 1929 to $276,498,10
Dec. 31 1930, and surplus and profits from $27,766,787
Dec. 31 1929 to $31,404,661 Dec. 31 1930. Following is the
yearly record back to 1913:
BALTIMORE.
Capital.
Surplus and
Profits.
Deposit*.
Aggregate
Resources.
Dec. 31 1913 (10 c019.)
Dec. 31 1914 (10008.)
Dec. 31 1915(11 cos.)
Dec. 311916 (11 cos.)
Dec. 31 1917 (11 cos.)
Dec. 31 1918 (11 cos.)
Dec. 31 1919 (12 cos.)
Dec. 31102))(12 cos.)..
Dec. 31 1921 (13 cos.)
Dec. 31 1922 (13 cos.)
Dec. 31 1923 (14008.)
Dec. 31 1924 (14 cos.)
Dec. 31 11125 (13 cos.)
Dee. 3119211 (14 cos.)
Dec. 31 1027 (13 cos.)
Dec. 31 1928 (13 cos.)
Dec. 31 1929 (12 cos.)
Dec. 31 1930 (11 cot.)....
$
8,950,000
8,950,000
8,650,000
8,650,000
8.650,000
8,650,000
9.160,000
10,250.000
10,800.000
11,500,000
13,000,000
13,200,000
13,4150.000
14.950.000
14.950.000
15,300,000
17.150.000
19.100.000
8
12.177,127
11.407,783
11.851,317
12.539.306
12.765.927
13,309,150
14.099,513
14,967,987
15,988,624
17,361,792
19.596.373
20.909,399
21,695.315
24.440,935
25,779.355
28,486,023
27.766,787
31.404.661
5
45,131,061
62,212.492
72,128,718
82,523,300
89.537.806
85.714,838
116,199,900
108,508,855
110,811.291
137,308,934
137,383,255
164,890,478
200.438,939
198.585.429
235,403,813
227,720,059
231,555,199
276 4118 100
$
66,058,188
73,170.115
93.230.098
103.712,606
110,988,411
107,773.988
140,749,413
138.393,143
140,781,858
169,330.708
190.093,117
203.393.122
244.201.207
243,740321
276.383.721
271.793.421
289,334 531
527 1(10'04
1492
FINANCIAL CHRONICLE
[VOL. 132.
Indications of Business Activity
THE STATE OF TRADE—COMMERCIAL EPITOME. stocks of finished cotton goods are small all over the world.
Manchester has had a better trade with India. The vital
, Friday Night, Feb. 27 1931.
There has been some indications of a better business in the question as to the future of prices however, is the size of
Central West and the Far West, but with temperatures the American acreage. As to this it seems reasonably clear
almost springlike over much of the country the trade in it is likely to be reduced sharply, or any rate something
heavy wearing apparel has still lagged. Spring trade, how- like 15 to 20%. The South is short of funds and the banks
ever, has made some gains, though it is more, after all, in and merchants are not minded to encourage big planting of
the matter of sentiment and morale, than in actual transac- cotton after their experience of the past year. It is believed
tions. Special retail sales reveal the fact that stocks of con- that the showing of the Cotton Textile Merchants Assosumers' are at low level. But retailers are still buying very ciation on March 9 for the month of February will be graticautiously. The truth is that the trade of the country might fying even in contrast with the improvement which took
be in very much better shape than it is. For the most part place in January. In other words the sales of standard
winter goods are slow on account of relatively warm weather cloths in February were undoubtedly large and a good inand spring trade is not brisk as yet. Cotton textiles make crease in unfilled orders would not be surprising.
Wheat has declined, with export demand unsatisfactory
as good a showing as anything; in fact better than almost
anything else. The transactions in print cloths, broadcloths and co-operative agencies, it is said, offering hard winter
and sheetings within a couple of weeks show a very gratifying wheat from the Gulf at prices cutting under those for the
total and prices have advanced somewhat. The mills profit Canadian grain. Moreover the Farm Board has announced
margin is still reported to be rather narrow, but the tendency that within the next four months it will sell 35,000,000
if anything is to improve. Some cotton mills are doing the bushels of choice milling wheat to foreign buyers. It has
best business of any time this year. Certain of them at the just sold some No. 1 hard to Antwerp, but apparently to-day
South have adopted night shifts, after having run for a time it did very little. The American visible supply approaches
on full day capacity. In Eastern Texas the new oil boom 200,000,000 bushels. What is to be done about an export
helps retail trade at Tulsa and also the sale of oil well supplies. market in the regular way and apart from Farm Board
Seattle reports lumber output at 40% of capacity. The offerings remains to be seen. July wheat within a week has
output of automobiles in February is larger than that of dropped nearly 4 cents. A beginning has been made in
January. Iron and steel have remained about steady with seeding spring wheat. Corn has dropped 1 to 13c., partly
the steel output 52% against 41 early in January. The under the influence of lower prices for wheat and March and
motor industry has been the best buyer of steel, taking May quotations have dropped to a new low for the season.
mostly sheets and strips. The sales of these items are said A leading drawback was the lack of a sharp cash demand.
to have been the largest of any week since last September. Some are looking now for July corn to drop to a good discount
Business in tin plate and pipe line materials has also in-, under July wheat. Oats declined about I34 to 2c. with
creased. Pig iron's composite price however, remains at stocks liberal and demand slow. At this level of prices,
$15.71, the lowest in 15 years.
however, there is said to be some export inquiry for oats.
The weather in the main has been favorable for the winter Moreover, the same thing is said of rye. Rye prices are
wheat crop. Relatively high temperatures have continued down 1 to 13o., with stocks nearly 3,000,000 bushels larger
to hurt the coal trade. The output of automobiles in Febru- at terminal points than a year ago. Provisions were firmer,
ary is estimated at slightly above 200,000 cars, as against at least as regards lard, which shows a net advance for the
171,903 cars and trucks in January. There is a gain re- week of nearly Mc. But hog prices are down nearly to
ported for January of 10.3% over December, but a decrease the lowest seen for years past. Though supplies are plentiof 373% for January 1931 against January 1930. A strike ful, there is enough speculative demand for lard to more than
in big woolen mills at Lawrence, Mass. took place, and also offset the hedging sales. Sugar has advanced 2 points on
in hosiery and embroidery mills in Philadelphia, but it is March, leaving May and July about where they were a
now stated that the strikers at Lawrence have voted to re- week ago. Trade houses have been stopping notices ranging
turn to work. Wool has been steadier at Boston, especially from 50 to 100 a day, and the tone has been rather steadier,
on the finer grades, with foreign quotations up. Chicago though Cuban interests are supposed to have sold, and at
reports that unit sales of merchandise are fully as large as one time there was danger of acute competition in the rethose of a year ago, though values are lower owing to re- fined sugar trade leading to what is called a trade-war.
duced prices. Minneapolis reports that spring catalogues But it was averted. Coffee has continued to decline in
are helping mail order sales in that territory, prices being ,Brazil and Europe so that New York had nothing to do but
lower. There was a large carryover of salmon on the to follow suit. Rio and Santos futures here have dropped
Northern Pacific Coast despite an active demand at one time. 25 to 50 points, Santos leading the decline. It is remarked
Broad silks had a moderate demand, but raw silk was quiet. that for the first time in several years the premium on the
After recent large sales of woolen and worsted dress fabrics spot month has disappeared and March ended at 7 points
for the spring trade, business has fallen off. At the same under May. Hedging sales against purchases of cost and
time duplicate orders of men's wear spring suitings for freight coffee has been a feature. Nothing new has been
done by the Brazilian Government in the matter of stabilizing
prompt and nearby delivery were numerous.
Cotton has acted very well all the week and the ending prices. Some do not believe that the present Government in
is at a small net advance in spite of some heavy selling of Brazil is inclined to support coffee prices at the expense of
May here, attributed to the Co-operative Associations. the general population. Rubber has advanced 10 points.
There is an idea that the Farm Board is opposed to a sharp It does not seem to rally very easily in the face of liberal
advance in cotton prices at this time as likely to defeat its supplies and no great snap to the consuming demand,
campaign for a drastic cut in the acreage, that is to say, though actual rubber has latterly been firmer. Hides have
20 to 25%. One estimate from Memphis to-day was to the iadvanced nearly Mc. on moderate trading. Cocoa has
effect that the intention to plant is 15% less than a year risen 12 to 17 points. Silk is off 1 to 6 points.
The stock market has been strong. Prices on the 24th
ago. But among the strongest features of the week have
been the rapid rise of prices in Egyptian cotton and the nst. ran up 1 to 93i points to new high levels for the year on
apparently better outlook for peace in India. Yet within trading that suddenly rose to a total of 5,345,710 shares
a day or two the East Indian political outlook has seemingly against 2,633,000 a year ago and 3,736,000 in 1929. Some
clouded over. In any case no settlement has been reached 330 different stocks reached new high territory for 1931 in
in the conferences between the Viceroy of India and the the largest trading in the last four months. The transactions
native agitator, Gandhi. So that the hope of an early ending in 837 issues were on the broadest scale seen in the last two
ticker
of the East Indian boycott which has cost Lancashire so months. Something new, too, was the notice that the
heavily may be disappointing. In the Worth Street district at times in the rush of buying was nearly 10 minutes behind
since the
of this city trading has been on a fair scale; in fact in 48 the trading, the greatest delay that has occurred
year.
last
were
new
installed
Sept.
1st
on
reached
100,000
high
tickers
speed
have
to
said
are
cloths
hours the sales of print
money
pieces with 64x60s 383i inch print cloths quoted at 5M to The curb market was also active and higher. Call
2c. At times there has been a very good business also remained at 13/2% and 60 days, 1% to 1%%. The stock
53'
in sheetings while denims are %c. higher. It is said that market despite some reactions from time to time has in the
FEB. 28 1931.]
FINANCIAL CHRONICLE
main acted very well. To-day there WM some reaction but a
rally came in the afternoon with transactions for the day
3,724,674 shares as against 4,623,239 yesterday and 3,210,000
a year ago. One of the noteworthy things was that the
passage of the Bonus Bill over the President's veto had little
or no effect on prices. The undertone of the market was
considered steady despite some decline ingrain. Some stocks
advanced 2 to 5 points. The market showed poise that was
very encouraging to its friends. Bonds after feeling the
Bonus Bill for a time became firmer with the cheapness of
money acting as a buffer against the Washington legislation.
United States Government issues even advanced. Foreign
bonds continued to rise. Some of them were at new high
levels for the year.
Forest City, N. Y. wired that all textile manufacturing
plants in Rutherford will be running full time within the next
few days and that the spindleage group is already on full
schedule as are mills at Forest City and Cliffside. Many
cotton mills in this country have sold such a large volume of
cloth during the past few weeks that they are now in a
stronger position as to stocks and orders than at any other
time since the spring of 1927 according to the New York
Exchange Service. Total cloth sales during the past few
weeks have been considerably in excess of total production
during the same period, and on some lines of goods they have
been the largest in any such period in several years, with contracts running into the summer. Fall River, Mass. reported that sales were not exceptionally heavy in that market
during the past week, but there was a healthy tone to the
market with increased inquiry, while prices were holding
firm and stocks on hand have been considerably decreased.
Fall River wired Feb.25th that the Legislative bill compelling
textile manufacturers to equip looms operating on two shifts
with pick clocks was lost when the Legislature voted against
it 98 to 53. Lawrence, Mass. wired that the employees of
the three mills of the American Woolen Co. who have been
on strike since Saturday voted Thursday night to return to
work. At Lawrence, Mass. there was a general strike in
three mills of the American Woolen Co.involving more than
10,000 workers. The strikers pressed their cause so vigorously as to prevent the usual operation at the Ayer, Wood and
Washington mills. The strike later was settled.
Charlotte, N. C., reported that there has been more inquiry and a better actual demand for cotton during the
past week than for some time past as the advance in the
market created a better feeling among mill executives who
are hoping that this will be followed by an advance in cotton
goods and yarns. Raleigh, N. C., wired Feb. 23:"A report
by the State Child Welfare Commission, just issued, regarding the employment of women places the number of employed women in the State's industries at 82,167. Of this
number only 5,774 are employed at night. In 1929 the
number of women working at night was 7,439. The 1931
figures show a 22% reduction in such employment in the
two year period." At Spartanburg, S. C., textiles were
looking up. Greenville, S. C., reports evidence of increasing
activity in the southern textile industry is reflected in reports
reaching mill supply dealer of orders placed for new equipment and of proposed undertakings and replacements in the
near future. At Cateechee, S. C., the Norris Cotton Mills
Co. which has been operating on a full day-time schedule
will adopt a night operating schedule also. At Lindale,
Ga., following reduced operations for most of the time since
the Christmas holidays the Pepperell Manufacturing Co.,
Lindale plant, resumed a full time five-day operating schedule on Feb. 23. At Nashville, Tenn., the Walter Fred
Hosiery Mills maintain a full capacity schedule in spite of
business conditions.
At Columbia, Tenn., the local plant of the Washington
Manufacturing Co., formerly the Fly plant, has been put
into condition for resumption of operations. Louisville,
Ky., reported that business continued rather quiet with
wholesale &woods, ready to wear and allied industries.
One leading jobber at least said that seasonable lines were
improving. At Lynchburg, Va., the Lynchburg Hosiery
Mills are operating on a full-time schedule. The other two
units of this company are maintaining a three-day per week
schedule and have since the first of the year. At Corinth,
Miss., the Corinth Hosiery Mills, Inc., will begin operations
as soon as possible. Milwaukee advices state that it is the
opinion of wholesale and manufacturing concerns in the textile
field that business is beginning to show an under-current of
solidity.
The adjusted index of cotton cloth production according
to the "Times" scored a further sharp gain last week, rising
1493
to 83.00from 80.0 the preceding week. For the corresponding
week last year it was 103.0. It now stands at the highest
level since the week ended June 28 1930. The statement
adds that price movements recently have indicated a marked
picking up in the demand for cotton goods and one trade
authority states that print cloths are currently in a very
much stronger position from the standpoint of sales, production, stocks and unfilled orders than in several years past.
Unfilled orders are said to average 10 weeks ahead on the
basis of the present restricted output and stocks on hand
have been reduced to an average of two weeks' output.
Retail food prices in the United States as reported to the
Bureau of Labor Statistics of the United States Department
of Labor, showed a decrease of a little more than 3% on
Jan. 15 1931, when compared with Dec. 15 1930, and a
decrease of about 143% since Jan. 15 1930. The bureau's
weighted index numbers, with average prices in 1913 as
100.0 were 155.4 for Jan. 15 1930, 137.2 for Dec. 15 1930
and 132.8 for Jan. 15 1931. The output of electricity in the
United States last week is said to have increased, although
the usual seasonal movement is downward. The actual
output, according to the National Electrical Light Association amounted to 1,779,534,000 kilowatt hours which compared with 1,741,713,000 for the week ended Feb. 221930.
Manchester advices from Tattersall said: "Demand in the
cloth markets is healthier and a hardening tendency in raw
cotton is bringing out more business in both yarns and piece
goods. Producers are still complaining of difficulty in
securing higher prices. News from India is generally better
and there are more cloth sales for that market in the expectation that the current boycott against British cotton goods will
be shortly abandoned. There are only occasional transactions for the Chinese markets though there is a rather more
active demand for Egypt, South America and the Continent.
Yarns prices have advanced, spinners are selling more of their
product and general prospects continue to be interpreted as
better." New Delhi, India, wirelessed Feb. 24th that
Mahatma Gandhi, has issued an undisguisedly militant
message in his own newspaper, exorting his followers to
maintain a vigorous boycott against foreign cloth which, he
says, is the greatest task before the country. He suggests
that dealers burn foreign cloth or keep it under seal until
home rule is realized when they could claim reparation from
the new Government. This appeal, coming at the very
moment when the peace negotiations are at a most critical
stage scarcely encourage optimism according to the message.
Later advices from New Delhi,India, said that the delay of
the British Government in passing upon the demands of Mahatma Gandhi as presented to the Indian office some days
ago, by the Viceroy, Lord Irwin, has caused a distinct
diminution of optimism, respecting the prospects of settlement of the national conflict. The chief obstacles to an
agreement are said to include Gandhi's demands for unrestncted picketing of stores selling foreign cloth. It was
understood that the Viceroy had received word from London
and would summon Gandhi for a further conference to-day.
Temperatures to-day continued to be somewhat springlike,
touching 41, though at one time they were 31 degrees. The
forecast was for fair and warmer. Within the last 24 hours
Boston had been 34 to 46; New York, 33 to 52; Philadelphia,
34 to 54; Montreal, 22 to 34; Chicago, 34 to 40; Cincinnati,
30 to 48; Cleveland, 30 to 38; Detroit, 30 to 46; Milwaukee,
32 to 46; Kansas City, 46 to 52; St. Paul,30 to 40; St. Louis,
36 to 52; Winnipeg,2 to 24; San Francisco, 52 to 56; Seattle,
40 to 56.
Detroit Employment Gains.
In its issue of Feb. 26 the "Wall Street Journal"reported
the following from Detroit:
Employment index of the industrial department of the Detroit Board
of Commerce on February 15 was 78, compared with 76.5 on January 31
and 106.5 on February 15, 1930.
The index covers two-thirds of the industrial employment in Detroit,
and is based on the monthly average for the years 1923-1925, inclusive,
taken as 100. It is compiled from the number of men on payrolls which
includes both part and full-time workers.
Guaranty Trust Company of New York Looks for Continued Readjustment Which Will Lay Foundation
for Definite Advance in Business Later—Decline
Checked.
Developments of recent weeks have not entirely borne
out the optimistic hopes that were aroused by the industrial
revival of early January, states the Guaranty Trust Co. of
New York in "The Guaranty Survey," its monthly review
1494
[Wt. 182.
FINANCIAL CHRONICLE
articles increased as follows: Cabbage, 16%; hens, 2%; leg of lamb, 1%;
and canned red salmon and bananas less than five-tenths of 1%. The
following five articles showed no change in the month: Vegetable lard substitute, cornflakes, potatoes, onions, and sugar.
Changes in Retail Prices of Food by Cities.
During the month from Dec. 15 1930 to Jan. 15 1931, all of the 51 cities
from which prices are receved showed decreases in the average cost of food
as follows: Boston, 6%; Atlanta, Buffalo, Fall River, Little Rock, New
Co.
Trust
Guaranty
the
Haven, Omaha, Peoria, Portland ,(Me.), Providence. Salt Lake City,
The preliminary index of business activity of
stands at 63.9 for January as against 64.1 for December, remaining prac- Savannah, and Springfield (Ill.), 5%; Birmingham, Cleveland, Columbus,
New York, Philadelphia
tically unchanged for the third successive month. Since the beginning Jacksonville, Los Angeles, Manchester, Mobile,
Charleston (8. C.), Chicago,
of February there has been a good deal of irregularity, with further and Portland (Ore.), 4%; Bridgeport, Butte,
Memphis, Milwaukee.
Louisville,
Houston,
Denver,
others.
in
Cincinnati, Dallas,
seasonal advances in some directions and apparent setbacks
Orleans, Pittsburgh, Rochester, San Francisco,
The most that can be definitely stated at present, therefore, is that the Minneapolis, Newark, New
Baltimore, Detroit, Indianapolis, Kansas City,
decline in business activity has been checked, for the time being at least. Scranton, and Seattle, 3%;
Louis, St. Paul, and Washington.2%.
At the moment, no clear trend is visible. The rate of industrial opera- Norfolk, Richmond. St.
15 1930 to Jan. 15 1931, all of the 51 cities
Jan.
For the year period
tions, aside from seasonal movements, appears to be virtually stationary
showed decreases: Portland (Oreg.), 19%; Detroit, Fall River, Little Rock,
at about the lowest level reached thus far during the current depression.
Los Angeles. Memphis, Omaha, and Peoria, 17%; Atlanta, Buffalo, Butte,
Houston, Indianapolis. Louisville, Milwaukee, Pittsburgh, Providence,
Further Readjustment Probable.
St. Louis, Seattle and Springfield (Ill.), 16%; Boston, Cleveland, Kansas
The indications seem to be that the immediate future will witness a
foundation for City, Manchester, New Orleans, Rochester, Salt Lake City. and Savannah,
continuance of the processes of readjustment laying the
Minneapolis,
15%; Birmingham, Chicago, Columbus, Dallas, Denver,
definite advance later.
St. Paul, San Francisco, and Scranton, 14%;
(Me.),
Portland
Philadelphia,
unstable
home,
at
legislation
Disturbed conditions abroad, uneconomic
Mobile, Newark, New York and
continued mak& Baltimore, Charleston (S. C.), Cincinnati,
commodity prices, slow liquidation of bank loans, and
Richmond, 13%; Bridgeport, New Haven and Norfolk, 12%; and Jacksonas
with
reckoned
be
all
must
industry
and
agriculture
justments in both
depression ville. and Washington, 11%.
deterrent factors, but seem to mark the last phase of the
period.
disappointing.
'The movement of commodity prices has been rather
commodities, notably January Sales of Department Stores in New York
Although advances have occurred in some important
gradually downcotton and copper, the general trend of values continues
Federal Reserve District 7.6% Below Year Ago.
Feb. 16
ward. The wholesale price index of the Guaranty Trust Co. for
The Federal Reserve Bank in its March 1 "Review"
stands at 68.4 as against 66.6 a month ago. Such basic commodities as
the
that "January sales of reporting department stores in
states
wheat, corn, cattle, hogs, rubber, lead, and silk have declined since
the
middle of January. The general level of farm prices on Jan. 15 was
this District were 7.6% smaller than in 1930. Substantial
years.
lowest in exactly 19
continued to be reported in N. Y. City,
The money situation continues to be characterized by extreme ease in decreases in sales
all classes of short-term credit at the principal centers. In many rural Buffalo, Syracuse, Bridgeport, Southern New York State,
districts a very different condition exists, and bank failures are still Hudson River Valley and the Capital District, while the
reported in large numbers, although the state of affairs is apparently less
declines in sales in the other sections of this district were
acute than it was in the closing months of 1930.
of business and financial conditions in the United States
and abroad, published Feb. 24. "In the light of the more
accurate data now available, the expansion of output and
the gains in employment in the first weeks of the year
seem to have been almost wholly seasonal in character,"
"The Survey" continues. It further says:
Near-Term Business Prospects.
On the whole, present conditions seem to justify the expectation of a
few months of business activity at, or about, present levels (with allowance, of course, for the expansion that is usually seen in the spring),
followed by a gradual upward trend. While some slight further recessions
may be witnessed in the meantime, there is ground for the belief that the
decline has nearly run its course and that the present rate of operations
represents approximately the low point of the current cycle.
Although industrial employment continued to decrease last month, the
movement is regarded as seasonal, and the general situation is characterized as better than it was a month earlier.
Possible Political Obstacles.
The more optimistic views of the outlook for business that have prevailed since the beginning of the year have been based on the assumption
that events would be permitted to take their natural course without the
handicap of ill-advised legislation. Unfortunately, it seems unlikely that
this will be he case. The compromise veterans' bonus measure providing
for loans up to 50% of the face amount of the bonus certificates has
been passed by the House of Representatives and the Senate. At the time
of going to press, it is announced that the President has signified his
intention to veto the measure, but the prediction is freely made that the
veto will be overridden.
The country is fortunate at least to the extent that the wild project of
paying the full face amount of the certificates in cash has been abandoned.
But the present bill, while less extravagant in its provisions, is no less
wrong in principle and still places a great burden on the Treasury. It is
estimated that this bill, if it becomes law, will involve payments of at
least $550,000,000, and possibly as much as $1,720,000,000, the exact
amount depending on how many veterans avail themselves of the opportunity to borrow.
To those who are familiar with the intricacies of financial affairs, it is
incomprehensible that an American Congress at this moment should seri.
ously consider assuming such an obligation. With an estimated budget
deficit of $500,000,000 already before it, and with large maturing obligations to meet in the near future, the Treasury Department has all it can
handle as matters stand. The additional flotation of a large bond issue
to meet bonus payments will impose a staggering burden upon the Treasury.
It will, moreover, have a most unfortunate effect on the slowly reviving
Any stimulation to trade
security markets and retard business recovery.
will be purely temporary. Its
that may result from its inflationary effects
be foretold, but it will certainly
exact effects on the public finances cannot
in its long struggle to reduce
place another obstacle before the Treasury
debt retirement. Stringent
of
taxes without interrupting the process
basis of public fiscal policy
the
form
should
economy, not extravagance,
at a time like this.
much smaller, ranging from 1% to 5%. The leading apparel
stores reported sales 5% below January 1930, as compared
with a decline of more than 8% in December." The
"Review" further says:
Stocks of merchandise on hand at the end of January, valued at retail
prices, were nearly 10% below last year, the largest reduction in a number
of years. The rate of collections on charge accounts during the mouth was
slightly lower In January 1930. but compared more favorably with a year
ago than in December.
Per Cent of Charge
Percentage Change Accts. Outstanding
December 31
January 1931
Colkcled
Compared with
1930.
in January.
Jan.
Locality.
Stock on
1931.
Net Sales. Hand End 1930.
of Month.
51.6
-8.2
52.6
-8.6
New York
51.2
-14.3
48.8
-5.8
Buffalo
49.7
49.3
-7.3
-2.6
Rochester
34.0
33.1
-6.7
-7.9
Syracuse
49.6
-15.1
45.9
-2.6
Newark
41.6
40.8
-8.4
-6.7
Bridgeport
41.8
39.9
-10.8
-9.3
Elsewhere
-4.8
Northern New York State
-13.2
Southern New York State
-12.6
Hudson River Valley District
-9.0
Capital District
-1.2
Westchester District
49.1
5-0.1
-9.5
-7.6
All department stores
-4.9
-13.0
47.3
50.7
Apparel stores
As the following table shows, the principal apparel departments were
among those showing the more favorable comparisons of sales with those
of a year ago, while the furniture, home furnishings and musical instrument
and radio departments were among those showing the larger reductions in
sales:
Toilet articles and drugs
Toys and sporting goods
Men's and boys' wear
Men's furnishings
Woolen goods
Women's and misses'ready-to-wear
Women's ready-to-wear accessories
Hosiery
Linens and handerkerchiefs
Silverware and Jewelry
Cotton goods
Luggage and other leather goods
Shoes
Furniture
Silks and velvets
Books and stationery
Home furniture
Musical Instruments and radio
Miscellaneous
Net Sales
Percentage Change
January 1931
Compared With
Jan. 1930.
Stock on Hand
Percentage Change
Jan. 311931
Compared With
Jan. 311930.
+10.9
+10.4
+4.1
+1.7
+1.6
-0.7
-1.1
-1.2
-1.4
-3.8
-4.7
--7.8
-8.3
-9.6
-9.9
-10.7
-11.5
-51.3
-15.4
-7.0
-7.1
-14.1
-15.9
-31.8
-21.3
-11.0
-19.1
+0.2
-9.1
-9.6
-20.8
-15.7
-13.5
-16.7
-15.0
-7.4
+9.0
-15.4
Decrease of Over 3% in Retail Food Prices from Dec. 15Jan. 15-Drop of 143% in Year.
Retail food prices in the United States, as reported to the
Bureau of Labor Statistics of the United States Department
of Labor,showed a decrease of a little more than 3% on Jan.
15 1931, when compared with Dec. 15 1930, and a decrease
in New York Federal
of about 14%% since Jan. 15 1930. The Bureau's weighted Falling Off in Chain Store Sales
as Compared with
January
in
1913
as
District
100.0,
Reserve
in
were
prices
average
index numbers, with
Year.
Last
and
Same
1930,
15
Month
Dec.
132.8
155.4 for Jan. 15 1930, 137.2 for
The March 1 "Monthly Review" of the Federal Reserve
for Jan. 15 1931, The Bureau's survey Feb. 21 continues:
32
articles
on
1931
15
which
Jan.
to
151930.
Bank
Dec.
of New York has the following to say regarding chain
During the month from
monthly prices were secured decreased as follows: Strictly fresh eggs, 13% store trade:
11%; oranges, 9%; lard, 6%; pork chops and navy beans, 5%;
were
butter,
bread, 4%; sliced bacon, oleomargarine, cheese, rice and canned tomatoes,
3%; sliced ham, flour, cornmeal, macaroni, pork and beans, coffee and
prunes, 2%;sirloin steak, round steak, chuck roast, plate beef, fresh milk.
evaporated milk, rolled oats, canned corn, canned peas and raisins, 1%;
and rib roast, wheat cereal, and tea less than five-tenths of 1%. Five
organizations
Total sales in January of the reporting chain store
last September.
L3% less than a year ago, the smallest decrease since year previous,
The sales of ten-cent chain systems were 4% larger than a of drug, shoe
sales
the first increase in sales since April. The daily rate of
ago than in
and variety chains declined considerably less from a year
FEB. 28
1931.]
December, while in groceries and candy the decreases In sales showed no
material change from December.
After allowing for the change in the number of stores operated, ten-cent
chains were the only type of chain stores that reported an increase; however, the average decrease in sales per store of all reporting chain systems
showed the smallest decline since May 1930.
Percentage Change January 1931
Compared with January 1930.
TYPe of Store.
Grocery
Ten cent
Drug
Shoe
Variety
Candy
Total
1495
FINANCIAL CHRONICLE
Ntatnber of
Stores.
Total
Sales.
Sales per
Store.
+5.4
+4.2
-3.3
+7.7
+7.4
-2.0
-2.4
+4.3
-12.0
-14.1
-4.0
-26.8
-7.4
+0.1
-9.0
-20.3
-10.6
-25.3
+4.9
-1.3
-6.0
Union Trust Company of Cleveland Finds Important
Adjustments Have Laid Foundation for Improvement in Business Profits This Year.
Important adjustments in the industrial situation which
have taken place in recent months have laid the foundation for improvement in business profits in 1931, according
to the Union Trust Co., Cleveland. Even if the total volume
of business does not greatly exceed that of 1930, the bank
believes there is a possibility that net earnings will increase.
Among the factors favorable for improvements in industrial
profits the bank cites the following:
1. Accumulation of a deferred demand for merchandise.
2. Completion of the downward readjustment of retail prices, and its
effect upon the purchasing power of those now steadily employed.
3. Readjustments in producing industries with respect to material
prices and volume of operations.
manager, and V. R. Jacobs, assistant manager of aeronautics.
Increase in Water Power Development in United States
During 1930 Over a Million Horse Power.
The total capacity of water wheels at water power plants
in the United States on Jan. 1 1931, according to the annual
report released by the Department of the Interior through
the Geological Survey, was 14,884,667 horse power, an
increase of 1,076,889 horse power, or 7.2%, during 1930.
This increase has been exceeded only in 1929 and 1926,
when the increases were 1,276,000 and 1,138,000 horse power
respectively. The Department under date of Feb. 19 further says:
These figures indicate that the utilization of the country's water power
resources is proceeding at a fur rate, notwithstanding the continued improvement in the efficiency of steam plants. The States that show an
increase of about 100.000 horse power each during the year are widely
distributed-New Hampshire, New York, South Carolina, Tennessee,
Alabama and Washington.
The following table shows the total capacity of water wheels in different
. and the increase during
sections of the United Stites on Jan. 1 1930 and 1931
1930:
CAPACITY OF WATER WHEELS IN HORSE POWER.
4
United States
New England
Middle Atlantic
East North Central
West North Central
South Atlantic
East South Central
West South Central
Mountain
Pacific
Jan. 1 1930.
Jon. 1 1931.
13,807,778
14,884,667
1.642,670
2,113,313
1,075,434
551.102
2,657.289
1,168,992
49,237
1,184,528
3.365,213
1,897.591
2,211,663
1,092,414
566,766
2.918,379
1,363,653
49.237
1,217,388
3,567,576
Increase.
7%
16
5
2
3
10
17
0
8
6
"The first of the factors which we believe may exercise
The
report shows the total capacity of water wheels in plants
a favorable effect upon business profits this year is the of 100 complete
horse power or more by States and main divisions of the United
fact that 1930 consumption definitely exceeded production, States, segregated between public utility companies and manufacturing
the
the result being an accumulated demand for goods," says companies, the development in different sections of the country, and1931.
rank of the ten leading States in developed water power from 1921 to
the bank, in its business magazine "Trade Winds." "During 1930 there was a wide variation in decline of consumption among various types of merchandise." The bank adds: "Annalist" Weekly Index of Wholesale Commodity
A study of the figures shows that the American public during 1930
contrived to buy from day to day the ordinary necessaries of life. Sugar
consumption for 1930 fell off only 3.64%. Gasoline consumption actually
increased. Chain stores showed an increase in tonnage of merchandise
distributed.
There is no question but what unemployment has been and remains
serious. However, at least 76% of the persons normally gainfully employed are at regular jobs and at steady wages, most of them receiving the
same incomes from their work as they did in the past.
It has not been sufficiently emphasized that the purchasing power of
those who still remain on a steady income basis is greater to-day than at
any time in the past 12 years. This has been brought about by price
reductions.
The significance of this situation lies in the fact that the increased
purchasing power of the great majority of the public still employed on old
salary levels may well offset to a great extent the decreased purchasing
power of the unemployed in terms of volume of merchandise sold. Businesses, therefore-and retailers in particular-who have succeeded in
adjusting themselves completely to present lower price levels, may be
able to regain what they consider a normal volume more rapidly than
they had expected.
There are many companies which showed a loss in 1930 which might
have shown a profit had it not been for the necessity of writing off high
priced inventories both as with respect to raw materials on hand and
finished merchandise in storage. Even if these companies can secure only
the same volume of business in 1931 that they did in 1930 their earnings
record should show substantial improvement.
Gain in Business During 1931 Predicted by R.S. Wilson
of Goodyear Tire & Rubber Co.
Bottom of the business depression was reached last November, and a steady gain in business during 1931 was
predicted by R. S. Wilson, Vice-President and sales manager of the Goodyear Tire & Rubber Co., in an address
before a Goodyear district sales convention at the Park
Central Hotel. Although recovery will be slower than in
former depressions, the rise will be orderly unless unwarranted advances occur which will necessitate later readjustments. Goodyear sales meetings, Mr. Wilson said, were
deliberately delayed until business was again on the upturn,
so as to inaugurate new sales efforts at the most effective
time.
According to I. M. Quinn, manager of the Goodyear branch
in New York, the outlook for his organization in 1931 indicates a substantial increase in sales volume over 1930.
Goodyear sales representatives from Boston to Baltimore
attended the convention, which closed Friday, Feb. 20.
Other speakers included W. D.,Shilts, Secretary of the Good.
year Co.; Fred L. Morgan, manager of automobile tire
sales; E. It. Preston, manager of truck and bus tire sales;
C. T. Hutchins, advertising manager; R. E. Davis, of the
commercial research division; P. E. Hanaver, retail sales
Prices.
The "Annalist" Weekly Index of Wholesale Commodity
Prices continues an uninterrupted decline to new lows for
the depression and, at 109.3, is 1.5% lower than last week,
6% lower than at the first of the year, and within 10% of
the 1913 level. The "Annalist" continues:
Comparing the groups in the composite index with the 1913 base, we find
that farm products are now 1% below 1913; that the miscellaneous group,
which includes leather, paper, lubricating oil and rubber, is 11.1% lower;
that chemicals are back to the 1913 level; and that textiles and metals are
within 2.7 and 6% respectively of the I - se figures.
The decline this week was led by farm products, with symp:thetic declines in foods. Building materi-ls Fre sharply lower; and chemicals,
textiles and miscellaneous show v ekness.
THE -ANNALIST" WEEKLY INDEX OF WHOLESALE COMMODITY
•
PRICES (1913=100).
Feb. 24 1931. Feb. 17 1931. Feb. 25 1930.
Farm products
Food products
Textile products
Fuels.
Metals
Building materials
Chemicals
Miscellaneous
All commodities
*Revised.
99.1
113.0
102.7
135.9
106.0
123.0
100.4
88.7
•101.0
114.7
102.8
105.7
125.2
100.4
88.9
130.2
135.6
134.4
151.9
123.5
150.8
132.0
116.0
109.3
111.0
135.2
THE "ANNALIST" WEEKLY INDEX OF WHOLESALE COMMODITY
PRICES-MONTHLY AVERAGES (1913=100).
February 1931. January 1931. February 1930.
Farm products
Food products
Textile products
Fuels
Metals
Building materials
Chemicals
MLscellaneous
101.2
115.2
103.0
138.7
105.7
126.3
100.4
88.9
107.7
118.9
10.5.2
140.8
105.8
129.4
101.0
89.1
133.7
139.0
136.1
154.4
123.4
151.3
110.8
117.8
All commodltica
111.1
114.8
137.4
Further Decline in Wholesale Prices in January
According to U. S. Department of Labor.
The index number of wholesale prices computed by the
Bureau of Labor Statistics of the United States Department
of Labor shows a further recession in January. This index
number, which includes 550 commodities, or price quotations weighted according to the importance of each article
and based on prices in 1926 as 100.0, declined from 78.4
4%. This
in December to 77.0 in January, a decrease of 13
compares with a decrease of 2% between November and
December and a decrease of over *4% between October
and November, thus showing a slowing down of the recent
price slump. The purchasing power of the 1926 dollar in
1496 .
FINANCIAL CHRONICLE
January was $1.299. The Bureau further reports as follows
under date of Feb. 21:
_
Farm products as a group decreased 23,1% below the December level,
due to lower prices for corn, oats, rye, wheat, beef cattle, eggs, hay, and
wool. Milk also averaged somewhat lower than in December. Sheep and
lambs, poultry,onions, and potatoes, on the other hand,averaged somewhat
higher than in the month before, while cotton showed a negligible increase.
Foods were 2% lower than in December, with declines in butter, cheese,
cured meats, fresh pork, lard, and coffee. Lamb, mutton, veal, and
dressed poultry averaged higher than in the month before, while fresh beef
flour, and granulated sugar, were practically unchanged in price. Both
butter and eggs were at lower levels in January than at any time since prewar days.
Hides and skins showed a further price drop, with leather, boots and shoes,
and other leather products also declining.
In the group of textile products there were small decreases among silk
and rayon, woolen and worsted goods, and other textile products, with
larger decreases among cotton goods.
Anthracite and bituminous coal and petroleum products showed a downward price trend, while no charge was reported for coke, resulting in a small
decrease in fuel and lighting materials as a whole.
Among metals and metal products there w s a negligible increase In iron
and steel, while nonferrous metals declined appreciably. Automobiles and
other metal products showed decreases.
Building materials were downward, as lumber, paint materials and
certain other building materials declined In price. Brick prices were practically stationary, while structural steel advanced.
Chemicals and drug;, including mixed fertilizers, were somewhat cheaper
than in December.
Housefurnishing goods also moved downward, with slight declines in
furishings.
In toe group of miscellaneous commodities, cattle feed, crude rubber, and
automobile tires again moved downward, while paper and pulp were unchanged in price.
Raw materials as a whole averaged lower than in December, as did also
semi-manufactured articles and finished products.
In the large group of non-agricultural commodities, including all articles
other than farm products, and among all commodities other than farm
products and foods, January prices averaged lower than those of the month
before.
INDEX NUMBERS OF WHOLESALE PRICES BY GROUPS AND SUBGROUPS OF COMMODITIES (1929=100.)
77.8
WOICnO,<OCOOA.P.00,1b.I.O.ICOlO.A.COCOOOO.AO
79.0
4.01
90.3
50.4
89.3
88.1
67.4
94.7
98.7
95.0
82.9
76.0
81.7
90.5
83.0
70.2
95.5
83.6
87.0
65.1
81.4
90.4
91.1
95.5
87.3
64.7
75.0
83.6
17.1
45.7
86.1
72.9
73.4
80.5
78.2
• • • •
77.0
73.5
62.4
75.2
76.0
80.1
85.2
88.4
73.4
88.6
64.4
90.8
95.1
102.4
71.0
77.3
50.1
82.1
57.5
69.8
88.9
88.1
83.8
• • •
78.4
75.2
64.0
76.3
78.1
81.8
89.4
89.2
74.5
91.2
69.4
91.5
97.7
104.2
72.4
79.7
51.7
82.3
57.8
70.5
89.6
89.1
83.8
95.4
51.1
90.0
38.0
69.7
94.9
99.5
95.2
84.4
78.1
81.6
90.6
81.7
72.4
97.1
84.8
89.1
65.5
81.4
90.6
91.3
95.5
87.6
66.9
78.2
83.6
18.6
51.3
86.9
74.2
74.3
81.9
79.4
. . . . .. . . . .. . . • • • • • • •
93.4
101.0
93.8
100.5
103.9
97.2
97.5
106.2
91.7
105.1
104.2
108.3
103.8
105.8
89.4
95.4
76.0
94.0
72.3
79.9
91.2
92.2
84.1
92.5
67.3
101.2
95.7
100.6
96.1
108.8
98.4
96.2
92.7
90.4
90.4
97.0
93.7
106.4
93.0
98.9
69.0
89.8
97.1
97.3
96.6
97.7
78.7
113.5
87.3
31.1
55.2
108.3
94.0
93.0
93.3
91.4
Purchasing
Power of
the Dollar
Jan. 1931.
'Data not yet available.
Federal Reserve Board's Summary of Business Conditions in the United States-Less Than Seasonal
Increase in Industrial Activity-Factory Employment and Wages Declined.
The Federal Reserve Board, in its summary of business
conditions in the United States, issued Feb. 25, states that
"industrial activity increased in January by slightly less
than the usual seasonal amount, and factory employment
and pay rolls declined. Money rates in the open market
declined further from the middle of January to the middle
of February." The Board's summary continues:
Production.
The Board's index of industrial production, which is adjusted for seasonal
N ariation, showed a decrease of less than one per cent in January, compared
with declines of three per cent in November and in December. Activity in
in the steel industry, which was at a low level in December, increased
during the following month by considerably more than the usual seasonal
amount; output of automobiles, which had shown an unusual increase In
December„ increased less in January than in the corresponding month of
other recent years. The cotton and wool textile industries were more active
in January, while the output of copper, petroleum, and coal declined.
Employment.
The number of wage earners employed at factories was smaller in the pay
roll period ending nearest Jan. 15 than in the preceding month, reflecting
in part extended year-end shutdowns. There were large declines in employment at foundries and at establishments producing hosiery, women's clothing,
lumber, brick, cement and tobacco products; employment in the men's
clothing, leather, anad agricultural implement industries increased somewhat more than usual for the season. Factory pay rolls were considerably
reduced in January.
Value of contracts awarded for residential building continued to decline in
January, according to the F. IV. Dodge Corporation, while contracts for public works and utilities increased. In the first half of February the daily
average of contracts awarded for residential building increased.
Distribution.
Volume of freight car loadings was reduced further in January, contrary
to the usual seasonal tendency, reLecting decreases in shipments of coal,
merchandise, and miscellaneous freight. Department store sales, which
always show a sharp reduction from December to January, declined by
less than the estimated seasonal amount.
Wholesale Prices.
The general level of wholesale commodity prices declined further by 2%
in January, according to the Bureau of Labor Statistics. Prices of many
leading agricultural products, and of copper, and silver decreased substantially, while prices of cotton and silk advanced. In the first half of
February the price of cotton continued to rise, and in the middle of the
month copper also advanced, while the price of silver declined to new low
levels and prices of livestock continued to decrease.
Bank Credit and Money Rates.
Volume of credit at member banks in leading cities showed little change
from Jan. 14 to Feb. 11, further declines of $200,000,000 in loans on
securities and of $115,000,000 in all other loans being largely offset by
an increase of $310,000,000 in the banks' holdings of investments.
In the first three weeks of February bank suspensions declined sharply,
and a number of banks, previously suspended, resumed operations.
Volume of Reserve Bank credit outstanding decreased by $175,000,000
between the weeks ending Jan. 17 and Feb. 14, reflecting a reduction of
870,000,000 in member bank balances and $80,000,000 in money in circulation, together with an increase of $25,000,000 in the stock of monetary
gold. The principal reduction has been in acceptance holdings of the
Reserve Banks.
Money rates in the open market continued to decline after the middle
of January, and by the middle of February were at new low levels. The
1
2 to
prevailing rate on prime commercial paper declined to a range of 2/
2%%; and the rate on bankers' acceptances was reduced to 1%%, but
subsequently advanced to 11
/
2%.
Orders for Electrical Goods.
New orders booked during the fourth quarter of 1930, as
reported to the Bureau of the Census by 81 manufacturers
of electrical goods, were $195,546,657, as compared with
$217,818,078, for the third quarter of 1930, and $288,696,415
for the fourth quarter of 1929. The following totals of
bookings for each quarter since the beginning of 1925 include
motors, storage batteries, domestic appliances and industrial
equipment and are presented, not as a complete statement
of the industry, but probably as sufficiently representative
to indicate the trend:
1925.
1926.
1927.
$
s
8
ist__ 227,767,511 255,917,883 235,883,303
2d .._ 222,056,450 240,855,953 229,353,332
3d __ 225,184,732 233,873,171 228,610,346
4th__ 237,225,521 251,442,991 232,877,670
Quar.
1928.
1929.
1930.
$
$
s
237,508,001 322,424,619 298,733,208
245,520,801 340,863,112 276,732,039
264,466,257 338,169,678 217,818,078
282,226.449 288,696.415 195,546,657
Total 912,234,214 982,089,998 926,724,651 1,029,721,508 1,290,153,824
5-year (1025-1929) quarter y average, 8257,046,210.
988,829,982
.
January
1930.
• • • .• .
......
. ... .
i.....0e0;-...-tio.-CuCp•-•p0.-,>5.,-..-1000.1...-bDC.a.poiva.......c"
-0
00.40000,40,00...4....0,0e0cugagaweugo0.2,-Qaot.g.Cotolvco.
00..,Nw.-CoCocowCom,sCocococotocovolutcni>04.020,CoaxCn04.1 cOOARO0a041-•000,10,00ANDCOO.,314.-.42A7Coc0
December
1930.
OA
All commodities
Farm products
Grains
Livestock and poultry
Other farm products
Foods
Butter. cheese, and milk
Meats
Other foods
Hides and leather products
Hides and skins
Leather
Boots and shoes
Other leather products
Textile products
Cotton goods
Silk and rayon
Woolen and worsted goods--.
Other textile products
Fuel and lighting materials
Anthracite coal
Bituminous coal
Coke
Gas
Petroleum products
Metals and metal products
Iron and steel
Non-ferrous metals
Agricultural implements
Automobiles
Other metal products
Building materials
Lumber
Brick
Cement
Structural steel
Paint materials
Other building materials
Chemicals and drugs
Chemicals
Drugs and pharmaceuticals
Fertilizer materials
Mixed fertilizers
House-furnishing goods
FurnitureFurnishings
Mlsoellaneous
Cattle feed
Paper and pulp
Rubber
Automobile tires
Other miscellaneous
Raw materials
Semi-manufactured articles...-.
Finished products
Non-agricultural commodities_ _
All commodities less farm products and foods
January
1930.
00
Groups and Sub-Groups.
[You 132.
United States Department of Labor's Survey of Building Operations in United States-Decline of
22.4% in Estimated Cost of Building Operations
in January Compared With December.
The Bureau of Labor Statistics has received building
permit reports from 295 identical cities of the United States
having a population of 25,000 or over for the months of
December 1930 and January 1931. According to permits
issued during January 1931, the estimated cost of total
building was $98,678,521, a reduction of 22.4% as compared with the total building for which permits were issued
during December 1930. Residential building decreased
18.2% in estimated cost, comparing permits in these two
months and new non-residential building decreased 32.5%.
According to permits issued during January 1931, 8,081
dwelling units were provided in new residential buildings, a
decrease of 13.1% as compared with the number of families
provided for in the residences for which permits were issued
during December 1930. The Bureau's further survey Feb.
21, follows:
Comparing permits issued in January 1931, with those issued in January
1930, there was a decrease in the estimated cost of all building of 13.7%.
Permits issued for residential building show an Increase of 1.9% in estimated cost, comparing January 1931 with January 1930. However,
estimated cost of new non-residential buildings decreased 29.5%.
Permits were issued durin January 1931 for the following large building
projects: In Cambridge, Mass., permits were issued for two apartment
houses to cost $300,000: in Newton, Mass.,for an apartment house to cost
$500,000: in Cranston, II. I., for two public school buildings to cost nearly
$400,000: in Buffalo, N. Y., for store buildings to cost $450,000; in the
Borough of the Bronx for 14 apartment houses to cost over $2,500,000,
and for four public school buildings to cost over $3,000,000: in the Borough
of Brooklyn for apartment houses to cost nearly $3,000,000: in the Borough
of Manhattan for apartment houses to cost nearly $6,000,000, for office
buildings to cost over $1,500,000, and for public buildings to cost over
$3,000,000: in Ilammond, Indiana, for two factory buildings to cost
nearly $2,500,000: in Detroit for an office building to cost $1,500,000.
and for school buildings to cost $2,000,000: in St. Louis for store buildings to cost over $1,300,000: in Oklahoma City, Oklahoma, for an office
building to cost $2,500.000: and in San Francisco for institutional buildings to cost over $1,000,000. Contracts were let by the United States
Government for public buildings totaling over $16,000,000 during December 1930, and nearly 88,000,000 during January 1931.
Detailed figures showing the estimated cost of buildings covered by
permits issued in each of the 295 cities separately will be published in the
March issue of the "Monthly Labor Review."
ESTIMATED COST OF NEW BUILDINGS IN 295 IDENTICAL CITIES
AS SHOWN BY PERMITS ISSUED IN DECEMBER 1930
AND JANUARY 1931.
New Residential Buildings.
Estimated
Cost.
Dec. 1930.
New England
Middle Atlantic
East North Central
West North Central_
South Atlantic
South Central
Mountain & Pacific
Total
Per cent of change
47
65
75
22
32
26
28
295
Geographic Division. Cities.
Total
Percent of change
47
65
75
22
32
26
28
295
Dec. 1930.
52,776,200
19,098,745
3,743,931
1,241,211
1,867,588
2,784.458
4,810,590
469
4,933
844
338
315
675
1,730
$44,410,165 836,322,723
-18.2
9,304
55,689,850
22,279.370
4,466,172
1,371,229
1,528,075
2,902,149
6,173,320
New Non-Residential
Buildings,
Estimated
Cost.
Dec. 1930.
New England
Middle Atlantic
East North Central
West North Central_
South Atlantic
South Central
Mountain & Pacific_
Jan. 1931.
Families Provided for in
New Dwellings.
Jan. 1931.
Jan. 1931.
1-.00001,
34,
0
Geographic Division. CUies.
1497
FINANCIAL CHRONICLE
FEB. 28 1931.]
8,081
-13.1
Total Construction
(Including Alterations
and Repairs),
Estimated Cost.
Dec. 1930,
Jan. 1931.
$1,185,128 $15,699,771
15,279,214 45,289,905
11,629,040 15,945.150
8,219,015
2.372.414
1.537,100 11,934,919
5,448,376 10,560,943
6,204,899 19,501,691
15.102.159
44,318,550
17,223,810
4,065,987
6,049,886
9,010,547
12,907,582
564,751,783 $43,706,171 127,151,394
-52.5
98,678.521
-22 4
58,342,048
14,702.872
8,353,341
5,701,063
9,289,333
6,782,987
11,580.139
Canadian Building Operations During January.
There was a seasonal decline in the value of the building
permits issued in Canada by 61 cities during January as
compared with the preceding month, but the aggregate was
slightly higher than in January, 1931. This is indicated
in the statement made public Feb. 18 by the Department of
Trade and Commerce, issued at Ottawa by the Dominion
Bureau of Statistics. In its further report of building permits for January the Bureau says:
Year.
1931
1930
1929
1928
1927
1926
1925
1924
1923
1922
1921
1920
Value of
Permits
Issued in
January.
57,510,745
7,217,397
8,416,880
7,716,587
5,676,537
4,719,534
5,447,270
4,460,579
4,139,498
3,326,537
2,595,564
4.017.024
Indexes of Value Indexes of Wholesale Prices of
of Permits
Issued in
Building -I
Materials in
January
January
(192100).
(1926 A v.=
-100).
84.1
97.3
98.0
95.2
96.3
102.3
101.9
112.4
109.8
109.3
143.0
134.5
187.0
179.7
209.5
192.1
141.3
117.5
135.6
111.0
103,1
82.8
64.6
100.0
As previously stated, the 1931 figure for January WM only twice exceeded
in the 12 years' record, I. e., by the aggregates for 1929 and 1928.
The following table gives the value of the building permits issued by ..1
cities in January, 1931, and December and January, 1930. The 35 cities
for which statistics are available since 1910 are indicated thus "re .
ESTIMATED COST OF BUILDING WORK AS INDICATED BY PERMITS
ISSUED BY 61 CITIES.
Ian. 1931. Dec. 1930. Jan, 1930.
CitiesPrince Edward Island-Charlottetown
Nova Scotia
xHaifas
New Glasgow
:Sydney
49,840
44,810
5,000
227,202
217,762
140
9,300
148.540
148,540
New Brunswick
Fredericton
:Moncton
:Saint John
80,875
5,435
22,210
80,875
200
5,235
Quebec
:Montreal-:Malsonneuve
:Quebec
Shawinigan Falls
:Sherbrooke
:Three Rivers
:Westmount
1,466,442
1,028.570
317,247
7,245,010
8.675,354
501,836
93,900
26,725
54,000
8,820
5;000
Ontario
Belleville
:Brantford
Chatham
:Fort William
Galt
:Guelph
:Hamilton__
:Kingston
:Kitchener
:London
Niagara Falls
Oshawa
:Ottawa
Owen Sound
:Peterborough
:Port Arthur
:Stratford
:St. Catharines
:St. Thomas
Sarnia
Sault Ste Marie
:Toronto
York and East York Townships
Welland
:Windsor
East Windsor
Riverside
Sandwich
Walkervine
Woodstock
3,289,884
200
71,137
2,300
14,000
7,350
36,525
158,200
14,800
72,550
522,650
5,305
49,050
40,400
4,197,903
133,920
427,115
153,294
11,200
9.075
7,162
190,300
9,900
14,723
30,060
39,330
20,475
128,570
20,200
10,370
12,622
5,663
24,12.5
8,565
17,200
2,075
2,538,096
300,582
5,300
49,250
4.250
600
1,200
21,000
1,681
2,954,680
732,700
7,525
925
11,530
4;468
880
9,525
1,158
1,243,036
494,558
14,990
7,350
500
1,200
482,000
15,782
22,210
1,059,933
891.875
54,158
.I I
72,:'I
300
40,000
13,906
38,517
2,000
3,035
13,,
320,650
15,825
18,695
44.160
15,180
4,250
44,500
I9,5-2.75
450
42,325
43,965
300
75,385
1,845
1,730,887
133,100
170
217,840
1,700
4,200
61,11)0
90,000
3,02k
Manitoba
:Brandon
St. Bonitace
111.42.5
75
xwinniDes
115350
661.950
1,800
609,000
51,150
Saskatchewan
:Moose Jaw
:Regina
:Saskatoon
256,658
4,000
34,083
218,575
225,995
300
192,220
33,475
54,143
1,019,360
Alberta
:Calgary
:Edmonton
Lethbridge
Medicine Hat
169,433
93,428
26,100
47,555
2,350
155,781
62,904
27,765
14,712
50,400
231,721
191,630
20,600
17.
1,ng
2,500
730,200
1,073,493
It (the aggregate for January 1931) was also greater than in January
of most years since this record was instituted in 1920, being exceeded only British Columbia
994,114
2,086,188 2,721,005
640
Kamloops
6,505
11,800
by 1929 and 1928. The co-operating municipalities reported permits for
17,500
Nanalmo
15,960
350
building estimated to cost $7,510.745 as compared with $15,440,281 in
16,125
xNew Westminster
16,525
198,860
December 1930, and $7,217,397 in January 1930. There was therefore a
4,600
2,700
Prince Rupert
2,940
868,744
reduction of 51% in the former, but an increase of 4.1% in the latter, more
:Vancouver
1.797,550 2,593.150
3,800
16,933
North Vancouver
11,765
significant comparison.
83,705
63,937
:Victoria
68,218
Some 50 cities furnished detailed statements, showing that they had
granted over 400 permits for dwellings valued at about $1,800,000 and more
$7,510,745 $15,440,281 $7,217,397
Total-61 cities
:Total-35 cities
16,350,287 $13,988,454 16,735,562
than 1,000 permits for other buildings estimated to cost approximately
December,
authority
$4,500,000. In
was granted for the erection of some
500 dwellings and 1,200 other buildings, estimated to cost approximately
$2,600,000 and $12,000,000, respectively.
Freight Continues to
New Brunswick, Saskatchewan and Alberta reported increases in the Loading of Railroad Revenue
value of the building authorized during January as compared with DeFall Heavily Below 1930 and 1929.
cember, the gain in the first named being most noteworthy. Of the declines
Loading of revenue freight for the week ended on Feb. 14,
recorded in the remaining provinces, that of $5.778,568, or 79.8%, in
Quebec was most pronounced.
totaled 720,689 cars, the Car Service Division of the AmeriAs compared with January, 1930, there were increases in New Brunswick, can Railway Association announced on Feb. 24. This was
Quebec, Ontario and British Columbia. The most marked gain In this
comparison was in British Columbia, where the value of the building author- an increase of 1,636 cars above the preceding week but a
ized increased by $1,092,074, or 109.9%. Reductions were recorded in decrease of 172,451 cars below the same week last year.
Nova Scotia and the three Prairie Provinces, that of $816,835, or 76.1% It also was a reduction of 236,809 cars below the corresponding
in Saskatchewan being greatest.
Particulars follow:
In Montreal and Vancouver, there were decreases in the value of the week in 1929.
Miscellaneous freight loading for the week of Feb. 14 totaled 245.555
building permits granted as compared with the preceding month, but increases over the corresponding month of last year. Toronto showed a cars, 76,749 cars under the same week in 1930 and 92,863 cars under the
decline in both comparisons, while in Winnipeg the January total was higher corresponding week in 1929.
Loading of merchandise less than carload lot freight amounted to 212,610
than in December, but lower than in January, 1930. The following cities
reported increases in both comparisons-New Glasgow, Saint John, Sher- cars, a decrease of 26,822 cars below the corresponding week last year
ago.
brooke, Three Rivers, Fort William, Guelph, Kitchener, London, Oshawa, and 35.960 cars below the same week two years
Coal loading amounted to 148,209 cars, a decrease of 32,778 cars below
York and East York Townships, Welland, Walkerville, Woodstock, Moose
under
the
same week two years ago.
cars
New
Westminster.
the same week in 1930 and 63,541
Jaw, Lethbridge and
Record for January in the Years 1920-1931.
Forest products loading amounted to 34,899 cars, 24,317 cars under the
The following table gives the value of the building authorized by 61 corresponding week in 1930 and 26,625 cars under the same week two years
cities during January of each year since 1920. Index numbers of wholesale ago.
Ore loading amounted to 5,889 cars, a reduction of 3,006 can below the
prices or building materials in January of the same years are also given
same week in 1930 and 3,706 cars below the same week In 1929.
(1926-100).
PINANCIAI. CHRONICLE
1498
Coke loading amounted to 9,192 cars, a decrease of 2,482 cars below the
.corresponding week last year and 4,407 cars under the same week in 1929.
rain and grain products loading for the week totaled 41,279 cars,
-3,455 cars below the corresponding week in 1930 and 5,874 cars below
the same week in 1929. In the western districts alone, grain and grain
'products loading amounted to 28,504 cars, a decrease of 2,645 cars below
'the same week in 1930.
Live stock loading totaled 23,046 cars. 2,842 cars below the same week
In 1930 and 3,833 cars under the corresponding week in 1929. In the
western districts alone, live stock loading amounted to 18,181 cars, a
• decrease of 2,225 cars compared with the same week last year.
All districts reported reductions in the total loading of all commodities
'compared not only with the same week in 1930 but also with the same week
In 1929.
Loading of revenue freight in 1931 compared with the two previous years
Yonows:
1929.
1931.
1930.
Five weeks in January
4,246,552
4,518.609
3,490,542
955,981
Week ended Feb. 7
*886,701
719,053
Week ended Feb. 14
957.498
893,140
720,689
Total
Correction.
4,930,284
6,026,393
6,432,088
Oakland Motor Car Company Recalls 500 Employes.
Associated Press advices from Pontiac, Mich., Feb. 16,
said:
The Oakland Motor Car Company announced today that increased
production schedules have required the starting of a second assembly line
in its plant this week. In the last fortnight the company has recalled
500 additional employes, bringing the total on the payroll to 6,200.
Packer Hides at Lowest Prices Since 1893 in
Heavy Buying.
The following is from the New York "Times" of Feb. 24:
Quotations on packer hides declined last week to the lowest levels
since 1893, although more than 150,000 hides cleared during the week
into consuming channels and placed sellers in a sold-up state, according
to The Shoe and Leather Reporter. Prices have reached such levels that,
regardless of deterioration in quality, a steady outlet appears assured
until Spring hides broaden uses into wider fields.
The hide price index of The Shoe and Leather Reporter as of Feb. 21
was 37.4, compared with 40.3 the previous week and with the high of
the last price cycle of 167.7, which was touched in April, 1928. In compiling this index the year 1913 was used as a basis of 100.0.
Review of Building Situation in Illinois During
; January-Figures For 12 Months of 1930.
• In his review of the building situation in Illinois during
January, Howard B. Myers, Chief of the Bureau of Statistics
and Research of the Illinois Department of Labor states that
45 Illinois cities reported a total decline from December of
15.9% in estimated exponditure for buildings authorized
by building permits during January, and a decline of 17.4%
in number of buildings. Mr. Myers also has the following
to say under date of Feb. 19 regarding building conditions
in the State during January:
[Vou 132.
cost ofsuch repairs was $363,351, of which 47.2% was to be spent on Chicago
buildings, 22.2% on suburban buildings, and 30.6% on buildings in reporting cities outside the metropolitan area.
In his survey for the 12 months of 1930, made available
Jan. 17, Mr. Myers said:
The year 1930 marks an abrupt decline in Illinois building activity, as
shown by the number and estimated cost of buildings authorized by permits
issued in 45 principal cities of the State. During the year, 24,639 building
jobs have been authorized by permits in the 45 cities, involving a total
estimated cost of $132,116,880. Compared with the record of the same
cities during 1929, the number of buildings authorized decreased 31.6%
and the estimated cost 55.6%. The cities outside the metropolitan area
suffered less than either of the other two main geographical divisions. The
outside cities reported a total estimated valuation for the year which was
33.7% lees than that of 1929. The suburban cities were more severely
affected, reporting a total decrease of 57.8%, while Chicago reported the
heaviest percentage of decrease, 59.2%.
No suburban city reported an estimated valuation for the year which
was greater than that of last year. Four cities outside the metropolitan
area show an increase in estimated cost above the 1929 level, however.
These cities are Alton, witn an increase of 16.9%; Batavia, with an increase of 35.5%; Quincy, with an increase of 24.0%. and Springfield, with
a 4.0% increase.
Of the total estimated valuation reported during 1930. 33.8% was for
residential building, 55.8% for non-residential building, and 10.6% for
additions, alterations, repairs and installations. These figures show a
distribution which differs markedly from that of last year. In 1929 the
estimated cost of residential building was $136,312,761, or 45.9% of the
$21,469,873.
total; and of additions, alterations, repairs and installations,
or 7.2% of the total.x The estimated cost of non-residential building.
3139,513,409, was 46.9% of the total.
While the estimated cost of all three types of building was considerably
less in 1930 than in 1929, residential building was most severely affected.
This type of building was 67.5% less than in 1929, while non-residential
building was 47.2% less, and additions, alterations,repairs and installations
were 34.7% less.
In Chicago, 29.7% of the total estimated cost was to be devoted to
residential building, 62.6% to non-residential building, and 7.7% to
additions, alterations, repairs and installations. The corresponding percentage, distribution for the suburban cities is 44.9, 38.5 and 16.6, and
for the cities outside the metropolitan area, 38.7,45.4, and 15.9.
the year, 3,949 were for
Of the total number of permits issued during
residential building, estimated to cost $44,366,481. Fifty-eight and threefor
buildings in Chicago,
expended
be
to
tenths per cent of this total was
18.4% for suburban buildings, and 23.3% for buildings in the remaining
reporting cities.
The estimated cost of the 8,872 non-residential buildings authorized
during the year was $73,728,019, of which 74.1% was for Chicago buildings.
9.5% for suburban buildings, and 16.4% for buildings in cities outside the
metropolitan area. A total estimated cost of $14,022,380 was to be expended for additions, alterations, repairs and installations to 11,818
buildings in the 45 reporting cities. Of this total cost, 48.1% was for
Chicago buildings, 21.5% for buildings in the suburbs, and 30.4% for
buildings in the remaining reporting cities.
Mr. Myers' statistics follow:
OF BUILDINGS
TABLE I.-TOTAL NUMBER AND ESTIMATED COST
BASED ON PERMITS ISSUED IN 45 ILLINOIS CITIES IN JANUARY
1931. BY CITIES.
Cities.
January 1930.
December 1930.
January 1931.
of Estimated
No. of Estimated No. of Estimated No.
Cost.
BIdgs.
Cost.
Bldgs.
Cost.
Bldgs.
$
$
$
912 $5,310,396 a793 a$7,438,857
753 $4,465,400
The January building permit volume is normally the lowest during the
tear, consequently the decline reported was to be expected. The valuation
Total all cities
forJanuary this year, however, was far below that of any previous January
503 6,611,354
545 4,023,324
473 3,561,659
shown by the records of the Department of Labor, which cover the period Metropolitan area
1921 to date. The estimated valuation for January 1931, was 40.0% below
400 $2,566,600 389 55,957,025
$3,104,660
365
Chicago
January 1930, and 73.2% below January 1929.
The. decrease in valuation this January from the December figure s„," Metropolitan area. ex114 $654,929
145 $1,456,724
108 5456,999
cluding Chicago-due to an abrupt decline of 68.6% among the suburban cities and a smaller
decrease of 29.8% among the cities outside the metropolitan area. The
$92,500
14
588,950
11
$12,000
1
Berwyn
8,025
9,080
8
Ohicago total increased by 12.1%. The decline among the suburban cities
6
4,025
4
Blue Island
4
6,950
22.150
7
53,070
9
seems to be a reaction from the 67.9% increase reported for December.
Cicero
14
88,000
77,000
19
27.000
cities
these
8
by
was
reported
valuation
Evanston
30.2% below
The total January
12,000
6
113,300
2
6,110
5
Forest Park
January 1930. Chicago reported a valuation 47.9% below a year ago.
11
91,750
15,000
1
56,350
5
Glencoe
25,000
1
1,200
5
25,500
The cities outside the metropolitan area, on the other hand, are 9.5%
7
Glen EUyn
1,542
4
20.190
11
4,945
4
Harvey
above the level of January 1930.
30,850
11
103,220
12
5,400
3
Highland Park
The increase over the preceding month reported by Chicago was shared
91,500
2
7,700
4
Kenilworth
As
was
building.
the
case
non-residential
and
last
residential
44,500
4
by both
3,500
3
La Grange
69,949
10
month, slightly more than half of Chicago's non-residential total was
Lake Forest13 220,064
550
2
10,490
4
600
2
Lombard
represented by a single permit for a school building. The estimated cost
3,698
4
15,775
17
89.390
16
Maywood
of this school was 51,200,00. Two institutional buildings and a church
65,175
7
499,130
12
23,625
Oak Park
13
10,500
accounted for nearly $400.000 more.
1
30,300
Park Ridge
6
29,150
5
46,955
5
16,700
River Forest
2
The loss from last month among the suburban cities was due mainly
16.425
2
building, although residential building
non-residential
West
Chicago
in
decrease
sharp
a
to
9,000
1
21,500
2
33,000
3
Wheaton
repairs
and
alterations,
installations
12,915
2
78,320
also declined slightly. Additions,
11
53,684
10
Wilmette
the group as a whole, seven
34,700
4
24,050
4
4,100
declined abruptly. Despite the reduction for
3
Winnetka
above last month, and nine were
--cities reported an estimated valuation
the increase was due to an in- fetal outside metropoliabove January last year. In most cases,
290 $825,503
367 $1,287,072
$903,741
280
tan
area
creased activity in residential building.
area, both residential and
29.417
17
85,822
14
11,520
Alton
10
Among the cities outside the metropolitan
33,285
17
279.489
31
42,516
18
Aurora
non-residential building declined. Eight of these cities reported an increase
10.000
2
200
1
Batavia
and 11 were above a year ago.
18,000
4
54,000
Over December in building permit valuation,
11
159,000
2
Bloomington
Bloomington was due to a permit
13,950
4
7,850
6
Canton
The large increase from December at
increase
the
at
building,
Decatur
a
to
Centralia
for the erection of a $155,000 public
8,500
3
14,368
6
12,015
s
to
buildings.
Quincy
church
Danville
and
Ottawa
Moline.
46,300
park pavilion, and at
1:
10,600
10
83,000
15
Decatur
was
30.1%
for
cities,
30,575
reporting
residential
all
for
20
valuation
52,115
32
17,950
Of the total
East Bt. Louts
18
30.936
8.1% for additions,
23
20,970
17
6,945
7
Elgin
building, 61.8% for non-residential building, and
7.575
5
14,100
6
Freeport
1,500
alterations, repairs and installations. The corresponding percentage distri2
5,500
3
Granite City
for the suburban cities, 66.7,
118.600
19
65,150
23
bution for Chicago was 20.3. 74.2 and 5.5;
76,500
17
Joliet
4,625
12.3%.
and
42.7,
45.0,
cities,
2
remaining
1
5,200
the
3,450
for
and
3
Kankakee
15.6, and 17.7%;
17.365
18
18,819
24
residential buildings authorized.
81,435
22
Moline
The January reports show a total of 172
2,500
1
Murphyshore
families. Seventy-three of these
17,500
5
4
to cost $1,341,694 and to provide for 235
18,500
67,000
7
Ottawa
99 families, were to be erected
75.650
20
176,750
40
124,750
41
buildings, to cost $629.900 and to provide for
Peoria
55.400
7
in
families,
53
suburban
for
9
18,500
provide
50,210
to
and
Quincy
4
115,210
in Chicago; 25, to cost 3304.900
44
169.940
47
35,635
24
provide for 83 families, in cities
Rockford
9,490
16
Cities; and 74, to cost $406.894 and to
119,452
21
11,980
31
Rock Island
150,625
29
area.
97,952
metropolitan
47
66,605
the
Outside
35
Springfield
41.000
17
the
authorized
in
were
buildings
41.995
14
50.530
16
Waukegan
During the month, 143 non-residential
expenditure of 52.760,355. Of this total,
n mi.............., ......1...o.hoico corrections in the figures for Rock Island.
45 cities, involving an estimated
1930, L9811(1 of the
cities,
14.0%
and
suburban
the
January
in
the
In
presented
2.6%
those
Chicago,
x These figures differ from
83.4% was to be spent in
alterations, repairs and "Bulletin" because of the addition of figures for Alton, Kankakee and Ottawa, and
In the remaining cities. Permits for additions,
Island.
Rock
for
mares
The
estimated corrections in the
installations to 438 buildings were issued during the month.
TABLE 2-TOTAL NUMBER AND ESTIMATED COST OF BUILDINGS
BASED ON PERMITS ISSUED IN 45 ILLINOIS CITIES FROM JANUARY THROUGH DECEMBER 1930, BY CITIES.
Jan.-Dec. 1930.
Cities.
Total all cities
No.of
Mos.
Estimated
Cost.
Jan.-Dec. 1929.
No. of
Bides.
Estimated
Cost.
24,639 $132,116,880 a36,016 a$297296043
Metropolitan area
14,751 5105,395,672 22,762 $256,985,858
Chicago
10,752 $87,237,187 16,644 $213,978,140
Metropolitan area excluding Chicago
Berwyn
Blue Island
Cicero
Evanston
Forest Park
Glencoe
Glen Ellyn
Harvey
Highland Park
Kenilworth
La Grange
Lake Forest
Lombard
Maywood
Oak Park
Park Ridge
River Forest
West Chicago
Wheaton
Wilmette
Winnetka
Total outside metropolitan area
Alton
Aurora
Batavia
Bloomington
Canton
Centralia
Danville
Decatur
East St. Louis
Elgin
Freeport
Granite City
Joliet
Kankakee
Moline
Murphysboro
Ottawa
Peoria
Quincy
Rockford
Rock Island
Springfield
Waukegan
3,999 $18,158,505
455
282
241
513
195
97
103
212
193
42
93
192
80
250
315
248
72
44
67
186
119
5938,295
372,247
1,117,349
3,152,450
338,905
712,197
473,037
349,477
1,008,655
446,578
739.150
1,900,829
271,351
706,391
1,861,455
612,775
439,843
73,586
266,000
903,285
1,394,650
6,108 543,007,716
725
338
569
735
267
141
133
394
317
79
181
255
154
304
529
330
116
52
65
226
198
53,543,039
1,171,209
3,611,663
8,196,300
980,559
1,505,072
876,650
1,252.237
2,296,605
826,395
1,248,185
2,662,172
374.227
1,082,509
5,720,895
1,834,846
1,547.795
93,414
754,400
1,683,004
1,746,540
9,888 $26,721,208 13,264 $40,310,187
445
704
40
129
88
30
139
447
655
627
183
65
440
82
933
3
101
1,179
240
1,038
973
988
359
$1,120,158
1,435,312
90,945
538,700
194,523
132,350
378,347
1,991,315
1,389,304
741,616
604,786
315,400
2,479,540
254,102
1,353,354
4,800
286,550
3,473,395
1,031,674
2,854.090
979,408
3,286,369
1.785,170
554
824
38
197
85
29
228
839
1,178
787
226
97
582
142
1,085
3
176
1,207
321
1,653
1,240
1,124
649
$958,150
2,238,331
67,135
1,118,300
389,825
336,500
1,129,976
3,890.215
2,471,711
1,380,359
1,143,163
445,800
3.333,734
1,040,353
2,279,678
11,500
658,450
3,603,660
831,750
5,083,592
2,251,454
3,159,641
2,486,910
a These revised totals include the figures for Kankakee, not reported heretofore,
and corrections in the figures for Rock Island.
Favorable Lumber Order Ratio Continues.
For the eighth consecutive week lumber orders exceeded
production by a substantial margin during the week ended
Feb. 21, it is indicated in telegraphic reports from 815
leading hardwood and softwood mills to the-National Lumber Manufacturers Association. New business at these mills
was 22% greater than the cut. Shipments were 16% above
production, which amounted to 194,409,000 feet. A week
earlier 824 mills reported orders 22% above a cut of 191,232,000 feet. Similar ratios have been maintained since the
Christmas holidays. Reports by identical mills affording
comparison with conditions a year ago show-for softwoods,
483 mills, production 40% less, shipments 28% less and
orders 25% less than for the week a year ago; for hardwoods,
188 mills, production 41% less, shipments 35% less and
orders 27% under the volume for the equivalent week last
year.
Lumber orders reported for the week ended Feb. 21 1931,
by 596 softwood mills totaled 208,971,000 feet, or 21%
above the production of the same mills. Shipments as reported for the same week were 202,854,000 feet, or 18%
above production. Production was 172,252,000 feet.
Reports from 240 hardwood mills give new business as
28,517,000 feet, or 29% above production. Shipments as
reported for the same week were 22,836,000 feet, or 3% above
production. Production was 22,157,000 feet.
Reports from 512 softwood mills give unfilled orders of
747,073,000 feet, on Feb. 21 1931, on the equivalent of 15
days' production. This is based upon production of latest
calendar year-300-day year-and may be compared with
unfilled orders of 526 softwood mills on Feb. 14 1931, of
753,694,000 feet, the equivalent of 15 days' production.
The 447 identical softwood mills report unfilled orders as
723,462,000 feet on Feb. 211931, as compared with 1,039,
121,000 feet for the same week a year ago. Last week's production of 483 identical softwood mills was 165,120,000 feet,
and a year ago it was 276,381,000 feet; shipments were
respectively 194,762,000 feet and 270,194,000; and orders
received 201,501,000 feet and 270,112,000. In the case of
hardwoods, 188 identical mills reported production last
week and a year ago 20,051,000 feet and 33,723,000; shipments 20,084,000 feet and 30,975,000; and orders 25,101,000
and 34,219,000.
1499:
FINANCIAL CHRONICLE
FEB. 28 1931.]
•
West Coast Movement.
The West Coast Lumbermen's Association wired from Seattle the following new business, shipments and unfilled orders for mills reporting for
the week ended Feb. 21:
UNSHIPPED ORDERS.
SHIPMENTS.
NEW BUSINESS.
Feet.
Feet.
Fed.
Coastwise and
Domestic cargo
Domestic cargo
delivery_ _ _ _ 43,777,000 delivery_ - - _174,527,000 interooastal _ 48,288,000
121,860.000 Export
19,799,000
Export
28,025.000 Foreign
128,171,000 Rail
37.507,000
Rail
41,576,000 Rail
Local
6,942,000
6.942,000
Local
424,558.000 Total
112,536,000
120,321,000 Total
Two hundred and twenty-four mills report production for the week
as 105,071,000 feet.
For the year to Feb. 14 168 identical mills reported orders 9.4% above
production, and shipments were 8% above production. The same number
of mills showed a decrease in inventories of 2.3% on Feb. 14, as compared
with Jan. 1.
Southern Piro Reports.
The Southern Pine Association reported from New Orleans that Par
141 mills reporting,shipments were 11% above production, and orders 21%
above production and 9% above shipments. New business taken during
the week amounted to 45,780,000 feet, (previous week 45,045,000 at 148
mills); shipments 41,979,000 feet, (previous week 41,097,000 feet); and production 37,971,000 feet, (previous week 39,889,000 feet). Orders on hand
at the end of the week at 123 mills were 118,839,000 feet. The 127 identical
mills reported a decrease in production of 37%, and in new business a
decrease of 25%, as compared with the same week a year ago.
The Western Pine Manufacturers Association, of Portland, Ore., reported production from 87 mills as 15,155,000 feet, shipments 22,490,000
and new business 18,876,000 feet. Sixty-one identical mills reported production 49% less and new business 45% less, compared with the same week
of 1930.
The California White & Sugar Pine Manufacturers Association, of San
Francisco, reported production from 25 mills as 4,435,000 feet, shipments
14,923,000 and orders 14,761,000 feet. The same number of mills reported
a decrease of 39% in production and a decrease of 26% In orders, compared
with the corresponding week last year.
The Northern Pine Manufacturers, of Minneapolis. Minneseta, reported
production from 7 mills as 2,096,000 feet,shipments 2,470.000 and new business 4,113,000 feet. The same number of mills reported pr,euction 8%
more and new business 27% more compared with the same week last year.
The Northern Hemlock and Hardwood Manufacturers Association, of
Oshkosh, Wis., reported production from 21 mills as 1,988,000 feet, shipments 1,278,000 and orders 1,135,000. Nineteen identical mills reported
a decrease of38% in production and a decrease of 15% in orders, when compared with the same week of 1930.
The North Carolina Pine Association, of Norfolk. Va., reported production from 90 mills as 5,536,000 feet, shipments 7,178,000 and new business
3,985,000. Forty-six identical mills reported production 46% less and new
business 43% less, in comparison with the same week last year.
Total
Hardwood Reports.
The Hardwood Manufacturers Institute, of Memphis, Tenn., reported
production from 219 mills as 18,206,000 feet, shipments 20,910,000 and
new business 26.386,000. One hundred and sixty-nine identical mills reported production 41% less and orders 23% less, in comparison with the
same week last year.
The Northern Hemlock and Hardwood Manufacturers Association, of
Oshkosh, Wis., reported production from 21 mills as 3,951,000 feet. sh10ments 1,926,000 and orders 2,131,000. Nineteen identical mills report
a decrease of 37% in production and a decrease of 51% in new business,
compared with the same week in 1930.
CURRENT RELATIONSHIP OF SHIPMENTS AND ORDERS TO PRODUCTION FOR THE WEEK ENDED FEB. 21 1931 AND FOR SEVEN
WEEKS TO DATE.
Association.
Southern Pine:
Week-141 mill reports
7 weeks-988 null reports
West Coast Lumbermen's:
Week-224 mill reports
7 weeks-1,568 mill reports
Western Pine Mfrs.:
Week-87 mill reports
7 weeks-609 min reports
California White & Sugar Pine:
Week-25 mill reports
6 weeks-152 mill reports
Northern Pine Manufacturers:
Week-7 mill reports
7 weeks-49 mill reports
No.Hemlock&Hardwood(Softwoods):
Week-21 mill reports
7 weeks--183 mill reports
North Carolina Pine:
Week-90 mill reports
7 weeks-633 mill reports
Softwood total:
Week-596 mill reports
7 weeks-4,182 mill reports
Hardwood Manufacturers Inst.:
Week-219 mill reports
7 weeks-1,463 mill reports
Northern Hemlock & Hardwood:
Week-21 mill reports
7 weeks--183 mill reports
Hardwoods total:
Week-240 mill reports
7 weeks-j,646 mill reports
Grand total:
Week-815 mill reports
7 weeks-5.645 mill reports
Produelion
M Ft.
Shipmenu,
M Ft.
P. O.
of
Prod
Orders
M Ft.
P. C.
of
Prod.
37,971
265,508
41,979 111
268,629 108
45.780
308,049
121
118
105,071
672,489
112,536 107
718,014 107
120,321
773,206
115
115
15,155
114,180
22,490 148
186,471 163
18,878
161,647
125
142
4,435
26,051
14,923 336
88,708 341
14,761
87,259
333
335
2.096
5,517
2,470 118
17,039 309
4,113
19,441
196
352
64
67
1,135
9,681
57
70
7,178 130
51,368 133
3,985
39,725
72
103
202,854 118
172,252
1,138,294 1,357,473 119
208,971
1,398,988
121
123
20,910 115
135,559 117
28,386
148,533
145
128
49
58
2,131
21,600
54
66
22,836 103
163,817 104
28,517
170,133
129
115
225,690 118
194,409
1,284,819 1,511,290 118
237,488
1,569,121
122
122
1,988
13,891
5,536
38,658
18,206
115,977
3,951
32,548
22,157
148,525
1,278
9,244
1,926
18,258
West Coast Lumbermen's Association Weekly Report.
According to the West Coast Lumbermen's Association,
reports from 224 mills show that for the week ended Feb. 14
1931, there were produced a total of 99,773,413 feet of
lumber, 113,548,313 feet ordered and 102,066,226 feet
shipped. This compares with 99,316,061 feet produced.,
106,678,748 feet ordered and 105,905,636 feet shipped in
the preceding week. The Association's statement follows: •
1500
FINANCIAL CHRONICLE
[VOL. 132.
COMPARISON OF CURRENT AND PAST PRODUCTION AND WEEKLY
OPERATING CAPACITY (342 IDENTICAL MILLS).
(All mills reporting production for 1930 and 1931 to date).
116,886,723 feet
Actual production week ended Feb. 14 1931
111,151,803 feet
weekly
production six weeks ended Feb 14 1931
Average
160,873,967 feet
Average weekly production during 1930
198,222,509 feet
Average weekly production last three years
300,846,103 feet
rt,,Weekly operating capacity
x Weekly operating capacity is based on average hourly production for the twelve
Last months preceding mill check and the normal number of operating hours per week.
WEEKLY COMPARISON (IN FEET) FOR 224 IDENTICAL MILLS-1931.
(All mills whose reports of production, orders and shipments are complate
for the last four weeks.)
Jan. 24.
Jan. 31.
Feb. 7.
Week EndedFeb. 14.
Production
99.773,413 99,316,061 93,012,133 96.996,737
113,548,313 106,678,748 110,796,974 108,098,643
Orders (100%)
41,411,114 39,124,552 37,057,477 38,286,436
Rail(36%)
Domestic cargo (39%)...,._ 44,218,769 42,070.309 37,635,737 44,196,355
19,893,295 16,280,652 24,225,903 18,725,360
Export (18%)
6,890,492
9,203,235 11,877,857
8,025,135
Ural (7%)
102,066,226 105,905,636 109,472,270 87,840,485
Shipments (100%)
35,465,543 33,828,883
36,521,345
35,789,434
Rail(35%)
39,649,804 46,985.000 47.844,233 33,677,800
Domestic cargo (39%)
18,601,853 13,196,056 14,284,637 13,443,250
Export (18%)
6,890,492
9,203,235 11,877,857
8,025,135
Local (8%)
410,635,379 409,517,330 411,153,502 413,677,200
Unfilled orders (100%)
118,214,298
117,624,713
119,751,948
121,758,369
Rail(30%)
177.219,535 177,050,453 182,714,118 195,055,850
Domestic: cargo (43%)
111,657,475 112,714.929 110,225,086 100,996,637
Export (27%)
198 IDENTICAL MILLS.
(All mills whose reports of production, orders and shipments arc complete for 1930
and 1931 to date.)
Average 6
Average 6
Weeks Ended 1Veeks Ended
Week Ended
Feb. 14 1931. Feb. 14 1931. Feb. 15 1930.
126,695,258
91,614,044
96,147,869
Production (feet)
130.472,810
100,740,703
108,038,325
Orders (feet)
97,543,000
124.325.603
97.384,646
Shipments (feet)
DOMESTIC CARGO DISTRIBUTION WEEK ENDED FEB. 7 '31 (113 mills)
The stipulations are that there will be no efficiency experts, that the
old schedule in force prior to Feb. 16 will be put back in operation and
that a committee of mill workers will be met to consider any disputes in
the future. The strie committee asked that the workers be paid time
and a half for overtime. This the mill officials declined to do.
The polling of the strikers took place tonight at the close of an
exciting day marked by efforts of a citizens' committee to settle the
difficulties between mill owners and operatives, and the arrest of
eleven leaders of the union which attempted to direct the strike.
The arrests occasioned the first violence in connection with the strike
when police invaded the union headquarters.
Snatched from the midst of a group of men, who strove to defend her,
Edith Berkman, organizer for the union, was dragged into the street
fighting fiercely and screaming shrilly to her followers to "carry on."
Just prior to her arrest police invaded the committee headquarters and
emerged with Pat Devine, a national official of the union. Later, after
a furious battle in the rooms of the strike committee, they seized William
Murdock of Philadelphia, another national official, and nine lesser leaders.
Murdock was treated for a scalp wound afte,his arrest.
Five of the leaders were held on conspiracy charges under bail aggregating $100,000. They were Miss Berkman, Devine, Murdock, John C.
Czarnecki and Alex Danilevich, the latter two of Lawrence. Late tonight Devine and Miss Berkman were bailed out.
Unfilled
Orders
Week Ended
Feb. 7 1931
Over 8,000 textile workers are idle today, due to a strike in the combing rooms of the Washington, Ayer and Wood mills of the American
Woolen Company group. While only about 300 workers struck, the
entire mills were forced to close down.
The trouble started, a committee of the strikers charged, when combers
were forced to take on three times as many machines as formerly with
no increase in pay.
A meeting of the American Woolen Company officials held this afternoon appeared to straighten out the difficulty, and the prospects seem
bright for the mills to reopen on Tuesday.
The mill officials stated that the employes may return to work on the
pre-strike basis without discriminations.
. Orders on
Orders
Hand Begin's Week Received.
Feb. 7 1931
Washington and Oregon
Feet.
Feet.
(90 M4143)62,198,248 11,025,349
California
94,048.216 23,148,708
Atlantis Coast
168,700
2,077,962
Miscellaneous
Cancellotions.
Shipments.
Feet.
Feet.
Feet.
525,'20 14,874,626 58,023,951
36,707 24,765,627 92,394,590
51,000 913,357 1,282,305
Total Wash. dr Oregon 158,324,426 34,342.757
Reporting domesticcars
557,254
6,087,092
only (9 intlis)
612.727 40.353,610 151,700,846
164,411,518 34,900.011
748.974 41,834,655 156,727,900
Totals
Bret. Col.(12 Mills)
California
Atlantic Coast
Miscellaneous
138,247 1,481,045
5,027,054
643,869 725,000
9,123,580 2,244,000
7,309,725 4,201,298
None
None
None
None
2,529,000
2,621,345
Total Brit. Columbia_ 17,167,174 7,170,298
Reporting domesticcargo
None
1,135,426
only (2 mills)
None
5,150,345 19,187,127
18,302,600 7,170,298
None
Totals
Total domestic cargo._ 182.714.118 424170.309
None
1,388,869
8,838,580
8,979.678
None
1,135,426
5,150,345 20,322,553
748.974 46.985.0(1(1 177 rim 4.2
United Press advices from Lawrence yesterday (Feb.
27) as given in "The Sun" said:
Approximately 80% of this textile center's striking mill workers went
back to their jobs today.
With some 8,000 operatives already at work again, officials of the
American Woolen Company, whose three local mills were closed by the
walk-out, expressed confidence that virtually all the 10,000 men and
women affected by the controversy would be back by tomorrow.
In its account of the inception of the strike, the New
York "Times" in a Lawrence dispatch, Feb. 21, stated:
Weavers Strike at American Woolen Company Plant
in Maynard, Mass.
From "The Sun" of yesterday (Feb. 27) we take the
following (United Press) from Maynard, Mass.
Some 400 weavers of the Assabet mill, local American Woolen Company plant, have begun a strike for restoration of a recent 1214% wage
cut and discharge of efficiency experts.
The strike was called by the United Textile Workers of America.
Canadian Pulp and Paper Exports in January Valued
Rutherford (N. C.) Textile Plants to Go on Full Time.
at $11,390,293-Decrease of $4,003,065 From PreThe following Associated Press advices were reported
ceding Month and Decline of $4,616,049 as Com24 from Forest City, N. C.
Feb.
pared With January Last Year.
All textile-manufacturing plants in Rutherford will be running full
Canadian exports of pulp and paper in January were time within the next few days.
The spindale group is already on full schedule, as are mills at Forest
valued at $11,390,293, according to the report issued by the City
and Cliffside. Overhauling of the Ellenboro Manufacturing ComOanadian Pulp and Paper Association. This was a decrease pany is practically complete, and its officials announced that full-time
of $4,003,065 from the previous month, and was $4,616,049 work would start soon.
below January of last year, says the Montreal "Gazette" of
Chalmers Knitting Mills at Amsterdam, N. Y., on Full Time.
Feb. 24, from which we also take the following:
From Amsterdam, N. Y., a dispatch Feb. 14 to the New
at
$2,411,533 and exports
Woodpulp exports for the month were valued
of paper at $8,978,760, as compared with $2,577,546 and $12,815,812 In York "Times" said:
the month of December.
Details for the various grades of pulp and paper are as follows:
January 1931.
PulpMechanical
Sulphite bleached
Sulphite unbleached
Sulphate
Screenings
All other
Total
PaperNewsprint
Wrapping
Rook. cwts
Writing. eteta
All other
Tons.
14,545
16,417
11,899
5,577
1,096
253
428,227
1,082,398
537,383
331,952
18,615
12,958
January 1030,
Tons.
21,820
21,619
20.056
9,604
2,211
650,698
1,681,630
993,102
556,509
41,647
49,787
2,411,533
75.310
3.923,584
153,362
1,127
2,243
190
8,641,937
110,194
16,533
2,986
207,110
199.733
1,199
4,040
106
11,609,926
128.276
32,992
717
310.847
8,078.760
12,082,758
Total
Pulpwood exports in January were 79,018 cords valued at $712,116 as
compared with 120,063 cords valued at $1,135,348 in January 1930,
Strikers at Lawrence (Mass.), Mills of American Woolen
Company Vote to Return to Work.
Employes of the three mills of the American Woolen
Company, who had been on strike since Saturday, Feb 21
voted on Feb. 26 to return to work. The vote was 1,651 to
453, according to Associated Press dispatches from Lawrence Feb. 26, which also had the following to say:
three mills afAlthough there are more than 10,000 employes in the
fected, only 2,000 workers cast ballots on the question of returning to
mills will be open
work. Mill officials announced, however, that all three
tomorrow.
The conditions laid down by the mill officials will be observed providing all the workers return to the mills tomorrow.
The Chalmers Knitting Company announced that enough orders were
on hand to keep the plant in operation twenty-four hours daily until
August and within the next few days the company plans to operate all
spinning and knitting machinery adaptable for Winter lines on a twentyfour-hour schedule.
This will insure full-time employment to all employes of these departments. Noticeable improvement in business conditions was given as the
reason for the speeding up.
The plant has been operating for several months on part time.
C. B. Denman of Federal Farm Board Says Low-Priced Grain
and Favorable Corn Feeding Ratio Have Resulted in
Over-Production of Heavy Hogs.
Putting too much fat on hogs, coupled with an unusual
rush to market in January, resulted in an excess of pork
supplies and a consequent sharp decline in prices received
by producers, C. B. Denman, Member, Federal Farm
Board, said in a statement made public in Washington on
Feb. 21. Heavy fat hogs fell about $1.50 a hundred
pounds, bringing down the average price paid in Chicago
last month for all hogs from $8.00 to nearly $7.00 a hundred pounds. Low-priced grain, Mr. Denman suggested,
caused many corn belt farmers to overfeed their hogs, notwithstanding the fact that the average housewife refuses
to buy overfat pork cuts. Co-operative organization, he
said, offers the best and surest way for producers to avoid
depressing the market in this way in the future. The
statement of Mr. Denman follows:
"Low-priced grain and a favorable cern hog feeding ratio have resulted
in an overproduction of heavy fat hogs. The result of such a production
FEB. 28 1931.1
FINANCIAL CHRONICLE
program is best indicated by the storage holding report as of February 1
which has just been issued by the Bureau of Agricultural Economics. In
contrast to the moderate supplies on hand January 1 all stocks of fresh
and cured pork and lard have shown unusually large increases, this being
especially true of frozen and fresh pork.
"Causes for such accumulation are:
1. Increased slaughter of 360,000 head during January.
2. Increased average weight (heavier hogs).
3. Discrimination of housewives against overfat pork cuts.
4. Decreased exports.
"Drastic price declines have occurred as a result of such a piling up
of stocks. An analysis of wholesale prices paid for different cuts indicates
that the sharpest declines have been registered in fresh pork, especially on
heavy loins, which shows nearly $8.00 per hundredweight drop from the
first week of December, 1930 to the first week of February, 1931, these
being quotations at New York City.
"Bacon and light weight hams on the other hand show only moderate
declines of from $1.50 to $3.00 per hundredweight and the bulk of this
decline did not come until mid January. In fact, during most of December bacon prices were equal and even considerably higher on the better
grades than the same period a year ago, even though live hog prices were
$2.00 per hundredweight lower and fresh pork was $3.00 to $4.00 lower.
"Such strength in bacon and ham prices indicates an exceptionally
strong consumer demand for these products.
"An excessively large proportion of heavy hogs in the supply since
January 1 has made for a wide spread in live prices with heavy weights
being severely penalized. Prices of light hogs have remained comparatively steady, around the $8.00 figure at Chicago, while heavy hogs have
dropped as low as $6.50. Due to the increased proportion of heavies in
the supply the average price has dropped close to the $7.00 level at Chicago
and considerably under that at the river markets.
"While it is true that up until mid January hogs have made substantial
returns for feed consumed as compared with prices for grain and while
even at present there is a slight advantage, yet the drastic price decline
in heavy weight hogs has greatly reduced this margin.
"With such rapid accumulation of pork products the past month it
would appear advisable in looking toward the future to ship hogs that
are well finished and save feed for the finishing of fall and early spring
pigs for next summer and early fall markets.
"According to the 1931 outlook as published by the Bureau of Agricultural Economics there is good reason to believe that hog prices from early
July to the end of September will average higher than last year.
"Marketings next summer probably will be smaller than those of last
summer because of slightly smaller crops of fall pigs and because many
farmers in areas of a short corn crop will hold back hogs that ordinarily
would sell at that time in order to fatten out on the new corn crop.
"Briefly summarizing the whole situation, it would appear advisable for
the western corn belt feeder who has surplus stocks of cheap grain on
hand to either feed such grain to fall pigs and market them at lighter
weights this spring or early summer or to save such grain to force early
spring pigs for early fall markets. Such a change in feeding program
would appear to be practical instead of continuing to feed well-finished
hogs to even more excessive weights thus causing a still greater accumulation of heavy pork and lard."
1501
the direction of the Junior League. The setting will be
an outdoor stage, constructed entirely of baled cotton
amid scenes connecting the old South with the new. The
evening's entertainment calls for a Bal Masque to be
held simultaneously at several prominent clubs of the
city. On Tuesday the civic clubs of the city will combine in
giving a luncheon in honor of King Cotton, and in the evening there will be a parade. A Juvenile Style Show to be
held in Confederate Memorial Park will open Wednesday's
program, followed by a Cotton Ball Wednesday evening.
Proceeds from the auctioning of a bale of cotton, donated
by W. H. Payne, together with profits derived from the
sale of tickets, will be equally divided between the Red
Cross for drought sufferers and the Mayor's Unemployment Fund. The week preceding the Carnival will be
devoted by City and County schools to "common cents"
style shows. Each article must be entirely of cotton and
cannot exceed the cost of 99 cents. Textile exhibits showing the many uses of cotton will be furnished by the U. S.
Department of Commerce,the Cotton Textile Institute and
many cotton mills of the country and will be on display in
the lobbies of prominent loop district hotels and theatres.
The slogan adopted by the Carnival is "Consume More
Cotton" and it is planned to make the Carnival an annual
affair. The executive committee in charge of arrangements consists of: Everett R. Cook, Chairman; Herbert
Jennings, Vice Chairman; Mrs. Neely Mallory, Whitfield
King, Bernard L. Cohn, Dr. R. McKinney, A. Arthur
Halle, C. M. Anderson, H. T. Bunn, Mrs. Hubert Terry,
W. D. May and Hayne Barnwell. Memphis Chamber of
Commerce and all other civic bodies, co-operating with
city officials, have combined with the Memphis Cotton
Exchange to make the Carnival an outstanding event.
The annual meeting of the Memphis Chamber of Commerce will be held at the Hotel Peabody on Wednesday
night, Mar. 4. Walter B. Weisenburger, executive President of the St. Louis Chamber of Commerce, will be the
speaker.
Scottish Woolen Industry to Send Mission to United
States—To Study Ways of Improving Wool Trade.
From London a cablegram Feb. 13 to the New York
Large Volume of Cloth Sold by Cotton Mills of Country in "Times"
said:
Recent Weeks According to New York Cotton ExThe Scottish woolen industry's pioneer mission of investigation to the
change Service.
United States and Canada will sail on the Olympic on March 4.
The leading members of the mission will be J. MacPherson Brown, ViceMany cotton mills in this country have sold such a large President
of the National Association of Scottish Woolen Manufacturers;
volume of cloth during the past few weeks that they are E. Sydney Harrison of James Johnson & Co., who will prepare the report
Beckett & Robertson.
now in a stronger position as to stocks and orders than of the mission's survey, and John Hutcheson ofof
Overseas Trade will be
The official member from the Department
at any other time since the Spring of 1927, according to J. Mullins.
the New York Cotton Exchange Service. Total cloth sales
The mission is being sent out for the purpose of increasing trade and
the
during the past few weeks have been considerably in ex- improving the methods of distribution of Scottish woolen goods on
other skle of the Atlantic.
cess of total production during the same period, and on
some lines of goods they have been the largest in any such Painters Threaten to Adopt Half-Size Brush—
period in several years, with contracts running into the
Employers Say Move Would Doubley„Force.
Summer. The Exchange Service under date of Feb. 24
The
following is from the New York "Times" of Feb. 20:
adds
A
housepainters' craft has been seriously en-
hallowed tradition of the
"As in previous weeks the new business was very unevenly distributed
Lewis
over the market, and the goods were sold at very narrow margins. Many dangered, it became known yesterday, when Supreme Court Justice
-brushes, which
important lines sold in only fair volume and did not advance in price in Brooklyn was informed that the five and six inch paint
in
supplanted
enough to compensate for the continued rise in the raw material. But painters have been wielding since time immemorial, may be
those lines of goods which have been very slow sold in increasing quantity, Brooklyn by a new-fangled thing only three inches wide.
Ernest P. Seelman, counsel for the Boss Painters' Association of Long
and price irregularity is now much less pronounced than of late.
"In the grey goods section, heavy goods, including drills, twills and Island, in telling the court of this attack on an ancient custom, said that
ducks, were comparatively inactive. and sheetings were only moderately if the proposal were carried out it would cause grave economic troubles.
improved, but fine goods sold wail in excess of production, and sales The three-inch brush would make it necessary, he said, for just twice as
of print cloths, as stated, were extremely heavy. In the finished goods many painters to do the same work compared with men using the standard
division, bleached cottons were in only moderate demand, but larger brushes.
business was placed on sheets and pillow cases, towels, bedspreads, shillMr. Seelman asked the court to enjoin the International Painters, Paperings, chambrays, and fancy work suit and play suit cloths, while sales hangers and Decorator's Union, Local 102, which he said proposed the threeclearly exceeded current output on printed wash fabrics, printed percales, inch brush, frctn calling a strike on jobs of the Boss Painters' Association.
and flannels."
lie said the union had served notice on contractors regarding the new brush
and the contractors would not tolerate it. As a result, he said, strikes have
been called by the union.
Memphis Cotton Carnival—March 2-4
IIarry
counsel for the union, admitted that the subject of brushes
Plans for what is regarded as one of the largest and had been Kopp,
discussed for some time, but he said the real issue was the emmost elaborate Cotton Carnivals in the south have been ployers' reluctance to abide by a wage scale which had been agreed upon
launched by Everett R. Cook, President of the Memphis some time ago.
"As a
of fact," he told the court, "we are willing to waive any
Cotton Exchange, under the auspices of which the Carnival demand asmatter
to the change in the size of the brush and we are willing to go
is to be staged. Present plans, which have set the date for along with the larger brush, but what we insist is that the employers live
about. We want them to stick
festivities to commence on Monday, March 2, and continue up to the very agreement they are talking agreement
provides for."
to that agreement and pay the scale that
4,
March
ending
Thursday,
call
on
days,
for
elabothree
Justice. Lewis reserved decision.
rate ceremonies to be held on the banks of the Mississippi
as King Cotton, accompanied by his Queen and escort Java Acts to Curb Its Sugar Exports—Government Restricarrive aboard a river packet, laden with hundreds of
tion Part of "5-Year Plan" to Improve Market on
Cotton bales. Amid scenes depicting the early days of
Product.
river travel and heavy cotton cargoes the entourage will
The New York "Evening Post" reports the following
be escorted through flag bedecked streets to City Hall
from Havana Feb. 27:
where Mayor Watkins Overton will make an address of (Associated Press) introduced a bill temporarily restricting sugar
The Government today
a
ceremonies
Following
these
Cotton
welcome.
Style exports which under the measure would be banned entirely without GovShow will be held in Confederate Memorial Park under ernment permissiow.
1502
FINANCIAL CHRONICLE
The maximum exports for the entire Dutch East Indies would be fixed
annually under the measure by government decree. A breach of the
regulations would be punishable by a maximum of a year's imprisonment or a maximum fine of 10,000 guilders (about $4,000). Ships
carrying such exports would be liable to confiscation.
An explanatory memorandum says that the bill was formulated in
conformity with the Chadbourne five-year plan. The Government is
convinced that it offers a reasonable chance of improvement in the sugar
market situation.
President Machado Signs Sugar Decree Limiting Quotas to
Mills Which Ground Previous Two Crops.
Havana advices as follows are taken from the "Wall
Street Journal" of Feb. 26:
President Machado has signed a decree providing that only mills which
ground the last two crcps may have the right to be assigned a quota in
the present year's production. Several mills have objected to the agreement fixing the crop on the average of the last two years.
National Sugar Export Corp. has completed its study to allot each
mill its production quota and will submit the report to President Machado
for his approval.
Petroleum and Its Products-Abandon Hope of Embargo Bill-Developments in East Texas Fields
Seen as Danger to Mid-Continent Fields.
With no possibility of any relief bill being passed in the
few remaining days of the current session of Congress, the
petroleum industry has turned its attention to recent developments in the new fields in East Texas.
With small hope of any effective proration plan being
adopted in the fields, the way now seems open for flush production. This would reach a daily potential of 200,000
barrels within a short time, estimated on the basis of the
numbers of wells under construction and those already in
operation. Further strength is afforded to the theory that
the fields will not be placed under a proration schedule by
the reported signing of several large contracts at present low
prices. With the majority of the wells owned and controlled
by independent operators, it is exceeding difficult for proration adherents to present any acceptable plan.
It was learned that the Sinclair Consolidated Oil Corp.
is contemplating building a pipe line from Rusk Co., Texas,
to a point in Oklahoma where it would connect with the
company's pipeline from the Oklahoma City pools to Coffeyville, Kan. Credence is afforded to this rumor in the news
that the company is inquiring for 35,000 tons of steel pipe,
which would build a pipe line of the approximate required
distance.
The significance of Sinclair's entry into this field on a largo
scale may be readily realized when it is remembered that the
company is a bitter foe of proration as a means of conservation. The company has long been fighting the proration
laws governing the Oklahoma City pools and it is logical
to suppose that it would not have made such extensive preparations in the new fields unless assured that it would find
no obstacles in its way.
The market for oil from these fields, which is selling at
40 cents a barrel, is constantly widening. As it is approximately 60 cents under the Mid-Continent level, it is fast
attracting customers from that territory. This wide spread
must be cut down and the only way in which this can be
done is to lower the Mid-Continent price. While it is
realized that such a move would be likely to seriously endanger the stability of the country's crude oil markets, it is
the only step that the Group 3 producers can take to hold
their market. Such a move may be expected shortly.
There were no price changes posted this week.
prices of Typical Crudes per Barrel at Wells.
(All gravities where A. P. I. degrees are not shown.)
$2.15 Spindletop, Texas, below 25
Bradford, Pa
2.00 Winkler, Texas. below 25
011 City, Pa
1.15 Smackover, Ark., 24 and over
Corning, Ohio
1.05 Smackover, Ark., below 2
Cabell, W. Vs
1.30 Eldorado. Ark.. 40
Illinois
1.15 Rusk. Texas,39.5
Western Kentucky
.98 Urania, La
Mideentinent, Okla., 37
.75 Salt Creek, Wye., 37
Corsicana, Texas, heavy
.67 Sunburst, Mont
Hutchinson. Texas, 40
1.85 Artesia, N. Mel
Kettleman Hills, 55
1.10 Santa Fe Springs, Calif., 33
Kettleman Hills, 35-39.9
1.35 Midway-Sunset. Calif.. 22
Kettleman Hills, 40-49.9
Kettleman Hills, 50-54.9
1.50 Huntington. Calif., 26
Luling, Texas
.75 Ventura, Calif.. 28
SPindletop. Texas.grade A
.80 PetroHa. Canada
5.69
.55
.70
.70
1.07
.40
.75
.98
1.55
.75
1.48
.84
1.22
1.15
1.50
REFINED l'RODUCTS-GASOLINE BULK MARKET SLIGHTLY
EASIER IN SYMPATHY WITH WESTERN MARKETS-KERO-
Despite the unsettled conditions in the Western markets,
the majority of the local marketeers maintained their posted
level of 7
to Sc. a gallon for U. S. Motor gasoline. The
scattered instances of price shading reported were attributed
to "clean up" lots. In fact, few refiners are willing to close
any large contracts at present prices in view of the approach
of spring when the seasonal gain in consumption is expected
to lead the market into higher ground.
Weakness in the Chicago and Mid-Continent gasoline
markets was due to increasing fear of the effects of competition from the new East Texas fields. Production in these
fields is constantly mounting and at the present low offering
prices, the situation presents a serious threat to the stability
of the Mid-Continent markets. The apparent failure of the
proration movement there leaves the way open to flush production which cannot fail to have disastrous affects on the
stability of the country's crude oil markets.
Kerosene was slightly easier although there were no price
changes posted. While posted prices continue at 63c. to
63c. a gallon for 41-43 water white, in tank car lots, at the
refineries, it is possible to do business below this figure on a
strong bid. Demand is below expectations and some marketeers are meeting this situation with cut price offerings.
Domestic heating oils closed the week firm with the price
list steady. Demand is holding up fairly well. Grade "C"
bunker fuel oil is steady at $1.05 a barrel, at the refinery.
Diesel oil is unchanged at $1.85 a barrel, same basis.
Price changes follow:
Feb. 25 1931-Los Angeles-Standard Oil of California to day reduced
the retail prices of gasoline 2 cents a gallon throughout the State. The cut
was promptly met by all large companies operating in California.
Gasoline, U. S. Motor, Tank Car Lots, F.O.B. Refinery.
N. Y.(Bayonne)California
$ 08-.10
N. Y.Stand, 011, N..1 __$ 07%
Colonlal-Beacon_.5.073 Lori Angeles.ex..04U-.07
tStand. Oil, N. Y__ .075
Sinclair Ref
.073'l Gulf Coast. ex .054-.05M
08
TideWater011Co. .07%
NorthLoulstana.04%-.04%
Texas
Richfield 011 (Cal) .07% Crew Levick
075 North Texas-----04-.045j
.04-.0411 Oklahoma
Warner-Quinn:1C° .0754 Chicago
04-.04%
Pan-Am. Pet. Co. .07% NewOrleans ex..05%-.05
Pennsylvania
.06
Shell Eastern Pet_ .08
Arkansas
.0454-.O44 tPlus freight.
Gasoline, Service Station. Tax Included.
New York
5.15 Minneapolis
5.153 Cincinnati
5.182
Atlanta
.15 New Orleans
.22 Cleveland
175
Baltimore
19
17 Philadelphia
.182 Denver
Boston
19
168 San Francisco
.155 Detroit
Buffalo
22
.19 Spokane
.158 Houston
Chicago
159
.21. St. Louis
15 Jacksonville
Kansas CRY
169
Kerosene, 41-43 Water White Tank Car Lots. F.O.B. Refinery.
N.Y.(Bay000e)$.0614-.081rIChirago
$ 02%-.03 SI I New Orleans. ex---$ 0531
North Texas_ _ _03-.03%(Los Angeles. ex.045I-.06
03-.033i
Tulsa
Fuel Oil, F.O.B. Refinery or Terminal.
New York(Bayonne)- ?California 27 plus 13
!Gulf Coast "C".... 5.65-.70
Bunker "C"
3.80-1.05I Chicago 113-22I)...-55-.60
11.05!
Diesel 28-30D
1 h5lNew OrFne 1S-20 D .70-.751
Gas Oil, F. 0. B. Refinery or Terminal.
N. Y.(Bayonne)[Tulsa[Chicago28D plus_ _$ 045f- 053I I 32-360 1nd_$ 01 %-.02% I 32-3813 Ind 5.0'2-.023--4
Weekly Refinery Statistics for the United States.
Reports compiled by the American Petroleum Institute
for the week ended Feb. 211931, from companies aggregating 3,571,200 barrels, or 95.7% of the 3,730,100 barrel estimated daily potential refining capacity of the United States,
indicate that 2,270,400 barrels of crude oil were run to stills
daily and that these same companies had in storage at
refineries at the end of the week 43,608,000 barrels of gasoline and 129,072,000 barrels of gas and fuel oil. Reports
received on the production of gasoline by the cracking
process indicate that companies owning 94.7% of the potential charging capacity of all cracking units manufactured
2,753,000 barrels of cracked gasoline during the week. The
complete report for the week ended Feb. 21 1931 follows:
CRUDE RUNS TO STILLS, GASOLINE STOCKS AND GAS AND FUEL OIL
STOCKS, WEEK ENDED FEB. 21 1931.
(Figures In Barrels of 42 Gallons Each.)
District.
Per Cent
Potential
Capacity
Report(ng.
East Coast
100.0
Appalachian
93.8
Ind., Ill. & Kentucky
97.5
Okla., Kans.Jr Missouri 89.4
Texas
91.9
Louisiana-Arkansas
98.3
Rocky Mountain
93.1
California
98.8
Total week Feb. 21
Daily average
Total week Feb. 14
Daily average
95.7
Total Feb. 22 1930._
Daily average
95.4
C5.7
SENE OFF-HEATING OILS FIRM.
The local refined products market was irregular during the
week reflecting the weakness in the Chicago and Mid-Continent marketing areas. Scattered instances of price shading
in the bulk gasoline market were reported although the
majority of refiners were firm in maintaining their quotations
at the posted levels. Kerosene was slightly easier while on
the other hand heating oils firmed up moderately.
[You 132.
Crude
Runs
to
Stills.
Per Cent
011E7.
of Total
Capacity
Report.
3,155,000
641,000
1,908,000
1,763,000
3,751.000
1)61,000
334,000
3,381,000
73.6
69.1
71.5
61.1
72.1
52.4
34.1
54.4
15,893.000
2,270,400
15,479,000
2,211,300
17,613,000
2,516,100
Gasoline
Stocks.
Gas
and
Fuel
Oil.
Stocks.
7,745,000
1,408,000
4,983,000
3,119,000
7,004,000
1,722,000
1,818,000
15,811,000
7,331,000
1,063,000
3,054 i I 1
3,735.10 1
9,313,000
2,295,000
971,000
101,310,000
63.6
43,608,000
12.1,072,000
61.9
42,859,000
130,316,000
72.2
x51,936,000 y137,992,000
i Texas Gulf Coast
6.933,000
100.0
2,796,000
75.4
5,739,000
c Louisiana Gnu roao
Inn n
610 Ann
01 o
, Kqel nnn
1 2132.000
x Revised due to change in California gasoline stocks. y Revised due to
change in California and Louisiana-Arkansas gas and fuel oil stocks (CaLfornla
+281,000; Louisiana-Arkansas +803,000). z Included above in table for week
ended Feb. 21 1931 of their respective districts.
Nefe.-All crude runs to stills and stocks figures follow exactly the present Bureau
of Mines definitions. In California, stocks of heavy crude and all grades of fuel
0[1 are included under the heading "Gas and Fuel Oil Stocks."
FEB. 28 1931.1
1503
FINANCIAL CHRONICLE
accounted for 63.3% of the world's total, the lowest ratio
Crude Oil Production in United States Continues to
since 1921. The report continues:
Increase.
Based on'annual totals, Venezuela held its position as the second largest
estimates
that
the
Institute
The American Petroleum
producing country, with Russia (U.S.S.R.) in third place. Venezuelan
production held very closely to the 1929 figure, but production in Russia
daily average crude oil production in the United States for reached
a total of 135,165,000 barrels, an increase of 31% over the 1929
2,165,250
barrels,
as
com1931
was
Feb.
21
ended
week
the
calendar year estimate of 103.000.000 barrels. During the latter part of
pared with 2,127,700 barrels for the preceding week, an 1930, it is reported, monthly production in Russia exceeded that of Veneand the Netherland East Indies all recorded inincrease of 37,550 barrels. Compared with the output for zuela. Persia, Rumania
creased production, while the decline in Mexican production continued,
of
2,722,050
Feb.
22
1930
barrels
Per
day,
week
ended
the
with the result that Mexico dropped from fourth to seventh place among
the current figure represents a decrease of 556,800 barrels the world's oil-producing countries, with Persia succeeding Mexico in the
position and followed in order by Rumania and the Netherland
daily. The daily average production east of California for fourth
East Indies. Among the smaller producing countries. Germany made the
was
1,634,850
barrels,
as
comthe week ended Feb. 21 1931
most marked advance, its production exceeding a million barrels for the
pared with 1,599,100 barrels in the preceding week, an in- first time in the post-war period. Bolivia was added to the list of crude
crease of 35,750 barrels. The following are estimates of oil-producing countries during 1930.
WORLD CRUDE OIL PRODUCTION, 19284930
daily 'average gross production, by districts:
(In Thousands of Barrels)
DAILY AVERAGE PRODUCTION (FIGURES IN BARRELS).
Week EndedFeb. 21 '31. Feb. 14 '31. Feb. 7 '31. Feb. 22 '30.
474,250
468,650
Oklahoma
502,550
646,800
119,250
109,250
Kansas
116,150
110.600
53,700
57,000
Panhandle Texas
53,950
89,000
59,350
62,850
North Texas
58,650
81,000
24,150
24,400
West Central Texas_
23.950
53,050
245,500
245,600
244,200
WestTexas
340.700
55,050
49,350
68,350
East Central Texas
23,600
81,100
75,650
78,800
Southwest Texas
66,750
44.550
43,500
44,900
North Louisiana
41.700
49,850
50,050
49,850
58,150
Arkansas
158,900
162.150
157,200
Coastal Texas
175,000
26,100
28,250
26,450
22,950
Coastal Louisiana
99,500
99,100
100,350
Eastern (not including Michigan)
120,400
9,250
9.250
9,350
Michigan
13,800
43,900
50,800
45,550
Wyoming
49,200
9,000
7,200
9,350
8,250
Montana
4,3511
4,400
4,300
Colorado
4,850
41,350
41,250
40,950
New Mexico
10,250
528,600
530,400
527,800
California
806,000
x1930.
Country.
United States
Venezuela
Russia
Persia
Rumania
Netherland East Indies
Mexico
Colombia
Peru
Trinidad
Argentina
India, British
British Borneo (Sarawak)
Poland
Japan (including Taiwan)
Egypt
Sakhalin, Russian
Ecuador
Canada
Germany
Iraq
France
Czechoslovakia
Italy
Bolivia
Other countries
1929.
1928.
Quantity. Per Ct. Quantity Per Cl. Quantity Per Ct.
898,000 63.3 1,007,323 67.9
137,472 9.3
137,675 9.7
y99,507 6.7
135,165 9.5
z42,145 2.8
z45,420 3.2
34,689 2.3
41,680 3.0
38,072 2.6
40,150 2.8
44,688 3.0
39,530 2.8
20,385 1.4
20,346 1.5
.9
13,422
.9
12,458
.6
8,716
.7
0,120
.6
9,391
.6
8,910
.6
8,366
.6
8,280
.4
5,279
.4
5,830
.3
4,988
.3
4,840
.1
2,010
.1
1,950
.1
1,864
.1
1.910
.1
1,076
.1
1,670
.1
1,350
.1
1,559
.1
1,121
.1
1,500
711
.1
1,161
798
750
497
520
.2
93
.1
150
44
63
56
34
30
901,474 68.0
105,749 8.0
y84,704 6.4
43,461 3.3
30,773 2.3
32.118 2.4
50.151 3.8
19,897 1.5
.9
12,006
.6
7,684
.7
9.070
.7
8,741
.4
5.223
.4
5,492
.1
1,944
.1
1,842
677
.1
1,084
624
630
713
512
.3
94
46
Total
2,165,250 2,127,700 2,116,500 2,722,050
The estimated daily average gross production for the Mid-Continent
field, including Oklahoma, Kansas, Panhandle, North, West Central, West,
East Central and Southwest Texas, North Louisiana and Arkansas, for
the week ended Feb. 21 was 1,241,350 barrels, as compared with 1,206,750
barrels for the preceding week, an increase of 34,600 barrels. The Mid24
Continent production, excluding Smackover (Arkansas) heavy oil, was
1,207,850 barrels, as compared with 1.173,300 barrels, an increase of
1 d15 723 1(10.0 1.484.041 100.0 1.324.733 100.0
34,550 barrels.
ended
The production figures of certain pools in the various districts for the
x 1930 figures are subject to slight revision. y Product on for fiscal year
production estimated at 103,000,000 barrels; 1928.
current week, compared with the previous week, in barrels of 42 gallons, Sept. 30: calendar year 1929
structo
actual
production
less
oil
returned
production;
Net
z
87,800,000 barrels.
follow:
ture.
-Week Ended-Week EndedSouthwest TexasFeb. 21. Feb. 14, Non-ferrous Metals Steady in Fair Trade-Copper Firm.
OklahomaFeb. 21. Feb. 14.
Bowlegs
5.800 6,000
13,750 13,150 Chapman-Abbot
30,750 32,750
Bristow-Slick
12,500 12,100 Darst Creek
Although the stock market has been booming with its old9,650 9,650
Burbank
13.400 13,400 Luling
time
vigor during the past week, the non-ferrous metal marFlat
Salt
16,300
City
10,650
Carr
14,800
16,400
Earisboro
17,600 17,900
kets have been relatively quiet and no evidences of any imNorth Louisiana-East Earlsboro
21,700 20,050
1,700 IMO mediate important increases in consumption have become:
South Earlsboro
8.200 7.350 Sarepta-Carteryille
11,450
Konawa
15,650 15,450 2wolle
Arkansas
23,900
Little River
24,950
apparent, "Metal and Mineral Markets" reports, adding:
4,400 4450
,
East Little River
9,550 10,250 Smackover, light
Sentiment, however,has undoubtedly improved coincident with the higher
33,500 33.450
2,400 2,500 Smackover,heavy
Maud
prices for shares.
Mission
8,400 7,800
Coastal Texas105,950 88,750
Sales of all the major metals have been about the same this week as last.
Oklahoma City
22,600 23,000
21,700 20,650 Barbers Hill
St. Louis
Copper and lead are firm at the
8,900 8.350 with lead giving the best account of itself.
5,800 5,350 Raccoon Bend
Searight
33,500 34,000 higher price; set a week ago, and tin seems fairly well established above 27
13,600 14,500 Refugio County
Seminole
12,000 11,900 cents. Zinc, on the other hand, has weakened a little more, dropping below
1,950 1,900 Sugarland
East Seminole
4 cents, and equaling the low of last October.
Coastal LouisianaKansasThe lO3 cents, delivered, copper price, to which all sellers advanced a
2,450 2,600
svalgwiva County
21,000 20,800 Bast Hackberry
gro week ago yesterday, ruled throughout the past week. A good tonnage
800
Voshtl
22,250 26.900 Old Hackberry
Wyominybooked for export led some sellers to press for an advance in price. So far,
26,900 25.250 the more
Salt Creek
Panhandle Texasconservative element has had its way, but if foreign demand does
ifontanaGray County
41,350 40,600
4,500 4.500 not abate it seems likely that another quarter of a cent may be added to the
Hutchinson County.... 7,750 8,750 Kevin-Sunburst
price before long. The domestic market gives little encouragement for such
New Mexico31,800 32,700 a move, however,since sales have approximated only a thousand tons a day
North TexasHobbs High
6.750
6,250
archer County
12,500 12,550 Balance Lea County__
for the last two weeks.
North Young County
California8,400 8,500
Lead enjoyed a good call at the higher prices-4.60 cents, New York.
Wilbarger County
10,000 10,500 Eiwood-Ooleta___ _ _____ 31,500 31,600
21,300 21,700 and 4.35 cents, St. Louis-but buying was not quite so active as in the two
Huntington Beach
West Central Tams15.000 15,000
Inglewood
market reflects the re27,000 27,000 preceding welts. The firmer tone in the domestic
South Young County.- 2,500 2,500 Kettieman Hills
Long Beach
94,300 93,600 cent improvement in buying, as well as the steadiness in London.
West TexasMidway-Sunset
53,000 53,000
The course of zinc has been counter to the general current of metal
Crane & Upton Counties 24,300 24,600 Playa Del Rey
32,500 33,000 quotations. Sellers are disposed to be bullish on zinc for the late spring and
Ector County
8.600 6.500 Santa Fe Springs
71,000 70,400
in prices.
Howard County
26,550 27.150 Seal Beach
15,000 13,200 summer, but any optimism they may feel is not yet reflected
Reagan County
29,150 31,550 Ventura Avenue
45,000 45,500
Winkler County
50.050 52,000
Pennsylvania Grade-92,250 88,700 Allegany
6,200 6.850 Steel Output Continues to Increase-Price of Steel
Yates
Balance Pecos County.- 3,400 3,600 Bradford
21,850 21,250
Kane to Butler
Scrap Higher-Upward Trend of Iron and Steel
6,550 6,650
East Central TexasSoutheastern Ohio
6,700 6,300
Demand is Unchecked.
Rusk A Gregg Counties_ 25,300 12,150 Southwestern Penna._
3,300 3,150
30,600 30,550 West Virginia
Van 2andt County
13,750 13,300
and steel demand has not been
The
World's Production of Crude Petroleum in 1930 Estimated at 1,418,723,000 Barrels, a Decrease of 4%
as Compared with the Preceding Year-Ratio of
United States Output to the World Output
Dropped from 67.6% in 1929 to 63.3% in 1930.
The world's production of crude petroleum during 1930
reached a total of 1,418,723,000 barrels, a decrease of 65,318,000 barrels or 4% from the total of 1,484,041,000 barrels recorded for 1929, according to preliminary figures compiled by E. B. Swanson, Chief Economist of the Division of
Petroleum Economics, Department of Commerce, United
States Bureau of Mines. United States production dropped
from 1,007,323,000 barrels in 1929 to approximately 898,000,000 barrels in 1930, a decline of about 109,000,000 barrels
or 11%. Production in countries other than the United
States, however, increased from a 1929 total of 476,718,000
barrels to 520,723,000 barrels in 1930, an increase of 44,005,000 barrels or 9%. United States production, consequently,
upward trend of iron
checked, although the rate of gain is still gradual, the "Iron
Age" of Feb. 26 reports. Business from the automobile industry has shown further improvement, specifications for
line pipe, tin plate and track materials continue to increase,
and releases from miscellaneous consuming lines are in larger
volume. Caution remains the dominating note with most
buyers and current orders are notable for their greater
frequency rather than for their size. The "Age" also states:
Distribution of tonnage is uneven both as to products and mills and there
are wide divergencies in the operations of different companies and of different
departments in the same organization. But raw steel requirements continue
to expand in the aggregate. Ingot output in the Valleys has increased
from 50 to 55% of capacity and there have been smaller gains at Chicago.
Cleveland and Birmingham. Steel ingot production for the country at large
is estimated at 52%.compared with 51% a week ago.
Purchasers of steel by the automobile industry are the largest since last
September. In most cases the orders-mainly for sheets and strips-are
to cover immediate production requirements. Ford assemblies, which
totaled 55,000 in January. are expected to reach 75,000 this month and may
run as high as 100,000 in March. Other motor car makers are also increasing their schedules.
The same seasonal influences that are apparently stimulating automobile
demand are also affecting other steel consuming lines in varying degree.
1504
FINANCIAL CHRONICLE
Concomitant with recent pipe line releases close to 200,000 tons of projected work has recently come into the market, not counting 14.000 tons
for a Rumanian line on which American mills are figuring. The week's
additions to the pending list call for about 50,000 tons and include 35
miles of pipe for the Standard Oil Co. of New Jersey. 85 miles for the Texas
Co.,70 miles for the Standard Oil Co. of New York, and lines for the Trojan
Engineering Co. and the New York Utilities Co.
General construction work offers greater promise as the spring months
approach. The large amount of structural steel now being figured on,
much of it for public works, has been swelled by new inquiries for 30.000
tons. Fresh reinforcing bar projects call for 15,500 tons, and the concrete
bar requirements of the 1931 highway program are now estimated at 500,000
tons. The week's fabricated structural steel awards, at 55,000 tons, are
the second largest this year and include two contracts for Cincinnati railroad
terminal work, which alone accounts for 41.000 tons.
Tin plate production has risen to 75% of capacity, compared with 70%
a week ago, and output of rails and track supplies has shown a further
slight gain, rail mill operations at Chicago having increased to 53% from
a 50% rate.
The Western Maryland is in the market for 10.000 tons of rails and the
Milwaukee will soon inquire for 23,000 tons. Railroad demand for cars
is dormant, but the steel industry sees a large new outlet for tonnage in the
electrification of the Pennsylvania from Philadelphia to Washington and to
Pittsburgh. This program, which will be expedited, involves an expenditure of $170.000,000 and calls for the building of 240 electric locomotives
and the construction of viaducts, overhead transmission towers and railroad
stations requiring 200,000 tons of steel.
Ship steel soon to be bought includes 6,000 tons for a United States cruiser
and 12,000 tons for three vessels to be built for the Eastern Steamship
Lines
Price indications are inclusive. Heavy melting scrap has advanced
25c. a ton at Pittsburgh and is stronger in tone at Chicago, but has declined
50c. at Detroit and 25c. a ton at St. Louis. Increased production of scrap
by the motor car industry is a weakening factor at Detroit, while a larger
influx of material that is ordinarily exported through Gulf ports has had an
unsettling effect at St. Louis.
Finished steel prices are still under pressure, but concessions appear to be
diminishing in frequency. On the one hand, evidences of expanding demand have given the mills greater confidence: on the other hand, most
current orders are individually too small to give the market a severe test.
There is less talk of possible attempts to advance prices for the second
quarter.
Copper has been advanced in the past week from 10c. to 10 Cc.. delivered
Connecticut valley. It has risen
c. a lb. since Feb. 9.
The Treasury Department has ruled that there has been no dumping
of manganese ore from Soviet Russia and has declined to issue an antidumping order.
Exports of iron and steel in January, 92,743 tons, were the smallest since
August. 1921.
The "Iron Age" composite price for heavy melting scrap has advanced
from $11.08 to $11.17 a ton, the first rise since Jan. 6. The pig iron and
finished steel composites are unchanged at $15.71 a ton and 2.142c. a lb.
respectively. A comparative table follows:
Finished Steel.
Feb. 24 1931. 2.142e. a Lb.
Based on steel ball, beams, tank Platen.
One week ago
2 1420. wire, rails, black pipe and sheets
One month ago
2.142c. These products make 87% of the
One year ago
2.312e.
United States output.
High.
Low.
1931
2 142e. Jan. 13
2.121o.m
ian. 6
1930
2.362c. Jan. 7
2.121c. Dec. 9
2.4120. Apr. 2
1929
2.362c. OM. 29
1928
2.391e. Dec. 11
2.314c, Jan. 3
1927
2.453e. Jan. 4
2.293e. Oct. 26
2.453c. Jan. 5
1926
2.403c. May 18
2.560e. Jan. a
/925
2.396e. Aug. 18
Pig Iron.
Feb 24 1 .515.71 a Gross Ton.
Based on average of basic iron at valley
One week tv,
$15.71
furnace and foundry irons at Chicago.
One morn) go
15.90
Philadelphia...Buffalo. Valley and Bk.
One year o
17.92
mingham.
High.
1931
$15.90 Jan. 6
815.71 Feb. 17
1930
18.21 Jan. 7
15.90 Dec. 16
1929
18.71 May 14
18.21 Dec. 17
1928
18.59 Nov. 27
17.04 July 24
1927
19.71 Jan. 4
17.54 Nov. 1
1920
21.54 Jan. 5
19.48 July la
1925
22.50 Jan. 18
18.96 JUIF 7
Steel Scrap.
Feb 24 1931. $11.17 a Gross Ton.
Based on heavy melting steel quoOne week ago
$11.08
tations at Pittsburgh, Philadelphia
One month ago
11.21
and Chicago.
15.00
One year ago
High.
Low.
811.33 Jan. 6
1931
811.08 Feb. 17
15.00 Feb. 18
1980
11.25 Dee. 11
17.58 Jan. 29
1929
14.08 Dec. 3
16.50 Dec. 31
1928
13.08 July 2
16.24 Jan. 11
1927
13.08 Nov. 22
17.25 Jan. 5
1925
14.00 June 1
20.83 Jan. 13
1925
15.08 May 5
Raw steel production is holding steady, concluding Februa fractional increase over last week-ary at about 53%
compared with 48% when the month opened, "
Steel" of
Feb. 26 states in its summary of iron and steel conditions.
Finishing mill operations have registered slight gains, especially in bars, sheets and tin plate, foreshadowing further
improvement in the ingot rate. "Steel" further goes on
to say:
Releases for finished steel are moderately broader, orders being individually small but emanating from a wide variety of users. In fact,
the most encouraging phase of the market situation is the fact that demand
Is well distributed and many consumers who have not been in the market
for many weeks are again taking material.
Statistically, a greater tonnage of pig iron and steel ingots was produced
and shipped in February than in January. Considering all products, the
industry will enter March with more specifications for immediate rolling
than a month ago. Sentimentally at least, the price structure is stronger
than at the beginning of February.
Producers increasingly realize that current prices are not nutritious and
each weekly gain in production speeds more remunerative levels, but there
Is a diversity of opinion whether the present is a propitious time for advancing prices. Regardless of the intrinsic merit of a rise, the determining
factor likely will be its effect upon the recovery in demand which daily
seems to be getting on more solid ground.
Within the next fortnight, when second quarter books are opened, the
decision in regard to individual products will be made. As yet there is no I
[VeL. 182.
serious inquiry for the next quarter. One maker of wire products favors a
$2 per ton advance. In heavy finished steel and some grades of sheets a
rise also is being discussed. Willingness of some pig iron producers to
accept second quarter business at current levels indicates an unchanged
situation there.
The award of 39,240 tons of structural material for the Cincinnati Union
Terminal, of which 22,000 tons was booked by the R. 0. Mahon Co.,
Detroit, and 17,240 tons by the McClintic-Marshall Corp., Bethlehem,
Pa., made this week's structural lettings, at about 60,000 tons, the heaviest
in 11 months.
Pending work is also large, the most active inquiries being for 45,000 to
50,000 tons for the Canadian National railroad terminal at Montreal and
15,000 tons for a parcel post building in New York. Concrete reinforcing
bar work for industrial and construction uses lags, but one estimate places
consumption for Federal road work this year as high as 300,000 tons, or
double 1930.
Railroad participation in the steel markets is practically limited to track
fastenings, of which Chicago mills alone have booked 6,000 tons. Prospective rail buyers are the St. Paul of 23,000 tons and Western Pacific of
10,350 tons.
A Pittsburgh independent mill has booked 7,000 tons of steel pipe for the
Magnolia Petroleum Co., Dallas, Tex. Distribution of 30,000 tons by the
North Central Gas Co. is near. Cast iron pipe for spring work at New
York and Chicago is more active.
Due largely to increased consumption by the automotive industry, pig
iron shipments in the Lake region are improving steadily, though featureless
in most other districts. Coke continues inactive and unchanged. Scrap
activity is only moderate, with price changes evenly divided between slight
rises and recessions.
Preliminary statistics place January exports of iron and steel at 92.745
tons, a decline of 9,443 tons from December, while imports rose 27 tons
to 40,781 tons.
"Steel's" market composite is unchanged this week at $31.61.
An increase of about 2% is shown in the estimated production of steel ingots for the week ended last Monday, (Feb.
23), stated the "Wall Street Journal" this week.
The
average for the industry is placed at better than 52%, the
best of the year, compared with 503% in the preceding week
and 493
. % two weeks ago. The "Journal" adds:
For the U. S. Steel Corp. the output is reported at a good fraction in
excess of 53%, which is the highest rate attained thus far this year. In
the previous week the rate was slightly under 52%, while two weeks ago it
was around 53%.
Leading Independents show an estimated gain of more than 2%, with the
rate approximately 51H% contrasted with a shade over 49% in the week
before and around 47% two weeks ago. This is also the highest rate so
far this year.
In the corresponding week of 1930 there was no change in the operations
of the Steel Corp. which were maintained at between 85% and 86%. while
independents were down 2% to 75%, and the average was off more than
1% to under 80%.
Toward the end of February in 1929 the industry was running at 83%,
with the Steel Corp. at 90% and independents around 77%. In the same
week of 1928 the average was 83'A%. the Steel Corp. being at 91% and
Independents at 77%.
Chicago steel sheet makers are operating at 60% of capacity compared
with 55% last week.
Production of Bituminous Coal and Pennsylvania
Anthracite in January Shows a Decline as Compared with Same Month Last Year.
According to revised figures for the month of January 1931,
released by the United States Bureau of Mines, Department
of Commerce, there were produced during that month 38,542,000 net tons of bituminous coal and 6,157,000 tons of
Pennsylvania anthracite, as compared with 39,716,000 tons
of bituminous coal and 6,086,000 tons of Pennsylvania
anthracite in the preceding month and 49,778,000 tons of
bitumious coal and 7,038,000 tons of Pennsylvania anthracite during the month of January 1930. The average daily
rate of production of bituminous coal in January 1931 totaled
1,465,000 net tons as against, 1,886,000 tons in the corresponding month last year and 1,528,000 tons in December
1930. The Bureau's statement follows:
MONTHLY PRODUCTION OF BITUMINOUS COAL AND ANTHRACITE
IN JANUARY (NET TONS).
Bituminous.
MoniO.
Anthracite.
No. of Average
No. of Atterage
Total
Working per WorkWorking per WorkTotal
Day.
Day. Produaton. Days,
Prod uetin. Days.
l930-November___ 38,122,000 / 23.3
December_ __ 39,716,000 • 26.0
1931-January
38,542.000 26.3
1,636.000 5,207,000
1,528.000 6,086,000
1,465,000 6,157,000
23
26
26
226,400
234,100
236,800
1930-January
1,886,000 7.038,000
26
270,700
49,778,000 026.4
Output of Bituminous Coal and Pennsylvania Anthracite Continues Below Rate a Year Ago.
According to the United States Bureau of Mines, Department of Commerce, production of bituminous coal and
Pennsylvania anthracite for the week ended Feb. 14 1931,
showed an increase as compared with the preceding week, but
continued below that for the corresponding period in 1930.
During the period under review there were produced a total
of 8,209,000 net tons of bituminous coal, 1,595,000 tons'of
Pennsylvania anthracite and 41,900 tons of beehive coke.
This compares with 10,224,000 tons of bituminous coal,
1,707,000 tons of Pennsylvania anthracite and 66,800 tons:of
FEB. 28 1931.]
1505
FIN'A.NCIAL CHTIONICTLE
beehive coke in the week ended Feb. 15 1930, and 7,833,000
tons of bituminous coal, 1,454,000 tons of Pennsylvania
anthracite and 41,900 tons of beehive coke in the week
ended Feb. 7 1931.
During the coal year to Feb. 14 1931, the production of
bituminous coal amounted to 391,108,000 net tons as
against 465,239,000 tons in the coal year to Feb. 15 1930.
The Bureau's statement follows:
BITUMINOUS COAL.
The total production of soft coal during the week ended Feb. 14, including
lignite and coal coked at the mines, is estimated at 8.200,000 net tons.
Compared with the output in the preceding week, this shows an increase
of 376.000 tons, or 4.8%. Production during the week in 1930 corresponding
with that of Feb. 14 amounted to 10,224.000 tons.
Estimated United States Production of Bituminous Coal (Net Tons).
1929-1930
-1930-1931Coal Year
Coal Year
Week.
to
Date.a
Date.
to
Week.
Week Ended11,628,000 444,080,000
8,037,000 375,066.000
Jan. 31
1,938,000
1,646,000
1,459,000
1,340,000
Daily average
10.935,000 455,015,000
Feb. 7b
7,833,000 382.899,000
1,823,000
1,655.000
1,455,000
1,306,000
Daily average
10,224,000 485,239,000
8,209,000 391,108,000
Feb. 14c
1,704,000
1.663,000
1,453,000
1.368,000
Daily average
a Minus one day's production first week in April to equalize number of days in the
two years. b Revised since last report. c Subject to revision.
The total production of soft coal during the present coal year to Feb. 14
(approximately 269 working eays) amounts to 391.108,000 net tons.
Figures for corresponding periods in other recent years are given below:
415,659,000 net tons
465,239,000 net tens 1926-28
1929-30
512,810,000 net tons
1928-29
_ -448,272,000 net tons 1926-27
375,872,000 net tons
1921-22
As already Indicated by the revised figures above, the total production
Of soft coal for the country as a whole during the week ended Feb. 7 is
estimated at 7,833,000 net tons. Compared with the output in the preceding week, this shows a decrease of 204.000 tons or 2.6%. The following
table apportions the tonnage by States and gives comparable figures for
other recent years:
Estimated Weekly Production of Coal Si' States (Net Tons).
Week Ended
StateFeb. 7 '31. Jan.31'31. Feb.8 '30. Feb. 9 '29.
389,000
372,000
277,000
Alabama
262,000
54,000
62,000
23,000
Arkansas
16,000
282,000
261,000
126,000
Colorado
126,000
967,000 1,414,000 1,755.000
Illinois
943,000
492.000
427,000
307,000
Indiana
270,000
101,000
129.000
67.000
Iowa
71,000
71,000
91,000
Kansas
52,000
47,000
986,000 1,003,000
593,000
Kentucky-Eastern
569,000
410,000
301,000
175,000
Western
172,000
65,000
58,000
48.000
Maryland
48,000
18,000
16,000
Michigan
15,000
16,000
105,000
94.000
54,000
Missouri
51,000
72,00
90,000
45,000
Montana
42,000
60,000
41,000
35,000
New Mexico
30,000
63,000
53,000
38,000
North Dakota
36,000
474.000
484.000
415,000
Ohio
420,000
112,000
107,000
24,000
Oklahoma
28,000
Pennsylvania (bit.)
2,199,000 2,231,000 2,580,000 3,007,000
129,000
129,000
97,000
Tennessee
94,000
13,000
25,000
11,000
Texas
10,000
145,000
147,000
91.000
Utah
69.000
276,000
280,000
Virginia
216,000
193,000
71,000
50.000
Washington
36.000
39.000
West Virginia-Southemb 1,428,000 1,462,000 1.982,000 2,149,000
720,000
Northernc
693,000
546,000
571,000
144,000
161,000
Wyoming
84.000
80,000
2,000
5,000
2,000
Other Statesd
3,000
Estimated Weekly Production of Beehive Coke (Net
Week Ended
Feb. 14
Feb. 7
Feb. 15
1931.c
1931.b
1930.
Region37,600
38,000
58,800
Pa., Ohio & W.Va
2,700
3,100
5,200
Tennessee and Virginia
1,200
1,200
2,800
Colo., Utah and Wash. -
Total bituminous coal__ 7,833,000 8,037,00 10,935,000 12,292,000 10,956,000
Pennsylvania anthracite._ 1,454,000 1,421,000 1,715,000 1,762,000 1.902,000
Total all coal
9,287,000 9.458,000 12,650,000 14,054,000 12,858,000
a Average weekly rate for the entire month. b Includes operations on the N.
& W.; C. & O.; Virginian, and K. & M. c Rest of State, including Panhandle.
.1 Figures are not strictly comparable in the several years.
PENNSYLVANIA ANTHRACITE.
The production of anthracite in the State of Pennsylvania during the
week ended Feb. 14 is estimated at 1.595,000 net tons. Compared with the
output in the preceding week this shows an increase of 141.000 tons, or
9.7%. Production during the week in 1930 corresponding with that of
Feb. 14 amounted to 1,707.000 tons.
Estimated Production of Pennsylvania Anthracite (Net Tons).
1931
1930.a
Week EndedWeek.
Daily Aver.
Week.
Daily Aver.
1,421,000
236,800
1,828,000
304,700
January 31
1,454,000
242,300
1,715,000
February 7
285.800
1,595.000
265,800
1,707,000
February 14
284,600
a Figures for 1930 revised slightly to insure comparability with 1931.
BEEHIVE COKE.
The total production of beehive coke during the week ended Feb. 14 is
estimated at 41,900 net tons, the same figure as for the preceding week.
1930
to
Date.*
397,500
41,400
20,200
41,900
66,800
246,400
459,100
41,900
United States total_ __ _
6,983
6,983
11,133
6,318
11,772
Daily average
a minus one day's production first week in January to equalize number of days in
the two years. b Subject to revision. c Revised since last report.
Coke Statistics for January.
The total production of by-product coke for the month of January
amounted to 3.092,153 net tons in comparison with 3,077,290 tons In
December. The daily rate of output was 99,747 tons in January as against
99.267 tons in December. Beehive coke production during the month of
January is estimated at 163.000 net tons in comparison with 171,100 tons
In December.
Coke Production Declined in 1930.
According to preliminary reports received by the United
States Bureau of Mines, Department of Commerce, the
production of coke in 1930 was 48,310,308 net tons, a decrease
of 19.3% when compared with 1929. The chief cause of the
decrease in coke production was the reduced activity of
blast furnaces, the output of pig iron for 1930 decreasing
25.7% below the level of 1929. The production of beehive
coke was 2,795,800 net tons in 1930, the lowest since 1880,
and a decrease of 56.8% as compared with 1929. The
Bureau's statement shows:
PRODUCTION OF BY-PRODUCT AND BEEHIVE COKE IN THE
UNITED STATES.
Per Cent of Total Output.
Net Tons Produced.
Year.
Feb. 1923.
Ayerage.a
409,000
25,000
231,000
1,993,000
613,000
136,000
95,000
556,000
226,000
51,000
26,000
79,000
80,000
58,000
37,000
694,000
62,000
3,087,000
127,000
23,000
96,000
212,000
77,000
1,127,000
673,000
156,000
7,000
Tons).
1931
to
Date.
218,100
20,000
8,300
1913
1914
1915
1916
1917
1918
1919
1920
1921
1922
1923
1924
1925
1926
1927
1928
1929
a 1930
By-Product
Beehive.
Total.
By-Product.
Beehive.
Total.
27.5
32.5
33.8
35.0
40.4
46.0
56.9
60.0
78.1
76.9
66.0
76.8
77.9
78.0
85.9
91.5
89.2
94.2
72.5
67.5
68.2
65.0
59.6
54.0
43.1
40.0
21.9
23.1
34.0
23.2
22.1
22.0
14.1
8.5
10.8
5.8
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
2.714.700 33,584,830 16,299,530
11,219.943 23,335,971 34,555.914
14,072,895 27,508.255 41,581,150
19,069,361 35,464,224 54,533,585
22,439,280 33,167,548 55.606,828
25.997.580 30.480,792 56.478,372
25,137,621 19.042.936 44,180,557
30,833.951 20,511,092 51.345.043
19.749.580 5,538.042 25.287.622
28,550.545 8,573.467 37,124.012
37,597,664 19.379,870 56,977,534
33,983,568 10,286.037 44,269,605
39,912,159 11,354.784 51.266,943
44,376.586 12,488.951 56.865.537
43 884,726 7.207,417 51.092.143
48.313.025 4.492,803 52,805.828
53.411,826 6,472,019 59.883,845
45,514,508 2,795,800 48,310,308
a Preliminary figures.
Note.-The figures for by-product coke are based on monthly reports
received currently by the Bureau of Mines from each producer, and are
subject to very slight revision on the basis of final detailed reports for the
year as a whole. The figures for beehive coke are estimates based on shipments reported by 15 of the princip railroads serving the beehive ovens.
The trend of monthly coke production, which closely
parallels pig iron output, follows:
ESTIMATED MONTHLY IttODU TION OF BY-PRODUCT AND BEEHIVE
COKE AND OF PIG IRON IN 1930.
Coke (Net Tons).
Total.
a Pig iron
(Gross Tons).
601,000
375,000
539,300
4,258,000
4,4C1.000
4,990,300
3,019.000
3,153.000
3,524,000
4,195,700
4,004,200
4,393.700
4,246,400
4,265.500
3,953,900
3,770,400
3,637,400
3,401,400
3,431,500
3,137,100
3,077,300
320,200
281,000
290,700
301,700
272,000
261,600
214,600
169.500
168,100
177,800
167,500
171,100
4,515,900
4,285,200
4,684,400
4.548,100
4,537,501)
4,215,500
3,985.000
3,806,900
3,569,600
3,609,300
3,304,600
3,248,400
2,827,464
2,838,920
3.246,171
3.181.883
3,232,760
2,934.129
2,639,537
2,523.921
2.278,770
2.164,769
1.867,107
1,665,690
Total 1930
45,514,600
Average
3.792.900
u Figures from the Iron Age.
2,795,800
233,000
48,310,300
4,025,900
31.399,105
2,816.600
Month.
By-Product.
Monthly average 1927-- 3,657,000
Monthly average 1928._ 4,026.000
Monthly average 1929._ 4,451,000
January 1930
February
March
April
May
June
July
August
September
October
November
December
Beehive.
Current Events and Discussions
The Week with the Federal Reserve Banks.
The daily average volume of Federal Reserve Bank credit
outstanding during the week ended Feb. 25, as reported by
the twelve Federal Reserve Banks, was $913,000,000, a
decrease of $27,000,000 compared with the preceding week
and of $242,000,000 compared with the corresponding week
in 1930. After noting these facts, the Federal Reserve
Board proceeds as follows:
Reserve bank credit outstanding amounted to 3904,On Feb. 25 total
week ago, increases of $6,000,000,000 as compared with $905,000,000 a
currency and $2,000,000 in monetary gold stock and a
000 in Treasury
balances being nearly offset
decrease of $2,000,000 in member bank reserve
$9,000,000 in the amount of money in circulation.
by an increase of
declined $6,000,000 at the
bills
During the week holdings of discounted
each at Cleveland and San
Federal Reserve Bank of Atlanta, $2,000,000
Reserve Banks, The System's
Francisco and $10,000,000 at all Federal
increased $12,000,000 and of
holdings of bills bought in open market
Treasury certificates and bills $17,000,000, while holdings of H. S. bonds
declined $3,000.000 and of Treasury notes 313.000.000.
Beginning with the statement of May 28 1930, the text
accompanying the weekly condition statement of the Federal
Reserve banks was changed to show the amount of Reserve
bank credit outstanding and certain other items not previously included in the condition statement,such as monetary
gold stock and money in circulation. The Federal Reserve
Board's explanation of the changes, together with the definition of the different items, was published in the May 31
1930 issue of the "Chronicle," on page 3797.
The statement in full for the week ended Feb. 25, in comparison with the preceding week and with the corresponding
date last year, will be found on subsequent pages-namely,
pages 1571 and 1572.
1.506
FINANCIAL CHRONICLE
[VOL. 132
Changes in the amount of Reserve bank credit outstanding and in related items during the week and the year ended Complete Returns of the Member Banks of the Federal
Reserve System for the Preceding Week.
Feb. 25 1931 were as follows:
As explained above, the statements for the New York and
Increase (+) or Decrease (—)
Since
Chicago member banks are now given out on Thursday,
Feb. 25 1931. Feb. 18 1931 Feb. 26 1930.
8
$
simultaneously with the figures for the Reserve banks themBills discounted
190,000.000 —10,000,000 —152,000,000
Bills bought
106.000.000 +12,000,000 —193,000,000 selves, and covering the same week, instead of being held
United States securities
—1,000,000 +116,000,000 until the following Monday, before which time the statistics
599,000,000
Other Reserve bank credit
8,000,000
—3,000.000
—23,000,000
covering the entire body of reporting member banks in 101
TOTAL RES'VE BANK CREDIT
—1,000,000 —252,000,000 cities
904,000,000
cannot be got ready.
Monetary gold stock
+2,000.000 +316,000.000
4,663,000,000
In the following will be found the comments of the Federal
Treasury currency adjusted
+6,000,000
I 784,000,000
+16,000,000
Reserve Board respecting the returns of the entire body of
Money in circulation
4,569,000,000
+9,000,000
+62,000.000
Member bank reserve balances
2,378,000,000 —2,000.000
+32,000,000 reporting member banks of the Federal Reserve System for
Unexpended capital funds, non-memthe week ended with the close of business on Feb. 18:
ber deposits, arc
403.000,000
—1,000,000
—16,000,000
Returns of Member Banks for New York and Chicago
Federal Reserve Districts—Brokers' Loans.
Beginning with the returns for June 29 1927, the Federal
Reserve Board also commenced to give out the figures of the
member banks in the New York Federal Reserve District,
as well as those in the Chicago Reserve District, on Thursdays, simultaneously with the figures for the Reserve banks
themselves, and for the same week, instead of waiting until
the following Monday, before which time the statistics
covering the entire body of reporting member banks in the
different cities included cannot be got ready.
Below is the statement for the New York member banks
and that for the Chicago member banks for the current
week as thus issued in advance of the full statement of the
member banks, which latter will not be available until the
coming Monday. The New York statement, of course, also
includes the brokers' loans of reporting member banks. The
present week's totals are exclusive of figures for the Bank
of United States in this city, which closed its doors on Dec.
11 1930. The last report of this bank showed loans and
investments of about $190,000,000. The grand aggregate
of brokers' loans the present week records an increase of
$26,000,000, the total on Feb. 25 1931 standing at $1,798,000,000. The present week's increase of $26,000,000 follows
an increase of $23,000,000 last week and of $33,000,000 the
previous week. Loans "for own account" increased during
the week from $1,229,000,000 to $1,267,000,000, while loans
"for account of out-of-town banks" decreased from $267,000,000 to $260,000,000 and loans "for account of others"
from $276,000,000 to $271,000,000.
CONDITIONS OF WEEKLY REPORTING MEMBER BANKS IN CENTRAL
RESERVE CITIES.
New York.
Feb. 2.5 1031. Feb. 18 1931. Feb. 26
1930.
7,980,000,000 7,953.000.000 7,412100,000
Loans and investments—total,,
Loans—total
5,469.000,000 5,456,000,000
5.499,000,000
3,137,000,000 3,114,000,000 2,890,000.000
2,332,000,000 2,342,000,000
2.609,000,000
On securities
All other
Investments—total
2511,000,000 2,497,000,000
1,914,000,000
I 351,000,000 1,365,000,000 1,108,000mq
1,160,000,000 1,132,000,000
805.000,000
U. 8. Government securities
Other securities
Reserve with Federal Reserve Bank_
Cash in vault
Net demand deposits
Time deposits
Government deposits
_ 816,000,000
46,000,000
804,000,000
43,000.000
782,000,000
49,000,000
5,838,000,000 5,785,000,000 5.226,000.000
1 275,000,000 1,274,000,000
1,230,000,000
14,000,000
14,000,000
1.000,000
106,000,000 101,000.000
74,000.000
1,276,000,000 1,308,000,000 904,000,000
.-
Due from banks
Due to banks
Borrowings from Federal Reserve Bank_
1,000,000
Loans on Recur. to brokers & dealers:
For own account
1,267,000,000 1,229,000,000 953.000.000
For account of out-of-town banks__
260.000,000 267.000,000 980,000 000
For account of others
271,000,000 276,000,000 1,556,000:000
Total
1 798,000,000 1,772,000,000 3,489,000,000
On demand
On time
1,390.000,000 1,365,000,000 3,116,000,000
408,000.000 407,000,000 373,000,000
Chicago.
Loans and investments—total
Loans—total
'• On securities
All other
Investments—total
15.5. Government securities
Other securities
Reserve with Federal Reserve Bank__ _
Cash In vault
Net demand deposits
Time deposits
Government deposits
Due from banks
Due to banks
Borrowing from Federal Reserve Bank
1,998,000,000 2,003,000,000 1,815,000.000
1 345.000,000 1,355,000,000 1,454,000,000
777,000,000 785,000,000 8
568,000,000 570,000,000 561,000.000
93,000,000
653,000,000 648,000,000 360,000,000
345,000,000
308,000,000
345,000,000
303,000,000
182,000,000
14,000,000
187,000,000
13,000,000
160,000,000
373.000,000
159,000,000
373,000,000
130,000,000
314,000,000
1,000,000
2,000,000
1,000,000
160,000.000
201,000,000
171.000,000
14,000,000
1,261,000,000 1,270,000,000 1,203,000,000
623,000,000 624,000,000 511,000,000
10,000,000
10,000,000
The Federal Reserve Board's condition statement of weekly reporting
member banks in leading cities on Feb. 18 shows a decrease of 3111,000,000
In loans, largely offset by an increase of $102.000,000 in investments, decreases of $102,000,000 in net demand deposits and 816,000,000 in borrowings from Federal Reserve banks, and an increase of $88,000,000 in time
deposits.
Loans on securities increased $67,000,000 at reporting banks in the
New York district and declined 347,000,000 in the Chicago district, all
reporting banks showing a net increase of 88,000,000. "All other" loans
declined $120,000,000 in the New York district, $9,000,000 in the Chicago
district and $117,000,000 at all reporting banks, and increased 811,000,000
In the Boston district and 38,000,000 in the San Francisco district.
Holdings of U. S. Government securities increased $80,000,000 In the
Chicago district. $17,000,000 in the New York district and 359,000,000 at
all reporting banks, and declined $10,080,000 in the Boston district and
30,000,000 in the Richmond district. Holdings of other securities increased
330,000,000 in the New York district and 343,000,000 at all reporting banks.
Borrowings of weekly reporting member banks from Federal Reserve
banks aggregated $52,000,000 on Feb. 18, the principal change for the
week being a decrease of 313,000,000 at the Federal Reserve Bank of
New York.
A summary of the principal assets and liabilities of weekly reporting
member banks, together with changes during the week and the year ended
Feb. 181931. follows:
Increase (+) or Decrease (—)
Sines
Feb. 18 1931. Feb. 11 1931. Feb. 19 1930.
Loans and Investments—total._ _ _ 22,650,000,000
15,494,000,000
Loans—total
On securities
All other
Investments—total
—9,000,003
+560.000,000
—111,000,000 —1,025,000,000
7,325,000,000
8.169,000,000
+6,000,000
—117,000,000
7,156,000,000
+102,000,000 +1,585,000,000
—344,000,000
—681,000,000
3,414,000,000
3,742,000,000
+59,000,000
+43,000,000
+606,000,000
+979.000,000
Reserve with Federal Res've banks 1,706,000,000
Cash in vault
213,000,000
+10,000.000
—21,000,000
+101,000,000
—19.000,000
13,570,000,000
7,243,000,000
80,000,000
—102,000,000
+68,000,000
+604,000,000
+302,000,000
+76,000.000
U. S. Government securities
Other securities
Net demand deposits
Time deposits
Government deposits
1,782,000,000
3,807,000,000
Due from banks_
Due to banks
Borrowings from Fed, Res. banks_
52,000,000
+4,000,000 +678,000,000
—19,000,000 +1.073,000.000
—18,000.000
—134,000,000
Summary of Report of Gold Delegation of League of Nations
on Distribution of Gold.
The summary of the Report of the Gold Delegation of
the Financial Committee of the League of Nations on the
Distribution of Gold, has just come to us. Reference
thereto appeared in our issues of January 24, page 579,
and January 31, page 758. Because of the general interest in the report we are giving the League's summary
herewith:
DISTRIBUTION OF GOLD.
Summary of the Report of the Gold
Delegation of the
Financial Committee.
After having recalled that the interim report published in ,September
1929 had endeavoured to deal with the problem of the prodnction of gold
and its influence on the general trend of prices, the Gold Delegation states
that in the present report they propose to deal with the problem of its
distribution. To that effect they have divided the subject under the
following headings:
Factors which have determined the distribution of gold in recent years;
The functioning of the Gold Standard;
Recent changes in the Gold Standard System;
Monetary Reforms and Banking Principles.
Having observed that the distribution of gold is one of the factors
which may influence the purchasing power of money, the Delegation remids the readers of its report that in normal times this distribution will
depend on the relative rate of economic development in different countries, on the monetary systems which are in force and upon monetary
Policy. Without endeavouring to describe in detail the changes which
have taken place in the distribution of gold in recent years or the
causes which have determined those changes, the authors of the report
observe, that during the last fifteen years, as a result of the war and its
immediate consequences, the distribution of the metal has been largely
determined by non-monetary causes of a political and economic nature—
and, more especially in recent times, by lack of confidence. At the same
time they express the belief that those non-monetary causes which
arose directly from the war and the subsequent period of currency
inflation and stabilization, should work themselves out. This process,
which may prove to be a slow one, can be accelerated by restoration
of confidence. So long as confidence is lacking the influence of monetary
Policy and the normal operation of the Gold Standard must be restricted.
That influence may be rendered more effective if certain reforms which
should facilitate the task of currency authorities and help them to economize the use of gold are adopted.
The Delegation then proceeds to explain the functioning of the Gold
Standard and recent changes which have taken place. The major changes
FEB. 28 1931.)
FINANCIAL CHRONICLE
mentioned are: the withdrawal of gold from actual circulation, the generalization of the so-called gold exchange-standard and of the more general
adoption of a rigid percentage reserve system. In addition there are
other changes in the functioning of the gold standard resulting from
modifications in bank practice or in general financial conditions such
as tildevelopment of open market operations, the growth of New York
as a major lending centre and the narrowing of the gold points.
Certain of these changes have tended in part to economize gold, in
part to enhance the demand for it. The gold exchange standard has
somewhat complicated the mechanism of the international gold standard
system. As a whole the task of Central Banks has become more delicate
and more difficult.
On the other hand, forces which lead to international disequilibrium
have somewhat changed. Owing to the growth in international indebtedness and more especially the growth in the short-term capital fund,
the influence of capital and interest movements has increased relatively
to that of the exchange of commodities. In consequence the whole organization has become more sensitive and the strains on the gold reserves
more frequent.
The authors of the report are nevertheless of the opinion that an
optimum distribution of the gold available for monetary use may ultimately be achieved if the world comes gradually back to normal conditions and public confidence improves, and proceed to consider the
monetary reforms and banking principles which appear to further this
aim.
In this connection the Delegation points out that countries by adopting the gold standard become thereby automatically members of an international system under which they assume a responsibility for conducting
an economic and financial policy which will maintain confidence and
facilitate the general working of that standard. The automatic application of the mechanism is, however, not adequate, post-war conditions
having increased the occasions when the exercise of conscious direction
is necessary. In this connection the report recalls that gold reserves
play a double part nowadays: they are in part employed to maintain
confidence in the credit-structure of which they form the basis and
secondly they are required to meet possible deficits in the international
balance of payments. Such deficits may occasionally be of a temporary character, in which case they may be met by the provision of
short term credits. On the other hand, permanent causes of disequilibrium
may be operating and in that case it is of the utmost importance that
gold should be allowed to flow from one centre to another and exercise
its full influence until equilibrium has beet: re-established or normal
conditions have been restored by other measures.
With these general principles in mind the Gold Delegation suggests
a number of measures for the purpose of achieving a 'beneficial distribution of gold, the most important of which are:
The granting to monetary authorities of the .powers necessary to
enable them to pursue such credit policy as the circumstances demand;
The reduction of the existing minima of gold legally required in
the reserves of the Central Banks, granted an international understanding on this subject has previously been reached;
The maintenance of the general practice today of not putting gold
coin into circulation;
Close collaboration between Central Banks;
The improvementof the mechanism for the issue of foreign loans
and for promoting international transactions in existing securities.
In addition, the Delegation discussed a number of other points, amongst
which may be mentioned:
The principles to be observed by Central Banks in converting foreign
assets into gold;
The concentration of foreign assets held by Central Banks with
other Central Banks;
The maintenance of a steady flow of gold, capital and credit;
Theremoval of artificial restrictions on foreign lending and the
limitation of loans to productive purposes; the concentration with
Central Banks of the liquid funds both of the State and semi-public
financial Institutions;
The system of inter-Central Bank credits.
The Gold Delegation closes its report by expressing the belief that
if the principles laid down therein are generally accepted and applied,
a more economical distribution of gold in future years may be secured,
granted the general political and economic conditions are not such as
to create disturbances which no monetary policy can hope to counteract.
Such distribution will go far to prevent the magnitude of the supplies
of new gold from exercising an influence on the long-term trend of the
purchasing power of gold in the future.
23rd January 1931.
International Bankers, Meeting at Paris, Deny Gold
Causes World Depression—Lay Maldistribution to
Ills Resulting from War—Gold Problem Minimized
—Financiers Concur in Growing Belief It Will
Solve Itself With Long-Term Credits.
From Paris accounts to the New York "Times" it is
learned that prominent bankers from all the important
financial markets of the world met on Feb. 19 at the Paris
headquarters of the International Chamber of Commerce
and considered what could be done in the realm of finance
to remedy the existing economic disorders and hasten the
return of normal conditions. The cablegram to the "Times"
continued:
The exchange of views, which lasted throughout the day, resulted finally
in unanimous agreement concerning certain definite recommendations;
but of even wider significance was the discussion of the problem of gold
and its distribution and the general conclusions to which the discussion led.
The gold question arose when the matter of the underlying causes of
the pronounced decline in the prices was taken up, and most of the speakers
took the attitude that the present distribution of the precious metal
throughout the world should be regarded, not as a cause of the present
difficulties but rather as the effect of economic conditions for which the
World War had been primarily responsible.
The Majority Opinion.
If the proper economic equilibrium between nations can be established,
it was the convictio nof the majority of the bankers that there would
automatically follow a tendency toward righting the present distribution
of gold, about which there has been such animated discussion.
In this connection special emphasis was laid on the importance of free
International movements of capital and the necessity for encouraging such
1507
movements, always provided the capital invested is to be used for con- ,
structive purposes.
The consensus of views that the present distribution of gold reserves—so
vigorously attacked by certain British bankers as being one of the fundamental causes of the world depression—is really the outcome of and not
responsible for the world's economic ills, is another significant expression
of responsible opinion that is expected to go far toward relegating the
gold problem to a secondary role in the current crisis. Several developments have already contributed to this shelving process, notably the report
of the gold committee of the League of Nations and the subsequent delivery
of the whole matter into the hands of a purely technical department of the
Bank for International Settlements.
Thus the movement for an "international gold conference and eventual
arbitrary redistribution of the yellow metal" is now being regarded as
just another of those suggestions which failed to gain headway. In checking
the move the bankers of the United States and France, whose qountries
between them control 56% of the world's gold reserves, played no small
part, although due credit is being given to the beads of large British banks
who had the courage to come out in their respective annual reports and
take issue with distinguished British economists and some of their own
colleagues who had been asserting that the maldistribution of gold was at
the bottom of the world's economic troubles.
For Free Capital Flow.
To-day's debate was a reflection, therefore, of the new theory that the
gold problem will solve itself as soon as long-term credits start flowing try
those nations badly in need of such help.
Amplifying this newer aspect of the matter, the bankers recommended•the
elimination of the fiscal charges that now hamper the flow of capital.
from one country to another and the unification of the Stock Exchangeregulations governing international transactions, with a view to creating
a wider market for international securities as 'an effective means of settlement for international obligations. In other words, it was the feeling that'
if securities could be substituted for actual physical gold shipments much'
of the disequilibrium and resultant exchange disturbances moth" be
eliminated.
In a resolution covering this entire subject the bankers agreed that the '
movement of capital for purely productive purposes, especially the develop-'
ment of new countries and those inadequately developed, should particularly
be studied.
Another important recommendation with direct bearing upon the European agricultural problem favored the organization of international financial institutions of a private character, with the idea of widening the market for medium and long-term credits. This was a sort of financial blessing for the meeting of the European agricultural committee next Monday
in Paris. The committee is an outgrowth of Aristide Briand's European'
Federation sasions and will study the question of establishing a credit
bank to aid Eastern European farmers.
The general plan appears to be that the Western industrial States,
especially France, Belgium, Holland, and Sweden, will supply the capital
in return for fairly definite promises from the Eastern agrarian States to
purchase manufactured wares from the lending countries.
The United States, Canada, and Argentina, three great wheat-producing
nations which together sell vast quantities of grain to Europe, are anxious,
but outside observers of the approaching meeting. It is understood that a
kind of unofficial liaison has been established between them for any contingency that may arise.
The American delegation at to-day's meeting of bankers included C. F.
Weed, Vice-President of the First National Bank of Boston; Nelson Dean
Jay, a partner in J. P. Morgan & Co., and H. 0. MacLean, Arnerican Commissioner to the International Chamber of Commerce. All the recommendations made will come before the chamber's sixth world congress in Washington next May.
Senate Adopts Resolution Requesting President to
Call International Conference on Silver.
On Feb. 20 the United States Senate adopted a resolution requesting President Hoover to call an international
conference "to the end that agreements or understandings
may be obtained with respect to the uses and status of
silver as money." The resolution also suggests negotiations with other countries to prevent the "abnormal fluctuations and depressions in the price of silver." The resolution was drafted, it is stated, by the Foreign Relations Committee, headed by Senator Pittman (D., Nev.), after nearly
a year's study of the cause of the drop in the price of silver
and decline in trade between this country and China. The
resolution as agreed to by the Senate follows:
Resolved, That the Senate, having had under investigation and consideration, through its Committee on Foreign Relations and a subcommittee
thereof, our commercial relations with China, the causes of the great and
sudden depression in such commerce and remedies for such depression,
and such Committee having reported to the Senate, the Senate submits to
the President the reports, hearings and other data in respect thereto, with
the respectful suggestion that he shall, if he deem it compatible with the
best interests of the Government, enter into discussion or negotiation with
governments looking to the suspension of the policy and practice of government, of melting or debasing silver coins and sales by governments of silver,
and that he take such other and further action in the premises as be may
deem necessary to eliminate the abnormal fluctuations and depressions in
the price of silver.
The Senate further respectfully suggests that the President, If he deem
it compatible with the best interests of the Government, call or obtain an
international conference, or international conferences, to the end that
agreements or understandings may be obtained with respect to the uses
and status of silver as money.
The report of the Senate Committee recommending international negotiations to effect the stabilization of the price
of silver was referred to in these columns Feb. 21, page
1353. In its issue of Feb. 21, the "United states Daily"
said:
Following the adoption of the resolution, Senator Pittman sent a
tele- ,
grain to the Governors of the various Western States advising
them of the
1508
FINANCIAL CHRONICLE
action and directing them to address further communications on the
subject to the President. The message was transmitted to the Governors
of Colorado, Nevada, Utah, Wyoming, Montana, Washington, Arizona,
Oregon, California, Idaho, New Mexico, and Oklahoma.
The telegram, made public by Senator Pittman, follows in full text:
I was successful to-day in obtaining passage through Senate of my silver
resolution requesting President to attempt to bring about suspension of
policy of Government melting up silver coins and throwing them upon the
market of the world and also suggesting to the President that he call or
obtain international conference to reach an agreement or an understanding
regarding the use and status of silver.
Matter .s ,,ow in hands of President of United States and I hope and
believe he will take immediate action. He undoubtedly will be supported
in this action by Canada, Mexico, Australia, New Zealand, China, and
other silver-using countries. All memorials and resolutions endorsing said
resolution No. 442 should now be addressed to the President, and those
coming into my possession or Foreign Relations Committee will be referred
to President. Am optimistic regarding success of this move, and upon
its consummation expect silver to return to normal without delay. Practically whole world desires stabilization of silver and international conferences should bring this about in due time.
Executive Committee of International Chamber of
Commerce Urges Silver Conference—Action Proposed to Meet Economic Crisis in China.
The following Paris cablegram, Feb. 20, is from the New
York "Times":
At a meeting of the Executive Committee of the International Chamber
of Commerce it was urged that all governments which hold stocks of
silver or which produce silver or can influence it by their monetary policies
enter into immediate conversations, together with the Government of China,
for the purpose of stabilizing prices. The deplorable effect of the slump
In silver's price on the economic situation in China and the consequent
reduction in purchasing power were given as the chief reasons why an
international silver conference should be called.
Silver, it was suggested, should be maintained on as stable a basis as
possible, and, it was said, was not only desirable but urgently necessary.
British bankers attended the meeting and strongly urged the action which
was taken. The matter now goes to the various national committees for
the direct action of their governments.
[Val.. 132.
He declared that China's entire indebtedness, of less than $850,000,000,
was $1.85 a person, a sum that would not be a great burden once the
reforms now being carried on by the Government were completed.
"China will not go Red," he asserted, "and does not believe in world
revolution or any other fantastic scheme of upsetting the established
economic order. She will mind her own business, as she has always done,
and she naturally expects the same from others."
Mr. Li is President of the Wah Chang Trading Corp. and prominent in
Chinese circles here.
Grover Clark, a consultant on Far Eastern affairs, who from 1921. to
1929 was editor of the Peking "Leader," urged that the principal American
automobile and oil companies join in providing the initial funds for the
establishment of a reconstruction foundation for road building and similar
work in China. They would get their money back in profits, he said, and
such a foundation would provide work for those who now are bandits
because they cannot find jobs. He predicted that such an organization
would lay the foundations for peace and prosperity.
Opposes Foreign Loans to China.
Foreign loans to the Chinese Gcvernment, he said, are not practical,
because "they would create grave new political complications; would do
more harm than good by making control of the government a rich prize and
hence increase rather than decrease civil war, and, by making the government independent of the Chinese bankers and merchants on whom it
now must rely for funds, would remove one of the most important parts
of the foundation of peace; and are not wanted by China under any such
conditions as the foreigners would demand."
Rodney Gilbert, a writer on China, who was in that country from 1912
to 1929, said that the biggest thing that could be done for China "would
be the evolution of a firm but fair international policy surrendering no
safeguards to demagogic agitation, but impressing upon all factions of
Chinese officialdom the urgency of the world's need of a China with open
communications adequately policed. The restoration of such internal order
as will permit the Chinese people to get back to work is the fundamental
preliminary to any reconstruction scheme."
He said that money or credits, poured into "a China that is still a loose
voluntary fed ration of personal rulers," would put a premium on civil war
and would amount to intervention which would not be endorsed by Chinese
or Occidental opinion.
Silver Decline May Cut Chinese Cotton Imports.
Curtailment of Chinese consumption of American cotton
may be the result of the unprecedented low value of silver
that country, according to a cable received by
China Would Enter Parley on Silver—Finance Minister exchange in
the Department of Agriculture from Commissioner Nyhus
Soong Ready to Aid World Move to Stabilize
at Shanghai. This is noted in a Washington account, Feb.
Value.
13, to the New York "Journal of 'Commerce," which also
A cablegram to the New York "Times" from Shanghai,
said:
Feb. 23, said:
prices of
The
reported
The silver situation in China and reports from world centers regarding
remedial measures continue to produce government announcements, but
the impression abroad appears to take too much for granted.
However, Finance Minister Soong, interviewed at Nanking to-day, expressed interest in she decision of the International Chamber of Commerce
recommending that its members stress the need for international action
regarding silver. He said that if a world conference were called Nanking
was ready to partic:;,ate and to co-operate in any measures for the stabilization of the silver alue.
Hu Han-min, is ently reported in Washington messages to have authorized Judge Paul M. W. Linebarger to negotiate a silver loan, to day denied
the statements. He said this was solely a matter for the Government and
himself; that he had no authority to give any such instructions, although
he admitted there was need for foreign capital and he proposed that there
be an American loan, reasonable in its terms.
Dr. H. IT. Bung, Minister of Industry, is reported to have told Paul M.
W. Linebarger, Jr., in an interview that the Pittman proposals were a
step in the right direction, but that China needed two loans—the first a
silver loan for circulation within the borders of China and for buying raw
materials, paying labor and financing the army aisbandment plan in order
to increase national production; the second a gold loan for making essential
purchases abroad. The gain loan would be deposited in American banks and
would be drawn upon to finance the buying of machinery and supplies.
Following conferences at Nanking, at which a definite Sino-Ru.ssian policy
was devised, Moh Teh.hui, Chinese delegate, is leaving the capital Tuesday
for Moscow to resume negotiations there after a conference with Marshal
Chang Bauch-Hang at Mukden. Mr. Mob declared to-day that the Moscow
conference would concentrate upon a satisfactory enforcement of the old
relcing-Mukden agreements tegarding the Chinese Eastern Railway.
Asks World Parley to Stabilize Silver—K. C. Li Tells
Foreign Policy Body That Plan Would Aid China
and Relieve Slump—Foreign Loans to China Not
Practical.
One of the first ways out of the present world-wide economic depression is the reconstruction of China, and one of
her greatest problems, which affects the rest of the world
as well, is the decline in silver values, according to K. C. Li,
Chinese merchant in New York, who spoke, on Feb. 14, at a
luncheon of the Foreign Policy Association at the Astor.
The New York "Times," from which we quote, added:
The drop in silver is impeding international commerce in China, he said,
and with silver down all over the world the gold standard countries also
suffer. The low price of silver, he added, is the principal reason why the
American surplus of production cannot be distributed in Asia, Europe,
and South America.
He lauded our Senate for having brought up the question of silver
rehabilitation, but said that the United States and China alone could not
solve the problem.
Urges World Conference on Silver.
The League of Nations and the statesmen of the world should lose no
time in arriving at a solution of the question, he said, asking why a worldwide silver rehabilitation conference should not be called.
Commissioner
that no corresponding advances in
high count yarns have developed to offset higher silver prices of American
cotton, while prices of Chinese cotton had also advanced during the month
ended Feb. 11, partly due to the anticipation of the disappearance of
Chinese raw cotton supplies and the necessity of local prices approximating
the higher laid-down prices now prevailing on Indian cotton, which now
costs more than Chinese, reversing the situation of a month ago.
American cotton arrivals during the last quarter of 1930, according to
the cable, reached 133,000 bales, of which 50,000 bales were unsold on
Feb. 11. Japanese mills in China, however, sold out well forward. New
cotton business is very quiet in that country, and American supplies are now
large, but importers expect that Japanese mills will resume buying to maintain a monthly consumption rate of about 20,000 bales of American cotton
for this crop year. Chinese mills report a slow yarn business., and some
accumulation of stocks, but mills continue full operations in view of better
business prospects after the Chinese New Year, which is Feb. 17, it was
stated.
Chancellor Snowden of Great Britain Sees Gain in
Paris Gold Talks—France as Eager as Great
Britain to Check Flow of Metal.
The following London cablegram, Feb. 24, Is from the
New York "Times":
The Chancellor of the Exchequer, Philip Snowden, authorized a statement
to-night clearing up some of the details of the two months' negotiations
between British and French experts.
These conversations, according to his statement, have not been directed
to the establishment of a definite intergovernmental agreement on specific
points, but have "enabled contact to be established on various questions
which affect deeply the financial and economic interests of the two
countries."
It was agreed that this contact should be maintained and that a further
exchange of views should be conducted when circumstances require.
The exceptional gold movements between London and Paris played a
prominent part in the conversations, and Mr. Snowden's statement says it
has been confirmed that the French authorities in no way welcome these
abnormal gold movements and have "always been anxious so far as it
lies in their power to avoid any measures tending to bring them about.
"The French Treasury, while not considering that the methods of
managing public funds in France can have had the influence on gold movements which is sometimes attributed to them, has nevertheless readily
stated its intention of continuing to take account in this respect—as far
as is consistent with its own requirements—of the repercussion which the
operations of public accounts might have on the monetary market,"
according to the Chancellor's statement.
It was agreed that the two Treasuries should keep in touch with each
other on questions arising out of the report of the League of Nations gold
delezations and, moreover, that cardinal importance should be attached to
the resumption of foreign lending on a normal scale by credit or countries.
"The French authorities," Mr. Snowden adds, "on many occasions have
made known their desire to encourage foreign lending on the Paris market."
It was, however, recognized, the statement continues, that the present
credit difficulties were largely due to lack of confidence on the part of
investors and that it was essential that the borrowing countries should
themselves take all possible measures to restore that confidence.
It was agreed, therefore, that any steps that could be taken to promote
effective co-operation between the different markets concerned with is view
FEB. 28 1931.]
FINANCIAL CHRONICLE
to loan operations would contribute to the alleviation of the existing depression and that all possibilities in this direction would be examined on both
sides with a desire to bring about such co-operation.
"In this connection, the most important step has been taken by the
League of Nations to initiate detailed discussions with a view to facilitating
the placing of agricultural credits in Central and Eastern Europe," to-night's
statement says. "Concrete proposals are now being formulated by experts,
and it may be hoped that in this sphere practical results may be realized
at an early date."
Question of Payment of Debt to U. S. in Silver Brought Up
in House of Commons.
A London message Feb. 25 to the New York "Times"
said:
Chancellor of the Exchequer Snowden was asked in the House of Commons today if he had studied the scheme by which a certain percentage
of the British debt to the United States might be paid in silver at the
current market price of that metal and what he thought of the suggestion. Mr. Snowden replied he was not aware of any such scheme.
"Has the British Government or the United States taken any steps to
stabilize the position of silver?" he was then asked.
"That is an entirely different question," Mr. Snowden replied.
Because he would say no more, various members of the House jumped
to the conclusion that the stabilization of silver was being officially considered.
-
1509
Asks British Penalty on Alien Investments—Commons
Member Proposes Tax Cut for Home Capital, but
Chancellor Snowden Opposes It.
Under the above head the New York "Times" reported
the following from London Feb. 19:
Philip Snowden, Chancellor of the Exchequer, was asked to-day in the
House of Commons if he would consider the advisability of increasing
the tax rate on British incomes derived from investments abroad and
reduce the rate on incomes originating in Great Britain's Dominions and
Colonies, or even derived from enterprises established in foreign countries
but with more than half of their working expenses representing British
labor and materials. Sir Cooper Rawson, Conservative, who asked the
question, said such an increase in the Income tax would divert British
capital from foreign enterprises to home industries, thereby increasing
employment in Great Britain.
Mr. Snowden replied that he doubted practicality of the proposal.
In response to various questions concerning the French war debt to
England, Mr. Snowden said it had been S3.000.000,000 in July 1926, but
that 62% of that total had been remitted. Then the Chancellor was
asked if he would not again call the attention of France to this generosity
on the part of England in respect to war debts and see if France would
not reconsider the recent decision to pay British bondholders in francs,
worth only one-fifth of what they were when the British advanced the loan.
Mr. Snowden assured the House he had already done everything possible in that connection.
Great Britain to Retire 1,044 Naval Officers Apr. 1—
Sir Harry Armstrong Lauds Baldwin Debt Pact—Says
Extensive Cuts in Personnel Announced.
Accord With Us Was "Stroke of Diplomacy."
The following from London Feb. 24 is from the New York
The following London advices Feb. 24 are from the New "Times":
York "Times":
More than 1,000 naval officers are Involved in a decision of the British
Stanley Baldwin's settlement of the American debt when he was
Premier was characterized as a "great stroke of diplomacy and financial
instinct" by Sir Harry Armstrong today at the English-Speaking Union
luncheon. The luncheon was to honor Sir Harry on his retirement as
British Consul General in New York.
Sir Harry said he knew from the best financial opinion in New York
at that time that Mr. Baldwin got the very best terms obtainable, adding
that Britain owed the money and because of her paying it British credit,
honor and glory stood higher than ever before.
"If there is bound to be criticism between the United States and England," he continued, "it is a family quarrel of merely passing interest,
because our hearts are right. The Americans have great respect for
the British and for the way we have stood up to -chat we have had to
face since 1914. In a world full of unrest, more than ever it is necessary
for our two countries to unite in building up a living monument to peace."
Admiralty to make extensive cuts in the Navy personnel which was announced in the Official Gazette to-night. The decision of the Lords and
Commissioners of the Admiralty is embodied in a memorial to the King
In Council to which the King has given his consent.
One thousand and forty-four officers are to have the option of retiring
at the discretion of the Board of Admiralty on April 1, and the newspapers
suggest that some of these officers may feel that All Fools' Day has provided a grim jest.
The officers specified in the memorial who may be retired include 881
Lieutenant Commanders and 163 Lieutenants. They will retire with
their present rank, receiving no advancement.
Among those who may be affected are Lord Louis Mountbatten and
two winners of the Victoria Cross, Lieut. Commanders Gordon Charles
Steele and Wilfred Matteson.
United States Opposed to Limiting Number of Naval
Officers.
Circulation
Smallest
Since
Bank of England's Note
Under date of Feb. 24 a Washington dispatch to the New
1928—Issues Less Than at Any Time Since Currency
York "Times" said:
Amalgamation.
Contrasted with the announced cut in the British naval officer personnal,
In its issue of Feb. 23 the New York "Times" published Congress
only two weeks ago refused to limit the number of officers of
the following from London Feb. 20:
the line to the present status of 5,499, thus leaving the way open for further
This week's return for the Bank of England discloses the interesting fact promotions, as well as additions from the Naval Academy.
There is also pending in the House. under a special ruling. guaranteeing
that the bank's note circulation, at .E344,100.000. Is the lowest since the
amalgamation of the "currency note issue" with the old nolo issue of the action at this session, a bill to adjust promotions in the naval establishbank at the end of November 1928. The total outstanding circulation of ment so as to prevent early retirement of about 60 high ranking officers.
the Bank, immediately after that amalgamation, was £367,000.000; total Such reductions as have been made in the naval personnel include about
actual issues being L419,000,000. In the week preceding, and before the 4,800 Blue Jackets and 400 Marines, who were not appropriated for in
£286,750.000 currency notes then outstanding had been taken over, the the naval appropriations bill, now in conference. They were said to be
bank had reported a note circulation of I:132,802,375. At this date a not needed on account of three battleships being retired under the terms
year ago the bank's note circulation was £345,600,000; two years ago, of the London Naval Treaty.
r351.800,000.
The trade depression accounts to some extent for the reduced requireBest
ments of currency shown by the comparisons. Part of the decline since Chancellor Snowden Says Great Britain Cares
1929, however, has been duo to withdrawal of British notes from circulation
for Idle.
In Ireland.
Philip Snowden, Chancellor of the Exchequer, on Feb. 21
United States in an
Politics is Blamed for Sterling's Fall—Renewed Decline used the "harrowing" experiences of the
insurunemployment
Britain's
of
value
to
attempt
the
prove
Ascribed to Attitude of British Ministry and Other
ance system according to a London cablegram to the New
Leaders.
York "Times," continuing it said:
From London Feb. 20 a cablegram to the New York
Telling a Laborite audience in Yorkshire 10,000,000 were unemployed
said:
"Times"
in America, Mr. Snowden said England had borne the present economic
Notwithstanding the recent display of weakness in sterling, the longer
outlook for that market is still regarded in the city as moderately favorable.
Having secured control of the money market, the Bank of England is
unlikely to relinquish its hold until sterling shall have been definitely
lifted out of the danger zone. The necessity for maintaining money rates
hero has been demonstrated afresh by the break in sterling, which is directly
ascribed to political and financial developments in London during the past
week or two. These developments arrested a very promising flow of foreign
funds to London and seem temporarily to have turned the stream in the
opposite direction.
The heavy fall on the Stock Exchange this week was directly duo to the
Chancellor of the Exchequer's warning in regard to the gravity of the
national finances, coupled with a forecast that the budget deficit may
reach 50,000,000 sterling. Although the city has been all along fully alive
to the situation, the actual presentation of the case by the Chancellor and
his strong hint that taxation will have to go up have brought clearly before
the whole country the seriousness of the situation created by tho country's
decreased trade and by the extravagances of the government.
Financial London believes that confidences has been further upset by
Lloyd George's characteristic but irresponsible tirade and attack upon
city Interests. There seems to be no doubt that a considerable part of
this week's heavy fall in gilt-edged securities, particularly government
stocks, has been due to foreign liquidation arising from nervousness concerning the stability of British credit. The setback in sterling seems to be
evidence to that effect. Lloyd George is believed still to be regarded abroad
as one of our most authoritative statesmen. What the city considers his loss
of personal reputation and balance does not appear to be realized in foreign
markets as it is realized at home; consequently his actions and attacks
are considered to injure British credit in the eyes of foreigners.
Financial interests here admit that, awkward as the condition of British
national finance undoubtedly is, it is no worse than that of many other
countries, so that there ought to be no excessive anxiety abroad
depression better than other nations chiefly because of her "incomparable
social services."
"Stories reaching this country about the suffering in America to-day,"
said Mr. Snowden, "exhibit a state of things which can only be compared
with the position of affairs in this country in the days when there were
no social services and in which during periods of depression the unemployed
had no resources apart from the tender mercies of a heartless poor-law
relief. By comparison with Germany, America and other industrial countries, this nation is standing the etrain of the presen crisis better than
any other in the world.
"I say with full conviction that our social services in the last two years
have been the salvation of our country. We have heard a good deal about
abuses of the dole. If there are abuses, I am sure that the first class of
people who would protest against them would be the working people
themselves."
Mr. Snowden said lower wages would not help the country out of its
difficulties.
British Pottery Manufacturers Association Notifies
70,000 Workers ,That Employment Will Cease
March 25.
According to Associate Press dvices from London, Feb.
25, the British Pottery Manufacturers' Association to-night
notified 70,000 workers that their employment would cease
on March 25. The cablegram also said:
Observers believed there was no likelihood of a strike or a lockout as
they felt that the action was Intended to speed a decision on a wage agree-
1510
FINANCIAL CHRONICLE
tvor... 132.
ment controversy, in which the workers are asking more pay and the
employers are countering with a demand for reduction.
Dr. Birck of Copenhagen University Urges Germany
to End Young Plan Outlay—Says World Would
Gain by Reparations Cut—Scores United States
France's War Budget Gains by $3,000,000—Deputy
Interest Rate.
Defends It, Saying Nation Leads All Others on
The following from Copenhagen Feb. 20 is from the New
Road to Disarmament.
From the New York "Times" we take the following from
Paris, Feb. 20 (Associated Press):
York "Times":
Dr. Lauritz V. Birck, head of Copenhagen University and one of Denmark's leading economists, in an interview published in the Norwegian
Introducing a $258,000,000 Ministry of War budget in Parliament newspaper "Tidens Tegn" says Germany has to pay annually $420,000,000
to-night, Deputy Maurice Bouilloux-Lafont offered a report tending to in reparations in addition to $240,000,000 in instalments on short loans and
establish, he said, that France had gone further along the road to disarma- for interest on private loans abroad. Hitherto, he says, these payments
have been made through new loans, mostly from the United States, either
ment than any other nation.
Metropolitan troops are allocated $190,000,000 and overseas colonial short-term loans "which are called in at the wrong moment or long loans
troops $68,000,000 in the 1931 budget. The total is about $3,000,000 at an insane rate of interest."
"I have seen cases where perfectly good industries have to pay 177'
more than last year's.
0"
In spending the amount requested on the maintenance of her army, M. continued Dr. Birck. "Certainly the Americans are decent people who do
not
charge more than 8%, but with the low rate at which these loans are
Bouilloux-Lafont said, France is devoting 16% less to that purpose than
in 1913, and in comparison with other nations and in proportion to defense floated, and with the demand that part of the loans remain in New York
as security for the interest, the real rate of interest is increased considerably.
needs 14 to 48% less than in pre-war times.
His report said the French metropolitan army numbered 522,000, with
Prices Fell Since Loans.
30,000 gendarmes in addition. Great Britain, he said, has 510,000 regulars
"German business men carry a terrible burden of interest payments, to
and 277,000 militia; Italy, 303,000 regulars and 110,000 caribiniers ; the
the United States especially, as most loans have been taken up at quite a
United States, 157,000 regulars and 395,000 National Guards.
different level of prices in the same manner as we have here. For loans
Although the budget is $3,000,000 more than in 1930, said M. Bouillouxwhich brought us the value of 1,000 barrels of butter we now have to repay
Lafont, the United States Army expenditures showed an 86% increase and
3,000
barrels of butter.
the Japanese 48% over pre-war figures. His report said Germany was
"I think it would ease Europe considerably if Germany would make a
spending $120,000,000 to maintain the "treaty army" of 100,000 men,
jump into the abyss and declare that out of the Young plan payments she
plus 150,000 gendarmes and 30,00 frontier guards and customs officers.
will pay only $144,000,000, which is secured by the German national railroads' income, and no more. England, and particularly France, would
begin
to rattle their swords, but I doubt whether they would again occupy
$4,000,000 Voted by French Chamber for Unemployed
Germany territory. After a fortnight's rattling they would inform America
—Government Asked Only $1,000,000—Admits 250,- they
were unable to pay what they owe.
000 Probably Are Out of Work.
"It is mining Europe to have Germany underbidding all markets. Neither
A cablegram, as follows, from Paris, Feb. 24, was pub- is it desirable that German employers should make Grnan workmen the
world's coolies. The whole idea of the Young plan is dangerous in the
lished in the New York "Times":
extreme. The Dawes plan could not have been carried through. The Young
Four million dollars in credits for unemployment relief in France were plan, for the moment, gave Germany Reiter burdens, but tried to fix this
burden by transforming it from a debt to States into a debt to private
voted by the Chamber of Deputies to-day.
The Finance Commission recommended the equivalent of $1,000,000 in people.
"I disagree with the German National Socialists (Hitlerites) in most
credits as ample for the time being, but the Socialists insisted that the
figure should be increased to at least four times that amount. They were things but in this matter they are right. They must break the Young plan,
victorious after a prolonged debate, the final vote in favor of the Socialist and I think they will do it. The odd thing is that although the other
amendment augmenting the credits being 285 for and 269 against.
countries will be angry at first at what will be termed Germany's 'breach
It was revealed that 32,000 persons are receiving financial aid because of faith' they will be satisfied in the end. It says in the Bible that one
of unemployment in France to-day but the Government acknowledged that should love one's enemies, but it does not say one should love one's creditors.
this number represents only a fraction of the total out of work. Replying
Expects America to Agree.
to questions by Socialist Deputies, the Minister of Labor estimated that
"I do not think America will be much annoyed either. American polithere are 250,000 unemployed at present in the country.
themselves because the money received
In the course of this morning's discussion of the War Ministry's budget ticians cannot take the initiative
from Europe is used for the redemption of American Federal debts. ThereH. Maginot hinted that further reduction of compulsory military service
fore, Europe must take the initiative, and Germany will, by breaking the
from one year to six months is a possibility of the not too distant future.
suitable opportunity to cancel their
The War Minister pointed out that the military credits asked for this Young plan, give England and France a
agreements with America."
year are no greater than those obtained last year.
Dr. Birck's statement has not met with enthusiasm in the Danish press.
The Conservative "Tidende" says:
"The head of the university ought to have remembered Fontenelle's
President Hindenburg Costs Germany $42,000, Against
words: 'If I held the truth in my closed hand, I should well beware to
$5,500,000 for Kaiser Wilhelm.
open it.'"
The Feb. 22 issue of the New York "Times" published the
following special correspondence from Berlin, Feb. 4:
Agreement Signed on Hapsburg Debts—Rumania and
The difference in the cost of a President and a Kaiser has been °ppm,
Jugoslavia Agree to Pay to Allies Share of Sum
timely pointed out to the restive German taxpayer in a set of figures recently
Left Pending at Hague.
published here.
Before the war the former Kaiser in residence at the Imperial Palace,
Berlin, or at Potsdam, Neu Babelsberg or Wilhelmshohe, cost the German
people $4,500.000, and during the war years $5,500,001 a year. President
von Hindenburg receives in all $42,000.
The President's salary is $12,000 a year. To this is added $30.000 for
the entertainment of diplomats and other expenses of State. At his own
request the President's personal salary was lowered from the original
figure of $15,000.
The former Kaiser's personal salary was $750,000 and the expenses of
State ceremonies and entertainments within the imperial court accounted
or the other $3,750,000.
Germany's Gold Increased Two Billion Marks in Six
Years.
Under date of Feb. 20 the New York "Times" reported
the following from Berlin:
This week the fourth consignment of Russian gold, amounting this time
to 3,800 kilograms, arrived in Berlin. Its arrival was made the occasion
for some calculations on the gold movement into and out of Germany
during recent years.
They indicate that, during the period from 1925 to 1930 inclusive, gold
import into Germany was 3,662 million marks and gold export 1,572 millions. Of the gold imported during the last two years, 70% came from
England, 12% from France and 12% from South Africa. No considerable
importation from America has been received since 1928.
Amsterdam Ascribes High French Retail Prices to Gold
Imports.
An Amsterdam message Feb 20 to the New York "Times"
said:
The fact that while the French index number of wholesale prices has
been declining steadily and rapidly, the average of retail prices has been
rising, is ascribed here partly to the protective policy at the French custom
houses. Dutch bankers, however, consider the real causes to lie deeper and
connected with financial developments.
They are inclined to ascribe it to the increase of 8,500 million francs in
the note circulation of the Bank of France, directly due to the accumulation of gold. There is a feeling also that the high retail prices are checking the turnover of French business and are beginning to cause difficulties
in the French banking community.
Under date of Feb. 19 a Paris cablegram to the New York
"Times" said:
An agreement settling the controversy over the debts of the old AustroHungarian monarchy was signed here to-day by representatives of the
allied and Eastern European Governments, with the exception of Hungary.
These debts amounted to 10,000,000,000 kronen [the pre-war Austrian
silver kroner was worth .2026cl, divided among the successor States.
After The Hague treaty there remained a part of this debt amounting to
some 2,000,000,000 kronen still unsettled, and it was this question which
was regulated by the agreement signed to-day.
Under its provisions Rumania agrees to pay the BUM of 700,000,000
kronen in annuities extending over a period of 25 years to the allied
creditors and Yugoslavia agrees to pay in like manner a total of
44,000,000.
The representative of Hungary, which is the largest debtor, was not
authorized to accept the amount of 1,400,000,000 kronen and was obliged
to refer the question back to his Government. French Government circles
express confidence that the Hungarian Government will accede.
Germany Said to Lead All Nations in Volume and
Number of Dollar Bonds Floated in United States—
Total of 106 Separate Issues Have Par Value of
$1,190,000,000.
Germany leads all foreign nations (excluding Canada
which is regarded as in the domestic financing field) in the
total volume and number of separate issues of dollar bonds
floated in the United States. A statement issued in New
York reporting this said:
A total of more than 400 separate issues of dollar bonds of $2,000,000
or more are now quoted on the various exchanges and in the over-thecounter market, according to a survey made by the First National Old
Colony Corp. Germany's total of 106 separate Government, State, municipal, and corporate issues have an aggregate par value of $1,190,000,000.
Argentine ranks second with a total of 27 issues with a par value of
$450,000,000; Japan next with $423,400,000, while the totals for Brazil
and France are $367,000,000 and $301,240,000, respectively.
The survey, which gives all important details of the various issues,
throws some interesting light on the market rating of the various countries
as evidenced by the current yield of the respective issues. The only out.
FEB. 23 1931.]
1511
FINANCIAL CHRONICLE
standing dollar bond of Great Britain is now quoted on a basis to yield
4.30%, while the City of Rotterdam has an issue outstanding yielding
4.20%, and the average yield of the Dutdi East Indies issues is 3.92%.
The average yield of the various Canadian Government issues is 4.39%;
France, 4.72%; Norway and Sweden, 4.93%, and Denmark, 5.07%.
Argentine has the highest market rating of the South American countries, the various Government issues yielding an average of 6.64%.
Uruguay ranks second with an average yield of 7.56%; Chile third, with
an average of 7.67%.
American Group in Rumanian Loan—National City Negotiates for Syndicate—French to Take $26,000,000 in
In its Feb. 26 issue the New York "Journal of Commerce" reported the following from Paris Feb. 16:
The completion of arrangements for the new international Rumanian
loan will be accomplished shortly, it is expected, following the arrival
here of a representative of the National City Bank representing the
American syndicate. The amount of the loan has been increased to provide for prosecution of the program of road rehabilitation by the Government, sums for this amount being advanced by road building concerns
in France.
In the meanwhile, steady progress is being made to clear the way for
the loan by clearing up claims of holders of prewar bonds issued by
countries whose territories have been absorbed by Rumania. The silver
and paper rentes of the old Austro-Hungarian empire are among these,
as several Austrian and Hungarian provinces were acquired by Rumania
after the war.
The French banking syndicate's portion of the present loan is expected
which came into
to amount to $16,000,000. The American syndicate,
the negotiations relatively late, will take a considerably smaller portion,
it is believed. Other banking groups participating are the Swedish,
join in the offerCzechoslovak and Swiss. The British bankers will not
ing, but it has been indicated that future Rumanian loans may be sponmerely
desiring to abhouses
sored by the British, the London banking
stain from this one issue. The French road building companies are
advancing $10,000,000 of the loan total.
bank have also been
Arrangements for the new agricultural mortgage
advanced, the charter of the institution having been approved by the
this new institution,
finance
to
go
French bankers. The loan will largely
credit stringency
it is pointed out, and thus tend to relieve the great
facing the Rumanian rural areas.
announcement by the Cuban Secretary of the Treasury was entirely new
to them. They assumed that the negotiations just closed have been with
private persons.
Several months ago Grosvenor Tones, chief of the Financial Division of
the Commerce Department, had granted to him a year's leave of absence
and went to Cuba at the behest of Harry F. Guggenheim, the American
Ambassador in Hanava, to study fiscal and financial conditions with the
object of giving the Ambassador and perhaps the Cuban Government the
benefit of his views. It is believed the arrangement announced to-day
may have resulted in part, at least, from his observations.
The Cuban Government for some time is said to have been desirous
of consolidating its public debt, which is chiefly foreign and amounts
to approximately $300,000,000. The Chase National and the National City
Banks of New York are the financial institutions in this country primarily
interested in Cuba, and it is possible that some of the negotiations have
been conducted with them.
The reorganization of the National University would probably be in line
with views of President Machado, inasmuch as students have constituted
a prominent element in recent political agitations against the Government.
According to the "Times," the plan of the Cuban Government to establish a central bank of issue is regarded by
bankers in New York with grave concern. In its comments
the "Times" added:
The step, it is thought, would lead to serious inflation, destroy the credit
of the island abroad, and further add to the serious economic difficulties
with which Cuba is now faced. In the financial district nothing could
be learned as to the identity of the three economic experts which, it was
announced in Havana yesterday, the Cuban Government has engaged to
assist with the organization of the bank of issue and other economic
reforms.
So far as the question of consolidating the Cuban external and internal
debt is concerned, bankers said it was out of the question at the present
time, in view of the state of the bond market.
Reports of the proposal to establish a central bank in Cuba and to issue
Cuban currency to replace the United States currency now circulating in
the island, which have reached bankers here, indicate, it was said yesterday, that a program of serious inflation is contemplated.
According to these reports, the Cuban Government plans to issue
$75,000,000 of bonds to be sold to the bank of issue in return for
$75,000,000 of the new Cuban currency. This currency, the unit of which
is to be the Cuban peso, will have an initial theoretical parity with the
United States dollar.
Would Ship $65,000,000 Here.
Of the $75,000,000 of Cuban currency to be issued by the central bank
will be set
Cuba Plans to Issue Own Currency—Bankers in New in exchange for the Cuban Government's bonds, $10,000,000 $65,000,000
as the capital of the new bank of issue. The remaining
York Deplore Move to Replace Our Money, Fearing aside
purchase
of a like
the
in
is to be employed by the Cuban Government
Inflation—Experts to be Retained—Proposed Bank amount of the United States currency circulating in Cuba. This $65,000,000
United States currency will then be shipped to this country to establish
of Republic.
balances here.
a
in
cablegram,
contained
were
advices
The following
Theoretically, bankers said, the $65,000,000 United States currency would
"Times":
York
represent a gold reserve behind the $75,000,000 Cuban currency. In view
Feb. 18, from Havana to the New
of the pressing needs of the Cuban Government, however, it is feared that
The Secretary of the Treasury, Dr. Mario Ruiz y Mesa, announced to-night
for securing the the balances created by the operation would have to be used for the service
negotiations
concluded
had
Government
the
Cuban
that
in the Government's plans of Cuba's external debt. One authority said yesterday that, in his
advisory assistance of three prominent experts
opinion, the gold reserve behind the new Cuban currency would be gone
to reorganize the nation's fiscal and economic system.
organization of a Bank of Inside of six months from the date of the establishment of the bank
The plans call for new banking legislation,
Cuba's internal and foreign of issue.
the Republic of Cuba, and consolidation of
It is understood that the Cuban Government contemplates making the
system is also contemplated.
debts. The reorganization of the public school
later this week, when new Cuban currency legal tender for all debts in the island, should the
announced
be
to
are
experts
the
of
names
The
services. They are expected plan be acted upon, regardless of whether the debt contracts called for
President Machado signs the contracts for their
payment in United States money. The result of such a move would,
to arrive the second week in March.
Cuba was introduced this bankers believe, be to drive out of the island all United States currency.
A bill to establish a Bank of the Republic of
Rio, President of At the present time, it is estimated, there is in circulation in Cuba about
afternoon in the Senate by Senator Celso Cuellar del
submitted to the $150,000,000 United States currency, or more than twice as much money
the Popular party. It was approved in principle and
will be as would be initially put in circulation by the new plan.
modification committee for a final report Monday, when a vote
The inevitable tendency, it was said, would be for the Cuban Governtaken on it.
ment to issue more bonds to the central bank in return for more currency,
Twenty-Year Concession Planned.
emission until serious inflation resulted. It is understood that the position of the
It is proposed to give the bank a 20-year concession for the
in gold Cuban Government in the matter is that the present hard and exceptional
of Cuban gold, silver and paper money having as a guarantee 50%
mercan- times require radical measures. The island stands in need, representatives
and silver coins to be deposited in the bank's vaults and 100% in
as its of the Government are reported to have said, of a certain amount of
tile paper, except $50,000,000 in paper money which will have
bonds. Inflation to tide the distressed sugar industry over its difficulties.
Government
in
100%
and
paper
mercantile
in
guarantee 100%
This point of view is vigorously disputed by leading bankers here, who
The Government would float a special issue of bonds for this purpose, contend
that periods of economic depression cannot be cured by inflation.
guaranteed with a tax on the letter of exchange to be created, thus increas- On the
contrary, it is contended, the work of a depression period is to
ing the bank's resources and making possible the acquisition of a gold mend the
inflation of preceding boom times.
money would have
stock for the stabilization of paper money. The paper
According to the understanding of bankers here, the Cuban Government
parity with gold and silver Cuban and American coins.
intends that the new bank of issue should supply capital to the sugar
The emission of paper money would follow methods similar to those Industry.
There is no place in Cuba, however, according to bankera
used by the Bank of Spain and the Bank of France. The distribution of here, for a
bank of discount. The island is a one-crop agricultural country.
credits and guarantee of money would have the same basis as the Federal No
liquid paper such as a bank of issue is intended to handle arises out
Reserve Banks in the United States. The direction of the bank would of
the sugar industry. Loans to the industry are made from crop to
be in charge of a non-political board of directors, five to be appointed
They are contracted at the beginning of the season and paid off
by the President and one each by Congress, the Havana Clearing House, cropwhen the crop is sold. As a result, virtually all the commercial paper
and
Sugar
Planters
the
Manufacturers,
Cane
of
Association
National
the
in the island is of identical maturity, providing no liquidity.
National Cane Planters' Association, and the Cuban Chamber of
In addition to the issuance of a Cuban currency, it is understood, the
Commerce.
Cuban Government plans to increase the limit of its silver coinage from
Our Bills to be Retired.
$12,000,000 to $32,000,000. This increase is based on the Government's
As the new bank issued paper money, all United States bills now in contention that, whereas in other countries the silver coinage amounts to
being
legal
money
tender
here.
circulation would be retired, only Cuban
$10 per capita, in Cuba the average is much lower. The increase of
Silver certificates would be in $1, $2, $5, $10 and $20 denominations, and $20,000,000 in the silver coinage contemplated would raise the per capita
in
also
$100,
and
$500,
$1,000
denominations,
same
the
gold certificates in
money is in the form of coinage to $10.
and $10,000. At present the only national Cuban
Fiat Money Predicted.
minor coins.
From Washington, Feb. 18, the "Times" reported the
following:
Beyond a somewhat vague knowledge that sweeping fiscal and banking
changes were being considered in Cuba, the reorganization plan announced
here.
in Havana to-night was a surprise
Senor Don Orestes Ferrara, the Cuban Ambassador to the United States,
but had understood plans were being
said he had no advice on the matter,
considered for reorganizing the National University, both financially and
academically. It is probable, he added, that an American will be selected
that he had no idea who the American
to supervise this work, but he said
would be.
Officials charged with supervision of Latin American affairs at the State
Department said they had heard nothing of the reorganization and that the
A substantial part of the additional silver coinage minted under these
plans is to be placed in the vaults of the bank of issue, it is understood,
and against this silver, paper currency, corresponding to our silver certificates, is to be issued. The money, bankers said, would be fiat in
character, since the silver content is expected to be low.
Bankers here are at a loss to understand why the Cuban Government
should desire to establish a bank of issue. At the present time United
States currency circulates in the island, while the small coins are put out
by the Cuban Government. The Federal Reserve Bank of Atlanta maintains a branch in Cuba to supply the island with its currency requirements.
Under these conditions Cuba has available an exceedingly strong currency and is troubled by none of the exchange difficulties which would
result from the issuance of Cuban currency. The establishment of a
1512
FLNANCTAL CHRONICLE
Cuban bank of issue would, it is thought, immediatel
y drive the branch
of the Federal Reserve Bank of Atlanta out
of the island.
Should Cuba undertake to carry out the
plan for a bank of issue, bankers
said the supply of large credits which Cuba has
been obtaining in the American market would be cut off. No bank,
it was said, would care to make
loans when to do so meant running the
risk of repayment in depreciated
currency.
The Cuban Government's total indebtedne
ss amounts to approximately
$215,000,000, aeocrding to bankers informed
upon the affairs of the
island. Of this approximately $180,000,0
00 is external, about $140,000,000
being in the hands of the public; $20,000,000 reputedly
consisting of a bank
loan made by the Chase National Bank, and $20,000,00
0 still owed on
account of the construction of the central highway.
The two latter items
were intended to be liquidated by a $40,000,000 public
works issue, it is
understood, but the operation has been delayed by the state
of the bond
market.
In addition, there is an internal indebtedness of about $15,000,00
0 and
a cumulative budget deficit of about $20,000,000.
The Cuban Government is currently operating with an annual deficit of about
$10,000,000 a
Year. Government revenues for the period from July 1 to Dec. 31 last
amounted to $29,000,000, it is reliably reported, whereas expenses
came
to $34,500,000 in the same period.
The large military establishment maintained by Cuba is regarded
by
bankers as the chief cause of the Cuban deficit. Drastic economies
are
required, bankers said, to balance the budget, and the bulk of these
economies ought to come out of the military expenditures.
Bankers were uncertain as to whether Cuba could pursue the plan for a
bank of issue without securing the consent of the United States Departmen
t
of State, under the Platt amendment. The issuance of $75,000,000
bonds,
under the plan, as a basis for the proposed Cuban currency would,
it Was
thought, require the State Department's approval.
['VOL. 182.
Rio de Janeiro State Plans Loan.
According to Sao Paulo (Brazil) advices to the New York
"Times" the Secretary of the Treasury of the State of
Rio de Janeiro announced on Feb. 25 a plan for floating
an internal loan of 30,000 contos (about $2,565,000) on
long-term bonds at 7%, with local banks expected to take
the bulk of the issue. It is added that the State of Rio de
Janeiro is leading all others in reforming its financial structure, with the result that its credit rating abroad and at
home is above the average.
Coffee Taxes Upheld—But Sao Paulo Growers Will
Protest to President Vargas.
From Sao Paulo a cablegram Feb. 24 to the New York
"Times" said:
Sao Paulo growers who yesterday raised objection to the new
Government
taxes on coffee were told to-day by the authorities
that the taxes were
unavoidable. The tax of three shillings (about 75 cents) a sack
is explained
as a fee which the State of Sao Paulo is obligated to pay
to Britain on a loan.
The coffee growers, not satisfied, will take their case
to Provisional
President Getullo Vargas for final settlement.
Paper Money in Mexico Issued by Defunct Banks
Valueless.
Associated Press advices from Mexico City Feb. 25 said:
Representative McFadden Proposes Creation of Com- byPublic notice was served to-day that effective Sunday paper money issued
now defunct banks of emission will be valueless.
mittee to Investigate Activities of International
Holders ofsuch notes were advised to change them for their present
quoted
value at the headquarters here of the Bank Liquidation Commissio
Committee of Bankers on Mexico.
n.
The creation of a special committee of the House of
Representatives to investigate the activities of the Intorno, Colombians Create Business Study Board—Senate
Retional Committee of Bankers on Mexico and recommend
jects Cut in Cabinet Salaries—Oil Bill Passes
legislation at the next Congress is proposed in a resolutio
Crucial Reading.
n
(H. J. Res. 518) which Representative McFadden (Rep.),
A cablegram as follows from Bogota (Colombia) Feb. 24
of Canton, Pa., Chairman of the House Committee on is taken from the New York "Times":
Banking and Currency, introduced Feb. 24. The
The House of Representatives, considering the difficult
"United tion
economic situayesterday, appointed a commission of five Representatives
States Daily" of Feb. 25, reporting this added:
who, with a
similar Senate
commission, will hold public hearings in the various Skate
His resolution would have the Committee ascertain whether
the Inter- capitals and co-operate with the Government and
national bankers in Mexico have attempted to dominate
Chambers of Commerce
the Mexican in the study of relief measures.
policy of this Government or to influence the United Skates
courts, depreThe
Senate
refused
to grant the Governmen, authority requested by
ciated Mexican bond values or otherwise complicated relations
between the Minister of Finance to reduce the salaries of the President
the United States and Mexico.
and Cabinet
members as part of the general cut in the Government
The resolution was referred to Mr. McFadden's Committee
pay-roll. The
, without President receives 824,000 a year.
any announced program for consideration in this Congress.
The resolution
The President signed a decree yesterday, according to El Espectador,
follows in full text:
declaring air mail service to be an exclusive State function and placing
Joint resolution to authorize an investigation of the activities
of the In- the Colombian-German Scadta in charge, subject to
ternational Committee of Bankers on Mexico.
a contract to be
signed by the company and the Government. The decree provides for
Resolved by the Senate and House of Representatives of the
United States or extension of the air mail service to all cities and towns of sufficient
imAmerica in Congress assembled, that for the purpose of obtaining
information portance.
necessary as a basis for legislation. the Speaker of the House of
Represensecond
The
reading
of
the
new
bill
oil
was
approved
in
the
House
to-day.
tatives is authorized to appoint a select committee to consist offive
Members This practically completes the work of that body, as the third reading is a
of the House who are Members elect to the 72d Congress, which
Committee mere formality. After spending 16 days on the approval of 30 articles the
shall conduct an investigation to determine whether or not the
Internatio
nal remaining 24 were adopted practically unchanged with unexpected dispatch.
Committee of Bankers on Mexico has exercised dominance over
the Mexican Production taxes on private lands were approved by an overwhelm
ing vote.
policy of the State Department, attempted to influence the courts
of the despite the efforts of representatives of several oil companies to obtain
United States, drained the Mexican Government of much needed
reduction.
a
funds,
surrendered the rights of security holders, confused the titles of
foreign debts, enjoyed preference over other classes of Mexico's Mexico's
creditors,
caused the reduction in value of Mexican bonds, minimized that
Jamaica Must Economize—Governor Warns of Deficit—
nation's
credit, aroused ill will toward the United States, and otherwise
Payments to Great Britain Brought Up.
complicated
our relations with Mexico. The Committee shall report its findings
to the
cablegra
House during the first regular session of the 72d Congress with such
A
m from Kingston, Jamaica, Feb. 24 is taken
recommendations for legislation as it deems advisable. Upon
the filing of such as follows from the New York "Times":
report the Committee shall cease to exist.
Sir Reginald E. Stubbs. Governor of Jamaica, opened the
Sec. 2. For the purpose ofsuch investigation the Committee is
Legislature
authorized. this afternoon and said in his address that the financial
notwithstanding the expiration of the Congress, to sit and act at
position of the colony
such times necessitated caution. The accounts of
the finroicial year now ending, he
and places In the District of Columbia or elsewhere, to hold such hearings,
to said, were expected to show a deficit of .£124.000
employ such experts, and such clerical, stenographic, and other
about 8620,000 with
assistants, to revenues of £2,226,000 (about 811,130,0001
and expenditures of £2,350,000
have such printing and binding done,and to make such expenditures (includ[about $11,750,0001. The estimate for 1931-32
ing expenditures for travel) as it deems necessary.
revenue 19 £2,228.000
[about 811,140,0001 and for expenditures E2.207,000
[about 811.035,0001.
Sec. 3. There is authorized to be appropriated such sums as may be
necessary to carry out the provisions of this resolution.
Associated Press advices from Kingston Feb. 24 said:
The Legislative Council opened to-day with George
Seymour, an elected
member, offering a resolution that Great Britain
forego for a period of
years Jamaica's contribution of 8300.000 toward the
imperial war debt.
Cuban Loan Inquiry Is Asked in Congress—Repre- He urged that the money be applied
to aid the sugar Industry and
save
sentative McFadden Questions Machado's Status the laboring population from destitution.
The Governor, Sir Reginald E. Stubbs, announced that legislation for
in Bill to Study Proposed Move.
control of immigration would be proposed. He said
it was likely that
A bill seeking an investigation of the proposed loan of the Chinese would be prohibited from entering Jamaica
for three years. and
after that a limited number would be admitted under a
Cuban Government, also an inquiry into the legality
quota system.
of
the status of President Machado and the Cuban Legislat
ure,
was introduced in the House on Feb. 20 by Represen
tative Chile Bans Futures Trading on Margin or Instalments.
McFadden of Pennsylvania, Chairman of the
From the New York "Times" we take the following (AsBanking
and Currency Committee. A dispatch to the New
York sociated Press) from Santiago, Chile Feb. 20:
"Times" from Washington, from which we quote,
Premier Castro Ruiz to-day denied foreign rumors that the Stock Exchange
added:
Mr. McFadden
called the attention of the House to the
proposed Cuban
loan some time ago, declaring at that time that certain
New York financiers were floating the loan and were about to soli the
securities in this
country.
The bill proposed to-day would authorize Speaker Longworth to name
a special committee of five members of the House, each a member
-elect of
the next Congress, to conduct the investigation.
It demands a report at the first session of the next Congress and carries
an indefinite appropriation.
might close because of a new law against speculation. He said the authorities
were highly pleased with the law, which required that all transactions be
for cash.
"Transactions are normal, and prohibition of speculative operations will
not affect the situation of the Stock Exchange," he said.
To assist the brokers, the Premier said, ninety days were allowed for
liquidation of book accounts, but the law was in effect for all new transactions. Chile had an old law against transactions similar
to margins in
other countries, and the new one made more clear the prohibition of speculation by eliminating instalment buying of futures of
all kinds.
Previous allegations by Mr. McFadden respecting the
Cuban loan were referred to in these columns Feb. 21, page
A reference to the proposed regulations appeared in our
1332.
Issue of Feb. 21, page 13.13.
FEB. 28 1931.1
FINANCIAL CHRONICLE
1513
will
with Senors Lopez and Anton under which the Spanish institution
British Banks provide the funds for reopening the local bank, in return for security of
Former Chilean Envoy to London Denies
Move $2,000,000 in credit papers owned by the Banco del Comercio.
Seek Control in Chile—Dispels Rumors of
More than 100,000 Spaniards here as well as many Cubans have deposits
Field.
Loan
in
Americans
to Supplant
in the bank.
14, is
The following cablegram from Santigo, Chile Feb.
Decline in Havana Railways' Revenues.
from the New York "Times":
Agustin Edwards,
A cablegram as follows from Havana Feb. 19 is from the
The unexpected publication of an open letter signed by
to London, emphatically
a prominent banker and former Chilean envoy
New York "Times":
bring British capital on a vast scale
denying that negotiations designed to
are now taking place in New
to the consolidation of Chile's foreign debt
were seeking to
York, has helped to dispel rumors that British bankers
of Chile's foreign loans.
supplant American bankers as the principal source
official banking agency
The National City Bank of New York is now Chile's
The board of directors of the United Railways of Havana, a British
who
organization, has informed J. Hunt, the company's managing director,
were
came from London on an inspection trip, that the 1930 revenues
July 1
$3,204,929 below the 1929 total. The shortage was counted from
1930.
abroad.
for
causes
that
Mr. Hunt arrived last week for a personal investigation of the
This rumor originated in a Genoa dispatch published here, adding
approved to-day the views of the directors,
He
receipts.
mark
in
would
bankers
British
the
decrease
under
debt
foreign
the consolidation of Chile's
in the local financial field, who blamed the building at a central highway, the curtailment of the
the first step toward London's predominance
the diminusugar output, the government's forced reduction in freight rates,
bankers.
American
by
held
hitherto
position
a
plantings and the general decrease in the purchasing capacity
Mr. Edwards stated that the rumor was absolutely without foundation tion in cane
with such an aim. of Cuba.
and that he never intended to approach the government
The announcement was made by the directors as to possible remedies,
He declared that the present state of Chile's finances did not warrant the
ons to
by
bringing
less
much
changes,
it is understood Mr. Hunt will make important recommendati
but
by
improved
be
could
belief that they
his return.
on
directors
York.
New
the
London
of
those
with
competition
into
bankers
London
In addition to Mr. Edward's denial, others of a similar nature were published by the First National Bank of Boston and the associated companies Money Order Service to Liberia Suspended—Action
was said the Minister of
of the Chase National of New York, in which it
Requested of Post Office Department by Republic.
Finance had not sought the financial services of foreign bankers as asserted
.
representative
banking
local
a
of
in a recent letter
The following is from the "United States Daily" of Feb 19:
States
Suspension of the exchange of money orders between the United
announced by the Federal Post Office
was
of
Liberia
the
Republic
—Says
and
Argentine
Recovery
Sees
Minister
Finance
Department Feb. 18.
Chief Danger Is Excess of Optimism.
The reason given for the suspension of this service, Charles E. Mathews,
to
York
the
New
13
Feb.
superintendent of the Division of Money Orders, said, is that the DepartA Buenos Aires cablegram
ment has just received a cablegram from the Liberian government stating
"Times" said:
that "for obvious reasons" suspension of this service is deemed advisable.
Minister of Finance Perez stated to the press to-day that "the current It is thought it refers to the distressed rubber situation and political unrest
harvests will be amply placed in world markets."
in that country.
"The worst of the economic depression is regarded as past, and Argentine
In accordance with this action, Frederic A. Tilton, the Third Assistant
Exchange is beginning a steady rise. The confidence of producers in our Postmaster General, issued the following statement:
being
optimnow
danger
impatient
chief
the
future has been re-established,
Postmasters at all international money-order offices are hereby notified
ism, as a gradual improvement is desirable.
that the Postal Administration of Liberia has temporarily suspended the
"Argentina's unfavorable trade balance may be corrected during 1931."
exchange of money orders with the United States.
Until further notice, therefore, postmasters will decline to issue money
that country and will give the necessary instructions
Dr. Schilling of German Reichsbank to Advise orders for payment in money-order
clerks at all international branches and
in the matter to the
Bank.
Argentine
stations.
A Washington dispatch Feb. 18 states that Dr. Joseph
Schilling director of a branch of the German Reichsbank, Peru Deposits 50% on March 1 Payment—Remainder Now
Deposited in Peru May Be Used to Service Bonds.
has arrived in Argentina for the purpose of undertaking a
In its Feb. 25 issue the New York "Journal of Comreorganization of the Banco de La Nacion, according to cable
advices to the Commerce Department's Finance and Invest- merce" said:
Approximately 50% of the funds required to service the Peruvian
ment Division to-day from Commercial Attache Alexander
bonds on which interest falls due on March 1 have already been deposiAires.
V. Dye at Buenos
ted in New York, it was learned yesterday. The equivalent in Peruviat.
Adds Tariffs—Duties Placed on Many
Articles Hitherto Free.
From the New York "Times" we take the following from
Buenos Aires Feb, 21:
Argentina
After next Monday tariffs must be paid on many articles hitherto duty
free in Argentina. The chf,ef items follow, the figures signifying the per
cent ad valorem: Machinery 6, spares 10, fuel oil 5, sewing machines for
shoemaking 10, needles for sewing 25, printed books 10, eggs 10, rowing
boats 10, pleasure yachts, both sail and power 25.
A decrease by the Ministry of Finance establishing the duties has been
signed by the Cabinet.
Previous advices to the same paper, from Buenos Aires
Feb, 20 said:
At a Cabinet meeting to-day for discussion of the budget, new taxes on
luxury goods and the gradual introduction of income taxes were suggested,
but no formal resolution was adopted.
The speedy inprovem,nt in the Argentine exchange continues, owing to
increased exports, and a setback is considered improbable.
currency of the remainder is on deposit in the branch of an American
bank in Peru. Whether or not this will be remitted is still uncertain.
Several weeks ago officials of the Provisional Government stated that
Peru would be unable to meet its March 1 payments. However, it was
considered possible that the amount deposited in Peru may as required be
remitted, becoming available to meet service charges.
What is to be done with the deposit now in New York if the funds held
in Peru are not converted into American currency has not yet been decided. If lawyers so advise bondholders will receive a partial payment
on their interest coupons.
The Peruvian Government 7% bonds due in 1959 have a semiannual
service charge of approximately $600,000 falling on March 1 and September 1. Approximately $300,000 is already on deposit here. The
bankers have inquired of their representatives in Peru as to whether the
remainder is to be remitted in time to make the required payment. This
issue was offered in 1927 to the amount of $15,000,000.
Service charges on the 6% bonds due in 1960 were met promptly last
December. At the time it was reported that the necessary funds had
been raised in part through an internal loan. On April 1 the semiannual
charge of about $800,000 on the 6% bonds maturing in 1961 becomes
payable.
following
Market quotations on Peruvian bonds recovered yesterday
activthe decline last week upon cables reporting counter-revolutionary
at 50%.
closed
and
point
1
ities in Lima. The 7% loan of 1959 gained
6s of 1960, which
There was a rise of one-eighth of a point for the
a gain of
closed at 30,i. The 6s of 1961 closed at 30, showing
point.
Cuba Will Restrict Insurance Companies—Curb to Be
Put on Exporting of Reserve Funds—Havana
Bank Plans to Reopen.
The National Economic and Financial Commission, prePeru to Pay Interest on Tobacco Loan.
sided over by Dr. Rafael Molitor°, former Secretary of State,
The following Associated Press account from Lima,
announced on Feb. 19 that the Government would take steps Peru, Feb. 27 is from the New York "Sun":
with the National City
The Peruvian government arranged today
to prevent further exportation of reserve funds of all foreign
complete interest
of New York to transfer by cable $300,000 to
Bank
Cuba
in
and
to
established
compel
the
insurance companies
the first corresponding
and sinking fund payments due March 1 on
Institutions to invest 50% of their reserve capital in Cuban tobacco loan, issued by J. & W. Seligman & Co., of New York.
securities. A cablegram Feb. 19 from Ilavana to the New
The paper quoted s"id:
5% Sterling Loan of
York "Times" from which we quote, added:
W. R. Grace & Co., trust...es of the Lima. Peru,
funds are now available for the coupons due January
The recommendation of the commission was in the hands of President 1911, announce that
paid upon presentation at the Grace National Bank.
be
will
and
had
heard
1,
reports
1931,
from
commission
Armando
the
after
t
Machado to-nigh
and
Antonio
Exchange,
Anton,
Stock
PresiCuban
the
of
President
Parajon,
stating that more than $11,dent of the Association of Cuban Merchants,
Heads Peruvian Banks.
000,000 in cash had been exported by insurance companies, thus depriving
seriously
the
endangering
and
financial
From the New York "World-Telegram" of yesterday we
the country of that circulation
stability of the country.
take the following (Associated Press) from Lima, Peru,
President Machado was informed to-day by Laureano Lopez, Antonio
of
the
members
all
executive
Feb. 27:
Iloyos,
board
Torre
de
Marques
Anton and the
Comercio here, that the institution would
Jose Carlos Bernales today was appointed Superintendent of Banks by
of directors of the Banco del
that creditors and depositors would the Government and will liquidate the Bank of Peru & London, which
and
15
March
on
businness
for
reopen
has been operating under a moratorium for some time. The post was
be paid in fall.
the Banco Hispano-Americano of Madrid, suggested by Prof. Edwin E. Kemmerer, head of an American comThe Marives is a councillor of
and has reached an agreement mission now studying Peruvian finances.
sha largest 'malaisg institution in Spain,
1514
FINANCIAL CHRONICLE
[Vora. 182.
Argentine Peso Up.
A week ago (Feb. 21) the New York "Time
s" published
The following (Associated Press) from
Buenos Aires, the following from Chicago:
Feb. 21, is from the New York "Evening
Persistent rumors were in circulation
to-day that the Federal Farm Loan
Post":
Board bad sold cash
Continuing rapid
recovery accompanied by heavy exports
, the paper
peso today reached 305 per $100.
In five weeks the peso has risen 33
on the $100. On January 13 it was
quoted at 33.5 per dollar.
Federal Farm Board's Grain Stabilizat
ion Corpo
To Dispose of 35,000,000 Bushels of Whea ration
t Abroad
in Next Four Months.
In a statement issued at Chicago on Feb. 26
by George S
Milnor, President of the Grain Stabilizatio
n Corp., operated
under the Federal Farm Board, it was annou
nced
corporation will sell in export markets, in the that the
next four
months, not to exceed 35,000,000 bushels of
wheat. Mr.
Minor's announcement follows:
"There have been persistent rumors
both in this country and abroad
regarding the probable selling policy
of the wheat under control of the
Federal Farm Board. It is believed that
the effect of such rumors upon
the grain market creates a feeling of uncerta
inty that the facts do not justify.
Therefore, this corporation, which owns
all of the so-called Farm Board
wheat, is very glad to announce the
following policy which has the full
concurrence of the Federal Farm Board:
"The corporation has some stocks of choice
milling quality wheat at the
Atlantic seaboard. Gulf, and in the Pacific
Northwest which, on account
of position, cannot move into domestic
markets advantageously for milling,
drouth relief, or feeding purroses.
In order that such stocks may be disposed
of in ample time to clear the
port facilities for taking care of the new
1931 crop, it is deemed advisable
that such wheat be sold in export market
s during the next four months.
The quantity available will not exceed
35,000,000 bushels, including Pacific
coast wheat, which will move largely
to the Orient.
"The wheat will not be offered at lower
prices than those ofother principal
exporting countries, taking into accoun
t customary differentials for grades
and quality. This enables the United
States to participate in an equitable
basis to supply the requirements of import
ing countries.
"The above is the maximum amount
that the Corporation will sell for
xport on this crop, unless unfores
een crop or market conditions should
cause world markets to advance to a price
substantially above our present
domestic level.
"There is nothing in this export policy
that will interfere with, or cause
any change in, the domestic policy on
the 1930 crop which has been in
effect for some months past."
The New York "Times" in a Chicago dispatch,
stated that the decision of the corporation to expor Feb. 26,
t 35,000,000 bushels of "choice milling wheat" was follo
wed by
break
a
of 2M cents a bushel in the Board of Trade
's wheat
pit. The dispatch likewise said:
wheat abroad materially below the price at
which it
could be obtained in the United
States, and selling on the Board of Trade
here induced by these reports
, was largely responsible Dar a break in futures
toward the close of the market
that carried the new crop months off % to
% cents from Friday's finish,
while the old crop deliveries were unchanged
to % cents lower, the latter
on May.
A local house had a message
from its office in New York quoting one
of the largest of the North
American exporters as confirming sales of wheat
to both Antwerp and Rotter
dam at prices that figured about 10 cents
a bushel under Chicago
May, f. o. b. Gulf of Mexico, but the quantity,
It was said, was not known.
The Farm Board was quoted in the same message as denying that it had
made sales, but the exporter stated positively
that the transactions had
taken place. The Farm Board said it nad had
bids equal to 8 cents a bushel
under May, but the exporter said this was
positively untrue.
Break in Winnipeg.
The report caused a break
on the Winnipeg market, the close there
being 1,34 cents lower. Scatter
ed longs started to liquidate, and there
also were selling orders from
Chicago.
A dispatch, Feb. 22, to the "Times" from
Chicago said
in part:
Farm Board Deals Still Heavy.
Farm Board operations in
cash wheat continue on a liberal scale and
at times the government
organization is the principal buyer because of
other interests being unprov
ided with storage room for wheat.
Kansas City and Omaha offered
No. 2 hard freely last week around
4 cents under Chicago May,
track here, without finding buyers. No. 2
hard in the sample market at
Chicago is 3% to 4 cents under and No. 1
is 234 to 3% cents under
old May.
Evening up of trades between
old and now May and between March
and May put the latter
down to the pegged price to a fraction above.
while the old May was 1 cent
to 154 cents over the government prices.
No price can be fixed for July
and September wheat until more is known
about crop prospects. It is
doubtful whether any announcement will be
made before the last week
in April or the first part of May.
A member of the Grain Stabili
zation Corp. says that it is not considering going into the new crop,
although an emergency might arise that would
necessitate such action. It was
not expected that Farm Board companies
would take hold of the 1930
crop, but it is said they were forced into it to
protect banking and business
interests.
We are only a week off from
March deliveries. Fair deliveries of cash
wheat to the Farm Board compan
ies are expected in Chicago. in the Southwest and possibly in the
Northwest.
Anxious About Farm Board Stand.
Members of the Terminal Elevato
r Association have been considering
for some time the questio
n of deliveries in March and May. Having
futures sold against cash wheat
as a hedge, they are anxious to know the
Farm Board's intentions.
Chicago elevators are filled and if deliveries
are made here they are likely
to be on track.
Elevator men say they would like
to arrange with the Farm Board to
have it accept cash wheat at
various points, ranging from Montreal to
the Gulf, and take the May in
exchange, which would let them in on their
hedges.
A good increase is expected in the
United States visible supply for the
week, stocks at Chicago, Duluth
and Minneapolis alone increasing 1,500000 bushels.
The price recession was due to selling by traders
, who interpreted the
decision as meaning a price-cutting war with
other
ducing countries. But both Mr. Minor and Alexan wheat-surplus proder Legge, Chairman
of the Farm Board, made it plain that there was no
need for undercutting.
Mr. Milnor, indicating that no dumping policy
was contemplated,
declared that the wheat, being sold to provide
port storage space for the
1931 crop, would not be offered at "lower prices than
those of other principal
export countries, taking into consideration
customary differentials for Federal Farm Board is Credited by Secretary Hyde With
grades and quality."
Aiding Wheat Price.
The effect of these explanations was felt toward
the end of the trading
day, the market rallying slightly. . . .
The Federal Farm Board through its operations under the
Coming a week before the reported withdrawal
of Mr. Legge as Chair- Agricultural Marketing Act and the prese
man of the Farm Board, the export plan,
nt tariff were
estimat
one-eighth of all the visible wheat in this countr ed to comprise about given credit by Secretary of Agriculture Hyde as
having
y, was regarded in Chicago grain circles as being the first step toward
liquidation of the gigantic made possible a wheat price in Chicago that is 35e. higher
holdings of the governmental agency.
Earlier in the day Mr. Legge than its normal position
with relation to the Liverpool
had declared his belief that the Grain Corp. had
been "selling small amounts
market. The advices to this effect were contained
of wheat out of position, as it always had
done."
in a
James C. Murray, President of the Board
of Trade and a member of the Washington dispatch, Feb. 23 to the New York "Jour
nal of
Farm Board's advisory group which created
the
Stabili
zation
Comm
Corp.,
erce
in" which continued:
dicated his approval of the Milner proposa
l.
"I think the action of the Stabilization
"Ordinarily wheat prices on the Chicago market
Corp. in proceeding to move the bushel
range about 17 cents a
seaboard stocks of wheat is a step in
below
the price for comparable grades on the Liverpo
the right direction," he said. "The
ol market."
the Secretary said. "Now the spread
Corporation's frank statement of
intentions will be commended by
is in favor of Chicago. In fact.
the United States wheat prices
grain trade."
lately have been higher than wheat prices in
the principal foreign wheat market
s. The closing price of May
From the "Wall Street Journal" we take
at
the following Chicago on Feb. 19, for example, was 83% cents, compared with wheat
65 cents
at Liverpool, 64'4 cents at Winnip
from Chicago, Feb. 26:
eg and 51% cents at Buenos Aires. The
favorable spread at Chicago over Liverpo
ol was 18% cents; over Winnipeg
Wheat futures at both Chicago and
Winnipeg declined sharply, following 18% cents, and over Buenos Aires
31% cents. The Chicago price of May
publication of this statement. Deliver
ies at Chicago broke % to 2% cents wheat on Feb. 19 was more than as
much above the Liverpool price as it
from the previous closings, with
weakness particularly concentrated
in the Is normally below it. In other words, at present the Chicago price is
present non-stabilized new crop
35
deliveries. The July contract sold down cents higher than its normal position with
relation to the Liverpool market.
to 64% cents, the lowest price since
Jan. 29. Final prices were within
"The tariff is the falcrum and the Agricultural Market
striking distance of the day's bottom
ing Act is the lever
s, showing losses of % to 2 cents. which is maintaining prices of American grain above
Winnipeg was also under severe
the world market
commission house pressure from houses levels."
with New York and foreign connect
ions, closing off 2 to 2% cents,
final
prices representing the day's lows.
. . .
Would Amend Farm Act—Prof. Boyle of
The Pacific Coast stocks are expecte
d to be taken largely by the Orient.
Cornell SugHowever, Australia, which recently
gests Stripping Federal Farm Board
offered its farmers a bonus of 12 cents
of Monopolistic
a bushel on all exported wheat
in an effort to dispose of a record
Power
s.
crop of
205,000,000 bushels, will afford keen competi
tion in the Far East.
The price of the stabilized contrac
Amendment of the Agricultural Marketing Act,
ts at Chicago is about 25 cents over
world parity.
the Farm Board but depriving it entirely of retaining
Plans of Grain Stabilization Corp. for
disposing of a maximum of 35.- funct
ions of merchant, speculator and banker, its present
000,000 bushels of choice milling wheat in
export markets are unaffected
was
by the Australia Government export bounty
Profes
by
sor James E.Boyle of Cornell University suggested
of 12 cents a bushel in so far
as the price at which the corpora
as the next
tion will sell is concerned, as in announcing practical step toward
agricultural prosperity in an address
its policy, George S. Milnor, Preside
nt, specifically stated that possible
on
exports would not be offered at lower
Feb.
18
at
Minne
apoli
s
before the Farmers Elevator
prices than those of other principal
exporting countries. Neither the Australian bounty
nor the Corporation's Convention. The "Wall Street Journal"
own export policy will be allowed
reports this in a
to interfere with the domestic polio on Minneapolis dispatch
which continues:
the 1930 crop, which has been in effect
for some months.
Stripped of its practically monopol
The Stabilization Corp. is committed
istic powers, such a Farm Board
to maintaining the domestic price could
render invaluable service in the way
and may be expected to do all it
of information and in helping
can in preventing outside market factors to
promote industrial co-operation, Profess
from adversely affecting domestic price
or Boyle believes.
levels. Any ill-effects which the
Declaring that the Farm Board's idea
Australian bounty may have on the
of grain marketing through great
domestic market are llkely to be of a central
ized agencies or pools is economi
temporary nature and not to presage
cally unsound, he pointed out that
any permanent reduction in prices.
the carrying charges of the 130.000
,000 bushels of cash wheat the board
FEB. 28 1931.]
FINANCIAL CHRONICLE
expects to terminate the 1930-31 crop year with, alone will cost the taxpayer no less than $66,000 a day.
"Grain marketing through local farmers' elevators has stood the acid text
of time," Professor Boyle stated, "and now is our largest example of successful co-operative marketing: this grain also is handled at the lowest
margin of cost of any agricultural commodity.
"The farmers' elevators are built on the sound principle of self-help.
They do not need any state aid in the form of subsidies, grants or cheap
credit. They are sound business institutions, not objects of charity.
State aid, plus state interference (its necessary concomitant) will prove
in the end a serious menace to the farmer elevator movement."
The farmers' elevator movement has had a large share in the past in
this wider form of industrial co-operation. There is no substitute for the
farmers' elevator, Professor Boyle concluded.
1515
Petition to Premier Bracken by Manitoba Anti-Compulsory Pool League for Cancellation of Existing
Contracts.
The following from Winnipeg, is from the "Wall Street
Journal" of Feb.24:
Cancellation of existing Pool contracts and an investigation into the
affairs of the Manitoba Wheat Pool are being asked of the provincial
Government by the Manitoba Anti-compulsory Pool League. In their
petition to Premier Bracken, members of the league state that much of
the distress among farmers in Manitoba is directly attributable to operation of the Manitoba Wheat Pool. They also submit to the Government
that the enactment of legislation for the compulsory marketing of any
kind of grain be not considered.
Federal Farm Board Criticized at Convention of Eastern
Federation of Feed Merchants at Syracuse, N. Y.—
Canada Wheat Carryover.
President Hoover Quoted as Opposed to GovernFrom the "Wall Street Journal" of Feb. 21 we take the
ment's Entrance in Business.
following from Winnipeg:
The Agricultural Marketing Act and the Federal Farm
Unofficial but well authenticated figures published here show that the
from 1930 totaled 130.000,000
Board were severely criticized and private business was de- volume of Canadian wheat carried overwith
48.6% and the Pool 51.5%.
Of this, the trade is credited
fended by speakers at the midwinter convention of the East- bushels.
This has been substantially reduced in volume, but not relatively by inSyracuse,
All sources agree that carryN.
at
on
Y.
February.
Merchants
Feed
of
and
ern Federation
creased sales during January
Feb. 19 according to a dispatch to the New York "Times" over into the new crop will not be nearly so heavy as at first anticipated.
which further said:
The Government was charged with "going into business in competition
Canada Restricts Tobacco Workers.
with private concerns." The Farm Board was declared to be a failure
In its Feb..24 issue the "Wall Street Journal" of Feb. 24
and was characterized as "an autocracy over the farmer."
Assailing syndicate feed firms, J. E.Sams,General Manager ofthe Blatch- carried the following (United Press) from Ottawa:
ford Calf Meal Co. of Waukegan, Ill., said:
"Organization of chain feed stores through government or State supervision is but one step in progression that is un-American in its connection,
un-American in its application and un-American in its ultimate conclusion.
Already it has brought about unfair discrimination calculated to further
embarrass existing business.
Charles D. Campbell, Potsdam (N. Y.) lawyer; who represented the
Federation in Washington before the marketing act was passed, declared
that "the Farm Board is working under cover and is not following the law as
laid down by Congress."
He declared that the Government in time would take over the co-operatives which it was aiding and then they would be a failure, "for the Government never made a success of any business which It ever entered."
"Legislators who will work for your interests must be elected in 1932."
he said, "and legislators playing for the farm bloc vote must be defeated."
C. 0. Lewis, President of the Lewis Grain Corp., defended the competitive system of grain marketing, declaring that it has "given the farmer
money, advice and everything he needs, but not enough money to speculate
with as the Federal Farm Board has done."
He continued:
"Farmers have the right to form co-operatives and go into your speculative business if they want to, but I deny that the Government has the right
to take the taxpayers' money and go into competition with private business.
"It breaks down the spirit of individualism upon which this country was
founded. Even Mr. Hoover in 1925, before he was President, testified
before a Legislative Committee that the people would protest the Government's entrance into business. Apparently since Mr. Hoover has become
President his Farm Board is a piece of politics.
"The $500.000,000 is a dissolving fund rather than a revolving fund.
This amount means every person in the country pays $4 each and in New
York State, which pays 30% of taxes, the rate is $14 per person."
Fred M. McIntyre of Potsdam, President of the Federation, said that
the law of supply and demand could not be "set aside by any co-operative
Organization, however strong it may be."
While United States immigration authorities are barring Canadian
workers in border communities, Canadian officials are reciprocating by
Imposing restrictions on entry of southern States tobacco field workers
to the great new tobacco field of Norfolk County, Ontario,
Many Southerners have entered Norfolk County during the past two
years to assist in cultivation of the tobacco which is the same as that grown
in Virginia and other southern States, but it is said that there are now
nearly enough Canadians competent to handle the crop and only a few
Americans are required.
Ottawa Bread Inquiry Clears Mill Industry—Combination for Baking Exists, but Not to Detriment of
Public, Says Report.
Investigation into the bread-baking industry of Canada
has not revealed the existence of a combination operating
to the detriment of the public, says a Canadian Presss account from Ottawa Feb. 16 to the New York "Times"
which added:
It has disclosed the existence of a combination resulting from the entry
of several large flour-milling companies into the bread-baking industry.
according to a report of the investigation issued by G. D. Robertson.
Minister of Labor, but "no conclusive evidence has been adduced to show
that this combination constitutes a combine within the meaning of the
Combines Investigation Act." On the other hand, the situation is such
as to "warrant continued Governmental interest" and if necessary, further
Governmental action, the report says.
The investigation was made by F. A. McGregor, registrar under the
Combines Investigation Act, following complaints received from various
cities, including Vancouver. Winnipeg and Halifax.
Four big flour-milling companies in Canada have acquired control over
96 bakeries operating from Nova Scotia to British Columbia, the report
states. These bakeries "now produce over a third of the bread sold in the
Dominion and over 90% of the bread sold in the localities In which they
operate."
Retail corapetition and the competition of small flour mills is said to
operate to keep prices within "reasonable limits."
Canadian Provinces Face Huge Liability Over Pool
Loan—Loss from 1929 Marketing Set at $22,455,983
—Assets of Co-operative Organization Held by
Governments as Security.
Canadian Press advices as follows from Winnipeg Feb. 20 Bread Prices Cut 20%—Great Atlantic & Pacific Acts
are taken from the Montreal "Gazette":
on Suggestion of United States Senate.
Total liability of the Prairie Governments on guarantees of bank advances
The following is from the New York "World" of Feb. 19:
to the wheat pools is approximately $22.455.983, on the basis of figures of
Feb. 16, Premier John Bracken announced in his budget speech to the
Manitoba Legislature to-night.
Manitoba's share of the liability he stated, is approximately $3,491,611.
"These amounts may be reduced or increased by the time the balance of the
1929 crop is disposed of," explained the Premier, "depending on whether
the price of grain rises above or sinks below the price on Feb. 1." His
estimates assumed the unsold grain would bring the price obtaining on
Feb. 16.
"Amount of the liability is somewhat less, to-day than it was some weeks
ago because of the higher price of grain at this date. It is now considered
that unless prices recede the assets of the Pool and the Manitoba Pool
Elevators, Ltd., will be sufficient to cover the amount of liability," he added.
"Implementing of the guarantee will probably result in no charge upon the
taxpayer•"
Alberta's liability on the Pool guarantees, as at Feb. 16, were announced
to-day in the Legislature at Edmonton by Boa. R. G. Reid, Provincial
Treasurer, as $6,284,558. Taking the announced prairie total liability, as
•estimated by Mr. Bracken, this would place Saskatchewan's liability at
$12,679,814.
On Feb. 10, when No. 1 Northern closed at 6334c., Hon. Howard McConnell, Provincial Treasurer, announced Saskatchewan's liability as $12,400,000. This approximate figure, presumably, has been incre2sed to the
estimate under the Bracken-Reid figures by reason of tie 5-cent drop in
wheat prices between Feb. 10 and 16.
Until the unsold stocks of the 1029 crop are disposed of, only approximate
liabilities can be calculated. What the unsold stocks are to-day ;s unknown,
and officials of the central selling agency of the wheat pools here refuse to
divulge the figures. Increases in market values would reduce the liability
of all governments.
An ultimate loss, however, is not feared by any of the Western governments. Assets of the pools are held as security, ranging in the millions of
dollars, and administration authorities agree with the statement of Hon.
Mr. Reid in the Alberta Legislature to-day—"We do not anticipate an
ultimate loss in view of the large paying possibilities of the Pool and of
elevator system.-
About $6,000,000, accordihg to estimates, will be saved by consumers of
the country in whole wheat bread purchases during the next year as the
result of a 20% cut in the price of the standard loaf announced yesterday
by the Great Atlantic & Pacific Tea Co. The statement says that the
company acted on the suggestion of the United States Senate committee
on food prices to meet the need for cheaper foods.
The whole wheat loaf in the stores of the Eastern division is reduced
from 10 to 8 cents, and other considerable and varying reductions were
made in the 14.000 stores of the company. The price reduction in whole
wheat bread brings about a lowering of the differential now existing
between whole wheat and white bread.
Bread Riot in Chicago.
Under date of Feb. 7 Associated Press from Chicago said:
Serious disorder broke out to-night when police attempted to disperse a
crowd of more than 500 persons in the Humboldt Park district.
The crowd had assembled to protest refusal of bakers to lower the price
Of bread from 10 to 6 cents a loaf.
Flour Demand Cut—Large Baking Companies Curtail
Takings.
A dispatch as follows from Minneapolis Feb. 21 appeared
in the New York "Evening Post":
Large baking companies are taking less flour than normally at this time
of year, due in part, it is believed, to unfavorable publicity about bread
prices. In some of the large consuming centers of the country housewives have felt that bread prices have not declined in line with wheat and
are curtailing their purchases as much as they can in protest.
Millers, however, are of the opinion that baking companies will find their
volume of sales t*.is year not Sr much reduced as present reports would
indicate.
1516
FINANCIAL CHRONICLE
[Vou 182.
As for the general domestic flour trade, millers are doing about as well
French wheat, although they have been selling flour at
as they expected this month. Mills in this territory
the same price
are booking up at as the millers who strictly adhere to the
law.
about 40% of capacity, and in the Southwest around
50%. In other
After
alleging
that
big orders for wheat have been placed in foreign
sections the orders run from 30 to 50%•
countries, especially in Argentina, the farmers' statement
There is no export business of consequence being done. Flour
asserts that
produc- these foreign purchases prevent the normal
sale of French wheat. They
tion for the week ended Feb. 14 was about 100,000 barrels
below the allege that the millers have avoided the law
by submitting declarations
corresponding week last year.
that there was no foreign wheat in the mills and therefore
they were not
subject to the percentage law.
Decisions reached at the conference are expected to have an important
First European Grain Parley Ends Without Gain—Only bearing on the amount of wheat France will buy from
the United States,
Step at Paris Is an Act by Some Nations Favoring Canada and Argentina, whose grain the French millers need because it is
richer in gluten.
Danubian Surplus Disposal—No Machinery Is Set Up—
Nations to be represented at the meeting include all European members
Second Grain Conference Held.
of the League of Nations except Portugal, Albania and Lithuania,
which
are not
wheat-producing States. M. Briand will welcome the
According to a Paris Cablegram to the New York delegatesimportant
and then withdraw to permit technical discussions.
"Times" the European grain conference, which brought
together the delegates of twenty-four nations, ended its Banks Ask More Margin on
Wheat—Kansas City Units
three-day session on Feb. 25 with the realization that its
Demand 20 Cents a Bushel—Most Chicago Institutions.
immediate objective was about as far away as it was when
Require10%.
the meeting began. The cablegram further said:
From the "Wall Street Journal" of yesterday (Feb. 27).
The only concrete accomplishment—and this was more in the nature
we take the following from Kansas City:
of a "moral gesture"—was the formal signing by sixteen participants
of
Local banks are demanding margin of 20 cents a bushel on all wheat
an act favoring the disposal of the surplus stocks of 1930 Danubian grain.
The setting up of the all-important machinery for buying and selling loans on the basis of May quotations. Heretofore marginal requirements
were 10% of the market price. The change has been made due to the
these cereals, which must take place before the problem even begins
to
approach a solution, was left to the initiative of the individual members. artificial character of May prices through pegging by the Federal Farm
Board.
Upon the less tangible though equally significant question of giving
life to Aristide Briand's dream of a European federation the conference
The same paper carried the following from Chicago yesregistered fresh enthusiasm, although it must be added that when
the
delegates got down to business their deliberations were at once a striking terday:
illustration of the formidable practical obstacles in the way of
According to seports current in grain trade one of the local banks
such unity.
will loan only 60 cents a bushel on cash wheat at the present time, but
Express Desire to Help.
others continue to demand only a 10% margin. There has been no
Good-will was not lacking, however, and most of the delegates
expressed increase in the percentage demanded on loans on cash wheat in store.
a sincere desire to help the five Eastern States—Poland, Rumania, HungOn the basis of 81% cents for old May, loans of around 73 cents a
ary, Bulgaria and Yugoslavia—in their present grave situation, provided, bushel could be secured on wheat. Some weeks ago
cooperatives and
of course, that such stumbling blocks as price, quality and Russian com- local commission houses entered into an agreement whereby
the former
petition could be overcome. This earnest desire to help was characterized advanced 5 cents a bushel on speculative trade margins
paid to the
by Andre Francois-Poncet of France, the President of the conference, as clearing house and put up an additional 10 cents a bushel in escrow
with
a development of great importance to the movement for European union. the Federal Reserve Bank to further protect commission houses.
When this has been said everything favorable to the conference
Leaders in the grain trade say there is nothing unusual in the fact
has been
noted. On the other hand, the meetings Welt eye-openers to many
who, that one of the local banks is offering to loan only 60 cents a bushel on
like M. Briand, had hoped that upon the common ground of European cash wheat, regarding it as preparing for a readjustment in the
loan
agricultural and economic depression a real foundation for
union could value to the basis of the new crop. May wheat here is quoted at about
be laid.
17 cents a bushel over the July, the latter representing the new crop,
It is impossible to say at this stage of the situation that the
current and calls attention to the fact that the 60-cent loan figure would be about
crisis will not force Europe to attempt some form of unity, but
if the equal to a 90% basis on the July future. It is generally felt that there
conference which closed this afternoon may be taken as an indication, will be a gradual change from an old to a new crop
basis on the part
hardheaded business considerations will prove to be a real stumbling
block. of banks in all of the leading markets.
Russia Not Mentioned.
The fact that the conference carefully refrained from mentioning
the Report of President Hoover's Advisory Committee on
word "Russia" did not convince any close observer that Russian exportaUnemployment Statistics—Urges Study of Techtion of wheat must not dominate all attempts to solve the Eastern European
nological Unemployment—Additional Indexes Recgrain crisis.
With Russia now supplying 25% of Europe's import
requirements with wheat described by French experts as of much higher
ommended—Utilization of Federal Reserve Board's
quality and lower price than that sold by the Danubian ,States, it is not
Results and Continuance of the Decennial Census
difficult to understand why even the most kindly disposed nations made
Favored.
the reservation that their purchase of Danube wheat depended upon price
and quality.
The report of the President's Advisory Committee on
As a matter of fact, not a little feeling was provoked when it was
discovered that the Danubian wheat sellers were trying to dispose of their Employment Statistics, submitted to President Hoover,
excess at a price above the world price, even though the latter was based containing recommendations for the improvement of the
on a better grade of grain. It was also disclosed that, contrary to pub- methods
of measuring employment and unemployment as
lished estimates, the Danubian surplus would not be more than
well as a thorough study of the "technological unemploy10,000,000 metric quintals.
It will thus be seen that the individual efforts of the various States ment" problem, was made public at the Department of
upon. which the sale of surplus stocks now depends do not begin in a very
favorable atmosphere. Unless the Danubian sellers materially lower Labor, Feb. 13. The Committee making the report was
their prices it is a fair guess that the importers of wheat, being expe- appointed by the President to study the best and most
rienced business men, will stick to their old sources—Canada, Argentina efficient methods of carrying out
the purposes of the Act
and the United States—or, what is likely, will take advantage of the same
quality but lower-priced Russian product, and the hard times would be a (Public No. 537) of July 7 1930, which extends the volume
big factor in taking the latter course.
of employment statistical material compiled by the Bureau
In any event, the results of these efforts will be communicated to the
of
Labor Statistics. The "United States Daily," from which
forthcoming meeting of the commission of inquiry for a European union.
Meanwhile a second grain conference, with eleven nations in attendance, we quote, also has the following to say:
will open at the Foreign Office tomorrow morning. This gathering will
Reserve Data Favored.
tackle the problem of next year's surplus and the more vital question of
Direct utilization of the present results obtained by the Federal Reserve
finding a huge sum of money with which to finance the bankrupt farmers
Board's Division of Research and Statistics for making necessary
testa and
of Eastern Europe. An outline of the proposed new International farm
credit bank has already been given in these messages, and it is upon that adjustments of indexes for manufacturing industries is recommended by the
Committee, which also urges the addition of employment indexes for
side of the matter that the real issue turns.
construction and other non-manufacturing industries.
It is interesting to note that among the eleven European nations conMeasurement of part-time employment through data on man-hours, with
voked for the second conference are to be found almost all those caable
of supplying capital for the projected bank. Those invited are Great first efforts confined to manufacturing industries and railroad transportaBritain, Germany, Austria, Belgium, Estonia, France, Italy, Norway, tion, and collection of data on normal week-hours are further recommended.
For snore satisfactory and reliable measurement of unemployment
Switzerland, Czechoslovakia and Yugoslavia.
in the
The list of nations which signed today's act with regard to the 1930 Suture, the Committee urges prompt extension of employment statistics
as
recommended,
continuance
of
and the
the decennial census of unemDanubian grain surplus was notable for the absence of the following
importing nations: Britain, the Netherlands, Belgium. Denmark, Spain. ployment.
Collection of specific data and the prosecution of specific studies,
the Irish Free State and Sweden. Their representatives explained that
in
regard to the technological unemployment problem, should be a
they must refer the matter to their respective governments.
continuing
Those signing were France, Germany, Acstria, Bulgaria, Estonia, Fin- part of the Federal Government's responsibility, it recommends. Further
land, Greece, Hungary, Italy, Latvia, Lithuania, Poland, Rumania, data, the Committee urges, such as are necessary for continuous and
Switzerland, Czechoslovakia and Yugoslavia. Only the latter six are big current measurement of industrial productivity, should also be collected.
wheat importers, while in the non-adhering column are several of the
$50,000 Sum Sought.
largest importing nations of the world, notably Britain.
For the carrying out of its recommendations, the Committee says that
$200,000
additional be made available in the budget of the next fiscal year
Under date of Feb. 22 Associated Press accounts from
to the United States Bureau of Labor Statistics, $50,000 of
this sum to be
Paris said:
made available at once.
The meeting which starts tomorrow, will be the first technical European
The letter of transmittal, dated Feb. 9, addressed to President
Hoover.
conference convoked to show the practical value of Aristide Briand's follows in
full text:
proposed United States of Europe. It was called after recent discussions
"Sir: I have the honor to submit herewith the report of the Advisory
at Geneva.
Committee on Employment Statistics, appointed by you on Aug. 12 1930.
On the eve of the coming discussions, which will be held in secret, it This
Committee was asked to make recommendations for the improvement
is charged that French millers have been importing 20% of foreign wheat of
the methods of measuring employment and unemployment It was also
.
for making flour instead of the 10% authorized by the government.
asked to consider the subject of 'technological unemployment and
to make
'
A group of farmers insists that certain millers are buying from
30 to suggestions concerning the character of study or studies of
Ms subject
50% of their wheat in foreign countries, which is less expensive
than which It might be wise and helpful for the Government to undertake.
FEB. 28 1931.]
FINANCIAL CHRONICLE
1517
institute investigations and make reports to same central
"The proposals of the Committee with respect to the methods of measur- with power to
ing employment are contained in Part I of this report. Its proposals con- authority.
II.
9. An extension of the policy of co-operation with responsible outside
cerning the subject of technological unemployment are contained in Part
to be encouraged both in collection and analysis.
to
agencies
ons
essential
recommendati
e
administrativ
other
and
budgetary
Certain
in
an effective carrying out of these recommendations are contained
Part III.
Pennsylvania Asked to Consider Plan for UnemployActs for Committee.
ment Fund—State Committee Submits Recomat
city
the
"In view of the absence of members of the Committee from
mendations to Governor for Alleviation of Workers'
the time of submission, I an empowered to submit these recommendations
in their name.
Condition.
(Signed) "JOSEPH IL WILLITS, Chairman.
Although unable to agree on specific measures for the
on Employment Statistics: W. N.
Committee
"Members, Advisory
on of workers' incomes, the Pennsylvania State
stabilizati
John P.
Doak, ex officio; R. P. Lamont, ex officio; Harold F. Browne,
Stewart, Committee on Unemployment has asked Governor Gifford
Frey, P. W. Litchfield, Noel Sargent, W. N. Steuart, Ethelbert
Arthur 0. Wharton, and Leo Wolman."
Pinchot and the Legislature to give "serious consideration"
The Committee's announcement follows in full text:
to a report of its subcommittee on the subject in which a
1930,
7
requires
July
of
Act
the
as
known
"The Act, Public No. 537,
and
report
publish
collate,
collect,
shall
of mandatory unemployment insurance through a
Statistics
form
Labor
of
Bureau
that the
at least once each month full and complete statistios of the volume of and
is recommended. Attention also was called to
fund
State
changes in employment, as indicated by the number of persons employed,
of voluntary action on the part of employers.
g,
in
the
possibility
manufacturin
employment
the total wages paid and the total hours of
comn,
lumber,
transportatio
agriculture,
mining, building construction,
The "United States Daily," in making this known in Harrismunication, and other public utilities, the retail and wholesale trade, and
burg advices, Feb. 13, went on to say:
such other industries as the Secretary of Labor may deem it in the public
t include effmts
Other recommendations for alleviation of unemploymen
interest to include, such statistics to be reported by States, Federal Reserve
and employment,
to stimulate private employers to stabilize production
employment
districts, and such smaller geographical subdivisions as the Secretary may
public
of
improvement
a detailed public works program,
prescribe.
agencies, extension of
offices, better regulation of private employment
functioning of county relief
Appointed by President.
certain educational facilities, and vigorous
"The Committee making the attached report was appointed by the committees.
Transmitted Without Comment.
President to study the best and most efficient methods of carrying out the
was transmitted to the
The report of the Unemployment Committee
purposes of the act extending the volume of employment statistical material
comment.
without
Pinchot
Governor
Statistics.
by
Labor
10
of
Bureau
Feb.
Legislature
gathered by the
stabilization of wage earners'
In the report of the subcommittee on
"President Hoover also requested the Committee to study and recomunemployment insurtwo
mend methods for the ascertainment of technological unemployment in incomes, agreed to by a majority of the members,
.
the United States, its extent, results, and whatever could be ascertained ance measures are presented for consideration
for Labor Legislation," the
along the line of methods of readjustment and industrial stabilization.
"The first is that prepared by the Association
to contribute, and
"In addition to the work put upon this report by the Members of the subcommittee stated, "in which the worker is not asked
the contributions are
Committee the assistance of nearly a score of the best known economists another modeled upon the so-called Ohio plan in which
in preference to
bills
these
and statisticians in the United States was secured to go over the whole joint. While not specifically endorsing one of
belief that the differences between
subject and make recommendations to the Committee."
the other, we with to state our firm
points of agreement."
The Committee's summary of its recommendations follows in full text:
them are far less important than the
1. Improvement of the indexes of employment:
Objections to Insurance.
a. Manufacturing industries. The direct utilization of the present results
of those opposed to mandatory
The subcommittee presented five objections
obtained by the Federal Reserve Board's Division of Research and Statistics
The
insurance and also its arguments in answer to them.
for making certain necessary tests and adjustments of indexes; the tabula- unemployment
are:
named
and
for
States.
some
entire
objections
tion of employment data for some leading cities
the unemployed will cause them not
1. It is feared that the benefits to
idle and that thus the result
Additional Indices Urged.
to seek employment but instead to remain
to make the situation worse rather than
b. Non-manufacturing industries. The addition of employment indexes for of any such measure would be
building and other construction activities; shipping and stevedoring, better.
is established there will
2. It is also feared that once such a system
garages and automobile service stations, and for certain of the more
of benefit extended and for the
period
the
have
as
investment
such
bankers
to
class,
collar"
pressure
"white
be constant
important groups in the
and title public to pay a large share of the expense.
and brokers; commercial banks and trust companies; mortgage
system may "freeze" labor in decay3. It is further feared that such a
companies; advertising agencies; restaurants, &c.
to
where the desirable thing would be for them
c. The census of manufacturers as a source of employment statistics ing trades and localities
with the collection of data undertaken on an annual basis, the inclusion of seek work elsewhere.
industry in Pennsylvania
4. That the imposition of such burden upon
data on the average number of wage earners employed by size groups, also
disadvantage in comparison with similar
monthly employment statistics of wage earners according to (1) States, would place it at a competitive
of manufactures by Industries in other States.
(2) leading industries, (3) leading States ; statistics
advantage of the payment of
g
5. That many employers mould take
counties, by industries; hours of labor in manufacturin industries; statisoff who, if no other support were
unemployment insurance to lay men
tics of automobile repair shops, t..c.
on man- available, would otherwise be retained.
2. The measurement of part-time employment through data
objection is that ample safeand
The subcommittee's answer to the first
hours, with first efforts to be confined to manufacturing industries
be provided through waiting
could
idleness
employees;
salaried
from
voluntary
earners
wage
guards
against
railroad transportation, separating
benefits only to those laid off and to those
collection of data on normal work week hours; consideratio nof desira- periods, limited payments, and
of seeking work.
bility of extending work on man-hour data for periodic adjustment
objections the subcommittee
With respect to the second and third
figures; explicit questions on schedule to secure the needed data.
of extended benefits can be
admitted there are difficulties. The issue
can be prevented
Speeding Up of Reports.
faced when it arises, it said, while "freezing" of labor
in
3. The Bureau of Labor Statistics and Statistical Division of the Inter- by requiring the unemployed after a reasonable time to accept work
the
hastening
State Commerce Commission might confer with a view to
other industries.
a serious burden upon
monthly publication on the employment and wages paid to Glass I railroad
Competitive disadvantage was not found to be
employees, so that they may be included monthly with the present series States which pioneered in the field of workmen's compensation legislation,
A system of
of the Bureau of Labor Statistics.
the subcommittee declared relative to the fourth objection.
4. For the more satisfactory and reliable measurement of unemploy- Federal grants-in-aid to States adopting unemployment insurance measures
was contended.
ment in the future:
would stimulate other States to enact similar laws, it
to lay off workers
a. The prompt extension of employment statistics in the direction and
Use of an unemployment insurance plan by employers
, through adequate
above.
subcommittee
In the manner indicated
checked, in the opinion of the
be
could
rates also would retard any
b. The continuance of the decennial census of unemployment.
administrative procedure. Higher premium
c. Serious consideration of the desirability of a quinquennial census of such tendency which, according to the subcommittee, is not certain
employment.
to exist.
Committee on Unemployment,
d. The immediate preparation by the Bureau of the Census of census
A summary of recommendations of the
unemployment insurance,
monographs on:
recommendation with regard to
its
including
(1) Occupational changes; (2) unemployment; (3) age changes of follows in full text:
American workers; (4) manthours; (6) changes in employment revealed
Specific Action.
Summary of Recommendations for
by the census of manufacturers ; (6) the relation between value of output,
action by the State of PennBringing our recommendations for specific
value added by manufacture, and wages; (7) the distribution of employees
as follows:
sylvania together, we may summarize them
by size of establishment; (8) employment in distributive trades.
Department of Labor and
I. Full efforts on the part of the State
to stabilize their production and
employers
private
Continuous Study Advised.
stimulate
to
Industry
The suggested means of accomplish5. In regard to technological unemployment, the collection of funda- employment as completely as possible.
(b) consulting services of a properly
mental data and the prosecution of specific studies, should be a continuing ing this to be by (a) conference,
man.
part of the responsibility of the Federal Government, and especially of the qualified engineer or business
Pennsylvania which will include:
II. A public works program for
United States Bureau of Labor Statistics.
building program for State institu(1) The immediate preparation of a
a. Basic data. The collection of such further basic data by appropriate
This bill should be passed in the
$10,000,000.
y
and
current
continuous
approximatel
are
as
for
of
the
necessary
measurement of tions
agencies
started as soon as possible with the
early days of the session and work
industrial productivity.
concentrated in 1931 rather than in 1932.
b. Special studies. Where warranted by basic facts collected, special bulk of construction to be
the general fund to the motor
(2) The transfer of $10,000,000 from
intensive survey of particular industries are to be made for the purpose of
of highway construction.
determining the exact processes or machinery responsible for the increased license fund and immediate pushing
on State work should pay the
(3) The requirement that contractors
productivity and the type of labor affected by it.
adequate inspection and penalties for violation.
0. Two hundred thousand dollars additional to be made available in going rate of wages with
employment to be given to residents of Pennsylvania.
budget of next fiscial year to the United States Bureau of Labor Statistics Preference in such
ons.
the
above
out
recommendati
carrying
for
More Flexible Bonding Power for Emergencies.
7. Fifty thousand dollars of the above to be made available at once.
(4) The submission of a constitutional amendment giving to the local
Co-ordination of Services.
governments and the State under proper safeguards more flexible bonding
works when an unemployment emergency is declared by a
8. More effective co-ordination of the various statistical services of the power for public
majority of a committee composed of the Governor, State Treasurer, and
Government to be undertaken by the appointment of a permanent co-ordiInternal Affairs.
nating committee composed of the heads of the various statistical services Secretary of
1518
FINANCIAL CHRONICLE
(5) The creation of a long-range planning
board for public work operating in terms of six-year programs.
III. The improvement of the public
employment offices of the State by:
(1) The purging of unfit members of
the staff and their replacement
by qualified persons with educational training
and previous employment
and trade experience.
(2) The building up of strong co-operating
committees for each of the
offices which would have real powers in
helping to select the local superintendents and in guiding local policies and would be
somewhat comparable
to boards of directors.
(3) The more strategic location of the offices
themselves.
Steps to Improve Employment Service.
(4) A thorough attempt to follow up the workers
who have been placed
in order to improve the quality of service given.
(5) A much greater degree of solicitation of employers
in order to obtain
more requisitions for labor.
(6) An energetic system of stimulating the work
of the local offices
through the work of a field agent for the State and conferences
of the
local superintendents.
(7) A better grading of the staff of the offices and the
establishment
of salary scales and promotional systems.
(8) The establishment of an adequate system of clearance.
(9) The establishment of more uniform records and of a
more accurate
system of determining placements.
(10) The allocation of offices to meet the public needs .
Further Regulation of Private Agencies.
(11) The attempt to secure financial aid from private sources in setting
up model employment agencies in Philadelphia, Pittsburgh and possibly
elsewhere.
(12) The granting of increased funds for the public offices once they
have been improved. The recommended sum for each year of
the coming
biennium would be a total of $200,000 or $100,000 more than is
now
being expended.
IV. The better regulation of the private employment agencies.
We
favor the enactment of legislation which embodies the following
features:
(1) Licensing only those private employment agencies for
which there
is a public need.
(2) Enlarging the definition of private agencies so as to
include those
who solicit jobs by mail.
(3) Raising the license fees to $200 a year and increasing
the bonds
to $5,000.
(4) Providing that all licenses shall expire on a given
date so that the
Department of Labor and Industry will have a chance to
survey the whole
situation.
(5) Giving to the Department of Labor and Industry the
power to revoke
for cause.
(6) Making the reasons for revoking a license more explicit.
(7) Prohibiting the imposition of a service or registration
fee for which
no service is rendered.
(8) Requiring each private office to make a monthly
report on the
numbers placed and total fees received.
We also believe that no agency should charge a fee for placing
labor
on public work.
a license
Extension of Facilities for Education.
V. Education.
(1) A stricter regulation of the conditions under which
employment
certificates are issued.
(2) Greater flexibility in high school and vocational training.
(3) The development of forman training classes and
appointment of
district directors of industrial education.
(4) The encouragement to communities to put their part-time
continuation schools upon a half-time basis with an increase of State aid.
(6) The establishment of special schools in mining districts to
prepare
workers more effectively for mining and other industries.
(6) The establishment of extension classes for the unemployed.
(7) An increase in the program of adult education.
(8) The distribution of a State equalization fund of
approximately
$2,000,000 for vocational and extension classes in the mining
and industrial,
and rural schools, and distressed school districts.
Limitation of Training of Teachers to Demand.
(9) Attempts to limit number of teachers trained in proportion
to the
demand.
(10) Further research in certain fields such as Negro education
and the
curriculum.
VI. Relief.
(1) The vigorous functioning of committees in every county of the
State
to stimulate aid to the needy unemployed.
(2) The ultimate creation of integrated county welfare units.
VII. Unemployment reserves and insurance against unemployment.
Measures for the stabilization of workers' incomes are essential to our
healthy economic life and, although we are not able to agree on the
specific measures through which this should be effected, we commend to
your serious consideration and to that of our legislators (if in your judgment it should be submitted to them) the able report of our subcommittee
• on this subject,, printed herewith; and we call attention to a third possibility of voluntary action by employers either as individuals or groups or
in co-operation with organizations of employees.
(vol.. 132.
Here is a recapitulation of the relief measures already
adopted and
the sums appropriated for immedate use:
Emergency measures—
Public works construction, $116,000,000.
Drouth loans, $65,000,000.
Medical supplies, $2,000,000.
Flood loans to Southern States, $2,500,000.
Funds carried in regular supplies bills—
Construction, first deficiency bill, $20,000,000.
Road construction, agricultural bill, $125,000,000.
Reclamation projects, &c., Interior bill, $34,000,000.
Public buildings, Treasury bill, $61,000,000.
Rivers and harbors, War Department bill, $60,000,000.
Military post construction, War Department bill, $20,000,001.
Idleness Fund Plan Adopted in Rochester—Fourteen Concerns Agree to Set Aside 2% of Payroll to Build
Reserve.
Under date of Feb. 17 a Rochester (N. Y.) dispatch to
the New York "Times" said:
Adoption of an unemployment benefit plan, aimed to supplement in the
future the record of Rochester industry in stabilization and in emergency
measures to cope with present unemployment, was announced by fourteen
Rochester manufacturing and utility companies today through James E.
Gleason, Chairman of the Industrial Management Council of the Rochester
Chamber of Commerce. Under the plan each company will begin immediately to set up a company unemployment reserve fund on a schedule
permitting to idle employes payments on or after Jan. 1, 1933.
These companies employ 26,000 persons in normal times. They vary
greatly in size, product and field of distribut;on. One has approximately
forty-five employes; the largest about 13,000.
So far as known they are the first group of companies in one city, under
separate management and control, to draft and adopt an unemployment
benefit plan. The Eastman Kodak Company heads the list of enterprises
which so far have adopted the plan.
Under the plan each company will accumulate its unemployment benefit
fund by setting aside 2% of its payroll annually, dependent upon its
experience and degree of stabilization, until the fund reaches a maximum
of from 5% to 10% of the payroll.
All employes with service of one year and over and receiving less than
$50 a week will be elegible to receive unemployment benefits. The
benefits
will be 60% of the normal pay, with a minimum of $22.50 a
week, the
period of benefits varying from six weeks for employes with
one year's
service to thirteen weeks for employes of five years' service and over.
U. S. Government to Provide Work for 450,000 Within
30 Days.
In its efforts to ease the unemployment situation by
acceleration of public construction activities, President
Hoover said on Feb. 20, according to a Washington dispatch to the New York "Times" that the Government
would employ within thirty days directly or indirectly
450,000 persons, an increase of 350,000 since the employment program began several months ago. The dispatch
added:
The fact was cited by the President that of the $700,000,000 carried
in supply bills now before Congress to be used for construction purposes
in the fiscal year 1932 about $500,000,000 could be made available immediately to meet the unemployment problem.
Moore, Hull & Evans, Inc., Los Angeles Brokerage
Firm, Suspended from Los Angeles Stock and
Curb Exchanges.
That Governors of the Los Angeles Stock xchange have
announced the indefinite suspension of Moore, Hull & Evans,
Inc.. of Los Angeles, in accordance with Article 16 of the
constitution and by-laws of the exchange, was reported in
Los Angeles advices on Feb. 19 to the "Wall Street Journal,"
which went on to say:
Governors of the Los Angeles Curb Exchange took similar
action in
accordance with Section 2 Article 11 of the constitution and
by-laws of
the Curb Exchange.
Article 16 of the Los Angeles Stock Exchange and Article
11 Section 2
of the Los Angeles Curb Exchange under the terms of which the
firm was
suspended from both institutions, provide for suspension when members
are
unable to meet their obligations.
Moore, Hull & Evans, Inc., is a Delaware Corp. A
stockholders' meeting
will be held at which an attempt will be made to work
out
situation.
Robert G. Moore is President, Louis J. Evans, Vice-Presidenthe
t and George
B. IIull, Secretary and Treasurer.
Plans Approved for Establishment by New York Produce
Exchange of Futures Market for Trading in Canadian
Wheat.
Members of the grain trade of the New York Produce
Exchange, at a meeting on Feb. 17, approved the plan presented by a special committee for the establishment on the
Exchange of a new futures market to trade in Canadian
To date more than half a billion dollars has been appropriated for all bonded wheat, with delivery at Buffalo.
On Feb. 19, the
manner of relief to the unemployed and drouth sufferers. All of it was board
of managers of the Produce Exchange ratified the
made available for immediate use.
All but $185,000,000 was provided by enactment of regular annual project. In announcing this action, H. L. Bodman, Presiappropriation bills, which also carried several billions to carry on the dent of the Exchange, said that
plans for the market
normal operations of the government for the next fiscal year. The latter
which had been prepared by a special committee of the
funds do not become available until July 1.
In addition to the half-billion dollars appropriated for immediate use, grain trade of the exchange were sufficiently advanced so
$200,000,000 for building is carried in
supply bills for that purpose after that trading could be inaugurated early next month. Mr.
July 1.
Bodman said:
More Than Half Billion Dollars Appropriated in U. S. for
Unemployed and Drouth Relief.
It was stated in Associated Press dispatches from Washington Feb. 21 that this short session of Congress will go
down in history as one of the most financially provident in
any of the nation's long list of emergencies. The dispatches continued:
FEB. 28 1931.]
FINANCIAL CHRONICLE
1519
of its
"The board of managers of the Exchange regards the extension
importance.
facilities through this new market as being of major economic
be
The market will be free and open with trading unrestricted and will
safeguarded by all proper recognized Exchange supervision and regulation for the protection of both buyer and seller. It will not be subject
to any
to any Canadian domination or regulation nor will it be subject
interference by or participation in by the American Farm Board.
this
in
market
single
"As the situation stands today, there is not a
country which reflects free and unrestricted trading in wheat, due to the
stabilization operation of the American Farm Board in pegging the price
of wheat on all principal American exchanges. The new pit will supply
such a market.
"The contract grades which are proposed for delivery on this market
represent only the highest grades of wheat raised in Canada—grades that
normally sell at a premium in the world's markets. Canada's surplus for
export runs between 300,000,000 and 450,000,000 bushels and millions of
bushels of this wheat are regularly carried in storage in bond at Buffalo.
The new market will provide a natural hedge for wheat in this position,
the only hedge now available being in Winnipeg. The market in New
York will furnish perfect and normal hedge for all of this surplus which
moves through Eastern outlets, or for the major part of it."
On Dec. 31 the accepting banks reporting to the Council held in their
own bills and the purchased bills of other banks a total of $371,452,274.
whereas on Jan. 31 this total had increased $199,950,662 to a new high of
$571,402,936.
On the latter date the Federal Reserve banks held for their own account
only $120,241,000 and for the account of foreign correspondents $442,435.000. On Feb. 11 the Reserve System's own account holdings were further
reduced to $87,739,000.
TOTAL OF BANKERS' DOLLAR ACCEPTANCES OUTSTANDING FOR
ENTIRE COUNTRY, BY FEDERAL RESERVE DISTRICTS.
Jan. 311930.
Dee. 31 1930.
Jan. 31 1931.
Fed. Res, Dist,
5165.615.615
3144,846.528
$132,775,237
1
1,241.357,006
1,153,879.416
1,141.684,950
2
25,910,044
24.588.842
25,274,052
3
29,490.118
26.385,913
25,938,390
4
12,558,812
10.366.544
10.649,355
5
16.143,843
20,118,316
16,733,283
6
102.835,033
88.793.504
83,032.420
7
2.818.203
3,518,351
2,612,766
8
0,436,642
5,507,103
6,242,909
9
1,769.663
600,000
10
8,369.354
6,573,299
6,074,846
11
76.489,558
71,388,385
68,566,675
12
The plan approved embodies in detail the rules and regulations for the new market, including safeguards to insure
a free and open market and unrestricted trading. The
special committee which devised the plan was composed of
Axel Hansen, Chairman; Moses Cohen, Charles B. Crofton,
Charles Griffith, Julius Isaac, L. C. Isbister, William C.
Mott, Robert Straub, Fred Teller and Charles Watt. A
previous item regarding the plan appeared in our issue of
Jan. 24, page 587.
51,692,793,891
81,555,966,201
51,520,189,883
Deer. $35,776,318 Decr.S172,604,008
CREDIT.
OF
NATURE
TO
ACCORDING
CLASSIFIED
Jan. 31 1930.
Dec. 311930.
Jan. 31 1931.
5336,213.059
5220,971.560
3213,999,903
Imports
509.818,905
415,140,975
400.129,474
Exports
20.064.014
34,725.531
34,897,448
shipments
Domestic
288.994,766
271,483.592
257,493,070
Domestic warehouse credits
07,187.838
52,201,951
65,041,970
Dollar exchange
Based on goods stored In or
shipped between foreign
470.515.309
561,442,562
548,628,018
countries
AVERAGE MARKET QUOTATIONS ON PRIME BANKERS' ACCEPTANCES
February 14
January 16
Dealers' Selling
Dealers' Buying Rate.
Days.
1.413
1.533
30
1.413
1.538
60
1.143
1.538
90
1.538
1.663
120
1.663
1.788
150
1.663
1.788
180
Grand total
Customers and Creditors of Lorenzo E. Anderson & Co.,
St. Louis, Notified Reorganization Plan Can Be
Effected.
Howard V. Stephens and W. C. Sipple, Jr., members of
the reorganization committee to supervise the liquidation Bill in New York Legislature Would Limit Holdings of Stocks
of assets of Lorenzo E. Anderson & Co. of St. Louis, which
—Superintendent Broderick Measure Sets 25% of
was suspended from the New York Stock Exchange on
and Surplus for Trust Companies.
Capital
and
customers
Jan. 24, have issued the following notice to
on investments by trust companies
restriction
further
A
creditors of the firm, according to St. Louis advices on
is provided for in a bill introstocks
in
State
in
New
York
Journal":
Feb. 25 to the "Wall Street
State Legislature at the reof
the
houses
both
sufficient
in
that
a
duced
announces
"The reorganization Committee herewith
ph A. Broderick.
number of creditors and customers of Lorenzo E. Anderson & Co. have quest of Superintendent of Banks Jneassented to the reorganization plan covered by the agreement of Feb. 11 The bill is another portion of the program of Mr. Brodto make the carrying out of said plan effective, and subject to the approval
up the banking law in the State, said the
of the Circuit Court of St. Louis, the plan of reorganization is declared erick to tighten
which
to be in effect. Substance of the plan referred to is the formation of a New York "Journal of Commerce" of Feb. 25,from
reorganization company for the orderly liquidation of the Anderson we quote further as follows:
capital of $2,000,000, in cash volunaffairs. The new company will have
tarily subscribed by the largest creditors, conditional on a majority of
creditors assenting to the transfer of assets and liabilities of the Anderson
company to the reorganization company and the dismissal of all receivership
and bankruptcy proceedings. Also, the substitution of the reorganization
company for the Anderson concern for the settlement of all claims."
The suspension of the firm by the New York Stock Exchange was noted in the "Chronicle" of Jan. 24, page 589,
and its affairs referred to in our issue of Feb. 7, page 951.
Acceptance Volume Declines $35,776,318—Seasonal
Reduction Leaves Total Jan. 31 at $1,520,189,883.
The outstanding volume of bankers' acceptances experienced very little change, either in total or classification,
during January, as is shown in the monthly survey report
of the American Acceptance Council as of Jan. 81. Robert
H. Bean, Executive Secretary of the American Acceptance
Council, New York, further reports as follows under date of
Feb. 17:
Mr. Bean's survey follows:
The reduction of $35,776,318 for the first month of the year followed a
drop of $15,461,473 in December, showing a change of only $51,000,000
since Nov. 30.
On Jan. 31 the total volume was $1,520,189,883, which, compared with
$1.692,793,891 In January 1930, shows the present amount to be $172,604,008 below the record totals of a year ago.
The classification report for this month shows a very even contraction
in the four major uses for acceptance credits, thus emphasizing the forecast that the acceptance business is proceeding normally to its season of a
lower volume each month during the first half of the year.
Exports credits declined $15,011,501, warehouse credits went off $13,990,522 and bills against goods stored in or shipped between foreign countries were less by $12,814,544, while import bills with the smallest reduction declined $6,971,687.
The only increase of any importance was in the volume of bills to create
dollar exchange, which gained $12,840.019.
Domestic shipment credits remained practically unchanged in volume
during the month.
Geographically also the reduction was remarkably even all over the
country, the Boston Federal Reserve District reporting a reduction of
$12,071,291, the New York Federal Reserve District off $12.194,466.
Chicago off $5,761,084 and San Francisco off $2,821,710.
January was a month of unusual activity In the bill market with a large
volume of bills passing quickly through dealers' hands to banks and others
willing to absorb every bill in the market.
Rates changed rapidly downward from 2@1'14% on Jan. 2 to I @I 3,6%
on Feb. 6. In this
on Jan. 31, and to 1%,@1%%, the lowest on record,
period of five weeks there were seven changes, but the constant shifting
of acceptance quotations had apparently no effect on the buying banks,
nor did the extremely low rates serve to bring out the strong supply of bills
held by the accepting banks.
except
At the present time State banks are not allowed to hold stocks,
for such holdings as shares in safe deposit companies or the Federal Rebroader
much
serve Bank. Trust companies, on the other hand, have had
can
powers in this respect in New York, and under the present law they
invest their funds in shares, subject to the proviso that not more than 10%
of the capital and surplus of a trust company can be invested in the stock
of one corporation.
The amendment proposed now limits aggregate holdings of stocks and
convertible bonds by trust companies to 25% of the capital and surplus,
with exceptions made of safe deposit companies, foreign banking corporations, etc. This limitation reduces within considerably narrower limits
than now prevail the ability of the trust company to place its own funds
in shares. At the same time, it is expected to further hamper to an extent
the operations of security affiliates of certain trust companies, since in
some cases trust companies hold the shares of security affiliates directly,
and by investing substantial sums in this way the balance which can be
placed in other stocks within the 25% aggregate set in the law will be
further reduced.
of
It is pointed out here that this new amendment tends in the direction
State or
reducing the advantages of the trust company charter over the
owning
national bank charter for institutions in this State, as the stock
there
power has been an important one in several cases. Bankers say that
company
trust
curtail
similarly
is no tendency evident in other States to
powers.
Bill in New York Legislature Proposed by Superintendent
Broderick Permitting Merger of Weakened Bank Without Approval of Stockholders.
The following is from the New York "Journal of Commerce" of Feb, 26:
condition
bank whose
The proposed bill under which the directors of a
the approval
is unsound may merge it with another institution without
Legislature at the
of the stockholders has been introduced into the State
A. Broderick. Such a
request of the Superintendent of Banks, Joseph
would become possible
merger or the sale of the assets of the weak bank
banking laws, would
where the Banking Superintendent, under existing
be justified in taking possession of the institution.
Banks of the State
of
Recent reports have indicated that the Committee
many amendments to the
Legislature may question bankers upon the
Banking Department. The
banking laws introduced at the request of the
without first instructing
members of the committee do not wish to report
bankers.
themselves as to the opinions of leading
Power of Review
or sales of assets
Excepting on the grounds of actual fraud, mergers
banking law would not be
conducted under the proposed section of the
of the Banking Superinsubject to judical inquiry. With the approval
tendent a merger would be effected upon the two-thirds vote of each of
the institutions involved.
It has frequently been declared that the collapse of the many attempts
to merge the Bank of United States had been due to the fact that any
terms agreed upon had to be submitted to the stockholders. Under the
present laws on bank mergers the delay which would have resulted made
almost any transaction an impossible one. The revelation of the terms
1520
FINANCIAL CHRONICLE
agreed upon would have led to heavy withdrawals of deposits
between the
dates of the announcement and the stockholders' vote. By the time
the
stockholders could register their approval or disapproval, it was
held, the
first terms agreed upon would have become impossible.
In banking quarters opinions as to the desirability of this amendment
to
banking law vary. It is generally agreed that the apparent loss
of rights
to stockholders, under the circumstances in which such mergers
would
be carried out, would not be an important consideration. Since
the closing
of the bank in any case brings severe losses to the stockholders, a merger
on terms to which they are not party would not in actual fact injure
those
possessing the shares.
On the other hand, there has been considerable difference of opinions as
to whether it is desirable in all cases to bring weakened banks under
the
protection of stronger institutions. At the time of the suspension
of the
Bank of United States several prominent bankers contended that such
a
transaction might prove injurious to the stronger bank. Those in
favor
of the proposed amendment contended, on the other hand, that terms
can
always be found on the basis of which the merger would be
found
generally desirable.
Terms of Bill
The terms under which forced mergers or sales of assets under the
proposed amendment are outlined as follows in the bill:
"If any bank or trust company is conducting its business in
an
unsafe manner, or is in an unsound or unsafe condition to
its business, or cannot with safety and expediency continue its transact
business,
so that the superintendent is authorized to take possession thereof
under the provisions of Section 57, and if, in the opinion of
the
superintendent, the public interest will be furthered by an immediate
merger of such corporation into another corporation, or an immediate
sale of its assets in whole or in part to another corporation,
the
merger or sale is authorized •• *."
Another bill just introduced in the Assembly at the request of the Banking Department proposes that in their annual reports banks and trust companies shall state the number of directors, and committee meetings held,
giving the record attendance of each director.
[VoL. 132.
to be a great friend of agriculture, but had failed
to use more than a small
fraction of the resources placed at his command under the laws
creating
those organizations to aid the credit position of the farmers.
Senator Brookhart talked nearly two hours, repeating many of the
charges which he had before made against Mr. Meyer as a representative
of Wall Street.
Senator Frazier took much the same line, expressing the belief that Mr.
Meyer was allied with financial forces which did not have at
heart the
best interests of the farmers.
The openly voiced opposition to Mr. Meyer was so limited that an hour
and a half before the time set for the vote-4 o'clock—the Senate
turned
to other matters.
Mr. Meyer has been serving as Governor of the Federal Reserve Board
under a recess appointment. His nomination was sent to the Senate
in
December and was once favorably reported by the Banking and Currency
Committee. But because Senator Brookhart asserted that he had not had
an opportunity to question the nominee, the name was recalled to
the
Committee, which appointed a subcommittee, including Mr. Brookhart.
This subcommittee, and the full banking and currency committee finally
again reported favorably.
Some of the recent items in these pages, bearing on Mr.
Meyer's nomination and the Senate Committee hearing
thereon appeared in our issues of January 24, page 598;
January 31, page 776; February 7, page 956, and February 14, page 1153. In its issue of February 26 the "United
States Daily" said:
Mr. Meyer succeeds Roy A. Young, now Governor of the Federal Reserve Bank of Boston, as Governor of the Board. He takes the place in
the Board menthership, however, that was vacated by Edmund Platt, the
Vice Governor, who resigned to enter a commercial banking house. Mr.
Platt was named from New York, and the statute prohibits appointment
of more than one member from any Federal reserve district. It was not
until Mr. Platt resigned, therefore, that Mr. Meyer was named to the
Board and designated as governor by the Pi esident.
The circumstances of Mr. Young's retirement and election to the Boston
bank governorship and the retirement of Mr. Platt to enter private business
were declared by Senator Brookhart to warrant an inquiry into charges
that Mr. Meyer had "conspired" to obtain the appointment and "arranged"
the several resignations. The witnesses called by Senator Brookhart,
among whom was Mr. Young, denied that any such program had existed.
Mr. Young testified that he had accepted the new post purely for the
personal reason of rehabilitating his own finances.
Bill in New York State Assembly Would Permit Extra Dividends for Savings Banks
It was stated in the New York "Journal of Commerce"
of Feb. 26 that at the request of the Banking Department
a bill has just been introduced in the New York State Assembly which will make it possible for savings bank trustees to declare extra dividends when undivided profits and
guaranty fund are in excess of 10% of the deposits. The
Federal Reserve Board's Ruling on Reserves of Member
account added:
The trustees, if they think it desirable, under the proposed amendment
Banks Against Liabilities Arising From Deposit
would be permitted to declare an extra dividend one-half of 1% in
of Foreign Currency.
excess
the regular authorized
of
dividend. However, where this would bring the
total dividend up to a level about 5% the declaration of the extra
would
be prohibited.
New Jersey State Bank Commissioner Backs Bill to Raise
Loan Rates.
State Banking Commissioner Frank H. Smith of New
Jersey made public on Feb. 19 his reasons for endorsing
the bill pending in the Legislature to increase the smallloan interest rate from the present limit of 11
/
2% per
month to 21
/
2%. Trenton advices to the New York
"Times" from which we quote added:
He said he believed it to be a question of whether it is worth-while
to
retain the small-loan business in New Jersey, and pointed to the possibility
of licensed small-loan brokers being driven out of business if the
present
rate is continued.
"The question as to whether or not it is worth-while to retain the
small.
loan business under licensed supervision is one which is of
primary interest to a considerable number of families within this State,"
said the
commissioner.
"On the assumption that it is necessary for the =TIMM good of
people of the State to permit the existence under licensed supervision the
of
the small-loan business rather than to place those who find themselves
need of funds at the mercy of unlicensed lenders, the Commissioner in
of
Banking and Insurance has endorsed the proposed bill primarily because
of its added supervisory and regulatory features.
"During the year ended Nov. 30, 1930, lending operations under
licensed
supervision were curtailed to such an extent that the balance of
loans
outstanding by licensed lenders amounts to $7,829,000, as compared
with
the figure of $20,549,000 outstanding on Nov. 30, 1929."
In a ruling
arising from a
member bank
Reserve Board
with regard to reserves against liabilities
deposit of foreign currency to the credit of a
with a foreign correspondent, the Federal
holds that a liability arising in the manner
described must under the law be regarded as a deposit
liability and subject to the corresponding reserves. The
Board's ruling, as given in the February "Bulletin" of the
Federal Reserve Board, follows:
A question has been raised as to the necessity for the carrying of reserves
by a member bank against liabilities arising from transactions whereby
foreign currency is paid into an account maintained by the member bank
with a foreign corre,pondent, the amount being repayable by the member
bank in foreign currency with interest on a specified later date. The
liability might arise in one of several different ways, but in the case
presented to the Board one of the customers of a member bank makes or
arranges for the deposit of foreign currency to the credit of the member
bank in its account with a foreign correspondent, with an arrangement
whereby the depositing customer is given credit on the books of the
member bank in foreign currency payable at a future date.
The liability of the member bank incurred in receiving deposits in the
manner stated appears to be in all respects the same as the liability
incurred in receiving any ordinary deposit except that (1) in this case
the deposit is received by the member bank's correspondent abroad and
credited in the member bank's account with such correspondent, and (2)
the deposit is received and payable in foreign currency. Although the
deposit is received by the foreign correspondent for credit in the account
of the member bank, the liability is that of the member bank
itself and
is so shown on its books. Likewise the fact that the deposit
is received
and payable in foreign currency does not affect he manner in which
it
should be classified for reserve purposes. The relation of debtor and
creditor which is ordinarily applicable between a bank and its depositor
applies in this case, and the bank is under the same liability to pay
at
the time specified although the medium of payment is not the same as
in the case of the usual depcsit. In the opinion of the
Board a liability
arising in the manner above described must under the law be regarded
as a
deposit liability and subject to the corresponding reserves.
Senate Confirms Nomination of Eugene Meyer, Jr., as Member of Federal Reserve Board.
By a vote of 72 to 11 the U. S. Senate confirmed on
February 25 the nomination of Eugene Meyer Jr. as a
member of the Federal Reserve Board. The approval of
the nomination by the Senate Banking and Currency Com- Reports Likely Soon by Group Committees
of Federal
mittee was noted in our issue of February 14, page 1153.
Reserve System—Proposals on Time Deposit ReStating that the only surprise in the outcome of the Senate
serve Changes Especially Watched—Branch Bankvote was in the small number of opponents—four insuring Study Also Advanced, With Analysis of Causes
gent Republicans and seven Democrats—the New York
of Failures.
"Times" in its report of the Senate action on February 25
The following is from the New York "Journal of Comhad the following to say in its Washington account:
merce" of Feb. 25:
On the
other hand, 42 Republicans, 29 Democrats and Senator Shipstead,
Keen interest is displayed in local banking circles in the forthcoming rethe Farmer-Labor member, voted for Mr. Meyer. He even commanded
ports of two system committees of the Federal Reserve System, which have
the support of Senator Heflin, a violent opponent of Federal Reserve
Board been spending the past few months in a study of Reserve
credit and branch
policies. Counting the pairs, there were only 14 Senators opposed to the
banking. These reports have been steadily advanced, and their appearnominee.
ance is now thought likely by the late spring or early summer.
Only two speeches were made against confirmation.
The two surveys being made by the system committees represent what is
believed to be a distinct departure in Federal Reserve practice. Each of
Brookhart Makes an Attack.
these
Senator Brookhart in his final assault charged that Mr. Meyer
entire system, including representatives
was a of thecommittees is supported by the
Wall Street man and unfriendly to
Federal Reserve Banks and the Federal Reserve Board,and represents
the cause of agriculture. He said S
unification
that as head of the War Finance Corporation,
and later as Farm Loan confronting of the facilities of the system to tackle two major problems
it. The first committee has been devoting itself especially to
Commissioner, or head of the Farm Loan Board, Mr. Meyer was
supposed the matter of legal reserve ratios, and its major
conclusion, it has already
FEB. 28
1931.]
1521
FINANCIAL CHRONICLE
Demand for Cash.
Reserve System before the
been indicated by spokesmen for the Federal
demand for currency during the past three months
reserve
higher
the
in
be
that
will
Changes
,
Washington
in
committee
g
Glass investigatin
the flat 3% have been caused both by seasonal conditions and by local banking situarequirements should be established for time deposits than
a series of tions. During the first 10 months of 1930 there was a continuous decrease
provision now in force. The branch banking survey, through
in money in circulation, when allowance is made for seasonal influences,
questionnaires, has sought to Isolate the major causes of bank failures.
than the
so
that in October the total currency in use was $300,000,000 less
Secrecy.
in
Work Veiled
industrial pay
year before. This decrease in cash reflected the decline in
e
considerabl
with
shrouded
The work of the system committees has been
retail sales, and in the level ofretail prices. Beginning
year, rolls, in the volume of
increased at a
secrecy, no public announcement being made of their work. Last
with the third week in November the volume of currency
the
described
of
Commerce
Journal
The
n,
organizatio
their
shortly after
the usual seasonal growth. This is indicated in the
than
rapid
more
rate
actively
which shows the volume of currency outside the
organization and purpose of the two bodies. The work has been
being in chart, [this is oralt-Ed.)
December
carried on, it is understood, the headquarters of the two bodies
Reserve banks and the Treasury on Wednesdays in November.
located.
are
secretaries
Washington, where their executive
past three years. A marked growth from nonseasonal
in the and January in the
d
largely
is
concentrate
moment
districts,
the
at
and
Richmond
bankers
Louis
among
St.
Interest
evidenced chiefly in the
bankers who have factors was first
work of the Reserve Credit Committee. There are some
conditions resulting from important bank failures caused
unsettled
where
be
to
ought
deposits
time
expressed the view that the legal reserves on
from the Reserve banks, both for the purpose of
which is withdrawals of cash
and meeting
advanced to the prevailing level required for demand deposits,
increasing the cash held in vault by local commercial banks
and
New
York
Chicago.
in
13%
and
banks
city
in
7% in country banks, 10%
cash by the public. On Dec. 11 the suspension of a
for
demand
Increased
before the Glass Comgave rise
the Reserve city banks. This view was advocated
member bank in New York City with $160,000.000 of deposits
mittee by Albert H. Wiggin, Chairman of the Governing Board of the Chase to increased demand for cash at several banks in that city, which was an
National Bank.
growth in the volume of money in circulation of
for a important factor in a
A number of other bankers have privately indicated their preference
Dec. 10 and Dec. 17. This more than seasonal
between
0
$180.000,00
reduction in the required reserves on demand deposits to offset the planned Increase was not confined to New York, but was felt also in other districts,
by
to be held
increase on time deposits. This latter viewpoint appeared
Francisco, and Chicago. In the last week before
York, cniefly Richmond, San
Philadelphia, and the
Governor George L. Harrison of the Federal Reserve Bank of New
Christmas an important bank failure occurred in
committee.
Glass
the
larger than the usual
before
who also appeared as a witness
growth of circulation for that week was $50,000.000
to return to the
Plan Would Increase Credit.
seasonal amount. After Christmas, currency began
is pointed out that a Reserve banks, but in the first two weeks the return flow was smaller
If the plan favored by Mr. Wiggin is adopted, it
credit would take place, than usual; after that time, however, the flow was accelerated. In the
large net increase in outstanding Federal Reserve
the money market. In latter part of January, when the postholiday seasonal decrease in currency
on
banks
Reserve
the
of
thus strengthening the grip
still
outstanding has averaged usually comes to an end, the volume of money in circulation was
credit
reserve
of
volume
the
years
few
the last
in
time deposit required reserve somewhat larger than a year ago, and also 5100.000.000 larger than
around a billion dollars. An increase in the
Mr. Wiggin suggested should be October, although in an ordinary year, currency in circulation at the end
to the present demand deposit level, which
October.
required average volume of of January is about $150,000.000 to $200,000.000 smaller than in
by jumps of 3% each year, would raise the
to rough esti- It may be estimated, therefore, that an additional amount of cash aggreFederal Reserve credit by some $750,000,000, according
of the
gating between $250.000,000 and $300,000,000 is held outside
mates made by bankers.
Reserve System Com- Treasury and the Federal Reserve banks as the result of developments in
The chief contribution in the report of the Federal
series of causes of bank the banking situation in the last two months of 1930. Of this amount.
mittee on Branch Banking is expected to be a
causes. This study. it is probably less than one-third is still held in vault by commercial banks,
failures, with statistical material on each of these
by the Federal particularly in counLry districts, for the purpose of maintaining an unthought, might be made the basis for suggested legislation
any possible
usually liquid condition with a view to being prepared to meet
Reserve Board on the branch and grouo bankin • -.ruble=
the vaults
further withdrawals of deposits, The increase of cash held in December,
e in November and
.
was
tonskerabl
purpose
that
of
for
banks
finanFederal Reserve Board on Bank Suspensions-197 Closed
.rite toe return of confidence most of this cash, especially in the
Cash within January.
cial centers. nas been returned,to the Federal Reserve banks.
large volume.
drawn oy the public, however, still remains outstanding in
'ard.
Reap-ye
According to the compilationof the Federal168 the
Reserve Bank Credit.
year;
banks
this
January
197 banks suspended in
past three
Changes in the volume of Reserve bank credit during the
Reserve *Vnie01;
currency into
closed were not members of the Federal
months have been traceable largely to the movements of
is
by
January
indicated
during
parathe reopening of 43 banks
circulation which have been discussed in the preceding
as given in the and out otThe
factorls
tv:companying table shows changes in the principal
the Boardi whose compilations for January,
,raphs.
and
In tile Reserve bank situation between the first week in November
February issue of the "Federal Reserve Bulletin," follow:
in January.
Christmas week, and between that week and the last week
BANK SUSPENSIONS.
difficulties by order of su ervisory The figures are weekly averages of daily reports.
(Banks closed to public on account of financial
sources
of suspensions include ban s subseBy combining gold with Reserve bank credit, the two principal
authorities or directors of the bank. Figures
between
are
preliminarY.1
1931
January
for
of Reserve bank funds available to member banks, it appears that
Quently reopened. Figures
funds used
the first week in November and Christmas week Reserve bank
additional
Deposits of Banks
by member banks increased by $400.000.000 (5350,000.000 of
of
Number
Banks
Thousands
(in
Suspended
amount.
larger
Banks
Number of
Reopened.
Reserve bank credit and $50,000.000 of gold). An even
of Dollars).
Suspended.
for curdemand
Federal Reserve
increased
about $470,000,000. was needed to meet the
District.
Year Jan. Year Year rency, the additional funds coming largely from a decrease in member
Year
Jan. Year Year Jan. 1930.
1929.
1929. 1931. 1930.
last week in
1931. 1930. 1929. 1931.
bank Reserve balances. Between Christmas week and the
banks deJanuary, on the other hand. Reserve bank funds of member
Reserve
Boston
1
(decrease of $410.000,000 in Federal
187,299 19,101 ---6,693
0
by
$360,000,00
creased
6
11
2
___
New York
The member
3,846 43,421 3,304 ___ ___
3
10
3
bank credit, offset to the extent of 850.000.000 by gold).
Philadelphia.,
2
2
1
8,431
bank funds
6,391 41,866
14
41
7
Cleveland
3
banks were in a position to relinquish this amount of Reserve
12
7,183 85,640 19,601 12
59
s.
152
18
Richmond
14
16
3
as a consequence of a decre me of $395,000,000 in currency requirement
140 119 24,196 91,151 62,405
36
Reserve
Atlanta
3
bank
27
7
35,579
an increase in member
111,279
by
16,988
$35,000,000
93
to
offset
of
the
266
extent
48
Chicago
3
52
in the form
44 16,501 182,236 9,422 18
358
47
balances. The liquidation of Reserve bank credit was chiefly
St. Louis
7
7
2
security
3,946 24,109 15,300
84
156
13
Minneapolis
of a reduction in discounts and in acceptances. Government
12
'25
___
39,204
.26
28,
3,585
193
137
16
purchased at
Kansas City
2
4
629 16,485 1,931 ___
holdings increased somewhat in December, but securities
11
41
4
Dallas
and
seasonal
1
1
1,402 16,145 20,254 ___
16
21
that time for the purpose of partially meeting the unusual
3
San Francisco...
that
other requirements of that month were nearly all sold in January, so
68
147
43
32
234.
864.715
1.360
end of
197 1.345 642
Total__
total Reserve bank holdings of United States obligations at the
Back Ftoures.-See Annual Reports for 1928 (Table 115), 1927 (Table 111). January were at approximately the level maintained from August to
and 1926 (Table 98).
December of last year.
Last month (page 775) we gave the Board's compilation RESERVE BANK CREDIT OUTSTANDING AND FACTORS IN CHANGES.
[Weekly Averages of Daily Figures-In Millions of Dollars.)
ns by States in 1930; in its latest "Bulletin"
a
of bank suspensio
(February) the Board publishes revised figures of the 1930
suspensions.
Federal Reserve Board's Review of Banking Conditions
During January-Credit Liquidation Since October
1929 About $8,500,000,000.
The Federal Reserve Board in its January Bulletin reports
that "the reduction of about $3,000,000,000 in outstanding
bank credit during the 15-month period (from Oct. 1929)
was accompanied by a liquidation of about $5,500,000,000
of loans made by non-banking lenders to brokers and dealers
In securities." "Consequently," says the Board, "total
liquidation of credit extended by banks and by others through
the banks has amounted to about $8,500,000,000 for the
15-month period." The subject of credit liquidation is discussed at length by the Board in its February Bulletin in its
review of the month, which is given in full herewith.
Current Banking Developments.
Since the turn of the year there has been a continuous liquidation of
bank credit, reflecting reductions in security loans, offset in part by increases in investments. Federal Reserve bank credit, which had increased
rapidly in November and December in response to a demand for currency
the turn of the year and
only partly seasonal in character, declined after
Stood at the end of January below its level at the beginning of November.
for bankers' acceptances
rate
Money rates eased further in January, the
declining to I 5.6% in the middle of January, though it advanced slightly
toward the end of the month. Discount rates at several Reserve banks
these rates stood at 2%
were reduced further. At the end of January
Cleveland, Atlinta, Chicago, St.
In New York, 2%% in Boston, 3% in the
five Reserve banks.
other
Louis, and San Francisco, and 33,4% at
Total reserve bank credit__
,
Monetary gold stock
Treasury currency adjusted__
Money In circulation
Member bank reserve balance
Nonmember deposits, &c_
linexneoam nanItal InnrIc:
Week
Ended
Nov. 8
1930.
Week
Ended
Dec. 27
1930.
Week
Ended
Jas. 31
1931.
1,038
4,536
1,793
4,506
2,435
35
:MI
1,386
4,590
1,787
4.977
2,376
26
334
976
4,636
1,784
4,581
2,411
25
379
Change Between
Given Weeks in
November December
and
and
December. January.
+348
+54
-6
+471
-59
-9
-7
-410
+46
-3
-296
+35
-1
-5
ances since the turn of the
The increase in member bank reserve hi
reserve requirements, since both
Year has not represented an increase in
and investments have decreased.
member bank deposits and their loans
banks has represented rather
The larger volume of reserves held by the
the inflow of currency from
the accumulation of excess reserves caused by
decrease in the demand for short-time
circulation at a time of continuous
of excess reserves carried by
funds in the money market. The amount
considerably larger than usual.
member banks in January has been
Member Bank Credit.
available showing loans and investments
Figures have recently become
the year 1930. The reports show
Of all member banks on the last day of
y preceding call date, and the end
that between Sept. 24, the immediatel
in total loans and investof the year there was a decrease of $700,000,000
is the resultant of relatively slight
ments of member banks. This total
banks, a growth of $250,000.000
changes in loans to customers, including
of $1,000.000,000 of openin the banks' investments, and a liquidation
brokers and dealers in New York City.
market loans, particularly loans to
changes in the principal classes of
A table is here presented showing
banks in New York City, in other central
loans and investments of member
banks for the 15-month period
Reserve and Reserve cities, and in country
from the autumn call in 1929 to the end of 1930. A more detailed table
showing changes for the same classes of banks for the year ending last
1522
FINANCIAL CHRONICLE
autumn, for the last quarter of 1930,
and for the entire 15-month period
Is shown at the end of this review.
CHANGES IN CONDITION OF MEMBER
BANKS OCT.4 1929-DEC.31 1930.
[In Millions of Dollars. Figures for Dec. 31 1930 preliminar
y.]
Member Member
All
Banks in Banks Or
Member New York Other
Banks.
City.
Reserve
Cities.
Loans and Investments, total
Loans to banks
LOWS to other customers, total_ __ _
Secured by stocks and bonds_ _
Secured by real estate
Otherwise secured and unsecured_
Open-market loans, total
Acceptances
Commercial paper
Street loans
Investments
--1,130
--13
--2,312
--170
A-74
--2,216
--45
-F207
4-136
--388
A-1,240
A-429
--19
--511
+193
--29
-675
4-329
A-118
+26
A-185
4-628
--237
--8
--877
--214
A-136
--799
+4
+113
4-136
--246
A-647
"Country
Banks."
--1,322
A-15
--924
--149
--34
--741
--377
--25
--25
--327
--34
[VOL. 182.
Country Banks.
Totab-AU Member Banks.
Total
Preced- Total
Preced15-MO. Last 3 Oro 12 15-Mo. Last 3 ino 12
Period. Mos. Mos. Period. Mos.
Mos.
Loans and Investments, total_ -1,322 --486 --836
-1,130 --688 --442
Loans to banks
+15
--3
4-17
--13 4-162 --174
x Loans to customers, total-- --924 --303
--621 -2,312
--73 -2,239
Secured by stocks & bonds -149
--54
--95 --170
4-75 --245
Secured by real estate_
-34
--29
--5
4-74
A-63
A-11
Otherwise seed & unsec.d_ -741 --220 --521
-2,216
--210
-2,006
Open-market loans, total__ _- -377 --110 --267
--45 -4,031 4-986
Purchased paper:
Acceptances
--25
--25 4-207 A-103 4-104
Commercial paper
--45
--25
4-20 4-136 --159 4-296
9Street loans
--327
--66 --261 --388 --975 +587
Investments, total
-34
--69
+35 4-1240 4-255
x Exclusive of banks.
y Loans on securities to brokers and dealers in securities In New
York City,
+935
Earnings and Expenses of Federal Reserv
e Banks in
Taking the 15-month period from Oct. 4 1929, pr or to the
break in
1930-Earnings Lowest Since 1917.
the stock market, to the present time, it would appear
that during the
first 12 months there was a large liquidation of loans to
Details of the earnings and expenses of the Federal Recustomers, and
particularly of loans to trade and industry, reflecting the effects
of reduc- serve banks during 1930 are made available in
the Reserve
tion in current credit requirements at a time of diminishe business
d
activity. Board's Februar
The heavy liquidation of local customer loans was offset during
y "Bulletin." A brief statement by the
that period
by an increase in investments and in open-market loans, including
accept- Board last month, indicating that the earnings the past year
ances, commercial paper, and street loans. The increase
in street loans of the 12 Reserve banks were $36,424
,000 as compared with
during that time represented a taking over by the banks of part
of the
loans withdrawn by nonbanking lenders after the break in security prices. $70,955,000 in 1929, was referred to in these columns Jan.
By the final quarter of the year these loans had declined to a small figure, 10, page 219.
The 1930 gross earnings, the Board notes,
and continued liquidation of security loans was reflected in a reduction
are the lowest since 1917. Only five of the Reserve banksof street loans by member banks, which are now at a level
$400.000,000
New York, Philadelphia, Atlanta, Minneapolis and Dallaslower than before the stock market break. During the last
quarter of
the year there was little further liquidation of customer loans,
but street reported sufficient net earnings to pay accrued interest in
loans continued to decline as the demand for accommodation
from the full, the remaini
ng seven banks paying their dividends enstock market decreased, with the net result that loans and investme
nts of
member banks during 15-month period decreased in all by $1,130,00
tirely or in part out of surplus. The New York, Philade
0,000.
lThis liquidation of member bank credit was accompanied
by an even phia, Minneapolis and Dallas Federal
Reserve banks were
larger liquidation of nonmember bank credit. The latest figures
for all the only
ones to report an addition to surplus account and
banks in the United States show a decrease of $1,250,00
0,000 between
October 1929 and October 1930. If the relation of the decrease
the two last named are shown as the only banks to pay
in
nona
member bank credit and in member bank credit remained
approximately franchise, tax to the United
States Government. The de-,
the same during the last quarter, then the total decrease
in bank credit
tails as given in the February "Bulletin" follow:
outstanding for the 15-month period is in the neighbor
hood of $3.000..
000,000. A part of this decrease in bank credit has been
During 1930 the gross earnings of the Federal Reserve
due to bank
banks, at $36,suspensions during the period and represents the eliminati
on from the 424,000, were $34,531,000 less than in 1929 and the lowest since 1917. The
aggregate resources of active banks of such resources
of failed banks as deduction of current expenses of $28,343,000-somewhat less than the
have not in one way or another been transferred to other banks.
previous year-and adjustments for depreciation,
reserves for losses and
The reduction of about $3.000,000.000 in outstanding bank
credit dur- self-Insurance, resulted in net earnings of $7,988,000 available for distribuing the 15-month period was accompanied by a liquidati
tion
as
dividends
,
transfers
on of about
to surplus, and franchise tax to the Govern$5,500,000.000 of loans made by non-banking lenders to
brokers and ment. Earnings, expenses and distribution of earnings for all Reserve
dealers in securities. Consequently, total liquidati
on of credit extended banks combined for 1929 and 1930 are summarized in the accompanying
by banks and by others through the banks has amounted to
about $8,500,- table:
000,000 for the 15-month period.
EARNINGS AND EXPENSES OF FEDERAL RESERVE BANKS
DURING
While the total volume of member bank credit showed large
a
decrease
1929 AND 1930.
during the last quarter of the year, there was little change
in the total
IIn thousands of dollars]
volume of credit at member banks In New York City. They
liquidated
during the quarter about $400,000,000 of street loans, and
the volume of
Increase
this class of loans at these banks is now little higher than
it was during
1930.
1929.
or
the period preceding the break in the stock market in 1929. On
Decrease
the other
hand, these banks increased their investments, their loans to
(-) 1930.
brokers outside of New York, and their holdings of acceptances, so that
the change Total earnings
36,424
70.955
-34,531
in total loans and investments for the quarter was relatively
28,343
29,691
small. For Current expenses
-1,348
the 15-month period since October 1929, the New York City
banks show
Current net earnings
8,081
an increase of $400.000,000 in total loans and investments.
41,264
-33,188
At banks in
Chicago and in other Reserve cities the liquidation for the
last quarter Additions (withdrawals from reserves, &C.)
3,475
956
2,519
amounted altogether to $225,000,000, the reduction in
3,568
street loans and In Deductions (for reserves, &c.)
6.8174
, -2,249
commercial paper being offset by increases in loans to customer
s on securiNet
deductions
93
ties, on real estate, and unsecured. At country banks a
4,861
-4,768
liquidation all
along the line continued during the quarter. Their total
Net earnings available for distribution
loans and invest7,988
36,406
-28,416
ments decreased by about $500,000,000, making a total
reduction during Dividends paid
the 15-month period of $1,320,000,000. During the last quarter
10,269
9,684
685
of 1930 Transferred to surplus
-2,298
these banks showed a reduction of $300.000.000 in loans
22,536
-24,834
to customers, of Franchise tax paid U.S. Government
17
4,283
-4,265
$110.000,000 ht open-market loans, and of $70,000,
000 in investments.
The lower gross earnings reflected a decrease of $356
A part of these reductions has been due to the elimination of
000.000 in the daily
banks through average holdings
of bills and securities, together with a reduction
suspensions, but there has also been a large-scale liquidati
in theon of credit at average rate of earnings
from 4.86% to 3.25%. Earnings from bills disactive banks in country districts, reflecting diminished activity
of trade counted decreased
from $47,791,000 in 1929 to $10,672,000
and industry and a decline in deposits due in part to decreases
in 1930, the
in the price result of a decrease
of $679,000,000 in average daily
of agricultural products.
holdings of discounts
and a lowering of the average rate of earnings
from
5.03%
to
3.93
%• EarnIncreased Bank Liquidity.
:ngs from bills bought in the open market
were also lower, but earnings
The period of 15 months between October 1929 and the end of 1930 was from the larger holdings of Government
securities, at $17,273,000, were
one of readjustment and liquidation for the banks of the country,
$9,108,00
0 larger than in 1929. The rate of return
as well
on bills bought in the
as of an unusually large number of bank suspensions. At the end of the open market was 2.85% in 1930 compared
with
period the active banks taken as a whole were in a position of greatly ment securities 3.06% compared with 3.93%. 5% In 1929: on GovernThe average holdings 0
discounted bills, bills bought in the open
increased liquidity resulting both from a decrease in the total volume
of
market, United Stater; Governtheir outstanding credit and a decrease in the proportion of their
assets ment securities, and other bills and securities, together with average rates
that depend on local situations and are under the influence of the customer and amounts earned on each, are shown for recent
years in the accompanyrelationship. The banks' open-market holdings, which are in part in the ing table:
nature of secondary reserves, on the other hand, increased during
EARNINGS ON BILLS AND SECURIT
the
IES.
period in relation to their total resources. Furthermore, the liquidati
[In thousands of dollars.]
on
of $5,600.900,asso of loans to the security market made by nonbanking
lenders also strengthened the banking situation.
Bills and Securities Held by 48 Federal
Reserve Banks.
ORANGES IN LOANS AND INVESTMENTS OF ALL
Bills
V.8.
All Other
Year.
MEMBER BANKS.
Bills
Bought
Govt.
&
Total.
Dis[In Millions of Dollars. Based in part on preliminar
in Oven &curt- Bills
Securiy figures for Dec. 31 1930.
counted. Market.
ties.
ties.
Daily average holdings:
CUy Banks.
1925
1,139,507 481,515 287,329 358,962
11,701,
1928
1,209,309
570,613 281,386 349,790
New York City
7,520'
Other Reserve Cities.
1927
1,124,538
442,287 263,258 417,480
1,613
1928
1,467,371
839,942
327,806
Total
297,499
2,124
Preced- Total
Pieced1929
1,413,058
950,580
241,399 207,659
IS-Mo. Last 3 Ina 12 15-Mo. Last 3 fry 12
13,420'
1930
271,727 213,201 563.672
1,056,895
Period. Mos. Mos. Period. Mos. Mos.
8,295
Average rate of earnings(%):
.Loans and havestments, total_ _
1925
3.51
3.67
3.17
i-429
3.56
+22
3.59
+407
--237
--225
-12
1926
Loans to banks
3.76
3.95
3.55
--19 +114 --133
4.21
3.60
4-51
--59
x Loans to customers. total
1927
3.60
3.83
3.49
-511
+57
3.88
-570
3.41
-877
+171
-1,048
1928
Secured by stocks dr bonds 4-193
4.24
4.56
3.97
4.84
4-106
3.64
+37 --214
4-22 --236
1929
Secured by real estate_ _
4.86
5.03
5.00
--29
--10
4.94
3.93
--19 4-136 4-100
4-36
1930
Otherwise sec'd & unsec'd_ --675
3.25
3.93
2.85
4.09
3.06
--39
--636
--799
4-64
--848
Earnings:
Open-market loans. total_ _ _ 4-329
--387 4-716
+4 --534 4-538
1925
Purchased paper:
39,986
17,680
9,104
419
12,783
1926
Acceptances
45,460
22,552
+118
10.003
+34
3
12,589
+84
+113
+67
+46
1927
Commercial paper
40,482
17,011
9,207
+26
+12
14,206
+14 +136 -126 +262
1926
Y Street loans
62,275
38,334
13,021
4-185 --433 A-618 --246 --475 A-229
10,828
1929
Investments, total
68,683
47,791
4-628 4-237 4-391 4-647
12,064
663
8,165
4-90 4-557
1930
34,365
10,672
6.081
17,273
339
1523
INANCIAL CIEROATICITig
FHB. 28 1931.]
H
800.-1,1cbFachm=0.000..
cot4w
'1.21,,Wloio.W;+-obt.
..p.Wv.005Ww-404.t.2,-ww-4
Gross and net earnings and the distribution of net earnings are shown in
Total current expenses of the Federal Reserve banks Ai 1930 were $28,for all Reserve banks combined since the beginning of
343.000. which is $1,348,000 less than in 1929. The cost of printing, the following table
Reserve System; more detailed figures for 1930 are shown
Issuing and redeeming currency was $924,000 lower than the figure of the Federal
$3.099.000 for the previous year, when this cost was unusually high by rea- further below:
son of the expense incurred in the process of substituting notes of smaller DISPOSITION OF FEDERAL RESERVE BANK EARNINGS, 1914-1930.
(In thousands of dollars.]
dimension for the old size. Salaries paid to officers aggregated $2,680,000
for the year, and to clerical staff and others $14,574,000, making a total
with
wages,
compared
and
salaries
Franchise Profit
expenditure of $17,254,000 for all
DirtTrans- Tax Paid (±) or
expenditures included
$17,265,000 in the preceding year. Other major
to U. S. Loss(-)
dends.
ferred.
Net.
Gross.
against $1,470.000,
taxes on banking houses, aggregating $1,374,000, as
Carried
GovernPaid.
to SurForward.
mast.
Nits.
and telegraphic and postage charges amounting to $2,247,000, as against
.e banks-New York, Philadelphia
$2,444,000 in 1929. Five of the Reser,
Atlanta, Minneapolis and Dallas-reported sufficient net earnings to pay All Federal Reserve
banks:
-359
accrued dividends in full, the remaining seven banks paying their dividends
-142
2,173
1914-15
+1,008
2,751
5,218
entirely or in part out of surplus.
1916
1.134
1,134
+510
the
by
Federal
provided
is
it
9,580
earnings
16,128
1917
For the further distribution of net
48,334
-1,159
52,716
67,584
to its surplus account
1918
Reserve Act that each Reserve bank shall transfer
70,652
2,704
78,368
102,381
1919
dividends
60,725
82,916
the entire balance of such earnings as remain after payment of
181,297 149,295
1920
15,993
59,974
82,087
122,866
until surplus shall equal 100% of its subscribed capital, and that thereafter
1921
-660
10,851
16,498
be
shall
requirements
transferred
50,499
1922
10% of its earnings in excess of dividend
2.545
3,613
12,711
50,709
1923
tax.
as
Howfranchise
a
Treasury
the
to
to surplus, and the balance paid
114
-3.078
3,718
38,340
1924
2,474
59
-ever, the surplus of the 12 Federal Reserve banks combined after the closing
9,449
41,801
1925
818
8,465
16,612
47,600
of the books at the end of the year amounted to $274,636,000. a net reduc1926
249
5.044
13,048
43,024
York,
Philadelphia,
New
the
1927
tion for the year of $2,298,000. although
21,079
2,585
32,122
64,053
1928
Minneapolis and Dallas banks made some additions to their individual
4,283
'22,536
36,403
70,955
1929
17
-2,298
surplus accounts, the latter two paying small franchise taxes. The total
7,988
36.424
1930
subscribed capital of the Federal Reserve banks at the end of 1930 amounted
147.126
275,136
100,942
523.204
941,052
before.
Total
to $339,280,000 against $341,951.000 a year
EARNINGS AND EXPENSES OF FEDERAL RESERVE BANKS DURING 1930.
EARNINGS.
Boston.
Total.
Discounted bills
Purchased bills
United States securities
Deficient reserve penalties
Miscellaneous
Total earnings
New
York,
Philadelphia.
Cloreland.
$
$
$
$
8
10,672,215 595,987 1.910.378 1.217.736 1,303,852
6,081.187 438.264 1,917,937 155,563 538,682
17,273,331 1,201,549 5,895,425 1,521,825 1,505,428
27,066
11,401
28,690
9,054
225,748
642,383
89,718 208,550
123,232
2.171,563
Richmond.
MinnsAtlanta. Chicago. Si. Louis. apolis.
$
$
$
877,181 1,087,248 1,222,081
281,883 417,294 629,854
408,503 315.989 2,503,592
35,290
24.139
28,235
45,588 119,054 443,336
$
660,996
285,169
753,034
17,431
29,055
Kansas
Cittl.
$
172,441
228,551
747,484
7,644
78,962
San FranDallis.
$
624,945
204,411
530,153
11,383
296,775
Cia00
$
$
441,337
229,821
873:178
17,844
22,933
558,033
753,758
1,017.171
7.571
71,977
36,424.044 2,368,086 10,393,189 2,996,243 3,585,202 1,641,390 1,963,724 4,834,153 1,745,685 1,235,082 1,667,667 1,585,113
2,408,510
CURRENT EXPENSES.
Marks:
2,679.838
Bank officers
4 6,849
117
Clerical staff
921,424
Special officers and watchmen_
1,906,063
All other
2,427
lovernors' conferences
2,880
'ed. Res. Agents' conferences
12,583
'ederal Advisory Council
155,502
11rectors' meetings
198,373
'raveling expenses_a
A.ssessments for Federal Reserve
809,585
Board's expenses
95.701
1eget fees
1nsurance (other than currency
426,633
and security shipments)
1nsurance on currency and se594,102
curity shipment:I
1,374,368
'axes on banking house
338,622
1.1ght, heat and power
1[emirs and alterations, banking
176,880
house_
242,132
1Lent
391,148
/Mee and other supplies
426,186
tinting and stationery
210,223
'elephone
499,392
'elegraph
1,747,151
%stage
475,409
pressage
733,725
54Iseellaneous expenses
a
545,649
116,250
904,394 3,225,557
170,847
36,812
505,399
94,662
54
69
65
119
678
568
15.077
7,734
31,520
7,541
60,570
3,097
264,862
5,411
136,333 222,300
903,199 1,020,380
50,943 116.171
85,767 269.352
41
109
36
90
630
780
6,887
7,331
13,901
18,772
78,901
3,319
186,529
602,170
65,666
99,738
43
70
683
8,133
12,989
237,239 320,490
417,748 1,634.841
45,842 132,699
35,516 273,346
89
134
115
122
1,228
944
11,637
23,223
18,666
22,676
170,659
542.017
48,502
86,790
136
462
1,300
13,061
16,507
122,067
338,929
34,673
61.568
609
317
1.298
6,529
12,920
193,000
642,426
73,594
167.432
341
163
1,300
29.338
10,348
175,356
522,497
47,794
E2,579
360
315
1,374
9,956
18,180
253,966
992,681
97,881
143.914
442
1,006
1.800
16,596
14,353
108.972
15,220
29,230
903
18,504
18,432
24,405
13,130
24,137
10,734
55,915
11.734
81.282
4,768
33.409
731
29,398
8,222
29,674
66,370
34,249
33,674
23.862
26,013
44,663
27,197
30,721
43,082
26,780
40,348
74,044
126,420
21,756
122,940
407,865
75,119
81,820
40,484
18,758
60,714
140,763
35,067
31.042
65,394
14,01
46,241
62,328
16,768
64,654
166,941
31,944
.17,006
66,135
20,792
13,916
69,399
17,202
18,262
97,888
40,062
23,392
39,070
21,029
, 40,071
91,681
26,112
4,211
447
20,084
36,428
20,002
6,373
193,098
44.055
47,200
18,726
13,038
1,144
92,648
34,897
35.845
28,208
35,873
27,779
14.371
13,520
35,104
162.846 152.846
63,667
36.488
55.117
51.502
-
1,622
13,559
18.132
23.217
7.537
33.130
111,615
35,356
32,585
12,044
5,351
20,275
28,557
8,015
73,700
93,998
39.591
38,367
12,059
28,256
45.228
67,093
20,013
41,049
231,868
58,546
83,541
9,611
12,385
17,758
21,829
13,592
42,991
84.661
15,554
33,731
6,155
101,707
81,432
60,269
52,807
306,628
105,447
197,023
17,538
19,447
5.166
18.032
64,933
12,230
29,342
24,597
21,499
8,457
59,124
133.703
18.667
49,216
9,860
1,500
16,720
21,905
9,612
52,544
88,763
23,234
44.418
20,238
115,098
38.367
40.698
15.410
71.018
124,192
22,574
71,683
919.937 1,698,290 1,270,109
2,307,778
66,591
4,453
175,120
15,750
976,867 1,784.609 1,341,153
2.493,648
41,060
Total, exclusive of cost of cur26,167,196 1,855,608 6,383,786 1,861,172 2,479,268 1,421,225 1,292,312 3,384.902 1,292,809
rency
rederal Reserve currency,including shipping charges:
2,039,726
Original cost
135,804
Cost of redemption
99,941
411,313 167,540 159,401 140,280
71,057 404,177
12,915
31,465
10,828
6,186
7,529
16.038
9.513
Total current expenses.- 28.342,726 2.077,792 6.826,564 2,041.627 2,649,497 1,569,034 1,372,882 3,805,117 1,398,936
210,793
11,391
52,685
4,245
80,828
5,491
PROFIT AND LOSS ACCOUNT.
Ptak:delphia.
San FranMinne- Kansas
cisco.
Dallas.
City.
Atlanta. Chicago. St. Louis. apolis.
$
5
$
$
$
$
$
36,424,044 2.368,086 10,393,189 2,996,243 3.585,202 1.641,390 1,963,724 4,834,153 1,745,685 1,235,082 1,667,667 1,585,113 2,408.510
28,342,726 2.077,792 6,826,564 2,041,627 2,649,497 1,569,034 1,372,882 3,805,117 1,398,936 976,867 1,784,609 1,341,153 2,498,648
Boston.
Total.
New
York.
Cleveland.
Richmond.
s
a
Earnings
Ourrent expenses
Current net earnings
8,081,318
290,294 3,566,625
954,616
935,705
72,356
180,927 1,532,178
6,196
115,316
187,123 1,647,494
3,474,417
191,736
952
200,000
178,163
333
59,218
2,598
192,688
378,496
Additions to current net earnings:
Withdrawn from reserve for
402,060
probable losses
Profit on U.S.securities sold '2,849,567
222,790
All other
Total additions
Deductions from current net
earnings:
Bank premises-depreclation_ 1,905,689
541,385
Furniture and equipment
409.865
Reserve for probable losses_
552,264
Reserve for self Insurance
158,350
All other
Total deductions
Net deductions from current net
earnings
3,567,553
93,136
$
s
s
$
243.960
-90,138
85,439
8.893
97,921
3,555
6,160
106,378
4,535
293,206
94.332
101,476
117,073
91,982
14,548
168,188
5,271
46,562
25,592
188,841
186.309
258,215 -116,942
590,842 1,029,036
346,749
35,993
1,992
36.900
255,952
5,658
57,523
6,695
159,000
68,139
66,067
61,816
37,985
298.510
64,218
233.681
38,980
175,332
18,848
214.875
557
798
250,000
1,302
122,048
9,130
389.688
128,923
31,752
274,387
42,317
129,151
27.781
92,462
101,055
6,069
12,781
188,959
24.761
6,037
85.829
11,934
194,990
12,250
517
4,907
685
7,474
223,640
625,735
44.533
530,424
162,969
305,520
273,218
409,853
357,832
178,366
72,839
382.624
36.517 91,021.759 9148,155
151,928
101.153
267,535
925.292
345,635
64,626
84,034
928,637
265,551
323,307 1,054,328
1,114
193,589 -200,976
272,597
-355,689
323,307 1,211.418 315,839
-157.090 -314,725
184,445 259,397
914 -468,373
8,230
262,510
682,946
1,009 -1.038,635
9,078
Net earnings available for dIvi- 7,988,182 253,777 4,588,384 1,102,771
783,777 -28,797
It,dends. surplus ar franchise tax_
4,013,779
705,949
1,002,602
10.268,598
952,934
353,472
Dividends paid
574,605 100,169 -169,157 -382,269
-452,172
Transferred to surplus account -2,297,724
17.308
ranohlse tax paid U.S. Govt_ _ _
REIMBURSABLE EXPENDITURES OF FISCAL AGENCY DEPARTMENT.
Salaries
All other
123,309
37,777
7,052
1.790
14,274
5,884
9,8051
1,978
15,945
2,097
5,023
2,878
5,280
1,962
6,665
8,875
10,354
2,163
c14,572
3,482
17.666
1,789
8,034
1,551
12,517
8.812
20.158
18,054
11.783
15,540
7.242
19.455
18.042
161,086
7,901
9,585
Total
Governors' and Agents' conferences and of the Advisory Council.
S Net addition. C Includes 85,000 officers' salaries.
a Other than those connected with
8,639
3,328
11 967
1524
FINANCIAL CHRONICLE
Senate Passes Glass Resolution Opposing Action of State
Department in Passing on Foreign Loans Floated in
United States.
On Feb. 26 the U. S. Senate passed the resolution proposed by Senator Glass in which the Senate is recorded as
opposed to the action of the State Department in approving or disapproving foreign investment loans floated in
the United States; the resolution also calls upon the State
Department to "refrain from assuming authority over the
Federal Reserve and Banks and officials thereof." The
resolution says:
"It is the sense of the Senate that the Department of State, having no
legal sanction for the action mentioned with respect to investment securities offered in the money markets of the United States by foreign governments, corporations or individuals, should desist from the dangerous practice of involving the United States Government in any responsibility of
whatever nature, either by approval or disapproval, for foreign investment
loans floated in this country; and should refrain from assuming authority
over the Federal Reserve Board and Banks and officials thereof with
respect to matters which, by express authority of law, are confined to
them and not to the State Department."
The resolution was referred to in these columns Feb. 14,
page 1169; Dec. 27; page 4151 and June 28, 1930, page
4525.
H.P. Williams of New York Title 8c Mortgage Co. Before
Senate Committee Proposes Rearrangement of
Finance Structure of Mortgage Loans—Warns of
Dangers Due to Non-Liquidity of Paper—Urges
Advances Be Kept Under 60% by Banks—Says
Average Real Estate Bond Is Undesirable as Investment—Not in Favor of Mortgage Bank.
Rearrangement of the financial structure underlying
the mortgage obligations of more of the larger apartment
and office building operations in New York and other cities
precedent to the restoration of sound mortgage financing,
was declared on Feb. 24 to be necessary by H. P. Williams
of the New York Title 84 Mortgage Co. The Washington
correspondent of the New York "Journal of Commerce"
in thus indicating Mr. Williams' views, continued:
Appearing before the Senate Banking Probe Committee, Mr. Wiiiiams
discussed the security value of mortgages and mortgage bonds from a banking standpoint, warning of the dangers of such investments by banks
with the use of demand deposits, because of the non-liquidity of the paper,
or in any event, by those which have not efficient appraisal staffs, unless
protected against loss. And Mr. Williams added that it is the exception
that a real estate bond is a good bank investment—the average present day
real estate bond is undesirable for investment by a bank. Guaranteed mortgages were far safer and more suitable.
Oppose Mortgage Bank Plan.
it appeared from the testimony of the witness that a great many banks
are carrying real estate loans, some of which are very undesirable
and none
of which are liquid. This latter condition made itself felt in the bursting of the Florida bubble, for when depositors began the heavy withdrawal
of funds from the banks these institutions found themselves possessed of a
large volume of mortgage paper for which there was no readily available
market. Mr. Williams explained that the Florida situation was not necessarily the result of the manner in which the loans were made, but of
the
inability of the banks to cash in on them when there was a need for
ready
cash.
In his appearance before the committee Marcus Nadler had recommended the establishment of a general mortgage bank, which would
be
able to take from other banking institutions their holdings of real estate
mortgages and issue their own bonds against such security. Mr. Williams
to-day expressed the thought that such an institution was not suited to
American conditions and probably would be inflationary.
The pool idea as carried out by mortgage bond houses, which since have
found themselves in difficulties, was explained by the witness as providing
for the strengthening of the weak undertakings at the expense of the strong.
Buyers of the bonds have found that they had not placed their funds in
mortgages, but actually had secured an interest in the property involved—
It was participation in the purchase price, and a little bit more, said Mr.
Williams.
It is "inconvenient" that a real estate bond, whether good or bad, should
be classified as a bond, he told the Committee, enplaining that in the past
few years a good many bad ones had been issued. In a market where the
people were anxious to place their funds at good return, there were opportunities to unload paper of questionable value.
Cities Shrinkage in Property Return.
"The question of security was not involved," he said, referring to the
avidity with which people picked up the issues. "Every one of the fully involved bond issues must go to the laundry, be washed out, and started
again."
Many loans were excessive, he said, since the ability of the proprty to
carry them was not investigated. Added to this, there has been a drop
in the general valuation of property returns from 20 to 25% since about
1924, when rentals soared because of the shortage of housing facilities in
the large cities. Properties that were producing from $30 to $35 per room
In some instances now are producing not more than $18 to $20 per room.
Mortgages on such property covered by the guarantee of companies such
as the witness represents, he said, were fully protected, since they do not
loan in excess of 60% of the value of the property. It is in the taking of
mortgages up to 80% of value that has caused the trouble, he said, adding
that in proof of this there was not a single case in New York where a mortgage guarantee company had defaulted, either as to the payment of principal
or interest, or had delayed payment beyond the due date.
He admitted that it had been found necessary by those companies to take
over large amounts of property, probably proportionate with the decreased
earning power of the structures covered. This, however, was not at the
expense of the investor.
rIou 1112.
The downward trend, he said, reflects to a great extent the unemployment situation, and until that changes there is no telling how far it will
go.
Sees Returning Stability.
"It is far more encouraging than it was a year ago," said Mr. Williams.
"About this time last year or even three months ago, if you foreclosed
a
mortgage, you got the property and had to sell it. Now the people have
a tendency to protest, and the junior interests come in and try and
protect.
They think the property is worth having. That indicates the
value is
there. It may be that the weak spots were the first to manifest trouble,
but that occurred last year and we now are getting on a stable level."
He added all of the troubles that have manifested themselves were
not
created in a single year, but represented the accumulation of many_ years
as occasioned by renewals until it was no longer possible to
keep the mortgages going.
Many of the heaviest losses were occasioned by the inefficiency of those
making the loans. The witness indicated that in many instances it
was
a case of the shoemaker not sticking to his last, and he referred to
the Bank
of United States in New York as an example of the making of loans
without
proper knowledge of loan values. He analyzed briefly the
real estate
operations of that institution, explaining that it was a long
story, the end
of which could not now be foreseen.
According to replies to the questionnaire sent out by the probe Committee, banks are holders not only of a great many real estate
mortgages, but
of a considerable amount of mortgage bonds. According to
the witness,
this Is unfortunate for, as he had previously explained, many of
the bonds
were issued and sold without idea of the shrinkage that has
come, but on
the appraised value in an inflated market and on the returns
then had.
Now has the day of reckoning approached. Rentals are down and
while it
has been possible to continue the wisely-made mortgages, losses
have had
to be taken.
Against Advance of Over 60%.
Mr. Williams declared that in no event should a bank advance
more
than 60% of the fair value of any property. He said the mortgage guarantee
companies require a 2% amortization on loans of over $100.000. Wharf
the property cannot stand that, a three year term is amply
protective.
He said that the market for guaranteed mortgages has been very
definitely
marked out by experience. The guarantee companies eliminate
factories,
churches, breweries and farm lands, make few loans on theatres or
other
specialties, and have found that small home owners are the best
risks.
He added that where mortgages cover large undertakings, such
as apartment houses and office buildings, it is necessary, to issue bonds.
In such
cases, where the financing is properly done, the bonds are good
investments.
In discussing the desirability of such bonds, the witness referred
to many
operations now under way in New York city and to some of those
recently
completed, the full occupation of which at this time insures the
safety
of the investment. A leasehold bond, he said, is merely a
participation
in bills payable.
The following is from the "United States Daily"of Feb.25:
The New York Title & Mortgage Co. is an affiliate of the Manhattan
Co., Mr. Williams told the Committee, and it organized under the
insurance
laws of New York State. It performs three services, title insurance,
securing loan applications, and selling them as guaranteed mortgages.
It does
not sell unguarantoed mortgages, he explained, and it does not guarantee
those it will not buy. . . .
The great difference between the guaranteed mortgage and the unguaranteed real estate bond, according to Mr. Williams' testimony, is that the
issuer of the latter la only an agent, and out of the transaction when the
bonds are marketed to the public. If the issuing house is large enough,
he stated, it may try to protect the issue; on the other hand, he asserted, the
moment a guaranteeing mortgage is in default, the guaranteeing company
steps forward and makes good the default. For that reason, he continued,
all guaranteeing companies, large and small, use caution and conservatism.
Statistics Are Provided.
Mr. Williams told the Committee that two mortgage guarantee firms in
New York, the Title Guarantee & Trust Co. and the Lawyers Mortgage Co.
are older than his own firm, and gave them some statistics on the business
done by these trade firms. His own company, he said, had more than
$64,000,000 in capital, surplus and undivided profits, making over $9 of
capital funds back of every $100 of guaranteed mortgages outstanding,
a ratio of 1 to 10, which he described as a conservative operating ratio.
The total outstanding guaranteed bonds for which his
company stands
sponsor he gave as in excess of $500,000,000, with an additional
$175,000,000 in guaranteed participation certificates. Many of these, he added,
are on seasoned property, and have gone through two or even
three renewal
periods successfully.
The witness dismissed real estate values in New York City.
He stated
that they had been rising for last 10 years, and had increased
by at least
100%. Last year, he added, there was a decline of some 15 or 20%
An illustration of the classes of investors in guaranteed real
estate mortgage securities, Mr. Williams told the Committee
that his company's issues
are distributed as follows: Insurance companies,
30.15%; savings hanks.
21.94%; trust funds, 5.38%. charitable institutions,
1.88%; churches,
religious and educational Institutions, 7.16%; and
individuals,
Mr. Williams told the Committee in reply to questions that 16.80%•
he does not
believe banks in New York have abused the privilege
of building office
buildings for their own accommodation and to rent to others.
He cited
Instances where such action had been beneficial to the banks concerned.
Branch banking involves the building up of a real estate portfolio by
the
Parent bank, he agreed, but declared that the acquisition of branch
sites
had been financiallY profitable to New York banks. Many
of the buildings
are carried at nominal values in the balance sheets, he
declared, as a result
of their increase over purchase values.
Investment Trust Regulation by United States Urged
by Prof. Ripley of Harvard University—Tells
Senate Banking Committee He Would Have Supreme Court Decide if Companies Are Amenable
to Supervision—Marcus Urges United States Rep-.
resentation in Bank for International Settlements
—Critcizes Liberal Acceptance Policy.
Federal control of investment trusts, with resort to the
United States Supreme Court if necessary to determine
whether or not such trusts are amenable to Government
supervision, was advocated on Feb. 23 before the Senate
Banking Probe Committee by William Z. Ripley, Professor
of Political Economy of Harvard University. Revealing
FEB. 28 1931.]
FINANCIAL CHRONICLE
1525
conditions might change whereby such listing might
some of the unethical practices resorted to in the distribu- trusts upon its beard,
have a decided adverse effect.
tion of security and the methods pursued by banking houses
Speaking of the evils of installment selling, Prof. Ripley agreed that
at times to retain control over industrial, financial and there should be some limitation placed upon the amount of installment
bank could hold in its portfolio. He opposed complete
public utilities corporations, Prof. Ripley, according to the paper that any
prohibition, pointing out that there might be occasions when that would
(from
which
the
Commerce"
of
all
New York "Journal of
prove unwise, as, for instance, where a bank took over the paper of a
foregoing is taken), declared there is a real need to turn bankrupt concern. In such case, the bank might have to throw it upon
the market, causing a loss.
the spotlight of publicity upon the accounts of such concerns.
Asked by Senator Carter Glass (Va.), Chairman of the Probe Committee,
In its further account of the hearing, on Feb. 23, the paper whether he would be willing to say that it is a sound policy to have
investment trusts organized as auxiliaries of commercial and National
quoted says:
Results of studies abroad of American financing were related to the
Committee by Dr. Marcus Nadler of New York University, Research
Director of the Institute of International Finance, who declared that
American investors are now feeling the effect of the activities of some of
the investment concerns which literally solicited the borrowing by foreign
countries in excess of their ability to repay. Dr. Nadler presented to the
committee various recommendations for meeting some of the problems that
have arisen with respect to improving the Federal Reserve and National
Bank Acts.
Wants to Test Constitutionality.
A test in the United States Supreme Court to determine whether ownership constitutes inter-State commerce whereby investment trusts can be
subjected to some type of Federal control, was advocated by Prof. Ripley.
He favors a complete, adequate and honest accounting by investment trusts
as a means of protecting the general public from a character of flotation,
the effect of which may be to deprive them of their savings, and to safeguard corporations whose securities are dealt in by such investment trusts.
Extremely critical of those corporations that take advantage of individual
credulity and of corporate susceptibility, he pointed out that in public
utilities, when relationship is traced back to the holding companies, it is
often found that the latter in effect are investment trusts, not having much
to do with the utilities as such, but placing their security when capital
is needed.
"With them," he said, "we have a most glaring need of intelligent comparable publicity. I think it is of greater need than the regulation of
rates."
He pointed out that the question of constitutionality of any law that
may be passed by Congress is one that should have immediate consideration.
He explained that this matter is dealt with in considerable detail in the
Parker report on railroad holding companies, just issued from the House
Committee on Inter-State and Foreign Commerce. He explained that there
has been no decision of the Supreme Court yet interpreting the examination, which holds that ownership is inter-State commerce. The Court, in
the so-called Northern securities case, he said, refrained from affirming the
point. In the Parker report, he related, the conclusion seems to be reached
that it is necessary to be provided that ownership in some way is more
or less directly affected by inter-State commerce.
Explains Control by Banking Group.
Prof. Ripley explained how a banking group with a limited ownership
of the security of an organization—bank, railroad or other public utility—
is enabled to hold control through a pooling of proxies of street holdings of
other banking groups in a sort of reciprocal arrangement which the witness
likened to log rolling in Congress.
"Complete and intelligent publicity under Governmental control will
have to be provided for within the next few years," he asserted, adding
that otherwise the whole thing will become top-heavy.
Prof. Ripley said lie believed that this would be found beneficial, and
he presented to the Committee a statement that had been prepared by the
controller of the American Telephone dz Telegraph Co. on the subject of
uniform accounts and adequate statistical reports in business. He also
presented a statement by A. W. Page, Vice-President of the company, telling
of the filing of reports with the Inter-State Commerce Commission since
about 1912.
"It has greatly increased the public confidence in its security among
large investors and those who advise small investors, and has prevented
Investigations of Bell system financing by the simple process of providing
more facts currently than an investigation would bring out," said Mr.
Page. "And this is important, for regardless of what the results of an
Investigation are, its being carried on at all has something of the result
on the reputation of a corporation that an indictment has on an individual. In other words, full reporting to the Government by a company
whose affairs are properly and successfully conducted allows it to have
greater credit for that conduct, both with the investing and consuming
public, Than it would otherwise have. This is a great incentive to such
conduct. Conversely, unsuccessful or improper conduct of a company's
affairs would inevitably come to light, and this fact cannot help being a
deterrent to such conduct."
Would Separate Speculation, Investment.
Prof Ripley asserted that what is needed more than anything else is a
clear separation between those businesses which are speculative and those
which are in the nature of an investment. He referred to one concern
which had handled both classes of securities, with a greater proportion at
one time of a speculative character. Publicity of its operations would be
helpful, as in all cases it would emphasize the serviceability of a corporation as an open market for the country's investors.
The witness stated that he favored a requirement that all investment trusts
seek New York Stock Exchange listing, paying tribute to its Committee on
stock loans, expressing the belief that if the investment trusts were made
subject to the exchange requirements as to accounting it would go far
toward correcting unsatisfactory conditions.
"The investment trusts will not list their security as long as the people
are uninformed and they can go through the formality of listing on the
Amsterdam or the Los Angeles Exchanges, or some other place," he said.
Prof. Ripley, asked whether he would favor Federal control of the Stock
Exchange, declared that in the face of the present manifestation of public
spirit by President Simmons and his leading committees there is no need
for the apprehension of Stock Exchange that existed in its relation to the
common people that might have been necessary thirty years ago.
"The New York Stock Exchange aspires to be the great Stock Exchange
of the country—or continue to be as pre-eminent as now it is—and the
Intelligence of those who have been so largely associated with it is high
enough so that they may see that the future of that institution rests upon
Integrity," he asserted.
It was pointed out by Dr. II. Parker Willis, technical adviser to the Committee, that while it might seem very desirable at this time, under present
management of the Exchange, to seek to compel listing of the investment
banks, he said:
"I do not like the idea. One of the cardinal weaknesses of the investment
plan is that when tied up in any way with banking institutions or brokers
it offers a very great temptation to use the trust as a 'waste basket' in
which to place the things that cannot be placed in the hands of the public
successfully."
Nadler Favors Representation in B. I. S.
Now that the Bank for International Settlements is in operation, said
Dr. Nadler, the Federal Reserve Board should have direct representation
upon it, rather than that the interests of the United States are looked
after by private individuals. He explained the transactions passing through
the Bank affecting the affairs of this country, declaring that the Board
should not do indirectly what it could do directly.
Ile was rather critical of the activities of some promotion houses which
solicited business from some of the foreign governments for the disposal
in this country of the security issues of the latter when the resources of
the governments in question were not sufficient to carry the obligations.
He indicated moratoriums where it has not been possible to curtail
expenditures enough to meet interest payments. He endeavored to make
it very plain that all security houses were not engaged in that practice.
Off the record, he discussed financial conditions in Germany, withholding
his comment from publication, but it was indicated that he interested his
listeners with his recital.
He was critical of the policy of the Federal Reserve Bank on occasions
when an effort was made to assist the Bank of England open market purchases of security, materially easing up the situation here. He said that it
would have been far better had the banks entered the London market and
purchased acceptances.
Soya Acceptances Increased Too Fast.
The volume of acceptances outstanding in this country, in the opinion of
this witness, has increased too fast and at the present time is greater than
at any time in Great Britain. He thought that if the Reserve Banks had
not taken the position that at all times they had to support the acceptance
market, the volume would not have been so great. Answering questions
from the Committee, Dr. Nadler said that it was hard to say the extent to
\stitch the acceptance privilege had been abused, but that he did know of
transactions in silk and furs where there were five or six acceptances
outstanding.
Dr. Nadler does not believe in domestic acceptances, particularly upon
goods in warehouses. He agreed that such acceptances might lead to commodity price inflation, lie was critical of the former policy of the New
York Reserve Bank in announcing in advance the extent to which it would
enter the market in the purchase of acceptances.
"That," suggested Senator Carter Glass, "is a system of inviting loans,
instead of responding to credit demands."
He did not consider the proper use of the open market policies of the
system to regulate the flow of credit as intended to be governed through
the use of the rediscount rate. He declared that operations in the New
York market are reflected abroad, since it is one of the most important
money centers in the world and a clearing house for international transactions. The prime responsibility of the Reserve Banks is toward domestic
credit, but, he said, at the same time the system cannot overlook conditions
abroad. Reverting to the matter of foreign issues, he said that it was his
opinion that some of the foreign governments borrow too much.
Would Make Directors, Officers Responsible.
The liquidity of small banks and of savings banks would greatly increase
if there were a central mortgage bank for urban real estate, which could take
such mortgages held by the banks and on this basis issue its own bonds, the
witness said. This would create a ready market for urban mortgages, in
his opinion, and would, in times of stress, enable the banks, commercial
as well as savings, to convert their mortgages into cash. Such an institution, in order to accommodate savings banks, he added, might also be
authorized to discount for the latter prime security.
Dr. Nadler recommended a law which would hold bank directors awl
officers responsible in the first instance for bank failures. This, he asserted,
would result in conservative banking. Double liability has lost a good deal
of its effectiveness because of the purchase of shares by corporations, either
affiliates of the banks or holding companies. Failure of the bank is, in
most cases, he explained, accompanied by the failure of these corporations,
thereby making the double liability clause to s large extent worthless.
A law forcing corporations directly or indirectly interested in the management of the bank or closely affiliated with the bank, holding stocks
of such a bank, to set up a reserve against their double liability would
remedy the situation, he claimed. Exception may be made in case of
corporations known to the Comptroller of the Currency to be solvent.
Prof. Nadler approved the segregation of savings or thrift accounts
which are evidenced by savings pass-books, from other deposits. He would
not 610 cover all time deposits, however.
Suggests Regulation of Rediscounting.
Discussing branch banking, he pointed out that resort to this would
not prove a panacea against bank failures. Failure of banks with a string
of branches operating in one district would cause disaster to the entire
district. Branch banking also tends to create a monopoly of banking business In certain sections of the country. It also would restrict commercial
credit.
"To prevent Reserve credit from being used for speculative puixs
there are a number of possibilities," he advised the Committee. "It can
be accomplished by imposing on Reserve Banks the duty to exercise
qualitative control and to refuse the rediscounting of eligible paper for
banks which carry too large a volume of security loans; by fixing by law
the total amounts of loans which a member bank may make for the purpose
of carrying security, either by fixing the total amount of such loans in
relation to capital and surplus of the individual bank or by fixing the
total amount outstanding as of the day when the law comes into force and
by taking the maximum amount due a certain period—any bank which has
1526
FINANCIAL CHRONICLE
exceeded this limit should not have the privilege of rediscounting with a
Federal Reserve Bank."
[Vol.. 132.
Competition and a gradual change of attitude of bank managements
toward the public as contrasted with the old method of icehouse banking,
have, unfortunately, I think, gravitated in making good will a fetish and a
Governor Talley of Dallas Federal Reserve Bank De- detriment rather than an asset. Many of the ills to which banking is
to-day an heir have been brought on by the banks themselves
and the
clares Banks Responsible for Loans of "Others"— anxiety about good will is not the least item
in the source of our troubles.
Certainly we must realize that no one institution can expect to enjoy an
Calls Such Accounts a Factor in Recent Specuunlimited volume of business, nor can any institution undertake successfully
lation.
to become a party to banking transactions with those who have no real
Responsibility for the existence of a large volume of need for banking facilities. We can neither undertake to lend money
to
so-called "loans for others" as a factor in recent speculative everybody who lives in the community just b.-cause of that fact, nor can
we proceed upon the principle that one dollar starts an account, and
activities was placed partly on the large banks of the watch us
grow.
country by Lynn Talley, Governor of the Federal Reserve
Growth of Practice Traced.
Bank of Dallas, in an address before a group meeting of
There is much current discussion about the evil effects of the so-called
the Texas Bankers' Association in Fort Worth, Feb. 23. "loans for others" on the New York Stock Exchange, how and why did
A Dallas dispatch to the "United States Daily," in thus they come into existence in such enormous volume, and now attention is
being directed toward devising some method by which they can be prereporting him, further indicates as follows what Governor vented in the future. As to how and why they came into
existence as a
current factor in speculation, credit expansion and consequent inflation,
Talley had to say:
the answer is easy. One or more banks who knew that their competitor
"One or more banks who knew that their competitor was carrying large was
carrying large free balances for corporations and individuals merely
free balances for corporations and individuals," Governor Talley told the solicited
these corporations and individuals with the statement that if
Texas bankers, "merely solicited these corporations and individuals with the accounts
were turned to them they would be glad to make loans on
the statement that if the account were turned over to them they would call for them. When these influences
of competition became cross currents
be glad to make loans on call for them. When these influences of competi- the larger banks
simply found that they had a bear by the tail and were
tion became cross currents the larger banks simply found that they had forced to adopt
some measures to protect themselves. The initiation of
a bear by the tail and were forced to adopt some measures to protect them- the charge for
the service and the successive increase did not diminish
selves. The initiation of the charge for the service and the successive the problem.
increase did not diminish the problem."
The personal equation in banking relations is most easily converted from
Mr. Talley's address follows in full text:
an asset into a liability and a positive detriment. Unlees a loaning
officer of a bank can completely divorce the personal equation, either in
Banking in Business.
making loans or in demanding payment of loans already made, it is not
The facetious quality of the title of the remarks which I have been unlikely that he will have some sad days ahead. This statement is of
invited to make on this occasion probably indicates that the subject was course more applicable to the bank in the smaller cemmunity than in
chosen upon impulse. I shall have to confess that the conjecture in this the city.
direction is correct. The second inquiry over the telephone by our
Friendship Contracted4 With Business.
esteemed association secretary, to ascertain for program purposes what
I think I can fully appreciate that when we meet our friends in the
subject had been selected, caught me in a moment of vexation.
I had been, just a few moments before, advised of the sudden demise Post office when we go after the mail, when we see them at church on
of one of our members of average size and good reputation, which, in my Sunday morning, at the lodge on Thursday evening, and at the soda founopinion, had resulted in circumstances that were wholly controllable. tain at four o'clock every afternoon, it is extremely difficult sometimes to
While I do not propose to make this incident the subject of this discussion, compose a letter to them in which it is stated that their note becomes
I am willing to admit that I find myself in somewhat of a dilemma. due and payable at the bank on the 13th instant and that payment is
Since the subject "Pussyfoot Banking" has been selected and announced anticipated and requested accordingly. Especially is this true if we happen
through the means of your program, I realize that it will be highly incon- to know that his oldest son had the car out the previous Friday night,
turned it over in a ditch and has been in the hospital ever since.
sistent for me to pussyfoot about discussing it.
In the same circumstances and unless the personal equation is completely
Banking is a secondary rather than a primary phase of our business
activity. Banking activity follows and is a reflection of commercial, agri- divorced in forcing our judgments, we are inclined to be backward and
cultural and industrial activities rather than their motivating force. To overcourteous in not ascertaining to the fullest extent at the time the
illustrate—if there is no business activity and no accumulated liquid wealth loan is made, the ability of the borrower to pay at maturity. We can easily
In a community, there is no opportunity for the existence of a banking develop a hesitancy about prying too fully into a borrower's personal
affairs, or in fact to delve deeply enough into the intimacy and privacy
institution.
of his businem affairs. It has become trite to say that the best loans are
Banks, therefore, facilitate business progress rather than cause it. This
is not saying that a banking institution, through the ability and courage collected a* the time they are made, but how many of us really satisfy
of its management, should not be a factor in community enterprise, but ourselves at the time we make the loan that the borrower's plans in
reference to the use of our funds are sufficiently sound and that he has
it should be a factor of control instead of a controlled factor.
analyzed sufficiently well, himself, the probabilities of meeting his
obligation.
Major Problems.
Naturally what I have to say publicly before banking groups is drawn
Loan Complexes Analyzed.
largely from a close contact and a daily dealing with banking problems.
This leads me to mention what we might term the dulling of the loan
This should account for a certain bluntness of expression to a major term. We have become so accustomed to the use of divisions of the
extent. A Federal Reserve Bank, as originally designed, was set up in calendar for indicating the termination of business transactions that we
Its main purposes to extend adjustment, seasonal or emergency credit, and have become immune to their real import. We are no longer impressed
to provide an elastic currency. In the last analysis it is, however, simply with the fact that 90 days means 90 days, or that Oct. 1 means Oct. 1, and
a banking institution, and as a matter of fact its principal stock in trade loan terms in the difinition of their duration have lost their efficacy and
is banking problems.
mean nothing to us. Perhaps the best way for a loaning officer to gain
The outstanding cause of the major problems we find in our experience assurance in advance that a loan will be liquidated at maturity is
to make
falls in two main classifications—over-lending and weak collection policy. the applicant prove to him how it can be done. Sometimes if we do not
Either of these categories embraces what seems to be an aversion to a gird up our courage to a high degree it is quite possible to
acquire an
low volume of loans at any time, and I may say that within our observa- inferiority complex. There is a certain relativity about our
contracts
tion this aversion seems to be largely unconscious.
that must not be ignored. I have seen some pretty sad experiences grow
I am fairly well convinced that the majority of loans resting on the out of the circumstance of the failure of a loaning bank
officer to talk to
personal judgment of bank managements and upon the good intentions and Mr. "Most-Prominent-Citizen" about a prospective
line of credit or about
faith of the borrower, are good at the time they are made, but far too the collectien of a line already in the bank, in
the demeanor of the
many of them are allowed to drift, or run with many renewals, with too proverbial Dutch uncle.
infrequent demands for payment, until they become either frozen or actually
By and large, too much responsibility is thrown on a single person
bad and uncollectible in the hands of the bank. Whether the cause for in the bank's management. Ofter the management is delegated to him
and
this phenomenon, and it is that, is psychological or otherwise some he is presumed to be the sole arbiter in the bank's affairs. Imagine the
attribute of human nature, I am not in position to prove, but I am predicament of such a person whose opportunity to earn his
living and
inclined to think that it is. Probably the bank manager feels a reluctance that of his family lies largely within his incumbency when he knows that
or a real timidity about indicating to a borrower that his favorable personal the line of Mr. A., who is the most influential director in the bank, ought
judgment or that of his loan ("committee, evidenced by taking the loan to be collected. He may mention it to the other directors, but the monkey
in the first instance, has undergone a change and that a demand for is on his back just the same.
payment would be an evidence of that fact.
The inverse relationship between officers and directors is often as well a
cause of much grief in the history of certain institutions. Row often
Loaning Policy.
directors are sought for their influence in the community and the benefit
Another phase of this division of our discussion might be defined as a of their business to the bank rather than because they have
a direct
consciousness of the limited opportunity to relend the funds in the financial interest and a desire for gain in the business. In such circumsame community. Once a bank has determined how many people there stances directors either do not realize what their responsibilities are or
are in the community to whom the bank can afford to make loans, and they treat them too lightly. There conies a time, then, too frequently,
discovers the dollar volume of such loans, and the total becomes fairly when they are rudely awakened (and this sometimes occurs literally)
well represented in the note case, he becomes more or less aware of his by the examiner revealing to them a condition of which they had no
Inability to relend these funds should any large portion of his selected knowledge and which they had not dreamed, just before they were rudely
clientele voluntarily repay their loans or should he request them to do so. awakened, could never transpire.
Such a policy, however, can only lead us to the conclusion that once a
Negligence Charged.
bank has loaned all of its loanable funds that it can safely lend in its own
community in the original instance, then it is through and it has merely
I do not refer directly to the unfortunate incidents of defalcations, but
acquired a stable inventory as represented by its note case.
have in mind many situations that arise through directors' negligence—
The value of its note case, therefore, depends upon the degree of success periods when the bank is over-loaned, deposits have declined and a badly
and the maintenance or the increase in its borrowers' original financial overextended condition results. In situations like this the directors themresponsibility as a group. These observations lead me to say, therefore, selves frequently owe their own banks as much or more than the bank is
that we should not pussyfoot about making our collections, both when we borrowing, and it also happens in such cases that directors' lines are
deem it wise to do so, when we know in advance that our deposits will actually increased on the grounds that the obligation is solvent, in fact,
decline, and also follow such a practice as a fundamental banking policy.
may be liquid, but nevertheless adds to the overextenelon and the embarThe personal equation, particularly in our smaller communities, is a most rassment of the managing officer if he has not the courage and frankness
Important factor. I should be foolish to attempt to deny that personal to reveal the situation.
equation is the meet important factor in the promotion of good will toward
Many, many times have I noted that a serious problem could have been
the local bank but good will should not be separated from community averted if the managing officer had had the courage to call his directors
respect and self-respect must not be sacrificed to obtain it.
together, frankly explain the true situation and seek advice and assistance.
http://fraser.stlouisfed.org/
/NMI Reserve Bank of St. Louis
Federal
FEB. 281931.]
FINANCIAL CHRONICLE
Frequently we have managing officers come to us in situations where it is
clearly apparent that directors have not been taken into full confidence
and where problems could have been avoided had that procedure been
followed. Sometimes when it is too late the directors must be called in
and though it is a human frailty that we can fully appreciate, much of the
time of consultation in an effort to find the best course to follow is taken
up in a defense of previous action and in blaming results on conditions.
Opportunity for Contact.
Gatherings like this have many advantages. The principal advantage, I
think, is the contact and the opportunity to find Out something about the
other fellow's situation. The public has no mercy on a bank officer, but
takes its itnposition upon him as a matter of course. The average bank
officer is so deeply steeped in his current transactions and from a desire
to decrease expenses in the face of dwindling opportunities and profits,
that he undertakes more than he can accomplish efficiently and does not
have time to look around and see what is happening and watch the effect
of varying conditions on different institutions in his same class.
I feel sure that many of our visitors come to us under the impression
that all banks are more or less in the same situation and condition in
good times and in bad times. There is no greater fallacy than this. If I
had asked many of you in this group, before I sent out a recent circular
giving the information, to estimate the amount of indebtedness of the
member banks in this district for borrowed money on Dec. 31, the variation
in the answers would have been amazing, I am sure.
I have tried this out in unfavorable periods from time to time when I
knew the answers. On Dec. 31 last, according to the compilation of call
reports, the member banks in this district owed $6,183,000, as representing
their total indebtedness for borrowed money on that date. Of this amount
$4,342,000 was owing to the Federal Reserve Bank, and, regardless of how
heartbreaking conditions have been both before and since that date, and
regardless of the great disappointment we have suffered that there has
• been no discernible upturn, it will probably surprise you to know that
borrowings have not materially increased.
Ratio of Loans.
The ratio of loans to deposits on Dec. 31 for the entire district was 63%.
I mention this because I know there are many who think that some quirk
of fate, ill luck or physical condition is an adequate explanation for their
own ratio of loans to deposits being 126%. I realize that I am digressing,
but what I am trying to get over is the positive necessity for courage in
facing facts and acting accordingly.
Quite another phase of pussyfoot banking is a failure to take losses
currently, a failure to admit to ourselves cur own shortcomings, and a
failure to realize that when we are fooling ourselves we are at the same
time fooling the public, and it is more or less axiomatic that we will
stay fooled longer than the public will. In this same division of introspection may be included an inclination to depart from fundamentals in
order to create a favorable public reaction or a favorable attitude on the
part of stockholders.
The payment of dividends by a bank with unadjusted losses and doubtful
assets in its portfolio is nothing short of reprehensible. I know that there
are a lot of us this year who are not subject to that delightful application of paying dividends and I do not think there will be any great
amount of agitation at the end of this year about the division of earnings
of the Federal Reserve Dank with its members, but I do have in mind
the lack of courage that is all too prevalent, to omit dividends when they
are not earned.
The too frequent protests to the examiner that a reduction in surplus
will have a bad effect on the public and yet go on and publish statements
of doubtful accuracy for public consumption, is a kind of pussyfooting
that brings its bad reactions.
The quality of management must at least include not only a knowledge
of banking fundamentals and dismiss the fallacy that banking principles
vary with the point of location, but must also include those stalwart qualities of courage and the power of conviction. Friendliness and frankness
are found under the same letter in the dictionary. In the banking business,
as in no other vocation, they much go hand in hand. The milk of human
kindness is a Christian virtue, but responsibility to depositors is a duty
that transcends all else in the work that we have chosen.
1527
and approved by the American Bar Association, with slight modifications
suggested by local conditions and circumstances.
Provides Published Notice
The bill provides for a 25-day published notice before foreclosure
sale, and for a six-months' redemption period after sale. As originally
drawn, the redemption period was restricted to 15 days, but on the
motion of Senator Bratton (Dem.), of New Mexico, the bill was
amended to lengthen the period to six months.
The bill further provides for limitation of fees, for notice to all interested parties, and for a certain, definite legal procedure protecting alike
the rights and interests of borrower and lender, the report says. Particular provision is made against fraud and misappropriation by trustees,
"the need of which has been demonstrated recently in the District," the
report says.
With regard to the bill (S. 3491) for the prevention of fraud in
the promotion or sale of stock, bonds, or other securities sold or offered
for sale within the District, the report of the Investigating Committee
said that their survey developed the fact that within the last six or
seven years in the District "so-called securities" in an amount approximating $100,000,000 have been issued, "a very large proportion of
which are of very dubious value, and in some cases utterly worthless."
Sales Are Investigated
The report further charged that in the sale of many such securities
there has been gross misrepresentation of values and concealment of
essential facts as to value amounting to fraud, criminal in character.
The bill passed by the Senate Feb. 21, according to the Committee
report, is likewise substantially the same as the Uniform Sale of Securities Act drafted by the National Conference of Commissioners on
Uniform State Laws, approved by that body in October, 1929 and
approved by the American Bar Association, with certain minor modifications to meet the conditions in the District.
Passage of this bill, the report said, will result in prevention of the
sale of worthless securities, not only in the District, but elsewhere, inasmuch as securities originating in the District are sold widely outside.
President Hoover Signs 44
, -Hour Postal Bill—Additional
Revenue Needed ttlk Meet Increased Expenditures of
Department.
On Feb. 17 President Hoover signed the bill fixing working hours for postal employees at forty-four hours per
week. Announcing his approval, he said he intended to
send to Congress a recommendation that a commission or
the regular committees of Congress investigate means of
increasing post office revenues. The President stated:
"At the present time it appears that the Post Office Department will
have a deficit of approximately $100,000,000.
"This is largely due to increase in pay and the reduction of working
hours of postal employees."
It is only just to the country, he said, that there should
be some means of increasing postal revenues to meet the
increased expenditures. An item with reference to the
passage of the 44-hour bill by Congress appeared in our
issue of Feb. 14, page 1154.
Notice of Forthcoming Treasury Issue.
Notice of a forthcoming Treasury issue was sent as follows, on Nov. 20, to banks in the New York Fedenal Reserve
District by Governor Harrison of the Federal Reserve Bank
of New York:
FEDERAL RESERVE BANK OF NEW YORK.
Fiscal Agent of the United States.
(Circular No. 1021, Feb. 20 1931.]
U. S. Senate Passes Bills Regulating Security Issues—DeNew Treasury Issue.
signed to Apply in District of Columbia On ForePreliminary Notice of Offering and Methods of Filing Subscriptions.
closures, Stocks and Bonds. '
To All Member Banks, State Banks, Trust Companies and Savings Banks sn
the Second Federal Reserve District and Others Concerned:
Legislation designed to "prevent in the future grave
From advices received from the Treasury Department of the United
abuses which now exist" in the District of Columbia rethis bank is enabled to transmit to banking institutions in this
garding the foreclosing of mortgages and issuance of States,
district the following information:
stocks, bonds and other securities, was passed by the Sen1. A Treasury offering may be expected on or about Monday, Mar. 2.
ate Feb. 21. The two bills (S. 3489) and (S. 3491) now
2. The subscription hooks may be closed by the Treasury without
go to the House, said the "United States Daily" of Feb. advance notice, and therefore,
3. Each subscribing bank, upon receipt of information as to the terms
24, from which the following is also taken:
mails or by
The two bills were sponsored by Senator Blaine (Rep.), of Wisconsin, of the Treasury offering (either in the press, through the
subwho drew them as a result of evidence gathered by the subcommittee on telegram) should promptly, file with the Federal Reserve Bank any
Insurance and Banks of the District of Columbia Committee, of which he scriptions for itself and its customers. This is important, as no guarantee
was chairman, under authority of a resolution passed by the Senate June can be given as to the period the subscription books may remain open, and
subscribing banks, even before receipt of official subscription blanks, may
4, 1929.
The Committee was authorized to investigate (1) the operations of real file their subscriptions by telegram or by mail with the Federal Reserve
estate dealers in the District, (2) the issuance and sale of securities in Bank. Any subscriptions so filed by telegram or mail in advance of
the District, and (3) the foreclosure of mortgages or deeds of trust receipt by subscribing bank of subscription blanks furnished for the parin the District.
ticular issue should be confirmed immediately by snail, and on the blank
Regulate Real Estate Brokers
provided, when such blank shall have been received.
A companion bill (S. 3490) designed to define, regulate and license
4. If the terms of the offering when announced provide for both cash
real estate brokers and salesmen, was passed by the Senate May 22, 1930, subscriptions and subscriptions for which payment may be tendered in other
and is now pending before the House Committee on the District of securities, the subscribing bank should prepare its subscriptions in such
Columbia.
manner as to indicate the method by which it proposes to make payment
In recommending the two measures passed by the Senate Feb. 21, and the respective par amounts of securities, if any, to be tendered in
the Senate District Committee reported that the basic facts with ref- Payment.
erence to foreclosures of mortgages in the District are (1) the District
Classification of Subscriptions, a:0.
is practically without laws providing for an orderly, regular form or
Bank Customers' Subscriptions.—With regard to issues, subscriptions to
procedure for foreclosure of mortgages or deeds of trust, (2) that the
purpose of allotment shall be
length of notice given to a mortgage debtor, the time, place, terms of which the Treasury determines for the
whether or not payment is to
sale and compensation of trustee are all matters left to the discretion considered as on a cash basis irrespective of
following
classification will be
of the trustee, (3) that no period of redemption from a foreclosure sale be made in cash or in securities, the
customers, stating the number
of
account
required of subscriptions made for
is allowed to the mortgagor or grantor in a deed of trust.
Embodied in the mortgage bill, according to the report, are the main of subscriptions in each class.
foreclosure Provisions of the Uniform Real Estate Mortgage Act, drafted O'nss A—gul-weriptions for $1,000 or less for any one subscriber;
1,000, but not exceeding $ 10,000;
.by the National Conference of Commissioners on Uniform State Laws Olsas B—Subscriptions for over $
1528
FINANCIAL CHRONICLE
Class C—Subscriptions for over $ 10,000, but not exceeding $ 50,000;
Class D—Subscriptions for over $ 50,000, but not exceeding $ 100,000;
Class E—Subscriptions for over $ 100,000, but not exceeding $ 500,000;
C/lass F—Subscriptions for over $ 500,000, but not exceeding $1,000,000;
Class 0—Subscriptions for over $1,000,000.
Where the maturing securities are not by the instructions accompanying
the offering given a preference they shall be treated as cash and such
subscriptions to be paid for in securities should be included in the
classification.
Bank Subscriptions.—A subscription for a bank's own account should
not be included in the above classification of subscriptions for account of
customers but should be clearly indicated as for the bank's own account
and in addition to subscriptions for customers.
Subscriptions Not Classified.—Where under the terms of an offering or
under instructions accompanying an offering, the Treasury agrees to allot
new securities in full for any of its securities maturing on the date of the
new issue or an any later date, subscriptions to be paid for in such
securities should not be classified.
Application Forms to be Furnished.
When the terms of the offering are announced, notice thereof, together
with subscription blanks, will be mailed promptly by this bank to banking
confirmed immediately either by letter or on subscription blank, setting
reason be delayed in reaching such institutions this bank will nevertheless
receive subscriptions either by letter or telegraph. It is suggested that
subscriptions be promptly transmitted to this bank.
If it be found necessary to telegraph subscriptions they should be
confirmed immediately either by letter or on subscription blank, setting
forth the classifications indicated above and method of payment, and
clearly stating that the confirmation is not an original subscription so that
duplication may be avoided.
Subscriptions cannot be received until the terms of the offering are
publicly announced by the Secretary of the Treasury.
GEORGE L. HARRISON, Governor.
President Hoover Signs Deportation Bill—Measure Provides
for Handling Violators of Narcotic Law.
The bill (H. R. 3394) to provide for the deportation of
an alien convicted in violation of the Harrison narcotic
law was enacted into law with the signature of President
Hoover Feb. 18. "There can be but little doubt but that
the illicit traffic in smuggled dope is on the increase, in
spite of the efforts of the Federal narcotic enforcement
officials," the report accompanying the bill in the House
stated, according to the "United States Daily," which
quoted further from the report as follows:
"There are a number of large international dope rings operated in
the United States, backed by ample capital and guided by shrewd and
unscrupulous minds.
"The problems of narcotics is international in scope and all that the
United States can do is to enforce its laws rigidly against the smuggling
of these evil drugs and ask for the co-operation of foreign governments
in controlling the overproduction and sale for export of high power
manufactured habit-forming narcotics.
"The crime wave which has assumed such terrible proportions in America
is directly connected with the use of smuggled heroin, cocain and other
vicious habit-forming drugs. The small size of the packages containing
valuable shipments of prepared narcotics makes concealment easy for
clever international smugglers."
One.third of all the inmates of our Federal prisons are addicts or
violators of our narcotic laws. It is estimated by reliable authorities
that 50% of the crimes of violence are attributable to the use of some form
of drugs, according to the report.
"Deportation is a proper and effective weapon against aliens who violate
our laws and relieves the United States from the cost of maintaining them
in our already crowded jails," the report concludes.
Senate Committee Favorably Reports Bill Providing
for $8,000,000,000 Liberty Loan Refunding Bonds.
The bill (H. It. 16111) amending the Second Liberty Bond
Act, so as to increase the borrowing limit of the Treasury
Department from $20,000,000,000 to $28,000,000.000 was
favorably reported to the Senate, Feb. 25, by its Committee
says:
on Finance. Noting this, the "United States Daily"
An amendment to the bill was made, however, by elimination of
could exempt new
language stating that the Secretary of the Treasury
profits taxes if and when
issues from surtaxes and excess profits and war
of Utah, Committee Chairhe should so prescribe. Senator Smoot (Rep.),
the Secretary already had
man, said this action had been taken because
of language availed
repetition
mere
the
and
the power to take such action
nothing.
Liberty Bond Act which
'The bill amends the language of the Second
which the Department could
had placed the limitation on the amount
borrow in its refinancing operations.
[Vot. 132.
by a vote of 111 nays to 100 ayes. Mr. Hull moved to recommit the bill
to the Committee on Ways and Means with instructions to strike out
Section 2, but this motion was defeated by a vote of 161 ayes to 199 nays.
The bill then passed by viva voce vote and was sent to the Senate.
Exemption Clause Explained.
Representative Hawley (Rep.), of Salem, Ore., Chairman of the House
Committee on Ways and Means, brought the bill up for consideration.
He pointed out that its purpose is to extend the limit for the issuance
of bonds in the Second Liberty Loan Act from $20,000,000,000 to $28,000,000,000, and in order that the Government might not be put at a
to
disadvantage in competing with State and municipal bonds, the bonds
be issued will be tax-exempt, he said.
"It is impossible to retire these bonds as they come due," Mr. Hawley
said, "and the provisions of this bill will merely allow the Treasury
Department to retire them."
The tax exemption has been authorized by law in cases of issues of
Treasury bills, Treasury certificates of indebtedness and Treasury notes,
Mr. Hawley said, adding that there is no valid reason apparent why the
same privilege should not be extended to issues of bonds.
"There is on the market an enormous amount of tax-exempt bonds that
have been issued by the States and municipalities, and many of them are
gilt edge," Mr. Hawley said. "The only way that the Government can
go into this market and not be at a disadvantage is to make them taxexempt also."
Interest Decrease Expected.
The amount of First Liberty Loan bonds outstanding, which are callable
in 1932, is $1,933,545,750 face amount, Mr. Hawley pointed out, and
Fourth Liberty Loan VA% bonds, callable in 1933, aggregate $6,268,241,150. Re added that while it cannot be foreseen what the conditions
will be when the refunding operations are undertaken, it is expected that
the result will be a net decrease in interest costs.
In opposing Section 2 of the measure, Mr. Hull said it would be a
radical reversal of the policy of the Federal Government to repeal and
from
abandon die policy of imposing surtaxes bn the interest derived
Liberty bonds.
"The proposed repeal of the surtax on the interest frail Liberty bonds
is a body blow to the whole doctrine and policy of graduated income taxation in this country," •Mr. Hull said. "The owners of large wealth are
just as satisfied to receive tax relief by the repeal of this surtax provision
as they would be to secure corresponding reduction in the graduated
rates of surtaxation. The object of either course is definitely and
avowedly to reduce the tax burdens of those whose incomes are large enough
to subject the owners to the graduated surtax rates."
Quotes Mr. Mellon.
Mr. Hull said the Secretary of the Treasury, Andrew W. Mellon, in 1923
had opposed tax-exempt interest on Liberty bonds, when he (Mr. Mellon)
said "that the continued issuance of tax-exempt securities is building up
a growing mass of privately-held property exempt from all taxation, and
that tax exemption in a democracy such as ours is repugnant to every
constitutional principle, since it tends to create a class in the community
which can not be reached for tax purposes and necessarily increases the
burden of taxation on property and incomes that remain taxable."
"Tax exemptions of property in the United State are growing by leaps
and bounds," Mr. Hull said. "According to census figures the true value
of real property and improvetnents exempt from taxation rose from
$6,800,000,000 in 1904 to more than $20,000,000,000 in 1922. The tax
wherein
exemption policy is inevitably driving this nation into a condition
there will arise a great idle class living on tax-exempt income," he added.
Says Section 2 Necessary.
member of
Representative Frear (Rep.), of Hudson, Wis., a majority
had voted
the House Committee on Ways and Means, said the Committee
bill
unanimously to report the bill favorably. He said Section 2 of the
fair chance,
Is necessary in order that the Government bonds might have a
compete
not only with State tax-exempt bonds, but also that they might
he is
with the industrial bonds now on the market. Mr. Freer said
securities,
tax-exempt
on
live
opposed to creating a small group who will
but such a step as the section in the bill is necessary at this time.
Representative Schafer (Rep.), of Milwaukee, Wis., said he favored the
Hull amendment, since under the provisions of the bill not only the
$8,000,000,000 to be issued would be tax-exempt, but also those bonds which
have been Issued up to this time. "Such exemption would certainly give a
nice Christmas present to many who now hold large blocks of Liberty
bonds," 'Mr. Schafer said.
Mr. Hawley said that this would not take place under the provisions of
the bill, but in order to protect against any misinterpretation, he offered
an amendment to the bill, which included the words "hereafter issued."
His amendment was adopted without a record vote.
Representative O'Connor (Rep.), of Tulsa, Okla., spoke briefly In
support of Mr. Hull's amendment. "The principle of graduation of incomes
Is at stake," Mr. O'Connor said, "and either this principle is wrong or
the bill with Section 2 in it is wrong."
Representative Eaten (Rep.), of Pittsburgh, Pa., a member of the
Ways and Means Committee, also supported the tax exemption provision
In these bonds.
Text of Measure.
The bill follows in full text:
Be it enacted, ke., that Section 1 of the Second Liberty Bond Act, as
amended (Public, Numbered 43, 120, and 192, Sixty-fifth Congress,
Sept. 24 1917, April 4 1918, and July 9 1918, respectively), is hereby
amended by striking out the figures "$20,000,000,000" and inserting in
lieu thereof the figures "$28,000,000,000."
Sec. 2. That Section 7 of the Second Liberty Bond Act, as amended
(Public Numbered 43, Sixty-fifth Congress, Sept. 24 1917), is hereby
amended by adding thereto the following sentence: "Bonds authorized
by Section 1 and certificates authorized by Section 6, of this Act, as
amendA, hereafter issued shall be exempt from graduated additional
income taxes, commonly- known as surtaxes, and excess profits and war
profits taxes, now or hereafter imposed by the United States, upon the
income or profits of individuals, partnerships, associations, or corporations,
if and when the Secretary of the Treasury shall so prescribe in connection
with the issue thereof."
On the other band, an Associated Press dispatch from
Washington, Feb. 25, to the New York "Evening Post"
notes the approval of -the House bill by the Senate Committee on Feb. 25, and states that the bill, which recently passed
issued under the martsthe House, would exempt any bonds
war profits taxes.
and
profits
excess
ure from surtaxes,
on Feb. 20, was
House,
the
by
bill
the
of
passage
The
1350. In giving
page
ago,
week
a
of
Indicated In OUT issue
the "United
House,
the
by
passed
as
bill
the
of
Over President Hoover's Veto, House and Senate Pass Bill
the text
say
to
regarding
following
the
had
Increasing Loan Basis of World War Veterans' Service
States Daily" of Feb. 21
body:
Certificates (Soldier Bonus).
the course of the bill in that
would have stricken out Section 2 of
the fact that President Hoover vetoed on Feb.
An amendment to the bill which
Despite
tax-exempt was offered by Representative
the bill, making the bonds
was defeated after considerable debate
Hull (Dem.), of Carthage, Tenn., and
26 the so-called Soldier bonus bill, the measure has been
FEB. 28 1931.]
FINANCIAL CHRONICLE
1529
placed on the statute books through the action of the
Five New Jersey Republicans, Representatives Lehlbach,
House
Ackerman,
and Senate in overriding the Presidential veto. The bill Perkins, Fort and Eaton, voted to sustain
the veto.
The other seven members of the Jersey delegation, Representat
was passed by the House on Feb. 26 over the President's
ives
Bacharach, Wolverton, Hoffman, Seger and Hartley, Republican
s, and Auf
veto by a vote of 328 to 79, while the Senate yesterda ter
Heide and Mary T. Norton, Democrats, voted to override the veto.
y
(Feb. 27) passed the bill over the President's veto by a
Of the 328 members of the House, who voted to override the
veto, 179
vote of 76 to 17. The President's veto message, sent to the were Republicans, 148 Democrats and one a Farm-Laborite. The seventynine who voted to sustain the President are all Republicans.
House on Feb. 26, is given in full elsewhere in our issue
The thirty-four Republicans who shifted position so
as to sustain the
today. The bill, which increases the loan basis of adjusted President's veto were Representatives Aldrich,
Andrew, Bacon, Beers,
Blackburn,
Bolton,
Chalmers,
service certificates of world war veterans, came before the
Cole, Dallinger, Dickinson, Ellis,
Golder, Graham, Hale, Hudson, Johnson of Washington, Kendall, Free,
President on Feb. 20 following its adoption by the House rell,
KorLangley, Lehlbach, Letts, Loofbourow, Martin O'Connor of Oklahoma,
on Feb. 16, and by the Senate on Feb. 19. As was stated Reece, Reed, Seiberling, Stalker, Swick, Vestal,Wason and
Wigglcsworth.
The six Republicans who had not voted on Feb. 16 but
in our issue of a week ago, page 1338, both Speaker Longwho today
worth of the House, and Vice-President Curtis signed the voted to sustain were Representatives Beedy of Maine, Eaton of New
Jersey; Watson of Pennsylvania, Johnson of South Dakota, Taber
of New
bill on Feb. 20. The President at that time indicated that York and Underhill of Massachusetts. Thirty-nine members
voted against
he would be ready to act on the bill the middle of this week the measure originally.
and it was at the same time announced that it was the
From the "United States Daily" of Feb. 27 we take the
purpose of the President to veto the measure. In his veto following:
Discussion in House.
message addressed to the House on Feb. 26, the President
The President's message was laid before the House by Speaker Longsaid: "I regard the bill under consideration as unwise
worth (Rep.) of Cincinnati, Ohio, after the passage of the oleomargarine
from the standpoint of the veterans themselves and unwise bill.
from the standpoint of the welfare of all the people." He
Representative Tilson (Rep.) of New Haven, Conn., majority leader
noted that when the bonus act of May 19, 1924 was passed, of the House, explained his reasons for voting against the hill. He said
he would support a bill that would enlarge the loan facilities to those
"it was upon the explicit understanding of the Congress veterans
who are in need and out of employment. He urged
the
that the matter was closed and the Government would not House sustain the veto, adding that if his suggestion be carriedthat
out he
would
immediatel
y
move
House
that
the
suspend
the rules and pass a
be called upon to make subsequent enlargements." He
similar bill to the one under consideration, but modified by a proviso to
also said:
apply its benefits only to veterans who are
of
The total "face value" of the outstanding certificates today after
paying
the sums due of less than $50 and payments in full to
dependants is
$3,426,000,000 held by 3,397,000 veterans or an average of about
$1,000
each.
The burden upon the country was to be an amount each
year sufficient
as a yearly premium to provide for the payment of the "face
value" of
these certificates in about 1945, and to date has involved
an appropriation
averaging $112,000,000 per annum. The accumulation of these
appropriations is represented by Government obligations deposited in a
reserve fund,
which fund now amounts to about $70,000,000. A loan
basis to certificate
holders was established equal to 90% of the reserve value
of the certificates, such loans now in the sixth year being authorized to
22'A % of the
"face value."
• • •
It is now proposed to enlarge the loan rate to 50% of
the "face
at a low rate of interest, thus imposing a potential cash outlay value,"
Government of about $1,700,000,000, if all veterans apply for upon the
loans, less
about $330,000,000 already loaned. According to the
Administra
Veterans' Affairs the probable number who will avail themselves tor of
of the
privilege under this bill will require approximately $1,000,000,
000. There
not being a penny in the Treasury to meet such a demand, the
Government
must borrow this sum through the sale of the reserve fund
securities
together with further issues or we must needs impose further
taxation.
The utility of this legislation as relief to those in distress is far
less
than has been disclosed. The popular assumption has been that
as the
certificates average $1,000 then each veteran can obtain $500 by
way of a
loan. But this is only an average, and more than one-half will receive
less than this amount. In fact, over 800,000 men will be able
to borrow
less than $200, and of these over 200,000 will be able to borrow only
an
average of $75.
• • *
It is argued that the distribution of the hundreds of millions
of dollars proposed by this bill would stimulate business generally. We
cannot
further the restoration of prosperity by borrowing from some
of our people,
pledging the credit of all the people, to loan to some
of our people who
are not in need of the money. If the exercise
of (?)
• • •
The need of our people today is a decrease
in the burden of taxes and
unemployment, yet they (who include the veterans)
are being steadily
forced toward higher tax levels and lessened
employment by such acts as
this.
The President also said in his message: "I
have many
manifestations from veterans on whom the times
are bearing hardly that they do not want to be represented
to our
people as a group substituting special privilege for
the
idealism and patriqtism they have rejoiced in
offering to
their country through their service." He further
said:
Together with war risk
insurance and the adjusted compensation, these
services now total an annual expenditure of approximately
$600,000,000 and
under existing laws will increase to $800,000,000 per
annum in a very few
years for world war veterans alone. A total of five
thousand millions of
out
work and in distress.
Representative Connery (Dem.) of Lynn, Mass., asked Mr. Tilson if
he believed it right that men who fought in the war should he made
to
prove that they are "paupers" in order to get these loans. Mr. Tilson
said that he had not suggested that.
The Speaker then put the question to the House. "The question is
whether the House on reconsideration will agree to pass the bill, notwithstanding the President's objections," he said. The roll call followed.
There was no vote against the bill on the minority side.
The roll call follows:
For overriding the veto, 328.
Republicans, 179.
The Senate on Feb. 26 agreed to take the bill up for
consideration at 11 A.M. on Feb. 27. In the Senate yesterday (Feb. 27) where the necessary two-thirds was registered in the vote of 76 to 17 to override the veto, one
Democrat—Senator King of Utah—voted with 16 Republicans to sustain the President, but his supporters
snowed under in one of the largest Senate votes in recent
sessions. The entire membership, with two exceptions,
was present, according to the Brooklyn "Daily Eagle"
of last night which also said in part:
The act will enable veterans of the World War to borrow up to 50%
of the face value of their bonus certificates, granted in 1924, which do not
mature until 1945. The administration estimates that this will cost about
$1,000,000,000.
How They Voted.
The 17 Senators who voted to sustain the President's veto were as
follows:
Republicans--Bingham, of Connecticut; Borah, of Idaho; Fess, of Ohio;
Goff, of West, Va.; Gould, of Maine; Hastings, of Delaware; Herbert
and
Metcalf. of Rhode Island; Morrow, of New Jersey; Moses of New Hampshire; Phipps, of Colorado; Reed, of Pennsylvania; Smoot of
Utah; Walcott, of Conn.; Waterman, of Colorado, and Watson, of Indiana, and King.
Both New York Senators, Robert F. Wagner and Royal S. Copeland,
voted to override the veto.
The original Senate vote on the first passage of this measure was 72
to 12. Eliminating Senators who were paired on the first vote,
all that
the White House could show this afternoon in the way of new support
was two votes—Watson, of Indiana, and Waterman, of Colorado, Republicans, who changed on the final showdown to support the President.
Senator Vandenberg of Michigan, one of the Administration stalwarts,
opened the debate with a plea to disregard the veto. He dissented with
the President "with the greatest reluctance," but argued that "the facts
are the same as when the Senate voted 72 to 12 to pass this legislation."
• • •
Block Immediate Vote.
The Senate came near to acting on the veto last evening. As soon
as the House had voted William Tyler Page, its clerk took the bill and veto
message to the Senate chamber. The second deficiency bill was being
debated, but Senator Johnson, Republican, California, said he would call
for consideration of the veto as soon as the bill under consideration was
passed. He was prevailed upon not to do this because a number of
Senators had gone home.
Presaging rejection of the veto, however, the Senate added $2,000,000
to the deficiency measure to provide for the expenses of administering
the loan bill.
With the House vote on Feb. 26 of 328 to 79, more
than
the necessary two-thirds majority required to pass
the bill
over the President's veto was obtained. Regardi
ng
House action on Feb. 26 we quote as follows from the
the
Washington dispatch on that date to the New
York
"Times":
Federal Expenditures for Veterans of World War Since
32 New Yorkers Against Veto.
Armistice, $5,500,000,000.
Thirty-two New York members voted to override the
President, including twenty Democrats and twelve Republicans, while eight
Federal expenditures for veterans of the World War
New
York
Republicans voted to sustain the President. Representative
Celler, Demo- and their dependents since the armistice of Nov. 11, 1918,
crat, of New York, was not present.
have amounted to nearly $5,500,000,000, or an average of
New York Republicans voting to override the veto were
Representatives
Clarke, Cooke, Crowther, Culkin, Davenport, Fish, Hancock, La
about
$463,000,000 each year, says a Washington dispatch
Guardia,
Harcourt J. Pratt, Sanders, Snell and Whitney.
Feb. 21 to the New York "Times," which further reported:
The New York Democrats were Representatives
Black, Bloom, Boylan,
The peak in expenditures for veteran relief has not yet been attained,
Brunner, Carley, Corning, Cullen, Dickstein, Fitzpatrick, Gavagan,
Grif- General Frank T. Hines, Administrator of Veterans' Affairs, told
the
fin, Kennedy, Lindsey, Mead, O'Connor, Oliver, Prall, Sirovich,
Somers House Ways and Means Committee a few days ago.
and Sullivan.
The
forms.
different
relief
has
Amounts
seven
taken
York
extended
New
under
The eight
Republicans voting to sustain the veto
were five of the items are:
Representatives Bacon, Dempsey, Parker, Ruth Pratt,
Reed, Stalker,
I. Adjusted service compensation, the certificates ranging in matured
Taber and Wainwright.
value from $150 to $1,595. To date the number of certificates issued is
1530
FINANCIAL CHRONICLE
3,498,376, of a total value at maturity of $3,528,022,777. Loans on these
certificates to date are $242,796,961.
2. Hospitalization. The Federal Government now operates 51 hospitals,
with 15 others under construction or authorized. The cost to date of
maintaining the hospitals is about $450,209,080.
3. Death and disability compensation, paid out to date, $1,759,000,000.
4. Government insurance, paid out to date, more than $1,445,401,211.
5. Monthly payments of term insurance for total and permanent disability, over $8,000,000.
The figures for the remaining two forms of relief, namely, disability
allowances and emergency officers' retirement pay, are not yet available.
President Hoover's Message Vetoing Soldier's Bonus Bill.
As we indicate in another item, dealing with the Congressional action this week on the bill increasing the loan
basis of adjusted service certificates of World War veterans (so-called bonus bill) President Hoover on Feb. 26
vetoed the bill as passed by the House on Feb. 16 and the
Senate on Feb. 19. The President's veto message follows:
To the House of Representatives:
increase
I return herewith, without my approval, H. R. 17054, "an act to
may be
the loan basis of adjusted service certificates." In order that it
(bonus
clearly understood, I may review that the adjusted compensation act
approximately
bill) passed on May 19, 1924, awarded to 3,498,000 veterans
$1,365,000,000 further compensation for war service. To this sum was
added 25%, said to be consideration for deferring the payment until about
1945, the whole bearing 4% compounded interest.
Immediate payment to dependents upon death was included, thus creating an endowment insurance policy represented by a certificate to each
veteran showing The sum payable at the end of the period—the "face
value." The total "face value" of the outstanding certificates today after
paying the sums due of less than $50 and payments in full to dependents
is $3,426,000,000, held by 3,397,000 veterans, or an average of about $1,000
each.
The burden upon the country was to be an amount each year sufficient
as a yearly premium to provide for the payment of the "face value" of
these certificates in about 1945, and to date has involved an appropriation
averaging $112,000,000 per annum. The accumulation of these appropriations is represented by Government obligations deposited in a reserve
fund, which now amounts to about $750,000,000. A loan basis to
certificate holders was established equal to 90% of the reserve value of the
certificates, such loans now in the sixth year being authorized to 22%%
of the "face value."
When the bonus act was passed it was upon the explicit understanding
of the Congress that the matter was closed and the Government would
not be called upon to make subsequent enlargements. It is now proposed
to enlarge the loan rate to 50% of the "face value," at a low rate of
interest, thus imposing a potential cash outlay upon the Government
of about $1,700.000,000, if all veterans apply for loans, less about
$330,000,000 already loaned.
According to the Administrator of Veterans' Affairs the probable number
who will avail themselves of the privilege under this hill will require
approximately $1,000,000,000. There not being a penny in the treasury
to meet such a demand, the Government must borrow this sum through
the sale of the reserve fund securities together with further issues or we
must needs impose further taxation.
12.
Adoption of the principle of aid to the rich or to those able to support
themselves in itself sets up a group of special privilege among our citizens.
The principle that the nation should give generous care to those
veterans who are ill, disabled, in need or in distress, even though these
disabilities do not arise from the war, has been fully accepted by the
nation. Pensions or allowances have been provided for the dependents
of those who lost their lives in the war; allowances have been provided
to those who suffered disabilities from the war and additional allowances
were passed at the last session of Congress to all the veterans whose
earning power at any time may be permanently impaired by injury or
illness; free hospitalization is available not only to these suffering
from the results of war but also to large numbers of temporarily ill.
Together with war-risk insurance and the adjusted compensation, these
services now total an annual expenditure of approximately $600,000,000
and under existing laws will increase to $800,000,000 per annum in a
very few years for World War veterans alone. A total of $5,000,000,000
has been expended upon such services since the war.
Our country has thus shown its sense of obligation and generosity,
and its readiness at all times to aid those of its veterans in need. I have
the utmost confidence that our service men would be among the first
to oppose a policy of Government assistance to veterans who have property
and means to support themselves, for service men are devoted to the
welfare of our country in peace as in war and clearly foresee the future
dangers of embarking on such a policy. It could but create resentments
which would ultimately react against those who should be given care.
It is argued that the distribution of the hundreds of millions of dollars proposed by this bill would stimulate business generally. We cannot
of our
further the restoration of prosperity by borrowing from some
of our
people, pledging the credit of all of the people, to loan to some
these
rights
of
exercise
the
If
money.
people who are not in need of the
were limited to expenditure upon necessities only, there would be no
anticistimulation to business. The theory of stimulation is based upon the
return
pation of wasteful expenditure. It can be of no assistance in the
should
we
correct,
is
of real prosperity. If this argument of proponents
make Government loans to the whole people.
It is represented that this measure merely provides loans against a
people
future obligation and that, therefore, it will cost the American
nothing. That is an incomplete statement. A cost at once arises to the
Governannual
the
appropriation,
people when, instead of proceeding by
ment is forced to secure a huge sum by borrowing or otherwise, especially
in the midst of
are
compelled
we
when
today,
in the circumstances of
depression to make other large borrowings to cover deficits and refunding
operations.
An increased rate of interest which the Government must pay upon
of
all long-term issues is inevitable. It imposes an additional burden
interest on the people which will extend .through the whole term of such
loans. Some cost arises to the people through the tendency to increase the
interest which every State and municipality must pay in their borrowing
for public works and improvements, as well as the rate which industry and
business must pay. There is a cost to some one through the retardation
of speed of recovery and employment when the government borrowings
and
divert the savings of the people from their use by constructive industry
the individuals who lose such
commerce. It imposes a great charge upon
this
a
is
veteran
the
To
unemployed.
increased employment or continue
his certificate and has also
double loss when he has consumed the value of
There is a greater cost than
lost the opportunity for greater earnings.
aid to those who can help
all this: it is a step toward Government
fall upon the people as a
themselves. These direct or indirect burdens
whole.
the burden of taxes and
The need of our people today is a decrease in
veterans) are being steadily
unemployment, yet they (who include the
employment by such acts
Appeal for Reopening of Bonus Act.
forced toward higher tax levels and lessened
must not forget the millions of hard-working families
The sole appeal made for the reopening of the bonus act is the claim as this. We
which they have indebts
the
who are striving to pay
that funds from the National Treasury should be provided to veterans in in our country
homes and farms in endeavor to build protection for
acquiring
in
curred
and
business
drought
depression.
There
are
the
of
result
the
as
distress
They, in the last analysis, must bear the burden of inveterans unemployed and in need today in common with many others of their future.
Government aid and taxes. It is not the rich who suffer. When
our people. These, like the others, are being provided the basic necessities creasing employment and taxes from our people it is the poor who
of life by the devoted committees in those parts of the country affected we take
by the depression or drought. The Governments and many employers suffer.
chilThere is a very serious phase of this matter for the wives and
are giving preference to veterans in employment. Their welfare is and
veterans and to the future security of veterans themselves. Each
should he a matter of concern to our people. Inquiry indicates that such dren of
certificates is an endowment insurance policy. Any money adcare is being given throughout the country, and it also indicates that the of these
together, with its interest, will be automatically deducted
number of veterans in need of such relief is a minor percentage of the vanced them, of the certificates in case of death or upon maturity.
from the value
whole.
No one will deny that under the pressure or allurements of the moThe utility of this legislation as relief to those in distress is far
will borrow against these certificates for other than absolutely
less than has been disclosed. The popular assumption has been that ment many
purposes. The loss to many families means the destruction
as the certificates average $1,000 then each veteran can obtain $500 necessary safeguard at their most critical time. It cannot be contended
by way of a loan. But this is only an average, and more than one-half of the one
interests of the families of our country are conserved by either
will receive less than this amount. In fact over 800,000 men will be that the
borrowing upon their life-insurance policies.
or
cashing
able
be
will
200,000
over
these
of
and
$200,
able to borrow less than
desire to present the monetary aspects of the question except
no
have
I
100,000
are
there
$75.
Furthermore,
of
average
an
only
borrow
to
they affect the human aspects. Surely, it is a human aspect
veterans whose certificates have been issued recently who under the so far as
to the backs of those who toil, inclnding veterans, a burden
proposed law will have no loan privilege unless their certificates are to transfer
by position and property can care for themselves. It is a
who
those
of
committees
two years old. It is therefore urgent in any event that local
to incur the danger of continued or increased unemployment.
aspect
human
local
lead
such
would
this
legislation
continue relief to veterans, but
of protection by
human aspect to deprive women and children
a
is
It
been
have
veterans
that
these
assume
to
employers
and
committees
of an endowment policy. Our country is rich enough to do
provided for by the Federal Treasury, and thereby threatens them with reckless use
an
injustice.
.enough to do
any justice. No country is rich
greater hardships than before.
not a material thing. It is a spiritual
people is .
The patriotism of our
The breach of fundamental principle in this proposal is the requirement
with Government aid. We can honor
it
for
pay
cannot
We
thing.
a
to
of
money
sum
enormous
of the Federal Government to provide an
our aid. And it is a fundamental aspect of freedom
vast majority who are able to care for themselves and who are caring those in need by
be taken which burdens the nation with a
among us that no step should
for themselves.
can care for themselves.
Among those who would receive the proposed benefits are included privileged class who
consideration as unwise from the standpoint
I regard the bill under
387,000 veterans and 400,000 dependents, who are already receiving some
and unwise from the standpoint of the welfare
themselves
veterans
the
of
in
But
from
the
Government.
of
or
Federal
allowance
support
degree
future of our World War veterans is inseparably
addition to these it provides equal benefits for scores of thousands of others of all the people. The
of the whole people. The greatest service that
who are in the income-tax paying class, and for scores of thousands who bound up with the future
and the public generally is to administer the
are holding secure positions, in the Federal, State and local governments, we can render both veterans
a view to the well-being and happiness
affairs of our Government with
and in every profession and industry.
I know that most of these men do not seek these privileges. They have of all the nation.
is of grave importance in itself; but of
The matter under consideration
no desire to be presented to the American people as benefiting by a
is the whole tendency to •open the Federal
burden put upon the whole people, and I have many manifestations from much graver importancepurposes, many admirable in their intentions, but
veterans on whom the times are bearing hardly that they do not want Treasury to a thousand fail or do not care to see that with such beto be represented to our people as a group substituting special privilege in which the proponents
insidiously consume more and more of the savings
for the idealism and patriotism they have rejoiced in offering to their ginnings many of them
and the labor of our people.
country through their service.
of our country
In the aggregate they threaten burdens beyond the ability
It is suggested, as a reason for making these provisions applicable to
of far higher importance, each of them breaks the
all veterans, that we should not make public distinction between veterans normally to bear. And and self-support in our people.
in need and the others who comprise the vast majority lest we characterize barriers of self-reliance
those desiring help as a pauper class.
HERBERT HOOVER.
On the contrary, veterans in need are and should be a preferred class,
The White House, Feb. 26, 1931.
that a grateful country would be proud to honor with its support.
FHB. 28 1931.]
FINANCIAL CHRONICLE
Under Secretary of Treasury Mills in Letter to Senator
Vandenberg Says Treasury Will Require $400,000,000
Immediately to Meet Soldier Bonus Requirements.
That the Treasury will need $400,000,000 for the quarter
ending June 15 to meet the soldier bonus requirements is
indicated in the following letter addressed Feb. 21 by
Under Secretary of the Treasury Mills to Senator Vandenberg (Republican) of Michigan.
Washington, Feb. 25, 1931.
My Dear Senator Vandenberg:
"I have just read your remarks on the subject of Treasury financing
as reported in The Congressional Record of February 24. I am not
writing you in a spirit of controversy, but solely because I know that
you want to be accurately informed as to the facts, and your remarks
of yesterday evidently indicate some misunderstanding as to the contemplated financial operations of this Department.
The $1,100,000,000 of PA% notes which mature on March 15 were
called some six months ago, long before there was any thought of
amending the adjusted service act, so that it cannot fairly be said that,
despite the new difficulties created by veterans' compensation legislation,
the Treasury is anticipating on its own motion $1,100,000,000 of financing
that could have been postponed for one year.
In the second place, the securities which the Treasury will offer next
week are not related exclusively to our general fiscal operations. Three
or four hundred million of the new issues will be due to the adjusted
service certificate bill, should it become law. As you know, there is
no cash available to make the loans. The required funds will have to be
obtained by the sale of securities in the open market. General Hines
has given me an official estimate stating that the requirements will be
$400,000,000 for the quarter ending June 15. It is the duty of the
Treasury to have these funds on hand. Accordingly the government
financing during the March-June quarter will be increased by that
amount.
There is nothing to be gained by exaggerating the difficulties, but it
is undeniable that this legislation places an additional burden on
this
department.
Trusting I have made the situation entirely clear and with kind
regards, believe me,
Sincerely yours,
OGDEN L. MILLS
Under-Secretary of the Treasury."
President Hoover Directs Veterans' Bureau to Give Loan
Priority to Needy Veterans.
President Hoover announced on Feb. 27 that he had
ordered the Veterans' Bureau to give complete priority to
veterans in need in the administration of the loan bill enacted today over his veto. Associated Press accounts
quote him as saying:
"Although I have been opposed to the bonus bill, now that it has
passed, we propose to facilitate its workings in every way."
The account also said:
The bill will require an intensive organization, but that organization
will be perfected as quickly as possible.
A survey by the Veterans' Bureau, he said, shows that 6% of the
total number of veterans in the country are being taken care of by relief
organizations.
A thousand checks were scheduled to be on their way to veterans
tonight, it was revealed by Administrator Hines of veterans' affairs,
within an hour after the ,Senate overrode the President's veto.
Orders went forth immediately to start lending.
Within five minutes after the Senate had voted the central office of
the Veterans' Bureau released the first loan check.
1531
U. S. S. R. is not justified," and the Department therefore
declined to issue such finding. From the New York "Journal of Commerce" we take the following from Washington, Feb. 24:
A Treasury decision was issued showing that an investigation had failed
to substantiate the charges of the American Manganese Producers' Association that Soviet ore was being sold in the United States at unfair
prices to the detriment of the American industry.
The Manganese Producers' Association made the charges of dumping
against Russian ore, alleging that the American industry was being
paralyzed and that it was in a position to produce a tonnage of ore equal
to that imported from Russia last year.
•
Steel Makers Opposed Ban.
On the other hand, the Iron and Steel Institute, representing the American steel industry, which is the big consumer of manganese ore, protested
against the anti-dumping order. They insisted that the domestic industry
was unable to produce a sufficient quantity of manganese to meet the
demand and that the Russian ore was of superior quality.
Secretary Mellon's official decision was as follows:
"The Secretary of the Treasury finds that the issuance of a finding
of dumping covering manganese ore imported from the Soviet Republic
of Georgia, U. S. S. R., is not justified.
"To collectors of customs and others concerned:
"Upon complaint of the American Manganese Producers' Association
investigation has been made of allegations that manganese ore produced
in the Soviet Republic of Georgia, U. S. S. R., has been and is being
dumped on the United States market contrary to the provisions of the
Anti-dumping Act of 1921.
"After an extended investigation and careful consideration of all the
evidence presented by and on behalf of the parties in interest, I have
reached the conclusion that a finding of dumping with respect to manganese ore imported from the Soviet Republic of Georgia, U. S. S. R., is
not justified and must decline to issue such a finding."
"This investigation was commenced upon the complaint of the American
Manganese Producers' Association, which appears to represent the manganese industry in the United States," said Assistant Secretary of the
Treasury Seymour Lowman, who was in charge of the investigation.
May Mitigate Unfavorable Reaction.
"The association alleges that manganese is being sold in the United
States at less than its fair value to the injury of the American industry.
"The evidence shows that the purchase or the exporter's sales price to
the United Stataf is greater than the foreign market value as defined in
Section 205 of the Anti-dumping Act of May 27, 1921. Therefore, no
finding of dumping may be issued."
The investigation into the manganese situation has been in progress for
months. Several public hearings were conducted at the Customs Bureau.
The domestic industry declared that if Russian imports of manganese
were excluded it might operate profitably and meet the demand.
The manganese decision may mitigate to some degree the unfavorable
reaction in Soviet commercial circles of the action which found that
lumber and pulp wood are being produced by convict labor in that section
of European Russia north of the 60 degrees of latitude and therefore
cannot be brought into the United States. The latter decision led to the
threat that the Soviet Might ban buying American goods.
House Passes Bill for Tightening of Prohibition Against Imports of Convict-Made Goods.
The House of Representatives passed on Feb. 21 the
Kendall-Hawley bill, providing for strengthening of the
tariff act of 1930 in its provisions against the entry of
convict-made goods into the United States. Regarding the
bill the New York "Times" in a Washington dispatch Feb.
21 stated:
The bill contains three specific changes in the tariff act, making the
effective date of its provisions against convict-made or mined goods April
1, 1931, instead of Jan. 1, 1932; applies the embargo provisions against
goods handled, transported, loaded or unloaded in whole or in part by
convict or forced labor, as well as against those manufactured by this
class of workers, and makes depositions by United States agents abroad
Administrator Hines of Veterans' Affairs was at the White House when
the Senate acted. As he left he said the bureau could make the first admissable as evidence in proving the taint of convict labor.
The measure, while supported before the Ways and Means Committee
loan under the bill within five minutes.
Word of the new law went forth quickly to the fifty-four regional largely by groups who favored embargoes against Soviet Russia, is applicable against all goods which are made, handled or transported by
offices of the bureau, so that applications could be accepted at once.
convict or endentured labor.
Veterans Bureau officials estimated today the veteran who
borrowed
The Secretary of the Treasury is authorized under the terms of the
$500 on the $1,000 average certificate would have $74.03 left in
1945, bill to prescribe such regulations as he may deem necessary for carrying
if he failed to pay the interest.
out its provisions.
But if the interest payments were met yearly, borrowers would
reChairman Hawley told the House that the basic purpose of the legislaceive the face value, less the actual amount of the loan, when certificates
tion is to free American labor from the competition of convicts and
mature in fourteen years hence.
forced workers, to the end that the national policy which gives a citizen
Here's what happens:
the privilege of selecting his own vocation be preserved.
Loan, $500.
Urging the passage of the bill, Mr. Hawley explained the defects of the
Interest 4,
/,%, compounded annually, totals $425.97.
present law.
Balance, $74.03.
"The most serious difficulty experienced in the enforcement of the
How it works:
law is the inability to secure evidence concerning the use of convict,
Interest on $500 for first year $22.50. This $22.50 is added to the
forced
or indentured labor," he said. "In certain instances opportunity
$500 and the $522.50 draws interest the second year. The second year's is
denied our government to make such investigations as are necessary.
interest would be added to the $522.50 and the total start drawing
"To aid the Treasury in this respect the provision for depositions by
interest.
agents was included."
The same system would be followed each year.
Meanwhile a group of applications for veterans' loans, estimated at
from fifteen to twenty, waited today in the lobby of the Veterans' Bureau Minnesota Legislature Rejects Iron Ore Tax—Kills
Attempt
for the Senate to override the President's veto. Many other veterans
to Increase Levy to 10% from 6%.
sought information by telephone. Officials said that they were prepared
for a rush of applications.
St. Paul advices as follows are taken from the
Veterans' Bureau Ready to Make Loans to Soldiers.
Associated Press advices from Washington yesterday
(Feb. 27) said:
"Wall
Street Journal" of Feb. 24:
Secretary of Treasury Mellon Finds no Evidence of Dumping
of Manganese Ore in U. S. Market by Soviet Russia.
Secretary of the Treasury Mellon announced on Feb. 24
that the conclusion had been reached by the Treasury Department that "a finding of dumping with respect to manganese ore imported from the Soviet Republic of Georgia
Minnesota House of Representatives rejected an attempt to raise the
occupational tax on iron ore to 10% from 6%.
This action is taken as practically assuring that no increase in iron
ore tonnage tax will be made this session. The House Committee on
Taxation recommended indefinite postponement of bill to increase the tax,
but a minority report urging approval of the tax was brought in and
the House vote was an adoption of the minority report.
Representatives from the mining districts led the fight against the tax
increase.
FINANCIAL CHRONICLE
1532.
[VOL. 132.
Of this, 301,224 tons was for Norway's account. Of Germany's total
launchings of 245,000 tons, 124,178 tons were for shipowners of other
countries. In 1929 Great Britain and Ireland launched only 259,870 tons
for foreign account, and Germany 111,576 tons.
A large gain-more than half a million gross tons-was recorded in 1930
in the volume of launchings of tankers (steamers and motorships of 1,000
gross tons and upwards each). Launchings of this type of vessel in Great
Britain and Ireland were 375,000 gross tons more than in 1929. For the
United States there was a gain of 92,000 tons; for Germany, 60,000 tons,
and for Sweden, 45,000 tons. For the other countries combined there
was a decrease of about 10,000 tons. The contrast for the two years is
shown by Lloyd's Register in the following table, the figures representing
gross tons:
1929.
1930
1929
1930
23,400
69,082
12,303 Sweden
104,674
United States
87,941
78,657
countries-.
Other
Great Britain and
175,009
550,475
Ireland
324,870
889,865
World total
28,217
86,977
Germany
Mr. Ballantine is a graduate of Harvard College and of the Harvard
The great bulk of tankers launched during 1930 were of the motorship
Clark,
of
firm
Root,
the
of
Law School, and is at present a member
type, the aggregate tonnage of these launchings being 778,854 gross tons.
Buckner and Ballantine. He served in 1917 as advisory counsel on taxa- This total includes 510,791 tons in Great Britain and Ireland and 55,536
tion matters in the Treasury Department, in 1918 as Solicitor of Internal tons in the United States, During 1929 the total launchings of motor
Revenue, and in 1927 as adviser to the Congressional Joint Committee on tankers represented only 213,783 tons.
Internal Revenue Taxation.
Sailing vessels and barges continue to represent a very small proportion
of the world's output of merchant shipping, the total launchings of these
types during 1930 being only 53,996 gross tons. In 1929, however, the
Lloyd's Ship Building Statistics for 1930-Larger Vol- aggregate was only 19,019 tons.motorships of various types was strongly
Increasing construction of
ume of Tonnage Launched in Past Year Than in manifested
again last year. The total launcnings of vessels to be equipped
1921.
Since
Any Year
with motors showed a gain during 1930, Lloyd's points out, of more than
gross tons over the 1929 figure. The bulk of the Increase was in
Merchant vessels launched throughout the world in 1930 300,000
Great Britain and Ireland: but advances were also reported for the United
than
for
any
year
tonnage
the
of
volume
represented a larger
States, Germany, Denmark and Sweden. There were small declines in
in Holland and Japan, and a decrease of
since 1921, which was the culmination of the shipbuilding output of this type of shipping other
shipbuilding nations taken together.
70,000 gross tons for the
boom begun during the war, says a statement issued Jan. 28 about
Launchings of motorships during the past two years is shown by Lloyd's
covers
from
returns
by Lloyd's Register of Shipping, which
In the following table of gross tonnage:
Senate Confirms Nomination of Arthur A. Ballantine as
Assistant Secretary of the Treasury Succeeding W. E.
Hope, Resigned.
The U. S. Senate confirmed on Feb. 23 the nomination
of Arthur A. Ballantine of New York as Assistant Secretary of the Treasury, succeeding Walter E. Hope, whose
resignation was referred to in our issue of Februay 21,
page 1350. Mr. Ballantine, who was nominated for the
post by President Hoover on Feb. 21, will have charge of
internal revenue and bther fiscal affairs in the Treasury
Department.
A White House announcement said:
all maritime countries for vessels of 100 gross tons and
upwards. Launchings for last year were almost 100,000
gross tons in excess of the total for the previous year; but
the aggregate for 1930 was nearly 350,000 tons less than
for the last pre-war year, 1913.
During 1930, for the first time in the history of world
shipbuilding, Lloyd's Register points out, tie tonnage of
the motorships launched was in excess of that for all other
types of vessels combined. Another feature of the 1930
returns is the increase in the output of the shipyards of the
United States. Their launchings were almost double their
total for 1929. As a result, this country, which ranked fifth
in volume of output in 1929, is now second only to Great
Britain and Ireland. As against the American gain of
120,000 gross tons for last year, says Lloyd's, a decline of
44,000 gross tons was reported for Great Britain and Ireland,
while for all other countries combined there was a gain of
about 20,000 tons. How these groups have compared in
launchings during the past two years is shown by Lloyd's
in the following table of gross tonnage:
1930.
246.687
1,478,583
1,184,222
United States
Great Britain and Ireland
Other countries
1929.
126,063
1,522,623
1,144,524
2,889.472
2.793,210
World total
The figures for the United States include 208.361 gross tons of launchings on the Atlantic Coast and 32,675 tons on the Great Lakes.
Variations in the volume of the world's ship production
during recent years is shown by Lloyd's Register in the
°Bowing table of gross tonnage, covering the last pre-war
year, and all years since the war:
1913
1919
1920
1921
1922
1923
1924
Yearly
Launchings.
3,332,000
7.144,000
5,861.000
4.356,000
2,467 000
1.643,000
2,247.000
Loss or
Gain.
+3,812,000
-1,283,000
-1,505,000
-1,874,000
-824,000
+604,000
1925
1926
1927
1928
1929
1930
Yearly
Launchings.
2,193,000
1 674,000
2,285,000
2,699,000
2,793,000
2,889,000
Loss or
Gain.
-54,000
-519.000
+611,000
+414,000
+94.000
+96,000
It is stated that while the United States still launches
much less tonnage than Great Britain and Ireland, the gap,
which was 1,656,000 gross tons in the last year before the
war, and fell to 532,000 tons in 1921, increasing from then
almost uninterruptedly, grew to 1,396,000 tons in 1929,
fell last year to 1,232,000 tons. At the height of the shipbuilding drive in 1919 the United States launched 2,455,000
gross tons more than Great Britain and Ireland. The comparative standing of the United States and Great Britain
and Ireland in launchings during recent years is shown by
Lloyd's Register in the following gross tonnage table:
1913
1919
1920
1921
1922
1923
1924
United
States
276,000
4.075.000
2,476.000
1,006,000
119,000
172,000
139,000
Lloyd's says:
Great BritainI
& Ireland
1,932,000 1925
1,620,000 1928
2,05.5,000 1927
1,538,000 1928
1,031,000 1929
645,000 1930
1,439.000
United
States
128,000
150,000
179,000
91,000
128,000
246,000
Great Britain
& Ireland
1,084,900
639,000
1,225,000
1,445,000
1,522,000
1,478,000
Of the total tonnage of merchant vessels launched throughout the world
In 1930, there was constructed under the supervision of Lloyd's Register,
and intended to be classed with that society, a total of 1,855,688 gross tons.
This compares with 1,797.323 tons in the previous year, and represents
nearly two-thirds of all the tonnage sent down the ways during 1930.
The total of 1,478,000 gross tons launched in Great Britain and Ireland
during 1930 includes 650.575 tons built for the account of foreign countries,
1929.
1930.
1929
1930
93,089
117,205
464,188 GermanY
Great Brit & Ire__ 759,282
36,452
71,854
131,092 United States
128,195
Holland
211,255
.
142,885
countriesOther
134,673
123,894
Japan
94.649
120,262
Denmark
World total
1,582,994 1,269,888
104,490
119,417
Sweden
The growth of the trend towards vessels equipped with internal combustion engines last year reached the point where the total of the combined
launchings of all other types of merchant ships was less than that of motorships alone. From 1921, when the launchings of motor vessels represented
only about 8% of all tonnage sent down the ways, the proportion increased
rapidly until in 1928 it had reached 44% of the total. During 1929, however, the gain was only about 1%. For 1930, however, there was a gain
of about 10%, with the result that about 55% of all the merchant vessels
launched last year were motorships.
During 1930 the motorship launchings aggregated 313,000 gross tons
of
more than in the previous year; while in the same period the launchings
all other types showed a decrease of 217,000 tons. For 1930 the motorwhile
ships sent down the ways totaled 1,276.000 tons more than in 1921;
shows a decline of
the aggregate for all other kinds of vessels combined
motorship
figure. How greatly
2,728,000 tons as compared with the 1921
by Lloyd's Regisconstruction has increased during recent years Is shown
for comparative launchings of
tonnage
gross
of
ter in the following table
the two groups of production:
Other
Motor
Other
Motor
Types.
Vessels.
Types.
Vessels.
970,000
704,000
1926
4,035,000
308,000
1921
1,422,000
883,000
2,258,000 1927
209.000
1922
1,516,000
1,183,000
1,417.000 1928
226.000
1923
1,524,000
1,269,000
1929
1,746,000
501,000
1924
1,307,000
1,582,000
1,350,000 1930
843,000
1925
tons
gross
9,999
to
from
of
6,000
motorships
122
During 1930 there were
with only 58 in 1929.
each launched throughout the world, as compared
Ireland.
Britain and
Of the 1930 total. 76 vessels were launched in Great
sized motor vessels,
The year, however, did not show a gain for the Larger
being launched,
these
of
22
only
upwards,
and
those of 10,000 gross tons
ways
as against 27 in 1929. Seven of the larger motorships sent down the
last year were launched in Great Britain and Ireland.
than
less
The number of steamers launched last year was considerably
the motorship total. There were only 33 steamers of from 6,000 to 9,999
the
gross tons sent down the ways in 1930, one more than in 1929. Of
the
larger sized steamers there were eight, as against seven in 1929. Of
smaller steamers ten were launched in Great Britain last year, and two of
the larger size.
The tonnage of vessels equipped with steam turbines launched throughout the world in 1930 aggregated 362,195 gross tons,comparing with 302,000
and
tons in 1929. The 1930 total includes 119,121 tons for Great Britain
Ireland and 110,395 tons for the United States.
turbines
Ships fitted with a combination of reciprocating engines and
were
launched during 1930 totaled 71,649 gross tons, of which 53,145 tons
decline
sent down the shipways in Great Britain and Ireland. This Is a
of nearly 60,000 tons from the 1929 world figure of 128,000 tons.
were
Vessels built on the Isherwood system oflongitudinalframing which
C01112launched during 1930 represented a total of 710,000 gross tons for all
tries. This includes 508,000 tons in Great Britain and Ireland, and 104,305
tons in the United States.
The relative ranking of the various countries in the volume of launchings
was changed in several instances last year, although Great Britain and Ireland continue to retain the leadership by a wide margin, although a somewhat reduced one.
United
By nearly doubling the amount of tonnage launched in 1929, the
Germany
States advanced from fifth to second place in 1930,just nosing out
Germany the
by a margin of only about 1.000 tons. This takes from
in third
position of runner-up to Great Britain and Ireland, and puts her
has gone
Position. Holland, which was third, is now fourth, and Japan
follow.
from fourth to fifth place. Denmark, Sweden, France and Italy
amount of tonretaining the same positions they held in 1929. A greater
Denmark,
nage was launched last year than in 1929 by the United States,
decreases. The
Sweden, France and Italy, the other countries showing
of any other
tonnage gain of the United States was much greater than that
25,000 for
country, her advance of 120,000 gross tons comparing with
Italy.
for
Denmark, 24,000 for Sweden. 19,000 for France and 16,000
compared in the
How the total launchings of the various nations have
following table of gross
Past two years is shown by Lloyd's Register in the
tonnage:
1929.
1930.
1929.
1930.
164.457
151,272
Japan
Great Britain and
111,496
137,230
1,478,583 1,522,623 Denmark
Ireland
107,246
131,781
126,063 Sweden
246,687
United States
81,607
100,917
249.077 France
245,557
Germany
71,497
87,709
186,517 Italy
153,072
Holland
FEB. 28 1931.]
FINANCIAL CHRONICLE
1533
The proportionate share of Great Britain and Ireland in the world total relations as their claim for a distributive
share of this Merest fund has been
of launchings declined last year, their share being 51% as against
54% in adjudicated by the decision of the Supreme Court in the above case, Wilbur
1929.
v. The United States, known as the Kadrie case,
The share of the United States in the total output advanced from 4M%
Neither is it necessary to amend the act of May 14 1926, for the purpose
in 1929 to 83% in 1930, as compared with 3%% in 1928. The present of
compelling restoration by the United States to the interest fund of amounts
percentage is slightly above that held by this country just before the war. that may
have been heretofore erroneously distributed to Indians who had
The highwater mark for the United States was in 1919, when American
severed their tribal relations. Obviously the plaintiffs in such an action
shipyards launched 57% of the total of all countries.
would be only those who had not severed their tribal relations and were dill
For the other shipbuilding countries taken as a group, there was a perentitled to their distributive share of this interest fund.
centage loss ofjust 1% during 1930, the 1929figure of41.5% going to 40.5%.
The Supreme Court of the United States has said that the Secretary of the
Before the war this group of nations was launching 34% of the world toted.
Interior and administrative jurisdiction to determine the rights of these
and in 1926 they reached a peak of 53% of world production.
The largest vessel launched in the world in 1930. Lloyd's reports, was Indians to that interest fund and that his decision was not contrary to the
the Empress of Britain, with a gross tonnage of 42,000. She was built provisions of the act of 1889. I am not in favor of the legislation designed
In Great Britain and Ireland. Next to her in size came L'Atlantique, of to have the courts again review that decision and assume such administrative
jurisdiction.
40,945 gross tons, constructed in France.
(Signed) HERBERT HOOVER.
President Hoover Vetoes Bill for Distribution of Chippewa Fund—Disapproves Measure to Award Portion
of Land Sale Money to Indians Severed from Tribe.
President Hoover on Feb. 24 vetoed a bill designed to
amend the Act of May 14 1926 so as to permit certain Chippewa Indians who have severed their tribal relations with
the Chippewa Indians of Minnesota to share in the distribution of an interest fund derived from the sale by the United
States of tribal lands in that State. The President, in a
message returning the bill to the House without his approval, held that it was unnecessary to amend the Act to
bring in as parties plaintiff those Indians who have severed
their tribal relations, as their claim for a distributive share
of the interest fund had already been adjudicated by a decision of the Supreme Court of the United States in the
Kadrie case, says the "United States Daily," which gave
the veto message as follows:
To the House of Representatives: I return herewith without my
approval
H. R. 13584—An Act to amend an Act approved May 14 1926 (44 Stat.,
555), entitled "An Act authorizing the Chippewa Indians of Minnesota
to submit claims to the Court- of Claims."
The Act of May 14 1926 authorized the Chippewa Indians of Minnesota
to submit to the United States Court of Claims for adjudication any
legal
and equitable claims which they may have against the United
States
arising under or growing out of the Act of Jan. 14 1889, or any subsequent
Act of Congress, in relation to the affairs of these Indians.
Changes Proposed.
This bill would amend that Act of May 14 1926 by adding to Section 1
the following language:
"In any such suit or suits the plaintiff, the Chippewa Indians of Minnesota,
shall be considered as including and representing all those entitled to share in
either the interest or in the final distribution of the permanent fund provided for
by section 7 of the act of Jan. 14 1889 (25 Stat. L.612), and the agreements entered
into thereunder. That nothing herein shall be construed to affect the powers of
the Secretary of the Interior to determine the roll of the Chippewa Indians of Minnesota for the purpose of making the final distribution of the permanent Chippewa
fund. The act shall apply to any and all suit or suits brought under said act of
May 14 1926, whether now pending or hereafter commenced."
A number of suits have been filed by these Indians and are now pending
In the Court of Claims.
The Act of Jan. 14 1889 was entitled "An Act for the relief and civilization of the Chippewa Indians in the State of Minnesota." These Indians
were tribal Indians under the guardianship of the United States living upon
their reservations as tribal lands comprising approximately 4,700,000 acres.
Pursuant to the Act of 1889, these tribal lands, except portions thereof
needed for allotments to these Indians, were ceded to the United States to
be sold and the net proceeds thereof to be held in the United States Treasury
for 50 years, to bear interest at the rate of 5% to be expended for the
benefit of the Indians. Three-fourths of the it-rest was to be paid
annually to the Indians in equal shares per capita and one-fourth to be
devoted to the establishment and maintenance of free schools for
these
Indians, and the Act further provided that at the expiration of said
50
years the said permanent fund shall be divided and paid to all of
said
Chippewa Indians and their issue then living, in cash, in equal shares.
Many Since Scattered.
Many of these Indians since 1889 have severed all of their tribal relations
and are mattered in various sections of the country, but the Chippewa
tribe still exists in the White Earth and Red Lake Reservations under
the
guardianship of the United States which is continuing to maintain
free
schools for their civilization.
Quite a number of these Indians who had severed their tribal
relations
continued to receive their distributive share of the interest fund until
1927
when the Solicitor of the Interior Department held that the fund established from the sale of these lands was a tribal fund administered by the
United States for the benefit of the tribe which had not been
dissolved
but was recognized by Congress and that, then4ore, the right to share
in
the interest annuities depended upon existing tribal membership.
Accordingly such Indians who had severed their tribal relations were
stricken
from the roll by the Secretary of the Interior and no longer entitled
to
participation in the interest annuities.
Sought Mandamus.
Several of these Indians in the case of Wilbur v. The United States petitioned for a writ of mandamus commanding the Secretary of the Interior to
restore them to the rolls of the Chippewa Indians and to pay to each of them
their per capio share of these interest annuities and of all future distributions of interest and principal from the fund created under the Act of 1889.
The Supreme Court of the United States denied this writ of mandamus holding that the Secretary of the Interior had administrative jurisdiction to
make such a decision which was not contrary to the provisions of the Act
of 1889, whose purpose was to accomplish a gradual rather than an immediate
transition from the tribal relation and independent wardship to full emancipation and individual responsibility. The Supreme Court also said in this
case which was decided in April 1930, that the time fixed for the final
distribution of the fund is as yet so remote that no one is now in a position
to ask special relief or direction respecting that distribution.
It thus appears that it is Unnecessary to amend the act of May 14 1926,
to bring in as parties plaintiff those Indians who have severed their tribal
President Hoover Vetoes Bill to Compensate Indian
Tribes for Oklahoma Land Ceded to Government
in 1866—Rights Sold for $1,100,000—President
Holds This Paid in Full for 5,224,346 Acres—Holds
Revival of Claims of Choctaw and Chickasaw Indians a "Dangerous Precedent."
Declaring that the increased value of lands acquired from
the Indians years ago is the result "of the efforts of our
citizens in building this nation," President Hoover on Feb. 18
vetoed the bill which would have given to the Court of
Claims the authority to revive the claims of the Choctaw
and Chickasaw Indians relating to lands relinquished under
treaty by the Indians more than seventy-five years ago.
This was noted in a Washington dispatch Feb. 18 to the
New York "Times" from which the following is also taken:
The claim, which is the basis of the bill as passed by the Senate, is for
5,224,346 acres of lands which the Indians ask compensation for at the rate
of $1.25 an acre. The proposed law, the President declared, would "create a
lawful aspect to a claim which had no legal standing."
The veto had the effect of defeating a task undertaken eighteen years
ago by Patrick J. Hurley of Oklahoma, now Mr. Hoover's Secretary of War,
but then national attorney for the Choctaw tribe.
At that time Mr. Hurley succeeded in obtaining the introduction of legislation directed toward obtaining payment to the Choctaws for land in
Oklahoma. Congress this session finally passed it.
Text of the Veto Message.
In vetoing the bill the President said:
To the Senate:
I return herewith without my approval the bill,
8. 3165, An Act conferring Jurisdiction upon the Court of Claims to hear, coneider, and report upon a claim of the Choctaw and Chickasaw Indian nations or
tribes for fair and lust compensation for the remainder of the leased district lands.
Thia act undertakes, by indirection, to revive the claims of the Choctaw
and Chickasaw nations for compensation for parts of the so-called leased
district.
The leased district lands of these Indians comprised approximately seven
million acres, lying between the 98th and 100th degrees of west longitude
in the State of Oklahoma. By treaty of June 22 1855, the United States
paid the Choctaws $600,000 and the Chickasaws $200,000 for the lease of
this land to the United States in perpetuity, as
well as for the cession to
the United States of their land west of the 100th
degree of west longitude.
By treaty of April 28 1866, involving an additional
payment of $300,000
the Choctaws and Chickasaws ceded the leased district
land to the United
States, hereby parting with all rights of any kind in that
land.
In 1891 Congress appropriated $2,991,450 to pay the
Choctaws and
Chickaeaws for approximately 2,293,000 acres of the leased district land
granted by Congress to the Cheyennes and the Arapahoes.
Harrison Protest Cited.
Insigning the general appropiation bill containing this item President
Harrison protested at paying for land that already belonged to the Federal
Government, saying in a message to Congress that he would have disapproved
the bill because of this item were it not for the disastrous consequences that
would result from the defeat of the entire appropriation bill.
In December 1892, Congress passed a resolution containing the following
provision:
"Provided, however, that neither the passage of the original act of appropriation
to Pay the Choctaw tribes of Indians for their interest In the lands of the Cheyenne
anceArapahoe reservation, dated March 3 1891, nor of this resolution shall be held
In any way to commit the Government to themayrocnt of any further SUM to the
Choctaw and Chickasaw Indians for any alleged interest in the remainder of the
lands situated in what is commonly known and called the leased district."
In 1899 the Court of Claims decided that the title to the reene--.ng
acreage of leased district land was in the United States in trust for the
Choctaw and Chickasaw Indians. However, the United States Supreme
Court, in its decision of Dec. 10 1900, reversed the Court of Claims, and
held that the treaty of 1866 vested in the United States complete title to
the leased district land.
The present claim of the Choctaw and Chickasaw Indians is for 5,224,346
acres at $1.25 per acre.
"A Dangerous Precedent."
The bill does not send this claim to the Court of Claims for adjudication
and settlement, as is normally the -Ise with respect to Indian claims.
That would, indeed, be futile, since tht Supreme Court has ruled that neither
it nor the Court of Claims hu jurisdic in to decide that the United States
shall pay for lands that it already owns The result of the bill would seem
to be, through a report to Congress free the Court of Claims, to create a
lawful aspect to a claim which has no p.esent legal standing.
This case raises a very wide issue 04 whether we are to undertake revision
of treaties entered into the acquiring of Indian lands during the past
150
years. The values of such lands have obviously increased, and the undertakings entered into at the time the agreements were made may naturally
look small in after years. But the increased values have been the result
of
the efforts of our citizens in building this nation.
This case would, I feel, create a dangerous precedent which could
conceivably involve the government in very large liabilities. If it is
the
thought of Congress that justice requires the revision of Indian
treaties in
1534
FINANCIAL CHRONICLE
[VoL. 132.
must,
They say it was the intent of its framers, and the Constitution
amendments contherefore, be taken impliedly to require, that proposed
shall be
ferring on the United States new direct powers over individuals
of this
ratified in conventions, and that the Eighteenth Amendment is
that the framers
character. They reach this conclusion from the fact
in
people
by the
thought that ratification of the Constitution must be
latter were incompeconvention assembled and not by Legislatures, as the
new National
tent to surrender the personal liberties of the people to the
noticed, they
Government. From this and other considerations, hereinafterfrom what it
ask us to hold that Article V means something different
plainly says.
to the correctness
In addition, the urge that if there be any doubt as
the Tenth Amendment removes it.
Loans of $32,821,000 Advanced to Depositors of Bank of of their construction of Article V, follow
this reasoning. It quashed the
The District Court refused to
United States—Drop in Loan Pleas Indicates indictment,
Amendment X,
as a result of analysis of Article V and
not
of the
Clients of Bank Will Back. Reorganization Plan.
but by resorting to "political science," the "political thought"
to the problem of government." These,
Net loans of $32,821,000 have been advanced to depositors times and a "scientificitapproach
for
requisite
method
to declare the convention
it thought, compelled
of the Bank of United States, according to figures made ratification of an amendment such as the Eighteenth. The appellees do not
it states, but
public on Feb. 20 by Joseph A. Broderick, New York State attempt to justify the lower court's action by the reasonsrejected.
urged upon that court and by it
Banking Superintendent, who closed the bank and took over by resubmitting to us those
and in
The United States asserts that Article V is clear in statement
its assets on Dec. 11 1930. The loans are being advanced meaning,
contains no ambiguity and calls for no resort to rules of construetwo
Clearing
provides
of
It
group
true.
a
this
is
by
up to 50% of the depositors' balances
tion. A mere reading demonstrates that
. Congress may propose them by a
House banks. The "Times" of Feb. 21 noting this continued: methods for proposing amendments
of the Legislatures
so sharply vote of two-thirds of both houses; or, on the application
. The number of daily applications for loans has fallen off
de- of two-thirds of the States, must call a convention to propose them.
in the past few days that the reduction is interpreted to mean that the
on Amendments proposed in either way become a part of the Constitution
positors intend o throw all possible support to whatever reorganizati
s of the several States
"when ratified by the Legislatures of three-fourth
proposal is finally approved.
thereof, as the one or the other mode of
-fourths
date
of
that
as
a
three
total
making
in
by
loans,
or
conventions
for
applied
129
only
On Feb. 18
by the Congress."
of 104,504, representing net claims of $71,558,000. On the 50% basis ratification may be proposed
lies in the sole
the appliThe choice, therefore, of the mode of ratification
the applicants have a borrowing capacity of $35,779,000 so that
however, point out that amendments
cants still have a margin of about $2,958,000. Of the applications filed discretion of Congress. Appellees,
changes in the character of
may be of different kinds, as, e.g., mere
93.683 have been approved.
hand, and matters affecting the
While the negotiations for the reorganization of both the Bank of United Federal means or machinery, on the one
that the framers of the
States and the Chelsea Bank and Tru,st Co. were continued yesterday liberty of the citizen on the other. They say
Legislatures,
among interested groups, the conferees laid no further details of their plans Constitution expected the former sort might be ratified by
before Superintendent Broderick, he explained. Mr. Broderick said that in since the States as entities would be wholly competent to agree to such
view of the fact that many of the principals planned to spend the week-end alterations, whereas they intended that the latter must be referred to the
and holiday out of town, he expected no new developments before Tuesday. people because not only of lack of power in the Legislatures to ratify,
Samuel Resort% subway contractor, whose counsel, Herbert L. Satterlee but also because of doubt as to their truly representing the people.
convention which had to do with
and David M. Milton of the law firm of Satterlee dc Canfield, have subCounsel advert to the debates in the
mitted a detailed plan of reorganization of the Bank of United States to the submission of the draft of the Constitution to the Legislatures or to
of
the
the
progress
was overwhelmingly adopted.
Mr. Broderick,said he had received no word concerning
conventions, and show that the latter procedure
plan he is sponsoring. He departed for the Adirondacks last night, expecting They refer to many expressions in contemporary political literature and in
derives its
Tuesday.
on
to return
the opinions of this court to the effect that the Constitution
Lamar Hardy of the law firm of Hardy & Hardy, representing a group of
the people alone. In spite of the lack
from
and
people
the
from
sanctions
on,
directors of the Chelsea Bank and Trust Co. Interested in its reorganizati
the changes in statement of
of substantial evidence as to the reasons for
left word before departing on a week-end trip that he had no announcement
proposal until it took final form in the finished draft,
its
from
V
Article
plan.
that
of
progress
the
to make concerning
dealing with amendthey seek to import into the language of the Article
to the proper method of
ments, the views of the convention with respect
United States Supreme Court Holds 18th (Prohibition) ratification of the instrument as a whole.
incompetent to surThey say that if the Legislatures were considered
Amendment Valid—Properly Ratified by States—
liberties when the ratification of the Constitution
people's
the
render
Decision of Judge Clark of New Jersey Reversed. itself was involved, a fortiori they are incompetent now to make a further
the phraseology of Article V, they urge we
By unanimous vote, the Supreme Court of the United grant. Thus, however clearlimitation
on the discretion conferred on the
a
it
into
insert
to
ought
States, on Feb. 24, reversed the decision of Federal Judge Congress, so that it will read, "as the one or the other mode of ratification
appropriate in view of the
William Clark of New Jersey (rendered Dec. 16), who held may be proposed by the Congress, as may bemarmot
be done.
proposed amendment." This
the
of
y
purpose
because
improperl
invalid
nt
Amendme
h
Eighteent
the
voters; Its words
Constitution was written to be understood by the
The
United
States
Supreme and phrases were used in their normal and ordinary as distinguished from
ratified. As to the conclusions of the
is no room for
there
intention is clear
Court we quote the following from the Washington dis- technical meaning; where theinterpolatio
n or addition.
for
excuse
no
and
construction
":
of
Commerce
patch, Feb. 24, to the New York "Journal
v. Ogden, 9 Wheat, 1;
Martin v. Hunter's lessee, 1 Wheat, 304; Gibbons
410;
In acting upon the Government's appeal from the Clark decision, the
Maryland, 12 Wheat, 419; Craig v. Missouri, 4 Pet.,
v.
Brown
complete
was
granted
to
jurisdiction
130 U. S.,
high court declared that Congress
v. Whitworth, 117 U. S., 139; Lake County v. Rollins,
Tennessee
the
right
it
had
to
refer
that
and
the
ratification
v. Cuba RR. 0., 268
decide the mode of
662; Hodges v. United States, 203 U. S., 1; Edward
amendment to legislatures for ratification. Judge Clark, in the New
Story on the ConU. S. 028; the Pocket Veto Case, 279 U. S., 655;
Jersey case involving William H. Sprague and William J. Howey, con- stitution (5th ed., Sec. 451); Cooley's Constitutional Limitations (2d ed.),
tended that to be valid the amendment should have been submitted to pp. 61, 70.
State conventions for ratification rather than to State Legislatures,
If the framers of the instrument had any thought that amendments
Associate Justice Roberts, who delivered the opinion of the court, stated
in purpose should be ratified in different ways, nothing would
differing
in
similar
with
connection
amendments
Which
of
or
that there were a number
have been simpler than so to phrase Article V as to exclude implication
he
them
named
the
Among
raised.
Thirteenth,
be
could
point
meticulous
the same
speculation. The fact that an instrument drawn with such
their
Fourteenth, and the Nineteenth.
fit
care and by men who so well understood how to make language
Concluding, Justice Roberts said that in the national prohibition cases in
the exercise
thought does not contain any such limiting phrase affecting
1920 the court had proclaimed the validity of the amendment and that of discretion by the Congress in choosing one or the other alternative mode
the
Under
then.
court's
taken
had
decision
it now reiterated the position it
of ratification is persuasive evidence that no qualification was intended. of
choice
the Government will continue its efforts to enforce the Volstead law.
This Court has repeatedly and consistently declared that the
the
held
amendment
by
had
invalid
Clark
Judge
said
Justice Roberts
mode rests solely in the discretion of Congress.
was
the
time
Constitution
of
the
adopted
science
political
the
to
1), 253
resorting
Dodge v. Woolsey, 18 How., 331 848; Hawke v. Smith (No.
and by interpreting the intentions of its framers. He pointed out that in U. S., 221; Dillon v. Gloss, 256 11. S., 868; National Prohibition Cases,
had
Court
abandoned those
defending the decision counsel in the Supreme
had modified 253 U. S., 350.
three cases
grounds and broadly urged that the Tenth Amendment
Appellees urge that what was said on the subject in the first mentioned
not
could
give
any such conadded,
he
Court,
Article 5. The Supreme
cited is dictum. And they argue that, although in the last
as
it
had
declared
again
and
frequently
Amendment
Tenth
struction to the
and ratification, has
to be used in proposing It was said the "amendment by lawful proposal
in the past that Article 5 set the machinery
the proposition they now present was
,"
Constitution
the
of
part
become
Constitutional amendments and in submitting the amendments for not before the Court.
strict sense
ratification.
While the language used in the earlier cases was not in the examined
The decision of the United States Supreme Court follows: necessary to a decision, it is evident that Article V was carefully
Congress in
and that the Court's statements with respect to the power of
SUPREME' COURT OF THE UNITED STATES.
made. In the
lightly
idly
or
not
were
ratification
of
anode
the
proposing
contentions now
No. 606, October Term 1930.
National Prohibition cases,. as shown by the briefs, the
William H. Sprague and argued were made—the only difference between the presentation there and
United States of America, appellant, vs.
States District Court for the here being one of form rather than of substance.
William J. Howey. Appeal from the United
The Tenth Amendment provides:
District of New Jersey.
nor prothe Constitution, people."
Feb. 24 1931.
"The powers not delegated to the United States by
or to the
hibited by it to the States, are reserved to the States respectively
to
Mr. Justice Roberts delivered the opinion of the Court.
reserved
people
the
that
of the District
Appellees assert this language demonstrates
LegisThe United States prosecutes this appeal from an order
their own personal liberty and that the
an
over
quashing
345)
Sec.
indict23,
powers
Tit.
themselves
682;
Sec.
18,
Tit.
Government
Court (U. S. C.,
to enlarge the powers of the Federal
ment which charged appellees with unlawful transportation and possession latures are not competent
delegated
of the National in that behalf. They deduce from this that the people never
of intoxicating liquors in violation of Section 3 of Title II
ratification
of
power of choosing the mode
unrestricted
the
12).
to
Congress
the
Sec.
Prohibition Act (U. S. C., Tit. 27,
But the argument is a complete non sequitur.
That Court held that the Eighteenth Amendment by authority of which of a proposed amendment.
not purport to delegate any governmental power
Sees
part
of
to
become
as
so
Article
the
The
Fifth
ratified
been
not
the statute was enacted has
On the contrary, as
to the United States, nor to withhold any from it.
Constitution.
v. Smith (No. 1) supra, that article is a grant of
The appellees contended in the court below, and here, that notwith- pointed out in Hawke
to Congress, and not to the United States. It
standing the plain language of Article V, conferring upon the Congress the authority by the people
the original draft of the Constitution to the
of
part
as
by
was
submitted
and
Legislatures
action
between
choice ef method of ratification, as
assembled.
conventions
in
people
the
latter.
only
by
ratified
be
could
by conventions, this amendment
the light of subsequent events, then the whole of these treaties should be
considered together not by incidental creation of precedents.
It is the purpose of the United States Government to do justice by the
Indians and assist them to citizenship and participation in the benefits of
our civilization. And in the case of these tribes the government has during
the past 18 years expended a total of approximately $3,500,000 out of the
taxpayers' money and they will, in a few years, exceed the totals of these
claims.
HERBERT HOOVER.
The White Howse, Feb. 18 1931.
FEB. 28
1931.]
FINANCIAL CHRONICLE
1535
They deliberately made the grant of power to Congress in respect to Britain and Northern Ireland together have an annual allotment equal to
the choice of the mode of ratification of amendments. Unless and until a little more than 43% of the total quota figure, or 65,321.
that Article be changed by atnendment, Congress must function as the
delegated agent of the people in the choice of the method of ratifications.
of United
The Tenth Amendment was intended to confirm the understanding of Indictements Against President Marcus of Bank
the people at the time the Constitution was adopted, that powers not
States and Others Upheld—Pleas That Jurors Were
granted to the United States were reserved to the States or to the people.
Biased and Steuer Disqualified Are Denied.—The DeIt added nothing to the instrument as originally ratified and has no
Is Final.
cision
delegation
the
people's
upon
limited and special operation, as is contended,
by Article V of certain functions to the Congress.
against Bernard K. Marcus, President
indictments
The
The United States relies on the fact that every amendment has been
of United States, and seven other officers and
adopted by the method pursued in respect of the Eighteenth. Appellees of the Bank
reply that all these save the Eighteenth dealt solely with governmental directors of the bank, were upheld on Feb. 26 by Judge
means and machinery rather than with the rights of the individual citizen. William Allen of the Court of General Sessions. The New
But we think that several amendments touch rights of the citizens, notably
of Feb. 27, from which we quote, added:
the Thirteenth, Fourteenth, Fifteenth, Sixteenth, and Nineteenth, and in York "Times"
of
The court denied two motions by attorneys for Mr. Marcus and five
view of this, weight is to be given to the fact that these were adopted
his fellow-defendants.
by the method now attacked. The Pocket Veto Case, supra.
The motions brought by Charles H. Tuttle, counsel for Mr. Marcus,
For these reasons we reiterate what was said in the National Prohibition
of five of the indicted bankers, challenged the
Cases, supra, that the "Amendment by lawful proposal and ratification, and supported by counsel
on two grounds. These were the alleged disindictments
the
of
legality
the
Constitution."
has become a part of
presqualification of Max D. Steuer, who as Assistant District Attorney
The order of the Court below is reversed.
sented the evidence to the grand jury, and of three of the grand jurors
the
or
in
part
consideration
no
The Chief Justice took
because they owned stock in the bank.
the
decision of this case.
Mr. Steuer's disqualification was challenged by the attorneys for
his dual capacity as Assistant District Attorney
of
ground
the
on
defense
New
in
York,
Appeals
of
Court
The United States Circuit
of his
and Assistant Attorney General in the bank investigation and
on Jan. 5, upheld the legality of the method by which the association with litigations involving the bank.
now
must
bankers
The decision of Judge Allen is final. The indicted
Eighteenth Amendment was adopted, its findings thus being
learned at the office of District Attorney Crain
was
It
trial.
for
prepare
contrary to those of Federal Judge Clark. The appeal of that an early trial may be expected. While District Attorney Crain
the Government challenging the decision of Judge Clark would not venture to predict the probable date of the trial, it was believed
it would be held before the Summer vacation.
was formally presented to the Supreme Court on Jan. 19.
who joined in his moMr. Marcus and those of the indicted bankers
today. It is
tions will again appear for pleading before Judge Allen
that they may ask separate trials.
unlikely
not
considered
into several
National Industrial Conference Board Estimates that
The grand jury, which resumed its inquiry on Wednesday
Immigration to United States in Current Fiscal new aspects of the bank's affairs, met again yesterday and heard Frank
Rapid TranHedley, president and general manager of the Interborough
Year Will not Exceed 155,000.
the bank. Mr.
sit Company, and Frederick Hobbs, both directors of
Gross total immigration to the United States for the fiscal Hobbs will continue his testimony today and will be followed by other
for some time howyear ending June 30 will not exceed 155,000, the National directors. No additional indictments are expected
or more
The grand jury will adjourn today for about ten days
Industrial Conference Board has estimated in a survey on ever.
be reto permit Mr. Steuer to resume his open hearings. These will
the
National
origins
of
quota
operation
immigration and the
sumed on Monday.
in his
On the ground of Mr. Steuer's disqualification Judge Allen
law. In the survey, which was made public Feb. 23, the estithat this contention had already been passed upon
mate indicated a decrease of 87,000 immigrants under the decision pointedandoutfound
wanting.
by the courts
gross total of 242,000 for the fiscal year that ended June 30
1930. • The Conference Board based its estimate on official
figures for the first five months of the current fiscal year. Immigration from Mexico it points out, has been steadily reduced during recent years by the strict application of administrative restrictions and has been estimated at 5,000 for the
fiscal year of 1931 as compared with 12,000 in 1930, 40,000
in 1929, and 59,000 in 1928.
The results of the National origins quota system, which
became effective July 1 1929 and is now in its second year
of operation, have been drastic, the Conference Board
notes. Gross total immigration during 1928 under the old
quota system was 307,000. This number included immigrants from Canada, Mexico and the other countries of the
Western Hemisphere, which are not subject to the National
origins quota restrictions, and included also certain special
exempt classes of immigrants. In 1914 more than 1,000,000
immigrants were admitted from Europe alone.
A brief review of legislation leading up the present system
was made by the Conference Board in its survey. It says:
For several years prior to the outbreak of the World War the average
gross total of immigrants was about one million yearly. During the War
immigration was practically suspended, but this condition did not last long.
The gross total was 141,000 in 1919 and it jumped to 450,000 in 1020. It
reached 800,000 in 1921 which was a year of extensive unemployment in
the United States. It was assumed that, according to previous experience,
immigration would fall off because of our domestic economic situation.
But the contrary proved to be the case, and Congress for this reason enacted
the Dillingham quota limit law, which admitted immigrants from European
countries at the rate of a fixed percentage of the number of natives of these
countries who were already resident in the United States.
More drastic legislation enacted in 1924 reduced the quota to a 2%
basis. This prevailed until the present National origins quota act, which is
a radical change from the former quota system, wont into effect. Under
the preceding law immigrants were admitted from any European country
at the annual rate of 2% of the number of residents of the United States
who were born in that country as shown by the census of 1920.
During the last year of operation under the 1924 statute the total itnmigration from Europe was 157.000 persons. Congress, in enacting the
National origins law fixed an arbitrary limit of 150.000. That number
was to be distributed among the European countries according to a complex
ratio, based upon the total number of immigrants and their descendants
from the beginning of Governmental records as related to the total population at the time of the 1920 census.
The problem was to divide the quota among the European countries
contributing to immigration. The rule established was that each country
might have a share proportional to its contribution to the total population
as it existed in 1920. What the share of each country was to be was determined by a careful analysis of the first census of 1790, the records of immigration since 1820 and estimates of the number of descendnats both of the
population recorded in 1790 and of subsequent arrivals. A provision was
included in the law that no country should have a quota less than 100.
This raised the final quota figure to 154,714, or slightly in excess of the
maximum aimed at.
One illustration shows how this system worked out. It was found that in
1920 more than 43% of the people ofthe United States who were of European
origin were natives of, or descendnats of persons who came here from.
Great Britain and Northern Ireland during the more than three centuries
following the first permanent settlement at Jamestown. Therefore Great
The handing down of the indictments was noted in our
issue of Feb. 14, page 1162. President Marcus was arrested on Feb. 20 for his refusal to answer questions put
in
to him by Mr. Steuer. He was arraigned on that day
released
and
Murphy
Magistrate
before
Court
the Tombs
New
under bail of $250 for hearing on Feb. 24. From the
following:
York "Herald Tribune" of Feb. 21, we take the
Tuttle Moves for Dismissal
to have the complaint disCharles H. Tuttle, his attorney, attempted
corpus proceeding, and thus to
missed as insufficient through a habeas
from a new angle. A writ
attack the validity of the Steuer hearings
the Supreme Court, who
was obtained from Justice Aaron J. Levy, of
made returnable imhad been a borrower from the closed bank, and was
Supreme Court justice.
mediately, but arguable before another
of the other
Had the writ been sustained, neither Marcus nor any questions put
bank officials would have been under compulsion to answer
the arguto them by Steuer. Justice Alfred IL Townley, who heard
complaint was
ment, refused, however, to sanction the writ, and the
up again on
T
thrown
into the magistrate's court, whcre it will come
The same paper in its issue of Feb. 25 said:
eight officers
In an effort to have the felony indictments against the
defense atand directors of the closed Bank of United States quashed,
yesterday with
torneys sprang a surprise on the prosecuting authorities
Sessions, that
the contention before Judge William Allen, of General
in the
three of the members of the grand jury, which had brought
institution and that
indictments, had been stockholders in the closed
by
dictated
prejucdhiacreges should therefore be set aside as having been
th
into the bank's
Max D. Steuer, directing counsel for the dual inquiry
whereupon Judge
affairs, waved the argument aside as ridiculous,
this afternoon to
Allen gave attorneys for both sides until 5 o'clock
point.
submit briefs, following which he will decide on the
president of the
The contempt proceeding against Bernard K. Marcus,
himself for exambank, in the magistrate's court for refusal to submit announcement by
on
ination by Mr. Steuer was withdrawn yesterday
an accord had
Paul J. McCauley, Assistant Attorney General, that
Marcus, as to the
for
been reached with Charles H. Tuttle, counsel
stand. While neither Mr.
latter's behavior henceforth on the witness
accord meant, it was
Steuer nor Mr. McCauley would say what this refuse to answer only
to
understood that Mr. Marcus was to be permitted
him, and there was a possuch questions as might tend to incriminate
in private. The Atsibility that he might henceforth be interrogated
make this testimony
torney General's office, however, has authority to
public at its discretion.
money had been
Fresh revealations on the manner in which the bank's
the hearing yesterday
employed proceding its collapse were offered at
the bankruptcy
of
matter
the
in
before Referee Robert P. Stephenson
of four of the bank's affiliates—Bankus Corporation, City Financial,
Municipal Financial and Delaware Bankus Corporations.
It was disclosed that within the period of a month, beginning July
16, 1929, the bank had loaned out to its affiliates, subsidiaries and
directors about $30,000,000, a sum nearly 75% of the bank's $42,000,000 of capital stock, surplus and undivided profits. Of this $30,000,000
the directors had authorized $8,000,000 in loans to several real estate
subsidiaries; $10,000,000 to directors of the institution, and $12,000,000
to three of its affiliates.
For more than two months the Irving Trust Company, receiver for
the affiliates, has been striving to obtain a statement of the assets and
liabilities of these corporations from their officers, and yesterday Referee
Stephenson authorized James N. Rosenberg, attorney for the receiver,
1536
FINANCIAL CHRONICLE
to have the officers of these affiliates, who are identical with the officers
of the closed bank, cited for contempt in their refusal to file such an
accounting.
From the New York "Times" of Feb. 26 we take the
following:
Disregarding the protests of counsel for indicted officers and directors
of the Bank of United States against the legality of the county grand
jury which has brought in the indictments, Max D. Steuer as Assistant
District Attorney opened the second phase of the grand jury's inquiry
into the bank's affairs yesterday by beginning presentation of evidence
on which additional indictments are expected.
The grand jury heard the evidence despite the fact brought out by
attorneys for six of the eight indicted bankers that three of the grand
jurors are stockholders of the bank and therefore not qualified to serve.
A brief emphasizing this act was presented to Judge William Allen of
the Court of General Sessions late yesterday by Charles H. Tuttle,
counsel for Bernard K. Marcus, president of the bank, as part of the
action brought by the defense for the quashing of the indictments.
Judge Allen will decide today on the motion for dismissal.
Six of eight directors of the bank summoned as witnesses before the
grand jury reported yesterday to the District Attorney's office when
the grand jury reconvened after a recess of more than two weeks. All
signed waivers of immunity. Herman A. Metz, former City Controller,
was the only one heard by the grand jury, however. He was before
the grand jury for about two hours and is to continue his testimony
later.
The other directors who appeared and waived immunity were Frank
lIedley, president and general manager ot the Interborough Rapid
Transit Company; George C. Van Tuyl, former State Superintendent of
Banks; Colonel Arthur W. Little, Frederick G. Hobbs and Edward Lewis.
Abe N. Adelson, President of the Abenad Corporation,
said to be one of the largest corporate borrowers of the
Bank of United States, of which it was an affiliate, would
not endanger his health by appearing as a witness in the
investigation of the bank's failure, according to a medical
report on his condition furnished on Feb. 21 to the Attorney General. This was noted in the "Times" of Feb. 22
which stated that:
Mr. Adelson had declined to appear as a witness and
had produced an affidavit by his physician asserting that
he was physically unable to testify.
Central State Reserve Bank Asked for Wisconsin—
Bill Provides Public Funds Be Deposited in Institution or Its Members.
A central State Reserve Bank would be set up in Wisconsin under the terms of a bill (112, A) introduced in the
Legislature by Mr. John W. Grobschmidt (Prog. Rep.), of
,Milwaukee. This is learned from Madison (Wis.) advices
to the "United States Daily," which, in giving the text of
the bill, said:
The bill declares the primary purpose of the bank to be "to more
effectively concentrate the banking resources of the independent banks
of the State, under public control, with a view to promoting the agricultural, commercial; and industrial development of Wisconsin and to safeguard this State from domination by great holding companies and combinations in the banking field."
The bank would be located at Milwaukee, but branches might be established elsewhere. ,State banks and trust companies would be required to
subscribe to the stock of the Central Reserve Bank. A National bank
might subscribe and become a member, if not a member of a banking
chain or group, or if a majority of its stock is not owned or controlled
by a foreign corporation. Public funds would be deposited in the Central
Reserve Bank or its member banks under the provisions of the bill.
[vol.. 132.
(2) Any National bank within the State of Wisconsin, the majority of
whose stock is not owned or controlled by a foreign corporation, association or trust, and which is not a member of any banking chain or group,
may become a subscriber to the stock of the Central State Reserve Bank
upon the &nine conditions as State banks and trust company banks, and
in that event shall be entitled to all of the privileges of a member bank.
219.04. The capital stock of the State Central Reserve Bank shall be
divided into shares of $100 each. The outstanding capital stock shall
be increased from time to time as member banks increase their capital
stock and surplus, or as additional banks reduce their capital stock or
surplus or cease to be members. Shares of stock shall not be transferred
or hypothecated. When a member bank increases its capital stock or surplus it shall thereupon subscribe for an additional amount of capital stock
of the Central State Reserve Bank equal to 6% of such increase, payable
as provided for the original subscription. A bank desiring to become a
member bank after organization of the Central State Reserve Bank shall
subscribe to capital stock of the Central State Reserve Bank in an amount
equal to 6% of its capital stock and surplus, payable as provided for
subscription by original member banks.
When a member bank reduces its capital stock and surplus it shall
surrender a proportionate amount of its capital stock in the Central State
Reserve Bank, and when a member bank voluntarily liquidates it shall
surrender all of its capital stock in said bank. When a member bank
shall be declared insolvent and when the majority of the stock of any
member shall come under the ownership or control of a foreign corporation
or become a member of a banking chain or group the stock in the Central
State Reserve Bank which such bank owns shall be cancelled, without
impairment of its liability. In the event of the surrender or cancellation
of any stock in the Central State Reserve Bank, a sum equal to the cash
paid subscriptions on such shares shall be paid to the member bank or its
reserve, less any liability of such member bank to the Central State
Reserve Bank.
219.00. The by-laws of the Central State Reserve Bank shall provide
for the building up of a surplus fund. All net earnings not required for
the payment of expenses or to be transferred to the surplus fund shall be
paid annually as dividends to member banks in proportion to the paid-in
capital stock.
219.06. The Central State Reserve Bank shall not begin operations until
at least $2,000,000 of its capital stock shall have been subscribed. The
articles of incorporation shall be filed with the Commissioner of Banking
and shall be subject to his approval. Amendments to said articles may be
made as in the case of State banks.
219.07. The Central State Reserve Bank shall have all the powers of
State banks and in addition thereto shall have power to:
(1) Act as a reserve and correspondent bank for its member banks;
(2) Assist member banks in finding profitable investments for their
funds, preferably within the State of Wisconsin, during periods when
they have surplus funds for investment ;
(3) Assist member banks in finding funds to enable them to better
serve the people of their communities in periods of unusual demands for
funds, by loaning to them any of the funds of the Central State Reserve
Bank and arranging for loans from member banks having surplus funds;
(4) Discounting and rediscounting agricultural and commercial paper
for its member banks, under rules to be adopted by the board of directors,
subject to the approval of the Commissioner of Banking.
219.08. After the Commissioner of Banking, pursuant to section 221.06,
shall have granted authority to commence businests to the Central State
Reserve Bank he shall cause a notice to this effect to be published in the
official State paper. Thereafter no State, county, city, village, town or
school district funds, and no funds belonging to or under the control of any
political subdivision of the State or public or quasi-public corporation,
shall be deposited in any bank other than the Central State Reserve Bank
and its member banks.
Existing Contracts Protected.
the
Provided, that this section shall not affect existing contracts nor
designation of some other bank as a public depository for a definite period
of time which has not yet expired. All public funds in banks not connected
with the Central State Reserve Bank shall be withdrawn within 60 days after
publication of the notice in the official State paper herein provided, or at
the end of the contract or other period when all such funds may legally be
withdrawn.
219.09. All of the provisions of the statutes applicable to State banks
shall be applicable to the Central State Reserve Bank, except such as are
inconsistent with the provisions of this chapter. The Commissioner of
Banking shall have the some supervision over the Central State Reserve
Bank as over State banks and in addition shall have power to require any
changes in the practices and policies of such bank which are not in accord
with the purposes for which it is created, as declared in this chapter, or
contrary to sound banking principles. Upon complaint of any member bank
that it is discriminated against by the Central State Recerve Bank, the
Commissioner shall conduct an investigation and shall issue such orders as
the facts may warrant.
Section 2. This act shall take effect upon passage and publication.
Text of Measure.
The bill, as introduced, follows in full text:
Section 1. A new chapter is added to the statutes to read:
Chapter 219: Central State Reserve Bank.
219.01. There is created a Central State Reserve Bank, the entire stock
of which shall be owned by the member banks. Such bank shall be
governed, subject to the supervision of the Commissioner of Banking, by a
board of directors to be composed of the President of each member bank,
who shall elect. the officers of the bank from among their own number.
Said bank shall be chartered as a banking corporation under the laws
of this State and its principal office shall be maintained in the City of
Milwaukee, but branch offices may be established elsewhere as needed with
the approval of the Commissioner of Banking. Its primary purpose is
declared to be to more effectively concentrate the banking resources of
Economist, Says British Pays
the independent banks of the State, under public control, with a view to Francis W. Hirst, London
promoting the agricultural, commercial and industrial development of
United States Twice What Is Due on Account of
Wisconsin and to safeguard this State from domination by great holding
War Debts—Bases Figure on Purchasing Power of
companies and combinations in the banking field.
Gold in 1918 and Now—Asserts We Also Suffer
219.02. Within 30 (lays after the taking effect of this section there shall
Central State Reserve Bank.
Through Tariff Barriers.
be held a meeting for the organization of the
The time and place of such meeting shall be fixed by the Commissioner of
Francis W. Hirst, former editor of "The Economist,"
Banking and notice thereof shall be given to each State bank and trust
A
of
draft
meeting.
such
to
articles
prior
days
on Feb. 11 at the National Liberal Club that a
declared
10
least
at
bank
company
Bank shall be prepared prior fair
Reserve
State
Central
the
of
incorporation
of
estimate of what Great Britain should now be paying
to such meeting by the Attorney-General, pursuant to instructions from the the United States annually on account of war debts would be
Commissioner of Banking. At such meeting an organization committee
of twice that amount. The New York
shall be elected, stock subscriptions taken, and by-laws adopted for the $82,500,000, instead
"Times" in a London message, in thus reporting his remarks
government of the bank.
Requirements of Bill.
quotes him as follows:
219.03. (1) Each State bank and each trust company bank shall sub"When the United States joined the Allies," said Mr. Hirst, "and began
Reserve
Bank
a
in
State
sum
Central
the
of
stock
capital
scribe to the
to lend them munitions, food and metals which were recorded on bonuses
of
one-third
subwhich
surplus,
and
capital
paid-up
its
of
6%
equal to
at the inflated prices then prevalent, the Allies were already exhausted.
scription shall be payable on call, one-third within three months, and one- and every new loan reduced their capacity to repay.
"But, in addition to the capacity to repay must be considered in this
third within six months thereafter. Upon failure of any State bank or
for France,
trust company bank to subscribe to the stock of the Central State Reserve case willingness to receive. Unfortunately for us, as well as
when
subscription
its
pay
to
failure
Italy and Belgium, the tariff of the United States has become so high
Bank in the required amount and upon
days' notice, shall revoke the , that it forms a very real obstruction to repayment in goods and,consequently
due, the Commissioner of Banking, upon 10
promotes the flow of gold from Europe to the United States, which discharter of such bank.
FEB. 28
1931.]
FINANCIAL CHRONICLE
locates exchanges and interferes with the natural movements ofinternational
trade.
Cites Historical Parallel.
"Parallel cases occurred after the War of American Independence, but
the other way. The peace treaty provided for the payment of commercial
debts due from America to British merchants. A note was addressed
to the British Government, signed by Washington, Hamilton and Jefferson, which explained how the British tariff and other restrictions robbed
America of its means of repayment.
"The broad principle laid down then and still applicable was this: That
the creditor demanding repayment of a debt was not entitled to obstruct it,
still less to tax it. If I ask a man to repay me a sum of money, I am not
entitled to charge him an entrance fee when he comes to my office.
If
I have lent him goods and he returns the goods by parcel post, I am
not
entitled to charge him an extra 10,20,50 or 100% on the value of the
packet.
"Since the trade slump in the United States bankers, business men and
politicians on the other side of the Atlantic have been discussing
these
problems in a businesslike spirit, and I am bound to say in a magnanimous
spirit,recognizing as we do the enormous value to Anglo-American
good-will
and the enormous importance of co-operation between the two grcat
AngloSaxon nations.
"I shall not follow out their proposal, but I want to suggest in outline
a remedy which deserves, I think, the attention of both Washington
and
London. I start from the principle that contracts and treaties of
indebtedness are binding, but these obligations, especially when contracted
not between a Government and its own citizens, but between one Government
and another Government, should be regulated, as I shall try to show later,
"if the currency in which they are made alters substantially in value.
Links Debts and Prices.
"There can be and is at tho present time a very important connection
between debts and prices. If prices rise or fall, the gold debt—and all war
debts are gold debts—becomes proportionately lighter or heavier.
"The true measure of the war debt is not gold but the index number
of gold wholesale prices. At the present moment the purchasing power
of
an ounce of gold in commodities is about the same as in the year
before the
war, but it is double or more what it was on the average in the last two years
of the war.
"I reckon that in 1917 and 1918, when the British war debt to the United
States was incurred, the prices of munitions, provisions and war materials
were at least double what they are to-day, and therefore the British
annual
payments of $165,000,000 are really payments of $330.000,000. In other
words, if we were repaying fairly to our American allies what they
lent,
we should be paying in interest and principal, not $165,000,000,
but $82,500.000 yearly.
"A few weeks ago in a discourse to the Liverpool Chamber of Commerce
Lord D'Abernon called the attention of the Government to the
disastrous
effect of the slump in prices and of the enormous rise in the purchasing
power of gold during the last few years on debtors and creditors all over
the
world. The effect is seen on a tragic scale in Australia and Brazil, but
the
Injustice to debtors, whether individuals or States, is world-wide, and
the
danger to dreditors is not less to wealthy creditors like Holland, which are
deeply concerned about their trade and investments and should be equally
ready for a concerted effort to stabilize the value of gold and to
correct
and to correct any fears there may be of the incidence of debt.
Sags Case Is a Strong One.
"The case of debts between States, especially war debts and reparations,
as a case for readjustment, is overwhelmingly strong and represents no
practical difficulties, whereas that of individual debtors or States which
have borrowed for railways or other productive purposes at various times
are highly complicated. The only possible remedy lies in providing against
violent fluctuations of currency."
Mr. Hirst quoted from a letter he had recently written to "The London
Times", in which he said Britain imposed customs duties on goods borrowed
during the war, hence Stanley Baldwin might fairly have stipulated that
untaxed goods be repaid in untaxed goods, or at least that repayments
in gold be subject to the index number regulating them as the purchasing
power of gold fluctuated.
number regulating them as the purchasing power of gold fluctuated.
Then he quoted from a letter written to him by Oscar Crosby, Assistant
Secretary to the United States Treasury in President Wilson's Administration, in which Mr. Crosby said:
It is accurate enough for general discussion to say that Our advances
to
your Government were made in 1917 and 1918; also that they were for munitions, cotton, food and metals. There was
one exception, namely, about
$300.000,000 for silver bullion sent to India.
Mr. Crosby added that most of this money was spent in the United
States
but that several hundred million dollars were spent in Canada,
Australia,
Argentina, Holland and Spain. Goods bought from the dominions or
from
neutrals should be excluded from the index number revision,
said Mr.
Hirst. Mr. Crosby, in his letter, said it was more than
conservative
take the average prices in 1917 and 1918 as double the present prices. to
Railway Consolidations Endorsed by R. C.Stephens
on,
President of American Bankers Association.
Fair treatment for the railroads in respect to highway
motor competition was called for by Rome C.
Stephenson,
President American Rankers' Association, speaking
as guest
of honor of the Advertising Club of New York at its
special
membership luncheon in New York on Feb. 18. Mr.
Stephenson also strongly endorsed "sound economic railway
consolidations" and praised President Hoover for his
initiative
in this respect "I am very strongly of the opinion that
one
of the measures which would help materially to put
back
business where it belongs is approval of the four
-system
plan of railroad consolidation as announced recently
following negotiations instituted by President Hoover,"
said
Mr. Stephenson. He added:
"Its adoption by the Inter-State Commerce Commission would
tend to
stabilize the transportation industry, facilitate operation, and
exert a
favorable influence on business in general.
"It is a fact well known to business leaders that our railroads
are
now facing a crisis. Not only do they need protective laws to
meet
competitive situations arising from increased use of our highways
and
waterway's by other carriers, but they need unification such as the
proposed
four-system plan provides. Our President has acted wisely in assuming
a
leadership in this respect, and his move deserves the support of
every
clear-thinking citizen."
1537
At the outset of his address Mr. Stephenson declared that
the railroads have served this country "so superlatively
well that we are prone in our public affairs to overlook our
dependence upon them and our obligations to them." Declaring that the past, present and future progress of the
Uilted States is inseparably bound up with the welfare
of the railroads, Mr. Stephenson mid: "In neglecting just
consideration for them we are even more neglectful of the
best economic interests of the public. These public interests
are paramount and they are nowhere more greatly liable
to harm than through adverse treatment of the railroads."
Calling attention to the tremendous direct financial stake
the people of the country have in the railroads, with outstanding railroad notes and bonds and preferred and common stocks aggregating a total of $22,000,000,000, with
$3,000,000,000 paid yearly in wages, half a billion dollars in
interest to bondholders, and another half a billion in dividends to stockholders, to say nothing of almost $400,000,000
contributed annually in taxes to the support of the Government, the banker said the vitalizing effects on our national
economic life exerted by these direct distributions were
Incalculable. Mr. Stephenson sketched the influence of the
railroads in the development of the country and their rapid
growth until in 1920. Since then, he pointed out, there has
been no new construction and an actual slight decrease in
mileage. In this period freight traffic has grown, he said,
but at a decreasing rate, while passenger traffic declined
alarmingly, dropping more than one-third in the last 10
years. Railroad earnings have suffered during recent years,
said Mr. Stephenson, though they have shown some improvement since the war period, due, not to favorable treatment
or propitious traffic conditions, but to hard-won advances
in internal operating efficiencies and economies produced
by railroad management itself. Enforced economies have
been gained in part at the expense of employment, he added,
and there were 320,000 fewer employees in 1930 than in
1923. He went on to say:
"We are confronted with the question as to how much more the public
econon:ic interest will stand an invasion of the welfare of the railroads
by forces and difficulties not of their own creating and not within the
scope of their own unaided powers to combat. I refer especially to new
oompetitions that are undermining the hard-earned position of the railroads, net only with the aid of natural economic forces but also through
the aid of government policies which, positively or negatively, tend to
give these competitors undue advantages over the railroads.
"It goes without saying that the railroads have no right, nor claim
any so far as I have been able to discern, to complain at legitimate competition in the field of transportation, for the public is entitled to the best
possible transportation at the lowest practical cost. But equally does It
go without saying that this cannot be fairly brought about by using,
directly or indirectly, the taxing powers of government to enable competitive methods of transportation to do things they could not otherwise
do as unaided private enterprises, particularly when such action impairs
the invested rights held in good faith by great masses of our people in
established enterprises that are serving the public welL"
Mr. Stephenson declared that the railroads constitute the
greatest single industry in America to which the investments and the wage-earning abilities of our citizens are
entrusted. "If this great public trust is to be protected,
the railroads must be able to earn more than just enough to
pay interest on their bonds and a tolerable return to their
stockholders," he asserted. "They must be enabled also
to earn a surplus in good years to set aside against periods
of depression and at the same time continue to carry out
improvements, from which the public benefits but which
do not add to earning capacity."
Mr. Stephenson said it was not his purpose to argue
against such competitive transportation as the highway
passenger motorbus and motor truck as such, when conducted under proper conditions and in keeping with public
welfare and benefit. He declared, however, there is need
for serious consideration whether such competition is being
developed under conditions that are unfair to the railroads,
because either the outright or obscure aid of government
policy is the deciding economic factor in that competition.
Citing figures which showed the remarkable expansion in
common carrier passenger bus transportation in recent years
during which there has been a startling drop in railroad
passenger traffic, and the tremendous inroads into the
freight business of the railroads made by highway motor
trucks during the same period, Mr. Stephenson said that
where competing motor rates are below rail rates, the
situation calls for the relentless analysis of just the conditions under which this competitive threat to the earnings
of the railroad is able to operate. Railroad rights of way,
1538
FINANCIAL CHRONICLE
he declared, represent tremendous capital investments, on
which the railroads have also heavy current costs to meet.
He added:
this is on
"They pay every day a million dollars in taxes and most of
dollars
their rights of way. Also they spend daily over two million
the motoradditional for the proper maintenance of way." He asserted that
sense that the
buses have not had to pay for their rights of way in any
railroads paid for theirs.
by public
built
highways
"They have simply taken possession of public
y made those
funds, both State and national, and they have extensivel
e for private
highways vastly less comfortable, less safe, and less serviceabl
creation and
motorists and others who are contributing chiefly to their
maintenance."
ip
Mr. Stephenson pointed out that in 1929 motor ownersh
totaled
nation
the
in
taxes
and
fees
g
license
and operatin
by private
$930,000,000, the great bulk of which was paid
ial traffic
commerc
purely
the
by
not
owners,
ile
automob
highway creavehicles. He asked whether the portion of
trucks is comand
ses
motorbu
by
for
paid
upkeep
tion and
s. "Is
highway
those
of
make
mensurate with the use they
asked,
he
ned,"
determi
be
to
fact
of
question
a
it not
in
is,
effect,
traffic
truck
and
s
"whether or not motorbu
charge
a
proper
escape
to
allowed
being
by
ed
subsidiz
being
and are thereby
for rights of way and maintenance of way
against the railroads
ion
competit
keener
far
a
offer
to
able
of how
than they otherwise would? It involves the question
with
common carrier motor traffic rates would compare
ion
competit
into
come
they
which
with
those railroad rates
if their schedules were based on the equivalent of an added
capital investment to pay for the rights of way which they
are now getting free and also if to present operating costs
were added the cost of maintenance of way as represented
by their fair portion of highway upkeep. Under such conditions would bus passenger and truck rates command the
same place in public esteem and demand relative to railroad
travel that it now does?"
Mr. Stephenson declared that all these matters should be
thoroughly inquired into by competent public bodies, both
State and national, with a view of determining the equities
and basic public economic interests involved, "particularly
In respect to their effects upon the nation's stake in its
railroads." He continued:
"I venture to say that such inquiries would show whether it is to the
(Vol- 132.
was
531 Fifth Avenue Corp. to Colonel Ruppert, as a foreclosure action
of
simply a demand for money due, and this was produced by the disposal
the property for cash.
The property was held at $9,000,000 and has a first mortgage of
It is assessed
$5,000,000 at 5% held by the New York Life Insurance Co.
any
by the city at $7,300,000. The transaction was a cash sale without
exchange of other properties.
few years
The Jacob Ruppert Realty Corp. purchased within the last
of Madison
the 25-story Johns-Manville Building, at the southwest corner
Avenue Building,
Avenue and 41st Street, and the 22-story 270 Madison
at the northwest corner of 39th Street.
ITEMS ABOUT BANKS, TRUST COMPANIES, &c.
e of a
Arrangements were reported made for the purchas
New York Stock Exchange membership through the sale
of four rights for $322,000. The last preceding sale was for
$300,000.
the sale of a New
Arrangements were reported made for
York Curb Exchange membership for $137,500 an increase
of $17,500 over the last preceding sale.
The New York Cotton Exchange membership, of Earle H.
for
Rodney was reported sold thisiweek to Irving Weiss
g saldwas for $19,000.
$18,000. The last precedin
-4--The second membership of Alvin L. Wakhsman in the
to Frank
National Raw Silk Exchange was reported sold
the last
as
price
same
the
is
This
W. Lovatt for $1,450.
was
preceding sale. The second membership of Irving Weis
$1,500.
for
Elliman
B.
A.
to
sold
reported
week for the sale
Arrangements were reported made this
of two Chicago Stock Exchange memberships,one for $20,000
and the other for $23,000. The last,preceding sale was for
$19,000.
With President James H. Perkins and senior officers of
the bank serving as a reception committee an hourly average of 3,851 visitors passed into the new City Bank Farmers
Feb.
es
Trust Co. building through its two main entranc on
24. The occasion was the formal opening of the new buildon
ing at 22 William Street, and the return of the instituti
conand
Flowers
1929.
to
to the site it occupied from 1866
firms in
gratulatory messages from banks and business
ion
institut
the
by
received
were
Overy part of the world
these columns
in
noted
was
as
,
building
The
during the day.
public interest to let things remain as they are, whether the situation
satisfy the equities last week (page 1356) is 54 stories high. With the excepcalls for a new basis of motorbus and truck taxes to
action
as
drastic
such
the
for
call
Mohegan granite,
of the case or whether it would
tion of the first story, which is made of
exclusion of this traffic from our public general highways, and the requireRockwood Alawhite
of
ted
of its own private the entire building is construc
ment that, even as the railways, it provide as a part
building, pracnew
this
own maintenance of
of
for
its
and
ion
of
way,
rights
complet
own
its
t
the
investmen
With
stone.
bama
capital
National City
the
of
ents
departm
way out of operating income."
tically all the downtown
the National City
and
Co.
Trust
Farmers
Bank
City
Bank,
$9,000,000 Paid by Col. Ruppert for Fifth Avenue Office Co. will be housed in this building and in the Head Office
S.
U.
at
of
Branch
44th
Bank
g
Housin
re
two buildings
Structu
of the bank, known as 55 Wall Street. The
Street—Sale Ends Foreclosure Suit Brought When
e Place
Exchang
over
ng
extendi
bridge
are connected by a
Closing of Bank Tied Up Funds for Payment on
building is
new
the
of
floor
main
The
floor.
9th
the
on
Mortgage.
of the
devoted to a spacious banking room and to the office
signed
s
31,
for
Jan.
contract
on
,
Ruppert
Jacob
officers.
Colonel
senior
of
staff
his
and
Perkins,
II.
James
t,
Presiden
the purchase of the 36-story office building at the northeast The section of the main floor fronting on Hanover Street
The
ion,
Avenue.
Fifth
transact
and
Street
44th
corner of
and for some distance on Exchange Place and Beaver Street,
which involved about $9,000,000, was precipitated to a large will be occupied by the Canadian Bank of Commerce which.
extent (according to the New York "Times" of Feb. 1) by for many years prior to the erection of the new building.
the filing on Jan. 29 of a foreclosure suit against the 531 has occupied quarters on this plot. The entrance to the
Fifth Avenue Corp., Max Goldstein, Presidentt, which owned main banking floOr and the main banking room of the trust
the property, and the closing of the Bank of United States, company is through a large archway at the intersection
which tied up the funds of the owning corporation and of William Street and Exchange Place. A double curving
caused it to default on interest charges. The "Times" also stairway of Altico and Rosatto marble leads from the
said, in part:
banking room of the trust company.
Avenue entrance of the structure rotunda up to the main
Carved in large letters over the Fifth
stone medalBuilding."
Surmounting the entrance archway is a huge
are the words: "Bank of United States
industries
to two stories in
of
the
tion
equivalent
floor,
illustra
second
the
cal
on
are
allegori
offices
lion carved in an
The bank's
Avenue, and in addition the bank has
Fifth
on
Trust
feet
Farmers
100
Bank
City
fronting
the
height,
and incorporating the seal of
safe deposit vaults in the basement.
e Place
on
Exchang
is
e
entranc
and
one
of
s,
the
building
fined
Delmonico'
of
site
Co. The general
The structure, erected on the
eleven
zone, was opened for occupancy in 1927.
and is a great archway of granite,in which are carved
and largest in the Grand Central
fronting
125.5
on
feet
Fifth
building,
the
by
covered
States and forUnited
The entire property
the
of
tative
represen
was purchased in April 1926 while the modern coins
Avenue by 140 feet on 44th Street,
some
present owning syndicate. It was eign countries in which the National City Bank has
building was being constructed by the
archway of coins
and Mandelbaum & Lewine, operators, who
this
g
Flankin
.
branches
l
bought from Max N. Natanson
of
its principa
structure by H. Craig Severance,
embodying the
had the plans drawn for the present
are two large medallions of carved stone
architect.
Co., with figCity
l
Nationa
National
the
the
Harriman
Bank
by
1925
and
May
in
Bank
property
of
City
the
seals
The sale of the
was one of the
Lewine
syndicate
The outm
&
tation.
Mandelbau
Transpor
Natansonand
ce
Commer
Interests to the
season. The price paid for the ures representing
of the building
sensational deals of the active real estate
exterior
the
of
features
ve
decorati
g
.
standin
plat was reported to be about $5,000,000
from the 18th
are the great human heads that look down
Suit Based on Mortgage.
on interest due on the story. These represent giants of finance. They are of two
based
is
week
last
filed
action
e
The foreclosur
these
assigned by the New York Dock
second mortgage of $1,000,000, which was
pleasant and seven scowling. Each of
Benenson and Robert E. Dowling, types—seven
Trade Facilities Co., controlled by Oregoni
eagles. The buildby
side
either
on
flanked
mortgage.
is
trust
giant
heads
the
to the Irving Trust Co. as trustee under
Dolson Co., which in con- ing contains a telephone switchboard said to be the largest
Frederick A. Wyckoff, President of the Wood,
the transaction, said yesterday
negotiated
Co.,
It has 8,000 extension lines, 800
junction with Paul Saxe &
by the of its kind in the world.
foreclosure suit had no bearing on the sale of the property
that the
FEB. 28 1931.]
FINANCIAL CHRONICLE
central office trunks, 800 tie-lines and about 80 operating
positions. When fully equipped, this system will be capable
of handling a daily total of 39,000 outgoing calls, 59,000
Incoming calls and 51,000 inter-officd calls.
The following is from the New York "Journal of Commerce" of Feb. 27:
At the offices of each of the three banks involved unqualified denial was
given to the reports current in financial circles yesterday that the Irving
Trust Co., the Corn Exchange Bank Trust Co. and the Public National
Bank It Trust Co. are planning to merge.
Late in the day on Wednesday heavy buying of Irving Trust stocks led to
a running up of quotations. The rise in Irving Trust shares was rapidly
followed by a general advance in bank stocks, giving rise to numerous and
widespread rumors of new plans for mergers.
The market yesterday, however, was subjected to heavy profit taking during the final hours of trading. Irving Trust stock declined from the previous
closing quotations of 43 bid, 45 asked, to 41% bid, 43% asked. Public
National continued to advance and moved from the Wednesday quotations
of 60% bid, 63% asked, to 62 bid, 65 asked. Shares of Corn Exchange
stock declined from 129 bid, 133 asked, as of the close on Wednesday, to
126 bid, 130 asked. Other bank stocks for the most part moved downward,
but did not completely cancel the previous advance.
Bankers declared that if the upward movement of the bank stock market
had been based upon the expectation of merger announcements, buyers were
misled. For the present, it was held, merger proposals are unlikely.
There have been repeated rumors of plans to merge the Corn Exchange,
which has a large branch system. The Chase at various times was reported
to have made tentative offers.
1539
old. In 1884 Mr. Kilborne formed the brokerage firm of
A. W. Kilborne & Co. of which he was head, and bought a
seat on the New York Stock Exchange. After completing
a career of 50 years in Wall Street he retired in 1919 from
the firm which soon after his retirement went out of business.
Edward Reeve-Merritt, retired banker, died on Feb. 22.
He was 80 years old. Mr. Reeve-Merritt retired in 1913
from the Union Trust Co. of New York of which he had
been a Vice-President having worked to that office from a
clerk. A few years after his retirement this institution
merged with the Central Trust Co. and the name was
changed to the Central Union Trust Co. It is now the
Central Hanover Bank & Trust Co. Mr. Reeve-Merritt
was one of the founders of the New York Athletic Club.
Benjamin F. Howell, for the past ten years President of
the Suffolk County National Bank, Riverhead, L. I., and a
former Supervisor of the Town of Riverhead, died on Feb. 21
at the age of 52 years. Mr. Howell had been connected with
the Suffolk County National Bank for 37 years and had
served as Supervisor of the Town of Riverhead for three
terms.
Louis M. Brown, President of the National Bank of Glens
W. A. Nichols of the London staff of the Central Hanover
Bank & Trust Co. has arrived in New York for a two
months' visit. Mr. Nichols is Manager of the representative
office of the company at 27 Regent Street in the West End
of London, which was opened last May to supplement the
downtown representative office at 1 Gracechurch Street.
Austin L. Babcock has been e- lected President of the Morris
Plan Corporation of America, organizing company of Morris
Plan industrial banks, it is announced by the Industrial
Finance Corporation. Mr. Babcock, who, since March, 1929,
has been Vice-President of the Industrial Finance Corporation, was formerly Assistant Vice-President of the Guaranty
Trust Co. of New York and Vice-President of the Bank of
Bay Biscayne, Miami. He was Trustee of Colgate University
for four years and now holds directorships in a number of
Industrial banks, including the Morris Plan Co. of New
York; Morris Plan Bank of Richmond; Morris Plan Co.
of Boston; Morris Plan Bank of Cleveland, and the Morris
Plan Bank of Detroit.
The Irving Trust Co. of New York announces the appointment of Willard F. Place, Asst. Vice-President of the New
York Central RR., as a member of the Advisory Board of its
Midtown Group of Banking Offices. This group includes
the Fifth Ave. office, Fifth Ave. at 34th St.; Lincoln office,
42nd St. at Park Ave.;Park Ave. office, Park Ave.at 46th St.
and 59th St. office, 59th St. at Park Ave.
The uptown office of the Fulton Trust Co. of New York
located at 1002 Madison Ave., between 77th and 78th
streets, will be open for business on March 2. It will be
operated under the management of Henry McC. Bangs,
Vice-President and Charles M. Liske, Asst. Secretary.
The New York State Banking Department announced on
Feb. 27 that approval had been given to an agreementfor the
merger of the Irving Safe Deposit Co. into Columbia Safe
Deposit Co. under the title "Irving Safe Deposit Co."
Falls, N. Y., an attorney, and connected with many local
industrial activities, died on Feb. 21. Mr. Brown who vvai
70 years of age, was graduated from Harvard University in
1880. He was President of the Imperial Wall Paper Co.,
the Imperial Color Works and the Yorke Shirt Co., and was
a director of the Glens Falls Post Co., publishers of the Glens
Pant "Post-Star" and the Glens Falls "Times."
The Webster & Atlas National Bank of Boston announces
that Rex T. Crandall has become associated with the institution and will act as Assistant to the President. Originally
from Buffalo, N. Y., Mr. Crandall takes to the Boston bank
an unusually broad banking experience, baying had important affiliations in New York, Brazil, Cuba, Panama
and several South American cities. While in New York,
Mr. Crandall was connected with the Seaboard National
Bank.
Stephen W. Sleeper, of Sleeper & Dunlap, Boston realtors,
has been made a director of the New England Trust Co. of
Boston. Mr. Sleeper is a director of the Boston Real Estate
Exchange, member of the Boston Schoolhouse Commission,
director of the Metropolitan Storage Warehouse Co., VicePresident and director of the National Association of Real
Estate Boards, member of the corporation of the Robert B.
Ass
Brigham
m
tes.Hospital, and a trustee of the Real Estate
Wallingford, Conn., advices on Feb. 201 to the Hartford
"Courant" reported that on that day Karl B. Reynolds re
signed as Secretary and Treasurer of the Wallingford Bank
& Trust Co. of Wallingford to accept a corresponding position with the new organization formed by the consolidation
of the West Haven Bank & Trust Co., West Haven, Conn.,
and the Home Bank & Trust Co. of West Haven. Mr. Reynolds has been Secretary and Treasurer of the Wallingford
Bank since 1926, prior to which time he was Chief State
Bank Examiner under John B. Byrne, former Bank Commissioner for Connecticut. He will assume his new duties
March 1. The dispatch furthermore stated that George H.
Wilkinson, heretofore Assistant Secretary and Treasurer of
the Wallingford Bank & Trust Co., and connected with the
institution since its incorporation in 1916, has been appointed
Secretary and Treasurer to succeed Mr. Reynolds.
On Feb. 18 the New York St- ate Banking Department gave
its approval to an agreement for the merger of the American
Safe Deposit Co., Bank of Long Island Safe Deposit Co.,
Bank of Washington Heights Safe Deposit Co., Bronx
Borough Bank Safe Deposit Co., Central National Safe
Deposit Co., First National Safe Deposit Co. of Brooiklyn
and Metropolis Safe Deposit Co., into the Bank of ManThe Merchants' Bank & T- rust Co. of South Norwalk,
hattan Safe Deposit Co., under the title "Bank of Man- Conn., a new bank organized to replace the Central Fairfield
hattan Safe Deposit Co."
Trust Co. of South Norwalk, which was closed Dec. 1 1930
by order of the State Commissioner of Banking, was opened
The 'New York State Ban- king Department announces for business on Feb. 20. The Hartford "Courant" of Feb.
that it revoked on Feb. 20 1931 the authorization certificate 17 named the officers of the new institution as follows:
issued under date of Oct. 1 1914, authorizing Jacob Gimbel, President,Probate Judge Henry W.Gregory; Vice-President,
Daniel Gimbel, Isaac Gimbel, Charles Gimbel, Ellis A. Dr. William J. Tracey; Second Vice-President, Robert G.
Gimbel and Louis S. Gimbel, to engage in business as Wilson and Secretary and Treasurer, William P. Clark.
private bankers, under the firm name "Gimbel Brothers, The closing of the Central Fairfield Trust Co. was
noted in
Bankers, New York," at Broadway,cor. 33d St., New York. our issue of Dec.6 last, page 3653.
Allerton Wright Kilborne who retired from the New York
Stock Exchange in 1919, died on Feb. 21. He was 81 years
Further referring to the a- ffairs of the Bankers' Trust
Co. of Philadelphia, which was closed by its directors on
1540
FINANCIAL CHRONICLE
Dec. 22 last, the Philadelphia "Ledger" of Feb. 20 stated
that committees representing depositors and stockholders of
the institution are confident the bank can be reopened,
according to a statement issued the previous day, Feb. 19,
by Harry Shapiro (attorney for the depositors' committee),
following a meeting of members of the two committees.
Another meeting, the paper mentioned said, would be held
March 2. Mr. Shapiro's statement, as given in the "Ledger,"
follows:
"The meeting was attended by the members of the general committees
of depositors and stockholders and also at their invitation by Albert M.
Greenfield and officers of the bank. The committees were informed of
active studies and preparations made during the last month by officers
and directors of the bank toward the completion of a definite plan proposed by Mr. Greenfield for the resumption of business and payment of
deposits. The committees were satisfied from the progress that has been
made by the officers of the bank that they will be able shortly to submit to depositors and stockholders a proposition which can be recomcan be
tended for adoption. They are now confident that the institution
reopened."
[Vol.. 182.
of the new bank includes Eugene V. R. Thayer, Chairman
of the executive committee of the Central Trust Co. of
•
Illinois, Chicago.
On Feb. 24 the Chatfield Trust & Savings Bank of Chicago
acquired the Harbor State Bank of that city, according to
the Chicago "Journal of Commerce" of Feb. 25, which con-,
tinning said:
The assets of the latter institution were moved yesterday afternoon
(Feb. 24) to the Chatfield's new home, which was opened just ten days
ago. Arthur W. Tobias, President of the Woodlawn Trust & Savings Bank,
is President of the Chatfield Trust & Savings Bank.
From the Michigan "Investor" of Feb. 21, it is learned
that the Fenton State Savings Bank of Fenton, Mich.,
and the Commercial Savings Bank of the same place, have
consolidated under the name of Fenton State Savings Bank
with capital of $110,000. Officers of the new institution are:
President, Floyd A. Chapin; First Vice-President, Dennis
The closing of the Bankers' Trust Co. was reported in Kelleher, and Second Vice-President and Cashier, Fred H.
the "Chronicle" of Dec. 27, page 4158, and its affairs re- Hitchcock.
ferred to in our issue of Jan. 10, page 230.
Following a meeting of the directors of the Canal Bank &
Bank,
g
Wilkinsbur
the
of
President
Finley,
L.
Trust Co. of New Orleans, La., on Feb. 19, announcement
Robert
Wilkinsburg, Pa., died at his home in that city on Feb. 17. was made by executives of the institution that Oliver G.
the Chase National
Mr. Finley was born at New Salem, Pa., and was educated Lucas, formerly a Vice-President of
in the schools of Fayette County and at Streator, Ill. After Bank of the City of New York, had been appointed President
former,
leaving school he was employed for a while by Armour & of the institution; that George Champion, also a
a
had
been
named
Bank,
Sons,
National
&
Mellon
T.
of
Chase
of
the
officer
Bros., and then entered the employ
Lucas, Clarkson Potter of
later the Mellon National Bank, Pittsburg. He was ap- Vice-President, and that Mr.
E. Carleton Cranvery of Harris
pointed Cashier of the Wilkinsburg Bank in 1901 and Hayden, Stone & Co., and
made directors to fill vacancies on
shortly thereafter was made President, the position he held Forbes & Co. had been
the Board, according to the New Orleans "Times-Picayune"
at the time of his death.
of Feb. 20. It was also announced that changes in the capThe appointment of Dr. Stuart Cassard as President of italization of the bank are to be effected whereby additional
an amount exceeding $3,the Towson National Bank, Towson, Md., was announced shares will be underwritten in
Hayden,Stone & Co., Mr.
by
headed
Dr.
17.
syndicate
000,000 by a
on Feb. 16, according to the Baltimore "Sun" of Feb.
President of the Canal Bank
Butler,
P.
J.
diLucas
and
a
succeeds
resident
Vice-P
was
a
heretofore
who
Cassard,
past ten years, whose resignation was
rector of the institution, succeeds W. Clarence Craumer, & Trust Co. for the
at the same meeting. Mr. Butler
directors
the
by
accepted
of
failing
because
President
as
resignation
his
who tendered
from the bank's affairs was
retirement
his
in
confirming
with
health. Mr. Craumer, it was said, had been connected
as saying:
mentioned
paper
quoted in the
the Towson National Bank for 40 years, having served as
the foregoing announcement. I bespeak for my successor
to
Referring
Cashier for 28 years and as President since 1921.
bank the continued co-operation and good-will of the
and for
the Canal
stockholders, depositors and friends of that institution.
Announcement was made on Feb. 21 by C.'Sterling Smith,
The statement issued by executives of the bank said in
President of the Standard Trust Bank of Cleveland, Ohio, part:
the Chase NaMr Lucas, prior to his election, was a Vice-President of
of the appointment of J. L. Clarke, heretofore associated
prior to his association
bank of New York, and for a number of years
Bank of St.
with the California Bank of Los Angeles, as a Vice-President tional
First
National
the
with the Chase bank was a Vice-President of
and Executive Officer of the Standard Trust Bank, accord- Louis. Mr. Lucas is particularly familiar with the South, its economic
with which he has been in close contact for some
ing to the Cleveland "Plain Dealer" of Feb. 22. Mr. Clarke and banking requirements
years past. . . . .
paper
The
once.
at
mentioned
duties
changes in the
new
was to assume his
It was determined to submit to the shareholders certain
The
capitalization of the bank, details of which will be announced later.
went on to say:
the
Mr. Clarke has had 30 years of commercial and branch banking experience, spending 22 years with the Bank of Montreal, Canada, one of the
largest banks in the world, where he held a senior executive position.
While with the Bank of Montreal he became acquainted with Stirling
Smith and a long friendship resulted. For the past eight years Mr. Clarke
has been associated with the California Bank's executive department. For
some time he has been identified with American Institute of Banking
work and holds diplomas from most of its senior courses.
At the Standard Trust Bank he will have supervision of branch offices
at
and will serve on the officers, finance, trust and investment committees
the main office.
"Mr. Clarke's wide experience and exceptional knowledge of branch banking will be of great value to the Standard Trust Bank," President Smitji
for some
stated. "We have been desirous of his joining our organization
for him to move
time, but only recently did circumstances make it possible
his residence from the West Coast."
Absorption of the Prairie Depot National Bank of Wayne,
Ohio, by the Union National Bank of Fostoria, Ohio, has
been approved by the Comptroller of the Currency John W.
Pole, according to a dispatch from Washington, D. C., on
Feb. 20, printed in the Toledo "Blade" of the same date.
The acquired bank was capitalized at $25,000. D. C. Knisel
and J. L. Newson, trustees of the Fostoria bank, are the
liquidating agents, the dispatch said.
From the Chicago "Journal of Commerce" of Feb. 24, it is
learned that effective that day the Broadway National Bank
and the Devon Trust & Savings Bank, both of Chicago, were
consolidated under the title of the latter. The new organization occupies the enlarged quarters of the Devon Trust &
Savings Bank at Clark Street and Devon Avenue. J. M.
Appel, formerly President of the Broadway National Bank,
is Chairman of the Board of the enlarged bank, while B. L.
Rosset, formerly President of the Devon Trust & Savings
tank, continues In that capacity. The advisory committee
Increase in the number of shares in the capital stock recommended in
plan is to be underwritten in an amount exceeding $3,000,000 by a syndicate
headed by Hayden. Stone & Co., and the new shares are to be offered to the
stockholders at $25 per share.
Mr. A. D. Geoghegan will continue to be Chairman of the Board of
Directors of the Canal Bank & Trust Co.
In conclusion the "Times-Picayune" said:
While details of the proposed readjustment of the bank's financial
structure have not been made public, it is understood that the issuance
of 135.000 additional shares of common stock is contemplated. This stock
will have a par value of $15 per share, a book value of approximately $22
per share and will be offered to present stockholders at $25 per share, on the
basis of one share of new stock for two shares of present stock.
With this additional stock offering there will be 405.000 shares ofcommon
stock of the Canal bank building. The readjustment of the capital structure
Is expected to strengthen further the bank's position.
The Canal bank, one of the largest in the South, has figured frequently
in gossip connecting it with outside institutions, because of its localtion
In the South's largest city, and the nation's second port. It was reported
at one time that the Giannini banks on the West coast would acquire an
interest in the institution. Subsequently it developed that the Chase
National Bank had purchased a block ofstock.
Since then it has been considered only a matter of time until the Chase
Bank would take an active hand in its affairs. Mr. Lucas, the now Presi
with
dent, is said to have been in the city some three weeks ago conferring
take up
local financiers. He is expected to arrive here next (this) week to
his new duties.
the
The following new appointments in the personnel of
(head
of
Bank
Montreal
the
by
Institution, was announced
the Montreal
office Montreal) on Feb. 19, according to
of the St.
Merrett,
E.
Manager
T.
date:
"Gazette" of that
has
Peter and St. James Streets branch of the institution
Montreal
t
of
main
the
Managemen
the
been appointed to
goes
branch of the bank; F. G. Woods, whom he succeeds,
there,
subsidiary
the
of
Bank's
President
as
to San Francisco
Nesbitt,
the Bank of Montreal (San Francisco) ; and H. W.
branch,
James'
Peter
St.
and
St.
the
at
Manager
Assistant
becomes Manager of that branch, in lieu of Mr. Merrett
FEB. 2S 19311
NEW YORK
BROOKLYN
CHICAGO
BOSTON
FINANCIAL CHRONICLE
Trust Company Returns
1541
PHILADELPHIA
BALTIMORE
AND
ST. LOUIS
We furnish below complete comparative statements of the condition of all the trust companies in New
York, Brooklyn, Boston, Philadelphia, Baltimore and St. Louis, and some of the companies in Chicago.
This is in continuation of a practice begun twenty-nine years ago, the compilation having been enlarged
fourteen years ago by the addition of Baltimore's institutions, and in 1921 being further enlarged by the inclusion of the Chicago companies. The statements occupy altogether nineteen pages.
The dates selected for comparison are December 31 1930, December 31 1929 and December 31 1928.
In the case of the Boston, the Philadelphia, the Baltimore, the Chicago and the St. Louis companies, we
have sought to get figures for these dates and have largely succeeded. As, however, returns for these dates
are not required in all the States, a few of the companies have not found it convenient to compile statistics for December 31, but have furnished instead the latest complete figures available.
In the matter of the New York companies we take the returns under the call of condition nearest the
close of the year. Formerly it was the practice of the State Banking Department to require the trust
companies to render a statement of their condition, showing resources and liabilities for the last day of
December, and also to furnish certain supplementary statistics for the twelve months of the calendar year.
In Dec. 1911 this practice was abandoned, and some years thereafter it became the custom to select Nov. 15
as the date. In 1928, 1929 and 1930,however, the Superintendent again returned to the old practice and once
more made the date Dec. 31. Beginning with 1911, too, the Banking Department has waived entirely the
requirement as to the supplementary items of information. As these supplementary statistics, dealing with
earnings, expenses, dividends, &c., constituted a most valuable feature of the annual returns and the record
extended back a quarter of a century or more, we have not felt satisfied to let the record be broken. Accordingly we have made direct application to the companies in each instance and in not
a few of the cases we
have been successful in obtaining the supplementary statistics, though the number of companies supplying
such data has been greatly reduced as compared with the original number.
NEW YORK COMPANIES
*American Express Bank & Trust Co. (New York).
Banca Commerciale Italiana Trust Co. (New York)
Resources—
Dec.31 1930. I
Resources—
Dec. 31 '31. Dec. 31 '29. Dec. 31 '28.
Specie
411,760
$2,340 Specie
$7.421
510,115
0ther currency authorized by laws of United States
196,298
1,527.974 Other currency auth. by laws of U. S_
117.236
104,875
Cash
depositaries
items
D ue from approved reserve
1.180.125 2,313.070
6,657.296
Due from other banks, trust companies and bankers
2,267,598 3,061.979
170.343 Due from approved res've depositaries 1,775,054
Stock and bond investments
3,285,953 6,793,633 4.278,849
11.878,353 Due from other banks and trust cos
Lock and bond investments
Loans and discounts secured by collateral
16,341,174
7,014.819
7.575,270
7,483.547
Loans, discounts and bills purchased, not secured by collateral 3.959,909 Loam & discts, sec, by bond & mtge.
238.100
188,100
125,000
Own acceptances purchased
31,138 Loans & discts. sec. by other collateral 3,674,431
8.062.399 6,085.644
Bonds and mortgages owned
1,681.935
9,700 Loans,disc. & bills pur, not sec.by coil 1,351,654
2,301.295
Customers' liability on acceptances
3,201
6.468.360 Overdrafts
1,205
253
Customers' liability on bills purchased
3,349,043 Bonds and mortgages owned
111.500
Other assets
157,000
140.494 Real estate
117.000
434,564
Customers' liability on acceptances
458,711
1,298,838
1,597.857
Total
$50,536,124 Customers'liability on bills purchased
79,739
Other assets
274,814
2,148,347
268,250
Liabilities—
Total
$20.651,174 133,141.431 $24,344,834
Capital
Liabilities—
$10,000,000 Capital
Surplus including all undivided profits
$2,000,000 $2,000,000 52.000.000
5,400.560
Reserves for taxes expenses contingencies &c
2,101,303
823,418 Surplus and undivided profits
2,341.025
2,110.882
Reserves for taxes exp.. coming., &c.
Deposits (preferred)—
508.785
Demand
4,005,919 Preferred deposits, demand
328,640
268,980
2,451.422
Time
Deposits,
not
preferred, demand
25.000
4,433,0011 24,263.782 15.744.807
Deposits (not preferred)—
Deposits, not preferred, time
8.959,784)
Demand
15.204.747 Due to trust cos., banks & bankers
1.737.093
758,405
179.886
Time
Bills
purchased
1.648,924
79.739
Due to trust companies banks and bankers
3,476,679 Acceptances
473,772
1,492.703
1.766.874
Acceptances of drafts authorized by comm'i letters of credit.... 6.568.360 Other liabilities
29.057
2.016,536
190,963
Bills purchased sold with endorsement
3,349,043
Total
$20,651,174 $33,141,431 $243448.34
Other liabilities
33,411 Amt.of dep.on which int.is being paid$14,193,203 $21,871,344 $15,191,026
Supplementary—For Cal. Years—
Total
1929.
1928.
1930.
$50.5.36324 Total
int. & comm. rec. during year $1,344,371 $1,058,136
Amount of deposits on which interest is paid
$948,912
$21.189,400 All other
profits rec. during year..,..
517.741
___
556.614
419.028
Charged to undivided profit-g Began business April 15 1930.
On account of depreciation
12.085
29,140
On account of other losses
70.189
On account of reserve
91,432
419.911
Int. credited to depos. during year
487.685
420,774
777.143
Expenses during year, exeud'g taxes
505.033
400.591
576.926
Anglo-South American Trust Co.(New York).
Amt, of divs. declared on cap. stock_
200,000
200,000
200,000
Amt. deposits on which int, is paid
14,193,204 21.871,344 16.392,980
Taxes paid auring year
Resources—
Dec. 31 '30. Dec. 31 '29. Dec. 31 '28
88,372
67.701
110.457
Specie
$111,775
$185,170
$404.620
Other, curr. author, by laws of U.S
22.334
30.425
*Banco di Napoli Trust Co.(New York).
40.575
'Cash Items
13.946
38,346
rICSOUITCS*Dec. 31 1930.
approved
Due from
res. depositaries_
666.460
889.366
Specie
892,863
$1,899
Due from other banks and trust co's_ 2.608,106
5,662,032
2.028.057 Other currency authorized by laws of United States
155,628
Stock and bond investments
2.762.701
2,929,100
3.448,618
Cash
items
117.646
Loses & disct. secured by collateral
2,124.361
4,320,329 6,528.607 Due from approved reserve depositaries
346,529
Loans, discounts and bills purchased
Due from other banks trust companies and bankers
769,285
not secured by collateral
960.931
1.794.683
680,653 Stock and bond investments
8,109.058
71.708
Own acceptances purchased
134,051
Loans
188.874
and discounts secured by bond and mortgage or other
Overdrafts
936
158
1,320
real estate collateral
49,000
Customers' liability on acceptances_
897.944
2,025,071
2,012,526 Loans and discounts secured by other collateral
101,355
Customers liab. on bills purchased_ —
420,765
Loans, discounts and bills purchased, not secured by collateral
218,731
assets
233,941
Other
336.484
909.953 Own acceptances purchased
21.636
Customers' liability on acceptanceS
303,234
510,881,962 518,320,815 517,175,012 Customers'
Total
liability on bills purchased and sold
714.042
Other assets
241.083
Liabilities—
Total
$11,149,126
$1,000,000 $1,000,000 51.000.000
Capital
Lia bilittes—
756,984
805,493
Surplus and undivided profits
790.566 Capital$1,000,000
25,349
Reserve for taxes, expenses,&c
Surplus including all undivided profits
700.000
153,546
Preferred deposits, demand
177,417
294.381 Reserve for taxes, expenses, contingencies, &c
37.042
preferred,
3.699,4051
demand
not
Deposits,
11,244.342 12.189,431 Deposits, not preferred, demand
611,475
2,186.825f
Deposits, not preferred, time
Deposits
not
preferred, time
5,274.779
427.820
1.081,942
Due to trustees.. banks & bankers
143,896 Due to trust companies, banks and bankers
2,358,365
436.707
65,633
Bills payable
111,204 Bills payable
148.870
420,765
Bills purchased
Acceptances
303,234
1.019,553
Acceptances
2.329,977
2.255.426 131ils Purchased
714.042
755,008
1,616,011
Other liabilities
390.108 Other liabilities
1,319
Total------------------------------------510.881.962 518,320,815 $17,175,012
Total
$11,149,126
of deposits on which interest is paid
$7.983.863
Amt. of dep. on which int. is paid__ _ $5,540,952 $10.844,200 $11.818.650 Amount
• Began business May 24 1930.
FINANCIAL CHRONICLE
1542
Bank of Athens Trust Co. (New York).
Dec. 31 '30. Dec. 31'29. Dec. 31 '28.
897.016
$45,151
$252,950
Specie
19.834
25,013
25,335
Other currency auth. by laws of U. S..
43.720
47.103
207,856
Cash items
25,375
Due from Fed. Reserve Bank of N.Y..
251.475
338.202
754,703
Due from approved res. depositaries_
612.811
390.629
416,347
Due fr, other bits., tr. cos. & bankers1.838.579
4,868,256 2,777.029
Stock and bond investments
2,604.866 2,274.631
931,271
Loans and discounted by collateral
353.454
465.995
403,344
L'ns, disct. & bills pur. not sec. by coil
7.562
40,802
27,778
Own acceptances purchased
147
109
152
Overdrafts
258.860
60.343
34,558
Customers liability on acceptance...
46.017
73,046
83,927
Other assets
88,031,852 $6,868,288 $5.804.106
Total
Liabilities$500.000
8500.000
$500,000
Capital
530.161
555.662
557,089
Surplus including undivided profits
22.916
Reserves for taxes, expenses, &c
115.100
Preferred deposits, demand
Deposits, not preferred, demand.._ 1,151.8061 5,030,966 4,038,951
5,209,0971
Deposits, not preferred,time
459,704
670,838
417,918
Due trust cos., banks and bankers.-258.860
60.343
34,558
Acceptances
16,430
50.479
23,368
Other liabilities
85.804.106
$6,868.288
$8,031,852
Total
Amount deposits on which int, is paid 36,272,740 85,126,853 4.189.039
ReSOIIITZS-
Bank of Europe Trust Co.
Dec. 31 '30. Dec. 31 '29. Dec. 31 '28.
ROM:US-.
$34.179
$40,635
$151,580
Specie
177,764
124,039.
of
U.S.
laws
by
antis,
Other currency
417
2.364
3,431
Cash items
902.639
930,619
725,889
Y
N.
of
Bank
ve
Res
Fed.
from
Due
214,850
61.301
76,188
depositaries.
Due from approved res.
--- 8,582,212 7,404.414 8.207,747
Stock and bond investments _____
Loans & disc. sec. by bond & mtge.
239.997
220.000
189,612
or other r. e.col
Loans & disc.sec. by other collateral.- 1,890,124 3,042,621 3,293.526
not
purchased
bills
&
Loans. disc.
1,415,150 1,913,376 2.219.285
secured by cell
742
302
117
Overdrafts
3,321,746
3,5131.379 3,511.643
owned
Bonds and mortgages
290.000
363,950
1.334,366
Real estate
2.921
Customers liability on acceptances
181.072
174,189
178.856
Other assets
817,996.231 $17,838,123 819.273.861
Total
'Liabilities31.000,000 $1.000.000 $1,000,000
Capital
834.579
8924,616
819.649
Surplus, including undivided profits_
100,000
Reserves for taxes, expenses, &cc
205
385
29.851
Preferred deposits, demand
1,816,8161 15,444,185 16,844,128
Deposits, not preferred,demand
11,833,589J ,
Deposits, not preferred,time
46.847
28,638
50,738
Due to trust cos., banks and bankers_
1,400.000
Bills payable
380,000
300,000
Rediscounts
2,921
Acceptances
168.102
140,299
942,667
Other liabilities
$17,996,231 817,838323 $19,273.861
Total
Amt.of dep.on which int.is being paid 811,600,000 814,000,000 814,500,000
1929.
1930.
Supplementary-For Calendar Year8963.689
$40,810
Total interest & commissions received during year
198,591
78,374
year
received
during
All other profits
Charged to profit and loss18.951
4.860
On account of depreciation
51.345
10.500
On account of other losses
564.752
495.534
year
Interest credited to depositors during
238.108
225,203
Expenses during year, excluding taxes
160.000
160.000
Amount of dividends declared on capital stock.-12,500.000 14.000.000
Amount deposits on which interest is paid
34.780
31.993
Taxes paid during year
*Bank of Manhattan Trust Co.(New York.)
*Dec. 31 '30.
Resources842.560
Specie
7,723.259
Other currency authorized by laws of U.S
135.335.026
Cash items
41,465,104
Due from Federal Reserve Bank of N. Y
2,990,918
Due from other banks, trust cos. and bankers
72,887 321
investments
bond
and
Stock
Loans & discts. secured by bond & mtge. or other
11,000,278
real estate collateral
96,928,280
Loans & discts. secured by other collateral
Loans,discts. & bills perch. not sec, by collateral...140,869.094
34,010
Overdrafts
20,722.677
Bonds and mortgages owned
17.204.969
Real estate
3,238.907
Customers'liability on acceptances
2,814,235
Customers' liability on bills purchased
1,677,294
assets
Other
Dec. 31 '29.
3186.925
5,426,954
158,919,720
34.229,965
4,547.084
41873 685
13.266.470
111,306.318
126,808,593
52.955
25,050,081
13.516,657
9,041,706
1,327.697
[vol.. 132.
Bank of New York & Trust Co.(New York) Concluded.
'28.
Dec. 31 '30. Dec. 31 '29. Dec. 31
Liabilities36,000.000 86,000,000 86,000.000
Capital
14,178,219 14,297,316 13,324.369
Surplus and undivided profits
431,100
&c
Reserves for taxes, expenses,
4.086.039 8,081.914 7.986,423
Preferred deposits, demand
8,270,622
Preferred deposits, time
74.720,0951 98.507,740 136,394.090
Deposits not preferred, demand
5.761.247
Deposits, not preferred,time
20,363,955 16,858,444
Due trust cos., banks and bankers.-- 10.624.369
4,300,000
3,000.000
Bills payable
7.669,372 10.660,986 9,809,012
Acceptances
1.263,002
Bills purchased
1,252,645 3,692,524 3,741,034
Other liabilities
$161,604,435$198,413,372
$137,256,710
Total
862,799.800
Amt.of dep.on which int, is paid....-$66.500,000 373.576,900
Bank of Sicily Trust Co. (New York).
Dec. 31'30. Dec. 31'29. Dec. 31'28.
Resources88,822
$10,358
$14,418
Specie
155,774
202,703
332,748
S._
U.
Other curr. author, by laws of
922,448
1,343,668 2.703,827
Cash items
64,232
425,148
Due from approved res ve depositaries 1,354,467
434,582 1,812,792
Due fr, other banks, tr. cos. & bankers 1.8.35,272 6,117,184
4,022,980
4,426,505
Stock and bond investments
Loans & disc, secured by bond and
616,640
632,315
618.999
mortgage or other collateral
3,426,057 5,879,000
Loans & disc, secured by other coil_ 1,926,180
Loans, discounts and bills purchased 2,529,326 3,175.063 2,900.033
not secured by collateral
22,997
119.661
106,403
Overdrafts
52,542
191,838
61,224
Own acceptances Purchased
35,117
169.713
184,454
Real estate
400,716
806,258
146,000
acceptances_
Customers' liability on
222,718
206,136
206,084
Other assets
818,620,843 817,116,811
$15.084,748
Total
Liabilities$1,500.000 81,500,000
Capital
1,000,000 2,000,000
Surplus and undivided profits
513,482
&c
expenses,
Reserves for taxes,
12,074
57,7281
Preferred deposits, demand
6.884{
Preferred deposits, time
12,945,148
2,781,481
demand.-Deposits, not preferred,
7,337,238
Deposits, not preferred, time
1,112,636
Due to trust cos., banks & bankers._ 1,612.279
809,504
146,200
Acceptances
241.481
129,456
Other liabilities
818,620.843
$15,084,748
Total
A.deposits on which int. Is paid-810,881,750 $11,226.948
81,100,000
1,090,000
9,247
11,805,810
2,471.262
400.716
230,776
817,116,811
$13,568,887
Bankers Trust Co. (New York).
Dec. 31'30. Dec. 31 '29. Dec. 31'28.
Resources$79,938,272 $131765,186 $100494,324
Stock and bond investments
12,035.482 8,465,775 8,359,370
Real estate
887,700
647,050
4,172,146
Bonds and mortgages owned
or
Loans on bond and mortgage
115,000
100.000
other real estate collateral
340.842,721 339,026,593
Loans & disc. sec, by other collateral_345.712,738
Loans, discounts and bills purchased143.043.386 120,136,587 93,581,902
not secured by collateral
56,630
580.178
3,385,049
Own acceptances purchased
34.330.
66,554
17,473
Overdrafts
5,070,734 21,186.217
19,350,671
bankers
&
banks
cos.,
Due from trust
103,045
84.050
54.633
Specie
999,585
669,065
1,167.055
Other currency auth. by laws of U.8_ 98,360.670 103,947,607 121.073,122
Cash items
46,206.967 57.321,284 46,244,624
Due from the Fed. Res. Bank of N.Y.
42,039,326 34.282,221
Customers' liability on acceptances_ 37,027,451
56,599,842
Customers' liability on bills purch
1,785,455 6,340,766 6,834,203
Other assets
0 8817976,883 8773268,866
8848,967,29
Total
Liabilities
$25,000,000 $25,000,000 825,000,000
Capital stock
86,887,330 82,631,387 77,387,182
Surplus fund and undivided profits
2,361,206
&c.
conting.,
exp.,
Reserve for taxes,
31,096,093 69,758.720
43,057.121
Preferred deposits, demand
9,450.551
time
deposits,
Preferred
429,762,354
502,439,628
400,892,133
demand
Deposits, not preferred,
50,995,767
Deposits, not preferred, time
86,121,354
74,558,284
6
-134,070,50
bankers
and
banks
Due trust cos.,
56,599.842 55,025,000 47,500,000
Bills payable
34,949,216
43,200,140
38,486,961
Acceptances
2,790,040
1.165,873 4,026,351
Other liabilities
8773268,866
8817976,883
0
$848,967,29
Total
3450256,741
Amt.deposits on which Mt.is paid-4537.100.171 $480269,689
1928.
1929.
1930.
Net profits for year before dividends311,755,943 $12,744.205 $10,149,162
6,750,000
7,500.000
Dividends paid during year
3554.933,932E545,554,910
822.250.000 827,250,000
54,439,888 49,411,889
762,694
37.931,9421 22,395.483
*Bronx County Trust Co. (New York).
2.853,106
309,066.794 t368,198,337
Dec. 31 '29.*Dec.31 '29. Dec. 31 '28.
Resources
48,682.696
$71,078
8119.286
$89,960
70,559.197 65,498,482 Specie
839,300694,791
811.984
3.239.329 9,149,915 Other curr. authoriz. by law of U. 8._ 1,249,085
842,905 2,065,640
Cash
items
2.814,235
817,143
depositaries.. 1,678,966 1,516,221
2,334,051 3,650,804 Due from approved res.cos.&
6,646
bankers
Due fr, other banks, tr.
6,561.922
5,948.626
7,946,883
and bond investments
S554,933,9328545,554:910 Stock
Total
?) 217.585,744 Loans & disc, sec, by bonds & mtges. 2,096,393 2,542,150 2,077,117
Amount of deposits on which int. is paid
or other real estate collateral
as
the
Company
Manhattan
or
3.118,825 4,701.834 4,349,447
Co.,
Manhattan
Loans and disc. sec, by other coll..
* The old Bank of the
in Nov. 1929 became primarily a holding Loans, disc. ,Sc bills purch., not sec. by
name reads on the stock certificate,
of
the
Bank
by
6.525,845 7.930,144 6.121,558
Manhattan
continued
being
business
collateral
company, all banking
359
2,268
5,415
The stock of the latter is all owned Overdrafts
Trust Co. organized for this purpose.
2,231,182 3,059,946 3,160,197
merged into Bank of Man- Bonds and mortgages owned
by the Manhattan Co. American TrustisCo.
365.748
448,598
680.169
both
of
results
insticombined
Above
Real estate
hattan Trust Co. in Nov. 1930.
1,800
424,248
4,410
Customers' liability on acceptances
tutions for both periods.
335,122
414.974
Other assets
(New
York).
Co.
Trust
&
Bank of New York
$26.854.091 828,382,172 $26,621,922
Total
Dec. 31 '30. Dec. 31 '29. Dec.31 '28.
Resources827.144
816.021
$41.924
Specie
844,117
Liabilities659.827
686,826
$1,550,000 $1,550,000 81,250,000
Other currency auth. by laws of U.S.. 24,527,176
45,493.897 79.888.867 Capital stock
1,059,254
1,202,772 1,188.689
Cash items
7,153.724 Surplus fund and undivided profits
481.017
Due fr. Fed. Reserve Bank of N. Y.__ 8,817.613 6.793,917
exp., &c
taxes,
for
Reserves
8,319.688
2,051,484
7.215.782
4,236,518
bankers
2,807,900
&
3,594.310
cos.
Due fr.other banks. tr.
25,238,489 24,438,579 25,248.947 Preferred deposits, demand
661.876
Stock and bonds Investments
Preferred deposits, time
11.463.514 22,158,978 20,433,296
Loans and discounts secured by bond
976,971
610.479 Deposits not preferred, demand
384,009
7.591.564
& mtge. or other real estate collet
time
preferred,
not
Deposits
6,646
23.880
Loans & disc, secured by other collat. 31,019,722 32,097,805 35,887.006 Due to trust cos., banks & bankers
500,000
Loans, discta. & bills purchased not
1.800
21,119,499 20,851,289 21,052.380 Bills payable
4,410
secured by collateral
23,792
Acceptances
669,959 1,326,088
Own acceptances purchased
280.748
liabilities
Other
6.063
217.666
3,739
Overdrafts
4,285.046 3.994.558 3,479.388
Bonds and mortgages owned
826.854.091 328,382,172 $26.621,922
Total
8.254,878 8,243.357 7.468.821
Real estate
paid _$15,000,000 $16,275,000 $14,000.000
9,130,381 8,797.441 Amount of dep. on which int. is
6,888,582
Customers' liability on acceptances
County Trust Co. consolidated as
Customers'liability on bills purchased 1.263.002
* Fordham National Bank andforBronx
717.023
562,877
489.687
Other assets
Dec. 31 1929 are results for both comof Aug. 1 1929. Above figures
Trust Co. alone.
County
Bronx
the
for
years
8137,256,710 161.604,4358198.413,372 panies for previous
Total
Total
Liabilities
Capital
Surplus and undivided profits&c
Reserves for taxes, expenses.
Preferred deposits demand
Preferred deposits, time
demand
Deposits, not preferred,time
Deposits, not preferred,
Due to trust companies, banks and bankers
Acceptances
Bills purchased
Other liabilities
FEB. 28 1931.]
FINANCIAL CHRONICLE
*Broadway & Plaza Trust Co.(New York).
ResourcesDec. 31 '30.
1543
*City Bank Farmers Trust Co. (Concluded)
LiabilitiesDec. 31 '30. Dec. 31 '29.
Specie
$12,713
Other currency authorized by laws of United States
402,296
Cash items
408,417
Due from Federal Reserve Bank of New York
693,874
Due from other banks, trust companies and bankers
921,680
Stock and bond investments
2,058,586
Loans and discounts secured by bonds and mortgages or other
real estate collateral
73,000
Loans and discounts secured by other collateral
2,114,560
Loans, discounts and bills purchased, not secured by collateral 3,742.611
Overdrafts
2,488
Customers liability on acceptances
174,254
Other assets
170.755
Total
$10,775,232
Capital
Surplus and undivided profit
Reserves for taxes, expenses, &c
Preferred deposits, demand
Preferred deposits, time
Deposits, preferred, demand
Other liabilities
Capital
$1,350,000
Surplus, including undivided profits
1,966,451
Reserves for taxes, expenses. contingency, &c
26.336
Preferred deposits, demand.
691.271
Preferred deposits, time
17.879
Deposits, not preferred, demand
5.151,937
Deposits, not preferred, time
1,049,524
Due trust companies, banks and bankers
306.907
Acceptances
174,254
Other liabilities
40,673
Total
$10.775.232
Amount of deposits on which interest is being paid
$4.500,000
* Began business Sept. 29 1930 as a consolidation of the Broadway
National Bank & Trust Co.. the Plaza Trust Co.and the Park Row Tr. Co.
Resources-Dec. 31 '30.*Dec. 31 '29.
Specie
$25,923
$13,927
Other currency authorized by laws of U. S
143,444
47,437
Cash items 102,771
15.521
Due from approved reserve depositaries
136.678
80,708
Due from other banks, tr. cos. and bankers
500
889,938
Stock and bond investments
739,097
Loans and discount secured by other collateral___
699,855
700,700
Loans and discounts secured by bond and mortgage
46,150
or other real estate collateral
413.774
850
Loans, discts. & bills purch. not secured by collet
74
Overdrafts
74,000
Bonds and mortgages owned
19,852
23.949
Other assets
Liabilities-
*Central Hanover Bank ar Trust Co.(New York).
*Dec.31 '30. Dec.31 '29. Dec. 31 '28.
Resources-
$177,580.212$118,975,691 $46,996,408
Stock and bond investments
12,157.875 12,157,875 3,295.000
Real estate
4,916,179 4,226,525 4,720,956
Bonds and mortgages owned
657,841 4,913,180
Loans on bond or mtg.or oth. r. e. coll 6,057,521
Loans & disc. sec. by other collateral 259,554,343 176,794,519 149,324,576
Loans,disc.& bills pur.not sec.by col-106,335,594 171,448,737 77,424,389
76.690
70,507
Overdrafts
25,035
Due from the Fed. Res. Bank of N.Y. 63,435,002 41,939,202 51,854,218
1,479.293 5,133,440
Duefrom approved res've depositaries 2,278.177
Due from other bks.,tr. cos. at b'kers. 22,124,341 19,370,169 10,803.636
405,328
300.587 ,
Specie
65.273
Other currency auth. by laws of U. El_ 2,123.650 2.394,002
797,320
114,178.050 156,761,048
Cash items
Customers' liability on acceptances- - 60,867,394 59.790,468 44,950.686
Customers liability on bills purch
23,177.647
3,043,853 2.886,493 2.680,424
Other assets
Total
$858,305,6733769,258,9403402,084441
$10,000,000 $10,000,000
12.894,776 12,167.651
2,547,939
19,919,471 138.941,773
15,171.258 f
14,125.627 11,461.743
92,309 2.007,032
Total
174,751,380 $74,578,199
Tot.amt.of deposits on which int, is being paid---$34.102,533 $39,080,019
* Organized June 28 1929 to take over the trust business of the National
City Bank and the Farmers' Loan & Trust Co.
*Clinton Trust Co., New York.
Total
Liabilities-
Capital
Surplus and undivided profits
Preferred deposits, demand
Deposits not preferred, demand
Deposits not preferred, time
Other liabilities
a
$2.552,959 $1,622.189
$500,000
510,495
50.969
1,271.9861
213.8551
5.654
$500,000
506,083
604,491
11.615
Total
$2,552,959 $1,622.189
267,571
Totaa amount of deposits on which int,is being paid $1,074.989
*Began business Dec. 19 1929.
*Continental Bank & Trust Co.(New York).
ResourcesDec. 31 '30. *Dec.31'29.
$29.427
Specie
$5.236
Other currency authorized under laws of U. S
208.888
242.779
Cash items
14.220.037 17,704.394
Due from Federal Reserve Bank of N. Y
1,782,394 2.279,616
Due from other bks., trust. cos. and bankers_
756,519
750.792
Liabilities9.812,054 2,942,518
Capital stock
$21,000,000 $21.000,000 $12,500,000 Stock and bond investments
21,642.990
Loans
and
by
collateral
17,200,695
discounts
secured
Surplus fund and undivided profits
87,278,208 84.117.707 42,662,371
Leans, discus. & bills pur. not secured by collateral 1,437,193 1,425,221
Preferred deposits447
670
3.097.003 3.840.935 Overdrafts
Due N. Y. State savings banks29,005
29.896
39.219.003 9,408,736 Real estate
Due as executor, administrator. &c.
50.000
1,000,000
400,000 Customer liability on acceptances
Deposits by New York State
690,211
161,438
479,158 2,593.272 Other assets
Other dep. sec. by pledge of assets..
Total
1,137,029
$45,609,293 $47,793,127
Reserve for taxes, exp.,&c
9,512,6961 43,795.164 16,242,943
Preferred deposits, demand
Liabilities36,497,323
Preferred deposits, time
$6.000,000 $6,000,000
Capital
454.469,695484,621,853 255,217,303 Surplus and rndivided profits
Deposits, not pref., demand
11,353.148 11,280.275
17.122,851
Deposits, not pref., time
67,094
Reserves for expease.s, taxes, &c
Due trust cos., banks and bankers---143,176,232 89,909,378 25,937.820 Preferred de,,,,-.,,,, demand
282.682
763.6671
61,507.637 60,656,808 46.041,413 Preferred deposits, time
Acceptances
11,6331
23,177.647
Bills purchased
23.313,725c 29326,456
Deposits not preferred, demand
3,426,355 5,158,030 3.482.691 Deposits not preferred, time
Other liabilities
424,9301
62,113
389.817
S858.305,6733769.258.9405402,084,541 Due to trust companies, banks and bankers
Total
50,000
Acceptances
which
int.
paid-$586,091,104$465,563,000$267,606,510
deposits
on
Amt.
Bills payable
3,250.000
Calendar
Years1929.
1928.
1930.
Supplementary-For
691,601
35.279
Other liabilities
Total int. & com'sions rec. during year$26,877,054 $30,450,576 $19,808,470
$45,609.293 $47,793.127
Total
5,178,584
Int. credited to depositors during year 6,826,162 7,704,298
3.802,760
4,640.000
Total
being
paid
int.
is
amount
deposits
on
which
of
Expenses during year, incl. taxes__-- 10,231,000 10,096,278 5,166,061
Amt.of dive. declared on cap. stock-- 7,353,000 7,175,000 4,500.000
* Formerly Continental Bank,changed to a trust company Nov. 11 1929.
Amt.deposits on which int. is paid---520,078,000 464,520.000 261,606,510
* Hanover National Bank and Central Union Trust Co. consolidated as
of May 14 1929. Above statement for Dec. 31 1929 and 1930 is for consolidated institution. For 1928 for Central Union Trust Co. alone.
*Chemical Bank & Trust Co.(New York).
Dec.31 '30. *Dec.31'29.
Resources-
$186.184
$165,215
Specie
Other currency authorized by laws of U.S
2,460.149 2.532.717
Cash items
60,377.949 79,405,512
Duefrom Federal Reserve Bank of New York
52,281.042 50,829,270
Due from other banks, trust companies & bankers- 5.238,074
1,890,373
Stock and bond investments
63,189,720 25,801.140
Loans & discs.sec. by bd. & mtge. or 0th. rl.est. roll 1,407.000
713.400
Loans and discounts secured by other collateral_ _ _143,990,260 127,205,529
Loans, discount & bills purch, not sec. by coil
91,012,574
270.596
Own acceptances purchased
1,046,354 2,176,537
Overdrafts
153,694
555,576
Bonds and mortgages owned
3,359,430 5,266,743
2,340,316 2.263.615
Real estate
Customers liability on acceptances
35,606.096 30,253,718
Customers liability on bills purchased
12,768,510
3,238.973 3.671,063
Other assets
Total
$478,635,356 5423172.081
Liabilities-
$21.000,000 $15,000,000
Capital
Surplus and undivided profits
43,425.968 22,017,677
2,395,508
Reserve for taxes, expenses, &c
16,127,831 19,113,638
Preferred deposits, demand
4.634.275
Preferred deposits, time
Deposits not preferred, demand
257.767.872120,009,6o8
24,606.2681
Deposits not preferred, time
54,114,443 68,348,627
Due trust companies, banks and bankers
36,665.505 31,494,796
Acceptances
12,768,510
Bills purchased
5,129,176 17,187,737
Other liabilities
$478,635.356 5423172,081
Total
being
paid_
_$212,694,712
Tot. amt. of deposits on which int. is
$212846.948
*Corn Exchange Bank & Trust Co.(New York).
Dec. 31 '30. *Dec 31 '29.
Resources-
$1.022,406 $1.760,575
Specie
14.289,650 4,626.537
Other currency authorized by laws of U. S
Cash items
29.947.967 46,185,616
Due from Federal Reserve Bank
22,420,820 27,635.123
Due from approved reserve depositaries
300,000
300,000
Due from other banks, tr. cos. and bankers
3,049,945 3.231.866
Stock and bond investments
85.184.268 72,403,211
Loans & disct. sec. by bd.& mtge. or other r. e. coil. 1.955.932 1,429,613
Loans and discounts secured by other collateral 63,164,567 74,119.546
Loans, discts. & bills pur. not sec. by collateral--- 37,504.579 33,491.536
Own acceptances purchased
300.500
414,569
62.680
Overdrafts
29,704
Bonds and mortgages owned
24,290,472 14.915,666
Real estate
14,381.660 13,415,475
2,722.032 3.205,261
Customers' liability on acceptances
1,433.752 1.399,918
Other assets
$3302,112,323 5298483.113
Total
Liabilities,-
515,000.000 512.100.000
Capital
35.431,334 22,603.963
Surplus and undivided Profits
113.035
Reserves for taxes. expenses, &c
21.860,723 10.838.168
Preferred deposits, demand
182.981,5671243.617.447
Deposits, not preferred, demand
35,487.2481
Deposits, not preferred, time
7.879.708 5,136,375
Due trust companies, banks and bankers
2,781,367 3,449,471
Acceptances
737.689
577.341
Other liabilities
$302.112.323 5298483,113
Total
Total amt.of deposits on which int. is being paid-139,467.000 134,459,800
*Name changed from Corn Exchange Bank as of May 21 1929.
Corporation Trust Co.(New York).
Dec. 31 '30. Dec. 31 '29. Dec. 31 '28.
Resources$3367,859
$503.052
$502,996
Stock and bond Investments
844,254
388.826
888,447
Due from trust cos., banks & bankers_
243
175
114
Specie
1.229
1,260
1.062
Other curr. authorized by laws of U.S
2,787
2.635
2,776
Cash items
665,864
585 796
629.813
Other assets
*City Bank Farmers Trust Co.
31,802,100 $1,561,880 32.025.208
Total
Dec.31
'30.
Dec.
31
'29.
ResourcesLiabilities$11,665 Capital
Specie
$500,000
5500.000
5500,000
18,001 Surplus stock
Other currency authorized by laws of U.S
110,132
109.432
108,171
and undivided Profits
$5,173
38,748
Cash items
346.500
expenses,
&c
Reserves
for
taxes,
749,832
Due from Federal Reserve Bank of New York
47.140
129.781
715.971
demand
Preferred
deposits,
38,756,864
150.722,762
approved
reserve
depositaries
Due from
48,625
17,647
26.861
Deposits not preferred, demand
147.769
Due from other banks, trust cos. and bankers
232.358
13,567.821 15,960,972 Due to trust cos., banks & bankers_
Stock and bond investments
749.703
805,083
441.871
Other
liabilities
or
mtge.
Loans and discounts secured by bond &
51,802.100 51.561.880 52,025,208
94,750
Total
97.000
other real estate collateral
360.990
1930.
1929.
1928.
Loans and discount secured by other collateral_
Supplementary-For Cal. Year270.596 Total int. & comm.received during yr
$29,006
$ 2.420
Loans, disc'ts & bills purch. not sec. by collateral.. 5,329,201
12,594 All other profits received during year..
919,363
798,860
Overdrafts
6,099.431
3,750,581 Charged to profit & loss acct. deprec_
8.459
8.037
Bonds and mortgages owned
5,000,000
718.760
757.217
Real estate
Expenses during year, excluding taxes
5.389,381
2,797,852 Amount of divs. declared on cap.stk87,500
130,000
Other assets
21,006
40,243
$74,751.380 PT,K78,199 Taxes paid during year
Tots
* Old Chemical National Bank converted to a State institution and
merged with U. S. Mortgage & Trust Co. as of June 29 1929 with name
as above.
FINANCIAL CHRONICLE
1544
Fulton Trust Co. (New York).
County Trust Co. (New York).
Resources—
Dec. 31 '30. Dec. 31 '29. Dec.31 '28.
$651.024
$832,097
Specie
31,052,777
498.300
841,000
Other eurr. auth. by laws of U. S....
620,000
2,412.590
1,742,856
Cash items
1,153,356
500,000
725.000
825,000
Due from Fed. Reserve Bank of N. Y284.635
1,506,138
Due from approved res. depositaries- 7,143,851
365
Due from other banks, tr cos.& bkers.
247
3.661.309
5,860,422
Stock and bond investments
10,085,881
Loans & disc, secured by bond and
36,350
581,816
569.782
mtge. or other real estate coil
Loans & disct. secured by other coll..,. 5.243,011 18,216.098 11,466,184
Loans, disct. & bills purchased not
secured by collateral
6,359,876 6,419,423 4.281,213
608
269
106
Overdrafts
784.675
878.025
1.000,175
Bonds and mortgages owned
240,294
238,584
238.584
Real estate
210,281
200,721
369,450
Other assets
Total
Liabilities—
Capital
Surplus, incl, undivided profits
Reserves for taxes. expenses, &c
Preferred deposits, demand
Preferred deposits, time
Deposits not preferred, demand
Deposits not preferred time
Due to trust co.'s. banks & bankers
Bills payable
Other liabilities
534,662,096 838,042.814 825.027.363
$4,000,000 $4,000.000 $1.000.000
1.130.062
4,500,000 4.865.974
199,298
7.012.303 14,992,529 6,332,577
1,197,226
14,954.717 13,910,433 15,396,792
2,122.451
56,551
116.950
573.319
1,000.000
111,381
156,928
102,782
$34,662,096 $38.042,814 $25,027,363
Total
Amt.of dep.on which int. is being pd.$22,446.500 $23,466,600 $17.650.000
1929.
1930.
Supplementary—For Calendar Year—
Total interest and commission received during year $918.487 $1,628,213
400,663
111.787
All other profits received during year
474,140
98,000
Charged to profit and loss on account reservee
494.425
510,424
Interest credited to depositors during year
. 313,860
314,397
Expenses during year, excluding taxes
Amount of divs. declared on capital stock 2%
288,000
80,000
(initial quarterly paid in 1930)
Empire Trust Co. (New York).
Dec. 31'30.
Resources—
$19,022,626
Stock and bond investments
793,306
Bonds and mortgages owned
74,739
Loans on bond & mtg.or other r.e.coli.
Loans & disc. sec. by other collateral_ 45.673.969
L'Us. disc. & bills put. not sec. by coll.. 6,965,448
18,896
Overdrafts
Due from Federal Res. Bk.of N. Y-.. 2.435,896
15,220.867
Duefrom approved res. depositaries
3,636,049
Due from other bks.. W.cos. & bkrs
982.796
Specie
535,645
Other currency auth. by laws of U.S..
18,353
Cash items
52,453
Customers' liability on acceptances
528,943
Other &mete
Dec. 31 '29. Dec. 31 '28.
$22.831,624 $20,781.167
1,034,783
957.576
82,229
143.300
50,913,416 49.736.683
9,705,888 5,678.989
74,830
17.198
3,558,043
3.492.870
11,993.650 7.215.554
2,942.591
3.637.388
939.412
745.095
821.616
811.187
18.083
27.538
39.261
16,103
626.256
797,174
[Vox. 132.
Dec. 31 '30. Dec. 31 '29. Dec. 31 '28.
$5,540,193 $4,663,406 $3.159.354
Stock and bond investments
974.500
821,500
859,600
Bonds and mortgages owned
Loans & disc. sec. by bond & mtge.
53,0001
53,000
or other real estate collateral
Loans & disc. sec. by other collateral 12.724,285 12,974,2951 11,901,215
28,800
17,500
272,429
Loans, disc. & bills intr, not sec. by col
3,888
8.962
20.749
Overdrafts
330,769
Real estate
3,129,921
3,126,850 3,650,934
Duefrom Fed. Res. Bank of N. Y
434,699
291.643
786,252
Due from approved res. depositaries_
40.178
101,672
88,004
Specie
122,000
55,000
60,900
Other currency auth. by laws of U.S_
24,469
9,871
7,780
Cash items
89,742
86,703
134,660
Other assets
$24,005,471 822,734,486 $19,908.766
Total
Liabilities—
$2,000,000 $2,000,000 $1,000,000
Capital stock
1,662,515
Surplus fund & undivided profits.-- 3,434,244 3,404,455
233.784
Reserve for taxes, expenses, &c
1,860,272
Preferred deposits, demand
1,216,545
1.073,918
704,645
Preferred deposits, time
14,754,782
Deposits, not preferred, demand
15,780,202
15,813,956
666,893t
time
Deposits, not preferred,
50.092
71,074
61,174
Due to trust cos., banks and bankers_
199,412
380,983
79.777
Other liabilities
Resources—
824,005,471 $22,734,486 $19,908,766
Total
Amt, deposits on which int. Is paid--$17,100,000 $15,733,200 $16,055,600
'Guaranty Trust Co. (New York).
Dec.31 '30. *Dec.31'29. Dec.31 '28.
Resources—
$308,002,310$259,700,968$104,232,390
Stock and bond investments
9.715,395
14,798,925 13,537.529
Real estate
1,458,989
971,139
4,407,303
Bonds and mortgages owned
other
or
Loans on bond and mortgage
4,250,079 6,937,338 4,054.365
real estate collateral
Loans & disc. sec. by other collateral_608,531,788 588,057,791 334,136,025
Loans, discounts and bill purchased
367,238,022 497,714,475 173,590.354
not secured by collateral
1,107,049
3,972,440 12,352,080
Own acceptances purchased
Customers' liability acct. bills purch-134,603,676
1,734,696
2.332,548
69,403
Overdrafts
Due from Fed. Res. Bank of N. Y......137.615,068 97,171,791 61,327,691
Due from iother trust companies.
72,686,492 64,993,732 56,191,723
banks and bankers
64,474
67,876
95,300
Specie
831,634
1,389,270
Other currency auth. by laws of U.S.. 1,644,272
263,043,144
188,245,087
177.618,871
Cash items
Customers' liability on acceptances-157,255,752 187,763,920 94.205,339
2.5,326,828 18,192,639 18,698,499
Other assets
$2,018.085,703$2012258664$1049597112
Total
Liabilities—
$90,000,000 $90,000,000 $40,000,000
Capital stock
Surplus fund and undivided proflts 207,442,797 202,636,023 63,377,018
6,261,842
&c_
expenses,
Reserves for taxes,
27,224,930
Preferred deposits, demand
10.230,765 25.878,232 19.681,733
Preferred deposits time
946,895,660 1058971402 690,011,954
Deposits, not preierred, demand
93,014.537
Deposits, not preferred, time
Due trust cos., banks and bankers-254,344,002 215,474,927 126,812,187
1.218.150
Bills payable
161,595,161 192,624,587 96.819,425
Acceptances
11,676,845
226,673,493
86,472,333
Other liabilities
134,603.676
Bills purchased
Total
$95,959,986 5105581.682 894.057.822
Liabilities—
56,000.000 $6,000,000 $6.000,000
Capital stock
Surplus fund and undivided profits_ .._ 8,008,867 9.300,592 8.858,598
61.367
Reserves for taxes, expenses, &c
10.420,1391 10,454,586 16,071,216
Preferred deposits, demand
3,494,557
Preferred deposits. time
$2,018,085,703$201225866451049597/12
Total
Deposits, not preferred, demand_ __ _ 48,624,331 1 72,265,835 63.658,653 Amt.depos.on which hat. is paid—$1,000,237,000$954,910,498$470,707,389
11,726,934
Deposits, not preferred, time
7,060,458 7,311,183
7,945.880
Due trust co's, banks and bankers
* National Bank of Commerce converted to a State institution and merged
39,261
52.453
16,103 Into the Guaranty Trust Co. as of May 6 1929. Above statement for
Acceptances
210.225
510 880
357,372 Dec. 31 1929 and 1930 is for consolidated institution; for Dec. 31 1928 for
Other liabilities
Trust Co. alone.
$95 959,986 5105581,682 $94.057.822 Guaranty
Total
$68.765,729 $74.331,436 863.939.426
Amt.&smelts on which int. is naid
*Hellenic Bank & Trust Co. (New York.)
*Dec.31'30.
Resources—
$8.597
Federation Bank & Trust Co. (New York).
specie
2,106
laws of U. S
by
authorized
Other
currency
31
Dec.
'30.
'29.
Dec. 31 '28.
Dec. 31
Resources—
23,009
$10,639
$6,528
$4.825 Cash Itemsapproved reserve depositaries
Specie
1,194,464
264,788
138,202
295.184 Due from other banks, trust companies and bankers
Other curs. auth. by laws of U.S
208,715
238,722
240.634
490.815 Due from
Cash Items
1,813,729
and bond investments
1,185.996
1,288,416
Due from F. It. Bank of New York
1.382.211 Stock
247,024
secured by collateral
discounts
and
Loans
220,973
193,04
345,624
Due from oth. bks., tr. cos.& bankers
131,021
bills purchased not secured by collateral
6,502,796 4,181.918 4.763,623 Loans, discounts and
Stock and bond investments
3.371
Own acceptances purchased
Loans & disc, secured by bd. & mtge.
16
Overdrafts
6.594,339
2,749.193
5.555,560
other real estate collateral
3.371
acceptances
on
liability
3,262.641 Customers
Loans & disc, secured by other collet- 3,643.564 4,027,220
37,123
resources
Other
2,802,292
2,769,209
coil4.088,554
L'ns.
pur.,not sec. by
312
Overdrafts
$3,672.546
Total
84,000
325,500
Real estate
Liabilities—
70.189
249.200
Bonds Sr mortgages owned
$1,000,000
1.239
10,023 Capital
Customers' liability on acceptances
506,543
profits
188.171
259.8.52
262.017 Surplus including undivided
Other assets
2,653
Reserves for taxes, expenses, contingencies. &c
278,196
518,143.053 $19,844,374 $20.710,589 Deposits not preferred, demand
Total
1.536,059
Deposits not preferred, time
336,366
Liabilities—.
Due trust companies, banks and bankers
3,371
5750,000
5750,000
$750.000 Acceptances
Capital
9,358
1,156.794
1,186,534
1.073,866 Other liabilities
Surplus, hwl. undivided profits
308,525
Reserves for taxes. expenses, &c
83,672,546
1,742,7711 1,306,829
1.024,053
Preferred deposits, demand
Total
2.079,504
221.5881
Amount of deposits on which interest is paid
Preferred deposits, time
5,543 3611 16,146,616 17,318.953
Deposits, not preferred, demand
8,331.334
• Began business Feb. 10 1930.
Deposits,not preferred, time
7,703
7,344
21.016
Due to tr. cos., banks and bankers
100,000
Bills payable
*Hibernia Trust Co.(New York).
1,239
10,023
Acceptances
Dec. 31 '30. *Dec.31'29.
476,432
50.357
Resource,—
412.678
Other liabilities_
$6.180
$4,167
Specie
152.454
124.293
U.S
of
*19.844.374
laws
by
Other
authorized
$20,710,589
$18,143.053
currency
Total
682
Amt.of dep.on which int. is being pd- 88,191,622 814,877.080 $17.000.000 Cash items
433,214
394.929
Due from Federal Reserve Bank of N. Y
1930.
1929.
4,849.375
5,367.900
Supplementary—For Calendar Year—
Due from approved reserve depositaries
388,212
400,569
Tota,interest and commission received during year $847,086 $1,065,581 Due from other banks, trust companies & bankers
102.902
144,126 Stock and
1.655.855
2.511,932
All other profits received during year
bond investments
8.123
3.946 Loans & dlscts.
or
mortgage
Charged to profit and loss—On account ofdeprec
and
bond
secured by
2,265
21,500
3.470
12,900
On account of other losses
other real estate collateral
520,762
568 458 Loans
4.296.659 8,455,011
Interest credited to depositors during year
discounts secured by other collateral
307.748
2,703,726
781.460 Loans,and
coll..
4,398.601
by
Expenses during year, excluding taxes
secur,
not
discts. & bills purchased
90,000
697
54.051
90,000 Own acceptances
Amount of dividends declared on capital stock.-purchased
17.436
280,697
410,470
56.525 Customers' liability on acceptances
Taxes paid during year
77,950
88,305
Other assets
$18,033,101 $19,037.228
*Fiduciary Trust Co. (New York).
Total
Liabilities—
Dec. 31 '30.
Resources—
- $3,000,000 $3.000,000
Capital
$325
-----------------2,139,578 2,240,562
---__ _ ____-_ ____
Specie ___
profits
868.682 Surplus and undivided
39.242
Due from banks, ----- companies
_- bankers
and
expenses, contingencies. gcc
102.796 Reserves for taxes,demand
361.900
1,247,205
Stock and bond investments
45,658 Preferred deposits, time
000
Other assets
Preferred deposits,
10,163.435 12,995,231
demand
preferred,
not
Deposits,
Total--------------------------------------------------51,017,461 Deposits, not preferred, time
767,032
41,263
200,684
Due to trust companies, banks and bankersLiabilities—
317,887
421,678
$500,000
Acceptances
Capital
80,385
29,249
503,391 Other liabllities
Surplus, including undivided profits
14.070
Reserves for taxes,expenses,contingencies, &c
$18,033,101 $19,637,2243
Total
9,789,052
7,906,891
$1,017,461 Amount of deposits on which int. Is being paid
Total
•Organized in 1930.
(
•Began business May 28 1929.
FEB. 28 1931.j
FINANCIAL CHRONICLE
Lawyers' Trust Co. (New York).
*International-Madison Bank & Trust Co.(New York).
Dec. 31 '30. *Dec.31 '29.
Resources-.
$371,200
Specie
$245,545
Other currency authorized by laws of U. S
38,009
26,050
661,956
Cash items
772,030
Due from Federal Reserve Bank of N. Y
675.511
1,125,668
Due from approved reserve depositaries
571.035
Due from other banks, trust companies & banks..
263,047
88,523
Stockand bond investments
1,649,877
1,917.186
Loans and discounts secured by bond and mtge.
316,081
or other real estate collateral
69,550
2,731.122 2.543.066
Loans and discounts secured by other collateral
Loans,discts. & bills purchased not secur. by coll.- 4,828,822 5,851,451
10,593
10,984
Overdrafts
303,053
Bonds and mortgages owned
356.900
Real estate
400.667
291,955
72,766
Acceptances
86,270
Other resources
574,855
444,435
$13,458,382 $13,839,825
LiabilitiesCapital
$1,750,000 $1,750,000
Surplus and undivided profits
1,596,236 1,598,089
Reserves for taxes, expenses, contingencies, &c--..
153,046
Preferred deposits. demand
192,082
189,184
Deposits, not preferred, demand
3,428,8021 9,448,119
Deposits, not preferred, time
3,825,786!
Due to trust companies, banks and bankers
33,251
7,262
Bills payable
550.000
Re-discounts
1,560.000
400,000
Acceptances
102.672
86,270
Other liabilities
266,527
362,901
Total
Total
$13,458,382 $13,839,825
Amount of deposits on which hit. is being paid.... $4.671.000 $5.019.500
1930.
Supplementary-For Calendar Year1929.
Total Inter-, t & comm.received during year
$662,217
$496,986
All other profits received during year
166,574
76,391
Charged to profit and lossOn account of depreciation
25,049
13,669
On account of other losses
118,764
18,468
Interest credited to depositors during year
30,591
127.433
Expenses during year, excluding taxes
632.288
282,528
Taxes paid during year
1,750
9,893
*Began business Nov. 1 1929, being a consolidation of the International
Union Bank and Madison State Bank.
1545
I
ResourcesDec. 31 '30. Dec. 31 '29. Dec. 31 '28.
Stock and bond investments
35,872,721 $3,763.266 36,698.785
Bonds and mortgages owned
1,956,063 3,054,500 2,122.250
Loans on bond & mtg. or oth. r.e.coll_
97,800
304,325
301,650
Loans & disc. sec. by other collateral_ 14,166,776 13.767,534 12,031.676
Loans,dis.& bills pur.not sec. by coil. 4,178,752 3,627,1714.075.861
94
Overdrafts
966
113
923,664
Due from Fed. Res. Bank of N. Y--776,859 3,020,973
Duefrom approved res. depositaries-- 1,946.722 1.992,608 1,051,097
18.604
Specie
16.342
14.106
Other currency auth. by laws of U. S., 1,050.552
932,343
905,845
1,468.487 1.211.210 3,223,118
Cash items
16.800
Customers' liability on acceptances
209,415
Other assets
202,006
247,212
$31.906.450 $29.649,130 333.792,686
Total
Liabilities$3,000,000 $3.000,000 $3,000,000
Capital stock
Surplus fund and undivided profits... 4,622.546 4,615,117 4.087.809
188,409
Reserves for taxes, expenses. &c
1,311,480 1,595,427 1,481,947
Preferred deposits demand
549,985
Preferred deposits, time
20.769,080 20,175.253 24,997,884
Deposits not preferred demand
1.321,529
Deposits not preferred, time
101,111
96,038
Due trust cos, banks and bankers...-.
95.534
16.800
Acceptances
167,295
129,512
25.510
Other liabilities
Total
$31,906,450 529.649,130 $33,792,686
Amt. of dep. on which int, is paid---$19,411,000 $19,730,400
(7)
1929.
1928.
1930.
SuFgemeulartl-For. Cal. YearTotal t.& comm.rec'd during year.. $1,550,550 $1,923,439 $1,693,048
69,044
135,121
All other profits rec'd during year...
44,660
___
4,991
Charged to prof.& loss acct. oflosses.
33,058
21.037
431.701
436,916
Int. credited to depositors during year
369.665
579,286
611.279
Expenses during year, excluding taxes
616,025
240,000
Amt.of divs, declared on cap.stock
240,000
300,000
102,000
Taxes paid during year
150,000
91,000
Amt.deposits on which int. is paid- 20.756,132 19,730.400 20,704,382
*Manufacturers' Trust Co.(New York).
ResourcesDec. 31 '30. Dec. 31 '29. Dec. 31 '28.
Stock and bond investments
$42,341,433 $74,247,507 $76.167.750
Real estate
13,176,113 13,126,869 5.193.307
Bonds and mortgages owned
26,815,957 31.839.035 17,010,657
Loans on bond & mtge.or oth.r.e.coll. 4,125,055 4,125,054
1,647.465
Loans & disc. sec. by other coil
52,636,231 114,607,875 90,208,441
Loans disc.& bills pur.not sec, by coll. 99.701,781 176.567.514 119,327,916
Own acceptances purchased
198,485
1,220,414
250.613
Overdrafts
60,739
33.729
43,536
Duefrom Fed. Res. Bank of N.Y.... 21,304,971 52,469,093 30,986,168
Duefrom approved res. depositaries..
414.674
836,647 1,312,181
Due from other tr.co's, bks.& bankers 1,779.438
1,544,336 1,253,199
Specie
757,028
617,886
661.446
Other currency auth. by laws of U.S. 9,459,093 3.219.240 2,564,313
Cash items
16,021.324 20.839,741 36,201.957
Customers' liability on acceptances.. 14,006.937 11,952,635 6,488,816
Customers'liability on bills purch_ 21,572.150
Other assets
1,321,028 1,408.606 1,114,469
*International Trust Co.(New York).
ResourcesDec. 31 '30. Dec. 31 '29. Dec. 31 '28.
Specie
$25,041
$24.197
$3.836
Other currency auth. by laws of U.S.
251,700.
125,317
Cash items
990,219 1.394,843
1.219,281
Due from Fed. Res. Bank of N.Y
826,592 1,956,283 1,977.116
Due from approved reserve depos_ _ _ 1,456,514
445,888
587,330
Duefrom oth. bks., tr. cos.& bankers
493,960
359,695
139,395
Stock and bond investments
1,661,800 3,131,910 2,567.351
Loans & disc. sec. by bond & mtge.
or other real estate collateral
214,436
110,192
851,703
Total
Loans & disc. sec. by other collateral 2.226,113 8.229,084 7.322,871
$327,119.136 508.188,924 389,472.792
Lns.,disc. & bills pur. not sec. by coll. 2,812,550 3,884.740 2.010.403
LiabilitiesOwn acceptances purchased
558,163
266.056
247,040 Capital stock
$27,500,000 $27.500,000 $17,500,000
Overdrafts
10,984
1,871
Surplus fund and undivided
23,610.265 58.510,691 34,612,529
Bonds and mortgages owned
2,236,378 2,717.328 2.568.939 Reserves for taxes, expenses,profits..
10,870,806
&c
Real estate
997,784
1,046,457
41,677 Preferred deposits, demand
6.745.9181 12,646,629 7.077.696
Customers' liability on acceptances... 2,151.687 2,432,436 2.279,086 Preferred deposits, time
2,027,759
Customers'liability on bills purchased 2,783.552
Deposits, not preferred,demand
115,110,6741368,645,970 307,858,539
Other assets
4,151,258 6.216,936 1,537,892 Deposits, not preferred,time
91,178,026
Due to trust companies and banks
4,393,896 5,682,218 4,229.796
Total
$23.887,113 $32,222,765 $23.654,799 Acceptances
14,645,108 32.448.865 16,277.747
Bills payable
8,500,000
Liabilities21.572,150
Capital
33.200.000 $3,200,000 $4,000.000 Bills Purchased
1,916.585
964,534 2,754,551
Surplus,including undivided profits-- 1.789,910 5,125,707 2,228.964 Other liabilities
Reserves for taxes,expenses,&c
3,141,068
• Total
$327,119,136 508,188.924 389.472.792
Preferred deposits, demand
86,002 1.189,643
520,727 Amt.dep.on which
133,735,000 261.225,000
int. is Paid
Preferred deposits, time
575.805
Deposits, not preferred, demand_ _... 5,871,659 14.182,998 12.882,697
Supplementary-For Cal. Year1928.
1930.
1929.
Deposits, not preferred, time
Total int.& comm.rec'd during yea!'.
2,644,435
$13.919,643
Due to tr. cos., banks and bankers
295,868 AUother profits received during year.
1,016.340
281,858
3,977.413
Acceptances
2,470,798 2,527,840 2,303.617 Amt, of diva. declared on cap, stock.
3.885,000
Other liabilities
307,544 5.714,719 1,442,926 Amt.deposits on which int. is allowed
182,213,000
Total
*'United Capitol Nat. Bank & Trust Co. merged into Manufacturers'
323,887.113 832,222,765 $23,654,799
Amt.ofdep.on which int.is being paid $6.896,100 $12,606,442 $12,336,400 Trust Co. as of June 6 1928.
State Bank & Trust Co. merged into ManuBills purchased
facturers' Trust Co. as of Jan. 26 1929. Above statements for Dec. 31
2,783,552
1929 and 1930 is for both companies. For Dec. 31 1928 for Manufacturers'
Supplementary-For Cal. Years1930.
1929.
Trust Co. only. Pacific Trust merged into Manufacturers' Trust Co. as
1928.
Total int. & COMM.nS rec, during year $1,055,019 1,206,383
$244,417 of June 27 1930, not included in 1929 or 1928.
All other profits rec. during Year..--165,772
7,390
1.238
ant, credited to deposits during year.
255,293
228,489
45,104
Expenses during year,excluding taxes
Marine-Midland Trust Co. (New York.)
394.351
877.100
146.939
Amt.depos. on which int. is paid.- 6,896,100 15,654.502 7,645,100
ResourcesDec. 31 '30. Dec. 31 '29. Dec. 31 '28.
Stock
and
bond investments
321,042,107 $13,577,157 $13,516,766
*Began business Oct. 17 1927 as International Germanic Trust Co.
1,585,590 1,773,515 2,054,585
Name changed to International Trust Co. as of Jan. 21 1930. Terminal Bonds and mortgages owned
731.000
Trust Co. merged into International Germanic Trust as of Feb. 28 1928. Loans on bond & mtge.or oth.r.e.coil '829,000
Loans & disc. sec. by other collateral- 26,797,578 21,540,216 22,376:348
Above is combined statement of both companies for all periods.
Loans disc. & bills pur. not sec. by coll 12,884,059 12,507,669 10,324,881
Own acceptances purchased
13.000
55.836
Overdrafts3,479
71,455
Due from Fed. Res. Bank of N.Y... 8,422:062 8,108,244 8,891.376
Irving Trust Co.
Real estate
87,530
Duefrom other bks.,tr. cos.& bkrs
558,936
3,524,913
647.762
Dec. 31 '30. Dec. 31 '29. Dee.31'28. Specie
112,193
321.914
310,939
Resources$
Other
500,000
450,000
700.000
currency auth. by laws of U.S.
Specie
$912,032
$20.423
218,049 Cash items
6.987,788 5,707.075 9.844.511
curr.anther,by laws of U.S.- 7.342,032 3,785.809 3.466.494
Other.
liability on acceptances- 7,429,238 2,148,925 2.533.767
Cash Items
121,078,986 178,772,684 228,953,321 Customers'
Customers'liability on bills Dumb
Due from Fed. Res. Bank of N. Y
72,669.169 62,124.745
8
'
327
'
481
Other assets
562,321
442.510
379.995
Due from other bits., tea. cos,and bkrs 19,884.837 28.380,618 70,283,342
24.149,856
Stock and bond investments
146,004.889 88.201.775 83.390.739
Total
$99,365,820 $67.959,466 $71,588,139
Loans& discts. on bonds & mtge.deed
or other real estate collatwal
723,948 6.622.519 5.068,090
LiabilitiesLoans & discts. aix. by other collat-229,804.751 241.510.824
Capital stock
$10.000,000 $6,000,000 $4,000,000
Loans disc. & bills pur., not sec. by co1135,257.487 165.518.489 267.161,966 Surplus fund and undivided profits
9,527,095 5.659.171 3.771.407
134,690.007
Own acceptances purchased
1,886,497 4,099,935
Reserves
478,170
for
expenses,
taxes,
&c
412.735
Overdrufts
73.671
2,038.5751 3,380,689 3,195,002
Preferred deposits, demand
142,232
288.643
Bonds and mortgages owned
9.940,883 10.486,415 12.579.240 Preferred deposits, time
1.644,060
Real estate
18.668.356 9,784,890
Deposits, not preferred,demand
44,428.2191 47.767.611 54.355,304
372.953 Deposits,
Customers' liability on acceptances_ 67.000,562 60.743.579
not preferred, time
2,67l,O88J
57.715.393 Due
Customers'liability on bills purchased 44,264,743
12,673,547 2,176,207 3,121.030
trust co's, banks and bankers
Other assets
5,853.977 5415,454 6.337.571 Acceptances
2.288,144 2,606,093
7,477,761
Bills purchased
8,327,481
Total
Other
687,644
99,824
539,303
liabilities
3881.366.820$865.980.391$895,138.399
Liabilities$99.365.820 867,959.466 $71,588.139
Total
$50.000,000 850.000.000
Capital stock
Amt,deposits on which int.is paid--- 56.950,000 35,700,000 40.400,000
Surplus fund and Undivided profits 85,390,453 83.740,994 $40,000.000
54,083,962
1930.
1929.
1928.
Reserve' for taxes, expenses, &c
Supplementary-For Cal. Year4,810,286
Preferred deposits, demand
37,142,3391 16.677,775 12,483.810 Total int.& comm.received during yr $3,236,675 $3,006,301 32,643.079
All other profits received during year.
126,392
127,624
Preferred deposits, time
176,023
11.243,265
Deposits, not preferred, demand__ _399,255,26015
0 6.263.317 588,400,462 Charged to profit and lossOn account of depreciation
49,410
Deposits, not preferred, time
37.888
14.435.365
78,358
banks
210,124
and
On account of other losses
bankers_156,727.922 131.466.123 131,145.038
166,812
Due to trust cos.,
861,262
855,326
Acceptances
69.692,245 64,275,685 60.687.543 Int.credited to depositors during year
788,494
Expense,during rear, excluding taxes 1,406.049 1,230,799 1,216.802
44.264,743
Bills purchased
800,000
doe
ee eivs. on capital stock
450,000
Other liabilities
8.494,942 13.556,497 8.337,584 Amt.of d
400.000
Taxes paid during year
50,500
50,000
53,500
Total
$881.366,820$865.980,391$
895.138.399
.0 Formerly Fidelity Trust Co. Name changed to Marine Midland Trust
Amt.dep on which int,is being paid 3378,253,8008343.726,7003329,436.093
CO. as of July 1 1930.
1546
FINANCIAL CHRONICLE
New York Trust Co. (New York).
ResourcesDec. 31 '30. Dec. 31 '29. Dee.31 '28.
Stock and bond investments
$96,635,147 $41,022,045 $19,584,121
325,005
362,903
Real estate
1,657,256
414,150
Bonds and mortgages owned
4,570,535 2.049,787
Loans on bond and mortgage or
other real estate collateral
5,014,740 7,785,900 2,440,400
Loans & disc. sec. by other collateral_ 90,810,216 115,415,357 111,744,843
Loans, discounts and bills purchased
not secured by collateral
43,142 238 54,933,875 60.090,846
313,853 1,724,288
2,393.965
Own acceptances purchased
199,500
356,893
68,388
Overdrafts
Due from Fed. Res. Bank of N. Y 40,353,272 34,284,011 29,056,103
Due from approved reserve deposit- _ 2,848,879
182,301
275,109
652,942
Due from trust co's, banks & bankers
36,784
71.141
61.210
Specie
512,871
540,646
568,158
Other currency auth. by laws of N.Y.
84,398,968 90.831,834 201,450,951
Cash items
Customers' liability on acceptances- 37.024,343 42.604,232 37,659,443
42,845,507
Customers' liabilities on bills purch
6,007,411 11,174,347 8,585,238
Other assets
$4459,053,169 1401864.540 1474164,237
Total
Liabilities$12,500,000 $12,600,000 $10,000,000
Capital stock
Surplus fund and undivided profits 35,554.654 34,276,623 25,938,102
3,997.025
Reserves for taxes, expenses, &c
11,767,719 17,113.044 20,326,321
Preferred deposits, demand
15,924,800
Preferred deposits, time
176,458,392 218,169,461 252,207,474
Deposits, not preferred, demand
12.240.694
Deposits, not preferred, time
Due trust co's, banks and bankers-108,619,336 70,644,993 122,289,393
37,705,942 44,272,979 38,880,430
Acceptances
42,845,507
Bills purchased
1,439,100 4,887,440 4,522,517
Other liabilities
$4459,053,169 8401864,540 3474164,237
Total
(7)
Amount deposit on which hit is paid_3269,112,255 218,969,963
1929.
Year1928.
1930.
Cal.
Supplementary-For
$15,589.876 $12,405,824
Total mt.& comm. rec'd during year_
All other profits received during year_389,035 1,021,206
3,799,235 3.648.825
Int. credited to depositors during year
4,188.518 3,469,182
Expenses during year, excluding taxes
2,375.000 2,000,000
Amt. of diva. declared on capital stk_
1,096,500
779,360
Taxes reserved and pd. during the yr..
218,969,964 287,231,142
Amt. deposits on which int. Is paid__
a As of Nov. 15 1927. b As of Nov. 15 1926.
*(J. Henry) Schroder Trust Co.(New York).
[17ta. 1216
Title Guarantee & Trust Co.(New York) Concluded.
Dec: 31 '30. Dec. 31 '29. Dec. 31 '28.
LiabilitiesCapital stock
$10,000,000 $10,000,000 810.000,000
Surplus fund and undivided profits- 24,830,015 24,321,558 23.977.886
913,034
Reserves for taxes, expenses, Ac
3,678,953 2,275,757 3,800,677
Preferred deposits, demand
40,069,1441 45,331.321 47,771,064
Deposits not preferred, demand
1.800.9391
Deposits not preferred, time
86,529
313.102
165.270
Due trust co's. banks and bankers
31.500
34,779
29,555
Acceptances..
1,333.268
1.182,759 2.112,851
Other liabilities
- 382,669,669 $84,162.795 $87.227,497
Total
.Amt. deposit on which int. Is paid---139,288,247
1928.
1929.
1930.
Supplementary-For Cal. YearTotal int. & comm.reed during year.. $33,473,307 $4.100,588 $3.912.192
All other profits received during year- 8,033,476 8,773,457 9.943,784
11,506,783 12,874.043
(7)
Total income for year
Charged to profit and loss19,341
19,025
40,328
On account of depreciation
202.459
251.043
375.775
On account of losses
806.783
637,578
839,610
int. credited to depositors during year
Expenses during year, excluding taxes 5,619,823 5,903,240 6,208.546
3,600,000 3,600.000 3,600.000
Amt.of diva, paid on cap. stock
919,123
882,469
982,970
Taxes paid during the year
39,288.247 40.461.138 46.053,807
Amt. deposits on which int. Is paid
Trust Company of North America (New York).
Dec. 31 '30. Dec. 31 '29. Dee. 31 *28.
$3,540
.$2,138
Specie
8
2.531
128,18
142,654
1'
80.112
Other currency auth. by laws of U. S.
1,584
8.154
Cash items
800,205 1,663,922
546.577
Due from approved res. depositaries_
97.452
117.620
204.841
Due from other bks., trust cos.& bkrs
748.702
740.592
1.137.658
Stock and bond investments
Loans & disc'nts secured by collateral 1,173,985 1.505,807 2,565.770
50.000
Due from Federal Reserve Bank
Loans, dlsets & bills purch. not sec.
992:0
0 1,262,234
206 8
847,239
by collateral
Own acceptances purchased
36'2
12
472
645
Overdrafts
2
43
05
5.6
475
329,878
316,055
Bonds & mortgages owned
101,069
268,916
233.460
Customers' liability on acceptances
1,410
Customers liability on bills purchased
96.509
280,370
242,201
Other assets
$4,421,399 16,030,564 37,067,091
Total
ReSOUICeS-
Mabflitles-Dec. 31 '30. *Dec. 31 '297
Resources$500,000
$500.000
$500,000
$390
$1.343 Capital stock
Specie
337.293
314,075
260.853
5,211
4,058 Surplus fund & undivided profits
Other currency authorized by laws of U. S
2,539
297,670
148.319 Reserve for taxes, expenses, &c
Cash Items
551,948
533,675
297.889
demand
deposits,
Preferred
Y
N.
224.349
of
150.528
Bank
Due from Federal Reserve
13,257
24,791
25.000 Preferred deposits, time
Duefrom other banks, trust companies and bankers
2,054,636 3,920,427 5,047,387
3,177.447
616,847 Deposits not preferred, demand
Stock and bond investments
632,863
Deposits not preferred, time
Loans and discounts secured by collateral
346.352
157,403
239,833
638:689
1%188 Due to trust cos., banks & bankers
Loans, discounts and bills purch. not sec. by collet_
146.250
Bills
payable
144,619
5.772
assets
Other
285.373
278.871
109.770
$4,683,288 $2,713,117 Acceptances
Total
1,410
Bills
purchased
Liabilities60.280
182.987
243,683
$700,000
3700,000 Other liabilities
Capital
440,274
370,400
$4,421,399
Surplus and undivided profits
Total
24.932
Reserves for taxes, expenses, contingencies, &c
8/
EIR2:85
Amt.of dep.on which int.Is being Dd. 41.765,683 12
1,024.688
Preferred deposits, demand
903,787
Preferred deposits, time
1,566.786 1,111,807
Deposits, not preferred, demand
13,767
110.103
*Underwriters Trust Co.(New York).
Due to trust companies, banks and bankers
404,800
Bills payable
Dec. 31 '30. *Dec. 31 '29.
9,054
16,007
Other Illibllities
Resources-$2.163.
In:529
Specie
28,230
S
U.
$4,683,288 32,713,117 Other currency authorized by laws of
Total
122,024
$3.416,122 11,012,066 Cash items
Amount deposits on which interest is being paid
166.948
1,652.034
Due from approved reserve depositaries
1.705
•New, began business May 24 1929.
Due from other banks,trust companies and bankers 4,153,688
1,017.032
investments
bond
Stock and
Loans and discounts secured by bond and mortTimes Square Trust Co. (New York).
112.250
gage or other real estate collateral
2,953,458 1,384.700
Dec. 31 '30. Dec. 31 '29. Dec. 31 '28. Loans
Resourcesand discounts secured by other collateral
645,933
$2,933
$25.511
321.480 Loans, discounts and bills purch. not sec. by coll... 3,679,999
Specie
470
155,016
170.035
135.213 Overdrafts
Other curr. author, by laws of U.S
623
164
5
5
8
9
1
30,510
323:3
items
483.087
Cash
Customers' liability on acceptances
147,139
285,815
368,588
658.565 Other assets
Due from F. R. Bank of New York
115,421
105,981
87.569
Due from banks. tr. cos. & bankers...
586,305
$3,514,169
Investments
1.717.185
$13,571.274
bond
1,633,359
Stock and
Total
Loans & disc. sec. by bond & mtge.
54,000
80.325
or other real estate collateral
Liabilities691,808
$1,675,000 11,000.000
collateral_
989.048
1,446,785 Capital
Loans & disc. sec. by other
1,002,189
1.431,534
3.766,077 3,317.018 Surplus and undivided profits
L'ns. disc. & bills.pur.,not sec.by coll. 3,538,656
194,415
11,501
78.783
purchased
&c
expenses,
acceptances
39.748 Reserve for taxes,
Own
200,127
4,051
1,270,052
555
2
1,26
Overdrafts
deposits. demand
Preferred
4,800
151,658
723,125 Preferred deposits, time
Bonds and mortgages owned
29,300
1,090,266
6,747,451
preferred, demand
Real estate
not
Deposits,
47,306
185,158
2,015,591
173.546 Deposits, not preferred, time
Customers' liability on acceptances
213.355
308,351
30,510
237.584 Acceptances
Other assets
221,586
55.063
liabilities
Other
5,904,890 18.434,325 $8.958.305
Total
$3,514,169
$13.571,274
LiabilitiesTotal
$1,000.000 $2,000,000 32,000.000 Amount
Capital
of deposits on which interest is being paid $5,550,325 $1,035,947
988.610
547,148
532.427
Surplus. Including undivided profits
313,324
&c
Reserves for taxes, expenses,
business Nov. 26 1929.
Began
*
137,922
130,098
139,6841
Preferred deposits, demand
4,2671
Preferred deposits, time
Deposits, not preferred, demand---- 1,181.2411 4,118,116 5,404,283
828,4451
United States Trust Co. (New York).
Deposits, not preferred, time
58,827
12,274
46.703
Due to trust cos., banks & bankers... 1,355.000
1,300,000
Dec. 31 '30. Dec. 31 '29. Dec. 31 '28.
600.000
ResourcesBills payable
$20,122,040 118,580.760 317.277,000
203,842
47,306
173.546 Stock and bond investments
Acceptances
1,500,000
1,500,000
1,500,000
68,470
34,739
71.248 Real estate
Other liabWties
6.977,293 6,238.010 6.313.686,
Bonds and mortgages owned
27.000
35.000
15.904,990
38,434,325
38.958.305
Loans on bond and mortgage
Total
collat. 37,974,809 54.834,527 56,762.249
Amt.of dep.on which int. is being Pd. 31,056.000 $2.136.060 $3,269.722 Loans & disc, secured by other
purchased
bills
and
1929.
1928.
discounts
1930.
Loans,
YearsSupplementary-For Calendar
3,944.579 2.577.636
3,538,381
$411.430
not secured by collateral
1401.638
Total Int. & comm'ns rec. during yr...
4,400,000 5,200,000 4,300,000
22,674
26.442 Due from Fed. Reserve Bank of N.Y. 14,153,869
9,823.563
9,442,061
All other profits received during year.
depositaries
res've
approved
Due from
604.018
634,965
Charged to profit and loss498,916
3.794 Other assets
On account of other losses
$99,185,152
8100429,902
Int. credited to depositors during year
$89,165,308
34
2b1g
29117?
Total
Expo. during year, excluding taxes
2,400,000 2,800.000
Amt. deposits on which int. Is paid
Liabilities2,744
2,000
Taxes paid during year
Capital stock
00
1',712091°
2
503193 1
0
P,
fund & undivided profits
Surplus
1,217,938
Title Guarantee & Trust Co. (New York).
Reserves for taxes, expenses, &c..
48.282.916
48,270.286
7.899.517
Dec. 31 '30. Dec. 31 '29. Dee. 31 '28. Preferred deposits, demand
27,054.641
R480Ura4-515,584.383 $11,036,980 $12.729.647 Preferred deposits, time demand
23.772.135 20.231,035
17,394,226
Stock and bond investments
preferred,
not
6.995,570 6,072,318 5.032.280 Deposits,
4,562,774
Reel estate
19.490.524 24,868,221 23.061.449 Deposits, not preferred. time
71,580 3.721,851
1,166,050
Bonds and mortgages owned
es banks and bankers
3.783,838 3.655.159 D
litsi.,
stbico
ua
1,545,037
Otuheertru
1,606,760
Loans on bond & mtg. or oth.re.coll. 2,497.030 14,419.178
366.665
Loans & disc. sec. by other collateral- 14.052,365 12,685.459 15,150.617
13.812.547
12,001.726
U9,185,152
coll.
1100429,902
389.165.308
Loans dis. & bills pay, not sec. by
5.080
2.401
1,958
Total
28.
7)
19
(
paid_352,641923,04.36 67.231.656
Overdrafts
2,188,999 2,392.796 2.906.307 Amt. deposits on which int. Is
Due from Fed. Res. Bank of N. Y
2,900,696
Year-4,027.565
3,362,520
Due from approved res. depositaries..
-For. Cal.
Supplementary
$5,256,210
5,653
29
9
6
1
56,4
87.782
57,623
105,458
Year $7.391,234
Due from other tr. co's, bks., bkrs.,Ac
& comm. rec'd during
825.995
672.658 Total int.profits
862,113
Specie
received during year
1.689,017
4
9 47
890.410
830.555 All other
828.923
Other currency auth. by laws of U. S.
depositors during year 1,200,950 1,76(;7
to
credited
Int.
863.793
989.617
3,949.304
3,450.154 2,995,842
excluding taxes 1.046,647
Cash items
Expenses during year.on
1.4(10,000
1,40(1.000
1,400,000
stock
31.500
34.779
capital
29,555
Customers' liability on acceptances
declared
diva.
of
Amt.
731.560
607,889
695.979
1,193,780
1.277.726
1,218,39/
Other assets
Taxes paid during the year
67,231,656 71,935,790
on which int. is paid._ 52,642,437
$82,669,669 $84.162.795 887.227.497 Amt. deposits
TotaL
11:25:1841
11187:(31g
FEB. 28 1931.]
1547
FINANCIAL CHRONICLE
BROOKLYN COMPANIES
*Brooklyn Trust Co.(Brooklyn).
Kings County Trust Co.(Brooklyn).
*Dec.31'30. *Dec.31'29. •Dec.31'28.
Resources$47,461.218 534,034.028 $22,694,929
stock and bond investments
7,388,533 6,422.177 2,242.010
Real estate
5,932.365 5,153,022 4.924.575
Bonds and mortgages owned
891.758
Loans on bonds & mtg.or 0th. r.e.roll. 1.864.187 1,764,816
Loans and disc. sec. by other collateral 38,997.215 40.511.118 32,949.693
Loans,disc & bills per not sec. by coll. 24.908.030 32,369.990 7.615.418
194,010 1.783,790
Own acceptances purchased
21.742
1,779
5.301
Overdrafts
15,741,727 14,929,772 8,420,161
Due from Fed. Res. Bank of N.Y
757,766
293.424
Due from approved res depositaries_ 1,753,343
208,273
602,599
Due from other banks and trust cos._
861,647
589.087 1,369.283
Specie
798,342
Other currency auth. by laws of U.S. 2,898,130 1,471.920
15,353.565 13.367.987 9,093,465
Cash items
9,236,514 4.318;231
3,400
Customers' liability on acceptanees
11,404,140
Customers liability & bills purch
624,566
2.562,252
Other assets
639.115
Total
$186888694 $159107881 $91,433,238
LiabilitiesCapital stock
$8,200,000 $8.000,000 $2,080,000
Surplus fund and undivided profits_ _ _ 21,081,177 22,478.486 6,455,941
2,921,712
Reserves for taxes, expenses, &c
Preferred deposits, demand
20.987.592 20,189,294 11,187.672
6.131.630
Preferred deposits, time
Deposits not preferred, demand
84.098.917 100,902,503 66.554,559
15.577.3831
Deposits not preferred, time
Due trust cos., banks and bankers....- 5,087,519 1,345,218
884.820
Bills payable
3,500.000
Acceptances
9,240,577 4,318,231
3,400
Bills purchased
11,404,140
2.158,047 1,874,149
766.846
Other liabilities
•
$186888694 5159107881 $91,433.238
Total
Amt. deposits on which Int. Is paid $108741 200 599.644,697 $68,473.321
*Bank of Coney Island merged into Brooklyn Trust Co. as of Jan. 10
1928. Mechanics Bank merged into Brooklyn Trust Co. as of Feb. 8 1929.
Guardian Nat. Bank and State Bank of Richmond County merged into
Brooklyn Trust Co. as of Jan. 20 1930.
Dec. 31 '30. Dec. 31 '29. Dec. 31 '28.
Resources58.971.524 55.298,662 $5.909.478
Stock and bond investments
210,000
210.000
210,000
Real estate
2.370.400 1,331.500 1,622.000
Bonds and mortgages owned
455.085
.
167,475
Loans on bond & mtg. or 0th. r.e. coll.
Loans & disc. sec. by other collateral- 13,085,012 17,946,679 18.836,043
Lo
ovaeri.isr
d dalfsta
c.& bills pur.not sec. by coll.. 3,679,855 2,629,039 2,088.031
358
235
13
Due from approved res. depositaries_ 6,497.978 4,702.939 3,416.057
1,513.662
13,144
1,53248:791426
Duefrom other tr. cos., bks.& bankers
24.072
34.505
Specie
2.993,655 3,101.570 2.195.474
C
Oas
thh
eric
te
um
irsency auth. by laws of U.S
215,683
76,163
64,864
260.013
256,630
275,342
Other assets
$38,363,767 $37,541,505 $36,742,573
Total
*Globe Bank & Trust Co.(Brooklyn).
*Dec. 31 '30. *Dec.31 '29.
ResourcesSpecie_____ _ ________ $162,540
$77,949
270,897
Other currenciautiloitrie-d-ity" ____
171,765
_ ofif. S
Cash items... _ _ _
393.879
_ ____',
491,169
Due from Feri_eral Reserve ifarili oTh.Y
656.896
886,910
Due from other banks, trust companies & bankers.
145,598
162.539
Stock and bond investments
2,655.191
1,628,926
Loans and discounts secured by bond and mtge.
53,100
or other real estate collateral
37,287
Loans and discounts secured by other collateral...... 1,300.694 2,177.932
Loans, disc. & bills pur. not secured by collateral- 4,601,926 5.768.654
Overdrafts_____1,045
10,650
_,
453,931
Bonds and morteeice owned
490.200
1 0)9.033
Real E,
tate. _.
925,815
51,519
Customers' liability" on acceptances
108,439
269.294
242.205
Other assets
Total ____
LiabilitiesCapital ___
Surplus and
Reserve for taxes, expenses, &c
Preferred deposits, demand
Preferred deposits, time
Deposits not preferred, demand
Deposits not preferred, time
Due to trust companies, banks and bankers
Bills payable
Rediscounts
Acceptances
Other liabilities
$12,025,543 $13,180,440
T12R $10:288
_ii;aNirciwii;iii;__________________ $1,,100,065
205.677
172,566
4,626
4,300,797 10,243,326
3,599,175
7,990
11,820
458,750
371.000
51,519
108.439
482,680
469,816
Liabilities
Capital stock
Surplus fund and undivided profits
Reserve for taxes, expenses, &c
Preferred deposits, demand
Deposits not preferred, demand
Deposits not preferred, time
Due trust co's, banks and bankers_....
Other liabilities
$500,000
6,453.636
73,600
10.917,418
18,655,4891
1,533.7551
162,521
67.348
$500,000
6,347.412
$500,000
5,895,262
5,817.916
6.351,121
22,501,731 22.752,225
1.632,676
208,565
1,597.808
179,362
Total
$38.363,767 $37,541.505 536.742.573
Amt.of deposits on which int. is paid-$28,745,200 $28,511,600 $28,564,000
Midwood Trust Co. (Brooklyn).
ResourcesDec. 31 '30. Dec. 31 '29. Dec. 31 '28.
Stock and bond investments
$1,311,157 $1,234.794 $2.100,575
425.097
426,474
Real estate
474,717
1,109.130
1,170,923
Bonds and mortgages owned
1,186.571
775.150600.585
548.018
Loans on bond & mtg. or oth.re.colt_
Loans and disc.sec, by other collateral 2.195.461
2,086,633 2,101,292
Loan's, discounts and bills purchased
not secured by collateral
4,207,947 4,446,258 5,215,765
1.349
1,199
Overdrafts
477
1,235,971
Due from Fed. Res. Bank of N.Y
743.184
1,011,962
101.362
Duefrom other tr. cos., bks.& b'kers136,007
161.553
23.800
Specie
43.200
•
12,600
290.689
Other currency auth. by laws of U.S_
200.028
444,249
1,026,512
Cash items
847.728
714.239
1.550
Customers' liability on acceptances....
3,130
154.801
Other assets
260,664
43.418
Total
$12,315,499 $12,372,242 $14,388,478
LiabilitiesCapital stock
51.000.000 51,000.000 $1,000.000
Surplus fund and undivided profits
574,464
400,406
598.783
Reserve for taxes, expenses, &c
1,361
713,980
Preferred deposits, demand
1,206.302
849,852
50,000
Preferred deposits, time
Deposits, not preferred, demand_ __ _ 8,101,6241 9,642,040 11,870.144
Deposits, not preferred. time
1,493.263
1.550
3.130
Acceptances
228.340
281,567
Other liabilities
59,513
Total
$12,315,499 $12,372,242 514.388.478
Amount of dep s on which int. is paid- $6.421,000 55.892.000 $7.180,000
Supplementary for Calendar YearTotal interest and commission received during year
Discount
All other profits received during year
1930.
$290,695
229,916
155.156
1929.
$322.844
292.847
139.347
$755.038
$675.767
Total gross
216,343
$165,956
credited to depositors during year
$12.025,543 $13,180.440 Interest
Total
442.663
634.569
Expenses
during
excluding
taxes
year,
Amount of deposits on which int. is being paid- $4,851,000 $5,821,100 Taxes paid during year
11.713
13,626
*Formerly Globe Exchange. Name changed as above Dec. 1 1929.
Balance
def$138,378 sur$84.319
The Globe Bank & Trust Co. was consolidated with the Erasmus State
60.000
Amount of dividends declared on capital stock.-$60.000
Bank, Sept. 211929, and with the Rugby Nat. Bank, May 311930.
BOSTON COMPANIES
Bank of Commerce & Trust Co.(Boston).
ResourcesDec. 31 '30. Dec. 31 '29. Dec. 31 '28.
$732,842
United States bonds
$311,001
$387,620
609.699
Other stocks and bond
Loans and discounts
6,344,283 6:275:177 7,264,802
Furniture and fixtures
60.024
77,693
39,500
Cash In reserve banks
438.844
699,728
939.812
Due from other banks.
536.762
316,028
'258,142
vaults
91.733
87,878
Cash in
125.269
Customers' liability acct. acceptances
24.851
166.092
Customers'liability on letters of credit
25.418
47,475
6,533
Foreign bills department
16,526
Investment in B. of C. Bldg
300.000
287,500
200.000
475,000
Loans made for others
29,616
_ __
Interest accrued.
12.388
7.434
12.000
Real estate held by for.elosure
7.303
Other resources
*Bence Commerciale Italiana Trust Co. (Boston) Conc.!,
Dec. 31 '30. Dec. 31 '29.
Capital stock
$750,000
$750,000
Surplus fund
375,000
375,000
75,542
68.645
Undivided profits, less exp., int. and taxes paid....
4.538
2,997
Reservedfor taxes and interest
12,591
2,473
Reserved for contingencies
Due to other banks
186,297
Demand deposits:
637,958
518,831
Subject to check
5,912
7,592
Certified checks
11,016
26,486
Treasurer's checks
Time deposits not payable within 30 days:
24,500
34,370
Certificates of deposit
157.584
296.912
Open accounts
27.303
3.466
Acceptances of other banks & bills of exch., &c..-....
2
Teller oven
298,192 2,456.058
Total
58,958,934 58.967.308 39.890.995 Foreign exchange future contracts
Liabilities$2,588,276 $4,_520.989
Total
51.000.000 51.000.000 $1,000,000 Savings
Capital stock
$324,985
$4498,023
department (additional)
434,197
423.429
Surplus fund & undivided profits
411.003
4,100.914 3,983,347
Demand deposits
4.925.260
*Incorporated in 1929.
2,880.194 2,308,613
Time deposits
2.511.739
343.629
274.888
Due to banks
228.925
Boston Safe Deposit and Trust Co. (Boston).
450,000
Bills payable and rediscount
450.000
Acceptances
26,613
166.092
Dec. 31 '30. Dec. 31 '29. Dec. 31 28.
Resources25.418
Letters of cred. executed for cust rs$1.947,355 $2,794,466 52.151.047
47,476 Bonds and stocks
200,000
475,000
Loans held for others
16,913,021 17,747.210 16.792.050
100,000 Loans
742.845
Travelers letters of credit
822.042
824,513
500 Cash In office
1,679.310
4.592.757 2,258,389
Cash In banks
$8,958,934 88.967.308 59.890.995 Exchanges for clearing house
967,213
510.221
Total
498,564
903
41.930
25,578
Overdrafts and accrued interest
35,457
2.624
2,071
Cash items
*Bence Commerciale Italiana Trust Co,(Boston).
1.745.331
1,700,000 1.700.000
Real estate
Dec. 31 '30. Dec. 31 '29. Boston Safe Dep. & Tr. stock in
Resources
5.250
130.500
31.350
$767.058
$601,849
Stocks and bonds
hands of directors
310,408
Demand loans with collateral
377,681
526,535.209 526.330.930 523.795.858
Total
collateral
11,500
with
loans
47.404
Time
Liabilities236,566
383,896 Capital
Other time loans
$2,000,000 $1,000.000 51.000,000
658 Surplus stock
Bankers' acceptances purchased or discounted........
3,000.000 4,000.000 3.000,000
99
53 Profit and loss
Overdrafts
686.379 1.311,449
744.814
3.466
Customers'liability on account of acceptances-27,303 Deposits
20,593,253 20,488,316 18.376.978
1
1 Reserved for taxes
Safe deposit vaults,furniture and fixtures
154,748
187,606
106.583
10,342
0.536
1 4a7
Due from Interest accrued but not collected
848
Int. reserve & for. ctf. of deposit..
71.443
1031:
571
Due from Reserve banks
*20,535,209
$20,330.930
523.795.
3 58
a
banks
Total
831.010
other
460,615
Due from
41,431
1930.
1929.
1928.
35.241
Cash,currency and specie
2,923
_2%
&
1M
%
4,21a
_
items
deposits
8,468
Rate
of
cash
paid
on
interest
Other
(9
Dividends paid in calendar year
Prepaid expenses
298,274
3,755:SAI
2,456,058
Foreign exchange future contracts
* Dividends paid in 1930, 20% Jan. 15 on capital of $1,000,000, 1007.
82,588,276 84,520.989 stock dividend Jan. 25 1930 and 8% July 15 on capital of $2,000.000.
Total
1548
FINANCIAL CHRONICLE
Charlestown Trust Co. (Boston).
ResourcesDec. 31 '30.
United States& Massachusetts bonds
$63,142
Other stocks and bonds
410.247
Loans on real estate
171,694
Time loans
190,991
Demand loans
168,424
Banking house and vaults
56,184
Due from banks
158,709
Cash on hand
57,265
Other resources
Total
31,276,656
LiabilitiesCapital stock
$200,000
Surplus fund
40,000
Undivided profits
7,825
Reserved for contingencies
14.000
Commercial deposits
1,011,464
Miscellaneous dividends unpaid
3.367
Total
$1,272.656
-Savings department (additional)
$2,650,742
Jamaica Plain Trust Co.(Boston).
Dec. 31 '29. Dec. 31 '28.
$63.142
$63,142
325,089
336,431
196.424
266,125
199,175
259,649
189,832
108,087
55,486
55,215
165,360
131,888
81,003
56,773
295
57
31,275,806 $1,277.367
$200,000
36,000
33,192
$200.000
30,000
3.620
1.006,313 1,040,263
301
3,485
$1,275,806 31.277.367
$2,522,608
Columbia Trust Co. (Boston).
Dec. 31 '30. Dec. 31'29. Dec. 31 '28.
$185.312
$260,162
$126,350
256,276
252,417
1,627:303
620
989,488
'861:417/ 2,968,258
97,986
117,136
64,828
58,663
85,637
299.850
199,816
241,274
$3,465,388 $3.453,124 $3.673,936
$100,000
$100.000
$100,000
360,126
347,004
304,765
3,005,262 3,006,120 3,269,171
$3.465,388 $3,453,124 $3,673,936
ResourcesUnited States bonds
Other stocks and bonds
Loans on real estate
Demand loans
Time loans
Cash in office
Cash in banks
Total
LiabilitiesCapital stock
Surplus and profits
Deposits
Total
[Vox.. 132.
*Day Trust Co. (Boston).
ResourcesDec. 31 '30. Dec. 31 '29.
Stocks and bonds
$4,197,425 $2,812,020
Loans and discounts
2,229,439 1,381,521
Cash and due from banks
1,234,556
457.111
Other resources
44.479
6,395
Total
$7.705,899 $4,657,047
LiabilitiesCapital stock
$2,500,000 $2,500,000
Surplus fund
265,000
257,000
Undivided profits,less expenses and interest
54,547
29,513
Deposits
4,848,082 1.860,134
Reserved for taxes
38,270 -._..
10,400
Total
$7,705,899 $4,657,047
•Began business in July 1929.
Exchange Trust Co.(Boston).
ResourcesDec. 31 '30. Dec. 31 '29. Dec. 31 '28.
Stocks and bonds
$5,783,015 $4,747,250 $5,715.810
Cash in offices and banks
1,837,921
2,085.226 2,098,688
Safe deposit vaults,turn. & fixtures
90.000
90,000
90,000
Demand loans
1,097,813 1,714,394
1,848,335
Customary liability on acceptances
7,364
101,207
192,072
Time loans
4,532,168 3.851,7303.588.832
Loans on real estate
7,520,134 7,950,275 7.932,845
Real estate owned
1.223,092 1.028.834
1,015.630
Total
$22,091,507 $21,568.916 $22,482,212
LiabilitiesCapital
31,500.000 $1,500.000 31.500.000
Surplus and guaranty fund
1,850.000 1,800.000 1,700,000
Profit and loss
200.261
182,886
167,702
Deposits
17,841,319 17,053,481 18,172.437
Rediscounts and bills payable
616.025
878.306
700,000
Acceptances executed
7,364
101,574
192,073
Other liabilities
103,538
52.669
Total
822,091,507 $21.568,916 322.482,212
1930.
1929.
1928.
Dividends paid in calendar year
$180,000
$180,000
$165,000
ResourcesDec. 31 '30. Dcc. 31 '29. Dec. 31 '28.
State of Massachusetts bonds
34,789,
$4,789
$4,789
Other stocks and bonds
1,941,586
1,843,780
1,847.261
Loans on real estate
2,727,220 2,681.260 2,569,213
53,166
43,366
Demand loans with collaterals
73,981
30,980
Other demand loans
150,892
118,204
458,206
494.303
609,527
Time loans with collateral
568.401
618,935
Other time loans
538,552
231
182
646
Overdrafts
58,800
57,000
Banking house
58.000
28,451
Safe deposit vaults, furn.and fixtures
31,634
32,601
242,482
237,248
212,494
Due from reserve banks
121,528
122,067
118,374
Cash, currency and specie
Total
LiabilitiesCapital stock
Surplus fund
Undivided profits
Reserve accounts
Deposits subject to demand
Certificates of deposit
Certified checks
Treasurer's checks
Dividends unpaid
Bills payable
Total liabilities
$6,241,858 $6,243,726 $6,219,354
$200,000
131,000
178.409
60,000
5,420,777
11,952
14,494
135
91
225,000
$200,000
116,000
204,490
30.000
5,535.107
4,700
2,947
89
393
150,000
$200,000
100,000
155,951
30,000
5.649,187
"Vga
130
75,000
36,241,858 36,243,726 $6,219,354
(The) Kidder Peabody Trust Co. (Boston).
Dec. 31 '30. Dec. 31 '29. Dec. 31 '28.
Resources$413.727
$375,000
$811,838
U. S. and Mass. bonds
953.468
519,566.
Other stocks and bonds
1,824.885 1,515.918
483,981
Demand loans with collateral
129,200
100
96.997
Other demand loans
595,354
969.285 1.033.653
Time loans with collateral
83,126
102,000
434,007
Other time loans
101.265
200,000
Bankers acceptances purchased
18.000
45,000
Real estate loans
210
110,375
Coupons for collection
4
54
Overdrafts
Banking house safe deposit vaults.
24,758
43,711
17,833
furniture and fixtures
21,794
Interest accrued
325
281
133
Revenue stamps
1,167,6331
657.593 1,554,167
Due from Reserve banks
72,116
70,280
Due from other banks
196.8941
175,955
175,063
Cash-Currency and specie
1,6691
Checks on other banks
957
167,034
968
Other assets
$4,429,761 $5,742,893 34,994,019
Total
Liabilities$500,000
$500,000
$500.000
Capital stock
100.000
100,000
200,000
Surplusfund
51,422
136,618
95.887
Undiv. prof., less exp., int. & taxes
24,708
15,000
Reserved for taxes
30.000
Reserve for contingencies
22,093
7,467
Due to other banks
59,280
U. S. Government deposits
Deposits (demand)
2,866,832 3,922,278 .3,330,925
Subject to check
326,335
450,913
For payment of coupons, lice
50,000
Certificates of deposit
3,000
25
Certified checks
83
447
Treasurer's checks
235,930
Deposits (time)
30,402
50,000
167,200
Certificates of deposit
518.916
555.293
Open accounts
308,415 •
Corporate trust department
4.646
1,741
317
Other liabilities
$4,429,761 35.742.393 34.994,019
Total
*Lee, Higginson Trust Co. (Boston).
Dec. 31 '30. Dec. 31 '29. Dec. 31 '28.
Resources.887
$565,456.
U. S. and Massachusetts bonds
5.466,016 3,759,325 3,080.242
Other stocks and bonds
554,069 3,535,844 3.296,600
Demand loans with collateral
1,756,152 1,968,119 3,673,486
Time loans with collateral
680,350
838,486
1.178,161
Other time loans
200,000
400,000
*Harris Forbes Trust Co.(Boston).
300,000
Customers'liability acct acceptances85.824
97,902
55,380
AssetsDec. 31 '30. *Dec.28 '29. Int. accrued but not collected
86
250
285
stamps
Revenue
United States and Massachusetts bonds
$242,991
$147,078 Due from Reserve banks
963,473
994,035
2.535,509
Other stocks and bonds
914,501
245,082 Due from other banks
426,410
205,383
2,959,584
Demand loans with collateral
,
[457041
319,768
368,191
384,563
Other demand loans
1,511,835
175 Cash
167,969
789,370
991,161
Checks on other banks
Time loans with collateral
935,096 Other
473
1,476
items
cash
Other time loans
1
12,000 Other assets
103,322
112,024
68,424
Bankers' acceptances purchased or discounted---199,950
OvIrdrafts
6,718
$16,900,882 $13,552,591 $13,457,890
Total
Customers'liability on letters of credit & accept
14,668
11,800
Safe deposit vaults,furniture and fixtures
Liabilities5,376
$500,000
$500,000
$500,000
Revenue stamps
36 Capital stock
500,000
500,000
Due from Reserve banks
500,000
Surplus fund
Due from other banks
1,624,026
1522,13g1 Undivided profits, less expenses.in82,647
202.647
Cash, currency and specie
267,932
terest and taxes paid
84,608
40,000
89,384
Other cash items
82,825
I
795 Reserve for taxes
25,397
,699
14
prepaid
61,403
31,033
Other assets, coupons
9.002 Reserved for interest
536,052
808,936
Due to other banks
1,007,719
163,885
$4.369,424 $2,666,729 U. S. Government deposits
Total
61,450
LiabilitiesDeposits (demand)
$500,000
8,435,423 8,788,257 6.804.404
Capital stock
Subject to check
$500,000
7,766
49,905
100,000
For payment of coupons. &c
45,770
Surplus fund
100,000
122,500
1,085.000
31,548
Undivided profits,less exp.,int, and taxes paid
Certificates of deposit
18,880
1,435
20.5'38
27,020
Due to other banks
Certified checks
203,639
414,443
73,094
22,003
Treasurer's checks
Deposits (demand)869,840 1,436,095
3,358,695
Subject to check
Certificates of deposit (time)
1,752,670
930,219
951,376 2,698,437
3,720,843
Open accounts (time)
For payment of coupons, &c
40,910
352
869
724
Certificates of deposit
31.517 Sinking funds
200,000
300,000
400,000
Treasurer's checks
5 Acceptances executed acct. customers
68,362
193,833
deposit
170,897
certificates
of
Deposits (time),
7,008 Other liabilities
14.668
Acceptances executed for customers
11,800
316.900,882 313,552,591 313,457,890
Total
2,365
Other liabilities
1
54.369,424 52.666.729
Total
* Began business Jan. 2 1928.
•Company began business June 1 1929.
New England Trust Co. (Boston).
Industrial Bank & Trust Co.(Boston).
ResourcesStocks and bonds
Loans on real estate
Demand and time loans
Furniture,fixtures and vault
Due from banks
Cash
Other resources
Total
LiabilitiesCapital stock
Surplus fund
Undivided profits
Deposits
Uncompleted loans
Bills and accounts payable
Other liabWties
Total
Dec. 31 '30.
$402,318
868,385
1,181.271
52,365
105,711
46,601
143,328
$2.799,979
$200,000
29,500
7.426
2,395,267
____
Dec. 31 '29. Dec. 31 '28.
$407,913
$509,631
1 2,175,374
983.757
f
715,389
60,815
42,907
196,600
119,667
59,520
69,642
217,255
32,910.344 32.668,127
$200,000
24,500
32,477
2,521.800
162,000
130,000
5.786
1.567
32.799,979 32,910,344
ResourcesStocks and bonds
Real estate
Demand and time loans
Cash in bank and office
Jther assets
Total
LiabilitiesCapital stock
4iirplus
profits
$200,000 Undivided
k(served for taxes
20,000 Reserved
contingencies
for
20,874
osits
2,296,091 Dep
Bills payable
60,051 Discount
collected not earned
70,000 Other liabilities
1,111
Total
32.668.127
Dec. 31 '35. Dec. 31 '29.13ec. 31 '28.
$7,527,117 $2,909.680 $2,783,956
2,007,457 2,034,483 1,855.720
21,186,764 32,764,601 19,309,084
6.691.058 7,296,757 5,728.830
100,266
152,677
531.352
$29,777,856
$445,536,873
337.565.073
$1,200,000 $1.200,000 31,000,000
2,800.000 2,800.000 2,000,000
864,877
1,149,418 1,130,378
60,322
270,375
127,566
200,000
31.830,201 39.790,225 25,576.044
100,000.
150,000
200,000
160,525
145.895
107,888
16,088
$337,565,073 $45,536,873 329,777.856
Fins. 28 1931.]
Revere Trust Co. (Revere, Mass.).
Dec. 31 '30. Dec. 31 '29. Dec. 31'28.
Re301.11T43$15.203
$15.203
U. S. and State of Mass. bonds
$369,095(
Other stocks and bonds
113.630
158.303
122.092
131.380
Loans on real estate
92.439
43,926
935,146
Demand loans with collateral
83,054
61.020
Time loans with collateral
69.293
36,983
Other demand loans
409,049
294.129
262.917
Other time loans
10.000
10,000
9,000
Safe dep. vaults,furniture & fixtures.114,081(
24,290
44.977
Due from reserve banks
37.282
27.356
Cash and cash items
867
4.827
Other assets
1
$1.836,371
Total
LtubiUties$200,000
Capital stock
Surplusfund
125.756
Undlv prof.,lessexp.,int.&taxes paid
(demand)ubject to check
'
United States Government
Certificates of deposit
1.445,355
Certified checks
Treasurer's checks
Deposits(time)Ctfs. dep. not pay. within 30 daysBills payable
Notes and bills re-discounted
65,260
Dr
Total
$1,836,371
$897.026
*762.145
$200.000
50.000
40,275
3100.000
30,300
33.466
454,786
496,959
15.000
1.979
5,765
5.000
1.329
5.891
10,621
60,000
58,600
64,200
$897.16
$762,145
25.000
Stabile Bank & Trust Co.(Boston).
ResourcesCash and due from banks
Loans and discounts
Securities
Foreign department
Furniture, fixtures and vaults
Other assets
1549
FINANCIAL CHRONICLE
Dec. 31 '30 Dec. 31 '29.
$142,638
859.484
570.935
667.352
718,665
776,085
118.514
215,107
15,000
16,151
13,484
33.798
State Street Trust Co.(Boston)(Concluded).
Jan. 2'31. Jan. 2'30. Jan.2 29.
LiabilitiesCapital stock
$3.000,000 $3.0 ,000 $3.000.000
Surplus and undivided profits
4.110,090 4.280.944 3.900.931
Reserve for taxes, &c
170.769
122.224
303,911
Acceptances
148,437 1,033.628 2.812.734
Acceptances of other banks end.& sold
377.920 1.596.967
Acceptances and letters of credit
Issued and guaranteed
456,641
523,183 1.166,631
Deposits
62,165,519 62,036,671 61.652.168
251,632
Unearned income
218,197
238.970
Commercial paper rediscounted
950,000
Total
*70.269,653 871.765.227 875.453.288
United States Trust Co. (Boston).
Dec. 31 '30. Jan. 1 '30. Dec. 31 '28.
Resources$1,450,306 $1,942,997$370,000
U.S. and State of Mass. bonds
9,273,456 10,237.999 9,545.132
Other stocks and bonds
5,619.3301 12.544,805i
8 1,0 0.137
Loans on real estate
4,570,355j
4.856.636
Demand and time loans
1 1.982.669 2.681.973 1,762.752
Due from banks
Cash on hand
1 1.984.188
32,440
42.080
85.441
Other assets
Total
LiabilitiesCapital stock
Surplus
Undivided profits
Deposits
Due Federal Reserve Bank
Other liabilities
Total
$22.958.557 827.449.854 319.684.286
$2,500,000 $2,500,000 $2.500.000
3,000.000 3,000.000 3.000.000
801.171
893,308
519,430
16.565.182 20.781,603 13.658.509
325.0001
6.347
42.0801
66
822.958.557 827.449.854 319.684.286
Winthrop Trust Co. (Winthrop, Mass.).
Dec. 31 '30. Dec. 31 '29. Dec. 31 '28.
Resources-$359,847
$308,133
$302,302
U.S.and State of Mass. bonds
654.533
2021
Other stocks and bonds53
401.199
538.372
138:379
Demand loans with collateral
56.346
52,990
71.400
Other demand loans
79.500
25.623
278.342
Time loans with collateral
16,073
22,603
12.509
Other time loans
1.771.478 1,671.910 1,530.848
Loans on real estate
30,000
25,000
Banking house and vaults
25.000
Total------------------------------------- $1,579.236 $1,767,977' Due from banks
126.598
136,678
138.098
41.252
39,320
42,334
Cash, currency and specie
38
Other
assets
State Street Trust Co. (Boston).
Resources83.479494 83.364,680 83.296.196
Jan.2'31. Jan. 2 '30. Jan. 2 '29.
Total
Loans on real estate
1835,517.442 830.931.817 $29.151,965
Time loans
LiabilitiesDemand loans
3100.000
15,870,949 21,659.747 22.669.543 Capital stock
8100,000
8100.000
Investments
2,247,587 1,129.872
100.000
125,000
1.792.308 Surplusfund
125,000
Due from Federal Reserve Bank
7,368,024 7,009.464 6,853,453 Undivided profits
51.292
61,191
56.611
Clash In office and banks
7,324,798 7.885,603 8,201,890 Deposits
2,842,096 2,746,799 2,723,715
Real estate and safe deposit vaults- 1,031,410 1,052,67
1.558
1.064,886 Certified checks
567
2,217
Interest & rent accrued, not collected
157.622
95,510
65.835
4.453
191.782 Treasurers' checks
63,587
Customers' liability on account ao2.980
United States Government deposits_
ceptanms and letters of credit
813.933 1,560,506 3,930.404 Due to banks and bankers
217.629
229.840
315.072
377,920 1,596,967 Reserved for taxes and interest
Acceptances ofother banks end.& sold
31,215
33.187
40.626
Total
370.269.653 $71,765,227 *75.453,288
33.479,594 83.364.680 13.296.196
Total
$1.579.236 $1.767.977
Total _
Liabiliais=-------------------------------$250,000
Capital
$250,000
125,000
Surplus-------125.000
21,261
Undivided profits85,872
180,409
Foreign department
246,363
Deposits
1.002,566 1.066.742
PHILADELPHIA COMPANIES
*Adelphia Bank & Trust Co.(Philadelphia).
Dec.31'30. Dec.31'29.
R4SOUSTEW-.
$9,875$79,875
United States bonds
110,252
707.965
Other stocks and bonds
91,500
Loans on mortgages
917
617.954 1,584,332
Demand loans with collateral
1,089,312 1.062.523
Other demand and time loans
155
34
Overdrafts
39.834
Customers liability under letters of credit and ac
7.684
Interest accrued but not collected
248.574
Due from reserve banks
161,645
Cash
68.458
60,407
Other assets
4.334
60.873
Total
$2,708.982 53.297.521
LiabilitiesCapital stock
$828,330 $826,020
Surplus fund
619,518
621,248
Undivided profits leas expenses, Interest and taxes
211,434
196,060
Deposits(demandlSubject to chec
824,285 1,195.633
Certificates of deposit
248.771
49,353
Savings funds
173.205
186,057
Dividends unpaid
150
Reserved for rent, taxes and accrued Interest
16.423
5.588
Other liabilities
78
4,350
Total
82,708,982 83,297.521
• Began business June 3 1929.
*Bence d'Italia 8c Trust Co. (Philadelphia) COnel.
Dec. 31 '30. Dec. 31 '29.
LiabilitiesCapital stock
$125.000
$125,000
Surplusfund
75,000
75.000
1.318
Undivided profits,less expenses,interest and taxes
2,000
Due to other banks
4.167
64.721
Demand deposits
50,149
Time deposits (savings fund, &c.)
377.838
278,597
Banca Commerciale Italiana (Rome)
6,212
Italian lire bonds
701
Dividends unpaid
2.500
2.500
Other liabilities
585
863
Total
•Began business, Nov. 1 1929.
$541,022
$651,129
Broad Street Trust Co. (Philadelphia).
ResourcesDec. 31 '30. Dec. 31 '29. Dec.31 '28.
Cash, specie and notes
1 $445,013 } $346.2351 $114.493
Due from approved
362.618
1
reserve agents- k
Due from banks
275,000
Notes purchased
984.072
Loans secured by bonds & mortgages. I 1,842,458 } 1.875.9851
438,612
Loans on collateral
1
475.875
.
I
Building and loan paper
366.300
Bonds and investments
gig
856,650
926.293
381.500
& judgments ofrecord....
371,000
Mortgaes
34,845
Furniture anti fixtures
34,031
I 859.841
349,092
Banking house and other real estate.. l
791,299
*Banca Commerciale Italiana Trust Co.(Philadelphia). Miscellaneous resources
153
ResourcesDec. 31 '30. *Dec. 31 '29.
Total
$4.285,700 84.439,365
84.719.758
Stocks and bonds
8611,597
8236.873
Liabilities-Demand loans with collateral
565,787
1,306,578
81.000.000 *1,000.000
Capital
stock
$1.000.000
Other time loans and discounts
119,344
28,333 Surplus and undivided profits
582.639
574,362
585.081
Customers'liability under letters of credit & accep243.229
12,329
I 1.614.333
Deposits
subject
to
check
Safe deposit vaults, furniture and fixtures
14.152
1 Certified checks
9.480
I 2,684,444 1 2.158,765
Interest accrued but not collected
26,443
8.766 Treasurer's checks
24.487
Cash and due from reserve banks
833,289
192,321 Special time deposits
1.155.562
51.911
51,184
Reserve for depredation, arC
49,726
Total
$2,413,841 $1.785,201 Mortgage
400,000
400,000
on banking house
Liabilities100.000
payable
Capital stock
$1,000,000 $1,000,000 Bills
662
1.680
Other liabillties, dividends unpaid507
Surplus fund
500.000
500,000
Undivided profits, less expenses,int. & taxes paid_
40,000
40,000
Total
$4.719,758 84.285.700 $4.439.365
Deposits
611,237
229.591
Letters of credit and acceptances
243,229
12,329
Reserved for rent, taxes & accrued interest, &c_ _ 19.375
3.281
Central Trust & Savings Co.(Philadelphia).
Total
$2,413,841 81.785,201
Dec.31 '30. Dec. 31 '29. Dec.31'28.
ResourcesStock
81.183,073 $1,074,170 $1.185.733
and
business
bond investments
Nov. 1 1929.
* Began
Commercial & other paper purchased 4,244,537 6.039.841
8.389.593
5,172.145 5,689,722 3.388.461
Amount
collaterals
loaned
on
*Bence d'Italia & Trust Co. (Philadelphia).
846.019
992,503
Real estate,furniture and fixtures.543.828
591.839
475.346
Dec. 31 •30. Dec.31 '29. Cash on hand
Resources593.280
1.275.980
$30,800 Cash on deposit
680.846
1.865.163
331,682
U.S. bonds
bonds
127.042
81,926
Other stocks and
35,670
56,785
75,860 Kiscellaneous
Mortgage and judgments of record
271.263
311,156
312,830.376 $15.644.613 316.001.728
Total
Demand loans with collateral
14,210
34,430
Commercial and other paper purchased
Liabilities-29.821
29,149
$1,000,000 $1,000,000 81,000.000
Overdrafts
1.910 Capital stock
1,800,000
1.800.000
1,700.000
22,994
Office building furniture and fixtures
1,839 Surplus fund
116.150
171.773
63,840
160,799
Real estate by forceclosure, &c
85,100 Undivided profits
banks
Deposita
7,408.555
reserve
11.419,538
from
41.805
Due
13,102.169
38.027 Bills
2.261.884 1,150,000
payatde
3,293
Cash,currency and specie
12.917
243,787
103.302
1.022
Other assets
38.760
2.788 Other liabilities
Due from banks,excluding reserve
4.307
14.858
812.830,376 815,644,613 816.001.728
Total
Total
$541,022
$651.129 Trust department (additional)
$10,040,035 39.764.865 39.491.945
...4;2
1550
FINANCIAL CHRONICLE
Chestnut Hill Title & Trust Co. (Philadelphia).
Resources
Cash specie and notes
Due trom approved reserve agents
Legal reserve securities at par
Commercial paper purchased
Loans upon collateral
Bonds and stocks
Mortgage and judgments of record
Office building and lot
Other real estate
Furniture and fixtures
Other assets
Dec. 31 '30. Dec. 31 '29. Dec. 31 '28.
$68,781
$49,622
$67.021
81,577
49.59674.679
47.613
46,500
46.500
401.6471
436.887
846.689
639.7091
499,385
429.944
420.474
473.713
211.900
354.564
292.225
56.310
56,319
56.310
74,674
70.530
76,420
20,434
19,055
16.014
1.408
22.472
21.434
[VoL. 132.
*County Trust Co. (Philadelphia).
Dec. 31 '30. Dec. 31 '29.
Resources___- $967,123 $1,186,899
Cash on hand and on deposit
3,830.980 4,420,952
Loans and discounts
2,913.832 2,949,962
Bonds, stocks, &c
Bonds, mtges. and judgments of record owned_ _ _ 1.672,802 2,176.769
442,979
425,642
Office building and loft
247,226
452.949
Other real estate
73,378
112.509
Furniture and fixtures
35,660
35,320
Other assets not included In above
510.411,157 811.533,825
Total
Liabilities5937.750
$812,750
Capital stock
1,012.250
862.250
$2.035,505 52.155.562 51,838,216 Surplus fund
Total
126.038
103,322
LiabilitiesUndivided profits
20,961
251.654
5125,000 Reserve for interest, taxes and expenses
5250.000
$250,000
Capital stock
50,000 Demand deposits
175.000
3,292,103 3,761,467
175,000
Surplusfund
4,340,582 4,618,107
14.362 Time deposits
21,718
31,253
Undivided profits
1.500 Bills payable
1.500
728,500 1.020,000
5,000
Reserve for depreciation
37,252
19.996
665.102 Other liabilities
635.227
512,177
Demand deposits
879.445
817,104
809,344
Time deposits
102.512
250.000
110.411,157 $11,533,825
245,000
Bills payable
Total
5.013
4,598.266 4.280,216
7,731
Other liabilities
Trust department (additional)
Co..
$2.035,505 52.155.662 $1,837,216
* Consolidation as of May 27 1929 of the Fox Chase Bank & Trust 1930
Total
Co.
Merged Sept. 2
Trust
Tacony
the
and
Co.
Holmasbury Trust
& Trust Co., Philadelphia. Above stateBank
with
Tacony
Northeast
Co.
(Philadelphia).
Trust
&
Bank
*(The) City National
ments for all companies for both periods.
*Dec. 31 '30. *Dec.31 '29. *Dec.31 '28.
Resources85,608,3411 $8,813,110 $6,913,785
Loans and discount
Fidelity-Philadelphia Trust Co. (Philadelphia).
1,788,0081
Bonds and stocks
Dec. 31 '30. Dec. 31 29. Dee 31 '28.
Resources860.000
725
296,558
Customers liability acct. acceptances
35.225,027 84,710.9571545,661.437
2.044.215 2.395,109 1,749,868 Bonds and mortgages owned
Cash and due from banks
35,358,662
Stocks
and
bonds
303.409
Banking house
58.678.497
54,136,279 64,989,087
213,835 Loans
359,375
83.2661
Furniture and fixtures
3,237.821 3,248.019 3,248.019
lot
and
building
office
estate,
Real
60,029
Other real estate
2,610.025 2,577,824
46,470 Furniture and fixtures
43,353
42.793
Other resources
447,370
370.803
299,552
Cust.flab. on aceep. & let, of credit.-536.915)
10,219
Cash
hand
59.783,958
on
$11.907,505
$9,930,786
Total
14.550,182
6,577.129
7,972,173
agents
Due from approved reserve
Liabilities4,229.556 3 864 101 1
51.125,000 $1,275.000 $1,125,000 Due from other banks
Capital
3,411.950 5,342.6691
1,000,0001 1,342.9201 1,000,000 Exchanges for clearing house
Surplus
1,427,962 6.138.774 1 6.915,276
186,810 Miscellaneous
1
219.3441
Undivided profits
2,500
27,785
43,305
Reserves
122,864,729 135,811,271
$145309054
Total
Due to banks including certified and
1,310,0101
Liabilitiescash checks
$6,700.000 $6.700,000
56,700,000
6,246,594
7.806.192
Capital
stock
3,772,179
Demand deposits
26,430,446 26.279.021 25,572,180
2,233,067)
Surplus and profits
Time deposits
109,535.775 81.129.446 94,160,960
340,000 Deposits
200,000 1,100,000
BIBS payable
1,400.001) 3,000,000
860.000 Bills payable
296,558
725
Acceptances
447.370
299.552
370.803
23,054 Letters of credit Issued
59.050
27,156
Other liabilities
2.343,282
.1
Other liabilities, accrued taxes
59.930,786 511.907,505 89.783,958
Total
$145309054 122,864,729 135,811,371
Total
* City National Bank & Trust Co. began business Feb. 25 1928. On
5893326800 848,948,460 710,681,258
Nov. 25 1930 consolidated with the Woodland Bank & Trust Co. (incor- Trust department (additional)
porated on March 17 1930) under name of City National Bank & Trust Co.
(Philadelphia).
Pennsylvania
Finance Co. of
Above statements are results of both companies for Dec.311930 and 1929.
Dec. 31 '30. Dec. 31 '29. Dec. 31 '28.
.Resouras-531,070
545,040
8541,302
Columbus Title & Trust Co. (Philadelphia).
Cash on hand
359.135
Dec. 31 '30. Dec. 31 '29. Dec. 31 '28. Due from banks,&c
Resources263.45 40.200
$76,861 Commercial & other paper owned_ __ _ 1,126,256 1,966.541
$65.022
$92,745
Cash, specie and notes
1,394,095
80.920
97,854 Loans on collateral
03.276
Due from approved reserve agents
5,630,212 5,280.097 3,981,265
Stocks, bonds,&c
9,666
Due from banks, trust companies, ilic..
710.700
835.700
675,700
60.546
64.081 Mortgages
44.893
Legal reserve securities
3,837.904 3,321.623 4,503.422
169.708 Real estate,turn.& fixtures
155.1251
143,232
Loans on call
31.459
27,038
96,931
33,5241
Other assets
31.256
Commercial paper purchased
576,993
635,524
280.818
Loans on collateral
$10,955,843
$11.836.599
511,908,305
327.320
Total
327.414
291,709
Loans on bonds and mortgages
Liabilities-541.883
554,814
656.474
Bonds and stocks
$2,500,000 52,500,000 52.500,000
403,566 Capital stock
340 109
309,052
Judgments
8,005,696 7,734.162 6,716.781
58.367
40,691 Surplus & undiv. prof
65,255
Furniture & fixtures and real estate738,432
799,005
749,985
&c
taxes,
Int..
deprec..
for
27,234
Res.
26,702
12,240
Other resources
680,694
695,476
544,663
Deposits
100.080
100.000
100.000
$2,030,616 82.337,973 52.326,285 Dividends unpaid
Total
219.856
7.956
7,961
Miscellaneous liabilities
Liabilities5125,000
$125,000
5125.000
Capital stock
$11,908,305 311,836.599 310,955.843
135,000
125,000
125.000
Total
Surplusfund
23.803
25.372
48,925
Undivided profits
25,839
17,944
47.356
Reserve for dep., int.. taxes, &c
Frankford Trust Co.(Philadelphia).
300,901
425.616
542.850
Demand deposits
Dec. 31 '30. Dec. 31 '29. Dec. 31 '28.
1,194,368 1,570,620 1.477.554
ResourcesTime deposits
$1.424,586 51.864,846 51.541,295
16,973
214,188
12,565 Real estate mortgages
Other liabilities
4.839,112
4,612,716 4.730,404
Stocks and bonds
3.488,934 4,314.350 3.824,748
$2,030,616 $2,337,973 82,326,285 Loans on collateral
Total
1.959.827
2,271.445
2,198,444
securities
personal
on
Loans
368.000
454.305
587,928
Real estate
Continental-Equitable Title & Tr. Co. (Philadelphia). Cash
618,495
308.309
702,449
band and reserve bonds
on
558.051
613.885
Dec. 31 '30. Dec. 31 '29. Dec. 31 '28. Cash on deposit
527,213
R4SOUTCCS59,942
71.917
52.424,310 53,097.800 53.725.150 Other assets(Incl. vault.fern.& fist.)
58,372
Real estate mortgages
4,548,999 4.244.680 6,240.085
Stocks and bonds
813.769.472
814.629.551
$13.600,642
12,997,389
11,911,113
Total
discounts
11,966,506
Loans and
2.705.253 1,863.447
2,364,581
LiabilitiesCash on hand and in banks
5500.000
$500.000
201 l.8
877.670 Capital stock
$500,000
842,584
Other assets
1.905.000
1,987,000 1.980.000
and reserve fund
Surplus
523.246,280
322.091,587
324.172.858
286.207
Total
357,992
441,757
profits
Undivided
LiabilitiesOen. dep. payable on demand & time 10,293,863 11,088,059 10,970,100
31.0,10,000 51.000.000 simoonoo Other
108,165
705.500
Capital stock
378,022
liabilities
2,500,000
2,500.000
2.000.000
Surplus fund
984.059
518,893
542.406
513,769,472
314,629.551
Undivided waits
$13,600,642
Total
9,379,155 9.841.7701 18,639,837 Trust
Commercial deposits
7.062.900 36.728.561 55.617.730
department (additional)
7.077.785 7.084.2581
Savings deposits
6.901
7,264
6.979
unpaid
Dividends
Franklin
(Philadelphia).
Trust
Co.
1,050.000
1,300.000
1.150,000
Bills payable
683.351
458,775 1.279,292
Dec. 31 '30. Dec. 31 '29.Dec. 31 '28.
Other liabilities
Resources522,091,587 823,246.280 324.172.858 Bonds and investments
1519,708,379 317,071,3091 54.221,959
Total
1 19,155,346
bonds
Trust department (additional). _ . 518,333,483 317.032,052 515.783.812 Stocks and discounts
20,512,747 27.473.502 22,846,130
Title & Trust Co. (Philadelphia, Pa). Loans and
History.-Continental-Equitable
1.367,432
16.569.960
1
3,300,383
of
consolidation
hand
ass
Continentalon
1912
16
Cash
Feb.
Pennsylvania
Incorporated in
Trust Co. Shareholders of Continental Cash on deposit
1 177,878 3,081,274
Title 8‘ Trust Co. and Equitable
191,868
one
of
share
received
Continentalestate
Real
211898)
Feb.
(incorp.
Title & Trust Co.
300,681
shares held: shareholders of the Accrued interest
Equitable Title & Trust Co. for each17two
} 284.583
220.975
460.8861
1889) exchanged their stock on a Furniture and fixtures
Equitable Trust Co. (Incorp. Dec.
373.860
1
assets
Other
share-for-share basis.
$44,298,641 $51.753,535 551.266,975
Total
Comparative Income Account-Years Ended Dec. 31.
Liabilities
1929.a
1928.
1930.
33,000,000 53.000.000 32.548.000
stock paid in
5781.654
5284.249 Capital and
3329.211
7.954.792 7.874.639 6.350.753
undivided profits
Net profits
Surplus
215.000
180.000
225.000
381
Dividends unpaid
Dividends
500.000
27,266,430 37.061.763 37.810.089
De
sits
Surplus
125.000
55,000 Bil Pi payable
2.550.000
5,800,000
3,500.000
Reserves
108,723
303.659
275,270
Reserved for deprec'n,int., tax & exp.
558,346
549.249 Subscriptions
1,808.000
$98 211
to additional capital stk.
Surplus for year*
$3.90
$1.42
$1.81
91.029
13.474
2,149
b
share_
Earned per
27.52%
63.32% Other liabilities
69 61%
Dividends to profits
$44.298,641 851.753.535 551,266.975
Total
$19.1h
$17.71
100.06
Book value per share
2.98
2.54
3.01
Surplus and undivided profits to $1
16.92
18.65
16.45
Germantown Trust Co. (Philadelphia).
Deposits to $1 capital
4.25
5.26
4.09
and
surplus
capital,
Deposits to $1 of
Dec. 31 '30. Dec. 31 '29. Dec. 31 '28.
Resourcesends Feb. 28) Cash on hand,due from banks. &c--- 31,762,014 81.862,413 52,137.068
After surplus adjustments. a Estimated (fiscal year
9.801.546
11,939,697 11,869.236
Loans on collateral
b Based on $5 par shares.
2,818,400
2,621.786 2,720,000 12,260.771
outstanding, 51,000,000; par Loans on bonds and mortgages
Capital stock: Authorized. $1,000,000;
9,756.774
each
9,076,652
for
Issued
old
shares
new
Stocks, bonds, &c
462.256
$5 (changed from $50 Dec. 27 1928: ten
538.315
473,104
642.
1930,
paper
31
Commercial
Dec.
stockholders,
of
share). Number
1,130.060
(since 1911): 1912 to 1919 Real estate, furniture and fixtures- 1,919,472 1,175.171
Dividends paid per share on $50 par shares
283.750
240.581
298,947
1924, $8: 1925 to 1928 Other assets
incl.. 34: 1920, $6.50: 1921. $6: 1922, 57: 1923 andand
12Ie2c. extra: 1930,
$28,091,672 $28.182.490 $28.893T851
118 regular and $1 extra: 1929, 95c. regular
Total
$1 regular and 1214c. extra. Dividends payable quarterly March 25, &c.,
Liabilities$1.400,000 51,400,000 51.120.000
to stockholders of record March 15, &c.
Capital stock
2,812,424
4,330,592 4,184.326
Surplus and profits
Price range 1930. 1929.• 1928. al927. 1926. 1925. 1924. 1923. 1922.
141
201
190
22.361.080 22.508364 24.961,427
241
258
292
Deposits
High
47
375
40
102
175
175
207
2621( 233
Low
40
341
26
528.091,672 328,182,490 528,893.851
Total
•Based on $5 par. a Based on 850 pan
Gimbel Bros. Bank & Trust Co. (Philadelphia).
ReSOUITC3--
Cash, specie and notes
Due from approved reserve agents
Due from other banks, tr. cos., &c
Legal reserve securities at par
Nickels and cents
Cash items
Exchanges for Clearing House
Time loans with collateral
Call loans with collateral
Bonds and stocks
Bonds and mortgage owned
Furniture and fixtures
Overdrafts
Other assets
Total
LiabilitiesCapital
Surplus fund
Undivided profits
Res.for int., taxes. exp.& deprec'n
Deposits subject to check
Demand savings department
Certified checks
Treasurer's checks
Savings fund deposits
Special time deposits
Other liabilities
Total
Trust department (additional)
1551
FINANCIAL CHRONICLE
FEB. 281931.]
Dec. 31 '30. Dec. 31 '29. Dec.31 '28.
$123.563
$121.257
$159,689
309.691
341.344
267,161
15.000
15,638
107,000
90,000
115,000
263
205
227
37
119
1.323
1.636
1,734
101,222
39,051
91,709
56.417
2,500
395.000
2,090,615 2.677,624 2,713,368
677.500
827.500
439,500
107.820
106,739
107.084
6
17
96,867
182,783
3,484,941
$3,448,431 34.287,901 37.932.818
$200,000
100,000
101.880
23.909
703.776
1,051
6.961
2,252,590
42,064
16,200
$3,448.431
$200.000
$200,000
100.000
100.000
118.046
92.141
18.636
16,551
777.152
897,588
1,793
1,366
110
10.046
5,960
2,974,123 3,169,877
40.254
33.481
45,585 3.417.130
$4,287.901 17,932.818
147.001
Hamilton Trust Co.(Philadelphia).
Dec. 31 '30. Dec. 31 '29. Dec. 31 '28.
Resources1 $119,801 $189,140 $228.824
Cash on hand
260.503
470.154
Checks and due from banks. &c-.......j
170.000
141.150
361,314
Reserve bonds
937.462
)
833.902
Commercial and other paper ownedi
1,518.154
1.200,657
2.065,262
collateral
te
Loans on
520,070
395,600
Loans on bonds and mortgages
769.453
574.279
629.432
Stocks, bonds. &c
658.400
476.000
882.700
Mortgages
324,339
405,309
338.075
Real estate, furniture and fixtures...
30,931
27.888
37,770
Other assets
Total
LiabilitiesCapital stock
T
Surplus fund
Undivided profits..
Reserve
Deposits
Dividends unpaid
Bills payable and rediscounts
Other liabilities
TotaL
$4,094.887 14,853,546 $5,416,136
$250,000
275,000
96,412
18.196
3,249,209
127
200.000
5,943
$250,000
275,000
91.019
7,739
4,205,131
56
$250.000
250.000
122.694
13,534
4,767,580
7
24,601
12.321
$4.094,887 34.853,546 15.416,136
*Industrial Trust Co. (Philadelphia).
*Dec. 31 '30. *Dec.31 '29. *Jan. 2 '29.
Resources12,479.965 $2,958,492 11,638.092
Cash and reserve
1 14,372,427 14.184,136 7.689.841
Loans on collateral
1.894,287
Commercial paper purchased
Bonds, mortgages and judgments-.. 2,542.279 2.429,652 1,884.554
5,720,131
8,412.924
*Guardian Bank 8c Trust Co.(Philadelphia).
5.305.855
Stocks, bonds. &c
712,522
954,186
727,240
Dec. 31 '30. Dec. 31 '29. Dec.31 '28.* Banking house, furniture and fixtures
Resources76,543
81,052
75.000
[347.444
$47.151 Customers'liability on letters ofcredit
Cash, specie and notes
258,393
522.680
415,595
4
145.408
204.947 Other resources
Due from approved reserve agents I $241,869
45,000
25,000
Legal reserve securities at par
325.918.361 329,541.122 $19,874,363
410
787
727
Total
Nickels and cents
'511,120
445,070
Comml paper purch.,upon one name
Liabilities41.571
142.250
Upon two or more names
$882,250 $1,281,818 $1,100,000
Capital stock
154,274
275,124 Surplus
1,010,005
Time loans with collateral
2,115,000
4,025,000 4,468.081
384,679
390.717 Undivided
Call loans with collateral
374.260
624,952
502,537
profits
57,541
29,000
Loans on call upon one name
143.451
302,233
Reserves
14,500
33,500 Regular and extra div. pay. Jan. 15Loanssecured by bonds & mortgages
80.000
119.000
93.472
231.866
20,725 Deposits
Bonds and stocks
18,181.776 20.886.395 15,115,280
Judgments owned
232,994
credit_
of
letters
and
Acceptances
1.000
37.946
Office building and lot
860.000
1,750.000 1,925.000
Bills payable
28.287
29.651 Other
Furniture and fixtures
86.372
235,878
41,571
liabilities
9,659
6.924
8,922
Book val. of legal res. sec. above par
16.795
15,695
Other resources not included in above
119.874.363
129.541,122
$25,918,361
Total
$13.708,835 113.072.076 39.647,235
$1,529,337 41.551,708 81.668,226 Trust funds(additional)
Total
Liabilities15 1929. Name
$300,000
$300,000
$300,000
Capital stock
* Consolidated with Fern Rock Trust Co. as of Feb.Consolidated
with
100,000
100,000
100,000 changed from Industrial Trust, Title & Savings Co.
Surplus fund
Northeastern
with
consolidated
56,703
1929;
51.336
55,549
15
pd
Oct.
taxes
Undivided profits,less exp.&
Textile National Bank as of
13,600
4.000 Title & Trust as of Nov. 13 1930. Above statement for Dec. 31 1929 and
8,090
Reserve for int., taxes & expenses.-704,185
889,815 1930 is combined statement for all the institutions. For Jan. 2 1929 for
Demand deposits-Dep.subj.to ch'k
8,900 the three trust companies only.
Demand certificates of deposits.70,000
786,801
75.000
Deposits Commonwealth of Penne
48.576
Deposits United States
Integrity Trust Co.(Philadelphia). Dec.31 29.
4,000
858
Certified checks
Dec. 31 30.
Resources8.086
59
Cashiers' or Treasurers' checks__ _
}$24.064.162 $7,179,359
Real
mortgages
estate
55,060
26,500
Time deposits, time ctfs. of deposit_
18,507,310
and
Stocks
bonds
5,943
277,452
36,226
Special time deposits
44,434,900 50,578.059
paper purchases
181,673
118.570 Loans and coll. & comm.
Time savings fund deposits
2,636.582 2.582,637
fixtures
and
furniture
estate,
Real
50.000
Bills payable on demand
8,215,735 8.304.725
1 942
1,534
6.962 Cash on hand and on deposit of credit
Other liabilities, not incl. in above_ _ _
948,723
1,836.255
liability on letters
$1,529,337 41,nal ati8 $1,668,226 Customers'
944,801
570,304
Total
Other assets, accrued interest
* Began business Aug. 1 1928.
$81,757,938 $889,045,614
Total
Girard Avenue Title & trust Co. (Philadelphia).
Liabilities$2,987.920 $3,377,920
31 '30. Dec. 31 '29. Dec.31 '28. Capital stock
-Dec.
Resources
14,000,000 13,600,000
$765,400
$969,081 Surplus fund
Real estate mortgagee
2,049.702
1,992.181
Undivided
788,928
profits
$632,828
892.094
Stocks and bonds
196,495 1,017,630
&c
taxes,
Reserved
interest,
for
49
59
8
.988
0.75
} 3,243,246 12.457,920 2.8
Loans on collawral
60.761.250 63.938.925
Deposits
1 409.971
paper
Commercial pap
112,031
90.235 Dividend Jan. 3
88,426
Real estate
3,741,000
166.492 Bills payable on demand
1 422,102 i 161,957
Cash on band
981.902
1,820,092
Letters of credit issued
1
211.006
288.218
Cash on deposit.
338.535
Other
liabilities
16,568
Reserve fund (ineligible)
23.191
22,928
69,505
Office building turn., fixt. and vault
$89,045,614
$81,757,938
Total
8.653
3.881
29,792
Miscellaneous
338,301,776 337,300,032
Trust department (additional)
34386.80 34.955.625 35.783.675
Total
Liabilities-*West Philadelphia Title & Trust consolidated with Integrity Trust Co.
$200.000
1200.000 as of Feb. 28 1929 and Columbia Ave. Trust Co. and Tenth National Bank
$200,000
Capital Stock
500.000 merged as of July 1 1929. Market Street Title & Trust Co. merged as of
500.000
500,000
Surplus fund
92.085 Feb. 28
129.599
140 037
Un ivided profits
1930. Above figures are combined results for all the companies for
2.515.459 all
I 3,211,484 2.211.448
Deposits, Keying fund
the periods.
1,532,292
1.949.737
General deposits. payableon demand i
350.000
525,000
332.613
Notes anti bills re discounted
Jefferson Title & Trust Co. (Philadelphia).
30,594
Acceptances and letters ofcredit issued
100,000
Bills payable
Dec.31 '30. Dec. 31 '29. Dec. 31 '28.
Resources1.692
1.394 Cash specie and notes
1.765
$61,916
Other liabilities
$58,545
$78,951
135.276
130.217
.955.625 -$5,783,675 Due from approved reserve agents..... 113,213
44,485,899 ITTotal
55.000
65.000
65.000
lreserve
securities
3865.145
$200.147
$174,185
Trust department (additional)
125.124
124.144
127,217
Commercial paper purchased
388.528
452.214
434,685
Loans on collateral
Girard Trust Co.(Philadelphia).
1,343.662
1,449.692 1,493.273
Dec. 31 '30. Dec. 31 '29. Dec.31 '28. Bonds and stocks
Resources211,100
165.300
166,850
$7.510,036 15.281,288 $5,695,283 Mortgages and judgmeuts of record
Cash and reserve
87.000
85.000
Office
85,000
fixtures
and
furniture
building,
Due from banks & clear, house exchs- 7,398,647 6.507.126
4.087.867 Other
14.477
40,593
45,508
resources
35,110,192 36.500.665 31.720.605
Loans
44,083.860 36.666.794 36.405.355
Securities
$2.422.082
52.614.286
$2.566,116
Total
2,880,050 2.880,050 2,880.050
Banking house
930.212
121.884
LiabilitiesOther real estate
181.835
$200,000
1200.000
5200.000
293.318
332,095
Customers,liability on letters ofcredit
288.121 Capital stock
130.000
150,000
150,000
57.571
36.505
Other resource&
4.563 Surplusfund
10.131
4.238
10,971
Undivided
profits
$98,281.597 $88.308,694 $81,263,679 Reserve
Total
1.000
10.000
8.000
for deprec., int.. taxes, ftLiabilities709.046
763.365
630,049
Demand
deposits
$4,000,000
$4,000,000 33.000,000
Capital stock
1,306.911
1.366,626
1,184,061
Time
deposits_ •
16,000.000 16.000.000 10.000.000
Surplus fund
57
35
unpaid
1.929,964 1.460.112
Undivided profits
2,873.810 Dividends
65.000
120,000
385,000
563,582
425,699
Reserve for taxes
290,650 Bills payable
75,193.839 61,845.684 62.111,097
$2,566,118 52,614.286 12.422.082
Deposits
Total
314.632
$10,558
400,000
400.000
Dividend
$13,450
2,300.000 Trust department additional
Due Federal Reserve Bank
2,400.000
332.095 4.030.316
Letters of credit issued
288.121
Bank & Trust Co.(Phila.).
Security
*Kensington
$98,281,597 588.308.694 385
26
1:3
Total
3:2
76
65
2
79
Dec.31 '30.*Dec. 31 '29 *Dec. 31 '28.
&Sources-Trust dept.. excl. of corp. trusts...-$813695,951 695.744.740 54
2.046,335 32.215,739 52,244.588
Real estate mortgages
Loans on collateral & personal secur_ 16,566,328 9.201.705 9.599.002
Haddington Title & Trust Co. (Philadelphia).
5,082.121 3,699,013 3.259.650
Stocks,
bonds,
&c
31 30. Dec 31 29. Dec. 31 '28.
-Dec.
1,316.498
Resources
1.385.207
1,953,174
on hand and on deposit
$1,077.190 11.128.656 11146.489 Cash
833.379
Bonds, stocks, &c
483.643
877,798
Banking
house
445.670
450,450
Mortgages
51,682
71,503
599.338
593.245. Other assets
Loans on collateral & bonds & mtges.- 1,056,138 1.223.818
1,249.239
$17.118,016
$17.043.593
$27,125,094
227,471
308.532
Commercial paper
Total
333.919
114,387
97.205
LiabilitiesCash on hand
127.952
$500,000
$500.000
$1,300,000
163.683
134.289
Cash on deposit
263.521 Capital stock
1,604,488
1.557.734
4.172.641
148.955
148,687
Office building. furniture & fixtures650.747 Surplus and undivided profits
75,000
250,000
56.932
123.056
126.077
estate
fund
Contingent
real
58.315
Other
19,340.290 14,278.420 14.863.724
43 (leg
48.643
44.784 Deposits
Other assets
56.784
143,000
55.000
payable
Dividends
31
Dec.
$3,383.332
$3.682.883 $33.968.210
Total
52.594
2,855
Reserve for taxes, &c
Liabilities550.000
1,735,000
Bills
payable
$150.000
$150.000
Capital stock
$150,000 Miscellaneous liabilities
780
181.308
10.203
240,136
251.208
Surplus and dividend profits
238,636
2,618,112 3,280.194 3.576.327
$27,125,094 517,118.016 $17.043,593
Deposits
Total
84
1.481
liabilities
Other
3,247
* Kensington Trust Co. and National Security Bank & Trust Co. con375,000
Bills payable
solidated on June 28 1930 under name of Kensington Security Bank &
$3,383.332 CLiim2,ss:4 $3.968.210 Trust Co. Above figures for Dec. 31 1930 are for the two institutions. For
Total
358,120
357,900
Trust department (additional)
$550,076 Dec. 31 1929 and 1928 for the Kensington Trust Co. alone.
1552
FINANCIAL CHRONICLE
Liberty Title & Trust Co. (Philadelphia).
Resources-Cash on hand
Due from banks, &c
Loans on collateral
Stocks, bonds. &c
Mortgages
Commercial paper purchased
Real estate, furniture and fixtures
Other resources
Total
LiabilitiesCapital stock
Surplus
Undivided profits
Deeits
Billspayable
Other liabilities
Total
Trust department (additional)
Total
Mortgage Segurity Trust Co. (Philadelphia).
Dec. 31' 30. Dec. 31 '29. Dec. 31 '28.
ResourcesDec. 31 '30. Dec. 31 '29. Dec. 31 '28.
$32.000
$44,066
$396,760 Cash, specie and notes
$286,339
$256,791
99,467
116,152
541,520 1,984,884 Due from approved reserve agents1,330,125
21.000
41,000
Legal
6,998,063
reserve
6,049.356
securities
at par
5,042,830
228.650
239.971
1,551.836 Time loans
1,459,762 1,587.495
297,960
492.858
934,999 Call loans
1,289,434 1.470,370
27,900
59.000
579,199 Loans on bonds and mortgages
1,012.671
887,811
305.622
275,782
25,698 Bonds and securities
24,998
103.036
216,400
233,000
Mortgages
19,508
18,968
124,968
124,969
Figures
Office building
9,336
8,527
Not
$10,388,757 $10,992,257 $12,471,439 Furniture and fixtures
85,700
97,664
Furnished
Other resources
6700,000
$1.000.000 $1,000.000
1,500,000 1,500.000 1.000.000
319,473
219,567
318,422
7,569,729 7,822,503 10,201,872
350,000
350.000
281
606
$10,388,757 $10,992,257 $12,471.439
$14,968,546 13,177.533 $11.300,159
Manayunk Trust Ce. (Philadelphia).
ResourcesReal estate mortgages
Stocks and bonds
Loans
Real estate and fixtures
Ca.sh on hand
Cash on deposit
Other assets
preL. 182.
Dec. 31 '30. Dec. 31 '29. Dec. 31 '28.
$555,120
$500,213
$572,533
1,997,794 2,212,443 2.230,319
1,623,672 1.689.454 1,555.570
173,430
203,007
157,238
113,090
136,838
} 432,7921
1
232,627
236,347
13.755
22.753
15,160
$4,780,231 $4,989,919 34,904,005
['fannies$250,000
$250.000
$250,000
Capital stock
700,000
700,000
600,000
Surplus fuad
67,171
60,896
99,848
Undivided profits
172,688
174,100
39.669
Reserve for deprec'n, int.. taxes, &c.
General deposits, payable on demand 1,355,284 1.441,783 1,576,697
1,807,310 2,005.164
1,975,411
Time deposits
350.000
425,000
350.000
Rills payable
3,113
7,641
12,380
Other liabilities
$4.780,231 $4,989,919 $4,904,005
Total
$2,098,845
$2,500,151
$1,963,475
Trust department (additional)
Total
LiabilitiesCapital stock
Surplusfund
Undivided profits
Demand deposits
Time deposits
Other liabilities
*1.712.989 $1,469,003
Total
Trust department (additional)
$1_,712,989 31.469,003
$19,254
$136.986
3300.000
92,500
18.359
519,728
612.052
170.350
$250.000
42,500
7,315
578.000
498,000
93,188
North City Trust Co. (Philadelphia.)
Dec. 31 '30. Dec. 31 '29. Dec. 31 '28.
Resources$22,527
$41,084
Cash, specie and notes
66,245
36,302
Due from approved reserve agents-36
497
$218,862
Nickels and cents
6,650
Cash items
5,000
3.000
Due from banking instit's (excl. res.)
49,775
309,775
Bills disc. on 1. 2 or more names_ 41,825
94,620
Time loans with collateral
596,900
478,102
1,549,940
Call loans with collateral
35,000
405,450
Loans secured by bond & mortgage_
15.168
362,931
Bonds
9.006
150.113
13,000
Furniture and fixtures
6,711
3,320
6,426
Other resources
$824,900
$1.922,235 $1,781,530
Total
Liabilities$500,000
3500.000
$500.000
Capital stock
210.000
290,000
90,000
Surplusfund
29,863
38.707
7
Undivided profits
542.732
573,670
221,090
Demand deposits
452,730
329,153
213,677
Time deposits
81.070
Due Federal Reserve Bank
105,800
Reserve for int., taxes and deprec126
50,000
Other liabilities
51,922,235 31.781,530
$824,900'
Total
Manheim Trust Co. (Philadelphia).
*Ninth Bank & Trust Co. (Philadelphia).
ResourcesDec. 31 '30. Dec. 31 '29. Dec. 31 '28.
$28.855
$50,929
$26,917
Cash on hand
Dec. 31 '30.*Dec.31 '29. *Dec.31 '28.
Resources66.072
trust
42.508
banks,
companies,
&c_
59,770
from
Due
$17.200,7351$28,852,649 *18,803.086
Loans and discounts
171.968
105,329 Investments
Commercial paper purchased
138,998
. I
282,489
233.874 Banking house, vault,&c
243.032
Loans on collateral
1,034.821
1,015.037
901,433
146,050
85,650 Interest accrued
81,500
Loans on call on one name
166,964
223.145
166,617
221.996
175.535 Due from banks
227,079
812,393
Bonds and stock
784,162
955.378
140.000
137.027 Clearing House exchanges
120,325
316,812
Mortgages and Judgments of record
282.043
271.137
170,686
158.302 Cash and reserve
179,230
1,858.332
Office building, furniture and fixtures
2.578.068
1,871,091
16,459
46,525
89.221 Customers' liability acct. acceptances
124.541
50,904
79.674
Other resources
1.333
Other
resources
$1,147,388 $1,249,525 $1,054.363
Total
$28,363,015 &33,985.994 *22,990,547
Total
LiabilitiesLiabilities$250,000
$250,000
$232,450 Capital stock
Capital stock
$1,375,000 $1,375,000 51,231.050
33,500
33,500
29.972 Surplus and profits
Surplus fund
3,269,055 3,260.969 2,406.191
6,568
15.434
150.678
307,633
14.627 Reserve for taxes, &c
Undivided profits
164,905
356,632
466.801
23.429
38,055
366.512 Discount unearned
33,964
Demand deposits
417.381
299,867
345.476 Deposits
22,937.312 26,498.788 19,000,786
Time deposits
66.459
200,821
65.327 Due Federal Reserve Bank
470,000 2,336.500
Other liabilities
124.541
79,674
50.904
$1.147.388 $1,249,575 $1.054.363 Acceptances & letters of credit issued_
Total
89.375
61.875
337.484
$38.736
$37.128 Dividend payable Jan. 12
Trust dept.(additional)
50.000
Bills payable
3,962
Other liabilities
*Media-Sixty-Ninth Street Trust Co. (Phila.).
Total
Trust department (additional)
$28,363,015 $33,985,994 322,990.547
$13,730,860 $11.389,833 59.396.442
Dec 31 '30.
National Bank and Ninth Bank & Trust Co. consolidated
$310,940 as*ofNorthern
Mar. 4 1929 under name of latter. Also merged with Fairhill Trust
533,814 Co. as
11 1929. Above statement for Dec. 31 1929 and 1930 is
of
June
42,313
for all companies. For Dec. 31 1928 for Fairhill Trust Co. and
4,289,389 result
Co. only.
3,642,193 Ninth Bank & Trust
1,541,040
127,508
Northern Central Trust Co. (Philadelphia).
124,946
46,789
Dec. 31 '30. Dec. 31 '29. Dec. 31 '28.
Resources70,896 Cash on hand
$188,696
$193,922
3255,721
371.928232,328
Cash on deposit
121.769
Total
$10.729,828 Commercial paper purchased
999,998
779.549
1.008,348
Loans on collateral
2,015,307 2,761,368 2,590,039
Liabilities68,806
Loans on call on one name
95,087
179,748
$375.000 Bonds, stocks. &c.
Capital stock
1,150,849 1,160.697
766,474
1.000.000 Mortgages _
Surplus
922.550
1,093,982 1,128,210
184,655 Office building and lot
Undivided profits
704.558
704.558
711,000
500.000 Furniture and fixtures
97.254
Bills payable
109,361
112,000
6,972 Other resources
41,890
Other liabilities
50,836
117,145
112,926
Reserves for notes
Total
8,550,275
$6.381.494 $7,566,117 36.726,367
Deposit
Liabilities3550.000
$10,729,828 Capital stock
$966,750
$965,250
Total
300,000
Surplus
922,875
fund
925,125
Pa.,
and
Sixty-Ninth
Media.
Street Ter- Undivided
•Media Title & Trust Co. of
103,754
131,915
137,681
profits
minal Title & Trust Co. consolidated as of May 11930.
Demand deposits
2,744,480
1,720,554 2,609,281
Saving fund deposits
2,118,814 2,856.503 2.942.739
27,505
Reserves
17,186
19,717
57.889
Other liabilities
495,384
60,576
Management Bank & Trust Co.
ResourcesCash in vaults
Due from reserve banks
Due from other banks
Loans
Bonds and stocks
Mortgages of record
Office building and lot
Furniture and fixtures
Vaults
Other resources
Mitten Men &
(Phila.).
Total
$6,381,494 L$7,566,117 $6,726,367
Dec. 31 '30. Dec. 31 '29. Dec. 31 '28.
$348,347
$295,155
$366.530
1,400,228 1,843.419 2,436.895
Northwestern Trust Co.(Philadelphia).
780,453
495.526
630,730
1,692,295 1.998,054 2,035,483
Dec. 31"30. Dec. 31 '29. Dec.31 '28.
Resources$452,109
2,092,689 3,928,910 4,318,435 Cash on hand
$266,570
$359,333
865,677
638,000 1375,000 Cash on deposit
200,000
516,833
815,473
2,552,307 3,171,226
4,834,938 4,535,036 4.125,426
1,304,500 Commercial paper purchased
6,534,123 5.634,111
1.482,637 2,054,334 2.034,669
8,369,489 Loans on collateral
1,850.221
1,641,395
1,701.050 1,734,650 2,075.400
1,276,018 Loans on bonds and mortgages
94,688
93,185
2,023,725 2,621,402 2.317,454
69,954 Stocks. bonds.&c
554.370
423,837
192.027 Mortages
2,326.400 2,280,300 2,024,900
347.000
367,713
347,875
Real estate, furniture and fixtures$17,682,758 $20,579,781 U2.175,961
Total
313,519,866 314,748,403 $14,242.635
Total
Liabilities• Liabilities$150,000
$3,500,000 53,500.000 $3,500.000 Capital
$200.000
$200,000
Capital stock
1,400.000
1,000,000 1,000,000
1,000,000 Surplus fund
2.500.000 2,500,000
Surplusfund
250,807
391,401 • 370,828 Undivided profits
374,722
181,972
199.760
Undivided profits
340.651
142,262
228,000
132,427 Res.for Int., tax & expenses
128,646
Reserve for interest and taxes
5,583,984
2.356,910 3,057.560 3.298,713 Demand deposits
3,798,635 4,709,029
Demand deposits
5,142,659 5,561,613 6,117,192
10.053,257 12,038,913 13,529,218 Savings fund deposits
Time deposits
400.000
49,187
202,265 Notes payable
1,669,600
1,300,000
38,221
Due to banks, trust companies, Stu-.
400,458
142,510 Reserve for contingencies
27,000
50,000
231,002
Other liabilities
$13,519,866 $14.748,403 $14,242,635
Total
Total
$17,682,758 $20,579,781 $22.175,961
$628,732
$647,285
3590,389
Trust department (additional)
$418,493
$1.529,431
$283.924 Trust department (additional)
Resources-Cash specie and notes
Due from approved reserve agents
Commercial paper
Time loans on collateral
Call loans on collateral
Call loans on collateral (brokers)
Character loans
Bonds and stocks
Bonds and mortgages owned
Furniture and fixtures
Other assets
FEB. 28 1931.1
FINANCIAL CHRONICLE
1553
Northern Trust Co.(Philadelphia).
Parkway Trust Co. (Philadelphia).
ResourcesDec. 31 '30. Dec. 31 '29. Dee.31'28.
•
Real estate mortgage loans
$3,528.870 12,824,450 $3.064.150
Bonds and investment securities.--1 8,184,957f 6.698.532 6,772.278
1
480 000
United States Govt.securities
623.100
Loa
5.522,437 7,047,755 7.121.680
207,998
Commercial paper
161,508
385,135
368.229
462,284
513,040
Real estate
Cash on hand and in bank
1.257,805 1,207.023 1.160,173
66,424
Other resources--accrued interest....
72.092
34,419
ResourcesDec. 31 '30. Dec. 31 '29. Dec. 31 '28.
Cash on hand
$83,653
$78,779
$1,383
Cash on deposit
154,125
151,196
341,688
Commercial paper purchased
791,814
755.386
1
Time loans on collateral
'.
209,405
Call loans on collateral
1,360,094
314,579
366,351
Loans on call on one or more names.70.910
47,050
I
Leans on bond and mortgage
68,300
53.800
Bonds,stocks, &c.
962,319
1.142,306
999,999
Mortgages and Judgments of record
15,854
34,154
25.0511
Furniture and fixtures
16,126
19.851
23,336
Customers liability on letters of credit
3,377
Other resources
17.670
19.304
17.427
Total
$2,718,511 $2,784,582 $2.771,434
LiabilitiesCapital stock
$250,000
3250.000
$250,000
Bumble fund
150.000
150.000
150.000
Undivided profits
83,897
79.932
71.076
Reserve
45,203
36.762
11.250
Demand deposits
1,136,189
1,236,254
1,297,481
Time deposits
715.977
829.167
781,648
31.594
Due to banking institutions
Acceptances and letters of credit
3.376
Bills payable
300,000
200.000
210.000
Other liabilities
2,275
2.467
9.980
Total
12.718,511 $2.784,582 $2,771.435
Trust department
$84,271
$92,287
$21.278
Total
LiabilitiesCapital stock
Surplus fund
Undivided profits
Deposits
Total
Trust department (additional)
519.426.633 118,994,466 119.343,210
3500,000
$500,000
$500,000
3,750,000 3,500,000 3.500.000
331.594
595,224
498,060
14,678,573 14,399,242 15.011,616
$19,426,633 $18,994,466 319,343.210
$42,735,897 $38.762.074 $33,505,478
North Philadelphia Trust Co. (Philadelphia).
ResourcesDec. 31 '30. Dec. 31 '29. Dec.31'28.
Stocks and bonds
n.337,539 $2,625,812 $2,571,027
Mortgagee
2,763,494 2.445,671
Amount loaned on collaterals
4,374,308 5,441,518
Amount loaned on personal securities
608.132
458,743
Cash on hand
316,332
1,029,418
344.503
Cash on deposit with banks
585.215
542,728
Real estate, furniture and fixtures
246,883
215,000
230,525
Other assets
6.652
2,252
4,219
Total
$10,588,609 311,524,395 $12,036,867
Liabilities$500,000
Capital stock
$500.000
$500,000
Surplus fund
1,527,464 1,300.000 1,200.000
212.918
Undivided profits
96.978
Reserve for interest and taxes
98.765
96.232
94,068
Title insurance reserve
2,847
68,654
Bills payable
100,000
Gen. dep. pay, on demand & time.-- 8,367,077 9,409,865 10.075.003
Total
$10,588,609 $11,524,395 $12,036,867
Tema department (additional)
$4.540.683 $4,229.487 $3.389.200
1
Olney Bank & Trust Co. (Philadelphia).
Resources-Dec. 31 '30. Dee. 31 '29. Dec. 31 '28.
Cash on hand
$366.684
1 $796,710{ $235,606
Due from approved reserve agents
520,848
398.291
Legal reserve securities
296 300
284 200
291.929
Commercial paper purchased
281.810
362,391
Loans on collateral
2,815,116 2,432.909 2.391.179
Loans on call on one or more names-955.508
767,270
856,415
Loans on bonds and mortgages
1.250.374
1,313.584
1.444,744
Bonds and stocks
1,406,359
1,506.331
1,833,769 1,578.735
Mortgages and judgments of record._ 1,774,671
Office building
334,298
334,654
) 679125(
Other real estate
273,328
141.402
77•37711
76,868
Furniture and fixtures
75.255
Other assets
205,416
102,116
144,830
Total
$8,700,554 110,152,497 39.753,951
Liabilities$300.000
Capital stock
$300,000
$250.000
700.000
Surplusfund_
700,000
400.000
160.541
176.546
Undivided profits
157.619
141,544
Reserve for deprec., int., taxes, &c
370,228
301,031
335,000
Loans payable
Demand deposits
)6,836,170( 3,109.295 3,115.522
5,689,315 5.504.741
Time deposits
6,111
51,802
Other liabilities
1,538
$8.700,554 $10,152,497 19,753.951
Total
Pennsylvania Warehousing & !Safe Deposit Co.(Phila.).
ReSOUST4S-
Cash on hand
Due from banks and bankers
Accrued storage charges
Loans & discounts
Investment securities owned
Real estate, furniture and fixtures.-Other assets
Dec. 31 '30. Dec. 31 '29. Dec.31 '28.
819.048
$23.865
$170.639
597.362
339,916
222,014
34.219
600,340
810,073
754,731
393.479
486,669
521,110
1,479.895
1,479.896
1.656,189
90.624
106,819
50.050
Total
LiabilitiesCapital stock
Surplus and undivided profit+,
Deposits
Reserve
Bills payable
Other liabilities
ResourcesDec. 31 '30. Dec. 31 '29. Dec. 31 '28.
Cash on hand
$22,340,347 $8.704,830 $9.990.307
Due from banks and bankers
38.248,665 51,101,718 41.933.101
Loans on collateral
116,688,877 116.373.085 98,199.161
Stocks, bonds, &c
161,580,605 123,928.872 35.449.501
Mortgages
1 6,906.210 6.561.143
Commercial paper purchased
23.205,303 37,666.196 28.689.272
Reserve fund for protec'n of trade bal. 7,512,977 6,971.935 9,798,318
Interest accrued
632,787
890.021
1.281,953
Furniture and fixtures
1.231,7661 2,793,532 2,745,487
Bank building
2,829,9621
Customers' liab, let, of crud. & accep. 2,659,849
Other assets
2.230.575 3,741,063 6,766.471
Total
3279,810,879$259.077,492$240.765,518
LiabilitiesCapital stock
$8.232.400 $10.499.450 $11,875,000
Surplus fund
34.000,0001 38,905.921 29,350,698
Undivided profits
2.675.083f
Reserves
2.317,124
1,638.301
1,505,019
Deposits
220,739.127 196.804.861 180,528,470
Interest payable to depositors
674,562
468,984
299,073
Bills payable Federal Reserve Bank
1,500,000 13.045,000
Loans & comm. paper rediscounted_
8.357.750
335,000
Dividend payable Jan 2
617,430
Treas. checks & Clear. Rouse bills... 7.797.286
Letter of crud. issued & acceptances.. 2,659,848
Other liabilities
98,019
902,225 3,827.288
Tow
5279.810.8791259,077.4928240,765.548
Trust department (additional)
753,681.883 677,518,085 549,695,010
•Bank of North America & Trust Co. consolidated with Pennsylvania
Co. for Insurances on Lives & Granting Annuities as of June 1 1929 under
name of latter. Colonial Trust Co. merged March 29 1930. Above statement is combined results of all companies for all periods.
Penn Colony Trust Co. (Philadelphia.
$800,000
470,129
762.820
498,553
900,000
$800,000
397,203
1.321.427
481,674
$800.000
450.000
1.571,504
296.908
10.739
55.982
53,431.502 $3,011,043 33.174.394
Total
Plaza Trust Co.(Philadelphia).
Dec. 31 '30. Dec. 31 '29.
$294.461
$105,484
322.929
146,523
440.0
33.540
520.442 1.570,714
276.100
769,500
120,875
200.695
295.000
270,000
40,000
61,528
33,293
62.131
ResourcesCash and due from banks
Bonds owned
Stocks owned
Loans
Mortgages owned
Other real estate
Bank buildings
Furniture and fixtures
Other resources
Total
LiabilitiesCapital stock
Surplus
Res, for ddeeprec.,
pos0.8taxes, int., conting., &c
Demand
Time deposits
Bills payable
Other liabilities & mortgage payable
Total
*Pennsylvania Co. for Insurances on Lives & Granting
Annuities (Philadelphia).
$3,431.502 13.231,043 33,174.394
11,571,257 13.992.016
$312000:3060
195.429
224.429
296,589
289,000
145,500
$646,720
971,060
15.924
1,106,677
578,736
502,051
171.048
11.571.257 $3,992,216
Provident Trust Co. (Philadelphia).
Dec. 31 '30. Dec. 31 '29. Dee.31'28.
ResourcesMortgages
$2,670,409 12.671,116 83.270,572
Stocks and bonds
20,500.881 20.164.702 21.269.754
Commercial paper purchased
913.877
1,137.394
908.287
Loans on collateral
18,031,719 19,047.384 18.623.902
Real estate
4,042,507 3,527,196 3,252.077
Cash on hand & due from Mrs.& bkrs- 4,546,519 4,667.064 3,929,522
1.077,994
Miscellaneous assets
576.525
1,013,206
Total
$51.713,528 351.791.381 852.337.698
LiabilitiesCapital stock
$3,200,000 33.200.000 $3,200.000
Surplus
12,260,000 12.260.000 12.260.000
Undivided profits
4,965,909 4.947,637 4.697,810
Special reserve fund
2,577.128 2.577,128
Dividend payable Jan 2 1931
320.000
320,000
Reserve for taxes and other liabilities_
216.366
656.227
585.965
Deposits
27,053,269 24,924,297 26.964,713
Bills payable
2,575.000 1.250,000
Other liabilities
331,092 3.748.808
751,257
Total
$51,713,528 351.791.381 152.337.698
Crust department (additional). incl.
337,679,958 321,819,300 225,869,508
corporation trusts
*Security Title & Trust Co. (Philadelphia).
Resources-
Cash, specie and notes
Due from approved reserve agents
Due from other banks & trust co.s
Bills discounted
Time loans with collateral
Call loans with collateral
Loans on call on one name
Loans secured by bonds & mortgages
Bonds and stocks
Bonds, mortgages and Judgments- Office building and lot
Furniture and fixtures
Other real estate
Miscellaneous
Sept.24'30. Dec. 31 '29. Dec. 31 '28.
$102,594
3793
101.552
122,435} 3106,380
3,619
1,331
650,476
198,447
565.523
1.300,399
109.989
2,027.708
272,981
392,046
227,971
214,396
129.601
216.372
253,522
216.371
33,054
33,150
37,440
4,500
3,971
11.423
11,172
30,939
ResourcesDec. 31 '30. Mar. 25 '29 Dec. 31 '28.
Cash in vault
$85,024
$77,546
378,937
Cash in banks
110,595
117.158
205,833
Loans and discounts
509,140
682,049
593,897
Bonds and securities
1.334.2381
$2.296,593 $2,394,937 12,952.666
940.704
Total
933.349
Mortgages
38,0001
Liabilities71,075
Real estate
$661,450
$661.450
$661.450
Capital
30,698
Vaults,furniture & fixture
23.442
23.357 Surplus stock
101.717
170,326
102.620
23,065
20,114
Other resources, accrued interest due.
15.835 Reservefund and undivided Profits28.222
13.953
1,205
459,9321 1,128.548f 1,049.071
Total
$2,201,835 11,861.019 11,851,208 Demand deposits
1
627,187
457,6391
Time deposits
Liabilities350,000
475.500
220,000
Bills payable
$200,000
$200,000
Capital stock
125.000
$200,000 Mortgages payable
13,653
37,115
Surplus and net profit
125.500
47,801 Other liabilities
223.427
47,535
Reserves
1,580
Depealts
1,824,773 1.604,047 1.499,533
32,296.593 32394,937 $2.952,666
Total
Bill payable
115.000
100.000
Other liabilities
874
19,849
2.294
* Sixty-third Street Title & Trust Co. and Security Title & Trust Co.
consolidated under name of latter as of May 10 1929. Above figures are
12,201.835 $1,861,011 51,851,208 combined results of both companies for all periods.
Total
1554
FINANCIAL CHRONICLE
The Real Estate Trust Co. of Philadelphia.
ResourcesLawful reserve bonds
Cash on hand
Due from banks and bankers
Call loans on collateral
Time loans on collateral
Loans on bonds and mortgages
Loans on one name paper
Stocks, bonds, &c
Real estate
Other assets
Dec. 31 '30. Dec. 31 '29. Dec. 31 '28.
8304.000
$304.000
$249.000
297,505
284.213
254.440
647.916
1.094.706
1,703,299
2,717.146 3.102.790 3,057.144
392.529
316,635
383,819 2,977.961
10.000
25,000
2.790.505
5,298.517 5,000.000 4.893.600
22.818
26,831
143,745
Total
$13,565,471 $13.193.030 $12.856.217
Liabilities-•
Capital stock paid In common
$3,131,200 $3,131.200 $1,319.600
1,811.600
Capital stock, preferred (full paid).
1,500,000
2,000,000 2,000.000
651.250
411.662
Unilvided profits
.
94.650
14,807
Building renewal reserve
36,353
832.000
832,000
832.000
Principal of ground rents
7,082,444 6,552.687 6.671.803
Deposits
158
453
260
Dividends unpaid
55.000
• 170,378
60,238
Other liabilities
613,565,471 $13.193.030 812,856,217
$50,408,942 $48,428,065 $47.742,451
1928.
1929.
1930.
29'
29'
2%
Rate of interest paid on deposits.--$219,026
$266.099
8250.496
Divs. paid In cal. year
Total
Trust department (additional)
The Real Estate-Land Title & Trust Co.
(Philadelphia).
Dec. 31 '30. Dec. 31 '29. Dec. 31 '28.
Resources.Cash on hand and due from banks-- $5,149,457 $6,891.463 $14.366,097
42,857,481 45.185,565 47.591,622
Loans
21,206.536 20,606.226 22.419.016
Investments
721.877 2.305.527
1,170,241
Real estate
4,656,133 3.664,544 4,191,996
Other assets
$75,039,848 $77.069,675 $90.874,258
Total
Liabilities$7,500,000 $7.500,000 $7,500.000
Capital stock paid in
15.378.619 15.329,506 15,167,384
Surplus and reserves
1.868.646 1.124,830
2.020,107
Undivided profits
46,807,524 45,110,081 56.319,161
Deposits
3,333.598 7.261.442 10.762.883
Other liabilities
Total
Trust dept. (additional)
$75.039,848 877.069,675 890.874,258
$162,820,673 158.087.517 140.656,037
Richmond Trust Co. (Phila.)
[Vol.. 132.
Suburban Title & Trust Co. (Philadelphia).
Dec. 31 '30. Dec. 31 '29. Dec. 31 '28.
Resources$123,922
$118,039
Oath, specie and notes
$11,083
179.559
182,608
385,403
Due from approved reserve agents-,
116,000
Legal reserve securities, at par
483,696
530.213
Bills discounted-Upon one name
160,293
167,768
Upon two or more names
264,321
618.987
2,047,641
Time loans with collateral
215.439
84,517
Call loans with collateral
150,038
245.804
Loans on call. upon one name
317,675
236,168
Loans secured oy bonds & mortgagee
744.968
1,022.174 1,000,970
Bonds and stocks
891.242
923,818
878,771
Bonds and mortgages owned
341,446
368,370
350,9511
Office building and lot
32.6731
Other real estate
94,063
108,576
109,261
Furniture and fixtures
1,121
1,028
2,967
Overdrafts
2,499
2,066
Book val, of legal res. sec. above par..
45,392
30,730
44.498
Other assets not included in above.-$4,885,422 $4.886.315 $3,996,511
Total
Liabilities$500,000
$250,000
$500.000
Capital stock paid in
300.000
50,000
300,000
Surplus fund
184.018
159.856
123,636
Undiv. profits less exp, and taxes Pd.
22.841
27.380
62,330
Res.for interest, taxes and expenses-1,372,062 1,519,689
Deposits, subject to check
45.000
40.000
Deposits, Commonwealth of Pa..--5,672
19,979
Certified checks
9,762
17,547
3,411,036
Treasurers checks
212,485
186,920
Time certificates of deposit
39.988
25.889
Special time deposits
1,616,209 1,329,632
Time saving fund deposits
I
112.500
60,000
480.000
guaranteed_
Notes and bills redis. or
422.000
285.000
Bills payable
18.420
44.778
24,618
Other liabilities not incl. in above-Total
Trust department additional
$4,885,422 $4,886,315 83,996,511
32,023
36,570
23,852
United Security Trust Co. (Phila.).
Dec. 31 '30. Dec. 31 '29. Dec. 31 '28.
Resources31.865,300 81,891.800 82.882,429
Bonds and mtges. owned
2,437.994 4,134,948 4.446.950
Bonds and stocks
3,404.730 6.449.686 6,093,631
Loans on collateral
1,351,811
1.900.807
Commercial paper
370,622
545.511
999,791
Banking house and other real estate
1,479.298 1,191,589
1,607.756
Cash on hand and on deposit
222,840
25,611
78.285
Other assets
$11,681,591 $14,239,145 $17,460,650
Total
LiabilitiesDec. 31 '30. Dec. 31 '29. Dec. 31 '28.
Resources$750,000
$750.000 $1,750,000
$106,592
$102,479 Capital stock
$122.507
Cash, specie and notes
700,000
700,000
1,700.000
201,936 Surplus
143,594
210,801
Due from approved reserve agents284,506
119,991
94.717
235
230 Undivided profits
Due from other banks, trust cos., &c_
702
486
84,291
136.936
139,744 Reserve
120.070
Commercial paper
100.000
300,000
700.000
143,200
138.700 Bills payable
98.002
Time loans on collateral
13.370.235
11,988.323
9,798.684
demand..
on
payable
deposits
190,200
General
137.600
104.208
collateral
on
Call loans
171,621
12,214
5.619
265,217
295.530
199.838 Other liabilities
Loans on call on one or more names_ _
667.365
726,649
609.537
Mortgages
817,460,650
$11,681,591
$14,239,145
1,322,954
1,118.654
Total
1,024,167
Bonds and stocks
24.298
10,064
187,233
Real estate
purchased as of Nov.
174,637
• The United Security Life Insurance & Trust Co.
171,861
Bank building
Trust Co. and changed
14,094
16,165 23 1929 the entire capital stock of the Republic
11,750
Furniture and fixtures
All of the banking business
2,261
2.046
1,281 Its name to the United Security Trust Co. was
Other resources
transferred to the United
of the United Security Life Ins. & Trust Co.
the active banking busi82,924,935 53,258,790 $2,758,911 Security Trust Co., which company Is continuingUnited
Total
Security Life Ins.
and the
Co.
Trust
Republic
of
ness
former
the
Liabilities$254,600
8254,600
8231,500 & Trust Co.
Capital stock
68.852
69,627
profits
undivided
56.941
and
Surplus
46.500
34.000
20,720
Reserve for depreciation
2,149,942 2,733.931
2,419.134
Deposits
402.000
165,000
30,000
Bills payable
3,041
1,632
616
Other liabilities
Wharton Title & Trust Co. (Philadelphia).
82,924.935 83.258.790 $2,758,911
Total
Roxborough Trust Co. (Philadelphia).
Resources-Cash on hand
Cash on deposit
Commercial paper purchased
Time loans on collateral
Call loans on collateral
Bonds, stocks. &c
Mortgages and judgments
Office building and lot
Furniture and fixtures
Real estate
Other resources
Dec. 31 '30. Dec. 31 '29. Dec. 31 '23.
899.541
$83.288
$138,174
223.749
160,140
206,863
410,430
367,343
477.475
38.465
17,920
151,090
398,669
443,733
546.244
1,076.633 1,221.852 1,135,269
704,080
861,087
859,241
179.830
179,830
177.340
46.342
44,944
43,862
134,532
78,706
8.912
15,554
$3,198.234 83,581,792 $3.751,112
Total
Liabilities$300,000
$300,000
$300,000
Capital stock
450,000
450.000
450.000
Surplus fund
49.129
18.160
26,916
Undivided profits
35.345
79,315
28.579
exP-4&
tax
int..
deprec..
for
Reserve
918,306 1,376,162
640.414
Demand deposits
1.444,128 1,295,260
1,225.346
Time deposits
368,950
476.000
256.000
Bills payable
15.334
10.000
19,195
Other liabilities
$3.198,234 $3.581,792 $3,751,112
Total
Sonsitaly Bank & Trust Co. (Philadelphia.)
Total
$981.691
$968,740
$125,000
90.000
4,657
159,1061
595,343J
7,585
$125.000
75,000
22,024
746.716!
1
$981,691
$968.740
Total
Trust dep.(additional)
$736,347
$2,096
$837,830
Wyoming Bank & Trust Co. (Philadelphia).
Dec. 31 '30. Dec. 31 '29. Dec. 31 '28.
Resources666,886
Cash, specie and notes
.
Ch,
183.580
89 879
$278,172
Due from approved reserve agents-}
30,000
30 0001
Legal reserve securities
183.176
79,566
443.0001
Commercial paper
63,611
2/3,741
Time loans on collateral
769.195
1,825,036
Call loans on collateral
282.690
Loans on call on one name
173,711
Loans payable on demand
645.185
596.470
704,434
U.S. and other bonds
194,337
Preferred stocks-Investment
301,885
219,000
Mortgages and judgments of record....
1114,648
1
140,993
141,073
Office building and lot
1 23,496
,
J
Furniture and fixtures
13,745
Other resources
$2,677,996
$2,948.635
$2.462,710
Total
$780,867
Liabilities$200.000
$125.000 Capital stock
$200,000
$200,000
140.000
150.000
150,000
75,000 Surplusfund
12,081
1,153 Undivided profits
32.787
38,439
825.126 2,554.052 J 956.972
151.518 Demand deposits
1
11,356.670
J 1,229,476
416.198 Time deposits
11.669
Reserve for depreciation
12.273
11-,96
8,000
12,000 Miscellaneous
82.077,996
*2,948.635
$2,462,710
$780,867
Total
Dec. 31 '30. Dec. 31 '29. Dec. 31 '28.
Resources$13.546
$15.783
Cash, specie and notes
119.7091
$99.2641
144,781
agents.._
Due from approved reserve
166
Nickels and cents
7.334
2.585
Due from bank'g instit., excl. res_ - _
25,7851
8.525
Time loans with collateral
412.9501
117.850
201,500
Call loans with collateral
14.100J
18,700
Loans secured by bond and mortgage_
127,261
221,685
84,922
Commercial paper
19.739
144.227
16,912
Bonds and stocks
178,900
174,100
162.600
Mortgages owned
69,139
93,070
52.785
Judgment of record owned
61,487{
50,0001
50,000
Office building and lot
11,691i
11,160
Furniture and fixtures
58
94
Overdrafts
Total
LiabilitiesCapital stock
Surplusfund
Undivided profits
Demand deposits
Time deposits
Reserve for deprec
Other liabilities
Dec. 31' 30. Dec. 31 '29. Dec. 31 '27.
Resources$18.426
$72,120
Cash specie and notes
44.927,
Due from approved reserve agents --223.623'
Commercial paper
340,160
63,651
Time loans with collateral
46,363
('all loans with collateral
14.942
Loans on call on one or more names 318,245.
247.346
Bonds & stock
15.730
Mortgages
52,943
()ince Witting and lot
9.303
46.222
Other real estate
4,993
Furniture and fixtures
Figures
6,356
Other assets
Not
Furnished
$786,347
$737.830
Total
Dec. 31 '27.
Liabilities$160,5
$200.000
Capital stock
15,
22.500
Surplus fund
946
Undivided profit
17.293
Reserve for depreciation
421.266
225.2781
Demand deposits
240.5011
Time deposits
125.000
75.000
Bills payable
16,064
4.829
Other liabilities
FEB. 28 1931.]
FINANCIAL CHRONICLE
1555
BALTIMORE COMPANIES
American Trust Co. (Baltimore).
*Maryland Trust Co. (Baltimore).
Dec. 31 '30. Dec. 31 '29. Dee, 31 '28.
ResourcesResourcesDec. 31 '30. Dec 31 '29.
31
Loans..
522.107.878 57.017.340 56,599.635
Loans and discounts
$1,242,490 51,172,481 $1,174,39
*
10,704,554 2,320,288 2,773.670
bonds,securities, &c
Stock , bonds, securities, &c
733,525
841,933
s616,560 Stocks,
Banking house
156,644
156,643
156,644 Due from banks, bankers & trust cos.- 6,092,342 1.834,388 8.745.245
2,869.953 1,369.079
914.413
Furniture and fixtures
4,382
4,381
4,281 Cash on hand and on deposit
615.000
615.000
Due from banks, bankers & trust cos_
2,352
4,304 Banking house and office building.- 1,469,085
313,508
Miscellaneous
135.558
assets
111,564
Due from approved reserve agents- _
396,180
90,609
475,544
lftsh
43,531
22,898
11,541
$43,357,320 $13,291,653 514,759.527
Total
Miscellaneous assets
37,443
53,470
17,644
Liabilities52,500.000 51,000,000 $1,000.000
stock
Total
82,414,776 52,544.186 $2,460,910 Capital
Surplus
2,000,000
750.000
750,000
695,813
Undivided profits
Liabilities261,937
219,606
438,409
Capital
8500,000
5500.000
28,894
53,871
$500,000 Reserves
37.579,167 11,240.964 12,736.050
Surplusfund
100,000
100.000
100,000 Deposits
143,931
Undivided profits
20.084
9.858
18.971
15,587 Miscellaneous
Demand deposits
414,777 1,116,571
334.967
$43,357,320 $13.291,653 $14.759.527
Total
Savings and special depoitsi
385,312
375,512
429.638
* Continental Trust Co., Drovers & Mechanics National Bank and
City of Baltimore deposits
977.721
431.318
150.000
July
26 1930 under name of Maryland
Maryland Trust Co. merged as of
Bills payable
532.624
Trust Co. Above statement for Dec. 31 1930 is for the Consolidated
Reserves
19,271
for Maryland Trust Co. alone.
1928
and
1929
Mortgage account
institutions.
31
For
Dec.
132,000
132,000
Unearned discount
3,317
3,054
Other liabilities
10,975
102,113
14,060
Mercantile Trust Co. (Baltimore).
ResourcesDec. 31 '30. Dec. 31 '29. Dec. 31 '28.
Total
$2.414,776 52.544.186 52,460,910
$15.002,035 514.156,785 $16,580.057
Loans and discounts
6.008.242 6,263.677 5,862,940
Stocks, bonds,securities, &c
*Baltimore Trust Co.(Baltimore).
100.000
Banking house, furniture and fixtures 1.185.000
100.000
3,574.149 1,990,184
Cash
on
hand
and
on
deposit
ResourcesDec. 31 '30. Dec. 31 29. Dec. 31 28. Unsettled bond accts. & accts. receiv- 2,647.863
433,142
306,234
340.305
Cash on hand & in P.R.& oth. banks-513,741,641 513.701.786 512.190,404 Foreign
19,102.
27.205
U.S. Govt.and other bonds & invest.. 20,687,331 14.855,554 18.584,482 Clearing department
881.716
875.233
773,391
House exchanges
46,752,044 57.414,242 46,489,932 Customers'
Loans
156,982
260.579
110,833
crud
Habil,
o
letters
un
ler
Customers liabilities account accepts.
Total
526,060,803 825,579.070 526.031.789
and letters of credit
6,675,687 7,076,168 6.418.008
LiabilitiesBanking houses, furniture & fixtures.. 8,643.802 7,946,934 3.391.001
stock, paid In
$1,500,000 $1,500.000 51.500.000
682.449
Interest earned but not collected.907.346
360,752 Capital
Surplus fund
4,000,000 4,000.000 4,000.000
410.106
661.876
697.849
Total
$97,182,954 (101.902,030 587,434,579 Undivided profits
Reserve for interest and taxes
300.855
369,656
305,770
LiabilitiesDeposits (demand)
15,252.304
14,454.194
13.493.065
Capital
86.250,000 56,250.000 $4.500.000 Deposits (time)
4,436,362 4,307,945
5,953,286
Surplus and undivided profits
5,250,000 5,250.000 6,403,585 Letters of credit
260,579
156.982
110.833
Reserves
1,205.642 1.262.777
792,736
Total
$26.060.803 525,579.070 $26,031.78
Acceptances and letters of credit
6,882.165 7,455.021 8,110,208
Acceptances and foreign bills sold
1.099,685
1.807.526
Bills payable with Federal Res. Bank
3,000,000
Real Estate Trust Co.(Baltimore)
Deposits
76,495,462 76,876,706 64,628,050
ResourcesDec. 31 '30: Dec. 31 '29. Dec. 31 '28.
Loans
$1,582.338 $1,421,430 $1,693,874
Total
$97,182,9545101,902,030 887.434,579
222,970
.
} 354,485
* Century Trust Co. and Baltimore Trust Co. consolidated as of Nov. 22 Investments
255.230
1929 under name of latter. Above statement is combined results of the Mortgages
Furniture and fixtures
6.264
8.300
7,690
two institutions for all periods.
Due from approved reserve agents-) 212,585
159,104
239.895
Cash
10.790
11.926
Interest
earned not collected
Colonial Trust Co.(Baltimore).
22,342
13,358
11.693
Miscellaneous
1.198
943
833
ResourcesDec. 31 '30. Dec 31 '29. Dec. 31 '28'
Total
$2,171,399
$2,116,177
$2,246.258
Loans and discounts
$653,221 $1,229,647
$812,456
Liabilities
Overdrafts, secured and unsecured....
99
182
478 Capital stock
$600,000
$600.000
$600,000
Stocks, bonds,securities, &c
1,313,385
1,127.068
824.573 Surplus
150,000
150,000
150.II'
Mortgages
168,550
207,800
261,250 Undivided profits
43.400
49,898
21,5 1 I
Bkg. house,(urn..fixtures & vault....
222,092
154,932
153,642 Deposits (demand)
1
1.256.927
1.353,264
11.338.950
Otherreal estate
187.653
167,418
26.498 Deposits (saving and special)
i
186.302
Checks and cash items
59
897
94 Reserve for interest
17,484
8.179
4,375
280,231
307.459
Due from approved reserve agents
195.814 Other liabilities
753
1.352
1.450
18,080
16,422
Lawful money reserve In bank
18,191
Total
15.448
$2,171,399 52,246.258 52.116.177
24,768
Miscellaneous
17.138
Total
LiabilitiesCapital stock paid in
Surplus fund
Undivided profits
Deposits
Reserve for taxes
Other liabilities
$2,895,366 $3.200.042 $2,310,134
Safe Deposit & Trust Co.(Baltimore).
ResourcesDec. 31 '30. Dec. 31 '29. Dec.31 '28.
Stacks and bonds
515.882,538 $14,695.430 $14.420.857
Loans, demand, time and special.... 4,230.513
5,390.044 4,794,297
Mortgage loans
875,023627.675
624,532
Cash on deposit in banks
5,089,660 2,363.366
3,378,760
Bills receivable
53,000
52,000
102.000
Real estate
-,
100.000
130,720
275,000
Accrued Interest receivable
39,879
25,566
41.627
$2,895,366 $33.200,042 $2,310,134 Other assets
Total'
5,754
28
24
Total
824,474.663 $26,073,784 $22.449.846
Equitable Trust Co. (Baltimore).
LiabilitiesCapital
$2.000,000 51.200.000 $1.200.000
ResourcesDec. 31 '30. Dec. 31 '29. Dee.31 '28. Surplus stock
4,000,000
3.600,000 3.600.000
Loans and discounts
$12,368,633 $14,007,511 $12,222,811 Undivided proms
870.198
1,196,720
981,154
Overdrafts, secured and unsecured
1,100
2.
1,576
Reserve for taxes. &c.
257,978
415.646
375.867
Stocks, bonds, securities, &c___
9,555.596 7,798,293 9,491.079 Deposits
14,730,793 16.980,846 14.341.441
Bank. house, vaults. turn. & fixtures250.000 Deposits, trust
250,000
250,000
funds
2,615,694
2.720,351
1,911.605
Due from banks, bankers & trust cos_
24,267
92,950
119.598
Total
Due from approved reserve agents...._ 2,358,745 3,859,031 3.563.896
$224,474,663 526.073.784 822.449.846
Lawful money reserve in bank
335,888
313.172
266.680
Accrued interest receivable
131,235
130,537
143.089
Title
Guarantee & Trust Co. (Baltimore).
Miscellaneous
83.371
133,935
93.294
ResourcesDec. 31 '30. Dec. 31 '29 Dee.31'28.
Total
525.155,278 826,540,612 826,153.090 Loans and discounts
$2,544,962 53,051,817 $2.918.323
Stocks, bonds,securities. &c
Liabilities3,043.918 3,466.304
2,179.610
house,furniture and fixtures
600,200
600.20
600,200
Capital stock paid in
$1,250,000 $1,260,000 51.250,000 Banking
Mortgages and ground rents
2,731.452 2.395.24
Surplus fund
2,286,467
2,000,000
2,000.000 1.500.000 Cash
in
and in banks
905.533
Undivided profits
1.115,971
581,846
388,239
500.523
549,015 Equity inhand
other real estate owned__ _
124.331
48.009
80,388
Due to banks, bankers and trust cos_
481,639
315,753
350.272 Accrued Interest
47.458
39,550
26.481
Due to approved
587.149
562.916
704.110 Miscellaneous receivable
6,904
3.312
Deposits
4,810
10,939,043 13,566,574 12.004,685
Deposits time)
Total
8,895,297
7,820,871 9,355,719
$8,304,764 610,637,821 810,460.709
Dividends unpaid
37.260
56,381
32,000
Liabilities
,
Reserved for taxes. interest, &c
401,177
461,814
325.950 Capital stack paid In
6800.000
$6130,000
8600.000
Alscellaneous
63.190
115,034
81.299 Surplus
1.000,000
1,000,000
900.000
Undivided profits
33.980
44,174
31.37
Total
$25,155.278 $26,540,612 $26,153.090 Due to banks,
352,855
229,&36
bankers & trust cos.__
Deposits (demand)
4,887.378 I 8.558.347
3,199,451
(time)
3071551
. .
2, .
Fidelity Trust Co.(Baltimore).
Bill
'
s payable
600,000
375,000
300.000
ResourcesDec. 31 '30. Dec. 31 '29. Dec.31 '28. Reserve for Interest on deposits
92,057
139.722
70.983
Loans and discounts
$9,034,825 $9,775,261 $9.532.877
Total
$8,304.764 $10,637.821 $10,460.709
Overdrafts, secured and unsecured448
261
580
bonds,
Stocks,
securities, &c
9,502,141
8,047,716 8.765,684
*Union Trust Co. (Baltimore).
Due from banks, bankers & trust cos..
3.103
5.060
3.092
Due from approved reserve agents
3,018.134 3,334.302 3.165.618
Resources:Dec.31'30. *Dec. 31' 29.tDee. 31'28.
Cash on hand
365.079
Loans and discounts
497,085
$44,603,561 $28,592.862 $26.486.197
352.869
31,817
Due from cust'rs under letters of(red
57,804
15,664,047 6,538.146 8,632.240
90.767 Stocks, bonds, securities, &c
Miscellaneous assets
15.033
8.090
450.000
4,770 Banking house,furniture & fixtures..) 2,590.936f
450.000
1
687.006
Total
687.006
$21,970.580 $21,725.579 $21.916.257 Branch office properties
Cash and exchange
9,805.907. 5.951,596 5,313.736
LiabilitiesCredit granted on acceptances
423078
1,215.543
426.584
Capital stock Paid in
$1,000,000 $1.000.000 81,000.000 Customers'Habil, under letters of cred
14,487
26,838
218,520
Surplus fund
2,000.000 2,000.000 2.000.000
Total
$73,114,367 $43,449,640 $42.224.059
Undivided prorlts
785,603
760.203
647.626
Liabilities-811.661
1,213.109
Due to banks, bankers and trust cos..
831,897 Capital stock paid
$2,500.000 51,500,000 51.500.000
in
442,986
Due to approved reserve agents
363,061
342,058
5,000.000 2,500,000 2,500. 1
Deposits (demand)
12,807,345 13,462,119 13.338.114 Surplus fund
Undivided
1,550,583
profits
1.500.4551,288,I
Deposits (savings and special)
2,980,665
1,755,322 2,190.839
Reserve for interest and taxes. &c...
600,745
217.863
58,557
Reserve for taxes and Interest
58.186
229,198
40,000
63,265,592 36.547.297 38.061.734
Certificates of deposit
100.000
100.000
100 ou0 Deposits
170,609
1,170,543
651.946
gm.9m Acceptances sold
455,775
Trust deeealta
426.584
26,8.38
13,482
City of Baltimore deposit
350000 Letters of credit
500,000
300.000
218,520
57,804
31,817
Liabilities under letters of credit._
Total
OT.M.73711 543.449.640 $42,224,0,0
90,767
* In October 1929 purchased the National Bank of Baltimore. f On
$21,970,580 $21,725,579 $21,916.257
Total
Feb. 1 1928 Union Trust Co. absorbed the West Baltimore Bank and
1929.
1930.
1928.
Overlea (Md.) Bank,and on March 1 1928 the Commercial Bank of MaryDivs. pd. on co.'s stk. local. year
24%
24%
24% land
Md.). :Absorbed the Monumental City Bank, July 1
Rate of interest paid on deposits.... 2%say 334 %234%sav.331% 231%sav 1930,(Arlington,
and the Farmers & Merchants Nat. Bank, July 31 193^.
$400.000
600,000
91.149
1,769,829
11,620
22,768
$400,000
600,000
122,838
2.051,148
21,802
4,254
5300.000
300.000
56,671
1,635.488
7,325
10,650
1556
FINANCIAL CHRONICLE
[Var.. 182.
ST.LOUIS COMPANIES
*Bremen Bank & Trust Co.(St. Louis).
Fidelity Bank & Trust Co. (St. Louis) (Concluded)
LiabilitiesDec. 31 '30. Dec. 31 '29. Dec. 31 '28.
Resources*1)ec. 31 '30.
$200,000
5200.000
$200,000
Loans on collateral security
51.000,926 Capital stock paid in
Surplus
50,000
50.000
40,000
Loans on real estate security
1,068,420
11,398
23,515
11,741
Overdrafts by solvent customers
2,088 Undiv, prof. less current exp.& tax.,.
Dep.
sub,
to
by
draft
at
sight
indiv.Bonds and stocks at present value
4.014,144
963,469
1,179,927
& others,incl. dem.ctfs, of dep
748.498
Stocks in Federal Reserve Bank, St. Louis
27,000
329,268
114,202
143,554
Real estate (company's office building) at present value
197.800 Time certificates of deposit
512,727
536,838
Savings
365,667
deposits
United States Liberty bonds
1,000
113,344
266.388
Safety deposit vaults
23,800 United States deposits
26,612
77.790
22,427
Due from Fed. Res. Bank, other trust companies and banks- _
571,291 Treasurer's checks
4,471
Checks and other cash items
438 Special reserves
190,443
Other resources
141,675 Rediscounts
26
40
Dividends unpaid
532,019
498.958
491,000
Total
$7,048,582 Bills payable
300,000
Bonds borrowed
Liabilities$400,000
Capital stock paid in
$2,363,946 52.495.204 $3.345,171
Total
Surplus
500,000
225,480
Undivided profits leas current expenses and taxes paid
1,433,587
Deposits.
Time certificates of deposit
3,125.399
'Franklin-American Trust Co.(St. Louis).
Other deposits
11,904
1,325,043
Savings deposits
Dec. 31 '30. Dec. 31 '29.*Dec. 31 '28.
Resources13,329 Bonds
Cashier's checks
$4.397,041 $2,975,059 *52,818,384
and stocks
13,840 U. S. Government
Unpaid dividends
874,784
1,088,550
1.829,751
securities
Other liabilities
120,000
90,000
90,000
Stocks in Fed. Res. Bank,St. Louis
20,216.326 13,518,723 12,974.350
Demand
loans
$7,048,582 Time loans
Total
7,224,094 7,597.417 8,407,991
1,534.961
797.955
1,020,766
Real estate loans
* Organized as the Bremen Bank in 1868; named changed to Bremen Cash and exchange
8,308.478
5,275,245 5,548,029
Bank & Trust Co. as of May 1 1930.
11,648
15.830
26,474
Overdrafts
79.812
36.169
81.231
Customers'liability on letters of credit
66,237
73,944
133.001
Interest earned, uncollected
*Cass Bank 8c Trust Co. (St. Louis).
96,640
102,435
143,704
Furniture and fixtures
Dec. 31. '30. Dec. 31 '29. Banking houso
Resources551,844
278,879
$1,303,274 $1,123,446 Other real estate owned
Loans on collateral security
8,342
1,613,590
1,594,245 Safe deposit vaults
Loans on real estate security
96,650
104,388
95.534
Other negotiable and non-negotiable paper and
167,749
51,164
256,958
404,909 Other resources
Investment securities
2,114
by
solvent
customers
356
Overdrafts
$43.699.807 531.861.685 533,625,045
Total
2,722,108
2.761,913
Bonds and stocks
Liabilities21,000
Stocks in Federal Reserve Bank, St. Louis
21,000
150,000
Real estate (company's office building)
150.564 Capital
$2,600.000 52.000,000 $2,000,000
1
Other real estate
1 Surplus and undivided profits
1,930.865
1,127,360
1,383,262
100,000
Safety deposit vaults
100,000 Reserves
69.721
79,848
41,304
Due fr. Fed. Res. Bank and other bks. & tr. cos
327,859
455.014 Deposits
38,526.918 26.202,008 27,331,348
7,312
Checks and other cash items
8,422 U. S. Government deposits
104,000
1,153.000
404,800
153,067
Cash on hand
138,538 Bonds borrowed
124,850
11,839
398,700
All other resources: U. S. securities borrowed
525.500
525,500 Letters of credit outstanding
293,235
199,132
39,569
275,000
1,820,000
Bills payable
Total
$6,925,825 57,283.908 Notes payable
900.000
Liabilities50.218
57,479
62,081
Unearned discount
Capital stock
$300.000
3300.000
Surplus
400,000
400,000
543,699,807 $31,861,685 $33,625,045
Total
Undivided profits less current exp. and taxes paid
170,982
167,123
Deposits subject to draft at sight by individuals
* Franklin Bank and American Trust Co.consolidated as of April 23 1928.
and others
1,615,961
1,816,051
1,582,916
Time certificates of deposit
1.590,102
Other time deposits
6,249
*Guaranty Bank & Trust Co. (St. Louis).
Savings deposits
1,917,731
2,181,663
United States Government deposits
833
Dec. 31 '30. Dec. 31 '29.
Cashier's checks
37.735
Resources36,838
3729,385
5988.935
375,000
Bills payable & rediscounts with Fed. Res. Bank
260,000 Loans and discounts
27
503
Other liabilities: U. S. securities borrowed
525.500
525,500 Overdrafts
252,812
U. S. Government securities owned
427,985
984,780
Total
$6.925,825 $7,283.908 Other bonds, stocks and securities owned
400
400
Customers liability on account of acceptances-14,088
12,346
*Formerly Cass Ave. Bank.
Furniture and fixtures
232,428
134,890
Reserve with Federal Reserve Bank
510.121
644,527
Cash and due from banks
Chippewa Trust Co. (St. Louis).
7.031
3.553
Outside checks and other cash items
10,858
Dec. 31 '30. Dec. 31 '29 Dec. 31 '28. Other assets-Interest accrued
Resources18,851
$1,294,883 $1,555,278 51,374,646
Loans and discounts
252
$2,398,307 $2,575,616
1,031
Overdrafts
1.250
Total
469,797
325.001
Bonds
451,099
Liabilities7,500
7,500
Stock in Fed. Res. Bank. St. Louis
7,500
$200,000
$200,000
183,000
house
Capital stock paid in
60,000
60.000
259,000
10,0001
Other real estate
215,283 Surplus
6,357
12,899
Undivided profits-net
57.0001
Furniture and fixtures
7,326
3.000
218,487
195,508
Cash and due from banks
Reserves
207.431
49,692
59.399
7.282
10,001
Interest earned. uncollected
10.959 Due to banks, including cashier's checks
2,084,437
1,864,304
deposits
Demand
$2,248,201 $2,353,319 $2,268,168
Total
198,282
160,404
Time deposits
Liabilities400
400
$200,000
$200.000
Capital stock paid in
5200,000 Acceptances
2,239
4,784
interest
liabilities-Unearned
Other
50,000
'50,000
Surplus
50,000
61,031
55.283
Undivided profit
' 50,704
$2,398,307 $2,575,616
Total
1.600
1,400
Reserve for net & taxes
12.600
734,984
834,633
Deposits subject to check
825.345
* Organized as the Insurance Bank in 1925. Name changed to above
693.7721
Savings deposits
988,828
303,8131
Time certificates of deposit
810,402 In 1928.
17,682
27,217
Treasurer's checks
22,159
492
784
Unearned interest
30.322
Commissioners' acc't (Chippewa Bk.)
86,636 'Lafayette-South Side Bank & Trust Co. (St. Louis).
75,000
Bonds borrowed
205.000
100.000
180,000
Dec. 31 '30. Dec. 31 '29. Dec. 31 '28.
131118 payable
Resources$8,134,8961$11,914,053 512,246,422
$2,248,201
52,353,319 T2Total
,268.168 Loans on collateral
Commercial paper and invest. securs_ 4,010,448f
4,950,675
5,007,261
4,407.971
ans
on
real
estate
Easton-Taylor Trust Co. (St. Louis).
20,967
11,275
64.580
Customers' liab. on letters of credit.....
34,502
Dec. 31 '30. Dec. 31 '29 Dec. 31 '28. DemandInterest receivable
33,361
Resources2,279
$642,822
$541,504
763
540
5610.283 Overdrafts
Loans on collateral
424.085
293,875
108,000
379.250 Stock in Federal Reserve Bank
Loans on real estate
279,127
287.617
11,567,627 10,421,914 10,800,450
401,639 Bonds and stocks
Other securities
350,000
566,226
603.768
350,000
375,000
622.128 Real estate (co.'s office building)
Bonds and stocks (present value)
138,481
161,938
160,549
219,974
285,596
149.723 Other real estate
Duo from banks and trust cos
37,600
114.314
38,200
103,912
38,200
Safety
deposit
vaults
140,000
&c
hand,
Cash on
9,459
6.499
6.437 Due from Federal Reserve and other
Furniture and fixtures
2,495,904
9.728
10,326
1,771,696
2.274,040
banks and trust companies
10.925
Safe deposit vaults
57,014
58,122
59.230 Checks and other cash items
Real estate
439,675
348,942
406,622
13,248
16,716
20,252 Cash on hand
Other resources
10,118
602,797
Items in process of collection
}
35,2501
100
$2,324,818
1
$2,036,031
39,452
Other
$2,399.867
resources
Total
Liabilities$31,710,527
$200,000
$200.000
531.923,818
$200,000
531,189,922
Total
in
stock
paid
Capital
100,000
100,000
75,000
Surplus
Liabilities11,821
12,371
36,252
Undivided profits
$2,150,000 $2,150,000 $2,150,000
Capital stock
13,585
17,667
taxes,
&c
Reserves for interest,
1.000,000
1,450,000
1,000,000
Surplus
822,932
682,982
949.214
Deposits. demand
440,372
762,942 ' 645,371
Undivided
75,000
profits
50,000
rediscounts
Bills payable and
100.000
reserves
100,000
100,000
Res,
other
for
and
233,175
int.,
taxes
223.381
189,277
Time certificates of deposit
726,256
848,817
913.323 Deposits subject to draft by trust
Savings deposits
298,670
155,281
252,370
bankers......
companies,
and
18,453
banks
23,198
35,991
Treasurer's checks outstanding
485
726
810 Deposits subject to drafts by indiOther liabilities
9.334,445
9,513.437
7.793,020
viduals and others
8,916,727
10,964.823 7,839,984
$2,329,867
$2,324,818
Time certificates of deposit
$2,036,031
Total
7,311
306,362
11.297
Demand certificates of deposit
7,544.966
6.326.398
7,022,020
Savings
deposits
Louis)
159,771
Fidelity Bank & Trust Co.(St.
142,982
168,805
checks_
certified
Cashier's checks and
625,156
Dec. 31 '30. Dec. 31 '29. Dec. 31 '28. Cashier's checks acct. reserve purchResources54.076
50,894
$1.148,441 $1.263.487 $1.533,961 Fidelity insurance fund
Loans on collateral security
20.967
64,580
11.275
Contingent liability on letters ofcredit
29,450
32,000
Loans on real estate security
555,000
1,345,000
1,075,000
659,725
848,314
1,318,823 Bonds borrowed
Bonds and stocks
920,000
600,000
635,000
rediscounts
Bills
payable
137.916
and
5,254
U.S.eds. of indebt.
3.123
31,200
28,875 Contingent liability on lien claims..
31.200
Furniture and fixtures
100
6.742
50,000
18,690
11.250 Other liabilities
18,540
Real estate
284.409
387.790
223,405
Due from trust cos. and banks
$31,710,527
$31,189,922
$31,923,818
Total
28,598
38,467
20,294
Cash on hand
41,729
28,005
36,498
Other resources
above
* Formerly Lafayette South Side Bank. Name changed as
Total
52,363.946 52.495.204 53.345.171 Jan. 3 1928.
FEB. 28 1931.1
FINANCIAL CHRONICLE
Laclede Trust Co.(St. Louis).
1557
North St. Louis Trust Co.(St. Louis) Concluded.
Dec. 31 '30. Dec. 31 '29. Dec. 31 '28.
Dec. 31 '30. Dec. 31 '29. Dec. 31 '28.
Liabilities-$1,366,432 $1,690,577 $1.620,892 Capital
3200.000
$200,000
5200.000
933,518 1,242.612 Surplus and undivided Profits
997,671
125.095
148.177
159.486
150,000
150,000
150,000 Deposits-Demand
874.749 1,058,361
861,103
8,294 Savings and trust certificates
8.000
8,000
1.627,027 1,726,035
1.489.813
16,841
15,000
16,000 Treas, checks and div. checks
10.522
9.338
286,306
305.567
326,547 Other liabilities-res. for int. & taxes
21.419
22,120
13,405
932
854
226
32.741,560 32.881.894 33.122.896
Total
12.000
12,000
12.000
$2,856,737 $3,096,255 $3.377.277
Natural Bridge Trust Co. (St. Louis).
Dec. 31 '28.
$300.000
$300,000
$300,000
Dec. 31 '30.
Resources207.944
227,247
180,569 Cash
on
hand
and due from banks
3154.686
1,876,067 2,351.766 2.390,881 Loans and
1,016,579
4.733
5,151 Overdrafts discounts
4,604
296
467.000
430,000
418.000 U. S. Liberty bonds
21.921
14.762
18,819
32.676 Other bonds
547.082
50.000
50.000 Accrued interest
14.529
$2,856,737 $3,096.255 $3,377.277
Total
$1,755.093
LiabilitiesLindell Trust Co. (St. Louis).
Capital
$200.000
ResourcesDec. 31 '30. Dec. 31 '29. Dec. 31 '28. Surplus
50,000
Loans and discounts
$1.419,551 $1,922,706 $1,821,124 Undivided profits
14.724
4
$709,441,
Bonds and stocks
1.235.770
Deposits
United States securities
213,000
361,211
190.000 Cashier's checks
20.899
12.000
Stock in Federal Reserve Bank
12,000
7,200 Reserve for depreciation
3,700
382,449
293,010
Cash on hand and in other banks....
239.348 Bills payable
230,000 •
48,905
Furniture and fixtures
50,000
17,735
Bank building
253,702
250,500
250,362
Total
$1,755,093
165
Other resources
ResourcesLoans and discounts
Bonds and stocks
Real estate
Safe deposit vaults
Furniture and fixtures
Cash and due from banks
Overdrafts by solvent customers
Stock Federal Reserve Bank
Total
Liabilities-Capital stock
Surplus and undivided profits
Deposits
Dividend checks outstanding
Bills payable
Treasurer's checks
Bonds borrowed
Total
Total
LiabilitiesCapital stock
Surplus
Undivided profits
Reserve for interest and taxes
Treasurer's checks outstanding
Deposits
Bills payable
Other liabilities
Total
$3,095,713 $2,812,927 82.525.769
3300.000
100,000
70,626
11,500
61,449
2,550,936
1,202
3300,000
100.000
54.201
14,093
3200.000
40.000
46.046
2,867
2,223,127
120.000
1,506
1,995.971
240,000
885
33,095,713 12.812.927 $2,525,769
*Mercantile-Commerce Bank & Trust Co. (St. Louis).
ResourcesDec. 31 '30. Dec. 31 '29.
Time loans
328,457,275 537,485,066
Demand loans
35,830,214 43,324,203
Acceptances of other banks
1.821.814
Bonds and stocks
28,984,198 19,653,216
Liberty bonds and U. S. Government certificates
of indebtedness
9,859,851
8,275,501
Stock in Federal Reserve Bank, St. Louis
450.000
450.
Real estate (company's office building)
2,600,000 2.600.000
Sate deposit vaults
700,000
700,000
Other real estate
2,750,000 2,750,000
Overdrafts... -- --------------------------- --- 4,338
64,831
Cash due from baiiirs
,30,592 27,895,111
33-1,296
Customers' liability on letters of credit
662,187
130.525
Customers'liability on acceptances
316,610
Total ______________ 3142,453,103 3144177,056
LiabililiesCadital stock
310.000.000 $10,000,000
0,000.0001 7,949,614
Surplus
2,815,5885
Undivided profits
1 351.0005
Reserve for taxes
80,000
1
Reserve for interest
65,000
8,542
Unpaid dividends
7,863
334.296
Bank's liability account letters of credit
662,187
130,525
316,610
Bank's liability account acceptances
48.576
United States Government deposits
37,113,986 34,007.660
Time deposits
86,699,166 91,039.546
Demand deposits
Northwestern Trust Co.(St. Louis).
Dec. 31 '30. Dec. 31 '29. Dec. 31 '28.
Resources$4,526,915 84.810.95' 54,867.021
Loans and discounts
1,024,441
689,121
775.206
Cash and due from banks
20,775
200
200
Real estate
1,586
2.196
5,951
Overdrafts
122.000
120,000
120,000
Banking house,furniture & fixtures.4,950,454 4,572.109 4.894.599
Bonds and stocks
Total
510.313.216 510,529.293 510.661.222
Liabilities5500.000
$500.000
Capital stock
5500,000
1,000.000 1,000.000
1,000,000
Surplus
163,626
183.411
Undivided profits....
172,086
8.248,805 8,709.667 8.932,536
Deposits
Bills payable
200.000
181,000
Reserves
156.000
56,600
Total.,.$10,313,216 $10.529.293 110.661.222
Park Savings Trust Co.(St. Louis).
Dec. 31 '30. Dec. 31 '29. Dec. 31 '28
Resources-Loans on collateral
5301.125
$154,932
$310,563
Loans on real estate
149,585
218,065
173,680
Other negotiable and non-negotiable
110,665
2,088
paper and Investment securities....
2,353
6.320
1,607
Overdrafts
1,439
213,103
Bonds and stocks
210,325
314.077
3,600
1.800
Stocks In Fed, Res. Bank, St. Louis.
14,105
15.829
16,176
Furniture and fixtures
Safety deposit vaults
11.886
11.386
10,886
Real estate other than banking house
6,100
5,000
Due from Fed. Res. and other banks65,600
39,250
54,006
Cash on hand
14.920
43.542
14,848
All other resources
5.124
2,898
2.471
Total
3859,154
$914,094
$737,306
Liabilities$50,000
Capital stock paid In
3100.000
3100,000
Surplus
10,000
20,000
20,000
Undivided profits
3.116
6,035
143
Reserved for taxes, interest, &c
2.000
2,500
Demand deposits
425,169
385.593
333,364
Cashiers' checks
5.2991
7,922
Certificate of deposit
192,776
17,674
23,974
3142,453,103 3144177,056 Savings
Total
215,642
deposits
176,480
* On May 18 1929 the Mercantile Trust Co. merged with National Bank State and municipal deposits
7,500
7,746
Co.
Bank
&
Mercantile-Commerce
Trust
of Commerce under name of
Bills payable and rediscounts
165,000
102,000
65,000
Trust department deposit account....
57,710
177
7.404
Suspense account
*Mississippi Valley Trust Co. (St. Louis).
Dec. 31 '30. Dec. 31 '29.
Total
Resources$914,094
$559,154
$737,306
$14.552,041 $10,586,664
Stocks and bonds
3,263,184 3,702,630
U. S. bonds and certificates of indebtedness
The Savings Trust Co.(St. Louis).
702,395
1.524,689
Loans on real estate
ResourcesLoans on collateral
28,944,904 38,269,063
Dec. 31 '30. Dec. 31 '29. Dec.31 '28.
Time
loans
Other negotiable and non-negotiable paper
$981,115 81.143.913 81.340,811
19,040,737 18,008,600
Customers' liability on acceptances
868.910
1,001.261
315,931 Loans on real estate
1,020.370
386,626
Real estate
680.768
1,123,584 Bonds
685.994
779,0171
1,109,871
Cash on hand
300,000
863.4371
17,869,159 17,978.016 United States Government bonds....
Stock In Federal Reserve bank
Cash on deposit
7,500
7.500
7,500
Other resources
475.187 Bank building
113.700
876.694
100,0001
125.9001
Safe-deposit
1
80.299
vaults,
fixtures_
85,987J
fern.
&
Total
•
$87,567,905 $91.162,070 Due fr. tr. cos., bks., bkrs. & brokers
350.863
409,385
226,298
LiabilitiesChocks and other cash items
27,317
113,674
168,813
Capital stock
$6,000,000 $6,000,000 Cash on hand
116.627
39,812
140,828
Surplus fund
2,500,000 2,500,000 Other assets
26.000
26.500
Undivided profits
1,303.061
1.264.299
Deposits ravings)
6.908.664 6,687.332
Total
$4,279.741 $3,406,320 $4.134.039
Deposits time)
13,853.359 11,897,706
LiabilitiesDeposits demand)
56,329,537 60,820,739 Capital stock paid In
3200.000
3200.000
$200,000
Government
bonds borrowed
United States
1,215,01)0 Surplus and undivided Proril-s
141.039
110.748
180,833
Acceptances and letters of credit
386,627
315,931 Deposits subject to draft
1,839,754 1,866.387 2,465.219
Accrued interest and taxes
128,885
199,891 Time certificates of deposit
134.937
149,466
618,170
Other liabilities
157.772
222,166 Savings deposits
917.719
942.844
840,984
Total
162,000
600,000
250.000
587,561,905 $91,162,070 Bills payable
• Mississippi Valley Trust Co., Merchants-Laclede National Bank and
$4,279,711 $3,406.320 54.134,039
Total
State National Bank consolidated as of July 1 1929, with name of Mississippi Valley-Merchants State Trust Co. Name changed to Mississippi
Valley Trust Co.
Security National Bank Savings & Trust Co.(St. Louis).
Dec. 31' 30. Dec. 31 '29. Dec. 31 '28.
Resources-Mound City Trust Co. (St. Louis).
Loans
51,870,374 31,747,812 51,862,423
1.592
635
536
ResourcesDec. 10 '30. Dec. 31 '29. Dec. 31 '28. Overdrafts
895,688 2,706.427
2,274,159
and stocks
Loans and discounts
$1,255,810 31.330.209 $1,540,231 Bonds
15,000
Stock
11,250
15,000
In
Ned,
LoutsSt.
Res.
Bank,
Bonds and stocks
579.627
599,058
639,407 Real estate (company office building)
325.444
324,887
306,272
Real estate
54.539
48,825
3,907 U. S. Govt. certifs, of indebtedness
Cash and exchange
323,290
344,137
414,216
9,658.413
7,766,738
and
310.875
Liberty
bonds
Loan
14,000
Safe deposit vault and fixtures
15,000
17,000
3,555,596 3,292.142
Cash and due from banks
1.586,399
Other resources
88
210
10 Five per cent redemption fund
5,000
Total
$2,227.554 12,337,439 $2,664,771 Due from customers acct.secs. purch.
27,142
Liabihties4,156
Insurance premiums prepaid
$200.000
Capital stock
$200,000
77,109
70,634
102,935
$200,000 Interest and commissions accrued50.000
Surplus
50.000
50.000
14,212
Undivided profits
517,819,583 514.121.525 37.173,530
10.000
Total
5,000
1,926,502 2,050,001
Deosits
p
Liabilities2,338,038
$350,000
5350,000
Bills payable and rediscounts
$350.000
50,000 Capital stock
36,840
Reserves. depreciation, &c
27.438
150,000
150,000
150.1.00
21,733 Surplus
110.547
160,756
54,690
$2,227,554 32,337,439 32.664.7-71 Undivided profits
Total
U. S. Goveniment bonds borrowed.- 1,500,000
U.S.bonds sold with re-purch. agree't 3,067.025
North St. Louis Trust Co. (St. Louis).
102,855
53,649
Reserve for interest and taxes
74.156
5,052,465 6.143,589
Dec. 31 '30. Dec. 31 '29. Dec. 31 '28. Board of Education deposits
ReSOUrCeS-743,284) 7,168,013 6.447.484
$888,545
5909,989 11,063,794 U.S. Govt.,State and city deposits.Bonds and stocks
6.308.012
other deposits
1,483.523
Loans and discounts
1,639,758
1.689,094 All
Bills payable
335,000
Due from Federal Reserve and other
1.141
Other reserves
283.199
247,480
banks and cash on band_
280,588
97.600
95,380
Real game,furniture and fixtures
outstanding
Circulating
67.701
notes
97,200
66.826
69.459 Unearned
1.792
18.892
discount
17.846
Other resources
19,961
$2.741,860
Total
82,881,894 33.122,896
Total
$17,819,583 $14.121.525 87.173.530
FINANCIAL CHRONICLE
1558
*Shaw Bank & Trust Co.
Resources-Loans and discounts
Bonds
Federal Reserve Bank stock
Overdrafts
Banking house,furniture and fixtures
Cash and due from banks
Collections
Dec. 31 30.
3712.063
471,438
8.400
61
105,000
209,954
410
$1,505,317
Total
LiabilitiesCapital stock
Surplus
Undivided profits
Deposits
Cashier's checks
Bills payable
$200.000
80.000
6.417
1,158.944
14,955
45,000
$1,505,317
Total
*Began business May 5 1923 as the Shaw Bank.
Tower Grove Bank 8; Trust Co. (St. Louis).
ResourcesLoans on collateral
Loans on real estate
Overdrafts
Bonds and stock
Stocks in Federal Reserve Bank. St. Louis
Real estate (company's office building)
Other real estate
U. S. Government certificates of indebtedness
U. S. Liberty bonds
Safety deposit vaults
Due from Fed. Res. Bank, other trust companies and banks
Checks and other cash items
Cash on hand
Other resources
Furniture and fixtures
Total
LiabilitiesCapital stock paid in
Surplus
Undivided profits less expenses and taxes paid
Reserved for taxes
Reserved for interest
Reserved for dividends
Deposits subject to draft
Time certificates of deposit
Demand certificates of deposit
Savings deposits
Cashier's checks
Bills payable and rediscounts
Other liabilities
Total
Dec. 31 '30.
36,941.638
1.092,025
3,326
2,027,556
24,000
160,639
7.343
207.416
24.123
49.931
830,043
25,485
100.394
634.441
76.227
[Vox.. 182.
*United Bank & Trust Co. (St. Louis).
Dec. 31 30. Dec. 31 29.
Resources35.343,839 86,236,596
Loans and discounts
974,538 1,325,621
U. S. Government bonds and securities
988.313
2,314.700
Other bonds and securities
51.000
45.000
Stock of Federal Reserve Bank
1.029
1.124
Overdrafts
40,000
Safe deposit vaults, furniture and fixtures
22,583
195,588
Other real estate
Cash on hand and due from Fed. Res. & other bks- 1.476,835 1.448,707
46,151
14,486
Letters of credit
40.276
Other resources
$10,160,000
$10,441,388
Total
Liabilities81.000,000 81,000.000
Capital
500.000
500.000
Surplus
101.972
83.463
Undivided profits
20,000
50.926
General reserve
9,904
Interest due on demand deposits
46,151
14.487
Letters of credit
4,903,505
5,280,551
Individual deposits
2,822.396 2,800,386
Time deposits
278,082
197.096
Bank deposits_ -..
500,000
400.000
Deposits by City of St. Louis
85.000
Government deposits
7,467
Unearned discount
$10.441.386 $10,160,000
Total
* Broadway Trust Co. consolidated with United States Bank as of Aug. 1
1929 under name of United States Bank & Trust Co. and later changed
to United Bank & Trust Co.
West St. Louis Trust Co. (St. Louis).
Dec. 31 '30. Dec. 31 '29. Dec. 31 '28.
Resources$410,559
$376.540
$280,145
Loans on collateral security
376.732
350,008
251.729
Loans on real estate security
1,502,000
1,467.000
1,508,000
Bonds and stocks
897,781
762,834
522,920
Bills receivable
96,600
92,028
80,0001
Real estate (banking house)
16,8681
Other real estate owned
29,291
28.055
27,838
Furniture and fixtures
417,525
221,8711
190,531
$12,204,588 Due from trust cos. and banks
117,0661
112,093
Cash on hand and other cash items__ _
6.270
12.010
7,439
$500,000 /they resources
3'.0,000
$2,997,563 $3.427,412 83,738,758
Total
365.923
Liabilities$200,000
22.739 %pita'
$200,000
$200,000
100,000
100.000
14,000 Surplus stock
100,000
68,992
10.000 Undivided profits
73.018
60,211
4.516.817 Deposits by individuals and others in1,298,695
970.302
1,146,652
2,214,943
deposit
of
certifs.
demand
cluding
351.941
373,204
112,015
322,368
certificates of deposit
3,244,936 Time
1,134,667 1,314,986 1,468.013
deposits
14.868
7,928
10,017
125,396 Savings
depreciation
Res, for int. taxes &
230,000
210,000
250,000 Bills
200,000
4.239
1,624
527,819 Otherpayable
liabilities
$2,997,563 $3,427,412 33,736,758
Total
$12,204.588
CHICAGO COMPANIES
*Continental Illinois Bank 83 Trust Co. (Chicago).
Dec. 31 '29. Dec. 31 '28.
$209457687 $81.989.093
82,958.195 54,678.242
103.629.558 31.471.212
291,536.039 103.026,017
385,962.007 85,348.600
4.2110.000 1,350.000
1
15.000.000
230.055
26.959,368 18.988.425
38,792,490 12.340.436
34,325.143
3.552.658 1,8430534
$124924414431176603194 $4469830859
Dec. 31 '30.
ResourcesCash on hand and due from banks--$208925367
U. S. Govt. bonds and Treasury ctfs_ 154,733,282
110,843.110
Bonds and other securities
261.741.265
Demand loans
379.534,948
Time loans
4,200,000
Stock In Federal Reserve Bank
15.000,000
Bank building
260,359
Other real estate
20,454.330
Cust, nab. under letters of credit
Customers' flab. under acceptances 36,499.354
53,740.692
Other banks'lia,on bills pur.& sold
3,511,437
Interest accrued but not collected
Total
Liabilities875.000,000 875,000.000 $15,000,000
Capital stock paid in
65.000,000 65.000.000 30.000,000
Surplus
693,248,632 665.197.7261373.640.549
Demand deposits
271,219,508 213.595,1921
Time deposits
7,189,636 5.879.584 2.558,981
Undivided profits
10,000,000 10,000.000 5,000.000
Contingent fund
3,000,000 3,000,900
900.780
Dividends reserve
11,283,174 7.021,613 3,020,401
Reserved for taxes and Interest
2,306,574 5,000.000
Other reserves
21,430.216 28,147.974' 19.036,253
Letters of credit
36,973,867 38.943.012 12.350.914
Acceptances
Liability on bills purchased & sold -• 53,740.692 34.325.143
1.646,376
822.481
Discount collected hut not earned_ _ - 1.158,419
29,500.000 2,500.000
Bills payable Federal Reserve Bank_
$1219244144 1176f.,03194 $469830859
Total
Central Trust Co. of Illinois (Chicago) Concluded.
1927.
1928.
Years(As of Dec.31)- 1930.
0,9600 38.000.000 36.000,000
02
19
$12,000,000 $12.0
al (par $100)
Cuarlapiltus
s
4.000,000
6.000,000
8,000.000
8.000.000
1.149.140
3,530,690 3,513.8.59 2,065,164
Undivided profits
139.712,758 149.027.068 114,560.352 108,268.698
Total deposits
1,244,000
1.756.000
1,882.000
1,456,000
*Net earnings
*Net earns, per sh. (on
$20.70
.01
$26.01
$15.70
$12.13
average cap. outstdg.)
*Earnings on average in$81.9080
$6.20
capital
vested
62
1.8
0
$13205$11
196
*Book value, Dec. 31
a
D te divs.pay.: Jan. 1,
Apr. 1. July 1.°Mi.12%
12%
12%
127
Di (lends paid
2%
25f
2%
2 o
aDividends paid
Price range of stock$475
$435
High
299
3
400
7
$785$
350
Low
include earnings of the Central-Illinois
*Figures for 1929 and 1930 do notcompany
formed July 1929 by a union of
Co.,the bank's associate investment
bond department of the Central Trust Co.
the Federal Securities Corp., theFigures
prior to that time include only the
Co.
and the Central Securities
Co. The above figures also do not
Trust
Central
the
of
department
bond
Securities Corp. which has
Illinois
CentralInclude the earnings of the
outstanding, 600,000 shares of which is
1,000,000 shares common stock
Co.
-Illinois
Central
held by the
share of Central Trust Co. stock
a Paid by Central-Illinois Co., each
share of Central-Illinois Co. stock held
having a beneficial interest in one
paid by Central Securities Co.
dividend
in trust. Prior to July 1929 said
Equitable Trust Co. of Chicago..
Dec. 31 '30. Dec. 31 '29. Dec. 31 '28.
$632,893
3638.941
$422,847
National Bank & Trust Cash .
414,076
295.242
245,293
* Formed by consolidation of the Continental
for business March 18 Bonds
opened
Co.
Trust
2.462,485
Merchants
2,358.890
Illinois
1,666,613
the
and
Co.
discounts
31 1929 and 1930 are for both companies. Loans and
123,500
125,554
75,0001
1929. Above figures for Dec. the
house
Banking
Illinois Merchants Trust Co.alone.
55,7501
For Dec. 31 1928 results are for
Other real estate
15.143
98
13:27568
03
83
:5
89
12
Furniture and fixtures
10,703
Interest earned
*Central Trust Co. of Illinois (Chicago).
1,600
credit
on letters of
liability
Customers'
Dec. 31 '30. *Dee. 31 '29. Dec. 31 '28.
Resources-182.488.345 $3.441.669 $3,658,800
358,872.794 358.540,565 $440.998,235
Total
Time loans
48,841.738 50.548.900 38.963.493
LiabilitiesDemand loans
3250.000
3350.000
$350,000
4.555.775
2.148.014
3,905,066
stock
Capital
loans
50,000
, Real estate
50.000
50,000
9,987,750 16,464.684 17,860.162 Surplus
35,310
U. S. Government securities
41.321
26.797
11,492,865 6,306,596 7.812.123 Undivided profits
10.716
Bonds and stocks
57,250
19,426
600,000
420.000
600,000
Chic..
Bank,
Reserves
Res.
Capital stk. of Fed.
150,000
775.000 Bills payable
Bank premises
2,926
1
Unearned discount
Customers' Habil. on letters of credit_ 5,541,397 3.906,7791 1,020.406
1,600
2.134.004 Liability under letters of credit
Customers' liability on acceptances...132417,232 36.596,106 30,317.151
2,037,696 2,793,098 3,312,774
Deposits
(lash and sight exchange
Other resources
132,488,345 33.441.669 $3,658,800
Total
3170138768 3177,898,9683142,446,558
Total
Bank (Chicago).
Savings
First Union Trust and
Liabilities$12,000,000 312.000.000 $8.000.000
Jan. 2 '29.
Jan. 2'31. *Dec. 31 29. $12,298.211
Capital
Resources8,000,000
8.000,000
8,000,000
$18,815,118 $14,682,675
Surplus
3,530.690 3,513,858 2,065.164 Cash and due from banks
86,720,382
93,871,170
38,564.2641
Undivided profits
1.451.263
250,000 Time loans and discounts
1,353.923
..
56,682.8211
Contingent reservefund
675.655 Demand loans
45.80E1.941
38.396.785
61.687.684
rteserved for taxes and interest
362.945
241.008 Stocks and bonds
363,659
410,148
696,043
506,368
Dividend account
7.500,000 Otner assets
Bills payable
$145,243.682
1 5,541,397 3,906,7791 1,031.621
$147,648,673
255
$176256
Letters of credit outstanding
Total
2,134,004
Acceptances executed for customers _ -1
Liabilities,
•
•
$7,500,000 $7,500.000 87,500,000
Special deposits
Capital stock paid in
24,310.08
/114,549,137
35,861,126
7.500,000 7,600,000
7,500.000
Time deposits
Surplus fund
114,229.076j
103,487.973
6.238.779 6,407,144
6,472,611
Demand deposits
Undivided profits
116,904.712 115.117,077
150,022,230
$170138768 3177.898,9683142.446.588 Deposits
2,821,336 2,864.359 2.219.268
Total
3.300.000
Reserved for interest and taxes
April 22 1929. Figures above Billsyable
1,120,150
* Consolidated with Bank of America as of
For
Dec.
31
institutions.
credit
1928
1.092,981
Liabi ty under letter of
for Dec. 31 1929 and 1930 are for the two
5.050.000
bills, soldbanks
other
987.062
on
alone.
Liability
Co.
Trust
Central
for
are
figures
1.940,078 1.590.825
incorporated under laws Other liabilities
Corporate name. Central Trust Co. of Illinois:
3145,243,682
member
charter
memberships:
3147.648,673
255
$176256
1902:
3
July
of Illinois: date of incorporation.
Total
American Bankers
Dank and the Union
Federal Reserve System, Illinois Bankers Association.
• Consolidation in 1929 of First Trust & Savings
Association. Subsidiaries. Central-Iillnois Co., Chicago Safe Deposit Trust
Co.
Co.. Central-Illinois Securities Corp.
Resources-
FEB. 28 1931.]
FINANCIAL CI:IRON:04E
*(The) Foreman-State Trust & Savings Bank (Chicago)
ROSOUrCe3-Dec. 31 '30. Dec. 31 29. Dec. 31 '28.
Cash on hand and on deposit
$10,653,591 17.373.716 $5.830,418
Loans and discounts
23,033.731
24,891.386 8,402,301
Bonds and securities
5,898,198
4.255,527 5,336,960
Total
$39,585,520 136.520.629 119.569.679
Liabilities—
Capital stock paid in
$2,500,000 12.500.000 $2,000,000
Surplus
2,500,000
2.530.000 1,000.000
Undivided profits
607,998
524,816
972.544
Deposits
32,280,822 29,996,847 15.276.249
Interim certificates
514,783
1,104.414
Unearned interest
66,136
73.765
19.650
Reserves, incl. taxes and interest__-526,151
410.418
301,236
Total
339,585,520 *36.5.0.6-9 119.619.679
•Consolidation of the Foreman National Bank. the Foreman
&
Savings Bank and the State Bank effected in Nov. 1929 formingTrust
two institutions—the Foreman-State National Bank and the Foreman
-State
Trust & Savings Bank. The above figures for Dec. 31 1929 and 1930
are
for the new trust company while Dec. 31 1928 figures are for the Foreman
Trust & Savings Bank alone.
Harris Trust & Savings Bank (Chicago).
Resources—
Dec. 31 '30. Dec. 31 29. Dec. 31 '28.
Cash on hand and due from banks--$21.818.
918 320.842.440 $22.259,119
Demand loans
14.601,4271 5o,..,06,224 48,035,266
Time loans and bills discounted
42.89o,3011
United States Government securities- 18,080.074
State and municipal securities
12,402,363 27,129.355 28,687,075
Other bonds and securities
8,321,188
Federal Reserve Bank stock
330,000
Customers liability on acceptances
and letters of cretht
1.084.188
4.830.682
1.384,139
Total
$123,279.9521105652213 1100.365.599
Liabilities—
Capital stock paid in
$6,000,000 $6,000.000 14,000,000
Surplus
5,000,000 5.000.000 5.000,000
Undivided profits
2,693,240 2,012.541
2,261,898
Deposits
103,219,747 89,963,541 86.468,861
Reserve for taxes,interest, &c
1,592,432 1.250.701
1,536,283
Acceptances and letters of credit
4.830,68
1,084.1881,384.139
Total
$123,279.952$105.652.213$100,365.599
Study by National Industrial Conference Board of
Attitude of United States and Germany Toward
Industry.
Sharp contrasts between the attitudes of Government
toward industry in two of the world's leading industrial
nations, the United States and Germany, are revealed in an
exhaustive, scientific study of Germany's industrial system
just completed and published by the National Industrial Conference Board. The report, entitled "Rationalization of
German Industry", describes the industrial structure of
Germany from the point of view of production and distribution and points out the extent to which German industrialists
are free to compete or combine without interference on the
part of the State. That its statements and conclusions are
authoritative may be inferred from the comment of Dr.
Walter Simons of Leipsic, former Chief Justice and Acting
President of the German Republic who, on his recent visit
to the United States read the manuscript. Dr. Simons said:
The exposition of the rationalization effected in Germany after the War'
of its causes, methods and merits is a very exhaustive, clear and judicious
one. The summing up seems to me most valuable as a sound analysis of
Germany's actual economic position from the point of view of a creditor
nation.
The Board says that in the United States the acceptance
of a common program for controlling production is prohibited
by law; in other countries the independent producers may
lawfully enter into an agreement concerning their production,
price, and market policies, but cannot enforce that agreement
of law. Germany offers the example of a country where
such agreements are not only permissible but also enforceable
at law. The Board points out that when it is considered
that only seven years ago the French army was in the Ruhr,
the German mark was hardly worth the paper on which it
was printed, and Government finances were completely
disorganized, it seems well worth while to inquire into the
methods of industrial reorganization that have brought order
out of chaos and made Germany to-day one of the strongest
industrial countries in Europe. The whole process is summed
up in the term "rationalization." This word originated in
Germany, where it has become a sort of slogan. Under the
hands-off policy of the State the development of the idea
has been rapid, spreading to all aspects of the economic
problems involved. In its study the Board says:
The aim of rationalization is to eliminate that competition which results
from faulty judgment of individual producers, from their miscalculations
of the market, and to co-ordinate the efforts, first, of individu .1 enterprises
within an industry; second, of the different enterprises within a country,
and,finally, of the competing industries in two or more countries. Rationalization, in its broadest sense aims to eliminate errors of judgment due
to faulty knowledge of market conditions by vesting the power to regulate
production, fix prices, and allocate territories in a central authority.
Rationalization, represents the idea of enlightened leadership
embracing
an entire industry in its relation to other industries and to the National
economy.
The logical following out of this rationalization idea, says
the Board, has led, in Germany, to the development of
numerous associations of various forms and purposes.
Freedom of trade in Germany means not only the freedom
to compete at will but the freedom to combine. The so-
1559
The Northern Trust Co.(Chicago).
Resources—
Dec. 31 '30. Dec. 31 29. Dec. 31 '28
Time loans secured by collateral
$13,280.622 $14,968.842
Demand loans secured by collateral $11,141,472
16.401.848 21.200.808 24,732.280
Other loans and discounts
6,833,364 7.110.607 6,164,897
Bonds and securities
22,132,402 10,026,317 11.173.576
Federal Reserve bank stock
270,000
150,030
150,000
Bank premises
Liability of other banks on bills pur- 10100,000 1,400.000 1.400.000
chased
346,646
Customers' liability under letters of
credit and acceptance
920,230
1.010.694
1,130,813
Cash and due from banks
18,832.965 14,868,929 19,279,961
Total
$77,932,281 169.394,623 179,000,169
Liabilities—
Capital stock
$3,000.000 $2,001.000 $2,000,000
Surplus fund
6,000,000 3,000.000 3,000,000
Undivided profits
3,319,351
4.033.736 3,503,390
Dividends unpaid _
135,000
120,338
80.302
Reserved for taxes, interest, &c
1,346,985 2,220,083 2,471,818
Discount collected but not earned
113,554
160,851
167,772
Contingent liability on other banks'
bills sold
346,646
Letters of credit & acceptance outstdg.
941,860
1,976.122
1,176.246
Deposits
63,075,531 56,466,847 66,600,641
Total
$77,932,281 $69,394.623 V79,000,169
The Peoples Trust & Savings Bank (Chicago).
Resources—
Dec. 31 '30. Dec. :31 29. Dec. 31 '28.
Loans
$21,396,053 825.528.476 $20,790,821
Cash on hand and due from banks
7,369,138 5,139.267 5.946,010
Bonds and securities
4,191,779
1,998,478 4,004,142
Furniture & fixtures
107.684
121.184
140.132
Customers liability on letters of credit
41,980
61.510
56.461
Overdrafts
".R'1
2.439
4.036
Total
533,iusa.s5 1.12.0.15.S54 $30,941,602
Liabilities—
Capital stock paid in
$2,500,000 $2,500,000 11,000.000
Surplus on hand
1.000,000
1.000.000
500.000
ndivid profitsUed
531,296
501.522
378,557
Deposits
28,368.503 27.926.386 28.736,233
Reserve for taxes, interest, &c
662.484
840,274
263,081
Liability in letters of credit
47,002
76.172
63.731
Total
$33.109,285 132.844.354 130.941.602
called "cartel" is the most prevalent form of association'
Cartels may be divided into six groups, according to their
purpose: associations for regulating prices; associations for
regulating output; profit-pooling associations; associations
for allocating contracts; selling syndicates; and associations
for apportionment of territories.
While the organization of cartels may be of a more or less
temporary nature there are also certain other associations
of a permanent character, such as mergers and combines.
There is still one more form of combination known as "communities of interest." The workings and advantages or
disadvantages of all of these various types of industrial
combinations are fully described in the Conference Board
report.
A final chapter of the report points out that the principal
aim of the feverish reorganization of German industry during
the past six years was to increase Germany's competitive
ability in foreign markets, in order to enable her to discharge
her war obligations by means of an export surplus. "Whether
or how soon Germany will be able to develop a surplus of
exports in order to pay both reparations and interest charges,
it is not possible to say" states the Conference Board,
"because it depends not only on Germany but also on the purchasing power and tariff policies of foreign countries. The
improvements in Germany's balance of payments during the
past few years has been steady and considerable.
The deficit
that had to be made up by foreign loans has been
steadily
decreasing and in 1930 Germany had a large surplus of exports
on merchandise account."
THE WEEK ON THE NEW YORK STOCK EXCHANGE.
There has been further manifestation of strength in the
New York stock market the present week and with
the
exception of rather heavy selling on Wednesday, during
which many active shares moved downward on profit taking,
stocks have been fairly buoyant, particularly on Tuesday
when transactions were the heaviest since last October.
About 837 issues were dealt in, of which 325 stocks reached
new peaks for the current year. On Saturday the specialtie
s
attracted considerable speculative buying, and following
the two-day holiday, public utilities were in active demand,
though there was also a moderate amount of buying of
steel shares and motor issues. The weekly statemen
t of
the Federal Reserve Bank issued after the close of
business
on Thursday showed a further increase of $26,000,0
00 in
brokers' loans making the third successive increase in 82
many weeks. Call money renewed at 13/2% on
remained unchanged during the rest of the week. Tuesday,
New top levels for the year were recorded in many important stocks during the abbreviated session on
Saturday
and in spite of the fact that the market was
to be closed
on Monday, comparatively little realizing
was
Public utilities were active and strong and apparent.
substantial
•
1560
FINANCIAL CHRONICLE
[VOL. 132.
The market was generally higher on Friday and most of
advances were recorded by Standard Gas & Electric, Amerithe
&
leading stocks gave a good account of themselves. Concan Power & Light, Consolidated Gas, Electric Power
New
siderable
irregularity was apparent, however, the unsettleof
Service
Public
and
Works
Water
Light, American
gains
due in part to the switching of speculative
ment
being
moderate
though
Jersey. Railway shares were quiet,
Haven,
one group to another. Public utilities were
from
interests
New
Central,
York
New
Atchison,
by
made
were
speculative stocks and substantial gains
Copper
the
again
favorite
Pacific.
Union
and
Wabash, Baltimore & Ohio
several prominent issues in this group.
by
increased
were
registered
by
stocks were higher, being helped to some extent
the market slowed down and closed
As
progressed
Corporation
the
day
Radio
abroad.
quotations
higher
demand and
or losses.
gains
closed
worthy
note
without
and
attention
attracted considerable speculative
TRANSACTIONS AT THE NEW YORK STOCK EXCHANGE
with a net advance of 2 points. American Can was one of
DAILY. WEEKLY AND YEARLY.
the strong issues of the pivotal stocks and advanced steadily
128.
at
points
3
of
Total
United
State,
Railroad,
throughout the session, closing with a gain
Stocks,
Bond
Stales
Municipal &
&c.,
Number of
Week Ended
The New York Stock Exchange, the Curb market and com- Feb.
Sales.
Bonds.
leen Bonds.
Bonds.
Shares.
27 1931.
modity markets were closed on Monday, Feb. 23, in cele$119,000 $4,964,000
2,434,840 $2,997,000 51.848,000
Saturday
HOLIDAY
bration of Washington's Birthday, which this year fell on Monday
3,622,000
449,000 9,268,500
5,197,500
5,345,710
1,797,000 9,624,000
2,923,000
Sunday. The market maintained a buoyant tone during Tuesday
4,904,000
4.388,062
Wednesday
1,311,000
9,758,000
2,975,000
realizing
5,472,000
some
whole
4,623,239
and
Thursday__
most of the session on Tuesday,
2,392,000
693,000 8,588,000
5,503,000
3,724,674
Friday
figures
final
the
hour,
closing
the
toward
evidence
in
was
20,516.325 $24,073,500 $13,780,000 $4,369,000 $42,202,500
Total
were in most cases at higher levels. The trading was the
hours,
morning
Jan. 1 to Feb. 27.
Week Ended Feb. 27.
Sales at
heaviest since last October and during the
Neu) York Stout
1931.
1930.
1930.
the new high-speed tickers were frequently several minutes
1931.
Exchange.
behind the transactions on the floor. Approximately 837 Stocks-No,of shares_ 20,516,325 13,601,600
104,937,343
130,162,390
Bonds.
issues were dealt in, of which 325 stocks established new
$36,323,400
$16,445,100
$4,369,000 $1,687,000
Government bonds_ _
104,712,500
117,811,500
10.610,000
top levels for the year. The outstanding changes on the State & foreign bonds. 13,760,000 30,619,000
283,776,000
286,191,500
24,073,500
Co.
Machine
&
bonds
Threshing
misc.
Railroad
Case
I.
J.
side of the advance were
$404,933,600
5440,326,400
points to 1103, Total bonds
$42,202,500 $42,916,000
534 Points to 1293', Columbian Carbon 5
to
5
points
Aero
Wright
84,
to
points
6/
Rayon
Industrial
DAILY TRANSACTIONS AT THE BOSTON. PHILADELPHIA AND
BALTIMORE EXCHANGES.
35, and International Silver 6 points to 40. United States
a
with
1493's,
at
and
closed
peak
its
at
150
crossed
Steel
•
Philadelphia.
Baltimore.
Boston.
fractional gain for the day. Public utilities moved to the
Week Ended
Shares. BondScaes. Shares, BondSales.
BondEales.
Shares.
27
Feb.
1931.
by
front in the early trading and sharp gains were recorded
$53,000
1.436
$33,000
$4,000 a54.350
26,162
Standard Gas & Electric, American Water Works, American Saturday
HOLI DAY
Monday
31,100
42,200
2,060
a97,340
California
Edison,
10,000
Southern
Gas,
92,270
Tuesday
Power & Light, Columbia
18,200
27,500
1.624
14,000 a81,035
62,336
Wednesday
91,930
2,889
27,100
11,000
12,000
Public Service of New Jersey and Detroit Edison. Railroad Thursday
54,087
22,000
1,190
9,745
6,000
16,490
Friday
were
by
gains
recorded
good
and
stronger
shares were
$99,400
9,199 $155,700
$46,000 244,400
251,345
Total
Northern Pacific, Wabash, New York & Harlem and Atlantic
Coast Line, and while many other prominent issues were Prey, week revised 235.044 $32,100 203,044 $271,600 6,869 $55,900
4 a In addition, sales of warrants were: Saturday, 400; Tuesday, 900; Wednesday:
fractionally higher, Eastman Kodak advanced about 93
Coca Cola 33' points to 169, Radio Corpora- 600.
points to 185
tion 33/i points to 263/2, Sloss Sheffield 5 points to 243,
COURSE OF BANK CLEARINGS.
and St. Louis Southern preferred 15 points to 60. Copper
Bank clearings this week will show a decrease as comissues were unusually ,strong, Anaconda moving up about
figures complied by us,
2 points, followed by Cerro de Pasco, Kennecott, American pared with a year ago. Preliminary
Smelting and Calumet & Arizona, all of which established based upon telegraphic advices from the chief cities of the
ended to-day (Saturday,
new 1931 levels. In the final hour, Auburn Motors slipped country, indicate that for the week
cities of the United
the
all
for
2
exchanges
nearly
of
loss
a
bank
28)
points.
Feb.
down to 200 and closed with
weekly returns will
Prices on the stock exchange moved lower on Wednesday 'States from which it is possible to obtain
g week last year.
correspondin
the
for
those
taking
profits,
below
traders
and
while
36.6%
be
to
many
measure
due in a
65, against
the net losses in the active list ranged from one to five or Our preliminary total stands at $7,514,977,7
in 1929. At this centre
week
same
the
for
218
movements
occasional
$11,852,036,
the
against
were
there
points,
more
trend, particularly in the mail order section. Montgomery there is a loss for the five days ended Friday of 34.5%.
Ward, for instance, advanced 3/ points to 29, while Sears, Our comparative summary for the week follows:
Roebuck scored a similar gain to 62/. Public utilities
Per
Clearings-Returns Si' Telegraph.
1931.
1930.
Cent.
Week Ended Feb. 27.
were strong during the early trading but fell off sharply
$3,890,871,160 $5,942,000,000 -34.5
near the close. In the merchandising group, Macy, and New York
299,456,446
506,945,531 -40.9
Chicago
Abraham & Straus closed on the side of the advance. On Philadelphia
289,000,000
513,000,000 -43.7
437,000.000 -54.7
242,000,000
Thursday the market resumed its advance and stocks moved Boston
62,180,700
115,920,433 -46.4
Kansas City
64,000,000
108,800,000 -52.3
sharply upward from 2to 14 or more pts. In the closing hour St. Louis
99,625.000
178,999,000 -44.3
San
Francisco
day,
and
a
the
long list of
the.market was at its best for
Will no longer re port clearings.
Los Angeles
163,407,487 -36.5
103,739,531
for
records
high
the
new
year.
registered
Pittsburgh
stocks
active
90,476,524
182,887,899 -50.6
Detroit
120,661,601 -42.0
70,082,758
United States Steel was an outstanding feature as it pushed Cleveland
81,864,089 -37.5
51,136,660
Baltimore
46,534,128 +25.8
58,550,200
vigorously upward and recorded a new high for the year at New Orleans
General
Motors
points.
was
four
anof
gain
1525A with a
$5.321,118,999 68,398.020,188 -36.6
Twelve cities, five days
949,682,315 -17.4
774,695,805
other noteworthy strong stock and sold in large blocks up Other cities, five days
453/8.
at
Auburn
year
Motors
was
the
-34.8
$6.095,814,804
for
$9,347,702,483
high
days
cities.
Total
five
all
to a new
2,504,333,735 -43.3
1,419,162,961
All cities, one day
again the sensational feature as it jumped to 217, scoring
$7,514,977,765 $11.852.036 218 -36.6
Total all cities for week
a gain of 143/, points on the day. Other active stocks in the
of
for the week covered by the
the
side
details
the
advance
on
exact
were
closing
and
Complete
industrial group
Westinghouse which gained 23/i points to 107/, and Gen- foregoing will appear in our issue of next week. We cannot
eral Electric which advanced 2 points to 54/. Public furnish them to-day, inasmuch as the week ends to-day
utilities as a group attracted the most of the speculative (Saturday) and the Saturday figures will not be available
attention, many of the active issues breaking into new high until noon to-day. Accordingly, in the above the last day
ground at some period during the day.. The power and of the week had to be in all cases estimated.
In the elaborate detailed statement, however, which we
light section was especially active, American Water Works
for
the
demand
while
further below, we are able to give final and complete
points,
Standard
present
six
about
shooting up
-the week ended Feb. 21. For
Gas & Electric pushed that issue up about five points. results for the week previous
of 0.4%, but this is due to the
increase
such
included
an
active
is
issues
there
group
week
that
the
of
stocks
strong
Other
Birthday
fell in this week last year,
Gas,
Washington's
American
&
Power
Consolidated
fact
that
as Pacific Lighting,
it came in the following week, the
Light, Electric Power & Light, National Power & Light, while the present year
for the whole country being $8,931,American & Foreign Power and United Corporation. Rail- aggregate of clearings
53 in the same week of 1930.
$8,896,584,0
gains
but
against
ranging
from
mixed,
268,053,
road stocks were somewhat
one to three or more points were recorded by such active Outside of this city there is a decrease of 9.0%, while the
We
issues as Atchison, Delaware & Hudson, New York Central, bank clearings at this centre record a gain of 6.2%.
to
Federal
according
the
now
Reserve
cities
group the
and Norfolk and Western.
f„
FEB. 28 1931.]
FINANCIAL CHRONICLE
Districts in which they are located, and from this it appears
that in the New York Reserve District, including this city,
the totals show a gain of 6.0%, but in the Boston Reserve
District there is a loss of 4.4% and in the PhiladelphiaReserve
District of 11.2%. In the Cleveland Reserve District there
is a decrase, but it is trifling, being 0.1%, and in the Richmond Reserve District of 4.0%, while in the Atlanta Reserve
District the totals show an increase of 0.7%. The Chicago
Reserve District shows a contraction of 16.3% and the St.
Louis Reserve District of 22.0%, while in the Minneapolis
Reserve District the totals are larger by 4.2%. In the
Kansas City Reserve District there is a falling off of 14.4%,
in the Dallas Reserve District 9.9%, and in the San Francisco Reserve District 6.4%.
In the foLlowing we furnish a summary of Federal Reserve
districts:
SUMMARY OF BANK CLEARINGS.
1931.
1930,
Ise.or
Dec.
1929.
1928.
Federal Reserve Diets.
let Boston..- A2 eitiee
2n6 New York_12 "
aril Phlladel la_10 "
lth C1eveland__ 8 "
lith Richmond 6 "
$88 Atlanta____11 "
7th Chicago ___20 "
MD 81. Louts___ 8 "
tth Minneapolis 7 "
1018 KatentaCity 11 "
Ilth Dallas
5 "
1218 Elan Fran--16 "
$
418184,925
5,985,329,534
472,390,755
342,699,299
143,013,395
152510,878
661,615,556
148,467,671
104,932,847
153,235,212
58.120,951
293,767,029
$
437,482,746
5,645,253,815
531.706,572
342,862.511
149003,7E3
151,453,466
790,779,136
190,294,899
100,741,249
178,922,638
64,535,752
310,547,517
%
-4.4
+6.0
-11.2
-0.1
-4.0
+0.7
-16.3
-22.0
+4.2
-14.4
-9.9
-6.4
ll
466,629,733
2.206,517.556
566,901,350
396,478,785
148,536,501
167,710.611
991,195,586
205.455,462
109,012,532
184,713,190
76,669,871
344,134,626
$
5427,912,309
5.887,906,383
474,424,845
349,668,897
151,581,100
154,962,974
843,160,872
193,764,516
99,480,073
176,172696
66,364,812
344,201,357
Total
126 cities
Outside N. Y. City
5,931,268,053
3,081,914,779
8,896,584,053 +0.4 11,363,956,793
3,356,648,020 -9.0 3,800,055,235
9,166,600,818
3,411.716,577
Canada
32 cities
318.058.933
379.065.608 -16.1
431,591,339
410,415.360
We now add our detailed statement showing last week's
figures for each city separately, for the four years:
Week Ended Feb. 21.
Clearings of1931.
1930.
InC.Or
Dec.
8
$
First Federal Reserve Dist riet-Boston -%
&Line-Bangor521,943
455,421 +14.6
Portland
2,58E911
2,959.601 -12.8
14ass.-Boston
376,833,969 394,593,590 --4.5
Fall River_ _
1,128,043
1,075.654 +4.9
Lowell
460.024
790,633 -41.8
New Bedford
851,161
1,108,594 -23.2
Springfield_ __.
4,282,495
4,142,051
+3.4
Worcester
2,524,391
2,880,071 -12.4
:Ion n.-Ilartford
10,898,222
12,199,670 -18.9
New Haven_ _ _
6,803,550
6,639,325 +2.5
6.E-Providence
10.746,800
10,110,500 +6.2
4.H.-Manches'r
552,416
+6.0
527,636
Total(12 cities)
418,184,925
437,482,746
Second Feder al Reserve D istrict-New
4. Y.-Albany
6,228,583
5,360,309
Binghamton.._
1,123.376
931,594
Buffalo
41.650,434
43,028,950
Elmira
941,972
719.273
Jamestown_ _
1,180.912
1,056,099
New York
5.849,353,274 5,509,936,033
Rochester
9,087,475
9,713,393
Syracuse
4,547,298
4,332,965
loon -Stamford
3,066,696
3,966.818
sl. J.-Montclair
745,340
685,107
Newark
30,437.303
27,789,750
Northern N. J.
36,966,871
40,743,524
Total(12 cities) 5,985,329,534 5,648,263,815
Third Federal Reserve Dist rict-Philad
7a.-Altoona.....
1,318,548
1,228,299
Bethlehem_ _
4,632,712
3.680,352
Chester
562,419
832,485
Lancaster
1,826,743
1,891,192
Philadelphh.__ 448,000,000 506,000,000
Reading
2,440.782
2,792,974
Scranton
4,460,515
4,017,568
Wilkes-Barre_
3,544,244
3,201,722
York
2,020,792
1,643,980
4.J.-Trenton.
3,584,000
6,358,000
Total(10 cities)
472,390,755
-4.4
1929.
$
1928.
$
482,434
3,110,281
418,000,000
1,075,415
1,196,611
942,376
4,282,417
3,042,126
13,281,764
7,015,086
13,671,300
529,923
418,854
2,514,256
383.000,000
1,629,097
896,845
918,196
4,238,584
2,611,070
12,322,679
6,963,929
11,912.100
486,693
466,629.733
427,912,303
York
+16.2
4,993,090
4,660,232
1,050,453
+20.6
896.534
54,058,722
42,712,694
-3.2
+31.0
825,437
746,599
+11.7
1,078,798
984.864
+6.2 7,563,900,864 5,754,884,241
10,060,532
-6.4
11,563,160
5,170,542
4,790,988
+5.0
-22.7
4,180,647
2,724,210
626,423
595,566
+8.8
26.373,670
29.843,564
+0.5
-9.3
36.876,397
35,006,359
+6.07,700.517,5508.887,906,383
elphia+8.1
1,411,920
+25.9
4,419,462
-32.4
989,635
-3.4
1,861,224
-11.5 540,000,000
-12.6
3.013.424
+11.0
5.611,818
+8.7
3,589,493
+22.9
1,812,486
-43.6
4,191,868
531,706,572 -11.2
Fourth Feder al Reserve D istrict-Clev eland
Dhlo-Akron
2,944,000
3,720,000 -20.9
Canton_ _
3,352,176
3,268.277 +2.6
Cincinnati_ _ _. 62,248,210
58,058,909 +7.2
Cleveland
109,831,337 112,419,697 -2.4
Columbus
13,353,100
12,774,000 +4.5
Mansfield
1,717.627
2,182,078 -21.3
Youngstown
3,707,066
4,158,425 -11.9
pa.-Pittsburgh. 145,545,783 146,281,125 -0.4
566,901,350
1,313,306
4,191,484
904,586
2,135,973
409,000,000
3,005,031
4,890,850
3,195,014
1,513,006
4,275,595
1931.
6,047,000
3,419,478
63,616,454
106,054,173
13,917,100
1,407,323
3,107,214
152,100,155
-0.1
396,478,785
349,668,897
Fifth Federal Reserve Dist riet-Richm ondBr.Va.-Ilunrien
022,242
1,027,801 -48.5
Va.-Norfolk_._
3,053,745
3,388,936 -9.9
Richmond
__
35,347,144
36,925.000 -4.3
_1,623,000
1,706,000 -4.9
3.C.-Charleston
Md.-13altimore.
76,590.064
85,260,278 -7.8
D.C.-Washing'n
23.777.200
20,695,748 +14.9
947.017
3,521,608
36,614,000
2,000,000
81,660,06'
23,793,811
911.149
4,292,504
36,059,000
2,200,000
87,011,550
21,106,897
-1.0
148,536,501
151.581,100
Sixth Federal Reserve Dist rict-Atlant a•1,500,000
2,300,000 -34.8
Tenn.-Knoxville
15,449,674
Nashville
20,124,194 -23.4
39,052.293
Ca.-Atlanta_ _ __
41,856,103 -6.7
1,42E336
1.437,520 -1.1
Augusta
857,118
Macon
1.089,442 -21.3
14,952,373
Fla.-JacksonVille
15,310.015 -2.4
13,454.397
Ala.-Birm'gham
19,098.447 -29."
1,306,385
Mobile
1,555,794 -26.0
2,038,000
Miss.-Jackson_
3,320.000 -38.6
162,409
Vicksburg
192,551 -15.6
62,316,893
La.-New Orleans
45.169,390 +28.0
2,602,517
20,206,759
50.982,416
1,821,911
1,261,652
15.796,407
21,787,246
1,472,854
2,541,000
358,711
48,879,138
2,750.000
10,908,452
45,568,484
1,437,451
1,698,738
17,438.747
20.204.192
1,250.929
2,025,954
285.094
51.394,933
167,710,611
154,962,974
Total(8 cities).
Total(6 cities).
Total(11 cities)
342,699,299
143,013,395
152,510,878
342,862,511
149,003,763
151.453,456
+0.7
Inc. or
Dec.
1930.
1929.
1928.
Seventh Feder al Reserve D istriet-Chi cagoMich.-Adrian -169,898
195,687 --13.2
222,433
214,823
Ann Arbor___ 859,818
591,501 4-45.4
854,547
601,423
Detroit
140,186.257 158,371.014 --11.5 219,176,823 146,719,304
Grand Rapids4,968,553
4.419,294 +12.6
6,873,566
6.684,225
Lansing
2,848,627
2,647,500 4-7.6
2,676,476
3,302.942
Ind.-Ft. Wayne
2,889,842 --14.6
2,468,655
3,031,059
2,553,133
Indianapolis_
21,804,000
17,150,000 4-27.1
20,637,000
19,759,000
South Bend_ _ _
1,968,683
2,020,875 --2.6
3,127,7U
2,428,692
Terre Haute__ _
4,439,484
5,409,983 --17.9
6,163,294
4,762.732
Wis.-Milwaukee
21.013,920
24,150,392 --13.0
28,797,203
34,278,438
1owa-Ced, Rap.
2,418,946
2,473,736
2,429,581
2,428,206
Des Moines _ 8,028.615 --19.0
6,506,717
8,198,331
8,076,159
Sioux City_....
3,828,075
5,574,446
5,664,118
5,922,452
Waterloo
1,544,951 ---48.1
801,766
1,209,456
1,145,174
111.-Bloomingt'n
1,456,490
1,311,556 +11.2
1,637,108
1,438,041
Chicago
437,313,589 543,849,871 --19.6 668,478,874 592,268,113
Decatur
1.056,295 --19.7
848.658
1,159,115
984,100
Peoria
3,334,888
4,170,591
5,334,992
4,625,767
Rockford
2,379,448
2,823,620 ---15.7
3,170,838
2,818.810
Springfield..
1,999,084
2,099,366
2,353,034
2,149,338
661,615,556
790,779,135 -16.3
991,195,586
843,160,872
ula---9.8
--13.8
--39.6
--32.5
--26.0
--40.9
--36.1
--49.6
5,311,810
128,200,000
37,114,947
455,216
19,804,273
13,082,281
259,306
1,227,619
4,123,891
121,100,000
32,983,801
363,989
18,578,348
12,116,380
285.501
1,212,606
190,294,899 -22.0
205.455.452
190,764.516
Ninth Federal Reserve Die trice- Minn eapolis
klinn.-Duluth....
5,750,315 -23.2
4,417,799
Minneapolis
68,624,573 +4.3
71,594,147
St. Paul
22,979,674
21,156,290 +8.6
N. D.-Fargo
1,633.568 +10.3
1,801.099
S. D.-Aberdeen
806,818 +8.5
875,224
Mont.-Billings _
492,562
445,685 +10.7
Helena
2,772,342
2,324,000 +19.3
6,009,598
70,592,813
26,757,001
1,531,215
829,240
500,665
2,792,000
5,395,627
63,212,509
25,808,591
1.593,062
947,913
521.562
2,000,809
+4.2
109,012,532
99.480,073
Tenth Federal Reserve Die triet Kane as City
Neb.-Fremont
249,725
316,325 -21.1
Hastings
413.886 -8.2
380,080
Lincoln
+1.2
2,961,036
2,797,876
Omaha
39,081,612
40,339,966 -3.1
Kan.-Topeka
3,398,955 --23.0
3,372,954
Wichita
6,442,163 --20.4
5,128,235
Mo.-Ran. City..
95,478.776 116,750,175 --17.9
St. Joseph_ _
6,631,147 --31.3
4,556,273
Col.-Col. Spgs.
921.283
927,415 --0.7
Denver
a
a
a
Pueblo
1,341,570 --5.4
1,268,598
290,160
443,468
3,320,710
41,932,892
2,589,244
6.623,870
119,695,961
7,330,538
1,087,361
a
1,398,986
323.826
450.635
4,147,742
39,593,161
2,813,862
7,420,752
112.922,514
6,247.012
1,102,544
a
1,144,038
178,922,638 -14.4
184,713,190
176,172,686
D
Elaelvins
enth Fede ral Reserve District-Da ilasTexas-Austin
+6.7
1,528,508
1,648,200
40,624,343 +0.4
40,808,429
o
Fort
14,042,188 -32.8
,420,328
Galveston
2,913,000
3,995.000 -27.1
9
La.
-Shreveport_
4,345,713 -21.0
3,332,995
1,616.819
51,463,509
13,736,222
4,700,000
5,153,321
1,249,195
45,622,572
10,659,473
4,109,009
4,724,572
76,889,871
68,384.812
Eighth Federa I Reserve Dis trict-St.1.o
Ind.-Evansville,
3,734,969
3.369,055
Mo.-St. Louis_ _
98,400.000 114,100,000
Ky.-LouLsville39.053,967
23,597,937
Owensboro _ _
356,681
528,072
Tenn.-Memphis
14,581,646
19,693,892
Ark.-LittleRock
7,401,979
11,735,349
111.-Jacksonville
218,831
138,595
Quincy
1,231,819
621,778
Total(8 cities) _
Total(7 cities) _
Total(11 cities)
Total(5 cities).
148,467.671
104,932,847
153,235,212
58,120,952
100,741,249
64,535,752
Twelfth Feder al Reserve D Istrict-San Fratid sco-Wash.-Seattle
34,262,786 -1.5
33,760,929
43,160,467
38,000.000
Spokane
9,575,000 +0.1
9,587,000
11,085,000
11,283,000
Yakima
1,341,431 -43.0
764,951
1,055,047
1,133,756
Ore.
-Portland
28,765,301 --1.3
28,400,510
32,472,503
29.698,209
Utah-S. L. City
14,843,577
15,295,258
-1- 3.0
16,634,265
14,990,059
Calif,-L.Beach_
6,082,052 -0.3
6,064,768
8,458,890
7,642,062
Los Angeles_ _ _ No longer w 01 report; Clea ringsOakland
13,491,223 -1.5
17,310.744
13,296,279
16,194,700
Pasadena
5,076.445 +9.8
5,565,169
6,528,681
6,579.969
Sacramento6,327,713
8,278,891 -23.6
6,6.53,494
5,804.765
San Diego_ _
4,874,453 -13.1
4,236,057
5,508,467
4,516,405
San Francisco_ 159,779,54
174,906,948 --8.7 187,046,148 200,159,000
San Jose
2,338,224
2,802,186 -16.6
2,471,601
2,668.582
Santa Barbara..
1,849,969 +3.8
1,916,40
1,595,992
1,380,723
Santa Monica_
1,647,455 +0.8
1,660,92
1,849,227
1,914,727
Stockton
1,773,300
2,750,000 -35.5
2,324,100
2,235,400
Total (16 cities) 290,767,029 310,547,517 -6.4 344,134,626
344,201,357
Grand total 126
cities)
8,931,268,053 8,896.584,053 +0.4 11363955.793 9,166.600,818
Outside New York 3.081,914,779 3.386.648,020 -9.0 3.800,055,229 3,411,716,577
Week Ended February 19.
Clearings al-
474,424,845
7,064,000
3,607,048
74,430,399
127,079,221
14,078,800
2,426,972
5,281.348
162,510,997
Week Ended Feb. 21.
Clearings at
Total(20 cities)
Week End. Feb. 21 1931.
1561
1931.
1930.
Inc. or
Dec.
CanadaMontreal
Toronto
Winnipeg
Vancouver
Ottawa
Quebec__
Halifax
Hamilton__ Calgary
St. John
Victoria
London
Edmonton
Regit
Brandon
Lethbridge
Saskatoon
Moose Jaw
Brantford
Fort William
New Westminster
Medicine Hat
Peterborough__ _
Sherbrooke
Kitchener
Windsor
Prince Albert_ _ -Moncton
Kingston
Chatham
Satins
Sudbury
112,044,625
102,089,157
30,133.071
17,617,055
6,638,123
4,697,949
2,792,877
4,676,560
7,291,780
3,803.399
1,873,554
2,657.797
4,439,046
2,718.840
415,657
396,959
1,525.250
715,392
870.511
596.704
578,685
211.939
834,020
662,034
1,018.836
3,219,329
321,641
660.125
566,688
666,687
527,757
768,89
$
126,291,198
113,374,051
50,682,308
21,459,465
7,286,082
5,624.479
2.555,144
5.787.167
9,030,021
2,059,072
2,133,475
3,067.443
5,711,458
4,325,370
515.796
534,725
2,029.837
1,055,402
1,045.692
830,439
724.315
344.677
832,228
915,453
1,252,881
4,756,560
446,528
801.456
578,600
628.595
728.532
1,057,159
Total(32 cities)
318,058,923
379,065,608 -16.1
-11.3
-10.0
-40.6
-17.9
--16.5
+9.2
--19.2
--24.3
--15.3
--I2.2
--13.4
--22.3
--37.1
--19.4
--25.8
--24.9
--32.2
--I6.9
--28.1
--20.1
--38.5
+0.2
--27.7
--16.5
--32.3
--17.6
--27.6
--27.2
a No longer reports weekly clearings. * Estimated
1929.
1928.
137,363,368
151,811,041
43,075,844
23,007.157
9,724,431
7,442,814
3,308,714
7,299,280
9,713,904
2,471.713
2,613,009
3,160,419
5,797,323
4,376,236
504,113
542.498
2,160,128
1,211,247
1.527,391
883.426
721.528
434,078
899.806
1,100,665
1,192,828
5,583.076
452,972
953,931
790,067
757.241
730,595
136,557,603
141,015,216
44,399,146
21,539.832
6,552,673
4,393,881
3,049.803
5,408,980
12,325,676
2,614.276
1,885,749
2,846,414
5,301,205
4,342,077
309.026
608.125
1,862,962
1,112,827
1,410.158
833,987
672,883
432,041
837,521
786,422
1,288,863
4,938,778
370,033
799,440
702.993
688,664
550,106
431,591,339
410,415,360
For.. 132.
FINANCIAL CHRONICLE
1562
PRICES ON BERLIN STOCK EXCHANGE.
THE CURB EXCHANGE.
quotations of representative stocks on the Berlin
Closing
the
of
opening
the
at
market
After an active and buoyant
as received by cable each day of the past
Exchange
Stock
week, profit-taking on Wednesday,caused a loss of practicweek have been as follows:
Feb. Feb. Feb. Feb. Feb. Feb.
ally all the gains recorded the previous day. Subsequently
27.
26.
25.
24.
23.
21.
Per Cent of Par
the market turned irregular though throughout the utility
96
96
96
96
96
Ails. Deutsche Credit(Adea)(8)
124
123
123
123
122
list good recoveries were recorded. Electric Bond & Share Berlin Hendels Gen.(12)
107
107
107
107
108
Bank (11)
com. improved from 5374 to 61, fell back to 5774 and closed Cemmers-und-Privat
135
135
134
134
134
Darmstadter u. Nationalbank (12)
106
108
106
106
106
to-day at 5774. Amer. & Foreign Power warrants advanced Deutsche Bank u. Disconto Gee.(10)
106
108
106
106
106
Dresdner Bank (10)
from 2374 to 3174, reacted to 273/ and closed to-day at •
157
155
157
159
154
Reichsbank (12)
70
67
68
69
steadily
up
71
Unto,
(19)
moved
(Aku)
Algermeine Kunstsljde
this figure. Amer. Gas & Elec. corn.
104
102
101
101
102
Allg, Elektr. Gee.(A.E.G.)(9)
Amer.
to-day.
close
the
77
79
at
80
from 81 to 863
82
% and fell to 8374
82
Deutsche Ton- nod Steinzeugwerke (11)
186
185
185
1853.
185
Light & Trac. corn. gained four points to 5274. Common- Ford Motor Co.. Berlin (10)
76
76
76
76
76
Gelsenkirchen Bergwerk (8)
116
113
112
111
111
wealth Edison advanced from 2493 to 256% and reacted Geefuerel (10)
63
63
62
64 IIOLI- 63
Lines (Ela9a2)(7)
finally to 253. On few transactions Empire Power jumped Eiamburg-American
109
108__ _
DAY 107
107
Hamburg Electric Co.(10)
__
72
73
132
72
from
up
sold
Power
States
4. Northern
Harpener BergbaU (6)
from 35 to 527
47
47
48
48
46
Heyden Chemical (5)
rose
Power
&
Water
Pa.
137.
at
week
the
ends
and
98
98
to 138
100
99
99
Hotelbetrleb (10)
138
137
135
136
139
from 6274 to 70 and closed to-day at 6974. United Light I. G.Farben Indus.(Dye Trust)(14)
101
Chemle
61
4 reached 3474 with the close Hall
62
60
61
62
& Power corn. A from 293
Karstadt (12)
69
68
68
67
6S
Humble
Mannesmann
Tubes (7)
note.
of
changes
few
to-day at 3358. Oils show
64
65
64
66
66
North German Lloyd (8)
56
__
55
55
% and closed to-day at Phoeni: Bergbau (614)
56
Oil & Ref. dropped from 68 to 635
155
152
150
150
152
Polyphonwerke (20)
with
the
to
6874,
from
off
was
Pa.
of
Oil
7174
Gulf
133
131
133
131
6474.
128
Rhein-Westf. Elektr. (R.W.E.) (10)
82
80
80
80
79
final transaction to-day at 6974. Among industrials A. 0. Sachsenwerk Licht u. Kraft (714)
a172
181
178
181
180
Siemens & Haleke (14)
and
closed
1893
to
160
from
%
112
112
Smith Corp. corn. ran up
111
111
113
Leonhard Vets (10)
58
58
57
57
to-day at 18574. Aluminum Co.of Amer.corn., after an early ver. Stahlwerke(United Steel Works)(6) 59
Ex-rights(new Reichsbank and Gold-diskontbank shares). a Ex-dividend.
advance from 16374 to 178, reacted finally to 163. Deere
3 and at 4374 finally.
& Co. sold up from 36% to 44%
ENGLISH FINANCIAL MARKET-PER CABLE.
A complete record of Curb Exchange transactions for the
The daily closing quotations for securities, &c., at London,
week will be found on page 1592.
as reported by cable, have been as follows the past week:
4
DAILY TRANSACTIONS AT THE NEW YORK CURB EXCHANGE.
Bonds (Par Value).
Week Ended
Feb. 27.
Stocks
(Number of
Shares).
Saturday
Monday_
Tuesday
Wednesday
Thursday
Friday
Total
ROMs.
Foreign
Domestic. Government.
924,400
781.700
1,095,800
848,400
4,700 $1,842,000
HOU DAY
10,500 2,908,000
11.000 2.699,000
11,100 2.422,000
9,700 2,475,000
4,178,900
47,000 812,346,000
528,600
Total.
390,000 $1,932,000
107,000
117,000
158,000
207,000
3,015,000
2.816,000
2,580,000
2,682,000
$679,000 $13,025,000
Fri..
Wed.,
Thurs.,
Tues.,
Mon.,
Sat.,
Feb. 27.
Feb. 25.
PcI. 28.
Feb. 21. Feb. 23. Feb. 24.
12 7-16d. 1234d.
12 11-16d. 12%cl.
123(d.
Silver, per oz__ 12%d.
84s.11 3.4d.
Gold, p.fine on. 84s.113.4d. 84s.11d. 845.113.4d. 84s.114d. 84s.1134d.
563.4
5634
5634
554
55
Consols,2%%_ 553.4
103
10334
1033.4
10234
102%
British, 5%__. ____
100
10034
100
9934
9934
British 4%%
French Rentes
88.40
88.20
88.50
88.30
88.10
(in Paris).fr- ---French War L'n
101.60
101.80
101.60
101.60
101.60
(in Paris)_fr. ____
The price of silver in New York on the same days has been:
Silver in N. Y., per oz. (eta.):
273.4
Foreign
----
2734
263.4
2874
27
Trananercialand RatsceliatteonsBolls
PRICES ON PARIS BOURSE.
Breadstuffs figures brought from page 1659.-All
Quotations of representative stocks on the Paris Bourse the statements below regarding the movement of grainas received by cable each day of the past week have been receipts, exports, visible supply, &c., are prepared by us
from figures collected by the New York Produce Exchange.
as follows:
ports
Feb.21. Feb.23. Feb.24. Feb.25. Feb. 26. Feb.27. First we give the receipts at Western lake and river
1931.
1931.
1931.
1931.
1931.
1931.
week ending last Saturday and since Aug. 1 for
the
for
Francs. Francs. Francs. Francs. Francs. Francs. each of the last three years:
19,000 18,825 19,100 19,100 19,200 19,200
Bank of France
1.295
1,299
1,300
Banque Nationale de Credit
2,460
2.430
Banque de Paris et Pays Bas___ 2,440
1,440
1,425
Banque de Union Parielenne___ 1,425
1.160
1,160
Canadian Paelfle
16,900 16,830 16.900
Canal de Sues
2.370
2.360
2.380
Cle Distr. d'Electriettie
2,800
2.765
2,770
CM Generale d'Eleetricitle
521
521
535
Cie Ole Trane-Atlantique
580
672
574
Citroen B
1,720
1,725
Compton' Nationale d'Efloompte 1,720
720
700
00ty. Inc
1.126
1,111
1,112
Ciourrieres
1,245
1,245
Credit Commerciale de France- 1,250
2.680
2,680
2,680
Credit Lyonnais
2,680
2.660
Eau: Lyonnais
980
980
985
Einsegle Electrique du Nord-1,316
1,315
Entergie Electrique du Littoral- 1,310
245
239
Ford of Franco
528
540
French Line
143
145
Gales Lafayette
664
659
660
Kuhlmann
1,170
1.160
1,170
L'Air Liquids
1,560
1,562
1.569
Lyon (P. L. M.)
2,170
2,170
2,160
Nord Ry
1.422
1.435
1,420
Orleans Ry
151
144
150
Pathe Capital
2.240
2.215
2,220
Pechtney
88.30
88.10
88.10
Rentes 3%
137.20 136.75 137.10
RAeltes 5% 1920
104.50
104.50
Bente, 4% 1917
101.60
101.70
Bantam 6% 1916
103.60
103.40
1920
Rentee 6%
3.180
3,200
Royal Dutch
3,545
3.455
3.475
Saint Cobin, C.&0
1.80)
1,795
1,780
Schneider & Cie
2.695
2.660
2.660
Societe Lyonnais
900
Societe Marseillalas
331
316
330
Tublze Artificial Silk, prof
1,100
1,085
1,100
Union d'Electrteltie
510
540
Union ties Mines
355
337
335
Wagons-Lite
1,300
1,328
2,430
2,450
1.426
1.428
1.160
1.150
16,800 16,800
2.400
2,380
2,770
2,770
510
500
682
709
1,710
1.700
700
700
1,130
1.128
1,250
1,248
2,660
2,660
2,670
2.660
075
988
1,312
1,305
247
28
506
508
142
141
632
630
1,160
1,170
1.555
1.560
2,180
2,190
1.422
1.420
152
149
2,210
2,190
88.20
88.50
137.20 137.10
104.50 104.30
101.80 101.60
103.20 103.10
3.120
3,090
3.500
3,500
1.800
1, 00
2.670
2,665
930
903
300
315
1,0 0
1,080
625
342
342
Receipts at2,460
1.150
17.000
2,830
740
1,690
700
2,680
2,680
246
510
142
631
1,170
2.200
Flour.
Corn.
Wheat.
Octts.
Barley.
Rye.
,,1.1.1961bs.bush.60 lbs.bush.56 lbs.bush. 32 lbs. bush.481bs.bush.5431bs.
5,000
35,000
270,000
867,00' 2,022,000
197.000
Chicago
24,000
176,000
240.000
289,000
1,847.011
Minneapolis
28.000
50,000
42,000
1,400,111
3.000
Duluth
1,000
186,000
28,001
319,061
69.000
12,000
Milwaukee_
38.000
28,000
37,111
Toledo
2,000
4,000
40,00'
24,000
Detroit
156,000
628.001
20,000
Indianapolis_
65,000
353.000
569.000
585,000
130,001
St. Louis_ _ _ _
85,000
64,000
100.000
365,000
115,000
79,000
Peoria
114,001
1,497.111 1,078,000
Kansas City_
186,001
782,000
674,001
Omaha
86.001
474,000
169,000
St. Joseph_
4,000
10.000
73,000
402.000
Wichita
64,000
50,000
9,001
Sioux City_ _
145,000
584,000
418,000 7,715,000 6,680,000 1,727.001
Total wk. '31
97.000
671,000
332,000 4,190,011 7,748,000 1,887.001
Same wk. '30
210,000
420,000 6,277,0 o I 6,376,001 2.670,000 1.286,000
Same wk. '29
Since Aug.116,326,000
12,723.000 297,159,000125,984,000 77,168.00037.298,000 20,294,000
1930
12.926,000 279,160.000162.995,000 92.901,000 52.154,000
1929
.A ate0., MA q,111 Al, Ann191 271 000 97 782.00077.589.00021.065.000
on..
Total receipts of flour and grain at the seaboard ports for
Saturday, Feb. 21 1931, follow:
Receipts at-
Flour.
Wheat.
I
Corn.
Oats.
Barley.
Rye.
32 lbs. bush.481b5. bush.561b,.
bbls.1961b5. bush.60 lbs. bush.56 lbs. bush.29,001
2,000
2,00
18,000
932,000
215,000
New York_ __
15.000
179,000
Portland, Me_
123.000
40,000
Philadelphia
1.000
11,000
18,000
107.000
16,000
Baltimore____
4,00
64.00
1,011
Norfolk
33,000
30.000
3,0031
66,000
New Orleans•
32,000
Galveston_ __ _
16,000
26,00
644,000
27,000
St. John, N.B
2,000
32,000
Boston
43,0
19.000
75.00
70.000
397.000 2,084,000
Total wk. '31
260.0
66,000
662,000
552.000
Since Jan.1'31 3,034,000 12,229,000
155,001
90,00
732.000
000
04,0
469
_,_1 3 3
1,3
30_
Week
l•9,
, i.
,n,r.
.
106.000
39,000
645,000
704.000
8,565.000
1,110
passing through New Orleans for foreign ports
630
• Receipts do not include grain
on through bills of lading.
2,220
88.40
137.10
104.10
101.60
102.90
3.110
Pittsburgh Stock Exchange.-Record of transactions at
Pittsburgh Stock Exchange, Feb. 21 to Feb. 27, both inclusive, compiled from official sales lists:
Stocks--
Sales
Friday
Last Week's Range for
Week.
of Prices.
Sale
Par. Price. Low. High. Shares.
Allegheny Steel
•
Aluminum Goods Mfg_._•
American Austin Car_ _•
Arkansas Nat. Gas Corp
- _•
Preferred
10
Armstrong Cork Co
_•
Blaw-Knox Co_
•
Carnegie Metals
Clark(D L)Candy
Consolidated Ice. pref
46
16
1
634
7
24
28
134
10
•
50
Devonian 011
10
Follansbee Bros., pref. _100
Hachmeister Lind Corp- _•
Harbison Walker Ref_ _ _ _•
Independent Brewing_ __50
Jones& Lau'gnSteeLpf 100
63.5
14
42
4634
46
1434 16
6
631
7
7
25
24
2734 2934
134 2
1234 13
2434 25
5
75
14
4234
2
12134
634
75
1434
42
2
12134
220
240
2,150
185
475
275
1,016
750
100
35
10,722
29
1,050
32
360
25
700
3134
110
5
1134 3,313
100
134
140
4234
1534 1,386
910
1934
Reymers Brothers
•
San Toy Mining
1
Shamrock Oil& Gas
•
Standard Steel Spring_ _ •
'United Engine & Fdy_
*
1634
la
1234
2534
38
12
25
1634
10
9
2434
3634
Range Since Jan. 1.
Low.
3934
14
1
534
634
2034
24
Feb
Jan
Jan
Jan
Jan
Jan
Jan
134 Jan
Jan
10
2434 Feb
5
2,270
10 74
825 10
110 39
2
50
190 120
Lone Star Gas
z25
• z25
Mesta Machine
31
5 32
Nat.Fireproofing
25
• 25
Preferred
31
50 31
Pittsburgh Brewing corn 50
5
Pittsburgh Forging
10
• 11
Pittsburgh Oil& Gas
5
134
Pittsburgh Plate Glass_ _25 4234 41
Pittsburgh Se & Bolt Corp* 1534 1434
Plymouth Oil Co
s 1734 1734
24
2534
25
31
5
834
134
3435
14
1631
High.
4634
16
134
63(
7
30
2934
Feb
Feb
Jan
Jan
Jan
Jan
Feb
334 Jan
1334 Feb
25
Feb
Jan
634 Feb
Feb 75
Feb
Jan 15
Feb
Jan 44
Feb
Jan
3
Jan
Jan 12134 Feb
Jan
Jan
Jan
Jan
Jan
Jan
Feb
Jan
Jan
Feb
29
32
27
33
6
1134
134
4234
1534
1934
Feb
Feb
Jan
Jan
Jan
Jan
Feb
Feb
Feb
Feb
1634 Feb
lc Feb
734 Jan
23
Jan
34
Jan
1734
2c
1234
2534
38
Jan
Feb
Feb
Feb
Feb
Feb 40
110 35
70 10334 Jan 105
Jan
1
134
100
4,785 1034 Jan 1434
Feb
Jan
Jan
Feb
175
5,100
7,250
634
405
UnlistedCopperweld Steel
*
Lone Star Gas pref._ _100
Mayflower Drug stores •
West Pub Fiery v t c
•
•No par value.
1563
FINANCIAL CHRONICLE
Fn.28 19311
14
3634 3334
105 105
134 134
1334 1434
z Ex-dividend.
National Banks.-The following information regarding
National banks is from the office of the Comptroller of the
Currency, Treasury Department:
APPLICATIONS TO ORGANIZE RECEIVED, WITH TITLES
REQUESTED.
Capital.
Feb. 17-The Security National Bank of Paducah, Ky
$100,000
Correspondent, Messrs. Reeves & Russell, 117 Guthrie
Bldg., Paducah, Ky.
Feb. 20-The American National Bank of Bentonville, Ark
25,000
Correspondent, Walter Heaton, Bentonville, Ark.
CHARTER ISSUED.
Feb. 18-The First Merchants National Bank & Trust Co. of
Middletown, N. Y. President, F. W. Murray Jr.;
Cashier, Clifford A. Owen
250,000
VOLUNTARY LIQUIDATIONS.
Feb. 16-The First National Bank of Manchester, N.11
$150,000
Effective Feb. 141931. Liq. Committee,E.B. Stearns,
H. L. Additon and H. E. Straw, all of Manchester,
N. H. Liquidating bank has no successor.
Feb. 16-The First National Bank of Petersburg, N.D.
25.000
Effective Dec. 20 1930. Liq. Agent: P. E. Johnson,
Petersburg, N. Dak. Absorbed by Farmers State
Bank, Petersburg, N. Dak.
Feb. 16-The Prairie Depot Nat. Bk.of Freeport, P.O. Wayne,O. 25,000
Effective Jan. 29 1931. Liq. Agents: The Union Natl.
Bank of Fostoria, 0., and D. C. Knisel and J. L. Newson, trustees, care of the liquidating bank. Absorbed
by The Union National Bank of Fostoria, 0., No. 9192.
Feb. 17-The First National Bank of Waterloo, Iowa
200,000
Effective Jan. 131931. Liq. Committee: A. M.Place,
H. A. Maine and W. A. Lane, all of Waterloo, Ia.
Absorbed by The Commercial Natl. Bank of Waterloo,
Iowa, No. 2910.
Feb. I7-The First National Bank of Peabody, Kans
50,000
Effective Feb. 16 1931. Liq. Agents: Willis Westbrook and L. J. Whittecar, Peabody, Kans. Absorbed
by the Peabody State Bank, Peabody, Kans.
Feb. 19-The First National Bank of Fort Dodge, Iowa
300,000
Effective Feb. 10 1931. Liq. Agent: J. Floyd Rich,
Fort Dodge, Ia. Succeeded by First State Bank &
Trust Co., Fort Dodge, Ia.
Feb. 19-The Citizens National Bank of Monessen,Pa
100,000
Effective Jan. 2 1931. Liq. Committee: C. S. Duvall,
G. F. Wright and Jay S. Garman, care of the liquidating bank. Absorbed by First National Bank & Trust
Co. of Monessen, No. 5253.
Feb. 20-The First National Bank of Garrison, N. Dak
25,000
Effective Nov. 15 1930. Liq. Agent: C. J. Ehlers,
Garrison, N. Dak. Succeeded by First National Bank
in Garrison, No. 13501.
Feb. 20-The Commercial National Bank in Jefferson, Texas__ _
25,000
Effective Feb. 10 1931. Liq. Agent: T.0. Schellinger,
Jefferson, Tex. Absorbed by Jefferson State Bank,
Jefferson, Texas.
Feb. 21-The First National Bank of Haxtun, Colo
50,000
Effective Feb.20 1931. Liq. Committee: If. G.Eaton,
H. R. Olson, J. L. Chaney John T. Anderson, Harry
W. Hartman, Paul Holmquist and C. C. McCune, care
of the liquidating bank. Absorbed by the Farmers
State Bank, Haxtun, Colo.
Feb. 21-First National Bank in Hutto, Texas
25,000
Effective Feb. 11 1931. Liq. Agent: T. N. Mauritz,
Ganado, Tex. Absorbed by City National Bank of
Georgetown, Tex., No. 12680.
CONSOLIDATIONS.
Feb. 9-The Marlin National Bank, Marlin, Texas
100,000
Citizens
The
National Bank of Marlin Texas
100,000
Consolidated today under Act of Nov.'
71918,as amended
Feb. 25 1927, under charter of The Marlin National
Bank, No.5606,and under the corporate title of"Marlin-Citizens Nat'l Bank," with capital stock of$200.000.
Feb. 14-The Irving Park National Bank, Chicago, Ill
300,000
The Portage Park National Bank of Chicago, Ill
300,000
Inland Trust & Savings Bank, Chicago, Ill
300,000
Consolidated today under Act of Nov.7 1918, as amended
Feb. 25 1927, under the charter of The Irving Park
National Bank, No. 10179, and under the corporate
title of "Inland-Irving National Bank of Chicago,'
with capital stock of U25,000.
75,000
Feb. 16-The First National Bank of Nesquehoning, Pa
50,000
Miners Bank of Nesquehoning, Pa
Consolidated to-day under .Act of Nov. 7 1918, as
amended Feb. 25 1927, under the charter and corporate
title of "The First National Bank of Nesquehoning,"
No. 10251, with capital stock of $100.000.
BRANCH AUTHORIZED UNDER ACT OF FEB. 25 1927
Feb. 11-The Second National Bank of Paterson, N. J.
Location of Branch: S. E. Cor.Park Ave.& Straight St.,
Paterson, N. J.
Feb. 16-The Bank of America National Association, N. Y. City.
Location of Branch-Bay 20th St. & 86th St., Borough
of Brooklyn, N.Y. City.
Auction Sales.-Among other securities, the following
not actually dealt in at the Stock Exchange were sold at auction
in New York, Boston, Philadelphia and Buffalo on Wednesday of this week:
By Adrian H. Muller & Son, New York:
Shares. Stocks.
$ per Sh.
$10.000 Kentucky Block Cannel
Coal Co.20-yr. 5s Aug. 1 1923_8375 lot
86,000 Ohio & Kentucky Ky. CO.
5% inc. ctf. ser. B, due July 1
5135 lot
1936
All right, title and interest of
Globe Bank & Trust Co. In and
to the following: 100 Jacnet
Realty Corp.: 218 Eagle Funding
Corp. cl. A. Bond made by
Lefferts Bldg. Corp. to Jacnet
Realty Corp., dated Sept.6 1928
for $44.000, amd mtge. given as
collateral security for the payment thereof made by Lefferts
Bldg. Corp. to Jacnet Realty
Corp., bearing even date, and
assigned to Globe Bank & Trust
Co. and Rugby Natl. Bank, as
collateral security. Bond of
Fumar Constr. Corp. to David
Weiss, dated May 6 1926 for
510,000 and mtge. given as collateral security for the payment
thereof dated Sept. 21 1926 assigned to Globe Bk. & Tr. Co.
and Rugby Natl. Bank. Bond
of Fumar Constr. Corp. to David
Weiss, dated on or about Apr. 30
1926 for $15.000 and mtge. given
as collateral security for the payment thereof bearing date Apr.
BondsPer Cent. 30 1926 and assigned to Globe
$708.33 Kentucky Block Cannel
Bk. & Tr. Co. and Rugby Natl.
Coal Co.5% gold note
Bk
$16 lot
$1000 lot
Shares. Stocks.
$ per Sh.
36 Morena, Inc., let pref. (now
Van Ameringen Haebler, Inc.)._ 16
689 Glen Rock Park, Inc., cornMOrt
$11,784.95 lot
200 (The) Mirror, 7% cum. pref._ 750.
50,000 Katherine Gold Mining Co.
of Delaware, par $1
$130101
15 Towne Securities Corp., pref.;
30 Towne Securities Corp., corn..
no par
$27101
50 Danish American Corp.. 1st
pref.; 100 Danish Amer. Corp..
corn., v.t. c.
$69101
9,156 Western Costume Co., corn,
Par $10; 3.987 Western Costume
Co., pref., Dar 510: promissory
note. dated May 23 1927 for
515,185.05. made by Western
Costume Co., payable to L. L.
Burns, on which approximately
$1,000 has been paid, to be sold
without recourse
$50 lot
6236 152 West 25th Street Corp $25 lot
4 U.S. Testing Co., Inc., par 525.547 lot
50 Lucile Staff, Inc., pref
$25 lot
1234 Lucile Staff, Inc., corn, no
par
$2 lot
75 Kentucky Block Cannel Coal
Co
$25 lot
40 Ohio & Kentucky Ry. Co., par
$25
$10 lot
By R. L. Day & Co., Boston:
Shares. Stocks.
$ per Sh.
22 Federal Nat. Bank, par $20____ 85
10 Exchange Trust Co
190%
9 U.S. Tru.st Co., par $25
8134
5 Exchange Trust Co
192
Associated Textile Cos.: 5 at 35;
5 at 35; 5 at 35; 5 at 35; 5 at 3634
12 Nashua Mfg. Co., pref
29%
13 Wllliam Whitman Co., met
5234
40 New Eng,Fire Ins. Co., par 810. 25
20 Mass. Bonding & Insurance
Co., par $25
8234
500 J. R. Whipple Corp.,com-.26c.-27c.
Shares. Stocks.
$ per Slit
16 Alliance Realty Co.,6% pref._ 88
48 Robert Gair Co., class A
6-34-634
100 Mass. Bonding & Insurance
Co., par 825
8154-82H
6 New Eng. Pub. Serv. 7% pref. 9234
Hampshire:
16 Public Service New'
6% preferred
99
10 Heywood
Co., corn.. 1634
10 Draper Corp
-Wakefield4831-50
Rights.
per
Lynn Gas & Elec. Co., V. t. 0-..Rig/S.37 73i
By Wise, Hobbs & Arnold, Boston:
Shares. Stocks.
'
$ per Sh.
22 2-20 Federal Nat. Bank, par $20 85
20 Nat. Shawmut Bank, par 525._ 6234
Associated Textile Cos.: 5 at 35:
Sat 35:11 at 35:5 at 3634•
4 units First Peoples Trust
20
50 Bangor Hydro-Electric Co.common, par $25
45%-45H
50 Western Mass, Cos
6234-6234
30 Joint Stock Securities Co. corn__
5
S special units First Peoples Trust-- 3
4 No.Bost, Ltg. Prop,corn. v.t.c__ 71%
2 State Theatre Co., prof
100
Shares. Stoats.
$ per MP
197 Quincy Mkt. Cold Storage &
12
Warehouse Co. common
72 No.Bost. Ltg. Prop.com. v.t.c. 72
10 New England Pow. Assn. corn.. 75
10 Western Mass. Cos
6234
12 Malden Electric Co., par $25 112
Rights$ per Right.
510 Lynn G. & El.
7-16-734
BondsPer Cent.
$10,000 United Merchants & Mfrs.
Inc.,6% notes, Dec. 15'31.9734k int.
By Barnes & Lofland, Philadelphia:
Shares. Stocks.
$ Per Sh.
10 Cemetery Memorial Co., par 550
50
55 Hillside Cemetery Co., par $25__ 20
20 Phila. Nat. Bank, par $20
120
125 Commercial Nat. Bank & Trust
Co., par $10
18
50 Adelphla Bk.& Tr.Co., par $10- 634
100 Central Tr.& Say. Co., par $10 14
50 Continental-Equitable Title &
Trust Co., par 35
25
8 Pa. Co. for Ins. on Lives, &c.,
par $10
8331
0 Llewellyn Laboratories, Inc.,
Pref.. par $50: 20 corn., no par_00 lot
Shares. Stocks.
$ per Mt
5 Integrity Trust Co.. par $10
90%
10 Pennsylvania Salt Mfg. Co
so
1 Minehill & Schuylkill Haven RR.
par 850
58
30 Little Schuylkill Nay. RR. &
Coal, par 550
4534
100 Nat. Dept. Stores, 2d pref.__ 41
24
100 Flre Assn. of Phila
21 Mitten M.& M.Bk.& Tr. Co 4834
Per Cent.
Bonds$5,000 North American Bldg. Corp.
2
6%,Dec.11930
By A. J. Wright & Co., Buffalo:
Shares. Stocks.
$ per Sh.IShares. Stocks.
500 Baldwin Gold Mines. par $1... 2c. 200 Assets Realization Co.
$ Per Sh.
$7.50 lot
DIVIDENDS.
Dividends are grouped in two separate tables. In the
first we bring together all the dividends announced the
current week. Then we follow with a second table, in
which we show the dividends previously announced, but
which have not yet been paid.
The dividends announced this week are:
Name of Company.
When
Per
Cent. Payable.
Books Closed.
Days Inclusive.
Railroads (Steam).
Alabama dc Vicksburg
Apr. 1 Holders of rec. Mar. 96
3
Atlantic Coast Line Co.(guar.)
*32.50 Mar. 10 *Holders of rec. Feb. 28
Boston & Maine,common (guar.)
•I
&
Av
ec:
r. 1 *Holders of rec. Mar. 7
7% prior preference (guar.)
*Holders of rec. Mar. 7
*134
First preferred class A (quar.)
'
134 Apr. 1 *Holders of rec. Mar. 7
First preferred class B (guar.)
Apr. 1 *Holders of rec. Mar. 7
*2
First preferred class C (quar.)
'
134 Apr. 1 *Holders of rec. Mar. 7
First preferred class D (guar.)
*234 Apr. 1 *Holders of rec. Mar. 7
First preferred class E (quar.)
*134 AM. 1 *Holders of rec. Mar. 7
6% preferred (quar.)
•134 Apr. 1 *Holders of rec. Mar. 7
Boston & Providence quar.)
234 Apr. 1 Holders of rec. Mar.20
Buffalo Rochester & Pittsburgh-No act ion tak em
n.
Erie & Pittsburgh (quar.)
87340. ar. 10 Holders of rec. Feb. 28a
Maine Central, common anal%)
131 Apr. 1 Holders of rec. Mar. 16
•
yi
Northern Pacific (quar.)
May 1 *Holders of rec. Mar. 13
Reading Company, 2nd pref. (quar.)*500. Apr. 9 *Holders of rec. Mar.19
Vicksburg Shreve.& Pacific corn.&['ref.
Apr. 1 Holders of rec. Mar. ea
1564
Name of Company.
Form 122.
FINANCIAL CHRONICLE
When
Per
Cent. Payable.
Books Closed.
Days Inclusive.
Name of Company.
Per
When
Cent. Payable.
Books Closed.
Days inclusive.
Miscellaneous (Continued).
Public Utilities
American Public Service, pref. guar.)._ *1% Apr. 1 *Holders of rec. Mar. 16
Canada Foundries dr Forg., el. A (qtr.). *3730 Apr. 15 *Fielders of roe. Mar.31
*3734c Mar. 16 *Holders of rm. Feb. 28
Apr. 15 Holders of rec. Mar. 31
Associated Telep. Utilities, corn. guar.). f2
Canada Malt Co., Ltd. (quar.)
by $7 prier preferred (guar.)
$1.75 Mar. 14 Holders of rec. Feb. 28
Canada Pulp & Paper, pref. (guar.)... 131 Feb. 16 Holders of rec. Jan. 20
44e. Apr. 10 Holders of rec. Mar. 25
Canadian Car & Fdy., pref. (quar.)
ba• $6 prior preferred (guar.)
$1.50 Mar. 14 Holders of rec. Feb. 28
134 Apr. 4 Holders of rec. Mar.21
, $6 convertible preferred A (guar.)... $1.50 Apr. 1 Holders of rec. Mar. 14
Canadian Cottons, pref. (quar.)
550c Mar. 14 *Holders of rec. Feb. 28
Baton Rouge Electric Co.. pref. A (qu.). •134 Mar. 2 *Holders of rec. Feb. 9
Canadian Fairbanks-Morse (guar.)
Apr. 15 Holders of rec. Mar. 23
Bell Telephone of Canada (guar.)
Capital Administration (Jan. 1 div.)-. *75c Mar.20 *Holders of rec. Mar. 10
*2
575e. Apr. 1 *Holders of rec. Mar. 20
Bell Telephone of Pa., 634% pref. (qu.) *1% Apr. 15 *Holders of rec. Mar. 20
Quarterly
*131 Mar. 16 *Holders of reo. Mar. 2
*50e. Mar. 1 *Holders of rec. Feb. 14
Butler Water, 1st pref. (guar.)
Cincinnati Milling Mach. corn. (411.)
Cables & Wireless, Ltd.Claude Neon Gen'l Advertising, pf. (qu.) 1 ii Mar. 15 Holders of rec. Feb. 28
•-ra% Apr. 6 *Holders of rec. Feb. 27
Claude Neon Elec. Prod., corn. (guar.) *400. Apr. 1 *Holders of rec. Mar.20
Amer. dep. recta. 534% pref
Apr. 7 Holders of rec. Mar. 23
1
*35e. Apr. 1 *Holders of rec. Mar. 20
Canada Light Et Power, corn.(No. 1)
Preferred (guar.)
*500. Apr. 1 *Holders of rec. Mar. 20
131 Apr. 15 Holders of rec. Mar.31
Canada Northern Power, pref. (quar.)
Clorox Chemical, class A & B (qu.)
Coats(L&P.)Ltd-Am.dep.rects.ord.reg.
tad Apr. 6 *Holders of rec. Feb. 20
Central States Power & Light, pt. (gu.). *$1.75 Apr. 1 *Holders of rec. Mar. 5
*61.75 Apr. 1 Holders of rec. Mar. 5
*81.75 Apr. 1 *Holders of rec. Mar. 12
Central States Utilities. pref.(quar.)
Coca-Cola Co., corn. (guar.)
•25e. Apr. 1 *Holders of rec. Mar. 12
Common (extra)
Consolidated Gas of N. Y., pref. (qu.)_ _ *$1.25 May I *Holders of rec. Mar. 28
50o. Mar. 31 Holders of reo. Mar. 11
Consolidated Water of Utica cl. A (qu.). *36340 Mar. 1 *Holders of rec. Feb. 16
Commercial Credit (Bait.) corn.(qu.)_
4334o. Mar. 31 Holders of roe. Mar. 11
7% first pref. (guar.)
Continental Gas & Elec., corn. (guar.)._ $1.10 Apr. 1 Holders of rec. Mar. 12a
$1.75 Apr. 1 Holders of rec. Mar. 12a
634% first pref. (guar.)
7% prior preference (guar.)
134 Mar. 31 Holders of rec. Mar. 11
500. Mar. 31 Holders of rec. Mar. 11
8% prefer. class B (guar.)
Diamond State Telep.. 634% Pref. (qu.) •134 Apr. 15 *Holders of rec. Mar.20
75c. Mar. 31 Holders of rec. Mar. 11
Eastern Gas & Fuel Assoc. pr. pf.(qu.)_• 51.125 Apr. 1 *Holders of rec. Mar. 15
$3 class A cony. stock (guar.)
•25o. Mar.31 *Holders of rec. Mar.10
Commercial Solvents (guar.)
'134 Apr. I 'Holders of rec. Mar. 15
Preferred (guar.)
Electric Power dr Light,$7 prof.(guar.). $1.75 Apr. 1 Holders of rec. Mar. 7
Continental Diamond Fibre, corn. (qu.) "25e.!Mar. 31 'Holders of rec. Mar. 16
1% Apr. I Holders of rec. Mar. 18
$1.50 Apr. 1 Holders of rec. Mar. 7
Continental Steel Corp., pref.(guar.)._
$6 preferred (guar.)
1
Mar. 16 Holders of rec. Feb. 28
500. Apr. 1 Holders of rec. Mar. 14
Empire District Elec. Co., pf.(mthly.)_.
Cookaville Co., Ltd., pref. (guar.)
Federal Water Service,$7 prof.(guar.). 41.75 Apr. 1 *Holders of roe. Mar. 16
Cosmos imperial Mills, pref. (guar.)... 13% Feb. 15 Holders of rec. Jan. 31
•• $1.625 Apr. 1 *Holders of rec. Mar. 16
•75c. Apr. 4 *Holders of rec. Mar. 21
Crowell Publishing (guar.)
$6.50 preferred (quar.)
"$1.50 Apr. 1 *Holders of rec. Mar. 16
*50c. Mar. 31 *Holders of rec. Mar. 10
Crowley Milner & Co. (guar.)
$6 Preferred (guar.)
.$1.50 Mar. 16 *Holders of rec. Mar. 2
Delaware Lackawanna & Western Coal- Divide nd Betio n postponed.
Gulf States Utilities, $6 pf. (guar.)
4, 51.375 Mar. 16 'Holders of roe. Mar. 2
•1% Mar. 1 'Holders of rec. Mar. 1
Dempster Mills Mfg., pref.(guar.)
$5.50 preferred (guar.)
"20c. Apr. 1 *Holders of rec. Mar. 14
Detroit & Cleveland Nay. (guar.)
134 Mar. 16 Holders of rec. Feb. 28
Indiana Hydro-Elec. Co., pref. (guar.)._
*11.75 Apr. 1 *Holders of rec. Mar. 5
*25e. Mar. 2 *Holders of rec. Feb. 24
Dinkier Hotels, class A (guar.)
Interstate Power, $7 Prof. (Oust.)
*15e. Mar. I *Holders of rec. Feb. 21
*$1.50 Apr. 1 *Holders of rec. Mar. 5
Dominguez 011 Fields (mthly.)
$6 preferred (guar.)
25e Apr. 1 Holders of rec. Mar. 13
*15e. Mar. 1 *Holders of rec. Feb. 21
Jamaica Public Serv.. corn, (guar.)
Extra
*51.25 Apr. 1 "Holders of rec. Mar. 14
1% Apr. 1 Holders of rec. Mar. 13
Dominion Textile, common (guar.)
Preferred (guar.)
*131 Apr. 15 *Holders of rec. Mar. 31
•134 Apr. 1 *Holders of ree. Mar. 14
IC•eses City Power er Lt., pf. B (qtr.).
Preferred (guar.)
$1 Apr. 1 Holders of rec. Feb. 28
"$1.50 Apr. 1 'Holders of rec. Mar. 18
Kings County Lighting, corn.(guar.)_
Draper Corp. (quar.)
20c. Apr. 1 Holders of ree. Mar. 7
•131 Apr. 1 *Holders of rec. Mar. 18
Durant Motors of Canada
7% preferred (guar.)
'134
M Mar. 31
5% preferred (guar.)
'131 Apr. 1 *Holders of rec. Mar. 18
Dutton (A. C.) Lumber, corn.(quar.)
"$1.75 Apr. 1 *Holders of rec. Mar. 14
•13% Mar. 31
Memphis Power er Light. $7 pf.(qu.)
Preferred (guar.)
*31.50 Apr. 1 *Holders of rec. Mar. 14
13% Mar. 15 Holders of rec. Feb. 28
$6 preferred (guar.)
Edison Bros. Stores, pref. (guar.)
*$1 Mar. 1 *Holders of rec. Feb. 15
Mohawk & Hudson Pow., pref.(guar.)._ $1.75 May 1 Holders of rec. Apr. 15
Edwards Dental Supply (guar.)
*131 Mar. 2 *Holders of rec. Feb. 24
$1.75 Apr. 1 Holders of reo. Mar. 16
Second preferred (guar.)
Eleetrogmphie Corp., pref. (guar.)
National Elec. Power, class B (guar.)._ *450 Mar. 31 *Holders of rec. Mar. 10
Elec. Storage Battery, corn.& pref.(qu.) $1.25 Apr. 1 Holders of rec. Mar. 9
•131 Apr. 1 *Holders of rm. Mar. 10
Feb. 20 'Holders of rec. Feb. 15
•1734c
7% preferred (guar.)
(guar.)
Fageol Seeur., 7% pref.
6% preferred (guar.)
•134 Apr. 1 *Holders of rec. Mar. 10
50o Mar. 28 Holders of rec. Mar. 6
Famous Players Canadian corp.(guar.).
'1% Apr. 1 *Holders of reo. Mar. 9
'Holders of rec. Mar. 10
Nat'l Public Serv. pref. A (guar.)
'131 Apr.
Federal Bake Shops, pref. (guar.)
*100 Apr. 1 *Holders of rm. Mar. 20
New England G.er.E.Assn. pref.(qu.)_• $1.375 Apr. 1 *Holders of roe. Feb. 27
Federal Motor Truck
New England Power Assn., corn. (qu.)
*50c Apr. 1 *Holders of rec. Mar.31
First Holding Corp. (Calif.), prof. (qu.). •134 Mar. 1 *Holders of rec. Feb. 20
6% pref. (guar.)
134 Apr. 1 Holders of rec. Mar. 105 First State Pawners Society (quar.)..._ *13% Mar. 30 *Holders of roe. Mar. 20
32340.Mar. 16 Holders of rec. Mar. 5
500 Apr. 1 Holders of rec. Mar. 10a Foote-Burt Co. (guar.)
$2 preferred (guar.)
N.Y.Power & Light Corp.,7% pf.(quo
131 July 1 Holders of rec. June 15
Foster Wheeler Corp.,common (guar.)._ *50e Apr. 1 *Holders of rec. Mar. 12
*51.75 Apr. 1 'Holders of rec. Mar. 12
$1.50 July 1 Holders of roe. June 16
$6 Preferred (quar.)
Preferred (guar.)
New York Telephone, pref.(guar.)
•134 Apr. 15 'Holders of rm. Mar. 20
Foundation Inv. Co.,6% pref. (qu.)...- •134 Mar. 15 *Holders of rec. Mar. 1
Niagara & Hudson Pow., corn,(qu.)__
•100 Mar. 31 *Holders of rm. Mar. 7
Franklin Commercial Discount, pref.-3 ivIden d omitt ed.
Northern Liberties Gas
Mar. 9 *Holders of rec. Feb. 9
•$1
"$1 Mar. 15 *Holders of rec. Mar. 5
Franklin Railway Supply (guar.)
Northern Ontario Power, corn. (guar.)._
50c Apr. 25 Holders of rec. Mar. 31
Gardner-Denver Co., common (quar.).. •400 Apr. I *Holders of rec. Mar.20
Preferred (guar.)
30c Apr. 1 Holders of rec. Mar. 14
Garlock Packing, core. (quar.)
134 Apr. 25 Holders of rec. Mar. 31
*12 34c Feb. 28 *Holders of rec. Feb. 20
Northwestern Utilities, 7% pr. lien (qu.) "134 Apr. 1 *Holders of rm. Mar. 14
Garner Royalty, class A (mthly.)
Penn Cont. Lt.& Pow.. $2.80 pl.(qu.)
"7013 Apr. 1 *Holders of rm. Mar. 10
General American Investors, prof. (qu.). *134 Apr. 1 "Holders of roe. Mar. 20
*40o Apr. 25 "Holders of rec. Mar. 13
*31.25 Apr. 1 "Holders of roe. Mar. 10
$5 Preferred (guar.)
General Electric, common (guar.)
Peoples Gas Light & Coke (guar.)
"2
*15c Apr. 25 *Holders of rec. Mar. 13
Apr. 17 'Holders of roe. Apr. 3
Special stock
Philadelphia Elec. Pow..8% pf. (qu.)
"25o Mar. 10 *Holders of roe. Feb. 24
"500 Apr. 1 *Holders of rec. Mar. 11
General Fire Extinguisher (guar.)
$1.2 Apr. 1 Holders of reo. Mar. 10
Public Sea.of N.H. $6 Prof. (guar.)._ •111.50 Mar. 16 *Holders of rec. Feb. 28
General Ry.Signal, corn.(qu.)
$5 preferred (quar.).,_ _
"31.25 Mar. 16 "Holders of rec. Feb. 28
134 Apr. 1 Holders of rec. Mar. 10
Preferred (quar.)
Apr. 1 Mar. 21 to Apr. 1
Public Sea.Co.of Okla.. corn. (guar.)._
act ion defe rred
sommon-Divide
nd
2
Gillette Safety Razor,
7% prior Ben stock (guar.)
*3
Feb. 26 'Holders of rec. Feb. 7
131 Apr. 1 Mar. 21 to Apr. 1
Greater Louisv.Say.& Bldg. Assn
1M Apr. 1 Mar. 21 to Apr. 1
6% Prior lien stock (guar.)
Great West. Eleotro Chem., 1st pf. (ea.) *$1.50 Apr. 1 *Holders of rm. Mar. 21
•131 Apr. 2 'Holders of rec. Mar. 14
Queensboro Gas & Elec.,6% prof.(cm). '134 Apr. 1 'Holders of rec. Mar. 20
Great Western Sugar, pref. (qllar.)
Southwestern Bell Telep., pref.(guar.)_ _
134 Apr. 1 Holders of rec. Mar.20
Hamilton United Theatres, pref. (qu.).. 131 Mar. 31 Holders of roe. Feb. 28
Twin City Rapid Tr., Mimi., pref.(qu.) *134 Apr. 1 'Holders of rec. Mar. 12
*15o. Mar. 31 *Holders of roe. Mar. 10
Hamilton Watch (monthly)
United Corporation, corn. (guar.)
'15 Mar. 21 'Holders of rec. Feb. 26
18340 Apr. 1 Holders of rec. Mar. 5
Harrods Ltd., Am.dep. rcts. ord reg
United Gas & Elec. Corp.. pref. (guar.). 131 Apr. 1 Holders of rm. Mar. 16
Heime (George W.) Co.,corn.(guar.)... $1.25 Apr. 1 Holders of rec. Mar. 10
Utilities Power & Light. class A (guar.). (r) Apr. 1 *Holders of reo. Mar. 5
13% Apr. 1 Holders of rec. Mar. 10
Preferred (guar.)
Winnipeg Electric Co., pref.(guar.)._
•75o. Mar. 25 "Holders of ree. Mar. 13
134 Apr. 1 Holders of rec. Mar. 6
Hercules Powder, corn.(guar.)
'6234e Apr. I 'Holders of rec. Mar. 16
Wisconsin Mich. Power.6% pref. (qu.)_ •134 Mar. 16 "Holders of rm. Feb. 28
Holland Furnace (guar.)
"25e. Mar. 10 *Holders of rec. Feb. 28
Honolulu Plantations (monthly)
•75c. Mar. 26 "Holders of rec. Mar. 11
Banks.
Hoskins Mfg. (guar.)
*500. Apr. 1 *Holders of rec. Mar. 2
Apr. 1 *Holders of rec. Mar. 20
Public National Bank & Trust guar.)._ "111
Refg.
(guar.)
Oil&
Humble
Apr. 1 *Holders of rec. Mar. 15
•2
Trust Companies,
Huron & Erie Mortgage (guar.)
400 Apr. 1 Holders of rm. Mar. 3
Irving guar.)
Imperial Tob. of Canada, corn.(guar.)._ 831e. Mar. 31 Holders of rec. Mar. 4
Mar. 31 Holders of rec. Mar. 4
3
Preferred
•25e. Apr. 15 "Holders of rec. Mar. 23
Miscellaneous.
Incorporated Investors (quar.)
Abbott Laboratories (guar.)
•6234 Apr. 1 'Holders of rea. Mar. 18
"234 Apr. 15 *Holders of rec. Mar.23
Stock dividend
Abitibi Power & Paper, 7% pref.(qu.)
131 Apr. 1 Holders of roe. Mar. 20
"234 Oct. 15 'Holders of rec. Sept.21
Stock dividend
Allied Chemical & Dye, Prof. (guar.)._
134 Apr. 1 Holders of rec. Mar. 7
•25e Apr. 1 *Holders of rec. Mar. 16
Independence Trust Shares
American Can. pref. (guar.)
134 Apr. 1 Holders of roe. Mar. 16a Insull Utility Invest., coin. (quar.)
'1154 Apr. 15 *Holders of rec. Mar. 14
Amer. Cash Credit, corn., class A (guar.) •15c Feb. 25 'Holders of rec. Feb. 7
'1.37 Apr. 1 *Holders of rm. Mar. 14
534% preferred (guar.)
'Sc.Feb. 25 'Holders of roe. Feb. 7
Common, class A (extra)
*15e. Mar. 25 *Holders of rm. Mar. 10
Interlake Iron (guar.)
'134e.Feb. 25 *Holders of rec. Feb. 7
Common, class 13 (guar.)
Mar. 31 *Holders of rm. Mar. 11
International Cement, corn.(quar.)_.. •$1
•50 Feb. 25 'Holders of roe. Feb. 7
Common. class B (extra)
650. Mar. 16 Holders of rec. Feb. 25
Internat. Proprietaries, class A (guar.)._
Mar. 1 'Holders of roe. Feb. 10
American Crayon (guar.)
*$2
*50c. Mar. 16 'Holders of roe. Mar. 2
Invest. Corp. of Philadelphia
Amer. Encaustic Tiling, corn.(guar.)... •250 Mar. 31 "Holders of rm. Mar. 10
Johansen Shoe, corn -Dividend omitted
•150 Mar. 10 *Holders of rm. Feb. 20
American Factors (monthly)
Johns-Manville Corp., corn. (guar.)_ _._
75e. Apr. 15 Holders of rec. Mar. 25
Amer. Furniture Mart Bldg., pref. (qu.) •131 Apr. 1 'Holders of rec. Mar. 20
Preferred (guar.)
154 Apr. 1 Holders of rec. Mar. 11
*50e Mar. 1 *Holders of rec. Feb. 20
American Hosiery (guar.)
Jones (J. Edward) Royalty TrustAmer. Home Products Corp.(monthly). •350 Apr. 1 *Holders of rec. Mar. I4a
Participation trust efts., series B
$13.45 Feb.
Amer. Invest. Co. (Ills.), class B (quar.) "150 Mar. 1 *Holders of rec. Feb. 24
Participation trust Ws., series C
$12.83 Feb.
"131 Mar.31 'Holders of rec. Mar. 10
Amer. Safety Razor (guar.)
500. Apr. 3 Holders of rec. Mar. 20
Kelsey-Hayes Wheel, corn. (guar.)
$1.50 Mar. 31 Holders of tee. Mar. 140 Kelvinator Co. of Canada, pref. (qtr.)._
American Surety (quar.)
131 Feb. 15 Holders of rec. Feb. 5
134 Apr. I Holders of rm. Mar. 10
American Tobacco, prof. (guar.)
Kentucky Rock Asphalt, pref.(qu.)
•134 Mar. 2 *Holders of rec. Feb. 17
•25e Apr. 1 *Holders of roe. Mar. 18
Armstrong Cork (guar.)
Kirby Lumber-Dividend deferred.
Atlantic Gulf & W.1.8.8. Lbles• PL(Qu.) '131 Mar. 30 *Holders of rec. Mar. 11
Kleinert (I. B.) Rubber-Dividend emitted.
'131 June 30 'Holders of rec. June 10
Kopiar Co. pref. (guar.)
Holders of rm. Feb. 20
Preferred (ouar.)
$1.10 Mar.
Holders of rec. Mar. 12
"131 Oct. 30 *Holders of rm. Oct. 10
Lane Bryant, Inc., core. (guar.)
Preferred (guar.)
25e. Apr.
4.111 Dec. 30 'Holders of rec. Deca 10
Holders of rec. Feb. 1
Preferred (guar.)
Langley Co., Ltd., pref. (quar.)
131 Feb. 1
Leader Mercantile Corp., corn -Divide nd passed
Avery B.F.)& Sons, 2nd prof.-Divide nd passed.
Backstay Welt Co. common (guar.)._ "25c Apr. 1 *Holders of rec. Mar. 20
35o. Mar.3 Holders of roe. Mar.11
LessIng's, Inc. (guar.)
'3731eMar. 31 'Holders of rec. Mar. 30
Lindsay Light, pref. (guar.)
Baldwin Rubber, class A (guar.)
"17340 Mar. 1 *Holders of rec. Mar. 7
"Holders of rm. Mar. 16
•350 Mar. 1 "Holders of rec. Feb. 20
•75e. Apr.
Loudon Packing (quar.)
Bancroft Hotel, Preferred
Apr. I *Holders of rec. Mar. 14
"Holders of roe. Mar. 16
"75e. Apr.
Mapes Consul. Mfg.(guar.)
Beatrice Creamery, common (guar.)... pi
'Holders of rec. Mar. 16
'134 Apr. 1 "Holders of rec. Mar. 14
.25o Apr.
Extra
Preferred (guar.)
Holders of roe. Mar. 13
50o Apr.
75c Apr. 1 Holders of rm. Mar. 12
Beech-Nut Packing, common (guar.)...
Mathieson Alkali Works, COM.(guar.)._
Holders of roe. Mar. 13
13% Apr.
"11.75 Apr. 1 'Holders of rm. Mar. 20
Preferred (guar.)
B-0 Sandwich Shops, pref. (qu.)
Holders of rec. Feb. 24
Mar.
May Hosiery Mills, pref. (guar.)
81
Efelgo-Canadlan Paper, preferred-DIvi dend 0 milted
*Holders of rec. Mar. 20
McLellan Stores.
es pref. A & B (guar.)... "134 Apr.
Bentley Chain Stores,Inc., preferred- Dividend omit fed
*Holders of roe. Mar.20
Apr.
Black dr Clawson. corn. & Pref. (guar.). "154 Mar. 1 *Holders Of roe. Feb. 25
MickelherrY's Food Products, pref. (qu.) "87340
•Ps1
Apr.
"Holders
of rec. Mar. 14
1
*Holders
Apr.
of
reo.
18
Mar.
•131
Midvale Company (guar.)
Blumenthal (Sidney) & Co., pref. (qu.)
Holders of rm. Feb. 5
'5631cMar. 1 *Holders of roe. Feb. 21 Model Oils
3e Mar. 1
Hobbs-Merrill Co. (Mar.)
Mar. 2 'Holders of rec. Feb. 14
*3
'13131 cApr. *Holders Arm. Mar. 10
Monsanto Chemical Works (guar.)
Boott Mills (qua!'.)
Holders of rec. Feb. 21
% Mar.
Morrison Bross Corp., Ltd., pref. (guar.) 15
Borne Scrymser Co.-Dividend omitted
50o Mar.3 Holders of rec. Mar. 14
Myers (F. E.).ir Bros., COM.(guar.)._
Boston Woven Hose & Rub., emu.(qu.) $1.50 Mar. 2 Holders of rec. Mar, 16
Holders
of rec. Mar. 14
3
Mar.
2
*Holders
Mar.
of
rec.
134
Feb.
20
*11
Preferred (guar.)
Brennan Packing class A (guar.)
"Holders of rec. Mar. 16
es1 June 1 *Holders of rm. May 20
*40c. Apr.
National Breweries (guar.)
Claes A (guar.)
'Holders of roe. Mar. 16
"44e Apr.
*SI Sept. 1 *Holders of rec. Aug. 20
Preferred (guar.)
Class A (guar.)
National Brick of Lapralrie, pref.-DIvi dend p assed.
•S1 Dee. 1 "Holders of rec. Nov.20
Class A (guar.)
"25e Mar. 2 "Holders of reo. Feb. 20
National Protective COS.. Pref.-Divideu d defer red.
Class B (guar.)
*50c Mar. 16
*25c June 1 *Holders of roe. May 20
National Sewer Pipe, corn
Class B (guar.)
•600 Mar. 16
4.250 Sept. 1 *Holders of rec. Aug. 20
52.40 preferred A (guar.)
Class B (guar.)
50e Apr. I Holders of reo. Mar. 17
•25c Dee. 1 "Holders of rec. Nov. 20
National Steel Car Corp. (guar.)
Class B (guar.)
"500 Mar. 10 *Holders of roe. Mar. 3
150 Apr. I Holders of rec. Mar. 160 National Steel Corp.(quar.)
Halo Mfg., common (guar.)
131 Mar. 31 Holders of roe. Mar. 21
50c Apr. 1 Holders of rec. Mar. 16a National Supply of Del., pref. (guar.)._
Class A (guar.)
$1.25 Apr. I Holders of rec. Mar. 18a
*500 Mar. 31 'Holders of rec. Mar. 20
National Surety Co. (guar.)
Briggs & Stratton, common (quar.)
*15e Mar. 2 'Holders of roe. Feb. 21
Nehl Corp.,(War.)
British Amer. Royalty, Ltd. (guar.)... *ago Mar. 2 *Holders of rec. Feb. 27
•25e Apr. 1 *Holders of roe. Mar. 10
Mar. 31 See note (m).
Nelson (Herman) Corp.(guar.)
Brit.-Amer. Tob., pref. reg
234
Mar. 2 *Holders of rec. Feb. 23
•131
of
coup.
Holders
No.
Mar.
31
614%
55
Of.
Laundry
91113
New
Method
254
Preferred, bearer
25c Apr. 15 Holders of rm. Mar. 20
New York Transit (guar.)
Bunker Hill & Sullivan Mining & ConApr. 15 Holders of rev. Mar. 25
corn. (quar.)
Niagara Share Corp.,100
"25c Mar. 5 *Holders of roe. Feb. 26
centrating (monthly)
11.50 Apr. 1 Holders of rec. Mar. 20
Preferred (guar.)
Bush Terminal Co.,corn.(guar.)
*6230 May 1 *Holders of ree. Apr. 3
Nichols Copper Co., cl. A ez V (guar.).- .250 Apr. 1 *Fielders of rec. Mar. 20
Debenture stock (guar.)
'131 Apr. 15 *Holders of rec. Apr. 3
eM Apr. 1 Holders of ree. Mar. 1
Securities
rec.
'Holders
Mar.
American
15
of
North
1
Apr.
Bush Terminal Bldgs.. Prof.(au.)
•131
FEB. 281931.]
Name of Company.
FINANCIAL CHRONICLE
When
Per
Cent. Payable
Books Closed.
Days Inclusive.
Miscellaneous (Concluded).
Nova Scotia Shipping. pf.(mi.)
Feb. 28
Oahu Ky.& Land (monthly)
*150. Mar. 16 *Holders of rec. Mar.11
Ontario Loan & Debenture (guar.)
$1.50 Apr. 1 Holders of rec. Mar.16
Pacific Indemnity (guar.)
*350. Apr. 1 *Holders of rec. Mar.15
Pacific Southwest Disc., cl.A
B(guar.) *I00. Mar. 1 *Holders of rec. Mar. 1
Mar. 4 "Holders of rec. Mar. 1
*2
8% preferred (guru.)
Peerless Laundry Service, corn. (mthly.) •8 1-3c Feb. 1 *Holders of rec. Feb. 10
•58 1-3c Feb. 1 *Holders of rec. Feb. 10
$1 prefaced (monthly)
Penney (J. C.) Co., corn. (guar.)
60c. Mar. 31 Holders of rec. Mar. 20
b. Preferred (guar.)
141 Mar. 31 Holders of rec. Mar. 20
Perfect Circle Co.(guar.)
50o. Apr. 1 Holders of rec. Mar.20
Petroleum Exploration, corn. (guar.)_
•250. Mar. 16 *Holders of rec. Mar. 2
Petroleum Royalties of Okla. (mthly.)
*100. Mar. 1 *Holders of rec. Feb. 25
Phoenix Securities Corp., pref.(quar.)
*750. Mar. 1 *Holders of rec. Feb. 26
Port Alfred Pulp & Paper, pref.-Divid end o mitted
.1,1% Apr, 1 *Holders of rec. Mar.
Pure Oil Co., 5%% Pref. (quar.)
10
*14i Apr. 1 *Holders of rec. Mar. 10
6% Preferred (guar.)
*2
8% preferred (guar.)
Apr. 1 *Holders of rec. Mar. 10
Quaker Oats, common (guar.)
Apr. 15 *Holden of rec. Apr. 1
*51
Common (extra)
Apr. 15 *Holders of rec. Apr. 1
*53
•1M May 29 'Holders of rec.
Preferred (guar.)
May 2
Reliance Grain Co., pref. (guar.)
1% Mar. 14 Holders of roe. Feb. 28
Reliance Mfg. (Ohio) corn. (guar.)
•500. Apr. 1 'Holders of roe. Mar. 16
Republic Realty Mtge. (Chic.) (mthly.)
•9o. Mar. 1 *Holders of rec. Feb. 26
Preferred (monthly)
•60o. Mar. 1 "Holders of rec. Feb. 26
Rike-Kumler Co., common (quar.)
550. Apr. 1 Holders of rec. Mar. 16
•1,‘ Apr. 1 *Holders of rec. Mar.24
Preferred (guar.)
Rogers-Majestic Corp. (guar.)
30c. Mar. 1 Holders of rec. Feb. 20
Royal Baking Powder, common (guar.) *25e. Apr. 1 *Holders of rec. Mar. 9
Preferred (guar.)
*1.41 Apr. 1 *Holders of roe. Mar. 9
Royal Management Corp., A & B(mthly) •341c. Mar. 2 *Holders of rec. Feb. 20
Royalties Ss Stand.Shares, pref.(mthly.) •731o. Mar. 1 *Holders of rec. Feb. 25
Ruberold Co. (guar.)
Mar. 14 *Holders of rec. Feb. 28
*El
Safeway Stores (guar.)
*51.25 Apr. I *Holders of rec. Mar. 18
7% preferred (guar.)
1% Apr. 1 Holders of rec. Mar. 18
141 Apr. 1 Holders of rec. Mar. 18
6% Preferred (guar.)
St. Louis Screw & Bolt, corn. (quar.)_
5741c. Mar. 1 Holders of rec. Feb. 23
St. Maurice Valley Corp.. pref.-Divide nd om tted
Schettler Drug, pref. A (monthly). --* 11 2-3c Mar. 15 *Holders of rec. Feb. 28
Scott Paper (quar.)
•35o. Mar. 31 'Holders of rec. Mar. 17
Scovill Mfg.(guar.)
*500. Apr. 1 *Holders of rec. Mar. 16
Second (Laura) Candy Shops, cam.(a.) 750. Mar. 2 Holders of rec. Feb. 16
Second Internat'l Sec., clam A (quar.)
"25o. Apr. 1 *Holders of rec. Mar. 15
First and second pref. (guar.)
*75c. Apr. 1 *Holders of rec. Mar. 15
South Penn Oil (guar.)
•250. Mar. 31 'Holders of roe. Mar. 14
South Texas Cotton Oil (guar.)
"25e. Mar. 1 *Holders of rec. Feb. 20
Southwest Pa. Pipe Lines (guar.)
Apr. 1 *Holders of rec. Mar. 16
*51
SParta Foundry Co.(guar.)
750. Mar. 31 Holders of rec. Mar. 15
Standard Brands, cons. (guar.)
*300. Apr. 1 *Holders of rec. Mar. 9
Preferred (guar.)
•1% Apr. 1 *Holders of roe. Mar. 9
Starrett Corp., Prof. (guar.)
*75c. Apr. 1 *Holders of rec. Mar. 14
Standard Clay Products
"52 Feb. 16 *Holders of rec. Jan. 3
Standard Oil (Kentucky) (quar.)
*400. Mar. 31 *Holders of rec. Mar. 16
Steel Co.of Canada, coin.& pref. (guar.) •43140 May 1 *Holders of rec. Apr. 7
Strawbridge & Clothier, 7% pref. (guar.) *1% Apr. 2 *Holders of rec. Mar. 16
Struthers Wells Titusville, pref. (quar.)_ 4,1% Feb. 15
Sullivan Machinery-Dividend action po stpone d.
Superior Portland Cement,al. A (mthly.) *27410 Apr. 1 *Holders of rec. Mar.23
Telephone Bond & Share, corn. A (extra) •250 Apr. 15 *Holders of rec. Mar.25
Traung Label & Litho., class A (quar.) '37H0 Mar. 16 *Holders of rec. Feb. 28
Union Carbide & Carbon (guar.)
650. Apr. 1 Holders of rec. Mar. 4
United Aircraft & Tr.. Pref.
•750. Apr. 1 *Holders of rec. Mar. 10
•IM Apr. 1 *Holders of rec. Mar. 13
United Dyewood, pref. (guar.)
United Securities, Ltd
Apr. 10 *Holders of rec. Mar. 23
*2
U. S. Leather, prior preferred (quar,). *1% Apr. 1 *Holders of rec. Mar. 10
Utica Steam & Mohawk Val. Cot. Mills- *51 Feb. 14
Vanadium-Alloys Steel (guar.)
*500. Mar.31 *Holders of rec. Mar.20
•1% Mar. 10 *Holders of rec. Mar. 1
Vapor Car Heating, pref. (guar)
0,1% June 10 *Holders of rec. June 1
Preferred (guar.)
•13.i Sept. 10 *Holders of rec. Sept. 1
Preferred (guar.)
•15i Dec. 10 *Holders of rec. Dec. 1
Preferred (guar.)
Ward Baking, pref. (guar.)
1% Apr. 1 Holders of rec. Mar. 17
Warner Co., common (guar.)
*500. Apr. 15 *Holders of reo Mar. 31
) First and second Preferred (quar.)---- "51.75 Apr. 1 *Holders of rec. Mar. 14
egg
Apr. 1 *Holders of rec. Mar. 20
Webster-Eisenlohr, Inc., pref. (quar.)._
Wellington Oil (guar.)
*30. Mar. 15 *Holders of rec. Feb. 28
Wesson Oil & Snowdrift, common (qu.)500. Apr. 1 Holders of rec. Mar. 14
Weyenberg Shoe Mfg., pref. (quar.)__._ *I% Mar.15 *Holders of rec. Mar. 5
Wheeling Steel Corp.. pref. A (guar.)... *2
Apr. 1 *Holders of rec. Mar. 12
Preferred B (guar.)
•241 Apr. 1 *Holders of rec. Mar. 12
Wood (Alan) Steel Corp.. prof.(quar.)
*1% Apr. 1 *Holders of roe. Mar. 10
Eonite Products Corp. (guar.)
25o. Mar. 10 Holders of rec. Mar. 2
Below we give the dividends announced in previous weeks
and not yet paid. This list does not include dividends announced this week, these being given in the preceding table.
Name of Company.
When
Per
Coal. Payable.
Books Closed,
Days Inas:fee.
Railroads (Steam).
Atch.,Topeka & Santa Fe,corn.(qua?.). 234 Mar. 2 Holders of rec. Jan. 306
Atlanta & Charlotte Air Line By
•441 Mar. 2 'Holders of rec. Feb. 20
Atlanta & Charlotte Air Line By
•44.1 Sept. 1 *Holders of rec. Aug. 20
Baltimore & Ohio,common (oust.)
1% Mar. 2 Holders of tee. Jan. 170
Preferred (guar.)
1
Mar. 2 Holders of ten. Jan. 170
Bangor & Aroostook, corn.(guar.)
880. Apr. 1 Holders of rec. Feb. 250
144 Apr. 1 Holders of rec. Feb. 28a
Preferred (guar.)
Beech Creek (guar.)
*50c. Apr. I *Holders of rec. Mar. 16
Boston & Albany (guar.)
2
Mar.31 Holders of rec. Feb. 28
Canadian Pacific, ordinary (guar.)
6241e. Apr. 1 Holders of rec. Mar. 2a
Preference
Apr. 1 Holders of rec. Mar. 2
2
Chesapeake Corp., common (guar.)
75c. Apr. 1 Holders of roe. Mar. 76
Chesapeake & Ohio, common (quar.)6231c Apr. 1 Holders of rec. Mar. 7a
Preferred
334 July 1 Holders of rec. June 8a
Chestnut Hill (guar.)
75c. Mar. 4 Feb. 21 to Mar. 3
Chicago & North Western, corn.(guar.) 1
Mar.31 Holders of rec. Mar. 2a
Preferred (guar.)
Mar.31 Holders of rec. Mar. 2a
Cm. New On.& Tex.Pao., pref.(guar.). *15' Mar. 2 *Holders of rec. Feb. 16
Cleveland & Pittsburgh, guar. (guar.). 875'o. Mar. 2 Holders of rec. Feb.
10a
Special guaranteed (guar.)
500 Mar. 2 Holders of rec. Feb. 10a
Columbus & Xenia (guar.)
•51.10 Mar. 10 *Holders of rect. Feb. 25
Consolidated Kit's of Cuba, pref.(guar.) 141 Apr. 1 Holders of rec. Mar. 10a
Cuba Northern Rye., common
$1.43 Mar. 30 Holders of rec. Mar. 30a
Cuba RR., common
800 Mar. 30 Holders of rec. Mar. 350
Delaware dr Hudson Co. (guar.)
244 Mar.20 Holders of roe. Feb. 26a
Hartford & Connecticut Western
Feb. 28 'Holders of rec. Feb. 20
*1
Illinois Central, common (guar.)
114 Mar. 2 Holders of rec. Feb. tia
Preferred
Mar. 2 Holders of rec. Feb. 6a
8
Maine Central, pref. (guar.)
144 Mar. 2 Holders of rec. Feb. 16
Maryland & Pennsylvania (guar.)
Apr. 10 *Holders of rec. Mar.31
*2
Mill Creek & Mine Hill Nay. & RR
*51.25 July 9 *Holders of roe.
8
MissoUri-Kansas-Texas, prof. A (guar.). 154 Mar.81 Holders of roe. July
Mar. 50
New Orleans Texas & Mexico (guar.).- 1% Feb. 28 Holders of rec. Feb. 136
N.Y.Chic.& St. Lou.,cons.asp!. A (qu) 141 Apr. 1 Holders of rec. Feb. 16a
N.Y. N. H.& Hartford, corn.(guar.)._
141 Apr. 1 Holders of rec. Mar. 6a
Preferred (guar.)
1% Apr. 1 Holders of rec. Mar. 6a
Norfolk Or Western,common (guar.) 241 Mar.19 Holders of rec. Feb. 250
s3
Aug. 1 *Holders of rec. July 20
North Carolina RR..7% guar. stock
Northern RR.of New Jersey (Oust.).... *1
Mar. 1 *Holders of rec. Feb. 18
Pennsylvania (guar.)
Feb. 28 Holders of rec. Feb. 2a
$1
Pere Marquette. common (guar.)
141 Apr. 1 Holders of rec. Mar. 7a
Preferred and prior preference (guar.) 134 may 1 Holders of rec. Apr. 4a
Peterborough RR
*15' Apr. 1 *Holders of tee. Mar.25
Phila. Germantown & Norristown (qu.)
$150 Mar. 4 Feb. 21 to Mar. 3
Pittab. Youngs.& Ashtabula, Prof.(qu.) 15' Mar. 2 Holders of roe. Feb. 20a
Reading Co.. 1st pref.(guar.)
50c Mar. 12 Holders of rec. Feb. 19a
Name of Company.
Railroads (Steam) (Continued).
St.Louis-San Francisco.6% pref.(an.).
6% preferred (quar.)
8% preferred (guar.)
Southern Pacific Co. (guar.)
Southern By.common(guar.)
Common (guar.)
Union Pacific, corn. (guar.)
Preferred
United N.J. RR.& Canal Cos.(guar.).
1565
Per
When
Cent. Payable.
Books Closed.
Days Inclusive.
May 1 Apr. 12 to May 12
Aug. 1 Holders of reo. July in
Nov. 2 Holders of rec. Oct. la
Apr. 1 Holders of rec. Feb. 240
May 1 Holders of rec. Apr. la
Aug. 1 Holders of rec. July la
Apr. 1 Holders of rec. Mar. 2
Apr. 1 Holders of rec. Mar. 23
Apr. 10 *Holders of rec. Mar.19
Public Utilities.
Alabama Power. 57 pref.(QUM%)
51.75 Apr. 1 Holders of roe. Mar.14
$6 preferred (guar.)
$1.50 Apr. 1 Holders of too. Mar.14
$1.25 May 1 Holders of rec. Apr. 15
55 preferred (quar.)
Alabama Water Service, $6 pref. (guar.) *51.50 Mar. 1 *Holders of rec. Feb. 20
American Electric Power, 57 pref. (au.) $1.75 Mar. 16 Holders of rec. Feb. 28
$6 preferred (quar.)
51.50 Mar. 2 Holders of rec. Feb. 20
Amer. Power & Light, corn. (guar.).- 25e. Mar. 2 Holders of rec. Feb. 146
55 preferred stamped (guar.)
51% Apr. 1 Holders of rec. Mar. 14a
$5 preferred (qua?.)
Aim. 1 Holders of rec. Mar. 14a
SI
$6 preferred (guar.)
51.50 Apr. 1 Holders of rec. Mar. 144
Amer. Teleg. & Cable (guar.)
1% Mar. 2 Holders of rec. Feb. IS
Amer. Telep. & Teta,. (guar.)
2% Apr. 15 Holders of rec. Mar. 146
American Water Works & Electrio56 1st preferred (ivar.)
51.50 Apr. 1 Holders of rec. Mar.120
Arizona Power,8% pref.(guar.)
Apr. I *Holders of rec. Mar,24
*2
7% preferred (guar.)
Apr. I *Holders of rec. Mar.24
Associated Gas & Elec.$5 pref.(Quar.)- 51.25 Mar.16 Holders of rec. Feb. 16
56 preferred (guar.)
$1.50 Mar. 2 Holders of rec. Jan. 31
$6.50 preferred (guar.)
51.625 Mar. 2 Holders of rec. Jan. 31
Bangor Hydro Elec. Co., 7% pref. (qu.) .01,‘ Apr. 1 *Holders of roe. Mar. 10
6% preferred (qua?.)
•141 Apr. 1 *Holders of roe. Mar. 10
@FedFRASER