Full text of Commercial and Financial Chronicle : February 28, 1946, Vol. 163, No. 4468, Section 2

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Final Edition

Volume 163

New York, N. Y.,

Number 4468

I rv2 Sections

OVERkm
tSSS

ESTABLISHED

Thursday, February 28, 1946

Section 2

Price 60 Cents

Copy,

Wains oi Severe

Observations

Inflation

=By A. WILFRED MAY:

Thomas 1. Parkinson of Equitable
Life Assurance Society Declares

Chester Bowles ought to take an extended vacation and
give the long-suffering people of the United States a good
Government's
Policy of Cheap rest. They need it. But before Mr. Bowles leaves Wash¬
Money Is a Tax on Thrifty and
ington he might send some of his bright yoiing assistants
Has Dangerous Inflationary Po¬
over to the Treasury Department and to the Board of Gover¬
tentialities.
Says Life Insurance nors of the Federal Reserve
System to gather together some
Beneficiaries Will Suffer and Out¬ f
igures on what is commonly now known as the money supply
But of far greater import will be the discrimination against in¬ lines
Four Point Remedial Program from which
they might fashion certain charts for; the en¬
dividual businesses levied in correlation with the importance to them
Warning against the possibility
of their labor costs.
In penalizing the giving of employment, the
lightenment of the gentleman who appears to be under the
of severe inflation unless decisive
broad social interest is harmed. And in the long run, the policy will
delusion that he already knows all the answers.
We assume
steps attacking the fundamentals
penalize labor interests themselves, in goading industry to escape
rather than symptoms of the dis¬ that he must be wholly in ignorance of such things, for
to labor-saving inventions.
It should be remembered that the
ease are taken
otherwise he could hardly have kept a straight face when
technocracy movement thus received a great boost from the wage
now,
Thomas
he was talking to .the House Banking and Currency Com¬
Squeezes following World War One.
I.
The effect

corporate welfare of the new wage-price executive
order, as interpreted by Mp. Bowles, is to reinstate the process of
renegotiation in peacetime, in a manner far more unfair than was
done dm war business. Under the technique of wage-price-squeeze
by administration, which will set prices and wages to conform to
Individual ceilings on profits, the fruits of competitive management
ability will be emasculated.
:
?
^
on

This

new

"labor taxation" is likewise

worse

than wartime

negotiation; in that its administration—regarding both

Parkinson,

re¬

President

and

wages

The

prices-^-will follow political motivations in various phases.
*

Life

mittee last week.

Equitable
Mr. Bowles and

Assur¬

ance

Society of

the

United

"Purchasing Power'*

Once such information is

placed before him, we are
knowing how what
dollar advertising campaign for OPA dissolution was placed through
he likes to call "purchasing power" in the hands of the
the Benton & Bowles agency, his former associates?
annual
meet¬
rank and file of the people, ever reached such astronomical
ing of the So¬
In
its
proportions. He certainly' would want to be assured that
behavior
in
the
sweeping; stock market declines, ciety's direc¬
the processes by which the staggering growth in these sums
the investment and speculative community is giving another perfect tors on Feb¬
demonstration of its habitual manic-depressive psychosis—that.f is,
came about had now been brought to an end and, indeed,
ruary 21, de¬
in successively interpreting identical events in diametrically opposite
clared that the
reversed.
When he learned that nothing of the sort has
ways. This should be obvious from a brief perusal of-'thei^'reasons"
Government's
beers done or is apparently in contemplation; that, indeed,
advanced (ex post facto) for the sudden torrent of selling?
policy of
The most-frequently stated cause of the break is "reversal of
several programs believed by Mr; Bowles' associates—to say
'cheap money'
inflation psychology"—but the underlying inflationary forces, mone¬
is not: only a
nothing of his "Big Chief'—-to be necessary to make pros¬
tary and otherwise/ surely are now j ust as potent as they were on hidden
tax
perity certain must, if given effect, continue the process of
Feb. 2 last when the stock averages hit their bull market highs.
u p o n.the
Prospective; first quarter earnings reports are blamed—but recent
adding continuously to the supply of money—when "Mr.
thrifty of the country, but has
Bowles hears of all this, he himself might feel the need of
quarterly showings were just as bad, and in any event it was recog¬
nized that the market was not capitalizing so highly the earnings of dangerous inflationary potentiali¬
heather prolonged stay in some quiet nook where he could
such a short period. The possibility of war with the Soviet is ad¬ ties fof the future.
do" some real thinking,
When he had taken full advantage
vanced as a market bugaboo—but surely our relations with Marshall
"Declining interest ?ates and
Stalin are now no less dovelike than they were at Yalta, San Franrising prices, both of which are ,q£ such an opportunity he would, we are quite confident,
Can Mr. Bowles* great peeve at the "irresponsible" NAM possibly
be at all attributable to his knowledge that the latter's two million

■»

(Continued

certain that he would be interested in

States, in ad¬
dressing the

on page

1139)

results of the Government's

(Continued

'cheap

on page

1136)

money' policy, are working a hard¬

ship

Objections to St. Lawrence Seaway

all life insurance policy¬

who have savings or are saving

By HON. JAMES M. MEAD*
U. S. Senator from New York

holders and all other Americans

International Aspects of

for the" future of themselves and

vjl

:
;

Mead, After Reviewing Legislative History of St. Lawrence
Project, Maintains That It Would Affect New York Ports Adversely,
and Would Cripple Great Lakes Skipping.
Says We Already Have
a Surplus of Transportation
Facilities, and That New Developments
in Existing Transportation Will Increase Capacity 50%.
Points
Out Need of Protecting the Railroads and Shipping Against Cheap
Foreign Competition and Contends That Because Seaway Would Be
Closed Five Months of Year, Railroad Facilities Will Be Still
Needed but Earnings Would Decline

By DEAN ACHESON*

Editorial

labor

From

Greatly*

desire

speak to you
today ; from
the viewpoint
of
the legis¬

himself with the information that

the

hearings

and

debates

In the matter

and

facts

for

the

and

'fore

legislature on several I
;
occasions.
On July 18, 1932, the
i

justi¬

him

Governments of the United States

be-

and

for

ton, the Great Lakes-St. Lawrence

Canada

signed

*An
Sen. James M. Mead

address

before

the

•

♦vi "V•#

•

♦

i»«•«•»*.,,

deemed Through Dec. 31,1945.... *1076

Nov. 30..,...;va.....*1071
Bank Debits for

January

*1077

Group

the evidence before the
the jury. The legislator
be expected to be inti¬

Lawrence

judge

D. C

Labor

and

Industry

Changes

* 1077

Reacquired Stock

Holdings
Department Store

opposition

Seaway,

"F°h. 25. 1946.

(Continued

the

St.

Washington,
k

•£

t >

1141)

Sales

District for December..&

items

/,v

..*1077

*1078

*These

oft page

:r v-

appeared

of Feb, 25, on pages indicated.

our

continent.

old

the

history of our
country.
The search for
w a ter
unica-

easy

the
of

world

and

r a

*Statement by Under Secretary

years ago.

the

Senate Com¬

cheson before the

ers *

through this
route;, 400

United

not a

by Canada of the Welland
connecting Lake Ontario
and Lake Erie. Today the Great

explorers

iasu# tury

Seaway is

Canal

carry

commerce

the

The

and

c o m m

tion

the

project. In fact the legisla¬
tion before you provides merely
for a series of improvements of an
already existing inland waterway
which are the logical sequel to the
construction by the United States
of such great works as the MacArthur Locks at Sault Ste. Marie

its concep¬

tion

new

Sea¬

lands and
interior of our

Ocean to the great farm

The St. Law-

way

waterway from the Atlantic

factories

Basin.

rence

development

worked towards the

Lawrence

St.

led

struction

by Senator Mead

1143

Cotton Ginnlngs Prior to Jan. 16..*1076
U. S. Savings Bonds Issued and Re-

mony

cannot

*'*

January Civil Engineering ;Oon-

The rec¬

ord, to him, is
,like the testi-

indexes ^

Washing¬ I Bankers' Dollar Acceptances at

determina¬
tion,

Weekly Coal and Coke Output.
1144
Weekly Steel Review.....
.,.,,.1146
Moody's Daily Commodity Index..1144
Weekly Crude Oil Production..... .1146
Non-Ferrous Metals Market.,.,..,..1145
Weekly Electric Output....
1144
Federal Reserve December Business
i

of the St. Law¬

national

fication of the

proposals

Fertilizer Association Price Index...1145

rence
Seaway,
the
record
is
voluminous, it is of long standing
and it has been presented to the

the record for
the

body

developing one of the greatest natural

Lakes-

Great

increase the

of the legislation before you is to

world, the

the
.1135

...

Commodity Prices, Domestic Index. 1143
Weekly Carloadings
.1147
Weekly Engineering Construction. .1146
Paperboard Industry Statistics.... .1147
Weekly Lumber Movement
1147

must familiarize

is presented to the legislative
to which he belongs.

who
to

looks

and

can

The purpose

wealth of the United States by
r e s o urces

State of Trade
General Review

try of the community he serves.

lator

;

Trading on New York Exchanges.. .1145
Odd-Lot Trading
..1145
NYSE Short Interest Febi; 15.1147

problems that affect each indus¬
But he

1133

and Trust Cos.. 1148

NYSE

mately acquainted^ from the point
of view of experience, with the

.1135
.......................

Moody's Bond Prices and Yields... .1144

point

manufacturer.

Expand Our Power Resources, and
Construct Holds
Waterways Treaty With Canada Will Improve Our Internationa!
Relations and That the Expenditure of U. S. Funds for Improve¬
ments in Foreign Countries Is Not Without precedent.

Washington, Ahead of the

Items About Banks

Developing

Says It Will Pro¬

Is Within Constitutional Powers of Congress to

News

Observations

Project

Natural Resources.

•>

;

National Security; Will

mote

Regular Features

past you have heard from speakers who have represented
who have spoken for the shipping or the railroad interests or

of view of the

Situation—

Financial

One of the World's Greatest

Page
..1133

of State

Mr. Acheson Advocates the St. Lawrence

•^•v:.vV.-:5,V 'X'kfy.

In the

: from the

Under Secretary

GENERAL CONTENTS

Seaway

; St.; Lawrence

(Continued on page 1139)

Senator

Dean G. Acheson

»,

For over half
governments

States ^and

Canada

cen¬

the
have

Relations Con¬
sidering the St. Lawrence Water¬
way and Power Pro j bet, Feb. 18,

mittee of Foreign

1946.

rContinued

~
on nage

•

1140)

THE COMMERCIAL &

1134

Senate Group

Favors
Mininmum Wage Raise

Almost Incredible!
.

prices.
v

increase

5&';£<

...

"Let
'

coinpany'made a formal application to
above the 1942 Ford ceiling

The Ford

for

OPA

again emphasize that this outrageous
illustrates rather clearly what

me
*

„

request

public would be paying
cars today if price
controls were not in effect."

-the

■

under the •measure,

limited

automobiles

production

interest. A total

fixed
mum

cars

Henry

passenger

theFord Motor Company

2nd

Ford,

of 39,910 was
of

Chester

Bowles

produce during the last
six months of 1945.

"Obviously you cannot make 39,910 cars in six months
in a plant - designed to produce more than 100,009 every
month without greatly increasing production cost per unit.
Low-cost depends on volume production, as everyone knows.
So when the United States Government-—not the Ford Motor

Company—fixed production volume it thus
and

determined cost

selling price.
"Let

give a specific example.

We decided that

32,750 of the 39,910 automobiles permitted should be Fords.
The rest were to be Mercurys and Lincolns.
The limitation

quantity fixed our estimated cost on the most popular
Ford model at $991.57.
The f. o. b. sales price, which in¬
cluded a 5% profit and the usual dealer commission thus be¬
came $1,388.20.
This turned out to be 55% more than our
last peacetime selling price of $895.
,
'We immediately filed application on prices for; these
low-volume, high-cost, wartime cars tinder OPA's wartime
general maximum price regulation.
"This action had nothing whatever to do with peacetime
on

;
''

»■

and Use of Government

Inflation.Attacks Continued Expansion

Credit and Guarantees and Calls for: a Free = Economy Under ihe

i: passed, as

"Price System" With

Individualism

Hope of Country.

For r»y part of tonight's program ! have accepted the thesis dfh
T^An immediate increase In the the current year's overall topic of this fine 6rganization~"Our World
7'77;'.... 7"';"7/: w
minimum wage from 40c to'65c an" to Build"—a timely and challenge<$777 ' 77.7, ■.
Economic Ignorance
hour for two years. The minimum ing topic. •
Economic ignorance today en¬
; And as I think of the challehge
Would then go to 70 cents an houi
Which this building job holds dangers our traditional voluntary
for a period of two years anc
would then rise to 75 cents ar, 7or all of us, I am reminded of a economic system; There are evan-;
artoon that appeared a few days gelists of : de-AmericanizatioiL at i
hour.
2. About 2,000,000 workers no
ago in the Boston "Traveler," It work in our country and the ideas
CO vered; by 4he\ present Minimum' was one of Galbraith's cartoons, they propagate, many of which
Glances." Mrs. Professor are loaded like revolvers and
wage law would be, covered by the "Side
new actSmith was being introduced—per¬ aimed straight at the heart of
3. New coverage would be ex¬
traditional America^ find root an<f
haps at a Business and Profession¬
al
Women's
tended to include first processors
meeting—and
the grow in the soil of economic ig¬
of agricultural, horticultural or sea presiding officer said, "Mrs. Pro¬ norance.
In
making an observation of
products. However, an exemption fessor Smith will speak now about
of 14 weeks a year up to 5 6 hours post-war problems — she's very this scope the question naturally
of work a week is provided in hopeful and promises not to men¬ arises, what shall we do about itf
these
classifications
to
permit tion any of the dreadful things And the answer I give—and with
humility because of the impor¬
longer working hours and the hir¬ going on."
Now I am very hopeful—but tance of the question itself—is
ing of part-time transient work¬
ers in harvest seasons.
though some dreadful things are that we need, all of us who want;
4. Extension of coverage of all going on the best hope for the to live and work in a free eco¬
workers in industries affecting in¬ future lies in telling ourselves the nomy,
to explain^ what a free
terstate commerce,: Previously the truth about our economic system economy is—to combat economic
law covered only workers directly and in trying to understand how
ignorance with the economic facts
engaged in or producing for inter¬ it works. It is time to get dow i in the present situation.
There are candles of under¬
state commerce. The Wage-Hour to economic realism.
.

and; the Supreme

Administration

commerce come

the

new

prof

regarded as a clarifica¬
i
;
' 1
establishments hav¬

Vision is
tion.

tered

McCarthy, Dean of the
School of Commerce of the Uni¬
James

within the mean¬

ing of the law and,

standing to be lighted in the clut¬

"Our World to Build"?

Court, however, have held that in¬
dustries
"affecting"
interstate

versity of Notre Dame said in a
magnificent talk, here in New
York several weeks ago, "In the

Of course, Mr. I^rd needs no defense from us.
evidently the American people do—against any re

But

are covered. Previously
all retail establishmCnts were'ex-

main,

f
6. All daily papers with a circu¬
lation of less than 3,000 are ex¬

empt. The lawTprevIously included
all daily .papers.
Increasing the minimum wage
is on the' administration's list of

of cant and nonsense,
the legend over the door of
room is 'economics'

the

House

Labor

U. S. Military Government Contends That German Banks
Cornerstone of German War Industry and That In Order to

Were

Elimi¬
nate This Threat to Peace, the Military Government in U, S. Zone
Has Taken Measures to (1) -Denazify Existing Banks and (2) to
Decentralize the Banking System by Creating Independent Distinct
Central Banks,With Reserve and Otker Regulations as Applied in
U. S. Says Plan is Not Final Step in Relation to German Financial

recent White House

have achieved

^literacy. But there is
with

cluttered

room

false

brooding negatives

concepts and
room

and
this

An address

before

by Mr. Miilians*
Anniversary of

Professional

Business
Inc.,

Women,

26, v1948.;;w.-v^;^,v;.;

Jan.

(Continued on page 1138)

Discarded

as.

Lega^ Monetary Unit
Announcement has been

Credit to Be Held

•'

25th

the

the New York League of
and

Conference ci^ Bousing

ittaJe

by Belgium of the official .demise
of the "belga" after almost 20
years of nominal existence as the
A Conference on Bousing Credit legal
denomination of Belgian
la 194^ hds been called by Henry inohetarjK unit,^^ whichhovrreverte;
to the "fr?mc," it was indicated in
P. Irr, Baltimore, President of the

lnHew|forfe

Atomic Bomb Test

Plans Discussed

mature

one

reported

before the Senate has acted.

To World Peace?

and in science we

Committee,

but is not.expected to be

Are German Banks A Threat

they?., . these candles
that need to be
lighted. You will think of a dozeri
are

gime, anygovernment, anyofficial; any political party which
permits any man to stay in public office a day after he has
made any such fortuitous and disgraceful attack on a pnyat$ "must" legislations A bill identical
citizen as this record shows Mr, Bowles to have done.
'.-si sn t8? th® Senate measure ispendte£
in

What

of understanding

of them—rl have selected just one
ofLiteracy there are toexaminewith
you here tonight.
And there* is elo¬
Though my candle power may
quent testimony that our literacy be*
dim, I want to discuss, within"
has been- far-reaching and ih the
the time of this meeting that *

many

ampt.

2d.

that

McCarthy mentioned.

rooms.

ing four or more retail outlets
which together do an annual vol¬
ume
of business of more* than

$500,000

economics

room

Dean

Mansion

5. All retail

price ceilings.''--Henry Ford

Holds That Accumulated Savings, the, Outcome ol Creating ,Cur- i
rency for Things Destroyed or of Nor Hse Is a Constant Threat of

;

by WPB as the maxi¬
number

•

in the public

was

Points Out That the Gravest Danger to Our Traditional
System Is Economic Ignorance.
Contends National
Solvency Rest* Upon a StableDollar and Balanced Budget, and

the "Journal ot Commerce":

Japan. Since fighting liad
stopped in Europe, the War
Production
Board
decided
that

By PAUL M.MILLIANS*

■

Vice-President, Commercial Credit Corporation

Miilians

Mr.

amended;;The following are the
provisions of the bill,, as given by

application to OPA on
July 20 was made while
were
still, at war with

;

Economic

Workers will receive higher wages

"Our

last

.f|| 1

bor; It is estimated that* 6,0C0!,.000

—Chester Bowles.
''

Our "World to Build

proponents of a new minimum
wage law are reported!^ to be op¬
timistic of its passage by the Sen¬
ate afterxits approval on Feb. 14
?by what was said to be an?over¬
whelming majority of the Senate
Committee /on .Education andi La¬

Ford

for

Thursday, February 28, 1946

FINANCIAL CHRONICLE

;meet¬

States Savings

United

League, to

ing, plans were discussed for the
atom bomb-warship tests to be
conducted by the Army and Navy
in the near future, it was reported
from Washington on Feb. 13, by
the' Associated Press, which also

the

and Loan

include managers pf

savings and loan

associations

of
"Wall Street Journal" of Feb.

advices from the Paris Bureau
the

following

14, which also had the
to say:

The belga was a device adopted
co-operative banks- in all
country, it was an¬ to inspire confidence in Belgian
nounced- at Chicago on Feb. 1& money when the country under¬
took in October, 192$ its first
stated:Scheduled* for New York City
monetary; devaluation; following
"1. It
was
learned
that the
System.
April II and 12, the meeting will World War I. Representing five
ground rules for the test are being
Ask anyone what a country needs to prepare for a war.
come at a time when Hbusihg'Ex^ ordinary fracs, it was intended to
Most fixed by the joint chiefs of staff,
probably you will1 get a description of huge airplane factories, with, unanimous, vote 'decisions re¬ pediter1 Wyatt expeetsr his pro¬ disguise' the extent of monetary
depreciation. It emphasized also;
armament plants, railroads and many other ; industrial enterprises.
quired. This was decided upon as gram for stepping upv housing itsindepedence of the French
Few people would mention the- quiet, peaceful, little bank that
th$> best method for^ settling dif¬
'operates on main'street, as one of the important necessities of war ferences among the -three - armed nroductiod fp have .gdtl^ under franc* with which it had been in¬
way,! and when the rules and reg- terchangeable before 1914, but1
-preparation.
services-and for eliminating in ad¬
whose prospects
then as .now
;
It is perhaps somewhat difficulty
vance some of the expected argu¬ Ulatipne for operatiort under-the.
first step, now completed, Was ah
looked less favorable than thosg
to see a threat to peace in a bank.
f revised G, I. Bill of Rights will be;
ments over the results. •
overall denazification of all bank¬

and

parts of the

• •

;

There

are

great

hydraulic

"2;/ General of the Army H. H.
ing agencies; the second step, still:
in process, is complete* decentralL Arnold,,, war-tiftie chief of the
zation of the banking system,
7 Army Air Forces, told a House
:
The first step, " removing alii committee that* the United States
the
murmuring of clerks is a
'must capitalize upon the atomic
peaceful sound.
Yet, this citadel dangerous individuals from bank¬
of peace and quiet is even more ing positions, was successful, de¬ bomb,*; backed; with a 7powerful
spite the early predictions that
air force, 'to preserve the peace of
dangerous to world peace than the
factories themselves. ■ ; It is the banking facilities would be ham¬ the, world.'
pered.
The continued operation
corner stone on which the Ger"The White House meeting was
of the banking facilities during
'man war industry was built and
the denazification was due to the attended by Robert P., Patterson,
operated.
Today in Germany it
energy with which the MG finance
Secretary of War; Secretary Foiis as important to demilitarize the
officers sought replacements,; and
banking structure of the country,
restal; James F, Byrnes, Secretary
the sound judgment they Used in
'as it is to destroy her war-produc¬

gleaming
lathes, no huge vats and Coils. The
clicking of adding machines and
presses,

rows

of Belgian currency.

irr

(

,v ;

Government officials hoped in •
the word "belga" would oust5
the "franc" in common parlance at
home. National banknotes were
:

:: Mr; Irr-

ing

emphasized that financ¬ time

the home; building and:
to- relieve
nation's housing: shortage will
of

home owning program
the

the sav¬
ings and loan institutions, which,
supply credit for between a third

fall to a large degree on;
;

faridf

half of the small homes in

inscribed in belgas as well
All official

as.fr ancs*

exchange: rates

were;

quoted in belgas.
However,;
new
word never 4ook Foot

Belgium or elsewhere.
It

■

now.

the
in

dropped from

ex4-

bearing its
and which have
name: are being withdrawn pro¬
made ; 85 % of the. home loans to.
gressively under terms of yester^
of; State,, and .three, of '.the four rveterans- guaranteed so far. The
ing factories. A destroyed factory
day's decree^^ This aictioh consiituf
*Reprinted from!Weekly Infor¬ members of the joint chiefs of branching out of these institutions
can be rebuilt.
if money can be
tes a minor indication of the Gov
mation Bulletin, No. 23 (Jan. 5,
stafL'-Fleel Admiral -William D. into new'4 fields under the'emer¬
found.
7,
ordinary times,

ehange lists> ^andi notes

prevent "this

money

from

being found, Military Government
in the U. S. Zone, has taken two
steps toward demilitarizing the fi¬
nancial structure of Germany. The

1946) .published by the Director,
Office
of
Military Government;
U. S.. Zone, Reports

tion
.

and Informa¬

Branch, European Theatre, f;

';(Continued

and General of 'the. Army

Dwight Di Eisenhower and

pagel 138);';"2* Admitef (Chester-

imlts^ilify ;

gency nepds-of today h suggested
; it;
by:^some; of Ithe;!topics qn.; their tev defend the> fi:anA
Fleetragehda^7as 1 announced, by • the emerged from the;second World;

Leahy,7th£; Presidents chief df
staff,

ernment's: confidence„

| THE, COMMERCIAL &

.yplume 163Niimher 4468

FINANCIAL CHRONICLE

1135

AIE Convention Plans

.The State

Are Announced ;.

f'-'--"'W£«;'.o.u-v^
.V

The

The steady decline from week to? week in industrial
to a halt last week and leveled off to be even, with

came

production
that of the

Many manufacturers continued to be confronted
problem of raw materials and labor shortages, yet with a
few exceptions, output was at a high point.
Despite this 'showing
in output unemployment compensation claims continued on the up¬
grade, rising slightly the past*
week. It is reported that by the
agement to new wage advances,
end of February
the Lockheed adding that all wages are now to
Aircraft Corporation will trim its be raised to the level established

Institute
of
Banking, educational section of
the American Bankers Associa¬
tion, is planning its first post-war

preceding week.

convention to be held

with the

by recent settlements.
\
Continuing, the editorial states,
"The only brake applied on the,

personnel overhead costs by 10%,

approximately 2,200
workers being released from that
Further re¬
company's payroll.
resulting

ductions

will

"York area it was reported that ef¬
fective on Thursday last 6,000 per
diem workers were to be dis¬

than

twice

powers for an

year

be¬

June, 1946, is not granted,
except upon terms that guarantee
the use of such power with a con¬
sistency that has been conspicu¬
ously absent up to now, we are
beaded for an explosion."
"The explosion," the editorial
stated "will come in one of two
yond

forms—either in

continuance of

end in
■

Six

that

must bo done:
'
■
; 1. Congress must
provide suffi¬
cient price relief to yield profits

high-level operation.
for i price * relief
rpust
be
clearly
defined
and
geared to actual costs of operation

•'

long

wartime controls

are con¬

tinued by enforcing restrictions on
wages as well as prices.
*
h
5. Congress must set an early
date for the termination of all
wartime controls and provide for

progressive and bold steps for de¬
control, to

date,

be taken

as soon as

before

that

production levels

In any field are sufficiently
to. restrain runaway prices.
:

high

lay to marshal fiscal and. mone¬
tary policies to combat inflation,

,in order that price controls

may
be discarded, at the earliest possi¬
.

•

abolishing

controls,

earlier

C. Way, Trust Officer of the Cen¬

understand, except that the Left-:
ists. have made it that way.
The
Bov/les aides joined in the propa¬

ganda, which

his

press

city has

The
STe

seen

long time.

tp
the effect that either
Bowles had: his way or he would
resign and this meant, according
to

the

accompanying propaganda,

that the country would then go to
hell.
Then came the stories from

par¬

ticular

of the most'

was

supported this
that

was one

Intensive pur • propaganda-ridden,

particular bill
M

period of weeks, Snyder,

steel, though just why that should
be a libel of a man, is difficult to

to whether he

Ohio, who is immediate past Pres^
ident of the Institute, has been
appointed Chairman of the De¬
partment Conference Committee
which is now active in securing

in the propaganda picture, was
; labelled as a friend of industry, of
I

conierences as

Cleveland,

—

of Washington than Snyder

b i 11.

ordinary

Chester's aides, peddled by them

Carlisle Bargeroa

n a t o r,

and

mbodyplsp;; but which Wash¬
Which Mr. Truman had been, ington newspapermen accepted,
usually fayors all appropriations some of them innocently and now
and is against all'taxes. This was! apologizing about it, and others
Mr. Truman's attitude.

He wanted .purposefully, that there would *be

an extension of social security, he
WPbted the FEPC bill, he wanted
a

Federal

ance,

which

a bulge in the price
line, what¬
ever that
means, but that Bowles
would supersede the "inept'?;Snyr
der aS-^ the big shot^^^stabiliza^:

setup of health insur¬
wanted " anything else
particular^

vociferous

That was when Harry Truman
happened to be
demanding at the time.; Mr. ,Tru- showed his: stubbornness,; He re¬
map
.thought he could satisfy shuffled some agencies, he agreed
everybody, because there was a with Snyder that the pn-called
tremendous pent-up demand for price line had to be flexible, anci
goods; in the country, ahd ji^^looked; he went out Of his way at not one
like- the country:^was headed
;for|but two press conferences to point
prosperity., He was told by "his1 out that Bowles and his office,
meeting of the advisers,^'hamely;Hob
Hahhegamtwhateversth^fen

strictions, and a

.pressure

group

can

business* afford to ac¬

Executive

Council

was

held

stead under; an emergency

; 6.. It must proceed without de¬

ble data,

pressed.

him

—1•

took. ;
Over

departmental

National; Bank,

last

streamlined, or the delays that
characterized past administration
v

| ganda

:c .But ■ being
just a former
the.
Senator of one

and Institute conferences. William
tral

that

at the earliest possible date.
3. OPA
administrative
proce¬
dures must be speeded ,up and

Congress must see that, once
established, the new line is held as

•

get

im¬

ers;

think

basis

This

establishment

who

normal to

will become intolerable;.

every

observers

in-* who thinks in terms of
organized I agencies turned out to be, Would
provi¬ voting blocs, that this was the. still be in
SnyderV office^ • The
cept the program the Administrision of the Institute's constitution. thing to do in order to hold this Bowles
people, in the absence ,of
tion now proposes.
■
All restrictions fox attendance will: bloc vote or that bloc .vote* We've his.
getting indignant and., resign4 "Thewage^m^
not be removed for the first post-war got to have a program,
Hannegan * ing, are still insisting that he has
hold the inflation line so. long as convention; which will be held In
kept telling him, things we can displaced Snyder.
,Ask. Truman
the Administration is leading the
June ol.this year. ;
V •' V"
point to with pride to this or that privately and see.
/
assault to breach that line" on the
William A. Heckman, President bloc in ther coming 'campaigns,
The episode means two things:
wage* side* as- it has. done -ever
of the Western Bank & Trust Co^ "Whereupon, Mr. Truman sent up One that Harry Truman intends
since V-J Day."
of Cincinnati, Ohio, is Genera}'. ;to Congress one of the most amaz¬ to be firmer in the future; sec¬
Steel Industry—Difficulties -in* Chairman of the local
convention ing hodge-podge programs,'; having ondly, that aside from his own
vol ved in returning struck steel
relating fa ow ability to pay* predehctidns, hehas comoto;feair
committee, representing: Cinein?;
plants to operation, coupled with nati Chapter. He is assisted by a dhat
Congres^ has ever be^cdh^ ize that the way to cure all of fhe
uncertainty as to price advances General Vice-Chairman, Louis R. fronted with.
When he did this, country's, ills, and. d'ssmate the
for specific steel products, kept
Mr. Truman thought there was no blocs
Sabo, of the Cincinnati branch pf
andfismsi; the Leftists and
both operating and' sales depart¬
the
Federal
Reserve. Bank
of reason why he should not proceed radical Tabor leaders, is to give
ments of the steel industry, in con¬
to have a good timq and enjoy the the
Cleveland, who is President of
country old-fashioned pros¬
fusion last week, according to the
Cincinnati Chapter, and Arthur prerogatives of the Presidential perity.
Incidentally,
his
con¬
"Iron Age," national metal-work^
B. Snyder, of the First National office, which means that anytime servative friends are telling him
ing: paper*Litt}e finished steel Raftk; of: Cincinnati, Vice • Presi¬ you want to go anywhere^ or if that that is the best way .to be re¬
wa&^ produeedVin^earlypart of dent of
Cincinnati Chapter. 'The there is anything you want to do, elected, not through trying to keep
the week as mills, awaited; coke
Gibson Hotel has been selected as heaven and earth will be turned the'country in a crisis state and
oven gas necessary for operation
Mr, .Truman was I manipulating this bloc, racial or
convention headquarters.
- To'arrange it.
of soaking pits and accessory heat¬
thinking in these* simple.'terms J economic, against the other. This
ing equipment,
/
■
• ■
' ' ■
when the CIO moved in and began , means that Bob Har^egan. with
No steel deliveries of conse¬ Congress Moves to End
conducting
mass
industry : and -his expert, ward-heeling political
quence were expected" to be made
pressure strikes.
Reluctantly he advice,: seems to be in the dogBan$ on Public Works
had to deal with the situation and house, which' it is our very def¬
until; theannouueenieht^of Rcw
A resolution by the Senate lift¬ damned if it wasn't annoying. inite understanding that he is.
prices, states, the magazine. Steel
companies the past week notified ing restrictions halting expendi¬ With a view to getting oif to Fior-;: Snyder, the milk-toasL :aa the
their customers that the price ad¬ tures, on projects not needed fpr ida or spme other junket; he pro¬
Leftists describe .him. has moved
vance was effective. Feb. 15.
Un¬ war purposes was passed: byr the posed several off-the-hip rem- in closer to. the driver's feat. And
til the various adjustments are House on Feb. .8, and sent to Presi¬ ?edies, and they all turned sour.
the reason, apparently, is that ho
made, on many steel; products, to dent Truman. - It would permit
In the course of these things, has a clear and si*nrlft
and
appropriations for- a $500,000,000 and it
arrivqht a^evcrage^increase pried
is a commentary on Mr* Truman;can understand that,.. 1
of $3 a ton, steel ^hipped, will be rivers and harbors program that
Truman's steadfastness when put
billed at the old price. When the was authorized in March 1945, ac¬
"up against iL- the Leftists weri US &
Turkey
Air P»cl
new
quotations have been an¬ cording torAssociated Press Wash¬
trying to make a hero out of Ches¬
The United States
Turkey
nounced, an additional billing will ington advices, which said:
ter Bowles and were seeking to
be made to the customer for mar
The "resolution make the public destroy^ John W, Snyder on the signed a "fifth freedom" air trans¬
.terial shipped, after Feb. 15 for works' eligible for appropriations
port agreement in Ankara Feb. 2,
question of - whether the "price the State; Department
any difference between the old without waiting for the President,
line," whateveT that is, should ;be
and new price.,, v
oh Feb.: 15, according- t«v TJ^it^d
,
.
,
;;j- " or Congress, to declare official held.
The issue, as popularized
The steel industry and ihe OPA Cessation of the war.", Approval of in this country, is whether you Press advices from "Wa^ivngtom in
have .until March 1 to ; allocate .thk"»measure* by - the - President .want inflation .or don't want it* the New York "Herald Tribune'"
$4.50 of the $5 a ton price increase would mean that funds for the Everybody
on
that proposition which added:
among various steel products and projects could be allotted by Con¬ votes no.
Bowles was being pieIt provides that sn Amer-can
until March 8 to allocate Ihe balr gress,' although this year's regular
tpred by the influences behind air line, Pan American Airways,
ance.
While it may not take that appropriation!' for waterways al¬ him as the
champion, of .the great
longbefore prices are annouhced ready; has ; bceh ipassed -by the majority who voted "no," Snyder, may ..operate from the United
considerable difficulty may be en¬ House,t and i$ awaiting Senate 'not - a forceful" talker,
wastrying States through Turkey to India.*
countered in arriving at steel price
action.; $£ :ff|
to get over his point that the way
.
,
*
The-company is permuted to $*op
advanced designedtoMleviate the
Projects authorized but not ap¬ to prevent inflation, irrespective
and pick up international traffic
hardships of the small non-inter propriated' for in the 1945 act are of some .temporary rising prices,
grated steel miUs,< the "Iron Age* m all:parts of the country. Amons was to stimulate production. This at Istanbul and Ankara,
points ; out. v Paradoxically;.- the the .projects and the, estimated
Turkish air lines.; will receive
|has been the attitude of the maproducts on. which many of the first costs are the Great Lakes to
reciprocal rights on a .route
larger steel companies are losing .Hudson River Waterway, N. Y., jority members of Ctm gressl': ..
We Myr tmft: fead. a^majo take through the United States which
money are the semi-finished steels
neither

collapse and depression."
things, the article urges,

2. The

tq n^t

clearly* under¬
the incentives upon which

immediately

only

can

The ratio

ford to risk disastrous inflation by

industrial strife, or in a rocketing

Inflationary boom

production at high level depends* the services of capable conference
"Under
these
circumstances, leaders.
there Is a growing demand on the
.When it was originally
planned
part of business groups that price
controls be rescinded immediate¬ to. hold. the convention in 1946,
the dates were scheduled from
ly. It is argued that, once the re¬
strictive influence of price con¬ June 11 to 14. " Present plans call
trols is relaxed,- capacity produc¬ for the convention to open Morition soon will supply sufficient day, June 10, and close the after¬
goods to prevent undue price in¬ noon of Thursday;: June 13. ? The
last regular convention of the In¬
flation.
V
'
'
!
stitute was held in New Orleans,
"Our situation is definitely more
La., in 1942.
In June, 1943, the
threatening than it was in 1919,
A, I. B. held a war-time; confer¬
after the fifs't World War, If we
ence, in .Chicago, III., with
a re¬
discard all controls now, as we did
stricted attendance, and a simi¬
then, prices might : easily';go ujp
lar meeting .in SL Louis,- Mo., in.
from 23 to 50% in a year's timet
Jupe, 1944. InI945 thq convention
"But if the Nation cannot afwas omitted because of travel re¬

wartime

additional

high.

average.

mines

President's

its

profits after taxes will be
one-fourth. lowdr than the 193(j-

Wage-Price Policy Won't Work,"
appearing in all McGraw-Hill
publications said in part:
"Unless Congress acts to see that
the Administration request for a
of

larger in dollar terms
the 1396-39 period, al¬

worth of

and

extension

though 194$ manufacturing sales
are
expected to be«more than

broad

groups

Washington

taxes

charged from the New York Naval
Shipyard in Brooklyn, followed by
approximately
1,500 others by
April 1st.
»
■ •
' / * Since President
Truman
an¬
nounced his new wage-price poli¬
cy much sentiment is crystallizing
in opposition to it. Expressing his
views on this question, James H.
McGraw, Jr., in an editorial for
"The

study

free

enterprise

convention, representatives
of the various A L B. chapters
and

many

people

and'"let.

Institute,

At the

basis
advances

price

that

pected to level off at 25,000 pro¬
duction
workers.
In
the
New

entitled

The

convention will be the 43rd

annual.' meeting of the

are

BARGERON

Valentine's Day was the turning point in Mr. Truman's Presidential
career, or more important, in the country's career.
To understand
th^ Situation; it inust be understood that Mr* Truman is nov a ?'big"
man, whatever that means; he has never claimed to be one.
It was
his earlier inclination to take the controls off of the American

Cashier of the First Na¬

Bank, Boston, Mass.

There

CARLISLE

portant, banking center of
relief, wage
United States and its territories
State
an d
beyohd the established will discuss the Institute's post¬
thinking in
war educational program. Empha¬
pattern.
' •».'
' •
the terms of a
"The price adjustments granted: sis
|rr this program is being placed
by OPA on average " the. editorial on plans to aid veterans, post-war Senator, the
observes, "will yield profits-after education for bankers, and re- Leftist report¬

for

summer, it - is understood, when
the company's payroll may be ex¬

March

side lies in a directive to the

wage

June

at Cincin¬

Board, not to approve, as a

mid¬

until

sistant
tional

Washington
Ahead of the N

nati, Ohio;; June 10-13 inclusive,
it was aannounced on Feb; 11
by
David T. Scott; national President
of the Institute, who is also As¬

From

American

y"The long-awaited wage
price policy," the editorial

and
de¬
clares, "offers little promise of
such solution, and this may well
constitute a national calamity.

Sign

■

•

"The Administration has justi¬
fied its policy of promoting wage
»

increases

measure

necessary

to forestall deflation—to

keep purChasing power from falling and
forcing the economy into a violent
tailspin. The strict holding-of-theline on price,, Ceilings has been de¬
fended as necessary to prevent
runaway inflation."
! '
'
editorial points out how¬
that the President's program
for dealing with inflation pro¬
motes the very danger which Mr,
Truman is urging everyone else to
The

ever,

combat and notes that it would
have been sensible, for the- new
wage policy to- reverse the former

practice of lending active encourr

■

f $1,010,000, and Jones Inlet, N. Y.,

•

(Continued op. page 1142)

|$I,800,000.

•

r;:

„

lacking. in( thf pfapa-

f vyill bp determined at aLder datei

Miners Ask Same

The Financial Situation
j-.V.M'1

.,,>!•

<"•&,

-j

i'W" /

'Vi •

r--S •^

•'

• •

Washington much Mr. Bowles,

certain

less

he
1

that
"
'

can

take

their functions.

over

far as can be
learned, Mr. Bowles has no
intention of taking time for
sober thought, or if he had
the time would not engage in
so

The fact of the matter is,

United States are not to
called

In that Mr. Bowles

sue

notions.

What

Mr.

to pay through Bowles and. the others fail ut¬
for" the futile at¬ terly to understand is that

Mr. Bowles and

tempts

this

belief

that

week, at the

same

now

pay

re¬

concluding session on
Feb. 16 of the wage-scale conven¬
District

tion

Workers

wayfaring man even though a ply that no force which any
fool.
It requires that mem¬ government can bring to bear
put
natural laws in
bers of Congress, and the can
shackles
and
keep t h e m
great rank and file of the peo¬
ple, be placed in possession there; that no lasting success
of facts which they may not can possibly attend the ef¬
have at hand and reminded of forts of the would-be con¬
developments which they trollers in Washington to neu¬
tralize the inflationary fac¬
may have overlooked.
tors in a

Also approved were resolutions
more vacation pay. and for a

for

renewal

demand

the

for

the UMWA benefit fund.
Fear.of rapid mechanization

mines drew resolutions that each

unit

mine

number'

consist

workers.

specified
Delegates

situation character¬

that, otherwise, many
employed would lose
their jobs.
workers

now

The convention also

urged that

the probldrn of seniority be "iron¬
out." x Veterans,
they held,
should receive credit for time in

the

armed

should

not

services,

they

but

opposed to its establishment were given an opportunity to advance
Edward Macauley, Acting Chairman of the Maritime

its weaknesses.

Commission,

the Associated
its

fifty, resolutions on mine
safety precautions were offered.
one

proposal, that of ex¬

j udgmerit of the situation by all, is it conceivable that large

authorities.

Washington

increases in wages

and:'bth|r

p| making thq .gqofq|^i[
ticians suddenly to find where performing the ^servicesmm
they went Wrong in the past and women crave can proceed
and to parade their mistakes with but little let or hin¬
seems

to be a trick

of the poli¬ costs;

public as a reason
keeping them in power.

the

Administrator

finds the

chief

dangers of "inflation"
in the psychological state of
the rank and file — and, of
course, inevitably in the un¬
pleasant / ' 'designs" of; the
"speculators," " gamble r s "
and the rest.
a

good

All this makes

"thriller"

for |the

children's bedtime hour
"thrillers"

are

ever

—

good for

such a purpose — but not
much else can be said for it.

He would have

believe that

the trouble is found in wide¬

spread belief that the "line"
"held," and that

will not be

enable nearly all of the
the New England and
Middle Atlantic States to receive

thoughtful people
suspect is that
they had underestimated the
ability of Mr. Bowles and his

have begun to

Mr.

also had not

trouble, i But the real

difficulty was in
price regulations which made
it all but impossible for em¬
ployers to reach any sort of
understanding with their men

ered within

"Even if all of this traffic rep¬
a direct diversion: from
the railroads, the total ton miles
resented

radihs of 300 miles

accounts

The Press

part:

lost to

l3t3i

dle.;"^;

kilowatt

each

•

Vfl

hour

available from the St. Law¬

than

favorable rate," he said,
"would enable rural users in New
a

possible

heard

strictive

outworn theories of re¬

economics".

Goodland also
would

accrue

produce and distribute the

Governor

which would be
said that benefits product of the seaway.
power

to agriculture through

On Feb. 20, the estimate

and others were

of Army

and power project was placed be-i
fore the Senate sub-committee by

basis

any

is threat¬
spread, of to¬
added, j

"Today that liberty
ened bythe steady
talitarian ideas," he

Mr. Bowles to obtain

Congress.

were

support
Perhaps rtiany

little too

certain of

the end at June 30 of this year
of the laws which made these
foolish

regulations possible.
J But in the long run, there

electric
a by¬

Opposing views by Senator Mead
voiced during the
week to Feb. 25. For full text of
Mr.
Mead's statement see first

construction of the project.

Re«?

based

"fy

engineers as to the total cost to
the United States of the seaway

The

letter from fonher Presi"-

ing that it would not harm Amer¬
ica's existing transportation sys¬
; A statement from Gov. Walter tem or ports, the former President
S. Goodland of Wisconsin, which at whose instance the late Presi¬
was
read to the committee' by dent Coolidge created the St Law¬
Irwin L, Lenroot, former Republi¬ rence Waterway Commission- in
can Senator from that State, de¬
1924, asserted however, that he
clared that opposition to the sea¬ still did not believe the Federal
way was "shortsighted, selfish and Government should undertake to
fied farms

Republican
elected President in 1948, he
a

reiterated his long-time support of
the St. Lawrence project. Assert¬

service to thousands of unelectri-

predicted, "he would have
publican Senate "

ttent Hoover in which Mr. Hoover

extend

•

the final day of the first
week's hearings, the committee

also make it

economically

before,"

ever

and neighboring States to
enjoy the maximum benefits from

Press advices from Kansas City,

phase ot the

^llace.^ai^

"Development of cheap power
has always brought a correlative
development of the area ; which
enjoys its benefits. Power is the
heart: of American industry.
It
is clearly more important now

rence.

service and

power

project, Secretary

energy could be purchased
"without additional cost" if power

"Such

said, have indicated sub¬

to the

now

much

savings in transportation
charges would result iron* opera¬
tion of the waterway.

Wickard said "over four times" as

.•

veys, he
stantial

purchased by the seven REA co¬
operatives in < New ; York' State,

were

ex¬

All Commerce Department sur¬

section" in which complete rural
electrification .would mean more

For

not

tw<»
cent of the total ton. miles

per

roads would

they would be called upon to han¬

said there is "no

Mr. Wickard

the

ceed, at the maximum, one

added

sound

accordingly the remedy is to
which would leave any rea¬
can be no doubt that natural
sought in doing - those
sonable possibility of profit¬
forces will move on over Mr.
things which will convince
Certain ob¬ Bowles and all the rest like a
the public that the Govern¬ able operations.
ment in Washington means servers are now beginning to steam-roller over an old rubbusiness when it says;>as does wonder if they had not like-iber shoe.: ' .; .
be

this nation, Mr. Wallace declared:

the

will not exceed 3.1 mills per KWH.
Present:« wholesale
charges, he

electric

given quite the
they should have to
wise underrated the abilify of
the ability of; the unions to
cause

estimated,

Press

continued, that
cost of St.: Lawrence power deliv¬

ican

attention

root of the

Wickard

York

Republican
program, Senator Taft declared in
his address, must be designed to
maintain the "liberty of States and
associates to frustrate and de¬
localities to irule themselves with¬
lay the appearance of a flour¬ out orders from Washington."

ishing peacetime economy in
this country,
They probably

Estimating, on the basis of 1941
studies, that new traffic gener¬
ated by development of the sea¬
way will total 10,000,000 tons for

rates which will permit complete
utilization of electric energy."

Republican party to power
is the only way to achieve "Amer¬

was

Mr. Bowles?

Lawrence

tion and trade.

the benefits of electric service at

di¬

St.

adequately,
Secretary
said, it is necessary -to
consider it in the light of possible
national developments in produc¬

should

farms

of the

the

evaluate

Wallace

policies of the CIO Political

might lose four."

What

"Low cost power resulting from
the
completion .of the project

administration was dominated by

drance without

How Dangerous

phase of the lopg-sought inter¬

ests of the Northeast.".!

today,
Mr. Bowles makes much of ed additions to the cost of fill¬ the Senator told
reporters: "It is
the symptoms of a speculative ing the markets with goods unlikely that we will get a ma¬
jority in the Senate. I see electing
fever which he finds on all people want.
13 as remotely possible and we
sides at the

present moment.
One gets the impression that

approving the sea¬
From the press accounts we
quote:

to the agricultural economy "than
to the diversified farming inter¬

corresponding Mo., reporting this added:
In a speech prepared for deliv¬
increase in the prices which
for
must
In the hands of a skillful consumers
pay.
Not ery before a Lincoln Day banquet
here, only a few miles from the
strategist or tactician, it often even the "subsidies," prolon¬ President's home at Independence,
"works'* —* to the dismay of gation of which is how de¬ Mr. Taft said, "Today begins the
the
more
straightforward manded, can long conceal the campaign to elect a Republican
claimants for public confi¬ price advances which must of Congress in 1946 and a G.O.P.
President in 1948."
dence.
necessity follow upon repeat¬
In an interview earlier

before the

in¬

project

Sees Administrating

principles of freedom and
government."
Associated

seaway

50% it would

voice to those

national development, asserted:

"derived

way.

dealing particularly with the pow¬
er

much

economically justified,"
Henry A, Wallace, Secretary of
Commerce, on Feb. 21 added his

Electrification Administrator who,

mills.

rectly from Marx, via Moscow,"
Senator Robert A. Taft of Ohio on
Feb. 12 declared that■ the return

the cost of the

still be

give full approval to the project,
according to the Associated Press,
was
Claude
R.
Wickard, Rural

^aid; rangefrom^;10.7 thUls to

Committee,

"If

fore the committee on Feb. 19 to

Action

gineers who assisted in the compil¬
ing of the original cost estimates
the seaway, told the committee:

creased

four years to

the

Brig.-Gen. T.M.Robins, retired,
former deputy chief of Army En¬

Another witness who went be¬

■

Banking and Cur¬ further to; that supply, and
rency had much to say about the various other associated
what he terms the earlier mis- factors now existing. Least of

reaui-

navigation and power, $118,711,000'.

tending the tenure of officers from

six years during the
term, threatened to disrupt
the five-day meeting. The sugges¬
tion was dropped in the face of
strong opposition.

Agriculture, citing multiple bene¬
fits to the farmer, asserted the de¬
velopment would - also "increase
our
nation's economic stability
and security."

incredible additions Ren by CI0-PAC
y i Mr. Bowles in , his long to money .supply,< a continua¬
In a speech in which he as¬
statement to the House Com¬ tion of policies whichi add still serted that President* Truman's
on

Press reported

seaway

Works solely for navigation,
$41964,000; works primarily for pow¬
er, $98,684,000; works common to

of the nation",

dispatch, adding
that on the same day Charles F.
Brannan, Assistant Secretary of

Wrong Then; Ergo Right Now ized : by

mittee

Feb. 19 told the Senators that the

Washington

Associated

About

site to the "realization;of the full^
maritime potentials

replace workers with

greater seniority.

Only

Proponents of the St. Lawrence seaway and power project re¬
cently appeared before a Senate Forpign Relations subcommittee to
give expression to all conceivable arguments in its favor before those

royalty of 10 cents for every ton
of coal mined. The royalty would
be paid by the coal operators into

Hearings on Proposed
Seaway

SI. Lawrence

isJtejSC

neither the charged

mihd to "line" nor the "bulge" can be
make men behave as they permanently held has little or
to • do with what
have never before behaved. nothing
This, of course, entails rebut¬ Washington is doing to pre¬
vent inflation or plans to do
ting arguments and contro¬
verting assertions, the weak¬ for the purpose, What these
ness and the folly of which markets and other indications
really should be plain to the are (or were) saying is sim¬
of the same

others

>.,u'

35-hour, 5 day

upon

nose

ft.'* *>.

5, United Mine
of :"America, at Pitts¬
burgh, according to special advices
neither Mr. Bowles nor any from that city to the New York
"Times," which also had the fol¬
one else in or out of Washing¬
lowing to say:
'
ton can very long resist the
The delegates stressed repeat¬
forces which are today nudg¬
edly that they would support John
ing
us
toward " what Mr. L. Lewis, "no matter what his de¬
Bowles and the others term mand will be."
.'/

informed per¬
quite convinced that

of course, that

sons are

inflation.

A demand for

featured the

pastime, and since he
is quite right. He is also prob¬
by profession is an adept at
influencing men's minds, it is ably on strong ground when
he points to various specula¬
necessary to combat his in¬
fluence in and out of Con¬ tive or semi-speculative mar¬
kets as reflecting precisely
gress if the people of the
such

Senafe Suhcommittee

Pay

ceived for 48 hours and six days,

Irresistible

But,

...

there jvill.be no

do inflation.

other;man„has ever
succeeded in doing during the
centuries of recorded history
<—seal off natural forces and
what

Thursday, February 28r1946

For 35 Hrs. at for 481

yf'j• • V.j£ i,; •/'

,** -"'.'V '•

'•

(Continued from first page)
return

the

FINANCIAL CHRONICLE

THE COMMERCIAL &

1136

page.
»-i

" L v v*

l"\

*' V

5.-if.- '"

Senate Passes Supply Bill
chief
of the Army Engineers Corps. The :
A Federal agencies supply; bill
figure as revised to $342,016,000 of more than • $5,000,000,000; W^ts
was roughly $57,000,000 more than
passed by the Senate on Fed; 18
the engineers' 1941 estimate, the aridreturned to the; House
;fdr
Associated: press pointed out and consideration of Senate changes.
Gen.

Lieut.

R. A. Wheeler,

added:

General Wheeler, said that the
total cost to Canada will be $277,-

west wing to

appropriation for adding a
the White House,' as
by the President was
484,000, of which $132,672,000 has omitted from the bill, but allow¬
been expended to date.
Of the ance was made, according to the
United States total $31,742,000 has Associated Press in its Washington
already been spent. The combined advices, for • $870,000 in White
total cost of the entire project to House improvements, and a $5,both

countries is $619,500,000.

Gen.

000,000 emergency fund was voted;
these two items had been rejected

Wheeler gave this break¬

of the total United

down
cost:

requested

States

Great Lakes Section—New lock
at Sault Ste.

channels,

Marie with approach

$14,637,000;

channels,. $66,029,000.
St.

Lawrence

Island

section,

connecting
>

lid

the

Press

House.

River—Thousand

$991,000..

Administration to pro¬
'"hospitalization,
disability
compensation and other payments
for
world
war
veterans.
The
measure
also includes funds for
Veterans

„

/International Rapids Section —

"The largest item in the bill Is
more
than $4,000,000,000 for the
vide

Associated

The

also reported:

highways."

Volume 163

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4468

duction, and* purchasing power;
(3) a review, of the.economic pro¬
gram* of the Federal Government

Substitute "Full

Employment Bill'' Signed
By President—Text

and*

tions4

nomic policies to foster and promote free competitive
enter-

prise, to avoid {economic, fluctu-,
] ations or to diminish the effects

economic condi-

affecting ..employments in4he

thereof, and to maintain em^
pioyment, production, and pur¬
chasing power;
;
■
*
(5) to make and furnish such
studies, reports:/ thereon, and

•

compromise for the United States or any considerable
administration-sought "full employment" legislation was signed by portion thereof during tne pre¬
President Truman on Feb. 20.
In a formal statement in which he ceding year and of their effect
The

long-deba'ted employment bill which1 is

review of

said that the

measure

for, the President

not all that he had hoped

was

"the

continuing /policy

and; re-

/ /sponsibility; of the . Federal Gov*
ernment ^ V/ . to coordinate; and

utilize all its plans, functions and
resources for the purpose of creat¬

ing and maintaining
-

•

tions

under

afforded

which

there

condi-

will

useful

employment op¬
portunities,
including /.,; self-em¬
ployment, for those able, willing
and seeking to work
The
Congress by this declaration has
accepted a great responsibility.
2. The Congress has placed on

the President the duty of formu¬

employment,

the objective of The Employment

production,
(4) a
program" for carrying out? the* pol¬
icy declared in section 2, together

Act of 1946."

with

summarized the major provisions of-thejbill as foliowsi
r :L
The act declares that it / is-?;; /.'v/v' :■
'1,1

In concluding his
President
had the
v

p o n

and purchasing power; and

statement the
following

according to special advices
"Herald Tribune"
from its Washington bureau:.
;
"I am happy that the Senate
adopted
this legislation unani¬
mously, the House of Representa¬
tives by a large majority. The re¬
sult is not all I had hoped for, but
congratulate members of both
houses and their / leaders - upon
their
constructive
and
fruitful
I

recommendations

legislation as he may deem
sary or desirable.

say,

to the New York

such

(b) The President

may

supplementary

or re¬

he may

deem necessary or desirable to
achieve the policy declared in sec¬
tion 2; ^
^

December of each year.

(e)

;

seven

members of the Senate and

members of the House. This

•

<*.

It was added/that the members;
be

appointed with Senate ap¬

committee is

given an assignment proval, will be paid $15,000 a year,
and the highest the same as Cabinet members,
-'importance; ;,\Y""•
: ■ / ■-V r : -V'" ^
y The following is the full text of
establishes: Irf- the the/
-Employment: Act
^46-fi/af
of

great

scope

executive office of the President

■

?
'

Council

Economic

Advisers,
Composed of three members to be
be appointed by the ' President
with

The

the

consent

the

Council will be

new

Senate.

To declare

im¬

portant addition to the facilities
available for preparing economic
policies and programs.
In carry-

yJng^on&tbte';- work,-; I expect. the
fullest

cooperation between the
Council, the Cabinet, and the sev¬
of the executive
f office.
#
i, At the outset of his statement
eral* divisions

signed by; President Truman
Feb. 20:
'I/*.
' .v.- * h

!' "I

have

employment, production, and pur¬
power,

and for other pur¬

poses.

Be it enacted by the Senate and
Hcnse

Representatives of the

United States of America in Con¬

assembled,

gress

civil-service

Classification

the

1946".

This

Act

may

"Employment Act of
.'
**

laws

Act

Classification;/ Act

amended.

problems of mass unemployment
'and ruinous depression.

essential considerations of national

three

after the
first World War we experienced
farm foreclosures, business fail¬
ures and mass unemployment.
In
fact* the history of the jasti sev¬
eral decades has been one of spec¬
years

ulative booms alternating with
; deep depression. The people have
'found ^themselves defenseless jn

f the face of economic forces beyond
/.their {control. * •

Declaration of Policy
Sec. 2.

The Congress hereby

Government to

ticable

means

and

needs

use

consistent

obligations

de¬

all prac¬

with

and

its

other

policy, with the assistance and
cooperation of industry, agricul¬
ture, labor, and State and local
governments, - to coordinate and
utilize all its plans, functions, and
resources for the purpose of
creat¬
ing and maintaining, in a manner
calculated to foster and" promote
free competitive enterprise and
the1 general' welfare,: conditions

there is an abundance of employ¬
opportunity for those who
are
able, willing and seeking to
ment

work.
>

fit is not the Governibent's duty

expense

{

Sec. 3.

transmit

The President shall

(a)
to

enable the Council to
exercise it powers, functions, and

the Congress within
sixty days after the beginning of
each regular session (commencing
with the year

duties / under this

ceed

chance to

suc-

by their oton efforts. That is

Act, there

are

appropriated (ex¬
cept for the salaries/ of; the mem*?
and the

bers

salaries

kn4: Employees
such

faintest idea of the standards pre¬

vailing in well-run agencies."
Most of Mr. Taft's address was *
devoted / to a discussion of the
economics of employment,
warned

against placing

and he
faith in

essary investment, complete Gov¬
ernment control of business, and

vilification

the

profit

motive

and those Who believe in it.

officers

| Jan. Cotton Consumption

sums

the Council)
may be necessary.
of

nomic

Report") setting forth

(1)

(1) to make

declared

;

submit'to the President studies

relating to such developments
and trends.

(3)

appraise the

nrograms

and

;

various
activities-of the

Federal Government in the light
of the policy declared in section
2 for the purpose of determining

;

the

extent

which

such

pro¬

and activities are contributing,
and the extent / to
which they are not contributing
grams

I to. the achievement of such pol•, icy,
and to make recorrimendations to/the; President? With'recarry out
section 2; //.•spectcthereto:- •".? ,.>t •* ^

(2) current and foreseeable trend
in .the levels
employment, pro¬

■"

concern¬

tion, /and purchasing power ob¬
taining in the United States and
needed

(3)

and

as a

•

■

(4) to develop and recommend
the President national/ecQr

and

and 2,292,765 bales of lint
289,947 bales of linters on

Jan.

31, 1945.

1945,

guide to the several
_

hand

public storage and

on Jan. 31, 1946,
9,964,513 bales of lint
48,271 bales of linters, which
compares with 10,504,564 bales of
lint and 44,323 bales of linters on
Dec. 31
and 12,980,186 hales of
at

and

compresses

there

were

and

Congress /lint/and 28,679 hales of linters on
dealing with legislation relating Jan. .31, 1945.
to
the Economic Report, not I
There were 21,629,882 cotton
later than May 1 of each year! spindles, active durhig January,
which compares with 21,551,960
(beginning with the year 1947)
to file a report with the Senate cotton
spindles / active
during
and the House of Representa- December, 1945, and with 22,260,tives containings its findings 842 active cotton spindles during
of

the

and recommendations with re¬

January, 1945.

spect to each of the main rec¬
ommendations
made / by - the

and

continuing stu¬
to the

(2) to study means of co¬
ordinating programs in order to
further the policy of this Act;

?is

prospective, to analyze and
interpret such information in
the light of the policy declared
in section 2 for the purpose of
determining whether such devclopments and trends are in¬
terfering. or are likely to inters
fere, with the achievement of
such policy, and to compile and

dy of matters relating
Economic Report;.

the levels of employment, produc¬

levels

It shall be the function of

(b)

the joint committee—

■

1947); ari economic

the policy

}Qb seeker have

Department

authorized to be

ing economic developments and
•economic trends, both current

conditions in which the individual
individual

be avoided.

may

(f), To

useful employment

such

the

State

pri¬ several prevalent theories—"soak¬
agencies, in order ing the rich," placing all emphasis
duplication of effort and on consumption and none on nec¬

that

thoritative information

report (hereinafter called the "Eco¬

and

the

for

vate research

assist and. advise the
President in the preparation of
the Economic Report:
(2) to gather timely and au¬

ties,

supplant the efforts of private
enterprise to find markets, or of
individuals to find jobs. The peo¬
ple do expect the I Government,
however, to create and maintain
man

"Times" continued:

ment agencies as well as of

(1> to

under which there will be afford¬

business

;

his first talk there in

was

years..
Mr. Taft said that the
Chief Executive and his principal
18

generally, Mr. Taft asserted, "the
people doing the clerical end of
the work there don't have the

committees

;1923/
^

opportuni¬ :
including self-employment,
government
has for those
able, willing* and seek¬
.'the responsibility, to use allits ing to
work, and to promote max¬ :
^resources to ereatev and maintain
imum- " employment,1 production, 1
conditions under which free com¬ and
purchasihg power.
j
./ '
.
petitive enterprise can operate ef¬
fectively—conditions under which Economic Report of the President
"Democratic

paper/

The

the

and

eral

"Within

(as reported in the New York
"Times") and which, said that

culture,/ labor,; consumers, State
and 3 local
governments,
and
other groups, as it deems ad¬
visable;
''
(2) the Council shall, to the
fullest extent possible, utilize
the services, facilities, and in¬
formation. (including statistical
information) of other Govern¬

people. The legislation gives ex¬
pression to a deep-seated desire
for a conscious and positive at¬
tack
upon
the ever-recurring

good administrators in the opinion
of Charles P. Taft, former Direc¬
Economic Af¬
fairs of the State Department. In
his remarks to this effect in New
York at the Town Hall on Feb.
tor of the Wartime

and may consult with such rep¬
of industry, agri¬

1923,
as
amended, and is authorized, sub^
ject to the civil-service laws, to
employ such other officers and
/

icy and responsibility of the Fed¬

;

.
powers^
under this

duties

and

Byrnes

clares that it is the continuing pol¬

■»

Exercising: jts
-

nor President
Truman had shown that they were

resentatives

employees • as may he : necessary
for carrying out its functions un¬
der this Act, and fix their com¬
pensation in accordance with the

;

State

Secretary

•The Census Bureau: at Wash-Z
ington on Feb. 19 ..issued its re- "
For / the salaries of the members port showing cotton consumed in
the United States, cotton on hand,
gnd the salaries of officers and
and active cotton spindles in the Z
employees of the Council, there is
month of January,
V. /
;
authorized to be appropriated not
> In the month of January, 1946,
exceeding • $345,000 in the aggre¬
cotton
consumed
amounted
to
gate for each fiscal year.
to formulate and recommend na811,368 bales of lint and 96,242
^ional economic: policy to promote Joint Committee on the Economic bales of linters, as compared with
employment, production, and. pur¬
Report
651,784 bales' of -lint and 86,303 •
chasing power under free com¬
bales of linters in December and
Sec.
5.
(a)
There is hereby
petitive enterprise; Each member
850,425 bales of lint and 129,296
of the Council shall receive com¬ established a Joint ^Committee; pn
bales of linters in January, 1945.
pensation
; the rajte of $15,000 fhe Economic/Report,, to/be com-s
six"
months ' ending
posed of seven' Members of the ■)/ In ' the
per annum. 5 Ttt§ President shall
Senate, to " be appdinted by the Jam 31. iicottoh .consumption
designate one of the members of
President of the Senate, arid seven 4,407,219 bales of lint and 513,383
the Council as chairman and one
Members of the House of Repre¬ bales of linters, which compares
as
vice chairman, who shall act
with 4,870,811 bales of lint and
sentatives, to be appointed by the
as chairman in the absence of the
Speaker of the House of Repre¬ 748,191 bales of linters in the cor¬
chairman^''.'■
*<■*■:• V/v'
sentatives/ The tErty/ representa¬ responding period a year ago.
(b) The Council is authorized
There were 2,366,336 bales ofA
tion, on the joint committee shall
to employ/and fix the
lint and 328,268 bales of linters on
compensaj
tion of, such specialists and other r^japarly as m&y-^ be feasible rejet tne relative
ees. the relative membership of haiidiq/^consuming: establishments:
of
111
r
" i/ s
experts as may be necessary for
v^lnfn'ajority-'and,:minority parties! on1 Jan.- 31, 1946, which/compares
the carrying out of its function^
W^he Senate and6ouse of Repre- with 2,380,324 bales,-of lint arid
under this Act, without regard to
302,678 bales of linters on Dee. 31,
/sentatives.
the

Short Title
Section

ployment Act of 1946. In enacting
this legislation the Congress and
the President are responding to
an overwhelming
demand of the

■

NeitherJames

chasing

cited

signed today The Em¬

Against
"Soaking Rich"

ACTr.:7/.,,_-.;;; ;

national policy on

| the: President said:

Taft Warns

Act-—;//;.:?:,. Cabinet member did not have
(1) the Council may consti- enough background and training
l tute such advisory committees to
qualify as good administrators.

functions

seven

the

(d) The Council shall make

lating programs designed to ac¬ efforts,
mitted,
"The Employment Act of 1946 is
tinker subsection (b), shall,
complish the purpose of the act.
when.; transmitted to Congress, be
In signing this act, I accept this not the end of the road, but rather
referred to the joint committee
responsibility, which I believe is the beginning. It is a commitment
created by section 5.
in
line
with
the responsibility by the Government to the people
placed on the President by the —a commitment to take any and Council of Economic Advisers to
Constitution. This task is so great all of the measures necessary for a
the President
that I can perform it only with healthy economy, one that pro¬
vides opportunities for those able, | Sec. 4 (a) There is hereby creat¬
the full and Unqualified co-opera¬
ed in the Executive Office of the
tion of all who are sincerely in¬ willing and seeking to work.
We
President a Council of Economic
terested in the general welfare shall all try to honor that com¬
Advisers
(hereinafter called the
inside and outside the Govern¬ mitment."
;;■ *•'''..: ■
/;"Y •
"Council"). The Council shall be
ment.
Making this act work must if: The enactment by Congress of
composed of three members who
become one of the prime objec¬ the compromise Full Employment
shall be appointed by the Presi¬
tives of all of us: .citizens, gen¬ Bill was noted in our issue of
dent, by and with the advice and
erally, industry, labor and agricul¬ Fe^20,vpage 1009;{
:
consent of the Senate, and each of
ture, State and local governments, | ^R^Crring to the tliteei^ah Eco4
whom shall be a person who, as a
nomic Council which the measure
.and the Federal Government.i <.-■
result of his training, experience,
5^3^The Act' Includes; a signifi* would set up, the Associated Press
and attainments, is exceptionally
cant provision that will facilitate accounts Feb. 20 stated that an in¬
formed source said Mr. Truman is qualified to-analyze and interpret
5 co-operation between the execu¬
economic developments; to/ ap¬
tive and the Congress in the for¬ considering for two of these places
mulation of policies and programs Gov. Ellis G. Arnall of Georgia praise programs and;activities of
the Government inthe/ light of the
to accomplish the objectives of the and John G. Winant, former Social
Security Board Chairman and now policy declared in section 2, and

Act;i i It-establishes; a ;joint; eon*'
gressional committee consisting of Ambassador to Rritaim

legislation

and

President may request,"
■

respeci

annual report to the President in

transmit

with

to matters of Federal economic

policy

neces¬

Congress
reports supplementary to the Eco¬
nomic Report, each of which shall
include such

•

1; recommendations

for

from time to time to the

vised recommendations

1137

perts, consultants,

^President in the Economic Re¬
•

port, and from time to time to
make such other reports and
/ recommendations to the Senate
/ and House of Representatives as
it deems advisable,

(c) Vacancies in the member¬
ship; of the joint committee shall
not.affect the power of the re¬
maining members to execute the
functions of the joint committee,
and

shall

manner as

inal

filled

in the

selection.

vice

chairman

members.
....

joint committee is authorized to
utilize the services, information,
facilities

of the departments

and

joint

com¬

ment, and eliso of

from

among

The

hundred words.

25 cents per

and establishments of

chairman and

assist¬

services to report hearings of the
joint committee, or any subcom¬
mittee thereof, shall not exceed

o$g-

The

mittee shall select

technicians, and

and: stenographic

same

the

ants, to procure such printing and
binding, and to make such expen- /
ditures, as it deems necessary and
advisable. The cost of stenographic

of the

case

clerical

;

agencies.

the Govern¬

private/research

;

(e) There is hereby

authorized

to be appropriated for

each fiscal

its

(d) The joint committee, or any year,/the sum of $50,000, or so
much thereof as may be necessary,
l y
authorized
subcommittee
to carry out the provisions of this
thereof, is authorized to hold/such
hearings as: it • /deems advisable, section; to be disbursed: by the
Secretary of the. Senate .on vouch¬
and, within the limitations of its
ers
signed by the chairman or
appropriations, the joint commitvice chairman.
-•
-/-/{//'.' >/;/■/• //■
tee is empowered to appoint and
d

fjx the compensation of such ex-:;

tApproved.Feb. 20. 1946./

•

i'l 0

THE COMMERCIAL & FINANCIAL CHRONICLE

1138

Are German Banks A Threat To World Peace?

Our World to Build
(Continued from page 1134).
appropriately use, the ques-,
tiOii
of
government spending. I
have selected it because whatever

may

rests

about

remarks

few

end—a

of federal
non-productive purposes

expenditure

excess

of current tax income.

Balanced Budget Essential,

And toward the:

Tax income should be the limit¬

•

planned 'and controlled^economy,j
-because this thought is frequently
interwoven
by the classic eco-,
nomist with the question of gov-,
efnment
spending *•— "compen¬
satory economy" some call it.
However, may I first protect
niy remarks by saying that I shall
not be discussing war spending—
the amount of the war debt is the

the

upon

national solvency.

must pull up drastically

funds for
in

achieve as a nation
stable dollar arid

hope to

ture

ing factor; in all government /ex¬
penditures. The master key to the
future of dollar stability is the

familiar-sounding
tood

balanced

but
budget.

misunerWhatever

(Continued from page 1134)
making their selections. ,;v As
result the banks are enjoying

United .States be'eause- industrial

* stock shares are not a completely
stable or liquid investment. Their

increasing. public fconfidence; un¬
der a new and clean management.

value fluctuates from day to day.
If- a bank - buys industrial shares

The second step, breaking the ydth a; depositor's money on one
highly organized, machine-like, day, there is no guarantee that ,It
banking system down into small can sell the shares for the same
functional units, is one of the most amount when the depositor comes
important
steps
yet
taken. to to withdraw his money on the
prevent Germany, from again be¬ next.
coming a warrior nation. .? This ;' Furthermore, the banks in Ger¬
huge banking monopoly was the many actually created money to
instigator as well as the supporter make investments in industry. All
of the huge economic bludgeon banks have the
unique character¬
which enabled Germany to smash istic of being able to lend money
Europe to her knees.
they do not nave. This is because

social
objectives
we
hope
to
achieve, whatever subsidies are
justified, whatever financial >id
we
should give to impoverished
and
defaulting nations of
the
Banks^Build Industry
World—all these depend upon a
price we must again pay in thO'
balanced budget. For the logical j .In Germany, more than in any
bazaar of war for political and
and unavoidable end of a pro¬ Other country,. the money for in¬
eConoiric freedoms. Ratherj, I shall
dustry has been obtained from
be discussing deficit financing as gressively increasing government
Germany does not have
debt is a rotting' currency Which pahks:
an instrument of public policy. I
the traditions of private, invest¬
shall not be discussing controls destroys all savings, all "gains Of
It destroys,' all ment, such as those of the United
that were a necessary part of • personal thrift.
States and Great Britain, Because
oiir war economy. Rather,: I shall meaning of purchasing power—a
Germany's industrialization came
be discussing the philosophy of bigger pay envelope is a fake arid
relatively late competition: from
a delusion unless there is a cor¬
a planned and controlled economy.
other industrial powers left too
'--W 1
yT
^
^
respondingly bigger market bas¬
little time to develop a class of
Government Spending
ket on the kitchen table.
A balanced budget, as we move private investors, or to build up
There is a delusion that war
Capital reserves out of profits. To
has made us prosperous when into the peacetime years, ahead,
get capital in a hurry, industry
actually war deficits added to. a is the one and only key to a
turned to the banks.
decade of peacetime deficits have satisfactory economy of peace. It.
The banks willingly committed
created a debt and credit expan-; is the one way to economic and
themselves heavily in industrial
sion which predisposes to consid¬ social progress. The opposite way
shares. This is forbidden in the
erable trouble as an inflationary of growjng governmennt deficits
force. We find
ourselves as a is the way in which preceding
nation in the uncomfortable posi¬ democracies have gone to their Rome with all of its powers of
Empire down to O. P. A., no plan
tion of having
billions of war destruction.
Proven
patterns of the past for controlling an economy-has
savings that are a threat to the
which history establishes supports Over been durably successful.
,
immediate future value of our
;• Between
Plymouth Rock and
dpllar in terms of purchasing this statement and they have been
too impressive and too regular to the Declaration of Independence
power.
/
■

•

And the reason for this is sig¬
as a prelude to what I

f The billions of war savings aye
savings created -by dollars used
to pay people for producing goods
now destroyed or of no use. They

not

are

dollars

which

represent

true wealth in forms of consumer

goods, property resources, or use¬
ful tools of production.
No goods were produced to be
bought with these savings.- And
>

here is my point: When and if
can

get

into

production, goods
currently will create

produced
their

own
buying power; and
therefore spending of war savings
merely dilutes the buying power

of money currently, earned.

There is an arresting necessity
fpr us to discourage the spending
,

of wartime savings until accumu¬

lated

savings and current earnings
spread over maximum

can

production. If we are to lessen
the threat of wartime savings as
an inflationary
force, goods cur¬
rently produced should be bought

out of the

their

current income which

production creates.
But this explanation of why
war savings constitute an infla¬
tionary threat is not arf attempt
own

to appear scholarly.
It is intended to show how an
of credit—dollars~to

expansion
for

goods destroyed and of
dilutes the value of money.
And whether for purposes of
war,
or in some make-work
project -of
pay

no use

peace, an
expansion of public
credit for unproductive
purposes
has
the salme
effect on dollar
Value. '

Money is merely a catalyst for
of
goods
produced.
Money spent for non-productive

exchange

purposes
competes with money
spent for productive purposes and
dilutes the value of each. Both

assets of their banks Which were/'
in industrial firms. It is

frozen

hot, surprising that ,the two most
prominent bankers in Germany—
Dri SchUcht and Baron von Schro¬
der—were
early
and
generous
supporters of Hitler. Under the r nazi
regime, the

banking system played
pensable

part

indis-

in, financing

posit,

uses

make

it to

cy made it possible to provide the ;!
huge funds needed the rearma¬

payments Reichsbank,

also

provided tech-

nicians to assist in looting the oc¬

simply deposited in another cupied countries, without which
con¬
No cash actually Germany could not have
tinued to fight. Individual German
changes hands. The result is that
banks established or used existing
money, is created out of thiri air.
agents to exploit all Europe, both
are

bank account.

German Banks

Combined

for

The Germans used this system
to great

advantage. Not having a

private profit and for the good
of the nazi regime. "Respectable"'
German bankers, were Used to

reserve
law,
(which preserve nazi assets in Switzer¬
prevent the banks from land and the other neutral coun¬
lending out more than a safe per¬ tries.
Decentralized Banking
centage of their cash) the German

minimum
would

bankers

loaned; out their money

until their reserves fell to 6%

less of the cash
creased

hand. This in¬

their ability to make in¬

dustrial Investments but left j ust

enough cash to meet daily trans¬
actions. This low working margin
caused the banks to be very sensi¬

•

All this is

the

leaders

now

well known by

Military Govern¬

ment. The first two steps will pre¬
vent it from

happening again. The

denazification of the banking sys¬
tem will
remove
those I persons

who

desire

to renew

the excess

Ger¬
many,
used
period of 200 years of make these banks more stable and profitably for war land the second
history when
every to provide even greater money
Political and economic history American
step will remove the system which
shows that in free governments conceivable
type^ of: economic creating powers, the banks tended permitted these persons the op¬
of the past there has always been control was tried and every one to combine into large semi-mo¬
portunity to build a war machine.
failed. In the history of many nopolistic : units
a tendency to create new. causes
dominated
by
Under the heW decentralized
for expenditure, and instead of Utopian societies that grew for a centralized banks, with headquar¬
banking system each Land will
in
Berlin
and
branches establish a central bank. This will
compensating such expenditures few brief years in this country ters
by collecting taxes, the tendency in the middle 19th Century and throughout'the country. The most be a banker's bank for clearing
has been to shift the burden from soon withered, we can find noth¬ important of these are the sochecks, and for the fhOvement of
the present, to the future.. Taxes ing to justify any prediction'that called "Big Five" banks, the Deut¬ funds
between
banks
of other
a planned and controlled economy
are not popular. Politically con¬
sche,
Dresdner, and
Commerz Laender in the U. S. Zone, and the
ditioned men in a democracy do can succeed.
banks, the Berliner Handelsgesell- other zones of Germany. These
Ours is a price economy. Prices schaft
not discipline harshly those em¬
and
the
Reichs-Kredit- Central banks will also help the
11':
powered to vote them out of of¬ are values and value knows -its Gesellschaft.
commercial
banks
meet
extra¬
laws and follows them in spite of
fice.
But all this increased money- ordinary demands for credit and
It is this temptation to expand decrees and penalties. Prices will
cre^iing efficiency demanded gen¬ act as bankers for their Land Gov¬
public credit; in a democracy reflect eventually every human eral .stability if it was to survive. ernments. However, they will not
rather than to resort to taxes that knd economic force, debasement If
^depositors suddenly lost con¬ print their own currency or be
caused Alexander Hamilton in (his bf coinage, deflation and inflation.
fidence and demanded cash, there permitted to compete with the
And all the king's horses and all
Second
Report on The
Public
was bound to be a collapse.
The commercial banks for ordinary
Credit to call a progressively ?in^ 'the king's men can't stop values
banking system woud not have commercial business. Coordination
creasing public debt "the natural from functioning in accordance enough cash to meet the demands, and uniform supervision of the
disease of all governments".
With natural human and economic
Therefore, the banks had to pro¬ three Laender banks* will be as¬
laws.
tect the apparent value of their sured by the establishment of a
And in concluding our discus¬
I end as I began...
sion of government spending I
:
non-liquid industrial investments. banking council for the entire
If we want to continue to live
offer as a sugestion for present
This Was done by placing their U. S. Zone.
consideration the recommendation and work in a free economy we own people on industrial Boards
The
commercial and savings
must combat economic ignorance.
that Hamilton made in his Second
of Directors, and by encouraging banks, which will deal directly
We must, all of us who want to
Report on the public credit: "To
the formation of industrial cartels with the public, will be required
work and live in a free economy,
prevent a progressive accumula¬
and trusts. Firms #which refused to keep a minimum reserve of
tion of debt", said Mr. Hamilton, explain in everyday language just to
join the cartels or other com¬ their assets on deposit with the
how a Tree economy works.
"the
creation
of
debt
should
binations, or which threatened the central bank of their Land. These
"Our World to Build"?
always be accompanied with the
value of some large bank invest¬ reserves will be on hand to settle
For our part of that world let
means of extinguishment, the true
ment by producing goods cheaply. clearing balances. Keeping these
secret of rendering public credit us solidly build on political and Could not get credit, and there¬
reserves
-on
deposit
with the
economic principles through which
immortal".
fore found, it impossible to con¬ central bank of the Land, will
America has grown great and <
If we afe to avoid a ruinous
tinue in business.
When banks provide increased stability and
there are tidings of a new and'"
inflation in this country we must
Were heavily committed in two; safety for the individual banks,
Still greater America beyond the
firms in the same business, they since- they will no longer be able
quit diluting
our
currency
by
sunset.
deficit financing. We should with¬
encouraged the two firms to com- to deplete their liquid reserves
America grew great through
out any delay withhold expen¬
bine rather than lose money by beyond the danger point.
problems overcome by self-reliant
ditures of public funds that can¬
No bank will be permitted to
competing.
men, free thinkers, independent
not currently be compensated by
Thus the banks were part of the have or establish branches out¬
spirits, Let us not make! the mis¬
taxes.
side the Land where it locates' its
take of trying to solve our current great concentration of economic
The predomin¬
power in Germany, and the chief principal office.
problems by adding them
Dangers of Planned Economy
to¬
instigators of that concentration. ance of Berlin will, be ended. De¬
And this brings us to a very gether in government. Individ¬
The
concentration of economic centralization will continue with
brief discussion of a planned and ualism is the hope of this coun¬
the aim of limiting all banks to
try—any affinity for some collec- power was one of the first steps
controlled economy.
Landkreis or Stadkreis in
in the mobilization of Germany^ the
tivist form "of economic" effort
There are those who agree that
which they choose to locate.
'
would be the affinity of the moth and; was one of the reasons Gergovernment debt cannot go on in¬
rnany was able to organize and
This progratn is nbt intended
for the flame. '
■'
creasing without dire economic
'
as the final word on the German
\ Improve traditional principles Support World War II.
consequences, but they contend,
where we can, but let us ever
financial system. It is, rather, a
and the thought tenants the minds
}
Secret Rearmament
keep through the advancing pres¬
of
spine men high in government, ent £
j Between the two Wars, secret step forward in a direction which
grand unity With all of
that government can so plan and
industrial armament was carried is known, whose length or exact
America's great
there was

be, ignored.

money

tive to economic disturbances. To

creating powers of
which can only be

■

move

way

common

level—there

to separate the produc¬

tive dollar from

the non-produc¬

tive dollar.
U

Yet, most of the solutions being
today to solve our social

offered

and economic

■

control

economy
that high
income can be assured,

credit—more

will be freely paid.

and
of

and

credit

forms of guarantees, all
which will merely aggravate
new

past.

our

national
out

money

■■■

problems are in the
form of greater use of government

which

high taxes

The idea that

our

can

and

owe

bWe it to
it

j."

owe

economy can

men7 and

be planned and controlled by gov¬

•

this to ourselves.
our

grandchildren; We

especially
women

the

young

of America who

Germany.

provided
banks."
their

this

for

The

modified by fu¬

path

may

ture

quadripartite decisions.

German bankers,- in

capacity

well be

was

the large

Money

directors

and

carefully
that

It is

however,
backtracking
will
planned,

necessary,; so that it will form
participated in part of the future financial po¬
We have gone far enough al¬ into the" body of American de¬
Changing waves of all the seas. the quiet and long-drawn-out pre¬ licy, which in turn forms part of
ready in the use of our govern¬ mocracy. How grotesque!
the principles established by the
ment's credit.If we are to keep
It is a fallacy buried in a grave They died for this America, "this parations for war. To many bank¬
Pn+trHnm
Agreement.
''?
:
proper stability in our price struc¬
1644 years deep. From fabulous last best hope on earth"! *--J
ers, the advent of Hitler meant
'

inflationary forces.
■

ernment

js penetrating insidiously

rest under white

crosses

all

the world and beneath the

over

ever-

Owners of many

of the most im¬

portant industries,

war.

Its great money-creating efficien¬

are

by checks, and the checks in turn

shall say later.

salvation. It, meant the industrial
prosperity which always goes with
rearmament, and the rescue of the '

ment
and
aggression,
without
content to accept the causing obvious inflation such as
bank's promise to pay, in the form that which ruined Germany dur¬
of a deposit slip or check. A borrower ing the last war. The banks, arid
therefore usually receives a de¬ particularly the central bank or

people

nificant

Thursday, February 28, 1946

..Volume 163

Senate

Group Approves
femporaiyVe! Housing

Observations

vV;V>4"iftirtfyi'

(Continued from first page)

Warns of Severe Inflation
'

(Continued from first page)

After hearing only three wit¬
'Cisco, Potsdam, at London last Fall or during the .recent Vishinsky-.
Bevin brawls, or when Uncle Joe expounded his "Mein Kampf" a nesses, a housing subcommitte of
the Senate Education and Labor
fortnight ago; and besides, a war would air the more assure the com¬
Committee, ;on Feb. 15, approved
ing of a real inflation with a rise in equities.
7.

;

1139

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4468

their

families,"

stated.
"The

alife insurance

com¬

"There

about the;

doubts

are

Again, the labor situation and the slowness of reconversion are
complained of—but the bull market adage is never to sell the market

•ago.

.*jon strike news; since the bullish excitement there has been settleanent of some major strikes; and all figures show the attainment
of record peacetime production. > ^
'*i
Then there is the complete psychological turnabout* toward the
factor of delay in favorable events, which is deemed constructive in
bullish periods.
During the recent period of rising prices such de~
lay was demonstrated as a bullish point on the theory that the
"ammunition" of good news was not being expended. Now with the
,

•>

•

reversal

jn market

prices, the completely * opposite version is * em¬
braced.
'
i; ■:?
/
«
i
;
• Only one prediction about the; market can be made with absolute
confidence. With the next upswing in prices, "Wall Street" will
again perform a psychological somersault, completely reversing its
interpretations of the important continuing political and economic

elements—ex post

facto, of course!

$191,900,000

remaking

for

nor

prelimi-i lent to $35,000,000 to $40,000,000
.nary, to the Administration's vet¬ per year,
or
not far from the
erans' emergency housing pro-j "entire amount set aside for pay-'

vestment
Stock

were, according to advices j
Washington to the New York
"Times", Senator Mead, Adminis-{
trator Wilson W. Wyatt of the
National
Housing Agency, and
Philip
M.
Klutznick,
Commis¬
sioner of the Federal Public Hous-!

gram,

ment

from

"policies in 1946.

new

Government is to

great extent pursuing

Capital Issues Committee: "These administrative

the

jshackles

new

socialist revolution.

out of their way

Council is functioning as a coordinating body "in the council cham-

ber."

than expansive.

And in many ways the central direction is restrictive rather;

gradualism,

\' '

which has keynoted the

policy

toward

the

Bank

paid will not purchase the goods
and provide the services which
Were planned when their policies
-'What

•

taken.

were

than could

escape
the
policies by
that the Fed¬

fiscal

the Treasury so

eral Reserve authorities
U

may

out the needed fiscal
changes recently indicated by
Governor Eccles and Presi¬
carry

•;

dent Sproul.

Gardner Succeeds Bell
In Treasury

the

threat

* 7

eventual

President

Post
of

choice

Truman's

Bell, as
Undersecretary of the Treasury, is
O. Max Gardner, former Governor
of North Carolina, advices from
Washington to the "Wall Street
Journal"; stated on Feb. 19.
A
Washington lawyer since 1933, Mr.
Gardner is not kpown to have had
any previous experience in bank¬
ing, but is said to have dealt with
corporate finance in his legal ca¬
pacity. It is also stated that he
has a wide reputation as a tax
attorney. ' The "Wall Street Jour¬
nal," in reporting that Mr. Gard¬

successor

Daniel

ner's nomination had been sent to

shrinkage in the value of lifq in¬
surance

unit of removal and re-establish¬

The pervasion of capital and security-trading regulation by this

(

control

the Senate,1 went on to mention
protection through infla¬ that he had been closely associated
with Secretary Vinson for the past
"A total, of 557 local govern-; tion means to
policyholders can
ments have applied for 191,000 be seen from the fact that current several years, having been Chair¬
units, while 889 educational in¬ payments by life insurance com¬ man of the Advisory Committee to
stitutions have applied for 140,000 panies to policyholders and bene¬ the Office" of War Mobilization
units, according to Mr. Klutznick, ficiaries are upwards of $2,600,- and Reconversion, of which Sec¬
who estimated that the cost per 000,000 annually. If inflation retary Vinson was also a member.

that in lieu of engaging in

seems

beneficiaries will eventually find
that the dollars which they are

labor,' Mr.

the

supplied under
appropriation.

to avoid change, either for better or for worse, in

the existing form of control."

thorough overall planning out in the field, the National Investment
.V

three times

boast

who

plications from municipalities and
colleges exceeded 331,000 units or

the Government have gone

and

officials

brought about deliber¬
ately by Government controls of
the money market, are failing to
recognize the costs that such a,
policy involves, immediately and;
in the long run.
"If prices and the cost of living
continue to go higher, all life in¬
surance
policyholders and their

"The officials reported that ap-i

over

are

Banks

serve

individual

■est rates,

Wyatt said.'
-

As the "Economist" of London ha^ said, in com¬

menting

materials

new

dividends

"Public

with relatively little outlay

erans

(Control and Guarantees) Bill, and in its contacts with the

Exchange, the

of the local Federal Re¬

nors

the beneficial effects of low inter-

livable and decent shelter for vet¬

In¬

traditional policies.

collectivist fowl."

Both in the principles pertaining to the widely-heralded

help the national Federal Reserve Board and the gover¬

measure as an "essential"

ing Authority, which handles the!
investment and;
program.
The "Times" advices
Exchange activities, the British Labor Government is con- continued:
forming to its all-over policy of "gradualism." In this segment of the
"'As a stop-gap, however, this
.economy, as elsewhere, it is unwittingly developing a hybrid situa~t emergency
housing can supply
•tion which is neither Capitalist fish"

pressed, the greater is the cost of
housing and Army barracks into, protection to policyholders. As an!
temporary homes for veterans.! example of how the current low
The additional measure would au¬ interest rates
penalize policyhold¬
thorize a further $250,000,000 to
ers, a 1% increase in the net re¬
provide 100,000 more temporary; turn on investments of the Equiitdwelling units for ex-servicemen. able Society to around 3.81% as
The witnesses, who described the it was in
1933, would be equiva¬

In its indicated intentions in controlling capital

/ ;

exer¬

W/r cal Federal Reserve Banks to

war.

Stock
:v

the

boards of directors of the lo-

by Senator James pany is a major factorIn deter¬
Administration, and its economic
M; Mead (D.~N.Y.>, designed to
program is clouded"—-true, but surely this represents nothing new;
mining the cost to policyholders
supplement an appropriation ap¬ of life insurance protection. The
if
^nything, the Government's aims are less clouded and less anti*
(business than they were during the feverish market rises of ^ month proved several months ago for: iriore that interest rates are de¬

.■■■.!

banks

cise their legal control of the

interesj: return on the in¬

vestments of

member

Federal Reserve should

•

bill introduced

The

Parkinson

Mr.

amount

would

ment

Mr. Gardner's nomination was

should result in reducing the real

around

un¬

derstood to be in accord with the

value, J or

purchasing power, of
wishes of Mi*. Vinson.
Also, he is
such continued payments by one$2,000, '•
generally accepted politically
"Senator Mead declared .that
half, the annual loss in life insur¬
.within the Democratic party. f
the additional 1()0,000 units 'would ance
protection
alone
would
...

England, is evidenced by the exclusion of the all-out planners by the

Treasury's concepts of control. Thus there is now general agreement
that

the, Capital Issues Committed, in lieu of. being: an; instrument of

reform, will be closely guided by the Treasury and will not radically
depart

from

its

traditional

policies.

"Economist," the Government
jan

investment policy; they merely crib

words

recent

"are not

measures

even a

of the

blueprint for

piece of Treasury machinery

adopted by their predecessors, and add

the

little free-hand drawing

•

full

assure

the .Federal

use

sources

help

the emer¬

meet

gency,' and added:
.
j
v
" Tn practically every city or
throughout the country, vet¬
erans
and their families are in

for the most part remaining;

are

autonomous, within the framework of basic

Government policies like those arising from foreign exchange con¬

are

numerous

itself

On specific matters like issues on bonus terms and rights, the

trol.

leaving

technical

the

codification

administration

and

entirely to them.
*;v

"Reform" in the Stock Exchange sphere is occurring by

form rather than substance.

In the recent words of

way

official of the

Feb. 18.

Decline in January

high

Retail prices in

merely
Inflation
the

January, based

the Fairchild Publications Re¬

tail Price Index, lost the fraction¬
al gain that was recorded in December.
The Index, as of Feb. 1,

cur¬

this stems from the
fiscal policies."

and

$65 billions in 1939 and $112 bil¬
.Index shows a gain of 0.1% over
lions in 1943, Mr. Parkinson de¬
the corresponding period a year
clared that a chief cause of this
ago and an increase of 27.7% as
has been the inflationary results
compared with the 1939-40 low.
of the sale of Government bonds
The Fairchild report issued Feb.
to the banks by the Treasury or
18

Market Transactions
In Gov'ts in

4-u
u
1
• j
at 113.5 shows a decline of 0.1%
Pointing out that bank deposits , to the
same level as on Dec. t*
money
m circulation
ifThe • fractional decline in the Inskyrocketed to $175 billions cur¬ •dex wasdue to OPA readjustment
rently from $55 billions in 1929, in several items.
The composite
•

Treasury has informally given general directives to the Exchange
authorities,

Secretary of the
the Senate

Fairchild Index Says

Government's

•:!

them."

and

debasement

rency—and

accounts in the

of colleges turning
married veterans solely be¬
there
is
no
housing for

cause

rates

however,
are
sjhnptom of inflation.

newspapers
away

interest

^prices,

and

was sent to

Retail Prices Showed

security.
® "Low

City (London's Wall Street)

least,; questionable, if the event¬
ual result of the policies which
make ior low rates is social in¬

need

self-administered

be. -Under-

Treasury

low interest rates are, to say the

of housing. On
of their own."
'
practically every college or uni-;
The basic emphasis of the new financial legislation is on the' versity campus, the veterans' edu¬
cational program under the<CJI
control of new capital creation; but once the securities have been
Bill of Rights is jeopardized vby
created, their marketability, as well as the trading practices respect¬
lack of housing, particularly for.
ing previously outstanding issues, is quite unfettered. The activities married veterans. In fact, there
of the

The present benefits of

000,000.

town

desperate

The nomination of Mr. Gardiner

amount to $1,300,000,000. This sum
isr equivalent to interest at onehalf of one per cent on $260,000,-

Government's existing housing re¬

January

.Share and Loan

Departihehfi fberp has been "merely

of previous somewhat informal arrangements.

•quirements

those which have for

are

effect administratively."
future

tightening up:

The hew lists of re-!

long time actually been in

As to whether the Government will in the:

participate administratively in Stock Exchange supervision,

the best informed British observers believe that this will depend on

During the month of January,
1946, market transactions in di¬
rect and guaranteed securities of
the Government for Treasury in¬
and

sulted

net sales

any

event'the degree of control here will continue to lag considerably

behind that

other segments of society.

over

accounts

Mr. Parkinson

„

The following

In Canada there is

tion of the

ever,
'drive

centralised quantitative control or direc-

of investment; and there is none in prospect.

How¬

quantitative

repercussions

bond " investment,

.speculative activities, and general inflation of capital markets.

-February

$9,924,000 sold
105,100,000 sold ■■'•■■■{

MarcK;

11,500,000 Sold

April J

•

December

_________

.well

finance,

can

appreciated from the week's

remarkable

•»speech by the National Union of Mine Workers leader, Will Lawther;

>-Speaking like the toriest Conservative M.P. aj

labor rally in New-

_!
_________

March

j.'castle, he cautioned his fellow trade-unionists that publicly owned
industries must

run

cannot

expect,

nor

should

you

was

On the

similarly orthodox, saying "you

attempt, to bring all industries under

V. public ownership simultaneously

...

you

have got to proceed by

v/*/^ages^,.'
I';4 U

56,414,050 sold

October

17,000,000 sold
150,000 sold
12,526,000 sold'"
300,000 purchased
No sales or purchases

July/fi.^/fc___4.^_;w__
August
September •

:r«

:,V!'

No sales or purchases

December

1946—

•/

■;■

■

January
"'Less

;

November

independently of political control.

.question of timing of reform he
•

$67,475,000 sold
48,131,000 sold
55,600,000 sold
34,400,000 sold

May

than

$50,000

*,
'*;/ •:/>
$8,137,000 sold

sold.

•

!v !

•

the

month,'many of the items used in

luggage

electrical

and

abandon
desire
for

people.
vC--

;

(wear,

should

costs, all the

;
••

contrast

household appliances.
their
"Changes in prices for the refanatical
"easy, mainder of the year will be much
money" at any price, and es* greater than, during the past 12
tablish a fiscal policy which months, according to A. W. Zelowill look to soundness in the mek, economist under whose sufuture. Specifically, they must pervision the Index is compiled,
stop trying to depress interest fje points out that the wage and
rates by adding to the na- 'prjog announcement will be retion's money supply through fleeted
in higher retail prices.
banksV purchase of Govern-^he gain in wholesale levels bement bonds, either directly or tWeen now and the end of the year
on the market. A low interest
may approximate 7J/2% and part
rate is not worth the price it of this will be reflected in higher
ities

5,900,000 sold
12,000,000 sold

2,940,000 sold

April

"In

The Federal Reserve author-

1945—

January4
February

June
»

this country.

18,992,500 sold
28,100,000 sold

i—

October

industry

i
•.

20,500,000 purchased
10,484,000 sold .
<•

September

showed frac-

groups

j the Index showed changes.; This
j includes silk and woolen piece
surplus out of which, annu-1 goods, sheets and blankets, aprons
ally, / there can be som e re-. arld house dresses, furs, women's
/, ductioh of the huge debt that Wear, men' underwear and shirts,
now
burdens the people of.men»s
clothing, infants', under-

the 1 major

is still sufficient to supply a

9,965,000 sold

November

The marked retardation of British nationalization in

: 16,511,300. soldi

June"1

August

make, we must see to it
that the Government revenue

—

compared with a year ago each of

greatest changes.
reductions

may

January C——

May,—^

budget ^onai changes, with piece goods'
kind of deficit: an(^ woinen's apparel showing the

In whatever tax

Government securities for the last
two years:

as in England and in the United States, there has been a great
on interest rates and yields* through central bank open-market

operations—with

course

Federal

stop any
financing.

1944—

„

the

and

tabulation shows
transactions
in

Treasdry's

•

Balance

Feb. 15.

the

outlined

also said:

"Changes during the month oc¬
curred in piece goods and wom¬
fouren's and infants' underwear. As

the market by the banks.

point program to avert the threat
of extreme inflation, as follows:

$8,137,000,

Government

purchase

bonds

re¬

Vinson announced

Secretary

how long the Labor Government will remain in power, but that in
>

other

vestment

the

1 retail levels."

;

THE COMMERCIAL & FINANCIAL

140

Iv-

CHRONICLE

Thursday, February 28, 1946
—r—

certain

International Aspects to
(Continued from first page)
X'dksS'wL
like

—

highway of
stretching for 2.400
great

merce

Newfoundland

from

com¬

miles

/the United States and Canada, its

;

producing

for

potentialities

•

wealth limited only by some rap¬
ids

Montreal where the existing

canals

now

this

short

£ removed,

you

should

obstruction
.

most

The ques< is
whether

vessels.

before

tion

for

shallow

too

are

ocean-going
v

New York

northern

between

and

"i
- '
•
1 •"
the legislation would
,

Secondly

i provide, for the
the International
of
hydroelectric

construction in

Section
works
which would
convert the tor¬
rential flow of the St. Lawrence
into one of the greatest sources of
cheap power in the world.
The
single power dam to be built will
have a generating capacity of 2,200,000 horse power half of which
\yould be made available to Can¬

ada

you

power

the
before

reserved

bill

The

States.

United
^

half

and

Rapids

would wisely provide that the

United States share of these pow¬
facilities be turned over as

public

;

project to the state

power

New

will

which

York

offer
follows:

I;' hereby

i abroad.

all

this

■

water

farmers in? this

area

peted
their

Feb; 16.1946 i

The Secretary of State.

For

(route to the sea is needed.

The Honorable

in-

the

into

dustrial and agricultural, heart

St. Lawrence Seaway

the record reads as

ior

which

stau-ment

markets

world

Our

have

transportation

com-

despite

disadvan-

•

Seaway
and
Power
Projects and their effect on the
national security..
^awrence

principal factors which in¬

The

cages.,

west

at the

will

i!or

working population—in¬

the

people

national

emergency,

they would provide:

of living to which
justifiably aspire, we
make use of every single

must

that

resource

available.

Our

Government would be

Some of the

under $200,000,000.
■

work

allocated

something
United

the

and included in this esti¬

States

such as
the MacArthur
Locks, has been done since 1941
.and there will be some changes
mate,

ease

the strain dur¬

ing wartime on rail transportation
and port facilities of the East and
also

This

Coasts.

Gulf

could

seaway

serve as a reserve

route to be

nation to get .more out of what

action.

A large source of cheap,
dependable power, which can be
generated without the use of coal
or other critical combustibles and
(c)

without

crowded

use

rail

uighway transportation facilities;
this power would be available in

which, during World War
power deficit area.
The foregoing factors prompted
the Secretarly of War to support
the proj ects in 1941 in the inter¬

an area

was a

of national defense.

ests

•

,of many years

with the Canadian
/Government on a variety of ques¬
tions such as sharing of the cost,
engineering plans and so forth, in
the negotiation of which the State
/Department has cooperated with
other agencies of our Govern¬
The result of these nego¬

ment,

tiations

Agreement

cooperation

with Canada would in itself
stitute

remarkable

con¬

example of

But,

volved

may

this

not

are

asked—aside
issues in¬

just

public works program?
swer

to that is

part"—but there is
terest that our

The

an¬

Jarger in¬

Department has in

•the matter which

turn

is in¬

timately related to the principal
.

question

which

about

this

What

does

out

all

must

legislation,
the

this

United
to

construction of the proposed works
would not facilitate invasion by
that route since the power

asked

namely
States

ROBERT P. PATTERSON,

Secretary of War.

ex¬

development
wealth

From .the

is clear.
the

standpoint of

our

answer to

I have here

na¬

letter from

Secretary of War which states

that

the
•

construction
■

of- the

Sea.

matter of importance to

way

our

national

defense.

The

full

States

Lakes.

among

Seaway

are

the

around

Almost

highly

the

unique

industrialized

sections of the
world, our middle
western
manufacturing areas have
grown up far
transportation.

cion

that

of;■ the

^he United
Great

for

low

the

from
One of the

away

this,

cost

the

since

security, the

the

.ven greater.
The heart of our
agricultural and industrial. wealth
jes in the great middle section of

easons

Promotes National Security

of
our,
national
advantages
of
the

construction

aeen

tional

before you.

now

The

St.

been

First

chief

has
transports

course,

inland
Great

ocean

.Lakes.

World

described

The

Canadian

will

reduce

human

Survey of 1941

uct

the

expenditure

energy per

produced."

unit lof ' jprdd-

Iti will

make

possible not only to cope w$h the

transportation
will

arise

Lakes

problems'

.our

industries

■.

ouside world for

materials,

.rpw

which
present Great
call' upon the
and more

but

serve

other

also

will

industries

Ajvhifh

may be expected to devel¬
in this area in the next 30

It will enable, the farmer

years.

forts

build up an
economy
are

world"

the

taining
of

expanding
Successful,

Seaway will assist
the

world—and

will

physically 'possible to
increased
which

in main¬

share of the, markets

our

volume

make

move

trade

the
to

must look forward.

foreign

must
rot

countries and which
its raw materials

procure

onjy fr0m within the Uniied

States

but

increasingly

Added to this

from

•

memorandum

sufficient

voluminous

copies

and

have

not

States

utilize

and

im¬
the

certain

the

Sub¬

Under

the
Constitution, Con¬
Is given power to regulate
commerce
with foreign nations
and among the several states. This

clause has for over 100 years been
construed by the Supreme Court

Wet¬

less

members

gress

charge.

of the

all

the legislation further-

which

entitled

free

Canada

Canal

made
in

in order to discuss this aspect

Gov¬

expense

•

im¬

to 'I' vest

the

Congress plenary

interest

and

tomer

is for

second
in

turn

that

can

tent

utilize-to the fullest

this

great

source

ex¬

cheap

electrical power.
The results are
incalculable* in terms of increased;
wealth ..and

for

power

added

our

purchasing

nation.

have

already Seen what the TVA, the
Boulder
Coulee

Dam

have

the

and

done

for

re¬

spective f• areas,' The part of the
United States- which would; be

The stronger
the better it,

there

interests

are'

powers of, Congress to au¬
thorize, to /approve or to carry
out
agreements
with
foreign

countries in the field of the dele¬
gated powers of Congress.
gress
to

And

the

St.

will' be such

that

our

many

UNRRA

struction and Development.
latter

tant.

The

value

long

been
,

cent

made

mark.

also

water

The

available

has

other

Committee

mem¬

that

the

power.

power

recognized

reports

for

needs

low, cost

undoubtedly

generated
errak

and

area

have

seen

water

Norway
across

consumption

stitutionalit;*.

some

Skag~.
Den¬

In the Soviet Union, China
other->parts of the world,
water power development is con¬
stantly increasing. We must make
and

and

listening

nature.

fears

resource

-1«

Constitutionality

Fears
the'
ence

have also

*P r

been raised by

opposition to the St. Lawr¬
project that • the
pending

agreement with Canada may not
constitutionally be acted upon by
the

the

Com¬

memorandum supporting

the ground that

legislation was within the'
power of Congress to legislate on
financial and monetary matters.
Other

examples
of agreements
the United States

entered into by
•

in J:
are

•;?

Treasury De^-

the

but by
of brain

Project

the procedure on

and of each
country. But our

these

every

the State and

mittee

country has become great, not by
utilizing

in the Senate the
raised as to the conof the procedures

partmentsfiled p with

resource
our

power

will
the

re¬

new

a
foreign country,*
consideration of the

question was

with alarm. .This was,

section

the

Agreement

Every technical and mechanical
in
the history of the

each

of legislation ever
relation; to anv agree¬

with

During

advance

.The

of the most impofr

pieces

ment

frue of the
by the St. Lawrence power railroad, the automobile, the air¬
development has been appower plane—of
the
development
of
stimulation

was one

passed in

served

deficit

in the Inter¬

Monetary Fund and the
International
Bank
for
Recon¬

expansion that will be stimulated
through this project. * •

Food and Agri¬

dent to participate

the

viewed

the

national

only of normal growth ih the

been

and

Organization and finally
in the last session of Congress
Passed' the Bretton Woods Agree¬
ments Act authorizing the Presiculture

United States but of the industrial

has

Congress

joint

port cities deemed to be affected
will gain new traffic as the result

world

unconstitu¬

through
resolution has authorized
United States participation in the
International Labor Organization*
The

tional.

in¬

involved

cedure

all

foreign

respect to patent
copyright protection; and to
reciprocal trade agree¬
ments and it has successively ex¬
tended the trade agreements leg¬
islation over claims that the pro-

Sea¬

survey

treaties;

with

enter into

bound

ocean

the

postal

agreements

and

absolute necessity to help

handling

into

enter

countries

over

Lawrence

Con¬

haa authorized, the President

makd

interests raise the contro¬
versial
issue
of
public power.
Other witnesses will appear in
favor of the St. Lawrence proj¬
ect who can testify with greater
authority on these matters than
I, However, there is good author¬
ity for saying that these fears are
unjustified.
The St. Lawrence
Survey of the Department of
Commerce completed in 1941 in¬
dicates
fof example
that
the
prospective increase in freight
the United States

and ; with
of, the, exercise = of

nations

the

;that the entrance

markets.

legislation to

construction;

Canada

with

lations

power

not

other

ocean-going vessels into their
territory:; will injure them eco¬
nomically; ;* Cogl interests allege
thai they will lose all or part of
Canadian

the

dicates

States

of
projects of this nature simply be¬
cause such legislation is related to
or
is designed - to effectuate an
agreement with-a foreign ; coun¬
try. In fact there are many prec¬
edents in the, history of our re¬

Great Lakes shipping in¬

believe

make

United

the

its powers to enact

authorize

capital investment will be preju¬
through diversion of traffic
Seaway. Certain port cities
entertain; the? same; fear of loss of

way an

the Tennessee Valley Au¬

thority, the Boulder Dam and the

to the

the

construction

Columbia River projects.

diced

Grand

their

such

program

traffic.

hydroelectric
projects.
the Congress

life

nomic

Can¬

Railroads

that

cus¬

object 'strongly
of construction.
Some. railroads believe that their

terests

and

by the Federal Government of
navigation and power projects of
profound significance to the eco¬

Department of State real¬

to. this

improvement

The Congress is not deprived of

traffic. .Similarly

Section

are

the

Uncier these powers
has authorized the

has

best

by the Fed¬

Government of projects re¬

lating

this country 'that!

shall be har¬

eral

us.

The
izes

Canada

since

our

nessing the waters of the Inter¬
Rapids

private interests

Furthermore, the economic de¬
velopment of the Great Lakes
Basin in Canada is naturally of

national

bers

has progressively grown into
surplus producing area which
now
must ship its products not
only within the United States but

its

the next 15 years

countries.

does

traffic in

Power Resources

this

area

United

land

already

Effect

project has
the
Depart¬

"among those projects which

But

War

The
contains
a
historical and

the

tion

Lawrence

ment of Commerce

But from the standpoint of the

?.'*

;

—

get

justify the

penditure involved?

Congress for approval
the agreement with Canada that

plants,

'ocks and canals could
readily be
unusable in the event
such action became necessary.

other

obviously "yes—in

project will

it will bring
neighbor Can¬

our

ada's best customer,

the

the
ef¬

domestic

any

Lawrence

that Canada becomes

the

pretty much of

^character

St.

ted

as our

;
eastern
North America, the
Joint Chiefs of Staff consider that

legislative background of the St
Lawrence
project.
Since • the

development.
For this purpose,
we have negotiated and
submit¬

Finally,

statement

.long been

industrial and agricultural

our

compete

possible route for invasion

sub¬

also

our

economically

legal

memorandum

committee, I shall be glad to ap¬
pear, again later during the hearings if the Subcommittee ; desires

the

world market.

ley is

Subcommittee

cluding

words

the

Although the St. Lawrence Val¬

argument to
this
position.

full

the

velopment and of the staggering
production
performance of the
United States during this war; We
m.ust make our plans carefully to
maintain this margin of superior¬
ity and to go constantly forward

other

crease

portation potential of the United
States.

utiJ i *9 tion of navigable waters in¬

can

trans¬

In support of this
I have. filed with the

countries in the construction pro¬
vided in the pending agreement.

had

larger to the extent that he

and

brought

division of cost between the two

have

industrial

through legislation to ap¬
and effectuate the pending

industrial de¬

would

security to complete
such as these,
which
distinct military ad¬
vantages and would materially in¬

the

powers tg .control navigation and
to authorize < the construction by

projects,

national

legally

may

Lawrence

portant improvements in the sys¬
tem has been about $133,000,000.
It is proposed that Canada will be
given credit for these expendi¬
tures in arriving at the over-all

rendered

international cooperation.
from

in the interests

St.

yet become available for distribu¬

the

and

to get more out of his wheat crop
and perhaps to
make his crop

the

Agreement
of
/March 19, 1941 with Canada the
approval ? of which is provided
tor
in
the
pending legislation.
The negotiation and execution of
this

that it would be

States

the

since

countries.

put into the job* of producing
goods, relatively speaking, than
any other country in the world.

In the

the result of
price variations. The Corps of
/Engineers will address themselves
io this point.
as

the

energy

The cost to

overseas

light of the experiences of World
War IXj in which total mobiliza¬
tion became a near actuality, it
is evident that the prospective in¬
crease
in. our war potential that
— ^
International Negotiations
would. have been, contributed by
Required
these projects, had they been com¬
What
is
the
interest' of
the
pleted, would have been of ma¬
terial assistance in prosecuting the
State Department in this matter?
war.
It is probable that attain¬
*The obvious
basis of the State
ment of success in, any future
Department's interest is that for
world conflict would require utili¬
geographical
reasons
the 'St.
Lawrence project must ^ be built zation of the ultimate production
in cooperation with Canada; The and transportation facilities ofme
United States and possibly Canada.
working out of the plans has re¬
The Joint Chiefs of Staff consider!
quired negotiations over a period
these figures

the

sion

destinations,

about

stantiate

ada. For years the waters of the
St.'Lawrence have been a source
of mutual
concern
to our two

for

United

Chairman

bur

».•;

climate, natural re¬
sources and fertility of soil which
shipping, which couldf by diver¬ have made it possible for us as a

(b)
An additional line of com¬
munication, navigable by ocean
cargo

project

agreement.

improvements

the miracle of

some

harness

river.

portant

of other routes by enemy

States

involved

waterway

£he cost,of the project.
It is estimated that all of this
the United

conditions of

coastal shipyards.

the

contention

time

waste

has

some

construction

prove

longer

enormous

that
to

can

ernment

margin of superiority, in this re¬
spect that is, the basic reason for

cost

the

the American people but because
we have had in the United States

tion

be the benefits that

which special genius for production of

supplement

used

of
State believes that this position is
incorrect and that the participant

about also .for

great civilization

Shipbuilding, and ship re¬ in the middle west has competed
pair facilities, located in a rela¬ in the world market despite our
tively secure area, capable of ex¬ higher living standards and high¬
pansion and of conversion for er costs, not only because of the
;ould

The Department

(a)

nandling deep sea vessels,

The

areas.

the argument goes,

treaty.

% Not least among the advantages

have

afford

this

•

profitable

other

when

failure

standards

our

has

wealth

cluding returned service men—at

these

must,

to supply jobs:

necessary

our

and

come

own

increased rate which

projects in the interest of toe na¬
tional security are that,
in the

fluence the consideration of

event

but

■

used in the event of interruption

$285,000,000 on the basis of 1941
figures, of which about one-third
would be paid by New York so
that the total cost to the Federal

the

resources

power

Every bit of/ power that we add
to our capacity increases our abil¬
The time has come when we
in conformity with your request
of
5
November 1945, the Joint can no. longer be profligate with ity to use the world's raw mate¬
rials and to provide the finished
chiefs of Staff have examined the our natural resources.
To main-,
matier
of
the
Great Lakes-St. tain our production in the middle goods which are needed in our
Pear Mr!" Secretary:

with the Federal Government in

will

that

development of
keeps pace
our
industrial development.
While the deep water navigation
through the St. Lawrence will
promote international trade, the
power. made
available by this
project will serve the same end.
our

with

conjunction '/ with legislation
the
International:
Silver

Agreement, •; the
International
Wheat Agreement, the Stabiliza¬
tion

Agreement of 1936 and vari¬

ous

aviation

agreements,

all

Which have been entered into uri-.

Congress through legislation, der the authority, of existing leg- (

^Volume
islation,

the

and

agreements

after

War which

debt
the

THE COMMERCIAL &
FINANCIAL CHRONICLE

funding

first

beginning

early as 1874, author¬
the
improvement - by
the
United States of boundary
streams,
including connecting channels in

World

ized

were

committee

the

Number 446$

163

negotiated by a
representatives of

executive

and

branches of the Government pur*
suant to Congressional authoriza*
tion

and

later; submitted

Congress
'

;

■

expenditure of

Foreign Relations

the

foreign

agreements

sanction.

entered

branch

the

validity of

executed—or

respect
been

held

such

invalid

negotiation

tion

with

"■

the

with

respect

are

for-

for

the

high¬

United

States

to'• the

-■

rights

Canada

navigate

the

Great Lakes-St. Lawrence
Sys¬
treaties were submitted to' tem
including the wholly Cana-*
the Senate for its advice and con¬
dian sections thereof.
These trea¬
sent to ratification than in
any ties having
.vested in the United
other corresponding period in re¬
States reciprocal rights to - navi¬
cent
history.
Furthermore
it gation in
boundary waters and; in
should be made clear that in con¬
the
other waters of the Great
sidering the St. Lawrence Agree¬ Lakes-St. Lawrence
System, the
ment, we are not dealing with the only question
tant

f iype

so-called

remaining is the
method of furt her
developing the
usefulness of these rights
through

"executive

•

agreement" that can be entered
into by the President under his
own, exclusive powers as chief
executive and diplomatic officer
of the Government. and
com¬
■

reciprocal improvements. For this
purpose the parties agreed
such a method in the

Treaty of 1909 whereby
special agreements may be entered
into by the two countries ex¬

merous

types of purely executive
arrangements of this nature which
not

relevant

at issue here.

the

What

cerned With in this

are

case

pressed by the concurrent

is^

uses, obstructions

for¬

eign agreement Which by its terms
does not become effective until
the necessary enabling legislation
of the two countries has been ob¬

tained and WhicK^ because Of the
very nature of its subject matter,
cannot be carried out in the ab¬
sence
of such legislation*
The

re¬

diversions of
boundary waters. The 1941 Agree¬
ment mth Canada is a
special

con¬

ciprocal legislation, to provide for

problem

Boundary

'Waters

mander-in-chief
of
the
armed
forces. There are admittedly nu¬

are

upon

agreement s which tinder the

1909

Treaty

may be brought into force
specifically there provided by

reciprocal legislation.
Finally; it nas been said th*t the
.

1941

Agreement
may
not
be
brought into force through legis¬
lation because Articles
and IX
,

precedents and cases referred to
above make it clear that it is en¬

purport to affect rights created
by previous treaties.
Because of

tirely

the doubts raised
by this conten¬
tion and in order to facilitate con¬
sideration of the
project on its

appropriate

for
United
States participation in this great
project to be authorized in this
manner.

The history of our relations with
Canada contains many examples

of arrangements of great
>

impor¬

tance to the economic relations of
fhe two countries ivhich have been

merits,
the
pending
legislation
provides for the Omission of these
articles from the
approval of the

Congress.
The
Department
of
State will, of
course, follow the
provisions of the

bill, if Congress
it, to negotiate a treaty
with Canada
covering these two

concluded through the. enactment
of reciprocal legislation by the

enacts

legislative bodies of the two coun¬
tries;
Thus
joint
Commissions
have been created to supervise the
construction of great bridges over

Articles.

international streams such

the

This removes the argu¬

merits with full

and simultaneous proclamations—

agreement extending to nation
als of both countries reciprocal

# privileges to .render aid to vessels
of their respective nationalities in
distress in the waters of each

country.

1911

President

Taft

concluded

an
agreement
with
Canada for the reciprocal lower¬

Some work
stoppages
"more like, political

The United States

acted

favorably

upon

the agreement but it did not be¬
come effective in the absence of

corresponding action by Canada.

Expenditures in Foreign Countries
\
v

-,It has also been lightly said that
Congress cannot authorize the ex-

penditure of funds for
tion

foreign

construc¬

countries.

The

memorandum1 filed
refutes
contention by numerous and

long¬

this

standing precedents.
Rivers and
Harbors legislation has
frequently,

lacked

the

not

was

because

necessary

two-

into

between

project.

power

submitted

seaway

Because
the
form

agreement instead of a
matter was referred to

and

was

treaty, the
the Senate

Commerce Committee in the Sen¬
ate, but no action' was • taken
by
that
committee on the agree-

ment.ff^v.^;;
On

bill, to

which

agreement
entered into on March

19, 1941.
This bill was referred to
the
Commerce Committee of the Sen¬
ate and the Committee held ex¬
tensive

hearings.

The

hearings
primarily to the

confined

were

appear

constitutional issue of whether the
agreement should be submitted to
the Senate for its advice and
con¬
of

conditions

opinion,,that the matter
properly
constituted a .treaty instead of an

and

Republican:

in¬

wage

Arthur

of Kansas,

Capper,

said

statement at

Mr.

Washington on Feb.
Capper^ Associated Press

said,

contends that "there

element in labor
leadership
that is more interested in
promot¬
ing discord than in the welfare of
ail

the

workers."

The

Associated

Press further quoted him:

"This

element

into

way

has

DeEf^a,-

1944j by
thus the

Now,

vote of 56

Agreement

25 Sw

was

rejecffd4':

further effort is being

made to secure the
approval of
the 1941 agreement
by the intro¬
duction of S. J. Res.
104, provi¬
sion being made in this
S.

J. Res.

pending
excepting from

104 for

the

approval of Congress certain
articles of the 1941 agreement and
this resolution has been

key positions

its

the

Senate

few labor unions in
key industries,
and seems to be

promoting strikes

for the ultimate
purpose of chang¬

ing

our

form

correspond

tern."

government

the
,1;

Moscow
.

•

Last

week,

hearings

are

lished

standards

and

prac¬

the
underpaid and over¬
worked seamen
employed on for¬
in

There

are

record also, state¬
by representatives of

our State.

are

likewise to, be found,
resolutions adopted by our
legis¬
lative
body, memorializing the

Congress

this, subject.

Other
spokesmen have
been
hemjd who presented their
views
as to
the position taken
by our
State

this vital question.

opinion that

fair, and

It is

reason¬

able

review of the entire record
it pertains to the
policy which

State has

adopted, will

abundantly clear

power

that the

there

are

the

lines.

the

high¬

our

manpower

carried

some

by the rail

produce more air¬
railroads' task would

have been lightened considerably.

Transportation Improvements
i Today,
different.;

conditions

;

The

vancestmade

engineering
sible

for

science

have

each

are i

vastly

remarkable

made

system

ati-

and

pos¬

trans¬

portation to carry an ever-increas¬
ing volume of freight and pas¬
traffic.
: The "• railroads,
moderii lightweight equipr
merit,* with
diesel
electric®; or:
senger

with

turbines
can

electric

loco¬

haul from 20 to 30%

traffic

than

was*

the

case

Our airlines

war.

are

expanding rapidly throughout the
State; and throughout the'globe.

to be found

lines

ules

and

additional

sched¬

being added at brief in¬

are

tervals to the existing system.
Experts have predicted that there
will be 500,000 planes of all types
in the air within the next 10 years.
The
Federal
Government
con¬
structed

thousands
of
airports
during the war and they have
already authorized the expendi¬

concerning the seaway'

were be¬
fore them for action.
In the de¬
bates upon this - question before

United

had the airlines and

plants
ships, the

before the

policy ! have

the

and

traffic

State,

in mind is that which
has received
the approval of our
legislative

did.

they too would have taken
of

motives,

Senate

systems had the material, the

steam

public office who favor
the seaway, as well as those'
who
are pronounced: in their
opposi¬
tion to it.
But the

the

If our canal system had
and the manpower it
have
carried
50%-V more

traffic than

New

Naturauy,

shipping

the-• ships

seaway.

men

while

facilities.
could

make

years, has favored the
project, while opposing the

freight
awaiting

the

Authority o|

store

equipment

with

There

held

was

way

of billions of dollars on'new

ture

airports to be constructed
idly as conditions permit.

States

The

Would

the

one

question that was empha¬
Because the- record with
reference to power

sized^

development

is clear end because I have
made

Affect

While

there

New York

Ports

two

are

strongly

sides to this vital and
question contained in

record,

evidence

there

presented

witnesses

and!

position
known
time
and
again in support of power

my
time

development, I shall discuss

with

in greater detail the matter

you

of the seaway, which

involves the
question of transportation.

volume

rap¬

;

considerable

by reputable

from

reliable

four

and

come

present : circumstances
have
a
surplus
of
trans¬
portation here in our State. °Our
systems

of transportation, high¬
airways, waterways, and
railways, for the most part, ra¬

ways,

shipping points of our State. Dur¬
ing the war when the airlines,
barge canal lines and highway
transportation systems • were un¬

freight::

futures*

1 i:;'

New modern

palatial passenger
being
manufactured.
Strong, powerful lightweight
trucks are on the assembly lines
and here again the Federal and
buses

the

are

State

Governments

billions

construction

have

ap¬

for

dollars

highways
throughout
the
country.
Our
highways ' will
compete
wkh
every other system in these post¬
war

days for their- full share of

the Toad.

New

York,

all

the

preserved its waterways.
we

even

States,.
In fact,

expanded

and enlarged
system
until
today
out of New York we

canal

our

radiating
have

barge

necting
on

New

Lake

canal

York

Ontario

system

with

and

;

con-

Oswego

with

able because of \ material, equip¬
Bi-f-;
falo on Lake Erie.
In addition!,
ment and manpower
shortages, to
make their fullest contribution to we have a canal system in operas
u,
I tion between Albany and Montthe
"

carrying of

heavy? war

our

sources

will

indicating that the seaway
adversely affect the- rail¬

roads, the canal systems, the great
ports of Buffalo andAlbany as
well

the

greatest of all ports,
that, of Greater New York. There
is evidence in the record
that it
•

will likewise leave
the communities of

blight

the

our

system

those

and

whose

also

upon
southern

barge canal
communi¬

futures

depend upon
the big centers of
population that
will be adversely affected
by this
legislation.
-

Would

Cripple
'!■'

Great

Lakes

Shipping t r#:."-;

There is evidence in the record
from

the

spokesman of the ship¬

the

task

with

placed

was

railroads.
the

upon

are' all

You

situation..* The

our

familiar
Federal

accommodating

Maritime workers, along

with their

taken

ships and barges,

from

the

Lakes

and

were

canals

duty elsewhere.
Shortages of
gasoline, tires or automotive parts
all

had

time
and

their

effect

upon

war¬

traffic

problems.
However,
with all the changes and re¬

strictions and shortages, our trans¬
portation systems, particularly the
railroads, carried the unusually
heavy load of traffic arising on
the

Great

Lakes

days of the \var.

throughout

the

At times they piled up so

ves¬

The

advances in the develop¬
ships of all types urgently

ment of

required for military
one

the

most

purposes

constructive

chapters of the nation's war pro¬
effort.
Here, great prog¬
ress is evident.
Amphibious boats,
landing craft and small sea-going
cargo
ships are to revolutionize
shipping on our inland rivers and
canals. ; Ships to carry cargo from

duction

Great Lakes cities to the Atlantic
Seaboard ports, to Gulf ports, and
even to foreign
ports, are a real¬

ity

much

ocean-going

sels.

Government requisitioned the air-r
airships.

highways, will be^
reality in the very, near

the

Under

six-lane

even

and passenger,

propriated

Already Have Surplus of
Transportation

diate from the great port of New
York to the principal cities and

Adversely

the

'The

proponents of
S. J. Res. 104 were heard
by the
Senate Foreign Relations Com¬
mittee while the
opponents are

pat¬

carry

result

storage J depots
and
holding points had to be estab¬

with

the

; new

con¬

tices, will find themselves shar¬
ing their seasonal employment

Foreign Relations

where
nbw under way.

ties
some

American

referred

tier, those along

worked

keeping

ports tnat

unable

with

away,

important

obtain

that

ships and whose

working

goods

ocean

were

freight, of ex1934v the question of
^gte^enL:^nd >that > therefore it ine ,power from-the -Separating! press, of mail and of passengers
seaway was that
should, be considered by the Sen¬
wijl .travel byak wiUMcrease
if
raised add it is
my opinion that if
ate ^Foreign? Relations*
amazingly and continuously with
Committee the separation
had been agreed each
succeeding month.
Fpr the
ipsteadoftheCommerceCommit- upon at that time it
-would, in. the most part these lines, whether
,t£e.,
However, an effort was end, have
unquestionably received they be intra-state, inter-state: or
made to bring about the
approval the Senate
approval,
of the;, 1941
international, radiate out of the
agreement through
lit the
an amendment from
hearings and debates on great international metropolis of
the flocft^hf
the legislation
the Senate on a
creating the Power the world, the city of New York.
pending R^teijsf
.and Harbors: Bill.1
The highway system with mag¬
This aridehtir; Authority in our State, the ques¬
tion of power
ment was defeated on
development was nificent thru-ways, as well as

supported

Senator

creases,

these

man

body when called upon to speak
ratification, as in the case for the
people, when resolutions
treaty. : Although no formal

report, was made by the Com¬
mittee, the Committee was of the

the

seamen

sent to

improve working

who

wage standards and
ditions
are :Mn ft

the

approve

was

competition, but the

ships

cargo

will
compete with them
available .traffic, ' Not only
ply the Great

our

introduced in the Senate S.
1385,

traffic along our

Lakes and those that
navigate our
barge canal system suffer from
this

Sept. 28,1943, Senator Aiken

Great Lakes

will the fleets that

the Power

19, 1941.

provided for the
the

our

which

for

ments made

the ' United> Staites

This agreement

conclusion

effect

their industry
will be crippled
by the cheap com¬
petition of alien tramp steamers

found

an agreement was entered

and Canada dated
March

that

the

eign: flag ships,

The 1941 Agreement

maneuvers"

thanstrikes

advices

Congress

pro¬

Call Some Work
Stoppages

force when the necessary

both countries.

thirds vote.

Akin, tci Political Maneuvers

17.

■

therefore
by the Senate

being heard this week.

legislation had < been obtained in

of the

assurance

cedure which has been
used.

ing of tariffs, which agreement
provided that it would come into
enabling

42;

Committee

constitutional validity of the

46 ; to

approved

Niagara and St. Lawrence rivers

supervise the operation of
these bridges.
In 1893 the two
countries concluded through the
passage of reciprocal legislation

Thus it is hoped that the
way
has been cleared for
the consid¬
eration of the
agreement on its

and to

After these exhaustive
hearings it
was reported
favorably and con¬
sidered on the floor of
the Senate
for, a considerable
period of time
when it was
finally voted upon.
The treaty was
rejected by the
Senate in March of
1934 by a vote

ment.

for
,27*foot

providing
of

Lawrence Seaway

ping interests

waterway.
This treaty was re¬
ferred to the Senate
Foreign Re¬
lations Committee and
extensive
hearings were held during 1933.

Next,

Inter-

which the United States is a
party
and
under
which
the
United
States is given the same

impor¬

Canada

Treaty

the ; construction

eign arrangements which must be
reserved exclusively fot the
treaty
power. During the last session of

•Congress probably

into

Highway which has
been built in large part with
ap¬
propriated funds.
A further basis for action
by
Congress on this project is: fur¬
nished by the previous treaties to

con¬

There

obviously certain classes
■

enter

American

by the Court.
may

Waterway

Similarly there is a
long record of Congressional ac¬

agreement-

cluded in this manner.

with

way
between
and Alaska.

It is not claimed that any for¬

eign

survey and construction of

has

agreement

President

agreement

legislation

powers,

the

The validity of agree¬
ments with foreign countries has
been frequently passed
never

war

long record of legislative
action by Congress, such as the
Act
of August
1935 authorizing

the Supreme Court and

Detroit. The Alas¬

under the President's

by the
legislative

upon

near

Highway, although finally built

had

into

with

connecting chan¬
; Huron:
and

between ;■ Lake

Lake Erie
ka

rela¬

tions of the United States have
since the early
days of the Re¬
public been concluded through
executive

even

$30,000,000 in

some

improving .the
nels

agreements would
ap¬
pear to establish that matters of
to

System,

to St.

(Continued from first
nage)

Legislation of 1939 authorized the
*

These

importance

Lakes

the expense of the United States.

the

■■■"■"

Great

though work has been required to
D.e done in Canadian territory at

for its final approval.

Impdrtance

Objections

•

the

legislative

I14i

now.

These

(Continued

ships

on page

will

1142)

very
:

yHft

1142

which the small non-integrated
steel maker uses as raw material
the. solute dependence upon our rail- for turning out finished steel
and roads in time of national emerproducts.
the Hudson River..
Experts tell gency, we must maintain them,
If the advance on semi-finished
either through profitable opera¬
us that
the LST type of landing
tions or by means of government feteel were to be too great in rela¬
.craft will take on and deliver
tion to the advance on finished
subsidy.
If the cream of the
cargo,
including .truck trailers,
steel products, the nonintegrated
summer's traffic is taken from

(Continued from page

readily navigate the waters of
Great Lakes, the Barge Canal

without the convenience
port facilities. This

of docks and

of ship will reactivate our
canal
system; and
increase its

■type

carrying capacity tremendously.
Amphibious craft, we are told,
will save time and costs where

and long-dis¬
under
present-day conditions.
;. .«v
Proposals have already been
made by an Albany transporta¬
tion company for the purchase of
surplus ships of these types. The
Ford
Motor
Corporation is already, equipped with cargo ear *
riers
capable of navigating the
Lakes, the canals and the Atlantic
Seaboard.
Engineers employed in
•the designing of small ships tell
-us that we
are on the threshold
of the greatest advance in this

bridges and ferries
tance
;:

required

are

runs

maker would

Lawrence, they

would be

not

prove

threatening

compensating
Existing Transportation Capacity prophesies of the enthusiastic ad¬
With all these

does.

The

operating

down

until final steel price an¬
are made and until

nouncements

some assurance

is given that those

companies outside of the basic
clude
the
building of a great steel industry will be given speedy
industrial empire along the banks consideration by the OPA.

$ rail, air, land and water transOne thing seemed certain the
of the St. Lawrence, might be
portation we will double our
; transportation
carrying capacity considered, if it were not for the past week unless some form of
within the next few years.
With fact that the project will be government priority control is in¬
stituted (and it can only be con¬
the
coming
of this intensified closed down for five months of
an
outside
possibility)
the year, that we already have a sidered
competition, with bigger power
surplus
of
shipping
and that most steel mills will be faced with
Y units and lighter though stronger
the necessity of sharply reducing
equipment,
transportation costs science and engineering are about
future customer tonnage quotas.
will come down and all the traf¬ to give us new materials and new
Already behind schedule, a month
fic from the Great Lakes area will equipment that will modify the
There may or more on some products before
ibe carried to the sea, most of it practices of the past.
the strike, and with a month's pro¬
to the Port of New York, more dome a time in the future when
duction lost, during the strike and
speedily, more economically, than •engineering experts will be able the
possibility of losing more time
ever before.
It will likewise be to justify the seaway, but at this
as mills resume production, the
•carried without that seasonal in¬ critical juncture of our history,
"Iron Age" adds, some firm may
terruption that will close the St. in these hopeful days of recon¬ have to set aside a full calendar
Lawrence solidly for five months struction, with new methods, new
quarter in which to catch up.
in
every
year.
, When
winter plans, new systems to promote
Philip Murray has definitely
and apply, I cannot give my sup¬
comes and we lay up part of our
stated that the union "has •re-eminland fleet and use the rest per¬ port to the seaway proposal in
phasized its agreement with the
haps in the Hudson, in the Sound, pending measure.
objective of increased productiviand in the coastwise trade, our
tyy. He also says that since the
rail, air, and highway systems,
Anglo-Swiss Credit Accord contracts run for a full year, unin¬
financially sound and with mod¬
Announcement that a payments terrupted steel production will be
ern
equipment, will carry the
possible.
winter's traffic from
the West agreement between Great Britain
Because of the confusion and
and
Switzerland, negotiated in
into the great Port of New York
the inability of some firms to de¬
Berne, has been referred to the
:
without difficulty.
■

•

approval termine how long it will take to
There are, ther efore, two
get into steel production, steel in¬
was made on. Feb. 16 by the Fori
thoughts that I would like to
eign Office at London, according got output the past week was ten¬
leave with you.
One is the questo a wireless London message to tatively estimated at 25% of rated
"tion of the character and the na¬
the New York
"Times" which capacity, up 19 & points from the
ture of the competition the seaway
previous week's rate. Despite the
went on to say:
will give to these existing systems
The agreement will establish pessimism- of steel producers in
"that now carry the traffic.
The
conditions for payments between many areas concerning the return
other is this—is it necessary for
to pre-strike operating rates, re¬
Switzerland and the sterling area.
ns, under present-day bohditions,
covery likely will be speedy. Ma¬
It
is believed
here
that the jor drawback to a most rapid re¬
"to bring in that outside competi¬
tion or would it be better for us
agreement also contains mutual turn in some areas is the shortage
to give full play and encourage¬
of
maintenance men, especially
grants of credit of £5,000,000 (ap¬
ment to vast expansion and im¬
bricklayers.
proximately $20^000,000) and pos¬
The American Iron and Steel
provement in the systems that
two

now

serve

our

credit

The

Federal

Government

Swiss

for

additional

franc

equivalent to

£ 10,000,000

$40,000,000)

(approximately

Position of Railways

Governments

community and sibly

State.

our

has Switzerland to Britain.

It is probable, however, that
already authorized the expendi¬
ture of billions of our taxpayers'
this £ 10,000,000 credit, if granted,
dollars for improvements in our
will not appear in the .agreement
airways, our highways and our
but will
be a separate* secret
waterways—all of which will not
only add immensely to our traf¬ grant.
fic-carrying capacity, but will
The British have been extreme¬
likewise present a problem for
ly anxious to reach an under¬
Our own

railroads to meet.

During the war, great reliance
placed upon the railroads of
"the country and they carried to
was

taxes, or final income

1946, were less than

freight

and

January, 1945, by 19!l%, while
estimated passenger revenues de¬
creased 2.1%.
^

Government's

an¬

plan to sell about 800,000
March at a price

bales of cotton in

■considerably below the prevailing
market.
Sales

under

;

and allocations of cotton

Government

control were

Paperboard Produc¬ reported at 803,000 bales during
tion— Paper
production in the the month of January. In the week
United States for the week ending ended Feb. 9, registrations under
Feb. 16 was 95% of mill capacity, the
export sales program amount¬
against 99.7% iiv the preceding ed to 39,955 bales, bringing the to¬
week and 91% in the like 1945 tal to date to 291,761 bales. Cotton
week, according to the American goods producers, awaiting OPA
Paper & Pulp Association. Paper- price action, have virtually with¬
board output for the current week drawn cotton gray cloth from the
was 94%, compared with 97%
in market.
1
the preceding week and 93% in
In the Boston market, domestic
Paper and

the like 1945 week.

Lower—Con¬
tinuing to decline for the third
consecutive week, commercial and
industrial failures in the week
ending Feb. 21 were at the lowest
level in more than a month. Dun
& Bradstreet, Inc., reports 18 con¬
cerns failing as compared with 25
in the previous week and 14 in
the corresponding week of 1945.
Despite the decline failures con¬
tinued for the sixth straight week
to exceed those occurring in the
Business Failures

week a year ago.

same

wools

continued

but there

slow

last week

appeared to be more in¬

quiries in anticipation of shortages
in foreign grades.
Fine foreign
wools continued in deipand with

trading irregular que td spotty
supply conditions. Offerings from
South Africa improved during the
week resulting in.increased pur¬
chasing, but there were continued
delays reported in allocations on
orders placed in Australia. Strike
conditions in the New England
area were
said to be hampering
the movement of wool to mills.

week's decrease
failures involving
liabilities of $5,000 or more. They

Imports of. apparel wools, scoured
basis, for October and the first ten

last week to 13

by the Exchange Service Bureau,
reached all-time highs of 62,475,-

Most

came

the

large

dropped from 19
in the week just
twice as high as
ble week of 1945

ended, but were
in the compara¬
when there were

months of last year, as

000

and

382,069,000

estimated

pounds,

re¬

spectively. In men's wear piece
only 6. On the other hand, con¬ goods markets, the resumption <odL
cerns
failing with small-losses Saturday work by some mills will
varied only slightly, numbering 5 be helpful in efforts to prevent
against 6 a week ago and 8 last further lag in shipments.

Wholesale Food Price
Index
manufacturing and commer¬ Unchanged—Negligible changes in
cial
service,
failures
fell off commodity prices were counter¬
Construction balanced, leaving the wholesale
Institute announced on Tuesday sharply this week.
was
the only trade or industry food price index, compiled by Dun
of this week the operating rate of!
& Bradstreet, Inc., for Feb. 19, at
steel companies having 94% of the group to show an increase—con-;
cerns failing in this line were up
last week's level of $4.13. Com¬
steel capacity of the industry will;
from none in the previous week to pared with the $4.10 for last year,
be 58:6% of capacity for the week!
5 in the week just ended.
Com¬ this marks a fractional gain of
beginning Feb. 25, compared with!
with the corresponding 0.7%, whereas it is 2.5% over the
15.2% one week ago, 5.9% one; pared
week of 1945, on the other hand,; 1944 figure of $4.03.
Gains in
month ago and 94.6% one year j
failures were more numerous in prices were recorded for rye and
ago. This represents an increase
all-trade and industry groups ex¬ eggs, while declines occurred in
of 43.4 points or 285.4% over that i
cept retailing. ;
potatoes, steers, shbep; and lambs.
of the previous week.
The index represents the sum
Three Canadian failures were
year.

operating rate is!
to 1,032,806 tons of j reported as compared with none
in the previous week and in the
steel ingots and castings and com-;
standing with the Swiss because
corresponding week of 1945.
pares with 268,000 tons one week
they have been under the neces¬ ago, 104,400 tons one months; ago j
Wholesale Commodity Trice In-;
Irregular movements dur-!
sity of paying gold for Swiss and 1*732,700 toils one year ago. j dcx
francs needed for expenditures in
Electric Production—The Edi- \ ing the week left the daily whole¬
sale commodity price index, com¬
son Electric Institute reports
This

week's

equivalent

—

total of the jprice per
foods in general use.

pound of :S1

Wholesale and Retail Trade-^-Rer
for the country at

tail sales volume

large

continued to rise

week and was

the

nounced

revenues

Estimated

January,

expenses,

results.

during the

well above that of
the corresponding week of a year
that;
that "hard money" country.
The
the output of electricity increased; piled by Dun & Bradstreet, Inc., ago, reports Dun & Bradstreet,
Swiss have been unwilling to ac¬
Inc., in its weekly survey of trade.
to 3,948,620,000 kwh. in the week¬ at 184.12 on Feb. 19, after touching
roads, we are told by our military
Limited selections presented one
a new post-war high of 184.70 last
leaders, we could not have won cept sterling unless it was gold ended Feb. 16, 1946, from 3,983,-;
Thursday.
The
current figure of the principal obstacles to shop¬
convertible.
493,000 kwh. in the preceding;
the war.
compares with 184.52 a week ago, pers. Staples continued to be in
week. Output for the week ended
The chief British pressure on
;
The strain - ; under which the
high demand; buying was brisk in
Feb. 16, 1946, however, was 11:7% j and shows a rise of 4.5% over the
railroads labored left their equip¬ the Swiss to obtain the loosening
foods,; Spring apparel, and home
176.11 recorded a year ago.
below that for the corresponding
ment and the roadbeds in need
of Swiss terms has been the refus¬ weekly period one year ago.
;!
Trading
in
grains
declined furnishings.
of
repairs.
They must rebuild
The supply of meat and poultry
al to authorize British tourists to
Consolidated Edison Co. of New sharply last week, partly due to
their plant at great expense to
became more plentiful and that of
York reports System
output of the holiday. Rye continued to lead
them.
While doing so they must obtain Swiss francs.
fresh vegetables generally was ad¬
180.500,000
kwh. in ; the week in sales activity. Inflation possi¬
continue to
pay
huge sums in
The agreement, in general, fol-:
of equate. Citrus fruits were in am¬
ended Feb17, 1946, comparing bilities and the anticipation
taxes to our State, our cities, and
lows the pattern of Anglo-Belgian with 184,200,000 kwh. for the cor¬ higher ceiling prices were strong ple supply as the season neared its
to
every
tiny hamlet through
bullish influences. The fact that peak. Other fruits were generally
and Anglo-Swedish payments ac¬ responding week of 1945, or a
which they run.
limited with the supply of apples
•• .;v'r 0^
■
decrease of 2.0%. Local distribu- most future grain contracts are
I
'
;With the realization of our ab- cords.
ports Of embarkation our
fighting men, their equipment and
their material.
Without the rail¬
the

amounted to receipts

sim-

which in¬

vocates of the seaway,

improvements in

wheat

electricity

Doubled

be in such a squeeze

tion

through the St.
that the general price increase
will be left with
would place him in a worse posi¬
the expensive traffic of the win¬
tion than he was before the strike
ter season when the St. Lawrence
because of the 18 ^c an hour wage
is
frozen
over.
If the tramp
increase. While the steel industry
steamers of other nations are to
and the OPA finally reached an
bring into our Great Lakes ports,
agreement on the amount of the period of 1944, a decrease of 67,183 ings.
British and Russian coal as bal¬
Under persistent demand cottori
average increase in. steel prices ears, or 8.7%, is shown.
values
continued to
gain last
last, then no longer will rail¬ there was at mid-week no evi¬
Railroad Earnings in Januaryroads haul the profitable train- dence that the allocation of the
week, reaching new high levels
Based on advance reports from
for about 22 years. Bolstering in¬
loads of coal from bur mines to
88 class I railroads, whose reve¬
fluences
included the generally
Great Lakes ports.
If the seaway I ?? a ton. advance
a
nues represent 80.8% of total op¬
current inflationary trends, expec¬
carries the
remarkable tonnago^ The OPA is heading into one of
T,
nD; . ,
erating revenues, the Association
tations Of improvement in domes*
its
advocates
prophesy for it, its most active periods since prac¬
of American Railroads today esti¬
tic consumption and exports, the
then the railroads along with the tically all steel processors and
mated that railroad operating rev¬
gradual settling of strikes, and the
waterways and the highways of fabricators will be forced to ask enues in
January, 1946, decreased
President's announcement of a
our
State will suffer from this for price relief in order to take
15.3% under the same month of
new
competition.
If the high care of increased steel prices and 1945. This estimate, it was pointed new wage-price policy. There was
■a feeling of caution at times, how¬
standards that characterize em¬ increase^ wages, the magazine
out, covers only operating reve¬
ployment on our systems were notes; Many of these .plants, it is nues and does not touch upon the ever, due to the possibility of a
ceiling being placed on raw cotton
not
at
stake, the competition feared, may have to remain shut¬ trends
in ?•

them and routed

would

of transportation.

field

Reports from the ~ new* winter
crop were spotty.
Wheat
continued below trade
178,200,000 kwh., compared witn expectations. Shipments increased
176,100,000 kwh. for the corre¬ somewhat but there was still a
sponding week of last year, an shortage of box cars despite strenr
increase of 1.2%.
uous efforts of the railroads to re¬
Railroad
Freight Loadings — lieve the* situation. Demand for
white flour increased sharply hut
Carloadings of revenue freight for
the week ended Feb. 16, 1946, to¬ hew business came to a practical
taled 707,054 cars, the Association halt as millers and bakers studied
of American Railroads announced. the new drastic regulations in¬
This was a decrease of 6,186 cars creasing the extraction of flour
(or 0.9%) below the preceding from a bushel of wheat, which
week and 77,649 cars, or 9.9 % be¬ will become effective on March %
low the corresponding week
of Hog receipts remained heavy but
1945.
Compared with the similar good demand held prices at ceil¬
;

(Continued from page 1135)

with or

currently selling at ceiling limits
acted as a distinct curb to sales. *";

The State ef Trade

Objections to SL Lawrence Seaway
1141)
(

Tbursday^FeibruaTy 28, 1946

WOMMERClAb & FINANCIAL KHRQNICL®

....

A. A■

.Volume

Number 4468

163

THE COMMERCIAL & FINANCIAL
CHRONICLE

Butter, sugar, atid onions

scarce.

continued to be the foremost items
among current shortages in the
food line.
-The demand for spring suits and

COats

;

week

this
while sales of spring furs

few.

were

ning

increased

generallys

Interest in taffeta eve¬

wear was sustained at a

level.

The

Winter

demand

high

for women's

apparel

appeared to be
diminishing as interest in spring

Wholesale Prices Rose 0.1 % in Week
Ended February 16, Labor Bep'l

Federal Reserve December Business Indexes

sories

be acute.

and

Most

costume

acces¬

jewelry

sold

well;

metal compacts have ap¬
peared in large quantity and are

Jan.

its

—

monthly

industrial

System issued

production,

factory

time, the Board made

same

available

its customary summary bf business conditions.
The in¬
dexes for December, together with comparison for a month and a

jrear

follow:

ago

BUSINESS INDEXES

average100

Average market prices for farm"

1923-25

average

1935-39

5.0%

for factory employment and payrolls;
= 100 for construction contracts;

average = 100

for

all

other

Adjusted for Seasonal
Z>v.r.v .Variation

vege¬
tables and eggs during the week more than
offset fractional declines
for grains and poultry.
Quotations for eggs advanced
following an¬
nouncement of governmental price
support policies.
Prices for

Annual

Adjustment

-—1945—-

1944
Dec.

Nov.

series
Without Seasonal

Dec.

-1945Dec.

1944

Nov,

indexes','

Dec.

1945

1944

industrial production-

ap¬

ples moved

indexes

employment and payrolls, etc. ; At the

1939

Farm Products and Foods

shortages that prevailed in men's products rose 0.5% to a level L3% above a month
ago and
clothing and women's hosiery con¬ above mid-February of last year. Higher prices for
fruits and
tinued to

The Board of Governors of the Federal Reserve

Reports

"Average primary market prices rose slightly
(0.1%) during the
week ended Feb. 16, 1946, largely as the result of
higher prices for
agricultural commodities," the Bureau of Labor
Statistics, U. S.
Department of Labor reported on Feb. 21. At 107.2% of the
1926
average, a new post-War high, the index was 0.5% above
mid-January
1946, and 2.1^ above the corresponding week of
1945, said the
Bureau, which further stated:

and summer clothes mounted. The

1143

*164

168

232

*162

167

230

*203

•

235

seasonally, and higher prices for oranges reflected
Manufactures—*
reported to be in great demand.
the predominance of better quality fruit on the
|
market.
Lemons de¬
*170
173
Total..*——
249
*168
174
'■ 248
*214
252
Medium and low-priced furni¬ clined
seasonally, and old crop potatoes were quoted lower in
*186
192
343
*185
192
342
*274
353
eastern,
ture this week was offered more markets..
Nondurable*156 "
173
Cotton quotations rose to a 20 year
158
*154 v;; 158
171
171
*166
high'on speculative
*134
137
readily than during the previous buying. Warehouse
*127
137
133
*137
140
131
prices for tobacco moved down, with
Week with the
sharply Construction
supply of living- lower quotations for
v?
conducts, value—
burley reflecting a large crop. The
r6om suites COntihumg very lim¬
generally 4. Total-*—
*
*96
51
40
*85
t
W'M 41
lower spot prices for grains were a reflection of
weakness in futures
t ^
ited. Despite limited
♦42
j Residential-*.--——
14 ;
12
•40
t
M t u ,16
selections, markets following the President's announcement of
r*
*140
81
*121
'
t
63
AU.pther~.---rU._-———t
.61
higher flour ex¬
drapery and curtain departments traction
requirements, to provide more wheat for foreign relief.
factory employment-*
reported that sales volume Was
Poultry prices were down with large supplies and weak demand fol¬
Totai—<.~———— *120.8 121.2 163.0 ♦121.1 121.6
163.3 *143.3
169.1
holding
at
high
levels.
Piece
Durable goods*133.8
136.4
219.7 *133.8
lowing the holiday. Sheep quotations moved up
136.5
219.7 *181.5
231.4
seasonally, with the
goods, sheets, and towels remained rise for
109.2
*110.6
118.3 *111.2
109.8
119.9
118.9 *113.2
lambs limited by payment of increased
subsidies to producers.
in demand as
consumers sought
The higher prices for fruits and
*
vegetables and eggs were largely factory payrolls—
staple
household
items.
Some
Total——
'
212.8
336.8
339.1
t
t t
responsible for the advance of 0.8% in the group index for
new
foods.
In
housewares and appliances
Durable goods-^—~*.~~.
232.4
t
474.2
t
463.6
addition, quotations for raw sugar moved up about 12% under
Nondurable goods
193.6
212.8
206.9
t
t.
appeared in stores in small quan¬
higher
133
ceilings allowed by OPA. The prfce advance for raw sugar will not Freight carloadings——
127
137
119
136 0
135
128
140
tities. China and
glass stocks were be
Department store sales, value—
*"215
227
196
*350
274
319
►207
186
reflected in refined sugar prices until the
higher priced raw sugar Department store stocks, value.
reported to be low in many areas.
150
136
t
127
153
173
t
U'Vt
is refined and sold.
Prices for canned baked beans rose
Retail volume for the
fractionally
country with the introduction of
^Preliminary. fData not yet available.
quotations on a smaller size can resulting in
was estimated at from
10 to 14%
a higher price per ounce for baked
Note—Production, carloadlng, and department store sales indexes based on daily
above the
beans, under existing OPA ceil¬
corresponding week a
Werages.
To convert durable manufactures, nondurable manufactures, and minerals
ings.
Prices for lower grades of wheat flour moved to
year ago. Regional
ceiling with indexes to points in total index, shown in Federal1 Reserve Chart Book, multiply
percentage in¬
heavy demand following the President's announcement of restrictions durable by .379, nondurable
creases were: New
by .469, and minerals by .152,.
;*
England 8 to on
'
■.. ;•:
white flour.
12, East 14 to *17, Midwest 5 to
v
Construction contract indexes based on 3-month moving averages, centered at second
8,
Other Commodities.
Northwest 9 to 13, South 10 to
month, of F. W. Dodge data for 37 Eastern States.
There were few price
To convert
indexes to value
14,
changes for non- figures, shown in the Federal Reserve Chart
Book, multiply total by $410,269,000, resi¬
Southwest 7 to 11, and Pacific agricultural commodities during the week.
Prices for brick, cement
dential by, $184,137,000, and ah other by $226,132,000.
and Southern pine lumber
Coast 11 to 15.
again rose fractionally as additional pro¬
Employment index, without seasonal adjustment, and payrolls index compiled
-The volume of business in
ducers moved quotations to
the
higher ceilings allowed by OPA in pre¬
by Bureau of Labor Statistics.
wholesale markets this week con¬ ceding months.
Quotations for boxboard advanced under
ceiling
tinued close to last week's
Some types of leathers moved
INDUSTRIAL PRODUCTION
high adjustments previously allowed.
up
figure and was moderately above fractionally with ceiling adjustments granted
(1935-39 average «100)
by OPA to individual
up

;■

■

'•

.—————

•

———

—-

■

that for the

year ago.

corresponding week

The

steady although wholesale
trading in general was spotty. De¬
liveries

slow and inventories
remained limited in most lines.
;
were

Department store sales on a
country-wide basis, as taken from
the Federal Reserve Board's index
; for the week ended Feb. 16, 1946,
increased by 19% above the same
period of last year. In the past
week sales in the
city of Philadel¬

phia

manufacturers.

Trading in staple goods

was

reduced

were

because

Adjusted for Seasonal

Labor

Department included the following notation in its

report:

compared

monthly index.

FOR

Feb.

closed

owing to a power
This compared with an
increase of 25% in the
preceding
week. For the four weeks ended
!, Feb. 16, 1946, sales increased by
20% and for the year to date
by
16%.
•
v • /
The dollar volume of retail sales

shortage.

in New York

the previous week
showed heavy increases with esti¬

mates placing the gain for
depari-

iAent

stores at about 35%

"•the- similar week of

above

1B45.

(1926

the

case

year

tending to increase the

thus

ago,

shopping

normal

All

and

for

u n

markets and proved to be
ture.

'•■

Supply

conditions

and

retail

feawere

remained

products
and lighting

•

106.8

106.7

105.0

130.4

129.7

129.3

127.2

According to the Federal Re-

serve

Bank's

store

sales

index,

department

+ 0.5

+ 1.3

+ 3.0

+ 0.8

+ 0.7-

+ 3.1

+ 0.6

+1.8

101.1

99.1

+ 2.0

85.8

85.4

85.5

83.8

increased

18%

s?ime

period last

year.

pared

with

104.3

above
This

increase

the

com¬

36%

(Revised figure) in the preceding
week. For the four weeks ended
Feb. 16, 1946, sales rose by 27%
and for the year to

date.by 22<&.'

116.9

+ 0.1

*190

183

175

*177

183

307

*215

215

307

*269

302

152

125

133

146

125

133

225

215

..t

152

148

146

137

145

225

215

*217

196

152

+:• 't

149

*88

+ 1.4

Goat and kid leathers—

+ 0.2

+ 2.7

Sheep and lamb leathers—

—0.2

+ 1.1

118.7

116.2

+ 0.3

+ 0.8

+ 3.0

97.5

'96.9

94.8

Manufactured products

+ 1.0

+ 1.7

+ 3.9

103.2

102;9

All commodities other than
farm
products —
All commodities other than
farm

102.9

101.6

+ 0.3

+1,6

102.0

101.9

101.7

100.1

+ 0.1

+ 0.3

+1.9

Shoes

140

,120

150

148

146

120

113

*120

151

150

111

*142

*146

113

119

*56

155

*149

113

*149

—

Manufactured food products—
Wheat flour
u—

;

■

154

151

114
152

*134

133

123

*133

134

122

*132

118

157

155

158

*184

171

184

•143

177

Other manufactured foods—

* 153

151

159

*150

158

155

*154

153

Processed fruits & vegetables.

*123

127

•146

*96

117

114

*131

134

H2
87

154

131

104

157

121

136

125

110

139

194

155

128

198

142

170

152

108

86
139

Meatpacking

—

•

101.1

100.9

100,8

99.3

Tobacco products

■

+0.3 '

Cigars
Cigarettes—

+1.8

Other tobacco

PERCENTAGE CHANGES IN StTBGROUP INDEXES
FROM
FEB. 9,

1946 to FEB. 16,

Fruits

and vegetables^
Other foods

2.5

1,8

—

1.3

—

'0.3

142

135"

142

134

*139

158

145

143

158

145

154

Printing and publishing——.
Newsprint consumption

* 112
92

114

104

*114

118

106

*108

101

104

•85

Petroleum and coal products—

;/•'

Paper and pulp
^

;

tile

;

0.3

——*- 0.2

Leather

Cement;

0.2

268

247

283

*152

141

*144

*152

141

165

132

128

123

126

167

*157

Paperboard
Newsprint production

Petroleum refining
Gasoline

0.1

—

*144

Fuel oil
—

0.6

Grains

": Meats

Lubricating oil-,

'• 0.4

————

0.2

Snyder, author and nation¬

ally

known economist, died at
Santa Barbara* Gal. on Feb. 16 at
the age of 76 years.
He had been ill for three
years.

Barbara

Feb. 16 published in the New York
"Sun" stated:

From 1920 to

also organized, a research
depart¬
ment. He had lived in semi-retire¬

coming here tot his

three years ago.
•
Mr. Snyder's best known book
was entitled
"Capitalism and the
some

in 1940. Other
works included "New
Conceptions
in
Science," "The New World Ma-

Chine," "American Railways as
Investments,"
"Business
Cycles
and Business Measurements." '
v

born

was

Cedar

Falls,

Iowa, and educated at Iowa State

University.

Later

entered

newspaper work, becoming
editorial writer for the

Coke„_

"Washing¬

Association and a fellow of the
American
Association
for
the
Advancement of Science, and the
American Academy of Arts and
Letters.
In 1934 he Was elected
of

and

the

sbcial

economic

the American Association for. the

Advancement of Science.

147

167

••:

."-t "

4, 4
•

147

258

*146

135
163

■k

172

144

163

144.

163

*152

165

267

296

*269

267 ;

296

*319

433

*232

t Rayon

229

312

*233

230

313

*284

324

*244

Minerals—>

*244

241

369

396

*373

369

396

*391

*197

—~

241

*373

Industrial chemicals..

Rubber——.
•

1334

119

•

153

*269

190

239

*197

190

238

*214

242

*240

236

404

234

Fuels

141

*137

142

141

*142

159

138

v142

159

138

*144

*94

112

10$

112

109

*107

♦146

*137

Anthracite

—

142

145

*143
;

156

126

petroleum—*140

*139

146

140

*139

146

Metals—
t
'^'Iron ore——~^-—

*108

111

*79

113

108

;61

206

133

148

"Crude

—

^preliminary or estimated.

143

tData not yet available.

FREIGHT CARLOADINGS

(1935-39 average

100)

Coal

133

148

127

Coke

164

167

166

153

167

134

Livestock.

140

145

128

Forest products

106

110

135

108

117

134

133

<+; 114

130

133

151

123

139

Grain.

...

service

section

—

Chemicals-

Mr. Snyder was a formbr
presi¬
dent of the American Statistical

Chairman

Byproduct
Beehive

Bituminous coal

ton Post" and a financial writer
for the New York "Tribune."

science

t
—

—

Kerosene

Death of Carl Snyder

143
86

Brick: and

products

Paper and products.—*—

1946

——

:•

Creator," published

t;:

118.9

Santa

Calf and kip.leathers

97.5

from

+ 2.3

119.3

health

171

215

•128

98.5

sinfce

181

*215

127

119.7

ment

85
123

130°

+ 0.6

•95
•118

Tanning

+ 1.4

Carl

82
120

+ 0.2

-''0.

*50

122
122

127

+ 0.4

t
*128

125

'■

90
116

+ 0.1

113

Cattle hide leathers

94.9

•

115

*117 :

94.1

■

+ 161

*112

106.2

Livestock and poultry—;

164

*156

113

95.0

■

144

*163

*131

114

96.1

products

•133

159

142

163

117

106.6

farm

142

123
158

247

125

113

96.0

Lumber

*98

95.0

foods

*110

106.8

products and

•176 M

113

114

95.3

articles

186

;.'-":8T'!*
123 I

115

106.8

materials—

148

116

95.4

Semi-manufactured

231

259

109

95.9

Other

*74

products.

+ 0.4

—0.1

*179

*210

106.8

Miscellaneous commodities

1965 he was gen¬
eral statistician for the New
York

1946,
:

105,4

235

229

96.0

119.8

135

*94

111

Leather products

+ 0.1

119.9

Raw

122

83+

Wool textiles.

104.8

105.8

521

*185
Abrasive & asbestos

118.0

119.9

•719

118

107.3

105.8

439

*487

131

Textiles and products
Cotton consumption—

+2.1

186

147.

———

119.4

+ 0.2

*344

709

*161
3

glass

106.7

Federal Reserve Bank, where he

New i York

Plate

119.8

**-0.1

434

431

159

—

85.7
105.8

—_

materials

!—

ci Cement

1945

+0.5

456

231

;

*92
-

*'85

products—

Lumber—.

107.1

City

+0.1

235
229

products

Smelting and refining—,——

Lumber and

120.0

for the weekly period to Feb.
16,

1946

135
159

306

250

294

■

;

120.0

Advices

steady.
.<

tfonferrous metals and

01'"'

tight, while food voiume at both
-wholesale

*215

120.1

products

Chemicals and allied products—
Housefurnishings goods

great pressure in local wholesale
>

107.1

continued

*234

7G9

.w,,
»

1946

186

431

108.0

leather

Metal and metal products
Building materials-.:

'•Thursday.

2-17
1945

1310

Textile
Fuel

1-19
1946

167

250

Rayon deliveries—

Farm products
Foods
i
Hides

2-2

1946

181

*215

;

227

160

Transportation equipment.

199

206

156

456

*92

*176
200

306

———

183

190

.215

231

Automobiles—

1944

198'
:

158

178

294

1945

Dec.

167
'

indexes

173

*234

Feb. 16,1946 from2-9
1-19
,2-17

2-9
1946

107.2

commodities

Deliveries

Electric

Stone, clay and glass products.

181

NOV.

Annual

1944

•.<.

preliminary)

2-16

the advance owing to concentra¬
tion

1946!

160

Dec.
*164

Machinery—

1946

Commodity group—

last

amount of

16,

215

156

——.

Furniture

FEB.

178

Dec.

Percentage changeito j,,

Thursday as

ENDED

100)

Increases

week; Instead of

/Was

Friday

lIndexes for the last eight weeks are

worthy to note that Washington's

| Birthday fell

WEEK

190

173

•—

1945

198

158

Open hearth

j on Feb. 12 to avoid a fuel short¬
age, and those in Pittsburgh were
on

$ Steel

for Jan. 19, 1946 and Feb.
16, 1945, and (2) percentage changes in
subgroup indexes from Feb. 9, 1946 to Feb. 16, 1946.
PRICES

167

Pig iron

following tables show (1) indexes for the past three weeks,

WHOLESALE

NOV,

*164

Iron and steel-

the

The

curtailment in public
transporta¬
service on Feb. 11 and
12,
those in the city of New
York
j were reduced because of the clos¬
ing of all business establishments

were

directly with

3944

Dec.

The Bureau of Labor Statistics wholesale
price data, for the most
part, represent prices in primary markets.
In general, the prices
are those
charged by manufacturers or producers or are those
pre¬
vailing on commodity exchanges. The weekly index is calculated
from one-day-a-week
prices.
It is designed as an indicator of weekto-week changes and should not be

tion

reduced because stores

1945—

.;/•

Without Seasonal
Adjustment

Variation

Miscellaneous-,———
Merchandise, l.c.l
N0te—To

convert

L.
coal

and

172
■;

miscellaneous indexes

164

135

127

167

144

183

134

143

175

172

185

126

151

139

124

129

143

120
41
•

142

169

':
.

180

142

147

f. 67

points In total Index, shows
In the Federal Reserve Chart
Book, multiply coal by .213 and miscellaneous by .548.,

;

THE COMMERCIAL & FINANCIAL

1144

Thursday* February 28,

CHRONICLE?

194$

!■■■ 1

Weekly Coal and Coke Production Statistics; Moody's Bond Prices and Bond Yield Averages Reports Applications
/Moody's computed bond prices and bond -"yield averages are For
The.total production of soft coal in the week ended Feb, 16, 1946, ]
Dwelling Units
given in the following table.
'

estimated ;by the United States Bureau of Mines* amounted to "12,-

l"'

2.6%, from the preced¬

180,000 net tons, a decrease of 320i,000 tons, or

;
U.S.

1946—

From

Avge.

Corporate by Ratings*

Daily;
Averages, X,

Govt.
Bonds

Corpo- .;

amounted to 82,879,000 net

rate*

Aaa

with the

Feb.

125.92

120.22

26*——

23—Stock

coke

(In

Week Ended-

Feb. 16,"
Bituminous coal fc

1946

12,180,000

119.00

116.41

120.22

121.88

119.20

114.27

116.61

120.22

122.29

121.88

119.20

114.37

116.61 "120.22

122.29

126.12

119.61

123.56

121.88

119.20

114.27

116.61

120.22

•

122.29

126.14
119.61
126,14 ; 119.61

123.56
123.56

121.88

119.20

114.27

116.61

120.02

122.29

121.88

119.20

114.27

116.80

120.02

122.29

ceived

120.02

122.29

aimed
of

15—.,—*
14
-X*

2,083,000

1,931,000

ESTIMATED

121.88

119.00

114.27

116.61

120.02

122.29

123.34

121.88

119.00

114.27

116.41

120.02

122.29

erans,

126.15

119.61

123.56

121.67

119 20

114.27

116.61

120.02

122.29

15. The FHA further

T9^5h

Penn. Anthracite—

tCommercial produc.
Beehive coke"

•

1945

ESTIMATED WEEKLY
'
' ! - 1
;
.

J 946

Missouri—i

Kentucky—Eastern-^^>r—^_
Kentucky—Western—
Maryland
-—
Michigan
*x——

■

;

Ucah

—

■

3,000;
99,000

■

•

Middle Atlantic——

2,573,000

"■

4.8

3.8

19.4

12.7

13.9

;:f J4.7

53.0

<V r

2.3

Nov.

Nov.
Nov.

FOR

under 1944
—10.5

—

15_r—

•4.154,061

Dec.

22_-_.—

4.239,376

3,758,942

4,225,814

1929

Jan;19__

4,163,205
4.145,116

1945

4,427,281

2.70

2.94

2.83

2.64

2.5f

2.69

2.94

2,82

2.64

2.54

1.33

2.67

2.48

2.56

2.69

2.94

2.82

2.64

2.54

1.32

2.67

2.48

2.56

2.69

2.94

2.82

2.64

1.32

2.67

2.48

2.56

2.69

2.$4

2.82

2.65

2.54

2.65

2.54

4,614,334
4,588,214-

1.32

2.67

1.32

2.67
2.67

1.32

Stock

2.54

2.94

2.83

2.65

2.54

2.67

2.48

2.57

2.69

2.94

2.82

2.65

2.54

2.67

2.49

2.56

2.94

2.83

2 65

2.54

2.67

2.48

2.57

2.70

2.94

2.83

2.66

2.54

1.33

2.68

2 48

2.57

2.70:

2.96

2.84

2.66

2.54

2.49

2.58

2.71

2.97

^2:85

2.67

2.49.

2.58

2.71

2.98

2.85

2.68

2.58

2.71

2.98

X 2.86

2.68

1,860,021

1,414,710

1,637,683

1,619,265

1,542,000

1932

1929

1,602,482

1,733,810

1,598,201

1,736,721

1,588,967

2.71

2.98

2.86

2.68

2.54

2.70

2.99

2 87

2.68

2.55

2.61

2.72

3.01

2.89

2.71

2.56

1.31

2.70

18——

1.33

2.72

2.53

1.32

2.74

2.55

2.62

2.74

3.03

2.90

2.73

2.58

1.38

2.76

2.57:

2.66

2.77

3.04

2.92

2.76

2.61

19463111

1.40

2.77

2.58

2.66

2.78

3.05

2.93

2.76

2.62

I946*ri-X— u

1.31

2.67

2.55

2.69

2.94

2.81

2.64

'2.54

1.69

2.92

2.64

2.72

2.93

3.39

3.14

2.94

satisfactory.

He has urged FHA

field offices to exert every

1.81

3.11.X

2.74

2.84

3.11

3.73

3.49

2.98

effort

among-home builders to induce;
the
productidn; of " housing at
price levels as much below the
maximum as feasible;
present priority system is

The

designed

speed s. ijonstrpctioii

through
channelling xinto ^ the
hands of home buildersnthb heces-

2.68

2.84

High

i.,

2.48

scarce materials to produce
between
400,000
and; x 500,000

sary

moderate priced, houses
,I

1945.X

26,

in.1946.
*

'in""""

•-

Restrict Wheat Trades

Ago

Febn'20,- 1944-

ftilarrhese prices are computed from average yields on the basis of one "typical bond
0$/$$ C9upon, maturing in 25 years) and do not purport to show either the average
beye) ..or. the average movement of actual price quotations.
They merely serve to
"Mustrare in a more comprehensive way the relative levels and the relative movcmenl
b® YieRi; averages, the latter being the true picture of the bond market.

Following similar action by the
Minneapolis and Kansas City ex¬

changes; directors of the Chicago
Board of Trade; ordered on Fefcj.
19, according to special advices
'"•XNoiE— The list used in compiling the averages was given in the Nov. 22, 1945
from Chicago to the New York1
issue of the "Chronicle" on page 2508.
"Times", that trading in May
wheat contracts, effective Feb. 20,*
after the Potsdam conference that
be restricted to the liquidation of
this country would feed Europe's
outstanding contracts. Also effec¬
hungry to the extent of its ability tive Feb. 20, according to the ;
and addedr ;"*;
•
"Times", the board changed mar¬
"I should like to emphasize the
Expressing concern oyer v^at last sentence of_ that statement gin requirements, initial margins
to be 10 cents a bushel on wheat,
appeared
to
be a world-wide and request that you give the per¬
shortage of wheat and vitally sonal attention to this problem barley, corn and oats; 25 cents on
soy beans and 35 cents on rye..
needed supplies abroad. President
which the seriousness of the sit¬
The advices added: "Such margins
Truman on Jan. 25 proposed call¬
uation demands."
must be maintained on the follow¬
ing on the principal wheat-pro¬
The President followed this up ing bases: Oats, 8 cents a bushel;
ducing countries to" make up a
with the reminder that Director wheat, barley and corn, 10 cents;
5,000,000-ton shortage in ship¬
John W, Snyd€a^ of: the Office of soy beans, 16 cents; and rye, 25
ments to deficit areas during the
War Mobilizatiom and Reconver¬ cents.
first half of 1946, special Wash¬
sion, acting on his instructions,
"Speculators cannot take a de¬
ington advices to the New York
had set up. a Movement Coordinat¬
"Times" stated.
The Department
livery of cash wheat on May con-,
cf Agricul ture estimated on the ing Committee of representatives tracts in leading markets, accord¬
of the departments and agencies
same
date that stocks of wheat
ing to brokers who have studied,
named in the directive with the
the: Gbvernmeht;;wheat conserva-x
held in storage in all positions, on
and off farms on Jan. 1 were 689,- request that he be kept advised of tion program, and assert that the

Shortage

totaled 835,000,000 bush¬

disappearance of wheat since July
1 -had been relatively rapid, with
smaller stocks in the various stor¬
positions Jan.; 1 than in any
previous four years.
Government-owned
stocks
held
by

age

of the

000

1,717,315

totaled

about. 15,000,-

With

White House con¬
Secretary of State

added

Byrnes,

"Times"

advices: xThe

issued

taries of

was

directive

in
the
President

the

Secre¬

State, War, Navy, Agri¬
Labor, the, War Ship

11.9

4,523,763

1,588,853

1,728,208

1.578.817

1,726.161

culture and

Feb.

9__

3.£83.493

4,505,269

11.6

.4.532,730.

1,718,304

ping

Feb.

16—

3,"48.620

4.472,298

11.7

*4,511,562"

3,922,796

4.*7*M2

12.3"

1.512,158

1,699,250
1,70^,719

'4,464,686

1,538,452

1,702,570

-•-•

directive

of/Defense

i; i.

over

■„

■:

the
that

increasingly
the shortages of

become
over

has

control

ever

been

and feed manu¬
they are still uncer¬

Millers

taken.

facturers say

have

concerned

closest

gives
wheat

order

the President

tain about some

provisions of the

order."

yitally;needed supplies to liberat¬
ed countries.
I am particularly

Moody's Daily

alarmed at what now appears to
be
a • world-wide
shortage of
wheat. "I ain informed that many
of

the

possess

countries of

CommodityIndex

Europe how

Tuesday,

less wheat than is neces¬

21*—^—~~--Fridav, Feb. 22._x-r-;
Saturday, Feb. 23**--——x-v--

Thursdav, Feb,

though their bread ration is down
to

starvation level.

"In' view of this
Government

Mondav, Feb, 25„__*«_-—

situation, this

the

responsibility

**xxX—

Tuesday^ Feb.

recommending

Two

weeks

Month

that each of the supplying coun¬
tries x" accept ? its >
proportionate
share

Feb. 19, 1946;
Feb. '20————

Wednesday,

to maintain distribution, even

agq,

1.945

Feb.

11**-*—,

Jan. 26—'—*——
Feb. 24, 1945*-i;XcX-

High,

1,1 C Low,
f

ago,

Year

hndv the, meeting the urgent requirements
Transporta-| cf the liberated /countries on an
calling attention to his pledgeequitable basis.";
f//-- "-1
'' '
-''4Administrator

Director
tion

his

said:

sary

Following

12.2; 4,524,134

1.519.679

Credit Corpora¬

only

bushels.

4,576,713

4,444,939 ;

progress, and of any major dif¬
ficulties not readily adjustable.

Department said, that the

4.538,552

1,545,459

price distribution of the applica¬
tions throughout the country is r

2.54

2.58
2.59

•

Commissioner Foley said it still
was too early to; reach any defi* *
nite conclusion as to whether the *

2.54

2.69

4.034.363

2.65

2.50,.

3.982,775

4,472,110

2.82

1.32

2—

2.94

1.32
-

6———

Jan"26__

March

2.70

1.32

Feb.

Feb. 23„^

2.54

2.70

4,337,237

9.7;..'. 4,531,662-

2.65

2.56

8.2

4,539,083 *

2.82

2 49

4,612,994
4.295,010

1944

2.94

2.67

tion

4,567,859

2.94

2.69

Exchange Closed
r

1.32

—

the Commodities

9.8

2.69

2.56

2.49

1,840,863

—12.7

2.56

2.48

——'

2.54

2.81

2.55

2.48

14____X__

short

afterx;v
2.56
2.56

ference

2.64

2.49

1,806.225

under 1945

2.83

2.49

1,563,384
1,554,473

% Change
1946

2.94

2.67

1,518.922

1,818,169
1,718,002

3.865.362

2.94

2.70

2.67

—11.0

4.616,975

Dec.

2.55

2.70

1.33

4.560.158

—

2.55

2,83

1.33

4,566,905

4,563,079

Dec.

supply*
to hold the accommo*
dations for sale or rental to vet*
erans during the course of con*
struction and for 30 days there*

Exchange Closed

9.7

—

Stock

1,798,164

—12.1

4,524.257

4,538,012

2.65

2.56

Indus

Exchange Closed

1,793,584

4.368,519

4.042.915

1932

R. R.

2.56

2.48

H 2.67 ^ 2.48-

Stock

1,520,730

3.841.350

2.67

1.34

1.33

1,531,584 j
1,475,268
1,510,337

4,450,047

4.09G..954

;

rate*

11 items
in critic
Applicants

must agree

Corporate by Groups*

Corporate by Ratings*
Aaa
% Aaa |fe' Aa '
A
Baa

els.

11.6

1943

Individual Closing Prices)

Avge.
Corpo-

Bonds

r;:?

applications for and issue

process

HH preference ratings for
of building material now

cally

US.
Govt.

yai

4,413,863

3,984,608

1—.

Jan. 12__

116.22

4.482,665
4.513,299
4,403,342

X—10.2

—10.5

4 5

;113.50

9.0

4.396,595

Dec\

Week Ended-

104.31

—10.6

4,354,939

Doc.

r-*'
Jan.

100.32

;

13.2

(Thousands of kilowatt-Hours)

1944

3,899,293
3,948.024

17——

.—X.

111.07

year ago

11.7

WEEKS

RECENT

tyy' 1945,

X—•'

10—^

116.22

000,000 bushels.; It was added:.
Stocks held in all positions

13.2

:XA:w§1.7:;

10.0

9.2

5.0
19.6

% Change

Week Ended—
3

118.20

The

DATA

Nov.

111.07

1944.

Over Wheat

§ Increase.

120.21

FHA, through the National
Housing Agency, the; authority to;

to the

President Concerned

Feb. 2

;

2.1

4/x:@'3.3

12.3

Total United States.

119.41

2 Years

:; x

: r..

Feb. 9

6.0

10.0

114.27

month. Under the

system the Civilian Produc¬
tion Administration has delegated
new

1 Year Ago

Year Ago

-Week Ended

S2.0

110.52

Feb.

week in. 1945.

4.2

13.2

——

106.04

149,000

1.0

States—

114.46

LOW

4,000

437,000

;;A; 20.0

Coast

Pacific

118.60

„

15——

162,000
X

20.5

Rocky Mountain—

Southern

120.22

'■

SAME WEEK LAST YEAR

Feb. 16

5.2

—

x_——

Central——i-

West

114.66

66,000
675.000

3.4

Industrial

Central

"121.95

mitted is $80 a

122.29

1945-

applications received to
have been for sales

including land and improvements,
and the top monthly rental per¬

120.63

Jan,

33,000
,

830,000.

2,000

•

120.84

120.22

117.80

^102,000:

V/6.4

117.80

116.80

114.46

2.49

end 3,948,620,00 kwh. in the
The output for the week ended Feb. 23,

■

114.66

114.27
112.19

2.49

2,450,000

Feb. 23

112.37

119.20

117.40

2.69

a year ago,

117.60

122.09

119.82

2.69

industry of the United States for the week ended Feb. 23,

•

119.82

123.56

1.33

1946, was 3,922,796,000 kwh., which compares with 4,473,962,000 kwh.

121.67

121.46

1.33

Institute, in its current weekly report, esti¬
mated that the production of electricity by the electric light and

Major Geographical DivisionsEngland______
X^

117.80

361,000

The Edison Electric

New

121.46

2.69

ileciris Ouliiui for Week Endsdfeb. 23,1S48

118.40

2.69

2.254,000

same

115.04

1.33

|
,C

151,000.

UNDER

121.88

112.56

1.33

,34.000

DECREASE

122.09

118.80

118.20

5_—_X—

12,280,000

PERCENTAGE

119.41

115.24

120.63

119.61

180,000
,

12,630,000

week

115.63

112.93

122.09

1,157,000

29,000

12.3% below that of the

113.31

118.20

125.18

7—

tlncludes operations on the N. & W.; C. & O.; Virginian; K. & M.; B. C. & G.;
bed Ion the B. & O. in Kanawha, Mason, and Clay counties.
tRest of State, including
the Panhandle District and Grant, Mineral, and Tucker counties.
§Includes Arizona

was

119.00

118.60

126.11

35,000

12.3% Below Thai for Same Week

121.25
120.84

121.46

123.34

117.60

)

377,000

*Less than 1,000 tons.

123.12
122.50

8—

63,000

'379,000

12,500,000

119.00
118.60

119.20

126.28

581,000
X

2,000

*«*

118.80

126.28
126.06

126.05

124.97

1,554,000
.

42,000

152,000

/v:-.*

week ended Feb. 16, 1946.

prices of less than $7,500 or rentals
of less than $60 a month. The top,
permissible sales price is $10,000,

•

1946

122.29

1,000

802,000

iii the corresponding

122.29

119.41

200,000

power

122.29

119.41

115.82

233,000
1,000

Oregon;

119.41

115.82

113.50

44%

1,020,000

anc';

116.02

113.50

-16—X

•

210,000

113.70

118.80

19.W-X18——
•'

103,000

171,000

2,876,0001

'•

1,009.000

118.80

121.46

20—X—'

2,239,000

# Total bituminous & lignite

121.46

123.34

26—

;

WestWirginia—Southern_X

§Other Western States

123.34

119.20

X: 25

23,000

Wvoming—xx——-

118.20

126.05

.; -21—

itVest Virginia—Northern—

125.97,

**-

Daily

120,000

64,000

147,000
.

122.29

26,

7,000

2,000

—.

119.61

23——

373,000

146,000

—

28,000

2,868,000
;

lignite)—-—

Virginia———i—
Washington

57,000

—

1946

475,000

3,000

Pennsylvania (bituminous)**

116.02

1946—

;

1045

*55,000

782,000

Tennessee—

113.70

26,

1,095,000

97,000
25.000

iNew MexiCoXX—'
North & South Dakota (lignite)

Texas (bituminous &

118 80

(Based

Feb. 10,
.X;:

124,000

1,144,000
427,000'

Ohio

121.46

22—XX^-

••

578,000/
/

Xi 51,000

:~*—'

123.34

1946—,.

Feb.

1,539,000
v.;

136,000

(bitum. & lignite)

Montana

1,550,000
550,000

43,000

119.20

Of the

;

MOODY'S BOND YIELD AVERAGES

UGNITE»

—

125.98

—

\verages

1,000

•

1,000

Georgia and North Carolina

Kansas and

date

1946—--

Feb.

153,000

107,000

151,000

122.29

2 Yedrs Ago

486,200

6,000

6,000
****.-»

——.

122.29

119.82

1 Year Aso x

authorized

323,000
-

Colorado-^----————
Illinois—,—.

122.29

119.82

116.22

4—_*

§Revised.

'•'"Feb.V';

317,000

Indiana--——————
•lowaXil—'

120*02

116.41

113.89

11—

—Week Ended

Feb. 9,

■

116.41

114 27

119.00

I—*—

(The current weekly estimates are based on railroad carloadings and river
shipments and are subject to revision on . receipt of monthly tonnage reports from
district: and State sources or of final annual returns from the operators.),
'• ' '

Arkansas and Oklahoma-.

114.27

119.00

121.67

18—

1937

PRODUCTION OF BITUMINOUS COAI+ AND
BY STATES, IN NET TONS

Alabama—-

119.20

121.67

6,830,000

709,400

586,600

^Subject to revision.

•

121.83

123.56

Jan. 25-^-—

State—

123.34
123.56

119.41

7,189,000

and. coal shipped by truck from

dredge coal

and

tExcludes colliery coal.

-••-■v.

107.000

94,800

v,. 60,800 4

washery

Includes

operations,

i946

6,921,000
7,801,000
1,139,000
6,644,000
7,488,000
1,093,000
'y^yj-'.'-'

States* total

United

119.61
119.61

4—**'

Feb. 20,

1,165,000
1,187,000;; 1,118,000
1,236,000

♦Total incl. coll. fuel

into effect on Jan# x
said: •

Feb,
Feb. 17,

went

125.06

—'

-Calendar Year to Date
Feb. 16,

Closed

125.09

/:/.

..Week Ended~~——-xJFeb. 16
§Feb. 9,
Feb. 17,
1946
1946
1945
•

119.61

Exchange

126.15

ANTHRACITE AND COKE

PRODUCTION OF PENNSYLVANIA

123.34

the ; new • system#;
expediting construction
moderate-cost housing for vetsince

119.61

High

xxfefftX/xxAx X.

114.27

126.12

Low

:-,Xv'

119.20

Stock

13—126.15

9—

tSubject to current adjustment.

)'•'If Revised.

122.09

12——

Feb. 17,
1945
81,520,000
1,960,000

t Feb. 16,
1946
82,879,000
2,067,000

123.56

119.61

126.15

116.61

122.09

11—-X--

.'Jan, 1 to Date—

.■

11,585,000

12,500,000

2,030,000

Total, including mine iuel—
Daily average —

;Feb. 17,
,1945"

*Feb.9,

1946

lignite—

.■■I.,

114.27

121.88

16-_X--j-

4'vi-

lignite

bituminous coal and

Jfet Tons)

122.09

123.56

—

united states production op

114.27

123.34

the corresponding week of 1945.

Estimated

121.88

Exchange Closed h

119.61

decrease of

122.09

119.00

120.22

-120.22

14,000 tons when compared with the output
for the week ended Feb. 9, 1946; and was 26,200 tons less than for
showed

120.02

116.41

United

the

Indus.

116.41

126.02

P. U.

R.R.

114.27

126.00

21
-

reported that the estimated production of bee¬
States for the week ended Feb. 16, 1946,

The Bureau also

hive

;

123,56

Corporate by Groups*

Baa

119.00

121.88

Stock Exchange Closed
126.02
120.22
123.34

pared with the output in the corresponding week of 1945 there was
an increase of 97,000 tons, or 8.5%.
The calendar year to date shows
an increase of 12.7%
when compared with the corresponding period
,

Aa,

123.56

120.22

125.97

J. Production of Pennsylvania anthracite for the week fended Feb.
16,. 1946, as estimated by the Bureau of Mines, was 1,236,000 tons, an
increase of 71,000 tons (.6.1% ) over the preceding week.
When com¬

of 1945.

Yields)

(Based on Average

Output in the corresponding week of 1945 totaled 11,585,-?
Jan.; 1, to; Feb.t 16, 1946, soft coal production
tons, an increase of 1.7% when compared
81,520,000 tons produced from Jan. 1 to Feb. 17, 1945.

ing week.
000, tons.

Applications covering an addi¬
tional 1 9,42T dwelling units were ;
received by the : field offices of ;
the Federal Housing Administration during the week from Jam
22 through Jan. 29 under the vet¬
erans' housing priorities system,
FHA Commissioner Raymond M.
Foley"announced on Feb. 1. This
makes total applications covering
38,191 units which have been re- ''

i;, MOODY'S BOND PRICES

Dee.-

27*X*X*xX;-*W.

Jan.' 24__**x-rW—--

1946 High; Feb. 21 X—--*-———fLow, -Jan. •2_X-_XXi^->XX*_X*^XX

i. '

♦Holiday.

268.7
269,3 *

269.7
269.7

269.5
269.5
267.3

266.0 '

,255.0,;
265.0

252.1

•269.7
264.7 f

il? v'lhu

JVolume 163

Number 4463

■

THE COMMERCIAL &
FINANCIAL CHRONICLE

i'L-

1145

Trading
The

Securities

and

Exchange

Commission

made

public

unchanged. Jb'bW > ■
',,v> ,*
During the week 6 price series in the
advanced; in the preceding week 3 declined

Feb. 20 figures showing the volume of total round-lot stock sales on
the New York Stock
Exchange and the New York Curb Exchange and
the

volume

round-lot

stock

transactions

for

the

account

second
'♦

Curb Exchange,

•Total Hound-Lot Stock Sales oq the New York
Transactions for Account of

■■

5
i

Members*

WEEK ENDED FEB. 2,

(Shares)

PRICE

Week

Feb.

■

10.8

f"elST,-

8.2

H
1.3

141.5

and

100.0'
Feb.

146.6

1634

165.6

145.7

237.8

206.3

169.8

169.7

•

Indexes

163.7

'•

158.3

157.8

129.1

130.4

1335

1334

they ard registered—

110.2

.110.2

104.7

160.4

154.1

vember.

127.0-

127.0

.125.4

,118.2

118.2

118.3

119.8

' 119.8

119.9

105.2

104.8

1424 ;

142.1*

141,8

139.8,

427.2

159.8C:';; 155!9"

1946, 110.7; Feb. 16, 1946,
'

1,295,260

Short

Total sales——J.

1,323,400

Short sales—
tOther sales

Feb. 25 in

292,440

I, Other transactions initiated off the floor—
A

Total

purchases.-—.

tOther sales—.
;

;

•

;

1,917,621

Round-Lot

2,367,631

Stock

Sales

"Transactions

the

for

New

Account

York

Curb

Feb. 25 and

was

Members*

WEEK ENDED FEB.

and

Stock

(Shares)

Total Round-Lot Sales!

•"

?'?<<*

2; 1946

—

'|fp

Total for. Week

_-*•——

dispatch.]

6,487,675

are

registered—

i,-U.;•

Strikes
542,475

Short sales_

44,455

*'t

Initiatelf

Mnr'rtnh*i,;'w;in

metal

Total sales..
I. Other transactions Initiated off the
floor-

Total

107,900

purchases----,----------.-.-*—,—

Short sales

—

fOther sales

1.40

come

serve

107,395
22,475

—

;

422,825

Total purchases

13,04

With

196,004

Total sales.

Exchange thembers,

their

including special partners.
tin calculating these percentages the total
of members'
purchases- and sales is
compared with twice the total round-lot volume
on the
Exchange for the reason that
the Exchange volume includes
only sales.
tRound-lot short sales which are
exempted from restriction by the
rules are included with "other sales."
Commission's
{Sales marked "short exempt" are
included with "other sales."
b

undoubtedly will be called
furnish addditional
cop¬

than that paid last
year.

i.'v.,((

•

>.y

Ap*#

'a.

'iC'i 'S''-

•

''i.*:-'

«.»

>■*

\.,V.v<\

moving slowly, owing to the

Average price, 99.904-f J equiv¬
of discount
approxi¬
mately 0.375% per annum. V;'
Range of accepted competitive
alent! rate

Cadmium
week

Dead•

bids:

were

With the demand

for-lead

ac¬

tive; inspired' in part by a possible
stoppage of work at smelters and

-Vv

National Fertilizer Assosiaiion
Price Index Remains

state.

Commodity
Steady

A.S.&R., the market
in a highly nervous
News from Washington that

last week
CPA

will

was

allow

mine

operators

discount

ing supplies;v'Af the recehtmeetihg of the advisory group repre¬

per annum.

senting distributors, CPA officials
that demahd for cadmium
absorbing the metal at the rate

per annum.

(60% of the amount bid for;
the low price was accepted.)!

of about

9,000,000 lb. a year, or
proximately 1,000,000 lb. in

ap¬

ex¬

of estimated new
supply. To
meet the heavy demands of con¬

6,000,000 lb., with supply
arid demand virtually in
balance;

ing the daily volume of stock
transactions. for odd-lot account
of all odd-lot dealers and special¬

made public on Feb. 25
for the
23, 1946, remained at the same level
as that of the
preceding week, 142.1.
A month ago the index
stood at 141.8, and
a year ago at
139.8, all based on the 1935-1939
average as 100.
The
Association's report went on to
say:

metal,

ities believe.

Consumers

market

author¬

have

ists who handled odd lots

being published by the

cialists.

asked

LOT ACCOUNT OF ODD-LOT DEALERS
AND SPECIALISTS ON THE N. Y.

pre¬

STOCK

Week

Number of

649,556

56,007
—-

1,602,273
$65,745,897
,

2,641,832

(Customers'sales)
Customers' short sales—

126

•^Customers'
Total

some

increase iri

other

sales—*

39,061

Customers'

The supply situation in tin is
improving slowly, but consumers

total

sales-

39,187

•

Number of Shares:
,

•

con;

sumption;will be

permitted in the
large tonnage of foreign lead for
During the latest week the advances
third quarter of the year.
registered in three of the March delivery, but it
appears '% Quotations in the
composite groups of the index were offset
domestic mar¬
by a decline in one of the doubtful whether they will ob¬
more heavily weighted
ket remain unchanged.
Forward
groups. ^ The farm products
group declined tain even one-half of the quan¬ metal
slightly. The cotton subgroup I continued its
was nominally as
follows,
advance.
The grain tity; requested.
February allot¬ cents per pound:
index showed a small increase
because of higher
rye quotations.
The ments V;of foreign lead by CPA
livestock index declined
Feb.
March
April
moderately with lower prices for
cattle, were, held down tdl'around 14,000 Feb. 14
lambs, sheep and live poultry.
52.000
52.000
52.000
The textile index
advanced fraction¬ tons.
Feb. 15—
52.000
'
52.000
52.000
ally.
The building material index rose
Feb. 16,—..,.*
52.000
substantially because of
52.000
52.000
The Mexican
higher prices for oak flooring.
si^tion has im¬ Feb.
The chemical and
52.000
52.000
52.000
drug index was proved somewhat/. Workers re¬ Feb.
slightly higher due to an increase in castor oil
52.000
19——**
52.000
52.000
prices.
The price for turned to work at
several mines, Feb. 20
52.000
finished steel advanced
52.000
52.000
fractionally but the rise was not sufficient
and ' the
to change the metal index.
Monterrey
refinery,
Chinese, or 99% tin, continued
The small decline in
I
potato prices was closed since the
beginning of the at 51.125# per pound.

Customers' short sales**** Customers', other sales—*.
Customers'

Dollar

sales

total

value

——

Round-Lot Sales by Dealers—
Number of Shares:
.

4,560

1,099,777^
1,104,335
$48,065,711

Short sale3——*—
tOther sales —i—

;

Shares-

V A

Total

For Week

Number of Orders:

;

9, ,1946 ;

Dollar value——-—--*-'—.
Odd-Lot Purchases by Dealers—

1,992,276

867,445
2,836,339

——

Feb.

(Customers' purchases)
Number of Orders

1944

1,968,894

EXCHANGE

Ended

Odd-Lot Sales by Dealers—

Institute, follows:
1945

believe that
for

STOCK TRANSACTIONS FOR THE ODD-

ceding year, jowing chiefly to fur¬
ther gains in output of
electrolytic
plate to conserve tin. # Tin-plate
production in 1944 and 1945, in
tons, according to the American

dipped..

;

iipon

reports filed with the Commission
by the"" odd-lot dealers and spe¬

in December 1944. Production in
1945 was larger than in the

•

the

Comn^is-

sion. The figures are based

Production of tin-plate in the

Iron and Steel

New York Stock Exchange, con¬
tinuing a series of current figures

bear¬

Tin

Electrolytic

ditional

fields,

ings, pigments, Ctc.

same

week ended Feb.

other

sim¬

The Securities and Exchange
Commission made public on Feb.
20, a summary for the week ended
Feb. 9 of complete, figures show- f

consumers in

maturity of

NYSE Odd-Lot Trading

In 1940, production amounted to

return

was a

on bills on Feb. 28 in
the amount of $1,316,013,000.

about
A

There

ilar issue

sumed the Government has been
drawing heavily on its stockpile.

Hot

premium payments as old
producers, effective Feb. 1? this
year, will riot bring out much ad¬

Low, 99.504; equivalent rate 6f
discount
approximately 0.376%

said

who started
producing after Oct.
27, 1943, to become eligible for the

The weekly wholesale
commodity price index compiled
by The
National Fertilizer Association and

...;

High, 99.908,1 equivalent rate of
approximately - 0,360%

cadmium to conserve shrink¬

194,678 tons, against 224,112 tons
•

$2,005,866,000.
$1,316,466,000

(includes $41,343,000 entered on a
fixed price basis at 99.905 and ac¬
cepted in full)..,,<

strike situation at brass mills.

United States in December totaled

refineries of
<

Total applied
for,
Total
accepted,

Special High Grade continued
at a lively
rate, but grades that
enter into the production of
brass

market for copper rising, the new
price may be somewhat higher

265,344

--■

re¬

cess

reference to fixing terms for the
sale of South American
copper
to the Government; " With the
free

196,004

•The term "members" includes all
regular and associate
firms and their
partners,

galvanizing operations

for

are

there¬

dated Feb. 28 and to mature
May 31, which were offered on

zinc increased last week.
Call

ern

$1,300,000,000

92-day Treasury bills to

Feb. 21, were opened at the Fed¬
eral Reserve Banks on Feb. 25.
V

Total purchases-

about of

6,461 tons.

more plentiful
plant of Anaconda Wire & Cable
metals, * is necessad> CPA holds.
closed down last week
because of Before
arriving at a defnite pro¬
labor trouble.
^
gram for curtailing consumption,
Negotiations are in progress in CPA officials are to meet with

Total sales.

ICustomers' other sales

The Secretary of the
Treasury
on
Feb. 25 that the

strike

prewar electroplat¬
tinues, and the refinery at Laurel ing,
involving a larger precentage
Hill remains idie.
The Hastings of zinc and other

76,730
891,720

0. Odd-Lot Transactions for
Account of SpecialistsCustomers' short sales

though

The strike in the Utah
area con-

4.09

723,820

Short sales
f Other sales—

occur

per.

mi.

Total sales
Total-

work

likely to

in
desiyed shapes will be¬
complicated. The Metals Re¬

upon to

400,350

additional
are

;

Treasury
Offering

Bill

suming, demand for Prime West¬

for

eries of A.S.&R. Co. shut
next week (see above),
th^°:
lem of suppiying consumena

9,800
98,100

—

...

7.55

floor-

the

foreign silver continued
an ounce troy.
London

Result of

urged to substitute other metals

fpr the m#tal remains
quite active.;!® Should then-refin-

73,950

Short sales.,—..
tOther sales

and

the needs of

unchanged at 44d.

tenders for

Electroplaters last

the demand

437,725

cover

The New York Offi¬

announced

in the next week restricted new
business in copper, even

393,270

Totill 5&16S
Other transactions
Total purchases

for

70%#

was

pub-*

to say

Copper

stoppages that
—.

JOther Sales.

■

Total purchases—

cial
at

ac¬

supply available

Work stoppage

lication further went

of Members:
1. Transactions of specialists in stocks In
which

they

part as follows:

6,394,195

Transactions for Account

the

insufficient to

Zinc

Round-Lot

and

•

year, resumed production Feb.
18.,
Lead
sales
for
the
week

controls and the Premium Price
Plan for Another year." The

sales....——93,480

XOther sales—

amounted to

100%

these
metals
pending
further
developments. Bills were intro¬
duced in Congress to extend
price

14.79

Exchange

■

Short

plants and^

offerings of

Total sales.

{•>',

call

some

the

would further restrict the
supply
of both copper and
lead, and sell¬
ers, last week limited

450,010

JOther sales

Total

Press

2,024,550

Short sales

,v„1

"■

;•

Offerings of Copper and

—

effective, involving some 7,000
workers, according to an Associated

4.20

rialized

*751,791

Total purchases

tive

consumers.

American Smelting
& Refining Co.
[This strike mate¬

651,181

—

Total sales.

Total—

mines

1.77

496,250
100,610

Short sales

disturbing
developments within their own industry. The
International
Union of Mine, Mill & Smelter
Workers, CIO, voted to

245,840

Total sales

labor

46,600

——

in the steel

233,040

——-

consumers of
non-ferrou.s
metals might have gained from
the settlement of the
labor dispute
industry was nullified last week by additional

8.82

the floor-

stated:

1,020,600

1. Other transactions Initiated
Total purchases

'"V't-,.

"E. & M. J. Metal and Mineral
Markets," in its issue'of Feb. 21,
"Any comfort that producers and

302,800

"pother

Silver

Demand for silver remains

110.7, and

Lead Shrink on Strike
Threats—Demand Mve

Domestic production of
quicksilver'in December was 1,600 flasks, and
imports amounted
to 770 flasks.

■■

Non-Ferrous Metals

Total purchases

The Bureau of Mines
estimated

1604

...

1. Transactions of specialists in stocks in which

last

unchanged at $103 to $105
flask, spot and nearby. * On

110.2

Dealers and Specialists:

quicksilver

moderate, with quota¬

119.8

for

was

metal ^$102
might
be
done, according to sellers.
Some
export inquiry was noted.

159.8

•

128.7

was

$.103

forward

•
■

Round-Lot Transactions for Account of Members*
Except for the Odd-Lot Accounts of Odd-Lot

per

quicksilver
the basis of

161.3

1926-1928 base were: Feb,
23,
108.9.
'

;V.M£

14.845,670

145.3

133.9

consumption in December at 2,000
flasks, against 2,500 flasks in No¬

on.

1945,

Demand

163.1

168.8

128.7

——

All groups combined-

24,

tions

146.6

drugs————l—

Fertilizers-—*-—
Farm
machinery——

•3

141.7

]70.i

157.1

•

Fertilizer materials-.—————

(

for Week

141.3

Textiles-^;i—461.3A-'':'161.0..'"a

Chemicals

•3

week

Ago

133.9

"'-C. Metals
Building materials———l

1945

169.9

—

Miscellaneous commodities

Feb. 24,

1946

163.1

flask, duty paid.

Ago
Jan. 26,'

247.8

Livestock—--—*—..—,——

17-3

Spanish

offered here
per

146.6

Grains-

•

merly.

1946 "

Feb. 16,

interested

was

merchandise metal for the
present
through the same agents as for¬

f-.

■

trade

report to the effect that the Euro¬
pean
producers had decided to

\1 ' V

159.7

Farm Products
'

14,330,240

163.1

Cottonseed Oil

Quicksilver
The

Week

23,

r: 141.5
Fats and Oils

Cotton

6ales-.--.—L—.-515,430

' lOther

INDEX

1946

To\:al

V '

*
,

COMMODITY

Group
,

23.0

Stock Exchange and Bound' lot Stock

it. Total Round-Lot Sales:
Bhort

* ./

Foods
■V

2, amounted to 1,692,270 shares, or 13.04% of the
Exchange of 6,487,675 shares. During the week
ended Jan. 26 trading for the account of Curb members of
1,071,760
shares was 13,16% of the total trading of
4,073,445 shares.

25.3

that

;

WHOLESALE

Total Index

and

Compiled by The National Fertilizer Association
1935-1939=100* 1
'

.
'

£ach Group
3earato the,

member trading during the

and

declined

i'*'/'

;
•

Feb.
on

index

advanced; in the
advanced.P
r

—...

York

Week ended

WEEKLY

A'v

total volume

preceding week 6 declined and

all

members.of these exchanges in the week ended Feb. 2, continuing a
series of current figures being
published weekly by the Commission.
(Short sales are shown separately from other sales in these
figures.
Trading on the Stock Exchange for the account of
members
(except odd-lot dealers) during the week ended Feb. 2 (in roundJot transactions) totaled 4,392,181
shares, which amount was 14.79 %
of the total transactions on the
Exchange of 14,845,670 shares. This
compares with member trading during the week ended Jan. 26 of
3,401,203 shares, or 14.33% of the total trading of 11,873,690 shares.
On the New

All other
groups of the index
/
V-1 '
'pv; :
• •••

remained

■

.'■'.1

not- enough* t<T affect the,food
index.

New York Exchanges

Total sales

148,580

Round-Lot Purchases by Dealers—
Number of shares^—.——
•Salr-s

marked

no
148,470

"short

exempt"

614,250
are

re¬

ported with "other sales."
tSai^n to offset customers' odd-lot order*
and sal-is to liquidate a long posit on which
Is

less

than

round lot

"other sales."

are
-

reported vith
-

•

,4-.

THE COMMERCIAL. &

1146

the daily
week: ended Feb. 16, 1946,
was 4,709,950. barrels, an increase of 19,450 barrels per day over the
preceding week and 279,95Q barrels in excess of the daily average
figure of 4,430,000 barrels estimated by the United States Bureau of
Mines as the requirements for the month of February, 1946.
The
current figure, however, was 70,720 barrels per day less than the out¬
put, in the week ended Feb, 17, 1945. Daily production for the four
weeks ended Feb. 16, 1946 averaged 4,659,000 barrels. Further details
Institute

Petroleum

American

The

estimates that

crude oil production for the

*
"Steel"
of Cleveland, In its.
week, $34,898,000, is 29% above last
summary, of-the iron and stael, »
week and 268% above the week last year. Public construction; $16,mark&ts, on Feb. 25, stated in part
666,000, is 2% below last week and 1-44% ^greater than the corre¬ as.
follows:/v7/ %
*-. ,
»
sponding week of 1945. State and municipal construction records a
"While there has been increase
4% increase over last week and a 231% increase over the week last in steel demand since end of the
year.
Federal construction is down-10% below last week's total but
strike a week ago it is restricted. .
66% greater than the 1945 week.!
Many consuming plants still are 7
Total engineering construction for the height-week cumulative
closed because of lack of steel
period of 1946, $499,426,000, is 153% greater-,than the $197,709,000 supply.
Also consumers before y
recorded for the same period of 1945;I On a cuifrulative basis, private
placing new tonnage, want to
construction in 1946 totals $336,124,000, 452% above the 1945 period. know not
only the .cost of steel ;
The 51% drop in Federal work was not sufficient to offset the 338%
products they require under the '
increase in state and municipal Construction, as public Construction,
price schedule now being formu¬
$163,302,000, rose 19% over the total for an eight-week period of 1945, lated; btit also the markup on
Civil engineering construction volume for the current week, last
other materials
and their own

Private construction this

follow:
t
refining companies indicate that the in¬
dustry as a whole ran to stills on a Bureau of Mines basis approxi¬
mately 4,643,000 barrels of crude oil daily and produced 14,002,000
barrels of gasoline; 2,285,000 barrels of kerosine; 5,776,000 barrels of
distillate fuel, and 8,813,000 barrels of residual fuel oil during the
week ended Feb. 16,1946; and had in storage at the end of that week
Reports received from

J I? :

Total U. S. construction

construction
Public construction

PRODUCTION (FIGURES IN

CRUDE OIL

Actual Production
Change
Week

State

Allow¬

*B. of M.

Begin,.

Feb. 16,

Feb. 1

1946

February

___

Nebraska

.
.

249,400

900

North

81,000

West

Texas
Texas

144,450
320,500
347,050
527,900

2,073,050

2,146,400

79,650
288,850

68,750
294,800

368,500

363,550

400

79,200

North Louisiana

—

288,850

Louisiana

Arkansas

Mississippi +.4.---^—^;

200

77,150

100

55,350
800

100

—:—-

6"350

210,700

15,650

62,050
31,100

208,350

16,250

200

61,200

-A.

Eastern—

v'63,800

2,550

29,000
46,000

29,950

2,050

62,150 :v
30,300

12,100

2,200

44,350

51,100

103,400

5,600
50

100,200
19,150

100,950

19,050

24,050

1,250

98,450.

23,000
98,400

103,950

2,200

842,150

902,300

+ 21,650

3,816,850

3,878,370

Kentucky
Michigan
T

_____

y omingr

•

94,000

—'

■'

Montana

20,400

24,000

CoIorado^_4._—
New

1Q4.000

96,000

Mexico

California

—

843,700

3,586,000
844,000

Calif,

Total East of

3,866,350.

§8?3,700

19,700
10,050

■

Bureau of Mines basis-

-——

;

(Gasoline tFtnlsL'd
v
■
and
JStocks

to Stills
Capac. Daily % OpReport'g Av. erated

Appalachian—

654

196

82.5:

2,527
1,375

tStks, of JStks..

ol
Resid.
Fuel

Gas Oil

;

Gasoline

Kero¬

Fuel

Stocfe

sine

Oil

22,645

3,657

8,116

6,591

3,082

176

417

305

1,177

285

22,988

1,219

3,453

3%87

293

120.0,

•

59.8

1,182

81.7

62.1

207

7 89.3

96.8
55.9

Louisiana Gulf CoastNo. La. & Arkansas—

Rocky Mountain—

95
6Q

87.2 7;707
7 78.3 .7 383

Okla., Kan., Mo.—.

826

95.6

3,878..
7:754:

305

117.3

77,55

43.7

-17.1

;

149

9.978

203

1,173

5,347

693

1,723

279.

1,022
666

4,130
1,248

1,565
494

105

92.3
64.8

363

2.141

750

77.6

1,963

15,825

California

1,321
'77275::4,782

217.

103

86.5

4—:

319

;

3.140
17,082

72.1

No.

District-No.

basis

Feb.

361
6,318

115

558

r?:

669

21,787

85.7

4,643

85.9

14,002 *105,233

8,43.6

27,273

40,036

85.7

4,512,

83.3

12,854 I1Q3,952

8,258

(128,301

39,555

t95,373

7,521

28,787

48,150

1946

16,

Total U. S. B. of M.

Feb,

9; 1946-

U. S„ B. of M. basis-':
Feb

17,

transit
barrels

barrels,
week

4,835

15,249

-m

tlncludes unfinished
gasoline stocks: of 8,200,000 barrels,
12,418,000 barrels.
fStocks at refineries, at bulk terminals, in
of kerosine, 5,776,000
and in pipe lines.
§Not including 2,285,000 barrels
of gas oil and distillate fuel oil and 8,813,000 barrels of
residual fuel oil

produced
and

1945,—u__

"Includes

gasoline

unfinished

stocks

during
5,650.000

1,465,000

the

week

barrels

ended

and

Feb.

8,630,000

16, 1946, which compares
barrels, respectively,'in the

17,

with

2.115,000
week

preceding

5,240,000 barrels and 9,390,000. barrels, respectively, in • the
1945,
([Revised in North Louisiana and Arkansas due to error

barrels.

ended Feb.

disputes,

of un¬
and these

are

found

automotive

railroad equip¬
Despite resump-

and

ment industries.

tion

largest, such
electrical,

the

of steel operations

the new

government wage-price policy has
not yet resulted in appreciable
decline
in
strikes in most
branches of the metalworking in¬
dustry.
"At the same
are

time many plants

down either

because of lack

steel, having exhausted inven- ?
tories, or must close temporarily
before mills can come to their«
rescue with further supply.7 Pre- *
diction is made by trade leaders
of

further drop before improve¬

ment starts,; Some large consum¬
ers assert it wip. be another two or
three weeks before they will have
sufficient steel ta warrant re¬

sumption of operations.
others are pressing

They and

for steel ton¬

by reporting company.

-7: '.7

7- '.,-

V-; /

semifinished

bars,

latter increase some products such
mercial-channels during the peri^
as
sheets, strip, nails, tubes and
od of the steel strike.
bars may be given a further boost
John X*. Lewis mny notify the
in order to afford relief to the
coal operators in the litter part of
this week or next week that new nonintegrated makers who prbwage demands will be made.
It duce these products from semi¬
finished steel purchased from the
is expected in some circles that

United Mine Workers' will atr
tempt, to, keep its: present taker
home pay (which in many mines
amounts to $63.50 a week for six
ft+hr days)/ the .same- for a 40^hr
the

large companies.
Going
ahead by
leaps and
bounds, the steel ingot rate made
extensive gains this week. If the

ruling."

Cost ol Living Rose
0.4% in December
Living costs' for the average:
family of wage earners and lowersalaried clerical workers in the
United States increased 4.4% in <

December, repeating, the- rise, in*
November, the National Industrials
present rate of recovery continues
Conference Board: reported vre-Z
work week.
.:77 output next week:may be above. cently.
The Conference Board's:
.Mr. Lewis in his opening ad¬ 70% of capacity, a figure which
cost of living index stood at 107.1:
would be far greater than steel
dress to the coal operators may
(1923= lOOj in December,; com-/
officials believed could be obtained
demand an end to both wage and
paredt with 106.? in November.;
:
The index waa 1.3%: higher than/
price / controls and call for free in so short a. time.,
collective bargaining. There is one 7/The American- Iron and Steel in December, 1944. An increase of <
Institute or) Monday of this week
thing certain, however, he will as
0.9% in food costs, ta
y^-31%3
that telegraphic re¬
in the past attempt to get a better announced
higher than im December, ♦ 1944,;
ports which it had received inbargain for his coal miners than
featured the rise in the cost rof
Phil Murray obtained for steel- diated that the operating rate of
workers.
7-7'^7/' v V steel companies having 94% of livings 04hc? increased costs w^re
the steel capacity of the industry
0.1%/ in, men's clothing^ Q.3% Jin
.Many, steel companies would be
Will be 58.6% of capacity for the
forced to reduce steel output sub¬
sundries, and :0.2% ; in; fuel yand /
stantially if the eoal strike should week beginning Feb. 25, compared
Women's clothing declined
with 15.2% one week ago, 3.9% light.
last for twq weeks, while other
; j
one month
ago and 94.0% ■ one o.i%.
firms would probably be hit if
.

■

Total U. S. B. of M.

basis

labor

Texas Gulf Coast

District

1,641

81.217.

Inland Texas————

settled

resumed,

stocking of coal from■?. its' Hiiues
and apparently also was unable

& Dist.

Blended

99.1

'76.8
«

tnd., 111., Ky

Inc. Nat.

78.4

Coast—99.S

District No.

consuming plants

"A number of

still idle are closed because

larger segment

Unfln.

at Ref.

Refin'g

District No.:

four weeks.. In any

con¬

tracts.

some products.
Because of many
biit by far the boost... Provision will be made to
of the steel indus^ help eradicate the plight of the requests for certain types and ;
small nonintegrated maker so that sizes of steel in which special <
try; was7un^ble td make such ar¬
the increase in semifinished steel shortages have developed dunng
rangements with the result that
the strike, representing changes
these badly needed coal supplies will not be as great aaihe" adjust¬
were
diverted into
commercial ment in finished items made by in original orders, mills are freez¬
the nonintegrated mills.
ing schedules for several weeks,
channels. The industry's largest
Unless
'■ I
plans" ar e great I y to obtain maximum output
operator made no agreements, witp
changed within thn^hextfew days, r "Shipments now going forward ;
the steel, union to permit the

.were

FINISHED

KEROSINE, GAS OIL AND DISTILLATE FUEL

Dally Crude Runs .;; Produc'n

Cast

three or

week

duction
as
a / safety
measure nage already on books/
be? utilized to carry on
y "Various leading sellers, in at¬
if a prolonged coal against damage to coke ovens.
The OPA on Mar. I
expected tempting to set up schedules, es¬
strike occurs^
td announce an ^entire new list oi timate a loss ol six weeks to two
Some
steel
companies made
steel prices which will reflect the months because of the strike and.
provisions to lay down the coal
allocation among various products difficulties in getting back to nor¬
mined at their pits so as to have
of the recent $5 a ton average mal,even more in the case -of/.:
it on hand wl^n steel operations

A.AND RESIDUAL.FUEL OIL, WEEK ENDED FEB. 16, 1946
;;M -r- ■■■•
.... •
.-vr.,; ; ^-\,\
(Figures in thousands of barrels of 42 gallons each)

to the end of last
signed new labor

steels such as sheet
are being billed: on the basis of ;
billets, tube rounds, wire prices ruling prior to Feb. 15,
rods and skelp may be advanced with the provision that any in-* y
: to quickly make provisions for
storage. Consequently almost 90 % $3 a ton. Finished items with a crease in the price - schdule nqw
Figures In tbis section include reported totals plus an
of the coal mined from this firm's few^^nxceptibhs are nkpected fo be being set up. will be added, in
estimate of urjrep'orted amo*mt& and are therefore on a
a ton. In addition to the accordance with the new OPA /
properties found its way into comp raised:

AND UNFINISHED GASOLINE,:

not

had

steel output

.V?vV,v.■T-:

'District—

ducers up

into

some pro¬

cannot

4,709,950

(

the $196,-

eoaFmiiies event a strong" possibility of a
owned by steel firms operated Rjt prolonged tieup would force many
steel companies to slowdown pro¬
high level, but these /supplies

Bureau of Mines, calculations of the
deductions of condensate and natural gas

STILLS:. PRODUCTION OF GASOLINE;- STOCKS. OF

the eighth

Resuming^^^ operations at ; ■&^

weeks becausp

schedule it.

Mills have been getting back

include some of the

this week totals $5,966,000
municipal bond sales and

of the steel^ strike/ the

are

CRUDE. RtJNS TO

■

for more than four

+19,45.0. 4,659,000 4.780,6170.;
requirements of domestic crude
oil (after
derivatives) based upon certain
premises outlined in its detailed forecast for the month of February.
As requirements
may be supplied either from stocks or from new production, contemplated withdrawals
from crude oil inventories must be deducted from the Bureau's estimated requirements
to determine, the amount of new crude to be produced.
In some areas tire weekly
estimates do, however, include small but indeterminate amounts of condensate which
is mixed with crude oiV4n the field.
**
•
,{
tQlilahoma,* Kansas^ Nebraska figwces are for week ended 7:0Qf a,m. Feb, 13, 194$.
tThis is the net basin allowable as of Feb. 1 calculated on a 28-day -basis and
includes shutdowns
and exemptions for the entire month.
With the exception of
several fields which were wcempted entirely and of certain other fields for which
shutdowns were ordered for from 4 to ^ days, the entire state was ordered shut down
for 4 days, no definite dates during the month being specified; operators only being
required to shut down as best suits their operating schedules or labor needed to
opera ta leases,, a total equivalent to 4 days shutdown time during the calendar month,
g.Recpmmendatiop of Consefvation CqmqUttee of California- Oil Producers.:
.
|
4.430,000

Total United States

4 *The?e

Capital:

much faster ratb than had
pected, the steel industry this v(eek was pondering over the threat
of a coal strike in April, according to "The Iron. Age,-' national metalworking paper.
"Negotiations fo? 'higher wages In ' the mines are
expected to'be underlay by Mar. 10 or shorfly thereafter/' states
ication
this publication in its issue of today (Feb. 28), which further adds:
Even though the steel industry *
the coal tieup should last as long
was. almost completely shutdowft

12,500

198/666

Mii

—

Indiana.'

Operations Now at 58.6% of CapacityMew List of Prices iay Be Announced March 1

tion of how they can

five of th<& nine classes production slowly and

Steel

204,500.

.13,000

Illinois
■

—

3,583,000

$2,726,000 in corporate security tissues. New capital for
week period in 1946 totals $294,607,000, 50% greater than
472,000 reported for the corresponding period of 1945.

.-100

Florida

3,236,000

6,648,000'

capital for construction purposes
and is made up of $3,240,000* in state and

250

10,295,000,

and unclassified.

New

51,500

4,1

1,000

Feb. 22,1945
"A further deterrent is the fact
$44,058,000 "K $16,301,000 that steel producers are discour¬
27,115,000
9,482,000 aging placing of further orders
16,943,000 t
6,819,000 until they have a clearer concep¬
■

buildings, earthwork and drainage, high¬
New

82,200.

55,100

600

Alabamai

—

77,500

79,603.

74,000
49,000

—_

400

368,050 '

412,515

368,000

Total Louisiana

ways

347,000
562,100

2,109,250

1,890,000 $2,126,504

Total Texas

labor costs.

bridges, industrial buildings, com¬

follows: waterworks^

mercial buildings, public

144,200
392,000

544,000

Coastal Texas

464,300

146,200

East Texas

Southwest Texas

Coastal

496,950

last year as

88,000

148,800

321,000

Central Texas.

East

81,000
155,200

356,150

777

nv1-;

Feb; 14,1946

recorded gains during the current week over last week as follows:
waterworks, commercial buildings, earthwork and drainage, high¬
ways and unclassified. Eight of the nine classes gained over the week

366,300
271,350

157,600
503,300

Panhandle Texas

10,702,000
5,964,000

in the« classified cohstructidn groups,

1945

389,650
247,600

350

22,950

1750

■

State

Federal

750

Feb. 17,

16,

1946

Week

1389,450
t259,650

388,000

368,000
254,000
800

Oklahoma $

Ended
Feb.

w—$51,564,000
34,898,000
16,666,000

and municipal

Week

Ended

4 Weeks

from

Requirements

Kansas

Ended

ables,

Calculated

BARRELS)

Feb. 21,1946

Private

DAILY AVERAGE

...

week and the 1945 week are:

40,036,000

distillate fuel, and

fuel oil.

barrels of residual

gasoline; 8,436,000 bar¬

finished arid unfinished

27,273,000 barrels of

rels of kerosine;

Engineering Construction Totals
$51,564,000 for Week
§Si §11

21 went on to say:

as.reported by the Institute

105,233,000. barrels of

Thursday. February 28,1945

year/aso-sThis.; represents an, in-„
crease of /43.4 points or
285.4%
frpm the preceding" week. The
operating:: rate, l.fo.r
the: vweek/
beginning Feb. 25 is equivalent to
Civil engineering construction volume in continental ^United 1,032,80b ions pf steel ingots and
States totals $51,564,000 for the .week ending Feb. 21, 1946, as re¬ castings, compared to 268,000 tons *
ported to "Engineering News-Record.'41 This vblume is 17% above one week ago,. 104,400 tens one >
the previous week, 216 % above the we£k- last year and 24% below month ago, and 1^32,70b tons 0he
the previous four-week moving average;
The report issued on Feb. year, ago.
••
" ' 4

Civil

Daily Average Crude Oil Production for Week
Ended Feb,16,1946 Increased 19;45Q Barrels
average gross

FINANCIAL CHRONICLE

.A:

■-<

Volume

Number 4468

THE COMMERCIAL &

Revenue Freight Car Loadings During Week
Ended Feb. 16,1946 Decreased 6,186 Gars
Loading of
totaled:
nounced

cars,the

Association

American

Railroads

Atlantic Coast

revenue freight for the week of Feb.
16, decreased
0.9% below the preceding week..
;
■
; c
N

862

corresponding week in 1945.
,

Seaboard Air

above the

cars

preceding week, but

decrease of 7,130

below the

cars

below the

preceding week, and

decrease

decrease of 6,933

445

cars

below the

cars

corresponding week in 1945.
All districts

reported decreases compared with the corresponding
week in 1945 except the Pocahontas, and all
reported'decreases com¬
pared with 1944, except the Pocahontas, Southern and Central
ern.

;

weeks "of January..

1946

February
2.
Week of February
9.
Week of February 16-

1943

Total

5,027,049

1944

3,158,700

723,135
713,240
707,043

739,556

805,714

755,832
784,703

793,181

774,237

5,283,746^.

5,531,832

REVENUE

•

9,490

24,091

24,619

21,267

603

707

603

Southbound———

136

122

128.

AND

RECEIVED

FROM

129,835

117,572

107,731

131,082

15,655

14,678

15,045

2,876

2,850

21,249
4,111

21,000

20,595

3.242

3,982

13,349
3,058
10,767
4,149'

13,954

2,439

862

1,354

1,442

254

742

649

897

633

670

2,042

8,804

8,356

12,736
5,981

532

'!"

*•

Received from

Revenue Freight Loaded
1946
1945
1944

Connections

330

Ann Arbor,—

321

1946

1945

1,597

284

1,818

Indiahapolis 8c Louisville—..

Central Indiana

2,459

2,156

6,390r

6,423

1,334

1,268

14,252
1,870

16,293

1,189
52

—

8s Maine—

3,069

7,814

Bangor 8t Aroostook
Chicago,

Total

Eastern District—

Boston

495"

■

489

2,408

Central Vermont

1,083

1,051

960

2,286

3.273

Delaware & Hudson

4,499.

4,719

4,864

11,903

14,307

Delaware, Lackawanna 8c Western
Detroit & Mackinac
—

7,051

8,518

10,367

175

7,496
^204

176

138

& Ironton
Detroit 8c Toledo Shore Line

1,426,

1,699

2,016-

T1...1

2,235

7,604.

247

Toledo

Lehigh 8c Hudson River
Lehigh & New England

—

Lehigh Valley—*—

12,067

12,363

13,994

3.621

8,928

10,338

152

149

2,884

3,990

1,813

2,034

7,428

8,850

1,681
7,315

1,324
13,133

1
'

2,946

Y,, N. H. 8c Hartford■New York, Ontario 8c Western
New York, Chicago & St. Louis
R. Y., Susquehanna 8c Western..
Pittsburgh 8c Lake Erie——

2.622

770

1,353

6,540

6,289

50,307
14>890
2,362
12,761
1,581
7,545
7,327

403

7,864
4,688

Illinois

8,690

812

839

277

301

251

310

7001

779

1,110

14,143

373

6,000'

5,979

10,893

3,582

5,706

5,028

2,858

5,519

199,965

241,823

353

319

152,531

Cumberland &

Pennsylvania

153,688

841,

776

931

22,412

2,702

2,951.;

1,221

4*1,140

38,654

1,176

1,852

7,064

481
364

35'

587

199

43 ;

202

140

1,297

4,952

4,382

Penn'-Reading Seashore Lines
"Pennsylvania System—.———

1,542
61,311

1.829

1,576

1,909

2,420

77,589

77,356

53,125

11,681

14,884

14,599

24,783

67,721
31,736

1,826

19.003

V 3,870

20,375

3,938

3,916

126,452

Pocahontas

931

Virginian..

21,693

8,742

23,955

3)428"

1,582,647
-1.520,384
—1,361,495
-1,486,504
June 15-—
—1,554,069
July 13———1,420,574
Aug. 14——
—1,305,780
Sept. 14——

19,805

19,791

11,220

3,126

961

12,206

2,845

11,506

13,405

2,694

3,113
11,501
2,750

788

12,381

2,855

4,146

4,292

Oct. 15
Dec. 15—

745

727

1,337

2,104

3,905

3,340

3,569

590

.6,109

935

888

824

1,220

2,104

2,355

1,429

1,890

817

1,650

1,906

979

950

468

1,409

586

1,435

1,561

122

580

700

f=S|l23

685

562

1,151

26,500

27,408
336

29,100

8,366

15,825

902

•T

IT-

IS,776

•

1940;

Jan. 15Feb. 15

10,804

16,164

170.364

29,283

16,520

173,782

137,755

186,112

1,556

3,132

55,328

4,409

120,272

288

657

6,199

2,315

2,337;
1,332

7,007
.1,856

2,305

1,943

IfiM*^162

69,475

101,370

Total—.

...";

•

I—

355

1,341

1,279
482

17,278

.170

387

5,052
15,619

3,836
13,531

120

168

7,903

8,742

4,648

8,50.9

7,147

5,015

5,526

3,361

5,445

4,545

6,287

8,420

■

59,237

72,355

68,562

57,179

68,930

•

——

tIncluded In Atlantic Coast
Line RR.
Oklahoma & Gulf Ry.
only in 1944 and
and 1946.

The

433

8,044
2,928
12,846

—

'•

freight traffic
I ^railroads in

based' on reports received
by the
Association from Class I railroads.

18,196

9,285
3,524
.10,534

2,438

Class

imately 49,000,009,000 ton-miles,
according to preliminary estimates

4,991

9,038

Southern——.——
/■!

336

115

M. W. 8c N. W.
V

2,880

16,420

—

——

2,341

142

Texas 8c Pacific

•••

2,954

7,166

Louis-Southwestern
Texas 8c New Orleans*————:——

Weatherford

3,542

174

St.

Wichita Fallsfe

1,656
2,830

4,846

—

Missouri-Kansas-Texas Lines
Missouri Pacific
Quanah Acme & Pacific
St. Louis-San Francisco

1,717
•2,959

the Association of American Rail¬
roads announced on Feb. 23. Traffic
in January amounted to
approx¬

3,615

963

4,568

305

—

Missouri 8c Arkansas

4,024

5,712

1<*'£557
2,411

volume

1946, measured in ton-miles
of freight, decreased 14% under
thecorresponding month of last year,

340

5.50L

The

handled
Jan.

125,074

-)Ofr/>558!
\a

Louisiana & Arkansas
Litchfield & Madison.

January freight traffic

was

19%

less than the same month
twa years ago, but was
very near¬
ly double that of 1939.
The following table summarizes*

revised statistics for the year
1945,
and preliminary figures- for Jan¬
uary, 1946 (000 omitted):
1945
1944
Dec.
11 mos. actual
634,370,827 679,649,843 6.7

includes Midland Valley Ry. and Kansas
also Oklahoma City-Ada-Atoka
Ry. in 1945

Mo. of Dec.—

NOTE—Previous year's figures revisedi

*46,500,000

57,264,554 18.8

.Year

680,900,000 736,900,000
7.6
Mo. of Jan..__
149,000,000 56,845,141 14.0
'Revised
estimate.
tPreliminary esti¬
mate.

Weekly Statistics

10,129

13,537

20.951.
1

27,929

21,238

6,387

10.972

4,356

4,507

1,437

2,610

53,674

17,953

of Paperboard

We give herewith latest
figures received by

Paperboard

Association, Chicago, III.,

paperboard industry.
The members

industry, and its
cates the

this Association

program include*

represent

advanced to equal
10Q%,

STATISTICAL

1945—Week Ended
1L_.,
•
..

8*_—

l946^Week Ended~"~"
Jan."

■

S—

—"

;

Feb. 16„

Remaining

Ton a

152,571

122,229

154,235

157,792148,591

27,139'

Percent of Activity
96

490,123
487,481

451,654

94
,

94
94

97,323

78,862

462,446

176,346

111,967

526,891

144,482

523,672

143,550

507,651
499,955

143,101

516,778

178,590
jj

3.7%

the

National

Barometer

were

above

week
the

Trade

production for the,
ending. Feb. 16, 1946.
In

same

week

new

•

orders

j these mills were 8.6% below proj ductipn. Unfilled order files of

150,634

169,482

152,066

529,767

139,681

149,794

516,211

89'
90

S"-;

91
92

Notes—Unfilled ordera of the
prior week, plua orders received, less
production, do
necessarily equal the unfilled orders at the close
Compensation for delinquent
reports, orders made for or filled from
stock, and other items made
necessary adjust¬
ments
of unfilled orders•*
-

the

reporting- mills amounted to
87% of stocks. For reporting soft¬

wood mills, unfilled orders are
equivalent to 32 days' production
at
the current rate,
and gross
stocks are equivalent to 36
days'
production.
;
1
.

142,142
^

reporting

Lumber

-H*

472,568

not

f 53,321

mills

MIIL ACTIVITY

134.265

-l-ii-i.

Production

172,297
173,537
150,330

143,366

Jan. 1*—i.——
Jan. 26—

9—

to
the
National
Manufacturers Associa¬
lumber shipments of 421

tion,

total

Unfilled Ordera

Ton*
-

...•_•_'

Dec

the

that they represent the total

Ordera

Received

Dec. ' 15
Dec.

statement each week from each

ftZPORTS-^ORDERS* PRODUCTION,

.Period

Dec.

83%

According

production, and- also a figure which indi¬
activity of the mill based on the time
operated. These

are

Lumber Movement—Weefc
Ended February 16,1946

from the National

in relation to activity in the

industry.

Dec,

Industry

Lumber

member of the orders) and

Feb.

28.014

20)999

—-

Exceeded Total in Dee;

2,415

15,187

1,933

——1,270,098
1,181,222/

Freight Traffic in Jan.

389

581

1,682

618

17T489

857

—

1,404,483
—1,500,015 '
465,798

——

Nov. 15—

678
s

*—

*1,327,109

—

12,147

2,876
,

—

—-

—

Apr. 13
May 15-

14,122

3,093

-1,475,441

Feb, 15.

70,917

509

120,972

Feb,. 2..

5,046

58,589

3,096

——

IK. O. 8c G., M. V. 8c O. C.-A.-A
Kansas City Southern

4,500

11,906

District-

Chesapeake <fe Ohio—..—.
Norfolk 8c Western.--—-

'86,687

•

Mar. 15

Southwestern District—

Jan. 12

81,223

409

—>

TotaL

122

(Pittsburgh)—

603

3,663

1,733

Union

411

2,139

1945—

Jan. 31-

650

22,626

1,561

6,577

1,505

Western Maryland

110

2,383

3)347

Western "Pacific

1,812

15,257

1,753
5,539

1,636

32,621 !l

LongTslandi.———,——

Reading Co>~—.——

254

2,483

7-:

Terminal—L.-—-—

figures

467

Cornwall—-—————-i—-————

Ligonier Valley

6,602

21,687

Southern Pacific (Pacific)
Toledo, Peoria 8s Western
Union Pacific System.

3,503
1,133

1,306
1,347

35,627

"Bessemer & Lake Erie
s
•Cambria? 8t Ind^ahau——
—.
Central R. R. of New Jersey—————.

4,861

2,615

North Western Pacific
Peoria & Pekin Union

2.891

Allegheny District—•

& Youngstown

10,310

23,242

City—

7,091

494
7,507
5,047

138,61.7

Akron, Canton

9,009

Garfield-^..———*

Denver 8c Rio Grande Western—
Denver & Salt Lake
i
Fort Worth & Denver

17,488

5,987

Baltimore & Ohio

3,546

113

Colorado 8c Southern

2,365

.232'

■

3,853

1,769

Chicago, Burlington & Quincy
Chicago 8c Illinois Midland
Chicago, Rock Island 8c Pacific.
Chicago & Eastern Illinois

18,981

850

Rutland.—

2,680

5,102

390

Wheeling"&"£ake*ferie————-

2,346

53,044

9,982

4,459

—

323

2,121

4.243

month.

following table compiled by
shows the amount of short in¬
terest during the
past year:

45,360

2,089

Pittsburgh 8c Shawmut

North,
'Pittsburgh 8c West Virginia

2,428
9,510

4,874

—

262

2,022

during the

short posi¬
shares oc¬

The

1,203

321

312

46,720

tion of 2,000 or
curred

2,252
5,089

77,428

Bingham 8c

4,472

277

804

•Pere Marquette.j,——

Pittsburg. Shawmut &

4,537

6,079

10,387
...

2,370

5,289

2,667
40,969

Montour.,———*
New York Central Lines

2,540

7,594

-N.

•

1,015

17,943

4,123

288

Central Western District—

3,949

2,216
7,489

—

Maine Central

Monongahela
:

3,483

175

Grand Trunk Western

297

3,053

Erie.

430

9,758

—

3,955

8,354

Total—

258

11,139

4,381

496

Spokane, Portland 8c Seattle

456

12,219

468

Spokane International

2,289

Detroit,

337

9,979

523

UsJC.

Feb. 15, 1946, there were
73 issues
in which a short
interest of 5,000
or
more
shares existed,
or
in
which a change in the

3,733

7,190
131

Ishpeming

at.

Exchange

10,938

(nternational-Great Northern

Total Loads

Railroads

834

1,467

;

1946 settlement'
date, the total short interest in all
odd-lot dealers' accounts
was 73,359 shares,
compared with 50,207
shares on Jan. 15, 1946.
The Exchange
report added:
Of the 1,276 individual stock
issues listed on the

29,563

929

ac¬

15,

■

129,020

3ulf Coast Lines

CONNECTIONS

1,508

759

3urllngton-Rock Island
LOADED.

(NUMBER, OF CARS) WEEK ENDED .FEB..

carried in the odd-lot
counts of all odd-lot
dealers.
of the Feb.

11,459

Minneapolis & St. Louis
*»•)—
Minn., St. Paul & S. S. M.

systems for the week ended Feb; 16, .1946/

•

FREIGHT

1,671

of the close

excluding short posi¬

tions

1,778

8,450
23,943

Great Northern

During this period 55 roads reported gainstover the week ended
Feb. 17, 1945.

1,657

both totals

492

683

firms, was
1,181,222 shares, compared with
1,270,098 shares on Jan. 15,
1946,

5,155

994

the

members and member

965

344

4,080

9,522

The following table is a summary pf the freight
carloadings for

the separate railroads and

913

3,002

10,121

Nevada Northern

3,003,655

2,883,620

Week of

207

::'"k 278

10,815

Missouri-Illinois——..—
:

west-

•

366

3,315

11,670

Alton—,

cars,

234

321

Line—.———

Atch., Top. 8c Santa Fe System

loading amounted to 7,799

12,396

384

——

Coke

9,103

377

Green Bay & Western
Lake Superior &

corre¬

sponding week in 1945.

23,527

27,204

860

551

Ore loading amounted to 5,412 cars, a decrease pf 466 cars below

<Sf the preceding week and

17,357

392

Elgin, Joilet & Eastern
Ft. Dodge, Des Moines &
South

:r\«

13,987,

406

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

cars

4,143

27,444

Northwestern District—

increase of 730

•

27,620

396

TotaL

decrease of 3,449 cars below

the corresponding week in 1945.

824

4,196

1,292

Northern Pacific

2,618

355

4,029

business

Feb. 15, 1946
settlement date, as
compiled from
information obtained
by the New
York Stock
Exchange from its

120

446

The short interest

1,509

4,445

—

In the Western Districts alone loading

cars,

2,200

1,274

lowing:,
of

^'963
t:

——

Winston-Salem

increase of 4,f$8 cars above the

Forest products loading totaled 36,318

984

I
-

270

Southern System:
Tennessee Central

of livestock for the week of Feb. 16 totaled. 14,058 cars, a decrease of
&3 cars below the preceding week, but an increase of
3,905 cars above
the corresponding week in 1945.
/

166

2,928

—

1.659

Richmond, Fred. 8c Potomac

increase of 7,175 cars above the corresponding week in

below the preceding week but

844

3,382

27,306

Norfolk Southern
Piedmont Northern

Livestock loading amounted to 18,080 cars, a decrease of 251

3,470

25,514

Mississippi Central

preceding

345

433

Nashville, Chattanooga & St. L.

above the corresponding week in 1945.
In the Western Districts
alone, grain and grain products loading for the week of Feb. 16
totaled 34,366 cars, an increase of 1,714 cars above the
*

253

4,946

Macon, Dublin & Savannah

Grain and grain products loading totaled
51,843 cars, an increase
cars above the
preceding week and an increase of 8,817 cars

1945.

3,420

288

141

1,187

Louisville & Nashville

of 999

week and

1,881

285

Illinois Central System

corresponding week in 1945. ^^ Coal loading amounted to 181,840
cars, a decrease of 4,326 cars
below the preceding week, but an increase of 15,014 cars above the
corresponding week in 1945.

6,158

1.658

3,642

3,155

Gulf, Mobile & Ohio

than carload lot freight totaled 118,332 cars, a decrease of
1,920 cars below the preceding week, but an
increase of 15,063 cars above the

311

1,495

...

Georgia 8c Florida-

'Loading of merchandise less

4,737

t
14,474

453
,

Reported

The New York Stock
Exchange
made public on Feb. 20
the fol¬

—

'•■■■

3,578

2,787

t
10,113

34 lr

Gedrgia—

Miscellaneous freight loading totaled 287,430
ears, a decrease ol
preceding wedk, and a decrease of 103,169, cars,
below., the corresponding week in 1945.

13,140

To Feb. 15

340

1,928

•

670

,1,704

1,863

Gainesville Midland

507 cars below the

V 726

1945

153

4,032

422

;—;—

Columbus & Greenville
Durham 8c Southern.
Florida Bast Coast
;

*'<'

862

4,468
>

1946

i 289'-

t
15,336

•

15,807

NYSE Short Interest

Received from
Connections

1944;

395

ifc'M t

Line———.

Cllnchfield—

1945

455

Central of Georgia
Charleston & Western
Carolina

cars or

1946

Atlanta, Birmingham 8c Coast

an¬

Loading of
6,186

Total v:"".'■
Revenue Freight Loaded

Atl. & W. P.—W. R. R. of
Ala..

Feb. 21".
This was a decrease below; the
corresponding
week of 1945 of 77,649
cars, or 9.9%, and a decrease below the same
Week in 1944 of
67,183 cars Or 8.7%.
•

Total Loads

Rallroadi

Raothern Dlstrlct-r'. -v ,'i."& J ,V"
Alabama, Tennessee 8c Northern—.
:

freight for the week ended Feb. 16, 1946

revenue

707,054

FINANCIAL CHRONICLE

For the

year-to-date, shipments
reporting identical mills ex¬
ceeded production by
10.3%; or-»
of

ders by 13.6%.

Compared to the average cor¬
responding week of 1935-1939,
production of reporting mills was
4.2%
below;
shipments
were
14.3%
below.

below; orders
^

•

were

24.1%

with

1890

the

Western

Items itboiit

Banks,

with

ated

T rust
Companies

the Provident

Savings

Bank & Trust Co.
.

bank

The

established

was

iri

1900, and within a year the late
B. H. Kroger, grocery chain magregular hate, became - associated with it.
office of non-depositors ' during
It was only three months late?
•>
Guaranty Trust Company of New banking hours.
that Mr. Kroger brought Mr. Van
York, which has been in tem-{
Cornelius V. Coleman, Execu¬ Lahr into the organization, and he
porary quarters for more than five1
tive Assistant of the New York had remained with it ever since.
years due to bomb damage, moved
When Mr. Kroger retired from
back
on
Feb.
25
to
renovated Savings Bank at 8th- Avenue and
14th Street, New York, died on
active participation in the bank's
premises at its former location, 32
Mr. affairs, Mr. Van Lahr, who had
Lombard Street, E. C. 3. The in¬ Feb. 18, at the age of 47.
been
Vice-President,
was
ele¬
terior of the building had been Coleman was a well known lawyer
The. main

London

...

demolished in November,

this

announced

1940, by

Fortunately it
was
not fol¬

direct bomb hit.

lowed by fire and

resulted in no
casualties. Pending the availabili¬
ty of labor and materials for re¬
construction, the office conducted
its operations during the remain¬
Birchin Lane,

der of the war at 11

with

entrance through 67

Lom¬

The company's Lon¬

bard Street.
don

office, established in March,
1897, was one of the first offices
of any American bank in Europe.
During two world wars the Lom¬
Street branch has remained'

bard

and in addition to maintain¬
ing continuous service to Amer¬

open,

ican and British commercial inter¬
it

ests

also

has

served

United

ficial

of¬

depository

States

and assisted American and Allied

sonnel

military

and

Governments

ties. The Guaranty also

Lon¬
Kings-

has

don office in Bush House,

which

way,

established 25
has
complete

was

ago,
and
branches in Paris and Brussels.

years

turns

Bankers Trust Company
York

New

Garland H. Hayes re¬

Col.

Lt.

Vice-

Assistant

President in the Corporate

Trust
Department. Mr. Hayes attended
Washington and Lee, the Universi¬
ty of Richmond and studied law at
He

School.

Law

the

Richmond

was

with the Bankers Trust Com-

1931

pany.from

June of 1942 to

Bankers

Gunnell,

Mr.

F.,

Bankers

Assistant Vice-Presi¬
Gunnell, recently a

Liuetentant k: Colone 1
U.

lett

the election of Robert C.

nounces

dent.

until

join the Air Force.
Company an¬

Trust

July

joined

Trust

the

staff

Company

went,
into the Army in March of 1942.
After graduating from Dartmouth,
of

1928.,

ministration.

graduation from Holy
Cross College and Fordham he
practiced law in New York with
the Wall Street firm of Earle &
Rust.
Before joining the New
York Savings Bank in 1944 Mr.
Coleman
was
assistant to the
After his

York

president of the East New
Savings Bank in Brooklyn.

of Business Ad¬

He is at

Patchogue Citizens Bank
Company of Patchogue,
N. Y., a state member, has changed
its title to the Patchogue Bank,
effective Feb. 2, 1946.
that the

Trust

iiiii«ii'ifi iivii

Feb, 19

The Boston "Herald" on

reported that capital funds total¬
ling $375,000 have been received
by the Waltham Citizens National
Bank which completes payment in
full of subscriptions to its shares,
it is announced by Paul W. Bartel,
President. He said that remodel¬
ing of the space to be occupied by
the bank in the Parmenter Build¬

ing at Moody and Felton Streets is
expected to be under way in the
hear future.
■

that the Board

announced

elected

has

rectors

•

that the directors of the Grace Na¬
tional

Bank

voted

idend

oh
,

favor

New

York

have

stock

div¬

$250,000
June 28,
and

to be paid
to
call
a

special meeting pf the stockhold¬
ers

for the purpose of authorizing

1925

As auditor

military service.

from

Comptroller.':;

mately 9.09% and will be paid in
lieu of the regular cash dividends
of 6% per annum,'payable 3% on
March 1 and 3%

Sept. 1. The
will be

old

the

tional Bank of the Republic.
advices added:

The

At present he
Provident

Director

Association;

the

member, Board of Directors and
Executive Committee, St. Louis

Execu¬
tive Committee and Treasurer, St.,
Louis United Service Organiza¬
War

Chest,

member,

and

Francis

Reinhart,

& Trust Co. of
on

Feb.

18.

Philadelphia, died
was 65 years of

"Evening

Philadelphia

The

Bulletin" states that Mr. Reinhart

the West

when he joined

End Trust

Co.

This was merged

into the Land Title Bank in
In

1927.

1933, Mr. Reinhart was elected

Treasurer of the bank,
a Vice-President.

election

The
Fisher

and in 1940

Howard

Secretary of the Fideli¬

Pittsburgh,

announced on Feb. 19 ac¬
cording to the Pittsburgh "Post
Pa.,

was

succeeds

Power,

Frank

Mr. Connett is a member

tions.

dinner which honored

the

and

Bank

First National

employees of the

Kentucky

Trust

Company of Louisville, Ky., who
have been with the banks for a

E. Chester Gersten,

the

Public

Bank

and

York, announced
on Feb. 21 that Joseph
W.jPercival, who heads the Purchasing De¬
partment, was appointed an As¬
sistant Cashier.

;

Savings

dustrial

and

conference

was

ap¬

pointed by President Coolidge to

Lloyd B.
discharged from the Marine Corps,

the; International Economic Con¬
ant Vice President.
ference at Geneva, Switzerland.
"Constitution"
Board

The

National

First

Directors

Bank

the

St.

the

Louis

resignation of

Mr., Hawes' banking ex¬

service.

Feb.

that

it is his purpose

to relax and

rest, and to do many
which he has heretofor

Williami C;

tirhe^fpt;

has

been

First

elected

than 150,000 square feet. The 300
bank employees will have at their

disposal recreational facilities,

dining room and a small but wellequipped hospital.
j
'

The Atlanta

Jan.

27,

with the bank in 1935.

President

and

di¬

rector of the First National Bank,

Lauderdale, Fla., while W. W.

Ft;

McEachern

elevated to Chair¬

Executive'Committee

of 'the

man

was

the director's

meeting held on
Other advancements an¬

Feb. 15.

nouncedv Were ; those;£ ofAlwen
Neuharth

Vice-

Executive

shown in 1945

£36,355,940

President, E. R. Mackay to Assist¬
ant Vice-Presiderit; John C. Mon-

yea?

Treasury Deposit receipts
£290,000.000 at the latest
against £315,000,000 while

ago.

were

date

investments

Charles L. Pierce of Palm Beach
elected

was

*from compared with £31,969,611

which this is learned, reports that
Mr.
Hatcher
became
connected

was

balances with other British banks

and cheques in course of collection

to' be

shown

were

£221,223,111 against £204,087,424
which4 £192,063,756
against
£ 178,743,795 represent obligations
of or guaranteed by th$ British
of

Loans and advances

Government.

£116,974,-

at the end of 1945 was

130

compared

ixit,T944;

with

£104,232,012

x;::,v,-,t

Debit Balances

H.Y. Stock Exchange

officers
The New York Stock Exchange
elected were Arthur H.
Ogle,
Mr. Hawes was born in Coving¬ Vice-President; George E. Hossler, announced on* Jan. 17, that as of
ton, .Ky., and is the grandson of Assistant Cashier; and George W. the close of business on Dec. 31,
Richard Hawes, Confederate Gov¬ English, Attorney. Mr. McEach¬ member firms of the New York
ernor of Kentucky.
His first job ern relinquished his duties to Mr. Stock Exchange carrying margin
was

in $t. Louis as office boy for

the Mississippi River Commission.
On Jan. 1, 1893, he secured a po¬

sition with the;: oM theibkal Na¬
tional Bank,, which in 1897 was
succeeded by the Third National
Bank.
In 1911, he was elected
Vice-President of the Third Na¬
tional

aghan

Cashier;

new

Bank.

1919, when the

on Feb.
15 because of ill accounts reported total of cus¬
health, but will remain as a di¬ tomers' het debit balances on Dec.
rector and head of the Executive 31 of $1,138,314,378 compared with
Committee. The new President, $1,095,239,941 on Nov. 30. These

Pierce

retiring

figures include all securities, com¬
modity and other accounts. Do
not include debit balances in ac¬
of Palm Beach in 1919. He joined counts held for other firms which
the
staff of the First National- are members of national securities
Bank in Palm Beach as Assistant

organized, through consolida¬
tion of the Mechanics-American
National Bank and the St. Louis
Union Bank with the Third Na¬

Cashier in 1937, after

several

years

clothing busi¬
ness
in West Palm Beach.
Mr.
Pierce served in all departments
mercantile

the

exchanges, or "own" accounts of.
reporting .firms, or accounts of
general partners of those firms.
Credit extended to customers on
U. S. Government obligations was

after

service. Foster M. Mohney,

world and in civic life in St, Louis.

served

In 1913, he

sonal and automobile loans which

of the Association of Reserve City

loaned

Bankers.

20,000 personal loan
tomers in. the Palm Beach

The Capital Bank of

Cleveland,

18 its
recent stock issue of 5,000 addi¬
tional
shares at $45 had
been
oversubscribed.
The
s a le
in¬
creased the bank's capital and sur¬

Ohio,

announced

Feb.

plus to $500,000 according to ad¬
vices in the Chicago "Journal of

was

elected President

During World War I,

Chairman of the Bankers

District for the Liberty Loan
Campaigns; in 1915, President of
the Missouri Bankers Association;
in 1919, President of the Ameri¬
can Bankers Association; in 1932
to 1937, President of the St. Louis

both

Feb. 12 at the age

had

ber

President of the bank.

for 55 years, the Cincinnati "En¬
quirer" reports, in which it was

■

Clearing House Association.
is

Leo J. Van Lahr,

alcn

died on

of 73 years. He
been in the banking business

ctafpH

He entered the

•' '•

■1

banking profes-.

member

the

Reconstruc¬

Finance' Corporation's

tion

Ad¬
visory Committee for the St. Louis
District.

Mr.

Hawes

Commerce.

Mr.

Connett

practiced law in St. Louis for 20
before being elected VicepresHent of the old Liberty Cen¬
years

tral Trust Company

in, 1922, When

cus¬
area.

claimed Mr. Pierce for

The Navy

serve

$6,000,000

over

than

Committee of the 8th Federal Re¬

ple of that neighborhood, it is announced
by Robert H. Barnet,

Commerce."

the committee for per¬

Wiedt, who started as a messenger
in
1901, was named Assistant

was

•

Mr, Pierce, has had long experi¬
ence in the banking field, having
commenced as a clerk in the Bank

First National Bank in St. Louis
was

past
President of the St; Louis Cham¬

Hawes.

Co., of Cincinnati, Ohio,

The Gov¬

Myers, Cashier of the Kentucky
Trust
and
John H,: Stockhoff,

has returned to the bank as Assist¬

eral 4ncome tax returns to the peo¬

agent will be on hand
through March 1st, and can be
consulted by both depositors and

yen, Assistant General Manager
for Ontario, announced at Toronto

President of the
Provident Savings Bank & Trust

ernment

forward with all

now go

Lloyds Bank Limited, London,
England, reported in its statement
tion. He also had served as Presi¬
Vice-President of the First Na¬ of condition for the year 1945 that
dent of the United States Cham¬
tional, were guests of honor. Each total deposits were £863,316,010
ber of Commerce, the Chicago As¬
has served 42 years with his re¬ and total resources £926,339,959
sociation of Commerce, and the
spective institution.
compared respectively with £819,National Metal Trades Associa¬
273,880 and £ 876,918,242 the pre¬
tion.
vious year.
Cash on hand and
Robert Strickland, President of
He was a director, of Kelly Steel
with
the
Bank
of
England
Georgia,
Works.*1 Mr. O'Leary was a mem¬ the Trust Company
amounted in 1945 to £94,835,289
Atlanta, Ga., announced recently
ber of President Wilson's first in¬
against £93,628,018 in 1944 while
that
Hatcher, recently

Bank of New
York has arranged for an Internal
Revenue agent to be at its up¬
town office, First Avenue at 81st
Street, to give free advice on Fed¬
Irving

will

possible speed, W. T. A. MacFad-

years' tional Bank, he was elected Vice- of the bank, was elected Cashier $196,386,679 at the end of Dec.
Jr.; an President. Mr. ; Hawes has occu¬ in 1939 and Vice-President on against $181,192,519 in Nov. (This
employee since 1928,: was elected pied many positions of honor and Dec. 6,1940. He was head of the amount is included in the net
Assistant Secretary, and Karl W. responsibility
in
the* banking commercial loan department and debit balance total,)
who

President of

National

Trust Co. of New

war,

than

by the demands of

ago

years

quarter of a century, Embry Lee

Treasurer.

date of the special meeting
announced later,

halted

headquarters,
six

■

O'Leary was President of
the American Enterprise Associa¬

Vice- Vice-President and a Director of
the First National, succeeding Mr.

President of the Land Title Bank

Montreal's; hew; 16-story;Ontario;

■

Mr.

Connett

Gazette" which also said:

$3,000,000. The

Director of the

President

been

neve? had

will be increased to

dividend will amount to approxi¬

ties.

"Tribune" was"

to Paul D. Williams,* things

he will report

ty Trust Company of

necessary

from

been identified with other activi¬

recently

returned

and

increase in capital
$2,750,000 to $3,000,000. At
the same time the bank's surplus

the

•

nati

perience has been entirely with
Mr. Fitz¬ the First National Bank and its
the bank predecessors.
Mr. Hawes stated

Fitzgerald as Auditor.
gerald has been with
since

of Di¬

Richard

the

Feb. 21. The building, located
King and Bay Streets in ToronClearing House Association of the Board of Directors of the to, will have four floors for use
and. was a Trustee of the Fleisch- following, organizations: First Na¬ by the bank itself, including a
mann Foundation.
tional Bank in St. Louis, St. Louis banking space close to 150 feet in
Public Service Company, South¬ length, and 12 floors for occu¬
John
W.'
O'Leary,
Chicago ern Acid & Sulphur Company pancy by other business organiza*
banker and industrialist, died on Potosi Tie & Timber Company and tions.
Designed to house more
Feb. 8, at the age of 70.
Mr. Mountain Valley Water Company. than 1,400 persons, the building
O'Leary, according to the Chicago
will have a floor area of -more
',o
^
,/*' "f**< >3

terms as President of the- Cincin¬

of Richard S. Hawes, Senior ViceCorn Exchange National Bank and President, who will, retire March
Trust
Company •'of Philadelphia, 1st after more than 50 years of

1910,
Feb.

thereby % increasing

David E. Williams, President

had been active in banking since

; <

Van Lahr had served two

Mr.

has announced

age.

announced

was

the Chicago Trust Company and Na¬

The Board of Governors of

Federal Reserve System announce

of the bank.

was

January* IT, 1928.

That

Chicago Great Western RR.; and

present asSigned to the Fifth. Avenue office

vated to the presidency.

had

Mr. Gunnell attended the Harvard
Graduate School

loans.

handling of new mortgage

per¬

financial capaci¬

many

public speaker, and had re¬
ceived? a law degree from Fordham University Law School.
In
the bank he was in charge of the
and

shares of stock at $20.00 per

share,
capital
from $100,000 to $200,000 and the
surplus account from $152,500 to
$252,500. ;The Board of Directors
civic affairs.
He has served as consist of: Wiley" R, Reynolds,
Chairman pf the Building Com¬ Chairman; Wiley R. Reynolds, Jr.,
mittee which built the present W. W. McEachern, Arthur H. Ogle,
Missouri Athletic Club, and later Bert C. Teed, John B. Dye, Floyd
Wray, George W. English, Earl P.
was President, Chairman Metro¬
Lewis, E.
Moore,
and
politan St, Louis Relief Commit¬ Jones,
r
tee; President, United Charities of Charles L. Pierce.
St. Louis, and Chairman, St. Louis
Contruction
of
the
Bank
of
Housing Authority, and has also

the Liberty Central was merged
helped with the First National Bank in
to organize the Columbia Bank & St. Louis in 1929, he then became
Savings Co., but shortly after the a Vice-President, of that bank* Mr,
turn of the century became affili¬ Connett has long been active ;ip

sion

Bank & Trust Co. Later, he

Thursday, February 28, 1946

THE COMMERCIAL & FINANCIAL CHRONICLE

1148

Ensign during the

♦Cash

hand and in banks in

the United States was

$312,154,327
$300,-

Dec. 31 compared with

763,529

Nov. 30.

*Total of customers' free

credit

his

balances, stood at $651,683,490 on
Dec. 31 against $639,017,933 at the
end of November. (This included
free credit balances in regulated

banking career at the First Na¬
tional Bank in Lake Worth in

commodity accounts, but does not
include free credit balances held

wars,

first

and

war

Lieutenant

Commander in the second.

Hossler

Mr.

1941,

later

National

commenced

moving

Bank

the

Palm

First
Beach

for

other

bers

where V he
was
made Assistant
Cashier and manager of the bank's

changes,

Air Base Facility at Boca
Raton Field. Mr. McEachern stat¬

firms

Army

have increased
over
$1,585,000 since Dec. 31 to
$12,735,000 as of Feb. 14, 1946.
He. also
said the
stockholders
ed

the

fted ,to

held for
or

firms

which

are

mem¬

national; securities

ex¬

free credit balances
the accounts of reporting
or

general

those firms.)

partners, of
y

/-•

deposits

sell «an! additional 10,000

revised to com¬
similar
information
Federal Reserve

♦Form of report
pare

called

with
for

Board.' 4 4

by
•* i

I" S:

Full text of Commercial and Financial Chronicle : February 28, 1946, Vol. 163, No. 4468, Section 2

FRASER