The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
«MN J i
mpESTABLISHED OVER 100 YEARS
Final Edition
„
ln 2 Sections-Section
bus. adm;
I
library
Volume
New
Number 4454
163
York, N. Y., Thursday, January 10, 1946
Britain to Reduce
Price 60 Cents
The
Dr. Einzig
By JOHN D. SMALL*
ROBERT A. SEIDEL*
By
Points Out That in Order
Exchange Con¬
trols. Holds It
Act in Order to Return to Normal Business Conditions.
Requirements of the Bretton Woods
Plan, It Is Nec¬
essary
to Al¬
ter
Extensively
Present British
Will
Be
Ex¬
tremely
cult
Diffi¬
to Enforce
Restrictions
Problem
Can
Paul
Sterling
Be
Made
and That Brit¬
ish
Government
Guarantee
Must
Exchange Rates to Importers and
Exporters if Trade Is to Expand.
:
LONDON, ENG.
cepted
the
—
Bretton
Having ac¬
plan,
Woods
and
having agreed that the tran¬
sitional period for its full applica¬
tion should be reduced from five
to 12 months, the Govern¬
ment is taking steps to prepare its
application.
To that end it is
years
to
necessary
terations
make extensive al¬
in
the
change control.
considered
system of
That system
ex¬
on
/
t i
these
i
n u
for
Index
of
Regular .Features
on
purpose
during the
n
Due to
"Withholding" to Avoid Excess Profits Taxes, and Lays
Unprecedented Demands, Strikes and Other Production
v
Interruptions as Well as Fear of Inflation. Supports OPA's System
of Price Controls as Preventing Skyrocketing Prices and Describes
the Efforts Made by CPA to Increase Production of Seriously Short
Commodities.
Says the "One Single Cure for the Dangers of
Inflation and Unemployment Is Sustained Ail-Out Production."
Blame
controls
i.
still
are
.1 "
r
Dr, Slichter Predicts
y
/
t
Is
lit
'V
force
q
a
y
deterioration,
y- Contro Is
that force
items
Robert A. Seidel
of
out
production.
Controls that encourage
subter¬
fuge.
Controls
version.
that
,y-tv*'
Controls
doing
■:'.yy
the
vv, - ?:
the
raise
recon¬
cost
a
\ ;;;
that
"
/:y
keep
us
from
Mr.
by
■*yy.:;
General
Reconversion Situation io:
and
near-labor
trouble.
we
need
d
you
b tless
o u
would like to
know
why.
There
are
number
a
of
For
reasons!
example, dur¬
ing the time
that half of
J. D. Small
our
national industrial
be diverted to
energy had to
it was necessary to stop
*An
ciation,
H.
by Mr. \ Small at
Convention of the
New York
/_
(Continued
Slichter
on
Asso¬
City,
Jan. 7,
:-v/:,/r
page 140)
;
The chief economic problem of the country will be to
National Retail Dry Goods Asso¬
ciation,
Gaumont British
"A" &
New
Ordinary Shares
Jan.
City,
York
1946.
♦Address
7,
by Professor Slichter before the National Retail
on
page
■,./
(Continued
-
(Continued
Dry Goods Associa¬
tion, New York City, Jan. 7, 1946.
^y;;y/
156)
\
162)
page
on
m
Aeroyox Corp. *
Nii-Enamel
*
NEW YORK STOCKS, INC.
Alaska Airlines
Municipal
Bond
Brokerage
COMMON STOCK
Prospectus
request
on
Prospectus
on
request
SER
yy
Hirsch & Co.
Successors
HIRSCH, LILIENTHAL &
CO.
Members New York Stock Exchange
and, other Exchanges
^
'•
2-0600
Chicago
'
Teletype
Cleveland
Geneva.
INVESTMENT
64 Wall
London
and Dealers
.
Prospectus on Request
SECURITIES
'
\.i
'•
*•••
•
'
•
'
'
''
•
■
J
.
'
;
>'■
Bond Department-
d
1927
Street, New York 5
BOSTON
NY 1-210
(Representative)
Established
;
.
25 Broad St., New York 4, N* Y.
HAnover
for Banks, Brokers
R. H. Johnson & Co.
to
HUGH
/.
PHILADELPHIA
Albany
Buffalo
Syracuse
Dallas
Wilkes Barre
Baltimore
Springfield
Woonsocket
Troy
Pittsburgh
48
>
'
INCORPORATED
WALL STREET
NEW YORK
Hardy & Co.
^
COMPANY
and
LONG
W.
Members New York Stock
Exchange
York Curb
634 SO. SPRING ST
30 Broad St.
LOS ANGELES 14
:
Tel. DIsrby 4-7800
3
THE
CHASE
Exchange
Members Nets
..'y
.
New York 4
Tele: NY
NATIONAL BANK
OF
THE
CITY OF NEW YORK
1-733
Acme Aluminum Alloys, Inc.
Common
CORPORATE
BOND
'/. FINANCE
V
SECONDARY
BROKERS
&
Copy.
New
Preferred
The Firth Carpet
Co.
Common
90c
Conv. Preferred
"
;
MARKETS
England
Public Service Co.
Solar Aircraft Company
Analysis upon request
Raytheon Manufacturing Co.
$2.40 Conv. Preferred
Prospectus
BULL, HOLDEN & C9
MEMBERS NEW YORK STOCK EXCHANGE
Kobbe, Gearhart & Co.
INCORPORATED
,
Members N.
14 WALL ST.. NEW YORK 5.N.Y.
TELEPHONE-RECTOR 2-6300
Y.
Security
45 Nassau Street
Tel.
REctor
2-3600
Dealers Ass'n
New York 5
Teletype N. Y. 1-676
Philadelphia Telephone*
Enterprise 6016
on
request
'
HART SMITH & CO.
Reynolds & Co.
Members New York Stock
Exchange
52
120 Broadway,
Telephone:
New York 5, H. Y.
York
WILLIAM
Bell
Security
ST., N. Y. 5
Teletype
NY
1-635
New
and other
Dealers
Assn.
HAnover
2-OS30
Teletype NY 1-395
REctor 2-8600
New York
Bell
ira haupt & co.
Members
Members
New
111
York
REctor
Yorh
Stock Exchange
Principal Exchanges
Broadway
New
6
2-3100
10 Post Office Sq.
Boston 9
Hancock 3750
Tele. NY 1-1920
Montreal
a
address
Annual
1946.
Prof, S.
war
making
National Retail Dry Goods
Controversies
heights.
to¬
and
we
the policies of OPA will undoubtedly reach
new
!l still
are
seriously short
of many things
35th
of
V
However,
day
Outlook
over
retail
.
Christmas.
Considerable Increase in Civilian Goods Pro¬
Seidel at
Conference
Annual
The
in
sales this past
The year 1946 will be one of many Stresses,
strains, and worries.
There will be much labor
trouble
address
35th
I.
f
witness the '
rise
(1) Maintenance of High Levels of Income; (2)
Breaking'Retail Sales; and (3) Maintev
nance
of 4 High Level of Employment.
Holds*
That Throughout 1946 Demand for Goods Will y
Exceed Supplies and Lays This Partly to Inade¬
quate Ceiling Prices, Competition for Certain Raw y.
Materials by Producers of Different Goods, and y
Shortages of Skilled Laborers.
Sees Need for
More Plant Capacity to Maintain Full Employ- y
ment and Fears Disorderly Rise in Prices Unless
Government Has a Balanced Budget.
Favors Re¬
tention „of OPA "Six Months Too Long," Rather
Than Abolishing It Too Soon. y:^/H.:. ■yy/'v-,;l;'
of
job.;:
our
*An
hamper
that
living. y-5'y'/■//■'
168.. ;■■/
;
...
Record
"AJW|
>■;<<
r o
that
u
as
''-'yy:
■
o
y.,v •-■•/■;.
•
things to sell,
.
production,
is
still
considerable
there
abundance
SLICHTER*
duction in 1946 and Attributes Favorable
par¬
r,
on
SUMNER H.
Lamont University Professor
/
/
Uv' -'/■ ' Harvard University
all
retard
C
By
as
Controls
that
.—<#
Easiness Outlook fox 1946
•'
resist
a
some
a
g
group,
we
must
oppose
inflation
well to point out that, while the task ahead is diffi¬
shortages, yet, viewed from a broad perspective,
It might be
cult because of
.
However,
controls,
ticularly:
on
:—_____
a
and
Asserting That, Viewed Broadly, There's a Considerable Abundance
of Things to Sell, Mr.. Small Points Out Reasons for Acute Short¬
ages in Certain Lines.
Refutes Charge That Some Shortages Are
'
^
Price
war.
Some controls
Retailers favored them.
the
Controls
page
useful
a
necessary,
was
144)
page
served
time being.
reasonably watertight
(Continued
/
necessary, and
retailers favor
Must
Convertible
Einzig
were
con
Tackled
Before
OPA
on
Capital Trans¬
fers, but That
Be
.
Civilian Production Administrator
->.r-
y*'■'/>.w. T. Grant Co.
Mr. Seidel Accuses OPA of Following Unrealistic, Theoretical and
Unfair Approaches to Pricing Problem. Scores OPA Administrator
Bowles' Optimism and Asserts OPA Is Working Against Rather
Than for the Consumer.
Says Prices Are Not Being Kept Down
and Gives Example of the Fallacy and Inequity of the "Cost Ab¬
sorption" Principle by Producers and Distributors. Holds All In¬
dustry Finds Itself Out of Step With Bowles and Urges Retailers io
Comply With Terms of the Ameri¬
can
Loan and to Implement the
"/■'•
y y ;yy:/*.;y
y
to
'■/
Copy]
Goods-Shoitage Situation
Exchange Gontrols
By PAUL EINZIG
a
Toronto
Direct
Private Wire to
Boston
THE COMMERCIAL & FINANCIAL CHRONICLE
122
Trading Market* in:
Truman Places Blame For Reconversion
Rademaker Chemical
S.
U.
v
Phenolic
American
Diesel
Prevent Strikes arid Sees Danger From Either Deflation
Lear inc.
tion if
KING & KING
New York
40
of Jan. 3 delivered his
first radio address of the year, in
which for a half-hour period he
Dealers, Inc.
plained
bitterly
of
HA 2-2772
of
.
port by
program
speed
•'
;
-
U. S. Senator from Ohio
„
Attack
.{'
employment, and
New Orleans,
Direct wires
Progress Under Oar Constitutional System of Free Enterprise.
Holds Full Employment and Health Programs as Socialistic and
j
the
lature,
}
Ignoring the Costs of 'His
Recommendations. Says Labor Legislation Requires Careful Con¬
sideration and Criticizes President's Fact-Finding Bill as Not Pre-
r
espe¬
venting Strikes. ,}}.}
cially the com¬
hand¬
mittees
Stock Exchange
ling his pro¬
posed
meas¬
ures,
for de¬
Y. 5
lays and inac¬
L
1-1227
in his address
the
SALE
ment
v-:-;
on
in
Company}
Fellow Americans:
Vanderhoef & Robinson
Curb. Exchange
York
31 Nassau Street,
New York 5
Telephone COrtlandt 7-4070
Bell
,.v
System Teletype.NY 1-1548
As you
stitutional
report
to
the
Bankers & Shippers Ins.
,}
v*
vv'-
dent
Caribbean
}
Sugar
20 Pine Street, New
Robert
have
A.
Bought—Sold—Quoted }
Congressmen have been
JvfC flONNELL & CO.
v
:'h-'
v
;
Yorfc Stock Exchange
New York Curb Exchange
120
BROADWAY, NEW YORK
Tel.
Stamped Preferreds
Members
i
.
..
that
delayed the meas¬
which he has recommended.
is
clearly
attack not on
an
on
the Democratic
*Address of Senator Robert A.
Taft, Chairman of the Republican
Steering Committee of the Senate,
delivered
over
the
National
Broadcasting
2-7815
REctor
;
President' complains
Congress, but
New
Boston & Maine R. R.
to
has
Company,
Jan.*
1946, 10:45 p.m.
Kaiser-Frazer
Missouri State Life Insurance
We Maintain Active Markets
Oxford Paper Co.
Union Asbestos & Rubber
ABITIBI POWER &
Common
■
andCompcm^
Members N.
37 Wall
Bell
Y.
1-1126
&
Denver Rio Grande, Old
Pfd.
with for¬
affairs and other matters
have been passed. The Senate and
the House have been in almost
continuous session until late hours
day considering a vast flood
every
of
I have never seen
a time when so much hard legis¬
lative work has been done as in
115
is
It
true
that
measures
many
President
have not been passed. That is be¬
cause
half the Democratic Party
and most of the Republicans, and
I believe a large majority of the
people,
-
the
by
disagree
'
political philosophy.
Members New
64
WALL
York Curb Exchange
'
i
ST.
Teletype NY 1-1140
NEW
YORK
6
HAnover 2-9470
Amer. Locomotive
Brill Corp.
7% Old Pfd.
7% Old Pfd. }}}
S Cayuga & Susquehanna
}; N. Y. Lack. & Western
Western Pacific 5s, 1946
Minneapolis & St. Louis
a" issues
'.VV,
'•
1 Wall St., New York 5,
DIgby 4-7060
N. y.
Teletype NY
i-955
Howard Aircraft
and
is hope¬
:
Home Stores
Macfadden Pub. Inc.
Pfd. & Com.
;
between • those who
the CIO-PAC program on
split
issue/ and those who think
made within the
of Constitution¬
and
Government
al
Gude, Winmill & Co.
':}.'};:.'}}
.
The Democratic Party
progress must be
American system
Teletype NY 1-672
Frank C.Masterson & Co.
fundamentally
Truman's program
Mr.
with
follow
NEW YORK 6, N. Y.
BArclav 7-0100
Teleohone
Tudor City Units
Members tiew York Stock Exchange
three months.
recommended
lessly
and Other Principal Exchanges
BROADWAY
Federal Mach. & Welder
legislation.
the past
■r
ff}
Goodbody & Co.
Paul, Old Pfd. & Common
(Va.)
Common Stock
.
eign
every
1127
Members N. Y. Stock Exchange
St.
4,
,
Has Congress
Democrats Divided on Program;
}
STEEP ROCK IRON MINES
Hanover 2-4850
Teletypes—NY
seen ' an
important bill
passed which was not'introduced
by a Democrat.
In short; this is
not a fight between-the President
and* Congress, it is a Democratic
family fight.
his
Canadian Securities Dep't.
Security Dealers Assn.
St., N. Y. 5
DREDGING
NORANDA MINES
.
Teletype NY 1-1919
Central States Elec.
never}
MINNESOTA & ONTARIO PAPER
Preferred
&
in U, S. FUNDS for
PAPER, Common & Preferred
BULOLO GOLD
United Piece Dye Works
Bell System
by committees is
upon
number of hills dealing
This
York 5
Teletype NY 1-1843
speed
considered
are
have been jn the Senate, I have
I
successful method of ac¬
Congress
Telephone: WHitehall 3-1223
bills
been negligent or
slow in enacting legislation? The
President
admits
that
a
great
ures
York Curb Exchange
Broadway WHitehall 4-8120
procedure on the floor of the two
Houses.
During the seven years
Taft
complishing their purposes.
It may be pointed out that Sen¬
The
Stock
H. G. BRUNS & CO.
Bell
Conv. Pfd.
4%%
Members New
50
The
caucus.
which
those views are.
Pressed Steel Car
Panama Coca Cola
Common
or
Members New York Stock Exchange
almost entirely in the control of
Democratic chairmen. The
leaders control the
not fohnd that
wis6
committee.
every
people as their rep¬
represent
their
views on legislation, and do not
need telegrams from Truman sup¬
porters in order to know what
Stock
Common
...
Edward A. Pureed & Co.
these
the
^by
people,
resentatives
Preferred
&
Warrants
Democratic
elected by the
Campbell
Common
t s,
Presi¬
ators and
Common
A. S.
e n
were
elected
(Continued on page 147)
Byrndun Corporation
Democratic
those
even
•'
■
pro¬
and acted
who
Demo¬
committee}; chairman, is a
partisan Democrat selected by the
Pres i d
Tonight I-am speaking directly
Stock
Capital
Textron
lEvery
a
with
a
convenes.
Amalgamated Sugar
Greater N. Y. Industries
heavy Democratic
a
on
lation. Former
Congress soon after it re¬
the
to
is
majority
of legis¬
gram
Congress } an¬
?
enact
there
land
Congress
Truman
all know, it is the con¬
duty of the President
to
pres¬
bear
to
nually on the state of the Union.
That regular report will be made
V
.
■
pletely organized both Houses. It
elects the presiding officers.
It
has
chosen
all
the committees,
every
on
>;
;
The
the
to
to
to
sure
more
In the Senate there
17 more Democratic Senators.
Democratic Party has com¬
are
ap-
bring
Board" and other bills
relating to economic and social
security.
The full text of the
President's radio address follows:
Common
Signal
:?};v}}■ U. S.. Sugar
Republicans.
possible
but
but
Finding
'
New
pealed
50
are
crats in the House than there are
the
and
people
the
Committees
shelved his "Fact-
have
There
the
on
of
Union,
Senate and House
which
.Members
gress
state
v--
sponsibility not only on labor
management factions, which,
President
stated,
promised
failed to cooperate with him,
W. & J. Sloane
branch officei
our
<$>-
he
that
report to Con¬
President Truman
recent ,-y"■ .i-.'
major industries and laid the re¬
400 shares
to
Automatic
night, the President of the United States, without waiting for
of Congress to comply with the Constitutional require-
Last
widespread increase in strikes
FOR
:;}f}-f^f}-f-}f:f}
La.-Birmingham, Ala.
the opening
tion. He noted
WOrth 2-4230
-
NY 1-1557
Pressurelube
»_
Communistic and Accuses President of
f
national legis¬
Common & Preferred
Exchange
St., New York 4, N. Y.
on
an
-
Teletype N. Y.
Quoted
Request
HAnover 2-0700
Party, Senator Taft Denies That Congress Has Been
Negligent in Enacting Legislaticr. Asserts Democratic Party Is
Hopelessly Split Between a CIO-PAC Program and a Plan of
and
version
•
Calling President Truman's Radio Address to People
recon¬
blamed
Bell
on
Members New York Stock
}:
<
the Democratic
full
coal
a;-},.
'
25 Broad
Con¬
of a
t o
gress
120 Broadway, N.
—
SteineMouse&Co.
HON. ROBERT A. TAFT*
By
*.
;
sup-
lack
elk horn
A Democratic
co m
BBLZ. TELETYPE NY 1-423
Members Baltimore
Sold
—
Analysis
Truman on<^
President Harry S.
Members
Bxchangre PL, N.Y. 5
Bought
the* evening
Security Dealers Ass'n
Nat'l Ass'n of Securities
& CO., INC.
or
Urges People to "Prcd" Their Congressmen.
Economic Controls.
■
P. R. MALLORY
Infla¬
Pressure Groups Prevail and Calls for Indefinite Continuation of Wartime
Not Uniting to
Established 1920
Snags
Says Congress Is Primarily Responsible Because of Failure to Enact Program for
Full Production and Full Employment.
Blames Also Management and Labor for
Sugar
Hill
Thursday, January 10, 1946
it
first
prise.
At
which
way
page
on
enter¬
doubtful
was
Truman
Mr.
(Continued
free
would
C. E. de Willers & Co.
Members New York Security Dealers Assn.
120 Broadway, N. Y. 5,
REctor 2-7634
N. Y.
Teletype NY 1-2361
145)
Frisco, Old Pfd. & Common
Missouri Pacific, Old Pfd. & Com.
New Haven,
New
York, Ontario & Western
Old
Common
Rock Island, Old
Pfd.
Pfd.
&
&
*Circular
I
Upon
.'
•
.
•
■
•
•
.
•
.''V";
—
Western Union Leased Line Stocks
International Ocean Telegraph Co.
Sold
Pacific
& Atlantic
—
SOLD
—
QUOTED
Empire & Bay States Teleg. Co.
bought
•
J*G-White 6 Company
Members N. Y.
'
Simons, Unburn & Co.
Members New
25 Broad
York Stock Exchange
St., New York 4, N. Y.
HAnover 2-0600
Tele. NY t-210
74
Security Dealers Ass'n
HA 2-2400
Trinity Place, N. Y. 6
Teletype NY 1-376-377
Private Wires to Cleveland
Detroit
-
Pittsburgh
-
St. Louis
Telegraph Co.
Co.
Southern & Atlantic Teleg.
Bought-—Sold—-Quoted
WHitehall 4-4970
_
Request
Com.
Teletype NY 1-609
CORPORATION
,,
BOUGHT
Com.
Jefferson-Travis Corp.
DELTA AIR
Common Stock
Bought
Wellman Engineering Co., Com.*
G.A.Saxton&Co.,Inc.
70 PINE ST., N. Y. 5
Utah Southern Oil
Pfd. & Com.
Western Pacific
Old
For Banks, Brokers & Dealers
Kingan & Company,/ Com.
Segal Lock & Hardware, Pfd.
Seaboard Air Line
Old
Harrisburg Steel Corp.
Old Pfd. & Com.
INCORPORATED
37 WALL
STREET
Tel. HAnover 2-9300
Tele. NY 1-1815
quoted
Arnhold and S.BIeichroeder
NEW YORK 5
ESTABLISHED 1890
sold
INC.
30 Broad St.
wwii
3-Q2nr>
New York 4
Teletvpe NY
1-515
Yolume 163
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4454.
The Outlook for Interest Rates
J
{
By RAYMOND RODGERS*
.
'
j
'
Professor Rodgers Attacks the Theory That Low Interest
Under Conditions of Expanded Credit Encourages Inflation.
tends That This Theory Is Applicable Only Under a Rigid
Rates
Con-
j
j
Gold j
Standard Which Does Not Now Exist,
.
i
and That Recent Developments Deprive the Old Quantity Theory of Money of Much of Its
Potency. Says Inflation Will Be Difficult Due to Sound International Position of U. S. Money, Our Great Productive Capacity and
!■ Our
Have Little Influence
tion and That
on
j
\
Concludes That Inter¬
Capacity to Draw Funds From Abroad.
est Rates
Savings and Capital Accumula-
Money Market Is in Strong
r
Position.j.
"According to the book", interest rates should have gone up iri
the 1930's when the Government was spending billions more for leaf-f
raking
and
boondoggling
than
it
was
collecting
There
>
in
gone
Old shibboleths
up
have
the V;
ory
and the further fact
Government ;
war
terest
the
reached
of
orthodox
to¬
great
tal
one-;
quarter
of
is
the
turns
to
Men
Rodgers
;
of
9, 1946.
•
t-1 ^ (Continued
some
133)
;
one
of
suggests
Other.
the
j
;
Probably all
t of - us ' < here
some¬
about
housing,
: cause we
behav^
experiment
conf
•
on page
way or
term; sort
enough
Jan.
in
and
other,
World
*
.
-
thing
York,
WALL
United Artists
]
United Piece Dye Works
knowledge
it,! ' and
•
a
1
of
are
probably
inclined to
'prepare ? our-
H^EcUrl selYes. design
Frederick
j': vvand;
less
we
plan,
married, when
are;
un¬
ily more-qualified to discuss and;
criticize the architect's plans thari
of us, takes over.
It reminds'
I
one
rhe of
an,instance where
a young,*
Taylor Wharton Iron & Steel
recently
married man asked an
older friend of his how it was he
got; along so nicely, quietly, and.
as far as he coPld
observe, there
never were
any .arguments in the
family. The older man* said, "Oh;
Well,; we ; arranged all -that .20
years or more ago when we were'
married.,
On
all
unimportant
matters
it
was
agreed
wife ; would settle
that came up.
Of
!
any
that
L J. GOLDWATER & Ck
Members New York
39
Chamber
State
per-
of New
HAnover 2-8970
V
;
Commerce 4of
on
158) J
page
Self-Appointed
Legislature
By DR. FRED R. MACAULAY
Noting That There Are Two Divergent Schools of Thought Regard- }
ing Interest Rates, One Represented by Secretary of Treasury
Vinson Which Favors Low Interest Charges and the Other That
Higher Rates as a Means of Encouraging Greater Savings
and Investment, Dr. Macaulay Holds That, Because of Government
Favors
RUBBER CO.
,
Control, There Will Be Little Change in the Level of Either ShortTerm or Long-Term Rates in Foreseeable Future.
J - V
subject that at the present
attention of investors, corporations and the Gov-
The future trend of interest rates is a
time engrosses the
ernment to an3>
applied
Government debt steadily ap¬
unprecedent¬
to
degree.
i
,,
As everyone
knows, World
War
has
II
been financed
Gov¬
of
the
by
ernment ;
the United
States
at
an
rate
interest
not more than
2V2%
com¬
with
pared
4 % %
World
And
this
Macaulay
has
in
vast
Government
posr-war
ernment.
For
by
expenditures of the Gov¬
,
some
time,
the
therefore,
monetary control authorities have
used
a
complete technique for
keeping interest rates low. Among
other
things,; for example, the
TITLE COMPANY
CERTIFICATES
definite
low
rates
at which
would buy Government
Bell
Lawyers Title & Guar. Co.
N. Y. Title & Mtge. Co.
f
Teletype,
to
Boston,
NY
s
1-2733-34-35
Chic.
&
Los Ang.
TRADING MARKETS
Kingan Co.
Industry
]
Alerted.
Thiokol Corp.
.!,
;;
Company, Inc., in which the Securities and Exchange Com¬
mission revoked the
registration of the respondent.
:
Upon examining the Findings and Opinion of the Com¬
mission, we are convinced the result is a just one.
The over-all conduct of the respondents smelled to the
high heavens, and demonstrated their incontestible unfit¬
ness to be
registered as brokers and dealers. "
n .•
-(Continued on page 160)
1' '
: ' '
! '
i'
:
Haloid Corp.
,A decision has just come down in the Matter of Oxford
;
Bausch & Lomb
v
-
'
Sargent & Co.
;
Billings & Spencer
hi Rio &
&
lo.m
Members New York Security Dealers
170
Broadway
Bell
Assn.'
WOrth
System
2-0300
Teletype NY 1-84
j
~
they
Bills and
We
are
Punta Alegre Sugar
;
interested in offerings of
-
.
..
i
*
Eastern Sugar Assoc.
possible for the commer¬
banks
High Grade
to! create,
when they
at the
Federal Reserve Banks; and, in an
attempt to improve the yield on
their assets, the commercial banks
(Continued on page 139)
•
wished, their
Public
own reserves
Lea Fabrics
U. S. Sugar
v
Utility and Industrial
PreSsurelube, Inc.
*
PREFERRED STOCKS
Spencer Trask & Co.,
Armstrong Rubber
Mohawk. Rubber
25 Broad Street, New York
Telephone HAnover 2-4300
Members New York Stock
Haytian Corp.
Punta Alegre Sugar
Vicana
yv
New
York
Broad
Broadway
DIgby 4-8640
Newburger, Loeb & Co
Private
Wire to Boston
Public National Bank
&
American Bantam Car
Trust
Co.
'
•
\
'
Income 4s, 1965
Bonds
■
.: /v *
Radiator
Co.
Bought—Sold—Quoted
-
Ass'n
Analyses
to
Board of Trade Bldg.
CHICAGO 4
Hon Rsse § Trsster
Harrison 2075
Teletype CQ 129
York—Chicago—St. Louis
Kansas City—Los Angeles
and Odd Pieces
National
74
Trinity Place, New York 6, N. Y.
Telephone: BOwling Green 9-7400
Teletype: NY 1-375
available
dealers
only
C. E. Unterberg & Co.
Members N. Y.
Established 1914
Direct Wire Service
New
■
St., New York 4, N. Y.
WHitehaii 3-0272—Teletype NY 1-936
Exchange
Sugar
Security Dealers
Teletype NY 1-832. 834
WHitehaii 4-6330
25
Republic Pictures
STRAUSS BROS.
Members
NEW YORK 4
ExcHange
Teletype NY 1-5
DUNNE S CO.
Members New York Security Dealers Assn.
Common and Preferred
32
Prudence Co.
Wires
2-478S
Precedent
f and Usage and the Legislative Function.
Lawyers Mortgage Co.
Bell Teletype NY 1-2033
'
PL, New York 5, N.Y;
System
Private
Certificates of Indebtedness. This
Bond & Mtge. Guar. Co.
40 Wall St., N.Y. 5
Reilly &Co.,inc.
-
rise in interest rates
Members New York Stock
' '•1
■*
.
Request
Requiring That Dealers Have Physical
Possession of Securities Sold Is Assailed.
needs of the
which for several
have been
;o cause some
.
Request
on
HAnover
Attempted Which Would Lay Majority of Dealers
Open to Discipline.
SEC Invades Trade Custom
money
—
*•
•
.
on
**Prospectus
Federal Reserve Banks established
cial
running at the
rate
of almost $60 billions per
year—might have been expected
rears
most serious effect on the
a
made it
debt
grown
Government Control
have
the
leaps and bounds, until it is now
$278 billions.
v*.'
'
The
proaching the $300 billions level
would,: through
refinancing:; at
higher and higher rates, gradually
the
of
that
national
|jr. F. R.
I.
War
spite
fact
for
a
'
* Circular
V
40 Exch.
But a rise in these rates as
ed
•'.
:
:
.Members
New York Security Dealers Assn.
Pushing Its Pet Hobby of Full Disclosure.
New Doctrine
.1
"
J.F.
SEC Decision in Oxford Co. Case Shows Commis¬
sion Still
*u. S. SUGAR
;
/
Economist, National Securities and Research Corporation
Teletype NY 1-120$
-
**UNION ASBESTOS
York, Jan; 3, 1946.
(r .;
!
•;
questions
*:/•<
1 A
s
f
course, on any-
of
(Continued
Security Dealers Assn. I
Broadway
New York 6, N. Y.
y
-Address by Mr. Ecker before
•the
;\j.
.
my
|
The future of Interest Rates
STREET, NEW YORK
Telephone WHitehaii 4-6551
^
tion,
know
New
99
housing With-^ 1
7
*
' —■———-—"
construct haps another member of the fam-'
thinking econo?
Stale
Request1':
on
OBSOLETE SECURITIES DEPT.
out
ift
Hotel Astor, New York City,
.
financing re¬
normal channels.
and
more
Of the
Memorandum
My subject has to do with housing.; I suppose it»might also have,
employment, or construction, if you like. You can't have
,
Raymond
Low-Priced Oil Speculation
j.
to do with
Address by Professor Rodgers
before the Savings Bank Bond
up, :
ended
any
REALIZATION CORP.
Says Housing Shortage Is. of Two Types,
Emergency
Permanent, and That Permanent or Long-Term Shortage Is
Due Largely to Higher Standards of
Living and Home Construction,
Lays Difficulties in Remedying Emergency
Shortage to OP A Rent
Ceilings and Other Regulations, and Points Out Probable
Heavy
Losses on Temporary
Buildings Due to Obsolescence. Holds Many
Housing Projects Require No Public Subsidies and Urges Changes
in Laws, Policies and
Regulations Be Made to Stimulate Building.
*
rates
that
now;;
war
Industry.
that in¬
behave
mist that there must be new
Again,
"according to
the book," in¬
lars..
terest
>
1 during
fashion
convince
to
trillion rdol-
should go
not
;
War II would appear to be
:
a
did
rates
MAR-TEX
j
and
according to; historical; the?
during the decade before the
debt
AND COMPANY
1
Construction
The
die hard.
Co.
Housing Promoter Maintains That
Industry in Which Individuals and Firms Are Better
Prepared and More Anxious to Carry on Than the
fact that interest rates did not bef
when the !
war
Prominent Insurance Official and
There Isn t Any
who
economists
even
are
h. ecker*
Chairman, Metropolitan Life Insurance
rates do not
go up they will have to be put up
by the Government to prevent in¬
flation. 'tfV-yV.v(..
rates- should
during
By Frederick
write that if interest
wise, -interest
have
\
/
Like¬
taxes.
^
{
School of Commerce, Accounts and Finance
•
in
;
Professor of Banking, New York University
i
123
61
Security Dealers Ass'n
Broadway, New york 6, N. y.
Telephone BOwling Green 9-3565
Teletype NY 1-1660
I
FINANCIAL CHRONICLE
THE COMMERCIAL &
124
Outlook foi 1946:
W\KD'&'C0.
f
By ROGER W. BABSON
_
Mr. Babson Gives Suggestions
for Apparently Insignificant Gadgets
May Offer Opportunities for GIs and Others
and Inventions Which
and Points Out That the Best
Who Sell These Things
Products
Opportunities Will Come
Rather Than to Investors.
Confusion in
;
Those
to
Air Cargo
Goods; (2) An
Under-Supply Lasting Through 1947; and (3) A New All Time
Currency. He Warns of ihe
V Strong Political Disunity at Both the World and
National Levels.
make
insignificant things in the
belief that they, in the aggregatemay do much more for individual
and
spiration
Transportf I
cer¬
me
tain that there
Alaska Airlinesf
are
Coin.
i
& Pfd.
Amer. Window Glass*
Com.
I
Pid.
i;
Mfg.t
not
Douglas Shoe*
bombs
radar
or
electronics
or
or
;
the
food
other
products
the
use of starch sponge.
To jump to
the other side of the spectrum/we
find the use of fog to put out
fires.
May ; I continue
without
discuss
atomic
by
comment:; Nonbreakable
incan¬
descent, lamp bulbs y
ice boxes
with revolving interiors
elecf
which
trie switches which
,
W. Babson
Roger
in
the;
and
have
zines.
.
work with
.
.
Venetian
-
blinds
.
■y>•;" (Continued on page
appar-
...
.
n e w
138)
Amer.; Industries*
Hartford-Empire Co.
I
Kaiser-Frazert2
Art Metals Construction
Central Public
I
y;:
|
Lamson & Sessions*
i
:'
♦Bowser Inc.
?
cally supported:
Minn. & Ontario Paper
!
*We have
that
the
for
{
.... ..
goods at home
before;
Goodbody
Natl. Vulcanized Fibret
mands
year
.
Oxford Paper
.
\
Broadway, New York
»•//•
Com. & Pfd.-,,,':1 v $f»
■
next;
'
Third,
Munn
f
7.\"
deposits and
combined will stand at
peak
or
Address
by Mr. Munn before
New York Chapter of the Ameri¬
_
SPORT PRODUCTS; Inc.
;
Sylvania Industrial T
A LEADING SPORTS MANUFACTURING COMPANY AND
i
K
MAKER
MacGREGOR
OF
CLUBS
GOLF
UNINTERRUPTED
.:i:y
United Artists
WITH
No reconversion
I Union Asbestos & Rub.t
EXCEPTION OF
THE
problems
No preferred
.
.
.
,
.
;/'/:\/
1933
No funded debt
.
1.40
1942
'1.59
1942
1.24
1941
.
1940
Circular
.
/
Great American Industries
Established
Members N.
mov kmm
11
•-'v
Aspinook Corp.
Teletype NY
Broadway,
New
York
4,
e
:
profoundly affected, especially in
such factors as wages, prices and
profits, by new variants imposed
in the rules of the game.
In "the so-called exact, physical
sciences,
tomed
REctor
Y.
-
have grown
we
to
the
so accus¬
precision and
formity of nature's
uni¬
processes
that
longer bother to state phys¬
by means of the neat
syllogisms in which they were or¬
iginally framed. That the pull of
we no
ical
laws
falling body is at the
on a
accelerative
rate of 32 feet per
second per second is a
conclusion,but
with
this
major
premise
omitted, namely, if nature be uni¬
form, that is, performs in the fu¬
ture as in the
past.
Likewise,
that
water
freezes
at 32
deg.
J.K.Rice,Jr.&Col
.
m
Alabama Mills*
measurements of business may be
is /a
conclusion
repeated
1,268,046
'
or accepted into the
pattern of our
folk-ways. In other words, what
happens in 1946 in the statistical:
•F.1
1,884.670
i
request
on
7
1.555,044
2.131.633
-I—..
1940
1.42
v
TEXTILES
Greater New York Industries
'
$1,595,818
1913
1941
:|7/: Kaiser-Frazer Corp.
.
.
,
NET WORKING CAPITAL
1944
$1.46.
1943
Warren Bros. "C"
YEARS
150,000 Common
EARNINGS
1944
Waltham Watch
FOR' 20
DIVIDENDS
our
gravity
'
Commercial Nat. Bank & Trust
Taca Airways*
I
G.
Glenn
nom-
Statistical Association,' Jan 8,
1946./
'
:
V: -
Polaroid Com.
I
or
;
Teletype NY 1-672
'
X
possible changes
institutions, whether for¬
malized by legislative enactment,
in
can
"
I
'
as
measur¬
must reckon with
105 West Adams St., Chicago
' :///'.'V'
Telephone BArclay 7-0100
not be
are
about four
times that of the yoar 1929.
It
does
not
follow,/ however, that
1946,
whether
in
production,
Co.
may
rules of the game, some of which
of
engrossing - novelty. / We
be
all-time
them,
solely in terms of economic
motivation. .They " must .also be
considered in terms of disputed
.
P. R. Mallory //
T
economic variations of 1946,
magni¬
currency
■•,;/:■,.',•I, '
: .,,..-1 ;/,
,
able
of
are
three
view
de¬
either / this
Members TV. Y. Stock Exchange and Other Principal Exchanger
115
Sec¬
that
these
*
.
Why am I so timid in not carry¬
ing thq horoscope any further" for
1946, or beyond? It is because the
will be great¬
er
than ever
ond,
.
price
bear *- out
implicit in
apparently: secure
premises/'/
abroad
and
,
.
stock
or
necessarily
peacet ime
an
Mohawk Rubber
will
•
.
profits,
trend,
fully supplied
supplied
Research Dept.
...
the favorable aUguTies
inal volume of bank
our
'
these
that the
Bought - Sold - Quoted
are only
reliably and realisti-
be
can
•
trade,
de-
mand /
cannot
2;' Grinnell Corp.
Merck & Co., Inc.
6% Pfd.:
The Cross Co.
2
special study prepared by
a
w
■; First,
arid
.
'<SS
judgment, there
my
three economic forecasts for 1946 which
cnny\AT<f_
.\,r;
>; vw.
that, in
tude that they
Crowell-Collier Pull;
.
Utility lxA%, 52
Consol. Gas & Elec.
-
/V,,/':,
,
At the outset let me state
such
Gt.
I
a
action of three minutes
windows made of glass strips
like
maga-
Rather, I take the
.
.
delayed
papers
;
.
.
been discussed
,
Political Policies.
y
,
plastics or
other
things
J
Dayton Malleable Iron* J
Du Mont Lab. "A"
I
I
I
Cinecolor, Inc.
I
and
will
legs.
of
simplest,: and yet
may be revolutionary, is the de¬
velopment of confections, cakes
heads' and
'
Bates
Suggestions For GI Men
One
for
their
use
.
a Sharp Conflict Between Free
Enterprise and
Socialism, That This Hinders Business Planning, and
That We Cannot Continue An Economy Half-Free and Half-Con¬
trolled.
He Urges That We Emulate Switzerland's Economic and
Imminent
readers of my column.
those who will
|
S. F. Bowser
v.
I
I
&
enough
*
States That We Face
oppqr-
tunities
American Bantam Car
z4
Peak in the Volume of Deposits and
ently
in¬
Curtis
Domestic and International Demand for Peacetime
„
give ' me
'.7/
•
.
&
Analyst Predicts, As "Basic Economic Forecasts," (1) A Record
,
PARK, MASS.—At the close of each year I like to go
through the various interesting inventions of the preceding year.
TrvT .iTv;;2
They always*'
;
—; 1 - / ;—
industrials
•
Economist, Paine, Webber, Jackson
-
Sees Chemical
Enticing.
Split Society
a
By GLENN G..MUNN*
.
BABSON
|
-Thursday, January 10, 1946
,
(Continued
/
based
observations
on
on
showing
159)
page
'
1988
The
Security Dealers Assn.
2-4500—120
Broadway
Bell System Teletype N.
COMMERCIAL
and
FINANCIAL CHRONICLE
Y. 1-714
'
Reg.
U.
S.
Patent Office
N. Y.
W Hit eh all
1-960
■■•//;// William B. Dana Company
3-4490
Publishers
New Jersey Worsted
,7-
*, •? 25 Park Place,
AMERICAN
WE MAINTAIN AN ACTIVE TRADING MARKET IN
V
/ ;
Dye
STOVE CO.
William D. Riggs, Business
Manager
/Thursday,
American Gas & Pow.
?
MEMBERS
NEW
North'n New Eng. Co.
NEW
YORK
YORK
CURB
STOCK
EXCHANGE
49 Wall Street, New York
(Associate)
investment in
An
/
EXCHANGE
,
(general
the
'•
Teletype NY 1-344
Circular
on
Request
Members N. Y. Security Dealers
Offices:
135 S. La Salle St.,
(Telephone: State 0613);
Drapers' Gardens, London, E. C., Eng¬
land, c/o Edwards & Smith-
Copyright 1945 by William B.
Company
'■
Hartfd €111
Descriptive Circulars
on
Pfd.
request
to
Chicago and Phila.
Buff, 6U24
Seligman,Lubetkin & Co.
Incorpcrated
Boe. 2100
NEW
NEW
YORK
Members New
5 2
WALL
BT.
NEW
York Security Dealers Association
CURB
EXCHANGE
COMMODITY
—
EXCHANGES
730
YORK,
5TH AVE.
N. Y.
25,
as
1942,
Dana-
second-class matter Feb¬
at
the
Y.,-under
post office
the
Act
of
at
Canada,
Central
Cuba.
$27.50
America,
$29.50
per
per
year;
Spain,
year;
South
Mexico,
Great
Broad
Street, New York 4
HAnover 2-2100
and
and
Britain,
Continental Europe (except Spain),
Asia,
and Africa, $31.00
per year.
Australia
Other Publications
Bank and Quotation
Reco'-d—Mth.$25 yr.
Monthly Earnings Record—Mth... $25 yr.
NOTE—On account of the fluctuations
the rate of
exchange, remittances for
foreign subscription-0 and advertisements
m
41
New
Marcn
1879.
Subscriptions in United States and
Possessions, $26.00 per year; in Dominion
of
YCRK'STDCK EXCHAN C3 E
VARIOUS
1-1287-1283
ENTERPRISE PHONES
LUITWEILER & CO.
COMPANY
SEGAL LOCK & HARDWARE 7%
REctor 2-8700
Direct Wires
FOUNDATION
ruary
3,
MEMBERS
120 BROADWAY, N. Y. 5
Y.
BENDIX,
GLASS
FASHION PARK, INC., Common
THE
N.
Reentered
WELLMAN ENGINEERING CO.
Assn.
Monday
1
;
1926
SHATTERPROOF
advertising issue)
Chicago 3, 111.
WALT DISNEY PRODUCTIONS
EST.
week
.Other
I
W4RD & CO.
a
<
1946
(complete statistical issue—market quo¬
tation
records,
corporation,
banking,
dealings, state and city news, etc.)
5, New York
KENDALL COMPANY
news and
and every
Coming Building Volume
fProspectus Upon Request
Telephone HAnover 2-9500
twice
10,
every Thursday
Laurence M. Marks & Co.
New Eng. Pub. Senr.
Circular upon request
January
Published
Iowa Southern Util.
or
D. Seibert,
William Dana Seibert, President
Capital Stock
Bulletin
Herbert
//•/:Editor and Publisher
Seeger Sunbeam Corp.
*
New York 8
REctor 2-9570 to 9576
Textron Wrnts. & Pfd.
United Piece
-
must
be
made
in
New York funds.
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4454
163
Stock Market In 1937 and Today
Points Out the Present Favorable and UnFavorable Factors for a Continued Rise in Stock Prices, as Com¬
*
.
-
;
first occasion^-
time,
in
duction during
average
goods, railroad
equipment,
agricultural .imple¬
ments. Today, we have a pressing
The
market hesi¬
tated
15-20
million
homes,
million
several
for
need
six
for
completed
had
years
homes, household
had climbed
120%.
the war.
we
of active business
which fairly well supplied the demarfd
for
automobiles,
radios,
months, and
the
1937,
several
50
for
In
4.
had
prices
restricted pro-
smaller because of
rise
lasted
.
1927.
that
the
;
:
—
million
5
radios,
months ' and
washing machines and 15 million
then continued
motor
its uptrend
a
n
h
t
o
yea r
for
d
a n
a
are
half and made
ftalph
A.
Rotnem
In
1937,
tested the 190-200
risen
for
56
in
and
market
had
difference
ad¬
In
this
third
and
The
months.
again
Current
that
level
there
fact
this
tested
torical
and
190-200
this
an
stock of
that
area
in
has
a
important
as a
to
and
contrast
those of 1937.
•
are
"
take
1.
-2.
The
it lists
3.
on
15%
With
1937
I Force.
■•■.V'-
.
they
gled
or
to
greatest
emphasis is
laid the bal¬
is
ance
as
the
a
vorable
is
that
level
a
stock
an
high
securities
busi¬
1937.
ex¬
Brown
in
higher
well
as
as
prices
for
Hamilton Bridge Co.
sharp
,
unfavorable side is the profit mar¬
F. W.
La Farge
Strikes undoubtedly
earnings in some in¬
but
not
seriously
in
dustries,
favorable features
themselves
law
tracted to
It
Statistical Association, Jan. 8,
1946.
.
creases
is
whether
can
unless
an
much
Farge be¬
fore New York Chapter of Ameri¬
by Mr. La
Kirkland Lake Gold Mining
affect
duction in the tax rate and several
in the tax
Jack Waite Mining
gin question.
will
re-
Address
Hydro Elec. Securities Com.
International Utilities
the
on
the
pro¬
Massey-Harris Co. Pfd.
Minnesota & Ontario
the
In
1946, this
inevitable
wage
in¬
Noranda Mines
from
the
Pend Oreille Mines
come
on
146)
page
on
Direct Private Wire Service
-
Premier Gold
■1
p t:'y-p
r-
Uny
page
<*- j•/y'
V>
52
COAST-TO
141)
New York
Chicago
*
St Louis
-
Kansas City
HAnover t~W
ST., N. Y. 5
WILLIAM
COAST
-
Bell
Teletype
NY
1-395
Montreal
New York
IISTRAUSS
Toronto
Los Angeles
*
^
YORK
Rector Street, New York 6,
WHitehall
,
T.
&
T.
|f
4
\
Common
•<'
White & Company
Baum, Bernheimer Co.
KANSAS CITY
LOUIS
Republic Pictures
Pledger & Company, Inc.
and Preferred
Common
LOS ANGELES
N. Y.
4-7545
Teletype
NY
1-570
Petroleum Heat
is
PANAMA COCA-COLA
Corp.
Jeff. Lake Sulphur Com. & Pfd.
Lane
Industries
Reda Pump
y
Commercial
Standard
Quarterly dividend payable January 15, 1946
Mills Corp.
Cotton
-
Hartman Tobacco
V
■
;
;
.
1945
-
Tobacco
Standard
Missouri State Life
Fruit
Com.
Red Bank Oil
&
$2.25
—
1914 $2.75
•
'•
Co.
Security Dealers Ass'n
Whitehall 3-7830
74
New Orleans 12, La.
Carondelet Bldg.
Bo. 9-4432
' :
Trinity Place, New York 6, N. Y.
YORK 4, N. Y.
Telephone:
Teletypes:
HAnover. 2-2600
1-1017-18 &
NY
Direct
Teletype: N f 1-375
Telephone: BOwling Green 9-7400
.
Los
1-S73
Wires to
Angeles and New Orleans
:C-V-KX'-y': v':-
,
Securities Co. of N. Y. 4%
Carbon Monoxide
Eliminator
American
Farrell-Birmingham
Consols
Cyanamid Preferred
Consolidated Electric & Gas pfd.
Eastern
Company
American Insulator
Sugar Associates,
ANALYSIS
ON
Punta Alegre
Sugar Corp.
Common
Gulf Public Service Co.
Missouri Pacific old
Common
REQUEST
common
& preferred
N. H. & H. old
common
&
N. Y.
Petroleum
Gilbert & Bennett
Heat
&
Power
Haytian Corp.
preferred
Co.
Quotations Upon Request
l
W. J.
PETER BARKEN
Broadway, New York 4, N. Y.
Tele. NY 1-2500
.,...
STREET
BROAD
NEV/
•
.
Bell Tel.—NY-1-493
1-2763
1914
Specialists in Soft Drink Stocks
;
30
Members New Orleans Stock Exchange
41 Broad St.
Telephone
\*:/r.
Established 1922
T. J. FEIBLEMAN & CO.
New York 4, N. Y.
•..
qAllen & Company
HoiiRsseSTrqster
V'
'
••
-
29V2
New Analysis on request
ESTABLISHED
&
& Power:
United Piece Dye Works
'■
S. Weinberg
—
S/S
&
Pfd.
•
1943 S4.50
—
Approximate selling price
;
$.75
1
DIVIDENDS:,
,
NY.
Harrison 2075
Teletype CG 129
27.7 billion;
Great American
GO Wall Street
Utilities
CHICAGO 4
:
-
Teletype NY 1-832-834
General Public
)
Board of Trade Bldg.
DIgby 4-8640
S. R. MELVEN & CO.
2
1
Broadway
NEW
^
P'/Pi>
v
BROS.
Members New York Security Dealers Ass'n
.
ST.
Harvill
Id. WHitehall 4-6430
Mining
L^e Assurance
HART SMITH & CO.
,4
'
Bought-—Sold—Quoted
the supply of consumers'
goods
32
Paper Co.
Nipissing Mines
question of
will
(Continued
.
are
unbelievable degree.
more
that
they
Rwy.
Lumber
Western
Electrolux
commodities
serious factor
7% Pfd.
Company Com. & Pfd.
Canadian
*
most
Corp.
Canadian Pacific
supply
money
Unfavorable Factors
The
The
foreign
Red Bank Qil Co.-y?*)
A.
&
remains, the
Sun
V4.
■
.
hPppky Company, Inc.
billion; money in circulation has
Preferred
yields.", In
bond
Andian National
Assoc. Tel. & Tel. $6 &
assured
Interstate Home Equipment
v
from 35 to 247
advanced from 6.6 to
Teletype
important
ratio
be¬
and goods.
will
important
1937, but it is vastly
emphasized today. The gov¬
Bell
Royal Bank of Canada
to strengthen
another
large
itself
press
with
*
ap¬
which continues to attempt to ex¬
domestic
and
a
serve
there
ceedingly
factor
of
ness,
by
tween
fa¬
Canadian Bk. of Commerce
in¬
already
and
the
addition,
towards
is
favorable
factor,
stock
market
trend
further
even
most
important
dividends
parent and will
whole.;
The
The
creased
year
Bank of Montreal
in¬
consequent
a
levels.
favorable side
for
overall increase in
an
and
in dividends from the 1945
crease
the
on
produce
earnings
the
corporation amount¬
in
(Continued
1,576,517,836 shares.
New York 5
are
associated with their firm.'
<$>-
jug¬
where
are
i 2. The cost of labor is far higher
today than it was in 1937, but in
Stock
Members N. Y.
duty, and Joseph A. Haigney,
now
1
how
matter
Banks, Brokers and DealersOnly
supply of stocks has in¬
ernment debt is up
who
active
weighing of the favorable and unfavorable factors most im¬
portant to the stock market in 1946 derives the conclusion that no
influence in
more
S.,
from
A
^
little.
was
U.
A.
released
Possible Stock Market Boom in Last Half of Year,But
Urges
Caution Against the Lure That Bullish Factors Never Lose Their
32
Inflation
been
11
In 1937, the New
Exchange listed 1,408,078,066 shares of stock. Today,
r
Taxes
to
with
Liquid savings of individuals
the highest in history.
York
assured.
appear
tax will be 38%.
now
creased
advertised
and
Lieutenant
have
Compared With 1937
*
ed
:
them
,
pared
used
Armed
our
that
announce
,
sees
,
Favorable Factors Today Com¬
1.
years,
City,
First
Factors, Mr.
Unfavorable Factors Today
;
one
future action to look at conditions
today
recent
Unfavorable
the Favorable Side for the Year.
on
York
Hugh H. Carlson, John W. O'Brien,
Says Effects Will Be Variable As Regards Individual Industries,
and That if Prospective Stock Prices Are Based on Earnings Stocks
Will Still Have a Favorable Yield Compared With Bonds.
Fore-
combine
ing would
year
guide to
La Farge Holds the Balance Is
demand,
quate supply of dollars their buy¬
his¬
buy stocks in
lower, makes
or
interesting time
our position.
It seems
it
history when
has not been able to
the
was
throughout the
world. Most nations have a greater
need for our products today than
they had in 1937. Given an ade¬
further fact
has been
never
in stock market
of stocks
land
After Weighing Both Favorable
.
Forces have
test,
important
the
in favor
American, goods
the average has gone up 105%
44
In
7.
the average lost 50%.
.
lower than
are
only 14%.
the rise stopped at
the next 12 months
in
Interest rates
1937.
Today, stock yields are
33% higher than those on high
grade bonds, whereas in 1937 the
from their 1932 low.
this time
194.40 and
6.
in
Prices had
area.
months
vanced 380%
But
381.17
was
:'-:i929.
another bull
were
spects, the war has advanced sci¬
entific developments by 20 years.
gain of 90%.
Its high point
v
new
nearly perfected than
in 1937. In many re¬
more
they
additional
an
and
important
industries have been developed or
r
e
cars.
Several
5.
New
Analyst for the Tri Continental Group of Companies
pared With 1937, Another Bull Market Year, and Although Stating
j
It Seems Likely That the Market Will Sell Higher in Next Few
Years, He Urges That as Prices Advance, There Should Be More *
Caution and Discrimination in Buying.
;
This is the third time in history that stock prices have reached
Dresent levels (190-200) for the Dow-Jones Industrial Average., The
,
Barrington & Co., 29 Broadway,
By FRANCIS W. LA FARGE*
Stock Market Analyst
At
Haigney at Barrington
in
Harris, Upham & Co.
irt
Carlson, O'Brien &
for the
By RALPH A. ROTNEM
was
125
Established
FREDERIC H. HATCH & GO.
1904
"
50
Broadway, N. Y. 4
Carlisle,
Pa.
HAnover 2-8380
Scranton,, Pa.
\ IS II
&
CO.
Members
Banigan & Co.
"
"
'
'
MEMBERS
63 Wall
*
N.
Y.
Incorporated
'
'
'
SECURITY DEALERS
Street, New York 5, N. Y.
*•••
;*•
' *?.;
ASSOCIATION
Bell Teletype NY-1-897
New
York
Stock
Exchange
Exchangt
New
York Cofjee & Sugar
120
WALL ST., NEW YORK
TEL. HANOVER 2-0(112
THE
126
to
Savings Bonds in War and Peace
ERNEST G. DRAPER*
By HON.
of the Federal Reserve
Member Board of Governors
Pay NaH Debt
System
Benjamin C. Marsh, Executive Sec¬
Holding That There Is No Peril to the Treasury From the Large
Redeemable War Savings Bonds Outstanding, Mr. Draper
Points Out That the Increased Redemptions Since End of War From
Lobby," Asks
retary of "People's
Volume of
to Inform
December Is Not Unreasonable and That
ity" Is Planned by His Administra¬
Met by Government Borrowing
tion.
Points Out That Consumers
Thrift Campaign Be Continued
Pay Business Profits and Govern¬
Banks Can Play a Stabilizing
ment, as Tax Collector, Has a Di¬
Part in Peace-Time Economy, Though Admitting That in Shortage
rect Interest in Profits Distribution.
Period They Have an Inflationary Influence,
Charging "the Government in¬
This has been an expansive war, in lives, which are by far our tends to
pay a large part of the
most precious asset, and in dollars also.' At their peak war expendi¬
National
Debt
through
higher
Any Substantial Increase Could Be
From Banks. Urges the War Bon^l
Unabated and States That Savings
:
<
ranged from 7 to 8 billion5^
dollars a month and in one year compared with less than $50 bil¬
totaled 90 billion dollars.
From lion in 1940. Thefact that the
Government has been able to raise
tures
Ifearl Harbor to the end of June,
a
ahd in addition there were the reg¬
such favorable rates
is
governmental expenditures.
Only part of this large amount
was
raised through taxation,
complishment and
.
267
for war purposes,
billion dollars
so
confidence that
ple have in the
country.
rates were in¬
though tax
creased and there were also new
taxes
and
Receipts
lion in
tax
broadened
a
1939
the last year be¬
—
sharp
a
real ac¬
bespeaks the
the American peo¬
future of this great
-
The end of
bil¬
a
,
the war has
expenditures
were
made for defense or war—to $44
billions in 1944 and $46 billions in
expenditures and now our atten¬
tion and energies can be turned
from the raising of vast sums of
1945. A
money
fore
large
drives to other
problems. One of the problems
public. The that will require judgment and
the end of ability on the part of the Treasury
large part of the cost of
the war has been met by funds
borrowed
from
the
debt
Government
at
1945 amounted to over
Reserve System
the Federal
and
$270 billion
in war loan
understanding on the part
and
the
Draper before the Conference for
Safeguarding
Wartime Savings,
Waldorf Astoria Hotel New York
the
*An
City
delivered
address
Jan. 9, 1946.
on
(Continued on page
>
1921
of
public is the management of
public debt in the postwar
period. The fact that the Govern¬
ment's debt is so widely distnb-
by Mr.
i i
167)
w
Public's Desire for
an
Money and Leisure Must Lead to Crash Became
j.
Regardless of a national deficit That Care Be
billions and an estimated Exercised to-
of $250
deficit for the coming year
billions
of $30
{this figure, alone
more
x
e c r e
duced
tion's
T h
the
a m
Marsh
Benjamin C.
efforts Price
:
.,.,.,
Self-Preservation. Urges
Be Used in Mak¬
tions for
Extreme Caution
gifts to other
Maurice S. Benjamin
nations.
Administrator Chester Bowles has
(made to control prices, reads in
of Investment
Bankers; (1) Their Obligations to
the Public and (2) Their Obliga¬
and
On top
Albert Thorpe
a
Dual Responsibility
n.ta'a 1
.
Sees
It.
to
us
a
subst
the
of
o
loans
ex¬
presses appre¬
ciation
of Young Men
spending
program plus
letter,
which
Highest Type
re¬
taxes
b i t i
;
Attract the
to
..
plan.
e
Be Maintained
$6 billions and,
is planning an
Administra-
Condi¬
Should
tions
adminis¬
our
American
is
fi¬
was
tration has
tell
this
er
Business and
T h at
in the 1930's),
Jan; 3 asks
the
Prestige, of the
l aunc h e d
public
to
-
nancing
President,
him
deficit
of
e
of the
t
in en
our
the new theory
the
to
in
history before
t ary,
Benjamin C.
Marsh,
in
a
letter
ac¬
any
deficit
t h
Preserve
Reestablish-
higher
than
ecutive
E
v ;>
Consequently He Advises a Scapegoat
Switching Investments to Com¬ and Whipping?
panies With Low Labor Factor.
Boy, Urges
cumulated
j5
•
Inflation.
Lobby, Inc.,
through
its
on
brought
By ALBERT W. THORPE
Says; That Mr. Thorpe Recalling That Invest¬
Era of More ment Banking Following the 1929
Economist
being
.
in Government people wheth¬
decline
Hill & Co.
prices, an unthinkable brutality,"
the
People's
;
'
"
made
Management of the Debt
The
base.
$5
from
increased
money
basis in such a
ular
even
much
voluntary
short time and at
on
spent
Government
the
1945
>'
•
Benjamin,
Partner,
Senior
Of Investment
BENJAMIN
By MAURICE S.
;
1
People
Whether This "Unthinkable Brutal¬ Financial
$400 to $700 Millions in
Whithei Trend
Wine, Women
And Song
.
president Truman
Thursday, January 10, 1946
CHRONICLE
COMMERCIAL & FINANCIAL
of the record huge sav¬
ings and record national income
due to the Government's expen¬
Investment Recommendations
Radical Speculation Be
ing
and That
Discouraged.
banking profes¬
all too
win two wars
vividly the lessons of the Thirties. ?
Finding
more
money.
It should remember that from
conflicts between General Motors
higher farm benefits, subsidies, highly respected and honorable
and the United States Steel Cor¬
bonuses, social security, old age business it became a scapegoat^
poration,
and
the
workers in and
unemployment insurance are and whipping-boy following the'
those two great corporations, is
being extended. Men and women 1929 crash; the target of the pub¬
highly timely.
lic and politicians alike; the butt;
are, toj*et $25 per week (no de¬
It evidences your appreciation ductions for travel or social secur¬ of crude
jokes; anathema to many
(Continued on page 166)
ity or dues) while not working. big and little speculators who'
(Continued on page 166) H: found that the pot of gold was
dross.
"
V
;
Investment - banking
deserved
*U.S. SUGAR
ACTIVE MARKETSsome of the criticism heaped upon
part:—
I Your
■;
appointment
of > FactBoards on the current
ditures of $100
billions per year to
everyone is to get
Higher
wages,
i
The investment
remember
should-
sion
.
;'
Ww
25th
-
ANNIVERSARY
,v:.'
.
V.T*
■
Com. & Pfd,
t.
■>'
'
1-
(,
it; like all prosperous
Great American Industries
V
Common
V.: r'r
RADIO
MAJESTIC
businesses
during the Twen-
it had attracted
;
.
-
.Com. & Pfd. ;;
■•
'
'
ry
*GREAT
Carreau &
i
Established
Company
January 6,1921
Members
'•
.
.
,
'
INDUSTRIES
;P§®<
•<Common
Bought—Sold—Quoted
New York 5, N. Y.
on
/',
Request
SIEGEL & CO.
89 Broadway,
,
** Prospectus
;;
on
announce
J. F.
that
Reilly & Co., inc.
'
Members
MR. GEORGE ALBERTS
New
general
believe
We
cement
''"v
;
/
.
our
firm
Private
Boston,
Wires
;
Consolidated Cement
v
Riverside Cement
to
Members
New
York
Security
Circulars
V
I Merchants
Inactive
10
Securities
SQUARE
9, MASS.
BOSTON
Teletype BS 69
Tel. HUB 1990
con¬
C.
present
the
Babson
Care American Consulate
V'
Madras, India
H
POST OFFICE
than
be¬
is
holders
Receipts
their
price.
i
LERNER 8c CO.
Refrigerating Co.
January 2, 1946
Available
more
it
American
the
for
Arthur
New
Dealers Association '
New York 5, N. Y.
70 Wall Street
that
secure
siderably
Spokane Portland Cement
C. A. Alberts & Co.
together,
working
; By
lieved
Curb
Chicago & Los Angeles
Guar¬
Trust Company American De¬
pository Receipts* for the stock of
the Burma Corporation.
anty
Oregon Portland Cement
1-2733-34-35
System Teletype, NY
and ad¬
dresses of the holders of the
:' WE SUGGEST
V
I desire to get the names
can
partnership in
166)
on page
BURMA CORP.
companies will
for several years.
York Security Dealers Assn.
HAnover 2-4785
Bell
Eliminated also
others, honest, but
(Continued
.
both
against
upstream
NV 1-1942
operate at capacity
•'
40 Exch. PL, New York 5, N, Y.
has been admitted to
;
lean years—
Request
^
pleased to
swim
were numerous
DIgby 4-2370
N.Y. 6
that fol¬
years
when it was necessary
years
tide and current.
Teletype
;
are
to
<■
*Circuldtr
We
the
largely
were
men
in the
lowed the crash—the
;
Air Cargo
"
these
eliminated
Dayton Malleable Iron
Common
CORP.
KAISER-FRAZER
•;
ness^
Pfd.'.
&
Common
insatiable:
conscience and
Fortunately for the busi¬
greed.
Kingan Co.
4
®
YORK
NEW
irresponsible fringe, men
an
of easy
<"B">
■;■
M
ties
Tool
United Drill &
■'
'
; industries
<Kew York Curb Exchange (Associate)
63 Wail Street
.
'
Chicago Board of Trade
v
♦-
AMERICAN,
GREATER
,
•.
l\eu; YorJ^ Stoc!; Exchange
-
:-
,"
'
York
Correspondent
Howard G, Peterson
Room
New
768
York
"These
-
1775
City.
receipts
hence
there
Broadway
CI 6-0650.
have no vote
will
be
no
and
call
for
proxies.
Richmond Cedar Works
Telephone Bond & Share
KOLD-HOLD MANUFACTURING COMPANY
Manufacturer of Electric Refrigeration
A low priced speculation
Equipment
7%
Continental
Telephone Bond & Share
Class
PROSPECTUS ON REQUEST
FRANKLIN
COUNTY
Mac Sim Bar Paper
ON REQUEST
Co.
Bought—Sold—Quoted
7%
Members N. Y. Security Dealers Ass'n
111
LEWIS & STOEHR
Incorporated
BROADWAY, NEW YORK 6, N. Y.
Securities
A
NY 1-1026
80 Broad St.
New York
Street, New York
Telephone
MICHAEL
HEANEY, Mgr.
WALTER KANE, Asst.
Mgr.
Preferred
JAMES M. TOOLAN & CO.
67 Wall
Telephone: DIgby 4-0985-6-7-8
Preferred
Associated Tel, & Tel.
6%
F. H. ROLLER & CO., Inc.
BArclay 7-0570
Curb and Unlisted
Associated Tel. & Tel.
COAL
COMMON
CIRCULAR
Preferred
HAnover
2-9335
Teletype NY 1-2630
Joseph McManus & Co.
Members New York
Curb Exchange
Chicago Stock Exchange
39 Broadway
Digby 4-3122
New York
6
Teletype NY 1-1610
ruo*
Number 4454
.Volume 163
rovfivrwiAL &
FINANCIAL CHRONICLE
127
'.V
\
.
.
v.
;
■
To More
Financial Arrangements
By LORD KEYNES*
Spending
v;' Financial Advisor to Great Britain
Secretary of Commerce, in Reviejw and Forecast, Notes Progress of
Shifting and Adjustment Fronj War to Peace May Continue
Throughout 1946. Says Wage Payments Have Dropped by 12%
From First
v"'
Profits
Have
:
/
Stating That the Recent Anglo-American Financial Agreements Constitute: (1)
Blueprint for Long-Term Multilateral Organization of World Commerce and
Foreign Exchange;< (2) a Proposal for Near-Term End of the "Sterling Bloc";
and (3) an Offer of U. S. Financial Aid to Effect These
Transitions, Lord Keynes
Urges His Countrymen to Give Up Post-Mortem Claims for Past Sacrifices and
Quarter of 1945, but Farmers' Income and Business
Steady. Holds Individual Savings of Income
Remained
Dropped From 30% to 20%.
Look for Means That Will Promote Postwar
Reconstruction and Be
a Postwar
Economy.
Secretary of Commerce, Henry
A, Wallace, released
statement
of
the
Jan. 7, a
version
of technical and
physical con-,
on
his
regarding
progress
versions of
plants and in-!
dustries
since
Says Americans Favor
America for
Day
was Not Non-Interest-Bearin
g, but Finds Great Satisfaction in Clear¬
ing Up Old War Debts and Concludes "the Magnitude of Our Surrender Was
Not So Great."
Secretary of Commerce
;
predicted that; Secretary Wallace Expresses Optim¬
.although in istic Views
Regarding Reconversion
large part
and Reconstruction Which He
Says
completed, the
process
of Can Be Accomplished as Was the
shiftingand "Wartime Miracles."
Holds We
adjust merit
My Lords, two days in Westminster
nf
n
/4in4-n
vast
a
nrtV\n v»r*
distance
''vr
ter
Wallace's
statement fol¬
lows: '
T h
.
e
o
u
t-
standing
ture
/
the
of
economic situation in 1945
resilience
with
which
the
absorbed
sudden
end
of
shock
the
the
was
the
econ¬
of
the
activity turned downward in the
second half of the year, but the
shift
from
the
tice Act.
wartime
economy
was
orderly. National
and
a
overrated
af¬
fair, the Gulf
Stream,
though that is
quite
enough
in itself to fog
and
dampen
everything in
■
us
140
are
look at America.
Here
million
people enjoying
highest living standards in the
world—living in a land so bounti-
transit
the
i
in
*An address by
Secretary Wal¬
before National Convention
can
second
half
of
Omega Psi
Phi
Fraternity,
Washington, D. C Dec. 29, 1945.
i
other, even when they have the
advantage of a common language.
_
House of Lords during the debate
of Dec. 17-18, 1945, pertaining to
motives
other
side.
and
I
of the
purposes
think
it
would
worth while that I should
be
devote
some
part of what I have to say
to that aspect.
How difficult it is
for nations to understand one an¬
Lord
Keynes
(Continued
on
page
153)
sult
;
of
differently things
appear
pleased to
are
|
recent
agreements
United
States
and
between the
the
United
Kingdom.
(Continued
on
page
l49)
the opening
announce
of dn office in
one
ALLENTOWN, PA.
easily
Dime
re¬
Building, 7th & Hamilton Sts.
negotiations ''with
Telephone 3-7911
under the
management of
'
WILLIAM R. CROASDALE
We are
pleased
to
v-i-
^
of
JOSEPH SCHRANK
■T-
The difficult process
from
over
a
of chang¬
to
war
a
has been released from
the year the technical and
physi¬
cal conversion of plants to civilian
and lias
"production has been in large part
completed, though the "flow of
new
finished products wgs still
'
1
s
\
*1
Charles A. Taggart & Co.
time economy was gradually be¬
ing accomplished. By the end of
small.
y
(Major, A. U.S.)
peace¬
as
active duty
Investment Securities
resumed his association with this firm
1500 Walnut
of our trading department
manager
'-'fv
-
r*
.r.iZ-e.:j'A'■ <
•
■
Street, Philadelphia 2
"
r'<"
■
j
V''v>
-Employment in non-agricultural
industries* declined
V-J day
dation
as
of
a
war
ShaskankGo.
sharply after
result of the
production;
liqui¬
how¬
We
'
in the final quarter the number employed turned upward, i Despite continued shortages of
CHARLES L. WALLINGFORD
NEW YORK STOCK EXCHANGE
goods both wholesale prices
cost of living were held
stable., However, industrial f, dis¬
putes and labor unrest resulting
in
the
from the
reduction
in
40
Exchange Place
our
! New York
Trading Department
4
take-home
Bell&
Co.
became serious problems as
the year came to a close.
V
*
' The solution
of
industrial
dis¬
the
nation
in
the
We Are Pleased to Announce That
MR. MORTON LACHENBRUCH
com¬
ing months. Many of the difficul¬
ties of shifting
to a peacetime
economy had not fully emerged
by the year end. Owing to the
rapid
demobilization
armed
be
forces,
able
tries
in
to
the
of
the
civilian
'has
us
become
in
associated
New
our
■
t
s
"
INCORPORATED
.
.V
....
Investment
1
'
Securities
1500 WALNUT STREET, PHILADELPHIA 2, PA.
with
Washington, D. C.
York - office
-
Boston
Easton
Harrisburg
Portland, Me.
Allentown
;-..f
BLAIR F. CLAYBAUGH & CO.
not
new
labor
,
the
industry will
absorb
■'j
<^
r\
putes is not the only problem that
confronts
-
'
pay
;
of
us
NEW YORK CURB EXCHANGE
many
and
the association with
members
ever,
.
announce
en¬
force
quickly enough to prevent rising
unemployment.
Large
deferred
demands
for
?.
Member
:
Member
72
WALL
Philadelphia Stock Exchange
York Security Dealers Ass'n
.
;
;
New
STREET, NEW YORK
Telephone WHitehall 3-0550
'
■
5,
N.
We
Y.
are
pleased to
announce
that
Teletype NY 1-2178
•
many
types
of
(Continued
consumers'
on
page
and
Syracuse
•
*. Harrisburg
.:'
Own
Pittsburgh
.
Private
Wire
Miami
Beach
P.
System
M.Conway
139)
and
We
arc
Mr. Edward J. Rolian
HODSON &
Charles C.
pleased to announce that
has been admitted to
COMPANY,
.
Inc.
in
Kiii.vt;
general partnership
our
&
have
39
January 7th,1946.
Broadway
positions with
our
organization after their release from the
Company
TI.«
Broadway, New York
their
King
Armed Forces.
firm
United States Government Securities
165
resumed
New York
BANKERS
1111
JANUARY, 19A6
in.
♦Speech by Lord Keynes in the
see
no
anceDt the
these
We
Yet ,1
would
,
1945.
ing
*.
the
the
well
that
by
the
what"®1—
one
_
Washington.
from
sphere to
lace
totals in the first half of the
year
which were more than offset
in
TIT
How
however, to higher
part,
the,drop
_f»
of
sympathy and understanding un¬
less he could, to some extent at
least, bring himself to appreciate
$196 and $160 billion, respectively,
only slightly below 1944. This was
due
.
climate
hemi¬
one
other.
national income for the year
whole are expected to be
as
product
what
some
and
_1!
^
the
-
Let
Business
war.
Taxes
of
lantic and that
Upholds
Enforcing Fair Employment Prac¬
fea-
Henry A. Wallace
omy
;
Poll
nounces
waste
the North At¬
and the Annual
enough to teach
1L
moref
than the win¬
Have Yet to Achieve Full
ment
here from
us
Much
are
L
*ir*
separates
'
Employ¬
Wage, and
1946. The text Urges That
Opportunities Be Given
o f
Secretary tq
Buy Farms at Fair Prices. De¬
continue
may
through out
a
That Loan
By HON. HENRY A. WALLACE*
and
Guide for
a
Strong Britain but Are Unwilling
Compromise Their Business Interest for Its Attainment. Expresses Regret
to
All Americans
*
V-J
'
•
,,
Wallace Sees Shift
Incorporated
BOND
c.
■"**
LOUISVILLE, KY.
".
THE COMMERCIAL &
Thursday, January 10,
FINANCIAL CHRONICLE
mated at around
Stemauer Resumes
LINCOLN, NEB.—Steinauer &
Company, Inc. has resumed the
investment business with, offices
in the First National Bank Build¬
is
ing./ Principal of the firm
Wm. Hoffman Co. Admits
Theodore W. Winter has become
a
Wm". P. Hoffman &
Greenwich Street, New
City, members of the New
partner in
Co., 120
York
York Curb Exchange.
in an area bor¬
with a combined esti¬
mated population of 63,000, including Sheboygan, Ludington, Traverse
the age of sixty-four.
Mr. Saun¬ City, etc. This is normally a tourist and vacation area, but there is
ders retired from partnership in
some small manufacturing business in addition to farming and fruit
Coke
Davis Coal &
the
Drug
Emerson
Dead
R. A. Saunders
Terminal
Bay way
dering the eastern shore
Davis & Com¬
firm of J. W.
pany in 1944 after
with the company.
Common
stationary for some years,
almost
DES MOINES
served
by the
Members
York &
New
Baltimore Stock
exchanges
Exchanges and other leading
ing the same
CALVERT ST., BALTIMORE 2
Bell Teletype BA 393
S.
0
York
New
Telephone
Iowa Power
2-3327
Rector
residential
&~Light Co.
Gross
United Light & Rys.
BOSTON
,
The
IOWA
Bell Tele. DM 184
Phone 4-7159
;
BUILDING
9,
earlier, de¬
•; -vV
operating plant includes 13
hydro-electric, one steam, and two
Diesel
plants.
Common
stock
etc.',-*•
MOINES
In the nine
COMMON STOCK
average
DETROIT
company
each
year
,
since
Electromaster, Inc.
Common
;
^
..
Bag & Paper Co.
Sheller
1910,; except
1933-1935.
Stock
Grinnel! Corp.
Manufacturing Corp.
Common
Stock
Selling about 28% .below net
asset
Descriptive memorandum
.
■
-l
•
■; *
..
.
\
Pont, Homsey Co.
BOSTON
Capitol
4330
Buhl Bldg.,
fit., Philadelphia 3
Petthypacker j8£00
PH 30
Private Phone to N. .Y. C.
COrtlandt 7-1202
Detroit Stock Exchange
«
Detroit 26
\
A
Tele. DE 507 f
Cadillac 5752
Bank Building
Shawmut
BOENNING & CO.
1606 Walnut
& Dolphyn
-
Members
du
request
Mercier, McDowell
request
on
if
r.
furnished on
Reports
value.
9, MASS.
CRAND RAPIDS
Teletype BS 424
*
Dealer Inquiries
Invited
Philadelphia Co. common
TRADING
MARKETS
of power, as
Botany Worsted
Michigan Securities
Mills pfd. & A
Empire Steel Corp. com.
Central Steel & Wire
Markets
Dependable
Vinco Corp.
Boston & Maine Prior Pfd.
John Irving
Inquiries Invited
New
England Lime Common
Submarine Signal
H. M.
Members
Detroit
GRAND
Street, Boston 10
Private New York
;V:
Diesel
tion
reported earnings
Telephone
Byllesby & Company
ers
Power.
Phone
2
Rittenhouse 3717
/
Tele. PH 73
times
compared with an
around 17 for all electric
as
possibility.
Basically, however,
■/:
year's gains were due prin¬ the territory has limited growth
possibilities and doesn't have the
cipally to an increase in gross of
possibilities of Texas,
$113,000 while expenses gained dynamic
Florida, and similar areas.
only $45,000, and Federal taxes
Up to 1940 the company was
$15,000. No excess profits taxes
were paid
prior to 1945, but the controlled by a holding company,
interim
nine
months' statement Inland Power & Light, formerly
in the Insull system. In that year
indicates that such payments were
being made this year. The com¬ a syndicate headed by Otis & Co.
of Cleveland offered the stock to
pany next year will enjoy a 55%
reduction in excess profits tax the public at $14.25 a share. Dur¬
payments and a 5% decline in the ing the four years following quar¬
regular, income tax rate. These terly dividends of 250 were paid
savings -are difficult to estimate regularly, and the stock had an
since separate figures for the two over-counter range between 7Vz
kinds of taxes are not available and 16. This year, with the general
for 1945, but it seems possible that advance in utility equities, ft has
such savings might aggregate as advanced to around the 22 level.
much as $20,000, or about 230 a It seems unlikely that the divi¬
share, on the basis of estimated dend rate will be increased until
the bank loan is liquidated, but
1945 operations.
continuation of the recent
The company has a rather com¬ any
sharp up trend in earnings might
plicated
capital structure with
nevertheless prove a market fac¬
(until recently) two classes of
v
/'v/,
bonds and four issues of preferred tor.
stock. However, on Dec. 1 the en¬
tire $375,000 debenture 4s were
Called at' 102, and on Jan. 1 the
entire 835 shares of 7 % preferred
were
retired! at 107. The funds
ST. LOUIS
LOUISVILLE
obtained by a serial bank
loan at 1%% interest. Eventually
were
"
American Turf Ass'n
Common Class "A"
Girdler
Capacity-—900,000 barrels annually.
•
Book value—around $18.
-■
earnings
all
through
war
period.
•/ „■.
Company would benefit substantially from tax reduction.
Oregon's
huge
highway
program
ready to start.
Market
about
OFFICE
BOSTON 9,
Tel. HUB 1990
-
Gas
INVESTMENT
Pref.
509
Winn & Lovett Grocery
v
UTILITY
PREFERREDS
SECURITIES
OLIVE
STREET
★
★
St.LouisLMo.
12%
★
<
IE BANKERS BOND El
Circular available
POST
■'
PUBLIC
Stix & Co.
Corporation
Louisville
Incorporated
LERNER 8c CO.
JO
'
Hialeah Race Course
•Good
\
1st
SQUARE
MASS.
.,
Teletype BS 69
Members St.
Louis Stock Exchange
Paine, Webber, Jackson
Floor, Kentucky Home Life Bldg.
LOUISVILLE 2, KENTUCKY
ESTABLISHED
1879
& Curtis
Bell Tele. LS 186
Long Distance 238-9
PHILADELPHIA
UTICA. N.Y.
*Gruen Watch Co.
CINCINNATI
Utica & Mohawk
General Public Utilities common
Cotton Mills
Midland Realization common
CINCINNATI
*
'
SECURITIES
Bowser, Inc.
Midland Utilities
Co.
■"Makers
*Memos
on
Request
Grischy
CINCINNATI
2
Teletype CI
7
'
Los
1529
York, Philadelphia and
Angeles Stock Exchanges
Walnut Street, Philadelphia
New York
t
2
MOHAWK VALLEY
INVESTING COMPANY
Los Angeles
Hagerstown, Md.
N. Y. Telephone—WHitehall 3-7253
INC.
Pittsburgh, Pa.
Private.
Wire System
Midland Utilities common
Sheets''
INQUIRIES INVITED
BUCKLEY BROTHERS
UNION TRUST BLDG.
of Utica &
Mohawk Percale
Members Neio
Horan &
returned
American Barge Line
Oregon Portland Cement Co.
•
William V. Simone has
from overseas with the 13th Air¬
might be able to re¬
borne Division and has been ad¬
fund its 3V2% bonds on a lower
mitted to partnership in Wm. E.
coupon basis? and also refund and
Lohrman & Co., 76 Beaver Street,
consolidate
the three 6%
pre¬
New York City.
In the past he
ferred
stocks.
Possible
savings
was
associated with Ralph C.
(less increased taxes) from recent
Morgan & Co.
and potential refundings are esti¬
K
:
,,
,
.
Teletype GR 184
REctor 2-5035
We Suggest
,
Despite the sales growth which
has
already
occurred,
average
residential
consumption is still
well below the national average
and with the fuller resumption of
resort activities, further gains in
revenues
and earnings appear a
the company
Bldg. Phila. 2
Stock Exchange
Stock Exchange
RAPIDS
Phone 94336
com¬
buys about 10-20% of its
total requirements from Consum¬
in Wm. E. Lohrman Co.
MICH. TRUST BLDG.
v
Normally, the
set-up.
pany
W. V. Simone Partner
^
PHILADELPHIA OFFICE
white, noble & co.
75 Federal
'■
Shoe common
Warner Co. common
Dayton Haigney & Company
well as use its steam
plant.
However,
the
plant constructed in 1941
has improved the. power distribu¬
stand-by
»
Boston Edison
might
amounts
company
This
Southern Advance
in United States
the
buy substantial
stocks.- ;■
The"oldest leverage investment
Outstanding Record of paying
dividends on
common " shares
as
to
have
$1.65 compared with $1.01 in
the same period of 1944. In the
last
quarter of
1944 410 was
earned, and this year 600 would
seem
a
possibility, bringing esti¬
mated net for the year to $2.25,;
On this basis the stock has been
earnings,
above,
conditions
of
selling recently at about ten
high
as
months ending Sept.
30 the company
which re¬
subjected by
transportation facilities,
of
lack
DES
ft> 4.230.
improved
have
revenues
sort areas have been
Railway and Light
EQUITABLE
1938
spite the handicaps to
Co.
Common
Securities Co.
1939
period the average
per
kwh.
steadily since 1938 or
Preferreds
Rath Packing
1940
revenues
dropped from 5.050
have
Preferreds
1941
various earnings
the
on
of
future earnings
$3.00 a share would
seem a possibility. However, past
earnings have been somewhat er¬
ratic, and in periods of low water
follows in
1.70
1.88
1.62
1.00
.36
1942
in 1944. Dur¬
kwh. in 1939' to 995
INCORPORATED
1943
improved from 804
customer have
WHEELOCK & CUMMINS
Based
estimates
—,—$1.42
1.66
1944
sales per
intangibles.
2%
and
Depreciation reserve is 15.7%
plant.
recent years:
has im¬
company
amortized)
population having been
—
earnings have been as
customers
of
number
the
proved moderately and
STEIN BROS. & BOYCE
100 communities,
of Lake Michigan,
"growth" territory, : the
<s>
growing. It is not
forty-six years
but
Bait.
Fidelity Trust Co. of
preferred stock 11%, and common
stock equity 33% as of Dec. 31,
1944
(these ratios will be im¬
proved by the recent redemp¬
tions). Of the gross plant account
of $8,592,007, 90% represents orig¬
inal cost, 8%
additional cost (a
substantial part of which is being
Michigan Public Service
Reginald A. Saunders, Sr., re¬
tired investment broker, died at
55 %,
satisfactory—debt
appears
Michigan Public Service serves
stock.
company's capital structure
The
Edmund Steinauer.
BALTIMORE
$38,000 or 450 a
share;on the common
»„
1946
between
Philadelphia, New York and Los Angeles
238 Genesee
Tel. 4-3195-6
Gilbert J. Postley &
29 BROADWAY.
St., Utica 2, N.
Y.
Tele. UT 16
Direct
Co.
NEW YORK 6, N. Y.
Wire to Chicago
Volume
163
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4454
-
Higher Expenditures in 1946
^
1
Despite Lower Income
Business Forecaster Predicts
^
More Goods Will Be-Sold in 1946
Than in Previous Year and That Retailers'
Profits1Will Remain at
High Level. Urges Retailers to Take Advantage of Situation io
Modernize Their Plants and Increase Employees' " Efficiency by
/
,/
Raising
.?
Secretary of State Asserts It Marks Progress Over London Parley
Impasse.; Concedes Many Problems Still Unsettled and Defends ]
Organization of Far Eastern Council. Says Russia Did Not Inquire /
•Regarding Scientific Nature of Atomic Bomb and That Interna¬
-
;
tional Commission Has No
;
Wages.:>;Y.V^/// /'/A',;//'./'
*
]
Pomeroy With Hutton
In Los Angeles
/;
■
Moscow- with
Foreign
B
k,
e
m
o
Economist
tional
dise, most of which pass over re¬
tail counters."'
"
y
tical
Bureau,
In Cm
who
spoke before
the Smaller
:
Re¬
tail Dry Goods
Most
8,
co ns
on
1. To
umers,;
regards
modernize
layout,
store
layout and the entire
physical handling of merchandise,
however, will
begin to be
stockroom
much /more
and
critical
of
price
and
,1
in
"Income
was
194-3
A.
close to $160
represents
billions.
other
In
purchasing
ditures
are
of, say, $18 bil¬
it, then, that expen¬
return of many
scheduled to increase?
mally sell at
"First of all, there will be a re¬
duction of personal : income taxes
amounting
That
remainder
be
will
items which
store as
whole and
a
a
favorable
margin.
gross
:
consumers
Bodenheimer>
Vice-
irftome.
President of The May Department
Stores
Company and for more
1944, despite the high level of
income taxes, this ratio increased
than 30 years a prominent figure
in the merchandising field, died
8%
about
of their
In
to,
approximately
25%.
People
saved because they couldn't spend.
In 1945, since V-J Day, the rate of
on
62
current
savings has begun to drop;
proving rather conclusively, I be¬
lieve, that most people will spend
than
rather
go
save—that
back to their
rapidly
as
make it
v.,-,/,/'
'
.
■
pany
textile-apparel
available.
In
items
1946
that
there
will
be
house
furnishings,
broader
travel
and
portunities, plus
a
homes,
new
Vacation
•
dle
bigger physical volume of
goods in 1946 than in 1945; that
their
whole postwar
operation
will be on a grander scale; Every
improvement in the living stand¬
Vice-President of the
Mr. Bodenheimer served
as an ex¬
ecutive of A. B. Kirschbaum
; "
not
at
referred to the
many
was,
as a complete
I think, the discus¬
sions at London that
greatly
previ¬
Truman's
President
to
reach
helped
us so
agreement
op
machinery at Moscow.
-:
The agreement at Moscow meets
our insistence that all states which
peace
James F. Byrnes
ously
and
published elsewhere in this issue.
The text of Mr. Byrnes' address,
as released by the State Depart¬
With
.
took
an
active
in the war
should participate in the peace. It
also
frankly recognizes the re¬
part
sponsible role of the larger powers
in the making of peace,
v
Powers to Draw Up Peace Terms
Our agreement is that the terms
of
ap¬
peace
in
the
first
instance
proval and encouragement I had
should be drawn by the principal
urged the calling, of this meeting
in fulfillment of the understand¬
powers
ing
which-were signers of the
respective armistices. But it was
that the decided that as soon as these
secretaries should, terms were drawn up they should
be submitted to a peace confer¬
three or four months.
at 'Yalta
.reached
three
foreign
well
was
risk
the
of
aware
ence
be
on
suggesting this meet¬
able
the
I
cussion.
reach
to
the
knew
States,
the
Soviet Union,
Great Brifaih, France and China,
who constitute the Council of For¬
eign Ministers, and
agree¬
under
points
called by the five states—the
United
without any definite assur¬
that the three governments
ments
nent
dis¬
members
are
of
the perma¬
the
Security
an¬
Council of the United Nations. AH
other impasse such as occurred in
London. I felt this risk had to be
taken,
It
risk
r,
.
is
of
stand
each
are
•
In
this
events
modern
,
with
world
sion
called not later than May 1.
and
The
conference
will
be
/:
consider
the draft treaties
prepared by the
States that signed the respective
where
helpful
at
once
even
lead
of
Philadelphia,
clothing
Co.,'
minds
to
and
armistices.
The
Peace.
Confer¬
Conference and prepare the final
texts of the treaties to be signed
in-,
useful and
though they do not
to
a
the
by all States actively at war with
the enemy States in question.
agreement. They
meeting
of
reconciliation
differences.
In
in
contact
are
I
the
the
Council
do
ideal.
of
v/Z-vv?:.
September
not
consider
But
the
this
departure
the ideal standard is
of
(Continued
solution
on
more
page
from
in the
142)
manu¬
Mr. Bodenheimer is survived
his widow,
heimer;
H.
Loeb;
Mrs.
a-son,
Leon, Jr.;
Aranow
Frank
a
Funeral services
terday
at
were
/ Universal
whiskies
"war
are
pression?
We'll start by saying that we
treat this
Schenley produces
number bf
a
straight whiskies, bonded whiskies
and blended whiskies. We
the
best
world's
NEW
known
are
also traded
on
'4.
^
i
*'■
t
f
Now here
the facts.
are
traded
on
the
The in¬
creasingly popular standard brands
of blended whiskies available, today,
are of as fine a quality as have ever
been produced in this country. We
say
'increasingly popular/ be¬
cause long before the war created
shortages, the American consumer,
a
growing preference for
lighter type of alcoholic bev¬
erage.
This trend is not confined to
the British
years,
a
number of
the the hours of 10
a.
m.
and 5:30 p. m.
creasingly, for lower proof, light
bodied, blended Scotch whiskies.
Now, how about "straights" and
"bonds?"
Well,
they
because many of these
are
scarce
superb aged
straight whiskies, made in the
are
being laid away for aging. When
they are properly matured, they
will be
"straights" and "bonds"
for those who may still
heavier
whiskey,
desire the
A good blended
types.
blend of
and
grain neutral spirits. Grain neutral
spirits is a highly refined alcoholic
you
flavorful,
know* is
straight
a
whiskies
over our
spirits,
creates
&
that
as
of blended Scotch
a
charac¬
We conclude by
INVESTMENT
,; /,
,T-% •'/ •••' ■
;
'
Members New York Stock
.
Other
Direct Private Wire
/
.
■ ;
■
Exchange and
Leading Exchanges
NEW
NEW
STREET
YORK
ited not in the
dear
of
fine quality
.
The
today, is lim¬
quality he can buy, but
in the variety of types available.
Well,
anyway ^telling you
this is
making good at least one of our
'resolutions'.
INVESTMENT SECURITIES
BROKERS OF BONDS, STOCKS, COMMODITIES
MEW YORK STOCK EXCHANGE
PINE
are
American consumer,
BANKERS
own.
you,
high-grade blended
that
reader,
telling
MEMBERS
.
ZO
na¬
,
:
Co.
end
an
American
same
UNDERWRITERS.AND DISTRIBUTORS OF
Kaiser
same
body. The proof at which these
whiskies are bottled is about the
A list of these stocks is available
upon request
Quotations and executions
promptly handled
pre¬
used to make the
popular blended whiskies. New
whiskies, now being made, are
period,
war
whiskey flavor
characteristics, plus lightness of
YORK STOCKS
(E. S. T.)
like¬
consumer,
wise, has shown his preference, in¬
tive
;
New York Curb Exchange
of
Scotch
product with all the desirable
Funeral
the San Francisco Stock
Exchange between
one
blended whiskies.
whiskies
Twenty-nine stocks
also
are
distributors, in America, of
teristic 'native' flavor of its
IN
can
subject fairly, because
types of native American whiskies;
neutral
his
Chapel, Lexington Avenue at 52nd
FRANCISCO TRADING
of
"straights" and "bonds". May we,
then, correct this erroneous im¬
whiskey. The latter has
SAN
ba¬
of the scarcity
bies" because
.
held yes¬
Street, New York City."
blended
key The skillful blending of flavor¬
ful, basic/aged whiskies, and grain
mother, Mrs. Max Bodenheimer.
a
•
are un¬
der the impression that present day
grain which is used to make whis¬
sister,
and
whiskey consuming public
distillation, made from the
by
Mrs. Elsie May Boden-,
daughter, Mrs. Thomas
a
;
America alone. For
to
to be
seem
members of the
some
indicated
is
are
\
i
Apparently
this
The Peace Conference
lightning speed
and personal
ternational affairs
whiskey,
which
i,.
we
rampant, here and there, regarding
substantial
pate in the conference.
/.'/■//.'/,,,//:'/;■
move
Beginning the New Year,
resolved to try to correct some mis¬
the Axis will be invited to partici¬
gen¬
problems
By MARK MERIT
actively waged war
military force
against the European members of
effort to under¬
an
other's
/
Resolution
:
states
,
just when there
troubles.,
.'; SCHENLEY DISTILLERS CORF.
with
uine difficulties in reaching agree¬
ment
that
foreign
secretaries
should meet in
j
understandings which
■
agree
facturers.
op¬
"It goes without saying that re¬
tailers. on the average, will han¬
a
Com¬
Sostman
May Department Stores Company,
bigger and bet¬
ter supply of the same items
you
sold in record volume in the past
few months."
/,
:
failure, it
contribute
were
radios, appliances, automobiles, a
greater supply of 'furniture and
and
the
Stores. Before his association with
the gift items and
to
of
parent company, May Department
mek warned. "In this past holiday
the consumer had no choice
turn
London, and
war
participate
,
season
to
to
could
we
handles
President
reli¬
able indication for 1946, Mr. Zelo¬
but
part'in- the
allowed
London conference
Issued
fellow
our
delegations
purchases for the there is not time to wait for agree¬ ence will then draw
up its own
May stores in St. Louis, Cleve¬ ment to be reached by the slow recommendations. After
that, the
land, Denver, Los Angeles/Balti¬ exchange of diplomatic communi¬ States which
prepared the pre¬
■ \;
more
and Akron, Ohio. In 1933 cations.'."-'
liminary texts will consider the
Mr.
Bodenheimer ; was
elected
; We must
realize that discus¬ recommendations
of
the
Peace
Spending tendencies during the
holiday shopping period
a
of its New York subsidiary,
Mercantile Company,
which
recent
should not be regarded as
assistant general man¬
as
Sostman
Criterion
No
1926
ager
as
increasing supplies will
possible."
'
habits
old.
years
Mr.
Bodenheimer
joined the
May Department Stores Company
in
they will
prewar
was
be
stat¬
ed in the joint
communique
Jan., 7 at his home at 785 Park
Avenue, New York City. He
active
an
While
g reements
ing
a
treatf
peace
other
arrived at and
would
M.
Leon
the
upon
view that all states which
in the peace.
formally
ance
be the most potent influence
saved
took
should
na-
involve# in
;\v:
the European
up
took the
of the
meet every
May Dept. Stores
in the retail sales trend.
war
a
agree
armistices. The
ex-'
plain the
tur e
to
ah advertisement whier
hope wilt be of interest to
A mericans. This is number! 12 of a series.
made only by the principal powd¬
ers who had signed the
respective
theta Ik.
to
unable
NOTE—From time to time, in this space,
there mil
appear
we
sition that the
purpose
was
I
1
the
of
—-—j
ies. The Soviet Union took the po¬
treaties should be
ar.
Union.
The
more
abnormally high rate of current
savings. This factor, during 1946,
"Before
ing'
Viacheslav M.
nor¬
high price and with
a
directly into a favor¬
able average sales check for the
than made up by a decline in the
will
mites
ora
—
procedure to be followed in draw/
and the Soviet Union at Moscow.,
translated
about $6 billions.
only about $12 bil¬
lions of lost purchasing power to
'■"make up.
''-/r^/''/"
;
"This
talented
the
for
relatively large mark-ons will be
to
leaves
industries
of
Britain
and Foreign
C
«—
been
ment, follows:
people who are now begin¬
The purpose of my talk tonight
ning to plan their careers, //-/v./. is to render a
report on the recent
The profit outlook for the av¬
meeting of the foreign secretaries
erage department store is favor¬
of Great Britain, the United States
able, Mr, Zelomek concluded. The
power
lions. How is
,//
efficiency
ANGELES, CALIF.—Wil¬
to Its Use.
as
Foreign Ministers at London had
young
loss to the stream of
a
the, added
salary payments to a point
where retailing can compete with
probably range be¬
$140 and $145 billions. That
tween
Using
and
Zelomek
W.
will
it
2.
,
this gives, to raise individual wage
quality.
1945
»-■*
Sec¬
Ernest
vin'
e
Great
Soviet
this and
the problems it creates as a great
challenge to retailing. This sudden
jump in unit volume gives retail¬
ers
an
opportunity, perhaps the
only one in this generation of
store-keepers, to do two things:
sion of the
Jan,
Zelomek
Mr.
-
retary
»
Molotoy of the
V Retailers' Opportunity
'
Stores Divi-
Association
can
merchan¬
.
Statis¬
National
public
American
the
be measured in tons of
Interna-/
/the
of
ard
of
LOS
liam N, Pomeroy has become associated; with E. F; Hutton & Co.,
623 South Spring Street.1
;
SCHENLEY DISTILLERS CORPORATION
for
Z e.i
r
t
Authority to Bind Nations
Secretary of State James F. Byrnes addressed the nation by radip
one-halt hour on the night of Dec. 30 on his recent
meeting at
'
:
Consumer expenditures in 1946 will be greater than the record
total of 1945 despite a declining trend of income, according to A. W.
.
129
YORK CURB EXCHANGE
SAN RRANCISCO STOCK EXCHANGE
5
isaa
SAN
russ
builoinq
FRANCISCO
4
Private Wires
•
Home Office: Atlanta
•
Phone LD-159
FREE
mark
—
Send
a
postcard
or
letter to
merit of schenley distillers
Fifth Ave., N. Y.1,N,Y
and you will receive a booklet contain¬
ing reprints of earlier articles on various
subjects in this series.
corp., 350
COMMERCIAL & FINANCIAL
THE
130
Trading: Markets
Corporation, in its annual report, disclosed de¬
tails of a projected $8,500,000 expansion program, which will greatly
increase its manufacturing capacities both in this country and abroad.
Electric
^
Established 1922
Salle Street
CHICAGO 3
Tele. CG 271
6960
CARTER H.C0RBREY& CO.
National Association
Member,
of Securities
Dealers
Middle West
SECONDARY MARKET
DISTRIBUTION
planned for St. Paul
and
as yet undetermined
location in the Southwest;
and
capacity of the company's Seattle
carbonic plant is to be doubled. A
new
plant under construction at
Morrison, 111,, will manufacture ice
cream freezers and a new line of
home freezers.
Upon completion
of the proposed expansion pro¬
gram, the company will have 40
compressed gas plants, carbonic,
oxygen,
acetylene
or
riitrous-
plants
are
for an
LOS ANGELES 14
13S La Salle SL
650 S. Spring St.
State 6502
CG 99
Michigan4181
CHICAGO 3
Consolidated Gas
Utilities Corp.
cxide iii this country.
Corp.
The Chicago
Circular
drinks abroad over the
years,
HICKS 6- PRICE
Members Principal Siock Exchanges
Chicago Board of Trade
231
ST., CHICAGO 4
SO. LA SALLE
York Office
Wall St.
1
-
The
foreign
its
expand
plans
company
of high-rate securi¬
bonds and preferred
stocks, at lower interest rates by
packing companies will also in¬
crease
share earnings going to
common stockholders* they point
out.
Cudahy might be cited as
an
example.
The " company re4
Refunding
car*
Santiago. Nego¬
operations
similar
for
tiations
both
ties,
for Mexico City,
Venezuela, Brazil, and a second
and Colombia are;
*
J
Com.
to
Inc., Pfd.
Prospectus Available on
Request.
Pmi H.Davis 6c Go.
Established 1916
Principal Stock Exchanges
Chicago Board of T rade
;
$1.91
corporation
ended Sept. 30,
the
after preferred, which was redeemed,
requirements still been outstanding, common
share* compared with share earnings on the basis of the
$1,747,401, or $2.22 a share, for the
f
preceding year.
Net working
1945
old capitalization
would have been
Net in¬
equal to $4.12 a share.
1944 fiscal
634,683 the year before,
come
of Cudahy for the
year
was
$3,190,061, equal after
preferred
capital at Sept. 30,
$13,316,747 against $13,-
was
dividendrequirements
Members
Indianapolis, Ind.
- Rockford,
Cleveland, Ohio
We
V
pleased to
are
that
announce
WILLIAM e. SILLS
jg
r
:
Howe and
mitted
pioneer
bond .. houses of the
country, according to an announce¬
is
This
by John!Nuveen, Jr.
first time a partner
the
other
of
rock fields in the country.
Nuveen, founder of
John Nuveen, Jr.,
head of the business,
John
been
and
the
firm,
the
active
who.
admitted to partnership
was
'
in 1923.
.-v.., ;
:
\
Mr. Howe has been with
the or¬
ganization since , 1936 and is head
of the firm's sales activities.
Mr.
Florida, near what has been char¬
as the richest phosphate
Laing joined the firm in 1932 and
heads its buying department.
:
Another
tional
V
,
.
Sears, Roebuck and Co.
its
sume
,
•
-
will re¬
of decentraliz¬
program
functions with
ing administrative
the establishment
CHICAGO, ILL.—Brown, Ben&
Johnson
has opened
a
nett
branch office at 39 South La
of an auton¬
omous
eastern territory operated
from Philadelphia and a southern
Street
territory operated from Atlanta,
Feb. 1. The program, interrupted
of
Salle
Bennett Bros. & Johnson.
management of
Frederick F. Johnson. Mr. John¬
son
in the past
the war, will follow the pat¬
in 1940 when a Pacific
by
territory
set
was
up
Now
with
that the ratio
stated
board,
only partly the
was a
partner in
V
Corporation
CHICAGO, ILL.—Rodger, Kipp
incorporated, with
President and
Treasurer, and Austin G. Kipp as
&
Wood, Chairman of
E.
the
under
tern .set
is
Co.
now
Arthur T. Rodger as
result of the war¬
and
Vice-President
Both
Secretary.
partners of the prede¬
were
firm.
cessor
and is
Bought—Sold—Quoted
us as
the Board
SPORT
Drive
*
partnership in the firm
Co., 135 South
to
municipal
of / the
Auto Company
Howard
Laing
La Salle Street, one of the
•,
Corporation
Four Wheel
•'
.
of John Nuveen &
by which Pacific Coast sales led
other sections of the country was
USNR
again associated with
Chairman
• •.
.
CHICAGO, ILL.—L. L. J. Howe
and C. W. Laing have been ad¬
acterized
the
""5®
has been released fxjom active duty
Central Coal & Coke
t_
.
John Nuveen Admits
'
Lt.
1
-,
749,000 than a member of the Nuvepn
shares
of $5 par value capital family has been admitted to the
common
stock
and a $186,770 firm; which was established in
minority interest in a subsidiary, Chicago in 1898.
Partners have
Robert
III.
,
included, General Wood stated.
headquarters in Los Angeles.
Teletype CG 405
Tel. Franklin 8622
is¬
now
of merchandise
assortment
the
ment
consisting
company,
Coast
St., Chicago 3
10 So. La Salle
of
change Commission.
'•t
dividend
a
Sears
separate catalogs, each
which differs markedly in
Since founding nearly 50 years
$1,000,000 will be spent for addi¬
year, the firm has underwritten
processing facilities and the
and distributed State, county and
balancp of the proceeds will be
municipal bonds exclusively. - It
#tided to working capital. \
' now has offices in many principal
[*■ U$dn;completion -df'the Cxp&rH
cities of the country.
^
ported net income for the fiscal sion " program, Walter B. Brown*
Vie-President, stated,
year ended Oct. 27 of $2,505,097, Executive
equal
after preferred dividend Victor will be the largest com¬
requirements
on
the presently mercial producer of phosphorous
outstanding 4Vz%
preferred to in the world.
in
*'
*'.*•■'
'
''!•
^
; ''V."' 1«1-.['
$4.40 a share.
Had the 6 and 7%
$1,522,585, equal
was
preferred
Wells-Gardner & Co., Com. 1
*Woodall Industries,
*
1945
Com.
Globe Steel Tubes Co.,
of
income
for the fiscal year
the
10
sues
rate are to be an¬
A registration
statement has already been filed
with
the Securities and Ex¬
capitalization
territories,
the,
ing organization.
later.
Present
of
parent office in Chicago serving
and dividend
nounced
responsibilities
them only as a centralized buy¬
designed to increase its
volume by 40%.
Price
t
Net
tives
program
sales
Southwest. All
for the
will be lodged with the execu¬
Eberstadt
F.
addi¬
the
for the Middle West
one
administrative
to finance an expansion
,
coming
new
Co.
&
by
headed
dicate
with
territories
and one
will be increased through the sale
greater part of the ■£ of the new preferred by approxi¬
Elimination of; mately $4,000,000.
There -is no
the excess profits tax will off¬
funded debt.
V
set any reduction in operating
Approximately $5,200,000 of the
income and help maintain earn¬
proceeds will be used to build a
ings at a satisfactory figure,
new
electric furnace
plant ; on
they declare.-Cy;; r i,.... * ;': tidewater
property in western
pending.
Central Steel & Wire,
five
tion of
1946 fiscal year.
plants
bonic
in Argentina
*Burton-Dixie Corp., Com.
Ultimately the company will
probably divide the country into
taxes for the
<
.
prices
levels, and to
the benefits to be derived from;
the removal
of excess profits
present
to
close
$600,000 to
operations.
pend approximately
in
still
considerably above the 1935-39
pre-war average, and according
to investment analysts, outlook
for the 1946 fiscal year is good.
They point to the overwhelm¬
ing demand for meat products
however, profits are
which should help to keep
the company plans to ex¬
Cuban plant at
Randolph 5686—CG 972
New
,
Anticipating a large increase
in
the
consumption
of soft
Request
on
'
1945
earnings
lower
Despite
1945,
company's largest carbonic plant
is
already well under way at
Belleville, N. J.; new carbonic
UNDERWRITERS
the
declined on ah average
24% from the preceding year.
•
City, N. Y.
what will be the
Construction on
For
Co.—for
&
fiscal year
erected at Long Island
Pacific Coast
—
Hormel
A.
offices, showrooms and storage
and service departments will be
Wholesale Distributors
dom of decentralization.
debt from $20,000,000
$18,750,000 in the fiscal year
just ended, reported net income
Of $12,303,807, equal to $2.08 a
eemmon
share,
compared with
$15,662,635, or $2.64 a share in
1944. 1
/'•; ' • '
■; .■/ ^
Working capital of both com¬
and
holders
120 South La
Tel. Randolph
Packing
and Swift & Co. for the fiscal
Net income of Cudahy
subscription
Schmidt & Co.
its
panies
increased.
Net working
Co.
by common stock ¬
capital of Swift at the close of
unsubscribed shares, year ended Oct. 27, 1945 followed the 1945 fiscal period was $188,the trend of the industry, declin¬
if any, will be sold to investment
001,926 compared with $184,373,ing 27 and 21%, respectively, from
underwriters for public offering.
104 the year before, and of Cudahy
the preceding year. Armour & Co.
The
company plans to
spend and Joh,n Morrell & Co. have not $32,651,899 against $30,048,849 at
approximately $5,200,000 on new yet reported earnings for the 1945 the close of the preceding fiscal
plants and additions in the United fiscal period, but are expected to J year.
#
*
States. A new soda fountain man¬
shew; declines from 1944 levels.
Victor Chemical Works plans
ufacturing plant is to be built
Net earnings of four of the six
to offer publicly 40,000 shares
across
the. street from the com¬
leading packing concerns—Cudahy
of $100 par value cumulative
pany's main factory buildings in
Swift, Wilson & Co. and George
preferred stock through a syn¬
Chicago. A new building to house
new
C. L.
expansion.
The&
preferred will be offered for
the
finance
to
scaled
which
to
proposed financing program, calling for a new issue of 72,810
shares of convertible preferred stock of $100 par value, will be pre¬
sented to stockholders for approval at the annual meeting this week
Kropp Forge
territory", iand
the
experience
gained there confirmed the wis¬
1
share.
& Co.,
long-term
A
Globe Steel Tubes
.
Swift
Liquid Carbonic
1
Delta
to $558 a
Chicago Brevities
time industrial development of the
the 6 and 7% then outstanding
on
"
Thursday, January 10, 1946
CHRONICLE
INC.
PRODUCTS,
Common
Stock
\
Aircraft
will
remain
as
President
Dearborn 1501
:
CRDTTM HO.
"
:
Wtmltn fjtui
,
231 So. La Salle St.
available on request
S
COMSTOCK & CO.
CHICAGO 4
Memo
.
DAVID J. HARRIS
Corporation
Sills, Minton & Company
634 South
INCORPORATED
v'.
v '
Spring Strsot
LOS ANGELES
209 South La Salle Street
LINCOLN I, NEB.
TEL 2-3349
TEL. DEARBORN 0500
TEL TRINITY 634S
C T ~
First National Banlt Bld<j.
Chicago 4, Illinois
14. CAL.
Teletype CG 257
O IS I
.
and Cbcayo Slock SicLmjo
1Jarl> Slocl
PRIVATE
WIBCS
TO'
(MI
COASTS
WtST
ANO
SINCE 19081
Fred. W. FairmanCo.
Members
phicajro Stock
•
Chicago
Board
We have analyses of
General Box
Trade
Write For
A
study of Midland Utilities
208 SOUTH
CHICAGO
Telephone
LA
4,
SALLE ST.
ILLINOIS
Randolph
4068
Copies
Sincere and Company
New
Members
and
Other
231
South
Direct Private Wire to New York
Bell
System
CG 537
York Stock Exchange
Principal Exchanges
La
Salle Street
CG 252
on
request
CASWELL & CO.
Stock
Standard Silica Corp.
Common
—
CHICAGO
Tele. CG
1122
208
York Stock Exchange
Principal Exchanges
So. La
Salle St.
CHICAGO 4
3, ILL.
Phone Central 5690
New
and other
Phone
Andover
1430
.
TRADING MARKETS —*
'
i
.
'
'
'
Walt Disney
•
"'
•
;'
I
'
i'
Productions* Com.
Lear Inc.,
Common
Hammond Instrument, Com.
Stock
FAROLL & COMPANY
Member
120 South La Salle Street
CHICAGO 4
State 2400
Request
Common
Mississippi Glass Co.
Bought—'Sold—Quoted
M-3—
on
Merchants Distilling Corp.
Common
Insurance Co.
Midland Utilities
Midland Realization
Analyses
Recent
;
Exchange
of
<
Missouri Life
Tele, CG 156
William A.FulIer&Co.
Members of Chicago Stock
209 S* La Salle Street •
Tel. Dearborn 9200
Exchange
Chicago 4
Tele. CG 146
Volume 163
' Number
THE COMMERCIAL & FINANCIAL CHRONICLE
4454
Holds Chief Reconversion Problem Breftton Woods
Is Restoration of Free Economy
Secy. Vinson Expected
In
and Bank
Fund and Bank.
Report to Industrial Conference Board, Prof. F. A. Harper Con¬
tends That Free Markets, With Elimination of Price and Profit
Controls, Is Essential to Our Traditional Economic Structure. Says
Administration's Reconversion Policy Is Dangerous in That It
Delays Reestablishing a Free Economy and Leads to Continued
Attempts to Guide National Economy by the Control Technique.
•
Denounces Profit Control
up
of its "Studies
i
Business
n
Econom i
factor
a
s"
determination
OPA's
in
of the
the
prices of various products.
Second, as discussed in a previous
section,, profits become, the un¬
Market"
fortunate heir of wage rates that
Crisis
Free
c
"The
entitled
of
b y >
F/
A.
ITarper, Pro¬
are
too
sion it
from
high;
be
can
fessor of Mar¬
rates
keting at Cor¬
nell
Univer¬
discus¬
that
if
wage
the
point
that
seen
justified
his
Prof.
sity.
my
Harper covers
all aspects of
governmental
prices,
and
>
tion,
duced
/ F. A.
,77'vV/".:',
for
a
goods and serv¬
ices and free enterprise
system as
has
it
developed in this country
"will eventually
lead to "irrep¬
arable injury to ourselves, to our
descendants and to the world."
s
Controlling Profits f
the
form
of
some
the
be
super¬
.
lifeblood
Instead
economic
would have
of
are
a~
and
enterprise
of
of
free
being
a
parasitism, as
believe, they
us
sustainer for
sort
function, of
relationship to
in
reconversion.
the
are
enterprise.
combined "starter,
the
entire
free
They are,
in part, the necessary inducement
to people to save and to risk those
savings in the capital structure of
effects
economy. '
nation,
They
is
Bought—Sold—~Quoted
Join Both Fund
to
WASHINGTON, D, C., Jan; 8.—-The organization
meeting to set
the International Monetary Fund and the Bank for
Reconstruction
Mortgages _7;
Treasury Vinson, since the boards
ber shall
of governors will meet
only a few
times a year.
the
Russia's
Fund
failure
and
Bank
to
5 %9
released
from
for
the, *
those
who
is
join
the
the
of
cause
only
can
be
provisional
quotas
it
cutive
countries
A
Zealand,
explained, were waiting for
the UK to. act first, and since the
meetings of their
have
own
executive
governments
j As for the other signatory coun¬
which have not
yet joined
BW, they are expected to join
later. Australia and New
ratification
the
They
self-employed
employers to
to
encourage
work,
use many
(Continued
and
"
and
had
for
shall
of
which
come
parliaments.
the
directors.
If
until
until
Jan.
they
they
it is
one
exchange controls, but now,
believed, has been persuaded
to
fill
become
1,
directors
elected
accordance
-
Section 3 of Article XX of the
above, reads
L Sec.
follows:
as
..
3.7 Inauguration
Fund,— (a) As
soon as
in
en¬
Seven
Active
*
or
is
Trading Markets
American Service Co.
Preferred, Class A and Common
i
provisional
shall,
R. Hoe &
be
with
the
provisions of Schedule C anc[ shall
to
remain in office until the date of
•
*E. & G. Brooke Iron Co.
the first regular election of execu¬
of / the
Interstate Aircraft
tive directors which shall be held
this Agree¬
as
ment enters into force under
Sec-
\x
,s
Co., Inc.
Common
Common
;Y:
.:
Tele. CG 573
vacant
members,
executive
Fund
referred
Chicago 3, III.
Tel, STAte 4950
more
1946, whichever
Colombia
Agreement,
135 South La Salle Street
exe¬
be
remain
the V earlier.
Fund
KITCHEN & CO.
five
largest
or
would
shall
to leave this question to the
Fund.
1
>
'
members, the executive di-
rectorships
of its
agreement, but not the Bank.
Stock
-
'
the
appoint provisional
titled
the
•
forth in Schedule
are set
Venezuela wanted the United
States to consent to the retention
signed
CORP.
Common
of such governments have not be¬
no
{
has
KAISER-FRAZER
largest
soon
practicable after Jan.
as
!
&
Engineering Corp.
1, 1946.
Common
■*'
a: ■>\.
■i':
*Recent pircular
.
'•
^
"
5
on
I-
request.
'
•
■
:17
J
'7 u
ADAMS & CO,
be
the
y
.
BONDS
the
231 South La Salle Street,
Chicago 4, Illinois
Teletype CG 361
Phone State 0101
Public j Utility
154)
Industrial HhM."
service
partnership in
'!
employees
on page
'
G.
been
directors/
con¬
tries
British
and
governor
Governors, arrangements
shall be made for the selection of
The
is
a
having
Board of
is hoped that the USSR will come
in later. What motivates the Rus¬
sian policy
jectured.
appoint
member
•
enterprising.
Exchange,
TRADING MARKETS
chapcej 6f
would
Pino
Lyman
active
the firm..
quota shall call the first meeting
of the Board of Governors.
:
(b) At the first meeting of the
disappointment in Washington. It
<
NEW YORK
Railroad
7 V
/MARKETS
;;7 v
-7 7
Central Public Utility Corp.
Lieut.
has resumed active
and economic "growth.
also serve as a n£gessai?y
necessary
54
Bioomingdale, U. S.N.R„has
*
as
Trading Markets
V *
that
announce
Cbgo. No. Sh. & Milw. R.R.
"
Company,
of the New York Stock
for
failure
,
&
-j
cushion,v> against
0
y
not
Russia's Failure
Disappointment.
a
Cowen
Street, New York City, members
in Section 3 of Article XX of the
Fund Agreement.
.
..
There seems to be a good chance
that the post of American
governor
in the Fund. and the^
Bank will be Secretary of
the tion 1 of this
Article, each mem.-
progress
of price
controls on profits and of profit
control on production, Prof. Har¬
per states that "the Government's
reconversion policies affect prof¬
its in
two
ways.
First, profits
are to be specifically controlled as
Regarding
.
recall
objectives
Profits
the
,
■
and .their
our
>
with
interferences
all
market
to
profits
Harper
to put
that
should
it
fluous
objec¬
special emphasis on
problems as effecting
reconversion. His general theme
is
re¬
eliminated.
or
policies
the control
free
conditions
those
| "Under any discussion of profit
appears
be
to
Under
profits will automatically be
profits
produc¬
but his
main
tive
rectly.
'of
control
above
by the' efficiency
of
labor, while at the same time re¬
tail price's are to be controlled by
the Government, there will be no
need for controlling profits
di¬
In
essay,
rise
to
are
American Governor of
Resumes at Cowen Go.
.
headquarters at
Ave., New York 17, N. Y. has recently issued the second
Park
to Be
Development is expected to be held in this
country in about
six weeks. Following that
meeting, the procedure will be as outlined
The National Industrial Conference Board, with
247
Meeting Awaited
and
Fatal to Increased Production.
as
131
Municipal
for the
Abitibi Power & Paper Co., Com.
MIDWEST
/
1952
Brown Company 5/59
Brailsford & Go.
208 S.
;
-'•••;
Tel.
State
Brown Company
Brown
La Salle Street
AJQALLYNANDCOMPANY
6% Cum. Pfd.
7
STRAUSS BROS.
Members
New
York
Security Dealers
Board of Trade
CHICAGO
Company, Common
Ass'n
Bldg., Chicago 4
•Telephone: Harrison 2075
CHICAGO 4
9868
Incorporated
tG 95
NEW YORK
Gaumont British Pictures "A"
BOSTON
MILWAUKEE
OMAHA
.
.77"/•
'
MINNEAPOLIS
KANSAS CITY
7
•!!
Teletype CG 129
Direct
Wire to New
York Office
Minn. & Ontario Paper, Com.
•
Greiss
Vicana Sugar Co. 6/55
WE
Fleger Com.
Republic Natural Gas Com.
ARE PLEASED
Vicana Sugar Co., Common
TO ANNOUNCE
THAT
JOHN J. O'BRIEN
HUGH T. KEARNS
7777: y/7./7777; 7.^77:7.7-aand 7/7
American Window Glass Com.
&C0.
RAYMOND C. WAUCHOP
Members
American Wine Co.
have been
v
.,
STRAUS & BLOSSER
Specialists
Members New
Members
York Stock Exchange
Chicago Stock Exchange
208
Tel. ANDover 5700
St., Chicago 3, 111.
S. La
Foreign
Salle
Randolph 4696
with
and
in
us
are
again
Armed
associated
Street
New
7
Doyle, O'Connor & Co.
.
'77. 7' 7.7
CG 451
Telephone:
Dearborn
6161
Teletype:
CG
CHICAGO SO. SHORE & SO. BEND RR. Com.
Central Paper Co., Com.
Northern Paper Mills Co.
Cons. Water Pwr. and Paper Co.
Froedtert Grain & Malt. Co.
Wisconsin Power and Light
Co.
-
New York
Philadelphia
105 So. La Salle
Street, Chicago 3
Pittsburgh
'
Members
,
CG
Chicago Stock Exchange
225 EAST MASON ST.
PHONES—Daly 5392
Minneapolis
OLLEY, DAYTON & GERNO
Member—Chicago
Incorporated
Teletype CG 273
All Wisconsin Issues
Hamilton Mfg. Co.
James Manufacturing Co.
Byllesby and Company
Salle
Gisholt Machine
National Tool Co."
Compo Shoe Mach. Co.
Telephone State 8711 /
Macfadden Publications
Standard Silica Co.
Nekoosa-Edwards Paper Co.
NORTHERN STATES POWER CO. 6 & 7 Pfds.
Street
CHICAGO 4
OF
Koehring Co.
GALVIN MFG. CORP. Common
S. La Salle
1200
CONTINUOUS INTEREST IN:
THE SECURITIES
Inc.
Chicago Stock Exchange
Chicago Board of Trade
Chicago 3, 111.
^
Curb (Associate)
York Coffee & Sugar Exch.,
231
Incorporated 7
135 So. La Salle St.
—We Maintain Active Markets In—
135 So. La
New York
-
Trading Department.
our
New York Stock Exchange
s.
Securities
Tele. CG 650-651
H. M.
the
i
Chicago 4,-Illinois
Associate Member New York Curb
185 South La Salle
in
Services
,
7
ZIPPIN & COMPANY
released from
Chicago j
MILWAUKEE (2), WIS.
State 0933
Teletype MI 488
Stock Exchange
St., Chicago 3, 111.
262
Central
0780
Offices in Wisconsin
Eau Claire
-
Fond du Lac
Madison
>
-
-
La Crosse
Wausau
*
.
Thursday, January 10, 1946
FINANCIAL CHRONICLE
THE COMMERCIAL &
132
Wilson & Anderson Are
Now With Lehman Bros.
Real Estate
Because of
the current
specializing in metals, have joined
Brothers/ 1 William
popularity of real estate securities, buyers
onwnnolintffe-
it<
m,„
j.!
of
announced.;
the banking firm
''
;
.
various
operation. The public is competing**
with this type of buying and may ticed, it would seem sounder to do
it with low price bonds that hav
for the next couple of years realize
large room for appreciation rather
a profit by so doing. However, if
than with bonds selling in the
these purchases are not liquidated
high 80s or 90s where the lever¬
and are held for investment for
age for appreciation is limited.
too long a term, we are afraid that
As
an
illustration
take
the
eventually the purchases will not
bonds Of
the Hotel St.. George.
be so successful.Speculation of
This
is
a
first. mortgage bond
this
sort
be alright for the
of years, but if prac-
may
next couple
is & Co.,
5, N. Y.
.amounts to 2%
the fund this
4^'s
,
Savoy Plaza 3-6's, '56
4's
24%
Bell
He
Teletype NY 1-953
TITLE COMPANY
the
erected by
ities
if
QUOTED
their
earned
interest
Government.
^ •<
oh
LAKE
SALT
UTAH
CITY,
LJ.G0LDWATER&C0!
they
fact
possibil¬ about
these bonds is not great price.
39 Broadway
to
go
par
there is only
Co.
&
in
to select a
1945
which the bonds are
interest
in" 1945.
and
169,000
for
placed
at
the
earned
was
The issue is $6,-
46%
a
value
of
property
is
$2,-
827,740 compared with an assessed
additional interest if earned
the 2% fixed rate.
They
in
market
current
at
value
of
$4,000,000 and an
inal cost of about
returning
which there
on
are
arrears
preferred
$67.50 and interesting re¬
cent
earnings range per share
after taxes—ask for analysis M. C.
5%
the
$100
Shoe;
American Win¬
Lamson
Sessions;
Airways;
Glass;
?:
Purolator Products. /: J/
and
State
148
analysis of 19 New
Stocks as of Dec. 31,
Bank
York
1945—Laird, Bissell & Meeds, 120
Broadway, New York 5, N. Y.
.
attractive dis¬
Rail¬
and Other Quotations issued
that
appear
by B. W. Pizzini & Co., 25 Broad
Street, New York 4, N. Y.
American Forging and Socket—
Circular—De
Young,
Tornga, Grand Rapids National
Bank Building/ Grand Rapids 2
/v,-.:/•-■/v/FV'/1'"Y-.W
Mich.
F
a r r e
11
-
Birmingham
Co.—
Analysis—W. J. Banigan & Co., 50
Broadway, New York 4, N. Yi:
Coal—Anal¬
County
Franklin
of condition and post-war
prospects—F. H, Roller & Co.,
Inc., Ill Broadway^ New York 6,
ysis
n.
y.
dum
Watch
Co.
Memoran¬
1529
Philadelphia 2, Pa.
available
Also
—
Brothers,
Buckley
—
Walnut Street,
is
memoran¬
a
and
Inc.,
Midland Utilities Co.
dum
Bowser,
on
particulars
and
garding
operations
Street
Wall
late
given
Commentator, house
of Bennett,; Spanier & Co.,
La Salle Street, Chi¬
organ
South
105
cago
'ri
3, 111.
Illinois Power Company —Sta¬
memorandum
tistical
&
Co:,' 60 Beaver
York 4, N. Y.
"
—
H.
Hentz
Street,
/
New
;;
;
-
Co.—Study of
Stove
Company—Descriptive
Kendall
231 South La Salle
Street, Chicago 4, 111.
circular—Seligman, Lubetkin &
Co., 41 Broad Street, New York 4,
New York.
Also detailed circulars on
ion Park, Shatterproof Glass,
Luitweiler &
Co., 52 Wall Street, New York 5,
ney
volume
N.
Broadway New St. 4/46
re¬
in the
American Service Co.—Circular
—Adams & Co.,
American
SPECIALISTS
on
Corporation-
Howard Aircraft
Review
interesting stock offering an in¬
vestment in the coming building
Wanted:
on
■
&
Larson
orig¬
$8,250,000.
Also ; available
a
report
Shelter Manufacturing Corp,;
Railroad Situations—Two situa¬
tions
Recent
—
26,.Mich. *;••>:/
Gruen
Stocks—Com¬
New York Bank
parison "and
Inc.
Electromaster
*
report — Mercier,- McDowell ■'&
Dolphyn,. Buhl .Building, Detroit
par
J\-^Rayn>ond & Co.,
road
Leverage possibilities are
than the St. George's
of the larger discount
1.54%
currently selling at 46%,
2.04%
1862
on
cussed in the current issue of
view
selling.
above
paid.
4.35%
from par at
if specu¬
bond like the
Broadway Barclay first mortgage
2% bonds due in
1956.
These
pay
N. Y.
Teletype NY 1-1203
Hano
much greater
in
points profit possibility.
bonds,
Members New York Security Dealers Assn.
with
Philadelphia in the past.
0.93
dow
stock of
—
Mackenzie has been
&
associated
American .7 Industries;
i Great Y
Alabama Mills, Inc.; Douglas
TACA
j New England Company —An¬
alysis of company established in
Theobald Mackenzie Opens
this point on, because even
lating,
Offerings
:
Period of
Street, Bpston 9, Mass.
1
Justified or not, the
It would seem better,
Information
New York 6,
the
Building to engage in the securi¬
ties business. Partners are Herbert
P.
Theobald
and
William
A.
Mackenzie.
Mr.
Theobald
was
13.
HAnover 2-8970
WPB' and
the
responsible for
of all of the
earning basis, however,
from
Complete Statistical
,
construction
aluminum and magnesium plants
Theobald
an
times.
CERTIFICATES
•
>
Program
was
of
.
remains that the leverage
SOLD
.Minerals for WPB.
formed with offices in the Kearns
only
-
Vice-Chairman for
was
for two years was
-
On
Co.—
.
an
Anderson
Mr.
;
ing their interest 2.60 times. How¬
ever, it might be wise to reflect
on the fact that in 1938, the bonds
BOUGHT
yyt>&
Insurance Stocks in a
Inflation—Study-^-Hare's Limited,
S. >W.' Anderson
today's price would seem justified
inasmuch as the bonds are earn¬
Dlgby 4-4950
Iron
.
Broadway,- New York 5, N; Y. Also
available are late memoranda on:
»
Vice-Chairman
1940 compared
in
today.
Members Now York Stock Exchange
Memberi New York Curb Exchange
40 EXCHANGE PL., N.Y.
recently
Metals and
reaching a km of
with 87%
price of 33%
SHASKAN & CO.
Malleable
Dayton
war—
Mr. Wilson, a
Siam.
in
1938,
the bond issue, each
-
Beacon
.1
past.November.). /
reorganization of
$1,000 5%%
bond was exchanged for $1,100 of
the present 4% bonds, so that the
current bonds are really selling at
the equivalent of 95%% based on
the old bond issue, even though
the interest rate has been reduced
by 1%%.
Ir\ 1938 after reorgan¬
ization, these bonds »old at a low
In
7th Ave. 4H's
(Park Central Hotel)
i
Govern¬
during the
;ji;;; ■'..
the
dis¬ | Philip D. Wilson
available in
.
4's'
and
Utilities
Gas
Corp.—Circulars—
Hicks & Price, 231 South La Salle
Street, Chicago 4. 111.
y/y
Chicago
Wood, Gundy: & Co.,.Inc., 14 Wall
Street, Now York 5,/N.Y.
fund
was
Primary Markets in:
870
$174,958 was
count. '
SECURITIES:
165 Broadway,
Consolidated
The
19 Hector
Street, New York 6,
mining;, engineer, N.
assistant to the
The ;• outstanding ; - bond
issue
! National Business and Economic
amounts to about $7,200,000 and President of Baker & Co., Inc., a
the bonds are currently selling at platinum and precious metals firm. Outlook : Encouraging — Observa¬
During a long career in metals, she tions by/Hubert J. Soher in the
; about 87 % placing a value for the
has played an active part in the current issue of the Investor pub¬
property of about $6,264,000. (The
lished by Walston,
Hoffman . &
Courts in a legal action for reduc¬ development of mining and metal
tion of taxes recently fixed a properties in the western United Goodwin, 265 Montgomery Street,
San Francisco 4, Calif.
/
value of only $5,855,167 for the States, in Africa, South America,
property.)
••" ;•
■:v: C > •
y"v: Mexico, ' Cuba,: Yugoslavia ' and
REAL ESTATE
Hotel St George,
and
Trade
Dominion
of
ment financing
greater
than ; 2 %.because
bonds have been selling at a
.
Portland
Study of outlook and speculative
possibilities for appreciation for
this company—Ward & Co.,; 120
summary
portion
a
—
experience and
trade
ternational
of the bond, issue
cancels
and
annually
developments
Canada's International
predicated a good deal upon
ownership
buying, for sinking
(Sinking,
circulars on
are
Cement, River¬
Cement, and Spokane Port¬
side
Position—Outline of Canada's in¬
was
purposes.
•
Stock Briefs
comparative price range figures—
Geyer & Co., Inc., 67 Wall Street;
New York 5, N.Y..;"
any share in the equity
property. The demand for
the bond in the last few years
.
Also available
Oregon
■■■■
Insurance
&
—Current
the
fund
•
* ''
land Cement.
Bank
>
without
of
companies—John H. Lew¬
14 Wall Street, New York
Boston
9,
■/ /;
Square,
Mass.
with late news on
industry
Office
Post
Aviation Bulletin—Study of air¬
line
—
1
-
11
interested parties the
to send
New York City, members
the New York Stock Exchange,
Street,
,
.
mentioned will be pleased
following literature:
It is understood that the firms
.
Lehman
the purchase of some securities which we do hot
believe are warranted.
,
;
Many real estate bonds are now, selling at prices predicated on
current-earnings rather than intrinsic values/ Some issues are also
selling at high prices because of ownership buying for sinking fund
:
Recommendations and Literature
,
taking risks in
are
Dealer-Broker Investment
Philip D. Wilson and Samuel W.
Anderson, formerly Vice-Chairmen of the War Production Board,
Y.
Bendix,
—
,
.
:'/v
,
man
Engineering
Fash¬
Well-
Co.; Walt Dis¬
Productions; Foundation Com¬
and
pany;
ware.,''
Segal
Lock
&
Hard¬
.
in
tfr-v
Industrial Office Bldg. 6/47
Bowser,
Real Estate Securities
Trinity Bldg. Corp. 3-5/49
Since
Inc.
—
& Co.,
New York City.
Goodbody
special study—
115 Broadway,
Chicago, Milwaukee, St. Paul &
Pacific
RR.
Co.—Circular—Ben¬
Luitweiler & Co., 52
Street, New York 5, N. Y.
dix,
Seligman, Lu bet kin & Co.
Le
Rol
Company
stock
as
a
—
Study
of
sound specu¬
purchase — First
Colony
Corporation, 70 Pine Street, New
York 5, N. Y.
-y/
lative
1929
Wall & Beaver St. 4*6/51
Westinghouse Bldg. 4/48
1
common
Wall
Also
ii
available
are
studies
of
Pittsburgh Railways, York Corru¬
gating, American Insulator.
incorporated
J; S. Strauss & Co.
155 Montgomery
...
.
St., Son Francisco 4
,Bell Teletype SP
61 & 62
.
41
Members
Prince & Lafayette Streets
'52—-New
York
Hotels* Inc.—Chicago
Devon
Detroit
Corp.
Roosevelt Hotel, Common
St.
Louis
Myles Standish Co. Boston
Valiquet & Co.
CG-81
Central 4402
•
.
-
Consolidated
HAnover 2-2100
Class
Cement
Corp.
on recent de¬
A—Bulletin
&
Co.,
10
P.
R.
Mallory
&
Co.,
Inc.—
analysis—Steiner, Rouse & Co., 25
Broad Street, New York 4, N. Y.
TRADING MARKETS IN
1958 W. S.
Gov. Clinton 2s 1952 W. S.
N. Y.
>
FOR
Majestic 4s 1956 W. S.
Roosevelt Hotel 5s
Broadway Barclay 2s 1956
1964
Roosevelt Hotel Common
WANTED
W. S.
Hotel Lexington Units
Savoy Plaza 3s 1956
Hotel Lexington Common
40 Wall St. 5s
Hotel St. George 4s 1950
165 Broadway
4^s 1958
Mayflower Hotel Corp. Stock
870 7th Ave. 4^4s 1957 W.
• :
POSITIONS WANTED
1966 W. S.
S.
OTHER CLASSIFIED ADS
Amott, Baker & Co.
SEE INSIDE BACK COVER
Incorporated
135 So. La Salle St.
CHICAGO
Dealers Association
York 4
velopments—Lerner
Beacon Hotel 4s
5s
York Security
-
Real Estate Securities
Lott
New
Broad Street, New
150 Broadway
Tel. BArclay 7-2360
New York 7, N. Y.
Teletype NY t-588
Volume
Realization
Mar-Tex
THE COMMERCIAL & FINANCIAL
CHRONICLE
Number 4454
163
tion—Memorandum
Corpora¬
inter¬
an
on
esting low-priced oil speculation—
B. S. Lichtenstein & Co., 99 Wall
Group Sees, Reports i
Group
12th
Merchants Distilling Corp.—re¬
analysis—Faroll
cent
South La Salle
&
Co.,
Street, Chicago 4,
Illinois.
I'M*?-
Also available is
.
208
analysis of
an
Standard Silica Corp.
Midland
Utilities
write
for
—
and
Midland
detailed
circular
study-
M-3—Fred
W.
Fairman &
Co., 208 South La Salle
Street, Chicago 4, 111.
Missouri
loo
Pacific
Bonds
Out-
—
v—McLaughlin, Baird & Tleuss,
Street, New York 5, N. Y.
1 Wall
annual
873,498
in
Company—
Descriptive
circular — Dayton
Haigney & Co., 75 Federal Street,
Boston 10, Mass.
'
New
•
England
Public
the
Nov. 30, 1945.
in
reports
to
r
now
In
company
trial Stock
in
the
was
by every
the 32%
Jones Railroad
8,126,770 to 13,number
Dis¬
it
was
exceeded
of the
one
18 stock classes of
Group Securi¬
ties, Inc.
The advance of
39.5%
in Railroad Stock Shares
also ex¬
increased during the
the
by
Inc.,
Average
year
ceeded
while
management
Group,
pointed out that the advance of
25.7% in the Dow Jones Indus¬
tained only the 11 months ended
Nov. 30, 1945. Despite the
shorter
period the number of shares out¬
was
accompanying report of
tributors
company's fiscal year, which for¬
merly ended on Dec. 31, the pe¬
riod covered by the
report con¬
072,416,
the
investment
in size among
mutual investment companies.
Due to the recent change in the
fiscal year from
se¬
holders amounted to
$5,881,221, of
Which $3,779,678
represented net
profit on the sale of securities.
.
The
ok
$18,162,104, compared with $5,722,671. on Dec. 31, 1944.
During the
year total distributions to stock¬
year ended
A further increase
year-end.
ranks third
more
held, representing the dif¬
ference between-cost and
closing
market prices, amounted to
nearly $5,000,000 occurred dur¬
ing the month of December, rais¬
ing net assets to over $87,500,000
the
to
appreciation
curities
its
that
$82j-
fiscal
61%
than 28,000.
of
standing
New England Lime
report,
Inc.,
net assets increased 103%
at
Realization
Securities,
rose
Unrealized
103% Rise in Assets
Street, New York 5, N. Y.
•
shareholders
1
of
rise in
Stock
the Dow
Average.;^
"The fears
regarding unemploy¬
ment which prevailed
prior to the
133
ending cf the war are being rap¬
idly dispelled," the report stated.
"Instead, it -is
the
feeling
becoming rec¬
ognized that during the next few
years what really is likely to ma¬
terialize is a labor shortage.
To
the
eliminate
strikes,
now
the
and
costly
than
mere
setting
of
rates.
continued
with
its
before
„■'
....
.
•
present
generally higher price level
develop, but the full force of
American-productive capacity and
any runaway
pointed
prob¬
out, is
that
announce
Gardner
a
report
U.
D.
N.
S.
Varick
A.
Commander
Stout,
and
R.,
S.
U.
Northern
"
Treat
having been released from active
general partners in the
as
Works—
possibilities
Rose
& Troster, 74
New
York
Public
-—
on
Hoit,
Trinity Place,
6, N. Y.
National
Bank
&
Trust
Co.--Analysis, for dealers only—
C.
E.
Unterberg & Co., 61 Broad¬
way, New York 6, N. Y.
. y,
JAlso for dealers only are anal¬
yses of National Radiator Co. and
.
Republic Pictures.
Railways & Light Securities Co.
—Descriptive
memorandum
on
oldest leverage investment com¬
in
pany
the
United
States—Du
Pont, Homsey Co.,'Shawmut Bank
Building, Boston 9, Mass.
Schenley Distillers Corporatioi
—Brochure
of articles they havi
running in the Chronicle-
been
write
Mark
to
Merii,
Schenley
Distillers
350
Avenue,
Fifth
n. y.
in care o*
Corporation
New York 3
■
Sport
Products,
circular
Inc.—Detailed
>'i' £
^
Hardy & Hardy, 11
Broadway, New York 4, N. Y.
\-;U.
S.
r
The
Sugar—Circular
J.- F.
Reilly & Co., 40 Exchange Place,
—
ONE of the South's greatest industries is coal
mining. From Kentucky, Alabama and Ten-
New York 5, N. Y.
Also
dum
available
on
Great
u
is
a
memoran¬
American
Indus¬
y
nessee
come
some
of
the
finest coals
pro¬
duced in America.
*• "
tries.
Company's
"Washed
supplied
fuel
Outstanding
Co.—cir¬
cular—Simons, Linburn
Broad
& Co., 25
New York 4, N. Y.
Street,
Fansteel
this
among
group
of producers is the
all
was
but
shares
tucky,
some
far back
Metallurgical
the
announced
128
shares
common
Fansteel
Dec.
of
stock
28
the
as
of whose holdings
1870 and whose total
acquired
that
ration
group
upon
with
to
by
6,000
the
plants
United
Corp.
Coal
reserves
now
shares
pletely
purchased
were
and
to Canada and
do¬
mar¬
other foreign coun¬
Company
war
period, the West Kentucky
operated
lost
on
of labor
account
its
mines
without
difficulties,
a
most
modern
All
under-ground
machines
using
and
mines
West
in the
mobile,
rubber
belt
are
day
,
Kentucky
Coal
approximately three
Company's
and
one-half
production
million
was
tons
in
1945 and upon the completion of mines and
washers
com¬
rubber-tire-,
now
transportation
throughout.
a
unique and
under
creased
i\7
to
construction,
over
its
capacity
will be
in¬
four and one-half million tons
an¬
nually of washed coal alone.
sub¬
underwriting
Another
subscription
stockholders,
the
among
mechanized,
headed by Hallgarten & Co.
the exercise of
warrants
famous
premium
ex¬
Coal Company's mines and prepa¬
are
States.
niounted
shares,
together
as
its
industrial
enviable record.
West Kentucky
shareholders of the
company were subscribed for on
the subscription
rights which ex¬
pired on Dec. 26. These 128
scribed
well
of
is
low-cost
,
as
(no par) of
offered to the
as
tries.
thousands
a
in the midwest and southern
consumers
During the entire
were
ceed 260 million tons of coal.
52,000
Metallurgical
to
product
Seam" coal,
West Kentucky Coal Company of Earlington, Ken¬
Stock Offered at $83V2
It
11
mestic
kets
Wellman Engineering
principal
No.
from
advertisement
in
the
series
by
Equitable
Securities
Corporation
Equitable has helped to finance many Southern
featy.ring Southern developments.
certain
companies,
is
ready
to
do
its
part
in
supplying
others
with
capital
funds.
offered public¬
ly Dec. 28 by the
underwriters at
$83.50 per share.
NASHVILLE
Robert A. Harker Forms
Own Investment Business
LOS
ert
at
A.
210
ANGELES, CALIF.—Rob¬
Harker has opened
West
Seventh
A T
L)A
\K HyO
N
MEMPHIS
XVILLE^
H A R T
F O R D
BIRMINGHAM
GREENSBORO
NEW
ORLEANS
CHATTANOOGA
to
engage in an investment
business
under the name of
Harker & Co.
He was
formerly with
Barbour,
Smith & Co. for
many years.
YORK
T A
offices
Streeth
NEW
r%
BROWNLEE
312 UNION
STREET, NASHVILLE 3, TENN.
O.
CURREY, president"
TWO WALL
K.;
Dom¬
service, have resumed their
&
Panama Coca Cola—Circular
Stout,
N.
Bayard
Co., 40
Street, New York 5, N. Y.
interesting
i<
II, Lieutenant U. S. N. R.,
inick
Service
Engineering
Circular—Amos
Wall
""
Commander
Co.—Analysis—Ira Haupt & Co.,
Ill
Broadway, New York 6, N. Y.
K
111
Dominick & Dominick, 14 Wall
Street, New York City, members
Exchange,
that
current
"
of the New York Stock
Jr.,
Overshadowing
•n
..
Partners Resume Duties
powers beyond the middle
of the year.
There is little doubt
ability will prevent
price inflation."
the
at Dominick & Dominick
:
pricing
the
satisfied
rehabilitation of
the world is completed.
likely to be
satisfactory levels, for it is
highly doubtful that the OPA will
lems,
demands of
are
as
"Profit margins are
will
deferred
five years
past
and
at
be
tremendous
of
the
wage
the
on
peak business activity before the
expense
as
satisfactory labor condi¬
tions, industry must find an ap¬
proach
to
labor
compensation
other
certainty
develop sound
to
well
hourly
of
part of industry and consumers
that it will take many years of
STREET, NEW YORK 5, N. Y.
place^j
firm.
•
Thursday, January 10, 1946
COMMERCIAL & FINANCIAL CHRONICLE
THE
134
"
■
to The Financial
(Special
Broker-Dealer
Personnel Items
to The Financial
Chronicle)
HILLS,
BEVERLY
Inc.,
He
ing service in the
Boulevard.
past with White,
Wilshire
9494
was
become
Securities,
Atlas
with
connected
hag
Larsen
J.
Willard
CALIF.—
4
the
in
(Special
Wyeth & Co.
(Special
CLEVELAND,
to
The
has
of A., E. Aub
■
:
•
Co.,
*
:
\ ~
Chronicle)
Edgar
—
E.
to
Securities. '' vaK'
••-•'vr
;•
v? lewis iianey
; ■
■,
:
Professor of- Economics, New "York University
'
Chronicle)
(Special to The Financial
mists That There Would Be as Much as
'.M
•
(Special
Chronicle)
to The Financial
MICH. —Jack
Building.:,
been
serving
Navy.
S.
is the failure of the forecasts made by the enemies of free enter¬
prise. A month<S>
o r
two ago system still prevails, and no ef¬
they were all fective third, fourth or other party
.
Ri
Chronicle)
MICH.—Frank
DETROIT,;
City
unemployed
& Co.,
All those who
munism, that seems now to have
so
identified with Russia
do not believe
X.
become
in
a;
shown some
independence of labor. "Labor" is
itself badly divided. As to Com¬
Spring."
by
President has
The
"eight million
that
com¬
our
ment
j
b
0
American
average
re¬
sort of "foreign sub¬
a
as
stance" in the body politic.
probability
seen
by
remains; namely,
the
So
want Govern¬
Penobscot Building,
the
gards it
petitive price
system or who
Faulkner
Burger is with Stoetzer,
exists.
chanting
Penob¬
AAaA..'':
(Special to The Financial
^
?
good reason for hoping that this new year will be a happy
A very
He has recently
in the Canadian
•..
.
v
;Vl Is Like Trying to Stop the Sap From Rising in the Spring.
associated
become,
with A. M. Kidder & Co.,
scot
:
and Concludes That to Attempt Government Control Now
A Prices
one,
DETROIT,
Anstey
has
^
Day Have Not Materialized, Cites the Failure of These
"Seers" as Illustrating That Government Planning Is Futile. Notes
Situations Which Point Toward Expanding Industry With Rising
After V-J
/v
O. —James G.
Harry has rejoined the staff of
Paine, Webber, Jackson & Curtis,
CLEVELAND,
Noting That the Predictions of Government Econo¬
Eight Million Unemployed
Dr. Haney, in
'
Cleveland Cor¬
in the armed forces.
;•
Union Commerce Building.
Gallagher has been in the
armed
service;
Mr.
Eschleman
was
with .the Ohio Division of
the
added
Bank
He has recently been
Building.
Co., Union Trust
&
Building.
O.
National
poration,
joined the staff
'
.
been
staff of The First
II.
O.—Joseph
CINCINNATI,
Lichtenstein
has.
LeGros
Chronicle)
Financial
&
'
•
Mr.
the
to
Cook
to The Financial
(Special
Building.
(Special
added
been
Lawrence
Doomsday Seers Fail
Co.,
O.—Clement J.
Fidelity Building.
Johnson
Inc.,
Co.,
Investment
of
staff
Southern
with
is
Fitzgerald
has
Kissling
;
O. —Frank
A.
Gallagher and William J. Eschleman are with Hawley, Shepard &
CLEVELAND,
Union Commerce Building.
Chronicle)
.
C.~Thomas
N.
CHARLOTTE,
L.
Chronicle)
Financial
armed forces,; ;
to The Financial
CLEVELANI),
to The
Chronicle)
CINCINNATI, O.—Bernard J.
Barlage,
Jr.,
has rejoined The
Weil, Roth & Irving Co., Dixie
Terminal Building, after complet¬
: ,
(Special1 to The; Financial Chronicle)*
Chronicle)
CINCINNATI,
(Special
(Special to .The Financial
,
O. — Jack
L.
Reiter has rejoined the staff of
C. II. Reiter
Co., Union Trust
Building, after serving for five
years in the U. S. Army.
; 1
1
-
sound observers
s as
industry and employ¬
expanding
bureaucrats,
ment, with rising prices.
To attempt "government con¬
try into a re¬ trol" - hqw is like trying to stop
cession. If they the sap from rising next Spring.
had been right,
ganged
up
to
v
scare
announcement
This
construed
appears
as
a
matter of record ;only
and • is under no circumstances to be v.
solicitation of an offer to .* h •
securities for sale or as a
offering of these
an
The offering is made only by
•'*buy any of such securities.
y'
,
as
the Prospectus.
1
'
<■
■
•
prohibited.
ingly,
the
"forecasters^ changed their tune.
spmmed
SEC Official at
$17.50
per
Share
t
will
"not
approximate
even
8,000,000 figure that is
quently quoted."
;
this
he
matter,
the
main
the
According to
argument for deflation
the absence of
tain
serious decline in total con¬
any
sumer.
income.
■
y-yyyyyy ./'x-
.
.new' issue'
$
■'? ■': '
'
r
_
f
a ,'.1;,,.
,
•
' -
\ r.
of these securities.
- -
mi
0.* >\ f
.-v! •
k.I,
a bunch
of bureaucrats
month forecast recession
and unemployment, and the next
announce that their forecasts will
•v*.'
who
McCrory Stores Corporation
3^4% Cumulative Convertible
I
been
in
Smith
things
some
has
negligent, even grossly
,
of
ment
.•
that
so,"
occurred,"
but, he pointed out, that since the
r
#
; *
#
*
theory is to protect the public,
"it should be ample protection if
Aside from the note of} good
cheer which this change in fore¬ you
allow him
to
deal with
casts strikes,
the most notable brokers and wholesalers and not
conclusion
is V; that
government with the public at large., Even if
planning is futile. What confi¬ he is guilty of any criminal ac¬
dence can we have in the judg¬
tivity in his operations there
„
-
■
60,000 Shares
a'
.
any
'
buy
to purchase various
excess
at prices far in
prevailing market prices" frond
January, 1938, to December, 1942.
The counsel for Smith told the
Commission "there is no denial
payments. It has been less drastic
than
anticipated.- Furthermore,
most of the shrinkage has already
;
v.•..., 7.,,.^.v,yv AU■
..*
: ■.-v.
This announcement is neither an offer to sell nor a solicitation-of offers to
The Offering is made only by the Prospectus.
Associated Press
of
crease
v
persons
securities
;
Says he: "There has been a de¬
in total wage and salary
1946
an
dispatch, the SEC staff had re¬
ported that investigation tended
to show that Smith "induced cer¬
that
says
that the
Counsel, requested
application
be
denied on
the
ground that it is doubtful that he
is a fit subject to be registered.
has vanished with
Kuhn, Loebf& Co.
January 7,
SEC
:*
today." And to
serious problem
clinch
*
a
County
for
registration
as
a
broker-dealer,
Gerard
O'Brien,
the
still fre¬
goes on to state
comparatively few
in which unemployment is
centers
a
Philadelphia Hear*
hearing on Jan. 8, in Phila¬
delphia, regarding the application
of Alexander Smith
of Chester
At
that "there are
only such dealers participating in
securities laws of such Stated
.
tered.
Hinrichs
Mr.
Prospectus may be obtained in any State from
issue as may legally offer these securities under the
Copies of the
part strictly
have Chester
County, Pa., Is Not Likely
to Be a Fit Subject to Be Regis*
31, 1945, says it is almost: certain
that unemployment in the Spring
:
in
.,
ing States That Alexander Smith,
acting .Commissioner
of Labor
Statistics, who, under date of Dec.
Offering Price
'
Objects to a Dealer
Registration
F. Hinrichs,
by A.
up
whole or
"
1
beautifully
is
situation
The
Syndicate.'
by King Features
in
Reproduction
be
find strikes for high
wages the only barrier to a boom,
and
many
industries suffering
from labor shortages. And accord¬
J-
t
Distributed
veter¬
would
we
ever,
Common Stock
,
coun¬
selling apples on all the corners,
and free private enterprise would
be receiving a terrific beating. ]
> At the turn of the year, how¬
Union Asbestos & Rubber Company
$5 Par Value
now
ans
||
217,384 Shares
by
Haney
H.
Lewis
the
one
would
be
opportunity to de¬
no
public if he is now
lowed to deal with it.":
fraud
the
al¬
Ay-
Mr, Smith was registered as a
1936,
not be "even approximated"?
And I wonder if they think the to March, 1943, when he withdrew
his registration.
He made appli¬
average American is so dumb that
cation
again for registration in
he will not draw this conclusion.
f
"V
Do
they think that, when "the May, 1945.
Government" can do no better in
the way of forecasting unemploy¬
broker-dealer from January,
?
Preferred Stock
.
j
-
;
.-. u.;;
c.' A
(#100 Par Value)
_A*
(Each share convertible into 2x/i shares of Common
Stock)
A*A;:.".'.""A
ment, we will ever
responsibility
the
of 3l/2% Cumulative Convertible Preferred Stock 54,593
the subscription price of $104 per share by the Common Stockholders of
Of the above mentioned 60,000 Shares
shares
were
subscribed for
at
,
"full
j
employment"?
;;
*
■
the Corporation, or their assigns. The 5,407 unsubscribed shares are to be purchased from the
Corporation by the Several Underwriters, subject to the terms of the Underwriting Agreement sum¬
marized in the Prospectus.
■
■
V
:
entrust it with
for providing
.-•*
*
.'
•
* ;'
A/,'
Chapin, Smith & Go. Is
Formed in Detroit
DETROIT, MICH.—Chapin,
& Co., has been formed
with
offices
in
the Penobscot
that if the
prophets of gloom were wrong the
first time
they may be wrong
again, and that their present en¬
legally
>
States.
ties business.
couraging announcements will not
come
true. Is the outlook really
,
Copies of the Prospectus may be obtained from such of the undersigned as may
offer these securities in compliance with the securities laws of the respective
Smith
Chapin,
But some may argue
' :
•
better?
One
strike
possibility is
may
precipitate
tie
a
up
that a steel
industry and
depression.
But
Merrill
Lynch, Pierce, Fenner 8l Beane
Kidder, Peabody & Co.
or
firm my
nation
impression.)
possibility is such a de¬
politics that the
might suffer a similar
terioration in our
■ - -
France. On
score, I am sure that the time
not yet come. The two-party
paralysis to that of
this
has
E.
Meeks in New Location;
Charles Crain Joins
MEMPHIS,
Another
Goldman, Sachs & Co.
January 10,1946.
Edward C. Smith and
Jackson. Mr. Chapin
was previously a general partner
in Carr,-Chapin & Co. with which
Mr. Smith was also associated.
George
I
that anybody wants
that it will; be allowed.
(The stock market seems to con¬
don'f think
this,
Building to engage in the securi¬
Partners are Roy F.
TENN.
—
Meeks & Co. announce
ing of new offices at
Building.
Charles C. Crane
-
j
Staff
Gordon
the open¬
2111 Sterick
•
'
is
now
lively associated with the firm.
ac-
[Volume 163
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4454
135
New Yorb Curb Has
Predicts
Renominated Posner
NSTA Notes
ner
Posner, Andrews, Pos¬
Rothschild, has been re¬
&
nominated
as
to
Maurice Holland, Founder of
Industrial Research Institute and an
Advisor of Research, Points Out as
Basic Problems to Research
Executives: (1) National
Legislation as It May Effect Company
Policies in Research and
Patents; (2) Trained Research Manpower
another term
serve
chairman of the board of
gov¬
of the New York Curb Ex¬
ernors
change. Election will be held
Feb.
!
Thirty-four members of the National Security Traders Associa¬
tion attended the informal
meeting in Chicago, on November 29, at
which
were
in attendance the members of the Executive Council and
representatives
from
most
affiliates.
considered:";-'
following
matters
were
i-
"
.1;
The
Discussion of relationship of N.-S. T. A. with N. A. S. D.
Report of Constitutional Revision Committee—Henry Arnold,
2.
Chairman.
'
3.
Veterans'
•
>
•
"
,
,
Committee Report—Victor Mosley reported for Paul
Moreland, Chairman.
Report of Year Book Committee—Harold Smith, Chairman.
Report of Special Executive Committee:
^
;
Re: Meeting with Interstate and
Foreign Commerce Com¬
4.
5.
■
,
mittee
re
Boren Bill.
A""
•
Re:
Meeting with entire Commission, S. E. C. and Treanor
'■
with Dotts,
Mosley and Graham. '
Report and discussion of Publicity
Committee, Mrs. Ora Ferguson, Chairman. A booklet for distribution re
trading and
"over-the-counter" business, with history and aims Of N. S.
T. A. to be prepared for general distribution.'
Report of Parsons, Yarrow, Welch and
Graham,'re meeting
with National Association of Securities Commissioners.
/.
»
6.
'
•
;
f <.
,
' '
7.
\
1
y
)
■
The Executive Council meeting, held afterwards, voted to hold
Convention in Seattle in
September, 1946, Edward Welch was
next
appointed Chairman of Convention Committee.
The next meeting of the National
Committee of the N. S. T, A.
will be held in
Chicago, Jan. 30, 1946. All Presidents of
Affiliates,
Past Presidents, and Chairmen and
Vice-Chairmen of all Commit¬
tees are invited. It is hoped the
membership will discuss any sugges¬
tions to make the organization function
better, in the interests of the
"over-the-counter" business, with their
National Committeemen and
President of the local affiliate before this
meeting.
\
•
.
Victor
Mosley, Stroud & Company, Philadelphia
9, Pa. has
Corporate Committee of the National
Security Traders Association.
*
Baird
and
1
t
Charles
Shortage; and (3) Research
J.
Kershaw
were
renominated
as
Class A governors for three year
Public
Relations.
Industrial Field.
terms; Edward A. O'Brien, Charles
W. Phelps, Jr. and Victor Verace
other
were
James A.
'
ernor;
Class
Dyer
A
as
New
gov¬
Moran, Harold C. Pat¬
William
Charles
E.
T.
Warner
,
for
' Veit
three-year
trial
and
Mr.
terms
were
tees of the
renominated
gratuity fund to
three ■ years.
serve
search
;
-
t h
tions
Co.
regular:, meeting
of
of Directors of J. P.
Board
Mor¬
>
Company,
of
the
and
were
and
pure
Mr.
board.
in
Maurice Holland
Year
found
field,
fundamental
research
was
are:
Richard
Abbe, New York, N. Y.; John Hecht, Butler-Huff
& Co., Los
Angeles, Cal.; H. L. McAllister, T. S.
Dickson & Co.,
Charlotte, N. C.; Paul YarroWy
Clement, Curtis & Company-Chicago, lib
Other members of the Committee
are: William
O. Alden, O'Neal &
Alden, Louisville, Ky.; Ed¬
ward T. Bennett,
Jr., M. A.vManley & Co., De¬
troit^ Mich.;" Ernie Blum, Brush, Slocumb &
Co.,
San Francisco,
Cal.; Arthur W. Brotsch, G. A.
Saxton & Co., Inc., New
York, N. Y.; Merrill M.
Cohen, J. M. Dain & Co.,
Minneapolis, Minn.;
Robert Diehl, Staats &
Co., Los Angeles, Cal.;
Howard J. Eble, W. J. Mericka &
Co., Cleveland,
Ohio; Dayton Haigney, Dayton
Haigney & Co.;
Boston, Mass.; Clair S. Hall, Clair S. Hall &
Co.,
Cincinnati, Ohio; Bert H. Horning, Stifel, Nicoiaus Co., St. Louis,
Mo.; Peter Kosterman, Conrad
Bruce & Co.,
Portland, Ore.; Neil McKnight,'Mil¬
iums, Martin & McKnight,
Atlanta, Ga.; George
R. V. Mosley
Mueller, Janney & Company,
Philadelphia, Pa.;
r
- '-Frank
J. Murray, Day, Stoddard & Williams,
New Haven,
Conn.; Charles Pinkerton,
Baker, Watts & Co., BaltiRobinson, Baum, Bernheimer Co., Kansas
City,
oui- if5
Scanlon, Earl M. Scanlon & Co., Denver, Colo.; Hugh
Schlichtmg, Wm. P. Harper & Co.
Seattle, Wash.; Donald Stephens,
First Securities Co. of
Chicago, Chicago, 111.; Robert Woolfolk, Woolfolk, Huggms & Shober, New
Orleans, La.
'
|
or
merely
a way of life—<
high salaries.
Covering other industrial prob¬
lems in his year's end review, Mr.
;
Holland
Cost Accountants
prepared for the Collier
of the National En¬
-.7?
new industrial re¬
laboratories will be built,
according to Mr. Holland's survey,
,
search
The
Brooklyn
Chapter
National Association
countants had
Jan.
as
of
the
of
Cost Ac¬
as
its guest speaker
and
Which
<
Kassander
is
•
a
"(1) National
legislation
years
now, and for at least five
after the
war.
^"(3) Research in relation
construction conditions
broad
of
program
public
Mrs
Ora
Ky.
V
Ferguson, Merrill Lynch,
has
Mr.
Holland
is
adviser
been
elected
chairman of the
mittee of the National
Security Traders Association.
Other members
are:
'
,
Atlanta Bond Club:
Wayne W. Martin, Milhous,
Martin &
McKnight, Inc.
Baltimore Security
Traders Association: Ed¬
ward J.
Armstrong, Stein Bros. & Boyce. ' :
'
Boston Securities
Traders Association: G Carl¬
ton Jordan, R. W.
Pressprich & Co
Chicago Bond Traders Club:
Harold Barclay,
Caswell
Midwest
Foundation^
Research
Foundation;'
a
In
reviewing
will
increase,
.7"7.
the
migration
trend from East to West, Mr. Hol¬
land said: "There seemes to be a
with
Lybrand, Ross Bros. & Mont¬
gomery for a number of years.
migration:*
of
•...
trained
and
various manufacturers. He is?
of the Industrial Re¬
founder
search
Institute,
and
for
search
=1
This announcement appears merely as a matter of record, and is
-
"
construed
1
■
"
as
un'der no circumstances to be
offering of these securities for sale, or as a solicitation oi
an offer to buy any of such securities.
!' ;
'
'
an
*"|,v;
"
v-
„
NEW ISSUE
52,000 Shares
Co.
•
Cincinnati Stock
&
Bond Club:
i
Cleveland
Security
S
Lynch,
Common Stock
(Without Par Value)
}
—c-i
Of the above mentioned
scribed
Pierce,
A
Fenner
for at
corporation
or
52,000 shares of common stock 51,872 shares were sub¬
subscription price of $61 per share by. the stockholders of the
their assigns upon exercise of subscription warrants which expired on
the
December 26, 1945. The balance of 128 shares, together with 6,000 shares subscribed
to
by the underwriters
certain
Hall
Security Traders Association:
Merrill
Beane.
!
Clair
Metallurgical Corporation
Com¬
•
Jr., Clair S. Hall & Co.
DeGarmo,
Fan steel
Beane,
•,
t.,
upon exercise of subscription warrants purchased by them from
stockholders, have been purchased from the corporation by the underwriters.
E
•
&
Traders
Association of -Connecticut:
Leslie B. Swan, Chas.
W. Scranton & Co.
Dallas Bond Club: John L.
Hallgarten & Co,
Canavan, Rauscher,
_
Pierce & Co.
>
Bond Club of
Sudler & Co.
faenver: Phillip
Security Traders Association
Michigan: Harold R.
Chapel,
& Co.
J. Clark, Amos
of
Detroit
Blyth&CoMInc.
Mellon Securities Corporatipn
and
McDonald-Moore
Ora M. Ferguson
Clark, Dodge & Co-
,
'Florida
Security Dealers Association: H.
George Carrison, Clyde
C. Pierce Corp.
Bond
Club of Houston:
Bond Traders Club
Price & Co.
of
Ed
Rotan, Rotan, Mosle & Moreland.
City, Mo.: Earl W. Price, E. W.
Kansas
Security Traders Association of
Los Angeles: Donald
jnerell, Wagenseller & Durst, Inc.
Bond Club of
E.
(Continued
on
page
153)
Central
;.v
■
Republic Company
'
,
Paul H. Davis & Co,
(Incorporated)
Paine, Webber, Jackson & Curtis
Sum-
Louisville, Ky.: Russell Ebinger, Smart &
Wagner
many
director of the National ReCouncil, Division of Engiresearch1 neering and Industrial Research.
years,
\
■-*
thq
Research
•
..
&
Publicity
to
Armour
Public Accountant of the State of
-
January 4, 1946
£
now
prevails and
Mr. Holland stated.
Certified
New York and has been associated
\
Fennerf&
Pierce,
to
rela¬
tions."
,
Louisville,
re¬
"(2) Trained research manpower
shortage
„
NATIONAL SECURITY
TRADERS ASSOCIATION
PUBLICITY COMMITTEE
•
m
it
as
affect company policies in
search and patents.
may
high grade and specially
trained research men and women
Standard
Costs Are Applicable and Why."
Mr.
execu¬
primary problems at the front
need for
1946, Arno R. Kassander,
Certified Public Accountant, who
spoke on the subject, "Types of
to
as
"Research
of their minds.
permit, and hundreds of existing
research laboratories will be ex¬
panded or remodelled. A pressing
9,
Industries
soon
said:
tives in industry have three basic
an¬
Book
cyclopedia.
i More than 70
.
Abbe, Van Tuyl &
Mr.
being
.
Co-Chairmen
-
trained
interested in
than
.
search,
Kassander Addresses
.
»■
more
thriv-.
nounced by Mr. Holland in hiS an¬
nual
year's end survey
of re¬
,
sons
science at
Iowa, Illinois, Pur¬
Missouri, Kansas, Indiana,
Wisconsin, Nebraska and Minne¬
sota, are going home. They are
neglected and not supported.
The "above
trends
were
elected
'
due,
e
science
hence, opportunities.
hbs reversed. Native
the. industrial
Holland
and
the Indus¬
are apparently
surface indications that the trend
sec¬
th
to
| "Lately,»there
Mid,
of
nology
ing in
& Co. Incorporated, 23 Wall
Street, New York City, John L.
Collyer, President of the B. F.
gan
Goodrich
'
in¬
United States.;
With tech¬
the
universities
came
10 and 20 years
ago had the greatest concentration
of industrial research laboratories
South and Far
Western
Morgan &
colleges then
East
e
Midwestern
trial East, which
re¬
the
to
and no doubt Battelle,
their early scientific training
got
women
of Midwest Re¬
Institute, Armour Research
Foundation;
in
men
dustrial
Elected to Board of
Many of the staff
mi-
gration of
7'vs'-.'-Vv'
::
search
now
a
Neglected in
workers to the Middle West from
the Eastern seaboard laboratories.
indi¬
and
a
<$>—
reported
cations
indicate
trus¬
Broad Program of
shortage in industry of trained research
by Maurice Holland,'research
York.
surface
a
Research
predicted
of
from
At
is
Science"
booming,
Holland
also
as
4-'
v
| George Herrel and Clarence L.
I P.
manpower
workers
in Relation to
"Pure
technol¬
ogy
nomi¬
were
governors.
Eckstein
and
adviser
a
Sees
W i th" indus¬
i Charles
B
five-year
managers
,.
terson,
nated
for
Class A
a
A
nominees.
named
was
term
one-year
members
been chosen Chairman of the
on
11.
Andrew
Ralph W. Gallagher
NATIONAL SECURITY TRADERS
ASSOCIATION
CORPORATE COMMITTEE 1945-1946
R.
•t
Class
••
•
■
Shortage of
Industrial Research Workers
Edward
1
THE COMMERCIAL
136
with
pares
than
& FINANCIAL
30%
reductions
for
& Western and
wanna
of
Delaware,
more
.
than
4u% for Missouri-Kansas-Texas to
cite two of the poorest credits
confronting railroad analysts is trying to
One of the difficulties
justification there could be for speculative activity in, and
enthusiasm for, the common stock of Lehigh Valley. From an oper¬
ating standpoint there is much to be said for Lehigh Valley but when
you have granted that you have said just about all there is on the
favorable side of the picture.
The road is heavily dependent on
anthracite coal tonnage with all
of
the unfavorable implications the long term downtrend in that
what
see
commodity carries. Over
of
less
been
Direct Private Wires to:
number
of
as
whole and in
a
the
inferior to that
pre-war
was
years
in
veloped
the
war
be calculated
that
years
to
cause
any
receivership
the
is
trusteeship in
or
1930s., That
structure
far
the
too
debt
road's
heavy
seems
obvious from the fact that in three
of the six years preceding
present
charges
would
1941 the
have
not
covered and in the best year
of that period (1936) the coverage
would have amounted to only
times.
.
*
birmingham
tably successful in adjusting
op¬
erations to the lower traffic base.
>;• t
In two
1942
and
$5
boom
war
1943,
than
more
the
the
substantial
report
the
of
for
share shown
a
in each year.
common
In 1944,
with results distorted by a charge
lor penalties on New Jersey taxes,
earnings oil the
common
dipped to
eration of amortization of defense
projects, etc., do not account fully
with the traffic and
Listed and Unlisted
tion in gross revenues for a num¬
tentialities in
7;7y7:'"Securities 7'7/':7
was pecu¬
earnings
stimulated
by war activity
began to pile up the road
and cash
was
the road
po¬
economy.
unfortunate.v As
liarly
were
~
with markets in these cities
earnings
normal
a
In this respect
forced to utilize the funds for
retirement of bank and RFC loans
and for
payment of postponed in¬
the
junior mortgage
terest
on
bonds.
Then
adverse
court
deci¬
sions necessitated substantial cash
MEMBERS
•
.
payments
New York Stock Exchange and other
leading Security and Commodity Exchs.
120
Broadway, New York5,N.Y*
So.
231
LaSalle St.,
Chicago 4, III.
count
of
New Jersey
to
back
taxes
"
Magazine Repeating Razor Co*
Universal Match Corp*
a
Berkshire Fine Spinning pfd. •
Missouri Pac. RR. Serial 5*4$
Tappan Stove Co.
Skilsaw, Inc.
interest
on
the basis of
this condition
was
continued right
substantial bond
1949-1951, it is gen¬
erally conceded that Lehigh Val¬
by
aggregated
maturities in
ley will almost inevitably even¬
tually have to undergo some form
of
capital
revision.
Presumably
this will be in the nature of
untary
plan .such
vol¬
a
that of the
as
obligations had to be met at their
tion 77 proceeding so
cull face amount while other roads
the equity would not be wiped out.
On the other hand, there is little
burdened
with
were
the
too
heavy debt
taking advantage
boom
to-purchase at
-ubstantial discounts; and retire,
bonds outstanding with the public.
7; As a result, Lehigh Valley in
the period since 1935 has been
war
oble to reduce its fixed
charges by
dightly less than 8%. This com¬
question
but
that
a
Sec¬
that at least
any
voluntary
olan formulated would haye to in¬
clude
provision for utilization of
excess
earnings for debt; retire¬
ment with a consequent restric¬
tion
on
dividends until the debt is
reduced to
If
we
a
reasonable level.
were
entering
the
YORK
'
| Let
'
war
RAILROAD
all
Broadway
economists continue
significance to
gold that it had in, say, 1930. As
everyone knows, the power of the
:
; First, these
impute the same
to
monetary authorities to influence
limited so
long as our currency and credit
were
rigidly tied to gold.
But,
this condition no longer exists!
In most countries there is no di¬
rect
relationship
between
the
the money market was
Telephone—Dlgby 4-4933
:
/
behavoristic
in¬
to
mech¬
prin¬
prices had to go up at that time,
gold
the theorists said, because the
content of the dollar was lowered;
but it didn't work out "according
plan:"
to
is:
a
flexible
reduced
have
one.
our
There are many, many
on
prices which are
important than quantity.'
influences
more
powerful of
"psychology."
this connection, in passing, it
interesting to note that the
One
the
of
most
tie-
economist who seems to have the
greatest fear of the present quan¬
tity of bank credit, made his repu¬
gold
required
ratio, i.e., the ratio of
gold Jo notes and deposits of the
Reserve banks, from 40% to 25%
so that $25 of gold will now sup¬
certificate
port $100 of member bank reserve
balances at the Federal Reserve
tation
30
some
theory of money and all it stands
.7"/ 7:77
:'-:7'. 7-'
7
Other
than
the
self-seeking
utterances
of
.
$1,000 of commercial bank credit,
depending on the reserve require¬
ments in, force.
The amount of
credit which our 20 billion dollars
from
of
good
fthis $100 of
gold-will legally and. comfort¬
ably support on this basis is many
times; the foreseeable demands
which will be made
on our
bank¬
There is ample room
here for the monetary authorities
to expand the credit base.
Surely
ing system.
can
question whatso¬
under these conditions
be
that
money
no
market
be
can
bureaucrats,
the
prophecies of doom
via inflation stem
over-emphasis of the
economists on the impor¬
of the quantity of purchas¬
disaster
and
this
older
tance
This is probably as
place as any to take a look
at these prophecies.
Unquestion¬
ably, the great majority of the
economists expect inflation; even
ing
power.
a
though many of them are a little
shy about breaking into print on
the
unhesi¬
that
they will
question,
tatingly assure you, privately,
the die is cast.
con¬
Inflation
No Danger of
country with a modern
and commercial banking
a
greater than
Of
tion
and credit
the people want,
they simply slow down the turn¬
over—velocity drops as it did dur¬
people
by his
the quantity
on
for.
most of these
and
ago
years
attacks
brilliant
reserve
balance will support from $500 to
Banks
is
influences
these
Thus, we
Even in the United States, the
up
Mathematically,
1934.
of
fiasco
In
ing the war.
On the other
when
the quantity is less
Times
on
the dollar devaluation
did
he
as
is
is
Bell Teletype—NY 1-310
will
rely
ciples which are not realistic. Man
tral bank and the volume of credit.
the quantity of money
New York 6
large quantity
a
power
inexorably lead
and
and
anistic
in 1929.
years
portant; but to assume that it is a
controlling factor is wrong. When
\
that
assume
of
turnover
a
a year
purchasing
want,
they
hand,
than
increase^ the
course,
have infla¬
can
we
But it will
It will be almost as
the domestic "tragedy"
this country.
in
be difficult.
difficult
as
lost his wife
of Pat who had just
In an
effort .to console him, the priest
said, "It's hard to lose a good
wife."; "Yes, Father," replied Pat,
in
automobile accident.
an
impossible."
Government can
inaugurate unsound policies which
"it's almost
•
761
SECURITIES
at
-
To
evitably
The "it cannot last" economists
Members New York Stock Exchange
70 times
some
wild inflation is to
completely over-emphasize quan¬
tity in the equation of exchange.
Now, quantity, of course, is im¬
,
with
contrast
fair to call it die-hard
is
12
Teletype
PFLUGFELDER, BAMPT0N & RUST
leading cities, other than
York, is currently around 15
New
in
of
system such as ours.
Specialists in
100
in
after is neither a machine nor an animal.
of conspicuous error!). In America, at least, he still has
Upon what do the distinguished freedom of choice, in respect to
economists, who back this con¬ spending. And, he can always de¬
tention, base their claims? 77 77''"' cide to "sit out the dance," just
it
central
NY 1-1499
same
velocity by working the existing
quantity harder.
Thus, the an¬
nual turnover of demand deposits
-7 •"
■.
examine the basis of this
(and, I think
us
trolled in
5
HA 2-6622
Situations
.
die-hard contention
the
Railroad Bonds and Stocks
Telephone
Selected
'
7 ■' " •
Interest Means
Inflation" Theory
ever
Van Tuyl & Abbe
NEW
Basis of "Low
there
72 WALL STREET
v-'yV'!"- 7
:-r
■
■
it's 12 years
by borrowing and, at
time, they increase the
quantity
the
quantity of gold held by the cen¬
to the close of the year.'
On the basis of its past record,
Baltimore & Ohio and not
of
~
ac¬
ber of months and
contrac¬
and. penalties thereon. All of these
structures
TRADING MARKETS
and
on
average
traffic reports it is indicated that
up
i'
did
company
earnings, with
the debt structure down into line
accom¬
late!
it will be all the
because
severe
more
years,
far greater than
been
correction is bound to come
a
and when it does
«
plished along the lines of bringing
Orders Solicited in
has
that
1.27
for this anticipated poor showing.
The road has been experiencing a
little
However,
has happened
in this field in the last 12 years
has been artificial and abnormal;
which
Everything
'
.
material change in the road's basic $0.65 a share and for 1945 it is now
traffic position.
^ indicated that the road will report
The management has been no¬ a deficit. Distortions due to accel¬
and
trolling factors which determine
the level of interest rates.
But,
no!
The old school-tie boys say:
oeen
of
roads
would
■■
of
that
operating in the same
general territory. Nothing has de¬
los angeles
'
than
favorable
performance
chicago
;/
revenue
Class I carriers
a
:
the
years
period
trend has
a
ed
(Continued from page 123)
the railroads which avoid¬
among
The Outlook for Interest Rates
Lacka¬
more
Thursday, January 10, 1946
CHRONICLE
Obviously, the
will
cause
inflation/
Obviously,
refuse to pro¬
if labor continues to
Ob¬
people can
spending spree and bring
duce, inflation is
inevitable.
viously, the American
.
INCORPORATED
^5 Broad
Street
New York 4. N. Y.
Telephone BOwling Green
",
Teletype NY
boom
Seaboard Air Line Railroad
itU
CUARANTEED RAILROAD STOCKS-BONDS
ous
V
•. •
'*■ • '
"
...
•
We will discount profits and assume losses
1 '
in
•
•
the
above
"when
issued"
Coming into a normal econ¬
omy, even though it be a period
of prosperity, there can be. little
^promise of excess earnings suffi¬
cient to provide for liberal sink¬
ing fund payments. In fact, with
present
higher costs, and
the
prospect of further w,age increases
this
year,
a
level of business
somewhat
above the 1941
level
would
presumably not produce
earnings much, if any, above $1.00
contracts.
1-1063
SUTRO BROS. & CO,
.
& Western R. R.
Members New York Stock Exchange
120 BROADWAY, NEW YORK 5, N.
might be in pros¬
pect.
9-6400
Delaware, Lackawanna
this might not be too oner¬
consideration as fairly rapid
debt retirement
.
.
-
a
Y.
Telephone REctor 2-7340
a
share on the common.
go on a
inflation down on
I
enough
am
themselves. But,
of an optimist,
sense.to emulate Samson
common
and
our
pull the temple down
who take a look
The economists,
swollen vol¬
immediately
anticipate wild inflation, do not
give sufficient weight to the fol¬
at the quantity
of
ume
credit
of
our
and
lowing:
1.
of
The
our
.
.
Members New
BATES MANUFACTURING CO.
1, 1992
UNITED PUBLIC SERVICE, Com.
UNITED PUBLIC
people.
Putting purchasing
63
Wall Street, New York 5
Boston
9-8120
Tele.
Philadelphia
NY
1-724
Hartford
NEW YORK 5
ONE WALL STREET
1. h. rothchild &
co.
Member of National Association
of Securities Dealers, Inc.
TEL.
52 wall
street
HAnover 2-9072
n.
y. c.
SERVICE
Specializing in Railroad Securities
UTILITIES, Com,
Adams & Peck
BOwling Green
York Stock Exchange
BOND BROKERAGE
TELETYPE NY
HANOVER 2-1355
1-2155
5
Tele. NY 1-1293
Philadelphia Telephone
—.
:
high standard of living
Mclaughlin, baird & reuss
2nd Mtge. 4-6s
about
ears.
Warren Division
Due May
or
an
idealist, to believe
that these groups have too much
possibly
Lombard 9008
•"'Jo!
■
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4454
163
ards, is quite different from mak¬
Corporations will give consideration to the political
depletion, depreciation aspect of the problem/ In a de¬
and other reserves regardless of mocracy, where
both the poli¬
the -monetary
the rate of interest.
People will ticians " and
au¬
ing purchasing available to people
buy insurance with but little re¬
into the hands of the Amer¬
people, who are already on
power
ican
luxury basis by European stand¬
a
who
do
the
have
not
necessities of life.
elemental
<V
«
•
.
nancial safety).
to the accumulation rate.
Likewise, higher interest rates or
lower interest rates on savings de¬
gard
thorities
have
their
"ears
to
credit even before the
groups
of
use
consumer
war made
posits do not seem to have much,
in the street largely in-! if any* direct influence on the
rate of saving.
(Such rates may
dependent of the volume of bank
credit. He bought when the urgeS affect the competitive position of
man
asserted itself—if he
had '
cash he used it, otherwise he used
credit extended by a sales-finance
company.
Lack of wherewithal,
never stopped an American from
buying anything, if he wanted to
buy it.
Consumer credit will be.
expanded greatly, now that the:
•war is over, so that available cash
;to
buy
will
a
little
of
be
as
consequence
limiting factor in this country.
..
V: 3. Since World War I dumped
the gold of the world in our lap,
credit expansion in our banking
system has never been held back
shortage of gold.
Further¬
since the inception of the
Reserve System in 1913,
.member banks have been able to
borrow reserves and have thus al¬
by
a
more,
.Federal
been able to
ways
credit far
more
their
expand
than they actually
1913, it has been the
Since
did.
good sense of the bankers and the
public which has saved us from
^inflation.
In other words, infla¬
tion has been possible since that
time but it has never gotten out
of control so far as the- quantity
credit is concerned.
corporations and
individuals end the war with the
of money and
4. Our banks,
the savings banks with regard to
the other savings institutions, but
this is
even
tion.)
unproved assump¬
an
; :V /■
It is doubtful that this high-low
;
•
interest
level.
In most cases,
higher
a
://\v!
.
Professional
management
principal
of
feels
as
that
liquidity of idle funds is of
greater importance than the re¬
and his next concern is easy
avail-;
ability of part or all of his savings.
Convenience, friendly treatment,
and habits of
saving also influence;
business the
by
more
rate
is
all-powerful interest
over-simplification in
these days of indirect and insti¬
tutional savings:
As a matter of
fact, in several fields of saving the
capital
more
We also ended the war with¬
war damage
at home
age.'
direct
and
with productive
companies
facilities far
beyond the needs of the country,
'if such a thing can be possible.
AVith half a chance, our industrial
.
machine
produce not only the
can
to
accumulate
pension fund to protect old
Likewise, larger payments
a
out
o.
has
saver
a
must
be
made
the
to
for
insurance
insurance
protec¬
tion and to the savings banks for
emergency
secure
In fact,
reserves.
the
lines
of
to-
protection in all
same
capital• accumulation,
goods we need, but also an enor-- there must be more actual savings
mous volume for export.
We pro¬ by the individual under a low rate
duced for most of the world in
than under a high rate of interest.
wartime; surely, we can produce
all we need for ourselves in peace¬
time!
In fact,
the huge produc¬
tive capacity of the country
is the
safeguard against inflation.
best
is
This
not
not go
.will
to
say.
Of
up.
that
prices
course
they
will—say from 5% to 20% or pos¬
sibly even more. Taxes are higher
.and labor costs are higher; so,
;
higher prices, yes; inflation, no!
The Sound International
•
Status
of the Dollar
is
There
one
especially favor¬
situation which has not been
tary
relative international value of
which
to fear
that
do not have
we
point to the opposite.
From the
standpoint of the supply of needed
goods and from the standpoint of
safety,
the
United States
will
an
prove
irresistible magnet for;
the funds of the entire world for
"a long time to
Interest
The
come.
Rate
Savings
have reached, the end
we
economic rope and that we
put up interest rates if they
do
not go up themselves,
they
over-emphasize the importance, in
modern
society,. of the interest
of
our
must
rate
as
the determining factor in
the rate of
saving.-
High interest
rates, they say, induce individuals
the
postpone
:to
satisfactions
of
present spending
to
mite future time.
Conversely, low
interest rates,
age
some
indef--
they hold, discour-*
savings—people feel the
ward is
re¬
inadequate and they spend
current income and even accumur
late savings.
This theory may have been ap¬
plicable
in
the
individualism
days
but
it
of
does
rugged
not
fit
the modern scene with its corpo¬
institutional savings and
the everlasting quest of the com¬
rations,
mon
man
for
go
reference to interest rates
those which
in
But
States,
before
on
icies which
on
accumulation
On
rate.
policies, which
a
on
social security
(fi¬
a
I do not concede that
<j
terest rates,
in¬
Their
rates.
I
has
been
specifically
I
di¬
v
;
that
maintain
the
monetary
supply factors during the
coming year will be such that the
Government
will
not
have
to
exercise any of its great technical
from
agency, can expand the
credit base.
The resulting excess
made
will drive banks into the
do
mediate
the
I
tation
future
interest, they have
no
problem.
Furthermore,
as
everyone knows, they have a con¬
;
so,
it
This is under
or as an
have
have
not
Also, from the standpoint of the'
*
'
/
1
no
circumstances
to
be construed
offer to buy, or as a solicitation of
The offer is made only by
War
bonds
/
be
made
it
theories
clear
of
/
Effect of Mature Economy
Obviously,
economy
our
as
comes more
mature and
come
familiar with
more
public
debt
lower
rates
behavior
of
interest rates.
offering of these Debentures for salet
offer to buy, any of such Debentures.
means of the Prospectus.
;
as an
an
,
a
be-j
,
/-'■;
$25,000,000
»«.
.
/y-y/ v'
■
■
''.:
-v/
y
;
•
y
/Vy ■/,
•.
THE ATLANTIC REFINING COMPANY
be¬
large
anticipate
Government
must
we
the
in
as we
y/Z
bond market. ;s
/'y'
••.■
..
Twenty Year 2%% Debentures,
;
/
So, what do they mean, "cheap
Due
money"? They should look ahead;
not back. ? They should get over
the idea that there is something
Liberty
The
historical
status
quo
but
we
prewar
ante is of
it doesn't
have to return
to
Price 101% and accrued interest
These economists remind me
of
the
stocks
stock
were
•
j
the
about
other
and
interest,
follow that
it!
"sacred"
or
bond
January 15, 1966
brbkers, v who
so id
"too low" in the Oc¬
1929, break.
Some of us
said, "You call these prices low?
tober,
Wait
until
prices!"
said prices
and
t
our
too low in 1930
were
answer
was
the
same!
!
/:
next year's
The stock experts again
see
you
i
Copies of the Prospectus may be obtained from such of the several underwriters, including
y ~
the undersigned, as may legally offer these Debentures in compliance
:
V*
with the securities laws of the respective States.
,
Again
were
1931- the;
in
same
claims
made and the same answers
given; and it was not until 1932
stock
speculators really
learned what was meant by the
term, "low"!'
•
;
!
that
As Josh Billings, the New
land
cracker
barrel
Eng¬
philosopher,
Smith, Barney & Go.
put it, "It's better not to know so
much than to know
ain't so."
so
much that
:
*
-
.
.
•
.
No discussion of the trend of in¬
terest rates, particularly the rates
on the public
debt, should fail to
January 9,1946
(
to
the
do
fully explain the present day
1.
-
that
interest
'
-1
rates
increased
I, these rates
-.
/
that interest
to
NEW ISSUE
just
exer¬
finally, I hope I have
clear
not
orthodox
Strong Money Market Position
•
If
prevent inflation: I also hope that
serious limi¬
any
their power to do this.
on
up.
going down,
And
market to buy Government secure
ities, etc. I do not see in the im¬
new
market to
money
cised at all, it will be to keep rates
pointed
reserves
in the
powers
keep rates from going
Government through the Federal
Reserve Board, a politically
ap¬
ad-
convinced that the demand
am
and
this economic group.
at
lower rates of
'
have
we
individuals,
On the other hand, the Govern/
higher
the
based
are
tion I believe that
ment wants low interest rates. The
their old pol¬
provide for
While there is
increasing;
So, then, other than the po¬
litically* impotent rentier class,;
who wants higher interest rates
badly enough to fight for them?
i
are tin¬
are
\
recapitulate:
danger of infla¬
me
subsidized;
have declined, their taxes
rected
paid depositors.
companies
closing, let
or
interest
widely
ply reflected in declines in divi¬
Insurance
In
.
have
compulsion to seek higher
versely::affected
Recapitulation
institutions.
increased, and their cost of authorities will be able to con¬
living is higher/ They would like tinue their tight control of the
interest rates to go up. But let usf money market in the foreseeable
be realistic: their political influ-; future.
I think it is to the interest of
ence is negligible.
In fact, the ef¬
the Government and society to
fort during the last 12 years to
spread the national income more keep interest rates down.
rates.
Most of them are mutual
and the decline in interest is sim¬
dends
balances.
na¬
are
hospitals
or
to become a golden torrent) will
increase both deposits and reserve
the Imperial
Government
World
high!
are
no
deficit
the return flow of currency to the
com¬
pared with the historical rates on
British Consols or even the 2%.
German
der
shifted
banks and the inflow of gold into
the United States (which promises
prevailed in the past
United
the
Savings banks, likewise,
is
have
high.
From a public
standpoint, they should
higher interest rates.
the
on
pubiic debt as being "low." To be
sure, these rates are lower than
rates.
that
-
oppose
v
bonds
The budget
certain
on
"normal"
and
To return to the economists who
say
must
very long
points and
practically no memory at all on
other, just as important, points.
For example, take their continual,
memories
our
flight of capital. On the
all of the indications
a
contrary,
-
higher" economists have
It is the best in the world,
means
rates
-
of such
toward
comes
are
That is, the
sufficiently stressed.
money.
"interest
•
rates which ruled
in the present mone¬
able factor
The
is
lower
invested
on
these
particu¬ to have higher interest rates.
I do not see any politically pow¬
larly those living on bond income,!;
have been hard hit by the current; erful groups seeking higher in¬
relations
in
earnings
;
of
to the banks.
a
Wealthy
than doubled,
their
burden
of
return difficulties.
they no longer
to pay interest on demand
deposits, the interest paid on time
deposits is lower than ever before,
and
cially the E bonds, will result in
increased deposits if the financial
as soon as the
rapid rate and may be the; labor disputes are settled the dan¬
political solution of their rate-of-j ger will gradually recede.
at
have
exact reverse of the
theory. Thus,
the lower the rate of interest, the
field
Government owned
ings
an
entire
schools
resources
heldlby business in various
and continued redemp¬
tion of E, F and G bonds, espe¬
reserves,
Eleemosynary institutions: such further increase in deposits as the
schools, my own university, for- bonds are sold to the banks. Also,
The savings of labor can
placed in the 2.9% Series E
bonds, which gives them a fairly
be
Their
ties
or an¬
rate
po¬
for next year will also result in a
tionalization
more
wages.
terest rates.
way
by the
dollars there will be available for
regulation of the volume of sav¬
an
influenced
in the
great deal.
a
one
insurance
example, hospitals, etc., have been
adversely affected by the decline{
in interest rates.
But politically
these
institutions
are
impotent
and
economically they are not
very important. In fact, the trend
satisfactory rate of return.
No,
This is not to labor is not interested in
higher
say
that interest should not be interest rates.
:/; \V
:■; ■
paid.
It is instead an effort to
•Farmers, One of the strongest
point out that the rate of interest
pressure groups, on the whole are
is not the only factor nor is it the
borrowers and thus now, and tra¬
most
important factor affecting
ditionally, favor low interest rates.
the rate of capita£
gccumulation
Commercial
banks
no
longer
from savings.r• t. /:/"':
iso,
this
theory of automatic have the pressure for higher in¬
him
in
exceptionally strong
an
Thus, next year the re¬
demption of Government securi¬
interest.
rate
safety
the
: ciably
theory is even ap¬ turn. As a matter of fact, a
large
plicable to
most
small savers.. part of their, liquid assets is in
They save for protection, for a demand deposits, so, rate of return
rainy day, for old age, for misfor-; is of little consequence to them.
tune, or for something specific.;
Labor feels that the lower the
The small saver's first concern is, interest
costs of
undoubtedly
is in
companies
will be able to shift the problem
of lower interest rates to the buy¬
ers
of insurance and, as I said
earlier, their attitude is not appre¬
Business, on the whole, is a
debtor and thus favors low rates.
effect of the rate of interest is the
:
■
to
go
■.*
•world.
'
to
rates
sition.
other,
in the body politic- desire
interest
position with
!
respect to both credit and capital
of those of any country in the
strongest financial
'
tinually augmented by the discov¬
of new medicines-—the sulfa
important supply and de¬
factors, the money market
more
drugs and penicillin, for example.
ground," the political angle is al¬
most a controlling one.:
So, let us
.the
wide
mand
ery
the
descend into the realm of
practical
politics and see what economic
2. The
-
siderable cushion in the mortality
tables—a cushion which is com
as.de
set
137
THE COMMERCIAL & FINANCIAL CHRONICLE
"Thus, the Industry Series pro¬
vide
for
investor
the
establishing
can
be
sive
as
he wishes.
ANNUAL REPORTS
funds during 1945 is now
coming to hand in the form
the end of the year.
\
•
,
,
,
.
..;
year-end and moving the
company into third place in size
among mutual investment funds.
During the fiscal year total distributions
to
stockholders
103% in net assets to
$82,873.498i is reported by Group
Securities in the 11-month period
covered by the fiscal year ended
Nov. 30, 1945. A further increase
of nearly $5,000,000 occurred dur¬
ing the month of December, rais¬
ing net assets to over $87,500,000
$5,881,221 of which
represented net profit
amounted
to
$3,779,678
Unreal¬
the sale of securities.
on
of securities
amounted to $18,162,104.
appreciation
ized
owned
Mutual, Inc.
Mutual
increased from $45,915,241 to $77,assets of Investors
Net
748,453 during the calendar year
1945, showing a net increase of
$31,833,212.
'•
'
the
for
dividends
Total
year
$3,608,534 and un¬
realized appreciation was approx¬
imately $15,500,000 as of Dec. 31,
amounted
to
American Business
appreciation is
risk
Shares
Business
marizes by means
of
11-month
fiscal
covering its
ended Nov. 30, 1945;
period
year
Asset value at the beginning of
the
63 Wall Street
One
rr
New York 5, N.
•
Y.j
of the
Nov.
on
per
30,
appreciation
amounted
to
3"
'
■
unreal¬
and
1945
Nov. 30.
at
$8,187,248.
—
$3.80
1945 had
risen
to
$4.84,
an
increase of
27.4%. With dividends of 180 per
share from security profits and
'44b per share from net; investment
uncome, the total increase in asset
value plus dividends amounted to
$1.36 per share, or 35.8%. Net as¬
sets of
the fund were $37,123,and
ized
N.
amounted to
year
share
213
-
about
market,
he
-
Hugh
W.
Long
Co.,
&
in
the
"Letter" eschews the usual yearend forecast of
come and
discussion
of the advantages to the individ¬
ual
investor obtainable
through
the 20 Industry Series of New
>
Priced at Market
I
Prospectus upon request
from your dealer or
York
\
Stocks, Inc.
"At any given time, the outlook
for
some
for
RESEARCH CORPORATION
industries
than
vorable
NATIONAL SECURITIES &
things to
the space to a
devotes
GROUPS Shares
the
is
more
that
market
for- others,
as
a
whole.
New York 5, N. Y.
\
fa¬
or
In
addition, the securities of certain
industries
tend to
be
more
tile than those of others.
vola¬
Conse¬
quently, in periods of rising prices
120 BROADWAY
a
;
number
of
the
the
more
industrial
of
Shares
he
of
volatile
possibility
loss
average
this
Group Securities
is
continuing upward.
ly managed fund for growth." In
the management of Fully Admin¬
istered
writes this spon¬
sor,
"conservative methods are
applied to achieve moderate obr;
jectives. The record shows that
the results
usually surpass the
objectives."
3
'
'
V
3. '
Although at no time have more
.
of
than
60%
been
the
invested
the
in
in
growth
share during the
Fund's
stocks,'
common
asset value per
past three years
and Atomic
Prospects
Bombs
The
Vv"
notes"
issues
recent
most
two
investment
1946
in
of
bombs"
that
are
com¬
ing in the form of new inventions
which
discoveries
and
will
pro¬
foundly affect the competitive sit¬
uation
of
individual
companies
industries.. .V
and
•
333337/;333'333
"In spite
of labor troubles and
Government price fixing—both of
which are, for the time being, re¬
tarding .production of goods in
many lilies—the condition^essential"
prosperity
business
for
still
present
are
overwhelming
force.
By the same token, the
promise of favorable
corporate
earnings, lower tax rates and a
huge supply of idle capital seek¬
ing investment, provide a strong
in
for
"In
and
bonds
both
age
of all
abreast
the
significant de¬
the
industrial
in
velopments
There aren't
enough hours
day for him to properly
the
of
supervise a diversified investment
list.
Buying securities to
'put
away and forget' was always un¬
sound investment policy.
Now.
more than
ever, it is filled with
hazards.
Now, more than ever,
successful
investment
requires
careful
selection, wide diversifi¬
professional super¬
cation
and
vision,"...
on
3%,
On
v. '■'
>'7;
■
.
.
industries
of
entail
greater-than-
Wellington Fund
In
a
memorandum
1945 div¬
on
idends, Wellington Fund reports
that the total of $1.50 per share
including regular earnings and
security profits are taxable as
follows:
.
■
,
of
Percent
total
representing
dividend income 41.36%.
of
Percent
The
total
calls
memorandum
atten¬
tion to the fact that only 50%
long-term capital
able and goes on
for the Diversification,
information
ful
in
Supervision and Safe-keeping
gains
are
the
for
his
on
$100,000
mission
investor
income
.
L"
,
,
tax
.
•
'
re¬
sue
General Distributors
Prospectus
Tke
may
or
Keystone Company
MANAGEMENT OF
50
KARL D. PETTIT & CO,
Securities
of
Investment
article by its
R. Macaulay,
be obtained
local investment dealer
of Boston
,
com¬
will be
funds
all
3%
commission
an
Investment: Bulletin
management
Abbett
Lord,
for 1946.
groups
the
lists
stock
industrial
favored
the
or
Shares,
Business
The list is pref¬
with the warning that it is
aced
remember
"that
within groups widespread differ¬
to
important
valuations
in
ences
individual
list
The
n£,
as
between
will
occur.'
air condition^
stocks
;
includes:
aircraft, airlines, automobile
iirtd
trucks,
auto accessory,
&
2uit'ran^/baking,' buiidirig mate-
Congress Street, Boston 9, Mass.
Interest
economist, Dr. Fred
on "The Future of
After surveying
governing in¬
terest rates and discussing the ar¬
guments
the
one
interest
for
hand
rates
cheaper
as
on
money
against
the
Macaulay concludes
as
on
higher
Dr.
follows:
other,
the market. A
on
hasn't
truly
out
hole-proof
of ramie
rayon
stockings
instead
ing reading matter
so
down
.
.
*ial, chemical, department stores
or
the ceiling
actually
lying-
methods of home
new
.
made'
of cotton
on
read
can
you
one
machine for project¬
a
...
new
yet been marketed is
heating where » the heat radiates
through the plaster, eliminating
registers, radiators, etc.
a new
"packaged kitchen" whereby the
refrigerator,
stove,
incinerator 33;.,73
.
and dish washer will be
the
machine
same
.
.
part of
a
a new
..
floor¬
known as stonoleum which 3/:33,
can.be applied directly over con;
ing
floors
crete
cracking
avoiding
.
.
dust
and
machine
new
a
.
automatically
figure
dividends,
pay rolls and
do billing at the
speed of 4,000 per hour.
/'
33,3.': Salesmen
7 As
the
vs.
whisk
cleaner 5:
broom
7
3/73
3#-
7>
Inventors
vacuum
grandma's
.
to
put
5/3:
of
out
business,
the - new electric dust
,7/ 3
collector destroys the dust so that
bag is
even
a
type
unnecessary.
oil
of
can
to
use
.
.
A
.
coating
house¬
prevent fruits -777
and
vegetables from getting dry
and prevent ham and other meats
from getting moldy is being sold.
To
offset this, the vacuum cleaner
salesmen will offer a new electric
clothes brush!
We will
•;;777-
longeh
telephone our telegrams
but simply write them and drop
them in a slot and they will be
delivered by facsimile television.
need
no
to
Some
.3//33
will be selling
333
which need filling
only once in ten years; and new
v i
dry-cell batteries which will out¬
GI
men
v
pens
v'':
last two hundred of the old fash¬
drugs, floor covering, liquor, mail
pub¬
ioned
radio;
railroad
equip¬
ment, rayon, rubber, soft drinks
3oap and textiles.
•
-i
11-
-
/.
;'''///:
cally by pushing a button under
your pillow (I already have one);
lishing,
Investments
Selected
Co.
7
—
;
A
kind.
The
win¬
bedroom
dows will rise and fall automati¬
old-fashioned
while
screens
will
seums.
I could write
be
window
only in
seen
a
37
mu¬
column
on
3333/
plans for the frozen food in33;/
dustry and also forecast that your.
new
printed copy of a speech, "Look¬
ing Forward," by President Ed¬
ward P. Rubin of Selected Ameri¬
can
Shares.
.
.
.
Fidelity
Inc.—168th" Monthly
Fund
Report;
re¬
print of article by Alec B. Stev¬
enson, "The Use of Mutual
In¬
vestment Funds for Trust Invest¬
Lord, Abbett-—Cur¬
rent issues of Abstracts; supple¬
mental information to the pros-,
ments.".
.
Business
American
pectuses
on
Shares,
Affiliated
and
Fund;
Funds; Compos¬
ite Summary folder for January.
National
Securities &
Re¬
search
Corp. — Portfolio
memo¬
randum showing changes during
December in all National-spon¬
Trusteed
Union
Information
sored funds; Current
Keystone
Co. — Revised general prospectus
dated Dec. 20, 1945 covering al
10
Keystone
Custodian Funds
folder for January, v
supplementary
\
.
prospectuses
6, 1945, on Keystone
B-3, B-4, K-I, S-l and S-4; Cur¬
rent Data folder for January or
Dec.
all Keystone
fiftids.
;
Dividends
Bond
"Manhattan
Ordinary
will
break /no 3:333/
or
glassware—why?
Be- 7337
they can't be broken! The 7/ 7
best opportunities, however, will
grandchildren
dishes
cause
to
come
those
SELL
who
things/ rather
than
ventors.
®'
1
,
these
the
to
in¬
33:
,,
..,
,
Fund,
'
7
Inc.—
31
and an
Distributer
50 per share for i
No.
Distribution
amounting to 90 per share
Extraordinary
of
140
per
share
15, 1946 to holders
payable
of recorc
Jan. 5.
;/;'/,■/
Chemical Products Enticing
V\:' :"l<;
•
7 Great steps are being taken in
colored photography for amateurs.
I expect soon to have an elec¬
on my table,
cord connection with
the wall. During 1945 one of the
leading investment houses sold
stock for an entirely new process
requiring
no
of
marketing
powdered
fruit,
juices. 1945 showed great strides
in fluorescent lighting. 7 All our
garden seeds may soon * be im¬
munized so that no bugs will at¬
tack the
plants.
New develop¬
ments in x-ray read like fairy
.
tales.
7 7."
7-7 ;••/-
Hundreds of
new
uses
:
for rub¬
ber
are in the offing while microphotography has some surprises.
We must also remember the pos¬
sibilities in ply-wood and superrayon.
do
for
Electronic eye-glasses may
the nearly
blind what
hearing-aids
deaf.
New
are
doing
for
and
the
synthetic foods, flavors
aromas
Dunn & Co. in
Austin
has resumed
ness
his investment busi¬
from offices at 112
Street,
Dunn
East Ninth
under the firm name of
& Co.
Mr. Dunn has re¬
cently been on active service.
.
great possibil¬
ities and the rayon factories may
soon
AUSTIN, TEX.—James L. Dunn
have
be
turning
out
candies,
other
food
products.
and
PLEASE DON'T WRITE ME FOR
PARTICULARS
FURTHER
RE-7
GARDING ANY OF THE ABOVE
THINGS.
I
AM
NEITHER
AN
INVENTOR NOR CHEMIST BUT
AM MERELY PASSING ALONG
NEWS AND DREAMS.
7 •'
•
337"
tronic bread toaster
cookies
an
Rates."
the present factors
now
that
'
•
order, movies, paint, paper,
Research
Timing
is
fountain
bis-
new
recording music, messages,
etc., on magnetized wire; well this
wives
In
I mentioned the
of
new
2%.
American
kill, flies and mosqui¬
*
.
i
Corp. presents in the current is¬
Knickerbocker Shares, Inc.
Teletype NY4-2439
the gross
more,
or
on
amounting to
"
,
National
your
will be reduced to
Bond Fund A
Tan.
from
3';7'3: 7V:
single orders of $50,000, bul
$100,000, the gross com¬
on all funds except Union
total
Exchange Place
New York City 5
7'
■
Interest Rates
Request
20
loading charge
going to the
less than
tax¬
to include help¬
turn.
•r
*
2%
mission
of
reporting his Wellington Fund
dividends
of Investments
on
gross
7.';'
dated
representing
long-term capital gains 58.64%.
;
Prospectus
a
with
Mutual Fund Literature
of intensive; spe¬
cialization,
the j individual
in¬
vestor
~cannot
hope . to
keep
in
tinue
37/3'
this
world.
uord, Abbett funds except Union
3 and Fund A which will con¬
and the dealer selling
pros¬
predict
and
"atomic
more
of
weekly ^"Key¬
Co.'s
discuss
pects
announced
a
standard
Stock
65%/
Keystone
Has
concession of 6% to dealers on all
■
.
.
.
<
Abbett
establishment
he
as
Average 4%% and the dealer selling com¬
.33'' 777/3
33 mission 3%. On single orders of
Industrial
over
Dealers
to
Lord,
assets, -dealer.
has exceeded the rise in the Dow-
Jones
;%
Shares,
reported
signal
omposite
"a complete¬
as
discussed
s
of
Class
Each
Index.
Timing
eight factors i-.i the index
separately and the
af the
new
a
Administered
describes
year-end position of the
Investment
stock
greatly outpace the
general market, while others will
lag behind. Obviously, in periods
of declining markets .the secur¬
ities
the
T. to
.
against frosts
./paint mixed with
groves
.
A year ago
art
3.
'Credits to Britain" and summar¬
in
Group,
Fully
3
year-end edition of In¬
vestment Timing includes a short
article by Dr. Max Winkler on
Fully Administered Shares
on
*
D. D.
toes.
be
The
izes
Distributors
»;:
*
•
.
industry groups."
folder
will
bonds
and
and insects.
Government
both
on
corporate
chards
low rates
maintained."
when
trend
use
money
...
;;
will
groups
://f/
and
his
reduce
stocks....
current edition of the New York
SELECTED
the
can
interest
of
(Continued from page 124)
"smoke screens"
to
protect or¬
market it
clear that for the foresee¬
the
of
able future the present
mar¬
stocks
common
demand
Mew York Letter
Securities Series
seems
in¬
likely
sum¬
sijmple bar
a
results of the
chart the
Distributors Group, Incorporated '
most
to
or
doubtful
a
American
YOUR INVESTMENT DEALER OR
in
Investment
Shares, Inc.
report outstanding for its
attractive and clear-cut presenta¬
tion
of
the
facts
and
figures,
In
7
goal,
his
those
on
seem
of income,
ity
,
REQUEST FROM
er
may
in the direction of high¬
rates, with the Government in
control
If he desires relative stabil¬
ket.
by
1945.;
a PROSPECTUS ON
as
New Ideas Discussed
pressure
the
Investors
RAILROAD
which
defen¬
out-perform the general
stable
*
at
Group Securities, Inc.
A rise of
•
to
business
If better-than-
concentrate
can
dustries which
<" Tangible evidence of the
excellent results achieved by mutual
of their annual
reports
In la number of cases fiscal years were changed in 1945 to
end on Nov. 30 so as to enable the companies to furnish shareholders
with complete dividend information for income tax purposes before
■■■
or
sharp expansion in
ultimately
exert
"Although
means
a
program
a
aggressive
as
average
he
with
Thursday, January 10, 1946
//3
Volume
Number 4454
163
THE COMMERCIAL & FINANCIAL
CHRONICLE
139
Wallace Sees Shift
To More
Future of Interest Rates
(Continued from page 123)
have bought other Government
securities
of
higher yield and
longer term than the 90-day Bills
or
1-year Certificates of Indebt¬
edness, thus creating supplies of
Spending
.
(Continued from page 127)
producers' goods will continue to
create inflationary pressures
most evident in the shrinkage
was
of total wages and
production volume is sufficiently
high
to
meet
these
demands.
salaries. These
payments dropped by 12% from
the first to the fourth quarter of
"he year. The demobilization of
Price
control, therefore, will
con¬
i;he
tinue
to
sup¬
some
which
will
be
not
be
relieved
until
until
necessary
sector where the
sential to the prevention of spec¬
ulative
movements
and
to
the
worked, loss of overtime pay, and
some decline in employment.
achievement
of
orderly
an
pansion of output. 1
f
'
In
the
half
first
Dulk of it occurred in the civilian
ex¬
1945
total
Sharp curtailment of war expend¬
itures
following
V-J
day
was
partly offset by an increase in ex¬
penditures for consumption and
for private capita! formation. As
a consequence, a 50% cut in war
purchases from the first half to
the fourth quarter of the year was
accompanied by less than 15% de¬
timated
of
come. In addition to
flected in the national
come
payments
transfer items as
soldiers'
and
over
being met
the
year
been
the
little progress
made
in
end
had
end
to
year
Tfy'r
additional factor
of
the
to
year
20%
by' the
/
Even
though the shift in
proportion of income spent
important part of pro¬
ductive activity was directed toj ward the replenishment of civil¬
ian goods inventories, many of
an
substantial, vthe, peacetime
the
was
rela¬
tion of consumption to income had
not \
yet
been
reestablished.
If
which had been reduced to min¬
imum levels during the war
supplies of durable goods and
riod.
.
inventories
ness
nounced net
showed
a
pro¬
increase in the
sec¬
ond half of the year, after a
pe^
of decline which started in
the second half of 1941.
'. With the
release of resources
riod
for
civilian
services
ply of
use,
were
more goods and
available for con¬
in 1945, although the
sup¬
sumers
many
durable
important
goods
such
consumer
automo¬
as
biles, refrigerators, washing ma¬
chines, and radios was still neg¬
ligible and deficiencies in relation
to demand
were also evident in a
wide range of soft goods and serv¬
ices. Consumers spent for
goods
and
services
about
$103.5 billion
in 1945 compared with $98.5 bil¬
lion in the previous year. The
holiday trade in the fourth quar¬
ter was
the highest on
record,
notwithstanding
many
-
The whole process has led to a
continued expansion of the entire
monetary and banking system of
the country.
As a result, the sup¬
plies of reserve balances in the
tain
the
fact
that
commodities
of
prewar
quality were unavailable.
Expenditures
for
nondurable
goods, already at a high level at
the start of the
year, increased in
dollar totals
over
the
previous
by
year
three
about
5%
quarters and
in
the
first
by about 7%
in the fourth quarter of the
year.
Durable
goods
which in the first
were
year,
expenditures,
three quarters
about 6% above the previous
increased
by
fourth quarter.' The
gain
15%
in
the
outstanding
in the automotive group
with 25%, due
primarily to. ex¬
penditures for repairs, parts and
was
accessories. Sales of durable
goods
were
considerably below wha<;
consumers would have
spent, hac
sufficient supplies of this
type of
goods been available.
The effect of
declining war ex-
periditures
on
the flow of incomes
scarce
items
spent in 1945,
war
on
of
cer¬
nondurable
the basis of
kep:
pace war war-time
interest rates have shown a
tendency to decline rather than to
rise.•.
V. ■'
Indeed, the. investment yields
Government
declined
As
we
fronted
enter
with
1946,
.
to
terest rates
rities
has
is
and
that
public
World
more
them
toy this,
an
the
other
excessively low
securities
point
a
on
have, how
where
con¬
income-yielding in¬
no
on
Government
created
abundance
secu¬
artificial
an
the entire credit
on
the public would
Government
prolonged
revise their interest claims down¬
wards in order not to be excluded
one. in
from
In
a
market in which they are
with the cheap
competition,
power
% % still maintained here. !
"» There arfe two schools
-
ojthought
this^mer,'one favoring
lowering
fur¬
interest rates by
the Government, if
possible, and
oi
the other
advocating a raising of
the rates,'
.*•
'/if
:fvff
•
Secretary of the Treasury Fred
M. Vinson puts the case for con¬
tinued easy money:
"Low rates
make it possible for f the home
buyer to get
each
dollar
more
house value for
of
monthly payment;
local taxpayers to
get more schools and more hospi¬
tals for their tax
dollars, and for
State
•
■
While it is hoped that it will
not be regarded as a
precedent to
be followed, it is observed that the
for
stand
and
in
favor
and
While
there
seems
ty
no
a
of
general
r
..
control
capital fi¬
with
of
the
Government
in
the
money market it
s'eeins clear that for the foresee-"1**
able future the present low
rates
of; interest on both Government
and corporate bonds will be
main-'
tained.*—Reprinted
V Now that
the Bretton Woods
agreement has been ratified the
is
approaching when the
time
poration, New York, N. Y.
v
;J
This advertisement appears as a matter
of record
/ be construed
;
as an
only and is under
offering of tfiese securities for sale,
or as a
no
circumstances to
J
solicitation of an offer
to
we are con¬
economic
-
the
complete
mies.
Allied
In
defeat
of
cooperation
our
ene¬
with
ill Buffalo
the
this was signally
accomplished by mid-year. This
complete victory ; was promptly
followed by the shifting of our
Niagara Electric Corporation
powers,
resources
Preferred Stock,
3.60% Series
/J
'
K\
?,
-.if-:-' ($100
par
value)
W
to
nonw^r use. 1
■ The process of shifting and ad¬
justment is still in progress, and
may
be
expected
to
continue
the new year.
Our
throughout
7SI7.IPrice $102.85
major problems to be overcome
include the speeding up of output
Share
(plus accrued dividends from January 1,1946 to date of
delivery)
in the reconverted
industries; the
reemployment into civilian occu¬
pations of the millions of veter¬
ans;
the
holding
of
the
line
against inflation until such time
«.
as this
danger is removed by the
greatly enlarged flow of goods
and
required services; and the
development of balanced relation¬
ships between prices and costs so
/
■■
1"
in
writers, including the undersigned, as may
to lay the basis for
extending
business 'prosperity after the im¬
lawfully offer the securities in such State•
as
petus
now
Lehman Brothers
imparted by deferred
Stone & Webster and
v
demands arising from the war has
spent its force.
Incorporated
I
A. G* Becker
'
\
Kennedy V.-P. of Lowe Co.
Kennedy has been elected
a
vice-
president of Justus F. Lowe Co,,
I First National-Soo
Line Building.
Co,
Incorporated
.
E. H. Rollins & Sons
'
MINNEAPOLIS, MINN.—W. H.
/
r.1
•*
ago. Then, we had a single pur¬
pose which f was
to
devote the
requisite economic resources to
?
vestment Department of the
Na-;
tional Securities & Research Cor¬
situa¬
tion which differs in
many aspects
from that which we faced a year
an
J
from the Janu-'
issue of "Investment
Timing,'*
published by the Economics & In¬
qry
♦'
'
rather'than by"
new
rates,
in¬
securities
..
stocks
bonds,
Conclusion
enough to be sold to
other investors than the commerr
i.
of
of
Although^ sharp expansion in
business
may
ultimately exert
pressure ih the direction of "higher:
attractive
*
at or close to
(
vestors, but they generally admit
higher, interest rates will be
required to make future refunding
j
now
equities.
that
cial banks.;
refinancing
nancing may afford former bondbuyers a'greater participation in
;
Government
and
means
commercial banks
.^
' ...
of
remain
as
means
leading economists of the
country ; favor
transferring the
issues
funds
corporations are now in a
strong' position
to
finance
by"
The
non-bank
for
expansion,
should
many
Government securities less in the
hands; of 7the
to
tend¬
and, with the money
an irre-t?
duc.ible minimum, fewer of these'
undertakings ' will' be seen.
As
retaining /'cheap" money,
increasing belief that the
advantage to the Treasury of hav"ing.extremely low rates is perhaps
less important than would be the
advantage to the public at large
of having the
ownership of the
debt
demand
business
rates
-refunding
market
of
bank-held
long
the
there is
■
come
that has been possible to
corpora¬
tions through progressive contrac¬
tion in money rates has been
car-/
tied through,
the desirabili¬
than it is at present.
be
present level, at least
the present Administra¬
tion is in power in
Washington.
;
It is recognized that much of
as
Advantage to Treasury
disagreement about
money
at about the
cheaper money to
its. primary objec¬
which
great
from
high-grade
that the
moved, from
no
results
tive would be to achieve
stabiliza¬
tion of the
existing rate structure.
}
Reserve banks.
in
If
would
coming, from the Federal
money
ther
cheaper
realize
had
new
sharp expansion in
crease in their
earning power andl
resulting improved quality.
:
a
psychological effects of
a
basic change in Govern¬
policy; that, by such a step,
tors,, institutional and private, to
result of
a
would
lie in the
ment
to
a
small upward revision
may appear
such
3%
a
tend to be
relatively little
affected in the early stages of such
movement because of the in¬
of the Gov¬
short-term interest
insignificant, its importance
on
strong demand for
business, there will
general to
while
investors
ency to stiffen the rates of firstgrade corporation bonds. Mediumgrade
and
second-grade
bonds
impede economic progress.
One large financial
institution
that,
to
change in Government short-
as
tend to
contending
own
term interest rates. If there
arises
a
of
ernment's
its
on domestic interest
rates.
Our view is that in the
foreseeable future there will be little or
vestments, thus eventually reduc¬
ing "nest egg" income of millions
rates,
issue
ment
institutions, insurance
policy holders and individuals liv¬
ing on fixed
and in
will
3y2% basis including a guarantee.
It is too early,
however, to ap¬
praise the effect of this
develop¬
charitable
improvements,
Bank
securities, underwritten by vari¬
ous
member countries, and sell
their
declining interest rate, be¬
gradually crippling endowed
sides
market and caused all other credi¬
pre¬
'.>;
fixed charges."
As opposed
view
and
advocates stiffening
siderable concern is expressed lest
they shrink further,' The low in¬
relation¬
ships, from $115 to $120 billion—
that is, $10-$15 billion more than
:
demands,
and
income-spending
they actually spent.
plant
concerns
companies
to
get
for every dollar of
individuals, will in this process
discourage future savings
commercial banks and of
deposits and, therefore, discourage
capital
in the hands of the
public have formation,
hinder
technological
goods and services had been ade¬
quate * consumers
would
have
pe¬
Thus, in spite of the sharp
liquidation of privately held in¬
ventories of war goods, total busi¬
re¬
ment loans to % % compared with
of
part due
these pay¬
of
■
fourth quarter.
As is natural in the process of
to a civilian econ¬
public's increasing
quirements for cash.
\ ;
expansion
of
the
half
men.
the
since July, has reduced the
interest, on short-term Govern¬
rate
proportion of ihcome after taxes
which was saved by individuals
dropped from 30% in the first
yet
deposits ade¬
Government's
the
well maintained after the
the war was in
annual
an
bolstering
business activity was a shift, jfrom
saving to consumption. Thus, the
of
bank
meet
$10 billion in the last quar¬
That consumer expenditures
An
reconversion
omy,
to
mustering-
ments.',-'-;
satisfying the ac¬
civilians, and
returning service
allowances
to
newly nationalized Bank of 'Eng¬
land, at the direction of the Labor
Government which has been in
were so
cumulated needs of
of
such
rapidly during the
reached
ter,
expanding rates. In construc¬
tion, shortage of materials consti¬
tuted important obstacles to the
resumption of activity. Although
housing - construction
increased
sharply on a percentage basis, it
by
income, in¬
include
dependents,
mounted
at
that
re¬
pay and unemployment com¬
pensation. The total of these items
machinery and equipment rose
substantially during the year and
obvious
are
out
,
was
payments for
productive services which
expenditures shared in the "ex¬
pansion.
Business
purchases of
were
those
an
increase of $4 billion
1944,
notwithstanding the
slight decline in the national in¬
in the last quarter.
'■
;
All major components of private
deferred demands
exceeded
year.
1945,
output in the first half of the
year but only for about one-fifth
'
have
prewar
over
than two-fifths of the total
more
to
any
Income payments to individuals
estimated at $160 billion in
is indicated by the fact that
expenditures accounted for
war
hours
in
are
cline in total national output. The
shift
in
production during the
year
reduction
contrast, income of farmers
and
independent
businessmen
showed little change from the
wartime peaks. Corporate profits
were more adversely affected by
the cutbacks in war production.
Nevertheless, for -the year as a
whole, profits after taxes are es¬
;
of
the
principal factors
In
national production rose to an an¬
nual
rate
of
$205 billion. The
and
decline, although the :
of this
ply
and
demand
come
more
nearly into balance. Furthermore,
price control in this period is es¬
were
quate
for
accounted
forces
armed
commercial
industrial
utility
Eastman, Dillon & Co.
Glore, Forgan
Co.
'
Shields &
Incorporated
January 10, 1946
Blodget
-
Company
Wertheim & Co.
i
;
••
-
THE COMMERCIAL & FINANCIAL CHRONICLE
140
a
The Goods-Shortage
1
product inventories are quite low
all through the distribution chain.
Stoves and electric irons and bi¬
'■
(Continued from first page)
that go into civil¬
ian living. A huge pent-up demand
lot of the things
cycles are in most cases
created. An¬
of our
raw
materials, depleted by this
costliest of all wars, still are very
scarce while the need for some of
been
therefore
has
other
parts, where we in CPA are con¬
cerned with spreading scarce sup¬
greater than ever before.
Lumber and tin are examples of
raw
materials
shortages,
while
textiles are scare for various rea¬
plies as thinly as possible,: our
compliance men who] have been
making spot checks in the field
tell me they find very little evi¬
including a lack of man-*
power. Among still other reasons
sons,
are
fore the war.
make long-term com¬
mitments for fear of inflation.
luctance to
certain
the
and
it.
Tax Factor for Shortages
Blames
bituminous
it.
above
Car
1941
And
using
loadings
and
rate
industry
the
as
bear
1941
electric
mind
only
as
don't want
we see
power
that
I
am
measuring
to imply that
is in any
goal today. We need
more
{ Withholding because of taxes,
what
it in Washington, and
prospects ahead of us are. In
words,: what is the con¬
goods production outlook
1946?,And what is being done
the
other
sumer
for
your
your
today.
want to talk about
There
are
no
-
answers
easy
wonders
when he
and
single simple solution and I
am not going to try to give you
any. One of the easy answers to
shortages that has been tossed
around a lot lately is "withhold¬
The
can
get delivery on 1946 models. / ;
Our population is larger than
ever—more people to supply. And
their wants,
multiplied because
they had to defer buying during
the war years, are much greater
than ever before. To this must be
added the need for almost every¬
c
needs and those of
customers? That is what I
fill
to
who
man
by
ing." You know the stories—that
are holding back
manufacturers
full
warehouses
stoves and
refrigerators,
of
bicycles until the year
>7":
these stories
true, and I must say that I do
end.
To the extent that
.
are
not believe they
be
are
true in any
great degree, you ought to
very
getting a lot, of goods on your
and in your show rooms
shelves
Almost
month.
this
have
seven
.
days
the effective
elapsed since
/date of repeal of the excess profits
I am curious to know in what
degree the speed-up of deliveries
/ tax.
since Jan. 1 bears out these rumors
the year end.
of withholding until
I have
been
no
doubt that there has
but I would be very
much surprised if any great quan¬
tities of consumers' durable goods
showed up in this fashion. I un¬
some,
derstand that
have
manufacturers
some
products in
their warehouses until they have
Onough
samples
for
all
their
dealers to display and to start de¬
liveries going on some workable
basis. And, on the
other hand,
some
been
piling
up
manufacturers
campaigned
the
for
have
who
removal
of
Erice held up their finished goods
and material (Controls may
ave
in
the
profits.
I
of
hope
'
think
"
the
getting
bigger
•
.
fact
is
that
end-
and
real
very
full
level.
as
it sometimes
manu¬
facturers in the important metal-
working industries—the ones that
had
the
difficult
most
reconver¬
activity
' .v..;
get
you
one
■
ended. We
the
transition from
war
to peace
production has been rapid and
actually is ahead of the schedule
which industry advised the War
Production Board that they had
out
mapped
,
only
months ago.
•
.
*
Many difficult problems remain
to be solved and of course one of
the
most
important is
the.prob¬
lem of industrial disputes. Assem¬
bly lines are not, in most cases, in
volume
production. In many cases
because
of
of
lack
workers—not
of
Fear
of
this, why can't
goods?
'Well,
is that much of
today's
quarters, consumer
have
risen
are
since
expend¬
the
war
suffering the grow¬
So
you
have
this tremendous
demand for manufactured articles
on
the one hand and on the
other
shortages of materials, parts; man¬
ufacturing capacity and of labor—
the latter either because the right
type of skill isn't available where
it
is
needed
or
isn't working
where it is available.
We have a situation that is com¬
disputes. But the
overall picture is one of progress. parable in some ways to our first
The physical reconversion of the year of war in 1942—when we had
war
plants-is largely completed. to tighten our belts and go through
because of wage
solicitation ot offers to buy any of these
The offering is
we
But
in
40%
so
far.;
and
the
minimum
at
interest
low
a
rates
available
form
now
a
second line
few words about
prospects for inflation, which
is one that concerns all of us ip
and more, however, by worry over;
what might happen over the near
government and out of govern¬
ment very much today. If efforts
being made today to throw off
price controls should prove suc¬
cessful, the danger of sky rocket¬
ing inflation, followed by collapse
will be very real. So far as we
can
make out from our people
who baye talked with you, your
representatives
almost
without
exception are in favor of keeping
prices from sky-rocketing.
The
difference of opinion rests on the
flexibility in the price control sys¬
tem and the amount of price in¬
future.:If
Let
me
creases
say
as
bring
out
-production.
In other
I understand it you are
-
of
favor
in
to
necessary
maximum
words,
a
a
flexible
more
and
realistic pricing and cost absorp¬
tion
policy , that would result in
production
not set-off
would
but
atomic chain explo¬
an
sion bf inflation.
production can come in
tide, the economic situation
will continue similar to that at the
V%
There
was
a
housing
shortage, Today we have an even
more
critical shortage in dwell¬
greater demand.
\
then
•
The export demand for all types
of
products
very '
was
large
1920. Today export demands
ceed; all records,
•
:
■
in
ex¬
•
As
soon
as
the;
ended
war
all
raised
had
flation
price
levels
100% above 1914. Business rightly
a
the
war.
down-
The
be that
■:
of
But,-
Board.
Production
War
following the policy set by WPB,
it .uses them sparingly.;; We are;
not going to hold onto a control,
a day longer than we have to, in;
order to assist industry through
this critical period.
Where our
controls are needed, we are go¬
ing to use them. We haven't been;
getting
enough { moderate
cost
houses. So we have gone into that;
field with priorities to see that
houses are built in a price range,
which the returning soldier can
■afford/;
I■ V--/fe
fM But priorities don't make bricks,The answer we need here, as in so
many other things, is more bricks
coming off the production line. So
,
the Civilian Production Adminis¬
tration's job on
bitter
bricks is to help
get production up. We have given
assistance to brick yards, to lum-.
ber
men for machinery and log¬
ging equipment and to foundries
that
make/soil pipe land other
castings.
In the textile field,
Production
Office
the Civilian,
and
Administration
Price
of
Administration
continuing their efforts to se-.
volume production of low-,
priced garments. As you all know,;
under this program CPA author¬
izes the use of CC ratings for pro- *
are
cure
of
curement
fabric
by manufac-„
agree to make speci¬
fied essential apparel items at or
below the low cut-off prices pro¬
vided in the order.
The
.
mills
labor disputes.
cotton,
are
their
and
wool
rayon
setting aside portions of
production
honor
to
these
ratings. In the case of wool fab¬
rics, a concerted effort is being
made to obtain the
ed' to
the
yardage neea- ;.
million lowand boys' suits in
produce 3 V2
priced
serious depression.
were
last
istration retains all the powers
V
Then the bottom fell out of de¬
was a buyers' strike.
There
the
The Civilian Production Admin¬
in
controls
had
been
dropped. Public and* export de¬
mands swept goods off the shelves
and pushed prices ever higher.
Hoarding and speculative buying
were rampant. Until in 1920, in¬
1918,;
of
surge, a little later would
much more disastrous. /
turers who
i;K. Federal v deficits
are c incom¬
parably larger than they were in
1920.
end
.
r
ings.
:
were
•
Until
full
all-government con¬
lifted today, the up¬
surge of prices would be far more;
powerful than occurred at the
trols
men's
next
three
Apparel
receive
of
willi
cotton
fabrics under this program in
first
quarter
1946
the
amounting
to
securities.
This advertisement is neither
r
-any
The
per
Share)-
may
offer to buy
;
;
.
:
<
i
:
*
Share
Price $35% per
Copies ot the Prospectus
an
Class A Common Stock
(Par Value $5
per
solicitation of
Visking Corporation
cents per Share
Price $22
nor a
150,000 Shares
.
COMMON STOCK
offer to sell
of these securities. The offering is made only by the Prospectus, '■>
13,000 Shares
Susquehanna Mills, Inc.
an
Share
be obtained from the undersigned.
The
Prospectus
the
may
be obtained from such of the Underwriters, including
undersigned,
as are
registered dealers in this
state.
-
HILL, THOMPSON & CO., INC.
A, G. Becker & Co.
;
January 4,1946
Incorporated
January JO, 1946
■
;
-
;
I
I. I
months. ;
manufacturers
authorizations
made only by the Prospectus.
Par Value 50
.
huge supply of investment capital
the
•v.
.
had a stiff price rise, too.
prices have been held to with-;
of the prewar level. The
fear of serious price depression
with resulting inventory losses is
ed
defense, supporting the current
optimistic attitude. That optimistic;
attitude is being tempered more
/
to sell nor a
40% Above Pre-War
During the war so recently end¬
.
The
mand. There
ot record only and is neither an offer
.
;
of
feared
This advertisement appears as a matter
Prices
therefore
inflation,
Threat of Inflation
j
increased
ing pains of an expanding postwar
industry. Demand for sheet steel,
textiles
and building
materials,
to name three, are far in excess
of any normal supply.
short
few
a
of
fear.
..
and in
Administration.
that
-.V,
of
amount
rapidly. There were whole¬
sale
bankruptcies
and
untold,
needless human suffering.
rose
up
unknown—fear
Unemployment
declined.
duction
lasts
producers' durable close of World War I. There are
goods,
rather
than
consumers' the same
explosive factors push¬
goods. This activity is in the mak¬
ing" upward.,
'
ing of the machines a$4 capital ■'••': The volume of
liquid assets in
equipment that must bei installed th& hands'of consumers and busi¬
today to turn out goods tomorrow. nessmen in 1920 was
unprece¬
Another reason is the tremendous
dented.
It is vastly larger today.
buying wave that has swept the
In 1920 there was an insatiable
country.
Instead;: of
dropping demand for consumer goods and
sharply, as had been predicted in services.
Today there is
even
terials
itures
show
is
their debts
with cash.
at a high
industrial activity is in basic ma¬
many
They
Businessmen
*.
consumer
reason
the
problems—tally
4
face
records of the Civilian Production
sion
with
record low.
the
In
:
can give us the highest level
production in our history.
How are we doing? Let's take a
look at the picture today. " •
bad
a
Industrial
of
statements, of
at
are
that
as
15-year peak as 1945 came to a
have largely liquidated
and are well supplied
expanded productive capacity and
vast new fc/ce of skilled labor
The
re¬
close. Bond offerings are absorbed
by banks and institutions. as fast
as they are put out.; Interest rates
a
It is not
condi¬
condition; it reached
a
production and sustained produc¬
tion. As you know we have a war-
seems.
level ot
flected this
severe
it—immediate
use
the
expansion are
sumers' goods. The cure is in our
hands to use if we make up our
to
from
15%
to
The stock market
shortages in so many lines of con¬
minds
10
income has fallen
of the best.
thing by the returning serviceman
or
woman. And that is why we
very
national
last July but the monetary
tions for business
no
have
condition
justified by the terrific pressure
for goods.
to
a
production of 1941
way our
up
are
whole is above
a
in
well
coal
in goods and services, far more, than
we needed in any
prewar year and
You know these factors are in my opinion has not been a major
we
are
not
getting them C. fast
the picture. I do want to discuss factor in today's shortages. And
enough."'';',.v /i/ •
with you just what our situation the end of withholding, assuming
the goods will be released starting
is today on consumer goods, as
j National Income Down 15% :
now, is not the answer for the
/; 1946 Prospects
stepping
rate
stick. I
:r
-
that
have to put every
we
November, with steel at the 1941
for
considered normal be¬
While
.
the
was
Prices went over the cliff as pro¬
readjustments in order to
stuff rolling in volume
effort into
production. Until we
get it high enough, we need at
least a few government controls
booming prewar year.
to spread the available supply of
Gains in Every Industry
scarce things
and to fight run-*
;■
Since October, gains have been 'away inflation.
In several important fields there
registered in virtually every in¬
have been work stoppages, wage
dustry. A sharp rise in basic ma¬
terials and services occurred in disputes, some uncertainties and a
inventories. On the
what
the
later.
Employment has held up wellcurrent unemployment is only a
half of that of 1941, which was a
contrary, they find inventories as
a
rule are running smaller than
dence of large
industrial
disputes, work stoppages, either
present or in prospect, and re¬
shortages
the
and component
for raw materials
them is
for
flowing
immediately off the assembly lines
into the distribution channels. As
is that many
reason
Situation
lot of
•get
Thursday, January 10, 1946
Lehman Brothers
Volume
170
Number 4454
163
THE COMMERCIAL & FINANCIAL
CHRONICLE
'million
yards,
including
nearly 50 million yards for men's
shirts, or about 1,700,000 dozen;
of
20 million yards for men's under-
give
shorts
and
(about
about
children's
The
million
to
about
dozen)
for
priced
for
women's
and
about
25
misses'
to
and
one
million overcoats and
topcoats, in
addition to more than three and a
million suits. The suits will
60
at
about
$33.
In
I
on
as
You,
gentlemen,
the
real
will
benefits
quarter program
ent first quarter
Most
The
getting
the
of
fourth
during the
of
Serious
most
be
pres¬
1946.
snortage,
as
you
are
is in men's suits. It is the
toughest supply problem we have
and
is
tremendously vital in the
re-establishment
>
back
into
of " the
civilian
life.
veteran
The
real
for the serious
reason
shortage of
suits, regardless of any-.
thing you have heard to the con¬
trary, was the heavy demand by
the armed services which necessi¬
tated the invocation of M-73.,
By
this order, irom December 1944
to
August 1945, a period of nearly
eight months, the
very
period
during which cloth is ; normally
produced for men's winter suits—
the Army
was
getting virtually
all
of
the
worsted material that
would have gone into men's suits.
This,
to
clothe
and
{
all Know, was necessary
we
our
troops
the Far East. \
in'' Europe
/
\
We
are
put
of
won't
worsted
fabrics.
and there
There
be
may
and
wages
men's
to
wear
women's
wear
fabrics, but we
shouldn't lose sight of the over¬
all perspective in which the
pres¬
shortage appears; namely the
of that eight months'
pro¬
duction.
And remember that this
clothing
shortage
is
temporary
only.
I, understand that some mem¬
bers of this group are pessimistic
-
.
about
the future
suits but I
starting
Civilian
tion
is
duction
than
made,
this
close.
a
will
be
men's
1941
and
in
We
a
present
But ob¬
long way
time, the
t
suits:
lion
men's
about
about
suits.
September
probably
suits
in
individual
Other
I
am
cases.
-
in
some
of
other
shipping
tors.
manufac¬
by
the
industry,
That.;gives you a. goodfiidea, of
what is being done
today when
It is
not
the
300,000 a month'.
figure because
there there has been
of
shifting
not
are
average
exact
an
a
up
schedule.
into
good deal
Jan.
output.
war
ties
as
to
000
were
mental obstacles we ourselves
have created. If all of us will but
are
our'heads instead of
tions*
arid
make
-'Let
-
be
But
the
me
months
was
than
750,000
1939.
But there
garment
the
hands of
makers
we expect
even
flowing
since
this out¬
greater
levels.
the scarcities born
.five-year global war in,,a
go
up
of
a
few
months.
Until supplies are more abund¬
a
large share of the suits
and
shorts
produced
and
must
to those who need them most.
The
retailers
.•> ,:'V'
critical to the indus¬
are
trial future of
soeed
our
country.
production
up
at
If
we
one*3
as
people
rection
stocks
and
inexperi¬
buying
have bought
have
1937
been
many
in
the
priced
shares
more
been
bid
the
than
7,
up
market is
the
^months
of
11%
in
unexpected
that
reason,
of 1937, while the DowIndustrial Average is sell¬
ing around its highs of that year.
cline.
tent,
counts
buy fewer stocks
than
sharp de¬
a
Offsetting this to
is
the
are
in
fact
on
a
1937
should be
any
unfavorable develop¬
ments could result in
March
internal
much thinner
the upside and the
on
downside.- For
Jones
can
The
today both
higher
.
People
cor¬
average
ers
and
improve
the
strength of the market.
grade issues. Barron's Low,Priced
Index
is
79%
higher than
in
5.
correction
a
At
of 1936,. Such corrections
tend to weed out the weak hold¬
competitive
result, |he lower
have
sharply
its
two
over
had.
'more.
or
April
c more
a
have
we
10%
industrial
advanced
only
11
after
during the war but that will have
difficulty showing satisfactory re¬
times ahead..As
of
top,. the
had
shares of companies that benefited
sults
since
years
they
so
more
some
ex¬
more
that,
ac¬
cash basis
today
liquidation
any
deliberate and less
and pour on the dealers' shelves a
flood of goods, we can thereby
forced than in 1937.
make
factors
today
1937, it
seems
sure
curred
that the crisis that
after
World
;
as
compared with
likely that the mar¬
higher in the next
few years. But, regardless of a
favorable longer term outlook, it
oc¬
War
I, with
prices followed
its
ket
sky-rocketing
quickly by panic and depression,
will
not
be
repeated on a yet
.
disastrous scale.
more
We
have
the
;
'
*
the
man¬
agement, the
force.
cult
labor
still
months
there
is
one
sure
In
the
ahead
cure
for
-
us,
the
rations should be
look
can
one
and
can
solved
confident
will
be
quickly.
that
solved
thoroughly
Commitments
made
on
;
:
V,A
Frank McDemiott With
O'Connell & Janareli
Frank
this
the
and rnell
1
.
*
ruri.
forwatd to years of
am
more
or on unconfirmed rumors
seldom profitable in the lorig
runaway inflation,
highest prosperity this coun¬
try has ever experienced.
When
a
problem is known- it can be
I
saleS.;
or
are
the
solved.
much in¬
so
impulse
good measure of indus¬
trial peace, arid assurance that we
we
today's market be¬
analyzed before making purchases
a
will notriiave
in
there has been
experienced buying. As prices ad¬
vance, basic facts regarding corpo¬
dangers of inflation and unem¬
ployment. That is sustained, :allout production of goods.
" ;
:
Given
wheat
cause
diffi¬
of
sell
great deal of chaff mixed with
the
know-how, and the
skilled
will
should be recognized that there is
-1
a
plant,
;
.
Because of the many favorable
McDermotU has
joined.
Trading Department of O'Con&
Janareli, 120 Broadway,
New York Citv.
This
of
the
announcement
is
nation
\
-
'
have
■•.'.V
:|Y -
offer to sell
not an
*
the securities mentioned herein * The
w
nor a
solicitation of
an
offer
to
buy
offering is made only by the prospectus*
v/yy
has
rate
In October 84,shipped.. In November,
■Electronic Corporation of America g ;gg|
(A New York Corporation)
month after month.
70,000 Shares
washing machines, the ship¬
doubles
in
the
compares
December
month.
a
October
with
was
That about
rate
Convertible Preferred Stock
and
peacetime base-
a
{
Before the
out
more
a
for
the
October
civilians. ;>
fields where
Price
a
to
compete
a
because
with
the
automobile
or
vYYYZ;
of
they
"
*
v
^
Y:Y\YY.»
YYy.
;"if
Y:;'yY^YYYY.,y.;Y;;
100,000 Shares
|
No¬
Probably
lot
$10 Per Share
v
Common Stock
(Par Value 50'/ Per Share)
new
Price $5 Per
Share
have
furniture
A copy
•
of the prospectus
may
be obtained from the undersigned.
production
I
'
-
\
.
lines have been slowed up, as you
know, by
have
and
year
wage
Y:.:/ j•' -ivY'V'.' YYY YY !,;•
differences which
affected
assembly
plants
suppliers. By the end of the
we had produced about
75,-
Y. ;'Z
YY
Y YY
SIMONS, UNBURN & CO.
YY,Y Y. YYYYYfYYYYYYY^t; YY;Y Y/;YYZ-Y'YY ■■ YYYV::YVYYY;.:Y
HIRSCH & CO.
;
clocks
we're
doing
C0BURN & MIDDLEBROOK
well.
Incomplete reports
from the industry
covering both
spring-wound and electric clocks,
a
IRVING
sharp increase in output
since October.
Estimated October
shipments for the entire industry
were 600,000 units.
By December
that had gone
up to 900,000 Which
'r
~
v.
;
>,
'
CHILDS, JEFFRIES & THORNDIKE
'Y ''
alarm
pretty
show
'■ YYyYYVY 'Y
FIRST COLONY CORPORATION
000 passenger cars, 315,000 trucks
and 16,500 busses.
On
•
§g§f§S?
YYYi
..
The
/
M:
■Y;:V
;.'i
■. ■■
YlWi"'
people have gone into production
during the war. The radio manu¬
facturers are having trouble get¬
cabinets
V"
•V
million radios
month.
shipped in
.
used to turn
war we
than
Y ;
'
(Par Value $1 Pet Share)
.
period rate of a^out 160,000.
of
However, the men's suit shortages
a long time to
come:
It simply is
impossible to
shirts
be
quickly solved; •
VYr;'
say, that the riext six
total
a
mil¬
will be present for
:
to
than
in 1932-1937. More
were
actual output was consider¬
ably higher because radio is one
from
into
ant,
our emo¬
effort
bought
rep¬
1945
rate
mills
short
an
reasonable, tolerant, and goodnatured, most of our problems
could
securities
enced
the
from
make
the
"all-out" production must
be, and
can
be, overcome. Most of them
115,000 and in December 150,000.
that's the important thing.
Production
is
moving
upward
million.
worsted
reach
below
wage-cost
And
million,
increasing yardages of
Day, and
and
factors; and
reluctance
to
make
long-term
commitments caused by fear of
inflation.
Yet, these obstacles to
use
been
criminating in this bull market
to
climbed steadily.
14.3
The
more
would
survey
1, the industry made
vember
and
put to
goods, for
Today
.
activity will be
more
expected,
of about 340,000, which is,
only a
little more than a month's pre¬
20
woolens
V-J
next
to sell.
makers.
the
the
currently capable of reaching
to shortages of
component
oarts; work stoppages: uncertain¬
industry and we
that the firms •;which
the
none
a
men's
In
In 1937 and
(Continued from page 125)
most cases its productivity has not
per dollar than in 1937. At pres¬
increased,
V;
ent, margin requirements make it
3. Many corporations could not
necessary to put up $750 cash for
watch their costs
carefully during every $1,000 purchase. In 1937, it
the war. It may take some time
required only $550 to buy $1,000
for them to regain the productive
worth of stock in a
margin ac¬
efficiency they had in. 1937.
count.
4.-People have been less dis¬
; 6.
It has now
the entire postwar indus¬
But it's pretty close. kUp to
try.
ting
the
8.
—due
in
sure
first
is
the
on
About 150,000 wore shipped
prewar rate was
of
been
in¬
today
that
up¬
the
True, production of consumer
goods, so eagerly awaited by the
public," may be below' what had
.
be
December
remember
for
Day last May
production goals which industry
about
half of their prewar -"volume of
domestic
mechanical
refrigera¬
in
V-E
turned
,
'
refrigreators:
are
November
translated
you
consumer
'
,
,
;Take "
whole
few months that
showing the volume that
is coming from the factories
right
turers
a
the
ahead
goods,
now.
as
in
...
figures
making consid¬
Industrial, pro¬
over-all,, just about on
schedule, with capital goods well
up
Totals
that you will
production
suits produced in
have been
-
on
pro¬
holds
Production
sure
terested
month, as compared with
the monthly
average of 1,376,000
.
item
one
are
the
Incomplete reports from
the industry indicate that ship¬
ments during December were less
than 100,000 sets, with little or
December
to
not
are
1939,
the total for
somewhat less than 10
was
of
consumer
latest reports show that
reconversion and production are
production
of
we
since
And
more
were
in
estimate
1944,
ward
Administra¬
lack
and
customers.
your
progress.
duction
re¬
We
radios
a
show that
erable
others, and by special assistance
rate
16.5 million suits
in
where
80,000
soon,
,
more
lot
a
Shortages :
why you
of
problem, as you
know, of filling up the distribu¬
tion
pipelines
before
you
can
ring up many sales on the cash
register.
But
the
figures
also
time
stores.
your
bottlenecks
about
begin
Situation in Men's
Clothing
To give you some idea of the
in
get
expediting
On
meeting, for some
pent-up demand for some 40,000,000 suitings.
,
/
'
to
offer
have
we
you
about
,
show
lot
a
and ■ other
to
You'
wherever possible, by the use of
preference ratings, by breaking
ment
from
picture
until
Production
supply of men's
before
even
we
able
are
will
month comes to
viously
satisfied
convinced that the
am
reappearance
men
and
Consumer
furniture
program.
far
for
The Stock Market
resent
from
ent
thus
showed
figures
have
goods
standing still; the job now is
keep accelerating output. The
prices,
to
the
loss
textiles
be
made
reference
shift
don't
important
the Admin¬
stabilization
goods into
other reasons, with
are
Explain
most
in
produc¬
month
same
cleaners
These
I
quite a bit about
it is a subject
close to all of us and
the
The
prewar
of the prewar
between June 1940 and June
i94i..
V",V:v,
not satisfied with the out-*
tailers
you
,
" So regardless of what CPA. or
CPA can do how; there is
just no
quick way of making up an eight
months'
' production;y of
men's
'
your
rate.
1941
rate
continue
and
voluntary pref¬
problems
istration's
men's
<
you
the
141
peace¬
26,000, about 17%
can
because
..
; aware,
:
retailer
of
vacuum
have falked
current
to
immediate
clothing
57%
tion
not
Problem
serious
that
that is very
it is one of
yards of cotton fab-,
24» million yards of ray¬
fabrics are set aside for sale
over-the-counter piece goods;
and
and
servicemen.
of
care
clothing
addition,
million
i-ics
The
of
latest reports we have on
domestic
electric
irons are for
October and they show
210,000
shipped in that month, or about
and women.
half
retail
shirts
erential treatment of service
half
a
take
strengthen
million
boys' trousers and
and
75%
The
to
am
them.
urge
contemplates the production
pairs of men's and
7
them
and is playing a big role in do¬
ing voluntarily what the Govern¬
ment might otherwise have to do
of
and boys' low and medium-priced
garments in this quarter, the pro¬
of
I
crease
wool fabrics earmarked for men's
gram
asked
triotic
dresses.
yards
-
which
represents about
time shipments.
glad to see this pa¬
spirit. This is a time to
reduce
government
controls
wherever
possible,
not
to
in¬
will
million
million
our
in
recent Declaration
siuts
shorts.
yards, with the largest item rep¬
resenting nearly 70 million yards
With
cooperative
extremely
returning veterans prefer¬
in the purchase of these low-
ence
coveralls.
120
"
following
Policy
yards
and
authorizations
rayon
amount
1,600,000
8
overalls
been
Incorporated ^
GRUBBS, SCOTT AND COMPANY
J. RICE U COMPANY
11
THE COMMERCIAL & FINANCIAL CHRONICLE
142
.
Thursday, January 10,
1946
dend of $0.70 per
share paid Aug.
Thus Chase changes from
semi-annual to a quarterly basis,
Byrnes Explains Moscow
1, 1945.
a
Bank and Insurance Stocks
This Week
'• ./ 'V
.
'
»•••'
•
7/.V, ''i
],*
V, /'•" -.'7V
;.V/';/'!<
/. ;
to
$1.60,
Chemical
Bank Stocks
—
•*
Bank
stockholders
7'/-V*-
v."
7v:;;7^7':; 7.';
which yields ap¬
proximately 3.3% at the current
market.
'' 7 ''
$1.40
DEUSEN
By E. A. VAN
7,
and increases the annual rate from
a
Oct.
on
is possible only/ by
agreement.
' '///V'
Our objections to the Rumanian
and Bulgarian Governments have
been not only to the exclusion of
action
and
the
common
larger powers are subjected
to the judgment and public criti¬
cism of all the nations which took
1945,
'7/ '■.
i
agreement
action under the Yalta
preserved is that the proposals oi
25%
31,
approved
dividend
stock
What is
form than the substance.
Co.'s
Trust
&
Accoid
(Continued from page 129)
7
in general, fluctuated thus increasing capitalization from an active part in the war. The
the year only moder¬ $20,000,000 to $25,000,000. The an¬ procedure contemplates and re¬ important democratic groups from
those governments but to the op¬
ately aboye their 1944 year-end prices. As measured by the American nual dividend rate of $1.80 was quires that these nations formally
and publicly make their .recom¬ pressive way in which those gov-Banker Index they moved from 45.8 as of Dec. 30, 1944 to 50.7 on Dec.
maintained; present stockholders,
The larger powers ernments exercise their powers.
31, 1945, an appreciation of 10.7%.
This compares with 26.6% for the therefore, are receiving the equiv¬ mendations.
now
our
obj ections have
are
not bound by these recom¬ Until
Dow-Jones Industrials and 27.5% for the Dow-Jones Composite, alent of
$2.25 per share on orig¬
The range for the year was be- »
——-——
—
~~~
" inal holdings. The annual rate of mendations, but they must agree been little heeded by those gov¬
ernments or by the Soviet Gov¬
in order to draw up the final trea¬
tween a low of 43.3 on Mar. 26 Bankers Trust shows a decline of
$1.80 yields approximately 3.3%
' 7/
ties.
7'.r •■•7
and a high of 51.8 on Oct.
Certainly the United States ernment. ' /
17, 2.4'%. > Bankers .Trust, however, on the current asked price.
It must be recognized that the
would not agree to a final treaty
equivalent to 8.5 points or 19.6%K has moved up sharply since the
Continental Bank & Trust Co.'s
which arbitrarily
rejected such Soviet Government has a very
on
the low.
In the case of the first of this year, following the
stockholders
approved
a
25%
recommendations.
Certainly the real interest in the character of
Dow+Jones Industrials, the range announcement of a dividend in¬ stock dividend on Oct.
-31, 1945,
the governments of these States.
crease. '•
7-'
,"'7 "v ' 7
was between the low of 151.35 on
increasing the bank's capital from great powers which drew up the
The relative lack of interest m
Jan. 23 and the high of 195.82 on
draft charter for the United Na¬ These countries are neighbors of
$4,000,000 to $5,000,000. The divi¬
bank stocks is rather difficult to
the Soviet Union and were in¬
Dec. 11, equivalent to 44.47 points,
dend rate of $0.80 remains un¬ tions; at Dumbarton Oaks did not
volved in the war against the
explain, in view of the continued
or 29.4% on the low.
changed/and becomes the equiv¬ ignore the changes suggested by
Soviet. Union.
It is therefore to
strong upward trend in earning
The following table shows the
alent
of
$1.00
per ' share
oh the smaller powers at San Fran¬
be expected that the withdrawal
assets, book values and operating
cisco.
range during the year of the bid
original holdings. The dividend
and
of the favorable rate of. $0.80 yields approximately
The test of a; successful t>eace of Soviet troops from these coun¬
prices of the stocks of 20 prom¬ profits,
tries /may depend upon the So¬
inent New York City commercial dividend action that a number of
3.5% on the current asked price. is not in the form of its making,
but whether
it both commends viet Government's confidence in
banks; also the change in the bid banks have taken. It may be of
Irving Trust declared a yearprice of each from 12/30/44 to interest to review some of these end extra of $0.20 per share, com¬ itself to the nations concerned by the peaceful character of these*
actions, considering the banks in
;12/31/45.
pared with $0.10 in 1944.
Total its justice and wisdom and also governments.
I
urged
upon
Generalissimo
TWENTY BANKS—RECORD OF BID PRICES
dividends for 1945 amount to $0.80 commands the. support of those
During 1945, New York City bank stocks,
within a relatively narrow range, and ended
r
~~
:
-
.
•
—1945 Range—
of
12-30-44
.Bank
of New
Central Hanover
Chemica.1
113
104%
"
129 %
______________
113%
130
14.5
109% 7
124
713.5 7
.Commercial
47
.____
Irving
Morgan,
J.
National
7—____
York Trust
New
'
20%
3.8
55%
62 y4
12.9
Public
U.
S.
Trust—
■
•
The average
20
stocks
s44%
7,■ ;7
;:
/.
+ 12.5%
dividend in¬
ber, 1945, a probable
On Dec. 13th its directors
crease.
quarterly dividend rate
declared
a
of
change and
per
$0.30
share,
payable Jan.
2, 1946; the previous payment was
$0.25 Oct. 1, 1945. The new annual
rate of $1.20 yields approximately
3.5%
U.S.
current market.
on
Brooklyn Trust declared an ex¬
tra of
able
Trust Co.
Dec. 20, 1945, pay¬
Jan.. 2, -1946; including the
$1.00
on
Bought—Sold—Quoted
to $5.00 per share compared with
$4.00 in 1944, and yield approx¬
imately 3.7% on the current asked
price.
and
1
\"7
leading exchanges
other
WALL ST.
Chase National Bank, an Dec.
26, 1945, declared two quarterly
dividends of $0.40 each, one pay¬
able .Feb.. 1, 1946, and the second
payable May 1, 1946. The previous
payment was a semi-annual divi-
Exchange
NEW YORK 5
Telephone DIgby 4-2523
7
yields
National
■
'
19 New
NEW JERSEY
York#
$4.00
a
stock
of
dividend
nual
40,000.
of $35.00
rate
per
One
peculiar result of this change from
regular
quarterly payments of
$15.00 plus an extra $10.00, to a
regular rate, will be that a stock¬
holder will be paid in 1946 (only),
$76.00 instead of $70.00 per share
of old stock* 'Otherwise, the only
share
j
capital
400,000 to 440,000. On
10,-1945, the stockholders ap¬
proved the issuance of 110,000/additional shares, bringing the total
number of shares to 550,000. The
annual dividend rate is to be in¬
Dec.
the
on
,
40,000 shares.
of this stock dividend is
the market price of the
/in half and perhaps, thus,
to increase its market attractive¬
ernment
soon
as
as
speech, press, religion
These are the
under which we will recog-
freedom of
association.
and
terms
effect
to
cut
stock
$1.50 to $1.65 upon
completion of this financing. This
rate yields approximately 3.4%
creased from
Royal Bank of Scotland
Incorporated by Royal
rent market.
ends
Thus
.
for
record
the
Branches throughout
LONDON OFFICES:
far as the above twenty
concerned. The stock¬
not been entirely
forgotten,
,
*
.
are
holders
Scotland
the
year, so
banks
OFFICE—Edinburgh
HEAD
yields approximately 4.3% at cur¬
'
Charter 1727
The dividend rate of $35.00
ness.
United States Trust, on Nov. 23,
1945, declared a 100 % stock divi¬
dend,
increasing
capitalization
from $2,000,000 to $4,000,000, and
3 Bishops gale, E.
have
8 West
C. 2
Smlthfield, E. C. /
Charing Cross, S. W, t
Burlington Gardens* W» I
64 New Bond Street, W, t
BANK OF AMERICA
'
"
'
" l
Request
ARDEN FARMS
J. S. Rippel & Co.
Exchange
7
*
n
*7 ft!s 1
;*'■*
V
v
TOTAL ASSETS
COMPANY
£115,681,681
KAISER-FRAZER CORPORATION
1891
COUNTY LAND COMPANY
KERN
Associated Banks:
18 Clinton St., Newark Z, N. J.
7:;,
Telephone: BArclay 7-3500
Established
:
120 BROADWAY, NEW YORK 5, N. Y,
Teletype—NY 1-1248-49
to
BANK STOCKS
Laird, Bissell & Meeds
Bell
20,000
intention to establish a regular an¬
10% 7 on
increasing
31,1945
Members New York Stock
from
President Pell states that it is the
i,■1;
Rumanian Gov¬
they are sat¬
isfied that the government has
been broadened to include two
truly representative members of
two important political parties not
now represented in the govern¬
ment and assurances have been
given regarding free.? elections,
will recognize the
shares from
,
on
do
shares
Bank declared
dividend
7
coun¬ agreement.
satisfactory and condi¬ 7 The British and American Gov¬
not warrant concerted ernments have agreed that they
are
tions
yields approximately
Jan// 9,7 1945,
'
Circular
tries
increased" its
3.5% at current market*
Public National
■
governments of those
the
quarterly rate from $0,875 to $1.00
on June 5, 1945.
The new annual
rate of
A
49
Bank Stocks
December
,
,
Trust
cooperate with us to this end.
triparite commission is to
proceed immediately to Rumania
to
That divergence is ac¬ to advise the King, who has sought
the fact that in those the advice : of the three Allied
countries democratic institutions governments, on broadening rep¬
have not functioned in accordance resentation in the Rumanian Gov¬
ernment.
At London we asked
with .traditions familiar to us.
,The .Soviet Union contends that this but .were unable to secure
previous payment of $0.65 on
Aug. 1, 1945. The new annual rate
of $1.60 matches that of Chase,
and yields approximately 3.1% at
York
Rumania and
against it in making ;■ these
governments more representative. \
And for the first time since Yalta
the Soviet Government has agreed
not
centuated by
the
New
oc¬
wide
a
Government and
with the Soviet
Bulgaria.
share, on Dec. 26, 1945, payable
Feb. 1, 1946. This compares with
at current market.
Comparison and Analysis
the governments of
City bank declared a
,
still
is
There
divergence in our viewpoints on
semi-annual dividend of $0.80 per
current market.
have
free /elections
curred.
ap¬
>'
•
con¬
we have found it possible
recognize Austria and Hungary,
where
in¬
compared
The new
$2.40
London
the
Since
ference,
proximately 3.7% on the present
regular semi-annual of $2.00, total
annual dividends for 1945 amount
Members New York Stork
of
rate
the
on
capitalization,
$0.50 previously.
annual
*
announced
at4its annual meeting in Decem¬
of Manhattan
Bank
appreciation was achieved by Em¬
pire Trust with 32.5%; minimum
appreciation was 3.8% by Con¬
tinental, while Commercial Na¬
no
,Average
alphabetical order.
12.5%7 Maximum
tional registered
14.4
declared
was
with
4.5
46%
share
creased
8.7
810
*708
-
12.8
asked price.
appreciation of the
was
■
■
for stock dividends.
""Adjusted
11.8
to
cussed, /
30, 1945. On Sept. 4, 1945, a
quarterly dividend of $0.60 per
14.6
.
112 V*
103%
99 %
7;: 40%
800
"
•
62%
49% ;
,
,
4.6
23.8
312
'
•.
44
:
20 VB
54%
279
•
,
367
:
351
16%
•
of the ex-satellite States was dis¬
June
12.7
'
to preserve
current market.
.on
whose
nations
share, yielding approximately
completion of this financing, cap¬
ital funds aggregated $110,431,598,
compared
with
$95,812,972
on
32.5
2,035
7
1,805
,
7-
38%
840
-
110
83
274
114%
/;■ 54%
o
*19%
54%
66%
320
50%
P.
City
26.2
49%
"
•
Manufacturers
4.7
52%
,
49% *
52%
83
2,240
1,725
7 397 77% 330 ;
21%
15%
Empire Trust
First National____,-___-________
2.4
47%
*41%
19%;
r
—
"
63%
112
_•
Guaranty
49%.
53%
27 -
Continental
iCorn Exchange
39
67
<
50%
.
45
47%
*
____________________
4.0
466
448
51%
and
Foreign - Minister
unity is essential Stalin
the peace/ The method Molotov that it was in their in**
upon
at Moscow gives terest as well as ours that the
Manufacturer's
Trust's
stock¬ agreed
holders approved, on July 2, 1945, ample scope for the achievement peoples of these countries, as well
as their governments,
should be
the
issuance
of
412,500
new of these essential results.
peacefully disposed toward the
shares, mainly for the purpose of
Recognition of Axis Satellites
Soviet Union.
I stressed the fact
redeeming, on Aug. 1, 1945, 385,The question of the recognition that it was our desire to work
485
convertible
preferred.
On
per
3.9%
23.3%
33 y8
:
426
45
139
_______________
ciation
12-31-45
-26%
25'A
53 %
Chase National
.
Low
483
York__
Bankers Trust
Brooklyn;Trust
Appre¬
—-1945 Change——
High'
"
MahhattaniLTTTT^ 7.' 35 %•
■Bank
!
/%7
Williams Deacon's
PACIFIC GAS AND ELECTRIC COMPANY
MArket 3-3430
Bank, Ltd.
Glyn Mills & Co.
'
(L. A.
Gibbs, Manager Trading Department)
i"
N, Y. Phone—REctor 2-4383
(Preferred^)
SAN DIEGO GAS AND ELECTRIC COMPANY
Bought
Insurance & Bank Stocks
Bought
ANALYZED
—
REVIEWED
-
"
'
Sold——Quoted
& Brokers
m.
Inquiries invited.
to 5 p. m.
(P. C. T.)
Orders solicited.
4
'
.incorporated
INVESTMENT
,
210
New York
-
Teletype SF 431
Chicago
L.
-
A.
Sau Francisco
279
-
L.
A.
280
•
-
650 South
7
*
Uganda
Bishopsgate,
London, E. C.
26,
in India, Burma, Ceylon, Kenya
Colony and Aden and Zanzibar
LOS ANGELES 14
;
.
Subscribed Capital
-
Reserve
Teletype LA 533
!.
Paid-Up Capital
The
Seattle
the Government in
Office:
Head
Spring Street
TUcker 3151
432
San
Beverly HilU
Diego
■"'.'.'v•
Stockton
San Jose
Oakland
WIRES
to
Kenya Colony and
SECURITIES
YUkon 1551
West 7th St., Los Angeles
TELETYPE
Bankers
Branches
CALIFORNIA
PEIVATE
■
'
SAN FRANCISCO 20
BUTLER-HUFF & CO.
OF
of INDIA. LIMITED
1
,300,Montgomery Street
;7
'
First California Company
.
a.
NATIONAL BANK
1
"
COMPARED
-
Special Bulletin and Booklet Service to Dealers
Trading daily 7
Quoted
Sold
'
'
;:-Vr
.
Santa Ana
Long Beach
Sacramento
Fresno
Beno, Nevada
.
•
,
Monterey
Pasadena
Bank
£4,000,000
£2,000,000
£2,200,000
Fund
conducts
every
description
of
banking and exchange business
Trusteeships
and Executorships
also undertaken
7
iVolume 163
Number 4454
THE
nize this
government. It is for us
to say
whether the terms
have
been complied
with,
The situation * in
Bulgaria
complicated by the fact
that
election
has
Government
which
the
Government
;
election
has
taken to advise the
new
The Allied Council for Japan
not
now
included.
tnat
this
they
as
new
General. MacArthur
Bulgarian Gov¬
ernment.
preme'Allied
Council
The agreements
•
mania
I
am
as
with
regarding Ru¬
Bulgaria do not go as
and
far
improvement
democratic character
governments.
peace.
questions ■;I
lies
is
an
policy.".
While
with
essential
If
*■■■:';%
the i; United
tained
the
of
Al¬
its
ered the war
against Japan
a
Commission.
I
as
have
responsibility.
objectives of
Declaration
and'
which
he
tional
the
Soviet Union requested
decision
regarding control ma¬
~ \
he
plan for
1 Far
has
control
At
•*.
Moscow
the
with
China,
agreed
the
ap¬
three
on
govern¬
Far
a
'Council
Eastern
Great Britain,.
China, the United
States, France, Netherlands, Aus¬
This
;
Will
Far
Canada,
•
Eastern
Commission
have
the authority to for¬
principles to govern the
of Japan.
It will act by
mulate
control
a
-
Zealand,
Philippines.
majority vote, which,
however,
must
include the
of Great
concurring votes
Britain, the Soviet Union,
China and the United
States. The
decisions of the
commission will
be incorporated into
directives To
the supreme,
jcommander by the
United States
Government;
Under
>
the-
agreement
A?-lng
commission
Allied policy for
Japan
adopted without
our
basic
no
may
be
concurrence.
statement
need
we
the
in
case
General
:
Far
of
free to give
interim
all urgent
matters.
Only three questions are
excepted
from our
authority to give interim
directives. The questions
on
reserved
for action
by the commission—
which action
requires our concur¬
.
rence—are
questions dealing with
changes in the control of
Japan as
set
forth
in
the
surrender
with
or
terms
fundamental changes in
the Japanese
constitutional struc¬
ture
ese
-
or
with
changes in the Japan¬
Government as a whole.
These
their
are
nature
questions
which
by
require
agreement
among the principal Allies if
there
is to be a
common Allied
To
reserve
them
for
policy.
by
decision
the commission does
not affect the
administration of Allied
control
by the supreme commander.
It
has
dictate
not
been
changes
in
our
policy
tne
civil
rightful' place
and
its
among
Allies
discharge properly its inter¬
national responsibilities.
^
Our policy toward China
cently
announced
Truman
was
We find
as
President
discussed at Moscow.
our
Allies in substantial'
(Continued
on
page
144)
to
Japanese
TEN ROCKEFELLER PLAZA
CONDENSED STATEMENT OF CONDITION
ASSETS
was
•
!
ap-
Chief
MacArthur,
he would remain
as
Customers*
>1
which
General
was
radio
MacArthur
made
as
of
■;
V
■
\
:
'.
...
2,173,672.82
<>
.V
'V
9,895,342.61
General Reserve.
...
Dividend
•
|
Reserve for 'Taxes and Other
a
broadcast from Tokyo and
i
Deposits.
the American Broadcasting Com¬
600,000.00
"
*...........
Liabilities..;.............
am
here to
or
and
serve
obstruct
-
5,720,680.27
not
$951,445,924*^58
h
/
to
;
American
the
966,436.38
881,263,465.32
.v.
...
regarding the commander's
pany
supposed intentions regarding the
3,000,000.00
Payable January 2, 1946...............,,,...
Acceptances..............................
•
7
'■
$59,895,342.61
,
,
:
■
35,000,000.00
Undivided Profits.
//
jv
r
,
$15,000,000.00
Surplus
J
*
V.
>
LIABILITIES
Capital...:......
re-
result
a
to
->•?
16,782.29
730,550.40
.
v
however,
the assertion
it through.'"
795,967.37
*
Interest Receivable and Other Assets
1;
"As I said
18,562,797.49
233,991,370.51
............................
Liability for Acceptances,..................
(
before, it is 'my full purpose^ to
see
.
.
Mortgages.
Equities in Real Estate... *
in¬
lied Commander and would try to
455,939,526.25
Real Estate Bonds and
j1*
Supreme Al-
make the plan work.
I.. $239,23 5,257.45
Securities...'...U...........i........
loans and Discounts....
i:J
was
Other Bonds and
'•
'
'
,
;United States Government Obligations.................
made there/'
■< were
DECEMBER 3!, 1945
''
United States Government
obligations carried
i
"
at $186,281,147.64 in the above statement are
United Stares Government deposits of $177,193,533.87 and other
public and
deposits and for other purposes required by law.
*
pledged
Government."
trust
;
to secure
v.-
i
,
On Dec. 31,
following the above f.
MacArthur,
held a press
statement by General
.
Secretary / Byrnes
\.0: TRUSTEES
conference in which he is reported
to have said that he had understood
that
MacArthur
v
considered
W
MALCOLM P. ALDRICH
New York
plan for Allied control of
Japan to be acceptable before it
was
submitted to the Big Three
at the
Moscow Conference.
Sec-
V:
Colt's Patent Fire Arms
1
retary Byrnes also pointed out
by way of acknowledgement,, that
the Moscow negotiations resulted
in tne clause which gives
Britain and China as well
United
States
a
veto
ARTHUR
as
directive dealing with funda¬
mental changes in Japanese constructure
or
the United
that
States
changes that
the
may
this
a
'".V
-
'
:
President, National Distillers
Products Corporation
ROBERT C. REAM
American Re-Insurance Co.
'•.;yPresident
:
Refining Company
'/M''s/'-y
ADRIAN M.
Member
•
MORRIS SAYRE
President
Corn Products
BREWSTER JENNINGS
MASSIE
Vice-President
be proposed in
existing authority of General
.:
.
Company
of Federal Deposit Insurance Corporation
Refining Co.
CHARLES J. STEWART
President, So cony -Vacuum Oil Co., Inc.
WILLIAM F. CUTLER
New York
SETON PORTER
Executive Vice-President
American Brake Shoe
Company
any
,
Litchfield, Conn.
The National Sugar
Vice-President
gives
on
*
.
WILLIAM HALE HARKNESS
New York
B.
••;>
v
HORACE HAVEMEYER, JR.
Cook, Lehman,
Goldmark & Loeh
>
MacArthur.
•
.•
matters
still
veto
■
,
relating to Allied control, but he
maintained
;
ALFRED A. COOK
any
stitutional
v
President
the
New York
HARRY T. PETERS
SAMUEL H. FISHER
.
over
HOWARD W. MAXWELL
'
Chairman of the Board
United States Rubber
BALLANTINE
JOHN E. BIERWIRTH
S.t DAMON I
FRANCIS B. DAVIS, JR.
"
Mfg. Co.
Root, Clark, Buckner & Ballantine
Russia,
power
A.
RALPH
American Airlines, Inc.
GRAHAM
H.# ANTHONY
President
"y
,
President
the
Vice-President
,
re¬
by
v
thai, despite his opposition, f
added
"I
are
directives
it
might imply that I
cisions which
hinder
in
by
BROADWAY
Cash and Due from Banks
consulted during the Moscow conference is also incorrect. I have no
iota of responsibility for the de-
Directives
Pending agreement
Eastern
Commission,
before
Russians, and it said in part:
U. S. Free to Give
Interim
,
divided
to
of Staff for the Secretary of State
advising that the terms (in my '■
opinion are not acceptable/ Since 1
that time my views have not been >
sought. Any impression which the j
ferred
estab-
plan
contained in my radio to the
of-
Commission. It will consist of
rep¬
resentatives of the Soviet
Union,
tralia,
New
India and the
China
strife will not be able to take its
our
MADISON AVENUE AND 40th STREET
proved at Moscow' is incorrect* Qri U:
Oct. 31 my final disagreement was
,
concurrence
It is
interna¬
an
Eastern
IOO
in
statement
a
that
Far Eastern Commission officer/' i
Gen. MacArthur stated/, "that I
'did not object to the new Japan
the work of the
commission.
ments,
The Unification of China
But
Company
uThe statement attributed to the
y,
chinery in Tokyo before
joining
Eastern Commission
trusteeship.
Korean pro¬
on
the
Far
'
The joint Soviet-American com¬
mission, working with the Korean
provisional * democratic ' govern¬
ment, may find it possible to dis¬
a
-y
formulate policies for Japan, but,
the
contrary, hadI informed
Advisory Commission Secretary Byrnes sixJweekfi be- ■
was
established in October, but' fore the Moscow meeting/that in
Great Britain had
reservations re¬ his opinion the plan urns not ac¬
'
garding its
advisory character ceptable.
a
.
of
visional national government and
in any trusteeship for Kor£a.
But when necessary,
denies
the
proved
the
terms of surrender for
Japan. The
Far Eastern
and
re¬
Council
clarification of
the Far Eastern
Pacific, has issued
invited
the
Potsdam
governments
to prepare Korea for its inde¬
pendence within five years.
pense with a
in the formation of
pro¬
four-power trusteeship
the
a
Program
Soviet Union, Great
Britain
and China to
join with us in car¬
out
The
-
to
these
participate in
were
China is
Foreign Ministers, the Far East¬
ern
Commission, in the FourPower Allied Council in Tokyo,
govern¬
They will also make
It is reported from Tokyo that
General Douglas MacArthur, Su¬
preme Allied Commander1 in the
the
rying
areas.
continuation of this division after
China
MacArthur Opposed
part
.
we
recom¬
governments
United States, the Soviet
Union, Great Britain and China
for. the formation of a Korean
a
of
already explained, the
war
As early as
Aug. 20
the
posals
was
American
to
the
garding
interests
in
against the Axis. From
outset we have
planned to
make the control of
Japan an Al¬
lied
the
pending
by
decision
crushing the military power of
Japan, we have always consid¬
of the
;;
and
They will make
mendations
of
the
taken into full account*.
to
ican commission to solve
imme¬
diate economic and
administrative
problems.
cow
joint Soviet-Amer¬
of these three points the su¬
commander will withhold
action
sus¬
burden
viet
a
ment.'
divided north
and south of Latitude 38 into So¬
just
:;C.•
Korea
Mos¬
military commands
provisional. democratic
a
of
to form
are
-
at
preme
.
States
major
tion
re¬
have
MacArthur
nation-wide scale
any;,
any
that
,
-v:*•••
the three
*
the two
will become
functioning of pub¬
on a
has been hampered.
'
Under our agreement
cow,
goal to hasten the day when Korea
an independent mem¬
ber of the Society of Nations.
In the various agreements and
understandings reached in Mos¬
and
persons
the Far Eastern Commission upon
our
our
part
'
all but
General
exe¬
trying problem since the
Japan. For purposes
of military operation the
occupa¬
sur¬
lic services
unsatisfactory.
of
disagreement arises in
the Council regarding the imple¬
mentation of a policy decision of
creation of
for lasting
make
of
on
mentioned.'
?
Cooperation
terms
the
and
up
surrender of
commander in
out
trolling
The Far East
that
supreme
by
set
The administration of Korea has
been
The
consult
and
'
:
His decision will be con¬
-
conditions
commander.
advise
to
outstanding and efficient
Korea
su¬
served
of these
In the Far East it
has been
policy to work for the
the
the
as
render.
in
v>
is
carrying
should have
liked, but I
hopeful that they will
result
a
snbstantial
the
should not be obstructed.
that the
Union, the British Com¬
monwealth, China and the United
States under the chairmanship of
has been done
they will
recognize the
cuted
Soviet
satisfied
are
administration
composed of representatives of the
Government and
the
American Government
have stated
soon
also
governments
with the concurrence of
China, on the establishment of an
Allied Council for Japan to be
agreed,
The
-British
three
The
to include in the
gov¬
two members
truly rep¬
the Allied Council to
agree upon
the methods of
carrying them out.
We were determined to assure
movement
goods and the
v
MacArthur will not be
obstructed by the
inability of the
Far Eastern Commission to
agree
on policies or
by the inability of
r
surrender has been
The
authority of
General
commander to act remains
,
fill vacancies.
or
It assures that the
the
under¬
resentative of important
political
parties
isters
to fill vacancies created by
unimpaired,
Bulgarian
Government
ernment
the
in
preme
"Nevertheless,
ooviet
changes
supreme commander, after
appro¬
priate consultation with the Coun¬
cil, may change individual min¬
resignation
of
individual
members the authority of the su¬
free
a
or
the
in
make
Cabi¬
and
Govern¬
Soviet
regards as
and we do
not.
net
whole,
a
occurred
already
ment
is
an
as
it is necessary to
as
individual
i
there
far
so
COMMERCIAL & FINANCIAL CHRONICLE
VANDERBILT WEBB
New York
*
J
*
''
5
'' '
Thursday, January 10, 1946
FINANCIAL CHRONICLE
THE COMMERCIAL &
•'
144
problem.
But I am not discour¬
aged.
I hope that the exchange
of views may lead to further con¬
sideration of the grave issues in¬
its recommem
ernment to act on
143),
(Continued from page
dations.
policy. The three
accord with that
The
four
Britain to Reduce
Moscow Accord
Byrnes Explains
objectives
forth
set
governments agreed that the ces¬ in the
proposed resolution estab¬
sation of civil strife and broad
volved and out of such considera¬
lishing the commission . are not
participation throughout the na¬ intended to indicate the order in tion a solution may be found.
tional government of democratic
There- was
no
subject as to
which they are to be considered,
elements are necessary to assure
which an agreement was reached
in particular, it was intended and
a unified, peaceful and democratic
that was not covered in the com¬
is understood that the matter of
China under the national govern¬
munique published Friday, apart
safeguards will apply to the rec¬
ment. The three governments re¬
from
instructions to the repre¬
ommendations of the commissipn
affirmed adherence to the policy
sentatives of the three govern¬
in relation to every phase of the
of non-interference in the internal
ments to facilitate agreements in
Subject and at every stage.
In¬
affairs of China.
'
A
the field.
deed, at the root of the whole
The agreements reached should
Mr.
Molotov and I discussed
matter lies the problem of pro¬
the problem of Soviet and -Amer¬
bring hope to the war-weary peo¬
viding the necessary safeguards.
ican armed forces in China.
The
ple of many lands.
They will
facilitate
the
Won't Share Secrets Now
Soviet Union, pursuant to their
signing of peace
which is«necessary to
agreement with the national gov¬
Neither we nor any other na¬ treaties,
Controls
(Continued from first page)
thanks to the
censorship that had
enabled the authorities to obtain
during
the
existence
war,
to
of
information
the
Now
that
censor¬
the
reason
Washington Financial Agreehas made it necessary for
the
Government
new
to
/
'
.
-
this
assume
Under that Agree¬
function.
restric¬
transactions
months. Other countries '
ment Britain is to remove
evaders, but it is
under
that
hoped
Exchange
why
Forward
ment
ship has been abolished it will be
much
more
difficult to keep a
watchful eye on
'
•
•
another
is
There
applied indiscriminately to both
capital transfers and current trade
transactions.
of
Guarantee
and
evasion,
about
also thanks to the fact that it was
for
exporters
and
importers
such purposes.
tions
on
within 12
Bretton
system the member Gov¬
ernments will collaborate in pre¬
Woods
will
be
current
however, under
entitled,
Woods plan, to defer-..*
the Bretton
venting unauthorized export and for five years the removal of.
their exchange restrictions. As is
■■-/ri.*';'
permit the withdrawal of troops accumulation of capital.
from occupied territories.
well-known, it is very difficult if
Only
Problem of Restrictions on Capital not
impossible to secure private
by the withdrawal of armies of
Transfers ' '
futures exchange facilities in cur¬
occupation can the people have
rencies
which
are
under strict
an
The problem which the Treas¬
opportunity -'to- start on the j
mutual protection.
'I
long road to economic recovery. ury will have to tackle before exchange control. While exchange
The Soviet Government offered
Only by economic recovery of sterling is made convertible for control remains in operation in
only a few amendments to the
the purposes of current trade re¬
other countries can we in Amer¬
Britain, the Bank
of , England
:
proposal submitted by us. These
amendments
were
designed;'; to ica hope for the full employment quirements is to make the re¬ bought and sold forward
of our labor and our capital in strictions on capital transfers rea¬
changes at fixed premiums or dis¬
clarify the relations of the com¬
this interdependent world. • A
sonably watertight in spite of the counts. Once control is removed
;;
mission to the Security Council.
removal of restrictions on current as far as commercial transactions
! :
With some revisions we accepted
Limits of Conferences
r
trade transactions. This task is by are concerned, these facilities will
them.
0
AWe must realize that interna¬ no means "easy, and expert opin¬ cease. And since private interests
Carefully e.x a mined, these
tional
conferences
are
not in¬ ion is sharply divided on whether may not be able to buy and sell
amendments will be found to go
it is possible at all.
tended to give individual states¬
The view is for future delivery any currencies
no
farther than appropriate to
men
the opportunity to achieve held in many quarters that, once which remain under; control, it
enable
the Security Council to
They are dealing in exchanges is free for will be necessary for the author¬
exercise its primary responsibility diplomaticsuccesses.
re¬
ities
to
intended to be useful in the ad¬ current trade requirements,
supplement this defifor the maintenance of peace and
strictions on capital transfers will
ciency.
v'■%:
security.
J
\ ' : justment of delicate social and
Details of the proposed facil- ,■ .
inevitably leak like a sieve. Ex¬
The Security Council can give human relations between States
1
with many common interests and perience only will show whether ities have not yet been worked
directions to the commission, and
A . this view is justified. Meanwhile out. Such information as is avail-;
restrain
publication of reports many divergent interests^ A
the Treasury and Bank of Eng¬
able about the Treasury's inten¬
In international affairs, as in
:
ernment of China, plans to remove
expected to share
our armament secrets until it was
certain that effective safeguards
had been developed to insure our
Manchuria .by Feb.
our Marines
from North China when Japanese
troops are disarmed and deported
from China or when China is able
to complete
the task unassisted
its forces from
We
1.
will
move
by us..v/
The understanding of the three
powers as to
policy toward China
Marshall in
Should assist General
has undertaken.
the mission he
Control of Atomic Bomb
to
Moscow
with
proposal for the
very
a
definite
establishment by
Nations of a commis¬
atomic energy and related
the United
sion on
Washington
declaration
of the President of
the United States and the Prime
Ministers
of
Great Britain and
Canada on that subject.
At the
matters based on the
request of the Soviet Government
the discussion of our proposal was
placed at the end of our
be
.
ourselves came
The British and
would
tion
agenda.
,
,
detrimental to peace and
but such action can be
with
the
concurrence
oermanent
members.
security,
national affairs,
taken only
of all its
Failure of
ests
be
can
.
conflicting inter¬
by
reconciled, only
discussion
frank
better
and
un¬
land
experts are doing their best
discussions
this proposal.
v
..
.
and also be¬
inclined to
inflict the minimum penalties on
this
For
cause
reason,
Law Courts are
likely to increase materially
severity of penalties.
Bank
National
Mellon
a
'
statement of condition
,
december
31.
hundred
„: j
business
at the close of
nineteen
forty-five
.
•
'
changed
requirements. Under the Bretton
exchange control to the
Woods
A
Cash and Due from Banks
1 37.2 1 5.9 1 4.15
Other Bonds
.
Investments.
.
Loans and Discounts
Banking Premises
.
.
Capital/ \
.
426.697.456.4 1
$
.
U.S. Government Securities
and
LIABILITIES
RESOURCES
Surplus
A,
Undivided
34.494.606.31
2.466.703.70
Reserves
Deposits
37.500.000.00
exchange facilities in
with the
ment
Profits.
1 2.530,939.19
.
4.071,470.60
,
.
.
1.628.789.23
1
.
.
552.705.359.93
.
$61 3.405.6 1
$6 1 3.405.6 1 9.76
it will
be
neces¬
for the Government to inter¬
vene in order to provide forward
sary
7.500.000.00
$
♦
.
system
9.76
on
accordance
provisions of the Agree¬
the International Mone¬
tary Fund, according to which
forward exchange rates must be
kept
within limits to be deter¬
by the Fund.
Now it is
j.
blackmore
frederic
arthur
v.
davis
frick
childs
william
b. given. jr.
henry j.
harry
byers
b.
heinz ii
roy a.
henry
Should
limits.
confine
itself
yond the limits the result would
be that merchants would be de¬
phillips
a.
be¬
charles lockhart
william
c.
robinson
prived of the means of covering
the exchange risk with the aid of
richard k.
william
m.
robinson
futures exchange
benjamin
william
l.
f. jones
david
iii
mellon
alan
mellon
a.
m.
reed
scaife
william p.snyder.
lawrence n. murray
curtis
higgins
the official
Government
simply to prohibiting dealings
hunt
m.
yohe
jr.
operations. This
would be detrimental to
trade.
Hence the necessity of providing
official forward exchange facil¬
ities
when
mate
law
private
initiative
is
covering legiti¬
requirements. The projected
prevented
will
from
authorize
ment to guarantee
mm
had
under-;,
to
'
public works spreading over
years had to run grave risks, and
in
many
suffered
known instances they
losses. But even
severe
the facilities to
risks were at
times most unsatisfactory- When¬
ever a currency is expected to be
devalued, the discount on the forshort periods
for
'
exchange
cover
;
,/
exchange rose to a prohibitive level. Exporters who had to;'
ward
against
such
a currency
;
payment in
future
sell
,
had either to sac¬
rifice most of their
profit by cov-
ering themselves against exchange
risk at an exorbitant cost, or they
to
grave
a
run
'
risk, or they
simply had to abstain from doing
business. It is hoped in business
circles that under the new Bill
f/■:
j
the
Govern¬
exchange rates
.
,,.
,
will guarantee
against exchange risks
Government
the
merchants
for any
;
reasonable period and at a
reasonable cost.
;
;.
(
<
IN. Courts and J. Glenn
Return to Courts &
Co.
Malon C.
Commander,
U.S.N.R., and Jack F. Glenn, Lieu¬
tenant, U.S.N.R., have been re-•
ATLANTA,
GA.
Courts,
Lieutenant
—
leased from active duty
and have
partners in Courts & Co., 11 Marietta Street, N. W., members of the;
New York Stock Exchange
•
Mr. Courts served as Flag Lieu^
the
a.
-
<
take
possible, and even probable, that
on
various occasions the forward
yond
george
who
Contractors
resumed
be¬
;
against
months.;
mined
exchange rates will tend to go
DIRECTORS
to secure cover
exchange risk beyond six
possible
had
4 The title of the new Bill will
be, according to present advices,
the Exchange Control and Guar¬
antee Bill.
As the word "Guar¬
antee" indicates, the measure will
not be confined to the adaption of
PITTSBURGH
r
is
the
Government
the
offenders,
welcomed, however, in
For it is
City.
To that end a Bill is now under
^
the
admitted that the . / ;
guaranteeing of exchange risks is
,
one of the spheres in which Gov¬
ernment intervention to supple-. ;;
ment private initiative is justified. ; {
Even before the war, the forward
exchange facilities provided by
private initiative were far from
adequate.
It was practically im- v
tion is
the expected loopholes.
to stop
were limited to
derstanding. The meeting in Mos¬ preparation, and is expected to
the Security Council to act can¬
At no time did we not block the work of the commis- cow did serve to bring about bet¬ be introduced sometime in Febru¬
discuss any technical or. scien¬
ter. undemanding. *We must not ary or March.
Under it some
^
0, ■ vVVA}tific matters, nor were we asked' sfon. ■ v i A
in
our
efforts. A With form oftqheck will be kept on cur¬
The
three
governments have slacken
by the Soviet Government about
rent trade: transactions, in order
invited France, China and Canada patience, goodwill, and tolerance
the new weapon.
I was happy to
to prevent their abuse for capital
to join with us in submitting the we must strive to build and main¬
find that the Soviet Government
transfers. How this check will be
tain a just and enduring peace.
proposed .resolution to the Assem¬
feels as we do that this particular
effected without interfering with
bly of the United Nations.
weapon is of such a revolutionary
the freedom of dealing remains
Fahnestock Co. Opens
nature
that we should explore
Failure to Agree On Iran
to be seen.
Another object of the
through a United Nations commis¬
new
measure
is to reinforce the
Branch in Meriden
A !! (
The Foreign Ministers reached
sion methods of international tonunderstanding on all important
MERIDEN, CONN.—Fahnestock penalties against evaders of ex¬
trol.
■;
V
change restrictions. This is con¬
items on our agenda, with the ex¬ & Co., members of the New York
It
should
be understood
that
ception of Iran.
At one time it Stock Exchange, announce the sidered necessary partly because
the task of the commission is to
under the new system it will be
looked as if we might agree on a
opening of an office at 45 Colony
inquire into the problems raised
easier to evade the control, and
triparite commission to consider Street, Under the management of
by the discovery of atomic energy Iranian
problems which have been Harold P. Thomas.: •I Other Con¬ partly because in any case the
and related matters and to make
same patriotic reasons which pre¬
accentuated by thei presence of Al¬
necticut offices of the firm are in
recommendations. Neither the Se¬ lied
vented many people from break¬
troops in Iran. Unfortunately,
New Haven, Torrington, Watering the law no longer operate to
curity Council nor the commission we could not agree. I do not wish
bury, Hartford and Danbury.
anything like the same extent.
has authority to bind any gov¬ to minimize the seriousness of the
Our
/
tenant
duties
their
as
general
,
Vice-Admiral Louis E.
command of
to
Denfeld who was in
Battleship Division No. 9
ing
the
included
and
the
U. S. S.
Missouri.
sequently, Mr. Courts was
Admiral
was
operat¬
This division
U. S. S. Wisconsin
in the Pacific.
Sub¬
aide tori
Denfeld when the latter
Chief
of
Bureau
of
Naval
Personnel.
Mr.
Glenn
Navigator
on
served as Assistant
the U. S.S. Wash-
ington operating
in the Pacific.
<
,
v
(Volume 163
THE COMMERCIAL
Number 4454
A Democratic
the
But he has chosen to lonow
CIO-PAC
course
on
every
economic measure except
fact-finding
has chosen the
public
Half
to
and
Federal
the
of unlimited
course
spending
power
the last
proposal.
He
labor
increased
bureaucracies.
Democrats
and
of
most
the
Republicans in Congress dis¬
agree with that course.
What
-
are
the
by this conflict?
dent
wants
affected
measures
to
First, the Presi¬
Federalize
unem¬
sion
and
the
becomes
medical profes¬
in
effect
Govern¬
ment
President
bill.-
It
contained
communist
hibits
proposal?
When it
to
real
For
period,
it
local
to
the President
admits
there
is
of
lack
work
ployment
compensation
to ,$25
is
co¬
proceeding rapidly,
but
that these
Compensation
should be
The
by the
run
President
Bureaus
same agency.
is
trying to Fed¬
eralize the whole outfit,? and in
effect give left wing labor control
of employment.
Congress insists
on
State control.
certainly
Events also have
proved
that
Congress
right in not further increas¬
ing these rates in October.
was
!
t
Communistic
;
Second,
mended
the
President
so-called "Full
a
ment" Bill.
recom¬
Employ¬
The President
he could do with it, but he tried
to put Congress on record in favor
of the Henry Wallace
compen¬
satory spending theory/ requiring
the President to submit vast
pro¬
grams for the
expenditure of Federal'money whenever some crack¬
pot
economists
thought
there
be
proposal
unemployment.The
came
directly from the
the President has made
other
recommendations
many
without
that he
cost
the
slightest
enough money
pay for them.
More Federal buildings — Federal
grants for every kind of local
raised
public
works
control
of
the
prices
and
many
—
Missouri
Valley
tumbled
into
from the Presidential
Two
billion
a
Con¬
cornu¬
tinue
controls
over v a
number of scarce articles
limited
beyond
Problem
Should
there
one-half
billion
for
the
be
<
Ex¬
one-
in favor
such
the
pro¬
made?
Should
they
of
calculated
what
this
is
considered,
a
it
which
adopts a philosophy
the people do not
Hosford Gives Fund
for School Stadium
then
CLEWLAND, OHIO — Harfy
Hosford,
Cleveland
investment
prohibiting
banker,
preserve
I
do
believe
we
im¬
can
believe
be
of
strikes
mittee
day
of
means
not
Congress Alone,
the
Senate
return
meets
which faces
today,
the
I
President's
the
with
agree
that
suggestion
his
faith
in
the
such
be without
purpose."
:
/'.
Hosford, who formed his
own investment banking business*
in 1916, gained attention in 1943
when his war bond purchases to¬
a
..
the
Con¬
talled
$32,000,000.
all
huge deficit,
a
future
.Mr.
going to cost, what the total post¬
war
budget of the Government
can
other
as
financing the project did
available, he was willing'
country and in the young
people by donating $100,000 for
domestic economy
our
seem
"back
to
to
fully
of
of the
Washington to
begin hearings on the most seri¬
ous
and
complicated
problem
we
democracy in the future."
The financier stated that
effectively prohibited.
to
a
Cleveland
both sides.
on
kinds
some
308
donated
of conciliation
the principle of
half billion for UNRRA; four bil¬
lion two hundred million for the
British,
But the President
has
never
a
the process
It's Up
be
:give
not
because
i The Education and Labor Com¬
which
shall
and prices,
strengthen
can
recom¬
on
ill
CIO-PAC program
Democratic prograni,
prohibiting violence
and
questions
on
agrees.
If a fact¬
principles
and
a
collective bargaining by imposing
responsibility on both parties and
I
recommendations
found
because it is
Euclid Avenue, has
$100,000 stadium for the
Heights High School, to
be dedicated to the youth of tM
suburb "who fought to preserve
democracy and who will work to
But
prove
mendations, should Congress not
declare
superficial
and
strikes..,..
legal
one
not
am
hibition of strikes and, if so, what
should the penalty be? These are
no
is
wage
wages
any
a
without
has
one
I
1
such
no
fixing of
Requires Careful
Consideration
has been delayed because it
gram
arbitration, which
inevitably to a Government
leads
it, for he
finding body is to make
for
year,
compulsory military training; six
billion for Bretton
Woods; three
i.
■
oi
where the money is coming from
Doesn't it occur to ]>■. you
that
FIFTH AVE. OFFICE
Congress ought to get credit for a
little delay, instead of being sub¬
to a barrage of letters;; and
telegrams?
,1,7*0,;
MAIN OFFICE
Fifth Ave.
140
44th St.
at
LONDON
MADISON AVE. OFFICE
;
Madison Ave, at 60th St*
Broadway
PARIS
*
BRUSSELS
♦
ject
These
measures
CIO-PAC
;'
repres^ftf'o
program.
They
<
.Jwm Condensed Statement of Condition, December 31* IMS.r;
V';iv
a
more
Federal power and
spending. ;;; The
definitely aligned
has
himself
I
in
Party.
That
is
the
Banks and Bankers
U. S. Government Obligations
and
the
Loans and Bills Purchased
the
representatives
people
of
the
;
the
people
in
Whole Philosophy Changed
President
Truman
changed
his
Public Securities
1939, when
he
Legislature:
after
soon
a
study of
"I
I
1
on
the
found
had
Credits Granted
to
Missouri
out
settled
.
.
.'
^
'V'.V Z:'h'
.
,
.
.
.
.
.
.
.
.
,
.
Receivable
*
.
.
.
.
.
.
Real Estate Bonds and
.
$
.
.
.
7,800,000.00
,
.
19,056,995.34
2,702,679.85
.
;'
,
....
...
11,960,826.86
1,592,633.50
.
.
*
,
r;-.
r
z,,
•
■
■
-
X26,867,586.75 '
140,OOf,
very
down
to
duties that the busi¬
ness of a good
legislator is not to
get things done quickly, as a good
my
'IBank
:
Buildings
r
Other Real Estate
/
?'
- v
-
.
Mortgages
/
.
....
,
Acceptances
on
;
.....
.
.
..
.
.
,
Accrued Interest and Accounts
*
■
-
65.7,605,517.44
2,059,320,457.25
;*
960,041,680.13
$
83,754,451.20
.
.
philos¬
March 21,
United States Sen¬
as
addressed
.
,
Stock of the Federal Reserve Bank
Other Securities and Obligations
whole
ophy since he said
ator
seems .;
t
.
.
Congress disagree with him.
have
5x\<\
RESOURCES
s
group
that
V'
V
Hand, in Federal Reserve Bank, and Due from B
on
that
with
Democratic
-
■■
' are
Federal
on
President
many months to come,"
objects to the fact that we
only continued the second War
Powers Act until, July 1, 1946.
Congress disagrees. It believes in
eliminating Federal control over
prices and priorities at the earliest
possible moment as a necessary
step to reconversion and prosper¬
ity. It may be necessary to con¬
of
Labor
rent ::for
and
in
has
agree.
pulsory
out, as being anti-labor,
which
copia.
teeth
question
President
To summarize, the Truman pro¬
settle
way to prevent strikes, except Mr.
Stalin.
If you can only prevent
night to all other
pending in Congress,
them carefully, worked
ways—have
gress
to
:
can't
with
last
measures
complicated
reason
Third, the President favors
with
opposed
You
of
strikes by a general plan of com¬
justice. But the President
to
.
Controls
re¬
slap on the
discredits
a
simply
apparently
Authorities—St. Lawrence Water¬
based
continued
evidence
whether
or
more•
.
is
penalty is
a
which
kind
strikes, and
General
President's
operators?
which the
advanced.
hearings and the most
careful study.
One thing is certain. The Pres¬
ident's
bill
will
not
prevent
how much they will
cares
be
can
Soviet
Congress Favors Lifting Wartime
the
gesture
to his
more
complete
refused to return
the
on
referred
Fifth,
ist
Constitution, the Commun¬
Platform, and from the CIO.
Congress disagreed.
;
Since
measure
do
can
everything without this bill which
might
cost.
port-Import Bank; two and
Full Employment Bill
r
principles of
Truman Indifferent to Costs
and
^
sound
on
control and reasonable
a
offices and the Unem¬
ployment
kind
local
originality, to give
that
penalty
without
He vetoed the
act to reduce Federal
expenses by
returning the employment offices
to the States.
Every one admits
no
lation
bill increasing all unem¬
week for 26 weeks.
any
gress should work out its own
labor measures, and I believe that
it should discard the rather futile
workmen than stupid and ineffici¬
quest, why should they do so on
what is merely a request
by Con¬
gress?
To
prohibit
something
no
law and
a
or
operation. The Senate passed the
Hospital Aid Bill. Housing legis¬
this
enact
imposes
Motors strikers
ployment compensation. As
a step
direction, he tried under
to get Congress to
and
ent
whatever.
governments,
fact-finding
instance, although it pro¬
strikes during a
cooling-off
in
pressure
no
legisla¬
tion
to
improve social welfare
through Federal aid to States and
comes
a
hastily drawn
principles of
145
President
and
his
boards
un¬
limited power, for instance, to re-,
quire the man who is successful
because of efficiency, hard work,
kind.
wrist
that
submits
was
employees. Can anyone be
surprised that there is some de¬
lay in enacting such a left wing
it takes time to work out laws of
CIO
FINANCIAL CHRONICLE
Party Family Fight
ernment
(Continued from page 122)
turn.
&
.
.
.
..
.
.
v
.
...
.
'
'\.
.
...
Total Resources
z*:1iZ!Vz >Z^zszZi'-Z'; ZY:%®;ZlZ' Z»,526, 331.19
...
Y
.
.
.
'
.
.
.
.
...
,
.
'
/
_
.
.
.
.
.
145,468.86
.
.
.13,813,507,041.62:
"
-
145.
.
/
"
-
•
July 1, but this
strictly limited.
r
should be
power
inflation,
vgreatest
is
promoting
peacetime
country
has
inflation
the
this
seen,5 first by
of Government
money, and second by promoting
a
general increase in wages and
lavish
ever
spending
salaries.
All
the price control in
the world can't hold prices
against
those policies.
The President has
adopted the ridiculous CIO theory
that
you
crease
crease
ing
a
men^
a
general
in¬
in
wages,
a
general in¬
in Government
pay includ¬
100% increase for Congress¬
an
88%
increase in
the
minimum
hold
have
can
wage
prices.
scale, and still
The necessary effect
is first to stifle
reconversion, then
prices far above even the
present level. Congress disagrees.
boost
Health
Program Is Socialized
Medicine
Fourth,
mends
the
the
President
Federal
old
health
insurance,
Murray-Wagner-Dingell
Washington from
Nation's
wage
earners
and
used to pay all the doctors in the
It
is
not
socialized
you
can
It
choose
is socialized
your
said
that
medicine
your
own
this
is
because
doctor.
medicine, because
doctor is paid
but
to
liberation
study on all
legislation is a great
pro¬
posed
deal
better for the public welfare than
too
much
:
of
hostilities.
continued
draft
of
That
men
any
the
means
for
a
At
first,
the
no one was released from
Armed
Total
Now
they
being released in floods, with¬
well-thought-out plan for
turning the vast war army into a
for
the
peacetime
army
of
million men, volunteers
job. The Administration
a
has blocked any attempt even to
return
fathers from, the Armed
Services.
•
The
only serious charge of de¬
lay against Congress relates to
labor
legislation.
Ever
since
I
have been in
every
ing
attempt
labor
to
enact
compre¬
legislation, includ¬
bill which Senator Ball and
I urged at the time of
Pearl Har¬
bor.
every
Suddenly
on
Dec.
3,
legislative
channel
year-end
legislation,
■<
with
.
$
.
.....
90,000,000.00
170,000,000.00
52,676,254.64
.
.
.
.
#
.
.
Less: Own
.
3,309,452,507.15
I.
*
....
.
.
.
.
.
.
*
.
^
.
.
.
,
.
.
$
Acceptances Held for
.
,
,
z.
.
.
:v;
Z"Z
5,071,793.16
$
.....
.
Items in Transit with
.
2,702,679.85
170,859.00
.
.
.
v? ■'
2,700,000.00
Foreign Branches
(and Nejt Difference in Balances between Offices Due
Different Statement Date of
Foreign Branches)
Payable, Reserve
Taxes, etc. :
.
for
...
2,115,243.88,
Ex¬
.
.
.
,
;
,
'
27,971,476.48
35,660,259.21
Total Liabilities
Securities carried
powers, to secure
.
.
.
,
;
.
i
«
i
« >w,-nrh«»)
•*
*
.....
.
$3,813,507,041.62
at $1,094,870,040.30 in the above Statement are
pledged to qualify for fiduciary
public moneys as required by law, to secure Bills Payable, and for other purposes.
resources
and liabilities of the
of December 26, 1945.
>
f
.
.
This Statement includes the
as
ZrvZr-:.
120,000,000.00
zz-z'zl;,
Liability as Endorser on Acceptances
and Foreign Bills.
Dividend Payable January 2, 1946
penses,
«
7,774,473.01
Investment
Accounts
.
47,913,255.52
Outstanding
;
.
.
!'
312,676,254.6*
$3,261,539,251.63
.
'
;:'p,
:% 35,718,020.62
.
Deposits
Payable.
Acceptances
,
.
.
Bills
packed
* the'
.
.
Total
Congress, the Demo¬
a
...
.
Treasurer's Checks
cratic Administration has blocked
hensive
.
.
Contingency Reserve.
Deposits
out any
coordinated
.
.
.
.
,'-'Z"*IzZy^-zl';Z'^:'^'"
Z'--Z;
Capital Funds
.
Services.
are
perhaps
.
Undivided Profits.
mil¬
itary service in peacetime.
Here
again he is hanging on to power.
....
.
General
The President has opposed
declaration by Congress of
end
'anifal
Capital
Surplus Fund
hurried and immediate
action."
by the-Gov¬ •with
meas¬
and
|
LIAI
LIABILITIES
to
recom¬
the
country.
do,
Only Serious Charge
Bill, under which $3 billion would
foe collected into
to
I have found that much de¬
ures.
President denounces
he
has
crackpot
; President Promoting Inflation
While the
administrator
prevent if possible the enactment
of many crazy and
'
Z
English, French, and Belgian Branches
Mtmber Federal Deposit Insurance Corporation
•
■'
•
t
i
•
f
-
:.
,
-—.—
a.
-——t—a
■<.1..1
.
l"'
—
146
1) \ :
THE COMMERCIAL & FINANCIAL CHRONICLE
•
first half.
The Outlook ioi the Stock Maiket in 1946
(Continued from page 125)
of strikes will
be combined with
of price controls severe enough
to
seriously impair profit margins in
many industries. Such a combina¬
tion
on
have
could
serious
a
the earnings and
restrictive
level
This
both
effect
ercussions
earnings and dividends.
would undoubtedly impair
and
stock
-
..
Supposing
we
that
.
J. /.' /
and
■
..
this question
capable of absorbing 15
increases without
20%
wage
than minor declines in their
more
produc¬
the
as
other
out
pessi¬
outlined but allow¬
earnings forecasts of
few of the
a
stocks in the Dow-Jones averages,
small amounts off a number of
others, and little
or nothing from
Obviously it is possible,
improbable, that the Bethlehem
Steel and U. S. Steel might show
Virtually no earnings in 1946, that
Chrysler
and
General
Motors
might run well below what had
But it is equally
obvious that it is
going to be vir¬
impossible to prevent the
item, of tax relief alone
raising the earnings of du
Pont,
Eastman
Kodak,; Allied
Chemical, Sears Roebuck, Union
Carbide
and
Goodyear, among
others, well above those shown for
1945.
earnings ; in this
thoroughly
pessimistic
manner,
the worst that it is possible to do
is to reduce Dow-Jones earnings
for 1946 to between $10.50-11.00
a
share, as compared with the
■'
■
•••'! >
r'rW IfUR
Business Established 1818
generally accepted estimates
more
i.
v»f*
i
BROWN BROTHERS HARRIMAN & CO.
/.:;:/■:'/:////
v
/
•
=■
■
of Condition, December 31,1945
.
.
.
.
'$ 42,171 ,'878 50
.
.
Other Marketable Securities
*
.
Loans and Discounts >//* :.
,
.
Liability
on
s
»
5,235,916.80
s
' 7,918?295-52
.
f^
$209,702,808.13
Acceptances
i
i
V,
.
$
......
.
'.
7,805,445.02
investor
is
not
drop of roughly
but
it
would
be
13,685,283.54
share to be paid out of
yield
Deposits
as
Pledged
to
$11
earn¬
than
the
at any time in 1945
yield ranged between
Moreau D. Brown
*W. A. Harriban
4'
Prescott S. Bush
extremely
in
decline to
a
seems
low
as
highly improbable
Louis Curtis
Ray Morris /
I
E. R. Harriman
II. D. Pennington
•
f*~
thing below 180 is to be expected.
This brings us to the question
.
of the
;%;■ Foreign Banking
•/
;■
pattern of stock prices for
If there is to be any sizable
:■//■.
for
of
Purchase
Sale / />
Securities
Investment Advisory
Knight Woolley
and
reaction from the present level it
obvious that it must
seems
first half
in the
Commercial Letters of Credit
Brokers
Service
occur
of the year and
possibly in the first four months.
This will be 'the period during
which the greatest disruption of
production due to strikes can be
expected. It will be the period
in which the greatest doubts about
y
Managers
the
•IT. Pf.lham Curtis
Edward Abrams
Ernest E. Nelson
.
Howard P. Maeder.,
David G. Ackerman
/
Donald K. Walker
Arthur R. Rowe
Edwin K. Merrill
Joseph R. Kenny
Arthur K.Paddock
Herbert Muhlert
second
William f. Ray
;/
•Eugene W.
Stetson, Jr.
Gale Willard
A-/:.:-/
F. H. Kingsbury, Jr.
Harry L. Wills
Joseph C. Lucey
Georce E. Paul,
Charles S. Carlson,
Comptroller
Treasurer
Smith, Auditor
examination and regulation by the
Superintendent of Banks of the State of New York and by the Department of
Banking of the Commonwealth of Pennsylvania. Subject to supervision and examination by the Commissioner of Banks of the Commonwealth of Massachusetts.
as
Private Bankers and subject to
half
the
of
&
Lee
Company
share and that the opened its new offices in the Secu¬
sell at levels rity building on Jan. 1. The firm
that
will
anticipate
very
high handles U. S. Government bonds,
earnings in 1947. It is possible to municipal and corporation bonds'
envisage a situation in which such and investment stocks, both as a'
anticipation of increased and in¬ dealer and a broker.
Mr. Lee has been on the Valley
creasing earnings and dividends
would seem to justify a level of Bank staff since 1942 during the
250 in the average or higher. The absence of his brother, Comman¬
$12
a
market will begin to
)
depart- ;
ment, who recently returned to
the bank following his discharge;
a condition that may only
theoretically / exist towards the
end of the year.
But there is such
real
possibility that late this
will find the stock mar¬
ket at sharply higher levels as it
engages in
the process of dis¬
counting what may turn out to be
a
from the Navy.
decidedly prema¬
cerning
year we
rate of
the most favorable
earn¬
Lee, Vice-President in
S.
charge of the investment
parallel of 1927.
ture to add a word of caution con¬
E.
der
experience of 1928 might well be
closely paralleled/ just as
1945 has been a surprisingly close
fairly
thing
will
todo
be
With- Extreme care
the
)
/
Continuously engaged in the in-»
vestment securities
business fort
past twenty years, Mr. Lee,
the
to joining the Valley
prior
•:X'
Na¬
Bank, maintained hi$ own \
tional
Chicago. His
experience began in
joined the bond de¬
investment firm in
investment
1926 when he
partment of the Harris Trust
Savings Bank in Chicago.
m
and j
llnioQ Asbestos &
prospective rates of earnings
dividends
and
to
determine both
and
and
how long they may be expected
to continue at a high rate.. It will
be almost as
I-
Stock Offered
analyze
to
the then and
whether the peak in earnings
dividends is being approached
important to review
the relationship of stock and bond
and the influence of the
supply and monetary fac¬
tor to decide whether these fac-r
take
to
tors
granted certain fac¬
obviously bullish
for
that
were
througout
the
early
and
middle
stages and to be lulled into the be¬
lief that these factors will never
factor less of a sustain¬
ing influence than it will be in
the later period, but this will be
partially offset by the more fa¬
outlook
the
for
.
A
group
"of
42
,
underwriters
Kuhn, Loeb & Co. on
Jan. 7 offered to the public 217,384 shares of ($5/par) common
stock of Union Asbestos & Rub¬
ber Co. at $17.50 a share. The of-;f
fering marks the initial opportunity for public participation in
i/
the stock ownership of the com¬
headed by
pany,
tion in Illinois in
In preparation for the public
financing, Union Asbestos last No¬
|
|
increased
from
vember reclassified and
authorized capitalization
its
70,000 shares ($10 par) stock, of
59,422 shares were out¬
standing, to 500,000 shares of ($5
m
Second 6 Months
The second half of the year ap¬
pears
the
likely to be the
favorable
factors
back into their own,
been
one
also
in which
will
yields.
will
be
necessary
to equate
the money supply and its direc¬
tion with the increase in security
prices, to recognize that this fac¬
tor is fundamentally a passive one
that needs such stimulants as ris¬
ing earnings, dividends and stock
prices to make it dynamic and to
question its force as a bullish
factor if there are any indications
peak in earnings is visible
in the relatively near future. Mon¬
that
ey
a
does not go into the stock mar¬
ket
in
quantity
dividends
have
if
or
earnings
are
and
about
to
turn downward.
The
outlook
for
1946
is
a
fa¬
eight shares of new stock for
one share of old.
each
r.
»
The
manufactures
also
special steel-*
railroads,
fabricated equipment for
consisting principally of station¬
ary and convertible bulkheads for
refrigerator cars.
Judson James, Jr.,
Again With
James Stayart
/
;
DALLAS, TEX.—James, Stay& Davis, Inc., First National
Building,
announce
that
Judson S. James, Jr., having term¬
inated his services after three and
art
Bank
subject to relatively
minor interruptions, and we again
have a "New Era," but New Eras
one-half years as executive man¬
always create new problems.
associated with their firm.
Quarter Century for
Carreau & Co. in "Street"
Rankin Returns to Putnam
vorable one,
ager,
of
the
War Finance Com¬
again actively
mittee of Texas, is
second
half of the year.
Boom Likely in
bond
making
year,
the yield
vorable
Arthur B.
*Now in Government Service.
Licensed
the
will be most in question. The
L. Parks Shipley
McElrath
James Hale, Jr.
William A. Hess
for
earnings
actual
the
larger part of the increase in div¬
idends may not occur until the
"
Thomas J.
and in which the rate of earnings
and
Assistant Managers
Merritt T. Cooke
profit margin are apt to arise
year
John C, West
Charles F. Breed
.
,
M.
Benton
principal business of the
company is the manufacture and J;
sale
of
insulation materials.
It
165
as
Deposit Accounts 'Loans • Acceptances
Thomas McCance
.
above
"consultant, Mr. Bimson
■; ■/ ■ '" '
The extremely low
level of bond yields may make it
virtually impossible to bring stock
yields down to or below them, It
thrown
1946.
;
said.
par) stock, of which 475,376 shares
are outstanding. The increase was |
effected through the issuance of
is
Comi^ete FactlIties for Domestic and
//:
Thatcher M. Brown Stephen Y. Hord
vestment
It may become extremely dan¬
gerous to rely to any great extent
on what may appear to be, on an
historical basis, a still favorable
relationship between stock and
an
relationship to bond
yields. When the monetary factor
FACILITIES
PARTNERS
:
part of 1946 will find earn¬
beginning to run at a rate
Dow-Jones average well
the
which
favorable
'
t
•/"■/
Company, but will con-/
in¬
tinue to serve the bank as an
lose their force.
and it becomes doubtful that any¬
v
brokerage firm, Benton
M. Lee &
place stock yields in
Secure
Required by Law.
vestment
3.45 and 4.40%. This in turn would
•
$209,702,808.13
U. S. Government Securities Par Value $700,000 are
who ;
money
But the applica¬
speculator.
when
^. /:
Public
*
So that at 165 the average
would be yielding 4.5%, a better
5,500;000.00
2,000,000.00
11,685,283.54
latter
M. / Lee,
Benton
as¬
yields
a
180,489.78
etc
$
•
earnings
a
of
resignation, effective Dec. 31,
-
ings.
Expenses,
Contingencies
Capital
Surplus
'
Such
ARIZ.,—Walter R.
President of the Valley
National Bank, has announced the
which since its incorpora¬
1918, has been
privately held.
tion of other factors makes the
None of the proceeds from the
165 level one which either is un¬ tors should be depended upon as
sale. of this stock will revert to;
likely to be reached or unlikely heavily as they have in the past. the company, all of the shares i
to be touched more than momen¬ There is a tendency in bull mar¬
:i:Abeing offered having £ been pur¬
tarily. It would be reasonable to kets, which" grows stronger the chased by the underwriters from
expect dividends of $7.50 to $7.70 longer the bull market continues, present stockholders.
*■ ..
8,225,249.03
419,804.01
Accrued Interest,
Reserve for
17//times
PHOENIX,
Bimson,
entirely possible that the
the
i
2,944,451-90 $186,531,589.79
Less Held in Portfolio.
is
It
painful to him and disastrous to
$183,587,137.89
.
.
cheap and that anything hbove 200
would be extravagant. And it can
term
7
LIABILITIES
Deposits—Demand
>;'
16% from the present levels would
be cataclysmic to the long
*
-
Earnings
on
not
716,920.39
'
well
may
ings and dividends to be expected
it seems
more than worth while to consider
.
average.
48,474,193.47
Acceptances
Other Assets
.
$11 seems much
be said that a period of temporary
pessimism might bring a decline
to 15 times earnings or 165 in the
46,794,566.71
;
j
vi;
58,391,036.74
Municipal and Other Public Securities
Deposits—Time
and
sense
than
United States Government Securities
Customers'
The $10.50 fig¬
"realistic" that it doesn't
Opens/
in Phoenix, Ariz.
sert itself most strongly.
' t
.
*
j such a situation well in advance.
Now it is true,, if earnings are
Year-End Caution Urged
to be only $11 in 1946» that a level
of around 190 or a little better
~*Df course • the most important
■
.
oA Hand and Due front Banks.
earnings will be
of earnings rises.
in this bull market, that
;/;/Z/;/;ZZi///;//
State,
so
Prospective Prices Based
■'■•/:/'///.:
f-* Statement
better.
or
is
fairer*
•;//>;. / //./;,/
Cash'
$12
make
/ PHILADELPHIA
BOSTON
NEW YORK
of
ure
BANKtiRS^PW
PRIVATE
of
rate
It may seem
at
pronounced
At
Benton Lee Go.
Vice-President,; '
has been in charge of the
this time the market's well estab¬
bank's investment department for
lished habit of selling on the basis
the past three years.
Mr. Lee is.
of \yhat it believes the future rate
resigning to establish his own in¬
-
,
Slashing
more
the
ings
tually
single
factors
being ameliorated
1945 will become
for
expected.
unfavorable
as
if
been
The
will at least be
others.
from
fsvZM* ■■■$$&-
tinued.
and the increase in dividends over
.
most
to cut sizable amounts off the 1946
,
; "
be
many are
in¬
wage
•
■/
similarly affected; that
considerable segments of industry
will
be
very
little
jarred by
strikes
or
wage
increases; that
give the unfavor¬
a weight as
substantial
; ;
>• ;
immediately consider
that all industries will
fact
not
possible. Supposing we say that
price controls will be continued in
their present form through all of
1946,
'
must
the
heavy
as
•
Before answering
one
*-///-:
able factors
i
Industries
market
■
"%■'
•
Varying Effects on Individual
confidence, the latter in particular
because of the high hopes that
have and are still being held for
1946.
stock prices?
on
■■
full
ing for the variations just men¬
tioned, it is theoretically possible
What then will be the rep¬
,'V ■<; 1
of
business
upon
in
worked
on
mistic basis
divi¬
and
earnings
effect
have
Working
serious and disappointing
dends.
and
methods of cutting costs.
production
a
rolling
are
tion
factors will
year,
have
effect
a decidedly
the overall
on
disrupting
and that all of these
the
dividends of
companies and
Some
they
granted, that strikes will
continue off and on throughout
creases
continuation
a
insufficient price in¬
nominal and
strikes and threats
The volume of produc¬
tion will be
increasing and help¬
ing to absorb increased costs. Some
increases will have been
profit margins and that others will price
show only minor declines once permitted even if the OPA is con¬
will be granted and only
creases
1946
Thursday, January 10,
come
if they have
Company, 63 Wall
Street, New York City, members
New York Stock Exchange, es¬
*
Cafreau
tablished
&
on
Jan. 6,. 1921, is cele¬
temporarily obscured in the brating its 25th anniversary.
HARTFORD,
J.
Rankin,
Lieut.
Jr.,
CONN.—William
who
Commander
in
served as '!.
the U. S. *
returned to
Putnam & Co., 6 Central Row,
members
New York Stock Ex¬
Naval
Reserve,
change.
has
.
•
"V
'
Volume 163
THE COMMERCIAL & FINANCIAL
CHRONICLE
Number 4454
strikes
Truman Places Blame for Reconversion
5
..(Continued from page 122)
you—the American peopleon issues which will be the
sub¬
In
'.
to
ject of debate when the Congress
'
reconvenes.
six
«:
is
Z This
of
:
-
•
Nineteen
-
year
will
lay the foundation
we
have
to
This
fortydecision.
of
year
economic
our
tions.
-
and
structure
for
serve
which
genera¬
words
other
was
to
primary
our
about
bring
whether
of
full
power,
or
shall
devote
United
This
year
shall
we
have
to
which
y
will determine whether
make
•
the
for
of
citizen
every
It
States.
with
be
bigger
means
and steadier markets for business.
decisions
gain
we
that
great
:
Goal Not Obtained
We
have
gone
ficult. % We
; road
I
toward
,
"
.
coming
stop us.
Y
In
.
the
■://.
of
can
Y://y;YYZ}Y
.
message
to
Sept.
on
risk
barrier which
upon a
the
gress
;
along the
goal,\ but, at
our
we run
turn
every
*
dif¬
well
are
a
izations
them
1945,
6,
the
Con-
and
in
more
goal..-
Z
called
I
upon
received promises
and teamwork
of
co¬
during
:
that
■
those
promises have not all been kept.
a result,
many obstacles have
As
been
thrown
in
our
path
as
we
have tried to avert the
dangers
of inflation and deflation.
any one of us
few months ago.
long way from our
.
Labor-Management Disputes
'■
First
The return of the United States
| these Y obstacles
labor-management dis¬
among
have been
to
a peace-time economy in 1946
requires the same co-operation
that
we
had " during
the
war
putes.
'
Immediately
after
future
and
problem—what
strikes when
tion
and
broken
As
to
do
I
messages
have
outlined
legislative proposals to meet the
;
'
;
of
adopted.
them
slow.
.
Progress
been
has
most
on
r
Now,
»
.
at the beginning of
this
new
year, is a good time to take
stock.
First, I can say with emphasis
that the legislative branch of our
government
has
done
its
full
share toward carrying out its re-
"
sponsibility in foreign affairs. Yf
The Congress has
approved the
;
Charter
/
of
strikes
very
deeply
concerned
I
soon,
about
that
sure
Day
recom¬
my
been
It has
recom¬
misrepre¬
recommendations,
affect
however,
clear.
that
proposed
est,
in
industries
the
work
would
national
after
all
the
other
few
where
a
vitally
public inter¬
efforts had
failed, the government should
step in to obtain all the facts and
report its findings to the .country.
Experience
has
once
the facts it
can
felt in
a
to
a
give
repeatedly
the public knows
make
practical
its opinion
In order
way.
fact-finding board
a rea¬
sonable chance to function before
strike is actually called, I sug¬
gested that there be a thirty-day
a
been
the
all
of
have
nation-wide
in¬
have
my
would at least pro¬
purposes
very
I
workers
"cooling-off
fu¬
period."
that
recommended
of
us,
them¬
them
can
do
the
I
the
further
of
power
was
job alone.; To¬
thought,
the
/
particularly
by
conference
ended
it
became
; gram
tion
the
United
United
common
were
to
producing to meet
the needs of war, we had the great
stimulus of the war itself.
That
is
stimulus
now
The
gone.
operation and teamwork in
quarters, I
am
would
suffered proportionately,
ground,
able
to
that
agree
they
upon
ways to avoid stoppages of work
and to continue the production
co¬
that was: so necessary/to
^our;eco¬
nomic life.
some
to say, have
sorry
be
"
•
„
,*•
-£.•
.• *
v:'.t
•
VAV".
•
=•
>
•
•
'V
si/V
.
Y.v-1
'
Industrial Disputes
Peliod
Dangers of Reconversion
Unfortunately ; industrial
^qon began,/ and
putes
1l®hRYiNG':;f!l
.
dis¬
many
TRUST COMPANY
Nations
NEW YORK
Nations
Chartered
1799
Statement
Organization.
It has passed leg¬
carrying out the Bretton
Agreement. It has proYvided support to the United No¬
tions
Relief and; Rehabilitation
'Administration!
Y/'/ Y///Y'';
islation
The
Congress is indeed to
congratulated by the' people
that
it
contributed
Bank of
of
search
the
for
shall
world
have
in
more
to¬
Condensed Statement
-t/
their
l
of Condition
■^/'''
us?L,;x?''
«
■ / -
of December 31, 1945
as
message
Domestic
When
Cash and Due from Banks and Bankers
turn to
we
domestic
our
tJ. S. Government Obligations
.
.
$
305,697,448.68
604,254,742.25.
.
Other Public Securities
......
Other Securities. ',
.
.
.
..
..
..
.
.
.
.
.
.
.
Ranking Houses Owned.
.
i
.
.
.
.
.
.
.
10,880,999.34.
■
problems,
ilar
do not find
we
record
of
problems
in
and
the
need
of
duction and
shall
we
ways just as diffi¬
international prob¬
our
Unless
lems.
"
our domestic post-war
are
just as serious—
many
cult—as
and
Congress.
progress in the
And; yet
sim¬
a
achievement
we
can
meet
soon
obtaining
full pro¬
employment at home
face
serious
Loans, and Discounts
Real Estate Mortgages
v
»
/;
.
the
but
American
also
position
our
the
nations
With
people
in what
as
the
such,
as
do
can
to
among
of
Japan
last
August we set certain do'/ mestic goals to be attained. The
tasks
before
they
are
us
clear
were
clear
We had to reconvert
from
omy
idly
as
We
war
had
to
oh, a
high
change-over.
had
to
commodities
high.
to
our
econ¬
peace—as
keep
Customers, Liability for Acceptances
U. S. Government Securities
i
m
*
«
841,113,588.43
.
#
#
,
Stock in federal Reserve Bank
«:
;
«
♦
♦
#
•
Real Estate
«
.
*
i
i
Mortgages
.
on
.
.
.
•
•
♦
Headquarters Building
|Customers' Liability*
for Acceptances
Outstanding.
Other Assets
.
,
-
'*
8,175,893.45 (
3,088,100.00
\
279,238,814.88
4,640,791.13'
15,269,600.00
* ^•8
;Y
*
•
I
I
1,178,997.01
;
•*#»♦##
;
;
4,138,882.57
$1,428,354,898.30
LIABILITIES
34,767.87
Other Assets
/ 2,584,707.27
,
3,584,868.60
.
$1,359,074,438.76
Capital (2,000,000 shares)
Surplus
.
.
►
.
Undivided Profits
.
.
.
.
.
30,000,000.00
Deposits
.
»
v
Y *;',
.
.
.
.
.
,
•
.
.
.
.
.
..
.
.
.
.
,
.
.
600,000.00
77,602,302.43
;
Acceptances Outstanding
:
Acceptances.
.
$1,277,919,523.62
25,349,694.94 $1,303,269,218.56
♦
i
.,
I
•
v
f
$5,717,287.01
j.
Dividend
Z
Other Liabilities, Reserve for Taxes, etc.
2,731,991.50
;
1,692,547.81 $
4,024,739.20
Expenses.
payable January 2, 1946
Other Liabilities
.
Capital Stock
/y;y
4,902,059.39
.
...
.
.
4,768,420.59 ;
;
...
1,750,000.00 Y
.
6,463,371.28 (
.
Surplus and
$50,000,000.00
\
Undivided Profits
;
60,411,340.06
110,411,340.06
$1,359,074,438.76
$1,428,354,898.30
employment
Of the above assets
the
prices
had to get
goods produced and put
market promptly.
We
deposits
are
are
purposes;
preferred
as
pledged
to secure
and certain of the
provided by law.
of
too
civilian
up
upon
$299,119,334.07
^public deposits and for other
above
going
*
.
1,212,711,911.91
...
.
.
Certified and Official Checks
60,526,173.53
;
y
;
Reserve for Taxes and Other
10,526,173.53 $
.
Dividend Payable January 2, 1946
;
Official Checks
Portfolio
$20,000,000.00
.
.
Deposits;
Less Amount in
LIABILITIES/
rap¬
purchasing power
during
the
keep
:
;.;'/•*/
$271,510,230 83
"
level
from
/
' •; •
#
12,283,825.40
possible.
and wages and
We
then;
now.
;",f/*-•'
I
'
world.
surrender
./''"fY
.':
'
,
4,671,812.68
conse¬
leader
a
of
the
they
,
'
vv
«
.
388,178,058.90
'
only
'
YZ/Y/if/Z/Y ■!
26,903,207.77.
Y
Other Real Estate Owned ;>
They will be serious
in what they mean to
quences.
/ not
■■■}*].'.-- !'
•
'8'iY>•'•'• -Y-~..'•'7Uv
•
ASSETS
to
Problems Neglected
<■
ASSETS
Cash and Due from Banks
First
the foreign^ policy bf the United
States in the annual
/Y- *///
i
Loans and Discounts
on
the Congress.
A'
8|
Other Securities.
NEW YORK, IV. Y,
be
and -security;
to say about
peace
^Manhattan Company
//'V-
8
'';:*/
co-operation / among/ the
nations
I
has
of Condition, December J/, 1945
Food
Woods
ward
no
find
we
.
,
*
all
is
While
reciprocal trade agreeIt has approved participa¬
in
There
responsibility as the President of reason why a strike cannot be
that/through the United States to recommend
postponed for thirty days. Nor is
collective bargaining, labor and
a course of action.
This I did in
8 (Continued on page 148)8
management
would
able ;
:
of
-
labor.
to
management,
can.
by the United
It has continued the pro-
;ments.
harmful
my
labor
and
gether they
full participation
States,
/
are
strike, and with the steel
workers, electrical workers and
packing-house workers scheduling
Organization./It has provided for
.
'
follow
or
years.
V "
.
would
shown that
with automobile
be¬
a
i There /is one vast
difference,
however, between 1941 and 1946.
distressingly
Foreign Legislation Attended To
/
go
,
been
"
The
on
am
either
all
has
I
long way toward
problems.
had hoped that the Congress
The
,
strife
fact¬
which
sented by some of the spokesmen
of both labor and
management.
about
had
certain
meeting these
mendation
bargaining, concilia¬
industrial
I
can
discussions, stoppage of
arbitration
•
down.
creased
out
recommended
lieve
on
done neither.
labor-management conference
ture.
V-J
meetings
Congress
pose a solution of its own.
con¬
conference of their
own,
a
the
finding procedures
mendations
could not agree upon a solution
of the most immediate and
press¬
ing
I
other
many
meet in
the
message
to
Dec. 3, 1945.
subpoena be given to the fact¬
including these workers
the - government
announced
a
finding board so that it could get
Industry, labor, agricul¬ policy of taking off the war-time selves, share that concern.
all the pertinent facts.
problems which lie ahead. Many ture, the Congress, the President controls; which it had exercised
"Fact Finding" Proposals /,
; In
the setting up of fact-find¬
of these; proposals are pending —each of these—is called upon over wages and over
industrial
J: When the labor-management ing boards, there is nothing
to do certain things.
None of relations
before the Congress. A few have
as ~
whole.
It
other
;/
*
common
for prevent¬
means
.
•
From
me.
say
goods than
are a
/
this reconversion
period.
I
regret
to
dared to expect a
r. But we
will
,
operation
greater numbers, and are produc¬
ing
equally disastrous.
a
aspects of in¬
dustrial relations, the
government
invited their0 representatives to
and
result
try, of labor and of farm organ¬
'
88; The months ahead will be
production
make
in Washington.
Immediately
after
the
sur¬
of
Japan,
in
the
full
Although it did reach agree¬
flush of our
victory, representa¬ ment on some matters and al¬
tives of the
Congress, of indus¬ though it did pave the
way for
or
future
reduced
to
ing work stoppages, and to
sider
a
I
labor
effort to find
embark
we
both
render
It means world confidence in our
leadership.
whether
conciliation
In order to enable management
and
unemployment and
and
purchasing
spiraling prices — the
the
long way in
our
workers
and fac¬
:•
at home
and abroad which we getting
tories back on peace-time jobs.
/ fought so valiantly to achieve, /I'
I wish I could say to you that War plants have been cleared in
/ everything is in perfect order— large numbers, and their war
that we are on the way to eternal contracts settled. Men, machines
and
raw
materials
are
already
8 prosperity.
back in peace-time production in
I cannot.
not
/
period of great inflation
a
of
were
But there
failed.
fall
deflation
upon
we
ployment.
great
Many
strikes
strikes of nation-wide
in' which
collective
some
bargaining and
the
homes, better food, better
health, better education and se¬
ter
not
em¬
of
and
conciliated.,
or
importance
of
economy as
Whether
we
a'period
were
pass¬
wages
curity
full
now
"elements
our
/period.
into
are
reduced"
decide
and
war
to
we
many
good profits based on big volume.
Reaching that goal means bet¬
must
production
danger
as
of
7-
we
or
has
called.
were
disputes
settled
because
work
year
strength to reaching the goal
our
ing
for all who wanted to
high farm income —and
'
Z
through which
ex¬
an
panded production
and steady,
well-paid jobs
and purchasing
power
hundred
our
aim
Snags
these
147
the
Member Federal Reserve
Member Federal
United States Government Securities
cost.
are
stated
at
amortized
Of these,
$333,496,813.10 are pledged to secure deposits
of public monies and for other purposes required by law.
System
Deposit Insurance Corporation
Member Federal Deposit
Insurance Corporation
-
THE COMMERCIAL & FINANCIAL CHRONICLE
148
Thursday, January 10, 1946
Truman Places Blame for Reconversion
to
'
(Continued from page 147)
there
any
intention of taking
away labor's right to strike.
That
right remains inviolate. There is
no effort to shackle labor.
There
wait upon the
of leg¬
passage
You have seen how the
islation.
Corporation has
co-operate with this
Motors
General
refused
to
board. There is no
is only an effort to find the truth way that it can be compelled to
co-operate
unless a statute is
and to report it.
A '
passed giving the board the power
On the other hand there is
of subpoena. That is what is now
nothing harmful to management
;
in this proposal. No detailed in* up to Congress.
Every day that production is
formation
obtained
from
the
are
books of any company is to be delayed and civilian goods
revealed;
It is nothing new to kept from our markets by strikes
or lockouts brings injury to our
have the government get accurate
'
.
,
information
It is
done
from
corporation.
Federal
a
by
now
the
agencies—by
reconversion
millions of dollars
many
been
men
of In¬
Bureau
ternal Revenue—by the Securities
and
in wages have
Laboring
using up
workers.
to
lost
Already
program.
women
are
Exchange
Commission—by their savings. It is for these rea¬
and Hour Division of sons that I urged the Congress
the Department of Labor—by the to pass this legislation : without
This legislation is still in
Interstate Commerce Commission, delay.
the Committee on Labor in the
and by many others.
and
the
Wage
Without
function
cannot
boards
ciently
legislation, fact-finding
as
they
can
effi¬
as
under
statute.
a
Representatives and in
Committee on Education and
House
the
Labor in the Senate.'
For example,
I appointed
gress,
bb'ard
I
-
the
in
General
the
shortly after I made
recommendation to the Con¬
fact-finding
a
dispute
Motors
between
Corporation
Automobile
United
and
Workers.
thought the matter too
urgent
,
•
from all the sources
information which I am able
I
my
of
am
sure,
Snags
six
I
follow.
a
•
'
•
Most
Powerful
;
.
Group
second
instead
of
Since
requested.
year
Education
of
as
resting in the
are now
and
Committee
Labor
Senate
the
And
shortages of
surely
materials
haa
action
no
in
and
Labor
the
Committee of the House.
already
we
war-born
that
certain
a
Congress,
,The bills
war
act, recently extended for
months
know
'
'
* •
,
Pressure
Another is the
powers
Once that is done,
be sure that results will
the
been taken.
which require exten¬
powers
sion.
Congress.
you may
fact-finding
'
'
the
in
is only one of the
Price control
war
will
after
it
so
with
goes
measure
in
now
measure
the Con¬
short materials will continue to be
running
out.
There are other problems: com¬
prehensive V scientific
research,
universal training, a health and
medical
care
program,
an
ade¬
quate salary scale for Federal em¬
when they decide to make them¬
selves felt, are the most power¬
fairly controlled and distributed.
Unless we do this now, controls
ployees, the Presidential succes¬
sion, river valley development
ful
will
I
was
member
a
ten
for
of
June 30 of this
year, when the extended law will
expire, the law should be ex¬
tended again now. If this is done,
plague
Con¬
the
and am fa¬
groups of all kinds
representing
special
interests.
Some
are
right, and some are
wrong. But there are those who,
gress
miliar
I
pressure
the
great
American
The
of the
nation
as
There
should
whole.
a
difficulty is that the
public body of American
citizens
find
who
it
not
are
difficult
to
I
hope
and others.
a
which
things
intend
Of
by the Congress
its responsi¬
done
be
I
the
that
constituents
x
the
them¬
talk
by
have
and
me,
while
they
at
are
labored
have
to
to
ade¬
if they
But
needs.
our
succeed, they must be re¬
by you—the people they
inforced
represent.
legis¬
individual Congressmen.
But the Congress has done little
•—very little—about them.
their
to
House
are
quate
lation by
of
members
will
,
to make effective a program
been written into proposed
Congress
criticism
Devoted and
in both the Sen¬
men
the
and
ate
Congress
blanket
no
Congress.
far-seeing
fulfill
,
recommended
selves heard.
the
in
bility to the nation. Many of these
measures
have
already
been
organized
make
other
are
would
it
if
only
great
down
break
to
Proposals Still Unenacted
interests,
only the in¬
are
begin
know that
is
.
Wants No Conflict with
citizens
our
will
men
Time
gress.
short time.
people—
special
no
whose interests
terests
of
mass
have
business
all
in the world.
group
the
mean
who
years,
with
after
us
that
,7,
let
And
I
when
\
make it very
me
clear
speak of bills not
action, it is not the
pro4 getting any
to tide Congress as a whole which is re¬
All these measures—
will really do something substan-r us over the reconversion period sponsible.
tial about strikes along the lines but also to carry us to our goal and many others—have been re¬
ferred to various committees of
of full production and a higher
I
have
suggested ■ instead
of
standard of living is the adop¬ the Congress. That is the regular
come
for
every ; citizen
of the merely talking about them,
There
they
await
I
have
indicated > my... opposi¬ tion of full employment legisla¬ procedure.
United States to make his opinion
tion. A satisfactory full employ¬ action. Generally speaking, unless
known to his representative in tion, and I repeat it now/ to the
ment
bill
was
passed by the the committee acts to report the
anti-labor bills
pending in the
Congress which seek to deprive Senate.; Another bill was passed bills, the members of the Con¬
labor
of
the
right to
bargain by the House of Representatives gress as a whole never get a
which
is not
at all acceptable, chance to vote for or against them.
collectively, or which seek to de¬
It is the committees which hold
prive a union of its ultimate right and which does not accomplish
Indeed, it is
to strike.
That is why I am so any of the purposes sought. These up action on bills.
of
that the American people
agree with the necessity for some
fact-finding legislation along the
lines recommended. The time has
to
use,
home
on
and that im¬
their return they
upon
essential
One
vacation,
mediately
part of
designed
gram
our
only
not
-
,
anxious to have
NEW YORK
AND TRUST COMPANY OF
on
effective
which
of
none
of the
Main
road Street
Office, 37 Broad Street
/:
,
;.;V7'r
CONDITION
OF
December 31,
.
'•5-v.iV
RESOURCES
a
and Due from Banks
*
*
«
324,192,673.58
*
•
*
State and
.
*
♦
♦
♦ ■ • •
7,603,250.31
•
Other Securities
*•
^>1
Loans and Discounts
*
#
*
2,407,076.17
136,793,239.93
.
Customers' Liability for
Acceptances
♦
Stock of the Federal Reserve Bank L
Banking Hopses
11^1,522,04Q.72
.
.
.
.
Other Real Estate
.
.
.
.
.
>
.
•
♦
%
,
*
660,000.00
1,915,786.70
.
.
Accrued Interest Rec£ivjfljl<*
Other Assets.
.
•
-*
*
•
,
25,143.66
,
.
.
,
1,241,454.18
323,234.90
•
equal
$579,536,017.56
LIABILITIES
We
.
.
.
It
i
was
no
talking
use
conferees would
ex¬
i which
unless we
upon
steady jobs depend,
keep prices at levels which "the
vast majority of the people can
afford to pay!
Today the pressures for infla¬
tion are many times stronger than
those
which
caused
after
World
War
the
inflation
I
and/which
caused the 1920 depression.
The inflationary pressures now
at
work can bring an inflation
and
will
that
crash
a
serious
than
be
much
That
1920.
.
$9,625,000.00
weapon
•
•
,
.
12,375,000.00
made
enough
to
goods
can
a
adoption by both houses. ? No
such bill has been reported. It is
most
important that the
con¬
ferees report a satisfactory bill
immediately upon the reconven¬
for
ing of the Congress.
have
of
the
been
—
,
measures
urging
which
I
22,000,OQO.QO
Dividend
i
Payable January 2
$26,892,178.13
4.892.178.13
>
165,000.00
.
360,979.86
y
Reserved for Interest,Taxes,
Contingencies
•
4,304,692.24
Acceptances.
...
.$3,195,332.68
.
Less: CHvn in Portfolio
.
know
1,120,409.71
2.074.922.97
Deposits
...,.
.
.
:■
,
240,264.29
now
.
.
.
.
.
.
at
public and
as
ar
Loan
trust
required
—
345,497,980.07
*579,536,017.56
$86,010,361.28
V. S. Government W
and other
...
/ '.
.
Securities carrietl
.
A.
are
pledged
Deposits of $83,449,424.29
deposits, and for other
or
to secure*
purposes
permitted by late.
federal deposit insurance corporation
25 Offices Located Throughout Greater IS'&iv York
remain
Congress
the
that
outlaw
in the Rules Committee
have prevented this
legislation from reaching a vote
gressmen
of the House
earnings
by the Congress.
carry
ican
their Congressmen
Minimum
gress
just as rapidly as we can
steps that we have
reconvenes
if
to
renew
have "a
and
the
act
as
do
standard
we
steady
of
millions
comes
hope to
stable
economy.
The line must be held.
I shall urge the Congress after it
come,
a
minimum
of
provided by law.
show that.
But
price and rent controls will have
to
be
maintained
for
mhny
to
Wage
Issue
substantially
raise
amount
taken
maintain
to vote for it.
I have also asked that the Con¬
The
already
out a fundamental Amer¬
ideal. 1 am sure that the
overwhelming mass of our citizens
favor this legislation
and want
predict¬
which their maYkfcts depend
protected.
"We are all anxious to eliminate
so.
Legislation mak¬
ing permanent the Fair Employ¬
ment Practices Committee would
upon
controls
wages
V
the
If
have
which I
measures
There are still
whose in¬
provide a decent
living.
We "cannot
workers
healthy national economy
section of
receives
below decent
long as any large
our
working
people
so
wages
'
wish—and I
which
are
is
sure
am
my
that it is the
fellow-citizens—that
Congress formulate measures
of
wish
of
it
Congress,
,
its
my
own
to
out the
carry
de¬
objectives. This is definitely
responsibility of the .Congress.
What the American people want is
sired
the
action.
'
■■■
•
'
,
v;
discussion of action at
this time, housing must be con¬
sidered.
In this field, the Con¬
In
any
gress
is co-operating, and there is
much to be done.
components
standard of
clothing and hous¬
Of the three major
which
make
living—food,
up
our
ing—housing presents our most
difficult problem.
'
As
for food,
there is every
prospect that 1946 will be a peak
of production. As for cloth¬
year
level
But in hous¬
tion will reach a satisfactory
some
time this year,
ing the situation is
not
of
approval of
fervent
ends do not meet the
the ing, Lt is expected that produc¬
now
Although
hearings
possible and in advance of standards.
its expiration date, June. 30, 1946, 'have been held on this question
soon as
give them that chance soon;
the
will be
dc
chance to vote
the
asked
They must have confidence
that the purchasing power
months
member: n. y. clearing house association • federal reserve system
will
future
able.
a
On several occasions I have also
be
things they will have to buy in
the
Other Liabilities
representatives of the people
"yes" or "no" on
these vital issues—and that they
the
in that committee unless the
people of the United States insist
that it be reported out and passed.
that the prices of the
now
;
recommended to accomplish these
up
ahead have the right to
plan
.
.
at least give
in the Ways and Means Com¬
mittee. :
It will
remain locked
up
will give them a decent standard
of living. Business men who want
to
:
.
asking is that these
am
committees
various
resentatives the bill is now locked
is
People have a right to protec¬
their
What I
,
tion for their savings. They should
that
these measures
of majority policy.
"Must" Objectives
since May of last year
When I speak of my recom¬
./the Federal government
make pfbvision to supplment the mendations and proposals I also
unemployment insurance benefits want to make it very clear that
now
provided by; the different I have no pride of authoriship in
them at all. There are, however,
states./ !
While unemployment has not Such things as "must" objectives;
reached anything like the level It is my responsibility to outline
which was feared, there still is those objectives to the Congress
need
to
provide at least some and to the people. And to attain
measure
of subsistence to those those objectives/there are certain
steps which must be taken, to get
men and women who do lose their
jobs by the end of war production. us safely over this reconversion
The Senate has passed an ac¬ period and to establish and main¬
ceptable
measures
along these tain a: stable economy for the
if -J/' 7'
lines: But in the House of Rep¬ future, 77.7. .A;';'..///-/:' .7
supply the demand, the
assured
whole Congress on
that
of the government must be' by permanent statute un-Amer¬
in employ¬
used to keep prices down—or in¬ ican discriminiation
ment.
A small handful of Con¬
flation will soon be at hand..
be
Unearned Discount
report bills. But often a bare ma-•
jority of a committee—a handful
of men—can prevent a vote by the
the Con¬
upon
power
Undivided Profits
jects, I personally know that there
are individual members of the re¬
gress ever
is
against inflation.
Until
have reported
satisfactory full employment bill
why it is so important to get a
high volume of production, a large
supply of marketable goods right
away.
Production is the greatest
f
:
;
spective committees who are try¬
s
purchasing
the
; L..
usually not even the whole com¬
mittee./ On many of these sub¬
ing to induce their colleagues to
the
was
progressive
One
about
production
panded
the
hope of
••
;
and
fervent hope, and I
my
that it
sure
pressure groups
keep
conference
Senate
Americans, that
before the recess of the Congress
for the
Christmas holidays the
management-labor
.
in
now
the
of Representatives.
all
power high or business prosperous
if prices get out of hand. There is
•
•
some
importance; with the
of
cannot
•
Surplus....
are
between
House
at work
in the Congress and outside of the
Congress, constantly pushing, lob¬
bying, arguing to take off price
controls and let prices go up with¬
are
more
Capital
of
pending.
now
bills
two
an
have
disputes during this reconversion
period is the question
keeping
prices on an even keefi^Here too
$102,852,117.41
U. S. Government Securities \
Municipal Securities
effects
evil
out interference.
-
.
Of
there
1945
will
Price Controls
settlement
S T A T E,JM E t* T-
Q N D E N S E D
the
legislation
books
our
am
.v.ftbx"7"'7,v r/'/
C
statue
Housing
We
urgently
million
different.
Problem
need
additional
about
five
homes—now.
replace¬
of millions of- existing sub¬
This does not include the
ment
standard
dwellings
(Continued
in
on page
citie3
152)
the
Volume
THE COMMERCIAL & FINANCIAL
CHRONICLE
Number 4454
163
and
Anglo-American Financial
cme
great attempt at organizing inter¬
national
the
another's difficulties and the
real
to
opportunity
of discussing the Bretton Woods
plan in your Lordships' H ruse, the
plan stood by itself, and its rela¬
tionship to post-war policy as a
was
This
clear.
not
for
the
least
answered criticisms. All
reply
say
•
in
was
not intended
self,
but
which
our
transitory financial difficul¬
are
largely due to the role we
played in the war and to the costs
States
more
eign exchanges
and
•
on
non-discriminatory
same
here
we
feeling
a
still share to
might not be ask¬
us
through the transition by
financial aid which approximated
to a grant.: We felt it
might be
for
us to
indicate the gen¬
eral direction of the policies which
that aid would enable us to
proper
pur¬
and
sue
to
undertake
fnove
to
them
if we
his
If the noble
had
out
had—I
relative
Uncle
Sam
the
How
is
all
subtracted
line
a
and
of
to
be
assessed
credit?
of
financialaid
from
the
United States to enable this coun¬
try to overcome the immediate
difficulties of transition which
in
our
own
way./Released
from immediate
pressing anxieties
on
terms which would not em¬
barrass the
future, we could then
would otherwise make the shortterm proposals impracticable and
proceed cautiously in the light of
experience of the post-war world
as it
gradually disclosed its les¬
delay
our participation and col¬
laboration with the United States
in getting the rest of the world
along the lines of the long-term sons.
j§ I *
*
//. Clearly that would have
policy indicated. ///
given
future j
in
terms
the best of both worlds.
us
Forbids Bilateral Trade
'..r.
Arrangements
reasonable such
/'//■• ?/;//
in
/Each of these parts has been
subjected to reasonable criticism.
tdj work
but
long-term blue print invites
commit ourselves against the
future organization of world trade
on
the
principle of tying the
opportunity of export to import
by means of bilateral and discrim¬
inatory arrangements and
un¬
ly
involve
to
creation
blocs.
of
It
in
as
the
argued
escence.
an
mend
tics
of
and
post-war
how
have
actual
a
more
financial
say
aid
from
the
United
It is not for one
'
wno
has striven
day for three months
improve these proposals so as
every
to
to
lay them less
open to these criti¬
cisms, and who perhaps knows
better than most people how im¬
perfectly he has succeeded, to take
these criticisms
lightly; nor on the
day after my return to this coun¬
try am I yet in a position to
with
judge,
much
which
accuracy,
the
underlies-
the
mood
criticisms
which are being made, and
which
is, probably more
significant than
the particular comnlaints in wbirh
it -has
been
finding
its
outlet.
heads of the
the
during
Neverthe¬
eloquently, but I
V«~v"
'
? '/
-
?
>,
-
!" r.1
yv
Cash and
'-/v
>i'
~
■
■
from Banks
Public
I
New
response to our claim that for
reasons
past they
owe
arising
us
out; of
something
the
more
than
they have yet paid, some¬
thing in the nature of deferred
Lend-Lease for the time when we
held the fort alone, for it was here
that
in
had
an
expounding
early
pointment.
It
and
our
case
severe
our
as
possible.
which
able
was
strength of
<i"''
<
,
4
1
meeting'their desire for defin-
iteness, at least to
tent. .v
against
would
Nevertheless, it
this
a
certain
/; ■
Authority
I
In
Americans began by
moved
to
thinking
sonable, for at the outset the
culiar complexities of our
enlarge
arrangements
pur future com¬
were not
(Continued
on
page
at all
150)
Corporation, Federal Reserve System
'
*
t
Ai,\ 5"
«•
(
i*;f
■
.
December 31/45
$ 9,922,247.25
Real
&
;
Other
Resources —
_
be
;/"/v-'';V'^V:-..;-:
oackground.
was not very
long
9,400,785.13
9,140.91
72,329.05
111,893.28
40,310.06
....
27,552.68
*
299,167.35
...
423,629.42
i_——„—_13,606.50
.'
.
20,807.40
;
"
;/ //':"/-*/
Vv//
$32,730,768^63
•
•
•
:/;. V C
.:/
•
:/. LIABILITIES
Capital Stock (10.00 Par Value)
Surplus——.
_$
;.
Reserve for
Contingencies
Ai?"
*
Expenses
Unearned Discount
'
'';/
$ 1,500,000.00 ;
1,400,000.00
\
468,236.93
156,920.61
:
12,642.35
-
S.
$Tl,T44,253:04 '
v>.
60,882.68
Reserve tor Taxes, Interest and Accrued
Deposits: U.
/
1,000,000.00 ' 'V-4/
1,200,000.00
415,026.49
Undivided Profits
67,862.18
40,281.75
Govt
'
$6,365,935.47
____$3,355,154.74
All other
we
quite
92,400.00
389,762.13 *
.
Acceptances.
' V ;
309.878.65 ;/■■.
—
Liability Account of Letters of
and
87,000.00 '
'
8,068,228.75
Owned—Less Reserve
Furniture and Fixtures
269,754.69 ~
66,000.00
Co.—98,300.00
Interest Earned But Not Collected
Credit
/
\
_
Mortgages—Less Reserve
Customers
16,874,401.44
4,504,640.84
v
,
York
Estate
?
...___26.251.355.78
56,702.51
31,252,870.70
29,606,510.52
37,618,806.17
299,167.35
96,257.49
423,629.42
52,095.22
Acceptances Guaranteed for Customers and
Letters of Credit Outstanding
Other Liabilities
$327730/768.63
United
on
States
December
Government
81.
permitted by law.
1945
were
and
Other
pledged to
Securities carried at
secure
public
and
$5,205,619.86
trust
deposits
$41,744,253.04
on
and
December
for
80,
other
1944
and
purposes
as
$7,865,704.54
required
rea¬
pe¬
existing
COMPANY
Bonds
Stock in Federation Safe Deposit
and Discounts.—
Bonds
ex¬
' ;..
Yet I must ask Your Lordships
:
disap¬
wrong to suppose that Such con¬
siderations have played no
part in
the final results.
They have played
a vital part; we
could never have
obtained what we did
obtain ex¬
cept
of
our
American Reaction
must, at this point, digress for
to explain the Ameri¬
good
in
Loans
heard not only with
moment
can
soon
I
Stock in Federal Reserve Bank of
"/
a
impossibly difficult in commend¬
ing their proposals to their own
public unlpss we could find ways
_$ 7,916,539.95/
12,473,659.99
Municipal Bonds (New York City)2,982,986.20
fairly
can
Due
•
.
were not less emphatic
should render their task
U, S. Government Securities....:..--..—...
we
and
expressed goodwill
plain sympathy, but also with
a keen desire on their
part to un¬
derstand the magnitude and the
intricacies of our problem, -•
,
we
December 30/44
obvious
|
of
RESOURCES
me
was
however,
that
friends
in
raised, and justly raised
They on their side,
in Parliament.
demon¬
not
terms and with all the
would be
stay in Washington, it
my
when
the
on
as
circle
imr
expound the ma¬
contained
in / the
White
that I
to
or
no
Comparative Statement of Condition
For three days
American dele¬
case.
had
American
Member: Federal Deposit Insurance
*
/
we
wise
Thirty-fourth Street at Eighth Avenue
and
States, that the
amount is insuffi¬
cient and the burden of the
inter¬
est too heavy.
to
or
States.
our
We
that
past performance
we
be
to
explained in
our
command.
We
warned them that precisely those
criticisms which have been raised
for
intended to walk without
we
was
directly
so
basis
we
complex poli¬
these lines that
mom
•very
v.
operate
main
as
come,
though it is imperfectly
satisfactory to us, does represent
a
compromise and is very con¬
siderably removed from what the
every
beginning to fade, but
past
uncertain
|FEDERATION|BANK/AND TRUST
Paper to which the noble and
learned Viscount, Lord
Simon, re¬
ferred.
He would have done it
enough
time to liquidate the
complex war-time arrange¬
ments, or to arrange the onerous
financial obligations which
they
heaped on us.
Finally, a com¬
plaint is made of the terms of the
the
United
terial
world, in particular of
full employment
policy
'proposals have been criticized on
the grounds that they do not allow
us
though
phase of human experience
the
respects than
believed
financial difficulties, to be con¬
that they were temporary
and; manageable and to be told
that
com*
was on
gation heard
the
work? out in practice in its inter¬
national aspects, - The short-term
:
arrangement could
the
the
experience
of
does
some
and
less, it
of tran¬
conditions
Washington;
Congress
opened
the
no
in
beneficial,
vinced
measurably remote public opinion
is
premature and unreasonable until
we have found means
to overcome
of
of
itself to
the
sition
actual
in
a
of
temporary difficulties
the
it may b'e
.
gigantic gift.
therefore,
a
our
size
bandages
even
accepted in the
we
cut-and-dried arrange¬
more
to' believe that the financial out¬
that
pasf is forgotten,
elas¬
As the Chancel¬
immediate
duce to the general prosperity of
all and to the friendship of na¬
relations between even the friend¬
liest and most like-minded nations
if ^c; imagine that -so free- and
the
this
when
the
tions?
depth of misunderstanding
there will be as tq^ what governs
economic
that
climate
what
like¬ ►easy
practice
separate
is
are
program sounds
how natural the
disappointment
The
exchanges such
a
and
tiations; and
ments
though incurred in the
cause, but in our conval¬
They wanted to under¬
common
stand
mean
reasonable
of
the
Exchequer has ex¬
plained in another place, we ran
enough known in
the
Our
wounds,
the
postwar
guiding postwar econ¬
omy along those lines which, in
the American view, will best con¬
not
well
interested ;
were
what
and
lor
him, after he
responded
that
world and
does
to
here into difficulties in the nego¬
our
proposals fall seriously short of it.
But what a gulf separates us from
us to
stable
London
How
time
ticity of action.
open
not
iprt reconstructing
the
able
he
discovered,
was
strate..'
credits, of what amount and upon
what terms, will do most service
This
which
hearts
boldly
the
-
(
in
present weakness but our
future prospects of recovery and
our
intention to face the world
use
of
Ameri¬
able
force ; " at
soon
American;? expres¬
think
2dpd
vein
to
con¬
was
tical
out
hundred
a
ourselves
or
1 favorite:
lay
the
asking .for
try; it is better not to think
way..
I give the American
point of view. Is not it more prac¬
sions—to
would
in
men's
terms
realistic—to
be
side to their being able to
speak definitely about future ar¬
rangements that 'made our task
so difficult in
securing a reason¬
an
that
more
the
to
ican
ciated
'
added,
in
on
sterling area. It was the.
importance attached on the Amer¬
to
it, to
attempt to make
what every American well
appre¬
It is better
.
Those
wanted
in regard to
com¬
between the United States
merce
end
it
and
side
make
this
ex¬
rangements
Americans
up
Thinking of the Future
,
of
the fu¬
on
were
speak definitely and in plain lan¬
guage to their own business world
about the nature of the future ar¬
had sensed from
every sort of in¬
formation
open
to
him: how
>
.
which
as a result of financial aid
Britain.
can
Lord, Lord Wool-
would have allowed
features of the exchange
arrange¬
ments
of
the
sterling area as
fer
to
spoke yesterday for more than a
few days. Neither pride of coun¬
try nor sense of what is fitting
same
of assistance
measure
;
another aspect
emphasis
benefits
pected
draughts
which most
that he would not have
one
tinued
Not all of them have
of
to date,
two
ture
ton, had led the Mission to Wash¬
ington—as I indeed wish that he
deadlier peril
or
to
;
Entirely Agreeable
was
the American
What America Desires
IV;
greater sacrifice of lives and of
imminent
than
more
victim. /
and the
material
wealth; and some of
them have escaped from a
nearer,
than others.
much
war
But there
drive him still further indoors.
life; some have suf¬
fered/voluntarily or involuntarily,
more
a
Terms Not
competition,
probably in his present condition
give him sore throat and
are
wont to
we were
I
be¬
and the
commerce
free
a
with
help that forward inter¬
them
ests
breath of
same
To
is
strength and facing the
the equal or more than
on
comfort
would
not to
quickly as circumstances permit
and that subject to those general
understandings, we should be left
as free as possible; to wofk
fhiiigs
do.
desires
endowed
equal terms that
forthcoming retirement from
of
guish of mind and destruction of
of
world
that, especially
speak in the
open
organized
a
Nor,
it be
would
say,
better than
serves
along those lines, particularly in
terminating the discriminatory
of¬
an
is
see
basis;
direction; and
war,
United
too much of our American
friends that they should agree to
short-term proposals for the early
reconversion of the sterling area
in the
the
ing
multilateral
a
the
the full—-that it
and for¬
commerce
entered
London feel—it
which I shared and
complete outline for the
re-ordering of commercial and
currency policies in their interna¬
tional; aspects and their recon¬
version to peace-time practice is
now available.
Each part is com¬
plementary to the rest.
Whether
it be well or ill-conceived, in the
rounded whole which your Lord¬
ships have before you, the pro¬
posals fall into three parts: a blue
print called long-term organiza¬
tion of world
before
in
less
or
incurred
we
of
to
and
Britain,
renewed
coming in us to respond by show¬
ing our medals, all of them, and
pleading that the old veteran de¬
Some have rendered-more service
than others to the common
cause;
some have experienced more an¬
ties
yet
the situation is different. A
the under¬
associated with it. Since
are
most
venture
think.
needs
strong
safely
that that is how the
American Administration and the
people
were
a
breather, that I won
sympathy. What the United
States
you
American
we
allowed
most
of
assure
Washington to plead their
urgent needs and high deserts.
standings about short-term policy
some¬
and
petitive position, if only
were
in
now
into the
once
begin
other aspects were
ready ; for
proposals,
though details would be taken in
hand as soon as possible. ' Today
not-
plunge at
me
terms of the loan and
plan
by it-
The
where.
•
Let
could
the
involved
The Loan Agreement
,
we
directed towards influencing the
future and not towards
pensioning
the past. At
any rate I can
Congress and the American
people have never accepted any
literal principle of equal
sacrifice,
friction
of
The Ameri¬
can
which_ will
stand
to
must
one
was
easily
one
that
was
yet
causes
as
comradeship, but their
contemporary acts are generally
ill-will between nations, is financial or
otherwise, between all
being viewed in its right per¬ the allied participants.
Indeed,
spective.
I feel sure that serious have we ourselves?
injustice is being done to the lib¬
It is a complete illusion to
sup¬
eral purposes and intense goodwill
pose that in Washington you have
towards this cpuntry of the Amer¬
only |p mention the principle of
ican
people as represented by
equal sacrifice to get all you want.
their
administration
and
their
The
Americans—and
are
they
urgent desire to see this country
wrong?—find a post-mortem on
a
strong and effective partner in
relative
services
and
sacrifices
guiding a distressed and confused
amongst the leading Allies ex¬
world into the ways of peace and
tremely distasteful and dissatisfy¬
(economig order. J
.
'
ing. Many different countries are
The Bretton Woods Program
whole
the
ories
past services and past sacrifice
would not be fruitful.
the
and
When I last had the
responsible
policy
on
which will not
diversity of
way
national
brass tacks.
:
-
a
with
minimize
down
comes
war
interfere
which lies behind
each one's way of solving them.
As
the
Foreign
Secretary
has
pointed out, everyone talks about
international,
co-operation, -but
how little of pride, of temper or
of habit anyone is willing to con¬
purpose
tribute to it when it
in
out of the chaos of
oraer
arithmetically
trying to contend.
Men's sym¬
pathies and less calculated im¬
pulses are drawn from their mem¬
before the British delegation dis¬
covered that a
primary emphasis
Nevertheless I wonder if this first
(Continued from page 127)
Washington than in London, and
how easy it is to misunderstand
149
or
-
un-
THE COMMERCIAL & FINANCIAL CHRONICLE
150
Thursday, January 10, 1946
in Washington, there was not
single Administration measure
of the first importance that Con¬
was
a
Anglo-American Financial Arrangements
relax; for, if we were to relax,
we should never reach equilibri¬
um
and become fully self-sup¬
qualifications which have
been introduced, the full signif¬
various
icance of which cannot be obvious
except to experts, may allow in
practice a workable compromise
between
the
they
certainty
porting within a reasonable period
of time. As it is, the plain fact is
that we cannot afford to abate the
of
full energy
of
strictness
the
export drive or
our
in
economy
our
On the matter of
interest, I shall
long as I live cease to re¬
never so
gret that this is not
interest-
an
free loan.
The charging of inter¬
est is out of tune with the under¬
lying realities.
false
It is based
on
a
any
condi¬
tions of the loan indicate clearly
ticity we wanted. Negotiations of
this character, in which technical
sea
that
requirements and political appeal
must both be satisfied, are im¬
ing,
and the measure of elas¬
wanted
activity which involves over¬
expenditure.
Our task re¬
mains as difficult as it is stimulat¬
and
stimulating
difficult.
as
On
difficult, and could not
have been brought to any con¬
clusion except in an atmosphere
erations,
therefore,
of technical collaboration between
it is
as
That
mensely
the
two
of
than
rather
sides,
technical controversy.
I must
of all
turn to the financial
now
Agreement, and first
to its amount.
In my own
judgment, it is cut somewhat too
fine, and does not allow a margin
for
unforeseen
contingencies.
Nevertheless the
tial.
sum
is substan¬
No comparable credit in
time
of peace has ever been negotiated
before.
It should make a great
and indispensable
the
contribution to
this
country,
abroad, as well as at home, and
to the well-being of our tired and
jaded people. After making some
strength
of
allowance for
minor miscel¬
resources,
it represents
large a cumulative ad¬
ada, and for
laneous
about
we
ought to al¬
bad
straight.
get
can
we
over,
a
as
ourselves in the interval be¬
fore
no
some
balance
verse
low
as
credit from Can¬
a
should
we
reasonably content.
the Americans should
rest
not
anxious
to
hot
too
allow
a
to be set in this, their first
major postwar operation of this
kind, is readily understandable.
The total demands for overseas fi¬
nancial assistance crowding in on
More¬
it may not prove altogether
thing that there should be
sufficient margin to tempt
us
the United States Treasury from
whilst I was in Wash¬
all quarters
our
ington were estimated to amount
to between four and five times
our own maximum proposals. We
naturally have only our own re¬
other
has been
case
recognized
model,
being, with all its attendant
circumstances, a special one. The
Americans might have felt It an
advantage,
one
would
have
thought, in relation to other trans¬
to
emphasize this special
character still further by forego¬
ing interest. The amount of
at
stake
money
be
cannot
important to
the United States, and what a dif¬
ference it would have made to
feelings and to
there it is.
claim
can we
so
of right a gesture
as
unprecedented.
when in
a
A point
was
one
Nor,
an answer.
utterly convinced,
am
comes
matter of this kind
has to take No for
I
response! But
possible ground
no
it
on one
re¬
side. Assum¬
mitigate the burden and
to limit the risk of a future dan¬
embarrassment. We pay no
After that
gerous
interest for six years. "
interest in any year
our
exports have not
no
pay
which
in
restored
been
pay
interest in any year
exports have not
no
which
our
restored
been
I repeat that.
of prewar.
excess
in
which
level
a
be estimated at about 60% in
may
We
to
to
which
level
a
estimated at about 60%
|n excess of what they were prebe
may
our
our
On
put
or
done to
as
-
either ; reject,
not
ing, however, that the principle of
charging interest had to be ob¬
served, then, in my judgment, al¬
most everything possible has been
we
actions
be
pace
No Allowance for Contingencies
terms of the
that
think
I
heading
this
under
balance of consid¬
a
The
analogy.
did
gress
Deplores Interest Requirement
to
(Continued from page 149)
derstood.
I am hopeful that the
any
lack of
volume
In
Barnby;
Lord
j
or
the
but
pectations of others. Many mem¬
bers of Congress were seriously
concerned
going
the
about
towards
a
mously clamoring
aid j
cumulative
for American
and often only with too good
I mention such considera¬
reason.
pot become payable until our ex¬
ternal income, in terms of present
tions because they are a great
obvious
more
Washington
when
than
external income—that is
until
sentiments which determine what
from exports and shipping arid the
our
what is impossible like-^is, in terms of present prices,
50 times that amount. In any year
and highly charged
in which our income frills short of
that great democ¬
this standard, interest is fully and
the daily thoughts
Moreover, the in¬
and urgent individual pre-occupa- finally waived.
stalments of capital repayments
is
one
when
deal
one
turns here.
in
re¬
far. removed; from
are
No
that
atmosphere
so
for
many
troubled weeks will underestimate
Jhe difficulties of the American
statesmen, who
are
strivirig to do
maximum: benefit from this pro¬
vision in the early years.
which
country and for the-whole world,
the
fatal
if the
consequences
Administration
offer
to
were
us
BROOKLYN TRUST
5
have
we.
committed our¬
selves is no more than £13,000,000
a year; that is to say, less than 1%
of
external income, which we
must attain if we are to break
quite; apart from the cost of
even
yvhat Congress would reject.
;
For at
the start the minimum payment to
their practical best for their own
or
arranged that we obtain the
are so
breathed
has
who
one
and
Export
the
Interest Tied to Export Volume
American loan.
think, to remind
Lordships that the maximum
It is relevant, I
During the whole time that I
your
the
whilst
Bank
COMPANY
otherwise;'
perv
or
minimum
charge
cent to which we have been asked
commit ourselves in the early
to
'
I
is only one-fifth of the ancharge which is being
year
nual service
asked from the other Allies. Nonev
of those loans is
subject to
moratorium.
year
loans
which
a
AH the
fiveother
being made
are
,
are
tied loans limited to payments for
specific purchases from the United
States.
hand
Our
is
a
loan, on the other
of money without
loan
strings, free to be expended in any
part of the world. That is an ar- :
rangement, I may add, which is %
entirely consistent with the desire:
of the United States to enable us«
return
fully
as
possible to-
as
multilateral-
of
conditions
trade settlements.
Does Not Repeat World War I
£35,000,000, and that does
rents, political forces and general
ours.
making currently to her
Allies, through the Import;
other
the
pose on
tions
States is
to
year is
being charged in
respect of loans which the United-
Lord Keynes: Volume. That is
very important; I should have said
so. The maximum payment in ariy
;
is possible and
too easy¬ in the complex
world unani¬ atmosphere of
racy of which
of being
consequences
half of what is
value?.
generosity of mind or pur¬
the part of the American prices, is 50 times that amount*
United
States Treasury
cannot negotiators which led to their final Again I repeat, the maximum pay¬
overlook the possible reaction of decision.
And it is not for a for¬ ment in any year is £35,000,000,
what they do for us on the ex¬ eigner to weigh up the cross-cur¬ and that does not become payable
view,
in
quirements
charge to us in respect to the
early years is not much more than
Errors
Your negotiators can,
?
therefore,;
in my
judgment, fairly claim thatthe /ease of JasLtime's war debts I
has not been
repeated.
Moreover, r
dealing«
with, to pay for postwar; supplies f
for civilian purposes and is not—>
as was mainly the case on the pre-1
this is hew money we; are
of;
this:
vious occasion-r-a consolidation
a
war
debt. On the contrary,
loan has been associated with :
new
complete ; wiping I-off ;the: slate:
of any residual obligations fromT
the operation of Lend-Lease. Un- r
der ; the
original Lend * Lease/
Agreement, the President of the
United States has been free to ask'
for future "consideration" of an ■
a
This
undetermined character
un- *
comfortable and uncertain obliga¬
has
tion
finally
been
removed"
from
us. The satisfactory charac¬
ter of the Lend-Lease settlement
has not, I think,
received as much *
deserves. / The;
Secretary of State for India em¬
phasized it in his opening speech ]
yesterday, but it was not, so far ;
as I noticed, taken up in any of
the speeches which were made by
emphasis
it
as
other noble Lords.-
NEW YORK OFFICE:
MAIN OFFICE:
177
Montague Street
•
Broad Street
2<*
;
reference
New York, N. Y.
Brooklyn, N. Y.
•
j Viscount Simon: 1.made express
to it.
•!;: Lord Strabolgi: I mentioned it,
too.
Unprecedented Liberality
I
:
BOROUGH OF BROOKLYN
Condition, December 31, 1045
Condensed Statement of
that there is some part of the set¬
tlement which has commended it¬
342, 344 and 346 FULTON STREET
/
self to
RESOURCES
1
'»
*" '
yV "
Cash
on
serve
1
t
1
'
'
{ £ X* r.
^'A\ « '
,4
>'l* J..- ■ '
...$, 52,002,083.11
U. S. Government Securities
Surplus
189,976,038 81
State and
.
.
35,896,787.87
Bank
Mortgages................
.
500,000.00
$7,000,000.00
.
672,000.00
$
Other Resources
WILLIAM
TABOR, Secretary *
WILLIAM
,
$
Surplus............
8,200,000.00
5,400,000.00
.......
Undivided Profits
1,592,639.77
Contingencies............
647,355.86
business December 31, 1945
Cash on
in
Cash
LIABILITIES
,y
Capital
Hand——2,775,123.42
Banks^__.
21,221,505.00
Bonds
—
N. Y. State and
City,
Bonds
Undivided Profits
31,071,970.62
Due
*
i
4,879,206.25
■
246,000.00
Deposits.............................. 278,403,262.06
Other
Stocks
Bonds
;
1,049,711.33
*..
$295,538,969.02
bonds carried
at
and
$77,110 297 63
public deposits and
or
other
State
are
and
pledged
purposes, as
fr.
Collateral,
Demand and Time.Bills Purchased
Real
Other
Government
845,055.70
1,328,603.87
-
Bonds and MortgagesLoans on
Taxes, Expenses, etc....
r_",—6,460,677.77
^
Estate
—-
Assets
359,279.20
—
Checks Certified
672,514.28
u
—
Unearned
Discount
Reserves
for
;
1,748.60
"""
and
Checks
Out-
950,747.41
standing
'•
*
118,529.23
$70,392,005.81
to secure
MEMfCR
MFMBFR FFDFPAI
NTV7
YORK
CLFAKING
HFSFRVF *Y<TFM AND FHDERAl
HOUSE
ASSOCIATION
DFPOSIT INSURANCE CORPORATION
of Lend-Lease
like
this, in time of peace, for the
of rebuilding the other's
strength and restoring its com¬
petitive position? If the Americans
purpose
tried
have
to
Kings County Trust Company offers to its depositors every facility and
accommodation known to modern banking.
If you are not already availing
The
advantages offered by this institution, the
Company will be glad to have you open an account.
Trust
of
the
MEMBER
FEDERAL
DEPOSIT
criticism
meet
at
making the terms look a
little less liberal than they really
are, so as to preserve the principle
of interest, is it necessary for us
to
mistaken?
be
admitted, but
to
yourself
and
reciprocal aid. Is it not putting our
claim and legitimate expectations
a
little too high to regard these
proposals, on top of Lend-Lease,
as anything but an act of unprece¬
dented liberality? Has any coun¬
try ever treated another country
not
required by Jaw.
the Oldest Trust Companies in the United States
the Amer¬
The
balm
and
sweet simplicity of no per cent is
KINGS COUNTY TRUST COMPANY
Cne oj
covers
surplus and is in
final discharge of a variety of
financial claims, both ways, aris¬
ing out of the war which fell out¬
home by
Con-
tingencies
Official
11,911.47
—
Taxes,
$70,392,005.81
Municipal
7,000,000.00
Depository'-i--.-- 61,136,554.82
Expenses
428,219.25
309,927.23
712,437.50
500,000.00
$
:
-i-w--
Surplus
Government
S.
,
payable Jan. 2. 1946........
It also
war.
ican; military
side the field
STATEMENT
U.
States
t-
•
RESOURCES
United
TUNIS, Comptroller
*
Capital..;;;
Reserve for
CUMBERS, Asst. Sec'y
D. O'BRIEN, Asst. Sec'y
N, BOYLE, Asst. Sec'y
at the close of
LIABILITIES
Dividend
the
President
LEONARD
CARL J. MEHLDAU, Vice-Pres.
ALBERT I.
Jr.i
RICHARD C.
2,420,247.03
$295,538,969.02
Reserve for
WASON,
CHESTER A. ALLEN, Vice-Pres.
1,000.00
.
.
pay
tions
we are
where
except in condi¬
we
can
reasonably
ital instalments
our
not asked
interest
well afford to do so,
Kings County
INSURANCE CORPORATION
?
part of'
this
settlement, relates to the cost of
Lend-Lease
supplies
consumed
during the war, but is entirely de¬
voted to supplies received by us
through the Lend-Lease machinery, but available for' our con¬
sumption or use after the end of
OFFICERS
WILLIAM J.
749,561 88
Buildings..............3,000,000.00
Other Real Estate
the Benches on,
on
the loan which is applied to
3,423;091.03
Loans and Bills Purchased............
,
Undivided Profits
8,070,159.29
Other
Municipal Bonds...........
Securities...... 1
$
Capital
Hand and due from Federal Re¬
Bank and Other Banks
Bonds and
those
this side of the House. No
\
\
indeed glad:
Lord Keynes: I am
*
minimum
and the cap¬
are so
spread that
obligation
in
the
early years is actually less than it
would be with
a
loan free of in-
Volume
THE COMMERCIAL & FINANCIAL
CHRONICLE
Number 4454
163
;terest repayable by equal instal¬
ments/. •:
v>.
»■
•
arrangements Canada and the
United States? And Canada, let
am
add, is not less insistent than
the United States—if anything she
,
my forensic powers to maintain
that position in its most absolute
form against an argument so
pow¬
erful as that, if the Americans
me
Mutual
I
Advantage Stressed
by saying
negotiators
began
American
that
the
had
laid
future mutual advantage
rather than on past history.
But
stress
let
on
one
no
settlement
ceivably
could
what
have
been
except
made
had
who
such
that
suppose
by
measured
and
a
con¬
those
valued
this
country; hasi;endured
accomplished.
I have heard
suggestion
made
that
we
"and
the
should
have
mercial
to
recourse
loan
a
com¬
without
strings.
I
wonder if those who put this for¬
ward have any knowledge of the
facts.
The
body
which
makes
such loans
the most favorable
on
terms is the
Export-Import Bank.
Most of the European Allies are,
fact
in
borrowing, or trying to
borrow, from this institution. The
most favorable terms sometimes
allowed
for instance, in the
'case of France, for the purpose of
clearing up what she obtained
through the Lend-Lease machin¬
as,
2%%
with repayment
30
years,
beginning next
that is to say, an annual
ery,
are
over
year;
of
debt
5%%
that
so
amount
an
equal to 34% of the loan will have
been
six
to
paid by France during the
before we have begun
years
anything at all.
pay
The
nor-
■,mal commercial terms in the Ex¬
port-Import Bank are, however,
3% repayable over 20 years com¬
mencing at once, so that payments
48%-of the loan would
have been paid during the first six
.equal to
in which
Moreover, the
years
.institution
we
limited
share
of
not have exceeded
one-fifth of
of
this
and
them
could
one-quarter
what
we
are
or
actual¬
ly getting.
Nor are they without
They are tied to specific
American purchases and not Hkf
ours, available for use in any part
strings.
•
of the world.
:
'
,
What about the conditions
and learned
insistent—on
more
ing
the
I
liberat¬
our
of
earnings
current
sterling
area.
hope
convince
shall
I
anyhow,
sterling
the
What is the
misled
been
have
Some
adverse
with
balance
asso¬
The noble
Viscount, Lord Simon,
need repine too much.
The way to remain
tional
banker
to
has
Our
expressly emphasized.
direct
part
your adverse balance."
But
that is not the end. I do not think
been
by the fact that that
calculations
the contention that
meet the major
of
we
drawn
be
to
the
is
to
;
,
interna¬
an
allow checks
upon
the
you;
way
destroy the sterling area is to
it and to try to live on it.
prey on
United States is not likely to ex¬
The way to retain it is to restore
ceed
its
during the period more than
about
half the loan.
adverse
our
The rest of
balance
with
is
rest of the world.
of
been
possible
proposal difficult to
May we be informed if the
experts did their best to resist it?
,the
what
war.
It
-
15
as
they
would
comfortable
months
mercial
on
that.
mercial
course,
to
States,
;
this particular condition
Terms Were Resisted
:
Lord
Keynes:
best to resist
They
early
so
giving the reasons why, in
being forced to surrender, the
not
so
surrender
our
I
great.
far that
very
plained
so
it
wander
explained, and I
to
what was, I
and they
are
consistent
with widely different conceptions
of
domestic
policy.
part of
the
our
precise
large
object
loan
a
of
to
was
balance
ternative?
States.
The
balance
is
world,
rest
with
mainly
Canada
will
rately.
so
half
direct
of
with
loan
the
are
1
its^th^^-
;•••■"
bulk
to
the
not
stress
on
than
we
we
can
us
these
•
f•'
'*v~.'•
•
MEMBER
.7
In
satisfy it. I
V
•
OF
RESERVE
relate
lated
before
We
are
this
to
What
•
the
to
balances
the
best
of
to restrict the
do
to
is
-■*;
»
'
'V-i.-V" • V;.
.;•••-
i
Statement
we
countries
tinuing
such
concerned
V:
ly to what is, in the long run, of
much
'
:
?
Cash
have
dollar
a
gold
or
of Condition, December 31,1945
7
V'.
•
'
having
area
a
members
:
U. S. Government Securities.
use
ceptional
.
.
.
.
•
•
•
7
Vaults, Furniture and Fixtures.
Accrued Interest Receivable
-
•
V
on page
NEW
OF
OF
YORK
COMPANY/
CONDITION
6f Business December Ji, IQ4S
.
.
.
.
.
.
*
.
.
»
...
,
.
♦
•
.
.
.
.
,
302,027.95
•
,
.
.
.
.,
.
.7
.
.
.
;
.
.
.
...
.
.
...
.
.
.
-V'-i;
.
...
.
.
.
.
|
;
.
300,000.00
68,115,230.00
,
«.471,406.11
Liability Under Acceptances
Outstanding
.
p;
*
4,416,126.14
7
,
Customers'
•
17^404^062.58
i
,
'
?*V
t
7
.T*;' k"*; A''
r-
;7 342,9'O.40
'
84,758.76
"
187,195.71'
Capital Stock
.
.
.
.
5,000,000.00
,77-
Surplus Fund
,f
.
.
•
".
5,000,000.00
v:;,7;:;,
Undivided Profits
1,336,025.24 $11,336,025.24
.
31,319.60
v
'
$
.
.......
.{
.
•
■ •
.
General Reserves
.
.
.
.
Dividend
6,700,000.00
Payable January
I,
.
.
Reserve for Taxes, Interest and
liabilities
.
.
72,858,181.31
.
7
.
.
LIABILITIES
7
704,063.46
.
"
Surplus.;.
Corporate Bonds
7.
.
$218,680,271.98
958,807.37
$232,384,112.86
Capital
.
2,188,777.36
♦
sec¬
conditions
..
3,085,730.21
.
ex¬
Municipal Bonds
.7".,
10,641,267.77
.
.
.$54,687,596.68
.
\. Other Assets
4,122,736.10
>
-
.
.
.
,
*'• Accrued Interest Receivable
-114,226,976.00
.
'.
*
Cash and Due from Banks
.
1946
.
528,649.56
.
Expenses
1,063,696.67
.
•
100,000.00
•
"
when
.
those
countries
were,
very
abnormally, in
to
us.
tries
a position to lend
We cannot force these coun¬
to
buy only from us, espe¬
cially when we are physically un¬
what
me
on
a
living after
ing
1947
completely
by
.....
Reserve for Contingencies,
Reserve for Interest,
Other Liabilities
Deposits:
,
13,000,000.00
•
Undivided Profits.
/
able to
supply a large quantity of
they require.
It seems to
crazy idea that we can go
.
,
;j
etc.
.
.
.
.
.3,914,001.17
.'.
.
1,284,826.19
Taxes, etc.^
".
.
7- v'
>
.
.
.
■ •
>7
662,583.11
199,220.64
.
•.
,
Other Liabilities
Acceptances: /
Outstanding
United States
Other
Treasury
Deposits
Deposits
Colo¬
$232,384,112.86
United States Government obligations *nd other securities carried in
the above state¬
ment are pledged to secure
Government,State and Municipal deposits,ClearingHouse
the
nies. They will be
and Eire. Is it really wise to base
our
Exchanges, and for fiduciary
lend
goodwill of those countries
us
money
to
and leave out of
purposes as
required by law in the
MARSHALL S. MORGAN
.
>
1
l,:.
financial .policy on the loyalty
and
...
.
.
.
372,941.07
204,765,283.32
.
President
Vice-President and TViaiurer
federal
federal
deposit
reserve
Securities carried
at
$41,798,951.18 in the above statement are
powers, to secure public monies
pledged to qualify for fiduciary
as
required by law, including $39^11,706.92 of United States
Government
War
Loan
Deposits, and for other
purposes.
of $64,902,423.34.
Street, Philadelphia 9
Member
member
sum
KENNETH G. LE FEVRE
j-
135 South Broad
$218,680,271.98
206,623,481.75
Crown
and
1,875,711.01
.
:.
159,291,463.37
wanting us to
repay them. Two-thirds of what
we
owe
to the sterling area is
owed to India, Palestine, Egypt
India
.
.
2,248,652.08
.
.
47,332,018.38
,
terms
from
.
.
>;Vv' Less Amount in Portfolio
"
"
borrow¬
vague
on
513,676.12
........
MAIN
OPFICfi:
Branch
Offices:
345
30
BROAD STREET, NEW YORK
Madison Avenue
i
51a
Seventh Avenue
system
insurance
corporation
member
federal
deposit
insurance
corporation
and
152) ; [*(
CLEARING HOUSE ASSOCIATION
Federal Reserve Bank Stock
'
...
$ 47,645,326.58
♦
.
..........
r
only of
.
*
Prepaid Taxes and Expenses.
to us, save in the
wartime
.
'..V
Other Assets
ondary
.
.
:■
of the
Idea
This arrangement is
gold standard
MEMBER
T R U ST
Loans and Discounts
.
Fidelity Building Corporation
Real Estate Owned
•
dollar deficit.
A Crazy
:
7
t
Investment in
a dollar pool which is a defi¬
pool, responsible for the dollar
expenditure not only of ourselves
other
1
:
48,289,884.75
Mortgages .'
-
cit
the
&
-
Close
*
Other Investments.
us
with
but of
";P7':y " 7-:' *
State, County and Municipal Securities
sur¬
leaving
arrangements,
Y.v'"''
Hand and due from Banks
on
Investments:'
plus, such an India, and South
Africa, would prefer to make their
own
particular manifestations
former
(Continued
^U.S. Government Obligations
Loans.;.
con¬
longer than
the danger is that these countries
which
our
conclu¬
laissez-faire
of new york
assets
arrangement
that?
Indeed,
an
the
FEDERAL
BAN X
'•
satisfactory if we can main¬
tain the voluntary wartime system
into 1947.
But what hope is there
the
false
*The continental"
?
••
Organized 1866
very
of
denounce the
and
in the
RESOURCES
have not yet got and have not yet
been entrusted to us.
It will be
.
and
conclusion, I must turn brief¬
Trust Company
not
of balances
use
in
of
attack
its
and
some
early
as
Fidelity-Bhiladelphia
ability.
our
undertake
we
that
very
sions of unrestricted
SYSTEM
accumu¬
the spring of 1947.
quite free to settle
left
pretend
were
;
7:; Policy >v.:' v'..,'*
•'
importance in
great step for¬
goal of inter¬
premises
false
they are re¬
quired to maintain equilibrium
and
by
forbidding them when
they are not so required. They are
utmost
who
who
field to
tective devices when
the
a
the
economic
al¬
proposals
at^first.
••• •
»<%■
equilibrium by
expressly permitting various pro¬
of
towards
those
us,
of
STATEMENT
giving away there. It does not
are
attempting
pay,
money
of
maintenance
a
order
amidst
national diversities of policies.
It
is not easy to have patience with*
cur¬
rency and the commercial propo¬
sals
are
devised
to
favor
the
to release the current
.the sterling area after the spring
of 1947. I wonder how much we
are
payments,
Exactly the con¬
the
is
by common agreement along
newly-trod path, not yet pion¬
eered, I agree, to a definite final
destination, but a newly-trod path
which points the right
way.
We
of
Both
It
al discussion to have
proceeded so
Nor is it true to say
is prejudiced.
trary is the case.
an
a
inter¬
are
blind
far
ex¬
trading
planning of the volume
imports, so as
having agreed
earnings of
our
for
State
of our exports and
have also several other critics
as
laid
true,
that
purchasing
fered with.
Attitude Toward Commercial
given not only the condition
means
to
of their
it may ^oi^id
the
fore, to provide us with ^dollars
mainly for the sterling area. : We
but also the
basis
caricature
sepa¬
.
is
agreeing to
they have not got
and buy only from us and one an¬
other goods we are unable to
sup¬
ply,
Frankly this is not such a
lend
area.
object*- of
alternative
owe more
the
on
adverse
rest
dealt
the
ready
United
sterling
very
of
the
The
sists of countries to which
these
a
the
the
the
be
The
of
realities
build up a separate economic bloc
which excludes Canada and con¬
practicable.
with
complete
the
really grasp the nature of the al¬
having
About half of it would be
adverse
of
a
have
make
arrangements
very
on
of the
That was, that
case.
only be based
misapprehension
vulnerable
a
is
of
unique accomplishment, I venture
to say, in the field of internation¬
by Soviet Russia
clearly conform to this con¬
say
out
wisdom of Adam Smith.
ac¬
cepted both by the United States
It
laissez-faire
a
perience and modern analysis, not
to defeat, but to
implement the
of America and
to
of
attempt to use what
have learnt from modern ex¬
we
Proposals
must
with
Adam Smith
Here is
terrain
which the authors hope to see
commerce
working
national
passing
am now
feel,
the
at¬
Implements Wisdom of
balance
position, for apart from the
question of debt, do the critics
I
from
first
forces.
ward
can
be
difficult in any circumstances
to carry on the arrangements be¬
reasons
eventual
equilibrium in the in*
precise, as I would
have preferred many other
points
to be less precise.. Such a view
very
yond that for the
that
plans "do not
international
The
of
consequences
to preserve
pre¬
ex¬
would
believe
the
comprehensive
system which pays no direct re¬
gard to the preservation of equil¬
ibrium and merely relies on the
of
ternational
the
on
ferred it»less
was
have
I
Act
agree with the noble "and learned
Viscount that I would have
date but I
am
magnitude of
seri¬
as a
Final
loan, although I
blot
ous
did. their
a
Woods,
country.
ample,
regard
the
freedom
best suited to the predicaments of
this
that
not
in
represent
and
safeguards against the disastrous
representatives have been
in
maintaining
the
principles and objects which are
have
do
and
they
tempt to combine the advantages
of
successful
and
I
that
elaborate
your
situation, but, nevertheless,
the underlying situation is as I
described.
currency policy,' al¬
must not enlarge
working out the Com¬
Policy PRper, to which, of
this country is not com¬
dition.
the
resist.
with
the
United
States and, indeed, the outstand¬
ing characteristic of the plans is
In
Bretton
little
a
to
relationship
and
though I fear I
handle
could have
we
than
more
a
to
more
know that
Viscount Simon: The noble Lord
speaks
before
have
'
as
were
the
;
privileges and opportunities
soon
151
majof importance — namely, the
blue-prints for long-term com¬
area.
mitted, unless a considerable part
large of the world is prepared to come
have, into it and not merely the United
so
on
have to
we
their past
not for repaying
necessity for
The
been based
a
accumulations.
loan?
a
condition very difficult
to resist, for the main purpose of
a loan of this magnitude was for
the
precise object of liberating
the future earnings of the sterling
area,
than
more
should say: "You are
going to bor¬
row all this
money by impounding
the earnings of the
the
noble and learned Viscount, for I
have not yet finished.
This was,
other
Loan Conditions
ciated with the loans?
is
our
resources
are
reasonable
nothing
pay
afraid it would take
our
■
■
THE
*
n
152
that the
Americans have felt the multi¬
lateral system was the only sound
basis for any arrangement of this
kind.
Secondly, all the most re¬
sponsible people in the United
States, ' and particularly in the
State
Department and in the
Treasury, have entirely departed
from the high tariff, export sub¬
sidy conception of things and will
do their utmost with, they believe,
the support of public opinion in
the opposite direction.
That is
why this international trade con¬
vention presents us with such a
tremendous opportunity.
For the
first time in modern history, the
United States is going to exert its
full, powerful influence in the di¬
rection of reduction of tariffs, not
only of itself but by all others,
license for public
liberty,, are now
spending their later years in the
service of the State to walk back¬
wards and resurrect and re-erect
the idols which they had played
part in throwing out of the
-market: place.*
Not
so.
Fresh
tasks now invite.. - Opinions have
been, successfully changed.
The
work of destruction has been ac¬
«ome
been
complished, and the site has
cleared for a new
structure.
Method of Repaying
.
United States
Questions have been raised—
rightly and reasonably raised
—about
the willingness of the
and
United States to receive repay¬
ment hereafter.» This is a large
;
reason
very
v
A World
is a problem of
economist and
this
Thirdly,
Problem '
which today every
quite
publicist in the United States is
acutely
conscious.
Books
on
economics
are
scarcely written
In¬
if in the next five or 10
the dollar turns out to be a
currency,
seldom will so
many people have been right.
-It
.is a very technical matter, very
deed,
years
E. I Ada
prominent in people's minds—the
United States is rapidly becoming
Reconversion
and
number
of homes
poration
high-living
and a high-cost
country. Their Wages are two and
a half times ours.
These are the
any one
year,before the
vvas
announced on
classical
•<
;
We
dis¬
charged from
Therefore, much of these poli¬
seem to me to be in the prime
of
our
country,
little
us
regain
New
While
.
enabled
1941
to
us
sights to overcome the
Nazi and Japanese military might,
With that imagination and de¬
the
our
termination
we
mobilize
can
the housing we require.
Because of the critical
York.
in the
our
here at home to produce
resources
,
need
I
appointed
Executive As¬
housing expediter. He will be em¬
powered to use every agency of
any
source that
and sell your goods in
sistant
from
to
the
the
Admissions
Officer of the
they can be
The bias of
the policies before you is against
bilateral barter and every kind of
discriminatory practice.
The
market where
to advantage.
E. J.
and every; re¬
government
to
government
,
the
of
emergency
an
break the bottlenecks and to pro¬
Ade
the
duce
Na¬
United
appointed
source
materials
for
housing.
at San Francisco. The government is determined to
He was formerly associated with give private enterprise every en¬
the John Price Jones Corporation, couragement and assistance to see
that the houses are produced—
Public Relations Consultants.
and produced fast. Where private
enterprise is unable to provide
tions Conference
They would separate economic blocs and all
the friction and loss of friendship
their fault and not
ours if they fail to solve it.
They they must bring with them are
expedients to which one may be
would acquit us of blame—quite
emphatically within their past ex¬
driven in a hostile world, where
different from the atmosphere of
perience, but not so easily the
trade has ceased over wide areas
10 or 20 years ago.
They will
'subject of future prediction.
I
to be cooperative and peaceful and
consider it their business to find a
A public offering of 100,000 50am afraid I must content myself
where are forgotten the healthy
cent
way out.
Fourthly, if the problem
par
common
shares and
rwith a few headlines.
First, it is
rules of mutual
advantage and
70,000 55-cent cumulative con¬
not a question of our having to does arise, it will be a problem,
equal treatment.
But it is surely vertible $1 par preferred stock of
for reasons I have just mentioned,
pay the United States by direct
Above all, Electronic Corp. of America was
of the United States vis-a-vis the crazy to prefer that.
exports; we could never do that.
this determinatoin to make trade
made Jan. ,7 at prices of $5 and
Our exports are not, and are not rest of the world and not us in
truly international and to avoid
$10 per share, respectively.
likely to be as large as our direct particular. It will be the problem the
establishment
of
economic
of
the United
States
and -the
The 70,000 preferred shares and
imports from the United States.
blocs
which
limit
and restrict
50,000 shares of the common stock
The object of the multilateral sys¬ whole commercial and financial
commercial
intercourse
outside
were
offered for the account of
arrangement of every other coun¬
tem is to enable us to pay the
Fifthly—and perhaps this is them, is plainly an essential con¬ the company, while 50,000 com¬
United States by exporting to.any try.
dition of the world's best hope,
the consideration which is least
mon shares are for the account of
part of the world and it is partly
regard it
an
im¬
same
essential¬
upon
anything else.
about
scarce
the
You can( draw your
ly depends.
sold
clear
emer¬
Army he was
system
a
which British commerce
any
is
an
was
have
is
trade, which
you
raise
Victory
Loan
for
Greater
perity and prestige in the world's
commerce:
They aim, above all,
at the restoration of multilateral
suits
of
rector
full measure of pros¬
a
war
It
is
this
utilize
must
back in
that
served
as
Executive Di¬
though we may like some parts of
them. They are calculated to help
in
constructed
million.
a
that
-
greatest
agination, the same determination
Service,
the
interest
The
emergency method of solution/
recently
cies
farms.
problem which calls for
gency
dent. Mr. Ade,
in Britain's Interest
than
therefore
which in the long run
al
the
on
less
methods
by
internation¬ Jan. 5 by E. W.
equilibrium will be restored. V; Myler, Presi¬
historic,
Delays
(Continued from page 148)
appointment of E. J, Ade
as Director of Sales and Public Re¬
lations of the Myler Plastics Cor¬
^The
a
supplies
subjOct to which I have given' a
great deal of thought, but I shall
not have time to develop it fully
today. I am not, as a result,
so
worried as most people.
that
for
Truman Discusses
Myler Plash'cs
Anglo-American
(Continued from page 151)
other currency
and commercial
doctrines which mistake private
Thursday, January 10, 194(5
COMMERCIAL & FINANCIAL CHRONICLE
as
Electronic Corp. Stocks
the necessary housing/it becomes
Publicly Offered
ment to do
•
Anglo-American understand¬
ing, which brings us and others
together in international institu¬
tions which may be px the long
an
STATEMENT
CONDENSED
run
the
thing
of
BANK
FIRST NATIONAL
more
in
lately
in
by
those of peace,
experience that
countries
two
work
can
to¬
gether. Yet it would be only too
easy for us to walk apart.
I beg
those
At the Close
step towards some¬
comprehensive. Some
the tasks- of war and
learnt
us,
have
our
LOUIS
ST.
IN
first
more
of Business, December 31, 1945
look askance
who
these
at
plans to ponder deeply and re¬
sponsibly where it is they think
they want to go. -
;
stockholders.
.
;.It was announced Jan. 8 that the
offering has been over-subscribed
and'
thq
subscription books
},
(dosed;
Edward
•
522,000.00
Bank/
;
Banking House, Improvements, Furniture
and Fixtures
Other Real Estate Owned
Customers' Liability
with
contact
close
you
—
the
people whom they serve.
From
personal experience, I
know that contact with the people
public
tell your
public servants your own views
concerning the grave problems
facing our country.
In a free
country the voice of the people
home
back
helps
every
I urge you to
servant.
be heard.
must
Proceeds received by
:
the com¬
will be used for the payment
bank loans, financing the mov¬
gress.
of
tion
ing capital.
Resumes in Boston
■!.
with the Con¬
I seek no conflict
pany
I earnestly desire co-opera¬
Congress. Orderly
with the
procedure in the Congress is in¬
dispensable
to
the
democratic
process.
But orderly procedure
does not mean needless delay.
Stable world relationships re¬
C. S. Jeffrey
BOSTON,
BOSTON, MASS.—Edward
Herlihy has resumed the invest¬
and Treasurer
of the new
firm.
*
49,573.80
spirit
$524,091,820.14
Statement
as
OHIO
LIABILITIES
$ 10,200,000.00
.
7,200,000.00
..
*
;
.
■
•
,
Contingencies r ;' •
'
'
Payable February 28,1946
Reserve for Taxes, Interest, etc.
Unearned Discount
V.
'/'•'/•
;
,
v
Reserve for
.
,
7,168,416.90
500,000.00
Dividend Declared
.
240,000.00
1,593,257.38
395,025.23
—
1
Banking Premises Occupied
Customers' Liability Under •
,
.
Demand
Deposits
Deposits
52,915,626.23
105,64^,117.32.
,
U. S. Government Deposits
Total Deposits
*
"
*'
: •
$524,091,820.14
'
-—~-~-
—
Acceptances
—
Resources
LIABILITIES
Capital Stock
—
Surplus
Undivided Profits
Total Capital
2,028,572.41
Funds
—-
for
for
Reserve
for
—
Dividends Payable
Taxes
Interest,
etc.
—
--—
———-
Other
S.
138,805.31
addition
Member Federal Deposit Insurance
Corporation
24,235.83
—
209,818,296.88
52,638,806.44
179,594.15
—
—
$280,934,596.32
TOTAL
*In
to
the
loans
outstanding
and
in
the
discounts
as
amount of
Shown we have unused loan
$8,056,238.00.
trust moneys on deposit in the Banking
Department, which under the provisions of the banking law Section 710-165
of the State of Ohio is, a preferred claim against the assets of the bank;
»»This
includes
$3,356,680.14
of
Deoosit Insurance Corporation
Member Federal Reserve System
Member Federal
;
plain
people with
it free
courage
faith.
Let
us
justify this heritage.
.
Thornton, Mohr & Co.
Formed in
Montgomery
MONTGOMERY, ALA.—Thorn¬
ton, Mohr & Co., has been formed
Building, as successors to
Mohr & Co. Principals of
the firm ; are J. Mills Thornton,
and
Sidney J.
Mohr, Jr. Mr.
Thornton
operated a municipal
King,
,
business under his
own name
from
1921 to 1942 at which time he be¬
Government
Liabilities
commitments
1,193,161.82
Acceptances
♦♦Commercial, Bank and Savings
U.
r 14,028,572.41
2,823,123.48
90,000 00
——
—
—
,
and women who made
Bank
6,000,000.00
.
1946 in a
irresolution.
with offices in the First National
' $6,000,000.00
'
Reserve
Reserve
Reserve
men
———
———
—
Liability Under
DEPOSITS:
Broadway f Locust * Olive
133,533,580.43
17,822,118.73
63,661,689.56
360,000.00
3,846,074.52
24,235.83
691,984.55
$280.934,596.32
TOT AL
General
494,514,707.35
1- - - - - -
.——
2,135,297.35
1
$335,956,963.80
—-—
_ __
Other
$ 60,994,912.70
;
Bonds
Other Bonds and Securities
*
Loan s and Discounts
j ^
Federal Reserve Stock <;—,
States
United
145,115.93
•
Liability a/c Letters of Credit, Acceptances, etc.
Other Liabilities
were
RESOURCES
Cash and Due from Banks
Surplus
Undivided, Profits«
leadership in
this country great and kept
of December 3 It 1945
and
.
drift or
of
The
CINCINN AT" I,
.
shirk
We cannot face
other.
4,227.39
/■
Capital Stock
cannot
world. The problems
of our economy will not be solved
by timid men, mistrustful of each
2,135,297.35
1,326,350.83
*
C
Other Resources
We
the post-war
Acceptances, etc.
Accrued Interest Receivable
Time
period they will have the benefit
of
The offering was
a/c Letters of Credit,
Overdrafts
•
Congress
this
During
home.
at
now
the
of
members
The
are
Army Air Forces.
7,273,423.76
,
Stock in Federal Reserve
:
during the war.
977,002.00
Other Bonds and Stocks
•
job which is a challenge as
stimulating as any goal we set
—a
353,903.30
111,652,346.55
Loans and Discounts
;
job for private enterprise to do
a
Co.
quire full production and full em¬
MASS. — Charles S. ployment in the United States.
Jeffrey, Proprietor of R. W. Cor¬
There are voices of defeat, dis¬
ment business of Edward Herlihy nell & Co., has formed C. S. Jef¬ may, timidity among us who say
These I chal¬
& Co., from offices at 53 State frey Co. with offices at 79 Milk we cannot do it.
Street. For the past three years Street to continue his investment lenge. They will not guide us to
business. Mr. Jeffrey is President success, these men of little faith.
he has been serving in the U. S.
$109,603,260.27
290,194,434.89
Cash and Due from Banks
U. S. Government Securities
.
Heritor & Co.
responsibility of the govern¬
so.
But it is primarily
made by a syn¬
I
fully appreciate the
many
dicate composed of First Colony problems
which Congressmen
Corp.; Hirsch & Co.; Simons, Lin- face. They have done a great* war¬
burn &
Co.; Childs, Jeffries & time job under most trying con¬
Thorndike, Inc.; Coburn & Mid- ditions. The complicated return
dlebrook; Grubbs, Scott & Co., to peace time has increased their
and Irving J. Rice & Co.
difficulties.
4.
ing of the company's plant to a
new location, and general work¬
RESOURCES
the
came
vice-president of the First
National Bank of Montgomery
in
charge of the Bond Department.
Mr. Mohr
Mohr &
which
service.
was
a
partner in King,
Co., from 1935 to 1942 at
time
His
he
entered
firm
was
lished in March of 1945.
military
re-estab¬
[Volume
163
Number 4454
THE COMMERCIAL & FINANCIAL
CHRONICLE
153
America for All Americans
(Continued from page 127)
ful
is
tudi mere
who
more
or
room
would
millions
ior
not
the
be
hungry
overcrowded. But many Amer¬
have not yet settled down
icans
to
the
task
ahead
that
the
haf> been won.
Soldiers back from victory
are
now
war
,.
ica.
here,
or
against
his
land
and
black,
are
There
are
small membership.
a
demagogues here seek¬
ing to convince the ignorant that
there is a pure race in America—
that all other
must be
races
subservient to
kept
mythical master
a
race.
But
we
which
When
farm.
plantation
the
save
.
sold
sharecropper
his
own
eroded
an
credit
on
families
to
50
—
white families and 50 Negro fam¬
ilies.
Their
average
net worth
$24.
They were given noth¬
except
an
opportunity * to
was
ing
free America.
a
families have
could
1
was
—a
battles
we
In Missouri
not cast down. I Our
won
crime
against
people on the
safeguard the economy
sailors
are
and
a
Every farmer hopes to
100
to
the
save
of the nation.
own
land
and
children
country.
thrive in
soldiers
his
commits
his
denied op¬
are
they were not born
because they belong to a
church with
Whoever allows
we
America
erosion
thousands
on
farms, but we must save the
precious top soil all over Amer¬
because
or
stopped
the
save
of
land
portunities because they
to
only started. Soil
been
Good joos
Some men and
hard to find.
women in
land has
has
The battle
deteriorate
unable to find homes.
are
land.
few years
Today
later—most of these
a
net worth of
over
not be won.
They
built landing fields with incred¬
ible speed thousands of miles from
$2,000, they have husbanded the
soil, payments on their farms are
not in
default, and the United
America.
.
States
They turned rocky coasts
into safe havens for Allied
ships.
Beginning in 1941
■
survey parties
explored the
possibility of an
India-China Highway, which was
heeded to help win the
experts agreed that it
The
war.
was
im¬
an
possible undertaking. But sons of
American
pioneers,
white
and
black, Christian and Jew, hacked
their way through
jungles, over
successive
ranges
of
jumbled
fever laden
mountains,
through
swamps; fought tigers, headhunt¬
ed,
and Japanese soldiers, and
built the Ledo Road.
Nothing ex¬
cept defeat was impossible for
our
fighting men.
Neither was
problem
any
too
difficult
for
those who
won the battle of
pro¬
duction here at home.
Americans,
of
many
miles
more
;
whom
traveled
daily
to
20
and
or
from
their jobs, built 2V2 million army
trucks, 600,000 airplanes, 90,000
tanks, 41/2 million machine guns,
and
Government
money
will
the deal.
on
In Alabama,
in
such
committee
a
:
to
artificial
barrier
rights
in
A man's
not dependent upon the
are
color of his skin, his birthplade or
the name of his church.
by
up
without
em¬
fair
until
won
to
all
secure
of
the
given
are
an
education,
and
medical
well
housed, until
are
of
food,
proper
get
fertile
than
who wants
man
job and
a
in the world.
and
our
and
man
can
"I
a
am
a
I
or
than
Amer¬
an
I
or
am
those
I
a
am
things.
living in
a
'■'.y,'/:"3v:,
"Violence
in
country is
Catholic.
of
any
free world."
privilege,
am
Jew,
shall
thy
destruction
no
land,
within
be
more
wasting
thy
nor
borders;
but thou shalt call
gates,
Thy
and
shall
sun
neither
thy
no
more
Dowdall & Co.
Fair
Employment PracticevCom-*
million rifles during the
Every American had a stake
war, and every American
Bond Traders Club of Seattle,
& Co.
;
a
share
The
in
the
people
of
the
peacetime
They believe in world
hold
.
.
everlasting
of
light,
and
the
forever?*^-' W.
,
Harry V. Vonderhaar, Westheimer & Co.
elected
President
Bond Club at
to
succeed
a
Cincinnati
the
was
Stock
and
meeting of the Board of Trustees
Clair
Other officers
of
S.
Hall,
elected
Clair
S.
Hall
Franklin
were:
Co.
&
O.
Love-
land, Field, Richards & Co., First Vice-President;
Frederic
Latcha,
Vice President;
Secretary;
George
Joseph
Treasurer.
&
Eustis
Co.,
Second
George Phillips, Gradison & Co.,
Vasey,
.'VTV.;:''V:
H.
B.
Cohle
-''•
&
'•
■>
Co.,
' '•
Harry
bomb, and
of
age
Harris Trust
Organized
;.■&
as
andSavings
N. W. Harris & Co.
1882—-Incorporated
;";V
December 31, 1945* '
*
abundance
against
in
a
new
era,
can
in
:
Resources
Cash
U. S.
on
Hand and Due from
Banks._$153,504,384.44
78,620,378.39
U. S. Government Bonds and Notes__
•
Treasury Bills and Certificates-.
134,090,271.66
State and
Municipal Securities.:
31,652,403.77
Qther Bonds and Securities.
.
48,229,774.15
Loans and Discounts
by
play
which
our
L;;;v
can
save
rich
our
we can
for his
soil
together
in
peace.
V
annual
wage.
We
have
only
scratched the surface on
housing.
In many towns there
are decent
homes entirely surrounded
by in¬
decent slums. Let the Ida B.
Wells
journer
Chicago
and
K.}■$]
.
.
Customers' Liability
A
as
,
on
Acceptances.....
.
Income Accrued but Not Collected.......
.
,
V
So¬
Truth
and Letters of Credit
999,624.10
wealth
begins with
2,259,654.71
S584.618.587.63
|>
Liabilities h
398,352,051.06
..
,
.
.
3,600,000.00
1,209,747.35
10,800,000.00
$2,826,963,072.24
LIABILITIES
.
r
'/-y S Deposits........
... .
Acceptances..,..;,,.
.
,
Capital
$ 8,000,000.00
Surplus
|
7,269,446.67
■,
12,000,000.00
Undivided Profits -i.
,
Reserves for
•;
L.'LVv. L. v.:..
$2,646,721,523.86
/.,..
1,251,371.35
.
.,....,........
Reserve for
Taxes, Interest, and Expenses.
Reserve for
Contingencies L....,..,....
.
13,207,331.03
,
$ 22,373,976.69
Contingencies, Taxes,
Interest, Etc.
;
-
11,238,650.70
...i...—
Acceptances and Letters of Credit
Demand
Time
AO
'
2,373,976.69
f
999,624.10
Deposits^.$516,661,417.03
Deposits.,
33,344,919.11
.•
550,006,336.14
18,105,515.74
Earned:,
60,000,000.00
;
...$584,618,587.63
60,000,000.00
Surplus...................
Total
205,913.09
Capital Stock.............,.......,..,.,,
•
i'i...
Undivided Profits..,.....,..,.,...
J142,910,'80'0V of
United
States
Government
$300,000 of State and Municipal Securities are
27,471,417.17
obligations
$122,640,437.98 of United States Government Deposits
3.77,925,21 of Trust Deposits, and to qualify foi
and $18,-
fiduciary powers.
'
United States Government
$725,513,549.99
are
Member
obligations
pledged
and for other purposes
as
of Federal Deposit Insurance
end other tecuritie* carried
to secure public
required
or
apd trust deposits
permitted by law
Bay Victory Bonds
Sfimbitr Ftderui [hfivsit Inxttronct Corporation
and
pledged to secure
$2,826,963,072.24
an
nation's
\
52,615,154.15
>
.
Banking House..w..;.......,
at
the
Homes in Detroit
example for the rest
of the
country that good housing
and good
citizenship go together.
serve
.
Stock in Federal Reserve Bank...:.;.,..,,;,
.
Income Collected but Not
We have made a
start, but we
have not gone ahead
fast enough,
or
far enough.
We have yet to
achieve full
employment at an
in
600,000.00
Acceptances
532,083,248.34
1,821,033,424.67
.
from
live up to the
opportunities, beyond all
dreaming, of the atomic age, that
Protestants, Catholics, and Jews,
native-born negroes and
whites,
and all of the
foreign born can
dc-al justly, one with
another, and
Homes
..
,............,.. ^
great
live
$
.
United States Government Obligations;,.,.
provide housing, that
erosion, that
on
en¬
our country who
performed wartime miracles know
we
Cash and Due from Banks.,..,
Loans and Discounts
I
;
;:
can
134,662,096.41
| Accrued Interest and Other Resources
Other Bonds and Securities..........
V
The people of
we
I.
'
great good.
that
I
,
part
the
destruction, but
^Customers' Liability
of Condition ^December j/, 7^5;
RESOURCES
private
of the atom will work, not
ergy
for man's
'
pro-
armies, private arsenals, and un¬
regulated private use of atomic
We
1907
BAKEIS th«st BUiLDisa. CHIOAPP, ,v;:
Federal Reserve Bank Stock
speeding the use of atomic energy,
under strict governmental
control.
For
we
are
materials.
Vonderhaar
Statement of Condlitioh
who
Statement
A
'
\
peace
treasonable
-
CINCINNATI STOCK AND BOND CLUB
They shall inherit the land
OF CHICAGO
of the United States wish
to pro¬
peace by international con¬
trol of the atomic
an
•
days
thy mourning shall be ended.
Trust Company
and
mote
mote
.
shall thy moon withdraw
fight Russia"; or
other country.
The people
some
■
:
•
"We must
those
/
Allison-Williams
itself; for the Lord shall be thine
National Bank
task
accomplished. They are
ready and anxious to get the job
done on the St. Lawrence Water¬
way, the Missouri Valley Author¬
ity, and a real Full Employyment
and
•
.
(Continental Illinois
United
cannot be
say:
•
•'
:"
civilians, who
have met the terrible
challenges
of this
war, will not believe that
Bill.
i
Co.
,l.
and
constructive
Wash.: J, E. Jones, Hartley Rogers
^
Twin Cities Bond Traders Club: Kermit Sorum,
victory,
States, soldiers
any
Tony Bottari, Sutro &
:
"
1
.
in The
must
;
San Francisco Bond Traders Association:
Company.
down;
eous.
a
>
-
Praise.
go
nation's
needed
..
Joseph H. Weil,'Weal
.
Thy people also shall be alL right¬
We
'
-
,,
thy walls Sal¬
vation
Job-seeking Negroes have been,
and are being, denied jobs because
they are Negroes. Not only is this
unfair, but it is damaging to the
business.
Schas, Bullington-Schas
Fritz
Club:
•
■
can
being, who
free American
a
am
say
:
••
Security Traders Association of New York, N. Y.: T. G. Horsfield, Wm, J. Mericka & Company, Inc.
c
■
'
\
Investment Traders Association of Philadelphia: Samuel K. Phil¬
lips, Jr., S. K. Phillips & Co.
V
"
Bond Traders Club of Portland, Ore.: Edward E.•« Gutherless,
Blyth & Company, Inc.
Security Traders Club of St. Louis: Wm. F. Dowdall, Wm. F.
that every
in this
also
am
our
see
human
a
proudly
more
I
woman
as
I
It is
duty, to
treated
job
a
•
New Orleans Security Traders Association:
& Arnold.
'
their
chance to advance
a
& Co.-
are
our sons' farms
fathers', until race riots are ugly
legends of a distant past, until
every
Memphis Security Dealers
opporounity
until they
care,
more
people
(Continued from page 135):
/
Roosevelt.
There cannot be full
America
heard
stand
must
the way of that freedom.
D.
and
employ¬
ment. The fight against
planners
of World War. Ill is on. The bat¬
tle against bigotry,
oppression, and
greed is our battle. It will not be
on
Every citizen cherishes his right
vote, and no poll tax or other
set
was
Franklin
ployment
Negro,
at fair prices, and
terms which they can meet.
NSTA Notes
States
ployment Practice Committee
should be, and must be, made per¬
manent.
1.058
buy farms
United
This Committee has been used in
hundreds of cities. The Fair Em¬
ican.
Negro families. They are in¬
creasing their worth at the rate
of $500 a year. This is only a be¬
ginning. More farmers should and
must
be
given opportunities to
the
President
farms have been sold through the
Farm Security Administration to
12
War.
make
mittee
Corporation
154
Co¬
Dominion/Provincial
anent
ordinating Committee composed
of Dominion and Provincial Pre¬
miers for the
By BRUCE
»
WILLIAMS
proceeds in a thor¬
oughly healthy democratic fashion. The Dominion Government made
its own proposals at the Dominion/Provincial Conference which is
due to reconvene on Jan. 28, and now the Province of Ontario re¬
sponds with an alternative scheme which, in view of its strong stand
on provincial autonomy,
will find warm support among the oth
The evolution
Dominion of Canada
of the
provinces.
from indicating
Far
of
bility
a
broad detail of welfare
(h) The Dominion Government
to provide U. S. exchange for the
succession
and
corporation
QUOTATIONS
Inquiries invited with re¬
subsid¬
Government.
sub¬
Alternatively, the following
missions are made:
end valua¬
bonds.
Canadian
of
Copies of
a
pamphlet
con¬
taining 350 quotations are
available
to
banks,
insur¬
companies and other
institutions upon
corporation tax fields;
have sole authority to impose
income and
and
terned
that
on
issued
Dominion
only
but
rates
form
one
Thus
in
of
development
sec¬
tions of the country alive to its
to cooperate
importance, ready
to evolve
mutual
a
national plan to the
benefit, but not pre¬
to
submit
supinely
to
there is for
central
governmental dictation.
To
the
of
Turning to the market for the
the
remove
complaint
past week it emerged more clearly
Quebec, as the home of the ma¬
jority of corporation head offices,
benefit unduly from the business
done in other provinces, it is sug¬
gested that corporation taxes be
Dominion Securities
than
tion of
allocated
effected in
Fund
40 Exchange Place, New York 5,N.Y^
ute
risk
10-year
himself
by
maintenance
to
Provinces.
reorganization
perpetual 4's made
a perm-
advance
taylor, deale
&
64 Wall
Company
GOVERNMENT
free
spectacular
strongly in de¬
funds
bond
market
unprecedently
sweeping price
V?
3-1874
C.P.R.
plan.
a
were
in
supply at 9%%'.' The Gov¬
ernment
was
were
and
scant
Street, New York 5
WHitehall
inclined
in" Canada
with
active
rises
throughout
|
PROVINCIAL if
pects,
regard
future
to
the general
pros¬
incidence
the low interest rate trend
CANADIAN*
MUNICIPAL
of
can
lead to still higher prices in the
SECURITIES
CORPORATION
external section, and the belated
Government
Provincial
resurgence
Municipal
Corporate
■
of
the
Government
bond market in Canada is likely
to attract increased attention to
the
internal
high-grades.
CANADIAN STOCKS
is
that
"Unless there is some profit,
people will either live up all their
current incomes or put the money
;
Canada's International 1
A. E. AMES & CO.
ard
Samuel
TWO WALL STREET
new
eight-page brochure gives
a
50-year analysis
of Canada's international trade and shows the
RECTOR 2-7231
NY-1-1045
tance
of exports
It also contains
in the country's economy.
a
summary
financing since the
CANADIAN
i
STOCKS
Industrials
y.
•
••*
.
.
;
—
Banks
—
•,
at
...
of Dominion Government
including the amount and
December 31, 1945.
of this brochure will be furnished upon request.
Broadway, N. Y.
4-8980
Wood, Gundy & Company
Exchange
Royal
Bank Bldg.
Toronto, Canada
Teletype NY 1-142
Direct private wire to Toronto office
14 Wall
"Much
become
un¬
i-;;";{;A
of
this
discussion
has
If
unit,
or
as
an
average.
That is not,
however, what makes the eco¬
nomic mare go.
What counts is
individual profits, and therefore
it requires freedom of individual
profits to
there
is
still
ly
been
someone
of average
mere¬
its
fact,
so
bears
else
increas'e
will
cost
because we become careless about
belongs
failure
when
success
to
"These
are
the
reasons
such
the
is
That
reason
product of the statis¬
activities, not of the ac¬
profits
are a
tician's
countant's.
Business firms do not
go broke on average
profits—they prosper or go broke
on
their own.
This pins down
prosper
or
another
error
which the OPA has
built into its reconversion
pricing
of
A
plan—the 'industry average'
profits as a guide to controls.
market
free
does
•;
error.
"Profits
•
•
free
and
to
and
efficient
this
y,
be
must
make
not
free—free to
differ
between
inefficient.
the
to vary from
with ceilings high
enough for the good years so as
to make up for the losses in poor
years.
Freedom for competitive
enterprise will take care of greed
They must be free
to
year
year,
retaining
while
the
proper
re¬
initiative."
for the
profits, and the rea¬
why they are the lifeblood
free people operating in free
had
collective
a
and as such cannot be
with collectively^ Average
dealt
Importance of Price Freedom
existence of
sons
no
matter,
ward for efficiency and
else.
be
can
profits; profits are an
individual rather than
other
that all of us
it; its ex¬
and cost are not changed
istence
—in
has
and
moved
There
vary.
such thing as freedom and justice
the
impor¬
why this country has
phenomenal economic
growth, which resulted from the
productivity of free enterprise
operating under the incentive and
guidance of profits. Profits meas-
Prof. Harper
his
in
is firm and direct
of free prices,
"the heart of a
advocacy
calls
he
which
free economy."
free
"A
economy,"
Prof.
Har¬
"cannot exist without
free prices. Any statements or in¬
ferences to the contrary are de¬
lusive. Actions based on any other
says,
per
assumptions are either pitfalls or
baited traps. Free prices are so
Postwar
Developments
in US Will Have Strong
economic
Post-war
United
the
in
of
future
financial
before in the
ever
on
the
Canada than
history of the
associated ; countries, ac¬
cording to the Monthly Commer¬
cial Letter published by the Ca¬
nadian Bank of Commerce, To¬
.closely
ronto.
Citing
a ; trade
goal for
States^ of $10, billion
the
in
exports and $7 billion in imports,
United
said
bank
of
that
that accomplish¬
projected foreign
result in economic
benefits to the entire world. The
would
letter stated:
Canada
when
pre-war
surplus
is
market for much of her
production. If her hopes
realized Can¬
in this direction are
purchase more
products—cotton
and
oil, for example."
American
The
thingy Prices are the
expression of all eco¬
decisions, and free deci¬
same
of
forms
other means of ex¬
no
pression than through free prices."
this line, he
along
Continuing
comments:
"Prices in our economic affairs
of the de«*
A free (honest)
jury rests on the
freedom of the jurors to express
their honest opinions, and it is the
same within a price
system. De¬
counterparts
the
are
cisions of juries.
of
decision
a
prevent prices from be¬
and from being f freely
determined in the market, when
vices
to
free
ing
created
by law
and
enforced by
law, become the equivalent of
convicting a jury that persists in
objecting
to
having
its decision
altered. Such treatment of a jury
;
time
a
to be almost another name
omy as
for the
sions have
develop¬
States will
effect
stronger
a
much at the heart of a free econ¬
nomic
Effect in Canada
f bank
might be labeled as the ultimate
of the ridiculous, or at least as
destruction of the
jury system.
treatment of
the other hand, is often
glowing terms of pa¬
triotism, and in wartime many
people kindly offered their serv¬
ices to help administer 'convic¬
tion of the jury' of price.
corresponding
The
price,
on
labeled
in
"Prices are not completely free
.
and
seller
is
warned,
however,
that the volume of goods passing
unless
each
agreement as to price that is sat¬
isfactory to both of them.
This
does not mean that the buyer does
not wish to buy at a lower price,
nor
that he might not even pay
more
if necessary.
It does not
the border in
"will depend partly
upon Canadian productivity and
costs," in addition to the receptiveness of imports by the United
way
across
future years,
extent"
by
governed
American
conditions.
.^'Obviously,''
States
be
will
which
some
economic
the
business
means
a
in
bank
added,
the
United
market for all producers and
traders, American and non-Amer¬
ican, and less resistance to im¬
ports which compete with do¬
mestic
commodities."
each
allowed
buyer
freely
to
enter into
an
either, that the seller does
for more, nor that
mean,
not wish to sell
broader and more
open
Street, New York 5
would
been in terms of profits ag a
the
"active
Incorporated
efforts
productive.
exist
"to
Members Toronto Stock
some
gentleman
assumes
risk, the equivalent of profit
States
• ••
WHitehall
•
distribution of debt
A copy
CHARLES KING & CO.
61
war,
ventures.
or
ada will be able to
,
Mines
Bought—Sold—Quoted
v
impor¬
meas-
people would have no way to
appraise their own efforts, and
benevolent
"At
Our
business
in
it
Uncle
making strenuous efforts to ex-*
pand her foreign trade, both ex¬
port and import, she looks to the
United
States as a larger
than
Trade Position
%
haz¬
in their socks rather than to
ment
N. Y.
the risk or induce¬
is there.
why
ment charge
trade
NEW YORK 5,
hazard .involved;
the
for
reward
the
INCORPORATED
los¬
his investment in a business
ing
have
With
chance
anyone
venture unless there is some extra
ments
list.
the
else,
someone
112.
to
Internals
mand
CANADIAN BONDS
were
rise since the consummation of the
yy^'C-'"
(d) The appointment of
to
following their over-rapid
sag-
debt
smaller
the
moved strongly
managed either
by
or
will
Neither
tant
equitable "national minimum"
social
in
range
its equivalent, and
inducement charge.
put money into a
of an inter¬
est-equivalent return; that is why
the
interest
portion
is
there.
been
has
grades, and
particular, within the
tion, and Albertas
of
an
services
list
the
High
for cap¬
factors:
without the prospect
highs. Saskatchewan and of a
Montreals displayed little anima¬ enterprisf j.
to be created
the
or
or
will
business venture,
all-time
of
> Bell System Teletype NY 1-702-3
Nationals in
each Province.
towards
of
justified.
necessary
ital is determined by two
someone
National
A
previous anticipa¬
strength in the bank-elig¬
section
fully
Adjustment
by which the
wealthy Provinces would contrib¬
(c)
(&RPORATIO?!
ible
the basis of business
on
that
ever
The
labor.
level of this living wage
or
pared
be
other Provinces that Ontario and
\
the
land¬
with equal
failure
or
-•
('profits'). There is a
'living wage for capital' just as
it is paid
■
vincial "returns.
long-standing
•
important
Canada is reached with all
used for both Dominion and Pro¬
request.
this
mark
and
to
have
,
individual
fix
to
Island
Edward
formal submissions, but
no
willingness to ac¬
cept the Federal tax proposals
provided that the subsidies are
sufficiently high.
Dominion
Province
Each
Government.
the
on
have expressed
policies pat¬
the
of
Prince
and
Provinces adopt
the
That
(b)
uniform income-tax
itself
proposals but Premier
Duplessis has indicated that his
Government is
opposed to any
lessening of the Provincial auton¬
omy. Nova Scotia, New Brunswick
success
ure,
work unless
live and
not
will
it
one
succession duties and other taxes.
the
ance
personal
the
Dominion
the
with
share
the Provinces
That
(a)
tions
tax
fields in return for fixed
ies from the Federal
spect to year
income,
the
vacate
Provinces
"Capital is like a laborer in that
a
committed
131)
page
ure
those
v
(2)
not
|
stall.
(1) interest
Federal
in-
justice to all. Without that
No
has
the Dominion
proposals that the
tnese
centives, coming only from prof¬
its, a nation will stagnate and the
existing economic machine will
pal external debt.
So far the Quebec Government
opposes
Government's
(Continued from
Lacking
efficiently.
service of Provincial and Munici¬
Briefly stated, the Ontario Gov¬
BOND:
legislation
Federal Government.
the
of
proposed by Mani¬
Columbia and Al¬
berta, point towards an ultimate
agreement
more
closely ap¬
proaching unanimity.
ernment
f
(g) Provinces to be consulted in
j.
previously
CANADIAN
assumption of public works to re¬
•'
toba, British
1945 CLOSING
Economic Board the decision as to
main with the Provinces.
the reac¬
tion of the Dominion Govern¬
ment and the counter measures
breakdown
a
V uV'u'.y- yv' , >
possi- ®
forthcoming session,
of the
adjustment of inter¬
governmental difficulties, i r '
(e)
The
establishment of a
Dominion/Provincial Economic
Board of experts to examine the
economic problems of the entire
country. ■;yky ,y: (■ ■■ >>'
/-y;.y••
y;.,
(f) Subject to the advice of the
Coordinating Committee and the
might not sell for less if neces¬
sary. It means only that both buy¬
he
seller, taking into account
they wish as a basis for
their decision, are free to negoti¬
er
and
whatever
ate
a
price. In no other way can
of the
individual and
freedom
free
enterprise exist. To deny the
m':
p/olume 163;
Number 4454
THE COMMERCIAL & FINANCIAL CHRONICLE
justice of that process is to deny
his
individual
the
to
sovereignty,
to
and
Securities Salesman's Corner
in
involved
the
concepts' of religious freedom
and the secret ballot. All these, as
in a free market, respect the judg¬
decision of the individ¬
ment and
ual, however arrived at.
doctrine
right of an individual to kill or
rob his neighbor. But no such cor¬
respondence
and
When
exists.
buyer
seller
mutually agree to ex¬
product at a price—any
price—the nature of the deal is.
change
a
different from the buyer rob¬
very
bing the seller at the point of a
and paying him nothing.
In
usual course of events, mur¬
ders or robberies are not mutually
agreed to by both participants.
Laws like those against robbery
are
really laws to preserve the
right of the to-be-robbed person
gun,
the
to
have
the
not
or
in which
occur,
some
part in the decision of
a
whether
name
robbery shall
it by
we call
case
JOHN
other than robbery. It
DUTTON:
In
last
Saturday's New York
letter
a
gave
written
"Sun,"
the
us
what
clue
our
our
some
the Editor,
to
of the verities."
people believe to be true, whether it is true or not.
More
attention might well be given to breaking down lies and
establishing
,'. ;v
For
many years our American system of
under concentrated attack by politicians of the
capitalism has been
left-wing, New Deal
school, and their hordes of fellow-travelers. During the early years
Roosevelt's administrations, name calling, and the use of smear
against those who upheld these time-honored American capitalistic
principles, became the established method of propagandizing the
masses of the people into believing that the majority of those who
had wealth, or property, were inherently
evil; and that "profit" of
of
of a majority. This distinction is
important in appraising the recon¬
version policies now in force and
those
proposed.
Suppose
you
Unterberg Re-elected
By N.Y. Sec, Dealers
listed
Germany.
How
many of those features would be
Unterberg &
barriers in interstate trade, and to
laws protecting a person's right to
considered desirable
President
apply to
employer for
any
the employer's
him;
job
a
right to hire
all
these laws are in sup¬
free market. These mat¬
ters should be pondered until it is
seen clearly that a plea for a
truly
port of
free
a
market
is
not
doctrine
a
of
'predatory economics,'; as
some
charge. It is just the reverse.
"When
of
esses
condemns the proc¬
free market, as he is
one
a
seller. If the buyer and
agree to trade the bushel
or
seller
of
potatoes
sets
at
$2 and
dictator
a
price limit of $1.80, he is
economically
disfranchising the
a
seller in the market. He
exactly
the
who
robber
same
takes
is doing
thing
the
bushel
potatoes ami then hands the
victim
a
gratuity
wishes, in this
of
of
poor
what
he
$1.80. This is
disfranchisement of the seller
not
case
by
is complete disfran
chisement, and the seller is com¬
pletely at the mercy of the con¬
trol instead of
being able to pur¬
his rights in a free market.
sue
out
fea¬
undesirable
if you
by
dictator,
a
following
do
majority
a
out
short
of
no
an
logi¬
argu¬
jority in
sirable
trols
the
are
into
of
operation
within
economic
majority
rule
not
insured
earth might never have 'become'
round. The laws of economics pre¬
vail
in
spite of what majority
opinion happens to be. Neither the
laws
of
nature
public
they
laws
of
determined
by
the
nor
be
can
opinion
polls,
useful
as
for other purposes such
are
testing what people believe.
"In terms of the price problem
whether
or
decision
volved in
war
uses,
but
one
not
an
that; is comparable to the
problem confronting people in
price
a
potato crop is
short,
or some similar other event.
If there is any distinction at
all,
it is a matter of
degree and not
of kind.,
-
"It is
lief
really, founded, on the be¬
that a dictator, or a committee
to whom he chooses to
delegate
this power, has judgment
superior
that
of
the
individual, and
to
should
be
substituted
for
1
this
one
substitution
deal
one
justified
cally
;;
is
for
for
or.
it.1
justified
If
for
price, it is logi¬
all
deals,
all
prices, all economic affairs, all po¬
litical affairs, all religious affairs
"Surprisingly,
coined
a
name
no
such
has
one
as
a
yet
'demo¬
cratically free market' to refer to
a system of
price controls arrived
at by a majority rule in
contrast
to
voluntary market
a
But
economy.
that
even
concept has been born,
though no one name has yet
come into common
usage. Its nam¬
ing is probably only a question of
time, because the notion already
prevails
that
the
dangers and
penalties
of
price
control
are
escaped by the use of democratic
processes. What is wrong with this
idea?
that
of decision
oneness
shall
is
as
in-,
compels
for
be
any
to what the
as
product?
There is no automatic
compulsion forcing us—particu¬
larly in peacetime problems like
that, of
reconversion—to
adopt
some system that allows the ma¬
jority to impose its decision on the
a
Nothing!
minority, such as is involved in
having an office of President. Dif-^
ferences of opinion as to prices can
live in perfect harmony and func¬
tion
C. E. Unterberg
curity Dealers Association at the
annual
&
Co,,
therefore
follows
the important maxim of '.
.
.
gov¬
erning best
a
free
danger
society than giving full
central decisions through
sway to
majority rule, for it
can
eventually
destroy
ciety. The
democratic
that
and will
free
so¬
process
is
no
protection. In fact, dependence
on
the democratic process for pro¬
tection
can
lead
the depths of
us
innocently into
anarchy, and into
a
of widespread robbery of
process
Why is it not reasonable to
accept with confidence any con¬
trols arrived at by the
process of
of
newly added to the
were
of
essence
of
our
traditiona
of life in this country is not
the principle of majority rule but
is, instead, the protection of mi¬
rule
or
way
norities
against the
depredations
in
the
by arbitrary edict, results
elimination
freedom
and
lifeblood of
a
free
of
individual
enterprise, the
free society."
"
telephone the better part
day, answering telephone calls from startled clients of
over
nation-wide network,
a
was
due for
a
that
he
downward
they won't fall into the pitfalls of economic and financial illiteracy*
which surrounds us on all sides today. We can do our best to point
out to them that if they want to learn economic truths, and obtain
sound investment information, that there are lots better places to
obtain it, than listening to the radio commentator.
The need
in
of the New York Stock
that
announce
ington
firm
Fiske
as
a
Exchange,
Lieut.-Col.
Jr.
has
member
of
conglomeration of salary spongers, this moribund organization might;
do something constructive toward educating the investing public
along the road to sound economic thinking and better investment
procedure. But here again, what good could be expected from ari
organization, conceived in iniquity, under an unmoral, as well as art
unconstitutional act, by the same sort of New Deal, economic
fallacies
today continuing to undermine our system of
in other fields; of endeavor? Other nations of
greatness have gone dowa into the dust because of thq
who
are
enterprise
preached by half-educated opportunists.. The people whd
; • \
could have told the masses the truth were silent.
the
advisory staff. Prior to en¬
tering the Army he was a part¬
in Fiske &
Hytron Radio & Electronics Corp.
Scheyhing, invest¬
ment counsel.
Common Stock
During the
the
nationwide re-education of the America^
invest¬
ment
ner
a
principles
Red¬
joined
the
the
Bankers Association, the
historical
& Delafield, 14 Wall
Street, New York City, members
today is for
of American capitalism. The American
IBA, the National Association of Manufac-f
turers, the various chambers of commerce, and groups of American
business men, and all other public spirited educators and leaders of
public opinion, should get together and show up these purveyors of
half truths, and bare the quackery that lies behind their utterances.
If the officers of the NASD were anything more than a glorified
people
i Delafield
>
war Col. Fiske spent
than three years overseas on
staff of
Chief
Prospectus
Major-Gen. Frank S.
of
on
request
Transportation in
the European Theatre.
As Chief
Fiscal Officer of the
Transporta¬
tion
Corps in Europe, Col. Fiske
responsible for negotiating all
details relating to port
financial
and
rail
services
cal Aid.
under
Recipro¬
Herrick,Waddell & Co., Inc.
55 LIBERTY STREET, NEW
YORK 5, N
Y.
He also directed all
pro¬
curement of
transportation equip¬
ment and negotiated the financial
terms
for
Lend-Lease
transfer
(within
the
Theatre)
of, such
equipment to the British Govern¬
ment.
He was awarded the Bronze
Star Medal for
outstanding serv¬
ice in
of
all
controls, whether by majority
"The
entire
private
American
Fruit
Growers
Inc.,
Com,
Arden Farms Co., Pfd. 8C Com.
FuIIerton
Oil Co., Com.
initiating the reorganization
Transportation Corps sup¬
undesirable, law. The executing
majority rule?
another under the protection
one
an
thinkers,
was
graver
Especially, through the command of the radio, these left-wing
economic system which we have in
country today, can and ARE destroying the very foundations
of private enterprise.
Instead of preaching cooperation they instill
hatreds. Instead of trying to bring the viewpoints of the loyal and
honorable American employer before their vast listening audience
they smear all employers.
For years they have been condemning
Wall Street—or some mythical group of evil men connected with
the investment business better known to their followers as "insiders,"
but whom they have never (individually)
called by name.l-They
know nothing about the sound economic system which created our
American standard of living.
They don't even realize that private
property itself, is as inherent in our way of life, as any of the
other guarantees of personal liberty which are assured to our citizens!
through the Constitution. They don't recognize the simple economic
and political FACT, that the sort of American capitalism which we
have built in this country is a direct outgrowth of those personal and
guaranteed freedoms.
And that if you take away, and change this
system of private capitalism into something else; you can call it
Americanism from dawn till doomsday but you won't have those
civil and religious freedoms now guaranteed by that Constitution.
Personal freedom, Americanism- if you will, is insolubly bound up
with, and tied with American capitalism.
And that means private
property, the right to make as much profit as you can make, if an
honest profit—and to to keep what you've got after you've made it-or give it away if you want to!
believers in the sort of twisted
this
Delafield t Selafield
Ross,
to
officers
Redington Fiske With
ket allows this freedom and pro¬
tects the
minorities
against the
no
Other
■
Board of Governors.
more
"There "can be
were:
Philip L. Carret, Cgrret, Gam¬
mons & Co., First Vice-President;
Fred J. Robe, Second Vice-Presi¬
dent; Otto H.: Steindecker, New
York Hanseatic Corp., Treasurer,
and
John
J..
O'Kane, John J.
O'Kane,
Jr.
&
Co.,
Secretary.
George Geyer, Geyer & Co., and
Chester deWillers, C. E. deWillers
by side, similarly to
freedom of speech. The free mar¬
and
meeting.
elected
side
majority,
are
had "inside
plunge. It is
important that the market did sell off for a day or two. Those of
us
who are trying our level best to serve the public with sound
investment advice and assistance, know only too well that nothing
any one radio speiler can say will change the long term trend of
market prices.
We can tell our clients about the powerful economic^
forces which in the long run will be the arbiter of pricesrwo" can
do our best to guide those with whom we come into contact, so that
necessitate
such
election. What, is it,
fori, instance,
peacetime when
they
majority of people
bent into any form desired, by clever and evil men.
not
by
If
majority
determined truth
the
economics
like sheep. The will of the people:
It hasr
time and again, throughout history—and it is being done
today right under our very noses here in America.
! v"
be
been done,
night broadcast
con¬
approval.
had
The
information" that the market
v
is
-
can
his firm, because a certain radio commentator inferred in his Sunday
democratic environment.
a
"Soundness
this American system, by their constant
Several weeks ago this writer sat at a
,
by
Scores of radio
exposition of halffallacies, no doubt they would be sincerely out¬
raged over such an idea. Many of these people are well meaning.
But the dangerous thing about radio is that almost anyone with a
clever style of delivery, a convincing tone of voice, or a hypnotic
method of putting across a story, can command a large following.
of
whether put
a
dictator ' or
same,
any
to
Se-
democracy. The unde¬
a
effects
terials
diverted
York
tive ruling by an official who has
been properly elected by a ma¬
ment for complete
dictatorship. It
is true that in wartime
many maare
re-elected
was
New
governmental em¬
ployees who follow an administra¬
and other economic problems of a
free
society,
the
question
is
justified has
the
by
as
terminus
of
decision to
also, if car¬
controls
cal
Unterberg of C. E.
Co.
dying and decadent age of American
Ever since 1932 that attack has been intensified.
com¬
a
"The line of reasoning which
leads to the conclusion that
price
are
Clarence E.
democracy
a
It is the same,
so.
ried
by
or
mittee of citizens in
the
as
the
Hitler's
could
know that they were endorsed by
a
majority of the people in Ger¬
many
(as they : very well .. may
have been)? The elimination of a
minority, by means of a blood
purge, whether because of 'race,'
political beliefs, or economic be¬
liefs, is the same whether carried
,
doing when he endorses any form
or
degree of price control, he is
invalidating the rights of either
buyer
all
tures of
a
"
commentators have climbed upon the bandwagon. All of them profess,
to their great patriotism and their belief in the American,
way of life.;
If you were to tell them that they were undermining the very founda¬
tions of
following paragraph
by a certain J. Harvie
for this week's column... Said Mr.
Williams, "When error and untruth are believed to be true, every
circumstance is fraught with danger; for our future will hinge on
appeared in
Williams. It
corresponds to the anti-trust laws,
to
anti-monopoly laws, to free
trade, to laws against artificial
and
immoral relic of
an
truths and economic
And Economics
:•."fv
the counterpart of the
as
•By
Concerning Public Misconceptions Regarding Sound Investment
,
:
; "Opponents
of a free-market
price may point to this economic
was
imperialism.
the
refute
fairness
of
doctrine
itself
economic
155
Wdgenseller £ Durst, Inc.
ply activities in Europe.
Members Los Angeles Stoclc Exchange
Holsapple
to Admit
626
Holsapple & Co., 30 Pine Street,
York City, members of the
New
New
admit
York
J.
nership
Stock
Lloyd
on
Exchange, will
Bailey
January 17th.
to
part¬
SO. SPRING ST.
TRINITY 5761
LOS ANGELES 14
Teletype: LA 68
Market Quotations and Information on aii
California Securities
r
THE COMMERCIAL &
It 56
Thursday, January 10," 1946
FINANCIAL CHRONICLE
(Continued from first
experienced another
just
We've
page)
high in Christmas business,
I'm sure that many of us
know that we've hit a new low
new
but
that
merchandise values
the
in
able to furnish our
particularly : those of
moderate means.
As one of the
magazines so aptly puts it, con¬
been
we've
customers,
ity.
result has been a forced cheapen¬
thousands
ing of quality and disappearance
of goods,
thus compelling con¬
sumers to purchase in price ranges
much higher than those in which
they would normally buy.
The
series
of
regulations to
which I refer may be briefly de¬
scribed as first, the "Rigid Freeze"
technique, which plainly discrimi¬
nated against the low margin pro¬
this
lingerie and hosiery were pitiful,
apd our toy departments bordered
on
a
national scandal. ; Threequarters of our
riorated in
extremely
lost
goods were dete¬
quality and prices were
high. But the business
staple lines was more than
by heavy sales of high-
on
offset
and gifts,
sales and
viewpoint, retailing had a
priced jewelry, novelties
and from a short-range
profit
successful holiday season.
<
Y
under
which
producers
Limitation,"
Line
thousands of low-priced
possibly operate; the
"Maximum Average Price Plan,"
could
not
which fails to make adequate pro¬
vision for mounting labor and ma¬
terial
notwithstanding the
it has been amended
costs,
that
fact
countless
dition
times;
these
to
"Cost
and
three,
Absorption"
in ad¬
now
have
we
levels,
all
at
simply a new name for the same
type of unrealistic and inequitable
consumers? We
approach as has obtained through¬
agents. They out the
past three years.
are our bosses.
.They spent their
Keep in mind that price indices
money rather freely during their
do not reflect quality deteriora¬
first
peacetime, holiday season.
tion, nor do they reflect produc¬
But just how long will this last?
tion.
What about the
are.
their purchasing
long before we
How
can
expect
cool, calcu¬
shelves and
the consumer to cast a
lating
on
eye
our
tell us in no uncer¬
counters and
not doing
perfectly clear
tain terms that we are
a
I think it is
job.
appraisal
Any
of
current
living costs, based on such indices,
is therefore highly erroneous.
OPA, whenever they desire to
additional squeeze, sud¬
denly conclude that they must act
strictly in accordance with the
apply
an
will not con¬
Stabilization Act and the Presi¬
inferior, over¬ dent's Executive Order
9599, and
priced substitutes for any ex¬ that the Administrator has little
tended period. They know quality
if any discretion except to adhere
and they will demand it. And we
rigidly to Sept. 15, 1942 price
will give them what they want at
levels. But he finds it equally easy
a price they are willing to pay, or
to
the
that
consumer
tolerate
to
tinue
that
know
We
severely
we
have been
time he chooses.
handicapped, throughout
currently, by a series
of OPA actions that have caused
line after line of low-priced goods
to disappear
forced
quality in those lines that have
of
;
from the market/and
drastic deterioration
remained.
.
too, that OPA's cur¬
unrealistic,, theoretical and
approaches to pricing prob¬
impeding production and
literally throttling industrial ac¬
tivity throughout the nation.
unfair
lems
•;
Although the war has been over
five months, the shortage of
consumer
essentials is now more
acute than at any
time during the
war.
:
in
housewife
country knows, it is ridic¬
course,
the
ulous
to
as
every
But OPA
"line"
that', the
assume
has been held.
.
stubbornly adheres to
the position that anyone who does
100% with their arbi¬
trary narrow viewpoint is against
agree
price
control
runaway
and
is
advocating
inflation.
Certainly
retailing has never
position.
We have
attempted to obtain1 realistic end
taken
such
a
honest regulations. We have coun¬
seled
against
discriminating
We have urged that
attention
be
paid to the
some
suits,
while
And
wash
dresses,
consultations
Optimism
shirts, shorts,
and
goods
piece
Mr.
practically non-existent,
"the unexpected
speedy reconversion," of our "ex¬
cellent outlook" and the period of
"unprecedented prosperity" that is
around the-corner.
And he de¬
scribes in glittering terms how
"extraordinarily
successful"
his
Bowles speaks of
deaf
on
ears.
Everyone knows that labor costs
and
consequently
material
didn't
apply
their
they
sure
unreasonable
tactics in pricing bombers.
Or by quoting overall sales
profit figures of a
stores,
and
limited group of
he attempts
that
to show
OPA activities have not interfered
with civilian production.
But it's
been clear to me that high
never
high profits on costume
jewelry are a valid excuse for not
having broadcloth shirts.
We haven't charged that OPA
sales
or
has handicapped sales or profits—
We know that they have seriously
restricted
sumer
the
production of con¬
essentials.
••
..
'
OPA Policies Operate iii Reverse
OPA
is
interests
presumed to act in the
of
consumers
and
per¬
costs
have increased sharply since 1942,
that operating costs for every type
of business are far above 1942, and
that
industry
with
further
costs.
is
faced
in
generally
increases
labor
Under the circumstances, it
but this does not
I'm
his
new
retailers and
tions,
wake
consumers
demand
and
up
when he
all
be I can get into my
may
them. He assumed that
file
could
he
Mexicans over
the ceiling price for piece goods
Or why we buy
they meant
in
scfu.nds
mind,
not dealt previ¬
ously with OPA.
-
1
•
exactly what we would
He did
He recon¬
turned all
producing the
like all industry to do.
verted immediately and
machines
his
to
that he
number
identical
manu¬
240 needle, mer¬
factured prewar:
lent
excel¬
quality utility hose that had
been
cerized, split-foot hose, an
production during the past
twelve
naive, but keep
he had
he
know
Argentine socks,
gloves and bags—
Or why the low priced electric
iron
.
months has
zero—
Y■ Yy Y
Or why
exactly
been
\Y>:Yy:Y..'Y.
olds have to
1 to 6 year
.
play with dominoes and checkers
trols
We
meant to include all the bases and
the catcher's mask
assure
Or why
babies have to wear ex¬
cessively heavy weight diapers. '
Instances of this kind could be
quoted by the hour. I think that
the presentation of only part of
our
exhibit to the Senate Com¬
mittee took about four hours. Y
the answer to each is the
that
you
I
can
wait
for
well.
as
if
we
OPA to act, we'll have long gray
beards before we decontrol any¬
thing of any consequence.
No
Disposition to Remove
/•
v
Controls
No, there is
desire
but rather
no
take
to
a
'
'
indication of
controls
a
off,
self-perpetuating ancl
dangerous program that is bound
to
the
/
handicap industry throughout
transition period.
'""
;
Just a word on Retail Cost Ab¬
sorption.
Mr.
Bowles
believes
that r.etail margins are excessive.
In a letter to Judge Vinson over
a
instead of blocks—;
took the controls off of
bats,
shoes.
real
for outsized dresses—
an
Y;
in this
and heard
seen
equipment except
mitts, apparel and
thought he took con¬
off home plate, but no—he
balls,
Or why we pay
application
and receive permission to charge
a
fair price for his products. ' I
that
action.
baseball
manufacturer—
OPA
no
price controls can be lifted item
by item.
And you should have
heard him explain what he meant
regula¬
reasonable
a
estate attorney who
job of determining when
has the
"When
statement,
the
with
up
ex-real
an
yielded prewar.
dozens
free
could have
room
to get a price for
nine months and has finally given
throughout the wartime period,
the various pricing regula¬
tions and believed every word of
he announced his de¬
plan to substantially re¬
year ago,
liberate
duce existing
started with
a
He
retail margins.
limited list of low-
priced essentials, which retailers
generally were quite willing to
sell at reduced margins, or no
margins if necessary, and at that
mer¬
time it was carefully explained
In the
that this was a restricted program;
same::VOPA's adamant refusal to
course of 60 days, he had produced j
be fairY I YYY •v-\ Y Y^Y y^Y'vY ; Y;Y Y; only to be applied to the barest of
approximately 20.000 dozens, and
necessities.
Since, we have seen
Of course there are honest dif¬
having heard nothing from OPA,
ferences on pricing technique, but that program expand, line by line,
decided to visit their regional of¬
and price range by price range.;
reasonable "person agrees
fice.
There he found, much to his every
that
competent,
equitable Y and At present, it encompasses a very
surprise, that there was no pos¬
large proportion of our volume,
clean-cut decisions are needed to
sible way of obtaining price relief,
and the end is not in sight. *
that he \yould have to sell his hose encourage industry, to put men
tc work, and to
produce goods Y OPA attempts to justify such
at the March, 1942, price of $2.27 M>
actions by preparing charts and
quickly and thus counteract the
per dozen.
The fact that his cur¬
booklets showing national aver¬
inflationary trends that are now
rent
production cost him $2.52
ages in total industry sales and
made no difference. OPA was not being stimulated by forced acute
Ordinarily, for the retail
shortages induced by Governmen¬ profits.
even mildly interested in his cur¬
business, they use the figures, of
tal restriction.
.* :
rent costs, or in his problem.
Was
the Controllers' Congress.
These
YIt is difficult nowadays to pick
available
three
for
increases
runaway
the
in prices to
prices
press
mean
or
advocating
inflation.
to
any
years.
that present
The
,
No. If not he de¬
consideration.
Because
at a profit, he
could well afford to sacrifice
now
operated
of it by producing at a loss.
some
He solicited
aid and
our
pricing
pricing
formulas
York, offering
the higher costs and sell
prewar
prices to bail-out a
to
pay
that had served
manufacturer
us
faithfully and satisfactorily for 20
but that couldn't pos¬
sibly be permitted. It would be a
treble-damage violation. His only
odd
produce
a
new
OPA—was
to
number and ap¬
ply for a higher price.
has been and is
currently a major
impediment to production. Manu¬
facturers
are compelled to discon¬
production of prewar com¬
they
were
skilled
in
making in great volumes, and to
to lines in which they are
not experienced.
They have been
forced to develop wholly unneces¬
sary "new" products as a subter¬
fuge to obtain price relief, where¬
shift
Is This Intent of Congress?,
Then
we
f
called Washington and
the
from the
section on
little used nylon
same answer,
of OPA's pricing
head
hosiery.
"Mix a
in the heels and
number."
new
toes.
it
Call
a
And the best sug¬
gestion we could get from the Of¬
fice of the Deputy Administrator
for Price was to file an affidavit
to the effect that the character of
this man's business had changed.
give him
consideration. Is this the
Perhaps then they could
the
new
not
and
fair
equitable
that
pricing
ity for a price ticket, or a
price
index?
Or I
wash
might cite the Mississippi
suit manufacturer with
ca¬
pacity for 4,300,000 garments per
year, now operating at 17% capa¬
city although he has been trying
for over five months to get a $0.93
They tell him
the limit is a loss price of $0.71.
Let me quote just one sentence of
price out of OPA.
the
as-
All
-
—and
from
as
Y
letter to OPA.
"We
have
the
plant' facilities,
labor, the demand,
-
Lumber
-
Products,
primary
and
of
the
course
ences
of
sands
of
the
Can you heln
pose the question, "Are we all
of step but Bowles?"
but
out
would
person
the
accept
premise that no one will produce
goods except with an opportunity
for profit—but not OPA—at least
n6t the head of their Consumer
Advisory Council who insists
that
is on strike, that they
need
no
price concessions,, and
that they will produce when they
get "hungry enough."
industry
If OPA would only
activities
their
on
concentrate
encouraging
production, they would get the
unqualified and solid support of
industry generally. A tremendous
amount of good could be accom¬
plished this Spring toward satis¬
fying the pent up demand for
"hard to get" goods.
If such ac¬
tion were taken now, there would
be much less likelihood of any
widespread
upward
price
when controls are lifted next
But
not
we
production,
they have not shown the
slightest
to
produc¬
inclination
encourage
stores
of
thou¬
throughout
Fictitious
;;y,Y ;yY
association
has consistently objected to OPA's
using national average figures,
but they insist on doing so, and
they fail to give any considera¬
Every
tion
retail
trade
whatsoever to the wide
dif¬
ferences in margins and
operating
expense rates of the various types
of distributors.
For example, the
gross margins of the 250 stores in
the
Controllers'
Congress
vary
from
a
45.7%;
low of 32.8%
Variety
to
stores'
a
high of
margins
from 27% to 42%; furniture
stores from 21%
to 43%; hard¬
vary
stores from
ware
11%
to 41%.
y
All of these stores have similar
differences
in operating expense
Department stores vary
from 18% to 30%.
Variety stores
from
21%
to
35%.
Hardware
rates.
stores from 7% to 39%.
It is perfectly, clear, consider¬
ing these wide dispersions of mar¬
gins and expense rates, that it is
July.
that
away
National Average Figures
trend
all know that OPA has
encouraged
miles
the country.
producers as well
end-products.
are
operating experi¬
hundreds
small
manufacturers and distributors
of
They are com¬
stores.
pletely meaningless when applied
to the operation of any one store,
complaints have come
the
of about 250 large
the figures
successful
from the actual
complained—
has
industry
Rayon - Cotton
Steel-Coal-Meat-Dairy
Wool
able
Congress intended? Is this holding
the line? Or is it sacrificing qual¬
administrative expenses. The
application of this policy
Throttled
It would seem that any reason¬
.
and
modities
All Industry
years,
out—straight from
are
and
special
strict
magazine,
or
newspaper
day, anywhere, without find¬
ing a story or two on how OPA
restrictions are retarding progress.
we con¬
make only partial allowances for
current labor and material costs
tinue
any
up
any
tacted OPA in New
got
policies permit manufacturers a
price sufficient to defray current
case,
no
had
he
consumers,
costs and yield prewar
profits, but
all industry knows that this is not
the
the; red?
served
some
Certainly there, is nothing in¬
flationary about a FAIR price.
OPA implies in their letters to
Congress and in their statesments
to
he in
cases
of
who
one
i wish that every person
with 1,000,000
number than
He's been trying
read
products in either quality or util¬
regulations,
now
money
in
in
except
no
economy wants
day longer than
necessary/ but as per usual,
is
be regular business." ' Yyyy- ■ yyy '
cited.
I will mention only a few. f We might discuss why there is
no broadcloth, or 80 square print,
The case of a Georgia hosiery mill
or
why all of our sateen is ex¬
clearly indicates the problem.
,*
This manufacturer, a large one, ported—
Or why we have to import a
was engaged entirely in war pro¬
new
number in clothespins from
duction, from early 1942 to Aug¬
Denmark and sell it at twice the
ust, 1945, when Army contracts
price we used to charge for the
were cut back..
old reliable product of our Maine
The manufacturer, who had had
olv their
important
OPA has taken
spread and inexcusable.
Countless
examples could
but the fact remains that the bulk
to do so,
who can make
and
capacity,
5,000,000
pletely ridiculous, but the exhibit,
your Association prepared
for the Congress, clearly demon¬
strated that the condition is wide¬
dealings whatever with
and that
them continued
more
which
no
unthinkable
are
emergency
believes
of
•'
-<
■
Conditions Inexcusable
products are in most
equal to the prewar
are
''
■
This situation is of course com¬
his
haps their intentions
•'
■
for discon¬
prepare
pacity of 5,000,000 dozens per year,
who has cut production to 20%
dozens
at
pered production, he explains that
in World War I, production in¬
is - not at all clear.
Most
meaningless
Most industry ad¬
idle gestures.
vice fell
equitable."
[s hardly possible to prevent
II, under OPA, it increased 116%,
Just what connection there is be¬
tween OPA and War Production
■
to
largest in his industry, with a ca¬
were
program has been, and to prove
that Price Control has not ham¬
creased 25%, while in World War
un¬
fair tactics.
words "fair and
Scores Bowles'
businesses.
intent
trols
manufacturer,
Chicago
the
Or
the manufacturing
chant
are
for
are
Y
Manufacturers' Plight
of newcomers to enter
not
any
.,
.
,,
with their "in line"
has permitted countless
agency,
theory,
,
est
tinuance of price control—ever.
Chester Bowles says that con¬
without running
•
Of
not
We know,
rent
,-t
Ridiculous Contention
Y the war and
have
these mandates
disregard
we'll be out.
signal
field and pro¬
duce similar commodities at prices
considerably higher "than would
be necessary
to enable old-line
manufacturers to remain in their
ing
assuranceYpf getting a go
to
produce merchandise
into losses."
' ; ■
some
At the same time, the pric¬
particularly insofar as low-priced
essentials
are
concerned,; have
worked in reverse, and the end
dollars
did in
1939, but obtained 50% less satis¬
faction
with
their
purchases.
Stocks of shirts, pajamas, shorts, ducer; second, tne "Highest Price
spent 50% more
Christmas than they
sumers
production swing, if we can have
Control?
hat Price—Unrealistic Price
regulation with impossible cut-off
points—a complete farce.
•
Nor has OPA shown the slight ¬
back into a full
know-how to get
•
quite impossible for any pricing
regulations
based
on
national
averages to be fair and equitable.
Of course, if we experience vol¬
ume
increases, expense ratios will
drop, and margins and prices can
be reduced, and retailers would
like nothing better.
But the sales
potential of a dry goods store can¬
centive pricing for years. OP A has not be projected on the basis of a
finally adopted it. They issue a national average figure that intion.
Industry
has
advocated in¬
THE COMMERCIAL & FINANCIAL CHRONICLE
"Number 4454
jVblume 163
eludes automobile
andH
appliance
RESTRICTEDS IN DEMAND
..
Nor
gales.
used
as a
can
such
a
figure be
measurement of that re¬
"Our
tailer's ability to lower margins or
The ability to absorb
Reporter
absorb costs.
...varies
The
sales.
use
of
national
a
New
there has been
figure is impossible.
.
is well to point out, in this
connection,
that
during1936
through 1939," with margins sub¬
stantially ■ the same as they are
today, over half of all retail es¬
point
put that the department store cost
per
transaction
has
increased
.
.
sharply, from 71 cents in 1939 to
SUBSTANTIAL, DEMAND
1944; and-that with the
Some selling of the bank eligible 2s and 2%s resulted in a
restoration of wartime suspended
service, they will quite likely ap¬ minor- decline in these obligations, the middle of last week,- but the
proximate $1.10 per transaction demand was so substantial that what looked like an attempt to push
next year,
There is a real need and talk the market down for ''trading purposes'' was short-lived.
There has been and still is some switching out of the bank 2s
to keep the average: sales check at
and 2V2S by institutions which can buy the restricted 234s and2%s
its .present high level.
'
;
and this is certainly a natural procedure, since income, can bq
-But regardless of retail margins,
•
V :
pUr grejatestneed today is produc¬ increased considerably by such- an operation.. . .
tion;- and ^tihless goods: are pro¬
'•: Ktoweybr,. the amount, of bonds involved in these exchanges.'v
duced rapidly, (we will really ex¬
has not been " very large because the selling institutions do not
i
perience
an
inflationary .tidal
want to move out of too many of their eligible issues because of
wave,;
•'
..v:'r: ''J
:i their.greater^marketability....•
:"* ;I don't know how many of you
i ; Rather than iell their bank, eligible securities now,, it is reported
are
familiar .with ithe / impartial
that non-banking institutions have been making use of hank credit,
survey made • by a management
with these funds being used to buy .the restricted; 2% s and 2^s.
engineering company, ;of the; city
While it is generally agreed that more selling of the bank .eligof Bridgeport,.; but; the ~ facts dis¬
ibles by insurance[ companies, savings banks and other investors
closed are astounding;
Listen to
would be a good thing, for the market, not much hope is heid out that
some of these figures:
this will take- place at this time.
,
.
It is indicated that the institu¬
OPA Program Fosters *
tions will continue to hold the bulk of their eligible issues until there
Unemployment
is more definiteness to the Government's postwar financing pro¬
87 cents in
...
:
,
*
■
.
ment of the
gram.
'
..
M,
.
,
•• - tn.-
v--
m
•
..
weekly firm changes:
op^j4.8% of the work¬
low
Transfer of the Exchange mem¬
bership of Albert J. Hettinger, Jr.
to Edwin H. Herzog! will be con¬
-
situation
Bpwles
-
ff.Jan,
industrial
The
answer
Bulkley, general part¬
Trask & Co., be¬
to all of this is very
limited
a
partner effective
Jan. 1.
'
Privilege of^Villiam A. Klubnik to act as alternate on the floor
But we must keep
the Exchange^ for Henry M.
firmly in mind that OPA is a1 Watts, Jr. of Mitchel, Whitmer,
wartime emergency agency, that Watts & Coy was withdrawn Bee.
it has no place in a peacetime ci- l ^l, as of which date Mr< Klubmk
viliah economy.
Plans must be withdrew from partnership in trie
made for
progressive decontrol firm.
William Howard Schubart re¬
now and for complete discontin¬
tired from partnership in Lazard
uance by June 30th.
necessary.
Freres & Co.
"
Retailers Must Act
-
! All retailers must immediately
insist:
ceased
(1) That any and all controls
stand in the way of legiti¬
mate
production
be
promptly
eliminated, and this includes the
M. A. P. program. '
,
Dec. 31.
J.
H.
of
Brooks
late
&
Davis
Scully
goods - at current costs
opportunity for reasonfable profit.
■
.(3) That OPA bend over back¬
ward to encourage production, by
adopting realistic incentive pric¬
ing
programs
with
liberalized
cut-off points,
Benjamin Feinberg,
and
under
Interest
of
the
late Walter R.
Herrick in Hornblower & Weeks
Dec.
31.:
ceased
Ralph
be
on
Hornblower
Paul
B.
Skinner
*a71> ^r* of Detroit,
principles
aggressive pro-
We- must incorporate
will be .unduly delayed -and
industry
years
may
be
hamstrung
to come.
for
ners,
I
On
Jan.
1,
Boston,
of Chicago, Al-
^S
gram and fight ior it vigorously.,
Unless we-do, our, return to nor-
indenture
trust
18, 1944, were admitted
as
limited partners in Eisele &
King, Libaire, Stout &: Co., effec¬
tive Jan. 1,1946.
.(4) That the false theory that
increases needed to produce
mal
Bailie, general
limited partner
on
Rejoins
CLEVELAND, txOHIO
,
—
interest
loan drives.
i
.
.
marketable
on
recent drive
the
com-
/
„
was
.
.
i
.
;
issues sold to non-bank Investors in the
2.09%, the most expensive ef
.;r
of the eight
any
■
This compares with, a 1.965% average interest rate for the entire
debt outstanding at the end of December.. ... The average interest
rate on the marketable issues sold in the previous drives were:
Seventh,
1.92%; Sixth, 1.70%; Fifth, 1.60%; Fourth, 1,62%; Third,
1.76%; Second, 1.81%; and the First, 1.84%.
? V
The expensiveness of the Victory Loan, according to the New
York Federal Reserve Bank
publication, wa^ jbecause non-bank inr
...
vestors
were; apprehensive that long-term interest rates might de¬
cline Ond, apparently convinced that long-term securities could be
bought even for short-term holdings with equal safety arid greater
profitability than the shorter-term obligations, subscribed heavily
.' "
;':
to the lopg^term bonds offered in the;drive. ;
.
CAUSEI^'ANDvEFFECT'V^-• ■■■0'•
i'. The fact that
comment
the New;York Federal
-; v.
Reserve
Bank"
saw
fit to
the
high cost of obtaining funds from non-bank 'In¬
vestors during :the Victory Loan, along with the feeling; in some
quarters that the Treasury will eventually reduce the cost of financ?
ing the debt, at the expense of this class of investors, has created a
on
substantia! derhand; for the
outstanding restricted obligations. ;'
.
;
Until something tangible has been done by the Government
;
; to clarify its future financing program, it is
indicated that, higher,
[ prices are to be expected for the ineligible bonds..;
One of the largest gainers has been the
.
2}4% due 1956/59, and
of
f Phr
general part-
also became, limited partners,
Interest of the late Morton D.
Hutzler, limited partner, in Salo„
_
.
••yx„+„w-
mon Bros. & Hutzler, ceased on
Dec. .31, and the Estate. of Mr.
possibilities of further appreciation.
of the shrewd traders believe that this bond will be
...
Some
selling close to
1.40% yield basis when it becomes bank eligible next September
15.... This would indicate that the 2^4s due 1956/59 could still move
about a point from these levels.
up
,
.
*
.
INVENTORIES DEPLETED
Despite the belief that the dealers were well supplied with the
restricted bonds, it is reported that the recent large buying orders
for these obligations have depleted the inventories of some of them.
This may account for reports that spreads between bid and asked
prices in some issues have been as much as Vs of a point for quan¬
tity amounts.
J
1
Mr. McCann,
a
Lieut. Col., was
officer, for
carrier and combat cargo
groups in India and China.
He
was
operations officer for; the
North
Burma1 Air Task Force,
with headquarters at Bhamo, and
later
with
the
69th' Composite
Wing of the U. S. and Chinese Air
Forces, stationed at, Kunming.
McCann
Mr.
is a gradua te of
High School and Miami
University, with an M. A. degree
•
SHORT-TERMS STRONG
Firmness and demand for certificates and notes
After
serving three years with the Army
Air Forces, John A. McCann has
rejoined Merrill, Turben & Co.,
Union
Commerce ' Building,
as
Lakewood
in econcmics. He originally joined
Merrill, Turben & Co. in 1940.
money
reflecting easier
conditions have again revived the opinion in certain circles
point where there
that the money market will be built up to the
will be a reduction in the rate of certificates.
.
0
i
;
.
.
.
It was pointed out that the rise in prices of both the hank
eligible and the restricted obligations, forecasts a change in the
v;
method of financing.
...
...
^ERE;;EL$E?:0;0:;:^ p;'0
Although profits in their Government bonds are r very sub¬
stantial, the commercial banks cannot afford to take them because
there is no place they can reinvest these funds. ..
These institutions
have a problem in getting new funds to work and in order to do this
have made sizeable purchases" of the better grade corporates, many
of which have advanced more than a point in the past week. . . .
Investments in corporate obligations, because of the high prices and
scarcity of bank eligible Governments, could have an unhealthy
effect on the banking system if carried tod far.
,
.
.
New Partners
:We
CALIF.—
FRANCISCO,
.
.
are
pleased to
announce
that
Kaiser & Co., Russ Building, mem¬
HUGH H. CARLSON
bers of the New York Stock Ex¬
change, the New York Curb Ex¬
change
the
San
the
and
Exchange,
admission
are
of
*
First Ueutenant A.U.S;
W. D.
Quine, Leslie E.. Rowell, Charles
P. Burgess and Charles C.
as
JOHN W. O'BRIEN
Francisco
announcing
Charles
who have been released
.
from active duty
Horton
general partners, and the ad¬
':y"-
0
.
and
''
.•; ■
'ivr
mission of Edward L. Turkington
as
a
1946.
Mr. Quine, Mr. Rowell and Mr,
Burgess
are,
associated
Horton
is
in
charge
of the
are
Leland
Kaiser & Co.
M. Kaiser and
associated with this firm.
~
BARRINGTON & GO.
ter D. Heller and Allen E.
STATE AND MUNICIPAL BONDS
E. R.
Foley, general partners, and Wal¬
limited partners.
are now
UNITED STATES GOVERNMENT SECURITIES
New York office.
Other partners of
;•
with the
San Francisco office of the firm.
Mr.
JOSEPH A. HAIGNEY
limted partner, all effective
Jan. 2,
Meier,
,
Although it is believed that interest rates should be stabilized
at present to slightly lower levels, it is indicated that the Treasury
still holds to the policy of lowering the cost of .the debt burden
regardless of future consequences.
Kaiser & Go. to Add
Stock
dated Dec.
all
of this kind in an
Dominick
George J,
Sprayregen,
trustees
,
can
Davis
Dec. 31.
on
Morris
an
costs:
Co.,
Ernest B.
Prentice in Dominick &
ceased on Dec. 31,
.quality
current
&
Interest of the late Sheldon yE.
able- him to manufacture -prewar
at
Dec. 16.
Earle
Merrill, Turbin & Co.
SAN
the
in
Armstrong
(2) That every producer be
granted a price sufficient to en¬
goods
was
,.,
Dec. 31.
,
-
H.
John
late
the
in
on
Interest
ceased
on
of
Interest
Brooks
yyY
that
with
&
troop
in Spencer
came
We should not immediately re¬
move all controls. Certain of them
'
E.
J. A. McGann
.'
ner
clear.
'
John
ritory s the company announced^
,
:
are
holders
It was pointed out in this review that
preliminary figures indicate that the average computed rate of
a
late
Scheffrneyer
representative in the Dayton ter¬
2, 1946.
limited partner effective Jan. 1.
Edwin M.
a
equally astounding.
on
-
centerin Draper, Sears&Co., became# combat; intelligence
similar survey made,
the results would be
sure
of
as
pro-'.|
on
would have
I'm
active member firm
an
of Mr
thereconversion
evef^mkior
If
of
doesn't
Co. ceased
in
Transfer of the Exchange mem¬ partner, became a
bership of Webster Tiltoir to John in J. &: W. Seligman & Co.
H. Heminway will be considered
by the Exchange on Jan. 1T^
What's the Use" attitude.
with the optimism
of " the
Scheffmeyer
Estate of
,
This
partner on Jan. 1.;-
*
19.1% ranging from 0 to 75%, sidered on Jan. 17.
Sixty-four percent of all Bridge¬ ;
Hackney, Hopkinson & Sutphen
port industry is affected by OPA which became
^inactive on Aug. 30,
inequities and inconsistencies.
1942 during the period that; all
Industry is uncertain, confused,
active partners, were engaged in
and
has
generally adopted a War
Service/ resumed the status
check
concerned has been reduced,
outstanding ineligible obligations
Victory Loan funds.
"
Hu^ler was admitted as a limited
Interest
The New York Stock Exchange
has
announced
the
following
Price increases necessary aver¬
v
.
-
"
:
,
Weekly Firm Changes
.
age
While the cost of carrying
.
.
Federal Reserve Bank of New York In its January
still considered to have
New York Stock Exchange
ing population jobless.
.
'
Manufacturing costs have in¬
creased
29.4 %
since
1942, and
these increases range from a
of 10% to a high of 100% ;' .,
.
are
decrease yet with reference to institutional
despite the sharp advance that has taken place in this issue, it is
,
make 8,700
.
.;-'
Bulletin about the high cost to the United States Treasury »of the
.
.
CPA policies have caused Un¬
employment in 34% of all plants
in the Bridgeport area. Had it not
been for OPA; present i employ¬
ment would
be 3,400 or 5.7%
higher.
Unless relief is forthcoming by
Feb. 15th, OPA^tegulations will
"0
What has probably been responsible for some of the recent
.
.
;
•
..
.
buying of«the
.
>
,'
many
..
-
no
and individuals.
highs and advances in
instances, up to the limit of
8/32nds havd been the order of the day in the Government bond
market.... The usual January investment demand,- scarcity of offer¬
ings and the - fear that present high prices would still go higher
pushed the market to new alltime tops.
Another factor came into
prominence last week, with the report that the return flow of cur¬
rency from circulation amounted to $158 millions, the largest weekly
The realization that the return
drop in more than eight years. . .
flow of currency would further complicate an already difficult in¬
vestment problem is no doubt responsible for a part of the spirited
bidding that has been in evidence in the market. . . .
:
aver¬
It
-
.
cutting debt charges in the future.
as far as the deposit banks
By JOHN T. CHIPPENDALE, JR.
age
tablishments lost money.
It might also be well to
Governments"
on
'
The rush to buy the restricted issues reflects in part the fear of
investors that the Treasury will continue its policy of
non-bank
the debt
sharply
by type: of, store
size of store, and volume of
and
15?
29 Broadway,
New York 6, N. Y.
Whitehall 4-3543
THE COMMERCIAL & FINANCIAL CHRONICLE
158
Thursday, January 10, 1946
about that,
(Continued from page 123)
Thing of importance"—well, about
then he stopped to think and said,
,
"Well, we haven't had an impor¬
tant question come up in the fam¬
ily in the last 20 years."
It made me think that possibly
in undertaking to express our own
views therg might be a member of
the family better
qualified to talk
arrangements
plans of housing than our¬
housing and
about
and
selves.
Employment, I have spoken of.
It has so much to do with the sub¬
supposed to talk
about,
There probably isn't any
industry that supplies more in the
way
of employment
than the
building industry. In addition to
ject that I am
accommodate
Conditions Product of War
It is not
much if any
building for the last five years.
Just that in itself would create a
shortage in shelter accommoda¬
done
haven't
We
residence and busi¬
We can't stop construction
tions for both
ness.
anything that is so important
to us for that period of time with¬
out creating a great shortage.
In
addition, of course we have had
the period of the war, which ac¬
counts for no building to begin
of
with, and during that period fam¬
ines have doubled up and now
the men from the armed services
are
I am re¬
coming home—and
to the
ferring
emergency
condi¬
tion that exists today—and it is a
natural thing when they get here
it is calcu¬ that they want their own home.
lated that there are at least two -They do not want to live in just
off the site to prepare material, the same circumstances that their
ranging back to the forests and wives may have been living while
a
there
Then
(I
2,300
large number.
the site,
on
man
transportation
the mines and the
fabrication—at least it
two off the job for each one
the
and
takes
that there probably
isn't a single industry in the coun¬
try that furnishes so much em¬
ployment.
Is that a question that is impor¬
tant at this time?
Gentlemen, if
on
the job, so
v
the way things are,
would indi¬
it isn't today
the trend of the day
to be just as im¬
cate it is going
portant in the very near future as
the matter; of, housing itself.
I
industry
suppose there isn't any
in which
there are as
large
a
firms and
number of individuals,
corporations prepared to carry on
th^t business as in the business of
construction.
Housing Shortage Acute
V.
is
There
shortage in
It takes two dis¬
great
a
bousing today.
should
tinct forms that I think we
is the long-range
One
consider.
providing
of
view
permanent
housing and the other is the tem¬
condition
porary " or
emergency
that exists today.
they were away.
At any rate,
with all of the pressure to get the
home, it is natural enough
after
being in the Army this
month, about the same num¬
month, and that will con¬
tinue through February, and then
the
number
returning will be
this
ber last
gradually diminished to some 30,000 in June.
/'/•' * ■//••'./
Well, in addition to those that
families, married for some
have
could
40%
about
units
all
of
classified
are
these
of
sub¬
as
Substandard in its defi¬
standard,
nition ranges,
of
running
I am told, from lack
water
and
maybe
major repairs, to central heating,
hot and cold water, separate bath¬
I think
and toilet facilities.
rooms
that this report is
probably exag¬
gerated. At any rate, I can imag¬
ine a farmer, proud of his stock,
proud of his outbuildings, being a
good deal resentful when some¬
body, as he would say/ from the
city* undertakes to tell him what
constitutes satisfactory living con¬
ditions and that his home is un¬
sanitary
calculated to amount in numbers
to
I think
consequence, these
unnecessarily < en¬
larged.?-1 think that is probably
reports
of
true
not
as
a
are
cities
the
treme
case
well.
as
to
necessary
to
go
reported by
worker who found
a
It is
that
a
ex¬
welfare
liv¬
woman
ing in very unsatisfactory sur¬
roundings, squalid conditions, and
with -a good deal of effort she
arranged
to
have
the
woman
moved out into the country.
She
got a nice sunny room for her,
fresh
air, and
arranged for
Then,
after
four or five weeks, she was mak¬
ing a visit again to that same
tenement and found the old lady
her
even
maintenance.
the
on
dirty
floor
same
conditions
what
she
was
why,
and
the
"Well,
me
and
and
doing
old
the
same
her
asked
there,
woman
likes peoples;
and
said,
units
no
is
a
me
desirable form of even temporary
think that there
good deal of over-statement,
exaggeration
of the
actual
num¬
ber of so-called sub-standard
cupied
dwellings throughout the
country, in the cities and farms,
prefabricated structures have not
It hasn't been
materialized at all.
possible to
responsible
find
any
manufacturer who is
prepared to
manufacture and deliver them.;'
Hn
addition
thereto, it is pro¬
posed to bring to the city 5,000
transit huts, about as undesirable
a thing as you can think of hav¬
ing here. They look like a large
sewer pipe
cut laterally through
the middle
and then stood up on
ground, like that, which are
now the property of the Navy De¬
partment, which has been asked
to release them as material not
the
time their
that
own
the
creased
there
Then
relatives
returning.
are
informed, who
residents'of
not
coming
several
are
friends
situation.
emergency
back here, we are
are
or
That has in¬
New
York
New York State who
would like to stop for a while and
see the sights of New York.
So
that is our emergency situation.
City'
or
City
Mayor O'Dwyer has had a com¬
appointed who have been
studying the situation and I have
mittee
been
quoting
figures
that were
put together by that committee.
The report which the Mayor has
adopted provides for some 43,300
units and nearly all of it requires
some
legislation either by the
State Legislature or by the Con¬
It is recommended that
10,000 units could be pro¬
gress.
some
vided
if
with
the
law
that
has to
to
do
with
old-law
tene¬
could be converted,
about 10,000 units; again the mul¬
tiple family law must be amended
to
provide for increasing onefamily to two and three-family
dwellings.
It is recommended
that
only those that are con¬
ments,
that
cluded
of
in
some
brick
such
should
be
in¬
in
there may be
category, but,
cases,
frame buildings likewise in¬
cluded.
The Governor has already taken
to
make
use
of
military
barracks that can be converted to
provide family units at the ex¬
of the State, and that would
pense
vestment,
reinforcing rods.
They were
cut for our length and bent
for
purposes, but
them.
Well,
our
the Army
after
for
return of principal.
the City has had to
good deal of that
and it can only be done
or
Therefore,
undertake
a
form of sub¬
some
sidy, but there is
opportunity
the City
in
cleaning up some of these unsani¬
to
with
cooperate
tary
an
-
It isn't conceivable
City could take care of
areas.
that
the
all of them.
I feel I
should
mention the
tions in New York and the effort
made
to
get cooperation
from
private enterprise to do the things
the City finds it impossible
that
to do and to the extent that work
should be carried
on
at this
considerable discussion and nego¬
Park
Commissioner
Moses
very,
very
half.
agreed to give them
The fact is, the Army never
paid
for
wanted
some
tiation, we
they
half;
the
never
they left them
carted them away;
the job until they were
and we had to get rid of
rusted
them,
I wasn't
speaking of that in par¬
ticular, but defnitely speaking of
the action of the OPA, who could
not fail to know the additional
cost that
under
put to, building
conditions that would
were
we
war
not allow us to charge a
rental to
from
time.
was
speak
can
the
urge
largely from him, and sup¬
ported by the Mayor, or rather by
the Mayor directly and then Moses
following it up.
Thus we have
came
im~
some
t
the nature that I
the way of private
provements, of
speak
of
in
enterprise.
It
is
/,■-.//,
evident
administration
use
that
is
"•
the
,
..
present
going to
make
of the services of Park
Com¬
missioner Moses and I think he is
very efficient and a very capable
public servant and that he knows
a
reasonable return
the cost of the improvement.
provide
active.
I
experience that
been able to undertake
of them for scrap.-
some
in¬
terest taken by the last adminis¬
tration in improving living condi¬
on
a
cumstances, and a great deal of
difficulty in building because of
the difficulty in getting materials,
this situation probably better than
else in the administration
in consequence, I think we
are likely to get some defnite ac¬
tion by the new administration.
anyone
and,
>,
It is noteable,
the case of choosing
also, that Moses*
associate, Mr. George E.?
Spargo, is becoming the Deputy /
one
time having been taken by Mayor.
Whether we are in favor %
the ^Army.
Materials and labor of this administration or not, I
which we undertook to send there have very great hopes that the *
frorrfhhe ?East were immediately very subject we are talking about, /
taken from us for other activities the interest of housing people in /
when
we
got them out there. New York City, is going to? be j
; /
Completing half of the project in very much advanced.
one
city and two-thirds in an¬
Obsolescence Greater Problem
other,
when
we
proposed
to
Looking at what might be re¬
charge a rent which would make
desirable
conditions /
only a fair return on the cost of garded as
two
the operation, the
into
come
again.
Use
It
seems
step back, but the Health
Commissioner,
a
broad-minded
like
a
definitely he doesn't
this emergency it is
the lesser of
evils and, therefore, he raises
man, has said
like it, but in
objection.
no
each of these proposed
individual > or any veteran
coming back is ever going to be
satisfied until he gets something
in the way
of a permanent home.
something might be said
everi in the emergency in refer¬
ence to some of these plans.
Par¬
I think
ticularly the demountable build¬
almost as long,
if it takes
ings,
could
be
sawn
sections and
into
transported here to be re-erected,
connected with sewers, with the
water supply and with various
other facilities—the time gained
would
little
seem
worth
to
me
while
to
be
almost
to
compared
using the same location and the
facilities for something in
same
the
of permanent improve¬
way
ments.
I
Well,
doubt
whether
anyone
satisfied
until
of
a more
we
very
much
is going to be
get something
permanent character.
-
OPA Rent Ceilings Prohibit
Building
I
did
more
mention
individual
that
there
and
are
cor¬
porations prepared to carry on
building than in any other activ¬
ity of business that we have, and
I believe that they ..are raring to
,
wonder why they don't.
I think it is largely because of
regulations like the OPA that
make it almost impossible for a
builder, with a ceiling on rents
fixed by the OPA, to undertake
new
consruction, knowing when
he has finished his job that at the
present increased cost he is only
going to get the existing rental.
He just can't do it.
I
speak
somewhat
feelingly
go
and
we
OPA said, "No,
rents must be comparable."
Their comparability appealed to
based
be
the
upon
number
of
the size of the living rooms
bathrooms, and whatever the
facilities were, with no regard for
rooms,
and
superior quality of what we
supplying, and the character
of our operation there in a land¬
scaped park-like development, a
nice place to live.
We said, "Let
us see these other properties that
the
were
you
would make the comparisons
In
one
case,
we
said,
with."
,
are comparing
the
number of rooms, the same
"Here/ you
same
size rooms in
houses in a row of
buildings that face, on the street
walk,
practically ■ on the side¬
compared with our prop¬
erties
which
and
are
are
jso nicely lo¬
We were told—and I re¬
cated."
it
member
well—that "you
leads
to
me
think that
have
we
to
fight obsolescence in this coun- »
try more than we have deprecia- /
tion.
The improvement in the art
of building has come so rapidly >
that anything
that is 30 years
old, or thereabouts, is regarded as >
old-fashioned, and it has seemed
to
us
that
the best
protection V
against obsolescence is light and ?
air.
•These
old
regarded
that
tenements
are
unfit to live in, unfit ?
from the standpoint of health, are /
built on ground that is pretty well as
covered with
a
buildings, sometimes
front tenement and
a
rear
tene-
•
•
ment, or they are built so close >
together that they may have air r
shafts, but no light shafts.
At ?
any rate, the modern
is the best protection
solescence is
There
plan which
against ob¬
light and air.
is
a
good deal of talk
opposition to the plans
Francisco," where it happened to' I am thinking of, with respect to ,!
be, that "people thfere liked to be density, I think by well-meaning able to roll out of bed and with
people
who
haven't
thought
one jump land on the sidewalk."
through that subject of density/
That is a smart-aleck answer of a not realizing what may be accom- 1
bureaucrat clothed (With some au¬
plished by increasing the height !
of the building. ■■■■•
thority.;
U//,? / :
don't
very
know
That
conditions
in
San
situation
in
New
the
is
and it isfimportant that
something be dond/in that direc¬
tion.
I say there is plenty of
York now,
opportunity
firms
close
all of the- lumber on the Coast at
your
-
any
multiple family dwellings
changed; also, laws that
have
of
Well, of
Fair Return Denied
housing, that
desirable, it would .f*' We had even a worse condition
in California under similar cir¬
but perhaps the most
do
were
Army
commandeer all
to
all of the temporary
bring them into use and to relieve
this situation.
It isn't likely that
are
all
The
amusing.
undertook
our
incident there that
one
was
almost
for the Navy.
necessary
there are a great many,
told, who come here from
we
on
exacted
were
on
Solution
No
other parts of the country to wel¬
come home or receive for the first
quence,
action
oc¬
so-called
The
plans that attempt to take care of
things .temporarily may be seri¬
ously objected to, but again it is
an emergency, and I think we all
have to do whatever we can to
exceptional
to
There
buildings and trailers, not a very
accommodation.
materials
priorities
were
-is
about 6,000
by transporting demountable
proposed to provide
I think
New York City is the
place where the ships are landing,
the port of entry, and, in conse¬
Of course,
structed
me
likes stumps."
It leads
vided.
Needs of New York
sub-standard.
or
it is
The
enforced, and on the one hand
urged in every possible
way to provide for the housing of
people, and on the other, every
possible delay put in our way.
be con¬
In addition to that,
verted.
or
140,000 that would need hous¬
units, and it would require
I know, and you probably know,1
about 43,000 units in all to take
that there are all together about
care of the 140,000 in number, and
24,861,000 family units in
the
that hasn't anything to do with
United States,
according to the
the 15,000 of single individuals
report of the last census. 2.0,598,for whom a place should be pro¬
000 of those are in the cities and
that
also
very
and
There are 2,000 bun¬
that
galows
materials.
we
in the sum¬
lesser rent for the rest
a
was
where there is
critical
could have the usual rent
and
location that
a
work,
the
for the four months
mer
a
got along with the work, but we
had the most terrific time to get
properties in the matter of
adjustment of rents so that the
of the year.
United
Washington and
housing project there.
possible in those areas
private capital to build and
attractive, ? We went down there,
newlyweds, just to get the is the least
picture, it is reported there are 15,- seem to me,
000 single individuals who need
acceptable, because as soon as the
accommodations.
Of the 800,000
emergency is over, we will prob¬
coming back this month and next, ably get rid of them. ?.
it is reported that about 90,000 ;
If you notice the figures, they
come from the State of New York,
amount to about 43,300 units, tem¬
and half of that number, or 45,000,
porary.
That must be done. We
from the city of New York.
Well, may not like the i dea of ^changing
that makes quite a task, to take the
multiple family law; permit¬
care of as many as that, which is
ting the old-law? tenements to
time,
ing
14,263,000 in the suburban com¬
munities, and this report states
report)
those
owner
up
the
to
come
We found
that could be
used the year 'round, provided the
OPA will satisfy the owners of
men
length of time that they want to
get back. It is reported to us that
there are somdthing like 800,000
from the armed forces returning
this
in
were
of
President
put
cottages
summer
get
from the rentals that can be paid
in those locations any return in
the way of interest on their in¬
States to
something like
are
speaking of the fig¬
am
that
ures
3,000 families.
some
very
#
the
then
Housing
Main Faclois in
isn't
because we had some
experience, during the war, of
course, when there was more ex¬
cuse for it.
We were asked by the
firms
can't
do
Individual
corporations
and
pared * to
here.
are
pre¬
proceed,' but they just
it
unless
there
is
some
arrangement made whereby the
ceilings will be taken off, It seems
to me, altogether taken off of new
construction, and something of
that
sort
is
necessary
to
get
started.
I am talking about per¬
about and
An Illustration
/
To illustrate
it, if I can, in a
if you had a
simple
way,
siderable area
decided
exceed
prove
that
a
it
with
which
it
con-
'
was
density should not
figure, to im¬
as to get sufficient
certain
so
return from
necessary
in
very
to
rentals it
cover
one-story
was
found
the whole
buildings.
area
You?,
density, but the
one-story buildings would prac¬
tically cover the whole land, with
very little space for light and air.
manent buildings, of course.
Now, if you just double the height
of the building, you release 50%
Slum Areas
of your land and still keep the
For the future, isn't it likely
same
density, and if you go to
that we are going to have very
four stories, you will have the
greatly improved—at any rate, we
same number of people and you
are making progress toward that—
will occupy only 25% of the land.
conditions for people who live in
I think it is easily understood that
what we call the slum areas? * It
would
have
the
■.■■I
Volume
Number 4454
163
THE COMMERCIAL & FINANCIAL CHRONICLE
you can go to 12 stories, and every
story above the ground floor will
tractors
be
without
carry
who
said
they couldn't
City's work now
provision for in¬
the
on
agreeable place to live,
better
light, better ventilation
andf through the use of elevators,
there is no more effort to get to
that
the
had to tell him that
more
a
12th
floor
than
there
is
ample
crease
crease
the
first
in cost of material and in¬
in cost of labor, why it was
could make progress.
I
we
floor, and then occupying
only 25% of the land, you could
increase- your density
threefold
without
creating any condition
the
judges, Judge Knox.
must
we
the fundamental
that
had been
we
He said that
the prijn-,
ciples by which individuals live
quietly and securely must be ap ¬
plied to industrial strife. Can you
think of anything that is nicer in
its objective?
How we are going
to get there, I don't know.
I don't
want to speak of that, either.
unfavorable
is
comfort
It
of
or
to
seems
the
things, the steel,
windows, the ce¬
bathrooms, elevators,
casement
ment,
the
U. S. Achieved Victory
won
a
refrigerators, etcetera, in fact, all
We
are
of what I say are the fundamental
the
United
future.
are
We
have
had
parts of the structures, and we are
going ahead, barring delay which
may
come
from trouble with
labor—there
may
be
organiza¬
tional disputes, or there may be
disputes within their own organi¬
zations which may delay us. Bar¬
ring that, we will be ready to
have tenants in three operations
by the spring of 1947, and all to¬
gether, we will have accommoda¬
tions
for
about
43,000
people.
That is a real contribution that
we are making in this situation. '
sia
in the
Bronx.
Now, happily, we
housing between 35,000 and
40,000 people in one project.
If
we
hadn't that, it would make
are
it
much
difficult
more
present time to take
the
at
of this
care
situation. .' There were
things that were not
finished, because the war came on
emergency
little
some
■
and interfered with our getting
! materials; but there is a commun¬
ity with a population equal almost
to White Plains
it has
and
Taxpayers and Subsidies
Poughkeepsie,
or
of the
all
community
I
requirements—a good moving picture theater; Macy has a branch
$ there, we have chemists' shopsdrug stores, as we say—a library,
family stores of all sorts, and
there is
occasion to leave that
no
community for anything that one
needs in the way of comfort and
living.
Density Unavoidable
have
We
undertaken
have said that the tenements
the slum
or
projects
clearance operations
only be carried
can
with
on
some
form
of subsidy, but there
are
people in the next income bracket
who pay their way; they do not
want
assistance
of any kind, but
paying their taxes, are
contributing their part to provid¬
ing accommodation for people in
through
the
;
■
much
that
lower
bid
fair
income
to
be
brackets
than
better
not
far away from the business
center.
We have had a good deal
those they occupy themselves.
I
speak of ^that ; because for those
people in that next step in the so¬
of
cial ladder of whom
here
Manhattan Island that
on
are
opposition 'from some people
who speak about density.
I have
tried
to
explain under our plan
we cannot
have an unduly large
increase in density, but material
i
am
think¬
ing, private capital can cooperate
with the City, to provide housing
where the rentals
As
means.
are
within their
this subject have come to oelieve should be the limitI uon't
ing almost from Houston Street Jo
want
improvements }: extend «north ) to
23rd
Street.
This
cooperation
with the City transforms a whole
our
to get the wrong im¬
Even under the plans
speaking of, the density is
you
pression.
we
are
far
less
than
tenement
the
down
We
sition
'<
well
are
along with
We have had
now.
from
various
*,
.
these
win
We
Appeals the question of constitu¬
tionality
of the redevelopment
law, and all because some wellintentioned, I dare say, people be¬
we are
not
doing
thing
a
which
they think should be done.
one experience with one
whom you all know..: He
looked at plans in my office be¬
I had this
m&n,
fore
started
got
we
and
liked
them very much.
I said, "It is a
tremendous
improvement
over
anything
York."
have
we
He
nature
might trip us
failing to record
and universality.
that
said,
great
a
"Well,
if this
now,
advance
on
be
anything
have
here, isn't it better to do
it and have this, or
nothing?" and
he didn't answer me.
The only
we
conclusion
would
that
was
along using
go
unless
our
not}
or
we
money
for
some noble
experiment which
he thought was desirable to
carry
out, it shouldn't be done. '
-
135th
to
Fifth
Avenue
Drive.
138th
It is
committee
has
reported should be provided, that
there are 16,000 made possible
by
the rehabilitation
law, although
not
immediately, and I think
there
isn't
doubt
any
that
that
that
number will be
about
provided, because
12,500 of them are in opera¬
tions that
where
we
we
have well along now
are
removing the
ent
structures;
the
foundations, and real
is
being
made
build and,
our
we
are
operations
ing to embarrass
the
presence
progress
ready
we
me
of
to
started
long time
a
The late Mayor I think
pres¬
putting in
getting
fortunately,
was
ago.
will¬
by asking in
several
the
East
River
admirable location
an
There
operation will be the
others that
are
same
as
the
have planned and
we
building, in that it will be in
practically a park-like develop¬
ment, with green grass, trees and
flowers and shaded paths, such as
are
haven't
we
But
we
got
instead
are
building
on
it
doing, we are accused of
a Jim Crow settlement,
is
resented
such.
as
Of
course,;
I have just been wandering along,
talking of what seems to me to
with re¬
spect to immediate need for longrange housing, with respect to fa¬
cilities that we have today to get
going, but which will necessitate
some changes in the law to permit
emergency work, some changes in
the regulation that will result in
stimulating building, and without
be the present situation
con¬
subject
we
can't
move, v
j
from
this
because, I
around
have
had
no
of just what I Would
I do want to go just
one
step
further, if I don't try your pa¬
tience, getting away from housing
altogether, on the general situa¬
tion, that I might leave with you
one
observation.
cause
been
the
I
I say "we," be¬
part of you; I have
president, and I know
am
the
earnestness
consider matters
with
which
no
everlastingly
England
standing
in danger of
being overrun and destroyed—but
continuity and regularity as
come to expect from the
it
knowledge
for
grateful
firm when
she was
the aid that
was
from this
came
pouritry that made it possible to
win the
in
war
Certainly
the
Europe.
we
the
won
in
war
Pacific
single-handed.
That
was
an
accomplishment of our
country.
What I am getting at is
this, that if we did this—and there
is no question about it, and no
disputing it—does it not carry
with it a great responsibility to
bring peace in the world? At the
moment, of course, there is an up¬
rising in Iran, there is rebellion in
Java, there is active fighting in
China, and I suppose disturbances
in many other places, but must
not find
we
permanent
and
is
what
do that?
for
our
of bringing
into the world,
responsibility to
the
whole
World; of course
have got to help
We
of the older countries in Eu¬
some
Germany itself.
rope,
Must
When
I
Win
most
a
world,
of
about
exterior
the
the ability to discover
even
fission, knows very little
about
his
inward
One
nature*
thing he has not learned; how to
regulate himself in relation to his
fellows.
Man's
effort
at
govern¬
ment, whatever form it has taken,
has
never
been an outstanding
It has always been on a
and error basis. No govern¬
success.
trial
ment has
ever
maintained its
stitutions
unmodified,
in¬
its
su¬
for long. At this
most governments in
mo¬
or
premacy,
ment,
world, including
that
to live
men
world,
Peace
—
men
shrunken
con¬
splitting
is
govern
them¬
in
selves
world
ea&i citizen of the world may have
material plenty and yet freedom
selves."^
to
that
won't
do.
national
basis
and
develop individual talent to its
We
highest fulfillment 'not inconsist¬
ent
and with total
of
the
things
like the
atomic bomb, to speak of the labor
situation and, by the way, there
I constantly have in mind the ob¬
servation
of
one
of
our
of lack
cause
or
a
Germany, be¬
of food
condition
could
break
could
you
have
would
and
come
munitions
I think
here,
us
as
of
cept that.
that
earth
pestilence that
a
the
as
army.
all
ac¬
ready to
go
Isn't it
war.
a
that
we are
never
going to
get pfeace in the world unless this
country as a leader will go all out,
and nothing short of that will be
possible to win the peace?
The
outlook isn't very
good, but I sup¬
pose I am a confirmed optimist.
I
am
still young, maybe that has
something to do with it.
body has said that trouble
progress.
God knows
we
trouble
enough ahead
to
that
feel
there
makes
have got
of
is
Some¬
the
us
now
oppor¬
tunity for the greatest progress
that this country of ours has
ever
seen.
'
:/
Gentlemen, that is
tion, that
we are
my
going to
convic¬
go
for¬
best
I
prejudging the merits of the
sides in the political and economic
strife raging in this country. My
purpose is to emphasize the enor¬
mity and intensity of the split in
men's minds. Though the war has
been over nearly five mohiths^ this
has
split
suaged.
only partly been
The ways of peace
as¬
are
scarcely anywhere assembled and
operative. Peace does not exist in
these
United
States.
Unity is ab¬
the peace-making vic¬
sent from
tors.
At the
global level, the primal
of
Union, are poles apart in their
thinking about government. Here
two systems that the rest of
the world may take for a model,
are
with
others
without
or
v a r
i
ti
a
o
h
s.
Whether; they
mean to do so or
not, in the eyes of the rest of the
world they are vying with each
other,
or
other.
compromising with each
1
•
t
It is fair
'
to state
that one
area
of the world is, in the
main, open,
communicable,. with¬
censorship, and under Govern¬
penetrable,
out
ments
which its citizens
to criticize
well
as
Unfortunately, in spite of UNO,
no organic unitive princi¬
ple in sight.
free to criticize,
to
as
are
free
own
and
the world is closed,
..
there is
operate property. Another
censorship, and under
T
At
no
time in world history has
the schism in men's minds
achieve
to
been
sharper,
contested,
years.
or
than
how
on
co-livabiiity
peaceful
more
in
violently
the
past
This is true within the
tions, and
as
30
na¬
the nations.
among
of
the
Great Global War of the 20th
installment
cen¬
second
tury, now presumably ended, but
which may be merely a quiescent
interlude to a third installment,
constitutes mankind's greatest ex¬
plosive clash of ideas. But it has
brought peace, nor unity t nor
good-feeling. It has only proved
not
how the effort for unity
is not to
be achieved.
their
age
or
disunity in Ger¬
many,
represented by, 13 or 14
shades of political opinion, had
become
so
unbearable
by 1933
of
to
Govern¬
are
not
own or man¬
property. Some¬
is
semantically
Democracy, the
other, Eastern Democracy.
own
the
Western
This
one
open
breach at the world
level communicates
a
counterpart
breach at national levels through
nations of the world. Clos¬
this yawning chasm is not
many
ing
helped by the fact that the ap¬
pointment of fact-finding commis¬
sions to
the books to investi¬
scan
gate the merits of the contending
systems would not be reciprocally
appreciated. The open and com¬
municable part of the world ipso
facto permits propaganda dissemi¬
nation and infiltration from the
closed world, but the closed world
insulates and
isolates itself from
counter-action
internal
The
a
ment in which its citizens
times
Come
area
insulated, nonpenetrable, incommunicable, with
called
Peace Yet to
The
ready to
were
all out to win the
fact
the
over
are
We
and
much harm
an
we
dis¬
something
spread all
would do
that
there
out
freedom
the
am
peace?
:
The answer is obviously no, un¬
less there is a unitive principle
universally operating.
clothing
or
shelter, could become in such
debilitated
ease
world.
We
from
need
the
take
to
open
good,
a
large-scale, look-see at each other,
rather than doctrinaire argumen¬
tation out of Karl Marx.
that Germany accepted
Hitler. He
promised jobs, security, unity, and
the righting of wrongs. He actually
achieved one kind of unity by
swiftly creating an all-powerful
State,
whose
will
was
supreme
Conflict at Home
Now
take
look
a
at
ourselves.
The
superficial unity observed
during the war has now faded.
We are once more engaged in the
and enforced by an
before in this
country of ours, and
all-pervading
police—the Gestapo. The
price of this unity was to destroy
conflicts
secret
merged, not resolved, by the dis¬
cipline of the war. We cannot
all the freedoms
if that sounds too
blink the fact that
The State was substituted for the
ed
church and
civil
ward from this time
progress than has
sorry for you,
country and
on
ever
with
more
been made
optimistic, I
because this is
we are
am
our
ever won
religion
the author
as
of the moralities.
for it.
by man.
-
that
were
nation. We
war
war,
we are a
are
more
between
only
at
sub¬
divid¬
ideological
serious than the
States, because
the
the
J. R.
Baylis Joins Staff
J. R. Baylis,
formerly Lieuten¬
ant U. S. Coast Guard
now
&
Reserve, is
associated with Lazard Freres
Co., 44 Wall Street, New York
City, members of the New York
Stock
was
Having
thus
unified
and
issues are subtler and more
strengthened itself, Germany then complex, and because the fighters
the triumph of a larger are civilians. Industrial warfare on
unity—the conquest of Europe. its present dimensions is qn omi¬
mid-Asia, and possibly the world nous symbol of the deep-seated
under
a
German
condominium. character of schismatic rupture.
essayed
Of Lazard Freres & Co.
do
interest, and it is al¬
temptation now to speak
some
ture of the world?
with
rulers, have, been humbled- to
that
so
to kill
certainly went into the war
or be killed, and we didn't
help Russia, we didn't do
it to help France, and we didn't
do it to
help Great Britain or
anyone else; we did it for our¬
selves.
Now,
haven't
we
got
pretty nearly the same situation
facing us with respect to the fu¬
its
dust.. Now I am not pointing an
accusing finger at Russia for the
purposes of this discussion. Nor
forcing
a
apart. Man is woefully divid¬
ed on the spiritual plane. If you
„both a
community
the
robots to follow blindly the will of
strongest nations left in the world,
the United States and the Soviet
men
on
now
a peace¬
in which
State ^educed its citizens to
genera¬
together in
question: Can
conditions
obstacles to
are
technics
ideologies
are
Two powers
schism lies in the fact that the two
but man's mind—his
flicting
as
ful world.
in
are
own*
The terrible fact of
tion is
Japan
and
eliminated
our
our
crisis.
Germany'; my* first reaction is to
say, r "Let them starve," let them
die; they brought it all on them¬
W
power, without moral sanctions, if
aggin attempted to forge unity,
coi\ld only bring the same sequel.
the
object to the word spiritual, the
statement may be recast in this
,
the
think
the
inanimate world. The paradox is
that man who is so proud of his
way
We can't be Santa Claus
can't.
we
some
peace
we
such right to assume
have
we
atomic
we
that have to
with public
of
My point, of course, is that in
dealing with human nature and
same
fail to be
can
morality
Unbridled
Unity Absent
have
never
me
from
her destruction.
Germany
man's institutional structures,
to
seems
led to
'
,
we
it
uncoupled
Frailties
Human
dom—and
:
long about this
probably wandered
and
memoranda
say.
one day
uniformity
up
by
country., As for the United King¬
Park Avenue,
of appreciating what
I have talked too
dealing with the present situ¬
ation, I failed to list in the 43,300
this
Streets, and from
public
schools, ; churches,
library
and
playgrounds in the vicinity. That
Real Progress Under
Way
In
which
call Riv-
we
It extends from
to
for the purpose.
which I feel
units
that
erton in Harlem.
that doesn't change the
fact that we i are going along
with it. .4;
He said, "That is right."
I
this
and
particular reason."
a
set¬
was
was.
it
"But," I said, "you don't like them
for
blight
know
in
aid
that
us
do it to
where
New
in
got
agreed
^de,tpur
We have onev operation (I don't
whether you are interested
*
hadn't had
she
to
occur
124)
page
power,
the
.
oppo¬
sources.
have had to go to the courts.
We
have had to carry to the Court of
lieve that
the East
on
the
on
planners think it should be.
projects
Street
,14th
tfu: section
ting in.
den-ily i..
districts
East Side of New York, but it is
more
than
some
our
our
City
,
did
All of the strength of Rus¬
would have been ineffective
illustration, with
an
thinkers
what
over
on
*
if
the municipal operations,extend¬
increase
•
States
(Continued from
variation, but again with the
major premise suspended. Only on
no
war.
experience with' it. The President
spoke of something that we did
:
just one thing.
We
against the aggressors.
justified in saying that
war
to'look
we
Outlook for 1946:
reflection does it
is
There
;
that is the form
me
it that
to
see
had contracts made for all of
we
anything ofV that sort.
or
improvement
for in
health
to
working on it for a period bf
nearly three years, and the fact is,
159
The attempt nearly succeeded but
failed
because
the
rest
of the
world joined to resist
not
backed
many,
Exchange. In
the
with Shields & Co.
past
he
of
the
up
total power
by morality. Ger¬
then, is the classic example
failure of sheer force to
promote unity. Its sole reliance on
You may define the issue of
conflict in whatever way you
this
like.
it is a quarrel over
how best to use and
manage property; how to distrib¬
ute the product of industry in
(Continued on page 160) ;
Basically,
property;
■
in
Outlook ioi 1946: Confusion
If we believe in a free
economy; the effort of labor to use
its freedom for higher wages can¬
not be criticized. ■ But the rule
productive process..
..
should work both ways. You can¬
For the sake of simplicity I will
not have an economy work which
attempt to define the nature of is half free and half controlled.
the
conflict, though actually it
The release of wages from con¬
(Continued from page 159)
shares that will approximate the
contribution of each agent in the
is
complex,
as
follows:
shall become a so¬
with Government
more
Whether
we
state
cialistic
of key utility indus¬
tries, including banking and in¬
surance, as in England, and other¬
wise
planning
and controlling
ownership
•
consumption, wages,
profits, or be given
production,
and
prices
greater powers,
-even
whether
or
the system of
enterprise and competi¬
tive markets under the framework
of the constitution.
>
'■ / ■
shall return to
we
voluntary
,
going on
internally since 1933.
We cannot
be a united people, we cannot be
a United States, we cannot exer¬
cise a convincing leadership in
this World either as a model for
peace, or as a model of highest
living standards, until we recover
the unity we once built and cher¬
ished, or discover the basis for a
new
unity.
We cannot predict
What
production, sales, wages,
prices and profits will be, with
any confidence, while, by laying
violent hands on them, and threatherring their flow, we cut ourselves
continuation of sell¬
trol, but the
ing prices in control, do not add
up.
There would be sense in re¬
taining controls on both wages
prices, or in abandoning both
simultaneously. This lop¬
and
will not work
sided arrangement
off from the means
of life,
painting
with a fast brush more in the
manner of a working anthropolo¬
gist than an economist or statisti¬
cian.
Now I wish to relent a bit,
been
have
I
far
There is
shape.
external debt.
no
The internal debt is small, relative
Except for the
to most standards.
war
swiss franc is
The
balance.
strongest
currency
American bank
the
itself in
notes are not ac¬
ceptable in internal trade.
The
Citizenship is not homogenous, but
a
blending of three or four sep¬
arate national origins,
speaking
three languages. The cultural
tern is among
The
the highest.,
President
.
have outlined
we
firmation
■
the firm
as a
placed
not choose
to
Nor could it relieve itself of the necessity
under the statute of acting as
v
.
broker by sending
a
a con-
purported .'principal,The decision initially
-
made
by the firm to recommend the purchase of a secur¬
ity which it did not own was a voluntary decision which
committed the firm to the role of brokerage. - That role
pat¬
.
of
one'
act otherwise.
.
as
brokerage position and it could
a
the
Ministers,
all of
elected by two Houses
Cabinet
seven
is
such
transactions
Europe.
in.
„
.
is within
budget
the
years,
Thursday, January 10, ~ W46
circumstances the; firm must 'fulfill: the
obligations of
brokerage in the transaction; among other things, to re¬
frain from acting adversely, to refrain from
taking secret
profits, to make the best deal for the customer at the
best price obtainable, and to confirm as agent making
specific disclosure of the amount of its remuneration; In
Split Society
a
controls
7 could riot.be changed without explicit and informed con¬
sent in each case prior to the completion of the transaction
or explicit and informed ratification afterwards and non¬
ecutive is not selected by popular
vote.
He serves as President one
action of the customer upon the receipt of a principal
year only; never two years in suc¬
confirmation did not, in our opinion, constitute such ratifiv
struggle; between the enterprise cession; V All the ministers are
7
;}VV'"i777.7- 77;7<7'"'77:Y 7 v7 j
system and socialism. A
v; elected for four years, and it is
Thus, in a basic sense
strike crisis is essen¬
tially a revolt against the OPA.
The outcome of this revolt will
determine
the outcome
of the
for long.
whom
the present
of
struggle has been
The
So
ket places.
*
CHRONICLE
THE COMMERCIAL & FINANCIAL
160
from
Adopt Swiss Pattern
theme of world unity—how man¬
itself in order
and peace—I have a suggestion.
It is to invite a case study of the
Swiss Confederation. The world's
kind
can
govern
the ways of the
pilot plant model of
lions may look at
Here is
ant.
competent
a
that
governance
Thus the Chief Ex¬
among
this
group*
that the
The Commission's attempt to
President and Vice-Presidents are
anthropological
On the broader
are
Congress.
pro¬
rather than
recriminations and emo¬
of campaigning.
tions
Hitler and Mussolini
invaded Switzerland.
not
no
to do
did.
might have
They chose
to
anybody.
a
organized by the free
people in 1291, but
democratic processes had prevail¬
ed among, the states comprising
the Confederation for several cen¬
turies
earlier.
Thus the Swiss
eration
will
character and conduct record
doing
of
injury and inviting none.
no
the
not
high-minded
a
a
horse.
a
four-legged animal,
7
\
,
awaiting delivery to him pursuant to con¬
we venture the opinion the majority," if
all, of the dealers in securities have laid the foundation
an order revoking their registration.
7 \
A
'
or
firmed order,
I venture to suggest that a so¬
on
horse is
a
four-legged animal is
possession,
Guideposts to Universal Peace
lution achieved
unconvincing because it is equivalent
If every dealer in securities who sells as principal must
have those securities which he sells in his actual physical
was
of
V
dealer, is alarmingly disturbing.c
justification, of the statutory definition of
arguing that because
every
It possesses a double shield:
and what not to do, to get along
use, as
the term "broker" is
Switzerland offers
It never
so.
to
threat
The
;
.
consciousness of limited ambition;
The Swiss Confed¬
as a
legislate the circumstances,
create a duty to act as a broker
smears,
vides most of the answers of what,
in this world.
of them, which
some
or
rotatively elected.' This puts the
executive, officers above the heat,
for
though miniature-scale basis could
also be won on a national, and
then
,
.
dealer employing 20 salesmen has
have had eight centuries of expe¬ universal scale. The necessary in- in his possession a certain number of shares of security "X."
rience in practicing democracy, or
gredeints, as taught by the Swiss Believing this security to be a sound investment, these sales¬
and make two finishing observa¬ five centuries longer than our¬ today, parallel closely those for¬
men or some of them advise clients to purchase this security.
tions: one economic and one phil¬ selves.
" " ;■ 777' mulated by the founding fathers
osophical.
*:■
,7
Let's look at the record. Except some 160 years ago.
They con¬ Such advice, of course, is not given as an investment adviser/
:
:
for
has
observation is
this. The materials of price infla¬
tion about which economists have
economic
The
warning to no avail since
1933 are now exerting their pres¬
been
intensity
in our history.
Instead of three
years of deficit budgets,
which
Worried
even
Mr. Roosevelt in
1933, we have accumulated 16
year s
of
successive deficits,
amounting to $278 billions.
The
the greatest
with
sures
religious war,* Switzerland
been engaged in war;
a
never
internal
either
dependent
is the most anti-communistic na¬
tion in
Europe, and perhaps in the
world.
It has not maintained dip¬
lomatic relations with the Soviet
Finances Orderly
public.
These
hived-up wartime savings repre¬
sent extra purchasing power that
has not yet exerted its force on
prices. This is over and above the
concurrent new purchasing power
that will be generated by the pro¬
duction and marketing of peace¬
and services.
!■
*
having
made
inflation
its
bed, Government policy is against
So
in : it.
lying
both
abroad Governments
inflation
counter
are
here and
trying to
now,
by
It
OPA
still
flourish.
30.
Mr.
over
and the Price
Control Act does not expire until
Truman
has
re¬
quested that this Act be extended
"for many months to
come."
The
line must be'held.
Thus the Government's policy is
to return the price of labor to the
adjudication of free markets. But
selling prices
are
not
to
be
turned to the freedom of the
re¬
mar¬
:
<
,
.
•#*/:
7
group,
any
At which stage
,
in these transactions is the dealer obli¬
gated to assume the role of broker? Why does that specific
!
At which stage does the duty of full
When will men by their actions obligation accrue?
disclosure emerge? Why does the confirmation received by
disprove Hegel's cynical summa¬
the customer without objection fail to constitute an estoppel
tion of his philosophy of history,
* V
man
1
•
and
We learn from history that
will not learn from history?
:
i'/
a
ratification?'
\
-77 •)
7a77v77;'.':';' 7r /■7-777'7'\;
the Oxford case does not lie in the result.
revocation order we are in complete accord.
The
The danger in
danger, however, does lie in the uses that the Commission
will make use of this opinion as precedent to enforce, by
indirection, two of its pet
is
V
7;\7v:-.-77
(Continued from page 123)"-
.
unfortunate, however, that, in its opinion, the
have attempted to establish new doc¬
our
judgment, without legal right, which
was
wholly
•.
.
the market to obtain the securities in order to be able to
fill the orders.
"It has been
firm
hobbies, full disclosure, and plac¬
was
acted
called
"voluntary
urged that, under such circumstances, the
as
a
dealer.
as
an
on
consent."
Here
again
we
agency basis with their soNo doubt the consent was
voluntary is another matter
but whether it was
altogether.
given,
must stress what we
have
so
often em¬
phasized before, that in the securities field there exists a
well-established line of custom and usage. Further, that in
the absence
custom
*■:
To
of
any
land.
the contrary* such
prevail and constitutes the
statutory provisions to
and usage continues to
law of the
777'■
S
effect any change
■
7v>;v 7'.*"'/'.•:,7:7
'./''A'.;'-
therein, it is necessary for the
Congress to act.
Interpretations of the
mission
free to act
dealers
which
do not, and may
Securities and Exchange Com¬
not/form a substitute for legis¬
lative action.
This argument cannot
Congress may not delegate such powers.
realistically viewed and tested against the
Whilst viewing with alarm the continuing encroach¬
provisions of the Exchange Act. Section 3 (a) (4) defines
the term 'broker' as 'any person engaged in the busi- ments of administrative bodies on the legislative functions,
ness of
effecting transactions in securities for the account we have repeatedly warned dealers and brokers in the secur¬
of others.
.'
A firm which makes a purchase to fill
ities field to be on their guard.
an order solicited
by it when it knew it did not have the
These new superimposed regulatory innovations which
securities on hand is making that purchase for its cus¬
tomers—in fact and within the meaning of the Act, Such we discuss today serve to emphasize the continuing neces¬
a transaction is, therefore, a
brokerage transaction under sity for that warning.
the statute, and it is a brokerage transaction apart from
The Securities and Exchange Commission appears to be
the fact that the particular customer may be (as was true
a self-appointed legislature that does not have to stand for
in this case) especially reliant on the firm by reason of
stand when
But
prices.
rules,
June
account.
"It appears from the evidence in this case that re¬
spondent solicited from its customers orders to purchase
specifically recommended securities when it knew that
upon receipt of such orders it would have to go out into
promptly and creditably re¬
linquished many of its controls.
Among, the controls abandoned
Was that over wages.
This was
a
by
am¬
To demonstrate this
V-J Day last August, the Govern¬
control
power
limited
physical possession, or
of purchase to his own
small, on the principle of
live-and-let-live.:
voking registration." ~
:
•*
with
for
or
a
unnecessary because, independent thereof, there was*enough
in the record, more than ample, to warrant the "order re¬
ment
the
bition
large
past), and
Commission should
It is simple to explain our cur¬
rent impasse so far as the eco¬
nomics are concerned.
Soon after
so
shares which the dealer has in his
for which he has confirmed orders
j
"
.7*
But it is too late to do any¬
advertised
from the
ing dealers on a strict agency basis. v
:
The Commission has already placed a number of firms
about the excess savings
unless we are determined to
stall production.
not
(as crystallyz-
ing the best that has been learned
ASelf-Appointed
control—that is,
the symptoms rather than the root
thing
for law and order
in securities.
respect
workmanship,
usurpation, we quote in part, at
means
of
attacking length, from pertinent portions of the opinion: 7,
price
cause.
relatively ship¬
are
for
stinct
that:
"
only given incidental to the services rendered as dealer
'7;7.5- r<
77.777v7/:7. 77;
'•7;' 7;
The actual sales of security "X" exceed the number of
responsibility, intelligence,'an in¬
With the
trine, in
Attacking the Symptoms
But
Its finances
the
of
time goods
Vol-
Union since 1921.
in
posits, and Government bonds
hands
a
hut is
freedom with
sist of moderation,
no
unless it be sense
and scenery.
It manages, in nor¬
mal times, to keep one of the
world's best living standards.
It
than the en¬
tire Federal debt of $23 billions
in 1933.
It is these deficits which
have so greatly increased savings
in the form of currency, bank de¬
the
international
Yet it has
resources
alone will be greater
:
upon
trade for survival.
great
It is
external.
or
current fiscal year
the
deficit of
that
us suppose
v.
Intense
Inflation Pressures
7,77; Let
*
.
.
particular trust, confidence, or infirmity.
Under these periodic election.
\
[Volume 163
Number 4454
THE COMMERCIAL & FINANCIAL
FraakK. Tracy WiHi
Pacific Ga. of Caiif.
Charles B. Harding has returned
the
(Special
investment
of
the
New
York
d-a-h
as
a
1 f
and its
active
years
Markets
Chronicle)
Financial
Hope
South
623
United
Donald B.
Re¬
serve.
Mr.
Harding,
who
Stephens Is
as
Chairman
Board
of
Governors
of
(Special
Charles
B.
Lieutenant in the U.
a
South La Salle Street,
S.
Captain when detached to
inactive duty. A graduate of West
in
class
the
Harding served
of
as
1920,
officer
an
members of
Securities Co. of Chicago.
Charles J.
Hartman
has
rank of
also
joined the firm's staff.
;
:
'investment
firm
of
Chas.
Clucas Slock
D.
Arthur
the
present
Barney & Co.
firm
of
Smith,
'
•
E.
dent
of
W.
Trust
of service, and will become
associated -with
Hamlin
&
Lunt,
Marine Trust Building, members
♦
of the New York Stock
Exchange.
Mr.
Darby, who is seventy-four,
had
been
with
Company
•:
the
since
Marine
he
when he started
as
Trust
sixteen
was
a
Co.,
70
Pine
.V
*
.
Which
is
side
fault
at
will win
one
and
victory
a
(Special
The
Last
*
has
OHIO
become
—
week
this
column
made,
and
shoulder
third
the
and
34, stop
ble
between
basically bear¬
Such action is
forces.
Of this
province
ish.
once
trouble
The
is
that
Prior
*
Kline, Inc.
the
Sometimes
of
:
and
35
break
first
42-45.
trou¬
36, but
.
fundamentals.
kets make it
imme diate
more
Last
.
'
v
-
be postponed for weeks.
In fact, the present market,
while it persists in its warn¬
strength than weakness.
is Waukesha Mo¬
one
tors, which has all kinds of
It's
ous.
a
But thin
mar¬
little
danger¬
buy between 21V2
a
and 22 V2 with
a
stop at 19.
f
Jyf?:.
m
-m:
Agriculture
i 1
thereto: he
;.
31^. Some
it
may
•
can
P.; E.
(
be such that it
The
You will note that all the
this
Sometimes
Unstable
An
in
Economy—Theodore W. Schultz—
associated
Vice-President
a
higher
But it must be said
shows
E
show,
prices and recommend their
purchase. With the present
being formed.
now
was
can
-
armed
stocks
certain
#
-
Chronicle)
Financial
direction.
strength
change
McGraw-Hill Book Co., Inc.: 330
the entire .complexion of the
with The Weil, Roth & Irving Co.,
W. 42nd Street, New York 18, N.
Dixie
fundamentals
that
Terminal
Building.
Mr. Y.—cloth—$2.75.
brought
ryr'Cr. v;V
Severin has recently been in the
Great
Britain
in
the
World about the first bear signals.
Severin
was
messenger,
to
CINCINNATI,
or
end
ing signals, paradoxically also
Irving :
A five
through it shows possi¬
bility of 40.
;
doesn't show when a break \ A. M.
Byers — Buy 24-25;
that the present strife is not
big enough to justify the stop 23. Stock ahead between
unexpected. At least, it came
label, "bear market," will 28 and 29, then shows 31-33,
occur.
It does, however, point
Flinkote
Buy 35-36; stop
a
warning finger that the 34. First ' obstacle 38
39,
elect are wise enough to heed.
through that should get to
the
not
•
Weil Roth &
for advances.
room
Ac¬
high. Practically
pointed out that the market strike fear dominating Mar¬
everything that the market was in the
process of building kets, I don't think you'll have
will do, or won't do, will be
what technicians called the much trouble
getting these
blamed on these strikes. You
third portion of a head and stocks at
specific levels. The
will read a lot and hear more
shoulders. The first shoulder stocks and
prices are as fol¬
about the dangers to free en¬
had already been seen; the lows:
terprise. There will be plenty head
formation
was
also
Baldwin—Buy between 33
of charges made by both sides.
Com¬
pany of Buffalo, under the bank's
retirement plan, after fifty-seven
years
&
way
all-time
Emil Severin With
vice-presi¬
as
Marine
partment.'
I
.Y.—Percy
retired
the
Clucas
all
*
will have reached
Street, New York City, members
Exchange,
as
manager of their Stock De¬
Hamlin and Lunt
Darby has
W.
other
read this,
you
of the New York Stock
Percy Darby Joins
BUFFALO,: N.
Dept.
P.
Ambrose, formerly
associated with Hayden, Stone &
Co., has become associated with
Edward B. Smith & Co. in 1938 to
indicated, can
the
stocks up plenty.
will
if further strength
now
news
column.
Barney & Co,, which merged with
:form
strike
is
Mr.
in
army until 1922.
He
partner in 1925 in the
a
even
which
Ithe regular
became
same
six-point average move can
tion will bring reaction just amount to 10
points in indi¬
the same way as the swing of vidual stocks.
It would be
a pendulum in one direction
foolish to shrug aside such a
will bring a counter swing in
possibility, and I have no in¬
some
By the time
an
Exchanges. Mr. Stephens, a mem¬
ber of the Chicago Exchange, was
formerly vice-president of First
N, R. in May, 1941, and held the
Point
Chrowcle)
Financial
the New York and Chicago Stock
commisr
was
sioned
Ex¬
change from
May, 1940, to
May, 1941,
Harding
The
CHICAGO, ILL.—Donald B.
Stephens has become associated
with Paul H.
Davis & Co.,
10
the New York
.Stock
to
the
to stick to the stock market.
With Paul H. Davis Go.
of
the
rally,
works
it does in the market.
How it tention of
doing it. So keep¬
belongs in the ing in mind that the basic
realm of speculation. And in
signs point to an end to the
probable, bear signals dom¬
speculation the writer.prefers bull market, I still feel that
inate market picture. '
■
served
as
By WALTER WHYTE=;
New
But
States
lations
Whyte
Says—
carry
predecessor.
service in the
Naval
Walter
members of the Los Angeles
senior partner
after
foura n
The
Street,
Stock
Exchange. He was formerly with
Gross, Martin & Co. and Bogardus, Frost & Banning. In the past
he was a partner in Kerr & Bell,
fornia,
Stock
Exchange,
to
Tomorrow's
ANGELES, CAL. — Frank
K. Tracy has become associated
with
Pacific
Company of Cali¬
no
ment.
LOS
banking firm
of Smith, Barney &
Co., 14 Wall
Street, New York City, members
163
surprise to manage¬ this figure is the old 1929
Industry's methods rbnge which may not be so
But between
during the war made the minor at all
present wave of strikes in¬ that figure and the present
evitable. Action in human re¬ market
there
is plenty of
as
Harding Resumes as
Smith-Barney Partner
to
CHRONICLE
is that economics
above have stops.
for
in
These are
They are put
frivolous.
not
reason.
a
reaction will carry
Perhaps a
the stocks
under the stops
before a rally
happens, I
Heights, New York 27, N. Y.
if it is a science at all. Fun¬ doubt if the subsequent rally
—$4.0°.
'
•
damentals are man-made.
It will mean very much.
Regulations Regarding Pay¬
ments Between
Switzerland and is true they don't change over
More next Thursday.
Various Countries—Monetary and
night. Behavior patterns sel¬
,—Walter Whyte
Economic Department of Bank for
dom do.
Yet, if enough peo¬
International
Economy—Alfred
E.
Kahn—Co¬
Morning-
lumbia University Press,
reason
is far from
exact
an
science,
is
If
seen.
that
side
.
pause!, Steele & Co.
,
■
in
f v
PITTSBURGH, PA.-Joseph H.
Fauset
Carter H.
and
Harry J, Steele have
formed Fauset, Steele & Co. with
offices in the First National Bank
Building to enga'ge in the securi¬
ties-business.
Mr.
Fauset
was
formerly
Deane &
partner
a
in
Singer,
Scribner; Mr. Steele
officer of Glover &
Inc. >
an
was
McGregor,
;
.
(Special
„
to
Corbrey Go.
The
Chronicle)
Financial
LOS
ANGELES, CALIF.—R. C.
Williams, Jr., has become associ¬
ated with Carter H. Corbrey &
Co., 650 South Spring Street. He
was formerly with W. J. Dunn &
Co., Edgerton, Wykoff & Co., and
R. D. Bayly & Co.
,
Settlements, Basle,
Switzerland—printed in French or ple believe they are changing
that belief with
German—paper—28 Swiss francs, and back
.
Holton, Hull & Co.
New Inv. Firm
LOS
Schrank Rejoins Staff
Of Shaskan as Mgr.
Joseph Schrank, Major, A. U. S.,
released from active
duty, has re¬
sumed
his association with the
;
New
of
York
Place,
&
New
of
ager
Stock
Exchange firm
Co., 40 Exchange
York City, as Man¬
their
Trading Depart¬
Shaskan
ment.
v.4'-1*
:V"-:"'/'
,
>
ST.
LOUIS,
Church
has
MO.-—George
resumed
his
in
David
Chicago
and
F.
was
Commission
his
duties
Chance and Hall Form Own
Investment Firms in Fresno
FRESNO, CALIF —Raymond E.
Hall has formed Raymond E. Hall
& Sons and G. H. Chance has
opened G. H. Chance & Co., both
with offices in the Helm Building.
Mr.
Chance
were
formerly partners in Chance-Hall
& Co..
.
J
•:
•'
Dec.
on
the
Commission
43 months' naval
assigned
been
as
its
Mr.
by
the
Assistant
an
Di¬
Corporation Finance
Previously he has
ANGELES,
with
offices at 210
Street
to
business.
enage
West
in
Officers
the
swing
time
are
Charles
L.
Holton, president; Laurence D.
Hull, vice-president; and Robert
not
Chronicle.
with
are presented at
author only.]
■
They
those of the
LAMBORN & CO.
99 WALL
STREET
NEW YORK 5, N. Y.
The recent top was
der
It is
196.
just un¬
secret that
no
E.
large, long interest
which feels that this 196 fig¬
Holton
ure
Tyler, secretary-treasurer. Mr.
was formerly
with E. H.
Rollins & Sons, Inc.
Mr. Tyler
was
in charge of the accounting
department for
Maxwell, Mar¬
shall & Co.
expressed in this
necessarily at tiny
those of the
views
do
coincide
Seventh
securities
there is
in
a
merely a minor obstacle
the coming advance.
Few
SUGAR
is
Exports—Imports—Futures
people recall that just above
-
DIgby
4-2727
,
oc¬
cupied the position of Director of
Jacobs & Low Formed
the
New NYSE Firm in N. Y.
Reorganization
which
was
Division,
merged into the Cor¬
Jacobs
poration. Finance Division in Au¬
as
gust, 1942.
40
;
r
,
;.
George Graham Thomson died
at
his home
after,
Thomson,
visor,
an
a
long illness.
investment ad¬
associated
was
with
Low
will
be
Pacific; Coast
formed
Previously
for many years he was a member
engage
business.
J.
in
Stock
cobs.
an
and
Ja¬
Harry
Mr. Low has been active
individual floor broker.
nally
was
a
director
and
origi¬
vice-
president of the Manhattan Trust
Company.
.
.
.
Coast Exchanges
•
-
Henry P. Warren, Jr., Manager
department for W. C.
& Co., 115 Broadway,
York
New
York
City, members of the
Stock Exchange/ will
be admitted to
firm
on
partnership in the
January 10th. ■
».
York
York
,
York
*
W. C Langley Admits
Warren to Partnership
New
New
New
Commodity
Schwabacher & Co.
Morgan,
and
Members
Pacific
New
of the bond
Co.
Orders Executed on
as
Langley
&
H. Hentz & Co.
the securities
Partners will be Arthur
Exchange,
1856
Securities
Low, member of the New York
of the investment banking firm of
Davis
Established
January 18th with offices at
Exchange Place, New York
the
Manufacturers Trust Company at
the time of his death.
&
of
City, to
George Thomson Dead
Mr.
and
in
,
Lieutenant, USNR.
as
Commission
A.
Hall
with
Riger has
rector
Exchange
Riger had resumed
after completing
service
and
announced
28 that Martin
with
Noyes & Co. Until re¬
cently he has been serving in the
U. S. Army.
Mr.
Securities
tainty that the majority will
things their way, at
CALIF.—Hol¬ least for the time
being.
Opens
article
ton, Hull & Co. has been formed
invest¬
ment business from offices
at 122
North Seventh Street. In the
past
he conducted his own investment
firm
The
Division.
G. F* Church & Co.
Opens
;
Riger Resumes With SEC
buying stocks, or act almost
unanimously in any other di¬
rection, it. is virtually a cer¬
[The
Chicago
And
Stock Exchange
York
Exchange
Curb
Exchange
Exchange
Exchange,
Board
of
Inc.
Trade
Cotton Exchange
other Exchanges
Orleans
New
Members
New
New
Stock
Cotton
(Associate)
Chicago Board of Trade
York Curb Exchange
New York 5, N. Y,
14 Wall Street
Teletype NY 1-928
COrtlandt 7-4150
Private Wires to Principal
San
Francisco
Monterey
—.
—
Santa
Oakland
■
•,
Fresno
—
N.
Y.
Cotton
Exchange Bldfg.
NEW YORK 4,
Offices
Barbara
Sacramento
CHICAGO
DETROIT
N. Y.
PITTSBURG#
GENEVA, SWITZERLAND
THE COMMERCIAL ^FINANCIAL
CHRONICLE
162
dollar
Business Outlook for 1946
will
(Continued from first page)
iber, employment in trade rose
prevent a disorderly rise in prices, from 7 million in July to 7.6 milAnd yet the year 1946 will
prob-j lion in November, and employably givd the people of the United ment in construction from 896,000
States the highest standard of liv¬
in
ing that they have ever enjoyed.
People will spend more money for
goods than they have ever spent
before.
Frequently their dollars
will not buy very good quality,
and
the
kind
of goods
which
people would like to buy will
often
will
be
not
be
not
available.
quite
Output
high
as
in
as
1945, but considerably more out¬
put will be available for con¬
sumers
and for private industry
because
of
the
.into
one-third
about
1945
in
country's production went
war.
II. What Has Happened Thus Far?
As the basis for analyzing eco¬
nomic trends in 1946, let us note
what has happened in the four
and
half months since V-J Day.
a
The physical job of conversion is
now almost done. The low point in
a
and
the output of durable goods in No¬
vember indicates that the country
is
now
on
the
way
up.
over
half
lion
have
men
been
There
is a further net reduction
of about 4 million to be made in
♦the armed services, This conver¬
sion and demobilization has been
accomplished
with
virtually no
drop in income payments, with¬
out, any drop in the demand for
goods, and with no drop (other
than seasonal)
in civilian em¬
ployment.
Let
me
comment
briefly upon these three charac¬
feared and
has
produc¬
rapidly
as was generally anticipated. Only
54,000 passenger automobiles had
been produced by Dec. 1. This
was only about one-fourth the ex¬
pected number. Refrigerator out¬
put in November was only 38%
of
pre-w&r, and the output of
washing machines was only 50%
of pre-war. The large rise in the
index of' production of durable
goods between October and-No¬
vember is encouraging, and gives
reason
to hope that the flow of
these goods will soon be considerably greater. Surprising and disple
employment
turbing,'; however,
rise .in
has
the
With
the
I
shall
have
in
income.—-Income payments
October
income
were
just
in
payments
were
only 1%
1944.
There
large as
July and
as
below October of
was
a
small
drop of
about 7% in payrolls between
July
and October. This was.
partly a
drop in military pajholls. Payrolls
in private
industry dropped less
than 7%. The
drop in payrolls
was
offset in
the main by larger
income payments to the self-em¬
ployed. When seasonally adjusted,
income payments in October were
only 4% less than the July rate.
No one expected that income
.
pay¬
ments
would hold up as well
as
this.
2.
Record-breaking Retail Sales.
—Sales of all retail stores in Oc¬
tober, 1945, were over 10% above
October,
1944—$6.9
billion
as
against\$6.2 billion. The gain in
department store sales over last
has continued until the end
of the year. The
gain would have
year
been
larger had goods been avail¬
able.
Forecasts that uncertainties
the conversion period would
of
make
people afraid to spend their
money have proved wide of the
mark.
Even in strike-ridden De¬
troit, Christmas buying reached
record-breaking heights. The high
volume of retail demand has
not
been financed on balance
demptions of
war
by re¬
savings bonds.
There has been
a rise in
redemp¬
tions—from $428 million in July
to
$616 million in October and a
great fall in purchases from $1.3
billion in July to $625 million in
October—but, purchases
have just
about offset redemptions.
maintenance of a high
employment.
Civilian
employment in November, 1945,
of
—
was
larger by 200,000 than in No¬
vember, 1944. Despite the demo¬
bilization
of
over
3
million
men
between August and early Novem¬
ber, unemployment in November
was
only 1.7 million—less than
100,000 larger than in September.
was
only one-third as large
as
the amount predicted
by the
War Manpower
Commission. Al¬
though there has been a fairly
This
substantial decline in manufactur¬
ing
employment,
from 14.1 million
July to 12.0 million
in Novem-
termination
of
to
more
about
say
presently because it has a
bearing upon the outlook for 1946
in. The Demand for Goods in 1946
The
will
demand
in
By
allowances
for
time,
goods in 1946
exceed supplies.
is
everyone
well
the
of
huge needs which
during the war and
tremendous
of liquid
acquired in the
main by individuals but to a sub¬
assets which
volume
were
stantial extent by business enter¬
prises also.
000
Since 1941, retail sales
tional
amount by $55 billion. About $45
billion of the deficit in retail sales
represented
by durable con¬
goods. Not all of the deficit
sumer
in
retail
for
sales
future
a
ably
at
Some
will
least
half
the
of
be
demand,
the
but
it
of
basis
prob¬
will
purchasing
be.
power
which individuals did not spend
during the war was redistributed
by purchases of life insurance and
by betting on the horses—both
large items. Most of it, however,
still
to
seems
remain
in the pos¬
session
of people
who did not
spend it for retail goods, about
35% in the form of war
savings
bonds and about 65% in the form
of bank accounts or cash. At the
end
of 1939
over
70% of the "li¬
quid assets" exclusive
of
funds (currency, demand
trust
deposits,
time
deposits, and U. S. Govern¬
ment
the
armed
61,000,000.
The
enc
services
is to
absent
and
high.
when
Perhaps
incomes;
the
labor
than
force
the
during
monthly
size
the
of
the
reached
average
2,000,000
not
in
occurred.
000,000
if
The
be
may
about
2,000,000
about
about
up
no
probably not be available to
support this volume of gald? dur¬
ing the first third of the
IV.
The
The
1946
crucial
is
likely
of goods.
year.
Supply of Goods
problem
to be the
;
and
$44.0
one-half
times—from
billion
(exclusive
funds) to $113.9 billion.f
of
trust
v
Accumulated needs of business
during
*
supply
I have already referred
to the
disappointing increase in
production, particularly the fail¬
indicate.
In
industries
some
where production is measured
by
the consumption of raw
materials,
there may have been a
drawing
down
of
inventories.
In
indus^
not
of
business-
It
does
not
conversion costs and it does
the
expenditures
include
needed
to
adjust the size of the
business plant to
higher post-war
incomes
or
to
carry
out
new,
ideas and
raw
price
ceilings;
materials
(2) lack of
parts; and (3)
or
There
can
.
'
.
,
be
no
doubt
.
that
price ceilings have limited
the production of
many items of
goods.
A better balance in the
price ceilings between different
grades
and
different
kinds
of
goods is urgently needed.
In¬
adequate price ceilings may have
far-reaching effects.
facturers of
to
Two
manu¬
products using
produce
profitably
electric sheets which
are
the
used
as
laminations
in
the
rotors
and
stators of these motors.
The total
effect of
upon
inadequate price ceilings
production, however, is dif¬
ficult to appraise.
I suspect that
difficulties in OPA pricing affect
the kind of goods
produced
more
mented by the normal
process of
replacing old equipment with
profitable
at the usual rate
Under
now
the
conditions
exist there will
new
than for
.
in
which
be demand,
by and large, for all that industry
the
to
use
rayon
tires
industry
is
helped.
From the
standpoint of consumers,
the wrong kind of
quite
serious
goods may be
because consumers
may not be able to
fFederal Reserve Bulletin, June;
1945, p. 533.
for
linings, but employment
tire
get what they
most desire to
buy and the pur¬
chasing power of the consumers'
and
that
the ' principal
production is an
inadequate; supply of labor.
He
fair
to
""v<*
says:
being
been
;
:
level
Our wage levels are well
line, if not higher than the
average in the area, and ifls
in
impression
my
>
every
;r
:
v
yuu can see
a
10% above 1939.
rapidly
as
employed. r'
picked up
.Employment in
the women's garment industry in
October, 1945, was one-third be-:
since
low
for
reason
the
more
One of the most striking
aspects of conversion has been the
large number of vacant jobs re¬
ported by employers. The unfilled
vacancies with the U. S. Employ¬
ment Service have been running
by
These figures do
all
represent
means
is to be expected,
the jobs unfilled by the public
employment offices are, by and
large, the least desirable ones, but
they are by no means all lowpaying. One-fifth of the vacan¬
As
vacancies.
cies
males
for
chusetts
:han
dollar
a
listed
vacancies
considerable
skilled
Massa¬
men
hour.
an
"Herald";
3oston
finds
in
October ' paid
in
the
5
Jan.
on
more
In
advertised
variety' of highlytoolmakers, sales
—
good
report
wages
abor scarcities.
serious
There is, for ex¬
shortage of skilled men
in the highly unionized printing
industry. A large company in the
metal working industry which
starts
an
a
common
labor
at
70
cents
hour reports:
"We
What
hard
can
be
cific
have
Coast, while
a
on
surplus
the Pa¬
expected
the layoffs in the shipyards to
help us out, we have obtained
practically no additional help
which
we
need."
we
for
1
the
Many
and feel
much
years
Not
rest.
a
done
vacation,
a
before
In.
these
about
and
getting
the
people.
three
months
Day,
3.8 million
the labor
than
look
to
around
themselves
from
more
males
job.
a
after
,V-J
withdrew
force.. This is for
the
usual
seasonal
withdrawals,
and represents the
tendency of demobilized veterans
to remain outside the labor force
for
a
few
should,
months.
not
This practice
discouraged.
In
wage
increases are
be
cases
needed in order to enable certain
industries to attract labor.
These
situations almost invariably re¬
quire
price
relief.
the
Hence
handling of these spotty labor
shortages
requires
close
and
prompt
cooperation from OPA.
the next four
or
five
During
months
be
substantial increase may
a
expected
force, but
of
in
the
civilian
three families have
than
income
one
are now
labor
knows how large
In times past about one
no one
it will be.
second income
had
more
Wages
that many
earner.
high enough
so
earners
will
with¬
draw from the labor market. I
sus¬
pect, however, that the civilian la¬
bor force may increase 3 million to
million
the
we
■
about
Returning war veterans wish an
opportunity to visit relatives, get
4
Likewise,
several
need
although the picture is
country-wide. We
are
short in New Jersey and
Illinois, but in Eastern Pennsyl¬
vania and in certain parts of
South
for
the
labor,
labor.
done
compensation
resuming work. They are
particularly disposed to do this
because they have been working
not uniform
of
be
can
gar--
;
unemployment
come
the
men's
before
sonal
short
the
problem of labor supply?
of
definitely
are
in
and
industry 25% below.
some
a
metalworkers, piping draftsmen,
production managers, glass blow¬
ers, die forgers, experienced ma¬
chine designers, product designers,
cost
estimators, and automobile
mechanics. Many employers who
ample,
Day.
one
for
engineers (must be college gradu¬
ates),
design
draftsmen,
sheet
pay
1943
ment
to
the
as
V-J
people wish to exhaust their rights
Shortage of labor is> frequently
mentioned
It has lost about
500,000
were
Employment has not
the
as
•
100,000 workers since 1942 when
up."
eases
;
about
materials will have
.material situation
same
The cotton textile industry is
producing 18% less than in 1942,
8% less than a year ago, and only
that
have not
to increase or we shall not be
fable to sustain even this volume
of production., We are prepared
to go ahead and expand our
pro-
eduction just
nearly
consumers
difficulty; that is, that
no great number of peopie seeking employment at any
price."
;
as
raw
the
goods field here is experiencing
could
flow of
that
in
one
there is
high as we would like.
employ more people
if we had more material. Our
operations today are running at
about.35% to 40% of 1941. The
; We
•
wire
to manufacture at
able
!,
\
area.
follows:
as
reasons we
any
than the total quantity of
output
Employment and production in
;he men's
clothing industry may
oe
limited
because
it
is
more
technological improve¬
ments developed
during the war
except as these may be imple¬
strip steel,
for obvious
700,000.
OPA
millions
have it in view of orders
'impediment
pre¬
•
not
sible
needs
material
raw
around
production of parts.
Three principal reasons are
sug¬
gested for the slowness in the rise
in
production:
(1)
inadequate
to
hand
on
household
He writes
tries where
considerable
of
employment in
goods industries
men,
non-durable
like
were
finished
output is measured by
goods, there has been a
goods indus¬
release
is about 10% less than a year
ago.
A
union
manufacturer
in
the
cus¬
rapidly.
to
seem
preciation
This figure may be
regarded as a
low estimate of the
accumulated
of
failure of production to rise
figures
service
the
Despite large lay¬
durable
the
;r'-V;.\'-"I do not believe that paying
higher wages would assist us
immediately provide
in securing more labor in this
into inventories, Fur¬
been better than the
elec¬
tric motors find their
output lim¬
ited because, under
existing price
ceilings, steel mills find it impos¬
depletion charges.
,
ure of the
output of non-durable
goods to show an appreciable rise.
Probably the actual output has
are
very large also.
It may be
roughly estimated that business
outlays on plant and equipment
during the last four years were
roughly $10 billion less than de¬
and
and
;
r
OPA
two
cipal
i;
.
of
forehanded in placi ing post-war orders with our
sources of supply, but our prin-
Goods
will
de¬
the
and
the
"We
available, re¬
demand..
in
tries
are trying
problem of excessive
by
hardware.
change in
important catching
deferred
on
offs
Some suppliers
manufacturer
a
appreciable
prices and
employment.
will not be repeated.
Let me cite
the effect of this situation upon
is
$135 billion to $137 biL
no
Here,
ago.
anywhere, one would expect a
large and substantial increase in
jobs may go
thermore, some supplies may go
to meet types of demand which
sales would
sumes
year
if
method, but it creates temporary
some supplies
employment
income
pay¬
.
a
favorably
industry reports that production
in his plant is no more than 60% '/•
as
high as management would,
which might
and
approximate $85
billion to $86 billion as
compared
to $74 billion in 1945.
This as¬
did
more
bottlenecks because
had
figure of 60,high.
It is
If goods were
earnings
in
the
durable
industries today than
they
shortages reflect
rationing their
tomers on a percentage of
war
purchases.
This is a
individuals should be
not less than $150 billion and
in¬
come
after taxes should be not
tail
compare
with
or
,
non-durable goods indus¬
goods
This manufacturer is de¬
demand
to
less than
Consequently, earnings
the
tries
A manufacturer of
to meet the
too
58,000,000,
ments
are
high-paying full-fashioned hosiery
only.
the
almost certainly not too low.
If frictional
unemployment
in
substitute materials to
the place of some materials
available
from a
single source
labor
the "war
Hourly earnings
a
year ago, and there
has been only a small
drop during
the last year in the
weekly takehome pay.
and important
accumulated
above
take
more
1946
is enormous.
well
veloping
an
than the size
which the labor force would
have
reached
materials
raw
tremendous
strikes.
65,000,000.
It is, however, about
5,000,000 more than pre-war and
about
with
refrig¬
erators reports that 10 of his prin¬
cipal suppliers are tiCd up by
are
when
war
of
common
a
industries
mand.
monthly average of about
60,000,000.
This is
considerably
proportion had dropped to about
63%, but individual holdings of
over
the
annual
less
fact
output. :In some indus¬
the difficulty is strikes; in
other
force
after demobilization will have
this
on
tries
there
experience to indicate how
many people will be
willing to
work when the
patriotic urge is
lack of labor.
increased
limit
no
securities) were held by in¬
dividuals. By the end of 1944 the
liquid assets had
Shortage
parts is
of the
amount
reconcile
to
were not affected
by conversion
problems. Their backlog of orders
of labor and materials are
gradually overcome, it will be¬
come increasingly important that
the balance of price ceilings be
improved.
)\
Some addi
drop is uncertain, because
is
Of special interest is
the slow
increase of production in the non¬
durable goods
industries which
ages
nexi;
drop in the labor force
be expected.
have fallen short of their normal
is
the
lim¬
defects
price ceilings
seriously limiting the total
amount of production.
As short¬
approximately 6,000,-
in
men
about
was
during
the
are
sea¬
The labor force at the
year.
of 1945 with
lion.
for
general
this
aware
cover
3. The
level
non¬
this
the
1. The maintenance of high lev¬
of
running between
170 and 173, fell to 159 in August.
In November it was still only 161.
because
els of
output
the
accumulated
m
been
goods. This
branch of industry has virtually
no
engineering conversion prob¬
teristics of the
conversion period
they are important in
judging future trends:
making
all
the conclusion that
sonal
held up surprisingly well,
tion has; not recovered as
which had been
released.
cult
by
unemployment
government orders, the index of
output
of
non-durable
goods,
completed. About 6 mil¬
estimated
guess" concerning
the
size of the labor force
out to be far less than many peo¬
lems.
The de¬
mobilization of the armed forces is
pay¬
unemployment and strikes.
There will be
very little seasonal
durable manufactured
in
be
with
Even
in OPA pricing, however, indus
try is trying to hire more people
than it is able to get.
It is diffi¬
Conse¬
culties of conversion have turned
October.
rise
produce.
a
probable
Although the engineering diffi¬
slow
substantial
to
best
can
making
million in No¬
production apparently occurred in
The
able
quently, the size of income
ments
vember.
July to nearly
be
be substantially
may
ited.
Thursday, January 10, 1946
6
in
the
usual
This
partly
labor
million
ized
beyond
rise.
increase
from
the
force
of
service
1945
and
will
return
some
men
sea¬
of
to
the
demobil¬
partly
from
shifts into the civilian labor force
of
many
men
ized.
who
of the 4 million service
are
still to be demobil¬
This gain
in the labor.force
materially ease the problem
of labor shortages.
.1
The prospect that the civilian
labor force will increase by 3 milwill
»
1
Volume
Number 4454
163
lion/or 4 million
or
allowing for the
increase)
during
months
raises
(after
more
usual seasonal
the next few
the
question of
^be
plant
enough to employ the number of
people who will wish jobs after
the war.
In other words, may
there be unemployment because
whether
there
will
,
industry lacks plant and equip¬
ment?
Employment reached un¬
precedented levels during the war
because
12 million
over
the
in
armed
forces
men were
nearly
and
industries cannot.
where
civilian
been
made
In many
for
plants
ments to channel this demand and
not
control the size of
timing of their
placement.
In some industries
this country is prepared to export
large quantities of goods without
strong direct pressure on prices.
have
goods
three
four
or
production
costs are, not
Twenty-three industries
during the war
make substantially the same
years,
known.
which
to
continued
product
had
before
as
the
in output per man hour.
Some of
these industries have had
gain, others have had
tial
loss.
(a
have
war
widely divergent experience
The
little
large
substan¬
a
increase
average
than
more
a
in
5%
five
6 million in the Government ser¬
years) has been less than normal.
vice.
report a letdown
efficiency since V-J Day.
This
is
not
surprising and is
likely to be temporary, but no
one knows how long it will last.
The
highest
number
ever
at work in
private industries (in¬
cluding agriculture and self-em¬
ployed) was in 1942 when the
monthly average, of non-Govern¬
mental
workers
If
monthly
the
labor
is 60
of the
demobilization
million, if the armed services
and other Govern¬
mental- services
5 million, and if
is/ kept
unemployment
down
to
the frictional minimum of 2 mil¬
lion, private industry will need
to employ a monthly average of
about
51
million,-'or74 million
more than the wartime peak. This
peak was reached with the use of
considerable
second-shift,
and
third-shift
operation and by the
employment of large numbers of
men in shipyards, airplane plants,
and
powder plants where !, they
cannot be used in time of peace.
'
Allowance
the
be
must
made
for
the self-employed
dentists, lawyers and
other professional people) were
temporarily reduced by the war,
■
that
fact
(doctors,
that
number of business
the
Some industries
It is
will
be
reduc¬
no
the
rate
by
simply reduce
they creep up
minor adjustments
It
will
which
at
numerous
from
or
failure
Some
saving
in premium over¬
time will be achieved, but it will
be
small.
In
October
the
whole
of
and
one
time
industries
as
a
working an average
were
half hours of
a
week
a
and
over-:
durable
the
goods industries nearly two hours
overtime per week. This is likely
to
continue.
More
substantial
tail stores,
railroad shops, garages,
are
undermanned. In ad¬
tax
were
;
million
fewer
employees
than
might be expected before the end
V
Of
1946.;;7^7:7';7 ■;'•);M:!y
All
of
this
employment
will
be
of
possible,
that
51,000,000
but that
the
men
the
number of people on second and
third shifts will be about
as large
during the war—at least, until
the plant of industry can be con¬
siderably expanded.
Some men
as
and
many
women
may
prefer to
leave the labor force rather than
to work
a
second shift.
states it would be
women
Many
to
In many
illegal to work
second-shift
on
men may
shifts
hours.
prefer to go back
the farm rather than
night
in
the
to
work
cities,
thus
swelling the excessive number of
agricultural workers.
>
Equally pertinent is the ques¬
tion of whether industry can get
the raw materials needed for the
private employment of 51,000,000
people plus the materials needed
by 7,000,000 people in the governmen,
civil and armed services.
The
United
States
will
undoubt¬
edly have to
be prepared to in¬
its imports of many items
crease
such
as
metals, wool and, pos¬
sibly, lumber.
Full employment
this country makes desirable
a
prompt reconsideration of our
tariff policy.
There is real ques¬
tion whether the' United States
has enough low-cost steel capacity
properly to service "industry at
full employment.
in
V.
Can
a
Disorderly Rise in
Prices Be Avoided?
,
The
most)
problem
1946
facing
will
orderly
rise
in
crucial
be
spiral
the
the
to
economic
country
.prevent
a
in
dis¬
of
prices. ' Some
general price level
seems
inevitable.
point
of
danger
The
is
principal
that
wage
advances
will
force such large
price increases that speculative
buying will be generated or com¬
pensating wage increases will be
sought which, in turn, will force
compensating increases in prices.
"The discussion of the ability of
industry to absorb wage increases
without price advances has not
.been very realistic. Many indus¬
tries undoubtedly can grant wage
increases without price increases,
and
have
done
so.
the savings to
reductions.
industry from
in. all, in¬
All
dustry as a whole might absorb
a 10%
to 12% increase in wages
without
higher prices
an
or
en¬
croachment upon profits.
This is
over-all figure and there woiild
an
be wide variations in
indicates
Many other
(1) The general public
given
a
the*£ffecfc of
change upon 'dif¬
wage
ferent industries and upon differ¬
ent plants in the same industry.
General increases substantially in
of
excess
10%
12%
or
off
touch
would
price increases
plight be hard to stop.
;
which
the
on
Government
Federal
year.
Government, however, will
reducing rather than increas¬
ing its purchases of goods.
The
deficit will represent, in the main,
payments
on, purchases
made
some
time ago.
Such payments
are
less
inflationary
than
the
placing■■ of
new
orders.
The
budget deficit, therefore, will not
be
be
too serious
threat to stabil-
a
purchase of real estate may ag¬
gravate a situation which is be¬
coming
increasingly
dangerous.
Although the construction indus¬
try has had a counts-seasonal
,
rise
in.
employment during the
fall of 1945, construction is only
half the level of 1943.
The hous¬
ing shortages are severe and are
growing worse every day. V. Over
a
million
to
families
doubled
be
are
estimated
the
number
may increase to 2,500,000 by an¬
other year.
The demobilization
of the armed forces will, as usual,
bring about an abnormal increase
in marriages.
Despite the des¬
perate housing situation,* less than
one-third of private1 construction
up;
and
by
the
country.
siderable
reluctance
For
many
have
often refused to pay them. Con¬
siderable consumer resistance to
he
years
■
con-
ducted
his
ment business
ably be held down to amounts
City
which
!
private wire system
will
make
.unnecessary
large increases in prices.
(3) Before the middle of the
.
.
ihvest¬
own
in
New
York
with
.
through the
Mr. Lachenbruch's, re¬
country.
cent
Lachenbruch
Morton
a
,
association
was
with
Town-
•
managements will probably
year
be
:
able
to bring about signifi¬
gains in output per man-
cant
hour.
7; 7 .y 7';
I'-)';
send, Graff & Co., members of the
New1 York
Stock
Exchange, as
manager
of the trading depart¬
ment.
_.v: 7777
7:7" 7*7/.'"!
• ■:
'
■
7
beyond
y7June..777:7'7
30th
the
Conclusion
Let
few
conclude
me
by
about
words
Every
Represents
-
saying a
points.
Putnam Fund
these
on
Coast
acknowledges, I be¬ the
general
the public's contribu¬
George Putnam Fund of Boston,
price control during the !has announced the election of
war turned out to be far greater
John G. Gallaher as Vice-Presi¬
than anyone dared hope.
Few
dent/and his appointment as the
people in 1939 would have dared firm's Pacific Coast
representative
predict that prices could have with offices in Los
Angeles.
been kept under control with the
For the last several years Mr.
public's holding such huge quan¬ Gallaher was the
regional man¬
tities
of liquid- assets as it has
ager in
Chicago for the U. S.
acquired. 7 American
consumers
Treasury, Wat Finance Commit¬
are
likely to continue to make tee. Prior to that he had been in
that
lieve,
tion
to
their
contribution
trol.
Perhaps " Wage negotiations
in
the
to
con¬
months
several
next
price
will
more attention to questions
of efficiency. Thus far employers,
pay
by and large, have failed to bar¬
gain for the removal of obstacles
efficiency and have failed to
the 7 investment •
the
interest
the
more,
settled
these
issues in
issues
rate,
any
many
plants.
lead
sooner
get
them
leaves
war
of Bond
to
or
settled.
Some of
<
strikes.
At
later most of
After
few
a
months of letdown, after unsettled
& Goodwin,
was
and little more
as
was
than half
as
much
the increase in the number of
families.
stances,
Under
these
making
available
for
more
circum¬
credit
the
purchase of
housing obviously does not reach
the
real
difficulty.
Effective
steps are needed to increase
production of houses.
The
our
large
goods
United
to
enter
foreign demand for
indicates
that
the
States
into
the
must
be
prepared
gentlemen's agree¬
Theatres, has become associ¬
with
the
Fidelity Union
Company of Newark as
manager of the municipal bond
department. 7
;.V
,
!'■;.' ' .7/.']
ated
,
Mr.
7
Inc.
•'
"if!
.
)■'
,
•
,
Robinson
was president Of
Colyer, Robinson & Co., Inc., of
his entry into the
Newark prior to
armed forces.
Inc., of Illi¬
.
!
Four Partners
Thompson & Co.
7
Rejoin
W. E. HuHon & Co.
Offers Mills Stock
.
Hill, Thompson & Co., Inc., on
a public offering of
13,000 additional shares of com¬
mon stock
(par 50 cents) of Sus¬
quehanna Mills, Inc., at $22 per
share..
7,y) •7/7:;77: 77 7. y '7 ,7.77;/
Jan. 4 made
..
Proceeds are to / help finance
acquisition of a spinning mill in
j
Forsyth, Ga.; buy additional
equipment and increase working
funds)
7 7 ' ' 7-7"7' 7;777 ^ 7').,7;
W. E. Hutton & Co., 14 Wall
Street, New York City, members
New York Stock Exchange, an¬
the
nounce
them
with
reassociation
of four partners after their*/
release from active duty
armed forces. They are:
with the
John J.
Anglim, Corporal, A.U.S.; W. E.
Hutton, Lt. Commander, U.S.N.R.;
Robert
C.
L.
Timpson, Major,
A.U.S.; and Benjamin D. Wil¬
liams, Lt. Colonel, A.U.S.
,
issues have been cleaned up, after
their
some
strikes
systems, and after
ments have had
out
of
manage¬
opportunity to
get the "bugs" out* of the produc¬
of new civilian goods, effi¬
ciency begins to pick up.
This
an
tion
pick-up in efficiency ought to be¬
come fairly
evident before sum¬
mer.
A
hour
Lewis Ankeny Opens Firm
7 KLAMATH
OREG7—
Lewis Ankeny has opened offices
in the Medical Dental Building to
FALLS,
engage in the securities business.
In the past Mr. Ankeny was with
Rogers ;& Company in
7
7. 7777);;;,;,. :;.;7.7; .7 v..
Hartley
Seattle.
is
rise
in
output per manbadly needed.
One fre¬
quently sees statements that the
safeguard against inflation is pro¬
duction.
This is only true up to
certain
a
point.
Production
creates enough income flow in the
form of wages and profits to pur¬
chase what is produced.
Conse¬
quently, unless there is technolog¬
progress, there is no oppor¬
ical
disorderly rise in prices will be
transferred to business. The pub¬
a
lic expects
prices to be held down
after the abolition of the
OPA, will hold business respon¬
sible for seeing that prices are
held down.
I do not believe that
and,
public has very rigid ideas
subject.
Slow price in¬
creases
which do not touch off
a
down
prices in the face
huge accumulated demand.
of
Most people are eager to see the
time when the OPA can be abol¬
ished.
February.
unrealistic.
on
business
men
have
proposed that it be abolished
even
in
Some
prices
ever.
This
is
obviously
The upward pressures
are
now
It would
greater
be unwise
than
to
set
an
arbitrary date for terminating
That should depend upon
economic conditions. On the day
when the OPA is terminated, the
OPA.
full
responsibility for preventing
7
S. A. McFalls Forms
Carolina Sec. Corp.
HIGH
POINT, N. C.—Carolina
Corporation has been
Securities
formed with offices in the Secur¬
ity Bank Building to engage in a
investment
business.
general
Officers are S. A, McFalls, presi¬
dent, and Nathan M. Ayers, sec¬
retary and treasurer. Mr, McFalls
was formerly a partner in McDaniel Lewis & Co. and
was an
officer
of R. S. Dickson & Co., Inc,
:
Katzenstein & Zink
the
this
on
a
1945
East
Trust
executive
hold
quarter of
dwelling units started
less than half the pre-war rate
A.
/
NEWARK, N. J.—-Arthur Rob¬
inson, who has been in the U. S7
Army Air Force for the past three
and one half years, serving in the
European, African
and Middle
nois and general sales manager in
the Middle West for Blair & Co.,
of
un¬
is
)
;
for 7 a
business
number of years as an
which
wage earners
Forum
the
Arthur Robinson With
to
arrangements
of
Distributors, Inc.,
distributor for The
ber of
new
from Russia.
Putnam Fund
one
residential building and the num¬
third
Litvinov,"' etc.; and Ella
Winter, author recently returned'
Wilfred May.
speculative buying would not be
resented.
Indeed, there is much
to be said in favor of them.
But
the
Maxim
Chairman
of
tunity to reduce prices without
encroaching upon either wages or
profits. Technological progresses
needed in order to help industry
in
Following the addresses a dis¬
cussion will be led by Max East¬
man,
author and poet; Joseph
Freeman, founder and former edi¬
tor of the "New Masses"; Eugene
Lyons,
former editor of
"The
American Mercury" and author of
"Assignment in Utopia" and "The
Red
Decade";
Arthur
Uphanx
Pope, director of the Iranian In¬
stitute and author of "The Life of
(4) The OPA will probably be
retained
delegation, will give a critical:
77
rapid increases in prices can be
expected.
(2) Wage increases will prob¬
:
people ; get
The expansion'of credit in the
cir¬
dealers
in raising output per
man-hour. Perhaps the explana¬
tion is the inexperience of most
employers with collective bargain¬
ing. Some letdown in efficiency
after the hard production drive of
the war is quite naturah Further¬
the
the Soviet Union as Chairman of :
throughout
and
Carey, Secretary-Treasurer of
CIO, recently returned from
trading
prices. On the
have usu¬
ally paid high prices with con¬
would 7 increase
of
the
(
analysis from the viewpoint of a
labor leader; Ray Brock, foreign
correspondent and
author,; will
speak on the anti-Soviet view¬
point.
high
I The danger pi a disorderly rise
during the first half of the
F.
of the Department of
its
consumers
at
goods
in
The
man
known
cles
propose
prices will be accentuated by
the continued deficit in the budget
Chair¬
Slavic
Languages at Cornell University,
on The Soviet Viewpoint; James
be Dr. Ernest J. Simmons,
in Wall Street
contrary,
non¬
durable); goods
forum, on Russia's Foreign Policy
Friday, Jan. 25. Speakers will
on
specialist in
unlisted se¬
curities, is
well
Memberships of!
the New School will hold a dinner
a
whole has refused to reach for
adjustments) in
piece V rates ; as
working conditions improve.
;"V7*"7
reasons:
minor
make
to
en¬
hotels
bright today than sev¬
eral months ago.
My belief that
price movements can be kept or¬
derly rests upon four principal
"frugal"
earnings.
less
Associate
The
F.
Blair
with
associated
come
Russia's Policy
on
be¬
has
Lachenbruch,
that
tion in labor costs from the more
administration of wage
systems.
Wage systems may well
be more "frugally" administered,
but this will not reduce hourly
Claybaugh
Lachenbruch
Morton
the chances df preventing it
am
seem
administration of
and by the 1 elimi¬
of premium overtime pay¬
There
New School to Hear
Claybaugh &
Co., 72 Wall
Street,
New
York City. Mr,
systems
ments.
With Blair
quite hopeful that a dis¬
rise in prices
can
be
avoided, though one must confess
I
"frugal"
wage
nation
Morton Lachenbruch
the
orderly
that industry will be
said
to
and
orders
able to reduce labor costs by the
more
terprises/was reduced by about
half a million and that many re¬
dition, the construction industry,
though over twice as large as at
present, had in 1942 perhaps a
possibly
in labor
46.9 million.
average
after
force
2 million,
are
was
163
THE "COMMERCIAL & FINANCIAL CHRONICLE
Are With Hirsch & Co.
Hirsch &
New York
New
York
nounce
Co., 25 Broad Street,
City, members of the
Stock Exchange, an¬
that
Seymour Katzert-
in a
stein has rejoined thteir statistical
subsequent collapse would arouse
deep indignation.
Business can¬
department after service with the
not afford to risk the
H.
speculative
ity for such
a
rise resulting
responsibil¬
rise.* Consequently,
business
should
OPA be
abolished
not
kept
too
pub¬
price movements will be
orderly.
It
better to keep the
long
than
to
months too early.
forces
Zink
has
and
that Montague
become
associated
with that department.
ask that the
until business
feels quite able to assure the
lic that
armed
would
be
far
OPA six months
abolish
it six
B. Adams Returns to Desk
Braman B. Adams
2nd,
a
Lieu¬
tenant in the United States Naval
Reserve, has been released from
duty and has resumed his
active
duties
as
a
partner of Adams &
Peck, 63 Wall Street, New York
City.
1
*■
:
1
THE COMMERCIAL
164
Calendar
ECONOMIC
PALESTINE
28
of
days
on
which
in
normal
SCO.
'
lic
is $100
statement
filed
Details—See
by
COLUMBIA
to'be .filed by amendment.
PICTURES
(no
common
detachable
The
reserved
grpup-C,
of
dend
by
for
rate
the
on
and
preferred
on
headed by
'
filed
26
a
be. sold
by
the
company
by
of
issue
NEWPORT
28 filed
share. '
per
Underwriters—W.
price
offering
R.
,
Manning
Toronto, Ontario, Canada.
&
by
V*.^
issue .of Jan. 3,
,
;
'
27 filed
has
registered
cumulative
stock,
and
household
share;'
to
ment
of
Jan.
3.
by
amendment.
•
of
underwriting
are
filed, a
shares
registration
of
$100.'
dividend
will
Offering—The
be
of
price
Jan.
3.
filed by amendment,
Underwriters—F. Eberstadt
the
underwriting
refund
COLONIAL
AIRLINES,
7
Details—See
L
Offering—The
-holders
'be
of
fixed
in
of
stock
*
;'7
Atlanta,
•
Jan.
the
to
mated
3.
is
granting
of
right
its
'
to
advisable
the
by stockholders will be
individual
members
the
:
same
Cor
|
their
'
the
(filed
CO.
on
of
common
stock,
Dec.
28
City.
statement
i
for
28
&
filed
479,726
stock "(no parh
The shares
are
Details—See
issue
Underwriters—The
todian
;of
of
Jan.
Alien
con¬
program
is esti¬
"
for
CO
filed
N.
Y.
issued and
is
$1,500,000
sinking
1961.
The
'
.
to
sell
Cus-
all
its
company's
products.
.
will
amount
from the
be
loans of $800,000
that all or part of
added
of
notes
$33,500
net
to
will
in
proceeds;
the
general
the
also
It
the
prin¬
be
paid
balance
Any
funds of
the
company.
the
stock
qualified
; cepted
to
will
distribute
be
offered
the
amended
additional
shares
the
to. include
information.
constitute
The
90.79 &
of
prospectus j
the requisite
shares
the
shares outstanding.
to
be
5*>8 390
'
statement
preferred
%
shares
holders
trust
of
extension
of interest to
5%
(1-4-46).
P.
A.
of
for
shares
common
17,000
(par
($3
6%
$20)
par).,.
a
registra¬
cumulative
and
W.
istered
of
ex¬
and
United
34,000
In addition,
States
annum.
lateral
trust
and
20-year
stock.
5%
shares
80,000
sinking
($5
'
underwriters
par)
col¬
fund
capital
MINES,
LTD.,
stock,
$1 Canadian
of
Bridge
assenting
the
April
to
the
and
S.
if
public
per
1966,
1,
$900
to
of
such
offers
U.
$195,000
offer
at
50
filed
14
share.
If
the
U.
resale
at
S.
sold
by
dealers,
event that all
The proceeds will
certain
issuance
and
of
for
cents
minimum,
currency
unpaid
if
a
$25,000
exploration
least
at
and
the
of
if
—
the
to
of
value
share,
per
Industries
Lee
underwriting
15,000
which/ ais
$10
1945,
Alstyne,
17,
Sept.
the
common
$150,000.
on
Noel
was
&
Co,
group.
filed
12
Dec.
for
par).
■
.
Awarded
Issue
.
Jan.
Lehman
to
8
Blodget,
Brothers and Stone & Webster and
bid
on
^
of
for
101.42
3.60%
a
dividend
77'
7
.•
^
■'
V
,
LTD., on Nov. 13 filed a registration
ment for 1,000,000 shares of common
par $1.'
•'r \
Details—See issue of Nov.
Offering—The
„7
MINES,
GOLD
YELLOWKNIFE
CABOT
CORP.
registration statement;
of
preferred " stock
a
shares
350,000
ra>i00
ELECTRIC
NIAGARA
BUFFALO
on
state¬
stock,
1
-
22.
is 30
to the public
price
per share.
Underwriters—John
jents
named
William
Langs
13
principal underwriter.
CARRIER CORP.
Dec. 14 filed a reg¬
on
shares
120,000
for
statement
stock
cumulative preferred
series.
,'-f •"
(par
\7' 7
•
V'
of
4%
$50),
,••7'
20.
Details—See issue of Dec.
-6.
71,
7
offered, pro
rata, at par at rate of 22 shares of new
preferred stock for each 100 shares of
common stock held of record Jan. 7. Rights
Offering—Shares
being
are
expire Jan. 22.
Underwriters—Harriman
and
Inc.
Hemphill,
underwriting
Ripley & Co.,
head the
Noyes & Co.
group.
BISCUIT
CONSOLIDATED
12 filed
CO.
Dec.
on
registration statement for 80,750
stock, par $1.
a
of
shares
common
Details—See
of
issue
20.
Dec.
Offering—The new stock will be offered
to
stockholders
common
time
In
January
ratio
of
held.
•
offer its shares, and upon
being consummated,
amendment will be made
arrangement
statement.
at
record
of
share
$10
per
for
share
one
each
four
some
in
the
shares
'
Underwriters—None mentioned.
RAILWAY
DALLAS
filed
13
Dec.
on
for
162,500
(par
&
Co7
TERMINAL
registration .statement
a
stock
$20).
shares
Details—See
Registration Statement No, 2-6083. Form
8-3.
heads
named.
to make> arrangement?
ciealers in Canada and the
an
stockholders
Bolt
Underwriters—Van
formal
development
underwriters
No
registration
the
worth
Industries
Lee
common.
its
market
dissolved
Government
only
after
proposes
States
Bolt
to
Buffalo
of
then
were
*;■
necessary,
to
and
exploration
security
an
and
war,
'
Underwriters
with
the
of
currency from the proceeds
aside
and
definitely
ear¬
set
for
after
Dominion
the
of
S.
U,
been
Buffalo
of
distributed
shares
shares
and
months
six
the
by
the -end
has
to Lee - Industries, Inc., on Aug,10, 1945, Buffalo Bolt acquired the assets
subject to liabilities of Eclipse Lawn Mower
Co. from Lee Industries for 15,000 shares
company
as¬
development
work.
A part of the proceeds will be ap¬
plied to discharge liabilities of the pre¬
decessor company assumed in the amount
of
$31,492
(fknadian currency, but not
stock,
be
may
all
and
expenses
distribution
and.
the shares
be applied
any
sold.
50
maximum,
currency
are
in
to
for
share.
The estimated
raised by the company is
S.
.
there
addition
In
cents
Offering
owned
—
of
common
issue of Dec.
The
20.
shares
Electric
by
are
Power
&
presently
Light, Co..
proceeds from the
sale will be received by Electric Power &
Light.
Upon consummation of the sale
Dallas will cease to be a subsidiary or an
parent
Dallas,
of
of
affiliate
and
Electric.
Underwriters—To
(1-4-46).
to
also
stock
entitling
to
common
and
the
the
be
sold
to
rate
in
date
of
deposit.
may
be
each
of $5
$1,000
to
up
shares
to
of
ex¬
the
detachable
The
unknown
are
to
ex¬
war¬
April
$5
1,
par
first
deposited
date
under
on
the
entered
share,
us.
at
competitive
Is
to
the
at
be
made
Ltd.,
Ventures,
Luz
TRAD¬
ING CORP. on Oct. 3 filed a registration
statement for 400,000 shares of 4% cumul¬
PALESTINE
AMPAL-AMERICAN
ative
.Details^—See
issue
Offering—The
per share.
of Oct.
price
to
11.
the
public
;
It
$5.50
Underwriters—The
through
the
efforts
shares
of
the
will
be
directors
sold
and
shares
4.
Finance,
Ltd.,
commitment
at
an
to
$1.23
per
1,920,000
Frobisher, Ltd., and La
(Canadian companies) at
and to Eureka stock¬
is expressed in terms of
money.
offered
be
Should
Ltd.
Price
Canadian
Oct.
firm
2,595,000
share,
per
holders.
will
preferred non-voting shares.
Mines,
$1.95
of
Mines
a
for
.....
option on
same
price.
The offering
among the shareholders of
has
and
shares
into
480,000
purchase
reduction,
each $1,000 bond at the .price
$7.50 per share, depending upon
bonds
or
issue
Offering—Toronto
has
considera¬
debt
per
or
mined
statement,
$1.
common,, par
Details—See
below a list of Issues
statements were filed
twenty days or more ago, but whose
offering
dates have not been deter¬
present
whose registration
$1,000
20 shares
holders
20
date
each
assenting
receive
purchase
of
of
receive
per
Those
will
providing
of
shares
UNDETERMINED
We
registration
a
DATES OF OFFERING
the reduction
annum,
amount
and
bond.
the
Dec.
on
Offering—The underwriters are offering
shares at a price to be filed by
amendment.
per
be
shares
the
to
maturity
reduction
per
extension
common
tension
which
the
payment therefor,
tended
of $6.25
of
the
principal
without
rants
BOLT CO.
BUFFALO
istration
at 32.5 cents U. S.
any,
share
per
to
the
the
currency
currency
proceeds
towel paper.
extension
extension
the
par
under¬
Albany,
Stret,
company
of interest to 5%
tion
the
bidding.
holders of its $2,000,000 first mortgage and
collateral trust 20-year 6 %
sinking fund
bonds due April 1, 1948, the privilege of
bond
head
EUREKA CORP., LTD., on Sept. 28 filed
Offering—The
of
Brothers
Lehman
registration statement for 58,386 shares of
stock, par $1.
;7
Details—See issue of Dec. 20.
Y.
Business—Tissue
for
7
common
On¬
1
.
and
Otis
are
Company. 675,& Co., 450,000
Allen
and
to
such dealers,
to
U.
Company
INC., has reg¬
and
filed by
-
writing group.
rate,
accepts offers from dealers
to
the stock, the company will sell
currency
work.
fund
maturity
mortgage
be
■
.
Offering—The price to the public will be
by amendment.
7
'
Underwriters—Goldman,
Sachs & Co.,
value each.
stoek
common
marked
per
will
rate
of Dec. 26.
issue
20
for 40,000
stock (no
preferred
dividend
Dec.
on
statement
filed
Inc.
'
Address—112 Yonge Street, Toronto,
Canada.
;
Un^ed
first
7
Business—Prospecting, exploring and de¬
veloping its mining properties.
Offering—The company is offering its
sinking
-
$2,000,000
to
Canada
tario.
the
PRODUCTS CO..
in
countries."
common
par
of
offer
of
subsidiary
distribution
PORCUPINE
of
declaration
mortgage
The
Details—See
registration statement for 600,-
a
currency
-
1966, and the reduction in
1,
Canadian
a
each,
shares
preliminary
an
first
20-year, 6%
the
for
rate
1955,
KELLING NUT CO. has filed
tion
000
The deposit
a
Registration Statement No. 2-6080. Form
N.
bank
outstanding
cipal
'
3.
Property
collateral
as
with
connection
to
bonds
desired
Aadress—Foot
479.726 shares I
Underwriters—Coffin & Burr heads the
at
public sale to the highest t underwriting group.
bidder., If any such bid is ac- I
Registration Statement No. 2-6077. Form
and if the successful bidder plans S-l. (1-2-46).
proposes
in
is
body styles, tenta¬
$10,000,000; and
the
at
First California
CITY
has filed
Until
securities
tension
;
.
to
pay
and
discharge the
on
its property in the
aggre¬
principal amount of $49,587 and will
contemplated
statement. I off
Y.
step
reg¬
proceeds
off
PRODUCTS CO., INC., has filed
Extension Offer—See below.
of
D-1A.
,
GOLD
are
registration statement for certificates of
deposit of $2,000,000 first mortgage and
collateral trust 20-year 6%
sinking fund
bonds, due April 1, 1948.
Address—Foot of Bridge Street, Albany,
N.
the
Registration Statement No. 2-6082. Form
(1-4-46). .7
„v
7/' - 7.
first
A. P. W.
Form
a
and
$300,000
Co.
a
the
mortgages
pay
&
date to April
by amendment.
Proceeds—The company will use part of
capital
stockholders.
group is headed by
Rhoades & Co. and Smith,
Loeb,
parts of
S-l.
such
statement
gate
of
16
the
foreign
shares
purchase
The
adjustment.
WEDNESDAY, JAN. 23
pro¬
building addition to
and other improvements,
000
imme¬
outstanding
such
sold by
par).
INC.,
CO.,
cumulative
amendment.
purchased from
development and
as¬
Underwriters—The
& Co.
suming
Offering—The price to the public will be
outstanding and are being sold by the
Property Custodian who directed the
'
its
The
new
Business—Sanitation
Alien
j company to file the registration
a
DISINFECTING
CHEMICAL
shares
itself
provide
meet
program.
cost
registration
a
of
M.
Barney
filed
the
POTASH
Dec.
to
it
debentures. ' due Jan. 1,
interest rate will, be filed by amendment.
Address—42-16 West Street, Long Island
■
on
ex¬
corporate
considered
fund
group.
AMERICAN
which
with
expansion
to
WEST
,i
CORP.
for
to
building,
building and addition
istration
I
^underwriting
deducting
time
shares
to
being
other
company
Underwriters—The
shares
Registration Statement No. 2-6076.
(1-2-46).
' ;
■
' 1 \ ' ■! ' ,• ,
Details—See issue of Jan. 3;
Offering—The price to the public will be
filed by amendment.
V . Underwriters—Reynolds & Co. heads the
;
10
S-2.
$1.
par
after
the
of
for
.
being
their
and
1946,
of 50%
equity
SHOE
registration
a
of
Iri'the assembly of automobiles ' in
Canada
740,000
Jan. 31,
on
represent an
prior
are
the
on
■
registration statement for 101,769
a
shares
HARVESTER
that
shares
the
the
$2,500,000.
Underwriters—None.
WEDNESDAY, JAN. 16
DETROIT
this
erection
The
accounts.
own
each
available
outstanding
therefore
of
part
a
under
offered
common
are
1946. The
Registration Statement No. 2-6079. Form
(1-3-46).
' '
■
stockholders
for
be
each
S-l.
offer
from saie of stock,
mated
at
share,
per
Streets,
of
shares
to
for
share
BROWN
filed
shares
manu¬
additional
establishment of
-
the
shares.
Jan. 25,
on
and
of
include
component
initially
estimated
engage-
underwear.
of record
prospectus
shares
Carl
Alabama
corporation
present
pur¬
of
Underwriters—-No underwriting.
j7
;
offering price of $20
the
not
Airlines
153,400
the
suppliers
hosiery,, fabric
lingerie and ehil-
additional
one
Pacific
expenses
funds will be avail¬
to
Run
of "certain
car
tively
are
stockholders, without payment by them,
an
additional 370,000 shares,
on
the
of
Willow
at
sembly
sold
capitalization will be adjusted by the issue
to
proposed
charges prior to production, $6,500,000.
the installation of additional assembly lines
at Willow Run;
the expansion of opera¬
stockholders.
basis
machinery, equip¬
the
pending specific application thereof
according
to
present
estimate,
for
working capital, and for general corporate
purposes which may include the following:
of
The company now
has outstanding 370,000 shares of common
stock.
On Jan.
31, 1946, the company's
of
for
and
reg¬
Offering—The price to the public will be
by amendment.
Proceeds—The proceeds
will go .to the
selling
tools
Run,
able,
v
distribution
$2,500,000;
Run,
Willow
at
assembly' plant, $4,000,000;
and
and
of
b.
it
jigs and fixtures at
The remainder of such
grade
and
infants;
den's and
common
■
higher
dies,
and
and
of
filed
of
with other funds,
borrowings, it is expected will be used in
or
The subscription price;
jboard of directors of Colonial
funds
ceeds
be
at
with
The capital stock
and
share
The
sub¬
to
'
of
-v"
•
.
.
$770,104,
will
purposes.
templated
to
>
registration
a
shares
common
one
at
penses,
to
date
a
Willow
equipment
Coast
Yprk,
New
Avenue,
surplus
funds,
ment
.'7-.' „"•/.
underwear
share held
the price of $70 per share.
Proceeds—The entire net proceeds esti¬
I
for not in excess of 91,400 shares
authorized but unissued capital stock in
ratio of one additional share for each
by
;
filed
11,070
pari.,
of
27s basis
owned at
the
chased
•
Fifth
and
such
;
eventually offered under the prospectus all
or
a
part of ac additional 15,000 shares
of common,
issued and delivered by the
nyO
-
Of
1
tools,
facture
shares
The
Business—Manufacture
of) women's
Ga.
i of
i subscribed
re¬
$5).
(par
capital
being offered at par
are
and
Kaiser
outstanding and are being
stockholders. •,...
Y..■
gloves,
to
and
program,
Business—Department store.
Offering—The company will
heads
Dec.
for
has
Address—Broad
will
\
on
INC.,
(no
scribe
jthree shares held.
jis $20 per share.
used
7>:;7
.
N,
diately
7
& Co.,
stock
January,
be
MONDAY, JAN. 21
Statement
public
INC.,
company
capital
expansion
as
RICH'S,
by
stock, par $10.
issue
its
will
stock
and
certain
subscription.
Underwriters—None named.
$5,000,000;
:
153,400, shares
for
which
public
machinery
7
CO. has filed a
KAYSER &
statement
paid-in
the
would
authorized
an
43,386
aro
v
$45,000,000.
financing
20.
Dec.
has
property, 2,000 shares, in escrow;, issued
for cash 280 shares and in treasury 5,720
7 7
quotations
presently
76,000
v
Address—500
any
"
proceeds
issued
and
group.
of capital
move¬
of
;
Registration Statement No. 2-6075. Form
(12-29-45).
■
■.■/.'■.■Y-V.
registration statement for 91,400
a
shares
cooperative
-
possible.
Underwriters—None..
stock
jfiled
the
and
and retire out of the balance
liabilities
.
the
to
filed
be
(1-2-46).
istration
per
by
interposition
,
post-war
for 40,000
stock, par
preferred
bate
'
issue
sold
stockholders
Dec. 27
on
amendment,
Details—See
$25
S-l.
statement
cumulative
The
being
-to*
the
in
the
public
maining, if any, as much of the presently
outstanding
funded
debt
and
current
group.
VICTOR CHEMICAL WORKS
t
without
its
to
•
;
,
of
issue
estimated
that
approximately
$18,000,000
will be expended as follows;
shares
8,500
and
in
about
TUESDAY, JAN. 22
in
working capital, to provide funds
for the purchase of additional plant and
equipment as needed in the carrying out
Underwriters—Glore, Forgan & Co, heads
the
*
Proceeds—The
>V
-
preferred
common.
by
increase
Offering—The
offering
prices
of
the
preferred and common "stocks will be filed
of
common
Hew
groceries
products.
the
directly
underwriter.
being sold by certain stockholders.
result
a
each underwriting 4,250
Company,
previous
corporation's
Kebbon, McCormick & Co.; Bacon, Whipple
Co.; Farwell, Chapman & Co., and Mil¬
waukee
7
:
current
on
proximately. $20,000,000 resulting from
and
underwriters
The
—
$1,620,000.
,
&
JULIUS
;
dealer
allied
and
Securities
cooperative
$50 par, and 150,000 shares of common, no
The common stock is outstanding and
issue
Underwriters
of, i%
preferred
^Street,
M
Y.
■Offering—Price
Dec.
in
$5).
re¬
shares
amount
certain
of
GOLD
Dec. 10 filed a registra¬
5,720 shares common
in¬
Kelling
preferred
issue
and
for
shares
group
same
stock, net proceeds to the company
would be approximately $25,000,000.
This
sum,
together with net proceeds of ap¬
re¬
As
from .the
$279,600
their
a
the
The
the
commission
a
the
by
for
for the
tions
i :
par).'
West
143M
Business—Wholesale
is
of
with
share
per
offering
shares.
outstanding
7 Proceeds—Based
Registration Statement No. 2-6078. Form
shares
non-voting
($25
A
Address—44
4%%
Details—See
Corpora¬
receive
to
debt.
the market quota¬
purchased the September public of¬
or a total underwriting commission
fering,
at
WHOLESALE,
20,000
dividend
series
York,' N.
par.
is
Securities
applied
(par
Weeks
&
Inc.
capital of $40,000, divided Into 8,000 shares
(par $5).
There have been
Issued for
offering *)rice has
is anticipated
the
of
time
and
20.
YELLOWKNIFE
on
statement
stock
but it
underwritten
be
cents
which
the
THURSDAY, JAN. 17
INC.
registration statement for 40,000
cumulative preferred
stock,
a
will
will
SO
shares, of which 14,000 shares will
cost to certain key employes.
sold
shares
EASTERN * COOPERATIVE
friends interested
shares
public
be
bank
term
transactions,
of
invest
common
s-i
.
Co.,
On
CORP.
the
to
will
be
tion heads the underwriting group.
,^1, " V
PRODUCTS
.
,,
price
will
terests
filed
be
■
■
Underwriters—Union
TUESDAY, JAN. 15
f
SHELLMAR
par
be filed by amendment.
7.77.
•
Dec.
on
stock,
will
rate
the
of
demption
INC.,
short
the
at
presently
the
second" preferred,
of accrued
the
retirement of
will
balance
of
determined,
en¬
distribution
that it will be related to
exclusive
to
$74,105
The
result
share,
per
been
to
Dec.
Corp.,
BERYLACA
tion
replacement parts.
Offering—The. public
not
all',outstand¬
the retirement of
non-cumulative
duction
1
preferred
dividend
7%
$100
Republic
MINES, LTD.,
registered
proposes
automobiles and
sale of
public
to
has
"
,
of
Underwriters—Hornblower
Central
will
Run, Mich.
production,
the
in
gage
being exchanged) at $100
exclusive of accrued dividends;
share,
notes.
Co.
&
shares
common
CORP.
Business—Coiporation
shares
dividends;
Peabody
Address—Willow
34,000
the
*'
issue
amendment.
•
■
1,800,000 shares of' common stock (par $1).
cumu
and
stock
of
'
Details—See
Details—See
KAISER-FRAZER
aggregate
price to be
to
offered
sale
underwriting. '■
AMER¬
Offering—Price to public will be filed by
cash balances.
company's
OF
CO.
12 filed a registration state¬
129,966 shares of common stock,
for
$5.
par
CANTEEN
Dec.
on
Offering—Company
as
sale by
the
preferred
be
ICA
ment
(1-4-46).
tion
17,000
76,000
488
cept
ing
3.
INDUSTRIES,
cumulative
Details—See
registration
statement "for
1,250,000
shares of $1 par value stock, non-assessable.
Details—See issue of Jan. 3.
cents
The
3.
a
35
of
$100.
MINES, LTD., on Dec. 26 filed
public
the
at
registration statement for 40,000
a
shares
Offering—The
Offering—The
Jan.
of
issue
amendment.
Jan.
registered
28
heads the underwriting group.
Offering—The price to the public will
be
filed by amendment.
The statement
says
shares purchased
upon
the
initial
offering will carry the right to receive
the dividend of 25 cents per share which
has been declared payable on?Feb. 15, 1946,
to
stockholders
of record
Jan.
15, 1946.
Underwriters—To be filed by amendment.
CHESGO
Dec.
on
Underwriters—Kidder,
stockholder.
present
a
INC.,
a
at
AUTOMATIC
1,
Registration Statement No. 2-6081. Form
Kelling interests will be applied as follows:
$86,900 to the retirement of all outstand¬
ing 6 V2 % cumulative preferred shares (ex¬
per
Offering—The price to the public will be
by amendment.
outstanding and are being sold
Details—See
-V'--"',
Details—See
SINCLAIR OIL CORP. on Dec. 26 filed a
registration statement for 100,000 shares of
comnfoh stock ■ (no par).
The shares are
and
is
group
filed
Underwriters—To be filed by amendment.
Issued
and
56,161 shares of common stock "(no par).
'
bidding.
t;
:
the public will
The bonds will
at competitive
be
of
shares to
common
underwriting
an
shares
Proceeds—Proceeds from
3.
to
from
received
added
S-l.
filed by amendment.
filed
be
purchase
and
company
company,
Underwriters—No
compensation to
company will grant
the
to
the
Proceeds
total of 76,000 com¬
price to be filed
by
underwriting agreement
common
company
of Jan.
issue
Co.
UARCO,
-Offering—The price to
filed
by amendment.
.
«'■'
will
divi¬
options
10,000
$200,000 to
1976:"'
7, Details—See issue of Jan. 3.
The
Hemphill, Noyes & Co. and Hall-
&
garten
underwriters
of
Offering—The price to the public of the
shares will be filed by amend¬
ment.
/
registration statement for
$4,500,000 first mortgage bonds, due Jan. 1,
Dec.
the
them
cer¬
amendment.
Underwriters—The
CO.
ELECTRIC
&
the
the
1946,
April 1, 1948,
be
partial
as
1,
the
as
Bonds which are not assented to
offer are subject to redemp¬
or earlier at the op¬
of
a
a
The
that
on
Kelling family have
The
at
amendment.
provides
preferred
7 V.-7*'7
GAS
MADISON
preferred.
shares
held
shares
shares of new 6%
2.600
agreed to purchase
warrants
to
for
trustee
152
additional
an
mon
be
Chi¬
Street,
Illinois
East
Feb.
at $1,025 for each
$1,000 principal amount of bonds.
Purpose—For extension of maturity and
reduction of interest and debt reduction.
Purchasing,
—
be
date
later
extension
tion
processing
and
marketing of Salted nuts.
\ "
Offering—The price to the public will
be filed by amendment.
Mae A. Urbanek
has
agreed
to
exchange
336
shares of
presently
outstanding
6
%
cumulative
prior preferred owned in her own right
lative
fix.
may
the
such
of
"
Business
stock.
event of
stock.
under¬
respect
in
will
.
offer will expire on,March
suen
or
tion
to
initially
the
in
preferred
non-
common
are
,
75,000
attached
stock
Details—See
'Brothers
Dec.
on
non-detachable
the
common
tificates
for
shares
issuance
for
exercise
and
par)
warrants
common
for
\
Lehman
CORP.
registered 75,000 shares of cumulative
preferred stock (no par) and 75,000 shares
Glore,, Forgan & Co., head the underwriting
,
amend¬
by
28
of
company
—
public .will
filed
be
No
company.
company
111.
cago,
and
offers to the
holders
of- its
common
stock rights to
subscribe for the new preferred at the
rate of one and
one-half shares of the
cumulative
preferred stock, for each 20
shares' of common stock held at a price
Underwriters
3,
the
CO., LTD.,
of Jan. 3.
issue
; Offering—The
stock, par $25.
Jan.
price
to
amendment.
*
,
300,000
of
issue
Offering—The
Underwriting-—To
amendment.
by
the
the
by
shares.
ment.
INC. on
l5ec. p20 filed a registration statement for
149,883
shares
of cumulative
preferred
stock,, par $100.
The dividend rate will
filed
for
convertible preferred
5%
•
&
of
1946,
outstanding
writing discounts of commissions are pay¬
able
28 filed a reg¬
shares of
TEXTRON, INC., on Dec.
istration
be
be
securities
........
of
holders
certain
offer
the extension
common
to
Address—365
un¬
discretion of the
MONDAY, JAN. 14
MORRIS
3.
Jan.
per
Details—See
PHILIP
of
issue
76,000
extension
cumulative preferred shares and
shares are being offered
2,600 6%
only
share.
Underwriting—No underwriting.
.
u
common
will
statements
become effective,
course
less accelerated at the
Dec.
on
of
Offering—The offering price to the pub¬
filed less than
grouped
registration
ago,
Details—See
registration
twenty
according to dates
whose
Issues
were
CORP.
shares
20,000
Thursday, January 10, 1946
of New Security Flotations
stock, $100 par value.
FILINGS
NEW
Lta*
statements
registered
& FINANCIAL CHRONICLE
Shares not so. acquired
generally to the public,
the
option not" be exercised
by
Toronto Mines Finance, Ltd., the company
itself will make the offering/as aforesaid.
The
remaining
195,000
shares
are
to
ba
purchased by the company geologist, offi¬
cials
and
employees!
[Volume 163
Number 4454
GENERAL INSTRUMENT CORP.
THE COMMERCIAL & FINANCIAL..
CHRONICLE
Oct
on
of
25 filed a registration statement for 60 00i
cumulative
shares
$20
-
and
The
par,
$1.
par
will
ierred
260,000
dividend
filed
be
reserved
the preferred.
stock
mon
of
shares
Issued
is
and
outstanding
of Nov.
and
The
Pittsburgh,
to
price
Offering—The
and
statement
rate
will
'
for
filed
be
Bids
the
Invited—Bids
bonds
28'filed
$4,800,000
by
for
the
1429
Walnut
11
a.m.,
Jan.
St.,
Current Offerings, Pending
Issues and Prospective
bv the company
1946, the
to specify the interest rate.
•
of
Flotations
Philadelphia, up to
successful bid
14,
,
Normally each
,
periods
"
CORP.; on Dec. 7
filed a registration
statement for 14,999
'chares of capital stock, minimum stated
; value of $50 per share.
,
. ■ r. ,, '
GRAHAM-NEWMAN
,
Details—See issue of Dec.
•
SOUTHERN UNION GAS CO.
filed a registration statement
shares
stock,
20.
•
'pires
The balance of the
Jan. 30, 1946.
on
publicly .offered,
be
will
'stock
after
of* Offering'of foregoing shares.
Underwriters—None named. .
/,, .
i
LIQUID
Jpiration
filed
;
.
'
$100 par. , A £' *■"<
Details—See issue of Jan. 3.
t
shares-are to
stockholders at the
rate of one preferred^ share-for each 10
shares common- held.
Subscription rights
expire at noon,'; Jan. 26, 1946.
Any shares
offered to
be
common
subscribed for by common stockholders
will he.offereti to the public. /
Underwriters—Laird, Bissell & Meeds,
not
head underwriting
*'./'.. '.' /■ ;■ •• ■;^ "/./'■
Pierce;, Fenner & Beane
group.'
•
•
and Merrill - Lynch,
;Trask & Co.
Spencer
'
,
credit corp. on
Nov. 13 filed a registration statement for
40,000 shares 6°!o preferred stock, $25 par,
and 40,000 shares of common stock, $1 par,
and 40,000 common stock purchase war¬
rants and 40.000 shares of common re¬
served for issuance upon exercise of war¬
i
Manufacturers
issue of Nov. 22. .* " '
Detail*—See
preferred
stock,
-\ ''
Underwriters—Waiter F.
of common
1
.
•'-/'
;
Tellier, doing
^business under the firm name of Tellier &
CO.. New York, is named principal und«ur»
! writer.
filed
16
Nov.
a
shares
30.000
SERVICE CORP.
LINEN
NATIONAL
•
vertible preferred stock par $100 per
Details—See Issue of Nov, 22.
company
is
shares of $5
Offering—The
holders
4,624
of
a
on
to
through
v; /
Underwriters—Clement A. Evans & Co.,
shares
Unexchanged
at
underwriters
,
$105.
Inc., Atlanta, Ga, heads the group.
Dec. 5 filed a
NEW YORK DOCK CO. on
registration statement for $12,000,000 first
mortgage 31/* % bonds due Dec. 15, 1970.
issue
Details—See
of Dec.
of
preferred
is
pre¬
.
com¬
convertible
shares of
at
Underwriters—Burr & Co., Inc., 57 Wil¬
liam Street, New York
5, N. Y.
:
'
Dec.
21
filed
812,100
registration
a
shares
of
outlets.
statement
stock
common
Of the total,
238,000 shares will be
purchased from the company by the under¬
writers, while 574,100 shares will be
lic
ings,
Stone
—
&
UNITED
CORP.
STATES
Nov.
on
AIR
21
Halsey, Stuart & Co., Inc.
and
corporation
to
'
,
Offering temporarily- postponed.
.
been
Of
the
on
list
the
on
Curb
shares to be sold
Underwriter ;
York,
is named
VALLEY
filed
a
of
this
George
OIL
class A
CO.
statement
stock
(no
Underwriters—The
crease
New
Oil
Coi
of
Texas,
N. Y. •/';••/,■
YorK.
165
Dec, 19 filed
being
are
sold
issue
of Nov.
29.
;.
Offering—The price to the public is $10
■/■
1
;,h ',•/■/■,
:/'Underwriters—None.
The securities are
being offered by the corporation.
Registration Statement withdrawn
1945.
.
PACIFIC
COAST
AGGREGATES,
filed
registration
21
Dec.
on
-V
a
.f.-'/v;'
Co.
15,000 shares of cumulative preferred
stock/convertible series, $100 par value.
issue
of Jan.
3.
V.-;:
■
j
Offering-^-The price to the public will be
by amendment.
.
;
filed
Underwriters—Blyth
Schwabacher
writers.
Co.
&
&
Co.,
i
PORTLAND
a
statement
income
notes
for
due
$900,000
Jan.
1,
issue of Jan.
in
3.
Offering—The offering is to be at par,
total net proceeds to the corporation
at
$900,000.
Underwriters—No
RED
BANK
OIL CO. on May 31
stock
common
Details—See
"
of
filed
a
for 990,793 sharer
June
7.
Offering—Of the shares registered Ben¬
nett & Co., Inc., parent of Red Bank, will
receive 209,97o shares in return for a like
number of shares loaned to the registrant
In connection with the acquisition of 54%
of the outstanding stock of Seatex Oil C5.,
Inc.
In addition, 150,000 of the shares
registered will be issued to stockholders of
Federal Steel Products Corp. in exchange
stock.
Bennett & Co.,
underwriter as to an ad¬
shares of common regis¬
for all of Federal's
is the sole
ditional 100,000
Inc.,
tered.
The
balance
of 530,823
shares
of
stock being registered have heretofore been
to Bennett & Co., Inc., in exchange
issued
for various
obligations of the registrant.
—
Principal underwrltei
Dallas. Texas.
Underwriters
Bennett <fe Co., Inc..
Hearings—Stop order hear¬
ings to determine whether the effectiveness
Stop
Order
and
Lehman
shares
54,000
Brothers.
RED
a
220,000 shares
(Canadian).
class
shares
A,
'brisk
the
of
Details—See
MINES,
LTD.
ot
capital
issue
of
stock,
Aug.
$1
par
is
60Vz
cents
Canadian
r 1
2.
53
or
centi
State? funds.
Underwriters—Willis
New
E.
Burnside & Co.
York..-
demand
was
reported
for
Atlantic
The
:
price
of
101
for
public
offering, brought the indicated
yield
down
to
approximately
2.55% which represents
low
class
registration" statement foi
of
tell
Refining Company's
new
20-year 2%%
debentures,
brought to market yesterday,
$5
/.•/•-''////••,"
LAKE
should
Atlantic-Refining //-''-.'/i
Notwithstanding the low yield
afforded at the. offering price,
capitalization
of
fortnight
/;'VV•-
selling
Offering—The offering price to the pub¬
lic
b1 i
it appears
q
thai
ample
as
.-/^y v;
of banking houses is
of
purpose
York
City's
financing I
clear-1
slum
program.
a
GRAPE
JUICE
registration
CO.
statement
on
Nov.
for
return
for
an
a
new
industrial
undertaking., '•... /.-./■'
This operation involves the of¬
fering,
well, of 102,000 shares
$100 par value cumulative
preferred stock. The new shares,
of
as
new
however,
itially to
are
being
common
offered
in¬
stockholders,
with bankers
prepared to under¬
write any unsubscribed
portion of
the issue.
/ :
shares of second preferred
stock, par $100.
Details—See issue of Nov. 29.
Offering—The 20,392.8 shares of second
preferred are being offered to the
holders
second
stock, at the rate of two shares
preferred for each 15 shares of
common
held, at $100 per share.
Navajo
Corporation has agreed to purchase all of
the
unsubscribed
shares
at
■any discount or" commission.
it will purchase the
$100
investment, and
the
public.
of
for
The successful
banking group,
bid the stock in under
the
Securities and
to
Exchange
Commission's
Rights expire Jan.
An
fered
additional
through
others at $20
An
fered
per
to
19,077
the
76,310
employees
ding rule
will
be
employees
of¬
and
shares
and
will
officers
at
be
of¬
company
a
Bankers
proceed
the
will
is
he
Tuesday, paid the
price
a
bid¬
of
101.42
for
rate.
announced
with
they would
reoffering later in
week, expected to be today at
price of 102.85 a share. Indica¬
tions pointed to a quick
closing of
the subscription books.
a
$16.50
not
contemplated
underwritten.
on
competitive
3.60% dividend
is
offering 102,000 shares of 3.60%
series
labor and materials and such
abling
legislation
.
B
$100)
at
preferred
stock
(par
$101.50 a share first to
of
one
each
common:
stock at the
share of preferred for
shares of common. Pre¬
26
ferred shares unsubscribed for
Jan. 25 will be taken
underwriters. :'</
-
••
Of the
proceeds,
on
by the
up
</.v,:,/
■
•
:/■'
as
en¬
be
.may
needed.
into general funds to pay off
bank loans and to finance
expan¬
sion
of
go
refining, transportation
marketing facilities."
'
•Upon completion of the financ¬
ing capitalization will consist of
and
.
2,663.998 shares of
148,000
shares
common
of
4
stock, /
cumulative
convertible
preferred stock /and
the debentures and 3.6%
preferred
stock now being
offered./
;
;;
;
-
Tucker
Be Partner
to
Cawthorne
& Troeber, 120
Broadway, New York City, mem¬
bers of the
New York Curb Ex¬
change have admitted William C.
Tucker to partnership in the firm.
With
the
two
aforementioned
large marketings out of the
:
DIVIDEND NOTICES
LEE RUBBER & TIRE
By A. G. Becker & Co.
CORPORATION
Formal public
offering of 150,shares of The
Visking Corp.
000
class
A
made
stock
common
today
by an underwriting
group headed by A. G. Becker &
Co., Inc., and Lehman Brothers.
younsstown, Ohio
:
The offering represents
ing
REPUBLIC RUBBER
INDUSTRIAL RUBBER PRODUCTS
being
(Thursday) at $35%
share
per
is
no
LEE TIREt RUBBER CO. of N.Y.
TIRES, TUBES & SUNDRIES
financ¬
Conshohockcn, P«.
the company's part but a
partial distribution of the hold¬
ings of present stockholders in
on
this
The Board of Directors has this
day declared the regular quarter¬
ly dividend of 50c per share
previously closely held busi¬
The
apply
for
on
company
expects
the New York Stock
The /
Visking.
Corp.
chiefly cellulose
of
Exchange.
business
meat
Other
are
dividend of 75c
extra
the
on
per
outstanding capital
stock of the Corporation
produces
used in
"skinless"
frankfurters, and for other
an
share
'
payable
February 1,1946, to stockholders,
casings
the / manufacture
products.
and
to
listing of the shares
a
of record at the close of business
January 15,1946. Books will not
/"•' be closed.
divisions of the
engaged in the manu¬
'/'•. ±
'
:
•'
WM. B. DUNLAP
Dec. 27,1945
Treasurer
facture of plastics.
Production of
cellulose casings began in
following
search to
product.
1926,
laboratory re¬
years of
develop and perfect the
Tonnage output has in¬
creased in every
subsequent
year.
Earnings have likewise followed
a
FLEMING-HALL
TOBACCO CO., INC.
generally upward trend. Net in¬
Dividend
in 1944 amounted to
$1,169,to $1.97 per share
come
the
and
and
594,000 shares of class A
class
in
1945
B
the
to
stock
first
outstanding,
nine
$930,683
or
months
$1.57
of
per
^
on
Preferred Stock
854, equivalent
on
Directors of this Corporation
have declared
a
regular
quar¬
terly dividend of fifteen cents
(150) per share on the 6% Cu¬
mulative Preferred Stock, pay¬
able January 15, 1946 to stock¬
ruption since 1930.
holders
Monthly pay¬
ments of 13% cents per share (an
annual rate of $1.59) have been
declared
and
way,
for
January,
February
March, 1946.
of
of business
record
at
the
close
January 8, 1946.
FLEMING-HALL TOBACCO CO., INC.
•
.
By S. C. Korn,
President and Treasurer
Reese Associated Willi
COLUMBIA
Wm. J. Mericka & Go.
(Special to The Financial
CLEVELAND,
armed
has
recently
service
Prior thereto he
been
Cumulative
as
President of
No. 67,
renegotiator.
was
Receiver with the
Currency.
Cumulative
the
the Second National Bank of Ra¬
and
The
No, 77,
was
National
Bank
Comptroller of
ELECTRIC
Board
of
Directors
has
declared this day the following dividends:
Mr.
in
&
CORPORATION
OHIO —Albert
Building.
Reese
GAS
Chronicle)
D. Reese has become associated
with Wm. J. Mericka &
Co., Inc.,
Union Commerce
•
$25,375,000 will
be used to redeem a like
amount
of 15-year 3% debentures
due in
1953 at 101
The remainder will
!
>■
soon such
paper would
available, however, ap¬
pears to depend on
general con4
ditions, chiefly the availablity of
venna
Looking Ahead
/-.--•
.
issue
to
share.
Underwriters—It
that
shares
options
a
additional
share.
per share in ratio of
each four shares
held.
15.
large
which
shares
$20
share
other
shares of $100
par preferred, was
expected to be placed on the mar¬
ket today.
\
shares
new
only
undertaking for the cur¬
week, marketing of Buffalo
Niagara Electric Corp.'s 350,000
WESTERN AIR LINES,
INC., on Oct. 29
filed a registration
statement for 197,876
shares of common
stock, par $1.
Offering—Stockholders of record Dec. 28
are given the
right to subscribe to
102,489
new
week's
corporate
Underwriters—None mentioned.
one
The company at the same time'
The
company
has paid
monthly dividends without inter¬
Niagara Electric
rent
without
not for distribution
The
:
Navajo states
unsubscribed
for
Buffalo
23
20,392.8
debentures offered at 1011
yield 2.56%./..- ///•./.. • -'./'/.i;
to
Just how
,
•
p u
prove
i
/
leaning
share.
WELCH
filed
of
(par $11.
issue
the
of common
underwriter named.
statement
registration
of
.
by
Company's
a case
story of just how far this
buying will persist. /
;
0
common stock/ par $5.
Underwriters—A. G. Becker & Co./ Inc.
VIRGINIA
1971,
with
placed
26./
United
providing for interest at the rate of 10%
payable only from income.
Details—See
..
are
being pur¬
of stockholders. The
received
540,000
June 24 filed
MEADOWS oh Dec. 20 filed
registration
unsecured
•*/;■
/
.
under¬
of
common
and
and
Inc.,
principal
are
be
to
amendment.
par
for
Details—See
Price
by
INC.,
statement
/
shares i
group
pi\fchases. It is
the
group and price to the public will be filed
B
v■<■■■ v
a
certain
54,000 shares is being pur¬
from E, I. du Pont de Nemours &
consists
Dec.
a
largest block,
chased
.
per share.
29,
Offering—The
chased from
by
/:/•"•' .\v/:/:///,,;
.
the
ness.
registration statement for 150,000 shares of
class A common stock, $5
par, .The shares
and
at the cost
■
,
issued
Another
Gil-
•'
on
demand
even
Broadway,
■>.
CORP.
persistent
and demand working
inexorably against the investor.
par).///: •j
is
which
manner
of supply
113,468
underwriter
Details—See issue of Dee.
Details—See
for
ground
leaps and
reducing the yield returned
by such
13
Details—See issue of Aug. 16.
1
Offering—The
price
to
the
public- is
$12.50 per share. ;
.V../••■.';/
CORP.
BATTERY
CADMIUM
NICKEL
of
•
Aug.
on
a
of
be made
high
by
a
from investors
New
-
course,
indicates
additional
Breen,
.
into 'new
of
bounds, but in
prospectus.
F.
have
edging higher since the turn
thenar.;;.:5:
moving
underwriter;.//,/- \//'/
OSAGE
registration
shares
150.000
under
—
cannot
much,
not,
York
Exchange 350,000 shares of its com¬
mon
stock which is
presently issued and
outstanding and application has been made^
stockholders.
/on'Nov..23 filed a registration statement
for 35,000 shares of capital stock, par $10
New
to be that
seems
A11 three categories have been
Curb
are
.
-
list
for
ance
to
may
A group
offer¬
pressure
2V2%
eligible for investment by
banks, along ' with railroad ,and
public
utility obligations
have
Offering—The price to the public is $4.5C
per share.
Application has beeh made by
the
such
New
financing, amounting to!
$35,200,000 in behalf of the Atlan-J
tic Refining Co. was
undertaken.'
Jan. 9 by underwriters headed
by 1
Smith, Barney & Co., in a pUb'ljc!
offering of $25,000,000 20ryearj
rate of
pre¬
/reported to have agreed to un- i
tier take commitments
for a total j
of $1,675,000,000 of
such loans j
New
new
who
obligations
supply
appreciable
any
those
housing authorities
mar¬
to be feeling the
Preferred Slock Offered!
bonds
29/
Nov.
seasoned
conceivably
if any lower. Yet
government securities, especially
for 500,000 shares of common
stock, par 10 cents, of which 150.000 share*
are to be offered
through an underwriter.
of
of
rates
work
statement
Details—See issue
a
sizable
consensus
money
and
&) Co.
registration
a
the
"■
The
CONDITIONING
filed
of
For
them¬
at
buy.-
Webster
Inc., I and White,: Weld
the underwriting
group.
facing
appears
influence
;'
Offering—The offering price to the pub¬
will be filed by amendment.
Underwriters
find
money
But the
volume
pur¬
from certain stockholders, 3
Details—See issue of Jan. 3.
are
ket, in lieu of
(par
$5).
chased
idle
;.
weil-nigh
impossible task in seeking new
TENNESSEE GAS & TRANSMISSION CO.
for
with
moment
.
oh
'//■,// "';"/■//
Investors / who
selves
stock.
common
Debentures and
holders
block
a
$100
Housing Loans Loom
; /
The
any time into lJ/2
THE VISKING
Underwriters—The
underwriting
group
be headed by Havden,
Stone & Co.,
/ V
ferred.-
13.
will
is
of
time goes on.
,
payment.
•
settlements."' ./;/.
their
share
with
the
cumulative
and 21,695 shares of $7
the opportunity to
shares for the new shares
lor share basis, plus a cash
there
.
ferred of Philip Morris &
Co.,
Ltd., which is destined for in¬
itial offering to common
hold¬
ers,
and
a
block
of
100,000
shares of Sinclair Oil
Co., com-;
mon stock.
*
;
ordinary conditions, comes along
in July the period of semi-annual
shares
outstanding
to
offering
a
149,893 shares
mon,shares at $10 a share.' The common
shares ate reserved for conversion of
pre¬
preferred
cumulative
exchange
share.
•
stock
"preferred
..
•
on
registration statement for
of 4Va%
cumulative con¬
of
addition
ferred "stock are to be offered first to the
holders of the company's
100,000
■
.
..
.
In
usually de¬
accumulated
potential
block of 812,Tennessee Gas &
of
toward
,
Offering—The
the
,.
seeking to place in
employment funds
have
the
among
offerings is
shares
the year.'
/v ' ;//'•'■ „'/
V The second such
period, under
head
-
which
and 150,000 shares of com-t
($1 par), i ,/-.'
•
Details—See issue of Dec. 20.'
/;'/"
is
Corp., which could
reach market oh
Tuesday, with
the Street
talking about a price of
around $12 a share.
;
them over the year-end in the
form of dividend and interest pay¬
ments and from issues which have
reach maturity with the turn of
12 filed
($8 par)
stock
mon
Co.
~
Transmission
are
profitable
registration statement for 100,000 shares
stock
pub
Offering—The offering price to the
lie will be $30 per unit, a unit consisting
of one share of preferred and one share
investors
.
Dec.
on
Blodget,
rants. •'
'
.
STERLING ENGINE CO.
de¬
000
velops along about this time when
'
;
reinvestment
/ Largest
stock
potent influence in the
a
,
'
\
Offering—The-preferred
v
vvi,"..
brings two
year
bond market. The first
by amendment.
/. •
'
Underwriters—E. H. Rollins & Sons, Inc.;
heads the underwriting group.
cumulative convertible pre-
stock,
rferred
•
27,000
preferred
filed
a
21
CARBONIC CORP. on Dec.
shares of.3
$100.
par
for
cumulative
of 55 cent cumulative convertible
registration > statement for 72,810
a
'/a %
when
.
mand is
Offering—The price to the public will be
ex-
j.
,
" 4
10
Details—See issue of Dec. 20.
the
14,999
shares 5,000
shares, are offered tp stockholders of record
Jan; 7 at $100 per share.
This offer exOffering—Of
"
of
Dec.
on
there
small bond issue
one
$4,800,000 first mort¬
30-year bonds of Seattle
gage,
first
purchase
moment
Gas Co. on which bids are due
to be opened next
Monday.
a
amendment.
will be received
at
fiscal agent.
Nov.',
on
investment
next week,
Inc.
Co., *St
Nordman
CO.
the
prospect of
Details—See issue of Dec. 6.
Underwriters—General Finance Co., At
is
At
given
Cunningham,
John
GAS
the
.
-
$7.50 per share.
Ga„
K.
that
•<
Mo.
terest
it
public
the
is
public
appeared
tions,
and
these
pretty
well
spaced, for the next fortnight or
SO.
'
"•'/ ; •'••/ ••• "• '
mortgage bonds due Jan. 1, 1976. The in¬
a
.
ianta,
price to the
average
registration
>'
it
market would find itself more or
less on a diet of new stock flota¬
Julj
on
100.47.
SEATTLE
registration statement for 200,
C00 shares of common stock, par $5.
,
'
Details—-See issue of Oct. 4.
•.
filed
COMPANY
.
oouis.
GENERAL SECURITIES CORP. on Sept
28
sus¬
.
Underwriters—S.
will
public
derwriting group.
1
be
Details—See Issue of July 19^
'
"
' '
Offering—The price to the public of the
different series ranges from 99 to 102
Underwriters—Burr & Co. heads the un
,
should
registration statement for $500,4J/a% equipment trust certifi¬
a
serial
cates.
as
1.
the
Offering—The price to
be filed by amendment.
000
Thf
being sold by certain stockholders.
issue
LI filed
pre-
The 160,000 shares of com¬
Details—See
statement
ROBERTS TOWING
common
rate on the
amendment.
by
registration
pended'now pending before the SEC.
preferred
registered includes 100,000 shares
for issuance upon conversion o*
..common
f
convertible
6% Preferred Stock, Series A
quarterly, $1.50
Preferred
per
share
•
•
Stock, 5% Series
quarterly, $1.25
per
share
5% Cumulative Preference Stock
•
No. 56, quarterly, $1.25 per share
payable
record
February 15, 1946, to holders of
close of business January 19, 1946. '■
on
at
,
Dale Parker
January 3,1946
Secretary
CHRONICLE
THE COMMERCIAL & FINANCIAL
166
Chilean Inst Assets
to
i
Over $6 Million
(Continued from
whose
Advices received from the Au¬
tonomous
V'
126)
(Continued from page
affects more than stockholders and workers in any and
every enterprise; that consumers,
who have paid these profits in
prices,
and
the
Government,
charged with the task of raising
at least $25 billion to $28 billion
revenue a year for some years,
have also a direct interest in the
distribution of the profits of enterprises.
,v v..!.;
profits
and $3,000; and 3,700,000 over
000.
.
,,r,
$3,-
•
for
prices
wartime
their
own
countless
devote
interests
hours
ation of
banker
to
system of free enter¬
should
in
tion
Bond
extreme
use
cau¬
making recommendations
to
Gov¬
at
and
other
should refrain from passing
patriotic
endeavors,
around
whom the business has rapidly re4
gained its prestige.
this level of the
He
market.
,'V-;
alon'g
■*'
tips unless, after careful investi¬
gation, he strongly favors the se¬
curity in question. He should re¬
men
member
Prestige Should Be Guarded
preferred
financial position of Corporation; $4,515,519 represent¬
That prestige should be cherish¬
several million families, probably ed receipts of taxes on the profits
ed tmd guarded. Investment bank¬
of the copper enterprises; $53,696
as many million as those with less
ing is now largely a business of
power,
now,
than the quota of duties on petroleum
The intent of Government to purchasing
imported for the nitrate industry, oldsters, it needs new blood, it
when the war started.*..
'7'V.y."
must be; attractive to the right
pay a large part of the National
and $84,113 the quota of duties on
We respectfully ask therefore:—
Debt through higher prices, an
petroleum imported for the cop¬ type of young men, the type who
1. That you tell the American
unthinkable brutality, would be
will only come into a business
per industry.
The advices from
thwarted, if the exclusive right of people in your talk to them, or the Institute Dec. 31 added:
that is basically sound.
Without
workers to profits,—above a small your Message to Congress on the
these men the business Will perish
Fifty per cent of the total re¬
return
to
stockholders, — were State of the Union, whether it is
and without a sound reputation it
ceipts will be applied by the Insti¬
conceded.
v7;f4'7v,; the intention of the Administra¬
will perish anyhow, but earlier, i
tute under the terms of the Chile¬
At least an eighth of the fam¬ tion to pay off a large part of the
With a world trend toward so¬
an Law to the payment of interest
Debt7 through
higher
ily units in America cannot in¬ National
at the ratey of $12.02 per $1,000 cialism^ the systehi of private en¬
crease their dollar, income mate¬
prices.
aind
banking
in thel
bond, dollars 0.28247 per 100 Swiss terprise
2. That you request any Factrially, if at all, and most of them
ffanc bond, and
£ 1-4-0,48 per United States is hanging in the
have
incomes
under $1,500, a Finding Board you set up in
£100 sterling bond.
\ balance/; In addition to its plan
labor
large proportion under $1,200.
disputes to consider the
Restrictions on exchange opera¬ to nationalize the Bank of Eng¬
v; One of the best statisticians in rights of unorganized consumers
tions which still prevail in some land, Great Britain's-Labor Gov4
the Government told me recently, to no -increase in * the prices of
foreign markets as a result of the ernment has conceived the idea
that under present policies, it is necessities, or even to a reduction
World War, have not permitted of a Board through which invest¬
expected that the cost of living from wartime ' peaks, and the
Caja to effect the conversions nec¬ ment processes would be central¬
will increase about a fifth within claim of Government, represent¬
This Board would have full
essary to set up reserves in Swiss ized.
a year or so.
ing all of us, to -part of profits francs to meet the servicing of authority to determine the an¬
Organized labor which asks an obtained through prices paid by
loans
issued
in
this
currency, nual amount of private invest¬
increase of 30%
in wage rates, the masses of consumers.
and
allocation
thereof
which has compelled Caja to fix ment
.
.
•
our
prise and banking, the investment
and Sales
Chilean Nitrate Iodine
in the public interest
the interest of a continu¬
■
Drives
ernment
of
profits
the
in
seasoned
were
126)
page
therefore,
men
aside
set
\ ;
amount, said the Insti¬
of participation
the
indicates
billion,
skill
tute, $2,243,827 represented the
receipt from
the Government's
to
scarce goods due
individual
savings
$40
some •
Of this
in other
of experience and
in their business, men who
veterans,
amounted to $6,897,157.
changed
figures somewhat.
The fear of wild bidding up of
these
lay
and in
survivors
The
the
Chile reported that
the total receipts of the Institute
in 1945 available for debt service
....
has
end
war's
The
Institute for the Amor¬
Republic of
$2 000
talents
real
directions.
tization of the Public Debt of
7
' ; ; ,7.
of . $2,000; 4,600,000 between
the distribution
of the fact that
Thursday, January 10, 1946
....
that
level
industrial
expected high
activity does
necessarily guarantee to all in¬
not
of
an
dustries and companies their pre¬
profit margins.
Neither will
and ability
industrial managements that be¬
fore the war enjoyed a little suc¬
cess.
Above all, he should re¬
member; the lessons of the past
and
discourage radical specula¬
tion. 7 He would stress " earnings
war
it
endow
with
brains
dividend
and
down
return
speculative
stocks.
In doing
may
be
but
its
will be
talk
and
movements
in
this, his business
little less active today,
for the future ift:
a
promise
more
assured.
*
■
,
•
apparently hopes to buy immun¬
3. That you urge Congress to in American dollars the dividend
ity from such drastic inflation at have an investigation made at
corresponding to holders of bonds
the expense of all consumers, but
once
of
the
capital set-up. of of the above mentioned loans and
it admits the futility of such dol¬
major corporations, as has been to maintain in this same currency
lar increases, in its warning that
done by the Federal Power Com¬ the funds to cover the payments
it will seek, whatever it obtains
mission for power companies, and in due course.
"now,
another 30% increase in to tax land
values, directly or
Against the remaining 50 % : of
wage rates, in a short time.j
through an excise tax, based on the income collected, there have
The United States Department
the value of holdings, as the most been retired $6,479,500 face amount
of Labor recently reported on dis¬
effective
method of preventing of dollar bonds and £ 227,989 of
tribution of 48,600,000 workers by
the imminent disastrous specular sterling bonds and Swiss francs
annual wage income in 1943, ex¬
tive boom in the selling price of 15,000 face amount of bonds is¬
clusive of agriculture, domestic
service, nonprofit organizations
and government.
v
<*■;
35,000,000 had under $2,000 :
7;?00,000 had $2,000 to $3,000
5,900,000 had over $3,000 /^.o
Of 23,800,000 Workers in manu¬
facturing,—15.500,000 had under
and urban lands, such
both rural
as
All these measures will benefit
members
of
labor,
organized
bers.
(Continued from page 126)
.
to be
And the hours of work are
the com¬
These plans for
reduced.
to be furthered in
directions in the future.
The
ing year
all
are
people have just gone through a
crisis of blood, sweat and tears
and
psychologically they want to
relax and: celebrate.
More
for
the
is
all
coming era of "wine, women and
song." The end of the quotation
who don't
those
that
says
these
like
Maybe
fools.
things
are
those
people
their
money
who don't invest
in businesses and
$
, ,
the sames category.
These haye small labor factors in
their .costs,
are
subject to the
minimum of regulations and are
the greatest beneficiaries of re¬
and especially the
elimination of the excess profits
taxes
'7:V"*'7 "/7*7
tax.
From
the sparks which
burn; Rome.
But, in the
The
\
fires
being lit.
are
them may come
will
meantime, it looks as if we are in
for
In
a
spree, y ■■■■
a
market
cally high
..
which
is
histori¬
(prices have exceeded
those of the present only once in
the 1929 era), we find most com¬
mon
stocks selling on a ratio of 25
times earnings; and
3%.
yielding about
are falling,
Business indices
national
income
declining
and
Europe, Asia and South America
going
are
of many
as
will
be
socialistic.
businesses
and
wages
ceed all
?
1945 re¬
after the foregoing
ing
tirements will be
bonds,
£27,513,082 sterling
bonds,
and
francs
108,647,500
Swiss franc ; bonds, * The last of
these balances has been further
reduced
by
1000 ' Swiss
franc
bonds.
This reduction represents
Swiss franc bonds amortized by
lar
Municipality
on
for; many companies.
While the stock market gener¬
108,646,500.
levels based
clared is expected
seems
present and past
on
performances,
will hold up
come
and
present
an
believe busi¬
we
for
some
therefore
the
think
those
that
situations into
unfavorable
from
benefit
will
the
economic factors of the approach¬
ing
era.
disbursement
interest
about Feb. 1,
de¬
•
to be paid on
1946, and will be
loan, and bonds of the two City
,
of Santiago, Chile,
loans.
.:
are
The
costs
rising fast,
materials will
ex¬
peacetime highs and taxes
38%
against
15%
(the
The National
City Bank of New
York, 55 Wall Street, New York
City,
announces
Barnett,
Jr.,
that
George
recently
E.
released
from active duty as a Lieutenant
USNR, has resumed his position
with the
Municipal Bond Depart¬
ment of the bank.
••'*{
Reilly & Co., Inc., 40 Ex¬
now
tion.
doing business
Officers
are
as a corpora¬
John F. Reilly,
President and Treasurer;
Frank J,
Vice-President;
Sydney
McCall,
Holtzman,
Vice-President;
Robert A. Duncan,
were
Secretary,
and
All
formerly with J. F. Reilly &
announce
of
John
R.
formerly With
ity to - the public and, in selfpreservation, a responsibility to
themselves. : Their business has
but little chance of surviving an¬
If
Advisory Firm in St. Paul
widespread public
reproach regardless of the extent
'vy.-'.-
Lincoln Hams Forms
the Pioneer
ther period of
to which the true blame rests with
them.
Caesar's
Like
must be above
There
are
,
that
merit
sober
thought.A; /public/official;has
recently
commented
upon
the
prevalence of stockmarket tips.
We in the business know that this
is true. Hardly a day passes
with¬
quota of golden opportu¬
nities.
The investing public is
avid for new ones.
It is in funds
and has the bit in its teeth. And
out
PAUL, MINN.—Lincoln S.
LincolnS.
formed
has
Harris &
Co., Inc.? with offices in
Building to act as in¬
vestment advisor.
In the past he
was connected with Shields & Co.
in Chicago,
its
as a
as a
iR
BOSTON, MASS.—May & Gan¬
Inc., has been formed to con¬
investment business of
May & Gannon, 31 Milk Street,
Officers are William F. May, Pres¬
non,
tinue the
ident; Joseph Gannon, Vice-Presi¬
dent; and William J. Burke, Jr.,
Officers were all part¬
Treasurer.
of the
Becker
&
Max T. Allen Resumes
spectacular.
Co.,
Call it
an
inflation market, call
it what you
tended
as a
Q. Public will get hurt, and just
as sure as night follows day,
he
look
for
:IMv:
;/>■/;/
iwi'-"
HAZELHURST, MISS.—Max T.
Alien has resumed his municipal
name
of Max T. Allen
Company
with offices in the Merchants and
Planters Bank Building.
recently
returned
•
He has
from
active
77/7:
Rejoins Hickey & Co.
(Special
to
The
Financial
Chronicle)
Stock and Bond Brokers, Banks,
Veterans help solve your employment pro¬
They form a gold mine of intelligent, capable,
men willing and anxious to work and build
'
sive manpower,
City,
announce
Winfield
with
Bond
the
has
firm
that* Robert
become
in
Department.
the
C.
■;
trained
for the
f//■fl':/'-
associated
Municipal
Mr. Winfield
prietor.
Co.
well trained and qualified.
:v*f
...
:
cooperating with the U. S. Government
Placement Service who has a man for the position.
We are
Write and tell us the
Veterans
-
positions that are available.
ALFRED W. MILLER, Chairman
Americanism
7/7;
duty in the U. S. Navy.
in the history of this nation has there been
available such a rich reservoir of skilled, ambitious, aggres¬
rated, 54 Pine Street, New York
IS
securities business under the firm i-m ■
someone
future.
Incorpo¬
;t/j.
Investment Business
•
Let the War
Dept.
71'
predecessor firm.
Never before
G.
ex*??-'-.
.J-v'
ners
tips make good,- at least marketwise, with advances that in
instances can only be termed
young
A.
■■■
the
gram.
A. G. Becker
|fr;
May, Gannon Incorporates
general
R. C. Winfielt! Joins
-W/'
'ZJ:
Lieut. Commander USNR, has
resumed his activities
S#
H/*
WC:
,
elements in the pres¬
situation
ent
wife, they
suspicion,
■,
ST,
Harris
that V. Theodore Low,
II).
was
Responsibilities
recently released from active duty
was.formerly with Phelps, Fenn &
factors which will
He
of the New York Stock Exchange,
Co., of which Mr. Reilly was pro¬
are
management
Duties at Bear Stearns
peacetime high before World War
These
the
;
f•
right back in the position that he ; CHICAGO, ILL. —Francis H.
occupied during the Thirties, but Duller has rejoined Hickey & Co.,
this time he will be down for
Inc., 135 South La Salle Street,
.
Bear, Stearns & Co., 15 Wall good.
after serving in the U. S. Army. ;
In a spirit of self-preservation,
Street, New York City, members
Now J. F. Reilly & Co., Inc.
J. F.
office at 418 Olive Street under
to blame,
and that someone will be the
banker.
Then the banker will be
partner with the firm.
change Place, New York City is
LOUIS, MO.—Blair & Co., WS
the opening of an
announce
7 Our investment bankers have a
dual responsibility, a responsibil¬
will
V. T. Low Relurns to
Nal'l Cilj Bank
WW:
ST.
Inc.,
I. M. Simons & Co. for many years.
.
>
Office Under Thomas
Thomas.
will. This is not in¬
market letter and the
reader is entitled to his own opin¬
ternal Bonds; Water Company of ion as to where the market is
headed. But the investment banker
Valparaiso bonds; All Mortgage
reader should stop and think—if
Bank of Chile bonds; Bonds of the
the present trend toward indis¬
Chilean Consolidated Municipal criminate buying continues, John
or
time to applicable to.the following bonds:
All of the Republic of Chile Ex¬
opportunity to switch
from
The
,
some
Swiss francs will be Swiss francs
high and many indi¬
vidual securities are at dangerous
ally
industries.
Investmentr Bankers'
»
$150,554,500 dol¬
in
put
duced
.
The amounts of bonds outstand¬
of Santiago in
the year 1945.
After such reduc¬
earnings tion, the outstanding bonds Of the
■
external debt in
circulation in
industries related to them should
be
'
sued in that currency.
the
,
adverse effects
have
ness
and more leisure
invitation to the
money
as
workers, as well as the four-fifths
of workers, who are not mem4
Wine, Women and Song
,
]
followed World War I.
among among
1MS'*
754/,.
Comm. Wall St. Post,
American Legion, Federal Hall, 1
*
No. 1217
Pine St., New York, N. Y.
Volume
Number 4454
163
THE COMMERCIAL & FINANCIAL CHRONICLE
Baltimore Bond Club
Savings Bonds in War and Peace
(Continued from page 126)
uted among so many millions of
individual holders is healthy.
It
means that a large proportion of
our
An Educational Thrift Program
Needed
On
involved.
called
the
of
some
Hotel
The sales
as
a
reserve
as-j
make
holders easy
kinds
of
wildcat
all
to
prey
lines
of
earned
those in other
endeavor.
Savings Bonds
:
flationary pressures. The invest¬
ment advantages of savings bonds
to
the
posed
were
sale
of
savings
develop.
row
The
any
blight
can
bor-4
Treasury
from
Federal
the
Banks. There is
'rlVz%
about
for
rate
of
market¬
interest
redemption values
provides for a
but
Reserve
that
ac¬
savings
on
at
on
by the holders
bonds,
redemp tioi s
be
made
Treasury
savings
date
have
been
To
amount.
be
reasonable
redemption values, is
4%
over
;/■ .y"
Savings Bonds and Peacetime
Economy
V .
on
economy and they can make an
important contribution to the sta¬
in
sure,
bility
pected
by
war
as
was
ex¬
the
which amounted to about 400 mil¬
lion dollars per month at the end
of the war, increased to somewhat
$500 million
over
amounted
to
in
that
the
you
sonable.
,
to
has
that
- can
get
or
available, and without question or
embarrassment, should the bonds
now
has
peace
time when there is
done everything possible to expe¬
dite the redemption of these sav¬
ings bonds. I believe the fact that
ac¬
purchase, large-scale redemptions
and
spending of
the
kv.V:- SITUATION
funds
re-
reduce
the
factor
actual
tending to
amount
demptions.
of
/
1
re¬
more
during the
served
P.M.
on
and
dinner
promptly
at
Rivers Chambers and
the threshold of
on
Over-the-Counter
mission tickets promptly after re¬
ceipt from
of
them
of
their
8,
N.
25
Park
12
be
available
at
listed
experience
securities.
discharged
in
PHILADELPHIA, PA.
Bell
&
Co.,
Inc.,
price of $7.50.
Members who have returned from
the Armed
Services
will
HM
Member and guest tickets
may
be obtained from
Stein
Bros.
&
Boyce.
day, Jan. 15.
cial
from
New York
&
Park
of
Charles
Gilligan
'
•
velopment,
industrial
desires
position
organization.
with
Address
New York
24, N. Y.
Box
Chronicle,
25
Place, New York 8,
N. Y.
■
t-
and
RESEARCH
DEPT.
MGR.
By aggressive Chicago Stock Exchange
member house
doing primarily an over-
W. H.
Walnut
the-counter and
underwriting business
Chicago. Should now be successfully
employed in the investment business.
in
L.
Should be able to set
up deals, write
prospectuses, sales memorandums and
originate sales ideas. Also be capable to
■
Will Admit
Patrick
Gilligan
Company,
York
2
Rector
Street,
independent investigations and
negotiations.
Attractive
salary and
bonus—with the right man in
charge,
department will be expanded. Our per¬
carry on
y
and
sonnel
partnership in Gilligan, Will &
New
T
*
/
,
Exchange.
-
knows
of
this
Financial
advertisement.
Please write ;■£.
•
City, members of the New
York Curb
■'■if
17, Commercial & Financial Chronicle
25 Park Place, New York 8, N. Y.'
•
SITUATION WANTED
We have opportunities for:
EXECUTIVE
CERTIFIED PUBLIC
•Two Traders
•
Principal and Executive in public and
commercial accounting included:
We
Two Assistant Traders
in
installing four additional trading positions
Trading Department and require the services
are
our
of two high grade traders
State and Local Taxes.
traders
Cost Systems:
service.
Stock
Ex¬
Chronicle,
or
service
Contract
tion.
Mr.
Renegotia-
well
as
two assistant
or telephone
Joseph H. Young, partner.
f-'fv
,,y,
5. War Contract Terminations.
6.
as
men.
-ff Write
Standard, Job & Process.
4. War
Supervision of large
J. Arthur Warner & Co.
120 BROADWAY, NEW YORK 5
;
groups.
Place, New York 8,
7. Commercial Litigation.
Direct Private
Telephone COrtlandt 7-9400
Wires
to
Consultant to Accountant
Boston, Philadelphia and Hartford
Attorneys.
Cooperation with Engi¬
neers.
Security
11. Concise,
Wholesale
Analysis.
informative
Re¬
ports.
in
Rail
and
Industrial
&
Stock
Issues.
39
years
of
Mar¬
ently employed.
Commercial
Chronicle,
age—pres¬
Box JC-19,
&
25
Financial
Park
New York 8, N. Y".
Place,
A
12. Audits.
13.
14.
III. E. Krugman, 333 WT. 86th St.,
'■
■
v'?-*:
Robert Howe have been admitted
to
10.
ried,
de¬
Park
The
time.
1220, Commercial &
SECURITY ANALYST
■■
James
9.
Bond
aptitude test
banking.
part
-"V, i'\
association
.
change. Box R 110, Commer¬
ence
in
or
Financial
LeRoy A. Wil¬
dead line for reservations is Tues¬
phia office of E. H. Rollins &
Sons,
Inc.
Recently
Trader with 17 years' experi¬
Experienced
investment
Full
payment of $5.00.
trading depart¬
Wallingford.
Mr.
WMlingfard was .formerly
trading manager of the Philadel¬
ment
York
Psychologist
Thoroughly experienced
be fur-,
nished admission tickets
upon the
—
1500
the
announce
un¬
N. Y
Y.
Statistician Wanted
a
3.
Years'
Financial
Place, 1 New
notice
acceptance. Guest tickets will
1. Federal Taxes.
open.
Chronic.'e,
HELP WANTED
a
,
Well educated. Salary
&
his orches¬
2.
^Trader
(Female)
Commerc'al
organization after their
Wanted
WANTED
Fifteen years thorough and varied Wall
St. experience. Excellent secretarial back¬
10<*.
the
release from the armed forces.
P.M.
Members will be furnished ad¬
brighter and
more
enduring future than we
have ever known, or even
imag¬
ined, before.
:
:■■
and
C
with
be
tra will furnish entertainment.
co-operation, wisdom
patience, this great country is
and
8.
.Box
will
7:30
■v
ground. Christian.
announce
King have resumed their positions
6:30
Over 15 years continuous experience as
25
Assistant Trader
Kentucky
has
*
SITUATION WANTED
Inc.,
Building,
18, 1946. Cocktails will be served
at
bur,
'<
Co.',
Life
that P. M. Conway and Charles C.
ACCOUNTANT
ber of
a
a
After all, in the 170 years of this
available ;; for
holders know and understand the
been
on
exerted
Home
the
at
shortage of
a
goods
Government's attitude in this mat¬
has
perhaps
was
war.
Prefer association with mem¬
ter
but
that
sure
held
Bond
ers
any
"
of fact,
Federal
been
passing through, and at
be presented for
redemption. As a
the Treasury and
Reserve Banks have
cational programs which stress the
investment
qualities of savings
complished. However, during the
transition period, which we- are
consumers
should be done to cause
holders of savings bonds to doubt
that their funds will be
readily
the
to
bonds have
they
upon
can help
deflationary forces in
they should develop after the
transition
unrea¬
money prior to maturity in
they wish to do so. Nothing
matter
savings in
bonds can
savings
-
,
assured
their
case
individual
of
defeat
case
outstanding in
can
readily see
of the redemp¬
Holders of savings
been
of
monetary conditions and
August and
tions to date has not been
the
LOUISVILLE, KY.—The Bank¬
An¬
Friday, Jan.
economy
stabilizing influence
a
'
$700 million in De¬
amount
the
form
have
cember. In view of the $48 billion
of savings bonds
December,
of
amount
Redemptions,
some.
reduce
redemptions is to con¬
tinue these savings plans, and also
to Continue
advertising and edu¬
during
peacetime. From the standpoint of
the economy as a whole the
large
avalanche of redemptions
no
at the end of the
one
be
Belvedere
with them in the
V-
Savings bonds have-mader-taii
important contribution to the war
of
redemptions
have been increasing but there has
been
to
way
that
amount of
Street,
pcs::bie
a
the
might
me
their
The
relatively
Contrary to the fears of those
alarmed
effective
to
seems
of
—
years,
after the fifth year.
that
employes. It
convenience
will
For example, with
the 10-year maturity, the yield on
United States savings bonds, based
however large they might be.
were
for the
MD.
of the Bond Club of
return in the first few years
with much higher return in
,the final
question what¬
demand
time their vol¬
some
untary pay roll deduction facili¬
nual Dinner
reasonable
the
low
able
who
continue for
ties
securities
bonds
that the Treasury may not
to meet its obligations,
soever
be
no
secur¬
ities. It is to be hoped that most of
the
firms
and
institutions will
Country's existence as a nation, it
never been a
wise, long range
policy to sell America short, and
this is no time, of all times, to
deny the obvious fact that' with
of
able rates from commercial banks
and
marketable
by holding these bonds to
maturity
should
be
hammered
home at every opportunity. As
you know, the graduated schedule
short notice and at favor¬
on
term
crues
that
demand
ing in these safe and sound
in
that the Treas¬
has ample ability to meet
ury
foreseeable
savings
market fluctuations. The increase
bonds
placed upon the
Treasury. I have never been im-:
pressed with that argument for
reason
a
able
securities with comparable
maturity. They are redeemable at
stated values, not dependent upon
op¬
that they
the obvibus
the
bonds,
and
because of the heavy demand lia¬
bility
features
many
formed
many
modest scale and without the pres¬
est
pro¬
who
some
have
higher rate of inter¬
est—2.9%
if
held
to * maturity
compared with 2x/2% for the long¬
paid top rates of
individual
savings.
there
bonds
have
course,
that other securities do not have.
and have
gram
but
necessary,
They bear
riskless medium for the small in¬
Early in the,war-financing
the public. As
ings
individual
investors.
S a v 1 ngs
bonds have been a convenient and
for
advertised
be
to
compared with
other Government securities, sav¬
successful in reaching millions of
,
continue
.
Through the sale of savings
bonds the Government has been
interest
savings but in the aggre¬
should
•
vestor
development would
the loss of well-
cause
gate could add substantially to in¬
No Danger from Large Amount of
•V-v
only
have
who
many
not
as
of
habit will want to continue invest¬
individuals
schemes. This
well
that has been
the war is not
pressure
before accumulated savings
might
executives in trade and
as
during
exerted
by
pects of the problem, is evidence
industry,
insurance
or
who
of the interest being manifested by
thoughtful
BALTIMORE,
promote the sale of savings bonds.
designed
held
problems
meeting
today *
discuss
the
upon
never
proper so¬
manifold
This
to
a
effect
uals
ment services and refunds its debt
the
their
Baltimore
hand, I feel that
against the uncertainties of the
future would be most helpful. The
fact that savings bonds are now
in the way in which the Govern¬
of
in
to Bankers Bond
thrift and the hold¬
to encourage
by, and therefore interested
in, questions of public finance.
This general interest of the public
should contribute to
tionary
Conway, King Return
To Hold Annual Dinner
ing of savings bonds by individ¬
j people will be personally af¬
other
educational program
an
fected
lution
ceived would be extremely infla¬
general price level.
The Treasury has made a wise
decision in continuing to issue and
the
167
Country-wide Factory
Surveys.
Investigations.
15. Policy
leading mutual investment Fund needs experi¬
enced
Box No. J 13 Commercial &
^Financial Chronicle, 25 Park
Place, New York 8, N. Y.
wholesale
representatives
for
the
Coast, Southwest and Pacific Territory.
tive
Committee Work.
16. Conferences.
Representatives
opportunity for right
East
Attrac¬
men.
Please outline qualifications and record.
Box
No, KJ
10
c/o
Commercial
25 Park Place,
&
Financial
Chronicle
New York 8, N. Y.
m
THE
Thursday, January 10, 1946
CHRONICLE
COMMERCIAL & FINANCIAL
ICS
is
News
The News Behind the
I.
•'
MALLON
By PAUL
■
v
Commission
who "are really
suitable" (?) and who will "work
we
loyally" !!). ;
U
n
States and
a
power.
are
to
is
The rabbit
for Romania.
We
unfettered
"Free and
advised there, "as
possible," and the reor¬
elections" are
our
government "should"—
you, need not—but "should
ganized
■:: ; -:.-r ' 'J
:
as
soon
Paul Mallon
sur¬
render
somewhat larger
'
veto
with
mark
nations, including
give. assurances concerning the
Russia. • - -•
•:''
• - ,• •;
/ grant of freedom of the press,
I: But for the nations Russia con¬ speech, religion and association"—
quered and occupied alone, there none of which basic Atlantic
control to other
■
.
are
governing Commis¬
We do not have a veto
to be no
sions.
Bulgaria.
for
»
'
/
:
Bulgaria, both
nations now in Russian
and
In Romania
enemy
Stalin
pronounced
himself in favor of matters as they
Mr.
hands.
stand, says our
now
State Secre¬
But Mr. Byrnes
tary.
something
won
"concessions"
and
garia
Bulgaria,
by
thinks he
considers as
Russia in Bul¬
he
Romania, As regards
the agreement .says:
Page
Stocks.....
Personnel Items. *....134
Business Man's Booicslieli.......... .mi
Dalendar of New Security Flotations.164
Canadian Securities ...•
.....154
Dealer-Broker
Investment
Recom-
Literature........132
Mutual Funds ....V.'.................. 133
NSTA
Notes
...;................ V,.. 135
Our Reporter's Report
165
Our Reporter on Governments.......157
Public
pages
a
Artcraft Mfg. Com.
China,
50-50.
we
Russia
will withdraw
leaving' Chiang to
from,
"j
.
with
split
survive
Communist revolution if he can.
Iran
conquest of Northern
The
Section
.
on
$10 par
Present market 8
and
Jan. 2,
,
-
894
BOSTON 9, MASS.
Ironrite Ironer Com. & Pfd.
Bendix Helicopter
Lear Inc.
Bendix Home
Majestic Radio & Television
Appliances
specialize in all
We
Clyde Porcelain Steel
Du Mont Laboratories
•
Industrial Issues
^
Issues
Stocks and Bonds
Public Utility
TEXTILE SECURITIES
Securities with
>
.
4 5
g
Investment Trust
Wilcox & Gay
Corporation
4;^
Bank Stocks
Insurance and
Telecom
.
BS 328
2-7913
Int'I Resist. 6% Pfd. & Com.
& Pfd.
Baltimore Porcelain Steel
;
Teletype
New York
Hanover
Hubbard 6442
Globe Aircraft
Company
V;.v '.,'.4
'
;'/W rincorporated
Securities
—
1945;* arrears as of
1946 — $12.80
130 and 131.
Kobbe, Gearhart &
Foreign
Securities
not mentioned; nor
by Russia is
8% pfd.
Dividends: 20£ in 1944
Boston
parties get into the govern¬
we
Monolith Portland Midwest
136
.132
155
Trading Markets in
two
.
COMPANY
CEMENT
RALPH F. CARR & CO.
'
Three-
in to see
ment somewhere.
1-1397
Y,
specifically
\ A seat for Russia is
allow
Korea
A
.....161
Illinois
,
and
..
..,,.......
Says .'•
violations in the use
Teletme N.
Markets—Walter Whyte
Tomorrow's
HA. 2-8780
Exchange PI., N. Y. 5
...,....,.........
Securities.....
Securities Salesman's Corner., v
inspection inside nations to pro¬
of the bomb.
128
Utility Securities
Estate
Dealers Ass'n
Y. Security
Members N,
40
:T
1919
ESTABLISHED
and
Railroad Securities
Real
Wii & Co.
M. S.
Insurance
mendaitions
Amalgamated Sugar
one
Mexican Corp.
:
and
Bank
proceed "with the utmost dis¬
patch" to "exchange basic scien¬
tific information" between all na¬
tions, and even provide methods
r
Majestic Radio
U. S. Finishing
general partnership in
to
Broker-Dealer
which is to have charge is
tect against
Bendix Helicopter
70 Wall
INDEX
to
of
England Public Service
Cinema "B"
Mr.
bomb,
things,
representative of
Nation Committee
•
let
will
Stalin
Mr.
in
Byrnes says we are to give away
no secrets, but the agreement says
that the United Nations Commis¬
sion,
New
to mention
emergencies
atomic
the
will admit Rich¬
Eising to partnership as of
ard A.
Gaumont-British "A"
Co.,
the firm.
regime of control."
for
&
Alberts
A.
mitted
Commission,
even
as
to
"fundamental
changes
in
the
As
York
other exchanges,
mentioned
freedoms are
Charter
Nor does any other
power in any.
nation.
C.
:'■■■
act
can
City, members of the
Stock Exchange and
York
Street, New York City, announce
that George Alberts has been ad¬
the
isfied.
Na¬
each
tions,'
who
Government—but Mr.
says Stalin is already sat¬
Byrnes
we
New
in C. A. Alberts
vote
forgot
Byrnes
Co., 25 Broad Street,
Hirsch &
New
Geo. Alberts Partner
"only following consultation and
attainment of agreement" in
ognize that
i t e d
one
Hirsch Co. Admits Eising
today.
the
the
Great Britain will rec¬
Gov¬
ailed
o-c
that
will
United
then
loyally,
work
mission of the
s
Stalin finds men
really suitable and who
are
Mr.
:•
As soon as
Com¬
a
prohibited.
which
"■
"review."
additional leaders
conquered and
oc cu pied
alone, there is
to
be
estab¬
erning
but
Russia has
While
insist upon some
it will
There
Japan,
lished
principles "and standards,"
seems to cover everything.
Government."
garian
th e
nation
a
all
strictly
Reproduction in whole or in. part
(and Britain six against our two
*
"
Government takes on the Commission), any nation
can
veto any MacArthur act in
upon itself the responsibility of
giving friendly advice to the Bul¬ practical effect, by demanding a
agreement.For
trusted
Syndicate.
by King Features
Distributed
agreement says
Nations
is
specifically en¬
matters of "policies,
Soviet
"The
He
diced.
made
Assembly of the United Na¬
tions meeting in London Jan., 7.
the
—'
•-
preju¬
is
He
.
...
To the United
otherwise.
■
5050
50 settlement.
>•
but- the
Japan,
Divergent Views, Russia
Has in Most Instances Gained the Position She Has Striven For.
;
' WASHINGTON—Mr, Byrnes avows the Christmas season peace
he made at Moscow is ah excellent compromise of difficult divergent
\rif>ws r—a
views >—a
"';
Byrnes says General; MacArthur will have a free hand in
the Moscow Agreements
Despite Secretary Byrnes' Statement That
Is an Excellent Compromise of Difficult
'
Mr.
g:T
g:gg;\'
■
provided on that Commission, and
the Commission is to be set up by
Yugoslavia, already under Rus¬
sian controls.
Specialists in
England Unlisted
24 FEDERAL
5
"
New Eng. Market
Frederick C. Adams & Co.
New
Members Neva York Security Dealers Association
NASSAU
STREET, NEW YORK
a
Securities ~
STREET, BOSTON 10
Established In 1922
"
telephone
philadelphia
REctor 2-3600
MARKETS
bell teletype
telephone
Enterprise 0015
v
;
new york
Tele. BOston 23
Tel. HANcock 871S
1-076
Teletype
NY
1-971
inc
MARKS
SPECIALISTS ' /
Telephone
50 Broad Street
AFFILIATE: CARL
2-0050
MARKS & CO. Inc.
on the 5% $100
preferred stock of a
ARREARS
New York 4, N. Y®
•
HAnover
$67.50
Bottlers, Inc.
g Red Rock
FOREIGN SECURITIES
/
Bought—Sold—Quoted
par
CHICAGO
New
Enpiand Company
established in 1869.
Hon Rose STrsster
NEW ENGLAND
•
*
'
" -
* <'ESTABLISHED 1914.
'
Specialists in Soft Drink
S
EX TIL E
g
74 Trinity Place, New
,
,
■,
/". '
...
York 6, N. Y.
! Teletype: NY 1-375
Telephone:BOwling Green 9-7400
New
.
.
Stocks
Bef. Taxes ..., ^64.43
After Taxes .. 21.88
1944 Earn.
1944 Earn.
Earnings 9ince 1939 range
057.33
$12.82
to
taxes.
;g'ggg>
England Local Securities
a
g;g<:;
*
5*
Recent Price:
WALTER .1.
•
CONNOLLY & CO.
INCORPORATED 1923
*
24 FEDERAL
;
..
Write
Telephone Hubbard 3790
>
1
PUBLIC UTILITY
Sunshine Consolidated
:
'
Founded
<
1897
1. Net current assets
,
BONDS, PREFERRED
$13.56 per sh.
•
Pressurelube, Inc.
U. S. Radiator,
Pfd.
Reiter-Foster Oil
2. Net book value $20.63 per
4. Current yearly dividend
120
Broadway
Bell
$1.00.
about $3.
loans.
Teletype NY 1-886
f
V.
V
•'
low-priced stock to yield
AND COMMON STOCKS
—
SOLD
—
REMER, MITCNELL &
208 So. La
2 Traders
REITZEL, IMC.
1 Ass't Trader
Salle St., Chicago 4 !
SYSTEM TELETYPE
CG-989
Amos Treat & Co.
:
Mass.
WANTED
QUOTED
BELL
WESTERN UNION
TELEPRINTER
Wall St.
St., Boston 9,
Tel. CAPUol 0425
RANdolph 3736
Special Report Available Upon Request
40
148 State
REAL ESTATE
"'g .g-
BOUGHT
about. 5%.
New York 5
Telephone COrtlandt 7-0744
g?
share.
5. Average earnings 5 yrs.
No bonds.
No preferred stock.
bank
—
'
liabilities.
7, A
W. T.BONN & CO.
;"V*
3. Current assets 4*35 times current
No
INDUSTRIAL
LUMBER & TIMBER
Works
San-Nap-Pak
—
''g^H
Securities
gg BANK —: INSURANCE gg;(:;;gggg gO
Engineering
call for Analysis
M.C.P.
Specializing in Unlisted
MASS.
Bell System Teletype BS-128
Northern
or
g
STREET, BOSTON 10,
from
share after
:V-;7
New York 5, N. Y.
BOwling Green 9-4613
"WUX**.
^
Hill, Thompson & Co., Inc.
Markets and
120
Situations for Dealers
Broadway, New York 5
Tel. REctor 2-2020
Tele. NY 1-2660
@FedFRASER