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Edition
ESTABLISHED
0^:
In 2 Sections-Section
O
1
ommetcuLl an
Financial
Reg.
Volume
161
U. *S.
Office
Pat.
1
Number 4352
New York, N.
A Substitute
Of Moral Responsibility
MilitaryTraining
a
Copy
Reconversion Problems
-v.by- emil schram* v
■; - j!President of the New York Stock Exchange
:
Cents
60
Inflation and Post-War
Business Men Not Devoid
For Universal
Price
Y., Thursday, January 18, 1945
By dr. LEWIS II. HANEY*
Professor of Economics, New York University
/
Pleading for Confidence and National Unity, Mr. Schram Denounces
Economist Asserts That Inflation Is Growing Steadily Due Chiefly to
the Cynical Theory of Certain Economists that Business Men Seek
Idle Funds Which Cannot Be Spent at the Current Price Levels.
Says
Merchants
National
Bank
and
Selfish Interests and Lack Moral Leadership and Responsibility.
Ex¬
It Is Analogous to Reason Given for Cancellation of Unused Ration
f Trust Company of Syracuse, N. Y.,
presses Confidence That Whatever Changes May Be Required in Convert¬
I and a member
>;«
; ; .
1
ing From War to Peace Will Be Made.
Discussing the Responsibility Coupons, Namely, There Were Too Many Outstanding in Relation to
of
the
New
Food Supplies.
Attacks the Policy of Lowering Bank Reserve Require¬
of Management, of Security-Holders, and of the Financial Community,
York State
ments as Permitting Greater Inflation Through Further Expansion of
J u d i c i a 1
He Calls Attention to the New York Stock Exchange's Important Posi¬
Council,
States Commodity Prices Should, Be Permitted to
tion in Maintaining Stability and Confidence Due to Its Use by More Deposit Currency.
w h i c h
was
Rise and Sees Paper Dollar Already Depreciated. '--I
People Than any Other Financial Institution. Open Markets Essential.
•J submitted
In
v
•
J
;
i.
v
•
•
%
.
*„
w-
.
••
memorandum prepared by
;' Crandall Melvin, President of the
a
,
•
•
I
Na-
the
to
.( merce,
other
;
stitute is pro-
for
a
system of uni-
of
versal
store
posed
Melvin
Crandall
its stead, proposes
technical traning un¬
Federal and State jurisdic¬
The plan as stated in outline
in
and
systematic
der
tion.
form is
as
follows:
Gerald M.
make of
guess
that
most
of
listed
for
you
Y
o r
k
Stock
vi¬
are
change
9,
/
Stock
York
New
<
EraiI Schram
erations of the
the
not
was
Exchange
to
answer
'
nation is
s.
Index
of
Features
Regular
288.
page
,
maintain
to
confidence,
♦Remarks by
Mr. Schram at a
meeting of the Eco¬
Luncheon
Club of Detroit,
Mich., January 15, 1945.
Interstate
Circular
on
to
&
n
(Continued
Co.
on
page
Detroit,
t
Buy War Bonds
Request
the
o m e
to
according
rs'
day
owed
broker
his
c o n
client
d i t i
market
taxes
of
part
the excerpts as
be
the
but
and,
in
takes
taken
Gerald
M.
Loeb
during
the
a
tion
Successors
HIRSCH,
from
&
and
other
London
-
Chicago
■'**'/■
Established 1927
1
:
64 Wall Street, New York
Prospectus
- r
5
PHILADELPHIA
BOSTON
Troy
Buffalo
Williamsport
Albany
Pittsburgh
Syracuse
Dallas
HUGH
/
•
-
rails
BROKERS
on
LONG
W.
Y
Request
and
NEW YORK
■
'
COMPANY*
INCORPORATED
WALL STREET
48
or
-
>
634 SO. SPRING ST.
;
LOS ANGELES 14
5
10
be
used
within
any
can
usual
period
at the
current
(And, by" the
much of
"liquidity"
way,
of
these
called
assets,
to
so-
liquid
is
the
due
Lewis H. Haney
fact
that they are
"water," and cannot
anything sold.)
be turned into
*
address by Dr.
An
fore
the 34th
Annual
Haney be¬
Conference
of the National Retail Dry
Association,
New York
Hotel
Goods
Pennsylvania,
City, Jan. 9, 1945.
(Continued
atten¬
3,
after
to
on
page
280)
State and
267)
on page
Brokerage
•>
Bonds
Bond Department
-
Hardy & Co.
Y.
Members
New
York Curb
30 Broad St.
Tel.
Exchange
New York 4
DIgby 4-7800
New York 5
.
REctor
2-3600
Broadway, New York 5, M". Y.
.Telephone:
REctor 2-7400
Teletype N. Y. 1-676
Philadelphia, Telephone:
Bell
Enterprise 6015
OF
THE
CITY
OF NEW YORK
Tele. NY 1-733
Scranton
Spring
Brook Water Co.
$6
Dealt in
Members New York Stock Exchange
120
Tel.
NATIONAL BANK
on
Preferred
N.
Y. Curb
[
Exchange
HART SMITH & CO.
Security Dealers Ass'n
45 Nassau Street
THE CHASE
Corp.
Reynolds & Co.
INCORPORATED
N.
\
Members New York Stock Exchange
International
Detrola
Kobbe, Gearhart & Co.
Members
than
—
cases,
real
well. This
Manufacturing Co.
Industrials
EXCHANGE
TELEPHONE-RECTOR 2-6300
idle
funds
as
Electrolux
14 WALL ST.. NEW YORK 5, N. Y.
means
on
Philip Carey
electronics
BOND
MEMBERS NEW YORK STOCK
assets—which
Service
INVESTMENT SECURITIES
•
Teletype NY 1-210
BULL, HOLDEN & C9
liquid
R.H. Johnson & Co.
Rep.
Cleveland
posted
and Dealers
CO.
25 Broad St., New York 4, N. Y.
HAnovcr 2-OfiOO
so-
more
called
for Banks, Brokers
Exchanges
Geneva
are
Municipal
VICTORY
Members Neio York Stack Exchange
'
be
monopolizing
before
Bond
to
LILIENTHAL
contacts
many
(Continued
meeting.
NEW YORK STOCKS, INC.
There
flation.
great deal of time; with
market
for
Hirsch & Co.
must
estate and insurance
possible
were
to
and
simply through; servicing them is
passing.
The Customers' Broker
must
not only
study the stock
ons.
print
only
social
his
on
clients,
Mr. Loeb.
"The
broker
who
gets
to
the
of
orders
under modern
down
274)
he
must work hard
to
justify his
new
and added responsibilities,"
obligation the
e u s
his
of
funds
the
Co.,
stressed
is be¬
vestment advisor and a trustee for
Hut-
F.
Customers' Broker
coming morS1 and more of an in¬
M.
light¬
the
"The
Jan.
be
to
ened— by in¬
level of prices.
«»-
partner
-
E.
We
nomic
Aircraft & Eng.
Loeb,
on
■
as
Ex¬
on
Gerald
of
military training
management and to stockholders;
for Japan,
you are also, vitally interested in
Germany or France.
This is not the
obligations
of stockholders
said in defense of our own abysmal and
management to each, other.
i lack of preparation, but to point
Of course, the supreme obliga¬
(Continued on page 270)
tion which today faces the whole
that compulsory
;■
Weil
tion of Customers' Brokers in the Governor's Room
change.
You
as
Speaking extemporaneously and informally before the Associa¬
of the New York
Ex¬
Stock
High Grade
Manville and Radio Pick of List.
the
on
Opportunities
Speculative Issues. Johns-
of Stock Prices Will Rise This Year With
securities
New 1
Responsibilities of Cus¬
Expresses View That General Level
fair
a
own
Loeb Outlines the
tomers' Brokers and
ed in the obli-
emphasized again
be
should
;gS|DoJntl945?|:§ii
drive the
tally interest¬
Introduction
It
What Will the Market
am
But it is
for
The burden of
debt will have
automo bile.
"glorified
physical train■
ing program" of one year's dura¬
tion,
going to become inflated; we are inflated.
There is
by the nation than can be paid in any ordinary-way.
not
are
debt owing
*
not all of
same
the
project
more
same
I
—
you
The plan
aside
We
audience, and consider our subject, it occurs to
which I represent may have more customers
all
sure
compulsory
military train¬
sets
business
patro¬
you
nize the
and
ing.
this
over
busi¬
Not
ness.
(
;
the
here than any
sub-
a
that
me
Com-
of
ber
As I look
Cham¬
tional
Teletype
NY
1-635
Members
New
York
52 WILLIAM
Security
Dealers
ST., N. Y. 5
Bell
New York
Teletype NY
Assn.
HAnover 2-0980
1-395
Montreal'
Toronto
IRA HAUPT&CO.
Members of
Principal Exchanges
111 Broadway,
REctor 2-3100
N. Y. S
teletype NY 1-1920
Trading Markets in:
Z=
We Maintain Active
Federal Screw
Markets in U. S, FUNDS for
BROWN COMPANY, Common &
Rights
Preferred
,
KING & KING
' : Bought—Sold—Quoted
;
NORANDA MINES "
115
HA 2-2772
PI., N.Y. 5
40 Exchange
Exchange and Other Principal Exchanges
•
*
YORK
BROADWAY, NEW
120
Tel.
Members New York Stock Exchange
;
25 Broad
The Bretton Woods Plan
Pfd.
Baltimore Stock Exchange
Broadway, N. Y. S
WOrth 2-4230
Y. 1-1227
Teletype N.
with
Board of
Community Gas & Power
members of the
Stock Ex¬
Building,
Trade
Co.,
&
Rice
Daniel.F.
University
New York and Chicago
of
Fostering Stability, Does the Opposite, by Allowing Flexible PaperMoney Standards to Many Nations, While a Few Adhere to a Rigid
Standard.
Says Plan Threatens to Debase the American Dollar and
Therefore Should Be Rejected.
Outlines a Nine Point Program for an
120
Bell
Eastern Corp.
A.
Alleges That Bretton Woods Plan, Instead
Instability.
Rehabilitation of Our Monetary
International Gold Standard and Urges
System
"International
Power Securities
on a
Gold Basis.
6^2 8 ancl
I shall first take a
would happen
dollar".
theme tonight is the American
T My
Then I shall try to forecast what
glance at its history.
to
it
if
the
the past
he
Co.,
65
Co.
Stabilizat i
3/'6s, 1956
Traded
on
N,
nally
Bell
System
NY
Teletype
what
o
a s
our
policy
Byrndun Corporation
f ; -v; v:',v
Common
f
Conv.
Prior
Indiana
b
Preferred
Yet
in
Service
I
am
a
a
E.
W.
Kemmerer
5
y3
s,
D
future of the American
H. G. BRUNS & CO.
20 Pine
Teletype NY
dollar will
apply in principle to the monetary
units of other advanced countries.
Street, New York 5
The American Dollar
1-1843
Prior to
The
Aetna Standard
Engineering
power
clause
in
to coin money
Corp.
^TeerveaniCompan^
Members
N.
Wall St.,
Bell
Dealers Assn.
Y. Security
N. Y. 5
Teletypes—NY
it
1127
*An
on
'
■
"0.
..
Industrial
have
been
elected
■
■
■
on
-
«
■
•
request
f
Active Trading Market
F. H. Holler & Co., Inc.
-...
to
It
years,.,
c o n
Cooper,
Edward
has
appointed
been
Members
Dealers Ass'n.
Security
Y.
N.
Broadway, New York 6, N. Y.
Ill
NY 1-1026 ?
BArclay 7-0570
an
Assistant Cashier.
filled with
weight of gold and a fixed
much
came
Mason Bogen
I
home
C.
F.
home proud as hell-of our
came
and
soldiers
proud
organization.
address
by
Professor
of our;-Army
Through it all ran
a
vein of humor.
I look back with
address
by Mr. > Crawford
given at the Institute*
Money and the Law, New
York
*An
before the New York State Cham¬
ber
of Commerce, Jan.
4, 1945./:
(Continued on page 284) n
i
Heads
H. Hentz & Co.
Crawford
sober.
deeply
I
Ludlow
with
disillu¬
sionment.
/.
fc
Valve Preferred
Fonda, Johnstown
Dept.
&
Co./60 Beaver. St.,
New York City., members of the
New/York Stock Exchange and
other
leading
exchanges,
an¬
nounce that'Mason Bogen has be¬
come
associated with them.
Mr*
Gloversville
All
Issues
H. Hentz &
be in
will
Bogen
Institutional
Bond
Randall Company
Department.
Bogen
A and B
George R. Cooley & Co.
charge of the
;V7V7 INC.
.
Established
■
formerly with
Goodbody
&
Co.
and
Merrill
Lynch, Pierce, Fenner & Beane.
Mr.
was
Wellman
Segal
STROMBERG-
Lock & Hardware
CARLSON
52
William
St.,
WHitehall 4-3990
New
1924
York 5, N.
Y.
Teletype NY 1-2419
.
Preferred
/
.
Members
WHitehall 4-«7«
Teleytpe NY 1-600
I
I
Members New York Stock Exchange
25 Broad St., New
HAnover 2-0600
York 4, N. Y.
Tele. NY 1-210
on
SECURITIES
Request
74
N.
Y.
Security Dealers Ass'n
HA 2-2400
Teletype NY 1-376-377
Members
Wires
Detroit
-
to
Buffalo
Pittsburgh
-
-
Cleveland
St. Louis*
Co.
Bonds & Stocks
BOUGHT—SOLD—QUOTED
Cleveland Stock Exchange
Commerce
Union
Bldg., Cleveland
14
Telephone MAin 8500
Trinity Place, N. Y. 6
Private
'
INCORPORATED
.
Troster,Currie & Summers
G. A. Sax ton & Co., Inc.
Circular
WM. J. MERICKA 6-
Bought—Sold—Quoted
Simons, Linburn & Co.
WATER WORKS
Engineering
Company
STOCKS & BONDS
j
:
f ined
but
war
Analysis
fff '
William
Assistant
sector.
the
(Continued on page 278)
'
I
-.situation
'V 'L,, •'
j Public Utility f
ST., N. Y. 5
•
heretofore
Philadelphia Na¬
Bank,
G.
*
;
interesting low priced
An
of the
Vice-Presidents.
Railroad
| 7# PINE
1-1140
Common Slock
*
who has
been
associated with the bank
and bankers division for several
exclusive
and regulate
City, January 16, 1945.
i
and
Henry
Hall,
tional
in
home
Kemmerer
Trading Markets in
I.
Cashiers
Hanover 2-4850
1-1126
NEW YORK 5
HAnover 2-9470
/
ST.
thrills. I came
fixed
■ ;
T.
an
be
might
metallic money standard.
of the Civil
A.
Edwin
going
than
-
Elects Vice Presidents
of
idea
is
greenback-standard and from
a
few brief and slight lapses in
times
of
great emergency,
the
standard American dollar both de
facto and de jure has always been
a full-weight gold or silver dollar.
For two generations of American
bimetallism the dollar was both a
Participating Certificates
?:-V: "••••' .V V
CROSS CO.
Phila. National Bank
got a
Aside from the period
Pfd.
WALL
Teletype NY
abroad
•--f
,
get a
this
we
better
was
a
••
•
York Curb Exchange
New
Members
64
home full of it. 1 It wa«
came
short
a
Constitution
our
War
37
.
I
-
•/.•
.
Perhaps,
time
one
plated
Southeastern
at
war.
the value thereof clearly contem¬
3 Zz s, '47
Steam Shovel,
look
.
officer who
giving to Congress the
Galveston & Houston
Marion
to
and
in
War
rtment
p a
on
World War I
Boston Terminal,
tne
e
what
3-1223
Telephone: WHitehall
Bell
Most of
What is said, therefore, concerning
the Bretton Woods Plan and the
Series 12
•••**/"'•
Frank C.Masterson & Co.
Censor¬
It/was a wonderful opportunity to be taken
wonderful trip.
by
pro¬
nounced internationalist.
Prudence Co.
want to talk about this trip.
I
the
field of money
Preferred
S.
the American Public.
Communistic.
Says the French "Underground" Is Largely
of
American
the
Warns Against Over-Optimism and Assails the
Hungry."
\.:Y.
V
W.
York Curb Exchange
New
on
ship Which Withholds the .True Situation From
the
from
dollar,
1952
National
e
standpoint
Limestone
6s,
my
remarks will
Douglas Shoe
L.
W.
AVZS
in
•Dealt
Toward Americans Is Not
Although
1
Broadway-Trinity
Occupation, Are Not as Bad as Painted and That thl People's Attitude
Highly Favorable and That "Germany Is Not
should
be.
/
Common
Xitl
Manufacturers
Particularly in the Matter of Engineering and Supplies. Contends Thai
Economic and Food Conditions in France, as a Result of the German
Amer¬
ican monetary
1-1548
of the National Association of
a Recent Trip to France and the Western Front, Mr. Crawford
Highly the Organization for Conducting Military Operations^
Praises
future
COrtlandt 7-4070
Telephone
Former President
Describing
t
New York S
31 Nassau Street
brief
judgment
York Curb Exchange
New
in
Preferreds
&
Indiana Gas & Chemical
By FREDERICK C; CRAWFORD*
outline my
Vanderhoef & Robinson
Members
Fi¬
shall
adopted.
Exchange
Y. Curb
I
state
•
Debentures
5 '/z %
&
Common
"Report from the War Front" |
o n
(Va.j
Central States Elec.
*5%
Plan should be
Teletype NY 1-1919
1 ''
»
Bretton Woods
Savoy Plaza
'
oi
predecessor
&
Exchange
WHitehall 4-8120
Broadway
Bell System
and Edward B.
;
Barney
Smith,
Memoers New York Curb
with Salomon
was
&; Hutzler
&
Members New York Stock Exchange
Co4
Chicago manager for Ernst &
Smith
v
Edward A. Purcell & Co.
Clement,;\Curtis & Co., ' and: was
Bros.
1
"
V.
American Gas & Power
with the U. S.
instructor;
Pr'oi
he was manager of the
trading
department f. for
bond
Pfd.
Plain,
7s
6s
radio
Navy as
In
-
-
//v.f:^;i
■
has recently beenthereto
N. E. Public Service
/
That Monetary Stability Existed Under the changes, as manager of the bond
Mr. Collins
International Gold Standard Before 1914 Lays Its Failure Thereafter to trading department.
Economic
branch offices
our
; j.
ILL.—Timothy
Professor Kemmerer Asserting
Miltlicll&Coiniiaiiij
Members
Chronicle)
(Special to The Financial
CHICAGO,
National Committee on Monetary Policy
President, Economists'
Direct wires to
Collins has become associated
International Finance, Princeton
Professor Emeritus of
Preferred
'
/
KEMMERER*
By EDWIN WALTER
Weighing & Vending
Sirian Lamp,
NY 1-1557
La.-Birmingham,A!a.
Daniel F. Rice & Ce,
Preferred
Mayflower Hotel, Common
Common &
St., New York 4, N. Y.
New Orleans,
Timothy Collins With
The American Dollar and
Kearney & Trecker
Peerless
Request
on
HAnover 2-0700
Elk Horn Coal
Common &
Sold,—- Quoted
—
Analysis
2-7815
REctor
TELETYPE NY 1-423
BELL
Inc.
Steiner,Rouse&Co
Curb Exchange
York
New
NEW YORK 6, N. Y..
Teletype NY 1-672
BROADWAY
Telephone BArclay 7-0100
Bought
Exchange
Stock
York
New
Members N: Y. Stock
Dealers Ass'n
Securities Dealers, Inc
v;v
Members
Members
Security
of
*P. R. Mallory & Co.;
fVfcPONNELL&fO.
Goodbody & Co.
Established 1920
York
•'
,
MINNESOTA & ONTARIO PAPER
,
Ass'n
Rockwood Co.
CYANAMID
5% Preference
American Phenolic
New
/;f Avondale Mills
;
AMERICAN
BULOLO GOLD DREDGING
Franklin Stores
Nat'l
1945
——
Buffalo Bolt
Common &
JanuSy*l8,
Thursday,
FINANCIAL CHRONICLE
THE COMMERCIAL &
258
29
-
Direct
Broadway, New
WHitehall 4-3640
Private
Wire to
.
.
n
York 6
./
Cleveland
c..i
ZDO/IU*iP
MEMBERS NEW
One
Wall
}
YORK STOCK
Street, New
EXCHANGE
York 5. N. Y.
Volume
161
THE COMMERCIAL
Number 4352
*
be
afford
can
without
FINANCIAL
to
%
BULLETIN-—
CHRONICLE
William B. Dana Company "
Publishers
The;
.
/
CONFIDENT YEAR
which
sketches
■
-
interested in
offerings of
llCHTfflSTflll
"
'
,
REctor2-9570. ta 9576
; •
.
-
High Grade
-
AND COMPANY
,
-
Public
*
"
■
:
TO HAVE
Utility and Industrial
AND HAVE NOT
PREFERRED STOCKS
>
Herbert D. Seibert,
the out¬
are
-~--
York 8 J
23 Park, Place, New
;
We
U. S. Patent Office
Reg.
latest
our
and
COMMERCIAL
The
No dealer
259
& FINANCIAL CHRONICLE
We
don't
.
Have
look for 8 vital industries
'■<:
|
Additional
;
copies
able while
January
Thursday,
for
sales staff avail-
your
William Dana Seibert. President
*,
<
a
least
the
is
securities
to
have
99
Members New York Stock Exchange
;
Not"
picture
of "To
who
one
that
pay
no
the
cash.
Obsolete Securities Dept.
;
Teletype NY 1-5
Telephone HAnover 2-4300
week
Thursday
every
on
what
conception
our
Have
income and have little market! Turn
them
over
to
us,
and
you'll
at
25 Broad Street, New York
:¥/-;
1945
18,
Published twice
supply lasts.
•-
and
holds
||8 Spencer Trask & Co.
/•:>
William D. Riggs, Business Manager.
and reviews 34 securities.
know
but
means,
Editor and, Publisher
WALL
STREET,
NEW YORK
Telephone: WHitehall 4-6551
.
~
(general news and advertising issue)
STRAUSS BROS.
Members
New
York
Security
32
Broadway
NEW YORK 4
r
and every
DIgby 4-8G40
-
{complete statistical issue—market quo¬
tation
records,
corporation,-'' banking)
clearings, state and city news, etc.)
135 S. La Salle St.,
Chicago 3, 111. (Telephone: State 0613);
I Drapers' Gardens, London, E. C„ Eng¬
land, c/o Edwards & Smith.
Other
Teletype CG 129
Copyright
Estate
Department
ruary
York,
Specializes in
William
for quotes
40 Wall
York
St., N.Y. 5
Bell
Stock
Exchange
per
States, and
Dominion
year;
l^ubllpatjoris^
v
:
Eank and Quotation Record—Mth. $20 yr.
Monthly Earnings Record—Mth...$20yr.
Hewburger, Loeb & Co.
New
United
South ana
Spain,
Mexico
and
year;
Great Britain.
Continental Europe (except Spain), Asia,
Australia and Africa, $31.00 per year.
$27.50
Central
America,
Cuba,
$29.50 per
Canada,
Other
Members
Company
Dana
.
Subscriptions. In
CERTIFICATES
I
B.
Possessions, $26.00 per year; in
of
vs
by
25, 1942, at the post office at New
N. Y„ under the Act of March
3, 1879.
TITLE COMPANY
Call
1944
NOTE—-On account of the fluctuations
CERTIFICATES
BOUGHT
Professor of Banking, Columbia University
.
Complete
Clarity, Singleness of Purpose and Internal Consistency, Points Out That
the Quotas in the Fund Are Based on Political Considerations Rather
Than on Economic Need, Credit Worthiness or Capacity for Repayment.;
Asserts Fund Is Not Tailored to the Needs of Borrowing Nations and
Regarding the Relationship of Its Stabili-i
zation Provisions to the Gold Standard, and to Other Obscurities Which
Lead to the Conclusion That Fund Will Not Promote International Col¬
laboration.
Commends Plan of the International Bank but Stresses
Calls Attention to Controversy
I
Statistical
Information
39
HAnover 2-8970
a
exchange, remittances for
foreign subscriptions and advertisements
on
must be made in New York funds.
Broadway
New York 6, N. Y.
Factor in Its Success. As
Seven Point Program, Based
Stabilization of Key Currencies, the Checking of Internal Inflation
Importance of Sound Management as
Teletype NY 1-1203
Du Mont Laboratories
and the Removal of International Trade Barriers.:
"
endorsement$
■j:-.:.r"'"
Emerson Radio
Majestic Radio
of
of
Agreement
Interna¬
an
tional
Mone¬
tary Fund and
Interna¬
a n
Economist
Analyzes the Economic Functions of Floor Traders on Ex¬
changes and Presents the Views of Prominent Financial Writers and
as a
Bank
tional
for
;—
Stromberg-Carlson
;
and
Development!
Holds Combination of the Trader-Broker Function, Under
The
endorse¬
Legal and Stock Exchange Restrictions, Is Not Detrimental to the
ment
Public, and That the Investigation by the Trading and Exchange Division
SEC, Claiming That the Floor Trader Engenders Excessive Trad¬
ing and Excessive Price Fluctuations, Was Statistically Inadequate and
ed
accord¬
the£e arti¬
cles of agree¬
of the
ited
not
B.
H.
New
Ill
bind
the
atory:
York
j
,
-
,,
-
.
.
Teletype,
Wire
to
NY
Los
1-2480
Angeles
Bartgis Bros.
Billings & Spencer
Federal Screw Works
Hooker Electro-Chemical
-
Winters &
Bought
HfBioo
Members
New
Crampton
—
&
Bell System
.
Teletype NY 1-84
SECURITIES
:
Members New York Security Dealers Asm
25
transactions of specialists and
reasonably necessary to permit
them to perform their respective functions," and it :would
not interfere with "any transaction to offset a transaction
made in error, if such error was made in good faith."
A drastic curtailment of marketing functions which
PANAMA COCA-COLA
Dividend
-
;
j
'
DIVIDENDS:
1944
—
1943
$4.50
1942
$3.65
v
an
integral part of the marketing .machinery
important exchanges, and the prohibition of activities
have been pronounced as essential to price stability and
Circular
Analyses available
implications or proper study of its
probable disastrous effects.
\
.
':
:
*
(Continued on page 282)
-
for Dealers only
request
HOIT. R0SE S TRSSTER
orderly marketing processes, is thus proposed,-,without
due consideration of its
on
Established 1914
C. E. Unterberg &
Members N.
61
/
74 Trinity Place, New York 6, N. Y.
Telephone: BOwlingr Green 9-7400
& Trust Co.
National Radiator Co.
Approximate selling price—30
all
I
Public National Bank
paid January 15, 1945—$.75'*:
have formed
to
NY 1-956
Private Wire to Boston
•
„
^
that
Broad St., New York 4, N. Y.
WHitehall 3-0272—Teletype
than the usual floor broker's discre¬
The rule would exempt
odd-lot dealers "to the extent
on
:;.V:
DUNNE & CO.
-
.
more
Ass'n.
COrtlandt 7-6190
SUGMi
.
Janareli
tion."
^
[o.m
York Security Dealers
170 Broadway
.
.
;
Sold
..
.
,
.
Laclede-Christy Clay Prod.
.
>
Asm.
T
my
did not imply
struggle; when all efforts are required to
full acceptance of all provisions
rnaintain an orderly home front as well as
of either plan- Whether the Bret(p. 71, col. 1): 'One of these laws
maximum military action; when unity and 1
ton ..Woods
agreements will be is the Silver Purchase Act of June
cooperation of government and business is ;
adopted generally will doubtless 19, 1934, which not only author¬
depend upon action by the United izes but directs the Secretary of
required to maintain the system of free en¬
states. The reason is the obvious the Treasury to buy all silver
terprise and preserve our way of life, a new
one that the funds loaned or pro¬
presented to him, at a price which
"prohibition" (English for "verboten") is to
vided for.under either plan will
he
shall
designate,
It
be proclaimed by the Securities and Ex¬
consist largely of dollars.
should read: 'One of these laws is
1- Neither Agreement is to come the Silver Purchase Act of June
change Commission. It threatens not only
into forqe .until it has been signed 19, 1934,- which not only author¬
to: disrupt continuous and orderly market¬
by nations S having 65% of the izes but directs the Secretary to:
ing of securities but to revolutionize mar¬
total quotas in the Fund and 65%
buy silver at a price which he
keting practices that have prevailed foj*
pf the capital in the Bank.; The shall designate, '.
.' The reseveral centuries-: not only in stocky,and
time limit for such assent is Dec. printswill carry the corrected
sentence.—Walter E. Spahr."
;
31, 1945.
bond trading but in other fields as wellIt is proposed by the Securities and.
| The fact that the United States
must decide before the end of this
Exchange Commission, in a release issued
year whether, it will become a Eckstein Now Is With
A. M. Sakolskl
January 16, 1945, that its Trading and Ex¬
member of the International Mon¬
change Division adopt a rule "which would prohibit floor etary Fund and the International Q'GoRitei! §
trading in stocks on the New York Stock Exchange and the Bank. means that Congressional
J. Francis
Eckstein, formerly
New York Curb Exchange."
The proposed rule provides ['■' ,::An address by Prof. Beckhart with .Adams & Peck, has become
associated with O'Connell & Jathat no member of these exchanges, while on the floor of the before the Institute on
Money and
nareli, 120 Broadway, New York
exchange or in its immediate vicinity "shall effect any trans¬ the Law, New York City, Jan. 15,
City, as Manager of the bond de¬
w'
,. .
action in a stock traded on the exchange for an account in 1945.
v v
(Conitnued on page 281)
partment.
' •
'
which he has an interest or pursuant to any order in which
Dealers
REctor 2-5288
System
Private
,
article, Tt's Your Money
That's Involved,' in the Chronicle'
of Jan. 4, 1945, a sentence calls
for correction.
The original read
Security
Broadway, New York 6, N.Y.
Bell
Economics, New York University,
and Secretary of Economists' Na¬
tional Committee
on
Monetary
% "In
Sold
Members
CORRECTION
following statement from
Dr. Walter E. Spahr, Professor of
The
did
char¬
nations repre¬
sented
and
Beckhart
A
•
It
in
acter.
j 1 Again the SEC threatens to destroy orderly security
—
Policy, with reference to an error
in the original text of an article
which appeared in a recent issue
of the "Chronicle," is self-explan¬
ment was lim¬
Unfair.
Bought
"It's Yon Money
That's Involved" J.F.Reilly&Co.
Recon¬
struction
Price Stabilizer and Thus Benefits
While the nation is engaged in a life and death
:
to the Articles
By A. M. SAKOLSKI, City College
be is vested with
CO!
Members New York Security Dealers A**n.
Alternative to the Fund, He Presents a
in the rate of
Proposed Floor
Trading Prohibition
Economists That the Trader Acts
QUOTED
-
L. J. G0LDWATER &
}
Six months ago, representatives of 43 nations and a French dele¬
gation; meeting at Bretton Woods, New Hampshire, gave general
j
SOLD
-
/,
Banking Expert, Holding That the International Monetary Fund Lacks
|
The
trading.
TITLE COMPANY
By BENJAMIN HAGGOTT BECKHART*
V
['
WHitehall 4-6330
Teletype NY 1-2033
the Public.
Proposals
Versus Alternatives
Offices:
Reentered as second-class matter Feb¬
Securities
The Bretton Woods
Harrison 2075
,
Real
Monday
Ass'n
Board of Trade Bldg.
CHICAGO 4
Teletype NY 1-832, 834
Our
Dealers
Teletype: NY 1-375
Y,
Co.
Security Dealers Ass'n
Broadway, New York 6, N. Y.
Telephone BOwling Green 9-356S
Teletype NY 1-1666
Thursday, January 18, 1945
FINANCIAL CHRONICLE
THE COMMERCIAL &
260
BOSTON, MASS.
Emerson Radio & Phono.
INDIANA GAS & CHEMICAL
American Optical
COMMON
Bought
—
;
Bird & Son
Sold
"*
!• J
'
Wickwire. Spencer Steel
p'-i"''• ' 'f;'
■.
.
Colonial Stores Pfd. & Com.
Analysis Available
.;. i_;.
y t,
..; j
.•
Foundation Co.
Christiana Securities Common
v
Corp.
Gleaner Harvester Corp.
Harris, Seyboldt & Potter
First of New
Maine, Pfds.
Boston &
Laurence Portland Cement
York Corporation
Underwriters and Distributors of
Investment Securities
70 PINE
Douglas Shoe, Com. & PfdL*
Eastern Corporation
NEW YORK
STREET
Established 190S
5
Radio
West Michigan
|
Franklin Stores
Girdler
General Machinery
Corporation Stock
Hartford-Empire*
Bought—Sold—Quoted
Maine Central Pfd.*
'•
•
V
•
' '.
^
BOSTON
Capitol
Philip Carey
Purolator*
INCORPORATED
Corporation
Title Guarantee & Trust
Sheraton
Broadway
1-714
Long Distance 238-9
LIFE BLDG.
Bird
Blair
&
Business
Cement
.
f-:iV*y».;v;
per
share
per
"•
.
-
< ,p-
r
V
.
\
& Welding
Dairies
Foremost
Harvester
Gleaner
Industries*
American
Great
„
Co.
Machine
Federal
Hotel Waldorf Astoria
Aircraft, New
Magazine Repeating Razor
Liberty
Herrington
Marmon
Distilling
Merchants
Mokan
;
-
I have
Moxie*
the
Oxford
Paper
—
Punta Alegre Sugar
Remington Arms
^
Riley Stoker*
^
.
N.
■
Y.
Telephone—WHitehall 3-7253
• "7
v.- ;>?
,
'}'•/
-V
V>'•
-
•-
We will buy
LERNER & CO.
10
POST
OFFICE
BOSTON
Tel.
SQUARE
MASS.
9,
HUB 1990
American
v,
Public Service
Teletype BS 69
been asked to
period follow¬
ing
the Eu-
Pump
United
DrillX&LAfP
United
StoVe
Whiting
Corp.
forecasts,
'SP"-"1
:
Mills*
Alabama
war.
ropean
To make such
Swasay
\
one
•
Aspinook
Corp.
Berkshire Fine Spinning
Botany Worsted, Com. & Pfd.
Consolidated Textile
H. & B. Amer. Machine, Pfd.*
shall
I
devote
the early part
of my
IMerrimac Mills
Palmer Bros.
a
talk to
discussion of
the relation of
to
sales
pur-
chasing
&
Gas
Amer.
Conn.
Light
Elec.
&
&
Derby Gas &
Power
Dr. Charles F< Roos
purchasing
Com.
Indiana Gas & Chemical
Southern
Com.
Util.
Mass. Power & Lt. $2
Elec.
Portland
rience there is
Pfd.
Prior
Puget Sound Pr. & Lt.
Queensboro Gas & Elec. Pfd.
Replublic Natural Gas
Southeastern Corp.
Southwest
Mont
The
Lab.
"A"*
'
^
,
#
I
INSURANCE STOCKS
Request
i
m
with
iffetailers
REctor 2-8700
women's
accessories
in
1943
their
of
so
apparel
they
Randolph 3002
to
relative
women
On
the
were
income,
based
rationing.
sales
in
on
As
1944
matter
a
would
rP\P:'U:'-'.
have
income
billion
should
drop to
per
year,
sales of
goods items would
drop from their present level of
NY
fcgj
Wires to Chicago and Phila.
'PHONES
Buff. 6024
Bos. 2W
*An address by Dr. Roos
been
average
line
of
231 So. La Salle St.
men
trade,
sales
of
have
we
National Retail
Dry Goods Asso¬
considered
■
Rights
-
Rights
Atlantic City 6's
Phila. Transportation
mnCo.L
J Fred.W. FairmanCo
Members
Chicago
»
.
V
Stock
-
1955
AH issues
Board
o1
Bankers Securities Corp.
1510 CHESTNUT ST.,
Trade
7
N. Y. Phone
Whitehall 4-1234
Bell
Interstate Aircraft
'
Garrett
PHILADELPHIA
Phila. Phone
Rittenhouse 8500
Trading Markets
Pfd.
F. J. MORRISSEY & CO.
Exchange
Chicago
Firm
i
consumers' stocks are low
despite record purchases.
The
reason is that high income accom¬
panied by the activity which gen¬
erates
high income, results in
greater wear and tear of: semidurable goods and, hence, higher:
demand.. An active working pop-;
ulation simply uses more shoes
and other clothing and the great
variety of semi-durable goods sold
in department stores.
Moreover, the
raised
income
has greatly
also changed
war
and
its distribution, and this has meant
the
introduction
(Continued
of
on
new
page
consum-
261)
>
First Camden Nat. Bk. & Tr. Co.
Boston Phorte
Enterprise 2050
System Teletype PH 279
.
ST. LOUIS
Corporation
Magnavox Common^
areas,
'
Jan. 11, 1945.
Ritz Carlton,
-
Phila. & Garrettford St. Ry. 5s,
I SINCE 1908 HBBHBSHIS
stores
Consumers' Stocks Low ;
Natl.Bk.&Tr.Co.
Even in the non-durable goods
ciation, Hotel Pennsylvania, New
York City,
1501
relationship
for the armed forces.
To round out the picture of re¬
tail
•.
ifearborn
i
Teletype CG 257
to income because of the drafting
of
Teletype PH 73
Nat. Bk. of Gtm. & Tr. Co.
CHICAGO 4
larger without ration¬
ing.
Sales of men's clothing and
furnishings for 1941-44 are below
the
OFFICE
Bldg. Phila. 2 i
:
•
COMSTOCK & CO.
about 25%
before
the 34th Annual Conference of the
:'y£;
Corn Exchange
due to
of fact,
^
Byllesby & Companyl
PHILADELPHIA
Phone Rittenhouse 3717
below de¬
"
available on request
now
hand; shoe sales
mand
n
4
".
brochure
New four page
other
t'"
pfd. & comji;
Stock Exchange
total
.
l
'
Common
•
in 1943 and 1944
All
t
Long-Bell Lumber
rose.
;
,
Wawaset Securities
An Outstanding
H.M.
could
to
Trinity 3908
Post War Stock
In other words, because of a
shift in the distribution of income,
income
650 S. Spring St.
CG 362
i
Fractions
&
Lots
.
P'X'-y;
Invited
Empire Steel Corp. com.
Pittsburgh Railways Coi
Warner Col
use.
sales
j
7-1202
American Box Board Co.
LOS ANGELES 14
135 La Salle St.
and 1944
had income
which
own
N. Y. C.
MARKET
Odd
of
substantially above the aver¬
line of relationship that pre¬
age
NEW YORK S
ENTERPRISE
Hartfd 6111
ex¬
,
non-durable
Aiqmbers N. Y. Security Dealers As*
must
a
decline in their non¬
durable goods-sales if income de¬
clines':'
In other words, if dis¬
pect
$100
Direct
a
This
is- brought
out
more
clearly.;.when we separate non¬
durable goods from durable goods.
In the non-durable goods field it
is particularly jmportant to note
that since safes are about in line
posable
120 BROADWAY,
sales
were
v
CHICAGO TRACTIONS
on
indication of
COrtlandt
DISTRIBUTION
CHICAGO 3
,
I
Circular
$45
ply
International Detrola*
Magnavox Corp.*
Majestic Radio & Tel.*
P. R. Mallory*
Stromberg Carlson
V
★
and
about
to
to
Dealer Inquiries
22%.
or
PH 30 !
Phone
Private
u1';
:
:
St., Philadelphia 3 !
UNDERWRITERS
handling highly
has been freely available. restricted
products.
In all cases
Since 1941, however, sales in re¬
there are considerable, gaps be¬
tail stores have fallen, due to the
tween actual sales and sales indi¬
shortages of supply, particularly
cated by income.
in the durable goods field.
^
Natural Gas
Instrument*
no
of past expe¬
shifting of the percentage of dis¬
posable income spent in all retail
stores during years in which sup¬
ELECTRONICS
General
of
have
power
Within the range
Pfd.*
Power
measure
is national in¬
come payments to individuals less
taxes paid by them.
•
Arr. and
best
we
Electric
Div.
The
power.
Power Com.
Gas Pfd.
Water
Federal
Illinois
& Wrnts.
Power
Tractions
Citizens
$58- billion
billion,
1943 and 1944 and
Therefore
'■
V
:•
Pennypacker 8200
Pacific Coast
—
for
needs;to know, vailed hp to 1942.
The reason is
where
he is not hard : to., f-ind% ,«
}Yomem*jyere
and ^how *fie
Vtofking in greater'proportion in
•pot there.
•
1606 Walnut
Wholesale Distributors
SECONDARY
about
"
Warner
of Securities Dealers
and retail sales of various kinds of
transition
the
$7 Preferred
BOENNING & CO.
Member, National Association'"':
Middle West
-
♦
^
CARTER H.C0RBREY&C0.
during®"
goods
;
l *
CHICAGO
indicate to you what can be expected in
of purchasing power
.
Tank &
Oil
way
-n'i
Executive
''•"'/'V..,
Standard Stoker
Tokheim
Research
Los Angeles
Hagerstown, Md.
share
Circular Available
f
Street, Philadelphia 2
about 4%
.
.
Philadelphia and
System
Pittsburgh, Pa.
$7.16
.
.
.
Wire
1529 Walnut
$16.34
.
Pf."/.'-[•:, t
^
^
>
Lays Decline in Retail Store Sales to
Shortages, Particularly in Durable Goods, and Predicts That Should the
National Disposable Income Drop to $100 Billion per Year, Sales of
Non-durable Goods Items Will Drop to $45 Billion or a Decline of 22%.
Because of the Shift in Family Incomes to Higher Levels, He Sees a
Larger Demand for Semi-Luxury and Luxury Products, Even if Incomes
Decline to 1942 Level, and Points to Possibility of Higher Purchasing
Power if Congress Raises the Minimum Wage from 50 to 60 Cents
per Hour.
.
Deep Rock Oil
Drackett
Du
.
^
.
Angeles Stock Exchanges
New York
Co., Inc.
"A"*
Cuban Tobacco, Pfd,.
Iowa
r «v;,,
President Econometric Institute, New York City
Radio
Collins
Cons.
.
.
vf. i;• .V.ii'i
•
By DR. CHAS. F. ROOS*
Com* & Pfd*
Buda Co.
Cons.
Market
The Transitidii Period
Son*
&
*
between
Philadelphia, New York and Los Angeles
$10 Par
•>-V
Aetna
Los
Central Iron & Steel
?
Purchasing Power In
Aetna Life
Request
Members New York,
.
.
Steel Stock p i' ■
A Low-Priced
Book Value
Standard Eng.
American Hardware*
Amer. Window Glass,
Memos on
Private
U. S. Truck Lines
41 «
Common
Teletype BS 424
Bell Teletype LS 186
V
-
:
BUCKLEY BROTHERS
.
Net Quick
INDUSTRIALS
Building
r-'We Suggest:
LOUISVILLE 2, KENTUCKY
Wickwire Spencer
Standard Stoker
United Printers & Publishers
MASS.
9,
4330
V.
1st FLOOR, KENTUCKY HOME
Triumph Explosives
United Piece Dye Works
U. S. Finishing, Pfd.
i
Security Dealers Assn.
philadelphia
BANKERS BONDS
m
Scovill Mfg.*
"
Y.
2-4500—120
System Teletype N. Y,
Steel
du Pont, Homsey Co.
"Shawmut Bank
Haskelite
I
Bell
.
Emerson
I
REctor
Valley Mould & Iron
Electrolux*
■
Members N.
Remington Arms
Telephone: HAnover 2-7793
Teletype: NY 1-2425
J.K.Ricc,Jr.&Col
Parker Appliances
:
Brockway Motor*
?
Midwest Refineries Pfd. & Com.
208 SOUTH LA
CHICAGO
Telephone
|
Bell
fSALLE
$T.
4|-ILLINOIS ^
I^indolph 4068
Syst#iTi,s®0'537
Stixt & Co.
INVESTMENT
SECURITIES
Attractive Situations
-
and
Common
convertible
American
ama
-
6%
preferred
Bantam
Coca-Cola
cumulative
of
according
issued by Hoit,
from the firm
street
ST.LouisI.MO.
attractive
to circulars
Rose & Troster, 74
Trinity Place, N. Y. City.
Copies
of
these circulars
may
be had
situations
olive:
the
Car and Pan¬
offer
509
upoyfii request.
Members St.
Louis
Stock Exchange
I
A1.ii^tfWm'WliU,AUVM.&/.&1,Jfi<>l.>i<iliWtift«»A,Jl^aw. n*p4 An.'»j.{j
•ytrsr^
i»
tsiu%y® ami
<*
Volume
261
FINANCIAL CHRONICLE
THE COMMERCIAL &
Number 4352
161
riii^
T
AMERICAN BANTAM
Dividend of 300 payable Jan.
f
par
Selling price—13
'
■.
\
*
194o
31,
n.
(Arrears $3.75) ■
/
(callable at 14 plus arrears!
-
$10
CAR-^ J
PREFERRED^
6% CUMULATIVE CONV.
.
t
»
-*
Circular on Request
v
WORKS:
COOPERATION
HOW
\
;
Abitibi Power & Paper Co.
"
•
Brown
*
Company
Elcctrolux
•«-
.
XiMemorandum
to
Horcitesiteim
|'
.'
-
j'
.v
Established 1914 : >,« r > ^
-1
'j
74 Trinity Place, New York 6, N. Y.
'
;
s
-
.
Telephone: BOwling Green 9-7400
Utilities
Minnesota & Ont.
>"
,
Paper Co.
Noranda Mines
Since
:
Teletype: NY 1-375
^
International
cooperation with other dealers is
primary business objectives
we
of
one
our
Sun Life Assur. Co. of Canada
often supply practical,
Bank of Montreal
effective, usable, statistical assistance.
iiiiiiiiiiiiiiiiiiiniiiiiiiiHiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiihiiiiiiiiiiiiiiiHiiiiiiiiiiniiiHiiiiiiiiiiiiiiw
Bank of Nova Scotia
For instance,
J
TRADER
With
ADVERTISING
In•• A11
experience seeks con¬
years
Branches-
Its
Plans
-
Guenther Law
,V
Canadian Bank of Commerce
Dominion Bank
to
a
Imperial Bank
study shows them
both institutions and individual in¬
Royal Bank
good appreciation possibilities—the basis
HART SMITH & CO.
profitable transaction.
52
Bell
We
Chicago Philadelphia San Francisco
^
••
glad to provide
are
a
limited number of copies of
this memorandum without
charge to dealers who
or
Purchasing Power In
teletype
us
and
we
imprinted
our name
prefer, in blank, with space for
New York
your own.
will send
you
or,
luxury
and
the number
Community Water Service
S'/zS-Bs 1946
you
East Coast Public Service
4s
v
Once
been
have
they
able, to
develop a demand for these goods,
they are likely to continue to buy
*
income level
them as long as the:
i warrants' it..^-v:.'.
is
come
further ~ consideration.
; warrant *
:
by
.consumers
level-for
income
1942:.:^,:'^-
1935-36 and
,
•
111-500 and under $1,000-;.
Under
$
>
$500
1,000 and
v
under
3.488
9.747
;
5.000
.
and
*
*
is
4,000,000.
J
[
probably
-
than
less
v
..■••/
-
Shifts
Group Income
^
There is,a large increase in 1942
v, over
1935-36 in the number -of
V
families
.
and .'single
'} having
and
consumers
$2,000
incomes' between
$3,000 and a. startling inin the number having in-
crease
»
comes
between $3,000 and
The shift towards
has
continued
in
$5,000.
higher incomes
1943
1944.
and
Here is a; very
;
.
large new market
high quality, luxury-type
goods.
\ ci
for
i J In the post-war period, incomes
;
"
will, drop and their distribution
will
towards
work
We
the
v
see
distribution
no
unfavorable
.
reason
to
to
that of
for
be
1942.
expecting
any
more
purchases of luxr
'
ury
'
and semi-luxury semi-durable
goods.-/-
■
i
was
billion
-
in
November,
1944J
•
The
•
current
large scale battles being
waged in Europe will decide-the
i length of the European war.;
If
,
-
the Allies should be able to trap
(
a
large
German
offensive
\and; follow. through
,,
,
force'
with, their
scheduled
drives
through
the
Westwall, the European war might
wiv
i <
v
•
j/y GOVERNMENT,
tr
.
PUBLIC
',0 f
;
MUNICIPAL, RAILROAD,
UTILITY,
AND
INDUSTRIAL
IN V E ST ME NT
"
Incorporated
N,
Members
Y.
-
Security Dealers Ass'n
New York 5> N. Y.
63 Wall Street
Bell Teletype NY 1-897
BONDS
•
STOCKS
-j
=.-
The fact that the Germans
been, able
our
to
move
so
suggests ^the possibility that they
are
using: new weapons or new
techniques for which we have not
yet found, effective counter-meas-,
ures.
? :
;
$
-
?
'j4
.
next, t\yo or.; three
The
should tell whether
fer J a
Western Pacific
fast
great' superiority, of
and planes at least
major
v
defeat
in
Which would mean: that
need:, many Trionths
weeks
to suf¬
we are
Europe,-
~
would
we
to regain the
initiatives If this should turn out
the conditions of
might be repeated.
This
would bring back into being the
various i regulations and restrict
tions of that year*
In that event,
to be the-case,
1943
disposable income in March would
probably be about 3%
greater
that it was in March,: 1944, and
"A United States of
Europe Now"
i
By HON. BURTON K. WHEELER* /
;
United States Senator from Montana,.
;
A
;
Senator Wheeler. After Stating That
Brill
/
a
Members New York Stock Exchange
1 Wall St., New
Dlfby 4-7660
American Maize Products Co.;
Urges the Creation of a United States of Europe. Protests
Against the "Brutal and Costly Slogan of 'Unconditional Surrender/"
a Peace of Vengeance and America's Participation in the Policing of the
In Senate
General Tin Investment
Eastern
April, May and June it would
be slightly above the figures
for the corresponding months of
Politics.
The opiates that have
been poured down the throats of the American people for the past
1944.
several
-
There is also a possibility that
income after March will be some¬
what
higher than forecast under
the two above conditions.
Con¬
considering
is
gress
raising
the
dlers
hour
n a
cents/
Since
few
manufacturing wages are under 60
cents
hour,
an
viewed
as
of
wages
the plan must be
of raising the
means
a
low-paid
y':; •/
white
collar
J J-
y-J \
t
e
off.' For
are
sev¬
Ferris
Hardgrove,'
&
this
an
elected
,
to
the* 12-member
Spokane
the Seat¬
'
tle-First National Bank.
•
~
i.
*>
<t. f *
■
-*
.
•» .v
us
m
:
*
'
now
:*¥:
evergrq-w.-:-;-
ing number of
Building, Grant Dixon, R. J. Mar¬
tin,:;, and .Robert P. Porter have
been
"people's;
a->
-
realize that
about
"i
peoples' of
;:••
Burton
the "
all
-
-
'
1
K. Wheeler
Co.
National
.
.;
^
with
Wheeler
Broadcasting
Network, Jan. 5, 1945.
(Continued on page 272)
-frocOyil al
j
14 Wall
of the New York Stock Exchange
nounces
been
bond
that
and
exchanges, an¬
Joaquin Titolo has
! appointed
Incorporated •
,
;;
Y. Security Dealers Ass'n
New York
Teletype
5,jN. Y.
NY 1-897
,
Mr, Layne for
Harris, Upham & Co.,
other leading
N.
Street
head
of
their
HAYTIAN:
^§|CORP.:;
*
1
Quotations Upon Request
FARII &
CO.
Members'"
New York Stock
New York
Exchange
Coffee & Sugar Exchange
120 WALL
ST., NEW
TEL. HANOVER
trading departments.
..si-;-n
••
common
in the
engage
Depis.
Of Harris, Uphani Go;:
and
>
\
partner iri"Hill
Tiloio Heads
"An address by.Senator
the,
Staley Co.
Bell
Street, New York City, members
v
every nation - have had to do
over
to
many years was a
&
-proposi-.
that
war." But
Paulsen
j
have been fed
e
Building
securities business.
Am ericans
;iS.
SPOKANE,;; WASH. — Harper
Joy, Executive Vice-President of
Trust
eral long years
t h
Members
63 Wall
CINCINNATI, OHIO—Lucien B.
Layne has formed Lucien B. Layne
& Co. with offices in the Union
wearing
now
E,
Frederic H. Hatch & Co.
(Special to The Financial Chronicle)
f ortu-
1 y
Layne Opens
Own Firm in Cincinnati
ped¬
tion
Harper Joy on Board
Of Seattle-lst Nal'l
Lucien
p r opa-
ganda
A.
com.
<s>-
years
by
the
selfappointed
diagnosticians
minimum wage from 50 cents per
to"; 60
Lion Match
.
Truth is always the first casualty of war.
and
Sugar Associates,
Speech He Accuses Russia and: Britain of Power
also
.
York 5, N. Y,
Teletypo.NYl-f>55
^
of Influence Which He Says Will Lead to World War III
and He
World.
/
Gude, Win mill & Co.
Common Statement of
Purpose Towards Europe/'. Asserts That He Is Convinced That the Ma¬
jority of the American. People Believe With.Him That a United Nations
Political Council Be Immediately Set Up as a Counter Measure to Uni¬
lateral Peace Settlements Now Taking Place. Condemns the Setting Up
of Spheres
Corp. 7% Pfd.
'
"the Precious Unity of Great Britain,
Russia and the United States Cannot Produce
4%s,1949
American Locomotive Old Pfd.*
~
^
5s, '73
5s, 1946
Chic. & Northwest
in
'.end during the next two or three advisory board7 of the
••.. '•
'■
;■'"V >?•:,!/•V arid Eastern- Division of
Exchange
Phil. Read. Coal & Iron 6s, '49
I months.
-In that event the income would
Frederic H. Hatch & Co.
,
Phil. Read. Coal & Iron
workers."
;at the annual rate of $134^5
......
Members New York Stock
.
principal determinant of demand,
^
m
•
Disposable income, which is the
<
"
with the need for rebuilding sup¬
manpower
ffl,000,000.
:
t •
Likewise, < whereas " in 1935-36
about. 11,185,009 had incomes betweeri $500 and $1,000 per year,
only 6,652.000: had7 such incomes
in-1942.
At the present time the
Consols
'p'4%
Teletype NY 1-993
;y^..20Ll^'vdnsbiwy$Ucet,yBOSTQNi;iO.:
v.
against the Allies, : we would
probability of a long war
despite,
/incomes, and at the present time
•the figure is probably less than
Securities Co. of N. Y.
Telephone HAnover 2-1-700
-
*
face the
3.318
,
p''£-< :$8 i'WiMm-' Street
:;,.5"Issues *•/ :
v;;
Peoples Gas (N. J.) $l/2% 1960
If the battle in the west should
plies.
.;747,000 had incomes under $500,
Jin 1942 only 3,488,000 had such
.figure,
P '
7,253
•902
overi_-ii.
'
>
The Battle in the-West
;
have
.7,890
J
tpyp-ijppi-p a;:;,;,,
*6,652
12.240.
and .under
v
durable
consumers'
the downward trend. \>.*
verse
12,609
11,185
2.000__.
,3,000^ ;; 3.819
1,565
3.000 and under
5,000-J:'
2.000
.
Pressprich & Co.
4;^V:","NJEWi"'YbRk:'5
goods;'industries would , begin Xo
generate sufficient income to re¬
go
■.'■• ••■ /«*'
:•• ;■
.
.
v
i ^ •: 5 (In thousands)
.1935-36
1942
•
R. W.
':y., \
,
distribution of families and single
;
4.
about5
1945.
shifts in
shows
below
The table
5V2S '51:
Minneapolis & St. Louis Ry.
arid ii other
distribution of insufficiently important to
This changed
1948
Eastern Minnesota Pr.
$114 billion by
-The rate of decline
would- slacken" about that; time
and by September income would
level out at about: $110 billion.
After September-; thev automobile
June,
products/ r»
.
.
decline to
Toronto
you.
Write, wire
need.
(Conitri'ued from page 260)
semi-luxury
1-395
Montreal
may
if
The Transition Period
to
Teletype NY
A-'.Y/V'V"1
find it useful either with
ers
HAnover 2-0980
WILLIAM St., N. V. 5
New York 6, N.Y.
Telephone COrtlandt 7- 5060
Boston
Place, New York 8, N. Y.
of
Incorporated
{;
131 Cedar Street
Park
25
■
..
Commercial & Fi-
Chronicle,
nancial
;
Albert Frank
high-grade unlisted firm.
Box M17,
current memorandum for dealers
our
Prepared—Conference Invited <"
vestors, with
Exchange
Stock
York
be attractive
to
office of out of town firm, a
New
take
refunding bonds of the New York, Lacka-
and Western Railroad: this
wanna
,
1
nection with small New York
or
first and
many':
and
clientele
on
«•*.*i-
i.ii ,»
'
YORK
2-9612
'j:
"
THE COMMERCIAL & FINANCIAL CHRONICLE
SOUTHWESTERN
Resistoflex
PUBLIC SERVICE
Thursday, January 18, 1945
,
Pacific Coast
Corporation
Securities
Common Stock
'V
common
'
.
•
j'
'
-c
'
'1 ' '•1 Vc '
a.":
Vi.) * ''pv'\
1'"
'V-iCX
1 v
v;'"*' * v'
-
'~VJ. 'H'v .' ''V
Orders
■
Prospectus-upon request
;
Executed
on
'
Bought
—
Sold
Quoted
—*?;*
.'v./
....
.
1'*
'v,
„
,
*
..
„
V*
•
V
»'
:
.
•.
;
■■
'' '
*r"V'
i'i'-
1
.
V ' '?■
*
'
/•::
.-.
Pacific
Coast
Exchanges
y:i
•• •
:t"'
Herrick,Waddell & Co., Inc.
Paine, Webber, Jackson & Curtis
1879
ESTABLISHED
•'
55 LIBERTY STREET, NEW YORK 5, N.
.
.
Schwabacher & Co.
Y.
Members
New York Stock Exchange
York
New
Curb
Public
The Securities Salesman's Corner
Utility Securities
Interstate Power
is an operating subsidiary (controlling two very small sub¬
Formerly, operations were spread over a wide territory
sidiaries).
mid-western states, largely in the
a
number of changes have been *
about
made
in
the
set-up
in recent of
grain belt).
the
geographical integration -■ require¬
so
years,
as
to conform with
ments of the Utility
Holding Com¬
In November this pro¬
gram was largely completed, ex¬
cept for sale of one or two small
outlying properties.
The electric
and water plants in ten north¬
Act.
pany
western Minnesota counties, com¬
prising the "Bemidji-Crookston"
district, were sold to Otter Tail
a base price of $3,-
Iowa-Minnesota
con¬
plant account about $26,000,000 on
an
original cost basis.
However,
of the amount which the Commis¬
require to bewvritten off,
$8,000,000 represents acquisition
costs (in excess of original cost)
sion may
be
an
in
orig¬
inal cost (as of Jan. 1/ 1941) by
about
$23,900,000, > making
net
amount
this
and
in
made
that plant account exceeded
In order to round out its
principal area, this money was re¬
invested
been
Studies
formity.with FPC orders indicate
Power Co. for
000,000.
However,
$49,600,000.
have
which
amortized
''
riod.
could
over
*
.
a
New York 5, N, Y.
14 Wall Street
COrtlaadt 7-4150
Selling Securities JFhat Offer "Price Appreciation"'
Company
Corp. has almost consummated its recapitaliza¬
tion plan for Laclede Gas, it is possible that a revised plan .may be
worked out for Interstate Power Company (Delaware).
The com¬
(seven
Trade
Teletype NY 1-928
Private Wires to Principal Offices
Now that Ogden
pany
(Associate)'
Exchange
Board of
Chicago
probably
15-year pe¬
Thus, net plant account might
as high as $34,000,000 for
purposes of recapitalization.
Under the original plan this would
have permitted issuance of only
—
/
—
Santa
Oakland
v:T 'CT;
j
Barbara
:
Sacramento
—
M
Fresno
By JOHN DUTTON
One
reason
the
general public has often lost money when pur¬
chasing securities is. that they bought the wrong securities at the
wrong time.
Few security buyers in the past have appreciated the
importance of timing- in the purchase of their investments.
No
investment is without its risk.- All investments, as well as specula¬
tions,.
are an attempt
lations - which
are
evaluation of
a
to evaluate the future.
more
There are some specu¬
than
hazardous
others.
But
sound
a
promising speculation will oftentimes bring about a
Tomorrow's Markets ;
Walter
During the past few years, professionals in the business of judging
security values have made enormous profits out of speculations.
Several year ago a purchase of reorganization railroad bonds, when
they were selling in sotne instances as low as 1% on the dollar (MOP
Serial 53/4S for instance), would: have been frowned upon by many
an
orthodox investor.
However, those who had the foresight and
Rail bend-over, signalled two
something for nothing, when no one else wanted
OUT TODAY AND COLLECT ABOUT 3400%
How many "hits" like this do you need in a lifetime to
SELL
CAN
of the other losses and pitfalls
journey on from year to year? :
take
care
that come along as we
being
now
ago,
seen.
Conversion into cash for tax
payments
Effects
market
structure/
Present
lows im¬
portant to uptrend.
By WALTER WHYTE
the courage to buy
it,
Whyte
Says—
weeks
profitable return than many so-called investments.
more
PROFIT.
7
Francisco
San
Monterey
Possibilities Is Opportune At This Time.
The
signs of a
which this column
last
rail
top,
discussed
more evi¬
few days.
Whether this top will be the
ing $250,000 cash available for
his convictions, recommended and sold a security of this type to his
other investment.
one
from which they'll go
customers.
Let us assume that he sold every account on his books,
While its geographical problem $17,000,000 new 3J/2S, but judging
including the widows and orphans, a certain percentage of this type into a real reaction, or just
from similar refunding operations
is now
property purchased from Central
States Power & Light Corp., leav¬
now
practically settled (it is
principally in Iowa and Min¬
well-integrated basis),
nesota on a
the
problem
recapitalization
of
remains to be settled.
In 1941, a
sub¬
mitted to the SEC, setting up six
different bases for assigning cash,
debentures or preferred stock, and
common stock to the publicly-held
securities and Ogden Corp.
The
elaborate
rather
plan
was
different
assignments were
varying
assumptions
With respect to (1) the degree of
six
based
on
company's
debt to Ogden Corp. and (2) the
valuation
to
be, placed
on
the
plant account.
subordination
At that
of', the
time the
SEC held the
view that bonded debt of a recapi¬
talized
should
plant
not ex¬
volume.
remain
the
the past year or so, it seems
over
possible that
more
of
new
be issued.
the
some
3V2S
$20,000,000 or
or
3%s might
It is harder to estimate
amount
of
which
debentures
week, became
the
in
Let; us apply this type of reasoning to a case wherein a security
dealer, sensing the opportunities for profit and having the courage of
dent
Would these customers have been better off with triple
high-grade bonds that would have shown them a return of around
2SA% before taxes?
The answer; is they .would not!
another
of security.
A
In other
t
words, there is no such thing as a dividing line between
A good security is one
so-called sound investments and speculations.
which you make a profit, either in income or appreciation, or
The more profit you make out of it while you hold it, the
might be permitted under present
conditions but the original pro¬
upon
posal of about $6,000,000-$6,800,000 could perhaps be increased to
better
around
mains
two
minor-setback,
be
to
based
past
on
re¬
Although
seen.
the action of the past
weeks, the stock market
who
trader
was
not hungry
point would have
United, States Government bonds bought at 100 duringvthe last war,
$8,000,000, it is conjectured.
This would make a mortgage debt
both.
ratio
of
72%, based on the
assumed $34,000,000 net plant ac¬
count (if a complete write-off is
required,
however,
the
ratios
would be much higher and the
r
size of both issues would have to
be scaled down accordingly).
On
forma basis, including cur¬
depreciation charges,
it is estimated that mortgage in¬
a
pro
to
The tinest grade bonds bought at the wrong time can
be
losing
a
venture
sold in the seventies a few years
ratio of about 59% and an over-all
debt
tit is.
out
turn
For this1 reason,
and
investment.
unprofitable
an
\
later.
The
it appears advantageous at this timfe to recommend
and sell securities that have as their
main attractiveness the possi¬
of "price appreciation.*"4 Times such as we are living
through today do not come around very often. Economic laws cannot
be repealed.
No matter what the sayings of the theorists, advanced
economic thinkers, government'planners, rule makers and regulators
bility
be, about controlling price lpvels and our economy, this country
in a rapidly - progressing period of' gathering" inflationary
forces that is growing and gathering momentum daily.
Anyone who
believes that panics, booms or depressions can be eliminated by a
"New Deal," or any Other kind: of deal, is just too naive to-know
may
is
now
i
stepped aside,
V
"
*
>
for the last
,'
.
utilities, to which at¬
tention
also
was
called
last
week,
began making ; tiny
steps in an upward direction.
Some of these little steps may
develop into real strides.
It
is doubtful, however, if the
utilities will acquire a public
following in the first stages.
However,
since 1941
the new
There are too many: statisti¬
terest requirements might be cov¬
any better.
The economic forces now on the march are having their
theory of
"original cost"
(ad¬
vocated
cal arguments against them.
by the Federal
Power ered about three times after esti¬ say—and they have only started talking.
'
'
;
* ;
r
mated Federal taxes on income
Commission) has gained consider¬
So, if you agree with this viewpoint, why not do the intelligent Everybody has read, or has
(the company is not currently
able ground and this frequently
thing for yourself and your customers?
If you believe you have the been
told, that under inflation
paying such taxes).
involves very heavy plant write¬
ceed
company
50%
of
net
rent heavier
.
.
,
.
ability to select undervalued speculations that can be bought today
There
offs
(including funds actually in¬
vested in the property in purchases
from
companies).
Possibly, for this reason the SEC
is currently less exacting in its
requirements regarding debt
ratios, especially where plant ac¬
count is written down to "original
predecessor
cost when
service."
first devoted to public
It would
seem
to be a
good possibility therefore that the
1941
plan may be substantially
modified.
Plant
small
are
currently outstanding
that those WHO
stantial amount of cash, plus some
RULE BOOK OUT THE
debentures—but
account
the
amounted to
(excluding
subsidiaries)
$51,631,482 in 1943, less deprecia¬
tion of $1,964,263, or a net amount
at a price which you think presents an opportunity for a substantial
profit within the coming year, why not take this story to your clients?
Why not point out to them that these periods in the economic cycle
only come about a few times during the average lifetime?
Why hot
show them-that a 50% profit is worth almost 14 years of waiting for
(selling around
98V2),
$7,500,000
debenture
6s
(price about 76V2), 72,500 shares
of $7 preferred (about 20)^47,500
shares of $6 preferred (133/2) and
107,000 shares of common. (85%
held by Ogden).
The mortgage
bonds' would
appear
to
be in
sound enough position—they will
probably be paid off with a sub¬
$26,035,500 1st 5s
debenture
hold¬
hardly expect to be paid
off entirely in new fixed income
securities.
At best, it seems likely
that they would get only about
ers
the utilties have little to look
forward to.
Utility operating
rise. But with a
rigid rate: 'structure which
dividends, or interest, ■ to -accumulate;its equivalent at 3% com¬ can only be revised by regu¬
pounded? YU:- • -V ■■■■J:'--'■ vvV^f:
latory bodies, utilties cannot
Do you believe this is radical thinking? : Well, possibly it is!
make any money.
Yet this
But anyone who hasn't the Courage to adjust themselves to prevailing
conditions in times like these will wake up someday and find out opinion is so widespread the
WERE INTELLIGENT ENOUGH TO THROW THE
WINDOW have walked off with most of the
business and a greater
can
share of the profits.
There is an old adage,
-
-
•
.
"don't try to hold back the tide." As
are
in
may
chances
the
Utility 5%s 1952
a
Associated Gas & Elect. Corp.debsJ
are
moil—war, debts, taxes and $86,000,000,000 budgets are things that
cannot be denied.
Their effect .upon our economy will be telling.
25-30%
aged
in
in
debentures,
BROADWAY,
Direct
NEW YORK 6, N. Y.
Wire
to
Chicago
as
envisr
the11941 plan, with the
balance in common
stock.
It is hard to see how the
stock
public)
29
a
flaw in
any
case,
average
ferred
Gilbert J. Postley &sCo.
In
shows better than just
performance.
group
able to rehabilitate
Crescent Public Service 6s 1954
Portland Electric Power 6s 1950
there is
the stock market action of the
stantially. Your customers will be better off and so will you, if you
sell this type of security.
Some day there will be a different story—
but that's a while ahead.Today, we are looking at a world in tur¬
Central Public
are
reasoning.
we see
period of inflation when many a company will be
itself (if even temporarily), and as a result the
market value Of certain securities of this type will appreciate sub¬
It—we
costs
can
(96%
held
hope for very
$7 pre¬
the
substan¬
by
tial treatment event if the debt
to
Ogden is completely subordinated
(the two preferred stocks held by
the public have a current market
value of around $2,000,000). How¬
ever,
until the company and the
SEC have decided
on
a
plan, and
the amount of incdrne taxes pay¬
able on the new set-up are known,
it
of'
will
course
be
difficult
to
appraise the position of the pre¬
ferred
stocks. •" The
earnings of $3.04
on
the preferred
stock may however be
misleading,; because
that
no
Federal
share
recent
Where the rest of the stocks
concerned, there is little
to be said.
stock
of
under the present set-up.
the
fact
paid
are
'
a
to
th®
creep up
a
new
high level. But
majority of industrials have
been
feeling the weight of of¬
fers
which
last
few
appeared in the
days.
Under usual
conditions
somewhat i should
taxes
Here and there
managed to
large offerings
spell caution.
This,
however, is
of
a
no
manifestation
usual condition.
(Continued
on
The war,
page 279)
i" Volume
Number 43S2
161
ATTRACTIVE BONDS
Now
"■
Y-
,»i,
«»j■
Avai.gble
"
Chicago, Mi!., St. Paul & Pacific Railroad Co.
"When IssueJ" Basis
on
•
.
'
j."
.'.j,1
'
,
.'•/
.
f: -A
■
,
^
Chicago
Lackawanna R.R.—N.J.
D. L. & W.
F.rst
When Issued Securities
lyaz
4s,
M.ge.
Railways Co.
'
D. L. & W. Utica
Fast
!
>
•
"
4s,
4%s, 2019
2044
"A"*5s,
Cons.
5% Preferred Stock
,
Common
request
on
B Income
''V
1994
Income
A
'
Ivicgei 3-5s,
Details
t-r-
1st
Chenango Div.
1927
Stock
pflugfelder, bampton & rust
■''V,,v.'
J
GUARANTEED
Xjr-'XS—
55
:
•
Seaboard
New York 6
Bell
Telephone—DIgby 4-4933
New York 6, N. Y.
Broadway
Exchange
York Stock
''61 Broadway
;
INCORPORATED
.
...
Membert hew
J
STOCKS-BONDS
RAILROAD
:
Teletype—NY 1-310
Railway Co.
(When Issued Securities)
Additional Expressions Anent
Peacetime Training Proposal
In giving herewith another group of expressions re¬
ceived in connection with our symposium on the peacetime,
j
.
'
-
Railroad Securities
Bought—Sold—Quoted
The St. Paul reorganization entered the last lap last week with
.
;announcement
by the Interstate Commerce Commission of the results
of the balloting by creditors on
the plan.
With two exceptions over
99% of those voting in each group voted in favor of the plan.
The
exceptions, the Gary bonds and the Adjustment 5s, voted 93.56% and
87.88%,' respectively, in favor of the plan.
new
securities whicn are«>
compulsory military training question, we wish to point out
that the paper situation upset our original intention, as stated traded-on a when-issued basis,
iresponded vigorously to the an¬
last week, to give all of the remaining balance in this issue.
nouncement, based on rekindled
However, it would appear that we will be able to aceommo- hdpes that the plan will finally be
consummated and the new securi¬
dite the final group in next week's edition.
;
ties issued before the end of the
I
In connection with this symposium, we would call atten¬
year.- tion to several discussions of the subject which appeared in
For, all practical purposes the
the "Chronicle",of Oct. 26, starting on the cover page. These consummation of the plan so far
as
the St. Paul properties them¬
reflected the opinions of, respectively, a prominent Catholic
selves --are
concerned
appears
educator, members of the New York Synod of the Presby¬
merely as a mechanical matter
terian Church and the President of a prominent educational from here
on.
The one consid¬
The old bonds,
Ernst&Co.
well
as
as/-the
—
MEMBERS
New
Western
York Stock Exchange and other
leading Security and Commodity Exchs.
Railway
120
of Alabama
.
Broadway, New York 5, N. Y.
23^ So. LaSalle St., Chicago 4, 111.
'
also be made of the fact that the
results of our survey in the matter have been carried in our
columns starting with the issue of Nov. 23 last.,
I *;
Mention may
institution.
V.,"-■"■■'■'V.'":i"
^
^
Wales, Fla.
Lake
with
wonder the articles
surprise and
by responsible men
urging universal military
in your paper
who
are
—
...
.
'
,
•<'
■:
..
technical
to
Terre
Haute
lease.
Haute
bondholders
have
not
an>
a
their
not
as
opinion of the
through' balloting.
Texas Bank I Trust Oo.
however,
acceptance
lease will have to be voted on by
the
W; ML Johnson Continues
new terms
Eventually,
of the new
holders.
bond
that
is
It
known
committees
representing the
are opposed to
Business of Garrett Co.
the terms, which would put part
DALLAS, TEX.—P. B;- (Jack) of their rental on a contingent
Garrett of Garrett & Co., Inc.y basis—contingent on system earn¬
has been elected President of the. ings rather than on separate earn¬
Texas Bank & Trust Company of
ings of their own property.
In
y h Dallas/ it
has particular^ holders of the Terre
■
mil itary ex¬
pert, but as a
of
student
his¬
economic
■
let me
A large
tory,
say:
been / a n
the
universal
o r
h
pened in
we
States
Roger
W.
her
Why
for R. H.;
Johnson & Co,
ager
;?
§ of New York,
expect
!,• has
United
the
an
Dallas
o
nations.
can
be
stock
ii of Garrett. &
k Co., Inc.,* and
de¬
army.
search,
for
but
orga-
will
p'continue to do
...business
equipment and ire-
not a penny
new
,,,
but not <a large standing
Let's continue to spend
"billions"
•P.
Garrett
B.
.•
for the
and their
10,000,000 returning veterans
"want," why should their wishes
name
tion
more
000
weight than the 120,000.-
people
remaining
of
this
-
of
dent
M,
W.
are
and
the
Na-
Bank
of Garrett & Company,
Officers
at
the corporate
Building under
cut
,
First
the
tional
seeds of revolution.
'As for what the army
his
'
r.: nization
sired; also island outposts for air¬
ports;
tire
e n
I capital
exception?
is£ to
purchased
p the
be
to
A large navy
Babson
Man¬
hap¬
s"
a
•
formerly
son,
dictatorship.
It
of
board
W. M. John¬
tably leads to
a
?
directors. ,;"
inevi¬
-
b y
nounced i
standing army
service
Johnson,
Presi¬
Gar¬
P.vB.
Treasurerj
Inc.
organiza¬
new
Haute
are
r
-
P.. S.—This
time military training
-
-
question of
peace¬
is too im¬
portant to be decided by FDR or
even
by Congress.
of time
endum
■j
to
on
take
a
interest
President;
F.
if
tary.
Schmucker,
;
Secre¬
REetor
5
York
Railway
Teletype
NY 1-2800
2-7010
of
'
(Continued on page 276) T- ;y
the/junior
as
Eventual compromise
is
expected. but it may possibly
delays.Consummation of the St.
Paul plan even though under the
terms of the plan it may be put
,
into v* effect
without
Haute properties.
Terre
the
/ /
.Regardless of any temporary
delay-that may be occasioned by
the Terre Haute question, students
of
■
-
-
reorganization railroad securi¬
ties
enthusiastic-
.are
over
the
securities.
possible that the large cash
payments allocated to the General
Mortgage bonds and the 5s, 1975
may
be
distributed > before
the
plan as a whole is consummated.
Once the plan is finally confirmed
by the court (obligatory in view
of theUresults of the
balloting)
the
prospects for
It
bonddepart¬
the' municipal
ment, and A. F. McKnight
loan, the Gary, bonds
new
is
.
there would appear to be no legal
reason/for
not
distributing the
cash;
■
It
also
quite likely
seems
the modest RFC loan will be
accorded
.
the
remaining
claims.
receive
to
uled
of the
in
stock
ratio
reorganization,
of
10.92
This
bond.
RFC
the
would
shares
11.47
to
trading department. -".V•>-
shares
and
for
the
other
ties.
shares
-
of
the
RFC
on
that
paid
on
mis¬
the re¬
obvious
the
market
compared
dividends
dividend
no
the
had
common
been
with
paid
the
of
out
common
as no
later lapse in
dends
r-
vV-'r
.r'V:
Broadway, New York 5
-
Telephone:
REctor
2-5000
so
and
long
19 Congress St.
Telephone:
V•;
Boston 9
LAfayette 4620
BUY WAR BONDS
Greston Funk
Opens
Own Investment Firm
H.
SAN ANTONIO, TEX.—Creston
Funk is now engaging in the
investment
business
vidual dealer
Alamo
Funk
f-
National
was
as
an
indi¬
offices in
from
Building.
the
Mr.
previously Vice-Presi¬
dent of Pitman & Co.
preferred divi¬
match
any
common
FOR SOME MAN
sinking fund for
a
the Income bonds
stock
...
120
It is still necessary,
occurs.
to
and other Exchanges
,
could
1944
subsequent years' earnings
Members New York Stock Exchange
unless
on the
preferred for the three consecu¬
tive preceding years.
In effect
this
would
have
automatically
prevented dividend payments un¬
til at least four years after the
effective date of the plan.
This
was later amended, however, and
it is now provided that dividends
on
the preferred have been as¬
sumed to have been paid in the
three years preceding the effec¬
tive date of the plan, Jan. 1, 1944.
Payments may therefore be made
on
JosepMial&Co.
restric¬
some
reorganization junior equi¬
Initially it had merely been
proposed
be
Bought—Sold—Quoted
increased
dividend
as
-
-
apparently
influence
-
payment of
understanding regarding
strictions, have had an
adverse
-
regardingV the
stock
common
i
■
in the
$1,000
-
Apprehension
tions
per
be
with
loan.
dividends with
Without j. payment
Issued Securities
paid off prior to
reorganization.
The Adjustment
5s
are
allocated
only
common
however,
gage. '<
New When
the RFC loan is
ulative-appeal' of
possibility adds to the spec¬
the old bonds
and is particularly important per¬
centage-wise to the Gary mort¬
sched¬
preferred
are
only
stock, in the ratio of 11.4 shares
per $1,000 bond.
This would be
increased by more than 26% if
This
-s''
-
national refer¬
v;:>
treatment5s,
U. S.
paid off in,cash which will auto¬
Assistant Vice-" matically improve the treatment
y ; J. Irvin Shilg will be Manager
'
Refunding Mortgage bonds
to receiving the same
rett, Jr. (now serving in the
Naval Air Corps),
There is plenty
the subject.
Broadway, New
Telephone
averse;
income
that
country?
120
Terre
The
Seaboard
O'CONNELL & JANARELI
bring more than
delays is the revised
apt
Terre Haute bonds
Scivice.f.
I
■
Jack Garrett Pres. of
,
following
been
have
1
Bought—-Sold—Quoted
yet had an opportunity to express
ROGER W. BABSON
I
1
eration
41/2S due 1958
BANK QUALITY
the Preferred
or
equivalent
50%
to
dividend payment.
of
EXPERIENCED
the
V
.
vl::
RAILROAD BONDS
We have
BOSTON & MAINE
prepared
a resume
There
"The Present Status
Income 4V2s, 1970
Circular Upon
Request
"
'
'
of
of the
v'y '
-
-
:;i
i
nity
in
V;.T
•
Members New York Stock Exchange
TEL.
HANOVER
2-1355
TELETYPE
NY
1-1310
and trader
and
Inactive Rail Bond House.
Copies of which
are
available
upon
1. h. rothchild &
Member
of
National
specialists In rails
co.
Association
of Securities Dealers, Inc. '
52
wall
street
HAnover 2-9072
~
Address
our
advertising agents
request
,
■
NEW YORK 5
good opportu¬
SEABOARD ALL-FLORIDA"
Mclaughlin, baird & reuss
.
a
Over-the-Counter
v
ONE WALL STREET
is
as manager
n.
y. c. 5
tele. NY 1-1293
Albert Frank
-
Guenther Law, Ipc.
Dept. 18
131 Cedar St.
New York 6, N. Y.
Thursday, January 18, 1945
THE COMMERCIAL & FINANCIAL CHRONICLE
SPECIALISTS
1
j'WfMWMllifM. ..vl ''Ay*'hkhjjtyOr.'1;'•.
V.
-J
J*,.
'•
-
:*L
.
<v j4"*" ^
1
in
Successful
Special and
Real Estate Securities
REAL ESTATE
Since
1929
Secondary Offerings
SECURITIES
I
Seligman, Lubetkin & Co.
Primary Markets in:
Park Central
4's
New
York Security
Broad Street, New York 4
41
There is
Real Estate Securities
The
Stock Exchange
Exchange
Memben New York Curb
Government, therefore,
call. Consequently the
outlay for building operations for
&c.,
ACTIVE MARKETS:
the
had
NEW*Y0RK
by
and
despite the considerable in¬
this
result of which the erec¬
tion of a building of any class en¬
tailed a much greater expenditure
PRUDENCE COLLATERAL
AA
3 to 18
-
a
in 1918 than would have been re¬
quired for the
F 1
Circular
-
on
in
SIEGEL & CO.
1
Teletype NY 1-11142
ing
cure
mid-winter meeting
discuss
to
-ablated to the
and to: plan ior aiding re¬
turning veterans who will re¬
enter banking when peace comes,
according
to
William C. Way,
President of the institute, who is
war,
also
National
Bank,
the
Pressprich
&
Lackawanna
shows
the
Cq.'s
tractive
to
individual
and
them
Western
be
to
institutions
both
with
investors,
appreciation possibilities.
this
of
able
in
memorandum
limited
it with
R.
and
good
Copies
are
number
charge to dealers who
at¬
avail¬
without
have
may
W.
Pressprich & Co.'s
name imprinted or in blank with
space for their own. Copies may
be had upon request to
R. W.
Pressprich & Co., 68 William St.,
New
York
City, members of the
New, York Stock Exchange.
Lt C. F. Smithers Resumes
Active
F.
S.
Partnership
Smithers
m
Co.
year
States
^Furthermore,
bers of the New York
announce
Stock
C. Francis
Ex-
that Lieutenant
Smithers, who for the
past two and one-half years has
and
other
it not
stationed
at
Norfolk,
Vir¬
ginia, with Captain of the port of¬
fice
of
the
United
States
have
would
total
been
tive duty and has again
expanded. As stated, com¬
parison is made upon the cost
basis (any reliable
data
comprehensive
quantities being un¬
available) but the gain 1919 shows
over
that
to
as
any
believe, were it possible
we
to make proper
ferences
allowance for dif¬
in
prices for labor and
the year would
still
stand as an exceptional one.
A comparison of the prices for
various materials at the beginning
material,
of January this year with those
orevailing twelve months earlier
leaves
no
active partnership with the firm.
Higgins,
F.
Cleef,
directors
o
Co. at the
doubt
as
to the consid¬
that
advances
had
to
be
:
COMPARISON
OF
BUILDING
glad to give
f
•''
\
'•
The
-in*'
i9i6_
of
.
bank
.
were
ing
„
i
'
<
y
re"'/,
•
j
(
BOSTON
Guaranty Trust Gs.
Reelects Directors
year
1944
was
$101,982,
equal to $7.28
Jabez H- Wood
This does not in¬
per
clude
share.
profits
realized
sale of securities.
for
the
per
the
on
Dividends paid
share.
year
amounted
to
$1.40
Webster Heads Comm.
of Beekman
Hasp. Fd.
Webster, Jr., senior
partner of Kidder, Peabody &
Co., 17 Wall Street, New York
City, has accepted chairmanship
Edwin
of
the
S.
Securities
Committee
Major in the United States Army.
armed forces,
he served as Secretary.
Coincidentally,
Matthew
C.
Jones, Jr., formerly Assistant Sec¬
retary of the Lawyers Trust Com¬
pany, has succeeded Major Rus¬
sell as Secretary.
Mr. Jones has
also
the
@$75
to $48@$100; wood lath
$6.50 to $20 per 1,000; lum¬
$74.50@$130 to
of
Secretary
elected
beey
Lawyers County Safe Deposit
The
Cross
Company,
manu¬
tools, of¬
machine
of
facturers
attractive
possibilities for
the post war period as well as
currently, according to a memo¬
fers
randum
H.
on
the situation issued by
&
Roller
Inc., Ill
6, N. Y.
Co.,
York
New
Broadway,
Copies of this memorandum may
be had from F. H. Roller & Co.
upon
request.
■/
.
tions
1913 jobbers list, and a
marking
up
of
ACTIVITY—1906
TO
Merrill
INCLUSIVE
440,037,419
103,068.798
716,172,709
&
Beane, 70 Pine Street,
New York City, members, of the
New York Stock Exchange, who
Fenner
has been
duty with the Armed
on
returned
his
to
with
post
919,116,902
172,945,720
931,937,300
138,115,266
753,730,258
••
.<891,845,524
818,029,278798,913,875
1,027,515,183
1911
235
200,325,288
762,174,380
962,499,668
1910
223
213,848,617
209
273,108,030
206
174,757,619
200
197,618,715
241,064,458
$2,645,690,762
Relley.
Bissell
Laird,
&
Leeds,
120
Broadway, New York City, members
of the New York
,
Stock Ex¬
change, have prepared a compara¬
tive
analysis
and
for
eighteen
ratios
Bank Stocks in 1944.
had
be
from
the
significant
New York
Copies may
firm
upon
re¬
quest.
has
Gundy & Co., Inc., 14
New York City, have ~
interesting pamphlet on
and War Finance, Sen- *•"/
Wall Street,
an
tember
1,
1839—November
30,
1944," which gives an interesting
survey of many salient features
of the Dominion's wartime
econ¬
Copies of this pamphlet
may be had from Wood, Gundy
& Co. upon request.
omy.
the
Attractive Real Estates
New
Willard Visits Wall St.
1,140,410,876
758,991,580
17,
v'"v'r■ V'-'v
firm.
819,241,507
221,293,974
Jan.
following directors, whose J;
terms had expired, were unanim-no
ously re-elected: George G. Allen, V
F. W. Charske, ' Arthur C. Dor-(
ranee, Charles E. Dunlap, Walter :
S. Franklin, Lewis Gawtry, John
A.
Hartford, and Cornelius F. *
"Canada
Weiden, partner in the
Lynch, Pierce,
Merrill
of
$1,505,317,260
496,537,914
286
held
was
The
issued
Lynch Pierce
Norman
firm
Forces for the last two years,
1919,
board,
1945.
Wood,
Norman Weiden Returns to
quota¬
for
of - the
Canada and War Finance
reduction
moderate
Guaranty Trust Com¬
pany of New York, presided over
by Eugene W. Stetson, Chairman
Analysis and Ratios of
$120 to $295, with the greatest rise
the March
of the stock¬
of
New York Bank Stocks
Post-War Prospects
ber and trim from
in flooring—106 to 131%; glass, a
in the discounts from
holders
Company.
F.
sponding time this year; on face
brick the advance was from $34
Trust Company.
He is
duty abroad as a
Prior to joining the
of
Hospital 1945 Main¬
tenance Fund, according to an¬
nouncement
today
by
Elisha
Walker, chairman of the drive,
which seeks $125,000.
the
active
on
The annual meeting
been
of
Vice-President
a
Lawyers
now
has
Russell
V.
elected
the Beekman
from
Lawyers Trust Co.
David
162,942,285
years__—1—_—
t
of
income:;
for
$1,243,817,071
163
-■».......
4 x \
Russell Elected V.-P.
expired.
Net .operat-:
228,601,308
14
P
terms
office .had
of
235
Total,
"
;'
director s,
whose
273
1908::::::::::::::::::::::::
will be
as
those
56,500,495
284
healthy and wider
our partners
re-elected,
$261,500,189
1914-.
to
morevd^taita
,
V NEW YORK
,
-
the seller. It leads
CHICAGO
were
Total All
284
1912
as to
the
cers
Outside Cities
1915_A_-i-.
their attention, many"
comes to
immediately enlist the aid of Shields &
Shields & Company
286
—
i
offi¬
286
-
you
"
i
meeting
286
1917
J
an¬
New York
Cities
1919
well
as
No.
Year—-
b*e understood
»
ownership of America's industry. One of
and
i
firm
stockhold¬
ers.
offering
must
handling.
Trust
Clinton
nual
sizable stock
a
things that
insure proper
to
Company in handling the sale. It's profitable to the invest¬
ment
elected
were
few of the many
are a
Van
lime, linseed oil, stone
grit. Against these, rather un¬
paid
in
1919.
Common
brick,
important declines are to be noted
quoted at $15 per thousand Jan. j in the price of structural steel as
1919 stood at $23 at the correa whole, plaster and sand.
erable
•
When
Jordan
Wood,
and
of
of
technique of stabilizing—awareness of State and Federal
and followed
insurance
firm
counsel
by investment
us
throughout the nation. Knowledge of Blue Sky Laws—
factor
broker, and Jabez H. Wood, of the
investment
formula—unless it is the magic of
our
Laws—Exchange regulations and the important "control"
Dir. of Clinton Trust
Joseph
magic in
no
investment firms
earlier year is so great
resumed,
the
Higgins, Wood Elected
even
further
Coast
Guard, has been released to inac¬
with
troubles
inability to secure ade¬
supplies
of materials
i9i3-
been
to
estab¬
had
1918
change,
new
a
was
&
Co.,
115;
Broadway, New York City, mem^
the
that,
promptly, it is fair to assume that
first and refunding bonds of New
Railroad
in
say
labor and
cur¬
rent memorandum for dealers on
York,
the
for
United
strikes
Appreciation Possibilities
W.
to
been for the hindrance caused by
quate
R.
it
high record in construction work
in
lished.
Ohio.
Cleveland,
that
dicates
Central
the
of
officer
trust
costs
ascending
and
Suffice
making the estimated cost of the
buildings
for
which
contracts
were
arranged in 1919 the basis
of comparison, our compilation in¬
educational problems
personnel
of bank
High
situation.
at
21-23,
Fla., Jan.
their
far beyond anything
in a long cycle of
unconsidered trifles
were
Roosevelt,
Jacksonville,
annual
situation
building operations were
merely by ability to se¬
the necessary material and
labor.
all,
in
19
meet at the Hotel
the
limited
and staff
Institute
of
numbering
Banking,
will
years,
council,
American
the
of
purposes
experienced
members! of
officers,
executive
1918,
close
tures for both business and dwell¬
At Jacksonville
National
November
a
spring. It came, and ever since ac¬
tivity has been the rule. In fact,
fostered by a demand for struc¬
AIB Council to Meet
the
brought to
war
changed and a marked revival in
the
building
industry
seemed
foreshadowed
for the
following
Dlgby 4-2370
N.Y. 6
structure in
same
earlier years.
))
Request
vvicn xne
S9 Broadway,
years,
many
very
flation in cost of material and la¬
Q
bor, as
-
dulness
cities
286
at
wide margin the
very
a
smallest in
TITLE£& MORTGAGE
-
months
twelve
was
F1
from extreme
first
the
Series A
transition
everything possible to assist the Government in bringing the war
in Europe to a speedy and sue- *
cessful close. On material, labor,
Dlgby 4-4950
-
witnessed
1919
year
firms
do
NY 1-953
C2
time—mistakes
specialized division of the securities business.
long experience and confidence placed in
phenomenal activity in building operations in the United States. It
is hardly necessary to recall to mind that in 1918 construction work
had been reduced to an extraordinary extent, mainly as a result of
the almost universal determination of the people of the country to
SHASKAN & CO.
-
There is
(Following is reprinted from Chronicle's Annual Review of 1920.)
Hotel, 4's
Series BK
ful in this
Building Operations in 1919, the First Year After World
War 1—Will History Repeat?
N.Y. Athletic Club 2-5's
Bell Teletype
Secondary distribution'
or
costly. Shields & Company have been active and success¬
are
Chanin Bldg., 4's
PL.,N.Y.
making a Special
t
Broadway-Barclay 2's
40 EXCHANGE
knack of
exactly right. They must be successful the first
Hotel, 4-i's
Members New York
a
HAnover 2-2100
(870 -"7th Avenue)
Beacon
i' v.'1''
-v—
Dealers Association
be well planned
.-sv
Incorporated
Members
Hotel St. George,
must
-
..'
E.
Warren
Willard, Partner of
Boettcher & Co., 828
Seventeenth
980,971,563
Street, Denver, Colo., members of
the
New
York
Stock
Exchange,
763,368,183
1,013,785,972
555,324,252
730,081,871
604,671,736
802,290,451
Willajfd jsi making his headquar¬
564,486,823
805,551,281
ters
at
the
$10,439,512,408
$13,085,203,170
fice
at
52
Collateral
offer
is visiting in New
firm's
Wall
York City.
New
Street.
York
Mr.
of¬
by
way,
may
Title
Series
&
Mortgage
and
Prudence
A-AA-3
to
18-
:
?
interesting possibilities, ac-
,
prepared
!
cording
977,216,800
740,677,942
"
York
BR-C2-F1
Series
to
Siegal
New
a
&
circular
39
Broad¬
City.
Copies
Co.,
York
be had from the firm upon
request—ask foi circular F-l.
5
->
*
■■
i
r t cs "g^. trjtfgWi fr ^ v^j 'ys?r*tr*^ggt:
i-'"
VkittatfrClfT
■
fc^SBSSBfttrt, i»i
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•
Volume
iitwah<4&iM
WWJ^r;l},fl})«
265
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4352
161
fcWhJ IJ
advertisement
NOTE —From time to time, in this
TD
DEALERS
AND
BROKERS
SERVICE
IN
SPECIALIZING
This is number seventy-two of a
PACIFIC
AND
MEMBERS
HEW
We, here at Schenley,
-i
YOHK STOCK EXCHANGE
SAN
FRANCISCO STOCK EXCHANGE
SAN FRANCISCO 4
NEW YORK 4
TEL.
TEL.
3-9DJ3
WHI
by the "once in
15DORUSS BUILDING
STREET
BROAD
"Rhinos"-In Normandy!
Co.'#il
KAIser S.
25
'
PRIVATE WIRE
DIRECT
j
PROMPTLY
EXECUTIONS
OUR
OVER
series,
SCHENLEY DISTILLERS CORP., NEW YORK
COAST SECURITIES
QUOTATIONS
HANDLED
space/
there will appear an article which we hope
will be of interest to our fellow A mericans.
ON
of one of our former
ence
D773
DO
thrilled
are
lifetime" experi¬
a
employees,
Sergeant Curt Culin. Somewhere
CoutU & fw.
INVESTMENT
in
France, he is wearing
newly,
a
red and white ribbon of the
won,
LEGION OF MERIT. The
BANKERS
news¬
just full of accounts of
papers are
Sergeant Culin's exploits since he,1
MEMBERS NEW YORK STOCK
'
Chairman of Federal Reserve Bank of
New York Outlines His Views on Freedom, Business Organization and
In "Tomorrow's Business," the
V
entitled "Tomorrow's Business," recently
published by Farrar & Rinehart, Inc., Beardsley Ruml, author of the
pay-as-you^
'
over, profits are essential to at¬
go
tax
plan,
tract new capital investment, and,
Chairman
of
finally, "profits serve a necessary
the
Federal
Reserve Bank
purpose in providing a yardstick
of management efficiency."
of New-York,
As
and Treasurer
and Company,
forceful,
cinct
his
in
suc¬
phrases
views
on
Freedom,
B
sines
u
in
s
Policy
tional
charac¬
Ruml
h i
terizes
book
as
an
as
relationship,
and
business
because
Mr,
topics.
put themselves on an
employer-employee
kindred
and
to
equal bargaining basis with em¬
ployers, but he claims there is
distortion of essential goals in the
Interna¬
and
order
,
Fiscal
Labor,
business
a
employing a vast number of em¬
ployees, Mr. Ruml's views regard¬
ing organized labor, the "union
shop" and "the closed shop" are
particularly interesting and de¬
serve
careful
study.
He holds
that workers are led to organize
of R. H. Macy
sets »forth
of
executive
an
labor
a
or¬
ganization, each as "rule-makers,"
Beardsley Ruml
contestants
for
power
conditions
of
work.
"Within the shifting frame
of pub¬
rival
are
s
concerned "about business
instrument
of authority
the
over
private
rection and decision."
Business, governments have traded, threat¬
he says, stands high "as a rule- ened, cajoled and used sheer force
maker" and as "rules and rule-| when it seemed advantageous to
makers
are
necessary" to both do so."
His chief criticism ' of
order and human freedom, busi¬ labor organizations is that they
are
not democratically managed,
ness
occupies a
high position
among human institutions, as
a and he condemns the "union shop"
as a deprivation of the fredom of
source of goods and services, and
and as a source of di¬
and power,
••
.VV.
also
"as
source
a
of
order
and
Contending that business .is one
...'.rf-v
pervasive facts of
modern
life,"
he
holds» that,
structurally and functionally, it
consists
of "an organization of
most
"the
of
people with varied skills which
property or talents to produce
something which can be sold to
somebody for more than it costs."
use
profit motive, the author
maintains, is' not the sole basis of
business.
Its particular purposes
are: first, to get things ready for
use;
second, to provide people
with
purposeful
activity;
and,
third, to give people a way to
save productively a part of what
they earn.
Mr. Ruml claims, in
its structure a business, whether
But the
small, is "a private gov¬
ernment," and a "rule-maker."
large
these
law,
He
or
rival
two
individual
the
workers.
freedom."
.
lic
or
the
public regu¬
urges
lation of unions
"minority"
in three matters,
membership restrictions,
restricting output, and
(3) the reporting and auditing .of
union funds, and he predicts that
"someday conflict will be super¬
ceded by order."
viz.:
(2)
(1)
to
industries, but he ad¬
"present system has
needy
mits that the
so
gone on
long and is so deeply
ingrained in our commercial and
industrial life that it cannot be
torn out with one
It is
and
tion
His
stands.
have
ters
the
takes
Ruml
pull."
the questions of taxa¬
fiscal policy that Mr.
on
ideas
radical
these mat¬
most
on
appeared
already
in
Discussing the problems of busi¬
ness corporation management, the
author admits, that under present
conditions, "the board of directors
print and have been expressed by
him on many occasions.
He adds
is
Ruml advocates substantial reduc¬
supreme," but
reform
he
proposes
a
whereby some of the di¬
particularly
nothing
As
book.
tions
is
well
new
in his
known,
Mr.
corporation and business
fiscal policy, Mr.
favors using the Federal
in
rectors, although elected by stock¬
taxes.
holders, would serve as trustees
represent, respectively, the In¬
Ruml
parties, such as the
suppliers; the custom¬
ers,
and the employees. - These
would be paid officials, and their
participation in establishing cor¬
poration policies, "would trans¬
form the central agency of corpo¬
rate power sp that it represents
more nearly the interests of those
whom business governs."
employment on the basis of high
national income.
He lays down
to
terests of other
vendors
or
Mr, Ruml insists that profits are
business.
double
they direct the activities
necessary-*
Profits,
to
he
purpose:
of
a
serve
a
into-channels
which
public response; secondly;
they provide
genuity
maintain
says,
business
meet
BROKERS OF
and
a
pressure
efficiency.
for
in¬
More-
budget
As. for
as a means
oi maintaining
principle that "the mainte¬
of a high sustained level of
business activity is conditioned ab¬
the
nance
solutely on fiscal policy." This is
a controversial doctrine, and many
who occupy as
prominent
a
posi¬
tion in business as Mr. Ruml will
with him. In relation to
problem, it may be noted that
Ruml admits that the creation
not agree
this
Mr.
through public works
projects has been a failure in the
30s, but, insisting that the con¬
of
Private Wires
jobs
struction
dustry
industry is the key in¬
for
activity,
maintaining
he urges
business
that Congress
recapture of France.
so as to plan
public works, and
he believes that important bene¬
fits will be yielded by such an
investigation.
Mr. Ruml sum¬
marizes his ideas as expressed in
the book in the following lan¬
must
guage:
of freedom may become the mask
behind which the love of power
of
...
,
"This book has been concerned
with business
instrument of
as an
authority and power, as a source
of
direction
and
decision.
We
business
for
in
of
business
things ready
getting
the
at
use
the
that
found
have
time
same
gives
Tomorrow, all governments
to
this
standard,
and private business, among other
Without
a
future
will
be
will organize its new
"freedom
"business
exploitation.
business"
for
freedom"
for
ten¬
The cliches
tative and uncertain.
Not
best
at
but
the operations of business
as
administered to attain its ap¬
are
people something useful to do and ' propriate ends.
provides a place where the sav- |
"Business, like other private
ings of people can be put to work. I
governments, will be expected to
"Business gets these things done
organize and to administer its
by making rules, enforcing them
rule-making in a way that is con¬
when it cam, and compromising
sistent with prevailing ideas as to
must, all
with them when it
the sanction of public
with
Busi¬
law.
ness, therefore, is private govern¬
ment since it is empowered by the
State
to
rules
for
fairs.
organize
the
and
conduct
to
make
of its
af¬
:
■
is
"Business
ment among
we
one
govern¬
Yet through
many.
must achieve personal
dignity and freedom.
"In
this
book
have studied
we
the purpose
and the structure of
rule-making' power and
business
the relations of business to other
We have identified
rule-makers.
the governed.
have
"We
of critical
examined
a
number
points which determine
the capacity of business to make
its
unique
contribution to the
freedom of those who are ordered
by its rules, among these points,
national
fiscal
policy, including
taxation and public works.
"Now, in our own time, al¬
though a common moral objective
has not yet been generally ac¬
cepted, the moral issues of free¬
dom have been drawn again, and
World
War
world
so
longer
can
old
are
has
II
divided
these
that
mands.
will
the
issues
no
be evaded.
The issues
centuries old.
Are
ones,
The business
to
be
getting
ready of things for use, the giving
to people something useful to do
the
and
the
providing of a place
savings of people can
But the rules of
be put to work.
dom is the
who
Those
business—
suppliers, employ¬
customers and
ees
attainable.
more
governed
are
by
and stockholders—will expect
in the operations of busi¬
ness
a
of the freedom for
measure
which
'governments
instituted among
"It
men
is
among
themselves
for
they .the.
men—govern¬
and
means
private—ends
alone?
of
Or
are
providing
frame of order within
a
which the
thrust! A day after
on
their
of themselves
their
a
businesses
rule-makers
businesses
agencies.
nesses
But,
as
"Rhino."
A
Omar
Bradley examined
a
war
of survival.
The victory
world
of
the
objective the achievement
individuality through
of responsible free¬
human
exercise
N.
later
week
General
the
model, and two weeks later,
the
says
dispatch, about five hundred
"Rhino" tanks
equipped and
were
were on
their way!
Aw,
on,
come
you've started
Sarge, finish what
—and
is
so
there and
over
back home—we're
come
waiting for
you
old job—or
your
better one!
'
a
'
/.
MARK MERIT
of Schenley Distillers Corp.
h•'
i. -"V ;'%•*.*
J' '{•"
' v.-i ••.'!
V
*
•.
FREE —Send a postcard or letter to
Schenley Distillers Corp., 350 Fifth Ave.,
N. Y. 1, N. Y. and you will receive
a booklet
containing reprints of earlier
articles
on
various
subjects in this series.
Hugh W. Long Study
Of Fundamental
or
of
rule-making
since these busi¬
producers and
be
must
run
as
both, they must be understood as
The business manager who
correctly appraises his role as
governor of a private state, who
knows the range of those affected
by his rules, who appreciates the
vitality in the impulse to freedom,
both.
who
what
understands
is
it, will make the
detailed
application of principle
that conditions require and cir¬
cumstances permit.!. The rate of
progress will
depend ; on~' insight
and ingenuity, p r e s s v r e from
within
and
without; examples of
and
success
conservatism
reckless
failure.''11 Stubborn
will ! b**
offset
experimentation/.
meantime,
Investors, inc.
by
In the
the. climate'of. world
Political oninion will hasten
tal
or re¬
private business
"The resurgence of doctrines of
freedom
during
World
II
impact
will
on
have
its
Inc,"
is
told
folder
new
in
issued
inescapable
an
by
W. Long
and
Company.
Biography begins with the
challenge, "Compare your invest¬
Hugh
The
this
with
ments
achievement."
Growth of $10,000 in Funamental
Investors,
tion
charted.
of
the
ance
is
the, incep¬
2,
1933, is
There follows a history
Jan.
on
Fund, in which perform¬
compared with that of
Standard
dex.
from
Inc.,
date1
&
Poor's
In¬
90-Stock
A list of the types of insti¬
tutions
holding
shares
the
of
Fund is included.
future policies of
Investors, Inc., the
folder
states, "Fundamental In¬
vestors, Inc., aims primarily for
capital growth, and is guided in
this course by interests affiliated
Discussing
Fundamental
with
the
trust
oldest
and -estate
management in this country."
v'
:A
of
section
"Biographical
Notes"; containing interesting and
unusual
facts
the
about
comnletes the story.
Fund
Investment
holdings, price and dividend his¬
tory
are
Copies
human
War
"Biography of Fundamen¬
Investors,
attractive
rule-making.
in
was
as
both
are
rule-makers and
personality
may
be
actualized
through responsible freedom of
choice?
.V
tween coalitions of national states
model
a
hastily completed. They named it
The
profit-making, productive enter¬
prises, and ordinarily do not think
tard the shifts in
of the United Nations will set as a
Sergeant Culin
advanced his idea,
men.'
dignity and worth of each human
"Today, the issue is drawn be¬
the
single
been
that most business¬
true
look
have
needed to attain
public
of
a
to find
and
ments
embankments
Normandy hedgerows—in
frame of order within which free¬
human?
instituted
thick
the
business, whereby business gets
these
things done, must set a
human
beings, all human beings,
>
Are they created equal
in their rights to life, liberty and
the pursuit
of happiness?
Are
they entitled to achieve freedom?
Do they, stand, as persons, above
race, sex, creed and nationality?
Are the governments which are
light and medium
tanks, enabled them to cut through
of business
the
per¬
four-pronged plow which,
impulse to freedom de¬
continue
where
but
it, as through others, we derive
certainly and order; and in it, as in
others,
what the
a
must .be
objective of business leader¬
ship
fected
when attached to
conception of free¬
dom, the direction of businesif.in
the
This young soldier inventor
conform
governments, must find its way.
the
con¬
through at St. Lo, that led to the
study the stabilization of the con¬
industry
Sergeant Culin's major
tribution to the American break¬
struction
timing
Forces informs the nation
ary
about
Phone LD-159
•
dom.
the
I
dispatch from Supreme Head-*
quarters of the Allied Expedition¬
BONDS, STOCKS, COMMODITIES
Home Office Atlanta
•
,
A
trt ********
rules
Regarding international trade
policies, Mr. Ruml favors, as a
substitution for tariffs, subsidies
the armed forces.
INVESTMENT SECURITIES
book of 238 pages,
a
along with some fifteen hundred
other Schenley employees, joined,'
UNDERWRITERS AND DISTRIBUTORS OF
Control, Labor Unions, Tariffs, Cartels, Fiscal Policy, Taxation, and
Public Works.
Holds Business in the United States Is in a Good
Position to Move Into the Future Harmoniously.
In
v
EXCHANGE AND
OTHER LEADING EXCHANGES
'
.
included.
of
the
folder
obtained from Hugh W.
Company, 48
City.
Wall
York
may
be
Long and
New
Street,
i
business, particularly in
the United States where
the tra¬
dition of the American Revolution
a
good position to move into the
with the re-.t
future harmoniously
newed impulse to
freedom. After
has high prestige. ,v Fortunately,
all, private enterprise is the twin
business in the United States is in of responsible individuality."
.
7
Thursday, January 18, 1945
THE COMMERCIAL & FINANCIAL CHRONICLE
266
We
Charles Parcells, Pres.
Interested in Buying
Are
Gf Detroit
Charles A. Parcells & Co.
International
Established 1910
Members Detroit Stock Exchange
,
Exchange j
Co.
of the
President
elected
was
Hartford Electric Light Co.
United Illuminating Co.
Markets and
memoranda
the an¬
meeting.
Milt
Michigan Markets
Wm. C.
639 Penobscot Building
Teletype
I)E 206
Randolph 5625
'
'
DE 167
is
c e-
New Haven
-
Cherry
President;
H a- r r y
YW
6700
K
r
e
New London
•
-.
Danbury
Waterbury
Members N.. Y. Stock
f
o
r
request
CHAS. W. scranton&co.
the
V i
new
on
n
o
Manley
Co,
;
_
Phone
,
A.
&
these Connecticut companies
on
available
Manley 7of
M.
-
DETROIT 26, MICH.
Teletype
Telephone
A.
Stock Exchange
BUHL BUILDING
812
DETROIT 26, MICH.
.
Roney&Co.
Members New York
,
,
Detroit Stock Exchange at
nual
Connecticut Power Co.
Torrington Co,
Parcells Of Charles A. Parcells ;&
Detrola
Light & Power Co.
Conn.
>
Corp.
Scovill Manufacturing Co.
A.
MICH.—Charles
DETROIT,
Aetna Life Insurance
American Hardware
Exchange
Ben¬
nett, Smith &
Crouse,
Co.,
Michigan jBrevities
u
highs—those for the six largest aggregated $2,533,090,000, as against
$2,398,250,000 a year earlier—earnings for the most part also showed
sharp increases. '•
7 •
77\Y
. w,."n v;Y:77.' 77 7V...
The National Bank of Detroit reported earnings for 1944 of i
.
j
tively.
Detroit
net
share
000
.
each in the ratio of one new
for each five of the old.
account.
capital
$1,496,880,
its
A
.
for
equal
$11.31
to
$1 266,984
account
on
080. The
proceeds of the new stock
subscription will further increase
the surplus account to $4,000,000.
Total capital stock and surplus
will total $10,363,760, which will
the Bank's
increase
normal
for
000
In
over
borrower.
and
19^9,
com¬
$1,000,-
one
any
again
stockholders
.
.
in 1940,
offered, and
were
subscribed to,
stock on a
nne-for-five basis at $40 a share.
1°42
a^d in
10%
a
canital
did
These
served
earnings
stock
not
stock dividend of
declared.
w°s
transactions
•retained
new
stock dividend of 5%
a
1944
to
and
common
surplus,
increase
total
but
capital
funds.
Y i; Y -
YY
The Industrial National Bank of
Detroit
of
of
maturity,
^oorts
$358,759.
as
for
1944
2.25%.
Mr.
known
earnings
against $345,171 in
DETROIT,
n
Faulkner
C.
partners in Stoetzer,
Faulkner & Co., Penobscot Build¬
of the firm's interests in
Washington, Oregon, Montana and
Brit'sh Columbia.
Several
For
ing, members of the Detroit Stock
General partners are
Robert R. Stoetzer and George L.
Faulkner.
partnership of
Faulkner
Co.
&
was
previously reported in the Finan¬
cial Chronicle of Jan.
11.
1942.
Bank
tional
in
a
the
to
Na¬
engage
the following firm
changes:r>er
(
.
-
Thomas J. Megear,
on
Jan.
-777777
15.
of
H.
Charles
& Co.,
firm.
Adams
15.
withdrawn
was
Both
are*
on
partnership
*
Herrick & Marshall.
Butler.
of
Interest
late
the
J.
Charles
& Co.,
of Jan. 11. Vr-W
777
Cohen in Cohen, Simonson
ceased
as
Attractive Utility
National
mon
appears
Members Detroit Stock Exchange
Stock
Exchange
DETROIT 26, MICH.
Bqhl Bldg.
Cadillac 5752
DETROIT
26
j
Battle
;
Teletype DE 75
Creek
41/2S, due June 1, 1981;
Metropolitan Edison Co. first se¬
ries D 41/2S, due March 1, 1968;
first series E 4s, due May 1, 1971,
and first series G 4s, due May 1,
and Pacific Gas & Electric
and refunding series H
1965,
Y%s. due Dec. 1. lebi.
The
York
New
Lansing
Hartford
1944
3}4s,
refunding
Co.
1, 2000, were removed
to pay dividends in
111
to at
amount equal
an
4%
outstanding
all
upon
capital stock.
"••>;Y'Y
-
4% serial sinking fund debentures
of
the United
*
■
-Y^v;;Yv;YY;Y::YY:?y
lower court which
forbade
machinery by
glass-making
any
outright sale
inasmuch as these provisions ex¬
tend further than what is required
to dissolve the combination and
other than by
combination
prevent ^further
like character.
7 License
to
allowed
provide
to
$11,596,108
over
brings
which
1943,
increase
an
Trust
the
total
in
Dec. 31,
total
to
$119,884,995. Deposits were $110,839,453 against $99,496,448 a year
increase of $1,343,005 or
ago—an
than 11%.
more
Book value per
30.
1944,
share as of Dec.
$48.77 compared
was
with $47.50 at the end of
;,;YY' Y"i'.
'!*
1943.
*!'
-
During 1944, policyholders of
in
aggregating
premiums
of
crease
than
$29,400,000
or
r
12% greater than the pre¬
With the exception
vious year.
of
•
of
'*
the
in
decrease
boiler
and
reduced
lia¬
general
lines
due
to
decline
in fidelity and surety premiums,
all
rates,
of
types
and the
insurance
considerable
showed
increases.
"The Confident Year"
The
Bulletin
latest
Strauss
issued
entitled "The
Bros,
by
Con¬
fident Year" sketches the outlook
for
eight vital industries and re¬
Cop¬
views thirty-four securities.
ies
had
be
may
renuest
uoon
from Strauss Bros.,
New York City.
32 Broadway,
Interacting Utility
agreements will be
stand, modified to
Ira Hauot & Co., Ill Broadway,
royalties
New York City, members of New
uniform
for
restrictions as
without any
production,
price,
or
other
York
Stock
Exchange and
exchanges, have
of
vpig
discriminatory features.
Copies
and
memoran¬
issued
an
this
of
by
memo¬
interesting sum¬
of I, C. C. Forecasts for
Traffic,
may
1947
be had from
request.
N«w Whit*. Nobl* & Cn.
firm
name
RAPIDS,
MICH—The
of Schouten,
White &
Co., Michigan Tru^t Building, has
been
Co."
indicated earnings
issued;
General
the
other
rnal-
an
Gajs & Elec¬
Corporation.
Copies of this
interesting analysis m&y .,be had
from
$16.31
a
changed to White, Noble &
v
First
National
Bank
of
Hartford
the firm
upon
request.
4.53 '
4-41
National Bank
2.53
Phoenix
Bank„„.—
earnings
were
*27.01
16.49
assets
of
Associate
Boston
Stock
•
Members New York
Curb
Primary Markets in
$28.82.
Phoenix
State Bank were $94,401,030 as of
Dec. 30, 19447 This represents an
increase, of $4,663,221 over Dec.
31, 1943.
Deposits advanced ap¬
proximately 5% from $84,719,008
at" the end of 1943 to $89,022,965.
Book value per share is $279.80
Total
and
Exchanges
Exchange
'•
State
"Reported
York
1.76
&
j
ItitoTiiKits'
r
New
-
Company
Trust'
Tni
Members
Hartford-Connecticut Trust
Hartford
,
$265,^
in-"
more^
This represented an
900,000.
Hartford-Empire Company,
modified the decree
disposition or transfer of any
and
•
Hartford-Connecticut
showed
assets of
The decision
the
Freight Co.
1959.
ends the receivership
case
of the
States
due December,
bility
Y. *
YYY'YY Y:> *
Trust"
Co. of
purchased
recently
the Travelers Insurance Co. pHd
Harlem
&
for failure
least
7Y7777777:7Y
The Travelers Insurance
first
$18.69
to
the'situation
GRAND
Penobscot Building
1051
1, 1949: Philadelphia, Balti¬
& Washington RR. Co. Gen¬
eral series
Co.
Electric Light Co,
Y';7 YY;Y.YY'YY #Y? x'Y;* .fv ;v,
Co.
more
directors
elected
been
have
the
July
|
j
1943
Vilas & Hickey upon
Member' Detroit
Gill
of the Hartford
&
Burlington
Chicago,
1958;
1,
1944
Rail
Allman, Moreland & Co.
>:!«!<!
Ralph D. Cutler and Thomas D.
Quincy RR. Co. Illinois Division
first 3V2S, due July 1, 1949, and
the Illinois Division first 4s, due
attractive at current
mary
& DOLPHYN
an
re¬
like- ?
'
Transcon¬ ;YYY; ;Y7'7 >77^*5YY;-.9Y Y-" * ' ■: 'Y
Short Line 4s. due Julv
The year-end balance sheet of
Preliminary
&
randum,
Request
$216,790,007,
all-time high.
are
sources
wise
Total
high.
Railway Co.
Fe
of four local banks follow:
according
on
changes.
COMMON
Mercier, McDowell
been called for re¬
Atchison, Topeka &
have
legal,
demption:
& Light Com¬
Power
Hickey, 49 Wall Street,
New York City, members of the
New York Stock and Curb Ex¬
BROWNHOIST
deposits, which
$206,744,926
in
tric
Vilas
INDUSTRIAL
on
Mar¬
11%
all-time
through Putnam & Co. $2,000,000
following issues, formerly
means
special part-r
in Luke, B°nks & Weeks, re¬
formerly Sales Man¬
of H. PL Butterfield
cBulletin
1,-2003.
Russell
business.
principal of the new
||
The New York Stock Exchange
Jan.
been
has
in
Building
securities
H. Goodrich,
a
offices
refunding series F 3%s,
due Apr.
of the
nont
JACKSON. MICH.—Investment
Comoany
,
shall to act as alternate for Pieiv
Co. Formed in Jackson
with
General
NYSE Firm Changes
Privilege
formed
an
4
tired
investment Securities
:
first and
Corporat:on, leaving that com¬
The decision handed down by
pany to Join
the staff of H. P. the U. S. Supreme Court uphold¬
Pratt & Company in December,.
ing the Government in the "Glass
has announced
Formation of the
was
Western
the
of
he
years
nearly
Co.
Nashville RR.
and
due May
partner
resident
was
charge
Exchange.
Stoetzer,
Louisville
in
1933
.
officer
MICH.—William
Jan. 11,
1945, are as follows: Additions:
Chesapeake & Ohio Railway Co.
sixth equipment trust
l%s, due
serially
to
Nov. 15, 1954, and
the time
at
.
&
ings Banks effective as of
Railroad
levels
request
&
of Legal
the List
Bank
National
Hartford
Trust Co. reveals an increase of
brings the total to
Investments for Connecticut Sav¬
t^at firm retired from businers in
dum
Stamping Co;
and
1919
in
Bryan
soec;al
ager
Report furnished on
Logan
with
connection
He came to Seattle from
Chicago office of Logan &
the
Martin and Percy P. Newman are
Is
National
years.
Bryan.
to
to
V
;
Of Stoetzer,
ings on the
stock amount
for
McBurney is probably best
in the Northwest because
his
of
Martin, Newman Members
the previous year. Available earn¬
common
according
from
1.25%
40
over
deal¬
securities
investment
in
ing
been
has
'
Securities
.--i; ft
*,'!
and
Fractional
two
transfer
to
>
Erin
basis,
yield
a
announced
been
issue
This
present surplus
from $2,494,800 to $3,002,-
mercial loan limit to
successful
was
Warren
School
District No. 2 (Macomb Count
ty), Mich., bonds, paying 100.15
for a 214% coupon. The
bonds,
due serially on Oct. 1 from 1948
to 1950 inch, are being reoffered
$105,000
/Townships
share,
$10.28 a
the
increase
Co.,
&
of
(;
1943.
for
&
bidder for the recent new
per
or
year-end transfer of $507,280
undivided profits to surplus
wiT
Smith
of II. V.
the
,—an
*-'4t
_
Changes * in
tinental
WASH.—J. Forbes
McBurney, whose admission to
partnership in H. P. Pratt & Com¬
pany, Hoge Building, has recently
Crouse, Bennet,
and McDonald,
Co.,
Co.,
&
bursements dependent upon the
year's operating results.
Santa
In Investment Business
1943.'
composed
group
Moore
ended
year
account has been authorized.
In
A
a
against
share
'
.
.
'W^-f'YY
^
McBwrney Forty Years
.
Satlley
1944, the Detroit Bank
net profit of $1,511,-
Dec. 31,
showed
from
-
report
^
v
62140 quarterly
a
on
basis, with extra dis¬
dividend
The
SEATTLE,
stock at par value
share, and the remain¬
adds $997,920 to surplus
This represents a total
and surplus increase of
ing $40
554,
T. Ben¬
Edward
of
Jr., Clarence A. Horn, Joseph
Hinshaw, Charles A. Kreidler and
Sayings Bank reports
profit for 1944 of about $273,or $2.73 per share, as against
$271,000 or $2.71 for
capital
of $20 per
In
committee for
nominating
consists
White,
Auditor.
nett
United
y
offering price of $60 'per
adds $498,960 to the com¬
share
The
1945
named
Prevo
&
Bower
net
a
of
Bower
Edward
with
profit
of
$1,483,730,
equal to
$24.73 a share, as compared with
1943 net of $884,962 and per share
149,688, with the right to pur¬
chase the additional shares at $60
to
mon
Davis, McKeen &
appointed counsel,
•
of
The
Wright,
Cudlip, was
son, A
number
,
shares
■
P. Davis of Dickin¬
approved an increase
Raymond W. Reilly.
• of
outstanding earnings of $14.75.
V
i:-V-V ^
* V:; *7^7:77777.77 > '
common
from 124,740 nVV'V7'V7 *
have
the
>-'vYY1.
the
of
Stockholders
Bank
in
#
*
shows
last
31
Dec.
C.
Edward
stock
new
ernors.
■
-
Examiner
,
Manufacturers
the
of
,
/
spectively.
Raymond C. O'Donnell of R; ;iC.
O'Donnell & Co., along with Manley and Parcells, were elected to
3-year term on the board of gov¬
National Bank of Detroit for year
ended
moderately, he said.
*
V>;.
sj:
.
Report
Parcells
A.
Charles
Y;v.
...
:
department revenues and
other fees for services, increased
;
ai
fees,
vestments. Loan commitment
trust
Connecticut Brevities
s-
n'd
a
r
,
$4,242,382 or $4.24 a common share, as against $3,250,633 or $3.25 s
The bank! «»to $7.18 a share, as against $6.90
transferred $7,500,000 from un
in 1943. • §■;;*■" > * '- , * i V
divided profits to surplus, thus
increasing the lending limit to
Commonwealth Bank for year
any one company to $3,750,000.
Walter S. McLucas, Chairman of 1944 shows a net profit of $889,of the
board, told stockholders 114, equal, after preferred divi¬
that gross income for ,1944 was dends, to $17.21 per share of com¬
mon.
Comparable figures for 1943
$2,190,958 more than in the earlier
were $889,865
and $17.17, respec¬
year, due largely to the increased
in¬
r,
a
77 At the annual meeting on Feb. 13, 1945, the stockholders of the
Aetna Casualty & Surety Co. will vote-on a'recommendation of
Fred O pip a t the directors to increase the capital^ from $3,000,000 to $6,000,000.
were renamed
This would be accomplished through the transfer of $3,000,000 from
E x e c u t.i v e
>n (vprvi'tfli
t>ie payment «f a stock dividend of one addi¬
Vice- Pre$L,
tional share for each share now held.
T - 1
"
dent and Secuie
plan is approved, the -——
:
—
The
year-end
statement
of
directors propose to place the
r e t a r y i;, ajl<l
in the previous year.
iunds available for loans and
Treja
e
1
k:; C,
Wickey
and
all-time
commercialjieposits of Detroit banks arising to new
With
r
C
the
against $262.80 a year
ago.
Hartford and
Connecticut Securities
Hartford
-
7-3191
New York:
BOwIing Green 9-2211
Bell
System
Teletype: IIF 365
Volume
finds
instead
of what he now has to pay."
"We are moving more and more
lot
What Will the Market
buyer
he
stocks
these
of
-
must pay only one tax.
stocks
Sis
19*57®B
Do In
be
(Continued from first page)
fright 7work ratherthan banking
hours is becoming the requirethe
of
jrrfent
Brokers
make
to
Customers'
Street.
must
production and engineering
to have usurped top place since
this time. There is no doubt that
decisions, to advise and
manage. B
1
'7"'' 1
„
/ 1
'"This new attitude makes stock
to
far the other way
swung too
opportunity ,• is
brokerage as a career as much of bright, Perhaps We won't see the
a
public service as a profession Expansion anticipated in televi¬
such as, for instance, medicine. sion-and plastics and airlines but
We hear a great deal about the neither will we have the human
good doctors do for humanity. Competition for jobs."
Wall Street is still
sidered
much
a
popularity
the
and
con¬
mercenary
more
prices have been," Mr.
added, "and I could think
of f a thousand reasons why one
should not own a bond which sells
Actually, sound in^
vestment helps to pay the doctor
bills
and
to - put r; the
children
occupation.
through college. Bad investment
indigestion and sleepless¬
ness, and worse.
There is every
reason why the broker who looks
at his work the right; way can be
.
creates
proud of his job."
Referring to the dependence of
the investing public on the ad¬
postwar
]
•
at
Taking
think
and
by
large,
Washington
cheaper than the
men,
it will lift the
dividend-paying
stocks to that part of the investing
public in the lower income brack¬
I had
ets..
vice
of customers'
assistance
and
Mr. Loeb said that "recently
an idea of writing a popu¬
lar book to reach a reading pub¬
lic of ten or fifteen million peo¬
ple such as readers of the Reader's
Digest, Saturday Evening. Post,
book
I wanted to write this
tions.
for
such publica¬
and
Life
Liberty,
Street
Wall
outside
people
of their
who devote the main part
jobs and who
do something about the
their
time
to
have
to
inoney they
own
What could I
save.
in view of my own experi¬
ence, to such people about how to
take care of their money?: .
say,
"I
right¬
to the conclusion,
came
wrongly, that to write a text
book and say: 'Don't buy a bond
ly
or
the
unless
times';
many
without
ord,'
so
'Don't buy a stock
or,
which
of
most
I
understandable.
not
are
myself
keep
looking around, trying to find an
answer to this whole question of
wise investment.
Maybe someone
here, when we get around to our
forum, will be kind enough to
.give
«or
idea better than mine,
can use, but I have
me an
idea I
some
in
increase
There
in
cess
the
odd-lot
no
getting frightened
about this or that and selling some
stock
which tends to keep the
technical
general level of all stocks
go
higher.
As regards
groups or issues are the
most attractive, my feeling is that,
broadly
speaking,
the
aircraft,
steel, machinery, copper, motor
truck and rail equipment stocks
are
cheapest.
However, there is
always the danger that some of
them may be low with good rea¬
son
or
may stay low for a con¬
siderable length of time.
in fact, the
right
in some
cases, investment counsel.
That
was
my number one suggestion.
I'felt that, just as one goes to a
doctor, so should one go to an
expert in Wall Street.
I tested
I
man
mean
customers'
broker,
this out with
said
who
where
"I
number of people
a
would
I
with
or
not
get
any¬
The
one
that has a broad
which enjoys wide
group
and
market
7
swings and which has not moved
is the steel group. The steel stocks
not
are
beneficiaries because
war
structure and the tax
structure have held their net down.
the
price
the
After
which
tors
earnings could
war
be
but there are many fac¬
enormous
may
this pre¬
is that present
upset
for steels discount 7 the
hence, those with plenty
money
should
own
some,
I think the worst that can
prices
worst;
as
want to
general
leave these
thoughts with <you," Mr.: Loeb
continued, "because of the new
responsibilities
a
we
have here, as
result of which I think that the
next
few years
very,
are
for
well
very
going to pay
those of us
in the Street who more and more
think
of
ourselves
vestment
advisors
salesmen, order
thing else.''
"'Wall Street
as
as
being
clerks,
an
in¬
than
rather
or
any¬
A-l Vocation"
Speaking of the vocational op¬
portunities in Wall Street houses,
and comparing present conditions
with conditions in this field" prior
to 1930, Mr. Loeb remarked that
-'Wall
Street
become
when
men
less
such
came
a
as
a
vocation
has
popular since 1929,
high proportion of
to
work
here
in
the
we
before
the war,
but lower prices
prices today in the black
think
groups
see
five
we
current over specula¬
any
If there is any, it lasts for
tion.
six hours and then corrects
or
I
think that by and large
going to have good earn¬
are
ings. I think they are going to
be capitalized higher than at pres¬
ent and I think that yields are
going to be lower than they are
now.'i
•
"As
tractive
"there
the
road
stocks," he said. Continuing
that "anybody can see
added
he
lot of railroads were earn¬
that
a
ing
good
which
are
"
the most at¬
Loeb said,
such groups in
stocks," Mr.
are
many
We
market.
have,
broadly
speaking, consumer
goods and
capital goods issues. As a general
rule we know that capital goods
cheaper because they are
worth less, or because they are
bargains? In the groups of stocks
looking statistically cheap there
are the aircrafts, railway equip¬
they
v
to be
•■*
■
•
B'B;
any
V:BBBBBB
"In
•
aircraft
is
there
know
we
tremendous
a
of plant ca¬
excess
and* the various factors
there are pretty well understood.
Personally I. think the aircraft
stocks are still cheap, and whether
one
buys them or not depends
upon the individual situation in
a given account.
If I had an ac¬
count
of
$25,000 in mind, for
pacity,
which
I
much
do
have
aircraft
an
account
an
believe
not
in
of
craft
rise
has
is
had
not
lost favor
never
as
had
I would
percentage
a
is
it
that
the others did.
rather
passed them by on jet pro¬
pulsion."
Loeb
the
to
Johns
next
since
sold
at 12. Since that time the general
market
is
higher, and I think
Radio
the
"I
am
of Johns-Manville," he
said, "because I think that prac¬
tically every one of us has cus¬
tomers
who have been holding
thinking
nothing
done
of 1943, when it
most of the radio issues are
a
its
group,
prospects.
and with its post-war
I have carefully tried
after
the
to
war,
and it seems impossible
can earn less than
that it
me
$1 to $1.25 a share, which should
mean
15 to 25 for the stock, as
earnings of Radio Corporation are
always very highly capitalized
the
market.
I
think
probably
would
also that
have most
after
rails
troubles
their
of
the
mained stationary,
changed."
titude
Dividend
certainly less than in most com¬
panies of the group."
"Forecast for 1945"
Clement, Curtis & Co., 134 So.
La Salle Street, members of the
New York and Chicago Stock Ex¬
for
have prepared
change,
of
"Forecast
for
reference
ticular
that
a
high
"really
grade invest¬
is
Its capitalization
ment- needs. ;
extremely small.
of
tives
Clement,
stock
Johns-Manville
basis
might
many
of such
lesser
on
a
percentage
much as
quality shares and,
up
go
as
ida." Copies may
"the
that
these! securities for sale
be had upon re¬
circumstances
solicitation of an
securities. The offering is made only by the Prospectus.
.
i
..•
B;:.Bi-*B
~
or a
:' 'B. B B:B
;
\
-•B B.V BB
BB:BBBB::B^-BB" :B,B BB:B5: BBB:,BBBB-BB. • BBB-'BB B BBBB
:;.v
■
BbBbBBB'B • .BBB-B,,B. B-BB -B:B'-B-B-' VB''B.'B:
American Phenolic Gorporatioii
SI,500,000 5% Fifteen Year Convertible Sinking
Dated December 15,
on
•
yields
to
them.
,
'
..
of
the
dividends is
and
345,000 Shares Common Stock
Price $10 per
share
the small, odd
buyer will be higher, in
case
he is going to buy
lot cash
which
Due December 15, 1959
1944
remarked
going to mean a great deal to the
small, odd lot- cash buyer.
It is
going to mean that stocks are even
cheaper than they appear now,
because
Fund Debentures
Price 100 and accrued interest
and
elimination
taxation
double
and
Copies of the Prospectus may be obtained from the
undersigned.
\
"The small, odd lot cash buyer
is pretty
important. The number
American Telephone,
Van
of shares of
for
example, bought during 1944
through odd lot houses was stag¬
efnot
the
odd
January 15, 1945
Co.
quest from L. H. Rothchild & Co.
of record only and is not, and is under no
VfBK .Vv■% BB-B-;B-B
as
prices
&
"Johns-Manville," he continued, from Clement, Curtis & Co,
a perfect
example of a stock
almost ideally suited to a split-up
:
Seaboard All-Florida
some day, because there are only
L. H. Rothchild & Co., 52 Wall
about 850,000 shares of its stock.
It is right on top with research Street, New York City, have pre¬
for new products.
It has bright pared a resume of "The Present'
management.
I
believe
that Status of the Seaboard All-Flor¬
Bv;
Transactions
Curtis
Copies of these interesting predic¬
tions may be had upon request
"is
B'BB,,7:'"VB'''BB-BBBB■
B
reprint
a bearing upon Investment
Policies," an address made by Ed¬
'blue .chips.'
I think that Johns- ward P. Rubin, partner of Secur¬
Manville will do much better for ity Supervisors and President of
them marketwise and that there Selected American Shares, Inc.,
is a logical switch here.
I think at -a weekly meeting of the part¬
Johns-Manville
has
everything ners and registered representa¬
pointed to an easing
one reason for ris¬
Loeb
of taxation
ing
until public at¬
a
1945, with par¬
to those factors
having
Odd-Lots
BBb Bb'^'B
Mr.
the war.
just re¬
in
the risk of
purchasing it now is considerably
less than with most situations and
most from, the war, and
they
higher.
price basis, I think Radio iji
out of line with the market and
On
years—maybe Ameri¬
can
Telephone, Eastman Kodak,
duPont or any of the so-called
stocks
has
summer
attention
called
stock.
Manville
re¬
tive leaders.
speculative possibilities of
-
his
saying
priced shares.
I see chances for
large profits in Radio, to mention
my pick of the popular-priced ac¬
Secondly, they had a little bad
break, which I think they are go¬
ing to overcome now, in the fact
that the Government apparently
Mr.
by
to estimate Radio's business
One
twofold.
that
that "I think
really a high-grade issue like
Johns-Manville will perhaps show
as much percentage profit as some
much
more
speculative
lower
United Air¬
reason
concluded
Loeb
marks
these stocks
good rises except United
The
when
come
Market"
"Best in the
Mr.
B "Practically all of
have had
does
really fair price-earn¬
ing ratio, I think it will be very
well worth while for people to
;
have aircraft stocks.
a
make this switch."
too
If I
stock.
$250,000,
time
the
it sells at
diversification, I would not
NEW ISSUES
:VBBBBBB '
;'v:
be
of greatest interest to
groups
the steels and the aircrafts.
construed to be an offering of
offejr to buy
I think the two
ments and steels.
This advertisement appears
.
Are
they really cheaper or not?
when
Johns-Manville is split-up so
benefiting
and
money
;
•
.
to
-
stocks,"
and
background to hurt the long pull
I do
of
"The group
prices
higher
outlook for common stocks.
"We are now getting readjust¬
various
whole
this
higher income will take care of
the profit margin, so that I cannot
see
anything in the fundamental
not
goods stocks.
I think the first
question we have to decide is: are
come,
going to have higher prices
things in general than we had
to % them
is
that they
just mark time. The risk is small
possible gains are great.
in
to
are
happen
'banks, underwriting and broker- gering. This had an enormous
age houses.
The records of the feet on the market, but I do
Harvard University Graduate think it has had anything like
School of Business Administration effect it is going to have if the
waf, for some time
the
—the
j.:
other
to
things, f I do not mean in terms
of inflation.
I mean that after
itself.
Be Attractive
relation
in
stocks
"that
^audience,
cheap
of
Nevertheless
it.
his
told
were
stocks."
common
few minutes ago," he
a
schedule
Mr." Loeb pointed out.
which has been most
readjusted in the last few-weeks,
as we all know here, are the rail¬
of
"I said
I
the right kind of men to
handle
outlook for
the
markets.
ments
By the right type
that it
than real
"Steels" May
inflation in re¬
Mr. Loeb
would not "hurt
on
stock .prices,
to
thought
for
should take the time to pick out
their accounts.
Commenting
which
of
'
_
,
"The
have found.'
"The only solution I could find
was
to tell people in this book,
if I publish it, or if someone else
publishes it, that, instead of study¬
ing the securities market, they
7.
lation
prices than are consumer
Aircraft.
Inflation
should
diction. My feeling
i
"
position strong.
other so¬
lution
than
the following one
which is the nearest approach I
been unable to find any
for
buying
signs of ex¬
market.
People are
are
question.I think the factor which
will govern the answer to that
question is what the particular
psychology of the minute may be,
and that is pretty hard to predict."
great
a
mean
continually
lots of such text
are
should
This'
cash.
totally use¬
would be
There
books,
covered
accomplished
effective yield of
ten-year dividend rec¬
a
etc.,
less.
is
interest
is
or
you
this
If
dividends.
are
us
double
eliminate
to
of
I
principally
eight months from now.
get to the point, of
timing, I say that stocks will be
higher in the long run. But as to
whether they will be higher next
week or eight months from now
I think nobody can answer that
When
pormal price of most other things.
There is a very strong trend in
taxation
of
most
six
pen
cheaper
still
are
bonds and
that
factors
interested in what is going to hap¬
the stock market will do in 1945,
Mr. Loeb said: "Common stocks,
than
•
might affect the stock market,
the subject of what
up
;
Considering;, other
;;
..
above."
or
par
j Continuing, Mr. Loeb said: "In
j- Stock Market Prospects—1945
t
bond
Loeb
too many beginners came to Wall
Street in 1929, but the pendulum
has
.
qs
Show-
themselves
equip
investment market,
will probably
stabilized at high prices just
an
that for some years
cheaper, relative to 1936
are
and 1937
.
towards,..:
267
FINANCIAL CHRONICLE
THE COMMERCIAL &
Number 4352
161
Alstyne, Noel & Co.
THE COMMERCIAL & FINANCIAL CHRONICLE
268
Thursday, January 18, 1945
ADVERTISEMENT
OUR
REPORT
PRIMARY MARKETS IN
BANK and INSURANCE STOCKS
V
\
i
•'^
Company
This proved a rather dull week
Huff, Geyer & 'Hecht
Street
Wall
67
WHltehall
Post
10
Office
135
Square
S.
CONNECTING:
SYSTEM
WIRE
LOS
LOUIS,
ST.
PHILADELPHIA,
NEW
YORK,
ANGELES.
SAN
SEATTLE
TELEPHONES TO
Enterprise
HARTFORD,
PORTLAND,
6011
Enterprise
PROVIDENCE,
Enterprise
come
7008
the
on
serials
issues
a
very
their
performance was relatively poor, as the following figures show:
12-31-1943
Bests'
Index
Dow
Industrial
Jones'
Banks
York
New
Casualty;
(20
12-30-1944
192.9
,195.0
349.7
363.4
__
.135.89
Average
(American
Banker)
.
3.9
{■ 12.1
-20.5
state
Comparative
:
and
,
and therefore is
provisions of the
Sherman Anti-Trust Act, has acted
as a damper.
Another depressing
has
factor
the
been
rise
in
Pessimism
based
tors, however,
particularly in
that
such
on
1944
Members.
fact
Bell
higher grade insurance
are
essentially long-term
stocks
:
assets
mains
income
have
not
been
only
but
indications
that
are
and
this trend is
of
8.7%.
anomftJ$€s^tuation:
54%
-
.20
7%
Baltimore''' American*
Shippers
Fire
Great
American
Hanover
Insurance
of
Merchants
National
&
-
____
'
30%
Paul
Revere
Phoenix
St.
Paul
Washington
;
110%
F.
24%
23%
87%
:'y •>
59%
-
^
-j
• :*
•
,
36%
Sv
—
.
+
—
73%
£ ',^r
,
34%
.
rfe
511/4
-
3.3
the
was
St. Paul
reduced
annual
dividend
elimina¬
tion j)f extras, suffered a decline
of -12:8% and 16.2%, respectively.
Among casualty stocks, which
are
through
not
shown
in
the
table, American Surety de-
on
at
lower
an
even
3.2
8,1
This
week
brings somewhat of
Co.'s
Power
water
new
mortgage bonds-, for ' which
bidders were called upon to fix
the coupon rate.
: > V
2.1
a
of
value
of
'
(and
3 V6% coupon.
apparently
all
3
'
fixed
Its competitors
a
higher
had
for
bonds
3%%
were
and
,
guaran-
v
:
-
■
.
64 New Bond Street, W.
v
//..
■
'
Charing Cross, S. W. I
Burlington Gardens, W. I
'
-
i
8 West Smithfield, E. C. /
c*
V;
OFFICES
Bishopsgatc, E. C. 2
49
obliga-
I
securq
liabil-
$8,550,379-45
.
assets
t liabilities
and
pledged
to
(including
securities
sold
notesand
under
>
Associated Banks:
re-
c,,;
pledged to qualify for
of
exercise
corporate
fiduciary
74,750.00
.
,:v".
or
"i-
T
:
se-
•
r
Ltd,,
| .Glyn Mills & CowtWs-.A:
U
and for
powers,
other than to
Williams Deacon's Bank,
v.
liabilities
cure
£115,681,681
;-.V•
purchase-agreement)
Assets
TOTAL ASSETS
y
se-
other.
and
bills rediscounted
•
150,372.00
TOTAL
Secured
scheduled
$8,775,501.45
and
Northern
■
*'
' :
0:
;./
V;
Deposits secured by pledged
,assets
r
pursuant
to
preferred
provisions
Bankers
Head
is
now
indicated that sponsors and
3.5
will face each other over the
auc¬
aggregation, headed
by Halsey, Stuart & Co., Inc., who
pushed the successful fight for
ing
value,
discount.
above
are
The
list
selling at a
only stock in the
now
which
is
priced
Branches
In
India,
Bishopsgate,
Burma,
Ceylon,
Kenva
Colony and Aden and Zanzibar
$10,665,074.25
Subscribed
Capital
Capital
Paid-Up
I,
WILLIAM
Comptroller of
the above-named institution, hereby certify
that
the
best of
D.
above
PIKE,
statement
is
to
true
the
Reserve
The
WILLIAM
PIKE.
D.
conducts
every
description
banking and exchange business
also undertaken
J-Directors
FORD,
C,
MAGNUS,
Slaight Co. Formed In K
G.
by
railroads, is already in process of
formation to participate in this
business should it develop.
.
is
expected
group will be
Co.
by
and
that
a
formed,
indicates
road
its
Morgan
associates.
second
the
position,
once
Stanley
The
&
refi¬
nancing is expected to involve
replacement of some $50,000,000 more of the general mortgae
series I 3%s due in 1967.
Wilmer
fices at 135
Broadway, New Yor
City, to engage in the investmei
business. Mr, Slaight in the pa
was
officer
an
of
Barr
Bros.
<
Co., Inc.
Canadian Market Receptive
The
New
Canadian
York
pears
mood
as
market, like the
investment field,
to be in
far
concerned.
Consolidate
Slaight has forme
Co. with o:
G;~ WilmerJ Slaight
A
Groups to
high
-
KORELL,
competition in security sales
It
©I
Trusteeships and Executorships
„■
^Correct—Attest:
W.
£4,000,000
£2,000,000
£2,200,000
Fund
Bank
knowledge and belief.
my
headed
One banking
in
London, E. C.
TOTAL
PERCY
opponents of competitive bidding
Government
26,
•
2,061,331.GO
Railway
keen since it
the
Office:
but
pledge of
big
be
to
Kenya Colony and Uganda
$8,603,742.65
assets
SUMNER
And here again the com¬
of INDIA. LIMITED
t-
under
law
of
not secured by
for
•.
re-.
quirements of law__
Deposits
NATIONAL BANK
li¬
preferred
abilities;'
•
a
ap¬
highly receptive
as
new
issues
are
•
large syndicate of Canadian
underwriters and dealers placed
issue of $18,761,000 of Shaw-
relative to liquidating value is St.
Paul Fire & Marine with a ratio
headed
inigan Water & Power Co. first
of 1.17;
and
mortgage
1944
premium to liquidat-
?
(book
itles
or
debentures, the bidding was much
closer, the winning bidder who
also took the bond offering 100.46
months.
ago.* Even
:
secu-
loaned)
cure " deposits
in mind since their bids
petition should
2.7%'
LONDON
ov
MEMORANDA
assets
Scotland
for the $4,500,000 issue to carry
1.4
Home and Franklin, which usual¬
ly sell at
■,"
.
consists
par
:
throughout
•
The winning group bid 101.08
4.1
ratio" to
year
total
*
tions, .direct
30-year
first
;!
Branches
$32,742,167.17
__
capital
with
pledged
to
deposits and other
duplication in the sale of Tide¬
a
4.8
Dec. 31, 1943, and
a
stock
'teed,
;»
refunding opera¬
Northern Rail¬
way looms as likely to be carried
through within
the
next few
year-end liquidating values which
when reported, should be well
above values of
ACCOUNT
Government
S.
Other
Pennsylvania issue.
by Royal Charter 1727
OFFICE—Edinburgh
&
tion by the Great
clined from: .61 % to 61, a loss of
0.4%. Oh the'other hand, Fidelity
dating value
Incorporated
value):
U.
unusual
spread between hanking bids-for
the
Royal Bank of Scotland
AC¬
institution's
rities
seems
competitive bidding.
had
.4*
494,405.53
$2,244,405.53
CAPITAL
Pledged
Y.
750,000.00
LIABILITIES
"This
18, N.
ACCOUNT
CAPITAL
•TOTAL
to be borne out in
we
York
■
:v
4.5
+
New
$30,497,761.64
HEAD
.
tion -table.
disbursements
above
of
week
Another
1.1
a gain ;of
22.9%; second was Boston'with" &
Deposit (/appreciated
10.2 %,
12.1%, and third, Insurance of Closing at 162 compared with 147
on Dec.
Noijttt America, 10.5%. Maximum
31, 1943.
The 35 fire insurance
losf ivas sustained by Merchants
stocks, as
& ^Manufacturers, with a decline of Dec. 30,
1944, were selling at
of "25.8%,
Home and Franklin, an average ratio of. 80%.. of liqui¬
however
field
500 Fifth Avenue
(not
COUNT
most
T—
—
FireJ& Marine, with
which
the
Last
Great
+ 22.9
V,
__________________
performer
TOTAL
Spreads
—.
.
126
49.%
—
—
: 89
^132
United States Fire
Priize
—
34%
Securiti
Average
—
101%
____
fair way
a
8.4
—11.8
_
___
Providence
in
THE ECONOMETRIC INSTITUTE
subordinated
profits
C.
"
7
-
___
Those
still available.
are
Price $5.00
159,805.25
.___•
fund
Undivided
of ac¬
3%s, with the next bidder of¬
fering to pay 100.159.
■
—
22%
_
of
few copies
$1,000,000.00
Surplus
opera¬
Leaders,
$30,337,956.39
LIABILITIES
—10.6
46%
14%."-.'
1,387,094.89
etc.)
CAPITAL
for
-r—25.8
•
29%
46%
___
:
175
23 %
Pacific: Fire
10.5
7%
_
'
+ 10.5
58%
_______
.
5.5
—12.8
V
,
5%.
.
191
recent
and Loss
INCORPORATED
,
"worker,"
a
A
the
over
Decline of Industry,
Adjustments of Costs.
5,146,793^29
_
Capital*
reoffering at 101.48.
In the case
of
the
company's $1,000,000 of
1.9
+
8 %.••.•-'5
8%
__________
;
+
89%
-»
po-
obligations shown below)
Except for
superstitution
that
things run in series of three,
The
.7.1
+
58%
_
■
as
from
Another
1.7
+
.
_
Hampshire
Fire
28
6.3
—10.5
30
-
_____
New Brunswick
York
v...
27
7%:
'y
develops
The
—16.2
105'A
9%
-
National Liberty
National Union
New
'7
0.5
+
.
8%
32%,.
81%
-
___
"
•
3,244,613.60
4,465,257.49
(certified and
liabilities
TOTAL
of new
3%%
bonds, and the second highest
bidder sought the issue at 3%s
at a price of 101.02.
+ 12.1
+
45%
99%
Manufacturers
New
1.
-
26%
-
___
Fire
68
28
-
—
North America
care
and
Demand
448,674.18
common
were
8.0
—
24%
V
9%
Home Insurance
Insurance Co,
it
recognized
coupon
4.9
—
50%
1 '44%
,''44%
______
Knickerbocker
Other
Demand
States
and
checks,
DEPOSITS
the market is
of taking
Joint
TOTAL
tions.
a
:
46%
-
64
£
3.3
—16.9
,7
7%
29%
___
Hartford
'
2.7
+
-
•
.16%
46 ^
_
ii
_
Globe & Republic
+
23%
.
5.9%
—
76
50
_
!
% Change
80
_
Insurance
price of
628
________ _
Association
:
87
_
Continental Insurance
Fire
big issue
Products,
Capital Goods, Factors Influ¬
banking institu¬
officers'
purposes
560
-
Insurance
Glens Falls
average
51%
' •«
-
:
22%
Equitable
Franklin
an
12-30-1944
•
74
-
.
of
Other deposits
in good shape and
as
cumulation
—Asked Price
_
Alliance
Fidelity-Phenix
show
1944, compared with Dec. 31,1943,
shown in the following table:
Agricultural
&
stocks, for
average de¬
The asked
12-31-1943
Bankers
fire
is
.
Boston
during 1944
variable.
A list
each stock as quoted- on - Dec.;-30,
•
American
stocks
stocks
States
Gasoline, Demand for
Production, Costs and Profits, and
co ¬
i
$1,000,000.00.
of
20
loss
ing, there is. little feason to .doubt
American
is
with
Two
stocks show no change, 13 stocks
show an average gain of 6.1%,
and
United
of
for
Automotive
corpo-
subdivisions
Deposits
been
if
individuals, '^
the Pennsylvania offering, which
shows an
2.7%, compared
Best's Index gain of 1.1%.
likely to persist indefinitely,-With
regard to the
Court rul¬
but .that this
fire
$15,645,522.94
tions
next several weeks.
1-1248-49
example,
upward
the past 12 years,
litical
;
Goods,
Agricultural
Growth
and
and
/
Demand
encing Residential Building,
;
of
Deposits
it is reported that
and large,
and
as
Exchange
Consumers
'________ $32,742,167.17
Government
*
well-known
cline
has
moderate
a
over
Teletype—NY
extremely
of 35
re¬
relativeljr steady
manifested
trend
Stock
NEW YORK 5, N. Y.
The market performance of in¬
was
steadily increasing and their net
investment
York
legislation.
dividual
derwriting gains over three- to
five-year
periods.
Meanwhile,
1.00
92,366.60
rations
.
Deposits
include:
Demand for
fix¬
partnerships,
partnerships,
financing which is ahead, when
will 'ere long be certified by suit¬
able
and
corporations
Time deposits of
In addition there
Washington Ter¬
around awaiting
there is little in the way
demonstrate very substantial un¬
invested
'
including
By
Fire losses fluctuate
year by year, but on aver¬
the well-managed companies
their
now
regarded
Request
on
(L. A. Gibbs, Manager Trading Department)
greatly,
age
New
Chapters
*,'
deposits of individ¬
uals,
are
issue.
i;
Telephone: BArclay 7-3500
i
:
,
LIABILITIES
Demand
and
pretty well placed,
having received a fillip from the
basis fixed for the
big Pennsy
Laird, Bisseii & Meeds
the
investments.
involved
groups,
few
a
capable
130 BROADWAY,
process
l__
ASSETS
ECONOMICS
\
•
vaults
TOTAL
are ex¬
\
owned,
furniture
and
business
Charles F. Roos
in-
5,950,717.17
assets
tures
DYNAMIC
79,737.50
balances,
in
eliminating
general
plained in the pioneer work
other
with
items
of
ings. Techniques required
15,999,752.88
premises
none;
Other
effects
•
collection
Bunking
•
Available
7
'
fac¬
the
view of
dealer
still
has
Bank Stocks
fire
short-sighted,
is
bankers
placement.
Meanwhile,
18 New York
during the war and the
prospect
that
high losses* will
probably continue so long as the
war rages.
• •;v. ;•' -■; v
>..,
.
Analysis
Significant Ratios
losses
of
new
the necessity for
the
and
institutions,
cash
and
and
of
cases
and
States
reserve
proving
-
Government
balances
eluding
importance
in
conditions in reconstructing earn¬
$10,619,592.02
subdivisions—^..
bunking
i
compete
Louisville & Nashville's
the
to
Cash,
a new
studies
-
f
.
finclud-
direct
of
the
stress
demand
for
minal Co. bonds
commerce,
subject
the
say
are
companies constitutes inter¬
ance
States
political
a
call
a:
assets
guaranteed
corporate
for
up
40-year bonds.
Undoubtedly
the
Supreme'
ruling last June to the
Court's
effect that the business of insur¬
Treasury interpretations of
31,
Banks
of
State of New York.
obligations,
working
chiefly on the clearing up the
balance of last week's $51,782,000
issue of Pennsylvania Railroad's
1,1
;
45.8
>* ' '
the
United
with
accordance
Superintendent
ing $63.42 overdrafts)
Currently, a good portion of the
underwriting fraternity, that is to
their
% Gain
152.32
38.0
several
December
on
to the provisions of the Banking
j- v.". >';•
narrow
but ended the year, as a group, moderately higher.
Compared
stocks and New York City bank stocks, however,
■__—_—____________
of
in
the
^
Loans and discounts
what- with
of
business
five bids.
1944 moved within
industrial
Fire)
and
by
Obligations
$75,000,000
coming
of
published
Law
the
promises to be
standpoint
market
to
with
(50
1944,
close
made
the City of New York scheduled
By E. A. VAN DEUSEN
Index
since
interesting from
more
This Week — Insurance Stocks
Bests'
market
week
business
Bank and Insurance Stocks
range
S.
1942
Broadway. New York City, New York,
the
pursuant
turn of the year.
7008
bit
stocks throughout
field, but bankr
disposed to
were
the
Next
Insurance
at
respite from fresh
undertakings as affording an op¬
portunity to give more attention
to clearing away of unsold por¬
tions
of
offerings
which
have
CHICAGO,
FRANCISO,
dealers
welcome
7535
BOSTON,
issue
new
and
ers
Street
CG-105
1-2875
NY
FRIVATE
in the
3
Salle
La
FRanklin
0650
HUBbard
3-0782
Chicago
9
Boston
5
U.
Section 722 of the Revenue Act of
of 50
York
-
•* ,'•- t.v
•;'
v
Underwriters Trust
REPORT
New
CONDITION OF
OF
'
REPORTER'S
At current market
pears to
levels, it
ap¬
this^Dbserver that fire in¬
surance
stocks, carefully selected
and with adequate diversification,
have much to offer the
conserva¬
tive, longer term investor.
Two large banking groups,
one
by Chase National Bank
the other
by the National
City Bank, have decided to merge
and submit a single bid for New
York
City's expanded issue of
$75,000,000
of
serial
which bids will be
Tuesday.
bonds
for
opened on next
an
and
collateral
3%s, due in 1970,
on
on
trust
the market
Tuesday at 100 and interest.
to'
announce
that the issue had been
favorably
They
were
able
received and the books closed al¬
most immediately.
'
I
tlic-
i.H
Volume
VA V»
fry-ft (.--'p
Jftfy.> *
Number
161
.{4,.V|f
t,
i '.rv ft"
THE COMMERCIAL & FINANCIAL CHRONICLE
4352
WES
laboratory and
the
on
testing machine
you
will find
beyond anything known
or
experienced before.
shape of things-to-come in railroading.
;
We
OMORROW
©N
'-■'•••
■
know
"•
•
••••
the American
'.
In its
,
■
•
••
planning, the Pennsylvania Railroad has
these
things in mind —.for it is
•■
public expects great
a
tradition of
things'—new, modern trains; daring -designs;
this railroad
exciting and novel innovations;
new
speed;
and
luxuries;
~k 50,757 entered
BUY
new
riding qualities;
new
new
comforts
services and ideas in travel,
the Armed Forces
UNITED
STATES
to
look ahead, and
new power;
search
to
finding
new ways to serve
ing and shipping public better!
☆ 532 have given their lives for their Country
WAR
BONDS
AND
STAMPS
mmm
MhMMI
'<*:■#
Seevmy the Nation
PM
M&S
wijw^a
i??
•
•
:*:
j:>;
!s**m
apply its
re¬
the travel¬
is, Haw <^,,
.7
Thursday, January 18, 1945
THE COMMERCIAL & FINANCIAL CHRONICLE
270
A.-- i
c^/*S2''
/,
«*S,
<- »
.
Union Bond
■I
Fimrf
;;■-/
if
|~f
|
|%1
I -I
Prospectus upon request
New
England
Fund
/
Prospectus
Lord, Abbett & Co.
/
request
incorporated
'
chicago
•
•
atlanta
los angeles
•
on request from-Principal
Prospectus,
...
york
new
Undmoriter
GENERAL
'
..
INVESTORS
INVESTORS SYNDICATE
TRUST
'
MINNEAPOLIS, MINNESOTA
A
In
recent
a
letter
REPRESENTATIVES
edition
revised
"A
-
Steel Shares
junction with the offering of this
a
Am. Tariff
~
tors
tal Investors shares again
A Class ©I
the
Mutual,
Investors
of
published
sponsor
has
Prospectus
Investors' performance."
economic life in the United States.
63 WALL ST.
The
wide
NEW YORK 5, N. Y
•
52-page
study
contains a
wealth of factual material on the
This
booklet by
entitled "Brass
Another/ smaller,
sponsor,
same
About
Investors Mutual, Inc.,"r is equally
Book
FaAts
of
attractive and should
serve
deal¬
well in introducing the Fund.
with
cash
released
report of portfolio changes of
Incorporated
Investors
for
the
three months ended Dec. 30, 1944.
Of perhaps greatest significance is
the addition of a number of rail¬
and
the
decrease
elimination in holdings of
or
railroad
discount bonds.
Income
Se¬
Securities
&
National
letter
Research
Corp.
ex-
Y
iSTTxffffli
AMERICAN
nature
of the
in
cash,
new
the two
each
10 shares of stock
the past
is well over 7 % and on
latter groups over 8%.
SHARES
IIVC.
Dollars
vs.
Purchasing Power
Keystone
in line
Corp.
purchasing power is another. In
the current issue of Keynotes, the
"But—he
would have
had to
this total to
add $1,000 more to
the commodities that
his original $1,000 would have
purchase
In other words, the cost
of liv¬
ing increased faster during that
period than his money increased
the savings bank.
At present
we are faced with a similar prob¬
lem.
Our national debt has sky¬
$40,000,000,000 in
$200,000,000,000 and
huge increase of money in cir¬
1939
to
from
over
culation is exerting
ward pressure
135 South La Salle Streit
on
a
strong up¬
prices.
shares
the
•
v'L-
A utomobile
"New
Industry
to
.;■*
millions;"
charge
in
12 auto
weeks
National Securities &
Prospectus
from
may
authorized
be obtained
dealers,
or
Research Corporation
120
LOS
The PARKER CORPORATION
ONE COURT ST.,
BOSTON
BROADWAY, NEW YORK,
tire
of .parts
they-would
companies,
new
folder.
It
"Do
Now"
the
is
folder recently sent to
Street
Broad
to
the
\ y'
^
ANGELES, 634 8.
Spring St.,
need
/
It re¬
for investors to
to; ,an
cither in continuation school, col¬
by; Sulz-
lege
issued
analysis
the'
cusses
ations
background and
the
of
qoverable
Lord, Abbett—A letter
.
only muscles but a spirit of
aggressiveness, tearp work [ and
fair play; together with construc¬
tive measures raising the public
not
if
(4)
-
':
iif
i/
hattan
as
Stocks.
tributions.
t
Co.
ments
cur¬
"These
portfolio folders on Railroad
tant."-.
monthly Investment Report:
rent
/
u r r e n
.
,
—Memorandum
<
,
.
Things
Seemed
issue
.•
•
-
"army" of
boys, jtorn
located and irresponsible.
of
wasting
directed
nay
a
year,
money
training,
on
Instead
such
scientifically and mechan¬
ically inclined form the only
•
sible
mis¬
inducements of
and free technical education
for the
of
-
immature
only to be thrown back again, dis¬
Impor¬
.
the
tech¬
by
modern
with them
?
* V"
from their normal lives for
New
taxable status
Current
r '
up
The answer is not an
,
,
mechanical
demanded
much less keep
;]l-adapted,
Custodian Funds Dis¬
Selected Invest¬
—
year's service
after their release.
Investment
and
and
<
youths
begin to learn dur¬
niques
war,
Kevstone Corn.
on
one
scientific
listing
of Jan. 1; letter con¬
Investors
even
their
ing
Shares, Inc.
Fund
Bond
Holdings
of Keystone
Mutual Fund Literature
could not
Hugh W, Long & Co.—Man¬
York
•'
-
feature$;of Dividend
Technical Training
Under the proposed plan,
.
Bullock—Current Bulletin
Fundamental
:
*
II,
changes and Current Information
f ol d er Ton
National-sponsored
funds. / /". Vance, Sanders—Cur¬
rent issue of Brevits.
Calvin
.
.
Military Training with all' its at¬
tendant evils will be unnecessary.
portfolio
b e r
physical
training, of one year's duration in •
the form of so-called Universal
Abbett-
taining Federal income tax infor¬
mation on Manhattan Bond Fund.
presents a ,con¬
vincing picture of what/can. be
accomplished
through
National
•'
e c e m
Thus inadequate
duty.
Corp.-^-Memorandum
.
during the war—deferred de¬
mand, technological development,
savings, and inflation—all point to
the. need for action to be taken.
nOW.
'
> v •'/"'*:" >'
1
Investors Corp.
D
again be unfit for. military
never
of the American Business
offer; Composite
Research
,
health, will assure, this country,
that 30% of its 18-year-oldswill
the
warrant
Summaryof .the; Lord,
The early
development of the body by sound
methods, calculated to
improve
oper¬
on
and: can
in. life
early
then best be corrected,
may
company,
Jj
elsewhere.
or
Many physical defects are dis-
be
bad from Sulzbacher, Granger &
Co;vupon request/" ;
•
showing
positions
light of probable post-war
Distributors Group—C
Management Associates, Boston, Mass
high school,
&
up
(14)
(9)
CHICAGO, 208 So. La Salle St.
this training following
title of/a "sponsored funds- with year-end
dealers.by figures. ■/■/;';•' National Securities
Corp.
Sales
i
schools.
through1; high
according
progress
-
VW
^United Gas; Corporation offers
Shares
Do It Now
Training
to carry on
.
write for a copy;
/'/-•'.*•/ /
.
Means must be found
placing most of their, funds in
companies supplying components, (Bond); Shares,
General
Bond
cars."
*
/
%' Shares 1 and Low-Priced ; Shares.
you
;
.■;./•
Physical training must* be com¬
menced, as a national policy in *
the elementary schools and con¬
be
suggest
•
//I. Physical
for any and all
We
is technical and
What, then, is the answer?
V.
visit the firm's
Chicago branches.
to
war
mechanical.
tinued
invested largely in shares
and
(5)
BOSTON, 10 Post Office Square
bond
and
well-
demands
war
United Gas Interesting
//
The folder then
request
trip
Cleveland
panies. Further, with assets of the'
Automobile Industry. Series .,no\g
in the
upon
the
Modern
2/ Modern
department
Broad Street,
New York City, members of the
New. York. Stock Exchange and
other
exchanges,
is on a, two
developments.,. Four
important
forces which have been building
Prospectuses
1.
developed physiques.
industryi;com-> Copies .of this'{study, which dis¬
review their investment
Securities Series
Hirsch
"Through the Automobile' In-^' baqheri Grauger & Co., Ill Broaddustry Series of New York Stbbks - ;way, New York City, members of
they can become*—in effect—part', the New York Stock Exchange.
owners
plan ignores the
fundamental facts that:
Meyer, Jr., partner in
of
''
velopment of mind and body/
'
of Hirsch & Co., 25
Hugh W. Long & Co. in a
sub¬
.
On Business Trip
Maurice
year's
one
continued, de¬
early
for
.
—XHBW1***
""""'
•;
producer will be the most suc¬
cessful
o.ne—which v shares^'.thev
most attractive/':
fers
NATIONAL
,*
Maurice Meyer of
/,;■ / ,/;//
the
by
cars
structure.
of
program
duration—and at best a poor
The proposed
?'///,<
"'-'iv./. n.*•
E-Vvv
stitute
more
its once
for
training
the
yith that: of other medium-
".v
is
haps
in
proposal
Reciprocal
the
under
tariff
out¬
bring
priced funds. ' > '"-.'iff:
.
of this
Keynotes, /"The
best way for the investor to pre¬
serve the purchasing power of his
money is to invest a part of his
funds in securities that can inAccording
CHICAGO, ILLINOIS
to
indi¬
attention .on the many problems
raised, by
the revision of the
hypothetical case of an investor
who placed $1,000
in a savings new folder on the Automobile In¬
.bank in 1900 at 3y2% interest, dustry Series of New York Stocks,
compounded semi-annually, is ex¬ Inc.
amined.
By
1920
this
capital
"Your clients need not become;,
would have grown to $2,001.60. In auto dealers in order tq .'go "into
short, the investor would have the : automobile
business.'. -Noi*
doubled his money.
;/-'1. '
need they guess as to which ear
the
SELECTED INVESTMENTS COMPANY
value of
market
brings r home
forcibly to the investor the vital
fact that dollars are one thing and
\
rocketed
be obtained
from authorized dealers, or
in ' order
standing
in
Prospectus
Trade
ner
are
now
said,
League
must never fall into
try
complacent, self-satisfied state. We
must be prepared.
In the final analysis, and per¬
oversimplification, the
Universal Military
Training is little more than a proj¬
Agreements Act/ The din¬
ect for a vast, glorified physical
expected to focus national
ductipns
cidentally
directors
all these groups over
.
preparations
worth
the
this nation is waging a suc¬
cessful war. Obviously this coun¬
major
name,
cating heightened interest in the
practical effects of the tariff re-
Coin-
times.
all
the
despite the lack of Uni¬
Military Training or any
versal
League
present,
com¬
he held
at
(Continued from first page)
out that
cultural and labor figures will be
fund
balanced
a
33%%
MilitaryTraiziiitg
whip in the Senate,
prncipal address:
the
make
Leading industrialists and agri¬
common
a
with this change, • the
opposing to issue one
share of stock in place of
ries are shown.
bought in 1900!"
may
stock
writes
National Income Funds
current
no¬
a
items, bonds and other pre¬
ferred
The average yield
the
from
to
least
at
Senator
.
President Fred¬
erick W.
Barbour, President of
the Linen Thread Company, will
preside.
•
(a Maryland
change
pany's assets to
Preferred Stocks
National
and
Series
to
company
fund
stock
income records of National
Bond Series, National Low-Priced
year
Series, National
the
of
For Universal
poli¬
Wherry of Nebraska.
Republican
omy?"
tice and proxy from the directors
proposing
Buyer
Has Fared" in National Income
Funds since 1941.
The year-byIncome
the
"How
amines
a
stocks
Nation¬
of
Co.
S.
trade
"What About Our American Econ¬
four years
y
Corp. has
Parker
Securities
A Substitute
United
over
discussed.
be
Kenneth
will
corporation) have received
on
Portfolio Changes
stockholders
will
cies
labor
and
international
States
Nation-Wide Securities
GROUP, Incorporated
.
~
s
boston, mass.
^ 1111111111111111111111 i 11111111H11111111111
Anniversary Din¬
American ;• Tariff
at
culture
}%?■'''
DISTRIBUTORS
ress—1894-1944," containing facts
and figures about the growth of
Tacks—a
* 1
10 figure to equal Fundamental
large and impressive brochure,
entitled "A Half Century of Prog¬
a
subject and Investors Mutual is
to be congratulated on a fine job!
'•.
:
E
devonshire street
111
z
the Waldorf-Astoria
Hotel tonight Jan. 18, vthe grow¬
ing
concern
of industry, agri¬
would
market
the
League
have to rise 24.9% from its Jan;
Request
on
general
60th
pf
ner
On
reached
1937 all-time high.
the
At
Inves¬
referring to Jan. 10, 1945.
"The
Syndicate,
Investors
Fundamental
on
E
league
Tonight
Dinner is
that day the value of Fundamen¬
Croup Securities, Inc.
a
>
Special Day" is the title of
memo
Minneapolis Memo
In
:
&
distributors:
| A. W. SMITH & CO., Inc. |
period
a
Fundamental Investors
de¬
the
of
Fund, showing the actual port¬
folio holdings, is now available.
road
during
Of generally rising prices.'-
scriptive folder sent out in con¬
The
value
in
crease
$1,000,000 since
to
-'/>:////''"
z
6/
request
on
STATES'
UNITED
THE
=
initial
offering only 36 days ago."
ers
OF
by Hugh W. Long & Co., the sponsor
been
"Sales of the Fund have
this
FJMN dIP AiCITIE£
THE
Diversified Investment Fund which was
on
reports that:
A
IN
Popular Fund
initially offered on Dec. 1, 1944,
close
'; /;./■/'
\
,
Prospectus
Mutual Funds
'
A
.
answer.
pos¬
And advanced train-
Volume
Number 4352
161
THE COMMERCIAL &
-
FINANCIAL CHKUmuch.
O07
■war
ing need not be
so
teaching . obligations: of
citizenship..;''.
(b) by
limited—other
3. Promote Pnysical Fitness
preparation:
languages,
law and medicine, for example.
♦•This type' of program would' ob¬
viously involve the discovery of
Vocational aptitudes in high school
proper
resources iridiscriminately on an arbitrary
not adapted to in-
program
-'
;
a
5. .Be
sarily form
j
program.)
;
would neces¬
to
!,
In this way we would be util¬
izing not only the economic and
(b)
a
financial but the human resources
the
of
and
apti-
,
:
develop it;
avoid dan-
of military domination.
7.7over, civilian
country wisely—not fool¬
'"7
'
;
because it will
' gers
him
and i encourage
life.;...1
national responsibilities.
We will
have
ready for any emergency—
and most of all, for peace ~r a
physically fit, technically trained
democratic reservoir of men.
times that for education.)
7. Not* Disrupt Educational,
V4
ing them an American opportunity
to assume their individual
and
tor. (Our crime bill is five
•
hess,
Family,
-
Physical. Life
;
Busi-
M oral
and
of Nation, as
Bank Credit
In
a
Training Would
Paine,
memorandum,
current
credit
expan¬
sion in World Wars I and
II. Also
discussion
year's misdirected effort
in youths'' most formative years,
the proposed suggestion will cause
an
already physically developed
a
youth to
expand—liot submerge—
t Their:individual talents by offer¬
of bank
in the memorandum is a forecast
of
"PEPS" still qppear
for further
to offer pos¬
sibilities
appreciation
cular
on
substantial
according
the
situation
to
cir¬
a
by
issued
Scherck, Richter Company, Landreth
Building,
St.
Louis,
Mov
Copies of this interesting and in¬
circular may be had
from the firm upon request.
Webber,
ing exchanges, have an interesting
upon
"Peps" in Home Stretch
formative
Expansion
Jackson & Cur¬
tis, 25 Broad Street, New York
Military City, members of the New York
X:\''7Xy7> Stock Exchange" and other lead-
^ Admittedly Universal
Democratic
Vidua!
-
.....
...
,
'
t
of the 18-
age
(a) because it will induce/ not
compel.
It wilk seek "the
best potential in each indi-
part of the over-all
a
'
j
i 1-
,
schools, colleges and universities,
West Point and Annapolis. (Mechr
anical preparedness
skills
dividual
tudes.
technical
our
.
It
•;
-
screening,
national
limit.
The unfit.
of all types would then be
discovered.
Rehabilitation
programs would be called
year
<:
'.'
financial
;
a
well in advance
K
(a) by not wasting human and
-
great expansion of
(a) by
-
>
suitable .preparatory courses.
would
involve, furthermore,
V:
Sound '
v
:
;
(a) by early, continued program.
4; Be; Economically
6. Weed Out the Unfit in Time
Copies
possible market action.
Jackson &
Curtis
on
Gas
&
Chemical
com¬
possibilities
according to a study of the situa¬
tion prepared by First of New
York Corporation, 70 Pine Street,.
offers attractive
mon
City. Copies of this in¬
New York
teresting
analysis
may
be
had
request.
upon
request from First of New*
York
Paine, Webber,
may be had from
Indiana Gas of Interest
Indiana
Corporation.
ishly on a year of so-called train¬
ing replete with many evils. More
than that, we would be preparing
for war; but for peace.
f/-;
Methods
III.
•
Commission
1.
•
v.--
:
'fi&rb Commissi on. should be create?
by the Congress to study the eh-
deliberation, i A majority;
Commission should be
proper
of
s
the
trained .civilians drawn from
air¬
military, auth¬
orities should constitute a minortiy
lines of endeavor;
After the proposal
preparedness is rec^
by this Commission,
this body-
on
for peacetime
ommended
and
assured, a
public support is
implementing
with
law
Federal
State laws would follow.
•
2. Federal
(a)
Law
Federal
The
should
Act
prescribe minimum standards and
requirements
and. provide
for
grants-in-aid to carry them out
But preferably the prog ram
should be handled, as tradition¬
.
ally, by the States and
munilies.
.
<
'
.
local com'
■
(b) Minimum standards should
,;
cover
,1. Physical training
(a) raising health of nation in
,
other ways;
(b) Expansion of training far
cililies and public health
•
*'•
.
program.
,
2. Technical
1
-
'
,
and other training
(a) discovery of individual
aptitudes;
expansion of training fa¬
(b)
cilities.
-
minimum
(c) Other
•
standards
should cover:
J. Basic literacy
,
-2, Citizenship
,
"(a) to
know
what
we
are
fighting for;
(b)
■
to know how to preserve
the peace.
•
.3. Elementary military training
(a) might possiblv be added
r
-v_
'
!.■
to regular high school as
well as advanced learning
curricula; I'M (b) might include military or¬
v.
\
AWARE
ganization, equipment,
tactics, basic drill, etc.
ton that THE WAR IS NOT YET OVER
of the magnificent
—G,Of)
pauses
for
job American Railroads
an
are
doing, and
a warn
instant in its immense task of producing
3? ptate Law
materials for
our
armed forces—Pauses to SALUTE THE RAILROADS, their men in maintenance, operations,
Act, adapting them to
conditions while still con¬
of Federal
local
forming to minimum standards.;
Conclusion
IV.
V
It
is.
submitted .that
and those who
.
!
the
G/C/f/, with sleeves rolled
versal
Military Training.
than Universal 'Military
-
It wUl
proposed
7/7?
war,
has well-laid plans for the future, for the wonder trains of tomorrow*
IN WAR
CLCE produces Conih.it Tanks, Shells,
■Hombs, Tractors, Landing; Mais, Minesweepers, Net
Training
and avoid its admitted evils,,,,
The
of
help America's Railroads attract and hold traffic.
for Uni¬
solve the problem in a. better way
•
up,
and the facilities and /'know liow" that will
preparedness is superior to
the hastily-contrived plan
the trains. They are truly «l potent factor in the successful waging
sug¬
gested possible solution for peacetime
man
Tenders and many, implements of
,
substitute will—
omt
1. Prepare Us for AVar
Navy.'
'
War for
1
„
our
'
IN PEACE
^
-of —
,
Army
/
|
f
will
again lead in Production
Railway Passenger 'Cars,. Streamliners, Freight
Cars, Subway Cars, Mine Cars and a variety of other
Products,'
.
CLGO
7,'.-
r
:
•
/.;v.
V
(a), by better physical develop-
U
ment of our youth;
y
•(b)'by technical and other train¬
ing demanded by modern
.
U':;'
2.
war.
.
Prevent War
UniMilitary Training; I
(a) by better training than
>
versa!
■
■
•
'
'
Whatever Q .CP Builds—Bt ii Kmum to Build Well!
WMiM- AMERICAN
NEW VOTIK
•
OHIGAOO
> ST.-LOUIS
•
CAR AND FOUNDRY COMPANY
GLEVEIANI) • WASHINGTON
.
PHILADELPHIA • PITTSBURGH • ST. PAUL • SAN
HUNCISOB
l
'
THE COMMERCIAL *
FINANCIAL CHRONICLE
Thursday, January 18, 1945
Posl War
Our
new
Province; of
/
:
Canada and War Finance
yi
.ALBERTA
pamphlet entitled "Canada and War
Finance, September; 1,} 1939r~Noyember 30,
1944," provides an interesting survey of many
salient features of. the Dominion's wartime
f.
-
,
furnished upon request,
servicemen
1
;
Members Toronto Stock Exchange -
WHitehall 4-8980
New York 5
National Thrill Week
Canadian Securities
clearly a sounder grasp
of the fundamental facts of economic life when, following the recent
visit of Lord Keynes, the Dominion proceeded to form a new division
of the Department of Trade and Commerce with the object of stimu¬
lating the import of goods from Britain. By this Act Canada formally
disavows the outmoded and erroneous conception that a healthy
state of trade requires the exis¬
tence of a large balance of exports
Canada demonstrated more
imports.
Moreover, it is now clear that
Canada is prepared to continue
further along the road to fuller
integration of her economy with
over
as a
has
existed
there
respect.
1
-CORPORATION
first
World
War, has distributed
with the cooperation of
the great national civic, educa¬
tional and welfare organizations
of the country, suggestions for the
store
of natural
in
A. E. AMES & CO.
INCORPORATED
the
world, and should it prove pos¬
sible to integrate the two econo¬
TWO WALL STREET
mies
NEW YORK 5,
to
advanced
an
solution
of
the
degree, a
problem
ceptance
tionals
would
but
demand
offerings were scarice.
Montwere buoyant and
although
reals
since
the
turn
of
the
year
the
long-term bonds have advanced
3 to 4 points, there still
appears
to
be
scope
movement.
firm
.
and
for further upward
Internal issues were
free funds were
at 10% discount.
strong
v:;.
.
Following reports of renewed
discussions in Toronto on the Al¬
berta debt question, the bonds of
this
province
mand.
were
It is now
in
active de¬
becoming
more
generally accepted that a solution
Among
a
welter
of
rumors
concerning possible details of a
plan, the most optimistic an¬
ticipate full settlement of back
Interest, with payment partly in
scrip, and an
exchange of existing bonds for
cash and partly in
a
new
Wz%
long-term bond with
a
coupon.
remove
Canadian
bondholders
the last blot
financial
on
record,
the
espe¬
cially if the Province will appre¬
ciate the wisdom pf making
a
generous settlement.
Turning to the possible future
course
of the
market
in
general,
there is every reason to anticipate
an
accentuation of the existing
strong trend. As previously men¬
tioned, high-grade Canadian bonds
within the 5 to *10 years' maturity
range still make favorable com¬
parison with comparable domestic
issues and the supply problem is
increasingly acute.
The
less
inclination
Canadian
external
premium
on
holders
bonds
on
the
to
to
part of
sell their
eral
belief
dollar
the
secure
U. S. funds. Where¬
previously there Was
as
that
would
the
return
a
gen¬
Canadian
to
its
old
parity at the end of the war, if
not before, there is
The materialization pf such a
scheme and its almost certain ac¬
people
ac¬
is the
war
and
fighting, the suf¬
dying it exacts.
the
ing
school
holds
a
of
now a grow¬
thought
which
contrary view based on
City of Montreal, Bonds f
■'
\ s>:yv./n* tru
-
*:»-.> \
Bought—Sold—Quoted
says
spends too soon.
save
It is
Committee,
the
says
than to "want"
to
sav¬
realize
to
from
their
war
country's war
against waste should never end.
The tone of this year's National
Thrift Week observance, says the
Committee, is more serious than
in all the years of the Week's his¬
tory.
In Governors' proclama¬
tions of the Week, issued in most
of
the States, the
people have
been reminded again that "there
is no better way to observe Na¬
that
our
Week
Thrift
than
to
buy
The general tenor of
that, the peo¬
ple having set their hearts, minds
ticed thrift which has materially
furthered
now,
efforts. They should
our
therefore, in the opinion of
these officials, take occasion dur¬
ing Thrift Week to review their
budgets to make certain that they
will be able to
conserve
their
war¬
time gains
in savings. This will
not only assure their personal fi¬
nancial security, but will be a
continuing personal contribution
to the national well-being.
We
have
been
"tyrant's war."
this
But
now
become
tered
Attractive Situations
York
lars
Co., 120 Broadway, New
City, have prepared circu¬
on
several
situations
& Co. upon request:
Laboratories
a
war."
General
Europe Now'f
Hitler
the
on
European continent,
and after three years
war
until
Now
was
we
in
'
Since Aug. 16; 1941, our govern¬
ment
leaders, even the highest of
them, have dangled the principles
and purposes of the Atlantic Char¬
ter, both in toto and in tantalizing
tidbits, before our eyes. It is, they
said, a "war of liberation" from
old world with all its
ills
the
to
brave
new
ancient
world
al¬
ready being erected on the Char¬
ter's universal principles.
And
now we despair of such a promise
in the story, not that the Atlantic
Charter is dead, but that as a doc¬
ument, it never lived.
The conflict of fears, which is
inevitable aftermath of
an
"A";
Merchants Distilling; General In¬
strument: Great American Indus¬
tries;
Massachusetts
Power
&
Light $2 preferred; Majestic Ra¬
dio; Magnavox Corp.; Electrolux;
Brock way Motors; Scoville Mfg.;
Bird & Sons; Cons. Cement "A";
Riley Stoker; Alabama Mills, Inc.;
American Hardware, arid H. & B.
a
loss
they have been run¬
Taylor. Deale
&
Company
64 WALL STREET, NEW YORK 5
with
sterling.
,
And
the con¬
Europe, whose social,
economic, and political founda¬
tions have already been torn up
by the roots, is being further bat¬
while this
tinent
gdfes
war
War.
on,
of
tered into
a
veritable chamber of
horrors... V"
Actually, Europe has become a i
seething furnace of fratricide, civil t
;
murder, disease and starva-^n
j And
while this senseless !
war,
tion.
people with
tary of State, Mr. Stettinius, seeks
to inspire fear in the hearts of the
justice and in their decisions
on a knowledge of the
American people by drawing verbal pictures of the robot horrors
their
in
and
when based
considered
have
I
facts.
it
my
duty as a senator to
the
of
next
Secretary
and our Under
State, Mr. Grew,
war,
of
give the American people all the further panics the public mind by
facts in my possession, together threatening that the next aggressor
with the truth about them, as I will wreak his wrath on the Unit¬
ed States
it.
see
Therefore, tonight I make not
even
the pretense of an apology
for the position I have held both
before and during this wars Fur¬
thermore; as I see my duty to¬
night, again in the limited time
accorded me it is to
give the
American people such facts as are
in ray possession and the truth as
I
see
Le
ica
it concerning these
not mince words.
us
tonight faces
this
war
facts.
Amer¬
crisis in
in inter¬
Since no real
a grave
and an impasse
national diplomacy.
could
agreement
be
reached
the Big Three, about the
Nations organiza¬
United
contemplated in the Moscow
Declaration and advocated by the
ly to warrant a single gesture to¬
success
an
the Allies themselves that
they have not dared to create a
United
cow
ago.
political council
promised in the Mos¬
Nations
as was
as
the first victim of the
third World War. America is
subjected to
of
being
psychology of fear,
a
insecurity, of
the
a
effectiveness
of
"Declaration
of
over
a
year
After five, years of fighting
normal
the
and principes of inter-
processes
national
lack of faith in
law,
,
part of which
process is revealed in the current
a
Administration
drive
to
saddle
the American people before
this war is over a war psychology
and a war economy in the form of
peacetime military conscription.
Why peacetime military conscrip¬
f
upon
:
tion if the President has faith in
And at a time ;
,
Dumbarton Oaks?
when there is not a stable governmerit left in Europe or in Asia,
when
our
is
f oundation,
and
I
.
unity between ourselves and
Allies
threatened
to
when millions of
its
men
<
suffering the tor- '
tures of the damned, there has not
yet appeared a single curative."
or
women
are
creative idea around which to
its security on the rebuild either
Europe
international organi¬
This distrust runs so deep
of
among
such
dollar
Third World
a
upon
I have every confidence
innate sense of decency
zation.
the connection of the Canadian
100 per cent
in
the Far
trusted the American
the truth.
request by writing to Mark
Merit, in care of Schenley Distill¬
ers Corporation,
350 Fifth Ave*
New York 1, N. Y,
WHitehall 3 -1874
front, 50 per cent of
fighting in Italy, and almost
of the active fighting
Pacific, our muchvaunted Allies are now engaged
primarily in consolidating and ex¬
tending their influence into everwidening spheres in
a
bloody
game of power politics which, if
continued, cannot help but blow
the
this purposeless process goes on, :
the President is urged to call for ?
a National Service Act, our Secre¬
wards risking
upon
v
and, up. to this present moment, 1
propoganda, has created
deep confusion on the American
scene.
Personally, I have always
United States, Dumbarton Oaks is
Schenley Distillers Corporatioi
have prepared an attractive book¬ a grim hoax.
No rtation Today
let containing the first articles trusts the other nations sufficient¬
'n the series
common
of faith in
among
Available On Request
a
the western
our¬
deep dismay the ques¬
tion, "A war of liberation to whom
an
on
been
a
ask
and to what?"
agree
"war
we en¬
have
We
even
policy towards Asia. At this very
moment, while Americans are do¬
ing 70 per cent of the fighting on
which
currently offer attractive possi¬
bilities, the firm believes. Copies
of these, circulars, on the follow¬
ing issues, may be had from Ward
Du a'; Mont
"global
a
of liberation."
most solemn
Ward &
is
we are
sold the idea that this
selves
this
know that it did not
global
fight.
a
the
told
But
was
we
ning in the "Financial Chronicle."
Conies of this booklet may be had
Gardner,
cannot
in
tion
•
C.
told
Gains
future
;
ing to B,
Manager.
of American
participation in the struggle, the
precious "unity" of Great Britain,
Russia, and the United States can¬
not produce a common statement
of purpose towards Europe. They
Their
American Machine.
...
five-point
rehabilitation plan in advance of
begin¬
ning to wonder just whom this
term includes.
Since the begin¬
ning of the war we have been
"Hold
cution of the war, they have prac¬
the
by
supply shortage is fur¬
ther aggravated as a result of
sight.
that
and hands to the successful prose¬
of this protracted affair is at last
m
and
the proclamations is
NY-1-1045.
RECTOR 2-7231
regard to the market for
the past week, there was again a
strong tone and greater activity.
Among the high grade issues, Na¬
strong
save,"
War Bonds."
With
in v
loan
a
the
of
(Continued from page 261)
fering,
tional
N. Y.
British
would be in sight.
were
Could be reached
as
notified
United States of
this
to
activity
CANADIAN STOCKS
undeveloped
resources
premiums charged to
Bpdget
a crucial time. Most peo¬
ple, the Committee believes, have
pos¬
the; greatest
"A nnual
ings at
On
hand, Canada has
the other
armed forces
widely,
want to
inventive capacity and in¬
sibly
of the 1,116 Bank of
employes now in the
many
the public announcement, accord¬
better,
as
her people.
As
he shall have full coverage under
the group life insurance plan, with
"Balance His Books With Content¬
MUNICIPAL
although considerably
impoverished, still has great po¬
tential strength in the political
sagacity
and
commercial
ex¬
dustrial skill of
which he is best suited."
ment" if only he saves too often,
PROVINCIAL
Britain,
in the
month, and that upon return¬
ing to the bank, he may have two
weeks'
vacation
with
pay
and
shall be given a refresher course
before taking over the position for
per
mittee, which sponsors this 28year-old observance begun in the
come
well
protection
rather than
a
war.
as
provide that the
acci¬
full
for dependents for 40 to 60 cents
Montreal
"Other features
have
can
dent and sick insurance
were
that
it is possible for the individual to
assist* the Mother Country to
repair the economic ravages of
perience of her leaders
bank, have been entered
record.
Serviceman
bank pay the serviceman's con¬
tribution to the pension fund; that
should
And,
development of
Canada during the war, the Do¬
minion is now in a position to
the
his
and extra charges for war
defrayed by the bank; that a
risk
Tjhe National Thrift Com¬
Jan. 23.
Thrift," the Committee
economic
sive
Benjamin Franklin's
and continues through
in
the caution that "You can't afford
GOVERNMENT
of the impres¬
consequence
with the
NOT
in the relations
mutual
greater
service¬
could
reasonably have ex¬
pected to receive had he remained
on
birthday,
the
advances, which
Check-Up" during the week. With
of the Dominion and the Mother
^Country
17
individual's
CANADIAN BONDS
•that of Britain.
Never before
the
National Thrift Week opened on
Jan.
provision of the plan is
that servicemen coming back to
the bank shall not merely return
to their old jobs.
In their absence
the position and salary of each
has been reviewed annually and
man
January 17-23
By BRTJCE WILLIAMS
count
"One
>1 Broadway, New York 6, N* Y.
Incorporated
14 Wall Street,
bank's announcement says:
CHARLES KING & CO.
Wood, Gundy &
has
;
-.
if
Copy of this new pamphlet gladly
Never
i
''five-point rehabilitation plan," it is designed to assure to returning
all of the advantages which they would have enjoyed
they had remained continuously in the service of the bank through¬
out the period of the war.
The ^
All Issues
economy.
-
1^
!
The Bank of Montreal has announced what is believed to be
the most comprehensive program of postwar planning for employees
so far outlined by financial institutions.
Described by officials- as a
Bonds
.
Proposals for Employees of
Bank of Montreal Embody Five Points
What is the answer?
vinced
that
the
or
the world.
I
am
con-
majority of
the
■
,
American people believe with me
+W it is imperative that a United
Nations political council be imme¬
diately set up to
ent
series
of
see
that the
pres-
disgraceful unilat-
.
•
'Volume 161
the commercial
Number-4352
settlements now taking Britain's intervention in -Greece,
plaee in Europe stops. Only in this unless I am terribly mistaken,
way can the inevitable, conflict this is the first of many clashes
arising out of the creation of two of interest that will inevitably
spheres of influence in Europe be follow, when both Russia and
averted. Here is the. finest oppor¬ Britain apply. this principle.. If,
tunity in the world for those who on the other hand, Russia will
have been preaching international join with Great Britain and the
cooperation in behalf of the Big United States in a sincere experi¬
Three to prove by their acts their ment in international collabora¬
willingness to settle these new tion in that part of the world that
problems around a conference ta¬ constitutes their own back yard,
would
be
ble rather than at the point of a I
willing to support
bayonet.
If Russia continues to an international organization that
insist that the fate of Finland, of would guarantee on the basis of
Poland, of Latvia, Estonia, Lith¬ the principles of the Atlantic
uania, Rumania, Bulgaria and Ju¬ Charter the security and integrity,
goslavia, and even Norway, is to not only of the United States of
be left entirely to her discretion, Europe,
but of Russia as well.
and if Britain insists that the only But I shall oppose any world or¬
answer to Russia's acts lies in her
ganization designed to put the
mimicking Russia's methods in United States in the position of
her relations with the nations of holding the draw strings of an
western Europe all the way from international
grab
bag
while
eral peace
connive
Russia
Scandinavia to Greece, there is no
point whatsoever in talking about
a "World Security League" or po¬
Britain
litical councils and World Courts
i;::;;;27$
_
would
tionist"
to
the time of this Senate in
be a
criminal disservice ers, the most inflated internation¬
America, to our Allies, to the alist impresarios,' or the most
world, to confuse, or to tolerate ardent Anglo- and Russo-philes
confusion, on these issues for the .could continue to mask the brutal
cial
mind.
hour
an
I
of
barrass anyone.
moment longer.
realities with which
"For long months on end, this
confusion has been fostered in
confronted behind any distortion
of the English language, no* mat¬
about
the
crisis
ter how
our
hot
It will be
disputes in the future.
too late.
with
all
;7y:
Secondly, the Big Three must command,
■
fortmulate
creative
some
idea
which Europe can be re¬
around
Europe has always been
powder keg of world conflicts.
It has already taken us in two
built.
the
wars
and
third
one.
months
now
even
In
threatens
a
I spent five
almost
every
1923
visiting
country in Europe, including Rus¬
sia. I have been there many times
from that day
to this I have been convinced that
And
then.
since
salvation for Europe, and
the only basic cure for her an¬
cient ills lies in the creation of a
United States of Europe. This idea
Is not original with me, of course.
the only
It
has
been
advocated 'by
out¬
standing European statesmen, in¬
cluding Briand of France, Schussnig of Austria, Winston Church¬
ill, Anthony Eden, Clement Atlee,
and Sir Archibald Sinclair.
Let
us consider the basic idea under¬
people
truth about the international situ¬
ation and through reams of propa¬
ganda which has identified the
struggle ox our allies to consoli¬
date and extend their spheres of
influence
in
a
new
power in Europe,
rooted ideals and
of
balance
with the deephopes for a just
and lasting peace
of the American
people. These techniques in deal¬
ing with the truth have led to
such confusion and cynicism
among our people that they have
begun to lose faith in their own
Government leaders.
As matters
are
we
now
ingeniously conceived.
the
"Even
by deliberate suppression of the
seriousness
the
at
now
stand, it is doubtful that even
global do-good¬
the most fervent
"unconditional
of
slogan
render."
this
Until
shall
bloodiest
nature
of
and
go
"Mr. President, I would have it
understood
at
the
outset
that
saying, the dangers to
which I refer, the charges I am
making,
and
the
proposition
which I am going to offer are in
no wise just an expression of per¬
sonal idiosyncracy.
They are not
the fiction of an alleged
"isolaT
am
current
issue
of
Review", Huff, Geyer &
Hecht, 67 Wall Street, New York
City, have interesting compara¬
tive tables of market price range
of
fire
and
casualty insurance
statistical compari¬
of New York City Bank stocks
stocks, and
son
as
of
a
Dec.
31, 1944.
"News Review"
developments
are
in
bank stocks.
Also in the
discussions of
insurance
Copies
may
my
sur¬
on
United
a
of
States
Europe in
which disarmament and economic
collaboration
threat
to
Russia
or
nated
combined,
are
the
security
any
Future of Insurance
lying our own United States
Suppose each of our 48
States maintained its own exclu¬
tariff bar¬
sive sovereignty* with
restrictions,
business
and
Britain would be elimi¬
the
and
task
of
restoring
The insurance
Germany as a respected member
of the society of nations will have
been largely begun.
I would be
and I am sure the majority of
the
world.
We
make
must
attacked from three vital
government, we
would
burdened with
the
local
or
know full well our history
been
have
The
that will not require it, a
shall be willing to sup¬
port with all our heart and soul,
not only now but 10 or 20 years
(2) Lower Income
The
Churchill, if we are
fighting this war in the far
they
it is in
this hour of their anguish.
Fur¬
and
have
ever
secure
ideal than
known before,
:
•
thermore, the acceptance of this
remedy for their suffering will
the
provide
which
of reality
core
to
faltering unity among
the
the Big Three can
the
vigor of
attach itself in
a. new-found
people
the
masters,
worked out now,
we
the
vision.
I
In. this
way
am
convinced that only
can
No
lost.
been
can
their very
higher ideal
of its peoples to
knees.
Without some
discipline and guide them. Great
Britain, Russia, and the United.
States, with the very best of in¬
tentions, will be sucked into such
a moral, social, political and eco¬
nomic
vacuum
that
they
will
to
trol
rope
in
over
until
at each
they find
believes
maintain.
eastern
themselves
other's throats.
Russia
and
a struggle to seize con¬
whatever is left of Eu¬
control
Eurppean
of
nations
seize
these
into
which she has marcned in order to
tfe
s&
and
secure
-
.
■"
•
'■
r*-
•
'v.-'V•'
•••;.
can
be
Yx
'•
•:Y
•".V '•/
7
•
::
'
• .•
largely reduced—Loss-ratios
well-trained manpower.
stocks
*
are
in¬
Upon these the value of insurance
In
largely depends.
a
Senate
marks follows:
"History
is
itself..
repeating
The question raised by President
Wilson
has
risen
dark hours Of the
again
these
in
Second
World
War to
plague us: 'Is.the present
war a struggle for a just and se¬
cure
peace
or
only for a new
balance of power?'
Are people
being handed about from poten¬
tate to potentate, from dictator to
whether
vile
YOU CAN HELP
'
..."
;
.
one
•
v. ;7
*
Reduce Fire and Casualty Losses by Recommending—
A FIRE ALARM BOX
—
every
tire hazard.
BETTER "HOUSEKEEPING"
'ADEQUATE POLICE PATROL
TRAFFIC SIGNALS
—
—
with recorded performance of police duty.
y.
at street intersections.
SPRINKLER SYSTEMS
:
^ .
AUTOMATIC FIRE DETECTION SYSTEMS
Write
us
for
o
"Personally T
deta^Mhfof
*
v-ojj.p— bh^.
arn
convinced that
has accepted in ser¬
acquiescence
the
present
ominous trend toward power
poli¬
urging cooperation
her western tics and is now
border.
But I ask, where does with the 'inevitable' or whether
this process stop?
And I would one still refuses to surrender his
answer, not Until it reaches open self-respect and his struggle to
conflict with other spheres of in¬ salvage what he can of decency
fluence. Say what, we like about and justice from this mad war; it
protect
ji-
result.
dictator?
she must
i
sbctg.
signals supplemented by sprinklers, automatic alarms and
no
full
change this
slogans,
phrases
jGltJ
•
versely proportioned to municipal fire, police and traffic
we
masses
end up
These losses
stop, our boys will have
in vain—the war will have
worded
Portfolios
on
(3) Increased Fire and Casualty Losses
armies
died
probably grow"
degree of injury sustained will depend ugd^ future
:V;vv',Y.• v-V.'.Yy•>:7.(•'
American
speech delivered in the
on Jan.
15, 1945, Senator
avert a far Wheeler again condemned
the
worse, catastrophe than this war in
policy of "spheres of influence,"
the years ahead.
Europe is now and charged that power politics
in such a state of demoralization were pervading the international
that the middle class has been situation, and that this requires
virtually eliminated, and a level¬ an immediate definition of Amer¬
ing down process has brought the ican policy. A portion of his re¬
all
:;•*~
then it does not
where
matter
will
interest rates;
■
Pacific merely to return to their
old
cuts
.
to Stalin and
not
rate
on
stronger—with the agents the greatest sufferers;
.
ative
public insistence
peace
lib¬
erate, we ought now, once and for
civil war.
If ever
all, so to record our intentions.
Europe had a cause or were ever
If
in the condition to reorient and
power
politics in Europe
reorganize
their
interests
and cannot be stopped now, if a free
their loyalties around a more cre¬ federation of Europe cannot be
than one
the people of
shame and grief of more
angles
(1) Lower Rates
a
peace we
.
state
industry is being
Americans also would be unwill¬
sectional customs, so¬
cial problems and ideals, suppose
from now.
..■>.
our regional economic and indus¬
Certainly, if we are not fighting
trial interests, suppose our 48State Militias yielded allegiance to this war to transfer the control of
no
h igher authority than their Europe from Hitler to Stalin or
suppose our
Companies
either
of
The Gamewell
Newton Upper
Falls
and
be had
request from Huff, Geyer &
upon
Hecht.
vinced that with the establishment
of
their
"News
effected,
is
fair
the
"News Review"
the
In
.
what I
both frank
be
present
confronting America,
allies, and the world."
'
.
■
..
to
bitter¬
enders, I am quite convinced, are
going to find that any attempt to
cover up the ever-widening tracks
of power policies in Europe by
prating about 'unity, beautiful
unity' will be like trying to
shackle three tornadoes to a palm
tree.
only
blowing Europe
and our own boys to bits without
rhyme or reason, still ignorant of
why we fight.
And I am con¬
we
cru¬
history to em¬
I am concerned
that
the
American
people, demand the abandonment
by their Government and their
Allies of the brutal and costly
ing to sanction a peace of ven¬
geance.
I am unwilling and I am
certain again that the vast major¬
ity of Americans are also un¬
of
willing that America's sons police
America.
riers
or
fight for the spoils.
No one yet
has found a way to save his birth¬
taking
so
now
the minds of the American
am
right by selling it for a mess of
pottage.
I
would
conclude by urging,
for the settlement of international
and
.chronicte
Company
Massachusetts
THE
concerned with the inter-rela-
as
*
It, is a
complete victory.
our
•
The New York Stock
days-
The taste of
military reverses, such as we have
not known since Bataan and Corregidor, is bitter in our mouths.
One of our deadly enemies has
broken out of our ring of fire and
steel and lashed back with un¬
foreseen
cunning and strength.
This has upset our time-table of
victory in Europe. - The conse¬
quences to the nation should not
be
underestimated.
The conse¬
quences to suffering Europe, hop¬
ing for rescue, are past calculagrim, terrible days.
tion.
:
These
are
■
.
all days
days above
confi¬
dence
strong
and
unflinching.
None of us doubts the final tri¬
umph of our arms.
Our com¬
manders—military, naval, and in
the air—have been tried in the
fire of three years' war, and have
presented us with matchless vic¬
to
t
i:
■
stand fast, to keep our
1
„
„
.
.
place
a
large class of our citizens, the
business men, on a level with the
barbarians we are fighting.
It is
precisely the Nazis and the Jap¬
anese who have adopted, as their
national and personal policy, the
unrestrained pursuit of economic
advantage.
To this end they have
employed enslavement, destruc¬
tion and cruelty unspeakable.
cynical theory would
this theory,
is not inconsid¬
accept
who
Those
and their number
erable, naturally demand that the
business man shall work in chains.
held
be
must
He
has not
arrived
secure
was ex¬
as soon as
pected?.' That would be conduct
'unworthy of the heroism of our
down
among a
Let us talk frankly and often
abridged in any way, we take ap¬
about making a profit.
:
propriate action.
{
>
,*
•The very essence* of Stock'Ex¬
Certainly profits have to be
made if jobs are to be provided.
change principles is the disclosure
of fgcts as the only sound basis Ability to show a reasonable profit
,
'
is
usefulness.
which to pass judgment as
security values.
Our member
firms have invested large sums of
has
.The Secre¬
Treasury,;. Mr. Mor-
throughout this war.
the
of
tary
application
no
Our community has no
whatever.
its fellow human
beings. Its mem¬
that they have
bers do not believe
such franchise.
Speaking for management
any
in
responsible general, as I know it, I deny and
repudiate a theory which would
questioning. Our wars are run by
declare it devoid of moral respon¬
professional soldiers of great abil¬
The observed conduct of
management displays a constantly
higher sense of responsibility.
The time to reflect upon the
sibility.
change and other exchanges open.
This was evidence of confidence
supreme
And
so
formance
I
of
duties
in
our
own
These make their several
;contributions to national security
both at this present moment, as
the true area of urgency.
We
Ispheres.
they must in the peace which will
surely come.
{•
In sober fact, throughout this
tremendous crisis of bur national
has beeri'more re¬
markable than the instinctive and
life,
nothing
of the
confidence
immediate
na¬
tion in final victory.
Nothing has
done more to shatter
our enemies.
the hopes of
'
be
-
.
Confidence in time of peace is
f
the
confidence
that
provides
an
atmosphere in which a vigorous
and productive national life can
be lived.
ity,
That is the only atmos¬
phere in which business under¬
takings can be carried forward
laws of
soil,
are
But
Do
ety,
noon
re¬
owners
of
that these groups perform
their duties responsibly, that they
fulfill their obligations to
each
lieve,
to
dynamic soci¬
frozen
a
me
a
society?
It
that confidence rests
this city
provides one of the mightiest ex¬
amples of the change which pro¬
change,
upon
and
others, that it is the judge of its.
own behavior and, finally, that it
is
privileged-to make exceptions,
in its own favor, to principles of
conduct
which ; apply
to
other
peoplei;-;):
*
Of
We
of Detroit who faced
change to war had
they could meet
that
change, because already they
of the first mag¬
nitude in peace-time.
this
had met changes
vance
on
the
armed
wheels
you
♦
.
an
ular
example the
disclosure of
formation
full
and
reg¬
pertinent
in¬
concerning the-financial
condition and operations of listed
listing.
: -.c.
•
••"The task of
tions
that
persuading
disclosure
corpora¬
is
needed,
that it is in the public interest and
in their own interest- has some¬
times
been- difficult.
derstandable.
;•
A
J This is
business'
un¬
man,
sible
in
the
few
a
past to himself or to
he
complex
their
in
factors
econo¬
mies.
made
which
nations,
the Axis
slaves
of
their own
people before undertaking the en¬
slavement of others, muzzled their
fact,
of
is
business, a necessary part of the
machinery which supplies capital
to business so that business can
supply jobs.
The Exchange pro¬
vides, in the interest of the pub¬
lic, a great many safeguards—too
numerous
Exchange,
by
free
market,
constantly ex¬
is
Manifestly, its position requires
the New York
Stock Ex¬
change perform responsibly. What
can be said of its present perform¬
establishment
of
the
prices
by
This is the result of ef¬
men, by human beings
trained to their task.
I have high
speed.
by
.
,
I mention this rule for the pur¬
emphasizing,
of
I
as
have
often done in the past,-
that anyone
who is unwilling to inform him¬
self as to values, or have some
competent person inform him, or
cannot afford to take risks,
who
should stay out of the
we
ness
public
'A
customers.
:
open
the
it
with
want
is another
market.
do not want.
a
by
clearness
Let me say
under-*
be
to
everyoneL^we
race-track
'
of busi¬
type
do
,
that, in the modern corpo¬
ration, management was divorced
from
as
not
Our
is to provide a
that merits the con¬
purpose
market place
fidence
and
use
However
in
any
large human undertak¬
present for
All
little
this
The
thesis
may
its
or
possible
im¬
pact upon the public mind,
A power vacuum will not exist.
as
any
other
some
state
may
have
whole
not
promptly
Power from
as
will rush in, and the
tempted
be
that source.
I
it
vacuum.
source
to
supply
-
sympathy
no
thesis
that
with
this
management is
responsible.
consider
I
it
shallow and unrelated to realities.
But
-
let
we
hands,
that
frankly
situation
new
a
on
containing
problems
being solved,
the problem of re¬
far
are
from
them
among
recognize
us
have
that
our
sponsibility to owners.
Widespread ownership of cor¬
porations is hardly more than two
decades
old.
It
is
one
of
the
soundest things that could happen
to
the
country.
It
distributes
wealth.
of
mobilizes
It
many
for
giant
It has created
a
the savings
achievements.
type of pro¬
new
fessional manager of a competence
hitherto
by
panies.
conse¬
have been accepted, no one of us
can afford to pass lightly over its
unknown
economic
in
his+ory—of vast usefulness to
ciety.
so¬
If, with these benefits, wide¬
also
presents
spread ownership
problems,
with
let
us
approach them
they can*be
confidence that
solved.
responsibilities of management,
and I refer
particularly to the
many points in the opera¬
of the industry of finance, managers of publicly-owned com¬
ing. the opportunity is
and in
responsible to no one.
Stockholders,
according to
this
thesis, had no practical method of
enforcing their will upon manage¬
ment, or even of learning what
was being done with their money.
good will, can devise.
tions
stockholders;
quence was
It does
money.
belong in our market.
responsible
people—a market that helps the
admiration for them.
flow of money into business, so
As
a
result, a great bodv of
that business can provide goods
opinion as to present-day values
for consumers and jobs for work¬
and prospects, centers in this one
ers.
,-w*.
spot.
It is the fairest system, I
Now what shall be said of the
believe, that sincere men, men of
have
confidence.
clared
and the circumstances of these
There
for
into his
thesis, set forth with ominous
emphasis a dozen years ago, de¬
Nature will abhor
,
mechanism
in his business, he has to
A
implications,;
ers
people's
other
posed to certain dangers. One of
the greatest of these dangers is
that its facilities may be misused.
pose
that
needs
take them
mem'ber firms know their custom¬
do we make of
.
money
very
of the fract that it conducts
reason
a
here.
to mention
Stock
The
confi¬
freedom?
The
serious
a
reflecting our
•What good use
ance?
Ours is
matter
free markets.
confidence in victory.
as
responsible.
utmost to run a well
a
our
system under which our business
is done and our lives are lived, as
well
our
ordered market.
in the survival of the free
dence
our
We do
Recognizing this danger and be¬
ing jealous of its reputation, the
Exchange has taken many precau¬
tions.: Among these is an explicit
rule
which
requires
that
our
market today, as
Our
of
those to whom we are
.:
contrast,
At
made, fire your shells from your
guns, rain down your bombs upon
the enemy from the airplanes you
have helped to build.
;
as
when
ad¬
forces
mutually agreed upon as in the
public interest.
I might mention
reveal
fort
steel, steel was made to take on
universal mobility.
Steel was put
on wheels—for use by everybody.
our
Ex¬
particularly if he has been.respon¬
repeat, is the danger.
the financial community
I
Here,
of
Today
the Stock
on
Management has, in most
cases, been cooperative with the
Exchange in the many measures
;
"
not
confidence
change.
when it begins to entertain
groups
ing one hundred and fifty years.
It functions with smoothness and
men
porations listed
the: feeling that it is isolated from-
stood
gigantic
fi¬
the
community and manage¬
ment;; are V necessarily numerous
and close. ; These relations have
already had the effect of increas¬
ing public confidence in the cor¬
the other and to the pub¬ companies.
Agreement to make
Danger arises for any of these •this disclosure is a prerequisite to
on our market has been
worked out over a period exceed¬
r.
A
the
deficit^-'*A';'
a
between
to
significant change in national
living was produced first here in
Detroit when suddenly, in the age
duces confidence,
business
enterprises, in proportion as the
people observe, and as they be¬
in
only reliance?
our
believe in
or
seems
that
is
we
The
is based
Confidence
sponsible performance. The peoiple of this country will have con¬
fidence in government, confidence
;in management, confidence in the
Stock Exchange, confidence in the
stockholder
certain qualities of human
throughout the centuries,
not changed.
,/ v>};
one
lic.
high places, and we know today- can guard against it, first, by up¬
jus¬ holding high standards of ethics in
tified.
The markets in these na¬ every conscience and every cor¬
tions have been, all along, free to ner, and, second, by exposing our¬
reflect their appraisal of all the selves to constant scrutiny from
nature
(successfully.
V
stabil¬
At least we know that the
Nature, the fertility of the
ing.
relations
nancial
how well that confidence was
conduct
that which is unchang¬
upon
also
:
V; Our confidence in war must
carried forward into peace.
fidence rests entirely upon
respect for
no
The
know
country
in
apt to assume that con¬
are
The people of this
have
and of
success
Americans
owners, does not like to
his intimate affairs.
But
markets,
virtually
suppressing
command.
them, not only to prevent the free
say let
question be
mutual
obligations of
manage¬ flow of capital but to stifle any
raised, but let confidence, funda¬
ment, of stockholders, of govern¬ expression of those terrible ap¬
mental confidence, be unshaken.
ment and of finance is now. Pres¬
prehensions which the doomed
Let us strip this nation to the
sures that
are building up could
nations have long felt.
;bone, if that will give us victory.
But our moments of deadliest
provide the causes of later catas¬
\
Let us have confidence that our
trophe if we are complacent.
peril—the Battle of Britain, Dun¬
commanders, our men, will win
The
most
important area in kirk, the bare respite at Alexan¬
this war.
which preparation for peace and dria,
Pearl Harbor, even . these
!: Let us attend to our duty.
for a sound post-war economy lies
grim days of the Nazi break¬
; ; And now may I recall you and
not in our factories and in our through in Belgium—have not in¬
myself to a consideration of our
banks, but in our minds.
This is terfered with the open,,'-orderly
obligations to each other, the per¬
in
All
!
of society.
advantage
this.
or
genthau, declared on-.the--flpor^of
It is a vicious doctrine the Stock Exchange,.pot/';so^ long:
of class warfare introduced ihto- ago, when the war was in-a. crit¬
our free nation.
ical phase, that he knew, of ^noth¬
Speaking for the sections of the ing which would better, demon¬
financial and business community strate to our enemies how strong
that I know best, this theory of this country is financially *thdh to
unrestrained pursuit of personal keep the New York Stock Ex¬
must
the acid test of
upon
to
money in research for preparing
indirectly, considering and analyzing factual information
the use made of its facilities by relating to the securities on our
individuals in the purchase ■ and trading list: Those who scorn fac¬
sale of securities; by banks, life tual information and who conduct
insurance companies and the like, their operations on the basis of
and by listed corporations,*-vit is tips, rumors, hunches and impulses
They
used
by more people than - any are misusing our facilities.
contribute to
market instability
other financial institution.
It is the nation's principal mar¬ and they render an absolute dis¬
service to our general economy, v
ket for securities.
v/-v;:A:"•
All groups, whether comprised
We can take great pride in the
fact that only free nations permit of members of the financial com¬
their securities markets to func¬ munity, of industrial and business
tion freely in times such as these. managers, of labor, of investors
The United States and
England or speculators—and of Govern-,
have
kept their markets. open ment—have a direct responsibility
many
directly
the
by
rules,
and his profits
be redistributed to the rest
severest
fighting forces.
We expect reasoned,
ity, but our civilian government,
representing all the people, still is
great
financial institutions. But
sent, is only one
_
in our
franchise, no privilege, to conduct
civilian ease, complain in dejec¬
itself differently from the rest of
tion merely because total victory
Shall we,
tories.
Exchange,
which I have the honor to repre¬
This
:
been trying
These have
•
•
-
at yourself first.
close look
in our human beings, in a Christian civnnnrtiinr
men—and in ilization, employ in their conduct.
unshaken,
and
commanders and our
people, to take a
talk about other
Oi Moral
fearless
alluded.
good thing, before1 you
tionships to which I have
Business Men Not Devoid
(Continued from first page)
Thursday, January 18, 1945
COMMERCIAL & FINANCIAL CHRONICLE
Government itself in two World
Wars
the
has
undertaken
people
to
to
becoming
educate
security
.
owners.
triumphant performance of
first
A
direct
result
undertaking, was
a
of
the
nation¬
this war
wide ownership interest in corpo¬
those points are well known. They has brought to it a -high degree of rate
enterprises. The second un¬
It is no more dertaking already has; created 80
Whatever changes may be re¬ are marked, like dangerous traf¬ public confidence.
other and to all the people.
fic intersections, with records of than management has deserved. f,: million
stockholders in govern¬
This statement introduces prin¬ quired in converting from war to
When we enter the peace, I be¬ ment—Owners of War Bonds..
great volume safely handled—and
ciples of moral conduct operating peace, we have confidence they
V , lieve the public, which eagerly ex¬
will be made.
"
"A •
•' .V:-"''/: with an occasional wreck.
as rules of restraint in all of our
.The nation must find means of
Traffic officers and traffic lights pects merchandise, improved un¬
We have
inter-relations.
confidence that our
teaching these people how to be
will
not
prevent all accidents. der war techniques, will desire
will remain dynamic.
responsible owners of these bonds,
Shall it be thought strange if in economy
not only to buy these goods but to
how fo hold them so as to realize
such a discussion as this I present Only a dynamic economy can give People themselves must be care¬
ful;
They must accept and prac¬ buy into them, to buy into the their full value, how to
high-level employment. ~ :
guard
the claims of moral restraint and'
companies that make them.
■
tice responsibility.
moral leadership?
against schemes to swindle them
Today we are considering three
It may, indeed,
The public may prove more op¬ out of them.
The
Exchange ' has machinery
The way to protect
seem
strange to a group of new fields particularly in which re¬
preventing accidents.
The timistic than management on the the people is to inform them.
economic theorists in our midst. sponsibility is needed as the basis for
rules of the road, both those made question whether profits will be
of national
confidence-—the
re¬
These theorists would view with
The problem of consulting .own¬
cynical unbelief any voluntary re¬ sponsibility of management, the for us by government and those ground small between, taxes, the, ers of securities is not simple.
straint upon the pursuit of self- responsibility of security-holders, we have made ourselves, are con¬ upper millstone, and wages, the Management in a small business
lower.
Accustomed
to
seeing can
advantage.
Under their theory, the responsibility of the financial stantly in our minds. There is no
readily consult a few owners.
perform
miracles, But
community. And whether the peo¬ chance of their becoming dead let¬ management
the business man is helplessly ob¬
government with millions of
ters—they are very live and they the public may expect a miracle bondholders and
ligated to pursue his own eco¬ ple as a whole are actual or po¬
management in
tential owners of securities, we are honored in the observance. of profits under impossible handi¬
nomic advantage,
indifferent to
selfish
or
improper conduct.
American management in
>
,
'
-
.
.
,
.
a
the
restraints
which
considerate
have to consider the whole
people
Where
our
rules and policies are
caps.
*
corporation
with
thousands
of,
OOT
-
FINANCIAL CHRONICLE
THE COMMERCIAL &
161Number 4352
Volume
,
275
'
rely-
must
r
upon
broader informational methods.
■
/
Making the
,
U
Appointed By Adams, Head of
National Ass'n of Securities Commissioners
corporation report
truly readable and informative to
the average
stockholder is one an- •VV Clarence H. Adams, Securities Commissioner for the State of
J swer to the problem.
Some cor- Connecticut, and recently elected President of the National Asso¬
porations have succeeded admiciation of Securities Commissioners, announces the appointment of
:
L rably in this direction.
Others
the following committees for the National Association:
supply only meager information.
: Still others, even before the war,
Harold
Johnson,
Treasurer
(ex-officio)
Nebraska
/
IV.. ///-.// /'//////.///•//''
^issued their reports later than
,
,
*
seemed warranted.
The examples of the
;
commended to the
James
!
•/-..
ficio)" Ohio
few can be
Edward J. Samp,
Trained
many.
Horace
'
Thad
Ruth
VV'V'''
Harold
E. 'H.
Johnston,
S.
Greene
Maurice Hudson,
Hal
G.
A.
well
are
prevent
this
The
these
idle fears.
management,
of
become
under some conditions, to
.
Chairman, Florida
Then arises the danger to.
j ;looked.
which I have already
referred, the
privileged to defrom principles of conduct
//j.; danger of feeling
part
;
fx which
apply to others.
The
sense
of
,
'1
.
?
responsi¬
direct
the public must at all
times pervade the management of
bility
John
to
Florida
L. -Carter,
:
If
owners
are
told how the busi-
attd/the.results are
satisfactory, the owners will not
be ungenerous to management. /
ness"-is
H
V
run,
point, with
wish to make the
I
U"}/full/emphasis, that if anybody is
•,// the friend of the security-holder,
is
/:
New
is
Stock
York
the
Ex-
customer
,
/
-'
,
; v
:
j^derstsfhd.theResponsible pertorrrib
/,y.^ ance of management, their confi4
denceTs increased.
'
+
holding public?' In what way can
they; strengthen the basis of con^ fidence?/;; Let. us encourage practical; thoughtful public attitudes
rin owning securities. This means;
among other things, doing business with responsible brokers...
/
///1
.
;■'
i
-.
.
Richardson,
■
,—/
~
much as does the citizen
fuses to vote.
who re¬
t
„
about
rities
task,
it has learned, for exam¬
Merkel,
F.
animal
judgment
use
All
First
v,
Notice is
'
■-
-
'
1
/
will soop require
capital,
in very large
"This, nation
!
■'
,
,
4''
.
The welfare of the peo¬
?
•
ft to
;
own
them and. who
will 'own
have been mobilized for this pur¬
them/.' The Exchange frequently pose before, and they will be so
; gets letters": from people saying mobilized again.'
t
!,
b/ >" they- Have life,, savings of a few,
Responsible performance by the
•H;;hundred or a few thousand dollars
industry of finance,: by the man¬
'and -want advice as to how to inagers of business enterprise, and
/ /;
;,« vest,-the nest-egg and get a good
by.; stockholders,/ each : in • their
/f: v H return.
Our member firms, I am
spheres, will form thej basis of
ftold/ also receive such Tetters.// -? 15 confidence. .-As performance is
':
//;/> There is but one answer* "Buyimproved, confidence i§ increased.
f
v/
b
%
-
said
-:
i
for
-
;/•/ :►
> ;/
../'//!
show a large percentage of his
capital invested in ■■ Government'
•;
j; securities./ ,V /a
;
•
,
,
The ex-
perienced investor does not need
that/ advice. / His portfolio will
•
v.'b
new
] vestor of small means.
//;
■:."v;/
but particularly for
and ^inexperienced ,in-
anyone,
the
/■/
4
-
/
Kb//
But even experienced investors
not,always act responsibly.// /
/
do
■
Stockholders too often disregard
the efforts of management
them
•
read
information.
to give
They do not
not return
proxies, they do not attend meet¬
ings even when they easily could
do so.
Too many stockholders do
not
reports, they do
behave
like responsible
own-
/1 have spoken about these three
of
obligation and
responsibility', because, in my be¬
lief, if the- various groups in; our
economy perform responsibly, less
opportunity will be afforded those
who would supersede private per¬
formance by an
all-encroaching
state.: l
areas
private
So, I say, let us all fulfill our
obligations with a high, sense of
responsibility so as to increase
confidence.
national
In the
fidence
that
of
•
of property.
They refuse their
share in the democratic process as
ers
must
has
of Trust, as amended,
aggregating $15,000 principal amount. .
Certificates so to be
pany,
terest
face the/ difficult
The confidence
sustained us in battle
the
period that lies ahead.
of Trust
amended and modi-
Certii-
by February .15, 1945, such
redeemed will be due and payable on
date, at the principal office
l.. :■
February 15,
.
of Chemical Bank & Trust Com-
165 Broadway, Borough of Manhattan, City and
on said Certificates will cease to accrue from
State of New York, and inand after said date.
Said
/;/:K Certificates^ (1) in the case of all outstanding Certificates with all interest warrants
tliereto attached maturing on and after February 15, 1945, and (2) in the case of
// ' ■ ' undelivered Certificates with all interest warrants thereto appertaining, are required to be presented and surrendered on or after said date at said office of
'/;■ •"/ Chemical Bank & Trust Company, for payment and redemption.
; /
;
"
Upon such presentation and surrender of
warrants, there will be paid the redemption
:r,v"/ /
each Certificate, with all such interest
price thereof being an amount equal
principal amount of such Certificate, together with all interest due thereon
at the date of such redemption, viz., February 15, 1945, (which shall include any
additional interest which may have become due and payable with respect to such f/1 Certificate prior to or at the date of such redemption), j/r
to the
.
"
z/
'.
'
'
Chemical Bank & Trust Company,
,.
Deed of Trust, as
as successor
Trustee of said Mortgage and
amended, will collect the redemption
price and interest payable
respect to all Certificates heretofore executed by,it but which shall not have
been delivered as provided in Section 1 of Article One-of said Mortgage and
of Trust, as amended, by February 15, 1945, and upon the surrender for cancellation
to the Trustee at its said office of each outstanding'First Mortgage 5%-% TwentyFive Year Sinking Fund Gold Loan Certificate issued under/said Mortgage and
with
Deed
/': /:,
•.
/:
•
Deed of Trust, prior to
■
thereto
an
its amendment, the Trustee will pay to the person^ entitled
to the redemption price and interest so collected with
amount equal
respect to an executed and undelivered
Certificate of an equal
Paramount Pictures
(forpierly
Paramount
By BARNEY
to
be carried forward into
difficult
the Mortgage and Deed
Chemical Bank & Trust Company), as Trustee, as
atmosphere of that con¬
better
"
.
hereby given that as provided in
..
peace.
Certificates
15, 1955.
the nation will be
equipped
tasks
,
Mortgage Sinking Fund Loan
1945, the redemption
/
War Bonds."/ That is sound advice
«.\-
Corporation
>
Mortgage and Deed
The
-vV
•
-
asking.
Chas. T. Houston, Tennessee.
Supplemental Indenture dated as of February 15, 1935 between the
Corporation and Chemical iBank & Trust Company, as successor Trustee, the
Corporation has elected to redeem and hereby calls for redemption and will redeem'
on February 15/1945, all of the First Mortgage Sinking Fund Loan Certificates
(hereinafter called the Certificates) which shall have been issued and are outstandIng on February 15, 1945 under the afore-mentioned Mortgage and Deed of Trust,
as amended, together with all Certificates heretofore executed by the Trustee but
which shall hat'have been delivered as provided in Section 1 of Article One of the
ficates
ple will depend upon the flow of
such capital into business enter¬
How to o\Vn securities and manprises, to expand our economy and
11 age investments is not. well under- provide/ high level employment.
v; ' stood by! many peoplev who want The mass savings of the nation
'
Boston,
was
pany (now
tied by the
.
That has been a
objective of the New
York Stock Exchange for a great
amounts.
Square,
Dated: January
16, 1945,
Mass.
Copies of this may be had for the
1926 between Paramount Broadway Corporation (the name of
subsequently changed to Paramount Pictures Theatres Corporation,
hereinafter called the Corporation) and United States Mortgage and Trust Com¬
which
principal
venture
Paul
Office
Maine
V. Deames, Illinois
Hoyt,
January 1,
dated
'/ '
But the
-
Missouri
Busby, Vice Chairman, Indiana
Due February
possible information should be
benefit of se¬
;;
Chairman,
inter¬
esting, according to a bulletin just
issued by Lerner & Co., 10 Post
Maloney,
G.
Central
Iron and Steel also appears
(The Paramount Building)
%
marshalled for the
mapy;years*
Bright Possibilities
The current situation in
McNulty, New York
Samuel
i
knowsHthe less he Tisks.
he
Committee
Russell
-
>
Exchange
Uniform Law Committee
Hal
other useful and inter¬
during 1944.
Paramount Broadway
who has to
matter what he does.
no
more
F.
effective
together
Kansas.
Daugherty, California
Brown, West Virginia.
M.
'
take chances,
and
Edwin
1944,
world, and the highlights of Gov¬
ernment regulations and controls
Harold Johnson, Chairman, Nebraska <■ .
Paul V. Deames, Vice Chairman, Illinois
William F.
sugar
in
date
To Holders of
just as the farmer faces frosts,
floods,
droughts,
corn
borers,
weeds, and weevils.
I am a corn
farmer
by trade, and so I can
an
Massa¬
Hoyt, Maine
Stock
refined
and
same
NOTICE OF REDEMPTION
siire, the investor faces
uncertain factors in the
movements of security markets,
is
Chairman,
Offer, Rhode Island
Hunman,
Robert
'
be
Man
W.
L.
Chairman,
many
/
V.
Committee
Wilson. Georgia.
John B.
Vice
the
with the monthly averages.
It gives
Committee
Securities
Jenks,
unique calendar provides
1945 the prices for
esting material such as the har¬
vesting periods of the sugar crops
in the various countries of the
chusetts
N.
Trusts
raw
Chairman, New Jersey
Merkel, Chairman, Ohio/
F.
Warren
Committee
LarSon,
tion to national Wealth, i/.
To
Industrial
and
is being distributed by
Lamborn
&
Company, Inc., 99
Wall Street, New York City.
;
the world,
for each day of
.
Johnson, Nebraska
Frank
the sugar
industry of the United States
This
:
Revision Committee
Ralph- F. Knudsen, Iowa
Maloney, Missouri,
Ohio
John F. Hueni, Vice Chairman, Michigan
Simon M. Sheldon, New Hampshire
.Edward J. Samp, Wisconsin
Paul V. Deames, Illinois
Harold Johnson, Nebraska
James
owning and managing secu¬
as
Harold
Arizona.
Examination
Investment
however, is not to
find fault, but to- find remedies.
If the public should learn as much
Our
Edwin
Theodore
(ex-officio)
!.»
formation pertaining to
Pennsylvania
Russell
James F.
Chairman, Florida
Ofstedahl, Vice Chairman,
Minnesota
■' ■// ■//•■
D. D. Murphy, South .Carolina
Andrew J. Markey, New Jersey
Harold Johnson, Nebraska.
J.
.
:—
:.
Weast,
V?'.
V
:
Committee
Forms
Chas. T. Houston, Vice Chairmart, Tennessee
Hal G.
Colorado
—,,,
Dixie
Convention
curity holders.
What- shall be said of the stock-
H
.
Nebraska
Vice
Chairman,
/^//./v--/./ ;VV/. Vvv/, V.;//
S.
,
President'/(ex-
Vice
2nd
Richardson, Secretary
of speak from experience,
Hour membership. \•
j, :We are also the friend-of man-.
:
agement, ' not .less thanofl^the
stockholder. As stockholders un-.
.
.
the
change.He
»
SEC,
Tennessee.
Houston,
J. Markey,
Andrew
Committee
Publicity
Johnson, Chairman,
Mrs.
President/ (ex-
Vice
publicly-owned corporation. ple, about Victory Gardens, the
Stockholders sometimes complain, public welfare would be served.
'and-sometimes with justice, that If it was a national asset: that city
management getsft paid and they folks should know how to raise
do not.
They question the size of corn and tomatoes, and worth¬
salaries.
They want dividends. while to run a great public edu¬
After all, they own the business. cational
campaign about it, we
Perhaps management has been too might find some value in a pro¬
modest in failing to make its value gram to teach folks how to own
Hand competence known to stock¬ and
manage
securities - intelli¬
holders.
gently and thus make a contribu¬
v
and
T.
of Lam-
Calendar containing
statistical data and other vital in¬
Illinois
Constitution
Calendar
The 13th annual edition
bora's Sugar
Daugherty, California
Deames,
Myron Honigman,
Chas.
'
Wisconsin
Ruth Ruen, Michigan
Kenneth A. Weddle, Indiana
Walker Wood, Mississippi
-
V.
Paul
Edward J. Samp,
* (ex-officio)
,
Arkansas
officio)
Allan S.
/ >..
//./:/://.
.,
every
:
"
.
Wedgwood, Idaho
Treanor,
Consultant,
Registration
Edwin M.
J.
Allan
*
Larson/ 1st
Edwin
ofiicio)
itself bureaucratic cannot be over-
;
.
President
Adams,
Connecticut
mere
temptation
Committee
Executive
H.
Clarence
bestowed.
are
lf)45 COMMITTEES
/- <
J.
Nor
Thirteenth Edition of
Ralph F. Knudsen, Chairman, Iowa
Harold Johnson, Vice Chairman, Nebraska
Vice Chairman, Oregon
Samp,
Colorado
possible encroachment of the bu¬
reaucratic state.
Any pains taken
to
A.
Uniform
Harold
H. Adams
Myron
•
Education
Clarence
J.
Lamborn Sugar
Philadelphia.
Wisconsin
Graham, North Dakota.
J.
Edward
J.
Committee
Chairman, Missouri
Honigman,
Vice
Chairman,
Pennsylvania..Simon M. Sheldon, New Hampshire
Andrew J. Markey, New Jersey
Allan S. Richardson, Colorado
Russell Maloney,
Nebraska
Fuller, Kentucky
James
Maine
B. Sessions, Texas
Hoyt,
Horace
and to- the public. "• Thus
management fs safeguarded from
.the dangers of isolation,- among
the most important of which is the
management
Chairman,
Vermont
E. Burns,
George W.
owners,
by
Vice
Johnson,
E. T. Copenhaver, Wyoming
Committee
Membership
~
Pennsylvania.
Revision
Salesmen
Chairman, South Carolina
"
f • lie function, in keeping constantly
before its eyes the duty to make
frequent and lucid accounting to
d
■
//,')/'//;Vi
Roy F, Delaney, Michigan
Oregon.
Hudson,
//VV/ '.V/
Alabama.
D. Murphy,
D.
.
Murphy, South Carolina
Michigan
S. Johnston, Florida
MaUrice
the democratic process.
Its greatest virtue lies in ac¬
customing management to its pub-.
-
>
Ruen,
Greene
element in
,
D.
D.
public, but with security-holders.
Such measures are an essential
i
"
Florida
Vice Chairman, North Carolina
Eure,
Raymond A. Cox,
/
Louisiana
Kansas
Huffman,
W.
Robert Harris,
Committee
Convention
major duty,, to the task of maiqtaining relations not only with the
■;
V.
Vice Chairman, Illinois
Chairman, Texas
Cope,
Charles M/Ward,
Chairman, Wisconsin
Samp,
Deames,
Ralph F. Knudsen, Iowa
Hal G. Hoyt, Maine
M, E. Bristow, Virginia
Vice Chairman, Oklahoma
John L. Carter, Arkansas
/ V
B.
Milton
Larson, Chairman,
Edwin
Paul V.
Law
Charles
J.
/
Edward J.
,
,
.
Sessions,' Texas.
B.
responsible executives of top
rank can well be assigned, as ;a
.
;
New
Wisconsin /,
and
-
Committee
Securities
Sessions,
(ex-ofLicensing; Dealers, Brokers and
;
;
•:/
1
Committee ■
Jersey //"/■/"/''//;/ '://./c////:/V:
•
Markey,
J.
Andrew
Oil
Horace B.
Secretary
Field
Merkel,
F.
,
.
Allan S. Richardson, Chairman,
*
:
Examination
Committee
Colorado
Maurice Hudson, Vice Chairman, Oregon
Thomas A. Swayze,. Washington
Laurence Taylor, Utah
J. Sidney Coleman, Montana.
Reuben W. Heflin, New Mexico.
Gommiitees
Dealers
and
Brokers
Committee
Securities
Mining
stockholders
•/
principal amount.
Theatres Corporation
Broa/hvay
Corporation)
BALABAN, President
Thursday, January 18, 1945
FINANCIAL CHRONICLE
THE COMMERCIAL &
-
X. /
\J
in
been
Additional Expressions Anent
Peacetime Tiaining Proposal
the
nated with the curriculum of
of them having
for 10 months
two
time,
some
school
army
This
action.
young
a
This
standing army and,
training;
by a sensible
preparedness, tend to
the peace and security of
nation and of the world.
military
If
Also, such a system would help'
become physically fit,
and teach them
obedience and
discipline.
•<
■
Some years ago, this
reduced to three
five years.
enlistment
Partner, Hornblower &
New York, N. Y.
Weeks,
National
was
"exemption
cellent thing.
tion
while
mind, no health program is com¬
plete without training in discipline
and morals, which should form
an
also
they were patriotic;
because
United
the
to
Gov¬
States
ernment;
One
•;
i
year's
.
doubt
Let
not
prepare
keep
nor
them
prepared
for
war
a
which may
start
num-,
a
future
those
years
Mili¬
hence.
im¬
the
and
of
plements-
warfare
change so rap\
-
.Theodore B- F«™»«
few
that
idly
'
_
ap-
proximately
a
after training, such
training would possibly be obso¬
years
lete; hence prior to any war, thou¬
sands of men who; have only had
one
training,
military
;:yeai\ of
would have to be 'trained all over
again; ••
},y
- •
•.
Impossible to
properly train
men
physically in one year and
also to hope that after dropping
that physical training at the end
t
^
,
of the year,
ness
that such physical fit¬
attained
so
man
for any
after.
creased number of men wanted
one
many
men
whether these
tried' to
drafted
were
enlist
The
men.
-
so
physically unfit
does not tell us
were
for this last war,
who
that
statement
of
just
men
finally turned down as physically
unfij^by draft boards throughout
thenation
causes
never
rejected
were
which
the
in
be adjusted by
main
any
for
could
amount
of
physical training, especially
witii one year's physical training
between the age of 18 and 23;
Discipline Agreement Baseless
been advanced
It has
that
compulsory training would
this
give
for
properly
example of young American man-f
is
especially so, when
considering the conditions under
which he is .expected to receive
It
exemplary training, as it must
be remembered that -he* may ;be
forced against
his will, to enter into compulsory
of the majority
training;
The
been
cians
•;
v
educational
stressed
and
by
some
feature
has
certain politi¬
people in the
coupons
libraries.
and
tables
These
some, of
course,
be
4
yL.- In the
; ' Bishop E. J. Randall
■
to cost.
be attached
be made self-sustaining as
and
armories
competitive
baseball,
football,
basket ■ ball,
bowling, swimming and billiards,
made a part of the activities. The
library with any necessary ad¬
juncts, can be installed for perma¬
nent
educational
such
added
mories
can
purposes.
With
attractions, these
ar¬
be made the club-house
centers for our voung
mem
They would not only be the
poor young men's club-house, but
they would attract each and overy
youth, because of the type of fea¬
tures I have mentioned. Certainly
with a'setup like this, the amount
or
you*h
domination,
seems
to me
incomparable, h
;
,
BARTHOLOMEW O'TOOLE
President
'■'&
I
Pullimn Trust
Savings Bank, Chicago,:III.
am
reluctant to express a posi¬
tive
opinion on the subiect of
"Compulsory Military Training in
Peacetime."
S^vfm of
mv
favor
at the
*•
children have been
serving in the Armed Forces for
W.
KORELL
it
:
:
apparent
seems
thereto, holders of assented
■?,
forum and other expressions
of
public sentiment that some
program of compulsory post-war
training is inevitable, I agree with
the opinion of Dr. Cyril F. Meyer
("Chronicle".. of Oct. 26]: "Why
hurry?"
the
return
the
armed
forces
chance
to
men
in
;
the
and
express
their
sons
to
receive
com¬
'
"
pulsory military training. There
are
too many phases to be an¬
alyzed and considered for 'any
quick decision, particularly be¬
cause
of its far-reaching conse¬
I
am
f
■?
not inclined toward com¬
quences,;-
pulsory military training, remem¬
bering that many of our fore¬
fathers left their native countries
.
*
forth
*
' *
-
provisions of
(hereinafter referred to
fe " * ,n * q
of bonds which have*been so
•L'L'L;
"
If, however, -it be the will of the
majority of our people, I should
favor a military course coordi¬
requesting letters of transmittal, kindly indicate
already been stamped, or in connection with the'
presentation- of; bonds and coupons which": have not;,
been so stamped.
In the-latter case, kindly 'indicate y
;
in: tendering.^bonds of the
have
whether
,
-
01*
not the letter
of transinittal is to be used;
City of : Santiago,
ConsolidatediMunicipal Loan.,
CAJA AUTONOIVJA
7
-
.
.
.
or
the
v.-'7■ >'V
DE AMORTIZACION DE LA DEUDA PUBLICA
(Autonomous Institute for
;
.
much of the arrogance
with the resulting caste
distinctions, to wish their children
to have any part in it.
coupoms>in order.to receive
7y
tarized.
their day,
of bonds of the aboye'/rssues^
to the Plan, said payi-irent- will be-made1
7 whether the letter of transmittal is to be used in connec¬
tion with the presentation for payment of coupons which
.
to embark for America
for the. very reason that they did
not want their sons to be mili¬
/They had, witnessed too
and inso¬
of the ranking officers of
1938, the presently
more
When
;
years ago
lence
bonds of
presently announced paynient at the rate of $11,26
per $1,000 bond, and presentation of bonds with appur-;
tenant coupons for stamping, .should be made at. the ^
office of the correspondent of the undersigned in New::.
York City, Schroder Trust Company, Trust Depart-ment, 48 Wall Street, New York 5, N. Y., together
with an appropriate letter of transmittal.
Letters of
transmittal, and in the case of dollar bonds of the City
of Santiago and the Consolidated
Municipal Loan
copies of the Prospectus,, may be obtained at the office .
of said correspondent. - V'..L .- L; •
give them a
their views on
the subject and answer the ques¬
tion as to whether, or not they
want
with
the
Let the matter await
of
.v
they-have assented to the-
Presentation of stamped
from
your
the
and :
Loan
announced payment
President, Underwriters Trust Co.,
y'L;- V;;. New York City
of the Republic
Bank of Chile, Water Com¬
detailed notice conccruing the presently,;;
will be furnished with form letters
of transmittal.'
V I"
(..';y..
'7.1
,A.
CHRISTIAN
"While
made to
military
against presentation of the bonds.'.witll 'all 'unpaidcoupons attached for stamping to'evidence their assent :
to the Plan on or before December 31, 1945. '2L '374/"^
of enacting
this subject
on
present time.
the added features could
Athletic directors can
in
not
law
case
assented
not
*
are
Others
added and
be
stamped on.
announced pay-, '
ment will be made against presentation' and surrender y
for cancellation of the two coupons corresponding to
said payment under the Plan, and?the bonds need not >•
case
L4 be presented.
J,
am
should
February 1, 1945, in accordance
after October 24,
or
.I
quickly.
rather
of
could,;;.of
"Plan").
In the
of the added features I can
think
the
as
armories to be constructed/
some
Provisions
the aforesaid Law and Decrees
I
make
payment will be made only in respect ofy
stamped with appropriate legend
indicate that
to
any
their
overcome
them better citizens.
bonds which have been
number of years be¬
track, basket ball courts,
bowling alleys, billiard and pool
to
physical deficiencies and to
corresponding to said payment as set
The above
simple inducements were added to
make membership in the National
Guard more attractive.
Added to
a
them
train
should
would
of the above loans will be entitled to a payment
at the rate of $11.26 per $1,000 bond against presentation and surrender for cancellation* of the two
/
plished
again
and
even
to
a
greater extent as regards vol¬
untary. re-enlistments, if a few
be
physically dis¬
any
periods
indoor
*;;;
are
qualified to join the army
be given other work which
in letter of transmittal.
far
this
one
issued pursuant
7
armories and in new
would
swimming pool, gymnasium,
who
Those
,
mented
hood.
error.
in
an opportunity to
discipline the youth of
of good attained by the bovs of
the nation. This thought certainly
appears ridiculous, in that a youth ,the;n^tion^as against compelling
leave their
without discipline up to the age of ,these i same boys to
homes for one year and to be
19 or older ; could v be
properly
forced under.ithat type of regi¬
molded into a good disciplinary
the'government
tragic
Church, Chicago, 111.
the present
National Guard Re*
provisions of Law No. 5580.7of January 31, 1935
as
regulated by Decree No. 1730. of May 17, 1938 and
Decree No. 37 of January 4, 1936 of the . Republic of
Chile
(which decrees -are now consolidated 7into
Decree No. 3837 of October 24, 1938) and decrees
They therefore had the
advantage of not only continuing
military - training,
but
also of
keeping up to date in new meth¬
ods and implements of warfare.
The same thing could be accom¬
yond.
to "the
who were
re-enlisted
a
of Valparaiso, City of Santiago,
On and after
In place
military training, the
of ten to any
men
were
cases
or
year
period in
sorve/^yyLyY
the
into
hastily
us
old National Guard has had many
who
.
Chilean Consolidated Municipal
training at any one time.
year
individual
an
length of time there¬
The
:!
the
within
with
will-, remain
vast
a
pany
Bishop, Protestant Episcopal
These buildings
added to or
to'the extent of the in¬
increased
men
tary tactics
for
of Chile, Mortgage
MOST REV. E. J. RANDALL
program.
would
who
would only have to be
of
of
ber
tary drilling are ready
I
compulsory service with the army,
and an enlistment for a further
Republic of Chile
foolish en¬
permit
lead
to
what may prove a
and the facilities for mili¬
States
country.
Notice to Holders of Dollar Bonds
of
some
not
us
thusiasm
] '
whole ', United
the
dot
Facilities
of the National
armories
; . The
Guard
training will
men
Armory
Improve
and
protecting this
;■[;<■</,;J ;;
recommend, a limited
of
method
overseas.
However, many favor
compulsory military train¬
young men joined and were dis¬
THEODORE B. FURMAN i
ing are sincere and consider them¬
charged from the National Guard
President, Seaboard Trust Co.,
selves qualified to speak on the
without knowing that they had
Hoboken, N. J. :
subject, but. those who are now
any exemption
from jury duty.
serving our country have had an
"My reasons against compulsory Those who joined - the National
opportunity to learn at first-hand,
military training in peacetime are Guard, did so mainly because they
and they are vitally interested in
liked military life to the extent
summarized as follows:
,
,
v;
the conditions under which their
The tendency toward regimen¬ offered by theJNational Guard and
children must live.
*
'■ '
:
tation;
f:
Terrific cost
as
proposed will provide a safe
fair
control the power of the
of Prohibi¬
states.
the
by
military training legis¬
I think the measures
I
similar mistake will be
no
No
proposed
favor of the
in
am
lation
integral pert of the school cur¬
riculum.
made this time.
certain conditions imposed
under
To my
make their influence felt.
the country
on
boys were
our
hope
duty,
jury
from
hand, discipline and moral train¬
ing, which should be inculcated
by the home, are sadly neglected
except as
religious and other
morale building organizations
I
universal
still in
are
mistake
inflicted
was
L
camp.
;'
York City
W. & J. Sloane, New
During the last war
horrible
the
who
us
this country.
heretofore,
Guard
the
would be an ex¬
those of
tham
was
Re-enlistments were for
one
year periods.
The only in
ducement for a young man to join
years.
universal
T, myself, think that
military service
their contact* with intelligent boys
properly trained military would be unfortunate.
men, we can continue the National
My children, like many others
Guard.
The old National Guard
who are serving in the Armed
has heretofore formed the nucleus
Forces, are all college graduates.
for our fighting armies. Men for¬
I consider them much more com¬
merly had to enlist for a period of
petent to pass upon this question
S. SARGENT
C.
own
of
ber
the boys to
need to have a large num¬
we
whose prin¬
personal
advancement, and the net result of
is their
cipal aim
Guard Training
National
preserve
the
of domination by men
large
CCC
From the
purely physical stand¬
point, it would seem that the
health of
our
young
people is
fairly well cared for in schools
and colleges, through the use of
their swimming pools, gymnasia
and varied sports.
On the other
v
was
27 years old, was obliged
(Continued from page 263)
during his first year in the army
teaching profession. This thought to submit to the orders of some
EDWARD LOWBER STOKES
also appears ridiculous, insofar as
officers who were thoroughly in¬
v
Edward Lowber Stokes & Co.,
a real aid to the youth in training.
competent
and. who apparently
Philadelphia, Pa. ) ?
It might, however, be used as a
owed their positions to their po¬
There
can
be no shadow of subterfuge, by certain schools of
litical ability in civil and military
doubt that, after the war, provi¬ training,
to
obtain
allotments life. I am afraid a large perma¬
sion, should be made for a system from the total governmental ap¬
nent, military establishment would
of universal military training for propriations for such compulsory
lead to a repetition of this sort
boys of 18 years and older.
would save the need for a
Chairman of the Board,
I am definitely
opposed to anything that savors of
who
man,
SLOANE
JOHN
high
but not inter¬
fering therewith.
prior to Pearl Harbor. Just re¬
cently I received a telegram that
one of these two boys was killed
in
college,
or
the Amortization of the Public Debt)
ALFONSO FERNANDEZ,'
Manager
'Santiago, Chik, January 15, 1945
7
ALBERTO CABERO,
L
President
Volume
Number 4352
161-
leaders
to
as
so
their
I be¬
prevent
too much power.
lieve the danger of such
gaining
con¬
a
is more than offset by
improvement in the health
tingency
the
conscription goes far
rather that
to
defeat—which
assure
nents in the dJnited States
Vni
II.
';
;;
v
H.
E.
•
V^'.:,
Executive Secretary,
Friends' Peace Committee,
;
Philadelphia, Pa.
Conscription for military serv¬
icers being proposed as a perma¬
nent policy for the United States
after the
Such measures as
war.
the
Bill
May
now
before
Congress indi¬
cate the trend.
Before de¬
ciding to adopt
conscription as
a
permanent
policy, consid¬
eration of na¬
tional welfare
that
it
Germany of the disarmament im¬
posed upon her by the Versailles
Treaty.
It freed her from old
We
in
for the kind of
been
overlooked by
its
Richard
They
Wood
R,
proponents.
se¬
are
rious
ques¬
That they
tions.
hav£ been over¬
evidence of the
uncritical
acceptance
which is
generally given to proposals like
conscription, which are assumed
to be patriotic because they are
military.
In raising these ques¬
tions, it must be insisted that it
is
conscription as a permanent
policy which is under discussion,
looked is striking
conscription
temporary
emergency measure, which is an
entirely different matter, in its
not
as
a
assured
of
■
safeguard against defeat.
It is
urgently important to ask whether
conscription as a permanent pol¬
icy is not a pretty serious guar¬
antee against victory.
:l Conscription
in the sense in
which it is now used is only about
150
years
It was developed
old.
ty France in the Napoleonic wars.
A century and a half is too short
| time to establish perfectly gen¬
eral
historic
tury
and
a-
laws;
but this cen¬
half of conscription
history raises some questions. It
would be interesting to know of
in which a nation with con¬
a case
permanent policy
against a nation in
scription as
won
a
war
a
which conscription was an emer¬
gency measure,
if at all.
France, inventor of modern con¬
We
powerful than German
ply i
sup
was
the
n g
army
the
*
,
General
that
told
are
Gaulle
de
developed the theory of
The French of¬
Blitzkrieg.
Gaulle's book; the
ficers read de
German army
applied his theories.
in quality,
advantage
a
examination
This
of
inner
the
problem
serious doubts
i Is
not part of
the
to be
answer
found in the fact that the French
army was
protected by conscrip¬
tion
constructive
from
criticism?
When every man has to go into
the
few
army, very
ford
to
criticize.
men
If
af¬
have
can
they
themselves
tary
permanent conscription.
completed their mili¬
they have sons or
to
about
undergo
it.
service,
relatives
There is
tendency to soft-pedal
a
criticism that may make for per¬
sonal
unpleasantness.
A military bureaucracy is like
other bureaucracy—it tends
into
down
settle
comfortable
.
Germany with a new
system
after
freedom from
looks
as
if
some
conscription
years of
18
conscription. It now
with con¬
Germany,
scription four years older, is fac¬
ing defeat by Great Britain and
the United States with conscrip¬
adopted, this time, it is true,
before actual involvement in the
tion
war,
but
as a
Organization of Peace
It
said
that
;
long
nations seek security in their
as
has
been
armed
as
they
are
doomed to total preparation for
total war.
It is becoming clear
own
that
forces,
they cannot attain
security, because each effort to
increase a nation's security there¬
by decreases the security of some
even
so,
Total preparedness merely
other.
gives the hope of victory, it does
not
The other wars of the
19th cen¬
either way.
They were fought either between
nations like France and Prussia,
with conscription, or, as in the
tury are not evidence
War, between
sides that did not have conscrip¬
tion until involved in the war.
case
of
our
Civil
conform
150
fact, it sent many men right
the front lines, as replace¬
ments, after only 13 weeks, of
training. Later, this was changed
to 17 weeks.
In view of thjs pol¬
right, and take the
Such •• self-disci-
conscription helps
hin¬
or
attainment of peace and
ders the
security through world organiza¬
tion.
,
Here
;
,
again there is grave
rea¬
to
suspect the consequences of
conscription. We have seen that
son
conscription makes it unlikely that
the nation having it can either
for
prepare
war
effectively
or
fight it successfully; but there is
to
reason
that
fear
the
played
producing the corruption and
disunity so'fatal to France?
\
conscription
re¬
policy. Permanent
conscription is not associated with
victory; it seems to make for mil¬
itary inefficiency and to make less
effective
the
conscript nation's
preparations for war. At the same
time
it
encourages
reliance on
permanent
and
force
armed
discourages the
sort of world
organization that is
for the prevention ot
necessary
and the maintenance of peace.
war
military
routine, unless shaken out of its
rest by emergencies.
No nation
for
to
effectively
carry
out a policy of peace, con¬
war
or
tually
self-discipline on
honesty depends.
the
tary bureaucracy.
When there is additional insula¬
tion against
a
criticism provided by
system of permanent conscrip¬
tion,
would expect a nation
conscription
is long-
one
which
in
established to be at
a
serious dis¬
in
system of
a
conscription
preparation for modern war
will be definitely unfavorable to
greatest importance
military service.
service.
:
7
'
-■■■<
v.
Again the French experience
gives an instructive illustration.
efficiency v
military
efficiency
French
*
;
and humiliated the
frustrated
III.
Conscription and
Preparedness
,
the
efforts
make
to
in
Europe, while proving
itself
incapable of waging war
successfully.
peace
.
.
The detrimental effect of con¬
scription on military efficiency is
aggravated by modern technical
Conscription
as
permanent
a
policy should be seriously
ques¬
instantaneous action, as prepara¬
tion for attack, so long as nations
seek security in their own armed
technical
preparedness, or¬
ganization of the whole life of the
country for war, as well as more
directly military preparation.
That
power.
and
involves
industrial
Can
often
is
It
scription is
a
claimed
means
that
con¬
of strength¬
ening national unity. This claim
requires careful scrutiny.
'
Twice,
in
France
in
time
of
peace, the government dealt with
railroad strikes by simply mobil¬
izing the strikers. This was pos¬
under conscription; it con¬
verted a labor dispute into mutiny
military bureaucracy suc¬
cessfully direct such preparation
sible
against
a
tion
from
The
fall
The
Constructive
of
War
States
protected by conscrip¬
and
France
effort
Great
effectiveness,
also
of
criticism?
suggests not.
the
United
Britain, by its
suggests not.
Those two nations were not ham¬
pered by conscription.
whether
sense
state.
One doubts
this: strengthened
the
the
of
national
unity
of
the
workers of France.
Certainly
her
France, just before
fall, after 150 years of con¬
stron'gly in favor of a period
military training for every
am
of
;
.
and. convinced that
opposing such a
program are opposed to any sort
of
disciplining.
It is hard to
imagine anything that would de¬
velop opposition to war more than
a
year of service in the
ranks,
young
and
man,
of
most
I
who
those
convinced
am
had
that
history is too short to
be
Preparedness
is
not
simply
amassing armaments and supplies.
.
,■
\
thoset
Personal Experience
In the last
form
Oct.
on
'
.
I put on a
uni¬
21,1917, went aboard
war
transport
a
at the
one's, imagination
there
present time, pass
military training
after the war.
If
real
was
other
ten
of
would
men
prepared in) the
that was
.
a
reserve
relatively
commissioti; it
limited
in
scope,
and
apparently did not attract as
many
as
would have been ex¬
many
pected.
of
offi¬
for
any
arises
near
•.
*:• *■'
>.v?
Need Greater Now
.*
v»
training
has been increased by the greater
mechanization of war, and that a
•The
emergency
the
properly
granted
was
trained
that
be
f
o
thousands
cers
both
apparent when he went
college
in
1930;
Although
had many attractive fea¬
tures and required relatively little
from
the
student
to
whom
it
be
millions
arid
were!
>
ROTC
have
trained
so
to
but. we
shall
saw
ROTC
have V
sird#
f aro as they went, and
to itiith'M'fmy son took ad¬
good, in
I
we
event of the emergency
agree
done,
and
way
-
not very
us
should
the
progress
CMTC
>
to
or
years,
most
to
us
in this war. j
vantage of bath- of these facilities
i
war
within five
it
"compulsory" military service
the war began has enabled
when
sincerely hope that Congress
I
how well-fitted '
they were for the job. Few peo¬
ple realize that only the fact that
about one million men were" in
'
in
fu¬
;
need for adequate
•
is none too long a period to
properly train a man is shown by
the long periods for which men
are held in training at the present
year
ture. "
If this coun¬
Charles S. Tippetta
try is to take
the leadership in establishing an
time. y It may be that in some
organization
to preserve peace future development other nations
and to prevent another war, its
will not win for us the time to
policy with " regard to military
prepare, and should such;^.con¬
training
should
be 1 considered dition arise the need to raise a
carefully.
Other nations would
large force quickly would demon¬
become suspicious, would ques¬
strate the value of an adequately
tion our motives at once, and feel
trained
that
reserye
of enlisted, men,
we might be the next nation
as well as officers.
ivr.;'
planning to embark on a career
of conquest.
We knoW'that ; iwe
N. S. B. GRAS-.
have no such ambitions in riiind,
but they would feel we; must'be Graduate School of Business Adplanning something, Jl3'!U hoo-un
rministration', Harvard University
i"
fffoh.lrn'W;:;
hTIf compulsory military training
Endanger Peace Organization'
must come, I should most.' sin¬
It is, therefore, my opinion that
cerely hope that it might be kept
adoption of Post-War Compulsory out of our colleges. Intellectual
Military training would gravely effort now has enough competi¬
.
'
endanger the establishment of any
world
organization to
prevent
scription, was not a striking ex¬
ample of national unity. The dis¬
future
commonly blamed on
political corruption; but one won¬
ders whether permanent conscrip¬
vinced of the value of such train¬
unity,, is
:
this
wars.
Furthermore,
tion in
In
fraternities and sororieties.
practice, the military
would be largely
I
am
not
con¬
discipline
unforunate.
national training
world politics.
If we could be more rational and
That is easy; and it can make
conclusive, but it does raise ques¬
a little less emotional in our in¬
Beside being tion did not contribute its full the
tions.
problems of morale in the
Certainly it does not indi¬ defeat certain.
ternational attitudes we might not
Army camps between the adop¬
cate that conscription gives as¬ abundant, the armaments must'be share to the corruption.
(Continued on page 281)
In a country with conscription
tion of Selective Service and the
surance
of victory.
It suggests up to date. Mass production of
This
*
experience would
be the last ones to urge the coun¬
try into an unprovoked war.
S. TIPPETTS
Academy
danger of an-
..
to me ;
speak with
seems
experience in the first World War,
I
Master, The Mercersburg
compulsory
military leaders browbeat
peace-seeking
when war actually occurs.
German republic and tried to ap¬
The fact of France at least sug¬ pease Hitler when he threatened
gests that this expectation is well- force. This is the strongest mark
founded and that conscription as of approval a nation can give to
a
The French
permanent policy is a perma¬ reliance on force.
nent and serious threat to military system,
based
on
conscription,
in
advantage
CHARLES
Head
guarantee of effectiveness in pre¬
: • Wi
It
the
•
will not, at the
a
law making
orderly community.-
<
:"</
peculiar lack of knowledge of
subject.
Based on my own
a
policy of conscription for military
the policies and duties of main¬
taining peace. Mere ineffective¬
ness
in preparing to fight is no
paring to share peacefully in an
»
come' from
on Nov. 24, and was
front (in a non-combatant
capacity, it is true) on Jan. 14,
United States that these doubts be
1918, just 11 weeks after putting
raised now, before a radical de¬ on a uniform. As a matter
of'fact,
parture from traditional American many men in combat units, who
policy is made, and before our entered the service in the spring
country is plunged unexpectedly of 1918, were in active combat
into the evil consequences that action within six weeks of
report- 7
seem to result from a permanent
ing for induction. I leave to any¬
It is of the
ap¬
trial
'1
for the welfare and safety of the
plied to the economic and indus¬
prepared to admit that it is
seeking emergencies; so every na¬
tion's policy ISrat least ostensibly,
directed at preventing any inter¬
ruption of the repose of its mili¬
of them
none
that such persons must
weakening national unity and un¬
which political
v'
who have had experience in
men
scription is at least suspected of
dermining
v\-
\
»
impressed with the fact that vir-
control of all national life inherent
is
subject to it unable either to pre¬
pare
time?
In
reading the comments on
compulsory military training, I am
in
summary,
peace
Baltimore, Md.
of self-discipline, and so
opment
in
:
whole year
FABIAN F. LEVY
,
taining conscription as a perma¬
nent policy.
We must now ask whether per¬
manent
of conscription
years
of the afguis ftepes»
becomes
a
sary
Beside making the nation long
be realized by a nation main¬
can
icy, what
ment that
during
part in discouraging the devel¬
Infantry
prepare
into
the
formative
stage of his life. After he is fullgrown is late to begin develop¬
ing
the independent conscience
which is important for a healthy
national life.
May it not be that
a
ibe Army has stated
could
it
In
developed in men who follow
consciences, do what they
consequences.
*
Soldiers for combat in 13 weeks.
their
give the hope of security.
It has been shown that there is
when it is
temporary measure
for the emergency.
Finally,
that
Any benefits
be obtained in
can
other ways.
political honesty requires, not the
discipline imposed by the drillsergeant, but the self-discipline
believe to be
be gained
to
quires critical examination before
the United States adopts it as a
tioned, if for no other reason, be¬
Great
warfare.; -'
■ I
cause
it seems to frustrate the
States,
The Blitzkrieg makes possible, effective organization of the world
which adopted conscription as a
at least in theory, final victory in for peace.
wartime emergency measure, after
the first onset.
This means that
becoming involved in the war. In
V. Conscription and National;;
preparedness for defense must be
1940, France, with conscription
Morale : vy,,:* -v
150 years old, was defeated by just as total, and just as ready for
eventually
defeated
by
Britain and the United
a
In
Conscription and the
IV.
t
great doubt even that meager hope
Why?
scription, was eventually defeated
in the Napoleonic wars by Great
Britain without it. In the War of
1914-18, Germany, with conscrip¬
tion as a permanent policy, was
British always
that the
so
an
being
was
French industry,
thorities asked for.
to
Conscription for military serv¬
ice is usually regarded as a sort
that
with precisely the
supplies the French military au¬
every
Conscription and Victory
war
that
us
industry,
;
I.
little later than the Ger¬
Declaration of War.
permanent policy, every man
service be¬
fore he can earn a living. Now
as
has to do his military
slight advantage which turned out line is not encouraged by a sys¬
to be decisive.
'7 V/?: : :
;,/ tem which requires every man to
equipped
not
But M. Pierre Cot,
Minister of Aviation, has
French
and consequences.
nature
man,
had
fought in 1940.
questions that
have
was
1940
French
—
a
know that the French
now
army
asking
some
questions
it
started
from
ceased to exist.
while less
about
because the British
production, .of
airplanes
won
of, preparedness raises
as to the possibility
of achieving the sort of prepared¬
ideas.
■
It is a fair question whether
ness, needed for modern war, the
conscription was not an impor-. delicate balance between quantity
and
tant cause of the fall of France.
quality, unless the nation's
In March, 1940, the French army
directing forces are entirely free
was
regarded as the .finest in of the hampering traditions and
habits
inseparable
Europe; by July, 1940, it had bureaucratic
equipment, old methods and old
imposes on us
duty of
the
Peace," states
is
impossible to overesti¬
the military advantage to
mate
up-to-date weapon gives
the nation start¬
ing a. little later with more mod¬
ern designs. Some Britishers claim
that
the Battle of Britain was
mass
in his book,
Carr,
less
a
the advantage to
really
Efficiency. V;.
Prof.
;; ;
"The Conditions of
RICHARD R. WOOD
intend.
ripti<
Conscription and Military
result from univer¬
which would
cer¬
tainly not the purpose its propo¬
and the morale of our young men
sal military training.
is
ing when there is no immediate
threat of war.
We all remember
Compulsory
depends on future
•v*
THE COMMERCIAL & FINANCIAL
278
casional
The American Dollar and
(Continued from page 258)
content of the standard silver
ver
dollar
was
changed and the
never
pure gold content of
lar
was,,
changed
the gold dol¬
less than
a
total of 4 per
cent—covering two
inconsequential alterations made
to adjust
a defective bimetallic
of
our
dollar ivas never changed an
iota
The
ratio.
gold
content
during all the years of our goldcoin standard.
1879
1914
to
1914, the First World
War struck us.
At its outbreak
was
a
in
Then
there were fifty-nine countries on
the
the gold stand¬
stress of the war,
practically driven off the
ard was
period of
the brief
within
map
the
Under
standard.
gold
But, be it remem¬
bered, during these same years
the
silver
standard also broke
down in the few countries that
still retained it, and all countries
three
years.
stand¬
suffered serious inflation,_ In
resorting
ards
from
true gold
standard
American
The
International Gold Standard
After First World War
The
a
to
paper-money
inflation car¬
few countries this
prices only a few hundred
ried up
standard, operating in a world in
which most of the leading nations,
cent but in some other coun¬
tries it carried them to astronom¬
continually in¬
creasing number of the lesser
ones, were using successfully the
same standard, "the international
ical heights.
and
large and
a
gold standard." This was a highly
automatic standard, in which the
respective money units of the dif¬
ferent countries carried their full
gold
their
in
value
money
con¬
A $10 gold piece contained
tent.
this
standard, moreover, gold moved
freely in both national and inter¬
national trade, and gold bullion
worth
$10
under
gold
of
per
After the war there was every¬
where
back to
ard,
popular longing to get
"solid" monetary stand¬
a
a
in which the
something
to
people had confidence; and in the
distracted world of that time there
other commodity in which
was no
much confidence as
they had so
Then as now Charles Dick¬
ens'
phrase "as good as gold,"
meant the best, the world over.
gold.
Accordingly in every part of the
world
plans
discussed and
were
could be converted into coin at the
measures
mint under the free coinage privi¬
return
lege and gold coins could be read¬
standard.
ily melted down into gold bullion
that in those early post-war years
without appreciable expense. All
other kinds of money, government
there
notes, bank notes and token coins
kept at par with gold and
usually readily convertible
were
were
into
There was
in those days almost no monetary
gold
demand.
"monetary
word
unknown..
was
was
popular
a
"We have gold because
proverb:
we
authority"
There
cannot trust governments."
almost
gold
striking fact
a
public agita¬
no
other kind of mone¬
tary standard than gold.
The In¬
ternational Financial Conference
held at Brussels in 1920, at
which
important nations
later, the International
Conference
held
at
declared: "It is desirable
Two years
Economic
Genoa
currencies
European
all
that
gold stand¬
ard,
though far from perfect,
worked reasonably well. The few
countries still
pean
ard
international
were
on
the silver stand¬
trying
to
get
over
to
agree
port
vertible
United
standards
were
-
paper'- money
striving
to
.
Gold
.
.
the
is
countries could at present
to adopt."
gold, and the few that had lapsed
from the gold standard to incon¬
managed
only
standard which all Euro¬
standard.
common
gold-ex¬
With the removal of its
embargo in June
became
States
1919, the
the
first
get
country to
return to the gold
back to gold.
Everywhere it was .standard.
During the next ten
taken for granted that the inter¬
years most' other countries of the
national gold
standard would be
world
the world's monetary standard for
The
a
long future, and that the real
problem was not
substitute
but
for
one
the
of finding a
gold
standard
of improving that stand¬
one
ard by international
cooperation.
About the only criticism of the
international gold standard one
heard in those days was that gold
was not as stable in value as an
ideal standard should be.
however,
been
more
It had,
stable
than
any
other metal for many years,
and
had
than
any
been much
more
stable
of the many managed-
paper-money units with which a
number of countries had been
re¬
cently struggling.
back to gold.
gold-standard curren¬
cies however were required to
function
in
a
war-weakened
new
world, whose finances were in
bad
wisely she deflated to her pre-war
the
having
Furthermore,
standard introduced was
ferent from
vailed
that which had pre¬
before
the
war.
In most
in the
States at that time, a gold-
countries,
United
of gold
very dif¬
the type
not
although
gold-exchange standard
superseded
the ,' old
gold-coin
standard,, and there was no gold
coin in circulation.
The gold re¬
bullion
or
of
systems
the
new
gold-standard
were
gold
ing figures proving this stability,
added: "No wonder that we
came
to believe in the
money
riod.
stability of
contracts over a long pe¬
gold might not
The metal
was
true
This
over.
in
the
was
particularly
field of money.
Di¬
rectly and through central banks,
which
they
increasingly
con¬
trolled,
governments
there
their currencies
standard in the world
decade.
.William
Adams Brown, in the most inten¬
tional gold
practice."
that
during
of the twentieth cen¬
standard that has yet
been made, says:t "In the history
of the international gold standard
1928-29 is a landmark because it
was
the
only year
that standard was
during which
almost univer¬
sally in effect in countries not tra¬
ditionally attached to silver." But,
these were the years in which the
economic
world
began
crisis
in
Australia, Germany and Belgium.
It struck the United States in the
stock
iparket
October
of
crash
1929, and soon led to the break¬
of all the recently estab¬
down
systems of
Argentine,
Austria, and Uruguay breaking as
early as December, 1929.
gold-standard
lished
the
The
of
those
world,
United
States gave
up
its
gold-coin standard early in 1933
and adopted in January
1934 a
new, weak, hybrid type of incon¬
vertible,
gold-bullion
standard,
after a debasement of 41 per cent
in the century-old
the American
gold content of
It still re¬
dollar.
no
on
a
longer depended
the
1939
out in
broke
war
dollar loans made to them by
on
the United States.
.
I The par value of each member
state's currency is to be expressed
in gold, and
official computations
relating to the currencies of mem¬
bers are to be on the basis of par
Limits
values.
prescribed be¬
are
yond which the price of gold and
exchange rates are not normally
permitted to go.
Before considering
Plan
Woods
the Bretton
of
provi¬
the
,
sions
regards the values of the dif¬
national
currencies,
it
as
ferent
should be noted that nearly every
general provision is modified and
whittled away by so many excep¬
that
tions
looses
it
much
force and most of its clarity
maze
of
talk
these
in
a
a
after-dinner
short
and
cite
to
in
It would
qualifications.
futile
be
its
of
explain
to
try
of
much
difference
of
opinion
in
high
places in the United States and
abroad as to the meaning of the
Plan, a good illustration being
the question to be considered lat¬
er, as to whether or not the Plan
is a gold-standard plan.
Why for
example Lord Keynes can say that
it is "the exact opposite" of the
the
This is
exceptions.
reasons
why there is
one
so
gold standard, and Sir John An¬
the
declare, "I believe
derson, British Chancellor of
important country has re¬
turned to gold, no other is today
the view that this scheme in any
other
standard.
the gold
on
The
world,
,
.,
''.
has had
therefore,
little experience with a true
international gold standard since
very
such a
gold standard at such a time is not
The
history.
failure
of
fair test of the merits Of a true
a
international
standard,
gold
a
way involves a return to the gold
standard," while the eminent Brit¬
ish economist, Paul Enzig, can say
the Plan "is .a most-vicious form
golcl standard, far worse than
the one this country .[England]
of
fortunate enough to abandon
1931,"
D.
*
White,
Stabilization
Plan
yy.xi,.
What would the adoption of
that
plan do to the American dollar,
payable all
the dollar in which is
of
our
bonds,
public and corpo¬
rate, all mortgages, all life insur¬
ance, all pensions, all. bank de¬
posits and all wages?
The
Bretton
vides for
a
•.
Woods
*
t'
',
collection of national
own
monetary unit, as in the past,
criticising
while
the
possibility of maintaining
to the
United
gold
States,
the
of course, do
adhere
to
standard can,
without in any way
to
comolicat-
ing the operations of the Fund."
With reference to this statement
may
I say
By
way
of digression
that it would be a strange sort of
international monetary
tion if
tain
a
a"
the
all
highly
stabiliza¬
few countries should re¬
rigid gold'standard while
other countries were on
f 1 exi b 1 e
standards.
paper-money
: ■"
;
X:•/
At the proper time the Fund
to
is
request, each member, to comvalue it de-
mumcate to it the par
sires^or its currency, based on the
rate
of exchange
designated
come
within
the
a
prevailing at a
date.. This is to be¬
real par value unless
specified time the mem¬
ber desires
tVoI, II, p. 773.
Harry
prising statement: "Those coun¬
tries which elect," as does the
Pla'n pro¬
managed-paper-money standards,
While each country would have its
Amer¬
gold standard, can make the su-r
so
The Bretton Woods
our
standard in no uncertain
terms, and expressing great doubt
a
Plan.
while
gold
as
operation
and
ican co-author of the Plan,
in
many
countries.
It is because,
however, of such an alleged fail¬
ure, that we have before us today
the Bretton Woods Stabilization
successful
of
can
there is in fact no foundation for
standard with a previous long rec¬
ord
to
Fund
the
cur¬
adopted,
administratively flexible,
a
not expected to be permanent.
fact
value
change, or unless the
Fund notifies the member that
in
frequent changes
to
seem
of
par
be..contemplated
as
important instrument of mone¬
tary policy. Such changes are di¬
vided
into
two
Changes in the
classes:
(1)1
value
par
the ;
of
monetary unit of individual mem- :
bers and (2) Uniform changes by;
all
members.
Let«
these separately,
T A
member
change the
with
consider;
isi
permitted
to *
value of its cur-'
"after
consultation1
par
only
rency
us
i
the Fund" and in
order
"to*
correct
a
fundamental disequil-?
ibrium." It is provided,
however, !
that, if the proposed change, to- 1
gether with all previous
changes,!
does not exceed ten
per cent of;
the initial par value, "the Fund
shall
raise
objection."
no
beyond ten
goes
If
it'
cent, but not
per
in excess of 20 per
cent, the Fund
either
may
concur
object, but
or
must declare its attitude within 72
hours,
if
and
concur
it
the
cent,
per
beyond
goes
Fimd
to
make
20
either
may
objectvbut is
or
time
more
Exchequer
standard.
trol chiefly upon the modest man¬
ipulation of discount rates and oc¬
are
Since the
world crisis of the early 30's no
this
tains
by mutual agreement, and be sub¬
ject to controls administered by
an international Board of Gover-
for their monetary and credit con¬
able in
much interna¬
not very
was
large scale.
standard, but it could not be tam¬
reli¬
gold standard throughout
Obviously, therefore,
these units would be tied together
Central banks
pered with and had proved
when
country
important
managed
all the theoretical advan¬
tages of an artificially regulated
possess
a
20's.
the
only
in
;
.
he
the
the war.
by a new and highly managed na¬
the tionalistic type. Government man¬
long agement of economic affairs which
period was the relative stability of had reached new heights during
the price level."
Then, after cit¬ the war persisted after the war
standard ending in 1914, ". .
remarkable feature of this
Italy and Poland re¬
1927, France in 1928 and
Sweden in 1930. The United States
was
represented at Bretton
small states in terms of
states
population and business. Twentyone
of the 44 were
in default
gold parity.
turned in
states.
very
a
Woods
was
frequently inade¬
quate.
And, most significant of
all, the time-tested old type of in¬
world's most vigorous critic of the ternational gold-coin s t a n d a r d,
gold- standard, said, in 1923 refer-< with its fundamentally automatic
ring
to
England's eighty-eight system of operation, was replaced
years' experience with
the
until
turn
$500,000
as
smaller
the
minor part of each
quota is required to be paid in
gold.
The Fund is essentially a
loan fund.
The great majority of
her legislation for this re¬
July 1928. 1 Very un¬
plete
low
run as
of
some
Only
war.
whose economic sys¬ 1914, and that little experience has
grossly distorted by been in a very unstable period,
between the two greatest wars of
''V/v /v^y'v' :.f /••
and
for
tems had been
serves
Concerning the stability of gold
in those pre-war days, John Maynard Keynes, who is today the
came
shape
one
From these high fig¬
quotas
ures
England returned to gold in the
should be based upon a common
This
than the
before the
of the Fund are
States $2,-
United
of The
200,000,000.
of
the
an
750,000.000. the -United Kingdom
$1,300,000,000
and
Russia
$1,-
gold
prevailing
kind
different
standard
In
about 60 per cent
gold standard, but it was
a
very
gold
was
The,largest three
quotas which combined constitute
during the latter
prejudicial
though
called its quota.
20's, most of the world struggled
back to
,A
caus¬
on
i, The par values of member
rencies
when
once
are
those
then,
fixed at $8.8 billion.
was
Fund
members." If any country
persists in refusing tor accept for
its monetary unit the*
gold value
which the Fund wishes to.
pre- :
scribe for it, its'Only alternative is
to get out.
/T
X
member's required contribution is
political
study
was
the
a
incompetent,
many
sive
It
fund
of
much
.
.
It
question
tury
tion for any
all
Conference the initial stabilization
without
to the
and to
few exceptions, all
a
scale
a
to.be made by a ma¬
are
value which
has requested Xcan-
part of that member, or others ion
44 members of the Bretton Woods
managers.
a
With
decisions
they /...were
before
so
Slowly
250
especially favorable to the smaller
management or no management as
one of too much management and
too
given
arrangement which is
an
states.
inter¬
chance to correct evils.
a
not
was
Owned,
is
state
jority of the Votes cast., For the
side-tracked
given
recourse
plus one additional vote for
$100,000
share
of
stock
each
economic,
Normal
ing
director.
member
votes
Natural
often
too
executive. direc-J
be maintained
managing
a
par
member
not
by ignorant meddlers.
forces
were
fered with
international
the
of the
world — thirty-nine in number
management by governments, and were represented, resolved unani¬
very little by central banks, ex¬
mously: "It is highly desirable
cept
that
of
occasional
small that the countries which have
changes in central bank discount lapsed from
an
effective gold
rates.
Our present much-used standard should return thereto..."
on
all
were
and
its.judgment the
the
committee
a
Each
of economic
and balances
forces
tors
more
or
mem¬
of
state;; with;
twelve
was por
harmful.
and
litical
checks
taken looking toward a
to
ber
Summer of 1925 but did not com¬
V
; (vr
Much
entific and useful;
Governor for each
nors, one
market, but resorted extenr
sively to large open market oper¬
ations, the exercise of foreign ex¬
change controls, and the manipu-^
lation
of
reserve
requirements.
Some of this management was sci¬
open
The Breiton Woods flan
weight of silver, while under the
gold standard from 1879 to the
First World War, it was a fixed
weight of gold.;
During all the
years of bimetallism the pure sil¬
the
operations in
minor
Thursday, January 18, 1945
CHRONICLE
allowed
its
decision.
The liberality of these provisions
is insured by the
requirement that
the
Fund
must
agree
to
a
pro¬
posed change without any stated
limits if it is "satisfied that the
change is necessary to correct a
fundamental disequilibrium," and
the Fund .cannot object to
a
pro¬
posed change on the ground that
it disapproves of "the
domestic,
social
or political
policies" for the
carying out of which the member
is
proposing the change.
The penalty for making an un¬
authorized change in the par value
of one's currency is to render the
guilty member
the
ineligible to use
of the Fund "unless
resources
the
Fund
otherwise
determines,"
and, if the member persists in its
noncompliance
able
for
an
unreason¬
period, it is required to with¬
draw
from
Fund;
:
,
-''
membership
v •
in
the
,:.'*<
,'
«
.
■
These previsions on their face
would seem to open the door very
wide to a member state wishing
/
to debase its monetary unit.
The
readily permitted are
The condition "necessary
variations
large.
to correct
librium"
all
of
a
fundamental disequi¬
mean
all things to
can
Can
men.
situation
a
any
in
conceive
one
which
desiring- to change the
nation
a
par
value
of its monetary unit would not be
doing
so, or at least claiming to be
doing so, largely by reason of its
"domestic, social or political poli¬
cies"?
Could the Fund's authori¬
ties in- making
their own decisions
being influenced by
judgment concerning
the
help
from
their
wisdom
cies?
of
those
Nations
domestic
do
poli¬
ordinarily
policy of in¬
not
deliberately plan a
and
subsequent
ment.;
They slide into
flation
debasement
down
debase¬
currency
political to¬
boggan, and they usually receive
their initial push, as well as other
pushes on the way down, by un¬
sound domestic, social and polit¬
a
ical policies, involving the exploitation
of
their
.
currency
for fiscal purposes.
•
.
-
system
/ V
,
In
addition.to the provisions'
permitting changes in the par val¬
ues
of the
vidual
sion
monetary unit of indimembers, there is a provi¬
to
enable'
make uniform
the.
same
all
members
changes at
time.
•
to
one
and
Specifically
the
-
that the Fund by a
majority of The total voting power,
ma/ make uniform proportionate <
provision is
changes in the par value of the
0
Volume
161
.
currencies; of
Number 4352
all
members,
by every member which
has 10 per cent or more of the to-:
tal quota, and provided, further,
that the par value of a member's
currency shall not be changed if
the
member objects within 72
hours of the Fund's action.
I
standard,
proved
of
meaning
and
sence
great international problems than
what is not the es-*
what is and
pro¬
vided that each such change is ap¬
should
the
the
that
say
there
a
barbarous relic?'"
standards and monetary nation¬
since
.Yes, the Bretton Woods Plan is,
public opinion is usually strongly,
resistant to deflation, this provi¬ as Keynes says, the exact oppo¬
It is a
sion, realistically speaking, is one site of the gold standard.
of
managed - paperto make possible by political ac¬ collection
tion world-wide inflation.
And, money standards which, in prac¬
tice, would be largely controlled
more, than that, it will make such
by a politically dominated inter¬
world-wide inflation dangerously
majority of the total voting power,
if ther is an affirmative vote of
namly, the United States,
the United Kingdom and Russia.
ever,
funds available for bor¬
rowing, and would find itself un¬
der heavy international pressure;
should
that we as a creditor
world-wide monetary
not want a
time when most
of the debtor nations should, in¬
debasement at
a
and
cluding the United Kingdom
how
Russia,
cessfully
could we suc¬
it? v Moreover,
long
oppose
likely, before any
subject should be
would it not be
vote
this
on
called for, that a large number
individual nations would have
of
in¬
reduced the pars of
their respective currencies, and by
doing so would have placed those
dividually
done
not
had
which
in
so
a
position
the payment of inter¬
strongly disadvantageous
regards
as
competition for
national debts and
Internationally the
currencies would drive out
export trade?
poorer
the better ones in a manner
gous
be
a
anala-
to Gresham's law.
It would
case of the survival
of the
of giving the
world international monetary sta¬
bilization which is the declared
Instead
unfittest.
it would give
object of the Plan
it
precisely the opposite.
Do
in America want to make
we
if
Even
alter?
we,
political and economic, con¬
both
do,
we
are
dollar.
•
In
my; '.judgment the
Bretton
Woods Stabilization Plan, for this
if for
reason
others1—should be rejected by
the
American
If the gold
standard seems too rigid—as some
a
maintain—would not
world
plan of this kind give the
nationalistic monetary fluidity of
proportions?
flood
The Administration of late has
been
Bretton
Woods Plan is an integral part of
a
comprehensive,
unified, onepiece program for international
reconstruction—a program plan¬
ned
by the
United States and
other peace-loving nations to im¬
prove economic conditions gener¬
ally throughout the world. It cov¬
a
submitted
Bretton
the
to
Conference
was
first
at
interpreted
in
the
a gold-stand¬
ard plan.
The values of the respective monetary units were ex¬
pressed in gold, so likewise were
the quotas whose gold values were
supposed to be maintained and a
minor part of which were payable
in gold.
On the other hand, the
respective monetary units were
frequently
States to be
United
t
variable administratively, and
fre¬
their definitive
apparently con¬
important instru¬
concept is clearly
Such
a
contradictory to
principles and practices of the
historic
gold
standard,
under
which a change in the gold con¬
tent of the unit of value is looked
the
upon
as a
standard.
there
the
was
gold
breakdown of the gold
Be it remembered that
not a single change in
content
of
the
should
pound
sterling throughout nearly a cen¬
last
gave
before
Foreign
Affairs
I
be
tionally and
time
have
the
ple and be
long,
in
1879 to its demise 56
"...
John
Maynard
Keynes,
whose
prevailed in the de¬
velopment and final formulation
of the Bretton Woods Stabilization
ideas largely
Plan; said in a sneech in the House
of Lords, May 23, 1944: "If I have
any
authority
to
pronounce
on
shall
peo¬
out of the
the
.
.
This tax
we
We must al¬
ways keep in mind that other na¬
tions are anxiously asking wheth¬
er the United States has the desire
Woods
proposals.
.
.
.
cooperate effectively
and ability to
If we
ratify the Bretton Woods
to
wisdom
be
the
k II
achieve
be little
Plan
appear
In
the
except
III
and comity among nations.
peace
is
precisely
because
the
Plan would
W^od1?
with these
w/6rthy
Plan would
Bretton
be in conflict
objects,
as
that
actually work out in
^^cretarv
had
no
Mor^enthau
Bretton
The
Woods
of
quarter
said: :
-v
in
succeed
to
other method
because
there
is
of dealing with
international monetary and finan¬
cial
problems than through inter¬
national cooperation."
there
is
method
no
for
other
dealing
Of
course,
from
up
the
from
down
Conference
century ago, well
a
j
the
as
there is a deficiency
annual
the
of
budget
State which is met by the crea¬
tion of fiduciary money or bank
credits,
no
'Q possible.
.
.
is
reform
currency
The balancing of
.
adverse
an
of
external
reducing
internal
balance
by
payment,
consumption.
nized
far to remedy
But it is
in
that
the
case
recog¬
of
some
countries the adverse balance is
such
to
as
of
ment
the
render
attain¬
equilibrium
in
the
budget difficult without the
sistance
addition
in
of
an
as¬
the past,
but high tariff barriers are ob¬
stacles to international trade and
it has many times in
to
the
each
*but without any
them
VII
countries,
compulsion from
a
nation's
public
interest
highly prized
cable
to
as
that
a
it
mone¬
such
and
is
a
so
prerogative of
is
impracti¬
subject it to outside in¬
terference.
If
compulsory inter¬
ference from outside is undertaken
it is not likely to be effective.
-
V
While
there
should
be
monetary
The
stand¬
on
Monday's sell-off.
bought Smelters at 39!/£.
Monday the stop of 42 was
broken by
a
quarter of a
point, stock closed that day at
4214. Your profit was about
2 points.
It isn't much to
brag about but it's better than
a loss.
Stops in G. L. Martin
and Timken Detroit Axle
main
central bank.
VIII
gold
international
An
standard will call for an interna¬
all
of
banks
tral
the
with which
bank
tional
cen¬
gold-standard
countries should be affiliated and
to
which
they
the necessary
bought at 2114, carries a stop
Latter bought at 33^2,
should be stopped at 3314..
of 22.
iilxt
More
tral
otherwise enter the field of
some
with
this
international
and
management should
those
are
of
this
any
the
presented
as
those of the author only.]
LAMBOKX & CO.
99
WALL
nor
fiscal
SUGAR
Govern¬
States
STREET
NEW YORK 5, N. Y.
should promptly declare its
intention to rehabilitate its own
ment
Exports-—Imports—Futures
gold; standard after the war; and
should, in due time, call an in¬
ternational monetary conference
of all other countries desiring to
return
to
object
of
gold basis,
a
formulating
.
DIgby 4-2727
with the
plans for
the restoration of the international
standard and for interna¬
cooperation to. make that
I
Established
better standard.
a
want
close
to
with
a
ican
people
this
address
Hi Hentz & Co.
for a
democracy. How would the Amer¬
fairly
tion:
question
What
pertinent
Members
kind
would
you
theys were
with the ques¬
of
an
New
American
Chicago
gold-standard dollar or
of
the
Bretton
N.
Woods
Y.
national,
be kept
under
Exchange
Curb
Exchange
Exchange
Exchange,
Board
Cotton
of
Inc.
Trade
Exchange
other Exchanges
Cotton Exchange
NEW
dol¬
type,
the control of a
governmentally appointed inter¬
national board of managers?
largely
Orleans
And
a man¬
aged-paper-money-standard
lar
New
Stock
Cotton
and for
the carrying on of your business,
a
York
Commodity
prefer, for the
bank deposits,
,
York
New
payment of your wages, your de¬
fense bonds, your life insurance
your
York
New
vote ' if
presented
dollar
and
1856
,
standard
CHICAGO
management of the gold standard,
both
with
They
v
United
The
Chronicle.
in
expressed
necessarily at
The
operations.
IX
views
do not
coincide
time
long-time
banks
member
its
to
Thureday.
—Walter Whyte
ex¬
banks.
should not make
loans
[The
article
It should be a cen¬
of central
bank
be
monetary and bank¬
a
ing character.
bank
/'
contribute
The func¬
bank should
of this
tions
should
capital.
re¬
unchanged. The former,
principal monetary ^au¬
thority in each country should be
a
country after
unit is affected with
great,
be
The determina¬
whatever.
any
list,
You
ard.
tional
in
of
.•••-.•
the
stop
orderly func¬
and
smooth
tioning
.gold
IV The monetary unit should
established
high tariff barriers,
over
■
v
.
in
ex-
'; ternal loan.
"a conference with other
and
goods
of
gold standard can
The
as
'
the budget will go
in the interna¬
movement
clusively of
-
So long
satisfactory
these
built
Economic
ternational
a
otherwise
The Report of the Genoa In¬
sovereignty
that
Conference
long
high de¬
a
*
<3
•
stocks
the
American Smelters broke its
.
should be
of freedom
tional
*
The financial
be
must
bottom,' not
top.
many
so
the
that
believe
us
of
his¬
the
and
budget
structure
are
and
whole
a
process
from
fiscal policies.
sane
pro¬
trade,
as
a
No sound currency can
balanced
international
of
freedom
duction,
hope of progress at
for the monetary
result of
a
can
f;
There
function
ihe world
as
VI
*
*
possible and should be
as
scientific
anywhere unless it rests
firmly upon the foundations of a
of these
efficient
system,
monetary
small
services.
exist;
do the protagon¬
stable
and
,
as
whole should
and
evolution ' starting
Woods, namely, a
of Bretton
ists
of
as
technique than
a
toric gold standard."
fundamentally
desire
?
end
same
sound
It
nearly all
fact,
onponents
no
date
of
system
'
which most of them
or
early
an
as
system.1 But there
monetary
the Bretton Woods
to be selfish isola¬
onponents of
important object in
sound
a
emi¬
that if holders
day, they should
j
...
.
It is hard
ing and selling.
gree
cently visioned temple of interna¬
the
taxes cannot
haps,
that the world
about
stops do their watching
Of
question of
figure into buy¬
operation.;;
the field of human
go
-
for them.
market
stock
a
including
John Maynard
Keynes.
It said: "There is, per¬
no more
and
So the advice contin¬
effect
in
have
second
14
-
minute of the
the
ciers
particular plan of world mon¬
etary and credit reform we will,
we
are
told, pull down on the
heads of all of us the whole rer
This attitude on the part of
To
line.
technician
nent British economists and finan¬
con¬
Administration tends to make the
do not under¬
Committee of
up
Up to this writing none
can't watch the market every
superimposed upo na system that
is fundamentally automatic in its
this
comity.
people
,
My
MacMillan
the United States fail to approve
tional peace and
"The
and
point was well
stated in the 1931 Report of the
not' know how to
cooperation."
If we in
achieve
simplest,"
-
a
showed
which
of the stocks gave any
again I have been asked what
to buy and sell.
Frequently
this question is accompanied
by the caution ". ... . remem¬
ber my taxes." At this I draw
the
companion
stand."
that they do
or
old
distrust what they
desire to cooperate
not
the
in
There is much
proverbs: "The greatest truths are
American people
that the
either do
will
they
even very
pretend to understand
much disagreement.
.
significance of the
adoot on the Bretton
The
day.
a
selling brings me
subject. Time and
to another
it, and among those few thare is
the
to
them.
ues
That Plan is
few
running.
complicated that
economists
get
some
received
you
stocks
of
list
^
>'s
>!«
levels.
This
experience.
the
in
addi¬
tional evidence of up-mobilassumption is that some of the
ity. On the other hand, neither
buyers of six months ago are
did they go below their stop
the sellers of today.
development out of
a
common
tary
later..
it
the
of
primarily
Last week
To this end it should be sim¬
ple.
a
that
is
confidence
column is in¬
But this
trader.
held for
are
and
six months
standard that
wisely
ard,
standard
any
them
prob¬
something
is
taxes
terested
unless the stocks which
furnished
adopted interna¬
maintained for any
can
The fate of
Treaty of Versailles,V he said,
demands.
peace
gold-coin stand¬ the kind of a world we shall be
and not one in that of our living in, that we oppose the Plan.
American gold dollar, from
There is an erroneous implica¬
beginning of the < gold-com tion in the recent statement of
years
of
of
else.
be a tax reflection. For
profits cannot be grabbed in
toto
of
For the investor the
lem
may
on
are:
The first requirement
post-war monetary
tion of the size of
the
selling, which is compara¬
tively unimportant, there is
also selling from the so-called
"inside" groups.
This, too,
testi¬
the House
They
on
lic
very
Committee
of
Representatives.
But
before, the sale.
not
to
they had better
for after, and
accounted
be
get funds
the annual
top of this pub¬
liquidation
bite.
Standard
April, in
the
tury of Britain's
own
dragging in tax prob¬
with which to pay
done?
be
Gold
recommendations,
I
mony
world
cooperation that
economic
not.
monetary pol'cy.
My
ones
international
of
pattern
gold pars
templated
ment ol
of
an
briefly summarized, would be the
his¬
the Bretton Woods Plan "the
tionists,
were
called
retary Morganthau recently
quent changes in
as an
To this effect, Sec¬
etc.
zations,
car¬
organi¬
tels, food and agricultural
vinced
The stabilization plan of the ex¬
Woods
proposals,
reduction,
tariff
lend-lease,
the
Oaks
Dumbarton
ers
Agreements,
Gold-Standard Plan?
perts
that
saying
fail
Is the Bretton Woods Plan
of
advocates
gold standard.
International
so
in establishing world peace.
/
,
International
and
Cooperation for World Peace
n^urse
of its critics
the
requirement alone should put the
Congress.
Woods
Bretton
it
debtors?
internation¬
monetary
are
only
and the
Bretton Woods Stabilization Plan
"adds
alter
largely in foreign hands, the
others—and there
no
are
willing to place the power to
hands of our
international
gold,
considerable
to debase the American
tinually
torical
the value of our dollar so easy to
so
decisions
without
cording to brokers who do a
large. business with the pub¬
lic, there is a large amount
to¬
Plan Recommended
be in the
the gold
the
only
prospect
truly
What then
An
provide the greater part of
would
United States
will be for a long time to come, a
creditor nation.Suppose, how¬
these
a
international
debasement
and of extensive borrowing from
the: Fund.
The* United
States
much,
Of
alists
only
is
realistic
direction of monetary
that
have
members
to
their interests
lieve
member which has 10 per
more of the total quotas.
three
for
day
standard
nations
debtor
by
The
who, most of the time, would be¬
or
Only
controlled
be
alism.
This board would
national board.
The action requires only a
every
market
gauge
make
and
it." monetary and financial coopera¬
lems at the same time. I am
his tion than the Bretton Woods Plan.
(Continued from page 262)
convinced that just as stocks
long-time opposition to the gold
Realistically
speaking,
and
you know; or have you for- are a
standard, Keynes said: "Was it not
for
the
reasons
buy under certain con¬
previously
I, when many of today's icono¬
gotten. yy^y
stated, the trend of the Bretton
1 "
ditions, so are they a sale un¬
clasts wer$* still worshippers of
Woods system would, in fact, be
y
;
*
* y-*
der others.- If taxes have to
the Calf, who wrote that 'Gold is
toward multiple
paper-money
This week is tax week. Ac¬
nearly all the members
be considered
Since
cent
other methods of
many
to
trends
Walter Whyte
Savs—- ■
plan is the exact opposite of
And then, after referring to
will be debtor nations, and
easy. »
are
enough
Tomorrow's Markets
by international cooperation, but
gold
279
CHRONICLE
THE COMMERCIAL & FINANCIAL
.
07.
-
"V
Bldg.
YORK 4,
N. Y.
DETROIT
PITTSBURGH
GENEVA,
SWITZERLAND
v.
& FINANCIAL CHRONICLE
THE COMMERCIAL
280
Aldrich of the Chase National, are
in favor of the same thing.
r'
high taxes—all under the guise of
fighting inflation.
This sort of thing can go on
only as long as the war lasts.
It
Inflation and Post-War
Reconversion Problems
relies
to
considerable
a
patriotism,
upon
other
and
(Continued from first page)
have
inflated
be
to
~
the
upon
reserve
of
number
themselves—the
tires
;•
much depends
strength of the
although
occur,
The
that
plies, the tread, and the side walls.
One of .the troubles with the
American business, car today,; is
running
is
tires..
financial
inflated
excessively
on
At the
_
that we are r inflating
credit currency far
beyond
time
very
the
weak¬
the usual pressure, we are
the talk distracts
ening the tires of bank credit, by
reducing the reserves of strength
to resist financial blow-outs.
figure of speech, I hope,
will help you to grasp what I
mean when I say that one of the
clearest indications of the exist¬
This
If
indicates
now
either
unusually
an
And
most signifi¬
of this, is the current
the
ing
low
tacitly
admitted
the
pand.
In this
of the
reserve
inflation
easily
and the • volume of ex¬
changes to be held down to any
the condition
way,
will
ratio
be
■:/■•■.
preceding level, say that of 1942.
Bank deposits have been contin¬
uously expanding and are simply
enormous.
Of course they are at
record-breaking levels. These de¬
posits belong largely to individ¬
uals and corporations.
What is to
become of them?
If they are ever
used and turn over at any normal
con¬
J/JJ/'v:-
change the simile, it is much
as if we were to say that we want
a tank to remain 50 per cent full
of
water, but since we have not
enough water to keep it that full,
the
reduce
Thus when
tank.
size
our
the
of
water sup¬
rate, a great rise in prices will be
ply is reduced 50 per cent we will
decrease
the
size
of
tank
the
an
we
a
One
of
which
the
existence
is
denied
by
in authority.
Such things
doubly dangerous when they
those
are
are
not
the
recognized.
Federal
For example,
Reserve
recently issued
a
authorities
warning that
boom in farm lands threatens
a
us.
It points out that land values have
steeply during the present
war, just as in World War I.
in
this
the
case,
Reserve
Board argues that the rise in the
price is not inflationary, because
farm-mortgage loans have not
risen
period.
did
in
the
earlier
In other words, the Board
that it is not the
argues
the
they
as
price,
but
the
rise
rise
in
in
all
other
cases
that11
know
of, however, the government
au¬
thorities insist that inflation con¬
sists in high prices, and go on to
argue
that since the price indexes
do not show
in the earlier
not have
as
much of
war we
much
a
rise as
therefore do
inflatilon.
it is convenient to
make
When
the test
of inflation consist in high prices,
When it is not con¬
venient, they make it
depend
upon bank credit.
they do
5
In
so.
by nearly 5 bil¬
the
record-break¬
there
1929
were
in
billion dollars
less
circula¬
tion.
The
significance of all this in¬
in so-called liquid assets
or savings is that the time is go¬
ing to come when the people, and
notably the laborers, will insist on
having the use of their funds.
What has been going on is a sort
of shell game in which now the
individual sees
his money, and
now
spends vast
sums which go out, let us say, in
the form of payrolls.
Then it pro¬
government
ceeds
to
these
take
vast
sums
back,
either through taxes or
through war-loan drives. Then it
spends again, and takes the money
back again, so that most of us
really do. not get much for our in¬
creased money incomes except a
lot of government.
;
Significance of OPA Token
Cancellation
In
,J.F/\/:,:
this
connection, I am re¬
minded to the recent performance
of * the OPA in' cancelling the red
trid blue food tokens.
The
reason
given by Mr: Bowles is that too
many of these tokens were issued.
There
low
was
not
enough food to al¬
the holders
of the
tokens to
cash them in.
Isn't that exactly the same sit¬
uation that we find in our cur¬
rency?
More green dollars have
been issued than there
to buy with them.
are
So, in
things
lars,
a sepse,
sterilizes them—call it
It is my point that there is no what you will.
It rations us; it
use in "fighting" inflation.
What' forces us to save; and it exacts
Bowles
of
form
dollars
blue,
green—are cancelled."
red
—
or
reflected
yet
will
full
the
They
do so when the
worth whatever
necessarily
dollar is
quantity of gold
stitute the gold
paper
Wash¬
at
not
amount of that devaluation.
cause
ington, tell him, "We made a mis¬
take in issuing all these dollars.
Now, your liquid savings in the
will finally con¬
dollar.
should
I
non-monetary
in the
long run is
tive employment.
mention
why I
one
Nor
ourselves
fool
we
can
the reconversion.
by
shortages which now face
us are much more significant than
the surpluses.- Our great problem
in the reconversion' period
will
not be to dispose of the surpluses
of war goods.
;
ing production; while at the same
time
prices
duction
in
duction
are
in
increased
free
a
Pro¬
held down.
country—pro¬
America—cannot
sufficiently
be
If
to
are
we
have
which
things
There
will
even
that
of
be
great
shortages of many things such as
staple cotton goods.
Of course,
there will be a period such as al¬
ways follows great wars, in which
surpluses of some commodities
(say copper) will exist, and will
cause a brief spell of irregularity
and uncertainty.
But the main
thing is that for five or six years
we have been tightening our belts.
rapid re¬
the
a
will
and
sort.
un¬
buildings,
automobiles,
enterprise.
conversion
for
demand
satisfied
plied only when markets are free,
and prices are allowed to rise so
as to furnish the stimulus to pri¬
vate
to fill the great
will be
It
prevent
to
This is the fact
that the
listening to those who argue that
inflation can be offset by increas¬
bring
production of buildings, automo¬
biles, electrical refrigerators, silk
stockings, and other things which
the American people have been
Millions
doing without, there must be a
profit motive.
But there will be
no
profit motive unless there is
a more favorable attitude of gov¬
ernment toward business and to¬
millions of
upon
mar¬
riages have occurred, and perhaps
have
will
babies
billions of
been
These must be provided for
born.
in the American way,
and the only
to do that is to give private
ward
way
less
enterprise the go-ahead.
the profit system, and un¬
profits are allowed to rise.
At best, it will take years to
catch
up
with the shortages of
buildings and automobiles.
short, gentlemen, the only
big problem of reconversion that
I
can
Depreciation
but'
been
13.7
To
The only
The
cated
and Nelson
(This
foolish.
that
we
are
of the
have
we
seen
too much
experiment to try
Russian
like it.
one
In this connection,
I would em¬
phasize the fact that the war re¬
recently suffered by the socalled Allies have been helpful in
verses
overval¬
went
Resentment of the
ahead.
tanks
also
leaders
of
munists
opinion,
and
shows that shrewd foreign traders
would now — contrary to their
this
will
attitude
of the country is strong con¬
toward
world
preference — rather have
gold than paper dollars.
And the
grow.
Russia
and the
ideals
our
Com¬
for
a
will not lie easy in
peace
Blunders That Can't Be "Laughed
,
Off"
VI may add that!
y
in
not going to allow Mr. Bowles to
laugh off the little mistake which
was made in the balancing of food
server, there is now developing in
this country a strong, trend toward
a
return to
think
we
the gold standard,
can
I
against supplies.
We are
going to forget that in his re¬
cent utterance about the "large
tokens
count upon such a
not
as being inevitable before
period of post-war reconver¬
return
the
sion is
over.
think the OPA
increasing extent is "getting
bad" with the people.
We are
to an
point,! should state that,
judgment as a trained ob¬
profits"
I know of no more
made
producers
by
textiles and clothing he
significant event in this connec¬
of
is virtu¬
often-denied
ment of the NationaFAssociation policy of fixing prices for the pur¬
pose of fixing profits.
of Manufacturers.
\
The plain fact is that this war
This organization has hitherto
tion
than
the
recent
ally returning) to his
pronounce¬
public po¬
sition on the gold- standard, be¬
cause of some diyision among its
members.
At last, it has been
driven by the force of circum¬
stances to come out unqualifiedly
for the gold standard.
You will
also
find
bankers,
that
all
and
notably
of
our
leading
Winthrop
the
10 million
administration has a bear by
refrained from taking a
lowed
Knudsen
German
ped
<
out!
Now
the
counter-offensive, equip¬
with
ments
superior
some
of
imple¬
forcing the
is
war,
and
politicians
hats
brass
!n
Washington again to recognize the
importance of business.
So I think that our main
prob¬
lem is to restore efficient democ¬
both to the Federal govern-*
racy
ment
and to
the economic life of
America.,
,
„
This will require, first, a much
more equal treatment of labor and
business organizations. Organized
labor, too, will have to be
recon¬
verted, and accept responsibilities
are proportionate to its
pow¬
that
As the laborers realize the
er.
un-
trustworthiness
of
the
shifting
politics, and see the dan¬
regimentation lurking in
sands of
of
the guise of the government as an
employer under the slogan "full
employment."
I hope that they
will be among the first to concede
the point.
Then there is great need of re¬
converting
our
csurrency
and i
banking system to a sound basis
for
credit
and
investment.
It
becoming obvious that there
be
to bank note issues.
known
is
must
limit to bank credit and
some
But the only
tail.
First there were
a definite
generally recognized limit to
things, is through the estab¬
lishment and firm maintenance of
in
reserves
suitable
shall
Then war came* and
now 10 million in the
Where do you think these
are going to show up
million
10
to
The only place
is
them
see
in
that I want
the
factories,
stores, and farms operated by
i
■«
5,
i
y.x
-
..
i
i a-
•••vU
*3
the
value
some*:
which"*\
of
the
./.F.F*, :Fj';
Any other scheme of "managed /,
or "money of account'?
must (and always does)
rely upon ,
-
autocratic
control
There
economy.
of
is
a
no
managed
limit
to
debt, bank deposits, or currency
issues, as long as a nation in these
matters accepts the
of
a
sovereign
or
arbitrary will
political pressure
groups.
Non-Partisan
Commissioner's
Need
But back of all these things, lies
the
simple
fact
that
democracy
should begin at home—in govern¬
ment.
Most important as a be¬
ginning, is that reconversion shall
begin with freeing our adminis¬
trative
agencies from domination
by the executive. I urge you busi¬
to stand for expert, non¬
partisan
administrative
sions, such
merce
Trade
rities
Commission, the Federal
Commission, and the Secu¬
Exchange Commission
be
if
from
ment them
diciary.
tem
commis¬
the Interstate Com¬
and
could
them
as
would
we
but
free
politics, and supple¬
by an independent ju- /
Only by
of reasonable
some
such sys¬
regulation,
can
democratic people be assured of
that
free
and
fair
competition
a
which is truly the life of trade.
Let
us remem¬
enterprise
battle of American
Let
us
go
war
won
pro¬
forward with
confidence in the knowledge that,
private enterprise will win again
—will win the battle of
post-war
.'.It
■-
i- 11
■
:
.■
■:
>
J
Things of this sort are the only
problem of reconversion that we
need worry about.
ber that private
free production.
i;F
of
material
currency"
duction.
next?
shape
unit.
there
army.
the
standard
determine
money
the
are
to provide
way
unemployed.
:
Sher¬
General
ministration fell back into politics
again.
Nelson .and Wilson fol¬
nessmen
Trend to Gold Standard
At this
The
and
grow¬
typical American's mind.
the
prewar
African
the
good anti-tank
developed, and the Ad-
guns were
ing list of blunders made by the
eventually. I think that the
gold continues to flow
when
better.
man
clinching the point. Unbelievable
hardship and suffering will lie
that
of
seen
I think
it.
gold, or in other words that our
paper dollars are in for considerr
able
depreciation in purchasing
out
have
played with the idea, but
enough of the bad re¬
sults of experimentation of this
sort to have become fed up with
uing the paper dollar in terms of
firmation
production
That, I say, is now im¬
During the past decade,
possible.
we
have
'
sure
managed cur¬
complete
and
ernment.
gold in Oriental centers as com¬
pared with the Treasury buying
price.
The Treasury keeps on
paying $33 an ounce. In Bombay,
however, they have been quoting
prices ranging from $50 an ounce
to $70 an ounce. Now I have never
heard that the traders in Bombay
called in.
were
was
these
a
control and rationing by the gov¬
of
\
.
campaign, and the General Grant
tanks, went sour.)
Then things
and
be
would
rency,
,
am
This
impossible.
now
/
reconversion
incentive/ system.
At the begin¬
ning of the war, the Administra¬
was soon forced to appeal to
business for help, and Knudsen
there
that, the depreciation
of the dollar with relation to gold
is clearly indicated by the price
fact
is
indi¬
thus
have
I
government.
our
real
problem
is in large part the problem of
converting the government to fa¬
vor individual initiative
and the
only alternative is that of a rigid
collectivist
economy
in
which
Nor is the end yet in
for the President retains
power to reduce the content fur¬
I
alternative to the con¬
which
ditions
sight,
are
The depreciation
of the dollar
3. The prevalence of shortages
rather
grains.
ther.
most important:
seem
Too much idle currency
2.
be sure, the gold
mythical today,
its
theoretical
content has
reduced from 23.22 grains to
is
dollar
the
1.
am
preciated.
will bring higher prices
reconversion period, the
three which
(a) A second great reason why
sure prices will rise further,
is that the standard dollar has de¬
I
why the already existing
inflation
in
Dollar
is the problem of re¬
see,
converting
ger
Thus I have selected from many
reasons
:
In
am
reason
that prices will rise further,
and should do so, in order to speed
Increasing Output No Answer
through produc¬
V-,■ V;
tion
Significant Shortages
Perhaps
or
private
American
enterprisers.
Eventually they must earn a liv¬
ing, and the only way to dq that
sure
in my
the government cancels these dol¬
Must Fight "Further Inflation"
will
Chester
some
power
he doesn't.
bank
loans, that makes the inflation. Fs
In
than
The
risen
But
dollars.
crease
has
its
to
dollars
ing total of well over 25 billion
*
surest proofs that
existed, and will
continue to grow, is the way in
inflation
year
lion
mere
'
time, the "money
same
ing the past
thimble, and a few drops would
keep the fullness at 50 per cent!
Just so, by reducing the required
reserves, we may keep the "re¬
serve ratio at any percentage" de¬
sired!
rising prices
and
business expansion
in due
course.
Nobody is going to let
They
More than
in circulation" has increased dur¬
might reduce the
size of the tank to that of
the
At
cent, which will enable us still
say that the"tank is; half full.
to
inevitable result.
50
per
Eventually,
have
prices
ex¬
To
will
Many rea¬
(1) My first reason is that there
is too. much idle currency to allow
so
reserves,
more
cealed.
we
believe
I
might be given, but I will
mention only one or two.
proposing
by
usual
can
.
that they should rise.
instead to make it unnecessary to
maintain
a
sons
existence of
that the tires
reconversion.
of
riod
the air in the tires.
is
through
going
It is my position that commod¬
ity prices will rise during the pe¬
no
The
thus
boom, and taking a chance on a
subsequent deflation.
proposal to deal with
the situation by reducing the note
and deposit liabilities, which are
No!
the depreciation in our
currency,
requirements.
reserve
There is
the exist¬
inflate
to express
ratio, by reduc¬
Reserve
Federal
the
with
deal
to
we
of two things:
one
must
we
recon¬
manner
adjust ourselves to the existing in¬
flation by allowing rising prices
perhaps the
proposal
realistic
a
ing inflation and go through an
early depression; or else we must
Jow proportion of reserves to note
and deposit liabilities—the lowest
since the bank holiday of 1933.
cant aspect
in
will have to do
cline in the Federal Reserve ratio.
This
deal with
want to
we
version
of inflation is the sharp de¬
ence
Reconversion Techniques
Two
to
This is true because the
to
price advances, unless private en¬
terprisers have strong profit mo¬
tives.
Such motives can be ap¬
currency.
prices will
return to the gold
gold dollar has been devalued, but
prices measured in paper dollars
atten¬
our
tion, and from the problem of
dealing with the actualities of ex¬
isting inflation. It enables the inflaters to keep on inflating—in¬
flating the public debt and inflat¬
ing the non-productive spending
and waste, which find expression
in our vast and expanding deposit
.
it
war.
surer
that
peace,
matter is
of the
part
than
to it
see
standard.
tion from the real source of infla¬
•
that
sad
to
rise,
mo¬
With the coming of
people will demand a right
spend their money.
great
fight is further infla¬
should stop the pump
the pressure in
our tires, or strengthen the sidewalls, or both." This idea of "hold¬
ing the line" and fighting some¬
thing that is supposed to be a
mere
"threat," is just a red her¬
ring drawn across the trail of the
great and growing, inflation which
is already in our midst.
pounds pressure in order to give
satisfactory performance.
If the
inflation of the tires greatly ex*
ceeds some such figure as that,
the car not only rides badly, but
also
"blow-outs"
are
likely to
.
.
that is building up
30
about
to
We
tion.
of automobile tires. Such tires
me
should
we
reminds
of inflation
for making this point
reason
way
tives that attend the conduct of a
Speaking
My
.
is merely this: There is no
extent
Thursday, January 18, 1945
,
'
rz^^jm^r^tssiyrriF
.,
m
-I'W.t."
..
.„
'
»<miwwi«iirii<*iy>vii|iiu|ii<|li,)»iWWy>,,.
Volume
161
"
Number 4352
Additional
THE COMMERCIAL & FINANCIAL CHRONICLE
<
its currency of local use with the
Fund to purchase other curren¬
Expressions Anent
cies,
\■
need
a
that
of
•?■'•"■'
-
should
see
nations
the
(Continued from page 277)
of
I mean
large army.
very
we
The
now
scheduled to
crushed should not be unduly
be
because
weakened
our
natural allies
should
Much
they may be
in: the next war.
said
be
rely upon the Air Force and the
Navy as the first lines of defense,
this
about
taken
Patriotism has
place.
provisions
are
basic.
Without; these, the pro¬
posal could scarcely be called/a
Monetary Fund and certainly it
lending
commanded
have
not
would
the
support it did at Bretton Woods.7
The net
amount
a
over
period
nation may bor¬
from the Fund is equal to its
of time which
row
a
At Bretton Woods definite
quota.
been identified with the creation
quotas were assigned to each na¬
tion. 'These
have
a
threefold
spread our wings over the world,
that is,
how many islands and
bases we are going to obtain,
that
propagandization
complete
has
almost
view of the
in
borrows those
effect
but, of course, much of this de¬
pends upon the unsettled question
as
to how far we are going to
subject but little can be said ef¬
fectively
world situation that will re¬
a
quire a large standing army.
My personal preference would
be for a rather small, efficient
skeleton of an army.
I should
to it that some
mine
function.
They
automatic
only
not
of
limits
the
the
deter¬
nation's
each
privileges,
borrowing
its share
but they determine, too,
in
management of the Fund
and the extent of its contribution
The Bretton Wood
Proposals
will
the
The
proposals
probably be initiated within
next
few
months.
Before
reaching
does
wish
examine
to
concentrate
on
ex¬
stbility or economic de¬
velopments.2 One does not know
whether its credit operations will
be short- or long-term in char¬
acter.
In a recent article, one of
the American
delegates to the
'
Conference stated
Bretton Woods
Although both plans, since their
that
Russia
the
release, have been carefully an¬
alyzed in this and other countries,
discussion has centered mainly on
the Fund—the more
it is in¬
know whether
to
Fund
would
probably use
purchase
capital
to
goods. This he concluded was not
too high a price to secure its co¬
controversial
operation. 4
But
tional Monetary
proposals. Students of
the
subject are agreed that an
international
credit organization
is needed to facilitate discussion
of the two
a measure
if the Interna¬
Fund is to be
a
the
strong
post¬
quota is in
of our contribu¬
lendable assets of the
the
Fund.
In the
nations, it
case
of many other
measures
their access
to the Fund's benefits.
Fund
Based
Quotas
change
care¬
fully their intent and purposes,
the 'advantages and responsibili¬
ties of membership and possible
alternative solutions for the prob¬
lems involved.
dual nature of the Fund
ill for its success.
One
not
tended
decision, Congress will
a
doubtless
augurs
reality
be
in
own
our
tion to
(Continued from page 259)
the
of
dollars
for
period,
war
will
there
as
demand
Inas¬
of the Fund.
assets
much
_
Veisus Alternatives
consideration
the
to
on
preliminary discussions
leading to the Bretton Woods con¬
ference, much emphasis was given
to the various "scientific criteria"
quotas.
the
At the conference itself
seemingly played
of minor significance and
criteria
these
a
determine
to
were
role
political
considerations
became
important.
The Economist de¬
"the
that
clared
nations
of
chase
conference pre¬
certain
a
currency
the
shall
financial
each
limits
on
particular
loans.
recapture
clauses,
the
at the
end
repur¬
year,
of
their
held by the Fund.
But
amount
recapture provisions are sub¬
to exceptions and probably
not apply effectively, cer¬
tainly within the first five years
_
;
of
of the
life of the
nations
likely
Fund, to those
make greatest
to
of its facilities.
use
Net borrow¬
ings are subject to certain inter¬
est
charges which increase pro¬
gressively with amount and with
time, but these are so low that
they would not impel the repay¬
If
ment of the funds borrowed.11
a
nation
member
full
drawn
the
amount
age
has
interest
permitted, the aver¬
charge in the fifth
year amounts to but 2V2%.
Not
until the eighth year, when the
interest charge has increased to
4%,
are the
nation
which must be clarified.1
It is much too small
if it is to be used for the extrane¬
obscurities
surrounding
of expanding inter¬
national trade, financing the im¬
ous
the plan relate not
only to its lan¬
guage but also to its fundamental
purposes.
The
obscurities
of
purpose arise
in part from the
dual
parentage of the Interna¬
tional Monetary Fund: the Keynes
and the White plans.
The pri¬
mary
objective
of the Keynes
plan
was
economic
expansion,
that
of
the
White plan was
purposes
portation of capital goods, devel¬
oping the productive resources of
member
nations
and correcting
maladjustments and
in international
however
disequilibria
trade.
No Fund,
would probably
financing of these
large,
suffice for the
purposes.
cur¬
The
stabilization. • Both objec¬
tives are given emphasis in the
introductory article of the Agree¬
ment where the Fund is charged
rency
have
its credit
when
objectives
direct
operations.
nation
one
needs
tion
These occur
places
its
cur¬
instances from
relief
of
be
and
Can
the
reconstruc¬
from those of
Not only
would the broad purposes of the
Fund encourage a liberal inter¬
pretation of its provisions, but
is unrealistic to suppose that
a
narrow
interpretation would be
separated
applied to the borrowing demands
of
relevance
all
transactions?9'
economic development?19
of
all-inclusive
Fund
the
in
ferentiated
current
first-class power.
a
Not
loans granted on
practical purposes is
automatic basis and granted in
only
are
what for all
an
accordance with
a
set time sched¬
with the Fund to purchase
the currency of another nation.
Some of
the supporters
of the
rency
,of
presented to the American
public a$ a Victory for exchange
and ' for
the
gold
Requirements
such
as
tary
Fund,
the
agency,
International
Mone¬
operate success¬
fully unless lodns are tailored to
can
the
specific credit needs of bor¬
rowing nations and unless careful
study is given to the nature of
those
borrowing
requirements.
of
Some
the
problems involved
become apparent by raising a few
questions.
What, for example,
the
are
requirements of England
The stabil¬
rather than external.
ization
of
the
to be a matter
internal
franc
would
seem
largely of checking
inflation.
To
still
cite
cite
value of ft
member's currency must be cx~
pressed in terms of gold or of
the gold dollar, that each member
must maintain the gold value of
its assets in the Fund, that the re¬
purchase clauses call for the use
of gold and convertible currencies
and that charges to the Fund are
ordinarily to be paid in gold. The
same general provisions are pre¬
sented to the British public as a
triumph
of
flexibility
and
as
either the
opposite of the gold
standard
controls she has imposed over
her
foreign trade, stand in need of a
stabilization loan?12. The external
foreign exchange value of the ru¬
ble
has little economic
signifi¬
Russia's
cance.
long-term
credits
of
are
an
for
invest¬
The point I wish
ment character.
to
needs
emphasize, in citing these par¬
ticular
instances, is that the spe¬
cific credit needs of individual na¬
or
sponsors
par
such
as
the
that
parture
radical de¬
a
tional
is
autocrat
duced to the status of
monarch.
re¬
constitu¬
a
To
prove their
British sponsors cite
relating to changes
contention,
sections
exchange rates, to
scarce
cur¬
rencies, to the retention of ex¬
change controls during the transi¬
tional period and to the perma¬
control
nent
of
capital
move¬
ments.
John
Sir
Anderson, in the ad-'
from
dress
which
have
we
al¬
ready quoted, declared that Eng¬
land by reason of
the
Fund
would
membership in
surrender
not
"any ultimate right" to follow its
exchange policy.
"For those
own
who
are
particularly anxious on
question of our freedom to ad¬
just our exchange," Sir John con¬
tinued, "I would recommend a
study of Section 5 of Article IV
the
the document, the last para¬
graph of which makes it obliga¬
tory- on the management of the
Fund to allow a change in ex¬
change rates in order to correct a
fundamental disequilibrium." The
of
inference
to
drawn
be
is
statement
this
from
the
that
nation
re¬
change in its rates
exchange is itself to deter¬
questing
of
the
whether it
mine
mental
faces
"funda-
a
and
disequilibrium"
whether, in consequence, it is en¬
titled to such a change.
Somewhat
in
similar
Joint
the
provisions
Statement
Ex¬
by
perts,^ which furnished the basis
for
the
Bretton
Woods Agree¬
ment, caused Lord Keynes to de¬
clare that the'
proposals were the
opposite of fhd gold stand¬
exact
ard.
"In.
duces
'
fact," :the '* plan
intro¬
this'" respect,"
Lord
Keynes
continued,
"an
epochmaking innovation in an interna¬
in
tional instrument.
.
.
,
it provides
that [the external value of a cur¬
rency] should be altered if neces¬
sary so as to conform to what¬
ever
defacto
sults
from
internal
value
domestic
which
themselves
mune
from
re¬
policies,
shall
be
im¬
by
the
that
one
criticism
Fund."15
a
third case, does Russia,.in view of
h£r economic system and of the
modified
in
atleast
American
fact .that the
the
in
international credit
sections
These
stabilization
duced.
Borrowing
for
conduct
currency
nations.
ate
,
stabilization.
.
member
the
.
The
Cqde
Fund and the mem¬
obliged to consider
means by which the Fund's hold¬
ings of its currency are to be re¬
ber
characterized
been
by supporters of the proposal as ft
standard,
technical
a
have
form.12
unedifying
the
sented
restrictions—sections
and
ject
for foreign credits, and in partic¬
spectacle
ular, for dollar credits, in tne im¬
gathering being
mediate postwar period?
Inas¬
jockeyed by purely political con¬
much as Britishers declare that
of;-and to promote policies re¬
from which nations are to meet siderations, and the determination
they will assume responsibility for
specting international monetary
of the quotas resembled the proc¬
temporary shortages? 5
the liquidation of blocked sterling
problems. The question at issue is
ess
of political chaffering more
If the International Monetary
balances, it is generally assumed
whether this particular proposal
than
an
objective
attempt
to
that
England's
dollar
require¬
will succeed over the long run in Fund is to be assured of success, achieve
equity.2
More recently
furthering international currency it would of necessity be allowed the quotas have been likened to ments will arise from her need
stability and monetary coopera¬ to concentrate solely on the prob¬ lines of credit granted by com¬ to import food and raw materials
in
the
transition from
war
to
All mercial banks. The
tion.-It can only do so if its ob¬ lem of currency stabilization.
analogy, how¬
peace and that these requirements
jectives are clear and well de¬ extraneous objectives would be
ever, is
a completely fallacious
fined ; and
its provisions unam¬ eliminated from the Agreement. one, since quotas are not related may approximate $3,000,000,000.
biguous. Otherwise it is doomed A true stabilization fund would to economic need, credit worthi¬ Unless limits on her, borrowing
powers are waived, England, over
to ultimate failure and will re¬ use its resources to make only two
ness or to capacity for repayment.
a period of time, can obtain a net
tard
rather
than yadvance
the types of loans. The first, a very
The Fund may deny loans to
amount of $1,300,000,000 from the
loan,
would
bridge
cause
of international collabora¬ short-term
any member "using the resources
seasonal gaps in the balances of
Fund.
If her needs for dollar
tion.
•
of the Fund in a manner contrary
payments of raw material pro¬
Defects of the Fund
exchange do come to $3,000,000,to the purpose of the Fund," but
The
more
one
studies
the ducing nations, and the second, a the purposes are so all-inclusive 000, is the difference to be ob¬
long-term
loan,
would provide that few transactions would seem tained from the Export-Import
Agreement, the more is one con¬
nations, engaged in measures of
Bank, or from credits granted or
vinced that the Fund lacks the
barred.
Specific prohibitions are
currency
reform,
with
needed that
grants-in-aid given by the Amer¬
the Fund is not to be used
clarity, singleness of purpose and
ican Government, or from an ex¬
currency
reserves.
The second to
internal consistency essential to
meet a large or sustained out¬
tension of Lend-Lease?
Should
type of loan would not have to be flow of
its successful operation. Sir John
capital, that it is not to be
not England's need for dollar ex¬
large in amount, if borrowing na¬ used
to provide facilities for re¬
Anderson, Chancellor of the Brit¬
tions had put their financial houses
change be viewed in its entirety
ish Exchequer, in an address at
lief or reconstruction or to deal
in order; and only if they had put
and be handled as one transac¬
the Lord Mayor's luncheton on
with
international
indebtedness
tion?
To cite another case, will
their' financial houses in order,
Oct: 4, 1944, described the' Agree¬
arising out of the war. These pro¬
should such loans be extended.
ment
as
a
"difficult document,
hibitions themselves give rise to France, in view of her large gold
The
International
Monetary
holdings, require an external loan
difficulties
of
inevitably long and technical" and
interpretation.
for stabilization purposes? Unlike
stated that it contained some "ob¬ Fund, with initial total assets of What constitutes a large or sus¬
the
British
situation,
France's
scurities of language," which had $8,800,000, is much too large if it tained outflow of capital funds?
is to be used solely for currency
monetary problems are internal
led
to
Can capital transactions be dif¬
misunderstanding',! and
used to finance the purchase of
capital goods, how can it be de¬
scribed
as
a
"revolving fund"
trols
which
would
No
the
which
of
Under
Political
Considerations
In
definite
place
life
member
in
currencies.6
lijgPeacetime
g
it
which
the
281
British
opinion
widest
of: the
holds
deviations
of
the
International
Monetary
Fund
gold standard is to be
the
from
found
Article
in
scarce^ currencies.
that
stated
VII, concerning
Lord Keynes
somewhat
similar
provisions in the Joint Statement
by Experts placed very definite
responsibilities upon creditor na¬
tions.16 Theirs was the responsi¬
the
supplying
implied, of
he
bility,
needed to
funds
prevent the
draining of reserves away from
ule, but they are granted without
only with the duty of advanc¬
tions should receive careful study
and to prevent deflation in debtor
definite termination.
There are
ing international monetary co¬
and
that
the
credits'; granted nations.
According'to his point
no specific provisions in the plan
operation, of promoting exchange
should be "tailored" to Tit. par¬ of
proposal have tried to maintain
view,;- • business
depressions
stability and of establishing a mul¬ the fiction that, by reason of the
6 Federal
Reserve
Bulletin,
September
ticular requirements.
>\Ve: should might not have occurred had
tilateral system of payments on
1944, p. 856.
not attempt to fit all credit, re¬
techniques
involved,
the Fund
—;—-C\. '
U'y
7 Newspaper accounts of the conference
current account but is also charged
13See
Einzig,
"Is It a GoM Stand¬
did not engage in lending opera¬
quirements to
the ' Frocrustean
revealed that
certain
nations apparently
with the duty of facilitating the
ard?'"1 The Banker (London), September,
tions.
It must be borne in mind, were more interested in the sums that
quotas of the International Mone-. TS44.C*'-' '
v
expansion and balanced growth
however, that a nation's currency they could borrow than they were in the tary Fund.
y
: v. ; <v;
14-DO.ted: April 21, 1944.
V ' :
of international trade, and of con¬
problem of currency stabilization.
■(
-15 Parliamentary Debates, May 23, 1944.
is good only in its own territory
8 The Economist (London), July 29, 1944,
116 Ibid.' According to the "Joint State¬
tributing thereby to the promo¬ and that
"Is It a Gold Standard?"
wh^i .a nation places p. 138.
ment
by
Experts,"
a
currency
became
tion and maintenance of high lev¬
9 Particularly in view of the fact
that
scarce when
the Fund's holdings-were on
The obscurities of the Fund's
3 An article in the Federal Reserve Bul¬
els of employment and real in¬
the
Fund finances
a
passive balance of
the
point
of exhaustion.
According to
letin (September? -1944,' p. 850.) stated that
payments not specific transactions.
See provisions relate not only to its
come
and- to the development of
the Bretton Woods Agreement, a currency
the
"revival
and expansion
of interna¬
Williams, John H. "International Mone¬ purposes and its lending powers
becomes scarce when a general scarcity de¬
the productive resources of all
tional trade is the central objective of the
tary
Plans."
Foreign
Affairs, October,
not
.
:
•
■
■
.
;
.
member nations.2
;
v
.
;
-
-
International
Monetary
Fund."
1944,
Edward E.
"The International
Monetary Fund: A Consideration of Cer¬
tain Objections."
The Journal of Business
4 Brown,
'
;1 The
tober
5,
2 The
dered
of
Financial
even
such
News,
1944, p. 3..
purposes
more
terms
equilibrium,
as
(London),
Oc¬
v
.
of the proposal.are ren¬
obscure by frequent use
maladjustment
which*
are., never
and
defined.
dis¬
of
the
1944,
University
Chicago,
October,
i>. 202.
5 Federal
1944,
of
p.
851.
Reserve
p.
September,
n.
but also to those sections concern¬
15.
if -they
be so separated,
might not the Fund be used indirectly for
such
to
purposes?
make
dollar
Bulletin,
49,
10 Even
use
Nations would be tempted
their holdings of gold and
exchange
construction
to
of
finance
could
and
other
to
to
finance relief and re¬
make use of the Fund
requirements.
ing
stabilization,
11 Over
nations
nations
12 See
and
above
exchange
the
interest
con¬
charge,
purchasing the currency of other
are
required to pay
a
service
Brown
(op.
cit.),
p.
202.
However,
function
the
plan
Fund's
should
in the Fund or in the
if the repurchase pro¬
International Monetary Fund
whether
velops,
market.
visions of tne
as
efficiently
declare,
holdings
coincide
as
the
of
with
the
a
of
sponsors
depletion
partic'ar
a
of
the
ru^-oncy
general scarcity.
(Conitnued on page 283)
THE COMMERCIAL & FINANCIAL CHRONICLE
282
DIVIDEND NOTICES
Dividend
Proposed Floor
Trading Prohibition
7s
19
dNoiice
(Continued from page 259)
I.
BURLINGTON
CORPORATION
MILLS
The Board of Directors of this Corporation
followino regular divi«
declared the
Las
dends:
5% CUMULATIVE PREFERRED STOCK
$1.25
share
par
COMMON STOCK ($1 r«
50 cents per
to
or
value)
share
payable March 1, 1945,
Each dividend is
record
of
Stockholders
business February
WILLIAM
the
close
1945.
13
>.
at
COULTER, Secretary
AILIS-CHALMERS
MFG. CO.—
PREFERRED DIVIDEND NO. 4
one
dollar ($1.00) per
on
the preferred stock, $100.00
value, of this Company, lias "been de¬
clared, payable March 5, 1945, to stock¬
A
dividend
of
share
par
holders
ness
record
of
the
at
close
of
busi¬
February 12, 1945. Transfer books
■will not be closed. Checks will be mailed.
'
"
W. % 1IAWKINSON,
Secretary-Treasurer,
January 10,19.ft5,
The Function of the Floor Trader
The presence of the floor trader on all important ex¬
changes throughout the world is not a matter of chance or
haphazard evolution. No one preconceived the idea.
No
one "invented" the profession. It is the result of an economic
principle and an orderly evolution arising out of mature
trade practices,
It developed because it was essential to the
orderly and continuous marketing process, whereby values
which are offered for sale are kept stable. It minimizes wide
or
abrupt fluctuations, due to temporary absence of effective
buyers or sellers, as the case may be, or to a temporary. dist
equilibrium in supply and demand. Thus, the term "p&cie
stabilizer" has been applied to the floor trader, whatever his
individual motives or aims may be in carrying on his trans¬
actions.
Economists and others who have made a life study
of business evolution and marketing practices have used this
expression. If abuses and "privileges" exist, it is not be¬
cause of a fundamental error or
fallacy in this economic
concept. Evils and crime exist in all professions and in all
trades.
To eradicate these evils we do not ordinarily pro¬
pose to abolish or destroy essential economic activities.
We
do not, in these days, urge that butchers and meat dealers
be outlawed, because of black market practices in their
"privileged" position
not, act, as a group, toward a sta-.
him, they agree that any legis¬
operations like those of the cot¬
ton broker or lumber merchant, which economize the capital
of the community and have become a necessary feature in
modern business life, would be attended by great and disas¬
trous irregularity in prices. ( Any legislation of this kind, in order to be successful, must be contrived so as to affect gam-Y
bling transactions and leave the legitimate ones compara¬
tively untouched." (p. 108)
■
a
The
Thursday, January 18, 1945
Arguing along the same lines, Professor Henry Crosby.
Emery in his well known work, -'Speculation on the Stock
and Produce Exchanges" remarks (p. 103):
:
^
"In the course of time, the extension of exchanges
brought out a distinctly trading class. Trade, as distinct *
froni exchange, means buying in order to sell again with a
view to gain from the transaction.
Evidently, the exchange'
of goods does not necessitate a trading class, and much ex¬
change takes place today without the intervention of a
trader.
But any great extension of exchanges is impossible
Without such a class, and it is only When the producer and
the trader are differentiated that real commerce begins."
•,
"This
trading1 class," he adds, "stood ready at any timer
the extra product of the individual producer
and assume the responsibility of the exchange.
Thus, the J
trading risks, that is, of a change in value, were shifted to:
the shoulders of a new class, and the members of this class r
in turn, so far as they assumed such risks, became the spec- r
ulators of the community."
•
to take
over
.
n.
business.
The SEC Report on Floor Trading
In
1909, Governor Charies E. Hughes appointed a com¬
mission (of which the renowned editor of the New York
Boston, Mass., Jan. 11,1945
At
a
regular meeting of
the Board of Directors
of The First Boston
Corporation held
on
January 11, 1945, a dividend of
$2.00 per share was declared on the
.capital stock of the Corporation
...payable January 31, 1945 to stock¬
holders of record as of the close of
business
.
on
V
January 20, 1945.
Edward J.
.
'
;
Costello,
Treasurer
.'■
JOHN MORRELL & CO.
DIVIDEND NO. 62
A
dividend
of
Fifty
Cents ($0.50) per share,
the
on
1945,
31,
January
he
&
1945,
as
Co.,
paid
January
of record
shown on the
stockholders
to
19,
capital stock of
Morrell
John
will
.
books of the company.
Ottumwa, Iowa. Geo. A. Mdrrell,Treas.
NATION AL DISTILLERS
PRODUCTS CORPORATION
The Board of Directors has
declared a regular
quarterly dividend of- 500 per share on the out¬
standing Common Stock, payable on February 1,
1945,,to stockholders of record on January 15,
The transfer books will not close.
1945.
:
•
THOS. A. CLARK
\
December 28,1944
A
m
treasurer
dividend
of
35
cents
a
share
on
the Capital Stock,
value $13.50 per share,
has been declared, payable
Feb, 28, 1945, to stockholders
par
Y
JOHNS HOPKINS, Treasurer
December 26, 1944
Philadelphia, Pa.
of its revolutionary proposal, the Trading
Exchange Division of the SEC has issued a "Report on *
"Evening Post," Horace White, a recognized authority of* Floor
Trading." This report, according to James A. Treanor, >
finance, was chairman) to make legislative recommendations
Jr., Director of the Division, is "the work of several months
for the reform of securities and commodity
exchanges. This
study" of the markets for certain low-priced motor stocks
commission, after a thorough study of all the phases of stock in the
spring and summer of 1944, and was prepared by three
exchange operations, noted that "the problem, wherever
individuals, under Mr. Treanor's direction. On the basis of V
speculation is strongly rooted, is to eliminate that which is this limited
investigation, with its inadequate sampling, con-;
wasteful and morally destructive, while retaining and allow¬
ducted during a period of abnormal conditions due to war ;
ing free play to that which is beneficial." Its report did not and other
emergencies, a proposal is launched for legislating
praise or condemn the activities of the floor traders, and out of existence a class of stock
exchange members that have
made no recommendation regarding them.
Yet, it did men¬
performed an economic function for many decades, and, un- ;
tion that "the practice of specialists in buying and selling
less prevented, is likely to bo put into effect as Rule X-11A-L '
for their own account often serves to create a market where
It is authorized by virtue of Section 11 (a) of the Securities *
otherwise one would not exist."
Exchange Act of 1934, which empowers the SEG "to regulate J
Perhaps the best statement of the contribution of the or prevent floor trading by members of National Securities J
floor trader to orderly securities marketing is that of Profes¬
Exchanges, directly or indirectly for their own account or t
sor Charles Amos Dice, who made a
personal study of stock for discretionary accounts."
;
J
exchange operations two decades ago. In his book "The
When it is recalled that the whole scheme of securities,
Stock Market," he says, (p. 193 et beq.) "The results of trad¬
regulation by Congress was drawn up in a period of violent-;
ing [by the floor trader] on small margins of profit with reaction, a result of the
speculation excesses of the boom Y
rapid turnover has three beneficial economic effects: (1) it.
period of the 1920s, it is not surprising that a rash, drastic Y
creates a continuous market; (2) it narrows the spread be¬
and unwarranted provision of this kind was inserted in the
tween the bid and asked price; it stabilizes the price from
law.
It is merely an illustration of an attempt to straighten
hour to hour throughout the trading period of the day. Since
a rod
by bending it too far in the opposite direction. It was
the room trader (i.e. floor trader) is always ready to step in
never intended under the constitutional
powers granted to
with an order to buy when no one else is buying, or to sell
Congress, that a/iocal and private business transaction, not
when no one else is selling, there is always a market that
involving interstate commerce except by the most remote
fluctuates relatively little and in which the intervals in price
implication, could be entirely prohibited, and that a legiti¬
from one sale to the next are at a minimum.
The trader
mate occupation of value to the public could be entirely
who devotes his time to his work is often criticized as being
wiped out by bureaucratic action.
a
high class gambler who manipulates prices and creates
But aside from this, there is a misconception of the basis
artificial values: On the contrary, his work stabilizes prices for the
proposal! The theory on which it is based is that the
and provides a constant market."
floor trader "by virtue of his access to the floor of the ex¬
It was the late'President Hadley of Yale University, a
change
has the advantage of instant information con¬
distinguished economist in his day, who set forth in clear cerning the technical position of the market." On the same
language the value of dealer speculation (and, by implica¬ grounds, why not prohibit a rare book dealer fronj purchas¬
tion, floor trading), as a price stabilizer. President Hadley ing a volume at a public auction, on the ground that he has
writes in his widely read book "Economics" (page 101-103): private information of the rareness and the desirability of
"Those who hold the commercial theory of value believe that the item, and therefore exercises an undue advantage over
.
.
.
of
a
service to
society, independent of the labor
distribution; and that this service is of essentially the
Techniques required in prepar¬ same
character, whether the sale be made in a different mar¬
ing demand studies important in
ket or in the same market.
They hold that the work of the
proving cases and necessary for
eliminating the effects of general trader, in acquiring goods when they are cheap and parting
business conditions in reconstruct¬
with them when they are dear, results in the increase of
ing earnings are explained
in their
utility to the public. .. . The speculator of today makes
"Dynamic Economics" by Charles
his money chiefly by taking advantage of differences of price
F. > Roos.
Chapters include: De¬
mand for Consumers
Goods; Au¬ between different times. If the speculator foresees a rise, he
tomotive Demand for
Gasoline; buys ■wheat today with the hope of selling at an advance.
If
Demand for Agricultural Prod¬
he foresees a fail, he contracts to make future deliveries at
ucts; Demand for Capital Goods:
Factors
Influencing Residential today's prices, in the hope that he can secure the filling of
Building; Growth and Decline of those contracts at rates low enough to leave him a profit.
Industry; Joint Demand and Loss This is the type of transaction which forms the bulk of the
Leaders; Production Costs and business on all the
leading exchanges of the world."
Profits, and Adjustments of Costs.
A
of
few
are
$5.00
copies
still
from
of
this
pioneer
available at
the
a
cost
Econometric
Institute, Inc., 500 Fifth Avenue,
New York 18, N. Y.
.
.
and
'
trade renders
"Dynamic Economics"
work
In support
.
of record Jan. 31, 1945.
THE UNITED GAS IMPROVEMENT CO.
V
or
bilization of prices, and, like
lation which "would prevent
.
.
other bidders?
Or should
an
art connoisseur be forbidden to
purchase a painting, at the price he is willing to pay, on the
pretext that in the transaction he is exercising a knowledge
and skill, which is a "privilege" not possessed by the general
public? Should real estate operators be outlawed, because
they have a skill aiid>acumen which those -not-in the business,
but who deal with them, do not have?
It is to be expected
that one who exercises a trade, or profession should use his
skill in thesei matters Y and, unless" fraud or deception is in¬
volved, the gains and emoluments are economically » and
morally justified,; Otherwise,;why undergo training and ex¬
perience in acquiring an occupation or a skill?
,v
But it may be answered that the dealings of the floor
trader on an exchange are adverse to the public interest.
In
what respect?
If the trader manipulates the .market, or
President Hadley's extended exposition of the value of effects a corner, or conspires with others to give a security
speculation through dealer trading, as published in 1896, Has an artificial value, or does any act which may injure those
been widely adopted by other economists, and, on the whole, for whom or with whom he acts, he is not only subject to
there has been little in the way of refutation that traders or discipline by the rules of the exchange, but he is amenable
"jobbers" (as they are called in England), whether occupying to punishment under the law of the land.
287
Volume
FINANCIAL CHRONICLE
THE COMMERCIAL &
Number 4352
161
the International
From time out of mind, it has
;
.
been held that shrewdness
personal pecuniary
gains were virtues rather than crimes. To hold otherwise,
would be to adopt the socialistic principle "From everyone
according to his ability, to every one according to his need."
It would be the virtual adoption of Statism or Fascism, and
the destruction of private enterprise!
\<' <
and business
•
;
«
;•
foresight, and the desire for
There is
a
no
economic
or
moral basis for the theory that
profit causes a loss to the investor, if he car¬
occupation honestly and according to the existing
floor trader's
ries
his
on
regulations of the Exchange. As pointed out above, he xis
recognized on economic grounds, as a benefactor, in that He
aids in maintaining a continuous value of securities and commodities and prevents, by his intervention, either as a buyer
or as seller, wide and precipitate fluctations in prices.
And,
nothwithstanding the adverse opinion of an untutored Congressional Committee, "his services are particularly conspic¬
uous on occasions of stress, when there is a great preponder-
•
v
-
:
:
ance
of either
buying
The stock trader
which
excess
supply,
or
or
selling orders."
4,
The Bretton Woods
(Conitnued from page 281)
creditor
quired by debtor.
sponsors
of
the
between
small possibility, however, that a
multilateral system of payments
can
and
if
on
Differences ;
There is
;
some
discussion in the Commission's
"Report"
regarding the exercise of both broker and dealer functions
by the floor broker.5 This combination is held to react in
some respects to the disadvantage of members or customers
of members whose orders he has accepted for execution.
Here is an old controversy and it has been considered long
before the so-called "Segregation Report" was made by the
SEC in the months immediately following the enactment of
the' Securities Exchange Act.
•
,
'
has
inflation
internal
upon
inquired
tions
wohld
of V interpretation
been
whether these sec¬
prevent special cur¬
arrangements within the
sterling area.n
Specifically the
question had to do with the pur¬
chase
of the
entire
raw
material
of the Dominions
and payment in a type of sterling
17
of
one
stability
movements
worth
of
rests
in the
currencies.
Such parallelism
rency
output
parallel
internal
concerning the avoidance of dis¬
criminatory
currency
practices.
Editorially "The Times" (London)
has
Such
eliminated.
have also arisen over the sections
Function
ex¬
barriers to international trade are
Discriminatory Currency
•'
Practices
Combination of Trader-Broker
foreign
the
checked, if foreign exchange and
trade controls are removed and if
stock jobber acts as a
is poured,
and
plications of exchange stabiliza¬
tion.
Exchange stability having
economic significance results only
the part of the
Fund's advocates that they do not
pretense
exists, however,
only when nations refrain from
following independent economic
policies. If nations follow inde¬
pendent policies, exchanges
on
both current and capital account
will of necessity be
subject to
continuous
change
achieved.
control
stability
true
ex¬
be
Collaboration
Not
Promoted
An
analysis of the provisions of
separation of the dealer and the broker function has
vesting and speculating public becomes of peculiarly great
practice on the London Stock Exchange for many
significance in times of market stress. It is during periods
decades, and whatever the cause of its origin, it has become of market
excitement, either on the up or the down side, that
The
firmly established. But it is not followed on other European
exchanges, and there has never been a genuine or widespread
need in this country for a segregation.
Professor Emery
the floor trader
performs his function to the best advantage
and his profits or losses are greatest.
Knowing intrinsic values and market psychology, the floor
calls this "jobbing" system cumbersome and directs atten¬ trader in these
periods acts as a damper on wild sweeps in
tion to a criticism of it in the London Economist as far back market movements.
This has also been a function of the
as
Sept. 30, 1893.
■
"It is hard for
"short
American broker to
an
see any
advantage
plan," says Professor Emery j "and many doubts
expressed by the London traders, themselves.
It is
claimed that, in this way, a ready market is always secured,
which would not be provided if the broker were to deal diin such
■
;
a
are
'
and when his
risks
seller," but since Congress, in its gracious capacity of
protector of the "innocent" stock speculator, has almost
nullified the economic benefits of short selling and short
the
buying in spite of the contentions of economists, floor traders
are the only leveling element left that can prevent explosive
movements in stock values on the floor of the exchange.
*
*
♦
'
*
-
-
*
rectly with broker, because of the difficulty of finding a
broker who wanted the particular stock in the particular
amount. But no such difficulty exists in the case of an active
to
Y.
cumbersome and unnecessary dupli¬
cation of middlemen with a
corresponding extra charge on
The Report's
Inadequate Study and Erroneous Conclusions
The few "case studies" of floor traders' transactions
J f
\
But aside from the considerations expressed by Profes- given in the so-called "Report" are far too inadequate and
sor Emery, are not the evils of an exchange member dealing
unrepresentative fo form a basis for sound judgment.
If
insurance, companies based their charges for the risks they
on his own account and also acting as broker, grossly over¬
rated?
Any exchange member, trading against his custom-; assume on actuarial data of this character, they would re¬
I ers' accounts, is likely to have a short business career. He quire insurance on their own account to operate safely. Se¬
would not only suffer punishment-under the exchange rules, lecting a few "low priced" automobile stocks as "cases," and
but would soon lose his clientele, and it cannot be assumed limiting the period of market action, to a few days, they
that investors and stock speculators are unintelligent indi¬ found what they were looking for; namely, an undue influ¬
viduals, morons or non compos mentis, and therefore can be ence on market fluctuations due to "purchases on members
perpetually deceived by those with whom they entrust their own account." To obtain satisfactory data for drawing sta¬
tistical conclusions in so important a public matter as that
dealings.
" '
'
'
■
1
IV.
concerning the prohibition of a recognized and long existing
occupation requires not merely a small sampling process,
;
The Extent of Floor Traders' Dealings
but a detailed enumeration covering long and different pe¬
The Report of the SEC Trading and Exchange Division
riods under varying conditions. Such a study was attempted
discusses the concentration of floor trading and its effects
a
quarter of a century ago by the Federal Trade Commission
on price movements and market action.
It is asserted that in the matter of
trading in grain futures, and though a vast
there are but between twenty and thirty members who at
sum of the public's money was spent in the investigation and
present are floor traders and that the annual business is
several years, with numerous employees, consumed in the
around $350,000,000 or about 5.3% of total transactions on
work, it changed matters very little and allowed future trad¬
the New York Stock Exchange. This is seemingly too insig¬
ing to continue as a part of the grain marketing machinery.
nificant a fraction to cause so much study of its effects and so
And so, one can safely question the conclusions of the
much outcry as to its evils.
But the number of members
involved and the amount of the transactions is not the case Report to the SEC that the floor trader should be extermi¬
in point.
Conditions may change and the economic function nated, because: (1) "floor trading engenders excessive trad¬
of the floor trader may become more important.
In 1928 the ing and excessive fluctuations in price"—(the very opposite
of established economic doctrine)—; and (2) that the Com¬
number reported on the N. Y. Stock Exchange was 117, but
five years later it had increased to 173.
Today, there are mission should immediately invoke its powers under which
it may "regulate or prevent floor trading by members of
possibly not more than a score who gain their livelihood ex¬
national securities exchanges, directly or indirectly for their
clusively in the occupation.
own account or for discretionary accounts."
As already pointed out, the trader's service to the in-
f the
public." (p. 377).
.
-
T
The assertion in the "Report" that the recommendation
prohibit floor trading at this time comes because "of the
rapid succession of events which will precede and accom¬
stock, where there is active bidding among brokers in open pany the nation's transition from war to peace," is not only
market, and in the case where the English method would unfounded, but also is, in reality, a contradiction. It is in
doubtless be of advantage, that is, where the stock is a spe- such
periods that the floor trader, with his astute business
cialty or the market is one-sided, the jobbers usually refuse acumen, can perform a service in keeping values in line with
to trade, and brokers have to fill their orders in some other
existing and pending financial and economic conditions.
way. .In the long run, the English jobbing method seems
to the American mind a
•
.
V ' ; \
;
:;I|f
provisions, ambiguous.
Its lending provisions ignore the
lessons
of
the
past and
would tend to perpetuate bad sit¬
uations.
Far from being a code of:
conduct, the Fund's pro¬
visions, subject to diverse inter¬
pretations, would provoke inter¬
currency
The International Bank
"The
Bank," "The Economist"
(London) has declared "is less
controversial
than
Fund
the
controversial in that its
are
and
urgently needed."is
more
It is
precise.
more
ently
needed
needs
it is less
objectives
more urg¬
that
credit
of the
in
the
postwar period will
take the form mainly of a demand
for
long-term
The
funds.
investment
provisions of the
Articles of Agreement of the In¬
lending
Bank for Reconstruc¬
ternational
tion
and
contrast
Fund.
Credits
..
of
not
are
the
to
those
to
in
stand
Development
marked
be
automatic basis
irrespective of the credit worth¬
granted
on
an
iness of the
to
is
tee, in
a
No credit
borrower.
exteifded
be
tated unless
facili¬
or
competent commit¬
a
written report, has rec¬
the project and un¬
Bank is convinced th£j:
ommended
the
less
International
September 5, 1944, p. 5.
and
cannot
1
been the
-
its detailed
national dissension.
changes probably arises from the
fact that altogether too little at¬
tention has been given to the im¬
Ameri¬
by ignoring such cleavages or by
the
be achieved.
standard
sions is very
tal.
that'the
not
"promote interna¬
tional monetary collaboration. Its
objectives are contradictory and
ambiguity of the Fund's
provisions concerning the gold
interpretation of these provi¬
wide and fundamen¬
Certainly nothing is gained
can
Monetary Fund
conclusion
The
The cleavage
British
the
If such ar¬
rangements are approved there is
rency, is not .unilateral.
It is a
responsibility to be shared in by
all member nations.
expended only in
the United Kingdom.
The American
plan reply that
will
the
credit
which could be
willing to
tn$ responsibility for correcting
problems, arising from the gen¬
eral scarcity of a particular cur¬
deficiencies due to excess demand.
/.
been
nations
extend credits in the amounts re¬
to
Fund
Proposals
Veisiis:" Alternatives
®
exist.
reservoir into
and out of which is drawn
leads
the
and
borrower
Loans
to
are
will'
guarantor
be able to meet their
obligations.
tailored
be
fit
to
borrowing requirements
and the use of the proceeds is
subject to supervision.
specific
Those
who
the
sponsor
Bank
declare that it is intended to sup¬
plement not supplant the private
investment
offered
Evidence
market.
that
is
its
principal task
will
be to
guarantee securities
floated through the usual banking
relative
channels.The
of
amount
extended
loans
directly will
not be large.
The Bank is to
facilitate credit extensions only if
is
it
satisfied
that
the
otherwise
would
not
obtain
loans
on
borrower
able
to
to
reasonable terms
and at reasonable charges.
The
relationship of the Bank to the
private investment market will
depend largely upon the defini¬
tion given to these conditions.
A
conservative interpretation would
confine the Bank's operations to
those credit
ficult
to
areas
(soqiewhat dif¬
where risks,
delineate)
by reason of political or economic
uncertainties
of lack
confidence, would not be as¬
sumed by private markets and yet
where loans over the long run
might prove economically sound.
by
or
reason
of
The Bank itself would have to set
such marginal'
involved,
as
by the record
of those
floated under the auspices of the
League of Nations, are very great.
fairly high rates
The
loans.
on
risks
shown
The
success
of
the
Batik
will
largely upon
the con¬
and competence of its
depend
servatism
*
*
:
and
its
freedom
political influences. A com¬
management
is
always
of vital concern in credit institu¬
management
from
petent
tions and particularly so in one in
which borrowers will have con¬
siderable influence.
ance
The import¬
obtaining the best man¬
of
recognized in the Ar¬
Agreement, which in¬
of the Bank
agement is
ticles
of
structs the President
appoint officers and staff of
highest standards of effi¬
and of technical compe¬
tence." Freedom of the Bank from
to
"the
ciency
political influences and from log¬
rolling tactics will dependvupon
the self-restraint exercised by' the
main stockholders. The Bank will
succumb to early failure if the
member nations look upon it as
an
agency
to further their imme¬
diate selfish objectives.
As
authority
one
has
pressed it, the Bank is "a
IS
1944, p. 730.
are jointly and sev¬
the extent of their sub¬
on securities guaranteed.
December 2.
19 Member
erally
scribed
liable
ex¬
venture
nations
to
THE COMMERCIAL & FINANCIAL CHRONICLE
*-ot
nious
A^Repoil fiom
;
:
•'
1
1 he War Front"
(Continued fi
Dm
great interest because that vein
and
of American humor is what saves
New
I
and
Americans
the
Frazier, who was a
co-traveler with me, smiling down
here. We had many good times.
Uncle
•
Dunk
the
York;
Newfound¬
of
wastes
magnificent airport and
to the Hotel De-
a
on
whisked
were,
The story is told about an Amer¬
an
barren
land
The GI is saved by his humor.
_
"I
over
were
we
hour later Boston;
an hour later Augusta.
Territory
means nothing in those ships. Six
hours later we dropped down on
old
see
hour later
an
officer who was very eager
Gink—in the Army they call all
get a Luger revolver such as
is carried :by the German officers.
foreign hotels DeGink—where we
had hot bacon and eggs and but¬
ter out of a bowl and all kinds of
ican
to
that the Ger¬
You know they say
soldier fights for the
soldier for sou¬
but the American
jump would be.
We took off again at two in the
determined
That morning for Iceland. I spent the
was
his chief job. He stalked a nine hours in the co-pilot's seat
German officer and finally got and never have I thrilled to any¬
that he would get a Luger.
and
just
thing
him
shoot
could
he
where
him
hour
he went to fire, a GI
the German.
as
ride.
here
over
fired first and killed
during that nineThe Northern Lights
I did
as
the
on
left, the
great
'
billowy clouds below that looked
leaned
over
and
reached for the Luger and the
soldier
called
out, "Captain, I
Captain
Our
'
'
■'
'
*:
When
on
fly¬
we were
ing toward, and later the little arc
of the sun rose and all that great
billowy
clouds
North
Atlantic
with pink
touched
were
from the
and
of
mass
It
sun.
was
beautiful
a
thrilling sight.
hours
Nine
later
dropped
we
down in Iceland to another mag¬
nificent
airport.
I thought the
whole thing was done rather ex¬
the
America,
left
might ski
ing in the East that
-
we
you
them and then the dawn appear¬
shot that man." "Fine job, good
shot," said the Captain. "You are
to be commended, my fellow.
I
will report you." And he reached
again for the Luger. Up came the
American soldier, saluted politely
and said, "Captain, I want to tell
you
I have already- killed one
man to get that Luger revolver."
•^Laughter.)
that
dense
so
The Army is having
wonderful
experience in - the
travagantly.
optimistic American who
listens to the radio and reads the
average
a
use
of aircraft for cross-Atlantic
paper, We went away quite sure
that France and Belgium were' travel; in fact, travel all over the
world.
their new liberty ,and
happy in
that/Germany
cracking
was
Every 17 minutes
the' Atlantic
crosses
that the war was nearly over and
up.'
when
Iceland
in
landed
we
and
,
veins to the soldier at the
France and in Belgium...7.7;/;'/' J *' front, my feeling was, "6ive the
Army anything it wants to do the
I don't have a speech today but
<
I want to talk about some of the job it is doing." and the social conditions in
trip,
of this
highlights
of
some
your
The Work of American
that you will feel
impressions that we got and
that you will see how we came to
certain conclusions.
,..'/: -;,
form/ hoping
the
The trip over was,
of j
perhaps, one
Engineers
We moved cm then into Iceland,
there- in a driving rain
something of the ter¬
rible weather that has dogged our
Army's footsteps all winter. 7. We
stopped there but a short time and
getting
and
we
saw
into
on
in
and
London
short
a
the thrills.
I will take just, a
time,, we saw some of the damage.
this trip, We saw that' London- is
shabby
aviation yis,,my industry
and London is tired and nerves
minute to tell you about,
because
and to
it was/a. little prelude
me
in that
Jbat we can expect
coming Jndustry. .We met
New
in
/'We
York.
©ver\ on'
C-54, a truly wonderful plane,
larger than a B-29 in size though
not In weight.
We were briefed
in what to do in case of an acci¬
dent and before
began
we
left,
even
we
America is
realize that
to
fighting a war in which human
life is precious and any material
must»be
/
in order to
wasted
life;
/
-
/>/./
safety devices
save
v#;;
We learned there was
ton of
a
this ship—five
on
terrific burden upon
an
going wholej they have lived
were
four-motored
great
a
a
stretched.
They have imposed
themselves,
economic restriction, and on the
are
of the future
pretty well.
Then
and
we
to it
up
flew
on
to Cherbourg
'something of the wreck¬
age there. I want to mention that
saw
to
praise the extraordinary work
by the American engineers
in applying all the new tricks of
industry to this war. You know
three-quarters to five-sixths of all
the soldiers don't fight. They are
behind the lines unloading trans¬
done
portation, repairing
ting the goods that
bridges/ get¬
build to
we
rubber, boats.
All y%u did was
push them out .the dooft" and when
the soldier at the front.
they hit the water, tmsw inflated,
that 2,500 separate
lights v lighted
and ^everything
started getting ready ftyr you as
you. climbed down.
There was a
radio in the ship which you sim¬
.threw
into
the
water,and when it hit the water, a
light lighted so you wouldn't lose
ply
it in
you
a
the
overboard
dark.
wanted
an
floated
It
aerial,
was
no
wind,
opened
you
box and a.kite flew out.
if
and
If there
opened another
you
of
roof left
ever
balloon.
a
so/out
in; the salt water, put the
the balloon and
the
pipe/oh-
it would
inflate
balloon for you. In case
how to operate
didn'ti-know
radio,,
you
nut the radio
on
you!,
thd
auto¬
told
a
standing.
souare
foot
There was
nothing that could be used when
our engineers landed, and yet in
a few weeks we were unloading
big, one. you couldn't blow it up,
of another box came a
hydrogen generator. You stuck,it
a
There wasn't
mans.
four
came
am
items must be
supplied each soldier—three hun¬
dred kinds of. different ammuni¬
tion; and there at Cherbourg we
saw the first great unloading ef¬
fort in a port completely demol¬
ished and wrecked by the Ger¬
It is
box and out
I
it
times 'as*. much
went
was
great
tonnage as
through the port before
wrecked.
There
were
47
Liberty diners standing off
''unloading, many'; of
"the: harbor
them7 %ere: "ducks.".:
the r"duck";ls both
truck,
it is
one
ventions of this
matic, and it would call SOS and 77 These
a
You
boat
of the
and
a
great in¬
war.
"ducks"
know
waddled
V
give the approximate location in. the railroad tracks down a ramp
vnu found yourself.
Truly out into the bay, swung up against
which
the
application
of scientific d'esaving of life
velnoments, to' the
in this
war
is
one
of the extraor¬
dinary things of this day.
We
left
Washington
%
at
-,
/
night
•
-
has
been
From
the
magnificent.
Cherbourg
beaches
had
and
the
to
on
harbor
lines and there
hundred
the
two
were
German
or
three
just plastered with
airplanes and
gliders,
acres
wrecked
showing the terrific wreckage of
the
where
war
its goods—an
where it piled
up
extraordinary, inge¬
and
start-
a
,
had
troops
landed
behind
the
Germans.
-
On the way up to Paris we saw
the magnificent bombing of the
American
Air
bridge
down.
was
bombs
all
ciently to
Force.
True,
a
Every
lot of
the
all
must
her goods, and also
carry
tools
machine
be
working.
said to
a man
plant,
in
the
told
am
safety
deposit
boxes
of the banks were opened
by the Germans but nothing was
taken.
inventories
Careful
made there.
were
There is every indi¬
cation that the Germans expected
to stay
We set the
franc
a
in France and wanted the
exchange at two cents
50 francs to the dollar.
or
Now, the underworld exchange is
half a cent.
I saw $50 sold for
9,800 francs but an American GI
with
his
$50 gets only 2,500
one-fifth the purchasing
of the German soldier, one-
francs,
fourth
machine tool
you
will take orders
I will pay you well. If
you won't take orders, then I must
take
your
machine
tools
and
transfer them to some plant where
they will be used."
I
pression immediately set in. Also
came
another
deflationary act.
power
"If
a
were
destroyed
Germans; all transporta¬
tion
stopped; The trucks f were
stolen by the Germans
inj their
haste to get out of Franc£ and
Belgium. Unemployment and de¬
the
by
Germans
The
with
the / locomotives
France
from me,
air-borne
British
the
value
actual
So
that
the
of
troops and
our
people over there can't buy
anything and have no money to
money.
This
spend.
our
the
by
which we is¬
guaranteed
money
these francs,
sue,
are
American
Sometime,
when
Government.
the
of
Bank
France presents them, we will pay
dollar
for
every" fifty,
even
a
though francs
cheap and at a
Already the
hoarding the American
guaranteed
franc
and
passing
half
are
cent in France.
a
French
their
are
which
own
do
have
not
guarantee.
7
dropped and they
missed, but every bridge was fi¬
nally destroyed and that way we
brought about this quick turnover
cut off the German
boom that brought apparent pros¬
was
perity to the working classes.
a
under the Germans?" He
were
battle
of
reserves
Normandy.
in the
Flying
to
Paris, I began to observe some¬
thing else that disturbed me—rich
farm lands, cattle, fat horses out
drawing farm wagons, many of
which no longer had those big
picturesque wheels, but rubber
tires under them. I beghn to won¬
der a little about the economy of
'.
France.
Under
France
V
We went
on
;
Occupation
/
in there and I be¬
asking many questions of
I met about the eco¬
gan
everyone
nomic
and
social
conditions
cause
my
first
disillusionment
in that field and I want to
came
tell you a
little bit about it.
We went to the Ritz
big
be¬
looked
Hotel, the
all the
doorknobs and
brass
there.
were
The hotel
well-painted with new silk
- hanging. *
Some of the
curtains
modernistic.
were
rooms
had
I
suffer¬
been told that France
was
ing/that France
stripped of
was
all her food and metal.
told
I had been
ities
by high Government author¬
that every horse and cow
and
sheep: and pig in France was
killed and
unless
'gave her a
hundred thousand tractors to plow
we
more
than
Let's
we
would have to feed her
with,
one
year.
what
see
France;. The
of
goods to
consumer
A
people
the
of
support
and
they
produce
a
fine, conservative Frenchman
I had known for many years told
that if it had gone on a year
and a half more, he believed the
me
French
working
people would
things- as they
were.
They liked it.
Later in
Belgium—this was Confirmed—a
Belgian businessman told me when
have
for
settled
I asked him about
we
have had
has
ness
in
Germans
into
came
gather,
they started under deficit financ¬
ing ' to " build - a consumer boom
They were very polite. They were
extremely anxious to win the sup¬
port, particularly of the working
classes of France.
I was told by
has
been
good." 7 He
extremely anxious to make
her think that they were the best
tenants
she had
The
Germans
ever
had.
but
me
she
established
an
You see, deficit financing,
we
are
financing the
money.
much
as
is
book
which
was
used
marks
pencil
with
war,
is
with
and
in
a
which
exchange
mark, the
the money
an
rate of 50 francs to one
German soldier found his pockets
filled with francs.
He had a large
butter.for
Belgian Government
a
high price and
the Hungarian flour they got in
exchange they sold to the Bel¬
at
under
"Of
course,
lived
we
national humiliation. We
a
a proud people and that is a
hardship."
But
economically,
they were getting on very well.
I said, "What about the cruelty?"
He said, "Ah, Germany was cruel
but only to those who entered the
underground against her.
If a
are
and stayed out of
politics, he
was
treated with great courtesy,
but'if you entered, the-political
underground- against them, you
got things stuck under your- fin¬
gernails or you /were put in a
bathtub of cold water with-your
ness
head
held
tainly,
water,
under
you
all
and
may
bring
"That is not strange
because your General Eisenhower
just announced that he will shoot
anyone who opposes the Amer¬
don't
You can't occuoy an¬
fellow's
other
watch
if
backyard
the
political under¬
"What about the black
in the cities?!'
He said,
market
"There has been
a
food
shortage
in the cities but that has largely,
black
market brought on
by the
French woman, she got a big tip.
When he bought a hotel dinner at
the hotel, a large-tip was paid
again. Money began to turn over
There was a Consumer
rapidly,
Frenchman who has the food
were
©aid.
Take
mans.:
bring¬
the river for the Ger¬
up
When
he
worked
for
the
when
paid
work
very
was
done
liberally.
for
a
by the French and Belgians. The
fuses
to
sell
it
at regular
and
came
I-
tip," and he walked out of
room. /
shoulder-turned where
looked"
we
The hotels made
great
under the Germans.
a
We'fhave "commandeered
throughout
make 1
-many-
France.
with
deal
a
•
the-
We
-
French
Government. They operate at cost
they
*'/
not happy.
are
The French^'Underground? 7v
Another
unfortunate
thing
is
that the underworld worked with
prior to D-Day and was made
largely of Communists, young
us;
up
victs
and
underworld '? ex-con- -
and all the
people who be¬
shooting. Now
gin when there is
the
that
a
is over, this under¬
wonders why we want to-
world
war
disarm: them;. I
German
told that for
was
train
/ that/ was ^
blown up they robbed ten peace¬
ful French families,, so it is. vety
every
difficult to
•
into the country
come
and find your partners are
not the
peoplet you want to be partners
with;now. ..Much of,the stealing;
is due to that.
/•
//■■
When
line
as
we
opened
we
put; in did not
found
our-pipe
up
France/
across
as
>
much gas
come
*
out and
all
along the line the,
tapped the line and
hung a pail under the tap and'
hung out a red horse sign and had
we
French
had
into the gas business.
/
;
One general told me a Quarter¬
gone
master
train
left
of' the stuff
40%
Cherbourg and
it had
on
-
dis¬
appeared when it reached its des¬
tination, r I
tell these things be¬
bring home a story that
disillusioning, that is sordid,
cause
is
I
that is
unhappy.
General
do
.
Gaulle has tried to
de
something about this.
He has
raised the wages and frozen prices
and
that has put all the little
that
businessmen
and
are
in
services
industries that might run-out'
of
business,
so
unemployment
spreads and then comes the rad¬
ical
takes
leader who
everything
The newspapers have been.:
taken over. V ;'■
over.
re¬
Let
me
prices
going
on
tell you
if
you
of
a new
y-j
racket
think it is nice'.
good adminis¬ to be in business in France, fThe
tration to make him, ;so the people nephew of a friend of mine ran •
in
the * cities ; paid/1 extravagant' a ;printing
company/* • .He;/* a*
and
there
was
no
.
.
.
prices for food .ariif;*-suffered
great deal."
•"/'/
a
peaceful citizen in-
Effect of Allied Invasion
,
little bit of a pic¬
ture of Germany for the "first two
There* is
and
a
half
a
to
three
And
and
the
years.
ness;
He
labor*
the captain of a river boat
ing coal
you
ground."
I said,
purchasing power and he went out
and used it.
The result was that
Bonuses
if
her in
she stays out of the underground."
ican Army.
Americans
the Americans and I get
people
gians." He said,
France
thought * France would
be
wildly happy in the new freedom
we
brought and I found a cold
The
butter
in
I 7<
>
and said. 'We will swap
flour.'
sold
been
when his laundry was done
the
the Belgian Government
to
He said to me,
exchange which filled the pockets
of
the
German- soldiers
with
the
on
little
a
and
to
young
were
then
wait
She
come
here
shrugged
his shoulders and said, "I wait on
the German and I get a big tip,
hotels
didn't
brought
Ritz, "What
the
over
deal of money
above
—
the things to make you talk."
•
French woman whoseHe told me that in
1942 he
cottage was taken by the Ger-. courted a British subject, married
mans
that they rented it, they her and asked if he might* bring
kept the gardens up, they painted her and her two daughters into
it, they paid her high rent. They the country.
They said, "Cer¬
a'
like
for facts;
businessman attended to his busi¬
happened
it
normal
been
It
normal.
hardship, "Why,
breakfast at
boom here. Busi¬
a
t
I said to the waiter who
me
said,
"Did
the
Germans
take
things from us?
They bought
things. Germany wanted butter.
came
a
big liner, a sling was swung Germans, he. got 100%
salary
aboard full of goods and back the' bonus. Here we pav double wages
"duck" waddled and over to the and time and a half. The Germans,
railroad siding,
could
away so we
tanks
our
had
and
we
out
go
/trains running and running effi¬
.
went
we
saw
behind
landed
boom.
across
cows
to
the / transportation facilities,
which meant that she wanted the
day.
a
France and from what we
-
Normandy
farmer
a
chase his
me
produce, and they paid well for it;
"
tell them somewhat in a narrative
hire
to
in
landed
we
-stim¬
when
was
Truly
decorations
.
incidents here and there and
the
production
A general told
the planning for this war and the
industrial job- of -getting ready
But
saw
ten great transports of the
A few weeks later we ^returned
same
type
drop
through
the
deeply observed by what we had.
seen1 and very much disillusioned clouds behind us, loaded with life
blood two and a half days from
by what we had seen of the econ-,
©my
the rate of 70 miles
plane
a
OCean.
Farm,
ulated.
lengths of pipe. One soldier can I •, Now,
Germany /• demanded
carry a length and an automatic
three things of the French early
coupling and they can lay it at in the war. All the steel she could
were
next
venirs.
So, this officer was
battle.
few months out of short
a
of ships and the wreckage there,
in great plenty and
and
then flying
towards Paris,
there we stayed while they de-1
across a great field where gliders
cided from the weather what the
things
Father¬
land, the French soldier for glory,
man
deploy
built in
saw
the
//yi/r
258)
page
operation by bur engineers.
the greatest pipe line in
world; tankers up against
wrecked piers pumping oil and
gasoline into a pipe line system
bigger than any in the world, all
We
Thursday, January 18, 1945
over
The
into
got
leaders
a
raise
rushed
ported* him -as
and
he
has
a
been
Tittle- biisi-/trouble with
they wanted.
a
and
over
re¬
collaborationist
in jail
for
two
months trying to prove this was; a
labor case, not' a case of treason.,
then
the war
turned
I called up the manager of a
them,, Americans eaime and our armies
landed. The bridges were bombed; great French business.
His wife
;
'
A k '2 u ?
*
'
■
'.
:
■
•
-
•
^H^c'itwr.'t':r,.
*
*£,*'".
.
5 * jrr'*u"
287
is not home." I said,
It is Fred Crawford
from the States." "Oh," she said,
"He
said,
"I,
am
"his
sorry.
he
expected
me
collaborationist?
a
tell
ness
patriotic
operated your busi¬
expand it,
a
were
you
If you
for the Germans
citizen.
ness
and
rebuilt and put back
laborationist with Germany.
the
in
Lease-Lend
of
tons
We
next
big
if they are
with us.. They are
crying for the nationalization of
three
to
four months
or
industries.
An
amusing
themselves
"Nationalization
and
chinery was putting on soles and
heels.
What did
they use for
soles? Pieces out of tires that had
for
In
everybody
a
saw
general who was
coal barons, or, rather the coal
labor
leaders
of
Belgium,
to
"Please don't strike your mines
until
get enough coal to bring
ammunition up to the
v/e
American
American troops."
1 A high-ranking general said to
me
that
he
the
war
over
could, get
before;.all of
hoped
we
with
Europe fell out from under l?im in
a
civil
Communistic
war'.
'I
am
told that
Norway is as bad
Bel¬
and France.
Whenever a
consumer boom, with high wages
and too much pay for little work
ends suddenly, then you get this
turn to Socialism and the radical
leaders
take
over.
The United
gium
blamed for this depres¬
States is
sion, for unemployment, for lack
of Lease-Lend, for the black mar¬
ket, for everything.
We
home
came
disillusioned
that is to build
in
unity
ing
surprised and
a foundation
what
—
a
happy cooperat¬
Europe
to
shoe
on
the
in
;f^ture! Why can't the American
people get this picture? So, my
4u:st conclusions from my trip
been
had " all
I
forgot
to
was
-
one
them and the
German aviators pierce any arm¬
ored tank
I suppose
is
planned.
»
Jet propulsion
have.
we
*
•*
appearing in
many forms. Gen¬
Eisenhower said, "It is true
eral
if
don't get jet
we
propulsion be¬
fore Germany gets into mass pro¬
duction, we will be at
advantage."
that that de¬
magnificent place
a
that
and
of the difficult things of this Gerdrive. We have to shoot them
say
fensive line is
snowballs
bounced
a
great dis¬
launch
from which to
attack
because
counter¬
a
'
your
,
into use.
learned
We
saw
Take the foot mine.
The third
point I want to make
is enemy morale. You and I again
have been waiting for the home
is
morale
that
if, by some
piles of tires. We saw
boys
welding
and miracle, gasoline could have fallen
out of heaven like manna,
we
patching and doing all kind of
would have gone through to Ber¬
operations and we were proud of
Ordnance and proud of the engi¬ lin and ended the war and that
explains the optimism of that fall
neers and proud of the mechanical
period. Many a general said, "We
job done in this war,
thought we had them." We did.
We
stopped at a little hotel
We had them on the ropes and
which was all cracked up.
One
just as Dempsey hit Tunney and
thing amused me. A sign over my
bed read: "Air raid warning." It put him on the ropes, he was out
for the count of nine, the Ger¬
said, "The air raid warning will
mans were out.
Then extraordi¬
be sounded by the crash of glass
nary things happened that I want
and the bursting of bombs." That
to tell you about, as we got on up
was the notice.
It said, "In due
to General
Bradley's headquar¬
course, we will
have a ring-off
ters.
and let you know it is safe." •
During the period when we had
stopped and consolidated, during
Visit to the Fighting Men
the period when it was impossible
Passing on to General Patton's
to advance, strange things hap¬
headquarters, we had a day with
that very colorful and interesting pened in the German Army and I
want to tell you what they are
fighting man. I was so glad to
spend a day with him. He is a j because the war entirely changed
at that point. We found ourselves
great big fellow. He puts on a
up against a German line seven
great show. He wears his pearl¬
or eight hundred miles long that
's handled
revolvers and big brass
is the strongest defense position in
belt buckle and riding breeches.
all of Europe.
I believe it was
His
idea
is why not look
the
Napoleon who said that Germany
part if you are going to play the
is so easy ? to defend* so hard to
part.. He puts in a dash and esprit
attack.
Unfortunately, our drive
de corps that makes his boys the
ended
at that line.
There are
most loyal in the; Army. Every¬
mountains,
you
know,
in
the:
body wants to be in Patton's brig-:
south, the great Black Forest and
ade.We
through
came
shells
our
man
This
great army, although they are in¬
ferior troops, is quite as strong on
that defensive front as any other.
said,
who
bird
and sewed on a
and get it back
salvage
it
"Court marshal the
responsible for that.
We can get along without food
but we have to have gasoline."
Patton
ripped where a sole
could be put on
of which
off
of
self back at her border.
American
two-star
off to beg the
I
Belgium,
been torn and
cry,
but the Renault works."
room
They
the line with eight inches of armor
they
enormous
Jet propulsion
offers an
inferior astounding field. Picture a little
fighting ship leaving the ground
troops can hold the line, can hold
that great defensive position while and climbing 30,000 feet in one
up
gas
and keep them going. your better trained troops can minute. Take your watch out—it
Finally
that
great
expedition spring out of the woods and on is nearly five miles. Some of them
only fly five minutes but you
stopped
and
its
very
success our side of the line are the rolling
stopped it; that is, its very inabil¬ farms of France and Belgium don't need to fly long at that rate
ity to bring up gasoline. A truck- which are beautiful places to fight right up into the belly of bur aircraft.
load of food arrived and General an attack.
;l;;.
long line where shoe making ma¬
spearhead in this cry, but when
Renault died, he left his plant to
his workers so they suddenly had
reverse
this
that
that
see
from the side to get
;
ten thousand
We had
tanks.
the
to
of tne surprises of tnis re¬
drive.
cent
adiers, who suddenly sprung into
being when Germany found her¬
back
■
•
an
interested
was
was one
like
trucks going around in a circle
trying to get gasoline up and fi¬
nally, at seven hundred miles, a
tank burned up all the gas it could
bring. Then we used P-38 fighters
to use their belly tanks to bring
sizes,, then they went down a
and
thing happened when they were
there. The Renault plant was the
to
pile of shoes half as
and German pris¬
sorting lefts and rights
a
saw
as
oners were
cooperate
their
and
put back into the front.
and
V:
is
and eight-inch armor
the German tanks and I
on
boys and farmers and
old
people and young people,
many of them called Volks Gren¬
it came up to
as
It
on
did
Where
front.
from?
army
tanker to the tanks of our trucks
enemy
of everything are reworked
scraps
,
the French are de¬
manding six and a half million
turned
and
them
expedition
troops
thousand
hundred
eight
come
German
six
plate
today. There are some
arms
western
and
On
we
went,
five
hundred
miles, six hundred miles and, fi¬
nally it became humanly impos¬
sible to get the gasoline from the
rifle, every one of our rifles, all
the clothes, half-burned tents and
Today
south
million
six
under
the Ger¬
as
the
cut the'-flank.
into the lines
Every
time.
short
a
were
roads,
blasted
vaged and rebuilt. Out of the first
105 tanks that came back, 55 were
in
many
air
of the
about
to run out, of manpower.
General Eisenhower told us there
the Air
hastening up the con¬
our
bombers just
up,
every
col¬
trouble with labor, you are a
came
supply truck comes up and un¬
loads, rather than go back empty,
they load it up with all this debris
which is Carried back and sal¬
ex¬
forces,
formed V in
crete
any
on
cooperation
ground
mans
pick up everything they find
oh the battlefield and when the
substantial
amount, you were a collabora¬
tionist. And, lastly, if you get into
to
it
panded
no
to
What
I will
If you operated your busi¬
for the Germans and didn't
you.
debris.
have him
for being a collaborationist.
and
signs of wreckage
is no
Our battalions are trained
are
called
;
the
With
battlefield, iThere
the
on
he
and
Corps to do it for him, and that
was ; an
astounding
maneuver.
-Avi:'^
war.
There
afterwards that
day that radical
in jail
any
would
leaders
is
this
to the 'phone and it Was my
came
friend. He told
flank"
the extraordi¬
mention,
to
salvage job that the Army is
doing. That is something new in
nary
The cousin
is here."
cousin
want
28^
FINANCIAL CHRONICLE
THE COMMERCIAL &
161:. Number 4352 ,y-';-^¥
Volume
_
'
General
crack.
to
is
hower has said there
the
of
this
ingenious
We
war.
indi¬
crack, that the home
today than 18
low's
foot
off.
went
into
the
that every German
today is under tight control with
a
gun at his kidneys doing ex¬
actly what he is told and there
were
cation
of
a
morale
is
months
ago,
better
to be
seems
haven't
heard
Thirty-one
woods
boys
when
we
at Aachen and 16, came
with their legs gone, from*
these nasty little mines planted by
the millions, making it difficult
to advance.
movement under¬
no
of
one
weapons
up
back
General Hodges
said,
"You have got to give me so damn
overthrow this ruling
class and stop this war.
ground
new
enough about it. It is a little plas¬
tic wood mine that blows a fel¬
Eisen¬
no
most
It is
to
shells
many
I
spring
can
those
mines by shell fire instead of send¬
Germany's Supplies and Armor
; The fourth thing I want
tion is enemy materials. I
ing American boys in and doing
it with human flesh."
to men¬
thought
Number
6,
leadership, perhaps
and
the most important of all. When
our drive ended
at this line, all
operating only one-fourth of what
she should operate on with her
air force. She has gone to horse
signs of generalship by intuition
stopped and ceased. An extremely
brilliant leadership appeared and
desperate for ma¬
Germany was
She
terials.
of
short
is
oil
transportation behind the lines. the forces' that were drivepVpack
Take one item, copper.
We said were rearranged with great'; skill
three years ago, "They have no and great speed and they took'.up
copper. : You
can't fight a war their positions on the line.
'^1;
There is evidence that we ,are
without copper." But in the little
town of Spa, not far from the Ger¬ up against the world's best^gen¬
man lines, the old fashioned cop¬
eralship today and you know that
smart generalship with even Jess
per bathtubs are all there just as
can
they have been in the baths. resources
prolong ' p;,,war
Wouldn't an enemy desperate for month after month. What conclu¬
.
that
stolen
have
copper
sions
copper
can
we
long before this if they were des¬
servations?
perate for it?
started,
a
draw from these Ob¬
Thatr
a
war* has
new
u'ew/^ar that presents
the most
blbddy'&hd serious pic¬
And we thought G erpiany was
ture that AWeritan ' troops : have
starving to death;
Not yet are
Abroad are that the time i$ .come
Germans hungry. There are signs.: been faced Hvitniahd for' us Vpmfor {realistic censorship that will
They^nre going to be in( its mountains from Switzerland!
It is getting bad but certainly*the; lttg if6m "a^Bpplaljeht, anjLjppti*
;begin "{;to .♦ tell -.us
the
actual,, Berlin first,is, the belief. Many come
hundred miles, then food that we saw in France and mist'ic home front, it was a serious
-straighi-forward -facts J: abroad. a boy sayS, "That old gink, he can broad up one and
rivers
great forests and Belgium would have been raided blow. It sobered us. We thought
Let's demand the facts. We are slap me on either end and I will
of America where millions of tir¬
bad terrain through which there
long ago if Germany was des¬
fighting to bring a free press to stick with him." (Laughter.)
are only three or four narrow cor¬
perate for food. My fifth point is ing war workers — one million
Germany.
Let's get a little of it
There we began to learn some¬
ridors, not more than forty, fifty resourcefulness. Germans are an people left their war work in the
at home here in America. (Ap¬
thing about what had happened miles
wide, that a modern army extremely capable and ingenious last 90 days in America, the home
plause.)
in France.
It was an interesting
.
can
picture that unfolded, how we had
broken
through
after the
Air
The Supply Accomplishments
;:r
Now,
we
turned our attention to
the schooling and the things that
we were there for.
General Lee
Paris
in
We
an
saw
put
through school.
us
how this job of supplying
is just like civilian life,
army
great wholesale-retail proposi¬
tion.
Shiploads of solid lots ar¬
rive. They must break them down
a
Corps had bombed the bridges and
cut off the German supplies at
Then how a spell of
Normandy.
enabled
weather
good
the
crack
to
Force
Air
our
line
and
through the line went this Amer¬
ican Army raring to go and there
followed
what
General
Eisen¬
hower
calls
of
one
greatest
the
from wholesale warehouses to re¬
military maneuvers of our time in
tail and finally
which these American mechanized
items
a
distribute the 2,500
soldier must have to each
soldier.
It is
the
terrific job.
a
have
been
went
What a job
transportation
All
done.
with
covered
a
France
has
network
of
miles, four hundred miles at a ter¬
They abandoned every¬
thing except their tanks and their
One platoon of Gen¬
ammunition.
Patton's Army left its artil¬
eral
the wires
their food.
world.
down.
were
half
a
hind
ships.
the
directly be¬
built
lines
were
built in
7.500
tons
of
a
a
for
steel
few weeks,
many
than the
was
war
a
job almost bagger
itself.
We
warehouses in the base
were
surprised to
see
saw
one
these
zones.
We
thing I
the
new
war
mountains
and
has begun.
rivers and
natural
Siegfried Line is so
strong that inferior troops on that
line
quite
are
as;
effective
as
trained
troops.
Then until we
this great Army of Volks
drive
Grenadiers out of that strong po¬
sition,
fare
we
the
into
out
open
where
trained and mechanical
our
have
can
have
A
a
war¬
advantage again,
an
terrific job ahead of us.
general
turned
"We can go
corridor to Cologne.
said,
to
and
me
that
through
It is only 40
deep,
It is the most strongly de¬
ammunition.
man
88's
They captured
They picked up every¬
hundred
one
miles
fended
place in the world."
said,, "I
can go through, but I will
hundred thousand Amer¬
thing
leave
resourcefulness.
ican boys
two
along the way with great
They
captured
hundred pounds of Argentine
up
that get
a
ne'a^'.Verdun. How did
there?" I thought
blockade on.'
I
am
told
we
you
had
can't
keep beef four years that way.
must
have
through
brought
been
our
blockade.
know much about
this
It
right
We don't
war.
This drive went on and finally
of them very
large,, and the revitalizing of the
.railroads
These
a
has
war
wide.
twenty
each
ended and
one
miles
German
captured
pursuit beef
shipped from
airport. Every
bridge was down. Our engineers
built four hundred bridges in just
America
that
consider
can
and
and
few weeks with
mechanical
point one: The terrain
has changed the whole war. It is
a
situation so startling that we
so,
finished that drive shooting Ger¬
lery,
the
for
hundred
One
the
that the air¬
We learned
ports must be
That is one
around
times
miles, three hundred
rific rate.
telephone,
teletype,
radio
and
jeep messengers. We saw 30 jeeps
that had done 35,000 miles in six
days delivering messages Where
and
miles,
hundred
one
two hundred
engineers and
men
forces
through.
go
And,
a
in that 40 miles."
said! "I can't do it that way.
are
committed
to
a
war
of
He
He
We
the
saving of lives and the use of ma¬
terial.
You have got to give me
such. Unprecedented quantities of
shells -that
we
can
blow
every
yard of that territory to
pieces and advance without such
a terrific loss of life." and there,
square
gentlemen, is your shell story.
Now,
the
second
thing that
force traveling.
General Pattnnt makes that a new war of the ter¬
abandoned his right • flank.
He rain is the enemy strength. You
it
became
.
almost
impossible
to
.
.
supply gasoline to this mechanized
said.
"I
cai\'t wait to protect my
and I have been waiting for Ger-
of
been belittled.
into
minutes
were
there
one
were
there
coming
overhead
almost
feel
just
if
could reach them. They are
like sputtering motorcycles. They
are a little airplane with a ton of
explosive and on top a thing thai
looks like a black cannon spitting
out ten feet* of flame behind ii
you
going bang, bang, bang, with
such repercussion that loose win¬
dow
panes
below
are
often
cracked from the vibrations. They
and
are
accurate
within
raise
the
hell with
to. drop
enough
area
of
city.J They
a
class
and
the
won't work
while they are
^
we
on over
!! i:
front.
Over-Optimism
of
short-lived,
a
optimistic
wouldn't last
that
out?
people
And we
read at home here how managersand workers alike read the paper
and
run
the home front by intui¬
tion, question every order. When¬
the needs of
ever
all
we
know
who
changed,
and wantto
a mistake, hot
war are
bellyache
made
realizing that the requirements of
war are dictated by enemy deci¬
sion, by terrain, by the fortunes of
war as it develops.
v v5
civilian .pop¬
the civilian laboring
the
because
going
Didn't Germany count on this?
Didn't she tell us that we were
.
ulation
at
Danger
ten
as
degenerating
don't know what is
when we
city
going
You
feet.
700
They
at the rate of one every
over
front
sign
no
that have
bombs
V-l
the
Take
There is
race.
of this ingenuity lagging.
any
^
r.
Q
Censorship
Let's cut out running
> i
;
the home
front by intuition. You asked jne
;
how long the war will last and I
V-2, that ^extraordi¬
■will tell: you what an American
nary rocket that-goes way up into
high general answered to that
the stratosphereorrf an, extraordi¬
question. ; "We can sit before this
nary development, Americans said,
it couldn't be done., A- ton of ex-' line, one month, two months, six
months, nine months, 12 months,
plosive put on top of this rocket
and there we can sit until we are
which leaves the ground. You jus*
willing to spend an enormous
set it up on its tail and away it
quantity of human life, or enor¬
goes: in 58 seconds its propulsion
mous auantities of war material,
is all over and it is lost in the
and while we sit there defensively
stratosphere
and
four
minute-?
waiting and deciding what to do,
later it is down in some city two
^waiting to get our shells, the
hundred miles away and its work
Germans are in a beautiful posi¬
coming in.
Take
;7'f\
the
-
is
p11
field
done.
of
While
It
onens
possibilities.
we were
up
»
a
whole
A
.
.
there,
we
tion
to
run
these
counterattacks
.
heard
(Conitnued on page 286)
THE COMMERCIAL & FINANCIAL CHRONICLE
286
gun?"
thrusts
and
out
is is
their
bright spot in the war.
cause
told this?
days
before;
bright' American
girls, all mud up to their knees,
operating 24 hours a day, right
within distance of gunfire from
Why don't they get this
picture? What is the matter with
the censorship which keeps us in
semi-ignorance?
Why don't we
have the truth and realism?
American
people
they are in
facts, there
would
left
she
Paris
and
I
said
here."
these
50
that the Americans
told the little
the
Picture the top
or
rose
must only be
of
a
hill,
an
air¬
port in which steel is laid down
farmland and the mud is ooz¬
on
through the holes In it.
Picture 55 great DC-3's, the air¬
plane .that
you
know in
our
transports working at home, lined
up nose to tail, and up the hill
comes a thousand men in litters,
ing
in
Pollyanna stuff."
aircraft.
the
is
conference in
to
man
-
that
war
greatest ambulance ever invented
and
pounded the desk and said, "Don't
you blame us. It is that damn idea
Every
this
in
discovered
-
stuff but I got no such pic¬
at home
as
I am
getting
ture
taken
to a great airport. We saw a
sight that thrilled me.
We have
matter
your
we were
over
correspondents, "What is the
with you fellows?
I read
more
they all were using
developments that
people. Then
save
Labor
month.
last
would do its part.
We had a press
scientific
mud 60
been
produced to kill people with to
we
adversity.
would be no man¬
problem
today.
Mothergo back
into the factory
power
that
the
tents
under
beds
that had
field
a
the front. Then
The
when
With the
best
are
thousand
A
in
up
ambulances, four in an ambul¬
six ambulances backing up
an airplane,
twenty-four boys
Very quickly let me give you a
few incidents of our trip from
there to the front.
We left Gen¬
ance,
Bradley and went up to see
these
eral
General
Hodges, who took us up
front.
the
to
launched.
'cCfme
We
V-2
a
saw
don't
You
them
see
and few people see
them go up, because it is all over
in 58 seconds, but standing at the
roadside looking toward the Ger¬
man
line suddenly a column of
vapor rose slowly and faster and
right off disappeared into the blue
down,
and another one of those strange
to
loaded in ten minutes into one of
great
transport
carriers.
There is a nurse on there, a med¬
ical
man
them
on
in
there to take
their
flight
care
of
England.
to
In less than three hours
sand
one
thou¬
evacuated from
the horrors of that front, and in a
hundred
and
twenty
minutes
dropped down into warm, com¬
fortable beds in England.
There
has never been anything like that
in the world. It opens a little pre¬
boys
were
had been fired maybe 12 view to what is going to come
heads after this war when we turn our
at some city behind the line.
good
^ : scientific developments to
We spent several nights at a lit¬ rather than to killing. I was proud
tle town at the front with the V of the medical corps and the work
bombs going over every few min¬ it is doing and proud of our air¬
utes, giving us an idea of what a craft industry at the sight.
15 miles away over our
dirty,
killing, vicious, fiendish
thing war is. We began to learn
again, to see some of the things
we learned about.
General Hodges
met us; a quiet man,
all surround¬
He told us
the difficulty with the weather.
The worst weather they have had
in 50 years, bombing only a few
ed
by organization.
times
a
week instead of two out
of three times, depending upon
heavy shell fire rather than bomb¬
ing close to the trooops because
too many bombs have fallen on
our own lines.
You see, it is not
all
happy in this war.
We went
up to Aachen.
What a city it was,
a completely wrecked city.
Let me
tell you what happened there/be¬
cause it again answers the
shell
question. ■ Our Army stood before
Aachen, they surrounded the city.
A young American with a white
flag and jeep went down into the
city and said, "You are licked.
You better surrender
pull out."
enemy
would
Any, reasonable
or
have
pulled out, but word came
back from headquarters in Ger¬
many, "Delay them a week; delay
them a day, an hour; give us time
to set up this new war that we are
planning. Hold the city." And so
our generals were faced with that
old
decision,
shells.
American life
pick. And
Take your
or
we
We
caught another interesting
the way.
We saw psycho¬
logical warfare called hog calling.
Every army has it. They have a
big truck all fixed up with every¬
thing for talking to the enemy,
and -an ex-German gets on the
radio and tells the German boys
if they surrender we will take
care of them.
That was very in¬
teresting to me.
I must pass on,
one
on
however.
the
fireworks
display of
flak going up,
We saw a German
fly over us and drop his bomb
behind
us,
and then the
flak
chased him back, and we came to
a little story I want to tell.
We
to
came
sition.
240-millimeter gun po¬
a
Army
because it filled me with con¬
and
pride in the stuff
that is in the American boys.
If
you picture coming up a road all
mud, turning off a little old stone
farmhouse, a hollow down here
and under camouflage a great tenfidence
howitzer and
shell
est
has
fire
been
ever
in
the
that
on
fired
world
on
dred
spot
before.
any
probably
Three hundred thousand
that
city
one
hun¬
and
fifty-five millimeters
put on- one part of that
city, and when that barrage lifted,
were
few
a
American
there and found
a
boys
went
dazed and
in
dying
little loss of life; and
took the city, but it used up
enemy.; very
we
stock
our
and
reserve
of
shells.
over
here
the
truck that pulls it and hidden be¬
hind the barn was the carrier with
rubber tires
that hauls the damn
All around
hay
you
couldn't walk
anywhere without going in up to
your knees.
The walks are just
hay laid on the ground.
We got
out
35
of
our
cars
and
was
outran about
American boys, and
they were
all bright-eyed and eager.
They
were
dressed
in
open
collars,
some
with boots on, some with
overshoes, some with hats, some
withouWjust a lively bunch of
American '• boys
recruited
right
over
here in Brooklyn.
The ser¬
big, tall Italian, and
What used them up? Not our de¬
geant
cision,. but. the enemy's decision,
and that is why in this war we
there were short and tall and fat
and thin boys.
They were full of
must be flexible
wisecracks.
and
on
the home front
change our production to
they need depending
see
the decisions of the
from
whatever
upon
enemy.
We
!
went
on
from
Aachen,
where we saw the hell of the foot
mines, to
me
a hospital position.
Let
quickly tell you that story, be-
a
-y.".":;
They gathered around
us.
"How
War Wounded and Ilospitilization
was
we
to
home
ram
the
shell.
came
Picture
the front, pick one out and
this is the last attack and the war:
and
is
talk with him
and how
invariably the conversation
"the
spiritual,"
thinking
the gun
said
and out the
Then
nose.
they aimed the gun and the order
came to fire that shell, and it was
away at a target 12 miles away, a
bridge behind the German lines.
Then
they gathered around
and
we
get
us
good
talked to
over, quite ignorant of
bombshelling that is on in
Europe and the war that our boys
them.
"Do you
worry
General
Eisenhower,
'
frankness and truth in
ship
"just
this
sordid
away
and
down
grasp of the sit¬
We thank God the Amer¬
and
all
war
on
.
uation.
we
came
ican boys are in the hands of men
of character and
understanding.
thought
back
the
of
picture; to travel
this
land
that
men
and
tell
America
up
you
has
a
its hands and it is time to
re-enlist
in
that
and
war
it
get
with. Thank you, gentlemen.
over
home
our .censor¬
American people can get
so
(Standing applause.)
French Chamber Says Gfawford Errs oil France
Jean
Ravaud, President of the French Chamber of Commerce of
States, Inc., in a letter sent on Jan. 8 to Frederick C.
Crawford, former President of the National Association of Manufac¬
United
most
in; the
trying to get into
a postwar discussion.
I said, "Fel¬
lows, what do you want more than
anything in the world?" They all
Commerce of the State of New York, had
"deeply shocked" members of the French Cabinet, according to the
New York "Times"
on
Jan.
9,^—■ ■
■—
said
"To fire that goddam gun."
(Laughter:) I said, "Sure, fellows,
from which
I know that.
fine
you
world?"
I
doing
are
want
is over there;
letting him down.
about the soldier,"
So gentlemen,
impressed by his
the
thing
he
"Don't
gather around
What is the
stuff that is left in our enemy.
assurance
not
are
back him up."
We
now.
know
we
fighting, quite ignorant of the
We
solemnly
pledged
ourselves
to
come home, to bring you this mes¬
sage, ? to
demand
realism
and
are
the boy is
for
about
the
comes
call it what you
or
hungrily
we
that
food,
boys?"
"Sure."
Then a little, pink-faced lad said,
"Yes, we get bundles from home."
And they all laughed.
You won¬
der what the
American
boy is
thinking about.
I said, "Fellows,
was
That is great.
You
job, but what is
the second most important thing
in the world?
You see, here at
home we are great people
for
trying to think what the other
your
fellow is thinking about and neg¬
lect
our
own
thinking.
What
is
the most important thing next to
that?"
They said, "We want to
know what the hell we are shoot¬
I
said, "That is good.
good soldiers.
to
third
most
You
are
Let's get on
Fine.
What
argument.
my
important
the
is
thing
you
want?"
"Well," they said,; "v/e
telephone back and
we hit the damn target."
(Laughter.)
want them to
tell
turers, said that Mr. Crawford's remarks about France made
before
the
Chamber
also quote:
we
"Regarding
conservative
"Your misstatement that France
statement,
your
Frenchman
Just
brezzy, bright American
boys. Yes,, concerned about recon¬
version talk, concerned about this
working people would
for
things
they,
* as
home, to get out
industry into the soft jobs.
Somebody, told
me
today
105
women in a war factory had their
work changed and 88 went home
because they said the end of the
has
We
going back
the hair-dressing shop.
Yes,
they are concerned about that.
They told us a reconversion story.
They said that they had a colored
boy driving a gas truck. He heard
all about this home reconversion,
come.
he
sold his
and uniform
are
truck
for
it into
beat
and
his
million
a
Paris to
gas
francs
get
re¬
converted.
up
time to leave, one
not only makes your statement an
make
Mr.
sentiments
of
remark
a
Crawford,
big roll
We were in Germany,
Durik. He peeled off
Just to close,
quickly to Paris.
dinner and
a
came
back
We had a nice
long visit with Gen¬
we
Eisenhower.
He
told
us
his
plans.
He told us of the horrors
of D-Day.
He told us of those
six days when we didn't know if
could hold
shores
of
a
foothold
We
France.,
on
were
the
im¬
his seriousness,- his
the - job determination
pressed
by
stick
-
and
to
his
emy.
job of crushing the en¬
He says, "lam just going to
crush that enemy
done."
;
■"
.
We
saw
General
than
great
insult
could
this
nature.
friend is not
your
"You speak
truth, but discredits
'
,
v
r
"Your
disparaging references to
the
French
underground
have
afoused the indignation of people
\
;
about the prosperity
of France under German rule.
to the
ican lives.
As
everywhere
business man, you should know
that inflation in any form always
who
know
of
the
achievements
of
the
a
has
the
feigned
prosperity.
wonderful
underground movement in France
of
appearance
during the German occupation."
TheBretton Woods
and my work is
Versus Alternatives
in faith,"2*)
It is
venture in faith
a
partment.22 This department could
which will succeed if the Bank is
be
given competent and independent
mittee
of
management.
It is a venture in
faith which will succeed if the
would
stand
Bank
Bank
is free from log-rolling po¬
litical influences.
It is a venture
bilization loans.
in
country can
accept if it is convinced that the
riod of time and should be
United
put
faith
which
Nations
will
be
this
find
for
political co-operation in the
postwar period and if it is con¬
vinced, that trade barriers will be
If
borrowed.
From
Eisenhower's
lives.
needs
He
told
ahead
work
us
for
tion
of
international
an
organization
and
of
is
the
material.
financial
of
definite pe¬
a
house in
order.
the
Besides
use.
facilitating sta¬
serve
a very
use¬
in
function
gathering inter¬
monetary data, in mak¬
national
ing studies
re¬
credit and
on
mone¬
tary problems and in providing a
meeting place for central bankers
to discuss
the Interna¬
terest.
logically follow
in the Articles of Agreement of
the Bank and still other changes
problems of- mutual in¬
;
:
■
-
*
-
-
changes
Alternative
Articles..
All
Fund
the
to
Bank
Woods
linking
sections
would
to
The' alternative
should be made to improve those
the
its
partment could
tional Monetary Fund is rejected,
certain
Such loans would
over
thought
ful
duction of trade barriers.
If the proposal for
which
bilization loans, the proposed de¬
security
general
a
amortized
own
log¬
a
com¬
a
bankers
advisable, a definite
paid-in capital of
the Bank, could be assigned to the
stabilization department for
its
trade will rise to high levels and
borrowers will be enabled to re¬
pay sums
central
ready to advise the
specific requests for sta¬
on
amount
international
that
so
under the direction of
granted
only if the borrowing nation had
basis
a
proposal
the
Fund
the
to
for
an
'
.
Bretton
Interna¬
tional Monetary Fund is not chaos.
be
The Fund itself offers
no
solution
The
eliminated.
capital
sub¬ to
interpational monetary prob¬
scriptions to the Bank's own loan lems. An alternative approach to
fund (Article II, Section 7 (i)), the
question of international ex¬
which now may be paid largely
change instability would attempt
in local currencies, might take the
to solve the basic problems' left
form exclusively of gold or Unit¬ untouched
by the Fund and to
ed
States dollars.
This change
provide solutions which, in the
would not involve undue hardship
light of past experience,; would
on
nations 21
member
constitute
faith in the
thermore,
free
-
new
the
lend
to
and
acid
an
at
would
of
prove
their
enterprise.
Fur¬
test
Bank
its
should
.
all
currencies
should
be
Still
another
recently
by
change,
Professor
i
free
•
of
exchange stabilization loan de-
the Fund.
The
an
Fund,
tions
immediate
international
ference
as
to
consider
as un¬
erences
:
etary Plans:
such
con¬
ques¬
barriers, import
and quotas, pref¬
and
v 22 Williams,-John H.
eign
convening
trade
tariff
prohibitions
20 Feis,
payments to
national Monetary
2.
Williams,
Herbert. "The Sinews of Peace."
New
York:
Harper and
Brothers, Pub¬
lishers, 1944, Chapter 17.
21 Particularly as member nations would
hot have to- meet their gold and dollar
^
1. The rejection of the Inter-
workable and unsound.
proposed
provides for the establishment of
an
embodying
program,
prise the following steps:
of the currencies it possesses and
such
a
the suggestions of many critics of
the Monetary Fund, would com¬
be
discretion
long-lasting.
Such
from all controls and restrictions.
V",
;
all of this Communistic
Proposals
(Continued from page 283)
the Bank would follow the adop¬
a
said,
"Tain't
no
good.
Hey,
buddy,
when you go through Indianapolis,
have a drink on me!" (Laughter).
Don't worry about the Ameri¬
can
soldier. Don't' worry
about
what he is thinking about.
Let's
get our home front back on the
job again so that the doughboy
doesn't worry about us.
-
by the French to
troops
the sacrifice of French and Amer¬
patriotic
ical point of view the proposal for
out
50-mark from the roll and
we
given
Allied
during
the
triumphant days of the liberation
were,'"
of
pulled
near
eral
welcome
the
true
removed
came
fat, pink-cheeked fellows
Germany.
a
invasion
American
a cold shoulder' must surely
delight the criminals of Berlin.
The
and
enthusiastic
patriotic
Mr. Ravaud, "we refuse to
believe that any Frenchman with
We pay them in marks in
and
marks.
up
the
with
wrote
of
and
I
have set¬
damn scramble at
so
greeted
if
us
war
*A
had known for years told me that
if it had gone on a year and a
naif more, ne believed the French
tled
Jan. 4
on
of
French.
ing at."
done in the Army, but he said, "I
will stick to my job and get it
done."
He reaffirmed the pledge
to fight a war of material rather
day."
"Hell, ain't it?"
"Why
don't they let us fire the damn
front where everybody is so sure
that Germany is cracking up and
the
walk
that
things at home?" "Sure,
doing a job."
"Yes, we
have been here five weeks." "No,
we
can only fire three shells a.
in
likes to
go to
six of them on this long pole and
they shoved that shell in until I
thought it was going right through
unhappiness, this hatred, all the
problems of this war begin when
are
pride
How he
may—in other words,
The order
so glad to
"So you came all the way
America.". "Great
stuff."
are
his
boy.
with fascination..
from Indianapolis came waddling
you
fighting the war to preserve thing around.
life,; and so we started the great¬ laid so that
are
Morale
of
us
to what General Eisenhower called
of these
I want to leave this story with
inch
were
told
shells, the powder, and boys
.sighting the gun.
We watched
When it
'/;/
I
They j.umped to
Over here
to
-
During this trip we saw our
planes go over the German lines
with
positions.
the
things
or
electrified.
were
keep us al¬
ways off center there."
Why aren't the American people
a
American
Just
breezy
American
Then the order came, "Pre¬
to fire the gun."
This bunch
pare
(Continued from page 285)
and
He
boys.
from the War Front'-
Thursday, January 18/ 1945
discriminations,
"International Mon¬
After Bretton Woods."
Ajjairs, October, 1944.
For¬
Volume
287
FINANCIAL CHRONICLE
THE COMMERCIAL &
Number 4352
161
awarded
Issue
power in the postwar period,
prohibitions and taxes,
are to exercise a stabilizing inexport and domestic subsidies,
..fluence on international ecostate trading monopolies, simpli¬
7'..77;
OFFERINGS
fication of customs procedures, ;
nomic relationships.
AMERICAN PHENOLIC CORP. has filed
We will not prove a stabilizunfair
competition,
interna¬
a registration statement for $1,500,000 5%
tional cartels, double taxation V ing influence if we are to fol¬
15-year convertible sinking
fund deben¬
tures due
in 1959 and 345,000 shares of
low recent advice and export
and the equitable treatment of
The common
7 capital for the purpose of main¬ common, par $1 per share.
foreign capital.23
'
•>
stock is issued and outstanding and will
taining the present volume of be sold for the account of Arthur J.
Only if a constructive solu¬
export trade, which, according Schmitt, President and Director. Company
tion is found for these different
will use proceeds of debentures for working
to advocates of this policy, must
problems 7 will
international
Flotations
Calendar Of New Security
export
banking
a
97J/a.
to
development of company's peacetime busi¬
ness.
The underwriting group is headed
,
to
18
Dec.
headed by Alex. Brown & Sons at
The SEC on Dec. 21, 1944, refused
release jurisdiction over the issuance,
group
the Commission was not
competitive conditions had
that
declaring
that
satisfied
'
by Merrill Lynch, Pierce, Fenner & Beane.
Filed Dec. 23, 1944. Details in "Chronicle,"
jjjin ■ 4 1945,
...
Offered Jan. 16, 1945 at $97.50 per share
'
maintained, if we are to experience full employment.
Capital exports should never
be
if
barriers to international trade
are
removed will nations be
trade
Only
stimulated.
be
ish
exchange
postwar
Brit¬
problem.
the
of
This
-
problem is crucial and must be
solved, if a multilateral system
payments. is to be revived
and exchange controls
elimi¬
of
;
Foreign dollar loans
.
To assist in its solution,
nated.
dnded
to
give .a substantial
grant-in-aid to Britain, totaling
perhaps $3,000,000,000, for, the
purpose of financing her pas¬
sive balance of payments during
the transition period,24
;
f account should
pared
,
■:
as
dis¬
foreign borrowers a great
service.
The
of
formulation
con¬
a
lending policy
would give fullest scope to the
private market and to private
lending institutions.
Public
funds should not be extended,
where
private funds can be
made
available. Public, funds
should be used so.lely to meet
marginal credit requirements.
structive foreign
Fund
foreign
Private
anti-democratic and
"a dictatorship of the
is to render our
in this country
have
dubbed the "key-currency" ap¬
as
To look
capital accumulation.
The advocates of the Interna¬
proach
capacity
nation for pro¬
foreign
upon, capital exports as a means
of maintaining full employment
"key-currencies" initiated the
great currency depreciations of
the Thirties so they, must lea<ji
the way back to currency sta-
Monetary
the
ductive utilization of the funds
borrowed. They should supple¬
ment and not supplant domestic
first, if the world is to return
to stable exchanges. Just as the
tional
.
lending,
Any
the
\
in¬
balances of payments.
...
towards international
monetary stability, the United
States would cancel World War
could ac-
cept membership in the International Bank for Reconstruc¬
tion and Development, follow¬
;
•
successful termination of
the trade conference and a solution
of the British
exchange
problem. As suggested earlier
ing
;
a
be amended
in order to require that pay¬
ments
on
account of paid-in
its charted should
capital take the form entirely of
gold or dollars, that all gold and
possessed
currencies
Bank
be free of exchange con¬
International
Reconstruction
for
and
Report
the
from
of
the
Economic
24 Aldrich
Advisory
Winthrop
of
Amer'can
An
address before The
Chicago,
Committee
Committee
on
on
Interna¬
1944.
"Some Aspects
W.
Economic
Fore'on
September
Policy."
Executives' Club of
15,
1944.
«'
27,
registration statement for 50,000 shares of
80-cent
cumulative
dividend
preferred
$5 per share.
As to 25,000
being offered the public the of¬
fering price is $10 per share, and as to
25,000
shares
being offered New
York
Merchandise Co., Inc., the price is $8.75
stock,
par
shares
eral
Chicago at $10 per share.
with
those of
Export-Import Bank and
:
of
Bank are so
seem
able
regis¬
a
statemerttfor 20,000 shares of $5
tration
preferred stock (no par).
The
net proceeds wiil be applied to $1,600,000
outstanding promissory notes dated May 1,
1944, payable to banks.
This amount was
cumulative
nancing
tion
the
assist
to
production
war
corporation
fi¬
and the termina¬
The balance
thereof.
in
of the proceeds
funds and may
be used in connection with conversion from
wartime to peacetime operations and the
will
general
added .to
be
lem ihvolves<the checking of in¬
ternal
inflation,
removal
the
all
credit
requirements which cannot be
met privately until more normal,
conditions reassert themselves.
7
7
7. One of the
greatest contri-
country can
7make in the postwar period to
•
v
butions which this
world
stability is to
dollar in which other
of
plete
confidence.
To
inspire
dollar must
free of foreign exchange con-
such confidence, the
Napoleonic wars nor af¬
World War. To be
aware
of the difficulties of. the
problem, however, constitutes the
first step in its solution. The probafter the
ter
the
make
towards
many
important
an
contribution
solution
the
these
of
questions. Our greatest con¬
tribution
will
consist
the
in
es¬
tablishment of a dollar of unques¬
tioned
strength and in
in our tariff1 rates.
reduction
tial
substan¬
a
currency
provide a
trading nations can have com¬
first
in
of
ratio
tered
of
held
into
'
record.
with
O.,
has
the
en¬
A.
M.
purchase 1
to
investment
for
account
share
per
Company
Cleveland,
of
own
$29
share for each
a
agreement
an
Co.
its
for
at
100/583rds of
share
Hanna
stock
common
of
73,268
rights to subscribe to
1944,
27,
shares
pur¬
all of the 73,208 shares, or such
poses only
part thereof
as
stockholders,
at
shall not be purchased by
the same price at which
they are being offered to the stockholders.
Net
proceeds will be used to provide addi*
in the developments which it is
expected will take place In the plastics and
OF OFFERING
DATES
industries
chejmical
UNDETERMINED
Filed
peace.
4,
return
of
Details
in
the
upon
27,. 1944.
Dec.
"Chronicle," Jan.
We present below a list of lssuee
registration statements were filed
twenty
offering
Speculative Potentialities 7
Boston & Maine
offer
1970
Income iVzS of
potentiali¬
interesting
issued
Baird & Reuss,
ties, according to a circular
McLaughlin,
by
New York City,
members of the New York Stock
Wall
One
St.,
Exchange. Conies of this
may
circular
be had from the firm upon
request.. 7:
■
.
7
-77
7; 7"77
Interesting Situations
Public
National
Bank
& Trust
Co. of¬
situations accord¬
Co. and National Radiator
fer
interesting
ing to analyses prepared by C. E.
Unterberg & Co., 61 Brbadway,
New York City. Copies of these
analyses are available for dealers
only on request to C. E. Unterberg
& Co.
'M-V'J i
days or* more ago, but
dates have not been
'i:»v
to
unknown
mined
or
ALVA
PUBLIC
are
us.
whose
deter¬
:X'\
EDWARD
1945.
filed
has
CO.
a
ELEVATOR
TERMINAL
statement for
registration
used
10-year 6% subordinated sinking
due 1954.
Proceeds will be
for the purchase of the real estate
and
the
$250,000
notes,
fund
bushel elevator, with a
house.,
be
To
community who
construction of the grain
Filed Aug. 8, 1944. 7;>
;; 7:
interested in
elevator.
to
163
of
an
common
Jan.
administrative and
its
and
officers
scribe to
employees
to
-
sub¬
stock,
to
300
three million bushel
offered
mainly to
one
registration statement for
issued by the company on
were
1944,
executive
The
people in the Alva, Okla.,
are
3,
share,
a
a
297,500 shares of common stock, (no par),
The shares registered are to cover options
million
of
construction
MANUFACTURING
G., BUDD
has filed
CO.
which
trade,
international
bariiersto
the £ International basis, of foreign long-term credits.
large that it would, The United States can and must
meet
Dec.
ticipate
head
.
to
statement
tional funds to enable the company to par¬
7'
has filed
CO.
the
powers
.
other
CHEMICALS,
&
registration
a
shares of common stock, par $5.
Company is granting to holders of its com¬
mon
stock of record at close of business
for 73.208
whose
WEATHERHEAD
changer
,
of
and
S-2..,(l-10-44)i,v-:^;7:—7/7r./.r:::;j;
share.
Proceeds will be used for gen¬
corporate purposes.
Filed Oct. 24,
Details in "Chronicle," Nov 2, 1944.
solving,.of, the British ex¬
/problem, caring for the
other
governmental agencies; needs of the transition period and
The
lending
and
guarantee the extension, on a conservative
:
Proceeds—Expected
cations
1944.
the
be
Pol'cy, June 28.
Dec.
UNIVERSAL CAMERA CORP. has filed ft
Development
'
exchange
Economics
tional
-
by " the
policy
and that
7 trois, must: be redeemable in
stabilization loan
7 gold and its quality must not be
department be added.
* u
further impaired by a postwar
6.
Still another - step to be
continuation of deficit financ-7
taken
by the United
States,
ing./
.;'
7 77:7'.'::v:
,
closely related to the previous
The road,tback to sound cur¬
one, is the formulation of a conrencies and to stable exchange
structiVe
and
well-integrated
rates, following the termination
foreign lending policy. This is
of
hostilities,
is
fraught with
essential if we, as the creditor
nation
of
greatest
potential many difficulties. We must not
expect the problem to be quickly
23 See "World Trade and Employment."
solved. It was not quickly solved
an
7
,
and restrictions,
trols
;
Bank
the
of
activities
1
7:,;.; 5. The United States
con-
a
directly or indirectly
and to; integrate the projected
treatment
v;;
Filed
group..
Details in "Chronicle," Jan. 4, 1945.
1944.
to be used in the
additional flight, communi¬
equipment, the con¬
struction
of
hangars,
the
purchase of
machinery, and other facilities in connec¬
tion with its present routes, and such new
routes as may
hereafter be acquired or
participated in by the company.
Underwriting-—Courts & Co., Atlanta,
Ga.,
is
the
principal underwriter,
with
names of others to be filed by amendment.
Registration Statement No. 2-5562. Form
:
acquisition
loaned
,
of Lend-Lease
given in World War
assistance
ii,
of
public funds to be
amount -of
repeal the Johnson Act
of 1934 and stand ready to acin the settlement
formulation
The
would also strive to budget the
;
I debts,
cord a very generous
underwriting
the
borrowed
structive foreign lending
■
further important con¬
tribution
balance of proceeds will be adefed to
general funds of the company. Lehman
and Glore, Forgan & Co. head
7 Offered Jan. 16 by Floyd D. Cerf Co.,
_
a
preferred.
4V2%
Brothers
lar type
change, and there are many in
class, to link their curreneies
to the two "key-cur¬
4. As
the
of capital export which
is employed most productively
from the point of view of debtor
nations and which has adjusted
itself most readily to changes
in economic conditions and in
by
rencies." t
for
dividends
accrued
pub¬
filed
has
INC.,
Offering—The offering price to the
lic will be filed by amendment.
PLASTICS
DUREZ
mail
Business—Air carrier of passengers,
.
and express.
per
each
■
and
par,
perience has demons*rated that
direct investment is the particu¬
*
"key*nations."
The
stabilization
of
the
dollarpound rate will enable those na¬
tions possessing dollar exchange
and those possessing sterling ex¬
action
of
dends for the 4(4 %
direct investment, since past ex¬
,
has
Company
proceeds from such sale will be applied in
part to the redemption of any such un¬
exchanged shares.
The redemption price
of old preferred stock
will be $110 per
share plus accrued dividends.
Filed Dec.
28, .1944,
Details in "Chronicle,," Jan. 4,
Holders of out¬
standing 6V2% cumulative preferred stock
will be given the opportunity to exchange
preferred stock (par $100).
March,
suitable political and economic
two: countries."
This- attitude ignores the basic 1 environments are created. Every
effort should be made to revive
problems involved in currency
Stability and ignores the -fact
that postwar currency stability
like political stability rests upon
registration statement for $17,-
a
500,000 first mortgage bonds, 3Va ch series
due 1974, and 50,000 shares of cumulative
preferred stocks are to be redeemed in
1945, at $104 per-share and divi¬
preferred and $107 and
old
cluding direct investment, will
revive in the postwar period if
world's
THURSDAY, JAN. 25
SOUTHWESTERN PUBLIC SERVICE CO.
has filed
for
share
a
on
adjustment.
,
by
finances
cash
the shares of old preferred stock for shares
of
new
preferred on a share for share
1945.
7
subscription rights for like basis.
Consummation of the exchange is
amount.
Company is offering to holders
subject to the authorization of the new
COASTAL TERMINALS, INC. has filed
of common stock of record Jan. 15 rights
preferred by common stockholders, pur¬ a registration statement for 25,000 shares
to subscribe for 199,847 shares of preferred
chase by the underwriters of the $17,500,of common stock (par $10).
Proceeds will
stock at $105.50 per share at the ratio of
000 new V/*%. bonds and of such shares
be used for -the acquisition of land, equip¬
one share of preferi-ed for each five shares
of new preferred as are not Issued in ex¬
ment and for working capital.
Price to
of common stock held.
Subscription rights
change for old preferred.
Net proceeds public $10 per share.
Not underwritten.
will expire at 3 p.m. Jan.
29.
Company from the sale of bonds and preferred stock Filed
Sept. 20,1944, Details in "Chronicle,"
also offers,
subject to the subscription if all is not issued in the exchange offer
Sept. 28, 1944.
7;;7^.:;7777'.7 7;>7/;
rights of common stock, to the holders of
with proceeds from sale by the company of
its outstanding W\% and 4V2%
preferred its interest in its former subsidiary, Gulf
COLUMBIA PICTURES CORP. has filed
stock the right to exchange their shares of
Public
Service
Co.
and of certain other
a
registration statement for 7,880 pur¬
old preferred stock, share for share, for the
properties, amounting in the aggregate to
chase
warrants
for
common
stock an4
new
cumulative
preferred
stock, plus a
$4,875,763, and general funds of the com¬
21.013
shares of common stock, without
cash adjustment.
The exchange offer pro¬ pany will be used to redeem at llOVa and
par value.
Samuel J. Briskin, Hollywood,
vides for payment by the company of $1.50
interest $20,000,000 outstanding first mort¬
Cal.y and A.
Schneider, New York, are
per share with respect to each 41/4.% pre*
gage and collateral trust bonds, and to re¬
named underwriters.
The price to publi^.
ferred. share exchanged, and in the case
deem at $110 per share and accrued divi¬
is estimated at $13,375 for the warrants
of the 4V\rU
series provision is made for dends outstanding shares of preferred stock
and
$21 for
the stock.
The shares of
the payment by the exchanging stockholder
not exchanged for the new preferred stock;
common
stock covered by the prospectus ■
of $1.50 per share, representing the differ¬
Dillon, Read & Co. is expected to head the
are issuable upon
the exercise of purchase
ences between the call prices and the of¬
Underwriting group.
Filed Jan. 6, 1945. warrants at any time prior to their expira¬
fering price of the new stock.
Such shares Details in "Chronicle," Jan. 11, 1945.
tion date.
The entire proceeds from sale
as
are
not issued under the subscription
of
the
warrants
will
be received by A.
and exchange offers will be purchased by
Schneider,- the holder of the warrants.
He
MONDAY, JAN. 29
underwriters and offered to the public. Net
is treasurer of the corporation and a di¬
DELTA AIR CORP. Tras filed a registra¬
proceeds from the sale of shares not issued
rector and vice-president.
Filed Dec. 22,
tion statement for 102,424 shares of com¬
in exchange for old preferred stock will, to
1944.
Details in "Chronicle," Jan. 4, 1945.
mon stock
(par $3).'
the extent necessary, be devoted to the re¬
Address—Municipal Airport, Atlanta, Qa.
demption of,the old preferred stocks.
The
$100
private
confined to
should not exceed the
of
The exchange offer is
share basis plus a
will call for
redemption the unexchanged shares, sub¬
ject to the consummation of the sale to
underwriters of the stock to be sold.
The
be
to
registration statement for 199,847
4% cumulative preferred stock,
a
shares
whether
& CO., LTD., INC.,
PHILIP MORRIS
tiled
ability .of the; borrowing
nation and its power to acquire
foreign exchange
for repay¬
ment.
Foreign x dollar
loans
.
approach to the ex¬
change problem—the extension
of
direct4 aid
in
substantial
amount to Britain following the
successful conclusion of a trade
conference—has by its advo¬
cates been termed the- "key-na¬
tion"
or
"key-currency"* ap~.
proach. It is predicated on the
firm conviction that the "key?
currencies" must be stabilized
V
be
port
This
77;-
represent new financing by the
Filed Dec. 19, 1944.
Details in
"Chronicle," Dec. 28, 1944.
Offered
Jan. 3
by Lehman Bros, and
Lazard Freres & Co. at $13Va per share.
company.
registration
a
shares of
($100 par).
$6 preferred shares.
not
do
which will enhance the ex¬
-uses
..
issued and outstanding f
The shares are
public or
on
'
the United States should be pre¬
sec.
INVESTORS CO.,
registration statement for
220,000 shares of common stock (no par).
GENERAL AMERICAN
international finance.
in
,
registration
than twenty
ago,
INC., has filed a
terminated. The consequence of
exporting too much at one time
and too little at another would
make us a very unsettling factor
;;
:7\7'7'-777'■ v777',-'v;
...
were
grouped according to dates
on
which registration statements will
in normal course become effective, un¬
less accelerated at the discretion of the
days
the stock at $10 per
interest and
and
100
share.
...
solution
statements
'
justified in encouraging capital •j be viewed in the light of "make
i f work" proposals. The huge capexports, for only then will debt¬
i
ital exports needed to maintain
ors be able to repay their debts.
wartime export levels would, as
3. If the trade conference has
our
citizens became aware of
proved a success, this country
the waste involved, be abruptly
should lend its assistance in the
whose
filed less
issues
of
List
Filed Dec. 6, 1944.
Details in
"Chronicle," Dec. 14, 1944.
■
Offered Jan. 15, 1945, the debentures at
capital.
POWER CO.
&
statement for
preferred stock, cumu¬
lative
The dividend rate will
be filed by amendment.
The company pro¬
poses to invite proposals for services to be
renedered to it in obtaining acceptances of
the exchange offer of new preferred stock
for old
preferred, and for the purchase
from it of such of the 11,972 shares as are
not exchanged pursuant to the exchange
offer.
The 11,972 shares of new preferred
are to
be issued to retire the outstanding
filed
11,972
NEW FILINGS
.
LIGHT
OHIO
CENTRAL
has
*
plus dividend.
maintained.
been
the
aggregate of 299,500 shares of
the options varying from
shares.
58,440
options
stock
are
125%
being
on
Jan.
the last sale of
exercisable at $7.50 per
,
of
3,
the market price of
1944
as
the stock on
evidenced by
the New York
Stock
Exchange on that day.
good
for
five
years
from
Options
Jan.
3,
are
1944.:
Since the issuance of the options-two per¬
POWER
ARKANSAS-MISSOURI
has
filed
a
CORP,
registration statement for $2,-
first mortgage bonds,
series A,
%, due Dec. 1, 1974.
Proceeds together
general funds of the company to the
extent required, will be used to redeem, at
000,000
3 Va
with
first mortgage bonds,
June 1, 1965, of the
company.
The bonds will be offered for
sale at competitive bidding.
Filed Dec. 4,
1944.
Details in "Chronicle," Dec. 7, 1944.
105, of $2,350,000
series A, 4%, due
CANADA
DRY
GINGER ALE, INC., has
sons
holding options
shares
the
have
resigned
to subscribe to 2,000
from the employ of
and forfeited their options.
Filed Dec, 14, 1944. Details in "Chronicle,"
Dec.
company
21,
1944.
EXCESS
nas
981
filed
a
shares
7'7y7,7 7: 7,",y /
.
7
INSURANCE
CO. OF; AMERICA
registration
statement for 48,-
of
capital
Shares ars to be offered
stock
(par '$5).
for subscription to
stockholders of - record May 31,
1944, on a pro rata basis at $8 per share.
Net proceeds will be added to company's
capital and surplus funds.
Unsubscribed
shares will be sold to Lumbermen?? Mutual
present
for 50,429
stock (no
Filed May
be filed by amend¬ i^Casualty Co. for investment.
29, 1944.
Details in "Chronicle," June 8,
being offered for
1944.
77; 7;:
777, 7-::i 77 • 77
subscription
to
the holders of common
stock at the rate of one share of preferred
FLORIDA POWER CORP. filed a regis¬
for
each
12
shares
of
common . held.
tration statement for 40,000 shares cumu¬
It
is
anticipated
that
in
connec¬
The
tion
with
the
continuation
of
the ex¬ lative preferred stock (par $100).
dividend rate will be supplied by amend¬
pansion program commenced by the com¬
ment.
Net proceds from the sale of'the
pany
in 1936 the net proceeds
of the
new
preferred stock, together with addi¬
stock, together with pther funds of th$
tional funds from the treasury to the/excompany,
will be used for the establish¬
tent required, are to be applied as follows:,
ment and acquisition of additional plants
Redemption of 28,762 shares 7% cumula¬
and
warehouses,
the
purchase
of
new
tive preferred at $110 pe.r share $3,163,820;
machinery and equipment for the proposed
new
plants,
the purchase of additional redemption of 5,940 shares of 1% cumula¬
tive preferred at $52.50 per share $311,850;
delivery equipment, for the improvement
donation to Georgia Power & Light Co. to
and rehabilitation of existing plants, etc.
be used for redemption of certain of
its
Union Securities Corp. and Hornblower &
Weeks
head
the
underwriting group.— securities as provided in recap plan of that
Filed Dec. 22,
1944.
Details in "Chron¬ company $1,400,000; payment to General
Gas & Electric Corp. for 4,200 shares of
icle," Dec. 28, 1944.
$6 preferred of Georgia Power & Light Co.
$75,600,
and expenses $80,000, total $5,CAPITAL TRANSIT CO. has filed a reg¬
Stock is to be offered for sale by
istration
statement
for $12,500,000
first 031,270.
the
company
pursuant to Commission'!)
and refunding mortgage bonds,
series A,
competitive bidding Rule U-50, and names
4%
due Dec. 1, 1964.
The net proceeds
of underwriters will be filed by post-effec¬
from
the sale of the bonds and from a
tive amendment. The succesful bidder will
$2,500,000 bank loan with treasury; cash
name
the
dividend
rate
on
the stock.
will be used for refunding purposes and to :
filed
a
shares
registration
of
statement
cumulative
preferred
par). Dividend rate will
ment.
The shares are
.
make
payments
on
account
of equipment j
purchases, etc.
Filed Nov. 10, 1944.
tails in "Chronicle," Nov. 16, 1944.
De-
Filed July 21. 1944. Details in "Chronicle,
July 27. 1944.
(This list is Incomplete this week)
■■■
THE COMMERCIAL & FINANCIAL CHRONICLE
288
Teletype
.
New England Public Service
Trading Markets
Firm
NY 1-971
"J
Thursday, January 18, 1945
Preferreds
Underwriters-—
SO. AMERICAN BONDS
Telephone
HAnover
Howard Stores
American Phenolic
all issues
Secondary Market and
2-0050
Majestic Radio
■
Adolf Gbbel
Wholesale Distributors
MARKS & no- INC.
r!ARL
FOREIGN SECURITIES
;
OVER
Members N.
New York 4, N.Y.
•
40
V
Y. Security Dealers Ass'n
Exchange Pi.,. N. Y. S
CO. Inc. CHICAGO
AFFILIATE: CARL MARKS &
Al/%% Pfd.
M. S. Wien & Co.
THE -COUNTER SEVERITIES
-
SPECIALISTS
50 Broad Street
Servel
Teletype. N.
Y.
HA. 2-8780
1-J397
Kobbe, Gearhart & Company
By JOHN T.
,*
-
,
INCORPORATED
Governments"
"Our Reporter on
Members" New- York
CHIPPENDALE, JR.
of the Govern¬
advanced 'With
them at all-time highs since they were issued. . . . The
exempt securities were again the featured performers and
Last week was one of the most sensational periods
market,' arid avery* Obligation in the list
registered the sharpest gains with the 2%%
due 12/15/60/65 advancing % of a point, which is a substantial gain
for a Government obligation. ... The long-term partially exempts
are now selling at all-time highs having gone through their previous
tops during the week. ... The following table shows the price and
yield on these securities now corripared with the former high levels
"
7
Ud'd'idUyy
made in 1943:
•
:
Security—
.
.
•
*
•
V^'2%
1 "3-15-1955-60
•"
12-15-1960-65—
2%
s
Free Yield
Present Highs
Free Yield
112.28
112.13
1.39
1.42
113.8
112.24
1.23
1.30
112.13
1.50
112.24
112.28
1.58
113.8
■' July 1943
'
'
9-15-1956-59
;
1.41
1.50
FROM NOW ON
i
T-
There have been no predictions
-
made in Government bond cir¬
these securities, although
cles, as to the extent of any further rise in
;
Tax
Tax
Previous Highs
6-15-1958-63——.
*
at present levels the market is being watched very carefully for a
top formation or news or developments that could change the present
situation.
'
;
■
...
,
However, it was pointed out that with the
exception of the
2%% due 12/15/60/65, the other partially exempts are selling at >
or above their yield curve which means that these issues do not
j
have the same appreciation possibilities from here on as is em¬
bodied in the longest partially exempt issue.
'
*
Accordingly it has been recommended that if one must go into
the partially exempt obligations at this time, the issue considered to
be the most attractive is the 2%% due 12/15/60/65, which even at
•
NEW
YORK
National Service Cos. Pfd.
5
philadexpiiia
^
REctor 2-3600
Schoellkopf; Hutton & Pomeroy
Bell Teletype
telephone
Enterprise 6015
new
1-576
york
present level of 113 is well under its top levels in the yield curve.
Some of the larger institutions it is reported have been moving
.
.
intermediate term partially exempts
of the
12/15/60/65.
sold and
•
into the 2%%
;
.
v
empt issue.
.
.
27/h% due 3/15/55/60
due
are
■
.
Although there is a lengthening in the maturity by this exchange
of five years and nine months, the increase in yield after taxes of
0.27 is" considered attractive enough to compensate for this factor. . . .
;
TAXABLES ALSO
7
STRONG
the-2%% due 3/15/56/58 and the longer 2 ¥2 s being well bought. . . .
were heavily traded with the 2%
The intermediate term maturities
/ due March and September, 1950/52, the 2% due 9/15/51/53, the 2%
due 6/15/52/54 and the new 2s among the most active issues. . . . £
Particularly in the
2% taxable
group
watching the market very closely, since many
well ahead of the yield curve.
.
.
This has caused
some
the institutions
of these issues are
are
institutions to take time out to recheck the
situation since many new ideas are now appearing in the market.
...
"With the debt of the nation large and certain to increase the prospects
are that it may be nearer $350 billions than $300 billions when both
phases of the
war are over.
...
Such a huge.debt makes one thing
apparent and that is, that the debt burden will not be allowed
to increase, which means a low, if not a declining rate of interest.
The rate of interest on the national debt has been decreasing
very
.
.
for years, as
1932
3.505%
'
-
::'
been
the
,■
1942
'
:
.1943
■
2.285
1.979
'
^Calendar
year
expected to compete when
was
to be $50,000,000,
issue
have
decided
to
merge
for
the
purpose of bidding on the larger
amount.
combined
forces
jointly
The
the
headed
by
are
Chase
National Bank of New York and
the National City Bank of New
Ordinarily,
headed by
the respective institutions furnish
the principal competition for New
York City bond offerings.
How¬
ever, when the amount involved
is exceptionally large, as in the
present instance, it is the practice
groups
bid
one
ended Dec. 31.
*
consolidated groups.
This policy,
it may be noted, has proved mutu¬
ally advantageous to the city and
the underwriters.
Prior to
award
the New York
pieces
City
of financing of
interest.
To¬
market
(Thursday)
morrow
Christi,
Texas,
bids
an
on
will
issue
of
Corpus
consider
$1,500,000
seawall and breaker bonds and
the following day the mu¬
nicipality of Union City, Ns J.,
on
will conduct
refundings.
sale
a
of $716,000
Another New Jer¬
issue for the current week
of
Friday.
'
..
City
scheduled to
TEXTILE
J.
A. White
&
Securities with
Co., Cincinnati,
which
can
be done very readily.
paid
Eastern States Pfd.
Public
compared with
1.18%
and
week ago.
,
Lumber & Timber
II. S. Radiator, Pfd.
Stocks & Bonds
120
Broadway
New York 5
•
Telephone COrtlandt 7-0744
Pell Teletype NY 1-880
1
•
<.«■
•'
Inc.
Fuerst,
member of
Exchange;
Blauner, will form
partnership of Otto Fuerst &
York
Stock
with
offices
41
at
Broad
the
board
[
the
and
the
Co.
Street,
New York City, as of Feb. 1. Mr.
has recently been active
as
an
individual
floor
broker;
partner in
Otto Fuerst & Co. and Maloney,
prior thereto he
with
did
:
Telephone RANdolph 3738
Teletype—CG 989
(a) The
j
York
of
Harvill
Mr.
W.
Sti Cable Cot-,; and Allar* Burleigh^ V
President
of
Harvill
Processes,) '
Corporation, also have been
elected directors.
The
makes
corporation
pressure
high
die castings; at present
for the aircraft and other
dustries.,
war
in¬
:
Blauner
as
an
INDEX
individual
dealer, and was a; partner
Blauner, Simons & Co.
in
...Page:.'.
Bank and Insurance
Calendar of New
Canadian
Mallory Interesting
P. R. Mallory & Co., Inc.,
&
Stocks........ 268
Security Flotations 287
Securities
...............
272
Municipal News and Notes....,.,.. 283
Mutual
offers
interesting situation, according
to an analysis prepared by Steiner
Rouse & Co., 25 Broad St., New
York City* members of the New
York Stock Exchange.
Copies of
this analysis may be had from
Steiner, Rouse
Exchange,
Corporation
of i
E. Spraekl®
•r r
Vice-President ©f Anaconda Wire .
Angeles*
Cohen, Simonson & Co.,
business
Stock
was a
Anderson & Block.
was
New
has been elected Chairman of the
Fuerst
Co. upon re¬
Our
Our
Funds
Reporter
Reporter's
Public
270
Governments.,,.. 288
Report............. 268
Utility Securities........... 262
Railroad
Real
i;...................
on
Securities
Estate
Securities
,..,,......,.,
263
Securities...,..,,...... 264
Salesman's
Corner....... 262
Tomorrow's Markets—Walter
Whyte
Says
262:;
quest.
Therefore, the important factor in
or
Connecticut and Michigan Sec¬
tions on page 266.
rate of interest
debt still increasing and debt charges
our
WANTED
declining rate of interest in our coun,
use
of short term securities in financing the deficit.
There appears to be little doubt that the government
208 So. La Salle, Chicago
Bell
Jeffrey S. Granger of
Sulzbacher, Granger & Co., Ill Broad¬
way, New York City, members of
■
Be Formed in N.Y.G.
Otto
Tele. BOston 22
Granger Elected by
Harvill Corporation
.
Blocks of Securities
The increasing Use of Treasury bills, with a %% rate, certi¬
ficates with a•%% rate and notes with 1*4% and lower rates,
have substantially reduced the cost of financing the war, . ..
REMER, MITCHELL &REITZE
■
With
try has been:
Bought—Sold—Quoted
W. T. BONN & CO.
Tel. HANcock 8715
Gilo Filers! & Go. io
New
STREET, BOSTON 10
Established In 1922
1.50%
/
nation's debt is the debt burden
tant factor responsible for the
Real Estate
III. Power Div. Arrears
that debt.
24 FEDERAL
of between $6 billions and $6% billions to be expected when the war
is over, low interest rates become a must with us.
The most impor¬
Utility, Industrial
Pressurelube. Inc.
on
a
New England
are
moving higher in the
Ohio municipal market and ac¬
tivity is also improving. The yield
on 20 Ohio bonds stands
today at
1.33%, compared with 1.34% a
week ago. Our indices of yield on
10 high grade bonds and on 10
lower
grade
bonds
are
today
1.17%
and
1.49%, respectively,
a
New Eng. Market
Specialists in
Unlisted Securities
follows: "
Prices
SECURITIES
a
Frederick C. Adams & Co.
reported under date of Jan. 10, as
an
J an. 23, the New
$75,000,000
loan
is
materialize, also the
connection with
Unlisted
Industrial Issues
Investment Trust Issues
Public*Utility Stocks and Bonds
x
off its debt at maturity to remain solvent, but only has to refund it,
BS 328
Wet specialize in all
Municipal Bond
Advance; Greater
Market Activity Reported
Unlike private corporations, a Government does not have to pay
/
Teletype
Hanover 2-7913
Insurance and Bank Stocks
Prices
the
Tuesday,
York
IMPORTANCE OF CARRYING CHARGES
New Torlc;
Hubbard 6442
Ohio
Milton D.
Jan. 23, there will be
on
several
On
'
BOSTON 9, MASS.
Boston
behalf of the
on
The opening day of next week
(Jan. 22), the city of Pittsburgh,
Pa., will place an issue of $1,500^000, also for refunding purposes.
2.518
1941
'
New
York City offering, it is disclosed
that the two syndicates which had
on
2.583
'
the
$322,000 West
Orange
refunding
issue,
for
which tenders will be opened
Interest
1940
with
connection
consists
Rate of
June 30
;
-in
sey
is indicated by the following table:
Fiscal Year Ended
RALPH F. CARR & CO.
Jan. 16 to Jan. 23.
general
.
Corp.
,
to enter
,
The taxable issues also showed substantial gains last week with
•
Decision
of New
York^ City city of Minneapolis, Minn,, award
Comptroller Joseph D. McGol- of $2,500,000.
Aside from the foregoing, the?
drick,
following
conversations
with investment bankers, to in¬
calendar of prospective
busi¬
crease the size of the city's forth¬
ness, at least at this writing, is
rather barren, except for the?
coming bond offering from the
original figure of $50,000,000, to
$560,000 New Orleans, La., issue
$75,000,000, constitutes the best
fo be awarded on Feb. 6.
We do not take into account the
possible evidence of the excep¬
tionally favorable condition of more than $25,000,000 of short^
the -municipal bond market.
In term housing authority borrowing
consequence
of the
change
in announced for Jan. 30, as these
amount of the issue, the date of issues are in the nature of bank
sale
had to
be
deferred
from loans,
York.
,
being
the proceeds reinvested in the longest term partially ex-
Also it is indicated that the
•
Municipal News & Notes
.
out
.
Keyes Fibre
£
United Elastic
the last four maturities
•
•
Security- Dealers \ Association
STREET,
11
TELEPHONE
.
ment bond'
many of
partially
NASSAU
45
will keep
the floating debt large to ease the
debt rate. . . . They may even
reduce the maturity of future bond issues and offer the shorter term
securities with a lower rate of return as the British have done.
These thoughts and facts have had a marked effect upon the
government bond market and it is indicated that they have been
very important in the recent rush to
acquire the higher coupon
^obligations in the list.,:
;;;„
..
v—-
*
■
j-
for Distribution
Hill, Thompson & Co., Inc.
Markets and
120
Situations
for Dealers
Broadway, New York 5
Tel. REctor 2-2020,
Tele. NY 1-2660
@FedFRASER