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The jittancial 111:tinirle PAY. Optic! VOL. 134. SATURDAY,JANUARY 21932. NO. 3471 having been marked by steadily growing business depression from beginning to end. PUBLISHED WEEKLY The facts in that particular are so patent that Terms of Subscription—Payable in Advance seem to be no excuse for any student 12 M03. 6 MOS. there would Including Postage— $6.00 $10.00 Within Continental United States except Alaska of them. Yet we are all the time ignorance 6.75 being in 11.50 In Dominion of Canada 7.75 Other foreign countries, U. S. Possessions and territories— 13.50 statements from quarters prewith confronted being The following publications are also Issued: For the Bank and Quotation Record and the Monthly Earnings Record the subscription price is sumed to be well informed claiming that the future $6.00 per year each;for all the others is $5.00 per year each. Add 50 cents to each for postage outside the United States and Canada. of business and the trend of values lie entirely in NOTICE.—On account of the fluctuations in the rates of exchange remittances for foreign subscriptions and advertisements must be made the hands of the Federal Reserve Banks, and that if in New York funds. MONTHLY PUBLICATIONS— only they will do their part in flooding the country COMPENDIUMS— BANE AND QUOTATION RECORD PUBLIC UTILITY—(seml-annually) RECORD EARNINGS MONTHLY with adequate credit facilities the future can be RAILWAY& INDUSTRIAL--(rOUP VAT) ETATS AND MUNICIPAL—(sNDIRIIIL) looked forward to with absolute assurance. Terms of Advertising cents 45 The views here outlined, so utterly at variance line agate per Transient display matter On request Contract and Card rates with Representative, the truth, should not be allowed to go unchalWestern Gray, H. °mesa° OrricE—In charge of Fred. 208 South La Salle Street, Telephone State 0613. 0. E. London, Gardens, lenged because of the harm they are calculated to do. Drapers' 1 Smith, & °mom—Edwards LONDON They found expression anew this very week and are WILLIAM B. DANA COMPANY, Publishers, William Street, Corner Spruce, New York. the more freighted with mischief because promulCOMPANY. DANA B. WILLIAM gated by persons more or less prominent in the ecoPublished every Saturday morning by President and Editor. Jacob Seibert; Business Manager. William D. Riggs. Co. of Office all. of Addresses Seibert. D. Herbert Sec., Seibert; nomic world. A dispatch from Washington, pubTreas., William Dana lished in the New York "Times" on Thursday mornThe Financial Situation. ing,tells us that"a proposal that the Federal Reserve One of the anomalies of the situation at the present System reverse its present policy of credit contractime, when the country is in the trough of a great tion so as to help draw into the channels of trade business depression, is the persistency with which and industry about $1,500,000,000 of currency 'in the theory is being proclaimed that the country is hiding among the people,' was the core of a series of suffering from a contraction in banking credit, when suggestions for ending liquidation—'a Frankenstein the precise opposite is the case, and that the sov- threatening to destroy the hand which created it'— ereign remedy for the prevailing bad times is that presented to-day before representatives of a dozen our Federal Reserve banks proceed without hesita- economic, social and political organizations." This tion to add to the volume of Reserve credit afloat and is strong language, and it will be noted that we are correspondingly enlarge the amount of Reserve notes told that the beliefs indicated reflected the outpourin circulation. The objectors urge that the Reserve ings "of a dozen economic, social and political orSystem reverse its policy to the contrary, entirely ganizations." The dispatch goes on to say that "belief that the ignoring the fact that the Reserve authorities have been pursuing exactly the policy which they are advo- deflation has gone far enough, and that vigorous and cating, and that it has failed to achieve the desired aggressive action should be taken without delay was expressed by a group (sic) of economists, including results. The easy money policy of the Federal Reserve Colonel Leonard P. Ayres, Vice-President of the System has been undeviatingly pursued for the whole Cleveland Trust Co.; Lionel D.Edie of the American of the period since the stock market crash in the Capital Corp. of New York; David Friday of A. G. autumn of 1929. This policy had two main objects, Becker & Co., New York, and Professor James Harnamely,the arresting of the decline in security values vey Rogers of Yale University." Colonel Ayres, it is and the revival of trade. It has accomplished stated, in addition to proposing action by the Fedneither. Security values have dropped lower and eral Reserve System, declared that Congress should still lower, and instead of easy money and unlimited promptly organize the Reconstruction Finance Corp. banking credit having induced purchases of securi- and should give the Federal Reserve System broad ties, liquidation has proceeded on an ever increasing emergency powers,including authority to rediscount scale, until to-day securities, in market estimation, the debentures of the Corporation—a proposal, in appear to be almost absolutely devoid of value. And our estimation, of highly questionable character, the remark applies not alone to stocks, the share owing to the apparently non-liquid character of these capital of the corporations, but even more unquali- debentures. Colonel Ayres is said to have urged that fiedly to bonds, which are entitled to their fixed in- Congress quickly adopt a definite budget looking terest charge before any dividend payments can be toward a policy of limiting Federal expenditu'res, a made on the stock issues. As for reviving trade, the recommendation with which all right-thinking people country continues in a state of gloom and business will be in full accord. Addressing the joint luncheon of the American Staparalysis never before witnessed in the entire history closed, tistical Association and the American Farm Economic just of the country, the year 1931, which has financial Tlxronicle [VoL. 134. AL CHRONICLE Association, Colonel Ayres, the dispatch states, declared that recovery of the United States did not have to wait for the economic revival of Europe, provided the steps which he outlined were taken. At the same time, we are told, Colonel Ayres warned that much unnecessary business wrecking would continue next year (1932) if price deflation and credit contraction continued. He is also represented as having said the depression "is not yet half through," adding that "since decline in business activity and commodity prices has not yet stopped, it seems probable that the return to normal levels of business will take more than two years after it gets under way, and we do not know when that will be." He is said to have expressed a belief, however, that 1932 "is going to be the transition year of this depression." The economists who addressed the luncheon, it is stated, "hesitated to make definite predictions concerning the future of industry and trade in view of uncertainty which they held to be engendered by the Federal Reserve's credit contraction policy. To them the policy of the Federal Reserve in the next few months is the unknown equation upon Which recovery depends. It was asserted that if the present policy is not changed the proposed Reconstruction Corp. would be of little avail in helping to restore confidence and stop hoarding. David Friday is quoted as having said that it was impossible to make any positive pronouncement as to the return of prosperity because of Federal Reserve policy. "If the investment holdings of banks continued to decline this would mean further bank failures, renewed hoardings, increased rediscounts" "and a hopeless outlook indeed." "The institution which can break this vicious circle by the use of its powers to buy Government bonds in the open market is the Federal Reserve System," Mr. Friday said. "Whether it will change its policy from henceforth and break this circle is one of the contingencies upon which the future of prosperity depends." It is added furthermore that Professor Rogers agreed with the other speakers that the Federal Reserve System provides machinery for easing the credit structure, through open market purchases of bills and Government securities, providing such purchases are maintained courageously and persistently. It seems to us that these learned men are all talking in plain disregard of the facts. They are blaming the Federal Reserve System for not extending credit facilities when it has 'been persistently engaged in doing that very thing and doing it, too, through its open market operations in the purchase of Government securities and bills. Certainly at the time of the collapse in the autumn of 1929 Reserve credit was afloat galore, otherwise the stock market craze could not have proceeded so far. How do the figures at the present time in that regard compare with those before the 1929 crash? Take first the amount of Federal Reserve notes in circulation. How many persons know that there are almost $800,000,000 more of such notes outstanding than at the beginning of October 1929? Yet such is the case, this week's return for Dec. 30 reporting the amount of Federal Reserve notes in actual circulation at $2,613,104,000, whereas the amount on Oct. 9 1929 stood at only $1,800,300,000, and with note liabilities increased in amount of $800,000,000 gold reserves are now actually somewhat less than at the date referred to, the amount for Dec.30 1931 being $2,987,564,000,whereas on Oct. 9 1929 the amount was $3,012,227,000. The result is that the ratio of total reserves to deposit and Federal Reserve note liabilities combined now is only 61.9% as against 74.4% on Oct. 9 1929. We are told by those who argue in favor of further credit inflation through the open market operations that the Federal Reserve Banks should "courageously and persistently" engage in the loading up with Government securities. Have not the Reserve Banks been accumulating a vast volume of these very Government securities? The facts speak for themselves in that respect as in many other respects. Over three quarters of a billion of Government securities are now counted among the holdings of the Federal Reserve institutions, or, to be exact, the amount for Dec. 30 is reported at $803,228,000 as against no more than $140,758,000 on Oct. 9 1929. The increase, it will be observed, is $662,470,000. Is not that a big enough addition? The open market purchases of acceptances'by the Reserve banks have latterly been allowed to run down owing to the increased demand for acceptances on the part of foreign central banks, but even after such reduction the total held by the 12 Reserve banks is not materially smaller than it was in the early part of 1929, the comparison being between $326,975,000 for Dec.30 1931 and $333,151,000 for Oct. 9 1929. The holdings of discounted bills by the 12 Reserve banks are also larger now than at that earlier period,the amount for Dec.30 1931 being $1,024,133,000 as against $857,306,000 on Oct.9 1929. Thus altogether bill and security holdings now foot up no less than $2,185,216,000 as against only $1,345,970,000 on Oct. 9 1929, showing here an expansion of $839,246,000. The comparisons are so striking that we present them herewith in tabular form as below; we have also added a line to show the deposit liabilities at the same two dates: CONDITION OF FEDERAL RESERVE BANKS. Dec. 30 1931.. Oct. 9 1929. Fed. Res. notes in circulation_ _2,613,104,000 1,860,300,000 Total gold reserves 2,987,564,000 3,012,227,000 Bills discounted 1,024,133,000 Bills bought in open market.._ _ _ 326,975,000 Total U. S. Govt. securities_ _ _ _ 803,228,000 Other securities 30,880,000 Total bills and securities 857,306,000 333,151,000 140,758,000 14,755,000 2,185,216,000 1,345,970,000 Total deposit liabilities 2,480,109,000 2,387,408,000 Rates of investments to deposits_ 88.1% 56.4% Ratio of total reserves to deposit and F. R. note liab. combined 61.9% 74.4% The foregoing figures and comparisons would appear to be conclusive as to whether the Reserve Banks have or have not done their full part towards easing the credit situation as far as the operations of the Reserve Banks themselves are concerned. Nay, more. They would appear to furnish warrant for uneasiness in that they raise the question whether the Reserve Banks have not gone beyond the limits of prudence. This question arises because of the fact that so large a portion of the deposits of the Reserve Banks are found to have been loaned out or invested. On Oct.9 1929 total deposits were $2,387,408,000, and only $1,345,970,000 had been invested or loaned out, or but 56.4%. On the other hand, on Dec. 30 1931 deposits were $2,480,109,000, while the bill and security holdings aggregated $2,185,216,000, or 88.1% of the whole. Put in another form,in October 1929 $1,041,438,000 of the deposits were not tied up in loans or investments, while at the present time only $294,893,000 of the deposits are not thus tied JAN. 2 1932.] FINANCIAL CHRONICLE 3 up. That is the true test as to the condition of the Re- they sell or a decrease in the prices of the serve Banks, namely,the extent to which the deposits tured articles required. In all of this, manufacthe Farm Which they hold have been absorbed in extending Re- Board was and could be of no assistance, but graduserve credit, constituting a far more significant indi- ally wages have been reduced and in consequence cation than the Reserve ratios—and this test shows prices of manufactured articles have fallen and have that to-day the Reserve banks are in a very extended been brought nearer the reach of 'the agricultural condition, so much so as to suggest extreme caution classes of the community." in proceeding any further along the same lines. What Mr. Rawson says on the wage question is It is only necessary to add that the country to-day also worth quoting, as follows: is not suffering from any dearth of banking credit "For a time or of banking facilities. Rather the reverse is the increase purchait was thought that high wages would sing power and case, and on that point it is worth remembering that back more normal conditions. thus help in bringing But it has gradually on Sept. 30 1929,according to compilations prepared been realized that nominal high wages under existi by the Stock Exchange itself, borrowing on Stock circumstances merely added to the restrictions ng imExchange account reached an aggregate of $8,549,- posed upon the output of manufacturers and others, 333,979, whereas at the end of November 1931 the and that there would, in fact, be greater purchasing amount of such borrowing aggregated no more than power maintained in the community as a whole by $730,151,908; in other words,$7,819,000,000 has been permitting wages to fall somewhat in the wake of commodity prices. The wage reductions have not released from speculative channels. been drastic and real wages of labor measured in What the country needs to-day is, not more bank- purcha sing power ing credit, or more currency, but more confidence. words, the lower have not been reduced. In other wages of to-day will buy as many It is confidence that is lacking, more than anything goods as the higher wages of yesterday. It seems else, and to such an extent that great multitudes that this situation has been understood by the wage cannot be induced to make purchases of anything on earners 'themselves, since the wage reductions have any large scale, neither securities nor real estate, nor not been accompanied by social disturbances to any commodities nor anything else. This loss of confi- extent and there have been far less labor disputes dence in the first instance grew out of the fact that than occurred in 1921 or in previous depressions." former values were speculative in the commodity Perhaps the most encouraging piece of news the markets, in real estate and in other things, just as presen t week has been the report which came from surely as they were in the stock market, and that San Franci sco on Tuesday that 15,000 shop emadjustment to a lower level was inevitable and unployee s of the Southern Pacific RR. Co. had accepted avoidable. More recently lack of confidence has been intensified by the obstacles that have been a 10% cut in wages, effective Jan. 1. It is stated that the entire shopmen's committee, composed of placed in the way of the adjustment to the lower levels referred to, while now the multiplication of members from all points on the Pacific lines of the new credit facilities, established with such facility, railroad, added their signatures to the agreement. That the agreement was reached in this peaceful way have created a fear that the country is embarking upon a new era of inflation with all that that in- makes it all the more gratifying. Equally important volves. The Federal Reserve Banks might, through was the announcement made simultaneously that the their open market operations, create new supplies of Southern Pacific had notified its Brotherhood of credit piling mountain high, and they would con- Maintenance of Way employees that their pay would tribute not in the least to remove the existing dis- be cut 15%, effective in 30 days. This last, it seems tress in the business world, but rather tend to in- to us, is the proper way of dealing with the situation tensify it, since it is not the kind of medicine needed where the employees cannot be persuaded in a after the long debauch through which the country friendly way to acquiesce in a reduction in wages. A lowering of wage scales is absolutely essential for has passed. A true diagnosis of the situation is contained in the enduring operation of the railroads, and the rethe "Survey of the Year 1931," issued the present duction is made for that reason alone. Where the week by Frederick H:Rawson,Chairman of the First employees will not listen to reason the next step, and National Bank of Chicago and the First Union Trust the only step, is to put the cut into effect and then & Savings Bank of that city. Speaking of the numer- let the employees contest it if they choose,in the way ous efforts made to stave off the inevitable, Mr.Raw- provided by the law. And each road should act for itself and not wait for other roads in the same group son expresses himself to the following effect: to lead the way. And the reductions should be "In my judgment the situation has not been helped posted at once. Nothing is to be gained by collective by the various attempts made to escape the inevit able action . Indeed, collective action has been a dismal liquidation which should have been allowed to con- failure thus far. It means interminable delay, and tinue its natural course. At first, many artific ial meanw restoratives were applied to the situation and only hile the distress of the railroads is increasing gradually as one remedy has proved more useless and the prospect of their being restored to a paying than another have the people learned wisdom and basis being correspondingly dimini shed. become suspicious of all such efforts. The most glarA capital illustration of the truth of this statement ing example of a futile attempt to bring aid to a dis- is seen in the action this week of the Railway Labor tressed part of the population is the failure of the Execut ives' Association, comprising 21 brotherhoods Farm Board. This was not due to any lack of ability and unions, at their meeting in Clevel on the part of the personnel of the Farm Board. It and on Tueswas the result of economic causes, just as the failure day, in setting Jan. 14 as the date for meeting in of the efforts to stabilize rubber and coffee prices in Chicago with the committee of nine railroad Presipast years was due to the workings of immutable dents to act on the proposal for a 15% reduction in economic laws. We all realize that we cannot expect wages. This means, of course, further delay of a well-balanced prosperity until the purchasing two weeks, after the matter has been draggi ng along power of the farming classes has been equalized, for months, with innumerable conferences at one either by a rise in the prices of the products which place or another—at New York,at Cleveland, at Chi- 4 FINANCIAL CHRONICLE [vol.. 134. 1929. 1930. 1931. cago. These Labor Executives seem to be entirely PENNSYLVANIA— $ r— $ of Month Novembe indifferent to the loss of tune involved and to have Gross revenue 31,914,045 42,940,025 54,463,420 no conception of the seriousness of the situation, and Net operating income_ 3,650,891 5,480,442 7,389,986 how delay must work to the detriment of the wage 11 Mos.End. Nov.30— 417,291,673 535,803,340 642,938,479 earners themselves. The railroad Presidents, on Grossrevenue 48,136,625 88,505,147 129,432,504 g Net income_ operatin action e resolut in their part, appear to be lacking and to be leaving things too largely in the hands ATCH. TOP.& S. F.— Month of November— of the labor chiefs. The time has now arrived for 14,127,434 18,198,121 23,830,851 revenue Gross action. Procrastination should not be tolerated any Net operating income_ 3,642,584 4,962,336 7,742,656 longer. 11 Mos. End. Nov.30— 169,440,763 210,385,894 247,373,411 On Jan. 14, the day now fixed for the next confer- Gross revenue g 30,504,313 42,253,564 65,339,450 income_ any operatin Net against taken ence, a definite stand should be road every results, of fails further delay. If that SOU.PAC.LINES— Month of November— should proceed to act of its own motion and give 13,874,614 18,826,777 24,360,497 revenue Gross e to be effectiv are ons reducti d propose notice that the 880,385 2,981,238 3,731,051 income_ g operatin Net 30 days hence. Let the consequences be what they 11 Mos. End. Nov.30— may. This is the alternative to positive bankruptcy Gross revenue 185,827,449 240,815,779 288,531,803 in the case of the greater part of the railroad mile- Net operating income_ 21,616,331 40,762,713 56,656,938 age of the country. In many instances the acqui- CHIC. MIL.ST.P.& PAC.— escence of the employees will follow as a matter of Month of November— 7,926,568 10,345,079 12,969,285 course,for the average worker is possessed of a large Gross revenue 780,269 1,725,060 384,673 income.. g Net operatin true is this larly particu sense; common of amount — Nov.30 End. Mos. 11 of those in the railroad world, who are men of a high Gross revenue 103,725,336 132,642,124 159,853,695 degree of intelligence. Where acquiescence does not Net operating income_ 7,740,175 15,121,073 24,978,406 come immediately it will surely come after the lapse SOUTHERN RY.— of a little time, the unwilling or hesitant groups Month of November— 7,271,506 8,797,362 11,450,003 being forced by public opinion to fall in line with Grossrevenue 569,262 1,415,633 1,954,339 income.. g operatin Net y. majorit the great 30— Nov. End. Mos. 11 In the meantime we cannot refrain from again 90,901,810 109,776,492 132,297,696 Grossrevenue directing attention to the urgency of the situation Net operating income_ 7,931,306 17,700,179 27,957,905 and the really desperate plight in which the railroads ERIE— find themselves as their revenues keep shrinking Month of November— 5,542,887 7,196,761 8,668,417 month after •month with accumulative losses that Gross revenue 256,040 1,094,263 1,161,729 the of income.. g d history operatin Net railroa have no parallel in the entire 11 Mos.End. Nov.30— country. The earnings returns of the roads for the 73,850,560 88,768,927 105,304,552 Gross revenue present the in coming been er have month of Novemb 9,380,699 12,810,308 18,000,437 income_ g Net operatin which s earning in ge shrinka further the and week, UNION PACIFIC— they disclose is really appalling because of its mag- Gross revenue 11,557,930 15,649,019 17,842,141 nitude. Take the New York Central Lines for ex- Net operating income_ 3,347,734 3,181,893 3,947,423 11 Mos.End. Nov.30— ample. This system for November 1931 has net 144,193,546 176,893,231 201,866,152 revenue against as Gross 9, $995,53 only operating income of 21,932,408 32,839,805 42,496,953 income.. g operatin $1,942,643 in November 1930 and $6,058,783 in No- Net SYSTEM— vember 1929. In other words, this great railroad ILL. CENT. r— Novembe of Month system is now earning less than one-sixth of what Gross revenue 8,862,752 10,793,028 14,350,208 it did in the same month two years ago. The Penn- Net operating income_ 1,754,661 1,711,467 1,693,801 11 Mos. End. Nov.30— sylvania RR. is doing only a little better, its net 108,550,652 137,584,613 166,927,911 operating income having been cut completely in two, Gross revenue 12 g income.. 10,316,839 20,794,581 25,089,7 it being only $3,650,891 for November 1931 against Net operatin $7,389,986 for November 1929. The Atchison has The changes in the Federal Reserve return this also lost half its net income, with the amount for week are startling by reason of their magnitude. 1931 $3,642,584 against $7,742,656 for November passThe Federal Reserve Banks appear to have been 1929. In many other instances the comparisons with 12 The n. inflatio of sea e ing through a veritabl two years ago are even worse,the 1931 net being only holdtheir to greatly added have ions Reserve institut a small part of what the amount was in 1929. Thus of discounts, have enlarged their holdings of ings 5 $880,38 is Pacific rn the 1931 result for the Southe s a‘cceptances, and have also increased their holding against $3,731,051 in 1929, with the Milwaukee St. result of United States Government securities. The Paul & Pacific showing net of $384,673 against altogether is a huge expansion during the week in $1,725,060; the Southern Railway $569,262 against The disthe volume of Reserve credit outstanding. $1,954,339; the Erie $256,040 against $1,161,729. of a excess in d reporte holdings this week are For the 11 months ending with November the losses count $1,024,being amount exact dollars, the are even more striking, but it is wearisome to repeat billion which compares with $911,194,000 a. week , 133,000 further them, and we accordingly present without with only $251,398,000 a year ago on Dec. 31 comment the following comparative statement cover- ago and es of accept1930. Holdings of open market purchas ing nine of the more prominent systems: 1,000 $257,35 from ances have risen during the week 1929. 1930. holdAL— foreign 1931. CENTR time Y. N. to $326,975,000, while at the same $ $ $ Month of November— dured increas ently concurr acceptances have 27,534,690 34,920,749 45,179,241 ings of Gross revenue and 9,000, to $248,52 8,000 $238,64 995,539 1,942,643 6,058,783 ing the week from Net operating income_ are es securiti ment Govern States holdings of United 11 Mos. End. Nov.30— 354,971,025 443,605,118 545,287,909 now reported as $803,228,000 as against $758,222,000 Gross revenue Net operating income_ 27,511,513 54,236,035 98,167,812 JAN. 2 1932.] FINANCIAL CHRONICLE '5 again confined within a narrow range. Some further dividend reductions and omissions added to the dismal character of the year in that respect. The Reading Co. reduced the quarterly dividend on its common stock, par $50,from $1 a share to 50c. The Del. Lac. & Western suspended dividends altogether, for the first time since 1880. The Eaton Axle & Spring Co. made the quarterly dividend on common 2c. a share as against 25e. a share paid on 1 only 12/ Nov.2 and 40c.a share in each of the three preceding quarters, and 75c. a share quarterly from Feb.1 1929 to and including Nov. 1 1930. The Wilcox-Rich 2c. a 1 Corp. declared a quarterly dividend of only 7/ share on the class B stock as against 15c. a share at the previous quarterly period and 25e. a share six months ago. The Consolidated Retail Stores, Inc., omitted its quarterly dividend on the8% cumuh pref. stock, and the Keith-Albee-Orpheum Corp. omitted the quarterly dividend due Jan. 1 on the 7% cumul. cony. pref. stock. On the Stock Exchange 276 stocks dropped to new low levels for the year during the week. The call loan rate on the Stock Exchange ruled at 3% on Monday and Tuesday, but advanced 2% on Wednesday for new loans, after renewals 1 to 3/ had again been effected at 3%. On Thursday the 2% rate was maintained, both in the case of 1 3/ renewals and of new loans. Trading has been on a fairly large scale. The Stock Exchange, in addition to being closed on Friday of last week, Christmas Day, was also closed on Saturday. On Monday the sales on the New York Stock Exchange were 2,003,040 shares; on Tuesday they were 2,439,895 shares; on Wednesday, 2,112,067 shares; on Thursday, 1,508,700 shares; Friday was New. Year's Day and a holiday. On the New York week affair, has tame a been this market The stock with the fluctuations, as a rule, quite narrow. Holi- Curb Exchange the sales on Monday were 447,053 days have shortened the period of trading, the Stock shares; on Tuesday, 593,737 shares; on Wednesday, Exchange having been closed last Saturday, in ad- 751,713 shares, and on Thursday, 510,831 shares. As compared with Thursday of last week, prices dition to the Christmas holiday the day before, and the Exchange yesterday having also been closed, it show no great changes as a rule. General Electric 2on Thursday 1 having been New Year's Day and a holiday. On closed on Thursday at 25 against 24/ against 32%; 33% at North week; American last of prethe from period Monday, after the long holiday 4 / 1 Gas Standard ; 33 against 34 Gas at Elec Pacific & in was drift steady prices lower, the Thursday vious liquidation being in process, even if not of an over- & Elec. at27% against 28; Consolidated Gas of N.Y. 8 against 59%; Columbia Gas & Elec. at 13 whelming character. The selling was referred to as at 601/ 2bid against 1 having been very largely for the purpose of establish- against 13; Brooklyn Union Gas at 75/ ing losses in the income tax returns. On Tuesday, 7514; Elec.Power & Light at 10% against 11;Public however, the selling pressure appeared to have been Service of N. J. at 54% against 53; International in large measure removed, while at the same time Harvester at 24 against 24; J. I. Case Threshing 8 against 40; Sears, Roebuck & Co. / a better tone was observable in the bond market. The Machine at 407 improvement continued on Wednesday, notwith- at 33 against 32%; Montgomery Ward & Co. at 7% standing further sales for income tax purposes. A against 7%; Woolworth at 40 against 391/8; Safeway stimulating influence on that day was the circum- Stores at 43% against 41%; Western Union Telestance that not only did the bond market continue graph at 381/2 against 42; American Tel. & Tel. at to manifest a good tone, but United States obliga- 116% against 115%; Int. Tel. & Tel. at 8% against tions, which previously had displayed a weakening 81/ 8; American Can at 60 against 61%;United States tendency,showed a rallying tendency which did duty Industrial Alcohol at 26% against 26; Commercial in carrying the whole range of prices moderately Solvents at 8% against 77 /8; Shattuck & Co. at 934 higher. The stiffening of money rates which devel- against 10%, and Corn Products at 41% oped at the same time was without much influence against 39%. Allied Chemical closed on Thursday at68% against on prices one way or the other. There were no trade developments of much conse- 66% on Thursday of last week; E. I. du Pont de quence during the week, and, as a matter of fact, Nemours at 551/2 against 54; National Cash Register business men were largely engaged in inventory tak- at 8% against 73%; International Nickel at 7% 2; Timken Roller Bearing at 18% against 1 ing, it being the closing week of the year. Steel pro- against 7/ Trucks at 14% against 12%;Yellow Truck Mack engaged 19; mills with higher, trifle mere duction was a to about 22% of capacity as compared with the ex- & Coach at 3% against 3%; Johns-Manville at 17% traordinary low figure of 21% the week before. On against 1714; Gillette Safety Razor at 12% against 8 against 23; / Thursday the market was largely of a holiday char- 11%; National Dairy Products at 227 acter, with the movement of prices upward,although Associated Dry Goods at 734 against 6%;Texas Gulf a week ago. Altogether the grand total of the bill and security holdings, which together constitute a measure of the volume of Reserve credit outstanding, have been raised during the week in amount of, roughly, $228,000,000, the aggregate the present week being reported at $2,185,216,000 as against $1,957,221,000 a week ago on Dec. 23, and comparing with only $1,351,852,000 a year ago on Dec. 31 1930. As it happens,the amount of Federal Reserve notes in circulation, which has been almost uninterruptedly rising for a long time, the present week shows some contraction, the total having fallen from $2,661,206,000 Dec. 23 to $2,613,104,000 Dec. 30. However,a year ago the aggregate of Federal Reserve notes afloat was almost a billion dollars less, the aggregate then standing at no more than $1,663,538,000. Gold reserves have increased somewhat during the week, the total having risen from $2,980,861,000 Dec. 23 to $2,987,564,000 Dec. 30, but this was not sufficient to offset the increase in deposit and Reserve note liabilities; consequently the ratio of reserve to deposit and Federal Reserve note liabilities combined has suffered a further large reduction. The drop in ratio has been from 64.4% Dec. 23 to 61.9% Dec. 30. In view of this there is no denying that the Federal Reserve banks now find themselves in a very extended condition. This is very plain from the fact that with aggregate deposits of$2,480,109,000 no less than $2,185,216,000 has been either loaned out or invested in securities. Foreign bank deposits have been substantially reduced during the week, the amount having dropped from $107,823,000 to $77,259,000. 6 FINANCIAL CHRONICLE [Von. 134. • Sulphur at 223 / 4 against 221/ 4; American & Foreign relief in London and Paris, as in New York,over the Power at 7 against 7%; General American Tank Car passing of the disastrous year with its numerous at 31 against 30; United Gas Improvement at 18/ 1 2 perplexing developments. Even as the year drew against 18%; National Biscuit at 40% against 39%; to its close, further incidents were reported from Coca Cola at 107 against 105%; Continental Can at Europe that hardly seem to fit into the modern 34/ 1 2against 33%; Eastman Kodak at 821/ 4 against world. A new commercial treaty based upon barter 81; Gold Dust Corp. at 17/ 1 2against 177 /8; Standard was said to be under negotiation by representatives Brands at 133 / s against 12%; Paramount Publix of the Swedish and Persian Governments. In YugoCorp. at 7 against 6%; Kreuger & Toll at 51/s against slavia it is an almost daily occurrence that owners 4%; Westinghouse Elec. & Mfg. at 23/ 1 4 against 25; of cattle leave them masterless in the market stalls, Drug,Inc., at 53/ 1 4against 51; Columbian Carbon at since they are unable to feed them and there are no 34 against33%;Amer.Tobacco at 69/ 1 4against 63½; purchasers. In Hungary also, livestock has been ofLiggett & Myers class B at 477 / 8 against 45; Rey- fered unsuccessfully. That there are strengths as nolds Tobacco class B at 35% against 331/ 2; Loril- well as weaknesses in the situation is shown, however, lard at 13 against 12'/ 78, and Tobacco Products class by renewed assurances that Holland and Belgium A at 7 against 67 have every intention and the necessary resources to / 8. The steel shares have moved with the general mar- remain on the gold standard. Preliminary calculaket. United States Steel closed on Thursday at 38% tions of the trend of securities prices on the London against 37% on Thursday of last week; Bethlehem Stock Exchange show that there has been a decline Steel at18% against 18%;Vanadium at 13/ 1 4against during the last twelve months of nearly 14%. This 12%; Crucible Steel at 24 against 23/ 1 4,and Republic is probably representative of the Continental trend Iron & Steel at 5 against 4%. In the auto group as well. Trade reports from Europe at the year-end Auburn Auto closed on Thursday art 131 against 130 remained dismal, no genuine indications of improveon Thursday of last week; General Motors at 22% ment being discernible as yet. All attention was against 22%; Chrysler at 14 against 131%; Nash centered this week on the reparations and debt negoMotors at 17/ 1 2against 151/ 8;Packard Motors at 41/ 8 tiations, as the outcome of the discussions will naturagainst 4; Hudson Motor Car at loy8 against 10/ 1 4 ally prove exceedingly important for world trade in bid, and Hupp Motors at 4% against 4/ 1 4. In the this and coming years. rubber group Goodyear Tire & Rubber closed on Business on the London Stock Exchange was exThursday at 19 against 14% on Thursday of last tremely quiet, when trading was resumed Monday week; B.F. Goodrich at 4 against 334;United States after the Christmas holidays. The general tone was Rubber at 37 / 8 against 3%, and the preferred at 8 firm, however, notwithstanding some weakness in against 8/ 1 2 . sterling exchange. British funds were well supported The railroad shares have moved irregularly owing and closed fractionally better. In the industrial to the poor character of the returns of earnings for market also prices were steady, both British and the month of November and the lack of progress in international stocks showing small gains. Activity getting a reduction in wages. Pennsylvania RR. increased slightly, Tuesday, but the trend was unclosed on Thursday at 18% against 18% on Thurs- certain. British funds continued their advance in the day of last week; Atchison Topeka & Santa Fe at 85 early dealings, but lost most of the gains at the end. against 83/ 1 2; Atlantic Coast Line at 28 against 31; Home rail stocks were steady and most of the inChicago Rock Island at 9 against 97 /s; New York dustrial shares also registered little change. The Central at 29 against 28%; Baltimore & Ohio at Anglo-American list improved. Cheerfulness was 15/ 1 4 against 16/ 1 4; New Haven at 20/ 1 2against 20½; general Wednesday, virtually all groups of issues Union Pacific at 71/ 1 2 against 73½; Southern Pa- advancing in active dealings. British funds were cific at 27% against 277 / 8; Missouri-Kansas-Texas at dull at the start, but moved forward in later deal45/s against 434; Missouri Pacific at 7 against 7%; ings. In the industrial list a number of small imSouthern Railway at 7/ 1 2against 7½; Chesapeake 8z provements appeared, while international trading Ohio at 28% against 26%; Northern Pacific at 157 / 8 favorites also moved forward. The trend Thursday ex-div. against 16, and Great Northern at 17/ 1 2 was exceptionally favorable in the gilt-edged list, against 18/ 1 4. while other groups also advanced. The oil shares have not changed greatly. StandLight trading on the Paris Bourse marked the reard Oil of N. J. closed on Thursday at 277/s against sumption of business there, after the three day holi26% on Thursday of last week; Standard Oil of day. The tendency was good, however, and stocks Calif. at 25 against 241/ 8; Atlantic Refining at 93/s advanced quite generally, with bank shares leading against 9%; Freeport-Texas at 16% against 163 / s; the advance. Prices continued to move upward,TuesSinclair Oil at 4% against 4½; Texas Corp. at 12 day, although business was again restricted. The against 11; Phillips Petroleum at 4% against 4/ 1 2, satisfactory tone was maintained all day and prices and Pure Oil at 4/ closed at their best levels. Reports that Britain and 1 4 against 37 / 8. The copper stocks also are very little changed for France would see eye to eye on the reparations and the week. Anaconda Copper closed on Thursday at debts questions influenced the market favorably. 97 / 8 against 10/ 1 4 on Thursday of last week; Kenne- The advance was resumed with vigor, Wednesday, cott Copper at 11/ 1 4 against 11%; Calumet & Hecla and gains were substantial despite some profit-tak. at 3% against 3%; Phelps Dodge at 7 against 7; ing at the close. Improved prospects in regard to American Smelting & Refining at 18% against 18%, the negotiations with England occasioned further and Cerro de Pasco Copper at 12/ buying, and the entire list moved forward. An irreg1 4 against 13%. ular tendency was reported Thursday, partly as a In the final trading sessions of 1931 on the im- result of profit-taking. portant European securities markets a measure of cheerfulness prevailed, and quotations moved upDiscussions among the leading European Governward quite generally. There was a distinct feeling of ments on the reparations and debts questions were JAN. 2 1932.] FINANCIAL CHRONICLE hastened this week, and arrangements have already been made for a meeting at Lausanne, Switzerland, later this month, in order to consider the findings of the Advisory Committee, which were submitted formally on Christmas Day. The conversations regarding procedure were apparently carried on chiefly between the British and French Governments, and it would appear that every requirement of the Young Plan will be rigorously observed. The Bank for International Settlements was organized under a special enactment of the Swiss Government to administer the Young Plan, and in observance of proprieties the Swiss Government is now to be asked to issue invitations to the projected conference of governments. Great Britain took the initiative, Wednesday, by requesting the Governments of France, Belgium, Italy, Japan, Greece, Rumania, Yugoslavia, Poland, Czechoslovakia and Portugal to propose to the Swiss Government that the conference open at Lausanne on Jan. 20. There is a possibility that the date will be advanced to Jan. 18, London dispatches indicate, as Britain is anxious to have it start as far as possible in advance of the League Council meeting on Jan. 25 and the general disarmament conference on Feb. 2. The report of the Advisory Committee was carefully studied this past week, and it is apparent that the coming negotiations will be based almost entirely upon the findings of this body of experts. The committee held, briefly, that the state of German economy will not permit the Reich to resume payment of conditional annuities when the Hoover year of suspension of intergovernmental debt payments ends next July. It was further asserted that the economic stability of the world can be re-established only by an adjustment, through common accord and without delay, of all reparations and other war debts. Although an opening was thus left for the reconsideration of the debts owed by the former Allied Governments to the United States, it is now believed that the coming conference will be confined strictly to German reparations. In view of the attitude of the American Congress, it is assumed in Britain, a London dispatch of Wednesday to the New York "Herald Tribune" said, "that the most the conference will be able to accomplish will be an agreement to extend the moratorium on Germany's conditional annuities for two years, possibly three, beyond the end of the Hoover moratorium year." This means,it was added, an abandonment by the British Government, for the time being,of its hopesfor immediate and final settlement of what it considers to be the related questions of reparations and war debts. The conference is likely, therefore, to uphold the French contentions that the principle of the Young Plan must be respected during any prolongation of the moratorium, and that Germany must make payments in marks of the unconditional portion of reparations, such sums to be returned to the Reich in the form of loans, in continuance of the current plan. Among the political leaders of the world, Prime Minister MacDonald of Britain was the first to express an opinion on the report of the Advisory Committee, when that document was made available last week. "The report shows quite plainly," he said, "that the governments ought to meet without a day's unnecessary delay. The British Government is perfectly ready. For God's sake, let us meet at once." Chancellor Heinrich Bruening of Germany remarked to a group of press correspondents in Berlin that the experts at Basle had performed a great service to the world by establishing the fact that the Young plan is inadequate. He cautioned his countrymen against too great optimism, saying that the new report is at most a "first step" in the German Government's reparations revision policy. It was understood in London and Paris, according to press reports from both centers, that the procedure of the British and French Governments wab carefully considered in the course of protracted conversations in the French capital between Sir Frederick Leith-Ross of the British Treasury' and the French Finance Minister, Pierre Etienne Flandin. "It is believed that the British envoy originally proposed a five-year moratorium," a Paris dispatch to the New York Herald Tribune said, "but this was opposed 'by M. Flandin on the ground that it would contravene the Young plan provisions. It was urged on behalf of the French viewpoint that the present economic depression was unlikely to require such a long extension of relief." There were a number of reports from European centers that the United States Government would be asked to participate in the coming conference on reparations, but it may be assumed that these were in the nature of trial balloons. It was established rather definitely last Saturday that this Government would take no part in the conference, notwithstanding the indications that the delegates will insist that reduction or elimination of reparations hinges chiefly upon a revision of debts due the United States. The conference, it was held, will be concerned solely with the reparations question, and since the United States Government has no official interest in reparations attendance at the meeting is considered needless. Under-Secretary of the Treasury Ogden L. Mills was asked Tuesday whether the United States would accept an invitation to the parley, and he replied: "No, I doubt it very much. There will be no trips to Europe this winter." A preliminary conversation on the reparations and debt questions was considered for a time by Prime Minister MacDonald and Premier Laval, announcement being made in Paris last Sunday that M. Laval had received an invitation for such a parley from Mr. MacDonald. Although it was stated that M. Laval would welcome the opportunity for a personal exchange, no further comments have been made on this matter, and it is quite possible that the project will be quietly dropped. Regulations governing the importation of all classes of merchandise produced by forced or indentured labor in foreign countries were issued by Secretary of the Treasury Andrew W. Mellon last week and made effective yesterday. The ruling dispelled the widespread impressions in some countries that a virtual embargo would be placed on imports from Russia, beginning Jan. 1. The announcement by Secretary Mellon was of general interest, owing to the questions raised early last year regarding imports of Russian lumber and manganese. It was established at the time that convict labor was employed in the district of European Russia north of the sixtieth degree of latitude, and importers of Russian lumber have since been required to show that the shipments were the product of free labor. The regulations now issued by the Treasury Department, which cover the administration of Section 307 of the Tariff Act, provide for investigation 'by the Commis- 8 FINANCIAL CHRONICLE sioner of Customs of any complaint that convict labor, or forced or indentured labor, is used in the production of merchandise in any locality in a foreign country. Importation of such merchandise is prohibited, provided it is produced in the United States in sufficient quantities to meet the consumptive demands of the United States. In making these regulations public, Treasury officials stated,a Washington dispatch to the New York "Times" said that no blanket embargo would be placed against commodities from particular sections and that action to exclude imports would be taken only after careful investigation of complaints. The officials also called attention to the fact that commodities produced by forced or indentured labor are not excluded if this country does not produce them in sufficient quantities for its own requirements. The products of convict labor are excluded whether or not they are produced here in sufficient quantities. Gold shipments from India on a very substantial scale are finding their way to Europe and to this country as a result of the abandonment of the gold standard in India and the establishment of a premium on gold. The movement is attracting increasing attention, partly because of its size and partly because of its unusual nature. Already, it is estimated ,some £22,000,000 of the precious metal has been shipped from India, and London reports indicate that more is leaving by every liner. According to one London estimate, quoted in a dispatch of last Saturday to the New York "Herald Tribune," as much as £75,000,000 may be shipped in 1932. The shipments, indeed, may prove of some importance in the sterling stabilization plans of the British Government. Most of the metal is shipped to London and resold there for export to the Continent. The movement of gold away from India is highly unusual, as the country has long been considered the treasure sink of the world owing to the tendency of its inhabitants to hoard precious metals. "It is a habit common to all classes, from prince to pauper," the "Herald Tribune" dispatch remarks. "Much of the gold is in the form of elaborate ornaments. Much of it is buried for safety. None is available as a basis for currency." Suspension of the gold standard, which followed in India immediately after the Bank of England took this action Sept. 19, resulted in a 40% premium on gold in terms of rupees, which have lost practically none of their internal purchasing power. "Indian holders are strongly tempted to sell their bullion," the dispatch continues,"and a host of enterprising dealers is traveling around the villages, pointing out the advantages of so doing. The gold so collected is melted into bars and shipped from Bombay to London. From the point of view of the Indian Government this movement has been a godsend. Every year the Government has to make large payments in London on account of interest on loan maturities and pensions. A sterling balance is being built up in London sufficient to meet the obligations for some time ahead. Thus, a £15,000,000 issue, at 2%, will be repaid on Jan. 15 when it becomes 51/ due." The importance of the gold movement to Great Britain is obvious, and it is rumored, the dispatch states, that the re-export of the metal is enabling the Bank of England to accumulate balances with which to repay the remainder of the £50,000,000 [VoL. 134. credit extended that institution by the Bank of France and the Federal Reserve banks last August. "The gold movement may have effects on the East which will indirectly assist the rest of the world," it is remarked. "Obviously, if Indian sellers of gold receive payment in rupee notes, there must be a considerable expansion of currency in India, which will tend to have an inflationary effect on prices. According to some accounts, cultivators are already encouraged to hold crops for higher prices, using the proceeds of gold sales to finance them. Another possibility is that the gold will, to some extent, be replaced by silver, which is also much favored for hoarding purposes, and which is now relatively cheap. This should make for a gradually increasing value of silver and do much to stimulate trade throughout the East." Japanese control of Manchuria was made virtually complete this week by the withdrawal of most of the Chinese regular troops from the city of Chinchow, which was the last stronghold of the deposed Manchurian War Lord, Chang Hsueh-liang, north of the Great Wall. The desire of the Japanese military faction for possession of Chinchow 'triumphed over the diplomatic considerations evoked by renewed protestations of the United States, British and French Governments, and the entire Manchurian problem now passes into a more peaceful but no less interesting stage. It is hardly to be assumed that the Japanese investment of Manchuria, so methodically carried out since Sept. 18, will prove temporary. There are, however, a number of questions of treaty obligations which necessarily arise, notably the possible conflict between the Japanese procedure and the Kellogg-Briand 'treaty outlawing war as an instrument of national policy. Whether Japan violated the nine-power treaty and the recent League Council resolution are also questions which, no doubt, will be debated with fervor. There is likewise the delicate matter of the Russian sphere of influence along and north of the Chinese Eastern Railway. These and other factors indicate that the Manchurian problem, which has agitated world politics for 30 years, will remain unsettled for some time to come, notwithstanding the bold and successful movement of Japan. For a time, late last week, it appeared that the Japanese movement toward the walled city of Chinchow might again be halted, owing to the diplomatic protests. After repeated warnings for the withdrawal inside the Great Wall of the last troops of Chang Hsueh-liang remaining in Manchuria, a sweeping military drive on Chinchow was started Dec. 21. The orders to halt this advance were issued Dec. 25, after presentation at Tokio the previous day of a memorandum in which the United States Government expressed apprehension lest an untoward incident develop at Chinchow. Similar representations were made in behalf of the British and French Governments. Much resentment was occasioned among the Japanese military leaders by the protests of the three powers, Tokio dispatches said, and the assertion made that outside intervention could not be allowed to interfere with Japan's purely defensive plans. Formal replies to the representations were made last Sunday, and although they have not been published their substance has been indicated, it is understood, in a lengthy statement by the Tokio Government. JAN. 2 193.] 11" Great emphasis was placed, in this document, on the necessity for maintenance of peace and order in Manchuria. In spite of Japanese wishes, it is remarked, the events of last September have created a new responsibility and a wider sphere of action for Japan. In self-defense, she assumed the duty of maintaining public order and private rights over a wide area. "Only if peace and order prevail," the Tokio Government contended, "can the country be safe either for Chinese or foreigners; in the absence of peace and order it is futile to speak of an open door and equal opportunity for the economic activities of all citizens." It was remarked that Chinese local authorities fled or resigned, almost without exception. Turning next to the activities of Chinese bandits, which furnished the occasion for the Japanese advance,- the statement holds that such bandit forces numbered 30,000 early in December, and,since they were well organized and equipped with machine guns and trench mortars, could not be distinguished from Chinese regulars. Some attention also was given to the extensive negotiations for the peaceful withdrawal of Chinese troops from Chinchow. "There is no prospect of obtaining any tangible result,owing to the want of good faith on the Chinese side," it was asserted. In these circumstances a general movement against the bandits was started and, if it is to achieve adequate success, will have to be continued to points west of the Liao River, the statement added. The operations west of the Liao River, or toward Chinchow, were resumed promptly last Sunday, and two main Japanese columns began to converge on the city. The Cabinet at Tokio gave its approval and Emperor Hirohito his sanction, last Monday, to the dispatch of additional troops to Manchuria, and reinforcements were quickly sent from Korea and from Japan. Early this week, a Mukden dispatch to the Associated Press said, the complete Japanese strength in Manchuria was estimated at 20,000 men. "These figures are a closely guarded secret," the report remarked, "but the Japanese command no longer considers itself bound to keep the total below the treaty figure of 16,000." The movement was carried on steadily, and a number of smaller towns and cities between Mukden and Chinchow fell into the hands of the Japanese columns. Under the imminent threat of an attack on Chinchow, where the regular troops of Chang Hsueh-liang were stationed, withdrawal of the forces inside the Great Wall of China was ordered Wednesday by Marshal Chang. Japanese airplanes were hovering over Chinchow as trainloads of Chinese troops began to depart for Lanshan, on the southern side of the Great Wall. A denial of reports that Japan intends to take Manchuria and transform it into a second Korea was made, Monday, by the Japanese Premier, Ki Inukai. "Japan would not take Manchuria as a gift," he said. "We could not, in the first place, afford the expense of maintaining a frontier guard, and it would cost too much, moreover, to establish a formal administration. In fact, if China would offer Manchuria .to us we would decline the offer with thanks. If, for argument's sake, Manchuria were our territory to-day, we would give it to China and ask nothing in return. China can keep Manchuria with our compliments." Assurances were given by the Premier that Japan intends to maintain the "open door" in Manchuria. The State Department in Washington awaited further developments this week before mak- ; I I ing new diplomatic representations to Tokio. The protest transmitted last week, a Washington dispatch to the New York "Times" said, was understood to have been made with the object of emphasizing the American position in the diplomatic record that is being written in the Far East, as against the day when a permanent solution of the Manchurian problem will be achieved. The Government crisis in China which developed several weeks ago now appears well on the way to settlement through the formation of a coalition regime in which the Northern and Southern factions of the Kuomintang, or Nationalist party, will be about equally represented. Resignation of former President Chiang Kai-shek on Dec. 15 was followed by prolonged conferences between the Nanking leaders and the delegates from Canton, and by the resignation of the entire Nanking Cabinet on Dec. 22. The crisis represented the triumph of the principles proclaimed by the Canton group, which displayed relentless opposition to General Chiang's occupancy of the presidential office. The former President departed from Nanking in his $90,000 American airplane last week, and "retired" to his native city of Fenghua, in Chekiang Province. In the new Government, announced at Nanking last Monday, Lin Sen will be the Chairman of the State Council and will thus be the titular President of China, with powers corresponding approximately to those of the President of France. Sun Fo will hold the central power as President of the Executive Yuan, a post that is equivalent to that of Premier. General Chen Ming-shu, commander of the military forces in the Shanghai-Nanking area, was named Vice-President of the Executive Yuan. General Chiang Kai-shek will remain a member of the Central Executive Committee of the Kuomintang. Other members of the Government, as announced Monday, are as follows: President of Legislative Yuan—Yuen Chang-Chl. Vice-President—Chen Cheng. President of Examination Yuan—Tai Chl-Tao. Vice-President—Ling Lung-Sun. President of Control Yuan—Yu Yu-Jen. Vice-President—Ling Wel-Feng. President of Judicial Yuan—Wang Chung Hui. Vice-President--Chu Cheng. The list of Cabinet Minister, as announced Tuesday, follows: Minister of Foreign Affairs—Eugene Chen. Minister of Finance—Huang Han-Liang. Minister of Communications—Chen Ming-Hsu. Minister of Rallways—Yeh Kung-Cho. Minister of War—General Ho Ying-Chin. Minister of the Navy—Admiral Chen Hsuo-Kuan. Minister of Education—Chu Chia-Hua. Minister of Justice—Dr. Lo Wen-Kan. Minister of Home Affairs—Li Wen-Fan. Minister of Industry—Chen Kung-Po. With the arrival of Mahatma Mohandas K. Gandhi at Bombay, Monday, on his return from the Indian Round Table Conference in London, a further critical period in Indian history opened, as the events of the next few weeks will probably determine whether the Nationalist leaders will attempt to resume their campaign of civil disobedience. Before leaving England Mr. Gandhi made encouraging statements to the effect that there was little likelihood of further non-co-operation. The British Government proceeded, meantime, with its plans for pushing Constitutional reform in India, appointing the members of three committees which are to work in India on details left unfinished at London. When the Nationalist leader arrived at Bombay he found considerable discord among his own followers and appar. 71 • ently some reason for reconsidering his ideas on civil disobedience, as expressed in London. In a speech to a group of adherents, Monday,'Mr. Gandhi uttered what was interpreted in some quarters as a threat to withdraw all co-operation from the Round Table Conference committees, unless the Government repeals restrictive ordinances recently enacted. If the ordinances were repealed, he would advise cooperation, he said,"but what I have learned after my arrival in Bombay leaves very little hope for co-operation unless I am to lose all sense of self-respect." Mr. Gandhi telegraphed to the Viceroy, Lord Willingdon, Tuesday, urging the repeal of the ordinances. These measures provide, a Bombay dispatch to the Associated Press said, for powers whereunder magistrates in the Bengal district may impose sentences of death or exile for life upon persons convicted of subversive acts against the Crown, political murder, or attempts at acts of terrorism. Arrests may be made without warrants, troops may be called in to aid the police, and citizens may be drafted for the maintenance of order. Lord Willingdon made clear the attitude of the Delhi Government in a speech before the European Association at Calcutta, Wednesday. "We are determined," he said, "to go ahead as rapidly as possible with the work of Constitutional reform, and that non-co-operation will not be permitted. Every measure will be taken to maintain order and to prevent any party from paralyzing the administration, whether its activities take the form of no-rent campaigns, or boycott of British goods as a political measure, or defiance of the laws of the country." The Viceroy expressed the hope that "even at this eleventh hour Mr. Gandhi will call a halt to his activities and will agree to co-operate with us with his powerful influence." There have been no changes this week in the discount rates of any of the central banks. Rates are 8% in Austria and Hungary; 7% in Germany, Por/ 2% in Spain and Ireland; tugal and Italy; 61 in Norway, Sweden, Denmark, Danzig and Czechoin Holland; 2/ slovakia, and in England; 1 2% in 2% in France and Switzerland. In Belgium, and 21/ the London open market discounts for short bills /8% as against 53 4@6% on on Thursday were 5%@57 Thursday of last week, and 57 /8@61 / 4% for three 4@6% the previous Thursmonths'bills as against 53 day. Money on call in London on Thursday was 514% At Paris the open market rate continues at 1%%,and in Switzerland at 134%. The Bank of England statement for the week ended Dec. 30 shows a loss of £4,547 in gold holdings, bringing the total held down to £121,348,721, in comparison with £148,271,371 a year ago. Circulation contracted £5,881,000 and so reserves rose £5,876,000. Public deposits fell off £6,909,000 while Other deposits increased no less than £55,735,850. Of the latter figure, £54,116,066 was for bankers accounts and £1,619,784 for other accounts. The reserve ratio is now as low as 18.45%, in comparison with 20.94% last week and 22.52% a year ago. Loans on Government securities rose £27,735,000 and those on other securities £15,291,131. The latter consists of discounts and advances, and securities which increased £13,753,990 and £1,537,141, respectively. The discount rate is unchanged at 6%. Below we furnish a comparison of the different items or five years: OL. A BANK OF ENGLAND'S COMPARATIVE STATEMENT. 1928. 1930. 1929. 1929. 1931. Jan. 4. Jan. 2. Dee. 31. Dec. 31. ODec.3 . Circulation a364,151,000 368,801,566 369,782,000 378,254,483 137,728,370 7,732,000 6,580,599 12,350,000 22,336,385 13,617,917 Public)deposits— Other deposits 166,738,813 168,608,558 147,819,829 122,046,438 142,730,261 Bankers accounts _126,397,730 132,449,330 110,297,026 84,016,042 Other accounts 40,341,083 36,159,228 37,522,803 38,030,396 Govt. securities__ -- 95,340,906 81,021,247 81,658,855 62,636,855 48,293,992 Other securities__ 64,903,466 72,652,624 60,184,105 64,707,716 91,716,288 Disct. & advances 27,290,602 48,962,458 42,170,602 47,745,162 Securities 37,612,864 23,690,166 18,013,503 16,962,554 Reserve notes & coin 32,197,000 39,469,805 36,332,000 35,035,050 34,324,877 Coin and bullion_ _121,348,72i 148,271,371 146,115,746 153,329,533 152,303,247 Proportion of reserve 24% 21 1546% to liabilities 18.45% 22.52% 22.68% 44% Bank rate 6% 3% 5% 44% 1928 a On Nov.29 the fiduciary currency was amalgamated with Bank of England note Issues adding at that time £234,199,000 to the amount of Bank of England notes outstanding. The French Bank statement for the week ended Dec. 24 records an increase in gold holdings of 417,477,969 francs. The total of gold now is 68,481,174,225 francs, in comparison with 53,577,608,974 francs at the corresponding week last year and 41,668,420,261 francs two years ago. Credit balances abroad reveal a large decline, namely 2,295,000,000 francs. Notes in circulation show an expansion of 1,020,000,000 francs, raising the total of notes outstanding to 83,546,961,975 francs. Circulation last year amounted to 76,436,267,485 francs and the year before to 68,570,806,215 francs. French commercial bills discounted rose 683,000,000 francs while the items of bills bought abroad, advances against securities and creditor current accounts decreased 729,000,000 francs, 78,000,000 francs and 1,020,000,000 francs, respectively. The proportion of gold on hand to sight liabilities stands this week at 60.57%, as compared with 53.17% last year and 47.26% the year before. A comparison of the various items for three years is furnished below: BANK OF FRANCE'S COMPARATIVE STATEMENT. Status as of Changes Dec. 24 1931. Dec. 26 1930. Dec. 27 1929. for Week. Francs. Francs. Francs. Francs. Gold holdings__ _ _Inc. 417,477,969 68,481,174,225 53,577,608,974 41,668,420,261 Credit bals. abed_Dec.2295,000,000 13,040,338,983 6,791,969,446 7,249,142,687 a French commer'l bills discounted_Inc. 683,000,000 7,070,760,102 8,428,824,458 8,624,828,727 bBills bought abedDec.729,000,000 8,460,522,267 19,384,400,248 18,693,058,912 Adv.aft. secure ___Deo. 78,000,000 2,716,086,812 2,900,671,985 2,521,380,291 Note circulation_ _Inc.1,020,000,000 83,546,961,975 76,436,267,485 68,570,806,215 Cred. curr. acme_ _Dec.1020,000,000 29,511,717,410 24,322,301,402 19,587,779,399 Propor, of gold on hand to sight lia60.57% 53.17% 47.26% 0.37% Inc. bilities a Includes bills purchased in France. b Includes bills discounted abroad. The Reichsbank's weekly statement dated Dec. 23, shows a loss in gold and bullion of 17,288,000 marks. The total of gold which is now 984,886,000 marks is the smallest figure recorded this year. The same item a year ago aggregated 2,215,597,000 marks and the year before 2,264,664,000 marks. Increases appear in reserve in foreign currency of 11.461,000 marks, in bills of exchange and checks of 3,122,000 marks, in silver and other coin of 7,944,000 marks, in investments of 8,000 marks and in other liabilities of 6,886,000 marks. Notes in circulation decreased 26,006,000 marks, reducing the total of the item to 4,512,131,000 marks. Total circulation last year stood at 4,275,312,000 marks and two years ago at 4,579,047,000 marks. A decrease is recorded in notes on other German banks of 520,000 marks, in advances of 45,903,000 marks, in other assets of 5,416,000 marks and in other daily maturing obligations of 27,472,000 marks. The proportion of gold and foreign currency to notes circulation at 25.6% this week compares with 25.6% the previous week and 64.4% a year ago. The item of deposits abroad remains unchanged at 126,600,000 marks. Below we furnish a comparison of the various items for three years: JAN. 2 1932.] FINANCIAL CHRONICLE REICHSBANK'S COMPARATIVE STATEMENT. Chances for Week. Dec. 23 1931. Dec. 23 1930. Dec. 23 1929. Assets— Retchsmarks. Reichstnarks. Rekhentarks. Retchstnark s. Gold and bullion Dec. 17,288,000 984,886,000 2,215,597,000 2,264,664,000 Of which dews. alo'cl. Unchanged 126,600,000 222,017,000 149,788,000 Reserve in foreign curr.Ino. 11,461,000 169,816,000 536,148,0 00 405,377,000 Bills of exoh.& checks_Ine. 3,122,000 3,795,297,000 2,008,460,000 2,568,710,000 Silver and other coin_ _Ine. 7,944,000 167,799,000 152,509,000 96,858,000 Notes on oth. Ger. bks _Dee. 520,000 6,922,000 15,784,000 14,740,000 Advances _Dec. 45,903,000 176,316,000 91,284,000 51,999,000 Investments Inc. 8,000 102,900,000 102,474,000 92,558,000 Other assets Dec. 5,416,000 861,277,000 479,532,000 603,323,000 LiabtlUtes— Notes in circulation_ Dee.26,006,000 4,512,131,000 4,275,312, 000 4.579,047,000 0th. daily matur.oblig.Dec. 27,472,000 406,640,000 451,279,0 00 448,354,000 Other liabilities Inc. 6,886,000 859,111,000 381,270,000 196,524,00 0 prawn..of gold & foreign curr.to note circulat'n No change 25.6% 64.4% 58.3% 11 months' bills, 33% bid, 3% asked; for five and six months, VA% bid and 3%% asked. The bill buying rate of the New York Reserve Bank remains unchanged at 3% on maturities up to 45 days, and at 3lA% on maturities of 46 to 90 days. The Federal Reserve banks show an increase this week in their holdings of acceptances, the total having risen from $257,351,000 to $326,975,000. Thier holdings of acceptances for foreign correspondents further increased from $238,648,000 to $248,529,000. Open market rates for acceptances are as follows: SPOT DELIVERY —180 Daus— —150 Doss— —120 Daps— BM Asked. Bid. Ailed. Rid. Asked. Prune eligible bills 334 3% —90Doti— —60Days-- —30Dere— /MI. Asked. Bid. Asked Bid. Aided. Prime eligible. MID 3 314 334 3 3 334 FOR DELIVERY WITHIN THIRTY DAYS Eligible member banks 314 btd NUMe non-member banks 314 WI A modest advance in money rates marked the final dealings of 1931 on the New York market, this tendency being natural and customary in view of the extensive preparations for the year end turnover. Call loans on the New York Stock Exchange were 3% Monday and Tuesday. After renewals were arThere have been no changes this week in the redisranged at the same figure Wednesday, new loans count rates of the Federa l Reserve Banks. The were advanced to 33/2% late in the day. All trans- following is the schedu le of rates now in effect actions Thursday were at the 33/2% figure. There for the various classes of paper at the different were no offerings at concessions at any time in the Reserve Banks: unofficial outside market. Time loans were un- DISCOUN T RATEIll OF FEDERAL RESERVE BANKS ON ALL CLASSES changed. An illustration of the monetary trend also AND MATUR1T1Et• OF ELIGIBLE PAPER was afforded by the sale of $101,332,000 Treasury Rats In Erna Date Preview Pascal Referee Dank. discount bills, Monday, at an average discount of on Jan. 1. Established. Rate. 334% for the 91-day obligations. This contrasts Balton sg Oct. 171981 234 New York 834 008. 18 1931 2)4 Philadelphia with a rate of 2.59% on a $100,000,000 issue sold Cleveland 834 Oct. 22 1981 a 334 Oct. 24 1981 8 4 Oct. 20 1931 Nov. 27, and a figure of 2.28% on $60,000,000 Richmond 3 Atlanta 834 Nov. 14 1931 3 Chicago Oct. 17 1931 834 discount bills awarded Nov. 20. The trend has been St. Louie 234 Oct. 22 1981 834 234 is Sept.13 1930 334 4 steadily upward since last summer, when the Treasury Minneapol Kansas City 334 Oct. 23 1931 3 Dallas 4 Oct. 21 1931 3 was able to sell an issue of $50,000,000 bills at the Ian Francisco 334 Oct. 21 1931 234 record low figure of 0.46%. The aggregate of brokers loans against stock and bond collateral again Sterling exchange is extremelyinactive, as are al declined this week, the compilation of the Federal the exchanges at this season . The volume of trading, Reserve Bank of New York for the week to Wednes- however, assumed greater proportions on Wednesday day night showing a decrease of $20,000,000. Gold and Thursd ay. On Friday of last week, Christmas movements for the same period reflected a consider- Day, there there was no market anywhere. Saturable outward flow of the metal. Exports amounted day last was also a holiday in London and in most to $15,760,000, while imports were $3,545,000. of the Europe an centres, so that there were no cable There was also an increase of $12,892,000 in the communicatio ns with London and the market in New stock of the metal earmarked for foreign account, York was largely nominal. On Friday, New Year's this change being equivalent to an export. Day, all markets were closed and most of the year-end Dealing in detail with call loan rates on the Stock transfers were concluded on Wednesday and ThursExchange from day to day, 3% was the ruling quota- day. The range this week has been from 3.37% 3 to tion on Monday and Tuesday, both for renewals and 3 3.4332 for bankers' sight bills, compared with 3.37% for new loans. On Wednesday, after renewals had to 3.43% last week. The range for cable transfers again been effected at 3%, the rate for new loans has been from 3.38 to 3.44, compared with 3.383( to was advanced to 332%, which also was the rate on 3.44 last week. The market expects to see greater Thursday for all call money, including renewals. activit y next week as a seasonal factor. After Jan. 15 Time money is still inactive, and the market for this under normal conditions seasonal influences should class of accommodation is practically without move- favor firmer quotations for sterling exchange. The ment. Rates are unchanged at 3@4% for all dates. influences favoring steeling should then continue until These quotations are nominal, however, as each about the end of August. In financial markets in transaction is given special attention. The deman d London there is a feeling of greater cheerfulness. for prime commercial paper has been extremely light The passing of the moratorium bill by the United this week and while there has been very little paper States Senate reacted favorably both on sterling and available, the supply has been adequate for all re- on the market generally. A considerable decline requirements. Rates are unchanged. Quotations for ported in the number of unemployed in England was choice names of four to six months' maturity are also taken as an encouraging development. 33 4@4%%. Names less well known are 432%. On -Currently sterling exchange has received suppor t some very high class 90-day paper occasional trans- from the execution of arrangements whereby the actions at 332% continued to be noted. Argentine Government will pay the £1,250,000 in The market for prime bankers' acceptances has London to Baring Brothers due on Dec. 31. On that again been very slow this week. The small supply date the Government note of £2,500,000 fell due and of paper has proved sufficient to meet all demands. an agreement was reported to have been reached Rates remain unchanged from last week. The quota- whereby one-half was to be paid on the due date and , tions of the American Acceptance Council for bills delivery made on non-renewable Treasury bills to up to 90 days are 31 4% bid, 3% asked; for four cover the remaining £1,250 ,000. The latter sum is in 12 FINANCIAL CHRONICLE [VoL. 134. market was easier but slightly more active. The the form of five different notes of £250,000 each,which was 3.38%@3.39% for bankers' sight and will be discounted at the rate of 63/2% per annum range 3.3938@3.403i for cable transfers. On Thursday plus a flat commission of 3 of 1%. The bills will ® the market was again easier. The range was 3.37% mature on Feb. 15, April 15, May 14, June 15 and cable 1 for bankers' sight and 3.38@3.393/ for 4 July 15. The sterling necessary to meet the £1,- 3.39 rs. On Friday, New Year's, there was no transfe 250,000 cash on Dec. 31 is understood to have been market. Closing quotations on Thursday were obtained in New York, where a better market exists for demand and 3.393j for cable transfers. for sterling than in Buenos Aires. Under ordinary 3.389-i cial sight bills finished at 3.38, 60-day bills Commer conditions the purchase of £1,250,000 at this season at 3.34, 90-day bills at 3.32, documents for payge, exchan to would not be sufficient to give firmness ment (60 days) at 3.34, and seven-day grain bills but the. market has been so thin recently that these 8 Cotton and grain for payment closed at 3.37%. accumulations had the effect of forcing the rate above 3.38. levels justified by the general market. Gold con- at tinues to sell at a premium in London. The price this Exchange on the Continental countries presents no week ranged from 120s. to 121s. 11d. This week the features of importance. Of course the Continnew 48Bank of England shows gold holdings of £121,3 are as a seasonal matter exceptionally quiet entals week last 721, which compares with £121,353,268 of the Christmas and New Year's holidays. result a as 1930. and with £148,271,371 on Dec. 30 g French francs weakened sharply At the Port of New York the gold movement for In Tuesday's tradin %for cable transfers, thus removing the possithe week ended Dec. 30, as reported by the Federal to 3.913 further exports of the metal to France for the Reserve Bank of New York, consisted of imports bility of The market in this exchange has been thin of $3,545,000, of which $1,569,000 came from India, time being. and the occasional gold shipments weeks $1,054,000 from Cuba, $317,000 from Mexico, for some made from New York to France, been have which $270,000 from England, $185,000 from Straits Settlee, served to thrust the rate ments and $150,000 chiefly from Latin American have, in each instanc gold coming to the London of the countries. Gold exports totalled $15,760,000, of below par. Most reshipped to Paris for French being is market open to ,000 , $3,880 France to which $8,951,000 was sent part of this gold is coming Holland, $2,811,000 to Belgium and $118,000 chiefly account. The greater and French takers are India, and to other European countries. There was an increase from South Africa 6d. to 121s. 11d., 119s. of rate the of $12,892,000 in gold earmarked for foreign account. paying for it at These gold takhigher nally fractio mes In tabular form the gold movement at the Port of and someti e in the gold increas the for t accoun to ue contin New York for the week ended Dec. 30, as reported by ings of France. This week the the Federal Reserve Bank of New York, was as holdings of the Bank Bank of France shows gold holdings of 68,481,174,225 follows: francs, which compares with 68,063,696,256 francs on GOLD MOVEMENT AT NEW YORK,DEC.24-DEC.30,INCLUSIVE. Exports. Dec. 17, with 53,577,608,974 francs on.Dec. 26 1930, Imports. 88,951,000 to France 81,569,000 from India and with 28,935,000,000 francs following the stabili3,880,000 to Holland 1,054,000 from Cuba Belgium to 2,811,000 Mexico 317,000 from zation of the unit in June 1928. 118,000 chiefly to other 270,000 from England countries European German marks continue to be more or less a 185,000 from Straits Settlements 150,000 chiefly from Latin l market owing to the severe restrictions on nomina American countries exchange and financial operations in Germany. At 815,760,000 total $3,545,000 total present the mark shows a slightly easier tone so far Net Change in Gold Earmarked for Foreign Account. as the nominal quotations are concerned, but this is Increase $12,892,000. e to the highly inactive state of On Thursday gold exports were $3,198,400 of due in large measur season. General satisfaction is this at which $90,000 was reported as additional sent to the market bankers as to the early date York New by sed expres Holland on Wednesday, $2,543,400 was shipped to nces on reparations folconfere mental govern for set Switzer Belgium, $495,000 to Holland and $70,000 to of the advisory committee of the land. There were no imports but there was a de- lowing the report International Settlements, which concluded crease of $3,351,300 in gold earmarked for foreign Bank for at Basle a few days ago. Local bankers account. Yesterday being a holiday (New Year's its labors the hope that concrete results will come Day), there were no reports on the gold movement. expressed mental conference. It has long been govern the During the week approximately $15,433,000 of gold from g circles that the whole question bankin in d has been received at San Francisco, of which $14,- claime war debts involving the transfer and ions reparat of from 946,000 came from Japan and $487,000 came of huge annual sums not based on regular commerce Australia. capital movements originating in business needs Canadian exchange shows practically no improve- or on of the fundamental factors contributing ment and Montreal funds are at a heavy discount. has been one ion: The potentialities of On Saturday last Montreal funds were at a discount to the business depressrs were clouded during the 4%, on Monday at 18%%, on Tuesday at these abnormal transfe / off181 extreme prosperity, but their cumu18%%,on Wednesday at 17%% and on Thursday at recent period of is contended, resulted in a strain it , lative effects 16%%. system of the world. credit entire Referring to day-to-day rates sterling exchange on on the that the necessity of mainassert s banker Some Saturday last was dull owing to a holiday in London. abnormal trade export surpluses in order to Bankers' sight was 3.43@3.4332; cable transfers taining Germeet political debts, as has been the case with 3.4332 4)3.44. On Monday the market continued trade. of world ism mechan entire the has upset quiet, with an easier tone. The range was 3.413@, many, s in general are convinced that the Hoover Banker for Vg @3.43 3.41% 3.43 for bankers' sight bills and moratorium, while very helpful and a step cable transfers. On Tuesday a still easier tone one-year direction, does not provide a sufficient right 2; cable in the developed. Bankers' sight was 3.41@3.423/ on and that it will have On Wednesday the interval to correct the situati transfers 3.4131(4),3.43. JAN. 2 1932.] FINANCIAL CHRONICLE 13 to be prolonged. The Reichsbank statement for the reports represents actual metal held by that inweek ended Dec. 23 showed a severe loss in gold hold- stitution and does not include gold exchange. Foreign ings of 17,288,000 marks. Total gold holdings are bill holdings have been cut sharply from last year, now 984,886,000 gold marks. The ratio of reserves amounting to fl. 66,412,709, compared with fl. 247,to outstanding circulation is unchanged from Dec. 15 866,475 a year ago. Of the bank's total demand at 25.6%. This has been brought about by a slight liabilities not less than 73% is covered by gold. increase in the bank's reserves of foreign currencies of Bankers'sight on Amsterdam finished on Thursday 11,461,000 marks and by a decrease of 26,006,00Q at 40.11, against 40.13 on Thursday of last week; marks in circulation. Present gold holdings compare cable transfers at 40.12, against 40.14; and commerwith 1,002,200,000 marks on Dec. 15 and with cial sight bills at 39.80, against 40.05. Swiss francs 2,215,597,000 marks on Dec. 23 1930. It is fre- closed at 19.523/ 2 for checks, and at 19.53 for cable quently stated in press dispatches that more countries transfers, against 19.53 and 19.533/ 2. Copenhagen will go off the gold standard, following the example checks finished at 18.70 and cable transfers at 18.75, of England and the Scandinavian countries. These against 18.95 and 19.00. Checks on Sweden closed dispatches are as frequently emphatically denied. at 18.55 and cable transfers at 18.60, against 18.80 On Friday of last week Premier Renk of Belgium and 18.85; while checks on Norway finished at 18.90 stated in the Chamber of Deputies that Belgium and cable transfers at 18.95, against 19.05 and 19.10. would not abandon the gold standard, the Belgian Spanish pesetas closed at 8.453/ for bankers' sight franc being guaranteed against any attack. He bills and at 8.46 for cable transfers, against 8.47 stated that the gold covering of the franc note is and 8.47M. 65%. Moreover he pointed out that Belgium has no floating foreign debt and that Belgian banks did Exchange on the South American countries is not open credits with Germany. extremely inactive. All are hampered by interThe London check rate on Paris closed at 84.56 ference on the part of government exchange control on Thursday of this week, against 87.50 on Thursday offices. Most of the South Americans are only of last week. In New York sight bills on the French nominally quoted, with practically no transactions centre finished on Thursday at 3.923 %, against of any kind except surreptitious trading outside the 3.92% on Thursday of last week; cable transfers at law. Professor Edwin W. Kemmerer, of Princeton 3.923/ 2, against 3.923 4; and commercial sight bills University, returned to New York on Monday from at 3:923 %, against 3.92%. Antwerp belgas finished Lima,Peru, where he had attended a conference of the at 13.893/ for bankers' sight bills and at 13.90 for Central banks of Peru, Bolivia, Ecuador, Chile and cable transfers, against 13.94 and 13.943/ 2. Final Colombia. Professor Kemmerer said: "The conquotations for Berlin marks were 23.73 for bankers' ference dealt only with central bank problems. All sight bills and 23.75 for cable transfers, in com- the countries represented reaffirmed the use of the parison with 23.75 and 23.77. Italian lire closed at gold standard and passed resolutions pleading for 5.083 4 for bankers' sight bills and at 5.09 for cable greater world co-operation in maintaining its usage" transfers, against 5.093 and 5.0932. Austrian Peru and Ecuador, he said, are actually on a parity, schillings closed at 14.12, against 14.15; exchange but Colombia, Chile and Bolivia are only nominally on Czechoslovakia at 2.963/2, against 2.963/2; on on the gold standard. Advices from Buenos Aires Bucharest at 0.593/2, against 0.5932; on Poland at continue to discuss a temporary stabilization of the 11.25, against 11.25; and on Finland at 1.55, against,. peso at around 25.00, compared with the present 1.55. Greek exchange closed at 1.28% for bankers' par of the paper peso at 42.45. The stabilization, sight bills and at 1.28% for cable transfers, against it is admitted, is merely a de facto stabilization 1.28% and 1.283g. pending legal measures to make the level permanent, should events in the future indicate the wisdom of Exchange on the countries neutral during the stabilization de jure at this point. In the meantime war is for the most part inactive and presents no it is believed that the Government will limit note new trends from those displayed a week ago. The circulation to 1,200,000,000 paper pesos and at the Scandinavian currencies move nominally with the same time limit the minimum gold reserve to 250,variations in sterling. Guilders, the most active 000,000 gold pesos. On Dec. 14 the Argentine note of the neutral exchanges, have been ruling slightly circulation amounted to 1,212,675,832 paper pesos, easier, but this is believed to be due in large measure against which was a gold reserve of 269,326,878 to holiday interruptions to trade. Spot guilders are gold pesos and rediscounts of 315,830,223 paper reasonably steady around 40.12, but steady offerings pesos. With the new limit to the gold reserve the of futures have driven the future rate to a wide Government will have available, based on the discount from spot. Bankers report that no de- report of that date, 19,326,878 gold pesos (par of mand for futures is entering the market and that the gold peso is 96.48) for service on the external the steadiness in the spot rate is due principally to funded debt. This, it is estimated, will be sufcovering against forward transactions. No definite ficient to last for the next six months, but local reason is advanced for the course of the rate except banking circles do not believe that the Government the nervousness which has cropped up repeatedly will permit shipment of gold for service on State regarding the possibility that Holland may abandon obligations. This belief is based on the fact that the gold standard. These reports persist despite upon the exhaustion of the surplus stocks in the steady official denials. It is pointed out that the Caja de Conversion above the legal minimum, the gold position of the Netherlands Bank is extremely Government will be compelled to depend upon strong. Gold holdings on Nov. 30 amounted to pin chases of exchange in the open market, which fl. 901,153,814 and note circulation to fl. 1,050,- will complicate the pi oblem of holding the paper 772,165. A year ago the Netherlands Bank reported peso stable at 25.00. The probable course of events gold of fl. 426,135,392, against notes of fl. 854,- hinges largely upon the Argentine crops and world 998,730. The gold which the Netherlands Bank grain prices. Any improvement in the price of grain 14 will automatically provide the Government with more exchange and relieve the pressure upon the peso. Brazilian customs duties are now collected .entirely in gold and banking circles regard this as the first step toward the gradual building up of a Brazilian gold reserve which has been completely depleted through service on foreign obligations. The contemplated central bank of issue, as outlined by Sir Otto Niemeyer in his report on Brazil, will require a 30% gold reserve against notes in circulation and other demand liabilities. Argentine paper pesos closed on Thursday at 25 1546 for bankers' sight bills, against 25 15-16 on Thursday and at 26.00 for cable transfers, against 26.00. Brazilian milreis are nominally quoted at 5.95 for bankers' sight bills and at 6.00 for cable transfers, against 5.95 and 6.00. Chilean exchange is nominally quoted at 12%, against 12%. Peru is nominally quoted at 27.81, against 27.80. Exchange on the Far Eastern countries was featured this week by a sharp break in yen exchange on Monday, when the rate dropped to 37.25, a net decline of 3 cents on the day. The decline reduced the yen to the lowest price quoted since December 1924. Foreign exchange dealers made no attempt to explain the fresh weakness in the Japanese rate. The recent experience of the market with sterling exchange had demonstrated that once a currency is removed from the gold standard it is subject to wide fluctuations due solely to the play of supply and demand. Despite the placing of an embargo on gold exports, Japan has continued to send gold to this country and is expected to forward additional amounts to cover commitments in dollars entered into by the Government controlled Yokohama Specie Bank in its supporting operations prior to the embargo. In all main features the Far Eastern exchanges show no new trends from recent weeks. Closing quotations for yen checks on Thursday were 353, against 403i. Hongkong closed at 'FOREIGN EXCHANGE RATES CERTIFIED BY FEDERAL RESERVE BANKS TO TREASURY UNDER TARIFF ACT OF 1922, DEC. 28 1931 TO JAN. 1 1932, INCLUSIVE. Country and Monetary [VOL. 134. FINANCIAL CHRONICLE Noon Buying Rate for Cable Transfers fn New York. Value in United States Money. Dec. 28. Dee. 28. Dec. 29. Dec. 30. Dee. 31. Jan. 1. $ EUROPE.139593 Austria. echilling 139216 Belgium, belga 007150 Bulgaria. ley Czechoslovakia, loon .029627 .188676 Denmark, krone England, pound 3 433684 sterling 015862 Finland, markka 039263 France, Mine Germany. reichsmark 237609 012884 Greece, drachma 401191 Holland, guilder 174350 Hungary. pengo 050903 Italy. lira 187700 Norway. krone 111792 Poland, zloty 032175 Portugal, eeendo 005948 Rumania,leu 084627 Spain. peseta 190423 Sweden. krona 3wRzerland, franc.- _ .195266 higoelayla. dinar .017796 ASIA71ilna-Charon tael 348511 Ifankow tad! 339218 Shanghai toed 333303 Tientsin toe! 350208 Hong Kong dollar .251607 Mexican dollar_ __ _ .239375 Tientsin or Feiyang .243333 dollar .240000 Yuan dollar .256666 ndia, rupee 395714 apan, yen Ingapore (9.8.) doll .305625 NORTH AMER..816171 %nada, dollar 999300 lulu), pato &Nilo°. peso (silver) - .399733 .814000 fewtoundland. doll SOUTH AMER.rgentIna, peso (gold) .585722 061950 trazil, milreis 120500 %blle. Peso 446000 Fruguay. peso naaa00 Wnnnhla novn $ $ 8 $ .139464 .139521 .139392 .139581 .139276 .139184 .138907 .138928 .007116 .007150 .007150 .007150 .029630 .029627 .029625 .029626 .188294 .188911 .187805 .186970 3.424940 .015662 .039226 .237325 .012879 .401222 .174550 .050820 .187205 .111764 .031450 .005956 .084550 .190072 .195175 .017796 3.414642 .015743 .039158 .237530 .012876 .401040 .174670 .050855 .187588 .111881 .031450 .005954 .054495 .190435 .195057 .017793 3.391250 .015687 .039189 .237655 .012882 .400670 .174566 .050815 .186277 .111921 .031250 .005956 .084475 .189433 .194780 .017796 3.389404 .015687 .039225 .237436 .012878 .400850 .179633 .050700 .185470 .111921 .031250 .005950 .084517 .188941 .194960 .017787 .349166 .345833 .339687 .337187 .339607 .331964 .350833 .347600 .252535 .251071 .240000 .238125 .346666 .345433 .337187 .335937 .331607 .330892 .348333 .347500 .251071 .248392 .238750 .238125 .245000 .242500 .241666 .239166 .257800 .257750 .373781 .365000 .395000 .397500 .243333 .242500 .240000 .239166 .256458 .256041 .352687 .346071 .393750 .392500 .815330 .808897 .812757 .839705 .999300 .999300 .999300 .999300 .399733 .398966 .399033 .396100 .813000 .806750 .809750 .836500 .585473 .584835 .584921 .585190 .062092 .061878 .061893 .061807 .120500 .120500 .120500 .120500 .444333 .445166 .446000 .445166 oeiwon .965700 .965700 .96fi700 S HOLIDAY 25 5-16@25%, against 253 ,'@25 11-16; Shanghai at 3332, against 333g©34 1-16; Manila at 49%, against 49%; Singapore at 413', against 41%3: Bombay at 25%, against 26.00; and Calcutta at 25%, aga.nst 26.00. The following table indicates the amount of bullion in the principal European banks: Dee. 31 1931. Dec. 31 1930. Banks ofGold. 4 England- - 121,348,721 France a__ 547,849,394 Germany b 42,914,300, Spain 89,877,000 Italy 60,848,000 Netherrds. 75,583,000 Nat. Beg. 72,935,000, SwItzerrd_ 61,049,000 Sweden_ ._ 11,433,000 Denmark _ 8,015,000 Norway __ 6,559,000 Silver. Total. I Gold. Silver. i Total. £ E £ £ 4 121,348,721148,271,371 148,271,371 d d 547.849,394428,620,871 428,620,871 c994,600 43.908,9009.679,000 994.600100,673,600 20,705.000110.582,000 97,494,000 28,107.000125,601,000 60.848,000 57,275,000 57,275,000 2,327,000 77,910,000 35,516,000 2,054,000 37,570,000 ,000 61,049,000 25,611,000 25,611,000 11,433,000 13,401,000 13,401,000 8,015,0001 9,560,000', 9,560,000 6,559,000 8,136,000, 8,136,000 Tot. wk 1098411 415 24.026,600!1122438013i961.217,242 31.155.600992,372,842 Prey. week 1095803988 24,149,600 11199535884)61,320.857. 31.155,600992.476.457 a These are the gold holdings of the Bank of France as reported in the new form of statement. b Gold holdings of the Bank of Germany are exclusive of gold held abroad, the amount of which the present year Is £6,330,000. c As of Oct. 7 1924. d Silver is now reported at only a trifling BUM. The Basle Report and the Cotreng Conference on Reparations and War Debts. The report which the Basle committee of experts made public on Dec. 24, while in the main a product of the procedure which the Young Plan lays down, goes in fact considerably beyond the limited field of the Young Plan in some of its recommendations. The Young committee foresaw the possibility that.Germany, even under world conditions quite different from those that now obtain, might find itself unable to pay the conditional annuities which the Plan prescribes. They accordingly provided for the creation in such case, through the agency of the Bank for International Settlements, of a committee of experts which should inquire into the ability of Germany to pay. If the committee found that the payments could not be made, the findings were to be reported to the Governments concerned in reparations for such action as those Governments might see fit to take. • This task the committee have performed, and a consideration of the report will be the primary formal business of the conference which is expected to convene on Jan. 18. In concluding their report, however, the experts have gone farther, and have set out certain views and recommendations, based upon the economic and political situation in Germany and the world in general, which link together reparations and war debts, and have thereby virtually invited the conference to deal with both questions and not with reparations alone. The larger part of the report, naturally, is given over to an elaborate analysis of Germany's financial and business condition, particularly during 1931 down to the date of the report. The committee find that the recent heavy surplus of exports "Is in part the result of certain abnormal factors," among them the sale of goods,"in many cases at a loss," to obtain needed cash, some exceptional sales to Great Britain in anticipation of tariff duties, and a decline in imports due to unemployment,lower wages, high taxation, and a fall in the world price level. The committee are doubtful if this export surplus can be kept up in the face of hostile tariffs, import and export restrictions, exchange control measures, and competition occasioned by the depreciation of sterling and other currencies. On the other hand,"the decline of economic activity, the fall of profits resulting from the fall in prices, and the lower yield of the taxes on JAN. 2 1932.] FINANCIAL CHRONICLE 15 wages due to increased unemploymentand lower wage needed in a much wider field than that of Germa ny rates, have seriously reduced the yield of taxation." alone. ... The year 1931 has not yet ended, and alTo meet the decline in receipts from taxation, taxes ready the crisis has taken formidable dimens ions, have been greatly increased,at the same time that the shattering the exchanges of many countri es one after expenditures of the Reich "on all objects other than the other and accumulating difficul ties which, if service of the debt, transfers to the Federal States not dealt with, will only prove the foreru nners of external war burdens, and emergency unemployment further catastrophies." Further, the economic derelief," have been reduced 22% from 1929 to 1932. cline has produced "a general political instability "In view," however, the report continues, "of the from which an anxious world is sufferi ng more and measures taken in the four decrees relating to taxa- more"—a condition which has been aggravated by tion and expenditure issued in the last two years, the political considerations which have "often been and in particular in that of Dec.8, 1931, the commit- allowed to influence the treatm ent of economic probtee is of the opinion that the burden of taxation has lems by the Governments, thus preventing the latter become so high that there is no margin for a fur- from viewing these problems in their true light and ther increase." The receipts of the German Railway from dealing with them on their merits." Co. fell off 28% in 1931 as compared with 1929, and The report concludes by emphasizing three conin both 1930 and 1931 the surplus of receipts was siderations which the committee regard as "of great heavily below the amount which the railways must importance." "The first is that transfers from one contribute to the reparations payments. country to another on a scale so large as to upset Without attempting to examine all of the underly- the balance of paymen ts can only accentuate the ing causes of the present world-wide depression, the present chaos. It should also 'be borne in mind that committee note that the circumstances and condi- the release of a debtor country from a burden of paytions which have led to the present crisis are in part ments which it is unable to bear may merely have the peculiar to Germany and in part international. The effect of transferring that burden to a creditor counextreme fall in prices, unparallelled in any crisis for try, which,in its character as a debtor,it in turn may the past hundred years, "has deeply affected all be unable to bear. Again,the adjustment of all intereconomic activity." "The sharp reduction of the pur- governmental debts (reparations and other war chasing power of the large masses of consumers has debts) to the existin g troubled situation of the world involved in the last two years a reduction or the com- —and the adjust ment should take place without deplete disappearance of industrial profits, serious un- lay if new disaste rs are to be avoided—is the only employment and an uninterrupted slump in stock lasting step capabl e of re-establishing confidence.... exchange securities." The consequent banking crisis Finally, although the German Government is ener"has provoked a general lack of confidence and in- getically defending the stability of its currency,steps volved a withdrawal of foreign capital from countries are necessary to secure that these measures shall which hitherto have had the use of it;" the exchange have a permanent effect. " value of a number of currencies has been maintained It should be observed that while the report is silent on a nominal basis only by government decrees or on the specific question of the unconditional part of the partial suspension of foreign payments; a fresh the Germa n annuities—a subject which the commitdisturbance has been occasioned by the abandonment tee, mainly because of the opposition of France, was of the gold standard, and tariffs have cut down inter- debarred from considering—and deals only incidentnational trade. "Attempts to maintain the interna- ally with the questio n of German short-term credits tional balance of payments by. means of larger and regarding which a report from another committee of abnormal movements of. gold have weakened the bankers will shortly be forthcoming, the reference to monetary foundations of many countries." In Ger- transfers in the first of the committee's concluding many particularly, obligated to transfer large sums observa tions appears comprehensive enough to admit annually to its creditors, the inability to obtain fur- of includi ng both matters among those which the ther foreign loans has produced a situation,"clearl confere y nce may consider. The report is further silent pointed out" by the Dawes committee,in which inter- on the question whether the moratorium to be acnational payments "can be made only in the form of corded to Germany should be limited to the twogoods." Regarding the large short-term credits ob- year period contemplated by the Young Plan or tained because of Germany's "demand for capital to should be given a greater extension. There is nothfill the gap left by the war, the aftermath and the ing in the report to indicate an opinion on the part inflation," the committee point out that "a substan- of the committee adverse to the further payment of tial part . . . . have proved to be immobi lized in reparations or war debts, the only recommendation long-term investments. Withdrawal of these credits being that such payments should be adjusted "to must therefore threaten not only the exchange but the existing troubled situation of the world." also the liquidity of banks themselves." The impression made by the Basle report has been The committee accordingly conclude that "it is curiously variegated. Press dispatches from Berlin evident .... that Germany would be justified in have represented German opinion as convinced that declaring—in accordance with her rights under the the report had "pulled up the Young Plan by the Young Plan—that in spite of the steps she has taken roots" and greatly strengthened the demand for prito maintain the stability of her currency she will not ority for short-term credits over reparations. Both be able in the year beginning in July next to transfer the French And the British press have indulged in the conditional part of the annuity." The committee some severe strictures upon the United States for have felt it their duty, however, to "draw the atten- its debt policy, and have insisted that now that repation of the Governments to the unprecedented gravity rations and debts have been shown to be indissolubly of the crisis, the magnitude of which undoubtedly ex- linked, debt payments to the United States should of ceeds the 'relatively short depression' envisaged in course cease, and it has even been suggested that the the Young Plan, to meet which the 'measu res of safe- debt agreements should be repudiated altogether guard' were designed .... Action is most urgentl y since, if reparations are to cease, further payments 16 FINANCIAL CHRONICLE [Vol,. 134. upon them exclusively to meet its obligations will be impossible. Political gossip has conjured the relied , that the strictures and recommenspectre of a united Europe,to the extent of the coun- to this country of the report at those points directly apply. tries interested in reparations and debts, facing the dations United States with something of the nature of an What Reserve Banks Say of Themselves. ultimatum, demanding either a cancellation of the FOURTH ARTICLE. debts or their reduction to a figure corresponding to y German which attention has been given to the pracsmall, articles previous In very bly the amounts,presuma s, may still be induced to pay. France and Great tices of Federal Reserve banks, as indicated by themselve ttee Subcommi e Britain have been represented as likely to conclud in replies to the questionnaires of the Senate an agreement which it is assumed the United States on Banking, with respect: (1) to discount rate policies; will not accept, and which is then to be used in some (2) to open market policies and practices, and (3) to bankway to convince Germany that American sympathy ers' acceptances and their relation to discount and open market methods. To complete the review of Federal Reis not to be relied upon. be best think, we may, policies, it is now needful only to consider, as fully as ications serve prognost All such enis It rumor. of realm will permit, the technique and point of view of the ntial insubsta space the in left may France various Reserve banks with regard to the discounting of tirely likely that Great Britain and meetthe to prior paper protected by Government obligations and the purchasreach some mutual understanding alis it indeed, ; ing of such obligations in the open market. ing of the conference in January MacMr. between tions conversa Since this series of articles was begun, results of the ready reported that al . The report planned being are Laval Committee's study of investment holdings in commerci Donald and M. will be y study German this of article ce final a resistan In the hen issued. been strengt has y banks will obviousl to any new arrangements that it sees any likelihood reviewed. of being able to modify. It is not consistent with in- ABOLITION OF SUB-TREASURY SYSTEM LEADS TO GRANTING OF AUTHORITY TO FEDERAL RESERVE BANKS TO ternational comity, however, to assume that any of INVEST IN U. S. GOVERNMENT SECURITIES—WAR repudiat y consider seriousl the debtor nations will FINANCING AND WAR SELLING OF BONDS. ing its obligations, whether to the United States or As in the case of other phases of Federal Reserve policy, to its immediate European neighbors, or that a It is essential to devote brief attention to the origin of the "united front," if one is formed, will be allowed to present practice of dealing in Government securities, and impair friendly international relations. We think it to glance cursorily at the parallel practices of European improbable that the conference will mix public and central banks. It had been customary, for long years prior private matters by attempting to settle the question to the adoption of the Federal Reserve Act, that central of Germany's short-term credits directly, since that banks should act as fiscal agents for the governments under would involve a governmental interference with which they were organized, and this meant, in practice, the banking functions which the banking world would necessity of occasional limited advances to make up transihardly care to accept. The main problem of the tory shortages of current funds. The Federal Reserve Act conference, as we see it, will be to determine how inaugurated a real reform in older methods when it undermuch, if anything, can in reason be required of Ger- took to do away with the Sub Treasury system. But in thus many in reparations after a two years' moratorium abolishing the Sub Treasury, it was necessary to provide has been granted, and how the German payments financing facilities for the Government, and thus the new can best be made. What shall be done about the debts Act authorized the Federal Reserve banks to deal freely and is a question which each of the debtor countries must without restraint in the.securities of the Government, notanswer for itself. The crux of the debt situation is withstanding its whole tendency was toward exclusive dealthat none of the debtor nations has been making its ings in, and operations upon, short-term obligations. There payments through the taxation of its own people, was, apparently, no probability that such operations would but has relied upon Germany to provide the whole be large enough to have any perceptible effect upon the amount and, in several cases, considerably more. portfolio of the banking system. The Government debt at This, and this alone, is the much-talked-of "connec- the time was below $1,000,000,000, and practically none of tion" between reparations and war debts. It was in certificates of indebtedness or their equivalent. Late dispatches indicate that the United States There was no seeming prospect that anything but debt will not be included in the list of Governments in- reduction was in sight. vited to attend the conference. We greatly hope that Then came the war; later, our own participation therein; an invitation, if it is extended, will be declined. The and still later, the issue of vast quantities of certificates of g question of reparations remains, notwithstandin indebtedness and Liberty bonds. The Treasury was unpreEuropbeen—a always the Basle report, what it has pared for the struggle, and its first act was to turn direct ean issue with which the United States may not to the Reserve banks for the funds it needed. Later, this properly have anything to do, while the action of disposition was converted into a regular, systematic policy Congress in declaring against the cancellation or whereby Reserve banks devoted themselves to war financing reduction of the debts places Mr. Hoover under a and war selling of bonds—the keeping of war funds. There moral obligation, if not indeed a clear constitutional was a certain excuse for this perversion, apart from sheer one, to avoid American participation in a conference necessity, in the fact that the Government gradually absorbed in which the debt agreements may in any manner be all business operations, including manufacturing and transbrought into controversy. The debt agreements per- portation, leaving only retailing well in the hands of private mit the debtor Governments to postpone for short citizens; so that the System was, in performing these services periods the payments due, and it is open to any Gov- for the Government, really performing them for business. ernment that finds its resources temporarily imNO RETURN TO THE OLD SYSTEMIOF LIQUID PAPER. paired to avail itself of that privilege. The Basle But with the close of the war it might reasonably have report, in short, leaves the position of the United been expected that there would be a return to the older States unchanged as far as either reparations or war system of "liquid" paper. The then management of the debts are concerned. It is to the Europe which has Reserve System at Washington endeavored to bring about demanded excessive payments from Germany, and JAN. 2 1932.] FINANCIAL CHRONICLE such a return, and during the years 1919 and 1920, gradually 17 ried so far (both in this and in other countries) by central drove a large part of the certificates and bonds out of the banks as to lead some extremists and enthusiasts in various Reserve banks and into private banks, or into the hands of countries to assert that central banking would be impossible investors, chiefly the latter; but the effort was only transi- without it. It is worth while to inquire carefully into the tory. With the coming into office of a new administration In 1921 all was changed, and it should be added that this arguments for the position thus taken. While many of the change had many defenders in Reserve banks. There were not a few in the Reserve System who had welcomed the response to the queries of the Committee, the Federal Reserve Bank of New York develops an extended and detailed situation in which it was possible to relieve the risks and hard work of banking, merely by asking that loans be col- argument on the subject as follows: lateraled by Government obligations, and who desired to see enough certificates kept in existence to afford a "basis for banking." Under the regime of Secretary of the Treasury Mellon, a short-term method of Treasury financing, with vast volumes of certificates of indebtedness in circulation, discounts protected by and based upon such certificates, and with certificates forming an accredited, direct road to the Reserve banks was restored, and became the rule. From this it was a relatively easy transition to the regime in which the Reserve banks became vested, unofficially, with the duty of maintaining the market for certificates of indebtedness and keeping them at par, no matter how low their rate of interest might be. During the war and by subsequent amendments after its close, the Federal Reserve Act had been so amended as to result in the unquestioning rediscount of any paper brought to the Reserve institutions by member banks, if protected by accompanying Government obligations In proper amount. The final step away from the original idea of a self-liquidating banking system was taken when the practice of borrowing on 15-day paper for stock market uses, with Government obligations as collateral, was recognized and tolerated. IN REPLY TO SENATE QUESTIONNAIRE FEDERAL RESERVE BANKS SHOW THEMSELVES OPPOSED TO REPEAL OF PROVISION PERMITTING BORROWING BY MEMBER BANKS ON UNITED STATES OBLIGATIONS. In these circumstances, it is not strange that the Senate subcommittee has asked of the Reserve banks certain questions relating to Government obligations and to methods and practices of dealing therein. Of these, two were of outstanding importance, as follows: Question No. 7.—Relative to the repeal of the provision in the Federal Reserve act permitting member banks to borrow on their 15-day promissory notes secured by Government obligations as a means of preventing the use of Federal Reserve credit for speculative and investment purposes. All Federal Reserve banks expressed themselves as opposed to the repeal of this provision, though five indicated that it might tend toward the reduction of the amount of Federal Reserve credit used for speculative and Investment purposes. The reasons given in opposition to the repeal were: 1. Member banks borrowings arise from a loss in deposits or from an Increase in loans and are not related to specific transactions. They are resorted to as a means of restoring or maintaining reserves which might be depleted by reason of a variety of different transactions. 2. The convenience on the part of member bamks in borrowing against Government obligations. 3. The assistance rendered in strengthening the market for Government obligations. 4. The fact that the repeal of this provision would not in the past have affected the total volume of Federal Reserve credit,since in the aggregate, all banks possessed eligible paper considerably in excess of total borrowings. 5. The fact that in certain communities there is a dearth of eligible paper so that banks there would find themselves discriminated against or embarrassed. Question No. 8.—Relative to prohibiting member banks from increasing their own security loans when borrowing from the Federal Reserve banks on the basis of their 15-day promissory notes secured by Government obligations. All of the Federal Reserve banks expressed themselves as being opposed to this suggestion. The reasons given were that the enactment of such a provision would prevent member banks from engaging in normal and legitimate transactions and from relieving an emergency situation exemplified by the stock market crash of 1929, and would tend to drive banks from membership in the Federal Reserve System. The thought was expressed that any abuses in the use of the borrowing or rediscounting privilege could be handled administratively. RESERVE BANKS NOT WILLING TO GIVE UP NEW WAY OF BANKING DEVELOPED DURING THE WAR—THE NEW YORK RESERVE BANK'S ARGUMENT IN FAVOR OF THE PRACTICE. It thus appears that the Reserve banks are not willing to give up the "new way" of banking that was developed during the war as a war measure and which has been car- Reserve banks are content to register a mere negative in There appear to be two possible lines of reasoning which might be advanced in support of a proposal to prohibit member banks from borrowing on their 15-day promissory notes secured by Government obligations, as a means of preventing Federal Reserve credit from being used for speculative and investment purposes. The first argument would relate to the specific use by banks of the funds so obtained, and the second would relate to the effects on the total volume of Federal Reserve credit in use. The first question is whether Federal Reserve funds which are obtained by'banks by the presentation of their collateral notes secured by governments, are used in any different way from the Federal Reserve funds obtained through other channels. The chain of circumstances which results in member banks' borrowing and the processes followed are about as follows: 1. The member bank finds itself with its reserves deficient; that is, with its reserve deposit at the Federal Reserve bank less than the amount required by law. this may be due to (a) a withdrawal of deposits, or (b) an increase in its own loans. If the loss of reserves is due to the loss of deposits it is difficult to anticipate and outside the control of the bank, and this is also true of increases in loans in vises where prior commitments have been made. Increases in certain types of loans can of course, be anticipated, and as a matter of practice a bank is reluctant to increase its loans if it anticipates that this operation will result in a deficiency of reserves. In fact, it may generally be assumed that a deficiency of reserve which leads to member banks borrowing is usually due to events which are unpredictable and outside the bank's immediate control. 2. Finding itself with deficient reserves a member bank has a number of alternatives, somewhat as follows: (a) To call demand loans, (b) to sell bills or investments, (c) to borrow from a correspondent bank, (d) to borrow from a Federal Reserve bank. Federal Reserve credit may get into use through two of these channels. If the bank has bankers' acceptances in its investment portfolio they may be sold to a Federal Reserve bank, thus putting Federal Reserve credit Into use. Otherwise there is only one avenue open which is the avenue of borrowing. 3. Having decided to borrow from the Reserve bank a bank then has the choice as to whether it will present some of its customers' paper for • rediscount or will give the Federal Reserve bank its own 15-day collateral note secured either by Government securities or by customers' paper. Usually the collateral note secured by governments is the most convenient means because many of the member banks hold in safe-keeping with their Reserve bank some amount of Government securities which they can use as collateral for borriwng simply by forwarding to the Reserve bank a collateral note. This avoids the necessity of picking out customers' paper, listing it on application blanks, making sure the Reserve bank has statements properly filed, arranging appropriate maturities, and other possible inconveniences arising from surrendering possession of the paper. 4. The form of the borrowing transaction is that the borrowing bank sends to the Reserve bank its note or its paper for rediscount and receives credit in its reserve deposit account on the books of the Federal Reserve bank. The destination of the proceeds is identical whether the loan is made against rediscounted commercial paper or the member bank's collateral note secured either by governments or eligible paper. The proceeds are used to build up depleted bank reserves. . . . From this survey of the way in which Federal Reserve funds get into use through a member bank, several conclusions may be drawn. (a) The most common event leading to borrowing, a depletion of reserves through the loss of deposits, is completely outside the control of the bortowing bank. The funds are used by the bank customer in any way he pleases. (b) In ninety-nine cases out of a hundred the kind of paper used by a member bank to borrow from the Reserve bank has no connection with the operation which made it necessary for the bank to borrow. (c) The act of borrowing at a Reserve bank is only the first of a series of operations in which Federal Reserve credit is passed from hand to hand until it may expand into a volume of bank credit many times its own amount. Nine-tenths of this process is completely beyond the control of the borrowing bank. In other words, even if it were possible and practicable to identify particular loans by member banks as the immediate cause of Federal Reserve borrowing, and to limit such borrowing to that which has been made necessary by certain types of loans, this would not be in any degree effective to control the character of nine-tenths of the additional member bank loans which would be made possible by the Federal Reserve credit released through the borrowing from the Federal Reserve bank. (d) Therefore the particular form which the withdrawal of Federal Reserve funds takes in no way determines the eventual use of the money. The loan is simply a vehicle for letting out Federal Reserve funds into general use, and the use is no different whether the funds are put out In the form of loans against member bank notes secured by Government collateral, or in the form of rediscounts, bills, or any other form of Federal Reserve credit. The second question is whether the privilege which banks have of borrowing on their 15-day notes secured by governments tends to encourage an excessive expansion of credit; that is, whether the availability of this method results in a larger use of Federal Reserve funds than would occur if this facility were withdrawn. Upon this point it is first necessary to review the figures. They are published currently for all member banks in the Federal Reserve Bulletin and may be summarized by saying that all member banks on last Sept. 24 held Government securities amounting th $3,446,000,000, and eligible paper amounting to $3,812,000,000. These figures compare with a total of about 81,000,000,000 of Federal Reserve credit in use on that date of which about 8600,000,000 took the form of Government securities bought in the open market, 8200,000,000 bankers' acceptances sold to the Federal Reserve bank, and 8200,000,000 discounts, i.e., loans to member banks. On that date member banks as a whole had borrowing capacity against eligible paper alone considerably more than fifteen times the amount of their actual borrowings at the Reserve bank. In recent years the maximum amount of borrowing by member banks at the Reserve banks FINANCIAL CHRONICLE 18 was a little over $1,000,000,000 or a little more than one quarter of the total amount of eligible paper. For the New York City banks the average holdings of governments and of eligible piper during the year 1929 as indicated by the four call condition statements of that year are as follows: 31,014,000.000 Government obligations owned 1.061.000,000 Eligible paper held 425,200,000 Maximum borrowings at any one time These figures indicate that the borrowings of these banks as a group 40% of approximately did not at any time reach a total of more than the eligible paper held, and it is a reasonable assumption that the borrowings of these banks under anything approaching normal conditions would not amount to more than the eligible paper held. In fact, during the credit disturbances in the fall of 1929, the borrowings of only two New York City banks exceeded at any time the amount of eligible paper held by them. When we turn, however, from the banks in principal centers to the smaller banks, the case is not so clear. A number of smaller institutions would be considerably embarrassed by a lack of sufficient eligible paper. While the position of these banks with respect to borrowing would have no considerable effect on the total volume of Federal Reserve credit called into use, the removal of the privilege of borrowing on governments would discriminate against a number of member institutions, and especially those in smaller cities and towns. While the removal of this right in ordinary times would have little effect on the total volume of Federal Reserve credit it would become an important and essential consideration in times of bank disturbances when banks may be called upon to meet sudden or large withdrawals. Even the present facilities of access to the Reserve bank have proved inadequate for some of these occasions, and the removal of this facility would to a considerable extent cripple the Reserve system from accomplishing one of the major purposes for its establishment which was to meet emergencies. Without these facilities the system would be much less useful to many small banks. It was clearly the purpose of the Federal Reserve Act to make borrowing possible on a large scale in emergencies. When it was enacted the amount of eligible commercial paper was much larger than at present relative to total bank loans and investments, as illustrated by the following figures, which relate to National banks only: ALL NATIONAL BANKS. (In millions of dollars) Per cent of eligible Eligible Total loans paper to total loans and paper held, and discounts, discounts. Date— December 27 1916 June 30 1920 June 30 1924 June 30 1928 June 30 1930 2,293 4,320 3.542 3,266 2.719 8,395 13,611 11,979 15,145 14.874 27.3 31.7 29.5 21.5 18.2 [Vol,. 134. by Government obligations was (as already noted) answered in the negative by all Reserve banks, but the replies merit somewhat further analysis. This is again exemplified to best advantage in the answer of the Federal Reserve Bank of New York, which responds: We do not believe a distinction may properly be drawn between different forms of borrowing from the Reserve banks. The form of borrowing from the Reserve banks does not affect the nature of the use of the proceeds of the loan made by the member bank to its customer, and there is, therefore, nothing to be gained by placing an additional penalty upon any one form of borrowing. The question then becomes whether all member bank borrowing should be subject to the restriction that borrowing banks may not increase their own collateral security loans. This restriction has presumably been suggested as a means of controlling the growth of speculative loans. The following considerations may be suggested: 1. Not all collateral loans are speculative in character or to be discouraged. A considerable amount of collateral borrowing is for business purposes and for legitimate and necessary financing. Much of the credit required for the development of the country's industry has for years been financed upon the basis of stocks and bonds. 2. The question arises whether banks have in fact abused the borrowing privilege by excessive advances of collateral loans which necessitated their use of Federal Reserve credit. Broadly speaking, the records Indicate that the banks in this district have not increased their collateral loans unnecessarily at times when they were indebted at the Reserve banks. There have, of course, been some exceptions to this rule, but hardly sufficient to affect the general credit situation. During the speculative enthusiasm of 1928 and 1929, with call rates at attractive levels, the New York City banks made a very slight increase in their loans to brokers. 3. There are many occasions when the proposed restriction would work not only a hardship, but might bring about serious consequences. (a) The events of the stock-market crash of October and November 1929 are illustrative. To prevent a money panic, the New York City banks were required, in a period of two weeks, to take over temporarily a considerable part of the $2,000,000,000 of brokers loans withdrawn by other lenders. To do this they found it necessary to borrow the necessary reserve at the Federal Reserve bank. This action prevented a serious panic. (b) In bank emergencies one bank is frequently called upon to lend to another considerable amounts in the form of collateral loans, and frequently the lending bank is compelled to borrow from a Reserve bank. 4. In their ordinary operations commercial banks must follow a consistent policy from day to day as to collateral loans. They must make general undertakings to accommodate their customers. They can not make a loan to-day on collateral security and refuse to make a precisely similar loan under similar conditions to-morrow. Therefore, If the law should prohibit them from making any loans on collateral security while they are indebted to the Federal Reserve bank, they would be forced to do one of two things: (a) Discontinue their business of making loans on collateral security,or (b) Discontinue borrowing from the Federal Reserve bank. They should not be forced to do (a) because making loans on collateral security is properly and lawfully a part of a bank's business, and it is responsive to the legitimate requirements of the bank's customers; nor should they be forced to do, (b) because if banks were to adopt the policy of never borrowing from the Federal Reserve bank the advantages of membership would be greatly diminished, and there would be many withdrawals from membership and a corresponding loss in effectiveness of the system. For these reasons it seems to us undesirable that the proposed restriction should be placed upon member bank borrowings. It appears impracticable. In the face of steadily declining amounts of eligible paper and declining amounts of Government securities outstanding, there is question how long even the present terms of the Reserve Act will provide sufficient possible access of individual member banks to the Reserve banks, especially in emergencies. The amount of eligible paper is very unevenly distributed among individual member banks. Two further general comments may be made on this general subject. The first relates to the goodness of Government-secured paper as a Reserve bank asset as compared with commercial paper. The primary security in each case is the obligation of the member bank, and as long as the member bank remains open one form of paper is as good as the other. If the member bank falls, however, the Government-secured obligation is better than customers' paper because the customer's credit is often so closely tied up with the bank that his ability to meet his obligations is considerably impaired by the bank's failure. A second comment relates to the method of control over the volume of Federal CHICAGO RESERVE BANK GIVES ILLUSTRATIONSITO SHOW Reserve credit and bank credit generally. If the amount of paper HOW PRINCIPAL OPERATIONS IN GOVERNMENT SECUeligible for discount is to be adequate to meet emergencies and unusual RITIES WORKED. demands, it must be far in excess of the amount of Reserve funds In use in ordinary times. Therefore, the control of the volume of answer speaks for itself and embodies the main This Reserve funds year in and year out is to be found, not in controlling the amount of eligible paper, but in controlling the operation of putting philosophy of the Reserve bankers who favor security loans. reserve funds into use—and this means primarily rate control. It is largely tantamount to a statement that things are as they are because they are so; and that they should not be Sum up these arguments and many more to the same effect changed because they have fallen into their present posture. and they amount to a statement: The other side of this question relates not to theory, but (a) That central banking is not easy and probably not to actual experience and practice in connection with the possible without operations in Government credit. use of Government securities as an outgrowth of the policies (b) That there is not enough eligible paper in existence Federal Reserve banks in practice. During the subcomof to permit the proper functioning of central banks without mittee's inquiry into open market policies, the banks were reliance on Government securities as a basis. vsked to state the major reasons for each of the principal (c) That the theory of liquidity is of little importance operations in Government securities since 1922 and the and that it makes no special difference what is the form in results thereof. The general subject of open market operawhich funds are withdrawn from Federal Reserve banks— tions and the underlying ideas connected with them have the use of the "money" is not determined thereby. already been considered (in a preceding article on "Open Of course, on this basis there would really be no use whatMarket Operations"), and do not need to be rehearsed here. ever in central banking, and the Government might as well All that remains is to note the way in which open market carry on the whole business from a bureau of its Treasury, operations have centered around Government securities and regulating the supply of "credit" as it chose. No discussion the effects of such purchases and sales on the most imof the argument is called for because it defeats itself. portant occasions. As to this, the most compact and logical ALL RESERVE BANKS ANSWER IN THE NEGATIVE QUESTION has been furnished by the Reserve Bank of Chicago, account WHETHER RESERVE BANKS OUGHT TO RESTRICT SECURITY LOANS BY MEMBER BANKS WHEN THE LATTER as follows: ARGUMENT DEFEATS ITSELF. ARE SEEKING TO BORROW FROM RESERVE BANKS. The question whether it is worth while to try to restrict security loans by member banks during periods when they are seeking to borrow from Reserve banks on notes secured There have been four major operations in the purchase and sale of United States Government securities since January 1922. First, in the year 1922, when liquidation and deflation had taken place in commodity prices following the inflation in commodity prices in 1920 and the heavy demand for credit at that time. As a result of this deflation, member bank loans were liquidated at the Federal Reserve banks to the point JAN. 2 1932.] FINANCIAL CHRONICLE where it was doubtful if they could earn enough to pay their expenses and dividends. The purchases of Government securities at that time were not the result of a system policy, but the purchases were executed by a committee acting on behalf of the individual Federal Reserve banks, as many of the banks were desirous of increasing their earnings at that time. It can therefore be said that the purchases in 1922 were largely for the purpose of creating earnings, although such purchases, by making money easier in the open market, doubtless contributed to the business recovery which began in 1922. At the present time the policy of the Federal Reserve System regarding earnings has materially changed and it is not now considered necessary to purchase Government securities solely for the purpose of creating earnings to cover expenses and dividends, as it is now considered proper to pay dividends out of accumulated surplus, if necessary, rather than create an undesirable market situation of low-money rates by competition with member banks and others in the purchase of such securities at a time when such purchases would not serve as an aid to the general situation. In April 1923, the Federal Reserve Board urged the Federal Reserve banks to sell their holdings of Government securities, as at that time the Treasury Department felt that the purchases of Government securities by the Federal Reserve banks was having an adverse effect upon the Treasury's program of purchasing in the open market Government securities for redemption, so the excess amount of such securities held by Federal Reserve banks were sold in 1923,leaving only a nominal amount in their portfolios. The next large purchase of Government securities by Federal Reserve banks resulted from a meeting of the open-market investment committee of the Federal Reserve System in conjunction with the Federal Reserve Board and it was concurred in by all 12 Federal Reserve banks. Purchases were begun early in December 1923, and continued until early September 1924. . . The easy-money policy led to an increase in speculation accompanied by a substantial increase in speculative loans. In order to offset the speculv.tive demand, sales were made from the system investment account beginning in December 1924, and continuing until March 1925. Such sales had at least a partial effect in restraining speculation. The next large purchase of securities occurred in the summer and fall of 4927, and while this action was taken by the committee of the Federal Reserve banks in conjunction with the Federal Reserve Board, doubt was expressed by some members of the committee that because of the increasing speculative demand for credit a purchase of Government securities would materially increase speculation and might produce disastrous effects. However, it was finally agreed that in order to facilitate the financing of our agricultural products and to assist European countries in the purchase of our products by low-money rates in this market and to prevent imports of gold, that these considerations were more important to business and that whatever increase in speculation occurred could be checked by the sale of securities after these objects were accomplished. However, the securities market had attained such momentum that when sales of Government securities were made in the first six months of 1928 speculation was so violent and had proceeded so far that it was not checked by the sale of these securities and because of the tremendous volume of funds attracted to the call-money market, particularly in the form of loans by othersthan banks,control of the situation had been lost and the only remedy left was to sharply increase the rediscount rates. The next major operation in the purchase of Government securities occurred immediately after the stock market crash in the fall of 1929, and the purpose was to make money easy, so that every possible obstacle could be removed in helping to restore business confidence. Further moderate purchases occurred in 1930 with the same purpose in mind, and practically no salesfrom the system investment account have been made up to date this year. ILLUSTRATIONS FAIL TO VINDICATE DEFENSE OF PRACTICE. From this setting forth it seems to be a fair conclusion: (a) That the operations in Government securities have not by any means produced the results sought or desired as a result of them. (b.) That these operations have failed to vindicate the notion that it makes no difference how funds get out of a Reserve bank, since it is admittedly "not possible" to trace In detail the uses or effects resulting from them. (c) That such operations have in practice added to speculative disturbances and have tended to bring the banking system into over-close connection with the securities markets. THE PROBLEM IN ITS BEARING UPON THE FUTURE. The problem of Government securities and their effects upon the banking situation has been of utmost significance to the American people ever since the war. It is now, however, approaching a point at which it will have redoubled significance. Due to the vast Treasury deficits which are piling up, and due to the evident necessity, or what is deemed such, of providing for them, in part at least, through borrowing, it is likely that the Treasury will continue to be "In the market" with short-term certificates to an increasing degree for a long time to come unless a strict policy of going to the public with high-rate loans not intended for banking use or absorption shall be resorted to. It is hardly to be expected that the Treasury will instantly alter the policy which it has been working out, however unwisely, for years past. Therefore, the question presents itself in fresh and vigorous form whether our banking system can afford to pursue the same dangerous plan of operating largely 19 in Government securities issued on a deficit basis, and, of course, the reverse of "liquid," holding immense volumes of them, and trading in them in the expectation of affecting market conditions. The fact is that this is a totally new plan in central banking, mknown before the World War and—as the answers of Federal Reserve banks show—unsuccessful since the conclusion of that struggle. James Speyer Finds the Whole World As One Commonwealth and Says It Must Be Recognized That the United States Is in the Same Boat with the Rest. It is encouraging to see, says James Speyer, of Speyer & Co., that during 1931 the American people, even in the agricultural States, have begun to realize that our country can not expect to return to its normal prosperity as long as the rest of the civilized world is in distress. It is clear that, through modern means of communication, of exchange, and transportation, the whole world, more than ever before, now is one economic commonwealth. We are all in the same "boat," and, when the financial and economic seas are disturbed, we are bound to feel the "rocking of the boat," even though a kind Providence has blessed us with a favored seat in that boat! Mr. Speyer then proceeds as follows: "Our President, recognizing this fact, took a well-considered and courageous step by proposing the moratorium, giving our foreign debtors a year's holiday, and it is to be regretted that the psychological effect was spoiled through delay in accepting this offer in the spirit in which it was made. However, a holiday, even if extended, can not last forever, and the world must get back to its normal life and regular work. "The report of the Basle CommitteP is another sign pointing to the right direction. It is primarily the duty of the victorious nations of Europe, whose statesmen are soon to meet, to find a way to correct the economic consequences of the "Peace" treaties (viz., cutting up Central Europe into small units, each with a tariff wall, and imposing upon mutilated and impoverished Germany payments for 50 or more years, which she is unable to make). Victors and vanquished alike are suffering from these mistakes, and the way must be found. by them towards economic and financial readjustment. "In our own country it becomes clearer every day that, whether or not we have succeeded in 'making the world safe for democracy,' we certainly have not succeeded, so far, in making it a 'better world to live in,' and this largely accounts for the feeling of disappointment amongst our people. While there is no valid reason for us to forego repayment of our loans, granted in good. faith to our Allies in their hour of need, we must not close our eyes to the fact that we are the great creditor nation of the world, and that it may be f, r the good of our own people, and humanity at large, to assist in restoring normal conditions, provided European nations—old and new—lead and show the proper way. They should drop ultra-nationalism and settle their differences and reduce armaments, reparations, and tariffs in a tolerant and broad spirit 'with malice toward none, with charity for all.' "While we sincerely expect that they may at last accomplish something in this direction, we certainly need not wait to bring better working order into our own home affairs, by modernizing our domestic laws which does not require the 'advice and consent' of foreign nations. "In view of the coming Presidential election, it is not surprising that our representatives in Congress and State legislators seem to be giving a great deal of time to recommendations and investigations, which doubtless are popular in their respective local districts, and which may appeal to the man from 'Main Street,' who, unfortunately, came to 'Wall Street,' neglecting his legitimate work and losing part or all of his savings. Of course, such losses are very much to be regretted, but no investigations or new laws can entirely control human impulse in the future. "Apart from the special relief measures which the President has recommended, in order to help to restore confidence and more normal conditions without further delay, it Is perfectly clear that our railroads need fairer treatment and assistance. Prompt and efficient transportation is essential. [VOL. 134. FINANCIAL CHRONICLE 20 This is the most important industry in the country. It gives employment to more men, directly and indirectly, than any other, and a very large number of our citizens are concerned In railroad credit as owners of railroad securities, not to mention their interest in savings banks and life insurance companies as owners of our railroad bonds. "Antiquated Anti-Trust legislation should be remodeled, so as to allow our manufacturers to combine, under proper supervision, as is encouraged in other countries, thereby preventing duplication of plants and unnecessary and ruinous competition. "One of the most helpful steps economically would be an amendment to our Prohibition laws. When Prohibition was enacted our country was excited, through the war, and prosperous, and nobody considered its financial consequences. To-day, when an enormous deficit threatens our national Treasury, it is proposed to increase income taxes, to which there should be no objection, provided the burden is fairly divided amongst all those who enjoy the privilege of being American citizens and have the right to vote. However, increasing income taxes will certainly not increase employment; on the contrary, it is to be expected that those who have to pay heavier taxes will have to cut their expenditures in other directions. By proper excise fees and licensing taxes, a very large legitimate income for our national Treasury could easily be obtained, and, at the same time, employment would be increased. This is not the place to dwell upon the illegitimate profits of 'bootleggers,' or upon the demoralizing influence which, contrary to the promises of the Prohibition champions, this legislation has brought with it. And, reverting once more to Europe, it is a fact that this demoralization and non-observance of this law by Americans are generally known in Europe and unfavorably commented upon, and have a detrimental effect upon our influence in international affairs and settlements. "Let us hope that in these, and other important matters, our representatives in Congress will be big enough to act promptly and to rise above local and narrow political prejudices and follow the example of British statesmen who have come together and acted unselfishly solely for the good of their country. "It is most encouraging that American men and women In this hour of stress have again proven their willingness to be helpful to, and stand by, each other, regardless of race, creed and color. As long as this spirit prevails in our free country-so rich in natural resources-we are bound to recover our normal prosperity for the good and well-being of all our citizens. When that time will come will depend to a great extent on the readjustment of European affairs and on the wise solution of our own industrial and financial problems. In the meantime, in the light of our past history and achievements, pessimism is not justified and will only retard our recovery." New York, Dec. 31 1931. The Course of the Bond Market. Continuing the practice inaugurated last week, the "Financial Chronicle" is again presenting tables showing the action of the bond market, both by average yields and by prices as calculated from those yields. Since a week ago two railroad bonds have been substituted for issues previously on the list. In the A classification Lehigh Valley 4s, 2003, have been substituted for Baltimore & Ohio 5s, 2000, while in the Baa group Baltimore & Ohio 5s, 2000, have been substituted for the 4s of 1960 of the same road. A moderate improvement has been registered in the bond market during the current week, with the average price of 120 domestic bonds 0.22 points higher on Thursday night than one week earlier. The Thursday rally was chiefly responsible for this gain, for on that day every class of bond except the Baa industrials and the An foreigns recorded a substantial advance. The year has closed with the entire bond market in a listless condition and with striking price changes throughout the list as contrasted with Dec. 31 1930. For the 120 domestic issues the average yield on Thursday was 37.5% above that of the final day in 1930. Bonds rated Ann by Moody's suffered the least in the price decline, with a current average yield of 5.34% compared to 4.47% a year ago. The current Baa average return is 10.09%, against only 6.72% on Dec. 31 1930. Railroads show a drop in price, which is reflected by an advance of more than 50% in average yield during 1931, while the best performance has been staged by the utilities, whose yield average is 6.31%, compared to 5.19% at the end of 1930. The usual tables are given below: MOODY'S BOND PRICES. 1931 Daily Averages. i Dec. 31 30 29 28 24 23 22 21 19 18 17 16 15 14 12 11 10 9 8 7 5 4 3 2 1 Weekly-Nov.27 20 13 6 AU 120 Domestic by Rating:. 120 Domestic. Baa. Aa. A. Aaa. 120 Domestic by Groups. RR. P. U. Indus. 74.87 74.56 74.41 74.72 75.32 75.55 75.70 75.25 75.10 74.11 73.51 74.74 74.86 75.86 76.48 76.80 77.83 78.47 79.12 79.30 78.80 78.96 7946 79.40 80.02 68.49 67.77 67.77 67.69 68.27 68.45 68.76 67.86 67.42 65.29 62.56 63.66 64.14 65.29 66.39 66.89 68.04 69.03 69.86 69.86 69.70 69.50 70.13 70.53 71.37 82.82 82.28 82.14 82.14 82.82 83.22 83.22 82.68 81.74 81.22 79.77 80.94 80.94 82.00 82.68 83.54 84.06 84.76 85.04 85.04 84.76 84.76 85.32 85.63 85.77 74.27 73.74 73.84 74.49 74.70 75.03 75.03 74.27 73.95 73.20 72.48 73.00 73.83 75.13 76.11 76.11 77.27 77.73 78 53 78.65 78.77 78.77 78.89 79.01 80.32 70.49 69.18 69.70 70.05 70.76 70.58 70.14 69.01 68.33 66.35 63.33 64.77 65.01 65.87 67.01 67.49 68.92 69.96 70.76 70.49 70.85 70.67 71.75 72.02 73.04 56.08 54.68 54.30 53.65 54.08 54.30 55.82 54.46 54.30 50.97 47.42 48.35 49.03 50.15 51.26 51.77 53.18 54.22 55.26 55.41 55.14 54.40 55.20 55.53 56.35 54.80 53.82 53.89 63.28 53.89 54.03 54.66 53.35 52.75 50.04 46.12 46.74 47.37 48.36 49.29 49.81 50 83 51.79 52.54 52.38 62.75 51.91 52.68 62.82 64.17 78.56 78 00 77.89 78.33 78.33 78.56 78.45 77.89 77.44 75.37 73.18 74.42 75.04 76.30 77.55 78.23 79.47 80.53 81.37 81.49 81.25 81.25 81.86 82.46 82.84 72.66 75.17 77.55 76.56 87.06 88.57 89.62 88.26 81.30 83.19 85.02 83.97 73.69 75.95 77.98 77.17 57.97 61.54 64.80 63.93 55.59 59.48 63.02 61.59 83.58 81.21 85.36 182.22 87.08 83.27 86.41 82.56 MOODY'S BOND YIELD AVERAGES. (Based on closing Prices) AB 120 Domestic by Ratings. 1931 120 Daily DomesBaa. A. Ac. Awl. M. Averages. Dec. 31__ 30._ 29__ 28-24__ 23__ 22__ 21__ 19._ 18__ 17__ 16-15__ 14__ 12__ 11__ 10__ 9__ 8__ 7__ 5__ 4__ 3__ 2._ I__ Weekly. Nov.27_ _ 20__ 13._ 6__ Yr. Apo. Deo.31'30 120 Domestic by Groups. RR. 40 ForP. U. Indus. clone. 7.34 7.42 7.42 7.43 7.37 7.35 7.31 7.41 7.46 7.71 8.05 7.91 7.85 7.71 7.58 7.52 7.39 7.28 7.19 7.19 7.20 7.23 7.16 7.12 7.03 5.34 5.38 5.39 5.39 5.34 5.31 5.31 5.35 5.42 5.46 5.57 5.48 5.48 5.40 5.35 5.28 5.25 5.20 5.18 5.18 5.20 5.20 5.16 5.14 5.13 6.40 6.45 6.44 6.38 6.36 6.33 6.33 6.40 6.43 6.50 6.57 6.52 6.44 6.32 6.23 6.23 6.15 6.69 6.02 6.01 6.00 6.00 5.99 5.98 5.87 7.53 7.68 7.62 7.58 7.50 7.52 7.57 7.70 7.78 8.02 8.41 8.22 8.19 8.08 7.94 7.88 7.71 7.59 7.50 7.53 7.49 7.51 7.39 7.36 7.25 10.09 10.16 10.23 10.35 10.27 10.23 10.04 10.20 10.23 10.87 11.64 11.43 11.28 11.03 10.81 10.71 10.44 10.24 10.06 10.03 10.08 10.21 10.07 10.01 9.87 7.99 8.13 8.12 8.21 8.12 8.10 8.01 8.20 8.20 8.72 9.43 9.31 9.19 9.01 8.84 8.76 8.59 8.44 8.32 8.35 8.29 8.42 8.30 8.28 8.08 6.31 6.36 6.37 6.33 6.33 6.31 6.32 6.37 6.41 6.60 6.81 6.69 6.63 6.62 6.40 6.34 6.23 6.14 6.07 6.06 6.08 6.08 6.03 5.98 5.95 7.72 7.76 7.78 7.74 7.66 7.63 7.61 7.67 7.69 7.82 7.90 7.74 7.72 7.59 7.51 7.47 7.34 7.26 7.18 7.17 7.22 7.20 7.14 7.11 7.07 16.01 16.30 16.53 16.40 16.48 16.11 15.93 15.72 15.78 16.18 16.58 15.63 15.58 14.90 14.61 14.62 14.24 13.94 13.77 13.72 13.69 13.75 13.27 13.70 12.96 6.90 6.65 6.43 6.52 5.04 4.94 4.87 4.96 5.79 5.64 5.60 6.58 7.18 6.95 6.75 6.83 9.60 9.05 8.59 8.71 7.88 7.38 6.97 7.13 5.89 5.75 5.62 5.67 6.93 6.81 6.69 6.77 12.28 11.60 11.11 10.75 5.34 4.47 4.81 5.36 6.72 5.26 5.19 5.58 7.32 $25,000,000 Proposed To Be Added to Bill Providing $100,000,000 Additional Capital for Federal Land Banks-To Be Used in Granting Farmers' Moratorium. An additional $25,000,000 to be used in granting postponements on farm mortgage payments was attached to-day by a Senate sub-committee on banking to a House bill to increase the capitalization of the Federal Land Banks. Associated Press advices from Washington Dec. 26 further said: The bill as passed by the House calls for the Government to subscribe $100,000,000 to the capital of the land banks and authorizes the banks at their discretion to allow postponements of mortgage installments due and their payment over a five-year period. The Senate sub-committee, headed by Senator Robert D. Carey (Rep.), of Wyoming, voted to add the $25,000,000 In order to finance the so-called moratorium for farmer borrowers. The $25,000,000 is to be repaid to the Federal Treasury by the banks when their need for the money has passed. Senator Carey believes the amendment will permit a moratorium and,at the same time, avoid weakening the banks. A favorable report on the measure with the amendment was decided upon by the Committee, which will approve the final language of the re-draft at another executive session on Monday. Mr. Carey said the bill would be reported promptly to the full Committee and probably would be laid before the Senate soon after Congress reconvened. He added that Senate action on it might be sought ahead of President Hoover's other big economic rehabilitation proposal-the $500,000,000 reconstruction finance corporation-on the grounds that It probably would not require nearly as much discussion and that it already had passed the House. The bill as passed by the House on Dec. 19, was referred to in our issue of Dec. 26, page 4253. JAN. 2 1932.] FINANCIAL CHRONICLE 21 Text of Advisory Committee's Report to Bank For International Settlements Indicating Ger:Tv:my's Inability to Pay Reparations—Also Summary of Report. In our issue of Dec.26(page 4233, we referred to the report of the special Advisory Committee appointed at the instance of the Bank for International Settlements to inquire into Germany's ability to pay reparations as provided in the Young Plan. As was indicated in our item of a week ago, the Committee concludes "from its survey of the facts, that Germany would be justified in declaring as she is entitled to under the Young Plan, that in spite of the steps she has taken to maintain the stability of her currency, she will not be able In the year beginning in July next, to transfer the conditional part of her annuity." The report concludes with an appeal to the governments to act without delay in dealing with the crisis. An official summary of the report, as made available In Associated Press cablegrams from Basle, Dec. 24, follows: But the world cannot quickly adjust itself to Important changes in the course of credit and trade, and attempts to maintain the international balance of payments by large movements of gold weakened the monetary foundation of many countries. Germany's demands for capital to fill the gap left by the war and its aftermath was met to a substantial extent by an influx of capital estimated by the bankers' committee at 18 milliards of recihsmarks. Though 10 milliards of reichsmarks was an offset to reparations, the balance of 8 milliards, together with the German's own savings, led to a large development of public and private enterprises in the years 1925 to 1930. During that period of five years no less than 32.8 milliards of new capital were invested, of which 22.4 milliards represented investment by the public authorities. The expenditure of the Reich, the States and communes during this period increased in similar proportion to this capital investment. Although revenue rose rapidly from 14.7 milliards of reichsmarks, to 18 milliards, expenditure rose equally rapidly from 17.2 milliards to 20.8 milliards, and this excess of expenditure brought about an increase The report opens with an analysis of the present situation in Gerof debt which grew in disquieting fashion. many,on whom the effects of the crisis of this Summer were devastating. Though inflation had reduced the public debt by 1924 to a very Sweeping withdrawals of foreign credits played havoc with the financial system of Germany and led to a series of legislative enactments small amount, by 1931 it had grown to 24 milliards of reichsmarks, of which culminated in the emergency decree of Dec. 8 1931, which in- which one-third were for public undertakings. When the crisis came, the fact that expenditure was on so high a cludes measures without parallel in modern legislation. scale meant that the deficit was correspondingly large. In this connecGermany was particularly susceptible to the credit crisis because of tion the committee again call sattention to the system under which a the large amount of her short-term foreign debt. A census taken by the German Government showed twelve milliards of reichsmarks owing substantial part of the taxes levied by the Reich is automatically handed over to the States and communes—a system which means that control at the end of July. Prior to that date it was estimated that 2.9 mllliards had been with- of expenditure is divorced from the responsibility of raising revenue to drawn and since then 1.2 milliards have been withdrawn under the meet it. The committee thinks reform in this matter would have beneficial results. standstill agreement. The committee terminates this chapter by observing that every Against this exports have recently been heavy, but exceedingly long previous crisis has been followed by a period of stability and prosperity, credit has been given in many cases and the surplus of exports has been due in part to certain special causes, including pressure on manu- and that it would be unjudstiflable to judge its prospect for the future on the basis of an exceptional period of depression. At the present time facturers to sell stocks and some exceptional sales to Great Britain in the budgets of all countries and of most railways show deficits. To anticipation of tariffs. It is doubtful whether this surplus of exports can continue at its assume that equilbrium will not be regained after the present crisis recent level, in view of general adverse factors, including higher tariffs, would be a counsel of despair. This is as true of Germany as of other countries. In past years she has built up an immense and powerful exchange restrictions in other countries and sterling competition. The rough balance of payments shows that Germany will have had economic equipment. The restriction of markets and the fall in prices has prevented her to meet during the whole of 1931 withdrawals of capital amounting to from utilizing this to the full. The activity of her factories is now about 4.9 milliards of reichsmarks. After using other resources available to her this had caused a drain necessarily reduced. But the fact that so large a proportion of the capital in Germany— of gold and foreign exchange from the Reichsbank of 1.7 milliards of much of it repayable at a short term—was owned by foreigners made her reichsmarks. As a result the Reichsbank has had to take a series of measures of peculiarly vulnerable to financial disturbance. The withdrawal of such increasing stringency in order to limit other calls for foreign exchange credits involves a threat not merely to foreign exchange but to the which might be made upon it. Nevertheless it has continued to lose liquidity of banks themselves. But although it is impossible to fix a date, it is none the less certain reserves, while at the same tune it has been forced to extend its own credit to make up for sweeping losses of deposits by banks and savings that it will untirnately be restored, with the assistance of measures banks. Germany's industrial production fell betsveea 1928 and 1931 suggested in the conclusions of the committee's report. The committee has no doubt that as regards railways and the budget, by one-third, which has resulted in an increase of unemployment to a receipts are no less elastic than elsewhere. level of 8,000,000 wholly unemployed, out of about 21,000,000 emThe report summarizes the German emergency decrees of the last ployed persons. Interest rates have been high in Germany ever since inflation. During two years. The income tax has been raised twice, beer and tobacco 1930 advances to manufacturers of first-class standing have seldom cost taxes have been increased, and the turnover tax raised from 0.25 to 2%. Official salaries are reduced by 20%. Similar cuts apply to the local less than 8%. The figure is now about 12%. The decline in industrial activity with its effect on profits, wages authorities, who have also imposed a poll tax and new local taxes on and the level of unemployment seriously reduced the yield of taxation. beer and other beverages. Unemployment insurance contributions are raised to 6M%, prices If new taxes bringing in 1.5 milliards of reichsmarks had not been im- and rates are to be cut by 10% and wages reduced to about posed the decline in revenue in the last two years would have been level. The interest on long-term bonds is reduced by about the 1927 about 3.8 milliards, or 40% of the total. 25%. Control of banks has been set up, and new regulations made for Besides new taxation, sweeping economies have been made in the budget, particularly in the salaries of civil servants, which now are to savings banks. A stringent foreign exchange central operates, and drastic provisions against the flight of capital. be reduced about 20%, as compared wtilt 1929, and will be below the The question of how far the measures described above will be suclevel paid in 1927. cessful cnnot be answered at the present moment, but the committee Reductions also have been made in unemployment benefits and poor considers that the steps taken to defend and to maintain the stability relief. It is, however, an advantage to the German budget that the of the currency and the budget show, in their opinion, a resolute desire debt charge contained therein is comparatively low, and the sketch of on the part of the the budget for 1932, which was examined German Government to meet the situation. by the committee, contained In the final chapter the committee draws the conclusion from its a considerable sum for amortization of the short-term debt. survey of the facts that Germany would be justified in declaring, as In view of the measures taken in the last two years, and in particular she is entitled to do under the decree of Dec. 8 1931, the committee the Young Plan, that, in spite of the steps expresses the opinion that the she has taken to maintain the stability of her currency, she will not be burden of taxation in Germany has become so high that there is no able in the year beginning in margin for further Increase. July next to transfer the conditional part of her annuity. The decline in German business activity affected the position of the The committee, however, goes on to say that it would not consider railway system, which is finding it hard to make both ends meet in it had fully accomplished the present circumstances. But the committee its task if it had not drawn the attention of is of the opinion that the governments once conditions return to normal the German Railway to the unprecedented gravity of the crisis, the magniCo., fundamentally sound undertaking, will be able in the future—ifwhich is a tude of which undoubtedly exceeds the "relatively short depression" managed envisaged in the Young Plan, to meet which the "measures of on a commercial basis—to yield a net operating surplus safecomparable with guard" contained therein that earned by other big foreign railway systems. were designed. The annuities, Young series its of Plan, with rising Chapter 2 of the committee's report begins with a description of the contemplated world crisis, of which the outstanding feature is the fall in prices. All a steady expansion in world trade, not merely in volume but in value, forms of economic activity have been affected. Reduced purchasing in which the annuties payable by Germany would become a factor of power involved disappearacne of profits, unemployment and an unin- dimishing importance. In fact the opposite has been the case. Since the Young Plan came into effect, not only has the trade of the terrupted slump in Stock Exchange securities. The stability of banks has been imperiled and the withdrawal of world shrunk in value, but the very exceptional fall in gold prices that foreign capital from borrowing countries—particularly in Central Europe has occurred in the last two years has itself added greatly to the real —threatened the stability of currencies, which has resulted in control burden, not only of German annuities but of all payments fixed in gold. In the circumstances, the German problem—which is largely reof the exchange market and in certain cases suspension of foreign payments. The spreading of the crisis to lending countries involved the sponsible for the growing financial paralysis of the world—calls for abandonment of the gold standard by some of them, which has given concentrated action which the governments alone can take. But that problem has assumed world-wide range. There is no prerise to a tendency to hoard. The latest phase is the imposing of tariffs and other restrictions, which has still further reduced international trade. vious parallel in time of peace to the dislocation that Is taking place, and it may well involve a profound change in the economic relation of Commenting on this situation in relation to reparations, the committee recalls the dilemma referred to by the banking committee in August the nations to one another. Action is most urgently needed in a much last and points out the contradiction that might arise between a system wider field than that of Germany alone. The economic interdependence of the various countries of the involving large annual paymnets by debtor to creditor countries, which world at the same time putting obstacles in the way of free movement of goods. to-day needs no further proof. Recent years have most strikingly illustrated it. So long as fresh capital was being lent to the debtors the dilemma did not arise; but in 1929, when these capital movements ceased, it became Cites Danger to Europe. evident that in the long run, these annual payments must be met in Since July last, for example, it has been evident that if the form of goods. by which Germany has been overwhelmed were not remediedthe crisis it would 22 FINANCIAL CHRONICLE spread to the rest of Europe, destroy the crdeit system so painstakingly built up rand icreate profound repercussions in other parts of the world. The committee recalls that the bankers' committee in August last struck a note of warning in this connection, but events did not wait.. The year 1931 is not yet ended, and already the crisis has assumed formidable dimensions. le2 Economic activity continues with difficulty at a very low ebb in the face of restricted credit, rigid control of exchanges and paralyzing restrictions on international trade. The state of things is complicated by the reaction of economic affairs and political problems and vice versa. In examining this situation the committee suggests that the governments should particularly take note of various considerations: 1. That transfers from one country to another on a scale so large as to upset the balance of payments can only accentuate the present chaos. 2. Release of a debtor country from a burden of payments which It is unable to bear may merely have the effect of transferring that burden to the creditor country, which, in its character as debtor, it in turn may be unable to bear. 3. Adjustments of all reparations and other war debts to the troubled situation of the world—and this adjustment should take place without delay if new disasters are to be avoided—is the only lasting step capable of re-establishing confidence. It is the very condition of economic stability. Finally, although the German Government is energetically defending the stability of its currency, steps are necessary to secure that these measures shall have permanent effect. Destruction of the work which the European governments have undertaken in recent years in order to re-establish the stability of currencies would mean an extremely disquieting setback heavy with consequences. The report ends with an appeal to the governments to permit no delay in dealing with this great crisis which weighs so heavily on all elite. The text of the report except for the preamble, which thanked the Bankfor International Settlementsfor the services of Its technical staff and the loan of the meeting place, and for the annexes containing the documents presented by the German Government, was contained in Associated Press accounts:fromlBasle, Dec.24, which we:quote:as follows from the New York "Times": CHAPTER 1. The circumstances in which we have been called together are so well known no lengthy recpaitulation of events is necessary. The world depression started two years ago, and gradually gathered force until it broke in the summer's credit crisis. Every country has been shaken by that crisis, but the effects in Germany as well as in some countries of Central and Eastern Europe were devasteting. Sweeping withdrawals of foreign credits led to the crippling of the German banking system, and strained the reserve and credit position of the Reichsbank to the uttermost, so that in order to protect the currency it was necessary to impose stringent measures of exchange control which accentuated the already serious restriction In the volume of economic activity. The pressure upon the whole structure of Germany culminated in the emergency decree of Dec. 8 1931. which includes measures without parallel in modern legislation. The following paragraphs sketch in brief and outline of the situation which these developments created in Germany to-day. Germany was peculiarly susceptible to a credit crisis by reason of the large amount of her short-term foreign liabilitfels. In the first seven months of 1931, Rm. 2,900,000,000 of short-term credits were withdrawn, principally in June and July. "Rm." is the symbol for the German reichsmark, with a par value of 23.8 cents. The German Government census of the the amount offoreign capital in Germany on July 28 shows that the total commercial debt, in particular the amount lent at short term, was even larger than was indicated in the available figures which were submitted to the bankers' committee early in August last. This census indicates that the total of the advances repayable by Germany at short term outstanding at the end of July amounted to nearly 12 milliards. But this figure of Rm. 12,000,000,000 includes nearly Rm.4,000,000,000 of non-banking credits, which in all probability are not so likely to be withdrawn to the same extent as banking advances, and to a considerable extent are set off by direct counter-assets. "Standstill" Agreement. The standstill agreement, under which the banking creditors of Germany undertook not to call in their credits for six months as from Sept. 11931, applies to rather more than half of the Rm. 12 milliards. The standstill agreement, however, permitted the repayment of certain credits, and under these provisions sums estimated at Rm. 1,200,000,000 have been withdrawn during the period ended Nov. 30 1931. Some setoff for recent withdrawals has been found in the fact that they have coincided with a growing export surplus which began at the end of 1929. The figures are as follows: (In Millions of Reichsmarks.) Surplus of Imports. Exports Exports. 99 +92 1,051 1925-1929 monthly average 1,033 +137 866 1930 monthly average 794 +160 834 January to June 1931, monthly average 827 +265 562 July 1931 803 +349 454 August 1931 835 +387 448 September 1931 879 483 +396 October 1931 749 482 +267 November 9131 High Level of Exports for Future Is Doubted. The recent heavy export surplus is in part the result of certain abnormal factors, and it is doubtful it economic conditions will permit it to continue at the same high level. Exports have been maintained partly because of the need for cash has put pressure on manufacturers to sell off stocks, in many cases at a loss, while some exceptional sales have been made to Great Britain in anticipation of tariffs. Imports have been reduced because unemployment, lower wages and high taxation have reduced the consuming power of the country, and therefore the demand for imports of consumable commodities. The general reduction of industrial activity has curtailed the demand for imports of raw and semi-finished materials, and in any case the sharp reversal in the flow of foreign credit handicaps purchases abroad. The surplus has, moreover, been increased by the fact that up to now the world price level of the type of goods imported into Germany, viz., FoL. 134. raw materials, foodstuffs, &c., has fallen much more than that of the type of goods exported by Germany, viz., finished products. But it is impossible to disregard the existence of powerful general factors adverse to the continuance of this favorable development. Tariffs, exchange, control measures Mother countries, import restrictions and contingents? together with the enhanced competition Germany is likely to meet through the depreciation of sterling and other currencies, all tend to hamper German exports; on the import side it will be necessary for Germany to replenish her stocks of raw materials and to purchasefood from abroad. In any case, the surplus represented by the above figures has not become immediately available to Germany in the form of foreign exchange which can be utilized to repay debts. In view of the prevailing lack of confidence, there has been an increasing tendency to call upon Germany to pay cash for her imports, while she has had to give extended credits for her exports. In particular, German exports to Russia, which are running at about 80,000,000 reichsmarks a month, on the average of the last four months,have been made on very long credit terms. On the other hand, even exporters have been able, in spite of legal restrictions, to keep abroad part of the foreign exchange resulting from exports. Taking the year as a whole, the extent of the exodus of capital which Germany has to meet by means of an export surplus (disregarding the qualification explained in the preceding paragraph), together with such other resources as have been available to her,is indicated by the following rough balance sheet for the year 1931: Exportsurplusfor year (est.) incl.services & deliveries in kind 3,000,000,000 1,300,000,000 Utilization of foreign assets of German banks Rediscount and other credits incl. that from Central banks 1,200,000,000 Settlements International for Bank and the 1,700.000,000 Drawn from gold, &c., reserve of Reichsbank 7,200,000,000 Total 800,000,000 Reparations to June 301931 Int.& normal amortization on Germany's foreign liab.(est.).- 1.500,000,000 4,900.000,000 Balance representing capital withdrawn 7,200,000.000 Total An examination of the above table, which can obviously be only an estimate, as will be seen from the report of the subcommittee, shows how great a part of Germany's income from the surplus of exports has been absorbed by the amounts required for the interest and normal amortization of her foreign liabilities and for reparation payments before the Hoover plan. Heavy Gold Drain Influutle! Reichsbank's Policy. The withdrawal of capital, besides exercising considerable pressure on the balance of trade, as already described, forced Germany to have recourse not only to reserves held against their foreign liabilities by German private banks, but also to increase such credits as were commercially available by the rediscount credits granted to the Reichsbank and the Gold Discount Bank. This did not obviate heavy sales of gold, and the striking feature of this balance sheet is the drain which the withdrawals of capital has placed upon the reserve of the Reichsbank, which has profoundly influenced the policy of the latter. The Reichsbank reserve, which stood at Rm. 2,685,000,0001at the end of 1930, and even at Rm. 2,576,000,000 at the beginning of June 1931, had fallen to 1,610,000,000 on July 31 1931. Of this last amount, however, it owed at short-term Rm. 630,000,000 in respect of the rediscount credits granted to it by the Bank of International Settlements and central banks, and to the Gold Discount Bank by an American banking consortium. In order to insure that the necessary foreign exchange should be available to meet the service of Germany's long-term debt, for such repayment of short-term credits as is permissible under the standstill arrangements, and for the imports necessary to Germany, the Reichsbank has been forced to take or recommend a series of measures of increasing stringency in order to limit to the greatest possible extent the other calls for foreign exchange which might he made upon it. -Nevertheless, the reserve has fallen still further, until on Dec. 15 1931 it was no more than Rm. 1,161,000,000, of which Rm. 630,000,000 represent the amounts due under the rediscount credits referred to above. Percentage Cover for Note Circulation. The percentage cover for note issue has thus fallen to 25.6% or, if the Rm. 630,000,000 be excluded, to 11.7%. The note circulation itself amounts to approximately Rm. 4,600,000,000, which compares with a figure of Rm. 4,300,000,000 a year ago. In view of the reduction of business activity the last year, as well as of certain measures taken to economize in the use of currency, the present note circulation is high; this may be attributed to a decrease in the velocity of circulation and to a certain tendency on the part of the public to hoard notes. An important change in the situation is revealed by an examination of the volume of bills now held by the Reichsbank and the private banks, respectively. Before the crisis the proportion of gold and foreign exchange to the total note issue fluctuated around 60%; e.g., on April 4 1931, the Reichsbank held gold and exchange reserves of Rm. 2,526,000,000 and domestic bills of Rm. 1,520,000,000, against a total note issue of Rm. 4,340,000,000; i.e., 58% of the note issue was covered by gold and foreign exchange. Opinion Withheld on Bank Rate Reduction. At the same time the credit banks held nearly 2,900,000,000 retellsmarks of domestic bills, representing an immediately liquid asset which the banks held as a reserve against their deposit liabilities. The heavy withdrawal of deposits from the credit banks during the crisis, whether by external or internal creditors, induced the banks to seek assistance from the Reichsbank by discounting such material as they had available, and in addition creating (to some extent, with the assistance of the Acceptance and Guarantee Bank), further material for discounting with the Reichsbank. The latter has thus, to a considerable degree, extended its own credit in substitution for the deposits and other credits which have been withdrawn from the credit banks as well as from savings banks. As a result, the domestic bill holding of the Reichsbank on Dec. 15 1931 amounted to 4,203,000,000 reichsmarks (Including 542,000,000 retch'smarks of bills set aside against credits granted to the Reichsbank as referred to above), while that of the credit banks on Oct. 10 1931 (the last available date), has fallen to 1,792,000,000 reichsmarks. In these circumstances we hesitate to express an opinion on the advisability of the recent reduction in the Reichsbank rate. In order, as far as possible, to protect the external position—the reichsmark exchange and the export market—Germany has pursued a deliberate policy of stringent and sharp reduction of the level of wages and prices. The index figure of wholesale prices fell from 140 in November 19281 o 106 in November 1931, and prices are further to be reduced under the emergency decree of Dec. 8 1931, while wages are reduced JAN. 2 1932.] FINANCIAL CHRONICLE under that decree to approximately the level prevailing at the beginning of 1927. Taking 1928 as 100, the index of industrial production rose to 101 in 1929, fell to 86 in 1930, and for September 1931 (the latest figure available), it has fallen to 66; in other words, one-third of the industrial life of Germany has stopped. This gradual atrophy of industrial and commercial activity has further increased unemployment, which was already high before the crisis. The figure of unemployed (excluding part-time workers) on Dec. 1 1931 had reached a level of 5,000,000 out of approximately 21,000,000 employed persons. The crisis has also seriously affected German agriculture, which in 1925 employed about 30% of the working population of Germany. Having contracted debts at high rates of interest when prices were high, it now finds it difficult, if not impossible, to earn sufficient to meet the Interest on these debts, and measures of -protection and of financial relief, amounting almost to a moratorium, have been taken in order to prevent general collapse. Ever since the inflation period the demand for capital in Germany, in relation to the supply from domestic sources, has kept interest rates above those prevailing in other countries. During 1930 advances to manufacturers of first class standing seldom cost less than 8%;in recent months the cost has been about 50% more; i.e., rates have risen to about 12%. This burden naturally imposes a heavy strain on German industry, and is one of the causes of the present decline in industrial activity. Slump in Taxes Produces Critical Situation. The decline of economic activity, the fall of profits resulting from the fall in prices, and the lower yield of the taxes on wages due to increased unemployment and lower wage rates, have seriously reduced the yield of taxation. This fall (taken in conjunction with cost of maintaining the growing army of unemployed) has produced a critical situation in the public finances of Germany. In the five years preceding the depression the revenue and expenditure of the Reich, the Federal States and Communes showed a rapid increase. Owing to a system of taxation under which the latter received a proportion of the taxation collected by the Reich, the situation can best be shown by combining the budgets of all the authorities concerned. The figures are shown in the following table, which also gives the total expenditure of all these authorities, including expenditure covered by receipts from State property, from loans and from other sources (all figures are in millions of reichsmarks): Taxes Raised and Retained by the Reich Expenditures of the Reich. i.e., Excluding Tax Transfers to the States. 1926-27 6,561 1926-27 , 1927-28 7.154 1927-28 6,357 1928-29 8,375 1928-29 6,568 1929-30 7,987 1929-30 8,193 6,686 1930-31 1930-31 6,634 Taxes Raised by States and Communes. Expenditures ofOther Authorities. Including Tax Transfers from the Retch. 1926-27 10,639 6,363 1926-27 1927-28 7,189 1927-28 1,647 1928-29 7,730 1928-29 12,426 1929-30 7,593 1929-30 12,836 7.482 1930-31 1930-31 12,770 (Including contribution of railway company.) The expenditure of the Reich inc udes an item for reparations which rose from Rm. 1,300,000,000 in the year 1926-27 to Rm. 1,800,000,000 In the year 1930-31; i.e., about l2% of the total tax revenue of the Reich, the States and the Communes. The revenue receipts for 1930-31 fell considerably short of the original estimates. The position in 1931-32, in which the revenue was expected to equal that actually received in the preceding year, has rapidly deteriorated. Fresh estimates made in September 1931, showed an estimated fall in the total receipts from taxes collected by the Reich (including amounts subsequently transferred) of not less than Rm. 1,000,000,000. It is further estimated that the yield of taxes collected by the Reich at the rates in force prior to the recent decree will show a further fall next year of Rm. 1,000,000,000 and amount to no more than Rm. 7,250,000,000, as compared with receipts of Rm. 9,250,000,000 in 1929-30. This fall of Rm. 2,000,000,000 is after taking credit for the seires of measures imposing taxation during the preceding two years, amounting to Rm. 1,500,000,000. Had the rates of taxation not been increased, therefore, the revenue would have fallen off in the last two years by some Rm. 3,500,000,000, or about 40%. It is estimated that the present decree will raise the revenue to approximately the same level as in the present year, i. e., about Rm. 8,000,000,000. Apart from the increase in taxation referred to above, attempts are being made to meet the falling off in revenue by sweeping reductions in expenditure. So far as the Reich is concerned, expenditure on all objects other than service of the debt, transfers to the Federal States external war burdens, and emergency unemployment relief, has been reduced from 1929 to 1932from Rm.4,780,000,000 to Rm.3,720,000,000, 1. e., a reduction of Rm. 1,060,000,000, or 22%. All Branches Cut Expenditures. Measures similar in character have been taken by the Federal States and by the Communes. The latter were empowered about a year ago to increase taxation and they were asked to reduce expenditure, and in any cases where these powers have not been exercised the competent higher authority may step in to see that the necessary measures are taken. Part of the economies effected have, however, been offset by the increased cost of unemployment relief, due to the growth of unemployment in the last two yea's. It has been possible to effect considerable economies in this sphere by reducing the average monthly benefit paid to the unemployed,which from a former average of Rm.80.93 has fallen to Rm.63.86 in 1931. Expenditure under the emergency relief system, which averaged Rm.71 a month, has dropped to Rm.60.75, while welfare relief payable by the Communes —varying according to the locality—may be estimated proabably in the neighborhood of Rm. 50 monthly. It is, however, an advantage from the purely budgetary point of view that the internal debt and the annual charge which it involves is comparatively very low as a result of the inflation prior to 1924, which wiped out the greater part of the previously existing debt. On the other hand, the German Government in the sketch estimate for 1932 has included a considerable sum for amortization of the short-term debt incurred to meet the deficit of previous years. This provision had been made by Germany in view of the fact that the shortage of credit is such that the Government is practically unable at present to rely on borrowing in the money market in order to meet its maturing short-term obligations. In view of the measures taken in the four decrees relating to taxation and expenditure issued in the last two years, and in particular in that of Dec. 8 1931, the committee is of the opinion that the burden of taxation has become so high that there is no margin for a further increase. 23 The growing stagnation in German business activity has naturally been reflected in the gross receipts of the German Railway Co., which fell in 1930 by 14.6%,as compared with 1929. Although energetic measures ox economy were taken to meet this loss of income, the surplus of receipts over operating expenses fell from Rm. 860,000,000 to Rm.480,000,000, I. e., Rm.180,000,000 short of the amount necessary to cover the reparaliability. A further fall has taken place in 1931, the receipts of which are 28% below those of 1929, and it is estimated that the surplus of receipts over operating expenses will amount to only Rm. 178,000,000. Future Prospect for German Railway Good. In these circumstances the railway in 1931 will not be able, even after drawing upon its reserves, to cover out of earnings the liabilities incumbent upon it in respect of reparation and debt charges, though the cash position is met by the financial arrangements made between the German Government, the railway and the Bank for International Settlements connection with the Hoover Plan. It is impossible to estimate what will be the operating results of the year 1932. Nevertheless, the subcommittee who were asked to resport upon the position of the German Railway Co. came to the conclusion that once Germany and the world at large had recovered their balance and returned to something lihe the economic conditions which we are accustomed to regard as normal, the railway company,fundamentally a sound undertaking, will be able in future years, if managed on a commercial basis, to yield a net operating surplus comparable with that earned by other big foreign railway systems. CHAPTER 2. The circumstances and conditions which have led to the present situation: The circumstances and conditions which have led to the situation we have been describing are partly international and partly peculiar to Germany. Like all other countries, Germany has suffered from the consequences of the extinme fall of prices, which is the characteristic trait of the international economic life since the end of 1929. The fall of about 30% of wholesale prices in the world as a whole far exceeds in magnitude the fall in prices that has taken place in any period of depression in the last 100 years. It is impossible to say if this fall is permanent or if it will be followed, after the acute depression has passed away, by a substantial rise. What is certain is that it has deeply affected all economic activity and that no effort to maintain prices—by whatever means it may have been attempted—has hitherto attained any success. The sharp reduction of the purchasing power of the large masses of consumers has involoved in the last two years a reduction or the complete disappearance of industrial profits, serious unemployment and an uninterrupted slump in stock exchange securities. It has threatened in consequence the status of a large number of banks; this banking crisis in its turn has provoked a general lack of confidence and involved a withdrawal of foreign capital from countries which hitherto have had the use of it, and in particular from Central Europe. It has only been possible to maintain the exchange value of the currencies of some of these countries on a nominal basis by a system of decrees regulating the exchange market and by a suspension of part of their foreign payments. This situation has naturally aggravated the "crise de confiance" in the lending countries themselves. The abandonment of the gold standard by certain of them has created a fresh source of disturbance in international tradng relations and given rise to a universal tendency to hoard, which, if it we:e to continue, would bring to a stanstill the whole system of credit. Finally, to this monetary crisis is now being added a tariff crisis, each country seeking to defend its diminished production against foreign imports by afresh increase in import duties and other forms of trade restrictions, which in turn result in a stillfurther snri1.age of international trade: Say Payments Can Be Made Only in Goods. We cannot here attempt to examine all the underlying causes of this profound disturbance to the economic life of the world, but certain of its aspects are intimately linked with the problem with which we are directly concerned. Among these factors, the banking committee which met in Basle in August had called attention to the fact that "in recent years the world has been eade,avoring to pursue two contradictory policies, in permitting the development of an international financial system which involves the annual payment of large sums by debtor to crditor countries, while at the same time putting obstacles in the way of the free movement of goods," and that the case of Germany provides a most forcible illustration of this dilemma. So long as the payments to be made were offset by loans to the debtor country this dilemma did ncit arise, but as soon as such capital movements ceased, as happened in the Autumn of 1929, it becomes evident that in the long run, as the Dawes committee clearly pointed out, these payments can only be made in the form of goods. The change from a period of excessive expansion of foreign lending by certain creditor countries, followed by an abrupt cessation of. such lending, constitutes one of the chief points of contrast between the period of 1924-29 and 1930-31, and has been one of the principal features in the credit situation of recent times. If barriers are imposed to the free movement of goods the world cannot readily adapt itself quickly to important changes in the course of credit and trade. Attemps to maintain the international balance of payments by means of larger and abnormal movements of gold have weakened the monetary foundations of many countries. In fact, when the withdrawal of large sums of capital took place the gold reserves of the countries concerned proved quite inadequate to stand the strain. This led in some countries to a strict control of foreign payments and in others to the suspension of the gold standard. Germany's demand for capital to fill the gap left by the war, the aftermath and the inflation, was very great. As a matter of fact, the influx of foreign capital which began as soon as the mark was stablized and which was estimated by the bankers' committee to be about Rm. 18,000,000,000 has been partly offset by the Rm. 10,300,000,000 of reparation payments. But in any case, between 1925 and 1930 Germany has invested a very large amount of capital in both private and public enterprises. She has, for example, reconstructed the merchant fleet, has modernized and nationalized many of her industries, and her towns have carried through large programs for public purposes. Figures furnished by the German delegation show for the period of 1924-29 the investment of a sum amounting to Rm. 32,845,000, of which Rm. 22,428,000 represent investments by public authorities, for public utilities, housing (other than houses financed purely by private means), roads, canals, dm. These sums have, of course, been forthcoming partly from Germany's own savings, which reached very high figures in the course of recent 24 FINANCIAL CHRONICLE years. But the foreign holding of so large a proportion of her capital wealth makes her peculiarly vulnerable to financial disturbance, particularly to the extent that this capital is withdrawable at short notice. Part of Short- Term Credits Immobilized. Moreover, a substantial part of these short-term credits have proved to be immobilized in long-term investments. Withdrawal of these credits must therefore threaten not only the exchange but also the liquidity of banks themselves. Turning to Germany's budgetary situation, the rapid development of Germany's economic activity in recent years has been paralleled by an increase of governmental expenditure. The continued increase of expenditure from 1925 to 1930 has absorbed as fast as it came into being the growing taxable capacity of Germany. In spite of a rapid increase in normal receipts, which increased between 1926-27 and 1929-30 from Rm. 14,719,000 to Rm. 18,054,000, the increase of expenses has been equally rapid. Indeed, they have risen from Rm. 17,200,000 to Rm. 20,823,000 and have resulted in an increase of debt. Among the expenditure items,- outgoings for buildings, education and social charges (chiefly due to increasing unemployment) have continuously increased and now represent 43% of the total expenditure, and amount in 1929-30 to Rm. 8,897,000. While expenditure thus increased, the debt grew in a disquieting fashion. When stabilizing took place, inflation had reduced the public debt to very small amount. On the other hand, by 1931 this debt reached more than Rm. 24,000,000,000, of 'which Rm. 8,400,000,000 were for public undertakings (water, gas, electricity, transport and roads), for the building of houses and for various public works (hospitals, sanatoria, dm.). In particular, from 1928 to 1931 the debts of the States and communes increased from Rm. 7,500,000,000 to Rm. 12,700,000,000. When the crisis came, with the inevitable reduction of private incomes and budgetary receipts which it naturally involved, the fact that expenditure had been so high meant that the deficit was correspondingly large. This policy of growing expenditure and also the system of financial relations which exist between the Reich, the States and Communes have often been the subject of criticism. The Reich levies taxation of which it retains part only, and of which a proportion fixed by law is automatically banded over to the States and Communes, which only cover their expenditure from their own resources to the extent of 75%. Such a system means that the control of expenditure is divorced from the responsibility of raising the revenue to meet it, and although the system may have been moderated by recent ordinances of the region, we think that reform in this matter would have beneficial results. In concluding this anlysis of the circumstances and conditions which have given rise to the present budgetary position of Germany, the following observation should be made: Notwithstanding the exceptional character of the present crisis, there is no instance in economic history of a crisis, no matter how great, which was not followed by periods of stability and prosperity. Just as it would be wrong to forecast a country's economic future on the basis of a period of prosperity, so it would be unjustifiable to judge its chances for the future on the basis of a period of depression. Same Problem and Remedy Everywhere. At the present time the budgets of all countries and of almost all privately or publicly owned railways show a deficit. In every country efforts are being made to restore the equilibrium of these budgets by cutting down expenditure and by adjusting receipts to changed conditions. To assure that in the present case equilibrium will not be regained would be a counsel of despair. What is true of budgets and railways of other countries is obviously equally true of Germany. In past years Germany has built up an inmense and powerful economic equipment, capable of yielding a great - return. The restriction of markets and the fall of prices have prevented her from utilizing this equipment to the full. The activity of her factories is now necessarily reduced, but although it is impossible to fix a date for her recovery of stability, which is still threatened to-day, it is none the less certain that this stability will ultimately be restored with the help of the neasures suggested in Chapter 4. In the course of our investigations we were able to ascertain from the figures submitted to us that, as regards both railways and budget, receipts are no less elastic in the case of Germany than elsewhere. On the other hand, it would be rash, both in the case of Germany and in the case of other countries, to presume to indicate the precise moment at which this exceptional and unfortunate period through which we are now passing will come to an end. CHAPTER 3. Special measures taken by Germany to meet the crisis: In the course of its deliberations the committee had the opportunity of receiving a synopsis of the special measures taken by the German Government by form of emergency decrees, as from July 1930, in order to meet the increasing difficulties of the situation. The primary object of the German Government was to secure the stability of the currency and in general the functioning of the German economy within the frame of world economy. To this end they devoted all their efforts in securing the balance of the budget, not only in the Reich but also in the States and communes. Direct taxation was augmented by two increases in the income tax; indirect, by the imposition of further heavy duties on beer and tobacco, while finally the turnover tax has lately been increased from 0.85 to 2%. Sweeping economies have been effected in the expenditure of the Reich; a series of cuts in the salaries of all servants, reducing them by over 20%, has been made in the last 18 months so that salaries will be now on lower level than at the beginning of 1027. Similar measures have been taken with regard to the budgets of the Federal States and the communes. The latter have been authorized, and in certain cases compelled, to levy new and additional taxation in the form of a poll tax, a local beer duty and a tax on beverages. The reductions in salaries apply also to officials employed by these bodies. Wages Are Cut, Likewise Rents. A further main point in the program of the government was the reduction of wages, while considerable reductions in the score and scale of the benefits paid by the Insurance Institute have been made. A further main point in the program of the government was the reduction of prices and wages. Prices were generally reduced by 10%. Rents are being reduced to a similar percentage. Even the rates of Interest on long-term obligations must be reduced by about 25%. In the sphere of wages, a general reduction to approximately the level prevailing at the beginning of 1927 has to take place. The magnitude of the crisis forced the government to emergency measures in the field of credit policy. Such measures have been taken [VOL. 134. for supporting a series of banking institutions and for strengthening the position of the money market. A system of general control of the banks has been set up, with a commissioner responsible to a board, including representatives of the Reichsbank and of the competent government authorities. New regulations have been made for the carrying on of the business of t'he savings banks and allied institutions, in particular limiting the extent to which they may finance the municipalities in the future. For the time being they are not allowed to grant them new credits. The law governing public companies has been revised and the provisions regarding the responsibility of directors sharpened, while new regulations are made regarding the auditing of accounts. Transactions in foreign exchange have been centralized in the Reichsbank with a view to limiting the purposes for which foreign exchange may be acquired, and all purchases of foreign exchange require prior authorization. All persons becoming possessed of foreign exchange, whether by exports or otherwise, are compelled to offer their holdings to the Reichsbank. It is no longer possible to remit abroad the proceeds of sales of securities on behalf of foreigners. Stringent provisions seek to limit the flight of capital. All the above-mentioned prescriptions are secured by heavy penalties (fines and prison). Repayment of foreign credits is regulated by the standstill agreement, or, if not covered by this agreement, under decree. Finally, in order to prevent widespread collapse of agricultural credit, measures amounting practically to a moratorium for agricultural debts have been taken, chiefly for the eastern parts of Germany. Farmers suffering from special difficulties are allowed to appeal for protection against foreclosure or distraint on condition that they carry on their business under the supervision of trustees, pending approval of a scheme for relieving them of the immediate burden of their debts. Such schemes may provide for the reduction of interest rates and diminution of the capital debt, in certain cases even without the consent of creditors. The question how far the measures described above will be successful cannot be answered at the present moment. But the committee considers that the steps taken to defend and to maintain the stability of the currency and budget show, in their opinion, a resolute desire on the part of the German Government to meet the situation. Postponement of Conditional Annuities Justified. CHAPTER 4. Conclusions: It is evident from the facts outlined in the preceding chapters that Germany would be justified in declaring—in accordance with her rights under the Young Plan—that in spite of the steps she has taken to maintain the stability of her currency she will not be able in the year beginning in July next to transfer the conditional part of the annuity. The committee, however, would not feel that it had fully accomplished Its task and justified the confidence placed in It if it did not draw the aetention of the governments to the unprecedented gravity of the crisis, the magnitude of which undoubtedly exceeds the "relatively short depression" envisaged in the Young Plan—to meet which the "measures of safeguard" were designed. The Young Plan, with its rising series of annuities, contemplated a steady expansion in world trade, not merely in volume but in value, in which the annuities payable by Germany would become a factor of diminishing importance. In fact, the opposite has been the case. Since the Young Plan came into effect, not only has the trade of the world shrunk in volume but the very exceptional fall in gold prices that has occurred in the last two years has itself added greatly to the real burden, not only of German annuities but of all payments fixed in gold. In the circumstances the German problem—which is largely responsible for the growing financial paralysis of the world—calls for concerted action which the governments alone can take. But the problem has assumed a world-wide range. We can recall no previous parallel in time of peace to the dislocation that is taking place and may well involve a profound change in the economic relations of nations to one another. Action is most urgently needed in a much wider field than that of Germany alone. The economic interdependence of the various countries of the world today needs no further proof; recent years have most strikingly illustrated it. Since July last, for example, it has been evident that if the crisis by which Germany has been overwhelmed were not remedied, it would spread to the rest of Europe, destroy the credit system so painstakingly built up, and cause profound repercussions in other parts of the world. The committee appointed by the Bank for International Settle`ments, on the invitation of the London Conference, after describinguthis situation In its report of Aug. 18 1931, sounded a most emphatic note of warning, urging that if disasters were to be avoided before the period of postponement of credits recommended by that conference expires on Feb. 29 1932, immediate steps must be taken by the governments. But events did not wait. The year 1931 has not yet ended, and already the crisis has taken formidable dimensions, shattering the exchanges of many countries one after the other and accumulating difficulties which, if not dealt with, will only prove the forerunners of further catastrophies. Unemployment has increased; stock exchanges remain closed; economic activity continues with difficulty at a very low ebb in the face of restricted credit, rigid control of the exchanges and paralyzing restrictions on international trade. Slowly the effects of shrinking economic activity are making themselves felt in one country after another. How Depression Affects Political Stability. This state of things is complicated by the repercussion of economic affairs on the political situation and vice versa. The economic decline which has taken place in the last two years, the increasing distress which it has brought in its train, have produced a general political instability from which an anxious world is suffering more and more. Similarly, political considerations have often been allowed to influence the treatment of economic problems by the governments, thus preventing the latter from viewing these problems in their true light and from dealing with them on their merits. When governments come to examine the whole group of questions allied to the subject of the present report, they will have to take account of many matters relevant to these complex problems—which can only be solved in conformity with economic realties. In this connection certain considerations seem to us of great importance. The first is that transfers from one country to another on a scale so large as to upset the balance of payments can only accentuate the ptesent chaos. It should also be borne in mind that the release of a debtor country from a burden of payments which it is unable to bear may merely have the effect of transferring that burden to a creditor country, which, in its character as a debtor, it in its turn may be unable to bear. JAN. 2 1932.] FINANCIAL CHRONICLE Again, the adjustment of all intergovernmental debts (reparations and other war debts) to the existing troubled situation of the world— and the adjustment should take place without delay if new disasters are to be avoided—is the only lasting step capable of re-establishing confidence, which is the very condition of economic stability and real peace. Finally, although the German Government is energetically defending the stability of its currency, steps are necessary to secure that these measures shall have a permanent eifect. The European governments during recent years have made great efforts toward re-establishing the stability of currencies after the disasters of war and post-war inflation. The destruction of this work would mean an extremely disquieting setback, which would be heavy with consequences. The maintenance of the stability of German currency, as of the currency of any debtor nation, may be placed in the greatest peril if the confidence is lost. We appeal to the governments on whom responsibility for action rests to permit of no delay in coming to decisions which will bring an amelioration of this grave crisis which weighs so heavily on all alike. The report is signed by the following: Professor Alberto Beneduce, Italy, Chairman. Dr. Rudolf G. Bindschedler, Switzerland. Hendryk Collin, Holland. George Djouritch, Jugoslavia. Emile Francqui, Belgium. Sir Walter T. Layton, Great Britain Dr. Carl Melchior, Germany. Da'smoke Nohara, Japan. Charles Rist, France. Otto Rydbeck, Sweden. Walter W.Stewart, United States. Summary of Five Annexes to Report of Advisory Committee on Germany's Inability to Pay Reparations. A summary (Associated Press) of the five annexes to the Young Plan Advisory Committee's report bearing on Germany's ability to pay reparations is taken as follows from a Basle cablegram, Dec. 24 to the New York "Herald Tribune": Annex one is a letter from the Reich asking for the convocation of a special advisory committee. It is dated Nov. 19 1931. Annex two is a report of the sub-connnittee on statistics regarding the interest and amortization of German foreign indebtedness. Summarizing the results of the sub-committee's deliberation on this subject and taking into full account all reservations made, it says, the gross service of the German foreign debt for the year 1932 could be tentatively estimated as: First—Long-term debts divided into foreign currency, 670,000,000 to 820,000,000 reichsmarks. Second—Long-term debts issued publicly, 15,000,000 recishmarks. Third—German internal bonds, 24,000,000 reichsmarks. Fourth—Shares, participations in real estate, drc., 150,000,000 reichsmarks. The short-term debts were estimated at 600,000,000 to 700,000,000 reichsmarks, making a total of 1,600,000,000 to 1,850,000,000 retellsmarks. Annex three is a report of the sub-committee regarding German assets abroad. The conclusion was finally reached that for 1932 German interest receipts on foreign investments might be put in round figures at between 300,000,000 to 400,000,000 reichsmarks. The sub-comimttee reported it was not possible to provide an estimate of the total property owned by Germans abroad. The conclusions drawn, it was said, take into account present conditions only and should be accepted with reserve in view of the prevailing economic stability. Annex four is a report of a sub-committee on the German budget, particularly the development of total expenditures, not only of the Reich, but of the Federal States and municipalities with attention to expenditures of these bodies on housing, education and social welfare. Education expenses rose as a result of an increase in the level of salaries, which salaries were considerably above the level of certain countries in Western Europe, although practically equivalent to that in other countries. These salaries rose from 2,167,000,000 marks in 1926-27 to 2,733,000,000 marks in 1930-31, but the sub-committee was informed that the expenditure on education will show a considerable decrease in the current year as a result of the lowering of salaries and other measures. Housing expenditures rose from 861,000,000 marks in 1926-27 to 918,000,000 in 1930-31. Out of a total of 306,000 houses erected in the calendar year 1930, 40,000 had been erected with some sort of assistance from public funds. The sub-committee noted that a greater part of the money spent on housing had been raised by taxation. The sub-committee noted that out of a total increase of debts in the amount of 9,480,000,000 marks, 4,160,000,000 were contracted by municipalities from the end of 1928 to the end of March 1931. "Under the full reserve of the difficulty of giving exact estimates in the present conditions, the German member of the sub-committee presented certain figures which prove that against an increase of certain taxes, mainly the increased turnover tax, others showed a decrease in yield which was about equal to the estimated increases," the sub-committee reported. "The sub-committee felt unable, with the knowledge at its disposal, to criticize the estimates prepared by the German taxation experts. Nevertheless they formed an opinion that the figures before them could not be considered as showing the situation in an unduly pessimistic light. As far as some sources of revenue are concerned, there seems to be even serious reason to fear that the estimated figure will not be reached. • "Turning to the estimates of expenditure, the German member of the subcommittee explained that internal war charges would be reduced in 1932 because the irecelpients of war pensions were fewer in numbers and because under recent decrees the rates of payments had been reduced. The expenditure on personnel was reduced as an effect of the new emergency decree. The miscellaneous expenditure maintained the reduction effected for the present year under the recent emergency decrees, and it was doubtful whether this hope would be realized even though the fall in prices would give some assistance. "As regards social charges, the German member of the subcommittee referred to the explanations, he had already given to the main Committee as to the danger of reducing the amounts paid for unemployment and poor relief and showed that it was incumbent upon the Reich to provide those municiplaities which were particularly hard hit by the present crisis with some assistance towards meeting their obligations in this respect. He doubted whether the figure shown in the sketch budget for 1932 would be sufficient in view of the continuance of the crisis. 25 "The subcommittee devoted special attention to the item for the public debt. As had been explained in the main Committee,thefigure of 1,420,000,000 reichsmarks for 1932 contains approximately 870,000,000, which will go in the reduction of the debt. Four hundred and twenty million reichsmarks of this represents the legal sinking fund. A further 350,000,000 reichsmarks represents the amount necessary to cover the deficit remaining from 1930 which had risen solely on the ordinary budget and, in accordance not only with the fundamental budget law of Germany, but also in accordance with all principles of sound public finance, should be covered without delay. The remaining 1,000,000,000 reichsmarks is in respect of treasury bonds maturing in 1932. "It was pointed out to the sub-committee that repayment of this amount of the debt during a year of severe crisis represented a very heavy burden on the German budget. Should these figures be fulfilled, approximately one-half of the floating debt would be repaid and oneeleventh of the total debt of the Reich. While this consideration was fully appreciated by the German member of the sub-committee, he pointed out that the situation of Germany was that the budget had exhausted its last resource; should the estimates of taxation prove optimistic or should expenditure have to be incurred in excess of that shown, the German Government would have no recourse save to call upon the amounts included for the reduction of the debt, i.e., to incur a further deficit. "Without expressing a definite opinion as to the figure included in the sketch budget for 1932 for the redemption of the floating debt, which figure, amounting to 870,000,000 relchsmarks as compared with the total debt of the Reich, seems very considerable, the subcommittee could not but feel, having regard to the alarming increase of the total public debt of Germany shown in the figures given above, that it is vital for the German Government to pursue the firmest possible policy of debt reduction in order that the burden of debt may not become unsupportable, and they consider that the German Government would not be justified unless it included in the budget a substantial provision for this purpose." Annex five is a report cf the sub-committee on the Reichsbank. "After examining the figures furnished by the German delegation," It says, "the sub-committee reached the following conclusion: "The results obtained by the Reichsbank may be classified under three heads, according to the periods to which they relate: The years 1925 to 1929, the years 1930 and 1931, and the year 1932. "The figures for 1925 . to 1929 show that during this period the annual average excess of operating receipts over payments amounted to 833,000,000 marks, thus enabling the Reichsbank to meet the contributions of 660,000,000 for which it is liable. "It might be argued that from the standpoint of the Reichsbank these years were not entirely normal, since writings-off and replacements were not carried beyond a certain limit, precisely with a view to enabling the Reichsbank to make its contribution. I3ut it should be noted in this connection that earnings were well in excess of the contribution, and further that the working coefficient, thanks to which the earnings were obtained, varied during the years in question between 81 and 85%, a figure comparable with that- of the principal railway systems during the same period. "In 1930, under the influence of the world economic crisis, receipts dropped by 13%. The operating surplus fell to 480,000,000, and to meet its reparation and other annual charges the company was obliged to draw upon the balance brought forward from the previous account. In that year the working coefficient rose to 89.5% and a similar increase is to be noted in the coefficients of other countries. "In 1931 the economic crisis became still more acute. The decline of receipts in two years amounts to 1,500,000,000, or 28%. To meet its charges the company is compelled to have recourse to its reserves. It must be pointed out that these charges include the reparation payments which, in conformity with the Hoover plan and the London protocol, are, in fact, returned to the company in the form of loans repayable in ten years as from 1933. "It appears that in 1932, after allowing for the decline of receipts and, payments which is likely to arise from the general crisis and the measures recently enacted in Germany for the lowering of tariffs and expenditure, it will not be possible to balance the company's budget. "The figures cited, together with the facts ascertained and the comparisons made by the experts, would appear to us to suggest that once Germany and the world at large have recovered their balance and returned to something like the economic conditions which we are accustomed to regard as normal, the Reichsbank, fundamentally a sound undertaking, will be able in future years, if managed on a commercial basis, to yield a net operating surplus comparable with that earned by other big foreign railway systems." Committee of Experts at Basle Was Balked on German Wealth—Subcommittee Reports Inability to Give Total of Assets Abroad—Much Property Hidden8,100,000,000 Reichsmarks in Credits Is Rough Computation for Last Month—Interest for 1932 on Assets Found Is Expected to Exceed 300,000,000 Marks. A Basle cablegram Dec. 24 to the New York "Times" stated that the most important annex to the report of the Advisory Committee of the Bank for International Settlements, that of the subcommittee on German assets abroad, reveals that no accurate estimate could be made of Germany's foreign investments. The cablegram continued: The subcommittee estimated that short-term credits, long-term investments and bank claims abroad amounted to 8,400,000,000 reichsmarks in July and 8,100,000,000 in November. The text of the advisory experts' report is accompanied by five annexes composed of statistical reports of the various subcommittees. The first annex reproduces the German Government's letter to the Bank for International Settlements asking the summoning of the special advisory committee provided for in the Young Plan. The second annex contains the report of the subcommittee on statistics regarding the interest and amortization of the German foreign indebtedness, the third the report on German assets abroad, the fourth the report of the subcommittee on the German budget, and the fifth the German railway's subcommittee report. The object of the foreign indebtedness committee was to establish Germany's net income, but because of insufficient information on German assets abroad it was obliged to give merely a rough estimate of what the 26 FINANCIAL CHRONICLE [VOL. 134. If the amount of 5,000,000,000 is taken for long-term assets at an Income from investments might be. The concealed investments were closely connected with the flight of capital from Germany since the average rate of 3 to 4%, the yield from such investments would amount Hoover moratorium was announced and this flight of German capital, to from 150,000,000 to 200,000,000 reichsmarks. For commodity credits no specific income from interest can be estitogether with withdrawals of credits by foreign investors, was declared by the experts to be one of the principal causes of Germany's critical mated; the interest on capital of this kind being generally included in the price of the commodities and so in the balance cf trade. The Russian condition. The fact that the proceeds from Germany's favorable trade balance credits, however, are an exception to the rule and the subcommittee are mostly contained in these hidden assets, which are chiefly the property accordingly include an item of about 50,000,000 reichsmarks. For the foreign claims of the Reichsbank and private banks 30,000,000 of private individuals and not of the German State, makes it impossible for Germany to use this favorable balance in extricating herself from has been taken as a reasonable figure for interest. These items together give interest receipts totaling 230,000,000 to 280,000,000. Indebtedness. For the calculation of the interest on other German capital as far as The "Times" gives as follows the text of Annex 3: this is not included under the above headings the subcommittee, as already explained, has no computation of the capital involved on which Text of Annex 3. to base its estimates. Nor is information available as to the rate of Annex 3, the report of the subcommittee on German assets abroad. Interest on this capital or to what extent that interest finds its way reads: to Germany. Whereas the first report of the subcommittee related to the interest The conclusion finally reached is that for 1932 German interest receipts and amortization payments on the German debt, the present report deals on foreign investments might be put in round figures between 300,000,000 with the foreign investments in Germany and the income which Germany and 400,000,000. derives from them. For these purposes no direct statistics exist and, Obviously, the subcommittee is not expected to express an opinion as owing to the absolute impossibility of determining exactly the volume oi to future economic conditions or to say what the rates of interest are German assets abroad, the subcommittee feels itself obliged to formulate likely to be In 1932. The conclusions which have been drawn take necessary reservations in regard to the accuracy of the estimates contained account of present conditions only and should be accepted with reserve In the present report. in view of the prevailing economic instability. The subcommittee, nevertheless, attempted in the first instance to form a direct estimate of the volume of these assets, but encountered Insurmountable obstacles in an almost complete absence of data on Bade Report which to work. It was compelled to recognize that certain elements were Chancellor Bruening of Germany Calls on Reparations Satisfactory Although Falling entirely beyond the bounds of its investigations and that, generally speaking, the figures ore which its discussions were based allow a wide Short of Solution of Problem—Finance Minister margin of error. Dietrich Says Young Plan Has Been Outdistanced. some reach by result to endeavored therefore, The subcommittee, taking as a starting point the increase of 6,000,000,000 reichsmarks (a Bruening of Germany stated on Dec. 24 that Chancellor reichsmark is worth about 24 cents) in the volume of Germany's interreport could be called satisfactory, reparations Basle the and August furnished in 1931. national indebtedness over the estimates have tried to determine to what extent a similar figure must appear in considering what had been expected of the committee, the volume of Germany's foreign assets. although it fell short of being a large-minded solution of the The new figure of the German debt need not necessarily imply a Associated Press cablegrams from financial problem. corresponding increase in German assets abroad. Berlin, from which we quote, continued: Conjectures on Difference. In declaring that the report was less clear than the Wiggin-Layton There are, indeed, certain conjectures that offer a theoretical present committee was the juridical instrument of the difference between the balance of indebtedness and the result of various report because the Basle said it had been hard for the German repbalances of payments in previous years. But it is evidently impossible Young Plan, the Chancellor their task within those lines so that the true to state in figures even approximately the practical consequences of resentatives to carry out to light. They had succeeded in this, fully brought situation should be these conjectures. point. Previous estimates of Germany's net claim on foreign countries have he asserted, and that was the vital Dr. Bruening said that the French thesis that the present crisis was been computed from the base figure of 2,900,000,000 as at the end of her industrial equipment Germany 1923. Assuming that in that year Germany's foreign debt in fact was merely transient, and that because of was contradicted by the statement greater, this alone would provide an explanation for a portion of the would soon be in a better position, of the advisory committee that improvement could be effected only by present difference. Assuming that the statistics for the balance of payments for 1924 to the adoption of the committee's recommendations. The Chancellor said he thought the next step would be a new agree1930 contain only errors insignificant in amount, but tending in the same negotiations, he said, the limits direction, a further portion of difference could also be explained, this ment regarding frozen credits. In those operative and the bankers were way. Obviously minor errors continuing over a period of years would imposed on the Basle committee were not able to deal with the situation as a single problem. amount in the aggregate to a substantial total. Such statistics always are subject to error; for instance, the coefficients Sees Young Plan Out of Date. of adjustment applied by the Statistiche Reishsamt to the German Finance Minister, said that the Young Plan Dietrich, Hermann Dr. foreign trade figures for the years 1924 to 1927 may not have been quite "has been outdistanced by events." correct. "It rested on premises which failed to materialize," he averred. Further, the subsequent emigration of Germans who bad already "These premises had the props taken from under them by the fact that Invested their capital abroad during the years under consideration ma; the States with which Germany has trade relations and to which the have created a difference between capital exports as deduced from the signatories of the plan chiefly belonged acted in their trade policies balance of payments and the present total of foreign property. contrary to the way they should have acted according to the meaning In so far as the difference of 6.000,000,000 reichsmarks cannot be of the plan." explained by the above mentioned items, the conclusion seems, of course, Dr. Dietrich explained that instead of enabling Germany to make that Germany's foreign property must be greater than was assumed in payments through exporting goods the nations had barred such goods August 1931. The subcommittee was not, however, in a position to by raising tariffs. estimate the total amount which should be included under this head. "A situation has arisen which was unforeseen by the Young Plan and Sought. Total of Property hence measures outside the possibilities of the plan become necessary," re-establish the The subcommittee nevertheless attempted to obtain at least an idea he added. "If measures to restore confidence and orderly international exchange of goods are not adopted the consequences of the magnitude of some part of Germany's foreign property. of Europe nations As far as Germany's long-term investments are concerned, a total for will be catastrophic not only for all the commercial this item of 5,000,000,000 reichsmarks has been tentatively suggested. but also for the countries across the seas." The Basle report created a favorable impression to-day among Berlin This total is the result of calculations and inquiries by German instituin stocks and shares tions and may be incomplete. No means exist for assessing the full bankers, conducting an over-the-counter business cheerful, although while the Boerse was closed. The tendency was amount of foreign bonds in the hands of German nationals. Such bonds and shares as were included in the German total have been trading was quiet. taken at their nominal value. For real estate participation, 4:c., the value of 1929 has been taken owing to the lack of later information. Foreseen by Berlin onI"Dollar The short-term claims of Germany are even more difficult to assess. Continued Payment Bonds." The lengthy terms which Germany extended in respect to her exports resulted in building up considerable claims abroad. On the basis of an the New York "Times" reported 24, Dec. Berlin, From of terms credit average and 800,000,000 average monthly exportation of three months, these credits might be estimated to amount to about the following: The Berlin banks consider that, at least for a considerable time to 2,400,000,000. The subcommittee would nevertheless point out that, in view of the come, interest payment on the external dollar bonds of Germany is lengths the increase to lately led assured. The claim for priority to reparations, which would theoretically fact that German exporters have been of their credits, an average of three months might possibly be too low. make payment of interest on the foreign bonds impossible, cannot take For instance, Russian credits wills State guarantee extend up to twelve practical shape unless reparations payments are resumed. This would at any rate be six months off. to eighteen months on the average. Even then, it was pointed out in banking circles this week, the priority Drop From July Figures. of reparations could be enforced only through compelling the Reichsbank German banks and Reichsbank At the end of July foreign claims of the to refuse to sell exchange to bankers desiring to remit against foreign were computed at 1,300,000,000 relchsmarks. By November this total bond indebtedness. But that would be a violation of the Allies' own had fallen to 1,000,000,000. A deduction,however, may be made from these totals because part of the foreign claims of German banks are bank law 011924. already included in the estimate for commodity credits. It has been stated that this deduction should amount to 300,000,000 reichsmarks, thus Flood of American Loan Offers in 1925-6 Revealed by reducing the figures to 1,000,000,000 and 700,000,000 respectively. Former Prussian Minister of Finance. For the above three items, therefore, the aggregate nominal amounts of 8,400,000,000 in July and 8,100,000,000 in November were obtained; From Munich, Dec. 18, a cablegramIto the New York but the subcommittee was convinced that due to the important capital stated: emigration which has taken place recently these totals must be consider- "Times" Dr. Hoepker-Aschoff, former Prussian Minister of Finance, said in-an ably increased. In the absence of evidence of any kind it is unable to address to-day that when one looked back it must now be admitted that give an estimate. foreign loan policy In the years after the inflation had been Accordingly, it is not possible to provide an estimate for the total Germany's justly criticized. property owned by Germany abroad. But he pointed out that then it had been regarded as the best way to 1932 Interest Estimates. recovery and, moreover, the German authorities had been virtually with loan offers by foreigners. flooded The subcommittee also was asked to inquire into the amount of interest "puring the rears 1925 and 1926," he added, "not a week went by which Germany might expect to receive during the year 1932. Clearly this second problem is closely connected with the first and the subcom- that a representative of a group of American banks came to see me in the Ministry for that purpose." mittee found it impossible to provide a satisfactory solution. er" JAN. 2 1932.] FINANCIAL CHRONICLE Prussian Expenditures Cut By $60,000,000—State Abolishes Operas, Research Institutes and Art Schools to Meet Big Deficit. Under date of Dec. 22 a Berlin cablegram to the New York "Times" said: A drastic concentration and simplification of the Prussian Administrae tion was decreed by the Prussian Government to-day to make up in part for a deficit for mom than $100,000,000 in the State's 1932 budget. Compelled to refrain from increases in taxation, Prussia has had tb cut expenditures in an endeavor to balance her budget, which has been set at about 3,000,000,000 marks (about $714,000,000). The number of lower courts and administrative districts is reduced by 6 to 10%, and the Prussian Academy of Gymnastics is abolished, along with the State operas in Wiesbaden and Kassel, of pre-war fame, and the academies of fine arts in Breslau, Kassel and Koenigsberg. The expenditures of all universities are to be reduced sharply and many professors, teachers and other State officials are to be dismissed or pensioned. Part of the State's farm land will be sold to settlers. Despite these economies there remains in the budget a deficit of about $40,000,000, and thus far nobody seems to know how it is to be covered. The Minister of Finance has consequently been authorized to take new credits to a maximum of $143,000,000, to be amortized through annual budgetary payments of $18,000,000. Manchester "Guardian" on Basle Report on German Reparations. Commenting on Dec. 24, on the report of the Young Plan committee at Basle last night, the Manchester "Guardian" according to an Associated Press cablegram from Manchester, England, said: 27 When the Committee began its deliberations, Germany's economic position was already well known, having been set forth in the Wiggin report. Interest in banking circles centred chiefly upon the possibility that the Committee might make some concrete recommendation as to what, in its opinion, Germany could pay in reparations. Recent reports from Basle, however, have left Wall Street with little expectation oi such an expression from the Committee. Basle Report on Reparations Favorably Regarded in Austria. From Vienna, Associated Press advices, Dec. 24, said: A favorable reaction to the report of the Young Plan committee was expressed here to-day and it was regarded as at least another step in the right direction. Austria, it was emphasized, is not directly concerned, but she is deeply interested, nevertheless, since little hope is entertained for improvement here before the German problem is adjusted. Basle Debt Report Supported by Italy—Rome Holds Recommendations Should be Followed to Avert Economic Disaster. A wireless message from Rome, Italy, Dec. 26, is taken as follows from the New York "Times": Italy received the report of the Basle committee of inquiry on Germany's ability to pay reparations very much as a matter of course. The Italian attitude is that it is impossible to discuss only German reparations or exclusively European debts or Europe's debts to the United States. Italian authorities hold that all these matters are intertwined and that it. is not even possible to distinguish between the victors and the vanquished in the world's present economic problems. For this reason, they assert, the Young Plan cannot stand up despite its individual virtues. At the same time officials here believe that the Basle committee has pointed a way to avert economic disaster and that it is the duty of all the governments affected to follow the recommendations. The strictures placed upon the Hoover debt postponement by the United States Congress are looked upon here as pre-election concessions, but the moratorium itself is praised as a great and decisive action. It is asserted in connection with it that Premier Mussolini advocated a similar step as long ago as 1922. "The question has been, not whether Germany can pay but how definitely the Committee would recommend a complete moratorium or, as British public opinion would prefer, cancellation of reparations and war debts. "In the last week it worked under the shadow of the American Congress and the uncompromising declarations of the French Government. Its actual recommendations will probably disappoint those who had looked, perhaps unreasonably, for a bold lead in detail. "But in its setting out of incontestable facts and in its insistence that Favorable Comment in League of Nations Respecting an adjustment of all reparations and war debts to the troubled situation Basle Report on German Reparations. of the world 'is the only lasting step capable of restoring confidence', it Under date of Dec. 24, Associated Press accounts from gives the key to the conference of governments. "The report will strengthen the hands of those governments that are Geneva said: The report of the Young Plan committee as Basle aroused rather determined the conference shall lead to more than a temporary measure of relief, among which we may hope the British Government will be favorable comment in League of Nations quarters to-day and the opinion was expressed that it furniShed a sound basis for a reparations conference numbered." of the governments. experts did their work well, commentators said, but after all only Germany Hoped Basle Reparation Report Would theThe governments can work out remedies when political questions dominate Recommend Canceling of All Reparations. the international situation so completely. Observers here were glad to note the committee's conclusion that GerThe following Berlin cablegram, Dec. 23, is from the many's future may be viewed with hope if the dangers of the present New York "Times": financial and economic depression can be banished. With a general outline of the report of the Basle committee on hand, The committee's belief that debts owing to the United States, as well official quarters here were inclined to-night to regard it as satisfactory as reparations payments, must be readjusted is a faithful echo, it was In that it characterizes reparations as one of the chief causes of the world pointed out, of almost universal expert and diplomatic opinion in Europe. depression. Having been in constant touch with the German delegations at Basle, the German Government already was considerably disappointed in its expectations, and it is believed that it was due to Conference on War Debts and Reparations Agreed a hint from Berlin that Dr. Carl Melchior did not insist at Basle on a Upon by Great Britain and France—To Be Held strong, outspoken majority report rather than accept a relatively weak Jan. 18 at Lausanne. compromise. The issuance of the report at Basle, Switzerland, on the The German public probably will be disappointed by the conclusions of the Basle committee,as hopes here had run high and a recommendation inability of Germany to meet reparations payments has for the cancellation of reparations had been widely anticipated as the been followed by a movement on the part of Great Britain most probable result of the committee's deliberations. The annual report on German foreign trade, which was published and France to bring about a conference on war debts and to-night by the Ministry of Economics, in line with the Basle report reparations. The first repotts with regard thereto, which predicts for 1932 a downward trend of Germany's export surplus, which had kept on growing until last October. Germany's exports will decline came from London Dec. 25,indicated that those two governmaterially as a result of the trade barriers erected everywhere, it is ments were addressing notices to the nations interested to asserted, and it will be impossible to make up for the reduced volume of meet at the Hague on Jan. 18. It has been indicated since exports through a curtailment of imports because German imports that the conference will be held at Lausanne on that date. already have reached a practical minimum. The newspaper "Germania", organ of Chancellor Bruening's party, The initiative in calling the conference was taken by Great said "something must be done or there will be further catastrophes." Britain on Dec.30, according to a London cablegram on that The Nationalist "Der Tag" averred that "Shylock (meaning France) date to the New York "Times," which said: will heal the wounds of the bleeding to enable them to bleed further.". No formal invitations were issued, but instead the curiously indirect The "Communist Rote Fahne" saw the report as "a new defeat for the bourgeoisie." French imperialism, the paper said, had won procedure was adopted of giving the Government of Switzerland the responsibility for issuing them. Instructions were given to the Britsih "another impressive victory." Ambassadors and Ministers abroad "to suggest to the Governments of ten foreign countries that they should ask Switzerland to allow the Basle Report on Germany Meets Wall Street's Ideas— conference to meet at Lausanne on Jan. 18." The ten countries mentioned are the creditors of Germany—France, Bankers See Reparations Issue Returned to Italy, Belgium, Portugal, Greece, Poland, Japan, Czechoslovakia, Politicians for Final Settlement. Rumania and Jugoslavia. . . . France Favors Later Meeting. In the New York "Times" of Dec. 24, it was stated that Although the French Government had asked for Jan. 20 as a more conthe report of the Advisory Committee of the Bank for venient date,the British Government to-day stuck to its original intention International Settlements, declaring that Germany will be that the conference should begin on Jan. 18, thus allowing two full weeks unable to resume payment of conditional reparations before the beginning of the disarmament conference at Geneva. If France still objects because of the necessity of keeping her Ministers in annuities under the Young Plan after the expiration of the Paris for the first week's sessions of the Chamber of Deputies it will be Hoover moratorium and urging the governments concerned necessary to make a formal suggestion in her note to the Swiss Governto meet the situation by prompt and concerted action, con- ment. formed closely to the expectations of Wall Street. "Times" went on to say: The The same paper, in a Washington dispatch Dec.30 stated: That the European Governments were aware that the United States did not propose to attend a reparations conference before Great Britain In effect, bankers concluded, the experts have again returned the issued invitations to such a conference was evident here, but there was problem to the politicians, who must settle it ultimately. an admission to-day of any official knowledge that this was what The recommendation for immediate action by the Governments agrees, prompted Great Britain to withhold an invitation to this country to it was remarked, with the conclusions of the Wiggin Committee, which participate in the Lausanne conference scheduled for Jan. 18. examined Germany's economic position last August. In general, Wall The following Paris advices, Dec. 31, are from the "Wall Street has felt that the Advisory Committee, unless it was to go somewhat beyond its scope as outlined in the Young Plan and make specific recom- Street Journal": French Agree on Lausanne. mendations for altering the scale of reparations payments, could do little more than add the weight of its opinion to the already strong evidence The Council of Ministers has approved selection of Lausanne as the of Germany's inability Do continue reparations at the old scale. site of the reparations and debts conference. 28 FINANCIAL CHRONICLE [VoL. 134. It was also stated in the "Wall Street Journal" of Dec. 31 French diplomacy is unable to feel any real confidence in the prospects for obtaining trustworthy collaboration with Germany. Britain that: and France, they are proclaiming, must work together, and by a common The German Government has notified Great Britain of agreement to effort they can bring Europe out of the difficulties. The whole French the selection of Lausanne, Switzerland, as the meeting place for the press in chorus to-day announces this discovery. debts and reparations conference. As to the proposed conference, a cablegram Dec. 25 to Under-Secretary of Treasury Mills Intimates That the the New York "Times" said: United States Will Not Participate in European The joint issuance by Great Britain and France of an invitation to a reparations conference at The Hague came with unexpected swiftness Conference on War Debts. to-day and marked the culmination of months of effort on the part of As to the question of participation by the United States the British Government to hasten the reconsideration of Europe's debt tangle. in the proposed conference abroad on reparations and war "For God's sake,let's meet at once," was Prime Minister MacDonald's plea yesterday on the completion of the Basle report. By to-day events debts, we quote the following Associated Press account from had moved so fast that the Prime Minister was able to approve the draft Washington Dee. 29: Invitation and telephone last-minute instructions from Lossiemouth, Europe's insistent hinting that an American delegate should sit in the where he is spending the Christmas holiday. forth-coming reparations conference received only this answer to-day In official quarters here: Limited Conference Likely. "There will be no trip to Europe this winter." They were the words of Ogden L. Mills, Under-Secretary of the Although the text of the invitation was not published here,it is assumed it is an invitation to a reparations conference and not to a general eco- Treasury, President Hoover's last caller yesterday and his first to-day. nomic parley. Premier MacDonald would have liked to go a good deal Mr. Mills's short reply to the questions of newspaper men summed up further and discuss the whole of Europe's "crazy economics," which he the expectations of informed circles in the Capitol. It put tersely an denounced in a Guildhall speech in November, including such problems apparent determination, both by the Administration and by Congress, as gold, currencies and tariffs. For the present, however, the British to let Europe work out its own problems for the present and turn attenand French have agreed to discuss only the urgent problems of reparations tion to pressing matters at home. and war debts in the light of the Basle committee's findings. When reporters asked Mr. Mills whether the European powers had The British do not for a moment, however, share the official attitude asked the United States to sit in, he said: Of the Hoover Administration that war debts and reparations are separate. "No, and T don't see why they should." The invitation issued to the United States is proof, in British opinion, The Treasury Official, who was the President's expert adviser throughthat the two are linked. out the moratorium negotiations, would not elaborate. In view of the debate in Congress there is little hope here that the From the New York "Times" we quote the following United States will send any one but an observer or will take a constructive part in the discussions. Yet the door is left open, and if a strong from Washington Dec. 29: delegation is sent from Washington it will be taken as an encouraging If the forthcoming European conference to act on the report of the sign that some help still will be forthcoming toward the economic Young Plan Advisory Committee is concerned solely with German repararecovery of Europe. tions, the United States will not participate and probably will not even send an unofficial observer to the Conference. This statement was On Dec. 27 it was reported that British Prime Minister made to-day on high Administration authority. MacDonald had invited Premier Laval of France to confer Whether the United States would participate, should the Conference with him prior to the proposed conference. Under date of br broadened to deal with general economic questions in addition to reparations, Dec. 28, Associated Press accounts from London referring ference isit was added, cannot be determined until the scope of the conactually known. to this, said: Until the situation has crystallized in Europe, President Hoover canThe prospect of a meeting between Prime Minister MacDonald and not determine the attitude of this Government toward the Conference. Premier Laval for a talk about war debts, reparations and other political He conferred again to-day with Secretary Stimson and Ogden Mills, and economic ills of the troubled world still appeared good to -night, Under-Secretary of the Treasury, but it was said that only general although no formal invitation has been issued. Official quarters in consideration was being given to the problem. London said such a meeting might take Place. Secretary Stimson received in joint conference at the State Department Its main objective would be to harmonize the French and British at noon to -day Ambassador von Prittwitz of Germany and Pierre Henry viewpoints before the start of the reparations conference. de la Blanchetai, the French Charge d'Affaires, but none of the particiMr. MacDonald, at Lossiemouth, Scotland, spent more time to-day pants would comment on their conversation afterward. The German than usual on the telephone talking to his London office, and also had a Ambassador, it was said, went to the Department on a routine matter, long conversation with Sir John Simon, the Foreign Secretary. but after he had entered the office of the Secretary of State, the French It was intimated in responsible quzrters that there might be modifica- Charge arrived under circumstances which indicated he had been sent tion of the British demand, voiced by Stanley Baldwin in the House of for. It was intimated by officials that the Conference was not of great Commons on Nov. 13, that Germany's political debts must not be allowed Importance. It lasted about 15 minutes. to jeopardize commercial debts. On the previous day (Dec. 28) a Washington dispatch to The British Cabinet committee dealing with reparations will not meet In London until Jan. 6. the "Times" said in part: President Hoover conferred at length late this afteznoon with SecreFrom Lossiemouth (Scotland) Dec. 29 Associated Press tary of State Stimson and Ogden L. Mills, Under-Secretary of the cablegrams said: Treasury, on the inter-governmental debt problem. Indications were Prime Minister MacDonald remained ready tonight to meet Premier given in certain official circles that the Administration would not be Laval of France in a personal conference previous to the forthcoming deterred from deciding upon American participation in The Hague Conference on reparations next month by the adverse attitude of Conreparations parley if the latter was of the same mind. There was no development regarding the conference today except gress, should it believe that by participating American interests would that British opinion appeared to be shifting toward Lausanne, Switzer- best be safeguarded. The White House Conference began shortly before five o'clock and land, as the place and Jan. 25 as the date. an hour and 15 minutes. Secretary Stimson went to the White In its issue of Dec. 30, the New York "Times" reported lasted House from Woodley, his home, where he had spent the day working on the following from Paris Dec. 29: State Department business. At the conclusion of the Conference the White House declined to Inter-governmental negotiations to-day gave rise to reports in Paris that the impending conference on war debts and reaparations would be say anything about it and Secretary Stimson was equally uncommunicative. Mr. Mills would say nothing definite, although he gave the postponed until the end of January and would be held at Lausanne Impression that the reparations situation had not been discussed. nstead of The Hague. The Foreign Office would give no official confirmation, but two No Invitation to Europe. strong factors, it was learned, are operating for this decision. First, He declared, in response to a question, that no invitation had been the possibility of obtaining American official participation if reparations could be associated with disarmament and with the conference received for the United States to attend the European meeting. It is believed, however, that Europe will not extend such an invitaon debts and short-term credits; second, the hope which is voiced throughout the French press that the entente cordiale between Britain tion at least before Prime Minister MacDonald of Great B1 itain and Premier Laval of France have had their informal meeting to discuss and France can be revived in preparation for a conference of that kind. Holding the reparations conference at Lausanne late in January next month's Conference. would give time for the Berlin short-term credit conference to finish its report, which would be included with the Basle experts' report as a bates for the Lausanne conference. The presence of an American dele Meeting in Berlin of International Committee of gate would permit the whole problem of debts, reparations and credits Bankers Considering Funding of Germany's to be dealt with simultaneously, and holding the conference at Lausanne Foreign Short Term Credits. would enable the Foreign Ministers and Premiers to push forward the work in this conference while also attending the Geneva arms meeting Without arriving at a conclusive agreement, adjournment only an hour away by train. Assurances from Washington that the United States Government until Dec. 28 was taken on Dec. 22 by the International would not allow the Congressional attitude on the Hoover moratorium Committee of Bankers which has been holding conferences to influence the position it might take if the reparations conference funding of Germany's should be broadened to include subjects directly interesting the United in Berlin to consider plans for the States have given new hope to European negotiators that a permanent foreign short term credits. Indicating that little has been settlement of debts and reparations can after all be reached at this accomplished with the resumption of the conferences this conference. week, a Berlin cablegram Dec. 30 to the New York "Times" Complete Revision Considered. Instead of a brief meeting at The Hague to adopt an extension of said: The discussions over Germany's frozen credits are progressing only the Hoover moratorium for it year or two, the negotiators again have been turned toward the possibility of a complete and final revision of slowly, it was stated to-day, although the situation has become suffireparations and debts to fit the world situation, such as the Basle ex- ciently clarified to warrant the belief that a definite accord will be reached before Jan. 12. perts recommended. The amount of short-term credits now being discussed is said to total Postponement of the date of the conference would permit President Hoover to inform himself throughly and might induce him to consider slightly more than $1,500,000,000, this representing the volume of the direct participation. It would also give a chance for the French diplo- debts which are ticketed as comprising the short-term category. Delay mats to press the claims which they, are extending to the British for a in reaching an accord on the question of interest rates is suspected to be renewal of the entente cordiale, without which they are declaring Europe due to the attitude of the Swiss and Dutch bankers, which is reported opposed to that of the American and British creditors. faces ruin. JAN. 2 1932.] FINANCIAL CHRONICLE References to the negotiations on the extension of the "standstill" agreement on German short-term credits appeared in these'columns Dec. 12, page 2891 and Dec. 19, page 4082. With the recess taken by the Committee, Associated Press cablegrams from Berlin Dec. 22 said: Terms offered by Germany's creditors for thawing out her frozen credits have been found unacceptable by the Germans, it was learned unofficially to-day. While nothing was officially announced, it was learned from trustworthy sources that the representatives of Germany's creditors had settled on a common program as a basis of discussion and submitted it to the German delegates. After a detailed examination the Germans declared that the creditors' terms were unacceptable, in view of the Reich's economic plight. They objected chiefly to the amortization plan, which they considered exorbitant in view of Germany's difficulties in obtaining foreign exchange. The German contention,it was understood, was that if the Reich since July 13 1931 was able to repay 1,000,000,000 marks, this was possible only because the emergency decrees forced her citizens to yield up their foreign exchange holdings. The Germans declared it was impossible to continue at this pace and asked a longer time for amortization. The German delegates also objected to the high interest rate which their creditors were reported to have demanded. The session was closed in the hope that some method might be found during the holidays for establishing a basis of agreement between the divergent viewpoints. It was also hoped that a report from Basle would be made in the meantime. The American members signified their intention of remaining here during Christmas week, while the other delegations hurried to their native lapds to celebrate. Berlin advices Dec. 19 to the New York "Times" said: In the first communique handed out by the Committee, which has been meeting for two weeks behind closed doors, it is stated that the negotiations have progressed satisfactorily in a spirit of harmony. No reference is made to the debt consolidation and mobilization scheme, which, as was learned several days ago, has been chiefly under consideration. It has been generally expected that the conference will last until January, since the cataloguing of the various categories of debts which must precede any kind of consolidation is an extremely complex task. 29 Moreover, it is understood that the question of which credits shall be transferred to the projected trust company that is to issue bonds in exchange has not yet been definitely settled. There is an inclination among the foreign members of the Committee to confine this consolidation to the short-term credits given by foreign banks to German banks, while the German delegates would like to have at least part of those included which were given by foreign banks directly to industries and other commercial enterprises. We likewise quote from the "Times" the following from Berlin Dec. 16: The work is extremely complex, as about 120,000 German debtors are involved, with a total indebtedness of more than $1,000,000,000. All the credits are to be examined as to their liquidity, because it is realized it will be harder to mobilize pure financial credits than those based on business transactions. About Christmas the negotiations will be interrupted •for ten days. From Berlin Dee. 22 a cablegram to the "Times" said in part: The conference of the world bankers over the question of thawing out of Germany's frozen short-term credits adjourned for the holidays tonight without issuing a communique. Beyond confiding that "progress was being made" none of the American or British participants in the negotiations, which have been going on for the past two weeks, would say whether progress was being impeded by the reluctance of the Germans to consent to a more llberal schedule of liquidation than the creditor banks were proposing, while on the other hand questions involving the "eligibility" of certain credits, the future security of foreign claims and the interest rates also are proving to be knotty problems, according to information current in German financial circles. The German delegates are insisting on a greater measure of future protection for German credit than that provided for in the present stabilization agreement in order to protect the Reichsbank's reserves in foreign currencies. The German banks are prepared, it was stated, to extend to foreign creditors increased accommodations for mobilizing rediscounts, while the proposal for the creation of a trust fund for liquidating financial credits over a period of ten years also has the approval of the German delegates. The American delegation, headed by Albert H. Wiggin, will spend the Christmas holidays in Berlin. Indications of Business Activity THE STATE OF TRADE—COMMERCIAL EPITOME. tion. To not a few it looks as though the prospects for a Thursday Night, Dec. 31 1931. better export trade in domestic and as well as Canadian Trade has remained in pretty much the same condition wheat were brightening though shipments from Argentine as heretofore except that naturally there is a drop in the and Australia will have to be reckoned with. The price of holiday trade. The heavy industries are still quiet and signs American wheat low as it is however, is relatively higher of a lowering of prices were to be seen in the steel trade. than that of competitors and world's supplies are still very The demand in retail lines has continued to be for the cheaper large. Yet Europe must be fed and this country may yet articles. The buying power of the people has been un- have a chance to export wheat, rye and barley on amuck avoidably lowered by the bad times, unemployment, lack of larger scale than has been the ease for many months past. confidence, the pronounced disposition to economy and not Corn has advanced like wheat 1 to 1%e. and the farmer of improbably a certain amount of hoarding though this is the central west continues in many cases to hold back his something which is apt to be exaggerated. The wholesale corn rather than accept such low prices as now rule. And and jobbing trades have kept as heretofore within very there may be a considerable increase in farm livestock connarrow limits. People are waiting to see. Some watch the sumption though the open winter thus far has not been stock and bond markets and there is no use attempting to without its inevitable effects. Rye has risen to 2o. 134 minimize the effects when they decline day after day. Of with signs of a better demand from the continent. Prolater it is cheering to the average man to notice that they visions have declined and lard is 17 to 28 points lower than have been inclined to advance and that the selling has been a week ago. in no small degree traceable to what is euphemistically Cotton has stood its ground in unmistakable fashion. termed "tax selling" rather than to ordinary liquidation. The exports are increasing. American cotton is growing in The action of the stock market on Thursday was encouraging favor with the Far East especially China and Japan. It as despite the tax selling incubus prices advanced not ex- seems that some European spinners are cancelling their cepting some of the preferred issues and bonds also got into orders for East Indian cotton and buying American which an upward stride. The drygoods trade has been for the is relatively cheaper. Here in New York the Far Eastern most part quiet at retail as well as wholesale. Cotton goods and American trade buying is steady and at times very in the big Worth Street district have been quiet and steady. noticeable. The South is still holding back much of its Some not uncheerful reports have come from some of the cotton. Plantation stocks make that plain not to mention Carolina mills which are said, in some cases, to have orders the comparative absence of southern selling here and the on hand sufficient to keep them busy for 10 or 15 weeks. rarity of hedges. Sugar futures have advanced 6 points Others are considering the desirability of curtailing produc- with optimistic talk as to the probable results of the Paris tion for a time though there seems to be less said about it conference which shortly will be reassembled. Also spot ravrs just now than there was recently. The report of the Textile are higher and rise in refined sugar prices is expected next Merchants Association for the month of December is ex- week. Coffee has been less freely offered and prices have pected to be rather unfavorable, but there is a feeling too risen. Rubber is off 15 to 20 points with contradictory in some quarters that January will make a better showing, reports about restriction constantly being received from or at any rate, no worse and that the fore part of 1932 may Europe. Hides are somewhat higher though Boston's perhaps see the beginning of the change of the tide. The leather trade is still slow. Wool has been quiet and steady. chastened optimist, to be sure, is not making very positive Silk is 1 to 5 points higher. Silver has declined in a quieter some such convictions as that of market. Cocoa is up 17 points. predictions, but leans to Mr. Winston Churchill that somehow things will sooner or The dollar value of the holiday trade in leading depart-. later right themselves. If the powers that be at Washington meat stores in New York and vicinity was about 714% would interfere less with the workings of economic forces, below that of 1930 the Federal Reserve Bank reported. some think the turn for the better would come all the sooner. Assuming a similar decrease for the entire month of December In other words, they deprecate too much tinkering. the total dollar sales of the reporting stores for 1931 will be Wheat has advanced moderately with the technical slightly more than 8% less than in 1930 but the quantity position better, the world's shipments smaller and the pos- of goods was close to that of 1930. sibility that Russia has shot its bolt as an exporter of wheat On the 28th, both stocks and bonds declined. Stocks to western Europe for the season receiving more considera- for the time, stood up better than bonds, which fell sharply. 30 FINANCIAL CHRONICLE [Vol.. 134. "Tax selling" of stocks and Federal bonds figured con- where mills were concerned it has recently been the dullest spicuously in the trading. At least that was the general of the year. The number of mills that for the entire week week opinion. Not that the speculation was active. It was only , are to said to have gone far beyond the estimates of a goods gray on are mills idle majority ago and the that while else everything from Apart a little above 2,000,000 shares. however, short selling seemed rather more confident. Yet there was a large number of other weave mills and a very there was no severe break in the more popular stocks. considerable number of yarn plants idle. Charlotte, N. C., wired on the 28th: "The 21 combed Sharply outlined weakness of bonds was a sort of Achilles heel of the whole affair, in telling contrast with what occurred yarn plants of the Textiles, Inc., of Gastonia, N. C., will last week. Many issues sounded the lowest depths of the operate on full time, day shift only, for at least 10 to 15 year. United States Government issues were sold freely, weeks beginning Jan. 1. New orders justify the full-time in supposedly in not a few cases for tax return purposes. Nine schedule. These mills represent the first yarn merger the Tenn., Columbia, At recently." completed the South 1931. of levels lowest the struck of the Government issues Treasury 3s fell through 85, incredible as that sounds. Massachusetts Knitting Mills resumed night and day operaAmerican industrial bonds declined, but the drop was much tions last Monday after a short shut down for the Christmas less noticeable than in others. Foreign bonds were lower. holidays. At Utica, N. Y., there has been, it is stated, a steady Stocks on the 29th advanced in not a few cases 1 to 4 points in the textile and clothing until the year-end seasonal Bonds increase shares. 2,450,000 some to up with the transactions with the exception of United States issues, also rose. Tax decline. Employment at some textile plants increased 25% selling of stocks fell off noticeably, although the total trading this year up to November, when the usual annual decline. was 400,000 shares larger than on the previous day. The set in. Manchester, England, reported an indifferent trade technical position was better. Popular stocks naturally in textiles. Orders were being worked on without proporand the general tone was headed the rise. Wheat advanced 1%c.and cotton some 15 tionate replacement on mill books, A later report was unsettled. outlook the while easy, labor to yearly $4 from cut was dividend points. The Reading " Mail $2, but this attracted little attention; it was just so much was: "Manchester quiet. Sales below production. in poor condition water gone under the bridge. Some 15,000 Southern Pacific advices,in some eases, report textile trades and Czechoslovakia RR. workers accepted a reduction in wages of 10%, and 21 in Germany, Italy, Holland, Belgium English trade has labor unions have set Jan. 14 as the date on which they will and many working at not over 60%. for a time 75% attaining after backward gone apparently discuss to unemploypresidents railroad of committee a meet capacity. its producing of 15%. in of wages reduction ment relief and a proposed Of cotton cloths, the Cotton Textile Institute's figures On the 30th stocks despite considerable tax selling adstronger. that shipments were nearly 60,000,000 yards larger thus show position technical the with apparently vanced last year and yet there is said to be no profit in fractions than far small of some Some of the advances were moderate, larger than and some reached 2 to 6 points. The trading dropped to goods to-day with production 15,000,000 yards efficacy the in believe to seem not do some Yet shipments. S. Government U. cases most In shares. some 2,112,000 to of consumption restriction artificial term an dewhat they for of were issues were higher. Not a few transactions that artilivery after Jan. 1. In stocks the most conspicuous advances something below the consumption. They think industry were in American Telephone, Allied Chemical, Auburn, ficial measures of this sort have never helped an National Steel, Crucible Steel and Santa Fe. Stocks on for any considerable length of time. In December there was a fairly satisfactory trade in Thursday advanced some 1 to 3 points net in some cases says the "Hardware Age" adding that the quantity hardware 1,500,000 Some strong. and moreover bonds were distinctly volume of last shares were traded in which included a good deal of tax of holiday merchandise sold exceeded the a decline in caused depreciation the price offerings year although the took market the that is point selling. The has retarded lull post-holiday the The customary and sales. dollar % still was 33 with new found readiness. Money weather conLackawanna passed the dividend on the common, a dividend the current demand for staple goods while mild . which had been paid every year since 1880. In the preceding tinues to restrict activity in winter merchandise It was distinctly colder over the Christmas holidays with quarter it was 50 cents a share; in June and March $1 each so. On Dec. 27 it was 20 to 40 degrees and before March $1.50 quarterly. In December 205 divi- out being excessively had 18 to 32 degrees; Chicago, 32 Boston York. New of in universality the of illustration dends were passed an evil 50; Cleveland, 26 to 42; Detroit, to 28 46; Cincinnati, to bad times. Some preferred utility preferred stooks advanced to 46; Milwaukee, 36 to 44, and 44 City, Kansas 38; 28 to the of some and 2 to 1 shares utility common 2 to 8 points, 27th heavy easterly gales swept the On 20. to 8 Montreal, industrials more popular railroad stocks 2 to 3. Some of the Pacific and delayed shipping at Victoria, North the over were list active of the stocks all though more or point rose a Shanghai. Here on the 28th the temperatures under the check rein of tax sales. It looked as though other- B. C. from degrees, an average of 32, which was about to 38 27 were striking wise the net advances would have made a more 46 years. The maximum was some 25 defor average was the bonds in rise smart The %. / 31 was money story. Call point of last week, 62 degrees. Chicago high the below grees the took others Most issues. for a change led by Treasury on the 28th had however, 34 to 44; Cincinnati, 40 to 50; hint. Cleveland, 38 to 44; Denver, 32 to 58; Detroit, 36 to 46; The stock exchanges of this country and the commodity Kansas City, 28 to 46; Milwaukee, 36 to 40; Minneapolis, the 2 Jan. markets will be closed on Jan. 1. On Saturday, 30 to 34; Omaha, 28 to 40; Seattle, 32 to 42; Winnipeg, 28 be will banks the and Exchanges Produce and Stock, Curb exchanges. to 30; St. Louis,42 to 44; Boston,20 to 38. The Tallahatchie open and also many of the out of town stock on the 2nd. River a tributary of the Mississippi River flooded Glenora But the commodity exchanges will all be closed Mississippi and some 50,000 to 75,000 acres of land after reopening on Jan. 4. break in the levee on the 28th inst. a the Middle Chicago wired that optimism prevailed over all On the 29th the maximum temperatures here was 45 and taxes. higher of certainty the West, the chief cloud being to 42; of hoarded the minimum 27. Chicago and Milwaukee had 38 The holiday season turned loose large quantities to 48. 34 , 42; Philadelphia to 26 Boston, 38; to 32 Paul, St. the new money and the general feeling seemed to be that s in New York were 30 to 46, in 30th temperature the On selling Heavy upturn. year would see everything on the Chicago, 36 to 40; in Cleveland, 32 to 38; in Cincinnati, of stocks and bonds is interpreted as a movement by banks 34 to 44; in Kansas City, 52 to 66; in Omaha, 40 to 42; in and others to strengthen their cash balances against the Seattle, 34 to 44, and in Winnipeg, 28 to 34. On Thursday annual audit and also to lighten their income tax loads. the temperatures in New York were 24 to 38 degrees. The San Francisco reported that the volume of Christmas retail forecast was for snow or rain Thursday night or Friday trading is just about equal to that of last year. Cold weather with not much change in temperatures, but fresh to strong and copious rains added momentum to the seasonal upturn. Northeast winds. Utility entered largely into the selection of Christmas gifts this year. There was at the same time a general tendency Loading of Railroad Revenue Freight Still Small. to favor the low priced articles. of revenue freight for the week ended on Dec. 19 Loading Fall River, Mass wired that the Narragansett cotton mill 581,733 cars, the car service division of the American totaled on reorganizati the under resume to operations is preparing Railway Association announced to-day. This was a reducplan. Charlotte, N. C. reported that Southern mill men of 31,801 cars below the preceding week this year. had been conferring with northern mill agents with a ten- tion was a reduction of 132,132 cars below the correspondalso It 560,000 about out of carried production if tative plan which last year and 261,042 cars under the corresponding week ing cotton spindles and about 14,000 looms will be materially years ago. Details follow: reduced. As to the condition of trade Charlotte stated that week two 31 FINANCIAL CHRONICLE JAN. 2 1932.] Miscellaneous freight loading for the week of Doc. 19 totaled 192,801 cars, a decrease of 7,578 cars below the preceding week this year, 44.930 cars under the corresponding week in 1930 and 92,228 cars under the same week in 1929. Loading of merchandise less than carload lot freight totaled 191,742 cars, a decrease of 5,816 cars below the preceding week this year, 18,536 cars below the corresponding week last year and 36,794 cars under the same week two years ago. Grain and grain products loading for the week totaled 28,412 cars, 1,767 cars below the preceding week this year, 7,641 cars below the corresponding week last year, and 7,783 cars below the same week in 1929. In the Western districts alone, grain and grain products loading for the week ended on Dec. 19 totaled 18,015 cars, a decrease of 7,129 cars below the same week last year. Forest products loading totaled 18,085 cars, 999 cars below the preceding week this year, 13,233 cars under the same week in 1930 and 30,686 cars below the corresponding week two years ago. Ore loading amounted to 4,223 cars,an increase of219 cars above the week before, but 1,520 cars under the corresponding week last year and 4,571 cars under the same week in 1929. Coal loading amounted to 119,812 cars, 11,170 cars below the preceding week, 41,691 cars below the corresponding week last year and 79,857 cars under the same week in 1929. Coke loading amounted to 5,518 cars, 1,139 cars below the preceding week this year, 2,974 cars below the same week last year and 5,847 cars below the same week two years ago. Live stock loading amounted to 21.140 cars, a decrease of 3,551 cars below the preceding week this year, 1.607 cars below the same week last year and 3,276 cars below the same week two years ago. In the Western districts alone, loading of live stock for the week ended on Dec. 19 totaled 16,529 cars, a decrease of 993, compared with the same week last year. All districts reported reductions in the total loading of all commodities. compared not only with the same week In 1930 but also with the same week In 1929. Loading of revenue freight in 1931 compared with the two previous years follows: 1929. 1931. 1930. 3,490,542 2,835,680 2,939,817 2,985,719 3,736,477 1,991,749 2.930.767 3.747,284 2,907,953 3,813,456 2,619,705 636,366 613,534 581.733 4,246,552 3,506,899 3,515,733 3,618,960 4.593.449 3,718,983 3,556,610 4,671,829 3,725,686 4,751,349 3,191,342 787,072 744,353 713.865 4,518,609 3,797.183 3,837,736 3,989,142 5.182.402 4,291,881 4,160,078 5,600,706 4,542,289 5,751,645 3,817,920 933,309 922,861 842,775 45.341.682 52.188.536 1931. 1930. 1929. 1931. 1930. 23,806 974 x516 132 6,852 45 410 181 1,231 60,773 13,749 5,578 74 3,059 29,029 1,357 656 244 8,410 94 .541 151 1,538 74,596 16,582 7,905 79 3,478 36.862 2,672 624 238 12,176 555 628 267 1,399 94,602 20,942 11,759 80 4,547 12,5.54 1,064 143 7 10,755 66 16 21 3,315 33,474 16.167 1.401 4:i2i 17,423 1,833 137 5 13,597 70 16 20 3,690 40,194 21,364 1,783 2 5,019 117,380 144,770 187,351 83,812 105,153 18,718 15,014 679 3,208 21,803 17,820 970 3,498 29,103 25.498 1,032 5,278 5,022 3,338 1,137 370 7,493 4,743 1,887 469 37,619 44,089 60,911 9,867 14,592 8,982 989 361 171 48 1,687 513 406 7,130 19,926 178 12,874 1,319 627 179 112 2,188 594 409 10,254 24,241 214 13,643 1,559 695 235 109 2,396 492 500 11,331 28,718 219 4,270 1,147 679 313 65 1,211 821 3,386 3,344 10,904 796 5,966 1.399 1,076 419 148 1,553 1,008 4,177 4,155 14,218 1,026 40,391 53,011 59,897 26,936 35,145 222 644 676 3,184 x282 1,106 774 308 780 20,093 17,341 131 130 2,051 2,629 636 484 229 797 782 4,012 426 1.039 1,206 512 1.072 25,147 21,849 131 248 2,629 3,195 777 579 296 1,045 999 4,770 656 1,323 1,303 530 1,454 31,658 30,175 171 374 2,977 4,227 919 640 152 725 921 2,158 217 516 1.160 358 601 8,189 3,568 317 225 984 1,982 224 .539 231 966 1,324 2,664 305 777 1,262 382 967 10,264 4,638 426 301 1,427 2,285 394 544 Allegheny DistridBaltimore & Ohio Bessemer de Lake Erie Buffalo & Susquehanna Buffalo Creek & GauleY Central RR.of New Jersey.... Cornwall Cumberland & Pennsylvania Ligonier valley Long Island Pennsylvania System Reading Co. Union (Pittsburgh) West Virginia Northern Western Maryland Total Pocahontas DistrictChesapeake & Ohio Norfolk & Western Norfolk & Portsmouth Belt Line Virginian Total Southern DistrictGroup 4Atlantic Coast Line ClInchfield Charleston & Western Carolina Durham & Southern Gainesville kildland Norfolk Southern Piedmont & Northern Richmond. Fred. & Potomac-Seaboard Air Line Southern System Winston-Salem So athbound Total Five weeks in January Four weeks in February Four weeks in March Four weeks In April Five weeks in May Four weeks In June Four weeks In July Five weeks in August Four weeks in September Five weeks In October Four weeks in November Week ended Dec. 5 Week ended Dec. 12 Week ended Dec. 19 (-roe 25.830.782 I The foregoing, as noted, cover total loadings by the railroads of the United States for the week ended Dec. 19. In the table below we undertake to show also the loadings for the separate roads and systems. It should be understood, however, that in this case the figures are a week behind those/ofithe general totals-that is, are for the week ended Dec. 12. During the latter period only 15 roads showed increases over the corresponding week last year, the most important of which was the New York Ontario & Western Ry., Pittsburgh & West Virginia Ry., Florida East Coast Ry.,Ft. Worth & Denver City Ry.,and Midland Valley R.R. REVENUE FREIGHT LOADED AND RECEIVED FROM CONNECTIONS (NUMBER OF CARS)-WEEK ENDED DEC. 5 Group RAlabama, Tenn.& Northern Atlanta. Birmingham & Coast All. & W.P.-West RR.of Ala Central of Georgia Columbus & Greenville Florida East Coast Georgia Ocorsla & Florida Gulf iti°bile & Northern Illinois Central System Louisville & Nashville Macon, Dublin de Savannah.... Mississippi Central Mobile 4 Ohio Nashville. Chattanooga & St. L New Orleans-Great Northern.. TennesseeCentral Total 61,471 64,630 83,518 22,836 29,157 Grand total Southern Dial... 91,862 117,641 143,415 49.772 64,302 Northwestern DistrictBelt Ry. of Chicago Chicago & North Western Chicago Great Western Chic. Milw.St.Paul & Pacific Chic. St. Paul, Minn.& Omaha Duluth, Missabe & Northern._ Duluth, South Shore & Atlantic Elgin. Joliet & Eastern Ft. Dodge, Des. M.& Southern Great Northern Green Bay & Western Minneapolis & St. Louts Mina. St. Paul & 8.8. Marie_ Northern Pacific Spokane. Portland & Seattle... 986 14,762 2,647 19,238 3,752 455 391 3,377 280 8.574 505 1,807 4,814 9,303 783 1,253 17,371 3,076 22,525 4,772 618 969 5,330 324 10,890 560 2,604 5.767 11,759 1,006 1,082 21,837 3,582 27,578 6,622 924 1,380 7,808 401 11,639 687 3,058 7,493 12.500 1,372 1,275 8,448 2,327 6,699 2,700 84 290 4,415 126 1,758 343 1,416 1,657 1,978 891 1,661 10,574 2,938 8,100 3.312 107 520 7,447 218 1,812 586 1,961 2,023 2,464 907 71,674 88.824 107.863 34,407 44,630 21,677 207 3,348 17,161 13,879 2,873 1,675 3,568 655 1,721 427 102 13,746 272 270 15.192 1,117 1,522 26,903 249 3,792 22,328 15,503 3,116 2,248 4,498 476 1,585 721 91 18,782 304 261 17,391 1.078 1,753 31,767 328 4.199 26,237 19,645 4,497 2,720 5,511 876 2,342 773 217 19,811 346 333 19,703 1,238 1,498 4,053 39 1,794 5,611 6,358 1,939 977 2,030 12 993 207 90 3,607 261 616 6,794 10 1,191 99.312 121.079 142,041 36,582 44,466 163 130 305 2,062 333 1,471 226 1,870 1,310 315 964 75 5,038 15,814 47 x128 8.830 2,359 386 6,450 5,084 1,472 21 168 272 293 2,572 116 1,931 337 2,065 1.416 215 790 117 5,978 17,731 59 84 10,214 2,479 627 8,847 6,797 1,962 29 305 377 454 2,849 374 2,069 467 2,444 2,102 327 1,242 150 7,485 22,587 59 222 13,600 3,097 552 10.505 7.325 1,908 69 2,158 486 102 1,035 58 1,615 876 1,462 1,067 385 251 452 2,350 6,530 53 103 2,832 1,053 124 2,566 2,907 2,358 37 2,843 387 191 1,824 49 2,118 1,291 1,929 1,137 712 264 388 2,597 8,590 26 209 3,783 1,574 612 3.878 3.320 3,052 63 54,853 65.099 80,569 30,860 40,737 Total Eastern DiggriaGroup A-' Bangor & Aroostook Boston & Albany Boston & Maine Central Vermont Maine Central N. Y.N. H.& Hartford Rutland Total Group 11Buffalo, Rochester & Pittsburgh Delaware de Hudson Delaware Lackawanna & West Erie Lehigh & [Judson River Lehigh & New England Lehigh Valley Montour New York Central New York Ontario & Western Pittsburgh & Shawmut Pitts. Shawmut & Northern Ulster & Delaware Total Group CAnn Arbor Chicago, Ind.& Louisville C.C.C.& St. Louis Central Indiana Detroit & Mackinac Detroit & Toledo Shore Line__ Detroit, Toledo & Ironton • Grand Trunk Western • Michigan Central monongaftela New York, Chicago & St. Lost Pere Marquette Pittsburgh et Lake Erie Pittsburgh & West Virginia__ Wabash • Wheeling & Lake Erie Total Total Loads Received from Connections. Total Revenue Freight Loaded. Railroads. • Grand total Eastern District 1931. 1930. 1929. 1931. 1930 1,699 3,290 8.533 683 2,867 11,906 633 1,768 3,821 9,998 888 3,499 13,066 633 2,054 3,814 11.194 904 4,359 15,290 652 238 5,190 10,361 2,569 2,291 12,134 1,010 332 6,056 12.067 2,920 3,115 14,405 1,118 29,611 33,673 38,267 33,793 40.013 2,926 6,059 10,006 11,672 155 1,730 8.367 1.733 20,102 2,100 465 377 38 3,826 7,150 11.071 12,941 173 1,790 8,781 2,120 25,137 1,259 634 511 40 5,116 10,013 12,965 17,156 244 2,035 11,979 2.035 30,046 1,920 938 534 39 1,155 6,777 5,468 12,821 2,044 991 6,898 57 26.636 1.947 29 245 87 1,077 8,011 6,146 18,746 2,405 1,345 8,361 29 34,352 2,350 27 290 79 65,730 75,433 95.020 65,155 80,218 563 1,699 8,545 38 237 210 1,153 2,611 5,624 3,806 4,292 4,563 3,008 1,112 5,561 2,471 496 2,107 9,616 57 315 194 1,839 3,278 6,537 5,061 5,044 4,763 4,576 1,017 6.014 2,941 513 2,439 12.422 76 365 255 2,271 3,674 7,308 6,848 5.896 6.544 6,718 1,119 7,103 3,801 1,082 1,903 10.858 66 107 2,638 1,396 6,544 8,952 190 8,043 4,339 4,743 609 6,831 2,067 1,441 2,328 13,700 76 117 3,106 1,969 8,196 10.630 238 11.045 4,940 5,898 553 8,975 2.583 45,493 53,855 67,424 60,367 75,795 140,834 162.961 200,711 159,315 196,026 Total Loads Received from Connections. Total Revenue Freight Loaded. Railroads. Central Western Mart:Staab. Top.& Santa Fe System. Bingham & Garfield Chicago & Alton (Alton) Chicago. Burlington & Quiner Chicago, Rock Island & Pacific Chicago & Eastern Illinois.... Colorado & Southern Denver & Rio Grande Western_ Denver & Salt Lake Fort Worth ttr Denver CItY Northwestern Pacific Peoria & Pekin Union B. P.(Pacific) St Joseph & Grand Island Toledo, Peoria & Western Union Pacific System Utah western Pacific Total Southwest DistrictAltou & Southern Burlington-Rock Island Fort Smith & Western Gulf Coast Lines Houston & Brazos Valley International-Great Northern.. Hanna. Oklahoma & Gulf KIWIS. City Southern Louisiana * Arkansas Litchfield & Madison Midland valley Missouri & North Arkansas blissouri-Karniss-Texas Lines Missouri Pacific Nstches & Southern Quanah Acme & Pacific 1,min-flan Francisco Ht. Louis Southwestern Ran Antonio, Uvalde & Southern Pee. In Tem & Ls.._ Texas & Pacific Terminal RR.Mao.of Si. Louis Weatherford Min. Wells & Nor. Total sPrevious figures. 6,207. 60 2,538 7,159 8,233 2,282 1,398 1,999 10 1,136 273 115 4,027 205 835 7,725 14 1,260 32 FINANCIAL CHRONICLE Guaranty Trust Co. of New York Sees Business Activity at End of Year at Lowest Ebb in Depression— Hard Work, Economy, Balanced Production and Budgets Important Factors in Recovery. The end of the year finds business activity at the lowest ebb since the beginning of the depression, states the Guaranty Trust Co. of New York in the current issue of "The Guaranty Survet," its monthly review of business and financial conditions here and abroad, published Dec. 28. Among other things, the "Survey" says: Altogether, this country and the world outside face one of the great dramatic moments of history whose outcome is still too clouded to be forecast and only as men's minds rest back upon the assurance that sound methods will eventually produce sound results and that the course of events is always upward in the long run is there any great ground for present optimism. Hard work, economy, and balanced production and budgets will be important factors in any recovery, and, if their lessons are learned, may speed it more rapidly than Is now anticipated." We also quote from the "Survey" as follows: The year 1931,like 1930, has been one of swift and rather steady recession in the volume of business and in prices, punctuated by temporary rallies that created false hopes for recovery. In the early months of both years, there were fairly well defined increases in industrial output and in trade volumes that could not be traced entirely to seasonal causes; and these upturns were regarded in some quarters as the beginnings of business revival. All such favorable interpretations were discredited by the actual course of developments. Problems for the New Year. The New Year will bring with it many unsolved problems which will affect its course. The solution of these problems will take time and effort. The financial stabilizing of Europe, the balancing of our national budget, and the restoration of confidence are perhaps the outstanding tasks before us, but they are attended with many other problems involved in the situation. International debts, high tariffs, inflation, and political uncertainties are deterrents to economic progress that must be reckoned with, and still the process of readjustment to new standards of value must go on. The efforts of the Government to strengthen bank, railroad, industrial and real estate credit bid fair to be helpful and it may be that the worst of the crisis is over both here and abroad. But only the developments of 1932 can reveal that. Two obvious facts, however, face us as necessary precursors to financial stability here. First, a policy of rigid economy in governmental expenditure must be enforced in order to balance the Nation's budget. Such a policy must also be adopted by cities, States and other taxing bodies in order to preserve credit. Second, there is a limit to the borrowing capacity of Governmentand deficits cannot be indefinitely financed by loans. Injury to the credit of the Government and grave losses in value for its securities would inevitably follow reckless borrowing. Money for Government can come only from the pockets of the people through one or both of two sources, taxes and loans. If taxes are too high, business will be crippled and the capacity to pay lessened. If loans are too great, values will be injured and fixed charges increased. American investors cannot be coerced. They must be won, and governing authorities must reckon with this situation before launching any plans calling for enormous bond issues. 1931 Contrasted with 1930. The past year differed from the preceding one chiefly in that It marked a definite shift of emphasis to the European situation,and to purely financial, as contrasted with industrial, disturbances. The temporary revival in the spring of1930 was duo partly to a general failure to appreciate the seriousness ofthe situation that had been gradually developing,and partly to the strenuous efforts that were made to stimulate confidence and prevent a drastic deflation of values. The improvement in the early part of 1931 was based on the view that the recession had run its normal course. But this view failed to allow for the conditions that had arisen in Europe. The situation at the moment, is considerably more encouraging than it was two months ago, in spite of the failure of security and commodity prices to maintain the firmer tendencies displayed in October and the early part of November. If the outlook depended entirely on conditions at home, it is conceivable that the possibilities for the early future might be regarded as fairly favorable. The fact is, however, that European prospects, which have become a vital factor in the American situation, are still too unsettled to permit any confident expectations for several months to come. Some means will undoubtedly be found to provide for the German short-term credits which, under the "stand-still" agreement, become due at the end of of February. Any settlement, however, will necessarily be in the nature of a continuation of tho present agreement. In other words, the credits will remain "frozen:" and the freezing of credits, while it may serve to prevent an immediate crisis, is not conducive to genuine economic recover'''. Encouraging Features. The situation, dubious as it is, has its encouraging features. Thus far, except for the recently annpunced moratorium in Hungary, there has been no default on any European loan, public or private. The German Government has taken drastic steps to restrict both Federal and local public expenditures and to increase the exchange value of the currency by lowering Prices, which will tend to improve the country's competitive position in world markets and to facilitate the payment of its international obligations. Present uncertainties arise not so much from the purely economic factors involved as from the tendency of governments in general to allow their political aims to blind them to the realities of the situation. The American Congress, in ratifying the President's plan for a postponement of debt payments, has expressed itself as definitely opposed to any further modification of the existing debt agreements. The President's project for a reappointment of the World War Foreign Debt Commission in order to re-examine the capacity of debtor nations to pay does not, therefore, appear to offer very promising possibilities for the near future. A somewhat similar attitude seems to exist in Franco with respect to the question of reparations, although it is possible that a downward revision of the war debts by the United States might bring about a marked change in the French attitude. Some Independent Recovery Possible. At present, it appears that European conditions will continue to present serious obstacles to business recovery in the parly part of 1932. While some means will undoubtedly be found to surmount the immediate crisis, the problems arising from the mal-distribution of gold are deep-seated and will require some time for a satisfactory adjustment. It does not follow, however, that American business must await such an adjustment before any progress can be made toward recovery. This country's economic [Vol,. 134. system is less dependent on foreign conditions than most others; and, while It would be a mistake to minimize the importance of foreign influences, it would be no less erroneous to conclude that the United States must remain In a state of economic paralysis until normalcy is restored in Europe. In this connection, it is interesting to note that American business,"after the severe depression of 1921, was well on the way toward recovery in 1922, despite the chaotic condition of European finance at that timeg&The United States enjoyed a distinctly good year in 1923 and went through only a minor recession in 1924; yet it was not until the spring of 1925 that Great Britain set the example for other European nations in returning to the gold standard. There is, therefore, nothing unreasonable in the belief that American business may experience some improvement during the coming year, even though monetary conditions abroad remain unsettled. Bureau of Labor Statistics at Washington to Issue Wholesale Price Index Weekly as Well as Monthly. In January 1932 the Bureau of Labor Statistics of the United States Department of Labor will begin the publication of a revised wholesale price index, to be issued weekly as well as monthly. In making this known a week ago, the Department added: The new wholesale price index carries 784 price entries, instead of 550 as before. For most part the additional items are the fully manufactured commodities, or the so-called "consumers' goods." The new index continues the average for the year 1926 as its price base. or as representing 100, and all additional commodities have been priced back to that date. The price material for the weekly index will be secured from such published sources as are available, and from direct weekly price quotations to the Bureau of Labor Statistics from manufacturers. The Bureau is much gratified by the large number of manufacturers who have agreed to report weekly, and takes this opportunity to extend its thanks to all of them. The weekly price index will be computed and released for publication each week in the month. The monthly index will be computed separately as heretofore but on the larger number of commodities. It will not be an average of the weekly indexes owing to the varying number of week endings in the month. Federal Reserve Board's Summary of Business Conditions in the United States—More Than Seasonal Decrease in Production and Employment. More than seasonal decline in production and employment during November is indicated in the monthly summary of business conditions in the United States, issued on Dec. 23 by the Federal Reserve Board. The Board's summary follows: Industrial activity and factory employment declined further from October to November, reflecting in part the usual seasonal tendencies. Continued gold imports and further reduction in member bank reserve requirements during November and the first half of December were reflected in a considerable decline in the outstanding volume of reserve bank credit. Production and Employment. In November Industrial production showed a somewhat larger decrease than is usual at this season, and the Board's seasonally adjusted Index declined from 73 to 72% of the 1923-1925 average. Activity declined at woolen mills, lumber mills and coal mines, while daily average output at steel mills Increased and volume of automobile production showed less than the usual seasonal decline from the low level of October. The November increase in steel production was followed by a considerable decline in the first three weeks of December. Output of petroleum increased further in November to a level slightly lower than that prevailing last summer before output was sharply curtailed. Volume of employment in most manufacturing industries declined by more than seasonal amount between the middle of October and the middle of November. Reductions were particularly large in the wearing apparel, leather and building materials industries, while in the automobile and tire Industries declines were smaller than usual at this season. The value of building contracts awarded, as reported by the F. W. Dodge Corporation, has declined further In recent months and a preliminary estimate of the Board's seasonally adjusted index for the last quarter of 1931 is 49% of the 1923-1925 average, compared with 59 for the third quarter. 65 for the second quarter and 79 for the first quarter of the year; part of this decline in dollar volume reflects lower building costs. Production of principal crops In 1931 was about 10% larger than in 1930, according to the December crop report of the Department of Agriculture, while acreage harvested was slightly smaller than a year ago. There were large Increases in the crops ofcotton,corn, winter wheat,apples and peaches. while the harvests of oats, barley and rye were smaller than last year; as in 1930, the hay crop was unusually small. Distribution. Commodity distribution continued at about the same rate in November as in October, the volume of freight-car loadings showing a seasonal decline, while sales at department stores increased by about the usual amount for that month. Wholesale Prices. The general level of wholesale prices remained practically unchanged from October to November, according to the Bureau of Labor Statistics index, prices of grains, petroleum and silver advanced, while those of livestock and dairy products showed declines, partly of a seasonal character. Between the middle of November and the middle of December there were decreases in the prices of many leading commodities, including livestock. meats, grains, sugar, silk and silver; during this period prices of copper and rubber showed a decline, followed by a recovery. Bank Credit. Volume of Reserve Bank credit outstanding declined during November and the first half of December, and averaged $360,000.000 less in.the week ended Dec. 12 than at its October peak seven weeks earlier. The decrease was in large part in the banks' portfolio of acceptances, as discounts for member banks and holdings of United States Government securities showed little change for the period. The decline in the total volume of Reserve Bank credit outstanding during the period reflected a growth of $100,000,000 in the stock of monetary gold, largely through imports from Japan, and a continued reduction In the reserve balances of member banks, reflecting a further liquidation of member bank credit. Demand for currency declined during the last three weeks JAN. 2 FINANCIAL CHRONICLE 1932.] 33 of November, and showed considerably less than the usual seasonal increase parently flowing back into circulation and credit conditions should therefore in the first half of December. After the middle of December, however, be considerably easier than they were in the fall. The political outlook adds to the uncertainty of business. At this writing bank suspensions in New England were followed by some increased withit would be foo.ish even to hazard a gums as to what sort of act ion the new drawals of currency, part of which has begun to return. Loans and investments of member banks in leading cities continued to Congress may see fit to take with respect to the various proposals contained decline, and on Dec. 9 were 5370.000.000 smaller than four weeks earlier. in the Presidents message. The decrease was equally divided between the banks'loans and their investIn the meantime business in the United States is seen to be marking time. ments. Deposits of these banks, both demand and time, also showed a Retail trade in November was at comparatively low levies, even the chain stores failing to make as good a showing as in some of the earlier months of decrease, with a consequent reduction in required reserves. Money rates in the open market showed little change from the middle of the year. Freight traffic continued poor, building lagged. iron and steel middle of December. Rates on production fell to 25% of capacity by the middle of December. foreign to the prime commercial paper November to 4%, while rates on 90-day bankers' acceptances ad- trade remained low and commodity prices failed to maintain earlier gains continued at 3 vanced from 2% to 3% on Nov. 25. Decrease of 18% Noted in Wholesale Trade in New Monthly Indexes of Federal Reserve Board. York Federal Reserve District in November This Year As Compared With November 1930. The Federal Reserve Board's monthly indexes of industrial production, factory employment, &c., were released as The dollar volume of November sales of reporting wholefollows Dec. 24: sale dealers averaged 181A% less than in 1930, a somewhat BUSINESS INDEXES. smaller decline than in the three previous months, according (Index numbers of the Federal Reserve Board 1923-25=100)• to the Jan. 1 "Monthly Review" of the Federal Reserve Without Adjusted for Bank of New York. The "Review" further says: Seasonal Variation. Seasonal Adjustment. Although continuing substantially below the previous year, sales of stationery, shoes and cotton goods did not show as large decreases as in October, and machine tool orders reported by the National Machine Tool Nov. Oct. Nov. Nov. Oa. Nov. Builders Association showed the smallest decrease from a year ago since 85 Industrial production, total 84 p73 75 73 October 1929. Sales of silk goods, reported in yardage by the Silk Assop72 572 83 Manufactures 83 72 p71 71 ciation of America, also compared much more favorably with the previous 95 Minerals 92 p83 89 p81 85 year than in October, and the decline in drug sales diminished. Wholesale Building contracts, value p44 52 68 76 p49 55 hardware, grocery and paper dealers reported slightly smaller decreases p27 46 30 48 29 Residential p28 71 86 All other 99 p57 p67 76 than in October, but sales of men's clothing were further below 1930 than Factory employment 69.3 70.3 8.11 68.7 71.4 81.0 In the preceding month. Sales of jewelry and diamonds again showed 56.2 59.4 75.1 Factory payrolls large declines from a year previous. 84 86 69 70 78 Freight-car loadings 68 The value of merchandise stocks held at the end of November continued 113 86 98 597 93 Department storm sales P85 substantially below 1930 in all reporting lines except drugs. The ratio INDUSTRIAL PRODUCTION-INDEXES BY GROUPS AND INDUSTRIES.' of collections to accounts outstanding was slightly higher than a year previous. (Adjusted for seasonal variations.) 1931. 1930. 1931. Manufactures. Group and Industry. Mining. Industry. 1930. 1931. Nov. Oct. Nov. 46 p90 p91 __ 30 p34 p82 64 p62 -_ 65 93 94 103 47 74 81 86 86 151 77 119 Bituminous coal Anthracite coal Petroleum Iron ore Zinc Silver Lead 67 66 p124 11 45 40 61 71 91 116 42 47 40 66 I 114 43 93 91 99 35 26 82 73 p65 161 74 112 1931. 1930. Nov. Oct. Nov. e000.P.OMO 00 00 •—u0Is IN.SO •—• Iron and steel Textiles Food products Paper and printing... Lumber cut Automobiles Leather and shoes_ Cement Nonferrous metals Petroleum refining Rubber tires Tobacco manufacn_ 1930. FACTORY EMPLOYMENT AND PAYROLLS-INDEXES BY GROUPS AND INDUSTRIES. Employment. Group and Industry. Payrolls. Adjusted for Sea- IVithout Seasonal Without Seasonal Adjustment, sonal Variations. Adjustment. 1931. 1930. 1931. 1930. 1931. 1930. Nov. Oct. Nov. Nov. Oct. Nov. Nov. Oct. Nov. 65.3 66.2 80.2 65.0 663 79.8 41.2 43.9 68.9 Iron and steel 64.6 65.6 85.7 63.8 65.2 84.7 48.3 50.2 75.1 Machinery 73.6 76.0 79.4 74.3 77.4 80.1 59.3 66.0 73.4 Textiles, group 73.7 74.9 77.9 74.9 75.6 79.1 60.1 62.9 73.0 Fabrics 73.4 78.7 83.0 72.8 82.2 82.4 57.8 72.2 74.4 Wearing apparel 85.9 85.5 91.4 88.0 89.2 93.6 83.0 85.9 96.5 Food 89.7 91.0 97.0 91.0 91.4 98.4 90.6 91.4 105.0 Paper and printing 47.4 48.4 60.4 48.4 50.1 61.6 34.4 38.2 54.7 Lumber 53.4 51.7 68.6 50.6 51.5 64.9 45.2 45.3 60.8 Transportation equipment 56.1 60.6 76.4 49.9 50.5 67.9 42.3 41.4 57.4 Automobiles 70.1 76.4 77.4 69.6 79.2 76.9 47.0 56.4 55.0 Leather 55.9 57.6 70.0 56.3 59.0 7C.4 40.9 43.9 60.9 Cement,clay and glass 61.4 61.7 71.8 60.8 60.8 7C.9 48.8 49.9 67.3 Nonferrous metals 83.1 85.4 98. 83.5 85.7 98.6 76.4 80.8 96.1 Chemicals, group Petroleum 82.2 83.2 100. 81.4 83.0 99.8 77.3 80.8 103.2 73.3 70.3 75. 70.7 70.2 72.6 50.1 53.7 58.7 Rubber products 74.8 75.8 82. 79.3 79.9 87.1 64.5 64.6 76.8 Tobacco •Indexes of production, car loadings, and department store sales based on daily averages. p preliminary. z Revised index based on 3-month moving averages, centered at 2nd month. See Federal Reserve Bulletin for July 1931. Union Trust Co. of Cleveland Views as Encouraging Factor the Part Now Assumed in Reparations and International Debt Looking for Early Settlement of Problems. Encouragement in the outlook is to be found in the fact that problems of reparations and international debts as well as of budget balancing in this country have come to the place where they must be attacked and settled in one way or another in the comparatively near future, says the Union Trust Co., Cleveland, in its current survey of business conditions. For months it has been known that a solution of the international debt and the domestic budget problems must sooner or later be undertaken and the knowledge has hung over business, tending to create caution and delay, the bank points out in its magazine "Trade Winds," adding: The soon r some definite action is taken-the sooner what must happen actually comes to pass-that much nearer will we be toward the accomplishment of a complete economic readjustment which must be the foundation of any business recovery. Encouragement is found in the fact that farm prices on the whole are higher than earlier in the year. Automobile production is definitely on the immense and promises to continue on the upgrade during January. The banking situation has definitely improved. Not Only has general public confidence in banks been restored but hoarded money is now ap- Commodity, Percentage Change, November 1931 Compared with October 1931. Net Sales. Groceries Men's clothing Cotton goods Silk goods Shoes Drugs Hardware Machine tools** Stationery Paper Diamonds ry Jewelry Stock End of Month. -15.7 +1.4 -47.1 -___ -14.8 -9.7 -0.7* +2.2* -16.0 -13.1 -22.4 -4.2 -15.9 -5.7 +14.2 -___ +0.3 -_--14.6 __-_ -34.9 -7.5 ---7.2 Percentage Percent of Accounts Change, Outstanding November 1931 October 31 Compared with Colleaed In November 1930. November. Net Sales. -17.4 -21.8 -15.5 -4.0* -21.5 -9.2 -19.5 -15.9 -18.4 -20.3 -57.8 --36.9 Stock End of Month. 1930. 1931. -22.3 69.0 __ _ 29.1 -22:8 31.2 -11.0* 46.7 -22.1 41.5 +26.0 38.3 -44.1 44.6 ---_ ___ 64:4 -___ 58.4 -45.5 118.7 --40.8 f 71.2 29.8 31.8 61.3 36.6 42.6 43.2 -19.6 -_-_ -18.5 Weighted average -_-_ 46.4 *Quantity not value. Reported by Bilk Association of America. **Reported by the National Machine Tool Builders' Association. 6-3:8 47.9 ) 18.1 47.9 November Sales of New York Federal Reserve District Department Stores Reported VA% Smaller Than Same Month Last Year. The Federal Reserve Bank of New York, in its Jan. 1 "Monthly Review" stated that the dollar volume of holiday trade in leading department stores in New York and vicinity was about 7% below the previous year, according to preliminary reports on sales during the first 24 days of December. Assuming a similar decrease for the entire month of December, the total dollar sales of the reporting stores for the year 1931 will show a decline of slightly more than 8% from 1930, but in view of the lower prices prevailing in 1931 the quantity of goods sold by these stores during the year probably was close to that of the previous year. The bank continues: For November, department stores in this district reported sales 1034% smaller than in 1930. The New York City, Rochester and Bridgeport stores reported about the same percentage declines from a year ago as in October, but in other parts of the district sales declined more than In the previous month. The leading apparel stores. however, reported a considerably smaller decrease in sales than in October. Stocks of merchandise on hand at the end of November. at retail valuations, showed an even larger decline from a year previous than in other recent months. The rate of collections on charge accounts continued to be somewhat slower than in 1930. Percentage Change from a Year Ago. Locality. P. C. of Accounts Outstanding Oct. 31 Collected in No ember. Net Sales. Nov. New York Buffalo Rochester Syracuse Newark Bridgeport Elsewhere Northern New York State Southern New York State Hudson River Valley District Capital District Westchester District All department stores Apparel stores --9.7 --17.1 --13.1 --18.1 --9.0 --15.9 --15.4 --26.3 --9.8 --I5.3 --16.0 --17.3 --10.5 --12.8 Mout on Hand Jan. End of to Nov. Month. --8.2 --11.3 --8.8 --11.0 --6.5 --11.5 --9.8 1930. 1931. -14.4 -8.7 -23.7 -15.9 -13.4 -21.2 -11.3 49.3 46.7 44.1 31.8 42.1 39.1 33.4 48.0 42.5 45.0 28.8 41.0 36.5 30.7 -17.1 45.4 46.0 41.1 ------- 243-.5 -10.9 44.4 'I Sales and stocks in major groups of departments are compared with those of November 1930 in the following table: Net Sales Percentage Change November 1931 Compared with November 1930. Stock on Hand Percentage Change Noy. 30 1931 Compared with Nov. 30 1930. () -1.3 -5.8 -8.3 -8.6 -10.3 -10.5 -12.5 -13.8 -13.9 -15.8 -17.2 -17.6 -18.4 -18.8 -19.9 -22.6 -27.4 -15.8 -10.0 -8.8 -27.7 +3.1 -16.8 -12.8 -13.4 -20.6 -11.6 -31.0 -8.9 -21.2 -24.5 -13.2 -15.6 -13.0 -25.3 -15.0 -19.7 Home furnishings Toilet articles and drugs Furniture Woolen goods Toys and sporting goods Women's and Misses' ready-to-wear Women's ready-to-wear accessories Luggage and other leather goods Shoes Hosiery Cotton goods Silverware and jewelry Linens and handkerchiefs Men's and Boys' wear Books and stationery Men's furnishings Silks and velvets Musical Instruments and radio Miscellaneous Chain Store Sales During November in New York Federal Reserve District 8% Smaller Than Year Ago. The Jan. 1 "Monthly Review of Credit and Business Conditions" of the Federal Reserve Bank of New York has the following to say regarding chain store trade in the Second District: Dollar sales of the reporting chain stores in November were nearly 8% smaller than In 1930, following an average year-to-year decline of about 23% during the previous 10 months of 1931. Grocery chain organizations reported the largest decrease in sales since May, the 10-cent and variety chain systems showed the largest declines in about a year, and sales of shoes were reported to have continued considerably smaller than In the previous year. On the other hand, sales of drugs and candy showed little change from 1930. All lines of chain stores reported decreases in sales per store, after allowing for the increased number of stores operated, and the average decline of 10% for all types of stores was the largest since December 1930. Percentage Change November 1931 Compared with November 1930. Type of Store. Number of Stores. Total Bales. Sales per Store. Grocery Ten-cent Drug Shoe variety Candy +2.6 +1.3 +1.1 +5.8 +3.0 +11.3 -3.5 -8.0 -1.2 -26.0 -10.3 +0.1 -6.0 -9.2 -2.3 -30.1 -12.9 -10.1 Total +2.7 -7.7 -10.1 Survey of 1931 by F. H. Rawson of First National Bank of Chicago-Artificial Restoratives Futile-Argues for Railroad Wage Reduction As Helpful to Situation Faced by Roads-Tax Question Most Important Domestic Problem. According to Frederick H. Rawson, Chairman of the First National Bank of Chicago, and the First Union Trust & Savings Bank of that city, the "tax question is perhaps the most important domestic problem facing our own people and every effort should be made to reduce governmental expenditures to the lowest possible level." On this question Mr. Rawson also says: CLE [Vol,. 134. aid to a distressed part of the population is the failure of the Farm Board. This was not due to any lack of ability on the part of the personnel of the Farm Board. It was the result of economic causes, just as the failure of the efforts to stabilize rubber and coffee prices in past years was due to the workings of immutable economic laws, We all realize that we cannot expect a well-balanced prosperity until the purchasing power of the farming classes has been equalized, either by a rise in the prices of the products which they sell or a decrease in the prices of the manufactured articles required. In all of this, the Farm Board was and could be of no assistance, but gradually wages have been reduced and in consequences prices of manufactured articles have fallen and have been brought nearer the reach of the agricultural classes of the community. For a time it was thought that high wages would increase purchasing Dower and thus help in bringing back more normal conditions. But it has gradually been realized that nominal high wages under existing circumstances merely added to the restrictions imposed upon the output of manufacturers and others, and that there would in fact be greater purchasing power maintained in the community as a whole by permitting wages to fall somewhat in the wake of commodity prices. The wage reductions have not been drastic and real wages of labor measured in purchasing power have not been reduced. In other words, the lower wages of to-day will buy as many goods as the higher wages of yesterday. It seem( that this situation has been understood by the wage earners themselves, since the wage reductions have not been accompanied by social disturbances to any extent and there have been far less labor disputes than occurred in 1921 or In previous depressions. To be sure, retail prices have not fallen to anything like the extent that has been true of wholesale prices. It would seem as if there was something wrong with our system of distributino and it ought to be possible to bring about some reform which would tend to cut down the lag existing between wholesale and retail prices. A striking example of the economic intelligence of labor leaders is shown by those who are at the head of the railroad unions. They met recently In Chicago and voted to recommend to the local unions that they discuss with railroad officials a voluntary reduction in their wages. The sum of money which would be added to the carriers' revenue by this reduction in wages would be approximately equivalent to the increase in revenue which would ensue if three times the sum saved by the wage cut were received in gross revenue from additional business. The leaders of the railroad employees are to be congratulated upon the constructive and broadminded manner in which they have dealt with the important problems confronting them. The final outcome depends upon the result of the negotiations between the railroad executives and the regional bodies. .. . If the railroad labor brotherhoods should agree to the wage reduction under consideration to take effect early in 1932, it would be most helpful in enabling the railroads to purchase rails and other equipment so that their efficiency and safety might be maintained intact. Everyone realizes the supreme importance which railroads have played and are still playing in the prosperity of the country. In spite of the development of other types of transportation, the railroads are still by far the most important and are absolutely essential for the economic well-being of the country. Anything which jeopardizes their financial soundness and thereby decreases their efficiency is almost certain to have an immediate deleterious effect upon the financial structure of the country. ... All nations are beginning to realize more and more that unless Germany's editors are willing to make it possible for Germany to sell her exports y a modification of tariff barriers, Germany will be unable to pay the existing private and war debts. But not only Germany and Great Britain are undergoing adjustments; the same is true of South America, Oceania, Asia and Africa, and many problems still remain to be solved. While this country is to some extent sufficient unto itself, some of its well-being does depend upon the prosperity of the rest of the world. The United States in the long run can only be prosperous in a prosperous world 4.1 Nal We trust that the year 1932 may show the beginning of improvement in business so that gradually the wound caused by the present depression will be healed, the business of the world take a new start and finally reach a firm and stable basis. Downward Trend in Living Costs of Industrial Workers Shown by National Industrial Conference Board. The cost of living for industrial workers continues the downward trend. In October 1931 the index stood at 84.9, compared with 100 in 1923. This was 0.8% less than in September. By reason of this decline the purchasing power of the dollar, as compared with 1923, rose from 116.8 cents in September to 117.8 cents in October, according to the monthly statistics published in the current issue of the Service Letter of the National Industrial Conference Board. The Board's statistics were made available Dec. 27, a statement issued on that date saying: We are still in this country comparatively free of overwhelming tax burdens such as exist in most European countries and which have been largely responsible for their present plight. It would seem wise to take steps looking toward the reform of our whole tax system in order that there might be some correlation between National and local taxes. At present each taxing body levies upon the same classes of the population without any reference to what is being done by any other taxing body. Even though, as indicated, our position is not as bad as it may become, there The Conference Board points out that in the current discussion of the are already manifestations that tax-payers have reached the limit of their patience, for here and there we hear of tax-payers' strikes and of the in- cost of living and its relation to the scale of wages there is considerable pay all the misunderstanding of what the figures mean to the worker. The wagecountry to taxes imposed the parts of some ability of people in upon them. The total taxes ought to be the result of co-operation and earner does not pay his rent and other items of his living costs with his hourly co-ordination between the National Government on the one hand and the earnings. He pays them with the contents of his pay envelope at the end State, county and municipality on the other, to the end that the total of the week, and what it contains depends as much on how many hours taxes be the result of intelligent planning and the aggregate thereby reduced. he has worked as upon how much he was paid for each hour. In other The tax situation in Chicago has created special difficulties locally. words, in considering the realtion of cost of living to wage rates underIt appears, however, as if there were some prospect at present of solving employment must be taken into consideration. For a number of years the statistical department of the National Industhis perplexing problem. trial Conference Board has kept records of the cost of living and The foregoing is from Mr. Rawson's "Survey of the Year of wages and hours of labor in 25accurate of the leading industries of the country. 1931" issued Dec. 31, in which he also says in part: This is accomplished by means of regular monthly reports from represenThe conditions described in our "Survey of the Year 1930" as existing tative groups of employers in each of the 25 industries. From these reports at that time are still prevalent, and this is particularly true of the almost the Conference Board is able to compile accurate data concerning the average continuous lower trend of the commodity price level which has now reached hourly and weekly earnings of workers in these industries and the number a point where it is in some cases even below the level of 1913 and 1914. of hours worked. It is the latter item that assumes unusual importance Furthermore, the values of stocks and bonds have also continued to decline, in the present business depression. The records show that the actual average number of hours worked per reflecting largely the lower earnings of nearly all business enterprise and the distressed situation of some. In November there was a considerable rise week by the employees in the plants surveyed by the Conference Board in in the quoted prices of wheat and corn and a slighter increase in the case August 1929 was 48.2 and that two years later, August, 1931, this average of cotton. However, the advance on the whole was not sustained and had fallen to 39.9 hours. Since the average hourly wage rate has declined the enthusiasm which the sudden increase brought about was dampened very little as compared with the decline in the cost of living, the question naturally arises as to what proportion of those wage-earners now employed and people again became dubious as to the future. In my judgment the situation has not been helped by the various attempts are putting in enough time to maintain their 1929 standard of living at the made to escape the inevitable liquidation which should have been allowed present augmented purchasing power of the dollar. Or, as the economists to continue its natural course. At first, many artificial restoratives were put it, what percentage of the workers now employed have been able to applied to the situation and only gradually as one remedy has proved more maintain the 1929 level of their real wages. In order to reach an approximate answer to this question, the Conference useless than another have the people learned wisdom and become suspicious of all such efforts. The most glaring example of a futile attempt to bring Board made a special analysis of the returns received for August, 1931 JAN. 2 1932.] FINANCIAL CHRONICLE The results show that, if 48 hours per week be considered full employment, only 14.4% of wage-earners at work in August, 1931, had full-time jobs. If, however, 44 hours per week be considered full employment, the percentage of workers with full time jobs runs to 37.4%, or somewhat more than one-third of the wage-earners employed in August, 1931. The remainder were under-employed and suffering in almost all cases some loss of money income, compared with August. 1929. A further analysis and comparison with employment in August, 1929, reveals that of those at work in August, 1929, 28.1 had no work whatever two years later, 10.3% were working 48 hours per week or more, and 16.9% or about one-sixth were at work less than 32 hours per week. Many difficulties are found in attempting to relate the hours of work with the reduction in the cost of living. "However," states the Conference Board, "it is clear that if the cost of living declines 15% and the hourly rate remains constant, the worker's hours can decline in a like percentage before his real income for the week is impaired. Thus if the wage-earner's normal working hours were 48 per week, he would have an advantage as long as his actual hours did not fall below 41.2. while if his normal week were 44 hours he could stand a reduction to 37.4 hours of actual working time before his real income was diminished." World's Needy Estimated at 100,000,000—United States Has Most Idle—Russia None. The following from Geneva, Dec. 24, is from the New York "Times": The world's needy are estimated this Christmas eve to total 100,000,000 men, women and children. The United States stands first In the list in the number of workers now out of employment with 6.000,000. Soviet Russia stand last with none. These calculations have been made by the International Labor Office here on the basis of estimates submitted by the Governments or labor organizations in the principal countries. For each breadwinner out of work,it is figured, there are four hungry mouths. The total number of workers now out of employment the world over is put at 25,000.000. Of this number 18,000,000 are accounted for by statistics submitted to the Labor Office. But no figures were received from the majority of South American and Asiatic countries, where Labor Office officials calculate there are at least 7,000,000 more unemployed. The unemployment figure of 6.000,000 for the United States was fur nished by the American Federation of Labor. Next in the list come Germany with 5,350,000 jobless and Great Britain with 2,650,000. Both of these are government estimates. The French Labor Federation reports 1,500,000 idle. This is believed to be more accurate than the Government's count of only 91.000. In Italy 800,000 workers are without jobs. Poland, Austria, Czechoslovakia and Hungary reported the next largest totals with 250,000 each. With one important exception, the Labor Office reports, unemployment Is increasing steadily throughout the world. That exception is Russia, which does not admit having any unemployment problem at all. 35 net tons, which was 16% under output in October and 21% under output In November 1930. The average October to November movement in recent years was a 4% decline. Electric power produced in November and the first half of December declined more than seasonally. On an average daily basis the October to November decline was 2%, whereas a slight increase is seasonal. Cotton cloth production showed a 2% increase in November, though a 2.5% decline would have been seasonal. Output in November was at a level 12% greater than it was in November 1930. Total distribution of commodities by freight, measured by carloadings, declined in November by 14% under shipments in October, to an average of 654.900 cars per week. The usual seasonal decline Is 12%. Shipments of merchandise and miscellaneous items, averaging 438,000 cars per week, showed a 4.5% decline between October and November, while a 12% decline is the average seasonal movement observed in recent years. Retail sales by department stores during the month measured in dollar values of transactions moved upward by 1%, though a 3% increase was expected at this time of the year. Five-and-ten cent store sales declined In value by 12%, while the usual downturn is 4%. Mall order sales declined 8%, though 5% would have been the average decline at this time of the year. 41 fit Wholesale prices in November remained fairly stable, on the whole, with gains in the prices of farm products, hides, leathers and building materials approximately making up for losses in prices of foodstuffs, textiles, chemicals and miscellaneous commodities. Steel and iron prices held their previous levels. Bank debits outside of New York City declined in November by 19%. though a decline of 9% has been observed in recent years. 1=30=1C Business Conditions As Reflected in Selected Indicators of National Industrial Conference Board. The following table of "Selected Business Indicators," prepared by the National Industrial Conference Board, furnishes a statistical picture of business conditions for the past month. Expressed in percentages of the average month of the years 1925 to 1929, except where indicated, the data, uncorrected for seasonal variations, afford a comparison of conditions between the last and previous months. [Base. average month 1925-29=100,except where otherwise Indicated.] Nov. 1931. Basic Production— Automobiles, U.S.& Canada_a Building contracts, total value_ Building contracts, residential_ Crude petroleum_b Steel ingot_b Plg iron_ b Bituminous coal Copper, world blister_d Zinc production, U.S. A Cotton cloth Newsprint paper, North Amer_ Electric power Baste Consumption— Crude rubber Zinc shipments, domestic &eel orders, unfilled Silk taken by manufacturers Stock on Hand,End of MonthCrude rubber Gasoline at refineries Copper, refined, N.& S. Am_d Zinc, U. B. A RAW silk in storage Distribution and Retail TradeCarloadings, total Car loadings, mdse,and miscel_ Advertising, newspaper lineage Commercial failures, number Commercial failures, liabilities_ Department store sales_a Five-and-ten-cent store sales Mall order sales Prices and Finance— Wholesale prices, general_e Corn. stks., Indus' prices_e Bonds, all, prIces_e Bank debits, outside N.Y.City Loans and investments Fed. Reserve credit outstandbuf 17 29 21 103 42 35 68 Oct. 1931. 23 47 29 99 38 36 81 Aug. Nov. to Oct. 1930. Average 37 47 28 93 40 37 74 37 49 38 97 58 59 87 1925-29 Average for Nov. Oct. 68 89 95 102 94 98 110 97 103 105 103 100 99 115 Business Conditions As Viewed by Conference of Statisticians in Industry—Evidences of Temporary Improvement Seen in a Few Instances— 40 42 42 62 98 100 96 94 91 108 111 88 Declines Less Than Seasonal. 92 97 93 101 106 107 113 115 114 119 106 105 Noting that "though the general movement (in November) 68 66 72 87 69 95 was downward," the Conference of Statisticians in Industry, 40 42 43 102 60 97 75 79 93 operating under the auspices of the National Industrial 100 80 97 124 111 114 125 103 109 Board, stated under date of Dec. 20 that "the net rate of 379 354 332 246 95 91 decline in business activity was not so great as has been 92 101 87 90 89 84 --------observed at this time in recent years." The statisticians ----395 394 393 438 103 98 observe that "the near future will tell whether the favorable 148 110 94 108 120 110 movements were due merely to a shift in seasonal ten65 74 76 80 102 115 69 73 62 76 101 115 dencies or to the possibility that a genuine upturn in business 80 86 76 88 110 115 116 125 110 108 has been initiated." 96 97 155 181 146 142 101 85 The favorable signs noted by the statisticians were: That 90 89 78 106 116 112 102 116 105 110 105 110 productive activity on the whole moved downward, but the 100 108 96 123 123 129 decline was considerably less than is usual at this time of 73 73 (e) 74 (e) 86 the year; that distribution between wholesaler and retailer 44 44 52 (e) 73 (b) 90 90 95 100 (e) (e) decreased less than usual; that automobile production de61 75 100 110 82 71 104 102 106 114 102 102 clined less than seasonally, partly compensating for the sharp 154 157 114 111 106 78 decline in October; that production of steel moved upward a Estimated. b Average daily basis. e January 198(100. d Copper games sharply, running against average tendencies observed in not reported this month. recent years, and that cotton cloth production showed a 2% increase in November, though a 2.5% decrease would have In Viewing Outlook for 1932 Central Republic Bank & been seasonal and the output in November was at a level Trust Co. of Chicago Says Withdrawal of Billion 12% greater than it was in November 1930. Dollars from Hiding Would Insure Business Gains On the other side of the picture it is noted that total and Ease World Conditions—December 1931 Regisfreight distribution by rail declined more than seasonally ters New Low for Current Depression. and the dollar value of retail trade fell off more than expected The Central Republic Bank & Trust Co. of Chicago, at this time of year. The production of bituminous coal under date of Dec. 29, has the following to say regarding and electric power both declined more than expected. Other the outlook for 1932: details of the picture for November follow: The business of 1932 depends upon each one of us. If we will take that In particular, the total number of automobiles and trucks produced in the United States and Canada in November, estimated at 65.560 units, declined by 20% under output in October, to a level 54% under that of a year ago. The average October to November movement in recent years was a 30% decline. The dollar value of building and engineering contract awards, reported by the F. W. Dodge Corp., declined in November by 38% under the level for October, to a total of $151,105,900. The average seasonal swing is a 14% decline. Residential contract awards declined by 25% to a total of $45,290,400. Compared with awards of a year ago the total value was 40% lower; residential awards were 44% lower. Steel ingot production, averaging 63,747 gross tons per day in November, was 8% greater than in October; the average seasonal movement in recent years was a decline of 6.5%. Pig iron production declined by 3% to a daily average output of 36.782 gross tons, while the average seasonal decline is but 1%. Unfilled orders at the end of the month with the United States Steel Corp. declined 6%,to a total of 2,933,891 gross tons. Bituminous coal mined in November declined to a total of 30,020,000 billion dollars out of its hiding places, and select a good sound bank in which to deposit it, we will so relieve the credit strain, and so lift the mental depression of the people, including our own selves, as to insure a liberal step-up in business volume during the early weeks Of 1932, and a general easing of world conditions which will surely reflect itself in our international trade, and in world prices. When this billion has been released, it will no longer be necessary for the banks of the country to hold still another billion in their vaults in preparation for demands of anxious dePositors. And thus, the release of this two billion dollars will set this country financially afloat in smooth waters, and ease the financial troubles of the whole world. The year 1932 will be what we make it. In its digest of trade conditions the Central Republic Bank & Trust Co. says: General Situation. As the year 1931 draws to a close, we are impressed with the similarity existing between the current year and 1930. The year 1930 presented_a 36 [VoL. 134. FINANCIAL CHRONICLE ap , ivcoacov.4comaam The index number and comparative weight for each of the 14 groups are combination of business phases never before experienced, and the year shown in the table below. 1931 presents a continuation of the operations of last year. The "Digest" for January 1931 described the 1930 business situation as WEEKLY WHOLESALE PRICE INDEX-BASED ON 476 COMMODITY "The composite picture of practically normal consumption; abundant -100). PRICES (1926-1928= money and low interest rates; record business by amusement enterprises* Increasing unemployment; and gains in sales and profits by the majority Latest Per Cent Year of public service companies, describe a condition without precedent in Month PreWeek Each Group Apo. Apo. Dec. 28 ceding Bears to the Group. American business annals. Week. 1931. Index. Total in "Indications at the opening of 1930 pointed toward some decline general business operations including the production of mines; the output 71.9 84.7 Foods 68.1 23.2 75.0 60.6 of factories; the tonnage of carriers; the volume of foreign trade; the turnFuel 58.7 16.0 75.6 62.8 12.8 Grains, feeds and livestock 50 8 over at wholesale and retail; and the employment and wages of men." 65.3 50.1 49.5 10.1 Textiles opening, These same words might again be used to describe conditions at the 66.0 75.0 8.5 Miscellaneous commodities._ 66.6 and through the year 1931. 89.4 89.3 6.7 89.1 Automobiles 84.5 75.0 6.6 73.4 Building materials Business Trend. 82.0 74.3 6.2 74.4 Metals 84.4 96.6 84.3 House furnishings 4.0 During the early months of 1930, a clear upturn in business occurred, 65.1 59.1 3.6 Fats olls and 55.8 of followed by some decline, and then a precipitate drop from the shock 94.6 86.6 1.0 88.9 Chemicals and drugs upturn, second the witnessed 1931 the drouth news. The early spring of 83.7 70.3 Fertilizer materials 0.4 70.4 93.6 80.2 79.6 Mixed fertilizer 0.4 followed by a general and sharp slump as a result of the distressing financial 95.6 93.0 92.7 Agricultural implements 0.3 conditions of Central Europe. During the last few weeks, a third upturn has occurred in numerous lines of industry and commerce. These gains 79.3 66.8 65.0 65.1 All groups combined 100.0 sufbeen nor they have industries of have not spread into the majority ficiently large to keep the average of all business from slipping to new and ower levels. As December 1930 was the low for that year, so is December Electric Output in the United States During the Week 1931 the low for the current year, and a new low for the present period of Ended Dec. 26 1931 Showed a Decline of 3.3% As depression. The business decline has been definite for 29 months, which period was Compared with the Corresponding Period Last preceded by some easing in business operations from April to July 1929, the Year-November 1931 Production 6.1% Below That entire length of the downward movement being 33 months. of Same Month in 1930. It is well to recall at this time that some lines of business were not included in the 1925-29 era of prosperity, and It is gratifying to know that The production of electricity by the electric light and some of these lines have shown material improvement during 1931; notably, the textiles and leather. the 1931 production and sales of silk, wool, cotton, power industry of the United States for the week ended and rayon fabrics and boots and shoes being not only above 1930 but above Saturday, Dec. 26 1931, was 1,564,652,000 kwh., according the 10-year average. to the National Electric Light Association. The Atlantic The year closes with inventories of raw materials and manufactured products at the lowest level since the World War, and with consumption, seaboard shows a decrease of 0.3% from the corresponding as measured by retail sales of merchandise, in tons and units, definitely week last year and New England, taken alone, shows an above average. Highway Construction Prices Drop One-Fifth-Six Miles May Now Be Built at Former Cost of Five. According to E. E. Duffy of the Portland Cement Association, construction prices are now lower by one-fifth. He says: This moans that six miles of highways can be improved for the same amount of money required for five miles two years ago. This extra mile cannot be taken as an Invitation to reduce the amount of money available for road construction, for the need for improved travelways Is too urgent for that. Quite to the contrary, progressive communities are now able to devote more and more attention to the construction of roads that will outlast the bonds, if any, and roads that cut down car operating costs and that other cost also borne by the motorist and taxpayer which is none else than high road upkeep. On the face of things, It is not a simple matter for a nation with more than 3.000,000 miles of roads to evolve a satisfactory program of improvement. But the United States, generally speaking, has done that. Most of these 3,000,000 miles are lightly traveled roads and many miles see no more than a couple of sets of tires daily. So out of the vast mileage of roads the State highway.systems have been created with a mileage of 325,000. These roads carry approximately three-fourths of all rural travel. They are the roads of the most benefit to the nation and the roads which through their improvement have made motoring what it Is. But there is still much to do on these main travel arteries. By the end of 1930. figures not being complete for 1931, a full 30% of the roads in the State highway systems were without surface of any kind. Low typo surfaces composed 44% of the mileage and high type pavements only 26%. Including 58,200 miles of concrete pavement. Two things can be seen from these figures. The encouraging one is that good progress has been made, and the other is that there is a real job ahead. The road problem cannot be successfully combatted by building roads that do not last, for there are too many miles eating up money that better could be spent for extending adequate pavement. Further, there is every evidence that motoring will rapidly increase. For instance, gasoline tax receipts for the first six months of the strange year of 1931 were ahead mandatory of those of any similar period. It is becoming more and more the that trunk lines and heavily traveled secondary roads be built with maintenance already In them. National Fertilizer Association Reports Wholesale Prices Advanced Slightly in Week Ended Dec. 26. Wholesale prices during the week ended Dec. 26 were fairly steady, according to the National Fertilizer Association's whose wholesale price index, based on 476 quotations advanced one fractional point during that week. During the preceding week the index declined three fractional points and two weeks ago the index declined seven fractional points. The latest index number, 65.1, is slightly above the record low point reached Dec. 19. A month ago the index stood at 66.8, while at this time last year it was 79.3. The index number 100 represents the average for the throe years 19261928. Based on 1913 as 100 the index number is 91.0. The Association's report issued Dec. 28 continues: increase of 1.0%. The central industrial region, outlined by Buffalo, Pittsburgh, Cincinnati, St. Louis and Milwaukee, registers, as a whole, a decrease of 7.2%, while the Chicago district alone shows a decrease of 6.4%. The Pacific Coast shows a decline of 3.0% below last year. Arranged in tabular form, the output in kilowatt hours of the light and power companies for recent weeks and by calendar months since the beginning of the year, according to the National Electric Light Association, is as follows: Weeks Ended 1931. 1930. 1929. Sept. 5._ __ Sept. 12__-_ Sept. 19____ Sept. 26-Oct. 3-_ Oct. 10.._-_ Oct. 17._ __ Oct. 24...._ Oct. 31____ Nov. 7____ Nov. 14.... Nov. 21____ Nov. 28._ Dec. b.__ Dec. 12____ Dec. 19___Dec. 26._ Months. January ____ February ___ March Apra May June July August September.... October ... _ _ November. _ December_ 1,635,623,000 1,582,267,000 1,662,660.000 1,660,204,000 1,645,587.000 1,653,369,000 1,656,051,000 1,646,531.000 1,651.792,000 1,628,147.000 1,623.151.000 1,655,051.000 1,599,900,000 1,671.466.000 1,671,717.000 1,675,653.000 1,564,652,000 1,630,081,000 1,726,800.000 1,722,059,000 1,714,201,000 1,711,123.000 1,723,876,000 1,729,377.000 1,747,353,000 1,741.295,000 1,728,210.000 1,712.727,000 1,721.501,000 1,671,787,000 1,746,934.000 1.748.109.000 1.769.944.000 1,617,212,000 1,674,588.000 1,806,259,000 1,792,131.000 1,777,854,000 1,819,276.000 1,806,403,000 1.798.633,000 1.824,160.000 1,815,749,000 1.798,164.000 1,793,584.000 1,818,169.000 1,718.002.000 7,439,888,000 6,705,564,000 7,381,004.000 7,193.691.000 7,183,341,000 7.057,029,000 7,222,869,000 7.144,840,000 7,042.783.000 7,256.279.000 6,830,000.000 8,021,749,000 7,066,788,000 7.580,335,000 7,416,191,000 7,494,807,000 7,239.697.000 7,363,730,000 7,301,196,000 7,337,106,000 7,718,787,000 7,270,112,000 7,566,601,000 7.585.334,000 6,850,855,000 7,380,263.000 7,285,359,000 7,486,635,000 7,220.270.000 7.484.727,000 7,773,878,000 7,623,395,000 8,133,485.000 7.681,822.000 7,871,121,000 Tnt0 veal. RQ 4117 1928. 1931 Glutei 1930. 1,484,000,000 I x4.1% 1,604,000,000 1 1.614.000,000 3.4% 1,623,000,000 3.2% 1,637,000,000 3.8% 1,651,000.000 4.1% 1,665.000.000 4.2% 1,678.000.000 5.8% 1,688.000.000 5.1% 1.697.000.000 5.8% 1.696.000.000 5.2% 1,701.000.000 3.9% 1.619.000.000 4.3% m06.225.000 1.706.000.000 4.3% 1,840.863.000 1.716.000.000 4.4% 1,860.021.000 1.710.000 000 5.3% 1,637.683.000 1.527.000.000 3.3% 6,637.064,000 6,269.337.000 6,632,542,000 6,256,581.000 6,552,575,000 6,454,379,000 6,570,110,000 6,944,976,000 6,724,148,000 7,360.499.000 7.174.145 000 7,233,488,000 7.3% 6.1% 2.6% 3.0% 4.2% 2.5% 1.9% 3.3% 4.0% 6.0% 6.1% 6100 000 an 977 Ing non an son ail nnn x Because of irregularity of Labor Day holiday, change is calculated for the first wo weeks of September. Note.-The monthly figures shown above are based on reports covering 92% of the electric light and power industry and the weekly figures are based on 70%. Life Insurance Sales in United States in First Ten Months of 1931 Decline 15% as Compared with Same Period in 1930-November Sales Only 4% Less than November 1930-Study of Life Insurance Growth. According to the Life Insurance Sales Research Bureau at Hartford, Conn., although average figures of life insurance sales for 1931 are below those of last year, the trend during the past few months has been very encouraging. The Bureau on Dec. 19 added: When the experience for the current month Is better than the average Indication is that business is improving. Of the 14 groups comprising the index, four advanced, five declined and experience of preceding months, the States as a whole for the first ten months of 1931 were the remaining five showed no change during the latest week. The advanc- Sales in the United while sales in November of this year period, same ing groups were grains, feeds and livestock, fats and oils, foods and textiles. 15% below 1930 for the when compared to November a year ago. The largest increase was shown in grains, feed and livestock. The declining show a decrease of only 4% an excellent reflector of general economic conditions, groups were metals, fuel, fertilizer materials, mixed fertilizer and mis- Since life insurance Is sales indicates better business conditions. cellaneous commodities. None of these groups declined as much as 1% this improvement in life insurance The improvement is not confined to any particular part of the country; The largest decline, four fractional points, was shown in metals. conditions were evident in every section. Thirty eight better substantially Advances were made in the prices for 19 commodities, while declines were upward trend. Two sections of the country, the Middle shown in the prices for 23 commodities during the latest week. Higher States showed an recorded not only an improvement over previous prices were noted for cotton, burlap, eggs, cattle, hogs, tin, copper and Atlantic and Pacific States, Increased sales over November 1930. Sales in rubber. Lower prices were shown for silk, wool, lard, sugar, apples, corn, months of the year. but over 2% November 1930, In Pennsylvania 3% and Increased York New oats, silver, finished steel, rosin, gasoline and hides. JAN. 2 1932.] FINANCIAL CHRONICLE California 4%. Gains during the month also occurred in Indiana, Virginia, Florida, Arkansas, Colorado, Nevada and District of Columbia. The following table shows the comparison by sections of sales in November and dur:ng the eleven months of 1931. It is evident that in every section except New England the experience in November Is better than for the year to date. November 1931 Compared 11 Mos. 1931 Compared to November 1930. to First 11 Months 1930. New England Middle Atlantic East North Central West North Central South Atlantic East South Central West South Central Mountain Pacific 94 101 96 89 93 89 93 91 101 94 88 85 82 86 77 79 81 80 United States total 96% 86% These figures are compiled from reports made to the Life Insurance Sales Research Bureau at Hartford, Conn. The 76 companies reporting their experience represent 88% of the total legal reserve ordinary life insurance in force in the United States. Reviewing the growth of life insurance, the Bureau had the following to say on Dec. 19: A study of life insurance reveals a steady growth, proof of the increasing recognition of its value. Fifty years ago annual sales totalled approximately $200,000.000, less than half the volume sold during the poorest month of 1931. During the next ten years sales increased to $1,000,000,000 In 1890, a gain of about 400%. During the next twenty years the growth was steady but more gradual; by 18910 annual sales reached almost $2,000,000,000. The next decade, from 1910 to 1920, was one of unprecedented growth. Every year sales increased until in 1920 the country purchased about $8,000,000,000 of new life insurance. This represented an increase of over $6,000.000,000 in annual sales in ten years. In 1921 the volume fell off somewhat, but from 1921 to 1929 every year showed a gain until the peak was reached in 1929. Decreased incomes in 1930 and 1931, however, retarded the growth of life insurance sales. The economic situation during 1931 has been one of the most severe in history-incomes of all classes have been cut, in many cases completely wiped out. Despite such decreased earnings, life insurance has been affected less than most industries. Using a conservative estimate for December,sales during 1931 have averaged about $30,000,000 for every working day. Compared to fifteen years ago sales for 1931 show a gain of over 300% Unemployment in Europe, November 1931. The Department of Labor has received through the Department of State advices by cablegram regarding unemployment in November 1931 in the principal industrial countries of Europe. The figures reported are compiled by the official agencies of the several countries and are shown in the following table for the month of November 1931, and for purposes of comparison for November 1930 and October 1931. Since these figures in no instance are arrived at by means of a complete canvass of the unemployed and represent different proportions of the working populations in the respective countries, they are to be accepted merely as reflecting the movement with regard to unemployment and not as indicating total unemployment. 37 The Indiana general business index declined to a new low level. Drastic curtailment of production has resulted in sharply reduced inventories of many lines of finished goods and manufacturers will quickly feel any increase in retail trade. Clothing and department store sales were retarded by exceptionally warm weather during the first three weeks of November. Cooler weather during late November and early December stimulated trade. Drug store sales were slightly under a month ago. Automobile sales made less than the normal seasonal decline. November registrations of now and uses cars were 51.6% and 30.1%, respectively, under normal. With few local exceptions employment declined slightly during November. Most factories were on part time schedules. The decline in industrial employment was slightly larger than the season gain in employment In retail stores. Metal trades employment was under a month ago and a year ago. Employment in mines and quarries remained far under normal. Employment in the building trades made more than the normal seasonal decline. The Indiana building index declined to a point 70.2% under normal with building in most sections at a standstill. Building stone shipments from the Bloomington-Bedford district made more than the normal seasonal decline to a point 67.4% under normal. Steel mill operations continued the decline started in April with mills In the Indiana-Illinois district operating at 24% capacity during late November. The support expected from the automobile industry materialized only In part, and the railroads have been awaiting the outcome of the wage controversy. Meat packing industry made less than the normal seasonal gain. Passenger car production continued under normal. Most furniture plants continued to operate on part time schedules. Preliminary reports Indicate that Indiana coal production declined to a point 24.6% under normal. Check transactions were lower In November than during any other month in recent years. Bank debits in eight Indiana cities made more ban the normal seasonal decline to a point 27.6% under a year ago and 38.9% under normal. Bank clearings in seven representative cities were 31.9% under a year ago. Business failures were above a month ago and a year ago. Reports from five representative Indiana markets indicate that hog and cattle receipts were 27.6% and 27.7%, respectively, under normal. Total post office receipts in 39 Indiana cities were 6.2% under a month ago and 11.6% under a year ago. Freight car loadings at Indianapolis made more than normal seasonal decline. Midland Bank of Cleveland Says Chief Hope for Revival of Business in United States Is Automobile Industry-German Question Most Pressing of World Problems. Assuming some progress in settling foreign difficulties, the chief hope for a spring revival of business in this country is the automobile industry, says the Midland Bank, Cleveland, in its survey of business. The improvement in the motor car trade in the early months of 1932 will probably be of more than seasonal proportions from the excessively low production that has existed throughout the fourth quarter of 1931. "There is little doubt that a very considerable replacement demand is backing up, and that the cars to be exhibited in January will be more attractive both as to style and price," says the Bank in its survey edited by D.C.Elliott, Economist The survey continues: UNEMPLOYMENT IN EUROPEAN COUNTRIES. "On the other hand the purchasing power of the public has been reduced and the old worn-out cars now impeding traffic can probably be made to Number of Unemployed. Per Cent of Change run a while longer. But granting for the sake of argument that spring sales of cars in 1932 vdll be no better than 1931, there is still room for a marked NO0011OctoNorem- Nor. 1930 Oct. 1931 upswing from present abnormally low levels. Country and Classification. her her her to to 1930. 1931. "The chief problem confronting the world for 1932 is the restoration of 1931. Nov. 1931 Nor. 1931 financial stability. Perhaps one year will prove too short a period for a Austria: Receiving benefit_ _ '237,745 228,101 273.658 +15.1 +20O solution of all the existing evils, but at least some progress toward a solution Czechoslovakla:Trade-unionists 155.203 253,518 336,874 +117.1 +32.9 France: Receiving benefit_ _ _ must be made if any substantial world business recovery is to occur. 4.893 51,654 92.157 +1,783.4 +78.4 Germany: Registered 3,683,000 4,622,000 5.057,000 "The German question is of course the most pressing at this time, but +9.4 +37.3 Great Britain: ItegLstored_ _ - - 2,274,338 2,755,559 2,656.048 +16.8 -3.6 other problems are Just behind-war debts, disarmament, tariff policies, Italy: Registered 534.356 799,744 878,000 +64.3 +9.8 the gold standard. While the present outlook as to these matters is somePoland: Registered 209,912 253.355 259,676 -23.7 +2.5 what obscure, international conferences are continually going on and the The Department of Labor, in making available the above feeling is growing that mutually satisfactory settlements will be reached sooner or later. figures, said: "Recent steps looking toward relief for the railroads are encouraging. While the change in number of unemployed registered and receiving These include the formation of a pool to use the proceeds of freight increases benefit varies widely from country to country as between the two months as an aid to weaker roads, the meetings now being held with reference to and two years shown in the table, a common characteristic of the figures voluntary wage reductions, and the plans for relief through the proposed for all countries is a very general increase in unemployment. The single exception to this upward movement is furnished in the change government reconstruction corporation. "No great change has taken place in the Cleveland picture. Activity in In registered unemployed in Great Britain as between October and November 1931, when the number of persons so registered decreased from a total steel plants is under last month owing to the delay in automotive purchasing, but the prospect is for an uptrend after the first of the year. of 2,755,559 In October to 2,656,088 in November. or by 3.6%. In Poland "Automobile sales in the first part of December were well ahead of the the increase in registered unemployed during the same one-month period was 2.5%. in Germany. 9.4%, and in Italy, 9.8%. The increases shown corresponding period in November, duo principally to the normal increase In used car sales. Parts makers are busier. for those receiving benefit in Austria (20%), trade-unionists unemployed "Building remains at very depressed levels. November permits being In Czechoslovakia (32.9%),and number receiving benefit in France (78.4%) 70% less than a year ago. Year-end dullness prevails in the machine are on a far higher level. tool industry." When comparing unemployment in November 1931, with that in tho The Bank presents in the survey a study of gold movesame month In 1930 an even wider range of increase is disclosed. For the one-year period Austria's increase is lowest, or 15.1%, followed by Great ments in 1930 and 1931. Britain (16.8%), Poland (23.7%). Germany, (37.3%), Italy, (64.3%). Czechoslovakia (117.1%). and France (1.783.4%). in the order named. More Than Seasonal Declines Noted in Most Lines of Industry in Indiana During November. Most lines of industry in Indiana made more than the normal seasonal declines and retail trade failed to show any seasonal improvement during November, says the December issue of the "Indiana Business Review," issued by the Indianapolis office of the Indiana University Bureau of Business Research,and published by the Fletcher American National Bank of Indianapolis. The "Review" adds: Building Conditions in Philadelphia Federal Reserve District During November. The Philadelphia Federal Reserve Bank reports that "awards of contracts for building construction during November were about one-third of those let in October, which was a much sharper decline than usual. The Bank continues as follows in its "Business Review" of Jan. 1: All classes of construction, except factories, sustained marked losses In the value of contracts awarded, and the November volume was the lowest in many years. Awards in the first half of December decreased further and were less than one-half the volume of a year ago. The drop in building 38 permits in November was slightly more than seasonal; permits in November were only about one-fourth of those a year ago. Employment in building construction in Pennsylvania was 10% smaller and wage payments 11% less in November than October. The drop in payrolls varied from 10% in Philadelphia and Erie to 19% in Reading. Decreases in the number of employee-hours worked amounted to 11% in Philadelphia, 16% in Scranton, and 18% in Reading, showing largely seasonal curtailments In operations. Per Cent Change From Contracts Awarded In Selected Cities and District. Philadelphia Reading Scranton Camden Trenton Wilmington "All other" District, all cities Source: F. W. Dodge Corp. 11 Months 1931. 1930. 1926-1929 Average. 352,664,000 3,108,000 1,195,000 2,137,000 3,627,000 3,781,000 114,371.000 -55.4 +6.6 -67.5 -49.8 +2.9 -45.7 -33.0 71.3 -50.0 -71.6 -77.1 56.6 -45.1 -45.1 180,882,000 -41.7 57.6 The declines shown during November In reporting lines of wholesale trade in the Seventh District were about average for the period. Grocery sales declined 11%, hardware 18%, dry goods 12%, drugs 11%, shoes 20% and electrical supplies 8% from the preceding month. Differences from a year ago, as indicated in the table below, were smaller in all groups than in a similar comparison for October. In the year through November, grocery sales totaled 15%, hardware 26%, dry goods 25%, drugs 15%. shoes 25% and electrical supplies 34% smaller than in the same period of 1930. No tendency has been shown to expand stocks, and levels are well below those of a year ago. Ratios of accounts outstanding on Nov. 30 to net sales during the month were higher in the majority of groups than either a month previous or last year. WHOLESALE TRADE IN NOVEMBER 1931. Considerable Slackening Noted in Industrial Activity in Philadelphia Federal Reserve District in November. Industrial activity slackened considerably in November and early December, says the Federal Reserve Bank of Philadelphia in its Jan. 1 "Business Review." The Bank further says: Output of manufactures showed more than the usual seasonal decline from October to November. Production of anthracite fell off materially after showing a sharp gain in October, while that of bituminous coal increased slightly; in early December mining of anthracite increased while that of bituminous declined. The value of building permits and contracts decreased more than was to be expected. Retail trade in November failed to measure up to the volume of past years, but it was quite active in early December. Wholesale business continues seasonally quiet. Business in all major industries and trades showed marked declines in the first eleven months of this year as compared with the same period last year. Member banks report further declines in loans to customers, continuing the progress which has been in progress for many months. Rates on prime commercial loans have changed little. An Increase in bills discounted by the Reserve Bank during the month ending in the middle of December seems to have resulted chiefly from Treasury operations; currency demand was exceptionally quiet, giving little indication of the strong increase usual at this season. Manufacturing. Demand for manufactured products has fallen off as it usually does toward the end of the year. Unfilled orders for finished goods are smaller than a month ago and as compared with last year. Recessions in wholesale prices continued, although the decline was comparatively small. Stocks of finished merchandise at plants decreased from the preceding month; they were also smaller than in early December last year. The latest available national index shows that inventories of manufactured goods in October were the lowest in nine years, while those of raw materials were the largest for the same period. Factory employment In Pennsylvania declined less than 1%, while wage payments and operating time decreased 5% from October to November. In the country employment decreased 3% and payrolls 5%. Compared with November 1930, Pennsylvania factories employed 16% fewer workers and paid cut 31% less in wages. Similarly, national indexes showed a drop of 15% In factory employment and 25% in payrolls, indicating curtailment of operations. Productive activity in manufacturing declined 3% more than it usually does between October and November. This drop may be attributed chiefly to further curtailment of activity in metals, textiles, building materials and paper and printing. The preliminary index, at 71% of the 1923-25 average, was 20% lower than in November 1930. The sharpest declines from a year ago occurred in metal products, building materials, paper and printing, radio and musical instruments and transportation equipment. In the metal group all items showed declines in output in November except iron and steel casings, which registered gains in daily output. Activity in factories making automobile bodies and parts has been on the increase since the middle of the year, and in November reached the highest level since April last year. The gain In shipbuilding was not as large as was to be expected, while operations of plants making locomotives and cars and motor vehicles declined further. After reaching a peak in August and September, output of textile products fell off more than usual in the two following months, all lines sharing in the recession except knit underwear. Canning and preserving and output of ice cream measured up to seasonal volumes, even though the totals were smaller than in several years past; other lines in the food group registered declines during the month. Production of cigars held more than its ground, although November was the third smallest month since 1924. A decline of 11% in the output of shoes was somewhat smaller than Is customary for November; the drop in the country's shoe production was 15% from October to November. Activity in the leather tanning industry also declined seasonally. The hide market generally is quiet and prices show continued weakness. In the building materials group operations of plants making cement and paints and varnishes were more active than ordinarily was to be expected, while the output of brick and lumber and planing, mill products declined as usual. Production of explosives and oll and petroleum products showed rather exceptional gains. Electric power output was smaller In November than October, which is contrary to the usual seasonal tendency; it was also less than a year ago. The use of electrical energy by Industries declined slightly in November, and it was 10% below the quantity consumed a year ago. Sales at Wholesale and Retail in Seventh Federal Reserve District Less in November Than in October, According to Chicago Federal Reserve Bank. In its Dec. 31 "Business Conditions Report," the Federal Reserve Bank of Chicago reviews merchandising conditions In its district as follows: [VOL. 134. FINANCIAL CHRONICLE Per Cent Change From Same Month Last Year. Commodity. Groceries Hardware Dry goods Drugs Shoes Electrical supplies Net Sales. Stocks, -20.8 -27.2 -21.2 -15.8 -34.6 -36.5 -22.1 -12.8 -18.7 -10.2 -10.4 -18.6 Ratio of Accts. Out. Colstanding to Accts. Outstanding. lections. Net sates. -10.2 -17.3 -30.2 0.0 -31.3 -31.2 -23.6 -33.4 -24.6 -15.2 -12.8 -41.2 135.8 296.7 347.2 202.7 341.6 190.6 Department store trade in the Seventh District fell off 8% in November from the preceding month, following three successive months of increase, although daily average sales totaled 5% larger in the comparison; the decline compares with one of6% in the corresponding period last year. Sales by Detroit stores were only 3% smaller than in October, while those in Chicago, Milwaukee, Indianapolis and smaller cities of the district were less by 854, 934, 13 and 10%, respectively. The decline of 22% from a year ago brought sales for the year through November to 15% below the same period of 1930, as against a 13% recession shown for the first ten months of the year. Stocks on hand at the end of November averaged a little higher than a month previous, whereas a small gain Is usually recorded during the period; turnover so far in 1931 has been very slightly slower than In 1930. Total sales of shoes by reporting retail dealers and department stores declined in November, contrary to seasonal trend and although about half of the department stores recorded gains in the comparison with October. The dollar volume sold was 26% smaller than in the same month last year and for 1931 through November totaled 13% below the corresponding period of 1930. Stocks again declined, following a slight expansion shown In recent months. The recession of 16% from the preceding month in November furniture trade was somewhat greater than usual for the period, comparing with an average decline of 12% in the four preceding years; business done on the installment plan by dealers fell off 23% in the comparison. Total dollar volume sold by both dealers and department stores was 24% less than in November 1930, while Installment sales by dealers totaled 27% smaller. As was the case in other retail lines, stocks were reduced slightly, although increases had been shown in the past few months. Seventeen chains reporting to this bank and operating 2,604 units In November had sales totaling 11% smaller than in the preceding month and the same amount below a year ago. The number of units showed little change in either comparison, so that average sale per store declined by the same percentage as did aggregate sales. All individual lines, which include grocery, drug, five-and-ten-cent store, cigar, furniture, shoe, musical instrument, and men's clothing chains, recorded declines from both a month and a year previous. DEPARTMENT STORE TRADE IN NOVEMBERI931. Gocality. Chicago Detroit Indianapolis Milwaukee Other cities Seventh District Per Cent Change P.C.Change 11 Months November 1931 1931 from from same period November 1930. 1930. Ratio of November Collections to Accounts Outstanding Oct. 31. Net Sales. Stocks End of Month. Net Sales. 1931. 1930. --25.4 --23.0 --16.4 --16.7 ---20.1 --12.6 --21.4 --8.9 --8.6 -12.7 --18.3 --15.8 --9.7 --9.2 --12.4 27.7 32.6 41.1 31.6 35.1 41.3 32.2 316 -22.4 -13.9 -15.2 33.3 35.9 Industrial Employment Conditions in Chicago Federal • Reserve District-Moderate Decline Noted in Payrolls. The Federal Reserve Bank of Chicago, in its Dec. 31 "Business Conditions Report," states that "Employment in Seventh [Chicago] district industry was fractionally lower in November than a month earlier and payrolls declined moderately, as shown by data for 2,825 firms included in our survey. Average weekly earnings were 23'% lower in the total and nearly 4% less in manufacturing than in the preceding month." The Bank also says: The trend in the total of 10 manufacturing groups was not uniform throughout the district, as Michigan, influenced largely by the automobile and rubber industries, recorded increases of 6% in men and one-half of 1% In wages, while in the other States declines took place which more than offset these gains. The only group having larger employment and payrolls was vehicles, which reversed the sharp downward trend of the previous five months in number of men with a moderate gain, and added a fractional increase In payrolls to that of October; these gains apparently reflect assembly operations of a number of manufacturers on new models Rubber products firms, operating longer hours, reported considerably larger payrolls than In October. The declines In individual groups were largely seasonal and sharpest in the leather, stone, clay and glass, food, and wood products groups; fairly large reductions in payrolls accompanied by only slight loss In employees occurred in the textiles, chemicals and metal products groups. Paper and printing, which usually expands operations In November, had a fractional loss in employees and a larger one In their earnings. In nonmanufacturing employment, construction was seasonally lower and both construction and coal mining had smaller wage payments. At free employment offices registrations were smaller in November, probably because of increased activity on the part of relief agencies, and the ratio of applicants to jobs available declined in each of the four States. JAN. 2 1932.] FINANCIAL CHRONICLE REGISTRATION PER 100 POSITIONS AVAILABLE AT FREE EMPLOYMENT OFFICES. Month- Illinois. Indiana. 1931-November October 1930-November October 208 251 280 283 Iowa. 149 232 251 202 Wisconsin. 4 States. 351 503 281 331 225 249 210 178 225 275 263 251 EMPLOYMENT AND EARNINGS-SEVENTH FEDERAL RESERVE DISTRICT. Week of Nov. 15 1931. Industrial Group. No. of Number Reportof ing Wage Firms. Earners. Metals and products_a Vehicles Textiles and products Food and products Stone, clay and glass Wood products Chemical products Leather products Rubber products:is Paper and printing 744 144 162 364 150 301 102 81 8 324 Total manufg, 10 groups-MerchandisIng.c Public utilities Coal mining Construction 2,380 186 70 18 171 Total non-mnf., 4 groups_ -- Prot. IL onn0ne 445 9 5192 150,027 138,127 29,218 54,009 8,196 26,879 14,658 16,087 6,066 41,102 Per Cent Change from Oct. 15. Earnings. EarnWage Earners. legs. % % 52,907,000 3,874,000 446,000 1,271,000 179,000 426,000 372,000 227,000 138,000 1,052.000 -0.2 -5.8 +4.5 +0.6 -1.7 -9.0 -5.8 -3.8 -9.0 -10.8 -3.0 -8.8 -4.2 -1.2 -9.4 -18.9 -0.5 +7.1 -0.3 -3.3 484,167 510,892,000 757,000 31,247 2,861,000 87,472 5,142 99,000 8,381 222,000 132,242 $3,939,000 010 400 514 5221 At -0.1 +0.1 -0.3 -0.2 -8.7 -3.9 -0.6 +0.5 -3.4 -4.8 -0.8 -0.1 --02 -9 0 a Other than vehicles. b Michigan and Wisconsin. c Illinois and Wisconsin. Canadian Pulp and Paper Exports in November Valued at $11,815,397-Increase of $149,047 Over October, but Decrease of $1,558,211 from November 193011-Month Total $130,113,638. Canadian exports of pulp and paper in November were valued at $11,815,397, according to the report issued by the Canadian Pulp and Paper Association. We quote from the Montreal "Gazette" of Dec. 25, which continued: This was an increase of $149,047 over the previous month, but a decrease of $1,558,211 from November 1930, when exports totalled $13,373,608. Wood-pulp exports for the month were valued at $2,674.253 and exports of paper at $9,141,144 as compared with $2,644,278 and $9,022,072 respectively, in the month of October. Details for the various grades of pulp and paper are as follows: November 1931 PulpMechanical Sulphite bleached Sulphite unbleached Sulphate Screenings All other Tons. 12,881 27,164 10.424 4,600 907 140 PaperNewsprint Wrapping Books (owls.) Writing (owls.) All other 56,116 171,151 782 1,809 17 November 1930 Tons. 24,671 21,803 13,616 6,104 1,615 173 $ 699,185 1,468,410 619,895 370.749 26,512 13,484 2,674,253 67,982 3,198,235 8,801.532 67,889 14,795 171 256.757 173,149 841 4,645 9,746,067 87,880 37,206 $ 329,217 1,603,081 407,368 313,438 14,042 7,107 304.220 9,141,144 10,175,373 For the first eleven months of the year the exports of pulp and paper were valued at 5130.113.638. In the corresponding months of 1930 the value was $162,106,864 so that there has been a decrease this year of $31,993,226. Exports of wood-pulp in the period were valued at $27,662.241 while exports of paper amounted to $102,451,397 as compared with totals of $36,482,433 and $125,624,431 respectively in the corresponding eleven months of 1930. Details for the various grades are given below: PulpMechanical Sulphite bleached Sulphite unbleached Sulphate All other ParerNewsprint Wrapping Book (owls.) Writing (cats.) All other Eleven Months 1931. Eleven Months 1930. Tons. 145,147 242.331 114,998 73.369 16.126 Tons. 191,584 233,616 174.255 79.787 26,699 s 3,094,640 15,129,383 4,819,762 3,240.641 387,815 $ 5,512,843 16,883,975 8,595,739 4,755.110 734,766 591,971 26,672,241 705,941 36.482,433 1,846.408 8,977 23,141 1,317 98.944,063 819,808 191.243 12.174 4.484,109 2.105.516 12,393 37,971 2,364 120.811.386 1,298,622 350,166 19,698 3,144.559 102,451,397 125.624,431 Pulpwood exports for the first eleven months of this year were 906,697 cords, valued at $8,979,141, as compared with 1,266,198 cords valued at $12,856,340 in the corresponding months of last year. 39 production 39% less, shipments 41% less and orders 22% less than for the week in 1930; for hardwoods, 200 mills, production 28% below, shipments 6% below and orders 6% above the volume for the week a year ago. Lumber orders reported for the week ended Dec. 19 1931, by 553 softwood mills totaled 136,925,000 feet, or 30% above the production of the same mills. Shipments as reported for the same week were 16,935,000 feet, or 25% above production. Production was 13,542,000 feet. Reports from 237 hardwood mills give new business as 17,191,000 feet, or 27% above production. Shipments as reported for the same week were 16,935,000 feet, or 25% above production. Production was 13,542,000 feet. The Association's statement continues: nfilled Orders. Reports from 479 softwood mills give unfilled orders of 494.078,000 feet, on Dec. 19 1931, or the equivalent of 10 days' production. This is based upon production of latest calendar year-300-day year-and may be compared with unfilled orders of 465 softwood mills on Dec. 20 1930, of 736,141.000 feet, the equivalent of 15 days' production. The 400 identical softwood mills report unfilled orders as 446,569.000 feet on Dec. 19 1931, the equivalent of 10 days' average production, as compared with 721,957,000 feet, the equivalent of 16 days' average production on similar date a year ago. Last week's production of 434 identical softwood mills was 98,401,000 feet, and a year ago it was 160.608.000 feet; shipments were respectively 103,367,000 feet and 176,477.000: and orders received 129,952,000 feet and 166.127,000 feet. In the case of hardwoods, 200 identical mills reported production last week and a year ago 12,289,000 feet and 17,132.000; shipments 15,302,000 feet and 16,289.000; and orders 15,300.000 feet and 14,499,000 feet. West Coast Movement. The West Coast Lumbermen's Association wired from Seattle the foliovii ing new business, shipments and unfilled orders for 224 M111/1 reporting for the week ended Dec. 19: NEW BUSINESS. UNSHIPPED ORDERS. SHIPMENTS. Feet. Feet. Fed. Domestic cargo Domestic cargo Coastwise and delivery- -_. 37,789,000 delivery _ - _ -130.225,000 Intercoastal _ 25.994.000 Export 16.695,000 Foreign 77.157,000 Export 10,191,000 Rail 19.124,000 Rail 53,635,000 Rail 18.930.000 Local 5.571,000 Local 5,571,000 Total 79.180,000 Total 261,016,000 Total 60.687,000 Production for the week was 65.531,000 feet. For the year to Dec. 12. 148 identical mills reported orders 0.2% above production, and shipments were 4.7% above production. The same number of mills showed a decrease in inventories of 10.5% on Dec. 12, as compared with Jan. 11931. Southern Pine Reports. The Southern Pine Association reported from New Orleans that for 108 mills reporting, shipments were 18% below production, and orders 16% below production and 3% above shipments. New business taken during the week amounted to 17,640.000 feet, (previous week 19,089.000 at 120 mills); shipments 17,094,000 feet, (previous week 20.496,000); and production 20,891.000 feet, (previous week 23,730,000). Orders on hand at the end of the week at 95 mills were 56,448,000 feet. The 100 Identical mills reported a decrease in production of 37%, and in new business a decrease of35%,as compared with the same week a year ago. The Western Pine Association, of Portland. Ore., reported production from 122 mills as 12,926,000 feet, shipments 26.863,000 and new business 32,296,000 feet. The 87 identical mills reported production 59% less and orders 24% less than for the same week last year. The Northern Pine Manufacturers of Minneapolis, Minn., reported no production from seven mills, shipments 1,113,000 feet and new business 2,827,000 feet. The same number of mills reported an increase of 173% In orders, compared with the same week of 1930. The Northern Hemlock and Hardwood Manufacturers Association, of Oshkosh, Wis., reported production from 18 mills as 1,010.000 feet, shipments 744.000 and orders 864.000. The 17 identical mills reported production 43% less and new business 22% more than for the same week last year. The North Carolina Pine Association, of Norfolk. Va., reported production from 74 mills as 4,777,000 feet, shipments 5,316.000 and new business 4,178,000. The 32 identical mills reported a 18% decrease in production and a 22% increase in orders, compared with the corresponding week of 1930. Hardwood Reports. The Hardwood Manufacturers Institute, of Memphis, Tenn., reported production from 219 mills as 13.023,000 feet. shipments 15.414,000 and new business 15,468,000. The 183 identical mills reported production 23% less and orders 1% more than for the same week a year ago. The Northern Hemlock and Hardwood Manufacturers Association, of Oshkosh, Wis., reported production from 18 mills as 519,000 feet, shipments 1,521,000 and orders 1,723.000. The 17 identical mills reported a 72% decrease in production and a 68% increase in orders, compared with he same week of 1930. West Coast Lumbermen's Association Weekly Report. According to the West Coast Lumbermen's Association, reports from 224 mills show that for the week ended Dec. 19 1931,65,531,238 feet of lumber were produced; 79,179,676 Orders Exceed Limited Lumber Production. feet ordered and 60;686,853 feet shipped. This compares With production at a low level, lumber orders for the with 67,882,632 feet produced, 72,932,406 feet ordered and week ended Dec. 19 1931 exceeded the cut by approximately 72,155,641 feet shipped during the preceding week. The 30%, it is indicated in telegraphic reports from 772 leading Association's statement follows: hardwood and softwood mills to the National Lumber COMPARISON OF CURRENT AND PAST PRODUCTION AND WEEKLY OPERATING CAPACITY (343 IDENTICAL MILLS). Manufacturers Association. The out of these mills amounted (All mills reporting production for 1930 and 1931 to date.) to 118,677,000 feet. Shipments were 8% above this figure. Actual production week ended Dec. 19 1931 76.744,958 feet A week earlier, 12 mills reported both orders and shipments Average weekly production, 50 weeks ended Dec. 19 1931 111,884,825 feet 17% above a production of 125,803,000 feet. Comparison Average weekly production during 1930 157,124,745 feet Average weekly production last three years 194,548,427 feet by identical mill figures for the latest week with the equiva- x Weekly operating capacity 297,182,652 feet x Weekly operating capacity Is based on average hourly production the 12 lent period a year ago shows-for softwoods, 434 mills, last months preceding mill check and the normal number of operating hoursfor per weeks 40 FINANCIAL CHRONICLE WEEKLY REPORT OF PRODUCTION, ORDERS AND SHIPMENTS. 224 Mills report for week ended Dec. 19 1931. (All mills reporting production, orders and shipments for last week.) Production 65.531.238 feet (100%) Orders 79,179,676 feet (20.83% over production) Shipments 60,686,853 feet( 7.39% under production) WEEKLY COMPARISON (IN FEET) FOR 224 IDENTICAL MILLS-1931. (All mills whose reports of production, orders and shipments are complete for the last four weeks.) Weeks EndedDee. 5. Nov. 28. Dec. 12. Production 67.882.632 67,488.504 61.791.288 65,531.238 Orders (100%) 78.806.825 68,073,439 72.932,406 79.179.676 Rail (24%) 19.531.537 22.424.862 19.564,805 19,124,491 Domestic cargo (48%)_-- _ 37.789.072 34,212,545 32,231.270 34,143,121 Export (21%) 10,018.977 14.047.920 13.191.369 16.695,360 6.291.655 Local (7%) 8.121,458 6.033,111 5.570,753 62.331,449 64.527.936 Shipments (100%) 72,155.641 60.686,853 Rail (31%) 19,854,811 20.576.913 21.373.205 18,930.270 25.217.595 24,047,945 30,305.522 Domestic cargo (43%)_ _ _. 25.994.456 10.967.388 Export (17%) 11,781.620 14.443.803 10,191.374 6.291.655 8,121.458 Local (9%) 6,033.111 5,570,753 Unfilled order (100%) 261.016.200 243,645.737 244.690.408 233,629.179 54.676.521 Rail (21%) 56.135.424 53.894.023 53.634.637 Domestic cargo (50%) 130.224.619 118,967.340 115,939.436 108,336.980 Export (29%) 70.615,678 70,784,374 72,615,548 77.156.944 191 IDENTICAL MILLS. (All mills whose reports of production. orders and shipments are complete for 1930 and 1931 to date.) Acerags 50 Average 50 Weeks Ended Weeks Ended Week Ended Dec. 20 '30. Dec. 19 '31. Dec. 19 '31. 130.678.231 Production (feet) 63.017.039 93.292.648 125,903,854 Orders (feet) 93,773,676 76,779,310 128,776.258 97.509,993 Shipments (feet) 58,170.744 DOMESTIC CARGO DISTRIBUTION WEEK ENDED DEC.19 1931 (96 mills). Orders on Orders CancelHand Begin'g Week Received. lotion Adjustments. Dec. 19 '31. Washington dc Oregon (89 Affils)Feet. Feet. California (61 mills)---- 45,853,012 6,853.233 Atlantic Coast (77 mills) 58,798,658 26,838,839 Miscellaneous (14 mills). 5,529,007 917,000 Total Wash.& Oregon 110,180,677 34,609,072 Reporting domestic cargo only (2 m111s) 1,499,663 685,000 Totals British Col.(7 34111s)California (3 mills) Atlantic Coast (7 mills)_ Miscellaneous(3 mills)__ Totals Brit. Columbia Reporting domestic cargo only Totals 111,680.340 35,294,072 Unfilled Orders Week Ended Dec. 19 '31. Feet. Feet. Feet. 410,760 11,008,892 41,286.593 176,577 13,083.600 72,377.320 +90.000 999,418 5,536,589 497,337 25,091,910 119,200,502 329,546 1,855.117 497,337 25,421,456 121,055,619 3.703.000 95,000 3,030.000 2,360,000 554,000 573,000 7,287,000 2,455.000 7,287,000 2.455,000 Tntala rinmmtle ritrun 1113 067 WTI 27 740 072 Shipmeals. 3,798,000 4.817.000 554.000 573,000 9,169.000 573,000 9,169,000 407 2.47 25 004 66.1 1•111 994 610 Increase Shown in Midwest Distribution of Automobiles in Chicago Federal Reserve DistrictFurther Decline in November in Orders Booked by Furniture Manufacturers. The introduction of new models of a medium-priced car, says the Chicago Federal Reserve Bank, effected the increase shown in November over the preceding month in Midwest distribution of automobiles at wholesale. Retail sales, on the other hand, fell off as is usual in November, though showing somewhat smaller differences from the corresponding period of 1930 than in a similar comparison for October. The Bank, in its Dec. 31 "Business Conditions Report," adds: Average stocks of new cars on hand the end of November were almost 40% smaller than on Nov. 30 last year, having declined about 20% from the level of a month previous. Used car sales in November again were somewhat less than in the preceding month, while stocks increased further -their value to a greater degree than the volume, the former also being slightly greater than a year ago. The ratio of 55%, representing the proportion in November of deferred payment sales to total sales of 26 retail dealers, compared with 59% for October and 44% for November a year ago. MIDWEST DISTRIBUTION OF AUTOMOBILES. Changes in November 1931 from Prev.ous Months. Per Cent Change from New cars: WholesaleNumber sold Value RetailNumber sold Value On hand Nov.30-Number Value Used cars: Number sold &docile on handNumber Value Oct. 1931. Nov. 1930. Cornpanied Included. +36.2 +77.3 -18.4 -21.7 22 22 --2I.3 --17.7 -21.4 -18.1 50 60 --18.7 --17.8 -35.0 -39.0 62 52 -11.0 -18.9 52 +4.4 +6.9 -7.1 +1.0 52 52 The Bank reports furniture bookings as follows: Furniture. New orders booked by Seventh district furniture manufacturers reporting to this Bank fell off in November, though somewhat less than in the same period a year ago-the current decline of 12% comparing with one of 17% in November 1930. Shipments, also, declined less than in the corresponding period a year ago, being only 18% under those of a month previous, whereas November 1930 shipments were 35% under the preceding month. Cancellations were low, and unfilled orders outstanding at the close of November were in approximately the same ratio to current orders booked as a month previous-777r. In comparison with November 1930, orders booked and shipments were alike smaller by 33%, and unfilled [VOL. 134. orders less by 13%. The rate of operations maintained during the month under review approximated 45% of capacity, one point under October and six points under that obtaining during November a year ago. Commodity Prices in Kansas City Federal Reserve District Continued to Decline in NovemberWholesale and Retail Trade Conditions. In summarizing business conditions in its District, the Federal Reserve Bank of Kansas City in its Jan. 1 1932 "Monthly Review" says that the prices of many Tenth District (Kansas City) commodities continued to decline in November. Corn and oats, says the Bank, closed the month slightly higher, but wheat, after reaching 60 cents per bushel on Nov. 9, a new high for the season, declined with a net loss of 6 cents per bushel for the month, but 11 cents per bushel above the record low of Oct. 5. The Bank continues as follows: Livestock values were lower, with sheep and lambs the lowest in 20 years, and hog prices reaching the lowest level since 1899. Crude oil advanced 15 cents per barrel, but gasoline was lower and zinc ore and lead ore declined. Prices of flour, millfeeds, eggs, poultry and butter also declined. The combined value of crops harvested in this District in 1931, as estimated by the United States Department of Agriculture and based on Dec. 1 prices, declined 28.5% as compared to 1930 and 51.4% as compared to 1929. Heavy rainfall in the eastern part of the District delayed corn shucking and marketing and fall plowing. Snows in the range areas caused some shrink and loss of livestock, but relieved water shortages in some localities. Wheat fields in eastern and central Kansas received an excess of moisture, but a deficiency of subsoil moisture exists in the western third of that State. Weather conditions were more favorable for fall trade in November than in October and the decline of 17.9% in dollar sales during the month, as compared to November last year, was somewhat less than reported for the two preceding months. Wholesale trade was seasonally dull and the dollar volume of sales was 24.3% under a year ago. Crude oil production was larger in November than in October this year or November 1930. Flour mills produced more flour in November than in the corresponding month last year. There was very little building activity during November. As to retail and wholesale trade conditions, the Bank says: November sales of 35 department stores located in cities of this District were 5.4% smaller in dollar volume than in the preceding month. This decrease compares with 8.7% reported for the same period last year, but was somewhat heavier than the five-year average. As compared to November 1930, sales declined 17.9%, but the comparison was slightly more favorable than was reported for the two preceding months. Cumulative sales for the calendar year to December 1 were 12.3% below last year's totals for the like period. Weather conditions in Noberaber and the forepart of December were more favorable for seasonal trade. There was the usual slight increase in merchandise stocks during the month, but inventories of November 30 were 14.7% smaller than one year earlier. The stock turnover for the 11 months this year was at the rate of 214 times, and equal to that reported for the same period last year. Collection in November were equal to 36.8% of accounts outstanding October 31 as compared to the same percentage for October, and 39.9% for November 1930. Wholesale Trade. There was a seasonal lull in wholesale trade in November as compared to October, although wholesalers of drygoods reported their dollar sales as 0.3% larger for the month. Total dollar sales of five reporting wholesale lines combined (drygoods, groceries, hardware, furniture, and drugs) were 11.8% smaller in November than in October. and 24.3% smaller than in November 1930. All lines reported their sales for November this year as substantially smaller than in the same month last year. With the approach of the inventory season, combined stocks declined 6.3% in November and at the close of the month were 10.3% under a year ago. Decreases for the month and the year were reported by all lines, except hardware,stocks of which showed a slight increase for November. Latest Crop Figures for Dominion of Canada. The Dominion Bureau of Statistics on Dec. 15 issued a bulletin giving, by Provinces, a preliminary estimate of the value of the field crops of 1931, as compared with the values for 1929 and 1930. The values per unit assigned to each crop represent average prices received by farmers at the point of production for the 1931 crop up to the end of November, and they have been determined by the Bureau after consultation with the Provincial Departments of Agriculture. The estimates of the Bureau are based on monthly farm price schedules, distributed to farmers throughout Canada. It should be observed that these estimates are subject to revision and that the values attached to many of the crops, e.g., mixed grains, potatoes, roots, &c., do not represent actual sales, but are rather the estimated value of products consumed chiefly on the farm. For all Canada, the total value of the principal field crops of 1931 is now estimated at $431,251,000, as compared with $631.592,900 in 1930 and $948,981,400 in 1929. The total for 1931 Is composed of the following items, with the 1930 figures within brackets: Wheat, $108.786,000 ($174,792.000); oats, $76,461,000 ($102,919,000); barley, $16,015,000 ($27,254,000); rye, $1,443,000 ($4,401,500); peas, $1,798,000 ($3,487,000); beans, $889,000 ($3,261,400); buckwheat, $3,430.000 ($7,124.000): mixed grains. $12,081,000 ($18,435,000): flaxseed, $2,248,000 ($4.194,000); corn tor husking. $2,335,000 ($5,054,000); potatoes, $23,408,000 ($39,858,000); turnips, &c., $10,643,000 ($18,180,000); hay and clover. $113,961,000 (3161,122.000); alfalfa, $19,015,000 ($19,877,000);fodder corn, $13,678,000 ($17,142,000);grain hay,$22,130,000 ($21,254,000);sugar beets,$2,930,000 ($3,238,000). By Provinces, the total values are, in order, as follows, the values for 1930 and 1929 being given within brackets: Ontario, $138,547,000 ($179.919,000. $241,778,000): Alberta, $92,588,000 ($95,828,400, $157,254.000); FINANCIAL CHRONICLE JAN. 2 1932.] Quebec, $71,614,000 ($120,366,000, $153,664,000); Saskatchewan, $62,545,000 ($120,215,000, $235,248,000); Manitoba, $24,132,000 ($52,463.000,$78,919,000); Brit. Columbia,$13,753,000 ($16,628,000,$20,398.000); New Brunswick.$10,787,000($18,554,000,$23,835,000); Nova Scotia,$10,338,000 ($16,646,500. $20,945,000); Prince Edward Island, $6,947,000 ($10,973,000,$16,940.400)• For the three Prairie Provinces,the total values of the five principal grains are estimated as follows, with last year's figures within brackets: Wheat, $99,090,000 ($157,378,000); oats, $33,170,000 ($41,135,000): barley, $9,616,000 ($16,019,000); rye, $955,000 (33,557,000); flaxseed, $2,121,000 ($4,006,000). The average unit prices reported for the various crops of 1931 for all Canada are as follows, with comparative figures for 1930 within brackets: Cents per bushel-Wheat, 37 (44); oats, 23 (24): barley, 24 (20); rye, 25 (30): peas, $1.03 ($1.47); beans, 75 ($2.37); buckwheat, 50 (65); mixed aales. 31 (42): flaxseed, 79 (93); corn for husking, 41 (87). Cents per cwt.-Potatoes, 43 (83); turnips, &c., 26 (44). Dollars per ton-Hay and clover, $7.81 ($9.83); alfalfa, $10.19 ($12.12); fodder corn, $3.98 ($4.93): grain hay, $6.13 ($6.73); sugar beets, $5.81 ($6.87). 1929. Average Price. 1931. 1930. Average Price. Total Value. 8174,792,000 102,919,000 27.254.000 4,401,500 3,487,000 3,261,400 7,124.000 18,435,000 4,194,000 5,054,000 39,858.000 18,180,000 161,122.000 19,877,000 17,142,000 21,254,000 3,238,000 Total Value. 6006.eiciciciocioc;ci4c;c0 . ea $1.05 8319,715,000 0.59 168,017,000 0.59 60,505,000 0.84 11.095,000 2.06 4.079.400 3.30 4,920,000 0.94 9.867,000 0.76 27,227,000 2.38 4,898,000 1.06 5,469,000 1.59 63,372,000 0.53 19,062,000 11.65 184,528,000 12.63 23,183,000 4.59 15,265.000 12.05 25,287,000 6.85 2,492,000 00V-t-Nbt-MMNMegtV1, No.1.00VM.too.Olsoc, ,CICIN.W. I, CanadaWheat Oats Barley Rye Peas Beans Buckwheat Mixed grains Flaxseed Corn for husking Potatoes Turnips, &e Hay and clover Alfalfa Fodder corn Crain hay Sugar beets .W00.,0W.0.001W04.W.4 I Total Value. Average Price CnOW0.40000000.000S Field Crops. 8108,786,000 76.461,000 16,015,000 1,443,000 1,798,000 889,000 3,430,000 12,081.000 2,248,000 2,335,000 23.408,000 10,643,000 113,961,000 19,015,000 13.678,000 22,130,000 2,930.000 41 would indicate that 1932 will see a distinct improvement for the persons engaged in these phases of the cocoa industty. President McKee's annual review and forecast continues: It is pleasing to report an increase in the volume of trading on the New Approximately 400,000 tons, which is York Cocoa Exchange for 1931 about 80% of the world's annual production, changed hands on the Exchange. The decline in values of cocoa, which amounted to about 2Hc. a pound for the year, was chiefly the result of the depressed conditions outside of the cocoa industry. Consumption, which for the past few years has been running on an even keel with production, is reported by leading statisticians to have overlapped production during 1931, thus cutting down what was already an abnormally small carryover. To-day the world's surplus is not in excess of 13i months world consumption. The prevailing low price will eventually result in automatic reduction of crops in many producing countries. In normal times such an excellent statistical structure would be the basis for substantial market strength. During 1931 cocoa had every requisite for a favorable movement, but lacked the ability to move against the prevailing trend in world affairs. Any return of confidence on the part of cocoa merchants throughout the world would undoubtedly cause the sudden disappearance of the small world surplus. These men would be following the policy of normal years, namely that of "carrying" the crop carryover. With the disappearance of the surplus into dealer's warehouses, consumers may find themselves in the position of "reaching" for cocoa. which will be quite different from the situation as we have viewed it during the past two years when cocoa consumers took a logical advantage of a "buyer's market." Annual Review and Forecast of New York Coffee and Sugar Exchange-Sugar Market Influenced by Pool Activities-Chadbourne Plan Failed to Improve Prices-World Consumption of Coffee at Record Figures-Destruction of Coffee Surplus Supplies in Brazil. Referring to the Chadbourne sugar restriction plan, and Total field crone ____ 8948.981.400 ____ 3631.592.900 ____ 3431.251.000 its failure to improve prices, H. H.Pike Jr., President of the Note.-Average prices are per bushel for grain crops, per cwt.for potatoes, turnips. New York Coffee and Sugar Exchange, Inc., states in his &e., and per ton for hay, alfalfa, fodder corn and sugar beets (cwt.-100 lbs. and annual review and forecast, that "it is interesting to note ton-2,000 lbs.). that several of the countries in the Chadbourne agreement Toledo Milk Price Reduced. reduced more than they agreed to reduce, indicating that The following from Toledo is from the "Wall Street we had almost reached the point where the solution had been arrived at through voluntary contraction of proJournal" of Dec. 21: Retail milk prices here have been reduced a cent a quart to 10 cents duction." by all independent dealers in a milk war here. The Great Atlantic & As to the coffee market Mr. Pike says,"we find that the Pacific Tea Co. and the Kroger Baking Co. have followed with a reducworld consumption reached record figures for the crop-year tion to 9 cents a quart. ending June 301931," We give herewith Mr. Pike's annual review: Milk Dealers in Elgin, Ill. Cut Milk Price Again. cautious attitude of buyers, which has brought about deflation in Under date of Dee. 29 the Chicago Bureau of the "Wall allThe property, did not spare coffee and sugar during 1931. Street Journal" said: The early part of the year saw a steady sugar market, with a background Retail dealers of Elgin, Ill., have made another cut of one cent a quart in price of milk, effective Jan. 1. New rate for quarts will be 10 cents with pints remaining unchanged at 6 cents. Extra Shift Employed by Commercial Shearing and Stamping Co. Youngstown, Ohio, advices to the New York "Times", Dec.30, said: The Commercial Shearing and Stamping Co. is working extra shifts on new business and in addition is turning out 17,000 tons of steel lining for the Boston vehicular tunnel. The company furnished similar material for the Windsor-Detroit tunnel. . About 1,000 Additional Workers Employed by Lycoming Manufacturing Co. About 1,000 employees have been added to the payroll of the Lycoming Manufacturing Co., division of the Cord Corporation, within the past ten days, says the New York "Times" of Dec. 19, which adds: About 55% of the new workers have been added to the foundry division, while the remainder have been placed in the machine shops and assembly departments. Orders on hand are about 20% ahead of last year. Licensed Officers of Freight Ship Volunteer to Accept 10% Reduction in Wages. According to the New York "Times" of Dec. 23, the licensed officers of the American Export freight ship Exarch notified Henry Herberman, President of the line, Dec. 22 that they would willingly accept a wage reduction of 10% "in view of the general depression with which business is faced." The offer came as a surprise. Mr. Herberman has not lowered the salaries of his men and has continued to operate twenty-nine ships in the Mediterranean and Black Sea service. Nothing has been heard from the men of the other ships, he said. Improvement in Cocoa Industry in 1932 Looked for by President McKee of New York Cocoa ExchangeIncreased Volume of Trading on Exchange in 1931. According to Howard T. McKee, President of the New York;;Cocoa Exchange, an analysis of conditions surrounding the production, marketing and consumption of cocoa beans of hopefulness generated by the Chadbourne Plan. This agreement,signed on May 9 this year by seven of the principal sugar exporting countries of the world-Cuba, Java, Czechoslovakia, Germany, Belgium, Poland and Hungary, and just recently jointed by Peru-contemplated a strict limitation of exports by the signatory nations over a period of five years. It further provided for the segregation of present surpluses and the adjustment of production during the five-year period to permit the release of the segregated stocks and to prevent the building-up of any further excess. The Plan has failed to improve prices, partly because of the increased production of non-exporting countries and partly because of reduced world consumption and distribution. As is invariably the case with attempts at artificial regulation, the buying public, whether for consumption, for stock, or for speculative purposes, sat back in the traces when the control started and left the producer with additional stocks to carry. The solution to the sugar problem will be at hand when either or both of two things occur. The first and certainly the more favorable is a stimulation of world sugar consumption. This is one of the functions of the International Sugar Council created by the Chadbourne Plan, and their work to lift sugar consumption up to the level of production may eventually well prove to be of more lasting benefit than their efforts to lower production to the basis of present distribution. Failing in this, the undesirable alternative can only be that some producers somewhere must discontinue producing. This itself may be brought about by the Chadbourne Plan, but there are signs that such a reduction is coming, Chadbourne Plan or no. It is interesting to note that several of the countries in the Chadbourne Agreement reduced more than they agreed to reduce, indicating that we had almost reached the point where the solution bad been arrived at through voluntary contraction of production. The sugar market during the year was considerably influenced by pool activities. One pool was formed to receive tenders ofsugar on the Exchange and actually did acquire some 80,000 tons in this manner during July and September. Subsequently holders of 700,000 tons of Cuban sugar formed a pool to sell to United States refiners, but this organization has now been dissolved. As the year draws to a close, Exchange quotations for sugar have established new all time low levels for active months. Turning to the coffee market, we find that the world consumption reached record figures for the crop year ending June 30 1931. The total consumption, as shown by the deliveries, amounted to 25,1 8,175 bags, compared with 23,552,834 bags for the previous crop year. As the end of the year approaches, prices show a moderate decline compared with values at the beginning of the year. Aside from general conditions, this may be attributed to the lack of confidence in the maintenanc of prices, due to the huge over-supplies in existence at the present time. Stocks in the interior warehouses in Sao Paulo,on November 30,amounted to 24,576,000 bags, a record figure. Receipts of the current crop for five months amounted to 11,911,350 bags, compared with receipts two years ago of 11,247,798 bags, when the crop reached a record-breaking total of 21,215,605 bags. In order to cope with the problems engendered by the huge over-production and tremendous stocks, the Brazilians have decided to destroy the surplus supplies. To date,a total of 2,987,000 bags have been disposed of, either by burning or by dumping into the sea. Plans have been made to destroy coffee hereafter at the rate of 1,000,000 bags monthly, the funds to pay for the coffee being provided by an export tax. Brazilians, naturally, expect that the consumer will pay the tax through higher prices to be obtained for the coffee, but the fact is that a part of the burden is 42 FINANCIAL CHRONICLE (VOL. 134. being shared by the Brazilians, because present prices do not reflect the or Brussels agreement as binding because all producers did not attend the viva full advance necessary to cover the charge. conference. This year a new molasses contract was started on the Exchange. This contract has been ofsome assistance to the trade, but has not as yet reached Cuban Sugar Statistics. the point of real activity. In both coffee and sugar, two of the world's largest and most interesting The following from Havana is from the "Wall Street schemes for artifically bringing equilibrium back to supply and demand Journal" of Dec. 8: are being tried. There has never been a plan for limitation of production Cuban sugar exported from Jan. 1 to Nov. 28 aggregated 2.457,892 long so ambitious, nor with so many participants, as the Chadbourne Plan. tons, of which 1,877,488 went to the United States, and 580,404 to other Similarly, in coffee, history knows no such contemplated wholesale de- countries. This compares with 3,081,002 tons exported in the like period struction of merchandise—another mtehod, but the same end in view. of 1930, of which 2,097,602 went to the United States and 989,400 to other The whole world will be awaiting with intense interest the outcome of these countries. Available stock in Cuba on Nov. 28 1931, was 956,503 tons two efforts. compared with 420,290 on like date of 1930. Naturally, with regulated markets, the adverse financial and economic situation prevailing, and an increased tariff hindrance on sugar, trading volume on the New York Coffee and Sugar Exchange, Inc. this year has Cotton Trade Review and Outlook by Philip B. Weld, suffered. The Exchange does look forward with confidence, believing President New York Cotton Exchange—Resistance that the coming year will be one of greatly increased public interest in commodities generally, and in sugar and coffee in particular. The trade of Cotton to Depressing Influences Ascribed to now generally believes that the seed is planted and growing which will Its Selling Below Production Costs—Hopeful View ultimately give remunerative prices to those producing these two important as to Future. articles. International Sugar Council in Paris Adjourns Until January—Dutch and Cuban Views Still Unreconciled. The International Sugar Council, after four days of negotiations in Paris to readjust the Chadbourne plan to regulate world sugar production, adjourned on Dec. 17 until early in January. A cablegram to the New York "Times" on Dec. 17 added: The temporary half in the discussions came about when the Cuban delegation asked the Dutch group to-day for figures on next year's plantings and plans for preventing the accumulation of a huge surplus of Javanese sugar. When the Dutch producers said these figures were not then available but that they would provide them at the earliest possible moment, It was agreed to postpone decisive action for two or three weeks., :r tc; As had been forecast, the chief struggles have been between the Cuban and Dutch producers. Since the original agreement was reached last May, world consumption of sugar has decreased, surpluses have mounted and the price has dropped to the lowest point yet reached. Java is blamed for the increase of crops and the falling off of markets in India and China for the surplus, which promises to be about 1.200.000 tons by April 1932. Says Jam Must Not Cut Cane. Cuba maintains, however, that under the terms of the Chadbourne contract Java is required to leave the cane in its fields uncut if the extent of ths rurplus at the beginning of the harvest year is excessive, which they maintain it now promises to be. Java, on the other hand, maintains that the restriction provisions of the Chadbourne agreement cover only plantings for future crops, that Is to say, the crop to be harvested in the Spring of 1933, since, according to the Javanese system, contracts for fields to be sown must be made fourteen months in advance. The whole question, therefore, has resolved itself into one of interpretation of the contract, which is only a gentlemen's agreement and not legally binding. When the matter was put up to the council to-day, the European members sustained Java. Cubans Firm in Their Stand. The Cubans are maintaining a firm stand, although bowing to the will of the majority of the council on the matter of interpreting the contract. They say the conflict Is a mere matter of words, which is unimportant compared with the substance of the agreement which holds that surpluses must be reduced. While waiving their contention as to purely verbll interpretation, they are insistent on knowing Java's plans before making their own plans for next year's crops. The Cuban delegation, therefore, will remain in Europe until the next meeting of the council. The council's statement to-night, referring to restrictions on production, said: "The negotiations on this point were conducted with all cordiality and entire agreement by all parties." The expectation hero is that a satisfactory agreement will be reached In January. since it is known the Dutch producers had made plans long before the conference to cut next year's crops heavily. Members of the Dutch delegation here, however, withheld confirmation on this point or Comment on any phase of the council's negotiations. Labor Unions in Cuba Join Sugar Planters to Oppose Restriction of Coming Crop. From Havana Dec. 12 a cablegram to the New York "Times" said: Representatives of the National Union Labor Federation, the Railroad Brotherhood of the island and the maritime unions of the cities of Santiago, Clenfugos, Matanzas and Havana unanimously resolved at a meeting here to-day to join the cane planters in their fight against restriction of the coming sugar crop. The Cuban planters are greatly handicapped by their inability to use the press in their campaign against the Chadbourne plans, since orders were recently issued for the press censors to delineate all such propaganda, but they are obtaining the support of many commercial and labor organizations throughout the island. Notwithstanding the fact that an international sugar conference is scheduled to open in Paris Monday, little information concerning this matter of vital interest to Cuba is appearing in the local Spanish press. The only thing seen is comment on Java's possible attitude in the conference. In an article made available for publication Dec. 31, Philip B. Weld, President of the New York Cotton Exchange, presents the following cotton trade review of the past year, and the outlook as to conditions with the inception of the New Year: The year of 1931 is drawing to a close with cotton prices about 35% below the level at which they stood at the end of 1930. As this article is being written (Dec. 18),future contracts on the New York Cotton Exchange range from 6.24 cents for the nearby January position to 7.05 for the distant October contract, compared with a range of 9.80 to 10.61 a year ago. The average price of middling spot cotton at ten Southern markets is now 5.74 against 9.02 at the close of last year. This shrinkage in values is obviously the consequence of the production of the second largest crop that the United States has ever grown, coming on top of a large surplus from previous seasons, and seeking buyers in the midst of the greatest industrial depression in history. The significant feature of the situation is the fact that the decline has been so small. Without excessive production in many crops, the average decline in prices of farm products as a whole has been about 26%. It is most gratifying that cotton, under prevailing conditions, has fallen only 9% more than farm products as a group. One explanation of the resistance of cotton to depressing influences is the recognition that it is selling well below production costs, as measured by bare living conditions of growers and the advances required to finance the crop. It is true that cotton production costa have been much reduced, and the living costs of growers, as of other classes of workers, are much lower than they were two or three years ago; also, returns to growers this year have been greater than the low price of the staple would suggest, because of the exceptionally high yields per acre. But, with full allowance for all of these factors, it is evident that cotton growers cannot maintain themselves and make ends meet with cotton at 53j cents a pound at central markets. The result is bound to be acreage reduction this coming year. Another reason for the stubbornness of the decline in cotton, and the steadiness of cotton prices in recent weeks, has been the widespread holding movement by growers and other first hands since the new crop began to move. This has been one of the greatest holding movements ever seen. It is sound and logical, for it is folly to sell, unnecessarily, an essential commodity at a price below that at which it can be replaced. It is to be expected that this movement will continue to have a price-supporting effect, for, at these prices, forced buying will doubtless equal forced selling. One could recite some very depressing statistics of phenomenally low consumption during the past year, and of abnormally large stocks at present. It might be pointed out, for example, that the world used only about 11.500,000 bales of American cotton, but produced about 16,700.000 bales In 1931. It might be shown that the world is ending 1931 with about 20.700,000 bales of American cotton, compared with 16.500,000 a year ago, and 13,200,000 two years ago. But,from a market standpoint, these facts are history, and the market is interested in history only to the extent that it serves as a basis for foreseeing the future. The great world stock of American cotton has, for the most part, found a comfortable resting place, at least for the time being. It is being held by the Farm Board, the Cooperatives, a host of first hands, and thousands of people around the world who have taken advantage of the facilities offered by the futures exchanges and are carrying part of the excess supplies in the form of future contracts. The trade is no longer interested in statistics of present supplies—it knows them by heart, and it knows that prices have already fallen because of the facts disclosed by them. It is now watching keenly the figures on the movement of cotton into mills, consumption by spinners and returns on the later foreign crops. It has its ear to the ground for the first intimations of next year's acreage and of the number of weevils that will survive this winter and breed the army of pests which, given pro weevil weather conditions, would attack the new crop. To be sure, the world depression has thus far prevented cotton consumption from rising as it usually does In response to low prices, but consumption has been running ahead of last season; the Orient has taken tremendous quantities of American cotton; the Egyptian and Indian crops are materially smaller than last year; American cotton is cheaper relative to most foreign growths than for several years; stocks of cotton in mill hands are moderate and stocks of goods beyond the mills are unquestionably small. Such facts as these lead the cotton trade to view the future with more hopefulness than might be expected in view of the current statistical position of the staple and the present status of world trade. Yarn Mills of Textiles, Inc. to Work Full Time. The following Charlotte, N. C. advice is from the "Wall Street Journal" of Dec. 28: The 21 combed yarn plants of Textiles, Inc., of Gastonia, will operate on full time, day shift only, for at least 10 to 15 weeks, beginning Jan. 1. New orders justify full-time schedule. These mills represent the first Cuban Sugar Stabilization Institute Opposes yarn mill merger in the South, completed recently. Restriction of Sugar Crop. In its issue of Dec. 23 the "Wall Street Journal" reported Decline in World Consumption of American Cotton the following from Havana: in November. • The Cuban Sugar Stabilization Institute held a secret meeting Tuesday to hear the opinion of mill owners regarding the negotiations at the Paris World consumption of American cotton during November Sugar Conference. 996,000 bales, compared with 1,017,000 in October, Rodriguez Blanca, President of the Sugar Planters' Association, sent a totaled report to President Machado saying they do not favor obligatory restrictions and 929,000 in November last year, according to the New of the Cuban sugar crop, and that they do not regard the Chadbourne Plan York Cotton Exchange Service, which on Dec. 29 said: JAN. 2 1932.1 FINANCIAL CHRONICLE Total consumption in the four months ending Nov. 30, constituting the first third of the season, was 3.913,000 bales, agaisnt 3,555,000 in the same period last season. Consumption in November was 67,000 bales, or about 7% larger than in November last year. Consumption in the four months ending Nov. 30 was 358,000 bales, or about 10% above that in the same period last season. The Orient has registered by far the greatest increase over last season, using approximately 191,000 bales in November, compared with 109,000 in the same month last year, says the Exchange Service. Great Britain shows the next largest relative increase, with a consumption of 107,000 bales, against 94,000 last year. The United States used somewhat more than last season, spinning 418,000 bales against 400,000. The Continent of Europe still lags behind last season, consuming 264,000 in November this year against 306,000 last year. 43 It is hoped that eventually, by this plan, homes will be saved, purchasing power will be restored, and the children will not suffer permanent physical injury. Production of Cotton Cloth During November, According to the Association of Cotton Textile Merchants of New York. The production of cotton cloth in American cotton mills during the month of November 1931 amounted to 494,365,000 square yards, according to an estimate announced Dec. 21 by the Association of Cotton Textile Merchants of New York, basing its calculation on the report of spindleManchester(England) Cotton Spinners Union Opposes hour activity released by the Bureau of the Census of the Increased Working Hours. Department of Commerce. This compares with an estiUnder date of Dec. 24 Associated Press advices from mated output of 479,351,000 square yards in November 1930. Manchester (England) stated: Members of the spinners' union in this cotton mill district American Commercial Alcohol Corporation Raises their leaders to-day to unite in opposition to any attempt were urged by at an increase Alcohol Prices. in working hours. It was the union reply to a circular issued A new base price on commercial alcohol for the first by the employers' organization suggesting that mill owners would be at liberty after Jan. 1 to run quarter of 1932 of 27M cents per gallon has been announced their plants as many hours a week as they choose. On that date the agreement under which workers and employers have operated since to the trade by the American Commercial Alcohol Corp. 1919 comes to an end. The base price one year ago was about 18 cents per gallon. The agreement stipulates a 48-hour week and on Dec. 1 the owners The new price is at plant, denaturing and packaging charges gave notice that they intend to end it and suggested negotiations with a view to increasing the working week. Union executives were unanimous on various formulae to be added. This will bring the tank in reject ng the offer to negotiate. car price of formula C. D. No. 5 to 30M cents per gallon. On the previous day (Dee. 23) London press accounts Drum price for C. D. No. 5 will be 34M cents per gallon said: in ear load lots. The British Federation of Master Cotton Spinners' Associations has notified its members that beginning Jan. 1 they are at liberty to increase working hours beyond 48. The circular adds, however, it is undesirable to put into effect the longer day unless a corresponding change is made in wages. This circular makes regular the position of those members of the Federation in Yorkshire who aiready had been openly defying the agreement for a 48-hour week between spinners and operatives. Acts to Aid Debt-Ridden Workers—Begins Rehabilitation of a Village. An experiment in emergency rehabilitation of debt-ridden employees has been inaugurated by the Ford Motor Co. in Inkster, Mich. If it succeeds it probably will be extended to other communities chiefly populated by Ford workers. A dispatch from Detroit, Dee. 16 to the New York "Times" also said in part: Henry Ford Believing that the big problem of after-depression readjustment is going to be reclaiming for society those whom the depression has pushed down and out, Mr. Ford has instituted an experiment in rehabilitation at Inkster, a village of 1,000 inhabitants adjacent to Dearborn, where the Ford interests are centered. Inkster is one of those hastily constructed villages which sprang up chiefly to house Ford workmen. It was incorporated in 1927 and is an ideal ground for this experiment, because its population is almost entirely one race, there being 500 colored families and only 50 white families. The selection of this race group was accidental and due to proximity. Inkster is a village of little cabins along mud roads. From the top of every cabin sticks a radio aerial, but the radios are mostly gone now. So are the village lights and the police, Inkster having been forced to suspend both these services last May because of lack of revenue to support them. The banks are gone and the few storekeepers are deep in debt, as is almost every one in Inkster. The men had been out of work from six months to two years, and sat in sullen groups in the little houses. A hopelessness had seized the village which reflected itself in untidy homes. Every yard was littered with rubbish. Vacant lots were junk piles. The Ford Motor Co. thought that the solution lay in cleaning up the village and putting the men to work. In one week 87 loads of rubbish were removed. Roads were scraped and outwardly Inkster took on a different appearance, but still all was not well. Hundreds of dollars of debts had been incurred by many of the men— even as high as $3,800 in one case—and as fast as the men went back to work their pay was garnisheed, until not a sufficient amount was left to feed and clothe their families. The women and children suffered as much as ever. Also, in some cases, the feeling that hard times were over expressed itself in folly. They concluded that these people had not learned the lesson which those months of idleness should have taught them, that is, first to pay off their debts and put their house in order. That was the beginning of the Inkster educational experiment, which probably will be repeated among other groups. The men were taken out of the 36-a-day group and work was given to them at 12% cents an hour, $1 a day being about what was needed actually to feed these families. Meantime, the Ford Motor Co."0. K.'d" all the outstanding accounts— electric, gas, instalments payments and real estate contracts. It has also now established a temporary commissary where food may be purchased at practically wholesale prices. A hot vegetable kitchen has been opened where on Nov. 9 1,700 received supplies and 647 were cared for on Dec. 14. The wives of the men employed by the Fiord Motor Co. volunteered their services in the kitchen, a new crew being used every day, so that they are actively contributing and are happy. A shoe-cobbling department reconditions shoes for 65 cents a pair. Clothing has been furnished in amounts ranging from $25 to $40 a person. For these supplies the Ford Motor Co. accepts "I. 0. Us." from such employees. Just how much each man actually earns depends upon himself —his demonstration of willingness to work and sobriety of judgment. "Seek Way to Do Without Money." Nothing is being given to any one free, but the entire community is being guided out of inextricable difficulties to the status of contributing citizens. This is not competition with the regular merchants of Detroit. because these victims of the depression would have no individual purchasing power. Jackson Iron 8c Steel Co. Resumes Work. Jackson, Ohio, Associated Press advices Dec. 23 said: One hundred and fifty men, idle since last June, received a welcome Christmas present to-day—they returned to work. The Jackson Iron & Steel Co. reopened its furnaces after having been closed for half a year. Steel Prices Advanced by Inland Steel Co. The Inland Steel Co. has announced a price of 1.70c. a pound, Chicago, on bars, shapes and plates for delivery in the first quarter of 1932, an advance of $2 a ton over recent quotations, according to Associated Press %dykes from Chicago, Dec. 29. Petroleum and Its Products—Industry Starts New Year With Production Well Under Control and Prices on Firm Basis—Texas and Oklahoma Strengthening Curtailment Measures. With the start of the New Year the petroleum industry finds itself in a much firmer condition than at this time last year, with production in the large mid-continent and Texas areas coming well under control and the fear of lowering crude prices somewhat alleviated. The most important recent action was the voluntary shut-down of large companies operating in Texas, who stopped both producing and refining operations one day a week. The first figures available since the shut-down started two weeks ago show that daily average production for the week ended Dec. 26 totaled 2,292,900 barrels, as against 2,430,300 barrels daily the previous week. This is a decrease of 137,000 barrels, largely made possible through the Texas action. The Oklahoma Corporation Commission has prepared its allocation figures for the different fields of the State, and this will add greatly to the efforts being made throughout producing centers in so curtailing production that the disastrous price slashing of the past year will not be repeated in 1932. According to the Oklahoma order, that State will be held to a daily output of 475,000 barrels, a reduction of 71,000 barrels from the present allowable of 546,000 barrels. The Oklahoma City field will be allowed a daily output of 160,000 barrels, and the Greater Seminole area 135,000 barrels, the balance of the State's field allowed a total of 180,000 barrels daily. Reports that the State militia were to be withdrawn from the East Texas fields were refuted by Governor Ross Sterling this week. He declared his intention of maintaining martial rule in that district until all danger of trouble had been overcome. It had been reported that Governor Sterling would return control of the field to the State Railra,od Commission which ordinarily controls all oil matters in the State. However, various legal entanglements had developed the weakness of the Commission in enforcing its ruling, and it was on this account that the State troops were called into play. The Governor, through use of his arbitrary powers enforced by the militia, had reduced the per well allowable in East Texas successively from 225 barrels per day to the latest maximum of 100 barrels per well per day. Faced with the statement that the $175,000 appropriation for the main- 44 [VoL. 134. FINANCIAL CHRONICLE tenance of thel troopslwasinearly exhausted, Governor Sterling counteredjwith his decision to issue deficiency warrants to cover the:expenditure. There were no price changes in crude during the week. for the week ended Dec. 26 1931 was 1,793,300 barrels, as compared with 1,921,100 barrels for the preceding week, a decrease of 127,800 barrels. The following are estimates of daily average gross production, by districts: Prices of Typical Crudes per Barrel at Wells. (All gravities where A. P. I. degrees are not shown.) $0.63 Bradford, Pa61.85 Eldorado, Ark., 40 Corning.Pa .68 .80 Rusk, Texas. 40 and over Illinois .85 .80 Salt Creek, Wyo.,40 and over .60 Western Kentucky .75 Darst Creek 1.05 Mideontlnent, Okla.,40 and above_ .85 Sunburst, Mont Hutchinson. Texas,40 and over-- .66 Santa Fe Springs, Calif.,40and over .75 .72 Spindletop. Texas, 40 and over__ .79 Huntington, Calif., 26 Winkler. Texas 1.75 .71 Petrolla. Canada Smackover, Ark., 24 and over .65 PRICES REFINED GASOLINE PRODUCTS - OKLAHOMA REDUCED - EASTERN MARKETS MAINTAIN STATUS 17NCHANEED EXCEPT FOR LOCAL COMPETITIVE MOVES -KEROSENE STRONG AT 60. TANK CAR. DAILY AVERAGE PRODUCTION (FIGURES IN BARRELS). Weeks EndedDec.26 '31. Dec. 19'31. Dec. 12 '31. Dec. 27'80. Oklahoma 458.100 538,650 545,350 534,950 108.800 Kansas 105,100 105,550 107,800 57,250 Panhandle Texas 53,000 52,600 51,750 North Texas 58,150 55,600 54.350 55,500 West Central Texas 25,850 28.900 26,250 26,600 West Texas 239,150 198,150 175,600 197,500 East Central Texas 40,550 56,750 50,300 56,850 East Texas 410,900 316,000 387,050 Southwest Texas 82.100 55,200 57,000 58,250 North Louisiana 42,000 27,550 27,600 27,900 Arkansas 50,950 33,050 37,400 34.250 Coastal Texas 115.700 159,900 126,950 120,000 Coastal Louisiana 29,700 26,150 33,650 35,400 Eastern (not incl. Michigan) 108.250 100.000 110,050 109,500 16,250 Michigan 8,800 14,150 14,850 Wyoming 37,800 38,350 47.150 36,300 Montana 7,800 7,800 6,600 7,950 Colorado 4,000 4,100 3.950 3,800 New Mexico 43,250 43,500 42.300 43,700 California 499,600 509,200 508,200 565,800 With the exception of a 10. per gallon reduction in tankwagon and service-station prices in Oklahoma announced Thursday by the Continental Oil Co., the refined products markets throughout the country maintained an unchanged status during the week. Heavy storms throughout the mid-Western areas cut down consumption somewhat, but not to a sufficient extent to exert influence on the wholesale or retail markets. The Oklahoma reduction was made effective throughout the State, and was occasioned by a similar reduction in the State tax, which now is 4c. as against the previous rate of 5c. per gallon. Demand throughout the Eastern Seaboard has been fairly well maintained through the week. No heavy commitments were reported, but a good spot business has been noted in both gasoline and kerosene. Sectional competitive measures led to a 2c. per gallon reduction in gasoline in Yonkers, announced last Saturday by the Standard Oil Co.of New York,and effecting both tank-wagon and servicestation price structures. The tank-car situation on gasoline has remained unchanged, with some reports of sales being made under posted prices, but with the market as a whole strongly supported. Kerosene has been most active in the past few days, with the 6c. per gallon, tank-car price holding steadily with shipments moving in good volume. Domestic heating oils have been rather quiet, with consumption continuing on a level basis and prices steady and unchanged. Grade C bunker fuel oil continues at 600. a barrel, at refinery, and Diesel at $1.30'a barrel, same basis. Gas oil consumption is slightly improved, with prices unchanged. Reports from Chicago indicate that the lowering crude production figures are having a beneficial influence on the refined products market. Prices there on Ti. S. motor gasoline below 57 octane, however, is still moving at from 23.c. to 2Ytc. per gallon. Price changes of the week follow: 2,292,900 2,430.300 2,452,650 2,126,750 The estimated daily average gross production for the Mid-Continent field, including Oklahoma, Kansas, Panhandle, North, West Central, West, East Central, East and Southwest Texas, Aorth Louisiana and Arkansas, for the week ending Dec. 26 was 1,430,550 barrels, as compared with 1,549,650 barrels for the preceding week,a decrease of 119,100 barrels. The Mid-Continent production, excluding Smackover (Arkansas) heavy oil, was 1,408,750 barrels, as compared with 1,526,750 barrels, a decrease of 118,000 barrels. The production figures of certain pools in the various districts for the current week, compared with the previous week, in barrels of 42 gallons. follow: -Week Ended-Week EndedSouthwest TexasOklahomaDec. 26. Dec. 19. Dec. 26.Dec. 19. 1,800 1.850 Bowlegs 14.050 14.050 Chapmann-Abbot 17,250 19,250 Bristow-Slick 11,800 11.650 Dam Creek Burbank 7,400 7.450 11,800 11.850 Luling Carr City 8,400 9,500 22.050 19.500 Salt Flat North LouisianaEarlsboro 16,350 15,900 East Earlsboro 800 800 16,050 14,900 Sarepta-Carterville South Earlsboro 4,750 5,150 5,200 6.000 Zwolle ArkansasKonawa 6.400 6.650 2.900 2.900 Little River 20,800 19,050 Smackover, light 21.800 22.900 East Little River 2,350 2,250 Smackover,heavy Coastal TexasMaud 1,900 2.050 Mission 20,100 20,700 9,500 9,550 Barbers Rill 4,700 5,650 Oklahoma City 171.050 186,600 Raccoon Bend 14,150 15,100 St. Louis 20,000 20,350 Refuglo County 9,500 10,850 Se,aright 4.000 3,850 Sugarland Coastal LouisianaSeminole 12.650 12,700 6,900 10,850 East Seminole 1,350 1,400 East Hackberry Old Hackberry 600 Kansas600 Rita Wyoming16,700 17.050 21,950 22,650 SedgwIck County 15,650 17.550 Salt Creek MontanaVoshell 10,150 10,050 Kevin-Sunburst 4,800 4.750 Panhandle TexasNew MexicoGray County 33,050 32,350 37,200 87,200 Hutchinson County.- 11,450 12,760 Hobbs High Balance Lea County 4,000 4,150 North TexasCaliforniaArcher County 11,700 12.000 16,000 22,000 North Young County_ 6.800 7.000 Elwood-Goleta 22,700 22,000 Wilbarger County 11,400 11,650 Huntington Beach Inglewood 13,600 13,600 West Central Texas59.500 61,500 South Young County___ 4,500 4,600 Kettleman HIM Long Beach 76,800 76,200 West Texas49,300 50,200 Grans and Upton Cos- 19,650 21,800 Midway-Sunset 22,000 22,000 5,550 6,300 Playa Del Key Ector County 23,400 24,650 Santa Fe Springs 63,000 63,300 Howard County 24,800 29,450 Seal Beach 13,000 13,700 Reagan County 41,500 40,300 32,000 35,100 Ventura Avenue Winkler County 56,900 65.400 Yates Pennsylvania Grade1,900 2,900 Balance Pecos County Allegany 7,600 8.100 East Central Texas-43,700 49,850 Bradford 27,650 29,200 Van Zandt County Kane to Butler 6,950 6,400 East Texas6,150 6,200 Rusk County-Jolner-106.500 129,350 Southeastern Ohio 104,450 127,650 Southwestern Penna.... 3.150 3,400 Kilgore Dec.26.-Standard Oil Co.of New York reduces tank-wagon and service13,250 12,750 Gregg Co.-Longview--105,050 130.050 West Virginia station gasoline prices 2c. per gallon in Yonkers. N. Y. Dec. 31.-Continental 011 Co. reduces tank-wagon and service-station gasoline prices lc. per gallon throughout the State of Oklahoma. This was brought about by lc. reduction in State tax, reduced from Sc. to 4c. per gallon. Gasoline, U. S. Motor. Tank Car Lots. F.O.B. Refinery. New Orleans,ex.$.05-.0534 N.Y.(Bayonne)New YorkArkansas Colonial-Beacon.$0.06 .04-.043 Stand. 011. N.J..$0.0634 Crew Levick---- .063-t California 05-.07 Stand,011, N.Y. 0.0634 Los Angeles, ex_ .0434-.07 z Texas .06 TideWater011Co .06 Gulf Ports 06 Gulf .05-.0534 Richfleld011(Cal) .0634 Tulsa .0434-.05 Continental .06 Warner-Quin. Co .0835 Pennsylvania_ Republic .06 .0534 Pan-Am.Pet.Co. .06 Chicago 6 0331-.04 Shell Eastern Pet .06 z "Texaco" is .07. Gasoline. Service Station, Tax Included. • 8.149 $ 18 Kansas City New York $.143 Cincinnati 162 18 Minneapolis Atlanta .195 Cleveland 118 19 New Orleans .159 Denver Baltimore .131 Philadelphia 11 Boston 16 Detroit 17 13 San Francisco Buffalo 148 Houston 129 19 St. Louis Chicago 15 Jacksonville Kerosene. 41-43 Water White, Tank Car Lots, F.O.B. Refinery, N.Y. 03ayonne)$.0535-.06 Chicago L0235-.0335 I New Orleans, ex--$0.0334 04 North Texas34-.0335 LosAng.,ex- .0434-.06 I Tulsa .03 Fuel Oil, F.O.B. Refinery or Terminal. 6.55,65 N. Y.(Bayonne)"C"___ Gulf Coast California 27 plus D Bunker "C" ..c,$_...7-5-1..50051Chicago 18-22D_ .42%-.50 $.60 Diesel 28-30 D 1.301 New Orleans Gas 011. F.O.B. Refinery or Terminal N. Y.(Bayonne)I TulsaI Chicago28,I3 plus--8,0334-.041 32-36 D Ind__$.0134-.02 I 32-36 13 Ind-_$.0134-.02 Crude Oil Production in the United States Declines. The American Petroleum Institute estimates that the daily average gross crude oil production in the United States for the week ended Dec. 26 1931 was 2,292,900 barrels, as compared with 2,430,300 barrels for the preceding week, a decrease of 137,400 barrels. Compared with the output for the week ended Dec. 27 1930, of 2,126,750 barrels daily, the current figure represents an increase of 166,150 barrels per day. The daily average production east of California Total Venezuelan Oil Output in November Higher Than in Preceding Month, but Continued Below Rate a Year Ago-Shipments Fall Off. According to O'Shaughnessy's "Weekly Oil Bulletin," production of crude oil in Venezuela during the month of November, 1931, totaled 9,535,068 barrels (a daily average of 317,836 barrels), as against 9,440,165 barrels (a daily average of 304,521 barrels) in the previous month and 10,910,501 barrels (a daily average of 363,683 barrels) in the corresponding month in 1930. Estimated shipments of crude oil in Venezuela in November 1931 amounted to 8,984,320 barrels (a daily average of 299,477 barrels), as compared with 9,639,300 barrels (a daily average of 310,945 barrels) in October 1931. The "Bulletin" reports as follows: CRUDE OIL PRODUCTION IN VENEZUELA (PARTLY ESTIMATED). (In Barrels of 42 Gallons) Nov. 1930. Per Day. Per Day. Nov. 1931. Companies8,166.224 88,147 105.541 2,644,419 V. 0. C 3,164,056 108,744 3,262,323 105,468 Lego 1,875,033 39,203 1,176,088 62,501 Gulf 1,402,269 32,626 978,775 46.742 Caribbean Petroleum 730,789 23,302 699,052 Creole Petroleum 21,111 633,331 Colon Oil 149,845 131.580 4,386 lia B. C.0.,Ltd 317 7,400 9,500 247 General Asphalt Total By FieldsLagunIllas La Rosa-Ambrosio Benitez Concepcion La Paz Mene Grande Tarra El Mene QUIreCillife Guanoco Total a Closed down. 9,535,068 317,836 10,910.601 363,683 5,666,602 1,534,412 a 233,521 34.417 978.775 633,331 131,580 312,930 9,500 188.887 51.147 a 7,784 1,147 32,626 21.111 4,386 10,431 317 6,148.134 2,070.940 51.220 387.282 44,327 1,462,269 414.885 149.845 254.199 MOO 204,938 69,031 1,707 12,243 1,478 46.742 13,830 4,995 8,473 247 9,535,068 317,836 10.910,501 363,688 JAN. 2 1932.] FINANCIAL CHRONICLE SHIPMENTS OF VENEZUELAN CRUDE OIL. (In Barrels of 42 Gallons) Month ofNov. 1931. Oct. 1931. Sept. 1931. Aug. 1931. July 1931. V.0. C 2.499,000 2,690.000 2,659,000 2.856,000 2,591.900 Lugo 3,077,800 3,671,000 3,458,400 3,136,700 3,303.600 Gulf 1,152,000 872,000 980,000 1,112.000 1,447.000 Caribbean Petroleum 778,020 910,000 840.000 756.200 869.000 Creole Petroleum 753.000 761,000 789.000 530.000 570,500 Colon 011 592.700 590,000 560.000 562,600 637.100 B. C. O.. Ltd 134,800 145,300 133,800 166,400 135.600 General Asphalt None None None None None Total e8,984,320 a9,639,300 b9.420.000 c9,274.100 d9.401,400 a Equivalent to 310,945 barrels per day. b Equivalent to 314,000 barrels per day. c Equivalent to 299.164 barrels per day. d Equivalent to about 303,271 barrels per day. e Equivalent to 299,477 barrels per day. 46 previously reported as "at refineries." c Included above in the table for the week ended. Note.-All figures follow exactly the Present Bureau of Mines' definitions. Crude oil runs to stills include both foreign and domestic crude. In California, stocks of heavy crude and all grades of fuel oil are included under the heading "gas and fuel oil stocks." American Petroleum Institute Attacks "Gasoline Bootlegging"-Institute Measures Against $50,000,000 Tax-Evasion "Racket." Associated Press accounts from Cleveland, Ohio. on Dec. 27 stated: An attack on gasoline bootlegging, a 850,000,000 racket rivaling the Illicit liquor trade, was mapped out to-day by W. T. Holliday, head of the marketing division of the American Petroleum Institute. The racket is applied to evade State gasoline taxes, especially where they are higher than 3 cents a gallon. Mr. Holliday, who is President of the Standard Oil Co. of Ohio, said. He charged that in many places it is operated by large syndicates, with great power, huge income and serious corruption of public officials. The tax evaders, he asserted, are cheating taxpayers of thousands of miles of modern highways, adulterating motor fuels to the discredit of legitimate dealers, and bringing a threat of a ruinous gasoline price war. They evade taxation chiefly in seven different ways, Mr. Holliday said: It should be borne definitely in mind that comparable quantities of Abuse of refund and exemption privileges: adulterate motor fuel with nongasoline have always existed at similar locations as an integral part of the taxable products: truck across State lines, usually at night. divert ostensible system of distribution necessary to deliver gasoline front the points of out-of-State shipments to the same State; make false bills of lading, and manufacture to the ultimate consumer. While it might appear to some operate dummy sales corporations. that these quantities represent newly found stocks of this product, the To combat the practice, the Institute plans to co-ordinate all local and industry itself and those closely connected with it, have always generally inter-State work to prevent tax evasion and assist its local committees to known of their existence. The report for the week ended Aug. 22 1931 fight the evil. was the first time that definite statistics had ever been presented covering the amount of such stocks. The publication of this information is in line with the Institute's policy to collect, and publish in the aggregate, statis- Investigation of Retail Price of Gasoline in Oklahoma. tical information of interest and value to the petroleum industry. An investigation of the price of retail gasoline in Oklahoma For the purpose of these statistics, which will be issued each week, a bulk terminal is any installation, the primary function of which is to supply other will be resumed by the Attorney-General's office as a result smaller installations by tank cars, barges, pipe lines or the longer haul tank of an increase of one cent per gallon announced by several trucks. The smaller installations referred to, the stocks of which are not major companies on Dec. 24. Associated Press accounts Included, are those whose primary function is to supply the local retail trade. Up to Aug. 22 1931, statistics covering stocks of gasoline East of Cali- from Oklahoma Dec. 25,from which this is learned, also said: fornia reflected stocks held at refineries only, while for the The price was increased from 16 to 17 cents a gallon for white gasoline past several years California gasoline stocks figures have included, and will continue to after State tax officials announced the gasoline tax would be reduced from include, the total inventory of finished gasoline and engine distillate held 5 to 4 cents a gallon on Jan. 1. by reporting companies wherever located within Continental United Further Associated Press dispatches, Dec. 28,from OklaStates, that is, at refineries, water terminals and all sales distributing stations including amounts in transit thereto. homa City stated: A threat of drastic action to bring down retail prices of gasoline was made Gasoline at "Bulk Terminals." Gasoline "in Transit." I.o-day by Governor W. H. Murray. Major companies last week increased the sale price of gasoline 1 cent a Figures End of Week. Figures End of Week. I allon in Oklahoma, making the top price 20 cents for the highest grade. District. J. Berry King, Attorney-General, has resumed investigation of Dec. 26 Dee, 19 Dec. 27 Dec. 26 Dec. 19 Dec. 27 gasoline 1931. 1031. rices under authority of the last Legislature. He said he expected 1930. 1931. 1931, 1930. further evelopments later in the week. East Coast 6,883,000 6,596,000 7,096,000 1,634,000 1,912010 1,742,000 Lieut.-Col. Cicero I. Murray, Appalachian head of the oil 336,000 States' 379,000 advisory committee 424,000 Ind.. Ill., Ky n charge of crude oil proration in this State, declared that, 2,949.000 3,076,000 2,011,000 47.000 47,000 while retail Okla., Kans., Mo. 390,000 533,000 Hoes were being boosted 1 cent a gallon, the wholesale prices declined from Texas 216.000 240,000 205,000 to 3 cents. T.oulslana-Arkans. 366,000 419,000 497,000 19,000 Rocky Mountain _ exas Oil Holiday-More than 85% of Producers Closed Total east of Calif.. 11,140,000 11,243,000 10,233,000 1,681,000 1,978,000 1,742,000 Sunday with All Major Companies Participating. Texas Gulf 182,000 206,000 179.000 Louisiana Gulf_ 318,000 308,000 From the "Wall Street Journal" of Dec. 29, we take 364,000 Bulk Terminal Stocks of Gasoline and Gasoline in Transit Lower. The American Petroleum Institute below presents the amount of gasoline held by refining companies in bulk terminals and in transit thereto, by Bureau of Mines' refining districts, East of California. The Institute's statement follows: following from Austin: the More than 85% of the wells in Texas were closed Sunday, Weekly Refinery Statistics for the United States. according to incomplete reports received by the Texas Railroad Commission . All of Reports compiled by the American Petroleum Institute the major companies and most of the independent operators ceased profor the week ended Dec. 20 1931, from companies aggre- duction and will continue to observe the six-day week plan for an indefinite gating 3,665,600 barrels, or 95.2% of the 3,852,000 barrel length of time, it was stated. The proration executive committee of the Hobbs, N. M., field has ordered estimated daily potential refining capacity of the United a one-day-a-week shutdown of all wells in that pool, which a daily States, indicate that 2,238,000 barrels of crude oil were allowable of 37,047 barrels. In the Panhandle district the dailyhas production last week dropped to 51,751 barrels, from 52,579 barrels. run to stills daily, and that these same companies had in storage at the end of the week, 37,199,000 barrels of gasoline, Increase in Gasoline Prices in Buffalo. and 132,541,000 barrels of gas and fuel oil. Reports received Associated Press advices from Buffalo, N. Y., Dec. 28, on the production of gasoline by the cracking process indicate that companies owning 95.0% of the potential charging stated: Five major gasoline companies to-day announced an Increase of 1 cent capacity of all cracking units, manufactured 3,179,000 a gallon in the price of gasoline here, effective immediately, one official barrels of cracked gasoline during the week. The complete saying that it was "to get the price In lino with other cities report for the week ended Dec. 26 1931 follows: The new prices are 14 cents for standard grades and 17 cents for special CRUDE RUNS TO STILLS. GASOLINE STOCKS AND GAS AND FUEL OIL STOCKS, WEEK ENDED DEC. 26 1931. (Figures in barrels of 42 Gallons) District. Per Cent Potential Capacity Reportinc. East Coast 100.0 Appalachian 01.8 Ind., Illinois, Kentucky 98.9 Okla., Kans., Missouri_ 89.6 Texas 91.3 Loutslana-Arkansas 98.9 Rocky Mountain 89.4 California 07.1 Total week Dee. 26 Daily average Total week flea. 19.__ Daily average Total Deo. 27 1930..., Daily average 95.2 95.2 95.7 Crude Runs to Stills. Per Cent Oper. of Total a Gasoline CapacUy Stocks. Report. Gas and Fuel Oil Stocks. 3,172,000 618,000 2,019,000 1,422,000 3,937,000 1,224,000 249,000 3.025,000 71.5 64.3 66.8 46.7 73.5 75.9 24.8 48.7 4,480.000 1,330,000 4,181.000 3,505,000 7.573.000 1,262,000 1,665,000 *13,203.000 15,666,000 2,238.000 16,221,000 2,317,300 61.1 37,199,000 132,541,000 63.2 35,936,000 133,008,000 15,452.000 2,207.400 61.8 .37,019,000 136,917,000 7,012.000 1,601,000 5,577,000 4,365,000 11,873,000 4,070.000 750,000 96,393,000 cTexas Gulf Coast 99.8 3,135,000 84.3 8,845,000 5,784,000 cLouislana Gulf Coast_ 100.00 817.000 3,168,000 79.1 1,110.000 a In all the refining districts indicated except California, figures In this column represent gasoline stocks at refineries. In 'California, they represent the total Inventory of finished gasoline and engine distillate held reporting companies wherever located within Continental United States-(stocby ks at refineries, water terminals and all sales distributing stations, Including products In transit thereto). b Revised In Indiana-Illinois district, due to transfer to "bulk terminals" of stocks grades. A similar increase was announced in Batavia. Bolivia Asks Data on Oil-Seeks Facts on Concession to Standard. La Paz (Bolivia), advices Dec. 23, are taken as follows from the New York "Times": The Government has called on its technical commission to ascertain the true cost of drilling and operating concessions of the Standard Oil Co., presumably in response to charges made in Congress that the company was not fulfilling its obligations. The date asked is: The company's actual capital investment, materials on hand for exploitation, the cost of drilling, the productive capacity of wells and refineries, distribution cost, means and cost of transportation to Bolivian points, and the geological structure. Plan for Oil Development Approved by National Administrative Council in Uruguay. The following is from a Montevideo cablegram, Dec. 25 to the New York "Times": Oil Surrey Approced. Meanwhile, in the economic field, the National Administrative Council has approrpiated funds to equip four geological crews which will explore during the coming year for petroleum and coal. This is in furtherance of the Government's efforts to free the country from the necssity of Importing fuels. 46 FINANCIAL CHRONICLE A contract for the purchase of 20,000 tons of petroleum and 10,000 tons of kerosene from the Soviet has been ready to sign for some time, but a long delay is likely before it is signed because the country has no unloading equipment or storage tanks necessary to handle It. At its last session the council postponed authorization to Install the required equipment until the matter had been further studied by technical experts. The local Standard Oil organization published a long statement in the newspapers to-day, charging that the Government's project to import petroleum products constitutes unfair competition, threatening the destruction of the foreign corporations, which have invested millions locally. Mexico Crude Oil Gains-Produat of Tuxpan and Panuco Regions Up Over Previous. The following from Tampico, Dec. 26, is from the New York "Evening Post": Crude oil production in the Tux-pan and Panuco regions averaged 63,455 barrels daily during the week ended Dec. 12, compared with 63,336 daily during the preceding week and 73,571 a day during the week ended Dec. 13 1930. Heavy oil roduction averaged 35,964 barrels daily and light oil 27,491 barrels daily. Building Construction Major Consumer of Finished Steel in 1931-Railroads Hold Second Place-Consumption by Automotive Industry Fell Off. Building construction again led all industries as the major consumer of finished steel, the 1931 distribution analysis by the magazine "Steel" will show in its yearbook. Although the margin of leadership was diminished in tonnage, the percentage of total steel used increased. The yearbook also will report as follows: Building construction and furnishing in 1931 took 16.64% of all finished steel, or a total of 2.987,975 gross tons. This was a drop in both percentage and tonnage from 1930 when 17.80% accounted for 5,106,215 tons. Railroads continued to hold second place and the automotive industry third In 1931. Railroad construction and maintenance required 15.21%, or 2,731,296 tons. This compares with 16.95% and 4,862,279 tons consumed in 1930. Decreased consumption by the automotive industry was felt principally by the manufacturers of steel bars, sheets and strip. Consumption dropped from 4,044,811 tons and 14.10% In 1930 to 2,411,569 tons and 13.43% in 1931. This tonnage decline was not quite as large proportionately as that In the building and railroad fields. Although the oil, gas and water industries increased their share of consumption from 9.48% in 1930 to 9.79% in 1931,smaller total output caused a drop from 2.719,489 tons to 1,757,949 tons In that period. The smaller drop in this field than In the other major consuming lines was due principally to large-scale line pipe construction that took many hundred thousand tons of plates and pipe. Exports of finished steel in 1031 reflected unsettled economic conditions of the world by dropping from 1,244,998 tons in 1930 to 764.950 tons in 1931, a decline of 38.5%. Finished rolled steel consumption in 1931, eliminating skelp, wire rods, sheet and tin bars and billets and blooms shipped to secondary manufacturers for conversion, was approximately 17,056,582 tons. Copper Market Dull-Apathy in Zinc and Tin. Business in the non-ferrous metals market in the week just ending was dull and prices showed little variation, reports "Metal and Mineral Markets." The holidays were seized upon by buyers and sellers as an excellent reason for doing nothing. Copper producers, however, still had some work to do during the week on revision of the rules of the export organization and announcement of an agreement is expected shortly. Statistically, none of the metals underwent any change for the better during the month of December. Copper stocks undoubtedly increased again. Leading sellers announced a 15 cents reduction in bismuth, establishing the market at $1 a pound. Quicksilver was dull, but quotably unchanged. Antimony was offered at slightly lower levels in the course of the month. Copper trading was dull throughout the week just closing, but the price , 4 cents, delivered Connecwas maintained by first hands on the basis of 71( ticut. Many in the industry expected a higher price for the turn of the year, largely on the strength of the curtailment agreement, but the almost complete absence of buying interest soon made it apparent that nothing short of manipulation could bring about the desired result. A little secondhand metal for December delivery was offered during the week at concessions, but this, too, attracted only passing interest. Observance of the Christmas holidays abroad naturally restricted foreign business. In lead, practically all of the buyers took a week off for Christmas and seem bent on doing the same for New Year's. Only a few hundred tons were sold, making the week one of the quietest on record. Producers were not much perturbed over the lack of demand, however, for they have sold approximately 38,000 tons for December shipment, a total that was exceeded only twice in 1931, that is, in the months of July and August. Prices continue at 3.75 cents New York and 3.55 cents, St. Louis, for both prompt and January. Both the domestic and London tin markets moved in a very narrow range during the week, the market being In general slightly below 22 cents for prompt Straits. At the end of the week, zinc sold down to 3.125 cents, equalling the low for the year, with 3.15 cents demanded on February and March business. The undertone was not exactly weak, as most sellers believe that the position of zinc is relatively better than that of the other major metals. Steel Operations Gain Moderately-Now at 22% of Capacity-Prices of Finished Steel and Steel Scrap Again Decline. A partial resumption of steel plant operations has occurred at Pittsburgh, Youngstown and Wheeling, but the Chicago district, which had no sharp curtailment last week, is down [VOL. 134. to a 15% ingot output, largely offsetting the gains elsewhere, the "Iron Age" of Dec. 31 1931 states. Nevertheless, the average for the country is at 22% of capacity, against 21% last week, and a gain is indicated for the first week of January to approximately the rate in effect prior to the December decline. The "Age" continues: Developments relieving an otherwise drab year-end are substantial orders for sheets and strip steel, placed principally with mills at Detroit and Cleveland; increased specifications for bars from farm implement manufacturers in the Chicago district; a rise in fabricated structural steel lettings to 36,000 tons, making it the best week for such contracts since September, and an inquiry from the Erie RR. for its 1932 rail requirements, estimated at 40,000 tons. Steel companies are making an effort to check the decline in prices. Chicago mills have announced an advance of $2 a ton on bars, plates and shapes to 1.70c. a lb., but meanwhile Pittsburgh and Youngstown bar makers have taken business at 1.50c.. Pittsburgh, a reflection of the weakness that recently developed in plates and shapes. Outstanding quotations of I 40c. a lb.. Pittsburgh, on shapes have been withdrawn. The aim to reestablish a 1.60c. Pittsburgh base for the heavy hot-rolled products for first quarter has not been abandoned. Hot-rolled strip steel is being widely offered at 1.45c. a lb., Pittsburgh. for the wide and 1.55c. for the narrow, but automobile companies have obtained prices $1 a ton lower. There is continued weakness in sheets, particularly automobile body stock, and in cold-rolled fender stock, tin mill black plate and long ternes. Recent maximum prices on sheets have virtually disappeared, even on small lots. Semi-finished steel in the form of billets, slabs and sheet bars has been marked down $1 a ton, but the recently announced advances of $2 a ton on wire rods and $1 a ton on some merchant wire products are now in effect and firmly held. Price declines extend to pig Iron, Buffalo producers having reduced quotations $1 a ton for deliveries within that district. Elsewhere, pig Iron quotations are fairly steady, though largely untested. Heavy steel scrap has weakened in eastern Pennsylvania, bringing the "Iron Age"scrap composite price, which for some months has been the lowest on record, down to $8.50 a ton. The "Iron Age" composite price for finished steel is reduced to 2.052c. a lb., against 2.075c. last week. The present level is only $1.04 a net ton above the low point of the 1921-22 depression, 1.998c. a lb., which was quoted late in February, 1922. Although steel companies have not been able to accumulate sizable backlogs during the December lull in operations, some tonnage on their books will automatically be released by the change in the calendar, as many consumers and distributers have suspended all shipments until after Jan. 1. A number of rail orders placed in the fall will be rolled. The Ensley rail mill of the United States Steel Corp. in Alabama will resume next Monday after a shutdown since last July. A blast furnace and several open-hearth furnaces there will also be put into service. The freight rate advance to go into effect Jan. 4 has stimulated some shipments, but more in pig iron than in steel. Of the major steel-consuming industries. the automobile makers seem to offer the most promise for early betterment in buying, although their production schedules are being increased so slowly that only a moderate gain in output of cars in January is probable. The Ford Motor Co. is completing 2.000 new models for display purposes, and nearby volume production may depend somewhat on their publlc reception. The General Motors Corp. has placed its 1932 pig iron contracts, which normally call for about 100,000 tons within a year. Notwithstanding the rather sharp gain In structural steel awards during the week,the amount of new work coming out for bids was only 11,000 tons. In 11 months of 1931 the computed bookings of fabricated structural steel, as reported by the Bureau of the Census; were only 1,805,600 tons, compared with 2,536,800 tons in the corresponding period of 1930. The November computed bookings were 87,200 tons, or 21.8% of the country's capacity, against an average for the first 10 months of 171.840 tons a month. A comparative table, showing the changes in prices, follows: Finished Steel. Dec. 29 1931, 2.062o. a Lb. Based on steel bars, beams, tank plates, One week ago 2.075o. wire, rails, black pipe and sheets. One month ago 2.102o. These products make 87% of the One year ago 2 121e. United States output. High. Low. 1931 2.142c. Jan. 13 2.052o. Dec. 29 1930 2.362o. Jan. 7 2.121o, Dec. 5 1929 2 412c. Apr. 2 2.362o. Oct. 25 1928 2.391o. Dec. 11 2.314e. Jan. 3 1927 2 4530. Jan. 4 2.2930. Oct. 25 1926 2.4530. Jan. 5 2.4030. May 18 1925 2 560c. Jan. 6 2.396e. Aug. 18 Pig Iron. Based on average of basic Iron at Valley Dec. 20 1931. $14.79 a Gross Ton. One week ago $14.79 furnace and foundry irons at Chicago. 14.96 Philadelphia, Buffalo. Valley and BMOne month ago One year ago 16.90 mingham. High. Low. 1931 $15.90 Jan. 6 $14.79 Dec. 15 1930 18.21 Jan. 7 15.90 Dec. 16 1929 18.71 May 14 18.21 Dee. 17 1928 18.59 Nov.27 17.04 July 24 1927 19.71 Jan. 4 17.54 Nov. 1 1926 21.54 Jan. 5 19.46 July 13 1926 22.60 Jan. 13 18.90 July 7 Steel Scrap. Dec. 29 1931. $8.50 a Gross Ton. Based on heavy melting steel quo One week ago $8.58 Lotions at Pittsburgh, Philadelphia One month ago 8.76 and Chicago. One year ago 11.26 Low. High. $11.33 Jan. e 1931 $8.50 Dec. 29 15.00 Feb. 18 11.25 Dec. 9 1930 17.58 Jan. 29 14.08 Dec. 3 1929 16.50 Dec. 31 13.08 July 2 1928 15.25 Jan. 11 13.08 Nov.22 1927 17.25 Jan. 5 14.00 June 1 1926 20.83 Jan. 13 15.08 May 2 1925 An encouraging number of specific steel construction projects are developing which in a degree neutralize the year-end slump in production and further weakness in prices, stated "Steel" of Cleveland on Dec. 26. It is significant that structural awards in the past week,amounting to 44,600 tons, almost at the transition from the old to the new year, were the largest since the first week in October, due mainly to the placing of 16,000 tons for the Pittsburgh Post Office with the Fort Pitt Bridge Works Co., Pittsburgh, JAN. 2 1932.] 47 FINANCIAL CHRONICLE and 3,300 tons for the First National Bank Building, New abroad, the margin of supremacy was narrowed, "Steel" will state in its annual statistical issue. "Steel" will furYork. "Steel" adds: Structural awards for the year, now approximating 1,767,000 tons, are ther say: only about 100,000 tons less than those in 1930. Awards totalling 15,000 tons are maturing for a west side highway in New York and a subway in Newark, N. J. Mississippi River improvement work at Rock Island, 1.11., calls for 9,600 tons of steel. Pipe demands also open a more cheerful vista for 1932. A natural gas line from the Texas panhandle to Buffalo, projected by the Continental Construction Corp., Chicago, may take 200,000 tons, which would make it the largest pipe line order ever booked, though this still is in the formative stage depending on financing. A working agreement between Standard 011 of New Jersey and the Columbia Gas & Electric Corp. looks to the ultimate extension of a natural gas line from Pennsylvania into New England which obviously would require a large tonnage of pipe. First quarter purchases of cast iron pipe by many municipalities will be formulated shortly n 1932 budgets. New York is expected to be in the market for 15,000 tons. Railroad prospects also are a little brighter, and it is believed an adjustment of the roads' financial and wage problems will greatly improve their status as steel consumers. Indeed, steelmakers at Chicago now look to the railroads rather than to the automotive industry to lead steel back to another era of substantial business. Some of the Van Sweringen roads will be in the market earlier than expected for 1932 rail requirements, the Erie inquiry being prospective in a few days. While the steel works operating rate for the country as a whole was de pressed in the week ended Dec. 26 to 15-20%, this takes into account the holiday shutdown in many mills from Friday to Monday. A year ago the Christmas week rate was 30%. Because many mills do not observe the New Year holiday the operating rate may snap back to about 24% or to where it was before Christmas. Relatively, the low rate this year is less depressing than a year ago, as the steel trade now is convinced it has reached bottom, and while not anticipating a sharp comeback confidently expects the long trend to be toward improvement. Tonnage demands from the automotive industry still are postponed. While it seems definitely established Ford has decided to bring out an 8-cylinder model in January, he has not yet issued substantial releases, and with this leading low-price manufacturer delaying, others in the same field are holding back. Weakness has spread throughout the entire sheep and strip price structure. Concessions up to $3 a ton on sheets are offered on attractive business, chiefly from automobile manufacturers. Furniture sheets have been reduced $2 a ton. Cold-rolled shafting is off $2; track bolts are down $3 at Chicago. Carbon bars now are 1.55c. to 1.60c. Pittsburgh, a downspread of $1 a ton. A further reduction of $1 a ton has been made in sheet bars, billets and slabs. Due to a reduction of$3 a ton in hot-rolled sheets,"Steel's" finished steel price composite Is down 30 cents to $47.52 and the iron and steel composite Is off 12 cents to $30.16 The steel works scrap composite is 2 cents lower, at $8.12, Production of steel ingots during the week ended Dec. 28 1931, which included the Christmas holiday shut down, did not get as low as many predictions made in the industry a week or more ago, reports the "Wall Street Journal" of Dec. 30, which further goes on to say: As compared with estimates that output would break through the 20% rate, and might reach as low as 18%, the compilation by the Dow, Jones & Co., Inc., places the production for last week at slightly better than 20%, against a shade under 24% in the preceding seven days, and fractionally under 25% two weeks ago. The U. S. Steel Corp. is credited with a rate of 22% last week,compared with about 25% a week ago, and under 26% two weeks ago. Leading independents are estimated at about 18 4%,contrasted with 23% in the preceding week, and 24% two weeks ago. Reductions during the Christmas week this year were much smaller proportionately than in the past three years. In 1930 the average went off more than 10% to 24%, with U. S. Steel showing a drop of 11% to 30%. and independents down about 10% to about 20%. For the like week of 1929, the average was placed at between 39% and 40%, a decrease of more than 13% from the preceding full week. U. S. Steel was at 50%, a drop of 14%, while independents went off about 13% to a shade above 30%• In the holiday period of 1928, there were reductions in steel ingot production ranging from 22% to 28%, the various companies reporting rates of between 55% and 60% of capacity. Since the beginning of the current week, there has been an increase in the average from the preceding seven days. However, in view of year-end Inventory and other factors, the real resumption In the steel industry will not come until the first full week of January, beginning next Monday. The "American Metal Market" this week says: For all nations, output of steel bigots and castings in 1931 was 68,662,000 gross tons compared with 92,877,000 tons in 1930 and 117.980.000 tons in 1929. which was the record. All of the gains in world production from 1922 to 1929 have now been surrendered. In pig Iron, the same situation obtains. World production in 1931 totaled 55,312.000 tons against 78,485,000 tons in 1930 and 96,729.000 tons in 1929. In order of their rank, the United States led steel ingot and casting production in 1931 with 25.597.000 tons. Germany was second with 8,380.000 tons, France third with 7,850,000 tons, Great Britain fourth with 5,300,000 tons. Russia fifth with 5,000,000 tons. This is the same rank as in 1930. On the basis of per capita consumptien, in which an adjustment is made for exports and imports, the consumption of ingots and castings in the United States in 1931 average 461 pounds for each inhabitant. This compares with 731 pounds in 1930; it was the lowest since 1921, and with that exception, the smallest since 1908. Great Britain was second with a per capita consumption of 301 pounds, compared with 356 pounds in 1930. France passed Germany this year, with an average of 286 pounds, against 298 pounds a year ago. German consumption averaged 198 pounds, compared with 301 pounds in 1930. The curtailment in production was greater in the United States than abroad. In 1931 the United States accounted for 37% of all steel ingots and castings; in 1930. 43%. In 1931 the United States made 33% of all pig iron; in 1930, 40%. November Sales of Bituminous Coal at the Head of the Lakes Highest for Any Month Since January 1931—Anthracite Shipments Fell Off Sharply. Unusually warm weather in November continued to exert a restraining influence on the coal trade at the head of the Lakes, according to the United States Bureau of Mines, Department of Commerce. In the Lake Dock territory the average temperatures for the month ranged from four to eight degrees above normal. The weather was conspicuously warm during the early part of November. Toward the end of the month somewhat more seasonable weather prevailed, but the temperatures were not low enough to occasion any marked revival in the demand for coal. In addition to adverse weather conditions, the trade was further handicapped by the dullness that continued to characterize the general industrial situation. In spite of these unfavorable factors, sales of bituminous coal during November were higher than for any month since last January, amounting to 1,111,629 tons, as compared with 1,097,941 tons in October. Anthracite sales, on the other hand, fell off sharply, being 17.9% less than in the preceding month. The Bureau's statement continues: Bituminous Stocks. Receipts of soft coal dating November, although considerably less than In the previous month, were surprisingly large for this season of the year. As a result, the total stocks of bituminous coal in the hands of the commercial dock operators on Dec. 1 show little change from a month ago, amounting to 9,821,632 tons, as compared with 9,750,903 tons on Nov. 1. Of the total quantity on hand at the beginning of December, 6,591,526 tons was held by the operators on Lake Superior and 3,230,106 tons by those on the west bank of Lake Michigan. Anthracite Stocks. Anthracite receipts declined by nearly 25% in November, and a corresponding reduction is noted in stocks, in spite of the unusually low rate of deliveries that prevailed during the month. On Dec. 1 the quantity held by the commercial docks on Lake Superior amounted to 385.573 tons, and 302,141 tons was reported by the operators on Lake Michigan. The total of 687,714 tons is 35.144 tons less than the quantity on hand on Nov. 1. The decline, however, was entirely accounted for by the Lake Superior operators, as a small increase occurred in the reserves held by those on Lake Michigan. Steel ingot production in the year totaled about 25.000,000 tons or 63% of 1930 production, 46% of 1929 output and 55% of the seven-year average through 1929. The fourth quarter output was at the rate of only 18.000,000 tons annually. Obviously the new year will do much better than the fourth quarter, and it may easily do better than the whole year just coming to such a drab close. Steel ingot production last week was estimated at 18%,the computation counting out the holiday as potential working time. According to the steel mill calendar there is no holiday to be deducted this week, and the week may be forecast at 18%, which represents a correspondingly larger tonnage. Early in December, buying of steel for prompt shipment began to dwindle, while there has been little placing of actual orders for January shipment. Usually there is quite an accumulation of such business, enabling mills to ncrease their operations sharply at the beginning of January. Seasonal movement can be expected, but will be sluggish in developing and Improvement, while slow, may be continuous whereby the usual decrease after March should be avoided. Chicago mills are reasserting 1.70 cents as their first quarter price on bars, shapes and plates while Pittsburgh mills regard 1.60 cents as their regular figure, but it remains to be seen whether these prices can be established by actual trading. Black and galvanized sheets as well as some sheet specialties are being shaded $2 a ton in various sections, but efforts to obtain the old prices are not abandoned. STOCKS, RECEIPTS AND DELIVERIES AT COMMERCIAL DOCKS ON LAKES SUPERIOR AND MICHIGAN, NOVEMBER 1931, IN NET TONS. United States Continued to Lead the World in 1931 Both in Steel Production and Per Capita Steel Consumption. The United States in 1931 continued to lead the world both in total steel production and in per capita steel consumption but the retrenchment being less pronounced Pay of Union Coal Workers Cut 10% by Dealers—About 1,000 Teamsters and Handlers in New York Affected. According to the New York "Times" of Dec. 31, a 10% reduction in the basic wages of coal teamsters and coal handlers in this city, effective Jan. 1, was announced Dec. 30 at a meeting at the Pennsylvania Hotel of the Coal Lake Superior. Lake Michigan. Total. Baumfttous— Stocks on band Nov. 1 a 6,681.117 3.069.788 9,780.903 Received during November 524.895 1,182,358 657.463 Delivered (reloaded) 364.575 1,111,629 747.054 On hand Deo. 1 6,591,526 3.230.106 9,821,632 Anthractte-Stocks on hand Nov. 1 a 722.848 298.908 423,950 Received during November 32,849 32,849 Delivered (reloaded) 29,616 67.993 38,377 On hand Dec. 1 302,141 385.573 687,714 a Revised since last report. Note.—The above figures represent the commercial docks only and do not Include docks of Industrial consumers and railroads operated for their own supply. For Lake Superior, the source of Information Is the monthly tonnage report of the Maher Coal Bureau. which has been supplemented by direct Information from companies not covered by that report. The figures for Lake Superior are believed to include all commercial companies operating at Duluth, Superior, Ashland and Washburn, and also certain others at Sault Ste Marie, Hancock, and other points on the upper peninsula of Michigan. The figures for Lake Michigan are collected direct from the operators of docks on the west bank as far south as Racine and Kenosha, not Including, however. Waukegan and Chicago, Ill. 48 FINANCIAL CHRONICLE Merchants' Association, which represents the large retail coal dealers of Manhattan and the Bronx. The account adds: The reduced wage scale was voted by about 30 members of the association after it had been rejected by the two labor unions involved, according to George .1. Eltz, President of the dealers' association. He said that after several meetings both the International Brotherhood of Teamsters, Chauffeurs, Stablemen and Helpers and the Lumber, Stone, Sand and Coal Handlers' Union had declined flatly to accept a wage cut or to arbitrate the question. The decision to cut wages, Mr. Ritz said, was due to general business conditions and the competition of dealers in fuel oil. The new wage scale, he said, would take the place of an agreement with the unions made three years ago, which expires at the end of this year. It will affect about 1,000 men in this city, he said. Bituminous Coal and Pennsylvania Anthracite Production Declines. According to the United States Bureau of Mines, Department of Commerce, output during the week ended Dec. 19 1931 totaled 7,050,000 net tons of bituminous coal and 908,000 tons of Pennsylvania anthracite, as against 7,290,000 tons of bituminous coal and 1,246,000 tons of Pennsylvania anthracite during the preceding week, and 9,475,000 tons of bituminous coal and 1,385,000 tons of Pennsylvania anthracite during the week ended Dec. 20 1930. During the calendar year to Dec. 19 1931 there were produced 368,009,000 net tons of bituminous coal as compared with 453,486,000 tons in the calendar year to Dec. 20 1930. The Bureau's statement follows: The total production of soft coal during the present calendar year to Dec. 19 (approximately 298 working days) amounts to 368,009,000 net tons. Figures for corresponding periods in other recent calendar years are given below: 1930 486,293,000 net tons 453.486,000 net tons 1928 1929 500,758,000 net tons 519,198,000 net tons 1927 As already indicated by the revised figures above, the total production of soft coal during the week ended Dec. 12 amounted to 7,290,000 net tons. The following table apportions the tonnage by States and gives comparable figures for other recent years: Estimated Week,y Production of Coal by Sta es (Net Tom). Dec. 1923 Week Ended State— Dec.12'31. Dec.531.Dec. 1330,Dec. 1429. Average.a Alabama 194,000 349.000 101.000 436,000 208.000 Arkansas 30,000 29,000 25,000 40.000 48.000 Colorado 163.000 253,000 158,000 209.000 249.000 Illinois 963,000 d983,000 1,091,000 1,570.000 1,535.000 Indiana 271,000 d275,000 514.000 357,000 468,000 Iowa 70,000 75.000 121.000 88,000 112.000 Kansas 59,000 60,000 61.000 90,000 71,000 Kentucky—Eastern 550.000 563,000 682.000 988,000 584,000 Western 171,000 185.000 219.000 342.000 204.000 Maryland 43,000 39,000 52,000 64.000 37,000 Michigan 13,000 11,000 12,000 20.000 21.000 Missouri 73,000 80,000 68.000 110.000 69.000 Montana 67,000 70,000 64,000 80,000 64.000 New Mexico 34,000 36.000 44.000 53.000 56.000 North Dakota 45,000 46.000 43.000 63,000 27,000 Ohio 430.000 441,000 471.000 570.000 599,000 Oklahoma 39,000 38,000 46,000 98.000 58.000 Pennsylvania (bituminous) 1,749.000 1,595.000 2,273.000 2,837.000 2,818,000 Tennessee 75,000 74.000 100,000 128,000 103.000 Texas 11,000 11.000 13.000 46,000 21,000 Utah 144,000 132,000 130.000 128.000 100,000 Virginia 194,000 184.000 219.000 288,000 193,000 Washington 48,000 49,000 49,000 61.000 57,000 West Virginia—South'n_b 1,275,000 1,281,000 1,533.000 2,124,000 1,132.000 Northern c 446.000 601.000 706,000 483,000 692.000 Wyoming 132,000 125.000 140,000 113,000 173,000 Other States 5.000 5,000 3,000 5.000 5,000 Total bituminous coal Pennsylvania anthracite BITUMINOUS COAL. The total production of bituminous coal during the week ended Dec. 19 1931,including lignite and coal coked at the mines, is estimated at 7,050,000 net tons. This figure, based on incomplete reports of loadings, indicates a decrease of 240,000 tons, or 3.3%,from the output in the preceding week. Production during the week In 1930 corresponding with that of Dec. 19 amounted to 9,475,000 tons. Estimated United States Production of Bituminous Coal (Net Tons). 1931 1930 Cat. Year Cal. Year Week. to Date. Week. Week Ended— to Date.a 7226,000 353,669,000 Dee. 5 9,730,000 435,115,000 1.204,000 Daily average 1,235.000 1,622,000 1,521,000 7,290.000 360,959,000 Dec. 12 b 8,896 000 444,011,000 Daily average 1,215.000 1,235,000 1,483.000 1,520,000 Dee. 19 c 7,050,000 368.009,000 9,475,000 453,486,000 Daily average 1,175,000 1,234.000 1,579,000 1,521.000 [Vor.. 134. Total all coal 7,290.000 7,226,000 8,896.000 11,805,000 9,900.000 1.246,000 1,240,000 1.209,000 1,920.000 1,806,000 8,536,000 8.466,000 10,105.000 13,725.000 11,706,000 a Average weekly rate for the entire month. b Includes operations on the N. & W.; C. & O.; Virginian; and K.& M. c Rest of State, including Panhandle. d Revised. PENNSYLVANIA ANTHRACITE. The total production of Pennsylvania anthracite during the week ended Dec. 19 is estimated at 908,000 net tons. Compared with the output in the preceding week, this shows a decrease of 338,000 tons, or 27.1%. Production during the week in 1930 corresponding with that of Dec. 19 amounted to 1,385,000 tons. Estimated Production of Pennsylvania Anthracite (Net Tons). 1931 1930 Week Ended— Week. Daily Aver. Week. Daily Aver. Dec. 5 206,700 1,685,000 280,800 1.240,000 Dec. 12 1,209,000 201,500 1,246,000 207,700 Dec. 19 a 908,000 151.300 1,385,000 230,800 a minas one day's production first week In January to equalize number of days in the two years. 1930 accumulation revised to agree with results of final annual canvass of mines. b Revised sincel eat report. c Subject to revision. a Subject to revision. Current Events and Discussions — The Week with the Federal Reserve Banks. The daily average volume of Federal Reserve bank credit outstanding during the week ending Dec. 30, as reported by the Federal Reserve banks, was $2,023,000,000, an increase of $58,000,000 compared with the preceding week and of $624,000,000 compared with the corresponding week in 1930. After noting these facts, the Federal Reserve Board proceeds as follows: Ines ase (4-) or Decrease (—) Since Dec.301931. Dec 23 1931. Dees 31 1930. $ $ TOTAL RES'VE BANK CREDIT__2.202,000.000 +196,000,000 +829,000,000 Monetary gold stock 4,458,000,000 —7,000.000 —135.000,000 Treasury currency adjusted 1,761,000,000 +1,000,000 —37,000,000 On Dec. 30 total Reserve bank credit amounted to $2,202,000.000, an Increase of $196,000,000 for the week. This increase corresponds with an Increase of $322,000,000 in member bank reserve balances and a decrease of 17.000.000 in monetary gold stock, offset in part by declines of$100,000,000 In money in circulation and $31,000,000 in unexpended capital funds. non-member deposits, &c. Holdings of discounted bills increased $196.000,000 at the Federal Reserve bank of New York and declined $22,000,000 at Philadelphia, $14,000,000 at San Francisco, $13,000,000 at Cleveland and $10.000,000 at Boston, all Federal Reserve banks reporting an increase of $113,000,000. The system's holdings of bills bought in open market increased $70,000,000, of United States bonds $26,000,000, of Treasury notes $3,000,000 and of Treasury certificates and bills $16,000,000. Returns of Member Banks for New York and Chicago Federal Reserve Districts—Brokers' Loans. Beginning with the returns for June 29 1927, the Federal Reserve Board also commenced to give out the figures of the member banks in the New York Federal Reserve District as well as those in the Chicago Reserve District, on Thursday, simultaneously with the figures for the Reserve banks themselves, and for the same week, instead of waiting until the following Monday,before which time the statistics covering the entire body of reporting member banks in the different cities included cannot be got ready. Below is the statement for the New York member banks and that for the Chicago member banks for the current week, as thus issued in advance of the full statement of the member banks, which latter will not be available until the coming Monday. The New York statement, of course, also includes the brokers' loans of reporting member banks. The grand aggregate of brokers' loans the present week records a decrease of $20,000,000, the amount of these loans on Dec. 30 1931 standing at $591,000,000. The present week's decrease of $20,000,000 follows a decrease of $51,000,000 last week and a decrease of $701,000,000 in the 14 preceding weeks. Loans "for own account" decreased during the week from 8553,000,000 to $544,000,000, loans "for account of out-oftown banks" fell from 851,000,000 to $41,000,000, and loans "for account of others" from $7,000,000 to 86,000,000. The amount of these loans "for account of others" has been reduced the past seven weeks due to the action of the New York Clearing House Association on Nov.5 in restricting member banks on and after Nov. 16 from placing for Beginning with the statement of May 28 1930 the text accompanying the weekly condition statement of the Federal Reserve banks was changed to show the amount of Reserve bank credit outstanding and certain other items not included in the condition statement, such as monetary gold stock and money in circulation. The Federal Reserve Board's explanation of the changes, together with the definition of the different items, was published in the May 31 1930 issue of the "Chronicle," on page 3797. The statement in full for the week ended Dec. 30, in comparison with the preceding week and with the corresponding date last year, will be found on subsequent pages, namely, pages 96 and 97. Changes in the amount of Reserve bank credit outstanding and in related items during the week and the year ended Dec. 30 1931 were as follows: Bills discounted Bills bought United States securities Other Reserve bank credit Dec.30 1931. $ 1,024.000.000 327,000.000 803,000,000 48,000,000 Increase (4-) or Decrease (—) Since Dec.231931. Dec. 31 1930. $ $ +113.000.000 +773.000.000 +70.000.000 —37.000.000 +45.000,000 +74.000.000 —31,000,000 +19,000,000 Money in circulation 5,633,000,000 —100,000,000 Member bank reserve balances 2 323,000,000 —322,000,000 Unexpended capital funds, non-member deposits, &t, 465,000,000 —31,000,000 +744.000.000 —148,000,000 +61.000,000 J.21932.] FINANCIAL CHRONICLE corporations and others than banks loans secured by stocks, bonds and acceptances. The present week's total of $591,000,000 is the lowest since Feb. 1 1918, when the amount was $510,179,000. CONDITION OF WEEKLY REPORTING MEMBER BANKS IN CENTRAL RESERVE CITIES. New York. Dec. 23 1931. Reserves with F. R. banks Cash in vault Net demand deposits Time deposits Government deposits Dec. 30 1931. Dec. 23 1931. Dec. 31 1930. Due from banks Due to banks Loans and investments—total 7,147,000,000 7,175,000,000 8,152,000,000 Borrowings from F. R banks Loans—total 4,492,000,000 4,420,000,000 5,859,000,000 On securities All other 1,526,000,000 292,000,000 Increase (-I-) or Decrease(—) Since Dec. 16 1931. Dec. 24 1930. $ —141,000,000 —246,000,000 +33,000,000 —26,000,000 11,771,000,000 —397,000,000 —1,832,000,000 5,947,000,000 —57,000,000 —1,179,000,000 345,000,000 *-203,000,000 +143,000,000 939,000,000 2,385,000,000 —73,000,000 —155,000,000 —468,000,000 —818,000,000 567,000,000 +175,000,000 +317,000,000 *Dec. 16 figures revised (Chicago district). 2,295,000,000 2,231,000,000 3,438,000,000 2 197,000,000 2,189,000,000 2,421,000,000 Investments—total 2,655,000,000 2,755,000,000 2,293,000,000 U. S. Government securities Other securities 1,712,000,000 1,778,000,000 1,182,000,000 943,000,000 977,000,000 1,111,000,000 Reserve with Federal Reserve bank Cash in vault 941,000,000 58,000,000 Net demand deposits Time deposits Government deposits 705,000,000 68,000,000 861,000,000 85,000,000 5 217,000,000 5,162,000,000 6,070,000,000 779,000,000 789,000,000 1,201,000,000 166,000,000 166,000,000 35,000,000 Due from banks Due to banks 71,000,000 900,000,000 Borrowings from Federal Reserve bank_ 289,000,000 Loans on scour, to brokers & dealers: For own account 544,000,000 For account of out-of-town banks- - 41,000,000 For account of others 6,000,000 Total On demand On time Loans and investments—total 49 57,000,000 132,000,000 864,000,000 1,317,000,000 98,000,000 9,000,000 553,000,000 1,321,000,000 51,000,000 235,000,000 7,000,000 370,000,000 591,000,000 611,000,000 1,926,000,000 442,000,000 149,000,000 451,000,000 1,446,000,000 160,000,000 480,000,000 Chicago. 1,584,000,000 1,597,000,000 1,978,000,000 Loans—total On securities All other 1,076,000,000 1,084,000,000 1,414,000,000 633,000,000 443,000,000 637,000,000 447,000,000 789,000,000 625,000,000 508,000,000 513,000,000 564,000,000 293,000,000 215,000,000 301,000,000 212,000,000 250,000,000 314,000,000 Reserve with Federal Reserve bank_ — - 154,000,000 Cash in vault 19,000,000 146,000,000 21,000,000 215,000,000 16,000,000 Inve8tments—total U. S. Government securities Other securities Net demand deposits Time deposits Government deposits Due from banks Duo to banks Borrowings from Federal Reserve bank_ 1,034,000,000 1,019,000,000 1,273,000,000 417,000,000 420,000,000 602,000,000 16,000,000 16,000,000 25,000,000 133,000,000 265,000,000 130,000,000 248,000,000 207,000,000 368,000,000 9,000,000 21,000,000 1,000,000 Complete Returns of the Member Banks of the Federal Reserve System for the Preceding Week As explained above, the statements for the New York and Chicago member banks are now given out on Thursday, simultaneously with the figures for the Reserve banks themselves, and covering the same week, instead of being held until the following Monday, before which time the statistics covering the entire body of reporting member banks in 101 cities cannot be got ready. In the following will be found the comments of the Federal Reserve Board respecting the returns of the entire body of reporting member banks of the Federal Reserve System for the week ended with the close of business on Dec. 23: The Federal Reserve Board's condition statement of weekly reporting member banks in leading cities on Dec. 23 shows decreases for the week o $229,000,000 in loans and investments, $141,000,000 in reserves with Federal Reserve banks, $397,000,000 in net demand deposits, $57,000,000 in time deposits and $203,000,000 in Government deposits, and an increase of $175.000,000 in borrowings from Federal Reserve banks. Loans on securities decreased $24,000,000 at reporting banks in the Chicago district, and Increased $20,000,000 in the New York district and $15,000,000 in the Boston district, all reporting banks showing a net decrease of $8,000.000. "All other" loans declined $56,000.000 in the New York district, $20,000,000 in the Boston district and $85,000,000 at all reporting banks. Holdings of U. S. Government securities declined $61.000,000 in the New York district, $14,000,000 in the Philadelphia district, $13,000,000 in the San Francisco district, $12,000,000 in the Cleveland district, $11,000,000 each in the Atlanta and Dallas districts and $128,000,000 at all reporting banks. Holdings of other securities declined $10,000,000 in the Boston district and $8,000,000 at all reporting member banks. Borrowings of weekly reporting member banks from Federal Reserve banks aggregated $567,000,000 on Dec. 23. the principal changes for the week being increases of $102,000,000 at the Federal Reserve Bank of New York, $16,000,000 each at Cleveland and Chicago, $15,000,000 at Boston, Congress Against Added Moratorium, Senator Watson Maintains—Legislative Leaders Seen Opposed to President Hoover on Debt Question—Basle Report Also Brings Statement by Senator Borah, Who Counsels Withdrawal of United States from Europe After Putting $45,000,000,000 in the Same. Hints in the Basle report that the state of German internal finances might necessitate extension of the moratorium on intergovernmental debt payments, to-day drew a strong expression of disapprobation from Senator Watson of Indiana, Republican floor leader, who piloted the resolution through the Senate. The Washington correspondent of the New York "Journal of Commerce" on Dec. 25 continued: Congress would have to undergo a "complete metamorphosis of opinion," Watson declared, before there would be the least probability of an agreement to "further reduction or cancellation of the World War debts owed thtis country by European nations." Watson's blunt assertion was of peculiar significance in view of the attitude of ti.e White House and State Department in connection with the vexed debt question. In his message on foreign affairs President Hoover stated: "It is clear that a number of governments indebted to us will be unable to meet further payments to us in full, pending recovery in their economic life. It is useless to blind ourselves to an obvious fact. Therefore, it will be necessary in some cases to make still further temporary adjustments." Stinson Backed Hoover. The State Department's participation in the moratorium controversy came Thursday when, as the President signed the resolution postponing the 1932 payments, Secretary Henry L. Stimson issued a statement warmly defending Hoover's right to conclude such international settlements, a procedure repeatedly challenged in the House and Senate debates on the enactment. That the White House and State Department are on one side of the fence, and many Administration leaders in Congress on the other as regards possible further debt postponement was made clearer by Watson's statement to-day. "The sentiment of the Congress, as among the many members with whom I have talked about the debt situation, is that if Europe does not want to pay her debts to the United States then she will have to repudiate them," he said. "The great wrong was done when we permitted foreign nations to mix the war debts due us with German reparations. These foreign nations have insisted they would pay us their debts as Germany paid them reparations. As a matter of fact, the German reparations have nothing to do with the debts owed this country. "The United States will consent to no reduction of debts unless these German reparations are cut away down or abandoned, and a pledge is given by the European nations to reduce their armament expenditures." Charges Arms Expenditures. Great Britain will eventually pay its debt to the United States, Watson went on, and France and Italy "without question" could have paid this year's installment, but preferred to spend such sums on armaments, he charged. Watson further put forward the view that the President would make no move toward debt revision or cancellation, despite his advocacy of re-creation of the World War Debt Funding Commission. In the House, Representative Collier of Mississippi, Chairman of the Ways and Means Committee and co-author with Senator Watson of the moratorium resolution, echoed the latter's views, declaring there could be no talk of revision at this time. Representative Rainey of Illinois, and Snell of New York, respectively Democratic and Republican floor leaders, went on record yesterday as equally opposed to cancellation, revision or further moratorium talk. In a statement, yesterday, Senator Borah of Idaho, Chairman of the Foreign Relations Committee, tersely advised the United States to "come out of Europe and stay out," if Europe could not see her way clear to end reparations and drastically cut armaments, by which he meant from 30 to 40%, he said. Urges Reparations End. "I can see no recovery in Europe until reparations are eliminated in their entirety," Borah commented upon the experts' report from Basle. "For 12 years conferences have been held, readjustments made, but none $14,000,000 at Philadelphia and $10,000,000 at Richmond. A summary of the principal assets and liabilities of weekly reporting has brought relief. For 12 years we have been told that this plan, or year ending week and the the during with changes together that plan, assured recovery, all based upon some temporary expedient memocr banks, Dec. 23 1931, follows regarding reparations, but no recovery came. Increase (+) or Decrease (—) "If Europe cannot see her way clear to end reparations and drastically Since Dec. 23 1931. Dec. 16 1931. Dec. 24 1930. cut armaments the United States had better come out of Europe and stay out. It will cost us something to come out, but it will bankrupt us Loans and Investments—total_ _20,734,000,000 —229,000,000 —2,251 000,000 to stay in. "Since 1915, in one way and another, we have put close to $45,000,000,000 —93,000,000 —3,081,000,000 13,119,000.000 Loans—total in Europe. It has not ended the economic crisis in Europe, and it has —2,046,000,000 —8,000,000 On securities,, 5,733.000,000 brought an economic crisis to the United States." —85,000,000 —1,035,000,000 All other 7,386,000,000 Senator Borah does not believe Europe will move as he indicated in regard +830,000,000 either to reparations or armaments, hence he counsels American withdrawal. Inveqtments--total 7,615,000,000 — 136,000,000 "We should do what we did before the war," he concluded. "Let them U.S. Government securities 4,208,000,000 —128,000,000 +1,052,000,000 Other securities 3,407,000,000 —8,000,000 —222,000,000 pursue their own course, while we pursue ours." 50 FINANCIAL CHRONICLE [VOL. 134. Representative Rainey Opposes Further Moratorium— Stock of Money in the Country Shows Slight Decrease, Suggests Preferential Tariffs Should Be Included. But Is Still Above Five and a Half-Billion Dollar Mark. The following is from the "United States Daily" of The Treasury Department at Washington has issued the Dec. 2S: Discussing developments abroad respecting reparations and foreign war customary monthly statement showing the stock of money debts to the United States, Representative Rainey (Dem.), of Carrollton, Ill., in the country and the amount in circulation after deducting majority leader of the House, stated orally Dec. 26 that any further extenthe moneys held in the United States Treasury and by Fedsion of moratorium to foreign debtors should be based on trade advantages to this country, particularly agriculture. He said he is opposed to further eral Reserve banks and agents. It is important to note moratorium. that beginning with the statement of Dec. 31 1927 several "Reciprocal tariff reductions ought to accompany debt moratoriums," he very important changes have been made. They are as said. "If the United States consents to any further moratoriums we should demand that they be based on tariff reductions, particularly on agricultural follows: (1) The statement is dated for the end of the month instead of for the first of the month; (2) gold held by Fedproducts from the United States. "France agreed to pay the so-called French spoliation claims, a hundred eral Reserve banks under earmark for foreign account is years ago, only on condition that France be accorded trade advantages. now excluded, and gold held abroad for Federal Reserve Wine was one of the principal exports of France at that time and France agreed to pay the spoliation claims if the United States would admit banks is now included; (3) minor coin (nickels and cents) French wines free of duty for a number of years. The United States agreed has been added. On this basis the figures, this time which and study might show advantages France received amounted to the claims are for Nov. 30 1931, show that the money in circulation France paid. at that date (including, of course, what is held in bank vaults of member banks of the Federal Reserve System) was Cancellation or Cut in Debts Opposed by Senator $5,536,142,677, as against 85,640,016,110 on Oct. 31 1931 Capper—World Agreement to Reduce Tariffs Urged and $4,660,315,130 on Nov. 30 1930, and comparing with by Senator Hull to Restore International Trade. $5,698,214,612 on Oct. 31 1920. Just before the outbreak Declaring himself against cancellation or scaling down of of the World War, that is, on June 30 1914, the total was debts owed this country by foreign nations, Senator Capper only $3,459,434,174 (revised). Thefollowing is the statement: (Rep.), of Kansas, Dec. 26 said that "Europe and the inter0 000000 C -a 4 CD 0.0000 0 On0000 national bankers, in selfish greed, are asking us to carry our M o ca 00,-,40 generosity too far." 114311 Would Close Security Markets. If the debts of a number of European governments are repudiated, if their standing is impaired, there will be no further markets for foreign securities. So the international bankers back the cry for debt cancellation. Looks as if Tom, Dick and Harry, here in America, had long been taken out on a great international snipe hunt. Now the question is, what are we going to do about it? We have already granted a year's moratorium. Now Europe is trying to make the moratorium permanent. And the international bankers are seconding the plea. Personally, I am of the opinion that generosity ceases to be a virtue and becomes a fault when carried too far. Europe and the international bankers, in selfish greed, are asking us to carry our generosity too far. ..g .. ,66 .-. B A 8 4 ISMONn ..4 OONCOM MO M 00.00.05 MN.COMM. Nr.N.40 .0 .... CO .... m M 0: . Nn040 .. N0000 ow.. tom 0000 492,811,570 M ei 2 46 .aa -i'a 001. n to.Mr. M 0, 7.581.626 4,555,978 3,191,408 1,237,410 11,049 18,746,310 5,983,761 -- , 04-neD nON. 0 0 010* E.* 6-4 . '4 E. 0 .4 VD -CO In CI m 0 N 4qChn ,e,m .' s •qw ..; V.MOV, MM * OONV*. .044.0.t4 a .0004 nOOON te 0 0.1 .3 Ci ON.N 6e; 4 e yi CO NOMM amom 000000.. .CON00.44 O000000.In 00.NDInN NMOOM . N0.NMV.ry Cr M 00;0, MN000m., 00M000010 04m0140-00 MCO...N.N 7,581,626 4.555.978 3,191,408 1,237,410 11,049 18,746,310 99,051,167 156,039,088 1,404,877,582 498,795,331 A to .00N .040M .0300 ODNOn **met..., .. MM.. 0.0...1.0 On . . 3.435,891,636 1.775,923,799 i 44N.MOIN '1, 04 -q01at erimcieco ! 0 !!!!! 0.000..00 r4.00 Cl 40l a ..mm-..... 0)et0y000 ON,. 40 CD 4M OD V* 0 e . CD V 4* 40N.; 0 r8E.4, 6c400 010004 1-4 00.0 Vttga, , 6 00000 . $.00.0 0: r : M6 6 C g M M.0 4 N N y N .. . 1 Nn0006 N.000. 4,0101000. 0...0000 00M0CIM M 4i 0.; . M M N 0 000N 000 0, 41,000000, —m.mr.. .4. ' `-' Cl n - tz ONODNO. r.:MMMM 0....,N Cht0M.NO CO1'M0I00. onoom.. 0.000000 CO CC u, ••-• tO 0 .. m,c. N00. Nner CONn 0 M Ci MOM 0104M 8W-i M.3 .. N 4.4..; 0 0000§0 MCONN 8 c000 M6a7M6 mCONN00 000=00 0 a;0 ci 66 ooee.00 0000100 00.1Ynn. N0MOODO a -4.46'a 4 0 0. 0 00.000 . 664: , a 4 ,...eecoo ce NNNOM 05 05 yi e .nocovy, commeoo eccoucmoce 6e4666 M.ONMN MOWO0O. ui ui 6 ci6 ci N.M.,.. 0010 01 9.062,005,781 8,451,218,043 8,479,620,8241 5.396,596,677 3,797.825,099, 1.007,084.4831 010Mty *INN. 0..,N 9,214.178,615 c3,970,010.748 2.268,735.369 i 0 156,039,088 1,404,877,582 d140,358,709 7,512,903,236 1,976,760,559 5,536,142,677 R-.0i.1,--Rei '0! AU Other money. MONEY OUTSIDE OF THE TREASURY. P.. tt c. t, t.) Total. Asked to Pay Too Much. It seems to a lot of us ordinary folks that after we paid for a good part of the war we had done our share. We forgave the actual war debts. But we ought not to be called upon to forgive post-war debts, to boot. To pay for the war, pay for rehabilitation, and pay for preparations for Europe's next big war—that seems too much of a load. I for one am opposed to the cancellation of these governmental debts. I am opposed to any further scaling down. If some European government cannot or will not pay, it is up to that government to repudiate its debts. Then, if it comes to us for further loans, we will know what to do about it. But that is not all the story by a good deal. Uncle Sam loaned a lot of money in Europe during and after the war. Then along came the international bankers and loaned a lot more. The money the Government loaned, if not repaid, will have to be paid by the taxpayers. The international bankers loaned investors' money by selling foreign bonds to their customers In this country. Owe More Than Three Billions. Germany, German municipalities, other governmental instrumentalities of Germany and German business interests owe Americans and American business institutions more than $3,000,000,000. There are said to be in all at least $7,000,000,000 worth of foreign securities held by American citizens. Now, as a creditor nation, we face the prospect of having to take our payment in merchandise; in the long run it is difficult, it not impossible, for a creditor nation to sell more exports than it buys imports. The international bankers who floated the securities are said to be largely out from under. Tom, Dick and Harry hold the securities. Financial experts get together and solemnly announce the only thing to do is for Uncle Sam to keep on playing Santa Claus. Otherwise, they assert, the debts cannot be paid. Germany may collapse. Then Europe as a whole is likely to crash. Not only Uncle Sam, but all the American Investors will lose out entirely. N . 00 MOn. .0.nerNtO OVN . N0 0 . Ci .90 . it , r4 V. Held for Federal Reserve Banks and Amts. Suggests Repudiation. Senator Capper made his comment in an address broadcast over W3fAL and associated stations of the Columbia Broadcasting System. "If some European government can not or will not pay, it is up to that government to repudiate its debts," the Kansas Senator asserted. "Then, if it comes to us for further loans, we will know what to do about it." An authorized summary of Senator Capper's address follows in full text: When the United States entered the war it supplied men and money liberally to its Allies. Four million were drafted into service; considerably more than 1,000,000 were sent overseas; more millions were on the road when the Armistice came. After the Armistice the United States Government continued pouring money into Europe. It went to France, Germany, Austria, the new countries—wherever money was needed for rehabilitation, for feeding the hungry, for stabilizing governments, your Uncle Sam supplied the need. %. Z Amt. Held in Res'oe Against Trust Against United States Gold and Silver Notes Certificates (vt (and Treasury Treasury soles Notes of 1890). 01 1890). Pointing out that many nations now have defaulted on debts payments, Mr. Hull added that "this calamitous situation, growing worse each week, is directly caused by the inability of these nations to effect a mutually profitable interchange of surplus products and thereby create favorable financial and trade balances with which to pay." 4 a 44 MONEY HELD IN THE TREASURY. Senator Hull (Dem.), of Tennessee, stated Dec. 26 that any discussion of debt reduction must be preceded by an international agreement to restore world trade by lowering tariffs. The "United States Daily" of Dec. 28, from which we quote, also stated: .11 ; . • Revised figures. or foreign coin other than that held by the Treasa Does not Include gold bullion banks and Federal Reserve agents. Gold held by Federal ury Federal Reserveearmark for foreign account Is excluded, and gold held abroad Reserve banks under Is included. for Federal Reserve banks included in the total since the money held In trust against b These amounts are not notes of 1890 Is included under gold coin gold and sliver certificates and Treasury respectively. silver dollars. standard and bullion and e The amount of money held In trust against gold and sliver certificates anti Treasury notes 01 1890 should be deducted from this total before combining it with total money outside of the Treasury to arrive at the stock of money in the United States. d This total Includes 870.081,138 gold deposited for the redemption of Federal Reserve notes ($851,030 in process of redemption). $29,633,067 lawful money de JAN. 2 1932.] FINANCIAL CHRONICLE Posited for the redemption of National bank notes ($18,687.795 in process of redemption, including notes chargeable to the retirement fund). $1,350 lawful money deposited for the retirement of additional circulation (Act of May 30 1908), and $16.138,706 lawful money deposited as a reserve for postal savings deposits. e Includes money held by the Cuban agency of the Federal Reserve Bank of Atlanta. I The money in circulation includes any paper currency held outside the continental limits of the United States. Note.—Gold certificates are secured dollar for dollar by gold held in the Treasury for their redemption; silver certificates are secured dollar for dollar by standard Sliver dollars held in the Treasury for their redemption; United States notes are secured by a gold reserve of $156,039,088 held In the Treasury. This reserve fund May also be used for the redemption of Treasury notes of 1890, which are also secured dollar for dollar by standard sliver dollars held in the Treasury: these notes are being canceled and retired on receipt. Federal Reserve notes are obligations of the United States and a first lien on all the assets of the issuing Federal Reserve Bank. Federal Reserve notes are secured by the deposit with Federal Reserve agents of a like amount of gold or of gold and such discounted or purchased paper as is eligible under the terms of the Federal Reserve Act. Federal Reserve banks must maintain a gold reserve of at least 40%, including the gold redemption fund which must be deposited with the United States Treasurer, against Federal Reserve notes in actual circulation. Lawful money has been deposited with the Treasurer of the United States for retirement of all outstanding Federal Reserve bank notes. National bank notes are secured by United States bonds except where lawful money has been deposited with the Treasurer of the United States for their retirement. A 5% fund is also maintained in lawful money with the Treasurer of the United States for the redemption of National bank notes secured by Government bonds. Norman H. Davis Named by President Hoover as Member of U. S. Delegation to Geneva Conference on Disarmament. On Dec. 29 President Hoover announced the appointment of Norman H. Davis, former Under-Secretary of State, as a member of America's delegation to the Geneva Arms Conference. Mr. Davis is the fourth delegate to the Conference chosen by President Hoover. The other members, as indicated in our issue of Dec. 26, page 4236, are Ambassador Charles G. Dawes, who will be Chairman; Mary Emma Woolley, President of Mount Holyoke College, and Senator Swanson, Democrat, Virginia, and Hugh S. Gibson, Ambassador to Belgium. Max Winkler on American Investments Abroad—Foreign Firlancing in U.S.in 1931 Smallest in Volume Since This Country Assumed Role of Creditor Power. Max Winkler, of Bertron, Griscom & Co., presents, as follows, under date of Dec. 22, his latest study of American Investments abroad: Foreign financing effected in the United States in 1931 was the smallest recorded in any year ever since America assumed the role of a creditor power. The total of foreign government, State and municipal loans, as well as corporate securities publicly sold and privately placed in the United States, together with so-called direct investments made abroad by American interests, aggregated $511,289,150 as compared with $1,550,056,000 in 1930, a decline of more than 67%. These figures are exclusive of refunding operations, and represent net capital. Europe once again heads the list with $197,748,900 as compared with $565,222,000 in 1930. The Dominion of Canada ranks second with $162,499,000; South America holds third place with $74,391,250, followed by Central America with $31,200,000, and Australasia, chiefly Japan, with $38,550,000. Flotations on behalf of United States territorial possessions, RS well as corporate investments in enterprises located therein, amounted for the year which has just come to a close to $5,650,000, while miscellaneous investments accounted for $6,250,000. A comparison of American financing during the past two years is presented hereunder: Region. 1931. 1930. Decline. $565,222,000 446.461.000 341,687,000 65.04% 63.60% 78.62% 68.454,000 88,472.000 12,376.000 27,384,000 56.22% 61.00% 54.24% 70.44% 8511.289.150 51.550.056.000 67.02% Europe $197,748,900 Canada 162,499,000 South America 74,391,250 Central America (Including Mexico. Cuba and West Indies) 31,200.000 Australasia 33,550.000 United States Territories 5,650.000 Miscellaneous 6,250,000 Total Details of last year's transactions are presented in the subjo ned table: 'Region. Amount Issued. Amount Refunded. NU Amount. Europe-Governments, states & municipalities $102.325,000 Corporations 138,497.900 $42,774,000 300.000 559,5510)0 138,197.900 Total Europe $240,822,900 Canada— Governml, provinces & municipalit's $135,227,000 Corporations 82,222.000 $43,074,000 $197.748.900 $54.450,000 500,000 $80,777,000 81,722.000 Total Canada $217,449.000 South America— Governments, states & municipalities $79,380.000 40,011,250 Corporations $54,950,000 $162,499,000 $45,000,000 $34,380,000 40,011,250 $119,391,250 $45,000.000 874.391,250 Governments, states az municipalities Corporations $37,650,000 20,350,000 $21,800,000 5.000.000 315,850.000 15,350,000 Total Central America Australasia— Corporations United States Territories— Governments Corporations 858,000,000 826,800.000 831,200,000 Total South America Central America (Including Mexico. Cuba and 1Vest Indies)— Total U. S. Territories Miscellaneous (Corporations) $33,550,000 $33.550.000 3650.000 5,000.000 8650.000 5,000.000 55,650.000 6.250.000 $5,650.000 6.250.000 8164,024,000 5,800.000 3191.208,000 320,081,150 8e81,113.150 8169.824.000 3511,289.150 Allowing for refunding and sinking fund operations, as well as repurchases and redemptions of existing investments, the net addition to America's foreign investments amounted to $425,202,000, bringing America's total stake abroad, as of Dec. 81 1931, to $17,953,456,000, distributed as follows: Jan. 1 19144 Jan. 1 1932. Jan. 1 1931. Canada South America Central America Australasia Miscellaneous $5,765,532,000 4,601,118,000 3,065,220,000 3,015,445.000 1,010.601.000 495,540,000 $5,607,332,000 4,436.011.000 3,013,935,000 2,985,135.000 995.051.000 490,790.000 $350,000,000 750,000.000 100,000.000 1,200,000.000 175,000,000 50,000,000 TntaL 5l7053458.000 517.528.254.000 $2.625.000.000 Region. Europe Economists at Washington Urge Gold Pool to Speed Recovery—Favor World Fund to Ease Credit Stringency. The international gold and economic situation was scrutinized by the American Statistical Association at its annual meeting in Washington on Dec. 28 and the suggestion was made that concentration of a portion of the world's gold into a fund or some other measure of similar character to make this metal a more fluid currency base might be advisable. This is noted in a Washington dispatch to the New York "Journal of Commerce" from which we also take the following: Breakdown of the gold standard In many countries has contributed to the continuation of the depression, according to J. Parke Young, economist of Los Angeles. Immediate reconstruction of the gold standard where at all possible was advocated. The gathering of the statistical association is a section of the general conference of 4.000 economic experts, colege professors, labor leaders and officials assembled here. Stresses Credit Phase. Mr.Young said that in order to avoid undue strain on the gold mechanisn1 and to facilitate settling of international balances "attention must be directed to the further development of credit devices," according to this authority. "The concentration of a part of the world's gold In an international fund, if such were possible, and the grant of credits on this fund to central banks would help provide elasticity in the making of international settlements," Mr. /bung said. "At the same time such a concentration should help to provide against a possible fall in the price level should a shortage of gold develop." However,Mr. Young admitted that there might lie a possible danger in such an arrangement, if credits granted to central banks were used to perpetrate unsound credit conditions within a country, rather than to tide the country over the emergency period. Walter E. Spahr of New York, insisted that the claims frequently made charging the depression to gold shortage "hardly seems justifiable." Discusses Cause of Slump. "The maldistribution of gold would seem to have been a symptom and a result of other more fundamental causes rather than the chief cause as some apparently believe." Mr. Spahr remarked. Among the causes of depression listed by this expert were inflation caused by the war, devaluation of currencies, war debts and reparations payments, obstruction of trade by tariff barriers, maladjustment in price fixing and market control and excessive instalment purchasing. An international clearing house to enhance the efficiency of world banking operations was recommended by Mr. Spahr. Perry E. Barbour, New York consulting engineer, declared that world gold production would increase as long as commodity prices are low enough to make gold mining profitable. Metal Diversity Urged for Coins—Advocate Cornell Economists—Believe Change Would Be Step in Overcoming Depression. Use of two or three metals in coins and the reduction of metal in the money units are suggested depression preventives advanced by Professor G. W. Warren and Professor F. A. Pearson,economists of Cornell University said an Associated Press dispatch Dec. 28 from Washington published in the New York "Evening Post" in which it was also stated: In a paper prepared for the meeting of the American Farm Economic Association to-day the Ithaca professors said conditions in the gold market retard recovery from the depression. A reduced demand for gold, they said, would decrease its value and to a certain extent raise the price level. The economists declared the two or three metals used as moneys should not be employed as laternatives but should be combined in the coins. The Cornell economists said "emergency measures, intended to aid certain groups, who still have the erroneous belief that the present distress is caused by over-production, are bound to result in bitterness and disappointment." Professors Warren and Pearson, holding that over-production did not cause the depression, declared present industrial activity is between 30 and 40% below normal, whereas production was not excessive in 1929, being but 3% above normal. The paper included a recommendation for a definite legal provision for a bank policy that will attempt to stabilize prices under the present bank system. Total Govta„. states as municipalities $355,232,000 325,881,150 Total corporations Grand Total 51 Canadian Exchange Problem Studied at Ottawa with Bankers' Aid—Possibility of Canada Having Its Own Exchange Market, Making Unnecessary Dependence on New York for International Settlements. The Toronto "Globe" of Dec. 17 published the following from Ottawa Dec. 16: Premier Bennett conferred to-day with Sir Charles Gordon, President of the Bank of Montreal, and other representative bankers concerning the financial situation. While no statement was given out by either the Prime 52 FINANCIAL CHRONICLE Minister or the bankers, it is understood one of the matters under consideration was the exchange situation and the need for some corrective measures. There is a possibility that Canada eventually will have it own exchange market, so that the present dependence on New York for international financial settlements will no longer be necessary. Arrangements for such facilities, of course, cannot be made overnight, particularly at a time when foreign exchange and currencies throughout the world are fluctuating from day to day. The bankers gave the Prime Minister the benefit of their views, it is understood, and the policy to be adopted will be decided in due time. Canada has maturities totalling some $360,000,000 in the United States next year. These are for Dominion, Provincial, municipal, Government and railway financing, and it is not proposed to pay a premium of 20% Indefinitely. Action to correct that present adverse exchange situation may. therefore, be expected in the near future. [VOL. 134. Journal" of Dec. 22 1931, world production of silver during the first nine months of 1931 amounted to 125,005,000 fine ounces as compared with 161,871,000 for the first three quarters of 1930, a decrease of 36,866,000 ounces, or 22.77%. The "Journal" further reports in substance: Production of silver in the United States in November 1931 reached the lowest figure for recent years. Total production for that month amounted to 2,012,000 ounces as compared with 2,181,000 ounces in October 1931 and 3,738,000 ounces in November 1930. Canadian mines produced 1,659,000 ounces in November 1931 compared with 2.117.000 ounces in October and 1,412,000 ounces in November of the preceding year. Latest figures available for Mexico, however, show an increase to 7,510,000 ounces for September 1931 from 6,814,000 ounces in August. Mexican production in September 1930, amounted to 9,154.000 ounces. Peruvian output for 1931 amounted to 578,000 ounces compared Canadian Press advices from Ottawa Dec. 16, referring to with 609,000 ouncesNovember in October 1930 and 677,000 ounces for November 1930. October 1931 output for Burma, the latest available, amounted to the conference, said: One authority has said that if Canadian drafts and cables on London 470,000 ounces compared with 460,000 in September and 560.000 in were handled directly from Canada and not through New York, as is now October,last year. Australia jumped to 561,000 ounces in November from the only procedure, the Canadian dollar would be selling in New York to- 433,000 in October. The following table shows, in thousands of fine ounces, the total proday at 90 cents, instead of81 cents. Much of the discount on the Canadian dollar is due to the depreciation of the pound sterling, the experts say. duction in stated periods in 1931 and in corresponding periods in 1930: The value of the Canadian dollar is largely determined by the sterling • exchange rates in New York. 1931. Decline. d1930. Canada sells more to Great Britain than she buys from the mother 29,110 46,521 33.12% country and at the same time buys more from the United States than she United States a a 17,763 21,404 17.01% sells to that country. The monetary exchange between Canada and Great Canada Mexico b 66,869 79,122 15.48% Britain is entirely through New York. The Canadian balances in Britain Peru a 10,377 16,126 85.65% 6,546 so to New York to help make up for the Canadian adverse trade balance Australia a 8,180 19.97% c 4,960 5,913 16.13% and interest payments in the United States. When the British pound Burma World b 125.005 181.871 22.77% depreciates the Canadian dollar is depressed with it. Canadian funds, a Eleven months. c months. b Nine Ten months. d In 1930 these countries however, remain somewhat stronger than sterling. produced about 87% of the total world output. The view here is that the Canadian dollar is much lower in New York Actual consumption of silver, as recorded by shipments from New than it should be if the exchange were based on the hard facts of economics. Canada has a favorable world trade balance. It has some receipts in inter- York, San Francisco and London to the Far East for the first 11 months est from Canadian investments abroad. It has extensive returns from of 1931, has run far below the corresponding period last year. Total tourist traffic. However, when there is a big demand for New York funds shipments from New York during this period amounted to 55,482.000 by Canadians the law of supply and demand comes in and the premium on ounces compared with 75,786,000 ounces in the same period last year. The reduction is due almost entirely to the samli demand from China. New York funds mounts. Of shipments from New York, 17,544.000 ounces were sent to England and Germany compared with 6,987,000 ounces in the first 11 months of Canadians Facing Extra Cost in Repayment of Maturing 1930: 19,183,000 ounces to India, against 18,278,000 ounces: 18,563,000 ounces to China against 50,439,000 ounces, and other shipmentssincreased Loans in New York. to 192,000 ounces from 82.000 ounces. The following is from the New York "Times" of Dec. 20: A marked falling off in Chinese demand is shown also in reports from Owing to the sharp decline in the Canadian dollar, which is quoted San Francisco. Total shipmentsfrom that port during this period amounted to 19,650.000 011110218 compared with 44,475.000 ounces last year. Of this here at a discount of approximately 20%, officials of several Canadian Provinces with bonds maturing early next year are faced with the prospect amount, China took 14,531,000 ounces against 43,718,000 ounces in 1930. Total exports of silver from London to the Far East in 1931 up to Dec. of paying out more than the principal amount of the loans, since the bonds are payable in New York or Canadian funds at the option of the holder. 2 were valued at £3,881,104. This compares with £7,024,089 for the full If refunding loans could be obtained in New York and the sums paid to year 1930, £5,109,170 for 1929 and £6,524,533 for 1928. Here again, a the Provinces in American dollars, the situation would automatically be decline in Chinese consumption was particularly marked, total shipments cleared up, but the present low prices here for Canadian loans makes such amounting to £872,729 compared with £1,363,349 in 1930. Shipments to India *ere valued at £2,956,962 compared with £5,648,236, while exports a step difficult. The Province of Alberta has an issue of about $2,000,000 one-year to the Straits Settlements increased to £51,413 from £12.504 in 1930 and s% notes due on Jan. 15 and on Jan. 16 the Province of New Brunswick none in 1929. will have a maturity of $1,890,000 of 534s. On Feb. 16 the Province of Saskatchewan will have $3,000,000 of ono -year 3 % notes falling due. Bank of France Dividend. Other maturities early next year of the Provinces of Ontario and British The following from Paris is from the "Wall Street Journal' Columbia are serial and are expected to be met without the marketing of refunding issues. of Dec. 28: Bank of France has declared dividend of 150 francs net for the secon Exchange Value of Pound Sterling in Canada Fixed half of the current year which, together with 235 francs for the first half makes a total dividend of 385 francs for the entire year compared with for Duty Purposes Until March 311932. 620 francs in 1930, 529 in 1929 and 350 in 1928. Under date of Dec. 24 Canadian Press advices from Ottawa said: The fixed value of $4.40 for the pound sterling for special duty purposes will prevail up to and including March 31 1932, according to an announcement from the Department of National Revenue to -day. When this value was fixed by the Government last October,it was stated it would continue until the end of the present year. The extension now accorded wlll make the present "pegged" value operative until the end of the fiscal year. Coincident with to-day's announcement, it was given out by the Department that the "average value of the pound sterling for special duty purpose" will be $4.14, effective for entries at customs during the period from Jan. 1 to Jan. 15. This will make applicable a special duty of26 cents between those dates. Paris Bank of the Union Omits Final Dividend. Banque de l'Union Parisienne has voted to omit the usual year-end dividend payment, according to a Paris cablegram to the "Wall Street Journal" of Dec. 28. Central European Countries Effect Foreign Exchange Clearing Arrangements—Switzerland, Hungary and Austria Sign Agreements. In its Dec. 28 issue the "Wall Street Journal" reported the following from its Paris bureau: Restrictions on foreign exchange dealings, imposed with extreme rigor by most of the central European countries, have clogged the wheels of trade badly, and Switzerland, which carries on considerable trade with Central Europe, has therefore taken steps to remedy the situation so far as possible by central-bank agreements involving clearing-house arrangeAlthough since September the Mint has been operating at full capacity, ments for payments of merchandise exchanges. Such agreements have there Is still a shortage of copper coins in Canada. This shortage, it was been signed with Hungary and Austria on the following basis: explained at the Mint, will correct itself after Christmas. It is attributed Buyers of Hungarian or Austrian goods in Switzerland pay their bills In:part to withdrawals of United States pennies from circulation in Canada. in Swiss francs, placed to a joint account administered by the national Swiss bank for the Hungarian or Austrian National Bank, and similarly Toronto Stock Exchange and Standard Stock and Hungarian or Austrian buyers of Swiss goods pay for them in pengo or schillings at their own national banks. Mining Exchange Plan Closer Working Agreement. To the extent that funds are available in these accounts, the national banks will then pay the exporters in their currencies at the rate of the day. From Toronto Dec. 21 Canadian Press accounts said: With a view to arriving at a closer working agreement, members of the So long, for instance, as the total of Swiss franca paid into the joint account Toronto Stock Exchange and members of the Standard Stock and Mining by Swiss importers of Hungarian goods does not attain the total due to Exchange will meet separately next week to consider certain proposals. Hungary for import of Swiss goods, only a third of the Swiss francs will be One of these is that the Stock Exchange shall remove mining stocks from paid out, the other two-thirds being placed at the disposal of the Hungarian its list and in return athe Mining Exchnge shall remove industrial stocks bank; as soon as the total of Swiss francs paid in at the Swiss National Bankattains the total due from Hungarian importers of Swiss goods, one-quarter from its list. of the sum will be paid the latter and three-quarters placed at disposal of Hungarian National Bank. World Output of Silver Totaled 125,005,000 Fine Ounces theSwitzerland undertakes to develop imports from Hungary in order to During First Nine Months of 1931, a Decline of expedite settlement of old Swiss claims on Hungarian importers. The with Austria and Hungary are valid for four months but re22.77% as Compared With the Same Period in agreements newable for similar periods. Shortage of Copper Coins in Canada Attributed to Withdrawal from Canada of United States Pennies. Canadian Press accounts from Ottawa Dec. 24 said: 1930—November Production in the United States Regarding the agreements the Department of Commerce Exceeded That of Previous Month. at Washington issued the following announcement Dec. 23: According to the figures released by the American Bureau Foreign exchange clearing arrangements between Austria and Switzerøf Metal Statistics, and published in the "Wall Street land became effective Dec. 10, while similar arrangements were made by JAN. 2 1932.] FINANCIAL CHRONICLE Austria with Hungary Dec. 15, according to a cable from Commercial Attache Gardner Richardson, Vienna, in a report to the Department of Commerce. The Hungarian arrangements provided that Austria would pay foreign exchange for 45,000 tons of Hungarian cereals in the next three months. Proceedings with Jugoslavia are proceeding slowly, while those with Poland have been suspended, and those with Czechoslovakia have been broken off. Germany is reported to be definitely opposed to such arrangements, the cable states. The statement of the Austrian National Bank for Dec. 7, showed a decrease of $05,000 in foreign exchange holdings, indicating that there is no prospect of an increase in exchange allocations. Restrictions were further tightened by decree prohibiting exports of scrap copper and similar metals without permission, the cable report stated. German Trade Pacts Take Effect Jan. 1—New Agreements with Austria, Hungary and Rumania Provide for Minor Modifications—Some Austrian Duties Raised. A cablegram from Berlin Dec.23 to the New York "Times" said: New German trade agreements with Austria, Rumania and Hungary providing for some minor modifications will go into effect Jan. 1, it was announced to-day. While insignificant as to the changes they contain, the new agreements mark the definite burial of two broadly-conceived attempts at a solution of the European tariff problem. The Austro-German agreement again puts into effect the accord which was in force before the customs union was declared, and there is a touch of irony in the fact that instead of tearing down tariff walls as proposed the new agreement, in its only new provisions, raises the Austrian duties on Pencils and lowers the Austrian import quota on wood. The agreements with Hungary and Rumania replace preferential tariff rates which could not be put into effect because several countries failed to agree. German Steel Prices Cut—But Reduction Still Leaves Domestic Prices Above Foreign. A Berlin message Dec.24 to the New York "Times" stated: All domestic German prices of steel have been reduced 10%, and pig Iron prices have been cut by 12 to 14%. The steel syndicate proposes in addition to give a price rebate of five marks per ton to consumers who undertake to buy only home-produced steel. Consumers demand in addition a price rebate to 10%, and without any such undertaking they argue that home prices, even after the pending cut, remain very far above foreign markets. The home price of steel bars, even after the recent reduction, is 115 millions per ton, whereas the Belgian export price is only 55 marks. President von Hindenburg of Germany Issues New Order Bearing on Emergency Decree of Dec. 8. Associated Press accounts from Berlin, Dec. 23 stated: President von Ilindenburg to-day signed a "little emergency decree" explaining the tangled paragraphs of the decree issued Dec. 8. The new order also was aimed at smuggling, which has assumed large proportions. The decree forbids the erection of buildings within 55 yards of frontiers without special permission of customs officials. 53 The object of the Hungarian Government decree was to protect the already diminished gold reserves of Hungary and to sustain the value of Hungarian currency (the pengo) in the face of a balance of debits and credits now heavily against Hungary. The decree establishes a one-year moratorium during which the Hungarian Government will exercise strict control over the payments made on external obligations. The service of the loan issued in 1924 for reconstruction purposes, for which the League of Nations acts as trustee for the bondholders, is to be continued in full in foreign currencies. The service of other external longterm debts, whether State, municipal, mortgage, corporate or otherwise, as well as the service on the short-term treasury bills and treasury bonds, Is to be paid by the respective debtor (whether public or private) in the first Instance in Hungarian currency which is to be deposited at the Hungarian National Bank and there to constitute a "foreign creditors' fund." Conversions of the Hungarian currency in this fund into foreign funds for the purpose of meeting in whole or part these obligations will be made to the extent that it is judged possible without endangering the economic life and financial system. A separate fund of a similar nature is to be set up for the service of the private short-term loans, applying to both the interest on these loans and their repayment at maturity. In regard to maturity the Hungarian Government is seeking to arrange with its creditors on short term a standstill agreement covering six months. The difficulties faced by the Hungarian Government in meeting the full service of external obligations are genuine and this plan, by preserving monetary stability and a systematic plan for handling the debts, may prove to strengthen the condition of the creditors rather than otherwise. Naturally the moratorium has been preceded by various measures controlling commerce. It is to be strongly hoped that in the operation of these measures no preference will be shown to Hungarian interest as compared with foreign interests. Hungary has made an earnest effort to manage its affairs since the days of post-war inflation. It is to be hoped that a revival of world trade will enable it once again to meet its foreign obligations in full. This is a conservative method of dealing with foreign obligations which temporarily have become too heavy. A rough total approximation of American investment in Hungary (drawn mainly from Department of Commerce figures) is as follows: League of Nations loan__ $7,300,000 Government guaranteed Private corporate bonds_ 60,400,000 corporate bonds $17,700,000 Municipal bonds 24,000,000 Short-term Treas'y bonds 5,000,000 $134,400,000 Total All of these securities with the exception of the last are held by the ordinary investor in the United States, individual or institutional. The last Item, short-term Treasury bonds, are probably all held by larger Institutions. As regards the short-term private debt, the New York "Times" of Dec.23 estimates that the American portion, apart from the central banking credit. is approximately $35,000.000. This is in all probability held by various types of banking institutions. The "direct" investment of Americans in Hungarian properties is estimated roughly to be $9,500,000. It must be understood that this is merely a rough summary estimate of the amounts of American capital the service on which may be affected one way or another by the moratorium. It must not be taken in any way to be an estimate of loss. The system inaugurated of payment of debt service in currency of the debtor country with a temporary suspension of transfer to the foreign creditor for one year is the system already being employed by several other countries which cannot find the necessary foreign funds. This may happen even when the individual debtor is thoroughly solvent. An item regarding the possibility of a moratorium on The Dec. 8 decree was referred to in our issue of Dec. 12, Hungarian loans appeared in our issue of Dec. 19, page. 4083. page 3894. Moratorium Declared by Hungarian Government on Hungary's Action in Declaring Moratorium Discounted in Wall Street—Principal Foreign Obligations. Foreign Debts—Statements Issued at Washington Stating that the declaration on Dec. 22 of a moratorium —American Investment in Hungary. In our issue of Dec. 26 (page 4245) we referred to the on the foreign debts of Hungary had been expected in Wall action of the Hungarian Government in declaring a year's Street for several weeks, in view of the recognized inability moratorium on foreign debts. Announcements in the matter of the country to obtain sufficient foreign exchange to issued by the State Department at Washington are given in effect the transfer of payments to creditors abroad in curthe following, which we take from the "United States rencies acceptable to them, the New York "Times" of Dec. 23 said: Daily" of Dec. 24: The announcement of the moratorium had been so thoroughly discounted Hungary has notified the United States that she has declared a year's moratorium on all her debt payments, the Department of State announced Dec. 23. Payments of interest will be made to the Hungarian National Bank and will remain there on deposit. They will not be transferred outside of the country due to the difficulty of buying foreign currencies at much higher rates of exchange. The Department's announcement follows in full text: The American Charge d'Affaires at Budapest, Rudolf E. Schoenfeld. telegraphed the Department of State to-day that a decree of the Hungairan Government providing for one year's transfer suspension of Hungary's payments on foreign debts were issued to-day. In this connection the Hungarian Minister, Count Laszlo Szechenyi, Called at the Department of State on Dec. 22, and left the following aide memoire: "The Hungarian Government's financial program provided for one year beginning Dec. 23 1931. The League of Nations loan will be paid in foreign currency as before. "Other loans. The first category—composed of long-term loans assured by special securities, for instance, the Government Treasury bonds issued in 1931, and those which are based on international conventions, for instance, the Caisse Commune payments, to the extent that foreign currencies are available. "The second category is composed of long-term loans which do not belong to the first category. "These will be deposited in the National Bank of Hungary in Hungarian currency (pengoes). "The Hungarian National Bank in accordance with the League of Nations Councilor will administer these sums and consult the representative of the creditors appointed by them. "As far as short-term loans are concerned, in case commercial business makes it necessary, debtors will be provided with the necessary foreign currency to enable them to pay interest. "The Government's intention is to reach six months 'Stillhalte' agreements for short-term loans." The background of the Hungarian moratorium situation as obtained orally at the Department_of State may be summarized as follows: in financial circles that it occasioned little comment among bankers yesterday, and was without any apparent effect upon the security markets apart from declines of 23/i to 9 points in listed Hungarian bonds. The principal foreign obligations of Hungary of interest to this market consist of the 7%% State loan of 1924; the so-called League of Nations loan, of which $45,620,000 is outstanding, the American portion being $7,315,000; the secured relief3%% loan, of which $1,900,000 is outstanding; the 53j% secured Treasury bills, of which $37,170,000 are outstanding, the American portion being $5,000,000; the 334% Caise Commune loan, outstanding in the amount of $2.400,000, and the Austro-Hungarian State Railway loan, outstanding to the extent of $12,800,000. According to the official announcement of the Hungarian Government. transmitted to bankers here yesterday, it is proposed to apply the foreign currency at the disposal of the country to the service on the 73 % State loan of 1924 and then, as far as the supply of foreign exchange permits, to the secured relief loan, the secured Treasury bills. the Caise Commune. the Austro-Hungarian State Railway loan and various other debts,including the central banking credit extended last August. Foreign exchange available will not be sufficient, it is recognized, to take care of all the issues mentioned, but the intention is to make use of all foreign exchange obtained to make payments on the loans under a definite order of precedence. Bankers here are confident that service on the State oan of 1924 will be maintained. Bankers estimated yesterday that the total of foreign short-term banking advances to Hungary, apart from the $20,000,000 central banking credit to the Hungarian National Bank, amounts to about $90,000,000, of which about $35,000,000 has been lent by American institutions. Of the latter amount,$18,000,000 lain the form of acceptance credits, which are covered by the "standstill" agreement recently concluded. The central banking credit to the Hungarian National Bank was extended last August as part of the effort of the Bank for International Settlements, together with the Bank of France, the Bank of England and the Federal Reserve Banks, to relieve the Central European financial crisis. It was 54 FINANCIAL CHRONICLE enewed last week for an unspecified period. The Federal Reserve Banks participated in the credit to an amount generally estimated at $4,000.000. Quotations of the Hungarian pengo in the foreign exchange market, which have been nominal for some months, were unaffected by yesterday's announcement, continuing at 17.42 cents, against parity of 17.49 cents. According to data recently published abroad in connection with the investigation by the League of Nations of Hungary's finances, the total foreign debt of Hungary is $715,000,000, of which $455,000,000 is at long term and $260,000,000 at short term. Of the medium and short term debt. it was estimated that $175,000,000 would fall due within the next twelve months. Expect Proposal on Hungarian Debt—Government to Offer New "Stillhaltung" Terms to Continue Imports. The following is from the New York "Journal of Cornmerce" of Dee. 24: The declaration on Tuesday (Dec. 22) of a moratorium on foreign payments by the Hungarian Government did not meet with an unfavorable reaction in Wall Street yesterday. The difficult financial position of Hungary with respect to foreign exchange had been realized in financial quarters for months. Prices on Hungarian bonds had been moving steadily dowward and were fairly steady yesterday. It was noted that the announcement by the Hungarian Finance Minister stated that the National bank would sell foreign exchange to Hungarian nationals for meeting interest, discount and commission charges to foreign banks and for giving effect to standstill agreements on commercial debts. Import Payments. In banking quarters it was held that the statement of the Finance Minister in no way indicates that exchange will not be relea,sed in order to make payments on necessary importations. The sale of exchange by the National Bank of Hungary, it was said, would in effect set up a system of foreign exchange control. Previous experience with such systems, it was said, would indicate that necessary importations with due payment on them would continue. Local bankers yesterday had not received exact information upon the status of the Hungarian "Stillhaltung"agreement under the moratorium. After such information is received it is understood that, unless the agreements are to be given up, exports to Hungary would be financed in accordance with standstill arrangements and the National bank's use of foreign exchange for commercial purposes. The statement of the Finance Minister indicated that the Hungarian Government will propose a standstill agreement for a period of six months. The terms of the agreement which had just been reached was for a period of three months. In view of the existence of the moratorium it was considered likely that with a few amendments, the bankers would accept a six-month instead of a three-month period. [VOL. 134. in sufficient tonnage to satisfy the needs of French agriculture and industry." The cablegram continues: The communique was vague and the Ministry refused further details, which were eagerly sought by American, Chilean and Norwegian circles, diplomatic as well as commercial. During the negotiations there were charges of discrimination and fears that the terms of sale would involve a controversy over the Hoover moratorium. Also involved was French War Office opposition to the buying of a vital war supply from the former arch enemy after buying from Chile for a century. To-day's statement said the purchases would be supplementary to the tonnage already imported from Chile. That amounted to 209,000 tons, all of which the Chileans sold the French agriculturists recently. However, 160,000 tons of that supply were being held, as for the past century, at the disposal of the War Office. Since France's total annual needs of nitrates run between 350,000 and 400,000 tons, presumably the accord with Germany calls for a supply of from 150,000 to 200,000 tons, from which the War Office must now get its reserves, and it is understood that the members of this office and many Deputies do not relish the idea. As the Government has not issued figures, the three other great foreign producers still retain a hope of getting a share of the purchases. It is known they have offered to establish the War Office with stocks free of all costs if granted licenses to an equal amount. It is also known that Germany, unless her capacity has increased greatly recently, cannot furnish more than 100,000 tons. To-day's accord was signed between the French and German nitrogen offices, both semi-governmental. The supply will come through the German Chemical Trust, I. G. Farbenindustrie covering the "nitrate year" of 1932, which Is about from Jan. 20 to Sept. 1. The communique merely says the deal will permit the French agriculturist to get nitrate fertilizer at a price 10 francs (about 40 cents) per 220 pounds lower than the current rate. The present price of 105 francs was set at the request of the French nitrogen industry last August, so the new price will be 95. However, it is understood that Germany's selling price is 83, the difference going to form a virtual subvention to the French nitrate industry. Technically, the Germans are not paying a subsidy, hence there is no basis for a protest by the United States, Chile and Norway, but the circles interested here say the controversy is only beginning. Death of Arthur von Gwinner, Chairman of the Deutsche Bank & Discontogesellschaft. At Berlin on Dec. 29 the death occurred of Arthur von Gwinner, Chairman of the Deutsche Bank & Discontogesellschaft. Mr. von Gwinner, who was 76 years of age, was connected with the Speyer family, having married Budapest Papers Warn of Long Delay in Hungarian Anna Speyer, a cousin of James Speyer of the banking firm Payment—Say Nation Cannot Meet Its Debts for of Speyer & Co. of this city; she was a daughter of Philip Two or Three Years. Speyer (uncle of James Speyer), who came to New York in Budapest advices as follows Dec. 24 are taken from the 1837 and founded the Speyer firm. From the New York New York "Times": Budapest newspapers, commenting on the transfer moratorium declared "Herald Tribune" we take the following regarding Mr. von yesterday by the Government, warn foreign creditors they must not expect Gwinner: repayment of their $160,000,000 in short-term loans for two or three years, Dean of Nation's Financiers. and thus must be ready to transform them into long-term obligations. Arthur von Gwinner was recognized as the dean of the German financial American banks have $39,000,000 invested in short-term loans in Hungary, world. His career extended over many changing eras in the history of his which, according to Budapest newspapers, are "irremediably frozen" for country, and in all of them he was either called upon to guide and direct some time to come. or at least to serve as one of the chief consultants on Germany's financial It is being urged that the interest rate on long-term obligations be reduced policy. During nearly 50 years of such service his ability as a financial from an average of 8% to a maximum of 4%. expert came to be known outside of his native country through the assistance The announcement of the moratorium caused no excitement on the which he gave in directing the finances of international railroads and a Budapest Stock Exchange, but from some parts of the provinces higher myriad of industrial projects. prices were being quoted to-day for farm products, especially wheat. Herr von Gwinner was born the son of a burgher family at Frankfort. He Complaints are beginning to be heard in Hungarian commercial circles went to school there, attended the University of Frankfort. and at the that the provision whereby those two-thirds of Hungary's foreign obliga- completion of his formal education he entered the banking business in his tions to which the transfer moratorium applies are to be deposited by native city. He rose rapidly in this service and was sent successively as debtors in pengoes at the National Bank will rob Hungarian industry of fiscal agent of the Frankfort banking house to Spain and to England. this money. Either a complete moratorium should be declared, it is asReturning from these foreign assignments, he established a banking serted, or the money to be placed in trust with the National Bank should house in his own name which proved extremely successful. Herr von be made available for purposes of domestic trade. Gwinner directed his attention toward the development of international business for his firm, particularly in England. Austria Bars Foreign Travel Funds. The following (Associated Press) from Vienna, Dec. 23, Is from the New York "Times": A virtual moratorium on foreign travel by Austrians was put into effect to-day. The National Bank fixed a new maximum of $1.40 as the amount of foreign currency an Austrian with an ordinary railroad ticket to a foreign point might buy with schillings. Hungary Would Use Funds—Proposal Made That Sums Held for Debtors Be Loaned to Industry. A Budapest cablegram Dec. 29 is taken as follows from the New York "Times": Financial circles are encouraging discussion of the question of whether the pengo payments on account of foreign debts into a special fund in the Hungarian National Bank could be used to finance Hungarian agriculture and industry, either by credits or by discounting bills. Under the moratorium, foreign creditors are unable to touch this money. It is suggested here that, if it could be employed for the benefit of Hungary, Interest might be earned which would enable Hungary's foreign creditors eventually to receive interest payments on this frozen account. French Close Deal for Purchase of German Nitrates— Contract for 1932 Fertilizer Arouses American, Chilean and Norwegian Groups—French War Office Also Opposed—Object to Buying Military Essential from Former Enemy. According to a Paris cablegram to the New York "Times," the Ministry of Agriculture announced on Dec. 28 that it had signed an accord with German producers "to buy nitrate Invited to Join Deutsche Bank. Upon his return to Germany after his wedding. George von Siemens, who was then head of the Deutsche Bank, persuaded him to join forces with that institution, to whose board he was elected in 1894. For the remainder of his career Herr von Gwinner was identified with that institution, and he served it in various capacities, from Managing Director to President. In recent years his connection with the house was largely nominal, he having taken the title of Vice-President. Herr von Gwinner had many interests outside offinance. He was recognized as a scholar of English literature. He was also interested in philosophy, botany and mineralogy, and he received honorary degrees in political and natural science from Erlangen and Frankfort. He expressed regret in later years that he had not seriously taken up a career in politics. After the World War he engaged in a controversy, which attracted wide attention, to refute the claims made by Sir Edward Grey that German financiers were apprised in July, 1914, by the Kaiser that Germany was preparing to go to war immediately. He denied that there had been a July meeting between the Kaiser and German financiers, and pointed out that on July 27 of that year his bank had more than £26,000,000 on deposit in London. Among the industrial operations in which Herr von Gwinner was engaged was the reorganization of the Anatolian Railway and the Bagdad Railway. In a copyright cablegram from Berlin to the paper quoted above it was noted that Mr. von Gwinner aided in the reorganization of the Northern Pacific RR. and other ventures in the United States. Death of Ernst H. Schiff, London Banker—Nephew of Late Jacob H. Schiff. According to the New York "Times," a cablegram received here on Dec. 24 by Felix M. Warburg announced JAN. 2 1932.] FINANCIAL CHRONICLE 55 The jurist asserted that his action in posting bail would enable the issue the death in London of Ernst H. Schiff, a nephew of the late remain in the courts "instead of in the hands of Communist soap-box Jacob H. Schiff of Kuhn, Loeb & Co., this city, and a cousin to orators, who are accomplishing more mischief than the public either perof the late Mortimer L. Schiff and Mrs. Warburg. The ceives or is willing to admit." "Times" said: Mr. Schiff was born in Frankfort, Germany, about 50 years ago and Report That Bank of France Grants Credit to Greek had lived in London for many years, going there to join his brother, Otto National Bank to Increase Drachma Coverage. Schiff, in the banking firm of Bourke, Schiff & Co. He was prominent In banking circles and was also well known for his philanthropy. From the New York "Times" we quote the following from Mr. Schiff lived in this country many years ago, studying the banking Athens, Dec. 29: business in Pittsburgh. Decree in Portugal Suspends Conversion of Bank Notes into Gold Sterling Until April 30. Associated Press advices from Lisbon, Portugal, Dec. 30, stated: A decree suspending until April 30 the convertibility of Portuguese bank notes into gold sterling was issued by the GoVernment to-day. Their convertibility into sterling drafts on London was maintained at a par rate of 110 escudos to the pound. Rumania Gets Paris Credit-250,000,000 Francs to Be Used to Finance Winter Grain Exports. A cablegram from Bucharest, Dec. 28, appeared as follows in the New York "Times": A newspaper report that the Rumanian National Bank had received a credit of 250,000,000 francs from the Bank of France was officially confirmed to-night. It was stated an agreement to this effect had already been signed in Paris. The credit is to be used during the winter when the export of grain is difficult because the banks are short of foreign exchange. No details of the terms were published, except that the agreement was to run three months with an option of renewal for a futrher six months. The Bank of France has granted a $4,000,000 credit to the Greek National Bank to increase the coverage for the drachma, the newspaper Ethnos reported to-day. A larger loan was planned, but it will not be ganted until the world financial situation improves. In the past Greece has always done most of her borrowing in London. Now England is not only unable to lend money but it was the fall of the English pound which brought Greece into her present currency difficulties. Greece to Tax Rich for Relief. From the "Wall Street Journal" of Dec. 23 we take the following (United Press) from Athens: The Government has decided to impose extraordinary levies against the wealthiest families for relief funds in order to avoid food riots and general disorders. Moscow Ratifies National Budget—Outlay for 1932 Put at 27,041,966,000 Rubies, with Receipts Higher —Turnover Tax Chief Item—Estimated to Bring in $7,563,000,000. From Moscow Dec.29, a wireless message to the New York "Times" said: The All-Union Central Executive Committee, the Soviet Parliament. has ratified the State budget for 1932 at 27,541,966,000 rubles for receipts and 27,041,966,000 rubles for expenditure, with a State reserve fund of 500.000,000 rubles. iThe ruble is nominally worth 50 cents.! By far the largest item in the receipts is the turnover tax, estimated to bring in 15,126,000,000 rubles, compared with only 15.600.000 from the income tax and 600.000,000 from the unified agricultural tax. Altogether taxation is to produce 16,753,600,000 rubles. Rumors are being circulated in connection with the recent Paris visit of Estimated receipts from other sources—the profits from State industry, Finance Minister Argetoianu to the effect that if Rumania was unable to transport, State insurance and so forth—total 6,230,966,000 rubles. The Obtain a French loan she must follow Hungary's example and declare a remainder, amounting to 3,342,400,000 rubles is t,o be provided by loans, moratorium were emphatically denied by the Finance Ministry to-night. and there is a final item in receipts of 125,000,000 rubles, from "reduction The Ministry declared the Government already had placed at the dis- of administrative expenses." posal of the National Bank the necessary amounts for payment of coupons In expenditure National economy, including industry, agriculture, State on the State's foreign debt until March 1932, and the payment of further commerce and sea, railroad, river and air transport, takes 20,078,632,000 coupons was certain. rubles. The expenditure for education 1,403,000,000 rubles, is a fraction greater than military and naval expenditure, which amounts to 1,396.Loan and Refugee Stabilization 6% Greek Government 000.000. The military expenditure is only 5‘;',. of the total budget, speakers during of 1928—Bonds Drawn for Redemption Payable the session especially contrasting that fact with the "immensely higher" February 1. percentages in capitalist States. In the latter, however, agriculture, inState budget, Speyer & Co. and the National City Bank of New York dustry, and so forth, in private hands,are not included in the deducting this large Item from expenditure the Soviet military requireannounce that $65,000 bonds of the Greek Government 6% so ments would appear somewhat higher. Rumanian Finance Ministry Denies Moratorium Plan —Says Foreign Debt Is Secure. From the New York "Times" we quote the following from Bucharest, Dec. 29: Stabilization and Refugee Loan of 1928, have been drawn for the semi-annual sinking fund and will be payable on and after Feb. 1 1932 at par at either of their offices. Out of an original issue of $17,000,000 bonds there will remain outstanding $16,581,500 bonds. The above loan is secured by a pledge of all revenues collected by the International Financial Commission subject to maximum prior charges of about $20,888,000 per annum. These revenues for the 12 months ended Oct. 31 1931 have been reported equal to $50,769,000, as against $50,595,000 for the same period last year. Annual interest and sinking fund requirements amount to about $2,020,000 and E270,400 respectively for the dollar and the sterling loans. Institute of International Finance Believes Time Not Yet Ripe for Formation of Committee of Bondholders in Matter of Brazilian Debts—Closer CoOperation of Bankers Urged. Asserting that an analysis of the proposed funding of the Brazilian debt would disclose a fundamental weakness in adding approximately $1,000,000,000 to the external debt without any assurance of an increased capacity to meet the heavier charges, the Institute of International Finance, conducted by the Investment Bankers' Association, in cooperation with New York University, declared on Dec. 30 that the time was not yet ripe for the formation of comNew York Philadelphia Judge Who Sentenced Anti-Fascist for mittees of bondholders. We quote from the also taken: is following the which from 31, Dec. of "Times" Heckling Foreign Minister Grandi Gives Bail for opinion of the institute," the statement read. "that a closer the is "It Prisoner. Brazilian co-operation between the various banking houses interested in A Philadelphia dispatch Dec. 18 to the New York "Times" State and municipal loans would facilitate uniform treatment of outGovernstanding maturities and will become essential as soon as the Federal stated: of the control of State debts and Judge Harry McDevitt pledged his home to-day to raise $1,000 bail for the release of Orlando Spartaco, young anti-fascist whom he sentenced to a two-year prison term last month for "inciting to riot" during the Philadelphia visit of Dino Grandi, Italy's Foreign Minister. Spartaco, protesting that the judge was his "enemy," tried to refuse the ball, but was informed that under the law he had to accept it. As he walked out of the City Hall, free pending the Superior Court's consideration of his appeal, he asked, grinning: "If I don't show up. Judge McDevitt loses $1,000, doesn't he?" Spartaco, who is 26 years old, was arrested when he jumped onto the running board of Grandi's car and was said to have shouted: "Down with Mussolini! Down with Grand'? Down with fascism!" The jury convicted him of inciting to riot and Judge McDevitt sentenced him ss a "warning" to those of "communistic tendencies." Signor Grandi, making light of the incident, telegraphed a request to Governor Pinchot to intervene in the prisoner's behalf. The Governor replied that he could not do anything. When the case was taken to the Superior Court on Wednesday, Judge William H. Keller declared the evidence did not indicate that Spartaco intended to incite riot. He ordered the young man's release in bail, but the money could not be produced. After Judge McDevitt had come forward with It, Spartaco was taken from Moyamensing prison under protest and freed. Judge McDevitt declared that "were there to be another such case I would, for the protection of the public, impose a similar sentence." He added that Spartaco was "simply a figurehead" and that posting of bail Prevented "mischief makers" from making a martyr of Spartaco. ment develops further the problems finances in its relation to the Federal credit and currency problems." The Institute reports that American underwriting houses and fiscal agents of Brazilian bonds have spared neither time nor money in their endeavor to obtain payment of maturiting coupons on bonds sponsored by W.656 them. Bank of Brazil Aida Coffee Council. Under date of Dec. 31, Rio de Haneiro advices stated: The Banco do Basil to-day extended a credit of approximately $20,000,000 to the National Coffee Council to be used in paying for stocks. The credit is to be guaranteed by the Government. No Further Brazilian Coffee Barter. The following is from the "Wall Street Journal" of Dec.31: The National Coffee Council of Brazil does not intend to enter into any new transactions ofconsignment or exchange of coffee for other commodities. Dr. Marcos de Souza Dantas, President, stated in a cable to Sebastiao Sampaio, Brazilian Consul General at New York. The Council will limit its action in this matter to liquidation of contracts already made. These include shipment of 1,275,000 bass of coffee to the United States for 25,000,000 bushels of the Farm Board's wheat, of which 1,050,000 bags are assigned to the Board, and 225,000 to Bush Terminal Co. for their freight and storage services, and coffee to Germany in exchange for coal. 56 FINANCIAL CHRONICLE Professor Kemmerer Returnsfrom Lima Mission—South American Central Banks Will Support Gold Standard, Financial Adviser Predicts—E. F. Lamb of New York Federal Reserve Bank Also Returns. Professor Edwin W. Kemmerer of Princeton University returned on the Grace liner Santa Barbara on Dec. 28 from Lima, Peru, where he and two other United States citizens took part in discussions of South American finances with representatives of five countries. From the New York "Times" of Dec. 29 we quote the following: (VOL. 134. Funds Available for Payment of Jan. 1 Coupons of Hungarian Discount & Exchange Bank. Ames, Emerieh & Co., Inc., announce the receipt of funds to pay coupons maturing Jan. 1 1932 on the Hungarian Discount & Exchange Bank 35-year sinking fund 7% bonds, due July 1 1963. Bonds of Mortgage Bank of Chile Dealt in "Flat" on New York Stock Exchange. The following notice was issued Dec. 31 by Secretary Green of the New York Stock Exchange: Explaining that he had attended the meetings in a purely advisory capacity and had not held a vote in the resolutions placed before the gathering of experts, Professor Kemmerer declined to discuss the conferences freely Mortgage Bank of Chile. on the ground that he was not in a position to do so. He said he brought Guaranteed Sinking Fund 635% Gold Bonds, due 1957—Interest. back with him a set of resolutions, written in Spanish, concerning the situation of the central banks in the South American countries. He took the NEW YORK STOCK EXCHANGE resolutions with him to Princeton, where he will have translations made. Committee on Securities Eric F. Lamb of the Federal Reserve Bank of New York,another member of the American group, also returned on the Santa Barbara. The third Dec. 31 1931. member of the party, Allen Sproul, also of the Federal Reserve Bank, Notice having been received that the Interest due Dec. 31 1931. on returned several weeks ago. MORTGAGE BANK OF CHILE All the members of the conference, which included experts from Peru, Chile, Bolivia, Ecuador and Colombia, recognized the serious nature of Guaranteed Sinking Fund 634% Gold Bonds, due 1957, is not being paid: The Committee on Securities rules that beginning Thursday, Dec. 31 the problems discussed, Mr. Kemmerer said, and there was much debate and difference of opinion, with impressive unanimity, however,on fundamentals. 1931, and until further notice, the said bonds shall be dealt in "Flat" and He expressed the belief that the central banks of these five countries would to be a delivery must carry the Dec. 31 1931, and subsequent coupons. ASHBEL GREEN,Secretary, support the gold standard, silver having been mentioned only once during the conferences, and then with the idea of aiding the silver producers of South America by putting more silver in coin. Mr. Kemmerer was asked about the prospects for South American bonds. Uruguay Advances New Moratorium—Senate Votes He pointed out that the conference dealt exclusively with central bank Extension of Delay on Foreign Business Obligations problems, saying he could not comment on other conditions or the present for a Year—Power of Central Bank Increased, outlook in the southern countries. "Bootleg Exchange" in South America—Money Remitted Abroad Through Private Checks at Great Profit—Export Ban Thus Evaded. In its Dec. 27 issue the New York "Times" published the following from Montevideo: A highly profitable new bootleg business—exchange—has sprung up throughout South America as a result of artificially controlled exchange rates, embargoes on remittances and other restrictions. The latter'are intended to protect bankrupt South American currencies by preventing the free operation of the usual machinery of international finance. Those who are temporarily in high political positions in the various republics appear convinced they are guided by some heaven-sent inspiration which empowers them to put Humpty Dumpty together again. So far, however, they have succeeded merely in damming up the usual channels through which business has been accustomed to flow. But these dammed-up streams now are overflowing and are seeking new channels provided by bootleg exchange operations. One outstanding and unpardonable crime in the present state of public opinion in South America is that any American or British corporation should have made a profit. Furthermore, should there be a desire to remit that profit abroad for the benefit of stockholders, there Is an almost universal and unbreakable embargo on such remittances. Companies and individuals with dollar balances in New York, sterling balances in London and other balances in European centres are approached by companies and individuals desiring to remit but unable to obtain permits from official banks. Private arrangements are then made enabling the remitter to ship funds. Needless to say, such private arrangements are not made at the artificial exchange rates established by the official banks, but at the utmost limit which the urgently pressed remitter is willing to meet. One large foreignowned public utilities corporation is remitting funds regularly from a capital where such remittances are "absolutely prohibited." Even the corporation's executives refer to the remittances as "bootleg exchange." Private individuals have found bootleg exchange the only possible means of remitting funds to their families from one capital which has prohibited even small Individual remittances. Heavy penalties threaten banks and exchange brokers violating the restrictive measures in virtually all the South American republics, but so far there is nothing to prevent a man having a bank account in New York from drawing a check against this account and giving It to a friend in South America in exchange for a lustful of local currency or other valuable considerations. Honduras Pays Semi-Annual Instalment on Internal Debt—Jan. 31 Payment on Foreign Debt to Be Paid When Due. From Tegucigalpa (Honduras) Dec. 30 Associated Press accounts said: Alarming Industry. In a Montevideo cablegram Dec. 25, it was stated that the Senate had passed a bill extending the moratorium on foreign commercial debts until the end of next December, with monthly payments extended throughout the year. The cablegram went on to say: Whether the monthly payments will be 1-12th of the total or other-. wise will be left to the discretion of the Bank of the Republic,from which permission to remit must be obtained. The bill alters the provisions of the moratorium laws of Sept. 7 and Oct. 14, which declared a commercial moratorium until the end of this month, with balances payable in five monthly instalments beginning in January and ending in May. Drafted by the Bank of the Republic, it has had the support of the new Minister of Finance. It also provides that dividend or debenture payments to foreign corporations must be distributed by monthly quotas throughout the year, subject to the approval of the Bank of the Republic. Any new dividends declared after the passage of the law will be subjoct to the same restrictions. The measures authorizes the official bank, In granting remittance permits, to give preference to the oldest debts secured by guarantee deposits, and provides that permits for dividends or debenture payments shall not be granted to firms which have not informed the bank by the first of the year of the total amount they must remit. Bank's Power Increased. This and several other recent provisions give the official bank the power of direct intervention in private business to an extent hitherto unexpected here, and some business men interpret this as a violation of the constitutional guarantee of liberty of commerce. The bank Issued a circular recently demanding that all business houses and individuals inform it how much they owed abroad, supported by documentary probe. A circular threatened that "those failing to supply this Information to the bank will have trouble in obtaining permits for the purchases of exchange for remittances." Uruguay Suspends Payments on Foreign Debts. The following from Montevideo Dec. 31 (Associated Press) is from the New York "Evening Post": Uruguay will suspend amortization payments on its foreign debt, but will make the interest payments punctually,the Government decided to-day. The decision followed a meeting at which President Terra, the Ministers of Finance and Interior, the Finance Committees of both Houses of the Legislature and representatives of the official Banco Republica were present. The suspension was made necessary by a prospective deficit of more than 3,000,000 pesos on next June 30. a resolution passed at the meeting said. Testimony of Otto H.Kahn Cited in Urging a Default— Uruguayan Paper Says Banker Showed Sacrifices to Pay Debts Are Futile. From the New York "Times" we take the following from Cuba Makes 1931 Payments on Foreign Loans—Sums Sent to New York Liquidate $6,250,000 Public Montevideo, Dec. 24: "El Pais," organ of the controlling party, cites Otto H. Kahn's testimony Works Issue and Service 1945 Bonds. before the Senate Finance Committee as proof of its contention that it is From the New York "Times" we take the following not worth while for Uruguay to continue the sacrifices required to meet her payments on foreign bonds. Havana advices Dec. 28: The newspaper asserts that Uruguayan bonds which were quoted at The government paid the semi-annual instalment of E200.000 on the Internal debt to-day and announced that the $100.000 instalment on the foreign debt would be paid punctually on Jan. 31, when it falls due. The Cuban Government has brought its payments on foreign loans up to date as of Dec. 31 with advance liquidations made in the last few days, it was learned to-day from authentic sources. The Treasury paid to the Chase National Bank of New York $2,250,000, plus interest of some $400,000, this month. This, with several payments amounting to 54,000.000 during the current year, liquidates the 1;6,250,000 short-term 5,6% public works serial loan. An interest payment of $1,100,000 has also just been turned over to the Chase National Bank by the Treasury with respect to the $40,000,000 534% public works gold bonds of 1945, which are now outstanding in the hands of investors In the United States. These final payments in December have placed Cuba in an enviable position, as far as foreign obligations are concerned, it is felt here. 96 in New York a year ago are now at 22, while Uruguay's sacrifice in meeting the service charges promptly despite her heavily depreciated currency is not even remembered or mentioned when men like Mr. Kahn group all South American nations together as defaulters. President Gabriel Terra has repeatedly spoken in favor of suspending sinking fund payments until exchange improves, but he strongly favors the continuance of prompt interest payments. In publishing the above, the "Times" of Dec. 25 said: "El Pais" presumably refers to Otto H. Kahn's testimony before the Senate Finance Committee In Washington on Monday. When he was asked by Senator Robert M. La Follette about defaults on foreign bonds. the New York banker replied: JAN. 2 1932.] FINANCIAL CHRONICLE "In the case of Germany there are hardly any in default. In the case of South America and Central America, unfortunately, the great majority are in default." Customs Revenue of Uruguay Declines Despite Collection of Duties in Gold. A cablegram as follows from Montevideo Dec. 27 is taken from the New York "Times": Uruguay's attempt to increase her customs duties by the collection of 25% In gold has produced only $90,000 in revenues, while this and other restrictive measures have so reduced imports as to produce $1,000.000 less of customs revenue since July 1, compared with the corresponding six months of last year without succeeding in producing a favorable trade balance. Uruguay depends on customs duties for three-fourths of the Government's revenues. Statistics published to-day show that imports at the end of November were valued at 76,779,042 pesos ($38,389,5211, which is only 4.400,000 pesos I$2,200,0001-5M %—less than for the same date last year, while exports were valued at 70,600,000 pesos, compared with 92.600,000 for the first 11 months of last year, a decrease of 23%, 57 "The National Government is preparing a plan for the issue of interest-bearing scrip which will be offered in exchange for the coupons of departments, municipalities and mortgage banks that cannot be paid when due because of the inability to transfer dollar exchange. This plan will be published in the near future. The National Government intends to remit funds sufficient to pay in fill the interest on its own external debt, including both direct and guaranteed obligations." Money Transfers In and Out of Colombia Taxed. President Olaya Herrera on Dec. 2 issued a decree levying a 1% tax on all transfers of money in and out of Colombia according to Associated Press accounts from Bogota, Colombia. Colombia Suspends Office of Customs Director. Under a recent decree, the Colombian Government temporarily suspends the office of Director-General of Customs, together with the Customs Jury, according to a cable from Commercial Attache W. L. Donnelly, Bogota, to the Colombia Ties Up Foreign Exchange—Drastic Rules Department of Commerce. The Department's announceAlso Govern Exports Under Recent Decree—Bank ment states that the decree goes into effect Jan. 1 1932. of Republic Gains—All Transactions Abroad Must The Supreme Court of Customs at Bogota will make the Be Through Government Isntitution. tariff decisions until further notice, the cable stated. Regulations governing the issuance of permits for exports from Colombia and transactions in foreign exchange, as Colombian Budget Signed—Total of $37,150,000 for 1932 Is $6,000,000 Below This Year. required by recent Presidential decrees, have just been published by the control office attached to the Bank of From Bogota (Colombia) Dec. 22 a cablegram to the the Republic, said Bogota advices Dec. 20 published in the New York "Times" stated: Colombia's budget for 1932 was signed to-day by Minister of Finance New York "Times" of Dec. 27, which also stated: exclusive of Drafts covering the value of c. I. f. or f. o. b. export shipments must be sold to the Bank of the Republic either direct or through a private bank. Exporters of merchandise on consignment must sign a written obligation to make like disposal of draft covering the proceeds of shipment, and the consignee's agent must agree to remit through the Bank of the Republic. Large coffee shippers who receive monthly export licenses in advance, must make fortnightly reports of shipments and drafts, with certificates of private banks covering sale of drafts and agreement to transfer such exchange to the Bank of the Republic. Such shippers may be required to furnish bond to guarantee compliance with the regulations, and must account to the control office for any difference between value of shipments and resulting drafts, after due,'allowance for commissions and profits. Parcel Post Covered. Proceeds of exports cannot be returned to Colombia in the form of merchandise without previous permit from the control board. Postoffices will not forward parcel post shipments abroad unless export regulations are complied with. Monthly remittances abroad to Colombian non-residents or to families of foreign residents of Colombia, for living expenses, are limited to $250 for head of family. $150 for wife and $100 for each child, and maximum monthly allowances for students in foreign universities and secondary schools are set at $150 and $120 respectively. In these cases, additional remittances for imperative prior obligations or for medical expenses may be approved by the control office in its discretion. Diplomatic, consular and fiscal representatives of Colombia abroad are exempt from these restrictions. Banks cannot reimburse clients for collections without approval of the control office after submission of all documents covering the transaction. Similar procedure is necessary when foreign exchange is requested to make payments covering merchandise on open account. Permits granted for advance payments on merchandise to be imported will carry the condition that all documents will be submitted to the control office within a stipulated period. Interest Payments Restricted. Applications for permission to remit dividends or interest abroad on stocks or bonds will not be approved in case the ultimate payee is a foreign Investment house. Persons leaving the country may receive permission to take out funds sufficient for necessary traveling expenses and one month's residence abroad, after justifying the proposed absence and exhibiting passport and steamship ticket to the control office. Private banks acting as agents of the Bank of the Republic can sell foreign exchange only upon applications approved by the control office. Banks must make daily report to the control office of their purchases and sales of foreign exchange. They can buy foreign exchange, other than proceeds of exports, only upon permission of the Bank of the Republic. However, banks can freely make payment in national money on checks or other orders for payment drawn against deposits in foreign money. Insurance companies are forbidden to insure remittances of foreign currency from Colombia to other countries unless they first secure license from the control office, which they must notify of any indemnity payments made by them in Colombia in foreign currency covering losses of any nature. Jaramillo. It is based on an estimated revenue of $37,150,000, income from the national railways, according to El Espectador. This is more than $6,000,000 less than the budget for 1931, not including the revenues of the national railways,which are estimated to produce $8,500.000. The total budget for the present year was estimated last January at $51,750,000, but the probable actual receipts did not exceed $46,000,000. including at least $6,000,000 from the national railways. An editorial in the Bank of the Republuc's Review for December warning the country that it was headed for paper money unless the 1932 budget actually balanced produced a great stir in the press. President Olaya and Finance Minister Jaramillo announce the Government's determination to balance the budget, although Senor Jaramillo warns against a possible railway deficit. Colombia Imposes New Stamp Taxes on Shipping and Other Documents. A Colombia Presidential decree of Dec. 21 1931, effective Jan. 1 1932, imposes new stamp taxes in varying amounts on consular and commercial invoices for parcel post shipments and other shipping documents required by the Customs on freight shipments, applications for import duty exemptions and reductions, export bills of lading, automobile tires, all money transfers, copyrights, trade-mark registrations, passports and visas, insurance policies, patents, and steamship and airplane tickets in excess of 60 pesos, according to a cablegram received by the Department of Commerce from Commercial Attache Walter J. Donnelly, Bogota. We quote further as follows from the Department's announcement of Dec. 24: The new stamp taxes are as follows: consular or commercial invoices on parcel post shipments, 3 pesos each; applications for exemptions or reductions of import duties, 4 pesos each; export bills of lading, 1 peso each; freight manifests and invoices, unloading permits, and other documents required by the Customs, 1 peso each; automobile tires, including present stocks, 1 peso each: all drafts, transfers, bills of exchange, checks, sight drafts, foreign cables and wireless transfers payable in Colombia, 1% of value: and on similar documents negotiated and paid in Colombia, 10 centavos for each 100 pesos in amount. Other new stamp taxes established are: patents, 20 pesos; copyrights, 5 pesos; trademark registrations, 40 pesos; passports, 10 pesos: visas, 5 pesos; insurance polides, 20 centavos for each 100 pesos: and foreign steamship and airplane tickets in excess of 60 pesos, 5 pesos each. Colombia Salt Rights—Banco de la Republic Granted Mining Concession for 13-Year Period. Supplementing the item appearing in our issue of Dec. 26, page 4252, regarding the Colombian Salt mines, we quote Colombia to Offer Scrip for Interest—Unable to Make the following from the "Wall Street Journal" of Dec. 22: The Consul General of Colombia in New York has received a cable Payments Due Soon on Subsidiary Bonds, Governthat the Colombian government has approved a contract with the ment Adviser Says—To Hold Amount in Pesso— stating Banco de la Republica granting the bank the exploitation rights on the Funds Will Be Sent to Meet Obligations on Re- salt mines for a period of 13 years, in exchange for which concession the Banco de la Republica advances the government 15,500,000 Colombian public's External Debt. pesos. From the New York "Times" of Dec. 29 we take the This amount,in accordance with the terms of the contract, will be applied to cancellation of the fiscal deficits of 1930 and 1931, to the payment of following: As a result of previously announced restrictions on exports of gold from Colombia, trustees In New York City of several Colombian departmental and municipal bond issues do not have on hand the necessary moneys with which to meet interest and sinking fund requirements about to fall due. Discussing this situation yesterday, George Rublee, Financial Adviser of the Government of Colombia in the United States, said that although the customary service on the bonds would not be made, the debtor institutions had been ordered to place on deposit in Colombia an amount in pesos equivalent, at the current rate of exchange, to the amount due in dollars at this time. "Measures to restrict the export of gold," he said, "were taken by the National Government in the interest of all parties concerned, including the American holders of Colombian bonds. the government's indebtedness to the departments and municipalities, to the subscription of capital to the agrarian and savings banks and to the completion of various public works. German Medicinal Exporter Accepts Payment in Coffee from Brazii. The Department of Commerce under date of Dec. 24 said: Recently a German exporter of medicines made a shipment of goods worth $25,000 to Brazil and when payment was due the buyers stated that they were unable to meet their obligations and offered payment in 58 FINANCIAL CHRONICLE coffee, according to a report from Consul General Leon Dominian, Stuttgart, made public by the Department of Commerce. The offer was accepted, although the exporter claims to have made no money on the transaction. [VOL. 134. only hard pressed to fulfill their obligations, but have found it difficult to complete their harvest. In some extreme cases, through lack of purchasers, properties have been auctioned for two-thirds of the actual loans involved. To make up for this difference 217,197 colones ($54,299) of the net profits have been set aside. The net profits of the bank amounted to 1.156,292 colones ($289,073), of which 493,721 colones ($123,430) have been set aside for the reserve fund, which amounts to 9,513,224 colones. The capital of the bank is 2,090,000 colones ($522,500). Shift from Sterling Is Asked in Bolivia—Chamber of Commerce Argues Currency Depreciation Hai Hurt Business. A wireless message as follows from La Paz, Bolivia, Dec. Porto Ricans Lose Appeal—Old Union Party Has No 23, is taken from the New York "Times": Right to Name, Boston Court Rules. The Chamber of Commerce petitioned the Senate to-day to instruct The United States Circuit Court of Appeals at Boston on the Central Bank of Bolivia to shift its exchange base, arguing that the present sterling base has caused a rise in other currencies, particularly Dec. 24 affirmed a decision of the Supreme Court of Porto dollars, which threatens ruin to many businesses. Rico refusing to grant a writ of mandamus compelling Porto Representatives of mining interests, however, protested the petition, contending that the exchange rate was helping them and that the mines Rico to register Antonio R. Barcelo and Miguel Martorell, produce 91% of Bolivia's exports. They insisted that this industry must candidates of the Union party of Porto Rico on the ballot be upheld, even at the cost of some temporary sacrifice in other lines, since for the general election next year. A Boston dispatch to the any further cuts in production would necessitate the closing of many mines, throwing thousands of men out of work, with disastrous economic and New York "Times," Dec. 24 reporting this added: The effect of the decision is that the Union party of Porto Rico lost its social consequences. The mining men also argued that their business indirectly helped the right to the use of this name in 1924 when it entered an alliance with the other lines, since it took up drafts which otherwise would be inconvertible Republican party of Porto Rico. In 1929 the 'Union party voted to dissolve the alliance. Whereupon the without drawing upon the Central Bank's gold reserves. It is believed that no action will be taken on the petition until after Union party nominated candidates and attempted to record them with a conference between Senators and representatives of mining and com- Eduardo J. Saldana, Executive Secretary, who refused to put them on the merce. The situation moreover, is complicated by dispatches from Wash- ballot on the ground it would lead to confusion, as the alliance claimed ington saying that rumors are in circulation that the United States may exclusive right to the name of Union party. abandon the gold standard. The boliviano it now quoted at almost fou to the dollar, as compared Deputies Vote Plan for Payment of Mexican Internal with the customary 2.80. Costa Rica Relieved by Grace on Loan Payments to Banking Institution in New York. Special correspondence from San Jose, Costa Rica, Dec. 19, was published as follows in the New York "Times" of Dec. 27: It has been learned that the Central Union Trust, a banking concern in the United States to which the Government of Costa Rica owes approximately 2,100,000 colones ($525,000), will grant grace for the payments of interest and amortization, which are made monthly. The loans from this institution were made through the National Insurance Bank for 1.100,000 colones ($275,000) and the rest through the Royal Bank of Canada and the Bank of Costa Rica. The guarantee given by Costa Rica for the loan is the revenue obtained from the coffee export tax. The monthly payments of interest and amortization have been Vnnztually paid by the Government, but have been a considerable drain on its resources. Costa Rican President Approves Income Tax--Persons Subject to Levy Must Be Provided With Certificate Debt, The Chamber of Deputies approved with slight variations on Dec. 22 a proposal submitted by Finance Minister Luis Montes de Oca for the payment of Mexico's internal debt of about 600,000,000 pesos (nearly $300,000,000 at par) by the sale of government owned lands at present unworked. The New York "Times" in reporting this in Mexico City advices, Dec. 22, added: Payment of the debt will be made in bonds redeemable in lands. The Chamber also approved last night the budget for the coming year for the Department of War and Marine, totaling 55,500,000 pesos, as compared with about 70,000,000 for 1931. The previous year it was 84.000,000 pesos (about $42,000,000). Associated Press advices from Mexico City Dec. 22 said: The project which provides for the payment of most of Mexico's interest debt with bonds has been approved by the Chamber of Deputies. The modifications deny a holder of the debt bonds the right to acquire more land than he can properly cultivate, obligating him to dispose of excess holdings. It also subjects holders of land acquired from debt bonds to application of the agrarian law. The measure now goes to the Senate. of Identity. The following (special correspondence from San Jose, Costa Rica, Dec. 7) is from the New York "Times" of Mexico To Take Up Debts—Extraordinary Session of Dec. 13: Congress to Consider Lamont Agreement. President Gonzales Viquez has approved a new law providing for the The following from Mexico City Dec. 29 is from the New collection of income tax, the first in the history of the country, and for the issuing of certificates of identity for use in courts, public offices, elections, York "Times": notarial business and other similar transactions. These certificates may The extraordinary session of the Mexican Congress, which is expected be demanded by any officer or other person concerned in acts of the holders. to open Jan. 10, will take up as its principal problem the Lamont-Montes The law provides that income tax must be paid on all income or cash de Oca debt agreement, signed in the Summer of 1930. Jose Santos receipts amounting to 10,000 colones ($2,500). The scale of collections Alonso, President of the permanent committee of Congress, says the ranging from incomes of 10,000 colones up to 500,000 colones ($125,000) or committee will meet tomorrow to call the extraordinary session upon the more amounts to 60 colones ($15) on the minimum to 30,000 colones ($7,500) request of the Cabinet. on the maximum, with 16 Intermediate rates. The tax will be doubled on The Congress also will study the budget, but Senor Santos denied there taxpayers who maintain abroad more than 25% of their receipts or capital, was a deficit of 8,000,000 pesos (about $4.300,000 at par), saying that at with the exception of banks, which are required to maintain deposits most the deficit was not more than 4,000 pesos. abroad to meet their normal demands for drafts. The proceeds from both the certificates and the income tax will be assigned first to the cancellation of the loan of $750,000 from the National Mexican Chamber of Deputies Votes Land Bonds. City Bank of New York. The new certificates of identity will be issued in Associated Press advices from Mexico City Dec. 22 stated: January 1932, but they will not be required in the elections next year. The project which provides for the payment of a majority of Mexico's interior debt with bonds redeemable only with National lands has been Annual Report of International Bank of Costa Rica— approved by the Chamber of Deputies, with important modifications. The modifications deny a holder of the debt bonds the right to acquire Freed From Politics Government Institution Conmore land than he can properly cultivate, obligationg him to dispose of tinues to Gain in Importance. excess holdings. It also subjects holders of land acquired from debt From the "Times" of Dec. 27 we take the following from bonds to application of the agrarian law. The measure now goes to the Senate. San Jose, Dec. 19 (special correspondence): The annual report of the Banco Internacional de Costa Rica for the year ended Oct. 31, just made public, shows that this Government institution has been gradually increasing in importance during its 17 years of existence, and expecially since 1919, when the present board of directors took control, and has carried on its work with complete freedom from political influence. In spite of the fact that the country has been passing through a difficult period, the bank's profits of the past year have been greater than those of the previous one, although there have been many reasons why the efforts made to obtain this result might have proved unavailing. One of these has been the decrease in the rates of interest received on deposits abroad. Loans made during the first quarter amounted to 2,770,000 colones ($692,500). In the last three months the demand was extraordinary, and it was impossible to attend to all applications, which amounted to some 2,000,000 colones ($500,000). The year has been remarkable for the delay in payments of installments, which has been due, generally speaking, to irregularities in the cultivation of farms given as guarantees, which, in some cases, have been taken over by the bank, rather than to allow them to be abandoned by their owners. It has become necessary to open a new department to deal with matters connected with crops, revision of payrolls and sale of properties, all of which are under the control of one of the directors. Three coffee "beneficios" (curing plants) have been constructed by the bank, and roads and bridges have been built on some of the properties. The situation of the coffee planters has been perplexing they have found it Impossible to obtain advances for the purchase of the crop, and are not Property Owned in Mexico by Non Residents Subject to New Tax Law. From the "Wall Street Journal" of Dec. 28 we take the following from Mexico City: Some Americans are affected by the new absentee law which imposes a tax of one mill on all real property owned by non-residents of Mexico. The law becomes effective on Jan. 1. Mexico Levies Power Tax—Federal Charge on Kilowatt Hours Replaces Former Systems. The New York "Evening Post" reported the following (Associated Press) from Mexico City Dec. 18: A new Federal electric power tax, replacing forms of taxation now in use, was announced today by the Treasury Department. The Government hereafter will tax companies 0.0023 centavos for each kilowatt hour of current produced or introduced into the country, and the States will tax the producing companies 0.0012 per kilowatt hour for current used within their respective boundaries. It was explained the new system is more equitable. JAN. 2 1932.] FINANCIAL CHRONICLE 59 of these forms of taxation and will consent to their nationals being subject New Mexican Bank. to them. From Mexico City advices to the "Wall Street Journal" of Dec. 23 said: Trading on New York Curb Exchange in 1931—Despite Roberto Riversoll, former manager of the New York office of Banco Slump in Volume of Trading, the Number of Issues Nacional de Mexico, has been named general manager of the new Banco Traded in Did Not Diminish. Industrial de Nuevo Leon, which is scheduled to open in Monterey on Jan. 15. The New York Curb Exchange, in reviewing the year's The Banco Industrial, which will do a general banking business in Monterey,Mexico'sindustrial center, will open with capital of500,000 pesos. operations, notes that "the year 1931 will go down in the annals of financial history as one in which prices for securities experienced unprecedented declines." Continuing, the Reopening of Banco Credito Espanol of Mexico. The Dec. 24 issue of the "Wall Street Journal" contained review says: In fact, quotations for the majority of gilt-edged securities depreciated the following from Mexico City: to levels not before experienced in more than a decade, and what with the Credito Espanol de Mexico, the largest Spanish bank in Mexico, has worldwide upheaval in economic conditions, sentiment receded to a very reopened. The bank closed its doors last summer following enactment low ebb. Shares on the New York Curb Exchange almost from the beginof the monetary law. Withdrawals from the bank on the first day of ning of the year were sold indiscriminately, and in order to compare their business were reported to be light. low levels statisticians were forced to go back a great many years to find a The proposed reopening of the bank was noted in our parallel in the range. Unlike the period from 1925 to and including 1929, when trading operaissue of Dec. 19, page 4086. tions were carried on in hectic fashion, the volume of dealings on the New York Curb Exchange during 1931 slumped considerably and there appears Prime Minister Forbes of New Zealand Proposes Com- to be nothing on the immediate horizon to Justify any material improvement in the trend of values. However, the Exchange has the mission for Control of Exchange Resources to utmost faith ingeneral the ultimate recovery of business and this was very plainly indicated in the erection, this year, of its new building. Insure Credits in London. While the year 1931 has been one of discouragement, nevertheless the Associated Press advices, Dec. 24, from Wellington, New number of issues traded In on the New York Curb Exchange did not diminish, there being a total of slightly more than 3,000 stocks and bonds—over Zealand, stated: Prime Minister G. W. Forbes, whose Government was sustained in the 2,400 stocks, both domestic and foreign, about 550 domestic bonds and recent general election, to-day proposed creation of a commission for approximately 100 foreign bonds—and of this total there are to-day 1.505 control of exchange resources to insure sufficient credits in London for stocks in the dividend-paying class, compared with 1,465 issues at the close of 1930, a really remarkable exhibit in view of the crash in security quotapurposes of the New Zealand Government. The proposal would pool all exchange credits arising from the sale of tions. It may be maintained here that these stocks comprise 65% of the active issues dealt in daily. exports abroad. The banks already have agreed to pool their exchange Another favorable feature has been the activity in the bond section. resources. During the boom year of 1928-29 bonds played a rather insignificant part Mr. Forbes said the action was essential in order that the Government in the daily operations, but this year the volume increased to record promight be in a position to meet all commitments when they fell due. portions. As of Dec. 15 dealings in bonds approximated 3935,000,000, His proposal was an outcome of suspension of the gold standard by the highest record ever made on the Curb Exchange, and compared with Great Britain, which made necessary an abrupt change in New Zealand's approximately $785,000,000 in the corresponding period of 1930. On the commercial plans, he said. He added that the Government could not count other hand, total dealings in stocks as of Dec. 15 1931 approximated upon floating a long-term loan in London next year at a reasonable interest 110,000,000 shares, compared with 212,000,000 shares in the same period rate and must carry on without outside assistance. of 1930. Ordinarily there are about 150 bond issues dealt in during a session, but the average this year has been considerably above 200 issues per day, New Zealand Plans Import Restrictions—Move Said with a total of 330 issues being dealt in on Nov. 10 1931. The greatest number of stock issues traded in for one day during 1931 was on Oct. 1. to Be Designed to Improve Exchange. when 481 issues were dealt in. The combined total of stocks and bonds Prediction that American exporters to New Zealand will dealt in was 792 on Oct. 1. The most active session this year was Feb. 26, when 1,095,000 shares be further penalized by increased import restrictions early in were dealt in. The dullest day was on Sept. 1, when 135,435 shares 1932 were contained in cables received from Wellington by changed hands. This most active two-hour session occurred on Feb. 21, the Department of Commerce, Dec. 29. when 528,600 shares were dealt in. The dullest Was on July 18, when 83,736 changed hands. shares The new restrictions, it is stated, will be one of a series There were 268 stock issues and 77 bonds stricken from the list during of moves to improve the exchange situation; New Zealand 1931, but new admissions practically offset the losses thus experienced. banks already are pooling their exchange resources in order A large number of securities removed were for failure of the companies to maintain transfer offices in New York, and a few as a result of the comto meet oversee government requirements without borrow- panies going into the hands of a receiver. On the other hand, the reason ing, and a new loan probably will be located in London next for the removal of bonds WBS either that they were called for redemption, or they matured. Twelve"rights" were admitted during 1931. year, according to the cables. The total par value ofstocks dealt in as of Dec. 15 was slightly less than The announcement of the cablegram, as given in the $10,000,000,000,in addition to about 600,000,000shares without par value this total, nearly 900 issues have been approved as satisfactory collateral Of "United States Daily" of Dec. 30, follows: for bank loans, although the Money Post as a result of the low rates for The Department of Commerce ia just in receipt of the following cable funds as taken but a moderately active part in the Exchange's operations from its Wellington office: during the year. Nevertheless, since its establishment in April 1930 ap"The banks here are pooling their exchange resources, the object being proximately $125,000,000 has been loaned on Curb collateral. However, to bring all credits arising from the sale of exports into one pool in order with a renewal of more active trading the present slack in money may be to meet all oversee government requirements without borrowing. The move expected to be taken in, and it is believed that this will have a rendencY is believed to be the forerunner of another Government loan in London to bring to the Money Post many of the special loans now outstanding. early in 1932; also of import restrictions which will further Prices of memberships naturally decreased with the volume of business penalize Importers of American goods. It is believed this move will enable the during the year. The high price of $137,500 was made on Feb. 26, and banks and the Government to maintain present exchange rates for some the low of $30,000 on Oct. 2 1931. The present value of Curb Exchange time. The amount available for financing imports will be affected by the memberships now approximates $45,000. The high for all time for memState's buying so much exchange. The current rate of exchange shall be berships is $254,000, made Sept. 23 1929. The high in 1930 was $225,000, the rate quoted by the banks of issue. This is similar to the Australian made on April 20, with a low of $70,000 established Nov. 12. Forty-one plan of July 1980. Local bodies are expected to share with the State In memberships have been transferred since Jan. 1 1931, compraed with having the first call on the dominion exchange pool. 54 in 1930. "A new economy commission is to be appointed shortly There has been very little short selling on the Curb Exchange this year, and further serious restriction of imports is anticipated." notwithstanding the big drop in security values. It is estimated that at least 75% of the dealings in Curb securities are on a cash basis and what A further cable states that, effective Jan. 1 1932, New Zealand exporters little short selling of goods for sale overseas will be required to obtain an export occurred in what may be termed a handful of usually license from active securities. the collector of customs. Egypt Asks Sanction to Tax Foreigners—Plans Stamp, United States Supreme Court Decides Iowa Bank Tax Suit—Reverses State Supreme Court, Which Automobile and Theatre Levies on Egyptians, Denied a Refund to Des Moines Banks. Too, to Avoid Deficit. Deciding that the shares of two Iowa banks had been In its Dec. 24 issue, the New York "Times" reported the taxed at a rate higher than that of competing capital, the following from Cairo, Dec. 23: Unless the Egyptian Government can find means of increasing its revenue, United States Supreme Court took the position on Dec. 14 It may find itself faced with a deficit between $20,000,000 and $25,000,000 that it did recently in the case of the Public National Bank for the coming year. of New York. A dispatch from Washington Dec. 14, In an attempt to avoid this, the Government plans to impose various new indicating this, further said: taxes, including a stamp duty, a patent duty, taxes on motor vehicles and Before taking a recess until Jan. 4, after a 30-minute session, the Court amusement places and a tax on professional incomes. Such measures were foreshadowed by King Fuad in his speech from the throne on Dec. 10. The Ministry of Finance has completed a draft of the proposed patent duty law, which is now being put in legal form. The Government desires that not only Egyptians but also foreigners resident in Egypt shall be subject to the new taxes. The tax proposals must first be submitted, however, to the General Assembly of Mixed Tribunals representing the capitulatory powers here. It is understood that this subject was discussed at a recent meeting between Premier Sidky Pasha and Sir Percy Loraine, the British High Commissioner. General opinion in authoritative circles here and in the Egyptian press seems to be that the foreign powers appreciate the urgency and fairness dealt with two other appeals of particular interest to New York City. It declined, without comment, to review a suit whereby Howard Sutherland, Alien Property Custodian,sought to sustain a claim of $140,788 from the Second Russian Insurance Co., represented in New York by Meinel & Wemple, Inc., a subsidiary of H. Mutzenbecher Jr., a German co-partner- ship. The Court also ordered New York to pay $6,500 fees and $729 expenses to Edward K. Campbell, Special Master in the suit wherein New Jersey compelled the city to cease dumping garbage off the Jersey beaches. The city was also required to pay the Court costs. The Iowa bank cases were disposed of in an opinion by Justice Brandeis, the only opinion which the Court handed down. They reached the Supreme 60 FINANCIAL CHRONICLE Court on writs of certiorari from the Iowa Supreme Court and were brought by the Iowa-Des Moines National Bank and Central State Bank. Banks Sought Tax Refund. The banks contended that for four years Polk County exacted taxes on their shares at a rate higher than exacted of competing moneyed capital. Under protest the banks paid the taxes, with interest and penalties, ant then brought mandamus proceedings for a refund. The trial court denied relief to the banks and was sustained by a divided bench of the State Supreme Court, which held, Justice Brandeis stated, that no right of the petitioners under the State law was violated because they were not over-assessed, and that no right under the Federal law was violated because the lower taxation of their competitors was not an Act of the State. Justice Brandeis stated that the State decision rested upon a misconception of the scope and effects of the Federal rights involved and ruled that the banks were entitled to refund of the taxes they had paid. [VOL. 134. demanding full payment from the Allies, who in turn demanded payment from Germany in the form of reparations, when each of the nations had erected a tariff barrier which shut on the commerce of other nations as far as possible and so rendered only poorer the nations from whom payments were demanded. To this Mr. McFadden replied that the "United States cannot afford to restore a foreign trade when we have to pay for our exports as well as our imports." McFadden Proposals for Ceding of Colonial Possessions for War Debt Resented in Great Britain-Wishes of Colonies Placed First-French Press Indignant. The suggestion by Representative Louis T. McFadden that Britain pay part of her debt to the United States by giving colonial possessions close to that country has met with a The decision given in the suit of the Public National up cool reception in London, it was stated in Associated Press Bank was referred to in our issue of Dec. 12, page 3902. accounts, Dec. 28, to the New York "Times," from which we Mortgage Guarantee Upheld by New York Supreme also take the following: There was no official comment, but one responsible person said "the Court-Judgment Awarded for $7,507 in Suit time is long past when loyal British subjects can be ceded to a foreign Involving Property in Brooklyn. power for a monetary consideration." What might be regarded as typical of the British opinion was a stateNew York Supreme Court Justice Untermyer has handed ment by Sir Harry Britain, who until recently was a member of the House down a decision in a case involving a guarantee of a mort- of Commons. "I should think," he said, "that the first consideration would be for gage in which, in a suit of the Liberty Trading & Finance Jamaicans for instance. GovernCo., Inc., against Robert A. Pines, he directed judgment the people in the British colonies-the ments cannot barter human beings. I know that British subjects in the for the plaintiff for $7,507, which included $907 interest. West Indies have a strong feeling of friendship for the United States, This is noted in the New York "Times" of Dec. 27, which but I don't think they would consider changing their nationality." Sir Harry, who returned only recently from the United States, said he also said: The suit involved a guarantee of the payment of a second mortgage covering the property at 1438 65th Street, Brooklyn. The defendant relied on the decision of the Court of Appeals in the case of Weisberg against Elias, but the Court said that the case was not applicable because the circumstances under which the guarantee was given In that case revealed an intention to limit the guarantor's liability to an Instalment on which there had been a default in payment at the time the agreement of guarantee was executed. The Court pointed out that in the present case the defendant indemnifies the plaintiff "against any loss that you (plaintiff) may sustain by reason of the non-payment of any instalment of principal and interest on this mortgage. The Court said: "That 'loss' is measured by the amount not collectable on the mortgage which became due in consequence of the non-payment of the instalment and interest. The defendant's letter of March 30 1929, extended the guarantee to the payment of the new second mortgage. In that letter the defendant stated that 'in consideration of your accepting a purchase money second mortgage covering premises 1438 65th Street, maturing April 1 1932, I hereby agree that the guarantee covering the original second mortgages on these houses shall continue in full force and effect.' "The defendant's construction of this agreementa" added the Court, "would render itself destructive and meaningless, for the defendant would have extended his guarantee on a mortgage which by the very instrument of guarantee would have ceased to exist. The parties could not have intended the agreement to serve as an idle gesture." Representative McFadden Wants Isles Ceded to Us for War Debt-Proposes Great Britain and France Give Us Colonies Off Our Shores-Views Them as Menace-Says Our Acquisition of Them Would Insure Peace-Norman Thomas Urges Debt Cancellation. A proposal that Great Britain and France cede to the United States colonial holdings in the Caribbean Sea and Central America as part payment for the war debts and as peace insurance was made on Dec. 27 by Representative Louis T. McFadden of Pennsylvania, who was one of the opponents in the House of President Hoover's debt moratorium. Ills latest proposal was made at the close of a radio debate over station WOR with Norman Thomas, Socialist leader, on the subject of reparations and the payment of war debts. An account of the two discourses is taken, as follows, from the New York "Times" of Dec. 28: Mr. Thomas advocated the wiping out of all debts, as well as German 7eparations, "wholly," he said, "for the peace of the world." Mr. McFadden, in upholding his side of the debate, agreed that Germany could never continue the payments of reparations, but asserted that this collapse did sot mean that the Allies should be permitted to cancel their debt to the United States of a totally different nature. "The trouble with Europe," he said, "is that her whole international financial structure is inflated with a $10,000,000,000 asset represented by the reparations which are expected to come from Germany and with which the Allies seek to pay all of their debts." "Peace cannot be furthered by wiping out the debt," he said, "but the debt can be used as an instrument for producing peace." Mr. McFadden then referred to the fact that Bermuda is only 30 hours from New York by steamer and five hours by air from Washington, and he painted the island resort as an invaluable naval and aerial warfare base threatening the United States. He described Jamaica, the Bahamas, the Windward and Leeward Isles, British Honduras, in close proximity to the Panama Canal, and Trinidad as potential bases of supply and attack In rase Great Britain and the United States engaged in war. ."1,11 in all," he said, "they represent about 400 different islands with 2,300,000 of population and comprising about 110,000 square miles." The French possessions in the same vicinity, Martinique, Guadeloupe and others in the group Mr. McFadden put under the same general heading. "Tf these possessions of Great Britain and France were given over to the United States, not only would they constitute a partial settlement of the war debts and a splendid gesture of peace, but also it would constitute the most effectual step in real disarmament that nations have ever taken." Mr. Thomas challenged as quixotic the spectacle of the United States thought most Englishmen and Americans feel the same Way about any such proposal. "In some parts of the United States the people are having a very hard time," he said, "but I don't think any one would take very seriously a suggestion that American cities or States which have been hit the hardest should revert to British possessions so that those who are suffering temporarily could obtain our dole." Some of the London newspapers which printed stories about Mr. McFadden's proposal identified him as "the man who charged President Hoover with having sold his country by agreeing to a moratorium on war debts" and quoted an American newspaper description of Mr. McFadden as "one who has long since identified himself as a person whore statements do not require serious treatment." Paris Associated Press advices Dec. 28 said: The "Journal des Debate" referred to-day in its leading article to the suggestion by Representative Louis T. McFadden that France and England pay part of their debts to the United States by ceding their colonial possessions in waters close to that country. "Never before," said the article, "have Americans been so badly informed on Europe and so badly disposed toward their former associates. It would be imprudent, therefore, to count on their spirit of justice and their sense of realities. It is regrettable, but that is the way it is." Such statements as that by Mr. McFadden made all the more apparent the necessity for a conference between Premiere Laval and Prime Minister MacDonald of Great Britain regarding reparations and debts, the article said. Effect of Bank Mergers and Consolidations on Volume of Clearings in Chicago-Survey by University of Chicago. Under date of Dec. 10 the School of Commerce and Administration of the University of Chicago has the following to say (by David A. Reozan) regarding the effect of bank mergers and consolidations on the volume of bank clearings in Chicago: In a study of bank clearings as an index of general business conditions In Chicago, 1900 to 1929, it was found that bank mergers and consolidations were among seven factors that tended to affect adversely the value of bank clearings for this use. To lend some obiective evidence to the effect of mergers and consolidations, data on inter-bank check clearings wete obtained from the following sets of banks prior to their consolidation or merger:(1) The Continental National Bank & Trust Co., and the Illinois Merchants Trust Co., (2) The First National Bank of Chicago and the Union Trust Co., and (3) The Foreman National Bank and the State Bank of Chicago. When these inter-bank check clearings figures are brought in relationship to the total check clearings in Chicago, the following percentage relations are obtained: A. Continental National Bank on the Illinois Merchants Trust-1927-1928, 1928. 1927. July 2.63% 2.45 Jan 2.75% July 2.66% Jan 2.61% Feb 2.50% Aug 2.67% Aug 3.05 Feb 2.59 Sept March_ ___2.56 2.45% March__.,..2.68% Sept 2.71 Oct 2.71 2.81% April April 2.71 Oct 2.51 0 Nov 2.83 2.48% May May 0 Nov 2.50%0 2.53% June June Dec 2.49% Dec 2.735 B. Illinois Merchants Trust on the Continental National Bank-1927-1928. 1927, 2.43% July 2.45% d Jan 2.34 Jan 2.16% 0 July 2.40% Aug 2.55% Feb 2.135 Aug Feb 2.495 2.48% Sept 2.41% March_ _2.50% March.,,,2.80% Sept 2.29% April 2.529" Oct 2.72 April 2.91% Oct 2.43%0 2.42%0 Nov 2.18% May May 2.70% Nov 1.88% Dec 2.33% June 2.269 2.45% Dec June C. Union Trust Co. on the First Na fondl Bank-Jan. 1928-Jan, 1929. 1929. 1928. July 0.68% 0.48 Jan 0.53 0.6O7 Aug Feb 0.71% seat 0.59% Jan March___ o.63%_ 0.62% Oct 0.51 April Nov 0.85 0.55 May 0.63% 0.66% Dec June D. First National Bank on the Union Trust Co.-Jan. 1928-Jan. 1929. 1929. 1928. 0.629' 0.66% July Jan 0.749' 0.72% Aug Feb Sept 0.629 Jan 0.67% March- -- _0.74 0.67 0.55% Oct April 0.67 o 0.58% Nov May 0.67% 0.65% Dec June JAN. 2 1932.] FINANCIAL CHRONICLE E. Foreman National Bank on the State Bank—Feb. 1929-Nov. 1929. 1929. Feb. 0.033% July 0.058% March 0.0467 Aug 0.051% Apr. 0.058 — Sept. May 0.058 Oct 0.060% June 0.056% Nov. 0.054% F. State Bank on the Foreman National Bank—Feb. 1929 -Noy. 1929: 1929. Feb. 0.029 July 0.048% March 0.032% Aug. 0.043% Apr. 0.046% Sept. — May 0.038% Oct 0.043% June 0.038% Nov 0.0382 Thus it may be assumed that from 5 to 6% of the total volume of check clearings in Chicago were eliminated when these banks consummated their consolidations or mergers. Metropolitan Life Insurance Co. Assisted Banks by $30,000,000 Loans. The Metropolitan Life Insurance Co. has spent about $30,000,000 in assisting banks in precarious positions, Frederick H. Eeker, President, said in testimony before a Senate Banking Sub-Committee considering the proposed Reconstruction Finance Corporation. We quote from Washington advices to the "Wall Street Journal" of Dec.24, which added: The assistance given by the Metropolitan was extended to banks in Philadelphia, Pittsburgh, Chicago, Toledo and Detroit. He said that other large financial institutions have similarly given aid to banks whose assets were in a frozen condition and held the opinion that the proposed reconstruction corporation could be of great benefit in this direction. 61 and counties and the bonds which are given certain specific ratings by the statistical agencies. For example, this class would include bonds which the Moody service ranks as triple A, double A, A and triple B. Similarly, it Includes the bonds belonging to the four highest ranks of Standard Statistics, Fitch, Bond and Quotation Service. In the New York "Times" of Dec. 30 it was stated: So far as the large New York City banks are concerned, write-downs to market prices as of Dec. 31 could be undertaken without any great hardship, it was said yesterday, since these banks have long maintained the bulk of their investments in extremely liquid, high-grade securities, such as United States Government obligations, bankers' bills and extremely high-class bonds. It is felt, however, that in view of the abnormal condition of the bond market the policy of writing down to market is unwarranted and might occasion unfair comparisons between institutions following this course and others adhering to the rulings of the banking authorities. The agreement to follow a uniform course was adopted at a meeting or bankers held at the New York Clearing House. It is purely an informal understanding which the banks are not bound by definite pledges to follow, but it is expected that no deviation from the general plan will be made. Calls for statements of conditions are expected to be made by the Comptroller of the Currency and the State Superintendent of Banks within a few days. As a rule the call date is fixed as the last day of the year for purposes of providing uhiform comparisons. Other quarterly calls are for dates approximating the last day of each quarter of the year. Comptroller of Currency Notifies Banks of Bond Policy —Sends Official Notice of September Plan. From the New York "Sun" of Dec. 31, we take the following: All National banks have received within the past 48'hours a letter front the office of the Comptroller of the Currency notifying them of the Comptroller's attitude toward the valuation of bonds in their statements of condition, it was learned to-day. The letter is of interest chiefly in that it puts officially before the banks what the Comptroller instructed National bank examiners to tell the banks informally last September, namely, that In the case of bonds enjoying the four highest ratings of any standard rating service depreciation would not have to be written off because of market slumps. In other words, the banks may carry the highest grade Effective Nov. 16 the New York Clearing House Association amended bonds at cost instead of at market. Section 5, Article XI, of its constitution to read as follows: The letter was opportune in the sense that it come just before the Dec.31 No member of this association (nor any non-member clearing through statements of condition were being made up. It also fitted in well with the a member) shall directly or indirectly make or attend to the service of any loan for the account of any person,firm or corporation, other than a bank, informal decision of the New York Clearing House hanks, reached at a banker or trust company, where such loan is secured in whole or in part by meeting this week and described exclusively in the "Sun" at the time, stocks and(or) bonds and(or) acceptances. Where such a loan is made or to follow the practice of the New York State Banking Department and of service rendered for the account of a bank, banker or trust company the the Comptroller of the Currency in regard to bond valuations at this year member (or non-member clearing through a member) shall charge and collect for so doing not less than at the rate of one-half of 1% per annum end. upon the amount of such loan during the period it shall remain in effect. The Comptroller's letter made no new rulings and added nothing to Reflecting the effect of this new rule, the Board's weekly member bank what had previously been told the National banks by the National Bank Examiners in each district. statement for Nov. 18 showed a reduction in brokers' loans by weekly For many years the policy of the State Banking Department has be reporting member banks in New York City "for account of othrrs" to $12,000,000 from $162,000,000 the week before, partly offset by increases to allow State banks and trust companies to value securities at book value In loans for own account and for out-of-town banks. Brokers' loans "for or cost, within reason, leaving it to the banks to observe sound practices. account of others" now embrace only (a) those made by weekly reporting The policy of all the large local banks has been for many years rigorously banks that are not members of the Clearing House and do not clear through to write down the values of bonds owned to market levels each year end. members, and (b) loans made by Clearing House banks for account of regardless of the size of write offs to be absorbed. The banks this year (1) non-member banks located in New York City, and (2) agencies of at their meeting this week agreed to follow a different course, chiefly foreign banks. because if they did not their action in writing down bonds rigorously would have reacted adversely upon smaller banks here and in the country at largo. Banks may not carry unsound, defaulted or speculative bonds at mt. New York Banks Agree on Uniform Plan for Valuation and the more liberal interpretation of values entering into National bank of Portfolios—Clearing House Institutions to Fol- statements does not mean that the bars have been let down for Improper practices. low Instructions of the Comptroller of Brokers' Loans—Recent Action by New York Clearing House Association—Comments by Federal Reserve Board. From the December issue of the "Federal Reserve Bulletin" we take the following: Currency— The following by David Lawrence, from Washington High-Grade Securities at Cost or Book Value— Full Depreciation Charged on Defaulted Bonds and Dec. 31 (copyright) also appeared in the "Sun": The Government of the United States in its relations with banks super25% of Market Drop on Order Issues. vised by the Comptroller of the Currency has determined to ignore cao Clearing House banks in New York City on Dec. 29 quotations on the New York bond market and regard intrinsic value as reached an informal agreement to adopt uniform practices the true basis for judging the worth of the securities held by such banks. "What we are always interested in," said Comptroller John W. Pols in the valuation of their bond investments in year-end state- to-day,"is the solvency of banks and not necessarily their liquidity. There ments,it was stated in informed quarters, said the New York are many fine companies which have issued bonds and there is every reason "Journal of Commerce" of Dec. 30, which also had the fol- to believe they will meet their interest charges and pay their principal at maturity. Why should we ignore those facts and take quotations from a lowing to say: blackboard in a market where there buyers. and We are all sellers no On Monday night [Dec. 281 members of the Clearing House Committee wish to protect banks that have bought good bonds from any such situation. held a special meeting at the Clearing House, but the question of security and while every case will have to stand on its own merits it is our plan valuation was not taken up as a regular Clearing House matter. to regard intrinsic value as the real basis for valuing the securities helcillw In general the banks will follow the instructions to National and State banks." bank examiners by the Comptroller of the Currency and the State Banking Superintendent, respectively. The Clearing House banks in the past have written down their investments Economists Meeting in Washington Say Federal Reto market and ordinarily would do so again this year. However, it is serve Banks Can Bring Recovery—Recommend felt that this would not be desirable now in view of the fact that smaller They Halt Liquidation by Ending Credit Contracinterior institutions would be able less easily to follow the same practice, so that the smaller banks would be made to contrast tion—Bill Buying Suggested—Prompt Organizaunfavorably with the larger ones. tion of Reconstruction Finance Board Urged— Bond Price Drop. Ten-Point Program Urged—Views of Col. Ayres During the past few months bond prices fell severely and the obligations of companies which aro in good condition in many cases and Others. are selling at levels which normally would be quoted only for bonds which had been deA proposal that the Federal Reserve System reverse its faulted. Were the banks in all cases to carry such obligations at their marpresent policy of credit contraction, so as to help draw into ket prices, it was pointed out, the result simply would be to increase the volume of liquidation, since the banks would be likely to unload them, thus the channels of trade and industry about $1,500,000,000 of increasing the pressure on the securities markets. The instructions to examiners by the Comptroller of the Currency are to currency "in hiding among the people," was the core of a divide bond investments into three classes. With regard to the highest series of suggestions for ending liquidation—"a Frankenclass, the banks are to carry investments at cost or book value in accord- stein threatening to destroy the hand which created it"— ance with their usual accounting practices. For the valuation of second class bonds a uniform method of valuation presented on Dec. 30 in Washington before representatives Is recommended and will be adopted by the New York banks in making up of a dozen economic, social and political organizations. We their annual balance sheets. The bonds will be taken at the lower book quote from a Washington dispatch Deo. 30 to the New York value or cost, and from this will be deducted 25% of actual market de"Times," which likewise stated: preciation. Belief that the deflation has gone far enough and that vigorous and Bonds which have actually passed into default will of course be carried aggressive action should be taken without delay was expressed by a at market with complete charges against price depreciation. group of economists, including Colonel Leonard P. Ayres, Vice-President of the Class of Bonds. Cleveland Trust Co.; Lionel E. Edie of the American Capital Corp. of The class of bonds to be carried without depredation charges of any New York; David Friday of A. G. Becker & Co. of New York, and Prokind include Government securities, the securities of municipalities. States fessor James Harvey Rogers of Yale University. 62 FINANCIAL CHRONICLE In addition to proposing action by the Federal Reserve System, Colonel Ayres declared that Congress should promptly organize the Reconstruction Finance Corporation and should give the Federal Reserve System broad emergency powers, including authority to rediscount the debentures of the Corporation. He also urged that Congress quickly adopt a definite budget looking toward a policy of limiting Federal expenditures. Independent Upturn Is Expected. Colonel Ayres was the most hopeful of the speakers. Addressing the joint luncheon of the American Statistical Association and the American Farm Economic Association, he declared that recovery of the United States did not have to wait for the economic revival of Europe, provided the steps which he outlined were taken. At the same time, Colonel Ayres warned that much unnecessary business wrecking would continue next year if price deflation and credit contraction continued. The depression "Is not yet half through," he added. "Since decline in business activity and commodity prices has not yet stopped, it seems probable that the return to normal levels of business will take more than two years after it gets under way and we do not know when that will be," he declared. He expressed a belief, however, that 1932 "is going to be the transition year of this depression." The economists who addressed the luncheon are known widely as business forecasters, but they hesitated to make definite predictions concerning the future of industry and trade in view of uncertainty which they held To to be engendered by the Federal Reserve's credit contraction policy. was the them, the policy of the Federal Reserve in the next few months that asserted was unknown equation upon which recovery depended. It if the present policy was not changed the proposed Reconstruction Corand stop poration would be of little avail in helping to restore confidence hoarding. As to Col. Ayres's views, we quote the following from the "Wall Street Journal" of Dec. 30: termed prerequisites Colonel Ayres listed these five conditions which he for recovery: and security commodity 1. Recognition of the fact that deflation of prices, and of loans, has gone far enough to make a turn possible. without waiting for 2. Realization of the fact that we can start back Europe. n Finance Reconstructio 3. Congress should promptly authorize the Corporation. broad emergency 4. The Federal Reserve System should be granted power to rediscount powers to pursue a liberal credit policy, including the Corporation. the bonds of the new Reconstruction Finance let the Treasury 5. Congress should quickly adopt a definite budget and financing that inform the bankers as to the amount of Federal long-term lending can be must be done this year. When the figures are known the [VoL. 134. the increase in the non-commercial banking activities by commercial banks through the use of investment and other non-commercial banking affiliates which have been attached to commercial banks in recent years." He gave his ten-point program designed to provide "a way out, assuming that we are willing to face the problems frankly," as follows: Ten-Point Program Enumerated. 1. Bringing all commercial banks within the Federal Reserve System. 2. Converting all commercial banks into National banks so that we may have a genuine National banking structure, enabling the effective carrying out of National and international money, banking, credit and fiscal policies. 3. Permitting branch banking, preferably confined to Federal Reserve districts for the present, with the possibility of Nation-wide branch banking in time. 4. Working out better proportions of the amounts of the different kinds of paper, particularly rediscountable paper, which should be held by member banks. 5. Doing nothing to impair the liquidity of Federal Reserve banks. 6. Bringing non-commercial banking affiliates under control of commercial banking authorities if it is not found preferable to sever these affiliates from commercial banks. 7. Placing thrift and savings accounts under the same restrictions as to investments as are applied to savings banks with segregation of assets, or in the maintenance of deposits, or in a combination of the two correctives, in giving the Comptroller of the Currency authority to examine and exact reports from every chain and group banking system that is interState in character, or in which a National bank Is one of the units. 8. Taking other steps to improve our system of bank examinations. 9. Removing obstacles to credit control which are inherent in the Federal Reserve System by revising our reserve requirements and by participating in an international clearing fund. 10. Developing the proper principles of credit control and in making a special effort to educate the public regarding them. Some of the other viewpoints brought out at the meeting are indicated in the following, which we quote from the Washington "Times" account Dec. 30: Dr. Edie Sees Overliguidation. Dr. Edit) drew the gravest picture of the situation. Declaring that the liquidation formula had failed and that its failure had driven most of the world off the gold standard, he warned that the deflation "has raised apprehensions in the minds of intelligent people of the safety and solvency of the banking system of every country in the world, barring none." Declaring that in the last two years commercial banks have reduced their loans from $35,400,000,000 to $26,400,000,000. Dr. Edie said that "the liquidation formula threatens the existence of the gold standard throughas out the world." If credit contraction continues for another year at planned. rapid a pace as it has in the last year, he added, "grave apprehension over recovery since over, half not is depression this that Colonel Ayres stated responsible quarters." The gold to continuing our gold standard would be entertained in Is always slower than decline, and the latter has not ended. Many of the "arch disciples" of liquidation have pointed out from time nations, they had which prices are tied, he said, is abnormally distributed among the it payments, to time that liquidation is over, he continued. "but developed and that maldistribution, caused by tariff barriers and war debt built a fire which they could not quench; liquidation had not cured itself, cured. is not yet in process of being Frankenstein threatens public works but had become a torrent out of control, and their He also hit at proposals like the one for a $5,000,000,000 possessions and to to destroy the hand which created it." bond issue, saying this would add to our unproductive "We squanour debts without removing the causes of our difficulties. Increase in Credit Suggested. squander our dered our way ino this depression," he said, "but we cannot The cardinal principles of an immediate program by the Federal Reit." of these points: way out their minds serve, according to Dr. Edie, should contain should Colonel Ayres believes it is the duty of economists to make up "1. Contraction of the volume of member bank reserve balances begun be can recovery regarding the level and time from which a business be definitely halted. disposal. their at means every by and to make their conclusions public "2. Excess reserves should be piled up on member banks to an amount be equal to at least 5 to 10% of member deposits, and this excess should The same paper said: held there stoutly until the contraction of bank credit is checked. neces"Depression Like in 40's and 70's." "3. Federal Reserve credit should be increased by the amounts and those which sary to accomplish these ends. The amounts would be much less than Points of similarity between the present depression Finance P. War Leonard revived Colonel the huge sums mentioned in connection with the lasted six years in the 40's and 70's, as stressed by Corporation. Ayres, include: kinds. all of debts of accumulation rapid a All three were preceded by "4. Probably the pattern can be followed under the Federal Reserve total declines Commodity prices have fallen 39%. exactly as much as Act as it now stands, but if not, then it is in order to amend the law. the in those two periods. Amendments for this purpose would be more justifiable than some of advocated in high circles. Failures were widespread and numerous. one of amendments recently proposals, moratorium prompt equally be various by should banks central characterized All have been "5. Once the tide is turned, the in clamping the lid down on any inflationary tendencies." which became a national law in the 40's. in the 40's and 57% is no need for any inflation scare whatsoever in the constructive "There Rail stock prices are off 75%, compared with 59% reached in 1877 and 1839. plan here outlined," he added. in the 70's; and their average is down to the levels as far as in not though 40's, the in than farther fallen Rail bonds have "Civilization at Slake." the 70's. await redistribution of "Nothing less than the monetary foundations of Western civilization Colonel Ayres believes recovery in prices must program he considers works public are at stake in the present world-wide period of depression and readjustgold, which has not yet begun. A large squandered our way into this de- ment," he asserted. no permanent remedy, for, he says, "we out of it." Mr. Friday said that bank failures had brought with them the most Pression. but we cannot squander our way by the public, the New serious obstacles to recovery, the hoarding of $1,500,000,000 which and, if According to the Washington correspondent of purchasing power that is lying utterly idle, representing program designed applied to the purchase of securities, would give the bond market a different York "Journal of Commerce," a ten-point Nation, including turn. to strengthen the banking structure of the But it Is impossible, he continued, to make any positive pronouncement in each of the 12 system banking branch a of ent establishm to the return of prosperity because of the Federal Reserve's policy. as Dec. 30 to the If the investment holdings of banks continue to decline, this would mean Federal Reserve districts, was presented on Association and further bank failures, renewed hoardings, increased rediscounts "and a joint meeting of the American Economic Walter E. hopeless outlook indeed," he said. the American Statistical Association by Prof. "The institution which can break this vicious circle, by the use of its School powers economics, of to buy Government bonds in the open market, is the Federal ReSpahr, Chairman of the department account also serve System," Mr. Friday said. "Whether it will change its policy from of Conuneice, New York University. That henceforth and break this circle is one of the contingencies upon which the said: failures during the past Calling attention to the vast number of bank unwise division of decade, which he declared were due in large part to legislative bodies 49 commercial banks into National and State banks with Spahr asserted that regulating and granting special privileges, Professor necessary, and urged revision of the present banking laws is undoubtedly "join hands to that legislators, the press, social scientists and bankers correct these defects and save ourselves from these disasters." 7,000,000 Depositors Hit. have conProfessor Spahr estimated that over 7,000,000 depositors 0 of deposits in tributed to the great total of more than $1,700,000,00 less than 114.000 banks that failed during the years 1921-29; that not during this period shareholders suffered losses, and that such failures of loans—chiefly 0 $2,000,000,00 precipitated liquidation of approximately all three respects small loans. "During the last two years the situation in has grown much worse," he said. . . . in bank failures Professor Spahr contended the reason for the increase Reserve System and resulted from "too many banks outside the Federal future of prosperity depends." Bill Buying Is Proposed, Federal ReProfessor Rogers agreed with the other speakers that the serve System provided machinery for easing the credit structure, through open market purchase of bills and Government securities, providing such purchases were maintained courageously and persistently. in an address J. S. Eastman of the Inter-State Commerce Commission, before the American Ecoon "Transportation by Rail and Otherwise," to-night, said its sessions closes which dozen the nomic Association, one of alleged subsidy by the States he hoped that the controversy concerning the motor buses, water carriers and and the Federal Government to trucks, be set at rest by a thorough airplanes in competition with the railroad would adding that a beginning should investigation, and impartial Congressional regulation of buses. be made as soon as possible in inter-State of Schools of Social At the annual meeting of the American Association Scheel for Jewish Work, Dr. Maurice J. Karpf, director of the Training President. sleeted was City, Social Workers of New York JAN. 2 1932.] New Officers Elected by Economic Association. For Little Rock Branch—Moorhead Wright, Little Rock, Ark. Each The Economic Association elected on Dec. 30 at Washing- was appointed for a three year term. The Board of Directors of each branch consists of seven members, four ton George E. E. Barnett of Johns Hopkins University, of whom arc appointed by the Federal Reserve Bank in St. Louis, and President, and F. S. Deibler of Northwestern University, three by the Federal Reserve Board in Washington. The Managing Director Secretary-neasurer. Vice-Presidents elected were: E. Heil- is elected annually, while the other six directors serve for terms of three years each. man of Northwestern University and Benjamin M. Anderson, a Chase National Bank economist. Glass Banking Committee Report Finds Federal The Statistical Association elected Irving Fisher of Yale Reserve Board Lacked Forceful Domination During President; Willford I. King of New York University, SecreSpeculative Era—Cites Evasion and Abuses Under tary-Treasurer, and Frank Ross of Columbia University, Banking Laws—Corporate Affiliate and Other editor. Loans Stressed. Portending important restrictions on present day banking State of San Paulo Bonds Interest Payments. Speyer & Co. and J. Henry Schroder Banking Corporation practices, some of which contravene existing banking laws, are requested by the Government of the State of San Paulo a report analyzing oral testimony, prepared briefs and answers to banking questionnaires has been presented to the to publish the following announcement: With reference to the announcement of June 20 last. the Government (Senator) Glass banking subcommittee by Dr. H. Parker of the State of San Paulo has duly deposited with Banco do Commercio Willis, its technical adviser, said the Washington correse Industrie, San Paulo, to the order of Speyer & Co., as Agent for the pondent (Clarence L. Linz) of the New York "Journal of State of San Paulo 40-year 6% Sinking Fund Gold Loan of 1928. Mikeis 4,139,166 equivalent at 12 cents per Mike's to $496,700. the amount of a Commerce" on Dec. 27. The account from which we half year's service of the loan. The Government regrets that owing to quote,„describing the report, said: exchange difficulties it has been unable to remit any of these funds to New York and that there are no funds available in New York for the service due Jan. 1 1932. The entire financial situation of the State of San Paulo is engaging the fullest consideration of the Government, and a further announcement will be made at the earliest possible moment. Speyer & Co., in making the above public under date of Jan. 1, state: As previously published by the bankers, the Jan. 1 1932 coupons of the State of San Paulo 15-year 8% Sinking Fund Bonds of 1921 and ot the 25year 8% Secured Sinking Fund Bonds of 1925 will be paid on that date. The report, a virtual textbook on the subjects It surveys, reveals abuses and circumventions of the law, lack of forceful domination of the situation in time of necessity by the Federal Reserve Board and discloses the harmful operations of such outside interests as corporate affiliates and so-called "loans for others." Invasion by commercial banks perhaps too far into the field of security loans, as dwelt upon, gives rise to the thought that perhaps here, too, is an object for the further legislative action by Congress. Indicating that sharp criticism of the Federal Reserve authorities for their alleged failure to check "the very significant and mischievous role played by brokers' loans for Death of John Perrin, Former Chairman of Federal the account of others during the stock market inflation" is Reserve Bank of San Francisco. voiced in the report of the subcommittee, the New York John Perrin, well known in banking circles throughout the "Times," in giving details of the report in a Washington country, died in a hotel in Washington, D. C., on Dec. 27, dispatch Dec. 26, stated: from a heart attack. Mr. Perrin, who was formerly Chair- "No special steps were reported by the Federal Reserve authorities to man of the Board and Federal Reserve Agent of the Federal investigation" such loans "for the purposes of future control until the present investigation was ordered by the Senate Committee on Banking Reserve Bank of San Francisco, was 74 years of age. and Currency," says the report. "At about that time the Federal Reserve In a sketch of Mr. Perlin's career, a Washington dispatch Bank of New York set on foot a thorough-going analysts of the brokers' loan situation, which has been furnished to the Committee." Dec. 27, to the New York "Herald Tribune" said: The findings From 1906 to 1913 Mr. Perrin was a member of the Currency Commission appointed by the American Bankers' Association to stabilize the nation's currency. This Commission was active in preparing for the passage of the Federal Reserve act in 1913, and during the six weeks before the enactment of the bill Mr. Perrin remained in Washington as the Commission's representative during the debates. Mr.Perrin was born in Rossville, Ind., on Jan. 17 1857, the son of James G.Perrin and Margaret Cason Perrin. He was graduated from Yale College In 1879 and engaged in general business for ten years. After passing a year studying financial methods in Europe he became Vice-President of the Perrin National Bank of Lafayette, of which his father was president. In 1899 he organized the American National Bank of Indianapolis and was its President until its consolidation in 1910 with the Fletcher National Bank. He remained as Chairman of the board of the new bank for two years and in 1912 he removed to San Francisco. In 1914 he took the position with the Federal Reserve Bank, retiring in 1926. Since that time he has divided his time between Pasadena and New York. of the subcommittee deal extensively with banking practices in the decade since the World War, paying particular attention to the increased proportion of security loans made by banks and to the growth of security affiliates of banks, the operation of which is described as "on the whole unfavorable" since the market collapse of 1929. Bank loans on securities and investments in securities combined are recorded as increasing from 38% of the total banking resources in the United States in 1921 to 41% on June 30 1930. Growth of Brokers' Loans. The growth of brokers' loans in the speculative era is emphasized by comparing them with previous totals of such loans. The highest point they had reached before 1922 is put at 51,422,000,000 in 1929, while on Oct. 2 1929 the total was 56.804,000.000, on which date banks had outstanding $1,071,000.000 of their own funds, $1,826,000.000 for the account of out-of-town banks and $3,907,000,000 for "the account of others." The restrictive policy of the Federal Reserve System began in 1928 and had comparatively small effect, according to the report, which presents one compilation showing that while brokers' loans increased slightly between 1928 and October 1929 they declined in percentage as Changes in Advisory Council of Federal Reserve Board. comparedOctober with security loans to other customers. Meanwhile in that year According to the December number of the"Federal Reserve loans for the accounts of others to brokers almost doubled. This is illusBulletin" the Federal Advisory Council at its meeting on trated in the following table: October 1928. October 1929. Bank loans to brokers and dealers-- $2.749.000,000 $2,824,000,000 Nov. 17 1931, made certain changes in its organization as a Bank sec. loans to other customers- 6,375,000,000 7.875,000.000 result of the recent resignation of B. A. McKinney, of Loans to brkrs. & dealers for others- 3,701.000.000 6.416,000.000 Dallas, former President of the Council, to become Governor of the Federal Reserve Bank of Dallas. The "Bulletin" says: Total $17,115,000,000 $12.825,000,000 Thus it is deduced that "restrictive polices of the Federal Reserve authorJ. H. Frost, of the First National Bank of San Antonio, succeeds Mr. ities during this period were really effective only in curtailing loans by banks McKinney as representative of the eleventh district. Walter W.Smith, of to brokers and dealers." St. Louts, former Vice-President of the Council, has been elected President Extent of Security Loans. to fill the vacancy caused by Mr. McKinney's resignation, and Melvin A. At the close of 1930. 18 unnamed banks in New York City had outstandTraylor, representative of the seventh [Chicago] district, has been elected Vice-President. These officers, as ex officio members, and Messrs. Loeb. ing security loans totaling $3,265,000,000. of which 42% had been made Prince, and McLucas will comprise the executive committee of the council. to brokers and dealers. Twenty-six banks outside of New fork City had made 38% of such loans in their books to brokers. At this time a Federal Walter Lichtenstein, of Chicago, will continue as Secretary. Reserve Board member bank call report showed that in New York City 41% of all security loans by member banks had been advanced to brokers, in Directors of Federal Reserve Bank of St. Louis Name Chicago 34%, in all other Reserve cities 14%. and among the country 5%. Directors of Branches—Appointments by Federal banks "Brokers' loans of all kinds constituted 50% of all security loans. inReserve Board. cluding both bank and other sources in October, 1928." the report goes on. year later, at the peak of the stock market inflation, they constituted According to announcement of John S. Wood, Chairman "A 53% of the total. In June, 1931, the proportion was reduced, however. of the Board of the Federal Reserve Bank of St. Louis, the to 22%. "It will be seen that, outside of New York, the tendency is for the larger directors of the parent bank have elected the following banks to advance a greater proportion of their security loans to brokers branch directors to succeed those appointed by it whose than do smaller institutions whose security loans are not only a smaller percentage of total resources but are also made to individual local customers terms expire at the end of this year: For Louisville Branch—John T. Reynolds, Greenville, Ky., for three in the main." Banks are held to have a legitimate place in the security market as "seyears, and John T. Moore, Louisville, for one year. credit granted by the banks furnishes funds to industry for proFor Memphis Branch—J. W. Alderson, Forrest City, Ark., for three curity ductive purposes, just as would business loans," but with the difference years, and W. H. Glasgow, Memphis,for one year. that security loans may decrease a bank's liquidity if the security market For Little Rock Branch—Jo Nichol, Pine Bluff, Ark., for three years, becomes dull. and A. F. Bailey, Little Rock. for one year. "The granting of credit to business indirectly through the security loan The Federal Reserve Board has appointed the following rather than directly through the commercial loan also reduces the degree of control possessed by the bank over the flow of credit to business. The bank branch directors to succeed its appointees whose whose knows the purpose for which most commercial loans are made and can of this end the year: terms expire at proceed to cut down the amounts of such advances when thought desirable. For Louisville Branch—W. W. Crawford, Louisville, Ky. "In the case of security loans, on the other hand, the bank is interested For Memphis Branch—S. E. Ragland, Memphis, Tenn. primarily in the quality of the collateral, and in the nature of the case it 64 FINANCIAL CHRONICLE can have no real control over the utilization of the proceeds by the original seller of the security." Rise in Loans Illustrated. Security loans outstanding in 1921 are compared with the same kind in 1930 in the following table: Increase or Class of banks. decrease. June 30 1921. June 30 1930. National banks 26 $5,484,713,000 $4,361,884,000 State banks 6 1,435,529,000 1.525,894,000 Trust companies--- 1,704,065,000 4,534.946,000 166 [VOL. 134. tion. For example, a margin o 20% would be considered sufficient where a loan is secured by listed stocks of high-class railroads, public utility or industrial corporations, and when prices are not above real values. At times when prices appear to be above intrinsic values and out of proportion to past earnings,the margin requirement would be increased proportionately. Also in cases where the loan is secured by stocks of less desirable character or where the diversification is poor, margin requirements would be materially increased. To the question, "how do you arrive at a valuation of stocks and bonds having no regular market value," the answer was: "A valuation would be fixed upon the basis of audited or certified statements of the corporation, if available. Consideration would also be given the general credit standing and reputation of the company. In the case of bonds, the security is generally one or more of the following types: (1) A mortgage upon real property. (2) A collateral trust with securities pledged with a trustee. (3) Debenture bonds based upon the general credit of the issuing corporation. "In determining values, consideration is given the following: "(1) In the case of mortgage and collateral bonds, the real value of the security actually pledged. "(2). In the case of debenture bonds, the equity back of the bonds and the terms of the indenture protecting the equity. "(3) In all cases consideration is also given to the earnings of the company, sinking fund provisions if any, and other provisions for repayment of the issue, the character of the industry and the progress trend. "If a bond meets all of these tests satisfactorily, it would generally be appraised at its cost or face value, which ever is less. If any one or more of these factors appeared unsatisfactory, the appraisal would be fixed accordingly. Consideration would also be given to the proportion of bonds of this class in relation to the total portfolio. "In the case of stocks, consideration would be given to the following factors: "(1) Real equity back of the stock. "(2) Whether or not there were senior securities, and if so, the relation of their equity to the total equity. "(3) Ratio of quick assets to current liabilities. "(4) Relation of operating profits to sales and to capital. "If all the factors were favorable, a valuation would be fixed mainly based upon the equity and the earnings. Generally speaking, very few unlisted stocks are found in the investment account of banks. The unlisted stocks found among the collateral for loans are generally those of local Industries with respect to which information is usually available. Margin requirements with respect to such securities would be much higher than with respect to listed securities. If any considerable portion of the assets of a bank were based upon such security or collateral, the condition would be subject to criticism." Q.-Do you find evidence of many security loans with collateral of a value less than the amount of the loan? Are these mainly in small or large banks? How do you handle these security loans, the value of the collateral of which is less than the amount of the loans? A.-Under-margined loans are occasionally observed, but the number of them and the amount involved have not been sufficient to present any problem. Loans predicated mainly on real estate equities have given many banks serious concern and in not a few cases have resulted in substantial losses. Real estate values in some localities have declined to a point where the first mortgages, which are usually held by savings banks, insurance companies and building and loan associations, leave little equity in the property. Many of the real estate loans, the security for which is now inadequate, judged by present real estate values and conditions, appeared to be justified at the time they were made, based on sales of property that were than taking place. This, of course, is due to the present depression in real estate which has resulted in many mortgage foreclosures. It is not possible to classify completely the banks having such loans, but generally speaking it is our observation that the medium-size banks are more apt to have loans of this type than are either the small country banks or the large city banks. In the small country banks, due mainly to their restricted loaning limit to one borrower, very few loans are observed with collateral of a value less than the amount of the loans. Appraisal of the unsecured portion of the loan is based on responsibility of borrower as shown by statement or other evidence of ability to liquidate the loan, consideration being given to the general reputation of the borrower and his ability to lodge additional collateral, as well as his present earning capacity. Q.-Do you take the cost or market value of investments in examining the condition of a bank? Is there any other valuation basis you use? A.-For the purpose of appraising the assets of a bank and determining the amount of its net capital funds,its investments in securities are appraised at their market value, regardless of cost, and in the cases where no market value is available the value is arrived at on the basis described in asnwer to question number 2 (with reference to examination of security loans backed by unlisted collateral). In the case of appraising the banking house which, if owned by the bank may be considered as an investment, it is allowed at its book value unless that value appears to be excessive, in which case it is allowed at what is considered to be a fair valuation. Such property is not ordinarily allowed at more than its book value. The answer to the question "On which type of investment do you find that the banks you have examined have suffered the most severe losses" was as follows: "Generally speaking, banks in this district have suffered their greatest losses as a result of their investments in bonds. In the case of member banks other than National banks where State laws permit investments in stocks, we have noted a few instances where very substantial losses may result from such investments. Generally speaking, however, even where State laws permit, banks do not invest very largely in stocks. "Banks have suffered losses as a result of investments in practically every type of bond. This condition results from a number of factors: "(I) The desire for the high yield which is frequently made necessary by the payment of too high a rate of interest on deposits. "(2) Failure to investigate properly and check issues before purchase. "(3) General inability and lack of experience with respect to the purchase of bonds. Among the bonds showing the most severe depreciation in values are those issued by small industries, public utility holding companies, bonds originating in certain foreign countries and those based upon the security of real estate, such as hotels, office buildings and apartment houses." Q.-Have you noted any security loans based upon stocks or bonds of real estate holding companies in the portfolios of banks within your jurisdiction? What proportion of all security loans is based upon real estate holding company securities in your opinion? What is your attitude toward such loans and how do you determine their soundness in examination? A.-Loans of this kind are occasionally noted, but in the case of most banks they are comparatively few. It is seldom that the proportion of such loans in a particular bank is sufficiently large to cause concern. Such loans are not looked upon with favor, due to general lack of liquidity and difficulty of determining real value. Their soundness is determined by marketability, valuation of properties, location, income and margin of safety. Criticism, if any, would be based upon the amount of such loans as compared to the total loans of the bank, as well as upon the character of each particular loan. Total $11.455,188,000 50% $7,591,843,000 The classification "security loans" was more inclusive in 1921 than in 1930, so that the increase was actually greater than shown in the table, the committee finds. The 1921 totals apply to "all collateral loans other than real estate." The purposes of security loans placed as of Dec. 31 1930, at ten banks in New York City, unnamed but indicated by arbitrary numbers, are shown in the following table: Prop'n for Prop'n the pur. of for Comm. Loans on Car. Sec. Ind. or Art. Bank. Stles.a. Bonds, Per Cent_._:__ *80 *20 No. 1 $823,000,000 *5 *95 No. 2 525,000,000 *40 *60 No. 3 x311,000,000 42.9 57.1 No. 4 231,000.000 84.7 715.3 No. 5 217,000,000 138,000,000*543 No. 6 . -1.03 110,000,000 No. 7 *75 *7.5 105,000,000 No. 8 *98 *2 104,000,000 No. 9 90 10 33,000,000 No. 10 *Designated as an estimate, approximation or belief. x For head office and larger domestic branch, given as 43.5 and 56.5. based on undivided analysis of loans. y Including consumptive loans. Loans by New York Banks. Ten New York City banks gave statistics showing the amount of security collateral loans they had made to controlled or affiliated institutions by the end of 1930, as well as the maximum amount of these loans in each of the preceding five years. The maximum loans for the five-year period were: Amount. Date. Bank. Amounts. Date. Bank. 1930 No. 6 1929 25,020,000 $28,820,000 No. 1 1927 No. 7 18,100,000 No. 2 1929 7,100,000 1927 No. 8 31,296,849 No. 3 1929 No. 4 825,000 1930 No. 9 25,504,966 400,000 1930 1930 No. 10 5,500,000 No. 5 Of eighteen New York City banks answering the questionnaire only seven had collateral loans outstanding to affiliates at the end of 1930. Several that had advanced large credits to affiliated security corporations previously had liquidated them by that time. The maximum loans to security affiliates by twelve banks outside of New York City were: State in Bank. which located. Amount. Date. No. 1-Massachusetts $7,985,000 1930 No. 2-Massachusetts 2,600,000 1927 No. 3-New York 4,700,000 1929 No. 4-Ohio 4.120.000 1930 No. 5-Ohio 1.021.000 1930 No. 6-Illinois 21,000.000 1930 No. 7-Illinois 4,920.000 1929 No. 8-Michigan 1930 6,788,264 No. 9-Minnesota 1928 394.650 No. 10-Minnesota 1930 937,266 No. 11-Missouri 1926 1,500,000 No. 12-California 1930 600,000 Extent of Portfolio Shrinkage. Financial results of the operation of security affiliates after the 1929 stock market collapse were "on the whole unfavorable," the report sets forth. Losses of substantial size were not reported in each instance, the chief except ons being those institutions which restricted themselves to the distribution of high-grade bonds. Variations in the market value of stocks and bond holdings compllcated the fixing of the earning power of security affiliates in any one year,as in the case of all companies whose assets are chiefly securities held for investment. Although difficulty was found in determining the extent of portfolio shrinkage, the following data for fourteen banks for 1930 is presented: Approx. decline Aproz.decline inmkl.oat. in mkt. val. Bank. Plfoliofor year. Bank. Pifoliofor year. No. 1 812,500,000 No, 8 4,000,000 No. 2 12,500,000 No. 9 10,000,000 No. 3 29,562,330 No. 10 2,500,000 No. 4 4,608,835 No. 11 1,500.000 No. 12 No. 5 (a) 1,200.000 13,235,000 No. 13 No. 6 45,239 851,000 No. 14 No. 7 950,000 basis. market -value Books kept on (a) Banks were also asked to list the five largest syndicate or group operations in which their security affiliates shared in 1929. Replies to this question indicated the varied nature of these major commitments. One bank reported the five largest sharings of its affiliate, together amounting to $75,963,695, as follows: 1. Market stabilization account formed during the crisis of 1929. 2. Texas Corporation 5% convertible bonds. 3. International Hydroelectric 68. 1944. 4. Canadian International Paper 65, 1949. 5. City of Chicago Board of Education 6% tax anticipation notes. The affiliate of another large Eastern institution reported that its five largest sharings in 1929 amounted to $94,194,165. as follows: I. Bethlehem Steel Corporation (28% interest in original underwriting group to underwrite sale of 795,000 shares to stockholders. 3. American Cyanamid Company (underwriting entire issue of 808,359X shares of common B stock). 4. Texas Corporation (20% interest in purchase group of $100,000 5% debenture issue). 5. P. Lorillard Company (underwriting entire issue of 545,024 shares of common stock). The security affiliate of another large bank reported the following five as its largest participations for 1929: 1. New York Central short-term revenue bills. 316,750.000. 2. Offering of shares of an affiliated investment trust, 915.000,000. 3. Offering of shares of an oil holding company, 911,695,000. 4. Republic of Cuba Serial 53 % certificates, $8,001,000. 5. Richfield 011 6s. 56.620,000. Total-$57.696,000. - Answers to Questionnaire. The six questions asked of Federal Reserve Banks and other central From the "Journal of Commerce" account of the report agencies and the answers filed by the New York Federal Reserve Banks we take the following: follow: Q.-What criteria do you use in analyzing the soundness of Security Loans Stressed. loans? A.-That the loans are sufficiently margined by marketablesecurity securiA questionnaire sent out by the sub-committee asserted that direct loans ties with no undue concentration in any one issue or type of collateral. Margin requirements would vary somewhat, according to the type of by banks on securities now constitute about 80% of all security loans. collateral supporting the loan, current prices and the degree of diversificaIt added that the purpose and soundness of such loans must be better JAN. 2 1932.] FINANCIAL CHRONICLE known in the future if effective credit control policies are to be develop ed in the banking system. The soundness of security collateral loans of commercial banks is of vital significance, in view of the unprece dentedly large total of such loans outstanding at the present time. It believe that present d practices in examining such loans would throw considerable light on their soundness. Bond investments of commercial banks also have shown marked increase in recent years. Another questionaire set forth the fact that a major obstacl e to effective credit control during the inflation period of 1927-29 was the rapid growth of loans to brokers from non-banking sources. Such loans were largely handled by New York banks, but substantial sums flowed into the money market from other sources as well. 31,500,000,000 Brokers' Loans. It was shown that private banking houses,foreign bank agencies and similar channels fed some 51,500.000,000 at the peak to Stock Exchange members, both for their own account and clients. Brokers' loans for the account of others constitute a peculiar development in the credit structure, since, the report continued, unlike bank loans, they do not give rise to a corresponding increase in bank deposit s. They present merely the transfer of already existing deposits to other accounts. Nevertheless, it was concluded, in practic e they constitute potential liabilities of the banking system, since on their concerted withdrawal they are replaced by loans advanced for the account of banks themselves, as shown by the October 1929, experience. A declaration of the effects of banks' participation in security markets meets the contention advanced by many, including members of the Senate Finance Committee, that security loans deplete credit reserves to the disadvantage of business and agriculture. The significance of rapidly mounting bank loans on securities and bank security investments is imperfectly understood, even by a large proportion of economists and students of banking, the Willis report asserted. A clear grasp of the fact as pointed by some that security credit granted by banks furnishes funds to industry for productive purposes, just as would business loans, it was added, would quickly dispel the widespread popular fallacy that if the bank advances funds on securities the supply of bank credit available to business is thereby reduced. Discusses Security Markets, Credit. "The security markets can not absorb credit, but merely furnish a channel through which it is directed to specific users," the report continued. "If credit finances the sale of new securiti es, corporation or governments originating these securities get the proceed s of the loan and can use them for their purposes. If the loan is utilized to finance the purchase of already issued securities the proceeds of the security advance will go to the seller of the securities, who may use them in turn to buy new securities, to purchase goods, or perhaps to buy other already issued securities. In the latter case the funds are transferred a third time, but sooner or later the proceeds of security loans find their way at one or more removes into the hands of some seller of securities who will utilize them for business or consumption purposes." It was pointed out that security loans are less liquid than self liquidating commercial loans and the former reduces the degree of control possessed by the bank over the flow of credit to busines s. The bank knows the purpose_for which most commercial loans are made and can proceed to cut down the amounts of such advances when thought desirable. Lack of Bank Control. In the case of security loans, on the other hand, the bank is interested primarily in the quality of the collateral and would have no real control over the utilization of the proceeds. Further, if securit y loans become excessive a downward movement in security prices will bring wholesale forced liquidation,such as occurred during the "stock market panic"of 1929 and on recurring occasions thereafter as the volume of security credit is reduced. During the period of widespread confide nce and active business stimulation of the capital market resulting from rapidly increasing security loans by banks and bond purchases by such institut ions tends to stimulate capital investment far more than would otherwi se be the case. At the same time, the report continued, overdevelopment that ordinarily occurs in various fields during such a period is correspondingl y exaggerated, making the subsequent reaction and period of deflation and liquidation all the more severe. "The experience of the past 10 years lends spectacular confirmation to the view that the more intensive particip ation by commercial banks in the capital market exaggerates financi al and business fluctuations and undermines the stability of the economic organiz ation of the country," the report concluded. The sub-committee inquired through one of its questionnaires: "Do you think the present restrictions on bank investments in securities adequate? If not,state suggestions for change." Present Restrictions Sufficient. The almost universal response was that present restrictions were sufficient. One large New York bank qualifie d such an answer by saying that they were adequate for central Reserve cities, implying that banks outside New York and Chicago should be restricted further in their security purchases. A New England bank stated: "Manag ement will be always the principal factor, but the Comptroller should have any reasonable increase in his powers or appropriations that he desires." No indication was given as to the direction in which such extension of thought desirable. A more radical suggest the Comptroller's powers was ion from another New Englan d bank was that "commercial banks with savings departments should be required to invest, savings deposits in legal securities." A Philadelphia bank, complaining that it has been too easy to get into the banking business and that too many bankers had little or no experience In times of depression until the present time, suggested that capital requirements be increased. Violations of Section 52 of the Revised Statute s limiting loans made by National banks to one interest to 10% of their capital and surplus are hinted. During the public hearings held by the Glass sub -commi question of repurchase agreements was given some prominence ttee the in the case of some of the witnesses. Tells of Window Dressing. Such agreements, the report held when largely resorted to obscure the actual statue of the bank: and, it was added, these agreeme nts are used at times for window dressing purposes by individual banks. The investment account is swollen and the collateral loan account reduced by the amount of the resale agreements. In addition, substantial liabilities may exist in the form of repurchase contracts not revealed in the regular stateme nt of condition. It is anticipated in political circles that drastic steps will be taken by the committee to curb the practice of National banks setting up corporate affiliates to do that which the parent institutions are preclud ed by banking laws from undertaking. 65 The proposed new legislation may go so far as to fix a date for the termination of bank affiliation with such corporations. In any event it is to be expected that there will be immediate prohibitions set up, such as against interlocking directorates and manage ment, investment by the corporations In the stock of the parent corpora tions to meat objectionable features, affectin and vice versa, and, in general, g the position of the parent bank and summarized in the report as follows: (1) The security affiliate may borrow money from the parent bank. This relationship is very prevalent. (2) The affiliate may sell securities to the bank or another of its affiliat es under repurchase agreements, or vice versa. (3) The bank is closely connected in the public mind with its affiliates, and should the latter suffer large losses it is practically unthinkable that they would be allowed to fail. Instead, the bank would normally support it by additional loans or other aid, thus becoming more deeply involve d itself. The knowledge that the affiliate has suffered large losses may in itself be sufficient to cause unfavorable rumors, however unjustified, to spread about the bank. (4) The bank, to relieve the affiliate of excess holdings, may purchase securities from it. In one case of a large New York institution, for example, two blocks of foreign bonds, aggregating approximately $5,000,000, which were included in the portfolio of the affiliat e as of the end of 1929, were given in the list of the five largest holding s of the parent bank at the end of 1930. Loan Policy Outlined. (5) The bank may lend much more freely to custdme rs on issues sponsored by the security affiliate, in order to facilitate their distribution, than it would otherwise do. Also it may prove more difficult to insist upon the maintenance of adequate margins on these securit y loans than on other such advances, in view of the fact that custome rs are encouraged to make the loans by the bank's own affiliate. (6) The good-will of the bank with its deposit ors may be adversely affected to a serious degree when the latter suffer substantial losses on security issues purchased from the affiliat e. Because of the tendency of the selling organization of the affiliat e to consider the bank's depositors as its preferred list of sales prospects, this condition may become an important handicap to a bank during a major period of security market deflation. (7) Operations by the affiliate in the may cause undesirably wide fluctuations market for the bank's own stock in the latter. Also, efforts made in some cases to push the sale of the bank's stock through the affiliate to depositors of the institution hurts the position of the bank when its shares suffer a major market decline subsequ ently. Variations in Net Assets. (8) Wide variations in the net asset value, earning power, and dividend paying ability of security affiliates tend to make bank stack price fluctuations much greater than would otherwi se be the case. (9) Existence of the affiliates may induce the bank to make unwise commitments, in the knowledge that in case of need they can be shifted to the affiliates and thus be remove d from the bank's condition statement. (10) Knowing its access to the resources of the bank in case of need, security affiliates in their turn may tend to assume various commitments less cautiously than do private investment banking houses. (11) In the case of a trust company or a bank with a trust department, possession of a security affiliate may adverse ly affect the independence with which fiduciary activities are exercis ed. In actual practice operations of a number of security affiliates have affected the parent institutions to a greater or impairing the liquidity of the bank through lesser degree by the affiliate the first mentioned method of borrowing. Tenders of 8190,072,000 Received to 91day Treasury Bills Offered to Amount of $100,000,000 or Thereabouts—Bids Accepted 8101,332,000—Av erage Rate 3%. Tenders totaling $190,072,000 were received by the Treasury Department to the offering of $100,000,000 or thereabouts, of 91-day Treasury bills, detail s of which were given in our issue of Dec. 26, page 4262. The amount of bids accepted was $101,332,000. The highest bid was 99.550, equivalgnt to an interest rate of about 1.78% on an annual basis. The lowest bid accept ed was 99.077, equivalent to an interest rate of about 3.65% on an annual basis. Only part of the amount bid for at the latter price was accepted. The average price of bills to be issued is 99.178, or an average rate of about L %. The announce33 ment of the result of the offering was issued as follows on Dec. 28 by Acting Secretary of the Treas ury, Ogden L. Mills: Acting Secretary Mills announces that the tenders for $100,000,000, or thereabouts, for 91-day Treasury bills dated Dec. 30 1931, and maturing March 30 1932, which were offered on Dec. 23 were opened at the Federal Reserve banks on Dec. 28. The total amount applied for was $190,07 2,300. The highest bid made was 99.550, equivalent to an interest rate of about 1.78% on an annual basis. The lowest bid accepted was 99.077, equivalent to an interest rate of about 3.65% on an annual basis. Only part of the amount bid for at the latter price was accepted. The total amount of bids accepted was $101,332,000: The average price of the Treasur y bills to be Issued is 99.178, or an average rate on a bank discoun t basis of about 3 Ji %. Under-Secretary of Treasury Mills Declares Tax Program of Democrats Is Wholly Inadequate. In a statement issued on Dec. 29 Under -Secretary of the Treasury Ogden L. Mills commented upon the tax program of Democratic leaders, stating that its outstanding defect "is that it is wholly inadequate to meet the fiscal situation." Mr. Mills asserted that "it is not a question of taxing or not taxing the rich. The rich must in any event bear additional burdens. The question is whether the others in more moderate circumstances are to be asked to contribute their share based on their capacity to pay." Mr. Mills further 66 FINANCIAL CHRONICLE [VOL. 134. nt Hoover Proposes Anew Consolidation of said, "it may be disappointing to realize that there is so Preside matter ment Bureaus With View to Effecting the Govern of truth little profit in 'soaking the rich,' but the cannot and there, Economy in Federal Expenditure. is that the largo incomes are no longer Therefore be made to produce the needed revenue." UnderAt his weekly press conference on Dec. 29, President Secretary Mills' statement follows: indicated anew his desire to bring about the conHoover leaders c The morning papers of Dec. 29 report that the Democrati there of Government bureaus in order to curtail Federal on program solidati this Under have finally decided on their tax program. return no be to is There base. tax of the g income is to be no broadenin expenditures. The President's statement follows: inre to supplementary excise taxes along the lines of the 1924 act. The "The most constructive direction for economy in Federal expenditu and to creased taxes are to be confined to higher surtaxes on larger incomes beyond a rigid reduction of appropriations and the resolute opposition and to increased estate taxes. lies in the consolidation of Government bureaus inadequate new appropriations ded The outstanding defect in such a program is that it is wholly general reorganization of the Federal Government. I have recommen to meet the fiscal situation. tion in public addresses, reports and messages to Congress reorganiza this is It 0.000. The deficit for the fiscal year 1932 is estimated at $2,123,00 t the last 10 years. income taxes during throughou ve estimated that current collections from individual 'I particularly emphasized this necessity as the basis of constructi more little a which of 000, $300,000, not exceed the calendar year 1932 will second session of the Seventy-first Congress. to in the my message economy Of this estimated than half will be collected during the fiscal year 1932. referred to it in the message to the third session of that Congress If we should increase I again amount approximately $210,000.000 is from surtaxes. and hi my message to the present Congress I again traversed the subject. additional 000 $200,000, about surtaxes by 100% we would collect only of my recommendations have been carried out, tho most notable one amount would be con- Some during the calendar year 1932 and probably the being the consolidation of all veterans' activities into the Veterans' Adminless. siderably As a result General Hines reports that we are saving somewhere over $100,000, which istration. Even if we should triple the surtax rate on income from $10,000,000 to $15,000,000 a year in this service alone. l theoretica a from even would, would mean a 60% maximum rate, we "Outstanding amongst these reorganizations would be consolidation of all during the calendar standpoint, collect only an additional $120.000,000 on activities of the Government under an administrator of public be available during the constructi would amounts these of half Only year 1932. works to serve all the departments. Other cases are the consolidation of all 0,000. of $2,123.00 present fiscal year to lessen an estimated deficit marine activities into the Department of Commerce; the conso little profit in "soaking merchant ion activities of the Government, of the public It may be disappointing to realize that there is incomes are no solidation of the conservat large the that is matter the of the rich," but the truth health services, of educational activities and numerous other groups on the produce the needed revenue. to made be therefore, cannot, headed responsibility. Such action would single and longer there major purpose under fell from about 16,000 in same The number of incomes of $100.000 and over result in the elimination of many expensive agencies and overlap resulting subfurther a be nably unquestio will 1928 to about 6.200 in 1930. There In vrt great economies. These economies would run Into many millions. stantial reduction in the calendar year 1931. "In addition to the actual economy by concentrated administration and doubling surtax rates on all 1933, year fiscal the to come we When n of overlap, further great economies would be brought about eliminatio probably would 1931 incomes, incomes of $10,000 and over, effective on through the curtailment of the self-expanding capacity of scattered bureaus, estimated an meet to revenue not yield more than $280,000,000 additional be much better controlled if they were grouped to gether. It insignificant sum could be which could deficit of about $1,417,000,000, and but an would enable policies in connection with different Government activities taxes. estate in increases sweeping from realized be better developed and better directed. friends are ready to increase to No matter to what extent our Democratic "The subject is an old one, and now that economy absolutely must be any additional sums in to estate taxes, such taxes cannot be made to yield first order in government, it is an appropriate time for Congress the in the fiscal year 1933, the fiscal year 1932, or more than a limited amount it to conclusion. Such action would combring and up the question take the to would only apply for the very obvious reason that the new taxes hment of the present session of Congress." act. There would be a prise a major accomplis estates of those dying after the passage of the the from years three and "Herald Tribune" in its Washington New return, York a The year from that date in which to make the tax. on the President's statement said in part: bearing date of making the return in which to pay account best, at to collect, To put the matter bluntly, aside from the attempt Amplifies Statement. sothe on President taxes in comparatively small amounts by a drastic increase Governis to finance not only Amplifying his prepared statement, the President said that the called rich, what the Democratic loaders propose to continue this course. ment at present has 10 different agencies engaged in construction activities. this but next year's deficit through borrowing and of then, each "and said, arrest the steady increase "They are scattered over the entire country," he There is apparently to be no serious effort made to toward the attain- has headquarters in Washington, none of which can be eliminated unless all in the public debt during the next 18 months, or to work we placed the are placed under one head. We could make great savings if ment of a balanced budget in the near future. the people of the mechant marine activities under the Department of Commerce. I have This will not do. There is nothing so important to the consolidaly unimas the maintenance referred to that a great many times in messages, particular United States in this period of deep depression nt. It stands high tion into the department of the merchant fleet. paired of the credit of the United States Governme a past. It can only be The proposed public works administration, he said, would include because of the sound fiscal policies pursued in the principles in the future. number of services now in the Department of the Interior; for example, the Preserved by a like observance of sound financial the Doby a expenditures without Boulder Dam work, lighthouse construction, now performed Borrowing over $3,000,000,000 to meet current le. The issuance partment of Commerce; prison building, now done by the Department of vigorous effort to tap available tax sources is indefensib the War all of on depreciati in result Justice, and rivers and harbors improvement, now performed by of securities on any such scale must not only ding loss to investors, Department, The President said he did not propose to place actual outstanding Government securities, with a correspon proposed the be borne over many years. military construction, including forts and navy yards, in but in an unjustified increased interest cost to the rich. The rich must administration. The Army engineers who are now in charge of rivers and It is not a question of taxing or not taxing is whether others in harbors work would be transferred to the public works administration to question In any event bear additional burdens. The to contribute their share continue their supervision of the same activities, the President said. more moderate circumstances are to be asked other taxes imposed in the Speaker Garner's Comment, based on their capacity to pay, and whether resorted to during this emerpast without hatdship to any one are to be Garner, upon being told of the President's statement, said: Speaker reasons for ignored be to are gency, or whether readily available resources "You may say this: the Democrats are determined that the costs of mainthe fiscal needs of the Governcomwhich bear no relation to economic effects, or taining this Government shall come down. Mr. Hoover has had a ment. to determine what should be done about conto reduce the deficit mission at work for eight years before? acted he not has Why The Treasury has suggested a program intended ts. Government departmen in the public debt next year, solidations of the this fiscal year, to put an end to the increase he never intended to act until he heard that the Demoprogram that falls short of these The answer is that and to balance the budget in 1934. Any decided some time ago that they would reorganize the Congress in crats will require additional taxes them attain To e. inadequat is objectives Government departments to save the American taxpayers' money—regard. in the fiscal year 1933. amounting to approximately $900,000,000 of political considerations." less preto d endeavore have we In providing for this Increased revenue, would not entail hardship to any class pare a reasonable program which as spared those with large incomes, of taxpayers. We have by no means Treasury Department Holds Increased Taxes Affecting maximum normal and surtax rates applicable is indicated by the fact that the maxithe and 25%, Those of Moderate Means Are Not Excessive or over by are increased to those with incomes of $50,000 applicable to incomes in excess of $100,000 Burdensome. mum normal and surtax rates are almost doubled. Tile Treasury Department, on Dec. 24, in defending its those with moderate incomes that e undeniabl is it time At the same contribute small amounts to the support measures to provide additional revenue through increased have some capacity at least to of fairly be said that a man with an income of their government. Can it nt, taxation, called attention to the increase in rates applicable in taxes to the Federal Governme $5,000 cannot afford to pay $31.50 would that much as $1537 This is all to higher incomes, and declared that "with such increases" or one with an income of $10.000 as tax rates included in the Treas. Individual the under them of . . . "some assistance from people of moderate means in be demanded nry's program. the question to meeting the revenue need cannot be considered excessive of out entirely is it out, As has already been pointed like the total amount of additional or burdensome." In giving the Treasury's statement, made obtain from income taxes alone anytjing to impose certain excess taxes proper and wise was it If revenues needed. 25 said: that the present Democratic leaders orally, the "United States Daily" of Dec. in 1924, and I may say in passing It was the view expressed at the Department that the chief burden in the conceivable objection can there be thought it was wise and proper, what greater? proposed increases will fall upon the larger taxpayers and not upon incomes in such taxes to-day when our needs are far interfere with the flow of goods of $5,000 and less. The rates suggested are not so high as to them. enjoy that or buy those who Treasury calculations under the recommendations to Congress show and services, or to constitute a real burden on and radios and admissions to the Department expects to raise an additional $920,000,000 from its various Can any one seriously complain if cigarettes cost a trifle more; or if we proposed rate raises. Of this amount, it was asserted, only $27,000,000 places of amusements, even automobiles, are to checks and an additional cent will come from taxes on incomes of $5,000 or less. Additional information are to pay 2 cents for the privilege of using not intolerable burdens was made available by the Treasury as follows: on the transfer of a share of stock? These are meet the necessities of a particularly when we are asked to assume them to Nature of Program. real emergency. of the current discussions that certain features of involved In the some morality from appears doubtful It the being, the time for Passing over, s for capital losses, the Treasury's tax program are art generally understood. Reference is suggestion that we eliminate retroactively deduction taxation of capital gains and made particularly to the statement which has been made in some quarters after profiting largely for many years by the tax increases will rest primarily upon speculative profits from tax that the burden of the proposed the extremely doubtful principle of exempting to the hard-earned individuals of small means. This contention Is not well founded, and ation while sharply increasing the rates applicable the program. and salaried classes, indicates a limited understanding of the revenue income of doctors, lawyers and the professional the revenue for the fiscal all-Important issues The Treasury has recommended increasing statement of the Democratic leaders raises squarely the resomeans it An Indication of what a 000. whether $920,000, of decide must amount now before the people. The country year 1933 by the total to follow the treacherous portion of this total will be derived from increased income taxes on lutely to put its financial house In order,or,instead, small well led governments as , taking 1930 statistics of income and demoralizing course of borrowing which has Incomes of $5,000 and less can be gained by as Individuals to disaster. 1 JAN. 2 19321 FINANCIAL CHRONICLE 67 for purposes of illustration and applying the proposed new rates to income returned for that year. Such a calculation shows that out of a total increase of $222,000,000, taxpayers with incomes of $5,000 and less would contribute but $27,000,000. On the same basis those with incomes of $10,000 and more would contribute $182,000,000 of additi onal taxes. Of that additional amount those with incomes of $50,000 and over would pay an additional $155,000,000. The amount of the yield of the increased rates used for Illustration is higher than the total additi onal yield actually expected from 1931 to 1932 incomes, but the illustration goes to show the relative contributions. Will Bach Relief Bills. "The policy of the Democratic organiz ations has been to expedite as rapidly as possible the program of the Admini stration. Violent criticisms of the President and his policies have all come frotn the Republican side el the House. So far as I am concerned personally I do not propose to maks on the floor a single speech which might be called political until the reconstruction bills, intended to alleviate the present unparalleled depression in this country and in the world, have passed the lower House of Congress. "When that has been accomplished I expect to commence making speeches which are someti mes called Shrinkage in Large Incomes. political speeches, and I expect to charge up the necessity for unparalleled taxing burdens made It is entirely out of the question to obtain necessary at this session from the taxation of larger to the policies in force since the expiration of the Wilson Administrati Incomes anything approaching the total on. amount of additional revenue And, so far as I am able to control the matter, I shall endeavor to which is needed. This is clearly indicated prevent by the fact that the number of members of the Democratic side from making speeches which are someti reported incomes of $100,000 and over mes fell from about 16,000 in 1928 to called politic al until these reconstruction bills have passed the about 6,200 in 1930, and the report House. ed tax on such incomes fell from "Passage of the debt postponement bill and the Federa about $700,000,000 to less than l Farm Land Bank $240,000,000. This indication of the bill throug h the House was made possible only by the itiodification sharp reduction in the amount of income made available for taxation gives some in the bills by Democr Indication of the limit of the atic members of the House Ways and Means Comamount of tax which can be obtained from mittee in opposition to the wishes of the President. The this source. It is the very shrink debt postponeage in individual and corporate income ment bill, and in calling it this I am observing the wishes of the due to the depression which has President to a large extent brought about the need as expres sed to me by the President, contains clauses of which for additional revenue and the the Adminisshrinkage in the amount of income availa ble tration does not approve, but which are intended to make for tax cannot be made good by it impossible fox increasing the rates of tax. this Congress to grant further extension of them to The proposal of the Treasu our debtor nations and ry include drastic increase in the rates further reductions in the amounts they owe us. applicable to the higher incomes. Under the present law the maximum normal and surtax rates on income s of $48,000 is 17%; under the proposed Sees Real Fight in June. rates the maximum would be 22%. Under the present law the maximum "The real debt postponement fight will come rate on an income of $100,000 up in June of this year, is 24%; under the proposed law it will when an attempt is made by debtor nations to get a further postpo be 42%. At the present time income nement in excess of $100,000 is taxed at of the amounts due next year, and the present Congress will be in the maximum rate of 25%; under the session at proposed law the maximum rate that time and it will be impossible to commit members to any progr would be from 43% to 46%, or almost am of double. debt extension by sending them telegrams. "Administration measures in the future will Miscellaneous Taxes. receive that careful consideration of Democratic members of Congre With such increases in the rates applyi ss to which they are entitled, ng to higher incomes some assistbut the committees which will consid them ance from people of moderate means in er all have Democratic majorities, meeting the revenue need cannot be considered excessive or burdensome. and it is safe to predict that they will come Under the proposals a married man out of those committees with the restrictions and the modifications which with one dependent with an income of Democratic membership of the $5,000 would be called upon to pay committees will suggest. $31.50, and one with an income of $10,000, $153. Meeting the need for additional revenu e necessarily involves taxes in addition to the increased income taxes. Such additional taxes were employ ed Tax Revision Program of Hous during the war period and the early post-w e Democrats Calls for ar years, and obviously they are needed now. Repeal of Capital Gains Tax—Opposed to Incr eased Of the proposed additional miscellaneou s taxes, those on checks, on Rates on Incomes Under 0,000—Measure Expe telephone and telegraph messages, and the ctea increase on stock transfers in to Be Ready Feb. 1. general cannot be considered as burdening people of small means. It is difficult to see any just cause of compla The Democratic tax revision prog int as to moderate additional taxes ram was announced on on cigarettes and tobacco or why the sale of automobiles and accesso ries Dec. 28 by Representative Henry T. Ii not a proper subject for the payme Rainey, majority leader nt of a tax. Admissions to places of amusement can hardly be classed of the House, as providing principall as necessities or be deemed to be entitle y sharp increases in the d to exemption from furnishing some increa higher Income brackets, repeal of sed revenue. the capital gains and losses It is useless to look to increase in estate taxes for any consid erable help provision of the prese is the present emergency for the nt law, and a combined inheritance and. reason that increased taxes in this field do not actually produce results for from two to three years. The Treasury gift tax bearing a high rate. las suggested increasing the rates by returning to the 1921 From its Washington bureau, law which provides for a maximum rate of 25%. Dec. 28, the New York Representative Rainey Says Modification of Tax Bills Will Take Place Before Pass age—War Debt Postponement Issue to Come Up in June—Statement as to Other Administration Meas ures. Representative Rainey, Democratic floor leader of the House, in a statement issued on Dec. 25, as to Administration measures, had the following to say regarding the plans for increased taxation: "Herald Tribune" had the following to say regarding the Democratic proposals: The Democratic leader of the House, who spoke with the of the Ways and Means Commit authority tee, where the new revenue bill will originate, declared himself unalterably opposed to any increa sed tax rats on incomes below $5,000 a year, and to any sales tax whatever, whether on automobiles, radios "or other so-called luxuries," 117i/1 Be Made Retroactive, It is probable, the Democratic leaders said, that the entire will be made retroactive for tax programs the present year. Those sponso ring the program declared that unless the tax is made to apply to incomes this year it will be impossible to avoid a sales tax or bond issue, both of which "Before the tax bills are passed are in high there will be ameliorating modifi disfavor in the Democratic leader which Democratic commit cations ship. tees will insert. It will be John N. Garter , Speaker of the House the policy of the Democratic majority of the Ways , and Senator Pat Harrison, of and Means Committee to adopt those meth- Mississippi, ranking Democratic member of the Senate ods of taxation which will be least burdensome and which Finance Committee, will compel conferred in the Speaker's office to-day. They entrenched wealth to pay the remain ed together for a half share of carrying on this Government it hour, at the end of which time they announced ought to pay. that the joint Democratio Policy Committee would "It is impossible to gay at the be called to its second session present time what reductions immediately after will be made Congress reconvenes next week. in budget estimates, but it is safe to predict that every Speaker Garner said the Commi from the Appropriations bill reported out ttee would consider the Democratic Committee will carry less than party's the estimates. A position on taxes and tariff revision. He meeting of the Democratic expected the House Ways and Chairmen of every subcommittee Means Commi ttee priations Committee has been of the Approto begin hearings on the tax bill almost immedi held and they have all ately and agreed on this estimated that it would be ready for submission proposition." to the House late in January or early in February, dependent upon how long the hearings requir In a Washington dispa e. It is considered possible that tch, Dec. 25, the New York Democratic tax program will be the "Journal one which will win Congressional the of Commerce" also approv al. Many Republicans have joined reported Representative Rainey as the Democrats in opposing the limited sales tax and the increa follows: se in the lower income brackets proposed in the program submitted by Andrew W. "During the remainder of Mellon, Secretary of the Treasury, which this session," he explai also proposed making the tax ned, "I propose to keep the President's message before the House, and whenev increase retroactive. er, between the supply bills or other bills, there is an interval, I propose to go Oppose Rise on $5,000 Incomes. again into Committee of the Whole House on the State of the Union for Considerable Democratic opposition to the retent bill or some proposition must general debate. Some ion of the retroactive be used as a medium for O propose to keep the general debate, and provision is likely, but the leaders are confident the President's message before argument in favor of it in place of a sales tax or bond issue will the House always the medium." prevail. The Democrats hold as a majority in the House and expect the suppor t of the Senate's Republican Outltnes Plans in View. insurgents on the question of tax revision. The floor leader added that he did not expect that Democratic leaders re-emphasized that they were many of the speeches will even refer to the Presid determined to have the ent's message, but there must be time for entire additional tax burden carried by persons whose incomes are general debate, and this practi largest. ce will make it possible Income s below $5,000 are held to be less able to bear an added for committees bringing out bills to limit the burden. general debate on those measur es to the bills Whatever increase is imposed on those between $5,000 and $10,000 will themselves, and in this way the work of Congress will be Ire claimed. greatly expedited, be nominal, it was said, but from then on the increase will becom e more and more marked. "The passage of the debt postponement bill would not have Those in charge of the legislation said it was so early in the session possibl been e that possible in the higher if it had not been for the opportunity given members brackets, say from $30,000 up, the war-time rates would be restore in general debate to d. The discuss the proposed bill. I expect that in general war-time surtaxes ranged as high as 40% of an annual individual income debate on the President's In message every conceivable subject will be dis- addition to a flat charge and the normal income tax. The 1928 Republican cussed by the members of Congress, and they will all have revision program cut the maximum surtax ample opportunity to discuss in this way the to 20%, plua a flat charge propositions which are of interest in the districts and the normal tax. they represent, and this is the best way to bring these matters to the Passage Before March 15 Expect attention of the Congress and the country. ed. "In spite of newspaper The Treasury is working on tables showing how criticism from editors not much the Government parliamentary procedure, informed as to the reasonably this practice will be contin could be expected to realize through an increase entirely in the the session. ued until the end of upper bracke ts. These tables will be presented to the Ways and Means Committee. 68 FINANCIAL CHRONICLE [Vol.. 134. Major-General James G. Harbord, chief of the Radio Corp. of America, received $1,753; John D. Ryan, of Anaconda Copper Co., $6,013, and Cornelius Vanderbilt, $3,719. Refunds to Estates. The lists made public to-day also included refunds to the following estates: Florida. I New York. 86,876 Charles Deering, 2687,752 & 263,439 Louis Marshall Illinois. 14,362 j Federal Tax Refunds in 1931 Totaled $69,476,930 Com- Frank A. Munsey 678,449 Joseph Medill (Katherine M. MoPayne Whitney pared with $126,836,333 in 1930-Two Refunds of Fred M.Woolworth Cormick, legatee, $7,855; Mrs. 143,793 Eleanor Patterson), $7,855. 31,247 , Danston Refund John Estate st -Large 00 More Than 21,000,0 $26.800 59,957 Arthur B. Jones H. Rogers H. 50,687 Gets Keep Life Chauncy 232,454 olitan Willard Straight $751,190, to Deering Heirs-Metrop 368,998 William Nelson McClintock 45,314 William K. Vanderbilt 82,067 199,441 John A. Spoor $867,926. James Cox Brady Pennsylvania. 98,988 Amelia A. Eakins 343,702 81,623 Edward W.Bok Total tax refunds of $69,476,930 in the fiscal year ended James Shevlin 201,613 H. Buhl_--_ Frank 147,487 ManvMe_ Franklin Thomas Rhode Island. 9,085 June 30 1981 were reported to Congress on Dec. 28 by Secre- Kate Davis Pulitzer $186,752 R. Goelet Mary 19,211 Pyne Taylor sum Moses the that d Virginia. tary of the Treasury Mellon, who indicate 10,153 Mary I. Burden $168,747 95,588 Thomas Atkinson included all taxes illegally collected and returned, but he Mary Ann Fitzgerald 138,267 .1. L. Camp Connecticut. deducted are $129,963 Morton S. Plant did not list credits and abatements. The latter Grants to Insurance Companies. from taxes assessed but not yet paid. Refunds are actual Insurance companies receiving large refunds included the following: cash payments. The latest figure of tax refunds included Metropolitan Life Insurance Co. of New York, $867,926. g $17,311,569.99 in interest as against $126,836,333, includin Equitable Life Assurance Society of the United States, $276,505. the New York Life Insurance Co., $843,926. interest of $37,971,711, in 1930. Regarding the refunds, Travelers' Insurance Co. of Hartford, Conn., $216,871. said: "Times" York New the to 28, Dec. account, Washington Life Insurance Co. of Virginia, $320,245. of the refunds: • Secretary Mellon gave this classification Among merchandising establishments receiving refunds were the WoolInterest Amount Co. of New York, $637,961, and Marshall Field Ss Co. of Chicago, worth Included. Refunded. 514,437404.91 $34,506. .955.21 ,127 363 Income taxes 626,700.58 Representative Cochran, Chairman of the Committee of Expenditures in 5,086,902.33 Estate 65.02 1,668.24 s, issued a statement in which he called attenTobacco 18,308.60 the Executive Department 85,257.12 and collected by the Internal Capital stock 227,091.90 tion to the fact that additional taxes assessed 51 1,125,953. Sales 1,327.96 Revenue Bureau over and above amounts reported by taxpayers for collection 21,237.01 Spirits-narcotics 669.02 were not, under the law, reported by the Treasury Department. These over. 27,956.84 ° Miscellaneous largely offset the refunds. 67.99 assessments, which were not subject to publicity, 317,311,5 0.26 369,476,93 Total refunds tax income the 33, In 1930, when the total refunds were $126,836,3 . In 1929, with a Gift Tax Plan Held Menace to Capital-President of ° totaled $118,203,000 and estate tax refunds $6,586,000 were $165,363,000 and the total of $190,164,359, the income tax refunds Estate Planning Corporation Urges Concerted estate tax refunds $17,234,000. Effort to Prevent Readoption of Law of 1924required law the since With the refunds reported to-day, the total paid $230,812,483 in publicity of refunds in 1922 is $1,271,266,522, including Attacking the proposed re-enactment of the 1924 gift tax of capital which interest. refunds, as a serious menace to the normal flux The United Verde Copper Co., of Clarkdale, Ariz., received two $50,577 would, furthermore, yield compafatively small revenue to of other the and office, York New the to accredited $996,822 one of Clinton Davidson, referred to as an • to the offices at Clarkdale. These totaled $1,047,399. Line of Inde- the Government, , Refunds to the Prairie Oil & Gas Co. and the Prairie Pipe of inheritance and gift taxes, says subject on the y respectauthorit were, Wyo., Parco, of Co. pendence, Han., and the Prairie Oil & Gas . $2,348,158 of total made to prevent its adoption in a or be must $31,924, a concerted effort • ively, $531,740, $1,784,494 and The Illinois Central RR. of Chicago received $1,158,675. New York "Times" of Dec. 27, The y. emergenc the present were Refunds running into the hundreds of thousands of dollars mid: further g, foregoin the . authority for granted to estates, industries, insurance companies and individuals hinder the to the estate of Incorporation of the tax into the national fiscal system would • The largest estate tax refund, $751,191, was paid features in in Chicago. development of living trusts and insurance trusts as significant Charles Deering, once a manufacturer of harvester machinery tend with $678,449. the economic system of the country, Mr. Davidson says, and would The Payne Whitney estate, in New York, was next to his to halt the normal human inclination of an aging father to pass on Old Cases Previously-Settled. business and his estate in "his in 1922, and in maturing sons the responsibilities of his The law requiring publicity of tax refunds was passed lifetime. single any highest total for says that that year the total was about $49,600,000. The Mr. Davidson, who is President of the Estate Planning Corp., 7, paid in 1929. estates year was $190,164,359, including interest of $40,905,05 tax as it existed in 1924 were revived it is possible that gift the if should Treasury the that provided that there The law from 1922 to 1927 inclusive be taxed as much as 60%. He does not, however, deny would $500. of excess in those only 1928 report all refunds, but since taxes. large part to the is need now for a general increase in The sharp drop in the refunds for 1931 was due in Trouble in Tax. a clean.up of Much conducted Sees 1980 and 1929 1928, in Treasury the fact that of tax will produce World War years "Analytical thinkers," he says, "believe this form pending tax cases, many of which dated back to the profits taxes were in effect. less revenue and cause more trouble than any form ever considered in this • and those immediately following, when the excess made in 1929 and country. A certain group of legislators claims that wealthy people are able The result of this campaign was to swell the refunds away their property of by 1931. to avoid the Federal estate tax at death by giving • 1930, and most of the old cases were disposed during life. Mellon and Lamont on List. it was pushing the "Strange to say, however, this same group, when Andrew W. Mellon, Two Cabinet officers were in the list for 1931, part of the Federal revenues system, permanent a as tax estate Federal SecreLamont, P. and Robert Secretary of the Treasury, receiving $86,938, the socially desirable result of forcing the break-up Mellon, brother of ° Secretary Mellon, stated it would have at death. tary of Commerce, $10,964. R. B. of large fortunes either by gifts during life or taxation and are got $14,729. "Now, apparently, they have forgotten this great social purpose leader, floor Democratic the Arkansas, of gift tax which they hope will prevent Two Senators, Mr. Robinson respectively, $671 recommending the enactment of a received, Jersey, New of revenue the increase Republican and Mr. Kean, the gifts they previously wished to encourage and will originally urged for another purpose than the mere law a and $806. from derived got relatively year, refunds last • The Rockefellers, who received large of revenue." , $31,324, and John D. Rockefeller, production show the small ones in 1931, John D. Rockefeller The following table has been prepared by Mr. Davidson to New York was in the list for $4,686, gifts to one Jr., $1,804. Bernard H. Baruch of amount of taxation levied under the 1924 gift tax law on $1,698. for Germany, to r Ambassado and James W. Gerard, former the list, John Jacob Astor receiving person: $ 961,000 None I 55,050,000 The Astor family was again on $50,000 2,561,000 76,000 10,050,000 0 $10,365, and Waldorf Astor 28,654. 4,561,000 Motors Corp., received a 81,050.00 General 15,050,000 the 241,000 of President Jr., 2,050,000 Alfred P. Sloan, $5,078. A. Vanderbilt Frank and Trusts. $15,112, Living of e of Importanc refund personal brother of the late Senator Boles appreciated," Spencer Penrose, of Colorado Springs, "The importance of living trusts in this country may be of $90,371 and $10,584, and Penrose of Pennsylvania, received refunds Philadelphia political leader, Mr. Davidson says, "when it is realized that the volume of business of the Vare, S. about $1,000,000,000 former Representative William trust companies in just this one field amounts to stabilizing influence in a as received $14,784. desirable highly are trusts Living annually. a tax was Only One Film Star Listed. growing more so. Yet under the 1924 law star on the Los Angeles this country and are such trusts at the very time they were created, Douglas Fairbanks was the only motion picture of principal the on assessed got operator, of Oklahoma, was more than $50,000 and list, receiving $12,391. Joshua S. Cosden, oil provided the amount transferred to the trust received $7,292. to take the $56,198. Mrs. Dorothy P. B. Caruso of New York maker of the trust did not retain the right the provided actresses, picture moving Helen Sherman and Dolores Costello Barry, back at his discretion." property got player, polo in forcing noted result e, would, furthermor received $1,345 each. Thomas Hitchcock, the The enactment of a gift tax of 2646 and taxes, according to Mr. Davidson. He refers double $4,780; Paulino Uzcudun, the boxer, benifited to the extent pay to estates many in which securities received by an heir were exTullio Semiin of the Metropolitan Opera is $1,708 ahead. re- specifically to a case extent that it became no longer possible to Dr. Henry A. van Dyke and Dean Mathey of Princeton received, changed for others to the old ones spectively, $1,466 and $3,303. exactly which new securities had replaced which distinguish the on down was The American League Baseball Club of New York following which the heir made a gift. a man received certain securities on list for $10,858. "For example," he says, "if got a had been paid and during the following Earl D. Babst, of the American Sugar Refining Co., New York, which the Federal estate-tax law $28,610. the securities for other securities-then if he made a personal refund of sales five years exchanged The Engineers' Club, of 82 West 40th Street, New York City, got a have to pay the tax again. not would he gift the Little and purchases so that it was tax refund of $92,380, the Longacre Theatre one of $3,687, and • "But if he had made exchanges, sales Theatre one of $3,263. longer possible to say exactly what securities took the place of those no York New Street, 8th of 17 West hostess, would lose his credit and the gift Texas Guinan, night club on which the tax had been paid he must be avoided. We are now 'City, received a refund of $2,469. tax would be imposed. Such restrictions for $43,495. list the refund on was York, New Corp., Theatre The Fox President Hoover has asked Congress to complete consideration of a new tax program before March 16, when the returns on 1931 incomes are made. Speaker Garner said every effort would be made to expedite the legislation, but he held that, if the bill were not passed and signed by the President by that date, Congress could enforce the retroactive feature by passing a resolution fixing a date when the law should begin to apply. JAN. 2 1932.] FINANCIAL CHRONICLE 69 realizing that the restrictions caused by the capital gain provision of the income-tax law are bad and that they will probably be done away Ron. Louis Dec. 22 1931. T. McFadden, Rouse of Rreprese with eventually. We must not make another such ntatioes. mistake." My Dear Mr. Congressman: —Acknowledgment is made of the receipt of your letter of the 21st inst. inquiring how Dangers for Estates. the Post Office Depart deal with postal matters arising Mr. Davidson also speaks of dangers involve in the Fifteenth Pennsylvania ment will d in the gift tax as it which you represent in the present District, applies to the handling down of estates and Congress. responsibilities from father Apparently you are under a misappr to son in the life of the father. He says: ehension with respect to the of Congressmen to postal adminis relation tration. Legally, Represe "In many large privately owned industries, ntatives in as the owner grows older Congress have no responsibility or voice in the selection of personn he wishes to turn the business over to his el in the son. His primary purpose post office or other executive departments. Is not to avoid the Federal estate tax but to Because most of the Post Office free himself from the cares Department's major activities are in the field, frequently remote from of the business and to train his son in the post of duty of departmental heads, it has the responsibilities which will been the practice of the eventually be his. ment to invite the advice in matters departrelating to local personnel, "I know of one instance where the business and in limwas worth over $15,000,000 ited cases relating to local policies, of Congressmen in and where the father, in order to hold whose capacity and his sons away from anxious desire to be of service the department has confidence. Both competitors, was obliged to turn over a substantial part of his interest and Democratic administrations have followed this practic Republican e for many to them. With a heavy gift tax this would have been virtually impossible. decades with undoubted benefits accruing to the service. Under the tax, if the father gave As the views which you express his son the whole $15,000,000, the ed in the House of Representatives gift tax alone would amount to on $4,561,000—which is easily seen to the 15th inst. as set forth on pages 559 and 560 of the "Congressional be prohibitive. ord," volume 75, convince me that your advice will not be helpful Recto the "Carrying this further, let us depart ment, the heads of the several post office bureaus suppose the son Invests and reinvest have been directed s from and after the date mention the retnaninder of the $15,000,000, ed neither to invite nor to follow suggest as often happens, so that the original ions from you. gift can no longer be identified, and then dies within five years. His estate would have to pay another Very truly yours, $4,561,000—making a total of $9,122, 000 in gift and inheritance WALTER F. BROWN. taxes, or about 60% of the total, gone to the government in less than five Mr. McFadden's letter to the Postmaster-Gener years. al follows: "When the gift-tax law of 1924 By the press I am informed that the was adopted, the framers apparently two Senators from Pennsylvania Ignored the existence of the income tax. The result was that there were have arranged with you in regard to all matters pertaining to postal affairs numerous inconsistencies, cases of double taxation and conflicts which from this date on in the Fifteenth Congressional District of Pennsylvania; caused endless litigation and expense to the taxpayers and the government." that they will in the future be handled with your concurrence by Senator s That the 1924 law would be inadequate and inconsistent if it were re- David Aileen Reed and James J. Davis, and that so far as this particular enacted at the present time is shown in the instance of the insurance district is concerned in matters pertaining to your department the Congressman will have no opportunity to trusts, Mr. Davidson says. He points out that confer with you, nor to make recommendain 1924 these were comparations for the appointments under tively small and inconsequential, and were civil service regulations of postmasters left out of the law, but that or rural carriers. now they have reached a total of more than $4,000,000 and are conAs I have pending before me tinuing to grow. now several appointments of postmasters and other postal department matters "All things considered," Mr. Davidson conclud , I am asking you for definite informaes, "It would seem that tion and immedi ate the paltry and doubtful benefits of a gift tax would be vastly outweighed partment relative advice as to the future conduct of the Post Office Deto postal matters in the Fifteenth Congressional District by its disadvantages to business, to the government and to society, and of which I am . the elected Representative in Congress. I am its enactment should be discouraged." asking you this in order that I may advice my constit uents properly. 'Your immediate reply will be expected. Senator Borah Advocates 10% Cut in Federal Salaries— Senator Jones Opposes Cutting of Salaries of Says Taxes Alone Will Not Balance Budget. Government Workers, A 10% reduction of Federal salaries above $2,000 or Chairman Jones of the Senate Appropriations Commi $2,500 was recommended by Senator Borah on Doc. 23 to ttee promised on Dec. 24 to do "everything possib help reduce Government expenditures. A dispatch Dec. consis le" tent 23 with efficiency to reduce Federal expend itures, but opposed to the New York "Times" in reporting this added: cuttin g the salaries of Government workers. Associated Members of Congress and all other Government employ ees would be Press advice affected except Federal Judges and, it is stated, the Preside s from Washington Dec. 24 further said: nt. Some years ago, after the Supreme Court held that income taxes cannot be levied on salaries of the Federal judiciary, the Treasur that the President's salary of $75,000 is exempt. A Federal y also ruled Judge's salary cannot be changed while he is in office. While Mr. Borah did not say he will introduce an amendm ent to the new revenue bill, he is prepared to do his utmost to support such a plan. When Congress a few years ago raised the salary of each member from $7,500 to $10,000, Mr. Borah and Representative Tucker of Virginia refused to accept the increase on the ground that they had no moral right to raise their own salaries while in office. It is understood that both have been accepting the full $10,000 since they were re-elected to Congress. Mr. Borah had no figures on how much of a saving the proposal would effect. It is believed that the movement will not be very popular in Congress; similar proposals in this direction have been coldly received. "We are not going to balance the budget by taxatio n alone," Mr. Borah said. "The most important thing before us is to balance the budget and we cannot do it unless we make drastic cuts in Federal expenditures. It is all nonsense to say we can't make such drastic cuts. "I favor beginning on Federal salaries and cutting We can make them. all those above $2,000 or $2,500 by at least 10%. I believe this can be done without injustice, inasmuch as the purchasing power of the dollar in recent mouths has increased more than 10%." Senator Harrison, Democratic member of the Finance Committee, has proposed that the Senate go on record as favoring a $300,000,000 cut in the $3,942,754,000 budget for the fiscal year 1933. Senator Jones plans to co-operate with Chairman Byrne, of the Democratic House Appropriation Committee, to cut expenditures. He said. however, Federal salaries "are an almost infinitesimal part of Government expenses." He added he was not inclined to approve the suggestion of Senator Borah that they be cut. Federal Homes Loan Discount Bank Favor ed by New York State Association of Real Estate Boar ds— Resolutions of Endorsement of President Hoove r's Proposal. Endorsement of President Hoover's plan to home building and real estate has been given encourage by the New York State Association of Real Estate Board s. Richard T. Childs, President of the Association, report s that resolutions of endorsement have been sent to all Congr essmen from New York State soliciting their support in the passage of the Federal Home-Loan Discount Bank Act. Summarizing some of the prospective benefi ts of the home-loan bank, the Association, accord ing to the New York "Times" of Dec. 27, calls attention to the following: 1. The conversion of good but long-ti me credits with their unwieldy units as to time and denomination into stabiliz ed and standardized forms of security with consequent liquidity and marketa bility. 2. An advanced step in a plan to make funds continu ously available in any locality where housing need exists irrespec tive of local financial conditions. 3. A great step in stabilization of government by assistin Elimination of needless Federal employ g the majorees as well as a wage cut is advo- ity of our people to become satisfied home owners, thus making more secure cated by Senator Harrison (Dem., Miss.) as a step necessary to balance the our economic foundation. Federal budget. 4. The establishment of the Home-Loan Discount Bank Mr. Harrison explained the motives behind acknowledges this pending resolution the home-building industry as ranking financially near the top of proposing that the budget be cut $300,000,000 the leading industries of the country. more. The Senator did not indicate to what extent employees' salaries should 5. The inducement to private initiative and private capital to lend be reduced. itself to home construction work, providing a revival of construction with attendant increase of employment. 6. Providing safe forms of investment for funds of Representative McFadden Barred from Patronage Right as postal savings banks, trust funds, &c., which funds such institutions have not heretofore by Post Office Department. been available for investment in real estate securities. 7. Opening up to the small investor a new field for Following the charges by Representative McFadden of saving in one of the safest investments ever devised by amn. Pennsylvania in Senator Harrison Also Holds Federal Wage Cut Necessary to Balance Budget. From its Washington bureau the "Wall Street Journal" of Dec. 24 reported the following: the House of Representatives on Dec. 15 (referred to in our issue of Dec.26, page 4259), that President Hoover had acted as an "agent" of the German Government in his proposal for the postponement of inter-Government debts,Postmaster-General Brown has advised Mr. McFadden that "the heads of the several Post Office Bureaus have been directed . . . neither to invite nor to follow suggestions from you." Postmaster-General Brown's advices to this effect were contained in the following letter to Representative McFadden: Explains Benefits of System. "The localized aspect of mortgage investm ents, the large amount money involved in such an investment and of the lack of liquidity have been objections raised by people with money to invest, " explains Mr. Childs. "The Home-Loan Discount Bank will largely overcome this condition. The bonds of such a bank would be an attractive investment to the small investor who would be encouraged to put his money in this form of liquid security, where he now dreads the thought of having it locked up in a non-liquid mortgage investment. "In the relative large bond issues of the Home-Loan Discou nt banks, the law of averages will have full scope and effect. The investor, instead of buying a mortgage on one man's house, would, with the same money, by purchasing a home-loan bond, secure a first-mortgage interest in the houses of perhaps a thousand men. 70 FINANCIAL CHRONICLE "The system will be somewhat analogous to the Federal Reserve System, on which has been of untold value to those engaged In other businesses certain account of the facilities for discounting commercial paper. While well-known types of commercial paper are accepted for discount, absoReserve lutely no mortgage paper is discountable through the Federal System. "Each discount bank will have the power to issue and sell bonds secured The by the mortgages which have been discounted through the system. may Act provides that these obligations shall be lawful Investments, and investthe be accepted as security for all fiduciary, trust and public funds ment or deposit of which is regulated by the United States. It also provides that the obligations and the interest thereon shall be tax exempt. Richmond (Va.) Division of National Credit Corporation Loans $1,100,000 as 11 Banks in North Carolina Close. United Press advices as follows from Raleigh, N. C., Dec. 31 are taken from the New York "World-Telegram": Va., division, The National Credit Corporation, through its Richmond. Carolina, as 11 turned 31.100,000 Into the banking structure of North with deposits banks, including 10 State and one National institution, totalling $3,447,569.30, failed to open. Trust Co. at GreensThe asets were sent to the North Carolina Bank & Bank & Trust Co., boro, checking a run on that Institution after the United Director of the also of Greensboro, had closed. John W. Miller Jr., that $3,000,000 National Credit Corporation at Richmond, declared situation. more was available, if necessary, to meet the Senate Committee Acts Favorably on Resolution to Distribute for Relief Wheat Holdings of Grain Stabilization Corporation. The Senate Committee on Agriculture and Forestry favorably reported on Dec. 21 a resolution (S. J. Res. 60) to make 40,000,000 bushels of wheat held by the Grain Stabilization Corporation available to the American National fled Cross to be used for relief purposes. The "United States Daily" said: The distribution hi to be without cost to the Federal Government and through other agencies than the Red Cross If the President so decides. The report was made jointly by Senators Capper (Rep.) of Kansas and Wheeler (Dem.) of Montana. but an effort by Senator Capper to have the resolution considered immediately was blocked by Senator King (Dem.) of Utah. The resolution, therefor, was placed on the Senate calendar to await Its turn. Following the Committee's decision to report favorably on the measure, Senator Capper stated orally that no provision was made to reimburse the revolving fund of the Federal Farm Board, which directs the activities of the Corporation and which has made heavy loans on the wheat. A credit will be granted to the revolving fund on the books for the cost of the wheat used, however, he said [Vol,. 134. Moratorium Sought for Realty Owners—New York Legislature Will Be Asked to Suspend Some Clauses of Dwelling Act. A one-year suspension of the reconstruction features of the multiple dwelling law affecting existing buildings of all types included within the scope of the law will be asked by the Real Estate Board of Now York, which is heading a movement to obtain the necessary legislation. In indicating this, the New York "Times" of Dec. 28 added: Announcement of the proposed moratorium yesterday said the plan had the backing of Tenement House Commissioner Deegan. The Real Estate Board is inviting a number of civic and business organizations to participate in a conference on Jan. 8. at which time the terms of the proposed bill will be discussed. The purpose of the moratorium is to afford relief to the many property owners who have been hit by the depreciation in real estate values and who would almost certainly face foreclosure if forced to comply with all the provisions of the dwelling law. Commissioner Deegan has invited the conferees to meet in the Mayor's room for the reception of distinguished guests in the Municipal Building. The Real Estate Board s statement on the features of the proposed bill In part follows: "The bill under consideration would grant the year's extension to all types of multiple dwelling property from the old law tenement to the steel constructed apartment house. It would include, of course, the converted dwelling and the large apartment hotel which latter, under the law, was required to make certain alterations that had to do chiefly with the dimensions and construction of kitchen pantries. The features of the law applying to now construction would remain in force, but as real estate Interests as view the situation, that will cause little hardship during the depression there Is little likelihood of any extensive resumption of apartment house building activities during the next 12 months or more. "With increasing vacancies due to the existing surplus of dwelling space owners of conand increased overhead. tracable chiefly to mounting taxes, properties verted dwellings, old law tenements and other multiple dwelling to the prohave been placed in a highly distressing situation, according added exponents of the moratorium plan. To force them to assume the time pense of the alterations required by the multiple dwelling law at this would wipe out their tenuous equities. the old law "The initial proposal for the 12 months grace came from several discussions Tenement Committee of the Real Estate Board. After ComHouse Tenement with of the idea the Committee held a conference Commissioner missioner Deegan in his office on Dec. 21 and found the that keenly alive to the dilemma of the property owner. He admitted financially Information had reached him that many owners had found it adding law, the of impossible to comply with the reconstruction provisions especially true of that it was his impression that this state of affairs was multiple dwelling private dwellings and two-family houses converted for Brooklyn and the purposes, particularly in the Boroughs of Queens, Bronx. Ask New Lien Laws to Aid Home Owner—Realty Interests Before Legislative Committee Urge a Cut in Costs of Foreclosure and in Charges of Referees —Assemblyman Stevens Pledges Action. Argentine Rural Society Asks Short Sales Curb— costs of foreclosures on small mortgages were Grain Heavy Country's in ns Operatio Curtail Would realty interests and mortgage experts as one of by scored Markets. to home financing and home ownership drawbacks chief the we quote of 28 Dec. Journal" Street From the "Wall 18 before the Joint Legislative ComDec. on hearing a at the following from Buenos Aires: the Lien Laws in the Bar Association of Revision on Ministry the to ion mittee a recommendat The Argentine Rural Society has made of Agriculture to curtail short selling in the important grain futures markets Building in New York, according to the New York "Times," of Argentina. went on to say: that whenever new-crop grains are sold In the which The Society recommends seller futures market below the officially estimated cost of production, that most prove actual possession of the grain. It is further suggested of when deliveries exceed 1.000 tons they should be made in five quotas have would Society the 20% each, at Intervals of five days In addition, on grain of the storage for reserved space 33% of all railway warehouse that account of the actual producer, and upon this basis It recommends interest. $26,000,000 be allocated for warrant loans on grain at 6% Uruguay to Aid Farmers—Government Will Purchase 366,700 Bushels of Wheat at 60 Cents. Now Under date of Dec. 29 Montevideo advices to the York "Times" stated: l the governmenta The National Administrative Council has authorized bushels) of wheat from the Purchase of 10,000 metric tons [about 366.700 exchange to current at new harvest at 5 pesos a hundred kilos, equivalent 60 cents a bushel farmer. The measure Is Only 367 bushels will be purchased from each in price which usually designed to protect the farmers against the decline provide some ready follows the first heavy shipments to market and also to cash for them. kilos, The Bank of the Republic is authorized to lend 4 pesos a hundred security. and the Government will deposit the wheat with the bank as pesos 4 be will The Council estimates the average price during the season Gova hundred kilos and has authorized the official seed bureau to sell the ernment holdings whenever it believes this advisable. It is estimated this assistance to the farmers will cost the Treasury . about $50.000, which is ordered to be charged to general expenditures Germany Gets Soviet Rye—Russia to Pay for Imports with More Than 100,000 Tons. An item from Berlin Dec. 23 is taken as follows from the New York "Times": Negotiations for the importation by Germany of 100,000 to 200.000 tons of Russian rye are said to be virtually concluded and await only the approval of the Governments,according to reports on the Produce Exchange. It Is said no new credits to Russia are involved in these transactions, which are intended to facilitate Russia's paying for German products. Russia has insufficient foreign exchange and must pay with exports. Iler exports to Germany this year were much below last year's. Representatives of contractors' organizations asked the committee's aid camps, In remedying "deplorable living conditions" in some highway labor and hospital associations requested changes In the law to give them better protection against losses on accident cases. After the hearing Assemblyman D. Mallory Stevens, Chairman of the Lien Law Revision Committee, said that his committee would make a tentative draft of amendments of the law and hold hearings on it here and in Albany before its presentation in the next Legislature. He said the amendments would include measures to lower the charges of referees and other costs In small foreclosures, and to protect hospitals in compensated accident cases. The foreclosure situation In respect to loans under $10,000 amounts almost to a "racket" In New York City, and the high cost of foreclosures is doing injury to small dwelling owners, according to Frank Bailey, Chairman of the board of the Prudence company, who told the committee that court action to protect small loans sometimes Involved an expense of 28% of the value of a mortgage. "Lenders are wary of mortgages under S4,000," Mr. Bailey said,"because they must expect to spend about $600 In case of foreclosure. During the long delay accompanying foreclosures the borrower sometimes allows his house to deteriorate or even damages it." Edward A. MacDougall, l'resident of the Queensborough corporation. said that Government aid might become necessary to provide proper housing now supplied by private interests unless some revisions were made In the representing law to help the small home owner. Pierrepont Davenport, lowerthe Brooklyn Real Estate Board, suggested that costs be reduced by the length reducing ing the charges of referees, lawyers and auctioneers and description of property descriptions required and the number of times the must be published. of President Similar recommendations were made by George L. Bliss, the New York League of Savings and Loan Associations. highway chapter of Harry Ti. Hayes, representing the New York State stops be taken the Associated General Contractors of America. asked that charged that In for proper regulation of labor camps on road jobs. He remained for money many camps the cost of living was so high that little food was being the workers at the end of the week, and that improper jobs and made a served. He intimated that liquor was provided on some part of the regular commissary charges. losses running cited es At the afternoon session hospital representativ institutions In this into "millions of dollars" during the past three years for State as a result of accident cases. Association, Joshua S. ChinItz, attorney for the New York State Hospital to permit liens was among those who urged the enactment of legislation In favor of hospitals In compensated accident cases. JAN. 2 1932.] FINANCIAL CHRONICLE Allen E. Beals Sees Way Cleared for New Building— Calls 1931 a Year of House Cleaning in Construction Industry—Lien Law Changes, Credit Adjustments and New Code Called Salient Features. Although builders watch the passing of 1931 with a sigh of relief, it was not the worst year in point of construction activity, according to Allen E. Beals, who says in a Dow Service report that 1918 was the zero year for buildin in g this city. The foregoing is from the Now York "Times " of Dec. 28, which further quoted the Dow Service as follows: At that time 6.322 permits were granted in the five boroughs for projects having an official total value of $39.210.756. This year will record about 19.600 applications for permits for new building representing an investment of about $343,000,000. the Dow Service writer estimates. Construction totals in New York City in other years were as follows: $80,593,938 in 1917; in 1920 a total of $221,265,897, and in 1909 an aggregate of $254,061,035. "The reasons for 1931's reaction are many, but oven if the years 1930 and 1931 had been free from National and international economic disturbances the extent to which necessary house cleaning in almost every trade has been indulged in would have made a good year bad." writes Mr.Beals. "Within that stretch of time the multiple dwellings law has had its day in court, leaving $70,000,000 worth of apartment house projects on the shelves of architects and builders, although (because of a special statute) these projects will be officially considere alive until July 1 1935. It is a d foregone conclusion, however, that in the light of what is to come, these projects certainly will not be deferred all that time. "The lien law amendments became effective with still tighter additional amendments expected to come out of the Legislature before it adjourns next year. "The general tightening of building trade credit practices by the Credit Association of the Building Trades of New York stands forth as the building Trade's best guarantee that when building prosperit y does return to New York City, and vicinity, it will come back with far less financial grief than that which rode loon the crest of the last and other big building tides. 71 District of Columbia, increased their total assets. New Jersey, with a gain of $60,438,950, showed the greatest Increase. Increase in Failures. Supervisors for the several States reported 190 failures of building and loan associations in 1930, as compared with 159 the previous year. The probable loss to the shareholders is estimated at $24,676.059, which is the largest loss ever reported in a single year and probably exceeds the total loss to building and loan association shareholders during the last threequarters of a century of their existence. The total loss for the preceding 10 years is placed at only $5,555,935. "Losses from failures by building and loan associations have been exceedingly small," the report says. "The unusual and excessive amount shown during 1930 is attributable mainly to the peculatio n of a few crooks who unfortunately got into the building and loan business. Over onehalf of it is chargeable to the dishonest practices of one man, George M. Beesemyer, a former banker, who looted the Guaranty Building .Ss Loan Association of Hollywood, Calif., and affiliated companie s, and who Is now serving time In the California State Prison." Building and loan conditions in the various States, which were requested from State league secretaries on or about July 1 1931, Indicate that the receipts of the associations have been reduced to some extent, but that the loan demand also has been greatly lessened, the report explains. Good Applications Scarce. Good applications were reported as being scarce and a larger margin in the value of the security offered was being more generally required. There was not much new building and not much buying or selling of property, requiring mortgage funds, but there was a greater demand for loans for refinancing and remodeling. Only three States reported at that time that virtually no new loans were being made. "The withdrawal situation is probably the most troublesome one with which the associations in some localities have had to contend." the report continues. "While unemployment has undoubtedly required many building and loan members to draw more heavily upon their savings, which has Increased the ordinary withdrawal demand, yet a considera ble portion has been due to uneasiness and idle rumor, which has caused withdrawals of moneys which were not required for actual needs. Bank failures in many sections have been responsible for heavy withdrawa ls, as was particularly the case In Arkansas, where 140 banks were closed following the collapse New Code Cuts Costs. of the largest bank in that State." "Crowning all these adjustments that have helped to make up the The report emphasizes the fact that the problem tax has become threatenhouse-cleaning campaign In the building trade, there has been general be- ing to home owners in this country. The varying conditions in many lief that the now building code would open the way for still further cuts States prevent any general conclusions, the report explains, but every In construction costs. The code revision is now finished and awaits ap- State league was asked to give the matter of taxation on the small home a proval by the Aldermen and Mayor. large place in next year's activities. "Since real estate men welcomed the building holiday, the wonder is that 1931 does not close with the distinction of having been New York's zero construction year,Instead of 1918. Robert L. O'Brien Named As Chairman of United States "As far as big building is concerned, as a matter of fact, that distinctio n has been earned. The best illustration of that fact comes from Tariff Board Succeeding Henry P. Fletcher Rethe Structural Steel Board of Trade, where a careful record is kept of the tonnage signed—I, M. Ornburn Named to Succeed Late of steel contracts that Is let for building construction purposes only in the Alfred P. Dennis on Commission. metropolitan district of New York. November a total was only 6,278 tons—the lowest over recorded in the history of the board—a Preside nt Hoover announced on Nov. 24 that he had chosen nd barely one-quarter of this volume was for buildings in Now York City. The Robert Lincoln remainder was for use in the metropolitan suburbs. O'Brien of Boston as Chairman of the United "Since a monthly tonnage of 50.000 is necessary in order to keep the States Tariff Commission to take the place of Henry P. other trades reasonably employed, and as from three to five months usually Fletcher, whose resignation, effective Nov. 30, was noted in elapse between steel closings and the time when booked tonnage begins to have an effect upon other trades, spring looks like the nearest starting time our issue of Nov. 21, page 3305. In making the announcefor this type of construction work. ment at his regular weekly press conference, the President "The main activity of the year has been In small house construction In the boroughs of Queens. Bronx and Brooklyn added Mr. O'Brien had been an active Republican for more , and there is to be a great deal more of it to come. than 30 years. According to the "United States Daily," the White House, on Nov. 24, made public a biographical sketch Wage Adjustments Expected. "It is evident that big building has been waiting for something favorable of Mr. O'Brien as follows: to happen. Big building, it should be said, still looks for wage scale adRobert Lincoln O'Brien was born in Abington, Mass., justments and lower cost of construction money Sept. 14 1866. He to approximate the 17% was graduated from Harvard in the class of 1891, and has received contribution that materials and supplies have made to lower building cost. honorary degrees of doctor of letter from Dartmouth, Brown, "Code revision is another item. The revival Colby and Boston Unt of the 1932 building season versities. is one more. General improvement in lie served as personal stenographer to Grover Cleveland business, making necessary more from office and consequent habitation space is a fifth. The opening of the the time of his nomination in 1892 until 1895. From that year until 1906 Eighth Avenue subway is a sixth. The expiration of the 1921 ton-year he was the Washington correspondent of the Boston "Evening Transcript." tax exemption law, seventh. For the next four and a half years he was the editor of that newspaper. "Most of those expectations are due for realization within the next four In November 1910 he became the President and director of the Boston months. Publishing Co., which publishes the morning and Sunday Boston "Herald" "Prompt building code acceptance is looked for. and the Boston "Evening Traveler." He served as editor of the "Herald" "The 1932 building season opens March 15. from that date until Dec. 131 1928. He has long been a member of the "The present building trades wage scale expires advisory board of the Pulitzer School of Journalism. Its Is a director of April 30 1932. "The Eighth Avenue subway is due to open Dedham National Bank and the Dedham Mutual Fire Insurance Co. He is April "The ten-year tax exemption ordinance expires 1. on March 31 and the a member of the Massachusetts Historical Society and an honorary member 18th semi-annual renting season since new building began to decline by of the l'hi Beta Kappa. His bonze Is in Dedham, Maas. volume and the 12th since it began to slump off in •aluo will come with the first of May. Ira M. Ornburn of New Haven, head of the International Cigarmakers' Union of America, was nominated on Dec. 19 by President Hoover for the last vacancy on the Tariff Commission. Mr. Ornburn succeeds Alfred P. Dennis, who died last summer. A dispatch from Washington Dec. 19 to the New York "Times" said: United States Building & Loan League Reports Decline in Building Loans—Smaller Receipts and Fewer Applications Shown in July 1 Report to League— Total Assets in Nation at End of 1930 Given as Mr. Ornburn is about 56 years old, married and has one son. $8,824,119,150—$7,760,163,958 on Mortgage. Ile began work as a cigarmaker, later was elected a local officer of the cigarmakers' Building and loan associations at the end of 1930 union had Labor.and then became President of the Connecticut State Federation of nearly 88,000,000,000 lent on first mortgage security on He has been a delegate to the American Federatio n of Labor convenreal estate in the United States, according to the annual tions; and has been active on important committees of that organizat ion. report of the Secretary-Treasurer of the United States Building & Loan League, as published in the 1931 Building & Loan Annals. In its issuo of Dec. 27 the Now York Commissioners Meyer and Lee Are Renominated to Inter-State Commerce Commission by President 'from which we quote, wont on to say: Hoover. During 1030 more than 12,000.000 members and depositors In these Institutions received about $435.000.000 In dividends Two members of the Inter-State Commerce Commis and interest. Despite sion general business conditions, the total assets of these associati ons increased were renominated on Dec. 17 by President Hoover to their $129,000,000 over 1929. The report showed 11,767 building and loan associations places on the Commission. They are Balthasar II. actively operatMoyer, ing in the United States during 1930. Of the total assets of 88,824,119,159, a recognized world authority on railroad transportation, about 88%. or $7,760,163,958 is invested in mortgage loans. The amount who has served 21 years of mortgage loans made during 1930 is estimated on the Commission, and William E. at $1,300,000,000, a decrease of about $500,000.000 from the preceding year. Only 12 States Lee, who was first appointed last year to fill the unexpir showed decreases in assets for the year, while 37 States, ed Including the term of J. B. Campbell, resigned. 72 FINANCIAL CHRONICLE Claude R. Porter to Serve as Chairman of the InterState Commerce Commission in 1932. Claude R. Porter, Democratic appointee from Iowa, will (said a Washington dispatch to the "Wall Street Journal', of Dec. 29) act as Chairman of the Inter-State Commerce Commission in 1932 under the practice of that body whereby each member in turn serves a year as Chairman. Railroad Unions and Rail Presidents to Meet Jan. 14 to Discuss Proposed Wage Reduction. The Railway Labor Executives' Association, comprising 21 brotherhoods and unions, met in Cleveland Dec. 29 and set Jan. 14 as the date for meeting in Chicago with a committee of nine railroad presidents to discuss the unions' proposals for unemployment relief and the railroad's proposed 15% wage cut. This action is in accordance with the program started at Chicago early in December, when the Association asked the railroads to appoint a committee with power to negotiate the wage question and unemployment problem. Railroad presidents met in New York Dec. 18 and appointed nine of their members on a committee to meet with the workers' representatives as soon as a conference could be arranged. of permission of the Inter-State Commerce Commission, No. 110,830 Dec. 24 1931," and "The form of this tariff (or supplement) is permitted permission by authority of the Inter-State Commerce Commission, special No. 110.830 of Dec. 24 1931." Commission Regulations. In the Matter of Increases in Freight Rates and Charges: It appearing, That by its reports entered in the above-entitled proceeding, which are hereby referred to and made a part hereof, the Commission authorized certain increases in the rates and charges of railroads within the continental United States; It Is ordered, That all outstanding unexpired orders of the Commission, whether or not effective upon the date of this order, authorizing or prescribing rates and charges which have or have not been published at the date of this order, and all outstanding suspension orders, be, and they are hereby, modified to the extent necessary to permit the increases herein authorized to be applied to the rates and charges authorized or prescribed In or maintained or held by virtue of said outstanding orders; but that in all other respects said orders shall remain in full force and effect. It is further ordered, That all tariffs or supplements changing rates now maintained or held by virtue of outstanding orders of this Commission shall bear on their title page the following: 'Rates shown in this supplement (or tariffs supplemented hereby) published under authority of outstanding orders of the Inter-State Commerce Commission are increased herein under authority of order of the InterState Commerce Commission in docket No. 103 (ex parte), dated Dec. 24 1931." And it is further ordered. That a copy of this order be served on each carrier party to said orders and that a copy thereof be inserted in the docket in each such proceeding. New Master Tariff Filed by Railroads Shows Freight Rate Increases Which Are to Become Effective on Jan. 4—Collections on March 11—Payments to Credit Corporation for Loans to Weak Roads Are Set for March 31. The master tariff covering the freight rates to be increased on certain commodities by all railroads of the country under the marshaling and distributing plan of the Association of Railway Executives was filed Dec. 29 with the Inter-State Commerce Commission. Under the terms of the tariff, the new rates,from which $100,000,000 in additional revenue is expected, are to become effective on Jan. 4. The New York "Times" of Dec. 30 refers to the matter as follows: A tentative organization has been set up to carry on the preliminary work of the Railroad Credit Corp. for the collection and distribution in the form of loans to weaker roads of the fund to be obtained by the increased freight rates. No applications for loans have been made to the corporation as yet, although it is understood that some roads have borrowed money from banks on the strength of what they expect to receive from the corporation at a future date. The first collections by the corporation are expected to be made on or about March 11, with March 31 as the time limit for payment of the revenues resulting from the increased rates. The payments will be the full amount of carrier incomes resulting from the so-called emergency surcharge. Unless these funds are paid into the corporation by March 31, an interest charge of 8% is to be levied on the funds in arrears. The tariff filed with the Commission Dec. 29 described only the various commodities whose rates are to be increased, and the amount of the increase, no specific rate being mentioned. The latter are arrived at by superimposing the separate increases on existing rates, the aggregate of the increase for the entire railroad system amounting to slightly more than 3% on the basis of 1931 traffic and about 4% based on the traffic of 1930. While adjustments in the rate increases provided in the master tariff will be made by the railroads to prevent traffic diversions, the Commission believes that the aggregate increase in rates will be sufficient to prevent further defaults by roads in need of assistance on their fixed interest requirements. President Hoover In a recent statement estimated the number of roads in such danger to comprise about 17% of the carriers. In addition to financial assistance to weak roads from the Railroad Credit opinion Corp., which will not bo available before the middle of March, the President prevails that the Reconstruction Finance Corp. as proposed by to the carriers Hoover will have been established in time to make loans Until the Credit Corporation begins operating. R. H. Aishton of American Railway Association Cites Rail Problems—Limit on Earnings and Lack of Regulation for Competitors Chief Drawbacks. A plea for legislation to permit railroads to build up their reserves in periods of prosperity so that they may be prepared to face adverse conditions brought about by business depression and for the regulation of all land and water agencies engaged in inter-State commerce was made Dec. 27 by R. H. Aishton, President of the American Railway Association and Chairman of the Association of Railway Executives. Mr. Aishton estimates the gross operating revenues of the railroads this year as about $4,259,000,000, or 20.3% under those in 1930, and the return to the carriers on the basis of property investment at but 1.99% as compared with 3.36% in 1930, the lowest since 1920, when it was but 0.21%. Passenger traffic, he says, is the smallest within the last 27 years. The text of Mr. Aishton's statement follows: themselves, The order of the Inter-State Commerce Commission approving application of the railroads of the country as represented by their tariff publishing agents, to file a "master tariff" containing increased freight rates authorized by the Commission, effective on five days' notice, was announced Dec. 24 (see "Chronicle" Dec. 26, p. 4266). The formal order of the Commission follows: FORMAL ORDER. carriers Application made by B. T. Jones, agent, for and on behalf of all for which he acts as agent under authority of powers of attorney or conCommission. currences on file with the Inter-State Commerce Ex Parte No. 103: 15% case-1931, waive tariff rules. B. T. Ordered: That under the application dated Dec. 23 1931, made by Jones, agent, for and on behalf of all carriers for which he acts as agent the with file on under authority of Powers of Attorney or Concurrences Inter-State Commerce Commission, the said carriers and their duly author !zed agents are hereby authorized to publish and file with the Commission a tariff of emergency charges and special supplements in the manner and form as set forth in Exhibit A and Exhibit B attached to and made a part of the application without regard to the terms of Rules 2(a), 4(1), 5(3), 9(a), 9(e), 9(h), 9(k) and 54 of Tariff Circular No. 20 and as expiring with March 31 1933 unless sooner canceled or extended and to make said tariff of emergency charges and special supplements effective, simultaneously on not less than five days' notice to the Commission and the general public by posting and filing in the manner required by law. This permission is limited strictly to its terms and is void unless the tariff and supplements issued hereunder are filed with the Commission within 30 days from the date thereof. The tariff and supplements issued hereunder must bear the notations "Issued on five days' notice under special [VoL. 134. The railroads of this country, as they emerge from 1931,find in common with industry in general, confronted with problems largely of a financial nature, due for the most part to the present business situation. to be However, the present problems of the railroads can also be said due in part to two other factors. They are: railthe prevent which system, 1. Defects in the present regulatory enable them roads from building up their reserves in normal times so as to can to be prepared to face conditions such as now exist, for no system prosperous times be termed sound which encourages reductions In rates in depression. economic and necessitates increases in times of commerce is con2. Lack of appropriate regulation so far as inter-State to bring about cerned of the various agencies of transportation designed all land embracing a complete and co-ordinated system of transportation and water agencies. Revision of Law Is Urged. with the resultant increase in traffic, will unbusiness, in upturn Any of doubtedly be ofimmense aid to the rail transportation systems the Nation.. in order to preserve, There is need, however, for other steps to be taken n serbice. transportatio adequate an and credit in the public interest, railway in the To meet this need there should be a revision of those provisions the Transportation Act which directly and adversely affect the credit of railways. Provision should also be made for the necessary regulation of all agencies and furnishing transportation for hire, so that stability will be established an equal opportunity created among them to compete for the commerce of the Nation. Taxes also impose a heavy burden on the railways of this country. Railway taxes now are approximately 14% higher than they were ten years ago, and it will require the net revenues of the railroads of this country for s period offour months out of the 12 months to pay their taxes in 1931. In the matter of traffic, the year 1931 has been a sad disappointment deto the railways. Earnings have correspondingly failed to improve, spite the great strides forward made by the carriers in recent years In the matter of increased efficiency and economy of operation. Decline in Loadings Is Shown. for several weeks, Preliminary reports, which will not become complete 37.250,000 cars, indicate that load ing of revenue freight in 1931 will total and 15,577,900 a reduction of 8,630,000 cars or 18.8% under that for 1930, cars, or 29.5% under 1929. in 1931 will handled of freight Measured in net ton-miles, the volume 340,000,000,000 net ton miles, a be, complete reports are expected to show, of 30.9% under 1929. reduction of 19.5% under 1930 and a reduction that the Class I railroads as a Preliminary reports for the year show income in 1931 of $534.000,000, or a whole had a net railway operating investment. Class I railroads in 1930 return of 1.99% on their property income of $885,000,000, which was a return of had a net railway operating Gross operating revenues in 1931 3.36% on their property investment. a decrease of 20.3% under amounted to approximately $4,259,000,000, amounted to $3,275,000,000, a expenses those for 1930. while operating decrease of 17.6% under the previous year. 1031 is based on complete The estimate of earnings for the 12 months of by the Bureau of Railway reports for the first ten months and an estimate The net railway and December. Economics as to earnings in November operating income for the ten-month period totaled $472,306,293, compared with $773,287,275 for the corresponding period in 1930. JAN. 2 1932.] FINANCIAL CHRONICLE Rate of Return by Years. The rate of return on the basis of property investment by years follows: 0.21% 1926 1920 4.98% 2.84% 1927 4.29% 1921 4.64% 3.58% 1928 1922 4.33% 1929 4.84% 1923 4.21% *1930 3 36% 1924 4.74% *1931 (estimated) 1.99% 1925 •Based on investment at beginning of year. Passenger traffic in 1931 was less than for any year within the last 27 years, amounting to 21,800,000,000 passenger miles. This was a reduction of 53.5% under the record year of 1920. The railroads in 1931 installed in service 12,707 new freight cars and 133 locomotives, compared with 76,909 freight cars and 782 locomotives In 1930. Ownership of freight cars by Class I railways on Dec. 1 1931 was approximately 2,205,062 cars, or 4.3% less than on Dec. 1 1923, while the average carrying capacity per car owned increased 3.41 tons per car. This was also a decrease of 159,610 cars, under the high-ownership period September 1925. Locomotives Gained in Power. The number of locomotives owned by Class I railroads on Dec. 1 was 54,861, a decrease of 10.018 locomotives or 15.4% compared with the same date in 1923, but the average tractive power increased 6,698 pounds Per locomotive, or 17.2%. The greatest efficiency on record in the use of fuel by road locomotives was obtained by the railroads in 1931. An average of 118 pounds of fuel was required during the past year to haul 1,000 tons of freight and equipment, including locomotive and tender, a distance of one mile. This average was the lowest ever attained by the railroads since the compilation of these reports began in 1918, being a reduction of two pounds under the best previous record, established in 1930. Record efficiency also marked the use of fuel in the passenger service, an average of 14.4 pounds having been required to move each passenger train car one mile in 1931, compared with 14.5 pounds in the preceding Year. 73 in Omaha will be given employment. The reopening affects a total of 4,000 men. Tennessee Coal, Iron and Railroad Company to Resume Operations in Ensley (Ala.) Mill. A Birmingham, Ala., Associated Press account dated Dec. 24 says: H.0. Rydbag. President of the Tennessee Coal, Iron and Railroad Company, to-day announced the company's rail mill at Ensley will restrine operations Jan. 4, affording employment for 1,000 men. The operations, Mr. Ryding said, will be on a limited scale pending receipt of further orders. Railroads Ineligible for Pool Loans Listed. A list of Class I railroads that are not eligible to participate in loans which will be made by the Railroad Credit Corp. from the proceeds of the emergency freight rate increase granted by the Inter-State Commerce Commission was made public Dec. 30. The roads ineligible and the reasons for ineligibility follow: RAILROADS IN RECEIVERSHIP. Ann Arbor P.R. Seaboard Air Line Ry. Pittsburgh Shawmut & Northern RR. Minneapolis & St. Louis Ry, Wabash Ry. Fort Smith & Western RI'. Florida East Coast Ry. Missouri & North Arkansas ItY. Georgia & Florida P.R. RAILROADS N DEFAULT. Chicago & Erie P.R. (subsidiary of the Pittsburgh & Bhawmut RR. Erie RR.). Spokane Portland & Seattle fly. RAILROADS DERIVING LESS THAN 50% OF THEIR REVENUES FROM FREIGHT TRANSPORTATION (LARGELY INTERURBAN COM. MUTER TRAFFIC). New Jersey & New York P.R.(subsidiary Long Island RR. (subsidiary of Pennof Erie RR.). sylvania RR.). Ulster & Delaware RR.(also in receiver- Staten Island Rapid Transit Co. (subship). sidlary of Baltimore & Ohio P.R.). Atlantic City P.R. (subsidiary pf Reading Co.). OTHER ROADS INELIGIBLE. Texas Mexican Ry.(reason for ineligibility not given). Wage Cut of 10% Accepted by 15,000 Southern Pacific Railroad Men. Fifteen thousand shop employees of the Southern Pacific Railroad Co. to-day accepted a 10% wage cut, effective Jan. 1, says the New York "Times" of Dec. 30 according to an account from San Francisco. The account dated Dec. Railroads to Furnish Store-Door Delivery for Local 29 continues: Shippers. The agreement was signed by Henry C. Kinney, Chairman, and W. P. After many years' agitation by New York shippers for Norris, Vice-Chairman of the Shop Crafts Association's committee and by George McCormick,Superintendent of motive power,and General Manager the operation of a store-door delivery and pick-up system F. L. Burckhalter of the Southern Pacific. It provides that, irrespective of handling freight by the railroads, the carriers announced of what percentage of reductions may be levied against other organized Dec. 18 that they are willing to establish such a service employees, the shopmen's wage shall not be cut to exceed 10%. If other pay cuts are smaller, the shopmen's reductions shall be brought to a cor- as soon as rates can be mutually agreed upon by the railresponding level, with pay retroactive to Jan. I. roads and shippers. If other organizations accept a lower wage effective on a date subsequent After many years agitation by New York shippers for the operation of a to Jan. 1, the effective date of the shopmen's lower pay shall be changed store-door delivery and pick-up system of handling freight by the railroads, accordingly, with restoration of deducted amounts. the carriers announced Dec. 18 that they are willing to establish such a As the entire shopmen's committee, composed of members from all service as soon as rates can be mutually agreed upon by the railroads and points on the Pacific lines of the railroad, added their signatures to the shippers. This announcement was made by J. W. Roberts. Assistant agreement to-day, the Southern Pacific notified the Brotherhood of Main- Vice-President of the Pennsylvania RR., Chairman of the Railroad Contenance of Way employees their members pay will be cut 15%, effective tact Committee, at the annual meeting of the Atlantic States Shippers' In 30 days, Advisory Board at the Hotel Pennsylvania, New York City. Mr. Roberta submitted a schedule of proposed rates which would be imposed in addition the regular freight rates, but they were not available for publication in to Denver & Rio Grande Shopmen Agree to Wage Cut. view of the fact that they are to be the subject of a conference between the The following from Denver, is from the "Wall Street shippers' committee and the railroad executives at a meeting on Dec. 29, when it is hoped that they may be straightened out to the satisfaction of all Journal" of Dec. 31: Shopmen employed by Denver & Rio Grande Western Ry.,acting through concerned. Whether the railroads will operate through the Railway Express or make the General Chairman and board of the company union, have agreed to a 10% reduction in wages predicated on an agreement by the company to a contract with private trucking companies for the pick-up and delivery of freight to door was not made known. keep the shops In operation. In adopting the system in New York it will be following what has been The company management has accepted the condition, and the scale becomes effective as of Jan. 1. The new scale is subject to adjustment in done in some cities for some time and by some railways in other States reaccordance with any agreement reached between the railroads and labor cently, and it is believed that thereby the railroads operating here hope to get back some of the business they have for some time lost to private truck unions of the country. operators. New York Central's Electricians Take Voluntary Wage Rail Inquiry Plan Opposed in Senate—Senator CopeCut of 10%—Part of Shoperafts' Union. land Objects to Immediate Action. In its issue of Dec. 31 the "Wall Street Journal" said: An attempt by Senator Couzens of Michigan to obtain The New York Central's electricians local, which is a part of the national Senate approval of his resolution to create a joint comshoperafts union, has voted to take a voluntary 10% wage reduction. At a meeting Wednesday night the members of the local empowered their mission for a railroad inquiry failed Dec. 18, as other leader to take this much of a cut in the negotiations with the company. Senators expressed a desire to learn more of the purposes of the proposal. The "United States Daily", in reporting 10% Reduction in Salaries of Nashville, Chattanooga the matter, further states: & St. Louis Ry. The resolution was called up by its sponsor who sought unanimous consent for consideration, but Senator Copeland of New York. asserted he The following (United Press) from Nashville, appeared could see no reason for the investigation "because it won't show anything in the "Wall Street Journal" of Dec. 31: more than we already know about the railroads." An expenditure of $3,000 A 10% reduction in the salaries of all officials of the Nashville, Chattanooga & St. Louis Ry. has been made effective Jan. 1. Officers' Salaries Reduced by Richmond, Fredericksburg & Potomac Railway. Salaries of all general officers of the Richmond, Fredericksburg & Potomac Ry. have been reduced 10%, according to a Richmond advice to the "Wall Street Journal" Dec. 28. Opening of Union Pacific RR. Shops. According to Omaha advices to the "Wall Street Journal" of Dec. 31, Union Pacific RR. shops in Omaha, Cheyenne, Denver, Pocatello, Portland and Los Angeles, which have been closed for some time, will be reopened in January for three weeks a month during the first three months of the year, on a four-day week basis. Approximately 1,100 men for the inquiry was authorized by the resolution, and of this Senator Copeland asked "where will $3,000 get you in an investigation so broadL" Senator Couzens pointed out what he termed was an absolute lack of "s forum" into which the inter-State carriers could go to tell of their troubles. He declared there was no Federal agency in existence to which they could turn and for that reason he doubted that anybody knows of the real problems of the carriers. "L have assembled in the preamble of this resolution" said Senator Couzens, "some of the representations that have been made by executives of the carriers. Many of them have complained that Federal relief is needed, but where can they go to present their claims? Congress is the only agency which can grant relief, and Congress doesn't have the facts." As an alternative, Senator Copeland suggested that Senator Couzens draft a bill outlining the proposed relief. With that as a base,the New York Senator thought the carriers would come in and tell their story and legislative proceedings would be under way. He opposed a general inquiry of the type suggested as much because of the time element as for other reasons, he added. Senator Couzens' resolution would create a committee of nine members, three of whom would be Senators and three would be members of the House of Representatives. The other three would be named by the President and might be either Government officials or private citizens. Broad powers 74 FINANCIAL CHRONICLE Would be conferred upon the joint body for the inquiry and Senator Couzens said its purpose would be to ascertain definitely what the facts are and what form of Federal relief, if any; can be accorded. One-third of Net Revenue of Railroads in 1931 Absorbed in Taxes—Findings of Dr. Parmelee of Bureau of Railroad Economics. Dr. Julius Parmelee of the Bureau of Railway Economics estimated on Dee. 23 that taxes will absorb one-third of the 1931 net revenue of American railroads. Associated Press accounts from Washington added: His estimate, based on a compilation for the firse.10 months, showed railway taxes per dollar were 7.5 cents. Using this basis, Dr. Parmelee said the increase from 1920 to 1930 was from 4.4 to 6.6. cents, an advance of 50%. The present ratio is equivalent to nearly 32% of the carriers' net revenue. Eliminating taxes paid the Federal Government, the amount of State and local taxes has shown a continual upward trend since 1920, mounting from $232,206,340 in 1920 to $308,220,732 inC 1930. Dr. Parmelee said. Contest for Control of Transamerica Corporation Begins—A. P. Giannini Accepts Leadership of Associated Stockholders of Transamerica (The group opposing present management)—California Superior Court Dismisses Injunction Restraining Officials of Bank of America National Trust & Savings Association from Interfering in Struggle for Control of Transamerica, But Allows Restraining Order Against the Corporation and Its Officials to Stand. In a letter addressed to the7245,000 stockholders of the Transamerica Corporation under date of Dec. 9 "by order of the Board of Directors," Elisha Walker and James A. Bacigalupi, Chairman of the Board and President, respectively, of the corporation, answered for the first time criticisms of Associated Transamerica Stockholders, the group sponsored by A. P. Giannini, former President of the Transamerica Corporation. The letter (which stated that the directors had decided to advance the next annual meeting of the corporation from March 31 1932 to Feb. 15, in order that "stockholders may determine whether they wish to support the present Board or one chosen by Mr. Giannini") was accompanied by a statement, also signed by Mr. Walker and Mr. Bacigalupi, a digest of which prepared for the press, says in part: . . . It (the statement) unsparingly characterizes the Giannini administration as a period when "stockholders were furnished with only the most meager reports." recapitulates "extraordinary compensation" caused to be credited to A. P. Giannini aggregating over $3.700,000 within three years beginning in 1927, divulges that Transamerica has recently refused to Pay $792,000 demanded by Mr. Giannini as duo him and aassalls theformer Official for his alleged financing, by huge expenditures of the corporation's funds in 1929, an "artificial and costly attempt . . . to peg the market value of its own stock." The implication by "Associated Transamerica Stockholders" that excessive salaries were being paid to Transamerica officials was met by the rejoinder in the management's letters that "the present officers of the corporation are receiving and have received, during the period of the present administration, only normal compensation commensurate with the duties and responsibilities of their respective offices." The letter then comments sharply as follows concerning the sums paid to Mr. Giannini himself: "The only record of extraordinary compensation relates to Mr. A. P. Glannini although he allowed the impression to be created that he worked for little or no compensation. . . There was placed to Mr. Giannini's credit from the cash funds of BancItaly Corp.or subsidiaries of Transamerica during the three-year period 1927-1930 no less than $3,700,000. This sum does not include the $1,500,000 given at Mr. Giannini's request by Bancitaly Corp. to the University of California to establish the Giannini Foundation and for the building of Giannini Hall. Of said $3,700,000, $2,400,000 was placed to his credit between Dec. 20 1929 and Jan. 211930, after the stock market crash and Immediately before his retirement from active service with the corporation. All of said $3,700,000 has been withdrawn by, or paid upon theorder of, A.P. Giannini, except an unpaid balance of $792,000 Which in September of this year Mr. Giannini demanded and which the present Board of Directors, on the advice ofcounsel, has refused to pay. The Board has sought the advice of eminent counsel, regarding the legality of the payments made to Mr. Giannini." Stock Market operations of A. P. Giannini in October 1929, with respect to Transamerica are bared in a passage stating: "When the entire market began to decline at the end of October 1929, the corporation under Mr. Giannini's direction, maintained Transamerica at a high and artificial level from which it fell rapidly when the support was removed. During the four weeks ended Oct. 28 1929, over $68,000,000 was expended by the corporation in the purchase, on balance, of over 1,090,000 shares of Transamerica stock at an average cost of over $62.50 per share. This policy . . . left the corporation at the end of 1929 with a serious reduction in quick assets and with large indebtedness. Another result of that artificial and costly attempt of Transamerica to peg the market value ofits own stock was to give speculators and market operators an opportunity of selling their stock to the corporation at high prices, while loyal stockholders, uninformed of the situation, suffered great losses. Those who sold during this period profited, while those who remained loyal shared in the loss to the corporation resulting from the purchases of Transamerica stock. Following the stock market crash in the fall of 1929, the corporation faced a difficult future. It was at this point that Mr. Giannini retired." To Mr. Giannini's present emphasis upon the necessity of consulting and informing stockholders, the officers of the corporation pointedly retort: "During A. P. Giannini's administration, when he held seven-year proxies from holders of a majority of the stock, stockholders were furnished with only the most meager reports which did not explain the corporation's Drop. 134. financial pos tion. The management which succeeded Mr. Giannini determined to change these methods. One of their first acts was to employ Messrs. Ernst & Ernst, certified public accountants, to make a thorough study of the corporation's affairs. After receiving the report of these accountants,the Board of Directors Issued to stockholders their full statement dated July 12 1930, which was the first official statement adequate to enable stockholders to form their own opinion as to the value of their property. At the same period the Board of Directors caused the shares of the corporation to be listed on the New York Stock Exchange, with whom they entered into an agreement to publish audited annual statements to stock holders." "Your Board," the directors add, "has returned to stockholders the former seven-year proxies running to Mr. Giannini and his associates, in order to restore to stockholders the freedom of voting to which they are entitled." The merger of the Bank of America N. A.(New York) with the National City Bank, recently effected "by virtue of an overwhelming vote of the stockholders of both banks," is lauded as markedly advantageous to Transamerica, which now holds "a very substantial interest" in the latter bank. The Board reiterates its intention eventually to effect "the complete separation of its controlled banks from the other activities of Transamerica." "It is unsound," the Board maintains, "to link through a holding company, the ownership and control of a bank with other unrelated activities, and it is essential to the complete success of any bank that it should be operated and publicly regarded as an independent institution without responsibility for, or connection with, any other business. It was for this reason that your Board announced in September the pollcy of confining the corporation's investments in the banking field to minority interests not involving controlling influence. The eventual separation of Bank of America N. T. & S. A. (California) from the control by Transamerica. In accordance with this policy, will give the bank complete independence in its lending and investment policies, which is the only sound foundation for a bank." "The officers' letter further states, with regard to the Bank of America N. T. & S. A. (California): "In order that there may be no misunderstanding, we wish to emphasize, as previously announced, that no plan for disposing of Transamerica's holdings of stock of Bank of America N. T. & S. A. (California) will be adopted without a vote of the stockholders of Transamerica at a meeting called for that purpose, nor will Transamerica stockholders be asked to vote on any plan until they have had an opportunity fully to inform themselves regarding it at the time of Its submission." In denying the itimation that"manipulation" may have been a contributing factor:to the fall In the market value of Transamerica stock, the management's letter reveals that Mr. Walker,since becoming the Corpora-tion's chiefexecutive officer, haibeen the largest holder of Transamerica stock and "has never sold a single share of his holdings or in any way speculated in the stock directly or indirectly." "All members of the Board," its letter states, "have unqualifiedly endorsed" the policies outlined by them to stockholders on September 22 and now criticized by Mr. Giannini. "The management," continues the Board's letter, "has made definite progress toward putting the affairs of your corporation on a sound and conservative basis." It emphasizes that the administration has "furnished to stockholders frank and adequate reports and audited statements of the conditions and affairs of the Company, which had never previously been made available," that it "has materially reduced the heavy short-time debt of the corporation inherited front the former administration," and that it has restored freedom of voting to the stockholders by returning to them "the former seven-year proxies running to Mr. Giannini and his associates." Associated Press advices from Salinas, Calif. Dec. 10, stated that A. P. Giannini had announced that night that he personally would lead a "fight to the finish" to oust Elisha, Walker, Chairman of the Transamerica Corporation, and "Wall Street domination" from the corporation which he founded. We quote furthermore in part from the account, as follows: He made the statement after he had read a letter from Mr. Walker and James A. Bacigalupi to Transamerica's stockholders. He called the letter "an attack on my personal honesty and integrity." "I will definitely take over the leadership to regain control of Transamerica," Mr. Giannini asserted. Recently he has acted as adviser to Associated Transamerica stockholders, an organization founded to combat the Walker-Bacigalupi policies in the direction of Transamerica's business. He said the letter had been timed "to catch me unaware" as it was not released for publication until after he had left San Francisco to-night for Ventura and Santa Barbara, where he planned to carry on the battle for proxies on behalf of Associated Stockholders, Mr. Giannini said he would lay open his books, both personal and business, to a committeee for investigation if Mr. Walker would do the same thing. He suggested that the press name the committee. "This fight," he added, "will be based on California control for California stockholders against the domination of Wall Street of Transamerica." "You can't get into a fight like this without being prepared to be the target for a lot of mud-slinging," Mr. Gianninl said. "We expected this. After searching my record for 27 years as a banker, all they can say is that I tried to keep up the price of Transamerica stock when the market was falling and that I was credited with $3,700,000 in bonuses. "When!retired from Transamerica I was entitled to 5% of $83,000.000. which I did not take. There are five of us in the Giannini family, and our total wealth doesn't come to a million—no, nor to half a million." On Dec.12 (as published in the San Francisco "Examiner") there was given out on behalf of Mr. Giannini by his son, L. M. Giannini, a statement replying to the letter of Mr. Walker and Mr. Bacigalupi of last week. Mr. Giannini's rejoinder included the following explanation: On Jan. 20 1930 the sum of $1.400,000 was set up in a special fund for the purpose of providing travel expenses, contributions and other expenses subject to the order of A. P. Giannini. . . . The sum of $2,400,000 referred to in the Walker-Bacigalupi letter as having been placed to his credit between Dec. 30 1929 and Jan. 21 1930 was substantially a bookkeeping transaction. . . . The greater part of all the funds referred to was paid out on Mr. Glannini's orders for various expenses of management, for traveling expenses of himself and others on corporation business, for contributions and income taxes on behalf of the corporation. In tho year 1929 A. P. Glanninl paid out of these special funds the entire expenses of the corporation. . . . The balance of $792,000 . . . was not demanded by hint last September as stated and therefore could not have been refused. JAN, 2 1932.] FINANCIAL CHRONICLE 75 On behalf of the Transamerica management, Mr. Walker on Dec. 15, Judge Lyle T. Jacks, the previous day, granted and Mr. Bacigalupi came back with the following statement in Mr. Giannini's behalf a temporar y restraining order rereleased to the press Monday, Dec. 14: turnable in the Superior Court Dec. 21 preventing use of Referring to Mr. L. M. Giannini's statement on behalf of Mr. A. P. the facilities of the corporation and the bank of America Giannini, published in the press Saturday, that the moneys paid to him by Transamerica were used "substantially for the benefit of the corporation," National Trust & Savings Association, which it controls, in Including income taxes of the corporation and "the entire expenses of the obtaining proxies for the present corporation's administracorporation," for 1929, Messrs. Ernst & Ernst, Certified Public Ac- tion headed by Elisha Walker. The dispatch went on to say: countants, have examined the books, records and vouchers of Transameri ca Corporation and Subsidiaries and Bancitaly Corporation and have signed a statement showing in detail the disposition of the $5,212,420. 65 from 1927 to 1931. as revealed by the books. The certificate of the auditors shows that the only Federal income taxes paid out of those funds were taxes of Mr. A. P. Glannini and members of his family. The corporation paid its own income taxes. It is not true that Mr. A. P. Glannini paid the expenses of the corporation for 1929. Of the $5,212.420.65 total amount,$1,500,000 was paid to the University of California by Bancitaly Corporation at the request of Mr. A. P. Giannini for the building of Giannini Hall. The corporate records show that all the remaining $3,712,420.65. except $791,816.70 which the corporation, on the advice of counsel, has refused to pay, was paid on Mr. Giannini's order for the following purposes. Cash withdrawals, personal, household and auto expenses of A. P. Glen/lint and family $640230.40 Stock purchases 697,163.66 Payments to A. P. Glannini Co 753,353.91 Federal income taxes for A. P. Giannini and family 513,163.81 Donations 166,604.78 Payments to individuals 54.540.75 Traveling, hotel, railroad fares and telephone and telegraph 46,526.28 Clubs, memberships, dues and taxes on club dues 25,850.84 Insurance 23,069.52 Total $2,920,603. 95 Regarding the statement on behalf of Mr. A. P. Giannini, that he had never demanded payment of the remaining $791,816.70, such demand was made on Mr. James A. Bacigalupi, President of the corporation, in a cable from Mr.(Hamlin( from Europe in June this year and was followed by an oral request in September 1931 by Mr. L. M Giannini of Mr. Louis Ferrari. attorney for, and director of, the corporation . In reference to the statement by Mr. L. M. Glannini that the sum of $1,400,000 (of the total of $5,212,420.65) was set up on Jan. 21 1930 in a special fund for the purpose of providing traveling expenses, contributions and other expenses, the records show, according to tho Ernst Zz Ernst statement, that $608,183.30 of such sum was withdrawn on the order of Mr. A. P. ()tannin' or his sons for the following purposes: Cash withdrawals, personal, household and auto expenses of A. P. GlannInl and fanally $248,632.59 Payments to A. P. Glannhal Co 72,789.92 Federal income taxes for A. P.(Hamlin'and family 231,608.60 Donations 3.466.00 Gifts and advances to individuals 29,667.10 Traveling, hotel, railroad fares and telephone and telegraph 14,871.18 Clubs, memberships, due and taxes on club dues 7,147.91 Total $608,183.30 As previously stated, the balance of such special been refused to Mr. A. P. Glannini and remains fund (8791,816.70) has unpaid. The above statement was accompanied by a photostatic copy of Ernst & Ernst's report. On Dec. 15 the New York Branch of the Associated Stockholders of Transamerica Corporation made public a statement by A. P. Giannini accepting leadership of the Association. The statement read in part as follows: I am not at The Glannini group charges the Walker group with using the bank's facMtles to wrest proxies from stockholders who have already given their signatures to associated Transamerica stockholders, Glannini supporters. Sweeping in its scope, the complaint filed by Theodore Roche, Attorney for the Glannini group, alleges Walker and his associates in control of Transamerica, have instructed officers of the bank, whom they control by reason of stock ownership, to inform all employees they will be discharged If they become members of the stockholders' organization. Injury to the bank and its business and to stockholders Is being Inflicted through tactics used, the complaint alleges. A later dispatch by the Associated Press from San Francisco (Dec. 16) stated that officials of the Bank of America National Trust & Savings Association had that day won dismissal of an injunction restraining them from interfering in the "proxy fight" for control of the Transamerica Corporation between A. P. Giannini and Elisha Walker, but the restraining order had been allowed to stand against the Transamerica Corporation and its officials. We quote furthermore from the advices as follows: Judge C. J. Goodell issued the modifying order in the Superior Court. He held that the National Banking Act prohibited a State Court from meddling in the affairs of a National bank. He explained that a National bank, such as the Bank of America National Trust St Savings Association, was in a sense an instrumentality of the Federal Government, like the Army or the Navy. Counsel for the Glannini faction intimated later that action might be brought in the Federal Court to restrain the bank's officials from info , encing stockholders to give their proxies to Mr. Walker. In the course of the argument, counsel for the Giannini group asserted that it controlled the voting of 15,000,000 shares of the Transamerica Corp., which owns 99% of the Bank of America stock. The outstanding Transamerica shares number 24,000,000. $3,000,000 Is Raised in Bank of United States Plan— Liquidation Committee Hopes to Have Entire $8,000,000 in a Short Time—Samuel Untermyer Warns Stockholders They Face Heavy Liabilities if Program Fails. More than $3,000,000 toward the 1,000,000 fund to be raised by the Liquidation Corporation, which under the Samuel Untermyer plan would take over the assets of the closed Bank of United States, has been subscribed, the committee in charge of the project announced on Dec. 24. The committee, consisting of Henry W. Torney, H. E. Zimmerman, Moses D. Mosessohn and Abraham Axelrod, expressed confidence that the entire amount would be raised in a comparatively short time, said the New York "Times" of Dec. 25, which gave as follows in part a letter from Mr. Untermyer on the position of the stockholders under the proposed liquidation plan: present concerned about these vicious and mendacious personal attacks upon me out of the mouths of those now guilty of abuse have come volumes of praise of ray record and services, given at a time when they were fully conversant with all the If for any reason this plan should fail, the stockholders will find them.complain. Let their past praise amply answer facts of which they now their present perfidy. The selves in the position of having enforced against them the fixed liability opposition is vainly attempting to substitute attack for facts. of$25 per share,for which they will get nothing In return and against which In the letter to stockholders of Nov. 7 1931. I said: "If a sufficient and they will have no defense. prompt response through proxies indicates it is desired that I take the Under this plan their payment is reduced almost one-half. They get. leadership of the Association I stand ready to do so and pledge my best in return for that payment, preferred and common stock of the Liquidation efforts in their behalf. The decision rests with you." Corporation. If by the careful nursing of the (mete, the depositors can My old Transamerica stockholders, who have by far the largest interest eventually be paid in full without encroaching upon the fund that is to be in Transamerica Corp., have made their decision overwhelmingly that I must now take the leadership so promptly and so subscribed by the directors and stockholders, the latter will get back their of the Association and money and at the same time be freed from all liability. It is, therefore, so devote my best efforts to protecting and advancing their interests. ... manifestly to the interest of the stockholders to take advantage of this plan, We are leading a fight to prevent the squandering of the assets of Trans-- which must otherwise fail, that I cannot understand their hesitation or america Corporation and to restore it to its former prestige and prosperity: that there can be any.argument to the contrary. In this connection I feel I should plead guilty for my part in having placed If any one can offer a better plan, I would be the first to support it. but Elisha Walker in a position of trust, where he has been and is doing so much it is so much easter to criticize than to improve or do something constructo the detriment of Transamerica stockholders. I am now endeavoring, tive that I am sure the stockholders will not permit themselves to be miswith the co-operation of my old Transameri ca stockholders to correct the led by destructive criticism—which offers nothing in the place of what it serious mistake by driving Walker back to his Wall Street haunts and it Is seeking to destroy. is to be hoped that he will invite the opulent I sincerely hope that Mr. Stoner will succeed in his radical and revoand his California tool to accompany him. Ingrate who has adopted him lutionary plan of having the Legislature of the State (if It has the power Walker and Bacigalupi are asking the stockholders to continue them in to do so) repay their losses in full to the depositors of the Bank of United power,so that they may finish the destructive work which they have already States. The present plan in no way interferes with that project. begun of scrapping Transamerica's present structure in favor of a Wall It ought to help it, since it would leave less for the State to pay than Street plan that is approved by rival bankers. I invite the attention of would be the case under a liquidation by the Superintendent of Banks. In the stockholders to the concluding paragraph of the two letters sent out that event it might perhaps also be possible by the same bill to have the under date of Dec. 9 at the expense of Transameri ca signed by James A. Bacigalupt and Elisha Walker. The stockholders and moneys now paid by the stockholders in settlement of their liability re"If, after reading this letter, you have any doubt paragraph reads: turned to them on the same ground. I regret, however, to say that this as to what action idea of the State making good these losses seems so far away that the stockyou should take, you are urged in your own interest to consult any bank holders are not justified in relying upon it, although I would gladly do or banker of standing in your community." everything in my power to facilitate such action. To understand that paragraph the stockholders should have before them It always happens in great movements of this kind, affecting hunanother letter confidentially sent by Bacigalupi to bankers who conduct dreds of thousands of people, that a few dissenters are to be found whose rival banks. Mr. Bacigalupi wrote to rival bankers under date of Dec. 10 voices seem very loud because the others are not heard. But I sincerely 1931, and enclosed the two letters attacking me, showing his abject sur- hope that unless some better reason can be offered the stockholder for render to these rival bankers, he says:"If after studying the s enclosed you approve the policies of the present management of Transameriletters refusing this exceptional opportunity they should be careful about heeding ca, as such counsels of destruction. being conservative, in comparison with those of Mr. Glannini, we shall I feel that in devising and presenting this plan to the stockholders, appreciate it if your organization will co-operate with us by making such and in securing almost $3,000.000 from the directors toward its complerecommendations as you see fit to those stockholders who may seek advice tion, I have discharged my full duty. The issue now rests w ith the stockfrom your institutions." .. . holders. Mr. Giannini on Dec. 14 sought the aid of the courts in The payment of a second dividend to the depositors of the his fight to regain control of the Transamerica Corporation. Bank of United States, making a total thus far of 45%, According to San Francisco advices by the Associated Press was noted in our issue of Dee. 19, page 4101. 76 FINANCIAL CHRONICLE [VOL. 134. Stockholders of Federation Bank & Trust Co. Vote to I holders by Harvey D. Gibson, President of the Manufacturers Trust: Reorganize Institution. The plan calls for a reduction in the par value of the 1,100,000 shares Representatives of the 1,170 stockholders of the closed of the Manufacturers Trust Co. from $25 to $20 and for the issuance of Federation Bank & Trust Co. of New York, at a meeting at 546,750 additional shares of $20 par value in exchange for the 810,000 of $20 par value stock of Chatham Phenix. The ratio of exchange the Pennsylvania Hotel on Dec. 21, approved the plan of shares is 27-40 share of Manufacturers for each share of Chatham Phenix. Following this adjustment the merged institution, which is to conthe bank's directors for reorganization and reopening of the institution. The proposal requires the approval of Joseph tinue under the name of Manufacturers Trust Co., will have capital of $32,935,000, represented by 1,646,750 shares of $20 par value instead A. Broderick, State Superintendent of Banks, and the final of the present $27,500,000 capital represented by 1,100,000 shares of $25 approval of the Supreme Court before it may be put into par value. On this basis the merger will involve a capital increase for the Manueffect. The New York "Herald Tribune" in which the, facturers of only $5,435.000, although the Chatham Phenix reported foregoing appeared, also said: in its last statement of condition total capital funds of $32,277,803, repreSome trouble in obtaining the consent of depositors is expected in certain quarters because of the provision that depositors are asked to permit the use of one-third of their funds for the purchase of stock in the new venture with a par value of $20 a share, at $50 a share. For whatever portion of this one-third of the depositors' funds which is not used for the purchase of this stock the depositors are to receive certificates of deposit maturing in two years and paying 2% interest. The plan, as drawn by Daniel F. Cohaian,former Supreme Court Justice, who is serving the bank gratuftously, contemplates the following: 1. The par value of the outstanding stock shall be reduced from $100 to $20 per share. 2. An additional 55.000 shares of stock (par value $20) shall be issued at $50 a share. 3. Fifteen thousand shares shall be purchased by the application of a portion of the deposits in the bank under arrangements previously referred to. 4. The present stockholders shall receive one share of the new stock in exchange for each share of the old stock. 5. Financial, industrial and civic leaders will purchase 40,000 shares of the capital stock of the new bank, par value $20, at $50 a share. William Green, President of the American Federation of Labor, presided at last night's meeting. Items regarding the closing of the institution and the plans for its reorganization appeared in these columns Oct. 31, page 2865; Nov. 7, page 3038; Nov. 14, page 3199; Dec. 5, page 3727, and Dec. 12, page 3914. sented by $16,200,000 capital and $16,077,803 of surplus and undivided profits. The economy of capital indicated is in line with the precedent established by several recent bank mergers, notably that of the Bank of America, National Association with the National City Bank. Another feature of the plan, outlined in Mr. Gibson's letter, provides for establishing a new corporation, to which will be transferred certain assets of both institutions for the purpose of liquidation. In explaining this, Mr. Gibson said: "There are certain assets in both institutions that over a period of time have become of a nature that realization of the greatest amount therefrom for the benefit of the stockholders depends largely upon the length of time they may be held and the care with which they are handled over such period. When such assets are carried on the books of a commercial bank there is a tendency to hasten liquidation to an extent to affect adversely the realization of the largest possible amount therefrom for stockholders. "It is therefore proposed that prior to or concurrently with the merger becoming effective, certain assets of both your company and of the Chatham Phenix National Bank & Trust Co. any be transferred to a new corporation for the purpose of ultimate orderly liquidation. For the assets so transferred the new corporation will issue to the merged institution its notes, debentures or other obligations in an amount and of a character to be determined by the boards of directors of the two institutions, and the capital stock of such now liquidating corporation is to be issued to the stockholders of the merged institution on a share for share basis." In this way, Mr. Gibson explained, the benefits from the liquidation of assets will accrue to the merged bank and to its stockholders, each stockholder retaining the same pro rata interest in the assets transferred to the new corporation as he would have had if they had remained in the bank. It is proposed also to increase from 28 to 40 the number of directors of the Manufacturers Trust Co. ITEMS ABOUT BANKS, TRUST COMPANIES, &C. Two New York Coffee and Sugar Exchange memberships The Directors of the Manufacturers Trust Company and were reported sold this week at $5,500. That of Edward M. Hamlin to George H. Logan and that of the late William Chatham Phenix National Bank St Trust Co., who voted Dec. 3 to merge the two institutions, formally approved the Robt. Craig to F. Shelton Farr. merger agreement on Dec. 24. Following the meeting on The New York Cocoa Exchange membership of Jesse L. Dec. 24 of the two Boards, President Gibson of the ManuLivermore was sold this week to F. K. Meschlag for $1,600. facturers Trust, announced two additional members of the 5. Board of Directors of the new bank which will result from The annual New Year's celebration of the members of merger to be known as Manufacturers Trust Company. the thelNew York Stook Exchange was held on the floor at the The two additional members will be: Ellis P.Earle,President, closelon Dec. 31. The usual music, confette, and general Nipissing Mines Company, at present a director of the holiday revelry marked the occasion. Instead of making a Chatham Phenix National Bank and Trust Co., and L. Boyd collection from the members to pay the expenses this year, Hatch, President and director, Atlas Utilities Corp., who the:Committee in charge took care of the costs from balances has been active in the expansion carried on by that corleftlfrom previous years, and any funds contributed this poration. The selection of Mr. Earle and Mr. Hatch comyear will be turned over to the Emergency Unemployment pletes the Board of the new bank which will consist of 40 Committee. members; 38 of those invited to be directors were named on 17, when Mr. Gibson also announced that the name Dec. After the one-day holiday yesterday (New Year's day) merged institution would be Manufacturers Trust Co. the of Exchange, Curb York the New York Stook Exchange, New Dec. 30, Mr. Gibson announced the following appointOn and the securities department of the New York Produce of officers of Manufacturers Trust Co.: promotions ments and Exchange will be open as usual to-day (Jan. 2). Commodity Harold S. Miner, M. Ray Coffman, Frederick V. Geese, formerly Monday. markets, however, will not reopen until Assistant Vice-Presidents, were appointed Vice-Presidents. William G. Rabe and William P. Dunn Jr., formerly Assistants to the Rescinding former action of the Boards of Governors, the President, were appointed Vice-Presidents. Los Angeles Stock and Curb Exchanges have also voted William E. Ford, Henry J. Ruppel and Joseph Ruhanow, formerly Assistant Secretaries, were appointed Assistant Vice-Presidents. to remain open to-day. Raymond C. Deering and Eric G. Anderson were appointed Assistant Both the Montreal Stock Exchange and the Montreal Comptrollers. Years New holiday; two-day Curb Exchange will observe a The merger plans were referred to in these columns Dec. and to-day (Jan. 2). Other Exchanges holidays were noted 5, page 3726; Dee. 19, page 4102 and Dec. 26, page 4270. in our issue of Dec. 26, page 4270. John N. Voorhis, upon the completion of 50 years of Joseph R. Swan, President of the Guaranty Co. of New service in the employ of the Chemical Bank & Trust Co. York, announced on Dec.28 that at a meeting of the Directors of New York, was presented by Percy H. Johnston, Presiof that company a resolution was passed to reduce its capital dent, to the Board of Directors of the bank at their regular stock from $20,000,000 to $10,000,000, and legal steps to meeting on Dec. 31. Entering the service of the Chemical that end were authorized. Mr. Swan added the following Bank on Jan. 2 1882, at the age of 20, Mr. Voorhis has statement: served during the past 50 years in various clerical positions, "The decision of the Guaranty Co. of New York to reduce its capital and is now vault officer at the bank's main office, 165 comthe stock from $20,000,000 to $10,000,000 comes from the fact that appreciation of his long and faithful service, pany has at the present time surplus funds which it does not deem neces- Broadway. In effected the by of the Chemical Bank & Trust Co. be will Directors reduction of Board the sary for the conduct of its business. This purchase for cash of 100,000 shares at par from the Guaranty Trust Co. this week presented Mr. Voorhis with an appropriate gift. of New York, the sole stockholder." Further particulars have this week been made available regarding the plans for the merger of the Manufacturers Trust Company and the Chatham Phenix National Bank & Trust Company of this city. A meeting of the stockholders of the Manufacturers Trust Company will be held on Jan. 18 to ratify the plans. With regard thereto the New York "Times" reported the following details, as given in a letter addressed to the stock- The Fifth Avenue Bank of New York has elected John Sloane and Dunlevy Milbank directors. Mr. Sloane is President and a director of W.& J. Sloane and Mr. Milbank is a Trustee of the Franklin Savings Bank and a director of the Texas & Pacific Rarilway Co. Edward L. Love was this week elected a Vice-President of the Chase National Bank of New York. JAN. 2 1932.] FINANCIAL CHRONICLE Advices from Whitehall, N.Y., Dec. 30 by the Associated Press reported that the National Bank of Whitehall was closed on that day by action of its Board of Directors a short time after its doors had opened for the day's business. The New York State Banking Department, in its weekly Bulletin Dec. 26, announced that it had taken over on Dec. 23, the Vitebsker Credit Union, located at 1539 Madison Avenue, New York City. The Department's announcement said: Superintendent of Banks Joseph A. Broderick, pursuant to the provisions of Section 57 of the Banking Law, as amended by Chapter 664 of the Laws of 1930, has taken possession of the property and business of the Vitebsker Credit Union. In view of the general unsatisfactory condition of the affairs of this Credit Union, the Superintendent deems it unsafe and inexpedient to permit it to continue in business and has, therefore, pursuant to the authority vested in him, taken possession of the said Credit Union for the purposes of liquidation. The amount due members, as shown by the books as at the close of business Oct. 20 1931, was $2,687. 77 mechanics of banking with the process of liquidating the assets and paying the obligations of the Peoples Bank & Trust Co. Mr. Reynolds said that the plan for liquidation comprehends the payment at par of all stockholders in the Peoples Bank & Trust Co., and added that the capital funds of the institution "are well able to meet the situation." The bank is capitalized at $150,000 representing 1,500 shares at $50 a share. The last known quotation on the stock, made two years ago, was $75 a share: . . . The Peoples Bank & Trust Co. remained open for business, to-day (Dec.28). Mr. Reynolds said that it would remain open until such time as the mechanics of the liquidation process could be put into effect at the Branford Trust Co. "The depositors of the Peoples Bank & Trust Co. are fully protected as a result of this move and they like the stockholders will lose nothing," Mr..Reynolds declared. Mr. Brainard is President and Clarence R. Lake is Secretary and Treasurer of the Peoples Bank & Trust Co. Richard Bradley is President and William R. Foote Is Secretary and Treasurer of the Branford Trust Co. The stock of the Branford Trust Co. is selling at $600 a share. The bank is capitalized at $25,000 and has a surplus; of $87,000. Announcement was made on Wednesday of this week, Dec. 30, by W. Perry Curtiss, President of the Union & New Haven Trust Co. of New Haven, Conn., that his institution had acquired the assets and had assumed and It is learned from Nyack, N. Y. advices by the Associated agreed to pay the deposits of the Congress Bank & Trust Press on Dec. 29, that effective to-morrow, Jan. 1, the Rock- Co. of New Haven. The foregoing is learned from the New land County Trust Co. of Nyack was to be consolidated with Haven "Register" of Dec. 30, which continued, as follows: the Nyack National Bank & Trust Co. The new institution This was welcomed this morning by the banking fraternity of New will be known as the Nyack National Bank & Trust Co. It Haven and the community at large. The merger will remove one bank from a territory which is well supplied will have resources of $11000,000 and capital of $1,000,000, with banking facilities and add the assets of the merged bank to a financial making it the largest bank in Rockland County, the dispatch institution that is noted through New England and the East for its Strength and conservatism. stated. Financial leaders to-day are looking to the consolidation The Germantown National Bank of Germantown, N. Y., closed its doors on Dec. 29. Loss of confidence as a result of the discovery last year that Clyde De Witt, convicted Columbia County Treasurer, had misappropriated $64,000 of the bank's funds, was given as the reason. De Witt, at that time, was Vice-President of the institution. Associated Press advices from Germantown from which the foregoing is taken, continued as follows: A run on the bank began two weeks ago, and until the doors were closed more than $100,000 was withdrawn. An hour after the opening to-day the officials called in the Comptroller. The institution had deposits of about $400,000. The bank was the only one in Germantown, a historic old town on the Hudson River. On Dec. 19 the New York State Banking Department approved a reduction in the capital of the Bank of East Aurora, N. Y.from $175,000 to $150,000; a reduction in the par value of the shares from $100 to $25 each, and an increase in the number of shares from 1,750 to 6,000. as the flnalstep needed in simplifying the banking situation in New Haven. Due to the fact that it will take a few days to accomplish the actual merger, business will continue as usual at the former address of the Congress Bank & Trust Co. The business, however, will be conducted under the direct supervision of the Union Ss New Haven Trust Co. Once the many details can be arranged, all assets and equipment of the merged Institution will be transfered to the trust company. Nests of safe deposit boxes will be transferred bodily to the large vaults in the Trust Company ; Building. At the present time it is undecided how many of the Congress Bank personnel will be taken into tho Trust Company force. It is not anticipated, however, that any changes will be made in the Trust Company's list of officers. No statement was made as to how the stockholders of the Congress Bank & Trust Co. will fare as a result of the merger. The control of the Cpngress Bank & Trust Co. is in the hands of a small group of stockholders and it was stated that it will depend upon the results of liquidation of the Congress what the stockholders of that bank will receive. Although agreement was reached late last night by officers and directors of the two banks, many details remained to be worked out and the officers of the two institutions war-. closeted throughout the entire morning on these matters. The action of the Union & New Haven Trust Co. in taking over the smaller bank has the full approbation of State Bank Commissioner George J. Bassett, he declared in a statement to the "Register" this morning. "This move materially strengthens the banking situation in New Haven;". the Commissioner said. In its last statement, Sept. 29 1931, the Union & New The Comptroller of the Currency on Dec. 22 issued a charter for the Montour National Bank in Montour Falls, Haven Trust Co. reported capital of $1,458,700 with surplus N.Y., with capital of $25,000. Charles M.Weed is President and undivided profits of $2,182,865 and deposits of $110 668,061, while the Congress Bank & Trust Co. on the same and Belle P. Cornell, Cashier. date showed capital of $250,000 with surplus and undivided That the West Haven Bank & Trust Co., at West Haven, profits of $227,593 and deposits of $1,327,405. Conn., with deposits of approximately $2,700,000 had failed The private banking firm of Kazemekas & Co., of Waterto open on Dec. 24, was reported in Associated Press advices bury, Conn.,failed to open for business on Dec.24,according from that place on the date named, which went on to say: The institution was a combination of the former West Haven Bank & to Associated Press advices from that city on the date named; Trust Co., and the Home Bank & Trust Co., which merged last April with a capital of $100,000. The State Manual listed savings deposits of The bank, which was founded in 1908, was capitalized at $1,875,375, commercial deposits of $830,796, undivided profits of $47,- $100,000, the dispatch stated. 777, and surplus of $30,770. Meanwhile heavy withdrawals from other banks in the New Haven area resulted in a ruling by the New Haven Clearing House that all members must require the 90-day statutory notice for the withdrawal of savings deposits. A statement by bank officials said recent heavy withdrawals made it necessary to close in order to conserve assets and protect depositors. No statement was made relative to the possibility of reopening. From the Hartford "Courant" of Dec. 80, it is learned that at a recent meeting of the directors of the Greenwich Trust Co. of Greenwich, Conn., Nathaniel A. Knapp, was appointed President, filling the vacancy caused by the resignation of John Maher, who retired on account of ill health. Other officers of the institution were re-elected. Mr. Knapp, the The Branford Trust Co., Branford, Conn., on Monday of new President, has been Town Treasurer of Greenwich this week (Dec. 28) began the orderly liquidation of the since 1920 continuously and previously served in that capaassets and liabilities of the Peoples Bank & Trust Co. of city from 1906 to 1909. Branford. The movement was undertaken following a lengthy conference the previous night at the home of J.Edwin Probable reopening of the Federal National Bank of BosBrainard, President of the Peoples Bank & Trust Co., and a ton, which closed its doors on Dec. 15, is indicated in the former Lieutenant-Governor of Connecticut. The conference following from the Boston "Transcript" of Tuesdays Dec.29: in turn followed a meeting of the directors of the Peoples Confidence that the Federal National Bank will be rehabilitated without Bank & Trust Co. held Saturday, Doc. 26. Following the loss of a penny to depositors was expressed to-day by Charles J. O'Malley, conference Sunday night, Karl B. Reynolds, a director of the chairman of a committee which is taking steps to reorganize and reopen the institution, which was placed in the hands of a Government receiver by Peoples Bank & Trust Co., issued a statement which read: a vote of the directors a fortnight ago, following heavy withdrawals. "Heavy withdrawals following the closing of other banks caused considerable strain on the Peoples Bank & Trust Company, which, to protect its depositors, takes this present action of merging with the stronger Branford Trust Company." The New Haven "Register." from which the foregoing is taken, continued in part as follows: Mr. Reynolds stated this morning that the action is not a merger in the sense that the interests of the two banks will be permanently combined. Rather, lie said, it is a temporary merging of the Branford Trust Co.'s Not a dissenting voice was raised to the plan of reorganization which was outlined at a meeting of more than 100 depositors and other interested persons at the bank yesterday afternoon (Dec. 28) by President Daniel C. Mulloney. The plan which President Mulloney and other officials believe will make possible the reopening of the bank provides in substance for recapitalization and for subscription for new stock, either by cash or by assignment of a portion of the deposits. The plan calls for agreement by the depositors to allow 25% of the deposits to be utilized for capital stock in the organisation. 78 FINANCIAL CHRONICLE Mr. O'Malley, a Boston advertising man, who was named head of the reorganization conunittee, said that while it would take two or three weeks to communicate with all the depositors, reports already received indicated that more than half of the depositors were in favor of the plan. The cornnrittee includes more than thirty prominent depositors, representing not only the main bank of the Federal National, but its branches in the Back Bay, East Boston, Mattapan, South Boston and at the Boston Fish Pier. The committee already has received pledges of substantial subscriptions and expects that the bank will have $3,000,000 actual capital in reserve before reopening. The development of the stock is expected to wipe out losses which might result from liquidation of the bank's assets at present depressed values and make possible payment in full to every depositor. Mayor James M. Curley and State Treasurer Charles F. Hurley were present at the meeting and promised to give whatever official aid they spoke, pledging their could to the reorganization project. Others who spoke H. Cole, support of the plans for reorganization, were General Chester I. Campbell, James L. Crandall, Elder Markson, Matthew Cum.znings, Eben Hutchinson, Edwin C. Lewis and F. J. Bagocius. Closing of the Haverhill Trust Co. at Haverhill, Mass., was reported in the following Boston advices on Dec. 27: The Haverhill Trust Co. of Haverhid closed yesterday (Dec. 26) and its affairs were taken over by State Bank Commissioner Guy. Total deposits in the bank amounted to more than 32,500,000, of which about $1,500,000 was in the savings department and $1,088,000 in the commercial. Liabilities of the trust department are reported to be $256.000, the capital stock of the bank is $200,000 and the surplus account as of Sept. 29 was $50,000. According to the State Treasurer's office the State had a deposit of $36,000 in the Haverhill Trust Co. Clarence G. Appleton of Montclair, N. J., recently resigned as Chairman of the Board of the New Jersey National Bank & Trust Co. of Newark, N. J. His resignation was accepted reluctantly by the Board who adopted a resolution of regret. The Newark "News" of Dec. 17, from which the above information is obtained, went on to say: Mr. Appleton's health has not been good and he has been advised to rest. He had been with the bank since the merger with the Guardian Trust Co., of which he was President. [Vet, 184. by the closing on Dec. 22 of the Seacoast Trust Co. of Asbury Park, N. J., according to Asbury Park acleiees on Dec. 24 to the New York "Herald Tribune." The First National Bank of Bradley Beach, N. J., closed on Dec. 24 in the face of heavy withdrawals, according to a press dispatch from that place on Dec. 24, appearing in the Brooklyn "Eagle" which furthermore said: It had opened for business as usual in spite of the fact that heavy withdrawals were made yesterday Dec. 23. When it appeared that the withdrawals were to continue the board of directors decided to suspend and turn the bank over to the Controller of the Currency to conserve its assets. The First National is the girth bank to close in Monmouth County within throe days. The Merchants' Trust Co. of Red Bank, N. J., closed its doors on Dec.23 shortly after it had opened for business, and was taken over by the State Department of Banking & Insurance, at the request of its President, K. M. McQueen, according to advices from Red Bank,printed in the Brooklyn "Eagle" of Dec. 23. The Matawan Bank at Matawan, N. J.; was closed OD Dec.28 by order of its Board of Directors and was taken over by the New Jersey State Department of Banking & Insurance. A notice posted on the doors said: "The bank has been closed in order to preserve the bank's assets for the benefit of its depositors." Associated Press advices from Matawan on Dee. 28,from which we have quoted above, went on to say: Christian Heuser, President of the bank, said that all available cash had been exhausted by heavy withdrawals as the result of the closing within the week ofseven other banks in the county. On Sept.29.last, the Matawan Bank reported total deposits of $1,107.700. The Lincoln National Bank of Passaic, N. J., was placed in voluntary liquidation on Dec. 16. This institution, According to Associated Press advices from Atlantic which was capitalized at $500,000, was taken over by the City, N. J., on Dec. 21, the merger agreement entered into Peoples Bank & Trust Co. of Passaic, as noted in our issue day was that last ratified on by bank directors in October of Nov. 14 last, page 3200. by stockholders of the Guarantee Trust Co., Marine Trust Co., Atlantic Safe Deposit & Trust Co., Neptune Trust The Burlington City Loan & Trust Co., Burlington, N. J., Co. and Seaside Trust Co. The merged institutions will be failed to open for business on Dec. 29. Associated Press known as the Guarantee Trust Co. The capital stock of the advices from Burlington, reporting the failure said: new company will be $1,000,000 divided into 50,000 shares A statement by officials said the Board of Directors at a special meeting of the par value of $20 each, and distribution of the new lard night (Dec. 28), recommended that the State Department of Banking instiof merged the stockholders to made be and Insurance take over the institution "owing to large seepage in deposits stock is to during the last several weeks and depreciation in value of assets, as a tutions on the following basis: The bank had approxiGuarantee Trust Co. for each share of old stock, four shares and 28,400- result of disturbed financial market conditions." 30,000 of a share; Marine Trust Co. for each share of its stock, four shares mately 5,000 depositors. In September the capital, surplus and undivided profits totaled $580,000 and 28,425-30,000 of a share; Atlantic Safe Deposit & Trust Co., for each securities share of Its stock, one share and 17,700-30.000 of a share; Neptune Trust and the deposits $2,066,000. Among resources were bonds and new. the of to $1,298,000. The president of the bank is Walter E. Robb, the share amounting a of GO,,for each share of Its stock, 16,965-30,000 Vice-President, W. E. Ridgeway, and the Secretary and Treasurer, H. V. Holmes. The First National Bank of Whitehouse Station, N. J., A dispatch from Burlington to the Philadelphia "Ledger" on Dec. 16 was taken over by National bank examiners for Dec. 29 contained the following additional Information: on liquidation shortly after the arrest of its Cashier, Russell Reports are current that efforts will be made to reorganize the company, D. VanFleet, for alleged embezzlement of its funds, ac- the resources of which in October were listed at $2,652,724.63. cording to advices from Whitehouse to the Newark "News," Consolidation of the First National Bank of Wharton, which went on to say in part: it is expected that the bank wilt be able to pay its depositors, most of N. J., with the National Union Bank of Dover, N. J., was them farmers, in full. announced on Dec. 30, according to Dover advices by the The complaint against VanFleet was made by H. E. Stewart, who, with three other examiners, arrived at the bank at 8 a. m. yesterday. He said Associated Press on that date, which furthermore stated that it would require three or four more days to complete the check-up. the Wharton bank would become a branch of the National After discovering the alleged discrepancy in the bank's accounts, Stewart Union Bank of Dover. and Flemington of Webster George Peace the of Justice appeared before embezzling $3,500 filed the complaint against.VanFleet, charging him with Affairs of the Monmouth Title & Mortgage Guaranty Co. taken into custody at the bank a "on or before Dec. 15." VanFleet was engaged Hyman Herr of of Asbury Park, N. J., were placed in the hands of the New short time later by Sheriff Wean. VanFleet completion of the Flemington as his counsel and waived hearing until Jersey State Department of Banking & Insurance on Wednesaudit. day of this week, Dec. 30, at the request of the directors. Stewart posted this notice in the doors of the bank at 2:30 P.In. the Currency,is in Commissioner, Christopher A. Gough of the In"This bank, under the direction of the Comptroller of Deputy by resolution of charge of II. E. Stewart, National Bank Examiner; closed Bureau of the Department, was placed in charge of surance the board of directors." money in the decline of the institution. Advices to the Newark "News" from A rumor was that VanFleet had lost considerable the stock market. which we have quoted above, continuing was cashier for Asbury Park,from VanFleet, employed by the bank for about 15 years, said: seven years. . . . President Richard W. Stout of the Monmouth issued the following A month ago VanFleet was elected President of the Hunterdon County & statement: Bankers' Association. Ile is associated in the insurance firm of VanFleet "In view of present conditions the Board of Directors deemed It adHeger here. 1 visable to request the Commissioner of Banking and Insurance to take The First National Bank of Whitehouse Station was organized May $30,000 possession of the company to conserve its assets for the benefit of the 1908. Its statement issued Sept. 29, last showed its capital was The deposits as of that date were listed as $578,859 and the surplus and certificate and bond holders." . application for a Stout explained the action of the Board was to forestall undivided profits were given as $47,980. to follow closing of receiver which would be necessary if liquidation was The Now Jersey Trust Co. of Long Branch, N. J., with capital of $150,000, did not open for business on Dec. 23, according to the Now York "Evening Post" of that date, which continuing said: A notice, posted on the door. said the bank had been taken over by the State Banking Department. The company's assets recently were reported rks $1.300,000. C. Ma Francis is Acting President. the company. showed total resources of approxiA recent statement of the Monmouth surplus, $1,500.000. The Monmouth mately $5,500,000 and capital and County Guaranty Mortgage Co., was formed in 1927 by a merger of the Co. and Monmouth Title Co. Its business Asbury Park Mortgage & Title Ocean Counties and most of its certificate& is chiefly in Monmouth and and mortgages are held there. Grove Bank at Asbury That the Asbury Park & Ocean failed to open on Dec. 24 was reported in had J., N. Park, The Ocean Grove National Bank, Ocean Grove, N. J., Asbury Park on that day, printed in the Brookwith total resources of $2,263,622, was closed on Doc. 24 advices from "Eagle", which went on to say in part: lyn withdrawals caused heavy following assets, its to conserve JAN. 2 1932.] FINANCIAL CHRONICLE 79 A notice pasted on the door stated that the bank had been taken over by the New Jersey State Department of Banking & Insurance at the request of the board of directors to conserve its assets. The bank at its last statement made public on Aug. 21, listed deposits of 310.032,000 and assets of 312,024.000. The Bank of Harrison, at Harrison, Ohio, near Cincinnati, one of the few banks not incorporated in Ohio, was taken over on Dec. 29 by the Ohio State Banking Department, according to Associated Press advices from Cincinnati, which Announcement was made on the night of Dec. 27 that all furthermore said: It had a capital stock of $10,000, assets of $116,000, a surplus of $28,1100, the deposit accounts of the Continental-Equitable Title & outstanding of $82,000, deposits on commercial account of $50,000 Trust Co. of Philadelphia had been transferred to the loans and deposits of certificates of $1,600. Pennsylvania Co. for Insurance on Lives & Granting AnA press dispatch from Troy, Ohio, Dec. 28 to the Cincinnuities of that city. The official announcement of the transaction, as printed in the Philadelphia "Ledger" of nati "Enquirer" stated that authorization was granted that Dec. 28 read in part as follows: day by Judge W. D. Jones for the payment of a 16 2-3% ''An important constructive step in banking in Philadelphia was taken dividend to depositors of the defunct Stillwater Valley Bank. yesterday when the Continental-Equitable Title & Trust Co. transferred Covington, Ohio. Payment will be made by State all of its deposit accounts to the Pennsylvania Co. for Insurances on Lives Co. of banking officials about Jan. 15, as a notice of 15 days must and Granting Annuities. Beginning this morning, the Continental-Equitable discontinues its be made before payment. This is the second dividend paid general banking business and vrill, hereafter, limit its activities to general last February. The first divitrust, fiduciary and title business and safe desposit vaults, maintaining its since the closing of the bank present banking quarters on 12th Street above Chestnut. dend was 33 1-3%, so that with the payment of the second The following announcement, explaining this step, has been mailed to dividend the depositors will have received half of their all depositors of the Continental-Equitable: money, the advices said. "To our depositors: "On and after Monday. Dec. 28 1931, the business of ContinentalEquitable Title & Trust Co., will be limited to general trust,fiduciary and title business and the maintenance of safe deposit vaults. The company will discontinue its general banking business and, with the approval of the Secretary of Banking and the Committee of the Clearing House Association, of which both banks are members, arrangements have been made for the transfer of all deposit accounts to the Pennsylvania Co. for Insurances on Lives & Granting Annuities. The present office of this company, located at 21 South 12th Street, will be continued. "By order of the Board of Directors, Signed, JOHN It. WASTED, Vice-President. . . . "It is understood that the deposits of Continental-Equitable Title & Trust Co. were approximately 89.000.000. The Pennsylvania Co. for Insurances on Lives & Granting Annuities is the oldest and one of the largest trust companies in Pennsylvania. having been originally chartered in 1812. Present deposits are about $175,000.000; capital, surplus and undivided Profits .$39.000,000, and individual trust funds about $835,000,000." The Cornwells State Bank at Cornwells Heights, North of Philadelphia, Pa., closed its doors on Dec. 24 and announced that the institution had been turned over to the Pennsylvania State Banking Department, according to Associated Press advices from Philadelphia on Dec. 24, which added: A notice posted on the door said the officers decided on the move because of heavy withdrawals and to protect depositors. Three banks in Coraopolis, Pa., viz., the Ohio Valley Trust Co., the Coraopolis Savings & Trust Co., and the Coraopolis National Bank, joined forces on Wednesday of this week. In reporting the consolidation, advices from Pittsburgh to the New York "Times" said: Merging of the Ohio Valley Trust Co., established in 1901, with the Coraopolis Savings & Trust Co., established in 1903, into an institution to be known as the Coraopolis Savings & Trust Co., was one phase of the reorganization. The other was a stock trading deal through which the new trust company obtains control of the Coraopolis National Bank, a depository for residents of that borough since 1897. The Coraopolis National Bank will continue under its present officers, but will move to the quarters formerly occupied by Coraopolis Savings & Trust. Charles L. McCune, recently named as "personal banker" to direct liquidation of assets in closed banks here, will be Chairman of the .13 oard and President of the new company, and J. F. Ferguson will be 1st VicePresident and Chairman of the executive committee. The stock exchange deal through which control of the Coraopolis National Bank was obtained is to be submitted to stockholders of the newly formed trust company on Jan. 12. With reference to the affairs of the Main Line Bank of Wayne, Pa., which closed its doors on Oct. 1 last, the Philadelphia "Ledger" of Dec. 24 stated that a plan of the directors for the reorganization of the institution was approved by 150 depositors at a meeting held the night of Dec. 23. The paper mentioned went on to say: The plan, which previously had been approved by the Depositors' Committee, provides for the payment to depositors of 10% on the reopening of the bank, 15% in six months and 25% within a year. The other 60% would be in the form of certificates of participation in the remaining assets. William B. Lex, attorney for the closed bank, who read the plan, announced that the directors would resign prior to the reorganization if the depositors so desired. He said that $75,000 was available as capital should the plan be approved. The plan bore the signature of W. Macklin Witherow as President. A statement of the bank's condition as of Oct. 1 1931, showed liabilities of $783,177.86 and assets of $759,104. Deposits aggregated 8619,501. The Comptroller of the Currency on Dec. 19 issued a charter to the National Bank of Logansport, Ind., with capital Of $176,000. W. A. Deniston is President and E. H. Moss, Cashier. The opening on Dec. 22, of the new bank (which represents a reorganization of the First National Bank of Logansport which closed recently) was reported In advices from Logansport on Dec. 22 to the Indianapolis "News," which said: The National Bank of Logansport was opened here to-day as a new institution with W. A. Deniston, President With the opening, Marc O. Stuart, Receiver of the First National Bank, which closed two months ago, had ready for distribution through the bank a 40% dividend, nearly $1,800,000 to depositors of the old institution. The new bank was organized and $175,000 stock was sold, payments for all stock being made before opening. Frank IticHale, former State Commander of the American Legion, served as General Chairman of the organization committee. David R. Forgan, Vice-Chairman of the executive committee of the Central Republic Bank & Trust Co. of Chicago and one of that city's prominent bankers, died at his hothe In Evanston, ill., on Dec. 26 after a short illness. Mr. Forgan, who was born in Scotland in 1862, began his banking experience in Scotland at the age of 15, when he was given a job as bank messenger at the Clydeside Bank in his native town of St. Andrews. After continuing with the institution for three years he went to Canada where he obtained work in the Bank of Nova Scotia at Halifax, N.S. Later he was placed in charge of the institution's business at Winnipeg, Man., and at Fredericton, N.B. In 1888 the late banker became Assistant Cashier of the American Exchange Bank at Duluth, Minn., and a few years later Cashier of the Northwestern National Bank of Minneapolis, in which institution he was subsequently promoted to a Vice-Presidency. In 1896 he went to Chicago as VicePresident of the Union National Bank and two years later was made President. In 1900 this institution merged with the First National Bank, of which his brother, James B. Forgan, was President. Seven years later Mr. Forgan helped to organize the National City Bank of Chicago, becoming its President. He continued in that capacity until 1925, when the National City Bank merged with the National Bank of the Republic. Mr. Forgan then became Vice-Chairman of the consolidated institution and subsequently Vice-Chairman of the executive committee of the Central Republic Bank & Trust Co., which was formed the past summer by the union of the Central Trust Co. and the National Bank of the Republic. Aside from his banking activities, Mr. Forgan found time for extensive writing on financial subjects. The First National Bank of Shelbyville, Ill., capitalized at $110,000, was placed in voluntary liquidation on Dec. 19 last. The institution has been absorbed by the Shelby Loan & Trust Co. of Shelbyville. The Aledo State Bank at Aledo, Ill., has been closed by the Illinois State Bank Examiner for examination and adjustment, according to Chicago advices to the "Wall Street A small Ohio bank, the Farmers' Deposit Bank of Rich- Journal" on Dec. 23. wood, Union County, was taken over for liquidation by the That the Capital National Bank of Lansing, Mich., had Ohio Banking Department on Dec. 28, at the request of its purchased the assets and assumed the liabilities of the directors, as reported in Associated Press advices from City National Bank of that city, was noted in a press disColumbus, Ohio, which went on to say: patch from Lansing on Dec. 27, appearing in the Chicago Poor business conditions were given as the cause. In its last report the bank listed capital of $30,000 and total resources of $441,174. Bert Oabill "Journal of Commerce" of Dec. 28. The union gives Lansing a banking institution with resources of more than $20,000,000 was President. and makes the Capital National Bank the largest bank in 80 FINANCIAL CHRONICLE Michigan outside of Detroit and Grand Rapids. advices continuing said: The R. E. Olds is President and Frank Gorman, Vice-President. Three junior officers of the City National are being taken over by Capital National. With this transaction it is believed that the Lansing banking situation has been thoroughly readjusted and no further disturbances are expected. [VOL. 134. Effective Dec. 18 1931, the Roseau County National Bank at Roseau, Minn., was placed in voluntary liquidation. The institution, which was capitalized at $30,000, was absorbed by the First National Bank of Roseau. Coincident with the occupancy of its new 32-story bank The Oceana County Savings Bank at Hart, Mich., failed and office building on Dec. 21, The First National Bank of to open for business on Dec. 29, according to associated St. Paul, Minn., absorbed the State Savings Bank and the banking department of the First Trust Co. of that city. Press advices from Hart, which added: It listed assets of $515,000 and deposits of $361,000 in its last statement. The three-way consolidation has created a single depository which it is claimed is the largest bank in the Northwest. Closing of a small Kentucky bank, tile Boston Banking Co. A communication from the First National Bank also says: R. C. Lilly, President of The First National Bank of St. Paul, in comat Lebanon Junction, Bullitt County, was indicated in an menting on the concentration of deposits said, "since July 1930, the ownerAssociated Press dispatch from Frankfort, Ky., on Dec. 23, ship of the State Savings Bank had been the same as that of the First National and the savings bank was operated in the nature of a branch. which said in part: With the completion of our new building, the State Savings Bank was but a block from the First National, obviating any further need for the maintenance of separate organizations. "Consolidation of the banking department of the Trust Co. was also a natural evolution and has been contemplated for some time. It is designed to permit the Trust organization to speciaize in the fiduciary field of trust and estate supervision, at the same time The reopening of the Farmers' & Merchants' Bank of concentrating the deposit and discount banking in a single major institution. Greater efficiency in operation and in service to our customers, rather Fairview, W. Va., on Dec. 21 was reported in a dispatch by than the attainment of size, governed our decision." the Associated Press from Fairview on that date, which said Approximately $14,000,000 was added by the consolidation to the deposits of the First National, giving It a deposit total ranging from $105,000,000 in part: deposits total $29,000,000, representThe bank, which was solvent, closed its doors two months ago to protect to $110,000,000. Combined savings 74,000 individual accounts. Practically the entire deposits of the ing since have signed an agreeits depositors. Virtually all of the depositors accounts, while the total Trust ment to leave their funds in the bank from 12 to 24 months, making with- Savings Bank, $8,000,000, were in savings deposits, are divided nearly equally between savings and commercial drawals according to terms of the pact. New depositors will not be bound Co. Savings Bank will be added State accounts. The capital structure of the by the agreement. to the capital accounts of the First National, but the capital structure of the Trust Co. will not be affected, the National Bank taking over only Two Wilson, N.C., banks, tho First National Bank and those assets which offset deposits liability." The bank had capital of $15,000, surplus of $3,500 and total deposits approximating $48,250. B. S. Harned is President and H. E. Roby Cashier of the bank. This is the second bank to close at Lebanon Junction in the last two years and leaves the town without a bank. the Wilson Trust & Savings Bank (affiliated institutions) were reported closed on Dec. 30 in a dispatch by the AssoOn Dec. 1 1931, the First National Bank of Emhouse, ciated Press from that place on the date named. The ad- Tex., with capital of $40,000, was placed in voluntary vices went on to say: liquidation. It was taken over by the First National Bank They were closed by directors in order to protect depositors. The last of Corsicana, Tex. condition issued gave the First National's deposits as approxi- statements of mately $1,025,000 and the Wilson Trust & Savings Bank as $860,000. The Ballard First National Bank of Seattle, Wash., was The Beaufort Banking & Trst Co. of Beaufort, N. C., chartered by the Comptroller of the Currency on Dec. 22. was closed on Dec. 30, according to a dispatch by the The new bank has a capital of $100,000. J.P. Wall and R.A. Plummer are President and Cashier, respectively, of the Associated Press from Beaufort, which added: Its last statement gave deposits as $1,317,057. Last Sept. 29 it re- institution. ported deposits of $5,660,120. The First National Bank of Kelso, Wash., failed to open A dispatch by the Associated Press from Greensboro, on Dec. 23, according to a dispatch by the Associated Press N. C., on Dec. 30, stated that the United Bank & Trust from Kelso on that date, which went on to say: Co. of Greensboro, with branches at Burlington, Reidsville C. C. Basher, President, announced recent heavy withdrawals and and Sanford, did not open for business on that day. In a frozen loans caused the closing. Deposits as of the September statement were $569.000. The bank was capitalized at $100,000 and had undivided statement of condition as of last Sept. 29,the bank reported profits of $35,000. said. was it deposits of $5,660,120, Advices by the Associated Press from Portland, Ore., Four Wayne County, N. C., banking institutions were on Dec. 19, stated that the directors of the Hibernia Comreported closed in a dispatch from Goldsboro, N. C., on mercial & Savings Bank of Portland had announced on that Dec. 28, printed in the Raleigh "News and Observer" of day that the institution had been placed in the hands of the Dec. 29. The institutions named were the Wayne National State Superintendent of Banks for Oregon and would be Bank of Goldsboro; the First National Bank and the Citi- closed pending reorganization. We quote furthermore from zens' Bank, both of Mount Olive (leaving the town without the dispatch as follows: At the bank call last Sept.29 the Hibernia Bank had deposits of 36,529.896 banking facilities), and the Bank of Pikeville at Pikeville. and loans and discounts of $3,095,557. Capital was $500,000 and surplus The dispatch continuing said, in part: $100,000. None of the banks are related. Their combined deposits were given E. B. Ireland, speaking for the Portland Clearing House Association, $2,558,323.48. Issued a statement in which he said that "when assets of the bank have as Officials of the First National Bank said they hoped that, with agree- been satisfactorily appraised local banks will immediately offer to advance ment of depositors, the bank would be able to re-open in 10 or 12 days. suitable amounts against depositors' approved claims." Representatives of the other three said they had "hope and the belief The city of Portland had on deposit in the Hibernia Bank $90,094. that depositors would be paid." The Wayne National Bank is one of the largest in Eastern North CaroPortland, Ore., advices on Dec. 22 to the "Wall Street llna. Its directors voted yesterday (Dec.28)to close It and W.E.Straoud, Cashier, announced the cause was heavy withdrawals. The bank listed Journal," stated that the Hibernia Commercial & Savings deposits of $2,008,246 at last statement. F. It. Borden is President and Bank, of that city, had failed to open its doors for business W. E. Stroud, Cashier. Resources listed by the Wayne National Bank in its last statement Dec. 19 and the directors had turned the affairs of the instincluded its banking house and fixtures valued at $509,000. tution over to the State Superintendent of Banks. The last The Bank of Pikeville was capitalized at $20,000 and had a surplus bank call Sept. 29 1931, showed the institution had deposits of $5,500: the Citizens' Bank was capitalized at $50,000 and had a surplus of $50,000: the Wayne National Bank was capitalized at $350,000 of $6,529,896, capital of $500,000 and surplus and undivided and had a surplus of $100,000. profits of $265,631. Statements of the First National Bank gave its reources as $379,988.17, with a surplus and capital of $50,000 each. T. R. Thigpen is its President. Report of The Royal Bank of Canada (head office MonH. M. Cox is President of the Citizens' Bank. A notice was posted on the door of this bank and the Bank of Pikeville but the Wayne National treal) made public this week through the New York office Bank had issued no official statement. A charter was Issued on Dec.22 by the Comptroller of the Currency for the DeLay National Bank of Norfolk, Nob. The new institution is capitalized at $100,000. J. J. DeLay Is President and Paul Zutz, Cashier. On Dec. 7 1931 the State Bank of Sheboygan Falls, Wis., acquired the assets and assumed the deposit liabilities of the Falls Bank of that place,and the combined banks will operate under the name and charter of the State Bank of Sheboygan Falls. All business will be transacted in the State Bank Building. for the fiscal year ended Nov. 30 1931, reflects the relative Stability of conditions in the Dominion and the success with which Canadian banking institutions are dealing with the problems created by the depression. The bank, which is the largest in the Dominion, shows total assets of $825,702,437 as of Nov. 30, a reduction of only 7% as compared with the preceding year, while of this total $348,630,552 are described as liquid and represent 48% of liabilities to the public. Among the principal accounts included in these liquid assets are cash of $150,286,891, Dominion and Provincial securities of $85.473,058, and Canadian, municipal, British, foreign and colonial public securities of $24,641,816. Call loans totaled JAN. 2 1932.] FINANCIAL CHRONICLE • $76,293,380 at the end of the fiscal year, representing a substantial reduction for the year, those in Canada being down $18,847,955 or 33%, and those abroad showing a reduction of over $7,000,000. Commercial loans were $419,345,043 compared to $444,815,877 a year ago, while letters of credit also show a reduction (nearly $10,000,000) due to curtailment in international trade. Total deposits stood at $647,303,075 against $695,589,060, the decrease having been chiefly in deposits elsewhere than in Canada, those in the Dominion being down only $7,160,200, the total now amounting to $479,165,064 as compared to $486,325,264 a year ago. Sir Herbert S. Holt, President, in the letter to the bank's shareholders says: "The many shareholders of the bank will be particularly interested in the profit and lose account and the showing made should be regarded as very satisfactory. Profits for the year amounted to $5,448,327 and these, added to the amount brought forward from the preceding year, brought the total available for distribution up to $9,555,105. Payment of the usual 12% dividend absorbed $4,200,000; a contribution of $200,000 was made to Officers' Pension Fund; the usual amount of $400,000 was appropriated for bank premises and $600,000 was set aside for Dominion Government taxes. After meeting all these charges, the substantial amount of $4,155,105 was carried forward to credit of profit and loss for the next fiscal year." The Royal Bank of Canada maintains 880 branches in Canada and abroad, including: Montreal, London, Paris, Barcelona, Havana, Buenos Aires, Rio de Janeiro, Sao Paulo, Montevideo, Lima, Bogota, Panama, Caracas, Belize, Nassau, Porto Rico, Dominican Republic, Haiti, Martinique, Guadeloupe, Barbados, Dominica, Jamaica, St. Kitts, Trinidad, British Guiana, Costa Rica. The New York Agency is located at the corner of William and Cedar Streets. The agents are: Frederick T. Walker, John A. Beatson and Edward C. Holahan. At the regular meeting of the Directors of the Royal Bank of Canada on Dec. 22, A. J. Brown, K. C., and Morris W. Wilson were appointed Tice-Presidents of the institution, The Montreal "Gazette," reporting the appointments, said in part: Mr. Brown has been a member of the Board and chief counsel of the bank since 1912. He is senior partner of the firm of Brown, Montgomery & McMichael, barristers, Montreal; Vice-President, Montreal Trust Co., &c., &c. Mr. Wilson, heretofore Director and General Manager of the bank, will in future occupy the joint position of Vice-President and General Manager. He is also Director and a member of the executive committee of the Montreal Trust Co. The 57th annual report of the Banque Canadienne Nationale (head office, Montreal), covering the fiscal year ended Nov. 30 was recently issued. Net earnings, after the usual deductions, are shown in the report as $1,001,940, and this amount together with $178,229, the balance to credit profit and loss brought forward from the preceding fiscal year, made $1,180,169 available for distribution. This sum was allocated as follows: $700,000 to take care of four quarterly dividends; $40,000 contributed to pension fund; $110,000 to pay Dominion Government taxes, and $125,000 representing provision for payment to the Treasurer of the Province of Quebec under Statute 14 Geo. V. Ch. 3, leaving a balance of $205,169 to be carried forward to the current fiscal year's profit and loss account. The bank's total assets are shown in the statement at $150,210,247 (as compared with $147,244,122 the previous year, while total deposits are shown at $117,669,320. The institution's total liabilities to the shareholders (capital, rest fund, dividends and undivided profits) are given at $14,382,474. THE WEEK ON THE NEW YORK STOCK EXCHANGE. Quiet and irregular price movements have characteri zed the dealing on the New York Stock Exchange during the present abbreviated week. The trend, however, has been upward and while the advances were not especially noteworthy, there have been spurts in some of the more active issues that have carried them to higher levels. Brief periods of selling, mainly for tax purpose, have occurred from time to time and while the selling temporarily checked the gradual advance the daily closing quotations, with the possible exception of Monday, have been fractionally higher. The weekly statement of the Federal Reserve Bank of New York issued after the close of the market on Thursday showed a further decrease of $20,000,000 in brokers' loans in this district. Call money renewed at 3% on Monday, continued unchanged at that rate until Wednesday afternoon when it was advanced to 334%, remaining unchanged during the remainder of the week. Renewed selling pressure was the outstanding feature as the stock market resumed operation on Monday after the 81 three-day holiday, and while prices moved within a narrow range the changes were usually on the side of the decline. There appeared to be no special reason for the downward trend, but it was generally assumed that tax selling was an important factor in the unsettlement. Pivotal stocks like American Can, Westinghouse, Consolidated Gas and Amer. Tel & Tel. were down to the minimum. The main force of the selling was especially prominent in stocks that have been under pressure for several weeks past and the bulk of the day's trading piled up in these issues. The principal changes on the side of the decline were Air Reduction, 234 points 3 Atlantic Coast to 48; American Can, 234 points to 59/s; Line, 44 points to 264; Brooklyn Union Gas, 234 points to 723 %; Coca Cola, 2 points to 103; Delaware & Hudson, 34 points to 69; Eastman Kodak, 234 points to 7834; Standard Gas & Electric, 13 points to 264; McKeesport Tin, 33/ 4 Points to 454; Southern Pacific, 234 points to 2634; Lambert & Co., 234 points to 48; American Sugar, 2 points to 36, and Auburn Auto, 534 points to 12434. The trading continued unsettled to the close with the leaders off from 2 to 4 or more points. The market was somewhat stronger on Tuesday, particularly during the early trading and a number of the more active stocks improved their position from 2 to 4 or more points. Transactions were fairly heavy and totaled 2,439,895 shares, the heaviest turnover since Dec. 18, the dealings covering 887 separate issues. The best gains were recorded among the speculative favorites during the morning, but the late downward reaction brought most of them close to the final quotations of the preceding day. The outstanding gains included Air Reduction, 234 points to 5034; Allied Chemical & Dye, 2 points to 6734; Amer. Tel. & Tel., 23 points to 1154; Amer. Tobacco, 24 points to 6734; Auburn Auto,44 points to 1284; Delaware & Hudson, 3 points to 72; Eastman Kodak, 14 points to 8034; Norfolk & Western, 4 points to 119; Worthington Pump, 134 points to 1834, and United States Steel, 134 points to 38. At the close the market was steady and trading was quiet. On Wednesday prices were slightly higher in the early dealings though there was considerable irregularity apparent and the movements were within a comparatively narrow range. As the day advanced, the higher quotations of the early trading were largely cancelled, and while there was a slight rebound near the end of the session, the final quotations were not materially changed. The turnover totaled about 2,112,067 shares with a large part of the buying leaning toward the industrial group. Railroad shares moved around to a considerable extent, but in the end barely held their own. Specialties were weak and trading in this group was enlivened by the break in Eitington-Schild, Inc. 1st pref., which opened at 5234 and then slid rapidly downward to 12 with a net loss of 40 points. Among the changes recorded on the side of the advance were Allied Chemical & Dye 234 points to 69%, Amer. Tel. & Tel. 134 points to 117, Atchison 3 points to 6534, Auburn Auto 64 points to 135, Texas Pacific Ry. 234 points to 2534 and National Steel Corp. 234 points to 23. As the market closed, trading was moderately strong and active, and prices were slightly higher. The market again moved upward during the early trading on Thursday and while the transactions were of only moderate proportions, the gains ranged from fractions to 2 or more points. United States Steel common led the advance and reached 403 % at its top for the day, but lost part of its gain and closed at 385 %. Auburn Auto gained 5 points in the early trading, but lost it all and 4 additional points, closing at 131 with a net loss of 4 points. Eastman Kodak moved up 234 points to 824, and Texas Pacific closed with an overnight gain of 734 points. TRANSACTIONS AT THE NEW YORK STOCK EXCHANGE DAILY. WEEKLY AND YEARLY. Week Ended Dec. 31 1931 Stotts. Railroad Number of and Miscall. Municipal et Shares. Bonds. Fora Bonds. Saturday Monday Tuesday----Wednesday Thursday Total Sales at New York Stock Exchange. 2,003,040 2,439,895 2,112,067 1,508,700 $7,679,500 9,764,000 9,717,800 8,490,000 Total Bond Sates. $2,485,600 $13,912,100 2,610,500 17,101,500 3,303,500 18,273,800 4,961,000 14,256,000 8,063,702 $33,651,300 616,531,500 $13,360,600 $63,543,400 Week Ended Dec. 31. 1931. Stocks--/fo.ofehares. 8,089,702 Bonds. Government bonds.-- $13,360,600 State & foreign bonds. 16,531,500 Railroad & misc. bonds 33,651,300 Total bonds HOLIDAY $3,747,000 4,727,000 5,252,500 2,805,000 HOLIDAY United States Bonds. 1980. !an. I to Dec. 31. 1931. 1930. 13,478,510 730,866,171 738,965,651 $2,927,000 9,908,000 26,898,500 $296,118,050 908,455,600 1,846,034,700 $115,785,250 720,760,900 1,927.021,400 $63,543,400 $39,733,500 $3,050,608,350 $2,768,567,650 187.817 8130.800 10.023 321,000 Prey. week revised 147,438 874 000 168 605 8193,100 a In addition, Wee Of warrants were: Wednesday, 200. 8.196 814,200 Total 153,695 $125.500 THE CURB EXCHANGE. Prices for Curb securities resumed their downward course with the opening of this week's business on Monday,though later a strong demand for stocks caused an upward movement and the week closed with better prices prevailing. Utility issues were active. Amer. Cities Power & Light, class A eased off at first from 22 to 19% and recovered 3 % finally to 25. Amer. Gas & Elec., cora, declined from 37 Amer. 7 35. at to-day closed to 34%, rose to 39%, and Superpower, prior pref. weakened from 53 to 51%, then sold up to 58. Commonwealth-Edison advanced from 115 to 118%. Electric Bond & Share, corn. gained about 2 points to 11%, and receded finally to 103j. Northern States Power, com. sold up from 70 to 80% and finished to-day at 79. Among oil shares, Humble Oil & Refg. lost a point to 443 and recovered finally to 45. South Penn Oil sold up from 9% to 13. Standard Oil (Ind.) weakened from 143 %, the close to-day being at 143. to 133', then rose to 143 Standard Oil (Ohio), coin. improved from 25 to 28. Gulf Oil sold down from 26% to 25%,then up to 27 with the final figure to-day 26%. Among industrial and miscellaneous issues, Aluminum Co. weakened from 52 to 49%, then sold up to 57, the close to-day being at 543'2. The preferred •gained 6 points to 63. Ford of Canada, class B, after early decline from 153i1 to 13%,ran up to 19%. General Empire .Corp. advanced from 12 to 17. Glen Alden Coal moved down from 22% to 20%. Parker Rust Proof sold up from 353. to 38%. Singer Mfg. dropped from 125 to 117, recovered all the loss and sold finally at 122. A complete record of Curb Exchange transactions for the will be found on page 117. DAILY TRANSACTIONS AT THE NEW YORK CURB EXCHANGE. Week Ended Dec. 31 1931 Saturday Monday Tuesday. Wednesday Thursday Friday Total Saks al New York Curb Eschangs. Stale (Number of Shares). Bonds (Par Foreign Domestic. GOIST1181818 Corporals. 447,053 82,728,000 593.737 3,802.000 751,713 4,120,000 510,831 3,521,000 HOLIDAY $170,000 211,000 218,006 208,000 HOLIDAY 2,303,334 $14,171,000 $807,000 Week Ended Dee. 31. 1931. vans.), POreka 1930. 3,043,400 Stooks-No.of shares. 2,303,334 Bonds. $14,171,000 811,990,000 Domestic 1,843,000 807,000 Foreign Government-733,000 558,000 Foreign eorDerate $14.568.000I $15,536,000 Total Total. $54,000 82,952,000 158,000 4,171,000 182,000 4,520,000 164,000 3,893,000 $558,000 $15,536,000 Jan. 1 so Dec. 31. 1931. 1930. 110,349,385 251,996,693 $907,018,000 32,658,000 40,219,000 $348,803,000 40,225,000 39,645,000 $979,895,000 3928,673,000 . THE ENGLISH GOLD AND SILVER MARKETS of circular weekly the from following the We reprint of date under written London, of Co. & Samuel Montagu Dec. 16 1931: GOLD. £24,117,670 £12,026,826 The Transvaal gold output for the month of November last amounted to 900,510 fine ounces, as compared with 945.113 fine ounces for October 1931 and 889,753 fine ounces for November 1930. SILVER. Prices have continued to fluctuate under the influence of sterling exchange and of speculative operations but business has again been on rather a small scale. America has sent fairly persistent buying orders for forward delivery but has been inclined to offer spot, and yesterday the premium on forward delivery widened to Md. To-day. however . the premium is again 3-16d. China and the Continent have both bought and sold moderately, but operators in general are still showing hesitation. Advices from the Far East reflect only in comparatively small degree recent developments in China and Japan, and the ultimate effect, if any upon the price of silver, of the Japanese decree of the 13th inst. placing an embargo upon the export of gold, is awaited with interest. The following were the United Kingdom imports and exports of silver inst.: registered from mid-day on the 7th inst.. to mid-day on the 14th Exports. Imports. E55,650 Germany £143,286 United States 45,812 28,130 British India Egypt 8.358 17,094 Other countries Other countries £109,820 £188,510 Quotations during the week: IN NEW YORK. IN LONDON. (Cents per fine ounce. .999) Bar Silver per Oz., Standard. 2 Mos. Cash. 29 203-16d. 20d. Dec. 9 Dec. 10 29 Dec. 10 207-16d. 2054d. Dec. 11 30 Dec. 11 20 1-16d. 20 d. Dec. 12 30 Dec. 12 20d 13-16d. 19 Dec. 14 30M 20Md. Dec. 14 19Id. Dec. 15 31M 207-186. Dec. 15 20 d. Dec. 16 20.302d. 20. 04d. Average The highest rate of exchange recorded on New York during the period from the 10th to the 16th inst. was $3.49 and the lowest $3.29. INDIAN CURRENCY RETURNS. Nov.22. Nov.30. Dec. 7. (In Lacs of Rupees) 16289 16236 16550 Notes In circulation 12989 12936 12857 Sliver coin and bullion in India 448 448 456 Gold coin and bullion in India 2852 2852 3237 (Indian Securities Government) of about 57.000,000 The stocks in Shanghai on the 12th inst. consisted silver bars, as compared ounces in sycee, 165,000,000 dollars and 5,360 on the with about 58,800,000 ounces in sycee and 165,000,000 dollars 5th instant. COURSE OF BANK CLEARINGS. Bank clearings this week will again show a decrease as compared with a year ago. Preliminary figures compiled by us, based upon telegraphic advices from the chief cities of the country, indicate that for the week ended to-day (Saturday, Jan. 2), bank exchanges for all the cities of the United States from which it is possible to obtain weekly returns will be 46.5% below those for the corresponding week last year. Our preliminary total stands at $5,618,153,625, against $10,505,415,361 for the same week in 1930. At this center there is a loss for the five days ended Friday of 48.9%. Our comparative summary for the week follows: Clearings-Returns by Telegraph. Week Ending Jan. 2. 1932. 1931. Per Cent. 1 iLli au'ii Saturday.-N.onday Tuesday WednesdaY Thursday Friday Bean:sore. Boston. Philadelphia. norm BondBites. Shares. !Bond Sales. Itharei. 'Bond Balm. HOU DAY 110LI DAY HOU DAY 2,1241 50,100 $42,000 48,184: 845,000 3.804 314,000 24.800 44,577 77,500 59,9351 4,000 2,939, 61,000 54,104 5,000 a76,8881 3,000 1,156' 2.810 1 000 HOLI DAY HOLIDAY 161.1 DAY United Kingdom imports and exports of gold for the month of November last are detailed below: Exports. Imports. £.0,662 £11,097 Germany 529,000 Sweden 3.590,824 265,775 Netherlands 17,590 Belgium 16,513,538 4.673 France 2,689,042 Switzerland 85.777 West Africa 1,138.168 24,262 United States 179,060 Brazil Union of South Africa (including South-West 3,865,272 Africa Territory) 196,017 Rhodesia 6,433,004 British India 57.558 Straits Settlements and dependencies 297.647 Australia 61,936 New Zealand 157,411 16,183 Other countries ot,1 ot-i.t.c-%oo 66;,,C.,:a. :P.67:Dt4O56;ID DAILY TRANSACTIONS AT THE BOSTON. PHILADELPHIA AND BALTIMORE EXCHANGES. Week Ended Dec.31 1931. [VoL. 134. FINANCIAL CHRONICLE 82 11,836,926 £4,188,239 ltbi Uti , 32,639,560.304 35,160,677.679 New York 384.614,314 187,727,679 Chicago 401,000,000 194.000.000 Philadelphia 331,000.000 173,000,000 Boston 88,080,486 48,399.918 Kansas City 101,100,000 53,100,000 St. Louis £120,712.to amounted notes 121,791,000 78,700,000 against Francisco The Bank of England gold reserve £120,711,125 on the previous San No longer will re port clearings. Los Angeles 162 on the 9th inst., as compared with .130,000.000 74.907,520 Pittsburgh Wednesday. "Naldera" 8.8. the by 138,568,127 India 64,301,616 from Detroit About .£1,800,000 in bar gold arrived and sold forward been 91,003,269 had amount 56,555,699 this of bulk the Cleveland but on Friday last, together market open 66,900,901 the in disposal 49,811,347 for Baltimore only a small balance was availablesources. 28,227.914 21,682,828 with small supplies from outside gold shipments from India and a large New Orleans There is no diminution in the " sailing from Bombay 33,641,746.981 37,042,968,690 -48.3 days five cities, Twelve amount has been engaged for the S.S. "Strathnaver in arrive is due to 878.366.081 -29.0 623,881,040 this week. On the 25th inst., the 5.13. "Mooltan" Jan. 1 1932 the Other cities, live days London from Bombay with £1.800.000 bar gold and on -46.1 37,921.334.771 $4.265,123,021 Total all cities, five days SS."Viceroy of India with £3,300,000. 2,584.080.590 -47.6 1.353,025,604 All cities, one day Quotations during the week: Value Equivalent Fine Per of £ Sterling. sit eta iss 625 310.505.415.361 -46.5 Ounce. m......, ell .1.11.2 folv wool, 13s. 6.8d. 125s. 3d. Dec. 10 the 7.1d. 1:3s. 125s. Complete and exact details for the week covered by Dec. 11 13s. 10.1d. 122s. 9d. We cannot week. next Dec. 12 of *ssue our in 3.7d. appear 14s. will 9d. foregoing 118s. Dec. 14 14s. 3.2d. the week ends to-day 119s. id. Dec. 15 14s. 2.5d. furnish them to-day, inasmuch as 119s. 7d. Dec. 16 11.6d. 13s. 121s. 8.8d. the Saturday figures will not be available and Average (Saturday) gold the above the last day The following were the United Kingdom imports and exports ofinst.: until noon to-day. Accordingly, in registered from mid-day on the 7th inst. to mid-day on the 14th Exports. week has to be in all cases estimated. the of Imports. £2,364,882 however, which we £892.850 Switzerland British South Africa 999.119 In the elaborate detailed statement, 790.334 Prance British India final and complete give 17.000 to able are we below, 51,250 Belgium further Netherlands 324,714 present 30.211 Netherlands United States 49,021 results for the week previous-the week ended Dec. 26. 19,860 Germany New Zealand 322,933 23,967 United States Kenya 32.200 For that week there is a decrease of 28.1%, the aggregate of Austria ,• Straits Settlements and 17.500 11.662 Czechoslovakia being $5,347,349,111, against . dependendes 10.870 clearings for the whole country 16,792 Other countries Other countries $7,433,955,411 in the same week of 1930. Outside of this JAN. 2 1932.] FINANCIAL CHRONICLE -city there is a decrease of 30.1%, the bank clearings at this -center recording a loss of 27.9%. We group the cities now according to the Federal Reserve Districts in which they are located, and from this it appears that in the New York Reserve District, including this city, there is a loss of 26.7%, in the Boston Reserve District of 17.8%, and in the Philadelphia Reserve District of 37.4%. The Cleveland Reserve District suffers a contraction of 34.4%, the Richmond Reserve District of 35.2% and the Atlanta Reserve District of 23.3%. In the Chicago Reserve District the totals are smaller by 37.9%, in the St. Louis Reserve District by 28.1% and in the Minneapolis Reserve District by 18.2%. In the Kansas City Reserve District the decrease is 27.7%, in the Dallas Reserve District 16.7% and in the San Francisco Reserve District 23.8%. In the following we furnish a summary of Federal Reserve _districts: SUMMARY OF BANK CLEARINGS. Irse.or 1931. 1930. Dec. 1929. 1928. Federal Reserve Dist. let Boston, .12 cities 272,439,412 431,539,701 331.256,995 -17.8 479,915,923 2nd New York_12 " 3,5442,331,510 4,830,533,956 6.075,094,427 7.357,835,273 ltd Philadelphial0 " 270,909,995 432,615.487 -37.4 606,957,910 589,645,275 4th Cleveland_ 8 " 326,431,782 --34.4 214,001.434 375,656,365 395,859,829 lith Richmond _ 6 " 81,580,627 125,877,248 -35.2 148,023,572 155,127,075 6th A Mids....11 " 117,999.426 90,464,998 149,706,369 165,608,643 7th Chicago. .20 " 381.521822 614,198.578 --37.9 806,296,107 995,015.068 8th St. Louis133,860.380 --28.1 " 96.248,126 182,098,485 200,435,172 965 Minneapolis 7 " 72,279,849 88,371 848 --18.2 110,247,914 112,971,471 10th KansasCitY 10 " 146,458,491 --27.7 105,829,341 173,833.961 160,293,558 Ilth Demo 49,246.857 --16.7 41,042,648 82.937,577 78,011,099 12th San Fran...14 " 237,104,493 180,697,351 313,814,34 319,614,436 'Week Ended Dec. 26 1931. Total 122 131%106 ()utaide N. Y. City Canada 5,347,349,111 1,905,832,375 7,433,955,411 28.1 2,727.694,854 -30.1 282,494.216 288,600,656 +1.3 32 cities 9.156.206,729 11,030,332,818 3,238.717,7501 3,815,215,871 449,668,946. 402,211,318 We now add our detailed statement, showing last week's figures for each city separately, for the four years: Week Ended Dec. 26. Clearings al1931. 1930. First Federal Reserve 821st act-Boston Alaine-Bangor_ 477.212 471,349 Portland 2.097,862 2.643.854 Meas.-Beaton 237,000,000 294.092,910 Fall River 717.930 750,815 Lowell 188,601 412,132 New Bedford._ 617,007 614,730 Springfield. - 3,281,721 3,578,994 1.978,448 Worcester 2,372,697 Conn.- Hartford 10.160,787 10.408,589 New Haven_ _ 6,109,586 6,242,844 R. I.-Providence 9,221.600 9,209,900 N.H.-Mancherer 588,808 458,071 Total (12 Cities) 272,439,412 Inc. or Doe. 1929. 1928. +1.2 -20.6 -19.4 -4.4 -54.2 +0.4 -8.3 -16.6 -2.4 -2.1 -0.1 +28.5 463,716 2,384,086 386.197,410 1,116.219 1,006,994 1,393,713 3,665.694 2.594.793 12,311,591 8,640.435 12,708,500 556,570 567,803 3,043,928 431,000,000 1,162,677 1,046,700 916.265 4.663,647 2,967,559 14,838,605 6,470.718 12,675,800 592,216 331,256,885 -17.8 431,539,701 479,915,923 Second Feder al Reserve D istrict-New N.Y.-Albany.3,505,060 4,404.758 Binghamton-638,043 847,814 Buffalo 25,345,046 35,446,924 Elmira 747,782 882,747 Jamestown..- _ 504,651 828,689 New York_ - - 3,441.516,736 4,703.260.587 Rochester 7.022.379 8,794.764 Syracuse 3,170.649 4,812,296 Conn.-Stamford 3,542,002 4,290,512 N. J.-Montolair 397,000 532,320 Newark 21,723,310 32,637,157 Northern N..7.. _ 32,218,846 31.255,488 York --20.4 4,549,854 5,045,878 --24.7 800,167 994,422 --28.6 46,594,382 47.778,504 --15.3 584,704 955,887 --39.1 949,185 1,681,055 --26.9 5,917,488,979 7,212,113,947 --20.2 11.636,310 11,997,090 ---26.5 4.970,613 5,055.438 --17.4 4,071,467 3,996,452 --25.4 609,025 7.787,128 --33.4 38.009,447 26.235,014 44,830,294 41,164,458 +3.1 83 Week Ended Nos. 26. Clearings at 1931. 1930. Inc. or Dec. 1929. 1928. $ $ Seventh Feder at Reserve D istrict-Chi cago-Mich.-Adrian 127,523 184,252 7-30.8 194.229 203,820 Ann Arbor_ _ _ _ 514.910 536,110 --4.0 554.477 759,838 Detroit 86,881,589 119,475,400 --27.3 170.084.643 207,511,783 2,873,729 4.330,241 Grand Rapids_ 4.482,849 7,753,051 1,239,000 1.794,868 --31.0 Lansing 2.224.333 .2,552.857 Ind.-Ft. Wayne 2,345,068 --41.4 1,374,024 3,297,366 3,557,905 Indianapolis 14,030,000 --18.2 11,478,000 20,218,000 20,574,000 1,563,732 1,727,962 South Bend... 3.252.387 3,165.800 3,124,675 3,883,891 -19.6 Terre Haute... 4,600,147 5,176.601 19,857,204 -22.0 15,486,718 Wis.-Milwaukee 26,469,466 27,418,074 2,514,356 -32.8 Iowa-Cedar Rail 688,671 2,538,789 2,422,101 Des Moines... 8.105.753 4,461,852 5,504.679 -18.9 7.728.461 Sioux City 2,914,060 -16.7 2,428,594 5,161,332 5,618,947 Waterloo 1,169.470 418,831 555,696 -25.0 1,156,838 III.-Bloomingt'n 1.210,902 -30.8 1,287.423 837,415 1,414.778 Chicago 242,446,680 425,383.255 -43.0 541,950,383 647,008,195 Decatur 871,069 --33.0 583,289 981,897 1,086,987 2,830,713 -21.9 Peoria 2,212,218 4,277,533 4,308,156 Rockford 2,387.518 -49.8 1,198,045 3,061.175 3,173,440 1.861,314 Springfield.... -14.8 2,384.253 1.586,327 2,424.661 Total(20 cities) 381,523,822 614,198,578 -37.9 806.296,107 Eighth Federa I Reserve Die trIct-St.Lo uisInd.-Evansville. 3.074,937 -15.4 2,601.780 Mo.-St.Louis.. 64.100.000 99,400.000 -35.5 18.602,751 -8.0 17,483,138 _ Owensboro._ 321,945 -35.1 209,011 Tenn.-Memphis 11,811,173 -5.3 11,188,497 III.-Jacksonville 138,629 -22.2 107,850 Quincy 510.945 +9.2 557,850 995,015,068 4,269,248 125,900,000 29.658,841 472,552 19,980.308 638,821 1,198,715 5,136,721 131.300.000 36.875.016 411,572 25.287.509 304,581 1,119,774 182.098,485 200.435,172 Ninth Federal Reserve Dia trIct-Minn espolisMinn.-Duluth.. 6,107.035 5,558,774 5,787,916 -4.0 Minneapolis... 45,619,923 7280:850899:421167 59,425,148 -23. St. Paul 16,390,603 17,374,430 2-5.7 N. Dak.-Fargo. 1,507,581 1,725.020 1,597,977 -8.7 S. D.-Aberdeen 963,184 578.477 894,265 -35.8 Mont.-Billings. 499,414 334,784 547.371 -38.8 Helena 2,289,704 2,744,743 -16.6 3,545.718 5,620.540 72,721,558 27,740.632 1.589.783 1,041,725 629,233 3.628.000 Total(7 cities). Total(7 Cities). 96,248,128 133,860.380 -28.1 88.371,848 -18.2 110,247.914 112,971,471 Tenth Federal Reserve Die evict-Kane as City Neb.-Fremont,. 279,718 -52.9 131,648 Hastings 359,609 -58.1 150,737 Lincoln 1,932,148 2,328,825 -16.9 Omaha 23,757.829 33,565,528 -29.2 Kan.-Topeka 3,061,317 8,210,290 -4.13 Wichita 3.838,837 5,451.654 -29.6 Mo.-Kan. City. 68,424,048 95,182,691 -28.1 St. Joseph..._ 2.868.191 4,122.541 -30.4 Col.-Col. Elfds. 669.095 845,371 -20.9 Pueblo 1,134.364 -12.1 997,491 288,471 425.018 2.847.771 34,665,952 3,192,688 6,739,000 117,871,336 5,201.253 1,092.770 1,609,802 278.678 481,272 3,396.291 35.070,984 3,484,815 7.885,881 121,413,871 6,924.617 1,073,253 1,304,316 146,458,4911 -27.7 173.833,961 180,293,568 Eleventh Fede ral Reserve Dlstrict-Da/11as-Texas-Austin _902,358 1,181,926 -23.7 Dallas 29.262,480 34,920.765 -18.2 Fort Worth... 6.705.684 6,952.959 -3.6 Galveston-2,081.000 2.913,000 -2.9 La.-Shreveport. 2,091,124 3,278,217 -38.2 1.005.753 57,213.078 12,722,634 *7,000,000 4.998.112 1,500,332 51,537,890 13,233,182 6.821.000 4,919.165 82,937.577 78.011,099 Franc,sco-36.147.924 -E3.6 -28.9 10,793,000 -42.9 1.442,601 -27.4 31,731,026 -31.5 19.921,526 -33.0 6.896.743 -26.7 4,581,372 +112. 5.120.026 -19.2 5,924,262 -24.8 183,588,823 -18.2 2,539,879 -40.1 1,500.000 -40.9 1.568,854 -1.7 2,008,500 41,506,616 11.599.000 1,249,994 31,001,036 19.087,084 7,253,729 8,030,148 4,820,711 4,976,935 184,839,446 2.384,868 1,421,065 1,599,805 1,844,000 Total(10 cities) Total(5 cities)_ 72,279.849 105,829,341 41,042.646 49,246,867 -16.7 Twelfth Feder al Reserve D istrict-San Wash.-Seattle20,842,73 29.201.397 Spokane 6,051,000 8,514.000 Yakima 477.400 850.480 Ore.-Portland.. 19,1142,192 26,213.513 Utah-S. L. City 11,056,629 18,142,353 Cal.-Long Beach 3,549.808 5.721,503 Pasadena 3.021.738 4,124.032 Sacramento _ 10,012,093 4,718,873 San Diego._ _ 3,484,124 4,313,022 San Francisco_ 98,184,109 130,612,997 San Jose 1.700.337 2,078,617 Santa Barbara. 1,010,188 1,685,016 Santa Monica. 926,936 1,667,660 Stockton 1,338,064 1,361.000 Total (14 cities) 180,697,351 237,104,493 -23.8 313,814,341 Total(12 cities) 3,540,331,510 4,830,533,956 -26.7 6,075.094,427 319,614,436 7,357,835,273 Grand total (122 cities) 5,347,349,111 7,433,955,441 -28.1 9.156.208,729 11030 332,818 Third Federal Reserve Dist tict-PhIlad elphia Pa.-Altoona _ _ 480.565 1,048,727 -54.2 1,221,965 1,234,940 Outside New York 1,995,832,375 2,727,694,854 -30.1 3,238,717.750 3.818,218,871 Bethlehem_ 2.805,444 8,914,796 -28.3 3,248,873 3,728,803 Chester 738,459 749,496 1.5 911,711 1,083,318 Lancaster 1.592,247 1,372.379 +16.0 1,190,894 1,472,434 253,000,000 412,000,000 +38.6 584.000,000 563,000.000 Week Ended Dec. 24. Reading 1.987,848 Clearings ad2,418,283 -17.8 2,996,570 3,738,325 Scranton 3,147,730 3,574.059 -11.9 Inc. or 4.412,938 5,187,988 Wilkes-Barre., 1,813,303 2,366,634 -23.4 1931. Dec. 1930. 1929. 2,934,030 1928. 3,673,571 York 1,237,894 1,591,113 -22.2 1.685,995 1.796,292 N.J.-Trenton.4,107,000 Canada3 3,530.000 +14.7 4.354.834 $ $ $ % 4.751,604 Montreal 91,619,344 90,680,673 +1.0 161,285,013 116.856,426 Total(10 cities) 270,909,995 432,615.487 85,942,288 91,933.178 -8.5 130.860.062 134,198,913 -37.4 606,957,910 539.645,275 Toronto Winnipeg 44,764,792 59.100,030 32,245,309 +38.8 55.715.161 Fourth Feder al Reserve D Istrict--Clev eland Vancouver 14,893,313 21,947,448 15,075,335 -1.2 18.681,511 Ohio-Akron..., d323,000 Ottawa 3.589,000 -91.0 6,439,076 -1.3 6,353.443 7,703.289 7.405,755 3,998,000 6,314,000 Quebec Canton 3.006.085 -5.1 5,046,992 5,320,916 7,244,482 6.468,673 3,874,780 3,606.067 Cincinnati 41,751,262 49.136,976 -15.3 Halifax 2,589,075 -11.0 2,910,450 3.516.515 3.187,147 59.219.168 68,232,821 Cleveland 72,355.571 95,567.474 -24.3 120,928,764 124,136.942 Hamilton 4,415,822 4,614,340 -4.3 0,804,573 5,252.680 Columbus -_ _ 8,014,700 11,128.100 -27.9 Calgary 8,793,402 -24.7 5,621,368 13.345,663 13,262,017 15,354,000 14,843,200 St. Mansfield 1,166,197 John +8.9 1,999.401 2,653,491 2.137,616 1,348,128 2,716,989 1.582,834 Youngstown Victoria 3,451,270 2,037.086 -14.9 1,734,524 2,470.875 4,781.069 2,286,076 5,672,803 London Pa.-Pittsburgh 91,576,901 159.386,880 -42.5 168,152,456 3,260,416 2,837,244 +14.9 3.113,408 2,977,275 171,471,168 Edmonton 4,727,203 4,510.108 +4.8 6,103,720 6,760,683 Total(8 elided)- 214,001,434 326,431,782 -34.4 4,039.408 -13.8 Regina 3,481,267 5,500,000 375.858,365 395.859.825 5.585,972 Brandon 392,120 427,757 -8.8 587,960 881,135 Fifth Federal Reserve Dist rict-Richm ond446,213 434,895 +2.6 Lethbridge 773.048 897,758 W.Va.-Hunt'on 465.994 Saskatoon 1,436,788 1,801,679 900.309 -48.2 -20.3 2,825,095 922,143 2,626,870 970,144 Va.-Norfolk...2,196.180 3.436,183 -38.1 730,141 Moose Jaw 821,636 -11.1 1,300,557 4,115,000 1.391,455 4,451,945 Brantford Richmond-19,730,008 1,030.664 1,032.464 -0.2 31,182,000 -36.7 1,463.070 39,674,000 1,246,538 42,734,000 Fort B.C.-Charieston *1,000,000 William.. _ 850,632 +11.8 727.698 1.434,100 -30.3 1,161,187 1.973.566 967,187 1,712,628 Md.-Baltimore 39,659.401 571,284 645,330 -11.5 Westminster 69.099,137 -42.6 1,090,300 80,490,229 760,461 82.858,985 New C.-Waahlon 266.676 257.115 +3.7 18,520,044 Medicine Hat... 19,825,489 -6.5 470.897 20.848,634 628.553 22,599.873 Peterborough.. 819.394 882.915 -7.2 .. 1,200.000 1,120,822 Total(6 cities). 703,552 657.735 +7.0 81,580.627 125,877,248 -35.2 148.023,572 155,127.075 Sherbrooke 900,252 927,232 1,172.558 1,168.306 +0.4 Kitchener 1,492,252 1,234,362 Sisth Federal Reserve Dist rict- Atilt nt a-2,695,420 Windsor 2,620,129 +2.9 5,175.824 4,813,182 Tenn.-Knoxville 354,366 325,834 Prince Albert 2,913,451 +8.7 *1.500,000 +94.2 450.000 2,609,000 472.986 2,483,794 Nashville 851,138 680,930 +25.0 9,327.240 1,118,741 14,355.346 --35.0 934,232 18.548.496 20.334,913 Moncton 881,332 729,790 --6.6 Kingston 25,500,000 38.273.433 --33.4 800,000 44.311,251 786,865 52,514.097 Chatham Augusta 707,411 844,143 939.631 +9.8 877,237 1,408,026 --33.3 1,992,193 836,461 2,046,856 Sarnia Macon 615,372 636.143 -3.3 903.924 700,000 1,092,991 --17.3 723,071 1,890.040 1.482,885 619.115 782,880 -20.9 9,879,427 11,085.231 ---10.7 13,500,000 14,540,138 Sudbury Ala.-B1rm'ham _ 10,213.779 13.173,658 --22.5 20.779,653 20,996,953 Mobile Total (32016189) 292,494,216 288,600.656 +1.3 449.668.946 402,211.818 936.219 1,432,329 --34.6 1,619.882 1.770,439 Miss.-Jackson.936.000 1,438,000 --34.9 1.377.000 2.109,512 Vicksburg 92,291 136.747 --32.5 169.286 420.979 • Estimated. a No longer reports week y clearings. b La.-NewOrleane 28,823,036 Remaining banks 34,123,667 --15.6 42,909.568 46,927.577 exchanging checks direct, no clearings figures available. c Three large closed. clearing Total(11 cities) house not functioning. d Figures smaller due to merger ofbanks 90.464.998 117.999.426 -23.3 149.706,389 165.608.643 two largest banks. a Clearing house discontinued. FINANCIAL CHRONICLE 84 ENGLISH FINANCIAL MARKET-PER CABLE. The daily closing quotations for securities, &c., at London, as reported by cable, have been as follows the past week: Sat., Mon., Dec. 26. Dec. 28. 20d. Silver, per oz._ 120s. 8d. Gold, p.fine oz. 543( COLLSOla,2%%. British, 5%_HOLIDAY 9514 92 British, 4Si%. French Rentes (in Faris) 3% 79.10 francs French War L'n (in Paris)5% 100.20 francs Fri.; Thurs., Wed., Tues., Jan. 1. Dec. 29. Dec. 30. Dec. 31. 203-16d. 20d. 20d. 120s, 8d. 1218. 11d. 120s. 5514 54% 54% 7 HOLIDAY 954 9514 9514 93 9214 92% 78.40 79.90 79.20 100.40 100.60 100.60 The price of silver in New York on the same days has been: Silver in N.Y., per oz. (eta.) 3014 3014 3014 3014 [VOL. 134. 30,000 Dec. 24-The First National Bank of Emhouse, Tex Effective Dec. 1 1931. Liq. Agents: J. N. Garitty and W.E. Harrington, care of the liquidating bank. Absorbed by the First National Bank of Corsicana, Tex., No. 3506. 500,000 Dec. 24-The Lincoln National Bank of Passaic, N. J Effective Dec. 16 1931. Liq. Agent, Peoples Bank & Trust Co. of Passaic, N. J. Absorbed by Peoples Bank & Trust Co. of Passaic. N. J. Capital. CHARTERS ISSUED. 6176,000 Dec. 19-The National Bank of Logansport. Ind President, W.A. Dentston, Cashier, E. H. Moss. Dec. 22-Ballard First National Bank of Seattle, Washington- 100.000 President, J. P. Wall, Cashier, R. A. Plummer. 100,000 Dec. 22-The DeLay National Bank of Norfolk, NebPresident, J. J. DeLay, Cashier, Paul Zutz. 25,000 Dec. 22-Montour National Bank in Montour Falls, N.Y President, Chas. M. Weed, Cashier. Belle P. Cornell. St. Louis Stock Exchange.-Reeord of transactions at St. Louis Stock Exchange, Dec. 26 to Dec. 31: Sales Thurs. PRICES ON PARIS BOURSE. Last Week's Range for Range Since Jan. 1. Quotations of representative stocks on the Paris Bourse ofPrices. Sale Week. been Low. Par. High. High. Low. Shares Price. have week Stocks-. past the as received by cable each day of as follows: Trust & Bank Dec. 26 Dec. 28 Dec. 29 Dec. 30 Dec. 31 Jan. 1 Mar 123 40 40 Dec 70 4014 First National Bank_---20 40 1931. 1931. 1931. 1931. 1931. 1932. Jan 424 105 105 113 Dec 198 Merc-Com Bk Sz Tr 00 100 105 Francs. Francs. Francs. Francs. Francs. Francs. St Louis Union Trust (new) Dec 75 Dee 65 99 65 65 11,100 10,900 11,100 10,800 Bank of France 60 60 55 Bank Nationale de Credit Miscellaneous1,050 1,070 1,110 1,090 Dec 45 July 34 563 33 33 Banque de Paris at Pays Bas 100 Brown Shoe corn 310 300 300 305 Mar Dec 890 3 1 Banquede Union Parleienne 134 1% Consol Lead & Zino A.. • 317 309 315 Dec 1714 Jan 7 7 275 7 Canadian Pacific corn Curtis Mfg 5 12,000 12,100 12,100 93.6 Dec 18 400 Aug 934 934 Canal de Sues Mfg __• Fred 934 corn_ Medart 2,020 2,019 2,101 1,665 15c Dec 1.00 Aug 15c 20c Cie Distr d'ElectrIedtle Fulton Iron Works com • 1,900 1,920 1,970 1,910 Dec 222 5 1 Feb 1 1 Cie General d'Electrieftle 100 Preferred 490 490 480 7 2 Feb Dec 875 2 2 Citroen B Hamilton-Brown Shoe25 1,010 1.020 980 1,010 Dee 5 July 400 134 Comptoir Nationale d'Eseompte 134 134 • Hussman-Ligonier 260 260 270 250 Apr Dec 20 8 100 8 8 Coty, Inc Brk Pr 8 com.100 Hydraulic 380 380 380 550 3614 Dec 53 July • gam 3614 3034 Courrieres Internet Shoe com 615 610 610 Jan Dec 37 100 19 19 Credit Commerciale de France_. 19 • Shoe Johnson-S-0 4,250 4,290 4,340 4:556 Jan 874 Dec 25 100 CreditFonder de France 834 834 • Hey Boiler Equips 1,530 1,540 1,550 1,540 Mar 50 1234 Dec 35 Credit Lyonnais 1234 1234 20 Laclede Steel Co 1,980 1,950 2,040 1,940 Dec 3934 Aug 238 30 Distribution d'Eleotricitis la Par 30 3034 • meguay-Norris 1,000 1,910 1,960 1,940 Dec 634 Mar 3 50 3 Eaux Lyonnais 3 Marathon Shoe corn. _25 _ 578 570 560 Mar Dec 22 8 Energie Electrique du Nord 8 834 1,400 • Nat Candy com 834 870 871 870 Mar 2 350 50o Dee 50c Energie Electrique du Littoral50c Nicholas Beaziey Airplane5 "jai 97 oo 85 Jan Dec 834 3 2,235 French Line 334 334 314 Rice-Stix Dry Gds cam__.* 81 77 81 78 Dec 9234 Jan 3,900 70 70 Gales Lafayette 70 1st 100 preferred 710 700 700 700 Feb Dec 82 85 80 60 Gas Le Bon 60 2nd 100 preferred 300 290 300 290 834 Sept Dec 7 300 2 2 Kuhlmann 520 HOLI- Scruggs-V-B D 0com--_25 520 420 500 Jan HOLI9 114 Dec L'Air Ma tilde 134 114 3,179 • 134 Scullin Steel pref DAY 1,170 1,170 1,170 DAY Sept 12334 Dec 110 37 111 Lyon (P. L. M.) 111 111 pref_100 Tel Bell Southwest 370 360 370 360 July Dec 1534 9 350 Courrleres de Mines 9 9 9 Stix Baer dr Fuller com_* 400 400 380 390 Mar (iU Dec 19 634 734 4,170 Mines des Lens Wagner Electric corn._ _100 7 1,470 1,520 1,550 1,550 Nord Ry 1,340 1,330 1,250 1,270 Paris, France Street Ry Bonds 94 96 95 Apr Paths Capital 06t1 9614 4.000 9634 July 98 E St Lants As RIM rn F. •R2 1,050 1,060 1,120 1;66o rechiney *No par value. 79.10 78.40 79.90 79.20 Rentes 3% 123.50 124.10 125.80 124.70 reenter, 5% 1920 95.90 95.90 96.30 96.20 Rental 4% 1017 Auction Sales.-Among other securities, the following, 100.20 100.40 100.60 100.60 Rentee 5% 1915 102.80 102.70 102.90 102.70 not actually dealt in at the Stock Exchange, were sold at auction Ratites 6% 1920 _ 1,150 1,110 1,090 Dutch Royal in New York, Boston, Philadelphia, Detroit, Buffalo and _ 1,700 1,750 1,700 Saint Cobh]. C.& 1,065 1,065 1,060 Baltimore on Wednesday of this week: Schneider & Cie 480 480 480 470 Societe Andre Citroen By Adrian H. Muller & Son, New York: 157 159 148 152 Societe General Fonder° Per 85. Snares. 105 108 101 106 Societe Francalse Ford 400 Park Estates Corp. no par__ $5 lot 20 Overseas Products Corp., el. A, 1,950 1,950 1,900 Societe Lyonnais no par; 80 common, no par_.... $10 lot A, class Corp., 200 Liquidometer 610 615 616 Societe Marseillalse 100 Amorskin Corp.. no par; 2,000 B$ DO Dar 11,800 11,900 12.000 12-,i613 Suez common, vot. tr. ctfs., no par_$10 lot lot 31 , class Corp., 200 LIquidometer 785 785 786 Turns. Artificial Bilk prof $5 lot 80 Tetra Co., pref.: 480 com__--$20 lot voting trust ctfs., no par 790 780 750 750 Union d'Electricitie 177 Durium Products, Inc.. Prel.: 525 Acme Wire Co., vot. trust ctfs.. Union des Minas 354 com., rot. tr. ctfs.. par $1312 lot par no -58 96 92 notes of Chester A. Wagon-Lila $9,772.25 corn., Corp., Bonner-Charter 46 Dunham-$2,500 due Sept. 1 4065 lot no par $7,272.25 due Oct. 1 and 1931, Co., Ave. pref.: 40 Fifth 551 EXCHANGE. PRICES ON BERLIN STOCK $10101 1931 com., no par; 50 1010 Fifth Ave. $2,000 demand note of S. H. DickiCo., pref.; 50 com., no par; 10 The Berlin Stock Exchange is dosed. $5 lot son dated Dee. 23 1929 16 Park Ave. Co., pref.; corn., $9,516.26 note of Island Fisheries no par; 100 F. F. French OperaNew York quotations for German and other foreign UnAssoc.. Ltd., due Feb. 1 1932-810 lot tors, Inc., pref.: 5 F. F. French $13,727.65 note of AUEOMOtiOn Investing Co., pref.; 5 common, listed dollar bonds as of Dec. 31: Ade/. Pictures. Ina., due Feb. 5 1932320 lOt no par; 40 pref.: 422 common, 25 18 $4,000 lot $179,810.95 drafts made by Weser. no par Bavaria 1111s, 1929-1945 24 20 Miller Beach Co., 10 Smith Sq., of . Corp. 5034 1953 6%, Scour. Electric 200 Dominion Brandenburg 29 27 London, B. W. 1, England, due int. $105,000 Certif. of beneficialVaBritish Hungarian Bk. 7348, 1982 $25 lot 17 Feb. 1 1932 1834 In a bond and third mtge. originEast Prussian Power 6%. 1963 32 30 100 National Trade Journals, Inc.. ally in the sum of $525,000, on European Mortgage & Investment 714s, 1968 100 98 $8 101 common, no par which there is now unpaid the French Government 534s, 1937 8314 so 1,000 Investors Assoc.,Inc.(Nev.), sum of $425,000 and int., coverFrench National Mail B. S. Line 6%. 1962 131 34 30 par no Ave., ing premises 1421-9 Sixth German Atlantic Cable 7%, 1945 20 18 and 101-7 West 58th St., N. Y...$25 lot 300 N. Y. United Hotels. Inc.. of German Building & Landbank 634%. 1948 B, com. 55 105 pref.; 45 cum. 7% Del., lot $10 1936 Corp Madison Ave. 611s. 1490 3 Hamburg-American Line 22% 40 Park-54th Corp $,30 lot 1834 no par Housing & Realty Imp. 7s, 1946 18 14 Certificate of indebt., series A, eV° lot 125 Union Solvents Corp., pref., Hungarian Central Mutual 71. 1937 lot par-3400 19 no 17 common, 126 par; no 1988 In 7s, 6, the No. Corp. Park 54th Hungarian Discount & Exchange Bank 80 50 65 Sharpies Solvents Corp., pref.. sum of 320.750, with int., dated Hungarian Italian Bank, 734% 1932 21 18 $300 lot 65 common, no par $10 lot 20 1929 March Koholyt 6345. 1943 34 125 Dyckman St. & Englewood Certificate of indebt., series A, of Leipzig Overland Power 634%. 1946 12 20 $30 lot Ferry corp., common Park-54th Corp., No. 19, in the Leipzig Trade Fair 7s, 1053 20 25 1-3 A.B.Chase-Emerson Corp., 33 dated Lit., with sum $3,000, of Marrnhein & Palatinate 75, 1941 $35108 21 25 no par lot June 15 1930 Munich 7s. to 1945 25 18 $10 3,250 Sunray 011 Corp. (Del.). 1,000 Minor C. Keith Florida PropNassau Landbank 634%, 1938 lot 28 20 8800 temp. $5 par erties, Inc..land preference Oberpfalz Electric 7%. 1948 38 250 Arrow Aircraft & Motors Corp.. certifs., no par; 1,000 common, Paris-Orleans Ry. 65, 1956 lot 21 18 $50 par no common, lot no ctfs., par.$20 temp. att. U. vot. Pomerania Electric 6%, 1953 20 12 20 National Diversified Corp., pref.. 83,500 promissory note of C. B. Protestant church (Germany) nig. 1948 18 15 15 Jan. dated $3,800, for Price common 25 1933 6%. Westphalia Provincial Bank of 40 $10 lot 1928 Rights of estate of C. B. Eddy toll lot Rhine Westphalia Electric 7%, 1936 83 1,000 It. D. Bunnell & Co., Inc., 67 shares of common stook of the Roman Catholle Church 611%, 1948 24 gl lot 21 par no Corp. Holding Metal Castings Roman Catholic Church Welfare 7%. 1901 56 45 15.000 Eureka Croesus milli= Co.. now being in possession of H. M. Saarbruecken Mortgage Bank Ca, 1947 25 $5 lot (Del.). par $1 Terrell and (or) William Ambler, Saxon State Mortgage 6%, 1947 250 215 00t 4,700 Kemper Radio (Nev.), et al Siemens & Halske debentures 6%, 2930 5 0 25 $ ssi 411 lot 21 18 par St 100 Marhow Co., Inc c0m Stettin Public Utilities 7%, 1946 26 24 200 Sentry Safety Control, no par; Co., Steel 1,000 Empire 6%, 1945 United Industrial Portland Cement. Alpha 35 20 44 2,600 Metropolitan Dairy Products Wurtemberg 78, 1929-1945 com., no par: 100 Fisk Rubber, $625 lot Co. common 1st pref., ctf. of dep., no Par: 1 Harrison-Rye Realty Corp.-3500 lot 25 Fisk Rubber, let cony. pref., $5 lot 20 'rrewalt Estates, Inc cert. of dep., no par; 100 Lehigh $16,830 Five-year note of Trewalt Valley Coal, no par; 100 MaraEstates, Inc., dated March 11 caibo 011 Exploration, no par $500 lot $30 lot 1930 Ocean Front Hotel Corp 86 lot 20 lot -$1 parno Inc., mirror. Fantum National Banks.-The following information regarding 502 Industrial Waste Products 200 Amer. British & Cont. Corp., Common $100 lot national banks is from the office of the Comptroller of the 2,000 15600 Corp. (Del.), corn.. no Par; 1,800 lot 100 Amer. British & Continental Currency, Treasury Department: 8500 lot Corp., preferred U. B. Patent No. 1,683.263 issued 200 Compania Azuesrera San AgnaCapital. VOLUNTARY LIQUIDATIONS. Sept. 4 1928 to John G. BucketCo.) Sugar Agustin (San A. j1D13. device shaue-display 100,000 Dec. 21-The First National Bank of Shelbyville, Ill common, par 100 pesos---$15 lot 400 Atlantic Funding Corp.. pref 3 lot Effective Dec. 19 1931. Liq. Agent, Shelby Loan & par $20; 400 corn., no par-.$2,300 lot 1,320 Crown Lock Co.(Del.), Cl. A, Trust Co. of Shelbyville, Ill. Absorbed by Shelby par no lot $5 lot par415 no 20 Napatree Corp., corn., Loan dr Trust Co. of Shelbyville, Ill, 300 Associated Dyeing & Printing Inc., pref.; Dec. 21-The Roseau County National Bank of Roseau, Minn..- 30,000 177 Durfum Products. par no corn., Corp., lot 51.312 lot 935 par Ws.. Cr. vot. corn.. 354 Effective Dec. 18 1931. Liq. Agent, R. J. Knutson, $5 lot 1,000 Western Public Service Corp. 26 Haley M-0 Co., corn. A Minnesota. Absorbed by the First National par DO lot 234 par-3100 no corn., Co., Barbaaol 100 Roseau. No. 6783. Bank of Commercialand miscellaneousgttvls JAN. 2 1932.1 FINANCIAL CHRONICLE $ Per M. Per Sh. Shares. Stocks. Mares. Stocks. 100 Mayfair House Corp., pref. B-56 lot 125 Federal Supply Co, par $10; 200 13 N.Y. Chemical Works (N.Y.)--$5 lot Miley Petroleum Exploration Co., 100 Aquia Creek Quarries Corp., par $25; 100 Raquel, Inc., pref. pref.; 100 common, no par $4 lot 400 Raquel, Inc., corn, no par; 10 Fed. Engineers Devel. Corp., 5.10 United Americas Co.. Inc.. corn., no par; 10 Federated $27 lot no par Engineers Devel. Corp., pref.'. 100 Blind Brook Realty Co., Inc.. 200 receivers ctfs. of, of notation Prof.; 100 Blind Brook Realty Co. $20 lot of transf. of N. J. Bnkrs. Secure. Inc., corn, par $5 Co $70 lot 2,000 Mayfair Oil Co.,com.,par $5 $10 lot 5 Farmers State Bank, Ophelm, 9.000 Prank .4 Dugan. Inc., corn, $500 lot Mont.; 301 Internat. Safety no par Number Plate par $1; 80 1.000 Engineer Gold Mines. Ltd., $100 lot Rigney & Co., Corp.. pref., par $10; Inc., common, par $5 20 Fieldway, Inc.; 30 Fieldston, 40 Florida Citrus Products Corp., Inc.; $2,000 Community House $5 lot el. A;40 class B. no par of Forest HOW Gardens, reg. red. 25 Edgeworth Smith, Inc., corn., gold deb.; $5,000 Worcester no par; 50 Edgeworth Smith, Inc.. $30 lot Consol. St. fly. Co., elf. of dep. prof for 1st & ref. m. gold bonds..$2,000 lot 50 Industries Development Corp., 20 Seaboard 011 Co. warrant. Issued pref.; 50'Industries Development $35 lot by Huntington Nat. Bank, Corp., corn., no par trustee, par $10 $1 lot 873 National Dept. Stores, 2d pf.$190 lot 5,000 Inter-Mountain Water & Pow. 500 Investment Sc Secure. Co. of Co., par $1 Fla, com, part paid subs°. reel $25 lot DO par 400 Stern Bros. cl. A temp. elf., no $2 lot par; 100 Stern Bros. corn., v.t.c.. 2.000 Calumet & Jerome Copper no par $800 lot $4 lot Co.(Arizona) par $1 100 Mandel Bros., Inc., no par_ _$225 lot 18 fractional shares Cliff Mining Co. 100 Pennsylvania Bankshares Sz Se$5 lot (Mich.) par $25 curities Corp.. units (5% cum. 100 Chic. & East. Ill. fly. Co., pref. with corn, stock subscrip. $52 lot pref warrant), par $50 3600 lot 100 Winona Copper Co. (Mica.) 150 Pittsburgh Thrift dr Loan Corp., assess. 12, 13 & 14 pd., par $25_$1 lot par $10 5800 lot 300 Tuiarosa Copper Co. (New 100 Bornot, Inc., el. A. stamped. $2 lot Mexico) par $5 no par $530 lot 700 U. S. Sr Internat. Secure. Corp. $145 lot 405 Morrow Motor Corp.,corn., par 2nd pref., no par $50 $5 lot 201 Lombard Tractor & Truck $40 lot 225 Florida Portland Cement Co., Corp., pref pref.; 325 Florida Portl. Cement 750 Fandango Corp., corn., no par; $26 lot Co.,corn., DO par $450,1ot 1,000 class A, no par 100 Corn Stalk Products Co., Inc., $1,500 demand note of Frances E. Robinson, dated Nov. 21 1928, common, no par $10 lot $5 lot no interest $11,600 unsecured demand notes of 500 Celluloid Corp., 1st partio. Caldwell-Temple Improvement 10 Co. (Fla.) 7% int., dated from pref.. no par April 1 193010 Oct. 30 1931__ --$10 lot 50 Deerpath Realty Trust, pref.; $25 lot 50 corn., no par 950 Wayne Pump Co. 333% calm 2 280 Dursar Corp.,class B,no par $100 lot pref., no par 100 Tremont-Mapes Corp., no par $10 lot 100 Standard Plate Glass Co., no par $7 lot Ctf. of indebt. Issued by Park Ave. 200 Consolidated Copper Mines Co. 39th St. Corp. in the sum of $20 lot of Del., par $5 $70 lot $49,975 Ctf. of indebt. Issued by Park Ave. $20,000 demand note of W. J. Blackman, dated Oct. 25 1929 39th St. Corp. in the sum of $20 lot $49,975 without recourse $6 lot Ctf. of indebt. issued by Park Ave. 8422.30 promissory note of Georgia 39th St. Corp. in the sum of M. George, due Mar. 18 1931, $20 lot $49,975 $I lot without recourse Note issued by 635 Sixth Ave. Corp. $16,300 bond and 3d mtge.. dated $5101 In the sum of $1,500 Oct. 16 1928, 1917 Walnut St., $15 lot Note issued by 635 Sixth Ave. Corp. Philadelphia, Pa $15 lot in the sum of $30,000 120 Schick Dry Shaver, Inc $620 lot 200 Unlon Cigar Co., temp. ctfs., 75 Columbia Graphophone Mfg. Co. $5 lot par $10 (Del.), pref $5 lot 5 Synch° Products Corp., pref.; 1,000 Internat. Share Corp. of Del. $400 lot 5 Synch° Products Corp., corn., common, no par no par.; 100 Freed Eiseman Radio 50 Cuban National Syndicate, no $5 lot Corp., corn., no par; 3 Ehpraim par M. Youmans, Inc., pref.; 114 253i Manliss Realty Corp., no par_S5 lot Ephraim M. Youmans, Inc., 100 Dugo-LIte Products, Inc 55101 corn., no par; 100 Ray Hercules Sundry promissory demand notes of Copper Co., corn., par $5; 1,500 Dugo-Lite Products, Inc., aggresub-shares Royal Canadian Oil gating $8,417.30, dated from Syndicate, no par; 54 Botanical Sept. 29 1928. to Oct. 4 1929-- _$5 lot Mfg. Co., pref., par $1; 15 Denver 10 Stratton Engineering Corp.. Joint Stock Land Bk. of Denver, pref.: 10 cora, non-voting, no par; 10 common voting, no par, $10 lot Colo.; 10 Denver Farm Co., Den3,090 Aircraft Impt. Corp., no par $80 lot ver, Colo., par $25; 600 Pandem 45 5-51 Municipal Projects, Inc. Oil Corp., no par; $75 lot 50 (N.Y.), no par $5 lot 3,400 Consol. Coal Co., corn 20 El Hof Realty Corp.(N. Y.), no 50 R. E. Thompson Radio Corp., $1 lot par $5 lot corn., no Par 2893i Amer. Bio-Chemical Labora50 R. E. Thompson Radio Corp.. tories, Inc., partic. pref let pref $1 lot $25 tot 150 Primrose House, Inc. (Del.). 876 Residuum Reclamation Corp., preferred $5 lot $25 lot vot. tr. Ws., no par 10 H. C. Yeager & Co., Inc., 7% 625 Residuum Separation Corp. Cum. pref.; 25 cons., no par____$2 lot (Del.), no par $5101 50 Chain dr General Equities, corn. 250 Schulte-United 5o. to 51 Stores, no par $22 lot Inc., pref. (Del.) $11 lot 50 Chalon Store Investment Corp., 100 Piggly Wiggly Stores, Inc., A common, par $6 510 lot $7 lot (Va.) no par 100 Central States Edison Corp., 5,000 Chatham Phenix Allied Corp. common, no par 371 lot (Del.) no par 635 88 Strader No. I Ins. (Calif.) no 190 Internat, Trade Press, Inc., par pref. (Del.) $10 lo 30 10 Northwest Corp., Cl. A al lot 95 N. Y. Secur. Corp. 7% pref___$20 lot 10 Northwest Corp., cl. B, no par_ _$1 lot 200 Aero Marine Klemm Co ,corn., 22 Lake Placid Club, pref no par $225 lot 810 lot 2521i Maxmoor Corp., A, no par; 198 Tiren Holding Co., Inc., stock 505 B. no par $100101 trust certificate $400 lot 1181j Relay Motors Corp., pref. 198 Then Holding Co., Inc., stock no par; 9013i common, no par_ $100 lot trust certificate $400 lot $632 Pierce, Butler dr, Pierce Mfg. 150 Belle Chemical Co., pref $10 lot Corp.6% note, due Jan. 31 1932: 8,000 Unity Gold Mines Co., 100 Pierce, Butler & Pierce Mfg. par $5 $16 lot Corp., corn., par $1 158 warrants 500 Dom. Coal Co., Ltd.,7% cum. for Pierce. Butler & Pierce Mfg. prof $405 lot Corp., common $150 lot 180 Walalua Agrlcul. Co., Ltd., 144 Plaza Investg.. Corp., par $5_ ..$50 lot par $20 15 96 Plaza Investg. Corp., B, par $1- -$5 lot 50 South American Gold & Platinum 400 Standard Publishing Corp., A Co., corn., par $5 1 no par $100 lot 2 L. H. Gilmer Co.. corn., par $10; 20 F. W. Kelsey Nursery Co., no 350 pref., par 310 50c par $50 lot 500 Rogers Brown & Crocker Bros., 5 Whitmer-Parsons Pulp Sr Lumber Inc.. pref $750 lot Co., v.t.e.; $2,200 20-yr. Inc. 75, 148 Youngstown Sheet & Tube Sept. 1 1943; $500 let mtge. cons. ctfs. of dep. blue ars.. no par... 10 4 Cliffs Corp., corn. v. t. c. no par_ 10 85, Sept. 1 1938, ctf. of dep.: 5553.50 ctf. of indebt., Cl A_ - _$100 lot 200 Pacific Coast Co., 2nd Prof. etf. of dep., par $100 108,996 Venezuela Syndicate, Inc., $46 lot $100 lot 571 Benicia docks Holding Corp., par $2 corn., no par 100 Union Cigar Co. of Md., temp. $25 lot $1 lot 180 Schick Dry Shaver, Inc., no par 1 certificates 1 Lockout Mountain Holding Co., 10 Union Cigar Co. of Md., temp. no par $1 lot certificate $10 lot 8 Investors Shares Henry Mandel $848.76 Principal amount receipt under Agreement dated July 1 Associates, Inc.: $800 385 Fifth 1922, executed in pursuance of Ave. Corp. 10-yr. cony. _ _$50 lot plan and agreement dated June 16 100 May Met. Corp., corn.,6%par $1; 1922, for coupons or rights to Int. 100 May Met. Corp.. pref., par In arrears (cl. A) ratified by the $10; 25 May Westchester 011 $18 lot Burner Corp., pref.; 25 May U. S. of Mexico 500 Public Utilities Consol. Corp., Westchester 011 Burner Corp., Minneapolis, corn. B (Ariz.)_ _ _ -$5 lot COM., no par $25 lot 100 Roy Motors Corp., pref., par 140 Globe dr Republic Ins. Co. of America $355 lot $10; 100 Roy Motors Corp., corn. par ¢1 100 Huntingdon & Broad Top Mtn. $10 lot . of dep. pref. 8 Investors Shares Henry Mandel RR.& Coal Co., ctf. stamped "agreement extended unAssociates, Inc., no par; $800 $10 lot 385 Fifth Ave. Corp. 10-yr. cony. til April 11933' gold notes: 50 Roy Motors Corp., 100 National Conduit & Cable Co., 31 lot Prof., par $10: 50 cora., par Sl___$5 lot Inc. of N. Y 85 Shares. Stocks. per Sh. Shares. Stocks. per Sb. 66 Dealers Disc. Corp. of America, 57933 Spreckels Sugar Corp., corn.; no par; $180 Dealers Disc. Corp. 2893, 1 corn.,stock warrants; 1,931 of America, 10-yr. deb. 68, series corn.; 96535 corn. stk. warrants_$30 lot B, July 1931 to July 1940, 130 4177-10000 Midhamptons Corp. coup. attached; 30 stkhldrs. pure. preferred 550 lot rights to cl. A partio. Prof. 21 Magazine Repeating Razor Co., Automobile Brokers, Inc $13 lot class B, no par $5 lot 125 Pantex Pressing Machine, Inc., 15 Magazine Repeating Razor Co.. pref.;8236 corn,, no par $55 lot clzss A, no par $5 lot 179 Magazine Repeating Razor Co.. 50 Lorraine Petroleum Co., pref., par $10; 50 Lorraine Petroleum class B. vot. tr. Ws., no p5r-$5 lot Co., corn., no par; 400 Savoy 011 200 Schick Dry Shaver. Inc., no par Co. of N. J., par $5 $50 lot $ lot 200 Southern Sugar Co., pref.: 20058 850 Central Amer. Mines, Inc., corn., no par; 400 National Parkpar $1 $25 lot ing Garages, Inc., pref.; 600 Na50 Hofgaard-RemIngton Corp., tional Parking Garages, Inc., pref.•, 500 corn., no par $25 lot 50 St. Phalle Corp., pref COED., no par; 3,316 Pacific Devel. $111 lot 62o., corn., no par 100 St. Phalle Corp..corn., no par_51.0 lot $5 lot 22 Metropolitan Commer. Corp., All the right, title & int. of John H. class A, preferred Carpenter (as assigned to Alice $50 lot 200 Bonwit, Teller & Co., $3.25 T. Carpenter) in & to all procumulative convertible pref perty & assets held by the syndi3 10 Federal Barber Shops (N. Y.), cate known as the Lincoln Bldg. no par Syndicate formed under agree$1 lot 57.700 Dayton-Biltmore, Inc.. 10ment, dated May 17 1928, as year cony. 634% secured gold amended & supplemented, to be notes; 138 3-5 corn., no par.. __$100 lot delivered & distributed only 112 2,120 Quayle & Son Corp., corn., accordance with the terms, prono par; 30 preferred A visions & conditions of said agree5160 lot ment $25 lot Assignment of second mortgage of $1.650 upon premises situated 20 Universal Fin. Corp., pref. at 747 Macon St., Brooklyn, par $10 $16 lot N. Y $100 lot 18 Towne Secure. Corp., pref _ _313 lot 50 Levy Bros. 84 Adler Rochester, $10,000 subscription to 1075 Fifth Inc., preferred 5 Ave. Syndicate $1 lot 1 Lookout Mountain Holding Co.. 125 U. S. Photo Products Corp., no par $10 lot preferred $5 lot 43 88-100 72nd St. East River 30 Canal Securities Corp., corn.; $40 tot Corp., no par 100 1st preferred 5300 lot 150 Suffolk Title & Guarantee Co.- 7 All right, title and interest of W. S. 67 Globe Petroleum Corp., par $10; Logan in and to 21 and 1-19th 5 Internat. Motor Clubs Assoc., shares of the common stock of pref.; 30,000 Kay Copper Corp.. the Locomobile Co., a Delaware par 51; 200 Maxim Munitions Corp $1 lot Corp., par $5; 10 N.Y. City Old 497 Hyport Co $1,600 lot Colony Club Corp., corn., par 4,050 Livingston Mines Corp.. $5; 10 preferred, par $50; 250 Dar $1 523I01 Serelco, Inc., class A, no par; 150 Young's Hats, Inc., pref _ _51001ot 50 class 13, no par; 2 Union Dye 50 Young's Hats, me., pref $50 lot & Chemical Corp., corn., vot. 50 Young's Hass, Inc., pref 550 lot trust certificates (and $2.50 frac26 Judgments aggregating $36,200 tional scrip), par $10; $500 5-yr. against Pohopoco Lakes, Inc_ $275 lot adj. 68. June 1 1923; 10 Massa5,701 British Can shares, voting $14 lot pequa Golf, Inc., par $10 trust certificates lc. 28 British Can Co., Ltd $7 lot Per Cent. Bonds. $5 100 South Coast Co lot $2,000 Park Estates Corp., 6% 25 U. S. Distributing Corp., prof 15 secured notes, ser. A with all 5 Singer Mfg. Co., corn 116 coupons affixed 368 Barclay Park Corp., common es 5lot-A (N. Y.), no par $15 lot $10,000 Central Atlantic Stat$ Service Corp., 635% gold notes. $1 lot 5 Ledor Co. (Md.), no par due 1933 with warrants 3,107 Guaranteed Capital Corp. ! t lot (Del.), par 51 $1 lot $1,000 The Barracks, Inc., deb (38 1939 $ 02 .00 101 400 Reece Transmission, common, no par $5 lot $28.000 Cedar Creek Coal & Cok let lien Os. March 1 1929, Sept. 300 Analytical Securities Corp., 1919, and subs. coups.attached_$15 lot corn., no par: 100 prof __51:1.000 lot 50 Playmor Golf, corn., no par____2 lot $140,000 Strebor Br Co., Inc., 5% gold notes, ser. A. due April 1 1,450 Catalin Corp. of America, common, no par $75 lot 1240 reg.; $2,000 5% gold notes $4O lot 225 Sterling Motion Picture Apser. B, due April 1 1940 reg paratus Corp. corn., no par .85 lot $5,000 N.Y.State Rys.. 1st oonsol. 'Madison Bank & mtge. 436s, Nov. 1 1962. etfs. 88 International 575 lot Trust Co of deposit 56 lot 206 Auto Car Co., pref., no par; $6,000 Cuban Amer. Realty Co. $10 lot COMEDOLI bonds, provisional ctfs $2,600 lot 2,700 Wrought Iron Co. of Amer., $11,000 Shelburne Inc. 2d mtge.88, 5 lot common, no par 1940, ctf. . of dep $2,700 lot . 8,045 Rio Autel, Ltd., par $100. $35 National Trade Journals. Ine.53 Argentine paper currency- _$1,600 lot 10-yr.6% cony, notes, due Nov.1 10 87th Street & East End Ave. 1938, stamped first dLstribution $100 lot Corp.. Prof.; 5 corn., no par__$115 lot paid 110 Skinner Automotive Device $200,000 National Trade Journals, Co., Inc Inc., 10-yr. 6% cony. notes, due $65 lot 50 Skinner Motors, Inc., no par $45 lot Nov. 1 1938; stpd. first distribu100 Charlyd Real Estate Corp_510 tot tion paidlot 110 J. V. Weckaugh of N. Y., $3 ,88 $20,000 National Trade Journals 7% cumulative pref Inc., 10-yr. 6% cony. notes. due $1 lot 50 Vella Motors Corp. pref Nov. 1 1938, stpd. first distribuSi lot 27 United Electric Light & Power tion paidlot Co., no par .68 $1,010 lot $20,000 National Trade Journals$ All right, title and int. of J. E. R. Inc., 10-yr. cony.6% notes.stpd. Carpenter in and to all property first distribution paid $68 lot and assets held by United Engi$37,000 Big Sandy Coal & Iron neers dr Contractors, Ine., a DelaCo., lot m. 68, due May 1 1944, ware Corp., under and by virtue Nov. 1930 & subs, coup. at$100108 of an agreement dated July 1 tached 1931, by and between the said $16.000 Evansville dr Ohio Valley J. E. It. Carpenter and the said fly. Co. 1st g. 68, Jan. 1 1949.4415 lot United Engineers & Construc$12 1,0 92 0 70 Adams Atwater & Co., tors, Inc., including all right. Inc., 3-yr. deb. as, issued Sept. 1 8100 lot title and interest of the said $66L,o9o0OodryMoanhwnaorttsanAso&oo Br000n.x. J. E. R. Carpenter in and to all property and assets held by the syndicate known as the Lincoln 8% gold bonds, due March 1 Building Syndicate, formed under 1942, coupons No. 3 due Sept. 1 $100 lot an agreement dated May 17 1928, 1931, attached as amended and supplemented to $50,365 demand note of General to be delivered and distributed Oil Gas Corp. dated April 1 1930, $1,000 lot only in accordance with the terms non-Interest bearing and provisions of said agreemls _$50 lot $3,000 Magazine Repeating Razor ar 6% convertible note 2046 25-100 Henry Klein & Co., pr .,1110-y 1 1e 939 C Ao 5100 tot common $400 lot By Wise, Hobbs & Arnold, Boston: Shares. Stocks. $ per M. 72 Boston Continental National Bank, par $20 $35 lot 36 Exchange Trust Co 90 67 National Shawmut Bank, par $25, 22% ex-div. 25 National Shawmut Bank, par $25, 22M ex-div. 242 West Boylston Mfg. Co.,corn_ _ 75e. 270 Associated Mills Co $100 lot 180 West Point Mfg. Co 35c. 18 Berkshire Cotton alfg. Co. (ondeposited) $115 lot 800 Great Falls Mfg. Co 15c. 48 Worcester Consal. Street Ay., lot pref., par $80 $2 lot 100 Boston Elevated Fly., corn__ 75 261 Worcester Consol. Street fly., 1st pref., par $80 $50 lot 739 Connecticut Mills Co., tot Prof.; 100 Bay State Fishing Co., corn.; 100 Thomas F. Galvin, Inc., v. t. 10 McKenna Process Co. of Illinois $1,000 lot 1 Devonshire Manor, corn. B,founders' stock $1 lot 100 Gould Coupler Co., com_ _ _ _$100 lot 50 Lombard White, prof $2 lot per S71. Shares. Stocks. 50 Lombard White,corn$2lot 11 Mass. Utilities Associates, prof., 173i par 200 o $c5k8land Light & Power Co., 934 common, par $10 23,1 40 Copper Range Co., par $25 7 special units First Peoples Trust- 2 834 150 United Elastic Corp pa ., r . csom 45poPru5b211.c50Indemnity 1 • 895 Worcester Syndicate, 3.1ot 5105 100 I. Fi.schman & Sons, class A_ _ _ 5 200 All-American Mohawk Corp., co..335 lot class A, par 55 100 U. S. Fidelity & Guaranty 5 common, par $10 100 Langford Sales Audit Machine 50o. Co., class A 100 King Pneumatic Tool Co., 8% 1 preferred 5 Tyson Co., Inc., pref $1 lOt 100 Bankers Mortgage Corp. of Worcester, common 100 Thompson Copeland Co., prefa lo 50 Thompson Copeland Co., corn $134 lot 1,000 Venezuelan Holding Corp_ -- 250. 86 FINANCIAL CHRONICLE [yin,. 134. Per Cent. BondsBonds. Per Cent. Shares. Stocks. ISM" $ Per SA. $2,000 Republic: Gas Corp.; lst $5,000 International Match Co.. 8 Commercial Finance Corp., pref.. .59, Jan. 15 1941 eoil, cony. es. Dee. 1945. ser. A.11 flat 43 & Int. Par $50; 234 common, par $50. $25,000 Boston & Maine RR Se, $13 on pref. $5,000 Warren Bore. 6s, March 6334 &Int: Jan. 1947 1941 38 & 70 Textile Finishing Machinery $10,000 Phila. & Read. Coal & Iron $1.000 City of CISCO Water Works, Co., porn.;50 Coldak Corp., corn. ext. fund. bond 65, May 10 1931. Co.. deb. 6s. March 1 1949-.36 & Int: A;75 American Transformer Co.; series 2, coupon May 1930 and $50.000 Minn. dt St. Louis RR.. let 1,000 Andes Petroleum, par $5; sub. on cons. 55, May 1 1034 etf. flop--S flat Shot 50 Automatic Musical Instru$2,000 Wickwire Spencer Steel 78 Frankfort, Esti 75 Oct. 1 1942_20 & int: ment Co.; 15 Connecticut Mills 1930 330 lot $5,000 New University Club, let Co.,corn., par $10; 42 Globe Tech16 flat mtge. 6s, April 1946 nolian Co.; 32 Signal Engineering $25 lot Mtg. Co By A. J. Wright & Co., Buffalo, N.Y. 38 Northeastern Realty Co.. pref.: $55 lot Shares. Stocks. 15 common $ S per Sh. Shares. Stocks. re p _ erire: ef p.,apwra 22 Central Bank of Medina.___$1.25 lot 100 f Amel 00 United Per Cent. 100 Motor Improvements, Inc.. no Bonds. Sixty-Five $100 101 $10,000 Detroit Ypsilanti Ann Arpar Ave., Inc., no par $3.25 bor & Jackson Ry. 55. Feb. 1926 30 Northern Texas Electric Co., 808 Pioneer Securities Corp., no Par $1 lut 5 flat (certificates of deposit) par $30 75 Chas. Cory & Son, Inc., no par_25o.lot 1 $6,000 Youngstown & Ohio River 50 Midland Asbestos Corp., class A, 50 Buffalo Forum, Inc., interim 1 flat RR. 55, April 1935 250. lot temp. ctf., no par receipt, no par 31 lot $6,000 Salt Lake & Utah RR. 68, 25 Midland Asbestos Corp., class B. $5 lot April 1944 (receipts) Per Cent: Bonds. temp. ctf., no par nd $1.50 lot $6,000 Texas Electric Ry. deb. 6s. 40 Hydrogenating Products Corp., $4.000 Pittsburgh Hotels Corp. $5101 Jan. 1942 no par yr deb. 634s, with Sept. 1930 $1 lot $5,000 N. Y. United Hotels Co.(is, and sub, coup., also coin, stock 63 Caldwell Experimental Corp., $5 lot Feb. 1947 no par $6 lot warrants attached $3 lot $10,000 Indiana Consumers Gas & Temp.receipt for 252 she.8% cum. $3.000 New Orleans Pontchartrain By Products Co. 5345, Oct. 1946 $5 lot Bridge 15-yr. deb. s. f. 75, Sept. prof. stock Caldwell Exp. Corp--$5 lot $1,000 Publio Utilities Cons. Corp. 1941. with warrants 2,000 Argonaut Cons. Mines, Ltd., 35 5345. March 1948 par $1 " 1°1 $1 lot $3.000 Atlantic Fruit & Sugar Co. 53.000 Central States Electric Corp. temp. 49 inc. gold deb. 8s, Jan. 1 2,170 Buffalo Roswell 011 & Gas 33 5345, Sept. 15 1954 $1.25 lot 500. lot Co.. Inc., Par $1 $1,000 Southwest Natural Gas Co. 21 (is. May 1945 The following sales, received too late, were made by $1,000 German Conscl. Municipal 16 A.J. Wright & Co. last week (Dec.23): Loan (is, July 1947 $1.000 Porto Alegre (City) 75, $ per SA. Shares. Shares. $ Per Mt Feb.1968 6 flat 85 Giroux Mfg. Co $1 lot 20 Genesee Motoramp Garage, Inc., $10.000 Island Oil & Transport 250 pref 20 Frontier Share Corp., corn., no Corp.8% partic. notes (ctf. dep.)3 flat $1 lot 20 Genesee Motoramp Garage,Inc., nor 500 lot corn., no par 20 Frontier Share Corp., pref $2 lot By Baker, Simonds & Co., Detroit, on Thursday, Dec. 10 Korect Air Meter Corp., pref.-50c. lot 161 Hewitt-Gutta Percha Rubber $60 lot Corp., par $10 50 Korect Air Meter Corp., corn_ 24 1931: no par 500. lot 30 North Properties, Inc., no par__$1 lot BondsPer Cent. 800 Candelaria Mines Co. of Ne$ per St. Shares. 100 Iron Fireman Stoker Co., Inc., $5,000 Ctts, of dep. Hotel Governor 61 Michigan Mtge.Invest. Co., pref. $7 LOS vada, par 31 par 810 81.25 lot Clinton 1st mtge. 634s, 1943, ser. with 25 she. own 50c. lot 300 Standard Plate Glass Co., no 111 David E. Kennedy, Inc., pref., B Ws. of dep $1.50 lot $1 lot 55 Red Run Land Co $1.50 lot $2.50 lot Dar $50 Par 60 Atlas Drop Forge, oom 3200 lot $1.000 Detroit Garages 1st mtge. 500 Sonora Products Corp.. no par_32 lot 500 Atlantic Fruit Se Sugar Co.. par 5345, 1943 $350 lot 100 Brunner-Winkler Aircraft Corp.. 3,000 Peninsular Stove Works.___ Si lot $1 lot $5 1,380 l awood Sales Co., corn._.510 lot $1,000 Fort Shelby Hotel 1st mtge. no par $1 lot 1,000 Abba Mines, Ltd.. par 81_32.25 lot $185 lot 1,000 Inter-Mountain Water & Pow. 200 Schettler Drug A 6s, 1941 2 1,100 Pasadena El-Monte Silver $4,000 Union Trust Building, 2nd 500 Boettger Baking Co., pref.: 500 $4109 Mines Corp., par $1 Co., par $1 $1 lot mtge $3,000 lot 1,500 Lance Creek Royalties Co., COM $5 lot 1,400 Adargas Mines, par I petio_$1.50 lot 100 Sanatorium Equipment Co-- _$5 lot $1,000 Great Lakes Term. Warepar $1 $1.25 lot 31 Niagara Falls Hotel Corp., Pref.. house of Toledo deb. 75, 1937; 100 Indiana Limestone Co., pref.: with 1534 she. of corn., no par-.$10 lot $1,100 gen. mtge. 75, 1937; 2 1-10 500 cons $5 lot 51 lot 9/12, corn. stook By Weilepp, Bruton & Co. Baltimore: Shares. Stocks. per St. S per .58. Shares. Stocks. By R. L. Day & Co., Boston: 5 Bait. Ship Supply Co. cap. stk., 100 Inter. Arbitrage, free: 10 New Shares. Stocks. per St. Shares. Stocks. $ Per St. Issue Trading Corp.: 50 Inter. Par $5 $1 lot 170 First National Bank, par $20_ _ 3234 50 Rolls Royce Co. of Amer., pref. 2 $1101 3 Bait. Steamship Co., pref.: 3 Arbitrage, vot. tr. ctfs 200 Atlantic Nat. Bank, par $25-15-16 170 units Universal Chain Theatres I COM $1101 5 Lord Baltimore Hotel, corn sl 150 Chase Nat. Bk., N.Y., par $20. 28 1,150 Colon Oil 250. 137 4-10 Beaver Inv. Corp., cap. 1,074 Lorraine Pet., pref $1 lot 12 Chase Nat. Bk, N. Y., par $20- 28 125 New Bradford 011 Co., par $5._ 50o. stock $1 lot 1,500 Lorraine Pet., pref.; 2,100 100 Nashua Mfg. Co., common.._33.1 22 Boston Chamber of Commerce 80 Bonded Mtge. Co.. pref.; 243 COM $1 lot 100 Arlington Mills 1834 Realty Trust, 2nd pref.; 108 New Bonded Mtge. Co.. com, no par: 16 Maryland Title Secs.Co5 15 Lancaster Mills, pref Ocean House, Inc., pref. par $10; $35 lot 150 Bonded Mtge.& Finance Co., 6 k.erch. tge. & Credit Co. pf ‘ 30 of 63 Pepperell Mfg. Co Boston Lodge order 30 $1,000 corn., par 100.: 50 Bonded Mtge. 134 Norman T. A. Munder Co., 100 Royal Worcester Corset Co., Elks(is, April 1940, coupon, April dr Finance Co.. pref $25 lot corn., no par; 5 pref $1 lot common 8 1929 and sub. on $30 lot 272 Central Teresa Sugar, pref $1 lot 150 Peoples F re Isis. Co. of•Md..., 6 10 WaYPoysett Mfg. Co., prior pref 1 50 Krum & Foster Insuranshares 625 Central Trust Co. of Mary20 Peoples Fire Ins. Co. of Md_ 1 13 50 Great Fails kits% Co $2 lot Corp., class B, par 35 land (Frederick) $100 lot 75 Pet. Eng., corn,,no par $1 lot 10 Hamilton Woolen Co 50 Halifax Fire Insur. Co., par $10 9 50 200 Chapman Self Locking Nut 1,000 Pittsburg 011 & Delv„ pref.; 12 Worcester Consol. St. Ry. Co., 23 Home Fire Security Corp., par Co., par $10 $1101 1,000 corn $1 lot let pref., par $80 250. 500 Davis Drug Stores Corp., ctf. $1101 $10 1,450 Real Est. Mtge. Co. of Bait., 20 Boston & Worcester Elec. Cos., 126 Imperial Royalties Co., pref. A. of dep., corn com., 200 pref. par 325$10lot $5 lot 1 common par $1 $1 lot 7,000 Eikorn Coal Co.. coin., no 750R. D.Bunnell Co., corn., no-par31 lot 50 warrants Italian Super Power__ _ 25c 420 Industrial Devel. Corp., par $1 1 MT $10 lot 15 New Engl. Southern Corp., 2234 Okeechobee. Ino $10101 10 Punta Alegre) Sugar Co., corn., 3,000 Elkhorn Cool Co., pref., par pref.; 86-100 corn Si lot certificate of deposit, par $50_ __10c. 10t 90(Paymster Cons. Mines, Ltd.. 550 526 lot 800 Royal Canadian 011 Syndicate: common, par Si $26 lot 10 Holmes Mfg. Co.: 734 Waltham 66 2-3 Finance St Guar. Corp., PL, 1,000 Secure. Corp. of New Bleachery & Dye Works 30 Bowman- Biltmorc Hotels Corp. $1013 lot no par: 33 1-3 corn. A, no par: England, Inc $10 lot 1st pref.; 120 2d pref.; 200 com_3535 lot 1.050 Cornstalk Products Co., corn.25 B, no par $10 lot 1,000 Sun Mtge. Co.. corn $35 lot 20 Mystic Valley Mtge. Co., pref.. Inc., common $100 lot 666 Foster-Brown Co $100 lot 1,275 Tob. Stemming Mach. Co., 50 common $20 lot 440 Meteor Crater Exploration & 10 Gillet & Co., pre! 334 par $10 $50101 50 Converse Rubber Co., 2d pref.. Mining Co., corn.; 440 pref._.$100 lot 50 Gillet Realty Co., pref $20 lot Note of Riverside Land Co., dated par $33;50 common $475 lot 260 Swan Island Commercial Co.. 100 Gillet & Co., pref 134 Jan. 151925, for $28,204.95, due 175 Candy Brands, corn., par $1_ _$30 lot prof.: 25.5 corn.; 1,286 Swan Island 100 Glass Decorating Co.; 10 Akme Oct. 15 1927, and secured, to1,591 Taunton Rubber Co.,com.$100 lot Trustees $150 lot Flue Co., pref.; 100 Glenrock gether with other notes, by a 100,000 Sierra Crest Mining Co., 20 Shawmut Bank Invest. Trust__ 134 011 Co., capital stock $2 lot mtge. from the Riverside Land par 10o $100 lot 50 Mass. Investors Trust 16 100 Guar. Co. of kid„ 2nd pref Co. to Foster-Brown Co., dated $1 lot 10 Bankers Mtge. Co., corn $134 lot 10 Ritz Carlton Hotel Co., prof..54 lot 2,000 Hamilton Gas Co., vol. tr. Jan. 15 1925, and recorded In 22 Bankers Mtge. Co., pref.,2 oom.$5 lot 16 Salem Briquette Co $2 lot Ws., corn Hillsborough Co., on which 34 100 Kidder Participations. Inc.. 134 Tenney Realty Trust $100 lot 40,57634 Henry Sonneborn & Co., there is a balance due, barn. 100 Ground Gripper Shoe Co.. pref. No. 1 10 com., no par Int., as of Dec. 30 1931. of $400 lot common 50 Kidder Participations, Inc.. $10 lot 7,440 Henry Sonneborn & Co., $14,339.64; the said note to be 360 Amer. Plano Corp.. class A_ 10 250. pref. No. 3 1st pref., par $25 sold without recourse MO lot $2,500 lot 331 United Elastic Co 934 123 Hotel Rennert, pref. (con50 Kidder Participations, 100.. corn. No. 3; 75 own. No. L...315 lot 93 Oyster Harbor, Inc.. pref-_-.$50 lot sisting of 118 sin. v. t. c. and 5 Bonds. Per Cent. 124 Fresh Pond Parkway Realty Co. Co., class A. 100 Rainbow Luminous sin. free): 669 Hotel Rennert, $5,000 Gilmore Coal Mining Co., of Cambridge $17 lot $20 lot 50 class B corn. (consisting of 525 shs. 1st (is 1936 510 lot 2 Augusta-Howell Realty Co- - _5131 lot 100 Brockton Gas Light Co., stock free and 144 she, v t c $7 lot $1,000 Mayaguez Lt. & Pow. & trust certificate, par $25 35 Augusta-Development Co_ ___31)4 lot 2011 100 Insurance Secure, CO.. Inc.. Ice 6 I-.s 1953 613 251 Springfield Gas Light Co., vol. par $10 200 Arkansas Natural Gas Corp., 134 $2,000 Tampa Un. Tertril, 1st 6345 3331 5Bait. Broadcasting Co., pref trust certificate, par $25 COM. A; 5 Lynn Realty Trust 15 1953 7 flat 179 Fitchburg Gas & Electric Co., corn.; 5 Lynn Realty Trust pref.; voting trust certificate, par $25_ 40 .5 Lowell Building Trigt; 1 10-30 By Barnes & Lofland, Philadelphia: B. B. & R. Knight Corp. corn. 117 Investment Assoc. of America. . Common $131 lot per St. $125 lot voting trust certificates • .S 125 Plaza Tr. do., 210 Beecher Falls Co., Inc., A: par isto 40 Heywood Wakefield Co.. corn- 334 140 Jere. Woodring ds Co., Hazel51 lot ton,Pa.,6% pref 73 29 Bank of Pittsburgh, N. A 500 Fisk Rubber Co., let pref.. 113 Beecher Falls Co., Inc., $60 lot 50c. $5,000 2nd mtge. Nos. 5222 & $20 lot 10 AU. Safe Dep. & Tr. Co., Atcertificate of deposit 20 Knitted Padding Co 5224 Broomall St., Phila., under 1,000 Roister Radio Co.(old stock) $2 lot 125 Fisk Rubber Co., 1st cony. lantic City, N.J $15 lot and subject ton 1st m.of $20,000 $4 lot 20 Merlon Title 4: Tr. Ardmore. 50o. 1.320 Rollins Assoc. $3 part stock. _$6 lot Preferred certificate of deposit 10 Phila. Nat. Bank, par $20 1,760 Rollins Assoc. common 52 Pa $15 lot $2 lot 100 Transue & Williams Steel Forg30 Mass. 13Q.& Ins. Co., par $25.. 40 334 10 Phila, Nat. Bank, par $20 ing Corp 45 Merlon Title & Tr. Co., Ard.51 60 Mass. Bdg. & Ins. Co., par $25- 4034 500 F. B. Stearns Co., corn $5 lot 8 Tradesmens Nat. Bk. & Tr. Co_ _130 more, Pa $9 101 47 United Elastic Corp 5 merlon Title & Tr. Co., Ardmore, 50c. 4 First Camden (N. J.) Nat. 13k. 8 500 Utah Apex Co., par $5 50 Public Utilities Consol. Corp.. & Trust Co Pa $5 50 300 Fedders Mfg. Co., Inc., cl. A. 4 Ariz.,7% pref 25 United Sec. Life Ins. & Tr. Co.. 234 Merlon Title & Tr. Co., Ard$40106 200 Kidder Participations, Inc., 11 Chester Co., 7% pref more, Pa $1 lot par $10 100. $2 lot preferred No.3 55101 50 Baush Machine Tool, corn_ _ _$130 lot 74 United Security Life Ins. S. 66 Glen Knitting Co. of Phila., 200 Groton & Knight Mfg. Co.,coin 1 par $50 $2 lot Trust Co.. par $10 $25 lot BondsPer Cent 100 Tampa Electric Co 100 Herculene 011 & Ref. Corp.,-..$5 lot 10 United Security Life Ins. & All right, title and interest of Com24 31 15 General Aviation Co Trust Co., par $10 $6 lot 60 Boulevard Recreation Co., pref. munity Newspapers, Inc., a 3 34 3() Boulevard Recreation Co.. corn_ 107 Brockton Gas Light Co. stock 40 Real Est.-Land Title & Tr. Co., Mass,corporation under a certain 1 Eldredge Express & Storage 10 trust (old trust), par $25 par $10 agreement dated June 11 1930. 2034 Warehouse Co., pref 5 Boston Insurance Co $5 lot 57 Integrity Trust Co.. par $10...._ 1434 between Community Newspapers, 265 125 Rainbow Luminous Co., cl. 5 Centennial Investment Co $1 lot 65 Integrity Trust Co.. par 510..... 14 Inc., and others, and all its right, 50 class B 53 Tot 600 Bankers Bond & Mtge. Guar. 100 Aldine Tr. Co., par $10 3171ot title and interest in and to 60 Co. of Amer., no par $5 lot 355 U. S. History Assoc $75 lot 330 Aldine Trust Co., par 310 $30 lot shares of the stock of "Hudson $2 lot 1,800 Union Bldg. Co 350 Mexican Northern Mining & 500010$ 100 Aldine Co., par 310 Daily Sun," Inc., par 100: all its Media Drug Co., pref. as follows: Railway Co $40 lot 50 Pa. Co. for Ins. on Lives, &c.. right, title and interest in 100 50 at $5 lot: 50 at $6 lot: 175 at 3031 2,500 General Theatres Equippar $10 shares of the stock of Medford $22 lot; 65 at $12 lot: 172 at $31 ment Inc., preferred 50c 70 Pa. Co. for Ins. on Lives, &c., Publishing Co. and all its other lot. 400 Beacon 3031 articipations, Inc., par $10 right, title and interest in 450 $51ot preferred A 5 100 Bankers Trust Co., par $50.- -$3 lot 65 Media Drug Co., corn shares of stock of Enterprise 1 100 Hardy Coal Co., par $1; 120 988 Medla Drug Co., corn $2 1 Bankers Trust Co., par $50 Press, Inc. Marlboro, Mass., par Vadsco Sales Corp.; 100 Pan$3 50 Central Tr.& Says., par 310- _$8 lot 50 Media Drug Co., corn 100, in pursuance to the terms handle Products $100 lot 240 Central Tr.& Says.. par $10..560 lot 100 Chester Vol.- Secure.,Inc., pref. of Its collateral note dated June A, par $12.50 $0 New England Southern Corp., $1106 $250 lot 500 Plaza Tr. Co., par $10 of its coll, note dated June 11 1930 prior preferred 31 lot 500 Louis Mark Shoes, Inc., corn_.$4 lot $6 lot In the sum of $7.114.23_321,221.55 lot 40 Plaza Tr. Co., par 310 Awes, Stocks. '''' i per St. 5 George E. Keith Co., 1st pref..-.- 15 300 Warren Bros. Co., 2d pref 6 75 Warren Bros. Co., lot pre 534 34 Ludlow Mfg. Assoelates 60 33 Plymouth Cordage Co 51-5234 393 Manitoba Power Co., com 3395 lot 44 Eastern Mfg. Co., corn $85 lot 180 Sunray 011 Corp., par $5 25o. 150 Westbury Co $10 lot 35 J. R. Whipple Co., lot pref._ 134 250 Miami Avocado & Citrus Growers, Inc 525 lot 150 Fairchild Milling Co. (Cleveland) 250. 126 National Surety Co., par $50.. 10 100 Pine Tree Products Co 500. 125 Reliance Insurance Co. (Philadelphia), par $10 2 100 Southern Surety Co., par 31.25510 lot 15 Stone & Webster, Inc 9 2,850 New Gibraltar Mining Co., par 100 $2 lot 33 Nat. Dairy Products Corp., corn. 2234 100 Curtis Wright Corp., class A_ - 134 50 Great Northern Paper Co., par $25 1634 50 Socony Vacuum Corp., par $25_ 834 10 Meteor Crater, Exploration & Mining Co., 7% cum. pref.; 10 common $2 lot 20 Detroit & Harbor Terminals, Inc., pref.; 2 common $4 lot 50 Security Investing Corp., 7% Pref.; 975 common $10 lot 226 Aquatone Corp., corn. (ctfs. of beneficial int.); 13 pref $20 lot 100 Candelaria Mines Co., par $1; 625 Federal Mines & Metals Co.. par $1:62 Wabash Petroleum Co_32 lot 20 Detroit & Harbor Terminals, 310 lot Inc., pref.; 2 common JAN. 2 1932.] Stares. Stock, $ Per Sh. 500 Cheater Val. Secure., Inc.. corn. par $1, tr. etfs $40 lot 500 Idaho Copper Co.,Inc., par $1_32 lot 500 General Mines Corp., par $1.--82 lot 15 Newberry Lumber & Chem.Co.. prof.;60 corn. A; 12 corn. B, vot. tr. Ott.; $1,500 let m. ils. Dec. $250 lot 1931, coup. attached 30 Sea Bay Co $3 lot 14 Hart Coal Corp., pref 53 lot 60 Thacker Coal Mining Co $3 lot $12,500 promissory notes of Gerson $14 lot MaMa 100 Investment Bond & Sec. Co.- 6* 150 units North American Bond & Mtg.Co $900 lot $1 lot 5 Drexel Hill Title & Trust Co 15 Drexel Hill Title & Trust Co----$1 lot 30 Lansdowne Bk. & Tr. Co $15 lot 72 Lansdowne Bk.& Trust Co.. 820 lot 100 Lansdowne Bank & Trust Co $61) lot 100 County Trust Co $3 lot 25 Northwestern Trust Co $15 lot 20 George M.Berringer & Co 2 24 P.D.Hughes. prof 20 12 P. D. Hughes,corn 1 273 Northern Central Trust Co- $1 lot 10 units Corn. Hotel Corp., Camden, N.J 10 243 Penn Rivet Corp., pref 1 54 Warner Quinlan Co., corn 500 125 Warner Bros. Pictures, corn.- 2* 10 Darby Bank & Trust Co $1 lot 25 Eastland Des'. Co., Akron. 0...$2 lot FINANCIAL CHRONICLE Shares. Stock. $ Per Sh. 20 Abitibi Power & Pap. Co., 6% cum. pref 8 Bergner & Engel Brewing Co.. $1 10t 8% prof Founders Life Membership Club Atlantic, Inc., Brigantine, N.J...$2 lot 44 Union Bank & Trust Co $1 lot 17 MI.Holly National Bank 26 $7 Pe? Name of Company. When Parable Books Closed. Days Inclusive. Public Utilities (Concluded). American Can, common (guar.) 81 Feb. 1$ Holders of reo. Feb. 20 American Coal (guar.) $1 Feb. 1 Jan. 12 to. Feb.. 1 American Composit Trust Dec. 81 *Holders of res. Deo. 15 •15. Amer Invest. (Springfield, pf.(au.) "54* Jan. 1 *Holders of tee. Des. 21 Amer.Invest. Trust Shares 29.1. Dpi. 51 Holders of coupon No.4 National Co., Toledo,corn,-Divi dec45 misted. Bonds. Per Cent. Amer. Preferred A and B (guar.) •1* Jan. 1 $10,000 Selwyn Theatre Corp., let American Steam Pump, corn,(quasi._ •95o. .3 *Holders of tee. Dee. 31 m. 65, due June 1938 $250 lot American Steamship(gum.) 1111 Dec. 31 'Holders of tee. Dee. 15 83,500 Rittenhouse 13q. Corp.. Inc.. Amer. Thermos Bottle, class A (quar.) •154.. Feb. 1 *Holders of tee. Jan. 20 68, 1946 2 Andale Co.. pref.(guar.) arm Jan. 2 *Holders of tea. 81 $15.000 Waterloo, Cedar Falls & al% Dee. 31 *Holders of tee. Dee. Annapolis Dairy Prod., pref.(gnat.) Dee, 24 Nor. By., let m. 5s. 1940, otf. 1 Automobile Banking, common Jan. 11 *Holders of rec. Dec. 22 of deposit $700 lot Common * Jan. 11 *50a. Holders (extra) of tee. Dee. 22 $10,000 Texas Elea. Ry, cony. deb. Preferred *4 Jan. 11 *Holders of roe. Dec. 22 6s, 1942, Jan. 1 1931 & subs. Baldwin Co.,6% preferred (guar.) "114 Jan. 15 *Holders of tee. Dee. 31 coup, attached $100 lot Bancroft (Joseph) & Sons Co., pref.-N' aetion taken. $2,500 Pittsburgh. Webster Hall Bandlnl (monthly) •5o. Janj20 *Holders of tee. Dee. 31 Hotel, let m.6a.ett. of deposit $450 lot Bankers Petroleum Commercial See.(Del.),Corn *50o. Jan. 2 *Holders of tee. Des, 26 $3.000 8. E. cor. 16th & Walnut '31.5 Jan. 2 *Holders of tee. Dee. 26 Preferred Corp. let 65 1947 20 Barrymore Clothing, pref.(guar.) Jan.I 1 "Holders of reo. Deo. 31 *2 $2,000 Pine Hill Collieries Co. lit Benjamin Eleo, Mfg, Co., 1st pref.(go) •2 Jan.' 2 *Holders of tee. Dee. 23 6s, 1942 5 Bloomingdale Ikea., pref.(guar.) •1* Feb. 1 "Holders of tee. Jan. 20 $1.000 Clarksburg, Columbus Short Bridgeport Machine pref.(guar.) 1* Jan. 1 Holders of tee. Dec. 21 Route Bridge Co. lst 6*s 1952._ 5 Broadway Dept.Stores. 2d pref/annual) •7 Dee. 24 *Holders of reo. OM. 31 $2,000 Fort Pierce (City) St. Imp. taken Bruce action (E. L.) Co. pref.-No Cs, 1932 15 pref.-Divl dead armed Bulkley (Cleveland). Bldg. $2,000 Syracuse Rapid Trans. Ry., Cabot (Godfrey L.), Ino •$15 Jan. 30 *Holders of tee. Jan. 15 7 ctf. dep. 1946 *Holders of roe. Dec. 24 California Conserving, Inc..Pref. ORO *4344o Jan. $2,000 Fla. Everglades Drainage Canada Amer. Trust Shares *30e. Dec. 3 *Holders Of COULIOn No.3 Dist. 68, 1933 et!. dep 25 *Holders of rep. Dee. 31 Canada Claire Sawmills, pref. *$3. Jan. 50e. Mar. 1 Holders of roe. Feb. 15 Carman & Co., Inc., class A (guar.).'1* Dec. 31 *Holders of roc. Deo. 23 Cassidy's, Ltd.,7% pref.(guar.) DIVIDENDS. Cent. Franklin Proems, 1st & 2d pf.(gu.) *1* Jan. 2 *Holders of rec. Des. 3i Dividends are grouped in two separate tables. In the Chicago Transfer & Clearing, corn *2* Jan. 2 *Holders of roe. Dee. 17 Cincinnati Postal Term.& R1ty, pf.(qtr.) *1* Jan. 15 *Holders of tee. Jan. 5 first we bring together all the dividends announced the Cleveland •1* Jan. 1 *Holders of ree. Dee. 26 Dairy Products, pref. (qu.) current week. Then we follow with a second table, in Collyer Insulated Wire (guar.) •1214o Jan. 1 *Holders of rec. Dee. 24 which we show the dividends previously announced, but Consolidated Retail Stores, pref.-Divid end omitted. *Holders coup. Consolidated Trust Shares No. 3 of *806. Dec. 3 which have not yet been paid. Continental Gin, pref.(guar.) *Holders of rec. Dec. 18 "I* Jan. Courtaulds Ltd. The dividends announced this week are: Am. dep, rcts, for pref. tog *Holders of roe. Dee. 28 *214 Jan. Crowell Publishing 5% pref *Holders of rec. Jan. 25 *3.4 Feb. District Bond Co.,common (guar.) When Per *Holders of roe. Dec. 28 Books Closed. "50o. Jan. Name of Company. Cent. Payable. Preferred (guar.) *37.4c Jan. *Holders of rec. Dec. 28 Days Inclusive. Diversified Trustee Shares, or*. ells..•4 2.824o Jan. *Holders of coup. No. 14 •1 3.222.Dee. 3 *Holders of coup. No. 14 Serles Railroads (Steam). Barton RR. Holding Co., pref Downington Paper, preferred "3.4 Dee. 3 "Holders of tee. Dec. 20 Jan. 10 *Holders of too. Dec. 31 Connecticut & Passumpsio Rivers, pl.-- .3 Eastern Dairies (guar.) 260. Feb. Holders of tee. Jan. 15 Feb. 1 *Holders of rec. Jan. 1 De/aware Lackawanna & Western-DIM dend o mitted Eaton Axle dr Spring, COrnmOn (gust.).. •12*e Feb. *Holders or rec. Jan. 16 Lehigh & Hudson River (guar.) ElectricProdueta Corp.(Pa.)(gust.)... •12.4c Jan. *Holders of res. Dee. 25 Deo. 31 *Holders of reo. Dec. 22 *2 .5 Maasawippi Valley RR Ely & Walker Dry Goods, let pref 314 Jan. 1 Holders of rec. Jan. 4 Feb. 1 "Holders of roe. Jan. 1 Mill Creek & Mine Hill Nay. & ER..... *$1.25 Jan. 11 "Holders of roe. Jan. 4 Second preferred Jan. 1 Holders of roe. Jan. 4 3 Enamel Products Co NorthernCentral **2 Jan. 15 *Holders of rec. Dec. 31 Sc. Dee, 8 Holders of tee. Dee. 28 Pittsb., Cin., Chicago & St. Louis Fiberlold Corp.,common (guar.) *2* Jan. 20 *Holders of rec. Jan. 9 •75e. Dee. 8 *Holders of rec. Des. 18 Reading Company, common (goat.) *500. Feb. 11 *Holders of ree. Jan. 14 •154 Deo. 3 *Holders of rec. Dee, 18 .3 Rochester & Genesee Valley Fifty Associates, Toledo, cons. & pref.- Divld rids cm tted. Jan. 1 *Holders of roc. Jan. 1 Sussex RR Fink (A.)& Sons, Inc., prior pref *50o. Jan. 1 *Holders of rec. Dec. 24 *Holders of roe. Dec. 19 *3* Jan. Firestone Tire & Rubber. corn.(guar.).260. Jan. 20 Holders of rec. Jan. 55 Public Utilities. First Nat. Corp., Portland, Ore.Amer. Cities Pow. Jo Lt., class A (qu.)._ (n) Feb. 1 *Holders of Mo. Jan. 5 Class A (guar.) *50o. Jan. 15 *Holders of rec. Dee. 24 Class B-Dividend action deferred •15i Dec. 31 *Holders or tee. Dee, 20 First State Pawners Society, 7% pref Broad River Power. corn.-Dividends su spende d. Foulcis Milling Co., Pref.(guar.) Jan. 10 *Holders of rec. Dec. 31 *2 Canadian Light & Power (guar.) 14 Jan. 15 Holders of tee. Dee. 31 Franklin Process (guar.) *50o. Jan. 2 *Holders of tee. Dee. 24 Central States Edison, 7% pf. (guar.). _ "154 Jan. 1 *Holders of rec. Dee, 15 •13.‘ Jan. 2 *Holders of tee. Dee, 24 Fuller Brush, pref. guar.) Ches. & Po. Teiep. (Bait.) pt. (iu.)*1* Jan. 15 *Holders of tee. Dee. 31 General Mills, corn. (guar.) 760. Feb. 1 Holders of rec. Jan. 15 Community Water Service, corn.-Divi dend o mined German Amer. Bldg. & Loan Jan. 1 *$3 Consolidated Gas(N. Y.), corn. (guar.) *$1 Mar. 15 *Holders of rec. Feb. 5 Gooch Milling & Elev., pref.B guar.)._ •85140 Dec. 28 Dakota Central Telep.,com.(guar.).- - *2 Jan. 2 *Holders of rec. Dee. 30 Gordon Belyea, Ltd., 7% 1st pref.(cm.) •1* Jan. 1 *Holders of too. Dec. 28 6*% preferred (guar.) •1* Jan. 2 *Holders of rec. Dec. 30 Gold Mining AreasGov. Dees Moines Gas,8% pref.(guar.) *51 Dec. 31 *Holders of roe. Dee. 18 Am.dep. rots, for registered shares.- '45 Jan. 29 *Holders of rec. Dee. 31 7% preferred (guar.) Am.dep. rag. for old reg. shares *87*0 Dec. 31 *Holders of roe. Dec. 18 Feb. 18 'Holders of rec. Dec. 31 *45 Electric Power & LightGrace(W.R.)& Co., common guar.)._ Ill Dec. 29 *Holders of rec. Dee. 28 Com, allotment ctfs. full paid (qu.)-- •12140 Feb. 1 *Holders of roe. Jan. 9 "3 Dee, 29 *Holders of rec. Dec. 28 6% Preferred Com,allotment cUs.90% paid (rm.).. "11)(0 Feb. 1 *Holders of rec. Jan. 9 Preferred A & B *4 Dee. 29 *Holders of rec. Dee. 28 Second preferred A (guar.) *1* Feb. 1 *Holders of reo. Jan. 9 Granite Gold Mining Colo.) gust.).... "lo Jan. 1 *Holders of roe. Dec. 23 El Paso Electric Co.(Del.) Pr. A (go.) •144 Jan. 15 *Holders of reo. Dec. 31 Gray & Dudley, com.-Div. omitted. PreferredB (guar.) •14i Jan. 1 *Holders of rec. Dee. 26 "1* Jan. 15'Holders of rec. Dec. 31 Preferred guar.) Harrisburg Gas. pref.(guar.) Great Lakes Steamship guar.) •1* Jan. 15 *Holders of reo. Dec. 31 *50c Jan. 2 *Holders of rec. Dec. 31 Hawaiian Electric (monthly) Guaranty Co.(N.J.) class A & B (go.).. *10e. Jan. 2 *Holders of rec. Dec. 21 "150. Jan. 20 *Holders of rec. Jan. 15 International Power of Canada, 1st pref. -Divi dead de[erred. Hercules Powder, Prof. (guar.) •1* Feb. 15 *Holders of tea. Feb. 4 Iowa Public Service, $7 first pt.(gu.) Hayden Chemical. pref.(guar.) "$1.75 Jan. 2 *Holders of rec. Dec. 19 *11.4 IJan. 2 *Holders of roe. Dec. 2P • 81.625 Jan. 2"Holders of tee. Dec. 19 $6.50 first preferred (guar.) Hibernia Securities Co., pref.(guar.).- •11.4 Jan. 1 *Holders of tee. Dec. 26 $6 first preferred (guar.) Honolulu Plantation (monthly) *31.50 Jan. 2 *Holders of reo. Dec. 19 *25e. Jan. 11 *Holders of rec. Dee. 31 117 second preferred (guar.) Horn & Hardart(N.Y.), corn.(guar.)._ *62* Feb. 1 *Holders of rec. Jan. 11 41.75 Jan. 2 *Holders of reo. Dec. 19 Lake Superior District Power (guar,)._. "2 Illuminating Shares Co., class A Jan. 15 *Holders of tee. Dec. 30 *50e. Deo. 31 *Holders of rec. Dec. 19. Lincoln Tel. & Tel., corn. (guar.) *1* Jan. 10 *Holders of tee. Dec. 31 Income Leasehold, common (guar.).- 37.4o. Jan. 1 *Holders of rec. Dec. 26 Lone Star Gas, pref.(guar.) Interallied Invest. Corp., class A 411.63 Feb. 1 *Holders of rec. Jan. 20 *35e. Jan. 15 *Holders of rec. Jan. 8 Maine Gas CoS., corn. (guar.) Intercontinental Invest. Corp., A (go.). *50e. Jan. 2 *Holders of rec. Dec. 18*50o. Jan. 15 *Holders of tee. Jan. 2 Common (extra) International Printing Ink, pref.(guar.). •1% Feb. 1 *Holders of reo. Jan. 16 *500. Jan. 15 *Holders of roe. Jan. 2 Preferred (guar.) Jamison •$1.50 Jan. 15 *Holders of reo. Jan. 2 Coal & Coke (guar.) *50e. Dee. 30 *Holders of tee. Dec. 3P Massachusetts MIL Associates, pf.(qu.) •6211e Jan. 15 *Holders of rec. Dec. Johnson Iron Works, Dry Dock & ShipMichigan Pub. dory.,$6 lull. prof. (au.) "31.50 Jan. 2 *Holders of tee. Deo. 31 building, pref. (guar.) 5 •2 *Holders of rec. Dee. 26 Jan. Middle West Utilities, eom.(in com.stk.) *jr2 Feb. 15 *Holders of rec. Jan. 15 Keith-Albee-Orpheum Corp., pref.-Div idend not d ared. 36 preferred (guar.) (2) Feb. 15"Holders of rec. Jan. 15 Kelley-Koett Mfg., pref.-Dividend om tted. Minnesota Northern PowerKnight-Campbell Music,7% prof.(go.). •114 Jan. 1 *Holders of tee. Dec. 15. Common (stock dividend) *11 Jan. 2 *Holders of rec. Dee. 16 KnudsenCreamery, class A & B (guar.) •3734e Feb. 20 *Holders of roe. Jan. 31 7% preferred (guar.) *I* Jan. 2 *Holders of reo. Dec. 15 Land Title Building (guar.) *51 Dec. 31 *Holders of reo. Dec. 15 6% preferred (guar.) •1* Jan. 2 *Holders of rec. Dee. 15 Lane Bryant, Inc., pref.(guar.) I* Feb. 1 Holders of rec. Jan. 15 Missouri Gas & Elec. Serf.. Dr. nen (gu.) 1* Jan. 15 Holders of roe. Dec. 31 Lane Co., common (guar.) • 1 yi Jan. 1 "Holders of rec. Dee. 26 Missouri Pub. derv.,$6 jun. pref.(qu.). 01.50 Jan. 15 Holders of tee. Dec. 31 Preferred (guar.) •1* Jan. 1 *Holders of rec. Dee. 26 $7 Preferred (guar.) $1.75 Jan. 1 Holders of no. Dec. 15 Lefeourt Realty Corp.,cow.(gust.) Feb. 15 *Holders of rec. Feb. 5 "40e. N. J. & Hudson River fly. & Ferry *3 Jan. 2 *Holders of tee. Dec. 31 Preferred (guar.) *75c. Jan. 15 *Holders of rec. Jan. 5 N.Y. Mutual Telegraph *75c. Jan 1 *Holders of ree Dec 31 Loomis-Sayles Mutual Fund (guar.)___ *60c. Jan. 2'Holders of rec. Dee. 1 North American Light & PowerLouisiana Nay.& Fish.(annual) Dec. 21 *6 Common (in common stock) */2 Feb. 15 *Holders of reo. Jan 20 Maciadden Publications, Inc., pref Jan. 22 Holders of rec. Dec. 31 $3 $6 preferred (guar.) "$1.50 Apr. 1 *Holders of rec. Mar.19 Major Corporation Shares 270. Dec. 31 Northwest Electric Co.7% pref. (go.). •1* Jan 2 *Holders of tee Dec. McCasky Register. 1st pref.(gust.) 18 1* Jan. 2 Holders of rec. Dec. 24 6% preferred (guar) "1* Jan 2 *Holders of roe. Deco 18 McLennan. MeFeely & Prior, 1st pf.(qm) •1* Jan. 2 *Holders of rec. Dec. 24 Northwest States Utilities,6% pf.(Qua- *134 Jan. 2 *Holders of reo. Dec. Medusa Portland Cement, pref. A (go.) •114 Jan. 1 *Holders of rec. Dec. 25 15 Norwood Gas, common Dee. 31 *Holders of rec. Dec. 17 *$2 Merchants Discount (guar.) •37•40 Dec. 31 *Holders of tee. Dee. 28 Old Colony Light & Power. prof.(guar.) •1* Jan. 4 Holders of rec. Merchants Refrig., common (extra) Dec. 17 "$1 Feb. 1 *Holders of reo. Jan. 21 Pacific Lighting Corp., coin.(gust.).... 75e. Feb. 15 Holders of tee. Jan. 20 Preferred (guar.) •1* Feb. 1 *Holders of rec. Jan. 21 Philadelphia Suburban Water,Prof.(go.) 1* Mar, 1 Holders of rec. Feb. 126 Metro Oil, Ltd., preferred *Holders of rec. Dee. 28 •154 Portland (Me.) Gas Light (guar.) 41.75 Dee. 31 "Holders of tee. Dec. 22 Meyer Blank° Co., pre/.(guar.) 1* Jan. 1 Holders of rec. Dee. 19. Railway dr Light Securities, corn. (au.). 50o. Feb. 1 Holders of tee. Jan. 15 Milburn (A.) Co.. pref. A (guar.) *Holders of roe. Dec. 31 81 Dec. •1* Preferred (guar.) 1* Feb. 1 Holders of too. Jan. 15 Preferred B (guar.) •17.441 Dec. 31 *Holders of rec. Dee. 3t Randolph & Holbrook Power & Mohawk Homestead Corp *Holders rec. Dee. 31 Jan. *3 of 2 Common (guar.) *710. Dee. 31 Holders of tee. Dec. 17 Moloney Electric, common A (goat.)... $1 Jan. 15 Holders of rms. Jan. 2. San Antonio Pub. derv.,8% pref.(gu.). •2 Deo. 31 *Holders of tee. Dee. 21 Mortgage Bond & Title. % prior pref.-Div idend o ratted. 7% preferred (guar.) "195 Dee. 31 *Holders of rec. Dec. 21 Morrison Cafeterias Cons., pref.(guar.). •1* Jan. 1 *Holders of roe. Dee. 24 San Diego Cons. Gas & Elee., pf. (4111.). I* Jan. 15 Holders of roe. Dec. 31 Morrie Co.. class A (guar.) *75o. Dec. 31 *Holders of rec. Dec. 21 Southern Berkshire Power & Elec .0$1 Dec. 31 *Holders of reo. Dec. 17 Muller Bakeries, 7% pref.(guar.) •114 Jan. 8 *Holders of rec. Dec. 30 Southern N. E. Telep. (guar.) *2 Jan. 15 *Holders of rec. Dec. 31 Murray (J. W.) Mtg., Prof.(guar.)._ *2 Jan. 2 *Holders of rec. Doe. 20 Tacony-Palmyra Bridge, Prof. (guar.).- •1* Feb. 1 *Holders of rec. Jan. 10 Myers Publishing Co., class A (guar.)._ *50c. Jan. 2 *i,ijers of rec. Dec. 31 Telluride Power Co., pref.(guar.) '1* Jan. 2 *Holders of rec. Dec. 31 National Carbon, pref.(guar.) Feb. 1 2 • ders of rec. Jan. 20 United Telephone (Kallerra). com• (:111..) *2 Jan. 15 *Holders of tee. Dee. 31 Nat. Guar.& Finance, 1st & 2d pf.(us!) *114 Jan. 1 National Shirt Shops, pref.-Dividend o muted Preferred (guar.) •155 Jan. 15'Holders of ree. Deo. 31 Vermont Lighting, pref. (guar.) National Title Guar.(Bklyn.)-Dividen d deferred, *1* Jan. 2"Holders of rec. Dec. 22 Union Telephone. pref. (guar.) Naumkeag Steam Cotton Co.(guar.).- 1 "42110 Jan. 15 *Holders of too. Dec. 31 Jan. 2 Holders of roe. Dec.J.23,1 Nehl Corp., first preferred-Dividend °mitt ed. Trust Company. Nelson Meat "$6 Jan. 2 *Holders of rec. Deer 15 Bank of Sicily Trust-Dividend action de (erred Extra "56 Jan. 2 "Holders of rec. Dec. 15 Newaygo Portland Cement,7% pf.(gu.) "111 Jan. 1 *Holders of rec. Dec. 25 New Jersey Zino (gust.) Miscellaneous, 50c Feb. 10 Holders of tee. Jan. 20a Adams (J. D.) Mfg.(guar.) Niagara Alkali, pref.(guar.) •1* Jan. 2 *Holders of rec. Dec. 23 *30c Feb. 1 *Holders of rec. Jan. 15 Alaska Juneau Gold Mining (qtr.) Norfolk & Washington Steamboat(go.) *3 Jan. 2 *1214e Feb. 9 *Holders of rec. Jan. 9 Allied Chernical & Dye,corn.(gust.).... $1.50 Feb. 1 Holders of rec. Jan. 11 North American Trust Shares *30o Dec. 31 Holders. of Coup. No.6 Aloe (A. S.) Co., corn (guar.) Northern Paper Mills, pref.(guar.)_ _ _ _ •134 Dec. 31 *Holders of rec. Dec. 23 130, Jan. 1 Holders of reo. Dec. 23 Northwestern Title Co.(Spokane) Preferred (guar.) Dee. 31 *Holders of tee. Dec. 31 1 Holders of rec. Dee. 23 *1 134 Jan [VOL. 134. FINANCIAL CHRONICLE 88 Name of Company. When Per Cent. Payable. Books Closed. Days Inaustoe. Miscellaneous (Concluded). *200. Jan. 20 *Holders of rec. Jan. 11 Onomea Sugar (monthly) Owl Drug, Preferred.-Dividend action de/err ed. *20e. Jan. 1 *Holders of rec. Dee. 31 Pacific Truck Service, corn. (quar.) *17%c Jan. 1 *Holders of rec. Des. 31 Preferred (guar.) Jan. 1 paragon Trading, pref. A *2 *1% Jan. 1 Preferred B and C Peaslee-Gaulbert Corp., pref.-Dividend deferr ed. Penman's Ltd., corn.-Dividend deferre d. 13,5 Feb. 1 Holders of rec. Jan. 21. Preferred ((Mar.) "1% Jan. 2 *Holders of reo. Dee. 21 Penn Federal Corp., Pref. Jan. 2 Holders of rec. Dee. 26 2 Penn Investment Co., pref 2 Jan. 2 Holders of ree. Dec. 26 Allotment certificates *1% Feb. 1 *Holders of rec. Jan. 20 Phillips-Jones Corp., pref.(quar.) *173,50 Dee. 31 *Holders of rec. Dec. 10 Pittsburgh Thrift, corn. (guar.) *1% Dee. 31 *Holders of rec. Dec. 10 7% preferred (quar.) 58 1-3c Jan. 1 Holders of rec. Dec. 25 Planters Realty, pref. (monthly) Pressed Metals of Amer., cons.(quar.)-- 13340. Jan. 2 Holders of rec. Dec. 15 *35c. Dec. 31 *Hold. of coup. No. 2 Primary Trust Shares, series A •250. Jan. 1 *Holders of ree. Dec. 19 Progress Laundry (quar.) *234 Dee, 30 *Holders of rec. Dec. 23 Providence Building *800. Jan. 2 *Holders of ree. Dec. 24 Publication Corp., corn.(quar.) •134 Jan. 2 *Holders of rec. Dec. 24 Original pref. (quar.) Jan. 2 Holders of rec. Dec. 8 334 Canada Estate Loan Co. of Real Reliable Stores Corp., 1st pref.(quar-)- - *134 Jan. 2 *Holders of rec. Dec. 26 Preferred A.-Dividend omitted. •100 Feb. 1 *Holders of rec. Jan. 15 Roos Bros.(Del.), corn. (quar.) Preferred (quar.) • 51.625 Feb. 1 *Holders of rec. Jan. 15 *31.50 Dec. 31 *Holders of rec. Dec. 21 St. Joseph Stock Yards (quar.) Schwartz(B.) Cigar, pref. A (guar.)---- *50c. Jan. 2 *Holders of rec. Dec. 19 Security Title Bldg., Los Angeles. p1. qu) $1.75J an. 1 *Holders of rec. Dec. 26 •50. Jan. 2 *Holders of rec. Dec. 23 Shareholders Corp.((Mar.) 5e. Dec. 31 Holders of rec. Dec. 24 Sheriff Street Market (Cleveland) Shuron Optical, Inc.. prior pref.(quar.)- •135 Jan. 2 *Holders of rec. Dec. 31 Jan. 1 "Holders of rec. Dec. 28 *51.25 let Southeastern Inv. Tr., $5 Of. (qu.) Southern Franklin Process, corn.(War.) •50c. Dec. 29 *Holders of rec. Dec. 24 •134 Jan. 11 *Holders of rec. Dec. 31 Preferred (quar.) Standard National Corp., Pref.(quar.)-- •13( Jan. 1 *Holders of rec. Dec. 28 50c. Dec. 31 Holders of rec. Dec. 28 Stein Cosmetics, Inc., pref.(quar.) *30e. Dec. 31 Super Corporation series C *2 2.345c Dec. 31 Series D Superior Port. Cement,class A (mthly.) "27%c Feb. 1 *Holders of rec. Jan. 23 *30c. Dec. 31 *Holders of rec. Dec. 31 Surety Credit, Inc., common *40c. Dee. 31 *Holders of rec. Dec. 31 Preferred *15c. Feb. 1 *Holders of rec. Jan. 16 Teck-Flughea Gold Mines (quar.) *900. Feb. 15 *Holders of rec. Feb. 5 cony. pref. (quar.) Thatcher Mfg. Jan. 1 *Holders of rec. Dec. 20 *2 Thompson & Co., Inc., pref.(quar.) *1734c Jan. 2 *Holders of rec. Dec. 21 Tilo Roofing Co.,common (quar.) *30e. Jan. 2 *Holders of rec. Dec. 21 Common (extra) *50e. Jan. 2 *Holders of rec. Dec. 21 Preferred (guar.) *251. Jan. 1 *Holders of rec. Dec. 20 Troy Sunshade (quar.) Jan. 2 *Holders of rec. Dec. 19 *33 Trusts & Guar., Ltd., Canada *1% Jan. 1 *Holders of rec. Dec. 18 Union Guar.& Mtge.(quar.) Mfg., pref .-Div. omitted. Metal Union Union Mtge. Co.(N. Y.),cam.& pref.- Divs. omitted *13( Jan. 2;Holders of rec. Dec. 18 Union Trust, Ltd.(Toronto)(quar.) United Finance & Realty Trust. pf.(qu.) *300. Jan. 10 *Holders of rec. Dec. 31 50c. Jan. 16 Holders of rec. Dec. 31 United Securities, Ltd. common U.S. Casualty-Dividend omitted. nd omi tted. Wetherill(Geo.D.) dr Co., pref Weyenberg Shoe Mfg., pref. (quar.)---- *134 Dec. 15 *Holders of rec. Dec. 5 *73.5c Jan. 30 *Holders of rec. Jan. 20 Wilcox-Rich Corp.. class 334 Feb. 15 Holders of rec. Jan. 15 Wilson Line, Inc., pref Woodward & Lathrop, COM.(quar.)_._._ *600. Dec. 30 *Holders of rec. Dec. 26 *134 Dec. 30 *Holders of rec. Dec. 26 Preferred (guar.) *50c. Dee. 31 *Holders of rec. Dec. 28 Woolson Spice, common (quar.) 4.1m Dec. 31 *Holders of rec. Dec. 28 Preferred (guar.) 1%*c Jan. 2 *Holders of rec. Dec. 15 Zinke Renewing Shoe, pref. (quar.) Below we give the dividends announced in previous weeks and not yet paid. This list does not include dividends announced this week, these being given in the preceding table. Name of Company. When Per Cent. PayaNe. Books Closed. Days Inclusive. Railroad (Steam). Feb. 13 Holders of rec. Jan. 8 Alabama Great Southern, preferred-- 32 434 Jan. 1 Holders of roe. Dec. 15 AJbany & Susquehanna Jan. 9 Holders of reo. Dec. 18 2 Extra 3 Jan. 1 Holders of reo. Dec. 19 Allegheny & Western, common 234 Feb. 1 Holders of reo. Dec. 310 Atch. Topeka & Santa Fe, pref *234 Jan. 1 *Holders of reo. Dec. 11 Atlanta Birmingham & Coast, pref 2 Jan. 11 Holders of ree. Dec. lie Atlantis Coast Line RR., cam *234 Jan. 5 *Holders of reo. De0. 15 Augusta dc Savannah •25e. Jan. 5 *Holders of reo. Dee. 15 Extra "1.58 Jan. 1 *Holders of reo. Dee. 20 Avon Geneseo & Mount Morris Mar. 1 Holders of reo. Jan. 180 1 Baltimore & Ohio, pref.(quar.) 870. Jan. 1 Holders of reo. Nov. 304 Bangor & Aroostook, corn.(qua?.) 154 Jan. 1 Holders of reo. Nov.80a Preferred ((Plan) 500. Jan. 2 Holders of rec. Dec. 15 Beeok Creek (quar.) Belt RR.&Stk.Yds.,Ind'p.com.&pf.(qu) *750. Jan. 1 *Holders of rec. Dee. 20 Boston & Maine, prior pref. (quar.)---- 1% Jan. 2 Holders of rec. Dec. 18 234 Jan. 2 Holders of reo. Dec. 19 Boston & Providence (quar.) 13.4 Feb. I Holders of rec. Dec. 280 Canada Southern Jan. 11 Holders of ree. Dec. 310 Carolina Clinchileld & Ohio,(quar.)---- 1 134 Jan. 11 Holders of rec. Dec. 31a Stamped certificates (quar.) Jan. 2 *Holders of reo. Des. 20 *51.20 Cayuga & Susquehanna Jan. 1 *Holders of ree. Des. 8 •3 Central Argentine By., 6% pref 75o. Jan. 1 Holders of reo. Dec. 8a Chesapeake Corporation (quar.) 62340 Jan. 1 Holders of rec. Dec. 8a Chesapeake e. Ohio. corn. (quar.) 334 Jan. 1 Holders of rec. Dec. 80 Preferred series A (quar.) h50c. Jan. 20 Holders of reo. Jan. 70 Chicago Great Western, preferred 154 Jan. 1 Holders of ree. Dec. 19 Cincinnati Union Terminal. Prof.(qu.) Cleve. Cin. Chic. & St. Louis. Pt.(qU.) *134 Jan. 30 *Holders of reo. Dec. 21 154 Jan, 2 Holders of reo. Dec. loa Coml.RR.'s of Cuba, pref.(mi.) 154 Feb. 1 Holders of reo. Jan. 154 Cuba ER.. pref.(quar.) *51 Jan. 5 *Holdera of rec. Dee. 15 Dayton & Michigan, pref.(quar.) Jan. 1 *Holders of rec. Dee. 18 .51 Delaware Jan. 5 Holders of rec. Dee. 19a 2 Detroit Hillsdale & Southwestern *51.61 Jan. 2 *Holders of rec. Dec. 19 Elmira & Williamsport, preferred 2% Jan. 5 Holders of roe. Jan. 1 Georgia RR.& Banking (quar.) *234 Jan. 15 *Holders of rec. Jan. 1 Quarterly Feb. 1 Holders of rec. Dee. 290 1 Great Northern preferred (quar.) Hudson de Manhattan, prof 234 Feb. 15 Holders of rec. Feb. la 2 Dee 12 to Jan. 4 Jan. 2 Illinois Central. leased lines Joliet & Chicago (quar.) 13.4 Jan. 4 Holders of rec. Dec. 26a Jan. 15 Holders of rec. Dec. 3I0 Kansas City Southern, pref.(quar.).. 1 Jan. 2 *Holders of rec. Dec. 9 Lackawanna RR. of N. J.(quar.) *1 $1.25 Jan. 2 Holders of rec. Dec. 12a Lehigh Valley, Pref. (guar.) Jan 15 Jan. 15 Dee. 12 to $1.11 Little Schuylkill Nov. RR.& Coal Feb. 10 Holders of roc. Jan. 15a 2 Louisville & Nashville Mahoning Coal RR., common (quarj_ _ 512.50 Feb. I Holders of ree. Jan. 110 Preferred *31.25 Jan. 2 *Holders of rec. Dee. 23 Michigan Central •525 Jan. 30 *Holders of rec. Jan. 2 Mobile & Birmingham, pref Jan. 2 Dec. 2 to Jan. 1 2 Morrie dr Essex $2.125 fan. 2 Holders of reo. Dec. 7a New Loudon Northern (guar.) *234 Jan. 2 *Holders of rec. Dec. 15 Extra •1 Jan. 2 *Holders of rec. Dec. 15 New York & Haien.), corn. & pret 32.50 Jan. 2 Holders of rec. Dee. 15a N. Y. Lackawanna & Western (quar.)-- 154 Jan. 2 Holders of reo. Dec. lea N.Y. N.H.& Hartford. pref. (quar.). _ _ 134 tan. 2 Holders of rec. Dec. 130 Feb. 19 Holders of ree. Jan. 30a Norfolk & Western, adj. pref. (quar.) 1 Northern Pecific (guar.) 75e. Ceb. 1 liolderi Of rec. Dec. 3la Northern RR. of New Hampshire (qu.)_ 134 Jan. 2 Holders of rec. Dee. 14 Northern Securities Co 434 Jan. 9 Dec. 19 to Jan. 10 Norwich dr Worcester, pref. Jan. 2 Holders of rec. Deo. 10 __ •2 Old Colon* (quar.) 13.4 Jan. 1 Holders of rec. Dee. 12 Philadelphia & Trenton (quar.) *215 Jan. 10 *Holders of reo. Jan. 1 Name of Company. Per When Cost. Payable. Rooks nesse. Days Isciastie. Railroads (Steam) (Conelsdea), Jan. S Holders of roe. Dee. 10e Pittsb. Ft. Wayne & Clue., corn.(quiz.) Jan. 5 Holders of roe. Dee. 10a Preferred (guar.) Feb. 1 *Holders of reo. Dec. 28 • Pittsburgh dr Lake Erie Jan. 2 Holders of rec. Dee. 15e Pittsburgh McKeesport & Youghiogheny Jan. 14 Holders of roe. Dec. 246 Reading Company, 2d pref. (quar.) Jan. 2 Holders of rec. Dec. 16a Rengselaer dr Saratoga Jan. 1 St. Louis Bridge, 1st pref Jan. 1 Second preferred Jan, 2 Holders of fee. Nov.244 Southern Pacific Co.(quar.) *2% Jan. 2 *Holders of reo. Dec. 1 Southwestern RR.of Georgia .334 Jan. 1 *Holders of rec. Dec. 20 Tennessee Central By.. 7% pref *3 Jan. 1 'Holders of rec. Dec. 31 Tunnel RR of St. Louis 334 Jan. 2 Holders of ree. Dee. le Union Pacific, corn.(quiz.) United N. J. R.R.& Canal (quar.)____ 235 Jan. 10 Dee. 20 to Jan. 9 +2% Jan. 2 *Holders of rec. Doe. 14 Valley RR. of N.Y. *334 Jan. 2 *Holders of reo. Dec. 31 Ware River. guaranteed $1.50 Jan, 2 Holders of rec. Dec. 15 West Jersey & Seashore, corn *51.50 Jan. 1 *Holders of reo. Dec. 31 Western N. Y.& Pennsylvania. corn •$1.25 Jan. 1 *Holders of ree. Dec. 31 Preferred Public Utilities. $1.75 Jan. 2 Holders of rec. Dec. 15 Alabama Power,$7 pref.(quar.) 31.50 Jan. 2 Holders of roe. Dee. 15 se preferred (quar.) $1.25 Feb. 1 Holders of reo. Jan. 15 55 preferred (quiz.) Allied Telephone Utilities, pref. (guar.). •43%c Jan. 1 *Holders of rec. Dec. 20 Jan. 16 'Holders of rec. Dee. 15 Amer. Dist.Teleg. Co.of N.J.,e0m.(QU.) •1 Preferred (quar.) *I% Jan. 15 'Holders of rec. Dec. 15 American & Foreign Power,$7 pref.(qu.) $1.75 Jan. 2 Holders of reo. Dee. 14a $1.50 Jan. 2 Holders of reo. Dec. 140 38 preferred (quar.) 250. Jan. 2 Holders of rec. Dee. 10 Amer. Gas & Electric. corn. (quar.) Jan. 2 Holders of roe. Dee. 10 Common (payable in common stook)-$1.50 Feb. 1 Holders of roe. Jan. 9 Preferred (quar.) Amer. Power & Light,$8 pref. (guar.).- $1.50 Jan. 2 Holders of rec. Dec. 14a 31.25 Jan. 2 Holders of rec. Dec. 146 35 preferred 1% Jan. 2 Holders of rec. Dec. 15 Amer. Public Service, pref. (quar.) American States Public Service, pf.(qu.) 411.50 Jan. 1 *Holders of rec. Dec. 23 Amer.Superpower Corp., lit pref.(qu.) $1.50 Jan. 2 Holders of ree. Dee. 10 $1.50 Jan. 2 Holders of rec. Des. 10 Preference (quar,) 2% Jan. 15 Holders of ree. Deo. 19a Amer. Telep. & Teletf.(quar.) Amer. Water Works & Elec., corn.(qu.) 75c. Feb. 1 Holders of rec. Jan. 8a 51.50 Jan. 2 Holders of reo. Dec. llo 56 first preferred (guar.) Appalachian Cleo. Pow.,$7 pref. RAO -- 41.75 Jan. 2 "Holders of reo. Dec. 5 *51.50 Jan. 2 *Holders of reo. Dec. 5 56 preferred (quar.) Jan. 2 *Holders of reo. Dec. 24 *2 Arizona Power,8% pref. (quar.) '134 Jan. 2 *Holders of roe. Dec. 24 7% preferred (quar.) 15e. Jan. 2 Holders of rec. Dec. 15 Arkansas Natural Gas, pref. (quar.)-Arkansas Power & Light, $7 pref. (q1.1.)- $1.75 Jan. 2 Holders of rec. Dec. 15 $1.50 Jan. 2 Holders of rec. Dec. 15 $6 preferred (quar.) (z) Feb. 1 Holders of rec. Dec. 30 Associated Gas & Elec.. el. A (quar.) $4 pf. (qu.) (cash or 1-70 eh. $5 pf.) 41 Feb. 1 Holders of rec. Dee. 30 •87%e Jan. 2 *Holders of rec. Nov.30 Original preferred (quar.) *$1.75 Jan. 2 *Holders of res. Nov.30 57 preferred (quar.) $1.625 Jan. 2 *Holders of rec. Nov.30 $6.50 preferred (quar.) *51.50 Jan. 2 *Holders of rec. Nov. 30 56 preferred (quar.) *41 Feb. 1 *Holders of rec. Jan. 30 $4 preferred (quar.) •80o. Jan, 1 *Holders of rec. Nov.30 Allotment certificate Jan. 1 *Holders of ree. Nov.30 •54 58 allotment certificates Jan. 1 Holders of roe. Des. 17 Associated Teter).& Toles., el. A (qu.)-. $1. 60e. Jan. 1 Holders of roe. D00. 17 Class A (extra) 51.50 Jan. 1 Holders of reo. Dee. 17 $6 first preferred (quar.) 1% Jan. 1 Holders of rec. Dec. 17 7% first preferred (quar.) Jan. 1 Holders of roe. Dec. 17 $1 $4 preferred (quar.) Associated Telep. Utilities, corn. (5111.)-- 12 Jan. 15 Holders of reo. Dee. 81 $1.60 Jan. 2 Holders of roe. Dee.)15 56 cony. Pre!. series A (quar.) *3 Jan. 2 *Holders of rec. Dee. 15 Attleboro Gas Light Corp. (quar.) •135 Jan. 1 *Holders of rec. Dec. 10 Bangor Hydro-Elec.,6% pref.(quar.) •1;i Jan. 1 *Holders of rec. Dec. 10 7% preferred (quar.) *21.60 Jan. 2 *Holders of rec. Dec. 22 Battle Creek Gas,$6 pref. (guar.) Jan. 15 Holders of rec. Dec. 23 2 Bell Telephone of Canada, (quar.) 1% Jan. 15 Holders of reo. Dec. 190 Bell Telephone of Pa., prof.(quar.) Binghamton Lt. lit. & Pow..$6 pf. (q11.) *11.50 Jan. 2 *Holders of ree. Nov.30 *$1.25 Jan. 2 *Holders of roe. Nov.30 $5 preferred (quar.) Birmingham Electric Co., 57 pref. (qu.) $1.75 Jan. 2 Holders of rec. Dec. 19 $1.50 Jan. 2 Holders of ree. Dec. 19 $6 preferred (quar.) $1.25 Jan. 2 Holders of reo. Dec. 10 Breton Elevated Sty.. corn.(qu.) Brazilian Tr. Lt. dr Pow.. pref.(quar.)-- SI% Jan. 2 Holders of rec. Dec. 15 *40o. Jan. 15 "Holders of reo. Dee. 31 Bridgeport Hydraulle (guar.) Brit. Col. El.Power & Gas,6% pf.(qu.) •154 Jan. 1 *Holders of rec. Dec. 19 British Columbia Power, Ltd., el. A (qu) 50o. Jan. 15 Holdera of roe. Dec. 31 Brooklyn Borough Gas, corn. (quar.).._ *51.50 Jan. 10 *Holders of rec. Dec. 81 •75o. Jan. 2 *Holders of reo. Dec. 21 6% participating pref. (quar.) •6%0. Jan. 2 +Holders of rec. Dec. 21 6% participating pref. (extra) Brooklyn & Queens Transit. Prof.(en.)- 134 Jan. 2 Holders Of rec. Dee 151 Jan. 16 Holders of rec. Dec. 31.0 Brooklyn-Manhattan Transit. com.(qu.) $1 $1.50 Jan. 15 Holders of rec. Dec. 31a Preferred series A (qnar.) 51.50 Arm. 16 Holders of res. Apr. lo Preferred series A (qua?.) $1.25 ran. 2 Holders of rec. Dec. lo Brooklyn Union Gae (quar.) Buff. Niagara & East.Power•$1.25 Feb. 2 *Holders of roe. Jan, 15 First preferred (qua?.) •400. Jan. 2 *Holders of roe. Dee. 15 Preferred (quar.) Calgary Power Co.. Ltd.. corn.(quar.)_. 134 fan. 2 Holders of rec. Dec. 15 California Eleo. Generating, pf. (qu.)... •134 Jan. 2 *Holders of rec. Dec. 5 20o. Jan. 25 Holders of reo. Dec. 31 Canada No.Pow. Corp., corn.(qu.). 1% Jan. 15 Holders of rec. Dee. 31 7% preferred (quar.) 50o. Jan. 1 Holders of reo. Dec. 14 Traction, Capital Wash., D.C.(MO Carolina Power & Light.$7 pf. - - -- $1.76 Jan. 2 Holders of tee. Dec. 12 51.50 Jan. 2 Holders of rec. Dec. 12 $8 preferred (quar.) Central Hudson Gas & El., corn (qu.)._ •200. Feb. 1 *Holders of rec. Dec. 31 •$1.30 Jan. 1 *Holders of rec. Dec. 19 Preferred (quar.) Central Illinois Light CO.,6% pf.(quiff.) 1% Jan. 2 Holders of rec. Dec. 15 1% Jan. 2 Holders of rec. Dec. 15 7% preferred (guar.) 31.50 Jan. 15 Holders of tee. Dec. 81 Central His.Public serv.26 Of.(qu.)_ •1% Jan. 1 *Holders of tee. Dec. 10 (quar.). Maine Power, 6% pref. Central *31.50 Jan. 1 *Holders of ree. Dec. 10 58 preferred (quar.) Ian. 1 *Holders of reo. Dee. 10 7% preferred ((lulu%) 1% Jan. 15 Holden; of reo. Dee. 31 Central Power CO., 7% Pref.(Quar.)-134 Jan. 15 Holders of roe. Dec. 31 6% Preferred (Quar.) Central Public Service Corp.$1.75 Jan. 1 Holders of reo. Dee. 12 $7 preferred (quar.) 51.60 Jan, 1 Holders of rec. Dec. 12 $6 preferred (quar.) Jan. 1 Holders of rec. Dee. 12 114 preferred (quar.) 81 Central & S. W.TRH.,corn. (in corn stk ) 1134 Jan. 15 Holders of rec. Dec. 31 Central States Power & Lt., pref.(qu.)_ •51.75 Jan. d2 *Holders of roe. Dee, 5 Central States Utilities, pref. (quar.)--- *51.75 Jan. 2 •Holdera of ree. Dec. 5 *3734e Jan. 15 *Holders of rec. Jan. 8 Chester & Philadelphia By.(quar.)_ _ Cincinnati Gas & Electric, pref. (quar.). •1% Jan. 2 *Holders of rec. Dec. 15 Cln. Newp.& Coy. Lt.& Tr., corn.(qu.) •$1.50 Jan. 15 "Holders of rec. Dec. 31 $1.125 Jan. 15 *Holders of rec. Dec. 31 Preferred (quar.) Cincinnati Street Hy., corn. (guar.).--- *50e. Jan. 1 *Holders of rec. Dee. 24 Cincinnati & Sub. Bell Teter). (quar.)-- "31.12 Ian. 2 *Holders of roe. Dec. 18 581.0. Jan. 15 Holders of roe. Dec. 810 Cities Serv. Pow.& Lt.$7 Pt.(mthly.) 50e. Jan. 15 Holders of rec. Dec. 31a 56 preferred (monthly) 812-3c Jan. 15 Holders of ree. Dec. 810 preferred (monthly) $5 58 1-3c Feb. 15 Holders of rec. Feb. 1 $7 preferred (monthly) 50e. Feb. 15 Holders of rec. Feb. 1 $8 preferred (monthly) 41 2-3c Feb. 15 Holders of reo. Feb. 1 $5 preferred (monthly) Citizens Passenger RY.(Philadelph la) _ _ _ 43.50 Jan. 1 Dec. 22 to Jan. 1 *Holders of rec. Dec. 21 Citizens Water (Wash., Pa.) prof. (on.) 4.13.4 Jan. 2 *40c. Jan. 1 *Holders of rec. Dec. 19 Cleveland Elec. Ill., corn.(quar.) 1% Mar. 1 Holders of rec. Feb. 150 Preferred (guar.) 1% Jan. 1 Holders of rec. Dec. 28a Cleveland Railway ((Nan) .4% Jan. 15 *Holders of rec. Jan. 2 Clinton Water Works. 7% pf. (eu.)_ _ Columbus Del.& Marion Elec.57 Pf (.711) .$1.75 Jan. 1 *Holders of rec. Dec. 19 Columbus By. Power & Light*13.4 Jan. 2 *Holders of reo. Dec. 15 6% 1st preferred (guar.) Commonwealth Telep.(Pa.),6% pf.(qu) •135 Jan. 15 150. Mar. 1 Holders of rec. Feb. 5e Commonwealth & Southern Corp., oom 51.50 Jan. 2 Holders of roe. Dee. ets a6 preferred (guar.) Commonwealth Utilities, pf. A (quar) *51.75 Jan. 2 *Holders of reo. Deo. 19 •41.50 Jan. 2 *Holders of reo. Deo. 19 Preferred B (guar.) Commonwealth Water & Light, pt. (qtr.) *134 Jan. 2 'Holders of rec. Dec. 21 Name of Company. 89 FINANCIAL CHRONICLE JAN. 2 1932.] When Pot Cent. Payable. Books Closest Days Inclusive. Name of Cornvanti. Per When Cent. Payable. Books Closed. Days Incbaits. ---Public Utilities (Continued). Public Utilities (Continued) Kansas City Power & Lt., 1st pt. 13 (011.) $1.50 Jan, 1 Holders of rec. Dee. 148 rec. Dec. 21 Community Telephone Co., pref.(quar.) .50e. Jan. 2 *Holders of "$1.75 Jan. 2 *Holders of rec. Dec. 19 Power, $7 pref. (guar.) Kansas Dec. 15 'Holders of rec. Jan. 1 *75c. Conn. Electric Sere.. corn.(guar.) 511.50 Jan. 2 *Holders of rec. Dec. 19 $6 preferred (guar.) Consolidated Gas(N.Y.),$5 pref.(qu.)- $1.25 Feb. 1 Holders of rec. Dee. 280 Kentucky Pewer Co.. 8% pref.(qu.)_ Jan. 2 'Holders of rec. Dee. 15 Bait. Pow., L. & Elec. Consol. Gas, "154 Jan. 2 'Holders of rec. Dec. 15 Dec. 15 7% preferred (guar.) *Holders of tee. Jan. 2 •90e Common (gnar.) Jan. 2 *Holders of rec. Dec. 15 631% preferred (guar.) '13.1 Jan. 2'Holders of rec. D. 15 5% preferred series A (guar.) Kentucky Securities Corp., corn. (quar.) 151 Jan. 2 Holders of rec. Dec. 19a Jan. 2 *Holders of roe. Dee. 15 6% preferred series D (Ouar.) 134 Jan, 15 Holders of tee. Deo. 19a Preferred (quar.) *155 Jan. 2 'Holders of rec. Dee. 15 531% preferred series E (quar.) 155 Jan. 15 Holders of rec. Dec. 26 Kentucky Utilities, pref. (Ouar.) Jan. 15 *Holders of rec. Dec. 31 Consolidated Traction of New Jersey-- *2 •70c Tan. 1 'Holders of roe. Dec. 15 $2.80 pref.(qua Pub. Serv., Keystone 15 of rec. Dec. Holders 215 Jan. 2 (guar.) (Toronto) Consumers Gas • 75e. Feb. 1 'Holders of reo. Jan. 21 (qu) pt. of Phila., 53 •15i Telephone Keystone Dee. ree, 15 Jan. 2 *Holders of Consumers Power, 7% pref.(quar.) Kings County Ltg., common (guar.)-- •$1.50 Jan. 1 *Holders of reo. Dee. 18 "1.8 Jan. 2 "Holders of rect. Dee, 15 6.6% preferred (quar.) . 1% Jan. 1 'Holders of rec. Dee. 18 •134 Jan. 2 *Holders of roe. Dee. 15 preferred 7% (guar.) (ouar.) 8% preferred •1% Jan. 1 *Holders of tee. Dec. 18 5% preferred (lust.) Jan. 2 "Holders of reo. Dee. 15 $8 preferred (quar.) •154 Jan. 2 "Holders of rec. Dec. 24 Lake Erie Power & Light, pref.(quar.) •650 Jan. 2 *Holders of tea. Deo. 16 6.5% preferred (monthly) Jan. 2 'Holders of rec. Dee. 15 "52.50 Co Water Lenox 6% preferred (monthly) *Holders of rec. Dee. 15 Jan. 2 .150e Jan. 15 Holders of rec. Dec. 81 "154 (quar.) Lexington Telep., 634% Pref. $1.2. Apr 1 Holders of rec. Mar. 15 $5 preferred (guar.) 50c. Jan. 10 Holders of rec. Dec. 31 Lincoln Securities, class A Mara Telep. rec. Mar. 15 Holders of Apr. 1 131 preferred (guar.) 6% Jan. 10 Holders of rec. Dee. 31 dl5c Class B (guar.) 1.65 Apr. 1 Holders of rec. Mar. 15 6.6% preferred (guar.) 134 Jan. 10 Holders of rec. Dec. 31 Preferred Mara Holders of rec. Mar. 15 1% Apr. 7% preferred (quar.) 151 Jan, 1 Holders of reo. Dee. 16 Long Island Ltg.. 7% pref. ser. A 0.111•/ Jan. 15 Holders of rec. Feb. 50e. 6% preferred (monthly) 135 Jau. I Holders of rec. flee. 16 8% preferred series B (guar.) Holders of rec. Feb. 15 50e. Mar. 6% preferred (monthly) 'Si Jan. 2 *Holders of rec. Dec. 19 Lowell Gas Light, corn. (gust.) Holders of rec. Mar. 15 60e. Apr. 8% preferred (monthly) 1 Jan, 2 Holders of rec. Dee. 18a pref. (quar.) Companies, Mackay Jan. 15 Holders of rec. 550. Feb. 8.6% preferred (monthly) Jan. 2 "Holders of rec. Dec. 19 '2 Manchester Gas, corn.((Mara Holders of rec. Feb. 15 55e. Mar. 6.6% preferred (monthly) •154 Jan. 2 "Holders of rec. Dec. 19 Preferred (guar.) Mar. 15 Ifolders of rec. Apr. 55e preferred 8.8% (monthly) Jan, 2 Holders of rec. Dec. 180 154 (guar.) guar. Re., 7% Manhattan Continental Gas & Elec., com.(oust.) $1.10 Jan. 2 Holders of rec. Dec. 12 "20c Jan. 1 'Holders of rec. Dee, 15 Maritime Tel. de Tel..COM.(gum.) $3.60 Jan. 2 Holders of rec. Dee, 12 Common (extra) Jan. 1 *Holders of rec. Dee. 15 *1755c (punt.) preferred 7% of rec. Dee. 12 Holders 2 Jan. (I) Special (1-5 share corn, stock) Jan. 15 *Holders of tee. flee. 26 Moss. Lighting Cu,.,8% pref. (oust.).... "2 131 Jan. 2 Holders of roe. Dee, 12 Prior preferred (guar.) "115 Jan. 15 'Holders of rec. Dec. 28 8% preferred (ouar.) Continental Telephone, 7% pref. (qui_ .131 Jan. 2 *Holders of roe. Dee, 15 Jan. 15 Holders of rec. Dec. 81 15e corn. Memphis Natural (quar.).1.154 Gas, *Holders of reo. Dec. 15 Jan. 2 631% preferred (guar.) $1.7 Jan. 1 Holders of rec. Dec. 19 $7 preferred (guar.) Dayton Power & Light, pref. (monthly) "500. Jan. 1 "Holders of rec. Dec. 20 $1.7 Jan, 2 Holders of tee. Dee. 12 Power & Memphis Light, $7 pref. (Qui Holders of tee. Dee, 150 Jan. 2 25e. Denver Tramway Corp., pref.(quar.) $1.50 Jan. 2 Holders of rec. Dec. 12 36 preferred ((luar.) 2 Jan. 15 Holders of tee Dee, 21, Detroit Edison CO.(quar.) Metropolitan Edison Co.,$6 pref.(Qui - "31.60 Jan, 1 *Holders of rec. Nov.30 *155 Jan. 15 "Holders of tee. Dee, 19 Diamond State Telco.,634% pf.(qu.) Jan. 1 'Holders of rec. Dec. 17 '735c Metropolitan Gas & Elec. (ouar.) Holders of tee. Dee, Jan. 2 15 131 Duke Power, corn. (oust.) 135 Jan. 2 Holders of rec. Dee. 15 Michigan Elec. Power,8% pref.(qua Si Jan. 2 Holders of roe. Dec. 15 Preferred (guar.) 151 Jan. 2 Holders of rec. Dec. 15 7% preferred (guar.) Jan. 15 Holders of tee. Dee. 31a 1 Duquesne Light, 1st pref. (oust.) 155 Jan. 2 Holders of rec. Dee. 15 Michigan Pub. Serv.,6% pref.(quar.) 1 Holders of rec. Dee, 15 Eastern Gas & Fuel Assoc.. Pr. Pf•(Qua- 135 Jan 151 Jan. 2 Holders of rec. Dec. 16 7% preferred (quar.) 115 Jan. 1 Holders of reo. Dee. 15 6% preferred (emir.) "IN Jan. 1 'Holders of rec. Dee. 20 Middle States Telephone, 7% pf. (qua 1 Holders of rec. Jan. Feb. 3.40 11 (quar.) Edison Elec. III., Boston Jan. 2 *Holders of roe. Dec. 21 5354 Middlesex Water. pref f134 Jan. 15 Holders of tee. Dee. 6 Electric Bond & Share, corn.(quar.) 151 Jan. 6 Holders of rec. Dee. 22 Midland Utilities Co.,7% prior lien (qua $1.50 Feb. 1 Holders of roe. Jan. 9 $8 preferred (guar.) Jan. 6 Holders of tee. Dee. 22 155 prior lien 8% Holders of Feb. 1 rec. Jan. 9 (guar.) $125 $5 preferred (quar.) 13.1 Jan. 6 Holders of rec. Dec. 22 7% preferred A (guar.) *25e. Feb. 1 *Holders of rec. Jan. 9 ElectriePower & Light. corn.(quar.) _ 115 Jan. 6 Holders of rec. Dee. 22 6% preferred A (guar.) $1.75 Jan. 2 Holders of tee. Dee. 12, $7 preferred (quar.) 134 Feb. 1 Holders of ree. Jan. 208 $1.50 Jan. 2 Holders of rec. Dee. 12, Milwaukee Elec. Ry.& Light, pref.(qua $8 preferred (quar.) 151 Jan, 2 Holders of ree. Dee. 15 Pref. al,otment Mts. full paid (MI.)- 151 Jan. 2 Holders of tee. Dec. 12a Minn. Power & Light,7% pref.(qua$1.50 Jan. 2 Holders of tee. Dec. 15 $6 Preferred (oust.) Pref. allotment Ws.90% paid (qU.)-- 1.575 Jan. 2 Holders of rec. Dec. 120 Jan. 2 Holders of nee. Dee. 19 $1.75 Mississippi *Holders Power Co.. $7 pref. (qua of rec. Dec. 29 fan. 2 •1 Elizabethtown Consol. Gas (quar.)-$1.50 Jan. 2 Holders of rec. Dec. 19 $6 preferred (guar.) 50e an. 2 Holders of reo. Dee. 150 Empire District El. Co.,6% pt.(mthly.) Jan. 2 'Holders of tee. Dee. 15 . 1% (quar.) Mississippi River Power, pref. Holders of 1 rec. Jan. 15 Feb. 50c. (mthly.) preferred 6% I 602-3e fan. 2 Holders of rec. Dee, 15o Mississippi Valley Pub.Serv.. pref.H(qu) *1)i Jan. 1 "Holders of rec. Dec. 21 Empire Gas & Fuel.8% pt.(mthly.) $1.7 Jan, 1 Holders of rec. Dec.d19 Missouri Edison Co., pref. (quar.) 58 1-3c Jan. 2 Holders of roe. Dec. 15a 7% preferred (monthly) Holders of tee. Dee. 15, Missouri River-Sioux City Bridge54 1-6c 634% (monthly) $1.7 Jan. 15 Holders of rec. Dec. 31 Preferred (guar.) 2 Holders of tee. Des. 15a 50e Jan preferred prefd6% (monthly) $1.75 Feb. 1 Holders of too. Jan. 15 Mohawk Hudson Pow. p1.(qua 602-3c Feb. 1 Holders of roe. Jan. 15a 8% preferred (monthly) $1.76 Jan. 2 Holders of roe. Doe 15 Second preferred (guar.) Holders of recs. Jan. 15a 68 1-3c Feb. 1 7% Preferred (monthly) Monongahela Valley Water,7% pf.(qu.) '151 Jan. 15 *Holders of rec. Jan. 2 54 1-13c Feb. 1 Holders of rec. Jan. 15a 815% preferred (monthly) Jan. 1 Holders of reo. Dee. 15 4351o. Monongahela W tee. Penn.Pub.Ser.pf. (au.) Holders of Jan. 150 1 Feb. 50c. 8% preferred (monthly) "25c. Jan. 2'Holders of rec. Dec. 14 Montana & Power Co. (quar.) $1.50 Ian. 1 Holders of reo. Dee. 16 Empire Power Corp.,$6 pref.(qua 38e. Jan. 31 Holders of rec. Dec. 31 Montreal L. H. de P. Consol.(quar.) 56s. Jan. I Holders of rec. Dee. 16 Participating stock 80c. Jan, 15 Jan. 1 to Jan. 15 40e. Jan. 2 Holders of rec. Dee. 174 Montreal Telegraph (Elmira Engineers Public Serv..(tom.(qu.) 255 Jan. 15 Holders of rec. Jan. 7 $1.50 Jan. 2 Holders of roe. Dec. 17, Montreal Tramways guar.) $13 preferred (ouar.) 151 Jan. 20 Holders of rec. Dec. 31 $1.375 Jan. 2 Holders of tee. Dee. 174 Mountain States Power. pref. (quar.) 5515 preferred (quar.) Jan. 15'Holders of tee. Des, 31 $1.25 Jan. 2 Holders of tee. Dee. 17a Mountain States Tel. & Tel. quar.) 55 preferred (quar.) Municipal Service Corp., corn.(quar.)_ _ "38c. Jan. 1 *Holders of rec. Doe. 15 English Elec. Co. of Canada, el. A (qua 75c. Jan. 15 Holders of rec. Dec. 31 •60e. Jan. 15 'Holders of ree. Dec. 15 Common (extra) *60o. Jan. 2 *Holders of rec. Dee. 15 Fall River Electric Light (guar.) 154 Jan, 1 Holders of rec. Dec. 16 Federal Light & Tract., corn (quer.). -- 3754e. Jan. 2 Holders of roe. Dec. 14, Nassau & Suffolk Ltg., 7% prof. (qu.) Jan. 2 Holders of rec. Der. 14, NationalElectric Power, coin. A (quar.) "45e. Feb. 1 "Holders of rec. Jan. 8 11 Corn.(Payable in corn. stook) Jan. 1 Holders of roe. Dee. 10 131 (guar.) 7% preferred *Holders Dec. of rec. 31 16 Jan. pref. (quar.)____ •144 Federal Public Service. 131 Jan. 1 Holders of rec. Dec. 10 8% preferred (Oust.) Florida Power & Light, pref.(oust.) ___ 151 Jan. 2 Holders of rec. Dee. 22 National Power & Light,$6 pref.(guar.) $1.50 Feb. 1 Holders of rec. Jan. 9 1 Holders of rec. Dec. 20 Foreign Light & Power, $6 Pref.(quar.). $1.50 Jan 60c. Jan, 15 Holders of rec. Dec. 10 National Public Service, corn. H (spec.).. Foreign Power Securities, 8% pref.(q) 155 Feb. 15 Holders of rec. Jan. 31 131 fan, 1 Holders of tee. flee. 10 Preferred (guar.) Jan. 15 *Holders of rec. Dec. 31 "4 Gardner Electric Light, common Feb. 1 Holders of rec. Dec. 500 Nevada-California Electric, prof. guar.) 13.4 "Holders of rec. Dec. 16 2 Jan. "235 County Gas & Electric Co. of Bergen •235 Jan. 2 'Holders of rec. Dee. 21 50c. Jan. 2 Holders of rec. Dec. 150 Newark Consol. Gas Gas & Elec.Secure. Co.,corn.(mthly.)_ _ Jan. 2 Holders of rec. Dec. 150 New Brunswick Lt., Ht.& Pow. pf.(qua "215 Jan. 2 *Holders of rec. Dec. 21 Corn.(payable In corn. stk.)(mthly.). •20e. Jan. 15 *Holders of rec. Dec. 31 58 1-3e Jan. 2 Holders of rec. Dec. 15a New Brunswick Telep. quar.) Preferred (monthly) New England Gas & Elec. Assoc.015 Jan. 2 Holders of rec. Dec. 15a Gas Secure. Co.coin. On scrip)(mthly.). $1.375 Jan, 2 Holders of rec. Nov.30 35.50 preferred (guar.) 50c. Jan. 2 Holders of rec. Dec. 15a Preferred (monthly) .11.7; Jan. 2 *Holders of rec. Nov.30 $7 second preferred (guar.) General Gas & Elec. Corp.. a.m. A (qua (n) Jan. 2 Floldera of reo. Nov. 30o *500 Jan, 15 *Holders of rec. Dee. 31 New England Power Assn (guar) (n) Jan. 2 Holders of tee. Nov. 30a Common class B (quill.) 6% preferred (oust) '13.4 Jan, 2 *Holders of tee. Dec. 10 $1.75 Jan. 2 Holders of tee. Nov. 30s $7 preferred (quer.) *50c. Jan, 2 *Holders of rec. Dee. 10 preferred (guar.) $2 Jan. 2 Holders of reo. Nov. 30o $2 58 preferred (guar.) New England Power Co., pref.(quar.)-- •1k6 Jan. 2 *Holders of rec. Dec. 10 Georgia Power Co., Pi pref. (quar.)..... 51.50 Jan. 1 Holders of roe. Dec. 15 England Publin Service Co. New Holders of rec Dec. 15 Jan. 1 $1.25 $5 preferred (((liar.) $1.75 Jan. 15 Holders of rec. Dec. 31 57 preferred (guar.) 115 Jan. 2 Holders of rec. Dec. 310 Gold & Stock Telegraph (oust.) 31.50 Jan. 15 Holders of rec. Dec. 31 $6 preferred (ouar.) Great West. Pow. Wald.)7% DI.(Qui *IX Jun. 2 *Holders of ref). Dec. 5 51.75 Jan. 15 Holders of rec. Dec. 31 Adjustment preferred (guar.) 6% preferred (guar.) •131 Jan. 2 'Holders of rec. Dec. 6 51.50 Jan. 15 Holders of rec. Dec. 31 58 convertible preferred (quar.) Greenwich Water & Gas.6% pf.(qui •134 Jan. 2 *Holders of rec Deo 21 .2 Jan. I *Holders of rec. Dec. 15 New II mg/shire Power, pref. (guar.). Gulf Power, $6 preferred (guar.) 51.50 Jan. 2 Holders of rec. Dec. 15 Jan. 2 *Holders of rec. Dee. 16 512 New Haven Water 145 Feb. 1 Holders of rec. Jun. 16 Hamilton Bridge. Prof.(guar.) *151 Jan. 2 *Holders of rec. Dec. 21 N. J. Water Co. nref. (guar.) Havana Elec.& Utilities. 1st p1.(qu.) $1.50 Feb. 15 Holders of rec. Jan. 14 New Orleans Public Service, pref. (qu.) $1.75 Jan. 2 Holders of rec. Dec. 21 $5 preferred (guar.) $1.25 Feb. 15 Holders of rec. lan. 14 New York Power & Light. 7% of• (9,1.)- '154 Jan. 2 *Holders of roe. Dec. 16 57e. Jan. 2 Holders of rec. Dec. 22 Haverhill Gas Light (guar.) "31.50 Jan. 2 "Holders of rec. Dec. 16 $6 preferred (guar.) Home Tel. & Tel. (Ft. Wayne) New York A Richmond Gas,6% p1.(qu) '131 Jan. 1 *Holders of rec. Dec. 15 Jan. 2 *Holders of rec. Dec. 20 7% Preferred (ouar.) 31.75 Jan. 2 Holders of rec. Dee. 15a New York Steam,$7 pref. (guar.) Jan. 15 *Holders of tee. Dec. 31 Illinois Commercial Telep.,$8 pref.(qua $1.50 Jan. 2 Holders of rec. Dee. 15a $8 preferred (ouar.) Jan. 1 $7 preferred (Oust.) 1% Jan. 15 Holders of rec. Dec. 19 New York Telephone,634% Pref.(qu.) Illinois Pow. A I,t. Corp.,6% M.(qu.) Jan, 2 Holders of rec. Dec. 10 56 preferred (guar.) orth Amer. Co. corn. On corn,8th.)... f231 Jan. 2 Holders of rec. Dec. 5a Feb. 1 Holders Of roe. Jan. 6 75c. Jan. 2 Holders of rec. Dee. 5a Illinois Power Co., 8% pref. (guar.).Preferred (guar.) Jan. 2 Holders of rec. Dee. 15 North Amer. Light & Pow.,$8 pref.(qua $1.56 Jan. 2 Holders of tee. Dee. 19 Jan. 2 Holders of roe. Dee. 15 7% Preferred (guar.) Illinois Traction. 6% pref. (oust.) North Continent UHL,corn. A (qua - - '373'4c Jan. 2 *IMIders of rec. Dec. 15 Jan. 2 "Holders of rec. Dec. 19 *151 Jan. 2 *Holders of rec. Dec. 15 Jan. 2 'Holders of rec. Dee. 5 7% preferred (guar.) Indiana General Service, pref. (quar.)_ _ *155 Jan. 2 'Holders of rec. Dec. 15 Indiana & Michigan Elec., 7% p1.(qui ran. 2 'Holders of rec. Dee. 5 8% preferred (quit.) •151 Jan. 2 *Holders of rec. Dec. 10 •1 Jan. 2 *Holders of tee. Dee. 5 6% preferred (guar.) North Shore Gas. pref,(guar.) !,.5 Jan. 2 *Holders of rec. Dec. 5 *134 Apr. 1 'Holders of rec. Mar. 10 Indianapolis Power & Lt.,6% pt.(qu.)_. Preferred (Ouar.) •15.4 Jan. 2 *Holders of rec. Dee. 5 (I 55% preferred (guar.) '134 July 1 "Holders of rec. June 10 Preferred (quar.) •1% Oct. 1 'Holders of roe. Sept. 10 Indianapolis Water (10 pref. A (oust.) 1.4 Jan. 1 Holders of reo. Dec. 120 Preferred (guar.) 151 Jan. 2 Holders of rec. Dec. 15 North West Utilities Co.. 7% Pr. Pf.(qu.) 1% Jan. 2 Holders of rec. Dec. 15 Inland Power & Light, 7% pref.(gnar.)_ Northeastern Pub.Serv..pf.(qu.)(No. 1) 3731e Jan. 1 Holders of rec. Dec. 5 Internat. Hydro-Elec. System, el A (ou.) (4) Jan. 15 Holders of red. Dee. 28a 51.375 Jan. 1 Holders of reo. Dee. 5 Jan. 8715 e 15 Prior preferred (guar.)(No. 1) convertible preferred (guar.) Holders of tee. Dec. 280 $3.50 131 Jan. 14 Holders of rec. Dec. 31 *155 Jan. 2 *Holders of rec. Dec. 31 Northern Indiana Pub. Serv.7% p1. Wu/ International Ocean Teleg. (guar.) 131 fan. 14 Holders of rec. Dec. 31 25c Jan. 2 Holders of rec. Dec. 18 6% preferred (guar.) International Superpower (guar.) 1% Jan. 14 Holders of rec. Dec. 31 15e bin 15 Holders of rec. Dec. isa 534% preferred (guar.) Intermit. Telep. Teleg.(guar.) *23.4 Jan. 15 *Holders of rec. Dec. 31 Northern N. Y. Telephone Mara Internat'l Utilities $7 prior pref. (quar.). *51.75 Feb. 1 *Holders of reo. Jan. 15 Holders of rec. Jan. 11 151 Feb. Northern N. Y. Utilities. pref. (gnar.) '8754e Feb. 1 'Holders of rec. Jan. 15 $3.50 prior preferred (quer.) 60c Jan. 25 Holders of rec. Dec. 31 Northern Ontario Power. Ltd., com.(qu) *435ic Jan. 15 *Holders of rec. Dec. 30 $1.75 preferred (quar.) 134 Jan. 25 Holders of rec. Dec. 31 8% preferred (quer.) Interstate Power Co.. $6 pref.(quar.) '51.50 Jan, 2 *Holders of rec. Dec. 5 Feb. 1 Holders of rec. Dec. 31 '$1.75 Jan. 2 *Holders of tee Dee. 5 Nor.States Power (Del.), corn. A (guar.) 2 $7 preferred (guar.) 151 Jan. 20 Holders of rec. Dee. 31 '154 Jan. 1 "Holders of rec. Dec. 15 7% preferred (guar.) Iowa Electric, 7% pref. A (goan) 155 Jan. 20 Holders of rec. Des. 31 Jan. 1 8% (guar.) '155 *Holders of rec. preferred Dec. 15 preferred B (Ouar.) 634% 1.14 /an. 1 Fielders of rec. Dec. 16 Jan. 2 *Holders of rec. Dee. 15 North port Water Works, Prof. (gnat.). Iowa Power & 1-ight. 7% Pref.(quar.).. 13.4 Jan. 15 Holders of rec. Dee. 19 '131 Jan. 2 *Holders of rec. Dec. 15 Northwestern Bell Telep..615% Pt.(qua 6% preferred (guar 31.50 Jan. 2 Dec. 17 tb Northwestern Telegraph 25e. Jan, 2 Holders of tee. Dec. 18 Jan. 1 Jamaica Public Service. corn. Nova Scotia Light A Power. ord. (guar.) *81 Jan. 2 *Holders of rec. Dec. 19 135 Jan. 2 Holders of rec. Dec. 18 Preference (Oust.) *35e Jan. 1 "Holders of tee. Dee. 20 Jan, 15 *Holders of rec. Jan. 2 Ohio Associated Telep., pref.(quar.) Joplin Water Works.6% nref.(boar.)... *35e Jan. 1 'Holders of rec. Dec. 20 Ohio Cities Telephone, pref. (quar.) Jamestown Telephone. 7% 1st pref.(qu.) •151 Jan. 1 *Holders of rec. Dee. 15 *$1.50 Jan. 2 *Holders of rec. Dec. 21 *255 Jan. 1 "Holders of tee. Dec. 15 Ohio Cities Water, $6 pref. (guar.) Preferred A (guar.) •1% Jan. 2 *Holders of rec. Dec. 15 Ohio Electric Power,7% pref.(quar.)_ Jersey Cent. Lt & Few.,5 yi% of.(qua. 155 Jan. 1 Holders of ree. Dee, 10 6% preferred (quar.) 1 55 Jan. 1 Holders of rec. Dee. 10 "114 Jan. 2 'Holders of rec. Dec. 15 6% preferred (Oust.) Ohio Pub. Serv. Co., 7% pref. (mthly.) 58 1-3c Jan. 2 Holders of tee. Dee. 150 151 Jan. 1 Holders of rec. flee. 10 7% preferred (guar.) preferred 6% 50e Jan. 2 Holders of rec. Dee. 184 Jan. (monthly) 2 Holders (quar.) of rec. Power, 7% pref. Dec. 15 Electric Kansas $i2-hc Jan. 2 Holders Of roe. Dec. 15a 6% preferred (monthly) "13.4 Jan. 2 'Holders of rec. Dee. 15 6% preferred (guar.) 7% prefe,refl (monthly) 58 1-3c Feb. 1 Holders of rec. Jan. 15a 154 Jan. 2 Holders of rec. Dee. 15 Kansas Gas & Flee. Co.,7% pf. (quar.) _ 50e Feb. 1 Holders of rec. Jan. 15a 6% preferred (monthly) $1.50 Jan. 2 Holders of rec. Dee. 15 6% preferred (quar.) 412-3c Feb. 1 Holders of reo. Jan. 15a 5% preferred (monthly) *155 Jan. 2 "Holders of reo. Dee. 19 Kansas Power & Light. 7% prof. (quar.) •fli (guar.) Jan, 2 Ohio Telephone Service, pref. Jan. 1 Holders of tee. Dee, 24a "Holders of (guar.) rec. Dec. 134 19 preferred 6% 54 131 90 FINANCIAL CHRONICLE [VOL. 134. _ Per When Cent. Payable. Books Closed, Days Inclusive. Per When Books Closed. Name of Company. Cent. Payable. Days Inclusive. Public Utilities (Confirmed). Public Utilities (Concluded). Ohio Edison Co.,$5 pref.(oust.) $1.25 Jan. 2 Holders of rec. Doe. 15 United Light & Rys.(Del) $6 preferred (guar.) $1.50 Jan. 2 Holders of rec. Dee. 15 7% prior pref.(monthly) • 58 1-3e Jan. 2 *Holders of rec. Dec. 15 $8.60 preferred (guar.) $1.65 Jan. 2 Holders of rec. Dee. 15 6.36% prior pre. (monthly) •530 Jan. 2 *Holders of recs. Doe. 15 $7 preferred (guar.) $1.75 Ian. 2 Holders of rec. Dec. 15 6% prior Prof. (monthly) *50o Jan. 2 "Holders of rec. Dee. 15 $7.20 preferred (guar.) $1.80 Jan. 2 Holders of rec. Dec. 15 United Ohio Utilities, Cl. A & B.(quay.). •31 Jan. 2 'Holders of ree. Dec. 26 Orange dr Rockland Elec.? % pref.(qu.) •1fi Jan. 2 *Holders of rec. 6% preferred (guar. Dec. 25 Jan. 2 "Holders of rec. Dee. 8% preferred (guar/ •13.5 Jan. 2 *Holders of rec. Dec. 25 United Public Utilities, $8 pref. (guar.). $1.60 Jan. 2 Holders of rec. Dee. 26 15 Ottawa Light Heat & Power. pref.(on.) 1% Jan. 1 Holders $5.75 preferred (guar.) Dec. 150 of 11.4331 Jan. 2 Holders of rec. Doe. 15 Otter Tail Power(Del.)$6 pref.(qu.).-- "31.50 Jan. 1 *Holders of rec. nited TOG).(Del.). $7 Met pt.(au.) *31.75 Jan, 1 *Holders of rec. Dee. 19 roe. Dec. 15 $5.50 preferred (guar.) • 51.375 Jan U.S.Electric Power, pref.(guar.) I *Holders of rec. Dec. 15 •134 Feb. 1 *Holders of rec. Jan. 2 Pacific & Atlantic Tele," *50c. tan. 2 *Holders of rec. Dec. 15 Utah Power dr Light,$7 Prof.(quar.)--- *31.75. Jan. 2'Holders of rec. Dee. 5 Paoliit Gas & Electric, corn.(a uar.)---500 Jan. 15 Holders of rec. Dec. 810 36 preferred (guar.) *$1.50 Jan. 2 *Holders of rec. Deo. 5 Pacific Lighting Corp., $6 pt.(guar.).- $1.50 Jan. 15 Holders of Utilities roe. Dec. 31 Power & Light Corp. Pacific Northwest Public ServiceCorn.(one-fortieth share corn,stock)-- (!) Jan. 2 Holders of rec. Doe. 5 7% prior preferred (guar.) •1,‘ Jan. 1 *Holders of too. Dee. 15 Class A (guar.) 50c. Jan. 2 Holders of rec. Dec. 54 7.2% first preferred (guar.) *1.80 Feb. 1 *Holders of rec. Jan. 15 Class B (one-fortieth share corn.stock) (.0 Jan. 2 Holders of rec. Dee. 5 8% first preferred (guar.) Jan. 1 *Holders of no. Dec. 16 7% preferred (guar.) 131 Jan. 2 Holders rec. flee. 5 Pacific Public Service, 1st pref. (guar.)- 32110 Feb. 1 Holders of rec. Jan. 15 Virginia Public Service, 7% pref.(go.).. 134 Jan. 1 Holden of rec. Dec. 10 of Pacific Telep. & Teleg., pref. (quar.) 114 Jan. 15 Holders of rec. Dec. 31a 6% preferred (guar.) 134 Jan, 1 Holders 10 Panama Power & Light, pre/ (quar.) Jan. 2 *Holders of rec. Dec. 15 Wabash Telephone Securities, pref.(qu.) •1fi Jan. 2 *Holders of rec. Dec. of rec. Dec. 19 Penn Central Light & pow.,$5 Prof.(qu) $1.25 Ian. I Holders of rec. Dee. 10a Warren (Ohio) Telephone, 7% pref.(qu.) '134 Jan, 1 *Holders of rec. Doe. 20 $2.130 preferred (gum.) 700 Jan. I Holders of rec. Dec. 10 Washington Gas & Elec.,7% pref.(go.). *131 Jan. 1 "Holders Pennsylvania Gas & El. Co.$7 pf.(gu.)- *31.75 Jan. 2 "Holders of rec. Dec. 20 West Kootenay Power & Light. Pf.(qu.) 11( Jan. 2 Holders of rec. Dec. 15 of tee. Dec. 22 7% preferred (guar.) *15( Jan. 2 *Holders of roe. Dec. 20 West Penn Power Co.,7% pref.(qua?.). 114 Feb. 1 Holders of rec. Jan. Se Pennsylvania Power & Light Co. 6% preferred (guar.) 134 Feb. I Holders of rec. Jan. 50 37 preferred (guar.) $1.75 Jan. 2 Holders of rec. Dec. 15 West Phila.Pass.Ity $4.25 Jan. 1 Holders of rec. Dee. 154 $8 preferred (guar.) $1.50 Jan. 2 Holders of rec. Dec. 15 West Texas Utilities, $6 pref. (Oust.)... $1.50 Jan. 2 Holders $5 preferred (guar.) $1.25 ran. 2 Holders of rec. Dec. 15 West Va. Water Service. $6 pref.(on.).. "11.50 Jan. 1 Holders of tee. Dec. 15 of ree. Dec. 21 Pennsylvania Telephone, pref. (guar.).- "114 Jan. 1 *Holders of rec. Dee. 15 WesternN. Y. Water. pref.(guar.).... *31.25 Jan. 2 *Holders of roe. Pennsylvania Water & Power (quar.) The. Jan. 2 Holders of rec. Dec. 15 Western Power Corp., pref.((Mara-, 151 Jan. 2 Holders of roe. Dec. 23 Dec. 28 Peoria Water Works. pref. (guar.) '134 Jan. 2 *Holders of rec. Doe. 21 Western Pow.,Lt.& Telep., pf. A (qu.)- •1% Jan. 1 'Holders of rec. Dee. 15 Philadelphia City Pass Ry •53.75 Jan. 10 *Holders of rec. Dee. 28 6% preferred series B (guar.) '134 Jan. 1 'Holders of rec. Doe. 15 Philadelphia Co., corn. (quer.) 550. Jan, 25 Holders of rec. Dec. 31 Western Union Telegraph (guar.) Jan. IS 134 Holders of rec. Doe. $6 preferred (guar.) $1.50 Jan, 2 Holders of rec. Dec. 1 Western United Gas & ELAM% pf.(gu.) •1% Jan, 2 Holders of roe. Dee. 22a $5 preferred (guar.) $1.25 Jan, 2 Holders of rec. Dec. 1 *1% Jan. 2 Holders of rec. Dec. 17 6% preferred (guar.) 17 Philadelphia & Darby Ry Jan. 1 *Holders of roe. Dec. 20 *81 Wichita Water Co.,7% pref.(Oust.).... Jan, 15 Holders of reo. Jan. 2 Philadelphia Electric Co., pf.(guar.).- "11.25 Feb. I *Holders of rec. Jan. 9 Wisconsin Elec. Power. 634% pf.(aU.). *1.5i Jan. 2 Holders of rec. floe. 15 Philadelphia Eiee Power. pref.(guar.) 500. lan. 1 Holders of roe. Dec. 104 6% preferred (gust.) Jan. 2 Holders of rec. Dee. 15 Piedmont & Northern Ry.(guar.) Jan. 9 *Holders of rec. Dec. 31 Wisconsin Gas & El..8% Pfker.0(an.). •1 Jan. 15 Holders of rec. Dee. 31 'Plainfield Union Water (guar.) '11.25 Jan. 2 *Holders of roe. Jan. 2 Wisconsin Valley Electric Co., pref Jan. 2 Holders of rec. Dee. 31 3)4 Ponce Electric Co., Prof.(guar.) . 154 Jan 2 *Holders of roe. Dee. 15 York Railways, corn. (extra) *33 Jan. 1 Holders of res. Dec. 15 Porto Rico Power Co.. Ltd., pref. (qu.) 1 44 Jan. 2 Holders of tee. Doe. 15 Power Corp.of Canada. Ltd.. cons.(qu.) 50o. Feb. 20 Holders of rec. Jan. 30 Banks. 6% prof.(qua?.) 1134 Jan. 15 Holders of reo. Dec. 31 Chase National (guar.) $1 Jan. 2 Holders of rec. Dee. lba 6% participating pref. (guar.) Ube. Jan. 15 Holders of tee. Dec. 31 Chatham Phenix Nat. Bk.& Tr.(Qum.) 441 Jan. 2 •Holders of rec. Dee. 15 Providence Gas (guar.) Jan, 30e. 2 Holders of tee. Deo. 15 Commercial Nat. Bk.& Tr.(gust.).... *2 Jan. 2 *Holders of recs. Dee. 15 Public Service of Colorado. Fifth Avenue Jan. 2 Holders of rec. Dec. 310 7% preferred (monthly) 58 1-3c Jen. 2 Holders Of roe. Dec. 15a First National(guar.) Bank (N.Y.)(gnat.).... 25 Jan. 2 Holden of rec. Dec. 24a 6% preferred (monthly) Jan. 50e. 2 Holders of reo. Dee. 150 National City (guar.) Jan. 2 Holders of tee. Dec. 12 5% preferred (monthly) 41 2-30 Jan. 2 Holders of roe. Dee. 15a Peoples National (Brooklyn)(gust.).... a Jan. 1 Holders of rec. Dee. 22 7% preferred (monthly) 58 I-30 Feb. 1 Holders of tee. Jan. 15a South Shore (Staten Island) *2 Jan. 2 "Holders of rec. Dec. 24 8% preferred (monthly) 50c. Feb. 1 Holders of rec. Jan. 15a West New Brighton (Staten Island).... *4 Jan. 11 'Holders of reo. Dec. 31 5% preferred (monthly) 412-Se Feb. 1 Holders of tee. Jan. 15a Public Service of Indiana.$7 Pr. p1.(cm.) $1.75 Jan. 15 Holders of rec. Dec. 31 Trust Companies, Public Serv.Corp.of N.J.,6% pf.(mthlY.) 50e.Jan. 30 Holders of rec. Jan. 2a Banns Commerciale Itallana Tr. (an.).. •131 Jan, 2 *Holders of reo. Dee. 15 Public Service of Oklahoma.corn.(guar.) 2 Jan, 2 Dee. 22 to Jan. 2 Bank of New York & Trust (guar.) 414 Jan. 2 Holders of rec. Dec. 18a 7% prior lien stock (guar.) 13i Jan. 2 Dec. 22 to Jan. 3 Bankers (guar.) Trust 75c. Jan. 2 Holders of roe. Deo. 11 6% prior lien stock (guar.) 134 Jan. 2 Dee. 22 to Jan. 3 Bronx County (guar.) *25e. Ian. 1 *Holders of rec. Doe, 19 Puget Sound Power & Light, $6 p1.(qu.) 41.50 Jan. 15 Holders of rec. Dec. 21 Brooklyn (guar.) 5 Jan. 2 Holders of rec. Dec. 22 $5 prior preferred (guar.) *31.25 Jan. 16 Holders of rec. Dec. 21 Central Hanover Bank & Tr.(guar.)---- $1.50 Jan. 2 Holders of rec. Dec. 18 Quebec Power (guar.) 50e. Jan. 15 Holders of rec. Deo. 23 Extra Jan. 2 Holders of roe. Dec. 19 $1 Queensborough Gas & Elec.,8% Pf.(qu.) *1M Jan. 2 Holders of res. 1)ee. IS Chemical Bank & Trust Aillar.) 45c. Jan. 2 Holders of roe. Doe, 18 Richmond Water Works.6% Pf.(qu.).' 131 Jan. 2 Holders of rec. Dee. 21 County Trust (guar.) 800. Jan. 2 Holders of roe. Dec. 230 Rochester Central Power,6% pt.(o.)- .1.1% Jan. 2 •Holders of rec. Nov.30 Empire (guar.) 80o. Jan. 2 Holden of rec. Dee. 17a RochesterTelephone Corp.,corn.(guar.) •134 Jan. 2 Holders of rec. Dec. 12 Fulton (guar.) Jan. 2 Holders of reo. Dec. 21 First preferred (guar.) Jan. 2 Holders of rec. Dee. 12 Irving (guar.) 400. Jan. 2 Holders of rec. Dee. 4 St. Joseph Ry.. L., H.,& Pow.. pf.(qu.) •1g Jan. 2 Holders of rec. Dec. 15 Manhattan Co.(oust.) Jan. Holders of tee. Dee. 154 $1 Savannah Elec.& Power. pref. A (guar.) *2 Jan. 2 Holders of rec. Dee. 10 Manufacturers (guar.) *500. Jan. 2 *Holders of roe. Dee. 21 Preferred B (guar.) ' i7 Jan. 2 Holders of rec. Dee. 10 New York (guar.) $1.25 Jan. 2 Holders of reo. Dec. 19a Preferred C (quer.) '134 Jan. 2 Holders of rec. Dec. 10 Title Guarantee & Trust (guar.) $1.20 Jan. Holders of rec. Dec. 21 Savannah Gas (guar.) "4334o Jan. 1 *Holders of roe. Nov.25 Extra 30e. Jan. 2 Holders of roe. Dee. 21 Scranton Electric Co.. $6 pref. (guar.)- *31.50 Jan. 2 *Holders of rec. Dec. 9 United States (guar.) 2 Holders of roe. Dee. 210 Jan. 15 Second & 3d Sts. Pass. Ry.(Phila.)(qu.) $3 Jan. 1 Holders of roe. Dec. la Sedalia Water. preferred (guar.) 15( Jan. 15 Holders of tee. Jan. 1 Fire Insurance. Shasta Water Co., class A (guar.) *37140 Jan. 1 *Holders of rec. Dec. 17 Continental 81.20 Jan. 9 Holders of rec. Dee. goo Shawinigan Water & Power(guar) 50e an. 11 Holders of rec. Dec. 18 Fidelity-Phenix $1.80 Jan. 9 Holders of reo. Dec. 804 South Carolina Power,$6 pref.(qu.)---- $1.50 Jan. 1 Holders of rec. Dec. 21 Hanover Fire (quar.) 40c. Jan. 2 Dec.19 to Dee. 31 South Pittsburgh Water.6% p1.((BO-- 134 Jan. 15 Holders of rec. Jan. 2 Home (guar.) 50e. Jan. 2 Holders of roe. Dee. 15 7% preferred (guar.) 134 Jan. 15 Holders of rec. Jan. 2 5% preferred 411.25 Jan. 19 *Holders of tee. Jan. 8 Joint Stock Land Bank, Southern California Gas Co..cons.(qu.). •37140 Jan. 15 *Holders of rec. Dee. 81 Dallas (qua?.) Jan. 1 *Holders of roe. Dee. 20 $1 Preferred A (guar.) "17340 Jan. 15 *Holders of rec. Dec. 31 Southern Calif. Edison, corn.(guar.).- 50o. Feb. 15 Holders of rec. Jan. 20 Miscellaneous. Originally preferred guar.) 50o. Jan. 15 Holders of roe. Doe. 20 Abbott Laboratories (guar.) 82340 Jan. 2 Holders of res. Dec. 16 Preferred series C (guar.) 3434 Jan. 15 Holders of rec. Dee. 20 Abraham & Straus, Inc.. prof. (quar.)-- 134 Feb. 1 Holders of tee. Jan. 154 Southern Canada Power, cons.(clusr.) 250. Feb. 15 Holders of rec. Jan. 30 Acme Steel ,qua?.) •40e Jan. 2 *Holders of rec. Dec. 21 Preferred (guar.) 134 Jan. 15 Holders of rec. Dec. 19 AddressograDh-MultogrsPb Corp.(cm.). 25e. Jan. 10 Holders of fee. Dee. 21a Southern Counties Gas.8% prof.(on.).. an. 15 *Holders of tee. Dec. 31 Administrative & Research Corp., Cl. A SouthernGaa & Elec..7% pf.(0.)_ 134 Jan. 2 Holders of rec. Dec. 22 (guar.) "250. Jan. 1 *Holders of tee. Dee. 18 6% preferred (guar.) IM Jan, 2 Holders of rec. Dee. 22 Aetna Rubber, pref.(guar.) 114 Jan, 1 Holders of ree. Dee. 154 6% preferred (semi-annual) 3 Jan. 2 Holders of rec. Dec. 22 Affiliated Products (guar.) 400. Jan, 2 Holders of roe. Dee. 18a 6.6% preferred (guar.) 1.65 Jan. 2 Holders of ree. Dee. 22 Agnew Somme Shoe Stores, pref.(qu.) 154 Jan. 2 Holders of ree. Dec. 15 Southwest Telep. Co.. 7% pref.(quer.). •1N( Jan. 1 *Holders of rec. Dec. 19 Air Reduction Co.(guar.) 75e. Jan. 15 Holders of tee. Dee. 814 Southwestern Bell Telep.. pref. (guar.). 1% Jan. 1 Holders of rec. Dee. 19 Alabama Fuel & Iron (guar.) I Jan. 1 Holders of no. Dec. 21 Southwestern Gas & Elec.,7% pf.( qu.). 154 Jan. 2 Holders of rec. Dee. 15 Alemco Associates, Inc.(guar.) •I0o. Jan. 2 *Holders of roe. Dee. 80 8% preferred (guar.) 2 Jan. 2 Holders of ree. Dec. 15 Mies & Fisher (guar.) 250. Jan, 2 Holders of roe. Dee. 17 Southwestern Light & Power. tire!.(on.) 81.50 Jan. 2 Holders of rec. Dee. 15 Allied Chemical & Dye Corp.. pf.(guar.) 154 Jan. 2 Holders of reo. Dee. lie Southwestern States Telep.,7% pt.(and •1M Jan. 1 *Holders of rec. Doe. 19 Allied Laboratories, pref. (guar.) *8714e Jan. I *Holders of ree. Dec. 15 Springfield Gas & Elec.. pref.(gust.)... $1.75 Jan. 2 Holders of rec. Dee. 15 Altorfer Bros. Co., cony. pref.(qu.) •750. Jan. 30 *Holders of rec. Jan. 15 Electric Stamford Gas & 0214 Jan. 15 *Holders of rec. Dec. 81 (guar.) Aluminum Co. of Amer., pref.(Oust.) *114 Jan. 1 *Holders of rec. Dee, 15 Standard Gas & Elec. Co., corn.(guar.) 8714c Jan. 25 Holders of rec. Dec. 81a Aluminum Goods Manufacturing (guar.) 30e. Jan. 1 Dee. 22 to Dee. 31 $6 prior preference (guar.) 31.50 Jan. 25 Holders of rec. Dee. 31a Alpha Portland Cement, corn. (guar.)._ 25c,Jan. 25 Holders of roe. Jan. 2.2 $7 prior preference (guar.) 11.75 Jan. 25 Holders of roe. Dee, 81a American Aggregates, pref. (guar.) •154 Jan. 1 *Holders of tee. Dee. 21 Stand.Pow.& Lt.,corn.& oom.B 50o. Mar. 1 Holders of rec. Feb. 11 Amer. Asphalt Roofing, pref.(quar.)•2 Jan. 15 *Holders of roe. Doe. 31 Preferred (guar.) 134 Feb. 1 Holders of tee. Jan. 111 American Bakeries, class A (Oust.) •750. Jan. 1 *Holders of roe. Dee. 18 Telephone Bond & Share, corn. A (qu.).. *1/50o. Jan. 15 *Holders of rec. Dee. 21 7% preferred (guar.) •134 Jan. 1 *Holders of roe. Dee. 18 Preferred (guar.) 134 Jan. 15 Holders of rec. Dee. 21 American Bank Note, corn.(guar.) 50o. Jan, 2 Holders of rec. Dee. 104 Participating preferred (guar.) Jan. 16 *Holders of rec. Dec. 21 "V Preferred (guar.) 75e. Jan. 2 Holders of rec. Dee. 104 Tenneseee Elec. Pow.. 5% Jam. 2 Holders of roe. Dec. 15 American Can. pref. (guar.) 134 Jan. 2 Holders of roe. Dec. lea 6% first preferred (guar.) 114 Jan. 2 Holders of rec. Dee. 15 Amer.Car & Fdy.. pref. (guar.) Jan. 1 Holders of rec. Dec. lla 154 7% nen preferred (guar.) 15$ Jan. 2 Holders of rec. Dec. 15 Amer. Cast Iron Pipe, prof .1.8 Jan. 2 *Holders of roe. Dee. 19 7.2% first preferred (guar.) 1.80 Jan 2 Holders of rec. Dec. 16 American Chicle (guar.) 50e.Jan, 1 Holders of rec. Dec. Dle 6% first preferred (monthly) 50e. Jan. 2 Holders of rec. Dec. 15 Extra 25e. Jan, 1 Holders of roe. Dee. 124 7.2% first preferred (monthly) 6Ots. Jan. 2 Holders of rec. Dee. 15 American Express(guar.) $1.50 Jan. 2 Holders of rec. Dee. 18a Texas Electric Service.86 pref.(guar.) *31.50 tan. 1 *Holders of no. Dec. 12 American Factors(monthly) Jan. 1 *Holders of rec. Dec. Si •150. Thirteenth & 15th Sta. Pass. Ry 48 Jan, 1 *Holders of rec. Dec. 20 American *114 Jan. 2 *Holders of too. Dee. 21 Toledo Edison Co.,7% pref.(mthly.)--5 8 1-3o Jan. 2 Holders of rec. Dec. 15a American Felt,6% pref. (guar.) Fork & Hoe. pref.((Mara- •114 Jan. 15 *Holders of rec. Jan. 5 6% preferred (monthly) 500 Jan. 2 Holders of tee. Dec. 150 American Hardware (guar.) Jan. 1 *Holders of rec. Dee. 16 "11 5% preferred (monthly) 4 12-30.Jan. 2 Holders of tee. Dec. 150 American Home Prod. Corp.(mthli.)-35e. Jan. 2 Holders of rec. Dec. 14a Toledo Light & Pow., pref.(guar.) 134 Jan. 2 Holders of rec. Dee. 15 Monthly 350 Feb. 1 Holders of rec. Jan. 144 'Fri-State Tel. & Tel (guar.) *31.50 Jan. 1 *Holders of roe. Dee. American Ice, corn.(guar.) 50e. Jan. 25 Holders of rec. Jan. 4 Twin City It. T., Mtnneap. pref. (guar) 134 Jan. 2 Holders of rec. Dec. 15 Preferred (guar.) 12a $1.60 Jan. 25 Holders of rec. Jan. 4 Twin State Gas & Elec.American News(h -monthly) Jan. 15 Holders of rec. Jan. 5 50c. Prior lien stock (gust.) Amer. Office Bldg.(Richmond).PL(gu.) •114 Jan. 2*Holders of rec. Dec. 23 111.75 Jan. 1 *Holden of Dec. 15 Union El.IL& Pow.(III.),6% pt.(qu.)_ '134 Jan. 2 *Holders of rec. •40e. Jan. 15 American Ry, Trust Shares rec. Dee. lb Union El.Lt.& Pow.(Mo.),6% pf.(qu.) American Rolling Mill,6% pref.(an.).. *134 Jan. 15 *Holders of rec. D00. 31 '134 Jan. 2 *Holders of rec. Doe. 15 7% preferred (guar.) •IM Jan. 2 *Holders of rec. Dec. 15 Preferred B (guar.) '131 Jan. 2 *Holders of rec. Dee. 15 Union Passenger RY., Phil* $4 Jan. 1 Holders of rec. Dec. 150 American Screw. corn.(guar.) 50e. Jan. 2 Holders of rec. Dec. 190 Union Public Service (Minn.) corn.(au.) '134 Jan. 1 *Holders $1.25 Feb. 1 Holders of rec. Jan. 15a Amer. Shipbuilding, cons. (guar.) of rec. Dee. 21 7% Preferred A (guar.) '134 Jan. 1 *Holders of rec. Dee. 21 '154 Feb. 1 *Holders of roe. Jan. 15 Preferred (guar.) 7% Preferred B (gust.) •1K Jan. 1 *Holders of rec. Dee. 21 750. Jan. 2 Holders of rec. Dec. 10a American Snuff. corn. (guar.) $6 preferred C (guar.) *31.50 Jan. 1 *Holders of rec. Dec. 21 250. Jan. 2 Holders of rec. Dec. 104 Common (extra) $13 preferred D (guar.) •31.50 Jan. 1 *Holders of rec. Dec. 21 134 Jan. 2 Holders of rec. Dec. 104 Preferred (guar.) Union Traction Co., Phi's 61.50 Jan. 1 Holders of tee. Doe. 9 500. Jan. 1 Holders of recs. Doe. 12 American Stores (guar.) United Corporation, corn.(guar.) 18340 Jan. 2 Holders of roe. Dee. 2a Afoot.Sugar Refg.,corn.(guar.) 134 Jan. 2 Holders of Fee. Dee. Sc Preferred (guar.) 75o. Jan. 2 Holders of roe. Doe. 2a 154 Jan. 2 Holders of roe. Dee. So Preferred (guar.) United Gas & Elec., preferred 24 Jan. American Thermos Bottle. prof. (gu.)- - *13714o Jan. 1 *Holders of rec. Dee. 19 Holders of rec. Dec. 31 United Gas & Elec. Corp., pref.(qua?.). 134 Jan. 15 1 Holders of rec. Dec. 16 12140 Jan. 1 Holders of roe. Nov.304 American Thread, preferred United Light & Power, corn. A & B (qu.) 250. Feb. 1 Holders of rec. Jan. 150 American Tobacco, pref. (guar.) 134 Jan, 2 Holders of reo. Dee. 10a Preferred (guar.) $1.50 Jan. 2 Holders of rec. Dee. laa Amer. Type Founders Co., pref. (guar.) 154 Jan. 15 Holders of roe. Jan. 5 United Pow.& Lt.CorP.(Ran.).Pf. American Wringer (guar.) (WO dIN Jan. 1 Holders of rec. Dee.d15 '3734e Jan. 2 *Holders of reo. Dee, 15 Name of Company, in pt. OHO- 134 JAN. 2 1932.] Name of Company. 91 FINANCIAL CHRONICLE Per When Cent. Payable. Books Closed. Days Inclusive. Name of Company. Per When Cent. Payable. Books Closed. Days Enc.lusfia. Miscellaneous (Continued). Miscellaneous (Continued). 154 Jan. 1 Holders of tee. Dee. 12. Case (J. I.) Co.. pref. (guar.) •50c. Jan. 1 "Holders of rec. Dec. 15 American Yvette Co., Inc., pref.(go.) 600. Jan. 2 Holders of rec. Dec. 21 a Celanese Corp. of AmericaAnchorCap Corp., corn. (guar.) 1% Jan. 1 Holders of roe. Dec. 15 7% prior preferred (guar.) $1.62E Dec. 2Ia 2 Jan. Holders of reo. Preferred (guar.) 37fie Jan. 2 Holders of rec. Dec. 184 Central Aguirre Associates (guar.) *134 Jan. 1 *Holders of rec. Deo. 20 Andover Realty,6% pref.(guar.) Chain Store Products, pref. (gust.)._._ '3734c Jan. 4 "Holders of reo. Dec. 19 Andre Citroen Corp. Champ.Coated.Pap. p1.&spec. pf.(qu.) "1St Jan. 2"Holders of reo. Deo. 19 *Mr. Jan. 21 *Holders of rec. Jan. 14 Am.dep.rcta.for B bearer shares *gm Jan. 1 *Holders of rec. Dee. 19 Champion Fibre,7% pref.(guar.) 50o Jan. 15 Holders of rec. Jan. 4 Anglo National Corp., corn. cl. A (go.) sj.ei Jan. 2 *Holders of roe. Dec. 18 134 Jan. 1 Holders of rec. Dee. 200 Champion International, corn.(guar.) Apex Elec. Mfg., prior pref.(on.) *154 Jan. 2 *Holders of rec. Dee. 18 (guar.) preferred *50c Jan. 1 'Holders of rec. Dee. 15 7% A pponaug Co., COM.(quer.) *18540 Jan. 15 *Holders of rec. Dec. 24 Chapman Ice Cream (guar.) "154 Jan. 1 *Holders of rec. Dec. 15 6ff% preferred (guar.) '154 Jan. 2 *Holders of rec. Dec. 26 1% Jan. 2 Holders of rec. Dec. 100 Charles Street Garage, 7% pt.(gu.) Armour & Co.of Del., pref.(guar.) Chartered Trust dr Executor Co.(gust.) 134 Jan. 2 Holders of rec. Dec. 24 Arnold Print Works,lit & 2nd Did.(0113 •154 Jan. 1 *Holders of rec. Dee. 20 *154 Jan. 1 "Holders of tee. Deo. 20 Chatham Mfg.,7% Pref.(guar.) •87Sic Jan. 1 *Holders of rec. Dec. 20 Participating preferred (guar.) '154 Jan. 1 'Holders of rec. Dec. 20 6% preferred (guar.) Elec.. corn . squ.) Hegeman *40c Jan. 1 Arrow-Hart & 'Holders of rec. Dec. 24 '154 Feb 1 *Holders of ree. Jan. 15 *154 Jan. 1 *Holders of rec. Dec. 24 Cherry-Burrell Co., Pref.(guar.) Preferred (quar.) 10c Jan. 2 Holders of roe. Dec. 190 Chicago Gulf Corp..el. A (qui(No.1) •12%c Jan. 1 "Holders of rec. Dee. 20 Art Metal Construction (gust.) 2)4 Jan. 1 Holders of rec. Dec. 15 The. Jan. 2 Holders of rec. Dec. 21 Chia Janet Rya dr Un.Stk.Yds..trom(qu Arundel Corp.(guar.) 1% Jan. 1 Holders of rec. Dec. 15 Preferred (guar.) Assoc. Bankers Title Mtge. Guar.(go.). *3734 Jan. 1 'Holders of tee. Dec. 20 *S1.25 Jan. 2"Holders of rec. Dec. 21 Associated Breweries of Can.. pref. (gu.) Li % Jan. 1 Holders of rec. Dec. 15 Chicago Towel, corn.(guar.) *$1.75 Jan. 2 *Holders of rec. Boo. 21 Preferred (guar.) Associated Industrial Bankers.el. A (go.) '65c Jan. 2'Holders of res. Dec. 15 Chicago Transfer & Clear..6% pt.(gu.)- *1% Jan. 2 *Holders of rec. Dec. 15 Class B (guar.) ii20 Jan. 2 "Holders of reo. Dec. 15 60c Mar, 1 Holders of rec. Feb. 191 Chicago Yellow Cab (guar.) Athol Mtg.(mum) •50e Jan. 2'Holders of rec. Dec. 26 "$2.50 Jan. 2 *Holders of rec. Dec. 20 ChIquola Mfg., oom Preferred "3,4 Jan. 2 "Holders of rec. Dec. 26 s$3 Jan. 2'Holders of roe. Dee. 20 Atlantic Ice & Coal, pref. A (guar.) 6% preferred "75e. Jan. 1 'Holders of rec. Deo. 21 250 Jan. 4 Holders of tee. Dee. 15 Preferred Chrysler Corp., common (guar.) '334 Ian. 1 'Holders force. Dec. 21 •50e Jan. 4 *Holders of res. Dec. 15 Atlantic City Sewerage (guar.) Churchill Hosiery Corp •25c. Jan. 2 *Holders of rec. Jan. 2 Atlas Stores Corp., pref. (guar.) Cincinnati Advertising Proanata ((Mar.) •75e Jan. 1 *Holder, of toe Dee. 19 *75c. Jan. 2 'Holders of rec. Dec. 15 Atlas Thrift Plan, 7% pref.(guar.) Cincinnati Wholesale Groc., pref.(on.). .1,1% Jan. 15 *Holders of rec. Dec. 81 174c Jan. 2 Holders of tee. Dec. 24 • 11.46c Jan. 2 *Holders of rec. Dec. 15 Auburn Automobile (guar.) $1 Jan. 2 Holders of rec. Dec. 220 Cities Service Bankers shares 254o Jan. 2 Holders of rec. Dec. 156 Stock dividend a Jan. 2 Holders of rec. Dec. 22a Cities Service Co.,corn.(monthly) 114 Jan. 2 Holders of rec. Dec. 15a Common (payable In common stk.).Austin Nichols & Co., prior A (guar.) 3730 Feb. 1 Holders of reo. Jan. 156 Sc Jan. 2 Holders of rec. Dec. 156 Preferred B Automobile Finance, pref Jan. 15 *Holden of tee. Dee. 31 (monthly) •87340 Jan. 2 Holders of tee. Dec. 15a 50o. Prof. and preference BB (monthly) Axton-Fisher Tobacco, cl. A (guar.) - - *800 Jan. 1 'Holders of tee Dee. 15 2)40. Feb. 1 Holders of rec. Jan. 150 Common (monthly) Preferred (guar.) '134 Jan. 1 'Holders of rec. Dee. 15 1 Jan. 2 Holders of roe. Dee. I9a Corn,(payable In corn,stk.)(rn(hLv.)-- 1% Feb. 1 Holders of tee. Jan. 15a Babeock & Wilcox (guar.) Sc. Feb. 1 Holders of rec. Jan. 150 Preferred B (monthly) Baer Sternberg & Cohen, lit pref. (qu.) 134 Jan. 2 Holders of rec. Dec. 24 Prof. and preference B B (monthly).. 50c. Feb. 1 Holders of roe. Jan. 15a Bakelite Corp., 654% pref. A (gust.)... •1zi Jan. 2*Holders of rec. Dec.d31 Jan. 4 Holders of rec. Deo. 280 2% 7% preferred B (guar.) Investing common •134 Jan. 2 Called for payt. Jan.232 City 154 Jan. 2 Holders of rec. Dee. 28 Bank Shares Corp.. class A ,guar.) Preferred (guar.) "20c Jan. 1 'Holders of rec. Dee. 19 . 1 "Holders of Leo. Dee. 31 •260. Jan. Barber (W. H.) Co., 7% pref. (guar.) Oily Union Corp..oom.(attar.) '134 Jan. 1 *Holders of rec. Dec. 20 *Holders of rec. Dec. 15 *31 Mc Barker Bros Corp.,654% pref.(qu.) 154 Jan. 1 Holden of rec. Dec. 140 Clark (D. L.) Co.(guar.) *40c. Jan. 1 'Holders of rec. Dee. 20 Claude Neon Elec.Prod.,corn.(guar.) Bastian Blessing Co.. corn. (guar.) •25c Jan. 15 *Holders of rec. Jan. 2 "Holders of tee. Dec. 20 •35e. 371.dc Jan. 15 Holders of tee. Dee. 3Ia Preferred (guar.) Dayuk Cigars, Inc., corn. (guar.) First preferred (guar.) 154 Jan. 15 Holders of rec. Dee. 31a Clorox Chemical, class A & B (guar.)... •50c. Jan. 1 *Holders of rec. Dec. 20 $1 Jan. 2 Holders of rec. Dec. 14a Cluett,Peabody & Co..Inc., prof.(qtr.)- 134 Jan. 2 Holders of rec. Dec. 216 Beatriee Creamery, corn. (guar.) Preferred (guar.) 134 Jan. 2 Holders of tee. Dec. 14a Coats (J. & P.), Ltd. Amer. dep. rots, for ord. reg. ills...' w454d Jan. 7'Holders of rec. Nov.20 25e. Feb. 1 Holders of rec. Jan. 15 Beatty Bros., Ltd., corn. A (guar.) 40e. Jan. 15 Holders of rec. Jan. 5 Coca Cola Bottling Co.of St.L.(guar.) First preferred (guar.) 134 Feb. 1 Holders of rec. Jan. 15 *40e Apr. 15 *Holders of reo. Apr. 5 75o. Jan. 1 Holders of rec. Dee. 12a Quarterly Beech-Nut Packing, corn,(guar.) *40e July 15 *Holders of too. July 5 Quarterly Bell View 011 Syndicate (Wean) *50c. Jan. 2 *Holders of rec. Dec. 21 *40c Oct. 15 "Holders of rec. Oct. 5 Beadle Aviation Corp.(guar.) 25c. Jan. 2 Holders of recs. Dee. 10a Quarterly $1.75 Jan. 2 Holders of roe. Dee. 125 500. Feb. 15 Holders of ree. Jan. 18a Coca-Cola Co., corn.(guar.) Bethlehem Steel, corn. (guar.) 250. Jan. 2 Holders of rec. Dee. 126 lyt Jan. 2 Holders of tee. Dee, do Common (extra) Preferred (guar.) 134 Jan. 2 Holders of roe. Dec. 126 Class A (guar.) 300. Jan. 2 Holders of tee. Dec. 24 Bickford's, Inc., common (guar.) Coca-Cola International. corn.(guar.)._ $3.50 Jan, 2 Holders of roc Dec. 124 6234e Jan. 2 Holders of rec. Dee. 24 Preferred (guar.) 50c. Jan. 2 Holders of rec. Dec. 12s Common (extra) Bird & Son (guar.) "25e. Jan. 2'Holders of tee. Dec. 26 113 Jan. 21•Elolders of rec. Dee. 13 Class A (guru.) Birmingham Mtge. Corp., 7% pt.(gu.)- •87310 Jan. 1 Holders 01 tee, Dec. 81 •40e. Jan. 2 *Holders of rec. Dee. 15 Cohen (Dan) Co.(guar.) Bliss(E. W.)Co. Colgate-Palmolive-Peet Co., pref. (go.). 134 Jan. 11 Holders of tee. Dee. 105 Cent.(Pay.in own.stook) 13 Jan. 2 Holders of rec. Dee. 91 Jan. 1 Holders of tee. Dee. 26 Colonial Finance Corp.. pref. (on.).... Jan. 2 Holders of rec. Dee. 21 91 First preferred (guar.) Columbia Mills(guar.) Jan. 2 *Holders of rec. Dee. 22 •1 Second preferred, class A (guar.) 873ie Jan. 2 Holders of rec. Doe. 21 Jan. 2 *Holders of rec. Deo. 20 of rec. *37 Holders Dec. 21 Columbian )4c Jan. 2 vise & Mfg. (guar.) Second preferred class B (oust.) 150. "25e. Jan. 2,"Holders of reo. Deo. 20 Extra Blumenthal (S.) & Co., pro!. (quit.) 134 Jan. 2 Holders of tee. Dec. 15a Bohn Aluminum & Brass (guar.) 117%0 Jan. 2 Holders of rec. Dee. 15a Commerce Investment Ine. (gust.).... •15e. Jan. 1i*Holdets of rec. Dee. 25 Comm. Discount (Los Angeles). P14q11.) •20c Jan. 10 *Holders of rec. Jan. 1 Boots Pure Drug Co., Ltd. 7% preferred (guar.) '1734c Jan. 10 *Holders of rec. Jan. I Jan. 7"Holders of rec. Dec. 23 *we Am. dep. rcts, for ord. reg *50e. Jan. 20'Holders of rec. Dec. 31 25e. Jan. 2 Holders of rec. Deo. 15a Commercial Finance Corp., pref Borg-Warner Corp., corn. (guar.) Trust, corn. (qua__ 50o. Jan. 1 Holders of rec. Dec. 56 Commercial Invest. '134 Jan. 2 *Holders of rec. Dec. 15 Preferred (gust.) 7% first preferred (guar.) 13,4 Jan. 1 Holders of rec. Dec. 56 Boston Herald-Traveler Corp.(oust.).. *10e. Jan. 2 *Holders of ree. Dec. 23 % first preferred (gear.) 154 Jan. 1 Holders of rec. Dee. Era •15e Jan. 2 *Holders of rec. Dec. 22 Boston Sand & Gravel,corn.(guar.) Cony. pref. opt. set. 1929 (a) Jan. 1 Holders of rec. Dec. Es •8734e Jan. 2 *Holders of roe. Dec. 22 Preferred (guar.) 14( Jan. 1 Dec. 24 to Jan. 1 Conduits, Ltd.. pref. (gust.) •1 Jan. 2 *Holders of tee. Dec. 24 Bourbon Stook Yards (guar.) Gas & Scours., corn. Conn. Coke Jan. 2 "Holders Dee. 1 of rec. (guar.). 1'200. Jan. 2"Holders of roe. Dec. 15 pref. (guar.). *134 Brandram-Henderson,7% *75e. Jan. 2"Holders of tee. Doe. 15 •8730 Jan. 1 *Holders of tee. Dee, 22 63 preferred (guar.) Brandtjen & Kluge. 7% pref.(quiz.) 25e. Jan. 2 Holders of rec. Dee. 19 Consolidated Bakeries of Can., com.(qu) Jan, 2 Holders of reo. Dec. 20 Brantford Cordage. pref. (guar.) 2 •1 Jan. 16 *Holders of rec. Dec. 31 Briggs Manufacturing, corn. (guar.). - 250. Jan. 25 Holders of rec. Jan. 110 Consol. Car Heating, Inc.(guar.) 50e. Jan. 10 Holders of rec. Dee, 316 Consolidated Cigar Corp., corn.(guar.)_ $1.25 Jan. 7 Holders of reo. Dee. 26a Briggs & Stratton Corp. (guar.) 50c. Jan. 2 Holders of tee. Dee. 106 Brillo Mfg., corn. (guar.) 15e. Jan. 2 Holders of rec. Dec. 15a Consolidated Film Industries. pref. 250. Jan. 1 Holders of tee. Dee. 15a 50o. Jan. 2 Holders of rec. Dec. 150 Consolidated Laundries, corn.(guar.)--Class A (guar.) • $1.875 Feb. 1 'Holders of tee. Jan. 15 Preferred (guar.) British-Amer.Oil reg.shares(guar.).t20c. Jan. 2 Dec. 13 to Dec. 31 Jan. 2 Holders of ree. Dec. 23 50o. Consolidated Lithographing, H. A (en.). 120e. Jan. 2 Holders of coup. No.7 Bearer shares 131.25 Jan. 15 Holders of rec. Dec. 23 Consolidated Mining & Smelting British-American Tobacco. ord.(final)-- (o) Jan. 25 See note(o). e5 Jan. 15 Holders of rec. Dec. 23 Stock dividend Ordinary (interim) (o) Jan. 25 See note(o). •17340 Jan. 1 *Holden of rec.; Dec. 21 Consolidated Paper, pref. (guar.) British Mtge.& Trust Corp. of Ont.. pt. "S6 Jan. 2 *Holders of rec. Dec. 19 'Sc.Jan. 25 *Holders of rec. Jan. 15 Consolidated Royalty 011 (guar.) Broad Street Investing (guar.) •250. Jan. 1 "Holders of roe. Dec. 16 Continental $2 Jan. 1 Holders of roe. Dee. 144 Baking, pref. (guar.) Broadway Dept.Stores. pref.(guar.).- *154 Feb. 1 *Holders of tee. Jan. 18 •40e. Jan. 2 'Holders of rec. Dec. 15 Bucyrus Erie Co., 7% pref.(quiz.)..-. 154 Jan. 2 Holders of tee. Deo. 56 Continental Casualty (guar.) •75c. Jan. 20 *Holders of rec. Jan. 5 Cony. pref.(adjustment My.) 205-Cc Jan. 2 Holders of roe. Dec. 56 Corn Products Retg., corn.(QUM.) •1% Jan. 15 *Holders of rec. Jan. 5 Preferred (guar.) Bucyrus-Monlghan Co., class A (quar.)- .45e. Jan. 1 'Holders of rec. Dec. 19 Cottrell (c. B.) & Sons.6% Of. WILL.-•1% Jan. 2 Claw A (extra) •200. Jan. 1 *Holders of rec. Dec. 19 Jan. 1 *Holders of rec. Dec. 15 Courier Post Co., corn. (guar.) Class B Holders *S2 Jan. 1 of rec. $1.10 Doc. 19 7% preferred (gust,) 134 Jan. 1 Holders of rec. Dec. 15 Building Products, Ltd., cl. A & B (go.) 50o. Jan. 2 Holders of reo. Dee. 22 •400. Jan. 2 *Holders of tee. Dec. 21 Burger Bros., corn. (guar.) Counselors Security Trust (guar.) *1234c Jan. 2 *Holders of reo. Dee. 15 8% preferred (guar.) 50e. Jan. 2 Holders of rec. Dec. 196 Cream of Wheat Corp.(gust.) .11 Jan. 2'Holders of rec. Deo 15 Extra 25e. Jan. 2 Holders of rec. Dec. 194 Burma Corp.,Ltd.,Am.dep.rota Feb. 20 *Holders of rec. Jan. 14 "(0 Burns Bros., pref. (guar.) 134 Jan. 2 Holders of rec. Dec. 15a Creameries of America, Inc.(gnat.).... .250. Jan. 2 'Holders of roe. Deo. 21 Burt (F. N.) Co., corn.(guar.) Creamery Package Mfg.corn.(gust.)... *50e. Jan. 11 *Holders of roe. Jan. I u75o Jan. 2 Holders of rec. Dee, 15 1 *Holders of roe. Jan. 1 Preferred (guar.) 017340 Jan. 10 0 Preferred (quer.) a13( Jan. 2 Holders of tee. Dee. 15 Jan. Bush Terminal, corn.(guar.) 62%c Feb, 1 Holders of rec. Jan. 8a Credit Utility Banking Corp.,el. A (go.) Debenture stock (guar.) '134 Jan. 2 Holders of tee. Dec. 31 134 Jan. 15 Holders of rec. Dec. 30a Crown Trust (Montreal) (guar.) Bush Terminal Bldg's.. Pref.(enema...-. I% Jan. 2 Holders of tee. Des. 16a Crown-Willamette Paper, bat pf.(qu.) $I Jan. 1 Holders of rec. Dee. 124 Byers(A. M.) Co.. pref.(guar.) Crown Zellerbach Corp.tred.•(quiz... 11754e. Mar. 1 Holders of rec. Feb. 1$ 134 Feb. 1 Jan. 17 to Jan. 28 11714e. Mar. 1 Holders of ree. Feb. 18 Bylleeby (H. M.)& Co., cl. A & B (qtr.) 50o Jan. 15 Holders of rec. Dee. 15 Preferred B (guar.) Calamba Sugar Estate,corn.(guar.).•25e. Jan. 15 *Holders of roe. Jan. 5 •40c. fan. 2 *Holders of rec. Dec. 15 Crum & Forster,corn.(guar.) Mar.31 *Holders of rec. Mar.21 *2 7% Preferred (guar.) •350. Jan. 2 *Holders of rec. Dec. 15 Preferred (guar.) Calaveras Cement, pref.(guar.) Jan. 1 *Holders of rec. Dee. 31 *4 Crystal Tissue Co.,8% pref •154 Jan. 15"Holders of rec. Dee. 31 California Consumers,$7 pref.(gust.). •$1.75 Jan. 2 *Holders of rec. Dec. 15 Jan. 15 Holders of roe. Jan. 50 $1 Cudahy Packing, common (guar.) California Group.6% pref.(guar.) 25e. Jan. 2 Holders of toe. Dee. 16 •I% Jan. 1 *Holders of rec. Dec. 31 Curtis MM.(Ohio)(guar.) California Ink. class A & 13 (guar.) *50c Jan. 2'Holders of reo. Dec. 21 $1.75 Jan. I Holders of tee Dee. 195 Curtis Publishing peer.(quiz.) Cambridge Investment, el. A & B (in.)- 025c. Jan. 2 *Holders of rec. Dee, 21 CurUss-Wright Export Corp., pt.(qu.)-- "134 Jan. 15 *Holders of rec. Dec. 31 Canada Bread, 1st pref.(guar.) 134 Jan. 2 Dec. 15 to Jan. 1 500 Jan. 1 Holders of reo. Dec. 21 Davenport Hos, Mills, Inc., corn.(go.). Canada Bud Breweries. Ltd.(guar.).- 25c. Jan. 15 Holders of rec. Dec. 31 Preferred (guar.) 13,4 Jan, 1 Holders of tee. Dec. 21 Canada Dry Ginger Ate (oust.) 800. Jan. 15 Holders of tee. Jan. 2a Davidson Co.. pref.(oust.) *134 Jan. 1 *Holders of rec. Dec. 90 Canada Permanent Mtge.(guar.) g Jan. 2 Holders of rec. Dec. 15 De Haviland Aircraft.5 Jan. 8 *Holders of roe. Dec. 24 Canada Trust Co 5 Jan. 2 Holders of ree. Dee, 15 Am,dep. rots,for ord. shares Canadian Bronze.con.(guar.) 3154c. Feb. 1 Holders of rec. Jan. 20 Am,dep. rots. for ord. reg. shares__ .5 Jan. 2 "Holders of rec. Doe. 14 owe Jan. 2 *Holders of rec. Dec. 19 Preferred (guar.) 134 Feb. I Holders of rec. Jan. 20 De Long Hook & Eye (guar.) t5o. Jan. 2 Holders of rec. Dee, 15 Canadian Canners, Ltd.,common (qu.). De VlIbiss Co., corn.(guar.) •25o Jan. 15 *Holders of reo. Dec. 31 6% 1st preferred (guar.) 7% preferred (guar.) *154 Jan. 2 Holders of rec. Dec. 15 •174c Jan. 15 *Holders of rec. Dec. 31 as% Jan. 2 *Holders of rec. Dee. 15 Me. Tan 2 Holders of rec. Dec. 15 Convertible preference (guar.) Delsel-Wernmer-Gilbert Co., prof Devoe & Reynolds Co., Inc. Canadian Car & Fdy., corn. (guar.).- 125e. Feb. 29 Holders of rec. Feb. 15 144e. Jan. II Holders of rec. Dee, 26 Common A and B (guar.) 15e Jan. 1 Holders of rec. Dee, 21s Preferred (guar.) First and second preferred (guar.)-- is' Jan. 1 Holders of rec. Dee. 216 Canadian Cottons, Ltd.. pref. (guar.)-- 'H34 ran. 4 *Holders of rec. Dec. 19 Diamond Shoe. corn.(guar.) 25e Jan. 2 Holders of roe. Doe. 21 Canadian Fairbanks Morse,6% Pt.(on.) 154 Jan. 15 Holders of rec. Dec. 31 Canadian General Electric. corn,(0)" $1 Jan. 1 Holders of rec. Dec. 15 614% preferred (guar.) 134 Jan. 2 Holders of rec. Dec. 21 8734e. ran, 1 Holders of reo. Dec. IS 300. Jan. 2 Holders of rec. Dec. 21 Second preferred (ome.) Preferred (guar.) 15c, Jan. 2 Holders of rec. Dec. 15 Distributors Group, Inc. (guar.) 250. Jan. 2 Holders of rec. Doe. 21 Canadian General Investment(guar.)._ _ Diversified Utility Invert., com.A (go.). *40c Jan. 1 *Holders of rec. Dec. 20 Canadian Industries. Ltd.,corn.(gust.). '6254c Jan. 80 *Holdall Of rec. Dec. 81 •154 Jan. . 20 1 *Holders of rec. Dec. 20 Preferred (guar.) preferred Jan. Dec. 7% (guar.) 15 *Holders of rec. 81 •134 Jan. 2 *Holders of rec. Doe. 21 Dolese & Shepard (guar.) Canadian International Trustee Shs_•18 .3176c. Jan. 2 Holders of rec. Dec. 316 250. Dome Mines, Ltd.(guar.) Canadian Oil Cos., Ltd.. pref. logs?.)... *2 Jan. 2 *Holders of rec. Dee. 19 1154 Jan. 2 Holders of rec. Dec. 15 Dominion Glass, corn.(guar.) Canadian Westinghouse, Ltd.,com.(qu.) *50c. Jan. 1 *Holders of rec. Dec. 21 Preferred (guar.) St,‘ Jan. 2 Holders of rec. Doe. 15 •$1 Jan. 1 "Holders of rec. Dec. 21 Common (extra) Dominion Stores. Ltd., corn. (guar.).-u30c. Jan. 2 Holders of rec. Doe. 154 Caned. Wireb. Boxes,(Artie. pt. A (qu.) 25e Jan. 2 Holders of rec. Dee. 15 u30c. Jan. 2 Holders of rec. Dec. 150 Common (extra) 40c Jan, 1 Holders of res. Dec. ISa Cannon Mills (guar.) Feb. 1 Holders of rec. Jan. 6 75o Jan. 1 Holders of rec. Dec. 1Ra Dominion Tar & Chemical. pref.(guar.) Capital Admin. Co., Ltd., pref.(gu.) Jan. 2 Holders of reo. Dee, 15 corn. (guar.) 1$1.25 Dominion Textile, 750 Jan. 2 Holders of roe. Dec. 21 Carnation Co., common 115( Jan. 15 Holders of rec. Deo 31 Preferred (guar.) 0191 Jan. 2 *Holders ot ree. Dec. 21 Preferred (guar.) •Ig Jan, 5 *Holders of rec. Dee. 21 Dow Drug Prof. (quiz.) •50e Jan. 1 *Holders of rec. Dec. 21 Carpel Corp. (guar.) Jan. 1 Holders of Teo. Nov.28 Draper Corporation (guar.) *5 Jan. 2'Holders of rec. Dec. 21 Case Lockwood & Brainard Driver-Harris Co.. 7% pref.(guar.).- *134 Jan. 1 *Holders of reo. Dec. 21 Extra •7 Jan. 2 *Holders of tee. Dee. 21 92 [VoL. 134. FINANCIAL CHRONICLE Name of Company. When Per Cent. Payable. Books Closest. Days Itsclustse. Name of Company. When Per Cent. Payable. Books alma. Days Inclusive. Miscellaneous (Continued). Miscellaneous (Continued). Dufferin Paving & Crushed Stone, 1st Goodyear Tire & Rubber, let pf.(qu.) -- $1.75 Jan. 1 Holders of roe. Dec. 16 pref. (guar.) Goodyear Tire & Rub.of Calif., pf.(qu.) *134 Jan. 2 'Holders of reo. Doe. 18 1% Jan. 2 Holders of reo. Dec. 23 Dunean Mills, pref.(guar.) Goodyear 'Fire & Rubber of Canada"13( Jan. 1 *Holders of ree. Des. 28 Dunham (J. H.) & Co.,corn.(guar.)... •134 Jan. 1 *Holders of rec. Dec. 18 Common (guar.) $1.25 Jan. 2 Holders of rec. Dee. 15 First preferred (guar.) Preferred (guar.) "134 Jan. 1 *Holders of rec. Dec. 18 134 Jan. 2 Holders of reo. Doe. 15 Second preferred (quar.) Gorton-Pew Fisheries,corn.(guar.) .75e. Jan. 2 *Holders of ree. Dec. 22 '154 Jan. 1 *Holders of rec. Dec. 18 DupIan Silk, pref. (guar.) 2 Jan. I Holders of reo. Dec. 150 Gotham Silk Hosiery, pref.(quar.) 134 Feb. 1 Holders of reo. Jan. 80 Du Pont(E.1.) de Nemours& Co. Gottfried Baking, Prof. (guar.) 134 Jan. 1 Holders of reo. Doe, 21 Debenture stook (guar.)I% Jan. 2 Holders of rm. Doe. 19 154 Jan. 25 Holders of rm. Jan. 9a Goulds Pumps, Inc., pref.(guar.) Eagle Warehouse & Storage (quay.) Graham-Palge Motors, lot pref. (guar.). •134 Jan. 1 Holders of reo. Dee. 15 *134 Jan. 2'Holders of rec. Dee. 26 Extra Granby Cons. Min. Smelt. & Pow.(go.) 12340 Feb. 1 Holders of roe. Jan. 154 *1 Jan. 2 *Holders of rec. Dec. 26 Early & Daniel Co., corn.(guar.) Grant 4W.T.) Co., COLD11101:1 (quar.).... 250. Jan. 1 Holders of reo. Doe. 11a •50o. Jan. 2 "Holders of reo. Dec. 19 Gray Processes Corp 7% preferred (guar.) •50o. Jan. 2 Holders of rm. Dee. 10 '114 Jan. 2'Holders of reo. Dec. 19 Eastern Food Corp.. olass A (quar.)-Extra *500. Jan. 2 Holders of reo. Dee. 10 750. Jan. 1 Holders of roe. .11119 1 Gray Telephone Pay Station (guar.). -- *50o. Jan. 1 Holders of rec. Dee. 19 Class A (guar.) 75o. Apr. 1 Claw A (guar.) Extra 750. July 1 "500. Jan. 1 Holders of roe. Doe, 19 Eastern Steamship Lines. 001:0.(qua?.).. 250. Jan. 2 Holders of rec. Dec. 18 •25e. Jan. 1 Holders of rec. Dec. 19 GrS apyrnu iarl Corp (quar.) First preferred (guar.) III Jan. 2 Holders of rec. Dee. 18 .25e. Jan. 2 Holders of rec. Dm. 15 Great Lakes Transit, 7% pref.(quar.).. *1% Jan. 2 Holders of rec. Dec. 19 Preferred (guar.) 871.4c Jan. 2 Holders of rec. Dec. 18 Eastern Steel Products, corn Groat Western Electro-Chemical50e. Jan. 2 Holders of rec. Dec. 18 1st preferred (quar.) •134 Jan. 2 Holders of rec. Dec. 21 Preferred (guar.) 134 Jan. 1 Holders of rm. Dee. 15 Great Western Sugar, pref. (guar.) Eastern Theatrea, Ltd., prof 1% Jan. 2 Holders of rec. Dec. 15a 354 Jan, 30 Holders of rec. Dec. 31 Eastern Trust (Halifax).(guar.) Greater N.Y.& Suffolk Title & Guar.._ *25o. Jan. 2 *Holders of reo. Doe. 28 *2 Jan. 2 *Holders of rec. Dee. 20 Eastern Utilities InvestingGreen (Daniel) Co., pref. (guar.) *134 Jan. 2'Holders of rm. Dec. 21 Green1ny (B.) Wire Co.. Ltd., pf. (qu.). 134 Jan. 1 Holders of rec. Dec. 16 $5 Prior preferred (guar.) $1.26 Jan. 2 Holders of reo. Nov.SO Eastman Kodak, corn. (guar.) $1.25 Jan. 2 Holders of rm. Dec. 56 Greenwald, Inc.. pref. (quar.) 13( Jan. I Holders of reo. Dec. 22 Common (extra) *87140 Jan. 1 *Holders of rec. Dec. 21 75e. Jan. 2 Holders of rm. Dee. 56 Greif (L.)& Bros., class A (guar.) Preferred (inar.) 7% preferred (guar.) '154 Jan. 1 *Holders of rec. Dec. 21 154 Jan. 2 Holders of rec. Dee. 5a Economy Grocery Stores (guar.) Greif Bros. Cooperage, class A (quar.)... 400. Jan. 1 Holders of rec. Dec. 150 25o. Jan. 15 Holders of rec. Jan. 2 Greyhound Corp., pref. A (guar.) Ecuadorian Corp.. corn.(guar.) •31.75 Jan. 1 "Holders of rec. Dee. 22 Go. Jan. 1 Holders of reo. Dec. 10 Griggs, Cooper & Co., pref.(guar.) Preferred 334 Jan. 1 Holders of roe. flee. 10 '154 Jan. 1 *Holders of rec. Jan. 1 Edmonton City D'y,Ltd.,634% pf.(eu.) 154 Jan. 2 Holders of rec Dec 15 Guar. Co. of North Amer.(quar.) *$1.50 Jan. 15 *Holders of rec. Dec. 31 Edwards(Wm.) Co..6% Pref.(guar.).- 154 Jan. 1 Holders of rec. Dec. 200 Extra 42.50 Jan. 15 *Holders of rec. Doe. 31 Guardian Bank Shares Investment Trust 7% preferred *3.4 Jan. 1 *Holders of rec. Dec. 20 Egry Register, class A (guar.) *50c. Jan. 2 *Holders of rec. Doe. 15 Preferred (quar.) '1834c Jan. 2 *Holders of reo. Dec. 15 Elder Manufacturing, corn. (guar.)._ Guardian Detroit Union Group (guar.). *50o. Jan. 25c. Jan. 2 Holders of rec. Dec. 19 2 *Holders of reo. Dee. 28 Guardian Investment Trust, Pt.(quar.) "25o. Jan. 2'Holders of reo. Dee. 15 Jan. 2 Holders of rec. Dec. 19 First preferred (guar.) 2 Guardian Public Utilities Invest. Trust Participating, class A (guar.) $1.25 Jan. 2 Holders of rec. Dec. 19 zsl $1 Electric Auto-Lite, corn.(guar.) Jan. 2 Holders of reo. Dee. 160 Preferred series I Jan. 2'Holders of reo. Dee. 15 154 Jan. 2 Holders of rec. Dee. 16a Guardian Ran Shares Invest. Trust7% preferred (guar.) Eleetrio Controller & Mfg.(guar.) $1.26 Jan. 1 Holders of roe. Dee. 190 Preferred series I *We. Jan. 2 *Holders of roe. Dee. 15 Electric Storage Battery, com.&pf.(qu.) $1 Jan. 2 Holders of rec. Dec. 7a Gulf 011 Corp. of Pa., $6 pref. (guar.).- $1.50 Jan. 2 Electric Vacuum Cleaner. corn.(guar.). *50o. Jan. 1 "Holders of rec. Dec. 22 Ourd prerfeC rre har dles (duar 500. Jan. 1 Holders of reo. Dee. 15 &. Co.. common (guar.) ) Emerson's Bromo Seltzer, Cl. A & B (qu.) "500. Jan. 2 "Holders of rec. Dee. 15 134 Jan. 1 Holders of rec. Dec. 15 Claw A & B (extra) •50c. Jan. 2 *Holders of rec. Doe. 15 Hachmelster-Lind Co., pref.(guar.)- - - "41.50 Jan. 2 *Holders of rec. Dee. 15 8% preferred (guar.) *50c. Jan. 2'Holders of rec. Doe, 15 Hahn Department Stores. prof.(qu.)... 154 Jan. 2 Holders of roe. Dee. 216 Emerson Elec. Mfg., pref. (guar.) Flail Flaking. pref.(guar.) 114 Jan. 1 Holders of rm. Dee. 20 387340 Jan. 1 'Holders of rec. Dec. 4 Endlcott-Johnson Corp., corn. (quar.)_. 75o. Jan. 1 Holders of rm. Doe. 18a Hamilton Woolen 142 Jan. 15 *Holders of rec. Doe. 31 Preferred (guar.) 134 Jan. 1 Holders of rec. Dec. 180 Extra 342.75 Jan. 15 *Holders of rec. Dec. 31 Equitable Bldg.(Denver) 7% pref.(qu.) '134 Jan. 2 *Holders of reo. Dee. 15 Hammermill Paper, pref. (guar.) •1% Jan. 2'Holders of rec. Dee, 15 Equitable Mtge.& Title Guar., pLA(qua *$1.25 Jan. 2 *Holders of rm. Doe. 19 Hanes(P. FL) Knitting. pref.(quay.)... •151 Jan. 2'Holders of ree. Dee, 21 Equitable Office Bldg., common OW equ Jan, 1 *Holders of rec. Dec. 29 5234o. Jan. 2 Holders of rec. Dee. 150 Hansen Glove, 7% prof.(guar.) Preferred (quar.) 134 Jan, 2 Holders of reo. Dec. 15 Harbauer Co., corn.(guar.) 1230 Jan. 1 Holders of rec. Doe. 234 Equity Corporation, pref. (guar.) 75e. Jan. 2 Holders of rec. Dee. 15 7% preferred (guar.) •1% Jan. I 'Holders of rm. Dee. 23 Ewa Plantation (quarterly) *600. Feb. 15 *Holders of rec. Feb. 5 igarMson-Waiker Refract., pref. (qu.)... 134 Jan 20 Holders of reo. Jan. 94 Faber. CoeA Gregg. pref. (qua?.) .134 Feb. 1 *Holders of roe. Jan. 20 Harrisburg Hotel Co., common *$1.75 Jan. 1 *Holders of reo. Dec. 20 Fairmount Creamery (Del.) corn.(WO; *40o. Jan. 2 *Holders of rec. Dec. 21 Common (extra) *50o. Jan. 1 *Holders of reo. Doe. 20 Preferred (guar.) 31.625 Jan. 2 *Holders of rec. Dee. 21 Hartford Connecticut Co., corn.(guar.). '2(10 Jan. 2 *Holders of rec. Dec. 21 Family Loan Society, corn.(guar.) •2543. Jan. 1 *Holders of reo. Dec. 12 Hathaway Bakeries, Inc., clam B 25e Jan. 15 Holders of reo. Jan. 5 Participating preferred (guar.) "8730 Jan. I *Holders of reo. Doe. 12 Haughton Elevator & Mach., pref. (till.) •15.4 Jan, 1 *Holders of roe. Dec. 20 Participating preferred (extra) "3730 Jan. 1 *Holders of reo. Dee. 12 Haverty Furniture, pref. (guar.) *Holderst f rec. Doe. 21 "3730 Jan. Faultlesa Rubber (guar.) 623ic Jan. I Dee. 16. Hawaiian Commercial & Sugar (mthly.) *25o. Jan. 5 *Holders of reo. Doe. 24 Federal American Co.. corn.(quar.).,. *We. Jan. 1 *Holders of reo. Dee. 24 Hazel Atlas Glass (quar.) "75o. Jan. 2 *Holden ot reo. Dee. 15 Preferred (guar.) *154 Jan. 1 *Holders of rec. Dec. 24 Extra "25e. Jan. 2 *Holders of rec. Doe. 15 Federal Bake Shops, pref.(guar.) '134 Jan. 1 "Holders of rec. Dee. 8 Helme (Geo. W.) Co.. corn.(quar.)_... 111.25 Jan. 2 Holders of rec. Doe, 104 Federal Compress &Warehouse. pf.(qu.) *134 Jan. 1 *Holders of rec. Doe. 22 Common (extra) Jan. 2 Holders of rec. Dee, 10a $2 Federal Motor Truck (guar.) 5o. Jan. 2 Holders of rec. Dee, lits Preferred (guar.) 134 Jan. 2 Holders of rec. Dee. 10a Federated Dept. Storm. corn. (guar.)._ 25e. Jan. 2 Holders of rec. Dee. 21 Hercules Motor Corp. (guar.) 20e. Jan. I Holders of rec. Doe. 180 Fidelity & Deposit Co.(Md.). *$2.25 Jan. 5 Holders of rec. Dec. 28„, Hershey Chocolate, corn.(guar.) $1.50 Feb. 15 Holders of rec. Jan. 254 Filene's (Wm.) Sons, pref. (guar.) 154 Jan. 2 Holders of reo. Dec. 21" Convertible preferred(guar.) $1 Feb. 15 Holders of rec. Jan. 250 Finance Co.of America (Baltimore)Convertible preferred (extra) $1 Feb. 15 Holders of rec. Jan. 250 Common A & B (guar.) 4.334 Jan. 1 Holders of reo. Doe. 8 20o. Jan. 15 Holders of reo. Jan. 5 Hershey Creamery Co., pref 7% preferred (quar.) 43%e. Jan. 15 Holders of roe. Jan. 5 za Hewitt Broe. Soap, pref. (guar.) Jan. 1 Holders of rec. Dec. 20 7% preferred A (qua?.) 8%o. Jan. 15 Holders of me. Jan. 5 Highland Dairy, 7% pref. (guar.) *1St Jan. 1 Holders of reo. Dee. 23 Firestone Tire dr Rubber. coin. (quar.) •250. Jan. 20 Holders Of rec. Jan. 5 Holland Furnace, corn.(quar) 25e. Jan. 1 Holders of rm. Doe. 15a First Bank Stock Corp.(St. Paul)(qu.).. "25e. Jan. 1 *Holders of rec. Dee. 15 .334 Jan. 1 Holders of reo. Dee. 15 Preferred First Finance Co., Detroit tal. A (gu.)..- •37)50 Jan. 1 *Holders of reo. Dec. 19 Holly Development (guar.) '254 Jan. 15 Holders of reo. Deo. 31 Preferred (guar.) •37rio Jan. 1 Holders of rec. Doe. 19 Holmes(D.H.) Ltd.,(guar.) 234 Jan. 2 Holders of rec. Dee. 24 First Finance Co. of Iowa. el. A (qu.)__ *3734c Jan. 1 *Holders of rec. Doe. 20 Holt. Renfrew & Co., Ltd., pref. (guar.) 1% Jan. 2 Holders of rec. hoe. 28 Class A (extra) 3.25e. Jan. 1 *Holders of rec. Dec. 20 Home Dairy Co., class A (guar.) *50c. Jan. 1 'Holders of rec. Dee. 20 Class B (guar.) *37)4o Jan. 1 "Holders of rec. Doe. 20 Honey Dew. Ltd.. $7 pref. (quar.) $1.75 Jan. 2 Holders of reo. Dee. 15 Preferred (quar.) *37%c Jan. 1 *Holders of reo. Doe. 20 Horn & Hardart Baking (qua.) $1.75 Jan. 1 Dec. 21 to Jan. 1 First Natlonai Stores, Inc., corn.(gu.) 62% Jan. 2 Holders of rec. Dec. 180 Hondaille-Ifershey Corp.,ol. A (guar.)- •6234e Jan, 2 Holders of reo. Dec. 18 First preferred (guar.) "1% Jan. 2'Holders of rec. Dee. 18 Household Fin.Corp.,com.A &B(au.)900. Jan. 15 Holders of rec. D
@FedFRASER