Full text of Commercial and Financial Chronicle : January 21, 1933, Vol. 136, No. 3526

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

The
allinirrct31
Volume 136

financial.

iircomdt,

New York, Saturday, January 21 1933.

Number 3526

The Financial Situation
HE Farm Parity or Domestic Allotment Bill
for the benefit of a group of selected farm
products, which last week passed the House of Representatives at Washington and is now before the
United States Senate, has been virtually without
influence upon the markets and can be said to have
affected the course of values of the articles and
products concerned in only minor degree. This no
doubt is to be attributed to the fact that the measure
is so radical and extreme that there is little likelihood that it can find its way to the statute book in
the present form, and must undergo drastic revision
before it can count upon the support of the United
States Senate and command the favor of the public
at large. Aside from that, a feeling of course prevails that there is little chance that a bill can be
carried to completion in any event at the present
lame duck session of Congress, and would encounter
the veto of President Hoover if it should, and that,
accordingly, the whole subject of farm legislation
will have to go over to the new Congress, the calling
of which in extra session after March 4 it seems impossible to escape.
However, the provisions of the measure are now
beginning to receive the consideration which their
importance merits and in certain directions a strong
determination is growing up to show the basic unsoundness of the underlying principles involved so to
guard against their being incorporated in any new
measure that may be devised for the purpose. The
textile industry in particular has begun to take
notice, and the present week has issued a statement
to show how far-reaching would be its adverse affects,
if the provisions regarding cotton contained therein
should by any possibility be enacted into law. This
is as it should be, since discussions regarding the
other products involved, and in particular wheat,
have been proceeding to the neglect of the cotton
clauses, when as a matter of fact the cotton goods
industry is likely to be more seriously affected than
any other. It was high time that these cotton interests should take cognizance of the serious consequences involved in the provisions relating to this
important staple. C. T. Revere, an exceedingly well
informed man regarding cotton and cotton goods,
and a person with unusual powers of analysis, went
into great detail last Saturday regarding this feature
of the bill in the weekly circular of Munds, Winslow
& Potter, and the present week the Cotton Textile
Institute has also issued a statement that must come
as an eye-opener to many of those who have been
inclined to pass lightly over the deleterious effects

T




that would be visited upon the cotton goods industry
if the provisions became a law.
The statement of the Cotton Textile Institute was
made public on Thursday, and it avers that prices
of staple articles of cotton,such as overalls, blankets
and bed sheets would be advanced 30 to 38c. apiece,
over the retail counter, if the bill under discussion
became a law. Furthermore, it is pointed out that
substitution of other materials enjoying a favored
competitive position through the imposition of the
Farm Parity tax on cotton would deprive the cotton
farmer and the cotton manufacturing industry of outlets for hundreds of millions of yards of fabrics and
many millions of pounds of yarns in various important markets which are enumerated by George A.
Sloan, President of the Cotton Textile Institute. It
is calculated by Mr. Sloan that the ratio price of cotton, or "fair exchange value," to become effective
next July with the new crop,would be 13.18c.a pound.
This would represent a tax of approximately 7c. per
pound if the present price prevailed at that time.
What now would be the effect of a 7c. tax on retail
prices? The Cotton Textile Institute furnishes the
answer as follows:
"Low-priced overalls now selling at 69c. would be
marked up to 98c., or an increase of 42%. Standard
quality overalls now selling at about $1 would have
to retail at $1.29, or an increase of 29%.
"On house dresses retailing at 39c., the new retail
price would probably be 49c., or an increase of 25%.
"Work shirts now retailing for 39c. would probably be advanced to 59c., a 50% increase. Standard
quality work shirts selling at 59c. would probably
have to retail at 75c., representing a 27% increase.
"A cotton blanket now selling at around $1 would
be advanced 38c., or 38%.
"A bed sheet now selling at 89c. will sell at $1.19,
an increase of 30c., or 34%.
"Bath towels selling at 19c. would be advanced to
26c., an increase of 37%.
A bedspread now selling at $2.95 would be increased to $3.50, an increase of 55c., or 19%.
"Duck trousers selling at retail at $1.95 a pair
would be advanced to $2.25, an increase of 30c.,
or 15%."
In the interval between the effective date of the
proposed tax and the new harvesting season, the
ratio price on cotton is fixed in the bill at 9c. per
pound. The destructive reaction of the 7c. tax on
cotton would be far-reaching, it is declared. Upwards of 400,000,000 cotton bags are used each year
as containers for flour, sugar, potatoes and similar
products. The tax on cotton, it is contended, would
create so great a price differential as to divert this

r.362

Financial Chronicle

bag business to containers made of untaxed material
such as paper and jute.
The outlet for cotton as toweling, we are told,
approaches 70,000,000 pounds per year, and additional millions of yards of cotton fabric are required
for table cloths and napkins. Paper is at present
a strong competitor for this business, and a heavy
tax on cotton, by favoring paper towels and napkins,
would bring great loss of business to cotton, it is
declared. A similar situation would be faced in
blankets. About 66,000,000 square yards of cotton
blankets are now manufactured annually. The tax
would increase the present retail price so largely,
it is pointed out, as to necessitate production of a
lighter and poorer quality cotton blanket to sell at
the old price, with consequent decrease in the consumption of cotton.
Double-weave cotton bath robes now compete with
single-weave wool robes, the statement says, but the
tax would destroy the competitive position of cotton
as against wool. Production of rayon-and-cotton
mixed fabrics amounts to over 200,000,000 square
yards per year. All-rayon fabrics would gain in
production at the expense of cotton-rayon mixtures,
should the burdensome tax be imposed on cotton, Mr.
Sloan states. Moreover, more than , 100,000,000
pounds of cotton twine, cordage, rope, &c., it is
asserted, are produced each year, and obviously the
position of cotton in this manufacture would be
sacrificed to jute, hemp, flax, manila and sisal.
Manufacture of pyroxylin-coated fabrics, with a cotton base, commonly called artificial leather, usually
exceeds 50,000,000 yards annually, but Mr. Sloan
says that the 7c. tax would place cotton at a serious
disadvantage compared to leather. In its application to more than 1,000 uses, Mr. Sloan finally declares, cotton in some form is daily faced with competition from jute, silk, wool, mohair, rayon, linen,
asbestos, leather, paper and various metals, and
would suffer a severe business setback if the tax
should be imposed.
Mr. C.T. Revere is no less emphatic in condemning
the cotton provisions as involving widespread disaster. His discussion of the subject is very elaborate,
and conclusive and convincing, and we shall endeavor
here to reproduce merely some of the more salient
paragraphs, as follows:
"Before giving further consideration to the effect
of this legislation on the domestic textile industry,
it might be just as well to examine the alleged benefits to agriculture. Assuming a fairly satisfactory
acreage reduction, and a crop of 12,500,000 bales,
and assuming a domestic consumption, or processing of 5,000,000 bales, the plan would work out about
as follows: On the 5,000,000 bales of domestic manufacture, the fund of the 'adjustment charge' basis
of 5c. per pound would produce about $125,000,000.
2%
After deducting administrative charges of 21/
there would remain for distribution among cotton
producers something less than $120,000,000, or a
little less than 2c. per pound, or $10 per bale, on a
2 million bales.
crop of 121/
"The above picture grants the plan 100% of its
ideal of perfect workability. It makes no deduction
for refusal to come in under the agreement. It
assumes that domestic consumption will not be materially curtailed by the imposition of the tax. It
assumes that the vast army of experts, economists,
investigators, mathematicians, auditors, checkers
and snoopers, to say nothing of the most stupendous
bookkeeping operation in any human undertaking,
1
2% of $125,000,000! In
will cost no more than 2/
reality, no one would underwrite the cost of the job




Jan. 21 1933

for five times that amount, but again it is assumed
that this cost will be met by appropriations from
another source.
"However, there is no assurance that the cotton
producer will benefit to the extent of this approximate 2c. per pound. In theory, it would mean that
with cotton at 7c. per pound, the producer would get
an additional 2c., giving him a total of 9c.
"But the unpleasant possibility that seems to have
escaped the discerning eye of our legislators who are
seeking to improve upon the workings of economic
law, is that one consequence of this measure will
be a decline in the basic price that will more than
offset the proceeds from the 'adjustment charge.'
"Various things may happen, and certain things
are bound to 'happen. Among the possibilities is
the chance that those growers who do not care to
come in under this plan, and scenting the likelihood
of higher prices, may plant freely, and their number
and output may be large enough to increase, instead
of reduce, total production. Moreover, climatic conditions and intensive cultivation have a good deal
more to do with increasing cotton output than the
mere area under cultivation.
"These are some of the possibilities amounting,
according to experience to probabilities. However,
' of a factual character to
we have certain elements
face. In the last four years we have seen our surplus
of raw materials pile up, not so much through increased production as through under-consumption.
If anyone believes that consuming groups, suffering
from flattened pay envelopes, menaced daily by the
threat of losing their jobs, in many cases facing
eviction by importunate landlords, are going to pay
a sales tax of 15% to 50% on cotton goods without
resorting to a genuine buyers' strike, 'he should
put on a pink sunbonnet and apply for a job in the
movies as a reincarnation of Pollyanna.
"The cumulative effect upon the American textile
industry would be devastating. It would be impossible to hold our export trade, in spite of a claptrap
offering of a rebate of the tax on goods designed for
export. The cost of doing export business would be
enormously increased, as the tax would have to be
advanced to the extent of millions of dollars, pending
export transactions and even more, the collection of
Sam notoriously slow in pay.
rebates from Uncle'
"The cotton manufacturer would have to advance
the tax to the extent of millions if he is to operate
freely, and if he does not operate in normal fashion
this means disconcerting slowing down in the American textile industry. No one can foretell what
would be the effect of a buyers' strike. We saw it
come in the heyday of post-war prosperity, and it
was one of the precipitating causes of the deflation
of 1920. Including waste, a Sc. tax would mean that
the American consumer would be mulcted 6c. and
'would pay out $3 per bale for every dollar per bale
received by the Southern cotton grower, even if the
fund produced by the 'adjustment charge' should
be honestly and efficiently administered.
"Without laying major emphasis on venality, we
think this whole proposition presents an opportunity
for waste and graft such as has not been presented
in the entire history of democratic government, and
in making this statement we do not even except the
noisome stench of our Prohibition regime.
"With creeping paralysis descending upon our
textile export trade, and the hostility with which
the buying public will greet this clumsy bid for the
political support of agriculture we regard a decline
' goods to the basis
in domestic consumption of cotton
of 4,000,000 bales as a distinct probability. It is
easy to envisage the consequence of such a catastrophe."
HE question of intergovernmental debt payments has also again been thrust forward by
the appearance of an article in the London "Times"
warning that any American attempt to "drive a

T

Volume 136

Financial Chronicle

bargain" would be doomed beforehand. An outline
of the article appeared in a special cable to the New
York "Times" from London, Jan. 15. Recalling Senator Borah's recent demand that a debt settlement
should depend on the settlement of disarmament,
tariff and currency difficulties, the London "Times"
is quoted as saying: "Other eminent Americans betray a tendency to regard the war debts as an asset
as well as a nuisance, and to think that in getting
rid of them they would be making a concession for
which they could reasonably expect concessions in
return. That is a dangerous attitude, for any attempt to use the debts as a bargaining weapon could
only complicate the situation and make for further
delay where there has been too much delay already.
The world cannot afford to postpone the solution
of the most urgent of its many problems just because
it is not yet ready with a cure for everything." The
New York "Times" correspondent adds that probably 99% of British opinion agrees with the London
"Times" that the war debts are a more urgent matter
than the stabilization of sterling. Complaints from
America that the depreciated pound is forcing down
prices are met, we are told, with shrugs of the shoulders. As yet there is no sign, it is stated, that
the British are prepared to stabilize their currency
before the middle of 1934, and then only tentatively.
Walter Lippmann, in his daily article in the New
York "Herald Tribune," for Thursday, gently chided
the British for this attitude, saying with much force:
"If these words truly reflect British opinion, they
will be read with anxiety in the United States, especially by those Americans who for nearly 10 years
have sought a reasonable solution of the debt question. For this statement in the London 'Times' is
hardly inspired by a desire to find a common ground
of understanding. The two nations will not arrive
at a solution if responsible persons begin addressing
each other in this tone of voice."
• But if Great Britain is to adopt an irreconcilable
attitude and to take the position that she will make
no concessions whatever in aid of American interests,
are there not other considerations that must be taken
into account? Congress is just now engaged in voting a largess to the wheat producers of this country.
Why? Because of the great shrinkage in the price
of wheat, caused mainly by the loss of the export
market for American wheat. Why has the United
States lost its export market for wheat? Chiefly
because Canada has recently had enormous crops
of wheat and has been able to undersell American
wheat. So long as this was the result of fair and
open competition, the wheat producers of this country had no cause for complaint. But now, through
the Ottawa agreements, actual discrimination is
made against the wheat grown in this country. As a
result of these Ottawa agreements, Canadian wheat
is now given a preference of 6c. a bushel over wheat
coming from the United States—that is, Canadian
wheat is allowed to enter the British market free of
duty, while American wheat is obliged to pay a duty
of 6c. a bushel. This is a virtual denial of the British
market to wheat grown in this country.
Must the United States tolerate this discrimination indefinitely and submit placidly to being shut
out of the British market? And as a consequence,
is our Congress to be called upon to make up the
difference in price because of the loss of the export
market, by voting a bonus to the American farmer
year after year? Just at the moment the Canadian




363

wheat producer has another advantage in the fact
that the Canadian dollar is greatly depreciated, ruling at a discount running all the way from 10% to
15%. If there were a settlement of the debt question
on the basis of the return of Great Britain to the
gold standard, the Canadian dollar would presumably also return to par and the special advantage
arising out of the depreciation of the Dominion dollar would be lost. But the London "Times" tells us
that Great Britain is not prepared to consider a
return to the gold basis as an offset to debt concessions made by the United States. If, on top of this,
the discrimination of 6c. a bushel against Americangrown wheat is to continue as a fixture, then we
have a one-sided arrangement where the United
States stands to lose everything, and to gain nothing.
Is the United states, in addition, to consent to a
cancellation of the debts owing to it, thereby throwing this in as a further gift? And while relieving
our debtors from further payments to us, are we to
tax the consuming public in this country to the extent
of several hundred millions a year by making good
the depreciation in price resulting from the loss of
the export market by the American wheat producer?
Are the people of the United States a simple-minded
•
folk?
LL praise is to be bestowed- upon President
Hoover for the emphasis lie lays upon the desirability of balancing the Federal budget, and likewise upon Secretary of the Treasury Ogden L. Mills
for his emphasis on the same point in the address
broadcast by him on Monday night. The arguments
in favor of such a course are overwhelming, and there
is absolutely nothing to be said on the opposite side
of the question. Both the President and Mr. Mills
recommend, as they have on previous occasions, a
sales tax. This does not appeal to us for the reasons
repeatedly mentioned in these columns. In the first
place, the sales tax is not to be of universal application, inasmuch as the President says that the intention is "to apply such a tax generally at a low rate
upon all manufactures except upon food and cheaper
grades of clothing." Here we have the customary
political leaning towards a class. If there is to be a
sales tax at all, it ought not make any exception at
all for the benefit of a favorite class.
But,in addition, there is the further objection that
even if the tax at first was to be at a low rate, there
would be certain to be a demand for an increase in
the same, as there usually is in the case of taxes of
that kind, since the process of raising the rate is so
simple and so easy. In our estimation, it would be
far better to raise the Federal tax on gasoline from
1c. a gallon to 2c. a gallon, even though the States
are also imposing taxes of the same kind. Mr.
Hoover is of the opinion that Federal income taxes
have been raised to the limit, and on that point he
makes a word of comment that has rather a strange
sound coming from such a source. He tells us, what
is indisputably true, that "One of the first economic
effects of the increases already made is the retreat
of capital into tax-exempt securities and the denudation of industry and commerce of that much available
capital."
This, while true, seems a curious statement to
make, nevertheless, seeing that through the whole
of the Hoover Administration the course pursued
has been to add to the volume of tax-exempt securities afloat. The whole of the big ma s of securities

A

364

Financial Chronicle

issued by the United States—the 90-day Treasury
bills, the one-year certificates of indebtedness, and
the Treasury notes running for a short term of years
—is exempt,not alone from the normal Federal taxes,
but from the surtaxes as well. The Treasury Department has been careful to avoid putting out any longterm issues of bonds, and the reason is presumed to
have been the fact that these long-term issues could
not be made exempt from the surtaxes, though they
are exempt from the normal taxes.
The President says: "It is essential that the Government undertake at an early moment the refunding
of outstanding high interest-bearing Liberty bonds
into bonds bearing a lower rate of interest. It is
essential, too, that a portion of our short-term borrowing should be converted into longer-term issues.
A balanced budget would greatly facilitate such an
operation." At another point the President says:
"For some time now long-term funds have not been
available for the public at reasonable rates. The
retirement of the Federal Treasury from the market
as a constant borrower, the balancing of the Federal
budget, and the refunding operations necessary to
bring the Government debt into better balance would
have a stimulating effect, would vitalize our entire
credit structure, and produce one of the'conditions
essential to continued recovery."
There is no disputing the foregoing statement, but
the new Administrution will be handicapped as far
as results are concerned by the fact that Government
operations have been so largely artificial, artificial
because of enormous purchases of United States Government securities by the Federal Reserve banks and
also artificial because the Treasury Department
would only put out obligations that were exempt
from the surtaxes as well as the normal taxes. The
new Administration presumably will not be in favor
of putting out wholly tai-exempt obligations, and
if it resorts to long-term issues it will be able only to
make such issues exempt alone from the normal Federal taxes. For that reason it will not be able to
point to such abnormally low rates of return as those
which the Hoover Administration has to its credit,
/
4 of 1% per annum for certificates of insuch as 3
debtedness running for a year, and Treasury bills
selling on a discount basis of only nine one hundreds
of one per cent, per annum (0.09% per annum).
However, the new financing will on that account be
on a sounder and healthier basis.
It deserves to be noted here that Treasury bills
have latterly been selling on the basis of a little
higher rate of return. It was last month that the
Treasury disposed of $100,039,000 of 91-day Treasury
bills on a bank discount basis of only 0.09%. This
meant that the Treasury obtained the use of $100,039,000 for a period of 91 days at the relatively trivial
cost of $22,009—in other words, that the cost was
virtually. next to nothing. At last week's sales of
$75,090,000 of 91-day bills the rate of return to the
purchasers of the bills was a little higher, being
0.20% per annum, and at this week's sale of $75,032,000 of 91-day Treasury bills the rate was 0.24%
per annum; but these are all abnormally low figures
and the difference is simply one of degree. The
sooner we get away from such abnormal conditions
the better.
HE Federal Reserve condition statements this
week show as another distinctive feature a
further curtailment of the holdings of United States

T




Jan. 21 1933

Government securities. The reduction this week is
$34,195,000, and it follows $38,522,000 reduction last
week, with the result that these holdings of United
States Government securities by the 12 Reserve institutions have been drawn down during the two
weeks from $1,850,910,000 to $1,778,193,000. Most
assuredly this is a step in the right direction, and
it is to be hailed with great satisfaction as a gradual
return to the normal and a drawing away from the
artificial conditions which have prevailed for so
long. Evidently the course pursued is that as bills
run off they are not being replaced with new bills.
And it deserves to be pointed out that the reduction
is entirely in that,division of the holdings designated
as "certificates and bills," which in the two-week
period have decreased from $1,133,595,000 to $1,047,012,000. The volume of Reserve credit outstanding
as measured by the total of the bill and security
holdings has fallen in very close correspondence with
the reduction in the holdings of United States securities, total bill and securities this week (Jan. 18)
being reported at $2,063,384,000 as against $2,098,003,000 last week (Jan. 11), and $2,139,847,000 two
weeks ago (Jan. 4). The changes in the other items
of the bill and security holdings, distinct from the
holdings of United States securities, have been of no
great consequence during the past week. The discount holdings are reported at $248,668,000 this week
against $248,151,000 last week, and the acceptance
holdings at $31,926,000 as against $32,362,000.
The amount of Federal Reserve notes in circulation increased during the week from $2,687,024,000
to $2,697,295,000, and the Reserve authorities report
an increase for the week in total money in circulation of $13,000,000. The increase in note circulation
reflects the disturbances at St. Louis caused by the
numerous small bank failures in the outlying districts of that city. The whole of the increase, and
more, too, occurred at the Federal Reserve Bank of
St. Louis, which reports a jump in its note issue from
$105,313,000 to $137,085,000. All the other Reserve
banks, with two minor exceptions,show a diminution
in the volume of their outstanding note issues.
Gold holdings of the 12 Reserve banks were further
increased from $3,222,533,000 to $3,236,441,000, and
this was without any additional transfer of gold held
abroad to this side, such gold being reported as a
separate item and not allowed to count as part of
the gold reserves. The gold so held abroad in the
statement for Wednesday night was given as $51,091,000, the same as on Wednesday of last week. It
deserves to be noted, however, that on Thursday a
decrease for that day of $25,101,200 in the gold held
abroad was reported, and this has been taken as
indicating that a corresponding amount of the gold
still held abroad has been repurchased by the Bank
of England, though all official information on that
point is lacking.
While Reserve note liability was increased by
reason of the additional amount of Reserve notes
passing into circulation, the deposit liabilities were
reduced during the week from $2,644,471,000 to
$2,607,872,000, mainly by reason of the reduction in
member bank reserve, which this week stands at
$2,545,151,000 as against $2,573,944,000 last week.
As a consequence of these changes and the increase
in the gold holdings already referred to (independent
of the transfer of gold from Great Britain to this
side), the ratio of total reserves to deposit and Federal Reserve note liabilities combined has risen dur.

Volume 136

Financial Chronicle

365

ing the week from 64.1% to 64.7%. The amount of 000,000 of gold exports in 1932 occurred in four
United States Government securities pledged as part months of the first half of the year. Gold exports
collateral for Federal Reserve notes in circulation in 1931 amounted to $466,794,000 and imports $612,decreased during the week from $384,400,000 to $354,- 119,000, imports in that year exceeding exports by
600,000. Foreign central banks have added slightly $145,325,000.
to their holdings of domestic acceptances, such holdings being reported at $40,724,000 the present week
HE New York stock market this week has been
as against $39,932,000 last week. Twelve months ago,
a dull affair, and in the absence of buying
on Jan. 20 1932, the acceptance holdings for account orders of any great consequence has shown a sagging
of foreign banks still stood at $285,299,000. Foreign tendency, though having rallied to some extent on
bank deposits with the Reserve institutions remained Thursday and Friday, without, however, the recovsubstantially unchanged during the week,being given eries having been fully maintained. Dealings on
as $20,539,000 Jan. 18 as against $20,629,000 on no day of the week reached a million shares, and
Jan. 11; on Jan. 20 last year these foreign bank the fluctuations in either direction have not been
deposits aggregated $81.830,000.
wide, except in the case of a few specialties, in which
dealings are not very active as a rule, alnong which
HE foreign trade of the United States for De- may be mentioned some of the department store
cember again makes a very poor showing. stocks and those of mail order concerns. The bond
Both exports and imports of merchandise are less market has been inclined to taper off after the recent
in value for that month than in November, and a sharp advances, and this has played its part in weakconsiderable reduction continues from a year ago. ening stock prices. There have been no new develExports for December amounted to $136,000,000 opments of any great moment. The slow progress
compared with $139,382,000 in the preceding month made with Congressional legislation and the growand $184,070,000 for December 1931. The decline ing certainty that the new Congress will have to be
for the month just closed from a year ago was $48,- convened in extra session after the 4th of March have
070,000, equivalent to a loss of 26.1%. Merchandise had a sort of dampening influence upon both the
imports in December were valued at $97,000,000 stock market and the bond market. Trade developagainst $104,466,000 in November and $153,773,000 ments have not been such as to encourage speculain December of the preceding year, a reduction last tion for a rise. There have been no great fluctuamonth from last year of $56,773,000, or 36.9%.
tions in the price of either cotton or wheat, though
Imports continue to make a more unsatisfactory wheat prices have been inclined to ease off after the
Showing than exports, as they have in most of the rise earlier in the month. The May option for wheat
months of last year. Furthermore, the marked cur- in Chicago closed at 47/
1
2c. yesterday as against
tailment in the value of both merchandise exports 48%c. the close on Friday of last week. The price
and imports, which first made its appearance late of cotton has held pretty steady,and middling upland
in 1930, became more pronounced late in 1931, and spot cotton on the New York Cotton Exchange was
is now revealed in the less severe declines for the quoted at 6.25c. as against 6.25c. on Friday of last
closing months of 1932. For that year the prelimi- week.
nary report on the foreign trade of the country
Copper prices have moved fractionally lower both
shows merchandise exports valued at $1,617,877,000 for export and on domestic account in the absence
against $2,424,289,000 in 1931, a reduction last year of any considerable demand for the metal. The oil
of $806,412,000, or 33.3% lower. Imports of mer- market is again falling into a state of demoralizachandise in 1932 amounted- to $1,322,665,000 com- tion, and there have been further reductions in the
pared with $2,090,635,000 for 1931, the loss in im- prices of both crude oil and gasoline in different
ports being $767,970,000, equivalent to 36.7%.
parts of the country. The steel trade remains in
It is fully 27 years since the foreign trade of the the same uncertain state as before. The "Iron Age"
United States has been at so low a value as in the reports an increase in the production of steel from
year just closed. The balance of trade for December 15% of capacity to 16%, but at the same time speaks
continued on the export side, amounting for that of pronounced price weakness, and the present week
month to $39,000,000; in December 1931 the export there has been much talk of the probability of a
balance was $30,297,000. For the year 1932 there further reduction in the wages of steel operatives.
was an export balance of $295,212,000, compared The "Iron Age" remarks that "unless there is a
with an export balance of $333,654,000 in 1931.
continued gain in orders from the miscellaneous conCotton exports in December were a little higher sumers of steel, together with some pick-up in buildthan in November, both in quantity and value. For- ing construction and railroad buying, the present
eign shipments last month were 1,058,900 bales, rate of steel operations may not hold, as the conagainst 1,019,500 bales in November; in December tinuance of automobile manufacturing schedules is
1931 they were 1,195,300 bales. The value of cotton dependent upon the development of a larger volume
exports last month was $38,920,000 against $47,- of retail sales of cars.
304,000 in December of the preceding year. For
The Procter & Gamble Co. reduced the quarterly
exports other than cotton the value was down to dividend on its common stock from 50c. a share to
$97,000,000, compared with $136,766,000 in Decem- 371/
2c. a share, after having last year reduced from
ber 1931. This is a decline of 29.1%,indicating that 60c. a share to 50c. a share. The Centrifugal Pipe
cotton last month was in a better position as to Corp. of Delaware announced quarterly dividends
exports than "all other" merchandise.
of 10c. a share for the year 1933 as against the 15c.
Gold imports last month again increased to very a share previously paid each quarter. The United
high figures, the total being $101,872,000, while gold States Pipe & Foundry Co. announced four quarterly
exports were only $13,000. For the year gold exports dividends of 12/
1
2c. a share on common for the year
were $809,528,000 and imports $364,315,000, the ex- 1933 as against quarterly distributions of 50c. a
cess of exports being $445,213,000. About $675,- share made on this issue from Dec. 15 1928 to and

T

T




366

Financial Chronicle

including Jan. 20 1933. The Cuneo Press, Inc., reduced the quarterly dividend on the no-par common
1
2c. a share to 30c. a share, and the
stock from 62/
Quebec Power Co. decreased its quarterly dividend
on the no-par common stock from 371/2c. a share to
25c. a share.
In the foreign exchange market the price of sterling bills has been well maintained, but the French
franc has manifested weakness, and large amounts
of gold are now coming from France as well as from
India, England, Holland and other countries. Call
loans on the New York Stock Exchange have again
remained unaltered at 1% throughout the week.
Trading has been very light. At the half-day session on Saturday last the dealings on the New York
Stock Exchange aggregated 360,910 shares; on Monday they were 868,333 shares; on Tuesday, 663,735
shares; on Wednesday,687,085 shares; on Thursday,
624,040 shares, and on Friday, 707,337 shares. On
the New York Curb Exchange the sales last Saturday
were 66,100 shares; on Monday, 115,720 shares; on
Tuesday, 101,230 shares; on Wednesday, 84,365
shares; on Thursday, 91,665 shares, and on Friday,
84,056 shares.
As compared with Friday of last week, prices are
irregularly changed, but slightly lower, as a rule.
General Electric closed yesterday at 14% against
1534 on Friday of last week; Brooklyn Union Gas
at 80 against 80%; North American at 291/
4 against
30/
1
4; Standard Gas & Elec. at 133
/
4 against 14½;
Consolidated Gas of N. Y. at 591/2 against 62;
Pacific Gas & Elec. at 29/
1
2 against 30; Columbia
Gas & Elec. at 16% ex-div. against 171/
8; Electric
1
2 against 71/4; Public Service
Power & Light at 6/
/
8; International Harvester
of N. J. at 53 against 537
at 217
/
8 against 23%; J. I. Case Threshing Machine
at 46 against 47%; Sears, Roebuck & Co. at 1934
against 20%; Montgomery Ward & Co. at 133
/
4
against 14; Woolworth at 32/
1
2 against 351/
8; Safeway Stores at 41 against 417
/8; Western Union Telegraph at 26/
1
2 against 28%; American Tel. & Tel. at
8; International Tel. & Tel. at
105% against 1067
/
7/
1
2 against 7½; American Can at 601/
4 against 61;
4 against
United States Industrial Alcohol at 253
/
8;
26½; Commercial Solvents at 11% against 117
Shattuck & Co. at 9 against 87
/8, and Corn Products
at 53/
1
2 against 551/
4.
Allied Chemical & Dye closed yesterday at 86%
against 87% on Friday of last week; Associated Dry
Goods at 4 against 4/
1
4; E. I. du Pont de Nemours
at 40 against 40; National Cash Register "A" at 734
against 8; International Nickel at 8 against 8; Timken Roller Bearing at 16% against 16/
1
4; JohnsManville at 20/
1
2against 22½; Gillette Safety Razor
at 177
/8 against 19; National Dairy Products at 15/
1
2
against 16%;Texas Gulf Sulphur at 24 against 241/
8;
Freeport Texas at 231/2 against 25%; American &
Foreign Power at 6% against 7/
1
4; United Gas Improvement at 201/
8 against 20%; National Biscuit at
397
/8 against 40½; Coca-Cola at 79/
1
4 against 79;
Continental Can at 41 against 411/
4; Eastman Kodak
2;Gold Dust Corp. at 151/
at 58% against 591/
8 against
4 against 15%; Para15½; Standard Brands at 151/
mount Publix Corp. at 1% against 21/
8; Kreuger &
8; Westinghouse Elec. & Mfg. at
Toll at 1/
8 against 1/
/
8;
29% against 30; Drug, Inc., at 36 against 357
Columbian Carbon at 33 against 34%; Reynolds Tobacco class B at 33 against 31%; Liggett & Myers
class B at 62 against 58½; Lorillard at 13 against
8, and Yellow Truck & Coach at 3% against 3%.
131/




Jan. 21 1933

The steel shares have moved lower with the rest.
United States Steel closed yesterday at 291/
8 against
301/
8 on Friday of last week; United States Steel preferred at 63 against 63½; Bethlehem Steel at 153
/
8
against 15%, and Vanadium at 12/
1
2 against 12%.
In the auto group, Auburn Auto closed yesterday at
47
8 against 521/
8 on Friday of last week; General
Motors at 13% against 137
/
8; Chrysler at 14 against
15%; Nash Motors at 14% ex-div. against 14; Pack1
2against 2%; Hupp Motors at 25
ard Motors at 2/
/
8
against 27
/8 bid, and Hudson Motor Car at 4%
against 5. In the rubber group Goodyear Tire & Rub1
2 against 17/
ber closed yesterday at 16/
1
2on Friday
of last week; B. F. Goodrich at 5 against 5½;United
States Rubber at 41/2 against 5 bid, and the preferred
at 10 against 10%.
The railroad shares have moved somewhat erratically. Pennsylvania RR. closed yesterday at 18/
1
4
1
2 on Friday of last week; Atchison Toagainst 17/
/8 against 4334; Atlantic Coast
peka & Santa Fe at 427
4; Chicago Rock Island &
Line at 21 against 201/
Pacific at 4 bid against 4½; New York Central at
18% against 19%; Baltimore & Ohio at 9% against
1
2against 16; Union Pacific
101/2; New Haven at 15/
at 75/
1
2 against 75; Missouri Pacific at 31/4 against
8 against 18%;Missouri33
4;Southern Pacific at 181/
Kansas-Texas at 7 against 6%;Southern Railway at
5% against 6; Chesapeake & Ohio at 28 against 27½;
2 against 16, and Great
Northern Pacific at 141/
/8 against 934.
Northern at 97
The oil shares have suffered from the demoralization of crude oil prices as well as gasoline. Standard
Oil of N. J. closed yesterday at 30% against 311/
4 on
Friday of last week; Standard Oil of Calif. at 25
/8 against 16½;
8;Atlantic Refining at 157
against 251/
8 against 13%. In the copper
Texas Corp. at 131/
group Anaconda Copper closed yesterday at 7%
/8 on Friday of last week; Kennecott Copagainst 77
per at 91/
8 against 9½; American Smelting & Refin4 against 13; Phelps Dodge at 5 against
ing at 131/
1
4, and
5½; Cerro de Pasco Copper at 7 against 7/
Calumet & Hecla at 2% against 2% bid.
EALINGS on stock exchanges in the leading
European financial centers were marked by
considerable irregularity in price trends, this week.
The tone was soft in most sessions on the London
Stock Exchange, while more drastic downward movements developed on the Paris and Berlin exchanges.
There were periods of improvement in every case,
but they were much less marked than the recessions.
Trading was quiet on all the European exchanges,
as there was little public interest in securities. Reports of the unsatisfactory trend at New York were
a decided influence on the foreign markets, where
the American position again is causing concern.
Agitation for inflationary expedients by some members of Congress is taken far more seriously in Europe
than it is here, and investors are inclined to hold
aloof while awaiting developments. Recent advances
on the European exchanges, moreover, appear to have
discounted the modest improvement in trade and industry reported in the respective countries, and further indications of the general business trend are
now awaited.
The London Stock Exchange was quiet and uncertain in the initial session of this week. British
funds were slightly improved at first, but they reacted later and closed with small net losses. Industrial stocks also lost a little ground, but a buying

D

Volume 136.

Financial Chronicle

movement of substantial proportions developed in
South African gold mining stocks. International
securities were sharply depressed. The uncertain
tone was continued in further quiet dealings at
London, Tuesday. South African mining shares remained in favor, owing to reports that the Hertzog
Cabinet might fall and give way to drastic inflationists. British funds were easy, but industrial
stocks reflected better demand. German bonds and
Anglo-American equities were severely lower in the
foreign section. Business remained very modest in
Wednesday's session, but a steadier undertone was
reported.
British funds showed further small losses, but
industrial stocks were materially better. Home
railway stocks receded on poor traffic returns and
a decision by the companies to accept a ruling for
a £1,000,000 reduction in wages of employees,instead
of the £4,000,000 decline demanded. International
securities were firm. In Thursday's session, South
African mining stocks again were in excellent demand, but most other sections were easier. British
funds showed only small fractional changes, and
similarly small recessions were recorded among industrial securities. Oil shares were especially heavy
in the international group, while others also declined.
Dealings yesterday were marked by slight ease in
British funds, but other sections improved.
The Paris Bourse was dull, Monday, and almost
all issues were marked down to lower levels. There
was not enough trading in most instances to induce
any great change in quotations. The mid-month settlement was effected easily, with money at 1/
4% for
the carryover. Prices declined more sharply, Tuesday, as rumors were circulated that the budgetary
problem may cause a Cabinet crisis. French stocks
and international securities were alike subjected to
liquidation, with net declines rather large in many
instances. A recovery developed on the Bourse in
Wednesday's dealings, and most of the previous
losses of the week were regained. Copper stocks
and other securities in the metals group showed best
results. Some Parliamentarians expressed a determination early in the day to balance the budget,
and this also aided sentiment. The decline was resumed Thursday, but the recessions were not large.
The political situation again was dominant, as holders of securities considered liquidation advisable in
view of drastic Socialist proposals for budgetary
procedure. The trend yesterday was irregular, but
most stocks improved.
Prices drifted slowly lower in the opening session
on the Berlin Boerse, with mining stocks more
sharply affected than others. Berlin reports indicated that professional selling was responsible for
most of the decline. The movement toward lower
levels was resumed Tuesday, with the momentum increased. The opening was soft and prices continued
to drop until just before the close, when a modest
recovery occurred. Reichsbank shares fell four
points, and similar recessions appeared in many
other prominent issues. The tone was uncertain
Wednesday, some issues advancing while others declined. The changes were unimportant in almost
all cases. Irregular movements also prevailed Thursday, at Berlin. Early dealings were marked by declining quotations, but a recovery toward the close
wiped out most of the recessions and in some instances net gains were registered. Trading was
light and confined chiefly to professional circles,




367

reports said. Modest advances were recorded in
quiet trading yesterday.
XPEDITIOUS American action on some of the
weighty political and economic problems before
the world to-day may result from conferences which
were held in Washington during the last two days
between leaders of the present Administration and
President-elect Roosevelt and his advisers. Mr.
Roosevelt conferred with Secretary of State Stimson
Thursday, and with President Hoover yesterday.
The meeting at the White House, which is the second
during the present interregnum, was arranged at the
suggestion of Mr. Roosevelt, who made it clear that
he regarded the occasion as a suitable one for a
general discussion of American foreign policies
rather than as one for the settlement of any specific
problem. It was persistently reported in advance
of the meeting, however, that the intergovernmental
debt problem would occupy the President and the
President-elect more than any other. This is due,
dispatches intimated, to the desire of the British
Government to reopen the question as speedily as
possible, with the aim of effecting a readjustment of
the debt settlement before the next payment is due
on June 15.
An official announcement, issued by the White
Hmise after the close of the conference yesterday,
indicated that procedure regarding review of the
intergovernmental debts and the proposed World
Economic Conference formed an important part in
the discussions between President Hoover and
President-elect Roosevelt. The meeting was attended
by Secretary of State Stimson, Secretary of the
Treasury Mills, Norman H.Davis and Professor Raymond Moley. It resulted in agreement only on preliminary procedure, which is to be discussed with
foreign governments entirely through the usual diplomatic channels, while definitive discussions will
apparently be reserved until after Mr. Roosevelt
takes office in March. President Hoover, according
to Washington reports, apparently has accepted the
views of Mr. Roosevelt, as no mention was made of
the joint commission which the President proposed
to set up for immediate review of the debt problem.
The White House statement, upon which all the conferees agreed, declared that the British Government
has asked for a discussion of the debts. "The incoming Administration," it was added, "will be glad to
receive their representatives early in March for this
purpose. It is, of course, necessary to discuss at
the same time the world economic problems in which
the United States and Great Britain are mutually
interested, and therefore that representatives should
also be sent to discuss ways and means for improving the world situation. It was settled that these
arrangements will be taken up by the Secretary of
State with the British Government."

E

CONOMIC experts of the leading nations, meeting in Geneva as the Preparatory Economic
Commission, adopted a report Thursday containing
an agenda for the proposed World Economic and
Monetary Conference, which it is hoped will meet
in London this spring or early summer. The report
will be submitted to the Organizing Committee of
the proposed conference next week, when an actual
date for the meeting may be set. The agenda provides
that the conference will deal with six main themes:
1, monetary credit policy; 2, prices; 3, resumption

E

368

Financial Chronicle

of the free movement of capital; 4, restrictions on
international trade; 5, policies relating to tariffs
and commercial treaties; 6, organization of production and trade. Intergovernmental debts were not
included in the agenda, in deference to American
wishes, but the committee remarked in its report that
the debts, until settled, "will remain an insuperable
barrier to economic and financial reconstruction."
In a general statement on the program of the
conference, the committee called for speedy development of a comprehensive plan to prevent collapse of
the present social system. The report also urges
restoration of the gold standard, declares that abolition of exchange control is essential, insists on complete abrogation of all emergency trade prohibitions
and quotas and holds that monetary restoration is
impossible without moderation and stabilization of
tariff policies. "It will not in our judgment be possible to make substantial progress by piecemeal
measures," the experts stated in a preamble to the
agenda. "A policy of nibbling will not solve this
crisis. We believe the governments of the world
must make up their minds to achieve a broad solution by concerted action along the whole front. Action in the field of eronomic relations depends largely
upon monetary and financial action, and vice versa.
Concerted measures in both fields are essential if
progress is to be made in either." The American
delegates, Professors Edmund E. Day and John H.
Williams, left Geneva Thursday for their return to
the United States.

Jan. 21 1933

crises in Rumania and Greece. The National Peasant party Government in Rumania, headed by Premier Juliu Maniu, resigned on Jan.12 owing to difficulties with King Carol, who insisted on retaining
members of his personal following as powerful
officials in the local government affairs of Bucharest. King Carol requested Alexander Vaida-Voevod, also prominent in the National Peasant party,
to form a new Government, and this task was competed last Saturday. The new regime is similar to
that headed by M. Maniu, all the Ministers being retained. The coalition Cabinet in preece, headed by
Premier Panayoti Tsaldaris, resigned Jan. 13, after
an all-night session of the Parliament marked by
accusations that a royalist dictatorship impended
and that the foreign debt policy of the Government
was calculated to cause further depreciation of the
drachma. President Zaimis asked the Progressive
leader, George Kaphandaris, to form a new Government last Saturday, but the latter did not succeed
in this endeavor. Eleutherios Venizelos, liberal
leader and former Premier, was again called to the
helm and a new regime was announced Monday.
M. Kaphandaris was named Finance Minister in the
new Cabinet, while Andrew Michalakopolous was
appointed to the Ministry of Foreign Affairs.

ONSIDERATIONS affecting other nations were
paramount this week in the protracted dispute
between China and Japan regarding the Japanese
occupation of Manchuria and the advance into Jehol
Province, which was signalized two weeks ago by
ATIONAL rivalries in southeastern Europe, to- the capture of Shanhaik wan. The United States
gether with unsettled political conditions in Government reiterated, Monday, that it will not
each of the Balkan States, continue to give point to• recognize any situation, treaty or arrangement
the time-hallowed description of the area as the brought about by means contrary to the Kelloggpowder-keg of Europe. The dangers to European Briand treaty outlawing war as an instrument of
peace that lurk in the countries of southeastern national policy. The State Department in WashEurope are too numerous to detail. They have cer- ington affirmed its previous stand concurrently with
tainly not been lessened since 1914 by splitting of the meeting of the League Committee of Nineteen,
the territory into a still greater number of inde- in Geneva, for the purpose of fostering conciliation
pendent or semi-independent States, subject in every of the dispute. The Committee was charged by the
case to the machinations of the greater Powers and Assembly, more than a month ago, with finding
to internal discords that cause government crises means for peaceful adjustment of the ever-growing
with tiresome frequency. In an international sense,- quarrel between China and Japan. Its first enFrench and Italian aims are at present dominating deavors were rendered fruitless by objections to a
the current of events in the Balkans. French influ- proposal for inviting the participation of the United
ence in the Little Entente countries of Yugoslavia, States and Russia, voiced by Japan. The problem
Rumania and Czechoslovakia interferes decidedly of procedure again occupied the Committee this
with Italian expansionist aims to the East. Italy week, but the League body was clearly inclined to
continues to cement her ties with the tiny country adopt a sterner attitude toward Japan, probably as
of Albania, on the Eastern shore of the Adriatic, and a result of the restatement of the American attitude.
with Hungary. International interest in the situa- The Committee bargained with the Japanese repretion was aroused to a high pitch last week when sentatives over acceptable terms of conciliation, but
Socialists in Austria revealed that a huge shipment it is exceedingly doubtful whether any genuine progof arms was in progress from Italy to Hungary, via ress will be made in this fashion.
Austria. The Austrian Government made conflictThe undeclared war in Jehol, meanwhile, has been
ing statements about this shipment at first, and later hampered by extremely cold weather, which not only
said that any portion of the shipment still in Austria made transportation difficult but also restricted
would be returned to Italy. Parliamentary debate actual fighting through freezing of the cooling water
on the matter was hushed in Vienna, while discreet jackets on machine guns. Mixed brigades of Japasilence was preserved in Rome, Budapest and even nese and Manchukuan troops began the penetration
in Paris. Four years ago an almost exactly similar of Jehol across the eastern and southern frontiers
incident occurred, and the international flurry then last week. Military experts believe that no attempt
caused took weeks to quiet. It is still possible that will be made to push on to Jehol City, the capital,
the present incident will cause Parliamentary inter- until late this winter or early spring. It is already
pellations and international recriminations, espe- apparent, however, that the proposed advance and
conquest of Jehol Province will be a highly costly
cially in the Little Entente States.
Internal political strains in southeastern Europe adventure. Chinese guerilla forces in Manchuria
have been reflected within the last 10 days by Cabinet and Jehol already are harrassing the Japanese

N




C

Volume 136

Financial Chronicle

troops effectively. The Japanese are relying mainly
on aerial bombing in their efforts to combat the Chinese irregulars, but the attacks of the latter are
unabated,according to a Peiping dispatch of Wednesday to the New York "Times." The native guerilla
forces, called "Big Swords," also are operating in
the subjugated territory of Manchuria. It was reported from Shanghai, Thursday, that a group of
380 Big Swords was found frozen to death after
being besieged for two weeks by Japanese troops on
a southeastern Manchurian mountain top. Apart
from such incidents,the Japanese troops are believed
to be somewhat at a disadvantage for the time being.
Some reports state, indeed, that substantial numbers of the Manchukuan troops are deserting and
joining the Chinese irregulars.
More important than the guerilla operations are
extensive preparations by the Manchurian Marshal,
Chang Hsiao-liang, for combating the Japanese
movement into Jehol. General Chang has been
charged with the defense of Jehol by the Nanking
.Nationalist Government of China, which is immersed
in its usual intrigues and has offered no assistance
in the unequal struggle. The more experienced observers in China are not inclined to think that Marshal Chang will send any great part of his forces into
Jehol for defense of the Province. His armies are
very numerous, however, and even a relatively small
defense force is confidently expected to number many
thousands. Several sizable armies have been sent
into Jehol already, and placed under the command
of General Wang Fu-lin, a former official of the
Manchukuan Government, who rejoined the Chinese
opposition. Additional troops have been concentrated at various points south of the Great Wall.
Such armies, when augmented by the Big Swords,
probably will test the mettle of the Japanese invaders, even though they are inadequately equipped
and led. Fears are current in North China that
Japan will occupy important cities, such as Tientsin
and Peiping, in order to make the occupation of
Jehol easier and its tenure safe. Japanese officials
continue to assert that they have no plans at present
for any extension of the advance south of the Great
Wall.
The impending change in the Administration at
Washington made advisable a clarification of the
American attitude with regard to the Japanese conquest of Manchuria and the puppet State of Manchukuo set up there. Dispatches from the capital,
Monday, indicated that Secretary of State Stimson
conferred with President-elect Roosevelt on this
problem a week earlier, with the result that Mr.
Roosevelt assured the Secretary there would be no
change in the American policy after March 4. Leading European Powers and officials of the League of
Nations were informed to this effect through American diplomatic officers, and similar information
was given foreign envoys when they called at the
State Department in Washington. President-elect
Roosevelt issued a statement in this city, Tuesday,
which was viewed as acceptance of the so-called
Hoover-Stimson policy with regard to Manchuria.
"I am wholly willing to make it clear," he said,"that
American foreign policies must uphold the sanctity
of international treaties."
The American policy on Manchuria, which is believed to have prevented formal recognition of the
Manchukuan Government by all nations with the
exception of Japan, was stated by Secretary Stim-




369

sou in identical notes to Japan and China on Jan. 7
1932. "The American Government," the notes said,
"deems it to be its duty to notify both the Imperial
Japanese Government and the Government of the
Chinese Republic that it cannot admit the legality
of any situation de facto nor does it intend to recognize any treaty or agreement entered into between
those Governments, or agents thereof, which may
impair the treaty rights of the United States or
its citizens in China, including those which relate
to the sovereignty, the independence, or the territorial and administrative integrity of the Republic
of China, or to the international policy relative to
China, commonly known as the open-door policy;
and that it does notintend to recognize any situation,
treaty Or agreement which may be brought about by
means contrary to the covenants and obligations of
the Pact of Paris of Aug. 27 1928, to which treaty
both China and Japan as well as the United States
are parties." At the State Department it was explained, reports said, that reiteration of the American stand was due to rumors that the United States
was relaxing its attitude. It was suggested in some
quarters, according to Washington press correspondents, that the action might serve to nerve the
League Committee of Nineteen to frame a strong
recommendation to the Assembly with reference to
the Japanese action. No further steps are contemplated by the State Department, it was added.
Sessions of the League Committee of Nineteen, in
Geneva, were preceded early this week by reports
from Tokio that Japan might withdraw from any
participation in League consulations on Manchuria,
much as Germany withdrew from the General Disarmament Conference last year. There were also
intimations by the spokesman of the Tokio Foreign
Office that a modified draft of the Committee resolution for conciliation might prove acceptable. When
the Committee began its task, Monday, it soon became apparent that such veiled threats and suggestions were quite ineffective. The Committee decided
at a secret meeting, a Geneva dispatch to the New
York "Times" said, to give Japan 48 hours for submission of new proposals for settlement of the Manchurian conflict. Further failure of the conciliation
efforts would necessitate a final report, it was remarked. The Committee adjourned until Wednesday to await the fresh proposals.
On reassembling, the Committee was informed
that Japanese objections to the draft resolution were
based mainly on antipathy to the proposal for inviting Russian and American collaboration in the task
of conciliation. The Committee countered by asking
the Japanese delegates if they would accept the draft
resolution with the invitation eliminated. Yusoke
Matsuoka, the chief Japanese representative, was
clearly nonplussed by this request, Geneva dispatches
'said. After communicating with Tokio, he indicated Thursday that Japan was prepared to accept
American and Russian participation, provided the
Committee would delete from the draft resolution
phrases which are considered inimical to recognition
of Manchukuo by member States of the League.
Much impatience with the Japanese attitude was
expressed at Geneva, reports from that center indicated. The impression prevailed that Japan would
prevent conciliation by one means or another, and it
was suggested that the Committee would resort to
its only remaining expedient of publishing a report
containing a statement of facts regarding the dis-

Financial Chronicle

370

pute, and recommendations "deemed just and proper
in regard thereto."
ROWING discontent in Japan was reflected this
week in an official Government report on the
Communist movement in that country, and in an
attack by striking employees on the Yokohama headquarters of the Singer Sewing Machine Co. The Government report indicated that some 7,000 Japanase
adherents of Communism were arrested last year, of
whom 2,200 still are detained. Previous press accounts of the raids on Communist meetings and headquarters were fragmentary,owing to laws against the
publication of such news. When the disclosure of the
extent of the movement finally was made, Wednesday, it occasioned great surprise. In the raid on the
Singer Sewing Machine Co. offices in Yokohama, the
same day, about 100 disgruntled employees participated. They were reinforced by many thugs, dispatches said. The four-story building was sacked,
records and furniture were destroyed or carried off,
and several loyal Japanese employees were injured.
Police quickly arrived at the scene and arrested more
than 100 of the vandals. The raid marked the culmination of a protracted dispute between the company
and its employees regarding all phases of the business. Agitators are said to have persuaded some
employees that they were being victimized by foreign capitalists, and the malcontents demanded,
among other things, that the business be given to the
employees. After the incident, United States Ambassador Joseph C. Grew called on Foreign Minister
Uchida and requested that adequate protection be
furnished for the quarters of the company. Baron
Uchida agreed readily, it was indicated.

G

HERE have been no changes the present week
in the discount rates of any of the foreign
Central banks. Present rates at the leading centers
are shown in the following table:

T

DISCOUNT RATES OF FOREIGN CENTRAL BANKS.

Country.
Austria_ —
Belgium_ ...
Butga.ria—
Chile
Colombia.Czechoslovakia.—
Danalg
Denmark..
England
Estonia....
Finland.—
France....
Germany..
Greece_ __ _

Rate in
Date
Effect
Jan.20 Established.

Predons
Rate.
7
234
934
534
6

6
354
854
434
5

Aug. 23 1932
Jan. 13 1932
May 17 1932
Aug. 23 1932
Sept. 19 1932

434
4
334
2
534
614
214
4
9

Sept. 24 1932 5
July 12 1932 5
Oct. 12 1932 4
June 30 1932 234
Jan. 29 1932 634
Apr. 19 1932 7
Oct. 9 1931 2
Sept.21 1932 5
Dee. 3 1932 10

Country.
Holland_..
Hungary__
India
Ireland_
Italy
Japan
Lithuania
Norway_ _ _
Poland.—
Portugal—
Rumania..
Spain
Sweden
Switzerland

Rate in
Effect
Date
Jan.20 Established.
234 Apr. 18 1932
414 Oct 17 1932
4
July 7 1932
3
June 30 1932
Jan 9 1933
4
4.38 Aug. 18 1932
May 5 1932
7
Sept. 1 1932
4
Oct. 20 1932
6
654 Apr. 4 1932
7
Mar. 3 1932
Oct. 22 1932
6
334 Sept. 1 1932
Jan. 22 1931
2

Previows
Rate.
3
5
5
334
5
5.11
754
434
734
7
8
634
4

234

Jan. 21 1933

last year the ratio was 35.42%. Loans on Government securities decreased £13,415,000 and those
on other securities £72,019. The latter consists of
discounts and advances which fell off £1,083,560
and securities which increased £1,011,541. The rate
of discount remains unchanged at 2%. Below we
furnish a comparison of the different items for five
years.
BANK OF ENGLAND'S COMPARATIVE STATEMENT.
' 1933.
1932.
1931.
1930.
1929.
Jan. 18.
Jan. 20.
Jan. 21.
Jan. 22.
Jan. 23.
£
£
£
£
£
Circulation
a354,664,000 347,878,781 346,461,899 346,399,540 355,366,406
Public deposits
12,116,000 20,813,259 22,323,852 29,151,416 16,850,494
Other deposits
137,885,403 115,925,709 102,197,129 95,960,328 98,323,558
Bankers' accounte105,380,987 77,481,720 68,812,580 59,948,356 60,841,865
Other accounts_ 32,504,416 38,443,989 33,384,549 36,011.972 37,481,693
Government secure_ 96,552,824 52,430,906 49,246,247 57,665,855 49,486,855
Other securities._ 30,623,352 53,951,564 36,953,788 20,668,442 25,824,593
Disct. & advances 11,819,357 14,031,271 10,994,845 5,779.566 10,763,570
Securities
18,803,995 89,920,293 25,958,943 14,878,876 15,061.023
Reserve notes Jt coin 40,906,000 48.442,390 56,399,867 64,889,435 57,976,556
Coin and bullion_120,570,654 121,321,171 142,861,766 151,288,975 153,342,962
Proportion of reserve
27.27%
35.42%
to liabilities
45.29%
51.86%
50%
Bank rate
2%
6%
3%
5%
4.I4%
a On Nov.29 1928 the fiduciary currency was amalgamated wibt Bank of England
note Issues, adding at that time £234,199,000 to the amount of Bank of England
notes outstanding.

HE Bank of France statement for the week ended
Jan. 13 shows a decrease in gold holdings of
355,344,728 francs. The total of gold is now 82,404,571,779 francs which compares with 69,846,822,715
francs a year ago and 54,402,709,513 francs two
years ago. Increases appear in credit balances abroad
of 3,000,000 francs, in French commercial bills discounted of 68,000,000 francs and in creditor current
accounts of 140,000,000 francs. Notes in circulation
reveal a loss of 815,000,000 francs, reducing the total
of notes outstanding to 83,591,538,980 francs. Total
circulation a year ago was 84,008,409,105 francs and
the year before 76,992,418,285 francs. Bills bought
abroad and advances against securities record decreases of 2,000,000 francs and 12,000,000 francs
respectively. The proportion of gold on hand to sight
liabilities at 78.01% compares with 62.28% last year
and 53.92% the previous year. Below we furnish a
comparison of the various items for three years:

T

BANK OF FRANCE'S COMPARATIVE STATEMENT.
Changes.
Status as of
Jan. 13 1933. Jan. 15 1932, Jan. 16 1931.
for Week.
Francs.
Francs.
Francs.
Francs.
Gold holdings....Dec. 355,344,728 82,404,571,779 69,846,822,715 54,402,709,513
Credit bale. abed-Inc. 3,000,000 2,945,312,967 10,405,672,098 7,032,726,544
French commercial
bills disoountedaInc. 68,000,000 2,642.666,286 5,528,075,094 7,381,290,012
Bilisbought abedbDec. 2,000,000 1,522,224,240 10,101,418.635
19,330,196,018
Adv. eget. scours-Dec. 12,000,000 2,601,490,853 2,866,732,106
2,986,780,738
Note clrculation__Dec.815,000,000 83,591,538,980 84,008,409.105
76,992,418,285
Cred.cum accts__Inc. 140,000,000 22,045,980,571 28,133,458,608
23,909,560,767
Proportion of gold
on hand to sight
Inc.
liabilities
0.16%
78.01%
62.28%
53.92%
a Includes bills purchased In France. b Includes bills
discounted abroad.

In London open market discounts for short bills
on Friday were %@13-16%, as against 13-16@y%
HE Reichsbank's statement for the second quarter
on Friday of last week, and 13-16@%% for three
of January shows a decrease in gold and bullion
months' bills, as against 15-16@1% on Friday of last of 4,105,000 marks. The total of bullion is now
week. Money on call in London on Friday was 3/2%. 801,137,000 marks, which compares with 966,241,000
At Paris the open market rate remains at 1%, and marks last year and 2,215,828,000 marks the previous
in Switzerland at 13/2%.
year. Reserve in foreign currency, silver and other
coin, notes on other German banks, investments and
HE Bank of England statement for the week other daily maturing obligations register increases of
ended Jan. 18 shows a gain of £26,549 in gold 4,608,000 marks,41,817,000 marks, 3,406,000 marks,
holdings and as this was attended by a contraction 671,000 marks and 14,928,000 marks respectively.
of £4,019,000 in circulation, reserves rose £4,046,000. Notes in circulation show a contraction of 103,146,000
The Bank now holds £120,570,654 of gold compared marks, bringing the total of the item down to 3,270,with £121,321,171 a year ago. Public deposits fell 835,000 marks. The total of circulation last year
off £672,000 and other deposits £8,778,824. Of the stood at 4,381,554,000 marks and the previous year
latter amount, £7,539,520 was from bankers' accounts at 3,962,289,000 marks. A decrease appears in bills
and £1,239,304 from other accounts. The reserve of exchange and checks of 128,784,000 marks, in
ratio is up to 27.27% from 23.11% last week and advances of 571,000 marks, in other assets of 15,18.22% two weeks ago. In the corresponding week 888,000 marks and in other liabilities of 10,682,000

T

T




Volume 136

Financial Chronicle

marks. The proportion of gold and foreign currency
to note circulation at 28.2% compares with 25.6% a
year ago and 62.7% two years ago. Below we furnish
a comparison of the various items for three years:
REICHSBANK'S COMPARATIVE STATEMENT.
Changes
for Week.
Jan. 14 1933. Jan. 15 1932. Jan. 15 1931
Assets—
Reichsmarks.
Reichsmarks. Reichsmarks. Reichsmarks.
Gold and bullion
Dec. 4,105,000 801,137,000 966,241,000 2,215,828,000
Ot which depos.abed_
No change
43.577.000
93,912,000 222,445,000
Res've in torn eurr_
4.608,000 119.733,000 154.843,000 268,085,000
Bills of exch. dc cheeks.Dee. 128.784,000 2,406,238,000 3,610.979,000 1,678,737,000
Silver and other coin_ _ Inc. 41,817,000 154,661,000 177.529,000 189,723,000
Notes on oth.Ger.bks_ Inc. 3,406,000
11,656.000
8,082,000
18,034,000
Advances
Dec.
571,000
71,379,000 108,486,000 114,948,000
Investments
Inc.
671,000 398,188,000 160,645,000 102,519,000
Other assets
Dec. 15,888,000 857,012,000 937,904,000 514,303,000
LIaSUUICS—
Notes in circulation_ _Dee. 103,146.000 3,270,835,000 4,381,554,000 3,962,289.000
0th.daily matur.oblig.Inc. 14,928,000 353,423,000 384.316,000 322,757,000
Other liabilities
Dec. 10,682,000 756,870,000 871,508,000 323,204,00n
Propor. of gold & tor%
Cum.to note circurnIno.
0.9%
28.2%
25.6%
62.7%

371

class paper occasional transactions at 13'1% are
noted.
HE market for prime bankers' acceptances shows
little change this week. The demand is excellent but there is little paper available. The quotations of the American Acceptance Council for bills
up to and including three months are M% bid, %%
asked; for four months, %% bid and M% asked; for
five and six months,'N% bid and 4
3 % asked. The
bill buying rate of the New York Reserve Bank is 1%
for 1 to 90 days; 13/s% for 91 to 120 days, and 13/2%
for maturities from 121 to 180 days. The Federal
Reserve banks show a small decrease in their holdings
of acceptances, the total having moved down from
$32,362,000 last week to $31,926,000 this week. Their
holdings of acceptances for foreign correspondents,
however, increased during the week from $39,932,000
to $40,724,000. Open market rates for acceptances
were lowered on Friday morning A of 1% by three
local dealers, bringing the rates down to record lows.
This act was due to the announcement of the Clearing House Committee of its new schedule for interest
rates on deposits. The reduction of the rates was
not met by the remainder of the dealers, so the bill
market, temporarily and officially was unchanged.
Large dealers explained that they would decide their
course of action shortly, and that they might be influenced considerably by the announcement of the
Treasury financing for February. Open market rates
for acceptances are as follows:

T

HE extraordinary ease prevalent in the New York
money market received further emphasis yesterday in sweeping reductions of rates paid on deposits
by the Clearing House banks of the city. The Clearing House Committee made known yesterday that
interest rates paid will be cut in half beginning Jan.
25. On demand deposits of banks and bankers the
new rate will be 3 17
0, as against %% previously.
On demand deposits of mutual savings banks in
commercial banks interest of %% will be paid,
against 1% formerly. Interest on all other demand
deposits will be 317
0,against
while time deposits
will receive %%,against 1%. It is expected that the
independent committee of bankers which governs
rates paid on foreign central bank and government
SPOT DELIVERY.
—180 Days--- —150 Days— —120 Days
deposits here will take similar action soon. Tentative
811.
Asked.
Bid.
Asked.
Bid.
Asked.
reductions in bankers' bill rates were made by several Prime eligible bills
—90Days— —60Days— —30Days
dealers after the Clearing House Committee an818.
Asked.
Bid.
Asked.
Bid.
Asked.
nounced its action, but most dealers maintained Prime eligible bills
Si
34
Si
Si
Si
94
DELIVERY WITHIN THIRTY DAYS.
previous rates and the official quotations were Eligible member FOR
banks
abl
Eligible non-member banks
unchanged.
34% bid
Call loans on the New York Stock Exchange were
HERE have been no changes this week in the
again 1% for all transactions of the week, whether
rediscount rates of the Federal Reserve banks.
renewals or new loans. In the unofficial outside
-The
followin
g is the schedule of rates now in effect
market demand loans were reported arranged at 4
3 % for the various classes of paper at the different
Monday and Tuesday, and at M% in all subsequent
sessions. The tone in time loans was soft. A Reserve banks:
DISCOUNT RATES OF FEDERAL RESERVE BANKS ON ALL CLASSES
Treasury discount bill issue of $75,000,000, due in
AND MATURITIES OF ELIGIBLE PAPER.
91-days, was awarded Monday at an average rate
Rale in
Federal Reserve Bank.
Effect on
of 0.24%, as against 0.20% on a similar issue sold a
Date
Preview
Jan. 20.
Established.
Rate.
week earlier. The very slight increase is due to the Boston394
Oct. 17 1931
231
New
York
June 24 1932
234
modest current reductions in United States Govern- Philadelphia
3
394
Oct. 22 1931
8
Cleveland
Oct. 24 1931
394
ment security holdings of the Federal Reserve banks. Richmond
3
394
Jan. 25 1932
4
Atlanta
Nov. 14 1931
334
Brokers loans against stock and bond collateral, Chicago
3
234
June 25 1932
834
Louis
334
Oct. 22 1931
294
reported for the week to Wednesday night by the St.
Minneapolis
314
Sept. 12 1930
4
Kansas City
334
Oct. 23 1931
3
Federal Reserve Bank of New York, declined Dallas
314
Jan.
28
1932
4
San Francisco
Oct. 21 1931
334
214
$14,000,000. Gold movements in the same period
resulted in a net gain of $16,632,000 in United States
TERLING exchange continues firm following
stocks of the metal.
the trend which developed with the turn of the
year. The range this week has been between 3.34%
EALING in detail with call loan rates on the and 3.35%
for bankers' sight bills, compared with a
Stock Exchange from day to day, 1% was the range of from
3.343, to 3.353/ last week. The range
riding quotation all through the week both for new for cable
transfers has been between 3.343
/
1 and 3.36,
loans and renewals. The time money market con- compared
with a range of from 3.34Yi. to 3.35% a
tinues unchanged, there is practically no demand for week ago.
The foreign exchange market in New
this class of accommodation at the present time. York is extremel
y quiet, but the major demand for
Rates are quoted nominally at M% for 30 to 90 days, sterling
comes
from
other centers. The most imA@y
i% for four months and 34@1% for five and
portant factor .bearing on sterlirg at present is the
six months. There has been no change in the market lifting by the British
Treasury of the ban on new
for commercial paper this week. The demand is capital issues in order
to allow industry and trade
good but paper is scarce. Quotations for choice the benefit of
cheap money. The removal of restricnames of four to six months' maturity are 13/
4®13/2%. tions was announced in London
on Saturday last.
Names less well known are 2%. On some very high- The market
has been expecting such action for some

T

T

S

D




372

Financial Chronicle

months and a number of important loans were
made in London during that time with at least
approval of the British Treasury. The restrictions
on foreign issues continue. The restrictions on
domestic issues were originally imposed so as to
enable the Treasury to carry out its several conversion operations. The ban on foreign issues occurred
when Great Britain abandoned the gold standard in
1931. It seems probable that more liberality will be
allowed the London market on foreign capital issues
before long. According to London dispatches the financiers there are in accord that there should be no
attempt to return to the gold standard until the international debt problems have become further clarified.
The point is made in London that if England were to
return to gold after an inadequate settlement of the
intergovernmental war indebtedness or with imperfect preparation for safeguarding the gold standard, it is reasonably certain that sterling would be
unable to withstand the pressure it would then be
called upon to bear.
F. C. Goodenough, Chairman of Barclays Bank,
in his annual report to the shareholders on Thursday,
declared in commenting on the war debt owed to the
United States that payment of further sums in gold
may be dismissed as impracticable. This is true,
he said, because if England handed over to America
the £120,000,000 in gold now held as backing for the
English currency, such action would defer, possibly
forever, a return to the gold standard not only in
England but in those countries whose currencies
are linked to sterling. The market not only here
but in all foreign centers is inclined to be extremely
bullish on sterling, and it is generally believed that
if it were not for counter operations of the exchange
equalization account the rates would be much higher
at this time, as all seasonal factors favor the pound
and will be increasingly so as the year advances until
toward the end of August. The Bank of England
statement for the week ended Jan. 18 shows a
material improvement. Gold holdings are up L26,549 to £120,570,654, as compared with £121,321,171
a year ago. The Bank's ratio has moved up to
27.27%, compared with 23.11% on Jan. 11, and
with 18.22% a week earlier. A year ago the ratio
stood at 35.4%. The improvement in the ratio is
due largely to the return of money from circulation,
a seasonal phenomenon which is characteristic of
the period following the Christmas and New Year
holidays. The ratio would be still further improved
except for the fact that deposits are much larger
than usual. This position has been brought about
partly by operations of the Treasury in connection
with the Exchange Equalization Fund, which have
been conducted on a fairly large scale of late. These
transactions result in temporary increases of outstanding credits because transactions for the fund
have led to large buying of francs and dollars, but
heavy selling of sterling which automatically increases home deposit balances.
On Thursday the Reserve Bank reported a "loss
through increase in gold held abroad for Federal
Reserve Bank of New York" of $25,101,200. No
information throwing light on this transaction was
forthcoming from official quarters but bankers are
convinced that the item means that the British
Treasury or the Bank of England has brought back
from the Reserve Bank this amount of gold, a part
London on Dec. 15
of the $95,550,000 acquired in
debt instalment.
war
the
of
payment
as a result of the




Jan. 21 1933

The British authorities must have paid for this gold
purchase by dollar balances recently acquired here.
The Reserve Bank still has $51,091,000 of gold earmarked in London. It seems quite probable that
the British authorities may buy back all or part
of this.
At the Port of New York the gold movement for
the week ended Jan. 18, as reported by the Federal
Reserve Bank of New York, consisted of imports of
$19,631,000, of which $9,422,000 came from France,
$3,937,000 from India, $3,227,000 from Holland,
$1,994,000 from Canada, $999,000 from England,
and $52,000 chiefly from Latin-American countries.
There were.no gold exports. The Reserve Bank
reported an increase of $7,931,000 in gold earmarked
for foreign account. In tabular form the gold movement at the Port of New York for the week ended
Jan. 18, as reported by the Federal Reserve Bank of
New York, was as follows:
GOLD MOVEMENT AT NEW YORK,JAN. 12-JAN. 18, INCLUSIVE.
Exports.
Imports.
$9.422,000 from Prance
3,937,000 from India
3,227.000 from Holland
None
1.994.000 from Canada
999,000 from England
52,000 chiefly from LatinAmerican countries
$19,631,000 total
Net Change in Gold Earmarked for Foreign Account.
Increase: $7,931.000

The above figures are for the week ended Wednesday evening. On Thursday $6,527,000 of gold was
received from England. There were no exports of
the metal, but gold held earmarked for foreign account decreased $100,000. The Federal Reserve
Bank also reported on Thursday a loss through decrease in gold held abroad for their account of
$25,101,200. Yesterday $2,937,300 of gold was
received from France. There were no exports of the
metal or change in gold held earmarked for foreign
account. For the week ended Wednesday evening
approximately $4,932,000 of gold was received at
San Francisco, $3,724,000 coming from Japan,
$681,000 from Australia and $527,000 from China.
Yesterday $1,321,000 more of gold was received at
San Francisco from China.
Canadian exchange continues at a severe discount.
On Saturday last Canadian funds were at a discount
8%,on Tuesday at
of 1113-16%, on Monday at 123/
2%, on Wednesday at 13%, on Thursday at
123/
2%.
13 1-16%, and on Friday at 123/
Referring to day-to-day rates, sterling exchange on
Saturday last was steady in a quiet market. Bankers'
sight was 3.35%@3.353/
2; cable transfers 3.3532@
3.35%. On Monday sterling was strong. The
range was 3.353/2@3.35% for bankers' sight and
3.35%@3.36 for cable transfers. On Tuesday sterling was easier. Bankers' sight was 3.35@3.3532;
cable transfers 3.353'@)3.35 11-16. On Wednesday
the pound displayed further ease. Bankers' sight
was 3.349'@3.343'; cable transfers 3.349@3.35.
On Thursday sterling was quiet and steady. The
range was 3.34%
3 @3.34% for bankers' sight and
3.34%@3.35 for cable transfers. On Friday sterling
was strong. The range was 3.353/@3.35% for
bankers' sight and 3.35 3-16@3.35% for cable
5
transfers. Closing quotations on Friday were 3.35%
for demand and 3.35 11-16 for cable transfers. Commercial sight bills finished at 3.35%; 60-day bills at
8 documents for payment
3.34%;90-day bills at 3.34/s;
(60 days) at 3.34%, and seven-day grain bills at
3.353/s. Cotton and grain for payment closed at
3.35%.

Volume 136

Financial Chronicle

XCHANGE on the Continental countries shows
no new developments of importance. French
francs continue to display an undertone of ease,
though ruling slightly above the gold point from Paris
to New York. This point was considered as 3.901
4
until a week or so ago, when it was lowered to 3.9038.
Because of British purchases of francs tluring the past
week or more the rate has been prevented from moving
to this newer gold point. The recent shipments of
gold in bars from France to New York were found not
to have satisfied the requirements of the United
States Assay Office. The French gold movement to
this side has been suspended temporarily but the
market believes that it will be resumed before long,
as bankers here state thatfor the lasttwo monthsthere
has been a steady movement of French capital away
from France which has been more or less concealed
at times by other cross movements in the exchange
market. Paris has been reported as an active buyer,
especially of sterling and guilders, against francs.
Advices from Paris and Amsterdam indicate that
there is a misunderstanding on the Continent regarding the reasons for the lowering of the gold point from
Paris to New York. The Paris market especially is
laboring under a mistaken impression that the Federal
Reserve Bank has altered its regulations regarding
the fineness and shape of gold bars which it will
receive. The Reserve Bank has been subjected to
considerable unwarranted criticism, but European
markets were soon set right in this matter. In commenting on this misunderstanding the Wall Street
Journal said:
"The Federal Reserve does not enter into the
picture at all, nor was there any change in the regulations of the Assay Office. Local banks say that
on a number of occasions the Continent has given
the impression that it believes the gold which is
brought in from abroad is sold directly to the Federal
Reserve. This is not the case; the metal is delivered
directly to the Assay Office and payment made from
that quarter.
"All bars received here from abroad are melted
down unless it is evident that the bar is in perfect
condition and the history of the bar since it left this
country is known. Bars recently received from
Paris had been reassayed in France and a sightly
different stamp of fineness placed on them because
of a different method of assay. According to
American regulations these were mutilated bars and
had to be melted again. The loss occurred because
of the presence of alloy when the calculations for the
gold point evidently had been made on the basis of
fine bars."
Regarding the flight of capital from France a committee of experts appointed by the Finance Minister,
Henri Cheron, has just made a report preliminary
to the drafting of budget proposals, which declares
that despite the heavy gold cover for the sight
liabilities of the Bank of France the stability of the
currency can be assured absolutely only by sound
public finances, and declares further that the present
weakness of the franc in the foreign exchange market
and the export of gold to New York should be taken
as a warning both that the balance of payments is
against France and that withdrawal of foreign capital
has begun. The report denies that the volume of
foreign capital in France is so great that such withdrawal alone would endanger the franc, but it argues
that the possibility of an ultimate flight of domestic
capital to foreign centers cannot be ignored, despite

E




373

the uncertainty of the situation abroad. This week
the Bank of France shows a further decrease in gold
holdings of 355,344,728 francs, the total standing
at 82,404,571,779 francs as of Jan. 13, in comparison with 69,846,822,715 francs a year ago and
with 28,935,000,000 francs in June 1928 following
stabilization of the unit.
German marks are steady and quotations are of
course largely nominal as foreign exchange operations
are under the strict control of the Reichsbank. The
Reichsbank statement of Jan. 16 shows notable
improvement. The Reichsbank continues to hold
German note circulation down. On Jan. 14 circulation stood at 3,270,835,000 marks, the lowest level
in several years, while at the same time bills of
exchange and checks showed an important decline
to 2,406,238,000 marks. This figure is the lowest
reported since June 15 1931 when the great credit
crisis in Germany was just getting under way.
When the crisis came it was necessary to use the
Reichsbank's credit rather liberally in order to uphold
the banking and credit structure. Then the item of
other bills of exchange and checks jumped from
1,430,498,000 marks on May 23 1931 to 3,579,196,000
marks by Aug. 7 1931. The high of 4,241,914,000
marks was reached on Dec. 31 1931. From that time
on there has been a gradual reduction in the Reichsbank credit outstanding as various difficulties were
cleared up. The Reichsbank's ratio on Jan. 16 welt
to 28.2%. A year ago it was at 25.6%. The German
authorities are determined to prevent note inflation.
The London check rate on Paris closed at 86.04
on Friday of this week, against 85.86 on Friday of
last week. In New York sight bills on the French
center finished on Friday at 3.90, against 3.903/ on
Friday of last week; cable transfers at 3.903,
against 3.903, and commercial sight bills at 3.90,
against 3.90. Antwerp belgas finished at 13.86
for bankers' sight bills and at 13.86 for cable
transfers, against 13.85 and 13.853/2. Final quotations for Berlih marks were 23.783/ for bankers'
sight bills and 23.79 for cable transfers, in comparison
with 23.743/
2 and 23.75. Italian lire closed at 5.113/
2
for bankers' sight bills and at 5.113
4 for cable transfers, against 5.113
4 and 5.12. Austrian schillings
closed at 14.103/2, against 14.103/2; exchange on
Czechoslovakia at 2.96%, against 2.963
/
s; on Bucharest at 0.6031, against 0.603; on Poland at 11.24
against 11.243/
2;on Finland at 1.483/2, against 1.473/2.
Greek exchange closed at 0.543/ for bankers' sight
bills and at 0.543
4 for cable transfers, against 0.5*i
and 0.523
4.
XCHANGE on the countries neutral during the
war presents a variety of trends. Danish and
Norwegian currencies have been easier since Friday of
last week as a result of Denmark's lifting of exchange
restrictions. Denmark has been an important member of the so-called "sterling group" and since the
abandonment of gold in 1931 the krone has been held
firm to sterling. The abandonment of the sterling
anchorage, it is believed, was forced on government
by the agricultural classes with the expectation that
the move would improve Denmark's competitive
position abroad. The Norwegian krone is inclined
to move in sympathy with the Danish unit. The
market thinks it pOssible that Norway and Sweden
may follow the example of Denmark as these three
countries are always strongly inclined to work in
unison on all fiscal and trade matters. Holland

E

374

Financial Chronicle

guilders and Swiss francs are higher, notwithstanding
an outward movement of funds to other countries for
more profitable employment. Dutch interests are
becoming increasingly important in the New York
security market and Dutch funds are also moving to
London. This, of course, has an adverse effect on
guilder exchange. Spanish pesetas are steady. The
unit is held closely to the French franc by operations
of the Bank of Spain.
Bankers' sight on Amsterdam finished on Friday
at 401.17, against 40.14 on Friday of last week;
cable transfers at 40.17
against 40.15, and commercial sight bills at 40.13, against 40.11. Swiss
francs closed at 19.283 for checks and at 19.28
4 and 19.25.
for cable transfers, against 19.243
Copenhagen checks finished at 16.863' and cable
transfers at 16.87, against 16.953/i and 16.96.
Checks on Sweden closed at 18.333/ and cable transfers at 18.34, against 18.273/ and 18.28; while checks
on Norway finished at 17.243/
2 and cable transfers
at 17.25, against 17.27 and 17.28. Spanish pesetas
closed at 8.173/ for bankers' sight bills and at 8.18
for cable transfers, against 8.173/ and 8.18.

Ian. 21 1933

joint efforts of the people and the Government are
beginning to bear fruit."
Closing quotations for yen checks yesterday were
20%, against 20% on Friday of last week. Hong
Kong closed at 21%@22 1-16, against 21%@22;
Shanghai at 28®283j, against 27%@28. Manila
at 49%, against 49%; Singapore at 393/8, against
393/8; Bombay at 25.40, against 25.40, and Calcutta
at 25.40, against 25.40.
URSUANT to the requirements of Section 522
p
of the Tariff Act of 1922, the Federal Reserve
Bank is now certifying daily to the

Secretary of the
Treasury the buying rate for cable transfers in the
different countries of the world. We give below a
record for the week just passed:
FOREIGN EXCHANGE RATES CERTIFIED BY FEDERAL RESERVE
BANKS TO TREASURY UNDER TARIFF ACT OF 1922.
JAN. 14 1933 TO JAN. 20 1933, INCLUSIVE.
Noon Buono Rate for Cab e Transfers in New York,
Value 8n United Stales Money.

Country and Monetary
Unit

Jan. 14. Jan. 16. Jan. 17. Jan. 18. Jan. 19. Jan. 20.
8
EUROPE139630
Austria,sniffing
138484
Belgium, belga
007200
Bulgaria, lev
Czechoslovakia, kron 029615
168146
Denmark, krone
England, pound
3.354541
sterling
.014541
Finland, markka
.039017
France,franc
Germany, relohsmark .237442
Greece, drachma
.005316
.401439
Holland, guilder
.174250
Hungary, pengo_
.051194
Italy. lira
.171600
Norway. krone.,
.111850
Poland. zloty
.030320
Portugal, escudo
.005972
Rumania, leu
.081700
Spain, peseta
.182692
Sweden, krona
Switzerland.franc__ .192450
Yugoslavia. dinar__ __ .013550
ASIAChina.287708
Chedoo tael
.284791
Hankow tael
.277968
Shanghai tael
.294791
Tientsin tael
Hong Kong dollar_ .216875
.197812
Mexican dollar..
Tientsin or Pelyang
.197916
dollar
.197500
Yuan dollar
.253850
India, rupee
repair, yen
.206750
.389375
3ingapore (81.S.)do
NORTH A MER.880885
Danada, dollar
.999331
:tuba, peso
Weide°. Peso (silver). .304000
.878375
Vewfoundland, doll
SOUTH AMER.krgentina, peso (gold) .585835
3razil, milreis
.076300
rihIle, peso
.060250
.473333
Iruguay, peso.
.952400
)olombla. IMO

$
.139900
.138507
.007200
.029611
.167208

8
.139690
.138553
.007200
.029616
.166996

$
.139650
.138561
.007200
.029618
.167000

$
.139687
.138519
.007200
.029614
.167946

8
.139750
.138553
.007200
.029618
.168769

3.357958 3.350083 3.347208 3.347208 3.353708
XCHANGE on the South American countries
.014525 .014525 .014575 .014575 .014575
.039038 .039044 .039031 .039020 .039015
continues to be only nominally quoted as all
.237517 .237603 .237582 .237625 .237714
.005288 .005321 .005342 .005389 .005471
these nations have imposed exchange control re.401526 .401660 .401657 .401667 .401714
.174250 .174250 .174250 .174250 .174250
trade
reports
from
all
strictions. Nevertheless,
the
.051192 .051183 .051175 .051179 .051175
.171846 .171830 .171592 .171730 .172060
leading South American centers indicate an expand.111850 .111950 .111850 .112100 .111850
.030340 .030340 .030305 .030340 .030290
.005972 .005972 .005975 .005966 .005972
ing export business, with greatly reduced imports.
.081719 .081707 .081739 .081717 .081728
.182741 .182607 .182507 .182603 .182953
Argentina has sent a special envoy to Great Britain,
.192489 .192548 .192542 .192514 .192721
.013502 .013562 .013562 .013560 .013537
ostensibly on a courtesy mission, to return the recent
visit of the Prince of Wales, but in reality, it is
.289791 .288125 .288333 .289168 .289583
.286875 .285208 .285416 .286250 .286666
believed, to make a trade agreement to offset some
.279531 .278281 .278750 .279062 .279375
.296875 .295208 .295833 .295833 .293333
of the measures recently adopted by the British
.217500 .216406 .216875 .216875 .217656
.198437 .198125 .197187 .197187 .198437
Empire economic conference at Ottawa. As soon as
.199166 .198750 .197500 .197500 .198750
British
Government
removes
the
restriction
on
the
.198333 .197916 .196666 .196666 .197916
.253900 .253760 .253045 .252700 .253075
foreign lending by the London market it is believed
.206325 .206175 .206005 .206900 .207475
.389375 .389375 .388125 .388125 .388750
that there will be a considerable expansion in busi.882135 .873906 .869895 .869531 .872760
ness in most of the South American countries, with
.999393 .999393 .999393 .999393 .999381
.301350 .301333 .299000 .296000 .296000
Argentina the chief beneficiary.
.879375 .871500 .867500 .867375 .869875
Argentine paper pesos closed on Friday nominally
.585835 .585835 .585835 .585835 .585835
.076300 .076300 .076350 .076350 .076350
.060250 .060250 .0602f0 .060250 .060250
at 25% for bankers' sight bills, against 25% on
.473333 .473333 .473333 .473333 .473333
.952400 .952400 .952400 .052enn
Friday of last week; cable transfers at 25.80, against
25.80. Brazilian milreis are nominally quoted 7.45
HE following table indicates the amount of gold
for bankers' sight bills and 7.50 for cable transfers,
bullion in the principal European banks as of
against 7.45 and 7.50. Chilean exchange is nominally
1933, together with comparisons as of the
Jan.
19,
17.50,
nominal
at
s. Peru is
quoted 63/s, against 63/
dates in the four previous years.
corresponding
against 18.00.

E

Banks of-

XCHANGE on the Far Eastern countries is
without incident. The Chinese units are steady
and fractionally firmer owing to slightly better silver
prices. Silver was officially quoted in New York
at from 253 to 253/2e. a fine ounce, compared with
a range last week of from 25 to 253
%c. an ounce.
The all-time low was 2434c., touched on Dec. 28.
The Indian rupee, of course, fluctuates with the
swings in sterling, to which it is attached at the rate
of one shilling and six pence per rupee. Japanese
yen are relatively steady, ruling around the levels of
last week but nevertheless at close to the lowest
levels ever recorded for the unit. The Japanese
Finance Minister, recently referring to the international gold situation, is reported to have said:
"The Japanese people are waging an economic war,
with their labor as their chief weapon against America
and France, which are fighting with gold. This war
has been turning out favorably for Japan, and the

E




England__
Frances_ __
Germanyb_
Spain
Italy
Netherlands
Nat.Belg'm
Switzerland
Sweden__ _ _
Denmark...
Norway_ _ _

1933.
£
120,570,654
659,236.574
37.877,500
90,345,000
63,053,000
86,050,000
74,263.000
88,963.000
11,443,000
7,397,000
8,015,000

1932.
£
121,321,171
558,774,581
42,716,250
89,911,000
60,854,000
73,294,000
72,853,000
61,042,000
11,435,000
8,015,000
6,559,000

OS94110

1931.
£
142,861,766
435,301,676
99,529,000
97,297,000
57,297,000
35,510,000
39,222,000
25,757,000
13,377.000
9,558,000
8,134,000

1930.
£
151,288,975
341,895,396
108,899,450
102.641,000
56,120,000
37,288,000
32,750,000
23,221,000
13,582,000
9,578,000
8,146,000

1929.
£
153,342,962
271,867,745
133,182,600
102,366,000
64,638,000
36,212,000
25,553,000
19,286,000
13,103,000
10,112,000
8,159,000

Total week 1,247,213,728 1,106,775,002 964,147,342 883,209,821 827.822 707
Prey. week 1.250.299.287 1.102.828.061 963 213 MI5 nen 021 turn on., I0‘1,11.1,7
a These are the gold ho dings 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 £2,178,850.

The Question of the Sanctity of Treaties-Mr.
Roosevelt's Responsibility.
Mr. Roosevelt's brief statement on Tuesday that
while "any statement relating to any particular
foreign situation must, of course, come from the
Secretary of State of the United States," he was,
however, "wholly willing to make it clear that
American foreign policies must uphold the sanctity

Volume 136

Financial Chronicle

of international treaties," and that "that is the
cornerstone on which all relations between nations
must rest," has been hailed as a clear and unequivocal approval by the President-elect of the
foreign policies of the Hoover Administration in so
far, at least, as recognition of treaty obligations is
concerned. Mr. Roosevelt declined to amplify his
statement, and there is room for conjecture regarding the extent to which his implied endorsement extended to Administrative interpretations of existing treaties whose provisions or obligations may be
in controversy. The particular bearing of the statement has to do with the attitude of the United States
toward the Manchurian imbroglio, a controversy
which during the past few days has reached a gravely
critical stage. A review of the treaty stipulations
bearing upon that controversy, and of the official
interpretations to which the United States is committed, is worth while at the moment in order to
show exactly where the United States stands in the
matter.
The Nine-Power Treaty of Feb. 6 1922, one of the
agreements emanating from the Washington Disarmament Conference, binds the contracting parties
other than China,in its first Article,"(1) to respect
the sovereignty, the independence,and the territorial
and administrative integrity of China; (2) to provide the fullest and most unembarrassed opportunity
to China to develop and maintain for herself an
effective and stable government; (3) to use their
influence for the purpose of effectually establishing
and maintaining the principle of equal opportunity
for the commerce and industry of all nations throughout the territory of China; (4) to refrain from taking advantage of conditions in China in order to
seek special rights or privileges which would abridge
the rights of subjects or citizens of friendly States,
and from countenancing action inimical to the
security of such States." By Article II the contracting Powers further agreed "not to enter into any
treaty, agreement, arrangement or understanding,
either with one another or, individually or collectively, with any Power or Powers, which would infringe or impair the principles stated in Article
I," while by Article IV they also agreed "not to
support any agreements by their respective nationals
with each other designed to create spheres of influence or to provide for the enjoyment of mutually exclusive opportunities in designated parts of
Chinese territory." Article VII further provided
that "whenever a situation arises which in the
opinion of any one" of the contracting Powers "involves the application of the stipulations" of the
Treaty, "and renders desirable discussion of such
application, there shall be full and frank communication between the contracting Powers concerned."
The Treaty was signed at the time by the United
States, Belgium,China, Great Britain,France,Italy,
Japan, The Netherlands and Portugal, and was accepted later by Bolivia, Denmark, Mexico, Norway
and Sweden. Germany also signed later, but the
Treaty has not yet been ratified by the Reichstag.
On Aug. 27 1928, the Pact of Paris, by its second
Article, bound the contracting Powers in an agreement "that the settlement or solution of all disputes
or conflicts, of whatever nature or of whatever origin
they may be, which may arise among them, shall
never be sought except by pacific means."
On Jan. 7 1932, in identical notes to Japan and
China, Secretary Stimson notified those Govern-




375

ments that the American Government"cannot admit
the legality of any situation de facto, nor does it
intend to recognize any treaty or agreement entered
into between those Governments, or agents thereof,
which may impair the treaty rights of the United
States or its citizens in China,including those which
relate to the sovereignty, the independence, or the
territorial or administrative integrity of the Republic of China, or to the international policy relative to China commonly known as the open-door
policy; and that it does not intend to recognize any
situation, treaty or agreement which may be brought
about by means contrary to the covenants and obligations of the Pact of Paris of Aug. 27 1928, to which
treaty both China and Japan as well as the United
States are parties." Last Monday it was announced
that the position taken in the note of Jan. 7 1932,
had been reaffirmed, and that notice to that effect
had been given to foreign Governments and the
League of Nations through diplomatic channels. The
reaffirmation, it was explained, was due to reports
that the United States had modified its attitude, but
the announcement also coincided with the meeting of
the Committee of Nineteen of the League, to which
the Manchurian question had been referred. The
statement by Mr. Roosevelt which we have quoted
followed on Tuesday.
We have already expressed the opinion that the
Stimson doctrine, as it has come to be called, was
ill-timed. However consonant it may be with the
provisions of the Nine-Power Treaty and the Pact
of Paris, its promulgation at a time when the United
States was not actually called upon to act regarding
events in Manchuria was an uncalled-for announcement in advance of what the United States would or
would not do in the event of a future contingency.
The announcement might well have been withheld
until the question of recognizing the new State of
Manchukuo actually arose, but the Manchukuoan
declaration of independence was not issued until
Feb. 18 1932, six weeks after the Stimson notes, and
the State itself was not formally established until
March 1. By making known in advance its view of
the bearing of the two treaties mentioned upon the
Manchurian situation, the United States was put
in the position of seeming to interfere, and of aiding
the League to interfere, in a controversy which as
yet had not threatened any American interest in
China, and which was actually under investigation
at the time by the Lytton Commission appointed
only so recently as Dec. 10 1931. If it was Mr. Stimson's hope that a declaration of policy might recall
to Japan its obligations under the treaties, and induce it to engage in the full and frank discussion
which the Nine-Power Treaty calls for, the hope was
disappointed, for the publication of the notes was
immediately followed by an outburst of resentment
in Japan,and the doctrine itself has obviously tended
to stiffen Japenese determination to go ahead with
its occupation of Manchuria.
What has been done, however, will have to stand.
The United States cannot proclaim a policy in January 1931, and withdraw it in January 1932, on the
ground that it was premature. Mr. Hoover, in his
speech accepting a renomination on Aug. 11 1932,
made the Stimson doctrine his own, and Mr. Roosevelt can have no other course than to adhere to the
principle which his predecessor laid down. To shift
the balance to the other foot now would invite greater
perils than those that are obviously involved in main-

376

Financial Chronicle

taming the Stimson position. There can be no question, we think, that the principle of the Stimson
declaration is in harmony with the requirements of
the Nine-Power Treaty and the Pact of Paris, and
unless those treaties are to be allowed to go by the
board through the action of one of the signatories in
ignoring or violating them, the obligation of the
treaties must be upheld. There can be no other basis
of peaceful relations between nations than that of
strict observance of both the letter and the spirit of
international agreements until such time as they may
be changed by mutual consent. It may very well be
that the Nine-Power Treaty itself needs revision,
especially since the demonstrated failure of the Republic of China to develop and maintain the "effective
and stable government" which the Treaty obviously
expected, but the United States cannot be expected
to allow the Treaty to be overridden by unilateral
action of a single signatory. We have the Stimson
doctrine, and somehow or other we must go on with
it.
Precisely how the doctrine can be given practical
effect, however, without grave risk of intensifying
the international imbroglio,is another question. The
recent course of Japan has been anything but conciliatory. Its military operations in Manchuria,
actually penetrating south of the Great Wall while
mainly concerned with the occupation of Jehol
Province, seem to show a fixed determination to
carry out a comprehensive military occupation of the
whole of Manchuria and to make Manchukuo a
State in fact as well as in name. The only action by
the Committee of Nineteen which it seems disposed
to tolerate is such as will leave it free to negotiate
with China, although whether China, under the NinePower Treaty, could conclude a treaty which would
affect its own political or territorial integrity without the consent of the other signatories is not clear.
Japan was reported on Thursday to have withdrawn
its objection to the participation of Russia and the
United States in efforts for conciliation (the objection being based on the fact that those two countries
are not members of the League), but only on condition that the League drop its opposition to the recognition of Manchukuo. In the present temper of
Japan, there seems no way of stopping its progress
save by war, which is not to be thought of, or by the
attempted imposition of economic sanctions which
would be interpreted as a hostile act, and which in
any case would almost certainly lead Japan to withdraw from the League and resume entire liberty, of
action.
The situation of the United States is most unfortunate. Its action in taking the lead in calling
Japan to book has, of course, been warmly acclaimed
by the League, and the obligation of the Nine-Power
Treaty, it was revealed for the first time on Thursday, has been worked into the previously unpublished
report of the Committee of Nineteen; but with the
League apparently unable to make headway even
with the open support of the United States, the
United States finds itself in the awkward position of
attempting informally to bolster a League whose
efforts thus far have been impotent. There has long
been suspicion, moreover, that France was at heart
far more friendly to Japan than to China, and Great
Britain, with its large financial and commercial
interests in the Far East, has apparently assumed
the role of an interested but inactive spectator. To
add to the difficulty, Congress has just thrown the




Jan. 21 1933

whole future of international relations in the Pacific
into confusion by passing, over iMr. Hoover's very
able veto, the bill giving independence to the Philippines. The sanctity of treaties, in short, seems due
for a severe test. About the only hope at the moment
for a solution that will maintain at least the forms
of international friendliness is that Japan, finding
its career of conquest too much for its resources, may
stay its hand, and that direct negotiations between
Japan and China may bring an amicable agreement
to which the sanctity of treaties will not be fundamentally opposed.

Vanishing Farm Profits.
One of the most vital questions confronting the
country to-day is how to increase the buying power
of the total population so that the country in general
may secure a continuously expanding market for
its products.
If any occupational division of the population,
specifically agriculture, as a whole, is deficient in
buying power for any reason whatsoever, industry
cannot be indifferent to that fact. The farmer buys
only when he can sell, and it is therefore a matter of
general concern that he shall be able to sell his
products promptly at a fair price. However, if the
price that he gets for his product is low, while the
prices of the goods he buys are high, he is forced to
contract his purchases. This naturally affects the
general situation and prevents an active resumption
of business, which in turn reacts upon the farmer
himself, for his products cannot be marketed in a
time of depression.
The big problem of the American farmer,therefore,
is one of getting more money for his products, as
compared with industry in general. Until that is
accomplished, there can be no permanent settlement
of the agricultural question. The stubborn resistance to further price declines displayed on several
recent occasions by wheat and livestock, especially
hogs, helped some, but low prices are still a staggering blow to the farmer's income. Wheat on the farm
is now quoted at 32.8c. a bushel, or 55c. below the
low at the beginning of the World War. It is 18c.
lower than last year's price. Corn is 17.2c. a bushel
lower than last year; potatoes 11c. lower, while cotton is 0.2c. a pound lower. The present price of eggs
per dozen is about the same as that of last year, 26c.,
butter is 9.5c. a pound less, and wool is now selling
for about 3.7c. a pound below last year's price.
Therefore, the farmer who is now compelled to
sell his cotton at five and nine-tenths cents a pound
and goes to make purchases naturally makes comparisons such as these: For the price of an ordinary
suit of clothes costing $20 he must sell nearly 340
pounds of cotton. Or, putting it on another basis,
it takes more than four pounds of cotton to buy a
round of coca-colas or ice cream cone: for a family
consisting of five persons. The wheat farmer would
have to sell about five bushels of wheat before he
could buy enough standard grade gasoline, with the
tax added, to make a hundred-mile trip in an automobile.
When the farmer gets to town and desires to indulge in a movie, it takes two bushels of corn to
defray this inexpensive diversion. If he smokes nickel
cigars and wishes to lay in a supply of five it takes
the proceeds of over two a a half pounds of wool.
Going a little further, if he should care to buy for
himself or his wife a five dollar pair of shoes, it

Volume 136

Financial Chronicle

would take about 148 pounds of hog flesh. If he
should wish to pay for the shoes with beef cattle it
would take the proceeds from the sale of 135 pounds.
Similar comparisons can be made relative to the
purchasing power of other farm products. A dollar
shirt can now be purchased with the money received
from the sale of approximately four dozen eggs;
while in order to purchase a dollar bargain hat for
his wife the farmer would be compelled to take the
proceeds from the sale of nearly three bushels of
potatoes.
Startling as these comparisons seem, they do not
present a true picture of the seriousness of the
farmer's dilemma. The real situation is that when
the farmer is compelled to sell his commodities at
such ridiculously low prices he has nothing with
which to buy other necessities, for the simple reason
that it has cost him more to produce the commodity
than he gets for it.
These comparisons, however, aid greatly in clarifying the situation when one takes the five-year
period,1910-14, as the standard and places the valuations of that period at 100, and then sees that the
purchasing power of all farm products is approximately 51% of what it was previous to the war. This
figure is 20% below what it was in 1931, when it
reached the lowest point during the last three decades. This comparison is sometimes generalized by
the statement that the farmer's dollar is now worth
51c. During the year 1917 it was as high as $1.18,
declining thereafter each year to 1921. From 1921
to 1925 there was a gradual decrease to 92%; however, the latest figures show it at 51%. In other
words, the ratio of prices received for his goods to the
cost of operation is 51%, or a loss of 49% when compared with the 1913 average. If 49% is taken out
of the profits of any business in America to-day, that
business cannot stay out of bankruptcy very long.
During the years 1917, 1918 and 1919 agricultural
commodities exceeded the price level of other commodities; however, since then conditions have been
decidedly reversed. The latest report of the National
Bureau of Economic Research estimates that only
9.3% of the national income of all individuals was
drawn by persons following agriculture as a livelihood. This situation constitutes the farm problem
in one brief paragraph.
The final count of all bales, bushels, barrels, crates
and tons harvested by the farmers during 1932 indicates the gross value of agriculture last year not to
exceed $5,240,000,000. This amount is almost a billion dollars less than that reported for 1909, and is
$2,700,000,000 lower than the figure reached in the
worst year of the 1921-22 depression.
During the present year it is probable that the
farmers as a whole will be relatively better off than
the industrial and commercial population, because
their aggregate gross income available for expenditures will be considerably reduced; however, their
net will likely show a gain, through falling prices of
equipment and clothing and other items they buy.
Here is an instance where the fall in commodity
prices, which is looked upon with great anxiety by
the business world, is a real benefit to a large class
in the country, comprising about one-fifth of our
population.
The time has come when it is necessary for the
farmer to show resourcefulness in meeting changes
in world economic conditions. He needs to adopt
every economy of production. He needs to recognize




377

handicaps, natural and economic,that foredoom him
to failure.
At its last session Congress made several gestures
at relief legislation for the farmer, and the question
is now undergoing further consideration. Efforts
extended in the past may be termed merely as palliatives, which are necessary at the climax of a disease
and not a cure for the disease itself.
It looks as if the farmer has again been made the
victim of politics, and somehow it seems a miracle
that he is managing to get along in spite of the fact
that the agricultural dollar is reported as only worth
51% of what it was before the war.
Be Silent and Work.
Cezanne
said: "A painter should be
The great
silent. He should silence everything that might
interfere with his receiving perfectly the message
that comes to him from his subject, from his work."
For the word "painter"substitute business man,merchant, farmer, mechanic, physician, scientist, or any
occupation you like; the advice is still sound. The
depression from which we are now emerging was
originally due in no small measure to too eager attention to high-pressure clamor. Too many shoemakers
abandoned their lasts for the brilliant mirage of
Fortune in Cockaigne, reasoning with Ben Jonson,
"What should I do but cocker up my genius and live
free to all delights my fortune calls me to?" It is
the testimony of wisdom, it is the evidence of genius,
it is the experience of every man of common sense
that the one great recuperative, recreating delight
is the silent expansion of the soul and all the faculties in work. "Whatsoever thy hand findeth, do it
with thy might. . . . In the morning sow thy
seed, and in the evening withhold not thine hand."
There are many thousands of men in this country,
a few rich, more well-to-do, but most of them poor
enough in all conscience, who have passed through
this and at least three or four other depressions,
without ever knowing the meaning of the term except
through the conversation of others or from the public
press. The Maine potato farmers are men of such
calibre. Aroostook never went with hat in hand and
tongue in cheek to Washington seeking farm relief,
though now, if ever, it has had reason. Perhaps it
is because the men of Aroo,stock are real husbandmen
with ordinary holdings, and not wheat, hog, or cattle
growers operating vast haciendas. If crops fail or
markets glut and break, these men take their losses
quietly, turn to, and plant again.
It is characteristic of real workers that their
labors are intense and constant, and their wants
extremely few, whether they live in mansions or in
garrets. They have no time to care. They need no
radios, moving pictures, prize fights, or silk shirts.
The late Major Pond, noted in earlier days as a
director of lecture tours,once telegraphed the famous
zoologist, Professor Alxendar Agassiz of Harvard,
offering him $10,000 for 10 lectures. Agassiz
promptly replied, "No, thanks; I am too busy to
make money."
The money maker is not necessarily rich; he is
imply one gainfully employed for gain, an overreacher. True workers are steadily occupied for duty
or for joy. Gain is to them as incidental as their
food. The great merchant or business man to whom
profit is the motive force of endeavor never makes
gain his objective. The enterprises of a Stephen
Girard, a George Peabody, a John Wanamaker, a

378

Financial Chronicle

Benjamin Altman furnish the means of livelihood
to multitudes, their sagacity informs them from the
outset that without profit their projects cannot endure. Such men have always been wise in their day
and princes of generosity. They gather by cents and
mills only to distribute with force and grandeur. As
truly as the artist they go to nature, which spends
in lavish and magnificent forms the energy gathered
in atomic particles and tiny seeds. The wise Dr.
Jonson said: "A man cannot be more innocently
employed than in making money."
In the Cape Cod section there is a house painter
who, as it chances, is also a painter in the fine art
sense. An internationally known scientist sent for
him to paint his house not long ago. The painter,
who was of the ancient tradition of workmanlike
integrity, looked the house over. It took him but a
few minutes. "Doctor, your house don't need painting. It is in good condition and beautiful as it is,
and in harmony with its surroundings." And off
he went.
A few years ago a number of locomotive models
were exhibited in the Grand Central Station at New
York City. Perhaps there were 20 or more of these
miniature locomotives, all marvelously wrought, portraying the development of steam transportation
from the earliest days. They were made by a journeyman iron worker in his spare time, his only tools
a jack-knife and a whetstone. Perhaps this exhibition is still going about the country. Each model
must be worth a good year's wages. Can one imagine
such a workman concerned with any sort of depression? Can we not imagine him rather having for a
motto, for a principle of life, "Be silent and work."
There is to-day somewhere in New Jersey a maker
of ship models whose work has been highly acclaimed
both here and abroad. He would scorn a 34-hour
week. One hundred and twelve hours are all too
short.
If we could but have heard it, and the mind can
hear it, there was heavenly music in the clatter of
the old wooden clogs of Antonio Stradivari as he
climbed his attic stairs in Cremona to select a suitable piece of wood for another faultless violin, now
so precious and costly. So he earned his living, gainfully employed but never for gain. How the block
he picked up must have trembled with delight at his
touch! For every apparently inanimate thing has
in some mysterious way a yearning for a master
workman's recognition and transforming touch. It
was Pythagoras who said, "Not every kind of wood
is fitting to make a Mercury." But the proper wood
somehow falls into the master's hand. There in the
magic and the genius of silence, closing out everything but the subject in his mind,it comes about that
an identification takes place between the sincere
workman and the erstwhile inanimate object. The
clay knows the potter and yields to him because the
potter knows the clay, that was and now is not, but
has become a Grecian urn or a Chinese vase. Poets
will sing odes to it; Croesus will pay gold for it and
preciously encase it from harm and dust and all
decay.
The work of such men lives after them even if
their labors are not concentrated on physical objects.
Nearly everyone has heard of 'Molokai and Father
Damien,thanks to Robert Louis Stevenson. But the
Belgian monk had been buried in his work among
the lepers for more than a quarter of a century before
the logic of events called forth Stevenson's famous




Ian. 21 1933

defense. Almost equally well known throughout at
least the better informed part of the world has been
Blackwell's Island in the East River, in New York
City. The island is less than a half mile wide and
hardly two miles long. At one time it harbored more
misery probably than any other square mile in the
world—criminals of every class, insane, paupers and
sufferers from every known form of incurable disease. For more than 25 years a clergyman of
the Episcopal Church was domiciled, a voluntary
minister to these utterly outcast and forgotten
wretches. He knew nothing of depressions or shorter
work-days, though certainly he was familiar with the
minimum wage, for his compensation was under a
thousand dollars a year. He was not an optimist,
a member of that vast army which Agnes Repplier
designated the "glad clan." He did not wear the
rose-colored spectacles of the philosopher Leibnitz,
who pronounced this the best of all possible worlds.
Nor was he a pessimist. He walked his self-chosen
path of horror with open eyes, impelled to devote all
his energies to the mitigation of evil in this one corner
where hope had died. He worked from early morning
until long after dark every day, and there was seldom
a night during those long years when he did not have
to rise from his bed.
There is magic and genius in men so impelled.
There is music in their coming and going. Their
presence is a silent song. The play of their instruments, whether chisel, gouge, knife, plane, brush, or
pen is orchestral. It is good to know that there are
men to whom the work is everything and who in
silence acquire confidence and power.
Freak Theories in Times Out of Joint.
In time of prosperity some persons may look upon
money as "filty lucre," and the love of it has been
referred to as "the root of all evil." Long ago, in
the days when Dan Rice was as famous as a showman as P. T. Barnum became later, a ring master
of the Rice one-ring circus, corrupting the quotation, referred to money as the root of all evil, whereupon the clown replied that the appraisement was
all right with him so long as he had plenty of the
"root." Were the clown living to-day he probably
would be a bandit
During these times of adversity the unit of value
is more highly regarded and the old term "Almighty
Dollar" more nearly expresses the feelings of the
average citizen.
Although the stocks of money in the United States
rose $277,000,000 to $9,698,503,044 during the year
1932, a great many persons, who for lack of employment or other reasons, are laboring under the impression that there is not enough money to go around.
Believing that they do not get their share, they
clamor for an increase of the circulating medium.
Others who adhere to the old-fashioned notion that
the only way to acquire riches is by the exchange of
goods or services are plodding along endeavoring to
obtain what is justly due to them and are not bothering much about theories.
All of the old fallacies bob up in these troublous
days. There are those who advocate the operation
of the printing presses, which notion recalls the
period when unlimited issues of greenbacks to an
extent which would create fiat money were seriously
upheld. But, as usual, the good common sense of
the American people prevailed, and the "greenhackers" were squelched.

Volume 136

Financial Chronicle

Free coinage of silver had to have its day, and it
became a national issue, only to be defeated at
the polls.
Recent Washington dispatches tell of the formation of a committee of 21 Senators to recommend
some way of deflating the dollar, which they maintain will now purchase two dollars worth of goods.
There is no doubt that the times are out of joint,
when farm products and goods manufactured by a
large variety of industries command extremely low
prices in the open market.
The committee of Senators, by the way, is comprised almost wholly of statesmen from Western and
Southern States. No one hears of like committees
being formed to look after the interests of the manufacturers and distributors.
Farmers in Iowa and Nebraska have taken affairs
in their own hands and by force undertake to prevent other farmers from marketing farm products
at prices which the objectors consider as unreasonably low. Even in the old Keystone State and in a
county where former Senator Grundy, a staunch
advocate of high tariffs, resides, farmers interfered
with free bidding for a farm, crops and utensils when
offered at public sale, the personal property receipts
aggregating only $1.18, the bids being made by the
objectors and the property not being removed from
the premises.
One town in Iowa, Hawarden,has devised a system
of certificates which are to be substituted for money.
As each holder of a certificate parts with it he
attaches a stamp, and when the amount of stamps
attached equals the face value of the certificate the
certificate is returned to the town treasury.
Neither economists nor financiers are idle, and
they have advanced many theories as remedies for a
perplexing situation, but the old-fashioned cure of
hard work and thrift thus far appears to be quite
generally overlooked, one stumbling block for the
worker being that he is quite unwilling to accept for
his services a price which an employer feels that he
can afford to pay.
Compulsory Pension Plans for Railway
Employees.
Testimony in opposition to the Federal compulsory retirement plans for railway employees as embodied in bills introduced by Senator Wagner of
New York and Senator Hatfield of West Virginia
was presented last Monday by the Association of
Railway Executives at a hearing on those bills before a subcommittee of the Senate Inter-State Commerce Committee.
Dr. Julius H. Parmelee, Director of the Bureau
of Railway Economics, told the subcommittee, of
which Senator Wagner of New York is Chairman,
that due to their present financial condition the railroads are in no position to have any new financial
burdens placed on them, such as would come from
the proposed compulsory pension plans.
He said upon the request of the Railroad Pension
Committee of the Association of Railway Executives,
the Bureau of Railway Economics has made a special
study of 129 Class I roads or systems, whose employees at the time of their report aggregated a total
of 1,215,897. This study made a distribution of
these employees according to age and according to
the number of their years of service. The study
showed the ages of employees to be distributed as
follows:




65 years and over
60 to 64 years
50 to 59 years
40 to 49 years
30 to 39 Years
Under 30 years

379
Number. Per Cent. of Total
51,710
4.25
5.58
67,827
19.27
234,344
29.90
363,505
27.17
330,320
13.83
168,191
1,215,897

100.00

The study also showed that these employees were
distributed according to years of service as follows:
50 years and over
40 to 49 years
30 to 39 Years
20 to 29 years
Under 20 years

Number. Per Cent. of Total.
3,588
0.30
2.71
32,980
83,021
6.83
225.240
18.52
71.64
871,068
1.215,897

100.00

These figures give a general picture as to the ages
of employees in railway service, and the length of
that service, which are important factors in figuring
the cost of any pension plan.
The Bureau of Railway Economics has also made
a study of railway pension plans now in effect on the
railways of the United States, including the Pullman
Co. and the Railway Express Agency.
Formal pension plans have been set up on 51 railways or systems. The earliest of these 51 plans was
inaugurated in 1884, and the latest one in 1929. Informal pension plans exist 011 23 railways or systems.
These range, as to year of inauguration, from 1890
for the earliest plan to 1929 for the latest plan.
Indefinite plans also exist on 10 railways or systems, which grant pensions of specific amounts to
employees as and when they retire from the service,
each case being usually handled separately and on
its merits.
Thus, Dr. Parmelee pointed out that 84 railway
companies or systems now pay pensions to their
retired employees on some more or less definite
basis. These companies cover 207,216 miles or road
and 90.6% of the total number of employees of the
Class I railroads, including the Pullman Co. and
the Railway Express Agency. None of the plans
adopted by these roads involve any contribution
from the employees, but all are financed by the railway companies themselves. The fact that many
railway companies have already instituted pension
plans under their then existing financial conditions
indicates that they are not opposed to pensions as
such. Any new proposal in that direction, however,
must be considered in connection with its effect on
their ability to pay.
As indicated by the two tables shown above, the
provisions of these plans vary. In the case of the 74
formal and informal plans, 62 provide pensions on
account of age, 72 on account of disability, and 10
on account of length of service. Except in a few
instances, retirement is compulsory at the age of 70.
The 74 railway companies or systems with formal
or informal plans reported a total number of pensioners of 30,096 at the end of 1925, and 49,597 at
the end of 1931. Thus the number on their pension
rolls increased 64.8% in six years. In 1925 a total
of 5,278 employees were granted pensions; this number increased to 8,022 in 1931. The total number
granted pensions from the inauguration of all these
pension plans down to the end of 1931 was 103,553.
Total payments for pensions, from the beginning
date of each plan to the end of 1931, amounted to
$272,273,497. This total cannot be reduced to an
annual average because the plans became effective
in different years. Total payments for pensions in
1925 amounted to $15,694,000 and increased to $32,630,000 in 1931, an increase of 108%.
Class I railroads in 1931 had a net income of $134,762,000. Pension payments in that year totaled

Financial Chronicle

380

$32,630,000, or 24.2% as great as the net income.
Had these pension plans not been in effect in 1931,
the net income of the railways would have been increased by nearly one-fourth.
Rail carriers as a whole failed to earn their interest and other fixed charges by a considerable
margin in 1932. Out of a total of 162 Class I railways or systems,115, representing 74.9% of the total
mileage,operated at a loss during the first 10 months
of 1932. The aggregate net deficit, after fixed
charges of the Class I railroads for the first 10
months of 1932, was $148,000,000. The total amount
expended in pensions in 1932, therefore, represented
an increase in the net deficit beyond what it would
have been had the pension plans not been in effect.
Dr. Parmelee states that this comparison* was
made to indicate that the railroad industry is in no
position to have any new financial burdens added
to its nresent and current obligations.
Course of the Bond Market.
The general bond market, after enjoying a good advance
for several weeks, turned irregular this week and lost a
considerable portion of its recent gain. Bonds in all groups
and rating classifications were adversely affected, the highest
grade bonds, of course, suffering the least. At the close of
the week, on Friday, Moody's price index for 120 domestic
bonds stood at 82.99 as compared with 83.85 a week ago
and 81.66 two weeks ago.
United States obligations lost some ground temporarily
as was to be expected after the recent considerable rise,
but have since regained most of the loss. Other than a
technical reaction, another cause for the price decline in
Government bonds may have been fears of early Treasury
financing on a long term basis. There is, however, considerable doubt whether these expectations are justified.
Outside of the still unbalanced position of the Federal
budget, the reason for this doubt is that at the present time
the New York money market is supplying the Government
with funds, and as this market does not buy long term bonds
in large amounts (the private investors, insurance companies and institutions are the real market for long term
Government bonds and these are still timid), the only
recourse left to the Treasury is to continue its present short
term financing policy. Another factor which possibly
affected Government bond prices adversely was the Reserve
System's modified open market policy. Recently the Reserve
banks have been letting small amounts of short term Treasury bills mature without replacing them; it is felt that this
might lead to a moderate tightening of interest rates. After
declining sharply during the first few days of the week,
prices advanced at the end of the week almost to former
highs. Strength was particularly evident among shorter
maturities, reflecting the cut in Clearing House interest
rates. Moody's eight long term Government bond price
index declined slightly to 103.31 on Friday from 103.36 a
week ago and 103.45 two weeks ago.
Railroad bond prices receded during the first four days
of the week, but were inclined to be firm or show moderate
strength in the last few days. The early losses were not fully
offset by the later gains, and, for the most part, prices at
the close of the week were lower than at the opening. This
was, however, not true of all issues. Among the net declines
registered were those in Great Northern gen. mtge. 7s,

MOODY'S BOND YIELD AVERAGES.
(Based on Individual Closing Prices.)

MOODY'S BOND PRICES.*
(Based on Average Yields.)

1933
Daily
Averages.

,

AU
120 Domestics by Rat no:.
120
DomesBaa.
Aa.
A.
tic.
Aaa.

Jan. 20
19
18
17
16
14
13
12
11
10

a
a

82.99
82.87
82.74
83.23
83.60
83.72
83.85
83.97
83.35
82.62
82.26

105.03
105.03
105.03
105.20
105.54
105.54
105.54
105.54
105.20
105.03
104.85

81.66
80.84
80.49
79.91

104.85
104.33
104.51
104.16
ior.
103.99
85.61
106.96
87.96

7
4
3
2
High 1932
Low 1932
High 1931
Low 1931
Year AgoJan. 20 1932
Two Years AgoJan. 21 1931

82.62
57.57
93.55
62.56

91.81
91.53
91.53
91.96
91.96
92.25
92.25
92.39
92.10
91.39
91.25
Stock
90.69
89.86
89.45
89.04
Stook
89.72
71.38
101.64
76.03

Jan. 21 1933

1936, from 64 to 603/2; Chicago Milwaukee St. Paul &
Pacific 50-yr. mtge. 5s, 1975, from 203/i to 183/8; Baltimore
& Ohio cony. deb. 434s, 1960, from 297
/s to 273; Chicago
Rock Island & Pacific 1st & ref. mtge. 4s, 1934, from 293/4
The
to 243/i.
very highest grade bonds lost ground, too,
3 to
Norfolk & Western 1st cons. mtge. 4s, 1996, from 99%
9732; Union Pacific 1st mtge. 4s, 1947, from 993'z to 99;
7
Atchison gen. mtge. 4s, 1995, from 953i to 94%.
Highly
erratic price fluctuations for many of the low priced speculative issues occurred apparently as a result of further uncons
firmed rumors regarding additional railroad receivershipin the near future. Trading was very heavy in the Missouri
Pacific issues and the price movements wide, the 1st & ref.
mtge. 5s of various maturities beginning the week at prices
between 23 and 24 and declining to levels around 18 and
ending the week around 21. Moody's 40 railroad bond price
index stood at 75.09 on Friday, 75.71 last Friday and 71.96
two weeks ago.
Softness prevailed throughout the utility bond market
during the week. Such issues as Louisiana Power & Light
5s, 1957, lost 1% points to 92%; Florida Power & Light 55,
1954, lost 33/2 points to 66, and New Orleans Public Service
5s, 1955, lost 13/2 points to 62 for the week. High grade
utility bonds held up pretty well with such issues as Consolidated Gas of Baltimore 4s, 1981, losing % points to 983/8,
%.
and Philadelphia Electric 4s, 1971, losing % points to 987
Financing fell off during the week and only the $11,250,000
Union Electric Light & Power 43/2s, 1957, were offered.
The utility price index on Friday was 88.23 as compared
with 89.17 a week ago and 88.23 two weeks ago.
After a two-weeks period of general strength, industrial
bonds turned irregular and lost considerable ground this
week. Sympathy with a reactionary shares market and
numerous rumors regarding forthcoming reports and readjustments were reflected. After a 23-point break on Friday,
the 13th, the day before McCrory Stores petitioned bankruptcy, this company's debenture 57%s, 1941, stabilized
around 35. Price cuts in the steel industry brought offerings
of bonds in this group and moderately lower quotations.
Rubber issues were irregularly and mildly weaker. National
Dairy 53(s, 1948, reacted violently from 907% to 83, but
recovered to 847% on Friday. Paramount and R K 0 bonds
receded to close to record low levels as wider picture house
admission cutting was noticed. The McCrory affair and
poor current reports on retail trade brought chain store and
°the' merchandising issues into disfavor, varied losses being
recorded. Oils behaved relatively well, though recording
8-point drop in Texas Corp. 5s,
/
some losses, such as a 15
1944. The price index for this group imished the week at
86.64, as compared with 87.56 a week before and 86.38 two
weeks before.
This week's foreign bond market witnessed a pronounced
reaction from the strength exhibited in previous weeks.
The decline in price particularly affected all classes of German
bonds. Argentine, Chilean and Danish issues also lost
some ground. Norwegian and Finnish bonds, on the other
hand, gained fractionally, with the exception of the Helsingfors (Finland) 67%s, which lost 3 points. Japanese public
utility credits also evidenced some strength. The obligations
guaranteed by the Japanese Government declined slightly,
while its direct liabilities showed virtually no change in
price. Italian and Polish bonds were irregularly lower.
Moody's bond yield average for this group was 9.85% on
Friday as compared with 9.62% a week ago and 9.98% two
weeks ago.
The municipal market this week continued quiet but firm.
The State of Louisiana was able to dispose of $5,000,000
bonds with a 6% coupon at 96.07. A legal decision of importance to holders of obligations of towns in most counties
of New York State was rendered by the Court of Appeals,
obliging counties to buy town tax delinquencies:
Moody's computed bond prices and bond yield averages
are shown in the tables below:

120 Domestics
Si, Groups.
RR.

81.07 63.11 75.09
80.84 63.19 74.98
80.72 62.95 74.57
81.18 83.58 74.98
81.54 64.06 75.40
81.66 64.06 75.50
81.90 64.31 75.71
81.90 64.55 75.71
81.30 63.82 75.09
80.26 63.11 73.85
79.80 62.64 73.05
Exeha nge Clo Bed.
79.34 61.56 71.96
78.10 60.97 70.71
77.55 60.52 70.05
77.00 60.01 69.59
Excha nge Closed.
78.55 67.86 78.99
54.43 37.94 47.58
92.97 78.55 95.18
59.87 42.58 53.22

P. U. Indus.
88.23
88.10
88.10
88.63
88.90
89.04
89.17
89.31
89.04
88.77
88.63

86.64
86.64
86.64
87.30
87.58
87.56
87.56
87.69
87.30
86.91
86.64

88.23
87.30
87.04
86.38

86.38
86.12
85.99
85.74

87.69
651
96.85
73.55

85.61
62.09
90.55
63.74

All
120
1933
Domes
Daily
Averages. tic.

120 Domestics by Rat ngs.
Aaa.

Aa.

5.96
5.97
5.98
5.94
5.91
5.90
5.89
5.88
5.93
5.99
6.02

4.45
4.45
4.45
4.44
4.42
4.42
4.42
4.42
4.44
4.45
4.46

5.29
5.31
5.31
5.28
5.28
5.26
5.26
5.25
5.27
5.32
5.33

6.. 6.07
6.14
4. 6.17
6.22

4.46
4.49
4.48
4.50

5.37
5.43
5.46
5.49

5.99
8.74
5.17
8.05

4.51
5.75
4.34
5.57

5.44
7.03
4.65
6.57

Jan. 20..
19._
18._
16.
14
13..
12.
10._

Low 1932
High 1932
Low 1931
High 1931
Yr. AgoJan.2032
2 Yrs.A go
Jan .21'31

A.

Baa.

120 Domestics
by Groups.
RR.

40
ForP. U. Indus. eign:.

6.66
7.08
5.55
6.12
6.67
5.56
7.97
6.14
6.71
5.56
8.00
6.15
6.67
7.92
5.52
6.11
6.63
7.88
5.50
6.08
6.62
7.86
5.49
6.07
7.83
6.60
5.48
6.05
6.60
7.80
5.47
6.05
7.89
6.66
5.49
6.10
7.98
6.80
6.19
5.51
6.86
8.04
6.23
5.52
Stock Huhn nge Clo ed.
8.18
6.97
5.55
6.27
8.26
7.10
5.62
6.38
8.32
7.17
6.43
5.64
7.22
8.39
6.48
5.69
Stook Exeha nge Clo sed.
7.41
6.30
6.34
5.59
9.23 12.96 10.49
7.66
6.34
5.06
5.21
4.95
9.43
8.41 11.64
6.81

5.67
5.67
5.67
5.62
5.60
5.60
5.60
5.59
5.62
5.65
5.67

9,85
9.93
9.95
9.88
9.76
9.67
9.62
9.60
9.61
9.84
9.93

5.69
5.71
5.72
5.74

9.98
10.02
10.11
10.19

5.75
8.11
5.38
7.90

9.86
15.83
6.57
16.58

8.85
6.90
6.96
5.96
5.17
6.18
6.72
7.03 13.25
93.55 82.99 72.65 56.84 72.06 80.37 71.38
5.27
6.41
7.01
4.68
4.40
5.06
5.19
5.43
5.09
194.73
89.86
77.77
195.18
92.10
101.14
105.89
93.26
of one "Ideal" bond (45i% coupon, maturing in 31 years) and do not purport to show either
sNose.-These prices are computed from average yields on the basis
more
way
comprehensive
the relative levels and the relative
actual price quotations. They merely serve to Illustrate In a
the average level or the average movement ofthe
truer picture of the bond market.
movement or yield averaged, the latter being




74.46

Volume 136

Financial Chronicle

381

Bank Clearings in 1932 and the Course of
Trade and Speculation
Figures of bank clearings furnish perhaps the best
indication of the changes in business and trade and
of financial and speculative conditions to be found
in the statistical world. And the clearings records
for 1932 bear eloquent testimony to the depth and
intensity of the business depression and the general
financial and commercial paralysis with which the
United States and the world at large had to contend
during the whole 12 months of the year. The depression grew steadily worse as the year progressed,
the course of trade continuing steadily downward
except for a slight and very brief turn for the better
which came in the early summer months and which
found expression mainly in the textile trades. This
persisted only for a few weeks even in those trades
and signs of its presence almost entirely disappeared
under the blighting effects of the Presidential campaign, which in the end assumed great bitterness
and virulence with the result of producing growing
hesitancy in business circles. And the hesitancy
was not relieved even after the result of the Presidential election was known, since the business world
was now confronted with uncertainty as to how and
when the policies of the President-elect Franklin
D. Roosevelt and the Democratic Party, both of
which achieved overwhelming triumphs at the polls,
would be carried out. It is the literal truth to say
that the year opened in gloom and gloom was still
all pervading when the year closed, and in greatly
aggravated form.
Bank clearings had suffered enormous shrinkages
in 1930 and 1931 as the result of the industrial and
financial paralysis which had marked the course
of those years—and they suffered huge further
shrinkages in 1932 after the enormous losses suffered
the previous two years, with the result that the totals
dwindled to figures that previously would have been
regarded as unbelievable. It is perfectly safe to
say that the cumulative record of losses for these
three years, from the standpoint of magnitude and
all-pervading character, has never been paralleled
or even approached in the history of this country
and doubtless not in the history of any other country.
Taking the grand aggregate of all the clearing houses
of the country which contribute returns to our compilations, there was a decrease in 1932 as compared
with 1931 of 37.3%, after a decrease in 1931 as compared with 1930 of 24.5%, and a decrease in 1930 as
compared with 1929 of 25.4%. The result is that
the grand total of the clearings for 1932 stands at
only $256,744,491,993, against $409,568,489,920 in
1931, $542,243,060,904 in 1930 and $726,884,632,647
in 1929. In other words, the total for 1932 at
$256,744,491,993 is little more than one-third the
total of $726,884,632,647 recorded three years before
in 1929. As a matter of fact, it would be necessary
to go back all the way to 1915 to find a total of clearings smaller than that for 1929.
Every month of 1932 showed lower totals of clearings than the corresponding month of 1931, just as
every month of 1931 had recorded lower totals than
the corresponding month of 1930 and every month
of 1930 lower totals than the same month of 1929.
The statement can be made much broader as showing
the uninterrupted contraction during the whole of
the period since the collapse in the closing months




of 1929, by saying that in the whole of this period
there has never been a single week where the volume
of the clearings did not fall below the volume of that
of the previous year. On account of seasonal variations there have been occasional weeks which did
not show smaller clearings than the week preceding
or the week following, but never has there not been
some contraction in the comparison with the corresponding week of the previous year, which is the
only true basis of comparison. And the story is
the same as regards all the different sections of the
country. The losses everywhere have been continuous and cumulative during the whole of the
period of unparalleled depression. The situation
might be accurately summarized by saying that in
nearly all lines of industry business towards the end
of 1932 came almost near an absolute standstill.
Take first the case of the lumber industry, much was
said during the year of the desirability of stimulating
the building trades and especially of encouraging
home building. Yet the lumber mills closed the year
with the lowest production reported for any week
in the 17 years during which the "National Lumber
Trade Barometer" has been issued, according to
reports to the National Lumber Manufacturers'
Association from regional associations covering the
operations of 783 leading hard-wood and soft-wood
mills. Production for the closing week of 1932 was
only 12% of capacity, though new business for that
week was 17% of capacity. Compared with the
corresponding week of the previous year, all regions
showed a decline in production and also in new
business, the latter dropping to 17% below the
similar week of 1931. Moreover, preliminary estimates indicated for the 12 months of 1932 a production drop of 42% as compared with 1931. The
Lumber Manufacturers' Association stated that lumber production in 1932 would be less than 10,000,000,000 feet, or lower than for more than 60 years.
It estimated the product of 599 comparable mills
in 1932 at only 5,444,819,000 feet compared with
9,275,809,000 feet for the 52 weeks of 1931. Production of 660 comparable mills for 1931 was estimated
at 9,603,981,000 feet, against 14,101,648,000 feet
in 1930 and 18,469,200,000 feet in 1929. Of course
this collapse reflects the fact that building operations were on a greatly reduced scale, and on
that point we may note that for the 12 months
ended Dec. 31 1932 the F. W. Dodge Corporation
computes that the construction contracts awarded
in the 37 States east of the Rocky Mountains involved an outlay for that period of only $1,351,158,700 as against $3,092,849,500 in the 12 months
of 1931, $4,523,114,600 in the 12 months of 1930,
$5,754,290,500 in the 12 months of 1929 and $6,628,286,100 in 1928. It will be observed that the
amount for 1932 was only about one-fifth what it
had been back in 1928. S. W. Straus & Co. in their
compilation dealing with building permits in 577
cities find that the permits covering the calendar
year 1932 involved contemplated expenditures of
only $502,847,959 against $1,334,527,845 in 1931,
$1,928,392,507 in 1930, $3,379,977,311 in 1929,
$3,827,821,447 in 1928, $3,927,901,236 in 1927,
$4,378,424,073 in 1926 and $4,578,593,689 in 1925.
The steel [mills:of the: country also came close to

382

Financial Chronicle

a complete standstill in their operations. This is
evident from the fact that the "Iron Age" in the
closing week of the year reported the mills engaged
to only 13% of capacity and as indicating how
accustomed the country has become to seeing production down to a low ebb and inclined to hail with
satisfaction anything to indicate that things are not
quite as desperately bad as might have been feared,
the "Age" derived comfort from the fact that production did not in the closing week reach quite as
low a point as during the Fourth of July holiday
period at the beginning of the summer when production was only 12% of capacity. As indicating,
moreover, how little the steel industry participated
in the recovery which came during the summer and
was led by the textile trades, it deserves to be placed
on record that the highest rate of production in the
steel industry in any week of the last half of 1932
was in the week of Nov. 3 when the steel mills were
engaged to 20% of capacity. Steel production in
the shape of ingots aggregated only 13,095,727 tons
in 1932, against 25,192,715 tons in 1931, 39,286,287
tons in 1930 and 54,312,279 tons in the calendar year
1929. In other words, the steel product of the
United States in 1932 fell over 41,000,000 tons below
that of 1929. This furnishes an idea of the utter
stagnation that prevailed; in this case operations
were only 14.26% of capacity in August, 17.34% in
September, 19.00% in October, 18.05% in November
and 15.02% in December. The make of pig iron,
according to the figures of the "Iron Age," was only
8,686,443 tons in 1932, in comparison with 18,275,165
tons in 1931, 31,399,105 tons in the calendar year
1930 and 42,285,769 tons in 1929. A product for
1932 of only 8,686,443 tons as against 42,285,769
tons in 1929 makes a contrast just as noteworthy as
the shrinkage in steel production.
However, in whatever direction we turn, the record
is one of curtailment of output in most extraordinary
fashion. Automobile output for the calendar year
1932 numbered only 1,426,966 vehicles against
2,468,000 vehicles in 1931, 3,355,986 in the calendar
year 1930 and 5,358,420 in the calendar year 1929.
Here again the contrast between the profusion of
cars turned out in 1929 and the meagre lot turned out
in 1932 is full of significance as indicating the collapse
of the automobile industry, which perhaps suffered
a more pronounced setback than any other industry.
Coal production likewise suffered a further big
slump. The quantity of soft coal mined in the
United States during the calendar year 1932 (including lignite and coal coked at the mines) is put at
305,667,000 tons. This compares with 382,089,000
tons in 1931, with 467,526,000 tons in the calendar
year 1930 and with 534,989,000 tons in the calendar
year 1929. This is a falling off in the annual output
of 229,000,000 tons in three years. If, however, we
go back to 1926, when the output of soft coal was
573,367,000 tons, the falling off as compared with
that year is seen to have been 267,000,000 tons.
This most assuredly furnishes an idea of the extent
to which coal mining, by reason of the business depression as its main cause, has dwindled and shrunk.
In addition, however, the mining of hard coal has
also been reduced. The production of Pennsylvania
anthracite for the 52 weeks of 1932 is estimated at
49,350,000 tons, as compared with 59,646,000 tons
in the 52 weeks of 1931, 69,385,000 tons in 1930,
73,828,000 tons in 1929, 75,348,000 tons in 1928 and
80,096,00G tons in 1927. The falling off here, how-




Jan. 21 1933

ever, cannot be ascribed entirely to business depression, since hard coal by reason of its high price
has been steadily losing its market to other classes
of fuel, more especially oil.
In addition to the drop in production all around,
the decline in prices necessarily must have played
an important part in reducing the totals of bank
clearings. Prices were lower in all directions. Security values, both stocks and bonds, sustained
unparalleled depreciation, and commodity values
tumbled still further, while the collapse in the market
price of agricultural products reached the proportions
of a national calamity. And the distress of the
farming classes, with the great diminution in their
buying power, served greatly to accentuate the
effects of trade depression. Wheat prices reached
the lowest figures recorded in centuries and cotton
prices after an upward spurt during the summer,
caused by a low estimate of the growing cotton crop,
dropped back again towards the close of the year.
The further break in grain prices occurred in the
closing months of the year. The wheat crop of this
country in 1932 did not reach the huge proportions
of that of the previous year. The spring wheat
yield, which the previous year was very poor, was
larger at 264,680,000 bushels as compared with only
112,826,000 bushels in 1931, but the winter wheat
production reached only 462,151,000 bushels as
compared with 787,393,000 bushels harvested in
1931. This made the combined'production for 1932
726,831,000 bushels, as against 900,219,000 bushels
in the previous year. On the other hand, however,
the Canadian crop proved much larger, and Canada
succeeded in pre-empting the foreign market and in
particular the British market to the detriment of
surplus wheat coming from the United States. The
latter part of the year the Ottawa trade agreements
under which Canada is given a preference of 6c. a
bushel, Dominion wheat being allowed to enter free
while American and other foreign wheat is taxed
6c. a bushel, played an important part in ousting
American wheat from Great Britain. The fact that
the Canadian dollar was greatly depreciated, the
Canadian dollar in New York City being quoted at
a discount of 10@,15%, operated to the further
advantage of the Dominion farmer. Winnipeg prices
in the end became badly demoralized and fell away
below those in the New York market. How the
situation was working to the disadvantage of the
United States was well shown in a news article which
appeared in the "Wall Street Journal" on Dec. 14
(evening edition). Discussing the subject of wheat
prices this article said:
"With Winnipeg wheat prices down to 42%c. a
bushel in Canadian funds, about 36%c. in gold
dollars, Canada is now underselling the world in the
export markets. For the first time in many years the
Dominion bids fair to cut into the virtual monopoly
that Argentina and Australia hold on the export
markets for the first six months of each year. Argentine offerings are now being made at around 37c. a
bushel in the Buenos Aires market.
"Canada's advantage is even more pronounced
when it is taken into account that Manitobas are the
highest premium wheat in the world and normally
bring nearly 5c. more than other varieties. Moreover, in the United Kingdom Canada has the added
preference of an empire preferential of 43/2c. a bushel.
"How much wheat Canada can sell in coming
months depends on the Argentine and Australian

Volume 136

Financial Chronicle

selling policies. Normally these nations ship the
bulk of their wheat during the first six months of the
year, regardless.of price. During the past six months,
because of the failure of the United States to revert
to export parity and Russia's crop failure, Canada
has done the bulk of the business."
Two days later a still worse situation had developed.
Here is the story as it appeared in the "Wall Street
Journal" for Dec. 16:
"A wave of heavy stop-loss selling, back-spreading
against purchases in Chicago and continued country
liquidation hit the Winnipeg wheat market to-day,
prices sliding off as much as 43/
8c. a bushel. The
December delivery touched bottom at 38c. Inasmuch as Winnipeg quotations are calculated in
Canadian funds, which are currently at about a
1214% discount under gold dollars, the actual price
for December was only around 33.35c. a bushel, or
the lowest that wheat has sold in 362 years."
It subsequently appeared that the preference of 6c.
a bushel which Canada is to enjoy is to be rigidly
enforced in such a way as to guard against any
American wheat slipping in and enjoying a similar
advantage through transshipment of Canadian wheat
across American territory in its journey to Great
Britain.
As a result of all this Chicago wheat touched
another new all-time low figure. Thus the Chicago
"Journal of Commerce" on Dec. 28 reported that a
new low price for May wheat had been made the day
before when that option sold at 433
4c. per bushel on
the Chicago Board of Trade. It was the lowest price for
the May future contract ever recorded on the Chicago
Board and little more than half of the cost of production as claimed by many farm spokesmen. The
next day (Dec. 28) a still lower figure was reached at
433/0., though the closing price for that option on
Dec. 30 was 45Nc. (The Board of Trade was closed
on Dec. 31). On Dec. 31 of the previous year the
May option at Chicago closed at 565
4@ 57k•
It should be understood that this loss of value
during the 12 months interval occurred in face of the
fact that the Federal Farm Board disposed of all
of its large holdings of wheat during the year. On
March 7 1932, President Hoover signed a resolution
of Congress calling for the distribution of 40,000,000
bushels of wheat held by the Farm Board to be made
available for relief purposes through the American
National Red Cross. On July 5 1932 he signed the
resolution calling for the distribution by the American
National Red Cross of another 45,000,000 bushels of
wheat besides 500,000 bales of cotton, Government
owned. On July 7, James C. Stone, Chairman of the
Federal Farm Board stated orally that sales of wheat,
and legislation for free distribution of the grain to
the needy, had brought the cash wheat supplies of
the Corporation available for sale down to slightly
less than 30,000,000 bushels and said that this comparatively small amount could not prevent any
upward movement of prices which the grain trade
might be able to foster. How far from any recovery
in prices having ensued later in the year, has already
been indicated in the remarks above.
As to the low level of prices for cotton an upward
splurge occurred in August, which it was supposed
would act to the permanent advantage of the staple,
but as to which expectations were again disappointed
later in the year. The rise in the price of the staple
then was of notable proportions, the market value of
raw cotton having nearly doubled in the space of a
few weeks. The spot price of cotton on the New




383

York Cotton Exchange on June 9 had got down to
only 5c. a pound, the lowest figure ever recorded
on the New York Cotton Exchange and had recovered only to 5.80c. on June 30 and did not at any
time during July get much above 6c. and on Saturday, July 30, was quoted at 6.05c. The market had
entirely ignored the Agricultural Bureau report from
Washington issued on July 8 which estimated the
cotton area in the South for 1932 at only 37,290,000
acres, or 91A% less than the area in cotton on July 1
of the previous year when 41,491,000 acresiwere
planted to cotton. This followed a reduction, too,
in 1931 as compared with 1930 of 10%, though the
1931 cotton crop nevertheless proved of unusual size
owing to extraordinarily favorable growing conditions. As a matter of fact, the 1932 acreage at
37,290,000 acres was lower than the planted acreage
of any year since 1922 when 34,016,000 acres were
planted. Yet this drastic cut in acreage at the time
of its announcement was almost without influence
on the market price of the staple. An eye-opener,
however, came when the Agricultural Department,
a month later, on Aug. 8, gave out its estimate of the
prospective yield in 1932 and put the probable crop
at only 11,306,000 bales, as against an actual crop in
1931 of 17,096,000 bales. This was over a million
bales less than private estimates of the probable size
of the crop. This Bureau report had an electrical
effect on the market price of the staple, and the
spot quotation at New York which on Saturday,
Aug. 6, had been 6.20c. was marked up on Monday,
Aug. 8 to 7.05c. and a rapid advance followed thereafter with the result that on Monday, Aug. 29, the
quotation was up to 9.20c. with the price Aug. 31 at
8.40c. It should be added that the July 1933 option
for cotton on the New York Cotton Exchange on
Monday, Aug. 29, actually sold up to 10c. though
some reaction then came, with the close Aug. 31
at 8.93c.
This rise in price during August was achieved
notwithstanding that the Federal Farm Board was
actively engaged in selling through the Cotton
Stabilization Corporation some of its accumulations
of the staple. The action of the Federal Farm Board
and the Reconstruction Finance Corporation with
reference to the Government holdings of cotton
attracted a good deal of attention and apparently
there was some conflict in the respective policies of
these two Government agencies. All through the
month of August the Farm Board, through its subsidiary, the Cotton Stabilization Corporation, appeared to be engaged in disposing of some of its
holdings of the staple. The price kept steadily rising
as already stated, in face of these sales. This action
of the Farm Board was in accordance with a statement given out by the Farm Board, the previous
May 2, saying that it would authorize a sale of
Government owned stabilization cotton not to exceed
650,000 bales during the cotton year beginning Aug. 1
1932. This attitude was confirmed in a statement
made by Carl Williams of the Federal Farm Board on
Aug. 4 saying that the Board engaged in the stabilization of the cotton market expected to dispose
of 1,150,000 bales of cotton in the new cotton year
without any disturbance to prices, 500,000 bales of
this representing cotton which the American National
Red Cross was to receive under the resolution of
Congress approved by the President, July 5 (along
with 45,000,000 bushels of wheat) to be used by the
Red Cross for relief purposes. James C. Stone,

384

Financial Chronicle

Chairman of the Farm Board, made the same statement in a letter also dated Aug. 4, and written in
reply to a proposal from Senator Gore suggesting the
advisability of impounding until Aug. 31 1933 the
cotton belonging to the Cotton Stabilization Corporation and the cotton owned by the cotton
associations, which are members of the American
Cotton Co-operative Association. In reply Mr.
Stone said that the Cotton Stabilization Corporation
owned approximately 1,300,000 bales of cotton.
Prior to Aug. 1 1932 it had not bought or sold any
cotton since July 1930. This policy was adopted so
that the cotton farmers could receive the full benefit
of the market during the two years. "However," he
said, "the stabilization cotton cannot be held indefinitely" and he also called attention to the fact
that the previous April the Cotton Advisory Committee which is composed of spinners and cotton
growers recommended to the Board and the Cotton
Stabilization Corporation that an amount of cotton
be sold the present cotton year of not in excess of
650,000 bales.
Nevertheless, and in face of all this, Jesse H.
Jones, a director of the Reconstruction Corporation
on Monday night, Aug. 29, announced that $50,000,000 had been made available to keep Government
controlled cotton off the market until 1933. More
definite news was forthcoming on Tuesday Aug. 30
and it then appeared that of the loan of $50,000,000,
$15,000,000 was to be advanced to the Cotton
Stabilization Corporation and $35,000,000 to the
American Cotton Co-operative Association. Security
for the advance, it was stated, was to be cotton now
held by these Corporations at the rate of $25 a bale.
Washington dispatches Aug. 30 stated that no part
of the money advanced was to be used for further
purchases of cotton. It was also stated that while
$25 per bale was to be the basis of the loans, it was
understood that $17.50 of this amount was designed
to take care of loans from banks and other charges,
while the remaining $7.50 per bale was intended to
give co-operative agencies more working capital,
none of the money to be used for dealing in cotton
futures.
These loans of the Reconstruction Finance Corporation removed the operations of the Federal
Farm Board as a disturbing element for the remainder of the year and thereafter the course of
cotton prices moved irregularly up and down in
accord with current influences, but on the whole
towards a lower level of values. Yet market values
may be said to have held up remarkably well in face
of certain developments that under ordinary circumstances would have exercised a very depressing
influence. Among the chief of these adverse influences may be mentioned the fact that the Agricultural Bureau at Washington found itself obliged
with each succeeding month to raise its estimate of
the size of the 1932 crop, until in December, in
making its final estimate for the season, the Department put the crop at 12,727,000 bales as compared
with 11,310,006 bales, its first estimate made in
August. Spot cotton in New York closed Dec. 30 at
6.10c. per pound as compared with 6.50c. on Dec. 31
of the previous year.
Financial operations were as depressed as trade,
and one effect of this was seen in the diminished
offerings of new securities all through the year 1932.
As a matter of fact, the marketing of new securities
was a very precarious undertaking, in view of the




Jan. 21 1933

utter loss of confidence prevailing in the industrial
and financial world. The effect of this is seen in our
compilations of the new capital flotations during the
year. Eliminating the financing, which was merely
for refunding, that is, for taking up or retiring of
existing issues, and confining ourselves entirely to
the financing that represented strictly new capital,
the new financing of 1932 reached a total of no more
than $1,190,997,289 against $3,115,507,148 in 1931,
$7,023,388,282 in 1930 and $10,182,766,518 in 1929.
In the case of corporate issues the amount of new
capital involved was only $325,361,625 in 1932, as
compared with $1,763,448,723 in 1931, $4,944,403,166 in 1930 and $8,639,439,560 in 1929.
The transportation industry was depressed, the
same as all other industries, and in fact the railroads
suffered more severely than business in any other
line of human activity. The carriers sustained losses
in earnings, gross and net, that were frightful to
contemplate. One prominent railroad system after
another passed completely off the dividend list and
many of the staunchest railroads of the country
failed to earn even ordinary fixed charges, and some
not even ordinary operating expenses. Of course the
United States Government was in a tight fix all
through the year, with a heavily growing budget
deficit which it was supposed had been balanced
before the adjournment of Congress on July 16.
However, as a result of the easy money policy of the
Federal Reserve System the Government was able to
conduct new borrowing with the utmost ease and
really at abnormally low rates of interest. For a
time in the spring the Federal Reserve banks added
to their holdings of United States Government
securities at the rate of $100,000,000 a week and the
result was such a congestion of funds at the financial
centres that in December the United States Treasury
placed $100,039,000 of 91-day Treasury bills on a
discount basis of only about nine one-hundredths of
one per cent per annum (0.09%). This meant that
the Government got the proceeds of $100,039,000 of
bills for 91 days at the trivial cost of $22,009. Several
of the short-term obligations of the United States at
the close of the year sold at figures so high that they
yielded absolutely nothing to the holders—certainly
a decidedly anomalous situation, the only plausible
explanation for this being that the holders hoped to
obtain the privilege of converting them into tax
exempt issues of longer maturities or of obtaining
preferred allotment into new obligations of longer
dates on future offerings of Government issues. All
through the year the Government and Congress were
engaged in devising relief measures with a view to
relieving suffering, but also with a view to starting
and aiding recovery in business, which latter object
was never obtained. The Reconstruction Finance
Corporation was the agency by which very extensive
financial aid was extended to the banks, to the
railroads, to insurance companies, to farmers, to
to States and municipalities, but legislation also
undertook to make other devices do duty in the same
way, mainly in the way of providing additional
credit facilities, when as a matter of fact, such
facilities already existed and were available in superabundance. The Reconstruction Finance Corporation, according to figures made public Dec. 30,
loaned altogether $1,502,168,401, of which $283,049,032 was repaid by the borrowers.
In all of the foregoing we see depicted, as was the
case in the two preceding years, a state of things the

Financial Chronicle

Volume 136

logical outcome of which, as far as bank clearings are
concerned, could not be otherwise than the huge
further shrinkage already indicated namely, a reduction in the grand total of all the clearing houses
in the country to $256,744,491,993 in 1932 from
$409,568,489,920 in 1931 following a drop from
$726,884,632,647 in 1929 to $542,243,060,904 in
1930, or, stated in another way, after a contraction
of 25.4% in 1930 as compared with 1929 and a
further reduction of 24.5% in 1931 as compared with
the diminished amount of 1930, we have now for
1932 a still further reduction of 37.3% as compared
with the heavily shrunk total of 1931. It is rather
noteworthy that the ratio of falling off at New York
is again larger than that outside of New York the
one being 39.2% and the other 34.0%, and this must
be attributed to the great prominence which financial
transactions always play at the country's financial
centre and the utter collapse in these in 1932. In
1931, the percentages of falling off were almost
identical, the ratio at New York being 24.2% and
that outside of New York 25.0%. On the other hand
in 1930, the falling off from 1929 at New York was
much larger than outside of New York, it having been
27.3% at New York and only 21.8% outside of New
York, the reason for this being that speculative operations during the stock market craze in 1929 were
more pronounced here than elsewhere, and the resulting drop in 1930 correspondingly greater.
YEARLY TOTALS OF BANK CLEARINGS.
Year.

1932
1931
1930
1929
1928
1927
1926
1925
1924
1923
1922
1921
1920
1919
1918
1917
1916
1915
1914
1913
1912
1911
1910
1909
1908
1907
1906
1905

New York
Clearings.

Inc.
07
Dec.

Clearings
Outside
New York.

Inc.
or
Dec.

Total
Clearings.

Inc
or
Dec.

8
$
$
V.
%
180,138,483,783 -19.2 96,606,028,210 -34.0 256,744,491,993 -37.3
263,270,393,958 -24.2 148,298.095,962 -25.0 409,568,489.920 -24.5
347.109,528,120 -27.3 195,133,532,784 -21.8 542.243,060.904 -25.4
477.242.282,161 +21.8 249,642,350,486 +3.1 726.884,632.647 + 14.7
391.727,476,284 +22.0 242,144.679,206 +3.7 833,872.155,470 +14.2
321,234,213,661 +10.6 233.875.528,415 +0.2 555.109.742.076 +6.0
290.354,943,483 +2.4 233.418,828,972 +2.1 523.773,772.455 +2.3
283,619,244.637 +13.5 228,596,560.498 +11.0 512,215,805.135 +12.4
249,868.181,339 +16.8 205,891,161,152 +3.1 455,759,342,491 +10.2
213,996.182,727 -1.8 199.466.248,872 +14.8 413,452.431.399 +5.6
217,900,386,116 +12.1 173,606.925,839 +7.7 391,507,311,955 +10.1
194.331,219,863 -20.0 161.256,972,863 -21.9 355.538.192.536 20.5
243,135,013,364 +3.1 206,592.968.076 +12.3 449,727.981,440 +7.6
235,802,634.887 +32.0 181,982,219,804 +18.3417.784.854.691 +25.7
178,533,248,782 +0.1. 153.820.777.681 +18.7 332.354,026,463 +8.3
177,404,985.589 +11.5 129,539,760,728 +26.7 306,944.728.317 +17.2
159.580.645,590 +44.4 102.275,125.073 +32.4 261,855,773,663 +39.4
110,5e4,392,634 +33.2 77.253,171.911 +7.0 187,817.584.545 +20.9
83,018.580,016 -12.3 72,226,538.218 -3.9 155,245.118,234 -8.9
94.634,281.984 -6.1 75.181,418,616 +2.7 169.815,700,600 -2.9
100,743,967,262 +9.1 73.208,947.649 +7.9 173,952.914.911 +8.9
92,372,812,735 -5.0 67,856.960,931 +1.8 160,229,773.686 -2.9
97,274,500,093 -6.1 66.820.729,906 +7.3 164.095,229,999 -15
103,588,738.321 +30.7 62,249,403.009 +17.2 165,838,141.330 +25.1
79.275,880,256 -9.1 53,132,968,880 -8.4 132,408,849,136 -8.8
87,182,168.381 -17.5 57.843.565.112 +4.8 145.025,733,493 -9.2
W5,678,828.656 -12.5 55.229.888.677 +10.1 159,905.717.633 +115
93.822 um 90) -1-7il 7 00 MIK RIZQ 970 -I- 11 0 111 007 Ale All .1.071

Note.-Seginning with 1920 clearings outside of New York do not Include St.
Joseph, Toledo, and about a dozen minor places which in 1919 and previous years
Contributed regular returns, but now refuse to furnish reports of clearings. The
omitted places added, roughly. $2,000,000,000 to the total in 1919.

In what we have said above we have had reference to
the totals of clearings for the full calendar year. In the
following two tables we show the monthly comparisons
arranged in quarterly and half-yearly periods, and we give
the figures for New York separate from those for the rest of
the country, and also show the totals for the whole country
with New York included:
MONTHLY CLEARINGS.
Clearings. Total AU.

Clearings Outside New York.

Month.
1932.

1931.

%

1932.

1931.

%

$
$
$
$
Jan_ _ 26,458,772,081 39,844,104.252 -33.3 9.774,437,952 14,343,644,075 -31.8
Feb.__ 21,342.236,850 32,913,175,299 -35.2 8,123,710,922 11,889,901,707 -30.5
Mar.. 24,494,570,735 39,273,003,285 -37.6 8,885.126,375 13,104,618,303 -32.2
1st MI. 72,295,579,466 111830282,836 -35.4 26,783,275,249 39,138,164,085 -31.6
Apr-- 22,836,534,960 39.821,067,051 -42.6 8,867,712,867 13,440,258,887 -34.0
May-. 20.678,879,92437,850,185,100 -45.4 7,937,611,145 12,906,576,307 -38.5
June_ 21,928.703.541 39,219,956,597 -44.1 8,024,841,640 13,159,745,475 -39.0
23 00. 65.440,123,425 116891208,838 -44.0 24,830,185,652 39,506,580,689-37.1
6 moo. 137735702,891 228721491,674 -39.8 57,613,440,901 78.584.744,764-34.4
July -- 19,299,590,338 34,739,548,783 -44.4 7,824.327,050 12,813,916,137 -40.5
Aug -- 20,011,704,221 29,248,439,353 -31.6 7,344,721,332 11,207,266,481 -34.5
Sept.. 20,608.007,943 31,090,835,845 -33.7 7,329,147,565 11,424,921,430 -35.8
3d en_ 59,919,302,502 95,076,823,981 -37.0 22,298.195,947 35,446,104,048 -37.1

385
MONTHLY CLEARINGS AT NEW YORK.

Month.

1932.

•

Oct.-- 20,009,230,305 32,824,389,749 -38.7 7.749.217,611 11,911,290.839 -34.9
Nov - 18,117,720,593 24,109,446,991 -24.9 7,215,904,734 9,658.043.587-25.3
20,962,535,702 29,036,337.525 -27.8 7,729.289,017 10,837.912.674 -27.3
4th qu 59,089,486,600 85,770.174,285 -31.1 22,694,391,362 32.207,247,160 -29.5
4
12 mos 256744491,993 409588 489,920 -37.3 98,606,023,210 148298 095,982 -34.0




1929.

1930.

$
$
$
8
%
January. 16,684,334,129 25,300,460,177 -34.1 32,031,304,550 43.903.665,870
Feb_ ___ 13,218,525,728 21,223,273,592 -37.7 25,987,648,907 35,929,758.330
March__ 15,609,444,360 26,168,384,982 -10.3 33,765,058,127 42,318,838,678
lst quar. 45,512,304,217 72,892,118.751 -37.4 91,784,011.584 122.152,262,878
April__ 13,968,822,093 26,380.808,164 -47.1 33,536.138,532 34.997,553,404
May _ __ 12,739,268,779 24,943,608,883 -48.9 31,428,917,920 36.781,939,592
June--- 13,901,886,901 28.060,211,122 -46.7 33.148,720.338 34,560,646.138
2d guar_ 40,609,957,773 77,384,828,169 -47.5 98.113,778,790 106,340,139.134
6 mos.. 86,122,261,990 150,076.746,920 -42.6 189,897,788,374 228,492,402,012
July__ 11,675,263,288 21.925,632,646 -46.8 29.788,224,369 40,207,748,959
August - 12,666,982,889 18,039,172.872 -29.8 24,005,968,224 39,199,224,609
Sept-- 13.278,880,378 19.665,914,41. -32.5 25,409,711,996 38,952,961.889
3d guar_ 37,621,106.555 59,830.719,933 -36.9 79,183.904,589 118.359,935,237
9 moo.. 123,743,368,545 209,707,466,853 -41.0 269,081,692,963 348.852,337.249
October. 12,260,012,694 20,713,098,910 -40.9 28,883,958,922 54,200.118,901
Nov____ 10,901,815,859 14.451,403,344 -24.8 22,183,294,985 43,089,703,238
Dec__ 13,233,286,685 18,398,424,851 -28.1 26,960,581.250 33,100,122,773
4th guar 36,395,095,238 53,582,927,105 -32.1 78.027.835,157 130,389,944,912
Year.__ 160,138,463.783 263.270,393,958 -39.2 347.109,528.120 477.242,282.161

As was the case in 1931 and 1930, these records for 1932
bear out what has already been said as to the uninterrupted
character of the shrinkage in these records of bank exchanges,
month after month during 1932 in an entirely unbroken
series. Whether we take the clearings with or without New
York, or at New York by itself, there is a decrease in all the
different months, and a big decrease, too, in all cases.
Of course speculation in all the years since 1929 has been
declining and naturally this played an important part in
diminishing bank clearings. To show the falling off in
Stock Exchange speculation and as a matter of fact to present
a record of the transactions on the New York Stock Exchange
for each month of the last five years we now introduce the
table below:
SALES OF STOCKS ON THE NEW YORK STOCK EXCHANGE.
1932.

1931.

1930.

1929.

1928.

No. Shares, No. Shares. No. Shares No. Shares, No. Shares.
34,362,383 42,503,382 62,303,290 110.805.940 56,919.395
Month of January
February. 31,716,267 64.181,836 67,834.100 77.968,730 47.009,070
March____ 33.031,499 65,658.034 96,552,040 105.661.570 84,973.869
Total first quarter
Monthof April
May
June

99,110,149 172,343.252 226,694,430 294,436.240 188.902,334
31,470,916 54,348.836 111,041,000 82.600,470 80,478.835
23,136,913 46.659.525 78,340,030 91.283,550 82,398,724
23,000,594 58.643,847 76.593,250 69.546.040 63.886,110

Total second quite_ 77,608,423 159,650,208 265,974,280 243,430,060 226.763,869
Tots slx months

176,718,572 331.993,480 492.668,710 537,866.300 415.886.003

23,057,334 33,545,650 47,746.090 93,378.690 39,197,238
Month of July
August _ _ 82,625,795 24,828,500 39.369.500 95,704,890 67.191.023
September 67,381,004 51,040.168 53.545,145 100.0513.120 90,578.701
Total third quarter 173,064,133 109,414,318 141,160,735 289,139.700 196.966.962
Total nine month 349,782,705 441,907,778 633,829,445 827.006.000 612,632,985
29,201,959 47.896,533 65,497.479 141.668,410 98,831,435
Month of October
November 23,054,483 37,355,208 51.946,840 72.455,420 115,360,075
December_ 23,189,747 50,158,818 58,769,397 83,861,660 92.837.350
Total fourth quar. 75,946,189 135,410,559 176,208.718 297,985.490 307,028.860
Tot,second slx moe 248,510,322 244,824,877 317.389,451 587.125.190 503.995.822
Total full year... 428 228 1104 876.818.437 810.038.161 11241191 490 Pit).1181.g28

For the year as a whole, the sales on the New York Stock
Exchange during 1932 aggregated only 425,228,894 shares
in 1932 against 576,818,437 shares in 1931, 810,038,161
shares in 1930 and 1,124,991,490 shares in 1929. The
flare of activity which occurred in August and September,
but was not maintained thereafter, is also revealed, these
having been the only months of 1932 which recorded a
larger volume of trading than the corresponding months of
1931. In the table we now present we show the aggregate
of the sales on the New York Stock Exchange for each year
back to 1880.
NUMBER OF SHARES SOLD AT THE. NEW YORK STOCK EXCHANGE
BY CALENDAR YFARS
PS
Cal.
Year.

vocks.
Shares.

1932 _ _ 425,228,894
1931 _ _ 576,818,437
1930 _ _ 810,033,181
1029.. 1124,991,490
1928 _ _ 919,661,825
1927.. 576,563,218
1926._ 450,845,256
1925.. 454,404,803
1924 _ _ 281,931,597
1923 _ _ 236,115,320
1922.. 258,652,519
1921 _ _ 172,712,716
1920- 226,640,400

Cal.
Yea,,

Stocks,
Shares.

1919.. 316,787,725
1918.. 144,118.469
1917.. 185,628.948
1916 __ 233.311.993
1915 ... 173,145.203
1914... 47.900,568
1913.. 83.470.693
1912 __ 131.123.425
1911.. 127.208,258
1910.. 164.051.061
1909... 214.632,194
1908.. 197.206.346
1907 __ 196,438,824
Iona

9 moo. 197655005,393 323798 315,655 -39.0 73,911,636,848 114090898,802-35.2

Inc. or
Dec.

1931.

Cal.
Year.

Stocks.
Shares.

905 __ 263,081,156
904 __ 187.312.065
903.. 161.102.101
902... 188,503,403
901 __ 265.944.659
900.. 138,380.184
809.. 176.421.135
898 _ 112.699.957
897 -- 77.324.172
896 __ 54,654,096
895_ 66,583,232
894.. 49,075.032
893 __ 80.977.839

Cal.
Year.

Stocks,
Shares.

1392 __ 85.875,092
1891.. 69.031.689
1890.. 71,282,885
1889,. 72,014.000
1888.. 65,179.106
1887 __ 84.914.616
1886.. 100,802,050
1885 ... 92.533.947
1884... 98,154,971
1883 _ _ 97,049,909
1882 __ 116.307,271
1831 __ 114,511.248
1880 ... 97.219,099

OfIdoos Ain

It deserves to be noted that while dealings in stocks were
so heavily reduced, dealings in bonds after only a moderate
falling offjn 1930, as compared with 1929, actually increased
somewhat in 1931 and pretty well maintained the increase
in 1932. However this was due to the greater volume of

386

Financial Chronicle

trading in U. S. Government securities which appreciated
in value while ordinary bonds suffered depreciation no less
than stocks and in not a few instances registered even larger
declines. Our compilations show that dealings in U. S.
Government issues reached an aggregate of $569,922,850
in 1932 against $296,117,550 in 1931, $115,785,250 in 1930,
$142,079,800 in 1929 and 8187,634,250 in 1928. Sales
of railroad and miscellaneous bonds, on the other hand,
footed up only $1,641,629,250 in 1932 against $1,846,035,700
in 1931, $1,927,021,400 in 1930 and $2,182,392,300 in 1929.
Including United States issues and the foreign Government
issues, as well as the different corporate issues, the total par
value of bonds of all description dealt in during 1932 was
$2,966,684,700 against $3,050,608,850 in 1931, $2,763,567,550 in 1930, $2,982,299,200 in 1929 and $2,903,434,325 in
1928 as will be seen by the following:
SALES OF STOCKS AND BONDS ON NEW YORK STOCK EXCHANGE.
1932.

DataInflow.
Block-Number of shares

1931.

425,221,94

Railroad and m183.11anewits nouds
United States Government bonds
State. foreign. Ac.. hoods
•Th..., ..a,..ol.....I ...n....

1930.

576,818,437

810,038,161

31,641.629,250 $1,846,035,700 $1,927,021,400
569,922,850
296,117,550
115.785,250
755,132,600
908,455,600
720.760,900
ft9 OAR ARA ,nn VI

ntn ens 3,
41 32 752 657 33/1

Jan. 21. 1933

In treating of stock speculation at New York it is not
possible to ignore the dealings on the New York Curb Exchange where the business involves a very extensive body
of other stocks and bonds; here the shrinkage has been proportionately even larger than in the case of business on the
New York Stock Exchange. On the Curb Exchange sales for
the 12 months of 1932 aggregated only 56,975,777 shares
against 110,349,385 shares in 1931, 222,286,725 shares in
1930 and 477,278,229 shares in 1929. In the following we
compare the transactions on the New York Curb Exchange
for a series of years past.
TRANSACTIONS ON NEW YORE cuRR EXCHANGE FOR CALENDAR
1932_ __shares
1931
1930
1929
1928
1927

Stocks.
56,975,777
110,349,385
222,286.725
477,278,229
221,171,781
125.116.568

YEARS.
Bonds.
Stocks
Bonds.
$952,630,100 1926 _sit_ _aret 115,531,800 525,810,000
979,895,0001925
38,406,350 5500,533,000
863,568,000 1924
72,243,900 200,315,000
554,874,500 1923
50,968,630
90,793,000
833,056,000 1922
21,741,230
55,212,000
575,472.000 1921
15,522,415
25.510,000

Turning now to the records of clearings, classified according to Federal Reserve Districts, the main point to attract
attention is again the common decrease shown by all the
different Reserve districts; the heaviest further declines in
1932 having been at New York (38.9%) and at Boston
(41.0%) as will be seen by the following table:

SUMMARY OF BANE CLEARINGS.
Federal Reserve
Districts.

No.
Cities.
--

1932.

Inc. or
Dec.

1931.

$
$
12.210,020,534 20,712,338,670
14
151 Boston
13 165.148,310,089 270,170,414,617
2nd New York
14,889.441,391 21,079,719,290
14
3rd Philadelphia_
10,237,489,679 15,753,157,856
13
4th Cleveland.....
5,507,126,297 7,332,845,298
9
5t0 Monti:Lind _...
4,555,033,788 6,350,511,970
16
6th Atlanta
17,301,178,671 30,443,706,642
27 •
70 Chicago
4,633.424,261 6,506,155,423
7
3th St. Louis
13
3,694,211,987 4,912,275,129
9th Minneapills- 14
6,184,439,239 8,754,834,077
10th Kansas City_ _ _
10
3,150,573,103 4,305,930,032
Ilth Dallas ______
22
9,225.192,919 13,241,600,916
12th San Francisco
-172 258,744,491,993 409.568.489,920
Total
__
98,605,028,210 148,298,095,962
Outside N. Y. City.
Canada

32

I 19

ono aux Ann 15 543 377 343

1930.
1
1929.
1928
1927.
1926.
1925.
$
%
$
$
$
$
$
-41.0 25,914,935,994 31,158,917,523 29,134.572.808 29,608,240,825 28,182.070,347
-38.9 355.520.907.309487,551,440,643 400.416.198.002 329,460,401,556 298,325,474,068 25,525,891,741
291,123.385.917
-29.4 28,151,933,548, 33,989.427,506 31.554.665,027 30,564,388,289 31,434,818.164
-35.0 21,145,822.948 24,535,091,978 22.728.442,163 22.012,742,276 21,582,647,725 31,761,036,881
-24.9 9,076,063.317 9,834,565.649 9.785.185.874 10,335,542.052 10,901,020,215 20,822,673,742
10,980,309,435
-28.1 8,158,611,278 10,118,234.208 10.114,722.180 11,108,531.915
-43.2 43,810,366,289 56,270,138,889 56.385.204.739 52.677.335,684 12,456,123,556 13,477,069,522
51,641,391,122 51,302,734.279
-28.8 9,396,708,727 11,787.219,456 11.932,994.630 11,757.013,950
-24.8 6,135,244.372 7,268,782,624 7.178.775,087 6.751,071.502 11.894,757,283 11,868,632,259
-29.4 12,011,213,880 15,592,440,205 15,290,803,666 14,802.520.305 6,765.505,827 7.161,324,018
14,873.742.285 14.500,816,244
-26.8 5.344,350,252 6,951,359,197 6,633,537.743 8,558,572,517
-30.3 17,482,397.665 31,827,014,769 32,717,053,551 29,472.714,999 6,812,696,906 8,571.295,884
28,903,424,957 27,121,635,413
-37.3 542,243,060.904726.884.632,647 633,872,155,470 555,109.075,670
523,773.772,455 512,215 805,135
-34.0 195,133,532,784 249.642,350,486 242.144.679.206 233,874,862.009
233,418,828,972 228.596:5
6 0,498
-'254 20004000R00 25.045 7R4 R:4R 9$ KRA 935I .
,4n 90 AAA AM AAA 1, AAA n41

It seems desirable also to have again the record for the
leading cities for a long series of years. Accordingly we
Insert here, as on former occasions, the following table,
carrying the comparisons back for nine years.
CLEARINGS AT LEADING CITIES.
(000,0004
omitted.)

1932. I 1931. ! 1930. 1929. I 1928. I 1927.
$IS!S , S,S

1928.

1925.

1924.

New York_ 1160 138 263,270347.190477,242 391,727 321,234 290,354283,819249,868
Chicago_ _ _ 10,937 19.201 28.707 36,71437,842 35,958 34,9071
Boston- 10,554 18,373 23,070 27,610 25,829 25,468 25,130 22,482 21,323
Philadelphia 13,970 19.701 26.360 31,837 29,377 26,354 29,258 29,079 25.645
St. Louis__ 3,070 4,588 6,146 7.278 7,566 7.387 7,632 7,627 7,175
Pittsburgh
4,160 6,856 9,240 10,163 9,453 9,289 9,198 8.857 8,037
San Fran__ 5,054 7,142 9,559 10.038 11,491 10,118 9,800 9,479 8.366
Baltimore__ 2,893 3,852 4,820 5,287 5,260 5,618 5,974 5,832 5,025
Cincinnati. 2,039 2,838 3,203 3.911 3,901 3,877 3,885 3,710 3,353
Kansas City 3,186 4,400 6,302 7.451 7,254 7,245 7,302 7,036 6,582
Cleveland__ 3,344 5,123 6,638 7,964 6,913 6.457 6,179 5,997 5,441
1,362 2,010 2,315 2,734 2,908 3,056 3,085 3,170 2,986
N. Orleans_
Minneapolis 2,438 3,172 4.016 4,705 4,420 4,095 4,110 4,463 4,026
Louisville__
911 1,134 1,850 1,941 1,936 1,880 1,782 1,744 1,612
Detroit_ 3,236 6,167, 8,440 11,558 10,434 8.770 8,813 8,431 7,358
Milwaukee774 1,1571 1,4871 1,825 2,158 2,246 2,200 2,062 1,912
10,066 10,826 9,382 8,917 7,945 7,915
a
Los Angeles
a
a
Providence_
714
574
729
428
814
876
718
684,
622
Omaha....1,102 1,7251 2,183, 2,398 2,312 2,102 2.104 2,188 2,004
Buffalo._. 1,294 1,930 2.5941 3.396 2,853 2,736 2,727 2,782 2,310
768 1.016 1,200 1,438 1,826 1.556 1,617 1,631 1,618
St. Paul...
Indianapolis
850 1.092 1,286 1,208 1,208 1,192
630
904
985
960 1,295 1,694 1,861 1,864 1.733 1.689 1.668 1.611
Denver....
Richmond
1,389 1,749 2.287 2,333 2,320 2,517 2,610 2,839 2,853
1,240 1,173 1,192 1,197 1,233 1,114
9
660
551
Memphis..
2,654 2,543 2,387 2,353 2,205 2,039
Seattle- - 1,141 1,563 1,99
7i
Hartford...
1,035
589
832
424
904
801
763
654
91
71
490
1,035
924
954,
Salt L. City
922
898
805
Total__ 237,273381.450505.634678,731 587,866 509,330476,452 466,154414,170
19.471 28.118 36,60 48.154 46,493 45.780 47,321 46.062j 41,589
Other
Total all- 256,744 4(19.588 542,24 728,885633,872555,110523,773512,216455,759
OutsideN.Y 96,606 148.29 195,133249,642 242,144 233,876 233,419 228,597 205,891
Will no longer report clearing..

With reference to the dealings at the different Stock
Exchanges we have already commented on the share and
bond transactions on the New York Stock Exchange and
have also given the totals for the New York Curb Exchange.
At the outside Stock Exchanges dealings were everywhere
smaller in 1932 than in 1931 even as they were smaller in
1931 than in 1930 and in 1930 than in 1929 at all points.
On the Chicago Stock Exchange the dealings reached
15,642,000 shares in 1932 as compared with 34,404,200
shares in 1931; 69,747,500 shares in 1930; 82,216,000 shares
in 1929; 38,941,589 shares in 1928; 10,712,850 shares in
1927; 10,253,664 shares in 1926; 14,102,892 shares in 1925;
10,849,173 shares in 1924; 13,337,361 shares in 1923; 9,145,205 shares in 1922; 5,165,972 shares in 1921; 7,367,441
shares in 1920; 7,308,855 shares in 1919; 2,032,392 shares
in. 1918; 1,701,245 shares in 1917; 1,610,417 shares in 1916,
and 715,557 shares in 1915. The total value of bonds sold




aggregated $10,597,000 in 1932 against $12,480,500 in 1931;
827,462,000 in. 1930; $4,975,500 in 1929; $7,534,600 in 1928;
$14,827,950 in 1927; $7,941,300 in 1926; $8,748,300 in 1925;
$22,604,900 in. 1924; $19,954,850 in 1923; $10,028,200 in
1922; $4,170,450 in 1921; $4,652,400 in 1920; $5,672,600
In 1919; $5,305,000 in 1918; ,368,950 in 1917; $11,932,300
in 1916, and $9,316,100 in 1915.
On the Boston Stock Exchange the sales totaled 10,299,500
shares in 1932 against 12,419,793 shares in 1931; 15,251,177
shares in 1930; 24,652,115 shares in 1929; 18,240,330 shares
in 1928; 8,807,874 shares in 1927; 9,562,931 shares in 1926;
9,912,352 shares in 1925; 5,300,862 shares in 1924; 4,783,324
shares in 1923; 5,495,041 shares in 1922; 3,974,005 shares
in 1921; 6,696,423 shares in 1920; 9,235,751 shares in 1919;
3,929,008 shares in 1918; 5,090,982 shares in 1917; 13,078,588
shares in 1916; 12,603,768 shares in 1915; 3,522,187 shares
in 1914; 5,705,588 shares in 1913; 11,134,908 shares in
1912; 7,744,737 shares in 1911; 11,679,572 shares in
1910,
and 15,507,303 shares in 1909. Total value of bonds sold
in 1932 aggregated $1,870,000 against $3,370,800 in 1931;
$5,599,376 in 1930; $11,147,245 in 1929; $8,726,199 in
1928; $7,742,313 in 1927; $7,153,447 in 1926; $8,141,090
in 1925; $15,613,169 in 1924; $20,294,840 in 1923; 828,488,950 in 1922; $16,323,920 in 1921; $24,674,300 in 1920,
and $28,039,700 in 1919.
On the Philadelphia Stock Exchange the dealings in 1932
aggregated 6,592,342 shares against 10,589,837 shares in
1931; 27,234,794 shares in 1930; 35,520,785 shares in 1929;
17,649,062 shares in 1928; 7,959,556 shares in 1927; 10,174,589 shares in 1926; 6,297,878 shares in 1925; 3,434,690 shares
in 1924; 2,319,270 shares in 1923; 2,456,631 shares in 1922;
1,579,470 shares in 1921; 2,367,312 shares in 1920, and
3,230,740 shares in 1919. Bond sales were sharply curtailed
in 1932 and had a value of only $3,948,602 against $11,089,.222 in 1931; $5,882,125 in 1930; $6,057,074 in 1929;
$8,287,827 in 1928; $9,401,361 in 1927; $9,087,564 in 1926;
$14,310,920 in 1925; $44,418,116 in 1924; $42,996,225 in
1923; $30,444,191 in 1922; $53,096,390 in 1921; $31,330,450
in 1920, and $5,635,800 in 1919. In the Baltimore market
350,285 shares of stock were sold in 1932; 504,880 shares in
1931; 712,780 shares in 1930; 1,300,707 shares in 1929;
1,019,056 shares in 1928; 919,365 shares in 1927; 590,730
shares in 1926; 951,426 shares in 1925, and 468,063 shares in
1924. The value of the bond sales was $2,033,700 in 1932
against $3,034,300 in 1931; $6,436,900 in 1930; $7,947,300

Volume

Financial Chronicle

136

in 1929; $9,004,106 in 1928; $12,032,800 in 1927; $7,882,500
in 1926; $9,623,000 in 1925, and $8,246,000 in 1924.
On the Pittsburgh Stock Exchange the sales in 1932 were
1,551,958 shares against 1,625,014 shares in 1931; 3,542,446
shares (not including 446,433 sales of "rights") in 1930;
5,300,096 shares in 1929; 2,013,255 shares in 1928; 1,347,563
shares in 1927; 1,562,769 shares in 1926; 1,778,138 shares
in 1925; 1,372,711 shares in 1924; 2,506,032 shares in 1923;
2,230,146 shares in 1922; 2,630,740 shares in 1921; 4,153,769
shares in 1920; 5,579,055 shares in 1919, and 6,072,300 shares
in 1918. Total value of bonds sold in 1932 aggregated
$43,000 as compared with $100,000 in 1931; $284,000 in
1930; $125,000 in 1929; $187,000 in 1928; $214,000 in 1927;
$168,000 in 1926; $396,500 in 1925; $475,000 in 1924;
$801,350 in 1923; $1,145,150 in 1922; $1,318,950 in 1921;
$2,986,050 in 1920, and $4,069,800 in 1919.
At the St. Louis Stock Exchange transactions aggregated
165,041 2-3 shares, valued at $3,182,725 in 1932, against
380,354 shares, valued at $11,032,467 in 1931; 548,800
shares, valued at $19,560,938, in 1930; 1,304,229 shares,
valued at $60,028,711, in 1929; 1,077,984 shares, valued at
$58,959,638.40, in 1928; 500,601 shares, valued at $25,451,565.28, in 1927; 382,839 shares, valued at $17,101,763, in
1926; 591,667 shares, valued at $32,087,323, in 1925, and
139,482 shares, with a value of $12,193,180, in 1924. Bond
sales were $194,500 par value in 1932 against $590,212 par
value in 1931; $1,730,224 par value in 1930; $1,838,556
par value in 1929; $2,365,928 par value in 1928; $3,840,360
par value in 1927; $2,325,000 par value in 1926; $2,355,200
in 1925, and $2,424,100 in 1924.
At Cleveland the transactions in stocks aggregated 407,463
shares in 1932 against 519,460 shares in 1931; 779,056 shares
in 1930; 2,007,110 shares in 1929; 2,117,549 shares in 1928;
1,263,708 shares in 1927; 1,035,383 shares in 1926; 1,859,390
shares in 1925; 736,976 shares in 1924; ?46,055 shares in
1923; 833,957 shares in 1922; 843,644 shares in 1921; 943,257
shares in 1920; 725,970 shares in 1919; 176,463 shares in
1918; 329,478 shares in 1917; 399,507 shares in 1916, and
88,065 shares in 1915.
Dealings on the Detroit Stock Exchange in 1932 aggregated
2,775,956 shares against 3,843,225 shares in 1931; 5,065,720
shares in 1930; 11,434,665 shares in 1929, and 10,227,019
shares in 1928. Trading had previously kept dwindling
because of the discontinuance of dealings in unlisted stocks
in October 1925. In 1927 the aggregate of dealings in listed
stocks was 2,786,915 shares, and in 1926, 1,852,451 shares.
This compares with 3,264,164 shares of listed and unlisted
stocks combined in 1925 and 2,485,894 shares combined in
1924.
On the San Francisco Stock Exchange the sales of listed
and unlisted stocks during the year 1932 amounted to 7,058,715 shares, having a value of $77,379,642, against
9,875,057 shares, having a value of $160,870,689, in 1931;
15,263,133 shares, having a value of $434,911,735, in
1930; 19,188,822 shares, having a value of $889,697,434,
in 1929; 31,530,016 shares, having a value of $2,066,781,634,
in 1928; 15,552,507 shares, having a value of $653,521,804,in
1927; 8,611,169 shares, having a value of $344,925,947,
in 1926; 9,272,598 shares, with a value of 4267,653,230, in
1925, and 6,848,625 shares, valued at $102,778,333, in 1924.
Bond sales at this exchange were $1,530,000 in 1932 against
$2,381,000 in 1931; $2,457,500 in 1930; $3,384,500 in 1929;
$2,857,000 in 1928; $4,947,000 in 1927; $13,027,500 in
1926; $25,971,500 in 1925, and $38,426,000 in 1921. For
the Los Angeles Stock Exchange the dealings are reported
at 3,068,749 shares, valued at $44,964,720, in 1932, as
against 5,450,543 shares, valued at $93,344,696, in 1931;
9,171,442 shares, valued at $247,673,930 in 1930; 15 406,993 shares, valued at $458,514,236, in 1929; 49,403,086

387

shares, valued at $840,384,806, in 1928; 27,082,349 shares,
valued at $242,272,278,in 1927; 44,067,288 shares, valued at
$184,727,444, in 1926; 36,230,111 shares, valued at $88,955,330, in 1925, and 24,131,544 shares, valued at $38,585,898 in 1924. The bond sales are reported at $148,000 for
1932 against $623,500 for 1931; $2,800,500 for 1930;$779,500
for 1929; $11,351,500 for 1928; $10,707,000 for 1927;
$18,392,900 for 1926; $33,243,300 for 1925, and $26,513,400
for 1924.
Stock dealings on the Canadian stock exchanges were
likewise heavily reduced in 1932 as compared with 1931. On
the Montreal Stock Exchange stock sales of listed shares for
the 12 months of 1932 were 2,897,388 shares as compared
with 5,264,818 shares during 1931; 11,047,472 shares during
1930; 23,203,463 shares during 1929; 18,990,039 shares
during 1928; 9,992,627 shares during 1927; 6,751,570 shares
in 1926; 4,316,626 shares in 1925; 2,686,603 shares in 1924;
2,091,002 shares in 1923; 2,910,878 shares in 1922; 2,068,613
shares in 1921; 4,177,962 shares in 1920, and 3,865,683 shares
in 1919. The bond sales in Montreal were ,598,192 in
1932 against $6,611,580 in 1931; $11,023,025 in 1930;
$13,212,555 in 1929; $20,139,200 in 1928; $16,077,600 in
1927; $17,807,921 in 1926; $17,715,503 in 1925; 822,153,753
in 1924; 838,003,500 in 1923; $48,519,402 in 1922; $67,776,342 in 1921; $27,340,080 in 1920, and $71,681,901 in
1919. On the Toronto Stock Exchange the stock sales
totaled 3,238,478 shares in 1932 against 2,973,358 shares in
1931; 6,638,594 shares in 1930; 10,471,819 shares in 1929;
5,916,923 shares in 1928; 4,663,042 shares in 1927; 2,470,167
shares in 1926; 1,999,218 shares in 1925; 907,871 shares in
1924; 1,025,923 shares in 1923; 1,214,543 shares in 1922;
548,017 shares in 1921, and 670,064 shares in 1920.
As to the Canadian bank clearings their record runs parallel
to that of the bank clearings in the United States just as
was the case in the previous two years. There is this difference, however, namely that in both years the ratios of
decline are smaller than in the case of clearings in the United
States taken as a whole. The grand aggregate of the Dominion clearings for 1932 are down to $12,909,613,409, which
compares with $16,843,377,545 in 1931, with $20,094,909,690
in 1930, $25,085,039,125 in 1929 and with $24,556,298,549
in the 12 months of 1928 and 820,566,490,856 in the calendar
year 1927. Out of the 32 Canadian cities contributing
returns not a single one failed to show a decrease in either
1932, 1931 or 1930. In the Canadian total of clearings by
quarter year periods in the table below it will be noticed
that the final quarter had already suffered a decrease in
1929, the amount having fallen from $7,171,369,336 in
1928 to $6,857,231,902 in 1929; for 1930 there was a further
drop to $5,164,057,073; for 1931, a shrinkage to $4,256,846,075, and now for 1932 a fall to $3,367,617,474.
CLEARINGS IN THE DOMINION OF CAN4De
Clearings
Reported

First
<Nana

Second
Quarter.

Third
Quarter.

Fourth
Quarter

Total
Year.

$
$
$
$
$
3,103,494,918 3,189.615,159 3,248,885,858 3,367.617,474 12,909,613,409
1932
4,148,010,920 4,632,082,461 3,806,438,089 4,258,846,075 16,843,377,545
1931
4962.120.236 5,207,727,374 4,791,115,007 5,164,057,073 20,094,909.690
1930
6,016,432.641 6,041,113.661 6,170.260.921 6,857.231.902 25.085.039,125
1929
5,540.519,953 6,224.576,655 5,619,332.605 7,171.369.336 24.556,298.549
1928
1927._ _. 1.321.149.201 4,910.336.761 4.737.798.279 4 591.208.610 20.566490.866
1926-----3.929.891.000 4,388,475.000 4.217.059.000 8.111.536,000 17.646.961.000
1925-----3.708.304.000 3,854.678.000 3.904.277.000 5.263,984.000 16,731.243.000
3,834,897,000 3.950,010,000 4.072.622.000 5.120.395.000 16,977.924,000
1924. __
1923-----3,606.308.000 4,158.184.000 3.864.938.000 5,702.913.000 17,332,342.000
3,840,001.000 4.031.429,000 3.706,793,000 4.685.582.000 16.263,805.000
1922___
1921
4.127.525.000 4.447.088.000 3.983,965.000 4.886.142.000 17.444.720.000
1920
4,638.357.000 4,924.428,000 4.819.806.000 5.849.805.000 20.232.406.000
1919
3.329.475.000 3,970,863.000 4.127.237,000 5.275.350.000 i6.702.925.000
1918____ 2.818,417.000 3.387,131.000 3.212.600.000 4.300.425.000 13.718,573.000
1917.-- 2,657.205.000 3.363.807.000 2.923.735.000 3,611.971.000 12.666.718.000
1012
0 120 010 M. 1 Al 10 420 f100 0 420 212 022 002* 222 /1011 10.5011
699.000

To complete our analysis we now give the complete statement of the clearings at the different cities in the United
States for the last eight years, classified according to Federal
Reserve districts, and also the ratios of increase or decrease
as between 1932 and 1931. The Canadian bank clearings
in detail for the last eight years are added to the extreme
end of the compilations:

BANK CLEARINGS IN DETAIL FOR THE LAST EIGHT CALENDAR
YEARS ACCORDING TO FEDERAL
RESERVE DISTRICTS.
Clearings atFirst Federal Reserve D
Malne-Bangor
Portland
Massaektisetta--Iloston____
Fall River
Holyoke
Lowell
New Bedford
Springfield
Worcester
_
Connecticut-Hartford
New Haven
Waterbury
Rhode ialand-ProvIdenoe_
N. El.-Manehester
Total (14 °Mein




Year 1932

Year 1931.

$
$
*strict- Bosto n21,735,216
30,871,677
112,486,341
157.470.412
10,553,707,435 18.373,439,759
35,521,668
48,965,338
20,442,820
26,973.066
14,579,419
24,476,328
31,131,456
46,114,827
160,313,913
225,083,803
86.367,097
145.679,693
423,792,173
589.290,196
241,624,712
347,367.091
66,581,600
92,233.400
428.493.500
573,896,200
23,243,184
30,476,880

Inc. or
Dec.

Year 1930.

Year 1929.

Year 1928.

%

$

$

$

Year 1927.
$

Year 1926.
$

Year 1926.

11
-29.6
34.873,633
35,894,326
42,555.464
35,536,067
38.033.888
39,196.076
-28.6
197.868,116
202.544.646
192.468.223
229,868,588
174.371.073
197,891,247
-42.6 23.080,468.729 27,600,034,885 25.828,975.499 26.468.065.274 26.130.344.097 22.481.915.310
-72.5
57,280,304
70,549,077
107.131.493
85,578.004
121.230,152
103.832.149
-24.2
30.299,066
45.041.238
46.683,818
35,209.151
33,430.307
49.337.294
-40.4
38,136,771
62,880,710
56.863.614
63,500,525
65,441,362
60,639.419
-32.5
65.623.291
58.428.583
53,088,956
68.898.612
68,951,283
79,943,697
-28.8
243,701,444
283.174.997
296,082.026
299.931.604
297,921,246
303.889,872
-40.7
174.694,717
187,941,048
190.236,622
186.433,169
96.246.099
194.635.139
-28.1
768.282,463 1,035,442,166
832,271.077
903,867.710
800.645.811
763.288.763
-34
401,300,6&S
412,492.500
454.489,802
468,600.000
373.982,839
370,464.451
-38.7
111,115.600
131.318,200
133,611.000
139,691.400
125.216,500
129.137.900
-25.3
683.796,100
813,885,600
729,416.100
876,117,400
714.045.000
717.576.500
-23.7
40,029,420
37.478.703
40,088.643
39.390.670
41,367.963
41.428,285
12,210,020.534 20.712.338,670 -41.0 25.914.935.994 31188917525 29.134.573.808 29.808.240.025 28.182
070 347 26 525 Rol 721

Financial Chronicle

388

Jan. 21 1933

BANK CLEARINGS IN DETAIL FOR THE LAST EIGHT CALENDAR YEARS ACCORDING TO FEDERAL
RESERVE DISTRICTS-(Continued).
Clearings at-

Year 1932.

Year 1931.

$
$
Second Federal Reserve District-New York269,461,242
325,552,925
New York-Albany
Binghamton
42,310,615
56,384,503
1,294,195,734 1,929.918,055
Buffalo
50,753,092
Elmira
36,458,351
Jamestown
45,134,008
29,194,920
New York
160,138,463,783 263,270,393,958
Niagara Falls
a
a
360,161,965
494,981,674
Rochester
248,170.737
Syracuse
191,618,716
170,732,540
Connecticut-Stamford_ _
131,936,253
27,849,237
36,619,217
New Jersey-Montclair_
1.100,022,410 1,541,778,681
Newark
_
Northern New Jersey
1,463,517,273 1.918,084,694
81,910,533
61,119,570
Oranges
Total (13 cities)

$

Year 1927.
$

Year 1926.

Year 1925.

$

$

331,980,049
-17.2
353,497,666
339.980,431
332,232,568
322,865,780
338,712,898
78,010,459
71,452,235
-25.0
70.199,795
60,305,169
59,325,542
66,019.910
-32.9 2,604,443,330 3,395,939.862 2,849,617,173 2,735,746,437 2,726,662,610 2,781.546,912
-28.2
59,094,042
58.298,891
51,364,283
53,208,693
49,071,454
53,788,254
71,092,338
-35.3
61,741,471
69,884.650
77,093.639
77,417,838
73,230.583
-39.2 347,109,528,120 477,242.282,161 391,727,476,264 321,234,213,661 290,354,943,483 283,619,244,837
a
a
78,778,486
83,203,418
66,051,202
55,359,559
54,933,844
850,955,176
599,571,946
776,900.082
729,305,528
684,858,080
-27.2
667,924,306
384,869,476
338,123,241
-22.8
290,261,978
346,594.405
319,368.064
301,561,843
208,474,112
240,409,568
215,061.704
200,103,084
188,037,428
-22.7
183 262,196
50,227,722
-23.9
47,157,825
42,494,630
41,073,525
46,047,766
3,1,100,200
-28.6 1,790,926,944 1,873,545,343 1,520,154,962 1,374,097,957 1,309,996,214 1,129,083,897
-23.7 2,250,855,686 2,797,244,114 2,221,489,574 2,139.849,263 2,036,418,567 1,762,919,810
-25.4
87,766,388
78,015,034
88,788,453
97,011,847
80.958,890
69,760,864

84,490,339
-44.3
78,710,687
80,669,927
68,868,072
86,818,244
78,352,550
276,486,497
238,163,397
-39.8
245,797,295
246.606,709
225,717,798
217,585,765
-53.5
63,824,255
67,798,586
73,814,118
54,190,321
74,320,524
77,529,200
253,099,487
-29.8
246,312,192
246,128,739
247,771,510
222,550,947
253,681,837
115,838,586
118,782,669
-23.5
108.996,383
111,963,090
100,081,996
115.810,401
33,643,772
-39.2
35,265,231
32,773,481
33,580,050
34,870,724
32,485.324
47,836,493
46,949,014
52,385,945
-31.0
38,811,301
48,945,988
55.109,799
-29.1 26,360,000,000 31,837,000,000 29,371,000,000 28,354,000,000 29,258,000,000 29.079,000,000
219,885,671
225,803.124
221,391.913
-27.7
178,233,147
223,751,703
197,491,250
329,092.841
330,825,930
326.296,868
-42.6
245,741,796
335,876,651
318.740,033
210,527,730
212,591,319
191,824.257
-39.3
178.381,878
206,040,804
208,029,953
97.955,116
96.368,743
-33.0
105,501,365
112,795,414
106.563,636
99.618,300
142,807.716
163,586.890
706,645,894
-36.3
118,145,203
133,901,188
133,294,254
352.521.057
327,539.087
-23.3
281.466,066
342.917,863
320.956,375
220,839,000

-85.7
-26.4
-34.7
-35.8
-38.0
-55.6
-44.3
-38.4
-31.7
-64.2
-37.5
-13.8
-40.2

349,750,000
244,201,000
252,951,681
209,510,783
3,202,938,421 3,910,555,730
6,637,913,338 7,964,234,471
905,967,000
792,932.400
48.898,612
67,249,607
18,490,723
24,346,327
93,261,261
109,509,897
322,937,297
259,844,604
23.384,039
29,492,205
11,361,737
9,358.775
81,102,560
74,753,770
9.246,960,336 10,162,939,978
106,365,138
82,259,046
194,767.150
242,676,240

367,108,000
224.145,594
3,901.292.187
6,913,067,391
893,035.600
60.404.063
22,641.750
102,668.923
305,765.883
37,331,534
13,517,047
77,217,585
9,452,671.780
108,149,087
249,426.939

336.895.000
213.842.119
3.877,324.829
6,457,413.647
922,793.200
47.674,711
22,970,232
101.512,961
289,968.195
37.485,477
15,890,477
74,377,495
9.289,443.577
99.877.333
225.273,023

316,985,000
212.805,852
3,885,182,015
6,178.768.145
880.312,600
49,398,905
23,936,686
108,577,509
278.698,371
39,349,464
19,632,402
74,122,404
9.197,686,606
95,372,164
221,819,602

312,480,000
234,573,321
3,709.095,618
5.996,668,609
802,798,100
45,642,269
26.169,237
103,342,812
271,710,112
38,335,888
17,863,881
80,384,053
8,856,572,090
98,886.981
226,340,773

5,507,126,297

--22.4

63,130,826
247,128,060
2,333,296,114
125,618,965
114,752,998
117.079,295
5,286,948,733
24,775,584
40,444,345
1,481,390,729

64,106,999
274,434,033
2,319,531,349
133,279,700
117.606,167
112,903,990
5,260,041,574
24,584,650
42,589.059
1,435.725,603

7,332,845,298 -24.9

9.076,063,317

9,834,565,649

9,785,185,874 10,335,542.052 10,901,020,215 10,980,309,435

a
143,741,364
1.078,748,051
2,258,286,150
89,214,260
18,242,835
72,467.235
675,293,206
a
88,717,724
1.010,297.655
96,642.806
56,258,519
71,415,000
108,145,650
33.982.638
9,958,037
2,315,469,043

a
160,390,810
1,234,935,792
2,927,843,030
114,504,845
63,214,764
90,958,461
778,230,904
142.316,000
136,395,461
1,277,239,054
109,339,262
88.121,435
85,983,000
111,691,055
45,168,531
17,457,100
2,734,424,704

a
170.009.256
1,179.685.804
2,679,446,196
103,544,775
59,574.007
118,457,221
835,268.613
143,364.000
184,472,445
1,283.850,241
95.104,890
87.188,5E0
90,143,000
108,612,955
45.763,096
22.578,709
2,907.752,752

4,565,083,788

--36.6
--23.7
--21.7
--58.1
--51.4
--56.8
--24.9
--36.1

a
-11.7
-26.7
-23.0
-35.7
-37.1
-33.4
-26.8
a
-27.9
-31.9
-34.8
-32.7
-35.9
-38.4
-24.1
-19.1
-32.2

6,350,511.970 -28.1

68,727,520
308,349.887
2,517.251,589
140,724,518
122.430,598
105.661.217
5.618,191,924
25.616.114
42,691,258
1,385,897.427

79.673,600
438,943,130
2,610.110,000
137,166.758
129,465,413
92,220,790
5,953,736,235
25.429,360
41,693,977
1.398,580,952

56,337.080
213,137,682
2,286,520,865
117,088,662
110,235,165
108,282,902
4,820,464,324
24,658,271
31,730,772
1.317,607,594

Sixth Federal Reserve D istrict-Atlan taa
a
Tennessee-Chattanooga_ _ _
127,219,199
144,145,834
Knoxville
460,439,179
Nashville
628,043.516
1,414,100,000 1,835,666,525
Georgia-Atlanta
43,898.263
68,233,406
Augusta
22,603,056
35,921,053
Columbus
25.902,277
38,868.396
Macon
431,454,575
589.169.980
Florida-Jacksonville
a
a
Miami
53,420,049
74,091,638
Tampa
455,303,130
668,758,940
Alabama-Birmingham _ _
67,631,437
44,098,779
Mobile
24.543,761
36,472.025
Montgomery
35,139.000
54,814,000
MIssissippl-Hattlesburg
72,851,103
44,840,287
Jackson
18,532,290
14,065,389
Meridian
7,230,656
5,851.463
Vicksburg
1,362,194,381 2.010,081,171
Louisiana-New Orleans_ _ _
Total (16 cities)

Year 1928.

$

10,237,489,679 15,753,157,856 -35.0 21,145,822,948 24,535,091,978 22,728.442,163 22.012,742,276 21,582.647,725 20.822,672,742

Fifth Federal Reserve D istrict-Richm ond19,532,286
West Virginia-Huntington_
30,830,709
136,068,783
Virginia-Norfolk
178.403,799
Richmond
1,369,431,265 1,748,565,339
North Carolina-Raleigh
35,824,898
85.568,908
41,086,457
84,584,416
South Carolina-Charleston
Columbia
43,622,843
101,035,483
2,892,638,534 3,851,615,868
Maryland-Baltimore
12.114,118
Frederick
18,963,990
Hagerstown
956,807,113 1,233,276,777
D. of C.-Washington
Total(9 cities)

Year 1929.

$

14,889,441,391 21,079,719,290 -29.4 28,151,933,548 33,989,427,506 31.564,665,027 30.564,388.289 31,434,918.164 31,761,036.681

Fourth Federal Reserve District-Clev eland20,416,000
142,973,000
Ohio-Akron
anton
2,088,859,937 2,837,577,247
Cincinnati
3,344,466,086 5,123,450,082
Cleveland
602.282,400
386,397,500
Columbus
36.640,370
22,717,180
Hamilton
13,906,676
6,169.896
Lorain
73,516.115
40,929,770
Mansfield
Youngstown
10,225,223
16,603,484
Pa.-Beaver County
4,938,349
7,229,156
Franklin
38,941,357
13,947,659
Greensburg
4,159,834,262 6,655,620,424
Pittsburgh
62,092,335
53,541,288
Kentucky-Lexington
85,046,529
142,325,210
West Virginia-Wheeling_ _ _
T.
./tal (13 cities)

Year 1930.

%

165,146,310.069 270.170,414,617 -38.0 355,520,097,309 487,551,440,643 400,416,198,002 329,460,401,556 298,325,474,068 291,122,385.917

Third Federal Reserve District-Phil adelphiaPennsylvania-Altoona_
_
20,297.762
36,463.654
Bethlehem
25,354,443
42,135,288
Chester
21,215,870
45,621,398
Harrisburg_
119,873,105
170,873,868
119.589,616
Lancaster
91,507,310
Lebanon
17,165.764
28.219,603
Norristown
22,992,290
33,320,866
Philadelphia
13,970,000,000 19,701,000,000
Reading
151,266,900
109,410,166
Scranton
214,088.598
122,899,479
148,081,121
Wilkes-Barre
89,952,506
York
58.915,606
87,995,778
84,837,000
New Jersey-Camden
54,030,000
216,225,600
Trenton
165,827,000
Total (14 cities)

Inc. or
Dec.

427.694,713
171,715,288
1,198,811.102
2,688,483,712
112,844,591
56,220.343
113,724.379
1,002,493,423
260,039,000
237,515,432
1,332.515,451
100.138,512
88.435,870
92,801,751
96,292,358
.51,217,929
21,788.666
3,055.799,395

408.846.266
169,432,729
1.126,611,577
3,055,832,656
109,335,360
55,878,556
98.414.790
1,505,427,663
632.867,020
414.418,178
1,337,643,645
109,203.325
85,733,107
101,220,743
88,596,211
47,121,300
21.823,478
3,084,716,952

84,595,000
434.725.868
2,839,366,382
144.447,129
132.823,778
94.252,877
5,832,393,840
24,216,680
40,209,789
1,353,278,092

373,405,137
162.354,714
1,122,203,951
3,604.290,297
110.907,207
55,946,341
92.439,419
1.446,158.867
1,066,528,874
461,800,170
1.372,382,901
106,497,788
93,706,133
91,157,667
79,106.248
45,737,142
22,873,142
3.160,573,524

8,156,611,273 10,118,234,208 10,114,722,180 11,108,531,915 12,456,123,556 13.477,069,522

Seventh Federal Reserv e District-Ch icago•
12,851,871
13,944,164
14,494.728
8,180,171 -33.6
12,884,211
5.434,981
Michigan-Adrian
10,745,160
14,764,327
59,356,150
50,768,694
55,414,307
30,322,779
41,590,133 -27.1
52,723,702
Ann Arbor
46,278.924
54,821,896
3,236,378,646 6,167.174,197 -47.5 8,440.151,513 11,538,165,403 10,433,524,569 8,770,133.565 8,813,261,202 8,430,707,003
Detroit
150,681,429
203,851.522
180,332,538
61,650,930
108,036,196 -42.9
125,846.805
145,865,362
220,442,316
Flint
431,880.060
446,963.469
412.852,920
143,258,284
226,598,530 -36.8
287.853,084
388,723.194
415,171,313
Grand Rapids
92,142.380
95.234.799
110,562,017
25,038,273
39,554,042 -36.7
Jackson
105,172,135
57,646,083
110.245,863
142.451,107
166.323,466
142,867.854
61,996,273
145,420,362 -57.4
Lansing
175,838,800
203,161,895
140,964,419
153,161.060
175,910,705
158.338,950
105,873,979 -48.9
53,082.771
209,224,323
166,730,598
147,658,263
Indiana-Fort Wayne
322,514,570
309,886,459
267.637,178
298.790.097
77,977,081
174,387,000 -52.3
253.071.064
Gary
296,543,662
629,724,858
852,191,683 -26.1 1.092,108.000 1,286,073,000 1,207.652.198 1,207.528.916 1,191.869,000
Indianapolis
904,278,000
162,609,400
163.442,166
160,969.629
88,575,408 -30.7
59,069,090
135.223,195
166.260,154
South Bend
151,241,800
300.965.151
310.964,697
277,537,067
217,980,321 -26.9
159,418,789
263,191,437
282,846,687
Terre Haute
301,297,487
186,137,234
186,048,289
186.297.553
119,292,200 -58.1
50.010,133
136,958,500
161.114,961
162,735.232
Wisconsin-Madison
773,558.234 1,156,635.380 -33.1 1,487,453,843 1,825,350,991 2.158.202.569 2,248.371.313 2,200,177,699 2,062,451,850
Milwaukee
51,943.192
53.085,295
49,605,198
31,488,526 -33.6
40.009.150
Oshkosh
20,914,981
49,415,900
44,312,208
153,225,584
147.406,458
139,254.664
119.839,034 -70.1
35,846,030
158,788.202
166,327,972
138,901.698
Iowa-Cedar Rapids
538.435.921
620.897,859
510,676,842
543.981,296 -57.7
637,723.686
672,066,653
Davenport
229,848,922
610,259,307
507.721,340
515,292.642
546,115,415
335,156,684 -23.0
439,220,462
527,409,513
257,947,159
572.052,641
Des Moines
25,934,934
26,207,664
25.775,238
24,256,693
25,545,078
22,075,364
Iowa City
324,686,291
360,969,498
336.873,140
202,166,116 -41.0
298,998.273
362.277,589
119,261,277
367.858,973
Sioux City
74,148,880
68.654,559
65,414,012
Waterloo_
c 8,463,026
37.553,768 -77.5
71.518,177
83,909.006
69,689,317
70,444,245
82.120,290
88.742,508
41,727,767 -62.0
53,739.239
66,781,797
Lllinols--Aurura
15,873,582
79,004.498
96,829.609
84,152,299
84.849.481
92.540.349
49,497,539
74,452,752 -33.5
103,365,518
Bloomington
86,680,608
10,936,884,811 19,201,221,287 -43.0 28,707,627,136 36,713,580,962 37,842.393,658 35,958.215.634 34,907,132,946 35,391.593,578
Chicago
69.391,689
70,376,309
69,799,500
27,132,821
62.009,970
66,854.298
45,262.258 -40.1
77,593,249
Decatur
284,704,052
253.540.410
262,806,045
233,987,210
309,660,998
116.547,216
158,019,046 -26.2
240,174,212
Peoria
189,231,847
180,484.298
156,682,125
170,363,037
94,715,140 -63.4
205,308,336
34,675.720
Rockford
148,670,755
143,425.697
136,403,765
147,894,237
133,250,054
144,937,325
81,364.465
111,633,366 -27.1
145,548,018
Springfield
Total (27 cities)

17,301,178,671 30,448,706.642 -43.2 43,810.366,289 56,270,133,889 56,385.204,739 52.677,335,684 51.641,391,122 51,302,734,279

Eighth Federal Reserve District-St.L outsIndiana-Evansville
4.957.063
11.776.615
New Albany
3,069.050,302 4,587,620,932
Missouri-St. Louis
911,287.760 1.134,398,884
Kentucky-Louisville
Owensboro
63,876,121
65,711,500
Paducah
550,523,886
660,399.481
Tennessee-Memphls
a
a
Arkansas-Little Rock
3,274,173
7,603,089
Minols-Jacksonville
40,480.301
27.719,577
Qulney
Total (7 cities)




4,633,424,261

b
-57.9
-33.1
-10.7
b
+2.9
-16.6
a
-56.9
-31.5

6.506.155,423 -28.8

241.354,305
8,858,206
8,146,332.080
1,850,136.498
20,386,427
104.085,592
954,000.029
a
10,567,352
60.986,238

277,018,070
9,538.727
7,278,217,025
1,940,887,905
21,782,580
129,177,974
1,239,779,882
791,641,157
20,773,724
78,402,412

260,206,749
9,164,551
7,566.304,781
1,936.030.886
20,564,267
121,009,600
1,172,927.187
748,244.471
18,994.907
79,547,231

305.203.072
9,822,696
7,387,457,173
1,879,529.149
19,692,702
117,795.779
1.191,854.410
740,952.228
19,932.176
84,774,575

280,656,764
9,789,770
7,631,792,498
1,781,961,052
19,749,879
112,093,719
1,196,581,429
754.627.362
21,557.265
85,897,544

281,939,450
9,030,201
7.628,579,123
1,743,689,890
21,820,590
110,568,863
1,232,818.801
735,856,786
22,230,884
84.091,871

9.396,706,727 11,787,219.456 11,932,994.630 11,757,013,950 11,894.757,283 11,888,832.259

389

Financial Chronicle

Volume 136

BANK CLEARINGS IN DETAIL FOR THE LAST EIGHT CALENDAR YEARS ACCORDING 7
RESERVE DISTRICTS-(Concluded).
Year 1932.

Clearings al-

Year 1931,

Inc. or
Dec.

Year 1930.

Year 1929.

%

$

$

$
3
District-Min neapolls205,222.340
124.249,575
2,437,597,703 3,172.021.285
16.116,042
11,796,474
768,083,755 1,016.105,672
98,629,575
86,620.147
72,206.000
52,052,000
14,096,306
8.930,597
40,694,983
29,701,849
77.531,404
40,379.680
26,844,486
16,863,142
40,200,012
25,693,563
129,487,579
90,079,362
3,119,445
2,164,140

Ninth Federal Reserve
Minnesota-Duluth
Minneapolis
Rochester
St. Paul
North Dakota-Fargo
Grand Forks
Minot
South Dakota-Aberdeen
Sioux Falls
Montana-Billings
Great Falls
Helena
Lewistown

3,694,211.987

Total (13 cities)

6.184,439,289

Total (22 cities)

$

Year 1925.
$

390,823,396
4,705,231,843
32,731,386
1,437,575,407
109,463,285
96,786,000
25,842,392
63,504,526
99,565,044
38,736,025
72,724.161
188,049,416
7,749,743

439,673,409
4,419,614,371
33,204.246
1,626,311,125
103,492.356
72,127,000
22,749,082
72.551,959
86,345.219
38.765.611
69,659,550
184,725,683
9,555.476

465,081,789
4,094,562.453
32,123,424
1,556,483,398
110.360,797
72.139.000
17,801,540
66.757,056
82,668.196
34,521,615
55,408,877
163,967,351
9,216,006

414.865,676
4.110.311,738
28.236.650
1.617.454.198
97,024.377
70.908.000
15,705.910
76.436,736
79,223.998
32.104,577
47,337,663
166.861,271
9.035.033

498.450,286
4,462.950.450
22,880,408
1,631,459,933
85.601.746
74.480,000
13.487.998
77,750,830
61.037,892
32.928,493
40,201.009
152,712.443
7,382,530

4,912,275,129 -24.8

6,135.244,372

7,268.782.624

7,178,775.087

6.751,071.502

6.765.505,827

7.161.324,018

16,296.319
26,305,091
175,817,374
2,183,257,401
109,882,111
170.679.470
366,334,805
47,687,133
6.302.246,728
289,851,742
a
a
487,606,641
61,740,658
1,694,207,214
79,301,193

19,871,632
30.058.874
208,468,855
2,397.776,090
114,549,255
188.162,771
440,197,018
70,482,268
7,451,137,423
361.895,823
a
1,646,089,362
636,799,100
74,753,629
1,861,410,501
90,836,614

20,851,129
20.856,808
28.820,191
24,570,478
246,146,704
254,013,059
2,311,920,165 2,102,408,685
109,011,087
121.216,030
193.908.504
172,613.529
480.707,432
424,562.352
81,691,204
70.680,927
7,254.046,094 7,245,050,814
364.887,906
337.727.941
a
a
1,555,022,655
1,568,022,225
630,886,313
596,642,699
70,177,437
64.167,032
1,863,583.691 • 1,732,674.525
77.153,861
69,302.494

19,738,367
28.008,329
245.980.286
2,103.548.186
213.374,463
179,146.598
435.778.140
93,584.411
7,301,562,157
375,642,241
10.281,364
1,526,008,448
527.417,855
61,750,994
1,688,644.834
63.275.613

22.396,587
32.596,380
254,049,952
2,188,210,683
213.127,476
184.941.687
901,638,512
89,178,302
7,036,471.383
392,705,388
14.727.154
1,443,875,836
436.148.418
63,581.225
1,667,800,725
59,266,536

-38.5
-56.5
-35.9
-36.1
-26.7
-34.0
-22.3
-36.4
-27.6
-34.4
a
a
-24.6
-32.6
-25.9
-41.5

8.754,834,077 -29.4 12,011,213,880 15,592.440,205 15,290.803.666 14,802.520,305 14.873.742,285 14.500,816.244

-43.8
-47.8
-23.4
-40.8
-26.9
-9.4
-27.2
-45.6
a
-47.7
-30.9

76,981,831
96,974,276
2,122,364,049
298.613.604
520,252.889
179.440.290
1,676,248,710
35,361,870
a
100,312.041
237.800.692

97,763.410
113,183,692
2.881,787,579
324,538.201
744,516,447
284,292,000
2,003.863.851
42,640,553
33,302,527
130,005,246
290.465.691

04.312.924
103,414,000
2,783.610.484
295,164,967
729.207.147
308.486.000
1,825,696,257
29,243.695
33,372,049
133,219.435
297,809,785

85,870.973
84.936.476
87.755,313
102,736,000
2,651,392,000 2,518,137,647
252,853,538
254.780.035
743,352.678
656.641,904
598,903,000
440,218,000,
1.872.575.124 1.881,077.054
29.893.340
32.292,812
37.614,237
34.385.522
182,772,225
146,825,000
279,361.853
281,789.584

105,349,233
72,708.101
2,556,829.919
252.882.072
652.152,962
519,951.000
1.765.968.080
26,832,869
42,558,699
170,705.772
276,453.983

4.305,930,032 -26.8

5,344,350.252

6,951,359,197

6,633.536.743

6,558.572.517

6.812,696,906

6,571,295.884

50.040.884
46,641,000
47,274,000
42,524,000
1,997,926,280 2,653,702,788 2,542,920.892 2,366,923,226
677,345,000
704,091,000
663,295,000
569,737,000
60,000,038
87.403,918
81,862,225
77.903,882
72,789,413
75,070,229
67,270.426
63,271,668
21,303.239
26,603,724
25,408,725
26,000,750
1.769.799,112 2,074,370,046 1,985,688,152
1978,932.067
82,968.375
97,404.763
86,612,536
95,237,940
924,051,647
917.786,774 1.035.216,759
953,583,888
a
35,368,955
aa
199,040,000
243,368.000
196,964,000
153,160,900
87.256,303
75.984,675
69,675,323
67,109,144
232,253,785
255,711.123
264.618.148
263,145.486
234.749.359
227,342.851
202,467.913
455,777,616
427,047,254
a'1
-42.7
365.062,994
369.056.937
a
a
10,066,695,000 10.825,705,000 9,381,948,000
20.572,371
49.969,110
45,510.934
50,561,882
30,577,718 -32.7
59.977,580
aa
a
969,103,648
a
a
1,020.614.221
1.046,040,933
a
240,082,60 -33.1
350,763,565
160,692,209
293.876.641
364.472.854
359,077.275
37,658,984
57.372.651
49.565.876
41,590,830 -9.5
60,730.028
54,163,780
400,244,548
323,537,317
354,648,306
389,910,87 -17.0
304.181.830
387,204,230
292,706,408
326,932,602
301,403,758
aa
276,387.907
a
5,053,860.846 7,142.159,35 -29.2 9,558,593,667 10,938,051,445 11.491,219,372 10,117,987,269
148.888.528
83,484.854
132,151,81 -36.8
174,259,262
157.352.616
190,592.930
78,281,207
56,237.798
86.054.117 -34.6
92,052,377
104.427,920
106,813,576
113.320,549
113,842,117
46,204,011
82,058,60 -43.7
101,376,297
102.745,953
26,217,243
27,024,331
a
27,204.797
a
aa
141,554,400
135,736,100
60.161,524
81,320,60 -26.0
108,272,700
135.379,700

48,055.000
2,352,953.405
644,971,000
78.171.284
59.201,417
28,038.489
2,103.840.202
83,084.509
922,163.600
35.923.678
135,689.000
66.884.028
232.803,013
231,399,177
367,054,556
8,917,424,000
46.203.317
1.077,033,672
334.578.791
52.790.322
442.501.119
315,225.056
9,799,768.682
158.055,163
76.943.863
119.396.676
26,406,238
146,867.700

45,254,000
2,205.404,626
606,901,033
82,266,636
57,198.886
27,542.807
2,015,148,908
108,213,000
898.102,610
35,036.112
121.928,000
59.438.319
220.021,829
201.331.828
332.122.723
7.945,493,000
44,958.841
1,063,291.078
310,599,694
42.786.332
450,001,211
269,815.389
9.479.464,458
143.791.357
73.009,035
105.354,048
26,577.953
150.581.700

3.150.573,108

Twelfth Federal Referve
Washington-Bellingham
Seattle
Spokane
Yakima
Idaho-Boise
Oregon-Eugene
Portland
Utah-Cotelen
Salt Lake City
Nevada-Reno
Arizona-Phoenix
California-Bakerstield _ Berkeley
Fresno
Long Beach
Loa Angeles
Modesto
Oakland
Pasadena
Riverside
Sacramento
San Diego
San Francisco
San Jose
Santa Barbara
Santa Monica
Santa Rosa
Stockton

Year 1926.

279.895,777
4,016,265,425
28,948.330
1,200,088,456
102,983,785
83,571,000
20.082.098
53.202.133
99,433,856
33,136,648
54,660.708
158.239.335
4,736,821

Eleventh Federal Reserv e District-Da Ilas74,429.043
Texas-Austin
41,840.979
75,506,339
Beaumont
39.415,845
Dallas
1,381,360,860 1,803.330,859
El Paso
122.988,459
207,711,013
Fort Worth
380,876,507
278,396,143
132,167,000
Galveston
119,756,000
Houston
1,008.516,606 1,385,063,619
Port Arthur
23,383,175
12.726,905
Texarkana
a
a
Wichita Falls_
27,723,000
52,992,000
170,470.477
Louisiana-Shreveport
117,848,311
Total (10 cities)

Ye'n' 1927.

88

-39.5
-23.2
-26.8
-24.4
-12.2
-27.9
-36.6
-27.0
-47.9
-37.2
-36.1
-30.4
-30.6

Tenth Federal Reserve District-Kan ass City12,977,782
7,986,310
Nebraska-Fremont
16,382,735
7,124,156
Hastings
147,152,318
Lincoln
94,300,761
1,102.436,600 1,724,857,290
Omaha
119,217,029
87.338,172
Kansas-Kama City
134,079,333
88,550,152
Topeka
258,977,982
201,101,302
Wichita
25,247,753
16,061,956
Missouri-Joplin
3,185,864,846 4.399.861.852
Kansas City
203,405.836
133.442,013
St. Joseph
a
a
Oklahoma-McAlester
a
a
Oklahoma City
304,545,105
229,531,857
Tulsa
51,016,097
34.377,505
Colorado-Colorado Springs
960,057,247 1,295,070.787
Denver
62,042,178
36,266.412
Pueblo
Total (14 cities)

Year 1928.

FEDERAL

District-San Francisco33,466,194
20,602.540
1,141,237.255 1,563,461,845
466,630,000
285,351,000
42,897.787
22,006,861
67,407.994
42,037,589
15,124,000
6,812.575
895,782,665 1,384,174,312
48,712,606
24,428,708
715.077,670
489,682,538
a
a
156,930,482
99,607,069
35,791,607
48,426,908
162,840,991
200,954,406
a
a
156,156,707
272.436,183

9,225,192,919 13,341,600,91

-38.2
-27.0
-38.8
-46.6
-37.6
-55.0
-35.3
-49.9
-31.5
a
-36.5
-26.1
-19.0

-30.3 17,482,397,665 31,827.014.769 32,717.053,551 29,472,714,999 28,903,424,957 27.121.635.413

Grand total (172 cities) 256,744,491,993I 409,568,489,920 -31.3 542,243,060,904 726.884,632.647 633.872,155,470 555,109,075,670 523.773,772,455 512.215,805.135
I
.
.
.
.
. •,
.
Outs1de New York
.
.
•
,
•
.
.
.

CANADIAN BANK CLEARINGS FOR THE LAST EIGHT CALENDAR YEARS.
Clearings alMontreal
Toronto
Winnipeg
Vancouver
Dttawa
Quebec
Halifax
Hamilton
Calgary
It. John
Victoria
London
Edmonton
Regina
Brandon
Lethbridge
Baskatoon
Moose Jaw
Brantford
Fort William
New Westminster
Medicine Hat
Peterborr ugh
snerorocete
Kitchener
Windsor
Prince Albert
Moncton
Kingston
Chatham
Sarah%
Budbury

Year 1932.

Year 1931.

Inc. or
Dec.

$
3.970.526.109
4,072,710.626
1,970,176.565
636,113.008
227.909.783
210.822,180
115,174,903
190,818,350
258.189,363
85,895,057
70.573,098
127.363,404
194,556,920
177,159.334
17,380.404
17,284.264
73,352,974
28,606,507
39,549,377
28.973.994
23.365,496
9,589,500
30,217,665
28,246.454
43,767.026
117,006.345
14,343,182
35,940,771
27,468,131
22.190,244
20,037,081
24.215.294

$
5,773,473,678
5,134,895,419
2.253.265,542
815,227,626
323,349,843
285,395,664
150,986.611
247.414,617
319.979,949
115,510,903
95,261,089
145.511,214
231,243.017
103,486.878
21,015.875
20,813,263
89.784,763
38.151.255
48,891,243
34.737,532
31,111,821
12,319,717
38.026.819
37,092,629
53,174,366
149,917.403
19,749,372
38,911,582
35,591,744
27.278,586
25,489.520
36.319,005

%
-31.2
-20.7
-12.6
-22.0
-29.5
-26.1
-23.7
-22.9
-19.6
-25.6
-25.9
-12.5
-15.9
-8.4
-17.3
-17.0
-18.3
-25.0
-19.1
-16.6
-24.9
-22.2
-20.5
-23.8
-12.8
-22.0
-27.4
-7.6
-22.8
-19.0
-21.4
-33.3

Year 1930.
$
6,917,957.798
6,036.838,536
2,517.469.597
914,132.520
372,586,710
339,596,344
174.720.945
310.976.401
451.865,100
124.234,187
125,903,653
168,006,976
296,550,901
252,891,214
26.763,125
29.064.091
117.776,087
59,359.874
58,149.011
43,514,483
43.641,532
17.302,533
47,057.616
45,958,555
63.411,042
214.689.007
22,887.312
51.039.289
44,029,368
32,213.088
36,465,041
57.857,7.54

Year 1929.
$
8.279.414.820
7,721.361.164
3,393,339.677
1.243,625.652
443,895.304
375.097.862
197.539.725

350.828.242
697.716.733
151,865.016
151.226.015
183.916.716
358.982,727
341,917.650
35.403.096
36,807.465
146.732.755
72,492,575
76.811,637
52,807,241
52.236.137
26.445.424
51.283 226
54.664.850
71,102.676
303.189.777
27.389.870
53.623.914
46.678.714
41.710.000
42,932,463

Year 1928.
$
8.072.843,473
7,674,586.731
3,443.151.967
1.100,937,564
431,183,371
361,754.092
185,679.424
337,854,407
666.517.374
150.693.371
134.095,845
160.871,381
351,324,768
312,089.792
38,728.824
40,772,004
138,787.497
73,510,635
72.529,308
59,588,922
44.774.994
26.802,962
49.138.361
50,623,174
66.300.152
260,032,888
25,131,848
49,386,221
46,174.083
43,568.049
37,854,684

Ye,r 1927.
S
6,771,872.659
6,484,586,731
2,794.527.877
924,784,859
374,560,769
349,324,254
163,572.908
296,400,645
436.380.336
134,755,457
117,462,545
167.784,864
286.552.842
259,733,292
31.888.338
31,878.544
109.929.060
69.893,412
63,699,387
51.979,079
42.108.115
18,017.757
45.621.253
47,448.683
60,999.616
243,913.681
20.755,563
45.899,119
42.541.149
41.681,478
35,936,684

Year 1926,
$
5,646.347.421
5.196.428.183
2,708.415,764
888.704.118
338.607.358
319.659.404
150.800,402
268.402,609
393.910,637
136.226.527
110.885,953
142.856.910
259.611.119
240.953.818
31.005.956
29.565.732
103.237.697
64,190,200
55.117,564
48.102,058
39.253.110
15.462.521
41,385.282
44,259.492
51.757,433
219 129.742
20.193.964
44,207.861
38.282,486

Year 1925.
$
5,143,250.794
4,914.652.246
2,892,376,615
807.197.610
328.862.264
296,868.697
153.908,814
250,224,656
355,320,700
131.306.092
101.269.481
136.640,609
239.350.281
225.429.503
31.805.295
28.311,024
91,330,853
61.186,405
50.714,486
43.110.272
33.049,655
15.359.364
40,564.340
42.169.666
49.231.111
172.716,001
17.347.712
41.258.874
36,429.854

12,909.613.409 16,843,377,545 -23.4 20.094,909,690 25.085,039,125 24,556.298.549 20.566.490.856 17,646,961,411 16.731,243,264
been only one
a Now refuses to report clearings. b Clearing House not functioning at present. c Six months figures. n clearings reported since June, there having
bank open since that time.
Total (32 cities)




390

Financial Chronicle

Jan. 21 1933

Indications of Business Activity
THE STATE OF TRADE—COMMERCIAL EPITOME.
Friday Night, Jan. 20 1933.
Trade has remained in much the same state. For the
most part it is quiet, though there are gains, generally small,
here and there. In New York there has been a slight
improvement, both in the sales of goods and in collections.
Retailers in different parts of the country have been holding
special sales for the purpose of getting rid of left-over goods,
and low prices have had to be accepted for that purpose.
The heavy industries have been generally quiet, and steel
prices have been noticeably weak with the production 16%
of capacity. Automobile and tin plate industries buy steel
to some extent, but nothing like enough to make up for the
lack of a good demand from the railroads. Pig iron has been
very dull, partly owing to the competition of foreign, including Japanese. The shoe industry is doing a fair business,
but taking industry as a whole it is quiet. The stock market
has not been encouraging. The trade has continued to be
abnormally small and a certain amount of weakness has
appeared while bonds have been less active and more or less
depressed and irregular. Budget developments at Washington hang fire. The attitude of Wall Street has been that
of watching and waiting. This certainly is not encouraging
to the country at large, which looks more or less to Wall
Street and the stock market for guidance. Meanwhile
failures are reported to be smaller than at this time last year.
In Chicago there has been some gain in general merchandise trading, but big industries have been quiet. Steel
production was about 10%, with the railroads not buying
as much as had been expected. Steel sheets declined $2
recently in response to an easing of prices at the East. The
retail trade in coal has been only fair. The house furnishings and furniture exhibitions at Chicago brought out
a large attendance of wholesalers, but actual buying was
small. Textiles made the best showing of anything in the
Chicago department stores. Wash dresses also sold well
and the difference between dollar totals as compared with
those of a year ago improved somewhat. The shoe market
has reported good sales. At St. Louis many small banks
closed. Retail trade there has been quiet. Wholesale
houses report fair orders for spring goods. Shoe plants at
St. Louis are fairly busy, but iron and steel are dull and
unemployment shows little or no sign of improvement.
Coal mines are operating on a fair scale. Kansas City
wholesale and retail trade was quiet. In Cleveland -there
was some increase in steel production, but it was not up to
the usual mark for this time of the year. There was less
demand there for automobile parts. The sales of department stores in December and for the year show a decline in
dollar sales compared with 1931 of 27%. At Minneapolis
retail trade improved, but salaries and employment have
been reduced. The flour trade was less active after production had reached 80% of capacity. San Francisco
reports a cheerful feeling as to the future, but prices of butter
and eggs have fallen sharply and fruit growers are planning
to reduce shipments markedly in order to brace prices.
The California rainfall continued to be below normal,
though there is less complaint from the northwestern part
of the State. The total mining output for 1932 was smaller
than for 1931.
In Boston special sales at marked-down prices are meeting
with only fair response and in New England as a rule trade
is slow. There is a gradual increase in the operations of the
shoe industry, though the uncertainty as to the future of
prices is a damper. The woolen and worsted mills are fairly
busy in New England, but there is no sign of improvement
in steel, machinery and general department trade. Cotton
goods have sold better and most rayon plants are running at
capacity. In Philadelphia the sales of men's and women's
clothing are at unusually low prices. Wheat has been
variable in tone but latterly firmer as leading markets like
Liverpool and Winnipeg advanced sharply and pulled
Chicago up with them. Moreover, the coming season, it is
reasoned, may see a more or less radical change for the better
in the world's statistical situation in wheat, since present
indications seem to point to a marked decrease in the winter
wheat crop of the United States. Corn has followed wheat
pretty faithfully, but a Scandinavian demand for American
corn and smallness of offerings by the interior have imparted




greater inherent firmness to corn and it has acted more or
less accordingly. Other grains have had no distinctive
features.
Cotton, though irregular, has latterly been firmer, though
speculation has been quiet as nobody has yet any light as
to the probable size of the next acreage or what Congress
will do in the matter of legislation affecting cotton and
Mei.crops. Meanwhile, there is a steady home and foreign
trade demand. Spot cotton sold more freely at higher
prices at one time and with the basis always peculiarly
strong. Unfortunately cotton goods have been dull and
some print cloth constructions have declined. Manchester
has also been dull. As regards the next acreage the price
of cotton has been so low this season that some usually wellinformed People find it difficult to see how the farmer can
buy fertilizers, implements and mules on the usual scale
to plant the normal cotton.
The stock market on the 14th closed at a small and irregular decline with the trading down to 360,000 shares. There
was also an irregular drop in bonds with sales of $3,564,000.
The usual standbys among stocks were steady. Nothing
happened of striking significance. On the 16th stocks after
an early advance turned downward on renewed liquidation.
The trading was small,reaching only 868,333 shares and there
were no really striking features; it was simply a case of letting
go on a very moderate scale with bonds less active and lower
and the transactions down to 810,500,000. Amer. Tel. &
Tel. stock closed 23/b points lower,the reason given being that
the company had issued no fourth quarterly report as it
usually does. On the 17th stocks had a small, irregular
rally but with sales of only 663,735 shares. Bonds were
lower especially U. S. and German government issues with
transactions of $11,126,000. All of which simply meant an
uneventful and uninteresting day except that the tone was
steadier.
On the 18th inst. trading was again light at
some decline ending steady after sales of only 687,085 shares.
One explanation of the decline, such as it was, was reports
from Washington that progress on tax legislation had come to
a halt. Declines of Yi to 13/ points were the result in such
stocks as American Telephone, U. S. Steel, Santa Fe, Union
Pacific and Consolidated Gas.
On the 19th stocks were quiet, but firm, with a net advance
of an average fraction. The sales were only 624,040 shares.
Bonds were irregular as to domestic corporation and foreign
issues, but strong on U. S. Government with transactions of
$10,900,000. In other words it was a quiet day in Wall
Street which seemed to be watching developments or awaiting
a new clue of some sort. Quite a general advance, in which
cotton and other commodities received scant notice, but the
technical position of stocks was considered better. To-day
stocks, after early strength, encouraged by war debt news
and the early advance in wheat, lapsed into dullness and
moved within very narrow range. Bonds were firmer and
more active with U. S. Government issues leading the way.
The news from Washington that President Hoover and
President-elect Roosevelt had reached an agreement to
discuss the war debt problem with Great Britain, and a
reduction in the rate paid on deposits by the New York
Clearing House banks were the principal factors. And it is
almost a certainty that no long-term financing will be
attempted in connection with the February 1st floating debt
maturities.
Special mill news in recent weeks has been markedly absent.
Here print cloths have latterly been lower on a number of
constructions; 64 x 60, 38M-inch sold off to 33c. spot
and later with trade dull even at that price; second hands,
3%0•; 68 x ns were 35/ic.; 38 -inch, 60 x 48s at 2%c.;
27-inch,64 x 60s,2Ylc., with most sellers holding for 2 5-16c.;
28-inch, 64 x.60s, 2 7-16c. Mill quotations on 44-inch,
6.40-yard were 23/8c.; 36-inch, 68 x 72s, 3Y2c.
WEATHER.—It was 30 to 44 degrees in New York and
Philadelphia on the 15th; 20 to 50 in Chicago; 28 to 54 in
Cincinnati; 30 to 50 in Cleveland; 24 to 50 in Milwaukee;
42 to 58 in Kansas City; 28 to 40 in Minneapolis; 26 to 46
in Boston. A cold wave swept over Spain and at one point
it was 9 degrees below zero. On the 16th of January the
weather continued abnormally mild. It was 54 in Chicago;
52 at Cleveland, Cincinnati, Milwaukee, and Boston 54;
at Kansas City, 62; at St. Louis, 57; at New York it was 56;

Financial Chronicle

Volume 136

391

at Philadelphia, 32. It was 32 at St. Paul and 12 to 20
degrees below zero at Winnipeg. In the Adirondack section
of New York State farmers have recently been doing spring
plowing favored by abnormally mild weather. Binghamton
had a new high record of 54 degrees for Jan. 16th; also
Syracuse, N. Y., with 56. Buffalo, N. Y. had 50 and grass
fires broke out near there. Rochester, N. Y., reported
robins and pussy willows with the temperature 52.
On the 17th it was still 56 degrees here with a minimum
of 40. It was colder at the West with 36 maximum at
Chicago. Madrid, Spain, had a heavy snowstorm which
frightened many of the ignorant who had never seen snow
before. On the 18th it was cooler here, 37 to 45, with rain
and warmer predicted for the 19th; at Chicago it was 32 to
46, at Detroit 28 to 36, at Minneapolis 6 to 36, at Omaha
24 to 42. On the 19th it was warmer here with a maximum
temperature of 52. At the West it was 44 to 60, the latter
at Cleveland and Cincinnati. Detroit had 54. In other
words, it was still remarkable weather for this time of the
year. At Winnipeg it was 4 degrees below zero and at
Minneapolis 16 to 20. The Far West was swept by rains
and snows. There was a 50-mile gale in Nevada which was
piled high with snowdrifts. In Oregon after stormy weather
for three days it was moderating. Los Angeles warships
put out to sea to ride out the storms of high winds and
heavy rain.
It was 41 to 50 degrees here to-day and the forecast was
for fair and warmer to-morrow. Portland, Me., overnight
had 30 to 40 degrees, Philadelphia 48 to 58, Chicago 28 to
46, Cincinnati 30 to 60, Detroit 30 to 54, Milwaukee 24 to
44, Kansas City 40 to 48, Montreal 30 to 44 and Winnipeg
4 to 18 degrees below zero.

corresponding period last year. The percentage decrease as
compared with 1932 was 6.7% as against an average decline
of 5.9% for the three weeks ended Jan. 7 1933.

Wholesale Price Index of National Fertilizer Association for Week Ended Jan. 14 Shows Slight Decrease
Although Grains Were Decidedly Higher.
Although the number of commodities that showed price
advances during the latest week outnumbered the declining
commodities; there was a small decline in the general index
number for all commodities. The index of the National
Fertilizer Association dropped from 58.2 to 57.9 for the week,
(ended Jan. 14). Practically all grains were decidedly
higher but sharp drops in foodstuffs, lard, butter, and hogs
more than dissipated the gains made in prices for a small
number of important commodities. A month ago the index
stood at 59.3 and a year ago at 63.9. (The three year
average 1926-1928 equals 100.) Under date of Jan. 16 the
Association also said:

86.063.969.000 89.467.099.000 00_277.1A311410
a Change computed on basis of average daily reports.
Note.-The monthly figures shown above are based on reports covering approximately 92% of the electric light and power industry and the weekly figures are based
on about 70%.

Of the 14 groups listed in the index, five declined, four advanced and the
remaining five showed no change. The most heavily weighted groups,
foods and fuel declined rather sharply. Fats and oils declined even more
sharply but this group is not among the most heavily weighted groups in
the index. Metals and textiles declined insignificantly. Advancing groups
were grains, feeds and livestock, miscellaneous commodities, building
materials and fertilizer materials. The only noteworthy gain was that
shown in the grains, feeds and livestock group. With the
exception of hogs
and lambs, all active commodities in this group moved up.
During the latest week there were 29 commodities that showed price
advances while 24 commodities showed pries losses. With the exception
of
grains and cattle the gains were comparatively small while other
commodities such as lard, butter, eggs, silk and gasoline dropped rather
sharply.
During the preceding week there were 27 price advances and
15 declines.
Important commodities that advanced during the latest week
included
Cotton, cottonseed oil, linseed oil, tallow, flour corn, wheat, cattle, heavy
melting steel, lead, turpentine and calf skins. Losses were shown for lard,
butter, wool, silk, cheese, eggs, sugar, potatoes, apples, hogs, zinc,
silver,
gasoline and rubber.
WEEKLY WHOLESALE PRICE INDEX-BASED ON 478 COMMODITY
PRICES (1926-1928=100).
Per Cent
Each Group
Bears to the
Toted Index.

Group.

23.2
16.0
12.8
10.1
8.5
6.7
6.6
6.2
4.0
3.8
1.0
.4
.4
.3

Foods
Fuel
Grains, feeds fu3d livestock_ _ _
Textiles
Miscellaneous commodities _ _
Automobiles
Building materials
Metals
House-furnishing goods
Fats and oils
Chemicals and drugs
Fertilizer materials
Mixed tertillzer
Agricultural Implements__

Inf.

n

Alt arnmva entnhInpd

Latest
Week
Jan. 14
1933.

Prvceding
Week.

Month
Ago.

Year
Ago.

57.7
57.3
36.7
43.0
60.8
86.6
70.9
67.3
77.4
43.7
87.3
61.8
67.9
91.8

58.6
57.7
35.8
43.1
60.7
86.6
70.8
67.4
77.4
46.5
87.3
61.7
67.9
91.8

60.2
62.2
35.7
43.0
61.2
88.6
70.7
67.6
77.4
47.5
87.3
61.7
67.9
91.8

66.1
58.9
50.0
49.8
64.7
89.1
72.3
73.9
82.2
48.1
88.8
70.1
79.1
92.7

87.9

524.2

8Q5

RR 0

Electric Output Gained During Week Ended Jan, 14
1933.
According to the National Electric Light Association, the
production of electricity by the electric light and power
industry of the United States for the week ended Jan. 14
1933 was 1,495,116,000 kwh., compared with 1,460,639,000
kwh. in the preceding week and 1,602,482,000 kwh. in the




PER CENT CHANGES.
Week End. Average of Three Weats
Jan. 14 '33. Ended Jan. 7 1933.

Major Geographic RegionsAtlantic Seaboard
New England (alone)
Central Industrial
Pacific Coast

--10.4
--4.5

-4.6
-3.6
-8.5
-5.0

Total United States

-6.7

-5.9

--5.1

Arranged in tabular form, the output in kilowatt hours of
the light and power companies for recent weeks and by
months since the first of the year 1932 is as follows:
DATA FOR RECENT WEEKS.
Week of- 1932-1933.
Dec. 10
Dec. 17
Dec. 24
Dec. 31
Jan. 7
Jan. 14
Jan. 21
inn

Week of- 1931-1932.

1,518,922,000 Dec. 12
1,563,384,000 Dec. 19
1,554,473,000 Dec. 26
1,414,710,000 Jan. 2
1,460,639,000 Jan. 9
1,495,116,000 Jan. 16
Jan. 23

912

•

Rn

1,671,717 000 Dec. 13
1,675,653 000 Dec. 20
1,564,652 000 Dec. 27
1,523,652 000 Jan. 3
1,619,265 000 Jan. 10
1,602,482 000 Jan. 17
1,598,201 000 Jan. 24
1 %RR 057 nnn Ian 21

1931-32.
Under
1930-11.

1,748,109,000
1,769,994,000
1,617,212,000
1,597,454,000
1,713,508,000
1,716,822,000
1,712,786,000
1 557 IRA nnn

-9.1%
-6.7%
-5.9%
-6.7%

1932.

1931.

1930.

1929.

1932
Under
1931.

7,014,066,000
6,518,245,000
6,781,347,000
6,303,425,000
6,212,090,000
6,130,077,000
6,112,175,000
6,310,667,000
6,317,733,000
6,633,865,000
6,507,534,000

7,439,888,000
6,705,564,000
7,381,004,000
7,193,691,000
7,183,341,000
7,070,729,000
7,286,576,000
7,166,086,000
7,099,421,000
7,331,380,000
6,971,644,000
7,288,025,000

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
7,391,196,000
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
7,285,350,000
7,486,635,000
7,220,279,000
7,484,727,000
7,772,878,000
7,523,395,000
8,133,485,000
7,681,822,000
7,871,121,000

5.7%
a6.1%
8.2%
12.4%
13.5%
13.3%
16.1%
11.9%
11.0%
9-5%
6.7%

MonthsJanuary_ _ _ _
February__ _
March
April
May
June
July
August
September _ _
October
November _ _
December-._

inn

Week of- 1030-1031.

Tntn1

Sharp Decline for Annalist Price Index.
A sharp drop of 1.1 points carried the "Annalist" Weekly
Index of Wholesale Prices down to a new post-war low of
82.8 on Jan 17 from 83.9 the week before and 94 a year ago.
While a sharp drop in eggs was the chief cause of the decline,
lower prices for the grains,flour, cotton, butter, silk, gasoline
and finished steel also contributed materially. New group
lows were made by food products, textiles, metals and
miscellaneous.
THE ANNALIST WEEKLY INDEX OF WHOLESALE COMMODITY PRICES
(Unadjusted for Seasonal Variation.) (1913=100.)
Jan. 17 1933. Jan, 10 1933. Jan. 19 1932.
Farm products
Food products
Textile products
Fuels
Metals
Building materials
Chemicals
Miscellaneous
All rnmmoditleg

64.1
88.4
*66.8
114.0
93.9
106.6
95.2
69.7
82.8

65.8
91.6
x67.1
115.5
94.3
106.6
x95.2
71.1
83.9

80.2
95.3
80.6
124.3
97.9
108.6
96.6
84.1
94.0

•Provisional. x Revised.

Wholesale Prices for Week Ending Jan. 14 1933.
The Bureau of Labor Statistics of the U. S. Department
of Labor announces that its index number of wholesale prices
for the week ended Jan. 14 stands at 62.0 as compared with
61.9 for the week ended Jan. 7, showing an increase of approximately two-tenths of 1%. These index numbers are
derived from price quotations of 784 commodities, weighted
according to the importance of each commodity and based
on average prices for the year 1926 as 100.0.
The accompanying statement shows the index numbers of
groups of commodities for the weeks ending Dec. 17, 24 and
31 1932, and Jan. 7 and 14 1933.
INDEX NUMBERS OF WHOLESALE PRICES FOR WEEKS OF DEC. 17, 24
AND 31 1932, AND JAN. 7 AND 14 1933.
(1926=100.0)
Week EndingDec. 17 Dec. 24 Dec. 31
All commodities
Farm products
Foods
Hides and leather products
Textile products
Fuel and lighting
Metals and metal products
Building materials
Chemicals and drugs
Housefurnishing goods
Miscellaneous

63.0
44.7
58.8
69.3
53.0
71.5
79.3
70.6
72.3
73.5
63.2

62.5
44.3
58.4
69.1
52.8
69.5
79.3
70.9
72.3
73.5
63.2

62.2
43.7
57.9
69.1
52.5
69.0
79.3
70.8
72.2
73.5
63.1

Jan. 7

Jan. 14

61.9
43.8
58.1
68.9
52.7
68.1
79.1
70.7
72.0
73.3
61.4

62.0
45.2
58.2
69.2
52.3
67.8
79.0
70.6
72.1
73.3
61.5

Loading of Railroad Revenue Freight Continues to
Run Low.
Loading of revenue freight for the week ended on Jan. 7
totaled 435,652 cars, the car service division of the American

Financial Chronicle

392

Railway Association announced on Jan. 14. This was an
increase of 28,873 cars above the preceding week. It was,
however, a reduction of 136,026 cars below the corresponding
week in 1932 and 277,476 cars under the same period in 1931.
The week of Jan. 7 this year contained a holiday but the
corresponding weeks in the two previous years did not.
Details follow:
Miscellaneous freight loading for the week of Jan. 7 totaled 140,480 cars,
an increase of 11,421 cars above the preceding week but 43,723 cars under
the corresponding week in 1932 and 94,650 cars under the same week in 1931.
Loading of merchandise less than carload lot freight totaled 133,534 cars,
an increase of 6,263 cars above the preceding week but 49,936 cars below
the corresponding week last year and 68,850 cars under the same week two
years ago.
Grain and grain products loading for the week totaled 24,108 cars, 2,079
cars above the preceding week but 3,384 cars below the corresponding
week last year and 15,412 cars below the same week in 1931. In the
Western districts alone, grain and grain products loading for the week ended
on Jan. 7 totaled 14,984 cars, an increase of 2,447 cars below the same week
last year.
Forest products loading totaled 12,242 cars, 2,793 cars above the preceding week but 4,579 cars under the same week in 1932 and 17,733 cars
below the corresponding week in 1931.
Ore loading amounted to 1,216 cars, a decrease of 239 cars below the week
before, 1,978 cars under the corresponding week in 1932 and 3,951 cars
under the same week In 1931.
Coal loading amounted to 103,086 cars, an increase of 3,239 cars, above
the preceding week but 22,841 cars below the corresponding week In 1932
and 61,780 cars under the same week in 1931.

Jan. 21 1933

Coke loading amounted to 5,277 cars, 958 cars above the preceding week
but 728 cars below the same week last year and 3,638 cars below the same
week two years ago.
Live stock loading amounted to 15,709 cars, an increase of 2,359 cars
above the preceding week, but a decrease of 8,857 cars below the same week
last year and 11,462 cars below the same week two years ago. In the
Western districts alone, loading of live stock for the week ended on Jan. 7
totaled 11,977, a decrease of 7,425 cars compared with the same week last
year.
All districts reported reductions in the total loading of all commodities
compared not only with the same week in 1932, but also with the same week
in 1931.
Loading of revenue freight in 1933 compared with the two previous years
follows:

Week ended on Jan. 7

1933.

1932.

435,652

571,678

1931:
713,128

The foregoing, as noted, covers total loadings by the railroads of the United States for the week ended Jan. 7. 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
of the general totals-that is, are for the week ended Dec. 31.
During the latter period a total of 15 roads showed increases
over the corresponding week last year, the most important
of which were the Virginian Ry. and the New York Ontario
& Western Ry.

REVENUE FREIGHT LOADED AND RECEIVED FROM CONNECTIONS (NUMBER OF CARSi-WEEK ENDED DEC. 31.

1932.
Eastern DistrictGroup A:
Bangor & Aroostook
Boston & Albany
Boston & Maine
Central Vermont
Maine Central
New York N. H. & Hartford...
Rutland
Total
Group It: ,
y Buff. Rochester & Pittsburgh
Delaware & Hudson
Delaware Lackawanna dz West_
Erie
Lehigh & Hudson River
Lehigh & New England
Lehigh Valley
Montour
New York Central
New York Ontario dr Western
Pittsburgh & Shawmut
Pats.Shawmut & Northern
z Ulster & Delaware
Total
Group C:
Ann Arbor
Chicago Ind. & Louisville
Cleve. Gin. Chic. & St. Louis..
CentralIndiana
Detroit & Mackinac
Detroit & Toledo Shore Line--Detroit Toledo dr Ironton
Grand Trunk Western
Michigan Central
Monongahela
New York Chicago & St. Louis_
Pere Marquette
Pittsburgh & Lake Erie
Pittsburgh & West Virginia_ _ _
Wabash
Wheeling & Lake Erie
Total
•

Grand total Eastern District...
Allegheny DistrictBaltimore & Ohio
Bessemer & Lake Erie
y Buffalo & Susquehanna
Buffalo Creek & Cawley
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 A:
Atlantic Coast Line
Clinchfield
Charleston & Western Carolina
Durham & Southern
Gainesville & Midland
Norfolk Southern
Piedmont & Northern
Richmond Frederick. & PotomSeaboard Air Line
Southern System
Winston-Salem Southbound.

Total Loads Received
from Connections.

Total Revenue
Freight Loaded.

Railroads.

1931.

1930.

1932.

1931.

1,209
2,282
5,462
487
1,805
7,881
388

1,717
2,799
6,666
584
2,476
9,355
434

2,444
3,028
8,096
651
3,616
10,900
538

189
3,569
6,659
1,484
1,443
8,089
685

201
3,896
8,045
1,597
2,455
9,568
802

19,514

24,031

29,273

22,118

26,564

aroYoi

4:824

6,086

6,296
8,884
98
970
5,840
*1,615
13,727
1,847
376
246

8,428
10,028
114
1,635
6,157
1,604
16,917
1,486
439
390

9,113
10,941
170
1,209
7,245
2,117
20,941
1,022
590
425

47,566
3,689
9,337
1,348
572
4,885
17
17,881
1,497
27
189

6,6116
4,550
10.167
1,643
757
4,043
26
20,911
1,561
14
183

43,803

52,022

59,859

43,802

48,941

291
1,082
5.736
14
181
169
824
2,013
4,547
2,610
2,768
3,524
2,113
886
3,806
2,187

499
1,285
7,710
42
171
205
1,067
2,259
5,423
3,537
3,695
4,105
3,278
860
4,745
2,300

471
1,550
8,387
53
238
156
1,044
2,752
5,346
4,722
3,993
3,243
4,269
1,137
5,171
2,450

647
1,260
7,402
36
52
2,049
718
4,830
6,186
95
5,599
3,324
2,749
392
4,824
1,230

815
1,446
8,204
83
76
2,095
636
4,770
6,480
158
5,882
3,157
3,886
528
5,037
1.665

32,751

41,181

44,982

41,399

44,918

96.068

117,234

134,114

107,319

120,423

17,902
563

22,436
1,022

27,856
1,205

8,593
372

9,739
849

-191
4,142
3
255
221
847
41,746
8,857
2,858
48
2,147

143
5,960
4
317
213
866
51,805
10,359
5,338
47
2,379

202
6,888
5
426
152
1,154
60,955
13,383
8,774
64
2,883

3
7,054
21
8
2
1,889
22,319
10,315
491
1
2.253

2
8,529
63
10
' 12
2,337
27,038
12,595
1,196

Group B:
Alabama Tenn. dr Northern....
Atlanta Birmingham & Coast_
Atl. dr W.P.-West.RR.of Ala
Central of Georgia
Columbus & Greenville
Florida East Coast
Georgia
Georgia dr Florida
Gulf Mobile & Northern
Illinois Central System
Louisville dr Nashville
Macon Dublin dr Savannah....
Mississippi Central
Mobile & Ohio
Nashville Chatt. & Bt. Iona_
New Orleans-Great Northern__
Tennessee Central




Total Loads Received
from Connections.

1932.

1931.

1930.

1932.

114
415
422
1,980
159
688
443
181
573
13,970
12,066
74
59
1.212
1,869
283
236

243
517
558
2,655
244
668
595
233
593
17,266
15,228
106
104
1,612
2,385
512
462

227
584
692
3,299
271
919
820
344
878
21,138
21,119
105
176
1,969
2,761
622
593

132
417
613
1,278
105
357
831
202
375
5,287
2,032
267
137
769
1,376
240
423

1931.

78
533
694
1,734
144
610
986
228
486
6,631
2,687
300
225
759
1,590
226
372

34,744

43,979

56,517

14,841

18,283

Grand total Southern District._

60,033

75,709

97,379

32,960

38,005

Northwestern DistrictBelt Ry. of Chicago
Chicago & North Western
Chicago Great Western
Chic. Maw. 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. Louis
Minn. St. Paul & S. S. Marie..
NorthernPacific
Spokane Portland & Seattle....

362
9,016
1,650
11,895
2,448
263
229
2,188
173
5,563
380
1,236
2,847
5,402
546

940
11,117
2,217
14,207
2,790
357
294
3,573
148
5,808
417
1.408
3,232
5,956
669

1,065
14,138
2,417
17,625
3,992
572
708
4,756
263
7.751
559
1,946
4,544
7,485
809

778
5,433
1,547
4,218
1,889
511
233
2,720
100
1,024
285
928
1,065
1,117
568

894
5,837
1,819
5,295
1,908
95
262
3,639
89
1,311
222
960
1,325
1,401
667

44,198

53,132

83.630

21,961

25,724

13,374
2,113
233
9.859
8,960
1,978
771
.3,118
454
945
361
104
8,249
214
176
8,624
802
749

17,047
2,705
174
13,065
12.101
2.343
919
2,666
474
1,904
291
62
10,483
247
192
10,130
892
899

22,321
3,162
174
18,402
12.844
2,723
1,989
4,276
451
1,141
409
67
14,123
211
197
14,692
1,390
1,065

2,556
1,102
25
3,787
4,015
1,092
609
1,432
2
642
155
3
2,232
177
511
3,792
7
727

3,370
1,498
30
4,211
5,516
1,662
728
1,313
7
862
148
83
2,838
143
576
4,643
10
942

61,084

76,394

99,637

22,866

28,460

95
145
226
1,117
119
1,310
188
1.307
735
158
558
41
3,549
10,116
43
123
6,164
1,666
389
3,920
2,813
1,175
14

129
153
332
2,006
265
1,488
254
1,856
1,365
260
786
80
4,366
12,515
36
129
8,855
2,250
559
6,144
4.388
1,469
25

152
210
254
1,791
207
1,409
292
1,924
1,098
259
883
64
4,829
15,241
27
76
8,548
1,866
483
5,915
4,728
1,620
28

2,067
326
88
728
20
1,268
548
1,076
688
287
107
180
1,460
4,492
7
103
2,025
785
191
1,856
1,761
1,204
28

2,252
490
82
893
28
1,623
843
1,530
995
387
173
442
1,860
6,077
14
72
2,308
1,200
253
2,270
2,827
1,810
39

35,971

49,710

51,903

21,295

28.468

Total

Total
Central Western DistrictAtch. Top.& Santa Fe System.
Alton
Bingham & Garfield
Chicago Burlington & Quincy-Chicago Rock Island & Pacific_
Chicago & Eastern Illinois
Colorado & Southern
Denver & Rio Grande Western_
Denver & Salt Lake
Fort Worth & Denver City._ _ _
Northwestern Pacific
Peoria & Pekin Union
Southern Pacific (Pacific)
St. Joseph & Grand Island
Toledo Peoria & Western
Union Pacific System
Utah
Western Pacific
Total

3,403

79,780

100,889

123,947

53,321

65,773

15,211
11,309
578
2,547

15,514
11,622
735
1,788

21,020
14,421
717
3,092

3,930
2,164
599
371

3,957
2,453
741
261

29,645

29,659

39,250

7,064

7,412

5,647
706
247
84
44
803
393
197
4,679
12,366
123

6,944
797
320
134
50
1,096
526
279
5,445
16,000
139

9,783
1,131
440
105
56
1,455
495
304
7,533
19,407
153

2,769
928
550
211
52
631
528
2,477
2,262
7,307
404

2,995
714
622
156
69
714
555
2,474
2,434
8,387
602

Southwestern DistrictAlton & Southern
Burlington Rock Island
Fort Smith & Western
Gulf Coast Lines
Houston & Brazos Valley
International-Great Northern
Kansas Oklahoma & Gulf
Kansas City Southern
Louisiana & Arkansas
Litchfield & Madison
Midland Valley
Missouri dr North Arkansas._ _
Mfasouri-Kansas-Texas Lines..
MissouriPacific
Natchez & Southern
Quanah Acme & Pacific.......
St. Louis San Francisco
St. Louis Southwestern
San Antonio Uvalde dr Gulf -Southern Pacific in Texas & La.
Texas & Pacific
Terminal RR. MM.of St. Louis
Weatherford Min. Wells & N.W

40.862
18,119
31,730
19,722
1 25,289
Total
• Previous figures.
a Included In New York Central. y Included in Baltimore & Ohio RR, a Estimated.

otel

Total Revenue
Freight Loaded.

Railroads.

Financial Chronicle

Volume 136

Col. Leonard P. Ayres of Cleveland Trust Company
Cites Three Factors as Probably Shaping Nation's
Course in 1933—Financial Conditions, Business
Conditions and National Morale—Plight of Railroads One of Most Urgent of National Economic
Problems.
"Three sets of factors will problably shape the course of the
economic welfare of the nation in 1933, and determine its
degree of•change for the better or for the worse," says Col.
Leonard P. Ayres, Vice-President of the Cleveland Trust
Company, in the Company's "Business Bulletin" dated
Jan. 16. "The first of these" abserves Col. Ayres "consists
of financial conditions and here we are clearly better off than
we were a year ago" He goes on to say:
The conditions of financial panic that prevailed late in 1931. and which
returned early in 1932, are things of the past. Few banks are suspending
as 1933 begins. Hoarded funds are coming back into circulation. Gold
has stopped going abroad, and is returning.
Business conditions constitute the second set of controlling factors, and
in these regards we are not so well off as we were a year ago. Our national
budget is unbalanced. The railroad crisis still threatens. Commodity
prices are lower. Unemployment is more serious. The financial difficulties of municipalities are more acute. International trade has fallen to
lower levels. War debts are still unsettled, and defaults have occurred.
Corporate earnings are lower, and wage rates have declined. In general
any comprehensive set of statistical measurements of business activity will
show preponderant declines for the past year.
The third set of factors is made up of elements that are less surely ponderable, but which are perhaps more important than the others. They are
those that make up the courage, the fortitude, the national morale of a
people beset by the difficulties of a great economic depression. Probably
these conditions are better than they were a year ago. The steady return
of hoarded funds reflects increasing confidence. The elections largely
eliminated political dissatisfactions. Great numbers of families and firms
are solving the problems of carrying on successfully with lower incomes and
at lower price levels.
We can improve conditions in 1933 if we grapple with realities, and crowd
them for solution. It will require vigilance and co-operation, for much that
must be done, both locally and nationally, depends on governmental action,
and everywhere Inexperienced administrations are coming jubilantly into
office. For individuals it is time for the old fashioned virtues of thrift
and self-reliance. For governments, it is a time for budget balancing by
expenditure reduction. For al. it is a time for adjustment to new conditions without repining for the old.

Among other things Col. Ayres directs attention in the
"Bulletin" to the conditions confronting the railroads,
pointing out that "the plight of our railroads constitutes one
of the most urgent of our national economic problems."
Col. Ayres declares that "we need a thoroughgoing revision
of railroad legislation; . . . meanwhile, . . . the
roads need legislation to enable their owners and creditors
to readjust their capital structures." Aside from his forecast, quoted above, Col. Ayres's comments, as contained
in the "Bulletin," follow:
Reconstruction Finance Corporation.
The Reconstruction Finance Corporation is not yet a year old, for it
was organized last February. It was originally authorized to acquire
resources of $2,000,000,000, and this was later on increased to $3,800,000,000 by the emergency relief and construction act. Up to the end of November it had acquired $1,200,000,000 in cash, all of which had been furnished
by the Federal Treasury. In the same period of 10 months it had made
loans amounting to 81,500.000,000 and over $283,000,000 had been repaid.
In the diagram [we omit all diagrams.—Ed.), the four upright columns
represent the loans outstanding at four different periods last year. In
March nearly two-thireis of the loans had been made to banks, but by November the proportion had been reduced to leas than one half of the total.
In a similar way the loans to railroads were nearly 30% of all in March,
but only 20% by November. In the interim the loans of both these classes
had increased in amount, but their share of the total declined, because the
loans to other borrowers increased more rapidly.
Banks have been the greatest borrowers and also the best payers. Up
to the end of November they had received nearly $808,000.000, and they
had repaid $234,000,000. Applications from banks for loans have steadily
decreased in number. They were at their highest point in April, and each
month since then the number of applications for loans by banks has gone
down, until recently they have been well under half as many as they were
in the early months of the activity of the Corporation. Farmers have
borrowed about $85,000,000. and repaid nearly $15,000,000. The railroads
have borrowed about $262,000,000 and repaid about $12,000.000.
Up to the end of the year the advances for relief purposes had amounted
to about $104.000.000, and these funds had gone to 36 States, and to Hawaii
and Puerto Rico. Disbursements for self-liquidating projects amounted in
1932 to about $16,000,000, but more than $100,000,000 in addition had
been agreed upon. The Reconstruction Finance Corporation has played
a most important part in the depression emergency. Its activities availed
to prevent financial chaos last year. It continues to be an essential instrumentality of the Government in these troubled times.
Railroads.
Railroad income was almost as great in the closing quarter of 1932 as
it was,in the last three months of 1931. This is a decidedly reassuring
development, for it is the first time in the long depression that the income
accounts of the rail carriers have shown any signs of becoming stabilized
at levels even nearly equaling those of the preceding year. The earnings
of the roads are still seriously deficient, for they are not sufficient to meet
operating expenses and fixed charges, but at least they are no longer progressively declining, as they have been until recently.
In the diagram [this we ornit.—Ed.), the four lines represent the net
operating incomes of Class I roads in millions of dollars each month during
the past four years. The upper line shows the record of 1929 when the railroad income averaged more than $106,000,000 a month, which was a new
high record. The line clearly reflects the normal seasonal increase of
income in the summer and autumn months, and the declines to lower
levels in the winter and spring. In 1930 the seasonal patterns were closely




393

followed, but the amounts of income were so reduced that the monthly
average fell below $74,000,000. or less than three-fourths of the 1929
average.
In 1931 the shrinkages of business activity were much accentuated in the
second half of the year, and this was reflected in the railroad income accounts. The usual autumn increase was almost absent, and the shrinkage
in income was so great that the monthly average for the year amounted
to only about $44,000,000. Last year the results were still worse, and the
income during the first nine months was far below even the figures of 1931.
Then in the final quarter came a marked improvement which lifted the
totals for the final quarter almost to the levels of the preceding year. The
average monthly income for 1932 was about $27,000,000.
The plight of our railroads constitutes one of the most urgent of our
national economic problems, and so far no adequate steps have been
taken towards solving it. The roads have introduced stringent economies,
and greatly increased their efficiency of operation. Nevertheless all their
efforts have been unavaiiing to offset the reductions of income resulting
from the shrinkage in the volume of traffic during the depression. In 1931
the net income of all the Class I roads amounted to about $141,000,000.
which was sufficient to meet fixed charges about one and one-fifth times.
In 1932 net incomes showed an actual deficit of about $170,000,000, which
means that only about three-fourths of the fixed charges were earned.
As things are now going a railroad crisis is in the making. The roads
constitute almost our greatest industry, and one that is directly essential
to our national welfare. They are one of our greatest employers of labor,
and in the first rank as purchasers of materials from other industries.
Their bonds are held in vast amounts as investments by banks, insurance
companies. trust funds and institutions. The roads are so important as
taxpayers that many communities are largely dependent on them for the
support of their public services. We need a thoroughing revision of railroad legislation in a new national transportation act. Meanwhile, and to
tide over the present emergency, the roads need legislation to enable their
owners and creditors to readjust their capital structures without being
blocked by small dissenting minority groups.
Steel in 1932.
The output of finished steel in this country has stepped down in the
past four years from 1929 through 1932 at what may be termed a four.
three, two, one rate. In 1929 it was almost 40.000.000 tons and a new
high record; in the first depression year of 1930 it dropped to just under
30,000,000 tons; in the second depression year of 1931 it fell to less than
20.000,000. and this past year it was less than 10,000,000 tons. One must
go back through the records for 30 years to the opening periods of the century to find so low an output figure as that of 1932, and still further back
to reach so small a per capita production.
It is probable that the existing steel in use in this country is rusting
away more rapidly than it is being replaced. The reduced proportions
of the output in 1932 are shown by the small size of the last column in the
diagram. [This we omit.—Ed.) The 11 upright columns represent the
production of finished steel during the years from 1922 through 1932.
and the figures at the tops of the columns show the annual totals in units
of hundreds of thousands of tons. The cross-hatched divisions of the
columns show the more important uses to which the steel was put. The
data are those compiled by the trade publication "Steel."
Perhaps the most impressive single fact concerning the record of 1932
is that during the past year more than 10% of our steel output was consumed by the manufacturers of containers. This really 11108118 that tin
cans used over 10% of our steel output, for the cans we refer to as tin
are really made of thin steel sheets. This past year the tin cans used more
steel than did the railroads, which were for many decades the best customers of the industry, and sometimes called for nearly one-third of its
entire output.
In 1932 the automobile industry was the greatest consumer of steel,
as it had been once before in 1928. The building industry was in second
place, instead of being first, as it was in 1931. Then in third place came
the containers, followed by the railroads, and by the pipes and tanks of
the oil country. Exports were less than one-sixth as great as they were
in 1928 and 1929. The sharpest reductions were those of the railroads.
which bought in 1932 less than one-eighth as much steel as they did in
1929, and not one-tenth as much as they did in 1923.
Perhaps the most important and serious fact about these conditions in the
fundamental iron and steel industry is that there is no promising prospect
that they will be much bettered in 1933. The railroads will not be good
buyers this year, for their incomes do not cover their fixed charges and operating expenses. Construction will not take large tonnages, because existing
buidlings can be bought more cheaply than new ones can be erected. Automobiles will not require large amounts, for most people are still managing
to get along with their old cars. The prospects for exports are not bright,
for our foreign trade continues to shrink.
IVational Debt.
Our national debt is now about half as great as our current annual national
income, and considered on that basis it is heavier than ever before in our
history. On the other hand it is equal to less than 7% of our national
wealth, which Is a lower percentage than prevailed in the depression following the World War, and one only about two-thirds as much as it was at the
end of the Civil War. The debts of nations, like those of individuals.
should be considered in relation to both their total wealth and to their
current incomes,for both have important bearings on their capacity to repay.
Figures purporting to reflect the wealth or the income of a nation are at
best only approximations based on estimates and are subject to considerable
allowances for possible margins of error. The data used in constructing
the diagram at the foot of the page assumed that national wealth in 1929
was 3385.000,000,000, and that it had fallen by 1932 to $301,000,000,000.
The national income for 1929 was taken as $85,000,000,000, and that for
1932 as $40,000,000,000. Estimates computed independently and by
different methods would produce other figures, but their relationships to
our national debt since 1850 would probably turn out to be closely similar
to those shown in the diagram. [This we omit—Ed.]
In the diagram the heavy, solid line represents the per cent that the national debt was of the computed national wealth in each year since 1850.
The percentage scale for this line is at the left end of the diagram. The
dashed line represents for each year the percentage that the national debt
was of the computed national income. The scale for the dashed line is at
the right of the diagram. Before the Civial War the weight of national
indebtedness was not great despite the fact that in 1850 we were still paying
off the costs of the Mexican War that closed in 1848.
At the close of the Civil War the debt was heavy indeed. It amounted
to nearly 10% of our wealth and to 35% of our annual national income.
The following decline was rapid, but it was checked when wealth and income
decreased and debt grew in the long depression of the 70's. A similar
temporary increase in the weight of the debt took place in the long depression
of the 90's and that was accentuated by the costs of the war with Spain.
The lowest point was reached in 1916 when the weight of the debt was about
the same as it was just before the Civil War.

Financial Chronicle

394

The burden of debt increased sharply during the World War, but the
subsequent decline was rapid and steady until 1929. Since then the increase has been as rapid as though another great war was being waged.
Our national debt has increased because of our continuing Federal budget
deficits, and our wealth and income have shrunk, which makes the burden
still heavier. The Civil War record offers evidence that it has not grown
beyond our capacity to cope with it. Nevertheless, our national expenditures must shortly be brought within our Federal income.

Valuation of Construction Contracts Awarded as Compiled by F. W. Dodge Corp. Shows 40131% Decline
for December.
The valuation of construction contracts awarded in the
37 States east of the Rocky Mountains in the month of
December 1932 was $55,632,300 less than in December
1931, the figure for December of this year being $81,219,300
against $136,851,600 in the same month of last year, a
decline of 40
as compared with a decline of 30 1-3%
in November of 1932 in comparison with November of 1931.
For the full year the decline from 1931 was $1,741,690,800.

.Month of December1932-Residential building
Non-residential building
Public works and utilities
Total construction
1931-Residential building
Non-residential building
Public works and utilities
Total construction
First Twelve Months1932-Residential building
Non-residential building
Public works and utilities
Total construction
1931-Residential building
Non-residential building
Public works and utilities
Total construction_

Valuation.

1,903
1,363
939

3,437,200
3,330,800
180,700

$12,957,500
24,944,900
43,316,900

4,205

6.948,700

$81,219,300

3,507
1,456
988

8,753,000
8,149,800
307,000

36,183,500
50,212,500
50,475,800

5,951

17,209,800

$136,851,600

38,057
22,623
15,449

73,607.300
79,221,300
2,748,800

$280,067,900
480,789,600
590,301,200

78,129

155,575,400

$1,351.158,700

63,834
27.571
18,798

190,273.600
167,515,500
8.051,100

$811,388,700
1,110,345,800
1,171,115,000

110,203

365.840.200

53.092.849.500

NEW CONTEMPLATED WORK REPORTED-37 STATES EAST OF THE
ROCKY MOUNTAINS.
1931.

1932.
No. of
Projects.
Month of DecemberResidential building
Non-residential building_ _ _
Public works and utilities_
Total construction
'First Twelve MonthsResidential building
Non-residential building_
Public works and utilities..
Totalconstruction

Valuation.

No. of
Projects.

Valuation.

2,351
2,061
1,090

$21,053,400
82,217,300
60,971,100

4,069
1,871
990

$52,635,800
54,704,200
83,326,500

5,502

$144,241,800

8,930

5190.866,500

44,701
28,669
18,185

$410,835,300
560,132,400
867,372,300

70,661
33,301
23,022

$1,116,860,600
1,426,419,600
1,833,781,700

91.555 $1,838,340,000

126,984

$4,377,041,900

Analysis of World Business Situation From "Annalist"
Annual Review-Index of Business Activity for
December-Industrial Output of United States in
1932 at Lowest Level Since 1911.
The following analysis of the world business situation is
from the "Annalist" Annual Review and Business Forecast
number, published Jan. 20:
lo American business activity, as measured by the "Annalist" index, ended
the:year 1932 at about 40% below estimated normal but about 15% above




the low point of the depression, which came in July. The last four months
of the year were characterized by unusual stability, the index having fluctuated within the narrow range of less than a point.
In November,according to the "Annalist" index, business activity entered
the fourth year of uninterrupted depression. This constitutes the longest
period of continuously subnormal business in modern times, with the
exception of the secondary post-war depression of 1873-79. which lasted
nearly six years.
The "Annalist" Index of Business Activity for December stands at 59.6
(preliminary), as against 59.7 for November and 60.0 for October. Although the preliminary indications are that the December final figure will
thus show a small decline, the decrease was the net result of highly irregular
and conflicting movements in the series making up the combined index.
The principal factors tending to bring about a decrease in December were
sharp declines in the adjusted indices of cotton consumption and electric
power production. The adjusted indices of steel ingot production and
pig iron production also declined by substantial amounts.
Largely offsetting these declines, however, there was a substantial gain
in the adjusted index of freight carloadings, caused mainly by a wellsustained volume of coal shipments, and a particularly sharp Increase in
the adjusted index of automobile production, caused mainly by rush
assemblies on new models. The adjusted indices of zinc production and
bituminous coal production also showed increases.
Table I gives the combined index and its components, each of which is
adjusted for seasonal variation and, where necessary, for long-time trend,
for the last three months. Table II gives the combined index by months
back to the beginning of 1919.
TABLE I-THE "ANNALIST" INDEX OF BUSINESS ACTIVITY AND
COMPONENT GROUPS.
December.

November.

October.

Pig iron production
18.3
20.9
Steel ingot production
20.9
24.0
Freight car loadings
56.5
56.0
Electric power production
y65.0
66.2
Bituminous coal production
65.1
64.5
Automobile production
z53.0
17.5
Cotton consumption
75.8
83.4
Wool consumption
___
84.8
Boot and shoe production
-100.4
Zinc production
3:8
30.8
Combined index
x59.6
60.0
x Subject to revision. y Based on estimated output of 7,062,000,000 kilowatt*
hours, as against Geological Survey total of 6,937,000,000 kilowatt-hours for November and 7,773,000,000 kilowatt-hours for December 1931. z Based on National
Automobile Chamber of Commerce estimate of 112.036 cars and trucks, as against
the Department of Commerce total of 61,760 cars and trucks in November and
123,973 cars and trucks in December 1931.
TABLE II-THE COMBINED INDEX SINCE JANUARY 1919.
NWW=CO.n

Number of
New Floor
Projects. Space (Se. Ft.).

1933

NN ,
00

Losses from both November 1932 and December 1931 were shown for
each of the four major construction classes except public utilities, which
showed an advance between November and December 1932, due chiefly
to larger undertakings by railroads. In December gains were scored over
November 1932 and December 1931 for factories, chiefly because of modernization work, and educational buildings while an increase between November and December was also shown for hospitals and institutions, but these
gains were too small to counteract important losses in the remaining principal classes of non-residential building.
Residential awards in December showed a decline of about 32% from the
November total, and were only one-third as large, in the aggregate, as those
reported for December 1931. Contracts let in December for public works
totaled $36,866,200 as against $50,095,900 for November and $39,508,400
for December 1931. It is of interest to note that awards for highways,
though smaller than in November, were larger than in December 1931 and
that contracts for new bridges showed practically no decline from the award
total of December 1931.
For the full year 1932 losses were general for each of the four major construction classes. Non-residential building suffered a decline of almost
57% from the 1931 contract total; residential building declined almost 66%;
public works suffered a loss of 41%, while public utilities awards decreased
almost 75%.
In the case of non-residential building losses from 1931 were suffered in
all principal types; commercial buildings and factories sustained the most
significant declines while public and semi-public building, embracing educational structures, hospitals and institutions, religious and memorial, and
social and recreational facilities also recorded sizable losses from 1931.
In the case of residential building, apartments and hotels suffered relatively larger declines from 1931 than did 1 and 2-family houses.
Contracts awarded for new construction in the 37 States east of the Rocky
Mountains during the period from Jan. 1 through Jan. 15 1933 totaled
343,261,300 according to F. W. Dodge Corp. During the corresponding
period of 1932 a total of $37,312,000 was reported.
CONSTRUCTION CONTRACTS AWARDED-37 STATES EAST OF THE
ROCKY MOUNTAINS.

Ian. 21

1932.

1931.

1930.

1929.

1928.

1927.

1926.

January
February
March
April
May
June
July
August
September
October
November
December

82.8
62.6
81.6
56.5
52.9
52.9
52.0
55.5
60.4
60.0
59.7
*59.6

74.4
76.2
78.0
80.8
78.1
76.5
78.2
73.5
70.8
66.3
65.1
65.5

95.0
134.2
91.2
05.0
90.0
89.0
86.4
83.1
82.4
79.5
76.1
78.1

105.5
106.1
104.3
108.8
110.1
108.9
109.0
108.1
107.3
105.7
96.9
92.1

98.0
99.7
99.4
99.9
101.3
98.7
100.5
102.1
102.4
105.0
103.7
102.0

102.2
104.7
108.9
104.4
104.8
103.4
101.5
101.8
100.9
98.2
95.5
93.7

102.3
103.2
104.7
103.7
101.8
103.2
102.8
105.0
107.1
105.7
105.7
105.0

January
February
March
April
May
June
July
August
3eptember
Dctober
November

1925.
102.4
102.9
102.6
103.4
101.4
98.5
101.1
100.7
100.8
102.1
104.0

1924.
104.0
105.0
102.8
99.3
92.4
86.9
88.8
89.8
95.7
97.7
97.4

1923.
108.1
108.1
111.0
114.2
115.0
111.8
110.8
107.5
105.8
103.7
103.0

1922.
87.1
91.1
94.5
89.2
93.4
98.7
97.4
96.1
98.1
101.4
106.5

MA 5

1921.
82.4
82.2
81.6
82.5
85.3
85.1
83.6
85.2
86.5
88.8
86.7

101 A

UM R

105.5

RA 2

1920.
111.3
111.3
114.9
108.8
110.0
113.6
111.6
110.5
106.2
100.0
94.2

1919.
103.4
97.9
98.9
98.9
100.2
103.0
110.9
108.3
108.6
104.2
106.3

nn n

Ano A

*Subject to revision.
The volume of industrial production in the United States, as measured
by the broadly inclusive annual index computed by Woodlief Thomas and
Aryness Joy and supplemented for later years by the Federal Reserve Board
monthly index, was in 1932 about 20% lower than in 1931, about 33%
lower than in 1930 and about 46% lower than in 1929. In other words,
the production of manufactured goods, including such basic materials as
iron and steel, was little more than halt of the volume of 1929, when, of
course, it reached the highest total in the country's history.
These figures by themselves are impressive, but it is only in comparison
with figures for a considerable period of years that the full significance of
the present curtailment of industrial activity becomes apparent. A chart
of annual industrial production compared with population covering the
entire period since 1899 would bring out two striking facts. The first is
that the total industrial output of the United States last year was lower
than in 1921 (without any allowance for long-time trend) and was at the
lowest level since 1911. The second is that the ratio of industrial output
to population was back to the level of 1900.
The severity of the decrease is further emphasized by the fact
that the
worst of the decline occurred in the first half of the year. Running closely
parallel with the "Annalist" Index of Business Activity, the Federal
Reserve Board index of industrial production reached its lowest
point in
July at 58% of the 1923-25 average, whence it recovered to 68 in
October
(a rise of 17%) and declined to 65 (preliminary) in November.
To a large extent the explanation of the recent upturn Is to be found in an
understanding of the main causes of the precipitate decline which
occurred
in the first half of the year. There seems to be little doubt that that
decline was caused primarily by the financial panic which seized the country
in the early part of the year. Numerous bank failures, the
widespread
hoarding of currency and heavy gold exports constituted an impassable
barrier to the consummation of all but the most urgent and immediate
kinds of internal trade. With the passing of the panic, commodity prices
rose sharply and deferred demand asserted Itself in commodities
such as
textiles and boots and shoes which pass quickly from the factory to the
ultimate consumer. Gradually this increased activity in consumers' goods
Spread to other industries, though not to the same extent. There was
only a moderate recovery in iron and steel output, building contracts
awarded and similar items indicative of demand for producers' goods. And
the year ended with demand for producers' goods showing a tendency again
to diminish.
In other leading countries, except England, the year 1932 was one in
which industrial production was far below that of 1931 and, of course,
that of immediately preceding years. In England, moreover, production
has declined steadily following the first stimulus to business activity which

Volume 136

Gas Utility Revenues Down 6% in November 1932.
Revenues of manufactured and natural gas utilities totaled
$50,758,132 in November 1932, a decline of 6% from the
same month of the preceding year, according to reports to the
statistical department of the American Gas Association
from companies representing over 90% of the utility distribution of manufactured and natural gas. Continuing, the
Association stated:
As of Nov. 30 1932 the customers of the reporting companies aggregated
13,530,580, as compared with 13,971,984 on the corresponding date of the
preceding year, indicating a loss of 440,000 customers during the 12 month
period.
The manufactured gas companies reported revenues of $29,666.588 for
November, a drop of 8% from a year ago, while revenues of the natural
gas concerns totaled $21.091.544. or approximately 3% less than for
November 1931.
Sales of manufactured gas reported for November totaled 27,995.719,000
cubic feet, a decline of 6.5%, while natural gas sales for the month were
54,617,748,000 cubic feet, a drop of 1.2%.
This decline in sales volume appeared to characertize most sections
of the country, although not to the same extent. In New England November sales were 7.9% under a year ago, while in the Middle Atlantic
States the decline amounted to 5.4%. The curtailment in manufactured
gas sales was especially pronounced in the East North Central States.
comprising Illinois, Indiana, Michigan, Ohio and Wisconsin. Total sales
for November were down 7.8% from a year ago, the result in large part of
a drop of nearly 14% in sales to industrial-commercial users.

Farm Real Estate Taxes Down According to United
States Department of Agriculture—Taxes Per Acre
in 1932 20% Below 1929 Peak.
Farm real estate taxes per acre in 1932 were 20% below
the 1929 peak, but were approximately double the 1913 tax
per acre, according to partial returns in a survey of 23 States
by the Bureau of Agricultural Economics, U. S. Department of Agriculture. These States represent all sections of
the country. In noting this on Jan. 14, the Bureau also said:
Taxes per acre were decreased 6% from 1930 to 1931, and a further reduction the following year brought the tax per acre in 1932 to a figure
19% below that in 1930. The Bureau's estimates represent average tax
levies per acre and do not take into account any increase in tax delinquency.
Average taxes actually paid per acre undoubtedly have decreased more
than these figures indicate, it is stated, because many farmers are unable to
meet their tax payments.
Estimates of decreases in farm real estate taxes per acre have not been
computed by geographic divisions of the country, but the Bureau says
that
present incomplete returns indicate that all regions outside New
England
probably will show appreciable decreases between 1930 and 1932,
adding,
that it appears probable that for New England as a whole there
has been
practically no decrease in taxes levied per acre.

World Expenditures on Account of Unemployment
Relief Put at $20,000,000,000—Italian Government
Delegate at Geneva Parley Urges 40-Hour Week as
Remedy—Belgian Sounds Warning—Workers' Representative Bids Employers Shorten Hours, or
They May Find Storm Breaking.
The world is now expending probably $20,000,000,000 on
unemployment relief, Giuseppe Demichelis, the Italian
Government's delegate, declared on Jan. 14 at Geneva in
strongly urging the adoption of a forty-hour week convention on the preparatory conference that was convened there
on Rome's proposal. A Geneva cablegram Jan. 14 to the
New York "Times," from which we quote, continued:
Summing up the debate of the past five days, he declared that no speaker
had suggested any other practicable remedy for unemployment and said
that unemployed figures understated the position because young people
who would normally be entering trade never find jobs and are not entitled
to a dole because they never have had a job. He opposed the workers' demand that the convention contain provision for maintaining wages.
The Danish Government favored a convention if it were limited to certain industries.
The Belgian workers' delegate, Corneille Mertens, made a deep impression
with figures showing how machines were supplanting men, including the
statement that 100 American brickmakers can now produce all the bricks
the United States needs.




395

Financial Chronicle

resulted from the suspension of the gold standard. The British Board of
Trade's production index on the basis of 1928 equal to 100, rose to 92.3 for
the last quarter of 1931 from 84.6 for the third quarter. In the first
quarter of 1932, however, it decreased to 90.1. dropped to 89.2 in the
second quarter and finally in the third quarter fell sharply to 82.6. Figures
are not available as yet for the final quarter of last year, but judging by the
output of such basic materials as pig iron, steel and coal there was little
Improvement.
In France, where the effects of the depression became evident at a later
date than in many other countries, industrial output declined very rapidly
In the first half of 1932, reaching a low record in July. From then until
November there was a gradual recovery.
Of the three leading European nations, however, only Germany experienced trade recovery in the latter part of 1932 at all comparable with
that which occurred in the United States. Throughout the depression
the course of industrial activity in Germany has formed a pattern closely
similar to that in the United States. Consequently it is not surprising to
find German industrial output working toward decidedly higher levels in
the latter part of the year as in the United States. This improvement
continued through December, when the German index of production, adjusted for seasonal changes, reached a level about 25% higher than in July,
and the highest since August 1931. In December German pig iron output,
adjusted for seasonal variation, was 43% higher than in the low-record
month of August, and in November steel ingot production was 37% higher.

Replying to employers who were complaining of Japanese competition,
Mr. Mertens recalled that when the convention on the eight-hour day was
adopted in 1919 the workers sought to make it applicable to the Far East,
but were defeated in a vote by the unanimous opposition of the European
employers.
Like several other moderate workers' delegates, M. Mertens ended on an
ominous note.
"The employers warn us that the forty-hour week will kill industry.
he said. "I also give a warning. If you can do anything useful, do it
now. To-morrow you may find the storm has broken over your heads
and there will be no opportunity of coming to Geneva and discussing with
us the possibility of shortening hours."

New England Business Still Above July Low Level
According to National Shawmut Bank of Boston.
In its recent summary of New England Business, the
National Shawmut Bank,of Boston,states that after adjustment for seasonal variation, the level of business activity in
New England is still above the low of July. The bank points
out that business in New England responded quickly and
quite energetically to the improvement in business sentiment which followed the returning confidence in the monetary system, the return flow of gold, the adjournment of
Congress, and lower stocks of finished goods. The bank
continues:
On the other hand, the general decline of business activity in New England during November reflected equal sensitiveness to such unfavorable
factors as war debts, the uncertainty of Governmental action regarding
budgets, taxes, legislative measures and the effect of competition of countries
with depreciated currencies.

The textile and leather industries account principally for
the poorer November showing.
Ohio State University Reports Industrial Employment
in Ohio Unchanged During December as Compared
with November.
"Total industrial employment in Ohio in December,"
according to the Bureau of Business Research of the Ohio
State University, "remained unchanged from November,
which is," according to the Bureau, "the usual conditions as
indicated by the average December change during the past
five years." The Bureau also reported the following under
date of Jan. 7:
Employment in the machinery, rubber, vehicles trade and the stone,
clay and glass industries registered gains in December which compared
favoraWy with the five-year average December change. In the food,
lumber, and textiles industries, a decline was noted although the decrease
was not as great as the usual December decline, A greater-than-seasonal
decrease was registered in the chemical, metal products, paper and printing,
service and miscellaneous manufacturing industries. In the transportation
Industry, employment in December showed no change from November,
as compared with the five-year average December decline of 3%. The
19% decline in construction employment in December was equal to the fiveyear average change.
Gains were noted in employment in Akron. Cleveland and Dayton, which
were greater than the five-year average December increase. Employment
In Cincinnati declined 1% in December as compared with the usual decline
of 2%. Although employment in Columbus and Toledo remained unchanged in December from November, the five-year average change is a
gain of 2% and 1%, respectively. Greater-than-average declines were
noted in both Youngstown and Stark County (Canton.)
EMPLOYMENT IN OHIO CITIES, DECEMBER 1932.
In Each Series Average Month 1926 Equals 100.
(Based on the number of persons on the payroll on the 15th of the month or nearest
representative day as reported by co-operating !Irmo.)

City and Industry.

Aver.
Change Change Change
Index Dec. Dec. Dec.
Dec. 1932 from 1932
1932. from Nor. from
Nov. 1927- Dec.
1932. 1931. 1931.

Akron—
Industrial
Manufacturing
Non-manufacturing,
Construction
Cincinnati—
Industrial
Manufacturing
Non-manufacturing.
Construction
Cleveland—
Industrial
Manufacturing
Non-manufacturing _
Construction
Columbus—
Industrial
Manufacturing
Non-manufacturing _
Construction
Dayton—
ndustrlal
Manufacturing
Non-manufacturing _
Construction
Toledo—
Industrial
Manufacturing
Non-manufacturing _
Construction
Youngstown—
Industrial
Manufacturing
Construction
Stark County—
Industrial
Manufacturing
Non-manufacturing,
Construction

Number of Concerns
Reporting.
Ayer.
Jan.
Dec.
In- DeChange
crease crease No
from Total, from from Ch'ge.
1931.
Nov Nov.

%

%

%

%

62
61
61
14

+2
+1
+26
—12

0
0
+11
—26

—10
—10
—7
—47

—10
—9
—12
—59

37
24
3
10

8
5
2
I

22
18
1
3

7
1
0
6

74
71
86
22

—1
—3
+4
—17

—2
—3
+3
—12

—10
—9
—7
—58

—14
—17
—7
—43

113
80
18
15

42
29
9
4

56
38
8
10

15
13
1
1

66
63
80
26

+6
+3
+21
—25

+1
0
+6
—20

—15
—15
—9
--17

—19
—20
—10
—48

163
114
15
34

58
41
7
10

91
66
8
17

14
7
0
7

69
66
75
18

0
—4
+13
—21

+2
—1
+8
—11

—8
—9
—1
—65

—9
—10
—3
—30

50
39
3
8

18
13
3
2

24
19
0
5

8
7
0
1

75
76
88
10

+4
+5
+6
—40

+2
+1
+7
—12

—19
—20
—13
—70

—17
—17
—19
—56

53
35
6
12

18
10
3
5

27
20
2
5

8
1
1
2

64
61
77
8

0
—3
+11
—23

+1
+2
+7
—19

—15
—16
—9
—58

—24
—25
—15
—58

48
36
5
7

15
10
2
3

27
22
3
2

8
4
0
2

46
43

—2
—2

—1
—1

—14
—13

—26
—27

17
12

3
2

9
7

5
3

15

—7

—22

—52

—67

5

1

2

2

44
43
69
20

—5
—6
+2
+4

—2
—1
+I
—28

—25
—26
—22
+7

—31
—32
—11
—51

40
27
4
9

12
7
1
4

21
18
0
3

7
2
3
2

Financial Chronicle

396

INDUSTRIAL EMPLOYMENT IN OHIO.
In Each Series Average Month 1926 Equals 100.
(Based on the number of persons on the payroll on the 15th of the month or nearest
representative day as reported by co-operating firms.)

Industry.

Ayer.
Change Change
Index Dec. Dec.
Dec. 1932 from
1932. from
Nov.
Nov. 19271932. 1931.

Number of Concerns
Reporting.
Change Aver.
Dec. Jan.
In- De1932 Dec.
from Change
crease crease No
Dec. from Total, from from Ch'ge.
Nov. Nov.
1931. 1931.

Jan. 21 1933

Considering obsolescence, depreciation and growing population, a housing
shortage is surely developing in the metropolitan area. Whether 1933 will
see any great increase in new residence construction will depend largely
upon credit conditions and upon the upturn of employment. There are few
large buildings on the architects' boards at the present time, the TimesMirror building and the Federal building being the only outstanding projects in sight for the near future. Forecast is thus difficult, but it is hard to.
believe that 1933 can drop below the past year in volume of new building.
The comparative figures for the past two years are as follows*
931.

Chemicals
Food products
Bakery
Miscellaneous_ - _ Lumber products_ _ _
Furniture
Miscellaneous _ _ _ _
Machinery
Electrical mach'Y.
apparatus and
supplies
Machine tools__ _
Mat'l handling and
power machinery
Special purpose machin'Y & appl'ces
Metal products
Fdy. products and
drop forgings__ _
Pipes,pumps.val's.
Plumbers'suppls.
Screw machine products&hardware
Sheet metal works_
Steek works and
rolling mills
Stoves & furnaces_
Miscellaneous_
Paper and printing
Paper.incl.stat'ery
Ptg.& publishing
Miscellaneous_ _
Rubber products....
Tires and tubes.-Mkmellaneous
Stone. clay and glass
products
Brick and tile....
Glass
Vitreous and semivitreous china 4,
pottery
Miscellaneous.
Textiles
Men's clothing
Miscellaneous _ .._.
Vehicles
Autos and parts_Cars, steam and
street railway_ _
Miscellaneous_ __ _
Misc. manufacturing
Total manufg_.

%
-2
-1
-2
-1
-1
-1
-3
A-1

%
-1
-3
-1
-4
-4
-6
-3
-2

%
-13
-1
-9
+3
-10
-9
-11
-23

%
-11
-8
-6
-9
-17
-17
-13
-26

19
49
18
31
30
16
14
99

2
18
4
14
12
8
4
30

14
24
11
13
12
6
6
61

3
7
3
4
6
2
4
18

.4-2
+6

-5
0

-19
--37

-20
-39

27
18

6
8

16
8

5
2

39

+4

-1

-22

-38

10

5

4

1

52
51

-3
-5

0
--I

-25
-17

-23
-21

44
144

11
48

23
82

10
14

78
106
103
107
55
64
46
58
87
34

49

-1

-1

-13

-19

28

7

16

40

-3

-4

-31

-32

18

3

13

5
2

53
62

o
-13

0
-2

-7
-18

-13
-22

19
17

9
7

6
10

4
0

45
80
63
89
87
96
77
59
58
74

-3
-14
-3
-2
-1
-2
-4
+1
+1
-7

+1
-9
-1
0
0
0
-1
0
0
-4

-22
-7
-10
-10
-12
-6
-16
-9
-10
A-10

-24
-11
-13
-9
-11
-7
-11
-8
-8
-12

13
15
34
48
10
26
12
21
13
8

6
0
16
11
1
9
1
4
2
2

7
15
15
29
6
14
9
15
9
6

0
0
3
8
3
3
2
2
2
0

56
28
123

+3
-3
+12

-6
-10
-4

-8
-36
+7

-21
-33
-13

56
23
11

19
5
7

28
14
4

9
4
0

63
39
88
99
80
53
58

A-10
-11
-1
-1
-1
+2
+4

-2
-6
-2
-2
-2
+1
+4

1-38
-9
+4
+3
+7
-20
-18

-20
-21
-7
-4
-8
-28
-27

7
15
42
16
26
51
40

3
4
14
5
9
21
18

3
7
27
10
17
26
20

1
4
1
1
0
4
2

20
35
81

+5
-24
-6

-2
-8
-3

-28
-34
-9

-42
-29
-9

5
6
36

2
1
11

2
4
20

1
1
5

61

-2

-1

-14

-13

595

190

328

77

79
92

+10
-2

+5
--I

-9
-7

-11
-9

76
38

32
11

31
17

13
10

98
71
25

+22
0
-19

+17
-3
-19

-2
-16
-34

-7
-14
-40

21
17
126

18
3
34

3
11
62

0
3
30

15
17

-5
-13

-12
-15

-25
-44

-61
-53

7
70

3
20

4
30

0
20

Non-manufacturing _
Service
Trade (retail and
wholesale)
Transp.& pub.utils
Construction
Brick, stone and
cement work...
Gen'l contracting_
Plumbing & steam
fitting
Street. road and
sewer work
Miscellaneous....

40

+1

-7

-43

-50

10

4

3

3

30
67

-62
-9

-43
-10

-49
-17

+4
-27

19
20

2
5

12
13

5
2

All Indnatrleg

63

0

0

-14

-17

797

259

421

120

Usual Seasonal Slack Noted in Some Lines of Business
in Los Angeles During December by Los Angeles
Chamber of Commerce-Employment Lower Due to
Seasonal Conditions-Building Permits Also Lower,
The Los Angeles Chamber of Commerce,in its "Southwest
Business Review" states that "December business, while
showing the usual seasonal slack in some lines, displayed a
creditable resistance to further decreases in retail and
The last two weeks, especially," according
whole's-De
t,radeT.
to the Chamber, "saw many stores doing a larger dollar
volume of business than during the same period of 1931.
Christmas trade brought home the fact that many stores
are maintaining inventories very close to the danger mark."
In its "Review" the Chamber also reported the following:
December bank debits were 9% higher than those for November, with a
drop of 25% from last December's record. Stock Exchange transactions
were also 9% higher than during the previous month, and 69% below last
December's. Building permits fell off 20% from November's, and were
66% lower than during the corresponding month of 1931. Postal receipts
in November dropped 8% from the October figures.
Employment went down slightly, due to seasonal slowing up. Retail and
wholesale trade decreased somewhat in November. Among the important
industries reports show the month of December to have been a slow one,
but the general outlook for the coming year to be good.
Agriculture and livestock held steady during the month, to complete a
year characterized by low prices, adjusted costs, and efforts to market
crops which were, on the whole, good in quantity and quality. Water
' commerce returned December figures that were slightly lower than last
December, but higher than in November 1932.
Building Permits.
New construction during December dropped 20% from that of last
month and just escaped the low for the past 10 years set during August of
this year. Compared with a year ago, the decrease in value was 66%. while
the number of permits declined nearly half.
The year 1932 was the lowest in new building since the war-time slack of
1918. The decline from last year was 57% in value and 37% in number of
permits. Indicative of the nature of the construction is the fact that the
value per permit was the lowest in several years, being only slightly over
81,000.




Number.
January
February
March
April
May
June
July
August
September
October
November
December
Year's total

1932.

Value.

Number.

2,063
1,889
2,609
2,339
2,200
2,100
2,088
2,404
2,708
2,800
2,184
1.893

83,790,283
3,670,782
4,272.107
3,413.850
3,095,700
4,460.040
3,751,072
3,069,847
3,097,453
3,459,905
2,539,258
2,590,563

1,522
1,420
1,878
1,467
1,352
1.424
1,213
1,420
1,674
1,$07
1,256
981

27,277

$41,210,860

17,114

Value.
$1,862,171
1,958,266
3,464,480.
1,531,814
1,174,039.
1,045,918
1,011,811
859,118
1,373,037
1,253,450
1,107,026
865,476
817,506.606

Employment.
Seasonal quietness in most industrial lines due to preparations for the
next buying period and the off-season lull in packing industries, brought the
Chamber of Commerce Index of Industrial Employment down below the
levels of the past three months. However, it is substantially above the levels
of late spring and summer.
Declines were uniform in all of the 10 reporting lines, with the smallest
decreases evident in printing and lithographing, and furniture and fixtures.
Compared with a year ago, the largest declines have occurred in iron and
steel, rubber, and clay products.
A review of the following figures covering the past two years, shows a
constant decline from January 1931 until June 1932. Since that time the
movement has been up and down with the trend being upward over the
six months' period.
Based on the experience of the past six years, the first three months of
1933 should see little change in the level of the index. This should be
followed by a moderate peak during April and May, with the usual summer
valley following.
Following are the comparative figures for the past two years:
January
February
March
April
May
June

1931.
80.0
71.2
73.7
70.6
65.1
66.7

1932.
59.0
59.2
60.7
63.6
62.0
54.6

July
August
September
October
November
December

1931.
71.3
66.2
65.6
71.0
73.7
67.4

1932.
58.7
55.3
74.6
63.9
63.6
62.0

Business and Agricultural Conditions in Minneapolis
Federal Reserve District-Decrease Noted in
Volume of Business During December as Compared
with December 1931.
"The December volume of business in the Ninth (Minneapolis) Federal Reserve District was smaller than the volume
in December 1931 in nearly all lines," according to the
preliminary summary of agricultural and business conditions
prepared by the Federal Reserve Bank of Minneapolis. "The
trend of business in December compared with November was
mixed," states the summary under date of Jan. 18, "after
allowance for seasonal fluctuations." The following was also
contained in the summary:
The adjusted index of bank debits declined, but the adjusted indexes of
country check clearings and miscellaneous and Lc.I. freight carloadings rose.

This increase was most pronounced in freight carloadings of miscellaneous
commodities, for which the index rose from 55 to 59 and reached the highest
level since February 1932.
Declines in December as compared with December last year occurred In
bank debits, freight carloadings, building permits, electric power consumption, shipments of linseed products. livestock marketing and department store sales. Increases from last year's totals were reported for grain
marketings and flour shipments from Minneapolis. City department stores
reported that a slightly larger percentage of their holiday sales were cash

sales in 1932 than in the two preceding years.
The farmers' cash income in December did not show as great a reduction
from the total for the same month last year as had been shown in the
preceding month. Farm income from seven important items was 29%
smaller in December than in the corresponding month last year, whereas
the reduction in November was 42%. The better showing of farmers'
cash income was general among the various individual commodities sold,
and was especially pronounced in wheat, where the larger volume of sales
in 1932 more than offset the shrinkage in 'price. Prices of all important
farm products in the Northwest, with the exception of lambs and eggs,
were lower in December than a year ago.
ESTIMATED VALUE OF IMPORTANT FARM PRODUCTS MARKETED
IN THE NINTH FEDERAL RESh,RVE DISTRICT.

Bread Wheat
Durum Wheat
Rye
Flax
Potatoes
Dairy products
Hogs
Total of seven items

Dec. 1932.

Dec. 1931.

% Dec. 1932
of Dec. 1931.

$2,818,000
414,000
96.000
434,000
190,000
7,521,000
5,961,000

$1,700,000
317,000
117,000
476,000
292,000
10.519,000
11.033,000

166
131
82
91
65
71
54

$17,434,000

324,454.000

71

Lumber Orders Increase Over Previous Week.
New business at the lumber mills of the country during
the week ended Jan. 14 increased 24% over the previous
week (containing the New Year holiday) and production
increased 22%, according to telegraphic reports to the
National Lumber Manufacturers Association froin regional

Volume 136

Financial Chronicle

associations covering the operations of 767 leading hardwood
and softwood mills. The previous week's report was from
787 mills. During the week ended Jan. 14, production
totaled 89,647,000 feet, which was 18% of capacity. New
business amounted to 108,483,000 feet or 22% of capacity,
compared with 17% the week before. The National Lumber
Manufacturers Association further reports as follows:
All associations reported new business in excess of production, the
aggregate for softwoods being 20% above output and for hardwoods 35%
above.
Compared with corresponding week of a year ago. Southern pine production was 18% greater and Western pine production 1% above. Southern
pine reports showed now business this year 13% in excess of that of the
corresponding week of last year; all other regions reported orders less than
last year. For all softwoods, production was 5% and orders 19% below
last year's week; for hardwoods, production was 24% less and orders
40% less.
Stocks at the mills on Jan. 14, were the equivalent of 99 days' average
production of the reporting mills, compared with 131 days' average production on Jan. 16 1932.
Forest products loadings during the week ended Jan. 7 were 30% higher
than the previous week, both periods containing a holiday.
Lumber orders reported for the week ended Jan. 14 1933, by 411 softwood
mills totaled 97,356,000 feet, or 20% above the production of the same mills.
Shipments as reported for the same week were 83,509,000 feet, or 3% above
production. Production was 81,385,000 feet.
Reports from 371 hardwood mills give new business as 11.127,000 feet,
or 35% above production. Shipments as reported for the same week were
13,452,000 feet, or 63% above production. Production was 8,262,000 feet.
Unfilled Orders.
The 358 identical softwood mills report unfilled orders as 367,845,000
feet on Jan. 14 1933, or the equivalent of 12 days' average production, as
compared with 430,055,000 feet, or the equivalent of 14 days' average
production on similar date a year ago.
Last week's production of 402 identical softwood mills was 79,567,000
feet, and a year ago it was 84,195,000 feet; shipments were respectively
83,199,000 feet and 114,835,000; and orders received 96,716,000 feet and
119,207,000. In the case of hardwoods, 199 identical mills reported production last week and a year ago 7,055.000 feet and 9,257,000; shipments
11,074,000 feet and 15,509,000; and orders 8,743.000 feet and 14,686,000.
West Coast Movement.
The West Coast Lumbermen's Association wired from Seattle the following new business, shipments and unfilled orde-s for 178 mills reporting for
the week ended Jan. 14:
NEW BUSINESS.
SHIPMENTS.
UNSHIPPED ORDERS.
Feet.
Feet.
Feet.
Domestic cargo
Coast Es Ise and
Domestic cargo
delivery_.... _ 19.496,000 delivery_ _ _ 94,858,000 intercoastal _ 15,851,000
Export
89,872,000 Export
15,681,000 Foreign
15,907,000
Rail
45,512,000 Rail
12,574,000 Rail
11,127.000
Local
Local
3,404,000
3,404,000
Total
230,242,000 Total
46,289,000
51,154,000 Total
Production for the week was 47,486,000 feet. Production was 21%,and
new business 23% of capacity, compared with 18%. and 20% for the
previous week.
Southern Pine.
The Southern Pine Association reported from New Orleans that for 107
mills reporting, shipments were 13% below production, and orders 15%
above production and 32% above shipments. New business taken during
the week amounted to 24,580,000 feet, (previous week 16,013,000 at 103
mills); shipments 18,652,000 feet, (previous week 15,606,000); and production 21,395,000 feet, (previous week 17.974,000). Production was 34%
and orders 39% of capacity, compared with 30% and 27% for the previous
week. Orders on hand at the end of the week at 106 mills were 57,563.000
feet. The 106 identical mills reported an increase in production of 18%,
and in new business an increase of 13%, as compared with the same week a
year ago.
Western Pine.
The Western Pine Association reported from Portland, Ore., that for
104 mills reporting, shipments were 37% above production, and orders
62% above production and 19% above shipments. New business taken
during the week amounted to 19,778,000 feet (previous week 16,186.000
at 116 mills); shipments 16,667,000 feet (previous week 15,369,000); and
production 12,200,000 feet (previous week 8,775,000). Production was 9%
9% and orders 15% of capacity, compared with 7% and 13% for the
previous week. Orders on hand at the end of the week at 103 mills were
94,929,000 feet. The 102 identical mills reported an increase in production
of 1%. and in new business a loss of 39%,as compared with the same week
a year ago.
Northern Pine. ,
The Northern Pine Manufacturers of Minneapolis, Minn., reported no
production from seven mills, shipments 1,016,000 feet and new business
1,105,000 feet. The same mills reported new business 2% less than for the
same week last year.
Northern Hemlock.
The Northern Hemlock and Hardwood Manufacturers Association, of
Oshkosh, Wis., reported production from 15 mills as 304,000 feet, shipments 885,000 and orders 739,000 feet. Orders were 15% of
capacity
compared with 4% the previous week. The 15 identical mills reported a
decrease of 63% in production and a decrease of 26% in new business,
compared with the same week a year ago.
Hardwood Reports.
The Hardwood Manufacturers Institute, of Memphis, Tenn., reported
production from 356 mills as 7,965,000 feet, shipments 12,967,000 and new
business 10,811,000. Production was 13% and orders 18% of capacity,
compared with 10% and 15% the previous week. The 181 identical mills
reported production 24% less and new business 40% less than for the same
week last year.
The Northern Hemlock and Hardwood Manufacturers Association, of
Oshkosh, Wis., reported production from 15 mills as 297,000 feet, shipments 485,000 and orders 316,000 feet. Orders were 4% of capacity,
compared with 19% the previous week. The 15 identical mills reported
a loss of 8% in production and a loss of 52% in orders, compared with
the same week last year.

1932 Lumber Output 41% Below That for 1931—
Shipments Off 33%—Orders Received Declined 31%.
According to the National Lumber Manufacturers Association, Inc., an average of 599 mills reported to the National




397

Lumber Trade Barometer a production of 5,444,819,000
board feet for the 52 weeks ended Dec. 31 1932, as against
9,275,809,000 feet during the 52 weeks ended Jan. 2 1932,
or a decrease of 41%. Shipments declined from 10,154,603,000 feet for the 1931 period to 6,832,020,000 feet for
the year 1932, or a falling off of 33%. Orders received
also were lower for the 52 weeks ended Dec. 31 1932, amounting to 6,776,853,000 feet, compared with 9,830,527,000 feet
for the previous 52-week period, and represents a reduction
of 31%. Comparative statistics follow:
PRODUCTION, SHIPMENTS AND ORDERS FOR 52 WEEKS ENDED
DEC. 31 1932 AND JAN. 2 1932.
Actual Production (Board Feet).

Association.

:Mills
Reporttog.

52 Weeks
1932.

52 Weeks
1931.

1932 %
of 1981.

Softwoods—
Southern Pine
West Coast Lumbermen's
Western Pine
Northern Pine Manufacturers
Northern Hemlock & Hardwood

104
201
109
7
19

1,006,605.000
2,722,553,000
1,269,315,000
27,283,000
19,623,000

1,395,502.000
4,771,590,000
2,163,068,000
99,399,000
87,559,000

72
57
59
27
22

440

5,045,379,000

8,517,118,000

59

159
19

372,567.000
26,873,000

663,729,000
94,962,000

56
28

Total softwoods
Hardwoods—
Hardwood Mfrs. Institute
Northern Hemlock & Hardwood
Total hardwoods

178

399,440,000

758,691,000

53

Grand total

599

5,444,819,000

9,275.809.000

59

Association.

Softwoods—
Southern Pine
West Coast Lumbermen's
Western Pine
Northern Pine Manufacturers _
Northern Hemlock dr Hardwood
Total softwoods
Hardwoods—
Hardwood Mfrs. Institute
Northern Hemlock & Hardwood

:Mills
Reporting.

52 Weeks
1931.

1932 %
011931.

104
201
109
7
19

1,220,994,000
3,097,143,000
1,762,107.000
95,013,000
42,277,000

1,552,025,000
5,008.711,000
2,502,913.000
128,254.000
63.018,000

79
62
70
75
67

440

6,217,534,000

9,252,921,000

67

159
19

550,490,000
63,996,000

803,490,000
98,192,000

69
65

614,486,000

901,682,000

68

6,832,020,000 10,154.603,000

67

Total hardwoods

178

Grand total

599

Association.

Softwoods—
Southern Pine
West Coast Lumbermen's
Western Pine
Northern Pine Manufacturers_ _
Northern Hemlock & Hardwood
Total softwoods
Hardwoods—
Hardwood Mfrs. Institute
Northern Hemlock & Hardwood

Shipments (Board Feet).
52 Weeks
1932.

x Mills
Report
inc.

Orders (Board Feet).
52 Weeks
1932.

52 Weeks
1931.

1932 %
01 1931.

104
201
109
7
19

1,222,815,000
3,083,528,030
1,752,762.000
86,648,000
39,530,000

1,519,493.000
4,795.334,000
2,436,042,000
122,480,000
58,879,000

64
72
71
67

440

6,185,283,000

8,932,228,000

69

159
19

533,016,000
58,554,000

799,982,000
98.317,000

67
60

so

Total hardwoods

178

591,570,000

898,299,000

66

Grand total
z Average weekly number.

599

6,776,853.000

9,830.527,000

69

Crude Rubber Consumption Lower in December 1932—
Imports Higher than in Preceding Month.
Consumption of crude rubber by manufacturers in the
United States for the month of December 1932 amounted
to 16,990 long tons. This compares with 21,910 long tons
for November 1932 and represents a decrease of 22.5%,
according to statistics released by the Rubber Manufacturers
Association. Consumption for December 1931 was reported to be 21,409 long tons. Consumption for 1932
amounted to 313,122 long tons as compared with 348,986
long tons in 1931.
Imports of crude rubber for the month of December 1932
totaled 28,567 long tons, an increase of 5.5% above November 1932, although 45% below December 1931.
The Association estimates total domestic stocks of crude
rubber on hand Dec. 31 1932 at 388,229 long tons, which
compares with Nov. 30 stocks of 377,996 long tons. December stocks show an increase of 2.7% as compared with
November of this year, and 20.3% above the stocks of
Dec. 31 1931.
The participants in the statistical compilation report
38,360 long tons of crude rubber afloat for the United
States ports on Dec. 31, compared with 40,879 long tons
afloat on Nov. 30 1932 and 40,455 long tons afloat on
Dec. 311931.
Production and Shipments of Pneumatic Casings and
Inner Tubes Fell Off During November 1932—
Inventories Again Increased.
Shipments of pneumatic casings for the month of November 1932 amounted to 1,711,298 casings, a decrease
of 4.9% under October of that year, and 40.7% below
November 1931, according to statistics estimated to repro-

398

Financial Chronicle

jan. 21 1933

sent 100% of the industry, as released by the Rubber Mann
facturers Association, Inc. Production of pneumatic casings
for November 1932 totaled 2,303,545 casings, a decrease
of 10.3% under October of that year and 7.9% below
November 1931. Pneumatic casings in the hands of manufacturers Nov. 30 1932 amounted to 7,454,443 units, an
increase of 8.4% above Oct. 31 1932 stocks, but were 5.9%
under Nov.30 1931. The actual figures are as follows:

Production and Value.
Cars and trucks produced in U.S.and Canada
1,436,000.
Passenger cam
1,198,500.
Motor trucks
237,500
Production of closed cars
1,115,000
Per cent closed cars
93%
Wholesale value of cars
$646,500,000
Wholesale value of trucks
$138,000,000.
Wholesale value of cars and trucks combined
$784,500,000
Average retail price of cars
$720.
Average retail price of trucks
$776
Tire shipments
41,150,000'
Wholesale value of parts and accessories for replacements,
and service equipment
8250,000,000.
PRODUCTION AND SHIPMENT OF PNEUMATIC CASINGS.
Wholesale value of rubber tires for replacement
[From figures estimated to represent 100% of the industry.(
Motor vehicles, accessories, service equipment and replace- $275,000,000
ments of parts and tires
$1,309.500,000.
Gasoline consumption by motor vehicles, retail value inShipments.
Inventory.
Production.
I
cluding taxes
$2.382,000,000.
Lubricating
oil
used,
retail
value
November 1932
1,711,298
7,454,443
$359,100,000
2.303,545
October 1932
1,799,136
2,568,641
6,875,980
Registration.
November 1931
2.887.464
7,919,034
2,500.788
Motor vehicles registered in U. S.(from State reports)
24,276,000
Motor cars
21.045,000
The Association, in its bulletin dated Jan. 13 1933, gave
Motor trucks
3,231,000
World
registration
of
motor
vehicles
the following data:
33.026.009.
Per cent of world's automobiles in United States
7307
PRODUCTION AND SHIPMENTS OF PNEUMATIC CASINGS AND INNER
Passenger cars on farms
4,100,000
TUBES (BY MONTHS).
Motor trucks on farms
880,000
[From figures estimated to represent 80% of the industry.]
Motor vehicles on farms
4,980,000
Miles of surfaced highways
868,000
Total miles of highways in United States
3,055,000.
Pneumatic Casings.
Inner Tubes.
Highway and street expenditures
$1.900,000,000
Persons employed in motor vehicle and allied lines
3,700.000
InvenOutShiplinenOutShiptory.
put.
menu.
put.
meats.
tory.
Tares.
Total motor vehicle user taxes
$1,085,000,000.
1932Gasoline taxes, Federal, State and municipal
$595,000,000
6,329,417 2,769,988 2,602,469 6,175,055 2,718.508 2,803,369
January
Service station value of gasoline, before taxes
$1,787,500,000
February
7,337,796 3,098,976 2,042,789 7,007,567 3,056,988 2,182,405
Per cent of gas tax to service station value, before taxes
33%
March
7,902,258 2,938,872 2,363,323 7,558,177 2,801,602 2,148,899
Percentage motor user taxes to all taxes from all sources
April
7,876,656 2,813,489 2,958,014 7,552,674 2.579,768 2,708,186
Federal, State and local
12%
May
7,502,953 3,056,050 3,406,493 7,130,625 2,727,462 3,093,593
Automobile's Relation to Other Business.
June
:3.999,260 4,514,663 18,051,932 x4,139,358 4,222,816 17,215.371
Automobile industry Is the largest manufacturing industry
July
4,962,285 2,893,463 1,923,276 4,779,814 2,349,761 1,727,750
products.
2,002,347
based
on
value
of
finished
2,123,890
4,901,884
2,198,560
5,327,179
2,471,361
August
Automotive industry is the largest purchaser of gasoline.
September_ _ 4,876,878 2,030,976 2,465,828 4,602,160 2,081,146 2,478,234
rubber, alloy steel and malleable iron, mohair, upholstery
October
5,500,784 2,054,913 1,439,309 4,970,898 1,749,188 1,326,824
leather, lubricating oil, plate glass, nickel and lead.
5,963,554 1,842,836 1,369,038 5.329,819 1,604.071 1,262,634
November
Number of carloads of automotive freight shipped over
30,481,587 30,745,860
28,089,870 28,949,612
railroads in 1932
Total 11 mos
0.2,57
Ruober use° oy automobile industry
83
1931Plate glass used by automobile industry
55
automobile
industry
7,165,846
2,939,702
2,995,479
7,551,503
2,898,405
3.249,734
Steel
and iron used by
lanuarY
17
7,628,520 3,188,274 2,721,347 9,936,773 3,132,770 2,720,135
Lumber, hardwood, used by automoone industry
February
14
8,011,592 3,730,061 3,297,225 8,379,974 3,559,644 3,031,279
Warch
Copper used by automobile industry
15
8.025,135 3,955,491 3,945.525 8,330,155 3,693,222 3,708,949
Lead used by automobile industry
kpril
, 8,249,856 4,543,003 4,332,137 8,438,799 4,329,731 4,224,594
Way
Aluminum used by automobile industry
20
8,357,768 4,537,970 4,457,509 8,403,401 4,286,467 4,317,543
lune
Nickel used ny automobile industry
26
7,935,565 3,941,187 4,369,526 7,871,801 3,964,174 4,664,964
Tin used by automobile industry
Fitly
12
7,117,037 3,124,746 3,967,987 7,019.217 3,548.335 4,240,403
kunst
Zinc used by automobile industry
6,526,762
2,537,575
3.145,488
2,759,431
6,476,191
3,320,103
Gasoline consumption by motor industry
3eptember
88e,
6,640,062 2,379,004 2,281,322 6,658,913 2,461,578 2,250,494
)ctober
Gasoline used by motor vehicles (bbls. of 42 gals.)
320,000, 0!
govember_ _ 6,335,227 2,000,630 2,309,971 6,495,708 1,954,015 2,075,716
Lubricants used by motor vehicles (barrels)
9,500.000
6,219,776 2,114,577 2,225,036 6,337,570 2,077,704 2,213,261
December
Lubricants, per cent, used by motor vehicles
57%
Crude rubber used by motor industry, 1932 (lbs.)
589,000.
Total
38,992,220 40,048,552
38,666,376 40,017,175
Cotton fabric used in tires, 193.,(pounds)
165,000,000
Motor Trucks.
1930Motor trucks in use
3,231,000.
9,539,353 3,588,862 3,525,404 10,163,267 3,685,410 3,885,717
FanuarY
Number of trucks owned by farmers(27% of all trucks)
880,000.
9,928,238 3,644,606 3,356,104 10,428,968 3.707,066 3.469.919
February
Motor truck owners
2,500,000'
10,010,173 3,890,981 3,773,865 10,543,026 3,952,921 3,781,789
Much
Common carriers, percent of all trucks, inter-State, 1.05%;
10,461,208 4,518,034 4,071,822 11,027,711 4,408,030 3,878,697
Writ
intra-State, 445%
10,745,389 4,573,895 4.173,177 11,081,523 4,428,367 4,058,847
day
Contract carriers, percent of all trucks
8.
10,621,634 4,097,808 4,234,994 10,889,444 3,959,972 4,212,082
rune
Privately owned and operated trucks
85.8%
ruly
9,449,318 3,193.057 4.357,836 9,325,602 3,151,107 4,684,182
Total motor truck taxes
$290,000,000,
8,678,164 3,332.489 4,139,900 8,589,304 3,836,880 4,609,856
kugust
Trucks represent 13% of all motor vehicles, and pay 27% of
7,849,411 2,692,355 3,524,141 8,052,121 3,053,424 3,632,458
ieptember.
an motor taxes.
7,842,150 2,865,933 2,799,440 8,413,578 3,161,048 2,777,965
)ctober
Railroads using trucks as part of shipping service
100,
7.765,786
2,123,089
2,267,465
8,250,432
2,230,654
iovember- 2,143,609
Motor trucks used by steam railroads
12,000,
7,202,750 2,251,269 2,688,960 7,999,477 2,448,195 2,729,973
3ecember
Motor trucks used by Railway Express Agency
9.247
40,772,378 42,913.108
41,936.029 43,952,139
Total
Motor Buses.
Motor buses in use
x Revised.
99,000.
Number of revenue carrier buses
45,000
CONSUMPTION OF COTTON FABRICS AND CRUDE RUBBER IN THE
Consolidated schools using motor transportation
16,700.
PRODUCTION OF CASINGS, TUBES, SOLID AND CUSHION TIRES
consolidated
schools
Buses used by
52.000
AND OUTPUT OF PASSENGER CARS AND TRUCKS.
Buses used by street railways
12,000.
Buses used by steam railroads
4,800.
Street railways using motor buses
245.
Production
Consumption.
Steam railroads using motor buses_ _
80.
Passenger
Cotton
Crude
Foreign Sales.
Cars
Gasoline
Trucks
Rubber
Fabrics
motor
vehicles
sold
American
outside U. S.
Number of
(80%).
(80%).
(100%)• (100%).
(100%)•
(U. S. exports and output In U. S.-owned Canadian
plants)
182,000.
(Gallons.)
Calendar years:
(Pounds.)
(Pounds.)
Per cent decrease in foreign sales under 1931
44%
1926
165,963,182 518,043,062 10,708,068,000 3,929,535 535.006
Per cent of production sold outside United States
13%
parts
and
tires
177,979,818 515,994,728 12,512,976,000 3,093,428 486,952
1927
vehicles,
exported
Value of motor
from
222,243,398 600,413.401 13,633,452,000 4,024,590 576,540
1928
United States and Canada
$93.125,000
1929
208,824,653 598,994,708 14,748,552,000 4,811,107 810,549
Business
in United States.
Motor Vehicle Retail
158,812,462 476,755,707 16,200,894,000 2.939,791 569,271
1930
Total car and truck dealers
39,871
151,143,715 456,615,428 16,941,750,000 2,036,567 435,784
1931
Garages, service stations and repair shops
97,721
First 11 months of:
-------------------------------------stores
Supply
69,179.
410,124
1,938.262
143,212,895 431,610,850 15,659,532,000
1931
-- Total retail outlets, duplications eliminated
103,605
122,988,344 393,480,067 14,480,634,000 1,098,499 225,465
1932
Gasoline filling stations
350,000'
49,201 12,559
7,827,250 24,411 266 1,272,600,000
Month of Nov. 1932
x These figures include Canadian production and cars assembled abroad the
Continental Automobile Co. Creates New Low
parts of which were manufactured in the United States.
Price Field.
WHOLESALE PRICES OF COMMODITIES.

14g

Commodity.

All commodities
Crude rubber (cents per pound)
L Smoked sheets (cents per pound)
It Latex crepe (cents per pound)
Tires (dollars per unit)
kg Balloon (dollars per mat)
Cord (dollars per unit)
Truck and bus (dollars per unit)
Tubes, inner (dollars per unit)

Average Prices.

fatter Numbers.
1926=100.

Nov. Nov. Oct. Nov.
1931. 1932. 1932. 1931.

Nov.
1932.

Oct.
1932.

.035
.040

.035
.040

.047
.050

9.51
4.91
27.57
2.37

9.51
4.91
27.57
2.37

9.59
5.28
31.13
2.43

63.9
7.2
7.1
8.0
44.6
43.2
51.7
45.0
42.1

64.4
7.3
7.2
8.1
44.6
43.2
51.7
45.0
42.1

70.2
9.6
9.6
10.1
46.0
43.6
55.5
5(L8
43.1

Automobile Industry Reviewed in Figures by Alfred
Reeves, Vice-President of National Automobile
Chamber of Commerce-Production of Passenger
Autos in United States and Canada Approximately
1,198,500 Cars-Retail Value of Gasoline Consumed
by Motor Vehicles Reported at $2,382,000,000.
The following statement, showing preliminary facts and
figures of the automobile industry during 1932, was released
by Alfred Reeves, Vice-President of the National Automobile Chamber of Commerce,on. Jan. 7:




The Continental Automobile Co., the only newcomer to
the automobile industry in 1933, enters the field with a
line of four-cylinder and six-cylinder models. Their fourcylinder Beacon creates a new low-price field. Details or
prices and models are as follows:
Beacon.-The roadster, $355; commercial coupe, $380; two-door sedan,
$380, and four-door sedan, $395.
Flyer (light six).-Roadster, $450; coupe, $490; two-door sedan, $510
four-door sedan, $535.
Ace (big six).-Coupe with rumble seat, $725; standard sedan, $745;
De Luxe custom sedan, $815.
All prices are f.o.b. factory.

Motor Fuel Consumption Declined 41,000,000 Barrels.
in 1932.
Decline In consumption of motor fuels in 1932 was not as.
great as the industry had feared, it is indicated by figures
compiled by Fred Van Covern, staff statistician of the
American Petroleum Institute. The total decline amounted
to about 41,000,000 barrels, or 9.2%, as compared with the
1931 figure, and the domestic consumption was only 7.8%.
In 1931 domestic consumption amounted to 407,843,000 bar-

Volume 136

Financial Chronicle

399

rels, which was a new record, and 2.6% increase over 1930.
In 1932 domestic consumption amounted to 376,078,000 barrels: Exports declined from 45,716,000 to 35,831,000 barrels,
a falling off of 21.6%; and the respective totals for 1931
were 453,559,000 and 411,090,000 barrels.
•
The compilation shows that for the first six months of
1932 consumption declined 6.8% for the domestic uses and
7.3% for the total. In all of the other months of the year,
with the exception of November, the decline was much
greater, reaching a height of 15% in August. Less motor
fuel was consumed in December than in any other month,
but the decline for both domestic and total consumption
was only 11.4%.

duction of these fabrics in the United States. This report represents yardage
reported to our Association and The Cotton-Textile Institute, Inc. It is a
consolidation of the same 23 groups covered by our reports since October
1927. The figures for the month of December cover a period of five weeks.
December 1932
(5 Weeks.)
Production was
292,359,000 yards
Sales were
321,314,000 yards
Ratio of sales to production
109.9%
Billings were
277,943,000 yards
Ratio of billings to production
95.1%
Stocks on hand Dec. 1 were
200.144,000 yards
Stocks on hand Dec. 31 were
214,560,000 Yards
Change in stocks
Increase 7.2%
Unfilled orders Dec. 1 were
336,544.000 yards
Unfilled orders Dec. 31 were
379,915,000 yards
Change in unfilled orders
Increase 12.9%

Argentines Fight Cut in Wheat Area-Reported as Renouncing Proposed Agreement at Geneva with
United States, Canada and Australia.
A cablegram as follows from Buenos Aires Jan. 14 is from
the New York "Times."

Census Report on Cotton Consumed in
December Larger
Under date of Jan. 14 1933, the Census Bureau issued its
report showing cotton consumed in the United States,
cotton on hand, active cotton spindles and imports and
exports of cotton for the month of December 1932 and 1931.
Cotton consumed amounted to 440,062 bales of lint and
44,275 bales of linters, compared with 503,722 bales of lint
and 52,325 bales of linters in November 1932, and 415,401
bales of lint and 45,911 bales of linters in December 1931.
It will be seen that there is an increase over December 1931
in the total lint and linters combined, of 23,025 bales, or
3.66%. The following is the official statement:

The so-called Argentine thesis for an agreement among Argentine, Australia, Canada and the United States to reduce wheat acreage has aroused
the active opposition of Argentine newspapers and agrarian organizations,
despite the fact that the proposal was presented to the Preparatory Commission of the World Economic Conference at Geneva this week by the Argentine member on the suggestion of the Argentine Minister of Agriculture.
The newspaper opposition is led by La Prensa, which says Argentina has
had no part in the farm protectionist policy and other "artificial measures"
which it charges are responsible for the present overproduction. Argentina. it points out, is the only one of the four countries mentioned where
wheat acreage was reduced as prices fell.
Argentina's wheat sowings for the five years, 1924 to 1928 inclusive.
averaged 22,125,600 acres, but this was reduced to less than 16,800,000
acres last year, whereas Canada last year planted 1,598,400 acres more than
the previous five years, it is held. The average for the United States is
given as 1,922,400 more under the stimulus of "uneconomic pools or Farm
Board measures which prevented a natural reduction in response to falling
prices and added to the already top-heavy unsalable surplus."
Those opposing the agreement to reduce acreage argue that Argentine
farmers. who have gone through a period of falling prices unassisted, should
not now be further penalized to lighten the burden of Australian, Canadian
and American farmers.
It is further pointed out that Argentina is the only big wheat producer in
a position to continue to fight her way through the price crisis, because she
is the cheapest producer, her present prices representing only about a 10%
loss to the farmers, whereas North American prices "do not cover more than
half the cost of production."
The present tendency of Argentine farmers to increase their wheat acreage
without artificial stimulants is said to indicate that their sacrifices have
reduced costs to the level where they can continue to produce at present
prices. It is believed, therefore, that Argentina is the beet prepared to
win the wheat war and take a leading export position.
Argentina had to carry over from last year 15,589,000 bushels. She
began the new year with an exportable stock of 151,268.000 bushels, compared with 136,672.000 bushels last year.

Distribution of United States Beet Sugar Decreased
26,028 Tons During December When Compared
with December 1931.
United States beet sugar distribution for the month of
December 1932 amounted to 72,238 long tons, raw sugar
value, according to a report received by B. W. Dyer & Co.,
sugar economists and brokers, from the Domestic Sugar
Bureau. This is a decrease of 26,028 tons compared with
December 1931. In announcing the foregoing, under date
of Jan. 14, Messrs. Dyer & Co. said that distribution for
the year 1932 amounted to 1,211,750 tons, a decrease of
34,859 tons, compared with the distribution during 1931.
Production, Sales and Shipments of Cotton Cloth in
December as Reported by Association of Cotton
Textile Merchants of New York-Supply of Stocks
for End of Year Lowest on Record for That Period.
Reversing the customary seasonal trend of recent years,
December sales of Carded Cotton Cloths were 109.9% of
production, according to the monthly report of production,
billings and sales made public Jan. 16 by the Association of
Cotton Textile Merchants of New York. The figures cover
a period of five weeks. The report as issued by the Associa
tions, follows:
Sales during the month of December were 321.314,000 yards with production at the rate of 58.473,000 yards weekly, totalling 292,359,000 yards.
Billings were 277,943,000 yards, or 95.1% of production. Stocks at the
end of the month were 214,560,000 yards, an increase of 7.2% during the
period. Unfilled orders increased 12.9% to 379.915,000 yards.
For the calendar year of 1932, sales totalling 2,887.190,000 yards were
104.8% of production which amounted to 2.753,626,000 yards. Billings
were 2.829.314,000 yards, or 102.7% of production.
Stocks were reduced 75,688,000 yards, or 26-1% during the year to the
lowest end of year supply on record. Unfilled orders increased 18%,
or 57,876,000 yards to the highest December figure since 1929.
These stitisties are compiled from data supplied by 23 groups of manufacturers and selling agents reporting to The Association of Cotton Textile
Merchants of New York and The Cotton Textile Institute, Inc. These
groups report on more than 300 classifications or constructions of Carded
Cotton Cloths and represent the major portion of the production of these
fabrics in the United States.
Production Statistics-December 1932.
The following statistics cover upwards of 300 classifications or construe..
lions of Carded Cotton Cloths, and represent the major portion of the pro-




DECEMBER REPORT OF COTTON CONSUMED, ON HAND,IMPORTED
AND EXPORTED, AND ACTIVE COTTON SPINDLES.
[Cotton in running bales, counting round as half bales, except foreign, which is in
500-pound bales.]
Cotton Consumed
Miring-

rear

United States
Cotton-growing States
New England States
All other States
Included AboveEgyptian cotton
Other foreign cotton
Amer.-Egyptian cotton
Not Included AboveLinters

Cotton an Hand
Dec. 31-

Cotton
Fire
In con- In Public Spindles
Months awning Storage
Auks
Ending Establish- dr at Com- During
Dec. Dec. 31. meets. presses.
Dec.
(bales) (bales)
(bales)
(bales) (Number)

j 1932 440,062 2,340,284 1.530,110 10349808 23,775.136
1 1931 415,401 2,191,017 1,630,719 10414412 24,688,094
1932 371,079 1,953,286 1.237,322 9,877,812 16,831,244
1931 344,206 1,796,993 1,298,399 10002235 16,859,194
1932 56,540 320,845 243,863 265,288 6,271,728
1931 58,059 318,002 275,079 190,154 6,838,228
1932 12,443 66,153
48,925 206,708
672.164
1931 13,136
76,022
57,241 222,023
990.672
1932 6,645
35,105
29,540
28,856
1931 6,509
32,479
30,977
13,454
1932 2,681
18,616
14.034
4,371
1931 3,375
21,282
25,000
6,869
1932 1,694
8,756
5,354
10,048
- --- 1 1931 1,315
6,611
7,367
13,993
1 1932 44,275 263.483 280,795
59,874
11031 45,911 288,269 253,049
50,393
Imports of Foreign Cotton (500-1b. Bales).

Country of Production.

December.
1932.

Egypt
Peru
China
Mexico
British India
All other
Total

1931.

4.096
132
6,297

5 Mos. Ended Dec. 31.
1932.

1931.

21,634
2,886
12,183

19
198

4,812
213
1,360
4,960
977
383

861
351

12,765
720
2,568
10,867
6,539
530

10,742

12,705

37.915

33,989

Exports of Domestic Cotton Excluding Linters
(Running Bales-See Note for Linters).
Country to Which Exported.

United Kingdom
France
Italy
Germany
Spain
Belgium
Other Europe
Japan
China
Canada
All other

December.

5 Mos,Ended Dec.31.

1932.

1931.

1932.

1931.

190,091
96,561
93.906
163.461
30,649
27,531
51,432
304,015
41,898
19,682
20,589

163,051
55.116
118,820
179,692
36.308
20,573
45.377
315.002
197,994
16,371
34,817

730,304
508.859
371.216
946,998
147.768
97,572
238,997
938,981
125,562
83,603
58,188

587,751
160,656
323,201
781,857
131,889
78.965
165,761
993,041
651,629
86,688
76,228

Total
1,039.795 1.183.121 4.246,048 4.037.166
Note.-Linters exported, not included above, were 19,129 bales during December
In 1932 and 14,845 bales in 1931: 71,383 bales for
the months ended Dec. 31 In
1932 and 44,307 bales in 1931. The distribution for 5
Dec. 1932 follows: United
Kingdom. 4,990; Netherlands, 1.885: Belgium, 1,345; France, 3,158;
Germany,
4,252; Italy, 765; Canada. 389; Japan. 2,242; Panama, 20; British Honduras,
3:
South Africa, 80.
WORLD STATISTICS.
The world's production of commercial cotton, exclusive of linters, grown in 1931.
as compiled from various sources was 26,329,000 bales, counting American in running
bales and foreign in bales of 478 pounds Lint, while the consumption of cotton (exclusive of linters In the United States) for the year ended July 31 1932,
was approximately 22.896,000 balm. The total number of spinning cotton spindles, both active
and Idle is about 161,000.000.

Petroleum and Its Products-Crude Prices Take Downward Course as Standard of Indiana Posts 25c.
Reduction-All Producing Centers Feel Effect of
Weakening Move-State Bodies Consider Further
Curtailment Steps.
The crude oil price structure tottered this week under a
constant barrage of price cutting, initiated by the Stanolind

400

Financial Chronicle

Jan. 21 1933

"It is proposed," Mr. Ely declared, "that the Government
Crude Oil Purchasing Co., which posted a 250. reduction on
Wednesday, Jan. 18. The new schedule calls for a 520.-top be represented in the making of these forecasts, and that
on all crudes in mid-continent, with East Texas on a flat-price restrictions of a character which might injure the conbasis of 500. a barrel, Pennsylvania crude, for the first time suming public be subject to disapproval. The States, in
since Oct. 3 1931, was reduced, all grades•being cut 15c. per their conservation machinery, have been gradually coming
barrel. The Stanolind cut even extended to Canadian fields, 'into synchronism with each other of their own accord. What
we propose here is a flywheel to insure that the stabilization
Petrolia and Oil Springs both being reduced 25e. a barrel.
The top price in Kansas, North and Central Texas and machinery works evenly." He explained that the proposed
Oklahoma is now 52e. a barrel; East Texas is posted on a 50c. inter-State compact has four objectives: to bring supply
by agreement between State
flat basis, both quotations for 40 and above gravity. Al! of into balance with demand
Federal
the
Government controlling imwith
governments
of
total
a
to
smaller,
the
the major companies, and most of
twenty-one, have met the reductions, which are listed here- portations; a commitment by each jurisdiction to make its
production quota effective; an agreement in general principles
after.
the inter-State agency to draft laws and States
authorizing
California had, up to last night, resisted the crude cuts
if they chose, and certain incidental powers
them
enact
to
the
but
country,
the
of
rest
taking place throughout the
agency, such as collection and exinter-State
the
given
be
situation was reported as extremely serious, and a cut in
change of data on refinery runs and shipments to help cheek
have
schedules
the
is
although
prices
threatened,
California's
tax evasions.
been maintained since June 26 of last year without change.
The Texas Railroad Commission has rejected a proposal
A difficulty on the coast is that while operators have been
by operators of that field that enforcement of
submitted
present
degree,
some
successful in reducing production to
East Texas be placed in the hands of a comin
proration
output continues above market demand.
of three, elected by field operators. An example of
mittee
Almost continuous meetings are being held on the west the utter impossibility of enforcing proration rules under
coast by advocates of proration in a strong effort to bring present systems is illustrated by East Texas production
about a reduction of 30,000 barrels in the daily output. They figures for the first eight days of January, revealing that the
believe that if this can be accomplished, the present scale of output averaged 353,492 barrels daily, as compared with
prices for California crude can be maintained. Scattered the field's allowable of 290,000 barrels daily set by the State
attempts at lowering production are being made, by indi- Commission in its order effective Jan. 1. This production
viduals, but concerted action by the entire producing section averaged 63,942 barrels daily in excess of the amount allowed.
of the industry is declared to be absolutely necessary if
A new bill in the Oklahoma Senate would prohibit waste
California is to evade a collapse of its crude oil price structure. and give the Corporation Commission authority to investiThe reaction of state supervising bodies in the territories gate and determine potentials and regulate production.
affected is reflected in the statement of Paul Walker, chair- The measure would prohibit consideration of allowables on
man of the Oklahoma Corporation Commission, who declares lease basis, but would require the Commission to determine
that he does not see what the Commission can do about the market demand for the State as a whole. Market demand
reduction since its work is to conserve natural resources. He
would be allocated to each pool as the potential of the pool
further stated that he does not "think it fair for interests to
bears to potential of the State as a whole, and per well allooil
and
producers
when
time
a
at
quotations
reduce crude oil
would be on a proportionate basis with its pool. Procation
producing states are doing all they can to keep production
is made that wells less than 3,000 feet deep which
vision
ground."
the
in
oil
the
save
to
curtailed
make more than 10 barrels daily, and those more
not
do
C.
R.
by
explained
The step taken by Stanolind was
feet deep, which make no more than 20 barrels
3,000
than
Ellison, president of the company,asfollows:-"Although this
be operated on full production basis.
could
daily,
notice
Texas,
East
price
in
crude
a
post
company does not
of the week follow:
developments
Price
will be sent out that effective the same date (Wednesday,
Jan. 18.-Stanolind Crude Oil Purchasing Co. posts reduction of 250.
that
in
purchased
crude
for
barrel
a
50c.
pay
will
Jan. 18) we
per barrel in Mid-Continent crude oil, making new top price 52c, a barrel.
with exception of East Texas, where flat price of 50c. per barrel is paid
field.
and above. New schedule met by Carter 011 Co., sub"The reduction in our crude prices is forced by continued for 40 gravity
sidiary of Standard of New Jersey; Shell Petroleum Corp.; Texas Corp.;
Many
of
crude.
movement
in
unsatisfactory conditions
Skelly Oil Co.; Mid-Continent Petroleum; Sinclair-Prairie. and other
purchasers are already openly buying below our prices. Much smaller purchasing companies to a total of 21.
19.-Ohio Oil Co. posts new schedule in Central Western fields,
bootleg crude is moving secretly at still lower prices. Funda- asJan.
follows: Lima,70c.. off 20c.; Illinois, 62c.; Princeton, 62c., and Wooster,
with
because,
consumption
mentally these conditions prevail
70c., all off 25c.; Indiana, 40c., off 12c.
Jan. 19.-Crude prices at Petrolia and Oil Springs fields, Canada, reduced
of gasoline declining, production continues in excess of
250. to new prices of $1.60 top for Petrone and $1.67 top for 011 Springs.
demand.
Jan. 19 -Tide Water On Co. cuts price in Conroe Field, Montgomery
"Cheap crude is made into cheap products that have a far- County, Texas, to a 64c. top. Other purchasers are paying 91c. and 88c.
in that locality.
reaching effect in demoralizing the market for refined prod- topJan.
19.-All grades of Pennsylvania crude cut 15c. a barrel, effective
ucts. Gasoline prices have been chiseled by cut price crude, this day. New prices are: Bradford-Allegheny, $1.57; Central District,
wide
marginal
abnormally
by
and
evasion,
Pennsylvania, $1.27; Eureka, $1.22; Buckeye, $1.07;
tax
southwest
$1.52;
by gasoline
grade in New York transit lines, $1.57.
contracts until they are lower to-day than they were when Pennsylvania
Jan. 19.-Stanolind Crude Oil Purchasing Co. extends its reductions
crude sold in 1931 at the lowest price in many years.
to the Rocky Mountain area, adopting Oklahoma gravity level.
the
of
sincere
spite
in
developed
"These conditions have
Priced of Typical Crudes per Barrel at Wells.
efforts of the great majority of producers and purchasers to
(All gravities where A. P. I. degrees are not shown.)
$052
$1.57 Eldorado, Ark., 40
Bradford, Pa
bring about sound conditions through proration. Unfor- Corning,
.45.
.85 Rusk. Tex.. 40 and over
Pa
for
in
stability
52
nothing
.62 Salt Creek, Wyo.. 40 and over
Illinois
tunately, the small minority who care
.50
Creek
Darst
.57
Western
Kentucky
ly
disproportionate
large
a
exert
to
able
.70
are
industry
Mich
Midland Dist.,
the
Mid-Continent. Okla., 40 and
1.05
.52 Sunburst, Mont
above
influence on the market. There appears to be no effective Hutchinson.
Tex., 40 and over._ _ _ .52 Sante Fe Springs, callt..40 and over 1.00
1.00
.52 Huntington. Calif.. 26
Tex.. 40 and over
way to protect business against their piracy except to meet Spindietop.
1.60
.50 Petrone, Canada
Winkler. Tex
create.
.52
Smackover. Ark., 24 and over
the prices they
pay
more
for
cannot
"We have repeatedly stated that we
REFINED PRODUCTS-PRI E WAR IN LOS ANGELES DISTRICT
crude than other purchasers do or more than can be realized
BRINGS REDUCTIONS IN HIGHER GRADES-COMPANIES
IN EAST INCREASE DISCOUNT ON COMMERCIAL BUSIon the finished products. We have never paid less than our
NESS-GENERAL SITUATION HERE INACTIVE AS TRADE
posted prices for crude."
AWAITS EFFECT OF CRUDE CUTS.
and
radical
enforcable
a
securing
in
step
Meanwhile a new
A price war which is assuming large proportions is in progform of curtailment was urged by Northcutt Ely, legal adreduction
visor to the Federal Oil Conservation Board, who, speaking ress in the Los Angeles, California, district, where a
followed
before the mineral section of the American Bar Association made in the price of third-grade gasoline has been
Corp.,
Texas
grades.
ethyl
and
this
week,
declared
cuts
standard
in
price
cut
lo.
a
the
by
to
prior
Fla.,
at Tampa,
brings
the
cut,
which
made
have
States
oil-producing
the
Standard
and
Richfield,
that an inter-State compact between
for third grade; 16%c. for
9-10e.
12
to
constitutional
method
schedule
only
the
the
price
is
participation
Federal
with
19%c. for ethyl.
of production regulation which would benefit both the standard grade, and
The initial reduction was made in response to price reducproducing States and the consuming public. He held that
independents which in some eases sent third
the proposed compact, for which legislation is now pending tions posted by
a gallon. It is understood that the
103.e.
authoratative
to
source
grade down
in Congress, would create a new and
by the major cOmpany will be temmade
of
demarket
reductions
question
present
all-important
the
on
of information
refuse to adjust their price
independents
the
unless
Federal
the
porary,
Government
that
mand, and it is in this function
adjust the wide spread now existing. If
to
as
so
States.
consuming
schedules
of
protection
the
for
represented
be
would




Volume 136

Financial Chronicle

the independents fail to take such action, the general belief
on the west coast is that the majors will continue to reduce
prices until the situation adjusts itself through economic
force.
The important development of the week in the east coast
markets was the announcement of Standard Oil Co.
of New
York to the effect that effective immediately a discou
nt of
243. a gallon will be allowed off retail gasoline prices
to
vehicles bearing commercial licenses. This new arrangall
ement was first posted by Atlantic Refining Co., and simila
r
discounts have been posted by Standard of New
Jersey and
the Gulf Oil Co. The discount is as follows:-a retail discount in Pennsylvania and Delaware of 2c. a gallon
for 2,000
gallons; in New York, New Jersey, New England and
Maryland lc. a gallon for 2,000 gallons. The present tank
wagon
discount now is 2Mc. a gallon on 20,000 to 100,0
00 gallons;
3c.for 100,000 to 300,000, and 33c. a gallon for 300,0
00 and
more.
Jobbers are extremely backward in making any
commitments now, due to the disturbed condition of the entire
market arising from the further reductions made this week
in
crude oil prices, and the uncertainty of the immediate future
,
insofar as curtailment, production, and price tende
ncy
concerned. Until some definite trend is apparent, refine is
rs
are holding to a range of 53j to 53c. for below 65 octane
,
and 53
/0. for above 65 octane. Some of the smaller factors
have been selling below these figures, but the volume
of
business done on a scale below the general market has
been
insignificant and has exerted no influence on the genera
l
market.
Kerosene is moving in a normal, routine manner, with
41-43 water white held fairly steady at 53'c. a gallon
, in
bulk at refinery. Bunker fuel oil, grade C, is quiet at
75c.
barrel
a
, while Diesel is unchanged at $1.65 a barrel, both
quotations for bulk lots, at refineries.
Price changes follow:
Jan. 16.-Texas Company, Standard of California, and Richfield

Oil
Co. of California, post lc. reductions
in standard and ethyl grades, following an earlier cut of lc. in third grade gasolin effectiv
e,
e in the Los Angeles,
Cal., territory. New prices are:-third
grade, 12 9-10c.; standard grade.
1004 ethyl, 1934c.
New York
Atlanta
Baltimore
Boston
Buffalo
Chicago
Cincinnati

Gasoline, Service Station, Tax Included.
$ 135 Clevel
an
8.165 New
Orleans d$128
19 Denver
18 Philadelphia
12
16 Detroit
.135 San Francisco:
145 Houston
.17
Third grade
139
16 Jacksonville
195
Above 65 octane- _ .180
14 Kansas City
.155
Premium
.214
165 Minneapolis
147 St. Louis
14

Kerosene,4143 Water White, Tank Car Lots,
F.O.B. Refinery.
N.Y.(Bayonne) _..$.0534 I Chicago
3.0234-03341 New Orleans. ex - 5.03)4
North Texas
.03
LO8 Ang., ex - .0414-.06 'Tulsa
.04 M-.03 M
Fuel 011, F.O.B. Refinery or Terminal.
N. Y.(Bayonne)California 27 plus D
Gulf Coast C
15.6
Bunker C
$.75
3.75-1.00 1 Chicago 18-22 D-.42M-.50
Diesel 28-30 D.. 1.65 New Orleans
C
.60 Philadelphia C
.70
Gas 011, F.O.B. Refinery or Termina
l.
N. Y.(Bayonne)-ChicagoI Tulsa
5.0134
28 plus 0 0-$.03M-.041 32-36 G 0
50134 I
U. S. Gasoline, Motor (Above 65 Octane), Tank Car
Lots, F.O.B. Refinery
N. Y.(Bayonne)N.Y.(Bayonne)Chicago
8 04-.0434
Standard Oil, N.J.Pan-Am.Pet. Co_$.06
New Orleans.ex. .05-.0534
Motor. 60 ocShell Eastern Pet_ .0534 Arkansas
04-.0434
tane
1.0534 New YorkCalifornia
Motor, 65 00Colonial-Beacon _ .0534 Lee Angeles. ex. 05-.07
0434-.07
Cane
05,4
Crew Levick
Gulf ports
Motor,standard 0534
05-.053(
Texas
.05M Tulsa
05-.053(
Stand. Oil, N.Y.-- 05%
Gulf
05% Pennsylvania-.0534
Tide Wet. Oil Co.- 0534
Republic Oil
0534
Richfield 011
0534
Warner-Quin. Co. 0534
•Below 65 octane. a "Fire Chid".0534.

A Further Increase Reported in the Production
of
Crude Oil--Gasoline Inventories
Show a Small
Gain.
The American Petroleum Institute estimates that
average gross crude oil production for the week endedthe daily
Jan. 14
1933 was 2,011,050 barrels, as against 1,777,450 barrel
s per
day during the preceding week, an average of 1,878,100
barrels per day during the four weeks ended Jan. 14 1933
and
an average daily output of 2,193,450 barrels for the week
ended Jan. 16 1932.
Stooks of motor fuel at all points increased from 52,24
9,000
barrels at Jan. 7 1933 to 52,264,000 barrels at Jan. 14 1933,
15,00
of
gain
barrel
0
s, as compared with a decline of
or a
90,000 barrels in the previous week.
Reports received during the week ended Jan. 14 1933
from refining companies controlling 91.6% of the 3,856,300
barrel estimated daily potential refining capacity of the
United States, indicate that 1,984,000 barrels of crude oil
daily were run to the stills operated by those companies,
and that they had in storage at refineries at the end of the
week, 35,470,000 barrels of gasoline and 126,472,000 barrels
of gas and fuel oil. Gasoline at bulk terminals amounted to




401

10,986,000 barrels and 1,333,000 barrels were in water borne
transit in or between districts. Cracked gasoline production
by companies owning 95.4% of the potential charging capacity of all cracking units, averaged 379,000 barrels daily
during the week.
The report for the week ended Jan. 14 1933 follows in
detail:
DAILY AVERAGE PRODUCTION OF CRUDE OIL.
(Figures in Barrels of 42 Gallons Each.)

Oklahoma
Kansas
Panhandle Texas
North Texas
West Central Texas
West Texas
East Central Texas
East Texas
Southwest Texas
North Louisiana
Arkansas
Coastal Texas
Coastal Louisiana
Eastern (not incl. Michigan)
Michigan
Wyoming
Montana
Colorado
New Mexico
California
Total
i Daily average production for

Week
Ended
Jan. 14
1933.

Week
Ended
Jan. 7
1933.

Average
4 Weeks
Ended
Jan. 14
1933.

Week
Ended
Jan. 16
1932.

401.150
88,450
44,150
46,900
24,250
159,950
48,300
x268,300
50,250
28,500
32,200
129,900
36,600
94.700
15,050
31,400
5,550
2,800
27,850
474,800

899,250
88,800
42,450
47,500
24,550
156,050
49.250
37,650
52,600
29.200
32,250
131,650
34,750
97,000
18,150
30,400
5,800
2,650
27,900
469,600

388,700
90,000
43,800
47,300
24,350
157,250
49,350
147,350
51,550
28,900
32,600
131,250
34,850
94,000
17,000
31,000
5,700
2,650
27,850
472,650

441,550
99,200
49,200
49,450
25,600
175.250
51,150
333,100
53,350
28,700
34,250
111,350
27,900
107,400
14,700
34,550
5.700
3,550
38,500
509,000

__ 2 011 050 1 777 450 1.878_100 2.193.450
week ending 7 a. m.Monday morning, Jan.9 1933,

CRUDE RUNS TO STILLS. MOTOR FUEL STOCK
S AND GAS AND FUEL
OIL STOCKS FOR WEEK ENDED JAN. 14 1933.
(Figures in Barrels 01 42 Gallons Each.)

District.

Daily Refining Capacity
of Plants.
Potential
Rate.

Crude Runs
to Stills.

Reporting
Total.

Gaily OperAverage. Wed.

aMolor
Fuel
Stocks.

Gas and
Fuel Oil
Stocks.

East Coast
644,700
99.1 396,000 62.0 12,821,000 7,722,000
Appalachian _ _ _ 144,700 638,700
135,000 95.0
83,000 61.5 1,703,000
848,000
Ind., III., Ky_ - 434.900 424,000
Okla.,Kan., hio. 459,300 390,000 97.5 287,000 67.7 7,037,000 3,282,000
Inland Texas_ _ _ 315,300 177,700 84.9 187,000 47.9 4,703,000 2,742,000
56.4
95.000 53.5 1,431,000 2,185,000
Texas Gulf_
555.000 542.000
Louisiana Gulf_ _ 146,000 142,000 97.7 363,000 67.0 6,451,000 6,622.000
97.3
94,000 66.2 1,289,000 2,499,000
No. La., Ark
89,300
79,000 88.5
48,000 60.8
336,000
Rocky Mountain 152,000 138,000
467,000
90.8
24,000
California
451,000
915,100 866,100 94.6 407,000 17.4 1,117.000
47.0 15,376,000 99,654,000
Totals week:
Jan. 14 1933_ 3,856,300 3,532,500 91.6
1,984,000 56.2 c52264000 126,472.000
Jan. 7 1933_ 3,856,300 3.532,500
91.6 1.933,000 54.7 52,249,000 127,693
,000
a Below is set out an estimate of total
motor
fuel stocks on U. S. Bureau of Minas
basis for week of Jan. 14 1933, compared
with certain January 1932 Bureau figures:
A. P. I. estimate B. dc M. basis, week Jan.
14 1933_13
53,365,000 barrels
U.S. B. of M. motor fuel stocks, Jan.
55,107,000 barrels
U. B. B. of M. motor fuel stocks. Jan.1 1932
31 1932
60,189,000 barrels
b Estimated to permit Comparison with
A. P. I. Economics reports, which Is
Bureau of Mines basis.
of
c Includes 35,470,000 barrels at refineries,
10,986,
000
at
bulk
terminal
s.
000 barrels in transit, and 4.475,000 barrels of
1,333,other motor fuel stocks.

Major

Non-Ferrous Metals Dull-Zinc Down
to
Three Cents, St. Louis.
According to "Metal and Mineral Markets" for
Jan. 19
actual consumption of major non-ferrous metals
has shown
virtually no change for the better since the first
of the year,
which accounts for renewed uneasiness over the
price structure in a number of items. Prime Western zinc
was offered
more freely in several directions, and the price
declined to
3 cents, St. Louis basis. Foreign quotations
for copper
eased off a fraction of a cent on a smaller volum
e of business.
The domestic market acted as if a "standstill"
agreement
were in force. Lead prices were maintained in all
directions
in the face of dull business, largely on the belief that
further
curtailment in production is not far off. Tin prices
were
irregular, but showed little net change for the week.
Silver
was steady on buying for the Far East. Platinum was
reduced to $26 per ounce in an effort to stimulate busine
ss.
The same publication says:
Foreign Copper Declines.
A decline in the volume of foreign business and
a slight downward movement in export prices comprised the outstan
ding development in the copper
market during the last week. Foreign quotati
ons ranged from 4.95 cents
to 5.175 cents c.i.f. during the seven-d
ay period. Domestic business was
practically at a standstill, with prices
unchanged at 5 cents a pound,
Connecticut. for prompt-shipment metal,
and 534 cents for second-quarter
business.
The falling oft in foreign centers was
said to be accounted for by the
good
volume of trading there in the precedi
ng few weeks, during which
period
Consumers covered immediate require
ments. In some directions
uncertainty abroad concerning the econom
ic situation in the United
States
was held to be a factor in the decline
of foreign business.
At the moment the three subjects
that are said to be receivi
ng most
attention on the part of the copper industr
y are (1) a movement
in this
country to promote legislation making
inoperative certain
provisions
of the anti-trust laws; (2) reports that
foreign producers will
probably
reconsider curtailment measures;
(3) efforts of domestic
producers to
develop a plan for limiting output in
this country.
Production of copper, by States, so
far as reported by the United
States
Bureau of Mines, together with
comparable figures for
1931. follows*

402

Financial Chronicle

Jan. 21 1933

$4 and galvanized barbed wire is $6 lower. Extras on spring wire have
also been cut. Galvanized sheets have experienced a total drop of $4 a
Arizona
ton during the past two weeks, and reductions have occurred in some other
California
grades, especially cold-rolled. The sheet price situation is so unsettled
Colorado
that producers scarcely know what to quote to obtain an order, and conIdaho
sumers are making offers that are considerably below the lowest prices that
Montana
Nevada
mills have thus far been willing to accept. Weakness in sheets, which at
New Mexico
first was most pronounced at Detroit and in open bids taken recently by
Utah
the State of Ohio on 1,000 tons of license-plate stock, has spread rapidly
Washington
over the country.
x Preilmlnaty estimate.
Although merchant bars are firm, sharp concessions have developed on
Actual consumption of copper throughout the world at present is somereinforcing bar business, a leading producer having sold 500 tons to an
what higher than the figures mentioned frequently by copper authorities
metal
Eastern distributer at a concession of several dollars a ton. Plates have
would seem to indicate, as a fair quantity of so-called secondary
been sold in the East at prices ranging from 1.40c. to 1.60c. a lb., CoatesIs moving into consumption channels that does not show in the current
ville, with the higher figure now representing the top of the general market.
statistics of the industry. In fact, it is held in some quarters that secondary
Fabricated structural materials is being offered at very low prices, but shapes
metal, in a period of extreme dullness, exerts more of an influence on prices
are being fairly well held,some low prices having been withdrawn by mitts.
for virgin metal than under normal circumstances. A rising market here,
keep
The decline in prices of some steel products is believed to make more
without a corresponding increase in the world price, would tend to
certain a further reduction in steel workers' wages, on which an announcemost of the salvaged copper-containing material in this country and act
ment is expected soon.
as a drag on the domestic price structure.
Pig iron shipments are gaining this month In some areas, notably at
Exports of blister and refined copper from Canada during the period of
and Cleveland, while other districts show no gains. Manchurian
StaChicago
Metal
of
Bureau
American
April-November 1932. according to the
pig iron is being offered in Philadelphia at 511.50 a ton, or $1 below the lowtistics, were as follows:
Tons.
Short
est domestic furnace price in that district. A Buffalo merchant plant.
Short Tons,
Refined.
Blister.
with four furnaces, is now completely idle, but has ample stocks. A recent
5,698
310
April
development of the depression is the abandonment of foundry departments
7,655
389
May
11,673
by many general manufacturers, a factor which ultimately will benefit
1.965
June
3,591
4,129
the jobbing foundries.
July
3,157
180
August
With the decline in plain wire to 2.10c., the lowest price at which this
4,261
246
September
product has been quoted since 1916, the "Iron Age" composite price for fin6,616
179
October
10,335
ished steel Is now at 1.923c. a lb., or 90c. a net ton below the lowest figure
57
November
of the 1921-1922 depression. Nails and box annealed sheets are down to
imposition
the
to
prior
just
exports
of
increase
an
These figures show
1915 levels, while galvanized sheets, nominally at 2.65c. a lb., are well
copper. Anon June 21 of the United States duty of 4 cents a pound on
below any price quoted in the present century. The "Iron Age" pig iron
the proposed
other increase occurred in the last few months, during which
composite price is unchanged at $13.56. but the heavy melting scrap commade to add to
British tariff has been under discussion and efforts were
posite has reverted to 86.75. the figure in effect at the beginning of the
stocks of Empire copper held in the British Isles.
month, last week's rise at Pittsburgh having been wiped out.
Lead Continues Quiet.
THE "IRON AGE- COMPOSITE PRICES.
pro
small
Finished Steel.
Though the demand for lead during the last week was of
prices
and
situation
Based on steel bars, beams, tank plates,
portions, sellers showed no particular anxiety over the
Jan. 17 1933. 1.923o. a Lb.
the
of
basis
contract
wire, rails, black pipe and sheets.
the
York.
1.9380.
New
One week ago
continued unchanged at 3 cents,
1.948c, These products make 85% of the
ProLouis.
St.
cents,
ago
2.875
month
and
One
Co..
Refining
&
American Smelting
nlitgehd.States output.
Um
933e.
1
ago
One year
what appears
ducers are still talking about restricting output further to meet
Low.
the consuming
to be an even lower rate of operations than anticipated in
1 9480. Jan. 3
1.923o. Jan. 17
1
933
level of
193
Industries. Quite a few In the industry believe the prevailing
1.9770. Oct. 4
Feb. 2
1.926c.
1932
trend
2.037o. Jan. 13
1.945o. Dec. 29
prices will exert all the influence necessary to correct an unfavorable
in2.273c. Jan. 7
2.0180. Dec. 9
1930
in the statistical position of lead. Stocks of refined lead probably
2 317e. Apr. 2
2.2830, Oct. 29
1929
creased during December.
2 286o. Dee. 11
2.2170. July 17
Zinc at Three Cents.
2 4020. Jan. 4
2.212o. Nov. 1
7
1928
pat Iron.
Weakness in the price structure of zinc continued last week, with prices
Based on average of baste iron at Valley
ranging from 3.075 cents to 3 cents during the first half of the seven-day
Jan. 17 1933, $13.56 a Gross Ton.
$13.58 furnace foundry irons at Chicago,
One week ago
period. Beginning with Monday, however, the market settled at the
13.56
Philadelphia, Buffalo, Valley and MrOne month ago
lower figure, at which level it closed yesterday. Consumer inquiry was
14.61
mingharn.
one year ago
practically non-existent the last two days. Sales for the calendar week
Low.
ended Jan. 14. according to statistics circulating among producers, totaled
513.58
Jan. 3
$13.56 Jan. 3
1933
14.81 Jan, 5
about 1.200 tons.
13.56 Dec. 6
1932
15.90 Jan. 6
Little Change in Tin.
15.79 Deo 15
1931
18.21 Jan, 7
15.90 Dec. 18
1930
The price of tin fluctuated within narrow limits during the last week,
18.71 May 14
Dec. 17
18.21
1929
18.59 Nov. 27
17.04 July 24
with the undertone about steady on indications that selling by important
1928
19.71 Jan. 4
17.54 Nov. I
operators abroad had subsided. The recent selling in London that caused
1927
with
Steel Scrap,
the price to fall rather sharply is now believed to have originated
some weak holder of the metal not identified with the Tin Pool. TinJan. 17 1933, $6.75 a Gross Ton. (Based on No. 1 heavy melting stee
$6.831 quotations at Pittsburgh, Philadelphia
One week ago
plate operations in the United States increased a trifle in the last week
8.92{ and Chicago.
One month ago
or so, and this seemed to encourage traders. Futures commanded a
8.33 i
ago
year
week.
One
the
throughout
metal
spot
over
premium of about 45 points
High.
Low.
Chinese tin. 99%. prompt shipment, closed as follows. Jan. 12, 21.75
$6.83 Jan. 10
56.75 Jan. 3
1933
cents;
8.50
Jan. 12
8.42 July 6
cents; Jan. 13, 21.35 cents; Jan. 14, 21.35 cents; Jan. 16. 21.30
1932
Jan,
11.33
6
7.62 Dec. 29
1931
Jan. 17, 21.60 cents; Jan. 18, 21.525 cents.
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
Further Gain Reported in Steel Production-Opera- 1928
15.25 Jan, 11
13.08 Nov.22
1927
Pounds.
1931.
401,344.909
12,931.995
8,165.000
1.144.915
184,555,735
72,634.497
61.503.100
151,236,505
202,503

Pounds.
1932x.
183,887,000
1,105,000
7,231.000
1,097.000
84.717,000
31,333,000
30,704.000
65,906,000
5,000

tions Now at 16% of Capacity-Prices Weaken.
Steel production jumped 1M points to 17% in the week
A moderate expansion in miscellaneous orders for steel ended Jan. 14, the highest rate since the last week of Novemand a continuance of releases of automobile materials and ber and two full points above the average for December,
tin plate have brought a further rise in steel ingot production stated "Steel" of Cleveland, Jan. 16. "Steel" continued:
Much of this improvement, which exceeded the expectation of the Indusfor the country as a whole to 16% of capacity, but this
the complete passing of the holiday and year-end influence.
minor improvement has been accompanied by pronounced try. followed
consumers who closed before Christmas resumed last week, and
Many
and
wire
products
and
price weakness, especially in sheets
ordered. Others, Inventory-taking ended, again were free to take in steel.
Continued substantial releases from the automotive industry were a
to some extent in concrete reinforcing bars, according to
and while the sheet and strip mills which are the chief beneficiary
the "Iron Age" of Jan. 19. Heavy melting steel scrap at factor,
of this business are operating on day-to-day schedules, there is reasonable
Pittsburgh has lost its 25e. a ton advance of a week ago, assurance of good volume through the remainder of January.
No small support was contributed by tin plate mills, which last week
continues the "Age," which further goes on to say:
Cleveland mills, aided by automobile orders. have attained an ingot
producing rate of 41%, which was equaled there in only week of 1932.
The Wheeling district is holding at 35%, mainly because of tin plate requirements. A Detroit plant Is operating five of its six open-hearth furnaces. and an Ohio maker of sheets has been booking business in the past
week equivalent to 30% of its capacity. At Chicago steel orders and
specifications have reached a total that was exceeded in only a few weeks
of last year. but production has not yet risen above the recent low of 9%.
Valley and other northern Ohio mills are up to 17%. while the Pittsburgh
district is barely able to hold at 14%, two fairly large plants in that area
being completely idle.
Unless there is a continued gain In orders from the miscellaneous consumers of steel, together with some pick up in building construction and
railroad buying, the present rate of steel operations may not hold, as the
continuance of automobile manufacturing schedules is dependent upon the
development of a larger volume of retail sales of cars.
However, some railroads are working on their 1933 programs, and rail
inquiries from at least two or three roads are expected this month. The
appearance of inquiries for some private building work is an encouraging
factor In structural steel and reinforcing bars, as public projects have been
The War Department
the main support of these products for some time.
on the Great
is planning for the construction of a number of breakwaters
required. Bids are
ho
will
tons
Lakes, and, if sheet piling L9 used. 55.000
which will eventually
also being taken on the San Francisco-Oakland bridge,
an $8,000,000 road
take upward of 150,000 tons of steel. In Michigan
program, including bridges, Is proposed.
has extended to
sheets,
In
marked
Price weakness, which has been most
ton. Wire rods and
wire products, which have been reduced $2 to $6 a
galvanized wire has declined
plain wire are off $2, nails are down $3, smooth




expanded their operations five points, as In each of the two preceding
weeks, going to an average of 60% for the entire Industry. Some independent tin mills were engaged more than 60%.
Not all districts and products participated in this forward movement
and a spotty situation obtains, but even where the drag was heaviest the
average of early December, in point of demand, was regained. The decline
of only 161 tons In the Steel corporation's unfilled orders Dec. 31 is evidence
of the turn.
and this was
Only the Buffalo district lost operating ground last week,
due to its being the off week in a staggered schedule. Cleveland held at 35%
and Chicago at 10. Other districts lifted slightly, Philadelphia to 1155.
Pittsburgh to 14. Birmingham to 20 and Youngstown to 18. To equal the
26% average of last January Is too much to hope, but if the last half of the
month is retativety as good as the first, 20% is possible.
The chief handicap at present Is the lack of railroad track materials. No
outstanding rail orders are in sight, though fastenings are in better demand.
Chesapeake & Ohio Is inquiring for 1.050 tons of screw spikes; Atlantic
Coast Line has placed 5,000 kegs of spikes; Seaboard Air Line has distributed
some tie plates. New York Central has ordered 5,000 wheels. Final statistics for 1932 place domestic freight car orders at 1.739, against 10,694 in
1931, 45.146 in 1930 and 106,105 In 1929.
Structural awards, at the low total of 5.548 tons for the week, reflect
the tightening of Federal and State budgets. Republic Steel Corp. has
booked 4,000 tons of steel pipe for Los Angeles. Bids are In at Washington
on 1,400 tons of cast iron pipe. River barge and pontoon work is moderately
good, American Bridge Co. booking 1,500 tons. Jobber specifications for
wire are noticeably better at Chicago.
Pig iron shipments continue to gain slowly, and thus far In January two
merchant and one steelworks blast furnace stacks have resumed. In addition

Financial Chronicle

Volume 136

to several hundred tons In December, the Japanese have delivered 500
tons of pig iron at Philadelphia.
At Pittsburgh. Youngstown, New York and Boston scrap prices are
slightly higher, for the first time since October. The movement is not
substantial and it leaves the scrap composite of "Steel" unchanged at
$6.21. but if continued a few days it may be significant. Japan is taking
30,000 tons of steel scrap from Baltimore, this being 90% of the salvaged
material from scrapping 127 shipping board vessels.
Barring weakness in sheets, which is affecting all districts, finished steel
prices are holding. Pig iron also is firm. The adjustment in foreign iron
ore is completed with a reduction in chrome ore. "Steel's" composite of
iron and steel is unchanged this week at 828.83 and the finished steel composite at $46.50.

Steel ingot production for the week ended Monday, Jan..16,
is placed at about 16
of theoretical capacity, according
to the "Wall Street Journal" of Jan. 17. This compares
with 15
in the preceding week, and with 133/2% two
weeks ago. The "Journal" adds:
The United States Steel Corp. is credited with a rate of approximately
15%,against 143i% the week before, and 13% two weeks ago, while leading
independents are estimated at a shade over 17%, compared with a little
better than 16% In the previous week and a fraction under 14% two weeks
ago.
The following table gives the ingot production for the corresponding
weeks of the five preceding years, with the Increases or decreases from the
week immediately preceding:
Industry.
U. S. Steel. Independents
1932
21A + A
24+2
26 +1
1931
42 +5
48+4
44% +4M
1930
67 +3
72+5
69 +4
1929
85
82 +2
83 +1
1928
72 +5
83+7A
77 +6

Employment in Anthracite Collieries in Pennsylvania
During December Decreased Slightly as Compared
with November, While Wage Payments Increased
10%, According to Federal Reserve Bank of Philadelphia.
Pennsylvania anthracite employment declined less than
1%, while wage payments increased 10% in December as
compared with November, according to the indexes compiled by the Philadelphia Federal Reserve Bank on the basis
of direct reports collected by the Anthracite Institute from
154 collieries which employed in December around 85,000
workers and had a weekly payroll of more than $2,200,000.
Both employment and payrolls showed a decline in the same
period of 1931. In noting this, the Department of Research
and Statistics of the Reserve Bank also said:
The employment index in December was about 61% of the 1923-25 average. or 22% below that of a year ago. The payroll index was 47, or 28%
lower than In December 1931. For the year as a whole, the average decline amounted to about 22% in employment and 29% in payrolls when
Compared with 1931. These decreases were somewhat larger than those
occurring between 1930 and 1931. Comparisons by months follow
(1923-25 Average100.)
Wage Payments.

Employment.

January
February
March
April
May
June
July
August
September
October
November
December
Yearly average_ _

1930.

1931.

1932.

1930.

1931.

1932.

105.6
107.8
83.3
84.8
92.3
89.5
90.3
81.7
91.9
96.2
94.7
96.5

88.3
87.1
79.9
82.9
78.3
74.2
63.4
65.5
77.8
84.4
81.2
77.7

74.2
69.3
71.7
68.1
65.1
51.5
43.2
47.8
54.4
62.1
61.0
60.6

91.0
102.4
66.2
63.2
84.8
78.3
71.8
67.3
77.3
101.1
82.2
84.1

75.0
85.5
59.6
63.1
63.9
55.9
45.0
47.2
54.4
76.3
86.6
65.6

51.5
48.0
51.3
60.4
44.6
31.4
29.0
34.6
39.4
56.0
42.7
47.1

92.9

78.4

60.8

80.8

63.2

45.0

Weekly Production of Bituminous Coal Increased
During Week Ended Jan. 7 1933-Anthracite
Output Lower.
According to the United States Bureau of Minos, Department of Commerce, 6,126,000 net tons of bituminous coal
and 647,000 tons of anthracite were produced during the
week ended Jan. 7 1933, compared with 5,800,000 tons of
bituminous coal and 892,000 tons of anthracite during the
preceding week and 6,930,000 tons of bituminous coal and
1,131,000 tons of anthracite during the corresponding period
last year.
During the coal year to Jan. 7 1933 production amounted
to 233,639,000 tons of bituminous coal and 37,292,000 tons

403

of anthracite as against 282,871,000 tons of bituminous coal
and 44,385,000 tons of anthracite during the coal year to
Jan. 9 1932. The Bureau's statement follows:
The total production of bituminous coal during the week ended Jan. 7
1933 is estimated at 6.126.000 net tons. Jan. 2 was observed as a holiday
in most bituminous fields, and detailed figures of loadings indicate that for
the country as a whole, the day was equivalent to 0.3 of a normal working
day. The average daily rate of output for the week was 1,156.000 tons,
indicating little change from the preceding week. Production during the
holiday week (Dec. 28-Jan. 2) in 1932 amounted to 6,100,000 tons.
Production of Pennsylvania decreased sharply in the week of Jan.7 1933.
The total output is estimated at 647,000 net tons, a decrease of 27.5% from
that in the preceding week. Production during the holiday week (Dec.
28-Jan. 2) in 1932 amounted to 974,000 tons.
Beehive coke production in the week ended Jan. 7 Is estimated at 17,800
net tons.
ESTIMATED UNITED STATES PRODUCTION OF COAL AND BEEHIVE
COKE (NET TONS).
Week Ended,
Jan.7
1933.c

Dec. 31
1932.

Coal Year to Date.
Jan. 9
1932.

1932-33.

1931-32.

1929-30.

Ditum. coal:a
Weekly total 6,126.000 .5.800,000 6.930,000 233,639,000 282,871,000 405,950,000
Daily aver..,. 1,156,000 1.160,000 1,155,000
948,000 1,197,000 1,716,000
Pa.anthra.:b
Weekly total 647,000 892.000 1,131,000 37,292,000 44,385.000 56,774.000
Daily aver_ _ 129,400 178,400 188.500
160,100
190.500
243,700
Beehive coke:
22,300
529.200
Weekly total
17.800
18,000
730,600 4,963,500
3,717
3,600
Daily aver__
2,205
2.967
3.044
20,681
a Includes lignite, coal made Into coke, local sales and colliery fuel. b Includes
Sullivan County, waahery and dredge coal, local sales and colliery fuel. c Subject
to revision.
ESTIMATED WEEKLY PRODUCTION OF COAL BY STATES(NET TONS).
Week Ended
Stale.
Dec. 31
1932.

Dec. 24
1932.

Jan. 2
1932.

a Jan. 3
1931.

Alabama
Arkansas and Oklahoma
Colorado
Illinois
Indiana
Iowa
Kansas and Missouri
Kentucky-Eastern
Western
Maryland
Michigan
Montana
New Mexico
North Dakota
Ohio
Pennsylvania (bituminous)
Tennessee
Texas
Utah
Virginia
Washington
West Virginia-Southern b
Northern c
Wyoming
Other States_d

170,000
221,000
171,000
259,000
54.000
81,000
63,000
88,000
126,000
172,000
144,000
203,000
720,000
940.000
907,000 1,143.000
251,000
336,000
257,000
328.000
67,000
95,000
83.000
88,000
135,000
174,000
143,000
141,000
445,000
613,000
432,000
680.000
166,000
245,000
182,000
230.000
29,000
35.000
35.000
42,000
11,000
12.000
8,000
14.000
47,000
56,000
44.000
61.000
23,000
31,000
31,000
35,000
51.000
50,000
41,000
31,000
325,000
470,000
300,000
415.000
1,380,000 1,781,000 1,436,000 2,079,000
55.000
78,000
69,000
111,000
8,000
10,000
10.000
9.000
96.000
121.000
78,000
148.000
167,000
200,000
155,000
211.000
25,000
30.000
29.000
41,000
1.095,000 1,464,000 1,035,000 1,436,000
257,000
362,000
357,000
533,000
91,000
88,000
131,000
80,000
6,000
7,000
12,000
5.000

Total bituminous coal
Pennsylvania anthracite

5.800,000 7,667,000 6,100,000 8,469,000
892,000 1,452,000
974,000 1,097,000

Total coal
6.692.000 9.119.000 7.074.000 9.566.000
a Figures for 1931 only are final. b Includes operations on the N.& W.; C.& 0.;
Virginian; K.& M.; and B. C. & G. c Rest of State, including Panhand e. d This
group is not strictly comparable in the several years.

Anthracite Production and Shipments Declined
During 1932.
According to the Anthracite Institute, Philadelphia,
anthracite commercial production in 1932 (which does not
include colliery fuel), it is estimated, amounted to 44,535,000
net tons, a decrease of 19.8% as compared with 1931 commercial production of 55,537,000 net tons, and a decrease
of 30.8% as compared with commercial production in 1930
of 64,346,000 net tons.
Shipments of anthracite for the 12 months in 1932, says
the Institute, amounted to 39,324,394 gross tons as compared with 47,878,500 in 1931. Shipments by months
(in gross tons) were as follows:
1932.
1932.
1931.
1931,
January
2,723.050
5,054.819 August
3,008.631
3,401,981
February
3.192.452
4,395,183 September_ - 3,271,681
3,372,926
March
4,248,463
3,898,578 October
3,850,928
5,194,968
April
4,476,704
3.465.302
4,708,199 November_ __
3,319,283
May
4,132,989 December ____ 4,029,016
2,589.883
3,759,217
June
3,551,212
1,988,260
July
2,480,024
3,088.670
39,324.394
Total
47,878,500
Note.-ContrIbutary causes of the tonnage decline of the past 12 months included
widespread unemployment among the it dustry's customers; sharp wage declines
among the employed customers; doubling up of families: MC of cheaper fuels relatively high temperatures in the early part of the calendar year; substantial importations of foreign fuels; and failure of the tariff on coal to prove an effective
barrier to fuel imports.

Current Events and Discussions
The Week w'th the Federal Reserve Banks.
The daily average volume of Federal Reserve bank credit
outstanding during the week ending Jan. 18, as reported
by the Federal Reserve banks, was $2,104,000,000, a decrease of $42,000,000 compared with the preceding week,
and an increase of $266,000,000 compared with the corresponding week in 1932. After noting these facts, the Federal
Reserve Board proceeds as follows:




On Jan. 18 total Reserve Bank credit amounted to $2,068,000,000, a
decrease of $38.000.000 for the week. This decrease corresponds with
decreases of $29,000,000 in member bank reserve balances and $5,000.000
In unexpended capital funds, non-member deposits, &c., and an increase
of $17,000.000 in monetary gold stock offset in part by an increase of
313.000,000 in money in circulation.
The System's holdings of discounted bills, of bills bought in open market
and of United States Government bonds show little change for the week,
while holdings of United States Treasury notes increased $9,000,000 and
those of Treasury certificates and bills decreased $43,000,000.

Financial Chronicle

404

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 stocks 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 Jan. 18, in comparison with the preceding week and with the corresponding
date last year, will be found on subsequent pages, namely,
454 and 455.
Changes in the amount of Reserve Bank credit outstanding and in related items during the week and the year ending
Jan. 18 1933, were as follows:
Increase (+) or Deere= (—)
Since
Jan. 18 1933. Jan. 11 1933. Jan. 20 1932.
249,000,000 +1,000,000 —570,000,000
—158,000.000
32,000,000
1,778,000,000 —34,000.000 +1,027,000,000
—39.000.000
9,000,000 —4,000,000

Bills discounted
Bills bought
U. S. Government securities
Other reserve bank credit

TOTAL RESERVE BANK CREDIT_ 2,068,000,000 —3S,000,000
Monetary gold stock
4,566,000,000 +17,000,000
Treasury currency adjusted
1,911,000,000 +1,000,000

+261,000,000
+116,000,000
+126,000,000

5,602,000,000 +13,000,000
Money in circulation
Member bank reserve balances
2,545,000,000 —29,000,000
Unexpended capital funds,non-member
397,000,000 —5,000,000
deposits, &i3

—11,000,000
+573,000.000
—61,000,000

Returns of Member Banks in New York City and
Chicago—Brokers' Leona.
Beginning with the returns for June 1927, the Federal
Reserve Board also commenced to give out the figures of
the member banks in New York City, as well as those in
Chicago, 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 City 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 City statement, of
course, also includes the brokers' loans of reporting member
banks. The grand aggregate of brokers' loans the present
weeks shows a decrease of $14,000,000, the total of these
loans on Jan. 18 1933 standing at $367,000,000, as compared with $331,000,000 on July 27 1932, the low record for
all time since these loans have been first compiled in 1917.
Loans "for, own account" decreased from $367,000,000 to
to $353,000,000, while loans "for account of out-0f-town
banks" remain unchanged at $11,000,000 and loans "for
account of others" remain unchanged at $3,000,000.
CONDITION OF WEEKLY REPORTING MEMBER DARKS IN CENTRAL
RESERVE CITIES.
New York.
Jan. 18 1933. Jan, 11 1933. Jan. 20 1932.
Loans and investments—total

7,088.000,000 7,055,000,000 8.838.000,000

Loans—total

3,408,000,000 3,402,000,000 4,418,000,000

On securities
All other

1,559,000,000 1,580,000,000 2.205,000.000
1,849,000,000 1,822,000,000 2,211,000,000

Investments—total

3,678,000,000 3,853,000,000 2,422,000,000

U. S. Government securities
Other securities

2,609,000,000 2,560,000,000 1.578,000,000
1.069,000,000 1.093,000.000 844.000,000

Reserve with Federal Reserve Bank..l,009.000,000 1,147.000,000
Cash in vault
37,000,000
40,000,000

682,000,000
48,000,000

Net demand deposits
Time deposits
Government deposits

5,845.000,000 5,880,000,000 5,003,000,000
914,000,000 894,000,000 779,000,000
102,000,000 112,000,000 118,000,000

Due from banks
Due to banks

79,000,000
85,000,000
1,609,000,000 1,618,000,000

Borrowings from Federal Reserve Bank

58,000.000
882,000,000
15,000,000

Loans on secur. to brokers & dealers
353,000.000
For own account
For account of out-of-town banks...-. 11,000,000
3,000,000
For account of others

367,000,000
11,000,000
3,000,000

453.000,000
73.000,000
5,000,000

367,000,000

381,000,000

531,000,000

Total
On demand
On time
Loam and investments—total

191,000.000 205,000,000 401,000,000
176,000,000 176,000,000 130,000.000
Chicago.
1,065,000,000 1,084,000,000 1,528.000,000

Loans—total
On securities
All other
Investments—total
U.S. Government securities
Other securities
Reserve with Federal Reserve Bank-Cash in vault




643,000,000

639,000,000 1,057,000,000

381,000,000
282,000,000

358,000.000
281,000,000

612,000,000
445.000,000

422.000,000

445,000.000

469,000,000

230,000,000
192,000,000

249,000.000
196,000,000

255,000,000
214,000,000

307,000,000
18,000,000

304,000,000
19,000,000

152,000,000
19,000,000

Net demand deposits
Time deposits
Government deposits

Jan. 21 1933
Jan. 18 1933, Jan. 111933. Jan. 20 1932.
$
$
$
930,000,000 939,000,000 1,007,000,000
315,000,000 318,000,000 402,000,000
12,000,000
13,000,000
11,000,000
270.000,000
310,000,000

Due from banks
Due to banks

262,000,000
305,000,000

Borrowings from Federal Reserve Bank-

93,000,000
243,000,000
3,000,000

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 Jan. 11:
The Federal Reserve Board's condition statement of weekly reporting
member banks in leading cities on Jan. 11 shows a decrease for the week of
$78,000,000 in loans, increases of $38,000,000 in investments, $117.000,000
in net demand deposits and $87,000,000 in reserve balances with Federal
Reserve banks, and a decrease of $46,000.000 in Government deposits.
Loans on securities declined $8,000,000 at reporting' member banks in
the Chicago district and $34,000.000 at all reporting member banks. "All
other" loans declined $28,000,000 in the New York district and $44,000,000
at all reporting banks.
Holdings of United States Government securities increased $57,000,000
In the New York district and at all reporting banks, while holdings of other
securities declined $8,000,000 in the New York district and $19,000,000 at
all reporting banks.
Borrowings of weekly reporting member banks from Federal Reserve
banks aggregated 358,000,000 on Jan. 11. the principal change for the
week being a decrease of $5,000,000 at the Federal Reserve Bank of San
Francisco.
A summary of the principal assets and liabilities of weekly reporting
member banks, together with changes during the week and the year ending
Jan. 11 1933,follows
Increase 1+) or Decrease (—)
Since
Jan. Il 1933. Jan. 4 1933.
Jan. 13 1932.
s
Loans and investments—total----18,673,000,000
—40,000,000 —1,814.000,000
Loans—total
On securities
All other
Investments—total
U.S. Government securities
Other securities
Reserve with F. R. banks
Cash in vault
Net demand deposits
Time deposits
Government deposits
Due from banks
Due to banks
Borrowings from F. It. banks-.
• Jan. 4 figures revised.

10,138,000,000

—78,000,000 —2,895,000,000

4,237,000,000
5,899,000,000

*--34,000,000 —1,423,000.000
*-44,000,000 —1,472,000,000

8,537,000,000

+38,000,000 +1,281,000,000

5,262,000,000
8,275,000,000

+57,000,000 +1,266,000.000
—19,000,000
+15,000,000

2,137,000,000
216,000,000

+87,000,000
—5,000.000

+821,000,000
—33,000,000

11,940,000,000
5,701,000,000
286,000,000

+117,000,000
—5.000,000
—46,000,000

+297,000.000
—142,000,000
+21,000,000

1,819,000,000
3,582,000,000
58,000,000

+65,000,000 +892.000,000
+92,000,000 +1,135,000.000
—3,000,000

—411,000,000

Britons Oppose Bargains on Debts—Likely to Rebuff
Any Effort to Force Return to Gold as Recompense
For Cuts.
A cablegram as follows from London Jan. 15 is taken
from the New York "Times":
Every indication at the moment is that the Roosevelt Administration
will be rebuffed if it attempts to push Great Britain back onto the gold
standard as recompense for reducting the war debts.
Reports that the new American Government may seek to drive a bargain
on currency and debts are causing some irritation here, although the proposal leaves the British quite unmoved. They have never admitted any
more than a general connection between the two problems and refuse to
admit the right of the United States to win any concessions in return for
debt revision.
In recent months the virtual wiping out of the war debts has come to
be regarded here as an economic necessity as well OA a moral right, and
neither the government nor the public has ever regarded the debts as a
lever for action in other fields. The impression hero is that if the United
States demands the stabilization of sterling In exchange for debt reduction
it will fail even worse than when President Hoover tried to establish a
link between disarmament and the debts last summer.
London "Times" Issues Warning.
To-morrow, in an outspoken editorial, the London "Times" will warn
that any American attempt to "drive a bargain" will be doomed beforehand.
Recalling Senator Borah's recent demand that a debt settlement should
depend on the settlement of disarmament, tariff and currency difficulties
the paper declares:
"Other eminent Americans betray a tendency to regard the war debts
as an asset as well as a nuisance and to think that in getting rid of them
they would be making a concession for which they could reasonably expect
concessions in return.
"That is a dangerous attitude, for any attempt to use the debts as a
bargaining weapon could only complicate the situation and make for
further delay where there has been too much delay already. The world
cannot afford to postpone the solution of the most urgent of its many
problems Just because it Is not yet ready with a cure for everything."
Probably 99% of British opinion agrees with the London "Times"
that the war debts are a more urgent matter than the stabilization of sterling.
Complaints from America that the depreciated pound is forcing down prices
are met here with shrugs of the shoulders. As yet there is no sign that

Financial Chronicle

Volume 136

405

the British are prepared to stabilize their currency before the middle of
1934, and then only tentatively.

news in weeks. Associated Press advices from London,
Jan. 20, reporting this added:

Content to Stay off Gold.
In their present state of mind the British are content to stay off gold,
for sterling has behaved better in the last 18 months than any one had
anticipated. But their attitude is also a product of the tremendous propaganda that has been flooding the country ever since the departure from
gold in September, 1931.
To-day no politician and almost no economist in England has a good
word to say for the gold standard, which is thoroughly feared and distrusted by the mass of the people.
The British people have learned to talk of the "fluctuations of gold"
whenever their own currency has been erratic. They have been taught
to pity the gold countries for their useless stocks of bullion and to congratulate themselves on sterling's stability power. The gold standard.
in short, has been made the symbol of the bad days before 1929, when
Britain's prosperity languished by comparison with America's.
Ultimately, Britain will go back to gold or some other international
standard, but the propaganda of the last 18 months has made the Jump
more difficult and has made any immediate debts and currency bargain
a mere dream.
See No Need to Bargain.
Officials here are sometimes asked what their government will offer the
United States in return for debt reduction. Their answer is always "Nothing," and they add that there is no need to bargain, since economic events
will make a clean sweep in one way or another.
The London "Times" reflects the general attitude when it says:
"These intergovernmental payments are a malignant ulcer in the
economic system of the world which must be cut out once and for all if
the patient is to be saved. The only practicable alternatives are another
Lausanne or general default.
"There might, indeed, be a third course—such a complete recasting
of the fiscal and economic system of the United States as would enable
the debtor nations to repay in goods and services what they borrowed in
goods and services. But no one acquainted with American conditions
Can regard it as even a remote possibility."

British opinion, official and unofficial, is largely agreed that solution of
the war debts problem would provide the key to solution of the larger
economic problems, but the Government itself will await official notification of the decision at Washington before commenting.
The Cabinet already is assembled in London preparing for the opening
of Parliament on Feb. 7, and at its meetings scheduled for next Monday.
Wednesday and Thursday, discussion of the debts undoubtedly will dominate all other matters, domestic and foreign.
Experts in the Treasury office have been busy since last December
when England paid the debt installment for that month, preparing the
British case for debt revision.
There has been no indication of England's preference of methods for
dealing with the situation, but apparently the Government is prepared
to deal either through a commission of experts or through established
diplomatic channels.
It is thought here that if the latter method is adopted most of the exchanges will take place between the Ambassador at Washington and the
State Department there, with United States Ambassador Mellon acting
In emergencies in London.
The assurance that the debts discussions will be reopened has given
relief to the British Government, particularly because of the apprehension,
which had increased during the past week, that the American political
situation might cause delay.

Conference Between President Hoover and PresidentElect Roosevelt—Discussions Devoted to Foreign
Situation—Incoming Administration to Accord
Hearing to British Representatives on Debt Issue.
Following a conference at the White House yesterday
(Jan. 20) between President Hoover and President - elect
Franklin D. Roosevelt a statement was issued indicating
that the British Government has asked for a discussion of
the debts, and that "the incoming administration will be
glad to receive their representatives early in March for this
purpose." The White House statement follows:
The conference between the President and the President -elect this
morning was attended by Secretaries Stimson and Mills and Messrs. Norman
Davis and Moley.
The discussions were devoted mainly to a canvass of the foreign situation
and the following statement covering the procedure to be followed was
agreed upon:
"The British Government has asked for a discussion of the debts.
"The incoming administration will be glad to receive their representatives
early in March for this purpose.
"It is, of course, necessary to discuss at the same time the world economic
problems in which the United States and Great Britain are mutually
interested, and therefore that representatives should also be sent to discuss
ways and means for improving the world situation."
It was settled that these arrangements will be taken up by the Secretary
of State with the British Government.

This second conference between President Hoover and
President -elect Roosevelt, was arranged, it is understood,
at the instance of Mr. Roosevelt, and the latter's desire
to confer with the President on world economic conditions,
is said to have been made known to President Hoover through
Secretary of State Stimson on Jan. 18. The President
promptly extended an invitation to Mr. Roosevelt to confer
with him at the White House on Jan. 20 at 11 a. m. From
the United Press advices from Washington yesterday (Jan.
20) to the New York "World-Telegram" we quote:
A plan to speed up negotiations between the United States and
Great
Britain on war debts and economic problems was agreed upon to-day by
President Hoover and President- elect Roosevelt at a White House conference.
The announcement of contemplated debt and economic discussions with
Britain did not mention France, which defaulted her December payment
to the United States.
Secretary of State Stimson will arrange with Great Britain to send
representatives here early in March for a conference with the new administration. Great Britain requested the discussion in several notes sent the
United States early in December.
Negotiations Left to Roosevelt.
Thus, Mr. Hoover and Mr. Roosevelt, after a first futile attempt last
fall, succeeded in bridging the gap between the administrations on the
important problem of war debts. Under the arrangement made to-day,
the present administration will set up machinery for prompt action after
March 4. But it will not actually negotiate. That will be left to Mr.
Roosevelt.

Proposed Discussion of War Debts With Representatives of Great Britain Viewed as "Best News
in Weeks."
The arrangements, made at the conference in Washington
on Jan. 20, between President Hoover and President - elect
Roosevelt, for the discussion of the war debts with Great
Britain by the incoming administration was characterized
in political quarters, in London late yesterday, as the best




Discussion of War Debts in Senate—Senator Johnson
Urges Transmission of American Resources into
Defaulting Nations Be Prohibited—France Criticized—Senator Borah Sees Default Justified By
Alleged Hoover Accord With Premier Laval —
Declares Debt Review Calls for Open Markets,
Arms Cut, Sound Money.
Last week, and again this week, the foreign debts have
been debated in the United States Senate. During the
debate on January 4 Senator William E. Borah, of
Idaho,Chairman of the Foreign Relations Committee,sought
to justify the state of mind underlying French default (we
quote from a Washington dispatch Jan. 4 to the New York
"Herald Tribune") by asserting that France had been led
to believe that if reparations were readjusted at Lausanne
such action would be followed by a readjustment of the war
debts. The dispatch went on to say in part:
Senator Borah brought up anew the conference between PresidentHoover
at the White House on Aug. 31 1931 and Senate and House leaders. This
was at the time when Pierre Laval, Premier of France, was about to visit
Washington. Senator Borah, giving publicity for the first time to his version of certain details of the conference asserted that President Hoover
wanted authority to confer with M. Laval with reference to a revision of
the war debts. The Idaho Senator declared that he told President Hoover,
at that time, that he would not consent to have the President enter into a
conference with M.Laval which would be binding on members of Congress.
Borah and Watson Clash.
"You can talk with Laval at your pleasure," Senator Borah asserted he
told the President, "but I cannot consent to any conference that will bind
Congress on the debts."
Senator Borah expressed the belief that in the conference between the
President and M. Laval, subsequently, the President had given encouragment to the idea that If reparations were adjusted this country would consent
to revise the war debts. His assertions served to cause a clash on the floor
between himself and Senator James E. Watson. of Indiana, Republican
leader, and a debate over what did happen at the White House conference.
Senator Watson declared that,so far as he was aware, not a single individual
In the conference advocated the cancellation of the debts. He di,puted the
Idea that the President sought such authority as Senator Borah described.

In another item in this issue of our paper we give letters of
Secretary of the Treasury Mills and Secretary of State
Stimson denying that France was assured of consideration of its debt to this country. In its account from Washington Jan. 4 regarding the debate the New York "Journal
of Commerce" stated that on the theory that without
the adjustment of the post-war problems which stand
in the way of the world's economic recovery there can be
ne real return of prosperity to the American people, Senator
Borah revealed to the Senate the terms upon which intergovernmental debts due the United States might well be
revamped. It was added that the discussion descended upon
the Senate when Senator Johnson of California embarked
upon a lengthy speech during which he warned those "who
represent high finance, those who represent the idea of cancellation, remission, modification of debts to foreign countries" that "we have ominous signs in the land to-day."
It was further said:
The debate developed an apparent animus in Senatorial circles to consideration of war debt.problems with defaulting nations and to giving
credence to declarations of inability to pay on the part of those which even
now are entering Into contracts for the building of warships and the supply
of war materials.

From the "United States Daily" of Jan. 5 we take the
following relative to the debate on Jan. 4:
The Senate devoted its entire scs-slon Jan. 4 to a debate of foreign debts
and related questions, and heard criticism of the French default, declarations that no debtor nation should be admitted to conference by the United
States in the absence of payments, and a general analysis of world problems
arising from the war.
Although the Senate had nothing pertaining to war debts before it. the
problem was taken up in connection with the announcement of plans by
Senator Johnson (Rep.), of California, to prohibit the transmission of
American r. sources into countries which had failed to honor their obligations.

Financial Chronicle

406
Barriers to Commerce.

Before the session had ended, Senator McKellar (Dem.), of Tennessee.
had presented a resolution which he described as "notice to the debtors to
pay and that it is to their interest to pay."
Senator Borah (Rep.), of Idaho,spoke at length in an analysis of the world
economic problems and linked armaments, debts, money questions and
trade barriers as an obstacle that must be removed before normal economic
laws may function properly.
Senators Reed (Rep.). of Pennsylvania, Robinson (Dem.), of Arkansas,
Minority Leader, and Johnson criticized France in statements for failure
of that nation to meet the debt payment, due last Dec. 15, and Senator
Borah charged that France was able to make the payment but declined so
to do. Each insisted that France was in default.
Refer to Moratorium.
The conference which President Hoover held with Premier Laval of
France, and the meeting to which he invited numerous representatives and
Senators in 1931 when the moratorium on debt payments was agreed to
entered the discussion. Although Senators differed as to what had taken
place in the conferences, those who discussed the meeting with the Chief
Executive maintained that nothing had transpired which the foreign debtors
could construe as warranting an expectation of American cancellation or
revision beyond the moratorium.
It was the first time in this session that the debt questions entered Senate
discussion for more than a few minutes. Several times previously, Senators
had announced their intentions to speak, but plans were abandoned without
explanation beyond the fact that tho time was not regarded as propitious.
Origin of War Debts.
Senator Johnson opened his speech by saying that no discussion of debts
could be complete or fair without a review of how the debts originated.
It was necessary, he assent d, because those who advocate cancellation or
revision or readjustment had overlooked this background in many instances.
In this connection, he recalled the plea that was used during the sale of
American war loans when, he said, citizens were implored to "give until
It hurts" and to borrow in order to buy. Notwithstanding this background,
the California Senator added, "an American foreign legion" has come into
being. Its members, he asserted, considered foreigners first and America
afterward.
"And it is not inappropriate," he continued, "that something should be
said in behalf of the American citizens at a time when this foreign legion is
attempting to hush any opposition to cancellation."
The answer made by Andrew W.Mellon. then Secretary of the Treasury,
to those who argued in 1927 for cancellation, was held by Senator Johnson
to be entitled to "a high place in our literature." Mr. Johnson said Mr.
Mellon had written "that which is eternally true," that if Europe does not
pay, the American citizens must.
"And it will be remembered," said Senator Johnson, "that I have been
known to criticize Mr. Mellon on many occasions. But Mr. Mellon wrote
a policy for us then that ought to be adhered to in every detail; he was not
a member of this foreign legion, and he knew that our own citizens must
not be burdened further."
ik He quoted from a statement by President Wilson in 1920 concerning the
position of this country and pointing out that no power had been given by
Congress to change debt obligations.
Recalls Peace Conference.
"If that position has been altered, it has been done without any authority
of Congress," declared the Senator. "It has been the position of the United
States Government constantly since that time , even though it might have
been partially altered by the action taken in 1931."
Commenting on the role of the United States at the time of the Versailles
treaty, Senator Johnson declared that it was "a glorious page in the history
of our country that when they sat about the peace table our country asked
neither booty nor spoils." He said that the European countries on the other
hand had taken "everything of value that could be taken from the central
ellhood."
,
powers except ll
"I can not agree with representatives of the foreign legion here who talk
of a common enterpris in which we engaged and demand not only that we
be a part of the enterprise but that we pay the whole price of it while
European countries take all the booty and the spoils.
Debt Funding Operations.
Discussing the activity of the Jebt Funding Commission, and quoting
from recommendations that it would be to the interest of this country to
demand that our resources not go to countries which do not keep their
obligations, Mr. Johnson said:
"I shall ask that every precedent oe enacted into law, and demand that
our resources be not permitted to go into countries which do not honor their
ooligation to us."
He maintained that countries crying for cancellation and 'Americans
barking at our heels" little understand wnat the debt settlements amount
to, that toe settlements cancel the principal of the obligation.
Question of Who Pays Debts.
"Cancellation in a double sense becomes a misnomer," he said. "There
is no such thing as cancellation of the foreign debts, The only question is,
Who pays? Shall Europe pay her just obligations, or shall America pay
Europe's just obligations to America?" He contended that the United
States was "generous to a fault" in its original settlements of the debts.
Calling attention to unemployment conditions in this country, Senator
Johnson said: "You must suffer in silence. You must have your unemployed, your disaster, your want and your hunger, but let your charity be
felt among nations across the sea.
"Beware, ye gentlemen of finance and ye who govern this country and ye
who represen.; the idea of cancellation and modification. In some part of
the country to-day people are taking the word moratoria to themselves.
I don't blame the farmer of the Middle West and the worker without a job
when he crys aloud against a government that will give a moratorium to
Europe, and forget him."
Cites Moratorium.
From a discussion of conditions as a result of the depression in the United
Johnson
turned
his attention to the moratorium of 1931,
States, Senator
and declared he did not know how or where it originated. He was aware,
however, that European nations are now using the moratorium as "an
excuse" for further delay.
The California Senator's observation was followed by an interruption by
Senator Robinson (Dem.), of Arkansas. Minority Leader, who advised that
the "suggestion'for the moratorium came from "this side of the Atlantic,"
and Senator Gore (Dem.), of Oklahoma, interjected it had come from
Congress. The colloquy was further extended by Senator Reed (Rep.),
of Pennsylvania, who told the Senate that "as a matter of fact" the moratorium was proposed by President Hoover in response to an appeal by Presi
dent Von Hindenburg of Germany.




Ian. 21 1933

Position of Congress.
"I do not know a thing about it," Senator Johnson resumed. "I have
information only that It did not come from Congress and that America did
not desire it, and that Congress wrote a policy into the moratorium resolution saying it would not agree again to delay.
"That a policy cannot be misread. It can not be misconstrued. Yet
the international newspapers and the international bankers and the foreign
legion of Americans who insist on caring for Europe and not the United
States, they are trying to read that declaration otherwise."
Cancellation Discussed
"The most brutal thing said by those in favor of cancellation is: 'Take
what you can get or you won't get anything at all'," continued the California
Senator. Attacking this policy he demanded: "Suppose we won't get
anything at all? America holds her head high; her self-respect is untouched."
Mr. Johnson maintained that it is "unnecessary and undignified for the
United States to appoint a commission now to enter into a discussion of
debts."
Senator Robinson expressed the belief that it would be "almost impossible" for this country to respond to demands for a conference until the
nations had met their obligations or show a justification for their inability
to pay. He said he referred particularly to France which was "in a strong
financial position when it declined to meet its obligation."
Attitude of Foreign Nations.
Senator Barkley (Dem.) of Kentucky asserted that It was "ridiculous
that such a small percentage of its national budget could not be paid by
France."
"It is ridiculous, of course, a perfectly absurd proposition" responded
Senator Johnson. "It is the silliest sort of tommyrot to say these nations
can not pay their installments. The only question is whether they want to
pay, not what they can pay.
While I deprecate the attitude of countries abroad, my feeling is more
intense toward those who live in tale land who seek to render those defaulting
nations in every contest with ours all the aid and all the comfort they can.
The international bankers are the ones who led us into this morass. It is
our Government and moratorium that has caused much of the trouble."
He declared that "no administration can settle these debts, no international bankers will be allowed to revise them, no international press can
drive the American people into revising them. The only one who can do it
is the Congress of the United States and the Congress of the United States
will not do it for the Congress of the United States is still an American
Congress."
Relative Purchasing Power.
Senator Reed declared that "no more trivial argument had been put
forth than that of recent days, namely, that to take the burden off the European taxpayers and put it on the American taxpayers would increase American prosperity." To the extent that you Increase Europe's purchasing
power, you decrease the purchasing power of America," he said.
He drew a distinction between the nations whicn have paid their indeotedness to us and those who have repudiated them. "I honor the British for
the way they have kept their obligation under great difficulty and I hope
if we confer with them that we will meet them half way," he said. "The
idea that France should be met in the same way is preposterous. I don't
believe there would be a single dissenting voice to the contention that so
long as they remain in default, we must refuse to discuss tne subject with
them at all."
He maintained that the moratorium had not impaired the dent obligations.
Tells of Treasury Deficit.
Senator Shipstead (Farmer-Labor), of Minnesota, held that there is "not
a country in Europe that has a treasury deficit anywhere in comparison
with ours, has in proportion to its population such a large percentage of
unemployment, has so many mortgage sales on account of indebtedness."
He asserted that certain banking houses in this country have served as
financial agents of foreign governments and "have dominated the foreign
policy of this Government and this people."
Senator Borah, in opening his discussion, said it should be conceded that
the debts of the foreign nations to this country are justly owed, are due
and payable, and that this country has been fairly liberal In its adjustment
of the debts. He declared that II the other nations had followed the example
set by President Wilson in refusing to claim any territories or reparations,
the world would be 50 years in advance of its present state with regard to
Problems growing out of the war.
"Unless something more valuable than debts themselves, unless attachments can be brought about bringing other benefits, I can see no reason for
discussion of debts. If we can open the market of the American farmer.
revive trade and commerce, re-establish the monetary system on a sound
basis and reduce armaments of tne world, it will be of more value to toe
People of the United States than these debts."
Currency Standards.
Calling attention to the fact that Franco and this country are the only
two nations of any moment on the gold standard, Mr. Borah said:
"We know the gold standard has failed utterly when called upon to meet
the stupendous burden of the World War. There is no hope for the American
farmer to get back any part of the world trade or his market so long as he
has to compete with nations producing the same commodities and operating
on a debased currency."
He said that in many portions of this country the people are approaching
a state of barter because of lack of a monetary medium.
"It is my firm belief tnat without adjustments of post-war problems,
there can be no real return of prosperity to the American people," he said.
He maintained that the European nations instinctively raised their
tariff boundaries in 1922 and 1923 to offset the dumping policies brought
ar
oa
ldtions.
about
epg
w
began to flow from the debtor to the creditor nations, it
bythe
was soon found that Franco and the United States had 70% of the $11,000,000.000 of the world's gold, he stated. "The price of commodities oogan to
fall and the movement of gold has kept in harmony with the price of commodities from that time to this. There was not enough gold to meet the
obligations and collapse inevitably came."
He called attention to toe use of silver as a medium of exchange for the
last 3.000 years and urged its restoration in the Orient, where, he pointed
out, Great Britain had forced it out in 1925.
"Cancellation would not result in better economic conditions in the
world," he said. ''It is too small an item. It would not serve to readjust
trade. Things standing in the way are larger and more important factors.
We have drifted until now we are perilously near the brink. Conditions
now are very little different than confronted us during the war."

While our item bearing on the letters of Secretaries Mills
and Stimson also refers to the debate on Jan.9 we are giving
here the following from Washington advices on that date to
the New York "Times":

Volume 136

Financial Chronicle

Heated words on the war-debts question passed between Senators Borah
and Johnson to-day as they engaged in one of the sharpest disputes the
Senate has seen for a long time.
The words "untruth" and "falsehood" flew back and forth between the
two veteran Senators, when Mr. Johnson charged the Idahoan with withholding vital information during Senate debate on the moratorium in
December 1931. To this Mr. Borah quickly replied that all he knew, as
stated to day and in a speech last Wednesday, was available to Senators in
public documents and newspaper dispatches at the time. . . .
Mr. Borah. restating his contention that the French believed reconsideration of war aeots would follow the revision of reparations at Lausanne, was
asked by the Californian whether he should not have made this observation
when the debt moratorium was being considered oy the Senate. . . .
Stimscm-Mills Reply Stirs Borah.
When the Stimson-Mills denial of Senator Borah's assumption was made
public to-day, Mr. Borah made a determined effort, through quotations
of public documents and press dispatches, to establish his contention.
He was then taken to task by Mr. Johnson for not having given the elaborate picture of the Hoover-Laval negotiations occurring In October. 1931
when the Senate considered the one-year moratorium on debts and reparations, ratifiea in December.
Assails Silence on Moratorium.
Mr. Borah replied that his statements were "public property" and that
they "were known to all men," adding, regarding his speech, that "there
was no new information in it."
Senator Johnson, with some heat, asked if Senators were expected to
depend "upon some newspaper reports when the facts rested in the bosoms
of certain memoers of this body who knew them and nobody else except
themselves knew them?"
"Beyond that," he inquired, "why not tell the American people, not
that they must look to the New York "Times" or even tne "Washington
Post" to ascertain the facts of what may have transpired, but that they
knew the facts and that those facts ought to have been stated to their
brethren upon this floor."
Senator Borah replica that what he had described was available from
official documents, and Senators laughed when Mr. Johnson remarked
that "the Senator from Idaho possess a wealth of information that the rest
of us do not possess."
To this Senator Borah replied:
"I am willing to admit it."
Senator Johnson now recalled that Borah did not join In debate on the
moratorium, but locked his wealth of information "In his own heart."
Senator Borah replied emphatically that this was "without foundation
of fact," but conceded he had not joined in the debate, as "I was in favor
of the moratorium."
"And when we were debating what had transpired during Laval's visit
did the Senator utter a word influencing it?" asked Senator Johnson.
"I uttered it to the public press," Mr. Borah replied.
"The Senator uttered It to the public Press?"
"I grant the Senator that he can utter to the public press far beyond the
rest of us." Senator Johnson went on. "We can dismiss that aspect of It."
"I trust the Senator *ill not permit any feeling of that kind to control
his judgment," countered Senator Borah, "but, Mr. President. there is
nothing within my knowledge that was not within the knowledge of the
Senator if tno Senator desired to read the public press and desired to read
public documents."
"That is absolutely inaccurate, and, to utilize the words of the Senator
from Idaho, It is utterly without foundation oecause I nave not the access
to the White House nor the conferences nor the confidence tnat the Senator
from Idaho has," Senator Johnson exclaimed, his face flushed.
"I grant that very readily. I grant the Senator's stature. I grant his
greatness. I grant him anything he desires in the unlimited wisdom he
attributes to himself. I accord that reaally and he has it.
Borah Offers Kindergarten.
"But for the love of heaven, if we get another moratorium or another
fight upon the debts and he knows anything about them, let him tell his
colleagues and tell the American people. It is not in keeping with the Senator
from Idaho to sit mute and silent during the discussion of such a question
as the moratorium."
"I assume that the able Senator from California reads public documents,"
flashed back Senator Borah. "I assumed that he kept himself informed.
Hereafter I shall start a kindergarten."
Again laughter averted a threatened scene and Senator Johnson replied:
"All right, I trust the Senator will start a kindergarten."
"He will have the Senator from California for the first student," Senator
Borah said, now smiling.
"He will have a kindergarten which the Senator from Idaho has not
Observed in this discussion," said Senator Johnson, closing the debate.
"It mrill be a kindergarten of disclosure and of good faitn."
Several hours before. Senator Reed had put into the record the letters
addressed to himself oy Secretaries Stimson and Mills.
Borah Cites Press Articles.
Senator Borah opened his speech by stating that "eliminating the conclusions in the letters" he would have "very little, if any, difference with the
writers of the letters."
Recalling his statement of the French viewpoint on Wednesday, he said
that "all the events he had cited" were a matter of public record, citing
specifically a dispaten to the New York "Times"on Oct.8 1931 which stated
that leaders of the Senate and the House, in conference with President
Hooves, had declined to bind themselves to conversations Mr. Hoover might
have with M. Laval concerning international debts.
"Mr.President, that news item stated the record just about as accurately
as it could be stated," said Mr. Borah.
He then cited a statement by President Hoover issued after that conference, which he said was changed from its original form during the
conference "In such a way as to leave no implication that the conferees were
committed in advance to whatever result might follow his discussion of
the question of such other arrangements as are imperative during the period
of the depression in respect to the governmental debts.
Effect on French People.
"I do not contend," Senator Borah said, "that there was a specific agreement that so and so would be done, but there was a statement to the effect
that the international obligations would be discussed and considered in the
light of present conditions, and the French people so understood it."
At another point Senator Borah reiterated tnat "it is perfectly plain that
toe question of International debts and international obligations was discussed at length between the President and the Premier."
When he had finished, Senator Johnson rose and told the Senate to "keel)
in mind that France has denied substantially the indebtedness for 12 years
past."




407

Recalling the approval of the moratorium, he referred to "the little
band," including himself, which fought the moratorium.
"No aid came to us then," he said, looking at Senator Borah, "to the
very few men who were making that fight, from the men who were a part
of the White House conference, and nothing was told to the Senate or the
people or any member of Congress as to what then occurred."
Senator Borah arose to dispute the contention of secrecy, and the argument was on.

Great Britain Repurchases Part of Gold Paid for War
Debt—Cut of $25,101,200 in Metal Held for New
York Reserve Bank—Considered Prelude to Gold
Standard Return on Debt Solution.
That the Bank of England has repurchased a substantial
part of the gold which it turned over to the Federal Reserve
Bank of New York on Dec. 15 to consummate the British
war debt payment to the United States was indicated in the
daily gold statement issued on Jan. 19 by the Reserve Bank,
said the New York "Journal of Commerce" of Jan. 20,
which went on to say:
It was generally believed that this reversal of policy on the part of the
Bank of England followed a decision to conserve its gold stock preparatory
to a return to the gold standard. It is taken for granted in Wall Street that
sterling will not be restored to gold until the war debt question has been
settled.
The statement issued by the Federal Reserve Bank showed that the
amount of gold earmarked in London for its account had been reduced by
$25,101,200. At the same time the Bank reported that 86,527,000 gold
had been imported from England. It is not possible as yet to determine
whether the $6,527,000 was gold purchased in the London open market or
whether it was part of the stock earmarked in London. It has been customary for gold to be reported as released from earmark in London only
after actual arrival in New York,
The Federal Reserve Bank of New York had $51,091.000 of gold earmarked with the Bank of England at the close of business Jan. 18. The
operation announced yesterday cuts this amount in half.
Federal Reserve Bank officials refused to comment upon the sudden
large reduction in American gold stock in London. It was pointed out that
transactions with foreign banks of issue are matters of confidence which
cannot be given the same full publicity as purely domestic business.
It was taken for granted that in paying for the gold the Bank of England
paid for it with dollar balances and not in sterling. When the war debt
payment was made in December it Was not possible to remit in dollars because British exchange resources had been greatly reduced as a result of
the refunding of the War Loan 5s.
Moreover, the payment in gold threw a strong light on the difficult exchange position and was considered desirable for that reason. Since
December, with the rise in the pound British foreign exchange resources
were built up again. Such exchange is held chiefly by the equalization
fund, a special account of the British Treasury whose transactions are not
officially reported.
It was doubted in financial quarters that the publicity value of payment
In gold, Indicating the Impossibility of continued war debt payments, would
have been surrendered without the assurance of some settlement. The
conference between President Hoover and Governor Roosevelt, it was
thought, gave added weight to this inference.

Associated Press accounts from London yesterday (Jan.
20) said:
A report from New York that the Bank of England had bought a portion
ofthe Federal Reserve Bank's gold earmarked here for payment of England's
war debt instalment, has aroused interest in the money market.
Official confirmation was lacking, but bullion brokers said they believed
the transaction may have been on behalf of one of the Bank's clients, or for
the exchange equalization fund which recently purchased foreign currency
and possibly utilized its balances to buy gold from New York.
In other quarters it was said the Bank of England itself has not been
purchasing gold, as its weekly returns have not shown any influx.

The New York "Evening Post" in its issue of last night
(Jan. 20) regarding the gold purchase said in part: wanted to

Conjectural explanations were that the British Treasury
retain the gold as preparation for a return of England to the gold standard,
when the Bank of England would want all the gold it could get; that the
British Treasury wanted to avoid paying the cost of transportation to
New York, which would amount, perhaps, to $75,000; or that the gold
was bought in order to enable a British syndicate to purchase control of
Boots Pure Drug Co. of England from the United Drug Co. The American
company owns 1,125,000 of the 1,500,000 shares of Boots Pure Drug of
el par value.
Sale Was Barred.
Sale of the stock to a British syndicate was barred by Neville Chamberlain, Chancellor of the British Exchequer, on the ground that England
could not afford to lose the dollar exchange required to make the payment
of something like $25.000,000.
Any suggestion that the British Treasury might fear inflation of the
currency here and therefore prefer the gold to dollars was not welcome in
banking circles.
Failure to explain the deal may well be due to the fact that the Reserve
Bank considers itself without authority to disclose any operation by its
client—the Bank of England.

J. M. Balfour, British Financier, Doubts Early Gold
Basis for England—Believes Metal Must Be Decentralized First.
There is no prospect that England will return to the gold
standard in the near future,in the opinion of James Moncrieff
Balfour, British financier, who has just arrived from Liverpool on a business trip to New York and Montreal, said the
"Wall Street Journal" of Jan. 20, from which we also quote:
Mr.Balfour is chairman of three investment trusts and a director in 15.
besides being on the board of an insurance corporation.
He believes England could scarcely resume gold payments until international conditions have been readjusted and money gold de-concentrated.
At the present time France and the United States have about 66% of the
world's gold supply and as a result the exchange of goods between trading
countries is seriously affected, he says.

408

Financial Chronicle

The debt situation, as Mr. Balfour sees it, cannot be ironed out by any
means now visible and it may in the end become necessary to cancel all
Inter-governmental debts in order to restore trade activities.
"High tariffs will have to be lowered. There can be no proper readjustment of the foreign trade of the world until these tariff blockades are
removed."
In regard to investment trusts in England, Mr. Balfour said that since
the crash of 1929 began, the depreciation in their assets has averaged
perhaps from 30% to 50%, the older organizations doing relatively better
than the newer ones.
"Trusts in Great Britain," he added, "follow the practice of achieving
the greatest diversification not only in regard to industries but also as
concerns the countries in which their investments are located. Some trusts
have as many as 300 different securities in their portfolios, whereas in the
United States 100 would be considered an unusually high number to hold."

Tariff Expected to Be Adequate to Bar Non-Gold
Imports—Views of Secretary of Commerce Chapin.
Under date of Jan. 18, a dispatch from Washington to the
New York "Journal of Commerce" said:
Adequacy of the machinery set up under the Hawley-Smoot Tariff Act
to meet the needs for increased protection raised by depreciation of foreign
currencies is expected by Secretary of Commerce Chapin to be shown
conclusively during the current year.
Explaining that a number of industries, including particularly rubber
manufacturers, have laid before the Department appeals for aid in meeting
Increased foreign competition made possible through depreciated currencies,
Mr. Chapin expressed belief that the next few months will show conclusively
whether the Tariff Commission, operating under the Tariff Act, can handle
the situation arising from the depreciation.
While steadily declining import values do not indicate the dumping
of merchandise in markets here, he pointed out, extremely serious conditions
prevail in some industries in which non-gold countries have particular ability
for competition. While the actual volume ofimports may not be increasing,
he said, they do, in most cases, represent an increased proportion of the
American demand.

Idle Funds Pile Up in English Banks—Reports for 1932
Show Rise in Deposits and Drop in Loans for
Investment—Trade Slump Reflected.
In a London cablegram, Jan. 18 to the New York "Times"
it was stated that an indication of the way idle money is
piling up for lack of investment opportunities in the period
of depression is afforded by the annual figures of English
banks so far available. In the case of each one there is a
big increase in deposits and a decrease in loans advanced for
investment or industrial development, said the cablegram,
which went on to say:
The Midland Bank's accounts made up to Dec. 31, show deposits of
£419.281,966, as against £399,605,549 at the end of 1931. Acceptances,
which shrank considerably in 1931, have made a modest recovery, but other
engagements which were about .£1,000,000 higher in 1931 have dropped
more than £5,000,000, due presumably to the decline in international trade
owing to exchange restrictions. The Bank's contracts for foreign exchange
amount to £24,824,748.
Trade depression is held responsible for a reduction of more than £29,000.000 in advances, the ratio of which to deposits is now a little more than 40%.
The decrease in loans is almost equaled by an increase in bills.
The National Provincial Bank's accounts also show substantial growth
In the funds at its disposal, a large increase in investments and bills and a fall
in advances. Deposits have risen by nearly £30,000,000 to £291,822,828.
Acceptances show a bigger decline than in the preceding year and advances
have fallen more than £20,000,000.
The District Bank's figures show deposits on Dec.311932.of £56,829,351,
an increase of E6,500,000 over a year ago. Advances by this Bank have
decreased by more than £2,250,000 to £17,690,457 and their proportion to
deposits has fallen to 31%.
According to incomplete unofficial figures, deposits at Barclay's increased
by £46,000,000, but advances have dropped from £172,000,000 to £153,000,000.

Lloyd George Sees World "Whirling to Catastrophe"—
Praises Mussolini and Stalin.
Mussolini and Stalin are the only men who grasp what is
occurring to-day in a world "whirling toward catastrophe,"
but unfortunately the leaders of the Italian and Russian
governments "have insufficient resources," David Lloyd
George said on Jan. 16, on the eve of his 70th birthday.
The foregoing is from United Press advices from London,
Jan. 16 to the New York "Herald Tribune" from whicn we
also quote the following:
The fiery Welshman discussed past events, present problems and his own
political future with a special correspondent of "The News-Chronicle" at
Criccieth, a Welsh watering place. He had no praise for the present
National Government of Great Britain, which he said was "bluffed by
Premier Bennett of Canada, defied by Japan and bullied by the United
States."
"The United States Government was moribund, like a wasp when the
summer has past, with just one sting left in its tail." Lloyd George said.
"And the Government stung us badly, to the extent of £30,000.000 ($100:
000.000.)"
"The News-Chronicle" said Lloyd George was a picture of mental and
physical fitness. He was confined to his home last week by a cold.
The interview indicated the end of a great human and political epoch in
the complete and final severance of Lloyd George from "official Liberalism,"
the correspondent said. The war-time Prime Minister revealed that he
would not seek office again. He saw nothing but a dishonorable grave for
Liberalism "which is in an advanced state of creeping paralysis." He said
he did not differ fundamentally from the Labor viewpoint, but the Labor
Party was too far behind in its program for him to consider joining it.
"We are not confronted by an ordinary trade cycle or crisis, but by fundamental and gigantic changes, and all efforts to deal with them have been
superficial and trivial," Lloyd George said.




Ian. 21 1933
England's Return to Gold Urged by L. G. A. Trip of
Bank for International Settlements.
Associated Press advices Jan. 15 from Basle, Switzerland,
stated:

L. G. A. Trip, a director of the Bank for International
Settlements
and Governor of the Bank of Holland, to-day urged the
early return of
England and the Scandinavian countries to the gold standard.
He spoke
at a meeting of the governors of the Bank for International
Settlements.
Gates W. McGarrah, President of the World Bank, outlined
the financial
situation confronting the United States, but it was reported
he made no
mention of rumors that he would retire from his present
positions in May.

Paris Holds World Conference Must Take Up Gold
Standard.
According to advices (Paris) Jan. 13 to the New York
"Times" it is still hoped in financial circles of Paris that
the world economic conference will in the end produce
beneficial results. Continuing the message said:
In particular, it is felt to he of the first importance that
agreements
should be reached in principle on the gold standard. This is
considered
here as an essential condition for recovery in normal international
dealings
and in the general credit mechanism.
But experienced people here do not deceive themselves regarding the
results which any conference of the kind can attain, unless the delegates
take a broad view of the problems involved. If, as has so often been
the
case in conferences of the sort, the governments represented were to subject
their own judgment to narrow views prevailing in public opinion in their
own countries, the result will be in doubt.

Francis W. Hirst Declares Redistribution of Gold
Needed—Says "Best" English Economists Deny
Technocracy Theory.
Francis W. Hirst, in a cablegram (copyright)from London
Jan. 10 to the New York "Herald Tribune" said:
The question of reconciling sterling currencies with the gold standard
Is again prominent, but the solution of this problem obviously depends
on successful co-operation between the leading governments and Central
banks for redistributing and economizing on gold. Otherwise roadoption
of the gold standard by sterling countries might cause another collapse
of gold prices by making the yellow metal scarcer than before.
During the last year, the newspaper "Economist" calculates, wholesale
prices in Great Britain have fallen 7% compared with a fall of about 13%
in the United States. The city apparently believes that the Roosevelt
Administration will recognize the necessity of dealing with war debts,
tariffs, quotas and exchange restrictions along with currency reform.
These obstacles to world recovery seem so closely inter-connected that they
cannot be isolated successfully.
The New York "Herald Tribune's examination of technocracy is provoking lively reactions here. The best economists deny that the world
can be ruined or unemployment permanently be aggravated by improved
machinery. The real cause of the glut is round in the rapid growth of
barriers which prevent agricultural and industrial nations from exchanging
their surplus products. If labor saving machinery were the main
cause
of unemployment, why did it not operate before the end of 1929?
The London Stock Exchange has started the new account in a fairly
cheerful mood. Profits and dividends of the British banks are reassuring.
The Hongkong and Shanghai banks' statement is exceptionally
good,
considering the turmoil caused by the conflict with Japan.
The Transvaal mining market has quieted down. Exchange is nominally
95%, South African to 100 pounds sterling, but sterling cannot be bought
at this rate and arbitrate with Johannesburg is difficult. Home industrial
and railway markets are irregular, but textile shares look firm on hopeful
reports from Manchester and Bradford. All classes of wool are hardening
and a further rise is anticipated when the London wool sales open
next
week.

The Gain in Gold by England in 1932—Year's .£17,869,000 Net Increase Contrasts with £34,581,000 Loss
in 1931.
Under the above head, a message from London under
date of Jan. 13 had the following to say:
Gold imports into Great Britain, as officially reported for the
month of
December, were £11.961,000, exports £21,257,000, leaving an excess of
exports amounting to .C9,296,000. This makes the total gold
imports
for the year £152,179,000. as against £98,302.000 in 1931.
The year's
total gold exports were £134,309.000. against £132.883,000 in the preceding
year.
England's net gain in gold for the past year was thus
£17,869,000, as
against a net outgo of £34.581,000 in 1931. Last year's
imports and
exports are classified as follows, by the principal countries of origin
and
destination:
Imports.
Exports.
From—
To-Transvaal
£65,920 000 France
/181,315,000
India
55,737,000 United States
24,120,000
United States
8,058.000 Holland
19,900,000
Australia
5,332,000 Switzerland
3,901,000
Rhodesia
3,718,000 Belgium
3,458.000
West Africa
1,545,000 Germany
162,000
Great Britain's imports from Ind a increased last year by
more than
£40,000.000, as compared with 1931 the Transvaal also sent
£16,500,000
more than in the preceding year. Exports to the United
States were
£20,000,000 larger than in 1931 and France took £9,000,000
more but,
the gold sent to Switzerland decreased £11,000,000 and Belgium
took
about £4.200,000 less. Both import and export movements were
larger
than in many years past.

London Reported Opposed to Return to Gold Payments
Until War-debt Controversy Is Settled.
In its Jan. 16 issue the New York "Times" carried the
following item from London Jan. 13:
The position set forth by Great Britain's representative
at Geneva
in the discussions of the League's Committee regarding return to the
gold
standard is endorsed with little qualification by leading London bankers.

Volume 136

Financial Chronicle

409

Until a few months ago, opinion was divided in the matter of conditional
or unconditional resumption of gold payments. More recent events,
however, appear to have convinced pretty much all financial London that
until some war debt settlement is reached it would be extremely unwise.
if not indeed impracticable, for Great Britain to resume gold payments.
There is apparently no question of Great Britain endeavoring to strike
a favorable bargain on the war debts by using its gold standard policy
for that purpose. The point made in the city is that if England were to
return to gold after an inadequate settlement of the inter-governmental
war indebtedness, or with imperfect preparation for safeguarding the gold
standard, it is reasonably certain that sterling would be unable automatically
to withstand the pressure it would then be called upon to bear.
However necessary such ultimate return may be to international stability,
it is commonly remarked that the United States and France must make
up their minds that the conditions on which legal stabilization may safely
be attainable have not yet been reached. Summed up, the atittude of
financial London is that Great Britain will not place unreasonable obstacles
In the way of stabilization of the pound sterling, but that she must make
quite certain, when she does return to the gold basis, that other countries
can be counted on to take their proper part in producing conditions which
will insure uninterrupted continuance of gold payments.

things have gone too far, but each of them feels it difficult to take the lead
In the other direction.
"These events of 1932 point the way to the chief tasks of 1933. What
can the economic conference itself do? Well, we must first think of the
conference as including not only the meeting itself but all the preparations
for it. On technical and complex questions like these a large international
conference of governments can never find a solution. All it can do is to
adopt and make effective a solution that has already been found.
"One thing at least is clear, if we enter this conference without a plan
we shall certainly come out of it without a remedy. The conference,
that is to say, must be prepared, or it is bound to fail, and preparation
does not mean just collecting information. It means exchanging views
and discovering beforehand along what main lines agreements may be
possible.
"I don't believe myself that we should now look for final solution. We
are in a crisis, and we want to get out of it. Of course, we must get out
of it by methods which would not mean a recurrence of trouble later.
"Underlying all these Immediate and detailed problems is the fundamental question; Will America now take a responsibility commensurate
with her importance in building up the framework of a world order, political
as well as financial and economic?"

London "Times" Urges Clean Slate on Debts—Warns
President-elect Roosevelt of Peril in Compromise.
Asserting President-elect Roosevelt's recovery program
will be doomed in advance unless the war debts question
is settled, the London "Times" renewed on Jan.9 its demand
for a final lump-sum debt settlement on the lines of the
Lausanne agreement. The New York "Times" in a London
wireless message Jan. 9 further indicated as follows what
the London "Times" had to say:

Reported Removal by British Treasury of Restrictions
on Trade—Acts to Permit Domestic Capital Financing.
From the New York "Herald Tribune" we take the following (United Press) from London Jan. 14:

Nothing the President-elect can do after March 4 will revive business
or employment in America, the "Times" warns, until the debts problem
is swept away. Similarly it maintains there can be little hope of substantial achievement from the World Economic Conference unless the
debts matter is disposed of first.
Declaring "it is all to the good that Roosevelt is familiarizing himself
with the debt problem beforehand," the "Times" draws an analogy between
the present situation and that preceding the Lausanne Conference.
"It can only be met in the way the Lausanne Conference agreed to
meet that situation," the "Times" declares, "by wiping out the whole
entagnlement and accepting a final payment in full settlement. No
moratorium or scaling down of payments would be of real service any
more than were the various concessions made from time to time to ease
the reparations burden upon Germany, and which, by prolonging friction
and unrest, only postponed the final breakdown.
"Nothing but a final, complete settlement on the lines of Lausanne
will really clear the air and avert what is otherwise inevitable, a general
default on the part of the debtor countries who, despite obstacles placed
in their way by American policy, have done their utmost to most their
obligations, but who cannot perform impossibilities."

Sir Arthur Salter Puts Hope in a World Parley—But
British Economist Warns Nations Must Seek
Accord Before Economic Meeting—Sees Slow Recovery—Praises Federal Reserve, Vast British
Conversion and Lausanne Settlement.
Sir Arthur Salter, British economist, in an international
broadcast from London on Jan.8 urged the world to prepare
for the coming monetary and economic conference by seeking
agreements before the meeting. Sir Arthur was formerly
director of the economic and finance section of the League
of Nations, it was noted in the New York "Times" of Jan. 9,
which reported his speech as follows:
His address was made for the International Radio Forum and was
re-broadcast in this country by the National Broadcasting Co.
"We enter the new year with a new hope," he said, "Anxiety, deep
anxiety, still remains, but there is a real prospect that this year will see
steady progress in recovery. It will not be rapid or dramatic. It will
not be without setbacks, but it will come if we help it.
"The world, however, is still poised between two fates. This world
depression is not merely a series of national depresssions, so we certainly
need concerted international action to help us out of it. This is what
makes the World Economic Conference of such Importance. It is the latest
effort to impose the control of collectively wisdom upon the drift of events.
Three Notable Wise Policies.
"This last year has seen three Instances of wise policy that have been
for the general interest and not merely the interest of a particular country.
One of these instances is American, one English and one European.
"First is the monetary policy pursued by your Federal Reserve System.
You put an end to hoarding, of panic and the withdrawal of foreign balances
by deliberately making money cheaper and more plentiful. I hope you will
persist in this policy and will aim not merely at stopping the fall of prices
but helping them up. After deflation, the world needs reflation.
"A second instance of wise policy last year is the English conversion
operation by which about £2,000,000,000 of Government debt was put
on a 3Ji% basis. The importance of this is not the immediate saving to
the English budget but the lead it gives to general reduction in the rates of
long-term interest.
"One of the chief evils from which the world is suffering to-day is the
Intolerable burden of indebtedness. I am not speaking just of intergovernmental indebtedness but an kinds of indebtedness, private and
public, and the fall in the rate of interest, which certainly helped to relieve
this burden.
"The third instance is a European one, the settlement of reparations
at Lausanne. The weight of inter-governmental indebtedness left by
the war has certainly been one of the chief causes of the whole financial
crisis. One part of this reparations problem it was in the power of Europe
to settle, and Europe has done so.
Tariff Competition Remains.
"There is. unhappily, no similar Instance of broad-visioned commercial
policy, that is, in the sphere of tariffs and other impediments to trade.
On the contrary, the game of erecting higher walls than ever has been
played with increasting ardor. All countries probably feel now that




Removal of restrictions on new capital issues to allow British industry
and trade the benefit of cheap money, were announced to day by the
Treasury.
Restrictions were not removed, however, from foreign issues or issues of
which the proceeds are remitted directly or indirectly to countries outside
the British Empire; or from the optional replacement of existing issues
by new 1£381164 if they rank as trustee securities and involve either underwriting or the invitation of the public to subscribe new funds.
The restrictions were unposed to enable the Government to carry out
conversion of the 5% war loan, now practically completed.

"Big Five" English Banks Show Smaller Profits.
Canadian Press advices Jan. 10 from London were published as follows in the New York "Herald Tribune":
All five of the big English banks show a decline in profits for the year.
although the decline is not large. Only two of them are reducing their
dividends. Lloyds has declared 12% instead of 13 1-3% as formerly,
and the National Provincial Bank has declared 15 as against the former 16%.
Barclays Bank is again paying 14%. the Midland Bank 16% and the
Westminster Bank 18%. Alexanders Discount Co. is distributing 19%
on its ordinary stock as against 15% formerly.

British Ship Owner Proposed Subsidized Ship Tax—
Urges Levy on All Entering Empire Ports.
A proposal to tax all subsidized vessels entering British
Empire harbors has been made by W.L. lichens, Chairman
of the great shipbuilding firm of Cammell, Laird & Co.,
according to a London cablegram Jan. 13 to the New York
"Times", which also said:
Mr. Hichens told an audience at Birkenhead that the foreign subsidies
amount to 8150,000,000 a year and constitute "a terrific handicap" to
British shipping.

Gold Sterling Basis Sought of Great Britain for Debt
Cut by United States—See Restoration Loan Here
Should Negotiations Prove to Be Successful—
American and British Bankers in Agreement
Basle Move Seen to Effect Stabilized Currency.
From the New York "Journal of Commerce" of Jan. 17,
we take the following:
If the United States makes restoration of the pound to the gold standard
its condition for cutting the British war debt a loan to fund a portion of
the reduced debt will become probable, leading bankers said yesterday.
Despite the propaganda throughout Great Britain in opposition to a return
to gold, it was said, the most influential London bankers strongly favor
currency stabilization.
The stabilization of sterling on the gold standard, and not the scrapping
of armaments or reductions in tariffs, should be made the basis of war debt
negotiations, it was said. Negotiations along these lines should be opened
as soon as the new Administration comes into power. This line of bargaining, it was pointed out, could readily be dealt with through diplomatic
channels.
Export Trade.
Bankers held that from the American viewpoint the chief gain through
a reduction of war debts would be found in an expansion of export trade.
This goal, it was said, will never be achieved as long as sterling is subject
to possible market depreciation, with no real safeguard against internal
inflation.
Bargaining for tariff reductions, it was held, would prove useless. This
question should be taken up independently after the questions of war debts
and international exchange had been solved.
Terms but Held Irrelevant.
Solution of the exchange problem needs be attacked through restoration
of the pound alone, it was said. With the pound on the gold standard
bankers and leading industrialists of other countries would be likely to use
their influence to stabilize their own currencies.
British Attitude.
With few exceptions, it was said. British bankers strongly favor the
restoration of the pound to the gold standard and would like to see war
debt negotiations carried out along these lines. It was pointed out that
the refusal of the United States to cut the debts unless the pound were
stabilized would be likely to influence general opinion in England. reducing
present opposition to a return to the gold standard. The fact could readily
be emphasized that such a return would be necessary in order to achieve
the reduction in war debts essential to British economy.
It was recalled that the British members of the board of the Bank for
International Settlements last summer indorsed the minute of the World

410

Financial Chronicle

Bank favoring the return to gold. Yesterday dispatches from Basle indicated that efforts are being made to bring about at Geneva a common declaration by France. England and America favoring the return to gold.

Program Adopted for World Economic Conference—
Geneva Experts Agree that Eventual Return to
Gold Is Economic Necessity.
In a Geneva cablegram Jan. 18 to the New York "Times"
it was stated that at a late meeting that night, the Preparatory Economic Commission adopted the text of the agenda
it will propose on the gold standard and other monetary and
credit questions to the London conference. The "Times"
cablegram continued:
This text, which is in the form of an outline, shows, implicitly rather than
explicitly, the conditions the experts deem necessary for the restoration
of gold.
Its chief importance, in the view of one of the American experts, lies
In the fact that all the members of the Commission, including the British,
now agree without mental reservations to return to gold with the main
question now being the best time for this return to occur. The text of
this part of the agenda follows:
I—Monetary and Credit Policy.
1. Conditions under which the restoration of a free international gold
standard would be possible.
2. Currency policy to be followed prior to such restoration.
3. Functioning of gold standard. AA. Relation between political
authorities and central banks. BB. monetary reserves: I, lowering of cover
ratios; II, gold exchange standard; III, other methods of economizing gold:
IV. distribution of monetary reserves. CO. Co-operation of central banks
In credit policy.
4. Silver.
II—Prices.
1. Disequilibrium between prices and costs.
2. Measures for restoring equilibrium.
III—Resumption of Movement of Capital.
1. Abolition of foreign exchange restrictions.
2. Existing indebtedness: I, foreign short-term debts; II, foreign longterm debts.
3. Movements of capital.
The Commission will hold a plenary session to-morrow.

Under date of Jan. 17, Geneva advices to the same paper
said:
The Preparatory Economic Commission decided to-day to sum up its
views on inter-governmental debts in the report it is drafting in a phrase
suggested by Professor Beneduce of Italy, as follows:
"Lausanne was the armistice, the London conference must be the peace
treaty."
The British, French and American experts have now agreed completely
on the text of the part of the report which affirms the need of returning to
the gold standard and outlines the conditions necessary for it. This
assures its adoption in substance by the Commission. One of the most
independent experts described this part of the report as the best terse
statement on the question of the gold standard that has been made in any
International report.
Though the terms have not been revealed, it is significant that the
Americans and French seem much pleased with them, one delegate predicting that this triangular agreement would remain the session's main
achievement.
Difficulties remain in the economic subcommittee, whose membership
includes more governmental officials than Independent experts.

London "Times' Is Skeptical on World Economic Conference—Sir Robert Horne's Views on Debts.
From the New York "Times" we quote the following
wireless message from London, Jan. 18:
In an editorial to-morrow "The London Times" will say it is important
to bear in mind that the price depression began long before England abandoned the gold standard "because it has lately become the fashion in the
United States and other gold countries to speak of the fall of prices as an
evil brought about by the depreciation of sterling."
Later on the same article indicates skepticism concerning the value of
the results of a world economic conference. After declaring the countries
of the British Empire must not adopt the attitude that they are helpless
to do something on their own account, regardless of the conference, the
editorial continues:
"It Is impossible at this moment to foretell when, if ever, the conference
will meet or what it will discuss when it does meet, still less what conclusions it will reach on the subjects discussed or even whether it will
reach any conclusions at all. It Is only too llkely that a conference in
which so many governments participate with so many divergent views and
interests may only succeed in agreeing upon a series of vague academic
resolutions with which, following the precedent of the economic conference
of 1927, the leading governments will declare themselves in complete accord but will studiously refrain from giving them practical effect
"The little that has been allowed to become known of the work of the
preparatory committee in Geneva is not encouraging. The representatives
of the gold standard countries seem to be bent on making it the first business
of the conference to coax or drive Britain back on the gold standard without
the fulfillment of any of the conditions which British Governments—not
merely the Government of Great Britain but all the governments of the
Empire—have formally declared must precede the re-establishment of
any international monetary standard. That can only lead to a deadlock.
Better Deal on Debts Urged.
Sir Robert Horne, former Chancellor of the Exchequer, in an address
on world trade at Dundee to-night, said that under the existing conditions
the present British Government probably had to deal with more issues
of importance in a week than Gladstone faced in his whole political career.
Because of this, Sir Robert added, there is more need now for continuing
the National Government than there was for creating it in 1931. This
his hearers regarded as generous, because of Sir Robert's own failure to
get a place in this government.
He declared that the most serious of the many causes of the depression
was the fall in prices, and that could not be remedied without the restoration of confidence.
"Confidence, in its turn," he continued. "requires the belief that the
nations of the world are prepared to settle many vexed questions, of which
the chief is war debts.




Jan. 21 1933

"Despite many discouraging factors in the situation, I hope that the
new President (of the United States), fresh from the polls and in the enjoyment of a resounding vote of confidence from his people, may be able
to Induce Congress to accept the view almost universally expressed by
bankers and economists in America that it is in her own interests to make
a great mitigation of these abnormal payments.
"Again,in the region of tariffs there is a growing recognition of the damage
caused to trade by tariffs and subsidies of such a degree as to frustrate
the exchange of goods and services between nations. The advent of
an American President with a lower tariff plank in his platform encourages
the possibility of beneficial change in this respect."

President of Bank of Toronto Opposes Inflation in
Canadian Money—Denies Need for Central Institution.
Advocacy of inflation, reformation of the banking system
and formation of a central bank were deprecated on Jan. 18
by W.G. Gooderham in his address as President at the annual
meeting of the Bank of Toronto. Inflation was not a
remedy for depresssed prices, he said. Canadian Press
accounts from Toronto Jan, 18, continued:
"Theoretically," he added, "a restricted and temporary measure of
currency inflation is tempting, but one dose almost invariably calls for
another, and who is to say where the line should be drawn?"
Inflation would not add a cent to the present commodity prices, he
continued. "On the other hand, the mere threat of a departure from
sound money would seriously damage the credit of this country both
abroad and at home, and cause a flight from the Canadian dollar, the
harmful consequences of which it is not difficult to foresee. The placing
of an embago on the free shipment of gold is quite another thing and is
a sound measure at this time."
A central bank he characterized as unnecessary, declaring there was
no lack of banking credit or currency supply at the present time.
The annual statement of the bank for the year ended on Nov. 30 last,
showed net profits of $1,044,393 allowing the bank to set aside $65,000
for the credit balance after meeting all regular and dividend charges.
This increase the profit and loss credit to $496,301. Deposits were reported down to about $88,000,000 because of calls to most purchases of
recent governmental bond issues and the closing of 12 of the bank's branches
In the year. Securities held by the bank amounted to $37,275,058, an
increase of $1,000,000. Bank loans at 848,250,000 were down nearly
$11.000,000, due to slackness of general business.
The dividend was cut in the last half of the year to 2%% quarterly
from 3%,which made the total disbursement for the year $320,000.

New Brunswick Official Would Link Pound and Canadian Dollar—Says Stable Ratio Would Revitalize
Dominion's Industry.
Establishment of the Canadian dollar at a stable ratio with
the British pound and flotation of a special loan to cover any
loss due to commitments in the United States would revitalize Canadian industry, particularly in the export field,
L. P. D. Tilley, Minister of Lands and Mines in the New
Brunswick Government, said to local business men at a
luncheon aboard the liner Ascania. Canadian Press advices
from Saint John, New Brunswick, Jan. 5, to the New York
"Times" went on to say:
It would increase employment and thus, in the final analysis, lighten
the terrific burden of taxation on the Dominion, Provinces and municipalities.
All the dominions other than Canada had established their currencies
with reference to the pound. Canada must do the same, Mr. Tilley said.
However, Canadian bonds to the extent of $266.000.000 were falling due
with principal and interest payable in New York. If the Canadian dollar
were put on a parity with the pound, it would be worth about 60 cents in
respect to these payments, meaning about $78,000,000 more to be paid.
This situation could be met by adding this increase exchange to capital
account. The people of Canada could then be asked for a patriotic loan
to pay off the difference.
Re-establishment of the Canadian dollar, however, he added, would
mean increased traffic for steamships, increased production in industry
and better prices. It would mean $4.50 a 1.000 feet more for lumber
and $48,000,000 more for Canada's grain crops.

Annual Meeting of Royal Bank of Canada—President
Holt Commends Stability of Canada's Banking
Institutions—Views on Anti-Deflationary Policy
of United States.
The power of resistance which Canada has shown during
the third year of the depression is cause for congratulation,
in the opinion of Sir Herbert Holt, President of The Royal
Bank of Canada, who addressed shareholders of the institution at the annual meeting on Jan. 12 in Montreal.
"With no financial assiatance from other countries other
than a small amount of refinancing which was arranged on a
strictly business basis; with currency depreciation in terms of
gold limited to a very moderate percentage and with none of
the restrictions on foreign exchange or international trade
which have been found inevitable in so many cases, Canada
has lived up to the letter of her contracts and maintained her
credit unimpaired," declared Sir Herbert. "In doing so she
has followed the tradition of the British Empire as a whole.
It is no exaggeration to say that the stability and soundness
of the Empire's banking institutions have played an important part in the creation of this good record."
Referring to the report of the Royal Commission on Transportation, Sir Herbert expressed the opinion that co-opera-

Volume 136

Financial Chronicle

tion between the two railroad systems to effect mutual economies will not prove drastic enough to cut down in any adequate degree the annual deficits of the Government railways
and expressed the conviction that the solution lay in complete
amalgamation. He said he felt that fears of a monopoly
were groundless and that under proper safeguards unification would result in a co-ordinated transportation system
adequate to the needs of the country and conducted with a
minimum of expense.
Dealing with the anti-deflationary policy of the United
States, Sir Herbert said:

411

prospect of further improvement in the coming year is much more hopeful
than it was a year ago. I have full confidence in the character of our people
and of our institutions and without minimizing the importance of the
problems that must be dealt with I look to the future with Increasing
optimism.

German Revaluation Bonds Drawn but not Presented
for Payment.
Holders of so-called German Revaluation bonds with
drawing certificates (auslosungsscheine), issued several years
ago in exchange for old mark bonds can ascertain whether
their bonds have been drawn for redemption by submitting
the full German name of the issue, the letter, group or
At our annual meetings in 1931 and 1932. I pointed out the necessitl
series, number and denomination imprinted on the "auslofor an extremely easy money policy in the United States If deflation were
to be arrested. This policy was only adopted in February last, and had
sungsschein" to the New York & Hanseatic Corp., 37 Wall
little opportunity to become effective until June. If the positive effects
St., New York, N. Y.
are not yet great it can certainly be said that a much worse situation was
averted. It is essential that faith in this policy should not be lost and that
Examination of the official drawing lists received by
States
United
the
into
It should be given time to work. The gold coming
corporation and many inquiries during the last few
this
credit.
on
influence
should be allowed to have its full
reveal that a large number of these bonds held in
weeks
Reviewing the Imperial conference at Ottawa, Sir Herbert
this country were drawn but not presented for redemption.
triumph
a
were
attained
said that the material achievements
Failure to present them means a considerable loss to
for Mr. Bennett and his Government. In conclusion, Sir
as drawn bonds are redeemed at five to 10 times
holders,
Herbert said that Canada was fully capable of meeting any
value (depending upon the issue) plus interest
face
their
present
that
further tests which might be imposed but felt
Jan. 1 1926. To prevent such losses and
since
accrued
indications pointed to the initiation of a recovery in 1933, if particularly the inadvertent sale of drawn bonds at their
a reasonable degree of international common sense and coface value instead of a multiple thereof plus interest, the
operation could be secured.
above-mentioned corporation will be glad to check numbers
Respecting the newsprint industry, Sir Herbert pointed with the drawing lists and report the result. Numbers not
out that in substance the readjustment of capital had taken
yet drawn will be placed on a waiting list and reported
place and high cost producers had been eliminated but that when they will have been drawn. This service entails no
in spite of drastic economies, the industry faces the difficulty
obligation.
of covering its actual operating expenses before provision
Participating debentures (teilschuldverschreibungen) of
said:
Herbert
Sir
for any interest or depreciation.
industrial corporations issued before the inflation
German
is
not
methods
ng
price-cutti
of
In these circumstances a continuation
are also being drawn for redemption. Revaluation bonds
in the interests of the people of this country particularly the workers in
our woods and mills and if the strong efforts that are being made to secure
without "auslosungsschein" are not entitled to participate
co-operation are not successful, provincial governments must take steps
drawings, but have a market in New York. Paper
of
in
collapse
the
prevent
to
and
to conserve Canadian natural resources
this vitally important industry.
mark bonds of German public debtors issued prior to 1924
Sir Herbert made a strong demand for a reduction. in and not exchanged for revaluation bonds are practically
governmental expenditures and pointed to the duplication of worthless and need not be inquired about.
The entire German Government revaluation loan with
government in Canada which leads to excessive cost of
administration. He expressed the hope that the world drawing certificates outstanding on March 31 1932, accordeconomic conference would lead to action designed to put ing to the German budget figures, amounted to 3,940,400,000
an end to the depression through a return of confidence and reichsmarks, and the German Government revaluation loan
the restoration of commodity prices to a level where there without drawing certificates to 703,000,000 reichsmarks.
would be a more normal relationship between the burden Certificates of the latter loan do not bear interest and have
of debt and earning capacity. He emphasized the need for no maturity date. Payment of both principal and interest
the development of publib opinion to demand such results may be commenced, if the German Government should
from the conference, pointing out that "many world con- declare the reparation obligations as definitely terminated.
ferences of the past few years have been failures as each Besides, a consolidated municipal revaluation loan and
nation has come prepared to discuss the mistakes of other many revaluation loans of German States, Provinces, and
countries and to gloss over their own faults. Each statesman cities are outstanding.
has been willing to ask much and concede little."
M. W. Wilson, Vice-President and General Manager of Funds Available for Feb. 1 Payment on Bonds of City
the bank, in referring to the position of the bank, said that
of Leipzig.
an outstanding feature of the statement was that cash and
as fiscal agents for $4,121,000 City of
Co.,
&
Speyer
cash balances totaled $164,630,000, or over 24% of public
Leipzig 7% sinking fund gold bonds, due 1947, announce
liabilities, total liquid assets being equal to over 52.86% of
they have received the regular remittance for payment
that
public liabilities. He mentioned the notable improvement
of the Feb. 1 1933 coupons of these bonds.
in the market for government bonds which took place during
the year and said:
German Cities Would Give Mortgages for Debts.
Canada again proved its capacity to provide funds required by our
public bodies. During the year, the average yield on Dominion GovernA cablegram as follows from Berlin, Jan. 17, is from the
ment long-term bonds declined from 5.20% to about 4.83%. This represents
New York "Journal of Commerce":
a distinct and very satisfactory improvement which in due course should
be carried farther as additional capital seeks investment in gilt-edged
securities.

Pointing out that the banking system of Canada adequately serves the needs of the country he said that a central
bank could perform few services not available under the
present system and would not in any sense do away with
the necessity of requiring adequate security for banking
accommodation nor permit banks to undertake long-term
transactions instead of short-term advances for reproductive
purposes. Recognizing that the question of central banking
is not one to be disposed of summarily, he said:
I should hope that if Parliament is called upon to deal with the matter.
the Government will first have the project examined thoroughly by a
body of experts including several from older countries who have had experience in the practical working of a central bank. I confess to a reluctance
to tinker with our financial machinery in a time like this.

As to the drastic fall in commodity prices during the last
few years, Sir Herbert stated:
The vital necessity for increasing prices is now commonly recognized
but the difficulty of countering deflation increases as the depression continues. We must hope that the forthcoming world economic conference
will point the way to constructive action in this respect.

In closing his remarks, Mr. Wilson said:
met both
Many problems of business readjustment remain to be
been made

toward recovery has
and in Canada but real progress




abroad
and the

An ingenious plan for lifting the heavy burden of floating indebtedness
from German municipalities has been promulgated by Herr Popitz, member
of the Cabinet who administers Prussian finances. The plan when made
effective is expected to strengthen the finances and the credit of the murddpalities.
The plan provides that creditors of the municipalities will receive real
esttate mortgage obligations of longer term bearing interest at the rate of
4 to 43 %. These obligations will be secured by rent tax mortgages.
The mortgages are to be created through a commutation of the present
house rent tax by single lump sum payments, to be met through execution
of a twelve-year liquidation loan that can be given creditors.
Creditors of the communities are fighting this project on account of
the low rate of interest provided and the difficulties that will be encountered under prevailing conditions in realizing on the mortgages, in view of
the tightness in the capital market.

Germany Not to Aid Cities on Debts—Finance Minister
Says Americans, Also in Straits, Will Understand
Plight—Conversion Planned—Municipalities Deficit Said to Total $238,000,000.
Discussing the finances of the German municipalities before the Budgetary Committee of the Reichstag on Jan. 13,
Count Lutz Schwerin von Krosigk, the Finance Minister,
indicated that the Reich does not intend to come to the
assistance of the municipalities when they are unable to
raise funds for the service of their foreign debts. Making

412

Financial Chronicle

this known, A cablegram Jan. 13 from Berlin to the New
York "Times" continued:
"I think we were right in not interfering in the cases of Frankfurt, Cologne
and the Pfalz[Bavarian Palatinate] cities and telling them to seek an accord
with their creditors," he declared.
"Considering that in the United States quite a number of cities are
'broke,' it will be understood there if some of our municipalities are at
this time unable to make sinking fund payments. It would not be understood if in such cases the Reich, which it itself 'hard up,' would intervene
to permit the municipalities amortization payments to foreign creditors."
The deficit of the municipalities,which in March 1932 was about 500.000,000 marks [about $119,000,000], has doubled since then and amounts
to about 1.000.000,000 marks now, the Finance Minister pointed out.
Some of this deficit has been covered through the sale of utilities and real
estate, he said, but it is generally believed that no more cash reserves exist.
Count Schwerin von Krosigk announced that plans for the conversion
of municipal debts had been worked out and would be carried out in the
near future, but he did not reveal the nature of this conversion.
He summed up by stating that the deficit of the municipalities was not
so alarming that a collapse of municipal finances must be envisaged.
The references by Dr. Hans Luther, the President of the Reichsbank,
to the German short-term debts in his address to Breslau last night is
interpreted in banking quarters as indicating that Germany does not intend to undertake any action with respect to her foreign indebtedness
until the international political and economic situation has become sufficiently stabilized to permit her foreign creditors to survey the situation
from the German angle.
If the internal situation has progressed sufficiently to warrant renewed
faith, even to the extent of reconverting some of these credits into fresh
loans, it is viewed as not improbable that a large volume would gradually
be eliminated from any standstill agreement devoted to investments in
German industrial and other enterprises.
The tenor of Dr. Luther's remarks, which he delivered extemporaneously.
indicated that he is confidently visualizing such a prospect, but at the same
time is convinced that it can only become an eventuality when the international situation has been clarified or the world economic conference has
reached such concrete conclusions as to warrant a treatment of Germany's
private indebtedness from a new angle.

City of Dresden, Germany, Reported Unable to Meet
Jan. 2 Payment on Matured Certificates.
The City of Dresden was unable to meet payment of the
redemption certificates which matured Jan. 2, and negotiations are pending with creditors, according to Wyser &
Diner, specialists in German securities. Under date of
Jan. 14 the firm said:
Meetings of the holders of the defaulted bonds were held on Jan. 2 and 3.
The issues in default are the following: City of Dresden Redemption,
Certificates with Auslosungsscheine drawn October 1932, 6% Loan 1926
Reihe I and 6% Treasury Notes of 1930.

In the New York "Times" of Jan. 15 it was stated:
The only dollar issue of the city outstanding is that of the 7s due in 1945,
listed on the New York Stock Exchange. This issue is not In default and
the next interest payment will be due on May 1. Approximately $3,800,000
of the issue of $5,000,000 marketed in 1925 is outstanding. The issue
closed the week at a price of 63.

Germany and Argentina Reported in Trade Conflict—
Berlin Ends "Most-Favored-Nation" Tariff Status,
Says Pact Was Violated.
Under date of Jan. 10 Associated Press advices to the
New York "Evening Post" stated:
Germany and Argentina to-day entered on what Government officials
termed open trade conflict.
Germany struck Argentina from the list of nations enjoying Germany's
"most-favored-nation" tariff clause in reprisal for what was alleged to be a
violation of the Germany-Argentina Trade Treaty of 1857.
An official communique declared that Argentina, after having accorded
Germany a "most-favored-nation" position for seventy years, suddenly
changed tactics Nov. 15 1932 and violated the agreement for the
obvious
purpose of entering a new deal with Great Britain.
The communique asserted Germany showed "extreme
patience" in deferring retaliation as long as she did, offering every possibility
for negotiations.
"There is nobody in Germany who does not regret most deeply
the developments in German-Argentine trade relations," the
communique said.
"The German Government will, also, in the future attentively
examine
every Argentine proposal for eliminating the discrimination against
Germany in order that further aggravation in trade relations may be
avoided."
Germany's "super tariffs" went into effect to-day, generally inaugurating
a tenfold increase in rates and generally applicable to imports from
Argentina.

Germans Will Cut Payment on Debts—Economics
Minister Holds It Impossible to Meet Any of Principal This Year—Foreign Commerce in 1932 Fell
to 1900 Level—Price Slump Caused $254,945,000
Export Surplus.
That even such small repayments of principal on German
foreign private debts as had been made in 1932 would be
impossible this year was asserted by Professor Hermann
Warmbold, the Minister of Economics, at the session of
the budgetary committee of the Reichstag on Jan. 18, according to a Berlin cablegram on that date to the New York
"Times" which also had the following to say:
He declared that the payments in 1932 would be confined to interest
and sinking fund service, and that an attempt to scale down even the
amount of this service would be made.
Figures just released show that in 1932, the third year of the worldwide depression, Germany's foreign trade, both export and import, continued declining to a level corresponding to that at the turn of the century,
but the year brought the Reich an export surplus of 1,073,000,000 marks
[about $254.945,000 at current exchange].




Jan. 21 1933

Germany's foreign trade in December showed remarkable stability.
Exports as well as imports increased slightly as against November, although the seasonal trend was downward and exports especially had formerly dropped off regularly in the last month of the year.
Seen as Good Sign.
This is taken here as another sign of a gradual improvement in
business,
which Is also indicated by the recent growth of industrial production.
The
export surplus in December, however, was 68,000,000 marks, as against
82,000,000 in November.
When 1931 ended with the record export surplus of 2,872,000.000 marks,
there was general agreement that nothing like it would be achieved in
1932, and there were many competent observers who predicted there would
scarcely be any surplus at all. Analysis of the figures for 1932 shows
their
prediction would have come true had it not been for the enormous slump
In the price of raw materials on the world market.
The record surplus of 1931 was achieved chiefly through the drastic
restriction of imports and it was evident at the end of that year that they
had almost reached a minimum. Further restriction in 1932 caused a drop
of 8% in volume, but because of the price slump the value of the year's
imports was more than 30% below the value in 1931 and this had the same
effect as a very substantial restriction.
Enabled Debt Service.
The export surplus in 1932 and Germany's consequent ability to continue the service of her foreign debt therefore owed themselves chiefly to
the slump in the price of raw materials, and this fact to a certain extent
would appear to justify the pessimism of those who predict that any material improvement in world business, starting as it usually does with a
sharp advance in raw material prices, would tend to increase the value of
Germany's imports to such an extent that her export surplus would be
virtually wiped out. Up to 1929 Germany's balance of trade was unfavorable.
Last year brought a 30% decline in the volume of exports, as against
the 8% cut in the volume of imports. German exports consist largely of
finished goods. including valuable machinery, however, and the decrease
in their average value was only 14%.
The value of the goods imported in 1932 amounted to 4,666,000,000
marks, which was 2.061.000,000 less than in 1931. The sum of 2,412.000,000 marks was spent for raw materials and half-finished goods, 1,493,000,000 for foodstuffs and beverages and 727,000,000 for finished goods.

Austria Obtains Renewal of Credit By Bank for International Settlements — Reichsbank May Be
Asked for $20,000,000 Amortization.
United Press advices from Zurich, (Switzerland), Jan. 15
to the New York "Herald Tribune" said:
The Bank for International Settlements (World Bank) renewed the
credit of 90,000,000 schilllngs to Austria at a meeting of the Board to-day.
Gates McGarrah, American president of the bank, presided.
The extension was made following assurances that considerable amortization would be worked out during the next term. Credits to Hungary
and Jugoslavia also were renewed.
Mr. McGarrah indicated to Dr. Hans Luther, head of the Reichsbank,
that the Federal Reserve was disposed to renew the Reichsbank's credit of
$86,000,000 in March, but would insist on amortization of $20,000,000.

Meeting of German Creditors in London—Changes in
Standstill Agreement Discussed With Debtors.
From the New York "Times" we take the following from
London Jan. 16:
The following statement was issued to-day concerning the German
creditors' standstill negotiations:
"A further informal meeting of the representatives of the principal
creditor countries and of the German debtors under the German credit
agreement of 1932 took place in London last week. Questions of principle
were not entered into, but there were proposals for drafting amendments
and additions to the provisions of the agreement now in force for submission to a formal meeting in Berlin Jan. 30 under the chairmanship of
A. H. Wiggin."

Guaranty Trust and Irving Trust Companies Reduce
German Trade Debts.
Stating that stockholders of the Guaranty Trust Company
and the Irving Trust Company of New York, at their respective annual meetings on Jan. 18, were told of reductions
in 1932 of credits previously advanced to German debtors
the New York "Herald Tribune" of Jan. 19 said:
Guaranty Trust Company.
William C. Potter, President of Guaranty Trust, said that the bank's
German loans totaled $34,848.000 at the year end, this figure representing
a reduction of $3,830,000 during the year. "We have received payments
in cash on the German debts of 52,850,000. plus deposits of
$1.048.000,"
he said.
Mr. Potter said, with respect to South America, that there were only
two situations there of major importance to the bank "One is in Chile,"
he said,"and no progress has been made there. We have set up big reserves
against it, and part of that $14,000,000 taken from the profit and loss was
used for that purpose. The other situation is the Argentine Government,
and they have been making very satisfactory progress in cutting down
expenses."
The loan in Chile is either a government or quasi-government loan, said
Mr. Potter. The loan to the Chile Mortgage Bank, he said, will either
fall or rise or stand with the Government. The bank's other South American obligations, he said, were not important.
Regarding the Guaranty Trust dividend, Mr. Potter said:
"I would be assuming an obligation for the whole board of directors
if
I made any predictions about that. But you can judge for yourself.
We
earned our dividend by a narrow margin, and I wouldn't like to
directors would consider it wise to continue it or reduce it." say that the
Guaranty Trust paid $18,000,000 in dividends and added about
$936,000
to undivided profits last year, while it took out of accumulated
profits
about $14,661,000.

From the New York "Journal of Commerce" of Jan. 19
we quote:

Volume 136

Financial Chronicle

Irving Trust Meeting.
After addressing the stockholders of the Irving Trust Co., Lewis E.
Pierson. Chairman, stated that gross operating profits were $8,559,530, with
charge offs from earnings of $2.280,341. With respect to the charge off
of $10,879.871 from gross operating profits he said that about 60% was
applicable to loans and about 40% to securities. The Insull loan was written down to the market value of the collateral.
Regarding foreign commitments, he said in response to questions:
"Our commitment to-day is partly with the German Government and
the German Gold Discount Bank, which owes this institution $7,000.000:
and under the standstill agreement, mostly owed to us by the large German
banks, there is remaining about $18,000,000. This represents a material
reduction.
"There are standstill agreements with Austria and Hungary," Mr.
Pierson said. "Our commitments there are reasonably small, about
$2,500.000 in total."

France and Germany Sign Tariff Agreement—Restores
Freedom to Increase Duties on 15 Days' Notice.
France and Germany have restored to each other freedom
to increase, on 15 days' notice, their import duties on extensive lists of products, according to information issued Dec. 30
by the Department of Commerce on the basis of a cablegram
received from Commercial Attache Fayette W. Allport,
Paris. The "United States Daily" of Jan. 3,from which we
quote, added:
The new agreement between the two countries signed at Berlin Dec. 28,
amends the Franco-German commercial treaty of Aug. 17 1927, which
provided that neither country would increase import duties on lists of products covering substantial portions of their import tariffs, the Department
stated. Unconditional application of minimum tariffs and most-favored
nation treatment are mutually guaranteed, however, to extensive lists of
products stipulated In annexes to the supplementary agreement.
Additional information was furnished as follows'
Products not specified in the annexes to the supplementary agreement are
to benefit by most favored-nation treatment in non-tariff matters only.
Exceptions from most-favored-nation treatment are made for. (1) Fronteer traffic facilities;(2)"advantages accorded by one contracting party to a
third State. designed to establish an equilibrium between its own taxation
and that of the third State, notably to avoid taxation or assure reciprocal
judicial protection and assistance in matters offiscal obligations or penalties"
(3) safeguarding measures, such as surtaxes, to compensate for depreciated
exchange; and (4) "for rights and privileges which may be accorded in the
future by one of the contracting parties to other countries in mutilateral
conventions in which the other party does not participate, if these rights or
privileges are stipulated in conventions of general character concluded under
the auspices of the League of Nations, registered by it and open to the adherence of all nations; if such rights or privileges are stipulated only in such
conventions and if the benefit of these rights and privileges assures to the
other contracting party new advantages; if, finally, the other contracting
party does not accord reciprocity."
The agreement is to become effective 10 days after the exchange of ratifications, or provisionally prior thereto by common consent. An explanatory
protocol is annexed to the agreement.
An exchange agreement was also signed on Dec. 24 1932.

New Trade Treaty Ratified by Austria—One-Year
Compact Approved to Regulate Commerce with
Hungary.
A new commercial treaty between Austria and Hungary
has been ratified, effective Jan. 1 1933, for the duration of
one year, according to a cablegram from Commercial Attache
Gardner Richardson, Vienna. Reporting this, the "United
States Daily" added:
The treaty takes the place of the former treaty of June 30 1931. which had
been denounced by Austria to terminate on June 30 1932, and which was
superseded by a modus vlvendi, effective since Aug. 5 1932.
("Denounce" in international law means the giving of notice of termination.)
The new treaty establishes a compulsory ratio between the trade of the
two countries of three-to-two, in favor of Hungary, i. e., it limits Hungarian imports from Austria to two-thirds of the value of Austrian imports
from Hungary.
Among other provisions the new treaty contains a preferential rate of
import duty of 7.80 gold crowns per 100 kilos on 50.000 tons of Hungarian
wheat, to become effective July 1 1933, provided that all other countries
having a most-favored-nation treaty with Austria agree to that arrangement.
It is reported that the new treaty does not contain any other important
duty changes, and that the system of freight and credit privileges to facilitate purchases from the other country, which was an important part of the
previous treaty has been maintained in the new treaty.

Secretary of State Stimson Reaffirms Non-Recognition
Stand of United States as to Manchuria—Identical
Notes to China and Japan—President-Elect Roosevelt to Support Policy.
The non-recognition policy enunciated by the United
States in the Far Eastern emergency has been restated to
European foreign offices and the League of Nations through
United States diplomatic officers abroad on instruction of
Secretary Stimson, coincident with the meeting of the
Committee of Nineteen of the League to take up the Lytton
report on Manchuria. Indicating this a Washington dispatch, Jan. 16 to the New York "Times" went on to say:
Similar Information has been given orally to foreign envoys when they
have called at the State Department in recent days.
It is understood here that there is no disposition on the part of President-elect Roosevelt to alter the administration's policy with respect
to Manchuria. and a well-informed assumption is that the Secretary of
State assured himself of this before re-enunciating the doctrine that the
United States would not recognize any treaty or situation brought about
by means contrary to the Pact of Paris.




413

It is apparent that repeated rumors abroad that the
Roosevelt administration intended to drop the Hoover-Stimson Far Eastern policy were
causing uncertainty concerning the future attitude of the United States,
thus tending to weaken the position of this country over
the Manchurian
problem. The administration wished to offset this impression.
Policy Declared on Jan. 7 1932.
The policy was stated by Secretary Stimson in his
identical notes to
Japan and China on Jan. 7 1932.
"The American Government," the notes said, "deemds
it to be its duty
to notify both the Imperial Japanese Government and
the Government
of the Chinese Republic that it cannot admit the
legality of any situation
de factor no does it intend to recognize any treaty or agreement
entered
into between those governments, or agents thereof,
which may impair
the treaty rights of the United States or its citizens in
China, including
those which relate to the sovereignty, the independence,
or the territorial
and administrative integrity of the Republic of China,or to
the international
policy relative to China, commonly known as the open-door
policy; and
that it does not intend to recognize any situation, treaty or
agreement
which may be brought about by means contrary to the covenants
and
obligations of the Pact of Paris of Aug. 27 1928, to which treaty both
China and Japan as well as the United States, are parties."
Notification that this policy stood was sent recently to Ambassador
Mellon in London, Ambassador Edge in Paris and chiefs of mission in other
European capitals, as well as to Prentiss Gilbert, consular representative
at Geneva. Those officials were instructed to explain "If asked" that the
United States position remains unchanged.
Need for Reminder Seen.
The State Department explained to-day that this was done because
of reports that the United States was relaxing its attitude. In diplomatic
circles the opinion was general that Secretary Stimson felt the Committee
of Nineteen, as it was about to meet on the thorny Manchurain problem,
sould have a fresh reminder of the American position.
The belief was expressed in some quarters that this action might serve
to nerve the committee to frame a strong recommendation for the League
Assembly with reference to Japan's actions.
There was nothing to indicate that the United States intended to do
more than this at present regarding the Far East.
The instruction to diplomatic missions abroad explains the call of Theodore Marriner, counselor of the Paris Embassy, on the French UnderSecretary of Foreign Affairs, as well as that of Ambassador Mellon on sir
John Simon, the British Foreign Secretary.
The State Department denied emphatically a London press report to-day
that President Hoover had instructed Mr. Mellon to inform the British
Foreign Office that the United States believed the League had wasted
too much time in dealing with the Chino-Japanese situation and that.
since all conciliatory measures had failed, the League should act in accordnace with its covenant.

As to the stand of President-elect'Roosevelt the "Times"
of Jan. 18 reported:
Mr. Roosevelt Makes Statement.
Franklin D. Roosevelt, President-elect, indicated yesterday that there
would be no change in the Far Eastern policy of the United States after
he became President.
This indication that he would continue the Far Eastern policy of the
Hoover administration came when Mr. Roosevelt was questioned by
reporters about newspaper reports from Washington that Secretary of
State Stimson had notified the interested European governments that
the United States would continue its policy of non-recognition in the
Chino-Japanese dispute.
Seated in the study of his city home at 49 East 65th Street, Mr. Roosevelt
borrowed a pencil from a reporter and wrote out a statement in reply to
the question as to whether he had agreed to support the Far Eastern policy
of the present administration in his talk with Secretary Stimson a week
ago. The statement follows:
Any statement relating to any particular foreign situation must, of
course, come from the Secretary of State of the United States
I am, however, wholly willing to make it clear that American foreign
policies must uphold the sanctity of international treaties. That is the
cornerstone on which all relations between nations must rest.
Refuses to Say More.
Mr. Roosevelt refused to amplify this statement, construed as a declaration for continuation of the "open-door" policy for China, either to
disclose details of his conservation with Secretary Stimson or to make It
apply to war debts. The President-elect said that this was all he had to say.
Later in the day, Mr. Roosevelt talked with two members of his party
experienced in foreign affairs, Colonel E. M. House, adviser of President
Wilson, and Frank L. Polk, Under-Secretary of State during the Wilson
administration. Mr. Roosevelt described these visits as "good-byes"
before his departure for the South to-morrow.
Colonel House, after having had luncheon with Mr. Roosevelt, also
declined to give details of their conservation, but said:
"No President in my memory has had better training for the high office
he is to occupy than Franklin Roosevelt. Not only had he had the experience but he had the political flair that is necessary for the successful
conduct of a national administration. I look forward confidently to great
accomplishments under his direction.
"Many of us with whom he advises may help him in a way of which we
are fully unconscious. After we give him our deliberate opinion concerning
a matter, he may feel confident that In doing the opposite he will be almost
certain to be right."

English Cotton Mill Situation as Viewed by New York
Cotton Exchange Service.
The English cotton mill situation was featured last week
by the largest weekly forwardings of American cotton to
Lancashire mill centers in three years, according to the New
York Cotton Exchange Service. They totaled 38,000 bales
compared with 33,000 the previous week and 32,000 in the
corresponding week last year. The Exchange Service on
Jan. 16 said:
These relatively heavy forwardings result partly from increased mill
activity and partly from relatively larger use of American and smaller use
of foreign growths by Lancashire spinners. American cotton constitutes
57.9% of the total forwardings of all cottons to Englinh mll centeres so
far this season, compared with 46.4% in the same perioi last season.
47.5 two seasons ago 55.5 three seasons ago, and 64.2 four seasons ago

414

China Aid Pact on Arms Denied by Secretary Stimson
—Says United States Has No Agreement on Supplying Munitions, Cash—Ambassador Grew in
Statement Denies Tokio Charges—Arms Embargo
Bill Pending in Senate Answer to Situation.
Secretary Stimson reiterated on Jan. 16 that the United
States had reached no understanding with China to supply
money, arms and munitions to aid in its dispute with Japan.
Associated Press advices, Jan. 16 from Washington to the
New York "Evening Post" continued:
The denial of the Secretary, made at his regular press conference, followed closely the lines of the one made under his instructions by Ambassador Grew at Tokio to rumors that had sprung up in Japan.
At the same time, it was pointed out in other quarters that if the arms
embargo resolution pending in the Senate were on the statute books.
the President would be able to take such steps as might quell such rumors.
The resolution, which has been reported out by the Foreign Relations
Committee, provides that when relations are strained between any two
nations the President in co-operation with other nations, may prevent the
shipment of arms to the countries which are threatening war.
Philippines Jove Denied.
Secretary Stimson also said to-day he had no knowledge of any unofficial
approaches made by the United States to Japan for neutralization of the
Philippines. as was reported in the Japanese newspaper. Nichi Nichi.
The paper, according to a message received from Ambassador Grew, said
In
the unofficial American overtures were for creation of a neutral zone,
the
case of Philippine independence, to include the Philippines as well as
Japanese-owned and Japanese-mandated islands in the Pacific.
have said the time
A Japanese Foreign Office spokesman was reported to
probably
Is not ripe for Japan to pass on the question, although it would
approve in principle.

On Jan. 16 Associated Press advices from Tokio to the
same paper stated:
preparations
Charges that the United States was adling China's war
against Japan were aired to-day in the Tokio newspapers.
stateJoseph C. Grew, the American Ambassador, issued the following
ment:
the
to
In
Japan
newspapers
various
Regarding rumors published in
United States and China
effect that understanding was reached between the
EmAmerican
the
China,
to
munitions
and
arms
for supplying money,
agreement of this
bassy state.: emphatically there is no understanding or
is no basis whatever
nature between the United States and China. There
rumor
the United States
a
including
for rumors which have been published,
arranged to loan the Nanking Government 20.000.000 yen (nearly $4,000.000).
Secretary Stimson Sends Cable.
It was learned Ambassador Grew's denial was based on a recent statement cabled by Secretary Stimson.
Simultaneously, the information bureau of the Japanese war office
issued this statement:
A supply of arms to China, especially to Chang Hsiao-liang (commander
In North China), has been made principally by the United States and
Germany. Americans selling the Chinese airplanes and motor cars, mostly
delivered in Shanghai, and the Gormands delivering guns and machine
guns to Tientsin
It was learned the principal basis for the reference to Americans was
that airplanes were sold to the Hangchow aviation school and Shanghai
were aiding
was supplied with mail planes. Allegations that Americans
China emanated mostly from Japanese correspondents In China, who freGenerals
either
for
imminent
were
loans
quently cabled that American
Chiang Kai-shek, the Chinese commander-in-chief, or Chang.
Americans Called Air Teachers.
A Foreign Office spokesman said:
nonWe have reliable information that 40 American aviators, mostly
in
commissioned officers on the active list, were instructing the Chinese
China.
South
amplify further,
He declined to give the source of this information or to
in formation
beyond saying the recently acquired ability of the Chinese to fly
was evidence of foreign instruction.
Hangehow school
Confronted with a statement that none of the Chinese
stuck
Instructors was in active American military serivce, the spokesman
to his story.
within
fully
were
foreigners
The spokesman said Americans and other
therefore the
their rights in selling arms and instructing the Chinese,
a protest to
Japanese newspaper reports that Japan was contemplating
Washington were "ridiculous."
and other
Affairs,
Meanwhile, Hachiro Arita. Vice-Minister of Foreign
diplomats attended
Japanese dignitaries, foreign ambassadors and other
late President Calvin
the American community's memorial services for the
delivered an eulogy
Coolidge in Holy Trinity Church, Ambassador Grew

Greece Pays United States $65,376—Secretary of
Treasury Mills Announces Receipt of 30% of
Amount Due Nov. 10.
Secretary of the Treasury Mills said on Jan. 14 that the
Greek Government had paid to the United States $65,376,
or 30% of the total due Nov. 10 on the additional 4% loan
made to Greece in funding its obligations. Reporting this,
a Washington dispatch Jan. 14 to the New Tork "Times,"
continued:
Government has accorded to

"By the transfer of this sum the Greek
to the bondholders of
the United States treatment equal to that accorded
added in a statement.
the Greek stabilization and refugee loan of 1928"he
of the Americanterms
"Such equal treatment is provided for by the
Greek debt funding agreement of May 10 1929."
United States
Some time ago the Greek Government informed the
that it could not meet in full payments due us to
provide the
inabillry
On several occasions they have emphasized
the sinkin funds of Greek
foreign exchange necessary for the service on
amount of the interest
external loans and to meet more than a limited
ending March 311933.
charges on those loans during the Greek fiscal year

Italy's Budget Larger for 1933-34.
Italy will spend more on its public debt, education, public
works and agriculture next year than during the current




Jan. 21 1933

Financial Chronicle

fiscal year, according to the Commerce Department's
regional division. The Department on Jan. 10 further
reported:
The Italian budget, as proposed for 1933-34(July 1 to June 30), anticipates
expenditures, excluding the extraordinary and capital items, of 20,614,000.000 lire and revenues of 17,713,000,000 lire, giving a deficit of 2.900.000,000 lire. The corresponding figures for the 1932-33 budget were:
Expenditures, 20,060,000,000 lire; receipts, 18,647,000,000 lire, and deficit,
1,413,000,000 lire.
Only the total figure for proposed revenues is available; expenditures by
ministries, as compared with the current estimates, are shown in the
following table:
ITALIAN BUDGET EXPENDITURES.

Finance
Justice
Foreign Affairs
Colonies
Public Instruction
Interior
Public Works
Communications
War
Marine
Aeronautics
Agriculture
Corporations

'

1932-33.

1933-34.

8,976,000,000
500,000,000
205,000.000
458,000.000
1,654,000,000
761,000.000
991.000,000
723,000,000
2,961,000,000
1,539,000,000
754,000,000
472.000,000
66,000,000

9,884,000,000
485.000,000
203,000,000
458.000,000
1,724,000,000
765,000,000
1,149,000,000
661,030,000
2,621,000,000
1,359,000.000
696,000,000
550,000,000
59,000,000

Difference.
+908,000,000
—15,000,000
—2,000,000
+70,000,000
+4,000,000
+158,000,000
—62,000,000
—340,000,000
—180,000,000
—58,000,000
+78,000,000
—7,000,000

20,060,000,000 20.614,000,000 +554,000,000
Totals
(Lira equal to about 5 cents, United States.)
The increase for the Ministry of Finance is occasioned by the larger
service charges on the public debt due to the new loan contracted at the
end of the last fiscal year and because of the inclusion of the deficit which
the State railways are expected to achieve and the increase in appropriations for education is due to the opening of new schools and to the further
assumption of certain expenses Incidental to elementary education which
were formerly covered by the Communes.
Expenditures on public works will be more than last year and allotments
to agriculture have been increased because of the charges arising out of the
land improvement schemes and new improvements undertaken to fight
unemployment. The budgets for colonies and Justice and the interior
have only slight modifications, while war, navy and aeronatics are all cut
ather sharply.

Greek Cabinet Out—Debt Plan Assailed.
An Athens (Greece) wireless message Jan. 13 to the
New York "Times" said:
After a night sitting of the Chamber of Deputies, which lasted until
four o'clock this morning, the coalition Cabinet of Premier Panayoti
Tsaldaris was overthrown by an adverse vote, after accusations that the
Government intended establishing a royalist dictatorship and that its
foreign debt policy was calculated to cause further depreciation of the
drachma,
Leaders of minor Venizelist parties attacked fulfillment of the Varvaressos
agreement, under which, a week ago, $3500000 was handed over to
creditors as a portion of the service of S30.000,000 due.
Proportional payment on the American loan was assailed when the
leader of the Agricultural party read what he asserted was a statement
by President Hoover that poor nations would be permitted to pay according
to their means.
It is believed President Zaimis will either ask a royalist or M. Tealdaris
to form a new Cabinet without George Kondy is, the War Minister, and
Admiral Hadjikyriakos. the Navy Minister, or will entrust formation of
a government to a republican leader who would have the support of followers of Eleutherios Venizelos.

Former Foreign Minister Zaleski Named Head of
Warsaw Commerce Bank of Poland.
United Press advices from Warsaw ,Tan. 14 are taken as
follows from the New York "Herald Tribune":
Former Foreign Minister August Zaleski was appointed President of
Poland's biggest bank to-day, the Warsaw Commerce Bank. A large
part of the bank's capital is owned by the Harriman and Dance Commerciale Italians interests.

Bank of Poland Votes 8% Dividend.
The Bank of Poland voted on Jan. 12 to pay an 8%
dividend for 1932, said Associated Press advices Jan. 12,
which added that the 1931 dividend was 12%.
Rate of Exchange on New Zealand Pound Raised—
Government Puts 125 on Par With 100 Pounds
Sterling to Hold Up Export Prices—Finance Minister Quits.
Effective Jan. 19 the Government increased the exchange
rate of the New Zealand pound, fixing 125 Now Zealand
pounds on a par with 100 pounds sterling. Associated Press
advices from Wellington, New Zealand, reporting this on
Jan. 19 said:
The exchange rate In London hitherto has been about 111 to 113 New
Zealand pounds to 100 pounds sterling.

From the New York "Times" we quote the following from
Wellington Jan. 19:
In order to protect primary producers in New Zealand from a further
fall in export prices. the Government has raised the exchange rate on
London to a 25% discount on sterling. placing 125 New Zealand pounds
on a par with 100 pounds sterling. The rate until this action was taken
was 9%.
Prime Minister G. W. Forbes's announcement of this decision to-day
precipitated a Cabinet crisis, for W. Downie Stewart, Finance Minister
Delegate to the Ottawa conference, resigned as soon as it had been
andde.

Volume 136

Financial Chronicle

Mr. Stewart, the first Minister to resign in New Zealand in a generation,
said he had repeatedly subordinated his views to the Government on
financial matters, but could not swallow this latest move.

As to the opposition to the move Associated Press accounts
from Wellington Jan. 20 had the following to say:
The Government's further inflation of New Zealand's currency to-day
by the raising of the exchange rate was opposed vigorously by the banks.
Immediately before the new exchange rate was announced there was a
rush on the part of speculators to obtain sterling from banks.
To compensate empire countries to some extent for resulting disadvantages to them in competition, it was said, the Government may lower the
scale of import duties on empire products.
Prime Minister Forbes, in a statement issued shortly after he had announced the raising of the exchange rate. declared:
The Government reviewed exhaustively the economic and financial
position of the Dominion, and particularly the serious predicament in
which the farmers were suffering from further disastrous falls in price
levels.
"The position was becoming increasingly difficult and consequently we
decided it would be in the best national interests to raise the exchange
on London to £125 at the earliest possible moment.
"The Government further arranged to have the banks co-operate with it
at the same time, but undertook to indemnify the banks against possible
losses incurred in the sale of exchange purchased at that figure."

South Africa Reduces Exchange Rate.
following
from Johannesburg (South Africa), Jan. 19
The
Is from the New York "Times":
It was announced to-day that the exchange rate of the South African
pound had been reduced to a parity with sterling.
It is realized that parity is an artificial state bearing no relation to the
Union's favorable trade balance with Britain and it is believed that the
Government will now definitely llnk the currency with sterling.

In its issue of Jan. 17 the "Wall Street Journal" said:
Value of the South African pound, in terms of sterling, has dropped £2
per £100 sterling in London. Banks are quoting the selling rate at ESA97
per £100 sterling compared with £SA95 per £100 previously and the buying
rate at £SA98 per £100 sterling against ESA96 previously. On the basis
of current sterling quotations, this is equivalent to $3.45( for the selling
rate and $3.413,1 for the buying.

All Securities Listed on New York Stock Exchange to
Be Delivered Through Central Delivery Department.
The Stock Clearing Corporation announced on Jan. 19
that beginning Monday, Jan. 23, deliveries uf all securities
listed on the New York Stock Exchange will be made through
the Central Delivery Department, instead of directly between members of the Exchange as heretofore. This, says
the announcement will complete the program begun in April
1929, when the Stock Clearing Corporation inaugurated its
plan for the central delivery of securities with a limited
number of active stock issues. The announcement continued:
The final step in this program, to be taken on Monday. will bring the
"non-cleared" bonds into the list of securities delivered through the Central
Delivery Department. Previously all stock issues but only the active bonds,
constituting the "cleared" list, were so settled.
In addition to the members of the Exchange a limited number of nonmember banking institutions, including most of the larger banks in the
financial district, use the facilities of the Central Delivery Department for
making deliveries of securities between themselves and members of the
Stock Exchange.
The first step toward the central delivery of securities was taken In
Jan. 1928, when the plan was tried on an experimental basis. On April 18
1929, the first delivery of cleared stocks was made between members of
the Exchange, but included only some 50 stocks beginning with "A." This
list of stocks was broadened gradually over the period of the next several
wedge as the members of the Stock Clearing Corporation became familiar
with the operations, until, on May 29 1929, the entire list of cleared stocks
was included. The central delivery of cleared bonds was inaugurated on
Nov. 22 1929; non-cleared stocks were added in Aprll 1930, and government bonds in May 1932.
Beginning Mar, 25 1931, a system of clearing the deliveries of "falls to
deliver" was started. These items had previously been settled directly
between members.
During the past year the Central Delivery Department has handled
more than 6,000,000 certificates of stocks and bonds. It has relieved the
members of the burden of delivering securities to many different offices
scattered in all parts of the financial district and has also greatly lessened the
risk of loss and delay, which exists when securities are carried through
the streets to different places.

Securities Market of New York Produce Exchange
Requires Auditing by Certified Public Accountants
of Annual Reports of Listed Companies.
The Securities Market on the New York Produce Exchange
has further extended its requirements as to independent
certification of financial statement by the adoptiod of _the
following covenant to be entered into by applicants:
That all future annual reports sent to stockholders shall be audited by
public accountants qualified under the laws of some State or country and
shall be accompanied by a certificate of such public accountants showing
the scope of such audit and qualifications, If any, made by them in respect
thereto.

The above is in line with the action taken by the New
York Stock Exchange to which reference was made in our
issue of Jan. 14, page 257.
Irving Ben Cooper Charges "Lid" Was Put on Senate
Inquiry into Stock Exchange Trading.
Irving Ben Cooper, who resigned on Jan. 17 as counsel
for the stock market investigation undertaken by the Senate




415

Committee on Banking and Currency, denied in New York
on Jan. 18 that he had resigned for the reason given earlier
in the day in Washington by the Committee Chairman,
Senator.Peter G. Norbeck of North Dakota. The resignation of Mr. Cooper is referred to in another item in this issue
of our paper. Regarding Mr. Cooper's allegations on Jan.
18 the New York "Times" said:
After Senator Norbeck had explained the resignation in Washington
by saying Mr. Cooper had "demanded unlimited power," Mr. Cooper
replied in New York that all the power he wanted had been discussed with
Senator Norbeck and had been granted before the Committee named him
as counsel by resolution on Jan. 10, and that six days after he started work
the power was taken back.
Mr. Cooper said Senator Norbeck summoned him to Washington on
Monday (Jan. 16] and told him "the picture has changed." From official
sources in Washington it was learned yesterday that Mr. Cooper in the
meantime had asked for 500 blank subpoenas.
Says He Balked at Supervision.
Although Senator Norbeck and his fellow-members on the Banking
and Currency Committee are reported from Washington as criticizing
Mr. Cooper for ambition and assumption of responsibility in engaging seven
assistants and establishing an office at 70 Pine Street. Mr. Cooper said he
not only had discussed doing this before he was appointed, but even had
submitted the names of the seven assistants, consisting of a hand-picked
third of the staff that was associated with him in the Seabury investigation
into the city affairs of New York and the magistrates' courts.
"When I learned on Monday from Senator Norbeck's lips that 'the
picture has changed'," Mr. Cooper said, "I learned also that I could not
have the free hand I had been promised; that. while I could go ahead with
the staff I had selected. I could only do so provided John Marrinan was
physically stationed in my office for the sole purpose of passing upon each
subpoena before it was issued, passing upon every item of expense, passing
upon who should be added to my staff and directing what lines of inquiry
should be followed and what not."
When Mr. Cooper was asked if Senator Norbeck had told him in what
respect "the picture had changed," he replied, "I do not care to discuss
that."
He said he considered it obvious that Mr. Marrinan, who had served
the Committee during the Kreuger-Toll inquiry, had been appointed
to "sit on the lid." but denied that he and his staff had advanced far enough
In their preliminary work to have aroused individual rather than general
opposition in the field to be investigated.
Specific Cases Not Discussed.
Senator Norbeck was reported last night as agreeing with him In this.
declaring that at no time had he or the members of the Senate Banking
and Currency Committee discussed with Mr. Cooper specific cases or individuals to be investigated.
Mr. Cooper said he had expected to have some difficulty now and then
with the Committee if he had proceeded with the investigation, in view of
the experience of his predecessor, William A. Gray, who was criticized by
conservative members for undermining public confidence in market and
corporation leaders and interfering with recovery by exploring personal
operations instead of collecting observations on the general topics of short
selling manipulation of the market and the need of statutory regulation of
the Stock Exchange.
Mr. Cooper said he would rest on the declaration in his letter of resignation that he did not care to be a party to anything but a "genuine" investigation. He has released the offices he had engaged at 70 Pine Street
and the seven legal assistants. He said he expected to concern himself
henceforth with his private practice.

Senator Norbeck, Chairman of Senate Committee Investigating Stock Exchange Operations, Disputes
Irving Ben Cooper—Senator Says "Relieved"
Counsel Sought Unjustified Power.
Senator Norbeck said on Jan. 18 that "at no time had he
or members of the Senate Banking and Currency Committee
discussed with Irving Ben Cooper specific cases or individuals
to be investigated" in the stock market inquiry being conducted by the Committee. A Washington dispatch Jan. 18
to the New York "Times" further reported:
Senator Norbeck was replying to charges by Mr. Cooper that after
he had been retained as counsel for the Committee last Wednesday he found
it necessary to resign because the Committee hampered his work. Senator
Norbeck repeated to-day his assertion, made late last night, that the principal difference with Mr. Cooper had occurred when the Committee "declined
to delegate to him the powers of the Senate."
Incidentally, it was reported authoritatively that Mr. Cooper. in addition
to arranging for seven legal assistants, had asked the Committee to give
him 500 blank subpoenas, whereas the Committee thus far has issued only
27 subpoenas in its series of investigations. Mr. Cooper's first assignment
was to have been pursuit of further material in the Committee's investigation of the affairs of Kreuger & Toll.
Discussing Mr. Cooper's letter, Senator Norbeck said: "Mr. Cooper
seems to have created a mystery where in fact there is no mystery." He
named the "agent" referred to by Mr. Cooper as having been placed in his
office to supervise his work as John Marrinan.
"Mr. Marrinan," Senator Norbeck said. "has been on the staff of the
Senate Banking and Currency Committee since the stock market inquiry
began. Ile conducted the recent investigation into Kreuger & Toll. Over
a period of 18 years Mr. Marrinan has been a Washington newspaper man
and he has held responsible positions in the Federal service."
Senator Norbeck said "It was suggested to Mr. Cooper that Mr. Marrinan serve as a contact man between him and the Committee, and added
that "at no time was there any discussion with Mr. Cooper regarding specific cases or individuals to be investigated."
While discussing the situation, Senator Norbeck changed his comments
from the tone of speaking of Mr. Cooper's "resignation" to remarking that
the attorney had been "relieved."
"He has been relieved," Senator Norbeck went on, "merely because I.
as Chairman of the Committee, declined to delegate to him powers of the
Senate which I, as a Senator, would think it dangerous and unsound to
delegate to any one.
"The Committee cannot surrender its powers or give to any one authority
to hamper the investigation. By granting Mr. Cooper's demands for unlimited authority, the Committee would have lost control of the investigation."

416

Financial Chronicle

New York Curb Exchange Fines 40 For Gratuities—
Alleged to Have Hired Page Boys for Special Service.
From the New York "Times" of Jan. 13 we quote:
Forty or more member firms of the New York Curb Exchange have
been fined for violating a rule which prohibits the granting of gratuities
to employees of the Exchange without permission.
While officials of the Exchange would not comment on the disciplinary
action, it was understood that the penalties were imposed because of the
action of representatives of some firms in employing page boys for special
service in their regular hours of employment on the floor. In some instances the offenses are said to have extended over several years without the
knowledge of the partners of the firms involved. The Curb declined to
disclose the names of the firms punished.
The services for which page boys are reported to have been employed
by certain firms were in no sense questionable, it is understood, but the
Exchange took action because permission had not beeq obtained and because
the employees were being paid to perform special duties in their regular
hours of work.

Jan. 21 1933

closed is approximately 25% less than that of last year. This percentage
of reduction is about the same as that of the New York Stock Exchange,
but it is with one exception, substantially less than the decline In share
dealings of other security exchanges in the United States for the same
period. The fact that the San Francisco Stock Exchange has maintained
its relative position among the security exchanges of the country during this
period of deflation of credit and securities, is highly significant.
That the Pacific Coast States have felt the full force of this period of
business recession is shown in the index of general business activity for the
Twelfth Federal Reserve District. Nevertheless, the capital resources
which were accumulated during the five-year period prior to 1030 when
business activity on the Pacific Slope exceeded that of the nation as a whole,
and the advantage of per capita income enjoyed by California and other
Western States during this same period have partially tended to mitigate
the full effect of the unparalleled conditions of the last three years.
Although the San Francisco Stock Exchange has experienced a year of
stress and turbulent business conditions, its membership again posts a
record unblemished by suspension or insolvency. It is worthy of your
attention that in the 50 years of its existence, there have been only eight
suspensions for insolvency on this Exchange.

In commenting on the future prospects for the year,
Convicted Broker Tests Martin Act—S.C.Picot of Stock
Exchange Firm of Fenner, Beane & Ungerleider President Ehrman said:
Recovery is bound to follow if purchasing power can be restored by
Alleged Guilty of Disregarding Inquiry Subpoena, stimulating
employment, and if steps are taken to check wasteful governSeeks Higher Court Ruling—Disputes State's mental expenditures and thus reduce over-taxation. The solution
of these
Power—State Attorney-General Holds Law Gives problems will restore confidence and will pave the way for this country to
emerge from the valley of depression. The psychology offear which has been
Right to Call Brokers.
an underlying factor in many of our business troubles during this period
A test case to determine the right of the Attorney-General of world-wide economic distrubance must be replaced by a spirit of conThis can be accomplished by hard work, faith, patience and perto summon a stock broker on the complaint of a customer fidence.
sonal sacrifice on the part of each individual.
for examination under the Martin Act was filed in the
Supreme Court on Jan.9in behalf of Sully C.Picot, Manag- William English, Jr., Elected President, New York
ing Partner of the Stock Exchange firm of Fenner, Beane &
Coffee and Sugar Exchange.
Ungerleider, found guilty in Special Sessions on Jan. 5 of
William H. English, Jr., was elected the twenty-fourth
failing to answer a subpoena of the Attorney-General on President of the New York Coffee & Sugar Exchange
at
Aug. 17 -without reasonable cause. The New York "Times" the annual election on Jan.19. He is said to be the
youngest
further
this,
said:
reporting
10,
of Jan.
President of any of the city's commodity or security markets.
Under the Martin Act failure to respond to a subpoena is a misdemeanor
He succeeds H. H. Pike, Jr., who held the offiee for two
punishable'by a fine of not more than $5.000. The Special Sessions judges
years. Mr. English, who graduated from Princeton in
set $100 bail for the broker pending his sentence on Thursday. B. F.
Norris, his counsel, applied yesterday for a certificate of reasonable doubt
1921,
is 33 years of age. He is a partner in the firm of
under which he would be released on bail pending a ruling in the case by the
C. D. Halsey & Co., prominent Wall Street firm. His
higher courts, and asked for a ruling to-day by Justice Lydon.
In his petition Mr. Norris said that on the return date of the subpoena
first business connection was with Arbuckle Brothers in
he appeared in behalf of his client and asked that his appearance be noted.
Brooklyn. He eventually became an executive with
He said he had advised Mr. Picot to refuse to appear.
Arbuckle, and later became a partner in the firm of W. R.
There had been some trouble over the account of Eagle May Meyer, a
customer of the firm, Mr. Norris explained, and "after her various attempts
Craig & Co., commodity merchants. That firm was disto harass the firm she had resorted to the Attorney-General." The papers
solved last year with the death of Mr. Craig.
showed that before going to the Attorney-General she had made a complaint
Mr. English then became a partner in the Wall Street
to the Business Conduct Committee of the Stock Exchange.
The testimony at the trial in Special Sessions showed that Mr. Norris
firm of C. D. Halsey & Co., which was formed in 1894
contended that the brokerage firm did not buy, sell or promote stocks
under the original name of Toler & Halsey by the late
but that its sole business was earning commissions on transactions as agent
Charles D. Halsey and the late Harry P. Toler, In 1901
for customers.
Miss Marjorie Sederstrom, Deputy Attorney-General, said that the
the
firm became C. D. Halsey & Co. The firm holds
Attorney-General had a right to summon brokers for examination, and that
memberships on the New York Stock Exchange, New York
if the court held otherwise, "we might as well go out of business." She
argued that the Attorney-General "can subpoena with or withuot a comCurb Exchange, Pittsburgh Stock Exchange, New York
plaint if we deem it in the interest of the public."
Coffee & Sugar Exchange and New York Cocoa Exchange,
The papers showed that the dispute involved transactions in BrooklynMr. English is the son of William H. English, Sr., Chairman
Manhattan Transit and Chesapeake & Ohio stock last July.
of the Board of Paramount, a director of the Irving Trust
A. L. Ehrman Re-Elected President of San Francisco Co. and the Brooklyn Trust Co. Chandler A. Mackey was
elected Vice-President of the New York Coffee & Sugar
Stock Exchange—President's Annual Report.
Albert L. Ehrman, who four times previously has held the Exchange to succeed Mr. English, who served as Viceoffice of chief executive, was re-elected to the Presidency of President last year. Earl B. Wilson was re-elected Treasthe San Francisco Stock Exchange at its annual meeting on urer. The following were elected new members to the
Jan. 11. Reginald C. Jenkins was again elected Vice-Pres- Board of Managers: F. G. Henderson, F. R. Home,
ident and members of the Governing Board elected were W. W. Pinney and W. J. Wessels. In addition to its new
Austin A. Brown and Ronald E. Koehler. These, with members and the officers, the board for 1933 will include
Sherman Hoelscher, Robert H. Williard and Earl T. Parrish the Messrs. Harold L. Bache, William G. Daub,RJieornodmae
,
Lewine, E. L. Lueder, Charles C. Riggs, M. E.
will constitute the Governing Board for 1933.
Albert L. Ehrman has been a member of the Exchange for Louis Seitz and A. M. Walbridge.
22 years, having been elected to membership on March 27
1911. He served as President for two terms during the 1920- Peter B. Carey Re-Elected President of Chicago Board
of Trade.
1922 period of depression and he has held office again during
Peter B. Carey was re-elected President of the Chicago
1931-1932. Not being actively engaged in business he is
Board of Trade at the annual election on Jan. 9. Form the
devoting his entire time to the affairs of the Exchange.
Reginald C. Jenkins who continues as Vice-President is Chicago "Journal of Commerce" of Jan. 10 we quote:
There was no contest. Lowell S. Holt was chosen First Vice-President
resident partner of the firm of Logan & Bryan,and has served
Robert B. Boylan Second Vice-President, with no opposition.
as a member of the Governing Board in 1930 and 1931 and and
Election of directors was sharply contested, there being 10 candidate
,
has been active on many Exchange Committees. Of the for the five positions open. Two members of the regular ticket were
candidates
Siebel
were
Successful
C.
defeated.
Harris, with 532
members chosen for the Governing Board, Austin A. Brown
votes;
Richard F. Uhlmann, with 515 votes; Charles B. Scott.
votes; harry s.
is a partner of and Exchange representative of Dean Witter & Klein, 429, and James A. Prindiville, 429 votes. The489
two latter were on
Co., while Ronald E. Koehler is similarly affiliated with the opposition ticket.
results for directors were: Michael L. Vehon. 393 votes,
Robert
Wardell Doyle & Co. Sherman Hoelscher, floor member for W.Other
Buckley, 271; Francis B. Fox, 270; Parker M. Paine, 239, and
Frank
Walston & Co., Robert H. Williard of Wm. Cavalier & Co. A. Miller, 153 votes.
Selections for Nominating Committee were: John IT. Scoville,
and Earl T.Parrish are incumbent members of the Governing
Edward
R. Bacon, Charles P. Randall, Edward S. Westbrook and
George A.
Board.
Kochi, latter opposing the regular ticket.
Stability of the financial institutions of San Francisco and
For Committee of Appeals: Alonzo B. Lord, Brackett B. Dennison,
Alfred A. Meyer, Frank J. Bittel and John IT. Wheeler, and committee of
their importance in the economic structure of the country Arbitration,
Henry W. Batterman, Frank Haines, Philip A.
Copenhaver.
were stressed by President Albert L. Ehrman in his report William C. Miss and Alex Moore, were chosen without opposition.
cast
Election
were
ballots
of
739.
Mr.
Total
meeting
Holt
annual
of
the
San
the
and
Francisco Stock Exchange
at
Mr. Boylan as
Vice-Presidents gives the board of trade the first two new occupants of
on Jan. 11. He said:
these offices since 1918. Their joint position on the ballot was made posDuring the past year of disastrous economic deflation, all of the major
sible by the recent resignation of Fred Uhlmann,then Second Vice-President,

security exchanges of the country have experienced a material falling off
In volume of business. The share volume of our Exchange for the year just




who relinquished some of his activities outside the business of Uhlmann
Grain Co. of which he is the head.

Volume 136

Financial Chronicle

Bankruptcy Filed by Henry Munroe—Petition of
Member of Pioneer Banking Family Does Not List
Liabilities or Assets.
From the New York "Evening Post" of Jan. 18 we take
the following:
Henry Munroe, member of an old family of international bankers,
filed
a voluntary petition of bankruptcy in the United States District Court
to-day.
The petition, filed by the firm of Satterlee & Spence, carried no schedules
of assets and liabilities, but set forth that the petitioner was a member of
a partnership consisting of himself, Stephen Galatti, Jules Emy and Louis
de Kermaingant which traded under the name of John Munroe and Co. in
Paris, Cannes, Pau and New York.
The petition also stated that in November 1930 equity proceedings were
brought against the firm by Charles W. Greenough, the Irving Trust Co.
being appointed receiver in equity; that later a liquidator was named in
the French courts; that liquidation is almost completed both here and in
France and that such assets as remain in the hands of the receiver and
liquidator are insufficient to meet the indebtedness of the firm. The
petitioner stated he himself was unable to meet his obligations in full.
John Munroe & Co. maintained offices at 100 Broadway. A private
banking firm founded in 1837,its main office was in Paris where it numbered
among its clients many well-known American families. It was the oldest
American bank in Paris, having done business there since 1851.

Joseph Wayne, Jr., Re-elected President, Philadelphia
Clearing House Association.
Joseph Wayne, Jr., President of the Philadelphia Nationa
Bank, was re-elected President of the Philadelphia Clearing
House Association on Jan. 9, according to the Philadelphia "Public Ledger" of Jan. 10, which further reported:
William P. Gest, Chairman of the Board of the Fidelity-Philadelphi
a
Trust Co., was re-elected Vice-President of the Association, and Clarence
H. Batten again was chosen as Secretary.
The following were elected members of the Clearing House Committee
:
Mr. Gest; William J. Montgomery, Vice-President of the First National
Bank; J. Willison Smith, President of the Real Estate-Land Title
& Trust
Co.; Howard A. Loeb, Chairman of the Tradesmens' National Bank
&
Trust Co.; Albert A. Jackson, President of the Girard Trust
Co.; Archier
D. Swift, President of the Central-Penn National Bank, and C. S. Newhall,
Executive Vice-President of the Pennsylvania Co. for Insurances on
Lives
and Granting Annuities.
Members of the Committee of Arbitration were elected as follows:
Edward A. Schmidt, President of the Northwestern National Bank
&
Trust Co.; Ira W. Barnes, President of the Ninth Bank & Trust
Co.;
William A. Dyer, President of the Commercial National Bank; Parker
S.
Williams, President of the Provident Trust Co.; Walter K. Hardt, President
of the Integrity Trust Co.; Paul Thompson, President of the Corn Exchange
National Bank & Trust Co., and F. Morse Archer, President
of the First
National Bank & Trust Co. of Camden.

Reduction in Interest Rates on Deposits by New York
Clearing House Association.
New lowered interest rates on deposits paid by banking
institutions in the New York Clearing House Association
were announced on Jan. 19 by the Association's Clearing
House Committee,—the new rates to become effective
Jan. 25. Under the changed schedule the rate on demand
deposits of banks, trust companies and private bankers,
will be lowered from M% to X%; the rate on demand
deposits of mutual savings banks will be decreased from
1%
to %,and to all others from 5% to X% the rate on time
deposits is reduced from 1% to M %. The notice issued
by
the Clearing House calls attention to the fact that
by the
ruling issued this week "anything under 90 days
certificate
of deposit or 90 days notice is a demand deposit in
fixing
interest rates." The Clearing House announcement follows:
NEW YORK CLEARING HOUSE,
77-83 Cedar Street.
New York, January 19th, 1933.
Dear Sir:—Acting under the provisions
of SECTION 2, ARTICLE XI
of the Clearing House Constitution, relating
to interest on deposits to be
paid by Clearing House institutions, we beg
to advise you that the following
maximum rates have been fixed, effective
Wednesday, January 25th, 1933:
YOUR ATTENTION IS CALLED TO THE
FACT THAT BY THIS
RULING ANYTHING UNDER 90 DAYS
CERTIFICATE OF
DEPOSIT OR 90 DAYS NOTICE IS A
DEMAND DEPOSIT IN
FIXING INTEREST RATES.
On Certificates of Deposit Payable
within Ninety Days of Issue or Demand, and on Credit Balances Payable
on Demand or within Ninety Days of
Demand:
To Banks, Trust To Mutual
Companies and
Savings
Private Bankers
Banks

To
Others

On Certificates of Deposit or
Time Deposits, which by Their
Terms are Payable on or After
Ninety Days, but Not
than Six Months from the More
Date
of Issue or Demand:

, 35%
Certificates of Deposit or Time Deposits payable
more than six months
from date of issue or demand are not subject to regulation
terest payable, but are subject to other regulations, including as to rate of inruling No. 15.
By order,
GEORGE W. DAVISON,
Chairman,
Clearing House Committee
CLARENCE E. BACON,
Manager

The last previous change was made in May 1932, and was
referred to in our issue of May 14, page 3567. From the
New York "Sun" of last night (Jan. 20) we quote the following regarding this week's action:




417

The Clearing House Committee of the New York Clearing
House, which
controls interest rates and other policies of local clearing
banks, voted late
yesterday another sweeping change in interest schedules which
cuts in half
the rates now paid. As had been forecast some weeks ago
in The "Sun",
the committee refused to heed the demands of those who
desired interest
eliminated altogether, but compromised generously by
cutting rates to
insignificant fractions of 1%.
The committee met at the Clearing House yesterday
afternoon under
George W. Davison, Chairman of the Central Hanover Bank
& Trust Company, Chairman of the Committee, and deliberated until 6
o'clock. In accordance with custom announcement was withheld until
to-day pending delivery by messenger of the new rate scheduled to all
banks which are members of the Clearing House. . . .
Reserves which banks are required to maintain in the
Federal Reserve
Bank, amounting to 13% against demand deposits and 3%
for time deposits,
must continue to be deducted in calculating interest even
at the new rates,
so that from the schedule there must be deducted 1-32 of 1%
from the rate
to be paid on demand deposits and about 1-64 of 1% from
the rate paid on
time deposits.
The Clearing House committee instituted a new departure
by changing
the definition of time deposits. Under Clearing House rules a
time deposit.
after January 25, will be a deposit which remains in the
bank for ninety
days or longer. Now every deposit remaining on a bank's
books for thirty
days or longer is a time deposit. In other words, all deposits
up to ninety
days will be considered demand deposits.
The action announced to-day by the Clearing House
Committee is a further step toward bringing about a general lowering of fixed
charges
dens upon income at a time when changed conditions have made and burincome out
of proportion to fixed charges incurred in more prosperous times.
For more
than two years with only one temporary interruption in the
trend—when
Great Britain went off the gold standard—the Federal Reserve
banks
been forcing down the general level of interest rates, making money have
plentiful and cheap.
Keeping pace with this central banking policy, the clearing banks,
instructions of the Clearing House Committee, have been making upon
many
downward revisions in rates of interest paid on deposits. The
advantages
of lowered interest are now being passed along to mortgagors by large institutional holders of mortgages, which in turn have reduced the rate of
interest
paid on savings deposits and in some instances the rate paid on
guaranteed
mortgages and certificates.
Others May Follow.
Early announcement is expected of action by an independe
nt committee
of bankers to reduce similarly rates of interest paid by local
banks on foreign
central bank and government deposits here, such deposits
being outside
clearing house jurisdiction. This is an informal group and
meets only when
there is a demand on the part of large banks for an adjustmen
t of such rates.
The Committee has not held a meeting for several months.
Its chairman is
Gordon S. Rentschler, president of the National City Bank.
The Clearing House Committee's new definition of
what constitutes a
time deposit carries the interesting implication that
the Federal Reserve
Board may have to take notice of the subject and revise
its own definition.
which is thirty days, as compared with the Clearing
House new rule that
funds in a bank are not time deposits unless they have
been there ninety
days or longer. In the event that the Federal
Reserve Board changes its
definition, millions of dollars now classed as time deposits
would suddenly
become demand deposits, requiring larger reserves.
The inception of the program of the Clearing House
Committee, which
has driven down deposit rates of interest to levels not seen in
this generation.
dates back to March 1930. At the beginning of that year
demand deposits
of banks, bankers and trust companies received 2 % interest,
deposits of
mutual savings banks received 3% and others received
2%. Time
deposits drew 3%. Three changes downward were made
in that year.
There were three more changes in 1931. but only one
in 1932, on May 10.
Since that date present rates have been maintained.

German Standstill Change—Discussions By Subcommittee at New York Federal Reserve Bank—Bankers Leave To-day for Berlin.
The following is from the New York "Sun" of last night
(Jan. 20):
The subcommittee of bankers on German credits, which has been
meeting almost daily for several months at the Federal Reserve Bank
working
on plans for the new standstill plan, to take effect after the present
one expires next Feb. 28, met again this afternoon at the same place and
on the
same subject. Those attending hoped it would be the last
session for a
few days.
The meeting this afternoon considered various legal phases which
have
been cabled here by Allen Wardwell, New York attorney, who has
been
acting abroad as legal adviser to the American bankers on German
credit
matters.
Members of the American committee of bankers on German credits;
Albert H. Wiggin, member of the Executive Committee of
the Chase
National Bank, and F. Abbot Goodhue, President of the Bank
of the
Manhattan Co., will sail to-morrow on the Bremen to participate in
the
meeting Of international bankers with German debtors at Berlin, at which
a new standstill plan will be adopted. Mr. Wiggin and Mr.
Goodhue are
being accompanied by Joseph E. Rovensky, Vice-President of
the Chase
National Bank.
They will be met at Southampton by Mr. Wardwell, who will accompan
y
them to Berlin, where they are due to arrive Jan. 28. The date of
the first
meeting on standstill matters there will be Jan. 30.

Volume of Outstanding Bankers' Acceptances Dec. 31,
3709,729,588—Reduction of $9,821,736 in Month.
Tho total volume of bankers' dollar acceptances outstanding Dec. 31 1932 amounted to $709,729,568, a reduction of
$9,821,735 from the volume outstanding at the end of
November. Robert H.Bean,Executive Secretary American
Acceptance Council, New York, N. Y., in reporting this
Jan. 20, added:
The report of the American Acceptanc
e Council on its survey as of the
end of the year shows that the volume
of acceptances on what is ordinarily
the peak date for the year stood
at $264,329,782 below the figures at the
end of 1931. The reduction of
$9,800,000 was not confined to any Particular type of acceptances, but was
largely due to the general let-down
In demand for acceptance credits.
111111
The most substantial change was in
the volume of bills drawn to finance
the storage of goods in domestic warehouse
s which went off $5,265,608.
At $215.000,000—the amount outstandin
g at the end of December—this

Financial Chronicle

418

same date
type of acceptance business was off only 536,000,000 from the
in comIn 1931, a reduction almost wholly accounted for by the drop
modity prices.
The next largest reduction was in the class of bills based on goods stored
in or shipped between foreign countries which declined $4.738,444.
shipment
Import acceptance credits declined $2,300,147. Domestic
totals
acceptance credits went off 31.566,626. Advances in acceptance
were confined to export acceptances which gained in volume $2.900,665
gained
and acceptances for the purpose of creating dollar exchange which
$1,148,425.
for the
The market for bankers' acceptances has been extremely quiet
holdings
past thirty days, although there has been considerable shifting of
with their
as revealed by the recent report of accepting banks as compared
report at the end of November.
$223:bills
own
their
of
held
bankers
On Dec. 31 accepting banks and
or
679,510 and other banks bills $380,178,664. a total of $603,858,174.
about 85% of the total, which is compared with holdings of 5268,000,000
or
of own bills and $386,000,000 of other bills, a total of $654,000,900,
about 90% of the total, at the end of November.
on
Market rates for bills which went into effect at a record low level
Dec. 5 remained unchanged over the turn of the year.

The statistics made available Jan. 20 by Mr. Bean follow:
TOTAL OF BANKERS' DOLLAR ACCEPTANCES OUTSTANDING FOR
ENTIRE COUNTRY BY FEDERAL RESERVE DISTRICTS.
Federal Reserve District,

Dec. 311932.

Nov. 30 1932.

Dec. 311931.

841.929.260
570,094,674
12,302.553
9,802.986
2,024,563
8,488,948
36.693,104
1.792,822
2,209.408
800,000
1,521,952
22,069,298

$43,129,275
574,260,664
13,520,591
10,257.216
1,489,122
9,403.143
38,204,985
1,776.642
2,270,647
1,000,000
2,595,889
21,643,129

961,719.381
772,975,124
16.942.855
14,335,170
2,727,136
10,988,671
52.603,934
1,826,772
4,017,741

$709,729,568

$719,551,303

9974,059,350

89.821.735

8264,329,782

1
2

a

4
5

a

7
8
9

10

11
12
Grand total
Deervaqe

4,336,818
31,585.748

CLASSIFIED ACCORDING TO NATURE OF CREDIT.

Imports
Exports
Domestic shipments
Domestic warehouse credits
Dollar exchange
Based on goods stored in or shipped
batonn tnrolan rmIntria5

Dec. 31 1932.

Nov. 30 1932.

Dec. 311931.

$78,577,629
163,764,186
14,397,071
215,386,642
9,927,457

$80,877,776
160.863,521
15.963.697
220,652,250
8,779.032

S158,499,815
221,618,640
15.559,383
251,346,059
30,858,109

227 578 ARR

252 415.827

208.177.344

CURRENT MARKET QUOTATIONS ON PRIME BANKERS'ACCEPTANCES
JAN. 17 1933.

Days—

Dealers'
Dealers'
Buying Rate. Selling Rate.

30
60
90

Si
34
34

11
34
34

Days—
120
150
ISO

Dealers'
Dealers'
Buying Rate. Selling Rate.
%

Ji

Thomas B. Macaulay, President of Sun Life Assurance
Co. of Canada, Wins Suit for Defamatory Libel
Against J. J. Harpell.
We annex the remarks of Chief Justice Greenshields, made
in Montreal when he sentenced J. J. Harpell. Thomas B.
Macaulay, President of the Sun Life Assurance Co. of
Canada, charged Mr. Harpell with criminal libel. The
jury returned a verdict of guilty, but recommended the
defendant, Harpell, to the clemency of the court. The
remarks of Justice Greenshields follow:
Harpell. upon a complaint of Thomas B. Macaulay, you were arrested
on a charge of criminal defamatory libel. After investigation before the
magistrate, a commitment to this court intervened. The grand jury found
a true bill and upon that you were arraigned. You exercised your rights
quite properly, and to the fullest extent. You filed a plea of not guilty,
which Is the general denial of guilt. Then, with or without the permission
of the court, it is a matter of indifference, you were permitted to file a
special plea. and this Is what you said "What I said concerning the
complainant is true, it is true in substance and in fact, it is true in its
entirety, and it was in the public interest that I should publish It." And
then you proceeded to add pages of plea which I must admit I had some
difficulty in understanding, which you called a plea in justification.
Whether it was a plea to substantiate the truth of your libel or whether
it was allegations in support of the statement that it was in the public
Interest, it is very difficult to decide. I was and still am of the opinion
that at least two-thirds of that plea was absolutely unfounded in law and
since the hearing I am convinced that if the plea had stood as it originally
was filed, the result in law at least if not in fact must have been absolutely unsound.
Now, the trial took place before 12 of your peers, and probably four
days or five were occupied with your defense, and your whole defense
naturally went to establish the truth of this libel.
Somewhat startling, somewhat at least to my surprise, you entered
the witness box and, without a question from your counsel or any other
counsel, you volunteered the statement, and said; "Yes. I said he was
a crook. I meant by that that he was a thief; I meant by that that he was
a swindler, and he has been a crook, a thief and a swindler for 25 years,
and he still is." That is what you said In the box.
It was not particularly attractive, and it was somewhat startling. You
absolutely failed in one scintilla of proof in your attempt to prove that
the complainant was a crook or a thief, much less a swindler.
Now. I have to pronounce sentence. You were found guilty. The
jury recommend you to my clemency, mercy. I never inquire into the
motives which actuate a decision of a jury. I never should. And I
have not yet solved what seemed to me somewhat strange, upon what
grounds they attached this recommendation to mercy; whether it was the
manner In which you gave evidence, or consideration of your mental
did recommend
control. I don't know. It is sufficient for me that they
from me. The proyou to mercy and it will receive due consideration
difficult.
It le
often
is
persons
convicted
nouncement of sentence on
never agreeable and is sometimes highly disagreeable.




Jan. 21 1933

I want you at least to understand this, and it is to the great credit of
our English law. Vengeance has disappeared from any consideration
In the economy of the criminal law and its administration. I must not
and I will not allow the thought of vengeance to enter into any consideration in the pronouncement of my sentence. The old lax tallois. an eye
for an eye, a tooth for a tooth, has entirely disappeared from our criminal
law. The law considers two things in this country, the remedial effect
on the prisoner, on the guilty one, and the protection of society.
The man who pubdshes in his own paper or secures the use of another
paper to publish grossly defamatory libels of and concerning his neighbors
Is a dangerous man; not only does he injure the person defamed but he
Is liable to create a disturbance of the peace.
Now, you had no justification, not tho slightest justification, for the
publication of this atrocious libel against a man who has occupied an
honorable position, an honorable and successful business position in
Montreal for well-nigh half a century at least.
I have given this matter my deepest consideration. I have spoken
longer than I usually do in pronouncing sentence. My experience hail
been that lectures to prisoners are utterly useless. I have reached the
conclusion, to impose sentence of three months in jail The limit is 12.
I will impose no fine, although I might impose a fine of $200 concurrently
with the imprisonment.
Harpeh. I want to stop this. I want it to be stopped. And I order
you to enter into a bond of recognizance that you will keep the peace for
12 months, and you will enter Into that bond during the period of three
months while this sentence runs, and if you fail to enter into that bond
to keep the peace and preserve the peace, then there will be and there Is
an additional sentence of six months in jail.
Now, you understand? You enter your personal guarantee and you
will accompany it by a guarantee of some bondsman for $1 000. that you
will keep the peace for one ycar. And I condemn you to pay the costs
of your prosecution. I have no doubt Mr. Gagnon that under 1045 or
1044 I have that prerogative. I have not imposed any fine, and for that
reason I condemn you to the costs of the prosecution.
Increase in 1932 in Government Obligations Held by
New York Banks and Trust Companies.
Government obligations held by 15 leading New York
banks and trust companies increased $839,000,000 in 1932,
or 50%, so that to-day these holdings amount to $27.60 per
$100 of total funds, says the quarterly bank stock review
by Monahan, Schapiro & Co., New York. Three years ago
holdings of Government obligations were $8.70 per $100 of
total funds. It is further stated that loans and discounts of
the banks fell $1,231,000.000. or 26%, during the year, but
in spite of this the earning power of large New York City
banks was well maintained. Of the 15 banks, five showed
a net profit before dividends, and three a net gain in capital
funds after dividends. For the year, the aggregate of this
group showed a ratio of net loss (after charge-offs and contingencies, but before dividends) to capital funds of 2.67%.
There was a net decrease in capital funds for the year of
8.94%, which was accounted for by a net loss of 2.67%, and
dividend disbursements of 6.27%, the review shows.
Although net operating income was at the rate of 8% of
capital funds, and exceeded total dividend payments of
$99,586,625, there resulted a net loss of $42,362.854 before
dividends, due to write-offs. reserves and contingencies. It
is pointed out that the holdings of municipal securities Increased $216,000,000 for the same group of banks, and other
bonds and securities increased $86,000,000. The review also
says:
It is apparent that our large banking units have become gradually converted into investment trusts holding cash and Government securities.
This situation will continue as long as the Federal Government remains a
potential borrower. In the face of such conditions, an expansion In commercial loans appears unlikely. However, from the standpoint of the
banks, conversion of the short-term indebtedness of the Federal Government
into long-term bonds will mark the turning point from lowilelding Government loans to more profitable commercial borrowings.

The firm cites bank stocks as a barometer of public confidence, pointing to the fact that for the full year total
market value of the 15 New York banks advanced 13%, while
In the same period representative averages for railroad stocks
declined 18%, public utility stocks 7%, and industrial
stocks, 18%.
Loan Exhibition of Private Collection of Etchings and
Paintings of Albert H. Wiggin in Grand Central
Art Galleries.
New York art lovers were afforded their fitst opportunity
to see a comprehensive display of the works of the noted
French artist, Jean Louis Forain, when a loan exhibition of
the private collection of Albert H. Wiggin opened in the
Grand Central Art Galleries Jan. 18, to continue through
Feb. 8. Mr. Wiggin resigned last week as Chairman of the
governing board of the Chase National Bank. Although
Mr. Wiggin is best known in the world of banking and
finance, he has for a long period of years been a collector of
fine etchings and paintings, and the 271 rubjects by Forain
which will be shown in the exhibition are among his favorite
acquisitions. With regard thereto it is stated:
The eminent critic and authority on Forain. Harold J. L. Wright of
London, has written a foreword to a catalogue for the exhibition, and states
that this is the largest and most complete group of Foram, in existence.

Volume 136

,

Financial Chronicle

Among the 271 subjects are examples in oil,lithography, water color and'pen
and ink, as well as etching, in which medium Forain's art excelled.
Three of the largest rooms in the Grand Central Art Galleries, including
the famous Sargent room, have been given over to the exhibit. Mr. and
Mrs. Wiggin will be in attendance this afternoon at a reception to a large
number of invited guests.
Of particular interest to art patrons are three oil paintings, "Le Retour
de l'Enfant Prodigue," "Le Tribunal" and "La Femme a l'Eventail,"
which are among Forain's best-known works. These arrived in New York
only last week from Paris, having been shipped especially for this exhibition.

Banking Holiday in Cities of Illinois and Iowa.
From Rock Island, flI., Jan. 16, Associated Press advices
stated:
A two-week banking holiday started to-day in Rock Island, Moline and
East Moline, under proclamations of the Mayors of those cities. Six
banks were affected.
It was not expected that business houses would close under the holiday

plan.
Davenport (Iowa) banks, across the river, were not affected.

We likewise quote the following (Associated Press) from
Muscatine, Iowa, Jan. 16:
A business holiday of three weeks in Muscatine was proclaimed to-day
by Mayor Herman B. Lord.
Directors of the First National Bank and Hershey State Bank issued
statements to the effect that their institutions would remain closed for the
duration of the holiday.

Nebraska Farmers Want State Bank—Bill Would Create
Unit Capitalized from Taxes, Exclusive State
Depositary, Allowed to Give Mortgages.
The following from Lincoln, Neb., Jan. 12 is from the
New York "Journal of Commerce":
A bill introduced in the House creates a State bank with $2,500.000
capital, all of it supplied from taxation. A branch is to be established in
each of the 93 counties. All public moneys must be deposited in the State
and county banks, with interest on deposits limited to 2% and on loans
to 5%.
Five directors, one from each Congressional District, drawing $4,000 a
year are to operate the State bank, and three at $1,800 a year each the
county branches. The State directorate is made up as follows One farmer.
one laborer, one business man, one lawyer and one accountant. The State
guarantees all deposits and permits real estate loans to be made to farmers,
ranchers and home owners.

Eugene Meyer, Governor of Federal Reserve Board
Hits Plan to Widen Reserve Bank Law—Sees No
Need Now for Broadening Eligibility Provision of
Act.
From its Washington correspondent the New York
"Journal of Commerce" reported the following Jan. 18:
Further amendments of the Federal Reserve Act, broadening materially
the classes of paper eligible for discount are not immediately necessary,
according to Eugene Meyer. Governor of the Board.
The Reserve Board Governor's opinion was expressed in a letter to
Senator Norbeck (Rep. S. Dak.), Chairman of the Senate Banking and
Currency Committee, which is considering the Sheppard bill amending the
Federal Reserve Act by making notes of finance and credit companies
subject to discount. A similar letter was received from Under-Secretary
Ballantine of the Treasury Department.
Meyer Outlines Views.
The general principles involved in the determination of the eligibility of
such paper as contemplated in the Sheppard amendment are also applicable
to the notes of factors, commission merchants, warehousemen and others
similarly situated who make advances to their customers and it would
seem that, If the notes of finance and credit companies should be made
eligible, similar treatment should be afforded all paper of the same general
character. Governor Meyer explained.
"After consideration of this subject in the light of the general principles
involved and the purposes of the Federal Reserve Act, the Federal Reserve
Board does not feel justified at this time in recommending such an amendment." the letter continued.
Mr. Meyer pointed out that in this connection it should be observed that
the amendments to the Federal Reserve Act in the Glass-Steagall Act now
enable Federal Reserve banks to make advances to member banks on the
security of assets otherwise ineligible when they are without adequate
amounts of eligible and acceptable assets to enable them to obtain sufficient
credit accommodation through discounts or advances under other provisions
of the Federal Reserve Act, and for this reason particularly there is no
necessity for the immediate consideration of further amendments broadening
materially the classes of paper eligible for discount.

Recent Election of Officers of Federal Reserve Bank
of St. Louis.
At a meeting of the board of directors of the Federal Reserve Bank of St. Louis held Jan. 4, the following officers
were elected for the year 1933:
Parent bank at St. Louis: Wm. Mc0. Martin, Governor; Olin M.
Attebery, Deputy Governor; Jas. G. McConkey, Deputy Governor and
Counsel; C. M. Stewart. Secretary; A. H. Hail, S. F. Gilmore. F. N. Hall,
G. 0. Holiocher, and 0. 0. Phillips, Controllers; E. J. Novy. General
Auditor, and A. E. Debrecbt and L. A. Moore, Assistant Auditors.
Louisville Branch: John T. Moore, Managing Director; 0. A. Schacht,
Cashier, and S. B. Jenks. Assistant Cashier.
Memphis Branch. W. H. Glasgow, Managing Director; S. K. Belcher.
Cashier, and C. E. Martin, Assistant Cashier.
Little Rock Branch. A. F. Bailey, Managing Director; M. H. Long,
Cashier. and Clifford Wood, Assistant Cashier.
Walter W. Smith, St. Louis, was re-elected to represent the Eighth
Federal Reserve District in the Federal Advisory Council.

The Federal Reserve Board in Washington recently redesignated John S. Wood as Chairman of the Board and
Federal Reserve Agent, and appointed Paul Dillard, of




419

Memphis, Deputy Chairman of the Board, and John R.
Stanley, of Evansville, a Class C. director, of the parent
bank. It also re-appointed C. M. Stewart as Assistant
Federal Reserve Agent and L. H. Bailey and F.P. Maguire,
Acting Assistant Federal Reserve Agents.
Tenders of $339,567,000 Received to Offering of $75,000,000 91-Day Treasury Bills Dated Jan. 18. Bids
Accepted $75,032,000—Average Price 0.24%.
The offering of $75,000,000 or thereabouts of 91-day
Treasury bills dated Jan. 18 brought tenders of $339,567,000,
according to the announcement made by Secretary of the
Treasury Mills on Jan. 16. The total amount of bids accepted was $75,032,000, and the average price of bills to
be issued is 99.941—the average rate on a bank discount
basis being about 0.24%. The latter rate compares with
0.20%, the average rate on the bills dated Jan. 9, and
0.09%, for the issue dated Dec. 28.
Secretary Mills' announcement of Jan. 16 regarding the
result of the $75,000,000 offering of bills dated Jan. 18
follows:
Secretary of the Treasury Mills announced to-day (Jan. 16) that the
tenders for $75,000.000, or thereabouts, of 91-day Treasury bills dated
Jan. 18 1933, and maturing April 19 1933, which were offered on Jan. 12.
were opened at the Federal Reserve banks on Jan. 16.
The total amount applied for was $339,567.000. Except one bid for
$25,000 at 99.981. the highest bid made was 99.962. equivalent to an
interest rate of about 0.15% on an annual basis. The lowest bid accepted
was 99.935, equivalent to an interest rate of about 0.26% on an annual
basis. Only part of the amount bid for at the latter price was accepted.
The total amount of bids accepted was $75.032,000. The average price
of Treasury bills to be issued is 99.941. The average rate on a bank discount basis is about 0.24%.

Offering of $80,000,000 or Thereabouts of 91-Day
Treasury Bills Dated Jan. 25.
Tenders for a new issue of 91-day Treasury bills to the
amount of $80,000,000 or thereabouts will be received at
the Federal Reserve banks or their branches up to 2 p. m
Eastern standard time on Monday,Jan.23. The new bills will
replace a maturing issue of 0,295,000. The Treasury bills
are sold on a discount basis to the highest bidder. The
announcement of the new offering on Jan. 17 by Secretary
of the Treasury Mills said in part:
The Treasury bills will be dated Jan. 25 1933, and will mature on April 26
1933, and on the maturity date the face amount will be payable without
interest. They will be issued in bearer form only, and in amounts or
denominations of $1.000, $10,000. $100,000. $500.000 and $1,000.000
(maturity value).
No tender for an amount less than $1,000 will be considered
Each
tender must be in multiples of $1,000. The price offered must be expressed
on the basis of 100, with not more than three decimal places. e. g., 99.125.
Fractions must not be used.
Tenders will be accepted without cash deposit from incorporated banks
and trust companies and from responsible and recognized dealers in investment securities. Tenders from others must be accompanied by a deposit
of 10% of the face amount of Treasury bills applied for, unless the tenders
are accompanied by an express guaranty of payment by an incorporated
bank or trust company.
Immediately after the closing hour for receipt of tenders on Jan. 23 1933,
all tenders received at the Federal Reservi banks or branches thereof up
to the closing hour will be opened and public announcement of the acceptable prices will follow as soon as possible thereafter, probably on the
following morning. The Secretary of the Treasury expressly reserve; the
right to reject any or all tenders or parts of tenders, and to allot less than
the amount applied for, and his action in any such respect shall be final.
Those submitting tenders will be advised of the acceptance or rejection
thereof. Payment at the price offered for Treasury bills allotted must be
made at the Federal Reserve banks in cash or other immediately available
funds on Jan. 25 1933.
The Treasury bills will be exempt, as to principal and Interest, and any
gain from the sale or other disposition thereof will also be exempt, from
all taxation, except estate and inheritance taxes. No loss from the sale
or other disposition of the Treasury bills shall be allowed as a deduction,
or otherwise recognized, for the purposes of any tax now or hereafter imposed by the United States or any of its possessions.

President Hoover Donates His Camp on Rapidan River
(Virginia) to State as Part of Shenandoah National
Park for Use of Other Presidents.
President Hoover and Mrs. Hoover have donated their
camp, the summer White House, in Madison County, Va.,
to the commonwealth with the request that it be made a.
part of the Shenandoah National Park, William E. Carson,
Chairman of the State Commission on Conservation and
Development, announced at Richmond, Va., on Jan. 10,
according to Associated Press advices from that city, which
also sold:
The deed was made to Mr. Carson as trustee, and in It was expressed
Mr. Hoover's desire to have the camp made a part of the proposed National
Park and preserked for the use of other Presidents who may wish to
camp there.
A letter from the President to Mr. Carson, incorporated in the deed of
trust, reiterated his original intention in regard to the camp as expressed
on Aug. 2 1929, as follows:
Aa I told you some months ago. I should like to put It in permanent form for the
use of my successors . . . I desire that the camp shall ultimately become the
property of the Shenandoah National Park so that at the expiration of my Xerm

Financial Chronicle

420

of office, they may hold It for my successors for a week-end camp, or, If future
Presidents do not wish to avail themselves of it, it Is at the disposal of the park itself.
Therefore I would be glad to either deed it now or await the transfer of the park to
the Federal Government, whichever you think best.
The area covered in the deed includes three tracts, the camp tract of
164 acres, the President's school tract of 1.58 acres, both owned in fee
simple by Mr. Hoover, and a 46.5-acre tract near the camp, in which leasehold rights were held by the President.
The camp proper is located near the confluence of Mill Prong and Laurel
Prong of the Rapidan River.

A Richmond dispatch, Jan. 10, to the New York "Times,"
stated:
Though the land has been appraised for the Conservation Commission
at $30,000, Mr. Carson said that the President had spent about $114,000
on the camp, including the building and outfitting of log cabins for the
use of himself and guests on week-end visits.

President Hoover Extends for Two Years Warehousing
k Period for Storing Grain Imports Under Tariff Act.
Declaring that an emergency exists under Section 318 of
the Tariff Act of 1930, President Hoover has issued a proclamation authorizing the Secretary of the Treasury to extend
until further notice the warehousing period for all merchandise except grain imported during 1930 and entered for
warehousing under Section 557 of the Tariff Act of 1922 or
Section 577 of the Tariff Act of 1930. The proclamation,
which was made public at Washington on Jan. 3, was published as follows in the "United States Daily":
Text of Proclamation.
A Proclamation by the President of the United States of America:
Whereas Congress enacted and the President, on the 17th day of June
1930 approved a law known as the Tariff Act of 1930, Section 318 of which
provides, in part:
"Whenever the President shall by proclamation declare an emergency to
exist by reason of a state of war, or otherwise, he may authorize the Secretary
of the Treasury to extend during the continuance of such emergency the time
herein prescribed for the performance of any act. . . ."
And whereas, it is essential that the authority conferred upon the President therein be at this time exercised to the extent hereinafter set forth:
Now, Therefore. I, Herbert Hoover, President of the United States of
America, acting under and by virtue of the authority aforesaid, do hereby
find and determine, and by this proclamation do proclaim, an emergency
to exist, for sufficient reasons me thereunto moving.
Extension Directing.
And I do further procialm and make known that, in my judgment, it is
necessary and proper, because of the emergency, that all merchandise imported during the calendar year 1930 and entered for warehousing under
Section 557 of the Tariff Act of 1922 or Section 577 of the Tariff Act of 1930
(except grain entered for warehousing under Section 557 of the Tariff Act
of 1930) shall be permitted to remain in warehouse for a further period,
and 1. therefore, hereby authorize the Secretary of the Treasury, until
further notice, to extend the warehousing period for such merchandise so
that it may remain in warehouse for periods not exceeding two years after
the expiration of the three years prescribed in Sections 557 and 559 of the
Tariff Acts of 1922 and 1930:
Provided, however, that in each and every case the Secretary of the Treasury shall require that the principal on the warehouse entry bond, in order
to obtain the benefits under the extension granted, shall furnish to the
collector of customs for the district in which the merchandise is warehoused
the assent of the sureties on such bond, agreeing to remain bound under
the terms and provisions of the bond to the same extent as if no extension
were granted, or shall furnish an additional bond with acceptable sureties
to cover the extended period.
Provisions for Wool.
And I do further proclaim and make known that, in my judgment, it is
necessary and proper, because of the emergency, that all wool imported or
withdrawn from bonded warehouse during the calendar year 1930 conditionally free of duty, under bond, for use in the manufacture of rugs,
carpets, or other floor coverings, under the provisions of paragraph 1101
of the Tariff Act of 1922, and that all wool or hair of the camel imported
or withdrawn from bonded warehouse during the calendar year 1930 conditionally free of duty, under bond, for use in the manufacture of press
cloth, camel's-hair beltings, rugs, carpets, or other floor coverings, or in the
manufacture of knit or felt boots or heavy fulled lumberman's socks, under
the provisions ot paragraph 1101 of the Tariff Act of 1930, shall be permitted
a further period during which proof that the wool or hair has been so used
may be furnished; and I, therefore, hereby authorize the Secretary of the
Treasury, until further notice, to extend the period during which proof of
use may be furnished, so that such proof may be furnished during periods
not exceeding two years after the expiration of the three years prescribed
In said paragraph 1101:
Provided, however, that in each and every case the Secretary of the
Treasury shall require that the principal on the bond, in order to obtain
the benefits under the extension granted, shall furnish to the collector of
customs for the district in which the bond was given the assent of the
sureties on such bond, agreeing to remain bound under the terms and provisions of the bond to the same extent as if no extension were granted, or
shall furnish an additional bond with acceptable sureties to cover the extended period.
Extension to Philippines.
And I do further proclaim and make known that, in my judgment, it is
necessary and proper, because of the emergency, that, as to articles manufactured or produced in the United States with the use of imported or substituted merchandise for drawback purposes under Section 313 of the Tariff
Act of 1930, a further period for exportation (or shipment to the Philippine
Islands) of the completed artic,e should be permitted in those cases where
the imported merchandise involved was imported during the calendar year
1930 and I. therefore, hereby authorize the Secretary of the Treasury to
extend the period for exportation (or shipment to the Philippine Islands)
include not exceeding five
of the completed article in such cases, so as to
years after importation of the imported merchandise instead of three years
the
Tariff
Act
of
of 1930.
313(h)
section
as prescribed in
the seal of
In witness whereof. I have hereunto set my hand and caused
the United States to be affixed.
1932.
of
December
Done at the City of Vashington this 23d day




Ian. 21 1933

House Tables McFadden Resolution Proposing to
Impeach President Hoover.
For the second time at this session of Congress a resolution offered by Representative McFadden (Rep.), of
Canton, Pa., to impeach President Hoover of "high crimes
and misdemeanor" on a variety of allegations was laid on
the table by the House on Jan. 17. The "United States
Daily" of Jan. 18, reporting this, added:
The vote was on a motion by Majority Leader Rainey (Dem.), of Carrollton, Ill. The vote tabling the resolution was 343 ayes to 11 nays,
one present and not voting.
On the earlier occasion. Dec. 13 1932, when a similar resolution was
offered by Mr. McFadden in the House, the vote tabling the impeachment
proposal was 361 ayes. 8 nays and 60 not voting.
Resolution Read in House.
Representative McFadden presented his charges in a lengthy resolution
which Speaker Garner (Dem.), of Uvalde, Tex., ordered read to the House.
"On my own responsibility as a member of the House," the resolution
stated, "I impeach Herbert Hoover. President of the United States, of
high crimes and misdemeanor."
The resolution then referred to various allegations. They included
charges that the President in violation of the Constitution and the laws
of the United States had usurped legislative powers and functions and
had interfered with freedom of debate in Congress, had shown disrespect to
Congress, had pursued a policy inimical to the United States, dissipated
financial and other resources of the United States, and had attempted to
impair the validity of contracts between the United States and foreign
nations.
Point of Order Denied.
When the reading of the resolution began Representative Luce (Rep.).
of Waltham, Mass., saying the charges are of the same purpose as in the
resolution heretofore tabled, asked if the member presenting the resolution
a second time was not evading the rules of the House. The Speaker said
an impeachment resolution could be presented a second time and that its
reading should be completed.
Representative Britten (Rep.), of Chicago, Ill., suggested the resolution
be considered as having been read, but the clerk continued to read. Majority Leader Rainey then moved to table the resolution and the roll call
followed.

The previous action of the House in tabling a similar
resolution of Representative McFadden was noted in our
issue of Dec. 17, page 4151.
On Jan. 18 Associated Press advices from Washington
stated:
Representative McFadden tried unsuccessfully to address the House
for an hour to-day on his resolution, twice tabled, for the impeachment
of President Hoover. Speaker Garner held that Mr. McFadden must
present an impeachment resolution before being allowed to proceed. Since
the resolution had been tabled twice before, he did not introduce It again.
The Pennsylvanian had tried to get unanimous consent to make his speech,
but Representative Barbour objected.

Appointment of Commission by Dr. Nicholas Murray
Butler of Columbia University to Investigate
Economic Situation—Benjamin M. Anderson Jr.
of Chase National Bank and Walter Lippmann
Among Appointees.
On Jan. 15 Dr. Nicholas Murray Butler of Columbia
University announced the appointment of a commission
to investigate the present economic crisis. Dr. Butler
announced that the Commission "will consider the whole
question of the effect of recent technological advance,
particularly as manifested in mass production." The commission will consist of 17 members, 7 from Columbia University, 4 from other universities and 6 from among students
of economics and public affairs.
Dr. Butler's announcement said:
It has been found possible to make provisions for such a commission
to consider and formulate conclusions concerning the present economic
crisis. The inquiry will be directed in particular to the technique of production and the technique of exchange, which have evolved, not in interdependence, but in semi-independence each of the other, with the result
that they are not now functioning in harmony for the service of society.
This commission will consider the whole question of the effect of recent
technological advance, particularly as manifested in mass production and
Its effect upon economic processes and social welfare. The task will not
so much involve the collection of new data as it will reflection upon and
Interpretation of the vast amount of information already available to
scholars. The aim of the commission will be to arrive, if practicable, at
a common viewpoint and a common interpretation to the public of the
meaning of the circumstances and conditions which confront the people of
the United States and the world.
It is a source of profound satisfaction that Columbia University is once
more able to put its ripe and well-tested scholarship at the service of the
public in a field which reaches every citizen of this land, and indeed the
whole world.

Dr. Butler indicated that the specific topics to which the
attention of the commission will be given will include:
1. Analysis of the part played by the price system in the direction of
production.
2. Analysis of the fluctuating relationships of income, investment and
consumption within the present price system.
3. Examination of price controls to maintain stability (a) of internal
prices, (b) of international exchange parities in periods of industrial expansion and retraction.
4. Examination of the adequacy of present monetary systems under
modern industrial conditions.
5. Examination of the economic consequences of improvements in
productive technique.
6. Formulation of consequent policies.

Volume

136

Financial Chronicle

The personnel of the commission as given in the New
York "Herald Tribune" follows:
From Columbia University.
Robert M. McIver, Chairman, Lieber Professor of Political Philosophy
and Sociology.
James W. Angell, Professor of Economics.
Adolf A. Berle Jr., Associate Professor of Law.
John M. Clark, Professor of Economics.
Arthur D. Gayer, Lecturer in Economics Barnard College.
Wesley C. Mitchell, Professor of Economics.
Leo Wo!man. Professor of Economics.
From Other Universities.
Alvin H. Hansen, Professor of Economics University of Minnesota.
James H.Rogers, Sterling Professor of Political Economy Yale University.
Josef A. Schumpeter, Professor of Economics Harvard University.
Jacob Viner, Professor of Economics University of Chicago.
Non-academic Members.
Benjamin M. Anderson, economist of the Chase National Bank, 18 Pine
Street.
'Edmund E. Day, director for social sciences of the Rockefeller Foundation, 61 Broadway.
Alvin Johnson, director of the New School for Social Research, 66 West
12th Street.
Walter Lippmann, special writer for the New York "Herald Tribune,"
230 West 41st Street.
Harlow S. Person, director of the Taylor Society, 29 West 39th Street.
George H. Soule, director-at-large of the National Bureau of Economic
Research, 51 Madison Avenue.

Dr. Nicholas Murray Butler Gives Plan to End Depression—Five-point Program Based on Quick Revision
of Tariff and Actual Disarmament—Asks Debt Reviews Now—Calls Halt on Congress—League Group
Told World Court Accord Also Is Needed Step to
Economic Recovery.
Dr. Nicholas Murray Butler, President of Columbia
University and of the Carnegie Endowment for International
Peace, set forth a five-point program for promoting world
peace and hastening the end of the depression, in a radio
address from the Columbia Broadcasting Station in New
York on Jan. 13. In the New York "Times" of Jan. 14
it was stated that the speech was a feature of the dinner of
the League of Nations Association at St. Louis as part of
a three-day convention to celebrate the founding of the Association. Dr. Butler is Chairman of the National Advisory
Council of the Association. Guests at the dinner listened to
Dr. Butler over the radio, as did groups of Association
members in 500 cities. From the "Times" we quote further as follows:
Declaring that world-wide economic war was being carried
on by moan
of high tariffs, trade restrictions, depreciated currencies and
disrupted
international exchanges at a rate that would cause international
trade to
disappear entirely within a few years, Dr. Butler offered these
five points:
1. Actual disarmament, and not mere equalization of
armaments at
the forthcoming disarmament conference.
12. Action at the corning economic conference to restore
world trade,
markets for our farms and factories, railway traffic
and employment,
by removing barriers to world trade without hindrance
from "outworn
political formulas, traditions and passwords."
3. Immediate favorable reply by Washington
to the request of the
debtor nations for war debt reconsideration
, and quick settlement in
the spirit of the Lausanne reparations agreement.
4. Senate ratification of the World Court protocol.
6. Increased co-operation with the League
of Nations.
Dr. Butler's Address.
The text of Dr. Butler's address follows:
There is no time to waste upon generalities
or formalities. The modern
world is in the gravest crisis in its history. The duty and
the opportunity
of the people of the United States and of their
Government are imperative
and unexampled. It is for them to decide, and quickly,
whether they
will dawdle and falter and do nothing, and thus permit the present
economic
and financial depression to continue to its certain and disastrous and,
or
whether they will now take those steps, and insist upon
their being taken,
which alone can point the way to a happier and a better day.
We must not shut our eyes to obvious facts. The great forward
movement for international understanding and international co-operation
to
promote the peace and the happiness of the world which will
forever be
associated with the names of M. Briand and of M. Stresemann,
with the
Treaties of Locarno and the Pact of Paris, which renounces war as
an instrument of National policy has been rudely checked. We are in a
period
of reaction and bourbonism which is well-nigh world-wide.
Bitter and relentless international war is going on in thefield of
economics
and finance, with the result that the trade of the world is strangulated and
is sick unto death. Should international trade continue to decline at the
same rate as during the past three years, it will disappear entirely within
a few years' time, and each separate and isolated nation will be left to a
quiet economic death in its own lonely bed.
Barriers to World Trade.
This economic war is being carried on with four weapons which are
quite as destructive of peace and human happiness as are battleships and
guns, airships and poison gas. These are high tariff walls, trade prohibitions and quotas, depreciated currencies, and disrupted international
exchanges. These are the weapons which must now be renounced
and
displaced if this destructive and devastating war is to be brought to an
end. There can be little use of renouncing war as an instrument of National
policy if economic weapons be quickly substituted for those laid down by
the military and naval forces of the nations.
There is being celebrated throughout this land, and particularly in
the City of St. Louis, at the Hotel Jefferson, the 10th anniversary of the
organization of the League of Nations Association. This Association has
has a large and representative membership of men and women of every
class and creed and interest who are concerned with the establishment of
sound and continuing policies of international co-operation for the up-




421

holding of international peace and for the advancement of international
prosperity. What are the specific things which the American people now
can and should do and insist upon being done by their unhurrying Government?
First, they should make it plain that they demand from the coming
disarmament conference such conclusions and agreements as shall actually
disarm the nations for military and naval war and not merely equalize
the irestablishments and equipmentsfor the killing of men and the devastating
of cities and towns under the guise of gaining security. Only by so doing
can we cease stimulating the war-making spirit and lift a huge and unnecessary burden of tax from the patient backs of the people of every land,
including our own.
Second, we must not permit outworn political formulas and traditions
and passwords to stand in the way of the work of the coming economic
conference. This conference offers distinct and quick possibility ofrestoring
the world's trade and industry, of again providing markets for our farmers
and our industrialists, occupation for our wage-workers and traffic for our
railways by bringing about the reduction or removal of the many barriers
to international trade which now everywhere exist. That is a pretty poor
system of protection to American labor and American industry which sends
from 10,000,000 to 12,000,000 of unemployed to walk the streets, which
shuts down factories and leaves our wheat and our cotton to rot in the
fields.
Settlement of War Debts.
Third, we should bring to an end the inconsequent and supremely stupid
discussion which has been going on in part at Washington and in part in a
portion of our daily and periodical press relating to the so-called intergovernmental war debts. Here the question has nothing whatever to do
with the origin and character of those debts or even with the capacity of
the debtors themselves to pay. It has wholly to do with our capacity
to receive payment under the only terms of international transfer which
are open, without inflicting upon ourselves new and devastating capital
losses as well as additional losses of income, of markets and of opportunity
for employment.
We should give immediate favorable response to the request of the
debtor nations to reconsider the world-wide problems which have arisen
from the existence of these debts and try quickly to solve those problems
in the spirit of the agreement signed at Lausanne on July 9 last between
Germany and the former Allied powers. Such an action would be like
blood transfusion to a weakend human being. New strength, new hope.
new confidence would follow almost instantly.
Every voice that is raised at Washington against this action is a voice
in favor of prolonging and increasing the losses, the suffering and the
unemployment of the American people.
Then we should insist that the Senate of the United States leave off
its long continued misrepresentation of American public opinion and quickly
consent to the ratification on behalf of our Government of the Protocol of
Accession of the United States to the Permanent Court of International
Justice, which our Government signed on Dec. 9 1929. Such action
would be in strict accordance with American traditional policy and in conformity with long-standing American leadership. It has been in substance recommended by every President sines William McKinley and by
every Secretary of State since John Hay.
Public opinion throughout the land is, and long has been,over-whelmingly
n support of this action, but a small group of opposing Senators, taking
advantage of the rules of the Senate, has prevented that public opinion
from finding its long-desired expression.
Co-operation with the League.
And, finally, we should continue and multiply our contacts and our
co-operation with the League of Nations itself. We are not members
of that body, but the work which it is doing is work which vitally affects
our interests and which accords with our ideals. In so new and so difficult
a field, success cannot be achieved in a day nor perfection reached in a
twelve-month.
Let us, then, on this 10th anniversary day give to our whole American
people a call to action which will stir them not to idle talk but to earnest
and insistent demand that the things upon which their hearts are set and
upon which their peace and prosperity rest be done, and done at once, by
their Government, regardless of those who are concerned merely with
manoeuvring for political advantage or with avoiding definite action in
order not to alienate some unreasonable and contentious group. Such is
the job of to-morrow.
My fellow Americans, this is our job.
Dr.

Butler

Disavows Link to Technocracy—Says
University Only Houses Engineer

Columbia
Group.

Dr. Nicholas Murray Butler, President of Columbia
University, has disavowed any academic connection between
the University and technocracy, the group of engineers
housed on the Columbia campus who are engaged in research
on an "Eller& Survey of North America," it became known
on Jan. 17. The New York "Times" of Jan. 18, from which
we quote, further said:
Dr. Butler declared in a letter to Walter L. Clark, an
engineer. of 15
Vanderbilt Ave., replying to a query from Mr. Clark, that "as part of
unemployment relief, it gave working space to a group of engineers
and architects who had nowhere else to go." He said that Columbia had
no more to
do with the group than with the fourth dimension.
Dr. Butler sent Mr. Clark's letter to Professor Walter
Rautemstrauch,
head of the University's Department of Indistrual Engineering,
who
recently discussed the work of technocracy at the mid-win
ter session of the
American Association for the Advancement of Science at Atlantic
City and
who has been a patron of the group.
Prefessor Rautenstrauch pointed out at his home in Palisade. N. J., last
night that the University has done no more than
house the group and that
Its members, inclduing 'Toward Scott,
Director of Technocracy, "have
never claimed any connection with the University."
He pointed out that the arrangements by which
the University and the
engineers and architects' relief committee, under the auspices of the Emergency Unemployment Relief Committee, achieved a plan of co-operation
had been printed at the time in the newspapers
and that there had been no
grounds for any misunderstanding of the positions of the University
and the
group.
The first "official report" on the research on which
the group is engaged is
being prepared, Professor Rautenstrauch said. He
explained he could not
say when it would be published, since the
work was not yet completed and
until it was there would be no indication by which
a date could be set. He
pointed out that other reports would follow on the completion of phases
of

N

Financial Chronicle

422

a
the study, but that much was expected from the group, since it provided
body for continuing researches on industrial development.
The report, he believed, would present equations on industrial growth
similar to those on which his Atlantic City paper was based.

The letter of Dr. Butler to Mr. Clarke was published as
follows, in the New York "Herald Tribune":
COLUMBIA UNIVERSITY.

Jan. 111932.
Walter L. Clark, Esq.,
15 Vanderbilt Ave.,
New York, N.Y.
Dear Mr. Clark:
I thank you for yours of the 10th, which I am sending to my colleague,
Professor Walter Rautenstrauch, head of our Department of Industrial
Engineering.
Columbia University has no more to do with Technocracy than it has
with the fourth dimension. As part of unemployment relief, it gave working
space to a group of engineers and architects who had nowhere else to go.
Some of these men have been carrying on most interesting and useful inthem,
quiries into the facts of technological development, and a very few of
plus the sensational press, have put upon these facts, so far as gathered,
interpretations which they do not and cannot bear, but which, because of
their more or lees sensational character, have attracted the attention of the
public.
The Dean of the Faculty of Engineering has written for the coming issue
of "The American Banker" an article which explains the whole situation.
Faithfully yours,
NICHOLAS MURRAY BUTLER.

Senate Votes Arms Export Powers to President Hoover-Resolution Gives Executive Right to Act With
Other Nations in Providing Curb.
Without debate or a record vote the Senate on Jan. 19
adopted a joint resolution giving President Hoover authority
to co-operate with other governments in controlling exports
of arms to other countries where they would be used "for
military purposes." A dispatch Jan. 19 from Washington
to the New York "Times" added:

The House must concur in the resolution. It was called up in the Senate
by Senator Borah, chairman of the Foreign Relations Committee.
Mr. Hoover requested such authority in a special message to Congress
treaty
on Jan. 10 as an alternative if the Senate did not see fit to ratify a
drafted in 1925 empowering the President to declare an embargo on arms
shipments abroad in co-operation with the heads of other governments.
The Senate Foreign Relations Committee declined to report out the 1925
treaty, but endorsed unanimously the joint resolution framed at a meeting
attended by Under-Secretary of State Castle and Assistant Secretary
Francis R. White.
Since Mr. White, whose specific responsibilities concern Latin America,
was called into consultation it is believed that Mr. Hoover wrote his message
as a direct result of disturbed conditions in South America.
Under the terms of the resolution the United eltates itself would not
undertake to declare individually an embargo on arms shipments abroad,
but would take such action only in concert with "the principal armsproducing countries."

President Hoover Again Urges Upon Congress Necessity
of Balancing Budget—Sales Tax Regarded as
Providing Substantial Increase in Federal Revenues—Retirement of Treasury from Market as
Borrower Necessary Incident to Recovery—Refunding of Liberty Bonds.
Supprementing his budget message presented to Congress
in December, President Hoover on Jan. 17 again brought the
subject before Congress. In his latest communication the
President reminds Congress that "the balancing of the
budget is one of the essential steps in strengthening the
foundations for recovery." Pointing out the urgency of
cutting down Federal expenditures, the President said: "If
the Congress would accept the cuts recommended in the
executive budget and also the genuine cuts made by the House
Committee on Appropriations or as passed by the House it
would represent a real decrease in Government expenses
over those in the budget in respect to these bills of some
$23,500.000."
According to the President, "no matter how rigid economies may be, it is obvious that the budget cannot be balanced
without a most substantial increase in revenues." He added:
But the progress of appropriation bills, however, would indicate that
the executive recommendations on which all these calculations are based
will not be realized by $100,000,000 or more, and therefore it is more
than likely that the deficit will amount to from $500,000,000 to $700,000,000.

In the view of the President, "the field for substantial
Increase in Federal Government revenues resolves itself to
the exploration of the possibilities of so-called excise or sales
taxes." The President observed that "of the taxes now
levied nearly $200,000,000 are upon essentials as distinguished
from so-called non-essentials. The Congress has thus already
established a 'sales tax' as the basis for one-quarter of the
whole public revenues and has already adopted 'sales' taxes
upon essentials as distinguished from non-essentials. To
extend this form of taxation is neither new nor revolutionary." The President referred to the fact that for some
time "long-time funds have not been available for the public
at reasonable rates," and he added: "The retirement of




Ian. 21 1933

the Federal Treasury from the market as a constant borrower,the balancing of the Federal budget, and the refunding
operations necessary to bring the Government debt into
better balance would have a stimulating effect, would vitalize
our entire credit structure and produce one of the conditions
essential to continued recovery."
Likewise the President declared it essential "that the Government undertake at an early moment the refunding of outstanding high interest-bearing Liberty bonds into bonds
bearing a lower rate of interest. It is essential, too, that a
portion of our short-term borrowing should be converted
into longer-term issues. A balanced budget," he said,"would
greatly facilitate such an operation."
In conclusion, the President held that "one of the most
helpful contributions which the Congress and this Administration could give to the next Administration would be to
enable them to start with the Federal budget in balance
and the Federal finances in order."
The President's message follows in full:
In my budget message of Dec. 5 I laid before the Congress the financial
situation of the Government together with proposals for the next fiscal year.
It was pointed out that, due to decreasing revenues and despite the efforts
of the Congress and the Administration, we were again faced with a deficit
during the next fiscal year. I urged upon the Congress the necessity for
further drastic reduction in expenditures and increase in revenues.
I now approach the Congress again upon this subject, knowing that the
members are fully possessed of the complete necessity of a balanced budget
as the foundation of economic recovery and to urge that action should be
taken during the present session to bring this about.
The great problem before the world to-day is a restoration and maintenance of confidence. I need scarcely repeat that the maintenance of
confidence in the financial stability of the United States Government is
the first contribution to all financial stability within our borders, and in
fact in the world as a whole. Upon that confidence rests the credit of the
States, the municipalities, all our financial institutions and industry—it
is the basis of recovered employment and agriculture.
The increases in revenues enacted at the last session have not had the
results hoped for because of continued economic stagnation. The income
of the Government for the next fiscal year, nominally estimated at $2,950,000,000, is likely to fall short under present world conditions by anywhere
from $100,000,000 to $300,000,000.
Expenditures (and I speak in terms of expenditures rather than appropriations) because of the confusion caused by carryover of appropriations for
the present fiscal year, including Post Office deficit but excluding debt
redemption, are estimated at about $3,771,000,000. If expenditures are
continued during the next fiscal year at the present rate there would thus
be a deficit of from $920,000,000 to $1,120,000,000 in the next fiscal year,
exclusive of sinking-fund charges.
Reduction in Expenditures Essential.
Obviously, the first necessity of a nation of decreasing income is reduction
In expenditures. My message of Dec. 6, as supplemented, recommended
very large specific reductions of appropriations and economies for the next
fiscal year. These proposals (including the effect of previous appropriations
and obligations) would reflect an expenditure next year excluding debt
redemption but including Post Office deficit of about $3,233,000,000, a
decrease as compared to the current year of about $538,000,000.
Assuming that these economies and reductions of appropriations will be
adopted, on this basis of calculation there would still be a deficit, exclusive
of debt redemption, of about $400,000,000 to $600,000,000. Certainly
with the general economic outlook in respect to income and the legislative
outlook in respect to recommended economies the latter figure is the most
likely of realization.
The first essential is that the maximum appropriations and economies
set out in the budget message as supplemented should be adhered to. The
second is that there should be no new authorizations or appropriations
brought forward. The third is that even the appropriations recommended
should be reduced at every point the Congress is able to find an avenue
therefor.
So far as appropriation bills as dealt with by the House of Representatives
or the committees thereof are concerned, the results have been disappointing. Maximum appropriations for the different departments which
were recommended in the Executive budget have not been adhered to.
Consolidation of Government Divisions.
My Executive orders to consolidate some 58 Government functions into a
few divisions, with resulting economies, appears likely of refusal by the
Congress, with resultant continuing waste. I regret to say that the same
forces are at work which thwarted the savings of several hundred millions
we sought to effect at the last session of Congress. We are, during the
current year, and even in the next fiscal year, suffering from that failure.
Appropriation Bills.
In the five departmental bills dealt with by the House or by the committees thereof at this session, a total of appropriations were recommended
by the Executive which would result in an expenditure (exclusive of debt
redemption) of $2,263,000,000, being a decrease of expenditures in these
departments of $284,400,000 under the present fiscal year. Some items
In these bills have been genuinely decreased by action of the committees or
the votes of the House. Others have been increased. Still others have
been given the appearance of reduction, but in reality must be restored
during the next fiscal year by deficiency bills.
The items in which there have been genuine decreases in these appropriations aggregate about $23,600,000. (But of this $10,000,000 is reduction
In the public buildings for which commitments have been authorized.)
Items have been decreased which will in all probability be required
through deficiency bills amounting to approximately $41,400,000.
Items have been increased amounting to approximately $58,200,000.
There is thus produced an appearance of slightly greater saving than
recommended in the Executive budget, but in reality an actual increase by
over $35,000,000. If the Congress would accept the cuts recommended in
the Executive budget and also the genuine cuts made by the House Committee on Appropriations or as passed by the House it would represent a
real decrease in Government expenses over those in the budget in respect
to these bills of some $23,500,000.
There are yet remaining to be reported appropriation bills in which
reductions have been recommended by the Executive which would secure

Volume 136

Financial Chronicle

reductions on those agencies of $249,000,000 Jess than those of the
current year.
In consideration of reductions I realize the pressures upon the Congress.
I also recognize many organizations advocating economy do not fully understand the limitations under which the Congress works in reduction of expenditures. In order to clarify this I may classify the Government expenditures
proposed for the next fiscal year into six groups (excluding debt redemption
but including post office deficit):
1. Interest on the public debt which cannot be reduced
$725,000,000
2. Trust funds, tax refunds. District of Columbia budget, dontribution.s to civil service pensions. Post Office subsidies to air and
foreign mail, which are represented by fixed obligations and
other similar items on which there is no opportunity to reduce_ 810,900,000
8. Public works and their maintenance (excluding military, naval and
veterans' construction, which are In following Items) has been
reduced practically to commitments and contracts outstanding 305,000,000
4. Expenditures on military establishments
612,700,000
5. Expenditures on veterans have been reduced in the Executive proposals by $121,000,000
818,400.000
6. All other expenditures of the Government, including the legislative,
the Judiciary, law enforcement, prisons, foreign affairs, fiscal
and tax service, public health, education, forests, fisheries, aids
to agriculture, labor, commerce, safety of life at sea, ins-pee
Don of food products, and a multitude of vital services, Including
the Post Office as represented by the remaining deficiency and
other Independent establishments except the Veterans' Bureau 461,000,000
$3,233,000,000
It will be seen that about 86% of the whole expenditure of the Government lies in the first five items.
No matter how rigid economies may be it is obvious that the budget
cannot be balanced without a most substantial increase in revenues. But
the progress of appropriation bills, however, would indicate that the
Executive recommendations on which all these calculations are based will
not be realized by $100,000,000 or more, and therefore it is more likely that
the deficit will amount to from $500,000,000 to $700,000,000.
Taxation—Sales • Tax.
In canvassing the three major fields of possible income, that is, income
taxes, customs and excise taxes, I believe that inquiry by the Congress
will develop that income taxes under the Act of 1932 have been developed
to the point of maximum productivity unless we are prepared to abandon
our American system of fairly high exemption and reasonably low rates
applicable to the smaller incomes, and in any event by keeping to these
principles no further burdens in this direction would substantially increase
revenues and solve the questions.
One of the first economic effects of the Increases already made is the
retreat of capital into tax-exempt securities and the denudation of industry
and commerce of that much available capital.
The customs revenues and other miscellaneous revenues are not likely to
be increased except through recovery in trade. In my view, therefore, the
field for substantial increase in Federal Government revenues resolves
itself to the exploration of the possibilities of so-called excise or sales
taxes.
In the estimated revenues for the next fiscal year nearly $700,000,000
is comprised of so-called excise taxes which are levied on a few score
different manufactured . commodities. These taxes are in fact manufacturers' sales taxes. Any attempted distinction between "excise" taxes
on manufactured commodities or "sales" taxes on manufactured commodities
is mere juggling with words.
Of the taxes now levied nearly $200,000,000 are upon essentials as distinguished from so-called non-essentials. The Congress has thus already
established a "sales tax" as the basis for one-quarter of the whole public
revenues, and has already adopted "sales" taxes upon essentials as distinguished from non-essentials.
To extend this form of taxation is neither new nor revolutionary. Instead
of spreading it over a few scores of commodities and services at irregular
rates which cause discrimination and hardship between industries, it would
seem the essence of good statesmanship to apply such a tax generally at a
low rate upon all manufactures except upon food and cheaper grades of
clothing, and thereby give to the Federal Government a stable basis of
income during the period of depression.
Balancing of Budget.
The balancing of the budget is one of the essential steps in strengthening
the foundations for recovery. Capital expenditures are a very important
item in our economic life. There can be no doubt that there is an
enormous accumulated demand for capital funds that would be expended
for equipment and replacements of all kinds if long-time funds could be
obtained cheaply and if confidence were restored.
For some time now long-time funds have not been available for the
public at reasonable rates. The retirement of the Federal Treasury from
the market as a constant borrower, the balancing of the Federal budget, and
the refunding operations necessary to bring the Government debt into
better balance would have a stimulating effect, would vitalize our entire
credit structure, and produce one of the conditions essentiol to continued
recovery.
It is essential that the Government undertake at an early moment the
refunding of outstanding high interest-bearing Liberty bonds into bonds
bearing a lower rate of interest. It is essential, too, that a portion of our
short-term borrowing should be converted into longer-term Issues. A
balanced budget would greatly facilitate such an operation.
Every principle of sound governmental management and wise economic
policy call for the prompt balancing of the Federal budget. This allimportant objective is definitely within reach, and more determined effort
will bring us to the goal we have been striving to reach in the face of
unparalleled difficulties.
One of the most helpful contributions which the Congress and this Administration could give to the next Administration would be to enable them
to start with the Federal budget in balance and the Federal finances in
order.
The White House, Jan. 17 1933.
(Signed) HERBERT HOOVER.

Secretary of Treasury Mills Declares Manufacturers'
Sales Tax Most Promising Source of New Revenue
To Balance Budget—Believes Retirement of Government From Money Market Would Have Stimulating Effect on Capital Market.
In a nation wide radio address on Jan. 16, Secretary of
the Treasury Mills discussed the Government's finances, and
in speaking in support of a manufacturers' sales tax, declared that without such a tax "it will be extremely difficult
to balance the budget, since the field ornew taxes has been




423

pretty well exhausted by the Revenue Act of 1932." In his
radio message, broadcast from Washington, Secretary Mills
said:
When I appeared before the Ways and Means Committee on Dec. 14,
when the so-called beer bill was under consideration, I pointed out that
the beer bill alone, yielding. say. $125,000,000. or even coupled with
the gasoline tax, yielding another $137.000.000, could not be expected
to produce the necessary revenue—in fact, they would only product about
one-half—but that combined with a general manufacturers' excise tax
they would furnish a base of taxation sufficiently broad to give adequate
assurance of a balanced budget.

In his speech this week Secretary Mills declared the
manufacturers' sales tax to be "the most promising source of
new revenue that we can turn to at this time to assure the
safeguarding of the public credit. But, as far as I am concerned, I would be glad to consider with an open mind any
other forms of taxation that might be suggested to bring our
budget into balance." The Secretary in outlining the
Government's finances said:
The situation thus may be summarized by saying that, exclusive of
public debt items, our Federal budget may be brought into balance in the
next fiscal year by reducing expenditures $500,000.000 and by providing
$500,000.000 of new money. But this does not afford provision for sinking
fund obligations, and it presupposes that no new obligations of any kind
will be incurred.

He further stated:
I ... think the time has now come to effect the necessary economics
and to make available the necessary revenues to put the Government's
finances in order and the Government credit on an unassailable basis.
I believe that such a step would have a most wholesome effect on our
National economy, and that the retirement of the Federal Government
from the money market as a constant seeker for new funds would have
a stimulating effect on the capital market, to which we must look for
the Initial impulse toward recovery.

In full the address of Secretary Mills follows:
I have been asked to speak to you this evening on the subject of Federal
finances. This sounds formidable. As a matter of fact, however, our
fiscal problems can be simply stated and readily understood. Were it
not for the political factors, even their solution would be comparatively
simple. They become complicated only when dealt with in terms of
accounting verbiage, or if we lose ourselves in a maze of unnecessary
details. While the carrying out of determined policies does require technical skill and detailed application, a few essential facts and a broad outline
of our present financial situation are all that are necessary in order to
enable us to grasp the character of the problem that confronts us and to
make the necessary decisions.
Total Expenditures This Year.
Our total expenditures for this fiscal year which ends June 30 next will
aggregate 33,771.000,000, exclusive of public debt retirements. These
expenditures will be devoted to the following purposes: $695,000.000
are required for interest on the public debt; $134,000,000 represent excess
of postal expenditures over receipts; $87,000,000 customs drawbacks and
internal revenue refunds; $21,000,000 payments to the civil service retirement fund, and $157,000,000 on trust fund account, such as the Government life insurance fund, trust funds for the benefit of Indian tribes,
expenditures of the District of Columbia Government,
or a total of
$1.094,000,000 of unavoidable obligations.
We shall expend about $630,000,000 for National defense—an amount
which, until greater progress is made in international disarmament, cannot
be safely reduced; about $920,000,000 on our veterans (both exclusive of
construction items), and about $600,000,000 on public works in completion
of the progihm already embarked on, making a total for these purposes
of $2,150,000,000.
This leaves about $500,000,000 for the ordinary running expenses of
the Government, including the legislative and judicial branches, fiscal
administration and control of banking and currency, foreign relations,
conservation, education, promotion of the public health, Indian affairs,
aids to agriculture, labor, aviation and industry.
In other words, if we exclude the unavoidable obligations such as public
debt expenditures, and exclude the army, navy and veterans, the ordinary
expenses of the Federal Government are approximately $300,000.000.
I stress this point because of the misleading picture that has been painted
of an immense and costly bureaucracy and of the vast savings to be effected through a reorganization of the Federal Government. Such reorganization is desirable in the interest of greater efficiency and greater
economy, but substantial relief to the taxpayer must be sought elsewhere.
The President in his budget message has indicated how and where
economies can be effected.
The 1934 budget, as supplemented, contemplates expenditures. exclusive of public debt retirements, of $3,233,000,000 for the fiscal year
1934, after all reductions proposed by the President, as compared with
$3,771,000,000 for the present fiscal year, or a saving of $538,000,000.
This would be accomplished in the main by curtailing expenditures
for public works by about $260,000,000: by amending veterans' legislation
to do away with certain unjustifiable payments resulting in a reduction
of $127,000,000; by the application of the strictest economy in the various
departments and bureaus of the Government, and a further reduction in
salaries of 357,000.000.
Reducing the cost of Government by over half a billion dollars, following the substantial savings already effected this year, would constitute
a real and fruitful achievement. It is the first essential step toward bringing
the budget into balance and laying a foundation for ultimate relief to
the taxpayer.
I know of no reason why the country should not get the benefit of these
reductions in expenditures. I am not talking of a vague and theoretical
program. Every one of the economies that go to make up this saving of
over half a billion dollars is set out in detail in the budget message. It
requires but the affirmative vote of the Congress to make these economies
effective, and both parties are pledged to drastic economies and to a balanced
budget. The time to make good these pledges is now. The need Is
obvious, i he plan is there. There is no excuse for further delay.
But this is only part of the story. Even if current expenditures are
reduced to $3,233,000,000, the budget will not be in balance. The total
receipts, exclusive of foreign debt payments, which recent events have
made a highly uncertain item, are estimated at $2,620,000,000, leaving a
gap of 3613,000,000 which will have to be bridged by increased taxation.
Assuming that we shall collect something on foreign debt account.
we need, roughly speaking, a half billion dollars of additional receipts.

Financial Chronicle

424

Situation Summarized—Sales Tax Advocate,.
The situation thus may be summarized by saying that, exclusive of
public debt items, our Federal budget may be brought into balance in
the next fiscal year by reducing expenditures half a billion dollars and by
providing half a billion dollars of new money. But this does not afford
provision for sinking fund obligations, and it presupposes that no new
obligations of any kind will be incurred.
The savings, as I have said, are set out in detail in the budget message.
When I appeared before the Ways and Means Committee on Dec. 14,
when the so-called beer bill was under consideration, I pointed out that
the beer bill alone, yielding say $125,000,000, or even coupled with the
gasoline tax, yielding another $137,000.000, could not be expected to
produce the necessary revenue—in fact, they wouid only produce about
one half—but that combined with a general manufacturers' excise tax they
would furnish a base of taxation sufficiently broad to give adequate as
surance of a balanced budget.
Without the manufacturers' excise tax it will be extremely difficult
to balance the budget, since the field of new taxes has been well exhausted
by the Revenue Act of 1932.
It should not be forgotten that we adopted income tax rates that run
as high as 63%, which is an extraordinarily high peace-time rate, and an
inheritance tax law with rates running as high as 45%; that we have imposed sales taxes on a great variety of articles, including lubricating oils,
brewers' wort, automobiles, trucks, parts and accessories, tires, gasoline,
candy, chewing gum, soft drinks, jewelry, toilet preparations, furs, electricity, radios, mechanical refrigerators, sporting goods and cameras,
and that, in addition, new and increased stamp taxes were imposed; taxes
on admissions were extended; a tax on telephones, telegraph, cable and
radio messages, checks, safety deposit boxes, transportation of oil by pipe
line, and the use of boats were adopted.
Many of these taxes are difficult of administration and not particularly
productive. Some are inequitable and unjustifiable in their present
form. The adoption of a general manufacturers' excise tax at a comparatively low rate would permit the elimination of a number of them.
There was a time when I did not favor a manufacturers' excise tax.
But at a time when our normal sources of revenue from excises and customs, supplemented by income and inheritance taxes imposed at war-time
rates on not more than 2,500,000 people out of a nation of 120.000,000 are
inadequate to supply the necessary revenue, the objections ordinarily
urged against the manufacturers' excise tax do not seem to me to remain
valid.
It appears preferable to a great variety of discriminatory sales taxes,
which are just as much consumption taxes as a manufacturers' excise tax.
It would be levied at a low rate and imposed on such a broad base as not
to be truly burdensome to any class of taxpayers.
It is not a novel form of taxation, but one which has given satisfaction
in Canada, where conditions are not fundamentally different from ours,
and in Australia. The objections to it are theoretical rather than practical. It is the most promising source of new revenue that we can tun
to it at this time to assure the safeguarding of the public credit. But,
as far as I am concerned. I would be glad to consider with an open mind
any other forms of taxation that might be suggested to bring our budget
into balance.
Budget Should Be Balanced.
That the budget should be balanced Is not open to dispute. No matter
how good its credit, no government can afford to go on living beyond its
means year after year. It is demoralizing. Such a practice runs counter
to the fundamental principles that should govern the management of the
public business. It is dangerous for public servants to acquire the habit
of spending more than is currently available, for it is a habit easily acquired
and, once acquired, not easily gotten rid of short of disaster.
By June 30 next we will have closed three successive fiscal years with
very large deficits. We will have more than exhausted the reserve which
we set up in the days of plenty through the retirement of public debt from
surplus funds. No one can claim that we have been hasty in imposing new
taxes in a period of depression.
In fact, during the course of the campaign the Treasury was severely
criticized for not resorting to additional taxes at the very beginning of
the depression. I do not agree with that criticism.
Favors Retirement of Government from Money Market.
But I do think the time has now come to effect the necessary economies
and to make available the necessary revenues to put the Government's
finances in order and the Government credit on an unassailable basis.
I believe that such a step would have a most wholesome effect on our
National economy, and that the retirement of the Federal Government
from the money market as a constant seeker for new funds would have a
stimulating effect on the capital market, to which we must look for the
initial impulse toward recovery.
The example of the Federal Government cutting expenses and living
within its income would set a standard for governmental units all over
this country struggling with the inevitable consequences of a decade of
excessive borrowing and extravagant expenditures.
From the standpoint of the Treasury a balanced budget should permit
a large saving in interest charges, not only through the prevention of a
further increase in the public debt, but because it would enable the refunding on favorable terms of bonds bearing a high rate of interest, and
which by October 1933 will be callable in an amount not far from $7,000,000 000. A lower interest charge on such a large volume of Government
securities would affect long-time interest rates. Lower rates and increased bond prices would stimulate the capital market and create one of
the conditions essential to business recovery. The goal is so definitely
possible of attainment, and the results will be so beneficial In many directions, that one cannot help but be impatient at the difficulties and delays,
and even more impatient at the uncertainty.
May I add one more word? I have been discussing a budget balanced
in the sense that current revenues will be adequate to cover current expenditures. Even so, the budget would not be balanced in the strict sense
of the word, since no provision would have been made for the $440,000,000
due the sinking fund. This is unsatisfactory, but must be tolerated
under present conditions.
It would be intolerable, however, if on top of our failure to meet our
sinking fund requirements we should resort to such a bookkeeping device
as withdrawing certain items of expenditure from the ordinary budget and
setting them up in the form of a special budget to be covered by borrowings.
Such program has been discussed. It has been suggested that public
building expenditures, for instance, should be paid for not from current
revenue but by borrowing, on the theory that they constitute more or less
permanent improvements that can be amortized over a period of years.
It is said that business corporations capitalize improvements of this
character.
But there is this great difference between business corporations and
the Government. Capital improvements by business corporations are
productive in character, and are intended to produce enoughlrevenue to




Ian. 21 1933

pay for theindebtedness over a given period of years Generally speaking,
this is not true of capital improvements made by the Government.
With very few exceptions these new Government buildings represent
liabilities rather than assets. They require additional funds for repairs
and upkeep. The claim that has been so frequently made that the savings
In rental would be enough to cover fixed charges, running expenses, repairs
and depreciation will not bear examination. Under the present building
program, of the buildings completed up to Jan. 1 last, replacing leased
quarters, we are spending on running expenses alone $1,130,000,as compared
with the rental for accommodations previously leased of $475,000.
Let me illustrate. In the town of X, let us say, we are paying $2,400
to rent the necessary accommodations for a postoffice. The Government
erects a $100,000 building. Without figuring the cost of land and interest
on the investment, the maintenance cost of that building amounts, together with depreciation, to $6,300 per annum. In other words, whatever
the other charges may be in dollars and cents, the new postoffice in this
particular town costs the United States Government $3,900 more a year
than the rented quarters did. To say that we should capitalize this new
liability and issue bonds against it because it is analogous to what a manufacturing corporation does when it erects a new building, or a railroad
when it builds a new connecting link, which are expected to pay for themselves, is to say the least illogical.
Moreover, it should be pointed out that in budgeting for Federal construction expenditures we are dealing primarily with relatively continuous
operations and not with isolated and non-recurring expenditures. This
is more than a question of mere accounting. Inevitably, it has an important bearing upon the effective control of expenditures which clearly
is one of the most pressing issues in the field of public finance to-day.
Ever since the war, practically every State, every municipality, every
county, every school district and every other political subdivision in the
United States has listened to the alluring plea that they were justified
in capitalizing so-called permanent improvements, with a result that with
a few shining examples of wise financial managements such as are afforded
by the States of Massachusetts and Connecticut, for instance, our States
and municipalities have piled up a mountain of additional debt in the
course of the last 12 years amounting to $10,000,000,000, under which
the unfortunate taxpayer is struggling to-day, and which in many cases
has brought the communities to the verge of bankruptcy.
In the face of that record the Federal Government is now being urged
to abandon the policy which it has followed ever since the birth of our
Government, and instead of doing what we have always done in the past—
reduce in peace-time the debt piled up by the wars in which we have been
compelled to engage—to adopt the practice of superimposing an unjustifiable peace-time debt on an enormous war debt; to remove all of the safeguards against extravagance which the "pay-as-you-go" policy affords,
and to avoid our plain duty and the dictates of common sense by resorting
to a tricky accounting device, the ruinous consequences of which are visible
throughout the United States to-day.

All Tax Bills Tabled in House—Committee Votes
Against All Proposals at This Session.
Democrats overrode Republicans on the House Ways and
Means Committee yesterday (Jan. 20) and voted against
all proposals for passing tax legislation at the short session.
Associated Press advices from Washington (Jan. 20) published in the New York "Evening Post" went on to say:
Representative Hawley of Oregon, ranking Republican on the committee, moved consideration of last year's administration tax bill, which
included a general sales tax, but he was defeated by a Democratic motion
to table all tax matters. It carried, on a strictly party vote, 14 to 10.
Lost on this same motion was a proposal by Representative Bacharach,
New Jersey Republican, to continue the gasoline tax another year and
boost it from one to two cents.
Merits Not Discussed.
Chairman Collier said the committee did not discuss the merits of the
tax plans, but simply reaffirmed the previous decision of the Democratic
members not to prepare a general tax bill at this session.
The issue is thus left to the unavoidable special session of the new
Congress.
Representative Rainey, the Democratic floor leader, said,"We don't
know what we need to balance the budget until the March 15 income tax
payments come in, nor do we know what economies may be effected this
session.
"It would be unthinkable to impose additional taxes in advance of more
exact information.
"As soon as we know officially whether there Is to be an extra session we
can determine what to do regarding taxes, including such questions as the
gasoline tax."
Budget Delay Assailed.
Representative Treadway (Rep., Mass.) criticized the Democratic
leadership for not immediately tackling the budget problem.
The committee referred to a subcommittee headed by Representative
Doughton (Dem., N. C.) the bill for upward adjustment of ad valorem
tariff duties against shipments from foreign countries having depreciated
currencies. This subcommittee plans hearings next week.
It referred to another subcommittee led by Vinson, Kentucky Democrat,
the Cellar bill authorizing the alien property custodian to present tax
refunding claims to the commissioner of internal revenue within six months
after the return of the property held by the custodian or, if it should be a
later date, within six months after passage of the bill.

President Hoover's Message to Congress Vetoing
Philippine Independence Bill.
The veto by President Hoover on Jan. 13 of the bill proposing to give the Philippine Islands political independence
in 10 years was noted in our issue of Jan. 14, page 267.
Following the President's message to Congress, the House,
as we indicated in our item of a week ago, overrode the veto.
The action of the Senate this week is referred to in another
item in this issue of our paper. In his veto message, which
we quoted in part last week, President Hoover stated that
"our responsibility to the Philippine people is that in finding a method by which we consummate their aspirations we
do not project them into economic and social chaos, with the
probability of a breakdown in government. . . ."

Volume 136

Financial Chronicle

The President likewise said that "our responsibility to the
American people is that we shall see the fact of Philippine
separation accomplished without endangering ourselves in
military action hereafter to maintain internal order or to
protect the Philippines from encroachment by others, and
above all that this shall be accomplished so as to avoid the
very grave dangers of future controversies and seeds of war
with other nations."
The President added that "we have a responsibility to the
world having undertaken to develop and perfect freedom for
these people we shall not by our course project more chaos
into a world already sorely beset by instability. The present
bill fails to fulfil these responsibilities. It invites all these
dangers."
The President observed that "during the period of intermediate government prior to complete independence, not
alone the internal and external political relations of the
Philippine people must be adjusted, but they must adjust
their economic life to the complete abrogation of the present
free-trade association with the United States. The period
for such adjustment in this act is too short, too violent."
The President further stated:
To grasp these implications, we must consider what is proposed at the
end of the 10-year period. The free entry of Philippine products into the
United States, that is 80% of the foreign market, is to cease at that time,
or at best be subject to indefinite negotiations. Unfortunately for these
people their economic life to-day, and for many years to come, is absolutely
dependent upon their favored trade with the United States.

In stating that "many of their industries cannot compete
with the lower standard of living and costs in other tropical
and subtropical countries, except by virtue of their favored
entrance to our markets," the President added in part:
Consequently, capital invested in large industries, the security for mortgages held by their banks, their insurance companies, their other institutions must be greatly reduced, the financial system of the islands endangered,
a flight of capital must ensue, the ability of the people to pay taxes undermined, the government revenues diminished, and its ability to maintain
its
obligations and to maintain public order will be weakened. The
government already has difficulty balancing its budget and this difficulty will
be
thus Intensified.

The President's message follows in full:
To the House of Representatives:
I return, herewith, without my approval. H. B. 7233, entitled
"An act
to enable the people of the Philippine Islands to adopt a constitution
and
form a government for the Philippine Islands, to provide for the independence of the same, and for other purposes."
The Philippine people have to-day as great a substance of
ordered liberty
and human freedom as any people in the world. They lack the form
of
separate nationality, which is indeed their rightful spiritual
aspiration.
They have been encouraged in this aspiration by every President
of the
United States during the years of our association with the
Philippines and
by declarations of the Congress.
But in securing this spiritual boon to the 13,000,000 people
in these
Islands the United States has a triple responsibility. That
is responsibility
to the Philippine peopie, responsibiiity to the American people
and responsibility to the world at large.
Our responsibility to the Philippine people is, that
in finding a method
by which we consummate their aspiration we do not project
them into
economic and social chaos, with the probability
of break-down in government, with its consequences in degeneration o• a rising
liberty which has
been so carefully nurtured by the United States at the
cost of thousands of
American lives and hundreds of millions of money.
Our responsibility to the American people is that
we shall see the fact of
Philippine separation accomplished without endangering
ourselves in military action hereafter to maintain Internal order
or to protect the Philippines from encroachment by others, and above
all that this shall be accomplished so as to avoid the very grave dangers of
future controversies and
seeds of war with other nations.
We have a responsibility to the world that, having
undertaken to develop
and perfect freedom for these people, we shall not by our
course project
more choas into a world already sorely beset by
instability. The present
bill falls to fulfil these responsibilities. It invites
all these dangers. It
does not fulfill the idealism with which this task in human
liberation was
undertaken.
Summary of the Bill.
The Bill provides for a constitution of a specified character to
be framed
by a Philippine convention for submission to the Filipino people, and for
the incidental determination as to whether or not they desire independence
.
In the event of a favorable vote, and after probably about two years an
Intermediate government of the Philippine Islands Ls established,
the office
of Governor General is abolished, and all important civil authority of the
United States Is effectively abrogated, exci pt for certain inconsequenti
al
powers which are vested in a High Commissioner. The United States
retains also during the approximately 10-year period of Intermediate
government the powers of limited control over legislation—by the President
—of judicial review in certain cases (by the United States Supreme Court),
of supervision of foreign affairs and military occupation. Immigration is
regulated, and during the same period certain duty-free imports into the
United States are curtailed to specified quotas. The intermediate government Is to levy export taxes, to increase from an initial charge of 5% in the
sixth year of that government to 25% in the tenth year. Complete independence is automatically established in the 11th year after the inauguration of the intermediate government, and all free trade between the Philippine Islands and the United States Is then terminated, unless some other
understanding is arrived at by a trade conference. The United States
retains, after the establishment of independence, the right to maintain
military and naval stations in the Philippine Islands, and the bill calls for
an effort on the part of the United States to safeguard the future of the
Islands by securing international neutralization.
I am returning this bill because I consider that It is subject to the most
serious objections. In the statement which follows I do not enter upon
zis.any secondary criticisms, but confine myself to the broader aspects of the
subject, which, in any event, must dominate conclusions as to rightful
action.




425

Economic and Social Consequences.
During the period of intermediate government prior to complete
Independence, not alone the internal and external political
relations of the
Philippine people must be adjusted, but they must adjust their
economic
life to the complete abrogation of the present free-trade
association with
the United States. The period for such adjustment in this act
is too short.
too violent. These adjustments Nth; not be confined to the period
after
Independence. On the contrary, these reactions will begin
much before
that, for people do not wait to adjust their affairs until
after a known
certainty. They discount and prepare in advance.
To grasp these implications, we must consider what is proposed
at the
end of the 10-year period. The free entry of Philippine products
into the
United States—that is 80% of their foreign market—is to cease
at that
time, or at best be subject to an indefinite negotiation. Unfortunately
for these people, their economic life to-day, and for many years to come,
Is
absolutely dependent upon their favored trade with the United States.
Many of their industries cannot compete with the lower standards of living
and costs in other tropical and subtropical countries, except by virtue of
their favored entrance to our markets. Lands now employed in these
products must be abandoned or alternatively all real wages and standards
of living and all land values must be reduced to the level of other competing
countries.
Consequently, capital invested In large industries, the security for
mortgages held by their banks, their insurance companies, their other
institutions, must be greatly reduced; the financial system of the islands
endangered, a flight of capital must ensue; the ability of the people to pay
taxes undermined, the government revenues diminished, and its ability
to maintain its obligations and to maintain public order will be weakened.
The government already has difficulty balancing its budget, and this
difficulty will be thus intensified. Under these circumstances they
must
inevitably and soon greatly diminish a large part of their generous support
to schools, health and roads.
The American Government will be faced after projection of these events
with years of military occupation among a degenerating economic and
social life, with all its governmental difficulties.
A large part of the motivation for the passage of this bill is presumed
relief to certain American agricultural industries from competition by
Philippine products. We are trustees for these people and we must not let
our selfish interest dominate that trust. However, from our agricultural
point of view, during the first period of presumably two years it gives no
protection of any kind. During the following five years it gives no effective
protection because the amount of competitive commodities admitted into
the United States duty free is in sugar 50% larger than that of 1928; vegetable oils 25% larger. In any event, the sugar benefits Inure more largely
to foreign producers than to our own farmers. If we are to predicate the
fate of 13,000.000 people upon this motive, we should at least not mislead
our farmers about it. If we are to base our action upon economic consideration—and I do not nelgect its importance—then also we should give regard
to our farmers, workers and business men, whose livelihood, particularly
upon the Pacific Coast, will be largely destroyed by lack of positive provisions for reciprocal trade after independence upon which they can predicate
their future.
Responsibility Without Authority.
The bill weakens our civil authority during the period of intermediate
government to a point of practical impotence. The powers which the High
Commissioner can exercise on his own initiative are unimportant, and those
which can be delegated to him by the President over legislation are doubtful
and indirect. During this period, however, the American flag will be flying and our army will be in occupation. Our Government, with inadequate
civil means for exercising its sovereign authority to control the situation,
but with continued moral responsibility to maintain stable government.
will datiy, during those years, be faced with the likelihood of having to
employ military measures to maintain order in a degenerating social and
economic situation, or alternately to expend large sums from our taxpayers
in supporting a constantly enfeebled government.
Not alone do these difficulties arise from the intermediate situation we
create, but the non-Christian population, who are as yet bitterly opposed
to the controlling group, constituted at the last Philippine census a majority
of the combined population of nine provinces, occupying about 40% of
the total land area of the Philippine Islands. The maintenance of order
in this considerable element has presented many difficulties to us in the
past, and it Is not reasonable to assume that the intermediate government
will be as well qualified to handle the situation as the present regime for a
long time. Moreover, without real civil authority we can have no assurance
that the intermediate government may not find itself in difficulties with
citizens of other nationalities which may involve the United States. Such
responsibility in these situations, without adequate authority, can lead only
to disaster.
Inability to Provide Military Forces for Preservation of Internal Order or
External Defense.
The income of the Philippine Government has never In the past been
sufficient to meet, In addition to other expenditures, the cost of supporting
even the Filipino Scouts, much less an army or navy. The United States
expends to-day upon the native and American military forces, for the protection and assurance of internal order and for the maintenance of the
minimum requirements of external defense, a sum amounting to approximately 28% of the entire revenues of the Philippine Government. If the
naval expenditures of the United States in the Philippine Islands are
included, this figure is increased to 36%; and it must be remarked that both
figures relate to the expenses of the forces actually in the islands and do
not include the very pertinent potential protection
afforded by the entire
military and naval powers of the United States.
It can scarcely be expected that the Philippine
Islands will be able to
increase their revenues by 36 or even 28% to
provide the force necessary
for maintaining internal order and the minimum
of external defense, even
were no internal economic degeneration anticipated.
They could only do
so at a sacrifice of a large part of their educational
and public improvements.
Present External Dangers to Independence.
The Philippines include, in terms of comparison
with their neighboring
Oriental countries, large areas of undeveloped
resources. The pressures of
those immense neighbor populations for peaceful
infiltration or forcible
entry into this area are most potent. Many of
these races are more devoted
to commercial activities than the population of the
islands, and the Infiltration is constant and fraught with friction. Nor
has the spirit of imperialism and the exploitation of peoples by other races
departed from the earth.
After the establishment of independence the
Filipino people alone will be
helpless to prevent such infiltration or invasion.
Their problem Is infinitely
different from that of Cuba or other nations in the
Western Hemisphere.
Moreover, tht, political dangers of the situation
are greatly increased by
the present political instability in the Orient.
The impact of Western ideas
upon Oriental systems of culture and government
has created a profound
ferment among this half of the population of the world.
Our own future

426

Financial Chronicle

and the future of the Filipno people, both in maintenance of peace and the
development of our own economic life and trade, are deeply involved.
To-day the picture is chaotic. It Is impossible to see what the next two
decades may bring. It is a certainty that at the end of such a period we
can see more clearly—and the Philippine people can see more clearly—
the forces which are formulating. It would be the part of common caution
upon their own behalf and both generosity and caution on our part that
final determination as to the nature of our relations should be deferred and
that both of us should take this momentous decision after a much longer
period than two years.
When the Philippine people vote within two years upon a Constitution
they take the irrevocable step of final independence. By maintenance of
our military occupation and our national guardianship the United States
must and will give protection against external pressure during the period
of intermediate government. The bill makes no effective provision for the
maintenance of their independence thereafter from outside pressures, except
a promise of effort on our part toward neutralization.
We have the option to continue maintenance of military and naval bases.
Other nations are unlikely to become parties to neutralization if we continue
such bases, and neutralization is a feeble assurance of independence in any
event unless we guarantee it. That, again, is the perpetual engagement of
the United States tri their affairs. But with the impression that these ideas
in the bill convey it is likely that the Philippine people would vote in two
years in the belief that independence is thereby attained and with the more
or less general belief that we will indefinitely engage our power and our own
future welfare in the altruistic mission of preserving their independence from
international forces against which they are incapable of defending themselves.
Therefore, before any plebiscite is held we should honestly and plainly
declare our intentions. This bill does not do this. In discharge of the
moral responsibilities of our country we have no right to force an irrevocable
decision on their part to be taken two years hence at a moment in history
when the outlook in the world and of their surroundings is at best unfavorable to their permanent independence.
Conclusions.
If the American people consider that they have discharged their responhave carried out the altruistic mission
people,
Philippine
the
to
sibilities
which we undertook, if we have no further national stake in the islands, if
the Philippine people are now prepared for self-government, if they can
maintain order and their institutions, if they can now defend their independence, we should say so frankly on both sides. I bold that this is not
the case. Informed persons on neither side have made such declarations
without many reservations. Nor can these conditions be solved by the
evasions and proposals of this bill without national dishonor.
In my view we must undertake further steps toward the liberation of the
Philippine Islands, but they should be based upon a plebiscite to be taken
15 or 20 years hence. On such an occasion there would be a full impress
upon the Filipinos of the consequences of their act instead of its confusion
as a side issue to the substitution of another intermediate form of selfgovernment offering no vital improvement in their liberties to that they now
possess. They should then have freedom to form their own Constitution
and government, both in the light of experience and the forces moving at
that time.
In the meantime we should develop steadily through an expansion of
the organic act a larger importance to their own officials by extension of
authority to Cabinet government, with a full reserve of powers to our
representatives. Immigration should be restricted at once. We should
co-operate with them to bring about their economic independence before
the plebiscite by very gradual reduction of their free imports. We should,
prior to such plebiscite, or any sooner date that the Philippine people
propose, fix a mutual preference in trade similar to and on a wider scale
than that with Cuba. The United States should plainly announce prior to
the time of this plebiscite whether (a) it will make absolute and complete
withdrawal from all military and naval bases, and from every moral or
other commitment to maintain their independence, or (b) the conditions
as to authority and rights within the islands under which we will continue
that protection.
These final steps cannot be properly determined now by either the
Philippine people or ourselves.
We are here dealing with one of the most precious rights of man—national
independence interpreted as separate nationality. It is the national independence of 13,000,000 human beings. We have here a specific duty.
The ideals under which we undertook this responsibility, our own national
instincts and our institutions which we have implanted on these islands
breathe with these desires. It is a goal not to be reached by yielding to
selfish interests, to resentments or to abstractions, but with full recognition
of our responsibilities and all their implications and all the forces which
would destroy the boon we seek to confer and the dangers to our own freedom from entanglements which our actions may bring.
Neither our successors nor history will discharge us of responsibility for
actions which diminish the liberty we seek to confer nor for dangers which
we create for ourselves as a consequence of our acts. This legislation puts
both our people and the Philippine people not on the road to liberty and
safety, which we desire, but on the path leading to new and enlarged dangers
to liberty and freedom itself.
HERBERT HOOVER.
The White House, Jan. 13 1933.

Brief History of Philippines Under United States Rule
—Ceded by Spain in 1898, President Taft Was
First Governor General.
Milestones in the political history of the Philippines since
the islands were ceded to the United States were given as
follows in a Washington despatch Jan. 13 to the New
York "Herald Tribune":
1898—End of Spanish colonial government and beginning of military
government under the United States. The treaty ceding the Philippines
gave Congress power to determine the civil rights and political status of the
native inhabitants but gave no guaranty of eventual independence.
1899—President McKinley appointed the Schurman Commission to
advise on the reorganization of municipalities. Insurrectionary movements
were under way and lasted until 1902.
1900—President McKinley appointed the first Philippine commission
under William H. Taft for drafting Philippine laws.
1901—The military government ended except in certain specified regions,
and Taft became Civil Governor.
1902—Congress passed the organic act under which the Islands were
governed until 1916, with a popular legislative chamber and a Governor
General under the Secretary of War.
1907—The first session of the Philippine Legislative was convened
I909—The Payne Bill granted a measure of free trade between the United
States and the Islands. W. Cameron Forbes became Governor General.




Jan. 21 1933

1913-The Underwood tariffintroduced complete free trade with the United
States. Governor General Harrison, promised that "every step we take
will be taken with the view to the ultimate independence of the islands and
as a preparation for that independence."
1916—Enactment of the Jones Bill created the organic law under which the
islands are still governed with a Senate and House popularly elected, and
an American Governor General. The Jones Act stated in its preamble that
it was the Intention of the United States to give the Philippines independence
as soon as a stable government was established. An amendment granting
independence in four years was defeated in the House.
1921—The Wood-Forbes Commission investigated the Philippines and
reported that immediate granting of independence would be premature. It
advised that the United States should not be left in the position of responsibility without authority. General Wood became Governor General and
was the centre of political storms as he sought to reform laxities attributed
to the Harrison administration.
1926—President Coolidge sent Colonel Carmi A. Thompson to make an
investigation. He recommended healing the breach between the legislative
and executive branches but postponement of absolute independence.
1928—Henry L. Stimson was appointed Governor General and new conciliation with the Filipinos was sought.
1929—Dwight F. Davis was appointed Governor General. An increasing
agitation for an independence bill got under way in Congres..
1932—Theodore Roosevelt, Jr., was appointed Governor General, Hare
Independence Bill passed the House April 4 1932 by vote of 302 to 47.
It passed the Senate with Hawes-Cutting Bill amendments on Dec. 17.
The Senate adopted the conference report on Dec. 22 and the House on
Dec. 29. The House received the President's veto to-day and overrode it
274 to 94.

Bill Granting Independence to Philippine Islands
Passed by Congress Over President Hoover's Veto—
House and Senate Override Veto.
Following the action of the House on Jan. 13 in passing,
over President Hoover's veto,the bill granting independence to
the Philippines in 10 years after the adoption of a constitution,
the U. S. Senate on Jan. 17 passed the bill over the President's veto by a vote of 66 to 26—more than the necessary
two-thirds majority. President Hoover, as we indicated
in our issue of Jan. 14, page 267, vetoed the bill on Jan. 13,
and in this issue of our paper we give the full text of the veto
message. With the presentation of the veto message to
the House on Jan. 13 that body on the same day overode the
veto by a vote of 274 to 94. As to the action of the House
on Jan. 13 the "United States Daily" said:
After an hour's debate in the House, the Speaker said the question Is
whether to pass the bill, the objections of the President notwithstanding.
and the roll call followed. The alignment on the vote was as follows:
Ayes (to pass the bill over the veto): Democrats, 191; Republicans. 82:
Farmer-Labor, 1; total, 274.
Nays (to sustain the veto): Republicans, 93; Democrats, 1; total, 94.
Pairs: 10 Republicans to sustain the veto; 14 Democrats and 6 Republicans to override the veto.

From the Washington account Jan. 13 to the New York
"Times" we take the following:
Debate on the veto was limited to one hour, at the close of which Representative Hare, Chairman of the Insular Affairs Committee and author
of the bill, said:
"The action that we contemplate will strengthen the United States in
the attitude and position it has taken toward its possession in the Orient,
it will prove conclusively that this country is not one that stops and stammers and hesitates at every whim and doctrine.
"To-day there is not an argument made here, and there is not an argument in the President's message that contradicts the statement that the
Philippine people are prepared to establish and maintain a tables government."
Representative Dyer of Missouri charged that the only "selfish" interests
in the Philippines were Americans. and the Army and Navy. He said the
Army and Navy influenced Secretaries Hurley and Adams, who in turn.
"did more to influence President Hoover's decision than any one else.'
But Representative Underhill of Massachusetts supported the veto with
a declaration that independence would result in "greater ills and more
bloodshed" than had been known in the Islands, and said the Democrats
proposed to override it because they "doubt the confidence and ability of the
next President."
Camllo Osias, one of the Philippine delegates, begged the House to override the veto for the sake of "consistency, justice and freedom."

Consideration of the question of whether the bill should
pass, notwithstanding the veto of the President, was begun
in the Senate, Jan. 14, upon a motion by Senator Robinson
(Dem.)of Arkansas, minority leader who asserted that every
objection voiced by the Chief Executive had been examined
either in committee or on the floor of the Senate. We quote
from the "United States Daily" which further reported the
Senate proceedings of Jan. 14 as follows:
The veto being a privileged matter under the Senate rules, it temporarily
displaced the Glass banking bill as the unfinished business. The debate
of the day included announcements by several Senators of their intention
to vote to override the veto and a discussion of the veto message by Senator
Vandenberg (Rep.) of Michigan, who said he would vote to sustain the
President.

From the Washington advices Jan. 14 to the New York
"Times" we quote the following:
The Senate gave itself over unexpectedly to-day to speechmaking on the
Hoover veto of the Philippines independence bill, and a vote was not yet
in sight when adjournment was taken till Monday.
In the late afternoon Senator Long, who has become the body's most persistent orator, began a new filibuster against a vote on the question of
upholding the Presidential veto, hoping thus to force Senate Democrats to
withhold a closure petition against his filibuster on the Glass banking bill.
The petition has been prepared for presentation Monday.

Volume

136

Financial Chronicle

The tangled parliamentary situation that gripped the Senate when it
recessed at 4.30 p. m., with Mr. Long in possession of the floor, is believed
to be without precedent.
In effect, one determined member,the Louisianan, with the assistance of
only Senator Thomas of Oklahoma, has blocked the upper branch for five
days and appears capable of continuing indefinitely.
Senator Long,in the privacy of the Democratic cloakroom, had attempted
this afternoon to trade his support of the Philippine bill, the veto of which
Democratic leaders hope to override, for a free hand in fighting the Glass
bill through the filibuster route.
In authoriatative quarters it was reported to-night that Democratic
eaders had not only declined his proposal but threatened to uphold the
veto of a bill in which Mr. Long's State has probably the largest stake.
The bill, with its limitation on Philippine sugar imports, was passed over
the President's veto by the House yesterday, Thus the Senate is now a
court of last resort on the bill, which it may kill or pass, with consequent
damage or advantage to sugar-producing States, of which Louisiana is one
of the greatest.

On Monday, Jan. 16, the Senate just before 6 p. m.
reached an agreement under which a vote on the Philippine
independence bill would be taken the next day. The New
York "Herald Tribune" indicating this, in a Washington
dispatch Jan. 16, added:
The agreement, which was proposed by Senator James E. Watson,
Republican leader,and then modified at the suggestion of Senator Joseph T.
Robinson, Democratic leader, and others, provides that the Senate shall
meet at 11 o'clock, that Senator Bronson Cutting, insurgent Republican,
of New Mexico, shall have such time as he desires to complete a speech he
began this afternoon, and that thereafter speechs shall be limited to 30
minutes.

In reporting the action of the Senate on Jan. 17, the
"United States Daily" said in part:
Bill Goes to Insular Legislature.
Thus, the question is now submitted for consideration of the Philippine
Legislature, which under the bill passed, must act within one year in starting independence machinery in motion. Within that time, the insular
legislative body is required to provide for a special election to choose delegates to a constitutional convention, and in so doing conduct a plebiscite
on the question of accepting independence on the basis proffered by the
United States.
The Senate action came after debate on the veto message had gone into
Its third day and after references had been made to filibustering and the
possibility of employing cloture to restrict the debates. That recourse was
avoided, however, when Senators voluntarily entered into an agreement to
limit debate after negotiations Jan. 16. The Senate convened an hour
earlier than its usual noon meeting time in order to hasten the vote which
was reached in two and one-half hours after the debate was limited to one
speech of not longer than 30 minutes for each Senator
Change in Rules Proposed.
The independence basis proposed to the Filipinos provides for complete
freedom and establishment of their own government in 10 years after their
constitution has been adopted. The sponsors of the bill, Senators Hawes
(Dem.) of Missouri, and Cutting (Rep.) of New Mexico, have explained
that this means establishment of Commonwealth of the Philippines in
approximately 12 years from this time,if the Filipinos vote to proceed under
the formula of the present bill.
As the vote neared in the Senate, numerous Senators spoke in favor of
overriding the veto of the President. They were in agreement that the bill
was not perfect, but that conditions were growing more difficult for independence.
Veto Message Analyzed.
President Hoover's veto message was analyzed by several Senators, as
were the letters made public by the President from the Secretary of State.
Henry L. Samson; the Secretary of War, Patrick J. Hurley; the Secretary
of Commerce, Roy D. Chapin, and the Secretary of Agriculture. Arthur M.
Hyde, to show that the Senate already had considered all of the questions
projected into the difference of opinion between Congress and the Chief
Executive.
Attitude of Insular House.
In concluding the debate, Senator Bingham (Rep.) of Connecticut,
Chairman of the Committee on Territories and Insular Affairs, called to
the attention of the Senate dispatches from Manila to the effect that the
lower house of the Philippine Legislature had voted to reject the bill upon
which the Senate was about to vote.
The Connecticut Senator, whose committee handled the bill, announced
that "it was only a portion of the lower house" that had voted against the
bill. He asserted that it was "by no means representative" of Filipino
thought or desires, and that Congress nor the American people should not
regard it as definitely showing a determination on the part of the Filipinos
to refuse independence under the proffered Plan.
Senator Cutting (Dem.),of New Mexico, one of the sponsors of the freedom legislation in the Senate, told the Senate that if President Hoover had
made public the statements of his four Cabinet Members in advance of,or
simulatenously with the veto message, it "might have had some effect."
He suggested that if the statements were the advice upon which the President had acted, they should have been transmitted to Congress with the
veto.
Asks for Statements of Cabinet Members.
The Senator anlayzed the arguments offered by the Secretary of State,the
Secretary of Commerce, the Secretary of Agriculture, and the Secretary of
War to show, he said, that they were inconsistent. He asserted that these
statements presented certain arguments and contingencies in a different
light than they were employed by the President in his veto message.
"It cannot be argued, for example," said Senator Cutting, "that the bill
gives the United States a responsiblity with no attendant authority. American rights are amply safeguarded.
"As for international dangers: If they are to exist in the future, they
exist now. We are powerless, under the Washington Treaty of 1921, to
increase our fortifications in the Philippines.
Declares Prestige Will Not Suffer.
"As for our prestige in the Orient: lean not agree that American prestige
In the Orient will suffer by our withdrawal from the Philippines. On the
contrary, I believe American prestige will be enhanced, not only in the
Orient, but throughout the world, because it will show that America is one
nation which keeps its word."
Senator Cutting declared the bill was "imperfect, highly imperfect."
"But I submit," he added, "that any other bill that reaches the stage of
final passage will be just as imperfect. The Filipinos know that; they are
aware that the bill means they will have to endure economic hardships, and
they know the trials must be met. Yet, they are willing to face those hard-




427

ships, andif they are no willing to attempt it, they have the right to reject
the program."
The President's veto was viewed by Senator Borah (Rep.) of Idaho. and
Chairman of the Senate Committee on Foreign Relations, as presenting
the question whether there is ever to be independence accorded the Filipinos.
He asserted it was not to be decided whether the present bill should be
passed over the veto of the Chief Executive, but whether this Nation ever
was to fulfill its obligation.
"The object of the veto impresses me as being 'no independence," said
Senator Borah. "I feel that I am to vote on the question whether I am in
favor of independence or against independence.
"There is never going to be an ideal time. It can never be a better time
than now. If we are going to survey the situation, particularly the Oriental
situation, we will never grant independence. . . The President says
he is unableqo see what the next two decades will bring in the Orient.
That is true. Nor will he be able to see what the next two decades will bring
after those which he has mentioned have passed into history.
Says Filipinos Are Part of Orient.
"Those Filipinos are a part of thd teeming millions of the Orient, an
element in that phase of the world's life. They are going to have to take
their place among those millions who are going to change things beyond what
any one can now prophesy."
The Idaho Senator declared that by publication of the statements of four
of the Cabinet members, the President had opened the way for any Senator
to discuss the questions involved. He added that he did not agree with
their arguments, nor with the President's views, and he felt that the bill
Itself contained many provisions which should not have been written into it.
"But," he continued, "we have an obligation to fulfill and I think we
should not shirk it. It will come like an electric shock to the nations of the
earth if we grant that independence about which we have so long preached.
By that act we will force the nations to say that the great republic still
adheres to the principles of its traditions."
Senator Lewis (Dem.) of Illinois asserted that the United States should
get out of the Orient because of the danger in which the Nation is placed by
having holdings there. He contended that Russia, China and Japan all
have grievances against this country and that they would seize the opportunity to take the Philippines. This country should not further imperil
Itself by retaining the Islands, he said.
Senator Pittman (Dem.) of Nevada stated that if the legislation were
defeated it would be defeated by the "imperialists," who, he said, have
controlled its destiny for many years. He pointed out that the problem
of the Philippines would not be solved by the passage of the bill. The
"Imperialists," he continued, will "instill in the minds of the Filipinos that
they can get something better, can get almost immediate independence."
Senator Hatfield (Rep.) of West Virginia asserted that passage of the
measure would serve notice to the world that this country has no territorial
designs. He said we should not continue to govern a people who resent our
protecting arm.
The vote to override the President's veto of the Philippine independence
bill follows:
). To override the veto,66:
Republicans, 20: Bingham, Blaine, Borah, Capper, Couzens, Cutting,
Frazier, Hatfield, Howell, Johnson, La Follette, McNary, Metcalf, Norbeck, Norris, Nye, Oddie, Robinson (Ind.), Shortridge, Steiwer.
Democrats, 45: Ashurst, Bailey, Bankhead, Barkley, Black, Bretton,
Broussard, Bulkley, Bulow, Byrnes, Caraway, Connally, Coolidge, Coatigan, Dill, Fletcher, George, Glass, Gore, Harrison, Hawes, Hayden, Hull,
Kendrick, Lewis, Logan, Long, McGill, McKellar, Neely, Pittman,
Reynolds, Robinson (Ark.), Russell, Sheppard, Smith, Stephens, Swanson,
Thomas (Okla.), Trammell, Tydings, Wagner, Walsh (Mass.), Walsh
(Mont.), Wheeler.
Farmer-Labor, 1: Shipstead.
To sustain the veto, 26:
Republicans, 25: Austin, Barbour, Dale, Davis, Dickinson, Fess, Glenn,
Goldsborough, Grammer, Hale, Hastings, Hebert, Kean, Keys, Moses,
Patterson, Reed, Schell, Schuyler, Smoot, Townsend, Vandenberg, Walcott, Watson, White.
Democrats, 1: Copeland.
The pairs were: To override the veto, Thomas (Idaho) and Brookhart;
to sustain the veto, Carey.
Senator King of Utah, who has declared for immediate independence,
was the only Senator unrecorded.

Adverse- Reports to President Hoover on Philippine
Independence Bill by Secretaries of State, Commerce, Agriculture, and War—Secretary Stimson
Fears Outcome of Freedom in Far East—Messrs,
Hurley, Chapin and Hyde Join President, Basing
Protest on Social and Economic Grounds.
On Jan. 15, the White House, advised by party leaders
in the Senate of barely enough votes in that body to sustain
the Presidential veto of the Philippines independence bill,
made public adverse reports on the measure from the Secretaries of State, War, Commerce, and Agriculture.
These reports, said the Washington correspondent of the
New York "Journal of Commerce", on which President
Hoover based his disapproval of the measure, were set forth
by the Administration in a last desperate effort to avert
freedom7of the Islands. At the time of the issuance of the
reports the Senate had not yet passed the bill over the
President's veto, that action having been taken on Jan. 17.
From the "Journal of Commerce" we quote the following
further Washington advices Jan. 15:
The President's decision to further stress reasons why the independence
legislation should not be passed at this time was taken after Senator Watson
of Indiana. Republican floor leader of the Senate, had informed Mr. Hoover
that two or three ballots may decide the issue. Senate action is expected
to be taken to-morrow or Tuesday.
Secretary Stimson's Views Given,
Secretary Stimson's report on the independence measure reminded that
"our presence in the Philippines has already contributed to the development of a new base of political equilibrium throughout the area of the
Western Pacific and Eastern Asia."
He held that "withdrawal of our sovereignty from the Philippines and the
termination of our responsibility in and for the Islands under the present

428

Financial Chronicle

circumstances would tend profoundly to disturb that equilibrium." Even
under the best of circumstances, he said, it would inevitably have an unsettling effect in the relations to political thought of the various races or
nations in the Far East and in the relations of those races or nations among
themselves and with the rest of the world.
"Therefore, in summary," he added. "the bill, in my opinion, is open to
the following most serious objections
"In the first place, it finally and totally abandons the opportunity for
a constructive solution of the Philippine problem which would preserve for
future generations of Americans and Filipinos the benefit of this remarkable and successful experiment in co-operation between these two peoples.
"In the second place, it terminates our relationship to the Philippines in
a way which will inevitably create economic distress and provoke resentment and unrest in the Islands.
"Thirdly, it will thus tend to disturb the equilibrium of the Far East and
also to greatly damage the prestige and material interests of the United
States in that region.
"Fourthly, it will cause these evils unnecessarily and without any commensurate benefit to the agriculture interests of the United States."
In the present status of world affairs. Secretary of War Hurley declared, it would seem most desirable for both the Filipino people, as well
as for those of the United States, to continue to strive for the economic
independence of the Islands under the general governmental system established by the present organic act. He said that there are indications that
the Filipinos themselves are desirous of preventing the Philippine Islands
from becoming a ."sugar" or "one crop" State, as he added it is likely
to do if unlimited free trade with the United States is continued. He also
warned that the opportunities open to Filipinos are greater in the Islands
than in any other place in the world.
Secretaries Chapin and Hyde Protect.
Secretary of Commerce Chapin pointed out that among other probable
results might be mentioned the budgetary burden incidental to unemployment, the lowering of the standard of living and the tendency of capital
to leave the country under the conditions of economic disturbances created
by the loss of the American market. He added that Philippine sugar so
far has not been able to compete effectively in world markets with either
Cuban or Javan sugars and Is, therefore, sold entirely in the United States.
The American farmer is misled as to the protection offered by the independence measure, Secretary of Agriculture Hyde declared in his report.
The Secretary called attention to phases of the legislation as it affects American agriculture, asserting it is now that the farmer needs protection, not
several years hence when the country has generally recovered.

Secretary Stimson's report, as given in the "Times,"
follows in full:
My Dear Mr.President
You have asked me to give you my views as to the effect which the
bill (H. R. 7233) recently passed by both Houses of Congress to provide
for the independence of the Philippine Islands will have upon our foreign
relations.
Any withdrawal of American sovereignty from the Islands, even the
best and most carefully devised conditions, and with the utmost and
continuous good-will on the part of both of the governments concerned,
will necessarily be attended by hazard and uncertainty and will involve
risk to the welfare of the Filipinos. on one side, and to the prestige and
future interests of the United States on the other. After a careful examination of the provisions of this bill. I am convinced that it will seriously accentuate these risks and dangers and almost inevitably be followed by evils
to both peoples, which might otherwise be avoided.
For over 30 years this Government has been conducting with remarkable
success, the courageous experiment of establishing among an Oriental people
the practices of Western economic and social development and the principles of American political democracy. The Philippine Islands represent to-day an islet of growing Western development and Christian thought
surrounded by an ocean of Orientalkun. They have become a physical
and spiritual base for American influence—political, economic and social—
in the Far East. There we demonstrate before the eyes of all Far Eastern
peoples and of all governments which exercise authority or influence in
the Far East, American ideas and methods. We show, and they see,
bow we organize, maintain and administer agencies of government; agencies
for establishing and preserving order; agencies for the peaceful solution of
the problems of human contact, and agencies for regulating, safeguarding
and promoting the interests and welfare of the individuals, the groups
and the entire people who make up a commonwealth.
Warns of Unsettling Effect.
Furthermore our presence in the Philippines has already contributed
to the development of a new base of political equilibrium throughout
the
area of the Western Pacific and Eastern Asia. Withdrawal of our
sovereignty from the Philippines and the termination of our
responsibility in
and for the Islands, under the best of circumstances, would tend
profoundly
to disturb that equilibrium. Even under
the best of circumstances it
would inevitably have an unsettling effect in
the relations to political
thought of the various races, or nations, in the Far
East, and in the relations of those races or nations among themselves
and with the rest of the
world.
The wise founders of our policy in the Philippines
clearly foresaw these
contingencies. While they fully recognized that
the bold experiment in
teaching self-government, which they were conducting
in the Philippines
for the benefit of the Filipinas, might
ultimately lead to the desire on the part
of their wards for a complete severance of the
ties between the two Peeples
in the shape of absolute independence,
they consistently and repeatedly
insisted that the decision on this momentous
question should not take
place until after a full measure of education
and political and economic
experience, and until their wards by demonstrated capacity in self-government had shown themselves competent both to make a
wise decision and
to undertake the responsibilities which would be involved in such
a separation.
Theodore Roosevelt Quoted.
Thus, in 1902, President Roosevelt said:
"Our earnest effort is to help these people upward along the stony and
difficult path that leads to self-government. . . . When they have
thus shown their capacity for real freedom by their power to self-government, then, and not till then, will It be possible to decide whether they are
to exist independently of us or to be knit to us by ties of common friendship
and interest. When that day will come, it is not in human wisdom to
torten."
Mr. Taft, with his double experience of Governor-General of the
Philippine Islands and American executive as Secretary of War, similarly,
in 1904, said of the Filipinos
" . . . when they have learned the principles of successful popular
self-government from a gradually enlarged experience therein, we can discuss the question whether independence is what they desire and grant it,
or whether they prefer the retention of a closer association with the country
which, by its guidance, has unselfishly led them on to better conditions."




Jan. 21 1933

The vast difference between individual freedom and popular selfgovernment among the Filipinos, on the one hand,and a complete severance,
economic and political, between those Islands and the great nation which
had educated them, on the other, was thus clearly recognized. It was
also recognized that a decision between these two alternatives required
the fullest possible political maturity on the part of our wards, in the light
of the far-reaching responsibilities which such a decision involves.
Commonwealth Plan Envisaged.
The American founders of our Philippine policy thus clearly foresaw
the passibility that some future connection between the United States
and the Philippines, such as, for example, that which has since been realized
between the free nations which compose the British Commonwealth of Nations, might be arrived at by the voluntary action of both peoples, and that
it might have very important advantages to both nations. They wisely
left this decision open as one which might be so entered into in the ripeness
of time and experience.
The fundamental vice of the pending bill is that it completely disregards
these precautions and reverses this wise policy. It not only fails to recognize the vital distinction which the founders of our policy drew between
self-government on the one hand and complete separation from America
on the other, but it would inevitably mislead the Filipinos into making a
decision in favor of the latter in the belief that they were voting solely
for the former.
Furthermore, it proposes that they should irrevocably make this vital
decision not after the fullest possible measure of education and experience,
both political and economic, which can be given, but avowedly 10 years
before their proposed education is completed; while they are still untrained
in the executive power of their Insular Government, as well as in the choice
of their judiciary, and while they have not yet tasted the difficulties of the
probationary period in tariff legislation, which the bill proposes subsequently
to give them.
"Bait" to Islanders Asserted.
The progress of the Filipinos in self-government thus far, creditable and
remarkable as it has been, has been made under the supervision of an
American chief magistrate, who has possessed wide powers of supervision
over both the Insular and Provincial governments of the Islands, who has
had direct command of its constabulary,and who has appointed its judiciary.
It has also been made under the supervision of an American auditor, who
has possessed wide powers of fiscal control.
The bill proposes to authorize the Filipinos to enact a constitution
which will enable them to take over these powers subject to certain legal
restrictions of a not very practical administrative character. It thus offers
to the Filipino the bait of an extension in self-government, which he naturally and strongly desires. But the bill provides that when this constitution,
extending these powers, is laid before the electorate for their decision, a
vote in favor of the constitution "shall be deemed an expression of the
will of the people of the Philippine Islands in favor of Philippine independence."
Under the bill this decision would be made at once, probably within
two years after the enactment of the law. It would then be followed by
a 10-years' probationary period, under the new government and still under
American sovereignty, during the last five years of which period an American
tariff upon Philippine exports to the United States would be gradually
raised 5% each year, and afterward the full tariff duties of the American
law would be imposed as against all foreign countries. The standard of
living of the Filipino laborer to-day is said to be nearly 300% higher than
that of similar classes on the adjacent Asiatic mainland. This high standard
is based upon his present access to the American market. The effect of
such a readjustment as would be made necessary by this legislation upon
the social conditions of the Island is manifest. Their commerce, their
business, their new schools and roads, which to-day form such a striking
contrast to the conditions of their neigbors, would be disastrously affected.
Their Suffering Predicted.
The effect which would be produced upon the Filipino mind by such
a sequence of events as is provided for in this bill can be readily understood.
No one can live with the Filipinos and not realize that their desire for what
they call independence is fundamentally a desire for a fuller measure of
domestic self-government and not a desire ot cast off the protection and
advantages of their connection with the United States. No one with
such an experience can fail to anticipate that after the vote for the new
constitution has been taken and after, through the subsequent provisions
of the bill. the Filipinos have come to suffer from the economic consequences
of the 10-years' period of ostensible probation which the bill seta up, and
after they then find that they have bound themselves irrevocably to a loss
of the economic advantages which they previously enjoyed, they will be
quick to charge that they have been the victims of a shabby trick at the
hands of the Government which has assumed to be their guardian and
their benefactor.
The new probationary government will thus be inevitably subjected to
strains arising out of the economic distress In the Islands, and with its
limited effectiveness and powers may be unable adequately to control the
disorders which may ensue. Long before the time for the termination of
our responsibility through the announcement of Independence has arrived,
the American Government at Washington may be placed in a most embarrassing and difficult position in its relation to its Insular wards, and
for the preservation of the order for which it would still be responsible might
be obliged to fall back upon the only effective power which it would still
retain, namely, that of military force.
Also Blow to Our Prestige.
After the successful progress of the past 30 years; after the wisdom
and idealism, on the one side, which has been shown by the American
leaders, and after the intelligence and restraint which have been shown,
on the other side, by the Filipino pupils, such a result would be simply
catastrophic. It needs no imagination to grasp the effect which it would
have upon the moral prestige and material influence of the United States
In the Far East. To every foreign eye it would be a deomonstration of
selfish cowardice and futility on our part. The charge that we had tricked
those whom we had undertaken to protect would be accepted. In the
Orient, far more even than in the Occident, prestige is the measuring rod
of success. Such a situation might be an irreparable blow to American
Influence at a time when the state of affairs in the Far East is chaotic,
when every element of stability is threatened, and when out of the Orient
may again come one of those historic movements which might disturb the
whole earth.
Finally, may I say that these serious hazards to the welfare of our
foreign relations in the Far East seem to me to be doubly tragic when it
is considered that they are entirely unnecessary. On the one hand, it is
easy to demonstrate that the enactment of this bill would not benefit
materially the economic interests In the United States, in whose behalf
It has been so strenuously pressed. On the other hand, from my own
experience in my residence in the islands as Governor-General t am thoroughly convinced that, given the requisite patient. disinterested and
intelligent effort by the representatives of this country, a solution of the

Volume 136

Financial Chronicle

Philippine problem ultimately could be achieved with the full consent
of the Filipino people which would not only satisfy their aspirations for
self-government but honorably and fully safeguard the interests of the
United States both at home and in the Far East.
Therefore, in summary, the bill in my opinion is open to the following
most serious objections. In the first place, it finally and totally abandons
the opportunity for a constructive solution of the Philippine problem
which would preserve for future generations of Americans and Filipinos
the benefit of this remarkable and successful e.-periment in co-operation
between these two peoples. In the second place, it terminates our relationship to the Philippines in a way which will inevitably create economic
distress and provoke resentment and unrest in the Islands. Thirdly.
It will thus tend to disturb the equilibrium of the Far East and also to greatly
damage the prestige and material interests of the United States in that
region. And fourthly, it will cause these evils unnecessarily and without
any commensurate benefit to the agricultural interests of the United States.
Very respectfully.
HENRY L. STIMSON.

From the same paper we also take as follows Secretary
Chapin's report:
DEPARTMENT OF COMMERCE.
Office of the Secretary,
Washington, Jan. 9 1933.
The Honorable, the President of the United States, Washington, D. C.
My Dear Mr. President: In connection with the bill just passed by
Congress providing for the eventual independence of the Philippine Islands.
I should like to call your attention to the anticipated effects of the measure
upon the economic life of those Islands. This opinion is based on a thorough
examination of the material on the economic situation in the Philippines
available in the Department of Commerce.
Economic stability of the Philippines and their ability to import from
abroad mainly depend upon the exportation of the principal Philippine
agricultural products, sugar, hemp, coconut and tobacco products, and
also embroideries, which recently have attained considerable importance.
On the basis of the substantial free trade relations with the United States
Inaugurated in 1909, and the more complete free trade established in
1913, the American market for Philippine products has advanced from
a value of $14.700.000 in 1909 to $105,000,000 in 1930 ($124,460,000 in
the peak year. 1929), or over 600%.• The United States now takes
annually approximately 80% of all Philippine exports. These figures
make it apparent that the prosperity of the people of the Philippines depends in extraordinary measure upon the state of their trade with the
United States.
It has been estimated by a reliable authority that had the Philippine
and the United States tariffs respectively been in force in 1930 between
the two countries. Philippine exports to the United States probably would
have amounted to about $39,000.000, representing a loss of 63% of the
actual value of exports to the United States that year.
Where Loss Would Fall.
Of these export products, hemp and copra would not be affected materially by a change in trade relations with the United States, as they
are admitted free. Loss of the American market therefore would fall
upon the other principal export commodities; Sugar, coconut oil and other
coconut products, cigars and embroideries.
The sugar industry, with an investment of approximately $200,000.000.
accounted in 1931 for 48% of the total returns from Philippine exports.
Philippine sugar, so far, has not been able to compete effectively in world
markets with either Cuban or Javan sugars and is therefore sold entirely
In the United States. From a study of comparative production costs, it
Is clear that it could not be sold in the American market even if admitted
under the reduced rate on Cuban sugar, and, considering the present overproduction, no other market is available.
The export of cocoanut products ordinarily accounts for about 25% of
total Philippine export trade. Investments in the industry, including
groves, mills and crop loans, total about $132,000,000. The bulk of the
world's desiccated cocoanut Industry has been removed from Ceylon to
the Philippine Islands, and the value of Philippine cocoanut
exPorts has
increased from 87,000,000 to $37,000,000. But with the withdrawal of
free-trade relations, the Philippines would lose its only market for cocoanut
oil and the by-product, copra cake. Europe buys copra. but not oil, having
its own mills to keep busy. Assuming that copra is continued on our
free list, the loss in oil trade might be partially offset by an increase in
exports of copra to the United States to supply the demand of our West
Coast mills. The cocoanut-oil industry, however, would probably be lost
entirely to the Philippines, and the desiccated cocoanut industry, which
has developed so conspicuously in recent years,
would be likely to revert
to Ceylon, where labor is cheaper and freight rates to the United States
lower.
The United States takes nearly 80%
of Philippine cigars, compared with
less than 5% prior to their free entry into this
country. Loss of the American market, with little likelihood of
establishing a large or stable outlet
elsewhere, would probably endanger the life of that industry.
Effect Serious in This Country.
The budgetary effect of the falling off in trade
into the United States
would be extremely serious. The insular government
derives the bulk of
its revenue from commercial and industrial sources which
would be particularly affected by any severe disruption of the country's trade. Calculations
based on actual Government incomes in 1930 and 1931.and
on the estimated
decline of 50%, indicate that total receipts of the insular
government,
pending readjustments to conditions brought about by loss of the American
market, would be considerably less than actual expenditures in the
past
two years.
Land values would be affected materially. The 640,000 acres of
land
devoted to sugar cultivation would depreciate heavily in value, and as
some of these lands came into competition with areas producing
other
commodities, they would have the effect of lowering prices of such commodities and in turn lowering general land values.
The Philippine National Bank has approximately $13,000.000,
or 55%
of its total investment, in loans and advances directly dependent upon the
sugar industry for liquidation. Disruption of this industry would seriously
affect at least two-thirds of the value of those loans, or more than the
combined capital stock and surplus of the bank. In addition, 64% of the
bank's local loans are secured by real estate: and the indirect losses incurred
by depreciated real estate values would amount to such a substantial sum
as to endanger the solvency of the bank. There are, moreover, five other
commercial and savings banks whose chief form of security is real estate.
Railroads Get Sugar Revenue.
During the past eight or nine years the two railway systems of the
Philippines have received the bulk of their freight revenue from sugar,
*For the purposes of this discussion, comparisons and estimates are
based upon 1930, which, although a bad year commercially, was not as
abnormally depressed as 1931.




429

which has not only accounted for the increases in total freight receipts
but has actually absorbed the substantial losses in revenues derived from
the transportation of other freight. Loss of the sugar traffic not only
would be a heavy blow to the railroads but it would entail further losses
from the great reduction in merchandise which is now carried to the sugar
provinces. The Philippine Government owns the Manila Railroad, which
heretofore has been a profitable investment, and holds bonds of the Philippine Railway Co. to a considerable amount. Moreover, the Government
has guaranteed interest payments on the bonds of the two railways to the
extent of $21,704,000. In addition to its other budgetary difficulties.
therefore, it is believed the Government would be faced with further heavy
financial obligations in the event the railways suffered by reason of any
serious disruption of the sugar industry.
Among other probable results might be mentioned the budgetary burden
incidental to unemployment, the lowering of the standard of living and the
tendency of capital to leave the country under the conditions of economic
disturbance created by the loss of the American market.
Very sincerely,
ROY D. CHAPIN, Secretary of Commerce.

Secretary of Agriculture Hyde's report also follows:
The President, The White House.
Dear Mr. President: I refer to the so-called "Philippine" bill which
provides for eventual independence and should like to call your attention
to some phases of this bill as it affects American agriculture.
Under the bill, there are four stages or periods which relate to free Imports of Philippine agricultural products into the United States.
The first period begins with the enactment of the bill, and lasts until
after the intermediate government is set up.
There then ensues a second period during which quota limitations upon
sugar, coconut oil and fibers are fixed.
The third period commences after five years, during which an export
duty rising from 5% in the sixth year to 25% in the tenth year is provided.
The fourth and last period begins with complete independence. During
this last period full import duties will be applied to importations of Philippine agricultural products.
During the first period, that is until establishment of the intermediate
government, no protection whatever is afforded to American agriculture.
'
Under the provisions of the bill, this period, even in normal workings
is Prictically certain to occupy three full years; and should there be differences of opinion between the Philippines and the United States as
to legal questions, this period might be indefinitely prolonged.
Therefore this bill permits a period of time lasting from three to an
Indefinite number of years during which time the Philippines can delay
while they debate the merits of free imports as against independence.
So long as they comply with the technical provisions of the Act, the United
States cannot expedite their action. There is no protection for American
agriculture during this period. The bill does not, therefore, constitute
what has been claimed for it.
In the second period quotas are established. These quotas are set
for sugar. 50% higher than imports for 1928; for vegetable oils. 25% larger.
Inthe third period there is no real protection afforded to American
farmers by the export taxes. Even the maximum, 25% of the existing
duties, would afford American competitive products no adequate protection.
The fourth and final period, of course, brings Philippine products under
tariff protection of American agriculture. That time may be 10 to 12
years off.
It seems clear to me that the American farmer is being misled as to
the protection offered by this bill. It is now that he needs protection.
not several years hence when the country has generally recovered.
Sincerely,
ARTHUR M. HYDE. Secretary.

No Change Seen in Philippine Bond Position—Bankers
Call United States Sponsor of Insular Issues,
with Moral Obligations Implied.
The following is from the New York

"Herald Tribune"

of Jan. 19:
The legislation passed by Congress for granting eventual independence to
the Philippine Islands is not likely to exercise any material affect on the
status of approximately $68,000,000 of Philippine Government bonds now
outstanding and held chiefly in the United States, according to specialists
in securities issued by the insular possessions and territories of this country.
Although acceptance of the proffer by the Philippines is considered exceedingly doubtful, careful studies of the situation were promptly instituted in
several quarters.
Successive steps taken by Congress in recent weeks have been marked by a
steady narrowing of trading in Philippine bonds, while quotations declined
substantially. Only a few transactions were reported yesterday, with bid
and asked figures 3 to 4 points apart. The 5%s due 1941 were quoted to
yield about 5.50%, while 41
/
2s and 5s due 1952 were at figures to yield 5.85
to 5.45%. Dealings in these and other obligations of the insular governments are confined to the over-the-counter market, but they are readily
traded as a rule.
Rated As High Grade.
All bonds issued by the insular possessions and territories are considered
high grade obligations by experts, as they are classed as instrumentalities
of the United States Government. The financing represented by the issues
was made possible, in most cases, by the contributory support of the United
States Government and marketing was effected chiefly through the Bureau
of Insular Affairs an official agency of the Federal Government.
The issues of the Philippine Islands Government, the Puerto Rican Government and the Territory of Hawaii are usually grouped in the same classification, as they are alike in most essential characteristics. The aggregate
of bond issues outstanding is estimated at $130,000,000. In addition to
the 268,000,000 of Philippine bonds, there are outstanding about $30,000,000
of Puerto Rican bonds, and $32,000,000 of Hawaiian obligations.
United States Viewed as Sponsor.
In a strict sense these bonds represent solely the debts of the respective
insular governments, as no definite legal responsibility has been incurred
by the Federal Government in Washington with respect to the issues. The
Federal Government, however, stands virtually in the position of sponsor
and trustee of the loans, and specialists are convinced there is an inescapable
moral obligation. The loans were contracted in accordance with Congressional enactments, and no Washington authority ever has expressed a doubt
regarding our Government's ultimate responsibility. Every loan of the
three insular governments is generally regarded by experts as committing

430

Financial Chronicle

the United States to meet or arrange for payment at maturity in the
unlikely event that the islands governments are unable to effect payment.
The legal aspect of Philippine Government bonds was examined by an
Attorney-General of the United States early this century. It was held, after
this survey, that the loans are authorized explicitly by the national power.
As the transactions were negotiated under the auspices of the United States
of America, and by its recognition and aid, there can be no doubt, this
opinion stated, that "the national power will take the necessary steps in
all contingencies to protect the purchasers in good faith of these securities."
The impressive background of the bonds is further augmented by the fact
that the securities are acceptable as collateral to secure postal savings
funds and by their complete exemption from Federal, State or local government taxation.

Main Points of Philippine Independence Act.
Salient features of the Philippine independence bill, which
became law on Jan. 17, were indicated, as follows, in a
Washington dispatch on that date to the New York "Times,"
are as follows:
The Act, in order to take effect, must first be accepted by concurrent
resolution of the Philippine Legislature or by a convention called to pass
upon that question.
The Legislature is authorized to provide for the election of delegates
to a constitutional convention to draft a constitution within one year.
The constitution must be republican in form, include a bill of rights, and
contain provisions having to do with the conduct of affairs of the islands
pending withdrawal of our sovereignty.
Within two years this constitution is to be submitted to the President of
the United States. If he disapproves, it shall be returned for further
action until an agreement is reached.
When approved, it is to be submitted to a direct vote of the Philippine
people within four months. If a majority vote for the constitution, this
will be deemed an expression of the will of the people in favor of independence. If a majority vote against it, the existing Government of the
Philippines shall continue.
If the vote is favorable, the President shall order the termination of
the present Government and transfer authority to the new one for a 10,-year
probationary period, during which Acts affecting coinage, foreign commerce
and immigration, among others, must have had Presidential approval.
During the period foreign affairs shall be controlled by the United
States and all acts passed by the Commonwealth Legislature must be reported
to Congress.
Free entry of Philippine imports into the United States will cease and
regular tariff rates will be imposed on products, including sugar in excess
of 50,000 long tons of refined and 800,000 long tons of raw sugar a year.
The United States reserves the right to maintain military bases, and
the Act asks the President to enter into negotiations with other Powers for
neutralization of the Philippines after independence.
Complete independence shall be granted by Presidential proclamation
on the Fourth of July following expiration of the 10-year period upon
Inauguration of the new Government under the constitution provided.

Increase in'Philippine Tariffs—Laws Place Duties on
Gold Basis, Prevent Dumping and Allow Rates
Over 100%.
Four laws increasing Philippine tariffs were put into effect
on Dec. 21 by Governor-General Theodore Roosevelt. Associated Press advices from Manila, on that date, as given in
the New York "Times," added:
Enacted by the recent Legislature and approved by President Hoover,
the measures place duties on a gold basis instead of deprecated foreign
currencies, prevent dumping, permit duties of more than 100%, and increase
the rates on meat, lard and eggs.
A fifth Act, increasing tariffs on footwear, particularly rubber soles
that are imported largely from Japan, were also signed by President Hoover,
to be effective in 30 days. Another measure increasing rates of more than
100 items in the first general Philippine tariff revision since 1909 was also
approved by Colonel Roosevelt, and the President's signature is expected
later.
Japanese importers are reported to have brought in goods valued at about
$500,000 in the last few weeks. They declare the increases, recommended
by the Governor-General, protect only American interests. Secretary of
Finance Vincente Carmona said they were expected to protect Filipino
producers and increase insular revenue.

President-Elect Roosevelt Reported as Favoring Farm
Relief this Session "for 1933 Crop"—Conference
with Senator Smith.
From Washington on Jan. 19 a dispatch to the New York
"Times" said:
In the midst of the many legislative problems presented to him in his
conferences here to-night, Governor Roosevelt only found time to say of
farm relief that he stands for the passage at this session of legislation along
the lines of his Topeka four-commodity speech.
In this farm relief advocates were inclined to find little comfort.
They had hoped that the President-elect would see fit to give the signal
for full speed ahead, as they felt that nothing short of determined support
from him would save the allotment plan from death of one sort or another
In the Senate.
"I took the position back in November," Governor Roosevelt told newspaper men to-night, "that farm relief should be enacted in the short session
of Congress to take care of the 1933 crop. My position on farm relief has
not changed since the Topeka speech."

President-elect Roosevelt discussed farm legislation now
pending in Congress at a conference in New York on Jan. 16
with United States Senator Ellison D. Smith of South Carolina, ranking Democrat on the Senate Agricultural Committee. From the New York "Journal of Commerce" of
Jan. 17, we quote:
The Jones bill, containing the domestic allotment plan of farm relief,
which was passed by the House last week, is now in the hands of the Senate
Agricultural Committee. Before leaving his Hyde Park home for this city
or the conference with Senator Smith the President-elect again stressed




Ian. 21 1933

that he was not interfering with details of the legislation pending before
the present session of Congress.
Discuss Farm Policy.
Tho President-elect conferred with Senator Smith on the general farm
relief policy. The question of agricultural credits as well as the proposal
for bringing about an increase in commodity prices was under discussion.
Those close to that President-elect stated yesterday that Mr. Roosevelt
feels that the Democrats cannot be held responsible if their program fails
of passage during the present session of Congress due to the fact that both
Houses of Congress are almost equally divided and that a Republican President is still in office.

A Washington dispatch Jan. 17 to the same paper said:
Definite increases in farm prices under a program that will adjust agricultural production to demand is the main desire of the President-elect,
according to Senator Smith (Dem., S. C.), who to-day related to the
Senate Agricultural Committee "impressions" he received during his conference with Mr. Roosevelt in New York yesterday.
Passage of the domestic allotment plan limited to just wheat and cotton
for a trial period of from one to two crop years is much preferred by President-elect Roosevelt, the Senator said.
Addition of other commodities would "clutter up the bill," and add immeasurably to the difficulties of its successful administration, in the opinion
of the next President,adding that it was the original intention of Mr.Roosevelt to have the bill include wheat only.
See Strange Harmony in Views.
Agricultural leaders here in commenting on the South Carolina Senator's
revelations hold that it is an interesting coincidence that his "impressions"
of what the President-elect desires in the way of farm legislation agree
almost exactly with Senator Smith's own Ideas of what it is possible to
obtain at the present session.
"Of course, I cannot quote the President-elect, nor make a statement as
to what he desires." Senator Smith said "I can only give my impressions
after a conference with him."
Another "impression" received by the Senator, who will be Chairman of
the Senate Agricultural Committee during the next session, was that Mr.
Roosevelt is agreed that cotton would not be as successfully taken care of
under the allotment plan as wheat, because about so% of the former surplus crop is exported.
Governor Roosevelt will be glad to go along with cotton producers if
they will get together and agree on an amendment to the allotment plan,
according to Senator Smith.
The South Carolina Senator has a variation of the allotment plan for
cotton, which he said he outlined to Mr. Roosevelt, providing that where
cotton farmers agree not to produce in the ensuing year, the Government
would buy out of the surplus market the amount of cotton the farmers had
contemplated planting and place it to their credit in storage to be sold after
Aug. 1, the date of the new crop year. Regional credit agencies set up
under the Reconstruction Finance Corporation Act would be required under
this plan to handle the cotton transactions. When sold after the new crop
year, cost of storage and handling the cotton would be deducted and the
proceeds turned over to the farmers who lived up to their part of the plan
not to plant.

Kent Plan Whereby Government Would Guarantee
Industry Against Loss Suggested by President
Miller of Reconstruction Finance Corporation at
Hearing Before Senate Committee on Unemployment Relief—Emergency Advances Exceed 143
Millions—Testimony of Atlee Pomerene—Relief
Loans to States.
Before the subcommittee of the Senate Committee on
Manufacturers, on Jan. 9, Charles A. Miller, President of
the Reconstruction Finance Corporation, told of the so-called
Kent Plan by which the Government would guarantee industry against loss in event it restored the activity of plants
to normal, and his suggestion that the plan held elements
of possible economic restoration. According to the "United
States Daily," if it revived industry, he asserted, it would
prove "the solution of the unemployment problem."
Mr. Miller's views were given at a hearing on the La
Follette-Costigan $500,000,000 unemployment relief bill. In
Washington advices, Jan. 9, to the New York "Times," it was
stated that Mr. Miller explained that he was not speaking
for the Reconstruction Finance Corporation, and that he
realized he might be labeled a "Socialist" for expressing
such an opinion. The statement that the Reconstruction
Finance Corporation has employed "the rule of reason" in
making relief loans to States and has determined that people
shall be supplied with food so long as the Federal funds
last, was made by Atlee Pomerene, Chairman of the Corporation Board, at the hearing before the Senate subcommittee
on Jan. 9. The "United States Daily," from which we quote,
went on to say:
Amplifying his statement, Mr. Pomerene advised the Committee that
at no time has the Corporation directorate adhered to a "hidebound" Interpretation of the Act, appropriating $300,000,000 for Federal relief loans.
On the contrary, he asserted, the intent always has been to give an "elastic
construction" to the congressional provision.
Administering of Funds.
Mr. Pomerene and other members of the Board and Fred C. Croxton,
specialist in relief matters, were called before the Committee to give the
"story of the experiences" through which they have gone in administering
funds set aside for relief of the destitute and distressed. Senator La Follette
(Rep.), of Wisconsin, Committee Chairman, said the desire was for infomiation as to how and where the needs can be met. Mr. Pomerene replied that
the Board was doing the "most conscientious job in its power" to carry
out the spirit of the law and meet the needs of the times.
The Corporation bad loaned a total of $143,653,000 of Its total relief
fund by Jan. 1, Mr. Pomerene said, and he added that "we have been
working night and day" to accomplish the task. He asserted there had
been few differences of opinion as to the course of action in the fund

Volume

136

Financial Chronicle

administration, and that all recognized the urgent necessity for friendly
and careful consideration of the calls made upon the Board for funds. . . .
Mr. Miller, as did Mr. Croxton, urged work relief as against cash or food
contributions for relief purposes. He explained that he did this on the
basis of relief administration which he had conducted in Utica, N. Y., where
he found an early tendency of many relief beneficiaries to think there was
no need for working when they could get nearly as much relief without it.
"It is a problem of protecting against the future," he added. "I believe
we should guard against the change in psychology that so often accompanies
cash or food contributions except where that form of relief is absolutely
necessary."
Mr. Croxton informed the Committee of detailed relief provisions and
surveys carried on. "I know that our base," he said, "is two or three
times as high as has been followed in most communities." Senator La
Follette inquired whether that was adequate, and Mr. Croxton replied
that "relief never was or is adequate." He said the Corporation plans
used the word "base" of relief instead.
Availability of Funds.
Referring to previous testimony before the Committee, Senator Costigan
(Dem.), of Colorado, inquired of Mr. Pomerene whether the Corporation
ever had taken the position that the $300,000,000 fund should be spread
over a period of two years.
"I have never advocated that," Mr. Pomerene replied. "What I did say
was that the money should not be made immediately available." He said
there had been no disposition on the Board's part to withhold funds when
applications showed the need of them.
Replying to an inquiry by Senator La Follette, Mr. Pomerene said the
Board had sought where possible to encourage the local or State care of
their own people. He continued: "Whenever State officials came to see
me or Mr. Croxton or Mr. Cowles (Gardner Cowles, Sr.) we took pains to
see that that suggestion was gotten over to them. We wanted to see the
States make reasonable efforts.
Rule-of-Reason Policy.
• Committee members asked for further information respecting the Board's
rule-of-reason policy, and Senator Wheeler (Dem.), of Montana, inquired
specifically as to the efforts the Board made to determine whether a State
had exhausted its resources.
"We had to follow the Act, which indicates that relief first must be
met locally," Mr. Pomerene replied. "Then, when the municipalities or the
States can't or don't take care of the needy, somebody else has to do it.
My own thought is that when the local or State units of government don't
do so, it is your job as legislators to see that the relief is provided."
Local Relief Efforts.
Mr. Pomerene told the Committee there were always certain elements
concerning a State's position, financially, that were self-evident. He
cited the limitations carried in the constitutions of many States, fixing a
maximum of bonded debt or of a maximum tax level. These limits, when
they have been reached, naturally provided an "obvious" basis for the
Board to consider extending Federal funds to the particular applicants,
he said.
"In other words," Senator Costigan interjected, "you wanted the applicants to show a reasonable exhaustion of resources."
"I believe that states the policy and the situation clearly," Mr. Pomerene
replied.
The Board Chairman informed the Committee he had no suggestions for
amendments to the relief Joan sections "unless it was the purpose to change
the entire policy." He said there could be amendments drafted to clarify
the section under which loans are made for self-liquidating projects, but
the Cormnittee did not pursue its line of questions respecting these.
Use of Federal Funds.
Mr. Pomerene related reports he had received about difficulties faced in
souse States by Governors over advanced absorption of Federal highway funds
In relief distribution. Senator Le Follette had pointed out that testimony
given in the course of the hearings had shown an alignment in some States
between urban and rural sections of this regard.
"You know that the Act provides for deductions of relief advances from
future contributions to highway building by States," said Mr. Pomerene.
"We have found that in some instances the Governors have found political
resistance on the part of the rural sections which do not want the road
work stopped.
"In other places we have learned that this advanced use of Federal
highway funds has resulted in some financial embarrassment, because of
commitments already made. There was opposition to the use of those
funds for relief, regardless of the necessity for relief. I do not know how
widespread this condition is."
Agreements with Cities,
Senator La Follette inquired whether the Reconstruction Finance Corporation had knowledge of agreement "forced" by States with the cities, for
whom they borrowed, that there be repayment on stated terms.
"I know of no such agreement," Mr. Pomerene replied. "I ought to
say, however, that things of that sort would come to us only accidentally."
Senator Costigan (Dem.), of Colorado, reviewed some of the testimony
previously received, and recalled particular testimony that "probably the
peak of relief needs would come in about a year."
"If you want a frank answer," Mr. Pomerene replied, "I'll tell you I do
not think anybody can tell what is going to happen a year from now.
"I have such faith in the heads of industry that I believe they will get
their machinery in motion as quickly as possible—as quickly as they can
see a promise of return of cost. Beyond that, I don't believe anybody can
say when the peak of relief needs is going to be, whether it is ahead of us
or behind us."
Conditions Involved.
The Corporation Chairman then went on to say that the whole situation
presents so many uncertain factors to be considered. He called attention
to the weather conditions in the North and in the South, general economic
conditions, whether the community is industrial or agricultural or mining,
and other elements that had to be considered in making a "guess" as to
the future needs.
Mr. Pomerene pointed to these various factors in denying that the
Reconstruction Finance Corporation had ever advised any of the States as
to the amount they may receive in Federal loans. Senator Costigan said
he heard suggestions of such action by the Board, but Mr. Pomerene declared
there was "no such thought on the part of any member."
"I may say," he added, "that we have told the States to figure out
their reasonable needs, and present their facts. We then would give them
favorable consideration."

From the Washington account, Jan. 9, to the New York
"Times," we take the following:
Mr. Pomerene said that loans to States and Territories to date totaled
$143,858,785, of which $129,450,984 were loans made through Governors
of States, and the remainder, $14,207,781, to political subdivisions.




431

He added that the R. F. C. expected these allocations to take the States
concerned through January and February.
The loans, it was explained, are as a rule for short periods, a policy
adopted with the approval of the Governors. Greater amounts for longer
periods, in the opinion of the Governors and other State authorities, might
tend to slow up the activities of local agencies, thereby increasing the
burden of the Federal Government..
The States which have not yet applied for relief are New York, New
Jersey, Maine, Vermont, Massachusetts, Connecticut, Rhode Island, California, Delaware, Maryland, Nebraska and Wyoming. The Territories
receiving loans are Hawaii and Puerto Rico.
Most Lent to Illinois.
The States which have received the largest advances are Illinois, $82,493,228, and Pennsylvania, $26,705,446. Under the law not more than
$45,000,000 may be lent any one State. . . .
Mr. Miller, who followed Mr. Pccnerene, said that the administration of
relief should be on a strictly business basis, and that if some agency other
than the R. F. C. could do a better job, "then for Heaven's sake" turn it
over to that agency.
Business methods and not sentiment, he held, should control the distribution of Federal relief funds.

Governor Lehman of New York Continues Agricultural
Advisory Commission—Body Formed by Roosevelt
in 1928 Prepared the Original Agricultural Aid
Plans—Henry Morgenthau, Jr., Again Head.
Governor Lehman of New York announced, on Jan. 15,
the continuance of the Agricultural Advisory Commission
under the Chairmanship of Henry Morgenthau, Jr., Conservation Commissioner, an Albany despatch to the New
York "Times" said:
This body of legislators, farm experts and civic leaders was formed in
1928 at the request of Mr. Roosevelt and prepared his original schedule of
recommendations for farm aid which won him support in rural sections of
the State.

Governor Lehman's announcement said:
While the activities ot this Commission are wholly unofficial,the Governor
feels that many constructive suggestions and recommendations will result
from the co-operation and interest of this group on agricultural matters and
related subjects.

According to the "Knickerbocker Press" of Albany the
Commission as named by Governor Lehman includes all of
those who had served on the Commission during the two
administrations of President-elect Roosevelt and five additional members as well.
The five new members besides Senator William T. Byrne
of Albany, Chairman of the Senate Committee on Agricultural Affairs, are Senator Charles L. Buckley, new Chairman
of the Senate Committee on Taxation and Retrenchment;
Senator Seabury C. Mastick, Chairman of the Special Tax
Revision Commission; Mrs. Edward Eddy of Saratoga
Springs, President of the New York State Farm Bureau
Federation, and Dr. Flora Rose, Director of the College of
Home Economics at Ithaca. From the same paper we
quote:
Conservation Commissioner Henry Morgenthau, Jr., continues to head
the Commission. Other members are
Fred Freestone. Master of the New York State Grange.
Dr. 0. E. Ladd, Dean of the College of Agriculture at Ithaca.
L. R. SiMO/IS, Director of Extension. College of Agriculture, Ithaca.
Dr. G F. Warren, of the Department of Agricultural Economics, College
of Agriculture, Ithaca.
C. R. White of Ionia, President of the New York State Farm Bureau
Federation.
Fred Sexauer of New York City, President of the Dairymen's League.
H. E. Babcock, Ithaca.
Jared Van Wagenen. Jr.. Director and Lecturer of the Farmers' Institute,
Lawyersville.
Senator Leigh G. Kirkland of Randolph, former Chairman of the Senate
Agricultural Committee.
Assemblyman Frank Smith, Chairman of the Assembly Committee on
Agriculture.
Berne A. Pyrke, former Commissioner of Agriculture and Markets.
Charles H. Baldwin, Conunissioner of Agriculture and Markets.
Henry R. Talmage of Riverhead.
John Fallon of Constable.
James R. Stevenson of Cayuga.
Isaiah D. Karr. Almond, All Master Farmers.
C. N. Halliday, Secretary of the Sheffield Producers' Co-operative Association.
Assemblyman Walter L. Pratt, Chairman of the Assembly Committee on
Taxation and Retrenchmen.
Walter Clark. President of the New York State Horticultural Society.
E. R. Eastman, Editor of the American Agriculturist.
A. G. Waldo of Canastota, President of the New York State Vegetable
Growers' Association.

Missouri State Life Insurance Co. Received $6,000,000
Loan from Reconstruction Finance Corporation
in 1932—Barnes Group Chooses Directors.
Seven directors of the Missouri State Life Insurance Co.
were re-elected and six new directors chosen at the annual
meeting of stockholders at St. Louis, Jan. 17. The election
was unanimous, with 385,000 of the 500,000 shares represented, including 148,000 owned by the Kentucky Home Life
Insurance Co. [The latter company was placed in hands of
receiver Jan. 17.] The new directors are:
James A. Reed, of Kansas City, former United States Senator, attorney
for the Barnes interests, who voted the Kentucky Home Life block of stock.

432

Financial Chronicle

Bennett C. Clark, United States Senator-elect.
C. 0. Shepherd, of St. Louis, Vice-President and actuary.
Carl Sherman, of New York, lawyer, former New York State Attorney'
General.
A. B. Kinniard, insurance broker, of Louisville.
Henry Perkins, capitalist, of Louisville.

The directors who were re-elected are:
Julius H. Barnes, of New York, Chairman.
William T. Nardin, President.
E. D. Nims, of St. Louis, Chairman of the Executive Committee.
F. 0. Watts, Chairman of the Board, First National Bank, St. Louis.
T. M. Pierce, St. Louis, lawyer.
Theobald Feiss, of Cincinnati.
Paul
Davis, Nashville, Tom., banker.

3r.

In reporting the trahsactions, an Associated Press dispatch from St. Louis, Jan. 17, further states:
Mr. Nardin, in his report as President of the company, disclosed that
the company had borrowed $6,000,000 from the Reconstruction Finance
Corporation to meet demands of its policyholders for loans or cash surrender
values. These loans, he said, were received from the Government between
April and August of last year, the last one being $850,000, on Aug. 15.
Mr. Nardin said the loans were secured by bonds having a market value
substantially higher than the amount of the loans. He said the bond values
were higher now than when they were posted as collateral, and the loans
could be paid off at any time by sale of the bonds, but not without some
sacrifice of the company's assets. The loans were made for six-month
periods, and some of them have been renewed.
Cash loans to policyholders during 1932 amounted to about $14,000,000,
Mr. Nardin told stockholders. He said all the money received from the
Reconstruction Finance Corporation was used in payments of loans on
policies and cash surrender values.
Surplus Up $204,689.
During 1932 the company charged off against earnings $836,168 to meet
the depreciation of security and real estate value, Mr. Nardin related. It
set aside $350,000 for a contingency reserve against future loss of assets,
bringing that reserve up to $850,000. It added $204,689 to surplus and
paid no dividends.
Profits last year were $1,420,655, a gain of $771,901 over those of 1931,
Mr. Nardin reported, which he attributed to a lower mortality rate among
policyholders.
Mr. Nardin said the company has suffered through contests for control
by holders of a large block of its stock, and that fear that control of the
company may get into "improper hands, has been a demoralizing and damaging influence." This block, amounting to 29.5% of the 500,000 shares,
Is held by the Kentucky Home Life Insurance Co. of Louisville. The Barnes
Interests recently acquired complete ownership of Kentucky Home Life,
aided by an $800,000 loan from Missouri State Life. Mr. Nardin said the
Barnes interests intend to place this block in a voting trust to stabilize
the management of Missouri State Life.

Receiver Appointed for Kentucky Home Life
Insurance Co.
An Associated Press dispatch from Frankfort, Ky., Jan. 17,
had the following to say:
Lieutenant-Governor A. B. Chandler and the Fidelity St Columbia
Trust
Co. of Louisville were appointed temporary co-receivers of the Kentucky
Home Life Insurance Co. by Circuit Judge H. Church Ford late to-day
(Jan. 17) on application of Gemmill B. Scuff, State Insurance Commissioner.
Appointment of a receiver for the recently formed Kentucky Home
Life
was requested by Mr. Senff in a petition attacking present owners
of the
company.
The Insurance Commissioner stated he believed "the condition of the
Kentucky Home Life Insurance Co. is such as to render its further proceedings hazardous to the public and its policyholders." He informed
the
court he had revoked all licenses issued to the company or its agents.
Charges that a re-insurance agreement between receivers of the InterSouthern Insurance Co. and Kentucky Home Life, which took over its
assets, was being violated were made by the Commissioner.
The suit was brought after efforts were made by State Auditor J. Dan
Talbott to compel compliance with an agreement which he said provided for
placing the 148,050 shares of Missouri State Life Insurance Co. and stock
owned by Inter-Southern into a voting trust approved by the auditor;
that a majority of Kentucky Home Life directors be residents of Kentucky;
that no directors or officers of the company be appointed for four years
without the auditor's consent, and that the principal depositories
of the
company be located in Kentucky.

An Associated Press dispatch to the New York Evening
a-Post" of Jan. 20 had the following:
A motion to set aside the temporary receivership appointed Tuesday
for
the Kentucky Home Life Insurance Co. was filed with Circuit
Judge H.
Church Ford to-day by counsel for the Company. At the
same time an
answer was filed denying the allegations of Gemmill B. Senff,
State Insurance Commissioner, who made the application for the receivership,
claiming
the owners of the Company had failed to comply with the terms of
an agreement made when it took over the assets of the old
Inter-Southern Life
Insurance Co.

Senator Couzens Investigating Committee Inquiring
into Loans Made by Reconstruction Finance
Corporation "Unable to Make Any Criticism
."
On Jan, 13 Senator Couzens reported to the U. S. Senate
the results of the investigation made by the special committee, under his chairmanship,into loans of the Reconstruction Finance Corporation. In his statement to the Senate,
Senator Couzens said that "the Committee has concluded
its work, so far as it is able to go, and desires to submit at
this time a report. For the purpose of the "Record" and
the press, in view of the fact that we have no printed copies,
I desire the indulgence of the Senate to read a few paragraphs
from the report." In the extracts from the report read by
Senator Couzens it is stated that "from the data at hand
your Committee is unable to make any criticism,"




Jan. 21 1933

From the "Congressional Record" of Jan. 13 we quote:
Mr. Couzens: After reciting the instructions under the resolution
and
attaching to the report all the exhibits m the case, I want to point out that
each member of the Committee was supplied with a list of the loans made,
and in the last column of the report filed by the Corporation,
there is
shown the amount of security, as valued by the Corporation,
but the list
of securities offered was not enumerated except in a few cases.

From the "Record" we also take the following extracts
from the report made available by Senator Couzens:
No funds having been provided the Committee, an examination
of the
records of the corporation was not made nor the securities
checked. To
have done this would have required a substantial staff to not
only check the
records of the Corporation, but to have gone to the 12
Federal Reserve
banks to make an examination of the securities, the same
having been
deposited in those Federal Reserve banks for convenience.
This report of the loans made by the Corporation from the
time of its
organization, Feb. 2 1932, to July 20 1932, is inclusive.
All loans since
that time have been filed with the Secretary of the Senate and
the Clerk of
the House of Representatives. Your Committee therefore
has not gone
beyond the date when these loans were made in confidence.
With the limited opportunity presented to the Committee,
no further
examination could have been made. From the data at hand your
Committee is unable to make any criticism. The loans all seem to
have been
made in accordance with the law, except that we have not been
able to
determine whether loans were made as required by Section 5 of
the law,
namely, to aid agriculture, industry and commerce.
With respect to the adequacy of the security deposited to secure
the loans,
consideration would have to be given to the value of the security at
the time
the loan was made. While an examination and appraisal of the
collateral
might disclose a difference in judgment as to the adequacy of the
security,
an examination now might disclose an entirely different valuation
as of
this date and as of the date the loans were made.
Your Committee does not recommend that the loans be made public in
view of the fact that when the loans were made the Act did not require
that they be made public and the borrowers were not contemplating that
they be made public. However, if in the judgment of the Senate, they
should be printed and made public, the records are available.
The Committee has completed its task and compiled with its instructions
in so far as it was possible to proceed under the conditions as have been
stated heretofore. The Committee had no funds and no authorizatio
n to
create any expenses. If the Senate desires to direct that a more exhaustive
examination be made of the work of the Corporation, it whould do so after
discussion as to the extent of the task, the expense which would be involved,
and the benefits which would be derived from that work. The
examination, if the Senate decides that it should be made, should be made
not
only of the loans made prior to July 21 1932, but of the loans
made since
then.

It was stated in Associated Press advices from Washington
that among the loans investigated by the Committee was the
reported $90,000,000 advance to the Dawes bank of Chicago,
which was criticised in Congress and during the recent
political campaign.
Items bearing on the Couzens resolution creating the special
Committee to investigate the loans appeared in these
columns July 30 1932, pages 727-728.
Rail Bills Provide Motor Regulation For New York
State—Roads Draft Two Measures Giving the
Public Service Board Wide Powers—Proposals
Will Be Submitted to Legislature.
Culminating a three-year campaign for a greater equality
of regulation and taxation between the railroads and other
forms of transportation, the railroads operating in New
York State have prepared two bills for presentation in
the
Legislature next week which would provide respectively
for
taxation of commercial highway motor vehicles and for
their
regulation by the Public Service Commission. The
proposed
laws would not apply to vehicles operating for hire
within
cities or villages, nor to vehicles used by their owners in
their
own business. The measures are based on laws passed
in
Texas and Oklahoma which have been upheld by the
United
States Supreme Court. The New York "Times",
Jan. 20,
continues:
The bill for regulation of commercial trucks and
buses would empower
the Public Service Commission to regulate both
common carriers and
contract carriers. The last named carriers operate on
contracts signed with
shippers and do not publish rates and follow other
procedure inherent in
common-carrier operation. Until Dec. 5, when the Supreme
Court upheld a
Texas law affecting contract carriers, some lawyers had
contended those
carriers were exempt from regulation.
The tax bill would provide for the Impost of five mills for
each gross
ton-mile of operation, violations of the law being defined either as
felonies
or as misdemeanors and being made subject to a fine. Both bills
would
become effective on July 1.
Certificates of Convenience.
The Public Service Commission would be empowered by the regulatory
bill to issue certificates of convenience and necessity to common
motor
carriers and permits to contract carriers. Rates charged by common
carriers
would be subject to regulation and review and contract carriers
would be
prevented from undermining common-carrier rate structures.
The tax bill would provide for the ending of reciprocal license privileges
with other States for vehicles operating for hire.
An unusual feature of the regulatory bill is that it empowers the
Commission to prevent unnecessary duplication of service between
motor
vehicles and between them and steam and electric railroads and to
require
the co-ordination of service and schedules between these forms
of transporation. The Commission would pass on charges levied by
common
carriers and it would issue permits for common-carrier motor-vehicle
operation only after notice of hearing had been served on interested
railroads
and other carriers.
Ban on Rate Discrimination.
In respect to charges made by contract motor carriers, the regulatory
bill forbids these agencies "to give or cause any undue or unreasonable

Volume 136

Financial Chronicle

advantage or preference to those whom he serves as compared with the
patrons of any common motor carrier of property . . . or to subject
the patrons of any such common carriers to any undue or unreasonable
discrimination or disadvantage, or by unfair competition to destroy or
Impair the service or business of any common motor carrier of property. . •"
This clause would give the Public Service Commission an effectve
measure of control over the contract carriers, it is believed by the framers
of the bill.
In furthering the measure, the railroads are acting through an organization known as the Associated Railroads of New York State. The companies
represented are the New York Central. Pennsylvania, Baltimore & Ohio,
New York New Haven & Hartford, Lehigh Valley, Delaware Lackawanna
& Western, Erie, Lehigh & New England, New York Ontario & Western,
Delaware & Hudson, New York Chicago & St. Louis and Boston & Maine.

Six Railroads Granted Loans of $5,010,319—Advances
Made by Railroad Credit Corporation to Prevent
Fixed Interest Defaults.
The Railroad Credit Corporation Jan. 19 approved loans
to six railroads totaling $5,010,319 to prevent defaults
by the carriers on their fixed interest obligations. Loans
made by the Corporation since it first began its credit activities now total $53,335,238, of which only $1,211,646 has
thus far been repaid. Under the terms of its charter the
corporation has about four more months in which to distribute
the funds of its pool to carriers faced with difficulties in
meeting their interest requirements. The "Herald Tribune"
Jan. 14 further states:
Net proceeds from freight rate surcharges reported this month, but
representing November 1932 business, were 84,973,427, according to
the official statement of the credit agency released after a meeting of its
directors at the offices of the Railway Express Agency Jan. 19. Net
proceeds from the increased rates for the previous ten months total $52,201,092. making a grand total realized by the Corporation of $57.174,519.
The following table shows the record of the Corporation, as up to Jan. 19:
Not proceeds from increased rates reported in January 1933
(November 1932 business)
$4,973,427.00
Net proceeds from increased rates reported to Dec. 31 1932
(10 months)
52,201,092.00
Total ____________________________________________ $57,174,519.00
Loans authorized to Jan. 19 1933
48,324,919.00
Loans authorized to-day (Jan. 19 1933)
5.010.319.00
Total ____________________________________________ $53,335,238.00
Less repayments
1,211,646.96
Not _____________________________________________ $52,123,591.04
Loans outstanding at Jan. 19 1933
46,930.372.04
Authorized but not made, including to-day's approvals_ _ _ - 5,193,219.00
Total ____________________________________________ $52,123.591.04
"So far as I am aware no railroad Is expected to be placed in receivership in the Immediate future," E. G. Buckland, President of the Corporation, said before the meeting. Mr. Buckland asserted loans were approved
at the meeting to all carriers who had applied to the agency for funds with
which to meet Feb. 1 interest requirements.
When asked if the Missouri Pacific RR, had applied to the Corporation for a loan, Mr. Buckland answered that it had not. He said the
railroad was seeking a loan from the Reconstruction Finance Corporation.

Railway Borrowing in 1932 Exceeded $650,000,000—
Private Loans in Excess of Total Obtained from
Government Agencies.
During the calendar year 1932 the railroads of the country
borrowed from the Government and from private sources
more than $650,000,000 to meet their financial obligations,
and pledged as collateral security therefor more than S1,000,000,000 of mortgage bonds, according to statistical information made available at the Inter-State Commerce Commission. The "United States Daily" Jan. 18 in reporting the
matter states:
Private borrowings for the year exceeded those from the Reconstruction
Finance Corporation and the Railroad Credit Corporation combined,
amounting In 1932 to $357,428,001 as against approximately
$300.000,000
actually secured from the Finance Corporation and the Railroad
Credit
Corporation.
Aggregate Borrowings.
While the Reconstruction Finance Corporation and the Railroad Credit
Corporation have not as yet made public their December 1932 statistics,
It was stated orally at the offices of those organizations that few additional
loans were made to the carriers during that month. With actual private
borrowings up to the close of the year, and 11-month loans from the
Finance
and Railroad Credit corporations, the total borrowings aggregate $656,297,879. •
Of the private borrowings for the year of $357.428,001. $232,946,142 was
secured by the carriers without authority of the Commission under the provisions of the law which permits certain borrowing without Government
sanction, but for which "certificates of notification" must be filed with
the Commission. The remainder of the private borrowings comprised
loans made on secured and unsecured notes authorized by the Commission.
Reconstruction Loans.
Commission records as of Dec. 31 1932. show that the railroads of the
country have asked the Commission to approve a total of $475.109.649 In
loans from the• Reconstruction Finance Corporation, of which the Commission actually has sanctioned $359,394,439.
The Corporation reported, as of Nov. 30 1932, that of these approvals
It had actually granted loans of $261,666,197. The Railroad Credit
Corporation reported loans of $37.203.681 as of the same date.
Total Issues of securities approved by the Commission during the calendar
Year 1932 amounted to $1.188,000,739, of which $1,081,960.011 were
mortgage bonds. The total issues were a gain of $383.596.866 compared
with the issues in 1931, which aggregated only $804,403.873. The 1932
mortgage bond issues contrast with only $724.135.470 In 1931.
During the month of December the Commission approved security issues
of $46,931,000 compared with 8178,249,952 during the mouth in 1931. the
large figure for the month in 1931 being because of heavy issues of mortgage




433

bonds amounting to more than $155,000,000 as against only $42,315,000
in December 1932.
A tabulation of securities approved by the Inter-State Commerce Commission by months and classes of securities for the year 1932, with 1931
comparisons. follows*
1932.
1931.
1932.
1931.
December—
June—
Prior pref. stock
7,500,000 Common stock_
110,000
Common stock_ 3,866,000 7,106,051 Mortgage bonds 92,493,000 60,910,270
Mortgage bonds 42,315,000 155,990,700 Receiver's ctfs__
235,000
20,000
Secured notes__
750,000 7,326,764 Unsecured notes
1,183.791
Unsecured notes
86,437 Equip Artist ctfs.
5,689.000
Equip. trust ctfs.
240,000
Total
92,838,000 67,803,061
Total
46,931,000 178,249,952
May—
Common stock_
60,000 6,238.000
Norember—
Mortgage bonds 103.706,000 14,027,000
Common stock_ 1,200,000 18,033,600 Secured notes
19,230,340
Mortgage bonds 42,080,000 30,910,000 Unsecured notes 7,281.530 20,250.000
Secured notes__ 1,568,000
Receivers' ctfs
565,000 5,200.000
Equip. trust Ws. 988,000
195,000 Receivers' notes
1,736.607
Receivers' ctfs__
1,300,000
Total
130,815,870 47,451,607
Total
April—
45,836.000 50,438,600
Mortgage bonds 9,740,000 5,311.000
October—
Secured notes
4,250,0017
Mortgage bonds 97,098,900 67,248,500 Unsecured notes 1,000.000
150,000
Secured notes
750,000 1,700,000 Equip.tru.st Ms. 2,078,000
Unsecured notes 7,054,951
Debentures
50,000
Receivers' ctfs_ 1,215,000
Equip.trust ctfs. 5,525,000
Total
17,068.000 5.511,000
Common stock_
March—
200.000
Preferred stock_
200,000 Common stock_ 29,360,000
900.000
Mortgage bonds 77,841,150 166,528.000
Total
111,643,851 69,348,500 Secured notes.... 6,304,000 5.000,000
Unsecured notes 2,990,173
400.000
September—
Mortgage bonds 24,425,000 16,787,202
Total
116,495,323 172,828,000
Secured notes
February—
60,000
332,000
Unsecured notes 20.024,500
Common stock_
50.500 1,150,000
Receivers' etfs
Preferred stock_ 1,000,000
4,575.000
Mortgage bonds 120,738,000 110,787.000
Total
49,084,500 17.119,202 Secured notes._ 19,732,000 9,000,000
August—
Unsecured notes 2,901,385
Common stock_ 4,443,600
Receivers' ctfs_ 16,530,469
Mortgage bonds 68,009,000 43,693,000 Receivers' notes
30.000
Secured notes
985,880 10,000.000 Equip. tr. ctts_
7.020.000
Unsecured notes 24,574,100
Total
160,952,354 127,987,000
Total
98,012,580 53,693,000
January—
July—
Common stock_ 6,626.800
26.000
Common stock_ 3,818,350 25.000.000 Mortgage bonds198,910.000 24,594.000
Mortgage bonds 103,534,106 27,681,000 I Secured notes_ _
75,000 2,200.000
Secured notes
5,050,000 2,200,0001 Unsecured notes
4,143,153
Receiver's ctfs
309.000
700.000
Unsecured notes
342,000
Total
205,611,800 30,363,153
Total

112,711,456 55,923,0001

Grand total 1,188.000,739 8e4,403,873

In Brief Will Calvin Coolidge, Former President of
United States, Bequeathed Estate to Wife.
The will of former President Calvin Coolidge (whose death
on Jan. 5 at his home in Northampton, Mass.), was noted
in these columns Jan. 7, page 61) was filed on Jan. 12 in the
Hampshire County (Mass.) Probate Court. From a dispatch from Northampton Jan. 12 to the New York "Herald
Tribune" we quiote:
The document was penned in longhand by Mr. Coolidge while he was
President and is dated Dec. 20 1926. It is written on White House stationery, and the printing on the document is of the words in the upper
left-hand corner of the folded sheet of notepaper "The White House,
Washington."
In writing the will Mr. Coolidge drew lines with his pen from the margin
of the paper to the words at the beginning and end of certain lines, so that
it_reads like this
Will of Calvin Coolidge
Of Northampton, Hampshire_County,
Massachusetts.
Not unmindful of my son,
John, I give all
my estate both real and
personal to my wife. Grace
Coolidge, in fee simple
Done at Washington, District of Columbia, this twentieth day December,
A. D. nineteen hundred and twenty-six,
CALVIN COOLIDGE.
Signed by us on the date above, in the presence of the testator and to
each other, as witnesses to same and the signature thereto.
EVERETT SANDERS,
EDWARD T. CLARK,
ERWIN 0. 4EISSER.
The phrase "this twentieth day" occurs at the bottom of the first page
and apparently Mr. Coolidge neglected to supply the word "of" in continuing the sentence "December A. D. nineteen hundred and twenty-six"
on the next page.
On the outside of the folded document were typed to-day the words
"Will of Calvin Coolidge. filed Jan. 12 1933, Albert E. Addis, Register."
The three witnesses were, respectively, President Coolidge's secretary,
personal secretary and stenographer.
It is assumed that John Coolidge was mentioned in the will only as a
legal formality. A trust fund was established for the Coolidges' only
surviving son, after his marriage to Florence Trumbull, daughter of the
former Governor of Connecticut.
The will was filed by Ralph W. Hemenway, Mr. Coolidge's law partner

Senate Adopts Resolution Designating Feb. 6 as Day
for Congressional Memorial Services for Late
Calvin Coolidge.
Memorial services for the late Calvin Coolidge, former
President of the United States who died on Jan. 5, will take
place at a joint session of the Senate and House to be held
on Feb. 6, in accordance with the following resolution
adopted Jan. 13 by the United States Senate:
(S. Con. Res. 38.)
Resolved by the Senate (the House of Representatives concurring). That
Monday, the 6th day of February 1933. be set aside as the day upon which
there shall be held a Joint session of the Senate and the House of Representatives for appropriate exercises in commemoration of the life, character

434

Financial Chronicle

and public service of the late Calvin Coolidge, former President of the
United States.
That a joint committee, to consist of five Senators and seven members
of the House of Representatives, to be appointed by the Vice-President
and the Speaker of the House of Representatives, respectively, shall be
named, with full power to make all arrangements and publish a suitable
program for the joint session of Congress herein authorized, and to issue
the invitations hereinafter mentioned
That invitations shall be extended to the President of the United States,
the members of the Cabinet, the Chief Justice and Associate Justices of
the Supreme Court of the United States, and such other invitations shall
be issued as to the said committee shall seem best.
That the expenses incurred by the committee in the execution of the
provisions of this resolution shall be paid, one-half from the contingent
fund of the Senate and one-half from the contingent fund of the House
of Representatives.

On Jan.15 Vice-President Curtis, members of the Cabinet,
the Diplomatic Corps and Government officials headed the
congregation at the Washington Cathedral when a memorial
service in tribute to former President Coolidge took place.
According to the Washington "Post" close personal friends
of the late President were also present and the Senate and
House were represented by special delegations.
$5,000 Pension Asked for Mrs. Coolidge.
To carry out & long-standing custom, Senator Austin of
Vermont proposed on Jan. 11, a $5,000 yearly pension for
Grace Goodhue Coolidge, widow of former President Calvin
Coolidge. Associated Press advices from Washington Jan.
11 said:

In the companion bill he sought to obtain for Mrs. Coolidge the franking
privilege on her mail, so that it could be dispatched merely by her signature
being put in the upper right-hand corner of the envelope.
The bills, Mr. Austin said in a brief statement, "represent voluntary
action without the knowledge of Mrs. Coolidge, conforming to various
precedents in which the United States has expressed in certain measure
Its appreciation of distinguished service performed by former Presidents."
He added
"These bills also recognize the high character of public service rendered
by the wives of Presidents.
"Among similar grants previously made. I found those to Julia Gardner,
widow of John Tyler; Sarah C., widow of James K. Polk. Mary Todd,
widow of Abraham Lincoln; Julia Dent, widow of U. S. Grant; Lucretia
R. widow of James A. Garfield; Ida S., widow of William McKinley;
Edith C., widow of Theodore Roosevelt, and Edith B., widow of Woodrow
Wilson.
"It is a special pleasure to a Vermonter to propose these acts in honorable remembrance that both President Coolidge and Mrs. Coolidge were
born in Vermont, and that Vermont has cherished their continued love
for the Green Mountain State."

White House Strain Fatal to Presidents But Not to
Their Wives—Combined Executive and Social
Duties Take Early Toll—Ex-President Taft Only
Exception—Six Widows Still Alive.
The fact that six widows of ex-Presidents of the United
States are still living suggests that the White House job is
more cruel in its effect on the President than on his wife, said
special advices from Washington to the Brooklyn "Daily
Eagle" of Jan. 7, in which it was also stated:
Considering that the man is charged with the enormous responsibilities
of office, while his wife has no official duties other than social, the assumption is natural.
The death of Calvin Coolidge reminds us that in the more recent past
ex-Presidents, with the exception of William Howard Taft, have not long
survived.
There are widows of six ex-Presidents now living, but one of them,
Mrs. Benjamin Harrison. was not married until after her husband had left
the White House, of which she was never mistress. The other widows are
the former Mrs. Grover Cleveland, now Mrs. Thomas Jex Preston; Mrs.
Theodore Roosevelt. Mrs. William Howard Taft, Mrs. Woodrow Wilson
and Mrs. Calvin Coolidge.
One of the most senior of these women, Mrs. Roosevelt, made a campaign
speech for President Hoover at Madison Square Garden last November,
and is now touring the Orient alone, en route to visit her son Theodore,
who is Governor-General of the Philippines at Manila. Mrs. Preston,
Mrs. Taft and Mrs. Wilson are all active in various public and private
pursuits.
Taking the five late Presidents whose widows survice,one finds the following facts:
Grover Cleveland left the White House at 60 and died at 71. He led a
quiet, retired life at Princeton, N. J
Theodore Roosevelt left office at 51 and lived until he was 61. He went
big game hunting in Africa, made a tour of Europe, edited a magazine, was
a candidate for President, and led an active, vigorous life at his home on
Long Island.
William Howard Taft quit the White House, after one term, at 56. He
lived until he was 73,first as a Professor at Yale and a newspaper contributor
then as Chief Justice of the United States. Mr. Taft lived the longest,
both in actual age and in the term of survival after leaving the office of
Chief Executive.
Woodrow Wilson, stricken before he retired at 62, died at 65. He was
an invalid who gave up all his public activities.
Calvin Coolidge left office at 57 and died before he was 61. Except for
some magazine and newspaper contributions,and for an infrequent directors'
meeting, he lived the quiet life of a retired private citizen at his home in
Northampton.
Two Reasons.
of the White House surviving
As to the reasons for former mistresses obvious ones—first, that the
two
their distinguished husbands, there are
responsibilities of office and.
President's wives bear none of the official
yoounger than their husbands.
much
are
wives
the
of
most
second, that
President of the United States has
It is a curious fact that the wife of the
though the Government provides her
no official status whatsoever, even
secretaries.
with personal servants and private




Jan. 21 1933

Widows of Presidents acquire a certain official standing when the Government gives them a pension of $5,000 and the franking privilege of the mails.
Such pension is forfeited if the widow remarries, as in the case of Mrs.
Grover Cleveland, and not all widows receive the pension as,for example,
Mrs. Woodrow Wilson, who has never permitted a pension bill to be introduced in her behalf.
The social duties of the wife of the President are, in a sense, strenuous.
Most of the White House mistresses appear to relish them to the full.
Mrs. William Howard Taft succumbed to the social pressure and was unable
to continue the various State functions given each winter; but the usual rule
Is that President's wives seems to suffer no permanent ill effects from the
round of dinners, receptions, teas and other public and semi-public entertainments that the White House social program requires.
Aided by Staff.
With an ample domestic staff and expert official assistants, the wife of
a President has less actual trouble in giving a state dinner for 50 persons
than the average woman would have in entertaining a dozen. What is
exhausting about the White House social job is that it is an unending performance, in which the sheer need of being at a given spot for a given entertainment, arranged months in advance, becomes tiresome.
Leaving out the great state receptions at which from 1,500 to 3,000 hands
are shaken,there is the constant impact of hundreds of different personalities
the never-ending compulsion of polite chatter, the attempt to appear interested in each new visitor. Moreover, when the President appears in
public it has become the custom in recent times for his wife to appear with
him.
Mrs. Woodrow Wilson went to the Peace Conference at Paris with her
husband, Mrs. Coolidge accompanied the President on a state visit to Cuba
In 1928 and Mrs. Hoover was at her husband's side throughout the recent
campaign, appearing with him at each train stop and on each auditorium
platform.
The responsibilities of office weigh, however, on the President alone.
He is compelled to share in all the major social activities of his wife, and in
addition perform the multifarious duties of the Executive role. It is not
the number of these duties that wear down the President's health so much
as the moral isolation in which he lives, for in the end on all important questions he is the one who must make the decision and thereafter stand responsible.
After-Effects.
The after-effects of that great office are a matter of the merest speculation, but at least, whatever the medical reasons for a particular death, it is
a notable fact that most ex-Presidents have lived to no ripe age.
The placid Coolidge, who was considered in robust health,lived but little
longer after leaving the White House than the invalid Wilson. Roosevelt
survived for 10 years, Clevealnd for 11 Taft, who alone returned to public
office, live for 17 years, a decade of which he spent as Chief Justice of the
United States. He was the oldest of all when he died-73. But even that
Is no great age.
The answer is obvious—that the husband is President, the wife not.

With reference to the widows of former Presidents, Associated Press accounts from Washington on Jan. 12 said in
part:
It comes as somewhat of a surprise to many to learn, for instance, that
Mrs. Harrison still survives. She was his second wife, a niece of his first
wife.
Mrs. Mary Scott Dimmick Harrison, as she calls herself to distinguish
from the first Mrs. Harrison, never occupied the White House as first lady
but she lived there two years, attending her aunt. She is 74 and lives with
her daughter, Mrs. James Main Harrison. in New York.
The first marriage of a President to take place in the White House was
that of Grover Cleveland to Miss Frances Folsom, a girl of 22.
Aboutfive years after the death of Mr. Cleveland, Mrs. Cleveland married
Thomas J. Preston Jr., professor of archeology at Wells College,from which
she was graduated.
The activities of her family have served to keep Mrs. Roosevelt, now 71,
more constantly in the news.
Her own interest in politics drew her from seclusion in the campaign just
past when she introduced President Hoover for his New York address.
Mrs. Helen Herron Taft, now 71, who returned to Washington with her
husband when he was named Chief Justice, established a permanent home
here.
Mrs. Wilson, the war President's second wife, is now 60. She often is
seen at functions of artistic interest, still the gracious woman she was when
her every activity was recorded in the day's news. Her interest in world
politics remains keen, and she continues active contact with the Democratic
Party.
Mrs. Coolidge, the youngest of the group,only 53, will always be remembered here for her marked graciousness.

Iowa Governor Asks Halt on Foreclosures—Mid-West
Speeds Laws to Assist Debtors—Farmers Demand
Anti-Foreclosure Law.
The following (Associated Press) from Des Moines, Iowa,
Jan. 19 is from the New York "Times:"
A proclamation asking holders of realty or personal property mortgages
In Iowa to refrain from foreclosing until legislative bodies have had time to
enact laws meeting the economic emergency was issued to-night by Governor
Clyde Herring.
He also asked debtors to preserve and protect the property covered by
liens and prevent its waste, mortgage holders to refrain from prosecuting
suits already instituted, and county and State officials to carry out the
provisions of the proclamation.
Governor Herring declared that an emergency exists in which farmers and
that
others are in danger of losing their farms, homes and livelihood, and
”these conditions are becoming more acute and more aggravated."
The proclamation was Issued at the suggestion of the emergency legislato
tion committees of the Iowa Senate and House, which are preparing
draft
eased the hope the suggestions he made would
expressed
Herring
l
ediaH
nor
em
Govrer
relieve the situation until the General Assembly and Congress have had
time to pass legislation correcting the difficulties.
which
The proclamation placed Iowa among the Middle Western States
of the first of which was Wisconsin.
have taken steps in this connection, one
tax sales have been halted and
In a number of Iowa counties, delinquent
foreclosure actions stopped by groups of debtors and their friends. In
several instances violence was threatened.
half
The Kansas Legislature has before it a bill to extend to throe and a
ban
years the mortgage-redemption period. Another Kansas bill would
third
deficiency judgments inImortgage-foreelosure proceedings, while a

Volume 136

Financial Chronicle

would exempt from taxation houses occupied by the owners and their families as permanent homes.
A bill pending in the Missouri Legislature would provide that, when a
mortgage is foreclosed and is bought in by the owner or holder
of the mortgage, it would automatically be considered as paid in full.

Under date of Jan. 7 Associated Press advices from
Le Mars, Iowa, stated:
Protesting farm foreclosure sales, 1,000 Northwest Iowa farmers served
notice to day they would appear at the State House to demand relief
laws as the State Legislature convenes next week.
Their action came as a development of a mass meeting of members
of the Farmers' Council for Defense, after they had halted a foreclosure
sale on the farm of John Schimberg for 810,000. It was the farmers'
second such victory in three days.
A caravan of farmers to Des Moines will offer support
for recommendations of District Judge C. W. Pitts of Plymouth County, who Thursday
advocated to Governor-elect Clyde Herring that the courts be deprived
for a period of from five to seven months of jurisdiction in all cases where
a money judgment is involved.
A crowd of between 800 and 1,000 farmers gathered
at the court house
today as the Schimberg sale was about to start. Many of the group were
the same men who on Wednesday slapped Sheriff R. E. Rippey at forea
closure sale on the farm of John A. Johnson, dragged Herbert S. Martin,
Attorney for the New York Life Insurance Co., down
18 stone steps and
forced Judge Pitts to write his recommendations to the Governor elect.
Apparently ready for the same kind of action, the crowd was disappointe
d
when Sheriff Rippey announced the indefinite postponement of
the sale.
After John T. Keenan, the lawyer who started the action, had withdrawn
the suit, Sheriff Rippey later amplified his statement, saying the farmers'
apparent readiness for violence was the primary reason for the withdrawin
g
of the suit.
Leaders of the farm organization have announced that the group stand
ready to prevent foreclosure and tax sales and issuance of deficiency
Judgments "without violence," but added that "sometimes the boys get out
of
hand."
A definite plan for action in Des Moines before the Legislature had
not been completed, although leaders said that the trip would be made in
trucks. The Assembly convenes Monday.
The farmers who are planning the trip represent several communities
in several counties in northwest Iowa, they said, and members of the
Farmers' Council are also members of the Farmers Holiday Association.
The Council. however, is functioning separately from the holiday group,
which a few months ago sponsored
a marketing holiday to bring about
higher farm produce prices.

Further advices (Associated Press) from Logan, Iowa,
Jan. 9, stated:
The farmers' fight against Sheriffs' sales spread
to other communities
in Iowa and Wisconsin to-day.
Members of the Farmers Defense Council at Le Mars, Iowa, scene of
last week's disorder in which farmers halted a foreclosure sale with threats
to an insurance company attorney and a district judge, were organizing an
expedition to Des Moines to exert their influence on the State Legislature
which convened to-day.
About 100 declared their intention of making the trip to urge legislation
which would deprive courts of jurisdiction for period of several months
in
a
cases involving money judgments.
About 700 farmers gathered here and succeeded in preventing the scheduled sale of the A. II. Cleaver farm near Modale. Judge Ernest Miller
postponed hearing the application for receivership made by William
King until
Friday. when the latter failed to appear.
The demonstration was orderly. The group also obtained
postponement of another sale in which Representat
ive Malcolm Baidridge (Republican) of Nebraska, and Fred D. Weed, Federal Building
custodian at
Omaha, were among the plaintiffs.
At Tipton, Iowa, scene
of the "cow war" outbreak in 1930, when the
Iowa National Guard was
called out to enforce administration of the Bovine
tuberculin test law, 20 farmers gathered at the Court
House to protest
foreclosure of the farm of J. A. Hayslett, near
West Branch, birthplace
of President Hoover, Sheriff W. W.
Christian agreed to postpone the
same three days.
Three hundred farmers assembled at Appleton,
Wis., and forced postponement until April 8 of the sale of a widow's farm
on a mortgage foreclosure
action brought by her brother, Arthur
Kunkel of Manawa, holder of the
paper.
A delinquent tax sale at Forest
City, Iowa, also was postponed when
between 600 and 700 taxpayers met to prevent bids.
All county officials
were called before the group and
agreed to give a 20% salary cut to the
Poor fund.

From the New York "Times" we quote the following from
Logan, Iowa, Jan. 14:
Four hundred members of the Iowa farmers holiday movement
won
a victory over Harrison County officials to-day and forced
the postponement
of a Sheriff's sale of a farm to satisfy a mortgage.
To-night everything was quiet and all the farmers had returned
home,
but for a time to-day all sorts of threats were in the air.
The action was similar to those which have recently taken
place in
a number of Iowa and Nebraska counties and indicates
the temper of
the farmers over farm foreclosures.
The farm which was to have been sold contained 160 acres.
It was
owned by Ernest Ganzhorn. The sale was to satisfy a mortgage
ot $4,237
held by F. D. Weed and Representative Malcolm 13aldridge
of Omaha.
The holders of the mortgage had offered to take a discount and
extend the time of the loan, but an agreement could not
be reached and
foreclosure proceedings were started.
Four Ilundred tfass at Courthouse.
Two hours before the time set for the sale Logan was filled with farmers
from all over the county. Four hundred of them gathered in the
courthouse yard and let it be known they would not stand for bidding nor
for
a confirmation of the sale of the property. Leaders and agitators
made
many fiery speeches.
Mr. Weed had submitted a bid of $3,000 for the farm, which would
have
left a deficiency Judgment of $1,237 against Ganzhorn.
The farmers sent a committee to Sheriff Cross to discuss the situation,
and the Sheriff, seeing their mood, called the sale off and will send
the
execution back to the court unsatisfied.
Mr. Woad. in Omaha, said he would take no new steps but would
await
the final action of the Sheriff Under the Iowa law the Sheriff is obliged
to make execution on the judgment, and the matter wW rest in the hands
of the court.




435

The same paper also carried the following from Omaha,
Neb., Jan. 16:
Farmers mobilized at two points to-day and forced Sheriffs
to postpone
mortgage foreclosure sales. At the same time the Farmers
Holiday Association, the Nebraska Federation of Labor and the
State Federation of
Taxpayers Leagues combined to get behind a co-operativ
e legislative
program, including a drive on Lincoln while the State Legislature
is in
session.
Five hundred farmers appeared at the Sheriff's sale of Thomas
Sullivan's
farm near Dakota City, Neb., and warned all against bidding.
Three times
the Sheriff offered the land, but even the holder of the mortgage
was afraid
to bid and the sale was postponed.
Across the Missouri River in Union County, S. D.,
several:hundred
farmers mobilized and prevented a foreclosure sale.
Vied
The State Legislature to-day invited the farmers to go to
Lincoln and
make plain their demands. Lieut. Gov. Jorgenson. in
the absence of
Governor Bryan, who is still ill, took official notice of the
farmers' plans
and issued welcome notices.
"They are certainly entitled to a courteous reception and
treatment,"
said the Lieutenant Governor.

Federal Intermediate Credit Bank of Wichita Reduces
Interest Rate.
The Federal Intermediate Credit Bank of Wichita announced on Jan. 6 a reduction in its loan and discount rate
from 33-% to 24%, effective Jan. 16. This was reported
in the "Rocky Mountain News" of Denver, which also said:
This reduction in rate is possible because of the rate of interest
at which
the bank has been able to sell its debentures for delivery
Jan. 16,;the
announcement said.
NMI
The total of loans made to stockmen and farmers by financing
institutions and discounted with the Federal Intermediate Credit Bank of
Wichita
was $4,143,890.23 on Dec. 311932. This total of discounts is larger
than
at the end of any previous month since the bank began business in
1923.

Technocracy vs. Technology—Former Destructive,
Latter Creative, According to "Industrial Bulletin"
of Arthur D. Little, Inc.
From the January number of the "Industrial Bulletin"
of Arthur D. Little, Inc., we take the following:
Technocracy is a beautiful word, though not so blessed
as Mesopotamia.
It has crowded prohibition and debt payments off the
front page and
given us something different, if not new, to talk about.
It has failed
to tell us how to do anything else. Those who are interested
to learn
how destitute of authority its fulminations are, and how
little confidence
can be placed in its statistics, are referred to the articles dealing with
technocracy in the "Iron Age" for Dec. 22 and in "Time" for
Dec. 26.
Technocracy holds the machine responsible for
unemployment, but.
though China is certainly not under the domination
of the machine, a
recent letter from Peiping says, "In China the depression
is always with
us; to find a large part of the population out of work is but a
normal condition." Obviously, then, we must look beyond the machine
if we are to
find the causes of general unemployment and its remedy.
Technocracy,
In its embodiment in Mr. Howard Scott, looks so much further
that it
has found something even more sinister than the machine. It
tells us,
"Our old system is done for, and the nation has got to swallow
the fact
that the price system is completely played out."
What we are to substitute for the price system technocracy does
not say.
and before we begin to swallow we may well recall that the price
system
has been in use some thousands of years, during which time some billions
of people have been unable to find a more practical or convenient system
for the transaction of their business.
In happy contrast to the gloomy futilities of technocracy stand the solid
achievements of that very different thing, technology. In
a little more
than 100 years technology has increased, immeasurably, the wealth of
the world. It has raised the standard of living of multitudes, provided
countless conveniences and amenities, and vastly broadened our mental
horizon. It has shortened the working day, provided innumerabl
e new
Industries and thereby created millions of new jobs. Those
who talk
with such assurance of technological unemployment should
first picture,
If they can, the cuitastrophic extent of unemployment with which
we would
be faced were we suddenly deprived of the contributions of
technology.
It would mean the immediate discharge of all those directly
or indirectly
employed by our railroads or in steam navigation. There
would be no
automobiles and motor trucks to build and operate and
service; little
demand for new and better roads and none for gasoline. There
would be
no jobs for the millions now employed by the telephone,
the telegraph,
the radio, and the moving pictures. The production of
steel would shrink
to trivial proportions, and the great electrical industries
with their widespread systems of distribution would no longer be employers.
Chemical
plants and textile mills would disappear, and a host
of miscellaneous
Industrial activities based on technology and the machine.
Technocracy is destructive; technology is creative. Let
1113 not confuse
them.

Resolution of American Engineering Council Declares
Against Technocracy—Viewed as "Exaggerated,
Intolerant and Extravagant Claims"—Proposes a
Control in Effect "Class Dictatorship."
In a resolution adopted at Washington on Jan. 14 the
American Engineering Council registered its opposition to
the pronouncements of technocracy, declaring that contrary
thereto, "applied science holds the promise of better things
to come in a society which fearlessly and intelligently meets
its problems." According to the Council the methods of
presentation by the promoters of the movement "has been
marked by exaggerated, intolerant and extravagant claims."
"They have," says the Council, "capitalized the fears,
miseries and uncertainties due to the depression, and have
proposed a control which is, in effect, class dictatorship."
William S. Lee, President of the Council, offered the resolution which was_adopted as follows:

436

,

Financial Chronicle

The statements of a group of men organized under the name "techof
nocracy" have received wide publicity through the press by reason
startling predictions which involve a complete overturn in our economic
structure. These pronouncements, circulated as coming from engineers,
have led to the belief that they represent practical engineering thought.
come to the American
l• Many requests for information on technocracy have
Engineering Council, which is the representative of National, regional
and local engineering societies in the United States.
movelit The Council has endeavored to obtain from the promoters of the
program.
ment an authoritative statement of their findings and their
has
what
beyond
obtained
be
could
It is significant that no information
appeared in the press.
The accepted practice among engineers of presenting new developdiscussion has
ments to some engineering society for critical study and
in magazine
not been followed. The data and statistics brought forward
question;
and newspaper articles as a basis for speculative claims are open to
invessome of the findings have been discredited or disproved by other
tigations.
underThese statements and conclusions may have the serious effect of
they hold out
mining public confidence in our present civilization, and
an unwarranted promise of a quick solution of economic ills.
intolerant
The method of presentation has been marked by exaggerated,
miseries and
and extravagant claims.. They have capitalized the fears,
which is,
uncertainties due to the depression and have proposed a control
in effect, class dictatorship.
imtechnical
Contrary to these claims, there is nothing inherent in
nts. Indeed,
provement which entails economic and social maladjustme
progress.
technology offers the only possible basis for continuing material
during the
The volume of goods produced, distributed and consumed
and
should
may
years 1928 and 1929 was not excessive. That volume
be surpassed upon the return of prosperity.
proved.
been
not
has
economy
machine
a
The alleged unmanageability of
unskilled use rather than
Its dislocations are traceable to improper and
replacement of men by
to inherently harmful characteristics. Complete
returns. Instances
the machine is precluded by the law of diminishing
are increasingly in evidence.
applied science holds
Contrary to the pronouncements of technocracy,
a society which fearlessly and
the promise of better things to come in
Intelligently meets its problems.
Engineering Council that
It is the considered opinion of American
within itself the possibilities of
our present economic structure contains
of higher standards of
progressive improvement and of the attainment
living.
acy Plea—
Four Hundred Leaders Hear Technocr
ists
and
Industrial
Bankers
Leaves
Scott
Howard
Skeptical on New Solution.

Four hundred of New York's capitalists, bankers, industrialists, economists and artists, including some of the
leaders in their fields, and radio listeners •on a nationwide
hook-up heard Howard Scott, chief exponent of technocracy,
explain that movement in an address on "The Place of
Science and Technology in Modern Civilization," at a dinner
given in his honor by the Society of Arts and Sciences at the
Hotel Pierre in New York City on Jan. 13, according to
the New York "Times".
Mr. Scott predicted that if present trends continued
social conditions would get worse and worse in this country,
that unemployment would increase to 20,000,000 within
the greatest social
18 months, that there would be danger of
two
trouble the United States had ever experienced within
and
budget
economize
the
balance
to
attempts
years, that
less purchasing
would only mean more unemployment and
ms would be
moratoriu
debt
and
inflation
power and that
:
resorted to by the politicians. The "Times" continued

gazing at Mr. Scott, and when he
His audience sat in dead silence,
The response when questions were
ended the applause was moderate.
them signed. Mr. Scott disposed
called for was only five slips, none of
returning in each to the idea that "we
of them in a summary fashion,
will tell."
don't have to answer our critics, "time
Most Are Disappointed.
the audience made afterward by the New York
of
survey
In general a
Scott's hearers at the Hotel Pierre
"Times" revealed that most of Mr.
they regarded as a confused presentation
were disappointed with what
as an engineer who had tailed to be explicit
and were skeptical of Mr. Scott
he regarded as necessary.
concerning the new social order which
they did not feel any wiser, but
Older women who were present said
younger women seemed excited by the
were a great deal gloomier. The
men emphasized the fact that
the
of
uncertainty of the situation. Most
bases his predictions of social collapse
the statistics on which Mr. Scott
to scrutiny outside of the group
have not been published or subjected
reluctant to discuss technocracy for
which produced them and remained
it.
publication until they knew more about
.Vanderitp "Reserves Judgment."
said that when technocracy caught
Frank A. Vanderlip, who also spoke,
August he had immediately made contact
the attention of the world last
University and had come
Columbia
associates at
with Mr. Scott and his
had done the world a service in calling atto the conclusion that they
technological Improvements. He left
tention to the great increase In
whether the social theory of the technocrats
the subject with the doubt
or resulted from them. "I reserve judgment,"
had preceded their figures
he said.
Finance at the University of Chicago,
Lionel Edie, former Professor of
system which technocracy would substitute for the
said that the energy
price system using ergs and joules instead of
price system was Itself a
accuracy of Mr. Scott's figures in general and
gold. He challenged the
published so that steel figures might be examined
asked why they were not
telephone figures examined by the telephone
by the steel corporation,
company, and so on.
bankers, said after the speech:
Jefferson Seligman of Seligman Brothers,
for Mr. Scott
think about. I have great respect the
to
thing
great
a
end of the
i
feel
It
are rather gloomy. He seems to Technocracy
offers
but I think his views
bewildered.
me
leave
world is coming. MB opinionsand speculation; it embraces many fields,
for thought
a lucrative field
economics.
and
philosophy, sociology




Jan. 21 1933

Gano Dunn "Resents Claim ."
Commenting at the close of the meeting, Gano Dunn, President of
the J. G. White Engineering Corp.. said:
I resent the claims to science and engineering made by the technocrats
when their methods are so distinctly contrary to tile methods of admen
and engineering. Mr. Scott has just said, 'We do not bother with critics,"
a statement which no man who is a scientist or an engineer could ever make.
David Sarnoff, President of the Radio Corp. of America. said:
I do not intend to express any opinion on technocracy at this time.
It merits deeper consideration. When I have a statement to make it will
be concrete and definite.
Professor Harry Elmer Barnes, writer, said.
The present age has grown through the aid of technology; therefore.
technology should guide us in any new social order we build. There is
no doubt it will play an important part in the future. As I see it, we
face a social change which will come in one of two ways:either through some
form of technocratic fascism or technocratic communism. Either a
minority will set up a dictatorship or the majority will set up a dictatorsnip, and eitner one must accept help from the technologist. The change
will come either by revolution or general acquiescence.
Many others of those present had definite views, in most cases uncomplimentary, but declined to be quoted. One well-known banker
remarked bitterly that Mr. Scott "certainly was selling America short."
Others said his remarks were vague and, beyond criticizing the present
situation, offered no substitute.
Mr. Scott's Address.
Mr. Scott in his address asserted that the politicians would try to use
technocracy "as one of the propositions that will necessitate a state politically that would be so grave that an institutional fascism will be proposed
under the guise of a dictatorial prerequisite of the incoming President."
The speaker declared that there was no hope In either the price system
or the democratic political system to solve the economic problems of the
present time.
"In 1933." he said. "after three years of the most unprecedented conditions that this country has ever known, where the amplitude of the
oscillations of production in this country has gone to greater depths than
have ever been witnessed in any preceding depression, we find ourselves
with more unemployed than we had total population a century ago. Each
succeeding depression in the curves of pig iron, or almost any other major
commodity, seems to swing lower.
"The question which technocracy is posing is that the continued substitution of energy for man-hours on the one hand, brings about not technological unemployment but a reduction of total employment and a
reduction in total purchasing power.
"On the other side the introduction of these factors has brought about
a situation which is bringing it into conflict with the interference control
of the price system of production. The price system originally arose
from out of human labor. Values might be described as arising only as
a condensate of human perspiration. Once you eliminate that, then you
are stabbing at the very basis of the price system, because for an orderly
operation of a price system you necessitate a continuance of man•hours
in total.
"You cannot continue to eliminate man-hours with energy and expect
the system to remain stable.
Not Predicting Chaos.
"We are not attempting to say, as some of our critics have said, that
there is going to be chaos or there is going to be doom. We have merely
stated that if present trends continue, and we see no reason for them
to abate, then you may expect greater total unemployment In this country
within 18 months. At its present rate, that is a very conservative statement when we say that unemployment in the United States in 18 months,
if present trends continue, will exceed 20,000,000.
"We advance this knowing full well that all the debt moratoriums,
inflation and so on are going to be tried with all the astuteness and adeptness that political chicanery can bring to bear in dealing with the social
problems on this continent, that all the legerdemain of our debt merchants
the face of the present situation.
will be brought into play in order to save
"Inflation, which is now, I understand, one of the prime things in our
to those who possess a certain
interest
Congress, of course Is only of real
number of debt claims, because only the man who possesses a large enough
number of debt claims can go into debt fast enough on inflation to take
advantage of it. The man who works for wages or for !salary cannot go
into debt; therefore he cannot take advantage of inflation.
"So that we are in that unique situation that technocracy, receiving
the attention of the world, is now going to be used—at least the attempt
is going to be made to use technocracy—not by them within technocracy
itself, but your present politician and your debt merchants are going to
pose technocracy as one of the propositions that will necessitate a state
politically which would be so grave that an institutional fascism will be
proposed under the guise of dictatorial prerequisites of the incoming
President.
"This Is an unparalleled situation in the history of our country. We
have gone through a National election and not one single political outhas come forward with any proposal
standing figure or financial figure
that has one iota of usefulness in dealing with present-day condition."
Professor Walter Rautenstrauch, head of the Department of Industrial
Engineering at Coiumbla University. said the organization that would
be best adapted to the new social order would "have a purpose clearly defined, representing the common denominator of the group, and a high
purpose: it would have a program that is possible, with a scientific basis
rather than political expediency; a personnel that is competent, with a
high sense of trusteeship; and, finally, the property and materials of
operation."
"These factors are needed in that order," Professor Rautenstrauch conthe property factor uppermost,
cluded. "When they are reversed, with
the social structure is debased."
It was this definition which caused Mr. Edits to declare that technocracy
of the Methodist Episcopal
so defined "might be embraced by the Bishops
Church. by the United States Chamber of Commerce or by either or both
Mr.
Scott ironically to "tell
implored
he
which
political parties," after
us what technocracy really means."

Irving Fisher Scoffs at Technocrats—Yale Economist Says Theory Is Backed by Neither Authority
Nor Reason—Puts Hope in Scrip.
Technocracy was defined at Harrisburg, Pa., on Jan. 14
by Professor Irving Fisher of Yale as something that has
"neither authority nor reason" and whose adherents explain
it with vague assertions made up of "high-sounding words."

Dr.

Volume 136

Financial Chronicle

We quote from a dispatch from Harrisburg to the New York
"Times" which also reported:
Professor Fisher was the principal speaker at the annual dinner of the
Pennsylvania Newspaper Publishers Association, whose guest of honor
was Governor Pinchot.
At the business session to-day subjects discussed included the growing
sentiment of publishers against radio broadcasting of news; governmental
tax problems, including the Pennsylvania State sales tax and the new
State budget.
Our Debt Burden Blamed.
Dr. Fisher asserted in his address that our trouble to-day lay not in
overproduction or technological improvements, as technocracy contends,
but in overindebtedness and deflation.
"To me the Most marvelous thing about technocracy is that, as expounded
by Howard Scott, Wayne W. Parrish and 'Frank Arkwright,' it has until
recently been taken seriously," he said.
"My first complaint about technocracy is that no proof of its main
conclusions, namely, that the machine is a menace to men, that laborsaving machinery has caused the present depression, and will shortly make
It worse, has yet been offered. I am quite willing to listen to any alleged
proof. But why be troubled by unproved assertions?
"The technocrats tell us that we are threatened with 20,000,000 unemployed in 'two years' and again 'national bankruptcy in 18 months' (of
which three have passed already) under the 'price system.' but do not tell
us how that system can be abolished in two years, much less how it can be
replaced by something else not yet even formulated. They admit that even
Russia failed to effect such replacement.
"I believe it is true, and I rejoice in it, that we have made increasingly
rapid progress recently. It is partly on that basis that I now look forward to
results exactly the opposite of those claimed by Scott and his followers.
"I do not mean that technological improvement is always good or good
for all. But all the really scientific evidence, so far as I know it, points
unmistakably to the conclusion that labor saving helps labor. The essential
reason is not that machinery creates new demands for labor. The essential
reason is that the products of the new machine are consumed by the laborer
and so increase his real wages.
Scoffs at Their Chart.
"The simple trouble is, I believe, that, however many charts the technocrats may have made as showing the rapid improvement from inventions,
nevertheless, in inferring disaster from this progress they simply do not
know what they are talking about.
"Even their idea that this depression is unique is not justified.
"As I see it the real trouble lies not in too many good things—not in overproduction nor technological improvements—but in overindebtedness and
deflation—the 'debt disease' and the 'dollar disease' combined.
"The usual result of paying off a part of a debt is to reduce the debt;
but the paradox of a depression is that the faster a community liquidates
Its collective indebtedness, the bigger that indebtedness becomes.
"The wheel of commerce is at a dead centre.
"Accordingly, a new scheme (or, rather, the use of an old one) is now
being tried—a scheme to stimulate the buying side of the wheel. Its method
Is to supplement our depleted currency with a temporary circulating medium
known as 'stamp scrip.'
"If used now on a nation-wide scale, this improved stamp scrip plan
would break the back of the depression. New issues of it could go on until
the business men have been stimulated to borrow again, and thus sufficiently
re-enlarge the credit currency of the country—and re-speed it.
"The technocrats are barking up the wrong tree. Their analysis. if what
they write can be dignified by the name of analysis, has behind it, so far as
the record shows, neither authority nor reason—nothing but assertions and
high sounding words, ot which the chief is their chosen name. One scoffing
critic says their chief asset is that technocracy rhymes with democracy!"

Floyd W. Parsons Charges Technocrats with Unprofessional Procedure—Tells Members of National
Automobile Chamber of Commerce Inaccurate
Figures Are Used to Gain Attention for New
Movement.
The fallacies of the new Technocracy movement were
exposed by Floyd W. Parsons in a talk on Jan. 10 before
1,150 leaders of the automobile industry at the annual
Show Dinner of the National Automobile Chamber of Commerce in the Commodore Hotel. "Technocracy, as it now
appears, is a discredited philosophy because of its inaccuracies, exaggerations and unprofessional presentation," Mr.
Parsons charged. He added that "to-day it stands forth as
a carefully timed effort to stampede discontent, to transfer
fear into panic by sensational utterances. It has failed to play
fair with a sorely-pressed nation of anxious people, and those
who have joined with it to publicize their doctrines are justly
open to the charge of being propagandists instead of engineers."
"Their methods," he added, "have aroused suspicions of
plots and rackets, backed by hidden motives. The dignity
of technical research is absent." Mr. Parsons added:
There is a wide gulf of unexplored mental territory separating the trained
engineer and the Technocrat. The two minds tind no common ground on
which to meet when the leader of the new doctrine climbs heavenward and
talks about the "synthetic integration of the physical sciences"; the "determination of functional sequences of social phenomena"; the "metrical
character of the phenomena involved in the functional operation of a social
mechanism" and other similar terms in which the doctrines of technocracy
are couched.

Technocracy's claim to infallibility on the ground that
it represents an integration of physics, chemistry, geology,
geophysics, thermo-dynamics, zoology and biophysics,
biology and physiology was discounted by Mr. Parsons with
the observation that psychology was omitted from the
foundation of the organization's program.
According to Mr. Parsons, the objectives of technocracy
are:




437

The creation of a great "energy state"—an engineering Utopia;
The abandonment of the gold standard;
The abolition of privately owned property;
The removal of the yoke of special interests that enslaves statesmen
and politicians;
The determination of the magnitudes and characteristics of the physical
forces upon which the maintenance and growth of our civilization are
founded;
The setting up of a new kind of reward for work;
The production of goods on a basis of service not profit;
And the establishment of distribution centers where certificates of energy
units may be exchanged for such goods as the individual desires—the
goods being priced in terms of the energy unit.

"The figures of the Technocrats, currently presented,
harmonized instantly with the public's depression mood,"
was Mr. Parsons's explanation of the almost immediate
interest which the Technocracy movement had attracted
throughout the nation. He went on to say:
But these figures overstated the truth in pig-iron production 30-fold
In the manufacture of electric bulbs, 200-fold and in the making of flour,
brick, cigarettes, rayon, automobiles and various other essentials, from
5 to 90-fold.
Instead of the productivity in pig iron having increased 650 times in 50
Years, it has increased 23 times. Instead of a modern brick plant being
able to produce 400,000 bricks per man, per day, very few, even though
highly mechanized, can produce in excess of 2,000 bricks. In the steel
industry, instead of 70-man hours, per ton, the correct figure is 55.

Mr. Parsons described the leader of the Technocracy
movement as a "fanciful figure, vague, idealistic, socialistic,
apparently in earnest and probably honest." Adding, he
said, "He is not an engineer—was associated with a syndicalist movement, worked in a cement-pouring gang at Muscle
Shoals—and was accused of war-time sabotage by the
superintendent of the job."
According to Mr. Parsons, there is nothing particularly
new to the subject of Technocracy—not even the name.
Mr. Parsons credited a California inventor—William H.
Smyth—with having used the word and many of the ideas
incorporated in the present concept of Technocracy in a
series of articles which appeared in a trade publication as
early as 1919.
The speaker declared that the philosophy of Technocracy
falls flat when it assumes that sound conclusions can be
based on fragmentary evidence; that present abnormal unemployment is the result of technological displacement;
that we can predict with accuracy what human beings will
think or do to-morrow; that everything was grand until the
machine came along to upset life and industry; that the demand for goods will soon become stationary; and that the
future can be measured by kilowatts with human nature
left out of the picture.
Large Decrease Noted in Net Ton Miles of Freight
Traffic Handled by Class I Railroads in United
States During First 11 Months of 1932.
Freight traffic handled by the Class I railroads fo this
country in the first 11 months of 1932 amounted to 237,894,992,000 net ton miles, according to reports just received
by the Bureau of Railway Economics and made public
Jan. 16. In reporting this, the Bureau also said:
This was a reduction of 75,590.992,000 net ton miles or 25.1% under the
corresponding period in 1931 and a reduction of 155,203,582,000 net ton
miles or 39.5% under the same period in 1930.
Railroads in the Eastern District for the 11 months period in 1932 reported a reduction of 23.4% in the volume of freight traffic handled compared with the same period in 1931, while the Southern District reported
a reduction of 26.5%. The Western District reported a decrease of 26.9%.
The volume of freight traffic handled by the Class I railroads in November amounted to 21,754,312,000 net ton miles, or a reduction of 3,329.995,000 net ton miles or 13.3% under the same month in 1931, and 10.555,298,000 net ton mans or 32.7% under November 1930.
In the Eastern District the volume of freight traffic handled in November
was a reduction of 103% compared with the same month in 1931, while
the Southern District reported a decrease of 12.8%. The Western District
reported a reduction of 17.5%•

Percy H. Johnston, President of Chemical Bank &
Trust Co., Finds Wave of Hysteria Dying Out—
Views Prompt Readjustment of European Debts
as Essential to World Recovery—Annual Report
to Shareholders.
While not "in favor of cancellation of the foreign debts
due this country," Percy H. Johnston, President of the
Chemical Bank & Trust Co. of New York, declares that "a
prompt readjustment is essential, and the sooner made the
better." Mr. Johnston's views were embodied in his annual
report to the stockholders of the institution on Jan. 18, in
which he said:
Taldng into consideration the times through which we are passing.
the operations of the Chemical Bank & Trust Co. during the past year
were satisfactorily conducted along conservative lines.
The prolonged depression that grips our nation and the entire world
shows little, if any. abatement. There are signs of improved sentiment
and the wave of fear and hysteria that swept over this nation during the

438

Financial Chronicle

past 18 months has about died out. People are beginning to realize that
only by work, economy and saving can we right our condition. We have
been too prone to run to the Government for help. We must return to
the precepts of self reliance and courage of our forefathers and work out
our own salvation. The most important contributing factor to the return
of better times is the necessity to live within our incomes; this applies
with especial force to our nation. States and cities—their budgets must
be balanced. We must abandon the fallacy that a small percentage of
the population can supply the money to operate the Government.
We do not favor the cancellation of the foreign debts due our Government. However, a careful survey of the European situation leads me to
believe that Europe owes more than it can ever hope to pay. If we were
dealing with a commercial concern whose creditors discover that reverses
have been encountered and that the company is indebted for more than
it can pay, the common sense procedure under such circumstances, and
the only procedure followed by sensible business men, would be for the
creditors to meet and agree to an extension of the debts or, in a bad case,
to effect a composition (scaling down) settlement; always arranging the
settlements where possible so as to let the business survive. The European
situation sooner or later will require such a settlement.
The settlement has to do with business rather than politics and our
best informed business men should be delegated to the task. 'A prompt
readjustment is essential and the sooner made the better. Our world
trade is of such great importance that we can well afford to make concessions. The world will continue in turmoil and uncertainty so long as
we drift as at present.

The following is also from Mr. Johnston's report:
The year 1932 was the one hundred and ninth of this bank's history,
and one of the most difficult through which it has passed in this long period
of time.
At this meeting to-day the shareholders are asked to approve the final
act in merging the Chemical Securities Corp. into the bank, by voting
to reduce the bank's capital in the sum of $1,000.000, thereby transferring
this amount to the undivided profits account. As the plan was fully set
forth in my letter to you of Dec. 16, I feel it needless to further comment
on this subject, other than to say that assets of the Securities Corp. approximating $14,500,000 in value, all of a highly liquid nature, have been
transferred to the bank and placed in the bank's special reserve account.
During the entire year money rates were low and the bank pursued a
conservative policy in maintaining an unusual degree of liquidity (averaging above 80%). These conditions prevented the bank from taking
advantage of its potential earning capacity.
The financial statement following this report shows the condition of
the bank as at the close of business Dec. 31 1932 and discloses its strong
and liquid position.
The deposits as of Dec. 31 1932 were larger than at the corresponding
date in 1931. For the year 1932 deposits averaged $26,318,000 less than
those in the year 1931.
After charging to earnings account all expenses, pensions, and charging
off losses and setting up tax and other reserves, the disposition of the
balance of the year's earnings was as follows:
Dividends amounting to 18% on the shares of the bank_ ___$3,780,000.00
Special reserve for contingencies
1,783.256.98
Reduction in book value of banking houses
300,000.00
Subscription emergency unemployment relief
25,000.00
Added to undivided profits
653,669.26
$6,541,926.24
It is with deep regret that I report the great loss the bank has suffered
by deaths during the year
On April 14 1932, Mr. Jesse M. Smith, Advisory Board member (320
Broadway).
On Oct. 6 1932, Mr. Darwin P. Kingsley. Director.
During the year Messrs. Wylie Brown, W. Seward Webb, Charles C.
Putnam and R. J. Whelan retired as Advisory Board members.
Elections to Advisory Boards.
Mr. Charles F. Noyes, President, Charles F. Noyes Co., Inc.
Mr. Benjamin Rosenthal, Executive Vice-President, The United States
Playing Card Co.
Mr. Joseph P. Bickerton, Jr., Secretary & Treasurer, Abbott-Dunning,
Inc.
Mr. E. C. Mills, General Manager, American Society of Composers,
Authors and Publishers.
Mr. C. Morton Whitman was elected Chairman of the Advisory Board
at our 29th St. & 5th Ave. office to succeed the late Darwin P. Kingsley.
Mr. Robert Goelet was elected a member of the Trust Committee to
succeed Mr. Arthur W. Loasby.
Elections to Executive Staff.
Mr. J. A. Bower, Executive Vice-President.
Mr. LeRoy W. Campbell, Vice-President.
Mr. M. D. Howell, Assistant Vice-President.
Mr. W. G. Laemmel, Assistant Vice-President.
Mr. E. 0. Detlefsen, Assistant Secretary.
Mr. Raymond C. Ball, Manager.
Mr. J. D. Magill, Assistant Manager.
... The bank is owned by 13,147 shareholders, an increase of 703
during the year.
There are at present 1,145 members on our staff, of whom 94 are officers,
branch managers and assistant branch managers.

The St. Louis Bank Failures.
Numerous small St. Louis, Mo., banking institutions
have closed since the first of the year, the failures on one
day—Monday, Jan. 16—amounting to seven. In addition
to:the Hamilton State Bank, the closing of which was noted
in last week's issue of the "Chronicle," page 281, the following banks have suspended: The Hodiamont Bank; Park
Savings Trust Co.; Overland State Bank, at Overland,
St. Louis County; Savings Trust Co.; University City Bank
& Trust Co.; West St. Louis Trust Co.; St. Louis National
Bank; Scruggs, Vandervoort & Barney Bank; Twelfth Street
National Bank; Laclede Trust Co.; Chouteau Trust Co.;
Natural Bridgeffrust Co.; Lowell Bank; Grant State Bank;
Sarah-Olive Bank of St. Louis, and the Shaw Bank & Trust
Co.
The Hocliamont Bank was closed by order of its directors
at the close ocbusiness Jan. 4 and-placed in the hands of




Jan. 21 1933

J. B. Norris, State bank examiner, according to the St. Louis
"Globe-Democrat" of Jan. 5. The institution was capitalized at $50,000, with surplus of $7,500, and on Dec. 20 last
reported deposits of $332,312. Mr. Norris was quoted as
saying that the directors gave as the reason for their action
heavy withdrawals to meet tax payments, which had depleted the bank's cash reserves to such an extent that it
was deemed wise to close the institution in order to protect
the depositors and creditors.
The closing on Jan. 11 of the Park Savings Trust Co. and
the Overland State Bank at Overland, in St. Louis County
(the latter a very small bank with capital of $10,000 and
deposits of $136,851) was indicated in the "Globe-Democrat" of Jan. 12, which in regard to the Park Savings &
Trust Co. said in part:
The directorate of the Park Savings Trust Co., 6386 Clayton Road,
which had assets and liabilities listed at $571,946.64, in a statement published on Dec. 30, yesterday (Jan. 11) voted to place the depository in
the hands of the State Finance Commissioner as a result of heavy withdrawals. . . .
In a resolution adopted at the close of the business day it was stated:
"The board of directors of this company deems the same to be solvent
under the laws applicable to banking in the State of Missouri, and to have
sufficient assets to pay its obligations."
The statement published Dec. 30 shows demand deposits of $172,954.08
and time deposits of $125,246.77.

The Savings Trust Co., at 4915 Delmar Boulevard, and
the University City Bank & Trust Co., at 6633 Delmar
Boulevard, both closed on Jan. 12 because of heavy withdrawals, according to the "Globe-Democrat" of the following day, from which we quote in part as follows:
The closing in both cases was to protect depositors. Officials of both
institutions announced steps soon will be taken for reorganization, since
the capital of neither institution is impaired and the likelihood of losses was
held to be remote.
Directors of the Savings Trust Co., of which John J. Dowling is President,
closed at 2:30 p.m. with an announcement reading as follows:
"Due to the closing of several banks in adjacent territory, which caused
an unprecedented withdrawal of funds, the board of directors of the Savings Trust Co. decided temporarily to close this bank in order to protect
depositors.
"Steps for reorganization are now under consideration and at the present
time the institution is in charge of Roy D. Miller, Deputy State Finance
Commissioner."
The University City Bank opened at 8 a.m. yesterday (Jan. 12), but was
closed by order of its directors at 9:05 a.m. W. G. Morgan, President,
and A. A. Nall. Cashier, signed its closing notice. Morgan said the bank's
capital has not been impaired and steps will be taken to reorganize.
The University City Rank had $100,000 capital in its Dec. 10 statement.
It had deposits of $717,398 and total resources of $970,618.
The Savings Trust Co. in its Dec. 10 statement showed $200.000 capital,
$1,714,389 total deposits and $3,013,938.81 total resources.

The West St. Louis Trust Co., located at 4101 Easton
Avenue, and the St. Louis National Bank, 1800 Olive Street,
were closed on Jan. 13 to protect their depositors. Both institutions were members of the Federal Reserve System.
With regard to the closing of these two banks, the St. Louis
"Globe-Democrat" of Jan. 14 said:
Reason for closing the West St. Louis Trust Co. was because of heavy
withdrawals, it was stated. Ben E. W. Ruler is Chairman of the board.
This bank has a capital stock of $200,000 and deposits of $1,583,756,
according to its last statement. Dec. 10.
The St. Louis National Bank, whose President is Thomas N. Karraker,
has a capital of $200,000, deposits of $1.305,196, and total resources of
$2,128.285. according to its statement of Dec. 31.
This bank held a balance of State money amounting to $75,000, which
was secured by $81,000 Government and road bonds.
George Clarkson, President of the Associated Bankers, said last night
(Jan. 13) the majority of the 28 outlying banks within the city which are
members of the Association have availed themselves temporarily of the
provision on savings accounts that 30 days' notice be given for withdrawals up to $100 and 60 days' notice for withdrawals in excess of $100. Similar action was taken Thursday night by the St. Louis County Bankers'
Association. Decision to invoke this rule is up to individual banks.
The Lafayette National Bank & Trust Co. of Luxemburg, St. Louis
County, which joined in the resolution of the St. Louis County Bankers'
Association, announced yesterday (Jan. 13) it would not invoke the rule
restricting withdrawals from saving or checking accounts. This decision
was reached following a meeting of officers and directors of the bank
yesterday.
Members of the Thirty-Ninth Street Business Association last night
adopted a resolution expressing confidence in the officers of banks in their
district.
Elmer Goodenough, President, said members will assist in stopping
unfounded rumors about banks.

The Scruggs, Vandervoort & Barney Bank, situated in
the department store building of the Scruggs, Vandervoort
& Barney Dry Goods Co., at 10th and Olive Streets, closed
its doors on Saturday afternoon, Jan. 14, upon the decision
of its directors, according to an announcement by F. M.
Mayfield, President of the institution. In reporting the
foregoing in its issue of the next day, Jan. 15, the St. Louis
"Globe-Democrat" furthermore said:
The action was taken to protect depositors and the bank now is in the
hands of the State Finance Commissioner. Mayfield asserted he considers
the bank solvent and believes all depositors will be paid in full.
The bank was the smallest in the downtown area and was not a member
of the Clearing House Association. It was closed at 1 p.m. yesterday
(Jan. 14) instead of at 5 p.m.. as has been customary. A notice displayed
read: "Owing to general unrest in St. Louis, this bank will close at 1 o'clock
to day, the legal hour."

Volume 136

Financial Chronicle

The directors met at 4.30 o'clock and decided not to open Monday.
Mayfield also is President of the Scruggs. Vandervoort & Barney Dry
Goods Co., in which the bank is located. Chester J. Prince is Vice-President of the bank.
The statement of the Scruggs, Vandervoort & Barney Bank Dec. 10
listed capital stock of $200,000, surplus of $100,000 and total deposits of
$1.762,641. The bank had loans aggregating $992,586.
Fern E. Willard of Lebanon, Mo., an examiner of the State Finance
Department, will be placed in charge of the bank to-morrow morning
(Jan. 16).

On Monday of this week, Jan. 16, seven banks suspended.
These, as listed in Associated Press advices from St. Louis
on that date, were:
Twelfth Street National Bank capital stock $300,000, deposits $945.383.
Laclede Trust Co., deposits $1,111,013, total resources $1,789,516.
Chouteau Trust Co., deposits $668,835, total resources $1,019,141.
Natural Bridge Trust Co., deposits 8913,951. total resources $1,265,956.
Lowell Bank. deposits $2,457,134, total resources $3,517,290.
Grant State Bank, deposits 81,190.178, total resources $1,718,534.
Sarah-Olive Bank of St. Louis, deposits $174,572, total resources
$425,653.

With reference to the closing of the Twelfth Street National Bank, at 113 Chouteau Avenue, and the Laclede
Trust Co., at 2601 Olive Street, the St. Louis "Globe-Democrat" of Jan. 17 had the following to say in part:
The Laclede Trust Co. was placed In the hands of Deputy State Finance
Commissioner J. B. Norris. who is In charge of closed State banks here.
The Twelfth Street National Bank was placed in the hands of the Comptroller of Currency, with John T. Mars, Deputy National Bank Examiner,
assigned In immediate charge.
With the closing of the two banks yesterday (Jan. 16), Boyle 0. Rodes,
Chairman of the board of the St. Louis County Chamber of Commerce,
yesterday issued an appeal for public confidence in the county's banks.
"In times of distress and unusual economic conditions like the present,
there exists the greatest need for all to co-operate," he said, in part. "Especially in times like these, it is ofttimes impossible for a banking house to
convert all its assets into a liquid condition in a short space of time. As
long as confidence is maintained and the bank's business goes along as usual,
the law of averages will work to the advantage of the bank and the depositors, I. e., deposits and withdrawals will bear the usual relation to each other.
which will assure a continuance of the bank's business."
The Twelfth Street National Bank had as of Dec. 31 capital stock of
$300,000 and deposits of $945.383.
The statement posted on its door announcing the decision to close reads
as follows:
"Although it is the belief of the board of directors of the Twelfth Street
National Bank of St. Louis that all depositors can be paid in full, yet in
view of the uncertain banking conditions in St. Louis, the board of directors
deem it advisable for the protection of all depositors to turn over the affairs
of this bank to the national bank examiner, effective this date." The
statement was unsigned.
Below was a notice from Mars, stating he is in charge.
The bank is not affiliated with any other St. Louis banking institution.
The Laclede Trust Co. showed In its Dec. 10 statement total resources
of $1,789,516; total deposits, $1,111,012; capital, $300.000, and surplus,
$100,000.
The notice posted on its doors read as follows
"By resolution of the board of directors of the Laclede Trust Co., this
bank has been placed in the hands of the State Bank Commissioner for
protection of the depositors." The notice was unsigned.

Associated Press advices from St. Louis on Wednesday,
Jan. 18, reported that the Shaw Bank & Trust Co., another
St. Louis bank, had closed on that day and had been placed
in the hands of the State Finance Commissioner. The
dispatch added:
Its capital stock was $200,000. Total resources were $1,073,934. The
management in its notice of closing said the unrest In St. Louis following
the closing of 16 small banks In St. Louis and St. Louis County made the
action necessary to conserve the interests of depositors.

That Governor Park of Missouri is watching the banking
situation in St. Louis is indicated in the following dispatch
from Jefferson City, Mo., to the St. Louis "Globe-Democrat" on Jan. 14:
Governor Park is keeping in touch with the banking situation in St. Louis
and has been conferring with members of the St. Louis Clearing House Association, Col. Richard Hawes and others. He has requested them to suggest
suitable men for appointment as liquidating officers for the banks that have
closed.
He has also asked them to investigate the qualifications of several applicants for State Finance Commissioner. For the present, at least, there
will be no change in the personnel of that department. Commissioner
D. R. Harrison tendered his resignation to the Governor recently, and was
told the Governor is not ready to make a change.
The Governor is particularly anxious to have named as liquidating agents
for closed banks men well qualified who will wind up the affairs ofsuspended
institutions quickly and with a minimum of expense to the depositors and
stockholders.
For this reason he asked the Clearing House Association of St. Louis to
make recommendations.

ITEMS ABOUT BANKS, TRUST COMPANIES, &c.
The New York Stock Exchange announced Jan. 18, that
arrangements were made for the sale of a membership at
$115,000, the first sale of 1933 and marking an increase of
$12,000 over the last previous sale made Dec. 22.
The sale of a New York Curb Exchange membership was
made Jan. 16, at $30,000, unchanged from the last previous
sale.
At the annual organization meeting of the Chemical Bank
& Trust Company of New York, held Jan. 19, all officers




439

headed by Percy H. Johnston as Chairman of the Board and
President were re-elected, and Gilbert H. Perkins formerly
Assistant Vice-President was elected Vice-President.
The stockholders of the institution at the meeting Jan. 19
approved the plan to merge Chemical Securities Corporation into the bank by voting to reduce the bank's capital in
the sum of $1,000,000 from $21,000,000 to $20,000,000 and
transferring the sum to undivided profits. The proposed
changes were noted in our issue of Dec. 24, page 4332.
William S. Gray, Jr., was on Jan. 19 elected President of
Central Hanover Bank & Trust Company of New York
by the board of trustees at their organization meeting following the annual meeting of the stockholders. George W.
Davison, who retires from the Presidency, was elected
Chairman of the Board, and William Woodward, who has
been Chairman, was elected Honorary Chairman, thus continuing under different titles the management of the last
four years. The new President of Central Hanover Bank
& Trust Company was born in 1897. He served during
the war as a Lieutenant in the Navy and was graduated
from Princeton in 1919. In 1925, he was elected VicePresident of Central Union Trust Company of New York
and since 1929 he has been the Executive Vice-President of
Central Hanover Bank & Trust Company. Mr. Davison
has been President of Central Hanover Bank & Trust Company since 1929 in continuation of his Presidency of Central
Union Trust Company of New York to which he was elected
in 1919 as successor to the late James N. Wallace. Mr.
Woodward became President of Hanover National Bank in
1910 and has been Chairman of the Board of Central Hanover Bank & Trust Company since 1929.
Charles E. Sigler was appointed Treasurer of Central Hanover Bank & Trust Company at this week's organization
meeting of the Board of Trustees. He succeeds the late
H. M. Myrick.
At the annual meeting of stockholders of the Guaranty
Trust Company of New York, on January 18, and presided
over by William C. Potter, President, the following directors,
whose terms had expired, were unanimously re-elected:
George G. Allen, J. Howard Ardrey, Arthur C. Dorrance,
Edward D. Duffield, Charles E. Dunlap, Lewis Gawtry,
Robert W. Goelet, John A. Hartford, Cornelius F. Kelley,
Matthew S. Sloan and Joseph R. Swan. At the annual meet
ing of the Board of Directors following the meeting of the
stockholders, the officers were re-elected for the ensuing
year.
At the annual organization meeting of the Board of
Directors of Chase Harris Forbes Corporation held this
week, the following new appointments were made: Adolphe
H. Wenzell, Vice-President; A. Glen Acheson, Eugene R.
Black, Jr., Francis L. Blewer, F. Fletcher Garlock, John
S. Hardin, Edward H. Robinson, Assistant Vice-Presidents;
H. J. Fitzell, Treasurer; A. S. Hart, Comptroller.
F. B. Whitlock, manager of the Thirty-fourth Street
office of Central Hanover Bank & Trust Company of New
York, was appointed Assistant Treasurer at a meeting of
the board of trustees this week.
Stockholders of Irving Trust Company of New York, at
their annual meeting on Jan. 18 re-elected the retiring Board
of Directors, with the addition of Theodore F. Whitmarsh.
Theodore F. Whitmarsh, Chairman of the Board of
Francis H. Leggett & Company has been elected a Trustee
of The Greenwich Savings Bank of New York City.
At the annual meeting of directors of the National Exchange Bank & Trust Co., Brooklyn, held Jan. 11, Peter
A. Farrar, Cashier, was elected Vice-President and Cashier.
Mr. Farrar has been Cashier of the bank since it was
organized in April 1930, and is also a director of the institution. Other officers were re-elected.
At the annual meeting of stockholders of the Pennsylvania Exchange Bank, New York, held Jan. 10, all directors
were re-elected except Walter A. Ardery and Charles
Passannante who resigned. There are now fifteen members of the board, there being no new members elected to
fill the vacancies.

440

Financial Chronicle

The National City Bank of New York has announced that
on February 1, there will be a revision of interest rates
paid on thrift accounts in its compound interest department. On the first $1,000 of any account the rate will be
3%, and on the balance up to $15,000 the rate will be 2%.
In the New York "Times" of Jan. 17 it was noted:
The change will be the first in the rate on thrift deposits by the National City since Nov. 1 1931, when the interest was raised from 2 to
3%. On Sept. 1 1931, when a prolonged period, of extremely easy money
appeared probable, the bank cut its thrift deposit rate to 2%, being the
last of the big banks to make such a reduction. Soon after, as a result
of the suspension of the gold standard by the Bank of England and the
run on the gold reserves of the United States, money hardened and the
National City Bank restored the 3% rate.
2% interest on
/
Most savings banks in New York State are paying 31
deposits, the average rate for the past year having been 3.73%. Some
banks pay a higher rate on the first $1,000 of a deposit than on the
balance and many have placed restrictions upon the amount of the deposits they will accept for a single account within any quarter.
The National City is the first commercial bank to announce a split
rate on its thrift accounts.

John D. Cosgrove, heretofore First Vice-President of the
First National Bank of Glen Cove, L. I., N. Y., was promoted to the Presidency of the institution at the directors'
annual meeting on Jan. 14, to fill the vacancy caused by
the resignation in November last of Harry L. Hedger to become Treasurer of Nassau County. Howard W. Maxwell, a
director of the bank, was named First Vice-President to succeed Mr. Cosgrove. Other officers of the institution were
reappointed by the directors, as follows: Maurice Stelsel,
Second Vice-President; Mortimer H. Rudyard, Cashier, and
Ralph Pontifex, Assistant Cashier. Mr. Cosgrove, the new
President, who is head of the firm of John D. Cosgrove &
Co., contractors, is also a Vice-President and a director of
the State Bank of Sea Cliff, L. I.
The First National Bank in Mamaroneck, Mamaroneck,
N. Y., the only commercial bank in the village, closed its
doors on Monday of this week, Jan. 16. At a meeting held
the previous Saturday night, the directors had decided on
the action, and on Monday morning John R. Watts, a Federal Bank Examiner, took charge of the bank's affairs.
The institution, which was formed the early part of last
year by the union of the First National Bank & Trust Co.
with the Mamaroneck Trust Co., has about 3,500 depositors.
We quote below from the account of the closing as contained
In Mamaroneck advices, on Jan. 16, to the New York
"Times":
Officials of the bank this afternoon ascribed its troubles to refusal of the
village of Mamaroneck last January to carry through an agreement to buy
the building, of the First National Bank & Trust Co., made preliminary to
the consolidation of the two then existing banks, the First National and the
Mamaroneck Trust Co. When the condition of one of the banks became
precarious at that time, the bankers told the Village Trustees that the
danger could be overcome by a merger if the village would buy the building
of the First National for $275,000, the bankers, in return, to buy some
village bonds. The Board approved the proposal, planning to use the
building as a village hall, but taxpayers brought suit in the Supreme
Court and halted the purchase. The banks were merged, but without the
$275,000 in cash that had been expected. The buildings, which housed
the two institutions were valued valued together at about $406,000.
It was explained to-day (Jan. 16) that the books of the bank showed an
excess of assets over liabilities for the year ended on Dec. 31, but a shortage
of about $200,000 in necessary cash.
According to Lawrence S. Greenbaum, counsel for the bank, its last
public statement last Saturday (Jan. 14) showed total assets of $3,839,131.
Included in its liabilities was $416,466 for capital stock, surplus, profits
and reserves, he said.
A contributing cause of the closing, the bankers said, was the fact that
many depositors apparently were living on their savings, thus continually
drawing on the deposits, which dropped about $1,300,000 last year.
Almost every family and business man in the village was affected by the
closing. The bankers said interest accounts alone amounted to more than
$700,000. Among the deposits are about $250,000 in municipal and school
funds. These are those of the village of Mamaroneck, with about $141,000;
the Rye Neck Board of Education, with $88,545; Mamaroneck School District, with $20,000 of litigated building fund moneys; the Westchester
Joint waterworks, with $29,000, and the town of Mamaroneck, with
about $5,800.
Officials of the bank are: Theodore F. Flandreau, President; F. Milton
Berry, Vice-President; George H. Coffin, Vice-President and Assistant
Trust Officer; William J. Ender and Mervyn Connor, Vice-Presidents;
Leo N. Orsino, Cashier; Daniel R. Thompson and William Haggerty,
Assistant Cashiers, and P. Brewer, Trust Officer.
Bankers said this was the first bank failure in Westchester in 25 years.
Arthur H. Titus, President of the Westchester County Clearing House
Association, of which the Mamaroneck bank was not a member, said no
other bank in the county would be affected by the failure here.

Mamaroneck advices, on Jan. 16, to the New York "Herald
Tribune," gave additional information regarding the failure,
as follows:
An officer of the closed bank said it MB closed because its cash on hand
was not up to Federal requirements, but that the institution was not
insolvent in the generally accepted sense of the word. Its assets exceeded
its liabilities, he said, by about $416,000. There was slight chance that
the bank would be reopened immediately, however, according to another
officer of the institution. It was the only commercial bank in the village.
. . . The exact amount on deposit is not known, but it is said to be
about $1,500,000.




Jam 21 1933

Arthur H. Titus, President of the Westchester County Clearing House
Association, and the Westchester member of the District Advisory Board of
the Federal Reconstruction Commission, said that the bank had done everything possible to protect the interests of the community, but that the
depositors had withdrawn their deposits to such an extent during the last
year that the deposits were about halved and it had "become inadvisable
to continue."

A dispatch from Washington, D. C., on Jan. 16, to the New
York "Times," contained the following:
The First National Bank in Mamaroneck borrowed $779,951 from the
Reconstruction Finance Corporation. Of this amount, $400,000 was
obtained in August and September and shown in the Corporation's reports
to Congress for those months. The remainder was advanced before July 21
1932, from which date the Corporation began making detailed reports to
Congress on all loans. The money was provided at 51,i%, and It still considered by the Corporation to have been a good investment, in view of
the collateral securing the loan.

The New York "Times" of Wednesday, Jan. 18, stated
that H. W.Meeker had been appointed receiver of the closed
institution by the Comptroller of the Currency and was
expected to take up his duties the following day. The
"Times" also said, in part:
As an aftermath of the closing, there were many withdrawals of deposits
from the Union Savings Bank, situated across the street from the First
National. A considerable number of the deposits withdrawn were transferred to postal savings accounts at the Mamaroneck post-office. Weste.hester savings bankers promptly rallied to the support of the Union Savings Bank by issuing a statement, signed by the ten other savings banks in
the county, with aggregate reserves of 8135,000,000, pledging a full measure
of aid to the institution and declaring it to be in excellent condition
and under sound management.

Directors of the Marine Trust Co. of Buffalo, N. Y., at
their annual meeting on Jan. 10, made two promotions in the
personnel of the Institution, according to the Buffalo
"Courier" of Jan. 11, advancing Clarence M. Brobst to an
Assistant Treasurer, and Clifford H. Cox to Trust Officer.
The "Courier" went on to say:
Mr. Brobst has been with the Marine since 1931, coming to the bank as
an industrial analyst from White, Weld & Co. of New York. He was
formerly with the Bankers' Trust Co., and also with the American Telephone
& Telegraph Co. He was at one time connected with the Babson Statistical
organization. Mr. Brobst is an alumnus of Lafayette College. He served
overseas with the 28th Division. . . .
Mr. Cox has been engaged in trust work with the bank since 1925. His
present duties are with the personal trust division of the trust department.
He was with the Bank of Nova Scotia in Canada several years before he
came to Buffalo Trust Co. in 1924. He is a member of the Junior Chamber
of Commerce. . . .

All the other officers, headed by George F. Rand, were
reappointed by the Board and no change was made in the
directorate at the stockholders' meeting held previously on
the same day.
On Jan.7 the Board of Trustees of the Erie County Savings
Bank'of Buffalo, N. Y., announced the election of one of its
members, Cyril F. Ginther, as Second Vice-President of the
Institution. Mr. Ginther succeeds Robert S. Young, who
recently resigned after 58 years' active service with the bank.
The Buffalo "Courier" of Jan. 7, from which this is learnt,
continuing, said:
Mr. (anther has been a member of the Board of Trustees of the bank
since August 1931, when he was elected to succeed his father, George C.
Ginther.
Born in Buffalo, Dec. 23 1882, Mr. Ginther attended the Buffalo public
schools and Canisius High School. He later entered Georgetown University
where he was graduated in 1903 with an A.B. degree. Following this,
he entered the Buffalo Law School and was admitted to the bar in 1907.
For a number of years be has been associated with J. M. Erickson & Co.,
investment bankers, and is Vice-President of that organization.

At the annual meeting of the directors of the First National
Bank of Boston, Mass., held Jan. 12, Rogers D. Clark, heretofore an Assistant Cashier of the institution, was advanced
to Cashier, to fill the vacancy caused by the recent death
of Bertram D. Blaisdell, according to the Boston "Transcript" of that date. The following named officers were
reappointed: Chairman of the Board, Daniel G. Wing;
Vice-Chairman, Bernard W. Trafford, and President, Philip
Stockton. The paper mentioned went on to say:
Rogers D. Clark, new Cashier of the First National Bank, was born in
Salem in 1891. He was educated in the Salem schools, Highland Military
Academy, Worcester, and Trinity College, Hartford.
In 1911 he entered the employ of the Old Colony Trust Co., where he
became Manager of the Credit Department in 1926 and Assistant Treasurer
In 1928. After the merger of the Old Colony Trust Co. with the First
National Bank of Boston, in 1929, he became Assistant Cashier of the
latter institution.

Directors of the State Street Trust Co. of Boston, Mass.,
at a meeting held this week, appointed Clement W. Deasy
an Assistant Treasurer, according to the Boston "Transcript"
of Jan. 17, which went on to say:
Mr. Deasy was associated with the National Union Bank at the time
it was merged with the State Street Trust Co. in 1925.
Walter F. Pickett was reappointed Treasurer; Ernest E. Jobling, Frederick S. 3fillett, Almon B. Thorn and George A. Hill were reappointed
assistant treasurers.

Volume 136

Financial Chronicle

441

Trustees of the Hartford-Connecticut Trust Co. of HartAt the annual meeting of the directors of the People's
ford, Conn., at their annual meeting on Jan. 12, advanced
Bank & Trust Co. of Passaic, N. J., Arthur C. Way was
John B. Byrne, a Vice-President for the past five years, to appointed a Vice-President in charge of the loan and credit
the Presidency of the institution, and made several other division of the institution, while Howard A. Herty was made
promotions, as follows: To be Assistant Treasurers, Noel an Assistant Secretary, according to a dispatch from Passaic
J. Belcourt and Trubee S. Howard; to be Trust Officers, on Jan. 12 to the New York "Times."
Edwin W. Marvin and J. H. Bartholomew Jr.; to be
William H. Fawcett, heret-ofore an Assistant Cashier of
Auditor, Oscar Wegman ; to be Assistant Auditor, Oran S.
Parker. In noting the above, the Hartford "Courant" of the First National Bank at Pittsburgh, Pittsburgh, Pa., was
Jan. 13 had the following to say, in part, regarding the promoted to be a Vice-President at the annual meeting of
the directors on Jan. 11, and Hubert E. Smith was advanced
banking career of the new President:
John B. Byrne, the newly-elected President of the Hartford-Connecticut to an Assistant Cashier, according to the Pittsburgh "Post
Trust Co., is recognized as one of the leading bankers of Connecticut. He Gazette" of Jan. 12, which, continuing, said:
also enjoys a reputation among the bankers of New England. .
Fawcett started with the farmer People's National Bank. Smith also
Mr. Byrne is a member of the Executive Council of the American Bankers' was associated with the People's
National Bank prior to its consolidation
Association and the Federal Legislative Council, the two leading associa- with the First National.
tions of the banking world. . . .
At this time Mr. Byrne is serving as Secretary of the New England
The Pennsylvania State Banking Department on Jan. 11
Council. He is a Past President of the Connecticut Bankers' Associaapproved the formation of the Stroudsburg Security Trust
tion. . . .
Mr. Byrne began his banking career at the First National Bank in
Co. of Stroudsburg, Pa., through the consolidation of the
Putnam (Conn.) in 1905, serving in various capacities in that institution.
He resigned to become an examiner for the Connecticut Banking Depart- Security Trust Co. of Stroudsburg and the Stroudsburg
ment, serving In that capacity for five years. He was made Deputy Bank Trust Co., according to Harrisburg, Pa., advices by the
Commissioner in 1922 and received his first appointment as Bank Com- Associated Press on Jan. 11.
missioner from then Governor Everett Lake. He was reappointed by Governors Templeton and Trumbull, resigning during his second term to
The Millerstown Deposit Bank at Chicora, Butler County,
become Vice-President of the Hartford-Connecticut Trust Co. . . .
Mr. Byrne succeeds in the Presidency of the Hartford- Pa., a private institution, failed to open for business on
Connecticut Trust Co. Nathan D. Prince, who resigned in Jan. 12, according to Associated Press advices from Butler,
order to become President of the Capitol National Bank & Pa., on that date, which added:
Judge Thomas W. Watson appointed the Butler County National Bank,
Trust Co. of Hartford.
the Butler Savings & Trust Co. and the Union Trust Co., all of Butler,
to liquidate the bank's assets.
Henry J. Myers, President, said "we expect to liquidate and pay 100
It is learnt from the Newark "News" of Jan. 17 that
cents on the dollar without loss to depositors."
William A. Shaw, President of the Shaw Electric Co. of Newark, N. J., was appointed a Vice-President of the Montclair
On Jan. 12 the Comptroller of the Currency granted a
Trust Co. of Montclair, N. J., at the recent annual meeting charter
to the First National Bank in Ligonier, Ligonier,
of the directors. He succeeds J. M. Connor, who resigned Pa., with
a capital of $100,000. The new bank succeeds
because his home is no longer in Montclair. Mr. Shaw, the Ligonier
National Bank. C. S. Marvel is President and
who was born in New Castle, Pa., has been a director of the C. G. Gonder,
Cashier.
trust company for the past five years and a member of its
The
Merchants-Citizens N-ational Bank & Trust Co. of
executive committee for the last eight months. No other
changes, it was stated, were made in the official personnel Allentown, Pa., on Jan. 11 changed its name to the Merchants National Bank of Allentown.
of the institution.
The following changes were made in the personnel of the
National State Bank of Elizabeth, Elizabeth, N. J., at the
annual meeting of the directors on Jan. 16, according to
advices from that city to the New York "Times." John Kean,
heretofore Vice-President of the institution, and a son of
United States Senator Hamilton F. Kean, was promoted to
the Presidency to succeed his uncle, the late Julian H. Kean;
Walter H. Wetton, Cashier for many years, was advanced to
Vice-President and Trust Officer, and Farris de G. Saphar,
heretofore an Assistant Cashier, was promoted to the
Cashiership. Miller C. Earl (whom Mr. Wetton succeeds
as Trust Officer), who has been connected with the bank
for 47 years, was retired at his own request, but will continue with the institution in an advisory capacity, it was
stated.
Thomas N. McCarter, formerly Chairman of the Executive
Committee of the Fidelity Union Trust Co. of Newark,
N. J.,
became Chairman of the Board of Directors at the annual
meeting of the directors on Jan. 12, "thus continuing
the
McCarter tradition and influence in the bank." Mr.
McCarter succeeds William Scheerer, who retired on Dec. 31 last
after 59 years of service with the bank and its predecessors.
In noting the above, the Newark "News" of Jan. 12, continuing, said:
Mr. McCarter became Chairman of the Executive Committee of the
Fidelity Union Sept. 11 1931, following the death of his brother, Uzal
IL,
who was President. On that date J. Henry Bacheller was elected to the
Presidency. The new office of Chairman of the Executive Committee
was
created for Mr. McCarter, and Mr. Scheerer, who was to retire in December
1931, consented to remain as Chairman of the Board until the end of 1932.
As a result of the present election the office of Chairman of the Executive
Committee is abolished, and the direction of the bank is in the hands of
Mr. McCarter and Mr. Batcheller.
Mr. McCarter will continue as President of the Public Service Corp. of
NeW Jersey, which he organized in 1903.
Mr. McCarter is in point of service the oldest member of the Fidelity
Union Board and is a director of the Chase National Bank, the Fidelity
Union Title & Mortgage Guaranty Co., American Superpower Corp., United
Gas Improvement Co., and the United Corp.
Directors of the Trenton Trust Co. of Trenton, N. J., at
their annual meeting on Thursday, Jan. 12, gave the additional title of Vice-President to Alan W. Bowers and W.
Harry Bloor, Treasurer and Assistant Trust Officer, respectively, of the institution, according to Trenton advices
on Jan. 12 to the New York "Times."




As of Jan. 14 last the Mon- roe County National Bank &
Trust Co. of East Stroudsburg, Pa., changed its title to the
Monroe County National Bank of East Stroudsburg.
William L. Beale, Real Estate Officer of the American
Security & Trust Co. of Washington, D. C., was advanced
to a Vice-President, while continuing as Real Estate Officer,
at the organization meeting of the directors on Jan. 17,
according to the Washington "Post" of the following day.
Mr. Beale went to the company on Sept. 15 1919 as Real
Estate Officer, having served prior to that time for six
years as Assistant Assessor of real estate for the District of
Columbia, being appointed to that position by the Board
of Commissioners under the Wilson administration. The
"Post" went on to say in part:
Mr. Beale has been very active in real estate circles during his residence
in Washington and association with the trust company, serving for two
years as Chairman of the Appraisal Committee and for three years as
Director of the Washington Real Estate Board. He is at the present time
Chairman of the Legislative Committee of that Board. Mr. Beale is also
a member of the Citizens Joint Committee on Fiscal Relations between the
United States and the District of Columbia.
He was born in Mason County, W. Va., coming to Washington in 1903
as local purchasing agent and business manager for a contracting company
in connection with the terminal improvements of the Pennsylvania RR.
Co. After serving in that capacity until 1907, he became associated with
the J. H Bradley Co.. Inc.. until his appointment as Assistant Assessor
In 1913.
All other officers of the Company, headed by Corcoran
Thom, as President, were reappointed.
Hugh G. Whitehead, for- merly Vice-President, Trust
Officer and Cashier of the Virginia National Bank of Norfolk,
Va., was relieved of the Cashiership and reappointed VicePresident and Trust Officer at the annual meeting of the
directors on Jan. 11, and W.B. Wyatt, heretofore Assistant
Cashier and Assistant Trust Officer, was advanced to
Cashier, while continuing as Assistant Trust Officer, according to the "Virginia Pilot" of Jan. 12. All other officers of
the Virginia National Bank, headed by A. W. Brock as
President, were reappointed. With regard to the new
Cashier, the paper mentioned said:
Mr. Wyatt, a native of Portsmouth. Va., has been
Assistant Cashier
of the Virginia National Bank since Jan. 20 1926. He started
his banking
career as a runner with this bank in 1915. . . .
In voting to promote Mr. Wyatt to the position of Cashier the directors
paid tribute to his efficient and faithful service with the
which
warranted promotion at a time when promotions in anyinstitution
business are not
the order of the day.

442

Financial Chronicle

The Union Savings Bank & Trust Co. of Steubenville,
Ohio, was reopened for business on Jan. 3 last after having
been closed since October 1931, with Mrs. Wilma Sinclair
Le Van,former Ohio Republican National Committeewoman
as President, according to Steubenville advices on that date
to the Pittsburgh "Post Gazette," which went on to say:
The bank is one of the chief enterprises of the Sinclair family, Mrs.
Le Van being a daughter of one of the founders. When heavy withdrawals ate up its cash reserves, the board of directors gave up and allowed
It to close. Then Mrs. Le Van began utilizing every possible means of
rounding up the necessary cash reserve required to reopen the institution.
Citizens rallied to her aid and the fight was kept going in spite of repeated
rebuffs.
A plan was prepared by which 90% of the stockholders agreed to cooperate through not selling or transferring their stock before 1936, waiving
rights to dividends. This plan was approved by the Jefferson County
Common Pleas Court, the State Banking Department, and the Reconstruction Finance Corporation, the latter giving its approval in the form
of a loan of $435,000. The bank resumed business yesterday (Jan. 3)
with a capital of $350,000 and a surplus of $85,000.

The closing of this bank on Oct. 2 1931 was-noted in our
issue of Oct. 10 1931, page 2380.
Francis R. Mann, Cashier of the City National Bank of
Tiffin, Ohio, for the past 10 years, was promoted to Executive Vice-President of the institution by the directors on
Jan. 14, according to a dispatch from that place on the
date named, to the Cleveland "Plain Dealer," which added:
He will be succeeded Jan. 14 as Cashier by Frank D. Ward, Assistant
Cashier of the Tiffin Savings Bank. Judge George E. Schroth was re-elected
President.

The Ohio State Banking Department on Jan. 14 took over
for liquidation the Bettsville Banking Co. at Bettsville.
Diminishing business was given as the reason. A dispatch
from Bettsville, on the date named, printed in the Toledo
"Blade," reporting the above, went on to say:
The bank carried a capital stock of $25,000, and its last report showed
resources of $138,572. W. J. Clara is President and G. J. Gam Cashier.

At the annual meeting of the directors of the SpitzerRorick Trust & Savings Bank of Toledo, held Jan. 14, the
following changes were made in the bank's personnel to fill
vacancies caused by the recent death of Carl A. Mathias,
who was Cashier, Secretary and Treasurer of the institution,
according to the Toledo "Blade" of Jan. 16. Ceilan H.
Rorick, Trust Officer, was given the additional title of
Secretary; John Houk was advanced to Cashier and Treasurer, and Robert F. Neafie was promoted to Assistant
Treasurer and Assistant Cashier. Other officers of the bank,
headed by Horton Rorick, President, were re-appointed.
The paper mentioned furthermore said:
Mr. Houk, who has been with the bank for 10 years, is one of the younger
bank officials here. He was with the Rainbow Division In the World War,
and has served as President of the Toledo Chapter of the American Institute
of Banking. Mr. Neafie has been with the bank five years.

Stanley Field, formerly Chairman of the Executive Committee of Continental National Bank & Trust Co.of Chicago,
Ill., was made Chairman of the Board of Directors of the
institution at the directors annual meeting held Jan. 13,
succeeding George M. Reynolds who retired the previous
week after more than half a century of active banking. Mr.
Reynolds continues with the institution as a, director. In
addition to Mr. Fields advancement to the Chairmanship,
several other promotions were made in the bank's personnel
by the directors: Reuben G. Danielson, Cashier, was elected
Vice-President and Cashier in the commercial department;
Monroe F. Cockrell and Joseph L. Overlock, Second VicePresidents, were raised to full Vice-Presidents; Hiram R.
Castles, William H. Gilkes and Carl L. Johnson, Assistant
Cashiers, were made Second Vice-Presidents, and John F.
Manion was made an Assistant Cashier.
In the trust department promotions were made as follows:
Charles H. Binney and F. E. Musgrove, Second VicePresidents, were made full Vice-Presidents, and W. R.
Bennett, formerly Second Vice-President of the Continental
Illinois Co. was elected to a similar position with the bank.
The Chicago "Tribune" of Jan. 14, from which the above
information is obtained, had the following to say in regard
to the new Chairman of the Board:
Mr. Field's selection as chief executive of the largest bank In the country
outside of New York City climaxes a banking career which began in 1913
when he was made a director of the Illinois Trust Co.
Mr. Field, along with Mr. Leavell, Continental's President, has been the
directing force in the bank's management for several months. It was under
their direction that the Continental became a National bank late last year.
Mr. Field has been Chairman of the bank's Executive Committee since
March last year. He assumed that position when George M. Reynolds resigned to resume the position of Board Chairman from which his brother,
Arthur Reynolds, had retired. Prior to that time Mr. Field was a director




Jan. 21 1933

and Chairman of the Advisory Committee. It is only in the last two years,
however, that he has come to the front as an active figure in the bank's
management.
Mr. Field's most Important banking had been as a principal negotiator in
1929 of the merger of the Continental National Bank and the Illinois Merchants Trust Co. That consolidation was Chicago's most important financial union. He was one of the small group of influential men who brought
about the merger on March 18 1929. Mr. Field had had similar experience
in 1918 when he played an active part in the negotiations which led to the
consolidation of the Illinois Trust with the Merchants Loan & Trust Co., a
consolidation which subsequently included the Corn Exchange National
Bank under the title of the Illinois Merchants Trust Co.
As head of the building committee of the merged banks he was largely
responsible for the erection of the Illinois Merchants' Bank building, which
now houses the Continental Illinois National,
Mr. Field's earlier business career was with Marshall Field & Co. He
came to this country in 1893 from Manchester, where he was born in 1875.
He became a messenger boy in his uncle's business organization. He worked
his way up through the wholesale department of the business and was
elected First Vice-President of Marshall Field & Co. in 1906. He retained
this office until 1918. He gave up this job after he returned from France,
where he had served as director of all purchasing, warehousing and transportation for the American Red Cross.
He has been prominent in civic affairs. His name has been associated
with many charitable projects. His other activities include the Field museum, of which he has been a director since 1906 and President since 1908.
He selected the site for the museum and started construction before he left
for France in 1917.
Mr. Field has been a director of many large corporations and at the
present time is a board member of the following concerns; Marshall Field
& Co., Illinois Central RR., Commonwealth Edison Co.; Peoples Gas
Light & Coke Co., Public Service Co. of Northern Illinois, and a trustee
of the Mutual Life Insurance Co. of New York. He is a director in the
Continental bank as well as Its affiliate, the Continental Illinois Co.
He is a member of several leading Chicago and New York clubs and at
present is serving as President of the Chicago club. . . .

According to the following dispatch from Bloomington,
Ill., on Jan. 12 to the Chicago "Tribune," two defunct
Illinois banks were to pay second dividends:
The State Bank of Kempton at Kempton will payTa second dividend
of 15% to depositors, a total of $22.951.96. The Perry State Bank of
Perry, Ill., also will pay a second dividend. It amounts to110%, or $6.675.13. Both banks closed nine months ago.

At the annual meeting of the directors of the Winnetka
State Bank of Winnetka, Ill., on Jan. 16, Clarke Washburne, formerly President of the institution, was made
Chairman of the Board of Directors; Edward C. Haase,
heretofore Cashier, was promoted to the Presidency to succeed Mr. Washburne, and George W. McKinney, formerly
Assistant Cashier, was advanced to the Cashiership to succeed Mr.Haase,according to the Chicago "News" of Jan. 17
Sanborn Hale was reappointed a Vice-President.

Closing of the Farmers' National Bank of Taylorville at
Taylorville, 111., was reported in a dispatch from Chicago
yesterday, Jan.20, printed in the New York "Evening Post"
of tl'at date, which added:
As of Jan. 19, the bank had deposits of 81,275,000, capital of $100,000
and surplus of 810.000.

The closing of the First National Bank of Wheaton, Ill.,
was reported in a press dispatch from Chicago on Jan. 19,
printed in the New York "Sun" of that date. The bank, it
was stated, at the time of the closing had total deposits of
$431,030, capital of 55,000 and surplus of $12,000.
Associated Press advices from Rock Island, Ill., on Jan. 16
reported that a two-week banking holiday had started on
that day in Rock Island, Moline and East Moline (all in
Rock Island County), under proclamations of the Mayors
of those cities. Six banks in the three cities were affected.
The dispatch went on to say:
The proclamation explained the purpose of the holiday as a measure to
preserve the stability of the financial and business institutions, and that
It was resorted to because of the beneficial results by various other cities
during the past 18 months, when public apprehension and uncertainty
seemed to call for action to protect the individual citizen and the common
welfare.
It was not expected that business houses would close under the holiday
plan. Davenport, Iowa, banks across the river, were not affected.

The closing of a small Illinois bank, located at Mendon,
on Jan. 16 was reported in the following advices from Mendon to the New York "Times":
The Hendon State Bank, with deposits around $300,000, failed to open
this morning.

Herbert R. Wilkin was appointed Senior Vice-President of
the Union Guardian Trust Co. of Detroit, Mich., at the
annual directors' meeting, which followed the annual meeting of stockholders on Jan. 11, according to the Detroit "Free
Press" of Jan. 12. Mr. Wilkin has been a Vice President
of the company since September. All other officers were
re-elected, it was stated.
P. P. Edwards and E. R. Ormsby were promoted to VicePresidents of the First Wisconsin National Bank of Milwaukee, Wis., at the annual meeting of the Board of Direc-

Volume 136

Financial Chronicle

tors, held Jan. 12, while Joseph W.Simpson Jr. was advanced
to an Assistant Vice-President.
Mr. Edwards has been with the First Wisconsin organization since 1921,
when he became associated with the First Wisconsin Co. In 1927 he
joined the First Wisconsin Trust Co. as Vice-President, and in January
1928 was made an Assistant Vice-President of the bank.
Mr. Ormsby has been with the bank since 1905. He was made an
Assistant Cashier in 1921, and has been an Assistant Vice-President
since 1928.
Mr. Simpson started with the Bankshares group in 1928 as a member
of the staff of the Mechanics' National Bank of Milwaukee. He was made
an Assistant Cashier on the First Wisconsin Bank in October 1929.

All the other officers of the First Wisconsin National
Bank, First Wisconsin Trust Co., and First Wisconsin Co.
were reappointed. Walter Kasten is President of the First
Wisconsin National Bank and Chairman of the Board of
the First Wisconsin Trust Co. and the First Wisconsin Co.,
while George B. Luhman and Robert W. Baird are Presidents, respectively, of the First Wisconsin Trust Co. and
the First Wisconsin Co.
It is learnt from the Detroit "Free Press" of Jan. 13 that
the Depositors' State Bank, a new institution formed by
the merger of the Northville State Savings Bank and the
Lapham State Savings Bank of Northville, Mich., which
closed in 1931, will open in Northville on Jan. 28, according
to an announcement made Jan. 12. The paper mentioned
went on to say:
The new organization has been approved by 85% of the depositors of
the defunct institutions. Officers and directors will be John A. Boyce.
President and Cashier; C. W. Wilber and E. H. Lapham, Vice-Presidents
Harry B. Clark, D. P. Yerkes, Edmund Beard, Roy M. Terrill, G. Carmi
Benton, L. C. Stewart, Alex Christensen and Frank Hamilton. The bank
will be capitalized at $90,000.

Three small Michigan banks have been closed since the
first of the year, according to the "Michigan Investor" of
Jan. 14; viz., the Granville State Bank at Granville, Roseville
State Savings Bank at Roseville, and the Churchill & Webber
Bank, a private institution, at New Era. The paper mentioned said:

p Two receivers and one custodian have been appointed for small banks

that closed since the first of the year. William B. Daley of Grand Rapids
was appointed temporary receiver of the Grandville State Bank; E. E.
Kay, former Cashier, appointed custodian of the Roseville State Savings
Bank, and Daniel W. Parsons of Shelby has been appointed receiver of
the Churchill & Webber private bank at New Era.
-•---

Ashland, Wis., advices on Jan. 17 by the Associated Press
stated that The Northern National Bank of that place had
closed on that day. The dispatch added:
Posted notice stated the closing was for "an attempt to reorganize."

The First National Bank of Steele, N. C., captalized at
$25,000, was placed in voluntary liquidation on Dec.28 1932.
It has been succeeded by the Bank of Steele.
—•-__
Advices by the Associated Press from Muscatine, Iowa, on
Jan. 16 stated that a business holiday of three weeks in
Muscatine had been proclaimed on that day by Mayor Herman B. Lord, and that directors of the First National Bank
and Hershey State Bank had issued statements to the effect
that their institutions would remain closed. The dispatch
went on to say:
The Muscatine State Bank was open as usual, however,
and an official
of the bank said this policy would continue.

According to Associated Press advices from Lincoln, Neb.,
on Jan. 9, the Greenwood State Bank at Greenwood, Neb.,
of which P. L. Hall was President, closed for reorganization
on that day. The dispatch continuing said:
pt The State Banking Department said the action was taken by officers

and directors, and that Examiner J. F. McLain was placed in charge
for
the Department.
The capital stock was $25,000, surplus $5,000, and deposits about

$95.000.

Other officers were E. A. Landon, Vice-President, and E. 0.
Miller;
Cashier.

The Kansas State Banking Department on Jan. 11 announced the closing on that day of the Dorrance State Bank
at Dorrance, Kan., by its directors, according to Associated
Press advices from St. Mary's, Kan., on Jan. 12, which,
continuing, said:
The closing was attributed to depleted reserves, the Department's records
said. The Oct. 7 statement of the bank listed; Capital stock, $17.500;
surplus, $3,500; deposits, $60.906; borrowed money. $2,392; loans, $66,958,
and resources, $86,582.

By order of its directors, the Farmers' State Bank of
Wichita, Kan., did not open for business on Jan. 16, pending
efforts toward reorganization of the institution, according
to advices by the Associated Press on that date, which added:
No statement of the bank's condition was given except that it had
deposits of $700,500 and assets exceeding $1,000,000. The bank was
organized in 1919.
•--.




-

443

Closing of the First National Bank of St. Mary's, Kan.,
on Jan. 12 was indicated in the following Associated Press
dispatch from that place on the date named:
The First National Bank of St. Mary's was closed to-day. A sign posted
on the front door announced that it had been closed by order of the Board
of Directors and affairs of the bank placed in the hands of the National
Banking Department.

Effective Dec. 31 1932, the First National Bank of Paden,
Okla., went into voluntary liquidation. The institution,
which was capitalized at $25,000, was absorbed by The
Prague National Bank at Prague, Olda.
Associated Press advices from Flat River, Mo., on Jan. 9,
reported that the Miners' & Merchants' Bank and the Commercial Bank of Flat River and the Bank of Desloge, at
Desloge, Mo., near Flat River, were closed on that day
after runs which started when the National Lead Co. announced it would suspend operations in that section. The
dispatch went on to say:
The Miners' & Merchants' Bank was the first to close, followed shortly
by the Desloge Bank. The Commercial Bank then closed for an announced
"period of 80 days to avoid further depletion of available oath."
The Miners' & Merchants' Bank, according to the Dec. 10 statement,
had deposits of $505,728.67 and total resources of $731,419.32. A loan of
$97,645.64 had been obtained from the Reconstruction Finance Corporation.
Edward Griffin was President and W. B. Massey, Cashier.
The Commercial Bank had deposits of $209,660.54 and resources of $292,811.72. H. W. Buckley was President and Charles Pratt, Cashier.
The Bank of Desloge had deposits of $264,375.30 and resources of $374,480.77. The closings leave Flat River and Desloge without a bank.

The Board of Directors of the Mercantile-Commerce Bank
& Trust Co. of St. Louis, Mo., at its annual meeting on Jan.
9, advanced W. L. Hemingway, who had been Executive
Vice-President for the past year, to the Presidency, to succeed John G. Lonsdale, who was made Chairman of the
Board of Directors. Mr. Lonsdale succeeds in the Chairmanship George W. Wilson, who in turn was named Chairman of the executive committee, a new office created by the
stockholders at their meeting held previous the same day.
The directors also promoted E. L. Black from an Assistant
Vice-President to a Vice-President. The St. Louis "GlobeDemocrat" of Jan. 19, from which the above information is
obtained, continuing said, in part:
Action of the Board had been expected in financial circles for some
time, and follows the recent appointment by the Federal Court here of
Mr. Lonsdale as co-receiver for the St. Louis-San Francisco Railway. Mr.
Lonsdale has been giving much of his time to that position.
Mr. Hemingway, who is 52, came to St. Louis in 1919 to become VicePresident of the former National Bank of Commerce, which was merged
with the Mercantile Trust Co., in the spring of 1929 forming the MercantileCommerce Bank & Trust Co. He previously had been President of the
Mercantile Trust Co. of Little Rock, Ark., for four years.
While with the National Bank of Commerce, Hemingway personally
supervised the organization of its investment affiliate, the Federal Commerce Trust Co., and he served as Its President until the merger in
1929. He also became President of the Mercantile-Commerce Co., the
investment affiliate of the consolidated bank, a year ago.
During the world war he served as State Chairman of the Liberty loan
organization in Arkansas, and in recent months he has been head of the
St. Louis division of the Reconstruction Finance Corporation. He is
Treasurer of the St. Louis Chamber of Commerce and a trustee of the
Vanderbilt University.
The latter institution is his alma mater, Hemingway having been graduated there in 1900. His first position, at the age of 20, was as a collector for the German National Bank of Little Rock, where he remained
for four years until he accepted a position with the Exchange National
Bank of the same city. There he remained for two years, until he became associated with the Mercantile Trust Co. of Little Rock as Secretary, subsequently becoming its President. . . .

Affairs of the East Tennessee National Bank of Knoxville, Tenn., said to be the largest bank in that city, have
been placed in the hands of the Comptroller of the Currency, according to Associated Press advices from Knoxville
yesterday, Jan. 20, from which we quote below:
Ben A. Morton, President, announced directors had voted to close the
bank "for protection of depositors" and said the action "was taken due to
constant and heavy withdrawals."
A statement issued as of Dec. 31 1932 showed total dePosits of $9,992,354.64. A statement issued Dec. 31 1930, following consolidation
of the East Tennessee National with the City National Bank, showed
deposits at that time of $5,128,039.67.
The last December statement of the bank showed among liabilities
$8,111.261.84 discounts and bills payable. Among resources listed were
loans and discounts of $14,167,897.13. The bank was capitalized at
$2,000,000. It was organized in 1872.
A bank official said the bank owed the Reconstruction Finance Corporation around $8,000,000. The bank had $1,800,000 In secured deposits.
these belonging to the State of Tennessee, United States Government and
the Philippine Islands. The individual amounts were not revealed.

The promotion of Edward C. Tefft from Vice-President
and Cashier of the Union Planters National Bank & Trust
Co. of Memphis, Tenn., to Executive Vice-President, was
announced on Jan. 6 by Gilmer Winston, President of the
institution, according to the Memphis "Appeal" of the next
day. Mr. Tefft has been with the Union Planters National

444

Financial Chronicle

Bank & Trust Co.since the institution absorbed the deposits
of the Guaranty Bank & Trust Co. in 1924. He was at
that time Assistant Cashier of the Guaranty. He went to the
Guaranty when that bank purchased the old National City.
Born in Nortonville, Ky., Mr. Tefft was taken to Memphis
as a small boy by his parents and became a runner for the
National City Bank in 1910 when he left high school
Mr. Winston (who is also President of the Manhattan
Savings Bank & Trust Co. of Memphis, which is owned by
the Union Planters National Bank & Trust Co.) at the same
time announced the resignation of John D. McDowell as
Vice-President of the savings bank as a retrenchment move.
The paper mentioned continuing said in part:
said
I. H. Wilson, Executive Vice-President of the Manhattan Bank,
which was
that he regretted very much that Mr. McDowell's resignation,
effective yesterday (Jan. 6) was made necessary in order to reduce expenses.
"Mr. McDowell is considered by our directors as one of the city's most
capable bankers," Mr. Wilson said. . . .
Trust
Mr. McDowell was one of the organizers of the Fidelity Bank &
ManCo. and became a Vice-President of the Manhattan Bank when the
hattan took over the Fidelity's commercial banking business.

Jan. 21 1933

D. L. Whittle was appointed a Vice-President of the Texas
Bank & Trust Co. of Dallas, Tex., at the annual meeting of
the directors of the institution, held Jan. 11, according to
the Dallas "News" of that date. Mr. Whittle is Vice-President and General Manager of the Wholesale Merchants'
Building Corp. Other officers were re-elected, it was stated,
the chief of which are as follows: R. L. Thornton, Chairman of the Board; W. B. Williams, President; W. M. Holland, Vice-President and General Counsel; E. 0. Terry, VicePresident, and Mike F. Reed, Vice-President and Cashier.
At the respective annual meetings of the stockholders and
directors of the Mercantile Bank & Trust Co. of Dallas, Tex.,
held Jan. 10, no changes were made in the directors and only
one change in the officers, namely, the addition of J. Fair
Burch as an Assistant Trust Officer. The chief officers
are as follows, according to the Dallas "News" of Jan. 11:
Ben H. Stephens, Chairman of the Board; R. L. Thornton,
President; W. M. Holland, Vice-President and General Counsel; Milton Brown, J. W. (Fred) Hoopes, Dan D. Rogers,
W. G. (Fred) Belly, Bailey C. Malone, Meyer RachofskY,
John Rauscher, Vice-Presidents; C. W. Belew, Assistant
Vice-Presidents; H. A. Widdecke, Cashier.

Alfred I. du Pont, formerly President of the Florida
National Bank of Jacksonville, Fla., became Chairman of
the board of directors at the directors' annual meeting on
Jan. 12, and George J. Avent, heretofore a Vice-President,
of the directors of the Denver
At the annual meeting
was advanced to the Presidency of the institution, according
George B. Harrison, PresiColo.,
Denver,
Bank,
National
Pont
du
to the "Florida Times Union" of Jan. 13. Mr.
dent of the institution since 1925, was made Chairman of the
three
for
Bank
National
Florida
the
of
President
had been
Executive Committee, and Roblin H. Davis, heretofore
years, while Mr. Avent has been connected with the instiVice-President, was made President in his stead,
Exeuctive
tution for more than 30 years and a Vice-President since
the Denver "Rooky Mountain News"of Jan. 11.
to
according
as
-appointed
re
were
stated,
was
1918. Other officers, it
it was stated, had recently expressed a desire
Harrison,
Mr.
follows: W. A. Redding. B. S. Weathers, F. C. Schwalbe
some of the duties of his position. C. K.
of
relieved
be
to
GoodHardin
William
-Presidents;
Vice
Taylor,
and Frank
of the Board of Directors of the
Chairman
is
Boettcher
Wakefield,
A.
N.
man, Vice-President and Trust Officer;
Cashier; J. L. Dart, Comptroller; M. V. Osborne, F. W. institution.
Beidelman and H. R. Pride, Assistant Cashiers, and W. L.
Several promotions were m- ade in the personnel of the
Harbin, Assistant Cashier and Assistant Trust Officer. At institution by the directors of the International Trust Co. of
the annual meeting of the stockholders, held previously, all Denver, Colo., at their annual meeting on Jan. 10, according
the directors were re-elected. The paper mentioned further- to the Denver "Rocky Mountain News" of Jan. 11. M. E.
more said in part:
Dukes was promoted from Secretary to Vice-President; G. W.
Mr. du Pont has been a resident of Florida for several years and has
Ballantine Jr., from Assistant Treasurer to Secretary and
invested millions of dollars in this State, much of it in Jacksonville. . . .
H. L. Morgan from Assistant Secretary to Assistant ViceHe is a national business figure whose career began more than 30 years
President.
ago when he purchased and reorganized the du Pont Co. in Wilmington,
Del. He developed the du Pont Co. into one of the world's greatest in.
dustrial institution . .
Mr. Avent. new Florida National President, entered the bank's service
as a bookkeeper in 1901. the day after the great fire. At that time the
institution was known as the Mercantile Exchange Bank.
He remained with the institution during its conversion into the Florida
Bank & Trust Co. in 1905 and into the Florida National Bank in 1906.
He was made an Assistant Cashier shortly after joining the organization's
staff. In 1913 he became Cashier, a post which he held until advanced
to Vice-President in 1918.
Mr. Avent was born in Micanopy. Fla., of a pioneer Florida family.
He attended MicanopY public schools and Stetson University.
During his residence in Jacksonville, Mr. Avent has been closely identified with civic movements. When the city officials formed their Citizens'
Avent
Tax Reduction Committee to study the tax problem last year, Mr.
was asked to serve as a committee member. . . .

Approaching reopening of the Monroe County Bank, at
Monroeville, Ala., and the reopening several days previously
of the People's Bank of Frisco City, Monroe County, are
indicated in the following press dispatch from Monroeville,
on Jan. 18, printed in the Birmingham "Age Herald":
Circuit Judge F. W. Hare issued a decree approving a plan for reorganizing and reopening the Monroe County Bank, which has been closed since
Nov. 12 1932. The bank will be opened within two weeks. The People's
Bank at Frisco City, which also closed Nov. 12, reopened several days ago.

At the annual meeting of the directors of the Farmers.
National Bank of Opelika, Ala., on Jan. 10, I. J. Dorsey Jr.,
formerly Cashier of the institution was promoted to President, according to a dispatch from that place on Jan. 12 to
the Montgomery "Advertiser." The advices went on to say:
Dorsey had served for four years as Cashier and is said to be one of the
youngest bank presidents in the State. The Farmers' National is one of
Opellka's leading financial institutions.

On Jan. 2 a charter was issued by the Comptroller of the
Currency to the Ouachita National Bank in Monroe,
Monroe, La. The new institution, which succeeds the Ouachita National Bank of Monroe, is capitalized at $500,000.
F. F. Millsaps is President and W. C. Oliver,Cashier of the
new bank.
The Comptroller of the Currency on Jan.4issued a charter
to the First National Bank of Kerens at Berens, Texas.
The institution, which succeeds the First National Bank of
Serena, and the Kerens National Bank, is capitalized at
$50,000. W. T. Stockton and Luther Westbrook, are
President and Cashier, respectively, of the new bank.




The resignation of L. M. MacDonald as a Vice-President
at the Beverly Hills Branch of the Bank of America National Trust & Savings Association (head office San Francisco, Calif.) was announced on Jan. 5 by Dr. A. H. Giannini,
Chairman of the institution's General Executive Committee,
according to the Los Angeles "Times" of Jan. 6, which
went on to say:
Mr. MacDonald plans to enter the investment securities field in Loa
Angeles.

At the annual meeting of the directors of the Central
National Bank of Oakland, Calif.,and its affiliated institution, the Central Savings Bank, held Jan. 10, A. J. Mount
was appointed President and T. A. Crellin, formerly a Vice-.
President of the banks, was advanced to Executive VicePresident, of both institutions, according to the San Francisco "Chronicle" of Jan. 11. Mr. Mount succeeds as
President in each case J. F. Carlson, who resigned recently
because of poor health. In addition to Mr. Mount and
Mr. Crellin, the following officers were chosen for 1933 in
the two banking institutions:
Central National Bank; R. M.Fitzgerald, Vice -President: J. F. Hassler.
Vice-President and Cashier; H. A. Mosher and Edward H. Geary. VicePresidents; W. E. Davies, Assistant Vice-President; S. Berven, Assistant
Trust Officer; Charles J. Feehan, J. J. Flynn, 0. T. Roos, M. M. Maze,
P. E. Otey, Fred 0. Wells and George J. Hans, Assistant Cashiers. Hans
will continue to serve as Manager of the bank's Frultvale branch.
Central Savings Bank: R. M.Fitzgerald, Vice-PresIdent; E.0. Petersen.
Vice-President; H. C. Sagehorn, Cashier; Charles D. Bowman. E. J.
Guist°, W. It. Walker, H. W. Sanders and M. R. Bronner, Assistant
Cashiers. Brenner will continue to serve as Manager of the bank's Telegraph Avenue branch, with H. S. Williams as Assistant Cashier at that
branch.

Voluntary liquidation of the Central Point State Bank of
Central Point, Ore., was decided upon at a meeting of the
directors of the institution on Jan. 12, and the bank was
closed the next day and its affairs turned over to the State
Superintendent of Banks for Oregon, A. A. Schramm. The
Portland "Oregonian" of Jan. 14, from which this is learned,
continuing said:
The bank was described as sound financially but volume of business
had been decreasing steadily due to its nearness to Medford, until income
was insufficient to pay costs of operation. Depositors were assured that as
soon as the assets are disposed of they will receive all, or practically all.
of their money. T. P. Tollefson was President.

Volume 136

Financial Chronicle

445

THE WEEK ON THE NEW YORK STOCK EXCHANGE. ward and at the close showed
losses ranging up to 3 or more
The stock market was narrow and unsettled during the points. Chain store and mail order stocks were
under
forepart of the present week, but showed an improving ten- pressure and prominent issues like Auburn Auto and Union
dency on Thursday and Friday. The volume of trading has Pacific were particularly hard hit. Some liquidation was
been light and while some liquidation has appeared from time apparent from time to time, but this was not serious and
was quickly absorbed. Prominent among the declines of the
to time, it was hardly large enough to make very much im- day
were such stocks as Air Reduction, 13
% points to 59%;
pression on the list. Trading has been dull, though there American Power
& Light (6) pref., 1% points to 2134;
have been occasional rallies that served as a cheek on the Atchison, 134 points to 4134; Auburn Auto,
23/2 points to
downward drift. Motor shares have been weak and mer- 453'I; Bucyrus E. pref. (4), 33/2 Points to 3134; J. I. Case Co.
pref.,
25
% points to 525
chandising stocks have generally been down. Tobacco se%; Delaware & Hudson, 234 points
curities, on the other hand, have shown improvement and to 49%; Eastman Kodak, 134 points to 563%; Goodyear 1st
pref., 234 points to 4034; Homestake Mining, 134 points to
so have a few of the railroad shares. Short covering has
1473/2; Ingersoll-Rand, 13
% points to 253/s; International
frequently been in evidence, particularly on Thursday when Busines Machine
s
s, 23/2 points to 9234; Macy & Co., 334
the market firmed up. Call money renewed at 1% on Mon- points to 30; National Lead pref.,
234 points to 1087
%;
day, continued unchanged at that rate throughout the week. Pacific Tel. & Tel., 2 points to 108; Peoples Gas, 13
% points
The volume of trading was light and the tone heavy during to 7234;Union Pacific, 134 points to 7234; West Penn Elec. A,
the greater part of the session on Saturday. There were a 5 points to 45; Woolworth, 2% points to 3234, and Western
few stocks and groups of shares that showed an inclination Union Telegrah, 134 points to 2534.
Stocks were somewhat improved on Thursday, though
to move against the trend, but the general list was somewhat
transactions were small and price fluctuations were narrow
reactionary. Some liquidation was apparent from time to during the opening hour. As the
day progressed the tone
time during the session but losses, as a rule, were compara- improved, and while trading continued quiet, practica
lly
tively small. Chrysler was noteworthy for its weakness and all groups showed a disposition to move upward. United
at one time was down about a point. Tobacco stocks made Air Transport was conspicuous in the trading as it moved
the best showing and moved forward under the guidance of briskly upward. Tobacco stocks also were moderately
R. J. Reynolds which closed at 33 with a net gain of 134 strong, Liggett & Myers showing considerable strength,
buying of these issues being due to some extent to the excelpoints. American Tobacco pref. also improved around 2 lent report for 1932. Some
of the rails were strong and both
points. Railroad shares were heavy during the first hour, United States Steel and American Can were
active. In
but rallied somewhat before the close. Steel stocks were the general list the changes were within a comparatively
off and so were the amusement shares and motor issues. narrow range and largely on the side of the decline. Stocks
Among the few prominent stocks showing losses at the close closing on the downside included among others, Federal
Mining & Smelting, 434 points to 19; American Car &
were Commonwealth & Southern pref., 13
% points to 4634; Foundry pref., 2 points to 18; America
n Smelting 2nd pref.,
Delaware & Hudson, 2 points to 55; Loews' pref., 434 points 3 points to 24;.
Brooklyn Manhattan Transit, 13( points to
to 5234; Norfolk & Western, 33j points to 11934; United 75; Peoples Gas, 234 points to 70; West
Penn Electric pref.
Biscuit, 13 points to 1534; Chrysler, 1 point to 143
%; (6) 1 point to 51; Curtis Publishing Company, 1 point to 44;
American Sugar, 1 point to 22; Motor Products, 2 points to General Mills, 134 points to 393/8; Cushman pref., 2 points
% points to 10734.
1234; and Procter & Gamble, 134 points to 2534. There to 7534, and National Lead, 13
Stocks continued to move forward as the market opened on
was also a host of fractional recessions.
Friday, but encountered profit taking as the day advanced
The market opened firm on Monday, but turned reaction- and
lost a large part of its early gains as prices dropped back
ary late in the afternoon, the losses at the close ranging from to their starting point. Some of the more
active of the specufractions to a point or more. The sharpest declines occurred lative favorites showed early gains ranging up to
2 or more
during the final hour and took place on an expanding volume. points, the list including such prominent issues as American
Can, Auburn Auto, Union Pacific, Atchison and United
The changes for the day were principally on the side of
the
decline and included among others, Air Reduction,134 points States Steel. Among the stocks showing gains at the close
were Allied Chemical & Dye 234 points to 8634, Amer. Tel.
to 60%; Allied Chemical & Dye,234 points to 843
%;American & Tel. 13
% points to 1053
/s, Eastman Kodak pref. 234 points
Can,234 points to 62; Amer. Tel. & Tel., 234 points
to 10434; to 123,International Harvester 2 points to 82, Pacific Tel. &
Auburn Auto, 434 points to 4734; J. I. Case Co.,
234 points Tel. 2 points to 110, Union Pacific 23/2 points to 7534, and
to 443; Delaware & Hudson, 33% points to 5134;
Eastman United States Steel 134 points to 2934. The market was
firm at the close with many active stocks moving quietly
Kodak, 23/8 points to 5834; Homestake Mining, 3
points to upward.
147; Louisville & Nashville, 2 points to 2334; Union
Pacific,
TRANSACTIONS AT THE NEW YORK STOCK EXCHAN
2 points to 73; United States Steel pref.,
GE
234 points to 61;
DAILY. WEEKLY AND YEARLY.
Western Union Telegraph, 234 points to 2634;
Westinghouse,
stow.
Railroad
State,
United
Total
134 points to 2834; Atchison, 13/2 points to 413/2; Columbian
Week Ended
Number of and Miscell. Municipal &
States
Bond
Jan. 20 1933.
Shares.
Bonds.
Porn Bonds.
Bonds.
Carbon, 134 points to 33/
3s; Delaware Lackaw
Bales,
anna & Saturday
360.910 83,589,000 81.462,000
8513,000 $5,564,000
Western, 134 points to 2334; Peoples Gas, 1
Monday
868.333
6,355.000
2,840,000
point to 74; Tuesday
1,334.000 10,529,000
663,735
5,592,000
2,704.000
2,830,800 11,126,800
New York Central, 134 points to 1834; Johns-Manvil
Wednesday
___
687,085
8,821,000
2,393,000
le, 134 Thursday
3,354,500 14.568,500
624,040
5,771,000
2,297,000
2,849,000 10,917,000
points to 2034; Goodyear 1st pref., 234 points to
707,337
6.723,000
2,402,000
3,715,500 12.840,500
4234; and Friday
Brooklyn Union Gas, 1 point to 80.
"NAM
2011 440 122221 ono 214008000 214 SORrenn IRA ac 200
Stocks continued narrow and irregular on Tuesda
y and
Balms at
Week Ended Jan. 20.
Jan. 1 to Jan. 20.
New You Stock
while the market showed moderate rallying tendencies
during
Exchange.
1933.
1932.
1933.
1932.
the morning dealings, the changes were small and without Stocks-No,of
shares3,911,440 10,655,898
13,228,181
20,296.801
special interest. Trading was light and there was
Bonds.
little in Government bonds--- $14,596,800 $26,683,000 828,652,700
845,056,500
the way of fresh offerings in the market during the session. State dr foreign
bonds_
14,098,000 17,254,000
45,160,000
33,184,000
Railroaddc misc. bonds 36,851,000 48,096,000
109,622,700
Most of the downward changes were among the preferre
83,274,000
d
'Total
$65,545,800 $92,033,000
stocks and included such active issues as American Steel
$183,435,400
$161,514,500
Foundry pref. 3 points to 50, Norfolk & Western pref.
DAILY TRANSACTIONS AT THE BOSTON. PHILADE
LPHIA AND
23/2
BALTIMORE EXCHANGES.
points to 81, Pure Oil pref. 2 points to 60, Shell Union Oil
pref. 234 points to 4034, Tide Water Oil"A" pref. 134 points
Boston.
Philadelphia.
Baltimore.
With Nadal
to 4234, West Penn Electric pref. 2 points to 59, American
Jan. 20 1933.
Meares. Bosalialse. Mares. Bond Bales. Mares.
Bondi:Wee.
Can % points to 12634, Coca-Cola 1 point to 783
%, Corn Aaturday
6,977
8,007
811,000
696
Products prior pref. 1% points to 137, Detroit Edison
89.300
klondar
18,598
81,000
13,351
8,000
33/2
1,655
3.300
15,256
1,000
13,079
1,000
points to 67, Macy & Co. 13/2 points to 3334, and Endicott- Tuesday
2,050
2,000
Wednesday
13.160
1,000 a10,099
11,000
2,739
4.000
Thursday
12,567
6,000
Johnson 1 point to 30.
a7.610
11.000
1,231
7.000
Friday
4,499
4,000
3,375
1,121
1,000
The market continued to sag during most of the dealings
Total
71,057
213.000
55,521
$42.000
9.492
826,600
on Wednesday. During the opening hour prices were fairly P1ey. week
revised 114,207
812.100 103,072
$23,000
831,400
6,296
steady, but trading soon slowed up and prices drifted downa In addition sales of rights




were: Wednesday 20; Thursday, 25.

446

Financial Chronicle

Jan. 21 1933

leading shares held their gains throughout the session, though
THE CURB MARKET.
the list, as a whole, was down at the close. Industrial stocks
Dullness and unsettlement due to scattered liquidation were in moderate demand and showed fractional gains and
were the outstanding characteristics of the curb market there was some buying in the public utilities and fractional
s
during the greater part of the present week. Changes were gains were recorded as the market closed. The advance
the week were about evenly balanced,
lower
for
ns
toward
recessio
were
and
nts
moveme
price
the
while
and,
small
closing on the upside including Aluminum Co. of
levels until Thursday, there were occasional rallies that those
America 4834 to 50%, American Light & Traction 17 to 1834,
carried some special stock or group of stocks to slightly higher Deere & Co. 934 to 10, Ford of Canada "A" 634 to 7, New
levels. Public utilities, for instance, were fairly steady York Telephone pref. 115 to 116, Parker Rust Proof 32 to
throughout the week. Industrial stocks, on the other hand, 3234,Swift & Co. 834 to 834 and United Light & Power"A"
were generally lower. On Thursday the curb list followed 4 to 434. Prominent stocks showing a decline for the week
4 to 234, American Gas &
e 23
the "big board" as it turned upward and a number of sub- included American Beverag
3
n Superpower 434 to 44,
America
31,
to
of
3134
Electric
all
Not
line.
the
stantial gains were recorded all along
to
8
1,
/
13
Atlas
to
Corp.
234
"A"
Electric
&
Gas
ed
Associat
the gains were held, but there was a fairly large and repreElectric 234 to 234, Commonwealth
States
Central
734,
sentative list that closed on the upside. On Saturday Edison 80 to 75, Consolidated Gas of Baltimore 65 to 6434,
scattered liquidation slowed up the dealings during most of Creole Petroleum 234 to 234, Duke Power 5734 to 57,
the session. Several of the more volatile shares in the Electric Bond & Share 1934 to 1834, International Petroleum
2934 to 2834, Niagara Hudson
active list were down from 1 to 2 or more points, and while 1034 to 1034, New Jersey Zinc
Penruroad Corp. 134 to 134, A.0.Smith
,
4
153
to
utility
public
Power
the
in
1534
arly
particul
there were some gains,
2134 to 2134, United
The 2034 to 18, Standard Oil of Indiana
group, there were generally erased before the close.
2 to 134 and Utility
Corp.
Gas
United
134,
tative Founders 134 to
Great Atlantic & Pacific Tea Co. was fairly represen
to
Power
134.
134
downof the movements of the industrial group as it swung
A complete record of Curb Exchange transactions for the
off
was
Deere
close.
s
previou
week will be found on page 473.
ward about 2 points from its
of America.
NEW YORK CURB EXCHANGE.
and there was little activity in Aluminum Co.
DAILY TRANSACTIONS AT THE
in
later
received
but
start,
the
at
lower
was
Gas
American
Bonds (Par Pains).
Stocks
points
(Number
Week Ended
the day. Commonwealth Edison declined about 234
Foreign
Foreign
of
Jan. 20 1933.
higher. Mining
Total,
Government. Corporate.
Shares).
and Electric Bond & Share was slightly
Oil
issues.
ent
investm
$2,453,000
898.000
$153,000
the
$2,202,100
were
so
66,100
Saturday
stocks were slow and
290,000 4,760.000
162,000
119,720 4.308.000
again Monday
185,000
368,000 4,331,000
101,230 3,778,000
shares also were dull and unchanged. Curb stocks
Tuesday
209,000 4,104,000
145,000
84,365 3,750.000
Wednesday
while
there
and
,
3,283,000
Monday
213,000
47,000
on
y
3.023.000
tendenc
91,665
sagging
a
Thursday
showed
122.000
107,000 3,432,000
84,056 3,203,000
were un- Friday
was some liquidation apparent, the losses, as a rule,
814,000 $1,285,000 $22,363,000
543,136 520,264,000
Total
important. Pivotal shares were generally lower, Electric
Jan. I fa Jan. 20
20
Jan.
Ended
Week
n
Sales at
Bond & Share being down about a point, while America
New York Curb
1932.
1933.
1932.
1933.
Exchange.
Gas & Electric dipped fractionally. A few stocks moved
2,987.322
1,454,365
1.823,131
543,130
shares_
of
of
o.
Stocks—N
contrary to the trend. Many of these, however, were
Bonds.
$30,791,000
$61,404,000
0 $17,042,000
$20,264,00
pref.
Domestic
"B"
1,157,000
529,000
3,068,000
814,000
small floating supply like Long Island Light
Foreign government _ -.
1,197,000
632,000
3,595,000
1,285,000
which was up about 3 points on one sale and Louisiana Power Foreign corporate
$33,145,000
$68,067,000
922.363,000 $18,203,000
Total
& Light pref. which advanced about 8 points. The industrials were represented on the up side by Aluminum Co. of
COURSE OF BANK CLEARINGS.
America which moved ahead about 2 points to 5134 and
s this week will again show a decrease as
clearing
Oil
close.
the
Bank
at
Deere which showed a fractional advance
year ago. Preliminary figures compiled
a
compared with
shares were in moderate supply and moved slowly downward
by us, based upon telegraphic advices from the chief cities of
to lower levels.
the country, indicate that for the week ended to-day (Satura
The dealings on the curb market were marked by some- day Jan. 21), bank exchanges for all the cities of the United
there was some
what steadier tone on Tuesday, and while
States from which it is possible to obtain weekly returns will
liquidation in evidence, there was sufficient support to offset be 19.4% below those for the corresponding week last year.
notemost of it. Trading, however, was practically without
Our preliminary total stands at $4,455,711,737, against
worthy feature. Low priced issues were active and Electric $5,525,696,947 for the same week in 1932. At this center
like
Amerutilities
Bond & Share was fairly steady. Public
there is a loss for the five days ended Friday of 18.0%. Our
ican Gas & Electric were somewhat stronger, particularly comparative summary for the week follows:
Hartford Electric which jumped about 3 points to 57. Oil
Per
shares were quiet and made no important progress either
Clearings—Returns by Telegraph.
Cent.
1932.
1933.
Week Ending Jan. 21.
way. Most of the curb stocks moved downward on Wed$2,401,153,984 $2,927,519,041 —18.0
nesday and while there was an appearance of strength at New York
203,833,173 —27.4
148.021,956
Chicago
lower
toward
levels.
was
whole,
the
238,000,000 + 0.8
on
trend,
240,000,000
intervals, the
Philadelphia
215,000,000 —17.2
178,000,000
62,204,753 —19.7
49,979.173
Brief periods of strength were apparent in some of the more Boston
Kansas City
62,700,000 —14.5
53,600,000
Louis
active stocks, Montgomery Ward "A" stock, for instance, St.
97,319,000 —25.4
72,600,000
San
Francisco
ng
unand
remaini
port
opening
clearings.
will
re
longer
No
the
at
Los Angeles
moving up 2 points to 5734
76,651,387 :-27.8
55,373,390
Pittsburgh
63,611,603 —20.5
46,730,111
changed during the rest of the session. Fractional gains Detroit
740,006 —24.8
60,
45,603,734
52,049,678 —22.3
40,420,651
were recorded by some of the popular trading favorites like Cleveland
Baltimore
—16.0
32,552,991
27,061,346
a
and
New
Cafeteri
New Orleans
Atlantic & Pacific Tea Company, Willow
off,
ent
,344 84,092.181,632 —17.9
investm
slightly
were
$3.358,634
shares
Oil
pref.
five
days
ne
cities,
Telepho
Twelve
York
561,540,655 —18.0
460,547,145
Other cities, five days
stocks were lower and aviation shares yielded under small
—7.9
,287
$4,653,722
,489
$3,819,181
five
days
the
line on
Total all cities,
871,974,660 —27.0
sales. Moderate gains were recorded all along
638,530,248
All cities. one day
al
losses
fraction
and
changes
narrow
g
—111 4
Thursday followin
IA 495 Anrt 017
14 4S6 711 737
Tntwl n11 elf tala Mr oznek
during the first hour. Trading was quiet, however, though
the
by
week
the
for
covered
details
Complete and exact
the volume increased as the day advanced. Public utilities
cannot
We
of
next
week.
ssue
our
in
&
appear
will
g
Bond
Share,
foregoin
Electric
by
were represented in the advance
inasmuch as the week ends to-day
which moved ahead about 1 point, and stocks like some of furnish them to-day,
y figures will not be available
Saturda
the
or
to
6
and
2
ay)
from
more
(Saturd
ranging
gains
the preferred issues scored
in tho above the last day
ngly,
Accordi
ay.
t
in
to-d
apparen
the until noon
points. A stronger price trend was also
all cases estimated.
in
be
to
g
has
in
week
occurrin
such
the
gains
of
ding
outstan
the
industrial group,
In the elaborate detailed statement, however, which we
stocks as Aluminum Co. of America, The Great Atlantic &
below, we are able to give final and complete
Pacific Tea Co., Montgomery Ward "A," Cord Corporation present further
previous, the week ended Jan. 14. For
week
the
for
ent
results
but
investm
steady
fairly
and Deere. Oil stocks were
decrease of 30.0%, the aggregate of
a
is
there
week
that
shares were under pressure.
country being 84,544,739,804, against
whole
the
for
s
clearing
n
the
forenoo
during
upward
slowly
Curb stocks moved
of this
rd and a goodly $6,488,463,959 in the same week in 1931. Outside
on Friday, but the trend turned downwa
at this
s
clearing
bank
the
of
25.8%,
decrease
a
is
d. Some of the city there
part of the early advance was cancelle




Volume 136

Financial Chronicle

center recording a loss of 32.2%. We group the cities 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, the totals show a contraction of
31.5%, in the Boston Reserve District of 35.0% and in the
Philadelphia Reserve District of 11.9%. In the Cleveland
Reserve District the totals are smaller by 30.9%, in the
Richmond Reserve District by 20.5% and in the Atlanta
Reserve District by 25.5%. The Chicago Reserve District
suffers a loss of 34.5%, the St. Louis Reserve District of
22.9% and in the Minneapolis Reserve District of 20.0%.
In the Kansas City Reserve District, the decrease is 28.3%
in the Dallas Reserve District 24.1% and in the San Francisco
Reserve District 28.0%.
In the following we furnish a summary of Federal Reserve
districts:
SUMMARY OF BANK CLEARINGS.
Week Ended Jan. 141933,

1933.

Inc.or
Dec.

1932.

1931.
1930.
Federal Reserve Mats.
$
$
%
5
$
1st Boston- _ --12 cities
205,766,787
316,428,361 -35.0
442,320,091
607,704.082
2nd New York 12"
2,979,551,807 4,349,390,526 -31.5 5.655.298602 7.209,936.927
3rd Philadel'ia_10 "
308,918,602
350,664,767 -11.9
417,165,186
673,213,973
4th Cleveland-- 6 "
172,604,813
249,747,052 -30.9
353,468,507
411,676,325
5th Richmond. 6 "
97,534,511
122,692,496 -20.5
153,964,506
185,133.154
6th Atlanta_ ___11 "
84,089,119
112,826,201 -25.5
143,371,742
189,508,236
7th Chicago __-20 "
277,839,151
423,997,319 -34.5
717,677,302
875,328,154
8th St. Louis.-- 5 "
84,577,448
109,628,399 -22.9
155,945,746
203,170,096
9th Minneapolis 7 "
62.024,581
77,524,011 -20.0
100,152,963
113,337,119
10th KansasCity 10 "
82,093,436
114,433,437 -28.3
176,372,818
203,787,125
11th Dallas
5 "
34,061,530
44.669,158 -24.1
55,690,143
72,650,899
12th San Fran 13 "
155,628,019
216,261,231 -28.0
284,623,649
360,686,364
Total
117 cities 4.544,739,804 6,438,463,959 -30.0 8,655,031,155 11,106,132,434
Outside N. Y. City
1,673,557,483 2.256,240,223 -25.8 3,144,934,271 4,100,418.381
Canada
32 cities
926 Aen gm
237.313822 -50.4
299.561.651
414.997.919

We now add our detailed statement, showing last week's
figures for each city separately, for the four years:
Week Ended Jan. 14.

Clearings at1933.

Int. Or
1932.

Dee.

205,788,787

316.429,361

Obbki•aize.4,
Obtabos. b

Total(12 cities)

0.

$
$
%
First Federal Reserve Dist rict.-509t
0 n.Maine-Bangor _
349,276
452.698 -22.8
Portland
2,217,911
2,833,387 -21.7
Meas.-Boston_ _ 177,872,414 276,174.588 -35.6
Fall River
608,006
864,305 -29.7
Lowell
308.598
288,850 -6.8
New Bedford
559,159
925.945 --39.6
Springfield.2,687,811
3,615,402 -25.7
Worcester
1,780,581
2,881,526 -38.2
Conn.-Hartford
0,997,077
8,891,356 -21.3
New Haven_
4,190,348
7,019,651 -40.3
R.0.-Providence
8,006,100
11,881,900 -32.6
N.H.-Manch'r_
389,506
599,753 -35.1

1931.
$

1930.
$

662,304
3,534.679
391,334.275
1,104,984
641,642
1,082366
5,091,544
3,048,679
12,155,206
8,491,001
14,556,500
616,811

598,989
3,746.545
543,960,036
1,283,068
1,361,877
1,410,625
5,312,777
3,825.635
15,726,418
10,412,257
19,279,300
786,535

442,320,091

607.704,062

+41
•-•
1

,
lb.)00 NW 0No-•GioP.-,
..-i

Second 'rode al Reserve D istrict.- Ne
.
N. Y.-Albany __
15,713,204
6,005,626
7,176,344
7,145,323
Binghamton__
801,567
791,9741,142,419
1,455.479
Buffalo
38,583,061
31,931,299
41,879,498
53,418,838
Elmira
740,506
.
1,082,319
1,800,751
Jamestown
451,995
658,990
1,126,407
1,278,752
New York__ _ 2,871,182,321 4,232,225.73
6
5,511,096,884 7,005.714,053
Rochester
.941,405
8,510,771
9,977,469
14,884,716
Syracuse
3,195,928
5,006.079
5,406,301
5,305,344
Conn.-Stamford
2,601,077
3.344,811
3,500,924
4,120,105
N. J.-Montclal
373,480
525,500
729,725
748,927
Newark
17,237,547
25,562.276
32,112,736
38,643,529
Northern N..1
24,900,138
34,086.958
40,067,476
75.421,110
Total(12 cities) 2,979,551,807 4,349,390.52
6 -31.5 5,655,298,502 7,209,938,927
Third Federal Reserve Dist rict.-Phila
delphil a.pa.-Altoona
289,911
554,799 --47.7
1.315,113
1,664.434
Bethlehem _ _
483,126
792.286
-39.0
1,119,120
1,257.275
Chester
223,279
517,000 -56.8
1,000,000
1,340,214
Lancaster
861,483
1,309,802
34.2
1,521,050
1,828,019
Philadelphia _
296,000,000 332,000,000 -10.8
394,000,000 647.000.000
Reading
1,919,906
2,584.087 -25.7
3,214,098
4,022,438
Scranton
2,037,930
3,583,998 -42.8
4,541,511
4,977,186
Wilkes-Barre. _
1,627,889
2,363.933 -31.1
3.832,184
3,833,589
York
896,098
1,496,864 -40.1
2,029,110
2,101,818
N..L-Trenton__
4.579,000
5,482,000 -16.5
4,593,000
5389.000
Total(10 cities) 308,918,602 350,864,787 -11.9
417,16.5,186 673,213,973
Fourth Fede al Reserve D istrict--Clev eland
Ohtc.--Akron.„
518,000
316,000 -63.9
4,208,000
5,288,000
Canton
b
b
b
b
b
Cincinnati
39,310,010
49,080,921 -19.9
87,238,000
70.955,606
Cleveland
57,063,166
89,954,394 -36.6 115,021,000 146,076,151
Columbus
6,931,300
12,946,100 -46.5
14,966,800
17340.500
Mansfield
•
840,369
800,000 +5.0
1,611,207
2,106,623
Youngstown _
b
b
is
b
b
67,941,968
r8.-Pittsburgh
96,689,638 -29.7 150,485.500
170,109.445
172,604.813 249,747,053 --30.9 353,468,507
Total(6 cities)
411,678,325
Fifth Federal Reserve Dist rict-Mehra ond408,792
442,330 -8.0
2,138,000
2,811,874 -24.0
27,127,194
29,187,943 -7.1
849,614
933.740 -9.0
48,811,507
66,513,831 -26.6
18,251,404
22,802,978 -20.0

952,078
4,212,691
37,203,000
2,046,031
84.117,280
25,433,426

1,241,404
4,789.701
49,161,000
2,241,983
100,013,236
27,685,880

122,692,496 -20.5

153.964,506

185,133,154

Sixth Federal Reserve Dist rict-Atlant aTenn.-Knoxvill 3
2,152,079
3,45.5,324 -37.7
Nashville_ _ .
9,582,959
11,215,128 -14.6
Ga.-Atlanta- _ . 24,900,000
33,400,000 -25.4
706.496
1,188,963 -40.5
Augusta
.
334,894
Macon
543,969 -38.4
8,588,491
11,251,359 -23.7
Fla.-Jack nville.
Ala.-Birming'm. 10,856,589
13,282,864 -18.1
731,624
Mobile
1,120,513 -34.7
1.152.000
1274,000 -9.8
Miss.-Jackson_ .
109,910
160,139 -31.4
Vicksburg,..-.
La._NewOrleans
24,974,077
35,955,942 -30.5

2.500.000
18,074,420
40,530,343
1,494,001
840,041
13,885,083
18,014,293
1,545,400
2,267,000
207,925
46,033,256

3,748,185
22,867,884
51,175,115
2,175,851
1,739,358
16,448,399
25,829,933
2,117,170
2,148,753
256,533
61,003,055

Va.-Norfolk___
Richmond ___ •
S.C.-Charlesto
Md.-BaltImore
D.C.-Washing'
Total(6 cities) •

Total(11 cities 1

97,584,511

84,089,119




112,828,201 -25.5

143,371,742

189,508,236

447
Week Ended Jan. 14.

Clearings at1933.

1932.

Inc. or
Dec.

1931.

1930.

$
$
%
$
Seventh Feder at Reserve D istrict.-Chi cago.dich.-Adrian _ _
104,739
181,762 -42.4
222,475
Ann Arbor.,,,
832,232
764,726 -8.8
738,000
Detroit
58,645,002
82,738,116 -29.1 139,170,338
Grand Rapids_
3,538,586
4,791,345 -26.1
6,755,248
Lansing
324,000
1,826,400 -82.3
3,407,814
I118.-Ft. Wayne
791,653
1,274,995 -37.9
2,732,604
IncUanapolls
12,345.000
14,374,000 -14.1
20,131,000
South Bend_ _ _
1,029,240
1,405,790 -26.8
2,142,698
Terre Haute
3,332,968
3,925,948 -15.1
5,014,094
Wi3.-Milwaukee
10,829,190
19,449,355 -44.3
26,670,190
La.-Ced. Rapids
514,457
776,630 -33.8
2,940,283
Des Moines_ _ _
5,098,684
5,149,498 -17.1
7,289.290
Sioux City_,.
1,776,513
3,330,471 -46.7
4,372,596
Waterloo
1
495,468
940,165
__-Ill.-Bloom'gton,
759,364
1,165.984 -34.9
1,640,464
Chicago
173,924,153 275,503,898 -36.9 483,313,295
Decatur
383.076
812,583 -52.9
1,079,242
Peoria
2,009,999
2,986,020 -32.7
3,963,431
Rockford
514,686
1,084,420 -52.5
2,575,016
Springfield_ __
1,085,611
1,959,910 -44.6
2.579.059
Total(20 cities) 277,839,151 423,997,319 -34.5 717,677,302
Eiehth Federa I Reserve Dis trict.-St. L ouls.Ind.-Evansville
is
b
b
b
550.-St. Louis_
54,500,000
73,100,000 -25.4 111,800.000
Ky.-Louisville_
19,226,867
23,292,059 -17.5
29,759,024
Owensboro.
b
b
b
b
Tenn.- Memphis
10,481,978
12,474,371 -16.0
13,654,008
111,-Jacksonville
22,660
125,647 -81.8
157,342
Quincy
345,943
636,322 -45.6
575,372
Total(5 cities).
84.577.448 109,628,399 -22.9 155,945,746
Ninth Federal Reserve Dis trict-Minn eapolisMinn.-Duluth
1,762,799
2,298,584 -23.4
4,146,871
Minneapolis
42,157,125 . 52,499,007 -19.7
67,712,470
St. Paul
13,902,182
17,751,309 -21.7
21,510,234
No. Dak.-Fargo
1,428,613
1,883,348 -24.1
2,081,724
S. D.-Aberdeen.
477,871
616,275 -22.5
997,371
Mont.-Bllling8 _
294,092
467,074 -37.0
680,296
Helena
2,001,899
2,008,414 -0.1
3,023,997
Total(7 cities).

62,024,581

77,524,011 -20.0

$
272,579
922.862
181,830.256
7.135,958
4,194,800
3,865,400
25,520,000
2,795,956
5,243,951
32,086,495
2,917,951
9,820,861
6,744,811
1,771,118
1,8.58,051
574,829,904
1,272,549
5,865,013
3,536,354
2,843.285
875,328.154
b
133,000,000
44,360.748
b
24,286,634
328,498
1,194,218
203,170,096
4.669.907
77.569,185
24,460,261
2,236,324
1,041,100
582,342
2,778,000

100,152.963

113,337,119

Tenth Federal Reserve Dis trict-Kans as CityNeb.-Fremont 124,488
173,418 -28.2
253.044
Hastings
152,269
171,296 -11.1
477,279
Lincoln
1,666,729
2,450,335 -32.0
3,379,214
Omaha
17,580,547
26,304,604 -33.2 40,400,622
Kan.-Topeka
1,6.58,780
2,206,703 -24.8
3,406,232
Wichita
3,524,843
5,055.558 -30.2
7.643,671
Mo.-Kan. City53,973,415
72,485,766 -25.5 111,962,655
St. Joseph.
2,426,034
3,782,233 -35.9
6,395,282
Colo.-Col.Sigs
469,764
852,343 -44.9
967,002
Denver
a
a
a
a
Pueblo
516,567
951,183 -45.6
1,487.837

33.5.301
584,308
3,667,303
43,882,614
3,429,735
7,903,438
132,928,031
8,117,157
1,180,985
a
1,778.253

Total(10 cities)
82,093,436 114,433,437 -28.3
Eleventh Fede ral Reserve District-Da HasTexas-Austin
751,889
1,091,794 -31.1
Dallas
24,931,577
31,588,648 -21.1
Forth Worth
4,279,069
6307,110 -29.9
Galveston
1,006,000
2,838,000 -32.8
La.-Shreveport_
2392,995
3,243,606 -32.4
Total(5 cities).

34,061,530

176,372,818

203,787.125

1,464,213
38,527,572
8,074.989
3,010,000
4,613,369

1,488,181
47.324,702
12,763,906
4,614,000
6,460.110

55,690,143

72,650.899

Franc isco.-37.6
36,978,754
-42.4
10,604,000
-52.0
1,018,078
-27.7
29,429,947
-8.6
16.683.591
-24.9
7,398,453
-35.3
6,480,672
-30.0
6,959,225
e
a
-26.8 159,413,654
-27.8
3,284,126
-26.9
2,335,619
-26.7
2,072,130
-20.1
1,987,400

42,408,534
11,891,000
1,463,067
35,815,829
23,337,367
8,666,930
6,625,088
7.209,328
e
212,199.343
3,669,453
2,281,641
2,117,684
3,001,100

44,869,158 -24.1

Twelfth Feder at Reserve D istrict.-San
Wash.-Seattle_.
17,472,679
27,986.992
Spokane
4,278,000
7,432,000
Yakima
270,930
564,931
Ore.-Portland,.
14,757,694
20,424,557
Utah.-S.L. City
11,990,143
13,125,085
Calif.-L.Beach_
3,070,368
4,090,283
Pasadena
3,154,714
4,874,604
Sacramento,_ _
6,981,347
9,974,071
San Diego
e
e
San Francisco_._
88,795,203 121,270.554
Ban Jose
1,585,823
2,197,615
Banta Barbara_
1,046,736
1,432,136
Santa Monica.
921,073
1,256,770
Stockton
1,303,309
1,631,633

Total(12 cities) 155,628,019 216,261,231 -28.0 284,623,649 360,686,364
Grand total (117
cities)
4.544,739,804 8,488,463,959 -30.0 8,656,031,15511106,132434
Outside NewYork 1,673,557.483 2,256,240,223 -25.8 3,144.934,271 4,100,418.3
81
Week Ended Jan. 12.

Clearings at
1933.
CanadaMontreal
Toronto
Winnipeg
Vancouver
Ottawa
Quebec •
Halifax
Hamilton
Calgary
St. John
Victoria
London
Edmonton
Regina
Brandon
Lethbridge
Saskatoon
Moose Jaw
Brantford
Fort William....
New Westminster
Medicine Hat-Peterborough,.,,_
Sherbrooke
Kitchener
Windsor
Prince Albert _ --Moncton
Kingston
Chatham
Sarnia
Sudbury
Total(32 cities)

$
63,132,143
71.502,902
42,250,622
11,199.253
3331.773
3,109,141
2.153,716
3.070,914
4,660,001
1367,079
1,190,464
2,084,978
3,004,097
4,012,081
232,186
321,190
1,052,323
402,740
646,726
452,873
369,929
165,065
490,687
456,325
683,725
1,739.110
198,517
601,222
589.356
387.340
392.536
389,356
225,640,370

1932.
$
75,664,140
72,386,799
30,114,120
12,177,020
4,542,208
4,067,066
2,461,762
4,030,994
4,381,529
2,222,407
1,419,188
2,353.882
4,313,517
4.030,729
293,405
289,820
3,256.762
473,917
794,938
440,936
458,151
174,741
536,496
618,492
812,840
2,362,924
296,177
751.277
514,811
451,951
379,535
563.178

Inc.or
Dec.
%
-16.6
-1.2
+40.3
-8.0
-24.4
-23.6
-12.5
-23.8
+6.4
-34.0
-16.1
-11.4
-30.4
-0.5
-20.9
+10.8
-67.7
-15.0
-18.6
+2.7
-19.3
-5.5
-8.5
-26.2
-15.9
-26.4
-33.0
-20.0
-24.4
-14.3
-3.4
-30.9

237,635,692 -50.4

1931.

1930.

5
109,684,033
93,905.370
29,090.660
14,187,671
5,303,674
5,122,937
2.635,746
4,453,300
6,435,068
2,040,443
1,943.807
3,015.930
4.139.533
3,227,458
423,298
385.190
1,599,043
755.225
917,029
601.808
665,055
197,932
759,402
602,779
899,080
2,869,618
333.151
695.598
698,320
651,741
539350
755,50

$
161,909,5.56
126,438,780
41.091,877
19,195,382
7,245,048
6,815.448
3,099,505
5,612,049
9,108,868
2,200,673
2,542,977
3.061.403
5,301,642
3,894.585
485,810
478.941
2,001,900
941,366
1,035,466
788.307
803.094
321,359
675,000
816,249
1,265,272
4,531,426
394,359
866,507
773,888
694,966
608.236

299,581,651

414,997,919

a No longer reports weekly clearings. b Clearing
house not functioning at present.
e No longer reports clearings. f Only one bank
open, no clearings figures available.
•Estimated.

Financial Chronicle

448

THE ENGLISH GOLD:ANDTSILVER MARKETS. _
We reprint the following from the weekly circular of
Samuel Montagu & Co. of London, written under date of
Jan. 4 1932:
GOLD.

The Bank of England gold reserve against notes amounted to £119.788,284
on the 28th ultimo, showing no change as compared with the previous
Wednesday.
The moderate amounts of gold available in the open market have been
taken for export.
Quotations during the week:
Equivalent Value
of £ Sterling.
Per Ounce Fine.
13s. 8.54d.
123s. 11d.
Dec. 29
13s. 7.88d.
5d.
1245.
Dec. 30
13s. 8.764.
1235. 94.
Dec. 31
13s. 8.87d.
123s. 84.
Jan. 3
13s. 9.32d.
123s. 44.
Jan. 4
13s. 8.67d.
123s. 9.80d.
Average for above five days
The following were the United Kingdom imports and exports of gold
registered from mid-day on the 24th ultimo to mid-day on the 24 instant:
Exports.
Imports.
£649.537 United States of America_ £5,055,820
British South Africa
1,396,391
61,845 Netherlands
British West Africa
253,177
726,030 France
British India
11,000
Belgium
Straits Settlements and
1,098
countries
Other
33.518
Dependencies
18,004
Iraq
7,900
Egypt
10,399
New Zealand
102.018
France
60,995
Netherlands
2,733
Other countries
£6,717,486
£1,672,979
Gold to the value of over £1,400,000 was shipped from India last week.
about
The SS. Ranpura carries about £360,000, the SS. Clan Sinclair
consign£75,000 and the SS. City of Valencia about £22,500-all these
ments being for this country. The SS. President Pierce has about £990,000
consigned to New York.
The Southern Rhodesian gold output for November 1932 amounted
to 48,082 fine ounces, as compared with 50,416 fine ounces for October
1932 and 44,516 fine ounces for November 1931.
SILVER.
On selling from China, there was a decline of %d. on Dec. 29 to 163441.
for cash and 16 7-16d. for two months delivery, these being the lowest
quotations recorded during 1932. Sellers were more hesitant at this level
and a little support from America and China gave the market a steadier
tone, prices making a slight recovery. The Indian Bazaars have mEn
ortihe
further resales, but very quiet conditions prevailed over the turnyear, with little indication as to tendency.
exports
of
Kingdom
imports
and
silver
The following were the United
registered from mid-day on the 24th ultimo to mid-day on the 2d instantr
Exports.
Imports.
£27,652 Portugal
£31,175
Germany
17,991 Guatemala
3,818
Soviet Union (Russia)
37,211 Hongkong
3,454
Japan
13,412 Germany
1,447
Australia
4,290 Switzerland
1,210
British West Africa
2,801 Norway
1,123
British India
1,866 Other countries
2.814
France
2,367
Other countries
£107,590
Quotations during the week:
IN LONDON.
Bar Silver per Ounce Standard.
Cash.
2 Mos.
16 7-16d.
1634d.
Dec. 29
16 7-16d. 16344.
Dec. 30
169-16d.
16)4(1.
Dec. 31
169-led.
16344.
Jan. 3
169-164. 163/sd.
Jan. 4
Aver, for above
16.475d. 16.537d.
5 days

£45,041
IN NEW YORK.
(Cents per Ounce .999 Fine.)
Dec. 28
Dec. 29
Dec. 30
Dec. 31
Jan. 3

24%
2434
2411-16
24 11-16
24 13-16

The highest rate of exchange on New York recorded during the period
from the 29th ultimo to the 4th instant was $3.34 X and the lowest $3.33 X
INDIAN CURRENCY RETURNS.
Dec.22.
Dec. 15.
Dec. 7.
(In laes of Rupees)
17.475
17,490
17,5,34
Notes in circulation
11.149
11,161
Silver coin and bullion in India
11,268
1,854
1,854
Gold coin and bullion in India
1.175
4,472
4,472
Securities (Indian Government)
5,091
The stocks in Shanghai on the 31st ultimo consisted of about 146.000,000
ounces in sycee. 217,500,000 dollars and 6.280 silver bars, as compared with
about 146,000,000 ounces in sycee, 217,500,000 dollars and 6,880 silver
bars on the 24th ultimo.
Statistics for the month of December last are appended:
Bar
Bar Gold
Cash.
2 Mos.
Per Os, Fine.
17 13-164.
Highest price
17344.
130s. Hd.
16 7-16d.
Lowest price
1634d.
123s. 434d.
17.1104.
17.170d.
Average
125s. 8.9d.

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.,
Tues..
Jan. 14. Jan. 16. Jan. 17.
Silver, p. Os... 16 13-16d. 1632d. 16 13-16d.
Gold, p.fine oz.1228.8d. 1222.834d. 122s.8d.
Consols, 214% 7332
7334
7334
British. 314%
9834
98%
9814
W.L
British 4%
109
10834
108%
1980-90
French Rentes
77.40
77.00
(in Paris)3%fr. 77.40
French War L'n
(in Parts)5%
119.20
118.90
118.70
1920 amort

1Ved.,
furs..
Fri..
Jan. 18. Jan. 19. Jan, 20.
16344. 16 15-166. 16 15-164.
122s. 8d. 122s, 11d. 1225.1(34.
7234
7334
73
9834

0834

108%

10934

98%
109

77.30

76.80

76.80

118.80

118.50

118.80

The price of silver in New York on the same days has been:
Silver in N. Y.,
per oz. (cts.)

2514




2534

2534

2534

253.g

2534

Jan. 21 1933

PRICES ON PARIS BOURSE.
Quotations of representative stocks on the Paris Bourse
as received by cable each day of the past week have been
as follows:

Jan. 14 Jan. 16 Jan. 17 Jan. 18 Jan. 19 Jan. 20
1933. 1933. 1933. 1933. 1933. 1933.
Francs. Francs. Francs. Francs, Francs. Francs.
11,800 11,700 11,500 11,600 11,500 11,700
Bank of France
1,660 1,630 1,600 1,640 1,620 1,650
Banque de Paris ct Pays Bits
452
446
442
448
441
Banque d'Union Parisienne
355
342
359
350
Canadian Pacific
345
-581
17,105 17,050 16,960 17,240 17,300
Canal de Suez
2,215 2,175 2,180 2,200 2,200
Cie Distr d'Electricite
2,240 2,210 2,190 2,240 2,200 2:225
Cie Generale d'Electricite
63
63
61
66
54
Cie Generale Transatlantique
580
575
565
579
Citroen B
585
Comptoir Nationale d'Esoompte 1,160 1,150 1,150 1,170 1,160 1,iiii
160
160
160
170
160
160
COty Inc
377
372
363
368
Courrieres
366
__717
710
714
714
Credit Commercial de France
710
4,740 4,750 4,770 4,770 4,720 4-,780
Credit Fonder de France
2,100 2,100 2,090 2,110 2,090 2,120
Credit Lyonnais
Distribution d'Electricite Is Par 2,220 2,180 2,160 2,210 2,180 2,200
2,380 2.370 2,350 2,380 2.380 2,400
Eaux Lyonnais
645
642
635
642
_ _ __
Energie Electrique du Nord
630
988
990
983
993
Energie Eleetrique du Littoral
985
_ __ _
64
63
61
56
French Line
55
58
97
97
97
Galeries Lafayette
9797
830
830
830
820
Gas le Bon
-86
830
530
520
530
Kuhlmann
520
520
630
830
820
840
830
L'Air LiquIde
820
840
1,045 1,046 1,040 1,042 1,054
Lyon (S. L. M.)
370
360
380
370
Mines de Courrieres
360
-5775
480
480
490
480
480
Mines des Lens
490
1,480 1,480 1,460 1,460 1,450 1 460
Nord RY
990
990886
Orleans RY
1,090 1,070 1,070 1,585 1,060 1:520
Paris, France
131
129
131
129
128
Pathe Capital
1,150 1,120 1,100 1,140 1,130 1:145
Pechiney
77.40 77.40 77.00 77.30 76.80 76.80
Rentee 3%
118.90 119.20 118.70 118.80 118.50 118.80
Rentee 5% 1920
89.20 89.00 88.60 88.60 88.20 88.30
Reines 4% 1917
93.90 93.20 92.90 93.20 92.80 92.90
Renter; 434% 1932 A
1,620 1,690 1,560 1,500 1,550 1,580
Royal Dutch
1,440 1,420 1,406 1,443 1,435
Saint Gobaln C. & C
_--1,345 1,335 1,336 1,343 1,350
Schneider & Cie
570
560
580
580
570
Societe Andre Citroen
-86
102
103
101
101
101
Societe Francais° Ford
103
172
173
169
168
Societe Generale Fouler.)
167
188
2,380 2,370 2,350 2,380 2,350
__ -Societe Lyonnaise
600
600
600
600
Societe Marseillaise
600
17,000
16,900
17,100
17,200 17,208 17:205
Sues
183
182
190
185
Tublze Artificial Silk prof
188
800
790
790
800
Union d'Electricite
780
-68
210
Union des Mines
--------210210
80
77
80
80
Wagon-Lila

THE BERLIN STOCK EXCHANGE.
The Berlin Stock Exchange resumed trading on Friday,
April 29 1932,after having been closed by Government decree
since Sept. 18 1931. Closing prices of representative stocks
as received by cable each day of the past week have been
as follows:
Jan. Jan. Jan, Jan, Jan.
14.
16.
17.
18.
19.
Per Cent of Par
162 160 156 157 159
Reichsbank (12%)
95
94
94
Berliner Handels-Gesellschaft (4%)
94
94
63
53
53
53
Commerz-und Privat-Bank A.0
53
73
73
73
Deutsche Bank und Disconto-Gesellschaft- 73
73
62
62
62
Dresdner Bank
62
62
92
92
Deutsche Reichsbahn (Ger. Rys.) Pf.(7%)- 92
92
92
29
10
3
Aligemeine Elektrizitaets-Gesell. (A.E.G.)_ 13
29
29
Berliner Kraft u. Licht (10%)
117 118
101i 109 108
Dessauer Gas (7%)
79
81
84
Gesfuerel (4%)
80
79
117 116 113 112 113
Hamburg. Elektr.-Werke (834%)
126 123 121 122 123
Siemens dc EWA°(9%)
104 102 100 101
I. G. Farbenindustrie (7%)
102
179 174 172 172 174
Salzdetfurth (9%)
194 194 193 192 100
RheinIsche Braunkohle (10%)
92
89
87
Deutsche Erdoel (4%)
87
87
64
62
60
Mannesmann Roehren
60
60
19
18
17
Hapag
17
17
20
19
18
Norddeutscher Lloyd
18
18

Jan.
20.
159
94
53
73
62
92
29
118
109
80
114
121
103
175
192
88
60
18
18

In the following we also give Now York quotations for
German and other foreign unlisted dollar bonds as of
Jan. 20 1933:
Bid
46
Annan 78 to 1945
Argentine 5%. 1945. 510047
pieces
22
Antioquia 8%. 1946
Bank of Colombia. 7%.'47 22
Bank of Colombia, 7%,'48
5914
Bavaria 8348 to 1945
Bavarian Palatinate Cons.
45
Cit. 7% to 1945
Bogota (Colombia)634.'47 (18
Ai
Bolivia 6%, 1940
Brandenburg Elea. 68. 1953 671
3422
Brasil Funding 5%.
British Hungarian Bank
13612
734e, 1962
Brown Coal Ind. Corp.
63
6)4s. 1953
Call (Colombia) 7%, 1947- /8
Callao (Peru) 734%. 1944_ 15
Ceara (Brazil) 8%. 1947-. /3
City Savings Bank. Buda13122
peat. 78, 1953
Deutsche Bk 6% '32 timed /851
Dortmund Mun. Util 68.'48 4612
46
Duisberg 7%to 1945
46
Dusseldorf 78 to 1945
East Prussian Pr. 66. 1953. 58
European Mortgage & In140
vestment 734s, 1966
French Govt. 15348. 1937.. 10612
FrenchNat. Mail S5.68.'52 107
45
Frankfurt 7s to 1945
German AU. Cable 78, 1945 74
German Building & Land54
bank 634%. 1948
66
Haiti 6% 1953- ____
Hamb-Am Line 834e to '40 68
Hanover Harz Water Wks.
43
6%. 1957
Rousting & Real Imp 7s.'46 5612
Hungarian Cent Mut 7s.'37 13511
Hungarian Discount & Exchange Bank 7e. 1963._ /2312
I Flat Price.

Ask
50

Bid Ask
17012 7312
53
56
53
56
63
65
Leipzig
Trade
talB
k 77s.153
LanlMBkWara:1:941
32 4612 4712
Luneberg Power, Light &
48
51
62
66
to
5314 6014
45
50
Municipal Gas & .
E1ec C11
lieck1lng
Obervtase7
uen
zater7'l948
iaiaan
Ig45 :
lne1mPa1t78
unoBkeme;.78
1 45
Leipg0.dP6::'48
11
1
41. 49
51
6814 7014
7.15Naubn:6i3tce.ral B :f
Hungary7Savings
141
4212
Natio
31
/30
55
60
Oidenburg-Fre State 7%
to 1945
46
50
Porte Aicare 7%, 1958...
1212
Protestant Church (Ger 191
many) 78„ 1948
51
53
Prov Bk Weetphalla 6s,.33 78
79
Rhine Westph Elea 713. 1936 701
7312
Rio de Janeiro 6% 1933
/61
942
Rom Catb Church 6328
64
66
R C Church Welfare ,'46 491
5012
Saarbruecken M Bk 6s
78.'47 75
80
Salvador 7%, 1957 *
1131
1414
Santa Catharina (Brazil)
8%. 1947
17
10
Santander (Colom)7s, 1948 110
13
Sao Paulo (Brazil) 821 1927 19
12
Saxon Public Works ik '32 f73
77
Saxon State Mtge fls, 1947_ 02
65
Stem & Mask° deb 8s, 2930 380 410
South Amer Rye 8%,1933
63
65
Stettin Pub Util 7e, 1946.: 58
61
Tucuman City 7s, 1951._ /14
17
Vesten Else AY 7e, 1947
46
471s
Wurtenberg 7s to 1945._.. 58
62
Konolyt 632s, 1943
ftungftra
unoh7a

24
25
6014
50
712
20
6812
3612
3812
65
11
8
7
3312
8812
4912
10
50
59
41
/0812
108%
50
77
56
71
75
48
5912
3712
25

Financial Chronicle

CASH AVAILABLE TO PAY MATURING OBLIGATIONS.
Oct. 31 1932. Oct. 31 1931.
Balance end of month by daily statements. &O
754,730.499
Add or Deduct—Excess of deficiency of receipts over
or under disbursements on belated items
—12,330,477
Deduot outstanding obligations:
Matured interest obligations
Disbursing officers' checks
Discount secured on War Savings Certificates
Settlement on warrant checks
Total

292.062,263
—9,474,533

742,400,022

282,587,730

44,444,917
86,291,642
4,317,575
2,512,057

39,870,757
86,770,738
4,628,390
4,290,135

137,566,191

135,560,020

Balance, deficit(—) or surplus (+)--

+604,833,831 +147,027.710
INTEREST-BEARING DEBT OUTSTANDING.
Interest Oct. 31 1932. Oct. 31 1931.
Title of Loan—
Payable.
a
S
28 Consols of 1930
Q.-J. 599,724,050
599,724,050
Q.-F.
48,954,180
2s of 1916-1930
48,954.180
Q.
-F.
25,947.400
28 of 1918-1938
25,947,400
@ -M
49.800.000
49,800,000
3s of 1961
Q,-J.
28,894,500
28,894,500
38 conversion bonds of 1946-1947
J -S 2,043,836,100 1,523,770,000
Certificates of indebtedness
J -J. 1,392,227.850 1,392,239,350
3345 First Liberty Loan. 1932-1947
5,002,450
J.-D.
5,003,950
48 First Liberty Loan, converted 1932-1947
532,792,850
4303 First Liberty Loan, converted 1932-1947...J.-D. 532,491,150
3,492,150
J.-D.
3,492,150
4%s First Liberty Loan, 2d cony., I932-1947
A.-0. 6,268.099,450 6,268,218,450
4)4s Fourth Liberty Loan of 1933-1938
758.983.300758,983,300
4%s Treasury bonds of 1947-1952
1,036,834,500 1,036,834,500
48 Treasury bonds of 1944-1954
489,087,100
489.087,100
3345 Treasury bonds of 1946-1956
454,135,200
493.037,750
3)4s Treasury bonds of 1943-1947
352,994,450
359,042,950
3345 Treasury bonds of 1940-1943
544,916,050
3348 Treasury bonds of 1941-1943
594,230,050
821,402,000
3345 Treasury bonds of 1946-1949
821,406.000
800,418,000
800,421,800
3s Treasury bonds of 1951-1955
43,453,360
27,207,900
2145 Postal Savings bonds
3,539,401,800
Treasury notes
645,376,950
Treasury bills. series maturing Nov. 9 1932
c75,217.000
Treasury bills, series maturing Nov. 16 1932
c75.016.000
Treasury bills, series maturing Nov.23 1932
c62,350.000
Treasury bills, series maturing Nov,30 1932
c100,500.000
Treasury bills, series maturing Dec. 28 1932
c100.665.000
Treasury bills, series maturing Jan. 11 1933
c75,954.000
Treasury bills, series maturing Jan. 18 1933
75.110,000
Treasury bills, series maturing Jan. 25 1933
c80,295,000
Treasury bills, series maturing Jan. 13 1932
c51.641.000
Treasury bills, series maturing Jan. 25 1932
c,51,338.000
Treasury bills, series maturing Nov. 2 1931
c59,850,000
Treasury bills. series maturing Nov. 9 1931
c60,005.000
Treasury bills. series maturing Nov. 16 1931
c60,280,000
Treasury bills, series maturing Nov. 23 1931
030,001.000
Treasury bills, series maturing Nov.30 1931
c80,019,000
Treasury bills, series maturing Dec. 30 1931
c100,761,000
Aggregate of interest-bearing debt
Bearing no interest
Matured, interest ceased

20,485,202.040 17,028.360.180
272,819,705
231,905,307
54,519,390
31,448,060

Total debt
Deduct Treasury surplus or add Treasury deficit

(x20.812,541.135 17,291,713,547
604,833,831 +147.027,710

Net debt
620,207,707,304 17,144,685.837
a Total gross debt Oct. 31 1932 on the basis of daily Treasury statements was
$20,812,541,385.01 and the net amount of public debt redemptions and receipts
In transit, &c., was $250.25.
b No reduction is made on .account of obligations of Foreign Governments or
other investments.
c Maturity value.

Stocks—

Abitibi P & Pap 6% pfd 100
Alberta Pac Grain pref100
•
Beatty BIOS COM
100
Preferred
100
Bell Telephone
Brantford Cord 1st pref 25
Brazilian T L & Pr corn..°
•
B C Packers corn
B C Power A
B
Building Products A
Burt (F N) Co. Corn.,...25
•
Canada Bread corn
100
B preferred
Canada Cement com____*
*
Preferred
Canada Steamship pref_100
•
B
Cable
Canada Wire &
Can Canners cony pref_ •
100
let preferred
Canadian Car Fdy nom_
25
Preferred
50
Can Gen Elea pref
Can Indus Alcohol A____•
*
Canadian Oil corn
Canadian Pacific Ry _ --25
•
Cockshutt Plow corn
Consolidated Bakeries_ •
Cons Min & Smelting_ _ _25
100
Consumers Gas
Dominion Stores, com---•
Fanny Farmer pref
Ford Co of Canada A_ ___•
Goodyear T & Rub pref 100
Gypsum LiT e & Alabast.*
Hunts Ltd A
Internatl Mill Is pref__100
International Nickel com_•
Kelvinator of Can com_ •
Laura Secord Candy nom_•
Loblaw Groceterlas A.......•
•
Massey-Harris corn
Moore Corp corn
100
A
100
B
Nat Sewer Pipe
Page-Hersey Tubes corn.•
Photo Engrav & Electro--•
Riverside Silk Mills A_.
.t
100
Simpson's Ltd
pref.Standard Steel Conscom-•
Steel Coot Canada corn._•
25
Preferred
•
Walkers Hiram corn
*
Preferred
Union Gas
Bank—
Commerce
Dominion
Imperial
Montreal
Royal
Toronto

celanzonsgems
gnus

Foreign Trade of New York—Monthly Statement.
Merchandise Movement at New York.
Month.

Imports.
1932.

January
FebruaryMarch-April
May
June
July
August- _
September
October
Total.

1931.

$
I
$
65.450.212 87,278.807
68,324,224 83.741.723
67.088,157 101.718,797
61.785,558 90,924.314
52,497,4961 83,714,133
52,482,112 89,982.205
37,656,849 84.823,0901
43,067,6311 81.423.4551
48.988.212 94,872,046
54.474.9281 92.059.201

Exports.

Custom Receipts
at
New York.

1932.

1931.

1932.

1931.

$
44,388.825
47,040,635
48,261,354
42,176,624
38,337.589
36,817,616
35.157,319
31,607.397
36.988.907
38,279,461

94,604,323
91.336.302
85,927,653
80,714,213
74,505,792
74,235.1311
67.058,129
59,208,716
67,749,0871
65.352,2681

13,177.166
12.756,949
12,047,238
10,741,892
9.019.643
9,079.203
7.704.834
11,864.718
14,253,710
13,883,709

$
15.764.232
15.741.196
17.612.788
14,702.264
13.569.915
14,455.069
17,237,635
20.162.713
21,683,259
18.506.473

551,815,3791890,537,771'399,055,727 760,691,614114.529,062 169,435,544

Movement of gold and silver fo, ten months:
Gold Movement at New York.
Month.

Imports,
1932.

January_ _
February.
March-___
April
May
June
July
August__ _
September
October
Total.--

1931.

Silver—New York.

Exports.
1932.

1931,

$
s
$
9.404,455107,842.041
11.309.143128.185,769
2,000
20,320.531 43,902,866
36.213,539 49,480,976
46,392,331212,143.353
20,000
35,321,267226,087,954
37.000
10,926.608 23,472,951 1,000.328
32,600
25,844.790 18.058,424
35.00028,690.327
35,034.9451
35,000398,471,056
25,656,339
1
80,916,165256,423.948809,244,334428,253.211
$
19,067.937
7,221,315
6,630,355
3,164,462
2.919.081
2.229,613
2,484,659
10,268.482
16.170,722
10.759,5391

Imports.

Exports.

1932.

1932.

$

$
919.079
572,257
829,844
494,562
1,116.271
700,483
1.229,933
715.007
992,889 1,600.430
616,597 1.036.089
213.623
533,848
738,216
272.409
781,306
554,106
353,207
650,348
7,790,965

7,129,539

Toronto Stock Exchange.—Record of transactions at
the Toronto Stock Exchange, Jan. 14 to Jan. 20, both inclusive, compiled from official sales lists:




97
9%
1

25
134
334
4

10%
9
151%
4
5834
173
1634
7%
88
2
934
1134
334

16
50
8
16%
4
9%

100 138
100
100 155
100 180
100
100

Loan and Trust—
Canada Permanent _ _ _ _100 142
Economic Invest
50
Huron & Erie Mortgage 100 100
20% paid
•
100
National Trust
100
Real Estate Loan
Toronto General Trusts 100

1% 1%
2014 2034
334 5
56
56
9434 97
19
19
8% 9%
1
114
16
16
4
4
12
12
25
2634
1%
1%
10
10
3
3%
19% 1934
4
4
8
8%
4% 5
52
53
4
4
10% 11
55
55
I% 2
9
9
14% 1534
3% 4
2%
2
5734 6034
172 175
1634 17
23
23
7% 7%
88
88
I% 2
634 634
98
98
8% 9%
134 I%
37
37
II% II%
334
3
7
7
71% 73
86% 8634
16
16
51
50
9
9
8
8
11
11
2% 2%
1634 1634
26
27
4% 5
9% 9%
3% 334

50
5
20
10
275
88
1,361
100
5
10
10
183
125
1
570
94
55
557
165
20
10
45
10
220
5
2,695
45
76
475
48
704
66
496
25
290
15
10
5,568
190
15
852
880
40
25
10
100
30
60
10
2
15
70
22
1,104
1,06
50

I
2034
3%
56
92
18
8%
1
1534
4
12
25
134
10
2%
1734
3
8
4%
5034
3)1
10
55
I%
9
1434
3%
2
57%
170
16%
23
734
88
I%
6%
98
8%
134
37
1134
2%
7
71%
8634
16
50
9
7
9
2%
1634
26
434
9%
3%

Jan
I%
Jan 2134
Jan
5
Jan 56
Jan 97
Jan
19
Jan 10
Jan
134
Jan 1634
Jan
4%,
Jan 12
Jan 28
Jan
I%
Jan 10
Jan
3%
Jan 19%
Jan
4
Jan
8%
Jan
5
Jan 53
Jan
4
Jan II%
Jan 5634
Jan
2
Jan
9
Jan 1634
Jan
414
Jan
2%
Jan 68
Jan 173
Jan 17%
.Ian 23
Jan
734
Jan 91
Jan
2
Jan
8
Jan 99
Jan
934
Jan
I%
Jan 38
1134
Jan
Jan
334
Jan
7
Jan 79
Jan 86%
Jan
16
Jan 53%
Jan
934
Jan
8%
Jan 12
Jan
234
Jan 17
Jan 27
5%
Jan
Jan
9%
Jan
4

Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan

138
147
155
180
141
171

140
147
155
185
143
172

84
13
13
71
59
15

137
135
148
180
137
164

140
7%
100
18
208
85
166%

144
7%
100
18
208
85
166%

36
25
16
25
5
10
2

140
Jan 153
Jan
734 Jan
734 Jan
100
Jan 102
Jan
Jan
18
Jan
18
Jan 212
Jan
208
Jan 95
Jan
85
16634 Jan 166341Jan

Jan
Jan
Jan
Jan
Jan
Jan

140
148
155
189
143
170

Jan
Jan
Jan
Jan
Jan
Jan

• No par value.

Toronto Curb.—Record of transactions at the Toronto
Curb, Jan. 14 to Jan. 20, both inclusive, compiled from
official sales lists:

Stocks—

(Commercialand:

Friday
Sales
Last Week's Range for
Range Since Jan. I 1933.
,Sole
of Prices.
Week.
Par. Price. Low. High Shares.
Low.
High.

Friday
Sates
Range Since Jan. 1 1933.
Last Week's Range for
Sale
of Prices.
Week.
Low.
Par. Price. Low, High. Shares.
High.

63
Biltmore Hats pref.. __100
Brewing Corp corn*31
1%
I%
Preferred
634
6%
Canada Bud Brewer nom.*
1334
• 13%
Canada Malting Co
15
Canada Vinegars com _ _ _ _•
434
Can Wire Bound Boxes A_•
6
Canadian Paving pfd
I%
Cosgrave Export Brew_ _10
4%
4%
Distillers Corp Seagrams_•
17
Dominion Bridge
• 17%
2
2
Dom Motors of Canada_10
46%
Dominion Textile
66
Goodyear Tire & Rub corn.
Hamilton Bridge com
3
*
14%
Humberstone Shoe com_ *
8
Imperial Tobacco ord. ._5
Montreal I. H & P Cons_ _* 30% 3034
734
National Steel Car Corp_ •
8
Power Corp of Can com_ •
3
3
Servrce Stations com A_ .. _•
20
100
Preferred
12%
Shawinigan Wat Is Pow_ •
Tamblyns Ltd 0 pref__100
88
14
Toronto Elevators com_*
United Fuel Invest pref.100
534

65
31
1
6%
14
15
4%
6
I%
4%
17%
234
46%
66
334
17
8
31%
7%
8
334
20
12%
88
14
5%

Oil—
British American Oil
•
Crown Dominion Oil Co *
Imperial 011 Limited
•
International Petroleum_ _•
McColl Frontenac Oil corn*
Preferred
100
North Star Oil corn
5
Supertest Petroleum corn*
Ordinary
•
Preferred A
100
* No par value.

834
3
9%
II%
8
60
1%
13
13%
95

8
8%
11%
8
13.4
13
95

754
3
834
11%
8
60
I%
12
12%
95

CURRENT

W..
w
.10.
NW
..+NwNW.Ip...4-4NON NNWWN.MN•PW .,INN
0004.W0..01000.00041001010010.140O,...0

Public Debt of the United States—Complete Return
Showing Net Debt as of Oct. 31 1932.
The statement of the public debt and Treasury cash holdings of the United States, as officially issued Oct. 31 1932,
delayed in publication, has now been received, and as interest
attaches to the details of available cash and the gross and
net debt on that date, we append a summary thereof, making
comparison with the same date in 1931:

449

63
%
1
6
13%
13%
434
6
134
4%
16%
1%
46%
66
2%
1434
8
30%
6
8
3
20
1034
88
14
5

Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan

N
N
Ww.
C."
-.1 111
.0.N00N.4N0.0
00000001W0N

Volume 136

734
3
8%
1134
8
60
134
12
1234
93

Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan

65
%
I%
634
14
1534
4%
10
134
5
17%
234
46%
66
334
17
834
32
8
8%
334
20
12%
88
14
9%

Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan

834 Jan
334 Jan
9% Jan
Jan
12
Jan
9
Jan
60
134 Jan
Jan
13
Jan
14
Jan
95

NOTICES.

—The firm of Reichart, Springer & Co., Inc., has changed its name
to G. J. Springer & Co., Inc., it is announced by George J. Springer, who
has been elected President and under whose direction the business will
be continued.
—Cowen Is Co., members of the New York Stock Exchange, announce
that Charles H. De Loca has become associated with them in charge of
their public utility bond department.
—Hornblower & Weeks have prepared a special analysis of the Chase
National Bank stock and of the National City Bank stock.
—B. J. Van Ingen & Co., Inc., have issued a list of New Jersey and
New York municipal bonds yielding from 2 to 5.75%.

450

Financial Chronicle

Bank Notes-Changes in Totals of, and in Deposited
Bonds, &c.
We give below tables which show all the monthly changes
in National bank notes and in bonds and legal tenders on
deposit therefor:
Amount Bonds
on Deposit to
Secure Otrcula
ion for National
Bank Notes.
Dec. 31 1932
Nov.30 1932
Oct. 31 1932
Sept.30 1932
Aug. 31 1932
July 30 1932
June 30 1932
May 31 1932
Apr. 30 1932
Attar. 31 1932
Feb. 29 1932
Jan. 30 1932
Dee. 31 1931

$
796,908,870
812,590,590
799,672,590
780.377.630
793.600,490
672,408.440
870.487,590
61)9.827,590
888.882,490
667,669,240
864.944.440
680,409,240
668.474.590

National Bank Circulation
Afloat onBonds.
$
786,734,150
796,032,621
787,913.945
769.831,107
719.829,513
667.831.250
689,570,345
668.580.423
666.472,241
666.238,578
665,138.348
654.580.738
684.798.311

Legal
Tenders.

Total.
$
881,330,848
875.880.903
863,075.900
832.022.785
783.406.353
733.877.423
736,674.213
738.616.923
737,996,081
737.939.263
732,377.223
715.764,618
710.611.896

94,596,698
79.848.287
75,161,955
62.191.678
63.576,840
66.046,173
67.103,868
70,036.500
71.523,840
71,700.685
67,238.875
81,183,878
45,813.585

$2,694,012 Federal Reserve bank notes outstanding Jan. 3 1933, secured by
lawful money, against $2,863,300 on Jan. 2 1932.

The following shows the amount of each class of United
States bonds and certificates on deposit to secure Federal
Reserve bank notes and National bank notes Dec. 311932:
U. S. Bonds Held Dec. 31 1932 to SecureBonds on Deposit
Jan 3 1933.

On Deposit to On Deposit to
Secure Federal
Secure
Reserve Bank National Bank
Notes.
Notes.
$

28,U. S Consols of 1930
2s. U. S. Panama of 1936
28, U. B. Panama of 1938
as. U. S. Treasury of 1951-1955
334s. U.S. Treasury of 1946-1949
3148, U. S. Treasury of 1941-1943
334s, U. B. Treasury of 1940-1943
334s, U.S. Treasury of 1943-1947
3s. U. S. Panama Canal of 1961
3s, U. S. convertible of 1948-1947
Totals

Total
field.

$
566,583.800
46,614.560
24,573,860
45,857,950
32,679,900
32,786.400
18,667,950
28,138,450
1.000
1.005,000

$
566,583,800
46,614,560
24,573,860
45,857.950
32,679,900
32,786,400
18,667,950
28,138.450
1,000
1.005,000

796.908,870

796,908,870

The following shows the amount of National bank notes
afloat and the amount of legal tender deposits Dec. 1 1932
and Jan. 3 1933 and their increase or decrease during the
month of December:
National Bank Notes-Total AfloatAmount afloat Dec. 1 1932
Net increase during December
Amount of bank notes afloat Jan. 3
Legal Tender NotesAmount on deposit to redeem National bank notes Dec.1
Net amount of bank notes issued in December
Amount on deposit to redeem National bank notes Jan.3 1933

$875,880.908
5.449,940

By Adrian H. Muller & Son, New York:
Shares.
Stocks.
$ per Share.
32,000 Mills & Gibb Corp. (N. Y.), par $I
$2,832 lot
141 Hudson View Gardens, Inc.: Proprietary lease for Apartment 41, In the
premises known as Hudson View Gardens
$1,000 lot
38 2-3 Latham Machinery Co., par $100
$3,900 lot
100 Quality Laundry Service, Inc.. 2d pref., par $100
$2 lot
100 American Trust Co. (Baltimore), Dar $50
$20 lot
20 East & West Ridgelawn Cemeteries(N. J.), common, no par
$50 lot
18734 Kaufwein Realty Co., Inc.; 25 1265 Gerard Avenue Corp
3500 lot
70 Rockland Discount Corp. preferred
$31 lot
20 Rockland Discount Corp. common
$2 lot
15 Cuban Cane Products Co., Inc., corn., no par: 20 Cuban Cane Products
Co., Inc., option warrants, par 320; 100 Van Su eringen Corp., corn., no
par; 10 Lampoon Silver-Black Fox Co., Ltd., par $100; 259 Standard Coupler
Co., Corn., par $100: 10 Standard Coupler Co., pref., par $100;6 Towne Securities Corp., corn., no par; 3 Towne Secur. Corp., 7% pref., par $100
$30 lot
300 American Controlled Oilfields, Inc., par 55; 30 Casa Oil Co., par $10;
800,000 marks Reichsbank notes dated Jan. 19 1922:$83 demand promissory
note of Howard C. Dickinson, dated Aug. 17 1927; $150 demand promissory
note of Henry J. O'Neill. dated June 11 1927
510 lot
100 Hughes Petroleum Co., no par; 40 Kanak Co., Inc., corn., par $10; 50
Kanak Co., Inc., pref.. par $10; 163 Lorraine Petroleum Co., corn., par
1 cent; 50 Lorraine Petroleum Co., pref., par $10; 20 Pine Tree Pulp Co.,
Par $100; 50 Spanish River Land Co., no par; 1 The Yale Leasing Corp.,
par 5100; 1 Ardsley Estates, Inc., no par: 5 certificate of beneficial interest
in assets formerly owned by the Irving Bank: 52,020.07 Judgment against
Douglas G. Arcularius. Boca Raton Club, certificate of panic. ownership_ _352 lot
BondsPer Cent.
$25,750 Aldecress Corp. 6% income mtge. bonds, due 1953
$500 lot
$500 Louisiana Ice & Utilities, Inc., 6% series A, due Apr. 1 1946
$40 lot
$1,000 Madison Clark Bldg. 634% serial gold bond, due March 15 1942
$14 lot
$1,000 Fox Valley Hotel Co. 1st mtge. 634% elf, of deposit
$11 lot
$1,000 American Steel Car Lines, 5% equip. ctf., due March 1 1941
$39 lot
$1,000 American Steel Car Lines 5% equip. gold ctfs. ($200 due Sept. 1 1940;
$400 due on March 1 1941; $400 due on Sept. 1 1941)
$45 lot
$3,000 Mikesell Co. 834% secured gold debenture
$12 lot
$1,000 Orange Crush Holding Corp. 6% deb., series B
$4 lot
$100 Associated General Contractors of America. Inc., 5-year 5% gold ctf___.$4 lot
$250 Southern Land & Timber Co.,734% purchase money mtge. gold bond
$3 lot

By Barnes & Lofland, Philadelphia:
Shares. Stocks.
$ per Share,
200 Glen Willow Ice Manufacturing Co., par $10
234
6 First National Bank of Philadelphia, par 3100
280
10 Philadelphia National Bank, par $20
6414
25 Central-Penn National Bank, par $10
2834
20 Erie National Bank, par $100
334
15 Chase National Bank, New York, par $20
34
15 Corn Exchange National Bank & Trust Co., par $20
43
75 First National Bank & Trust Co., Milford, Del
46
10 Pennsylvania Co.for Ins. on Lives & Granting Annuitles, par 810
4534
14 Integrity Trust Co., par $10
s
5 Girard Trust Co., par 310
86
10 Camden Safe Deposit & Trust Co., Camden, N. J.. Dar $25
85
100 Muskogee Co., common, no Par
5
3 Hestonville, Mantua & Fairmount Pass. Ry. Co., pref., par 550
2034
10 Mrs. Smith's Delicious Home Made Pies, Inc., common
7
20 Victory Insurance Co., par Sit)
51
BondsPer Cent.
$5,000 Altoona & Logan Valley El. Ry. Co.4)4% 1st consol., due Aug. 15'33_ 3034
$1,000 Johnstown Traction 5s, 1043, cUs, of deposit
$26101

By A. J. Wright & Co., Buffalo:
Shares.
Stocks.
1,000 Adargas Mines, par 1 peso
40 Thermiodyne Radio Corp.. no par

$ per Share.
50o. lot
25c. lot

$881,330,848
179,848,287
14,748,411
894.596,698

National Banks.-The following information regarding
National banks is from the office of the Comptroller of the
Currency, Treasury Department:
CHARTERS ISSUED.
Capital.
Jan. 2-The Ouachita National Bank in Monroe, La
8500,000
President, F. F. Millsaps; Cashier, W. O. Oliver.
Succeeds the Ouachita National Bank of Monroe,
Monroe, La.
Jan. 4-First National Bank of Herons, Herons. Texas
50,000
President, W.T.Stockton; Cashier. Luther Westbrook.
To Succeed the First National Bank of Kerens, and the
Herons National flank. Kerens, Texas.
Jan. 7-The Depositors Nat. Bank of Durham, Durham, N.0. 200,000
President. S. O. Chambers; Cashier, It. II..Sykes.
Jan. 12-The First National Bank in Ligonier, Ligonier, Pa
100,000
President, C. 8. Marvel; Cashier, C. G. Gonder.
Succeeds Ligonier National Bank, Ligonier, Pa.,
Charter No. 13432.
CHANGE OF TITLE.
Jan. 11-The Merchants-Citizens National Bank & Trust Co.
Of Allentown, Pa. to "The Merchants National Bank
of Allentown."
Jan. 14-Monroe County National Bank & Trust Co. of East
Stroudsburg. Pa. to "Monroe County National Bank
of East Stroudsburg."
VOLUNTARY LIQUIDATIONS.
Jan. 12-The First National Bank of Steele, N. Dak
$25,000
Effective Dec. 28 1932. Liquidating Agent, P. W.
Clemens, Fargo, N. Dak. Succeeded by Bank of
Steele, N. Dak.
Jan. 13-The National Bank of Witt, Ill
50,000
Effective Jan. 10 1933. Liquidating Agent, H. S.
Armentrout, Witt, Ill. Succeeded by the Security
National Bank of Witt, Charter No. 13650.
Jan. 13-The First National Bank of Paden. Okla
25,000
Effective Dec. 31 1932. Liquidating Agent, A. It.
Novotny, Paden. Okla. Absorbed by the Prague
National Bank, Prague, Oklahoma, No. 8159.

Auction Sales.-Among other securities, the following,
not actually dealt in at the Stock Exchange, were sold at auction
in New York, Boston, Philadelphia and Buffalo on Wednesday of this week:
By R. L. Day & Co., Boston:
$ per Share.
Shares. Stocks.
2 State Street Trust Co., Boston, par $100
10 Hamilton Woolen Co., par $100
9 South Terminal Trust, par 5100
12 Tremont Building Trust, par $100
24 Boston Ground Rent Trust, par $100
14 Hotel Trust (Touraine), par $100
8 State Street Associates. par $100
14 Splitdort Bethlehem Electrical Co
50 Brown Company 8% preferred, par 3100
125 Wickwire Spencer Steel Co. common voting trust certificate, par $100
6 units First Peoples Trust
2 Massaehusetta Lighting Cos. $8 pref. trust Certificate
1 Collateral Loan Co.. Dar $100




Ian. 21 1933

21334
45
5
3634
25
1234
3
$1 lot
2
$1 lot
3
80H'
8534

DIVIDENDS.
Dividends are grouped in two separate tables. In the
first we bring together all the dividends announced the
current week. Then we follow with a second table, in
which we show the dividends previously announced, but
which have not yet been paid.
The dividends announced this week are:
Name of Company.
Railroads (Steam).
Dallas Ry & Terminal, 7% pref. (qU.)-North Carolina, 7% pref. (8.-a-)

When
Per
Cent. Payable.

Books Closed
Days Inclusive.

134 Feb. 1 Holders of ree. Jan. 20
334 Feb. 1 Holders of rec. Jan. 20

Public Utilities.
150. Feb. 10 Holders of rec.
American Cities Pwr.& Lt., series
Jan. 28
City Water & Chattanooga (Tenn.)
134 Feb. I Holders of rec. Jan.
6% preferred (quar.)
20
15
Concord Gas, preferred (quar.)
134 Feb.
Holders of rec. Jan. 31
Connecticut Ry.& Light Co.corn.(qu.). $1.125 Feb. 15 Holders of rec. Jan. 31
$1.125 Feb. 15 Holders of rec. Jan. 31
Preferred (guar.)
Cumberland Co. Pwr..6% pref.(quar.). 134 Feb. 1 Holders of rec. Jan. 14
134 Feb. 1 Holders of rec. Jan.
Dallas Power & Light,7% pref. (quar.)_
21
$1 34 Feb. 1 Holders of ree. Jan. 21
$6 preferred (quar.)
134 Feb. 1 Holders of
Davenport Water, 6% pref. (quar.)
rec. Jan.
Derby Gas & Elec. Corp.,$634 pt. (qu.)_ $144 Feb. 1 Holders of rec. Jan. 20
20
$134 Feb. 1 Holders of
$7 preferred (quar.)
6234e. Jan. 25 Holders of rec. Jan. 20
Fed. St.& Pleasant Val.Pass. Ry.
rec. Jan. 20
200.
Honolulu Gas, common
154 Feb. 1 Holders of rec. Jan.
Houston Ltg. & Pwr.,7% pref. (quar.)
14
$lyi Feb. 1 Holders of
$6 preferred (quar.)
rec. Jan. 14
134 Feb. 1 Holders of
Idaho Power Co., 7% pref.(qua:.)
rec.
Jan.
14
$134 Feb. 1 Holders of roe.
$6 preferred (quar.)
34 Feb. 1 Holders of rec. Jan. 14
Kokomo Water Wks. Co.,6% Pf. 9914Jan. 20
Louisville Gas & Elec., ser A&B(quar.)- 4314 Mar.25 Holders of rec. Feb. 28
138. Jan. 30 Holders of
Malone Light & Power Co.(monthly)--reo. Jan. 20
15c. Feb. 27 Holders of roe.
(Monthly)
15o. Mar,30 Holders of rec. Feb. 20
(Monthly)
Mar.20
134 Feb. 1 Holders of
Mississippi Pr.& Lt., 1st Pref.
rec. Jan. 14
Monmouth Consol. Vat., 7% pf. (cm). 134 Feb. 15 Holders of reo. Feb. 1
Feb. 15 Holders of rec. Jan. 31
Montreal Lt., Ht.& Pr. Co.(quer.). _ $2
25c. Mar. 1 Holders of rec. Feb. 11
National Power & Light (quar.)
75o. Feb. 1 Holders of rec.
New Amsterdam Gas (8.-a.)
Jan. 25
New England Water, Light & Power
134 Feb. 1 Holders of rec. Jan. 20
Association, pref. (guar.)
Nor. N. Y. Utilities, Inc. (monthly)._.. 12H c. Feb. 27 Holders of rec. Feb. 20
12340. Mar,30 Holders of rec.
(Monthly)
Mar.
Pacific Gas & El. Co., 6% cum. pt.(qu.) 373l o. Feb. 15 Holders of rec. Jan. 20
31
(quar.)
preferred
3414c.
%'oum.
Feb. 15 Holders of rec. Jan. 31
5
134 Feb. 1 Holders of rec. Jan. 18
Pacific Pr.& Light Co.,7% pref.(qu.)
g134 Feb. 1 Holders of rec. Jan. 18
$6 preferred ,(quar.)
25c. Apr. 1
Peninsular Telephone Co., corn.(quar.)_
25e. Mar, 1 Holders of rec. Feb.
Philadelphia Co.,5% pref. (5.-a.)
10
Portland,Gas & Coke Co., Ore.,7% pref
134 Feb. 1 Holders of rec. Jan. 18
(guar.)
6% preferred (quar.)
134 Feb. 1 Holders of ree. Jan. 18
60e Mar. 31 Holders of
Public Service Corp. of N. J., corn. (111.)
rec. Mar. 1
2
8% preferred.(quar.)
Mar. 31 Holders of rec. Mar. 1
134
preferred
Mar. 31 Holders of rec. Mar. 1
(guar.)
7%
13.4 Mar,31 Holders of rec. Mar. 1
5% preferred;(quar.)
500 Feb. 28 Holders of rec. Feb. 1
6% preferred (monthly)
50c. Mar. 31 Holders of roe. Mar. 1
8% preferred (monthly)
25c Feb. 15 Holders of rec. Jan. 27
Quebec Power (quar.)
400 Jan. 19 Holders of rec. Jan. 16
Shasta Water, new (initial) (quar.)
134 Feb. 1 Holders of reo. Jan. 20
Sierra Pacific Elec. Co.,6% st.(quar.)_
Suburban Elec. See. Co., lst pf. (guar.). $114 Feb. 1 Holders of rec. Jan. 16
200 Feb. 1 Holders of rec. Jan. 20
Telephone Investors Corp.(monthly)._ _
200 Mar. 1 Holders of rec. Feb. 20
Monthly
200. Apr. 1 Holders of rec. Mar. 20
Monthly

Name of Company.

451

Financial Chronicle

Volume 136
When
Per
Cent. Payable.

Public Utilities (Concluded).
1% Apr.
Tenn. Elect. Pow.Co.5% pref.(qu.)
6% preferred (guar.)
13. Apr.
14 Apr.
7% preferred (guar.)
$1.80 Apr.
7.2% preferred (guar.)
50c. Feb.
6% preferred (monthly)
50c. Mar.
6% preferred (monthly)
50o. Apr.
6% preferred (monthly)
60c. Feb.
7.2% preferred (monthly)
60c. Mar.
7.2% preferred (monthly)
60g. Apr.
7.2% preferred (monthly)
lid Feb.
Texas Pow.& Light Co.,7% pt.(qu.)
5114 Feb.
$6 preferred (guar.)
Un. Lt. & Rys.Co.(Del.) 7% IE.(mo.).5 8 1-30 Feb.
53c. Feb.
6.36% Preferred (monthly)
500. Feb.
6% preferred (monthly)

Books Closed.
Days hiciturlos.

1
1
1
1
1
1
1
1
1
1
1
1
1
1
1

Holders of rec. Mar. 15
Holders of rec. Mar. 15
Holders of rec. Mar. 15
Holders of rec. Mar. 15
Holders of rec. Jan. 16
Holders of rec. Feb. 15
Holders of rec. Mar. 15
Holders of rec. Jan. 16
Holders of rec. Feb. 15
Holders of rec. Mar. 15
Holders of rec. Jan. 14
Holders of rec. Jan. 14
Holders of rec. Jan. 14
Holders of rec. Jan. 14
Holders of rec. Jan. 14

Fire Insurance Companies.
5234 Feb. 2
City of N. Y.In.suranoe Co
15e. Mar.10
North River Insurance Co.(guar.)
St.Paul Fire & Marine Ins. Co.(guar.)- $134 Jan. 17
300. Feb. 1
United States Fire Ins. Co.(guar.)
300. May 1
(Quarterly)

Holders of rec. Jan. 14
Holders of rec. Mar. 1
Holders of rec. Jan. 12
Holders of rec. Jan. 20
Holders of rec. Apr. 20

Banks and Trust Companies.
$20
Kings County Trust Co.(guar.)
Midtown Bank of N.Y.(liquidating)... $1

Feb. 1 Holders of rec. Jan. 25
Jan. 2

Name of ComParIV.

When
Per
Cent. Payable.

Miscellaneous (Concluded).
Standard Oil Trust Shares series A mg-- 13.472e Jan. 16
e23.4 Feb. 25
Texas Gulf Prod
90c. Feb. 15
Thatcher Mfg. Co., cony. pref.(qua?.)..
Feb. 5
$2
Twin Bell Oil Syndicate (monthly)
50c. Mar. 1
United Biscuit Co.of Am.,com.(quar.)_
7c. Feb. 1
U. S. Banking Corp.(monthly)
U.S.Pipe & Foundry Co., corn.(quar.)_ 1234c Apr. 20
12340. July 20
Common (guar.)
1214c. Oct. 20
Common (guar.)
12 Mc. Jan2034
Common (guar.)
300. Apr. 20
let preferred (guar.)
30c. July 20
1st preferred (quar.)
30c. Oct. 20
1st preferred (qua?.)
30c. Jan2034
1st preferred (guar.)
75c. Mar. 1
Warren(N.) Corp.,$3 pref.(guar.)
W.Va.Pulp & Paper Co.. Pref.(quar.)-- $13.4 Feb. 15
$134 Feb. 1
Weston (Geo.), Ltd., pref. (qua?.)
$134 Feb. 1
Winstead Hosiery Co.(guar.)
$1 34 May 1
(Quarterly)
$134 Aug. 1
(Quarterly)
$134 Nov. 1
(Quarterly)
Jan. 15
Wolverine Brass Works, pref. (s.-a.)- --

Books Closea.
Days Itsdusiee.
Holders of rec. Dec. 31
Holders of rec. Feb. 6
Holders of rec. Jan. 31
Holders of rec. Jan. 30
Holders of rec. Feb. 16
Holders of rec. Jan. 17
Holders of rec. Mar. 31
Holders of rec. June 30
Holders of rec. Sept.30
Holders of rec. Dec. 30
Holders of rec. Mar. 31
Holders of rec. June 30
Holders of rec. Sept.30
Holders of rec. Dec. 30
Holders of rec. Feb. 15
Holders of rec. Feb. 1
Holders of rec. Jan. 20
Holders of rec. Jan..15
Holders of rec. Apr. 15
Holders of rm. July 15
Holders of rec. Oct. 15
Holders of rec. Jan. 15

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.

Miscellaneous.
Books Closed
When
Acmiyarmers Dairy, 7% Pt.(s.-a.)---- 336 Feb. 10 Holders of rec. Jan. 31
Per
13.( Apr. 1 Holders of rec. Mar. 15
Days Inclusive.
Agnew-Surpass Shoe Stores, pf.(quar.)_
Cent. Payable.
Name of Company.
$13( Mar. 1 Holders of rec. Feb. 15
Allegheny Steel Co.,S7 pref.(quar.)
51% Feb. 1 Holders of rec. Jan. 25
Allied Kid Co.,$614 Preferred (quar.)
Railroads (Steam).
$1
Jan. 21 Holders of rec. Jan. 17
American Book Co. (guar.)
Alabama Great Southern. prof (5.-a.) -- $134 Feb. 15 Holders of res. Jan. 6
50c. Apr. 1 Holders of rec. Mar. 11
American Chicle Co.(guar.)
Atchison Topeka & Santa Fe. Prof• (21.-a.) 5234 Feb. 1 Holders of rec. Dee. 30a
Mar.
11
rec.
of
250
Apr.
1
Holders
Extra
$134 Feb. 1 Holders of roe. Dec. 27
Canada Southern (semi-annual)
Feb. 1 Holders of reo. Jan. 26
American Envelope.7% Pref.(guar.).- 134 Mar. 1 Holders of rec. Feb. 25
Cincinnati Inter-Termlgtd. 1st pf.(s.-a.) $2
134 June 1 Holders of rec. May 25
Jan. 31 Holders of res. Jan. 21
7% preferred (guar.)
Cleveland Cincin Chic & St. Louis (s.-a.) $5
Aug.
25
134 Sept. 1 Holders of rec.
1% Jan. 31 Holders of rec. Jan. 21
7% preferred (guar.)
5% preferred (guar.)
13,1 Dec. 1 Holders of rec. Nov.25
July 1 Holders of ree. June 15
51
7% preferred (guar.)
Delaware RR. Co.(5.-a)
500 Feb. 15 Holders of rec. Jan. 31
$234 Feb. 15 Holders of rec. Feb. 18
Amer. Re-Insur. Co.(guar.)
Hudson & Manhattan. pref.
50c Apr. 1 Holders of rec. Mar. 16
American Stores Co.,corn.(guar.)
Kansas City St. Louis & ChicagoHolders of rue. Jan. 20
50e Apr. 3 Holders of rec. Mar. 6
1% Feb.
American Sugar Ref.Co.,corn.(guar.)
6% preferred guaranteed (guar.)
134 Apr. 3 Holders of rec. Mar. 6
Preferred (qua?.)
Louisiana de Missouri River, pref.(a:a.). $334 Feb. 1 Heiders of rec. Jan. 20
Holders of rec. Feb. 1
Feb.
15
Andre Citroen Cp.,Am.dep.ret.,B bearer 51.23 Jan. 21 Holders ot rec. Jan. 13
$4
(5
-a)
Louis
St.
Lethal/Ile, Henderson &
5235 Feb. 1 Holders of rec. Feb. 1
Bomberger & Co..634% cum. Pf (qu.).. 134 Mar. 1 Holders of rec. Feb. 14
Preferred (s-a)
Holders of rec. Jan. 16
13,5 Feb. 15 Holders of rec. Feb. 1
BeaconMfg. Co.,6% pref.(gum.)
$83.4 Feb.
Motioning Coal RR.. corn.(guar.)
Jan 3 Holders of rec. Jan. 21
25c Feb. 15 Holders of rec. Feb. 1
$25
Balmer's, Inc.,corn.(guar.)
Michigan Central (5.-a.)
Holders of rec. Jan. 14
750 Feb. 15 Holders of rec. Feb. 1
$IX Feb.
Preferred (guar.)
Mine Hill & Schuylkill Haven (s.-a.)
Blue Ridge Corp.,$3 opt.cony. pf.(qu.)- f1-32 Mar. 1 Holders of rec. Feb. 4
$1 Feb. 18 Holders of rec. Jan. 31
Norfolk & Western Ry., ad). prof
6234c.Feb. 1 Holders of rec. Jan. 16
Bohaok(H.C.) Co.,corn.(lliar.)
51% Jan. 31 Holders of rec. Jan. 40
Northern RR.of N.It.(guar.)
5334 Feb. 10 Holders of rec. Jan. 20
7% preferred (quar.)
134 Feb. 1 Holders etym. Jan. 16
Pecria & Bureau Valley (s.-a.)
750. Apr. 1 Holders of rec. Mar. 15
Bohack Realty Corp., 1st pref.(guar.)- - 5134 Feb. 1 „Holders of rec. Jan. 16
Pittsb. Bessemer & L.Erie, own.(qu.).
Broadway Newport Bridge (guar.)
$134 June 1 Holders of rec. May 15
234 Feb. 1 Holders of rec. Dec. 27
preferred (quar.)
6%
51 M Feb. 1 Holders of rec. Dec. 27
500. Feb. 15 ,Holders of rec. Jan. 31
Canadian.Converters(quar.)
Pittsburgh & Lake Erie (5.-a.)
250. Feb. 9 Holders of rec. Jan. 12
Capital Management Corp.(guar.)
15e. Feb. 1 Holders of rec. Jan. 20
Reading Co., Common (quar.)
Carpet Corp.(Qua?.)
3734o. Jan. 1 Holders of rec. Dec. 27
Shamokin Valley & Pottsville (s.-a.)--- $134 Feb. 1 Holders of rec. Jan. 15
d$234
Apr. 10 Holders of rec. Mar.20
10e. Feb. 15 Holders of rec. Feb. 6
Centrifugal Pipe Line Corp.cap.stk.(qu.)
Canal
Co.(guar.)
United N. J. RR.&
Capital stock (quar.)
100 May 15 Holders of rec. May 15
$134 Feb. 1 Holders of rec. Jan. 14
Virginian Ry.Co., pref.(guar.)
Capital stock (guar.)
10e Aug. 15 Holders °Live. Aug. 5
Capital stock (guar.)
100 Nov. 15 Holders of rec. Nov. 6
Public Utilities.
Holders of rec. Jan. 14
Chartered Investors,Inc., pref.(cm.).
$134 Mm. 1 Holders of rec. Feb. 1
Alabama Power Co.$5 pref. (guar.)-- $1% Feb.
Holders of rec. Jan. to
Chicago Yellow Cab (quar.)
250 Mar. 1 Holders of rec. Feb. 20
Amer. Cities Pow.& Lt. cl. A (qua?.)... r75e Feb.
Jan.
25
rec.
City Baking,7% pref.(guar.)
Holders of rec. Jan. 9
1M Feb. 1 Holders of
American Gm & Eke.. $6 prof. (quar.)_ $134 Feb.
Holders of rec. Jan. 13
Corm Mills,corn.(quar.)
25c Mar. 1 Holders of rec. Feb. 20
50e Feb.
American Lt.& Traction Co., coin.(qu.)
Cuneo Press, Inc.(quar.)
Holders of rec. Jan. 13
30c Feb. 1 Holders of rec. Jan. 20
134 Feb.
Preferred (guar.)
Holders of rec. Jan.
634% preferred (guar.)
1% Mar. 15 Holders of rec. Mar. 1
25e Feb.
Amer. water Work & Elec.. Com.(qu.).
Holders of rec. Jan. 14
Distillers Co., Ltd., Am, dep. rec. ord.
37340 Feb.
AssociatedTelep., pref. (quar.)
Holders of rec. Jan. 11
reg. (Interim)
Is. f3d Feb. 8 Holders of rec. Jan. 17
Atlantic City Electric Co.. 86 pref. Wu.) $134 Feb.
Dome Mines(quar.)
250 Apr. 20 Holders of rec. Mar. 31
Holders of rec. Jan. 10
50c Feb.
Bangor Hydro-Electric Co. (guar.)._
Extra
Holders of rec. Jan. 15
10e Apr. 20 Holders of rec. Mar.31
$1% Feb.
British Columbia Tel. Co.(guar.)
Dominion-Scottish Invest. Ltd.5% Pt
Holders of rec. Jan. 15
25c Feb. 1 Holders of rec. Jan. 20
134 Feb.
6% second preferred (guar.)
Dow Chemical Co.. corn. (guar.)
Holders of rec. Jan. 31
500 Feb. 15 Holders of_rec. Feb. 1
Broadway Newport Bridge,5% Pf.(qu.).. 13.4 Feb.
e. Preferred (guar.)
1% Feb. 15 Holders of rec. Feb. 1
Buff. Niagara & East Pr. Corp.
Federal Service Finance Corp.(guar.).50e. Jan. 31 Holders of rec. Dec. 31
114 Feb. 1 Holders of rec. Jan. 14
55 1st preferred (guar.)
7%;preferred (guar.)
13
‘
, Jan. 31 Holders of rec. Dec. 31
Calgary Power Co., Ltd.. 6% pf. (qu.). 114 Feb. 1 Holders of rec Jan. 14
Fulton Indust.Securities,$334 pt.(qu.) 8734e. Feb. 1 Holders of rec. Jan. 16
200 Jan. 25 Holders of rec. Dec. 31
Can. Nor. Pow. Corp., Ltd.corn.(qu.)...
Gilmore Gasoline Plant, No. 1 (montihY) 20c. Jan. 25 Holders of rec. Jan. 22
Central Arizona Light & PowerGlidden 0o., pref. (quar.)
$114 Feb. 1 Holders of rec. Jan. 14
$1% Apr. 1 Holders of rec. Mar. 17
$7 preferred (guar.)
Hale Bros. Stores, Inc., con'. (guar.)$134 Feb. I Holders of rec. Jan. 14
15c. Mar. 1 Holders °Um. Feb. 15
$6 preferred (guar.)
re Preferred (guar.)
200 Feb. 1 Holders of rec. Dec. 31
$1% Jan. 31 Holders_ofsec.,Jan. 24
Central Hudson Gas & Elec.(guar.)
Hartford Times, Inc., pref. (quer.).
75c. Feb. 15 Holders_of rec. Feb. 1
Central Power & Light,7% pref.(guar.) lid Feb. 1 Holders of rec. Jan. 14
Homestake Mining Co
Feb. 1 Holders of rec. Jan. 14
134
75e. Jan. 25 Holders_of.rec. Jan. 20
6% preferred (guar.)
Hormel(Geo. A.) &.Co., corn.(guar.).250 Feb. 1 Holders of rec. Jan. 14
25c. Feb. 15 Holders_of.rec...Jan. 28
Cincinnati Street Ry
he 6%, class A, preferred (quar.)
134 Feb. 15 Holders_of rec..Jan. 23
Cleveland Elec. Ilium. Co.. pref.(qu.). 5114 Mar. 1 Holders of rec. Feb. 15
Home (Jos.) Co.,6% pref.(quar.)
1250 Feb. 15 Holders of rec. Jan. 10
134 Feb. 1 HoldersyLrec. Jan. 24
Columbia Gas & Elec.. corn. (Guam.).
Howes Publishers, pref.(guar.)
134 Feb. 15 Holders of rec. Jan. 20
$1% Jan. 20 Holders of rec. Jan. 20
6% preferred series A ((Mar.)
International Harvester, pref. (guar-)- - $1% Mar. 1 Holders of rec. Feb. 6
13‘ Feb. 15 Holders of rec. Jan. 20
(quar.)
preferred
5%
Jackson & Curtis Sec. Corp.,$6 pref.11( Feb. 1 Holders of rec. Jan. 20
50c. Feb. 1 Holders of rec. Jan. 16
Cony.5% cum. pref. ((Man)
Klein (D. E.) Co., Inc., corn.(quar.)25c. Apr. 1 Holders of.rec. Mar. 20
Vol. Ry..Pow.dz Lt.Co.
Holders of rec. Jan. 14
m.Preferred (guar.)
144
Feb.
Feb.
1 Holders of„rec. Jan. 20
$134
034% B preferred (guar.)
Kroger Grocery & Baking (quar.)
Holders of rec. Jan. 14
$134 Feb.
250. Mar. 1 Holders of rec. Feb. 10
Commonwealth Edison Co.(guar.)
Landis Machine, pref. (guar.)
Holders of rec. Feb. 15
1M
Mar.
13.4 Mar. 15 Holders of rec. Mar. 5
pref.
C
Utilities.
Commonwealth
Preferred (qua?.)
Holders of rec. Feb. 3
Mar.1
$1
13( June 15 Holders of rec. June 5
Consol. Gas Co.of N. Y.. corn.(guar.)
LiggetM& Myers Tobacco, cora, and
Holders of rec. Doe. 80
$134 Feb.
preferred (guar.)
55
own. B (quar.)
Holders
of rec. Mar. 15
13‘
Apr.
Mar. 1 Hoklers of rec. Feb. 15
Consumers Power Co..$5 prof.(guar.)
Common and common B. extra
Holders of rec. Mar. 15
Mar. 1 Holders of rec. Feb. 15
134 Apr.
6% preferred (guar.)
Holders
of rec. Mar. 15
Lindsay (C. W.)& Co.. Ltd., pref.(qr.).
Apr.
Mar. 1 Holders of rec. Feb. 14
1.65
5.6 preferred (guar.)
Loew's (Boston). (guar.)
Holders of fee. Mar. 15
Feb. 1 Holders of rec. Jan. 31
1% Apr.
7% preferred (quiz.)
Leew's, Inc., $634 worn. pref. (guar.).
Holders of rec. Jan. 14
Feb. 15 Holders of rec. Jan. 31
50e Feb.
preferred (monthly)
6%
Lord & Taylor, 1st pref.(quar.)
Holders of rec. Feb. 15
Mar. 1 Holders of rec. Feb. 17
50C. Mar.
6% preferred (monthly)
Lunkenheither Co.,Pref.(guar.)
Apr. 1 Holders of rec. Mar.22
8% preferred (monthly)
Holders of rec. Mar. 15
50c Apr.
Preferred (qua?.)
July 1 Holders of rec. June 21
Holders of rec. Jan. 14
Feb.
550
6.6% preferred (monthly)
Oct. 2 Holders of rec. Sept.22
Preferred(gum.)
Holders of rec. Feb. 15
55c Mar.
6.6% preferred (monthly)
Feb. 1 Holders of rec. Jan. 16
Milville Shoe Corp.:6%11st pref.(guar.)
Holders of rec. Mar. 15
55e Apr.
6.6% preferred (monthly)
Jan.
Mohawk Homestead (5.-a.)
Holders of rec. Jan. 20
Dayton Power & Light, pref. (monthly) 50e Feb.
(guar.).
Feb. 15 Holders of rec. Feb. 1
Moody's Investors Service, pref.
Holders of rec. Jan. 100
Feb.
Edison Elec. Ilium. Co. of Boston (an.). 53
Holders of reo. Jan. 6
Nairn (M.) & „Greenwich, Ltd., Amer.
Electric Bond & Share Co..$6 pref.(qu.) $134 Feb.
xw734 Jan. 25 Holders of rec. Jan. 16
dep. rec. ord. rag
Holders of rec. Jan. 6
$134 Feb.
$5 preferred (guar.)
40. Feb. 1 Holders of rec. Jan. 14
Nation-Wide Secur. Co. (Colo.). Ben B.
Electric Power Associates, Inc.
75c. Feb. 1 Holders of rec. Jan. 25
NewAmsterdam Casualty (9.-a.)
Holders of reo. Jan. 16
10o Feb.
Class A & common (guar.)
25e. Feb. 1 Holders of rec. Jan. 25
Holders of ree. Jan. 14
New England Grain, pref.(qua?.)
68M c Feb.
Hartford Electric Light Co.
25c. Feb. 1 Holders of rec. Jan. 26
New Process Co., coin. (guar.)
Havana Elec. dr UtII. Co. 6% pref.-- 575e Feb. 1 Holders of rec. Jan. 14
15‘ Feb. 1 Holders of rec. Jan. 26
Holders of rec. Jan. 20
Preferred (guar.)
25c Feb.
Hydro-Elec. Security. 5% met. B (11.-a.)
134 Mar. 1 Holders of rec. Feb. 16
Newberry (J.:J.) Co.,7% pref.(qua?.)
Holders of rec. Jan. 14
Illinois Northern Utilities, 6% pref.(qu.) 134 Feb.
Nineteen Hundred Corp., class A (guar) 500. Feb. 15 Holders of rec. Feb. 1
Holders of rec. Jan. 14
$1% Feb.
$7 preferred (Guar.)
500. May 15 Holders of rec. May 1
Class A (guar.)
Holders of rec. Jan. 10
Illinois Pow.& Light Corp.,6% pf.(qu.) 51% Feb.
50e Aug. 15 Holders of rec. Aug. 1
Class A (guar.)
Holders of rec. Jan. 168
Internat. UHL Corp..$7 pref.(guar.).- 51% Feb.
500 Nov. 15 Holders of rec. Nov. 1
Class A (guar.)
Holders of rec. Jan. I8a
8730 Feb.
533.4 preferred (quar.)
25e. Feb. 15 Holders of rec. Feb. 1
Class B (quar.)
Lincoln Telep.& Teleg.,6% -A"pf.,(qu) 1% Feb. 1 Holders of rec. Jan. 31
450.
Holders of rec. Feb. 1
Noyes(Chas. F.) Co.,6% pref.(qua?.).
Holders of rec. Jan. 20
1% Feb.
Lone Star Gas,634% prof.(guar.)
Jan. 25 Holders of rec. Jan. 16
Penn Investing Co. (Phila.). prof.(qu.). $1
Los Angeles Gas & Elec. Corp.
$114 Jan. 15
Plymouth Rubber Co.. pref.(guar-)-134 Feb. 1 Holders of rec. Jan. 31
6% preferred (guar.)
Procter & Gamble Co., common (qua?.). 3734c. Feb. 15 Holders of rec. Jan. 25a Louisiana P.& L.,$6 pref.(guar.)
Holders of rec. Jan. 14
3134 Feb.
May 1 Holders of see. Dec. 31
Puritan Ice Co., pref.(5.-a.)
$4
Holders of rec. Jan. 14
Malone Light & Power,$6 pref.(guar.). 5134 Feb.
Rhode Island Hospital Co. (Providence,
Holders of rec. Jan. 15
Michigan Gas dr El. Co.. 7% pf.(qu.).. 1% Feb.
Feb. 10 Holders of ree. Jan. 31
$30
R. I.) (guar.)
Holders of rec. Jan. 15
$6 prior lien (guar.)
513.4 Feb.
30e. Feb. 1 Holders of rec. Jan. 20
Riches, Inc., common (guar.)
Holders of rec. Jan. 15
6% preferred (qua?.)
1% Feb.
Mt
% preferred (guar.)
134 Mar.31 Holders of rec. Mar. 15
Holders of rec. Jan. 15
5134 Feb.
$6 preferred
50e. Jan. 31 Holders of rec. Dec. 31
Samson Corp.. 6% preferred
Milwaukee EI.Ry.&Lt. Co.6% pt. (flu.) 134 Jan. 3 Holders of rec. Jan. 20
Seaboard Nat. Securities, pref.(quar.).. 37340. Feb. 1 Holders of rec. Jan. 20
Holders of ree. Feb. 26
760. Mar.
Milwaukee Gas Light Co.. 7% pt. (au.)
Second Standard Royalties, Ltd., pref. _
1
Feb. I Holders of rec. Jan. 21
Holders of reo. Jan. 18
Mobawk Hudson Pow. Co.. 1st of.(qu.) 1114i Feb.
Second Twin Bell 011 Syndicate (mthly.) 200. Feb. 5 Holders of rec. Jan. 30
Montreal Light, Heat & Power Consol.
Feb. 1 Holders of rec. Jan. 20
Securities Corp. General,$7 pref.(qu.)rue Jen. 8 Holders of reo. Dee. 31
Common (guar.)
561:preferred (quar.)
$134 Feb. 1 Holders of rec. Jan. 20
Holders of rec. Jan. 14
National Power Ik Light Co.86 pf.(qu.). $134 Feb.
Selby4,Shoe Co., common (quar.)
350. Feb. 1 Holders of rec. Jan. 20
Holders of roe. Dec. 300
Nevada-California Elcc. Corp.. pref.(en) $13.4 Feb.
Preferred (guar.)
$1% Feb. 1 Holders of rec. Jan. 20
Holders of rec. Jan. 14
New York Utilities, pref.(guar.)
$134 Feb.
Sheatfer(A. W.)Pen Co., pref.(quar.)
Jan. 20 Holders of rec. Dec. 31
$2
Holders of rec. Jan. 14
Northern N.Y.Utilities, Ino., of.(qu,). $134 Feb.
91scol,Oold Mines (quar.)
.03c. Mar.31
Northern Ontario POW& CO.. Ltd.
Smith Avis. Chemical Co.,6% pf.(qu.) 134 Feb. 1 Holders of rec. Jan. 21
500 Jan. 25 Holders of rec. Deo. 31
Common (guar.)
Standard Corp., Inc. (guar.)
4o. Feb. 1 Holders of rec. Jan. 20
114 Jan. 25 Holders of rec. Dee. 31
6% oum. preferred (guar.)




452

Financial Chronicle
Per
When
Cent. Payable.

Books Closed.
Days Inclusive.

Jan. 21 1933

Per
When
Books Closed.
Name of Company.
Cent. Payable.
Days Inclustre.
Miscellaneous (Continued).
Dictaphone Corp., pref.(guar.)
$2
Mar. 1 'folders of rec. Feb. 17
Dividend Shares, Inc.(guar.)
2c Feb. 1 Holders of rec. Jan. 14
Dominion Bridge Co., Ltd. (quar.)
(500. Feb. 15 Holders of rec. Jan. 31
Quarterly
t 50c May 15 Holders of rec. Apr. 29
Duplan Silk Corp., corn. (s-a)
50c Feb. 15 Holders of rec. Feb. 1
duPont de Nem.(E.1.) & Co.
Debenture (guar.)
$114 Jan, 2 Holders of rec. Jan. 10
Eastern Theatres Ltd., corn.(quar.)
50c Mar.
Holders of rec. Jan. 31
Preferred (guar.)
334 Jan. 3 Holders of rec. Dee. 31
Elect. Household Utilities Corp
$1
Jan. 2 Holders of rec. Dec. 30
Eppens, Smith & Co.(s.-a.)
52
Feb.
Holders of rec. Jan. 25
Semi-annual
$2
Aug.
Holders of rec. July 25
Eureka Pipe line Co.(guar.)
$I
Feb.
Holders
of rec. Jan. 16
Ewa Plantation Co
1,0e. Feb. 1
Holders of rec. Feb. 4
Exchange Buffet Corp.(guar.)
63$ c Jan. 3 Holders of ree. Jan. 20
Faber. Cook Gregg. pref.(guar.)
5134 Feb.
Holders of rec. Jan. 20
Farmers & Traders Life Ins.(Syracuse)(Quarterly)
$234 Apr.
Holders
of rec. Mar. 11
Faultless Rubber Co., corn.(guar.)
50c. Apr.
Holders of rec. Mar. 15
Federal Knitting Mills Co., corn. (guar.) 6234c. Feb.
Holders of rec. Jan. 14
Extra
$3 Feb.
Holders of rec. Jan. 14
Fibreboard Products, pref. (guar.)
$134 Feb.
Ifoldres of rec. Jan. 16
Fidelity Fund, Inc., el. A, corn. (quar.)_
50c. Feb.
Holders of rec. Jan. 16
Class A, corn., extra
15c. Feb.
Holders of rec. Jan. 16
Firestone Tire & Rubber,6% pref. (qu.) 134 Mar.
Holders cf rec. Feb.
Food Machinery Corp., pref.(monthly).
50e. Feb. 15 Holders of rec. Feb. 15
Preferred (monthly)
50c. Mar, 15 Holders of rec. Mar. 10
Geist(C.If.)6% prof.(gua)'.)
134 Mar. 1 Holders of rect. Feb. 10
11
General Cigar Co., COM. (guar.)
$1
Feb. 1 Holders of rec. Jan. 16
Preferred (guar.)
SI% Mar. 1 Holders of rec. Feb. 20
General Elec. Co.,corn.(guar.)
10c. Jan. 25 Holders of rec. Dec. 160
Common
m1-6sh Feb. 20 Molders of ree.
Dec. 160
Special stock (guar.)
15c. Jan. 25 Holders of roe. Dee. 180
General Foods Corp., corn. (guar.)
50c. Feb.
Holders of rec. Jan. 160
General Mills. Inc., tom.(guar.)
750. Feb.
Holders of rec. Jan. 14
General Motors Corp.. $5 prof. (quar.)
513-4 Feb.
Holders of rec. Jan. 9
General Stockyards Corp., corn. (guar.)
7.5c. Feb.
Holders of rec. Jan. 180
$6 cony. preferred (guar.)
51% Feb.
Holders of rec. Jan. 160
Gillette Safety Razor Co.. $5 pref.(qu.) _ $13.4 Feb.
Holders of rec. Jan. 3
Gold Dust Corp., corn. (guar.)
30o. Feb.
Holders of rec. Jan. 10
Gotham Silk Hosiery Co., Inc.7% preferred (guar.)
1% Feb.
Holders of rec. Jan. 12
Gottfried Baking Co., Inc.. cl. A (guar.)
75c. Apr.
'folders of rec. Mar. 20
Class A (guar.)
75c. July
Holders 'of rec. June 20
Clam A (guar.)
750. Oct.
Holders of rec. Sept. 20
Govt. Gold Mining Areas Cons., Ltd.Amer. dep. rec. reg. shares
Pw45
Holders of rec.
Hercules l'owder Co., preferred (quar.). 5134 Feb. 15 Holders of rec. Dec. 30
Feb. 3
Hershey Chocolate Corp.. corn.(quar.)-- 5134 Feb. 15 Holders of rec.
Jan. 25
Preferred (guar.)
51 Feb. 15 Holders of rec. Jan. 25
Extra
$1
Feb.
15
Holders
of rec. Jan. 25
Banks and Trust Cos.
Hibbard, Spencer, Bartlett & CO.
Corn Exchange Bank Trust Cu.(guar.)- $1 Feb. 1 Holders of rec. Jan. 24
Monthly
100. Jan, 27 Holders of rec. Jan.
20
Monthly
Feb.
10c
24
Holders of rec. Feb.
Fire Insurance Companies.
Monthly
10c Mar. 31 'folders of rem Mar. 17
Boston Ins. Co. d(guar.)
$4
24
Apr. 1 Holders of rec. Mar. 20
Hobart Mtg. Co.. corn.(guar.)
Mar.
25o
1
Holders
Fireman's Ins. Co.(Newark)(guar.)._ _
of
rec. Feb. 18
15c. Jan. 25 Holders of rec. Jan. 14
Holland Land (liquidating)
500
Holders of rec. Dec. 14
Franklin Fire Insurance (guar.)
25c. Feb. 1 Holders of rec. Jan. 20
Hollinger Consol. Gold Mines, Ltd.
Home Insurance Co.(guar.)
250. Feb. 1 Holders of rec. Jan. 14
(Monthly)
150
28
Jan.
Holders of rec. Jan. 13
Standard Fire Ins. Co.(N. J.) (guar.)
37%c. Jan. 23 Holders of rec. Jan. 16
Homestake Alining Co.(monthly)
75c Jan. 25 Holders of ree.
West American Ins. Co.
$1
20
Horn dr Harden Co.(N. Y.), Corn. (qu.)
50c Feb. 1 'folders of rem Jan.
Jan. 12
Humberts
Shoe
Feb.
Ltd.
50c.
1
(guar.)
Miscellaneous.
'folders of rec. Jan. 16
Industrial Cotton Mills. pref. (quar.)
1)4 Feb. 1 Holders of
Abraham & Straus. Inc., pref. (guar.).- $1% Feb. 1 Holders of rec. Jan.
14
Ind. Cot. Mills. Inc.(S.C.) 7% pf.(qu.). 1% Feb. 1 Holders of rec. Jan. 20
Adams-Mills Corp.. corn. (guar.)
rec. Jan. 20
50c. Feb. 1 Holders of rec. Jan. 17
Insuranshares Corp. of Del., corn. (ann.)
150. Jan. 25 Holders of
Preferred (guar.)
$1% Feb. 1 Holders of rec. Jan. 17
International Cigar Mach. Co.(quar.).- 373$o. Feb. 1 Holders of rec. Jan. 16
Affiliated Products (monthly)
1 3 1-3a. Feb. 1 Holders of rec. Jan. 18
rec. Jan. 21
Internationa
Nickel
Canada
l
Co.
of
Agnew Surp. Shoe St. Ltd.,7% pf.(qu.). 134 Apr. 1 Holders of rec. Mar. 15
7% preferred (guar.)
1134 Feb. 1 Holders of rec. Jan. 3
Alaska Juneau Gold Mining (q ultr.)__ _ _
15c. Feb. 1 Holders of rec. Jan. 10
Internat, Printing Ink Corp., pref. (qu.) 135 Feb. 1 Holders of rem
Allied Chemical & Dye Corp., corn.(qu.) 51% Feb. 1 Holders of rec. Jan. 11
International Shoe, preferred (monthly)_
500. Feb. 1 Holders of rec. Jan. 14
American Can Co., corn. (guar.)
$1
Feb. 15 Holders of rec. Jan. 250
15
Preferred (monthly)
50c. Mar, 1 Holders of rec. Jan.
Amerada Corp.. cap. stk. (guar.)
50c. Jan. 31 Holders of rec. Jan. 140
Feb.
Preferred
500.
(monthly)
Apr. 1 Holders of rec. Mar. 15
American Factors Ltd. (monthly)
10c. Feb. 10 Holders of rec. Jan. 31
15
Preferred
500. May 1 Holders of rec. Apr.
(monthly)
American Home Products (monthly)_ _ _
35e. Feb. 1 Holders of rec. Jan. 14a
15
Preferred (monthly)
50e. June 1 Holders of
American Ice Co., pref. (guar.)
51% Jan. 25 Holders of rec. Jan. 6
Interstate Dept, Stores, Inc., pref. (qu.) 1% Feb. 1 Holders of rec. May 15
American Investors,$3 pref.(quar.)-rec.
Jan.
75c Feb. 1 Holders of rec. Jan. 31
16
Jantten Knitting Mills. pref. (quar.).__ $134 Mar. 1 Holders or
Amer. Machine & Foundry Co.com.(gu)
rec.
20e Feb. I Holders of rec. Jan. 21
Kekalus Sugar Co.(monthly)
100. Feb. 1 Holders of rec. Feb. 25
American Ship Building (guar.)
50c Feb. 1 Holders of rec. Jan. 14
Jan.
25
Knudson
Creamery
A&B
Co., cl.
(on.). 37350. Feb. 20 'folders of rec. Jan.
Amoskeag Co., common (s-a)
$1 July 3 Holders of ree. June 24
31
Kress (S. II.) & Co.common (guar.)._ _ _
250. Feb. 1 Holders of rec.
Preferred (s-a)
52% July 3 Holders of rec. June 24
Special preferred (guar.)
15e. Feb. 1 Holders of rec. Jan. 20
Andre Citroen Corp.Jan.
20
Kroger Grocery & Baking 7% pref.(qu.)
1% Feb. 1 Holders of rec.
A mer. dep. rec."B" bearer shares_ __Ir 31.771 Jan. 21 Holders of rec. Jan. 13
Jan. 20
Lake View & Star Co.(London),Interim_x w1234
Anglo-Persian 011 Co., Ltd.Lane Bryant, Inc.,7% pref.(guar.).I% Feb. I Holders of rec. Jan. 16
Amer. dep. reo. lot p1.stk. reg.(s.-a.)_
Feb. 7 Holders of reo. Deo. 16
Lawbeck Corp.,$6 pref. ((war.)
$1 34 Feb. I Holders of rec. Jan. 21
Amer.dep.rec. 2d pref.stk. reg.(8.-a.) zw4% Feb. 7 Holders of rec. Dec. 16
Lazarus(F.& R.) dr Co.634% pref
134 Feb. 1 Holders of rem
Archer-Daniels-Midland. Pref.(guar.)-- 1% Feb. I Holders of rec. Jan. 21
Link-Belt Co., common (guar.)
20c Mar. I Ifolders of rec. Jan. 20
Asbestos Mfg., pref. (guar.)
35c. Feb. 1 Holders of rec. Jan. 20
Leew's Boston Theatres, Com.(guar.)._
150. Feb. 1 Holders of tee. Feb. 15
Atlas Powder Co., pref.(guar.)
$1% Feb. 1 Holders of rec. Jan. 20
Loose-Wiles
(guar.)._
Biscuit
corn.
Co.,
Feb. 1 Holders of rec. Jan. 21
500.
Austin. Nichols& Co.,Inc.,prior''A"(qu.)
25e. Feb. 1 Holders of reo. Jan. 13
Jan. 18
Lucky Tiger Comb.Gold Alln'g Co.i(gu.)
30. Apr. 20 Holders of tee.
Beatty Bros., Ltd.. 6% lot pref
134 Feb. 1 Holders of rec. Jan. 15
Apr. 10
(guar.
Macy
(R.
Feb.
corn.
H.)
Co..
&
50e.
15 Holders of roe. Jan.
Belding-CorticelliLtd., corn.(quar.)_
51% Feb. 1 Holders of rec. Jan. 14
20
Magnin
(I.) & Co., 6% pref. (guar.).__
134 Feb. 15 Holders of rec.
13eneficialludu9trialLoanCorp.,corn.(gr) 37340. Jan. 30 Holders of rec.
Jan. 14
6% preferred (guar.)
May 15 Holders of rec. Feb. 5
134
Preferred. ser. A, (guar.)
87%c. Jan. 30 Holders of rec. Jan. 14
May
5
6%
preferred
Aug.
(quar.)
15 Holders of roe.
134
131rtman Electric, $7 pref. (guar.)
$1% Feb. 1 Holders of rec. Jan. 16
5
6% preferred (guar.)
134 Nov. 15 Holders of rec. Aug.
Bloomingdale Bros., Inc., pref.(quar.)_ _ 51% Feb. 1 Holders of rec. Jan. 20
Nov.r 5
McCall
Corp.
50o.
(guar.)
Feb.
Holders of rem Jan. 16
Bon Arni Co., class A (guar.)
$1 Jan. 31 Holders of rec. Jan. 16
McIntyre Porcupine Mines (guar.)
u25c. Mar.
Holders of rec. Feb. 1
Boss Manufacturing Co., corn. (quar.)..
250. Feb. 15 Holders of rec. Jan. 31
Extra
u123$c Mar.
7% preferred (guar.)
Holders of rec. Feb. 1
1% Feb. 15 Holders of rec. Jan. 31
Melville
Shoe,
common
Feb.
30e.
(guar.)
Holders of rem Jan. 16
Brakpan Mines, Ltd., ord. bearer
4 oh. Feb. 17 Holders of rec. Dec. 31
First preferred (guar.)
$IM Feb.
Holders of rec. Jan. 16
British-American Tobacco Co., Ltd.
Second preferred (guar.)
7340. Feb.
Amer. dep. rcts. ord. bearer (final)._ w 8 d Jan. 23 Holders of reo. Dec. 23
Holders of rem Jan. 16
Mach
.Refrigerati
ng
Co.(N.Y.).Pf.iall.) 134 Feb.
Holders of roe. Jan. 23
Interim
w10 d Jan. 23 Holders of rec. Dec. 23
Metal & Thermit Corp.. corn. (guar.)._ $1 Feb.
Holders of rec. Jan. 20
Amer. dep. rcts. ord. reg.(final)
to 84 Jan. 23 Holders of rec. Dec. 23
Alodine Mtg. Co., Common (guar.)
150. Feb.
Holders of reo. Jan. 20
Interim
w10 d Jan. 23 Holders of rec. Dec. 23
Mtge. Corp. of N. S. (guar.)
$134 Feb.
Holders of rec. Jan. 24
Bway. Dept.Store.7% cum. 1st pt.(qu)
Feb. I Holders of rec. Jan. 18
Nash Motors Co. (guar.)
250. Feb.
Holders
Brown Shoe Co.. pref. (guar.)
1% Feb. 1 Holders of rec. Jan. 20
National Industrial Loan Corp. (guar.). 16)40. Feb. 15 Holders of rec. Jan. 20
Byers (A. M.) Co.. pref.(guar.)
of
$1% Feb. I Holders of rec. Jan. 14
National Lead. pref. B (guar.)
5134 Feb. 1 Holders of rec. Jan. 31
Ca/amba Sugar Estates (guar.)
reo. Jan. 20
400. Apr. 1 Holders of rec. Mar. 15
National Tea Co., pref. (guar.)
1340. Feb. 1 Holders of
Preferred (guar.)
350. Apr. 1 Holders of rec. Mar. 15
New
England Equity Corp., corn.(qu.). 50e. Feb. 1 Holders of rec. Jan. 16
Campe Corp., 6)4% pref. (guar.)
rec.
1% Feb. I Holders of rec. Jan. 15
New Jersey Zino Co
500. Feb. 10 Holders of roe. Jan. 16
Canadian Bronze Co., Ltd.. corn.(guar.) 31%c. Feb. 1 Holders of rec. Jan.
Jan. 20
20
New York & Honduras Rosario Mining
Preferred (guar.)
51% Feb. 1 Holders of rec. Jan. 20
Co. (guar.)
23-4 Jan. 28 Holders of rem Jan.
Canadian Dredge & Dock Co., Ltd.,
17
New
York
Merchandise
corn.
Co.,
(qu.)
Feb.
250.
1
Holders of rec. Jan. 20
Common (guar.)
1st Feb. 1 Holders of rec. Jan. 16
Preferred (guar.)
134 Feb. I Holders
Preferred (guar.)
51% Feb. I Holders of rec. Jan. 16
Newberry (,). J.), Realty, pref. A (qu.)_ _ 51.62 Feb. 1 Holders of rec. Jan. 20
Cartier, Inc., 7% pre?
of reo.
87%c. Jan. 31 Holders of rec. Jan. 14
6% preferred (guar.)
51% Feb. I Holders of rec. Jan. 16
Central Illinois Securities Corp. pref.(q II)
150. Feb. 1 Holders of rec. Jan. 20
Noyes(C. F.) Co., Ine.,6% pref. (qu.)_
450. Feb. 1 Hoidens of rec. Jan. 16
Central Manhattan Properties
$1.08
Jan. 28
Outlet
common
Co.,
51
(guar.)
Feb.
1
Holders of reo. Jan. 20
Century Ribbon Mills. pref. (guar.)- _ $1% Mar.
Holders of rec. Feb. 20
let preferred (gllar.)
1% Feb. I Holders of rec.
Century Shares Trust (s.
350. Feb.
Holders of rec. Jan. 5
Jan. 20
2nd preferred (guar.)
Feb.
1
134
Holders
-Burrell,
pref.
(guar.)
Cherry
51% Feb.
Holders of rec. Jan. 15
Owens-Illinois Glass Co., corn.(guar.)._ 50c. Feb. 15 'folders of rec. Jan. 20
of rec. Jan. 30
City Ice & Fuel, corn.(guar.)
500. Mar.3 Holders of rec. Mar. 15
Preferred (guar.)
$13.4 Apr. 1 Holders
% preferred (guar.)
1% Mar.
Holders of rec. Feb. 15
Pacific
Finance Corp., series A (quar.). 200 Feb. I Holders of rec. Mar. 16
Cluett-Peabody & Co., Inc., corn.(gu.)of rem Jan. 1
250. Feb.
Holders of rec. Jan. 21
Series
16%0 Feb. 1 Holders of
C (guar.)
Colgate-Palmolive-Peet Co., corn.(guar)
rec. Jan.
25c. Jan. 2 Holders of rec. Jan. 14
Series D (quar.)
1734o Feb. 1 Holders of rec. Jan. 1
Columbian Carbon Co.(guar.)._n
50c. Mar.
Holders of rec. Feb. 14
1
Pacific Finance Corp. of Calif. (Del.)Consol. Chem. Indus., Inc., pf.cl.A(gu.) 37%c. Feb.
Holders of rec. Jan. 15
Preferred A (guar.)
20e. Feb. 1 Holders of rec.
Consolidated Cigar Corp.. prior p1.(qu.) 1% Feb.
Jan. 14
Holders of rec. Jan. 20a
Preferred
C
163.jc.
Feb.
(guar.)
1
Holders
of
Preferred (guar.)
1% Mar.
Holders of rec. Feb. 15a
Preferred D (Oust.)
17340. Feb. 1 Holders of rec. Jan. 14
Consolidated Laundries Corp.. pref.(gu.) $1% Feb.
rec.
Holders of rec. Jan. 16
Penman.% Ltd., common (guar.)
1750. Feb. 15 Holders of ree. Jan. 14
Consolidated Mining & Smelting
el0
(Molders of reo. Jan. 12
Feb. 6
(quar.)
Preferred
tl%
Feb.
Holders of rec. Jan. 21
Consolidated Oil Corp., 8% Pref.(guar.) 2
Feb. 15 'folders of rec. Feb. 1
Philadelphia Bourse, pref.(annual)
5134 Feb.
Ilolders of rec. Deo. 31
Consolidated Royalty 011 Co
50. Jan. 25 Holders of rec. Jan. 14
Philadelphia Insulated Wire (s-a)
50e.
Feb.
Holders
Continental Can Co.,Inc., corn.
of rem Jan. 16
50c. Feb. 15 Holders of rec. Feb. la Phillips-Jones Corp., 7% pref. (gust.)....
813$ Feb.
Holders of rec. Jan. 20
(W. B.) 7% pref. (guar.) (guar.)Con
1% Feb. 1 Holders of rec. Jan. 17
Pioneer M ill Co., Ltd.(monthly)
50. Feb.
Holders of rec. Jan. 21
3% Feb. 1
Crowell Publishers. 7% pref. (S-8)
Process Corp., corn.(guar.)
50.
Feb.
dIfolders of rem Jan.
$2
Mar. 31 Holders of rec. Aiar. 21
Crum de Forster, pref.(guar.)
Pullman, Inc. (guar.)
75e. Feb. 15 Holders of rem Jan. 21
Dennison Mfg. Co., debenture stock_ _ _ _ 84
Feb. I Holders of rec. Jan. 20
24
Quaker Oats Co.. pref. (guar.)
$134 Feb. 28 Holder's of reo. Feb. 1
Deposited Insurance Shs. A
0725c Feb. 1 Holders of rec. Deo. 31
Raymond Concrete Pile $3 cony. pf.(gu.)
750. Feb. 1 Holders of rec. Jan.
Diamond Match Co., Common (quar.)_ _
25c. Mar. 1 Holders of rec. Feb. 15
20
Reed (C. A.) Co. class A (guar.)
500. Feb. 1 Holders
75e. Mar. 1 Holders of rec. Feb. 15
Preferred (s.-a.)
Republic Service Corp.,$6 pref. (quar.)_ $134 Feb. 1 Holders of reo. Jan. 21
of rec. Jan. 16
Name of Company.

Public Utilities (Concluded)..
Northern States Power Co. (Del.)Class A common (guar.)
1)4 Feb. 1 Holders of rec. Dec. 31
Ohio Public Serv. Co., 7% pt. (mthly.)- 58 1-3c Feb. 1 Holders of rec. Jan. 14
6% preferred (monthly)
50e Feb. 1 Holders of rec. Jan. 14
5% preferred (monthly)
41 2-3c Feb. 1 Holders of rec. Jan. 14
Orange & Rockland Elec. Co.(quar.)- $2 Feb. 1 Holders of rec. Jan. 25
Pacific Lighting Corp., corn. (guar.)- 75c. Feb. 15 Holders of rec. Jan. 20
Peninsular Telephone, 7% pref.(quar.)_
1% Feb. 15 Holders of rec. feb.
Pennsylvania Power Co.
6.60% preferred (monthly)
55e. Feb. 1 Holders of rec. Jan. 20
6.6% preferred (monthly)
55c. Mar. I Holders of rec. Feb. 20
$6 preferred (guar.)
51% Mar. 1 Holders of rec. Feb. 20
Philadelphia Co. common (guar.)
35c. Jan. 25 Holders of rec. Dee. 31
Philadelphia Elec. Co., pref. (quar.).. 51% Feb. 1 Holders of rec. Jan.
Philadel Oda Suburban Wat. Co.. of.(q1)) 1)4 Mar. 1 Holders of rec. Feb. 10
I la
Potomac Edison 7% pref. (guar.)
$1.% Feb. 1 Holders of rec. Jan. 20
6% preferred (guar.)
1% Feb. 1 Holders of rec. Jan. 20
Public Service Co. of Colorado7% preferred (monthly)
58 1-3c Feb. 1 Holders of rec. Jan. 14
6% preferred (monthly)
500. Feb. 1 Holders of rec. Jan. 14
5% preferred (monthly)
41 2-3c Feb. 1 Holders of rec. Jan. 14
Public Service Corp. of New Jersey6% preferred (monthly)
50c. Jan. 31 Holders of rec. Jan. 3
Pubbc Service Co. of No. III., corn.(quo
75e. Feb. 1 Holders of rec. Jan. 14
7% preferred (guar.)
Feb. 1 Holders of rec. Jan. 14
6% preferred (guar.)
134 Feb. 1 Holders of rec. Jan. 14
Rhode Island Public Serv. Co., pf.(qu.)_
50c. Feb. 1 Holders of rec. Jan. 16
Class A (guar.)
$1
Feb. I Holders of rec. Jan. 16
Rockland Light & Power (quar.)
200. Feb. 1 Holders of rec. Jan. 16
Shawinigan Water & Pos er Co.com.(qu) 8130. Feb. 15 Holders of rec. Jan. 21
South Pitts. Water Co.5% pf. (13.-a.)-- 1% Feb. 20 Holders of rec. Feb. 10
Sou. Calif. Edison Co., Ltd., corn. (qu.)_
2
Feb. 15 Holders of rec. Jan. 20
Southern Calif. Gas Corp.56% pf.(qu.)- $1% Feb. 28 Holders of rec. Jan. 31
Southern Canada Power Co., Ltd.Common (guar.)
£250. Feb. 15 Holders of rec. Jan. 31
Standard Gas dr Elec. Co. corn.(guar.)
300. Jan. 25 Holders of rem Dec. 31
$6 cum. preference (guar.)
5134 Jan. 25 Holders of reo. Dec. 31
$7 cum. preference (guar.)
51% Jan. 25 Hoiders of rec. Dee. 31
Standard Power & Light corn.(guar.)
30c. Mar. 1 Holders of rec. Feb. ha
Preferred (guar.)
51% Feb. 1 Holders of rec. Jan. 140
Toledo Edison Co.7% pref.(monthly) 58 1-3c Feb. 1 Holders of rec. Jan. 14
6% preferred (monthly)
50c. Feb. 1 Holders of rec. Jan. 14
41 2-3c Feb. 1 Holders of rec. Jan. 14
5% preferred (monthly)
United Ohio Utilities Co.6% pref (an.) 1% Feb. 1 Holders of rec. Jan. 12
West Penn Elect. Co.,,7% cum. pf. (qr.)
1% Feb. 1.5 Holders of rec. Jan. 20
6% cum. preferred (guar.)
1% Feb. 15 Holders of rec. Jan. 20
West Penn Power.7% Pref. Wiwi
1% Feb. 1 'folders of rec. Jan. 5
6% preferred (guar.)
1% Feb. 1 Holders of rec. Jan. 5
Wisconsin Telephone Co.. pref. (guar.). 5134 Jan. 31 Holders of rec. Jan. 20
York Railways, pref. (quar.)
62340 Feb. 1 Holders of rec. Jan. 20




453

Financial Chronicle

Volume 136

Books Closed,
Days Inclusive.

When
Per
Cent. Payable.

Name of Company.

The New York "Times" publi§hes regularly each week
returns of a number of banks and trust companies which are
not members of the New York Clearing House. The Public
National Bank & Trust Co. and Manufacturers Trust Co.,
having been admitted to membership in the New York
Clearing House Association on Dec. 11 1930, now report
weekly to the Association and the returns of these two banks
are therefore no longer shown below. The following are
the figures for the week ending Jan. 13:

Miscellaneous (Concluded).
500. Feb. 1 Holders of rec. Jan. 4
Rich Ice Cream (quar.)
Riverside Cement Co.. 1st pref.(qua:.). $134 Feb. 1 Holders of rec. Jan. 14
Russell Motor Car Co.,Ltd., pref.((NJ. 144 Feb. 1 Holders of roe. Dee. 31
St. Lawr. Fl. Mills Co., Ltd.,00m.(qu.)- 37140. Feb. 1 Holders of roe. Jan. 20
$141 Feb. 1 Holders of roe. Jan. 20
preferred (qua:.)
25c. Feb. 1 Holders of roe. Jan. 16
Salt Creek Prod. Assoe. (quar.)
Savannah Sugar Rein. common (guar.). $144 Feb. 1 Holders of rec. Jan. 16
144 Feb. 1 Holders of rec. Jan. 16
Preferred (qua:.)
154 Feb. 1 Holders of rec. Jan. 17
Scott Paper Co.,7% ser A,pref. (quar.)_
144 Feb. 1 Holders of roe. Jan. 17
6% series B, preferred (quar.)
Seeman Bros., Inc.. common (guar.)... 6244c Feb. 1 Holders of roe. Jan. 16
50o. Feb. 1 Holders of rec. Jan. 18
(qu.)._
Dohme,
A
pt.
$344
Inc.,
&
INSTITUTIONS NOT IN THE CLEARING HOUSE WITH THE CLOSING
Sharp
144 Apr. 1 Holders of roe. Mar. 18
Slattery (E. J.) Co., pref. (guar.)
OF BUSINESS FOR THE WEEK ENDED FRIDAY, JAN. 13 1933.
Solvay Amer Invest. Corp., pref.(guar.) $144 Feb. 15 Holders of rec. Jan. 16
3s. 9d. Feb. 17 Holders of rec. Dec. 31
Spring Mines. Ltd., ord. bearer
NATIONAL BANKS-AVERAGE FIGURES.
Squibb (E. R.) & Sons,$6 1st pref.(qu.) $144 Feb. 1 Holders of rec. Jan. 15
25o. Feb. 1 Holders oft eo. Jan. 15
Common (qua:.)
$18
Stafford, prof. (Initial liquidating)
Other Cash, Res. Dep., Dep. Other
Loans,
143440 Feb. 1 Holders of rec. Jan. 7
Steel Co. of Can.. ord. (quar.)
Gross
Disc. and Gold. Including V. Y. and Banks and
P13440 Feb. 1 Holders 9! roe. Jan. 7
Preferred (qua:.)
Bank Notes Elsewhere. Trust Cos Deposits.
investments.
18
500. Feb. 1 Holders of rec. Jan.
Sunshine Biscuits, common (qua:.)
Superior Port. Cement, Inc., A (mthly.) 27M e. Feb. 1 Holders of roe. Jan. 23
$
$
$
$
$
$
ManhattanFeb. 15 Holders of roe. Jan. 140 Grace
$1
Swift Internacional Corp.(s.-a.)
67,100 1,633.100 1,060,200 18,838,100
National_ 18,145,800 2,500
150. Feb. 1 Holders of rec. Jan. 17
Teok-Hughes Gold Mines,Ltd.(guar.).Telautograph Corp. cap. stook (qua:.).. 25o. Feb. 1 Holders of roe. Jan. 14
Brooklyn$134 Feb. 15 Holders of roe. Jan. 20
Tide Water 011 Co., pref
50,000 5,180.000
353,000
73,000
Peoples Nat'l__ 5,594,000 5,000
.104e Jan. 31
'Trusteed Amer.Bank She., orig.ser
31
Jan.
0820.
Series A
25e. Feb. 10 Holders of rec. Jan. 19
Union 011 Co. of Calif.(qua:.)
United Biscuit Co.of Amer., pref.(qu.)- $134 Feb. 1 Holders of rec. Jan. 17
TRUST COMPANIES-AVERAGE FIGURES.
120 Feb. 1 Holders of rec. Dec. 31
United States Shares Corp.,series F.Tog.
120 Feb. 1 Holders of rec. Dec. 31
Series F. coupon
$2.98
Series U.registered
Reserve Dep. Dep. Other
Loans,
We. Feb. 1 Holders of rec. Jan. 43
United Verde Extension Mining Co
Gross
N. Y. and Banks and
Cash.
Discount &
Universal Leaf Tobacco Co.,corn (quar.) 500 Feb. 1 Holders of roe. Jan. 20
Elsewhere. Trust Cos. Deposits.
Investments.
3
Jan.
rec.
of
Holders
21
144 Jan.
Upson Co. 7% pref. (qua:.)
25o. Feb. 1 Holders of roe. Jan. 10
Walgreen Co., cons., initial (quar.)
$
$
$
$
$
ManhattanWestinghouse Air Brake Co.cap.stk.(qu) 250. Jan. 31 Holders of tee. Dec. 31
49,462,900 *2,346,900 13,599.700 2.332.100 57,254.800
Empire
Feb. 20 Holders of roe. Jan. 23
Westinghse.El.4t Mfg.Co.coin.& pf953,655
5,465.925
419,457
30.366
5.578,841
Federation
White Rock Mineral Springs Co.
8,856.905
321,069
669,012
9,707,589
Fiduciary
500. Apr. 1 Holders of rec. Mar. 17
Common (qua:.)
16,951,200 *2,369,400 1,610,900 1011,000 17,218,000
Fulton
144 Apr. 1 Holders of rec. Mar. 17
First preferred (qua:.)
69,063.055
68,543,719 5,500,000 22,383,038
17
Mar.
States
roe.
United
of
Holdeer
1
Apr.
s$214
Second preferred (guar.)
600. Mar. 1 Holders of rec. Feb. 10
Woolworth (F. W.) Co.cap.stk.(qu.)-BrooklynWoolworth (E. W.) Co.,Ltd..ord. is:IQ rw2s. Feb. 8 Holders of rec. Jan. 13
345,000 105,237,000
93.848,000 2,596,000 24,036,000
Brooklyn
250. Feb. 1 Holders of rec. Jan. 20
Wrigley(Wm.) Jr. Co.(monthly)
26.880.652
23 685.251 1.689.849 8.152.950
1{Inze County
250. Mar. 1 Holders of rec. Feb. 20
Monthly
25o. Apr. 1 Holders of rec. Mar. 20
Monthly
Empire, $1,101,500: Fulton
follows:
as
Reserve
Federal
•
with
amount
Includes
20
Apr.
rec.
of
Holders
1
250. May
Monthly_
$2,204,100.
t The New York Stook Exchange has ruled that stook will not be Quoted exnot es.
further
until
on
this date and not
dividend
jThe New York Curb Exchange Association has ruled that stook will not be
quoted ex-dlvidend on this date and not until further notice.
Boston Clearing House Weekly Returns.-In the fola Transfer books not closed for this dividend.
a Correction. e Payable In stook.
lowing we furnish a summary of all the items in the Boston
(Payable in common stock. g Payable In scrip. is On account of accumulated
Clearing House weekly statement for a series of weeks:
dividends. .1 Payable In preferred stook.
m A dividend, payable in common stock (now owned by General Electric Company) of Radio Corporation of America, at the rate of one-sixth (1-6) of one share
BOSTON CLEARING HOUSE MEMBERS.
of common stock of Radio Corporation of America for each share held of common
stock of General Electric Company was declared.
Week Ended Changesfrom Week Ended Week Ended
o Westinghouse Electric & Mfg. distribution of 14 share of Radio Corp. of America
Jan. 4
Jan. 11
Previous
Jan. 18
stock for each share held. Preferred stockholders have option of receiving $3.50
1933.
to
1933.
constitutes
1933.
feature,
Week.
optional
In cash in lieu of above. Dividend including the
preferred holders full payment of preferential dividend for 1933.
4
$
4
$
p Govt. Gold Mining Areas Cons. Ltd. dly. Is based on Union of So. Africa cur
79.900.000
79,900.000
79.900,000 Unchanged
Capital
✓enoy.
67,605,000
68,742,000
-52,000
68,690,000
profits
and
Surplus
r Amer. Cities Pow.& Lt. class A div.18 payable in cash or 1-32 eh, of Cl. B stook. Loans, disets & invest'ts_ 795,587,000 -2,889,000 798,476,000 802.919,000
577.203,000 +22,161.000 555,042.000 559.725,000
s White Rock Mineral Springs 34 pref. stock pays $2.50 per share on 859 shares- Individual deposits
163,785,000
equivalent to 50c. per share on 4,295 hhares of common stock for which the 2d pref. Due to banks
179.752,000 +2,632,000 177,120,00
188,006,000
so
if
exchanged
common
of
number
equivalent
may be exchanged, and payable on the
192,751,000 -2,519,000 195,270.00
Time deposits
14.814.000
12,247,00
before the record date.
11,206,000 -1.041.000
United States deposits_ _ _
16,529,000
10,312,00
House
+1.692,000
12,004,000
Clg.
for
Exchange,
S Payable In Canadian funds,
+24,906.000 173,015.000 159.076.000
197,920,000
banks
other
from
Due
U Payable In United States funds.
74.219,000
87,489,000
88,629.000 +1,140,000
Res've in legal depositles
9.768.000
o A unit.
8,990.00
-528,000
8,462,000
Cash in bank
4,576.000
16,898,000
15,788.000 -1,110,000
is Law deduction for expenses of depositary.
Res.in excess in F.R.Bk _
▪ Less tax.

Weekly Return of New York City Clearing House.Beginning with March 31 1928, the New York City Clearing
House Association discontinued giving out all statements
previously issued and now makes only the barest kind of
a report. The new returns show nothing but the deposits,
along with the capital and surplus. The Public National
Bank & Trust Co. and Manufacturers Trust Co. are now
members of the New York Clearing House Association,
having been admitted on Dec. 11 1930. See "Financial
Chronicle" of Dec. 31 1930, pages 3812-13. We give the
statement below in full:
STATEMENT OF MEMBERS OF THE NEW YORK CLEARING HOUSE
ASSOCIATION FOR THE WEEK ENDED SATURDAY, JAN. 14 1933.

Clearing House
Members.

• Capital.

'Surplus and
Undivided
Profits.

$
6,000,000
Bank of N.Y.& Tr. Co.
20,000,000
Bank of Manhat. Co____
National City Bank__ 124,000,000
21,000,000
Chemical Bk.& Tr. Co-.
90.000.000
Guaranty Trust Co
32,935,000
Manufacturers Tr. Co_
21,000,000
Central Hanover Bk&Tr.
15,000,000
Corn Exch. Bk.Tr.Co_
10,000,000
First National Bank.-_
30.000.000
/eying Trust Co
4,000.000
Continental Bk.& Tr.Co
Chase National Bank-_ 148,000,000
500,000
Fifth Avenue Bank
25,000.000
Bankers Trust Co
Title Guar.& Trust Co_. 10,000,000
10,000,000
Marine Midland Tr. Co_
3,000,000
Lawyers Trust Co
12.500,000
New York Trust Co....
7,000,000
Com'l Nat. Bk.& Tr.Co.
2,000,000
Harriman N.B.& Tr.Co.
8,250,000
Public N. B.& Tr. Co

Na

Demand
Deposits,
Average.

$
$
85,189.000
9,219,800
281.078,000
36,889.200
81,454,100 a1,015.136,000
253,414.000
45,412,500
181,233,500 1A97,654,000
251,166,000
20,297,500
484,411,000
69,031,200
22,550,000
177,164,000
368,949,000
81,483.400
62,412,100
321,801.000
24,663,000
5,756.000
111,132,900 c1,219,686,000
40,532.000
3,673,000
77,136,100 d527,347,000
20,467.100
24,321,000
5.546,200
41,803,000
8,861,000
2.116,600
201.589,000
22,019,400
45,484,000
8,653,000
22,273,000
941,000
36,435,000
4,406,700

Time
Deposits,
Average.
$
11,810,000
38,418,000
196,098,000
36.842,000
6o.922.000
90.813,000
65,925,000
22,584,000
33,024,000
45.055,000
2.066,000
140,232,000
2,838,000
54,518,000
1,278.000
5,497,000
1,263.000
24,005.000
3,107.000
5,232.000
28,385,000

Philadelphia Banks.-Beginning with the return for the
week ended Oct. 11 1930, the Philadelphia Clearing House
Association began issuing its weekly statement in a new
form. The trust companies that are not members of the
Federal Reserve System are no longer shown separately,
but are included with the rest. In addition, the.companies
recently admitted to membership in the Association are
included. One other change has been made. Instead of
showing "Reserve with Federal Reserve Bank" and "Cash
in Vault" as separate items, the two are combined under
designation "Legal Reserve and Cash."
Reserve requirements for members of the Federal Reserve
System are 10% on demand deposits and 3% on time deposits, all to be kept with the Federal Reserve Bank. "Cash
in Vaults" is not a part of legal reserve. For trust companies not members of the Federal Reserve System the
reserve required is 10% on demand deposits and includes
"Reserve with Legal Depositaries" and "Cash in Vaults."
Beginning with the return for the week ended May 14 1928,
the Philadelphia Clearing House Association discontinued showing the reserve required and whether reserves held are above or
below requirements. This practice is continued.
West Ended
Jan 14
1933.

Changes from
Previous
Week.

Week Ended
Jan. 7
1933.

Week Ended
Dec. 31
1932.

$
$
$
$
77.011,000
76,948,000
76,948,000 Unchanged
Capital
-37,000 151,590,000 200,378.000
151,553.000
Surplus and profits
Loans, dints. and invest_ 1,119,682.000 -3,131,000 1,122,813,000 1,147.331,000
19,653,000
19,948,000
15.868,000 -4,080,000
Exch. for Clearing House
169,052.000 +3,044,000 166,006,000 147,403,000
Due from banks
875,912,000
871,831,300
6,328,956,000
820.185.000
Totals
196,718.000
220,742,000
-627,000
220,115,000
Bank deposits
627.412.000 -3,013.000 630,455,000 629.975.000
31 1932: Trust Individual deposits
• As per official reports: National, Dec. 31 1932: State, Dec.
279,068,000 +2,432,000 276,636,000 281.729,000
'lime deposits
Companies, Dec. 31 1932.
1126.696.000
-1,041,000 1.127,833,000 .108.422,000
Total deposits
94.263.000
90_922.000
-358.000
96.469.000
Includes deposits In foreign branches as follows: (a)$198,867,000:(b)147,971,000: Reeerve with F. It. Bank_
$24,631,000.
(d)
$58,324,000;
0)




454

Financial Chronicle

Jan. 21

1933

Weekly Return of the Federal Reserve Board.

The following is the return issued by the Federal Reserve Board Thursday afternoon, Jan. 19, and showing the condition
of the twelve Reserve banks at the close of business on Wednesday. In the first table we present the results for
the System
as a whole in comparison with the figures for the seven preceding weeks and with those of the correspondin week
last year.
The second table shows the resources and liabilities separately for each of the twelve banks. The FederalgReserve
Agents'
Accounts (third table following) gives details regarding transactions in Federal Reserve notes between the
Comptroller and
Reserve Agents and between the latter and Federal Reserve banks. The Reserve Board's comment upon the
latest week appears on page 403, being the first item in our department of "Current Events and Discussions." returns for the
COMBINED RESOURCES AND LIABILITIES OF THE FEDERAL RESERVE BANKS AT THE CLOSE OF
BUSINESS JAN. 18 1933.

Jan. 18 1833. Jan. 11 1933. Jan. 4 1933. Dec. 28 1932 Dec. 21 1932. Dec. 14 1932. Dec. 7 1932. Noy.
30 1932. Jan. 20 1932.
RESOURCES.
$
Gold with Federal Reserve agents
2,377,803,000 2.345,320.000 2,344,625.000 2,335,345,000 2.297,515.000 2.288,899,000 2,281,059.000
2,242,398,000 2,056,234,000
Gold redemption fund with U.S. Tress_
39,233,000
40.496,000
39,742,000
40.831,000
40.350,000
38.931,000
39.087.000
59,493,000
40,048,000
Gold held exclusively eget. F. R. notes 2,417.036.000 2.385.062.000 2,385.121.000 2,376,176.000 2.337,865,000 2.327.830.000
2,320,146,000
Gold settlement fund with F. R. Board
408,070.000 405,282,000 342.098,000 346,342.000 321,942.000 370.791.000 367.276.000 2,282.446,000 2,115,727,000
339.926.000 363,410,000
Gold and gold certificates held by banks_ 411,335,000 432.189.000 446.137.000 426,013.000 451.814.000 394.716.000
390.641,000 426,952.000 526,777,000
Total gold reserves
3.236,441,000 3,222,533,000 3.173.356.000 3.148.531.000 3,111.621,000 3,093,337,000 3,078,063,000
Reserves other than gold
198,238,000 195.112,000 179,928.000 173,322.000 169.370,000 185.770.000 185,054,000 3,049,324.000 3,005,914,000
192,635,000 189,717,000
Total reserves
3,434.679,000 3,417,645,000 3.353 284.000 3,321,853,000 3.280.991.000 3.279.107,000 3.263,117.000 3,241.959,000
3,195,631,000
Non-reserve cash
91,647,000
87,570,000
82.554.000
84,034,000
70,234,000
74.449.000
73,324.000
77.071.000
76,387,000
Ills discounted:
Secured by U. S. Govt. obligations...
66,496.000 .66,383,000 .71,172.000
77.760.000
77.378.000
87.953.000
95,513.000 103,253,000 438,545,000
Other bills discounted
182,172.000 •181.768,000 •179,930.000 189,622,000 192.937.000 198.520.000 203,105.000 205,720,000
380,441,000
Total bills discounted
248 668,000 248.151,000 251.102,000 287.382.000 270.315.000 284.473,000 298,618.000 308,973,000
818,986,000
Bills bought In open market..
32.362.000
31,926.000
32,617,000
83,307.000
33.221.000
33,769.000
33,717,000
34.880.000 188.041.000
U. S. Government securities:
Bonds
420,755,000 420,763.000 420.901,000 420,740,000 420.703,000 420,669.000 420,637.000
320,213,000
Treasury notes
310,426,000 301.406.000 296,414,000 296.419.000 286.908.000 357,448,000 879,175,000 420,714.000
377.687,000
33,557,000
Special Treasury certificates
Certificates and bills
1,047,012,000 1,090.219.000 1,133,595,000 1.133,578.000 1,143,088.000 1.072.009.000 1,050,865.000 1,052,365,000
397.698,000
Total U.S. Government securities... 1,778,193,000 1.812,388,000 1,850,910.000 1,850.737,000 1,850.699,000 1,850,726.000 1,850,677.000
1,850.768,000
Othersecurities
5,102.000
4,597,000
5,218.000
5,649.000
5.571,000
5,378.000
5,337.000
5.411,000
Foreign loans on gold
Total bills and securities
Gold held abroad
Due from foreign banks
Federal Reserve notes of other banks
Uncollected Items
Bank premises
All other resources
Total resources
LIABILITIES.
F. It. notes In actual circulation
Deposits:
Member banks-reserve acoount
Government
Foreign banks
Other deposits
Total deposits
Deferred availability items
Capital paid in
Surplus
All other liabilities

751.468,000
36,846,000

2,063,384,000 2.098.003,000 2,139.847.000 2,157,075,000 2.169.806.000 2.174,346.000 2,188,349.000 2,200,030,000
1.795,341,000
51,091,000
61.128,000
51.091.000
95.550.000
72.638,000
3,259,000
2.982.000
2.977.000
2,976.000
2,868.000
2.854.000
2,781.000
2.861,000
8,597,000
16,311.000
17.951,000
17.735.000
13.556.000
14,775.000
14,436.000
13,455.000
12,256.000
19.137.000
344,921,000 339.550.000 458,654.000 356.736.000 358,810.000 407.925,000 323,983.000 353,468.000
431,387.000
53,880,000
53.880,000
53.844.000
58,212.000
58,212,000
58,211,000
58,211,000
58,169,000
57,813,000
42,281,000
40,394,000
39.606.000
36,831,000
35.802.000
40,351.000
42.889.000
39,880,000
36,371,000
6,097.376,000 6.113.143,000 6.209,629,000 6.105.130.000 6.075.829.000 6,053.163.000 5,964,625.000 5,985,694,000
5,620,664,000
2,697,295,000 2,687,024.000 2,737,656,000 2.735,458.000 2.756.363.000 2.713.935.000 2,723,686,000 2,692,286,000
2,642,140,000
2,545,151,000 2,573.944,000 2,514,451,000 2,481.674.000 2.446.056.000 2.424.532,000 2,395,484.000 2,410.594.000
1,971,564,000
17,842,000
21,430,000
23,848,000
36.249,000
42.172.000
30.837.000
23.700,000
23,535.000
26,146,000
20.539.000
20.629,000
18,853.000
19,221.000
19,053.000
14,010,000
10.293,000
25.947,000
81,830,000
24,340,000
28.468,000
30,224.000
19,872,000
20,339,000
26.485.000
26,349.000
24,150,000
26,385,000
2,607.872,000 2,644.471,000 2,587,376.000 2.563,238,000 2,521.398.000 2.484,874,000 2.466,816,000 2.484 226
000 2,105,925,000
343,716,000 334,256.000 438,053,000 348.639.000 341.894.000 396,415,000 318,614,000 354.109.000
428,687,000
151,288,000 151.309.000 151,332.000 151,314,000 151.334,000 151.415.000 151,522,000
278,599,000 278,599,000 278,599,000 259,421.000 259,421.000 259,421.000 259.421,000 151,591,000 159,459.000
259,421,000
259,421,000
18,606,000
17,484,000
16,613.000
47,060,000
45.429.000
44.586.000
47.103.000
44.061.000
25,032,000

Total liabilities
6.097.376.000 6.113,143,000 6.209,629,000 6.105.130.000 6.075,829.000 6.053,163.000 5,964.625,000 5
,985.694,000 5,620,664,000
Ratio of gold reserve to deposits and
F. R. note liabilities combined
61.0%
60.4%
59.5%
59.4%
59.3%
59.5%
58.9%
58.9%
62.8%
Ratio of total reserves to deposits and
F. R. note liabilities combined
64.7%
64.1%
63.0%
62.2%
62.7%
62.9%
63.1%
62.6%
Contingent liability on bills purchased
67.3%
for foreign -orrespondents
40,724.000
39,932.000
40.157,000
36,338,000
36,171.000
36,117.000
35,911,000
32,329.000 285,299,000
Maturity Distrilndion of Bills and
8
Short-Term Securities1-15 days bills discounted
171.772,000 170.733,000 175.810,000 187.581.000 189,212.000 198.229,000 214,371.000
224,502.000 632,804,000
16-30 days bills discounted
20,135,000
21,085.000
18,722.000
20.297.000
20.288.000
22,697.000
22,969,000
22.795,000
44,002,000
111-00 days bills discounted
27,648.000
26,976,000
28,164,000
30,095,000
29,013,000
30,209,000
32,119,000
30.572,000
72,553,000
51-90 days bills discounted
18,398.000
18,526.000
17,794,000
19.446,000
19,503,000
20.403,000
19.724,000
20,088,000
48,751,000
Over 90 days bills discounted
10,715,000
10,831,000
10.612.000
10.997.000
11.265.000
10.938,000
11.432.000
11,016.000
20,873,000
Total bills discounted
248,668,000 248,151.000 251,102.000 267,382.000 270,315,000 284,473.000 298.618,000
308.973,000 818,986,000
1-15 days bills bought In open market
5,161,000
5,111,000
6.064,000
8.081,000
6.452 000
4,074.000
2,738.000
11,276,000
79,616,000
16-30 days bills bought in open market
6,637,000
6,489.000
5,857,000
4,855,000
5,742,000
4,559,000
2,766.000
7,850.000
24,205,000
31-60 days bills bought in open market
10,157,000
11,818.000
10,242,000
10.385.000
11.003.000
2.258,000
1.923,000
7.319.000
50,946,000
61-00 days bills bought in open market
9,971,000
7,991.000
11,407,000
10,728,000
9.302.000
24,162,000
25,006,000
8,435.000
32,697,000
Over 90 days bills bought In open market
567,000
Total bills bought In open market
31,926,000
32.362.000
32.617,000
33.221,000
33.307.000
33.769,000
33,717.000
34,880.000 188,041,000
1-15 days U. S. certificates and bills
83,325.000 119,758.000 108.583,000
56,250.000
68,355.000
63,000,000
28,450,000
16-30 days U. S. certlttcates and bills
87,800,000
62.975.000
83,325,000 119.758.000 108,564,000
58,356.000
68.000.000
70.500.000
54,836,000
31-60 days U. S. certificates and bills
274,231,000 143.550.000 192.750.000 151,525.000 171,125,000 177,733,000 162,839,000 14
9,064.000 103,613,000
61-90 days U. B. certificates and bills.,..
54,250,000 213,031.000 213,031,000 224.284,000 274,731,000 143,550.000 160,550.000
8,050,000
Over90 days certificates and bills
547,406,000 550,905.000 535.906,000 579.656,000 532,418,000 629.970.000 659,476.000 164,325,000
668.476,000 202.749,000
Total U. S. certificates and bills
1,047,012,000 1,090,219.000 1.133,595,000 1,183,578.000 1.143.088.000 1,072.609.000 1,050.865,000 1,052,365,000
1-15 days municipal warrants
397,698.000
4,089.000
4,558,000
4,818.000
4,735.000
5.340,000
3,951.000
4,156,000
5.088.000
16-30 days municipal warrants
2,542,000
14,000
1.000.000
387.000
1,139.000
823.000
296,000
822,000
10,000
31-60 days municipal warrants
100,000
13.000
13.000
288.000
559,000
813,000
61-90 days municipal warrants
212,000
13.000
13.000
Over 90 days municipal warrants82,000
25,000
Total municipal warrants
4,597,000
5.102,000
5.218.000
5.571.000
5.649,000
5,378.000
5,337.000
5.411,000
2,936,000
Federal Reserve NotesIssued to F. R. Bank by F. R. Agent... 2,932,263,000 2.929.953.000 2.980,366.000 2.999,717.000 3.005.204.000 2.960,303.000 2.946.756.000
Heldby Federal Reserve Bank
234,968,000 242.929.000 242,710,000 264.259,000 248.841.000 246,368.000 223,090,000 2,913.683,000 2,919,978,000
221.397,000 277,838,000
In actual circulation
2,697,295,000 2,687.024,000 2.737,656.000 2.735.458,000 2.755,353.000 2,713,935.000 2,723,666.000 2,
692,286,000 2,642,140,000
Collateral field by Agent as Security
for Notes Issued to BankBy gold and gold certificates
1122,158,000 1,111,675,000 1.089.365.000 1.105.285,000 1,078,255,000 1,125,479,000 1,138.889.000 1
Gold fund-Federal Reserve Board
1,255,645,000 1,233.645.000 1.255,260.000 1,230,060,000 1,221.269.000 1,163,420.000 1,142.170.000 ,085,353.000 829,854,000
By eligible paper
233,636,000 232.679.000 235.401.000 252.304,000 254.606.000 268.735,000 282.976.000 1.157.045.000 1,226,380,000
U. B. Government securities
354.600,000 384.400.000 426,100,000 428,500.000 471,600.000 426.300.000 408.600,000 293.944,000 962,085,000
414.400.000
Total
2,966,039,000 2,962,399,000 3.006.126,000 3,016.149,000 3,023.721,000 2,983,934.000 2.972.535.000
2.950.742,W 3.018 319 000
• Revi-ed Ogres.
WEEKLY STATEMENT OF RESOURCES AND LIABILITIES OF EACH OF THE 12 FEDERAL RESERVE BANKS AT CLOSE
OF BUSINESS J
-- Two Ciphers (00)omitted.
I
Federal Reserve Bank of- ( Total.
Phila. Cleveland, Richmond Atlanta. Chicago. Si. Louis. Minimal) Kan.Olty.
Boston. New York
Dallas. son pron.
RESOURCES.
s
$
$
s
s
$
s
s
s
$
s
s
Gold with Fed. Res. Agents__12,377,803,0
103,327,0 693,293,0 155,500,0 187,970,0 71,500.0 59.500,0
696,010.0 111,005,0 42,400,0 62,480,0 23,065.0 :
Gold redem.fund with U.S.Treas. 39.233,0 1,941,0
180,763,0
5,649,0 5,318,0 5,616,0 1,849,0 3,062,0
3,200,0 1,447,0 2,187,0 2,076.0
1,343,0 5,545,0
Gold held excl. agst.F.R. notes 2,417,036,0 195,268.0 598,942,0 160,818.0 193,586,0 73,349,0 62,562,0 700,110,0
44,677,0 64.556,0 24,408,0 186.308.0
Gold settlem't fund with F.R.Bd 408,070,0 17,677,0 137,020,0 18,470,0 29,563,0 10,561,0 6,941,0 118,052,0 112,452.0
16,487,0 11,828,0 14,753,0
Gold & gold ctfs. held by banks_ 411,335,0 14,827,0 289,713,0 8,048,0 18,850,0 3,403,0 8,674.0
20,093,0
24,860,0 2,510,0 1,957,0 8,380,0 6,625,0
4,005,0 26,108,0
Total gold reserves
3,236,441,0 227,772,0 1,025,675,0 187,336,0 241,999.0 87,313,0 78.177,0 843,022.0 131,449,0 58,462,0
87,689,0
Reeervas other than gold
I 198.238,0 18,850,0
232,509,0
61,525,0 20,835,0 13,344,0 10,043,0 5.707,0
27,978,0 8,987,0 4,657,0 7,120,0 35,038.0
8,410,0 10,773,0
Total reserves
3,434,679,0 246.622,0 1,087,200,0 208,171.0 255,343.0 97,356,0 83,884.0 871,000,0 140,436,0 63,119,0
94,809,0 43,457,0
Non-reserve cash
87,570.0 6,404,0
26,278.0 4,205,0 5,262.0 3,963,0 4,577,0
15,420.0 3,467,0 2,232,0 2,904.0 3.622,0 243.282,0
BOW discounted:
9,236,0
66.496,0 3.593,0
Sec. by U.S. Govt. obligati°
26,271,0 10.898,0 7,657,0 2,084,0 1,612,0
3,655,0 4,190,0
317,0
467,0
283.0 5,469,0
Other bills discounted
I 182,172,0 8,626,0
30,077,0 35.900,0 17,049,0 13,687,0 16,106,0
11,260,0 4,833,0 10,047,0 10,971,0 3,909,0 19,707,0
Total bills discounted
248,668,0 12,219,0
56,348,0 46.798,0 24,706,0 15,771,0 17,718,0
14,915,0 9,023,0 10,364,0 11,438,0 4,192,0 25,176,0
Rillotywoht in nnOn market
I 31.026.0 2.161.0
9.784.0 3.115.0 2.920.0 1 727 0 2911.0
3.8,18.0
046.0
640.0
856 n
AKA n
o two n




455

Financial Chronicle

Volume 136
Two Ciphers (00) omitted.
RESOURCES (Concluded)-

II.S. Government securities:

Boston. New York

Total.
$

Phila.

Cleveland. Richmond Atlanta.
$

$

$

$

$

Chicago.

St. Louis. Minneap. Kan.City. Dallas. San Fran.

8

$

$

$

$

3

8

420,755,0 20,251,0
310,426,0 .17,273,0
1 047,012,0 54,900,0

187,592,0 31,054,0 36,338,0 9,606,0 9,510,0
124,147,0 24,461,0 32,085,0 8,482,0 8,379,0
394,753,0 77,743,0 101,975,0 26,960,0 26,632,0

41,175,0 13,882,0 17,183,0 11,726,0 17,278,0 25,160,0
36,356,0 11,816,0 8,492,0 10,290,0 6,429,0 22,216,0
175,812,0 37,555,0 26,932,0 32,707,0 20,434,0 70,609,0

Total U.S. Govt.securities_ 1,778,193,0 92,424,0
4,597,0

706,492,0 133,258,0 170,398,0 45,048,0 44,521,0
3,558,0 1,025,0

253,343,0 63,253,0 52,607,0 54,723,0 44,141,0 117,985.0
14

776,182,0 184,196,0 198,024,0 62,546,0 65,150,0
51,091,0
328,0
295,0
116,0
104,0
1,372,0
936,0 1,168,0
321,0
6,524,0
708,0
95,839,0 28,861,0 33,655,0 26,656,0 8,950,0
12,818,0 3,024,0 6,929,0 3,237,0 2,422,0
22,261,0 1,105,0 1,985,0 3,045,0 4,092,0

272,106,0 73,222,0 63,625,0 67,017,0 49.189,0 145,323,0

Bonds
Treasury notes
Certificates and bills

0ther securities

Total bills and securities
old held abroad
ue from foreign banks
ed. lies. notes of other banks
ncollected items
ank premises
A II other resources

2,063,334,0 106,804,0
51,091,0
228,0
3,259,0
16,311,0
270,0
344,921,0 40,071,0
53,880,0 3,280,0
667,0
42,281,0

16,0
406,0
612,0
2,042,0
40,811,0 14,499,0
7,595,0 3,285,0
1,527,0 1,550,0

11,0
209,0
87,0
87,0
384,0 1,402,0
194,0 1,750,0
7,528,0 17,676,0 12,733,0 17,642,0
1,746,0 3,559,0
1,741,0 4,244,0
1,979,0
945,0 1,442,0 1,683,0

Total resources
6,097,376,0 404,346,0 2,079,565,0 430,211,0 502,429,0 198,087,0 169,887,0 1,210,907,0 237,087,0 140,624,0 188.399,0 112,465.0 423,369,0
LIABILITIES.
.R. notes in actual circulation_ 2,697.295,0 187,094.0 556,056,0 229,520,0 278,376,0 97,318,0 96,791,0 685,293,0 137,085,0 80,980,0 90,511.0 37,304,0 220,967,0
'eposits:
Member bank reserve account 2,545,151,0 142,220,0 1,264,534,0 124,749,0 140,105,0 52,961,0 43,131,0 417,874,0 62,752,0 38,666,0 65,057,0 46,051, 147,051,0
494,0
530,0
Government
2,894,0 3,006,0 1,520,0 1,601,0
732,0 1,003,0 2,869,0
277,0
894,0
17,842,0 2,022,0
565,0
565,0 1,363,0
448,0
Foreign bank
662,0
7,570,0 2,045,0 1,928,0
759,0
682,0
2,531,0
20,539,0 1,421,0
377,0
163,0
235,0 4,559,0
Other deposits
926,0
2,257,0 1,959,0
24,0
9,280,0
116,0 1,853,0 2,591,0
24,340,0
Total deposits
leferred availability items
apital paid In
SIarplus
A II other liabilities

2,607,872,0
343,716.0
151,288.0
278,599,0
18,606,0

145,687,0 1,282,116,0 127,913,0 146,755,0 56,588,0 45,633,0
94,007,0 27,254,0 33,101,0 25,686,0 9,303,0
39,741,0
58,618,0 16,023,0 14,157,0 5,153,0 4,726,0
10,830,0
85,058,0 29,242,0 28,294,0 11,616,0 10,544,0
20,460,0
259,0 1,746,0
534,0
3,710,0
1,721,0 2,890,0

425,556,0 68,379,0 41,011,0 67,386,0 97.345,0 153,503,0
41,704,0 15,974.0 7,719,0 17,427,0 14.100,0 17,700,0
16,145,0 4,360,0 2,886,0 4,043,0 3,918,0 10,424.0
39,497,0 10,186,0 7,019,0 8,263,0 8,719,0 19,701.0
769.0 1,079,0 1,074,0
2,712,0 1,103,0 1,009,0

Total liabilities
6,097,376,0 404,346,0 2,079,565,0 430,211,0 502,429.0 198,087,0 169,887,0 1,210,907,0 237,087,0 140,624,0 188,399,0 112,465,0 423,369,0
Memoranda,
oserve ratio (per cent)
51.3
65.0
78.4
68.4
51.7
60.0
59.1
58.2
60.1
63.3
58.9
74.1
64.7
Contingent liability on bills purohnspa fro.In,.,.,,....---_,..
.,.. Fyn., 11
n n•r m n
50 mcn n 5 990 n ,I. nge. n
1 son n
1 ,f90. n
5 0070
1 7550
0570 1 1526 1 159 n 2 552 9

FEDERAL RESERVE NOTE STATEMENT
Federal Reserve Agent at-

Boston. New York.

Total.

Two Ciphers (00) omitted.
8
$
Federal Reserve notes:
Issued to F.R.I3k. by F.R.Agt. 2,932,263,0 207,502,0
Held by Fed'I Reserve Bank_ 234,968,0 20,408,0

Phila.

$

In actual circulation
2,697,295.0 187,094.0
Collateral held by Agent as Security for notes issued to bks
Gold and gold certificates
1.122.158,0 47,010,0
Gold fund-F.it. Board
1,255,645,0 146,317,0
Eligible paper
233,636,0 12,202,0
U. S. Government 8ecurities
354,600,0 2,900,0
_
Total collateral
9 ann rign ri 295 4216

Chicago. St. Louis. Minneap. Kan.City. Dallas. San Fran.

Cleveland. Richmond Atlanta.
8

$

$

$

$

$

$

S

$

$

628,693,0 243,646,0 290,910,0 104,147,0 114,783,0
72,637,0 14,126,0 12,534,0 6,829,0 17,992,0

718,792.0 145,631,0 83,733,0 97,992,0 41,640,0 254,794,0
33,499,0 8,546,0 2,753,0 7.481,0 4,336.0 33,827.0

556.056,0 229,520,0 278,376,0 97,318,0 96,791,0

685,293.0 137,085,0 80,980,0 90,511,0 37,304,0 220,967.0

484,293,0 78,290,0 71,470.0 18,345,0
109.000,0 77,210,0 116,500,0 53,155,0
53,467,0 46,664,0 24,595,0 16,293,0
42,000.0 80.000,0 17,000,0

264.910,0 23,505,0 13,090,0 10.680,0 12,165,0
432,000,0 87.500,0 28,500,0 51,800,0 10,900,0
14,049,0 8,750,0 8,835,0 10.758,0 3.788,0
10,000,0 26,000,0 32.700,0 27.000,0 15,000,0

14,000,0
45,500,0
18,084,0
39,000,0

646.760.0 244.164.0 292.565.0 104.793.0 116.584.0

83,500,0
97,263,0
15,551,0
63,000,0

721.559.0 145.755.0 84.025.0 100.238.0 41.853.0 259.314.0

Weekly Return for the Member Banks of the Federal Reserve System.

Following is the weekly statement issued by the Federal Reserve Board, giving the principal items of the resources
and liabilities of the reporting member banks from which weekly returns are obtained. These figures are always a week
behind those for the Reserve banks themselves. Definitions of the different items in the statement were given in the statement of Dec. 14 1917, published in the "Chronicle" of Dec. 29 1917, page 2523. The comment of the Reserve Board upon
the figures for the latest week appears in our department of "Current Events and Discussions" on page 404, immediately preceding which we also give the figures of New York and Chicago reporting member banks for a week later.

Beginning with the statement of Jan. 9 1929, the loan figures exclude "Acceptances of other banks and bills of exchange or drafts sold with endorsement" and include
all real estate mortgages and mortgage loans held by the bank. Previously acceptances of other banks and bills sold with endorsement were included with loans, and some
of the banks included mortgages in Investments. Loans secured by U. S. Government obligations are no longer shown separately. only the total of loans on securities
being given. Furthermore,
at the Federal Reserve is not any more subdivided to show the amount secured by U. S. obligations and those Secured by commercial
paper, only a lump total borrowing
given. The number of reporting banks Is now omitted: in Its place the number of cities Included (then 101), was for a time given, but beginning Oct. 9 1929 even thisbeing
The figures have also been revised to exclude a bank In the San Francisco district with loans and investments of 8135.000.000
has
been
omitted.
on Jan. 2 1929, which had then recently merged
with a non-member bank. The figures are now given in round millions Instead of In thousands.
PRINCIPAL RESOURCES AND LIABILITIES WEEKLY REPORTING MEMBER BANKS IN EACH FEDERAL RESERVE DISTRICT AS AT CLOSE OF
BUSINESS JAN. 11 1933 (In millions of dollars).
Federal Reserve District-

I
Total.

I

Loans and Investmenta-total
Loans--total

Phila.

Cleveland. Richmond Atlanta. Chicago. St. Louts. Minneap. Kan.Citp. Dallas. San Fran
376

$
1,716

1,347

268

171

238

227

961

589
758

109
159

51
120

77
161

70
157

237
724

181

722

245

117

263

149

755

98
33

406
316

126
119

58
59

147
116

93
56

423
332

31
8
217
205
19
77
89
-

368
41
1,324
883
21
360
402
...

43
13
335
179
4
170
168

28
8
221
131
13
100
91

90
16
562
924
35
194
199

1,065

299

315

481
584

112
187

105
210

491

809

267

235
256

488
321

159
108

81
12
658
297
24
157
223

111
25
843
801
21
115
245

35
13
282
231
8
90
103
.

$
1,874

10,136

662

3,986

597

4,237
5,899

270
392

1,828
2,158

308
289

8,537

497

4,041

5,262
3,275

318
179

2,711
1,330

2,137
216
11,940
5,701
286
1,819
3,562

100
16
732
400
14
214
185

1,191
51
6,319
1,311
123
150
1,682

1

601

$
2,069

$
1,088

U.S. Government securities
Other securities

288

496

$
8,027

Investments-total

513

566

$
1,159

On securities
All other

Reserve with F. R. Dank
Cash In vault
Net demand deposits
Time deposits
Government deposits
Due from banks
Due to banks
Borrowings from p n n...,

Boston. New York

$
18,673

$

8

$

$

$

8

18
41
5
s
149
298
139
200
31
117
75
61
11

Condition of the Federal Reserve Bank of New York.

The following shows the condition of the Federal Reserve Bank of New York at the close of business Jan. 18 1933, in
comparison with the previous week and the corresponding date last year:
ResourcesGold with Federal Reserve Agent
Gold redemp. fund with U. S. Treasury_
Gold held exclusively agst. F. it. notes
Gold settlement fund with F. R. Board.
Goldand gold certificates held by bank_
Total gold reserves
Reserves other than gold

Jan. 18 1933. Jan. 11 1933. Jan. 20 1932.
593.293,000
5,649,000

601,535.000
5.812.000

460,239 000
11.453,000

598,942,000
137,020.000
289,713,000

607,347.000
139,991,000
309,356,000

471,692,000
184,376,000
327,387,000

1,025,675,000 1,056,694,000
61,525,000
59,413,000

983.455,000
42,967,000

Total reserves
1,087,200,000 1,116.107,000 1,026,422,000
Non-reserve cash
26,278,000
26,648,000
22,907,000
Bills discounted:
Secured by U. S. Govt. obligations...
26,271,000
27,492,000 124,034,000
Other bills dLscounted
30,077,000
31,070,000
43.521,000
Total bills discounted
Bills bought in open market
U. S. Government securities:
Bonds
Treasury notes
Special Treasury certificates
Certificates and bills

06,348.000
9,784,000

58.562,000
10,027,000

167:;11:::11

187,592,000
124,147,000

187,054,000
120,343,000

111,467,000
17,720,000

394,753,000

411,747,000

155,214,000

Total U.S. Government securitiesOther securities (see note)
Foreign loans on gold

706,492,000
3,558,000

719.144.000
3.711,000

284,401,000
19.336,000

Total bills and securities (see Cole)....

776,182.000

791.444,000

527,996,000

Jan. 18 1933. Jan, 11 1933, Jan. 20 1932.
Resources (Concluded)Gold held abroad
Due from foreign banks (see note)
Federal Reserve notes of other banks...Uncollected Items
Bank premises
All other resources
Total resources

51,091,000
1,372,000
6,524,000
95,839,000
12,818,000
22,261,000

51.091,000
1.095,000
6.656.000
101,986,000
12,818,000
21,096,000

3,079,000
6,493.000
129,202,000
14,817,000
13,342,000

2,079,565,000 2.128,941,000 1,744,253,000

LiabilitiesFed. Reserve notes In actual circulation_ 556,056,000 562,137,000
Deposits-Member bank reserve acct._ 1,264,534,000 1,300,852.000
Government
732,000
2,970.000
Foreign bank (see note)
7,570,000
7,660,000
Other deposits
9,280,000
9,901,000

572,493.000
852,276.000
3,128.000
37,105,000
10,684,000

1,282,116,000 1,321,383,000
98,051,000
94,007,000
58,619.000
58,618,000
85,068.000
85,058,000
2,793,000
3,710,000

903,193,000
125,631,000
60.913,000
75,077,000
6,946,000

Total deposits
ISs
ep
frzdpiitivilln
abillty items
Surplus
All other liabilities
Total liabilities
Ratio of total reserves to deposit and
Fed. Reserve note liabilities combined
Contingent liability on bills purchased
for foreign correspondents

2,079,565,000 2,128,941,000 1,744,253,000
59.1%

59.3%

69.6%

13,586,000

13,697,000

93,595.000

NOTEI-BegInnIng with the statement of Oct. 17 1925. two new items were added In order to show separately the amount of balances held abroad and amounts due to
foreign correspondents. In additi m, the caption "Al) other earnings assets," previously made up of Federal Intermediate Credit Bank debentures, was changed to "Other
securities." and the caption, "Total earnings assets" to "Total bills and securities." The latter term was adopted as a more accurate description of the total of the discount
seeeptanoes and securiti s acquired under the provisions of Sections 13 and 14 of the Federal Reserve Act, which It was stated are the only Items included therein




456

Financial Chronicle

Sinunrid

are
Tamintrri'L

(firanirle

PUBLISHED WEEKLY

Terms of Subscription—Payable in Advance
Including Postage-12 Mos.
6 Mos.
Within Continental United States except Alaska
$10.00
$6.00
In Dominion of Canada
11.50
6.75
South and Central America, Spain, Mexico, U. S.
Possessions and Territories
13.50
7.75
Great Britain, Continental Europe (except Spain), Asia,
Australia and Africa
15.00
8.50
The following publications are also issued:
COMPENDIUMS—
MONTHLY PUBLICATIONS—
PUBLIC UTILITY—(senn-annually)
BANE AND QUOTATION RECORD
RAILWAY SL INDUSTRIAL—(fMW a year) MONTHLY EARNINGS RECORD
STATE AND MtusscirAL—(semi-ann•)
The subscription price of the Bank and Quotation Record and the
Monthly Earnings Record is $6.00 per year each; for all the others is
85.00 per year each. Foreign postage extra.
NOTICE.—On account of the fluctuations In the rates of exchange.
remittances for foreign subscriptions and advertisements must be made
In New York funds.

Terms of Advertising
Transient display matter per agate line
45 cents
Contract and Card rates
On request
CamAn° OFFICE—In charge of Fred. H. Gray, Western Representative,
208 South La Salle Street, Telephone State 0613.
LONDON OFFICE—Edwards & Smith, 1 Drapers' Gardens, London. E. C.

WILLIAM B. DANA COMPANY, Publishers
William Street, Corner Spruce, New York.
Published every Saturday morning by WILLIAM B. DANA COMPANY.
President and Editor, Jacob Seibert:
Business Manager, William D. Riggs:
Treas., William Dana Seibert; Sec., Herbert D.Seibert. Addresses of all, Office of Co.

Wall Street, Friday Night, Jan. 20 1933.
Railroad and Miscellaneous Stocks.—The review of the
Stock Market is given this week on page 445.
The following are sales made at the Stock Exchange this
week of shares not represented in our detailed list on the
pages which follow:
STOCKS.
Week Ended Jan. 20.

Sales
for
Week.

Range for
Lowest.

Week.

'Range for Year 1932.
1
I Lowest.
Highest.

Highest.

Railroads—
Pa Shares.$ Per share.$ per share. 15 per share.$ per share.
Chic St P M&Opfd_100
150 2 Jan 19 24 Jan 18
Colo & Sou 1st pref_100
330 14
Jan 17 15 Jan 14 8
Ma 30
Sept
100
Cuba RR pref
110 291 Jan 16 4 Jan 14 246 Dec 20
Aug
Havana Elec Ry pfd 100
20 134 Jan 19 141 Jan 19 1
July 4
Nov
Hudson & Manh pfd100
100 36 Jan 16 36
Jan 16 2434 May 48
Jan
Int Rys Cen Am pfd 100
110 6
Jan 14 6
Jan 14 341 Jun 1141 Sept
Iowa Central
100
120 134 Jan 20 14 Jan 20
31 Aug 191 Dec
Nash Chatt & St L_100
20 1466 Jan 16 144 Jan 16 746 May 3046 Sept
Nat Rys Mex 1st pfd100
200
34 Jan 16 .44 Jan 16 41 May 46 Sept
Pacific Coast 1st pfd100
40 241 Jan 16 241 Jan 16
166 Dec 1334 Sept
Indus. & Miscell.—
Amer Radiator & Stand
Sanitary pret _ _ _100
Asso Dry Gds lstpfd100
100
2,1 preferred
Brown Shoe pref_ _ _100
Burns Bros CIA Ws_ __*

40 91
Jan 19 91
200 22 Jan 16 2246
200 15 Jan 19 15
10 109
Jan 14 109
100
31Jan20
34

Jan
Jan
Jan
Jan
Jan

191 70
19 1861
19! 124
14 100
20
46

July 120
Dec 42
Dec 35
Aug 1194
Dec 14

Jan
Sept
Mar
Jan
Jan

Comm Inv Tr wars spd.
Cr Nrmette 1st pfd__•
Cushm Sons p1(7%) 100
Preferred (8%)____•
Devoe & Reynolds100
1st preferred
Dresser Mfg class A__*
Class B
Eng Pub Serf pf (6) *
Fed Min& Smelt pf_100
Franklin Simon pf_10

300
933 Jan 14
iss
10 2246 Jan 14 224
20 7546 Jan 19 754
20 62 Jan 16 62

Jan
Jan
Jan
Jan

14
913 Nov 146
14 19
Dec 37
19 6041 June 90
16 4946 June 76

Sept
Mar
Mar
Mar

20
3001
100
500
1001
90

8811
74
3
36
19
14

Jan
Jan
Jan
Jan
Jan
Jan

17
17
20
16
19
19

90
746
3
3646
19
15

Jan
Jan
Jan
Jan
Jan
Jan

17
171
20
18
19,
20

Feb
Feb
Feb
Mar
Nov
Jan

Indian Motocycle p1100
Island Creek Coal pf_ _1
Keith-Albee Orhp p1100
Kelly Springt Tire new *
Kresge Dept Stores_'
Laclede Gas pref _ _..100
Newport Industrles
1
Omnibus Corp pref_100

1

7
90
1241
166
2
61
161
64

Jan

10
300
800
10
60
100
200

Jan
Jan
Jan
Jan
Jan
Jan
Jan

20 7
16 90
17 1231
17 1%
14 2
16 61
19 161
17 66

Jan
Jan
Jan
Jan
Jan
Jan
Jan
Jan

20 6
16 85
171 7
16.
14 1
16 40
19 146
18 54

Jan
Jan
Jan
Jan

18 110
20 16
18 436
14 16

Jan
Jan
Jun
Jan

17 8541 Jun 109
Jan
20 14
May 41
Jan
18 5
Dec 1241 Mar
14 8
Ap 1666 Oct

30 1046 Jan
10 2861 Jan
Jan
10102
Jan
20 5931 Jan
10 50
Jan
70
Jan
• No par value. e Cash sale.

16 11
18 2861
17 104
20102
16 5946
20 50
18
34

Jan
Jan
Jan
Jan
Jan
Jan
Jan

17
18
19
20
16
20
18

Pac Tel & Tel pref _100
Pierce-Arrow Co pf_100
Pitts Term Coal p1..100
Shell Transp & Trad_C2
Sloss-Sheff St. & Tr—
Preferred
100
United Dyewood p1_100
S Gypsum pref _ _100
tiniv Leaf Tob pref.. 100
Vulcan DetInning p1100
Webster ELsenlohr pf100
Wells Fargo & Co_ __ _11

90 108
2001 15
20 4
10 16

17010134

59%
5
166
25
15
15

6
20
8434
70
62
204
41

June
July
Dec
June
June
Oct

95
23
1246
614
28
7246

Aug 27
Apr 90
May 30

Jan
Dec
Sept

ApII 5
July 65
JuDd 366
Jund 71

Mar
Sept
Aug
Mar

July 294
Dee 40
June 105
July 100
May 80
Jan 40
July 161

Sept
Sept
Oct
Nov
Aug
Oct
Sept

Quotations for United States Treasury
Certificates and Notes.—Friday, Jan. 20.
If(aunty.

frg.
Rate.

Bid.

Asked.

Maturity.

Int.
Rate.

Bid.

Asked.

Dec. 15 1933.__
Sept. 15 i933.__
June 15 1933_
Mar. 15 1933...
May 2 1933.__
Aug. 1 1934_
run 11 1936

34%
141%
146%
2%
2%
24%
261%

100933
100.931
109999,1
100933
10099,,
1019933
101",,

1(;099,3
100022
1009913
1009933
1009910
1012,22
101.3,,

May 2 1934___
fune 15 1935.-April 15 1937 _._
Aug. 1 1936—
Sept. 15 1937...
Feb. 1 1933...
Mar. 15 1B33..._

3%
3%
3%
341%
334%
34%
3ti%

10299,,
10294,3
1023s,
103'11
103'31
100.31,
1003..

1029933
102341,
102911
103"as
103'n
100.3,,
10013.

U. S. Treasury Bi Is.—Friday, Jan. 20.
Rates quoted are for discount at purchase.

Jan. 25 1933
Feb. S 1933
Feb. 15 1933

Bid.

Asked.

0.30%
0.30%
0.30%
n :Wm

0.15%
0.15%
0.15%
a 15.7-.




Mar. 1 1933
Mar. 29 1933
Apr. 12 1933
Ara- 19 1933

Jan. 21 1933

United States Liberty Loan Bonds and Treasury
Certificates on the New York Stock Exchange.—
Below we furnish a daily record of the transactions in
Liberty Loan and Treasury certificates on the New York
Stock Exchange. The transactions in registered bonds are
given in a footnote at the end of the tabulation.

Bid.

Asked,

0.30%
0.30%
0.30%
n 3n oz.

0.15%
0.15%
0.15%
o I sw_

Daily Records! U. S. Bond Prices. Jan. 14 Jan. 16 Jan. 17 Jan. 18 Jan. 19
—
—
1022,s3 10299n 102"ft 1022732 10210,2
102",, 1022.,, 102",, 102°12 1029933
102993, 102"sf 102"" 102",, 1023.,,
41
223
13
32
61

First Liberty Loan
High
34% bonds of 1932-47__ Low_
(First348)
Close
Total sales in $1,000 unlit__
Converted 4% bonds of High
i
1932-47
Close
Total sales in $1,000 untis___
Converted 434% bondsrlIgh
of 1932 47 (Firi,t 4;1',0 Low_
Close
Total sates in $1,000 units__
Second converted 43-4 % High
bonds of 1932-47 (First( Low_
Second 4340
Total sales in $1,000 units_ __
Fourth Liberty Loan
{High
431% bonds of 1933-38
Low_
(Fourth 434s)
(Close
Total sates in $1,000 units_ _ _
Treasury
{MO
4.4e, 1947-52
Low_
Close
Total sales In $1,000 units-High
433. 1944-1954
Low_
Close
Total sales in 31.000 units__
Smith
341s, 1946-1956
Low..
Close
Total sates In $1,000 units__
High
34s. 1943-1947
Low_
Close
Total sales in 31,000 unUs___
{High
3s. 1951-1955
Low_
Close
Total sales in $1,000 units__
{HIV;
34s, 1940-1943
Low_
Close
Total sales in $1.000 units__
High
348, 1941-43
Low_
(Close
Total sales ta $1.000 anUs___
(Filch
346s, 1946-1949
Low..
Close
Total sales in 81.000 units__ _

Jan. 20
-103',,
103
103
75

---__---__
____
____
____
102022 102022 102,22 102933 1029333 10230,,
1020,1 102..,, 102
102
102.22 1021.22
1029933 1029033 102
102933 102")
, 1022023
5
67
90
50
222
33
----

---_

-___

---------_
10399
.103",,103933
103.0,, 1033,1 103.,,
103.3,, 1033,, 1033,,
189
301
263
110022 110822 100.'32
110012 1103,, 109..,,
110022 110322 1092,22
58
56
154
106,.22 106,422 106”22
1069133 106993, 1059.33
1069933 106022 106.22
9
34
540
104993, 1049933 10499n
104"22 101,,22 103.022
104,h3 104"43 1049933
4
43
63
102.0,, 102.01, 10130,2
102.03, 1013.,, 1013,2
102.01, 101 301, 1011 ,,
1
33
209
9833,, 9814,, 98
98'33
98
979931
98
93933
970933
56
117
405
102422 102022 101 3,22
102422 1011722 101022
102.22 101"22 101022
80
2
244
102933 102993 1012033
102'a 101,'31 101 0031
1029n 10199n 1019933
6
114
113
99333, 9921" 9933,,
999933 99"13 98"12
950,, 99l
135
262
731

____

____

_ ___

.._ __
____
103933 103.33
1033,, 103983
1033,, 103.0,,
162
169
110'13 11010a
10933,, 1103,,
110
110,92
132
269
106022 106,.22
106933 106,033
10139931 106",,
187
491
10499,3 104,1n
104022 104022
10499,3 101."
210
381
10123,, 102
101 1.,, 101 33,,
101',, 101"33
115
40
98933
98,22
972
.
9
97"22
97203, 979933
87.3
653
101..22 101.92
101",, 1010,a,
101.422 101022
33
16
10199,3 10123,3
101022 101022
1019913 1019933
56
49
994., 9933.,
08"13 99.22
98i,,
98"22 99933
2 A7I
4127

___ _
1039933
103011
103.3s,
366
110022
110.0n
110.12
156
1069983
1069933
106",,
154
105933
104"22
105933
287
1022s,
101.3::
1022,1
67
98933
972 s2
98412
634
102.12
101"n
102'22
90
102931

1012.”

1029n
85
9933.,
99',,
990931
I KR,

Note.—The above table includes only sales of coupon
bonds. Transactions in registered bonds were:
3
33
2
6
3

1st 44s
4th 4415
Treasury 441s
Treas. 366s, 19-13-47
Treas. 33.4,

1019933 to 1019933
103933 to 103933
109022 to 1092,22
101.31 to 109'22

ossoo to mutt

Foreign Exchange.—
To-day's (Friday's) actual rates for sterling exchange were
3.35
3.35% for checks and 3.35 3-16@3.3534 for cables. Commercial
on banks.
sight, 3.3434 @3.351i; 60 days, 3.3434@3.34'4: 90 days,
3.3434(3)3.343.4;
and documents for payment, 60 days,.5.35@3.253-4. Cotton
for payment,
3.354.
To-day's (Friday's) actual rates for Paris bankers' francs
were 3.9013)
3.9034 for short, Amsterdam bankers' guilders were 40.17.
Exchange for Paris on London, 86.04; week's range, 86.04 francs high
and 85.75 francs low.
The week's range for exchange rates follows:
Sterling, Actual—
Checks.
Cables.
High for the week
3.357,4
3.36
Low for the week
3.3434
3.3434
Paris Bankers' Franc—
High for the week
3.90 7-16
3.90
Low for the week
3.90
3.90.5i
Germany Bankers' Marks—
High for the week
23.77
23.7834
Low for the week
23.73
23.75
Amsterdam Bankers' Guilders—
High for the week
40.1714
40.18
Low for the week
40.12
40.15

The Curb Exchange.—The review of the Curb Exchange is
given this week on page 446.
A complete record of Curb Exchange transactions for the
week will be found on page 473.
CURRENT

NOTICES.

—John J. Quinn, Assistant Secretary of the Perth Amboy Trust Co.,
Perth Amboy, N. J., announces the appointment of John Donovan,
Advertising Manager of the Central Hanover Bank & Trust Co., and
Miss Julia A. Glenn of the Greenpoint Savings Bank, Brooklyn,
as the
New York members of the Extension Committee of the Financial
Advertisers Association, The Committee will hold its first meeting
Feb. 11,
in the Waldorf Astoria. In addition to Mr. Quinn, Chairman,
Mr. Donovan and Miss Glenn, the Committee includes R. It. Booth Jr.
and Charles
W. Earle of Boston; George 0. Everett, Utica; Littleton Fitzgerald
Jr.,
Richmond; A. R. Gruenwald, Milwaukee; S. F. Joor Jr., Syracuse; Henry
C. Ochs, Dayton; John II. Rooks, Detroit; John H. Wells, Providence,
and George Wilshire, New Haven. The Extension Committee prepares
and submits recommendations for the consideration of the board of
directors of the F. A. A.
—The investment house of Lord, Westerfield & Co., Inc., has changed
Rename to Lord, Abbett & Co., Inc., and moved to 63 Wall St., New York.
—Frank C. Masterson & Co. have prepared for distribution their quarterly booklet containing quotations on inactive securities.
—James Talcott, Inc., has been appointed factor for the Artificial°
Seta Co., Inc., New York City, distributors of rayons.
—Tate & Hays, New York. have Issued a comparative analysis of New
York City banks and trust companies.
—J. K. Rico Jr. & Co., New York, have issued an analysis showing
year-end bank stock earnings.

457

Report of Stock Sales-New York Stock Exchange
DAILY, WEEKLY AND YEARLY
Occupying Altogether Eight Pages-Page One
r4.3
" FOR SALES DURING THE WEEK OF STOCKS NOT RECORDED IN THIS LIST, SEE PAGE PRECEDING.

HIGH AND LOW SALE PRICES-PER SHARE, NOT PER CENT.
Saturday
Jan. 14.

Monday
Jan. 16.

S per share
4212 4334
*644 67
*2012 2138
1018 103*
1214 1214
24
24
*71
7413
*9
10
*37
478
*46
497
2812 2914
7618 7618
*18
N
1358 1334
*50
55
27
27%
*14
I%
*118
112
27
27
*712 818
2
2
Vi 3
4% 47
*818 834
*4
412
*7
712
*6
7
*1134 25
*138 2
55
55
2412 2514
*213 312
*6
638
*634 718
*438 47
934 10
*218 4
*334 43i
*1434 1512
1338 1334
*514 8
*45
434
*814 834
*14
1434
1312 1312
2514 2558
1514 1514
7
738
*238 418
*18
38
*1
17,
634 634
1412 1518
*312 334
58 578
*13
14
19
1912
35g
31%
414 414
*108 120
151% 1618
*2712 30
838 85,
*38
12
114
*73
11912 11912
*82
8212
1578 1678
*11g
2
17% 1758
*114 212
*534 7
*8
1012
73
734
*7
111,
3112
*30
31
31
28
*24
*1
118
158
158
714
*3
*__29
;r4
N
*12
34
18,8 18%
512 57
*7
8
3734
*16
*512 6
*114 234
*712 1234
7414 7538
*6612 67
*I% 214
212 212
534 534
*412 9
•134 2
3
3

$ per share
418 4414
6538 6578
20
2014
912 1014
11
1213
*2213 25
*71
7412
*914 14
414 414
*4112 5118
2778 3018
7612 78
12
12
13
138
*50
55
2612 2712
*II
158
118
118
27
278
7
712
2
218
234 234
413 478
8
818
43
412

$ per share S per share
4118 4212 4034 4278
63
6312 6312 63
20
20
20
2014
018 934
913
9
1012 1138 1013 1138
2312 2313
*2214 24
7412
7412 *72
*72
*914 12
*914 10
*312 478 *313 478
*43
4718 4518 4518
2738 2812 2714 2878
7614 7738
7612 77
12
12
*12
34
13
1314
13
1318
55
*50
*50
55
2614 268 27
2738
*14
158
I%
*14
78
78
*78
1
234 234
238 25
7
714
7
7
134
134
134
134
25
234
238 25,
414 412
414 413
612 7
712 712
37
4
418
4

7
7
*513 614
*10
25
134
131
5114 55
23
2512
212 212
538 638
612 634
*43
5
1014
9
*21
4
*314 434
15
1514
1258 14
8
*6
434 514
814 814
*13
1434
13
1378
2338 2534
1514 1514
718
73
*25g 478
•i,
38
*1
178
612 7
1434 1514
*313 35,
5
58
*18
14
177 1938
*313 334
4
414
107 108
1434 1614
28
28
812 9
*38
12
78
78
119 120
*82
8212
14
1618
118
114
1638 18
*114
212
*512 13
8
8
712 712
*614 111,
29
29
*2812 3212
*2414 28
114
138
134
134
*312 714
*5
29
*14
38
*12
34
1718 1878
51.2 578
7% 714
*16
40
6
614
*133 231
*712 1231
7258 7612
6612 67
2
2
233 238
513 55,
*434 9
2
2
3
3

6
6
612
618 618 *6
*6% 612
7
514 514 *511
514 514
*514 614
25
*10
*10
25
25
*10
25
*10
*138 2
*114
2
*138 2
*133 2
5312
5012 51
4912 5112 50
51
52
2388 25
2438 258
2314 2412 233 25
*238 278
212 212 *238 4
*212 312
512 512
518 518 *518 58 *514 6
7
6
612 *6
*6
612
*438 434 *432 5
*418 434 .418 434
912 1014
878
934
812 958
834 934
37
*112 38
*114
2
2
*218 4
*314 48 *314 4% *314 4% •314 47
1512
*14
1512 147g 1478 1514 1514 *15
1214 13
123 1312 1278 1314 1314 1378
*6
7
*6
7
*6
7
*6
7
413 434 *438 434
412 434
45, 5
818 814 *814 834
818 814
858 858
137 138
13
13
*1234 14
*13
137
1212 1314
1 112 1178
12
12
12
1218
2412 2534
23
2334 2212 2413 2278 25
1512 1512 *1514 1878
*1514 19
*1514 19
712
7%
7
712
7
712
7% 712
*258 478 •258 478 *258 47
*Vs 47
*is
38
28
38
*18
a,
*is
88
178 *1
*1
178 *1
178 *1
178
612 634
614 612
634 7
612 634
1414
1334 1414 14
1478
14
1412 14
25, 318
318 312
214 314
234 3
514
47
5
414 518
414 514
516
*18
14
*18
14
*18
14
*18
14
177 1838 1718 1858 1718 1858 18
1914
*3
358
338
3
314 *27s
37g *3
314
338 *352 4
314 334
4
4
107 107
10834 10834 *108 109
109 109
1538 1414 1512 15
1413 1512 14
1534
27
27 .26
28
27
27
2712 28
85, 858
814 8%
8% 911
9,4
914
*38
12
•18
*38
12
12
38
38
*34
78
34
31
34
34
*N
34
11814 11812 11812 11812 119 119 *12013 12234
8112 8112 *80
7912 82
8112
8112 *80
1334 1458 1338 1412 14
14%
1412 1538
*118 2
118
118 *1
118
1 18 *1
1638 1733 1658 1734
1634 1734 1712 1814
114
114 *1
*1
2
2
*I
2
*558 13
*534 13
.51g 13
*5% 13
612 778
7
7
7
7
7
77s
67
7
713
6%
634 678 *558 734
*614 1 118
*614 10
*614 11', .614 11',
*28
2834 2834 2834 28
2812 2812
28
*2812 31
*2812 31
*2812 31
*2813 31
*2414 2734 *25
*2414 28
273 *25
2734
Ils
118 *118
114
*118
112
112 *118
178
134
178
178
134
158
178
158
*3
7
*3
11
*3
11
*3
11
29 *___
*5
29 *___
29 *_
29
*14
38
*14
38
i
44
-;
38
N
*1*12
31
*12
34
*12
34
*12
34
168 1712 1613 1778 167 1734 1712 1812
5
512
5% 534
5% 512
514 534
738 712
7
7
634 714
*634 71s
25
3978 *16
*16
25
*16
397 *16
613 612 *538 614
618
6
61 4
*6
234 *138 234 *158 2 4
I%
138
..13
7
7
122
4
*7
1234
718
712 e7
7238 7414 7138 7434 724 7438 7334 7534
6658 6634 *6634 6814 *6634 6818
*6658 67
*17g
2
•178 2
*178 2
*17
2
*21g
3
3
214
212 .2
3
*214
514
514
514
514
512 6
518 518
*458 10
.414
9
*4
9
*418 9
*113 2
113
134 *112 2
*134 2
3
3
*278 3
3
3
234 24

Tuesday
Jan. 17.

Wednesday
Jan. 18.

1513
*1513 18
*1512 18
18
*80
89
*81% 89 .80
89
412
412 434
434 478
5
5318
53
6912 53
7013 *53
*1212
1312
x13
14
1418 14
9
834 834 *812 9
914
2
2
214
212
213 *214
958 958 x912
933 634
10
593
6214 6012 6258 6014 61
118 *I
1 18
114
1,4 *I%
1112 11144 1138 1112 1158 1112
112 .114
112 *114
118 *118
114
114
114
13
114
18
25
21s
253 *212 258
278
213
*212 3
*213 3
3
234 *134 212 *134
21- *134
•1116 and asked unreel no sales oil this day.

*1512
*8114
47
•53
14
914
*2
10
62
•1
1112
112
114
258
*212
219




1512
89
458
5318
1334
0
2
912
61
114
1158
2
114
2f2
212
212

Thursday
Jan. 19.
$ per share
410s 428
*6234 63
20,4 2012
914 034
11
1112
*22% 2312
.72
7412
*914 10
*313 438
*40
5118
27% 2814
75
75
34
*12
1278 1318
.50
55
2714 2818
*14
158
78
78
*234 278
7
714
14 2
*212 234
414 48
.634 714
334 37

.1434
*80
412
*53Ig
*1212
9
*2
*912
5938
*1
1112
*114
118
212
*214
*134

18
89
458
58
131
9
214
934
8112
114
1218
11
114
212
21
212

Friday
Jan. 20.

Sales
for
the
Week.

STOCKS
NEW YORK STOCK
EXCHANGE.

PER SHARE
Range for Year 1932
On basis of 100-share lots.
Lowest

Par $ per share
Railroads
Atch Topeka & Santa Fe__ 100 17%June 28
100 35 July 9
Preferred
934May 26
Atlantic Coast Line ER-.100
334June I
100
Baltimore & Ohio
6 June 3
100
Preferred
912June 2
50
Bangor & Aroostook
100 50 June I
Preferred
4 July 13
100
Boston & Maine
278July 8
Brooklyn & Queens Tr.Ne par
Preferred---------No
Preferred ____ ___No par 23I4June 28
_ _No par 1118June 8
Bklyn manh
46 preferred series A_No par 3113June 8
12 Apr 13
Brunswick Ter & Ry SeoNo Par
714May 31
25
Canadian Pacific
Caro Clinch & Ohio stpd 100 39 July 26
934July 8
25
Chesapeake & Ohio
13 July 15
Chic de East III Ry Co _ _ _100
12MaY 12
6% preferred
100
2
1I4June
100
Chicago Great Westero
2I281ay 25
100
Preferred
%June 1
Chic Milw St P Sz Pao_ _No par
118May 26
Preferred
100
2 May 31
Chicago & North Western_ 100
4 Dec 22
Preferred
100
112May 25
Chicago Rock Is, de Paeific_100
7% preferred
700
314 Dec 29
100
2 May 25
6% preferred
100
300
412June 29
Colorado & Southern
100
100 Consul RR of Cuba pref_100
1 Dec 29
3,000 Delaware & Hudson
100 32 July 8
812June 1
26,200 Delaware Lack & Western_50
200 Deny & Rio Or West pref.. _ 100
112May 28
2 May 31
600 Erie
100
First preferred
400
258May 19
100
2 May 25
Second preferred
100
16,700 Great Northern pref__ __ _100
5121‘1ay 28
2 May 3
200 Gulf Mobile & Northern...100
213 Dec 23
Preferred
100
500 Hudson & Manhattan
8 May 31
100
4%June 1
11,800 Illinois Central
100
RR Sec ctn. aeries A_ _ _1000
4 May 5
6,100 Interboro Rapid Tran v t e_100
214June 10
900 Kansan City Southern
2I4June 1
100
200
5 June 9
Preferred
100
2,100 Lehigh Vallee
5 June 8
50
5,900 Louisville & Nashville ____100
712May 26
40 Manhattan Ry 7% guar_ _ _ 100
9 Sept 17
13,200 alanti Ry Co mod 5% guar.100
4 June 8
218 Dec 17
Market St Ry prior prat_ _100
% Jan 12
100 Minneapolis & St Louie__ 100
Minn St Paul & SS Marie_ 100
12 Dee 21
2,100 Mo-Kan-Texas RA____Ne par
114MaY 26
314June 1
11,500
Preferred eerie, A
100
112May 25
100
3,400 Missouri Pacific
212May 26
Cony preferred
12,400
100
% Feb 9
Nat Rys of Mexico 26 pref _100
834June 2
100
51,125 New York Central
112515y 18
100
400 NY Chic & St Louts Co
2 June 2
1,200
Preferred melee A
100
90 N Y & Harlem
50 821451ay 18
6 May 26
100
12,400 N Y N H & Hartford
Cony preferred
800
100 117.July 6
358July 12
3,800 N Y Ontario As Western_ _.100
18 Dec 12
100 N Y Railways prer____No par
14 Dec 20
100
300 Norfolk Southern
100 57 June 27
700 Norfolk & western
100 115 July 5
150
Preferred
512Ma7 26
100
11,000 Northern Pacific
1 Nfar 17
100
100 Pacific Coast.
612June 1
50
72,900, Pennsylvania
100
78May 27
1001 Peoria & Eastern
134June 30
100
Pere Marquette
3I2June 2
100
Prior preferred
1,030
212June 1
100
410
Preferred
fi Dee 23
Pittsburgh & West Virglnia 100
912June 10
50
700 Reading
let preferred
200
60 15 July 11
26 preferred
60 15 May 2
501ay 28
5,500 St Louis-San Francisco__ 100
1 May 2
2,500
lot preferred
100
3 May 21
St Louis South westena-__ _ 100
Preferred
100
838 Dec 28
18 Jan 2
Seaboard Air Line
No par
14 Jan 4
Preferred
100
46,800 Southern Pacific Co
612June 1
100
212Niay 16
4,800 Southern Railway
100
1,200
Preferred
3 July 1
100
Texas & Pacific
100 13 Nov 30
3.500 Third Avenue
372May 28
100
100 Twin City Rapid Transit 100
118 Dec 29
330
Preferred
7 June 16
100
33,400 Union Pacific
100 2758July 11
500
Preferred
100 40 May 31
200 Wabash
%June 2
100
500
Preferred A
1 June 1
100
1,200 Western Maryland
112May
28
100
26 preferred
2 May 26
100
300 Western Patine
12June 9
100
Preferred
700
34May 31
100

S per share Shares.
4218 437 40,000
800
635
63
21
2278 1,700
11,200
912 10
1114 1158 3,900
2313 2313
300
*72
7412
100
*1012 1012
*312 414
200
*44
5118
100
2712 2814 51,300
2,900
76
77
900
*12
34
1314 1338 17,400
*50
55
2734 2814 47,400
,
*14
15
*1
114
500
*234 278
400
738
738 1,200
I% 134 1,000
24 273 1,600
438 514 13,000
*Us 8
900
*4
414 1,500

*1434
*80
458
*531g
*1212
9
*2
934
6012
1%
1134
*114
I%
258
*214
*2

18
89
434
58
1378
9
212
934
6112
114
1214
113
114
234
234
212

s Ex-dividend. p Ex-rights.

Industrial & Sllecellasteou
100 Abraham & Straw;
No par
Preferred
100
8,700 Adams Express
Ns par
Preferred
20
100
900 Adams Mills
No par
500 Address Multlgr Corp No pa
No pa
1,100 Advance RumelY
900 Affiliated Products Inc_No pa
No par
8,300 Air Reduction Ina
200 Air Way Elee Appliance No par
8,900 Alaska Juneau Gold Mtn- 10
No par
100 A P W Paper Co
No par
5,100 Allegheny Corp
Pref A with $30 warr_ ___ 100
1,000
100
Pref A with 240 wart__ 100
Peet A without warr____100
100

10 June 1
68 July 1
IhMay 31
22 June 24
12 June 1
812 Dec 29
114June 8
4I4May 26
30% July 1
12.june 6
Patine 9
s Dec 29
1.8M ay 31
34May 31
5,-June 3
mune 11

Highest

PER SHARE
Range for Previous
Year 1931
Lowest

Highest

3 per share $ per share $ per share
7914 Dec 2033 Feb
94 Jan 14
86 Jan 18 z75 Dec 10814 Apr
Jan
25 Dec 120
44 Sept 2
14 Dec 87% Feb
2138 Jan 21
25 Dec 801! Feb
4112 Jan 14
18 Dec 8834 Feb
355 Aug 29
80 Dec 11312 Mar
91 Sept 13
10 Dec 86 Feb
193413ept 2
612 Oct 1338 June
1014 Mar /I
46 Dec 8434 June
58 Mar 5
31 1 Oct 6938 Mar
5014 Mar 8
63 Dec 9414 Feb
7838 Mar 8
912 Feb
1% Dec
2% Aug 11
10% Dec 4538 Feb
2058Mar 5
72 Dec 102 Apr
70 Feb 6
2338 Dec 4613 Feb
8112 Jan 14
12 Dee
12 Dec
334 Aug 29
12 Dec
113 Dec
5 Aug 25
7% Feb
212 Dec
538 Aug 29
712 Dec 2712 July
1512 Jan 22
8% Jan
112 Dec
413 Aug 25
212 Dec 1518 Feb
8 Aug 25
5 Dec 4512 Feb
1412 Aug 25
1312 Dec 116 Mar
31 Jan 22
7% Dec 8512 Jan
1638 Jan 22
14 Dec 101 Mar
2712 Jan 14
Jan
1018 Dec 90
2412 Jan