Full text of Commercial and Financial Chronicle : January 22, 1942, Vol. 155, No. 4036, Section 2

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In 2 Sections

THURSDAY

Final Edition

-

Section 2

IV 1

■■

v

,-Reg. U. S. Pat.

Volume 155

New

Number 4036

Office/

Price 60 Cents

York, N. Y., Thursday, January 22, 1942

a

Copy

GENERAL CONTENTS
Editorials

';:-:•!;«?■>('.-i•?

'

On The Foreigh Front

Page

THE FINANCIAL SITUATION

Money as A Standard for Deferred
Paymentj
330
Reciprocal Tax Immunity........... 330
The Simple Truth.,
329

/

"""1

.

:

:

\•

.

Regular Features'

European Stock Markets

Financial

has been the rule in recent sessions on the Lon¬
don securities markets, with the tone dull.
The reverses in Malaya
have depressed some areas of the great British market and have
occasioned
caution
throughout.
Fears of inflationary develop¬
ments have modified, moreover, and interest in equities has less¬
ened in consequence.
The mood of the London market for the last
week
rather resembles
the
ap-^
parent resignation so long noted after he began his epochal jour¬
Modest trading

here

New York.

in

During
week

little

a

latter

the

to Washington for conferences
on
war
strategy and production
with
President
Roosevelt.
The

ney

half

last

of

devel¬

nervousness

.

and similar British war leader was greeted
issues
at
London.
Gilt-edged heartily by his countrymen, de¬
stocks were relatively firm, and spite
popular doubts about the
industrials lost only small frac¬ grand strategy being pursued with
tions.
After a firm opening on respect
to
the
European and
A restlessness
Monday, the British market ex¬ Asiatic conflicts.

oped

in

tin,

fresh

perienced
week.

pick

rubber

declines

'

this

Bargain hunters began to
tin and rubber shares, but

up

quite comparable to that in the
United States prevails at present
in

owing to the gains
the Japanese member of

England,

oil issues turned quite soft. Latin-

made by

American securities lost their ap¬

the Axis.

peal when the Rio conference re¬

gloomy, Tuesday.
Markets in
unoccupied France
were
firm
in
recent
trading.
turned

ports

Rentes

in

■■■"J
i
•

nalized by a public

reached
for

obligations.
Adequate re¬
ports remain lacking of the mar¬
kets in Axis and occupied por¬
tions of Europe.

effect that

the

to

complete

1

a

and

statement

been

News
Items

Bond

Prices

Foreign Front. ,.,-.
Washington Ahead of
v.."......:./..,......".

About

Banks

Companies

operations.

General

Review

Indexes

................340, 346, 349
Prices—World Index... 343

Commodity
Petroleum
Iron

and Its Products...,.,...

Operations—
Weekly Review.
348
Weekly Electiic Output.. 349
Bank Debits

346

Carloadings
Weekly Papcrboard Statistics.......
Weekly Coal and Coke Statistics...
Weekly Lumber Movement.;........

344

November

.....

-

Factories

Mr.

Churchill

Crude

344
349
350

Retail

347

Prices

December

in

Commercial

men,

for some reason or another,

have

never

gone

to

officials

that

reporter,

beyond
"delved"

speak, and

arrangements

the

far that the slate of
the

for

joint

labor

en¬

terprise had been agreed upon—
whereby George Meany of the
AFL
building trades would be
President

of

the

new

set-up,, at

$20,000 a year, and Phil Murray;
head

of the

CIO, would be Sec¬

retary-Treasurer
year,

Bill

and

at

$18,000

Green,

written

the

dramatic

story at its

full face

cope.

might be called amaz¬

so

Louis

Chase

a

value, are now laughing
about what happened when they
called

up

this

Pearl,

the

man

licity

Phil
for

Green.

In

funny

that

man

"It's

and

effect

said:

Lewis
don't

excited every time
makes

statement

a

get

excited

gentleman

tribulations

when Bill

ever

has

had

since

Early of the White House

hif

Steve
secre¬

tariat, got him his job with Bill
Green several years ago. He was
formerly a Hearst man and had
been

present

covering the

(Continued

on

White
page

House.

335)

supply temporary binders in which to file current issues of
form. These will facilitate

the Financial Chronicle in its new

of the Chronicle and will protect copies against mutila¬

The cost is $2.50 plus postage for each of these

binders which have been
of the Financial
to

designed to hold

one

month's issues

Chronicle. Orders, for binders should be

"Expandit" Binder, 25 Spruce Street, New York City.




sent

338
341

Bank

Bank

341

,

Trust

Corn

.342

i.

Trust

Wheat

339

Co...,

Loans.;.*

337

337

Loansy;.

Leaves

Metropolitan Life.,.. 337
Confiscation;:; ■. :~.T.::77337

in Thrift J,,.

Landis

338

OCD..v., v..

with

......

,

338

S. Munitions Output

Large U.

338

Demanded

Chicago Mercantile Exch. Governors 338
SEC Form For Unit Trusts

338

N. Y. Reserve Bank Promotions

no

more

This

henceforth.

war

of what has

now

by stage management, nor by clever use
become commonly known as "propaganda"

"publicity stunts." If labor leaders like Mr. Lewis wish
to promote labor peace, let them take off their coats and
go to work for the cause, meanwhile forgetting about the
galleries. If Senatorial committees desire to serve the cause
by constructive criticism, let them inform themselves about
the subjects under stricture and confine their conclusions
to those which the facts warrant—and be ready to supply
evidence to support their allegations. If we wish to indulge
in self-gratulation over the abundance of our resources and
the record of our industrial achievement, let us do so, but
or

let

not

resources, however abundant, will not
skilfully and vigorously employed for
that purpose—and, further, let us at all times bear in mind
that we have yet to demonstrate our ability to do precisely
that, no matter what we may have accomplished in the
us

win the

forget that
unless

war

of peace.

arts

Above all let us,

each and every one, be certain when
applaud, not to say demand, heroic action from the
Government at Washington that we oursplves are quite
ready to have it do ivhat is demanded oflt, and that we
stand prepared so to shape our individual courses as to
promote its achievement.
The people of this country—
not only the arn^y and the navy, but the people—were not
by a wide margin prepared for "total war" when Pearl
Harbor was attacked. To be sure, we were crying out for

338

all

of

manner

measures

bring war—yet

short of

were

we

war

but almost certain to

still clinging tenaciously to the

we could do all this and yet remain at peace,
obliged to go to war we should not be obliged to enter
very vigorously or extensively into the contest. To be sure,
we
enthusiastically, even bombastically, enlisted as the
arsenal of democracy, but there was little or nothing to

delusion, that
or

if

.

(Continued

Eccles

Against Local Tax Reduc¬
tions, Tax Exemptsv............ 339
Defense Bond Sales Up, Savings
Deposits Down
....
339

page

on

332)

.

339

Grain Sales Price

Hold.-Company

Amends

SEC

Form 339

Lamont For Red Cross Driye.

Transactionsin

Market

...

The

339

Govern¬
340

ments

Ship Labor Disputes Board:.,
N. Y. Community. Trust Grants
Lend-Lease
to Uruguay
Federal

For

Ransom

Dollar Acceptances
Dec. 31

Reserve

341
341
341

Board 341

Outstanding,

to

The
come

obvious

maintained.

342

342
343
343

Stock .Exchange.........

343

London

New

to

and

Schram Assails

.

Private

Financing
Finance
Private

Alien

344

Demands. Record Farm

Output
More

343

Capital Gains Tax... 344

Curb Seat Retirement...;,;-.,.......

Wickard

Defense

346

Housing

Red Cross Quota.. 335
Procedure.352

Owned Materials..............

Liability

us

that

the

of

up,

goes

inflation.

standard

of

It

living

is a falla¬
should be
cannot

be

*

*

If this

war

is

going to be fought

on

a

basis of what

we are

we are

going to put into
the only interest

going to lose it. So long as
problem of production is to get greater wages,
long as the only interest that business has in it is to
get greater profits, and the only interest the farmer has is
how he is going to get higher prices for his product, then we
have many tears and much blood to shed.—Marriner S. Eccles.
it, then

we

are

labor has in the
and

so

352

on

Many times in the past

have felt ourselves obliged to

we

disagree with Mr, Eccles, but in this instance
that he speaks the unvarnished truth.

we

certain

are

Shipments

Quotation Company
Szvmczak

of

*

problem

going to get out of it instead of what

Section

Forged Checks... 352
.............
351
Farm Product Prices.........
351
Bank

the

to

335

Urged.......;.,

Claims

all

to

and income, agricultural in¬

wages

the cost of living index

342

Zealand............
Speculation
Corn Loan Repayments.... ....
English Financial Markets..........
Winton

as

approach

341

,

Cotton Loans.......v...........

1941

included,

cious

Simple Truth

idea of increasing

341

Turkey

Sales..

Auction

Pennsylvania Factory Employment..
Old-Age Insurance Coverage.;
Lower Exemptions, Withholding Tax
Urged ;..
CCC Cotton Sales Conditions
A Post-War' Program
..
NASD Membership Maintained......
U. S.-Mexico Defense Board.
...

Arrangements have been made with the "Expandit" Binder

use

National

National

337
337

...........

Exchange Bank-Trust Co.... 342

Controls

Green makes one."

This

Bank.

.

you

Of Our Subscribers

tion and loss.

351

Trust Co.„.........

City Bank

Steinhardt

mighty

fellows get so
John

pub¬

Binders For The Convenience

the

346

Bank....340

Reserve

National

Lease-Lend

to

346

won

we

Ecker

proposed a joining of the CIO and the AFL, his publicity

"learned"

333

Miscellaneous

1941

staff, the most competent in Washington, had circulated among the
Washington newspapermen, with the word that a terrific "blast
was coming from Lewis at a cer-<^
tain
time.
It was
a
beautiful' head of the AFL, would be re¬
build
up
and something with tired at $20,000 a year.
Other
which the industrialists' publicity
newspapermen,
having

had

...

Papers Outstanding

Brooklyn

internationally important,
that must have, indeed, made Hitler
shake in his shoes—emanated from John L. Lewis to the effect that

He

Sales

Company Statistics.... 330
Actual Cotton Spindles
351
1941 - Construction
.'....... 351

Bankers

Several hours before the tremendous,

statement.

Store

October Gas

Manufacturers

-

world shaking document—one

the subject, so to

December..

Chain

Education

into

342

Output.......
Retail Food Price Changes...,.
Reserve Banks Repo.t on Business
Freight Cars on Order..

No, Savings

Lewis'

Oil Output........

November Natural Gas

St.

his

and

(Continued on page 334)

AHEAD Or THE NEWS

went

341

j..,..-...

November

1941

enterprise,

330

Auto Financing
340
Living Costs.............. 340
December Cotton Consumption...... 340
Employment Payrolls in N. Y. State

Odd-Lot Trading.,,....,.,.... 340
Trading on N. Y. Exchanges......:. 343
Bank Earnings: •.

FROM WASHINGTON

ing

342

345

December

Corn

New York "Times"

352

Steel

and

Grace

A

331

Commodity Prices—Domestic

;

NYSE

while

ardently to be hoped that the silly season
prevailed in many quarters ever since
Pearl Harbor will very soon come to an end. Various groups
which have seized what they appeared to regard as golden
opportunities to strut and fret their hour upon the stage
to have

would do well to be heard

em-

heard

was

most

seems

will not be

Commercial

with what

336

It is

which

State of Trade

National

able

329

Trust

.............

'

merely

discord

of

hint

day, somewhat more than a month

been

329

.

the

r

phasized the obvious, for no

^

ill returned to London last Satur¬

had

and

346

Canadian Business Index...

mil-

>.

London

Prime Minister Winston Church¬

he

Yields...

and

...

planning

future

naval

and

!

joint

on

present

itary

statement

had

understanding

This

\

Churchill In

>

Churchill in London was sig-

rate

good

in

-

Washington the arrival of Mr.

demand on
soft money rates, and there is talk
of extensive refunding of corpo¬
are

House

White

the

At

From

.-.A329

Situation..; •;

Moody's
On the

332

or

349

349
350
350

'
348

Etc.

are

utmost

Elects.......... 350

Demands Price Fixing,

We

351
351

Fxport Freight Petmit Plan...
331
Society and Civilian Population 333
NYSE Asks Blood Donors.
347
Insolvent National Bank Dividends 347

the past,
to

the

further

urgency.

and in

convinced that his

one

of the

than one case at present, to understand
simple truths that underlies some of
difficulties of the days.

more

appreciate these

most

serious

Mr. Eccles would,
among

the

is

message

It is the failure of the American people in

we

imagine, readily

agree,

moreover,

that

those who need to come to grips with the realities of
are
Tom, Dick and Harry in their capacity as

situation

consumers.

Free

Cost of Living in

December..;.,

Copper Statistics
December

5 & 10-Cent Store Sales..

Items About Banks, Trust Cos

Changes

347
347

Nelsoh War Production Uhief.

can

not

do

without

war.

We must win this

war,

paying the price, each of

daily living.

347
336

in Holdings of Reacquired

Stock

We want to win this
we

345

345

It is time that truth dawned

fully

upon us

all.

but that

us,

in

our

THE COMMERCIAL &

330

Thursday, January 22, 1942

FINANCIAL CHRONICLE
Editorial-

Editorial-

r

Lumber Movement

Week Ended Jan. 10, 1942

r

production during the
ended Jan. 10, 1942, was

Lumber

week

/Signs are multiplying that another test soon will be
previous
5% made of the reciprocal tax immunityc of Federal and State
business 5% less, ac¬ instrumentalities, which the Administration in Washington
.

32%

the

than

greater

Money As A Standard
For Deferred/Payments!

holiday week, shipments were
greater; new

National

cording to reports to the

Associa¬

Manufacturers

Lumber

desires

subject State and local government securities to Federal
In the heated arguments of the last few relating to current exchanges, which require facilitation
weeks hardly a reference has been made to the question (1) by recourse to a monetary unit capable of serving as a
common denominator of values in exchange and (2) as the
of method involved in this long-standing dispute.
If • so-

income taxation.

exemption is to end; however, tnen the sovereign

called tax

right of freedom from taxation by the central government
should be surrendered by the States only under agreement,
which is to say

by way of a Constitutional Amendment. opened the latest phase of this

President Roosevelt

of;Jan. 7,{'"It seems right and
tax-exempt bonds should be issued,"

battle in his budget message

1935-39

of average

129%

and

39

V: Experts in monetary science commonly agree that the
and necessary functions of sound money are
fourfold.
In their view these functions begin with those

simple assertion of power legitimate

to

associations
covering the operations of repre¬
sentative hardwood and softwood
mills.
Shipments were 9% above
^production; new orders 25% above
: production.
Compared with the
corresponding week of 1941 pro¬
duction'' was 14% less, shipments
15% less, and new business 0.5%
less.
The industry stood at 129%
of the average of production in
the corresponding week of 1925regional

from

tion

terminate through a

to

just that no further

shipments in the same week.

the President said in

this document, and he expressed the

^Supply and Demand Comparisons

''personal belief" that income from outstanding state and
local government bonds is taxable under the Income Tax
Jan. 10, Amendment to the Constitution,, As in his special mess-,

basis of

a

sound currency

generally acceptable as a medium

payment in. commercial transactions.
-Satisfactorily
performed,; these concurrent functions contribute vastly to
the efficiency of the economic organization of society, sim¬
plifying the processes of production and exchange, increas¬
ing the productivity of labor and capital by facilitating di¬
vision or labor with specialization and localization of pro¬
ductive functions, and by eliminating necessity for resort
to the cumbersome and inadequate processes of barter.

of

:■

-i

must do more than that.
It
supply a tolerably stable' standard for deferred
payments and (4) be capaole of serving acceptably as a
ages of April 23, 1938 and Jan. 19, 1939, Mr. Roosevelt once means/for the
storage of values providently accumulated
again recommended legislation to tax all future issues of
against requirements and demands certainly or contingently
this character.
The previous recommendations, it may be
accruing or likely to accrue in the future.
:
Softwoods and Hardwoods
added, failed utterly to further the Presidential conten¬
Agreements calling for deferred or future payments
Record
for
the current week tions.
They led to investigations which established, be¬ are:
.naturally and usually written in terms of the:, local
ended Jan. 10, 1942j for the corre¬
yond any question, that this is a much overrated financial monetary unit of value.
Hence, in the United States, de¬
sponding week a year ago, and for
issue, but a very delicate and significant political Issue.
J mand and promissory notes, time: certificates of deposit,
,the previous week, follows in
thousand board feet:
The political aspect vastly overshadows the financial drafts .and acceptances, individual and corporate bonds,
Softwoods and Hardwoods
aspect because it goes straight to the heart of our peculiar life insurance and other insurance contracts, contracts for
orders to

of unfilled

ratio

The

stocks was 40% on
; 1942,
compared with 31% a year
iago.
Unfilled orders were 20%
greater than a year ago; gross
'stocks were 8% less.
gross

But

a

must

sound monetary system

;(3)

*

.

,

1

1941

-

1942

1941

Week

'

447

192,866

'■

(rev.)

Wk.

223,838

__

210,969

247,936

146,067
201,230

-i._i.lii

241,349

242.548

253,399.

Production

__

Shipments
Orders

Hardwoods

Softwoods

system of dual government.
Nothing is clearer life and term annuities, the preference provisions of , pre¬
jurisprudence than the immunity ,of a sovereign from ferred stocks, and the paper evidences of private and public
taxation by another sovereign. ; In our own system the indebtedness, are, almost absolutely without - exception,
States, as untrammeled entities, granted to they . Federal Written in 'terms of dollars and multiples of dollars.
Government specific powers and reserved to themselves
^
The Dollar Is What The Congress Says It Is
or to
the people the powers not so specifically granted.
But what is the dollar?
Before 1933, the dollar of
Every test before the Supreme Court,'without a single ex¬
the United States was statutorily defined as 25.8 troy
ception, has sustained since the beginning the immunity
grains of nine-tenths fine gold.
By Presidential decree,
of each governmental entity from taxation by the* other,
or
proclamation, promulgated under legislative authority
where such taxation touched the underlying ^concept of
accorded by a statute of Congress, the statutory definition
sovereignty. ///\ ;/
.7;., //
*//%:/•'/:.4 was superseded s'oon after President Roosevelt's first'In¬
Thus it is that this question of state and city bond im¬
auguration and the fine gold content reduced two-fifths to
munity from taxation by the; Federal Government runs 15.0/21
grains.
Moreover, President Roosevelt obtained
to the foundation of our system of divided and delegated
from .Congress additional authority, which he still retains,
powers.
Up to the time of the Civil War it was the Fed¬ further to diminish the gold value of the nominal monetary
eral Government that was overshadowed by the States and
unit to any amount not less than 12.9 grains, so that, as the
had to defend itself before the Supreme Court from sub¬
law now stands, an additional degradatioh equivalent to
mergence by the several States./ After that conflict ended
15.34%, or nearly one-sixth, of the present reduced value
the trend turned the other way, and the States have been1
can stilkbe achieved whenever the Chief Executive so de¬
defended time and time again from the steadily growing
termines.
Repeatedly, efforts have been made by leaders
power of the Federal Government and the efforts at Wash¬ rin Congress and outside of Congress, to withdraw this ex¬
ington to curtail, if not discontinue, the sovereign rights treme delegation of legislative authority to the President.
of the States: ; ///.^/? ///; % //;. /
// .• ■
As frequently as these efforts have been made they have
But all of this has been ignored in the renewed con¬ been combatted with
every power of persuasion and coercion
troversy over the matter, which bids fair to continue in¬ which the White House can bring to bear upon Congress¬
definitely and to become ever more acute as Federal tax¬ men and Senators, and invariably the consequence has been
ation increases.]
Federal spokesmen invariably endeavor the renewal or ..extension of this abnormal authority over
to limit the issue to a "matter of equity," and
phrases the basis of the monetary system of the Nation. That is
loaded with moral connotations, such as "right and just,"
by rio means all that has happened to undermine the Ameri¬
flow readily from the pens of the Federal advocates.
can dollar and to destroy it as a standard for deferred pay¬
Marriner S. Eccles, Chairman of the Board of Gov¬ ments and as a store of values against accruing demands
in

443

447

Mills

American

Previous

Week

•

;

368

;

1942 Week

'

1942'Week
Mills

93 '

;

,

10,255—100%:

Production

182,611—100%

Shipments

:

201,011—110%

9,958— 97%

231,042—127%

10,307—101%

Orders

Chain Store Sales Index
The chain store

its

trade in Decem¬

enjoyed, the best business in

ber

Total sales were the
record in point of vol¬
as
from
seasonal

history,

r

largest

on

well

as

ume

standpoint.
The

"Chain

Age"

Store

index
157

of sales for the month rose to

of

1929-1931

the

from

151

average

100,

as

The De¬

in November.

cember, 1940 index was 128, indicating an increase, - this ...year..of,

.

22%.

-

:

.

.//%//;%/'/

.

for December

The index figures

by groups compare as follows:.

Chains.—

Variety
Shoe

160
185

_

Drug

'

___"

The

revenues-

149
151
112

reported

that

manufactured

in 'January,'
*

164

•

Association

Gas

American

140

153
170

162
153
145

-

175
147

___________

Grocery

1

v-

178

Apparel

<

1940

1941

1941

...

Dec.,

'Nov.,

Dec.,»

.1

and

1942,

of

ernors

of

the Federal Reserve

•

System,

last week joined

v

and

obligations.
the

historic

by asking the Mayors of American cities at their
$68,640,700 in., October,- 1941, as annual convention not to oppose the President on this matter.
compared with $64,912,800 for the
Mr. Eccles obviously was unaware of some basic financial
corresponding month of 1940, an
increase of 5.7%.
Revenues from considerations involved, for he dragged in consumer pur¬

with

and the threat of inflation as reasons for
rose from $23,564,700 a year ago
conceding to the Federal Government this power of .tax¬
to
$27,116,700 in October, 1941,
ation over the States and their local units.
The Mayors
a

;

gas

industrial

'

,

utilities amounted to

commercial

and

gain of 15.1%.

,

The executive and legislative tampering
and established standard of value, in

the-United States

natural

users

the battle,

chasing

power

Revenues from

1933, led to
est

a

high¬

series of interpretive decisions by the

Federal Court, the net result

of which, supplementing

legislative and executive action described, was to leave
wholly without any standard dollar cap¬
able of being used in .the measurement of future payments,
and not susceptible at any time of modification, despite the

the

were
so
little impressed that they promptly and unani¬
mously adopted a resolution reiterating their /'determined situation is quite as Mr. Epstein depicted it.
A Senate
etc.,
opposition" to Federal taxation of State and City securities, minority report, which a substantial majority of the Sen¬
October, 1941',,a gain of 0.4% over
either by statute or by administrative or judicial decree.
the figures reported in 1940.
ate subsequently sustained, recognized this more than a
The manufactured gas industry
The Conference on State Defense, of which New York's year ago. ; Mr. Roosevelt's proposal was. blasted in that
reported revenues of $31,796,400 Solicitor
General, Henry Epstein, is Chairman, cut the report as "economically unsound and unconstitutional."
for the month, an increase of 1.9%
There remains the strictly Constitutional and appro¬
ground completely from under Mr. Eccles, by pointing out
from the same month of the pre¬

domestic,
1

such

uses

cooking,

as

and refrigeration,
amounted to $41,524,000 in

water

i

'heating

ceding

year.

-

Revenues

for

in¬

dustrial purposes increased 22.2%
while
commercial
revenues
in¬
creased

,

domestic
-

...

1.2%.
uses

Revenues

from

0.8%

more

were

than for the corresponding

month

of 1940.

-

The

natural

gas

utilities

re¬

ported revenues of $36,844,300 for
the month, or- 9.3% more than for

October,

1940.

Revenues

from

sales of natural gas for industrial
purposes

gained 19.4%, while the

increase in

revenue

domestic purposes

from sale for
was




1.3

This
general statement, that Federal taxation of future is¬ priate method of dealing with this thorny problem.
City securities would be unproductive for is the method of a Constitutional Amendment, which al¬
ten to twenty years to come.
Such a Federal tax would most all skilled Constitutional constructionists regard as
burden and impede local borrowing power and accomplish the only proper approach.
Such an amendment would
little else, in a financial sense, Mrr.Epstem said.
He cited settle the issue in accord with the requirements of our
the statistics of the United States Treasury, itself,- as show¬ dual system of government.
Even a Federal administrator
ing that hardly any revenue would be available from tax¬ with real vision should prefer this method, for a properly
drawn amendment would safeguard not only the States
ation even of outstanding bonds.
from Federal encroachments, but also the Federal regime
In recent, years the most penetrating analyses of the
from State encroachments.
As the fabric of time is woven,
purely financial side, of this question have been mad*\
The strands once again may spell out an ascendency of
largely because of' the earlier messages from Mr. Roosevelt
States and of local units over the Federal Government.
to Congress.
Such analyses show conclusively that the
in

a

sues

of State and

4

J

,,

1 li

-

\\

/li

tis •

Volume 155

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4036

331

tom$ry^and suitable standards. That is one side of an im¬ against 97.8% a week ago, .93.4%
any party to any existing contract.
. The
a
month ago ► and 96.5% a year
President, under the law as it-now stands, possesses power portant problem which must be dealt with. Inflation, how¬
ago, the American Iron and (Steel
to reduce the obligation of every" contract for any sort of ever, is; always two-sided.
Prices and wages rise with de¬ Institute reported. The schedule
future payment by almost one-sixth of the nominal amount mand and scarcity, the latter; sometimes artificially created. for the current week is equal to
of
1,614,200
net
that it appears at this moment to represent, while Congress They rise* quite as certainly and often much more abruptly output
tons,
and the President together, or Congress alone ■ by a two- and violently, when money loses the attractiveness which against 1,615,800 tons the week

objection of

.

thirds

vote, may effect any greater degradation of . the
yardstick, or dollar, that may be determined, upon. Con-,
sequently, when any American, under present conditions,
deposits money in any domestic bank, purchases a private
or
public note or bond, acquires an interest under any in¬
surance policy, or s,bUys an annuity payable to himself or to
another, he obtains nothing ;but a promise to pay dollars
conforming to whatever definition the President and Con¬
gress may have determined ; to prescribe by- the time the
right to receive pay merit accrues and at the date on which
payment is in fact demanded and received. He acquires
only a paper promise to make a paper payment, perhaps
another promise to pay dollars of a different and lower in¬
trinsic quality.
'
•
^

.

Contractual Security

Prohibited

rests

entirely upon public confidence that its capacity to
perform all its legitimate and essential functions will con¬
tinue undiminished.

This is the other side of the

problem
^ It was upon this side that John Law's con¬
ception of. printing-press money led to confusion and bank¬
ruptcy in Prance; that the assignats of the French Revolu¬
tion lost all their value; that the Continental
currency of
this country left its
lasting legacy in the aphorism, "not
worth a Continental;" and that the Confederate
paper money
of inflation.

of 1861rl865 fell to its value

curiosities in the

soundness in the

as

old paper or

to collectors of
The un¬

shape of worthless fiat money.
monetary system here described;

and

The State Of Trade

.

made public by the Federal

ures

of the President and Congress in this re¬
gard has no limit whatsoever.
Having already deprived
the standard gold dollar of two-fifths of its intrinsic value;
having taken it out of circulation and made the paper cur¬
rency irredeemable except at the pleasure of the Admin¬
istration; having penalized any holding of gold coin or
bullion by its citizens, individual or corporate; having made
contracts providing for alternative options as to the media
of payments unlawful; the authority of the Government
in these premises has not been exhausted.
Power that
could cut the standard dollar from 25.8 grains to 15 5/21
grains, and authorized the President to make, at will, a
further reduction to 12.9 grains, cannot be challenged on
account of the even more extreme

degree of

some

future

greater than last year, money in-,
of

come

available

consumers

purchase of commodities and
ices

be

may

no

last year,
ters state.

will

be

it

quar¬

v;;-'-

of

Incomes

than

greater

authoritative

was

for

serv¬

industrial
15%

some

workers

greater

last year, according to the
of Agricultural Economics.

than,

Bureau
These

incomes will thus be double what

did not stop with weakening the dollar as a
deferred payments and the currency as a

The power

Although national income this
will be some $10,000,000,000

year

of course, to every
competent legislator, to every banker, they were at the beginning of the
1
and to every well-advised investor.
v
'//
It is not one incapable war.
of correction at this time, while the
Higher taxes on individual in¬
gold resources of the
comes
is expected to hold con¬
United States stand at a very
high level and its economic sumer purchasing power to about

legislative action, beginning in 1933, strength has not been notably diminished.
Correction is
standard for still a simple problem which a courageous and determined
store^ of values, Congress can solve whenever it chooses to act with vigor and
but it prohibited and penalized contractual provisions that,
resolution, independently of pressure from another depart¬
if allowed to remain effective, would have secured the
ment, pressure that cannot be less than irrational without
holder of obligations against losses from such action.
The being motivated by purposes inimical to the general public
agitation led by William J. Bryan, in 1896, for the establish¬ welfare.
To attempt to deal effectively with the other
ment of a bi-metallic currency with free coinage of both and less
dangerous aspect of inflation, while leaving every¬
silver and gold at a weight ratio of sixteen ounces of silver
thing that ought to affect confidence in the circulating
to one of gold, was regarded by holders of all classes of medium itself
in its present chaotic and
threatening condi¬
bonds, insurance policies, annuity contracts, and by great tion, would be unspeakably fatuous and wholly futile.
It
"fiduciary and endowed institutions, as threatening the in¬ would be like boarding tightly the south side of a house in
tegrity of their properties and investments by providing a polar latitude while leaving the north side completely open
that future payments might legally be tendered and made to the weather.
in largely depreciated money.
To meet that exigency most
business men, investors, and lawyers believed that it was
quite sufficient to provide that the future payments must
be made "in gold coin of the existing weight and fineness.';
Reduction of the gold-content of the standard dollar, in
Business activity forged ahead considerably, with most of the
1933, would not have harmed annuitants, holders of insurr
leading industries showing substantial weekly gains.
Carloadings,
ance policies, depositors in savings banks and commercial
electric output, steel operations, lumber production and automotive
banks, endowed charities and, educational institutions, or activity, reflected the increased tempo of war production.
{ Retail dollar volume during the week exceeded the
owners of
same 1941
private or public bonds, if this "gold-clause,"
which had become almost universal, had been permitted to period by from 13 to 20%, making;for the largest margin of improve¬
ment recorded for any week in^
remain in effect.
But Congress legislated to nullify this
seyeral months excepting that further significant increase in
clause in pre-existing contracts, including those* of the immediately preceding Christmas, automotive
production. It reports
United States, and to prohibit its inclusion in future con¬ Dun & Bradstreet reported. The that a study of the defense opera¬
tracts.
And the Supreme Court, to the surprise and indig¬ Middle West averaged 15 to 25% tions of automobile plants showed
higher in retail sales, although that speed is being made in con¬
nation of most competent lawyers, sustained this impair¬
several major cities were begin¬ verting factories from civilian to
ment of contractual obligations, theretofore freely made, ning to note the adverse effect on military, tasks;
.
and approved the limitation upon future contractual pow¬ trade of growing priorities unem¬
for the week total $83,262,000, a
ers.
Therefore, not only is the United States today deprived ployment.
Department store sales /on a decline of 41 % from a week ago,
of any certainly stable standard of deferred payments but
country-wide basis were up 32% and 7% under the volume for the
the right of private contract to insure against statutory and for the week ended Jan.
10, com¬ corresponding week a year ago, as
compulsory reduction of such eventual payments has been pared with the same week a year reported by "Engineering Newsago, it was shown in weekly fig¬ Record/'
Public construction is
•effectively denied.
Executive

before and 1,557,400 tons for the
corresponding 1941 week.,, ■

Reserve

System.

Store

44%

lower

than

last

week,

but

sales

42% higher than in the 1941 week
up 21 % for the four-week as a result of the 114% increase
period ended J an. 10, compared in Federal work. Private awards
were

with last year. .
Electric power

000

kilowatt .hours

realized dur¬

ing the-week ended Dec. 20, 1941.:
The

energy

available

for

dis¬

tribution during last week exceeds

by 15.9% the output for the same
week last year, and represents an

increase of 5.8%

over

the previous

9% under

week ago and 70%

above

last

When

year.

the

until

trade

Lower

later

income

in

groups

the

year.

have been

affected

relatively little as yet,
and are not likely to feel the pinch
until higher social security taxes,
possible withholding taxes and
greater participation in defense
bond purchases reduce their in¬
come.

Export Freight Permit
Plan Adopted by Roads
Railroads handled to North At¬

lantic ports in 1941 approximately
the same volume of export
as

freight

in 1918, yet traffic moved into

those

in

ports

the

twelve

past

months has been handled smooth¬

ly and without congestion by the
railroads,
the
Association
of
American Railroads announced

on

Jan. 17./
;

In regard to the Pacific Coast

ports, the A. A. R. said, the rail¬
placed in effect a per¬
mit system to regulate the move¬
roads have

ment of export

ports.

freight into those

Under

that plan, com¬
export freight consigned,
to Pacific ports will not be ac¬
cepted by the railroads unless
steamer space has been definitely
mercial

allocated for such shipments. This
plan has been placed in effect to

prevent
of

excessive

accumulations

commercial

export freight at
those points and the use of freight
cars
for
storage purposes.
It
that the volume of export

means

below the total for the week last

traffic moved by the railroads to
the1 West Coast will depend en¬

year.

tirely

are

output for the
week ended Jan. 10, 1942, was
reported by the Edison Electric
Institute to have reached 3,480,344,000 kilowatt hours, * close to
the peak production of 3,495,140,-;

5%

higher sales of defense bonds are
added, purchasing power will be
about the same as last year.
This
purchasing power situation is not
likely to be reflected in retail

a

on

the number of ships that

Engineering construction awards are available to handle that traf¬
' V
in 1941 totaled $5,868,699,000 for fic.
the highest volume on record, 47%
Export freight handled at North
above the previous high set in the Atlantic ports—Portland,
Maine,
preceding
year,
according
to to Hampton Roads, Virginia, in¬
"Engineering News-Record" re¬ clusive—amounted in 1941 to 414,ported this week. 65%, or $3,823,- 429 cars, excluding grain or coal,
397,000 of: the total was for de¬ compared with 346,913 in 1940, or
fense jobs,
the trade magazine an increase of 19.5%. In 1918 such
said.
traffic
handled
through
those
-r.;
totaled 416,011
cars.
In
With further demand for build¬ ports
other words, the volume of export
ing and material for additional
.

degradation.
mitted Mr.

As lawfully as: Congress authorized and

per^ week's, production.

Roosevelt's 1933 reduction of 40%, any other

v

'

r

/

An increase in the nation's car-

munitions plants expected, steel
loadings to total of 737,172 cars production last week receded onewas reported
by the Association! half point to 96%, due entirely to
intrinsic gold value |o five grains or one grain or even less.
of American
Railroads for. the! lack of scrap, according to the
If that threat does^not seem to any one to impend over all
week ended Jan. 10.
This repre¬ magazine "Steel." Lines are being
promises to pay iri the future, whether private or public, it sented a gain of 60,638 cars over! drawn tighter in the steel indus¬
must be because that one has an unaccountable faith that the
previous
week,
reflecting: try, it is pointed out, and in most
what the past has witnessed and what many other countries chiefly greater, traffic in less-than products high priorities are cover¬
carload merchandise and a sub¬ ing
production almost to the ex¬
have endured will never be repeated, even under extreme
stantially increased movement of. clusion of civilian supply.
incitement of circumstances, in the United States.
coal.
/iL.
Meanwhile,, says "Steel," every
However, the report indicated means possible—is-being-used to
0*-'■/;■. Inflation
-'

Congress, now or

hereafter, is empowered to degrade the

'%■

in

Congress, during the latter half of the session that closed
December, and so far during the present session, has strug¬

gled rather unsuccessfully but with degrees of determina¬
tion widely varying within its membership, over one side
of the great problem of wartime inflation.
It is seeking,,
with a great deaT of reluctance and considerable stress of
dread of economic and political perils, to find terms and
^measures with which to restrict excessive increases in prices;
and wages and thus in the cost of living according to cus¬




traffic handled at North

ports in 1941

was

99,6%

during 1918, the peak
World
cars,

war.

of that

year

of the

The total number of

domestic

loaded

Atlantic

at the

and

export,

Port of

un¬

New York

alone in December, 1941, was 106,405 compared with ,100,186 in De¬

cember, 1918.
Cars of grain unloaded at North

Atlantic ports increased from 27,060 in 1940 to 44,486 in 1941 or

65%.
weather conditions in
keep production close to capacity
sections of the country had, and in spite of obstacles • output
Export traffic moved into all
held-the recovery in rail traffic is maintained -at record levels. ports along the
Atlantic, Gulf, and
below seasonal proportions. "While lack of scrap continues to Pacific Coasts in 1941 amounted
that

severe

many

hamper production," the magazine to 632,079 cars, excluding grain
continues, "many open hearths and coal, compared with 565,141
by Ward's Reports; Inc.
It esti¬ being idle for that reason, labor in 1940, or an increase of 12%.
mates output at 75,625.cars and interruptions no longer cut into Grain unloaded at those
ports
trucks. -This compares with 60,190 working time, which is. a distinct
increased from 34,427 in 1940 to
last week and-124,025 in the cor¬ gAih compared with last year.
Steel production is scheduled [48,661 in 1941, or 41%.
responding 1941 week. However,
Coastal
Ward's does not Anticipate' any this week at 97.7% of capacity, traffic decreased 10%,
An advance in automobile pro¬
this week is announced

duction

THE COMMERCIAL. &
332

other items of material is most

THE FINANCIAL

SITUATION

(Continued from First Page)
indicate

above

that

we

were

ready to place

democracy's guns
■

„

.

Obviously the bombs dropped on Pearl Harbor did
of these notions. The immediate response
a wave of great indignation, a violent demand that we

violence to many
was

for an eye and a tooth for a tooth, and loud
patriotism and all the rest. But the vocal
afford no test of patriotism, nor can determina¬

return an eye

avowals of unity,
.

chords

can

certainly not

a mere

000

"tolerances"

and

other

countless

mass-produced

articles

of Ordinary

consumption are for the most part highly
specialized mechanisms. So must those be which are cap¬
able of mass production of armament.
To suppose it is
possible that by a few relatively simple changes, such as
characterize the "tooling up" for. a new model car, such
tools can be converted from one use to the other would be
about-as
screw

here

and

mark

are

we

the

present program called for by
the budget we will be spending
'•

$150,000,000
step
upon

day. We must
present expendi¬
times. We are called
a

our

up

tures three

r

to spend for defense more

national
$50,000,000,Up to the present time, we

than half of our entire

income, more than
000.

have had but little

inflationary

The reason for
that is. due largely to the fact
.that we had a great slack of

supposing that by turning a
there, adding an attachment or two, or

the

wide

"three days. By
carrying out

every

'time

time

peace

spending $150,009,the

time we, are

matter

(a now popular term for accuracy).; Far
from it.. The tools which make our passenger automobiles

of

,

butter.

our

Thursday, January 22,.1942

FINANCIAL CHRONICLE

development.

as

with fine phrases. It was at
refining some part of the mechanism it would be possible
both manpower and productive
once evident to all thoughtful rrAen that, whatever the cause
to convert a linotype machine into a Diesel engine.
facilities that were not being
"or whose-ever the blame, we were in for a trying period of
utilized to their capacity. Thus,
Some Things To Remember ■
very considerable duration.
The course of events soon
during the past two years we
have
been
in the process of
made all this clear, or should have made it clear, even to
It is difficuIHo guess what part of the allegations of "un¬
building up our national income
the wayfaring man. Very little consideration was necessary conscionable" profits from defense contracts and even stark
from around $70,000,000,000 to
to convince every one that if this unpleasant business was corruption in the administration of the defense program
around $100,000,000,000, through
to be brought to an end as promptly as circumstances per¬ is true and what part is merely "politics." It would scarcely
the
more
complete and
full
utilization of our manpower and
mitted, titanic efforts and very considerable and very gen¬ be surprising if a certain admixture of both were to be
productive facilities.
eral sacrifices would be required of us all. A great many found, the circumstances being what they are.
Certainly
No matter what the income in
of our people are without doubt now fully prepared to pay the earnings statements of the larger corporations give little
dollars of our people may be,
whatever price may be necessary, but, with deep regret be evidence of excessive profits.
labor, agriculture, and business,
Of course, nothing can be
there is only going to be so
it said, there are evidently a number who are not so said
in defense of either "gouging" or corruption,
no
much left over after the reprepared.
■■< :* v^v'
• matter where found; Such charges as have been made
quirements of our war effort
Partial Support For Total War
have been met. What is going
involving these practices must in due course, so far as they
Here lies one of our greatest dangers. It must be dis¬ appear to have substance, be fully investigated and appro¬ *; to be left over is going to be
increasingly less as the war re¬
heartening indeed to those who must bear the burden of priate action taken. It is important, however, to realize
quirements increase. It is thereprosecuting this defense effort and this war to find the that these things relate to the past.;; Governmental machin¬ ; fore important that the funds
available for the purchase of a
agricultural population—one must suppose that it supports ery has now been extensively overhauled, and the quality
diminishing supply of goods and
the Congressional recalcitrants—demanding not only that of management henceforth; we must all hope, will be a
services likewise be less, or that
it remain upon the public payroll but that it be made the great deal higher than heretofore. It must be part of the
they be diverted into public
subject of special treatment at the expense of the remainder duties of Mr. Nelson and his associates to see to it that such
financing.
'V
The idea of increasing wages,
of the people in the rpatter of prices. The wails that have misconduct in the future is eliminated or at the most held
income, agricultural income in¬
risen to the welkin in Detroit from the throats of wage to a minimum. But in the circumstances the big problem is
cluded, as the cost of living in¬
earners concerning the hardships they think will be imposed
production, unprecedented, "impossible" production.
It
dex goes up is a fallacious ap¬
proach to the problem of infla¬
upon them by reason of the "conversion" of the motor in¬ would easily be possible to permit arguments about profits
tion. It should be obvious to all
dustry to war production must of necessity have the same and the like to get seriously in the way of production. What
of us that the standard of living
effect. The rush of a great many to lay in surplus stocks of we want, and what we must have now, is an unprecedented
cannot be maintained, and when
all sorts of goods they think may presently become scarce, number of planes, tanks, ships, guns and the rest—all, of
effort is made to increase
likewise speaks volumies.
wages, salaries and income to
Savings banks deposit figures, course, of first grade quality. We naturally want to get
meet increased living costs, all
which show that in very large part the recent purchases them as cheaply as possible, but we must have them what¬
doing is feeding an in¬
of savings bonds merely represent a sort of "switching" ever the cost—and let it hot be forgotten that under exist¬
flation cycle. You are increasoperation from one type of investment to another, scarcely ing and probable future taxi arrangements it is not easy
ing the purchasing power with¬
out
increasing the supply of
v
suggest what the bond sales figures otherwise might. All to keep exorbitant profits, even if they are made.v
goods available, because that is
in all, the question remains open as to whether the Amer¬
About the best that can be said for Mr. Lewis and his
something that there is a limit
ican people by and large are prepared for the program
to.
alleged "labor peace" effort is that this gentleman is still
;
v'f
that has been and is being laid out for them with their bent
There are two ways of getting
upon fishing in troubled waters. The divided status
the money to finance the de¬
of the so-called labor movement in this country has without
apparent vocal support.
fense program. One is through
The success of our entire effort will be placed in serious question given rise to many difficulties. About equally
taxes, and the other is through
jeopardy if we are not so prepared or do not become so certain is it that it will continue to be troublesome in the ; borrowing.
Both
of
these
future quite regardless of the Lewis stage management.
methods, of course, will have to
very quickly. The President has very recently made sweep¬
be qsed in increasing amounts.
ing changes in the machinery responsible for military sup¬ Many of our troubles in this field have, however, stemmed
$109,000,000,000 national income
plies and the like for the purpose of eliminating the. con¬ from other causes, and they too can not be counted too
about the amount of our pres¬
fusion and mismanagement which heretofore: have i^uled certainly as things of the past. "But in labor matters, also,
ent national income, and that
income will likely go to possi¬
in this business.
He has made a successful business man the more serious aspects of the situation have to do with
bly $110,000,000,000, maybe as
responsible for this essentially business endeavor, and he matters which restrict production, and here, too, we
high as $125,000,000,000, depend¬
has clothed him with ample authority.
Precisely how he should do well to judge the temper of labor and the quality
ing upon the success of holding
will meet this enormous responsibility can not, of course, of labor leadership by what takes place in the future rather
the price structure in line.
be determined in advance, but it can be said that only by than what has happened in the past. One thing is certain,
Any such an income as that
some such procedure as this can we hope for success.
One and that is that henceforth we can not afford to tolerate v normally gives to the people of
the country a great amount, a
thing is certain. That is, to succeed, Mr. Nelson, upon whom labor tactics which interfere with maximum production.
great volume of funds for new
We must, of course, do what is possible during this emer¬
we must all now rely so greatly, must promptly, even ruth¬
investment, and that would be
after providing for a very great
gency to limit those evils which almost invariably arise
lessly, issue orders and initiate steps which can not fail to
volume of consumers' durable
upon such occasions, but the big thing is to get along with
impose hardships upon us all. They have begun to come
goods, and that would be after
winning the war.
paying very substantial taxes.
even now, and many more must follow.
Will he have the
These are some of the considerations we should all do
It would seem to me that out
tion to win

be demonstrated

.

-

our

*

•

,

.

an

we

are

-

......

of the American people? If not, he is fore¬ well to bear in mind during this season of bickering and
If with each step he must meet the petty intrigue here at home.
hostility of a Washington lobby, or if as one after the other
of these limitations are imposed upon us we raise a hue and

full support
doomed

cry—or,

to

of

do not unite to frown out of Lower

for that matter, if we
each group which undertakes to make

itself
sui generis in these matters—then there is no reason to
hope for success and certainly no reason presently to blame

Exemptions And Withholding Tax

him

that
in

complain, if occasion arises, of what is

taking place in Washington.
"Conversion"

be careful not
phrases which
often make many difficult, time-consuming, intricate tasks
appear absurdly simple.
"Conversion" of plants from the
manufacture of peace time products to the production of
such articles as tanks, planes, guns and the multitude of
Again, it is of great importance that we

to

permit ourselves to be deceived by glib




which it may well

000,000,
,

to

would

of the New

York€>

Bankers' Association, held'
in the auditorium of the Federal

State

Reserv'e Bank

of New York,

like¬

government expenditures,
with
what we
thought in the past were huge ex¬
penditures. But what we have
done in the past, when measured

to huge

comparison

in

proposed a reduction in the
$400 exemption for dependents.
He declared himself "unalterably by

wise

opposed" to a general sales tax,
and stated that "the practical job
of collecting income taxes seems
to me to call for a withholding
tax."
Mr. Eccles observed that
"We have been gradually, over the
last year or so,

adjusting ourselves

the

ments,
In

recent

budget

require¬

fades into insignificance."

part he went on to say:
To
give you' a comparable

picture, in June of 1940, we
were
spending for our entire
defense effort about $150,000,000 a month.
At the present

be

in the fiscal year '43, from next
July

000 to

lowering of income tax

wlnter" meeting

the future well

collect

covered

exemptions from $1,500 to $1,200
in the case of married persons and from $750 to $600 as to single
persons was advocated on Jan. 19 by Marriner S. Eccles, Chairman
for failure.
•
of the Board of Governors of the Federal Reserve System in dis¬
The first task for the American people is to be certain cussing proposals incident to the financing of the Nation's defens4
program. Mr. Eccles, whose views were expressed before the midthe beam has been cast from its own eye. Then it may

we

$25,000,000,000 to
$30,000,000,000 of taxes. Say the
national
income
is
$110,000,-

countenance

The

income

national

that

could

failure.

July '43,' the period
by the budget. That

leave

$80,000,000,-

from

$85,000,000,000 after Fed¬
were paid. Any such

eral taxes

national

income

as;

that

cer¬

would make available
$15,000,000,000 to $20,000,000,000
of savings that would normally
be used for good investment.
tainly

\

The

present budget picture
receipts in the next

for

calls

fiscal

year
of approximately
$28,000,000,000 and this means
under the present tax law, it is
estimated about $19,000,000,000
will be collected by the Federal

Government in taxes. It

that

we

means

must collect in accord¬

ance

with the President's

gram

approximately $9,000,000,-

000

of

additional

funds.

pro¬

The

proposal is to collect $2,000,000,-,

Volume 155

TF^ COMMERCIAL & FINANCIAL CHRONICLE

Number 4036

'

Security J :. tax,. such a proposal: as that
would seem to me to be one of
$7,000,000,000 \
from new additional taxes. .That
the practical and equitable ways
•means - that corporation taxes j- rX of meeting the problem.' I think
excess profit taxes, will have to
that there has, got to be an in¬
be substantially higher than at
creasing amount of what I call
the present time. It would seem
excise taxes/rather than a gen¬
OQQ of that from Social

.

and" to

to

to

me

that

indicate

eral

excess

It

that surtaxes

means

viduals

have

will

creased.
If

'

that would

needed for defense purposes.

'

restricted,

very

adian

the' British

and

will "get

we

in

increase

those
cise

taxes

;

that will be necessary

if we are
going to collect one-half of our
public expenditures in taxes. If
we
are
spending over half of
national income and

our

are

to be

will

With

,,

heritance

and

It
higher
in both of these categories.
there

means

rates

gift

taxes.

be

must

ques¬

It means—it would be my

wise have to be reduced. It will

view that it would be
equitable, and would be
more sound, to reduce those ex¬
emptions than it would to put
in a general sales tax. I am un¬
alterably opposed to a general
sales tax. It is a regressive tax
my

more

progressive tax. It is
based
upon
no
principle of
equity, no relationship whatever
to ability to pay. There is a subsistance wage that is absolutely
and not

■

a

has

and

in this coun¬

-health and moral

for

a

clothing/;

and

in

even

The practical job of

;

taxes

income

seems

collecting

where

many-

so

Cer¬

people

will be subject to income tax as
is

and as would

the case,

now

that

if

duced

as

I

withohlding
would
the

have' indicated,

when

the

tax

due

was

other taxes

could

quarterly basis,

a

be
even

the inflationary

avoid

have

always

had

deducted

that

tax

following
whatever
in

1942,

that
in

I

have

be

or

whatever

would

call for

in

we

are

the

year

going to avoid




1942.
a

is

not

getting

amount

had

in

go,

measure

we

an

our

Caesars

to 8 and

up

in

our

have

if

whom

their charac¬

ter, to that extent we have the
assurance
of
developing
the

10

.

kind

of

make

in the allocation.

There

to be abroad the

seems

we

such

is

contact

constant

that it strengthens

labor.

or

conduct to¬

our

with

those

us

we

will

which

character

worthy of our free in¬

stitutions.
;

sawdust

or

business

Conversely,
wards

bonds.4 Those would be
market issues, the banks to be

Only by so doing can

of selfindividuals, able to rule

develop

nation

a

idea that the Government is go¬

reliant

ing to force people with funds

and be ruled

by

depositors.

The

to invest in Government securi¬

our

■

ties, and
currency

or

may

excess

re¬

they loan funds that
borrow from the Fed¬

the

not

am

funds.

of

•result

deposits

idle
so

funds

far

like

and

Unto

as

cious

never

remotest indication
am

sure,

on

the

possible

cess

is

the

of

deposits in banks to invest those
funds in Government securities.

the

What

Government

is

pri¬

marily interested in is to induce

in¬

Gov¬

financing and to the
extent that they do, they in¬
crease
the total supply of de¬
It

part

Government to force those with

people to save currently. It is
more important that the current

ernment

posit currency.

desire. I

or

see

necessary for the banks to
of the

the

not

-

income

be

invested

isting

more

is

that pro¬

that is fraught with danger.

funds

be

in

drawn

institutions

that

those

invested

funds

the

De¬

it is that

out

already
in

have
bonds.

from

insurance

or

be

must

methods

that

the

beat

"free

men

out¬

can

must

avoid

surpass

With
of

the

methods

Hitler's

to

Hitler's results."
respect to the conversion
full facilities

of the

auto¬

mobile industry to the production
of war materials,
Mr. Hoffman

respon¬

Class

By Roads Jan. I;

I

railroads
on
Jan.
1,
1942, had 74,897 new freight cars
ori orcfef/ the largest number at
the; beginning of. any year,; since
the compilation of these records
began 20 years ago, the Associa-,
tion

of

American

nounced
cars

Railroads

Jan. 17.

on

order

on

an¬

New freight

Jan.

on

1, 1941 to¬
freight cars
beginning of this
year included 46,300 box, 23,638
coal, 1,400 refrigerator, 2,191 flat,
300 stock and 1,068 miscellaneous
taled

on

35,702.

New

order at the

cars.

The
546

Class

1,

I

railroads

locomotives

new

Jan.

1942,

on

had

also

order

included

which

on

258

steam and 288 electric and Diesel.

On Jan.

1, 1941, there
of which 115

91

and

206

were

on

steam

were

electric and Diesel.

were

Class I railroads in 1941 put 80,502

freight cars in service,
largest number installed in

new

the

any year

since 1929.

increase of
the

number

put in

This

of

service

freight

new

in

1940.

the railroads installed

freight
Of

was

an

14,957 compared with
In

cars

1929,

84,894

new

cars.

the

total

number

of

new

the freight cars installed in service in:
the year 1941, there were 44,807'
operation of the automobile in¬
dustry placed in the hands of "a box, 30,938 coal, 1,752 flat, 2,200
super-committee, a joint govern¬ refrigerator, 149 stock and 656
ment-industry-labor council." He miscellaneous cars.
criticized the proposal to have

It

"
would

be

New

:

unfair

to

com¬

munism to label this scheme

communistic,
communism

who

is

because

one

boss.

as

under

at least knows

The

state

is

the

locomotives

service

President

Roosevelt's

budget

was referred
to in our
Jan. 8 issue, page 97, and the text
of the message appeared in these

message

columns Jan. 15, page 226.

installed

in

the

1941

by

in-

Class

I;

railroads totaled 633, of which 161
were

and

steam and 472

Diesel.

number

compan¬

drawing, funds out of a
savings bank, and in¬
vesting them in bonds, and con¬
tinuing to go ori living just as
they have always lived.
ies,

mutual

belief

to

stated:

People have not done their duty
merely by drawing out their
funds

that

totalitarian
states, Mr. Hoffman expressed the
adopted

ex¬

of

Order
4

order,

suggestion

the

totalitarian

men.

more

There

cur¬

idle

so

and

as a

Rejecting

free

as

securities. produce slaves" and said that "we
falla¬

a

was

rumor.

fense Bonds than

more

some

some

Government

There

which

to

has been

people feeling
that their funds might be forced

speaking of the
I am speaking

demand

there

hoarding, I think,

labor, but the

the

Hitlers

little

are

do

v

that

may dt> which Jeans ito wards the
F>'ptietho#:qf a,dictator.pr a;gestapo contributes toward the in¬
evitable
collapse of our free
society.
America has no place

to dealers and the banks of short

..

ment and

74,897 Freight Gars On

course,

come

sales

every pro-

act so as to

.

out-

opportunity

must be the utmost cooperation
between government, manage¬

yard¬

every-day
activities,
in
our
homes, in our businesses, in our
schools, and constantly keep in
mind the fact that anything we

funds

every

organization
to
contribute

every

act will
fortifying of
people. We
apply this yardstick in our

must

for

willing

our every

to

of

we

they do not create
long as they are
lying idle, but they are a poten¬
tial inflationary threat, and if
they are not utilized, it will be¬

If

our

of

free

our

ideas and suggestions as to how
the job can best be done. There

objec¬

a new

in

sibilities of each must be clearly
defined.

certain

contribute

be used,
offering should be made

term securities,

member
an

our

our every

proposal and

the banks should

and

of

1929;

sufficient

of its current

care

inflation

be

adopt

the character of

indicated, the Government

It is true that

that

a

absolutely,) essential
us

funds,

rency,

by the amount of any
withholding tax that had been
in

the

that

source

and then if with trie type
of Government financing
that
has been
indicated, with the
kind of a tax system that has

to take
Y

vested in Government securities.

lessened

collected

double

is hoarded. I would

rev¬

of

element

economy, a management
and
eager
to
provide

every

make

not

can,

been

$50,000,000,000.... That is

that

those

rates^are
tax

very

low, or what we term a slow
velocity. I am speaking of the
great amount of currency that
is not being utilized, a lot of it

,,

the

'43 would

a

at the present time have a very

exemptions, as
indicated, are reduced,

enue,

,.

favored

of

instance,

whatever

borrow

to

possible

every

y
.

(

the

then

tax

sential

governed.

achieve

is

posal and

any

vestor, that we must try to
bring inpbll of the funds,; from

it

stick to

i

com¬

am

agement which recognizes that
collective bargaining is an es¬

'

of,a dictator¬

members

free
are

help

tive,

limited

some

the

that all of

we must
design qur financ¬
ing to meet the requirements of
the investor, every; type of in¬

year

savings

bill would fall due

increased,

on

ruled

be

He further stated:

that

banking system already

—and I

bill is passed

and if the income tax

C ongress

eral. The. owners of these funds

the income tax under
If

the

they

mind

in

to

and

rule

ruled and the manner in

are

To

devas¬

a

right when I say that industry's
job must be done under an ex¬
perienced management, a man-

must once again

we

"to

democracy

particular type
; of issue/ but itdoesSeCm to me

We have at the present time

serves,

income

due

For

year.
revenue

revenue

1943.

the

from

would

banks,

basis. In other words, I
wedded

The banks loan their

that the withholding tax would
be

mercial

Y,

in which the slaves

of in¬

of

twenty-five

were

/

how

which

have

good

men," Mr. Hoffman went
to explain the meaning of this
phrase by comparing the manner

our; insurance

as,

press¬

free

ship

would

tating effect on morale? Am I
wrong in
my deep
conviction;

on

available

departments

bank does not loan these funds.

effect

in

such

ago.

Saying that

long

this

they

as

as

resulting

Americans, qualities which are
so
desperately needed at thif
moment?
No, Gentlemen, I am

years

learn

the

that it would stifle the initiative
and
the self-reliance of

owned

by the Government recovering
as
rapidly as possible some of
the expenditures that it would
be making.
I

be

institutional type

and

«for

he

job,

liant

Govern¬

a

immediate

our

a

in my belief that
experiment at a time

an

like

added, to see that
when this war ends,
American
people will be at least as self-re¬

Govern¬

have

It is

-

ing

for

Am I wrong

entered the first

we

to fascism

that it proposes

in

other

such

World War.

in

companies/savings institutions,

that seems to me to be
making, it is going to be

funds

paid
be¬

..

1917, before

unique

substitute

each

of

America

the

unfair

even

an

bureaus.

mess.

1941, before we en¬
was
less self-

These

yond the withholding tax, based
upon estimates, it seems to me
that that might likewise help
to

depositors

could

.

war,

than

of

a
responsible
tripartite con¬
trol which could bring only one
result—turmoil, or shall I say
turmoilism, in which all of the
three
parties—labor, manage¬
ment and government — would
spend all their time blaming

an

in

we

;

it's

management

or

going out. The

invest

the

reliant

securities,"; the

savings

oof

almost

the expenditure
and the time the taxes are paid.
If

the'

bank

close to

inflationary

are

that

what I speak of as de¬
posit currency, as well as actual
currency
in
circulation, very

the lag between

on

they

as

vestor,

created

effect of
the
government
expenditures
would be reduced, by avoiding
the

that

tered

that there

possibly .$7,000,000,000

the

to

Security

be done outside of the banks.

they didn't have the funds. It
is essential, it seems to me, to
have a withholding tax in order

me

:

cause

brutal

two

contracts and

number

to label this scheme as fascistic.

a

America of

•

000, which would

large amount of money, some¬
thing around $30,000,000,000. It
is essential that that borrowing

in

"

subjects.

ondly, regardless of why it
happened, no realistic observer
can
deny the fact
that
the

the

use

But

of

set

infinite

economics

-i

necessary

/

an

the

term tap issue, say a 15-year,
2l/z, which would merely be an
extension of the 12-year series
G without the limitation of $50,-

program

ceived and would avoid the re¬

get

upon

to

It' has seemed to

Then

desirability
legislation which makes

in the

in

de¬

no

these

involve

free society cannot be
maintained except by a people
who
are
industrious,
selfreliant and courageous.
Sec¬

immediately spends those
funds.
/
'

"

at the source
lessen not only
of collecting the

based

permitted

your

men¬

In spite of the kind of 4;

tax

loss

no

would

politics,

that

First,

it,

ment

the

Period-

a

cipient of that income spending
the funds only to find a year

that

be

States

facts must be faced:

how

on

carry

which the Government

ment

would, be

Social

to

return

funds

possible quick adjustment in the
timing of tax rates and the col;Y lections during the emergency

tax, but it would collect the tax
at the time the income was re¬

later,

the

to

of -tax

greatly

exoense

that

taxes

there would

fast

tax

at

wanted

year

The point is, you don't lose the
funds, because the funds will be
coming right back to you as

should consider the
•

exemption is;re¬

the

is

^.recommends

^6e the cas6'even to: a greater
'extent

collected

they

effect,

or

*

which have been sug¬

payroll. taxes—he

added

to

me

"call for a withholding tax.

tainly

to

invest¬

five

or

issue;"You may say," "Well, we
don't want to lose these funds."

fund—and excise taxes. He also

to

to

security of

months'

three

a

in the banks for that sort of

tions the Social Security taxeS;

war

a

gardless of whether it is the

six

a

$8,000,000,000 available in funds

inflation,
Congress to give

income-taxes
source,

;

r

It's

are

gested for that purpose, such as
'

certainly is about the minimum
that is essential for food, shelter
economy.

controversial

"

this question

consideration

measures

$600 for- a
not excessive, and that amount

or

other

funds.

combat

he -urges

careful

exemption
married couple,
single pefson is

try, and certainly an
of $1,200

to

measures

tricate

Mr. Hoffman stated, however, re¬

was

"*

essential for the maintenance of

i

ground in

and

time in

for extraordinary tax

come

planned, under which in¬
dustry operates through an in¬

upon 30 days' - notice,/ it
Could be cashed in. That would

or

great-

once

of

President believes that the time

r

attempt at
why free so¬

realm

a

the

analogy to fascism, or the cor¬
porative state which Mussolini

United

preciation. They would

suggests

'

long

any

answer

ciety has been losing

and

interest

that progressive taxes
should be strengthened by clos¬
ing loopholes. Exemptions in
estate and gift taxes should be
lowered
and > the
privileged
treatment given certain types of
corporate business should be reexamined.
Excessive
profits
should be recaptured. In addi¬
tion to these
suggestions, the

be

has

the

and

Specific tax proposals
not, of course, included in
President's
message.
He

the

that

one

the

principle/there would be

of taxes.
were

this time to

"

will give
you, if you haven't read it care¬
fully, at least what his views are
to

is

payment

long

this subject, because it

with reference

$1,000,

investment, depending

;■

message" on

view;
at least, that it should be done
—that the exemptions which are
now $1,500 and $750 should be
further
reduced,
possibly
to
$1,200 and $600. The exemption
for dependents of $400-will like¬

than

and

Explaining that

investors,

interest

any*

that sort

I have only spoken
generally about the kind
of a tax program that I think is
essential, In
that
connection,
though, I would like to read
just" one paragraph from the
budget

less

at

ment,

program,

President's

forces

needed doing.

give the holder of

y.

very

It means there
exemption for in-

less

the

to

other

is

accomplishment would insure the kind of morale needed to win
in an address before the Tulsa (Okla.)
Jan. 14.
He asserted that this
job is
just as vital to winning the war as$
—
that
boss.
It has a somewhat closer
assigned
to
the
fighting

date,

tion of how the job should be
financed
aside from the tax

necessary.

be

reference

not

say,
that

and unequitable.'

be unwise

to

go¬

ing to collect one-half of that
in taxes, then you can ?ee about
the kind of rates that are going

rents, on essential clothing, on
and medicines that are
essential, it would seem to me

drugs
*-■

"to

society

the war, Mr. Hoffman said,
Chamber of Commerce on

that it be "issued* iri amounts
of,

on

free

Its

was

banksbut

the sinews of

today, accord¬
ing to Paul G. Hoffman, President of the Studebaker Corporation.

issue to be

an

strengthening of

task which faces the civilian population of the nation

in which the tap
permitted to run, such
a
non-negotiable
issue, 'to be available hot to the

tax

essential foods,

on

The

first

period

issue

goods. But' to put amex-

tax

coupon

the

for

the

■

picture
of the

idea

some

of

for

little higher rate
second, a little higher
a

the third, higher rate
fourth, and so on, with
average rate depnding upon

an

*

■

amount

Says Strengthening Of Free Society Is
The Great Task Of Civilian Population

for the
s'

On

excise

an

say, a

rate

one

the

rate

dampen the demand for

would

months,

for

applicable to those
particular that are

in

it

six

tax

of

have,

on

goods where the amount
available for civilian supply is

would look at the Can¬

we

excise

.

term

those

in¬

to-be

The

tax.

be

goods
1

indi¬

on

sales

should

profits will be almost a thing
of the past; but I don't know
why that shouldn't be the case.

I have: suggested, that

a short
tap issue be put out, that
might, run two years,
three
Y?years; vf6mY-ye£fs^ five years,
;,

.

collect

333

1930.

This

put

locomotives
which
were

in

In 1940,

126

electric

the largest-4

operation

there

put
were

electric

were

was

and

were

in

since

419 new

service,

steam

Diesel.

and

of
293

THE COMMERCIAL &

334

associates

in
probably
will make the current series
of
sinkings more important
than were the 1917 and 1918
attacks. The German aim, ob¬
viously enough, is not only
to sink American ships, but

British

production

turned

to

head,

re¬

with

his

London

chief.

safe

The

completion
of
the
journey made possible the publi¬
cation

of

few

a

Atlantic

details

back

The

their

duties.

convoy

coast

the trip by air and was
welcomed by Mr^ Roosevelt on his
arrival in our capital on Dec. 22.
pleted

In

the

of

course

Island, a week ago.
Norwegian tanker NornesS went
down only 60 miles off Montauk
Long

islands

rious

Point, and this attack quickly was
followed by the
sinking of the

prehension over the Far East.
Much public criticism has been
voiced in England, during recent

quickly if

collapse
Creased

threw out hints of

withdrawal

early

Chinese

after

the

from

an

con¬

flict, if this policy actually is pur¬

the

bious, to
has

to

face

bate

were

ippine

de¬

immediate

an

defense

velt.

ish

.

which

the

Muar

fighting in
week, and

;

be
;

to their

battle.

The

advancing

The

eral

Douglas

with which

terrain,

disap¬

Hitler

indignation.

MacArthur

equipment which
the Japanese brought with them

;

Philippines, and the obvious dif¬
ficulty of beating the Japanese
are
of little avail in the moun¬
territory they may oc¬
tainous jungle country.
Nor has
cupy in the Western Pacific, arp
matters that add steadily to the the favorite Japanese method of
Hpavy at¬
doubts and anxieties expressed on infiltration succeeded.
our
own
side of the Atlantic, as tacks were made by the enemy
late last week, and fresh assaults
well as in England.
developed
this«.-» week,
but
the
Nor is the Axis less active
attackers were sent reeling back
j than the United Nations in
with huge losses.
Even the enemy

in

and

official

the

to

the ' Far

decide

also

apprehension

joint : Churchill

of

program

over

beating

-

Japanese

clear

their

by

northernmost

shaped

of

of

of

them

naval

the'secondary

*

he

perhaps for a landing party.
Dutch bases on Sumatra also were

-

not

the

made

that

to

/Netherlands, British and Amer¬
ican fliers hammered

-

formulating

World War.

reported

v

aerial

and

*

of

Ger¬

of

against

"common

to

agreement

aims, it
-

:

•

itarily

was

indicated, at mil-

over

Aerial
tacks

-

has pot

been disclosed.

strength

of

the

last

been

to

;

omy j

are

vital for the war^ econ¬

"

-

v

■

'

The newest development of,

the

war

is

far

from




unex¬

an

be¬

also

submarine

,!■

tained."

■

quickly

]

From

had

A
was

into the

at

Burma

been

Madras;

iri

Such offsets

are important,
conclusive.

but

from

' \

far
V-

Russian

Gains

,/.

miles

tndia1 'came

but

An air base at Tavoy,
southeast

ihe; conflict

remains

fluid,

of

Thailand from Burma. If the

forces

our

at

Department

a

sinkings

-

number
of

presumably

transport,

aircraft
marines

Tckio
4

were

vessels

being used
perhaps

carrier.

Bay"

other

The large ship

was

or

a

cl^ss,

of

eremy

also occurred.

of

mercha nt

Yawata

.

of

real

nounced by Berlin on Dec. 8 aver¬

mew

countered, it

as

Our

operating

as
an

su*»-

"off

Burma
supply line to the interior

well

China

will

the

that

be

ages

hardly more than 40 miles.

be

„

:

threatened

ad¬

with further serious
effects upon the Chinese will to
continue the fight against Japan; i

Meanwhile,„ the
struggle *. for
Malaya and the -giant'..base .of
Singapore went on, regardless of
Monsoon rains and steaming heat.
Australian
an

of

"After long preparations and

.

ditionally,

The

submarine

the

Road

>

reported

ton Japanese
of

wh>le
,

a

last

may

began to play
.in the defense
Malaya, probably because some

'

numerous

possiblv
reached

f

yv

have

lines

arrived

the

where

and

>

from

miles

63

only

German

the

advance pest
forces in the

Emu-

toward Moscow.

drive

the Red
Army threw offensive pincers
Nazi

dating

around

ently

i

ing
'

like

tactics,

Mozhaisk

and

appar-

Germans to
town.
Accord¬

forced the

evacuate

,

Jananese

Australians

town,
of

the

Moscow,

' Moscow, was an

i
<

troops

because

claims

"advance

Russian
t r on p s
finally
recaptured
Mozhaisk,
Tuesday.
This

'from

«

imnortant part

reinforcements

to.

the

Saturday,

a

were

can

stationed.

The

defenders

contest

of

vital

a

for

of

Suez.'

.

.

5,500 Axis

hope

that

means

longer

no

of

against

Axis

the

have

;

move

waterway

the

Mediterranean
Sea.

^

from

into.* the

'

-

Somewhat

',

much

successful

a

the

Red

:

'h

-

hampered

"

/

f

bad

by

weather,, the British desert units
continued

their

pursuit

Italian

and

man

of

Ger¬

mechanized

forces near El Agheila. Reports
yesterday suggested that the bat¬

tle is about to be resumed. Heavy
reinforcements may have reached

the Axis, however, and the prob¬
lem of supply now wears a dif¬
ferent

lines

aspect,
far

are

since

the

British

Raids

extended.

on

the

Axis shipping line of supply
across the Mediterranean were re¬

ported

by

•

Axis

London.

Beating Hitler

Large-scale

fliers

-

100,000

-

'f-*l-

~

beating

for

;

undoubtedly are now for¬
mulated, at least tentatively, since

the Churchill-Roosevelt conversa¬

tions'

were

expressly for that pur¬
What these plans may be
military secret, but the extent

pose.

is

a

,

of the

preparations; is openly ad¬
mitted and the conflict obviously
is expected tp be long and bitter.
American

Modest.

forces

were

landed in

England/ Tuesday, pos¬
as
the advance guard for
may prove to be an. even

sibly
what

larger
we

expeditionary

se*rt

overseas

World War.

than-

force

in

first

the
•.

•

%

Reports continued to
of

.

out

come

Germany, this week, of sudden

illnesses among the leading Reich

general officers.
Walther

von

Indeed, Marshal;

Richenau

died-last

Saturday, reputedly of apoplexy.
Other German generals, who were
active
ill

in

which
tween

Reich troops are

the

on

Russian

front,

surprising numbers.
may

the

Nazis.

trapped in the pincers.

plans

Hitler

something

Moscow,

"

last

border

was

A incessantly.

Rangoon, with the Russians holding the allwas
captured by Japanese-Thai¬ important. initiative. Communist
land troops, which throw£ do.iibt military claims, may be somewhat
upon
the previously announced exaggerated, however, since the
British program of moving against actual, retreat of the Reichswehr
the Japanese communications in since the "withdrawal" was an¬
235

the

surrender

troops
•

on

Burma.

ern

in

one

The

Warfare between Germany sqid
Russia
enters, its eighth month

Tuesday that Thailand today, with the Russians pursuing
forces had made common cause the, defeated Reich forces on a
with
the
Japanese
and
were long front west of Moscow. Bitter
marching against points in south¬ Cold again is reported in Russia,
reports

the

on

nounded the British base at Malta

;

regime

new

points.

Japanese

was

"de-

numerous

to the southward movement of the

formed ih Burma.

threat is not quickly

at¬

Thursday the sinking by

sh'n

a
-

islands

Mindanao

Japanese troops.

American

17 000

our

shipping is not a light one, how¬
ever, since sinkings were reported,
rather
frequently.
Tankers ap¬
parently are being singled out by
the enemy for attack, since these
vessels

a^d

and

by

Navy

Nor has

enemy

The. threat

the

however, and

beginning to make
showing
in
strength.

The precise number of

ascertained.

in

A good

are

attacks just off our Atlantic coast

the

strength

of

Japanese

v

and exceedingly grim

shipping,

Luzon

remain free of

German submarines have opened
new

aerial

of the smaller

tween

phase
of
the
Battle
of
the4 Atlantic,
through attacks on our coastal
a

reinforcement

in American hands,
Atlantic

the

control

Philippines, for.,

part of Mindanao Island remains
many

•

aerial

Far East has been noted.

States.
of

modest

a

American
\

the armed forces of the three

Battle

There is quite

Japanese

much of the

only

correct distribution of

aggressor

numerous

lightened
plane losses

.

signed which

was

Corregidor

marksmen.

our

obvious

operations

enemies." An

common

of

owing' to

Japanese

spokesmen, Monday, with the
aim

bombardment of the island

fort

Berlin dispatches

meeting

a

Italian

man,

for ! the

plans

at

communications, and seriously de¬
ranged some of the supply lines.
Submarine attacks also cut heavily

.

he

Saturday.'

"

.

and he had

announcement

point

last

»

British

to

-

island of New Britain.

Dominion

returned

yet

when

forces

the?

which

Libya and Egypt

bombed,
and
Japanese
fliers
ranged also to Rabaul, on;-the

shipping available to the
aggressors.^ Around Changsha, in
China, the Japanese defeat ap¬
was
in
London,1'
pears to be complete, and Chinese
endeavored to obforces are attacking the-invaders

status for Burma,

This

Pass,

surrendered

Empire

and.

the ground that he

immediate

at

hold,

base

which presumably is
marked out for early naval attack

communication
I; with the Japanese. Mr. Saw
where

Ilalfaya

forces

Axis attempted desperately to

c

at Amboina,

in

recently

Italian

and

i

points- in the Netherlands pos¬
this week, chief among

tion" of the Burmese Premier,
on

<

of

;

sessions

•v.:

been

now

member

.•

German

Tney i

strateg

they

as

the Japanese

the Axis.

oddly-

Celebes.

number

a

-

in

'

the

Hitler^

island

!bombed

the

of

arm

by

are

been

capture

the

on

bearing good fruit.

are

victories

seriously threatened

prepar¬

nas

of fresh

Axis forces

over

of

Libya would
be of more importance, however,
if
portions of the Far Eastern
possessions of Britain were not so

swiftly southward
main islands of the

the

the Mediter¬

Libya and Egypt. The
long preparations for warfare on

move

made

nounced, Sunday, the "deten-;

U Saw,

border

...

are

rforthern portions of Borneo, the
..'Ji oil; island of Tarakan and the

ttfc

'

first.

to

against

Roosevelt

—

the

That

Netherlands East Indies

"sit

continue

early

Control

of

as a consequence

victories

the desert

ing

East,

to

ceptibly

British

rv

Australian

declared.

express

tain

can

has been strengthened per¬

ranean

heavily, and were reported
this Aweek as having in¬
some damage to oil depots

and other installations.

*

suffering

the

end

spokesmen

;

effec¬

to

Russia, and much

control

The Japanese bombed Sin¬

flicted

t

and bloodshed, a high Chinese

out of any

again put

can

forces

Mediterranean
British

gapore

Unless

decidedly

may

tight"

had

in

use

well.
v

is y.

of the nations fighting

China

Mac-

Germans

happen in the meantime.

Japanese possess ample squad¬
rons
of
interceptor
planes
as

the cenceri-

over

aggression

Gen¬ Arthur and his men are familiar, ]'■
aids the defense mightily.
Tanks }•
in the
1
and other ;land

spring.

possibly three
other hand, be¬

the

on

the

tive

the

Minister.

beating

more

rescue

for

border before

their mechanized

.points, airmen of the United Na¬
tions
blasted
at
the
Japanese.

.

reinforcements

months,
fore

enemy

,

of

to be beaten back

are

own

It may be two, and

on

a

really

mans

| forces have, of course, captured a

.

ing given the Pacific conflict. The

more
rapid territorial progress
than in recent weeks, if the Ger¬

:'-'v

■;

in the Russian

the winter already well advanced,
the Red Army will have to make

this front appears still to
major item in tne desperate

nese

dec¬

a

The discontent felt

on

Chinese

presumably the last re¬
action is strictly de¬

this

of

time factor

campaign now begins to be sub¬
ject to revised calculations. With

Aerial superiority by the Japa¬

;.,

Likewise of grave import
gressor.
' fensive,, and perhaps will continue
for some
time.
The
Japanese I; are developments in Burma
President Roosevelt took note
and Thailand which already
however, continue to pour troops
of the rising chorus of criticism
onto Luzon Island, and our forces
are affecting the struggle
on
in
the
United
States, Tuesday,,
on Bataan are being outnumbered
the border of those countries.
when he declared at a press con¬
ever more heavily.
-j ' I The British Government an- V*
ference that full attention is be¬

lack

The

a

was

;But bombing planes would seem
,to be our main reliance, whereas

.

Japa¬

intense

Prime

Empire

come

half

land.

Britain and the United States

"This

sort.

for action to halt the Pacific ag¬

first

modest when compared to the

Corregidor

to

and

tration

'with their backs to the China Sea i.
retreat

intense

of

scene

last

Churchill.

i
be many days, however, before tively small band of stout-hearted
to hold Bataan I
the matter is discussed fully in troops continued
i
London, and in a manner befit¬ peninsula,' northwest of Manila
ting its v importance, for further
and
a
gains by the Japanese in Malays
occasioned fresh calls in England fortress

the

of

the Axis.

The coastal

!

within America and the Brit-*

Gen.

situation.

.

du¬

Saturday, of the
plans of President Roose-

war

Douglas MacArthur and his rela¬

unsuccessful. It will not

fighting

voiced

proval,

'marauders,
which
Mr. Churchill stilled the clamor probably are hunting
in packs.
for a time by declaring, Tuesday, The Navy maintains
silence on
that he shares the anxieties felt sinkings of German submarines,
alleged ground
pver the Pacific war. But he ex¬ however, on the
pressed great confidence in the that information would be of use
eventual outcome of the struggle, to the enemy.
' V
9nd added that a full dress debate
Philippine Theatre
on
war
strategy will take place
Save for intensified naval and
soon.
Questioners
were
put
aerial
action,' little change' oc¬
off
again
and
again
by
the
curred in recent days in the Phil¬
£rime
Minister,
and
efforts

.

China,

tooth and nail for

ade,

the

against

the least.

say

been

nese

The

somewhat

are

Nationalist

other occurred, the Navy
Department disclosed on Tuesday.
It ■ was
also
made
clear
that
■counter measures are being taken

Islands.

are

sians at Theodosia has been rolled \

number of air fields in Malaya.
is producing
Operating from Burma, Malaya
among' the United
and
probably from Netherlands

which

Nations

tacks,

sued.

the

also by

Malaya

of small boats.

south

zone

se¬

The

Russians

heavily,

moreover,

repercussions

known at¬

these

to

which
as

critical."

even

Netherlands

situation,

casualties.

some

In addition

in-

and

reached

describes

drive rapidly approached
Singapore, and fresh attacks de¬
veloped on a number of points in

a

occasioned

Germans

criticisms

sharply

authorities

the

The

beaten.

were

been

frankly

enemy

tanker of Allied regis¬
The Allan Jackson, of U. S.
days, of the Churchill-Roosevelt try.
decision to concentrate largely on registry, was the next victim, and
the Malay, also of American reg¬
elimination of Hitler for the time
being, in the belief that the Jap¬ istry, was bit by torpedoes but
towed into Norfolk.
Each attack
anese member of the Axis would
Coimbra,

has

London

the

with the im¬
mediate aim of retaking Kharkov.
The Crimean landing by the Rus¬

the
the
Japanese were reported yesterday
only a few leagues from the Joweek.
A phase of the battle for
hore Strait which separates Sing¬
Malaya and the great East Indian
apore
from the Malayan main¬

off
Tne

active

were

vessels

from

British-held

into

Indies

Netherlands possessions in the Far
East
became
ever
graver,
this

freighter went down after an
attack. Moving down the coast, the
enemy

a

Although the Japanese advance
of flagging here and
there, the threat to British and

ian

the British Prime Minister
spent a brief holiday in Florida.
Appearing briefly before the
House of Commons, Tuesday, Mr.
Churchill
promptly
was
faced
with the problem of popular ap¬

"day,

a

shows signs

waters, last week, for a Panaman¬

stay,

a
ship
which is

average,

The

Canadian

forays in

their

began

American

his

,

back, Berlin claims, and little has
been said in recent days by the
Russians
regarding
this action.,
that stream.
Through back-coun¬
The Red Army still holds Sevas¬
try lanes the Japanese
resumed
topol, however, and the landing at
their movement, and
masses of
Kerch has not been repulsed by
enemy troops apparently filtered

rate
that doubtless will be augmented
soon.
'

apparently

submarines

attacking

line, only 90
Singapore,
was

reached by the Japanese over

means

The return to London was accom¬
German

miles

Basin

Donets

'

River

Muar

were

than

more

the

on

British Isles.

the

The

a

on

task of supplying

the primary

plished entirely by airplane, and
apparently was without incident.

time

sink

to

with

compared

when

ance,

treat advisable.

The

scored at the last week-end, and a bridgehead
Japanese tanker. promptly was established by the
The United Nations are managing enemy on the southern bank of

same

import¬

modest

of

are

number of aerial battles.

a

and direct hits

our

on

!

Department reported Tues¬
day tne sinking by means of aerial
bombing of a Japanese cruiser;

viewpoint,

here

sinkings

the

three 1 Japanese ^

least

War

coast
successful
From
the

larger; strategical

Washington." Mr. Churchill com¬

in

own

our

highly

gained

announcement;; said,;

at

,

warships

our

toward

from

British
group came to the United States
on a large new British battleship
and landed at a port "south of
crossings.

draw

to

also

the

of

warfare

submarine

States. Lord Beaverbrook, the

•

advances

technical

and

in the United

were

and

curred in the first World War,

(Cpntinued from First Page)
'

Thursday, January 22, 1942

-Far to the north the-Germans
heart from the' valiant
fighting of the "Aussies." Frontal maintained their siege of Lenin¬
ships Were sent to the bot-\, .attacks - by ; the
Japanese were grad, but, some supplies obviously,
•■n-tom. t'
beaten back on a number of oc¬ are reaching that city over the +
>
•
--I.by the British
Empire ice of Lake Ladoga. Finnish forces
In
aerial
attacks
fromsecret casions
bases our forces harried the Japa¬ units, but the infiltrations of the are holding their positions from
nese airmen and
scored victories enemy continued and made re¬ Karelia north to the Arctic. In the
further

incidents oc-

Similar

pected.

Foreign Front

FINANCIAL CHRONICLE,

clusions

reflect

a

are

All of

cohtest be¬

German Army and the

But such
may
i

comforting con¬
not be correct and
•

.

.

■

-

r

Volume 155

Number 4036

THE COMMERCIAL &
FINANCIAL CHRONICLE

335;

should not diminish our
yvar' effort
in any event., ••
/-.V*

Britisa

j.

:

tiiets

mau-neid

continent
The

at

raids

than

the

the

/

President, J/P. Maguire & Co.
j •/■/,. Investment;
bankers* -Charles
S.
McCain,' President, Dillon,

;

-

Ger-

European
week.
"numerous

less

were

unfavorable/ Similarly;

New

Rooert

destroyer Vimiera,

by the British Admiralty on the
day."
.;/'/// \ .. ; ;
'//-.■
Pan-American Conference

•

same

;

<

conference

a

of

Janeiro

It is hard¬

gathering

which

York

Coffee and

Exchange, William
(President).

ly surprising to find that the Rio

Mr..

mination

to

-

have

all

,

of.

the

Pierson

V/.

illusions

Sugar

the

equally

determined

Argentine

stand for aloofness from
the war.
this difference in views

Whether

be resolved is not
clear,
the Rio
meeting nevertheless
be counted upon to
can

produce

successes/

Welles,

U.

can

the

as

that

of

last

from the

the

United

fully

endless

into

Axis.

cloak-room

tained

stand

"rightly

added.
This

does

duly

not

friendly
Military

Axis.

un¬

toward

•

that

country
States which

to

the

the

home

it

is

am

Italy and Japan.
The leading role of Argentina

this

Red

Germany,

not

to

be

denied,

and

the

that

Finance Section Quota

the

:

Cross

York,

War

Section

Fund

announces

is

a

of

of

the

Red

Greater New

that his unit has

quota

$50,000 000
ican

of

war

$7,330,000 for the
Chest of the Amer¬

Red/ Cross.
/ Mr."

Honorary Chairman

Irving

Trust Co. and head of one of
the
five major sections of the
Fund's

Commercial

President, Ba~k of New York.
Life insurarce
companies and
"agents,
George
L.
Harrison,
surance

New

York

Life

Fund

a^d

broker«,

Charles D.

Hilles,

Resident
Manager
State of New York of

the

,

for
the

Employers' L^H'Ftv Assurance
Corp.. Ltd. of London, American

Employers

and

the

"

ance

I^siirance

Co..

Employers Fire Insur¬

Co.
,

Finance
L.

companies,

Wvnf>crar;

Howard

President,

Com¬

mercial Credit Co.

personal

William
:
i

E.

wholehearted

companies,
T^nmnson. Presi¬

Textile factors, J. P.

drive

the

 )/


v

'"casing

more

for

them

in

'he

defense

ap¬

taking

/

this

Act

to

the

Jan. 17 ap¬

workers.

The

fullest extent in
the continued life

private construction indus*
Vv a«d the
mortgage market dur¬
ing the war emergency.
•
:»

the

on

ar>d

for
as

its

Phillip

well-being,
of

this

con^

possible." He went

to say in part:

.

,

.

.

./

on
,

,

Title VI of .the National
Hous¬

ing Act provides the
machinery
for the financing
of
necessary

home construction.

FHA have not had
considerable
ovi-erienee with Title VI
loans.
Tbev may be certain
that these
loans have all the
investment
sured

pvti-a

of

and

may

FHA-in*

with-'mne-or two
features. As them contri¬

bution to the
are

other

naner,

urged

war

to

investing
be.

effort, lenders

make

tbe~e

institutions

buy them,

as

the

loans
are

case

for

they

has.

with

them,

the

dustrialist

them
of

with

a

is

analytical
mind,
travelled pretty much all
Europe recently and who

es¬

eign

has

get

out

least

planes;

President

this.

Nel¬

"strong" man*
so high here¬

.

Dealers, who have
days

been

"old

quite
Knud¬

man

they

This

-

had

shelved

deals

directly
industry.
production,

the

tanks,

the

the

guns,

job he's been doing, and

a

the

one

seems, is still to be
work on

to

New

Dealers

agitation, said he

Washington. It. is that; ing.
bureaucracy iri Germany has be¬

or-

the

automobile

man

in

on

Nelson

as

Knudsen, it
the

made is applicable to. what is
go¬

ing

the

had

correspondents '~r at

executive

do

a

up.

planes.

with

over

those I know, would not have had
contact with.
One observation he

and

to

as

goes

whom the for¬

men

that

thinking

and

who

-

com¬

notice
that
as
lieutenant
general, he is still in charge of
production, particularly of tanks

just had lunch¬
business man, an, un¬

contacts with

stock

sen,"
him,

my

usually

out

him

But the New
for
several

This writer has
eon
*

the

seems,
a

are

and

tofore,

/'•///'"'%/.'

;/?

it

such

Roosevelt

kindly towards

none

under

one,

which has not been

T.

business.

of

permitted

industrialists,

employed

presence

stories that Nelson
called in his
lawyer to write

son's

cocktail with them, etc.
The
value they had when the in¬

lOSt.

Nelson

No

the order

knock

among their contacts
demand
that
they
live

and

the

embracing

out

There

even

upon

to

in

wangled

all

order

en¬

and

ever

plete,

these

insist

talking

set-ups.

has

contacts.

ceasing

known

was

Knudsen

payrolls

have

a

so

of

new

news¬

of

Knud->

OPM, Mrs.
gathering of

Then, the New Dealers got to
analyzing the respective jobs of

around

Green

his

beat

can

troversy.
about.

equal,
him

figures

any

Hillman

Murray he

should

be

Lewis'

that

But he

in

their

was

good at do¬

not

the

was

to

man

it

.

-There

ington

today some 250,000
employes in Wash-! it

alone.

The

/

situation

haSi

is

a

new

Nelson,

OPM,

set-up

the

are

rather

or

under

now

"war

production

serious

so

cities.

tive

.

after production.

are

Government

that, he

time

overloaded

so

namely, Bill Greem become
Murray and Sidney agencies

that
several, minister," will
"plan." Plan what?
being transferred to
Oh, he will be the man who will
But the

information

authorita-j

is

that

the; tell the

in

dress

manufacturers

in

that

con-' next few months another 250,0001
they must not have so many de¬
he is worried
employes are to come here.
There;
figures that he are as-many agencies in Wash-1 signs of dresses; he'll be the man
who
man
tells
and that ington
us
that
we
must
today dqing nothing as!
away from be¬ there .are that are
He
will
doing some-1 "streamline."
"plan."
,

Murray has gotten
ing such; /
Giving
this

thing.

factual supoort to

some

line

•

„t//

You

can

of

get

.

.//' ,1

-

idea

an

/; ; Presumably

...

of

what;

reasoning is the facti the confusion- in
Washington-,
that//; Lewis' " "great move" was wherf you understand
that for

made just after.there appeared in
"Look" Magazine an article
by

made

Raymond Clapper, widelv

there

commentator,
L.

Lewis

Was

not

was

a

syndi¬

entitled' "Is

Washed

isj
a;

few days after Donald Nelson
was!
"war production minister'

j

-

seemed

science

to

be

stricken

quite

attitude

a

"very

is

tre¬

a

said/

■■/•

,

man.--

■

-

.1.

,

example of Lewis' pubPoitv brigade doing a job on the
Washington reporters is not t.h<>

first—certainly not
recent

was

-4°

months.

conference

men

the

M«'hee
for

recent

period

a

more

the

There

the instance of the. widelv ad¬

vertised
ef

over

but

years,

over

the

and the renresenta+ives

captive

Lew's

the

between

.Closed

emergency

workers

was

on

making

shon.

which

It

the

a

stand

was

an

e^es

the country were focussed. On

of

one

...

.

.

' ,'/..

/

'

I*

This writer's information is that
of Wac Stimson was
one
of those who did
not, think
he had been a
square

Secretary

peg in
had done

a

round hole, that he
a
splendid job for this
country. The
very definite evidence is that Mr
Rocsevelt
aop^eciated
the

he

had

having

served

taken

Dolitir-s of
less.

done

appreciated

had

he

be

and

th<>

fact,

loyally

part

in

Washington.

further¬
tha-*

without

what

Knudsen's

what

they

he

didn't know what
with him now that the

wife

A

could

to

do.

for

,

But
•

whose

Mrs.

launched

Roose¬

the

attack against him.
/

[.

.

Dealers

columnist

works

velt has

second

The situ- >

ation won't work out, he says.:

Could
sider

Mrs.
it

Roosevelt

-rebuff

a

days after she
a

Teddy

of

Of

more

the

far
fact

a

her

,

S.

of

management
^dvts+ry.
ers

Army.

Knudsen

employe
in

is

hus--

importance

has the say so over the
tion

few

man

lieutenant

a

the T;

that

con¬
a

that

Bear

general

that

says

bard makes him

to. dc

agitation

left

is

beefing about it al-

are

ready.

New

-

the

office
Neverthe¬

is

specialty

general/

the

job

Knudsen
more.

to

insisted

was

He

is

important job

lieutenant

a

It's

Up?", part of Washington commentators,

The

"f

That's
as

the

on

that

The

get out the tanks and the planes.

up

"resourcefulness."

him.

con-:

Knowing, Lewis as this
writer Bill Knudsen was a
great patriot
does, this article unquestionable and above
all, a greaLproduction.
had something to do with Lewis
genius. He had been q square
peg
making an effort to show his in a round
hole, the commentators

Point,

to

that he about Bill Knudsen,
In spite of
because he- what they had said in the
past /
these
resourceful
man.
commentators
now
safdi

washed

mendously vain

Many lending institutions
ap¬
proved as
mortgagees by v the

their

on

strength

them

(

^

men

their

Lewis does not consider- other

Clapper's conclusion

own

much

as

spot:

Hillman.

that cated
Private capital, both to
save Gov*
,-T^hn
ernment effort and
expense and
maintain

the

in

before

of reporters.

the

go

or

she

and

of

young

gaged

ex-

radio electrical operators'
ganization."

*

also

young
fellows'
Then
when
they

peace

which

an¬

succeed

many

days

Bear." Later,
considerable effort
was-made to keep this out of the
newspapers on the ground that
Mrs. Roosevelt had not

the

what

only

employes of the Departs
Agriculture, had said
Knudsen was just an old
"Teady

•

^han to publicize himself,
and.
which is quite
collaterally impor¬
tant."-to put some of his enemies

built

of the

'n

thing

not

are

removed from

Roosevelt, before
500

They

this

was

general.

there

army

few

a

ment

contro¬

upon

Knudsen

lieutenant

administer the broad purpJses of
will;
/ This
"gentleman, one of" 'the probably fall of its/own weight. OPM, they said. This happy so¬
most astute leaders of the labor
Bureaucracy has,-fed upon bu-i lution' having
been ' achieved,
movement/ seemed to think that reaucracy. As he
puts it, Hitler they've gotten around
to wonder¬
the whole thing was the bunk
and has come to the point where
he; ing just what is
that Lewis w»s seeking no more is
left
of
OPM,
"overly organized."

/

housing

assure

ftew

is

However,, it is

exam-

AFL

But

pow¬

newspaper

Too

the

on

workers'

the

the

a

the

sen was

too

are

They don't

capable

paper

of

:

long

the

against

industrialists

can

one

electrical

or*

that

organizations

accomplishing

come

insurance
orovis'ons of the National
Housorder to

between

They

Knudsen,

The
distinct
impression, is
that the President was
tickled
to death about this
solution.

they will "protect"

instance.

may

work

as

think

clients

"protection"

a

sprung up under the CIO, the

privately

war

try to

that

upon

labor

situation, just

organization in

Housing Administrator
on

these

their

of

have

Washington.

noyances.

leaders

agree

of

idea

jockey¬

importance

can

I

understand

sell

future—pub¬

happen—for

when

amnle,

the

as

to

tablished

/

Ferguson

for

fo

Maguire,

the

^missionaries

pealed to financial institutions to
*et
behind
the
FHA's
current

advantages

finance

dent, Personal Finance
Corn.
Savings Ranks, Harris
Dimn.
President, North River Saving?
Ba^k.
•

pie,

Urged To Finance More
Private Defense
Housing

struction

Fire, marine, casualty, surety,

agents

to

.

going

to

landing Institutions Are

In¬ prvou-it

Co.

is

correspondent'

"Anybody

we

and Industrial Divi¬
also reported
the-'aopo'nt- Z '/"Residentialconstruction / -/in
of 15 Vice Chairmen who America from now.
on
until/ we
will
head
sectiori * uriits' as "fol¬ achieve
victory will be more- and
lows:''"
' * ' "
r "',r' v 4
ron^ned to defense
housing
Commercial banks and trust projects for war
workers," Mr.
companies,
J.
C.
Traoh^cen. Ferguson said. "It is essential

sion,

as

this

and

use

into the
effect:

two

propa*

all

in

men ahead of
him, Mar¬
shall,
chief
of
staff,
and
MacArthur of the Philippines.

inept

publicity

faults, has

came

said,

can't

you

made

industrialists need in the first

which

all labor

They

New York

versy

set-up
it

the

so

Washington

answer.

don't

practically willing to do
anything for patriotism—

best

Tget

" At

ment

President

the

-

Pierson/ 'npf

of the

of

near

the

record

his

can."

In

seemed

are

and

Whereupon,

widely
something

why the indus¬
their

of

thing.

Stimson

"If
I

was

high powered. The high

been

But

a

breach

Eugene

always '
me

powered

ered

the great "peace"
Lewis has pro¬

on

fact, onlyheaded by tne

took

sacrifice
Knudsen,;
few times the
Presi¬

all

done such

one,

representatives.

field.

high

now

a

accepted a quota of $1,500,000, Administrator urged
lenders and
more than, one-fifth" of
the city-* buyers of home
mortgages to use

wide

because

it

with

tne

ganda

/

publicity

4

response

War

urgent.

Federal

of

trialists

which

in" the

most >

Lan

confident that

upon

Cross

1

is

Abner H.

Pierson, Chairman

Finance

are

never

publicity

Regardless

for

;

come

of our
civilian

of

however,

Of Red Cross War Fund
E.

tr as

need

"solidarity''

desires may,
not be easy to achieve.
•
'

Lewis

posed.

"

of

v

*

peal

is

Washington

sort

mainstay

defense. I
count

American affairs

a

measures

can

South

Cross

,

far-flung

-

to

in

Red

has

in

move¬

;

only

the Red Cross is
invaluable welfare" service.

United

denied

are

the

cited

movement

:

Hawaii,

the

privileges already have been extended by

►

not

use,

and

to

the

dent, with

of

story

accomplishment

in

direct contact for the
principles. You ask me if I
American
people with their armed forces, I' am against Hitler. All right,
At all
the
answer
to
that is
outlying bases,, like Ice¬
yes.
land, the Philippines'and /; But 1/ want to know what is

he

of

mean,

that Argentina is

is

commentary

Fund,
*

to

Lewis.

This

licity about how

Charter;

.

course,

;

wrongly,-"

It

among our Lewis' move is
that he wanted to
armed
forces,
but
wherever
get in the headlines.
/
civilian emergencies
may arise,
One labor leader has
as in the
just said
bombings of Hawaif
this to me:
and Manila.
'•<•-/; / • •>/;,/'
By Congressional
/

would be main¬
or

War

equal

of John
z

is. he has

man

ing

stant

that Argentina would
diplomatic ties with the

This

an

many other things
only the Red Cross can
supply must be ready for in¬

Aires,

Tuesday,

the

before,
requirements

said:

the

strange to

being.

Bill

this

as

ever

urgent •
Red Cross

the

Yet

circulated

a

as

of

one

holding out. against
shop. This was not the

out of the steel

that

future

prepared

was

truth.

thought it would be a
cracker jack thing to
take on this
protege of the White House as his
publicity man. But as competent

that

conferences in the Brazilian
capi¬
Acting President Ramon S.
Castillo stated in Buenos
not break

than

now

the

the
politico-social
which-was then in

So

—these and

tal,

*

described

fact

not

were

matter

the closed

were

see

banks built up through the con¬
tributions of millions of donors

the

Grace,

imagina¬

to

Surgical
'dressings, / ambu¬
lances,
medical I care, // blood

to follow

care

States

After

war.

not

greater

Mr. Chester

Thursday. It was plain
start, however* that the

Argentines did

has

the

publicity

Bethlehem Steel,
New
Deal
aespised

a
straight organization
labor; in short, one who under¬

stood

needs of the American Red Cross

S.

gan

Division,

about

Dealers

mind

ment

the Fund's Commerce and Indus¬

try

New

.

men
a

is

of

,

delegation, appealed for
unity in the conflict against the
Axis, when the Rio • gathering be¬

dubious
for the work¬
a

other than

\
Colby M. Chester, Chairman of

upon

the

as

tive

J.

good's assistant.

Outlining

State Sum¬

head

steel

ganizations

•://,

•

announced

tion apd that Robertson D,
Ward,

as

some

/=/./';

Under-Secretary of
ner

but

point

organization

'down,

the
tnat

trying to
get him. in favor of Lewis
because
Lewis was one of their
produc¬
tions, one who had the

Pinney

break'diplomatic rela¬ Treasurer of the Carnegie Corp. of
with the
Axis, and by the New York, would be Mr. Bloody

tions

cut

help, incidentally,

Bloodgood, Assistant Secretary
gan just one week ago now is of the
Bankers Trust Co., would
bogged down in difficulties, oc¬ serve him as
Vice-Chairman. and
casioned by
Washington's deter¬ Coordinator of the Finance Sec¬

Americas

'Hearst

to -be"

Lewis

man

New

the

ing newspapermen in the coun¬
try—the White House crowd
felt

W.

be¬

the

to

A

circulated
among
the re¬
porters and put out the word that

-

New

tne

when the

so,

around

were
had become
impossible to ignore/
issued lit looked for
awhile as if he;was!

both:-'sides

statements.

write what the boss

Exchange, I. that Phil had
always been one I of
Henry Hirsch (President).., \
them at-heart and so
it was sug¬
New York Produce
Exchange, gested
to
Bill
Green
that
he
Charles B. Croften (President),
needecj somebody to. make him
New York Cotton
Exchange, articulate.
At the
time, Bill had
Robert J. Murray^- (President).
no

inevitable than

more

21 American
republics.

de

had

.

New York Cocoa

lost

a

Exchange,
(Chairman),

.

1,09j tons, cii, Monday.
Tne sub•marine Perseus was listed as

Nothing is
"snag' at

Stock

Stott

got

Where

New
York
Curb
Exchange,
George P. Rea (President).
•

admitted

1

York

L.

to

wanted," and
Deal

Dealers Association).;,

omy a lew German aerial raids oi,
British towns were noted.
In the
war
at sea the British
the less of the

who "had

(also President, New York feecuniy

deadlocked,

(Continued from First
Page)
He -was one of those""
Hearst men

Unlisted * security d e a lers y
Frank
Dunne,Dunne & Co.

occasions,
weather condi¬

because

occasion when the conferees

Read & Co:

intervals', this
were

s'bme previous

011

pernaps

tions

raided
"of

coast

•'

*■?'

-

the

is

still
nues-

employer ;
aut^mo-

The New Deal¬

don't like this.

.

•

;

THE COMMERCIAL & FINANCIAL CHRONICLE

336

Thursday, January 22,. 1942

,

Russel W.-.Lynnr submitted at the .outstanding as of
1

meeting, showed:v h ■:* J — -V 1
Total exchanges of $1,157,082,000, an increase \ of $161,638,000
over
the
year
previous. c, Total
bank debits of $4,841,203,000 com¬
pared with $4,186,785,000 in 1941,
The largest, daily exchange dur¬
ing the year was $7,620,922,000 on
Jan. 2, 1941.
-

-,

its

Board

of

that net earnings for
1941 were $1,249,719, a decrease
of $260,186 from 1940, due prin¬
cipally to higher clerical salaries
reported

Jan.; 14 that

on

had

Directors

ap¬

proved several promotions in the
Ken¬

executive staff of the Bank.

Corbin, President,

13, Horace K.

The Chase National Bank, New

York, announced

and lower income on Government

neth C. Bell, G.. Kellogg Rose, Jr.
and
Francis G. Ross have been

At the

Profits from the

bonds and loans.

the

organization meeting of

Board

of
Directors,, of the
Tradesmens, National Bank and
Second $310,595. In the final quarter of
Trust Co., Philadelphia, held on
Vice-Presidents: Alfred W. Barth, 1941, additional compensation was
Jan. 16, the following changes in
Frank A. Conefrey, John W. de- paid to all officers and employees
officers were announced:.
Milhau, Walter E. Dennis, W. Ar¬ receiving less than $5,000 a year,

lowing

thur Grotz,
R.

elected

were

Keiter,

a

Louis

Cashiers:

A.

William S. DuBois, Har¬
Victor E. Rock-

tate

market

voluntary

a

of

showing
1941

Bank

letter

a

the

staff,

owned

U.

S.

the

that

holders

William

S,
Louchheim,
Assistant Cashier,

merly

appointed

Assistant

for¬
was

Vice-Pres¬

ident.

Government

of record at the close of business
Jan.

has

bank

been

26,

;.J.

1942.

the

At

annual

meeting of the
active
during
the shareholders of the First National
making loans covering near¬ Bank of Chicago, held on Jan.
13,
ly every phase of re-armament all
present
directors were re¬
requirements.
; ; y
elected with the exception of Ira
Following the meeting Mr. Cor¬ N.
Morris, who retired because of
bin announced the election of four
ill health.
Hughston M. McBain,
new Directors.
They are: Roy F. First Vice-President of Marshall
Duke, Senior Vice-President ol Field & Co., was elected a mem¬
the Bank; Daniel F. Leary, Viceber of the boards At the subse¬
President of the Bank; Uzal H.
quent meeting of the .-directors,
McCarter, an official of O'Gorman the following f promotions' were
and Young, general insurance, and
made: ■;></
Leslie C. McDouall,
Vice-Pres¬

increasingly
year

,

1
to

Vice-Presidents.T;

of

Mr. Corbin also told the stock¬

De¬
tails of the plan are outlined in a
pamphlet to be distributed to all
employees
and
officers, which
contains also a description of the
Series E Bonds, a copy of the
authorization card providing for
regular deductions from salary,
and a table showing the bond re¬
demption values and yields.
A
feature of the plan provides for
free safekeeping service for em¬
In

part

obligations costing $-35,141,677.

W. Stetson, President.

ployees'bonds.

later

decrease of $976,038 for
The Directors also declared a
$2,088,023 for the last dividend of $1.50 per
share, pay¬
' At the end of 1941, the able Feb.
2, 1942, to stockholders

a

and

two years.

gene

the

in

1941 resulted in
foreclosed
properties

Bonds

by employees of the Guar¬
anty Trust Company of New York
was announced on Jan. 15 by Eu¬

Large, - formerlyAssistant
Vice-Presidents, were elected

during

salary deduction plan for the pur¬
chase of United States
Defense

formerly
Vice-Pres¬

Harold S. O'Briari and James

after

and

Deily,
made

M.

crediting certain re¬
serves, undivided profits increased
$77,462.
Activity in the real es¬
and,

1940

E.

was.

ident and Cashier.

$100.

sales

of

Cashier,

preferred and common stocks

on

hill, Robert W. Scofield, Lowell E.
Ullery and Charles R. Walters.
Inauguration

Howard

of salary and 4% of the

Dividends of $570,000 were paid

Al-

old E. Hardiman,

month

next

as

barracin, Kennedy Buell, William
F. Crook,

to

of the first $150

basis of 6%

a

on

Edgar H. Hall, Ernest
William H. Morton,

The Board also elected

Assistant

amounted

as

Thomas M. Ritchie and George F.
Sloan.

securities

of

sale

The fol¬

elected Vice-Presidents.

Mr.

ident

Stetson announced the plan

"as a
means
both of cooperating with
our Government in financing the
war and of making it convenient
for our employees to set aside reg¬
ularly portions of their salaries
for
the
purchase
of
Defense
Bonds.
While participation in the
plan is wholly voluntary, it is be¬

and

Officer

Trust

of

Forrest N. Williams and Fred¬

the

erick

Bank.
At

the

Newark
tion

annual

meeting

of

the

Clearing House Associa¬

held

Jan.

C.

Murback

were

elected

Vice-Presidents,
having • ■ been
previously Assistant Vice-Pres¬
idents.
//
ti
"'.i.
Clarence

1942, the fol¬
lowing officers were reelected:
20,

elected

President.

President,
Ray
E.
Mayham,
President, West Side Trust Co.;
lieved that the members of our Vice-President, W. Paul Stillman,
National State Bank;
staff
will
welcome
this
oppor¬ President,
David
J.
Connolly,
tunity
to
perform
a
patriotic Treasurer,
President,
Federal
Trust
service and at the same time make Vice
Co.; Secretary, T. L. R. Crooks.
a desirable investment, by a con¬
President, Clinton Trust Co.
venient and automatic method."

W.

was

Vice-

Mr. Weldon for some

has

years

Weldon

Assistant

an

Vice-President
the First-Trust

been

and Manager of

Joint Stock Land Bank of Chi¬

The

Sterling

National

Bank

&

The

elected

Association

S.

cer

Marsh,

Spen¬

Chairman

of

the

Trust

Board

of the National Newark

16

Essex

Banking

Co., New York City, on Jan.
appointed J. Irwin Bobson, Jos¬
eph Downing, and Peter F. Sulli¬
van,

Clarence

Cross

E.

Clar¬

and

the
The

New

York

State

System

has

Bankers

participation the First Na¬
tional Bank of Greenwich, Green¬
wich, Conn., the first bank outside
the State of New York, it was an¬
nounced on Jan. 13 by F. J. Oehmthe

System's

accountant.

The Bank's

participation, effective
as of Jan. 1, brings 30 new mem¬
bers into the System, lifting the
total number of bank officers and

employees

who

are

members

842 and the number of

to

participat¬

ing banks to 71.
At the annual

meeting of stock¬

on
Jan. 13, George P. Kennedy,
President, reported that the Bank
had been active in the financing of

loans

and

1942 would show

that

the

year

large increase
in activity in this item.
The in¬
vestment

a

portfolio, he stated,

divided into:

&

will

retire

ary

was

Government obliga¬

tions, 87.8%; New York City ob¬
ligations, 7.2% ; and Corporate ob¬
ligations, 5%.

as

an

on

"active

Merz

Mr.

officer

has

been

of

numerous

committees since 1930.

Robert G.

an

active

member

officers

were

Vernon C. Bartels, J. Russell
Hanson,
Wyndham
Hasler,
George F. Sisler,. Philip Spar¬
ling, and William H. Wood, As¬
sistant Cashiers; John R. Mit¬

numer¬

month, was elected Honor¬
Chairman of the Managing

Committee.

were

Vice¬

the clerical staff of the bank:

Clearing

H. Merz, Vice-President
Fidelity Union Trust Co., who

next

for¬

,™.".

The following new

Oscar
of

Assistant

elected

-Presidents.—

committees continuously since

Cowan,

..

chell, Assistant Manager in the
Real Estate Loan Department,
and Robert S.; Swaim, Assistant
Trust Officer.
.IJ'Sx ,> v -i.

;

Clearing House Committee for

a

the

annual

stockholders

of

-

meeting
the

of the

Industrial

-

National Bank of Chicago, held on
June 13, ■ Calvin Fentress,^ Pres¬

Mayham

of which the major
sented

of four years.

reappointed

Mr.

counts.

The

portion repre¬
checking ac¬
volume, on the

and

demand

loan

Bank's

...

_.

..

Licklider
years
more

was

investments.

Mr.

associated

ten

for

with Blyth & Co., Inc., and
recently
with
Harriman

Ripley Co., Inc.
.At the annual meeeting of the
stockholder

of

Fidelity

Union

Trust Co.,! Newark, N. J., on Jan.




of the original

was one

The American Trust Co., San
Francisco, according to Blyth &
English Walling was elected to Co., Inc., had operating earnings,
fill
the
vacancy.
Mr. Walling, after
depreciation
and
after
who is Secretary of the Bank, is amortization of securities, of $1,the son of Willoughby G. Walling, 818,575 for the year ended Dec/
who served as President of the 31, 1941, equivalent to $12.12 per
Bank for 17 years prior to his share of preferred stock and $4.05
death in 1938..
per share of common stock. Com¬
parable operating earnings for the
At their annual meeting held on year
ended
Dec.
31,
1940,
to
Jan. 13, stockholders of the La amounted
$1,855,704,
equiv¬
Salle
National
Bank,
Chicago, alent to $12.37 per share of pre¬
voted to increase their Board of ferred stock and, $4.15 per share
Directors
from
nine
to
eleven of common stock.
Non-operating
members
by electing Harry L. earnings, including recoveries and
Drake, head of the Chicago real profit on sale of securities, for the
estate management firm bearing year ended Dec. 31, 1941, were
hi sname, an dNathaniel Leverone, $1,25-3,868, bringing total earnings
Chairman of the Board of the for the period to $3,075,443, equiv¬
Automatic Canteen Company, ac¬ alent to $20.50 per share of pre¬
cording to an announcement by ferred stock and $7.40 per share of
Laurance
stock.
Armour, Chairman of common
Non-operating
the Board. - All retiring directors earnings, including recoveries and
were re-elected.;
profit on sale of securities for the
During the first calendar year year ended Dec. 31,1940, amounted
under
new V management,"
Mr. io $557,337, bringing total com¬
Armour stated, "the institution's parable earnings for that period
rank among all banks in Chicago to $2,413,041, equivalent to $16.09
moved from 3 ist place to 22nd per share of preferred stock and
place." At the same time, in its $5.63 per share of common stock.
new location, the bank showed a Further advices stated:
satisfactory profit after adequate
$300,000 of current earnings
reserves
and operating expenses.
for the year ended Dec. 31, 1941,.
We" are naturally gratified with
were
carried
to
undivided
this progress which substantiates
profits account; dividends of
our
decision in moving the bank
$900,000 were paid out during
founded in 1917.

.

...

,

.

.:

.

.

the

into

district

a

heart
little

of

the
a

over

Formerly known

as

financial

the

period; and the balance of
earnings in the amount of $1,-

ago."

year

875,443

the National

the

Field

building Nov. 12,

location,

creased

more

deposits

1940.
in its

have

'

on
Dec. 31,
$13,621,000.

in¬

are

m

U.

insur¬

their annual meeting in
Francisco/ received a report

at

dicating

all-time

magnitude
war

of

effort.

mittee

of

and

members

to

the
the.

as

on

the

common

stock

the

Total

Total

ing 1941, loans and commitments
specifically for war purposes en¬
abled borrowers to finance an

at

the* end

of

at

an

resources

are

high of $399,307,993.

resources

of

Barclays

Bank

Limited, London, one of the
"Big
Five" banks of England,
estimated $1,500,000,000 in defense reached an all time high of £685,contracts, with activity showing 166,024 at the-end of December,
rapid acceleration in the closing 1941, according to cable advices
months of the year.
In addition received by "C. A. Gingell, the
the war effort was aided through bank's
representative
in
New
of loans of other types.

report showed

.

compared

and

Dur¬

I York.

Deposits are reported as
£645,185,396, representing an in¬
crease
of over £98,000,000 com¬

than 2r
accounts on the
more

pared with the end of 1940.
This
figure is the highest amount in
the long history of the Bank.
On
the asset
side, the main

-

reappointed Robert G. Cowan

held

securities

1940!

the

bonds

pal bonds, and other bonds and
securities, total $113,455,910, an
increase of $10,524,171 over the

.

Chairman

Government

S.

notes, state, county and munici-

from President L. M. Giannini in¬

Bank's aid to the

condition.

a

•

Stockholders of Bank of Amer¬

ica,

of

statement

represents

gain of $42,757,673 for the year, and of $24,592,624 for the last six months.
Loans, likewise, show an in—crease,
being currently $ 172,^
107,577, an increase of $15,340,189 over a year ago, and $11,894,014 over the June 30 figure*.
Cash totals $99,250,055.as. com¬
pared with $79,880,717 on Dec.
31, 1940, and $99,692,094 on June
30, 1941.
Securities, including

1941, which

financing, and
financing.

Deposits

end

premium

ance

.'"'V

This

Loans and discounts, too figured
prominently in the gains. During
the same period, loans increased
by approximately 106%, amount¬
ing to more than $4,178,000.
A
contributing factor to the latter
gain has been the installation of a
personal credit department offer¬
ing personal loans, auto loans,
automobile

various

of $365,717,758
reported in the Bank's year-

high.

according
to figures released at the end of
totaled

to

Continuing its steady growth,
American Trust Co. again reports deposits at an all-time

than 88%

business

added

.

LaSalle National Bank moved into
Since opening for business

was

reserves.' ;

Builders Bank before present in¬
terests acquired its control, the

President, of Fidelity Union Trust
The net earnings for .the year 600,000
deposit
Co.; William Dunkel, Vice-Presi¬ amounted to $257,003 compared
books, an increase of 200,000 dur¬
dent and Cashier, of Union Na¬ with
$228,629 in 1940. These earn¬ ing the year. Operating expenses
tional Bank in Newark; Carl K.
ings, after payment of dividends of $48,000,873 took about 63 cents
Withers, President of Lincoln Na¬ on
the
outstanding
preferred of each gross income dollar com¬
tional Bank.
The President also stock, amounted^to $4.27- per share
pared with about 61 cents in 1940,
caused

mainly by

a

items

are

as

follows:

Cash

in

rise of $2,141,- hand and with the Bank of Eng¬

Advisory Com¬ with $3.67 per common share in 905 in payroll expense. Taxes and land, £70,617,710; balances with
following other 1940, based on the same relative government assessments amount¬ other British banks and checks in

serve

in

1942:

G.

bond

Donnelley

,

,

directors of the Bank when it was

Stillman, Chairman of the Man¬ other hand, was slightly under the
aging Committee, to serve with total for 1940, due in some meas¬
the following other members for ure to regulations in time financthousands
1942; Roy F. Duke, Senior Vice- ing. '
•"
The

capitalization,

-

...

.,<■■■.

Ralph
W.' Crum,
Dividends paid on the preferred
Green, President of
President,
New- York—Savings Bank, New United States Trust Co.; Stanley^ stock in 1941 amounted to $43,126.
York City, announced on Jan. 15 J.
Marek,
Secretary-Treasurer, Dividends paid on the. $20 par
that William B. Licklider has been Franklin Washington Trust Co.; common stock totaled $125,000, or
Thomas
C.
appointed to take charge of the
Wallace, Executive $2.50 a share.
... • Wm.

was

,

San

At

President " of
National
Newark
&
Essex
Banking Co., ident, reported that the deposits of
was
elected
a
member
of
the the Bank had increased $700,000,

Mr.

holders of the Lafayette National
Bank of Brooklyn, New York, held

defense

also

1922.

term

"

the

House and has served
ous

admitted

into

ichen,

Eichenberger,
merly Assistant Cashiers,

Honorary elected, all being promotions from

as

Clearing* House

of

organizers

R.

ence

Committee. Mr. Marsh-was one of

Assistant Cashiers.

Retirement

Co.,

Chairman'*of the

It

new

cago.

-

•

Janj,31;. 1942, to by issuance of long, term Govern¬
ment
obligations
during
this
v:!v/
r
pointed out that $150,000 period.of low interest rates. Shortterm financing he said, should be
was transferred to surplus in 1941,
bringing the surplus account - to reserved as far as practicable for
emergency purposes.
$1,250,000.
■
'
,
"Bank of America, with its 495
/The stockholders re-elected all
of the present directors, with the branches, its entire resources and
its
exception of Thomas E. Donnelley, facilities,
management
and
Chairman of R. R. Donnelley & staff, will lend every possible sup¬
Sons Company, who desired to-re¬ port to our supreme national en¬
tire
from
active
service.
Mr. deavor," Mr. Giannini concluded. *

$700,000.

Vice-President, West Side

ing

$8,227,406
high level.

to

new.

President
there

Giannini

would

problems

were

for

at

of

collection,. £27,815,693;
at call and short notice,
£24,917,550; bills discounted £40,343T43T;-treasury deposit receipts,
£ 152,000,000; investments
£ 168,219,935, of which, amount £163,102,473 represents securities of or
guaranteed by the British Gov¬
course

a

monev

emphasized

be serious

both

also

post-war

Government

and business to face and that their

Trust
the
future
economy
During the year, 1,000 shares of effect on
Co.; C. LeRoy Whitman, Vicepreferred stock of a total par could be gauged only to a reason¬
President, Fidelity Union Trust value of
He
expressed the
$100,000 were retired. able extent.
Co., and Francis R. Steyert, Pres¬ Mr. Fentress
reported that the di¬ hope that much of the expense at¬
ident of South Orange Trust
Co., rectors have recently called for tendant upon the war would be
to represent special members in
retirement as of Jan. 31, 1942, an met by a forthright taxation pro¬
adjacent suburban towns.
additional 2,000 shares of preferred gram-designed so as not to be
The annual report for 1941 of stock, par value of $200,000, which oppressive to the point of drying
the Manager of the Association, will reduce the preferred stock up the source of tax revenue, and

'

ernment.

The

investments

showed
000

and

an

increase

of
of

the

Bank

£47,000,-

the

treasury deposit re¬
ceipts an increase of £84,000,000
compared with the correspond-

as

ing figures at the end of 1940.

i

THE COMMERCIAL & FINANCIAL

Number 4036

Volume 155

337

CHRONICLE
$2,100,000,000.

Earnings Of Chase National Bank Advanced
In IS4I, Chairman Aldrich Announces
$3.91 On Common, President Gibson Reports

Manufacturers Trust Go. (941 Earnings
Harvey
Jan.

Gibson,

D.

Winthrop W. Aldrich, Chairman of the Board of the Chase Na¬
told stockholders at the annual meeting

Trust Co.,

President of the Manufacturers

tional Bank of New York,

of stockholders on

City, reported at the annual meeting

New York

from

14, that net operating earnings, not including net profits
sold or other assets disposed of during the year

1941,

securities

that to meet the challenge of war will require the Ameri¬
people to forego "business as usual."
American industry will

Jan. 13,

on

can

meet the

test, he said, provided that the Government is able to so
organize the effort that the full power of industry can be promptly,
penses and taxes, and after deducting dividends on preferred stock
efficiently and continuously ap-«^
outstanding, as well as the totalsto implement that demand with
The war will
In discussing changes in busi¬ plied to the task.
amount set up for amortization on
the economic power to satisfy
be won by the unity and devotion
bonds purchased above par, had ness conditions resulting from the
of civilians matching the strategy
it—that is, to provide the peo¬
amounted to $6,446,236 or $3.91 war, Mr. Gibson said:;
and heroism of the armed forces,
ple with the means to buy the
per
common
share,
compared
Before we entered the war
he declared.
things they are sure then to
with $3.92 per share in the year
industrial
production, due to
"To overtake the head start of
need and want.
1940.
•••:••'
defense and lend-lease needs,

but after all ex¬

charge-offs or additional reserves set up,

before

■

Of this total

dividends

in

$3,299,838 was paid
common
stock¬

proportionately
already
attained dur¬
ing the World War. The present
objective of the Government
seems to be,
however, at least
to treble as quickly as possible
the volume of defense material
which was
produced in 1941.
We have consequently scarcely

had

to

$2,342,239 was credited to reserve

•"'■-"'V;
-A* A
"•Net
profit on securities sold
during 1941 amounted to $1,465,'/V"

Recoveries

570.

items hereto¬

on

$665,-

totaled

off

fore

charged

140.

Both of these amounts were

credited to
at

items

$190,242.01;
of
which
amount
$181,064.65 was charged against
reserves previously set up.
The
bank charged down or set up re¬
serves against bank premises and
safe, deposit
vaults aggregating

$715,858,

three

first

quarters

manufacturers

Such

more.

as

to reserves, and during
last
quarter
was
charged

charged

pleted

amounted during
to $621,941. This amount

re-credited

was

to

direct

un¬

profits at the end of the

divided

year.
Mr. Gibson

pointed out the in¬

real

the bank's
gross operating income for 1941,
over 1940, the net income after all
expenses, taxes, insurance, amor¬
tization, etc., was just about the

avoided

of $2,100,000 in

for each year.

same

cost

of

can finance its tremenundertakings
will
be

sale of Defense
Bonds, and we must buy them

d

o u s

the

to

payments and fees for
Federal Deposit Insurance were
$500,000 greater; and the
net amount of amortization of
bonds
owned was greater by
almost

$1,075,000.
These amounts more than

made

the total difference. Attention
called to the fact however
that amortization of the premium
on
bonds purchased above par,
which in 1941 amounted to $2,779,202
in
effect
reduced by that
amount the book value of the se¬
curities
owned, and while de¬
ducted in full from gross operat¬
up

>

has bettered
to an equal

extent

Gibson

Mr.

stated that the ag¬

of

extent

abil-

our

.-Unsettled
ahead

of

times

us

for

are

fact

in

to

years

many

month

of

compared with a year

last, as
ago, of ap¬

proximately $53,000,000, or 29%;
and if compared with December,
1939, two years ago, the

increase
48%.

is

in the character of the
portfolio during the year.
Such activity as has taken place
has for the most part been con¬
fined to United States
Govern¬
ment
securities.
The
maturity
dates ofHhe bank's -holdings and
United
States
Government and
Government guaranteed bonds at
changes

bank's

the close of the year were as

fol¬

lows:

Bonds
from

one

presented

maturing

to five years

years

callable
hence re¬

approximately

of the total holdings;
ten

or

48^4%

from five to

24 V2%; over ten years

271/4%.




the

as

war

sources

and

with

ness

will

their

attendant

stalled
full

as

loyal

the

realization

tempering

by

as

thrift whenever

it
of

purpose

The

wheat

under

of promoting
American war effort, they

the same purpose
the
are

quite different in their eco¬
effects on the country.

nomic

and

Reliance upon

with

credit to

loan

tion.

Loans

in
to

public

the

made

in¬

270,624,404

produc¬

remain outstand¬

retired in due course
of taxes and
Government loans. And if these
loans are purchased out of sav¬
ings and investment funds, then
the dangers of inflation inher¬
ent in so great a program of
Government spending are much
ing but is

from

warehouses.

on

Credit used to finance in¬

dustry engaged in war

date last year

same

tends to bring about infla¬

tion does not

110,785,524 bushels stored
farms and 233,061,871 bushels

stored

commercial bank

finance war expendi¬

tion, whereas the use of bank
credit to finance industry di¬
minishes the chances of infla¬

cludes
on

r

the proceeds

reduced.

that "we must' look
at the present" but must
also plan for the future, Mr. AidThe Department of Agriculture
rich said the central problem then
reported on Jan. 6 that Com¬ will be to maintain employment
modity Credit Corporation had during the transition from war to
made 7,420 loans, in the amount
peace. He further asserted:
of $5,719,313, on 7,891,660 bushels
We shall have an immense
of 1941 crop corn through Dec. 27,
made

to

date

have

averaged 72.5 cents per bushel.
The
rent

loan
corn

program
crop

was

the cur¬
announced

on

Nov. 18, 1941
page
corn

(see issue of Dec. 4,
1351). Under the program all

pledged

loan is stored

as

collateral

on

the farm.

for

investments

mgher in

on

was

1941 than

1940.

The bank's branches in London,
Aldrich reported, continued

Mr.

function

to

though

during

handling

Branches

in

the

less

year,

business.

Canal

the

and

Zone

a

piled-up demand for goods, not
only to fill the gaps caused by
the deprivations and wastage of
the war years, but to catch up
with the growth we would have
had
if the war had not oc¬
curred. The demand will exist,
unchartable now and in endless
variety.

The

problem will be

of

the

the

Bank

duty

on

maximum

that

he

because

as

United

Directors.

is

on

was

con¬

active

in

rise of more than

a

$1,-

the

Bank's

of Dec.

as

reported in

our

is¬

of Jan. 8, page 133.

Ecker Resigns From

Metropolitan Life
The resignation of Frederic W.
Ecker

as

Vice-President

and

of

the

Metropolitan

Insurance

lowed

re¬

Reserve.

National

statement of condition

sue

be

not

he

Naval

Chase

31, 1941,

were

Astor, who

commander

a

States

The

de¬

This decline, which fol¬

#941.

of

elected except Vincent
sidered

National

below

Board

All the former directors

$4,158,000

posits reported as of March 31,

Co.

to

rector

devote

his

Di¬

Life
full

309,000,000 in our deposits dur¬
time as Special Assistant to Lending the two years 1939-1940,
Lease Administrator E. R. Stetoccurred despite an increase in
our
loans and investments last tinius, Jr., was announced on Jan.
14 by Leroy A. Lincoln, President
year.
The experience of the
of the company.
He assumes his
Chase National Bank in this re¬
new duties today
(Jan. 15) with
spect was
similar to that of

headquarters in Washington.

other New York City banks.

and

banks

Dec. 31,

to

on

of

discounts

—Loans

$802,221,000,

the

1941, amounted
an

of

increase

$138,032,000,
or
21%, over the
previous year-end. Almost all of

Mr.

increase,

Aldrich

ex¬

plained, took place in commer¬
cial, industrial, utility and agri¬
cultural loans, reflecting the de¬
mand for funds required directly
defense

national

the

in

program

Born iri

Brooklyn, N. Y., shortly
ot the century, Mr.
Ecker is a graduate of Harvard
University, where he majored in
economics.
Following
World
War I, in which he served as a
first lieutenant, Mr. Ecker began
the
practical study of finance,
starting as blotter clerk in a secur¬
before the turn

ity

house.

assistant

to

He
the

became

soon

manager

of

the

bond

department.
Seeking wider
business activity
stimulated by that program.
He experience in his chosen career,
said that the bank's
direct de¬ he obtained a position with a trust
handling its
security
fense
loans
outstanding at the company,
end of
the
year
approximated sales. In 1925, at the instance of
$50,000,000,
and
that
commit¬ the late Haley Fiske, then Pres¬
ments had been made to lend an ident of the Metropolitan, he was
in

or

general

additional

credits

in

•

$43,000,000,or total
of $93,000,000.

excess

Commenting

holdings

of

bank's
$1,364,847,000
of
the

on

United States Government

securi¬

offered

and

Assistant
ance

He

company.

Treasurer in
was

accepted the post of

Treasurer

of
was

the insur¬

appointed

1931, and in 1936 he

elected Vice-President and

member

the

of

Board

of

a

Di¬

of Dec. 31, 1941, or about
rectors.
As Vice-President, Mr,
36% of the bank's total resources,
Ecker has been in charge of the
an increase of about 29%
in such
handling and supervising of Met¬
holdings in the year, Mr. Aldrich
said
the
average
maturity
of ropolitan investments.
ties,

as

these

holdings

was

four years and

months, or two years and ten
months if computed to the near¬

ten

est call

In

Warning

Loans

divi¬

received

interest

and

loans

consiaeraoiy

in

31, 1941, amounted to $3,-

000

age

not only

1941 Corn Loans

1941.

bank

534,967,000, a figure which is
about $8,000,000 below the total
a year ago
and about $83,000,-

the

■'

both of these types of

is, the purchase of Treasury
obligations and the grant of
credit to war industries—serve

ture

549.

bank credit for

that

fore¬

spending
possible.

to do

industries, Mr. Aldrich's re¬

be by

facts

of

amount

these

reported the fol¬
the bank's deposits:
deposit
liabilities
of

Chase

Dec.

goes

lending by commercial banks,—

war,

busi¬

be

can

war

great part in carrying the
through to a successful end."

While

re¬

hardships

should

much

any

$40,370,000

on

the

disposal of the na¬
The banks stand

With respect to

Consequently, it is
utmost importance that

aftermath

this

a

of

war

ensue^

the

of

dislocations

new

of

27%

was

year

interest rate earned
fractionally lower than in
previous
year,
aggregate

was

profs. Dec.

Total

appropriations

port added:

$76,000,000, or
had
been
Mr. Gibson informed the stock¬
bushels.
holders that there have been few

shown

in

firm

war

of its available
in carrying on the

on

average

Aldrich

lowing

do this, he explained,
only because of their match¬
less capacity to lend or because it
is
their
duty,
but because
as
American institutions they "are

gregate of all types of loans has
1941 Wheat Loans
during the past year continued to
increase
in
a
most gratifying
The Department of Agriculture
manner.
Loans in the bank's gen¬
reported on Jan. 6 that through
eral banking and industrial credit
Dec. 27, 1941, Commodity Credit
departments,
which
constitute Corporation made
500,717 loans
over
86%
of
the total loans,
on
343,847,395 bushels of
1941
showed an average increase for
wheat in the amount of $338,014,December
the

war.

ment. The world will have used

most

Mr.

to

for reconstruction must
repair the destruction caused
by the war. There is bound to
follow
a
period of readjust¬
come,

up

reason,

that

in

divs

31, 1941

not

ity.

was

ing earnings, really
the bank's position

full

the

at

at

tion

through. the

creased about $550,000.

the

as

ready

country

1941

volume

For
and despite the fact

this

requested

Congress are translated into
contracts, the banks will be called
upon more and more to put their
credit

of

Undivided

of

by taxes, the only way that our

in¬

Tax

and

on

than

in mincf that" other

keep

This was ac¬

operations

We

means.

earning assets last

..

He stated that

must be
possible
should^ constantly

"

counted for in the following items.
The

thereby

and

called for.

danger, and it
by
every

for 1941

earns,

excess

its1 fore¬

which

mastered

fathers

Inflation is a

for their money.

in

Average

greater than in 1940, he said.

$1.83 per share in
for the pay¬
semi-annual

increase

income.

net

bers

Net

gen¬

earners

teresting fact that, despite an in¬
crease

but

erations,

.

profits

the year

not known for two

it has

stocks.

wage

or

two

gross in¬
Aldrich emphasized
importance of the loans and

Mr.

investments

aid

But employed
became the builders of the nawill, be earning
•'.. tion.
.A'.///;./• .■/,'
more money than they have for
Compared with the task which
many years, and they will be
under
great
temptation
to American industry faces, the fi¬
spend. It is to be hoped, how¬ nancial problem is secondary, Mr
ever, that they will resist the Aldrich said, adding that there is
temptation.
For the more they no doubt whatever that the money
spend, the higher will prices needed to finance the national
rise, and the less will they get undertaking, will be ready when

against undivided profits, in the
amount of $179,000. Recoveries in
the Foreign Department on items
heretofore
charged against un¬
divided

wholehearted

of

thbj increase in

obligations.

Analyzing the bank's
come,
the

1940. After providing
ment

in¬
cor¬

holdings of cash and

Lroveinment

1941,

year

$13,550,000,

public which will face realities

ficulty in replenishing their de¬

the

this

of the

earnings

the bank's

Mr. Aldrich
said, amounted to $14,518,000, or
$1.96 per share, compared with

;

.

net

the

with

dends of 70 cents per share each, in
Panama
experienced
rapid
given cannot be doubted.' there has been an increase during
growth in business. Operations of
But
in' giving
this
aid
the 1941 of $4,158,000
in the un¬ the Chase Bank, wholly owned
American
public will
forego divided profits account, as shown
affiliate
of the
Chase
National
business
as
usual, will
gain in the following table:
Bank, which operates branches in
smaller
net profits,; will
buy
France and in the Far East, car¬
Undivided profs. Dec.
war
bonds, will ride less and
31, 1940
$36,212,000 ried on operations under great
walk more, will demand and
Net earns, for year '41
14,518,000 difficulties,
the
Chairman
re¬
obtain fewer comforts and con¬
Less: Divs. decl. dur¬
ported.
veniences.
It will not go hun¬
ing year 1941—
J. Frank Drake, President of
gry and it will not lack for
$5,180,000 on June
the Gulf Oil Corp., and Carl J.
clothing and shelter. Neverthe¬
25
ahd
$5,180,r
Schmidlapp, a Vice-President of
less, for a space of time, per¬
000 on Dec. 24_
10,360,000 the bank, were elected new mem¬
haps for years, the .American

plants to some form of defense
production are bound to suffer
hardship, and many of their em¬
ployees will, for a time, find
themselves out of work. ? Re¬
tailers will also have great dif¬

during the
of
1941,

He added:

That

their

convert

readily

cannot
>

The

for

responds

will be

be

will

proportionate

the

amount of which was,

ple."

itself, normal production
dislocated more and

lishes

Aldrich

hearted aid of the American peo¬

place in our business life.
As
a complete war economy estab¬

disposed of miscellaneous
an aggregate net loss of

bank

Powers,"^jJVIr.

dustry, which even it can bear
only if it receives the whole¬

begun to feel the full effect of
the
change which must take

accounts. The

reserve

Axis

said, "puts a burden on the unequaled capacity of American in¬

reached the peak

holders, $804,159 was credited to
undivided
profits account, and
account.

the

Thus
the
deposits roughly

in

crease

dates, and that the aver¬

yield was 0.59% in 1941.
connection With

the

figures

deposits and holdings of Gov¬
ernment securities,
Mr. Aldrich

on

No Savings
In view of

Confiscation

rumors that
planning to
confiscate savings accounts, Secetary of the Treasury Morgenthau
on
Jan. 12 entered an emphatic

the

recurring

Government

denial

that this

was

was

so.

"I wish

pointed out the following "note¬ to state most emphatically that
worthy tendency, characteristic of there are no foundations whatever
banking
experience-- in
recent for such
rumors," Mr. Morgenthau
years:

.

in June, 1932, when
the bank's deposits stood at the
Starting

"

low

point for the decade, depos¬
$2,200,000-

its have risen about

000

to

the

present total.

Dur¬

said.

"The

Federal

Government

does not have under consideration
any

proposal

fiscation

of

involving the con¬
savings deposits of

this country for any purpose.

the
same
period
the
"Furthermore," he added, "any
holdings of United States Gov¬ one
circulating rumors of this
ernment
obligations and
the
character is
acting against the
item "Cash and amounts
due
from banks" have risen about welfare of the Nation."
ing

THE COMMERCIAL & FINANCIAL CHRONICLE

338

City Bank Chairman Reports
1941 Earnings At $17,721,122; Activity Up

In his report to shareholders at
Gordon S. Rentschler, Chairman of

the annual meeting on Jan. 13,
the Board of the National City
Bank of New York, stated that the surge of activity in 1941, occa¬
sioned by increasing national defense expenses, increased indus¬
trial production and additional employment of workers, stepped
.up the whole tempo of the bank's operations.
77
With respect to the outbreak of^
the war, Mr. Rentschler said:
reported that the bank's policy of
The spirit of the nation was contracting its overseas organiza¬
fused into unity

and focused on

objective—the
winning of the war. Every persingle

a

;
v

^

great

tion in threatened areas was car¬

forward

ried

the

in

and institution is now being

son

test, both
to specific duties

respect

related

the

to

their

and

war

•

general responsibilities as
essential part of the coun-

more

7

an

try's economic life.

;

-

that

Henry Bruere, President- of the
State

Bowery Savings

'*

the

v

-

.

'

7v77
totaling $6,200,000
-

in

the

from

bution
of New

the

City Company

York, Inc.

new

year-end," capital stood
at $77,500,000,, surplus at $77,500,000, and undivided profits at
$17,891,093.
; ? '
:
We continue to follow
servative

con¬

policy in valuing our
further recoveries

and

assets,

reasonably

may

a

be

expected.

that of the rest of the world

in

job

wit¬

ever

by

cash

of the

war

is

reserved

against.

losses

said

that

The

keep

needs and

worry

away

financial

personal

before

bank's

the

when all their mental and

clos¬

ner¬

tained

reserves

levels

at

main-

are

which

be¬

we

lieve

adequate, and are larger
than a year ago. As in previous
years, these are deducted in ar¬
riving at the asset figures which
appear in our published state-

•

ments.

Interest

and

for

discount

about

87%

ac¬

of do¬

mestic income other than profit
the sale of bonds and se-

on

■„

curities.

.

ments

Interest

and

from

interest

both greater

were

though

average

invest¬

from

loans

than in 1949,
rates
were

the

saving

the

and

use

of

not

saved

'

approved housing or gov¬
ernment bonds, each depositoris

saver

of

taxes

constituted

the largest increase in expenses,

including
Federal

$925,000
and

for

more

State

taxes, and
$384,000 additional Federal Deposit
Insurance.
Our
total

.

.

assessment for

,

was

.

over

Mr.

.

The National City

Rentschler

1941

that

York

banks, ceased their upward
movement
about
mid-year and
down.

they

were

as

year

added,
tion of

At

the

at about the

before.

was

due

year-end

same

level

The change, he
to a near cessa¬

gold imports,

an

increase

in the

use of
currency, and an out¬
flow of funds from New York to

the interior.

Comparative distribution of de¬
posits of the bank at the year-end
is shown

in

the

following table:

Dec. 31. 1040

Thrift Oth.
•

Dec. V. 10*'

Ttl.

Thrift

Oth. Ttl.

——(In millions of dollars >Head office

10

1,753

1,763

720

848

10 1,709

1,719

Domestic
Branches 128

'Foreign
Branches

Total

condition

Third, we can educate the
public in how to protect them¬
selves against inflation by prac¬
ticing thrift; by saving instead
of spending.

of Jan.

Mr.
that

educational

tion of
011

disclosed

ings

report explained these

"

51

189

125

758

883

246

of

ities

297

2,719 2,908

34

243

277

169 2,710 2,879

Regarding the National City's
foreign operations, Mr. Rentschler




$482,548

and

respectively, which
ferred to

$491,676

were

trans¬

recoveries,

and

year,

all

transfers
added

paid

were

reserves

undivided

were

profits,

tained

by

mission

President
Jan.

James

appointment

the

9

Mayor F. H. LaGuardia is
national Director of the OCD and

two

Rule

existing
and

N-

rule,
provides

new

N-8C-2

ment

Company Act of copies of
already filed under

7 material

other

statutes

administered

the Commission in- lieu of

paramount

statement

a

by

reg¬

Form

on

plant and equipment facili¬

NY Reserve Bank

produce
in the

the needed expansion
output of munitions.

Staff Promotions
The

of

the

Exchange elected six

ernors

to

two

serve

annual
the

balloting

successful

on

8.

candidates

G.

were

Garrett

B.

of

Jan.

9

has

Directors

its

Buffalo

Branch, effective im¬

mediately.
At the Head Office

All

Edward

O.
Douglas, formerly
Personnel Department,
has been appointed an .Assistant

were

Manager,

Reelected to the Board of Gov¬
ernors

of

Board

of

Bank

on

a

regular slate nominees.

fense.

its

Reserve

announced

made the following changes in the
official staff of the Bank and of

for 1942 in

Jan.

York

that

gov¬

and

years

Federal

New

Chicago Mer¬

of nominating committee

M.

adop-

for the filing under the Invest¬

business, and

cantile

Roosevelt announced

amended

N-8C-2.

civiliza-

suddenly become
the
production of munitions is

Members

Executive Of The OCD

.777

the

rules, Rules N-8B-2
45A-1, and adopted a

Chicago Mercantile
Exchange Governors

Dean Landis Is Named

the

applicable.
be ob¬
Regional Of¬

r""tion "oFFdrm N-8B-2~ theUom-

men

ties must be fully coordinated to

important part of America
are designed to

7 serve.

~

:

may

In connection with

institutions

our

on

our

copies

from

industry.
Our
istration
technical knowledge and skill,
our
supply of manpower, and :7: N-8B-2.
our

-

?

fices of the Commission.

War has

greatest

our

gether to make the mutual sav¬
ings banks
of New York a

Landis, Dean of the
Harvard Law School, as "execu¬
after tive" of the Office of Civilian De¬

either

earnings

to

to

in

lost

or

American7 business

mass

tireless weapon in the
defense
and
strengthening of

which

also added to reserves. No

dividends

won

business, and that is
the .shocking truth about which

our

strong,

were

The totals do

reserves.

include

not

Vice-President of the

Shawhan

Bank.

>

William A. Heinl of the Person¬

B. Shawhan

Co., President nel Department, has
being
been
ap¬
with "perfect¬ of the exchange; Thomas J. Ryan pointed an officer of the Bank
of
Beatrice Creamery Co.; and
with the title of Manager, Person¬
ing the organization" throughout
surplus remain at $10,000,000 the country. Under the partial Max Weinberg of Weinberg Bros. nel
Department,
& Co. New governors chosen were
each.1 v
7)-7
1 reorganization of the OCD. Mr.
At the Buffalo Branch
associated
Landis, who will receive $10,000 Maurice-/Mandeville,
The volume of personal and
a year, will devote his
Reginald B. Wiltse, formerly
full time with Fahnestock & Co.;. Frank

bringing that figure at the

end

to

$5,830,103.

will

year-

Capital and

continue

in

that post,

mainly concerned

.

corporate

trust

creased

most

in

the amount of
tained

business

in¬

categories and
business ob¬

new

during the

couraging.

year was

en¬

to

administration

The

appointment

of

the

Office.

is believed

have | been brought about by
criticism of Mayor LaGuardia

Priebe of Priebe & Sons, Inc.; and,

it

had

:

been

-

on

the

his

name.

a

nothing in the picture
justify

dend rate."

a

cut

aging- Director

-7-———

——

Branch.

Officers of the exchange for the
for
trying: to direct civilian ; defense ensuing year will be named by the

carefully

in

now

the

is

that
divi-

the Securities and

mission

1934.

in

Chairman

of

the

Exchange Com¬
He was made
SEC. in

1935,

holding the post until 1937, when
he

was

T.aur

-made Dean of the Harvard

Qr>Vl nrU

Pierce, Fenner & Beane; Joseph
J./Fox of the Peter Fox Sons Co.;

Henry, Gatlin
and C. C.

&

.

of

„

Dauber.

.

Mr.

of

the

Wiltse

Buffalo
succeeds

Robert M.

O'Hara, who retired as
Managing Director at the close of

'

planned basis and that "there
would

Assistant Manager of the Buffalo

to Joseph Godow of the firm bearing Br.anch; has been appointed Man¬

] and still continue in his New York governors following the mart's an¬
nual meeting Jan. 19. Elected to
In reply to a stockholder's
post.
7 '
"
" "
ques¬
committee were
Mr. Landis was a member of the the- nominating
tion on the National
City's divi¬
Federal Trade Commission in 1933 C. S. Borden of S. S. Borden Co.;
dend policy, Mr. Rentschler said
Frank Darby of Merrill Lynch,
and 1934 and became a member of
that

'

'

>

earn¬

secur¬

be

Additional

•

hope that we shall find con¬
tinuous opportunity to work to-

the

profits from the sale of

will

tion.

-

-----

•

been sent to all unit investment

This World

us.

pends the future of

I

follows:

as

The year ahead,

certain

trusts to which it is

ing, and thinking while they are
acting, because upon them de-

be

re¬

Copies of the form, which is
known as Form N-8B-2, have

American

•

including

-7 tificates.

scale.

running against

else,

compre¬

with

ation, lapses, etc. of trusts issu¬
ing periodic payment plan cer-

produc¬

scale, but with the great¬
possible speed, for time is

War

requires

information

formation,

vast

est

form

over-all experience tables as to
volume of distribution, termin¬

is to

now

mass

of

mission of detailed financial in¬

We must do it not merely on

pro¬

each
day of it, will be a year when
the day's work will never be
done.
'
"
7 ..7. 77 7 77 .7 "■

for the City
Bank Farmers Trust Co., an affil¬

His

Our task

trusts
Act

companies and the rights and
obligations of security holders.
The form also requires the sub¬

the

are

investment

Securities

spect to the organization, oper¬
ation and management of the

should be thinking. They should
be acting while they are think¬

command.

earnings

The

are

We

unit

hensive

our

management
expected to rise to

will

8, page 133.

iate, were $1,188,259 for 1941, as
compared with $866,435 in 1940.

that

against

us

higher levels than ever before
with
better
techniques at its

has pros¬

Bank's state¬
of Dec. 31,

also

periodic pay¬
certificates present

munitions," and to do it

vast

a

all

all

Above

nations

develop genuine

to

as

Rentschler
net

unit

1933.

7

for contrib¬

enemies.

production.

forward their efforts

should press

referred to in these col¬

was

were

reported

extraordinarily
rapid growth, the bank's deposits,
along with those of other New

a

of

ment

deposit insurance

$2,000,000.

after two years of

turned

branches

35

inactive

issue

plan

under 7 the

leading industrial nation of the
world, and our specialty is mass

war.

the

other

the

common

America must make to win the

Besides

forces, and

fighting beside

effort

earn¬

Included in these totals

Additional

;

bank's

which

such

uting largely to the equipment

enlisted civilian sol¬

an

do need

we

yet even remotely ade¬
for equipping our own

armed

ment

dier in the great economic

as

quate

funds for investment in govern¬

pered, he also reported.

lower.
v

current

-

ies

have

we

have succeeded in producing are

Second; we can show how by

ings." Latin-American business of

umns

counted

in

reduction

some

of

ment

about which

one

nearly two years now, and the
quantities of munitions that we

strength is needed to help

vous

__

Unallocated

registration

to have great concern. We have

toughen the fibre of America.

the

position

"The

determined.

,

.

trusts and management compan¬

been preparing for this war for

improve the quality and condi¬
He further
ing of branches," he said, "means tion of their assets."
be

"Bulletin" also says:

-

a

time

,

factors about which

their
problems

over

Mr Bruere said, "the sav¬
Japan would not be gram.
large, but that it would be some ings banks in the year to come
could

fast

The

with

war

plan
certifi¬
explaining this action,

payment

In

cates.

Quality, quantity, and speed
are the ingredients
of victory.

/,

invi¬

form

emergency

to

the

of

result

a

as

periodic

can

issue

>

Exposure of the

Rentschler

we

unit

those

which

trusts

.

potentially is larger in Ma¬
nila, he added, but about half the
assets
rest upon values outside
the Philippines.
Mr.

investment

dedi¬

are

currently issuing

the least
cause
for worry is
special problems and will :-be
issued at a later date,
quality. We already know that
77
the fighting quality of our men
Prior to adoption,
drafts of
stock taking?
7
777" 7* 77 7 is high., That has been demon¬
the form were circulated to all
My own belief is that the
strated
at
Pearl
Harbor,
at 7 unit investment trusts
regis¬
first thing for us to do is to
Wake, and in the Philippines.
tered under the Act for com¬
insure our maximum usef ulness
We need not worry about the
ment and
criticism.7 7(;,• 7 77' "
by making ' evident' that as a
combat quality of our soldiers
The registration form will not
group
of institutions we are
and sailors, on land, in the air,
only be available for.registra¬
equipped by history and habit
at
sea,
and
under
the
sea.
tion
of
such
unit
investment
to serve the community well at
Neither need we worry about
trusts 7 under
this time in several important
the
Investment
the quality of our planes, tanks,
Company Act of 1940, but it also
respects.
7'77; • 7
v7 7 7
ships, and weapons. 7 They are
is contemplated that it may be
First, we can strengthen the
'
7 strictly high-grade instruments
used, with certain additional in-*
sense of power and endurance of
of war. -77777
our
formation, for the registration
people by helping them
Quantity and speed are the
of new issues of securities of
save for

bank

bank's

its

We

and

Co.

are

including

if we try "hard the Commission's announcement
enough, and long stated:
:
'
enough," the "Bulletin" declares.
Forms
and
regulations
for

the

and

on

with

Trust

goals.

new

foreign

country;

Cleveland

securities,

the "goal

enough,

.

to

the

achieve

plans and set
What measures sug¬
gest themselves as helpful and
important at this moment of

were

of

sue

message,
Mr.. "Business Bulletin."
the many ways cated to this task

starts

trusts which

com¬

bined, according to the Jan. 15 is¬

77.,; 7 7777' 7'77,
the

year

tation

transferred to a
Spanish
commercial bank
and
legal steps were taken to wind up
the National City, Bank of New
York (France) S. A., the French
subsidiary of the
International
Banking Corporation.
This left
in
Europe only two branches,
Spain

v

At the

his

*

reviewed

Now

the two branches of the In¬
ternational Banking Corporation

•

$4,000,000 representing a fur¬
partial liquidation distri¬

on

banks and their
personnel have been contributing
to
the defense, effort
Then he

deposits, mostly in dollars, were
paid, $3,000,000 was added protected by assets held outside
to surplus,
and $2,115,158 ear- war
areas.,
Bank
buildings
at
ried to undivided profits.
Harbin, Osaka and Shanghai were
Vr
The surplus account was in¬ sold during the year. All premises
creased also by $6,000,000 front now owned in the Far
East, Mr.
the
year's recoveries and by Rentschler
said,
' are
fully
ther

converting the Nation's pro¬ change
Commission
announced
ductive capacities
to the point the adoption of a registration form
where
this'; country's output of under the Investment Company
munitions and ships shall exceed Act of 1940 for unit investment

which savings

were

'

In

Bruere

-

;
:
Dividends

educational

thrift that America has

,

say:

greatest

nessed."

According to Mr. Rentschler's
report, the earnings of the bank
for the year, after provision for both in London.
taxes and depreciation, were $17,In the Far East, Mr. Rentsch¬
721,822 as against $18,169,449 in ler said, the branched in Kobe,
1940.
Included in these figures Osaka and Yokohama as well as
were
profits' from the sale of those in Harbin and Dairen, in
bonds
.and.
securities
in
the Manchuria, were closed before
ahiount of $6,406,663 in 1941 and the outbreak of war with J?ipan,
$6,712,098 in 1940 which were leaving only a small office in Totransferred
to
leaving kio.
The branch at Canton was
reserves,
current net earnings for the year closed and consolidated with that
of $11,315,158 as compared with of
Hong Kong, while Peiping had
$11,457,350 for 1940.
Net recov¬ been reduced to an outpost for
eries, substantial in amount, wer& Tientsin.
The
remaining
local
not included.
The report went oh currency deposits were balanced
'to

Bank, called

On Jan. 9 the Securities and Ex¬

•

of t

the mutual savings banks on Jan.
11 "to do now, by united
action,

added:

during

American business has the task

Banks Association of tne
of New York and "of the

savings

,

in

with

-

past year.

U. S. Munitions Output
SEC Adopts Form
Must Surpass World's For Unit Trusts

?•

To Educate In Thrift

year

and bankers face this

7.

vigorously"

"more

revealed

He

measured by his or its contribu¬
tion to the national need. Banks
•

Ran Ire

fc

National

Thursday, January 22, 1942

business

reached

,

Dec.
the

31,

1941,

retirement

having

—65
years—under the' Retirement. Systern of the Federal Reserve Banks.

George J.
the Buffalo

Bros.; pointed

an

Doll of

age

the

staff

Branch, has been

of

ap¬

officer of the Buffald

Tatham, Jr., of Tatham Branch with the title of Assistant

Company, Inc.

;;

Cashier.

*

•

•

v.1

•

•

--7

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4036

Volume 155

Eccles Urges

Mayors To Oppose Local Tax ;
Reductions, Ms End Of Tax Exempts

In ah address before the Annual Conference "of

>

-Marriner

Mayors, "Jan. 13:,
Governors/of > the

S.

Eccles, Chairman of the Board of
System, urged the city officials to oppose /tax ;ce-,
ductions in their respective municipalities and to strive to; put an
end of the issuance of tax-exempt securities.
Reduction of taxes
by cities and States, Mr. Eccles explained, would "negative what
Federal Reserve

Federal Government

the

is seek-^

to

taxation."

eral

should

be

thereby
ments

Present

maintained,

enabling

taxes

he

said,
Govern¬

local

1

to
pay
off their public
In asking the city officials

debt's.

to exert their influence to termin¬

the

ate

issuance

of

fair

:as

The

Annual

Conference

held

was

of

Mayflower

Hotel in Washington,,
Mayor LaGuardia of New

C.

D.

lost

to

far

more

Brooklyn Trust Co..

Operating Net $681,130

is

'

the

by allow¬

economy

Net operating earnings of the
wealthy
to
escape
Brooklyn Trust Co., Brooklyn, N.
through.this loophole than is
Y., for the year 1941, after all

ing

saved

in

interest.■*

Remember

also that your local citizens
pay
Federal taxes—and ."the bulk of
them pay heavily , for the ex¬

emptions

thus

afforded to

the

by.

the

credit reserve for use
in the post-war era. Repayment

ing

York City, President of the Con-'
ference, presided.
The following
is the portion of Mr. Eccles' ad-

a

up

available

those

to

hold

who

statement

of

George

banks

State

during December

is Vice-Chairman of the Board of
J.

meeting on Jan. 12.
McLaughlin reported that the
earnings were disposed of as fol¬
lows: total for, reserves, $287,300;
.

;

of
$16,899,897.
Ap¬
proximately 13%. of our hold¬
ings mature within 5 years,
callable

in

mature

from

55% mature

savings

5

or

bluejacket

ities.

Indeed, you have
opportunity for a

ities:

•V/'
■

1

f

?
;

There

timely
like

subjects

you

in

can

should

I

-

cities and

to

10

<

10 to 20 years, and 3% are
not callable within 20 years. - -

you can

As to the latter, the

Government

has

the way.> Your States and
Let

led

cities

tell you

me

why these two lines of action
are so necessary and important.
•

As

all know, the enor¬
mous military demands for ma¬
terials
and
man
power
have
you

made it necessary for
dent to call upon the

the Presi¬
public to
expenditures
and

reduce

its

thus

v:

release

to

resources

urg¬

ently needed for war purposes.
•"

;

The

considerations should

same

lead government at every level,

Federal, State and local, to re¬
duce or postpone all expendi¬
that

tures
.

the

AfoL:

1

not essential for

are

effort and maintenance

war

_

morale.
Public
works, all plans for capital imcivilian

_

proVements, should be deferred
so
far as possible until-after
the

such

expendi¬

tures can be timed to

stimulate

when

war,

There is
rule

one

far

so

maintain

and

production
ployment.

as

those

experiencing rapid

sion

because

of

expan¬

activ¬

defense

influx of popula¬

the

tion, it is manifestly impossible
to curtail—for you must extend

mind that the

own

land.
the

reported

that, the bank is
active in national defense financ¬

/

all

needed to take

services

sudden

this

care

of

tax, the

for

growth. Because, in all
probability, this growth is not
permanent, part,' if not all, of
the costs of extending public
porary

services

should

defense
be

work

treated

be

and

thus

man

that

practice

you

,

.

every

'

consistent

economy

of

maintenance

with

essential

the
serv¬

1

This does not mean that
should reduce local tax¬
ation, however plausible that
may seem at first.
For to the
extent
that
you
reduce local
ices,.

which
Do

you

Federal

Government

is

on

$100

every

of democratic

tions of justice.

To

.

concep-

the

with the million-dollar

as

a

.man

income,

is worth

as

much

taxable security that yields

\...

9y2%.

seek¬

The U. S. Department

culture

said

on

Jan.

that

no

ing

armed

t

...::

All other

originally announced on Dec. 16,
1941

CCC

of

1939

1940

and

wheat at the market

less- than
loan

15

value.

cents

price but not

over

er's contribution to the
fort

1

.

shift

is

made

ef¬

services, thus aiding in the
of

economic

military

purposes.

tent

war

by

that

the

resources

To the
Federal

to
ex¬

tax

the taxpayer is
offset by reduction of State and

pressure

upon




other
,

Taxes that compel all

groups

to

living standards
contribution
the

war

for the

to

curtail
as

the

a

their

necessary

winning of

do not touch him.

comparatively small

As/
sav-

presently

Premiums

corn

stored in

rary

1941.

year

suffer¬
of our

men

there

the

be. And in

Red

this,

our

make its task

thorough, to make
efficient, to make it complete.

it

Saying that America seemed for
to have

years

lost her power of
the Japanese

indignation

"until

thunderbolt

struck," Mr. Lamont

said that "we have got to hurry to
make up for lost time" when "we
had

blinded

march

ourselves

to

the

of events." He went

criticize

"isolation

the

on

to

doctrine"

but added that the Japanese

inva¬

sion has suddenly "brought unity
to America" and "former differ¬
of

opinion are all dissolved
general cause that we
serve." Stating that "we have now
ences

the

in

awaked

in

timejii: only

we take

hold at once" Mf! Lambnt contln-

'

ued:

y

We
a

V.y;■.%

■

begin to

see

not

through

as

glass darkly but face to face.

We

see

for

years

that this country which

acted

as

if it

is

potentially

internationally

weak and spineless

were

the

strongest

in

the world. Immense preponder¬

in

ance

materials, industry,

raw

financial

the

resources,

most

highly skilled and efficient staff
of workers. We begin to see in,

America's

that

deed

such that, if

might

is

rightly directed, if

the will, we

can

win

and win the peace.

But

character

made

ap¬

instructions

These tempo¬

dispense

with

strength

our

must

come

y responsibility. No longer in the
/ years

to

come

I that, be it
•

can

dodge

we

privilege

a

/a//';

den.

v

his

concluded

He

bur-

or a

remarks

by

declaring:
Yet—make

mistake—this

no

country has never been in such
dire

peril

today. The danger

as

is alive. It is before

We must

us.

meet it and meet it today.

This

the

1941- the requirement of responding to

great

and

dis¬

and

tangible task that must be car¬

the

ried through. It gives uS an im¬

all risks.

taxation.

increasing
The taxpay¬

temporary

a

are

pooled: ing the

and

Federal

through

in¬

provides for the offering by the' plicable only to the reports cover¬

reducing his
personal expenditures for goods

•

inflation

to the form

number of minor changes,

of

to the

to fall to at once, to work to

us

day of May of each year,

The amendments

tions

engaged.

country's greatest crisis, it is for

with

(see issue of Jan. 1, page 29); which

types-of incomes—
salaries, wages, dividends — are counts established under the 1941:
subject to the rising rates of loan program also are used in de¬
taxation,
to
say
nothing
of termining
the
minimum
sales
business anji other risks.
It. is
prices. The Department also an¬
only the recipient of the taxexempt income v/ho is free of nounced that Government-owned

ing to accomplish in controlling
■

will

struggle in

been

whatever

forces,

Cross

men

forget that what¬

may come

have

a

con¬

it has al¬

as

every

danger,

ever

war

volve

in

on

of Agri-; covering .the prior calendar year.

1

our

or

American

our

once

the

reports

seas

personal

have

we

not

the "first

Grain Sales Price

from

yielding. 2%

negative what the

taxation,

The

income of $100,000

$69

the tax-exemption privilege af¬
forded
by J a municipal bond

you
'

income

for

been in

ways

we

Annual

all

changed, but

the

for

their families

this form are
required to be filed on or before

a

$79
de¬

have

Times

same

and

companies in filing an¬
reports
under • the Public

tax-exempts— change would be made in the min-j
principally of a clarifying nature,
and
so
on.
The
tax-exempt imum
sales
prices for pooled the SEC explained. y.i
privilege is worth the most to
wheat during the period ending
In
addition,
the
Commission
the wealthy and the least to
those of small means—quite the Jan. 14, 1942. The sales program adopted
supplementary instruc¬
opposite

;.f

of

with

saves

tax-exempts!

an

saves

of income

as

ne¬

from

with

thus

should

Otherwise, it is urgently

$100

every

rived

financed with Federal help.

cessary

man

million-dollar income

to

tact, for the human touch is just

total savings, Mr. Bruere added,
increased, the more valu¬
"will the campaign for Victory re¬ nual
able the tax-exempt privilege
ceive the right kind of popular Utility Holding Company Act of
f becomes. For example, by put¬
financial support, and the preser-j 1935.
ting
his
money:
into
taxvation of a sound economy be as¬
The
amended
Form ,U5S
is
exempts, even under the pres¬
sured." - :
! marked "Adopted Dec. 31, 1941."
ent income

but probably tem¬

the

across

need

the

.

and fire protection and
the other essential public

police

vital

so

appeal today for

an

men

holding

to be

v

war

the camps scattered all over this
<

tional

have

taxes

more

^

"

is

certain

items

the

permit

a

answers

to certain other items.

in

form,

simplification

addition, the

temporary

of

In

instruc¬

Red

mediate
with

worthy

cial

bearing

confidential

supplement, the

terminal and sub-, maps and descriptions of changes

terminal elevators will be offered

in

by the CCC at 82 cents for No. 2

items 6

yellow corn, basis Chicago,. The

parable information filed

previous price was 81 cents.

of Exhibit G to the form.

physical

plant

called

for

(b), Exhibit E, and
as

bv

com¬

part

resolve

the

our

fight.

our

far

of

is

effort

opportunity

new

tions provide for filing, in a spe¬

Cross

to

that

men

one

show

we

,who

are

are

fighting

burdens,

It will yield results

beyond the money itself. It

will

revive

among us
and of

1

institution"-

to it that the

see

which

This is

■

commun¬

ities

ities and

em¬

exception to this
your cities are

In

concerned.

He

v

chest

years,

defense.
Of this amount,
manship by opposing any fur¬
"The loss in deposits is not im¬ $3,050,686 was outstanding at the
ther issuance of tax-exempt se¬
portant when compared with the year-end, the rest having been re¬
curities
by
your
States
and $5,548,711,000 on deposit with the paid in the usual course of busi¬
cities.. In these critical times it
savings banks at the year end," ness.
is
more- important
than ever stated Henry Bruere, President of
President
McLaughlin
stated
that our tax structure be as fair the State
Association of Mutual that the bank is also actively "en¬
and equitable as we can make
Savings Banks and the Savings gaged in selling Defense Savings
it.
There is no -more glaring Banks'
Liaison Officer with the Bonds, the sales totaling $6,020,800
loophole in the tax picture than Treasury
Department.
"How¬ since they were first offered to
that afforded to the wealthy by
ever,
it is apparent that many the public on May 1, 1941.
reason of
tax-exempt securities. people, in their enthusiasm to sup¬
In his general comments, Mr.
They are a hide-out and a port the Defense Savings Cam¬
McLaughlin said:
haven where the man of means
paign, have overlooked the true
can put his money and insulate
Banking institutions must and
objective of the Treasury Depart¬
will play an important part in
himself
from
paying the in¬ ment. This is to attract new sav¬
creased taxes that must be-ex¬
helping to win the war. They
ings out of current income.
In¬
will undoubtedly increase their
acted today all down the line,
stead, they have drawn on exist¬
holdings of Government secur¬
extending to small groups that ing
savings
for their Defense
have not been subjected here¬ Bond
ities, extend additional credit to
purchases.Unfortunately,
defense
tofore to income taxes.
While
contractors, and con¬
meeting the Treasury's financial
tinue to sell Defense Savings
I do not see how taxation can
requirement- is not that simple.
Bonds to the public. Qur duty,
be levied in good faith on the
Withdrawals of savings deposits
like
that
of
everyone
else,
tax-exempts
already
issued, generally necessitate sales of Gov¬
is to help the Government carry
there should
a„. discontin=
ernment bonds by the. savings in¬
the war to a successful conclu¬
uance of this inequitable prac¬
stitutions
in
order
to
maintain
tice so far as all future refund¬
sion, regardless of whatever re¬
proper cash, reserves.
Thus sav¬
adjustments' we must make.
ing or new issues are concerned. ings so transferred ~ are
merely
How
can
anybody
justify switched from one type of Gov-:
raising tax rates all down the ernment bond to another, with
lit-; SEC Amends Holding /
line, even to the low income tie if any net gain to the defense
groups as is necessary both to
Company Form U5S
financing program and at an act¬
war-financing and to the con¬ ual increase in cost to the Govern¬
The Securities and Exchange
trol of inflation, while allowing
ment.-"
" -r •
Commission on Jan. 7 announced
those of large means to
escape
adoption
of
a
number of
Not until there is widespread the
by investing in tax-exempts? It
amendments to Form U5S, which
shrinkage in civilian
consumer
is
indefensible.
And
bear
in
is the form used by registered
spending, and regular additions to

exert
all your influence to put an end
to the issuance of tax-exempt
your

697,000 for the full year.

naval

these intimate services is filled.

-

contribution to financial states¬

tax reductions

oppose

should follow.
/■;..■■

that

mention, though I sus¬
pect they will not be popular
with many of you. Specifically,

'*[< Federal
;

particularly

to

securities.

•

two

are

a

"must

outlying

,

American

We must

"rare May 1 to over $103,000,000. Dur¬
major ing the same month, however, the ing, making 48 loans totaling $6,achievement in financial states¬ loss in deposits was $27,550,000, 401,698
during the year to finance
manship. I hope that opportun¬ despite $34,900,000 added as year- operations of private business con¬
end dividends,
ity will be grasped. '
bringing the de¬ cerns
working
oh
government
You can make another ■ real cline in savings deposits to $134,- contracts in connection with na¬

tax-exempt

Cross

which in itself, aside from the im¬
mense
services - it
renders, ; is

become callable

or

secur¬

of

r

on

"unique

a

become

issuance

could
secur¬

Red

stations." He called the Red Cross

in

amounted

to $29,577,000, bringing the total
since the program was initiated on

either

invest

they

the

added:

se¬

them

which

that

soldier in the field and to

to

go

increase

Government

were

of. the:

Government

Morgan & Co. Incorporated

"worthy of all our support as the
symbol of the very freedom and
democracy that we are working
and fighting for,"
Mr. Lamont

States

curities

ductions and the abolition

in

P.

stated

$53,211,270 at the
end of 1941, against
$36,311,373
at the beginning of the
year, an

United

Jan.

"dress urging opposition to tax re¬

funds

din-*

a

their annual

Total sales of defense securities

York

address at

an

of the Greater Boston United

ner

Mr.

29%

New

appeal on Jan. 8 for sup¬
port of the Red Cross drive tor
an

McLaughlin, President of trie War Fund. Saying that this is a
bank, given to stockholders at "war measure," Mr. Lamont, who

counts.

the

the

$50,000,000 in

the

to

ing

16.

securities would make by

.of'your

Lamont, Chairman
Advisory Commit¬
American Red Cross,

V.

savings
on

W.

$681,130,
which
compare
with
$700,700 in the year 1940, accord¬

.

reported

of

tee

made

'

banks of New York State

Thomas

of the National

expenses, interest, and taxes, were

to undivided profits,
$10,830; to
surplus, $75,000,
and dividends
paid,
$328,000.
President
Mc¬
clusion to be drawn from statistics Laughlin also said:
:
on
deposits and Defense' Bond
The Company's holdings
of

sales

Lamont Makes Appeal In
Red Cross Fund Drive

*

the

For despite record purchases
well as private debts, there-;
of Defense Bonds
during Decem¬
by helping to offset the infla¬
ber, it is explained, these pur¬
tionary factors arising from ex¬
chases were more than offset
by
pansion of the Federal debt,j
withdrawals
from
savings
ac¬
while at the same time build-!

Jan. 13 at the

on

pay

as

,

Mayors

reduce local public debts

or

is

to

This

off

make it.
-

time

the

war.

tax structure be,
equitable as we can
our

and

secur¬

ities, thus helping to finance the

Mr.
Eccles
declared j
the present time it is im~:

portant that

tax-exempts,

taxes, the

the funds in Government

tax-exempt

securities,
that at

sue

wealthy.
V
economic pur¬
pose of
the Federal tax pro¬
Defense Bond Sales Up
gram is defeated.
Accordingly,
instead of reducing local,taxes*.
Savings Deposits Down
you
should
maintain
them,
That people are not"
saving any
thereby enabling you to pay off
substantial portion of their cur¬
your public debts.
If you have
rent income is the inevitable con¬
no such obligations, then invest
local

accomplish in controlling
inflation through increasing Fed¬
ing

ing in the amount of interest paid
by. the public bodies which is¬

*

339

and

reawaken

the spirit of self-help

helping others.

THE COMMERCIAL & FINANCIAL CHRONICLE

340

Thursday, January 22, 1942

-Retail Financing (400 Organizations)-

Labor Bureau's Wholesale Price Index

Wholesale,

Bureau

of

Year

Unclassified Cars
Volume

/.Volume
Number

in

Number

Thousand

Thousand

of

Dollars

Cars

Month

Labor

•Total

in

and

TJsed and

New Cars

.

Financing
Volume

,

Reaches New 12-Year Peak In Jan. 10 Week
The

NYSE Odd-Lot

'

in

Number

Thousand

of

Dollars

Volume
of

Dollars

Cars

in

•

The

Jan.

on

Cars

Dollars

that

15

...

Exchange

Commission made public on Jan.

Thousand

Statistics, U. S. Department of Labor,
1941
50,073
180,052
56,606
198,874
247,214
106,680
67,162
agricultural commodity markets rose October
November
194,258 a208,727
94,901
44,425
50,476
150,789
57,938
sharply during the week, ended Jan. 10, following Senate action on
Total (11 mos.
the price control bill providing for higher farm price ceilings and
end.
Nov.)
2,257,822 4,193,035 1,920,915 1,416,423
1,028,083 2,776,612
892,832
there
were
moderate
price advances in other markets.
The
1940—
Bureau's index of nearly 900 price series rose 0.7% to 95.0% of the October
221,252
337,304
151,899
127,113
89,475
62,424
210,191
November
220,941
331,040
152,009
124,661
88,574
63,434
206,379
1926 average, a new 12-year peak.
Total (11 mos.
' ~
'/v ■/■'"./
In explaining the changes, the Bureau's announcement said:
end.
Nov.)
1,910,123 3,693,167 1,579,374 1,319,539
888,602 2,373,628
690,772
The indexes for 7 of the 10 major commodity groups ad¬
1939—
;•
vanced during the week.
130,331
267,702
The upward movement was led by an October
109,792
89,886
59,524
50,267
177,816
49.940
173,802
63,999
134,922
272,735
113,940
98,933
increase of 2% in farm product prices, and 0.7% in food prices. November/.™
Total (11 mos.
Textile products rose 0.9% and building materials, 0.6%.
Chem¬
end.
NOV.)1,327,777 3,077,221 1,243,388 1,047,765
675,037 2,029,456
568,350
icals and allied products and miscellaneous commodities advanced
a Of this number 27,7%
were new cars, 71.9 % were used cars, and 0.4% unclassified.
0.2% and metals and metal products were 0.1% higher than for
the previous Week.
Prices of fuel and lighting materials and
/
RETAIL AUTOMOBILE RECEIVABLES OUTSTANDING END OF MONTH
AS REPORTED BY 214 IDENTICAL ORGANIZATIONS
housefurnishihgs goods declined slightly while hides and leather
products remained steady under price ceilings for both hides and V/;
1941
1940
/■/'■'./.
1941
/'
1940
'
announced

Trading

and

Securities

.

.

—

—

::

•'

.

,

__

,

__——

.

-

:

16

a

for the week ended
1942, of complete figures

summary

Jan. 10,

showing

the

transactions

stock

odd-lot ac¬
and

odd-lot dealers

all

of

count

of

volume

for the

specialists who handle odd lots on
the New York Stock Exchange,
continuing a series of current fig¬
ures being published by the Com¬
mission. The figures, which are
based upon reports filed with the
Commission by the odd-lot dealers
and

specialists,, are given below:
TH1
ODD4LOT

FOR

TRANSACTIONS

STOCK

OF

ACCOUNT

ODD-LOT

DEALERS AND SPECIALISTS ON
THE
NEW
YORK
STOCK

.,

/

EXCHANGE

.

.leather.

$

Prices

for

nearly all agricultural commodities rose sharply
during the week, Livestock and poultry advanced 4% as higher
prices were reported for cattle, hogs, sheep and live poultry. All
grains advanced, ranging from about 1% for wheat to more than
6% for rye.
Cotton prices were up about 4% to the highest level
since October, 1929.
Peanuts rose 14% and prices were also
higher for apples, onions and potatoes. Lower prices were re¬
ported for eggs and wool. In the past month farm product
prices have risen 6% % and are more than 39% higher than a
-

.

^

year ago.
Wholesale

•

.

.,'/.

■

■

./

'.

•

prices for foods continued to rise and are now at

Meats, dairy products and
cereal products rose fractionally as quotations were higher for
butter, flour, veal, mutton, ham, fresh pork and beef, for lard,
oleomargarine, edible tallow, most vegetable oils and for tea.
Sharp declines in prices for bananas and citrus fruits accounted
for the decline in the fruit and

4%

up

a

over

Cattle feed

vegetable subgroup.

week ago.

Th advance in prices for raw cotton permitted
cotton yarns and yard goods under the sliding

higher prices
for
scale ceiling
and caused the index for cotton goods to rise 0.8% during the
week.
Higher prices were also reported for dress shirts, under¬
wear, cotton hosiery and cordage.
Quotations for burlap fell
as

a

—-

-

for

v

/Percentage changes to
Jan. 10, 1942, from1-10

Foods

—

Hides and leather

1-11

12-13

1-3

1-11

1941

1941

1941

1942

1941

1941

94.3

93.8

93.1

80.2

+ 0.7

+ 3.0

+18.5

98.8

96.9

95.5

92.8

71.0

+ 2.0

+ 6.£

+39.2

+ 0.7
0

+ 2.3

dustrial

cities

14,790

Customers'

total sales—/

15,237

Number of Shares:
by The Conference Board.
Customers' short sales——
Living costs were unchanged in four cities and were lower in eight.
Customers' other sales*—
The largest increase was 1.3% in Akron and Grand Rapids.
The
Customers' total sales
largest decrease was 1.0% in Newark. In the United States as a
•%, DoUar value
whole the cost of living rose 0.5%.
Round-lot Sales by Dealers—
The cost of living was higher in December than in December,
Number of Shares: ■Short sales
-i—■■
1940, in all of the sixty-one cities for which comparable figures
Other salest—
are
available.
The largest increase was 16.6%
and the smallest
was 5.9%, in Newark.
In the United States the cost of living rose
Total sales ————/

surveyed

each

month

.—

8.7%.

/;

The

/\, ;/;v

://////;•,;,

;.:

gives percentage changes in Irving
from November to December in all sixty-eight cities.
CHANGES

Source: The

COSTS

LIVING

IN

TO

NOVEMBER

DECEMBER,

IN

/

/.,

following table

costs

Number of shares

liquidate

Conference Board

% Chge.

City
Grand

Rapids—.

Toledo

+1.3

Wausau

...—'

.L.-—+1.2

Sacramento

Lansing

City

+1.3

.—

...

........

Seattle

Dayton —:
Oakland
Parkersburg

—

;

—

Anderson

—i——

+ 1.1

Evansville

+1.0

Joliet'

+0.9

,—.

Dallas

+1.1

—_—

...

Lewistown

——-;. + 0.9

Los

——v—i

Angeles ;/

—

Meadville,

Muskegon

+ 0.8

Portland,

+0.8

Richmond

+ 0.8

Memphis —————
Philadelphia

Des

_

Li

Moines

Milwaukee
Erie,

—.......

Trenton

+0.7

„

+0.7

...

Youngstown

Bridgeport

.

Rockford

+0.6

——.

+0.6

Buffalo

Pa.

...—

_

penver

Macon

».»

...

Omaha

+ 0.5
+ 0.5

Cleveland w-/-—
Fall River
Front Rdyal

+ 0.5

Kansas

'Lynn

-

-

™—„

City,

Mo.——

——

+ 0.5

Providence
St. Paul

+ 0.4

./
-

-

Cincinnati

+ 0.4

-

Pittsburgh

+ 0.5

Spokane

Houston

—

Minneapolis

St.

Louis

York

+0.6

__—_.

New

+0.6

Indianapolis

sales."

+ 0.2

Roanoke

./■;. .;/

..

'■

+0.1
0

-

.

0

-

0

—

0

Market transactions in Govern¬
securities

ment

vestment

Boston

Chicago

——0.1

Louisville

—8.1

no

Atlanta

—0.2

ber.

New

Haven

—0.2

New

Orleans

—0.2

——j

-

—0.1

Manchester

+ 0.3

Newark

announced
sales

Jan. 15. There

on

/.

The

following tabulation shows

—0.5

the

—1.0

—-L

—:

Government securities for the last

+ 0.3

Treasury's

8.7

January
February....™

97.8

+ 0.1

+ 0.1

+

5.8

March.

108.1

107,8

95.1

91.7

91.5

78.2

+ 0.2

102.3

102.3

90.4

—0.1

+ 0.1

+13.3

87.5

87.4

87.5

77.1

+ 0.2

+ 0.2

+13.7

93.4

92.5

91.4

74.1

+ 1.2

+ 3.4

+27.5

90.3

90.2

90.1

80.8

+ 1.1

+ 1.3

+13.0

commodities™.

87.7

Raw materials-—

94.5

Semimanufactured articles—

9L3

-

t.O

+ Q.(

_99.(L

0.5

96.0

95.5

95.2

94.6

83.4

+

+ 1.5

+15.1

93.7

93.4

93.2

82.3

+0.4

+1.0

+14.3

94.3

94.1

93.9

93.8

84.4

+0.2

+0.5

+11.7

s

All commodities other than farm
"

products and foods

PERCENTAGE CHANGES IN SUBGROUP INDEXES FROM

1942,

3,

TO

JAN.

1942

10,

Increases

Plumbing and heating—_
5.9
—4.0

Livestock and poultry

...

Hosiery and underwear

4.0

2 8

•

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, 1941, and 1940. Cotton consumed amounted to 887,326
bales of lint and 110,612 bales of linters, as compared with 777,482'
bales of lint and 104,462 bales of linters in December, 1940.
December consumption of cotton includes 1,200 bales distributed
by Surplus Marketing Administration through various cotton mat¬
tress programs. The following is the statement:
v
DECEMBER

0.8

Other farm

0.6

goods/—.———.
products
Cereal products
Dairy products ———.

0.6

—

Leather

>

(Cotton In

IMPORT OF COTTON CONSUMED, ON HAND, IMPORTED AND
^EXPORTED, AND ACTIVE COTTON SPINDLES

runn^gLb&teSt

counting round as half bales, except foreign which Is
500-pound bales.)

0.5

materials

Fertilizer

1.6

Consumption Continues High

Under date of Jan. 14, 1942,

+

Cotton

1.7

—

DecembeLGotton

9.3

94.1

-

products—.

in

1940—

+ 4.2. +21.9

All commodities other than farm

transactions

two years:

+

108.3

were

purchases in Novem¬

or

—0.1

102.5

Treasury in¬
in

December,
1941, resulted in net purchases of
$60,004,000, Secretary Morgenthau

—0.1

95.3

for

accounts

72.6

102.4

'i'//''

■

+0.1

79.0

108;9

to

In Govts. For Dec.

+0.1

———

+ 0.3

—_

sales

Market Transactions

+ 0,4

+ 0.3

.

and

orders,

long position which is less than
are
reported with
"other

lot

+0.1

+0.1

+ 0.4

-; + 0.3
+ 0.3
-

86,410

"/;/'/:,'/■■'
—«/,/
169,930

+0.2

+0.1
—

140

86,270

+0.3

+ 0.2

...——

—.——

Detroit/————.
Flint

+ 0.6

....

—

Saginaw,-

+ 0.6
.

+ 0.5

/

+ 0.4

—

——

+0.6

Chattanooga
Duluth

-

+ 0.5

-v--*•

Ore.

Rochester

+0.7

+0.6

+ 0.5

+ 0.9

+0.9

Francisco

Wilmington, Del.
Baltimore

+ 0.5

—...——.

Birmingham

San

% Chge.

+ 0.6

+ 0.5

™—_

Syracuse ——u

■

V City

% Chge.

—L-

a

round

a

Akron

odd-lot

customers'

1941

+ 24.5

Building materials—
1——Chemicals and allied products—

361,203
12,238,513

♦Sales marked "short exempt"
are re¬
ported with "other sales." tSales to offset

CITIES

68

Round-lot Purchases by
Dealers—

/'/'"■

74.2

Housefurnishing

13,693

347,510

„

73.0

103.4.

Meats

sales*—

102.8

103.4

—

other

90.4

103.4

Cattle feed

447

Customers'

clerical

91.0

79.0

JAN.

lower-salaried

115.4

79.0

—

and

earners

■

short sales.—.

91.2

78.9
103.5

Manufactured products

wage

;

Customers'

91.5

+

20,507
511,524

17,654,001

Number of Orders:

115.6

92.4

Miscellaneous

....

91.9

,

——_.

Dollar value

1,166,050,596

115.7

Fuel and lighting materials-—-—
Metals and metal products——.

goods

—_

;

Number of shares .L.i..™.

92.5

91.6

.

—

+ 12.5

+ 1.5

—

+26.7

+ 0.3

0.9

—'—1,379,444,978 1,137,469,005

115.7

———

products——

1942

95.0

——.

Farm products—-———__™_

Textile products

12^13

12-27

1942

Commodity Groups—
AH Commodities—.

1-3

by Dealers:
(Customers' Purchases)

Number of orders......;,.^—

workers increased from November to December in 56 of the 68 in¬

result

(1926 ==100)

-

December

Odd-lot Sales

/December Living Costs Higher In 56 Cities
Living

of higher

prices for lumber, particularly most types of Douglas
fir, for oak, spruce and for yellow pine boards, finish, flooring
and lath.
Prices for window glass rose more than 5% and quo¬
tations were also higher for gravel, sand, lime and for rosin,
tar and turpentine.
Quotations were lower for yellow pine di¬
mension, drop siding, and for timbers.
Prices for industrial fats and oils continued to advance and
are now more than 158%
above the pre-war level.
Quotations
were also higher for acetic acid and for certain fertilizer materials.
The following tables show (1) index numbers for the prin¬
cipal groups of commodities for the past 3 weeks, for Dec. 13,
1941 and for Jan. 11, 1941 and the percentage changes from a
week ago, a month ago, and a year ago (2) percentage changes
in subgroup indexes from Jan. 3 to Jan. 10, 1942.

November

for Week

Week Ended Jan. 10,1942—

(Customers' Sales)

PERCENTAGE

Average prices for building materials rose 0.6%

July
1,542,871,600 1,105,273,234
August
.1,560,029,489 1,116,928,055
September ——1,493,636,261 1,097,627,143
October
1,435,361,363 1,114,526,350

Odd-lot Purchases by
Dealers—

4.3%.

:

Total

$

January
1,180,906,448
876,699,079
February ™„1,208,702,083
887,096,773
March
—1,255,229,506
918,645,709
April
—.1,340,696,165
971,940,670
May —™—1,432,542,508 1,021,533,732
June
——1,499,983,244 1,063,638,452

costs

the highest level in nearly 12 years.

prices were

•

'

*

.

Cotton

0.3

on

hand

$9,475,000 sold
20,801,000 sold
5,700,000 sold
-sold-

May.

387,200 purchased

.

934,000 purchased

June...—

July
—. No
sales or purchase®
August—
,No sales or purchases
September./.....
$300,000 sold
October—^.......
4,400,000 sold
284,000 sold
November.—.....
December—
1,139,000 sold
1941—

January.....

February.
March—!

$2,785,000 purchased
11,950,000 purchased

—

—.No sales or purchase®

April————U
May——...i.
June.—.—.—

-

$743,350 sold
200,000 sold

447,000
July™.
No sales or
August.^——/ No sales or
in September
$2,500
October
200,000
November
No sales or
'

...

purchased
purchases

purchases
sold
sold

purchases
—$60,004,000 purchased
—

Grains

...

Farm products

...

•——

1.6

Lumber

;
building materials /——.

1.2

Bituminous coal

Other

1.2

Drugs and pharmaceuticals

Other

foods

0.9

Paper

Clothing

.

.

—„——

—

.

Oils and fats

———*

and

pulp

during

0.2

—

0.1

———..

I

,

December,

0.1

Year

0.9

United

Decreases

States.

1941
1940

Fruits and vegetables
•Hides and skins

2.3
0.3

_

Furnishings /..
Other textile products,

—

0.1

Cotton-growing States

1941
1940

1941

1941

Financing Reduced In November

37.6%

under the

same

announcement released Jan. 14

1939.

The

volume

of

to

$94,901,896,

a

dropped 2.3%. Wholesale financing was 12.1% under a year ago
but 44.0% above November, 1939.
Retail automobile receivables
outstanding on Nov. 30 for 214 firms amounted to $1,379,444,978.
These 214 organizations accounted for 93.9% of the total volume of
retail financing reported for November by 400
organizations.
The table below presents statistics

on

3,771,145
3,065,710
528,499
415,494
140,810

1,965,122
1,538,279

97,403

44,170

1941

21,436

/360.073
254,642
68,587

13,326,808
14,799,340
367,702
242,710
19,263
8,773

17,404,194
17,261,044
5,009,228
4,919,860
649,690
618,156

INCLUDED ABOVE

17,061
9,687

49,886

1941

3,647

14,897'

1940

1,928

9,446

1941

110,612
104,462

1941

-

Amer.-Egyptian cotton

NOT

Linters

-

...

94,903

78,811

1940

Foreign cotton

1940

INCLUDED

.

33,143
9,530
7,490

526,647
500,529

the

interest

has decided

of national

115,094
76,269

defense the Department

World
Because of

pendable

world

war

report for the time being.

of

Com¬

imports and exports.

609,000, leaving current net earn¬
ings of $356,000.
His statement

are

to

current

Government

Deductions

net

ciation

this

securities.

current

net

on

bank premises.

The net earnings for the year

$296,000.

tributed

being omitted from

from

earnings amounted to $120,000,
being for the most part depre¬

were

Statistics

such data

St.

while current expenses were $1,-

States

conditions and the difficulties in obtaining de¬

statistics

of

Louis, announced on Jan. 6 that
purrent earnings of the bank dur¬
ing 1941 amounted to $1,965,000

to discontinue until further notice the publica¬

tion of detailed statistics concerning

Davis, President of

amounted to $60,000
and
consisted
principally
of
profits from sales of United

Imports And Exports Of Cotton And Linters
In

C.

Addition

consumption of cotton includes 1,200 bales distributed by Surplus Mar¬
keting Administration through various cotton mattress programs.

merce

Chester

the Federal Reserve Bank

earnings

ABOVE

622,291
507,804

St. Louis Reserve Bank Net

continued:

56,092

60,884
14,168
11,112

♦December

wholesale and retail fi¬

nancing for 400 organizations in. November; figures of automobile
financing for the month of October, 1941, were published in the
Dec. 27, 1941 issue of the "Chronicle," page 1680.




753,623
666,920

1940

All other States-.—..

retail

financing for 400 organizations
decrease of 11.0% from October, 1941.
Between October and November of this year, the volume of whole¬
sale financing — which had- risen to
$198,874,483 in Octoberamounted

4,440,454
3,578,607

financing in November,

month a year ago, according to an
by J. C. Capt, Director of the Census.
Financing in November 1941 was 16.7% under the level of November,
was

ing Dec. 31
(bales)

108,423.
89,126
25,280

1940

The dollar volume of retail automobile

(tmles)

*887,326
777,482

0.2

New England States.

Automobile

In
In
Cotton
consuming public storspindles
age and at active during
ments
compresses
December
(bales)
(bales)
(number)
2,393,782 13,713,773 23,063,112
1,837,091 15,050,823 22,799,060

December.

5 mos. end- establish-

0.1

——,

December 31

Cotton consumed

0.2

...

as

They

follows:

were

dis¬

Dividends

member banks $259,000 and
net addition to surplus accounts

to

$37,000.

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4036

Volume 155

Commercial National

N. YjState Factories

Making War Materials
Additional Workers; Payrolls Higher

Hire

plants in New York State continued to hire additional
the middle of November and the middle of De¬

Defense

Bank 1941

Bankers Dollar

Earnings

Gross earnings of the Commer¬
cial National Bank & Trust
Co.,
New York City, in 1941 were

$2,562,235, while net earnings, after
cember, according to a statement issued on Jan. 10 by Industrial
deducting expenses, taxes and de¬
Commissioner Frieda S. Miller.
Outside of the defense plants, the
posit
insurance, were $907,357,
trend of factory employment in the State was slightly downward.
according to the annual report of
Eight of the 11 main industry groups and 36 of the 55 individual
Herbert P. Howell, Chairman of
industry
classifications
showed<$>the Board, and Walter G.
Kimball,
materials or reduced production
fewer workers employed in De¬
President, which was presented to
schedules.
cember than in November.
workers

between

Pay¬

industries

rolls

in

little

statement added:

These statements

a

'v.:-!

are

based

on

preliminary tabulations cover¬
ing reports from 2,140 repre¬
sentative
manufacturing
con-

These firms
re employed 550,750 people during
the
week
ending nearest the
15th of December and paid them
$19,790,347 in salaries and wages
;:T; for that week. Index numbers
for December compiled by the

,7

in the State.

cerns

I Division

Statistics

of

In¬

and

under the direction
of Dr. E. B. Patton, were 126.8

formation,
for

employment and 156.2 for
payrolls compared with 100.0
for the base period
1925-1927.
These • figures
represent
in-

*

-V
'

*

/

creases

i

in employment and 3.5% in pay¬
rolls.
Compared with Decem¬

November of 0.3%

over

ber, 1940, employment had risen
22.4% and payrolls 44.5%.
The
only plants that were

hiring large numbers of work¬
between November and De¬

ers

cember

metals in-

the

Hundreds

dustries.

,

in

were

of

addi¬

tional employees were

hired for
firearms,
ships tanks, instruments, air¬
planes, electrical machinery and
of

manufacture

the

other

materials.

war

firms

smelting
and

metals

some

and
refining
making non-

*

from

materials

defense

metals

fewer employees and
payrolls
in
December

reported
lower

than

ductions

were

the/ firms
due

These

November.

in

shareholders at the bank's annual

December

centers of

industrial

principal

in em¬

the State reveal increases

ployment in the Utica, Rochester
and
Albany-Schenectady-Troy
areas.
Big increases at plants
making war materials occurred
in all of these districts.
The
Buffalo

in

this

York City

deposit

the

in

gains

U.

of

seasonal

clothing

fur

at

losses

been

shortage of

raw

in

six

Loans

and

and

earnings for the

Empl

,

Utica

Payr.

+3.9

+28.5

+ 65.9

+1.1

+ 3.7

+ 22.4

+46.4

™—

+ 4.5

+

36.0

+ 60.4

Less

,™_

+ 1.0

+ 21.7

+ 44.0

New York City

+ 4.0

+

17.7

+ 32.3

+ 11.4

+ 44.8

Gross

+0.2

earnings
expenses,

&

Buffalo

—0.3

+ 3.9

Graham, President of the Univer¬
sity of North Carolina, as mem¬
the

of

bers

Maritime

new

War

Emergency Board was announced
on

Jan. 4 by Rear

S.

Land, Chairman of

Admiral Emory

the Mari¬

on

Jan.

tive

12.

The

charitable

total

$2,957,000.

From

2,532,000

5

1,362,000

1,636,000

2,379,000

1,430,000

Richmond

6- Atlanta

;i—-™™™:,.™

7

Chicago '

8

St.

9

Minneapolis

4,767,000

Louis

11

Dallas

12

San Francisco

■Mm u.: **

168,000

2,755,000

2,806,000

53,000

21,436,000

22,377,000

.18,445,000

$193,590,000

$208,659,000

«•* **

Wit.'-l *+ +<

'fc*

1*'*+

w» ** w* •»* •*»

'■*'[

;

™_™_

Total

$194,220,000
month

$630,000.

Decrease for

ACCORDING

TO

57

Trust's

Dec. 31, 1941

Nov. 29, 1941

Dec. 31, 1940

$116,496,000

$115,699,000

$109,206,000

14,639,000

13,544,000

11,708,000

11,894,000

9,579,000

35,967,000

36,095,000

34,388,000

4,006,000

4,506,000

9,882,000

11,404,000

Imports

11,852,000

27,461,000

'

Exports
Domestic

shipments

Domestic

warehouse

credits
...

_

BILLS HELD

bills

$91,701,000

BY ACCEPTING BANKS

of

Bills

'

"

others.
for

Increase
CURRENT

New

from

Washington to the
York "Times" it was stated:
5

were

Dealers'Buying Rates

'

1925

30

Va

60

ya

ft

90

ya

120

f*

ft
ya

%

ft
ft

The following table, compiled by us, furnishes a record of the
of bankers' acceptances outstanding at the close of each

volume

month since Jan.

31, 1939:

,

1940—

arise between sea-going person-

and

nel

operators of American

outpayments

31„_

$229,230,000

Jan.

31

Feb.

Feb.

28

Mar.

29™™ 233,015,000
30™™ 229,705,000

Mar.

31

237,831,575

Apr.

30™

223,305,000

Apr.

30

246,574,727

May

31

213,685,000

May

31_

215,005,000

244,530,440

June

29™

206,149,000

June

30

236,010,050

July

31™™ 188,350,000

July

31

212,932,000
209,899,000

235,034,177

Aug.

31™

181,813.000

Aug.

30™™ 197,472,000

30

176,614,000

Sept.

186,789,000

Oct.

31

184.806,000

196,683,000

Nov.

29__

193.590.000

Dec.

31™™

194,220,000

245,016,075

29

May

31

June

30

31

Aug."

31

30

Oct.

31___

221,115,945

Oct

31™™

Nov.

30

222,599,000

Nov.

30

Dec.

30

232,644,000

Dec.

31

208,659,000

on

in

funds

1941

sold

securities

earnings

gross

applied

to

/ $44,368 held in
profits account.
the

After

.

™

-

Sept.

215,881,724

in

16

states.

cost' of

net

Grace National Bank*

the

At

annual

meeting

of

of

payment

divi¬

to

merchant

ships.

establish

war

termine

for

a

.

war

ence

ships operating in
V

on

areas.

between

stockholders of the Grace National
Bank of New

securities

York, held

on

Jan.

employers
was

and

$42,253,

grant,

the Department of

expenditures. In the public in¬

service in New York and Brook¬

terest, there will be additional

lyn.

governmental

Payments to the Community

Service
the

Society

were

$23,298;

tine, $16,369;

and

to

the United

Hospital Fund,

$15,942.

Lend-Lease

to

Uruguay

Labop, in addition to asking the

was

signed in Washington

President to

13.

and

war

there
or

would

lockouts

period,

be

110

during the

all

that

Under

American

the

pact

republic

Judgment
or

the

will

on

Jan.

South

Federal Reserve
Ronald Ransom of

nominated by

will be retained and

Cordell Hull and Uruguayan Am¬

nors

bassador

tem for

ments and
ence

all agree¬

obligations in exist¬

will in

no way

be violated.




Juan

was

of

Carlos

signed the agreement.

part in this emergency.

Ransom Is Renamed To

revealed.

Secretary

background,

victory. Your bank is prepared
to do its

try under collective bargaining

supplies

not

on

Board

Georgia

was

President Roosevelt

Jan. 7 for reappointment as a

State member of the

Blanco

tion

of

long

the

of

years

Grace

of associa¬
organization

with Latin American affairs."

"Since

our

business has been in¬

the latter months of the year and
reached

is

there

its

peak

reason

to

in

that

the

Board

of

Gover¬

bf the Federal Reserve Sys¬

Feb. 1.

a

14-year term beginning

operations for

compared with
$9.76 per share in

as

profits
not

are

sales

on

carried

of

into

operating earnings but in¬
are

accounts.

During

reflected

the

!

in

our

latter

re¬

■'.

/

months

of

the year we increased

substan¬

tially

in- Gov¬

our.

investment

ernment

bonds, but the im¬
proved yields which were then
obtainable

were

not effective for

long enough period of time to
change the downward trend of
yield on total loans and invest¬
a

ments for the year.
At the meeting, Clark Haynes
Minor, President of the Interna¬
tional

General Electric

Director

of

Co.,

elected

was

the

Co.

General
a

and

a

Electric

director of the

bank.

L. A. Steinhardt Named
U. S. Envoy To

Turkey

Laurence A. Steinhardt, United
States Ambassador to Russia, was
nominated by President Roosevelt
on

Jan.

Turkey.

December,- ceed

feel

cept this challenge with courage upward trend may be carried for¬
ward through 1942."
Mr. Dewey

receive

The nature and

benefit

and full confidence in ultimate

amount

the

traditional

special attention we paid to busi¬
ness with that area,
but also be¬
cause
we
were able
to reap the

all

serve

1941 all departments of
the bank experienced the greatest

required creasing" said Mr, Dewey, "during

be

without the guidance of histori¬

guaranteed to labor and indus¬

of

will

will

problems.

Uruguay

military and naval supplies from

rights the United States.

management

and

and

but American business will ac¬

A lend-lease agreement between
States

control

regulation

face new and unusual

cal

;

1

*

strikes

to

Hebrew University in Pales¬

United

appoint the board,

ity and increasing governmental

made in support of visiting nurse

the

agreed

was

and

called

jointly by the Maritime Com¬
mission

through high production activ¬

largest

176,801,000

30

stead

undivided

The

Britain.

our

year

The

.

.

which

employes,

;

crew mem-

Maritime Labor Confer-

The

>

uniform basis

the lives of

crews

the

-

to
de¬

bers and war bonuses to be paid
to

7

proper

also

and

payment of war-risk insur¬

ance on
.

is

It
areas

of

of

The

1940.

the

$560,000,

result

per
share,
$146,225 or

the

growth in its history. The bank's
profits increased to $2,094,264 deposits increased during the year
from $1,746,907. Unallocated re¬ from
$43,858,880 to $50,693,014.
serve
for
contingencies
was Mr.
Dewey announced that the
of

219,561,000

__

the year was $242,018 or $16.13

Shows Gains In 1941

13, Chester R. Dewey, President
deferred of the Bank, explained that during

a

^$212,777,000
211,865,000
217,312,000

in¬

largest amount,

areas

...

are

Additional profits on
$816,84-3, which

$772,478

now

went

907,357.38

$

;

not included in gross earn¬

dends

in

beneficiaries

third

1941—

Jan.

31

$2,562,235.90

1942

ft

.

•

ACCEPTANCES, JAN. 15,
Dealers'Selling Rates

Mar.

securities.

'

charitable

Total_____$145,719,000 **

$1,832,000

fol¬

ings, were applied as follows:

comprising the Community Trust,

bombed

$54,018,000

month,

MARKET RATES ON PRIME BANKERS'

Days

18.143,000 "

"

Dollar exchange
Based on goods stored in or shipped
between foreign countries..

$1,776,938 as compared with $1,- earnings of the foreign department
of the bank almost doubled and
642,268.
$65,368, went to
In conclusion, the report had the the earnings from the trust and
the Salvation Army which used
clearance i departments
substan¬
The Board, which is set up as approximately 35% of it in sub¬ following to say:
tially increased as did the income
the result of a petition to the sidizing the furnishing of approx¬
Our nation is at war. The pri¬
from loans and investments.
;•
President by the Maritime Labor imately 500,000 meals at less than
mary responsibility of manage¬
He also stated that the develop¬
Conference on Dec. 19, is em¬ cost.
ment of every American busi¬
Through the American Red
ment
of
closer
relations
with
powered by agreement reached Cross, the Trust paid- $50,000 to
ness institution is to contribute
Latin
America
contributed
im¬
tV by employers and employes in the Women's Voluntary Services
to the fullest extent to its suc¬
the American merchant marine in
cessful prosecution. The econ¬ portantly to the business of the
London to assist girls in the
bank /'not only because of the
to settle differences that may
omy will be greatly stimulated
In advices Jan.

time Commission.

CREDIT

OF

28

tax.,

share)

$137,662.

cumula¬

since

grants

912,000

$14,439,000.

year

NATURE

Feb.

are as

675,000

>

_™.^„™,™™™

*-» *•»

for

744,000

115,000

City

Increase

1,952,000

5,399,000

665,000

Kansas

Grand

1,248,000

4,585,000
■

10

securities sold of

paid out in 1940, it was announced

Dr.

2,951,000

$255,402,175
248,095,184

($12.96

earn.

per

+ 43.9

+ 22.1

Frank" P.

and

Commission

of

11,010,000

3,317,000

3L.

deposit insur._ 1,654,878.52

Net
+ 2.2

City+ 0.1

Labor, Captain Edward Macaulay
of
the
United
States; Maritime

the

143,729,000

4, Cleveland

™„™™™.

Jan.

Binghamton-

Philanthropic appropriations
made by The New York Commun¬
ity Trust in 1941 rose to $398,504,
exceeding by 75% the $222,964

of

$22,704,000

10,448,000

„.™___™

year, ex¬

Albany-

Johnson

$22,031,000
124,414,000

9,924,000

Philadelphia

July

recoveries,

STATES

122,496,000

New York

3

totaled

lows:

SchenectadyTroy
+1.0
Syracuse
+0.4

—

com¬

$25,004,,000

Boston

2

150

-

As

DISTRICTS

Apr.

clusive of

+ 1.3

Rochester

OUTSTANDING—UNITED

Sept.

City 7f.

-

Steelman

Discounts

15.

Dec. 31, 1940

and

years,

Jan.

for Dec. 31 follows:
RESERVE

Dec. 31, 1941

1939

Our

NYv Community Trust
Ship Labor Disputes
Ups Payment In 1941
R.

10

v

811.

% Change

Board Named To Settle

Dr. John
Department

to

issued

Nov. 29, 1941

port¬

$36,281,004 at the close of the
year as compared with $34,058,-

Profits

of

end

York

180

cluded

Appointment

our

FEDERAL

Re¬

year

New

ACCEPTANCES

Federal Reserve District—

securities

31, 1940. Of

DOLLAR
BY

54.8% in 11 to 15 years.

to Dec. '41

Dec. '41

BANKERS'

Own

Government

Dec.

16.5%

Dec. '40

% Change
Empl.
Payr.

S.

of

Bank

a year ago,

The Reserve Bank's report

folio 28.7% mature in five years,

concerns.
Nov. to

Federal

$70,457,549 at the

on

Reserve

the Dec. 31 total is $14,439,000 below Dec. 31t
1940, when the acceptances outstanding amounted to $208,659,000.
The increase in the month-to-month analysis was caused
by
gains in credits for imports and exports, while in the year-to-year
comparison credits for imports, domestic shipments and domestic
warehouse were higher.

compared with $53,931,784 held

plane factories and at plants
making
instruments
for war
equipment more than equalled
the

the

having increased, respec¬
tively, since Nov. 1, 1941, from
223/4% and 5%.

air¬

at

with

rates

New

Federal

which

reserve

26% of demand deposits
6% of time deposits, the

and

trades,

employment

the

compared
Included in

as

resents

payroll

clothing

is

bankers,

York, which
under present regulations rep¬

district, where metal

to

and

and

Bank of New

serve

industries ordinarily are subor¬
dinate

item

bank

the bank is required to keep on

City

the

in

Even

Reserve
banks

$65,981,080
$70,144,090.

with

employment but payrolls in
both districts were higher in
December.
Metal
industries
increases.

from

was

in

contributed most of the

statement of your bank

Federal

due

little net change

showed

the

pared with

to

Compared with $148,033,218 at
the-close of 1940. Cash on hand,

lay-offs in the steel
heating apparatus indus¬
The Syracuse and Bing-

areas

volume of bankers'
dollar
acceptances outstanding in¬
$630,000 during December to $194,220,000 on Dec. 31, ac¬
cording to the monthly report of the Acceptance Analysis Unit of

report
indicated

at Dec. 31, 1941, shows deposits
at the year end of
$160,709,500

chiefly to

hamton-Endicott-Johnson

The

creased

1

The

plants making airplanes, nonferrous metals, ships and other
war materials.
Employment in
the district fell off a little, due

tries.

The
no

stated:

at

and

13.

are

Acceptances Outstanding

On December 31 Total $194,220,000

report

net in¬

a

Jan.

on

losses in the bank's assets. As
the bank's condition the

payrolls due to gains

in

crease

showed

area

meeting

the said that there

for

reports

Endicott-

have

may

either

to

re¬

not explained by

but

•

few

A

,

Payrolls Higher In All Districts

Mil¬

Commissioner

November.

ler's

were

:'J/o

■

higher in December than in

most

341

7

to

He

Ambassador

be
was

named

to

to

suc¬

John

V.
A.
MacMurray,
resignation the President
accepted in order to avail him¬
self of Mr. MacMurray's service

whose

added:

>
\
in Washington in view of his long
J" Our operating income for 1941 experience in the Far East and
^amounted to $165,492 or $11.03 ...
ear East.
Both men are at
per share,
as
compared/with
$102,039 or $6.80 per share in present in the United States. Mr.

These

1940.

results

are-after

Steinhardt

has

held

the

Soviet

increased
pay¬
post since March, 1939, when he
for
deposit
insurance,
succeeded Joseph E. Davies. Prior
amounted to $2.49 per
to that time he >*as Minister to
ana Federal
and State

substantially
ments

which

share,

income taxes of $1.51 per share.

Sweden, 1933-37 and Ambassador

After taking

to

on

offs

sales, of
on

into account profits
securities,

charge-

loans and recoveries, the

J:

Peru

1937-39.

The Senate

on

this nomination.

Jan. 12 confirmed

Thursday, January 22, 1942

CHRONICLE

THE COMMERCIAL & FINANCIAL

342

Dec. 31, 1941 compared with
$33,413,247 at the end of 1940. An
increase
of $63,685,023 jm , loans
during the year, Mr. Colt "said, was

SUPPLY AND DEMAND OP ALL. OILS
•J*s

Weekly Statistics of Paperboard Industry

3,709

5,952

4,879

58,122

50,712

287

296

283

3,146

2,868

129,636

132,393

112,299

1,337,157

1,296,022

4,321

4,271

3,743

4,003

3,869

*

4,705

.

production

Daily average

,

.

Crude petroleum

MILL

Received

Period

Remaining

Tons

-•

528.155

167,240

70

71

129,466

69

70

Crude

453,518

429,334'

449,221

520,907

456,942

193,411

70

70

682,490

624,184

247,644

76

72

508,005

509,781

236,693

79

73

Kerosene——

-

72

73

Distillate fuel oil

74

73

Residual fuel oil

72

73

468,870

470,228

670,473

648,611

184,002

79

73

Wax.

488,990

509,945

161,985

77

73

Coke

151,729

71

73

Asphalt

202,417

75

479,099

464,537

—„—

——

608,521

261,650

652,128

571,050

337,022

April

726,460

447,525

83

May

656,437

602,323

488,993

84

June

634,684

608,995

509,231

88

86

February

—

548,579

;

*

v.

»

Losses-

u-: i

October

$633,372 represented net profits on

7,680

securities

in

count. As

of Dec. 31, the

.t

*

*

69,928

,2,192

70,597

188

:

*

*

Daily average

2,257

2,988

-

17,703

♦',

-

*

3,874

—

:,h;

♦

116,229

1,205,720
•

\

3,599

807,440
649,031

576,529

94

630,524

578,402

Q4

831,991

568,264

99

Natural gasoline
Refined products—.—;

Crude petroleum:
Refinable in U. S

November

640.188

649.021

554.417

98

December

743,637

760,775

530,459

243,679

i

243,735

!

9,869

12,257
6,102

6,102

4,557

-

285,302

291,805

285,302

567,464

550,244

567,464

93

291,805

5

12

—

July 19

Aug.

Aug.

Sept.

Sept.

550,902

160,609

572,532

92

572,635

93

587,498

91

592,840

92

83

162,964

584,484

94

83
84

•

157,032

163,284

576,529

97

147,086

133,031
166,781

591,414

80

84

98

84

Long Beach

176,263

166,797

583.716

99

84

Wilmington

155.473

163,915

578,402

98

85

Rest of State-

176,619
159,337

168,256

Oct.

4

582,287

100

85

11

164,374

575,627

99

85

18

167,440

165,795

574,991

98

86

25

165,279

168,146

568,161

100

38.6

12,907

15,523

38.8

38.4

1,268

13,504

14,715r

87.6

87.3

2,414

28,011

27,689

485.5

486.9

13,379

156,251

147,220

650.6

651.2

18,231

99

86

97

86

29

Dec.

6

..i—

13
20

Dec.

27

570,430

99

550.383

96

87

164.875

554,417

101

87

Rodessa

166,080

567,373

102

87

163.226

553.389

101

88

149,874

166,948

535,556

101

124,258

523,119

76

140,263

530.459

166,095

527,514

101

of

the

prior

week

In November—Crude Runs To Stills Decline

Louisiana

Coastal
above

in
The Texas Gulf

major part of the increase in output in November was

400,000-barrel

set

been

records

new

but

first time

and

Mississippi

exceeded.
Illinois

9.2

9.7

248

3,032

2.990

30,554

35,029

34,707

37,763

■7'

coupled with

a

drawal

84.2

:

4.602

4,717

*

2,880

'

'j

:

*

1,370
-

—L—

„

6,391

76,241

70,406

419.4

12,445

141.502

143,198

48.4

1,319

45.7

:..

<

*•'

k

V.

V

■

•

'394.3

9,590

273.8

6,682

371.2

l

:A-

.11,042

■«

'

"

120,640

%

'

77,981

129,963

#l

24,345

L—2,545

84.8

81.5

1,974

25,129

329

11.0

10.9

426

4,393

6,130

9,981

327.5

9,314

'103,929

102,871

>

332.7

a

45,175

1,505.8

1,459.2

39,028

460,084

453,198

270

9.0

10.0

264

3,131

Total Texas—.
_

.

.

Wyoming:

stocks

barrels in October to virtually

ending Dec. 31, 1941, lists net
earnings
from
operation,
after
providing for expenses and taxes,
at

$2,004,097, which includes re¬

subtracted

crude

of

oil

from

around

2,400,000

income

$2,239,089.

27,146

23,391

$2,137,500 for the year, there re¬

96

1,535

259

mained $101,589 which was added

4,069.2

"107,137

1,275,889

1,242,442

410

4,111.8

-

-

,

Nebraska (145), Tennessee (1), and Utah (-).

After payment

undivided

to

Dec.

31,

nothing in November.

1

stills declined for the first time

to

STOCKS

since March; the November average was 4,051,000 barrels, com¬
pared with 4,089,000 barrels in October.
The chief occurrence in
yields of products in November was a gain of 1% in gasoline, the

Corp., class A,
(par $300)——

Merchants Acceptance
Boston

Athenaeum

Transacted by R.

27
5

of 45.2% for November being the highest since November,

the publication of import and export fig¬
figures are given
the total demand
for motor fuel for November, 1941, was about 56,900,000 barrels, or
11% above a year ago.
This was nearly a "normal" gain, reflecting
principally the lifting of restrictions in the eastern States.
The high
production rate for motor fuel resulted in an increase of nearly 5,-

Wednesday, Jan. 14;
,V

STOCKS
Knitted

Padding

Fall River

Co

$ per Share

r~r

Electric Light Co.

(par

$25)—————

15 'A
48

'

BONDS

$1,000

The prohibition against

$ per Share
.
7
19°

.

Springfield

L. Day & Co., Boston, on

1939.
1,000

Lynn Realty Trust

/•'

5s, May, 1953—

Lincoln Building Corp. 5V2S,

Nov.

on

30,

Indications

that all branches of the company
were

As

tillate fuel oil
with

a

try.

Also

that

on

gain of about 15%

According to
petroleum

in

the

ago.

demand

1941,

as

*

for dis-

compared

compensated by gains in the rest'of the

in the East Coast was

for

material decline

the East Coast in November,

year ago was

a

a

coun-

in the demand for heavy fuel oil

matched by a similar gain elsewhere.

and

products

in

November,

1941,

60.4,

was

com¬

bank

was

ises "we

The
was

crude-oil

4,590,000

capacity represented by the data in this report

barrels,

hence

the

operating

ratio

was

88%,

pared with 89% in October and 82% in November, 1940.




com¬

declarations

for

while

the

that

not able to make prom¬

are

quite optimistic." He

"believed" that the 60 cents quar¬

terly dividend rate

now

in force

-

paid with stock

Bankers Trust Co.
Earnings Down Due To Heavier Taxes

S. Sloan Colt Reports

1941
S.

Sloan

Colt,

President of Bankers Trust

Company of New

of Agriculture
7 that Com¬
modity Credit Corporation had
made 956,122 loans on 1,809,160
bales of 1941 crop cotton through

reported

Jan.
loans

on

Jan.

3, 1942. Of the total, 99,314
on 357,433 bales were made

at their annual meeting on Jan. 8,
by cooperative associations.
that the bank's gross operating income for the year amounted to
$19,468,518 in contrast with $18,559,301 earned in 1940. Total ex¬
penses, however,
increased by $1,340,897 over the year 1940, of D. J. Winton Named
which $1,023,197 was
due to larger taxes and Federal Deposit
New Zealand Minister
Insurance Corporation assess-f
York, reported to stockholders

heavier tax

burden, Mr. Colt explained,
operating earnings for the

net
past

declined to $7,8-37,486 com¬
pared with
$8,399,166 in 1940.
These earnings were equivalent to
$3.19 per share on the 2,500,000
shares of the bank's capital stock
year

pared wtih 61.7 in October and 49.3 in November, 1940.

profit at present.

declared

rr—rr~*}*£
66 flat

——

August, 1963,, reg. 50%

a

dividend

he

1941 Cotton Loans

ments. Because of this

the Bureau of Labor Statistics, the price index

showing

to

The Department

87,278,000 bar¬

about 7,750,000 barrels above a year

or

are

were

Dec.

stockholder's

annual

will be maintained.

in any form is still effective, hence no demand
in this report.
However, it may be calculated that

000,000 barrels in inventories, and total stocks

on

meeting Jan. 13, Mr. Sherer said

ures

rels

with $5,356,562

1942

Shares

to

the

At

Wednesday, Jan. 7:

L. Day & Co., Boston, on

Shares

Products

profits. Thus on
undivided proffts
$5,458,151,
which

1941

amounted

of dividends of

31, 1940.

Auction Sales
Transacted by R.

$2,029,738 credited to
leaving the net

accounts,

2,068

123,355

flncludes Missouri (4),

8,323

this

of net
profits from sales of securities,
less
taxes
thereon,
making
a
total of $4,268,827. From this is
reserve

8,158

730

To

added $2,264,730

5.7

5.0

:

"ofv $389,868.

coveries

amount is

82.1

78.3

tl50

Total United States—

Ex¬

4,755

2,348

Total Wyoming

Corn

-10.313

45.3

Other

the

4,730

42.4

1,272

O utt bid.

of

14,258

—

•

10

crude runs

income

Net

change Bank Trust Co., New York
City, in 1941 was' $2,239,089, ac¬
cording to the anual report to
stockholders,
made
jointly
by
Dunham
B.
Sherer,
Chairman,
and Ralph Peters, Jr., President.

compares

Refined
average

Corn Exchange Bank
Trust Co. Earnings

928

14.9

13.5

404

Salt Creek

p;

21.4

22.4

Lance Creek-

figures,

present emergency and that
the bank would spare no effort to
this
cooperation increase
ingly effective.
-

make

3,163

i..

—

Virginia

the

" *

111,908

83.646

380.7'

V',«

122.341

290.7

'11,420

15,909

15,223

V:*'

'

405.9

8,721

—^

3.064

V
■

12,179

—.

100.9
234:3

425.3

12,758

.

average

refinable

from

average

36 005

103.5

Rest of State

♦Final

6,144

35,891

235.4

—

—

organization of Bankers

with government and industry in

The income statement for the year
86.4

of State

UJL

6,843

"

.

2.591

—

Gulf Coast-

West

-

3,884

13,129
-

'

City

Texas:—
.

■

__

crude-oil production in November,
decline in crude runs, reacted to reduce the with¬

gain in daily

Daily

18,452

379

just

down to

was

94,631

barrels daily.

400,000

The

has

mark

.

14,602

1,316

59.5 :~ ?-

—

105,138

;

15.0

AuvOll

showed a gain.
of 405,900 barrels daily, the

56.9

8,608

13.8

-

-

414

..

record

331.7

3,385

Oklahoma

the entire

Trust Co. had been geared to work

6,356

15,940

3,048

Panhandle——.

average

major area

344.2

4,821

18,445

111.0

Oklahoma:

,

stockholders that

told

72,335

511

312.8

.East Texas.

crude-oil production again established a new
record, it. is reported by the Bureau of Mines, U. S. Department of
the Interior.
The total output in November was 123,355,000 bar¬
rels, the daily average of 4,111,800 barrels being 42,600 barrels
higher- than in -October.
The.Bureau's report further., states; :

the

81,872

*

547

Rodessa—

new

6.587

1.510

-

13.0
56.8

448

West Texas—

a

261,9

13.4

62.3

New Mexicoo

New Crude Oil Production Record Established

every

273,5

>:•

22.1

Total Oklahoma

Texas, where

4,760

21.6

.

Pennsylvania

Coast reached

60,207

4,368

648

Seminole

The

75,304

424

74.7

Rest

Daily

5,622

12.8

1,707

Ohio

orders

251.6

11.8

2,240

New York-

plus orders received, less production, do not
necessarily equal the unfilled orders at the close.
Compensation for delinquent reports, orders
made for or filled from stock, and other items made necessary adjustments of unfilled order*
Note—Unfilled

248.5

10,326

_

the following percentages
deposits: maturing in less than
five years—22.85%;
five to ten
years—15.65%; over ten years—
of

4,397

Mississippi—
_

of

137,094

Michigan

88

86

162,493

—__

6,056

57.3

Montana

147,419
10—

609

404

_

_

Total Lousiana

88

1942—Week Ended—

Jan.

17.2

8,204

Gulf Coast

Government securities

U. S.

$585,614,943 in the investment ac¬

-

Louisiana:

88

116,138

——

1—

16.3

Rest of State..

149,021

...

Dec.

165,397

160,889

181,185

—

1,686

121,806

356

—;

169,111

—

142

10,229

7,455

_

——_

Kentucky—

87

145,098

15

22

Nov.

Dec.

568,264
576,923

1,499

6.0

422.7

191

_

Kansas

165,420
159,860

205,147

210.673'
J

6.3

489

156,394

Nov.
Nov.

19,517

1,170
-

403.9

_

Indiana

170,597

—

u

23,622

38.7

California

Total

86

169,585

1
8

♦1940

,

24,023

2,628

Illinois

Oct.

1941

•i

;

1,165
V,;

——_

Colorado

Oct.

Nov.

January-November

'

1940-

2,066

71.6

••

California:

Oct.

Nov.

72.1

•

Kettleman Hiils

589,770

♦Nov.,

Daily av. Daily av.

Total

Arkansas

con¬

count at the end of the year repre¬

Mr.- Colt

Oct., 1941

November, 1941

.y:^: ''-'v

:f-P

of

reduction of assets.

a

as

4.69%.

FIELDS

PRINCIPAL

(Thousands of barrels)

164,057

—

AND

STATES

BY

PETROLEUM

CRUDE

OF

83

162,889

PRODUCTION

83

159,894

JFinal figures.

tDecrease.

♦Not available.

82

159,272

174,815

—
——

—

81

169.472
158,403

9

16
23
30
6
13 1
20
27

Sept.

82

92

159,844

—,.

Aug.

Sept.

77

182,603

2

Aug.

74

542,738

156,989

168,431

^

—

July 26
Aug.

529,633

131,531

the published statement

on

sented

143

135

.Days' supply

82

129,019

149,197
147,365

-—

.

548,178

'

1941—Week Ended—

July
July

•

289,704

550,244

Total, all oils

ac¬

general

714,928 and this has been reflected

263,803

10.203

4,557

12,257

4,870

243,679

263,803

10,203

V,

Heavy in California

investment

the

account amounted to $15,-

reserve

dition

STOCKS

737,420

839,272

—

•

*

Total domestic demand—.

509,231

1

count

$1,317,561 for the .year, of which

8,740

•

5,937

♦

_

659,722

...

September

general reserve ac¬
showed a net increase of

6,331

::

*

298

750

6,774

6,410

642,879

July

August

Bonds.

bank's

26,869

0

1,783

82

857,732

#

439

...

..

pas

Miscellaneous

;•

81

March

Tax: Anticipation

Notes and Defense Savings
The

to

depositors

by

States

•

498

*
_

Road oil..

629,863

673,446

Reserve

United

22,815
i,i62

as

requirements of the
System, and to

reserve

subscriptions

305.885

110
»

_

Still
——

141,149
V;-

*

2,449
•

1941—Month of—

January

*

29,980

_

_

_

Federal

60,968

16,848
-

_

tional

543,038

*

-

—

December

*'

$1,375,481,863,

to

with $1,460,558,560 on
Dec. 31, 1940. This decline in de¬
posits, .Mr. Colt explained, was
chiefly due to withdrawals by
correspondent banks to meet their
increased use of funds and addi¬
compared

74,053

6,768

Lubricating oil.

amounted

49,'422

*

49,113
;V

O

*

1,329,195
3,968

6,090

lit

./

162.653

^—

November

:.v♦

_

*

196,037

163,769

.

October

;s

Domestic demand:

587,339
•

452,613

:———.

*

Refined products

>

487,127

544,221

—

August
September

'jy-

*

3,805

2,840

Motor fuel....

——

April

"

♦

;

4,204

V

*-■■■.,j.

*•

petroleum

420,639

.

;—

',

Exports:

71

137,631

1 579,739

.

72

:

March

41,626

112,403

-16,877

3,962

"

1940—M,onth of—
February

4,092

126,124

»

Daily average

January

1,370,821

3,975

•

Total demand-

Cumulative

Current

Tons

including $172,420,270 in the

Government "War Loan" Account,

36.870

119,247

*
*

2,066

stocks, all oils

Decrease in

3,016

37,929

'♦

r

■

#

■,

*

$

3,932

the end of thq

Gross deposits at

Percent ol Activity

Orders

Tons

-

...

1?

*
'

ACTIVITY

Unfilled
Production

v.

year,

_-.T

supply, all oils—

new

largely due to loans directly and
indirectly connected with defense
and related activities.

«

Refined products

Daily average

Orders

July

3,820

Imports:

Total

STATISTICAL REPORTS—ORDERS, PRODUCTION,

June

1,275,889

3,571

_

Total

industry.

May

107,137

4,069

gasoline

Benzol

each week from each
member of the orders and production, and also a figure which indi¬
cates the activity of the mill based on the time operated.
These
figures are advanced to equal 100%, so that they represent the total

|1940
1,242,442

•126,145

5,994

„—.

Daily average

dustry, and its program includes a statement

1941

.11940

123,355
4,112

petroleum

Natural

January-November

November,

1941.,

1941

Domestic production:
Crude

: October,

November,

SUPPLY

NEW

herewith latest figures received by us from the National
Taperboard Association, Chicago, 111., in relation to activity in the
paperboard industry.
The members of this Association represent 83% of the total in¬
We give

on

(Thousands qf barrels)

,

compared

with

$3.36

per

share

earned in the previous year.
After

providing for dividends of

$5,000,000, the balance in the un¬
divided profits account showed an
increase
of $2,790,220, bringing
total

capital funds to $111,203,466.
profits of $36,203,466

Undivided

President

Roosevelt

recently

sent to the Senate the nomination

of David

J. Winton of Minnesota

to

be the first American

to

New

Vice-President
Lumber

Mr.

Zealand.

Co.

of

Minister

Winton

the

is

Winton

of Minneapolis.

27

Dec.

Says Controls Stop
Excessive

North American Prices Up

r:

-

Speculation

Hold Elsewhere

—

and Cornell University, which prior to the
collaborated in the publication of a world com¬

General Motors Corp.

European war had

year

margins on speculative

increased

transactions helped to

laneous, 18.

cushion the

impacts and keep

shock of wartime

moderate.
Fortunately from the standpoint
report

the

stability,

market

October

;

As

the customary checks by

ure,

of

CEA and

its

131

132

131

136

132

140

120

150

115

111

120

132

144

120

121

145

116

122

135

153

122

145

117

110

120

139

158

124

146

118

'HI,:

118

142

164

126

120

119

144

168

126

:,4x ;7XXX^7
114
114

127

126
127

150

119

122

129

121

Ill

•

rl20

150

126

,

-■

111

119

144

fl72

113

119

147

171

other

showing

of

reports received

120

123

ii 114

119

154

176

122

150

125

115

119

156

180

125

129

117

120

156

189

129

Short

sales

121

137

A 155

131

119

121

155

191

132

Other

sales

1121

T141

rl56

rl36

rl25

121

rl42

157.

138

rl55

194

rl36

123

156

196

138

Total

H57

138

tl30

rl23

156

203

143

t. Round-Lot

143

rl58

139

132

126

156

207

rl40

158

141

133

124

157

209

141

143

160

138

123

157

145

and

'■

141

143

rl59

137

124

157

209

143

7-160

139

123

157

*209

144

122

7-144

*160

7-139

123

157

123

144

*160

139

123

157

"141

...

Preliminary,

r

123

123

*160

140

123

157

„_

141

123

157

X—

150

■,'<:

floor

purchases

Total

Short
Other

Revised
;

sales

make

218,620

English Financial Market-Par Cable

by

adjustments necessitated

changing conditions in agricultur¬
al marketing, the report states,
"the
Administration sought the
active
cooperation of
the ex¬
changes, of processing and trade
interests, and the farm organiza¬
tions.
It has acted on the as¬

markets
with proper safeguards and; im¬
proved controls will remain open
sumption that the futures

the past week:
Tuesday Wednesday Thursday

'

floor

■%-j.X

;v-XXXXXv:X"X; Saturday
Siilver,
Gold.

oz.

p.

fine oz
2Vs% —

p.

Consols,

V/2%

British

The

L.

w.

1960-90.

4%

British

d

Friday

-

sales
sales

Total

23%d

23 %d
168s
£82%

23 %d
168s

23 %d
168s
£82%
£105%

23'/ad \
168s
£82%

168S

sales

oz.

.

1^216.430

Total purchases

4.;

sales

Other

sales

Totai

2,78

242,533

-

;

Short

£82%

£105%

25,730
216,803

b

—

£82%

£105&
X £115

272.600

'

Total

4.

£105-ft
£10514
£115%
£115Va
£115%X
£115%
(in cents) in the United States on the same day has

.

Closed
Closed

of silver per

price

Monday

Closed
168s
Closed

■

,

Short
Other

.

■

2.69

249,720

.

initiated off the
V:;r' '
•••'*■ '

purchases

Total

at London, as

„

reported by cable, have been as follows

202,940

—_———i
b

1,008,043

«—

13.08

1,210,983

sales

been:

(Foreign)

Y.

N.

Bar

35%

35%

:

X

35%

35%

35%

_

..

35%

U. S. Treasury (newly

render/continued hedging and X mined)
risk-bearing services during the

and

and in the period after
X-X-''7;X > X';;
X: '7
Commenting on the report and
the cdriditidri of the markets since
the outbreak of war, Mr. Mehl
said:
XX;;//j;,;.:;/X ./X-.

securities, &c

daily closing quotations for

The

—X——

—

Other transactions

3.

31,100

c—

b

-

-■

help

249,810

...—-

1,

sales

Total- sales

To

initiated on the

Other transactions

148

*160

7.61

718,730

sales

Total

146

.

.

572,620

b

147

144

142

*142

——

sales

146,110

sales

Other

147

2.

10

694,020

purchases

Short
•

X—

in stocks
registered

which they are
Total

142

122

rl42

,

122

rl48

.

Specialists

in

7"'X-:

Transactions

Transactions of specialists

1.

;

meet the problems
growing out of war and also to

'■/

■.

a

9,280,400

sales

143

27—

*

4.

9,059,975

—

124

7 \i!X

3_

X Per Cent

X;

220,425
b

123

20

-t

rl22

127

145

122

r137

1943—

.

Round-Lot Sales

A. Total

122

6-.-—-—..

Dec.

v. ■.

„X;X ;

for the Ac¬
count
of
Members,
Except for the
Odd-Lot Accounts of Odd-Lot Dealers

13

Dec.

:.y; 4

For Week

;Xv:.:v77-:;-

■

Week Ended Jan. 8, 1912
\ ; "v
Total
'■

—141

Dec.

Jan.

for Account of

Transactions

Stock

^
X-',r•:v.■; ■
'XXXXr:XX;;:'X''.::-

Stock Exchange and Round-Lot
Members* (Shares)

the New York

Total Round-Lot Stock Sales on

;

150

140

Weeks end.:

comparable on the two exchanges.
total more than the num¬
entries in more than on#

•lassification.

rl42

■1941—

'•'•

In the various classifications may
because a single report may carry

number of reports

The
ber

rl52

fl40

December

520

496

registered are not directly

stocks in which they are

134

~

,!

291

'

131

October

Jan.

floor—

110

transactions are handled solely by
specialists In the stocks in which they are registered and the round-lot transactions of
specialists resulting from such odd-lot transactions are not segregated from the spe¬
cialists'
other round-lot trades.
On the New York Stock Exchange, on the other
hand, all but a fraction of the odd-lot transactions are effected by dealers engaged
solely in the odd-lot business.
As a result, the round-lot transactions of specialists in

120

138

41

227

,

York Curb Exchange, odd-lot

the New

133

Dec.

the

99

V 194

Reports showing no transactions

121

rl35

N. Y. Curb
Exchange
761

trans-

off

initiated

factions

4.

120

121

the

New York Stock
members. These

1,070,

on

-j;' 126

'

November

.

Reports

118

September

This

actions initiated

118

149

•

„

Exchange

■.

.

other
transth^ floor—'

showing

Reports

3.

114

125

■1.•

.

2.

111

123

110

,/"*1

v

109

113
113
113

N. Y. Stock

showing transactions as
specialists
4

109

119

—

and

follows':.

for

data

;

.

1. Reports

109

114

,

of specialists

account

following

the

available

3:

Total Number of Reports Received—

112

114

112

July
Augilst

importance

ministration.

112

113

115

June

precedence

given

was

cause

113

116

145

April

be¬
both to
the Office of Price Ad¬

work

116

144

March

May

CEA

conditions.

market

143

120

February

the positions

derly

120

the

for

transactions

published are based upon weekly reports filed with the
the New York Curb Exchange by their respective

data

y..

United

-120

January

of large traders
were
extended to include a de¬
tailed examination of the positions
of all traders in commodities such
as
cottonseed oil and soybeans
which were threatened by scarcity
conditions and the influx of irre¬
sponsible speculators and disor¬
on

__w._

1041—

additional defense meas¬

an

The

Exchange

Statu

118

December

X

■

erland

118

November

earlier
legislation for grains, cotton, and
other products.

J.—

September

already maintained under

den

118
.118
116

—

August

speculation in vital de¬
commodities similar to those

Swe- Swltx-

Zeal'd

1

/.

purchases, 119,128, instead of 52,578; and total sales,

ended Jan.

Note—On

118

120

—

July

excessive

New

ico

Java

odd-lot

reports are classified as

X7

118

May
June--

v

land

ada

X

1940—

portant commodities to the super¬
vised list late in 1940,
This en¬
abled the Commodity Exchange
Administration to set up market
controls and safeguards against

tralia

Mex¬

Aus-

tina

Congress added cottonseed
oil, soybeans, lard, arid other im¬

fense

(August, 1939=100)
Eng¬
Can-

Argen-

says,

Jan. 19 as follows:

1, page

the

Commission made

The

week

which are based on prices expressed in the currency

country, were reported

of each

price ranges relatively
7
of

The indexes,

X

■

week ended Dec. 13 (see
30) the Curb Exchange has reported to the

52,578, in place of 119,128.

'X.:■-X^

'

Jan.

should be total

government department." The commodities involved in¬
list of several groups, including grains,
livestock products, miscellaneous foods (coffee, cocoa,
tea, sugar, &c.)y textiles, fuels, metals and a list of other miscellaneous
materials
(rubber, hides, lumber, newsprint, linseed. oil, &c.)."
Weights assigned in the index to the different commodity groups are
as follows:
Grains, 20; livestock and livestock products, 19; vege¬
table fats and other foods, 9; textiles, 12; fuel, 11; metals, 11; miscel¬

important to
together with

effort

defense

the

of

that

livestock and

kets for commodities

for the account of Curb mem¬
of total trading of 1,567,435

.

SEC

"a comprehensive

clude

July,

12.09%

was

respect to the figures for the

issue

usually a

report

annual

shares

379,050

With

weighted uniformly for each country, according to its relative im¬
portance in world production.
The actual price data are collected
weekly by General Motors overseas operations from sources de¬
scribed as "the most responsible agencies available in each country,

covering
1940-June,
1941, to the Secretary of Agricul¬
ture, Mr; Mehl says e^tra work
and improved controls in the mar¬
his

fiscal

In

•

the

of

shares.

the list is the
Each commodity is

far as possible.

each country in so

for

same

10.69% of total trading of 7,794,940

1,665,865 shares, or

during the preceding week trading
bers

built upon 40 basic commodities and

The index is

played an important part in avert¬
ing
excessive
speculation
and
major price disturbances in agri¬
cultural commodities, J. M. Mehl,
Chief of the Commodity Exchange
Administration said on Jan, 16.

of

(revised) shares..,
On the New York Curb Exchange, member
trading during, the week ended Jan. 2 amounted to 499,690 shares, >
or 15.42% of we total volume on that Exchange of 3,241,440 shares;

The special wartime controls
modity price index, have resumed issuance of international price
put into effect in the agricultural
futures markets during
1941 at statistics, but on a different basis than before the war. Instead of a
composite index of world prices, these organizations now are pub¬
the recommendation of the U. S.
Department of Agriculture have lishing the information only as individual country indexes,

7

343

CHRONICLE

THE COMMERCIAL & FINANCIAL

Number 4036

Volume 155

—— ,

71.11

;

71.1171.il X

VX-; 71.11 X

7!.ll

•

71.11

Stock

Round-Lot

Total

and Stock

Sales on the New York Curb Exchange
Account of Members* (Shares)

Transactions for

,

Week

194'J

Ended Jan. 3,

emergency

The London Slock Exchange

the war."

which was done be¬
fore Pearl Harbor to adjust the
markets to defense needs has
been compensated in substantial
degree by the way the markets
have withstood
the impact of

the relative-

actual warfare, and

ly moderate price ranges
have prevailed
in most

7
:

which

commodities. To a considerable ex¬
tent the excessive speculation
and
wide up-and-down price
movements which prevailed in
some commodities in the spring
of 1917 have so far been avoided.

■

7

There must be no

relaxation of

vigilance in preventing excess¬
ive

speculation and erratic price

movements.

Short

,

Boots

Pure

British

Jan.12

Cons.

5

rord

£13%

£13%

41/3

41/3

41/3

41/3

Short

sales

35/6

35/9

35/9

35/6

Other

sales

£9

£8%

£8%

*London
Metal

Closed

Company..

Mid.

Vest

Short

£17%

Other

sales

76/-

76/-

£6%

£7%

£7%

88/9

89/9

89/9

52/6

52/1

50/1

32/6

31/9

31/6

Short

sales

17/3

17/3

Other

sales

£4%

£4%

88/>

52/6
31/6

17/3

17/3

mi

£4%

-

4

Total

tEx-dividend.

Other

3.

Total

Total

culture

of Agri¬
Jan. 6 that

Total

reported

on

95,166 loans made by Commodity
Credit Corporation, representing

The Securities and Exchange

Commission made public on Jan.

3.

bushels of 1940

busheft

665,186,

loan in 1938-39
farm

storage,

bushels

of

-

pledged

purchases

and

1940

40,706,620

on

There re¬

corn.

outstanding

165,157,.

loans

a

>- '"v-w-




total

of

190,990,268

on
•-

* • ■ *

the New York Stock Exchange

and the New

r

these

*

figures, the Commission explained.

Trading

on

the

Stock

Exchange for the

account of members

(except odd-lot dealers) during the week ended Jan. 3 (in roundlot transactions) totaled 2,427,413 shares, which amount was 13.08%
of total transactions on the Exchange of 18,560,800 shares.
This
compares

with

member

trading during the previous

week ended

6,860

sales

250,555

b

.i—rttwr———

for the Account
20

short sales
other sales c

Customers'
Customers'

128,697

128,717

Total purchases

.

sales

Total

•

The

term

49,754

—

"members" includes all

regular and associate Exchange

including special partners.
Shares in members' transactions as per cent, of
calculating these percentages, the total members'
twice the total round-lot volume on the Exchange
members' transactions includes both purchases and

firms and

included with
«

!._

twice total round-lot volume.

In
transactionsi is' ^mpared with

lor the reason that the total of
sales, while the Exchange volum®

only sales.

b Round-lot short
are

members, thei*

their partners,

•

Includes

15.42

257,415

sales

Specialists

figures showing the daily volume of total

under

and resealed under

mained

bushels.11

corn

2.53

242,275

Odd-Lot Transactions
of

16

round-lot stock sales on
York Curb Exchange
and the volume of round-lot stock transactions for the account of
and 1938-39 resealed corn, were
repaid from Jan. 1, 1941 through all members of these exchanges in the week ended Jan. 3, 1942,
Dec. 27, 1941.
- ;
;
continuing a series of current figures being published by the Com¬
Repayments were made on 59,mission.
Short sales are shown separately from other sales in
100,371,806

—

36,310

sales

Total

-Trading On New York Exchanges

S. Department

610

35,700

b

sales

Other

Corn Loan Repayments

45,655

purchases

Short

X The U.

off the

4. Total

^

2.19

31,000

sales

transactions initiated

floor

•

value.

140

30,860

b

76/-

£6%

£7%

£4%
par

purchases

£6%

.

Witwatersrand

£100

39,835

sales

£17%

17/3

Areas

the

floor

£17%

76/-

dickers

J.--..-.——

26/-

Total,

10.70

190,105

sales

133/—

31/-

Molasses

25/6

6.110

183,995

b

transactions initiated on

26/—

£7%
"

Jnited

25/6

Other

2.

133/-

■•151/3

_

14/9

156,785

purchases

26/—

£6%

=

Royce..

Transport

Total

75/3

14, 9

Total

£17%

88/9

Rolls

75/6

which they are

132/6

76/-

Shell

25/6

-

in

26/3

£7%

r

14/9

25/3

£67/s

•

Mines..;..
Tlnto

75/6
...

.

133/—

25/£18

Ry.___

,,

75/9

15/-

133/3

Box

Rand

£9

£8%

25/3

Bay

Tob. of G. B. & I..

Imp.

Rio

£13%

15/—

Ltd

Hudsons

specialists in stocks
registered

£13%

-

76/-

Electric & Musical Ind...

the Ac¬

Members

Transactions of

35/9

& Co

Co

Distillers

X.

41/3

Beers.

De

count of

£68%

£13%

(S.)

36/9

84/6

1,620,720

Transactions for

£68%

Invest...

Courtaulds

Round-Lot

85/6

&

Min.

85/-

8.

£68%

Goldfields of S. A._

Central

36/9

Friday
Jan.16

a

1.613,810

sales

85/-

£65

W.

Jan. 15

Total

Per Cent

6,910

;

£68%

85/-

Tobacco..
ord

&

"Cable

Thursday

36/9

36/6

36/3

Drugs

Amer.

Tuesday Wednesday
Jan.14
Jan. 13

Monday

Saturday
Jan.10

sales

Other sa)es b

■■•4

day of the past week:

*Per

"

received by cable each

Quotations of representative stocks as

The work

X

Total
For Week

Round-Lot Sales

A. Total

1

1

sales which are

"other sales."
4<-1

A-

exempted from restriction by the
•

«

-

a- J

11V

il.1V.

..U. »t

Commission rule#

344

THE COMMERCIAL & FINANCIAL CHRONICLE

Revenue

Total Loads

Freight Gar Loadings During Week

Railroads

Southern

cars

the

corresponding week in

3.6%, and above the

week

same

in

1940

1941

was

189
740

727

572

Miscellaneous freight loading totaled
318,291 cars, an increase
cars above the preceding week, and an increase of
17,236
above the corresponding week in 1941.

Loading of merchandise less than carload lot freight totaled
139,844 cars, an increase of 16,731 cars above the preceding week,
but a decrease of 6,872 cars below the
corresponding week in 1941.
Coal loading amounted to
166,210 cars, an increase of 27,587
above the preceding week, and an increase of
13,858 cars above

cars

Coast
of

Columbus

the corresponding week in 1941.

*

;

Durham

Grain
of

1,421

and

grain

3,821

cars

Districts

the

aoove

products

loading totaled 35,842 cars, an in¬
preceding week, and an increase of

above the

cars

corresponding week in 1941.

preceding week, and

increase of 966

an

&

ing week in 1941.

\

Live stock loading amounted to
15,939 cars, an increase of 4,921
above the preceding week, and an increase of
2,895 cars above

cars

the

corresponding

in 1941.

week

loading of live stock for the
increase of

an

of 2,631

4,097

In

week

the

of

Western

Jan.

10

Districts

totaled

Piedmont

increase

an

2,821

2,761

286

265

281

265

producing by Emil Schram, Presi¬

142

,140

1,015

1,029

607

below

loading amounted to

the

preceding week: and

Coke

35

29

23

99

1,199

663

2,085

1,733

440

370

516

553

3,560

3,114

2,959

2,621

27,508

23,298

22,153

13,389

12,234

25,823

24,720

24,787

7,404

6,120

197

118

155

735

1,083

'•*
'

'

J:
L._

131

131

2,725

3,029

949

&

278

2,584

_

1,080

475

___

Potomac—

186

?

;

351

847

•/.'

8,710

23,315

1,510

536

491

136

117,539

112,985

r-4

i

of

of

1,440

an

cars

Northwestern

District—

'■

v ■:

to

5,706

declared.

Milw., St. P. & Pac
St. Paul, Minn. & Omaha'—.
Missabe

&

North

Great

Western

&

827

Chicago

696

'

CO

769

701

101,992

86,538

78,890

the

cars

' 115,517

14,814

10,989

further

10,733

2,598

2,452

2,907

2,946

21,053

20,316

19,620

8,341

4,557

4,167

4,460

3,097

1,283

885

867

302

Moines

Range

Eastern

Dodge,

Shore

&

Atlantic

Bay & Western
Superior & Ishpeming
&

;

625

St.

620

570

450

9,391

I 8,371

9,118

336

172

150

9,842

573

Louis

255

M

;•

„

Portland

&

Seattle.,

601

„

3,407

added.
sion

2,889

V 661

;

243

districts reported

ing week
districts

in

96

i

•

i:

2,142

1,851

make

2,623

2,354

that

9,734

9,288

3,781

3,498

except

the

increases

Eastern,
the

over

and

Southwestern

corresponding week
1942

Week

of

January
Week of January

3
10

and

290

78

,•

1,582

1,498
80,313

211

2,086

82,210

50,423

—;

;

_

North
Peoria

711,635

668,241

1,325,806

1,261,166

is

a

summary

of

the

FREIGHT LOADED

RECEIVED

FROM

CONNECTIONS

Freight Loaded
Eastern District—

:

Pacific

Peoria

1942

,

Chicago, Indianapolis Si Louisville

&

&

Western

Toledo

1942

590

1,152

Coast

Shore

Line.

'■

1,923

2,237

1,359

1,515

8

10

1,608

1,300

3,686

2,010

104,945

98,828

64,412

54,983

Island

143

9,177

8,032

297

3,398

12,245

13,257
7,108

.8,016

176

130

2,487

2.170

1,849

1,728

1,378

1,378

9,577

9,216

7,166

3,206

3,124

3,190

4,749

449

1,931

29

43,700

40,172

42,367

960

736

821
120

378

377

3,768

2,912

2,556

16,186

15,627

14,374

10,976

49

166

7,282

5,429

■;

328

9,668

13,802

10.211

2,726

2,203

3,344

6,795

6,856

3,948

3,036

3,221

4,012

3,410

4,785

4,134

101

124

161

32

&

Southern

;

V

100

15

17

52,052

1,108

1,878

12,375

Jan.

cars

14,

33

52,657

figures week of Jan. 3, 1942

1942,

238)

page

of revenue

cars

received

from

11,751

read:

to

connections

freight loaded and 1,820
Note—Previous year's figures revised.

1,673

5,217

of

3,051

13,244

1,095

5,654

5,837

110

'

4,925

.

2,604

48

29

48,749

371

42,684

37,907

and

cars

3,574

add

to

received

(see "Commercial & Financial
of revenue freight loaded

Northwest

from

District,

2,160

connections.

November Production Of Natural Gasoline
Up
The

387

451

978

1,538

6,101

7,067

6,656

4,600

6,019

5,846

production of natural gasoline and recycle condensate
increased in November, 1941, according to
reports received by the

5,099

5,940

574

608

Bureau

528

56

32

340

437

426

231

246

837

796

1,213

1,926

1,960

566

552

960

5,587

9,250

3,888

,3,675

3,751

154,082

158,167

150,910

173,656

Mines,

172,618

Stocks
on

_

Cumberland

18,707

continued

Nov. 30,

17,388

2,007

1,474

326

7

1,541

16

15

6,193

6,448
486

(Pittsburgh),

,

The

daily

in

Louisiana, the

Oct. 31 and

on

AND

657

44

72

321

31

39

Nov.

Oct.

1941

1941

OF

182

31

51

837

646

513

2,087

1,111

1,020

1.412

72,482

66,848

61,133

47,489

15,261

42,843

15,202

13,886

19 522

Oklahoma.,

'3,199

3,289

Kansas—

7,841

7,132

17,511

3,861

3,703

Texas

Louisiana

141,078

117,196

109,607

invest¬

without

money,

being

result

is

that

largely

are

is

invest¬

frozen

made

and
diffi¬

more

cult from the view point of the
investor's portfolio.
Most large

investors
are
simply
sit¬
ting tight, drawing what satis¬
faction
they
can
from
the

knowledge of 'paper profits,'
but preferring possible. event¬
ual loss through price declines
to the certainty of immediate
loss through capital gains taxa¬
tion."
Since it is
movement

time

a

spend

an

of

obstacle to free

capital

from

in¬

industry, the capital

it

when

is

essential

to

large amount of capi¬
for new plans and equip¬

tal

a

ment.

Mr. Schram said he
tent

to

leave

technical
to

the

was

con¬

discussion

objections

to

the

of

tax

experts, but asserted that he

was

convinced that there

was

a

Jan.-

Nov.

Nov.

1941

9,320

7,890

to

as

segregate completely
gains and losses from

to the time

1940

At plants

At

re-

& Ter-

fineries minals

6,636

82,028 —73,370

Oct.

714

31, 1941
At plants

At

re-

& Ter-

fineries minals

5,628

element, and to im¬

lower flat tax

or

a

lower

graduated tax upon net capital
gains. With a few further re¬

finements,
I

am

sure,

this

change

have

would,
desirable re¬

sults," he said.

4,231

840

7,350

6,924

61,077

30,073

4,578

574

5,670

450

33,097
,

"The law should be modified
so

pose a
Stocks

'

Appalachian—
111., Mich., Ky

19,975

20,185

GASOLINE

Nov. 30, 1941

East Coast

1,691

2,422
,

deterrent

regular income, without regard
NATURAL

Gallons)

Jan.-

288

154,334

of

'

'

136

161968

STOCKS

Production
-

1.516

cash

capital

hand Nov. 30, 1940.

12,631

„

1

decrease, amounting to 191,394,000 gallons

13,860

4,020

-

to

6,948

19,623

Maryland

Interior.

8,392,000 gallons compared with 8,064,000

(Thousands

286

Long
Island
:
Penn-Reading Seashore Lines—^
Pennsylvania
System
Reading Co

the

The chief increases occurred

PRODUCTION

118

>.

on

5

1,772

was

of

1941 compared with 204,540,000 gallons

1,873

288

463

«

30,886

2,890

1,828

Jersey

33,611

Department

913

251

4

919

2,583

Erie

444

35,774

Ohio

562

a

simple solution to the problem.

256,284,000 gallons

558

S.

Appalachian, and Texas Gulf Districts.

Allegheny District—
Akron, Canton & Youngstown

U.

gallons in October.

9,729
3,554

Total

of

average in November

929

5,819

consequences

gains tax is hampering the war
program, Mr. Schram noted, at

7,225

516

as

dustry to

515

4,396

of

unde,-

present

diversity

cars

total

7,201

.

question
many

serious

ments

208

6,448

♦Correct C. S. P. M. & O.
Chronicle"

43,638

10,623

915

5,580

& Pennsylvania
Valley

942

27

Wheeling Si Lake Erie

Cornwall—

396

247

2,007

economic

"The

1,644

378

2,625

4,600

'"

the
are

capital
gains
"Because the tax

1,044

88
4,219

Orleans

and

7,595

3,178

from

liable to the tax.

2,040

1,595

3,756

Wabash

New

1,160
2,359

1,730

117

Total

12,921

4,864

Rutland

of

168

2,235

Weatherford M. W. & N. W

78

12,069

Susquehanna & Western
Pittsburgh & Lake Erie
Pere
Marquette
Pittsburgh & Shawmut
Pittsburgh, Shawmut & North
Pittsburgh & West Virginia

Lake

203

2,330

875

1,299

5,902

low capital
This has resulted in

there

the

no

215

4,204

Lines

6,879

110

1,671

242

2,373

371

Southwestern

Falls

the

2,003

165

Wichita

248

when

effect, the tax imposes a pen¬
alty on risk money and thereby
renders risk money
impotent.

1,421

2,148

2,120

8,008

43,472

Buffalo Creek & Gauley
Cambria
&
Indiana—

1,911

1,625

2,443

Pacific

8,687

Lines

Louis

New

2,917

5,791

Central

St.

&

239

,

3,378

1,793

7,982

Si

10,462

140

3,031

1,939

96

Texas

8,816

123

3,270

__

Northern

7,849
2,489

Texas

5,438

that

ments, even though they retain

Pacific

44

322

N. Y.,

Total

619

2,235

&

1,941

1.206

Y., N. H. & Hartford
:
New York, Ontario & Western
N. Y., Chicago & St. Louis

Western

518

Francisco

41

13,091

-

Acme

Louis-San

1,957

2,858

4,617

N.

Union

1,220
8,657

■

7

the taking of gains, it like¬
wise operates as a deterrent to
the general flow of capital.
In

5,734

158

10,308

Pacific

Quanah
St.

18

5,847

8,531

301

14,096

Arkansas

1,296

2,052

Ligonier

20,229

452

14,495

a

to

0

204

Valley

13

324

Monongahela

R.R.

21,986

-

so

as

operates

326

0-

act

tax," he said.

116

,

District—

1,227

-

215

■>

Western

Montour

Central

22

26,295

L-—

Lines

&

Missouri

240

10,948

237

Central—

&

30

of

<

1

Midland

1,319

244

11,147

2,049

Lehigh & Hudson River
Lehigh Si New England
Lehigh Valley

&

451

115,830

Missouri

1941

12,904
Trunk

Baltimore

146

432

Madison—,

1,983

7,780
•

Ironton

Brie-

Bessemer

1,442

Pacific

&

7,615

5,029

Mackinac—.:

Toledo

York

910

631

enough

not

taxpayer's tak-

rates, producing by far
larger revenues, he said.

sirable

418

1,849

will

shown

revenue

1,560

417

16,169

Litchfield

Connections

1940

533

26

Delaware, Lackawanna

New

953

1,458

894

1,872

;

,

Arkansas

1,699

1,413'

■

Delaware & Hudson—.

Maine

934

1,750

845

Y', 1,021

^

Western—.

&

7,846

1,316

Indiana

Grand

907

1,792

22

(Pacific)

&

Louisiana

7,911

Central Vermont

&

:
-

Kansas, Oklahoma & Gulf
Kansas City Southern

2,170

Maine

Detroit Si

.1941

508

_

Bangor Si Aroostook

Detroit,

12

998

System

Missouri-Kansas-Texas

Ann Arbor

Detroit

14

low

rate

tax

"Aside

1,517

1,026

revenue

lower

2,812

755

the

the

had

the

2,718

1,407

4,027

_

Received from

Total Revenue

2,751

840

3,244

2,130

-

—

.

Union

Total Loads

Railroads

2,760

757

as
en¬

when the rate is

as

731

3,235

substantial

gains rise.

9,300

City

Pacific—

Burlington-Rock

(NUMBER OF CARS)—WEEK ENDED JANUARY 10

Central

772

9,759

778

,

International-Great
AND

•

tt

2,254
10,774

is

capital gains tax is to

Investors cannot switch

Gulf

Boston

2,656
2,893 ;

942

Southwestern

pared with the corresponding week last year.
REVENUE

ies

7,764

3,927

Total

freight carloadings

for the separate railroads and
systems for the week ended Jan. 10,
1942.
During this period 69 roads showed increases when com¬

9,059

11,225

Western

Denver

Pacific

Western

table

revenue

capital gains tax is high capital
gains largely disappear, where¬

107

15,644

2,841

Utah

following

such

as

Mr. Schram said recent stud*

6,691
2,370

618

Onion

♦Revised.

The

&

Pekin

Southern

99

10,852

Northern

Toledo,

Total

2,672

373

16,597

17,288

Lake

Western
&

7,736

2,690

484

,

2,802

Terminal—

Nevada

1940

592,925

17,204

3,170

405

765

Grande

Salt

Worth

1941

737,172

_

Rio

&

Illinois

of 1940.

to

remarks

ing of gains."

1,547
47,778

18,060

3,245

Missouri-Illinois

614,171

;,

*676,534

1,413,706

_

20,421
*

;

_.

Southern

&

&

Denver

all

his

deterrent to the

District—

Garfield

&

Colorado

increases compared with the correspond¬

12

Tribune"

"The inescapable conclu¬
that the best way to

from the

68

5,329

1,661
5,004

1,622

Chicago & Eastern Illinois

Fort

1941

reported

Western

is

produce

640

...

57

85,465

Top. & Santa Fe System—

Denver

All

Jan.

of

"Herald

reported

1,681

1,728

62

S.

5,644-'' i
9,752

Paul & S.
Pacific

■

429
'

9,659

589

258

Chicago, Burlington & Quincy
Chicago & Illinois Midland
Chicago, Rock Island & Pacific

corresponding week in 1941.

advices
York

he

lations for

8,475

399

_____

Alton——

the

inverse

rate,"

tirely fortuitous
and
is
not
susceptible to any fixed calcu¬
budget purposes," he

159

387

South

Total

cars

tax

does arise from the tax

j

8,429

9,157

___

&

■

3,399

?.

11,270

Des

Northern

Atch.

above

New

the

.

2,472

Iron

Ft.

Central

increase of 666

an

in

is

17,303

5

15,022

Western

Duluth, South
Elgin, Joliet &

Bingham

increase of 486

the cost of
"The volume

'

18,780

the
rev¬

pay

revenue

"Moreover,

Chicago
Chicago
Chicago,
Chicago,

Spokane,

the

tax

proportion

cars

below

the

help to

of

national

program.

5,320

/

,

lowering

follows:

^

14,197 cars,

preceding week, and

794

and

war

6.471

382

116

the

1,104
.

that

increase

would

enues

367

3,035

7,166

19,904

—

contended
tax

'

265

9,821

22,760

Total

„

380

?:

;

10,230

Southbound—

374

3,238
1,088

2,434
v.".

453

407

Line—

on Jan. 12 at a dinner in
Chicago attended by members of
the Chicago Association of Stock
Exchange
Firms.
Mr.
Schram

78

1,087

Spokane International

decrease of 1,206

a

;

.

loading amounted to

,

decrease

a

corresponding week in 1941.

above the

cars

revenue

change,

1,140

>

11,818

than

dent of the New York Stock Ex¬

611

1,040

*

corresponding week in 1941.
Ore

rather

'

Central.

Minn., St.

loading totaled 35,031 cars, an increase of 2,371
above the preceding week, but a decrease of
2,693 cars below

the

measure

1,476

184

System

Northern

Forest products
cars

1,579

1,448

1,292

System

Fred.

Minneapolis

the preceding week, and

cars above

3,539

1,550

Ohio

Winstonr-Salem

Lake

above the corresponding week in 1941.

cars

6,192

3,189

356

i

Nashville—*

Air

Tennessee

Green

cars,

6,498

3,405

433

202

Northern—

Richmond

Great

alone,

11,940

9,396

4,087

Southern

Seaboard

The capital gains tax was criti¬
cized
as
a
revenue
preventing

1,635

Macon, Dublin & Savannah
Mississippi Central
Nashville, Chattanooga & St.
Norfolk

1,052

By Scbram

1,517

967

385

Duluth,

above the correspond¬

cars

&

Assailed

140

1,966

4,066
Carolina

Florida.

&

'199'

11,709"

—

Central

Gupitai Gabs Tax

1941

10,990

_____

Midland

Louisville

In the Western

increase of 2,707 cars above the

an

Line

Western

Mobile

Illinois

1

*

Southern

&

Georgia
Gulf,

alone, grain and grain products loading for the week of

January 10 totaled 21,857 cars,

Z

Florida East Coast

,

crease

Ala

Greenville

&

Southern

.

of

Georgia—.:
&

Gainsville

5,747

cars

1942

269

R.R.

Clinchfield—

Loading of revenue freight for the week of Jan. 10, increased
60,638 cars or 9% above the preceding week.
of

1940

768

Charleston

10.3%.

or

1941

710

P.—W.

Atlanta, Birmingham & Coast

68,931

was

1942

751

Central

increase above

or

Connections

321

W.

&

Jan.

The

Received from

Atl.

Atlantic

cars

District—

Total Revenue

Alabama, Tennessee & Northern—_

Loading of revenue freight for the week ended Jan. 10, totaled
737,172 cars, the Association of American Railroads announced on
15.

'

Freight Loaded

Ended Jan. 10 Amounted To 737,172 Gars

25,537

Thursday, January 22, 1942

33,870

348,620

367,443

1,260

23,097

1,092

6,804

6,345

65,538
110,129 109,905 1,070,152

58,350

84

1,531

126

26,589
1,773

844,898

10,416

67,796

6,468

78,780

25,090

23,040

103,352

126

2,928

158,197

84

3,427

2,717

Curb Seat Retirement
Arrangements have been made

Chesapeake Si
Norfolk

Si

District-

Ohio

23,603

21,709

23,048

8,910

21,592

9,062

20,179

18,982

5,306

5,683

Total




3,149

3,300

32,308

29,282

546

503

672

272

8,784

8,609

92,119

84,990

4,116

1,984

5,040

2,078

48,025

50,101

531,085

.538,146 §8,506

by the New York Curb Exchange
to purchase and Tetire the 29th

1,768

61,068

1,766

seat

249,984 2,441,124 2,129,904 86,982 104,412
8,064
7,309
6,358
__4._

86,688

117,852

2,064

2,806

California

Western

Virginian

Arkansas—

Rocky Mountain
Pocahontas

5,041

4,449

4,341

2,012

1,265

50.236

46,337

46.371

16,228

16,010

Total

251,748

Daily average

8,392

Total (thousands
of

barrels)

Daily average

5,952

58,122

50,712

200

192

174

166

2,071

2,486

under the plan adopted; by
membership last July.
Pres¬

ent market for the Curb

1

5,994

the

Exchange

memberships is $1,000, bid by the

Exchange, offered at $2,500.

345

FINANCIAL CHRONICLE

THE COMMERCIAL &

Number 4036,

Volume. 155

Shares

Shares

Statistics

Weekly Goal find Coke Production
The Bituminous Coal

Division, U. S. Department

the total production of

soft coal in the
This is in

Gimbel

6-11) amounted to 10,143,000 tons.
The U. S. Bureau of Mines reported that production of Penn¬
sylvania anthacite for the week ended Jan. 10 was estimated at
827,000 tons, an increase of 99,000 tons (about 14%) over the pre¬
ceding week.
Output in the corresponding week of 1941 amounted
to 1,056,000 tons.
\"
V
.
v ESTIMATED UNITED STATES PRODUCTION OF SOFT COAL, IN NET TONS, WITH

Brothers,

Glidden

Co.

4'/27c

(The),

common

convertible

2,631

—

8,111
5,947
300
7,165

■

——

convertible

Hat Corp.

Finance

Howe Sound

Interlake

Week Ended

Corp.,

*_

Iron Corp., common

Interstate

Department Stores,

Inc.,

25,008

gan

preferred

4,506

•

.

.

23,814

(22)

103,120

4,503

converted to equivalent
of coal.
with

(12)

2,114

(131

8,000'

'

.'

"

,

j

fuel.

shipped by truck from

ESTIMATED WEEKLY

15,127
16,542
authorized opera¬

'•

•

-

20,680

15,414

.

and dredge coal, and coal

b Excludes colliery
7

20,371

19,357

average

Includes washery

a

STATES

Sheaffer

Squibb

weekly estimates are based on railroad carloadings and river shipment
and are subject to revision on receipt of monthly tonnage reports frem district and
State sources or of final annual returns from the operators.)
, .
Jan
.-v
—r-r—t—
Week Ended
(The current

■>v

Dec.

Jan. 3,
■>
''

V:

State——

,*

y

■' vv,v.:.'■.

\

Alabama

•:

176

ldinois

1,183

1,070

436

.

80
161
•>i'

l

449

,—

355

93

243

1

226

(/)

(/)

o

1,158

1.322

2,111

400

1,036 V
454

434

:

188

*

'.

(/)

127

276
109

54

157

•

1

Carolina

Indiana

■V

294

:

y,-.

(/)

2

.4

el923

1929

1940

1941

3

237

91;.

Oklahoma-—

Colorado——

ueorgia and North

■ ■

v.

321;

.

Arkansas and

4

Jan. 5,

Jan. 6.

Jan. 4,

27,

1941

1942

■

Alaska—--——

363

659

88

140

.

46

60

77

158

155

194

639

479

619

784

812

258

•\V*. 210

192

268

380

240

32

Iowa—_——
Kansas and

33

29

34

54

22,901

7

9

15

14

32

»

178

Kentucky—Eastern
Western——*—

Co.

(Frank
<W.

A.)

5cumul. preferred

of Delaware,

G.)

L

Co.,

common

Pen Co.,

common

-

—
—

(E. R.)

& Sons, common
Sterling Products (Inc.), capital
Swift & Co., capital

(16)

Tide

Associated

Transamerica Corp.,

Tri-Continental

Merchants &

United

common

Co.,

$6

—

common

capital

Corp.,

United

Co.,

Oil

*

.140.000

3,580

—

45,367

11,306
953,000

II,323

—

510,453

cum. cv.

prior preferred
preferred i_„——;
United States Rubber Co., common
'——
Vick Chemical Co., capital —;
*
Webster Eisenlohr, Inc., 7% cumul. preferred —
White (S. S.) Dental Mfg. Co., The, capital
White Sewing Machine Corp., prior preferred

pf,

ing the Board "for the purpose of

(is)
55,448

secution of war

-

(19)

15.709
5,031
23,016
17,800

"

Inc., 8%

-

5,771

'

190

159

607

that Mr. Nelson shall:

"

26.316

—

(20)

production program.

1,122

1,092
1,000

—

(9)

—

;

plans, procedures and

7,729" shares delivered to officers and employees of a
hold balance.
(2) 1,900 shares acquired; 2,900 shares

(1)

production, including
purchasing, contracting, specifi¬
cations
and construction;
and

ment and

„

—

—

tioning, plant expansion and

such directives in respect there¬
to

'

'• .X-

•

General Corp,, $2 div, ser. pref.
—
American General Corp., common
—
American Writing Paper Corp., common
Art Metal Works, Inc., common
—L—Y————
Blue Ridge Corp., $3 conv. pref.
—
Carman & Co., Inc., class A —
—

Changes In Holdings Of Reacquired Stock
y
Of N. Y. SM & Curb Listed Firms

i;

^
v

The

Stock Exchange reporting changes in
stock was made available on Jan. 16.

y

^

v

monthly compilation of companies listed on the New York

issued

their holdings of reacquired
Following is the tabulation

by the Stock Exchange:

:Y;;''YY;v Y

Shares
Shares
Previously Per Latest
K
Company
'■
: V Reported
Report
Allied Stores Corp., common
—
20,000
12,271 (1)
5%
preferred
—:
1,103
103 (2)
American Chicle Co., common
——"
3,175
3,575
American-Hawaiian Steamship Co., common—64.200
66.200
vY'

'V''

Y
Y'~Y"Y
and Class of Stock—
, ...

:

;y

':"V;:=yv~r-y

.

.

-

Leather Co., 6% preferred—1,700
American Ice Co., 6% preferred
„—
— ,
20,663
Armour & Co.
(Del.), 7% preferred ——
*
682
Associates Investment Co., common
4,500

4,700
23,965
1,154
12,029

American Hide &

V

.

5%

»

Atlas
67c

Corp.,

—T—

Co., common .—y—_.r_

Barndall Oil Co., common
Belding

Heminway. Co.,

'

"

Borden Co.,

The,

Brewing Corp. Of.

Case

"*■

(J. I.)

Nehi

9,108
26,900

Paramount Motors Corp., common
Selected Industries, Inc., $5.50 div,„

common

45,832

48,432

Oil Corp., 5V2% conv. preferred —^—_—
Sunray Oil Corp., common
————
United Chemicals. Inc..- $3 part, preferred —
United Cigar-Whelan Stores Corp., common
Wilson-Jones Co., common ;—
—
*—

•

—

—^

,

————

.

5,000 (4)
2,987

-

Coca-Cola
'

Co.

(The),

57c'

preferred

%

-

Firestone Tire &
,

•-

-

-

6^

.fium'^ative

Rubber Co. (The)
A.n^eterred.

Florsheira Shoe Co

.(The),-class A




,

;

y.f 8.391' '
1,771
361,455
1.400

—

Cooperweld Steel Co., cumul. conv. preferred, 5%. series-*Coty ,Inc„ common —:—:
—*—
—*
Crucible Steel Co.-of America. 57o convertible preferred—
Cuban-American Sugar Co. (The), 5-Va.% conv, preferredDsvega Stores Corp., common
1
Detroit Edison Co. (The), common ——
E. I. du Pont de Nemours & Co., common ___—.———
Evans Products Co., oomraon——,—
—
Federated Department Stores, Inc., 4'/4 % conv. preferred-

'

"

—

common—
—t

-

,

1.810
75.286 '

Patterson and Under-Secretary

51.847

•

the Navy Forrestal.

127.981
'

3,710

The letters read:

2.520

2 690

102,800

We have just one

None

7,621

■

422

12.101.

4,300

922
12.114

10.948

5.000
12,888
"

515 -,,

8.650
11,482
35,651 (8)
(9)
11,200
31"4,'4

i6,266
1,115

make

to

materials
and

to lick Hitler and the Japs,

7,500

War
Production Program Sy Executive Order

16 formally established by Execu¬
tive Order the War Production Board and delegated to Donald M.
Nelson fuU charge of the war procurement and production program.
The President had announced on Jan. 13 that Mr. Nelson would be
Chairman of the War Production Board, which is granted the powers
pvprcised bv the Supply, Priorities and Allocations Board.
The
SPAB. which had been set up last<&
In his statement on Jan. 13 the
Aug. 28, is abolished and its mem¬
President said, that Mr. Nelson,
bership transferred to the new
in

job to do-

war

t

President Roosevelt on Jan.

board.
,

enougft

to do it in the shortest possible
time.

-^

.

'

76 021

4.250

Donald AS. Nelson Made Responsible For

(6)
450 7,521
1,646
(7)

56,929

.

tention in identical letters to Mr.

Knudsen, Under-Secretary of War
of

Y 1.747

712

Japs

it in the shortest pos¬

do

'

addition to being chairman of

that

-

Y>V-;'Y

have to

to do this

do

changes
in order

job will be made. The

evolve

fective

-

be made

present organization
will

;

organizational

Any

2 000
63.529

8.350
12.001
' 16,044
^
49
10.800
312.974
14,066

.

1,800

'

Consolidated Oil Corp., common.

'

to

sible time." He announced this in¬
;

7.900

7,550

106.581

—

and

552

1.993

'

300 (5)

■

common

5%, cumulative conv. preferredElectric Corp, 6$v'-preferred A——'
B ■—
——
—

& Aikman-Corp.,

-Columbia Gas &

7,051

391

,

6,500

1,814

——y—,—___

Co., oommon

,

—

Sunray

21,254 (3)

capital-i—_f—y—T.—21.954
America; capital
25.000

5,976

set-up in

order "to lick Hitler and the

26,835

21,263

:Y

told the

14

Jan.

on

changes in the defense

5,831
14,155

26.235

i

prior stock

'<■

5,578

,

other

>V"'Y''-AY^/Y.

Nelson

Mr.

such

the President may di-

as

Army, Navy and OPM that he is
prepared to make any drastic

4.450

j

252,638
11,912

Y

46.873

13,855

York Merchandise Co.,

rect..

Y Y 38.963

1,300

—

duties

1.286

786

36,488

—

procurement and produc¬

and'. perform

6.314

45,873

Inc.. common ——-i——^
Niagara Share Corp. of Maryland, B common
Oilstocks, Ltd., capital —
—
——
New

7.786

1,305

first preferred

Corp.,

,

i!:

war

tion;

565

10,539

—————

$2 conv. preferred

Corp.,

.■

12.816

Brvant, Inc., 7%

Midland Oil

1%

'Collins
*

-

common

preferred
—
Merritt-Chapman & Scott Corp., 6Va%A preferred

preferred
—
————-—
——
1,865
2,645
Century Ribbon Mills, Inc., 7% preferred
165 - r ;
30
Chicago"'Yellow Cab Co;; Inc., capital y_——„5,722

—

Corp.,

of

None
1

9,613
•

11,373
13,700

.

Brown Shoe,Co., common...——
6,000
Burlington Mills Corp., common——ii—i——4)9
Carriers & General Corp., common ——i——;
1,800

.

,

Knott

7,950

12,316

1,815

———

6,310

——-

Equity Corp., $3 conv. preferred
—_y__
Fanny Farmer Candv Stores, Inc., common — *————
Gellman Manufacturing Co., common —_
Interstate Hosiery Mills, Inc., capital
——
Klein
(D. Emil)
Co., Inc., common
Kleinert (I. B.) Rubber Co., common —.———
——
Lane

to the President on the progress

-

,Y

7,586

Co.,

—„179,234
7,412

common

preferred

Mfg.

3.551

3,512

Stores, Inc.,

Dennison

(e) Report from time to time

1.650

10,200

1,218
562; Y

common
——
debenture stock ———
Dennison Manufacturing Co., A common
Detroit Gasket & Mfg. Co., 6% preferred c—~
Electrographic Corp., common
—L—

Dejay

performance of its responsibil¬
ities and duties, and direct such
changes in its organization as
he may deem necessary.

Y.Y '''Y. 5,944 Y

Kv 6,875

Supervise the Office of
Management in the

(d)

8,200

-

Executive
1941.

Production

•

1,250

cumulated preferred

Atlas Powder

,

common.:—'————L*——,i.
Cooper-Bessemer Corp., $3 prior pref.
Crown
Central Petroleum Corp., common U__—i—
Corp.,.

Charis

■

.6,500

Supply

Order No. 8875 of Aug. 28,

353,913

343,526

;:v> 5,444

the

Allocations Board by

8,206

7r031

Y

functions
vested
Priorities and
the

exercise the powers

and
in

'

Perform

(c)

Report

Reported

Name—

American

he may deem necessary or

as

appropriate.

*

;. «<

issue

and

thereof;

financing

_

1.000 tons.

requisi¬
the

conversion,

including

,

.

than

depart¬

ments, establishments and agen¬
cies in respect to war procure¬

.

Less

Federal

several

the

of

—

*

policies,
methods

the

Determine

(b)

NOTES

subsidiary which continues
Michigan—.
to
exchanged for debentures
82
V 68
72
60
69
!.
90
Montana
of Geo. B. Peck, Inc.
(3) 1,600 shares acquired; 487 shares sold, and 1,813 shares
73
49
25
22
23
28
New Mexico
issued for business and assets of Farallone Packing Co.
(4) Decrease results from one:-,Y'Y /50
71
/54
V.
66
65
73
North and South Dakotafor-five split-down of shares.
(5) Six hundred shares acquired; 2,100 shares, retired
814
360
422
433
473
512
Ohio
'6) Thirty-two thousand shares acquired and transferred to acquire capital stock of
3,402
2,483
1,982
2,297
2,190
2,403
Pennsylvania bituminous
Pacific
Coast
Coca-Cola Bottling
Co.
"(7)
Forty-eight thousand, three - hundred
133
100
123
111
88
129
Tennessee—
shares acquired; 409,755 shares retired.
(8) Transactions since June 30, 1941. (9) Re
26
23
15'
7
8
8
Texas
tired.
(10)
1,300 shares purchased;
873 shares acquired as result of request for
109
133
76
87
80
100
Utah—
tenders.
(11)
7,135
shares acquired;
11,931 shares canceled.
(12) 7,125 shares
211
215
289
281
230
346
Virginia
acquired as result of request for tenders.
(13) 10,414 shares retired; 1,900 shares
74
49
39
32
39
28
Washington-.
(14)
1,500
shares acquired;
6,048 shares distributed to employees as
1,134 acquired.
1,761
1,700
1,562
1,264
1,840
West Virginia—a8outhern
additional compensation.
(15) 1,100 shares acquired and distributed to certain officers
762
666
512
615.
607
708
bNorthernand employees as additional compensation.
(16) 430 shares acquired and canceled.
186
141
112
134
131
152
Wyomlng
(17)
Initial report.
During December company received 52,910 shares from windine
n
i
n
cOther Western States
up of The Squibb Plan, Inc.
Company also disposed of 7,935 shares during the month
(18)
2,460 shares acquired and
retired.
(19) 1,090 shares acquired and retired
11,850
10,030
8,932
8,809
8,160
9,800
Total bituminous coal
(20) Five shares acquired and retired.
(21) Received as result of partial liquidatinp
1,968
817
1,138
1,131
840
728
((Pennsylvania anthracitedividend of Eastern Michigan Transportation Corp.
(22) Results from conversion of
old 7% preferred stock,
(23) 2,670 shares acquired since March, 1941 . (24) Previous
Total, all coal
C 10,528
9,000
9,626
10,063
11,168
13,818 total incorrect. 2,962 shares acquired and 2,479. shares retired since Oct. 1, 1941.
a Includes operations on the N.
& W.; C. & O.; Virginian; K. & M.; B. C. & G.; ano
The New York Curb Exchange* issued on Janv,16:the following
aa
H oivthe B. & O. in Kanawha, Mason, and Clay Counties.
bRest of State, including the
list of issuers of fully listed securities which have reported; changes
i,5<.tj. v ,panhandle District and Grant, Mineral, and Tucker Counties, c Includes Arizona, Cali'. .*•!
yy fornia, Idaho, Nevada, and Oregon, d Data for Pennsylvania anthracite from published in their holdings of reacquired stock:
Shares.
Shares
records of the Bureau of Mines.
e.Average weekly rate for entire month.
/Alaska
Previously ■Per Latest
Georgia, North Carolina, and Soutn Dakota included with "other Western States."
Maryland

.

(a) Exercise general direction
over the war procurement and

18,800

——

—

—„

The order stipulated

production."

16,100
V'

most effective pro¬
procurement and

assuring the

"

„_—-

United States Leather Co., The,

the

Order,

President said that he was creat¬

9.424

56,159

^

>

:YV'Y.''^^

Executive

his

In

'

1,047,300

9,436

for com.

■

Co.,

aid program.

.78,192

—

——

—

Inc., v t. c.

Gypsum Co., common
—
United States Hoffman Machinery Corp., 5(4%
Pictures

(17)

9,832

44,167

States

Universal

lace, as Chairman of the

—

——————

preferred

Manufacturers,

i—

Wal¬
Board of
Economic Warfare; and Harry L.
Hopkins, Special Assistant to the
President supervising the defense
Vice-President

Henderson;

3,6oi
15,300

—

-'—1-———^

Pacific Coal & Oil

Water

; y

9,830
78,239
510,259

——

Co., The, capital

Texas

(24)

535

45,504

—

Texas

483

15,091

——_—_—

Y

Secretary of the Navy
Knox; Federal Loan Administra¬
tor Jones; OPM Director General
Knudsen; OPM Associate Director
Hillman;
Price
Administrator

4,858

-

Secretary

are:

Stimson;

42,859

3,101
9,400
138,100
4,161

—

capital

Nelson

3,100

-

the War
Mr.
of War

besides

Board

Production

122,900

15,018

—.—

——

Oil

resigned

The other members of

(i5)
3,103

55

6

47

——-

Missouri—_—

Seaboard

Shattuck

PRODUCTION OF COAL, BY

(In Thousands of Net Tons)

„

Common

Schenley Distillers Corp.,

,

(14)

I,305

v

Nel-:

from Sears, Roe¬
buck on Jan. 16, ending an asso¬
ciation that dated back to 1912.
son

68,201

.

tions.

became

the OPM and the SPAB. Mr.

15,025
'

—

Daily

he

Later

(ID

—

Treasury
Department.
connected with

the

for

98,607

-

—

from his post as
Vice-President of

Sears, Roebuck & Co., Chicago, to
become Director of Procurement

(22)

23,814

——

—

in June, 1940, when he took a

Executive

(22,

59,535

*

with
be¬

leace of absence

—

7%

Manage¬

association

His

the national defense program

500

International Mining Corp., common

'

;

been

Production

of

;

ment.

25,600

4,408
17,535
Jan. 10, '42
Jan. 3, '42 Jan. 11, '41 Jan. 12, '29 Jones & Laughlin Steel Corp., common *;
Bituminous coal a—
" • *x'?.
57c preferred A
7,014
10,925,000
9.800,000
10,143,000 11,884,000
Total, including mine fuel
—
5 7o preferred B
*
7,014
1,821,000
1,960,000
1,691,000
1,981,000
Daily average
~——
Kayser (Julius) & Co., common
—
102,020
Crude petroleum b—
Lehman Corp.
(The), common
83,507
6,468,000 < 5,389,000
4,155,000
Coal equivalent of weekly output—6,774,000
Libbey-Owens-Ford Glass Co., common
4,796
and
statistical convenience the
Macy (R. H.) & Co., Inc., capital
*
1__
5,785
a Includes
for purposes of historical comparison ......
Madison Square Garden Corp, capital
:
5,400
production of lignite,
b Total barrels produced during the week
Maytag Co. (The), $3 cumulative preferred
—
10,614
coal assuming 6,000,000 B.t.u. per barrel of oil and 13,100 B.t.u. per pound
Mohawk Carpet Mills, Inc., capital
6,500 s.
Note that most of the supply of petroleum products, is not directly competitive
National -Cylinder Gas Co., common 1'
5,853
coal ("Minerals Yearbook," 1939, page 702).
National Department Stores Corp., 6% preferred—
—
66,541
; •
'
ESTIMATED PRODUCTION OF PENNSYLVANIA ANTHRACITE .v \
Newport Industries, Inc., capital v—•
V
Norfolk & Western Ry, Co., adjust. 4% preferred—.
2,318
^ '
AND BEEHIVE COKE (IN NET TONS)
—Calendar year to date—
Pacific Finance Corp. of California, common
12,060
Week-Ended
Jan. 10,
Jan. 11,
Jan. 12, Petroleum Corp. of America, capital
t107,300
Jan, 11,
Jan. 10,
Jan. 3,
Penn. anthracite—
1942
1941
1929
1941
Plymouth Oil Co., common
J__.
"
100
1942
1942
a Total,
including
939,000
1,420,000
2,602,000 Radio Corp. of America, preferred B
i
Y
.728,000
1,056,000
colliery fuel
827,000
892,000
1,349,000
2,415,000 Real Silk Hosiery Mills, Inc., 77c cumul. preferred
3,892
692,000
1,003,000
b Comml.
production- 786,000
Reliable Stores Corp., common
—;
39,516
Beehive Coke—
.
„„„
Republic Steel Corp., 6% cumul, conv. preferred
1,226
U. S. total
135,500
142,600
107,900
206,800
166,400
198,500 Safeway Stores, Inc., 5% cumul. preferred i
509
:

of

fice

50

995

V

appointment, Mr.
Executive Di¬
the
SPAB
and also
Director
of the Of¬

Priorities

6,982

production

and

this

to

had

rector
(21)

4,532

645
4,187
21,300
23,951

,

—

Co., common

Prior

Nelson

400

„

,

preferred

common

over

procurement

8,447

46,334

$5 cumulative preferred

A.),

of America, 6y3%

Household

will be final."

cies.

11,865

4,529

preferred

(The M.

Co.

Hanna

of

(10)

y

———

5 \'% %

(9)

2,173
8,211

4,066

4,631

——

preferred

vision

2,266

—_

and have general super- ^
all production agen¬
His decision as to questions

program
(23;

3,513
196,221

—

cumulative preferred—

$6

.

"will be charged with
of the production

direction

the

Report
1,352

843

———

the board,

Per Latest

167,221

—_—,

—

—

Goodyear Tire & Rubber Co. (The), $5 cumul. conv. pref.
Greyhound Corp., The, common

PETROLEUM

PRODUCTION OF CRUDE

ON

DATA

1

4,495

—

—

—

preferred..

Motors Corp., common

F

sponding week of 1941 (Jna.

•

common

.

Qeneral Realty & Utilities Corp, $6 preferred
General Telephone Corp., common
Gillette Safety Razor Co., $5 conv. preferred-

comparison with an average output of approximately 10,840,000 tons
in the non-holiday Weeks of December.
Production in the corre¬

COMPARABLE

Co.,

convertible

57c

General

10,925,000 net tons.

10 is esimated at

ended Jan.

Week

Trailer

Freuhauf

of the Interior,

latest report stated that

v<. in its

Company and Class of Stock—

Previously
Reported

into

possible

it.

and

must

the

ef¬

most

instrument

to

*

Every

one

with

connected

production and procurement, in
all agencies
must

carry

of the government,
on

with the utmost

deyotion and energy.

,

.

.

;t

•

V

-

,

THE COMMERCIAL & FINANCIAL CHRONICLE

Fertilizer Assn.. Price Index Still
The
The

weekly

National

seventh
Jan.

In

121.5

119.1

at

Fertilizer

consecutive

19.

from

wholesale

the

Prices

advanced

according

to

compiled

index
last

The

the

for

week

that

Widespread

were

throughout

the

list,

commodity

In

the 11 principal group indexes advancing, none
4 remaining unchanged.
In the food group price
registered by 15 items and declines by only 5; the
net result was a moderate upturn in the food group average.
Farm
product prices were generally higher.
Cotton and cotton goods
again rose in price causing another advance in the textile index.
An advance in the price of oak flooring was responsible for a frac¬

the

Aug.

tional

July

of

7

declining, and
increases

in

the

A moder¬
Advances, al¬
though small, were registered also by the indexes representing the
prices of fertilizer materials and miscellaneous commodities. -

following table

figures for- two

years;

building material group average.

recorded

was

by the mixed fertilizer index.

1941—
Dec.

31——,—

Nov.

12
3

declined; in the preceding week there were 45 advances
declines; in the second preceding week there were 29 ad¬
and

vances

and

19

the

31

declines.

12

/

.

,

„>

1940—

374,500,000

because

Nov.

370,500,000

Sept. ' 30YY__iYAug. - 31—;

353,900.000

July;

329,900,000

June'

299,000,000
295,000,000

May ^ 31—. Y—— 234,200,000
—238,600,000
Apr.. ,30_____

Sept.

June

30-ZZIIIIIII

May

31

Apr.

—,—

—

______

30—„________

-——i,

28—inn in ii

Jan.

31

._____■
...——

Feb.

1940

Dec,,

"

f

Y

more

COMMODITY

WHOLESALE

be

226,400,000

s

,

219,400,000

___

[1935-1939

;

Y—

30————

209,900,000

We

Latest

%
Each

Week

Week

Ago

Jan. 17,

GROUP

Jan. 10,

Dec. 13,

Jan. 18,

Total Index

1942

25.3

Oils
Oil

Cottonseed

23.0

Farm

Products

Grains

Y

___

10.8

Miscellaneous

8.2

7.1

Metals

6.1

Building

1.3

Chem.cals

.3

Fertilizer

.3

Farm

96.3

119.1

117.0

122.5

118.4

97.8

113.0

111.9

101.5

126.9

126.9

110.4

147.7

140.8

112.9

i

87.6

Materials

20

103.2
H7.8

114.9

99.7

Indexes

Groups

122.0

base

1926-28

on

Combined--

121.5

119.1

Jan.

were:

17,

1942,

1942,

10,

Jan.

Jan.

94.6;

to a compilation made by Merrill Lynch, Pierce.
Beane, 27 chain store companies, including two mail
order companies, reported an increase of 21.2% in sales for Decem¬
ber, 1941; the same 27 companies reported an increase of 20.6%

92.06

97.47

110.70

113(70

107.62

92.06

97.47

110.70

113.70

92.06

97.31

as

whole.

a

■•%'/I1*

Y.Y, ; V

Continuing the experience of recent
and

auto

one

supply

the two mail order
established new annual

years,

chain

The

Co. and Sears

combined

Roebuck

&

sales

Co.

in

1941

the

two

whole.

demand

______

—

116.41

113.89

116.41

113.89

107.62

91.9T

97.31

110.52

pation

of

such

114.08

107.62

92.06

97.31

110.70

106.92.^116.41

114.08

107.62

92.06

106.92

/116.41

113.89

107.62

92.06

106.92
106.92
106.92

for

gain of 31.7%
companies in

a

these

refrigerators, radios and tires, in antici¬
Groups handling "soft" lines

as

final

monthf of

27.4%.

Y(y""

1941, as sales of four grocery

Similarly,

sales

of

Y/I ,V

•

.

chains

apparel

six

and two shoe chains recorded

-y.Vy V

-Month of December1941

Grocery

11

:

106.92

.116.61

114.08

V 116.61

114.08

an

increase

116.61

114.08..

107.62

106.56

116.02

113.70

115.82

113.70
113.50

106.92

116.61

117.53

106.04

115.82

113,50

108.52

118.60

1116.02.

115.89

105.52., .116.22

-12 Months End, Dec. 31-

%.

106.56

113.89>

110.70
110.52

Jan.

115.65

101.80

115.43

MOODY'S

110.34

113.31

110.88

113.89

107.09 Y 90.63
J 92.50

95.92

110.34
112.56

89.23

95.62

109.42

109.97

113.70

'

''-1 *!'

(Based

Individual

on

96.85
90.06

106.74

Y VJ ft

AVERAGESt

-

'

;

t,

•

■

:

110.34

Zv

I'

Y'. Y."Y;/

Corpo-

3.34 Y

YYY

20

Jan.

2.82

"3.34

19

-3.34 Y

.

"'

"YY~—__

3J1

;3.ia

?-

3.92

4.28

!

4.27

*

4.27 i"

3.92

3.30 /
3.30

9

Y————

8

6

.3.34

I

3.92; ;

3.14

2.9'

3.92

3.13

2.97

3.13

2.97

/

3.92

3.13
3.13

J 3.13

bushel, farm basis, for de¬
signated varieties of U. S. No;

2\ Yellow, with location and
differentials, and Gov¬

-«2.9(

2.95

3.30

2.95

2.85
2.86

3.39

-•

•-

*

2.86

2.98

2.98

■;/

3.34

2.82

2.95

-

2.86

3.05

v

3.25

2.72

2.85

2.75

2.96

2.86 '

1941

4.37

3.33

3.12

2.9f

3.14

2.91

4.01

3.15

2.99

4.01

Y

3.15

3.12
3.20

3.89

3.03

2.8-

4.38

3.95

3.17

2.97

4.88

4.41

3.35

3.15

1,074,301,264

945,334,838

13.f

27.7

427,239,204

24.1

Jan.

530,280,238

Drug

chain——

9,816 675

8.447,221

16.2

85,742,305

76,601,176

13.4

Shoe

chains—

6,243 341

4 754,073

31.3

49,813,341

40 598 813

22.7

1

Auto

supply——

8,122,000

6,710,000

21.0

71,043,000

53,934,000

31.7

$366.400 005

$304,141,982

20.5

$2,665,561,471

$2,272,754,237

17.3

orders—— 204.338.884

166,724,950

22.6

1,622,322,155

1,282,929,226

26.5

$470,866,932

21.2

$4,287,883,626 $3,555,683,463

20,

•

.

3.36

1941

a

*

These prices

3.36

ter

being

the

lished

in the

25

'

'he

of

Oct.

bond

list

of

complete

issue

I 3.08 i,..

,

of

2,

■

.'\YY\
'
used... in computing

mo-kef

bonds

1941, page

409.

,

;'Y,

•

■

v

■

Bank
week

debits

ended

reported

as

Jan.

14,

banks

by

in

leading centers

aggregated $10,302,000,000.

Total

for

debits

ing the 13 weeks ended Jan. 14 amounted to $150,485,000,000,
above the total reported for the
banks

in

New

York

City there

with the corresponding period

ing centers there

corresponding period

was

a

an

these

."

\Y

indexes

was

year

BY

(In

FEDERAL

millions

10%

3,985

-

i.

Richmond
Atlanta

:

__

,

13 Weeks ended

Jan. 15,

Jan. 14,

1941

1942

524
524

8.678

3,587

—

Jan. 15,
1941
7,491-

59,869

52.698

486

8.217

6 628

736

638

11,053

8.746

418

377

Minneapolis

the

6,031

4,783

view of

Wickard

5.022

3 955

22 628

18 219

293

4 952

3.869

will

time needs."

158

2.853

2 200

339

282

4 690

3.70.5

233

4.164

3,137

822

12,327

9,715

10.302

9.111

150.485

125.147

3 626

3 276

54.663

48.365

5.735

5040

82.756

66.403

942

Francisco

795

13,066

10,380

on

best

New
140

133

274

reporting

York

Other

leading

Other

♦Included in

centers.

Citv*

the

centers*—

centers

national

series




covering 141

effort.

-

our

.

centers, available beginning with

1919.

the

serve

nation's

people

own

for

their

war

the

To

tion

production

crucial

American

American

looks

for

in

season

the his¬

agriculture.

farmers,

enough

the

na¬

produc¬

tion-this year to feed and clothe

the

exact size

allies

our

a

Ibut already we
be large,

of

Some

of

these

believe

farmers

can

but

cotton,

war

do

it

and

the

de¬

goals

for

space

and

crop

as

a

necessary

chicken
to

into
>

increasing their

extent

an

wheat

poultry feed.

are

turn

numbers

that

the

it

to

will be

additional

supplies into larger quan¬
tities of meat,
lard and eggs
was

thought oossible four

goals call for
and

time

tobacco,

and

,000 000

we

shortages
of
farm labor, machinerv, and pro¬
duction suoplms.
For wheat,,

spite

to

months ago when the firrt goals
were
announced.
The revised

goals will be
reach

aid

especially

feed

than

and I fear they will be
we realize at this

difficult to

to

areas.

storage

wheat

possible
-

-

time.

very

release

1942

and

such

the needs

from now,
know they will

com¬

wish

allotments

be

Granary

hog

tore-

year

the

Farmers

larger than
;

most

of

see

This will

livestock

supplies of food
and fiber for their people and

of

the

up to their usual
in order to have more

Normal
-

indispensable

one can

mar¬

live¬
stock production, a program will
be announced shortly provid¬
ing for the conversion of Ever-^

To American farm¬

..fighting forces. No

their acreage

further

the United Nations look for

ers.

The Secretary went

The coming

tory

time task.

war

to say:

is
Total,

war

"call for
the
greatest production in the history
of American agriculture; and for
putting every acre of land, every
hour of labor, and every bit of
farm
machinery, fertilizer, and
other supplies to the use which

318

893

_

To
'

policies

most$

commodities

<

1942

who

area

helpful in the dairy

.

stated,

1,394

299

.

new

in

corn

ments.

the goals announced

time he announced

goals, revised in
Pearl Harbor," Secretary

new

207

—

City

called -for in

same

no

this year.

corn

" feed may do so without incur¬
ring reduction in other pay¬

;

.

355

Dallas
Ban

of

the

to

which

stocks

output

and

by planting

loans, purchases, and sales of Government-held
should stimulate the production of maximum sup¬

respect

364

—.—

Louis

Kansas

with

At

1941.

on

producers

/. acreage

Agriculture Claude; R. YWickard announced
or
goals for farm : production in 1942 substantially

record

the
of

1,545

—

Chicago
St.

the fall

plies

566

Philadelphia
Cleveland

in

of

revised

larger than

dollars)

1942

______

.

16

"The

595

/YYY

York

Secretary
Jan.

lard, tallow

and there will be

Corn

.

Secretary of Agriculture Sails For Largest
United States Farm Production In History

needed in the

DISTRICTS

Jan. 14,

Federal Reserve District—

compared

' "

;

Week Ended

New

At

ago, and at the other report¬

RESERVE
of

20%

ton and $70

Virginias. Ef¬

corn

keting quotas
mercial

dur¬

or

a year ago.

increase of 13%

increase of 25%.

an

SUMMARY

was

the

a

supply of ani¬
goals and corn
allotments are raised

feeds,

acreage

' '■ •
pub¬

w

"

1

To increase the

mal

20.6

Up 13% From Last Year

No.

in packing plants.

exceed

lank Debits

$78

production *of

years)

picture

latest

t The

;

true

T

3.70

computed from

are

in

maturing

coupon,

be

ton for Class A

grease
'2.88

3.64

1940

peanuts
S.

;

■

-

2 Years ago /

20,

of
U.

forts will be made to step up the

average yields on the basis of one "typical" bond (3%^,
and do not purport to show either "the average level or tfv
iveiage movement of actual price quotations.
They merely serve to illustrate In a more com
prehensive way the relative levels and the relative
movement of yield averages, the )at

63,257,140

1
2

1 Year ago
Jan.

will

ners

3.08

4.24

for

ton

2.96

4.03

purchases

a

receiving agency, with location
and
grade
differentials.
The
purchase price for No. 1 Run^

2.99

3.91

4.47

$82

White Spanish Type for oil, de¬
livered
at the
approved local

2.97

3.13

3.99

3.19

;

at

CLOSED

4.27

;;

2.9(

3.39

.

ernment

2.96

3.13

grade

2 9(

3.13

3.97

Y

4.37

>

3.29

'.3 J 3

3.95

4.34

EXCHANGE

3.42

3.39-

4.31

/ 4.32

3.32

•

;^Y_Y-\

1941

-

e

3.93

3.93
3.94

4.30
-

3.30

2.97

J;
■"

4.30

3-31

2.97

Y

3.93

4.29

.

3.33

Y

3.37

.

_____________

'^Y-YY-Y,/

4.29

3.30

3.29

2.82

on

lo¬

a

2.97

2.82

loan

a

basis with

"

,2.97

3.92

3.35

:■

1942 ""IIIIII.IIII'

Low

:■
v

3.30

STOCK

High

4.27

2.95

including

bushel farm

and grade
differentials;
purchases of soybeans at $1.60

2.97

4.28

2.95

,

2

2.95

-2.82 '•

3.34'/.

t,

To

acres.

cation

2.97
2.97

3.13,

3.30

,3.34

;

peanuts, 5.000,000

/ and
ployed,

'

3.30

,

v

2.82

-

/I// 5^jYYiY__Y':' .'""''3.36
://;.

2.96

2.96

2.82

3.34

~._YY____Y

7 YY_'—--..
I '1

2.83

is raised' to 9,000,000
flaxseed, 4,500,1300 acres;

this production, price
loan supports will be em¬

lntiu

J3.13

v.

4.27

/ ■3.30

2.83

3.34

;

YZYYY—

.10

-

*

3.34

13
12

Y;i

;V

3.91

■4.27

2.95

number of steps
The
goal for

flaxseed averaging at least $2.10

P. V

"4.27

2.95

1

vegetables. \

Department's

per

Ft.

3.30

2.96

2.83
2.83

pack of

R

3.30

*

.

than

more

; encourage

-

Y.

-

■.

3.30

f

2.96

/

2.83

3.34

3.34'

»'•

:_

Y

Baa

■'

"

15
14

:'v

„

2.96
"•

2.83

3.34'.

•Y';Y 16 YY-~AY-.

A

2.96

2.83

'

\T7

Aa

Aaa

in¬

Corporate by Groups

Corporate by Ratings

-

//

rate

for.

an

soybeans

1942-

Daily

a

announced.

/acres;

Prices)

Closing

and

Agriculture

/ are

"

#

90.43

Y 83.79

100.81

of

in the

cases

fruits

for

To increase the production of

111.62

-

called

are

made
1941

fats and oils

116.4.

YIELD

rice
is

announcement stated:

113.31

V 97.78

15.1

80 712,846

$570,738,889

The

CLOSED
92.06 'v'y 97.47

109.60

111.62

BOND

of

over

canned

and

20, 1940—

Y/

bushels

18,000,000

v

113.31

95.92

for

comparable

113.31

96.23

160.615.267

chains-

Companies

96.54

17.5

1941

are

edible beans and dried
An' additional 5,000,000

crease

113.70

91.34

106.58

dry

Provision

113.89

Inc.

Apparel

27

v

113,89

110.70
110.88

1940

6

M-il

110.70

96.85

$769,(>45,019

184,783.427

Chains

97.16
97.00

..

118.00

113.70

$904,194,664

Inc.

the

wheat

prices

at

113.89

91.05

v

112.00 •-106.04

117.88

20, 1941—

we

corn.

peas.
<

113.89

110.70

-% 90.63

107.80

120.05

110.70
110.70

91.62

EXCHANGE

114.08

97.31

97.16

91.62

107.09

in

113.70

91.85

1107.27

115.82

J
.

107.44

106.39,:
106.04

Low 1942 Y/sYY-JaY;

/ZyY/yY

Y''

for
also

space

crop,

The goals call for an increase

113.70

110.70

97.16

v

91.77 J

107.62

106.74

110.70

97.31

91.91

91.77

.

107.80

106.92

97.311

.

.

27.4

1940

chains-

2

107.62

113.70

$65,112,454

chains._$82.965.057

5 & 10c

25

107.62

J 107.62

114,08

110.70

2 Years ago

High

4

113.89
114.08

116.61.

1 Year ago

Jan.

3

gain of 27.7%

a

31.3%.

Co. scored

increases

&

of that

excess

restrictions.

the

in

increased

showed
of

116.41
116.61

,

118.10

1941—

with

113.70

107.62

117.85

1941

smaller in degree than those for the year
months, volume had been swollen by unusual

lines

production

held the lead
chains

in

storage

wheat

feeding

113.70

116.41

117.95

1942—Z

were

In earlier

for

Sales

years.

December, however,

Montgomery Ward

26.5%

was

1940, while Western Auto. Supply

between

for

total

Indut

106.92

•

records.

P. u.

106.92

Average

organizations

R

106.92

117.82

1942

&

1941

as a

Aa

117.61

Low

According

in

Government-owned

Baa

107.62

113.89

STOCK

Fenner

way.

expand feed sup¬
certain
areas
and
to

R.

A

113.89

116.41

117.91

nilII

3

Low

for

Aaa

116.61

106.92

118.09

5

High

sales

*

106.92

118.00

-

18.

December Chain Store Sales at $570,738,889

under

to

making arrangements to release

117.81

—

o

High

for

rate

117.94

By

1941, 78.8.

:

well

Corporate by Groups

Corporate by Ratings •

118.10

101.1

95.0;

order

new

117.60

104.0

100.7

expansion in
poultry pro¬

and

now

provide

PRICESf

Average -Yields)

on

117.53

106.0

109.8

103.4

In

plies

117.59

IIIIII

9

112.7

arc-

117.61

10

103.9

117.0

the

dairy,

duction

y

117.86

14

131.2

103.4

averages
•

117.60

III1II

16

112.0

114.0

Corpo¬

Bonds

______

Y/ '15 YYY'

i1

All

100.0

Y

Averages

Jan.

gv/ 19;______

131.7

104.0

BOND

yield

y'y'v'-'

meat,

Avqe

Govt.

120.1

117.4

;

V. s.

Daily

12

104.0

(Based

%

131.8

Machinery

bond
Y

to

continue

v

-

Z 1942— Y/Y,

120.1

Drugs

f ertilizers

.3

96.3

163.1

104.0

_____

Materials
and

74.7

124.4

127.2

Commodities

156.0

174.0

122.6

Textiles

156.4

129.1

121.5

1.

Fuels

73.8

179.4

_________

Livestock
17.3

129.0

130.4

—

YYY---

:

129.5

156.1

——

;

Cotton

92.5

130.8

Y-

_____

116.6

MOODY'S

1941

118.7

149.0

and

Fats

1941

119.7

____

1942

113.0

Foods

and
y

Ago

Group

Bears to the

Moody's computed bond prices
given in the following tables: Y

Year

Preceeding Month

cut off.

are

increasing the goals
by 5,000,000 acres in
have plenty of grain

are

corn

-.to

Moody's Bond Prises And Bond Yield Averages

100]

=

-

too.
drastically,
though importations from,

the Far East

Y*

AssociationY///-Y.Y:-

by The National Fertilizer

Compiled

*

reduced

even

for

^ZyI/.--''.

INDEX

PRICE

v

.

bearing crops puch as pea¬
and soybeans so that our
supplies of oils and fats may not'

order
WEEKLY

.

goals' place
particular
emphasis on the production of'
nuts

YV-';'' V.-;

'

long

a

The

217,900,000

—

—

Y,

,

1939—

is

war

become progress¬
difficult to get pro¬

oil

/

YYYYY-i 233,100,000

29
31-

Dec.

31-,

Y

A—YYYY' 244,700,000

30______—

-

Jan,

the

will

duction.

31——. Y-———Y 232,400,000
:.29-—-Y—s-i.. YYYYY/ 224,100,000

Mar;:

be

must

we

—

___.

274,600,000
263,300,000
240,700,000
232,400,000

—

Mar.

ively

YYYYY/ 231,800,000

30

-aiY^'Y-tuY Y-YY-Y* 252,400.000
/ 250,700,000

Oct.

377,700.000

word,

a

if

it

one,

387,100 000

interests would

In

produce to the limit iii 1942 the

;

——

precious labor
the other

For

things where shortages may oc-:
cur under war time
conditions;

JvvY-'j

——

—

nation's

served.

compilation of the monthly

a

waste

supplies.

commodities, if farmers are able
to exceed the goals and process¬
ors
can
handle
the
products,,

Y/\;Y;Y' >• Y, /'"■' Z/Y. ■I"'-

$

._Y-_

29

Oct.

:

During the week 47 price series included in the index advanced
and

give

we

/"■ '•' ' YY

/
"J

.

Feb.

and

Jan.

on

were

increase

ate rise

announced

of

total

a

would

so

Federal Reserve Bank of New York

reports received by

show

week

rises

should not be exceeded./To do

;

the bank from commercial paper dealers
$374,500,000 of open market paper outstanding
on
Dec. 31, 1941.
This amount represents a decrease of 3.3%
from Nov. 29, 1941, when $387,100,000 was outstanding, and an in¬
crease of 72%
over Dec. 31, 1940, when there was $217,900,000 out¬
standing.
■•//.'■■'.''Y
:::X //
'/'././I;/
'/•!■

issued

announcement

an

by

the

a

resulting in

Association

time,

price

Thursday, January 22, 1942

y-Y Commercial

„

ended Jan. 17, 1942 this index rose to 122.0
preceding week.
A month ago the index stood
year ago at 101.1% of the 1935-1939 average as 100.

in

and

commodity

Rising

i\

*

t

346

over

head

an

increase of 4.-

in

hogs marketed,
200,000,000
dozen
eess
the September 1942 goals.

The increased feed supplies also
v

will heln to attain th'«*

goals set

for meats and for milk market-

;

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4036

Volume 155

ing and production., The price
supporting program announced
last Fall for hogs, eggs, evaporated
milk,
dry
skim
milk,

.*

c

Retail Prices Advanced Further In December

continues,

this

Under

supported
at
85% of parity.

-

'Because

wheat
at

.

showed the smallest monthly advance
The cost of living for wage earners and lower-salaried
clerical
to the Fairchild Publications Retail workers in the United States was 0.5%
higher in December than in
a gain of 0.7% during the month of
November, according to the Division of Industrial Economics of The
December. This follows a gain of 1.2% recorded for
November,T% Conference Board. This was a smaller increase than in the previous
for October and 2.5% for September. In August the gain was 3%. three
months, when living costs rose at an average rate of 1.3% per
The index at 108.3 (Jan. 3, 1931=100) is the highest since 1930. Prices month.
The cost of living in December was 8.7%
higher than in
show ah advance,of 15.3% above the corresponding period a year
ago, December, 1940.
and 21.8% above the period immediately preceding the outbreak of
The Board's index of the cost of
living in the United States

goals.

All restrictions

have

and

goal

120,000
vide
in

supplies,
remain
September

the

been

has

for

rice

will

substantial

a

1939.

The

raised

been

(1923=100)

'■

:

is from an announcement issued

following

Jan.

on

14

by

ber

Fairchild Publications:

pro¬

Each

major subdivisions recorded

a

and infants' wear the smallest advance above

year ago

Piece

and home furnishings
comparison with August 1939.

a

The

revised

With the

changed

crops

of

crease

than

more

the

1941

pack

and tomatoes.

peas

tions

canned

The indica¬

production of
vegetables for fresh use in 1942
will show

increase

an

production.

\

■i

over

.v.:

either

remained

1941

.

in

and

The

fruit is

canned

to be 4,000,000 cases
in 1941.
Dried fruit
is

expected

be

to

;

expected

larger than in 1941.

1933

.

Composite
Piece

higher than those
lished in September.

fered

•

Men's

^

staples

on

of

•

Home

will

be

■"I-

difficult

M

the

all-out

an

of

Women's

recently

farm

plan

completed,

to

equal

.

*

House

&

the

goals

•

106.9

108.5

110.2

109.5

78.9

-

:

79.8

80.7

81.3

98.4

99.5

101.2

101.7

122.4

125.6

129.2

93.6

•

-

108.9

111.4

113.2

of

114.7

123.8

124.4

125.3

125.5

83.4

'

116.8

+

^•*73.3^:-

-59.2.,'

86.0

87.8

88.6
129.5

106.4."'-

J5.5,

^Jf83.6
^

76.5"

|

85.9

vX

v,

*

•

Apparel

.v

88.9<»

V

124.6

;; 127.4

09.1

100.1

102.1

138.1/.' *138.1

*136.4

95.7

97.7

-

-108.8

•«

:

121.41

-92.9

.<.69.2",>

Shoes

.

;

93.8

.

h

;;

103.2
«

89.6

-

Shirts?.&

t

76.3

94.7

incljr' ,Overalls_I_l£'^

Wearf^;:.

Socks

i

'\i

,

-.y

',91.8

Underwear
Shoes

*•'

106.2

I

93.1

89.4

89.4

99.2

'99.7

100.0

102.6

103.8

106.3

101.0

107.3

107.3

.•

;

V———

69,4

93.9

•

U.S.

:

Year
Year
Year

>;

■.

of

food

101.9

93.4

92.9

107.1

of

35

prices

kilowatt

y

feet.of manufactured

+ 0.5-

107.6

\

for

hours

+ 0.9

—0.5

,

Dec.

of

15, 1941 and Nov.
electricity, 1,000 cubic

gas.

-■A

.•

;■

STATISTICS

REPORTED

BY

MEMBERS

OF

THE

;INSTITUTE

COPPER

""

•

■

•;

tRefined
Deliveries to

Duty

Production.

v

•Crude

»

;

Refined

Customers

§ Domestic

/

Stocks

Stock Increases (+ )

End of

■"

Export

or Decreases

Period

Blister

(—)

Refined

231,415
iu

731,629

748,660

54,447

101,068

—17,031

__i._

982,045

'' 964,176

803,095

62;798

259,351

+ 17,869

638,076

481,803

125,869

289,755

818,289

814,407

134,152

159,485

644,869

,

836,074
992,293:

764,560

—70,347
+98,283

6,793

+30,404

+ 17,785

—130,270

+

1,033,710

1,001,886

—41,417

16,713

1,015,494

1,065,667

1,513,292

307

75,564

—50,173

-67,208

83,280

93,840

119,736

22

116,854

—10,560

-25,918

112,808

.11

-19,165

::

79,240

93,654

48,537

*,

142,772

97,689

r-14,414

85,701 .*•

95,322

134,333

6

89,873

\—9,621

88,042

89,687

123,580

49

98,789

V—1,645

+ 8916

90,342

89,390

144,293

93,076

+ 952

—5,713

82,558

88,560

1941

Mar.,

101.5

123.1

124.7

V; 125.5

126.6

July,

138.3

138.6

: 140.4

140.7

Aug.,
Sept.,

May,

82,099

1941

84,695

1941_____

81,839

1941

i

1941

Apr.,

;; + 99.6

102.5

102.8

+■;;

(In Tons of 2,000 Pounds)

1941

98.6

.

1

•'

0

■

Summary Of Copper Statistics

COPPER

1941=

Jan.,

103.2

-

OF

;'

1936*1;

Year

100.3

101.2

cubic

+0.1
+0.1

,

85.9

v

30

index

prices

+ 0.6
71

92.4
v

85.9

__I.

retail

+0.6

•

71.9
90.2

-

1935__^

98:8

100.7

H'.'

100

Board

2,000

or

Latest

Year

127.8

'•

79.9;;

Coverings

<1

upon

gas,

Feb.j3' 1941_iX__
106.3

dollar

■■

Year

%

95.2

'

?;■:' 80.9

Furniture
Floor

74.3

,

natural

Year
,

96.4

101.7

',:;98.3;.-i-+

-103.8 /

74.0;

;

.

89.1

89.0

-

105.5

102.8

91.4

V

i

items

Conference

tBased

■■■/;

90.4

96.0

94.8 *

v

iy?

•

92.1

r

;

.9^+."

83.4

___—i

1.100.3

86.0

.'

.69.7

—

94.3

-

:

i ;?74?3-

\

The

all

of

value

on

Free Copper

—

r>;-69.6M •w 92 0:-

Neckwear^T^—_i_

Hats & Caps_iv———

Infants''

87.5

':+64.9

*

•

98.8

89.8

7

■■

I
of

average

SUMMARY

*135.9

•

89.6,

87.3

90.3
92.5

J

electricity-

+ .04
+ 0.6

The Copper Institute on Jan. 12 released the
following statistics
pertaining to production, deliveries and stocks of duty-free copper:

"Vm-

'

5

+0.4

7

79.6

72.3 '

and

1941.

feet

92.2
89.5

■,

87.8

Purchasing
14,

;:

80.1

I

(—)

to Dec., 1941,

89.9

12

Dec.

from Nov., 1941

1941

7'

92.6

20

or

Nov.,

1941

33

;

Pet. of Inc. (+)

1923==100

Dec.,

Budget

Sundries

132.0

K

announced in Sep+77 7+;y.;>7 :

tGas

*Based

88.5

66

Shoes

tember. 77% '

The

-

Cost of Living

Family

light

Weighted

103.4

y

Clothing

the

103.7

; ■

Dresses__^_^.f

Brassieres_lv_'_^_

Underwear-

production called for in most of

•

&

Hosiery

y-

farmers

103.2

k

canvass

exceed

or

102.1

Indexes of the

in

Coal

+.77 -

:-7'2.9

?

Furs

have already indicated that they

i

107.7

101.2

69.1

Relative

Importance

Women's

98.1

106.9

Apparel

Aprons

.

Comfortables—i_

&

Hosiery

attainment^; but: in

nation-wide

T 97.5

7 68.6.. v

7L..7

65.0

Blankets

;:f-\'
program

95.7

♦

•i 69.2

____

Wash Goods

Sheets

the job ahead for
agriculture* Secretary

is"

This

•

• f

"

96.5

105.7

-

.

Housing
Clothing

105.0

95.5

97.6;

.

Woolens

Men's

J

-

purchasing power of the 1923 dollar was 107.1 in Decem¬
compared with 107.6 in November and 116.4 in December,

as

following table shows The Conference Board index of the
cost of living, by mam
components, for November and December,
1941, with percentage changes:

108.3

103.7

electricity

The

~

limitation

•Wickard commented

107.5

101.6

-

gas and

■;S.,

i94o.

Domestic

up

American

1942

104.1

92.5

-

70;2

L77_+:_;:—£.7

% Underwear;1—plantings of sugar beets and

Summing

•;

.76.4

Goods

Corsets

sugarcane in 1942.,

(

Jan. 2,

was

'

*Food,;
1,

1941

106.2

99.9

89.37.
v

71.8

Wear

Cotton

"
■

70.7

-

57.4

1 Vs ~,and

no

105.2 i
•

87.0

1943078

ber,

■

Dec.

1,

1941

«-

S'f;■

There

J—_7___:..i—£=■

Apparel

Furnishings

Piece

'

on

93.9

65.i
V

estab¬

7

>

69.4

—

7—7

Apparel

Infants'

expected

over.

Index

Goods

Women's

that
cotton
acreage will be about 1,000,000
V acres larger than was- antici¬
pated in September. To increase
>
production of long-stable cotton
special premiums will-be of'■;

Nov.

1,

1941

■>

9.7% higher than in Decem¬

was

December, 1940, although the cost of

0.6% less.

Fuel and

in

is

Oct.

1941 '

of

The

_

''

were

cost

December, 1940; housing

was

INDEX

,,,

are

It

PRICE

News Service

Jan. 2,

May 1,

Revised goals for all types of
tobacco
except
cigar wapper

.

S'-UVi Copyright 1941 Fairchild

tons

planted
acreage
over
1941 and a price supporting program is to be announced.

;

RETAIL

" JAN. 3, 1941=100

7

7;',

>4, The potato goal provides for
v;increases

PUBLICATIONS

FAIRCHILD

irv

larger than
production

100,000

THE

v

more than any of the other main
compo¬
living index from November to December;
0.9% higher, and they were 4.7% higher than in De¬

the

-ber than in

'
•

14 the Board

Food was 18.3% higher than
2.7% higher.
;
Fuel and light advanced 0.1 %, owing to a slight increase in
coal prices. The cost of fuel and
light was 4.4% greater in Decem-

un¬

over a year ago were re¬

aprons

Under date of Jan.

Food and housing advanced 0.4%.

dresses, corsets and brassieres, women's underwear, men's
shirts, men's shoes, infants' shoes. This is the first time that the
apparel items have begun to advance much more rapidly.
In
comparison with a year ago the greatest gains have been recorded
by cotton piece goods, sheets and pillow cases, women's hosiery,
aprons and housedresses, furs and furniture.
Retail prices are - still below replacement levels.
Therefore
further gains in quotations are to be expected, especially since
wholesale prices are also advancing, according to A. W.
Zelomek,
economist, under whose supervision the index is compiled.

that

are

index

1940.

Clothing advanced 0.6%, and
ber, 1940;
v

house

one-fifth

of

the

December,

cember, 1940.

fractional decline,

a

cotton piece goods, sheets and pillowcases,

'

over

in

The greatest gains

advanced.

or

corded by

•

included

commodities

the

all

-

goal for
is expected to result in a pack 45%
above the 1936-40 average, and
a program has
already been an{■ nounced for obtaining an inacreage

canning vegetable

.

exception of furs, which showed

of

They

,

year ago.

_

than in 1941.

more

,

in

said:

nents

showed the greated gains in

goods

93.4 in December, as compared with 92.9 in Novem¬

was

85.9

Sundries advanced

the

above 1941 acreage and for dry
edible peas
the goal is 73%

and

further

the

of

one

gain during
month, with infants' wear showing the smallest gain. Piece
goods and women's apparel recorded the largest advances above a

increase

production in 1942.

The goal for dry beans is 13%
V

according

months,

The index showed

removed;

This

acres.

rice

on

several

hostilities in

of

acreage

of

acreage

the

in

Price Index.

ample

rye

level

effect.

minimum

a

of

and

the

in

prices are

program

Living Rose 0.5% In December
According To Industrial Conference Boerd

Retail prices in December

•

broilers)

Dost of

According To Fairchild Publications Index

cheese, and chickens (excluding

347

—i

1941

June,

1941

_____

—7,816

115,097

42

98,164

—6,002

+ 5,088

86,879

143,089

33

.74,384

—4,780

-23,780

85,426

117,486

71,930

—731

—2,454

81,553

121,021

63,670

+ 286

—8,260

:

-

?
*64.6
*65.6
*65.7
1941
144
of Agricul- Musical Instruments
61.3
53.7
86,019t
86,617
121,313
—598t
Oct;,
67,260
+ 3,590
y
50.6194U
84,7181
84,799
123,168
—81t
72,352
+ 5,092
Nov.,
*89.2
*89.7
84.2
ture, through the management Luggage
76.0
*89.7,
-.60.1+
1941
86,961
89,940
137,368
75,564
+ 3,212
Dec.,
—2,979
of
its programs,
Electrical
Household
*91.1
*90.4
89.0
*91.6
and \ through
72.5
Appliances
i-?-179.7 ;;;
.j *Mine or smelter production or shipments, and custom intake including scrap.
■*; cooperation ; with
105.6
105.1
105.4
the pother China
.104:1
;
94.9
tAt refineries, on consignment and in exchange warehouses, but not including con¬
{- agencies
*The Federal tax of 10% at retail is excluded in the
of Government whose
sumers' stocks at their plants or warehouses.
computation of the fur index.
§Beginning March, 1941, includes deliveries of duty paid foreign copper for domestic
*; work touches the f armers'. prob- The excise taxes on luggage, radios,. and electrical appliances are levied on the
manufacturers.;
'"•'V-.-;
7*
consumption.
"
■;
7
77 777Tems of labor, supply, and price,
fCorrected.
'
v'v'
Note—Composite Index is a weighted aggregate. Major group indexes are arithmetic
:
will
do
its
utmost *'to
bring averages of
subgroups.
7 i*
'■
farmers all possible aid in getting, the job done..Adequate
farm production is vital to the
nation's existence, and the task
:
of achieving it will command
Sales of the leading "5 & 10" chains rose during the holiday
During the month ended Dec. 31, .1941, authorizations were is¬
v
the
energy
and
devotion *; of sued to receivers for
payments of dividends to the creditors of six season by approximately the normal seasonal amount. As measured
every farm family.
V_;v
,
insolvent national banks,
Comptroller of the * Currency Preston by the "Syndicate Store Merchandiser's" seasonally adjusted Sales
Delano announced on Jan. 14.Dividends' so authorized will effect
Index, issued Jan. 12, average daily volume per store in December
total distributions of
$835,501 to 35,782 claimants who have proved
NYSE Calls For Blood
at 129.-3% of the 1935^39 average was only slightly below November,
claims
aggregating $9,725,830,"or an average payment of 8.50%.
Donors For Red Cross The minimum and maximum
when the Index stood at 130.2. This compares with 130.9 in August,
percentages of dividends authorized

;•

Department

'

'

.

.

,

...

.

,

,

■

,

,

„

>

•

'

Bee.'5 & 10' Sales Show Normal Seasonal Gain

Insolvent Nalional Rank Dividends

.

;

were

firms

member

contributors

on

the

Exchange in

York. Stock
Blood

of

to

the

Service

Donor

volved

New

finding

Red
was

Cross

purged

Jan. 12 by Emil Schram, Presi¬
of the Exchange, and

dent

4.18%

and 55.0%, while the smallest and largest
authorizations during the month

payments in¬
were $48,401
and $327,100,.
respectively.
Of the six dividends authorized, Mr.
Delano said,.one was a regular dividend payment, and five were
final dividend payments.
Dividend payments so authorized during
the month ended Dec.
31v 1941, were as follows:

The cooneration of the members

and

James

in

dividend

■DIVIDEND

PAYMENTS

TO

CREDITORS

INSOLVENT

OF

"

F.

Burns,

Jr.,

Association

Firms.

In

Messrs.

President

of
a

Stock

letter

Schram

of

60

a

in

Burns

Red

Cross

state

;

j

cular

Broad

at

the

w'ndow,

Exchange's

1.1th

floor,

Street.




BANKS

1941

;

"

an

all-time peak for the Index and with

.

which totaled
1940.
an

12

leading 5c & 10c to $1.00 variety syndicates,

$186,400,936, showed

For the full year

improvement of 13.7%

Savings

Bank,

Proved

-—«•

12-19-41

D.

The

C._.

Will
of

First

:

___

County

National

Joliet,
Bank

of

First

Bank

First-

Beaver

National

134,700

,

72.71%

-

71.39%

327,100

of.

case

of

55.00%

2,302,433
2,107,400
594,800

'

.

other

banks

final

dividend.

95.33%

December

TO

$1.00

1941

SYNDICATE
•

1940

•Pet.

STORE
-

-

Chg.

SALES

-12 Months

—_

1941

1940

Pet.

Chg.

$54,571,108

+ 14.5

$377,130,933

$335,460,287

+ 12.4

Kresge_.

29,533,700

26,3*13,493

+ 12.0

171,038,571

158,162,394

+ 11.3

Grant

23.531.577

20.030,462

+ 17.4

128,241,292

111.051,059

+ 15.4

17,376.051

15,732,229

+ 10.4

101,389,664

88,299,960

+ 14.8

Newberry___
C. Murphy_^.__

11,595.806

9.961,723

+ 16.4

64.201,624

55,878.977

+ 14.9

10.898,006

9.041,996

+ 20.5

63,514,748

53,365.58V

+ 19.0

Stores—

9,398.144

8.027,770

+ 17.1

53,012,971

46.207.993

+ 14.7

9,174,856

7,971,910

+ 15.1

52,817,083

47,105.091

+ 12.1

5.089 546

4,442,958

+ 14.6

27,577,281

23,877.576

+ 15.5

4,770,116

3,648,929

+ 30.7

26.468.794

22,492,307

+ 17.7

1,617.509

1,301,857

+ 24.2

7,877,797

6.270.253

+ 25.6

917,623

819,699

+ 11.9

5,316,158

4,738,243

+ 12.2

12 Synd...$186,400,936

$161,914,124

+15.1 $1,083,636,916

$952,909,721

+ 13.7

T.
H.

J.

J.

Kress

McCrory
L.

Green_

McLellan

Rose's

M.

48.401

over

$62,498,002

Neisner

12-26-41
In

.

of

Falls, Pa.__:

•Regular dividend.

W.

H.

12-3-41
Bank

$940,600

2,872,500

-

Anadarko, Okla.
T>w»

.

Woolworth_

W.

S.

154,500

12-17-41

National

36.68%

10c

1941

G.

12-31-41

National

36:64%

?

&

December

S. S.

"

Ypsilanti, Mich.
*The

,

$50,700

120,100

12-15-411:

The

t

to Date

Be

F.

ton,

j:

Claims

Authorized

gain of 15.1%

the year 1940.

over

DECEMBER,

Dividends

Authorized

of Bank—..

.

a

sales amounted to $1,083,638,916, representing

•

Amount

7

115.3

1940.

Actual sales of

Percentage

by Dividend

Washington, D. C._i
Savings Bank Washing-

cir¬

20

31,

Authorized

Dat,?

Park

Donor registration blanks may be

obtained

Name and Location

North." Capital

health. Conies;
Blood

NATIONAL

DEC.

ofFunds.

It is said that

leaflet and

ENDED

Distribution

Bank

average

MONTH

represented

in December of

;.yTotal

donations will be welcomed by the
Red Cross from those between 21
and

THE

members

that, with the country at war, the
need
for blood donations is al¬
most without limit.

AUTHORIZED DURING

the

Exchange

to

and

of

which

H.

Stores—
Bros

Stores.,
Fishman

908,097

Total,

FINANCIAL CHRONICLE

THE COMMERCIAL &

348

:

Jan

'Aug

94.3%

-97.67#

Nov

—96.3%
4_—
ll.„— -95.67#

Nov

28

Jly

-I_i.t96.07e

1421Apr 28„

6——-97.2%'

Jan

98.3%

Apr
Apr

1941—

Steel Production Decline Probable Due To

Aug

J3—
98.57#
Jan 20-1^^96.57#

ftiay

5—

,.96.87#

'Jan* 27—Ju_—_97:l %•

May

96.97#

May

1219-

99.27#

Feb

Scrap Shortage-Orders

99.9 7e

Sep

97.17#

May

26—

98.6 7o

Sep

,

2
8

3

Feb

10—

Thursday, January 22, 1942

18—— —96.2%
Aug" '251__— u96.57<r

Aug
-

10

r_.

_96.67#

Nor 17—1_: -97.0 7#
.95.9 7#

24

If

.1—— .97.67#

Dec

8l—1— .97.5%.

Dec

-96.37#

Dec

15

Dec

22

people:with~increased in¬
comes
to spend, then we must

-93.47#

-96.17#
,96.17#
has been considered most vul¬ Feb 17
Dec 29..
99.2%
—94.6%
Jun
2
Sep 15
3
Jun
9.
98.67#
97.57#
Sep 22_.— —96.8% i
nerable from the viewpoint of supplies of raw materials like iron and Mar
1942—
..96.97#
Feb 24
96.37#
tun 16.
99.07#
Sep 29
steel scarp, states "The Iron Age" in its issue today (Jan. 22), adding:
Oct ' 6—u. -98.1%
Jan
2— .96.47#
—99.9#
Mar 10
Jun 23.
98.87#
"It is likely, however, that Japan's supply of scrap is far more ample
-98.4 % *
-97.87#
Jun
9
Oct 13
91.87#
Mar 17—
-99.4 %•
Jun 30
.97.77#
Oct
20
—97.8%.;. Jan 16-—
94.97#
Mar 24
799.87#
than is generally realized and is sufficient to permit high armament
jly
-99.9%
Oct 27
—95.27#
Mar 31
14—
99.27#
Jly
production by that country for many months to come. Japan's iron
-98.2%
Nov
3
21..
96.07#
Apr
7
99.37#
Jly
and steel scrap pile at the start of 1942 is estimated at approximately
"Steel" of Cleveland, in its summary of the iron and steel mar¬
10,000,000 tons. In the decade just ended Japan received about 11,7.
•
600,000 tons of scrap from the United States, , a period in which the kets on Jan. 19 stated: • ; V.'-.-.'i'iv.
Lines are being drawn tighter in the steel industry and in most
Japanese steel industry produced approximately 56,000,00(1 tons of
steel ingots and castings, and about 30,000,000 tons of pig iron. products high priorities are covering production almost to the exclu¬
Among the factors taken into account in a survey in the current issue sion of civilian supply. Fullest co-operation by the industry is aiding
of 'Iron Age' are Japan's imports of finished steel
products as government authorities charged with distribution and to the extent
well as scrap, its home-produced scrap and recovery of old metal that steel can be produced it is being supplied to fabricators of essen¬
tial-war materials.
from large-scale wrecking operations in China. .
•
■■
;V.
y. V; •'
.vV;Nj:
;
.
.
r
■
Pending whatever changes may result from formation of the
"Because of prospects that steel production may be lower in
War Production Board the steel industry is proceeding on the basis
1942 than last year due to the scrap shortage, the U. S. mills are
of OPM provisions, awaiting developments .which may be deemed
beginning to experiment with light, grades of scrap. Scrap collectors
in the east have been burning the tin off old cans in bonfires and expedient-to further the aims of maximum production. Meanwhile
sending the charred cans to the steel mills. One mill in the Pitts¬ every means possible to keep production close to capacity is being
burgh-Wheeling-Weirton district is experimenting with use of partly brought into play and in spite of obstacles output is maintained at
While lack of scrap continues to hamper production,,
detinned cans in steel melting. In an effort to salvage the tin from record levels.
old cans, two large detinning firms met recently with OPM repre¬ many open hearths being idle for that reason, labor interruptions
no longer cut into working time, which is a distinct gain, compared
sentatives at Washington.
*
\

find

Of all the nations at war, Japan

.

.

,

fix/price ceilings but

we

leave

-97-9%

._96.97#

—

As to price-fixing and ration¬
ing, Mr. Szymczak declared:

some

of distributing

way

fairly the limited supplies avail¬
able.
Prices can then no longer
act

the

as

mechan¬

allocating

We must take the ration¬

ism.

ing job over directly. 7'" ■
A recognized obstacle to the
price fixing procedure is the
great administrative, difficulty
of imposing, policing, and en¬
forcing price ceilings' on the
; thousands
of commodities
,

*

*

v

7'

bought and sokHn our markets,
Even with only a few prices '
fixed
it
is
very
difficult to
check

•:

on

- with
ceilings 4
all prices
the1

evasion;

many. or

be

would

task

<

dable

formi¬

most

a

No

one.

knows that

one

better than

you." Already OPA
hard-pressed J for competent
personnel — yet OPA today is
v.
only a shadow of what it will
have
to
be
if
price ceilings
with last'year.
•
spread everywhere.
• v\r;
:/yV; v, /;•, y-.y y'y- 7
y;y-7 v
,yy
Full force of the war effort is not yet apparent and the industry 7But
less
widely recognized
than' these administrative difexpects renewed demand along some lines as further plans are de¬
ficulties is this fact—price fixveloped. Among expected increases is further demand for building
material for additional munitions plants, army and navy bases and
ing inevitably calls for ration¬
additions to those already built.
Some of the latter already are
ing. If scarce goods are not to,
go to the man with the long
appearing.
7; V
Pig iron supply has been sufficient for prime needs but large
purse, then who will get them?
inventories existing when allocation started have been worked down
"First come, first serve" is not
an equitable or a feasible
in
the meantime and larger requirements are likely in
pro¬
coming

is

r

-

"The

drive is being conducted to

announcement that a

recent

system in which
without advance
foundries. Scrap
found to be upgraded will be recommended for reclassification, and
sellers and consujners will be liable to penalties.
misgrading of iron and steel scrap, under a
inspectors will appear at consumer plants
notice, is not unwelcome to many steel plants and
end

OPA

"This

the

week

which

Management,

Production

of

Office

is

likely to be abolished in Nelson's streamlining of the war production
machine, is working on a method to determine the demand for any
one of
100 basic materials according to the end use, and to what

i

•

.

,

.

.

months

material, this
the end use code, and

degree considering the stress of war consumption of
should be supplied. This method is called
it is said the 100 'broad bands of use' may be
use

.

.

to

Plates

supply those formerly covered
continue

in

heaviest

demand

by reserves.
ships,, tanks and

as

cedure.

war
requirements absorb an increasing quantity. In an effort to
considered as 'supply
supply all preferred users more strip mills are being pressed into
both for civilian and service for. plate production and many users, including builders of
military needs.
7
'. 1.
:
freight cars, are allowed to use only plates from strip mills. This
"Meanwhile the most drastic step yet taken to enforce the prior¬ releases the output of regular, plate mills for purposes where specifi¬
ity system of distribution of war materials and equipment is pro¬ cations are important. That plates will continue to be in heavy de¬
posed in the second war powers bill now being considered by the mand is indicated by an estimate of OPM that war needs this year
Senate Judiciary Committee. This bill contains provisions for giving will total over 10,000,000 tons, a figure in excess of total plate
the armed forces all-out power to requisition any machine deemed capacity.
•'■ v,'77:7 7,77'y v-77 y.y' 7 7 y;7i;j.
Production of finished steel is hampered by lack of semifinished
necessary for war work, regardless of how much that machine is
being used. Requisitioning powers under the Selective Service Act steel supply, especially to non-integrated mills.^ Allocation from in¬
are restricted to machines which are not in actual use and which are
tegrated mills to expedite production of needed steel has resulted in

bins'

from

which

materials

not considered necessary for the operation of a plant,

some

"Steel production this week is at 96.5% of capacity, a half point

week, according to 'The Iron Age' estimates.
The
recorded at Chicago, Cleveland and
in Southern Ohio.
The Pittsburgh rate is unchanged at 97%, and

advance

over

last

minor rise is due to small gains

St. Louis

Youngstown output is holding for another week at 95%.

points to 85%, the eastern area one point to 103%
and Eastern Pennsylvania a half point to 91%. While operations in
Southern Ohio rose nine points to 102%, Buffalo is unchanged at
dropped

seven

90%, Wheeling at 88%, Birmingham at 95.5% and Detroit at 94%.

"Steel orders booked so far in January are equaling, or in a few
exceeding, the volume of the corresponding period in December,
although orders had been expected to decline somewhat because of
the all-out war program. The OPM has allocated 375,000 tons of steel

|

cases

South American countries for the first

to

quq^tei^ of., J942,^|ogether
' tflll
"Approximately 1,750,000 tons of steel* will be needed for the

with

tungsten and nickel. /,■/;••

some

merchant

522

k

ships for which contracts totaling $948,000,000 were
Maritime Commission. The ships,

announced last week by the U. S.
made

as
part of the Victory Program, call for 8,000,000 gross tons
shipping in 1942 and 10,000,000 tons in 1943."
".

of

"IRON

THIS

Jan.

20,

One

week

One

month

One
A
"

2.30467c.

1942,

a

ago

ago

year

Lb.

t

1939

2.30467c.
2.30467c.
2.30467c.

ago

1938

represent

2.30467c.

23.25

Jun

21

19.61

Sep 12
Jly
f

23.25

Mar

9

20.25

Feb

24

18.73

Nov

18.84

Nov

17.83

Aug 11
May 14

17.90

May

16.90

-

1939

2.35367c.

Jan

2.26689c.

2.58414c.

Jan

3.27207c.

Oct

1937

2.58414c.

Mar

2.32263c.

Jan

13.56

Jan

3

Jan

13.56

Dec

f

15.90

Jan

14.79

Dec

1!

1930

18.21

Jan

15.90

Dee

If

1932

4

Mar

27

Dec

1931

1938

Jan

16.90
14.81

1933

2
Apr 16
May 16

.—

10

2.30467c,

1141
1940

Sep

.—2.30467c.

2.24107c.

Jan

Sep

1929

1936

—2.32263c.

Dee

28

1935

—2.07642c.

Oct

1

2.06492c.

Jan

__2.15367c.,

Apr 24

1.95757C.

Jan

Jan.

2

Oct

3

1.75836c.

May

1932 —1.89196c.

Jly

5

1.83901c.

Mar

29

—1.99629c.

Jan

13

1.86586c.

Dec

Jan

7

1.97319c.

Dec

2.26498C.

Oct

—2.317730.

1929

phia,

20,

month

One
One

year

Based

on

phia,
at

—

Jan

7

$19.17

Apr 1(

Dec

30

16.04

Apr

Oct

3

14.08

May If

16.00

Nor

22

11.00

Jun

Mar 30

12.92

Nov If

Dec 21

12.67

21.92

17.75

1936

and

Southern

$23.61

Mar 20

1940 —— 23.45

Dec 23

Dec

10

10.33

1934

13.00

Mar 13

1933

iron

Lot*
$23.45
Jan

'

13.42

12.25

1932

Valley

High

1941

$22.00
22.50

1937

for basie Iron at Valley furn¬
foundry iron at Chicago, Philadel¬

Buffalo,

,

Low

21.83

8.50

1935

Cincinnati

•

20.42

1938

averages

and

aces

l._:

ago

ago

—

y

yy

efforts to gather whatever can be tempted out by local committees
canvassing various cities. Currently snow and cold hamper collection
and

preparation and February may prove the low point.

automobiles in

of wreckers offers

hands

a

of

source

Scrap from

much

tonnage

section

of

railroad

elevated

in

Boston

has

been

ordered

and

will

provide about 10,000 tons.- Shortening of automobile assembly
has reduced scrap from this source which has not yet been replaced
by material from tanks and other war manufacture,

Cold bar drawers will be put

y

on

allocation Feb. 1

on

Jun

S

Apr 29

9.50

Sep

8

6.75

Jan

3

Jan 12

6.43

Jly

5

8.50

Dee 29

Aug

21

1931

11.33

Jan

6

2

1930

15.00

Feb

18

11.25

Dec

9

2

1929

1768

Jwr 29

14.08

Dec

3

potential

ahead

is

tremendous,"

The
that

American

telegraphic

Iron

reports

and

Jan

Steel

which

it

Institute

had

on

Jan.

received

19

announced

indicated

that

the

operating rate of steel companies having 91% of the steel capacity
of the industry will be 97.7% of capacity for the week
beginning
Jan. 19, compared with 97.8% one week ago, 93.4% one month ago
and 96.5% one year ago. This represents a decrease of 0.1
point or
0.1%

from

the

preceding week.

The operating rate for the week,

beginning Jan. 19, 1942 is equivalent to 1,614,200 tons of steel ingots
and

castings, compared to 1,615,800 tons

one

one

month ago, and

year

rates of steel

1,557,400 tons

one

week ago, 1,543,100 tons
ago.

operations since Jan. 6, 1941, follow:




Weekly indicated

make

To

direct

but

course, resort
both ways of

con¬

practic¬
must be'

approach
problem. y:7;y7.7
;

to

to the

the extent

that the

over¬

fiscal

approach is adopted,
the primary available steps are:
/

1.

Taxes; 2. Borrowing of cur¬
savings, and 3. Monetary

rent

controls.

be

can

increased
means

7 7'

:

There

taxes

necessary

doubt

no
are

one

that

of

the

to ward off in¬

flation. Almost all taxes bite di¬

rectly into current income, and
we must all be prepared for a
very

great

increase in the

tax

We must bear it cheer¬

burden.

fully—not only because we are

do

prepared to
also

we

"inflation

could

unnecessary,

ally, of
had

are

the

.

each

level

cedure

unchanged in absence of any alteration in
ceiling quotations, as follows: Finished steel, $56.73; semifinished
steel, $36; steelmaking pig iron, $23.05; steelmaking scrap, $19.17.

that

of

of goods available at
existing prices, there would be
.-.no
problem of general price'
rises/ Theoretically such a pro¬

greater than in 1940 and

because
we

are

shall lose

our

share,

must

we

more

and lose less

rationally -throughk a
prices.
r

but

realize

not taxed directly

rise

-

in

Saying that taxes must be dis¬
on the equitable basis of

tributed

ability to pay, Mr. Szymczak de¬
clare that the tax system
must
take
into
consideration
timing
and

nature

and

must also be

de¬

and an aggressive fiscal policy coupled with signed so as to prevent war pro¬
monetary controls.
Addressing the 31st annual convention of the fiteering. He continued: National Retail Dry Goods Asso-^
To the extent that the Gov¬
burden
of the
war
ernment, must borrow, the borciation in New York City, Mr.
effort as
equitably....as possible.
rowing must be planned so as
Szymczak stated-that "in. practice,
Inflation
interferes
to derive the maximum possible
I feel sure that we shall have to
with
all
mented

by rationing,

_

22.61

the

':

other
current in¬
some

to hold spending down to

year

in 1916. December ship¬
the Corporation for that
above those of November.
Automobile assemblies last week totaled 75,025 units, a gain of
16,035 over 58,990 made the previous week. This compares with
124,025 cars turned out in the corresponding week last year.

Warning

:y^'y;/'77y.-y
or

withdrawn

could be

come

all

M. S. Szymczak, member of the Board of Governors of the Federal
Reserve System, said on Jan. 14 that the two broad lines of attack
on
the problem are price ceilings on many or all goods, supple¬

haphazard

a

77}7: .7' :;77 7-y 7y 77':

•

Chicago 1 point to 101%. New England gained 8 points to 100%,
St. Louis 5 points to 81 and Detroit 4 points to 86. Unchanged rates
were maintained at Pittsburgh, 95; Eastern Pennsylvania,
89; Buffalo,
79^2; Birmingham, 90 and Cincinnati, 91%%;
Paralleling broken records in production of steel and iron in 1941,
shipments of finished steel by the United States Steel Corp. during

f
7

be the only al-

to
to

following to say:
If> by taxes
means, enough

the basis

Szymczak Galls For Price-Fixing, Rationing
Aggressive Fiscal Policy To Fight Inflation

must decide
get goods for which
many bidders. Ration¬

adoption of an aggressive fiscal
policy supplemented by monetary
controls—Mr. Szymczak had the

trols

Composite prices

wool suits, and
soar and prices

someone

appears

purchases for the first seven months of 1941, to be obtained
from their 1940 sources of supply.
'
7"
fV, Due entirely to lack of scrap, production last week receded
point to 8*3%. Youngstown made the greatest decline, 6 points, to
84%r Wheeling lost 1 point to 89%, Cleveland 2^k points to 90% and

net tons, 36%
19% above the previous all-time record
ments were the highest in the history of
month, totaling 1,846,036 tons, almost 14°f0

we

rubber

With regard to the other major
method of combating inflation-

of their

that year totaled 20,458,937

thing

many

.

is being concentrated on these in an effort to obtain the
available material while allowing retention of resale parts. Wrecking
a

will

to

are

scramble.

and pressure

of

is

ing

each

many

ternative

19.17

.

1940

—$23.61
23.61
23.45

:

who

there

.$19.11

ago

1939

$23.61 a Gross Ton

1942,

ago

;

fixed,

are

-

of

If incomes

so on.

that if

and Chicago.

—

in short supply for the latter;

cases

Scrap supply shows no tendency to increase in spite of various

have—how

tires, how
.

Gross Ton

High
1941

Fig Iron
Jan.
One week

a

ago

29

1931

$19.17

Baaed on No. 1 heavy melting steel scrap quo¬
tations to consumers at Pittsburgh, Philadel¬

9

May 28

year

1942,

Dec 17

Scrap

ago

month

One

2
1

1930 —2.25488C.

week

One

One

20,

18.21

May 14

Steel

8

1934

—1.95578c.

18.71

—

18

2.05200C,

1933

16

19.74

Low

High

$20.61

1934

strip. These products
the United States output.

of

19

1936

and

sheets

78%

Sep

__

1936

weighted Index based on steel bars, beams.
plates, wire, rails, black pipe, hot and

eold-roiled

-322.61

—

1937

tank
*

Lot*

High

'

Finished 8teel

V

PRICES

COMPOSITE

AGE"

7

-

much

shall

,

4

:

how

be directed

may

Government

The

have have to step in and tell us

other

do

a

He

great deal of both."
listed the three broad aims

of the

war

period

as

follows:
important

The first and most

is
of

to

maximum output
materials
and get it

get the

war

quickly.
The

second

is

to

avoid

un¬

disruption of econ¬
omic life, both now and in the
post-war period.
The' third
is to
spread the
necessary

..

three
of
these
objectives,
Mr.
Szymczak asserted. "Rapidly ris¬
ing prices make it more difficult

..

reduces

heavier
on

burden

the rich,"

on

especially

a

the poor than

otherwise

it

spending from
would

have

•

anti-in¬
If the bor¬
rowing comes out of past sav¬
ings or from newly expanded
bank credit, it does not reduce
current spending — on the con¬
trary it increased "money in
been, the result is
flationary as taxes.

vate the problem of post-war ad¬
justment, and they are inequit¬
able because they impose uneven
and arbitrary burdens on differ¬

ent economic groups,

current

what

to

plan and operate our war ef¬
fort efficiently. they will aggra¬

portion of the funds from cur-/
If the borrowing

rent income.

*

circulation"

as

and feeds the

fires

L

■
■

yolume 155

Number 4036

THE COMMERCIAL &
FINANCIAL CHRONICLE

of. inflation.
Borrowing
from
the public is ,by no means ne¬
cessarily a non-inflationary fJPnancing method. 'It is non-in¬

;

flationary

only when

current income

it

349

Retail Food Prices Continued To Advance
Electric Output For Week Ended Jan,
17,1942,
Between Mid-November And Mid-December Skews
14.5% Gain Over Same Week In 1941
Retail

draws

prices of most foods continued to-rise between Nov. 13
The Edison Electric
Institute, in its current weekly report, esti¬
16, but the rise was moderate in comparison with earlier mated that the
production of electricity by the electric
light and
months, Acting Commissioner Hinrichs of the Bureau of Labor power
industry of the United States for the week ended Jan.
17, 1942,
Broadly speaking, the use of Statistics reported on Jan.-15.
Large seasonal declines for
was
3,450,468,000 kwh., which compares with 3,012,638,000 kwh. in the
pork,
% Defense
Savings Bonds
may eggs, and oranges/" and lower prices for butter reduced the total
corresponding period in 1941, a gain of 14.5%.
The output for the
:
help most to absorb current in¬ cost of the family food bill sufficiently to offset these
advances, week ended Jan. 10, 1942, was estimated to be
3,472,579,000 kwh., an
come, and we must all do our and the Bureau of Labor Statistics' index of retail food
increase of 15.7% over the
costs re¬
corresponding week in 1941.
part by using a portion of our mained at* li3.1% of the $935-39 average.
Thus, the cost of the
/.
'
PERCENTAGE INCREASE OVER PREVIOUS YEAR
incomes to buy such bonds. No food market basket was 16
igher on the average than a year
'

or

that

resources

4

would

otherwise

be

used

and Dec.

for

civilian purposes.

'

ago.

doubt thus far many bonds have
been purchased from accumu¬

,

lated

savings.

than

if

This

these

is

bonds

/

better

had

been

which added:

.

less
1

that
out

To

borowing
of

not

taxes.

does

current

be

relied

taxes

as

the

extent

not

upon

to

replace

i

well worth

Explaining

heeding.
that

;/

.

/

.

lent

or

were

the

ernment

of

reports

and

that

be

there

at

those

to

1940

United

States

monthly

Advances

adequate control of bank

in

Lard

Nov.

more

of

and

purchase
stocks

of

under

that

offers

1937

occurred

in

5

cities

'

the

be

may

terms

and

conditions

with

continuing

coffee

19 cents per

more

and

discounts

qualities other than

/'

for

15/16-inch

middling will be the higher of
(1) those applicable under the
1941 cotton loan program or

Item

Oranges
Eggs
Pork

on

the

average

markets

ule,
i

be

obtained

All

the

from

may

Commodity

Corporation.
offers must be submitted

telegraph
to
Commodity
Credit
Corporation, New Or¬
leans,
La.
The
offers
must
identify the cotton by a description of the grade and staple
and

warehouse

sideration

will

location.
be

Con¬

given

the

offers in the order received.

Catalogs
house

showing

locations

by

grade and
the staple length of the 1934 and
1937 cotton offered
r

for sale

+ 29.7

2.3

0

1.2

+
>

18——'.
1

8———;.

Nov.

.

22—

29—

Dec.

6

i

13——

+ 14.3

+ 31.2

Round steak

+

1.0

+ 20.5

Potatoes

+

+

6.4

+

2.6

2.3

The largest increases

+ 38.4

Index

/..

■

Foods

Cereals

.

J.',

and

Meats

1935-39

1941

111.1

—

Pork

110.4

114.4

-

112.4

103.2

—;

V

113.1
102.2

108.1

BY
=

ioo)-,.

-

vegetables

Jan.

oils

—.!

2,694,194

2,390,388

2.241,972

+ 17.3

2,712,211
2,464,795

2,424,935
2,174,816

2,053,944
2,033,319

1941

Wednesday,

Jan.

17——

1.542,000

+ 15.7

2,688,380

3,450,468

1,602,482

3,012,638

1,733,810

+ 14.5

2,673,823

1,598,201

1,736,729

—

FOR

RECENT

MONTHS

Thursday, Jan. 15

Friday* Jan. 16—

13,149,116
11,831,119
12,882,642
12,449,229
13,218,633
13,231,219

—

February

-

March

April
May

—_

June

^

July
August
September
October

13,836,992

14,118,619
13,901,644
14,756,951

—

137.3

111.7

90.7

111-0.3

1111-2

103.7

112.9

93.4

103.5

105.2
116.9

111/0

104.0

108.5

106.7

12,474,727

November

Kilowatt-Hours)

1939

Total for year

1938

1937

10,183,400

+ 17.4

+ 16.3
+ 18.9

+ 20.0
+ 19.1
+ 18.4

+ 21.0

+ 18.3

138,653,997.

9,290,754

9,256,313
10,121,459
9,525,317
9,868,962
10,068,845
10,185,255
10,785,902
10,653,197
11,289,617
11,087,866
11,476,294

/

+ 11.7

8,396,231
9,110,808
8,607,031

9,787,901
8,911,125
9,886,443
9,573,698
9,665,137
9,773,908
10,036,410
10,308,884

8,750,840

8,832,736
9,170,375
9,801,770
9,486,866

9,908,314

9,844,519

10,065,805

9,893,195

10,372,602

9,506,495
9,717,471

111,557,727

124,502,309

117,141,591

Two

223.2

weeks

High—Sept. 9
Low—Feb.

1942

17

High—Jan. 20
Low—Jan.

2

—

90.3

common

'

6

We

participation

we

make

his

84.5

as

overwhelm

/

223.3

not

223.6

feat

223.9

is

have to take
after

the

us.

change
and

our

174.7

219.9

our

we

will

depress¬
We

economic

do
de¬

military victory

171.6

223.9
220.0

We can, if we
sustain

a

will, maintain

prosperity.

We

can

continuing demand for
We can keep
industry
going at high levels.
We can

goods.

for

ex¬

work,

ideas, thrift
socially
valuable

other

3. The

right to adequate food,

shelter and medical
/
',
//, :
4. The right to
security, with
freedom from fear of old
care.

age,

want, dependency, sickness,
employment and accident.
5. The

tem

from

In

won.

business

implementing the

clothing,

part

our

221.5

217.0

pro¬

ties and amenities of life in

right to live in

of

free

a

un¬

sys¬

enterprise,

compulsory

free
labor,4 irre¬

sponsible

there must be

nation that

a

ductive years.
2. The right to fair
play, ade¬
quate to command the necessi¬

,

a

of

freedoms," follows, accord¬

production

not permit a
post-war
ion to

citizen

service.
state

up

minds
•

a

ing to the Associated Press:
1. The right to
work, usefully
and creatively
through the pro¬

in

On this point the
report said:
We have
to
make

95.6

—j,

it said,

case,

contribution, to play

as

The program,
"four

free citizens.

automobile

his

part

gressive, democratic country.

He added:

play

em¬

■

achieve a society Jn
which every one
capable of ahd

objects and public discussion of

merits,

substantially full

can

willing to work can find an op¬
portunity to earn a living, to

national purpose and

democratic

depression.
~

94.9

80.1

ago, Jan.
Month ago, Dec. 20
Year ago, Jan. 20

1941

91.6

94.7

Saturday, Jan. 17
Monday, Jan. 19
Tuesday, Jan. 20—

maintain

ployment.

intelligent planning to prevent a
later economic
tailspin ending in

92.8

90.3

112.5

223.3

1940

+ 12.5

12,213,543
12,842,218

December

that

92.4

89.5

105.6

112.9

90.4

91.3

tRevised.

223.1

over

11,683,430
10,589,428
10,974,335
10,705,682
11,118,543
11,026,943
11,616,238
11,924,381
11,484,529

and general consumers'
goods.

1146.1

*——-r-.'

of

1941

January

'■

1940

94.6
99.6
93.1

;

(Thousands

% Change
1941 ' /

housing,

107.4

14

1938

1,619,265

3,002,454

88.0

114.1

221.9

1939

2,558,180

*3,472,579

ing the national income at $100,000,000 and warned that if the war

99.6

101.6

:

1940

+ 15.6

98.8

119.9

Tuesday, Jan. 13

;/

1941

over

—

80.8

107.0

131.5

additional

2,247,712

+ 15.7

lasts several years, the nation
may
experience a post-war boom in

99.4

Moody's Daily
Commodity Index

2,587,113
2,560,962

+ 14.4
1

The report called for maintain¬

95.7

135.9

114.4

——.

+ 15.8

•

+ 14.5

94.1

115.1

118.3

and

t

2,845,727

DATA

as

93.4

97.4

109.3

114.1

——

^Preliminary.

94.8

110.8

110.5

Dried

2,622,267
2,608,664
2,588,618

+ 17.3

+17.9

♦Revised.

their

93.5

120.9

/1Q6X

2,334,690
2,376,541

+ 16.5

1

2,228,586
2,251,089
2,281,328
2,283,831
2,270,534
2,276,904
2,325,273

2,583,366
2,576,331

+16.8

2,757,259

1942

10—

Jan.

-

1939

97.3

112.9

111.0

Canned

2,654,395

+ 19.1
-

*3,288,685

Through efforts to

Aug. 15,

j1940

138.1

Fresh

2,605,274

+14.8

+ 16.2

—

planning by all of us."

--•: /

138.9

——

Beverages

v.

Dec. 17,
.

102.2

105.4

100.5

.

14,

1941
111.6

107.4

.

...

120.6

Fish, fresh and canned
Dairy products
Eggs

+ 13.9

2,338,370
2,231,277
2,331,415
2,339,384
2,324,750
2,327,212
2,297,785
2,245,449
2,214,337
2,263,679
2,104,579
2,179,411
2,234,135

1942

our

COMMODITY GROUPS

Oct.

Nov. 18,
.

102.5

veal

Chickens

Sugar

Average

Dec. 16,,

bakery products—

—

and

OF FOOD

113.1

Lamb

Fruits

COSTS

-*1941.

-

,

2,365,859

3,003,543
3,052,419

—-

3—

with

numbers of food costs by
commodity groups for the
period and for Nov. 18, 1941, Oct. 14, 1941, Dec.
17, 1940,
and Aug. 15,
1939, are show^below:
current

Commodity Group—

2,211,398

2,279,233
2,211,059
2,207,942

+19.3

arid programs to win the war and
to win the peace must
grow out of

(1.7%), Jacksonville (1.6%), Chicago and Cincinnati (1.4%).
The
drop in prices of fresh fruits and vegetables combined with the
large seasonal decline for pork were responsible for the decreases.

All

2,109,985

2,532,014
2,538,118
2,558,538
2,554,290

19.8

'

2,975,704

Angeles (2.8%), Scranton (2.1%), Washington, D.
C., (1.8%), and national 40-hour work week.
(1.6%).
Sharp advances in prices of fresh vegetables,
President Roosevelt said in his
greater than average increases for beef were
responsible for message of transmittal that
"plans
these higher costs.
The largest decreases were for Providence

(Five-Year

2,360,960

2,351,233
2,380,301

+ 18.2

which included the right to work
and the right to
security and a

reported for Los

were

and

RETAIL

2,198,266

2,206,560
2,202,454
2,216,648

+ 19.2

a
report,
transmitted
to
Congress yesterday (Jan. 14) by
President Roosevelt, the National
Resources Planning Board out¬
lined a nine-point program
on
planning for post-war America,

7.4

2.3

Baltimore

OF

2,413,600

2,453,556
2,434,101
2,442,021
2,375,852

+ 20.9

In

that retail food costs advanced in
28 cities, declined in
22, and remained unchanged in one between

INDEX NUMBERS

17.9

19.0

+

2,931,877

—

Week Ended
Jan.

t

+ 19.1

2.0

+■

__—

reported

Nov. 18 and Dec. 16.

2,193,750

+

Post-War Program
For U» S. Proposed

+ 20.8

1.3

Rib roast

also

2,152,779
2,159,667

2,399,805

% Change

.

1.4

+ 29.7

Bureau

2.377,902
2,426,631

+ 17.9

2,839,421

—

20—

2,321,531
2,312,104
2,341,103

1937

18.1

+

2,889,937

,

—

/ 27———

2,139,281
2,358,438

+

2,882,137
2,858,054

.

15

Nov.

Nov.

1,937,486
2,154,099

+ 19,3

2,817,465
2,837,730 i
2,866,827

,

Nov.

2,402,893

+ 16.6

2,816,358
2,792,067

—

25

1938

2,145,033

4-19.9

2,769,346

—

4

11—.—.

1939

+ 19.7
"

2,773,177

.

.

NOV.

+ 25.7

1.3

chickens—

.9

The

>.•

1.1

Flour'

.7

tomatoes

available, upon request to the
Corporation, New Orleans, La.,
at a price of $10. The 1934 cata¬
log will be furnished without




9.6

—.

...

Oct.

December,

1.1

+

Roasting

+ 10.3

are

charge
to
persons
who have previously
purchased
the 1937 catalog.—' —

Oct.

Dec.

compared with

Evaporated milk
Sugar

+

Fats

ware¬

the

Coffee

+ 23.6

4.2

—

Beef and

by

5.5

—

spot

higher,

Item

+

based

10

—.

6-i.—.

Oct.

follows:

■,

7.5

+

—

bread

Canned

(2)

the 1941 loan sched¬

whichever is

Credit
.

or

of

30-.—-—,
13

Sept.; 20
3ept. 27

Nov., 1941, /Dec., 1940
(Percentage (Percentage
Change)
Change)

Cheese

the Memphis market will be
used.
A schedule showing the

,

—21.7

——

chops

White

on

discounts

as

Milk, fresh (average)

but
not
including 11/16-inch
during the period from Dec. 15,
1941 through Jan. 3,
1942, or (3)
the nearest designated spot mar¬
ket on Jan. 10, 1942.
For staple lengths 11/16-inch
and
longer,
the
approximate
average during the same period

premiums and

were

compared with

the average of the 10 spot mar¬
kets for staple lengths up to

^

Aug.
Sept.
Sept.

customer,

slight

15.6

Kilowatt-Hours)

December, 1941,

Nov., 1941
Dec., 1940
(Percentage (Percentage
Change)
Change)

Butter

///'/,/..

Premiums

important foods

December, 1941, v

linas. The price will vary for other
locations in the same amount as

stated:

16—.

23__;

The upward trend in prices also continued for

producing

1940 for the

middling cotton stored in the
Group B mill area of the Caro-

gram." The announcement further

Aug.

countries, as well as to higher shipping
rice, prices were 19% higher, and for bread,
10% higher.
Prices of cereals and bakery products other than
bread, flour, and rice, were only slightly higher than a
year ago.
/ Changes at retail from Nov. 18 to Dec. 16
and since

the

th<b* Ideation differentials used in
the "Cotton Sales for Export Pro¬

__.

Aug.

Dec.

For flour and

costs.

it is explained, will be
pound for 15/16-inch

program,

18,

and

of

1940

over

2,425,229
2,651,626
2,681,071
2,760,935
2,762,240
2,743,284
2,745,697
2,714,193
2,736,224
2,591,957

—.

9——.

higher in most cities on Dec. 16 than on
the rapid rise which has prevailed
during

were

ening

under
of

Aug.

Act, and prices of short¬
in cartons were 58% higher.
Advances amounting to 30
to 40% over a year
ago were reported for canned peaches, navy
beans, and canned red salmon.
Coffee prices were also
up 30%,
due largely to higher minimum
price levels set under agreements

to

cotton

purchased

*15.7

(Thousands

1940

—<

2

Dec.

7.

prices

19-i

26—.

ad¬

ernment purchases under the Lend-Lease

program recently an¬
nounced, will be accepted begin¬
ning Jan. 19. The price at which
cotton

WEEKS

1941

plies and greater demand.
Lard prices were
up 65% above the
relatively low level of the prvious year partly because of Gov¬

Government-owned
and

16
24

■

—.

July

tomatoes, navy beans, and cheese, as these
commodities,
together with lard, are being exported in considrable
quantities.
As compared with Dec.
3, 1940, prices of some of the more
important fresh vegetables such as potatoes,
cabbage, and onions,
were
more
than 40% higher,
reflecting somewhat smaller sup¬

the

1934

13.9

22.7

14.5

-

2,903,727
3,178,054
3,199,105
3,220,526
—.3,263,082
; 3,233,242
3,238,160
;■
3,230,750
3,261,149
3,132,954
3,322,346
3,273,375
3,273,376
3,330,582
/ 3,355,440
ilZii/ 3,313,596
3,340,768
3,380,488
3,368,690
3,347,893
3,247,938
3,339,364
3,414,844
3,475,919
3,495,140
3,234,128

12_

Oct.

canned

Cotton Sales Program
13

\

"

RECENT

—,

July

13, which froze sugar stocks
supplies available to retailers

limited

declines

most of the year.

reserves

Commodity Credit Corporation
Jan.

15.8

States

*1941

5_.—

Aug.

prices of milk

moderate

vances

policy is fully to sup¬
fiscal policy.
/
;•
: /:

on

Total United
♦Revised.

July
July

year

bread,

CCC Conditions Of

stated

13

13
17

% Change

and bread have been made dur¬
in most of the cities covered by the Bureau
of Labor Statistics' surveys.
Between mid-November and midDecember, price increases for milk were reported in 7 cities. For

if monetary

plement

14.5
14.4

16.5

23.0

___

Coasti_______________:

I-

.

Week Ended—

levels.

in

ing the current

consumer

be

12.9

,_i

;

Mountain—

Pacific

'42

16

11

14.3

_

Rocky

Jan.

18.1
12.8

15.4

_

DATA FOR

hoarding and runs on grocery
September, 1939. However, this situa¬
per

the

restricted

should

/

__.__.i___.,

States______

were

of

particularly after the order of Dec.

Govern¬

further

similar

in

He added that Gov¬

regulation

will

Industrial

Central

Jan. 10, '42

16.4
11.0

greater

,

credit

Central
West

''

Atlantic—

Southern

creating

mid-December, supplies

tion has not been general, and where it has
occurred, grocers have
voluntarily limited purchases to 5 or 10 pounds

ment," Mr. Szymczak "stated that,
therefore, monetary controls are
an integral
part of an aggressive
fiscal policy.

much

scattered

some

stores

,

a

to

in

By

Sugar prices, generally very sensitive to war
conditions, ad¬
vanced
moderately.
After the attack on Pearl Harbor there

could easily be offset to a con¬
siderable-extent if people bor¬
rowed to replace the funds
paid
taxes

mid-November.

increasingly

"carefully
planned tax and borrowing policies

in

Middle

—.

price decline,

-

selling bonds to the banks.
The widespread plea
''Buy Defense
Savings Bonds" is/ one

/

Jan. 17, '42

New

■'*■&

..

volume, with a consequent sharp
Supplies of pork and eggs were also marketed in
large quantities, and the decline of/ butter
prices
reflected an unusually large supply.; The
Department of Agri¬
culture reports that supplies of butter on hand
as of Jan./l
are
the largest that food dealers have ever
reported on that date. ;

pre-

than

r.

in

available

rather than tax,
borrowing from
the public is still much better
•"

scarcity

a

% ventive. But to the extent that
the ^Government must borrow

'*■"

-/;.-/

year,

can-

inflation

an

."/

Week Ended-

—

Major Geographic Divisions—
England—

>er,

-

come

income, it

Dece

%/'%•• ■•;:/•
'/"
Retail prices of oranges declined 22%
between mid-Novem¬
ber
and
Both
mid-December.
California navel and Florida
oranges were late in arriving on the market this

anti-inflationary than ad-

ditional

of

elimihary reports indicated addimoderate
advance
in
pribes of sugar, flour,/navy
beans,
beef, and coffee, with further seasonal price declines for
dranges
and eggs, and lower butter
prices/* saiojhe Bureau's announcement

purchased by banks, but much

,

By the end

tional

private power, arbi¬
trary public authority and un¬
regulated monopolies.
6. The right to come and
go,
to, speak or to be silent, free
from- the spyings of secret
pol¬
itical police.
~
7. The

the

right to equality before

law,

with equal
justice in fact.

access

to

8. The right to

education, for
citizenship, and for
personal growth and happiness.
work,

for

9. The right to
rest, recrea¬
tion, and adventure; the oppor¬
tunity to enjoy life and take

part in
tion.

an

advancing

civiliza¬

Fifth

,

Reserve Banks

Report On Business
in the various

-Indications of the trend of business

Federal Re¬

districts is reported

from

the

"Monthly

Francisco.

■

First

(Boston) District

trend. This fig¬
with 92 in July,
1940, at the start of the defense
program, and with 86 in August,
1939, just prior to the outbreak of
the European war.
Each of the
major segments of the index—
production, primary distribution,

general

of

"level

the

during November
slightly from the high
which
prevailed during

busines activity

decreased
volume

compares

ure

Boston, in its "Monthly Review"
of Jan. 1, reports
that in New

England

September and October, after al¬

and

lowances had been made for

advanced during

substantially higher than
vember

a

further

Total

in No¬

states:

•>

<

freight

revenue

car-

107,890 during the four-week
period ending Dec. 6, exceeding
the total of 93,778 for the corre¬
sponding period last year by
'

;

the

than

in

with

increases

November

New

six

12.2%

was

a

year

each

in

larger
ago,

the

of

during Novem¬

estimated

is

have

to

been

In

order

Second (New York) District
its

"Monthly Review" for
Jan. 1 the Federal Reserve Bank
of

York

New

that

reports

data

available for December indi¬

now

further

cate

The

progress

department store sales increased

states that dur¬

also

of Production

above

of

distribution

and Trade*—•

production

1940

■?'

were

Consumers'

.'

sales

nevertheless

Nov.

1108

till

115

1116

126

-V,

1128

135

ti38

105

L

118

1130
1140

1118

101

1118

;■•

,

e

•

tl20

•

•

1103

tl03
t95

192

tl05

123

1125

1126

109

till

1112

92

103

tl02 V

tl05

and ended the year

Distribution

100

tioo

condition

Miscellaneous

(100

—

1935-39

93

102

108

109

115

1125

culture. ;v Banks

1126

.,.v

__—

=

1926

average)

New

=

1919-25 average)

York City

Outside

New

29

City

—

27

30

59

59

66

^Adjusted for seasonal variation.
tPreliminary.
IRevised.
indexes of production and trade have been recently revised,

The

to January,

1935, and in other cases back to January,

indexes are

in some
Tabulations of

back

cases

the revised

available upon request.

Third

(Philadelphia) District

Federal Re¬
serve Bank of Philadelphia, in its
"Business Review" of Jan. 1, that
It is stated by the

"purchases for consumption have
expanded to unusually high levels
in the Third Federal Reserve Dis¬

production

trict;

sorbed to

an

is

being

ab¬

increasing extent by

growing
defense
requirements;
and prices generally are advanc¬

ing."

The Bank further reported:
and threatened short¬

Actual

of raw materials and fin¬
ished manufactured goods have
ages

stimulated accumulations of in¬
ventories
in
some
lines and
restricted

have

in others.

civilian buying

Industrial operations

generally are at high levels;
expansion of facilities is
in evidence, and
employment
and
payrolls have been un¬
usually well sustained for this
period
of
the year.
Freight
shipments have been large for
further

this

season

and productive and

distributive activity generally is
above

a

year ago.




The

31

61

.

York

1940.

Fourth (Cleveland)
The

Federal

Federal

Bank

to

customers

in excellent

increased

earn¬

Reserve

during No¬
December
Eighth District industry and trade
at

maintained

ditions" it is also stated:

'

>

the

shoe produc¬
Eighth District is es¬
timated at 26% below October.
Sales of ordinary life insurance
in Eighth District states in No¬
vember were 10% less than in

largest in history, and payrolls

October and 14% above Novem¬

were

ber, 1940.

ports,

Revenue freight carloadings of railroads operating

more

result of wage

of metals
was

and

metal

of defense

goods

curtailment

was

reflected

somewhat

which
in

broadened

scope

as

time

passed.

Consumer- purchasing
considerably
during the year, and much of it

power

increased

spent on
merchandise.

was

a

wide variety of
'

of

as

fol¬

26

expulsions from the as¬
sociation, 6 suspensions for as
long as one year, 29 fines ranging
to $1,500, 32 censures of mem¬

up

bers for
in

practices which resulted

complaints. In some cases, fines
censures were coupled.
,
*

that, in view of these facts, the
association found

sustained

in

120 of the large number exam¬

"fringe," but we have not al¬
been certain how wide an

ways
*

it embraced. We know

area

H

surveillance.'

our

The

of

those

of

com¬

examined

that this propor¬

mean

tion of the

de¬

membership engaged

in serious abuses of the princi¬

primarily in

products

•

members

to

does not

Novem¬

intensified efforts to increase the
flow

•

relationship

plaints

ples

will be reflected

now

that it is not large and beyond

near

whereas,
shipments
clined seasonally.
t

war

1941

against only

ined? We have talked about the

peak established last Sep¬
tember. 'The output of lumber
well

in

cause

file' complaints

to

and

maintained

were

,

of

rules

the

of

matter
5

6%

or

business

this

of

the

and

As

association.

a

not more than

fact,

of the complaints in¬

volved violations of

seriously

a

objectionable nature.
•.

Mr. Fulton added that the Asso¬

ciation will continue to
members

doing.

is

and

J;

,.

police its

capable

of

so

;

.

•

,

already

.

dominant in defense production in

U. S. And Mexico Form

..

during

ending Nov. 29

less and 15%

greater,

November

pansion

of

ductions
lines

in

defense

less

some

and Twelfth

and

ployment

essential

District

payrolls-

Joint Defense Board
The

ex-

activity
than compensated for re¬

more

■

continued

em¬

con¬

tinued to rise.

creation

States-Mexican

of

a

joint United

Defense Commis¬

sion, to study problems of defense
the
two
countries, was an¬
nounced on Jan. 12 by the State

of

Department.

In

a

nouncement the State

formal
an¬
Department

said that the Commission had been
;

The value of non-residential
initiated

construction

that of recent
measure

No¬

sharply

increased

vember

in

over

months, in large

owing to

$91,000,000

a

contract for iron and steel mak¬

ing facilities. Private residential

building, excluding
000

life

insurance

project

-housing

an

$8,000,-

company

in

San

Fran¬

cisco, continued to decline from

two

in

decline

The

months

department

the. preceding

of

sales

halted in No¬

was

the
military

agreement

under

up

reached

representa¬
tives of the Mexican government
by

in

Washington and United States
spring. It is expected
that the Commission would func¬
officials last

tion

in

capacity similar to the

a

American-Canadian
fense Board set up

The

State

Commission

Joint

De¬

in 1940.

Department said the
will consist of Brig.

Gen.

Miguel S. Gonzales Cadena
Gen. Tomas Sanchez
Hernandez for Mexico; and Viceand

the mid-summer peak.

store

set

Brig.

Admiral
son

and

Alfred

Wilkinson

John¬

Maj. Gen., Stanley Dun¬

bar Embick for the United States.

ago.

vember.

V

Ninth

(Minneapolis) District

The Dec. 29

diversion
man¬

6%

District

respectively, than in the simi¬
lar periods a month and a year

extraordin¬

of materials to armament

ufacture,

were

preparations. Civilian

output

Eighth

the four weeks

of the urgency

arily large during the first three
quarters of the year. The later

the

rin

products

the greatest ever reported,

in part because

November

tion in the

sharply, as
increases and
overtime payments. Production
even

substantially

ber,

the

about

"Monthly Business Review" that
"for the year 1941 as a whole,
business activity in the fourth dis¬
trict was at new high levels. From

up

district"

of

Bank

According to preliminary re¬

the summary we also quote:
Total
employment was

lows:

the

*

In

Cleveland indicates in its Dec. 31

a

increased

operations at refineries in this

District

high levels of recent months. In
the Bank's Dec. 31 "Business Con¬
of

year
earlier.;
Daily
petroleum production

a

•average

••

St. Louis reports that
vember
and
early

were

District

Reserve

of

(St. Louis)

Eighth

Velocity of Demand Deposits*—
(100

com¬

%

serves

110

Wage rates—
(100

had been disposed

cases

sharply

ing assets, ample, cash, and re¬ the area: ships, planes, and nonin
excess
of legal re¬ ferrous metals." The
report goes
quirements.
on to say:

Labor Statistics—

average)

with

able

were

needs

the

meet

1104

•

tlOl

100

services

Cost of living, Bureau of

194

100

plants

at

trict trade, industry, and agri¬ production under the stimulus of

y

/.'i, 1107

103

•

activity

upward, sweeping trade to re- Twelfth (San Francisco) District
;y cord ylevels.Notwithstanding
The Federal Reserve Bank of
the dislocations caused by prior- San
Francisco, in its "Business
ities, material shortages,' and Conditions" report ' for Dec. 29,
limitation programs,,1941 was a
says that "in the Twelth District,
banner year for Seventh Dis- further
expansion of industrial

100

consumer

month

:

was

goods—total
goods—total
Primary distribution
to

*

Industrial

Non-durable

-

filed

NASD

aminations,

in November,
bilt remained at a much higher
level than in the corresponding

Pushed upward

Durable

■> v.

result of those ex¬

a

and

declined

.

of 1929 and 1937.

96
•

Mr. Fulton

last year,

reported. As

Building activity in this district,
as
measured by the value of
construction contracts awarded,

.

:

103

goods

of
,

v:

(Chicago) District

Seventh

91

-

goods

Association

producing war materials and a
vember, pig iron production was temporary curtailment of consum¬
Commenting on these figures,
slightly lower, and construction er purchases at retail outlets." In Mr. Fulton said in his report:
•
contracts were
awarded in
a its£ Jan. :l "Monthly Business Re¬
Consider that this Association
volume smaller
than the
re¬
view," the Bank also reports:
has approximately 2,900 mem¬
cord-breaking
totals reported
Total v freight-car
loadings
bers and reflected that nearly
for August, September, and Oc¬
evidenced a counter-to-seasonal
1,000 have been reached by our
tober. Textile activity increased
gain in November as compared
examining processes to date. Is
in November to a new high rate.
with
the * preceding
month.
there not cause for satisfaction

101

durable

non-durable

and industrial activity in the

ness

Wholesale

year.

giant defense program, spiraled

109

105

goods—total

Consumers'
Consumers'

ex-

points.

Oct.

Sept.

99

104

goods

-

production, lifted
by Government spending for the

three

rose

98

non-durable

below

re¬

plaints against 120 of its mem¬
bers.
By the end of the year, 75

year ago. yln the first yy Eleventh (Dallas) District H
December, although the
According to the Dallas Federal
the outbreak of war Reserve Bank, "the initial effects
apparent in the smaller of the outbreak of war upon busi¬

gain,

the

1941

101

;

goods—total —
durable goods

Producers'

Producers'

to

of

primary

of

index

.

NOV.

and trade

Production

:Producers'

inventories

and

narrow

a

effects

seasonal factors,

substantially

the

result

a

long-term trend)

(100— estimated
Index

Ho

continue

rise.

half of

than usual in November and as

ing November this bank's monthly
index
of •. production and trade
rose three points to 111%
of es¬
Indexes

''

but trade gains

year,

substantially, after declining in
October,
and
continued
well

the level of a year ago. Follow¬ by a combination of higher wage
ing the seasonal peak reached rates and more man-hours, pay¬
in October, railway freight traf¬ rolls rose to an all-time record,
fic
declined considerably less the Bank likewise says:

using scarce materials.

Bank

but

Dealers,

em¬

ployment 11% higher than last

District

houses,

month

in
arm¬
ament production and continued
curtailment
of output in other
industries

Sixth

and chain store f In its Jan. 17 "Business Condi¬
systems, on a seasonally ad¬ tions" the Federal Reserve Bank
justed basis, showed definite of Chicago states that more men
gains between October and No¬ .and women were employed iji the
vember. Retail sales of passen¬ Seventh Federal. Reserve District
ger cars are estimated to have during 1941 than ever before in
run higher than in the previous
history, exceeding the boom years

bales in November last year.

In

November

•

months, but failed to regain the

was

25% and

Federal Reserve Bank of Atlanta:

trade declined seasonally in No¬

following

Securities

of

tion

busi¬

regarding

celeration

November,

Director of the National Associa¬

'

high level prevailing in August.
Sales of department stores, mail

England

following

Eleventh District included an ac¬

99,122

New

The

cember .last

bales, as compared with 119,319
bales
in
October
and
83,005

in

District

Executive

Fulton,

•

sharp recession that had charac¬
terized
the
two
preceding

During November the amount
of raw cotton consumed by mills
v

Tenth (Kansas City)

H.

.

upon

Considering

in
Wallace

*

retail trade recovered markedly

by 6.1%.

1940,

ber,

November, 1940.

over

ceeded the record level of De¬

in

Membership

ported to the governors of that
ness conditions in the Tenth Fed¬
organization at its annual meeting
eralReserve, District.: was re¬ in New York City on Jan. 15, that
rayon
yarn
shipments in the
ported in the Dec. 31 "Monthly membership declined slightly to
yUnited States were up 11%, to¬
Review" of the Kansas City Fed¬ 2,883
firms during
1941, from
bacco manufacturing • ran
well
eral Reserve Bank:
2,899 a year earlier. /
;
ahead of activity a year
ago',
Mr. Fulton's report also covered
The wheat prospect in the
and
bituminous
coaloutput
western part of the belt is ex- a year of increased activity by the
gained 7%. Shipyards and air¬
Association
in
policing of : £ its
cellent.
craft plants continued on full
hAh#
membership.:: '* »
"v" >1
Cattle slaughter and the protime, and many scattered in¬
The NASD was organized under
dustries worked multiple shifts
y duction of petroleum, zinc, and Federal law
by securities dealers
Si'on various phases of defense y lead are in large volume. Outto promote high standards of busi¬
put of flour and coal, after de¬
i';-; work.
y Vyy;.:y
ness. conduct throughout the in¬
clining in November, again is
Sixth (Atlanta) District *
dustry and to provide members
rising.
Construction
is
very
with an instrument of self-regu¬
The following regarding busi¬
large because of awards for de¬
lation.
'
ness conditions in the Sixth Fed¬
fense
projects; other building
eral Reserve District is from the
Approximately one-third of the
is being curtailed by priorities. 5
Dec. 31 "Monthly Review" of the
membership was examined by the
Farm income is

in November.

9,926,000 pairs, a total of 28.5%
smaller than was produced in
October but exceeding Novem¬

NASD

products

producers'
and
consumers'
categories, increased somewhat

Production of boots and shoes

ber

42%

was
'

livestock

output and by ma¬
terial shortages.
Production of
nondurable goods, in both the
tions

England States.

in New England

and

stock

to operate at virtual
capacity last month. Cotton con¬
sumption in Virginia and the
Carolinas exceeded November,
1940
consumption
by
18%,

spring of 1940, while consumers'
durable goods lines were again
adversely affected by limita¬

v

•

■

continued

accounted

industries

war

part:

Department store sales

again increased.
Farmers' cash
income
from
important live¬

Industries in the Fifth district

producers' durable goods, which
has mounted steadily since the

partment
stores
and apparel
shops in New England during
November

Bank reports in

largely for the -further advance
in the index of production of

116 de¬

volume of

of

output

the

producers' durable goods and
production of consumers' durable goods.
Continued gains in

■

sales

The

says:

shown between

loadings in New England were

15%.

consumer-

'V-Visv
:' In the case of production, di¬
vergent tendencies were again

mary

The Bank's

ago."

year

"Review"

to

distribution

November.; j . <
Continuing,: the Bank's sum¬

cusj

tomary seasonal changes, but was

•

'■.:..

■■

timated long term

of

Bank

Reserve

Federal

The

;■ ■,;.y

..

levels.

"Monthly Review"

of the Richmond Federal Reserve

Cleveland, Richmond, Atlanta,
Kansas City, Dallas and San

Philadelphia,
Minneapolis,

New York,
Chicago, St. Louis,

Boston,

31

Thursday, January 22, 1942

•

tinued to expand to new record

District

(Richmond)

The Dec.

in the following extracts which we give
Review" of the Federal Reserve Districts of

serve

1

& FINANCIAL CHRONICLE

THE COMMERCIAL

350

of

the

Federal

"Monthly Review"
Reserve Bank of

and

rose

moderately

increase

continued

Sales

the

through the first week of De¬

but

checked

Minneapolis has the following to

cember,

report:

abruptly upon the outbreak of

Business

ber

reached

an

October

and

all-time high for the

Deposits at both city
country member banks con¬

month.
and

volume for Novem¬

exceeded

Sales

hostilities.

somewhat

was

in

the

recovered
week

pany,

a

subsidiary of the New
Exchange, has elected

York Stock
Howland
Klem

to

S.

Davis

and

the

Board

of

ending and re-elected

Dec.

20, but were up only 1%

over

a

year ago.

Quotation Co. Elects
The New York Quotation Com¬

as

Charles

Directors,

Directors

Emil

Schramj Robert L. Stott, John A.
Coleman and Eugene Lokey..

THE

Number 4036

Volume 155

of

Canadian Business Index

record

V

In December

Is Down In December

.

The

.

merce,

Canadian

Bank

Toronto,

-

index

Jan. 20 that according dian v industrial activity declined
.to preliminary figures 24,146,130 cotton spinning spindles were irv between mid-November ana mid-place in the United States on Dec. 31, 1941, of which 23,063,112* December* from 165 to 161 (1937
were operated
at some time during the month, compared with 23,- equals 100),.while the percentage
oi
current factory capacity util¬
■069,146 for November, 23,043,310 for October, 22,963,944 for Sep¬
ized fell from 117 to 115, it was
tember, 23,029,066 for August, 23,028,082 for July, and .22,799,060
lor December, 1940.
The aggregate number of active spindle hours announced on Jan. 12 by A. E.
•reported for the month was 10,539,876,175.
Based on an activity Arscott, General Manager of the
of 80 hours per week, the cotton spindles in the United States Bank.; The decline in December,
were operated during December, 1941 at 124.0% capacity.
This per¬ Mr. Arscott said, was partly sea¬
centage compares, on the same basis, with 129.4 for November, 125.8 sonal, as in- the case of foodstuffs
•Tor October, 123.7 for September, 125.3 for August, 123.0 for July, and clothing, but can also be part¬
and
105.2 ::for
December, .1940.
The average number of active ly accounted for by the contrac¬
tion of supplies for civilian con¬
spindle hours per spindle in place for the month was 437. The
total number
of cotton spinning spindles in; place, the number sumption, especially in the auto¬
ractive, the number of active spindle hours, and the average hours motive,'iron and steel and elec¬
trical trades.
The increase in the
per spindle in place , by States, are shown in' the following; state-

clines,

and

'

:

,

■■■

•

Cotton

Growing

v

other States,---^—-

■All

.

-

Mississippi
New Hampshire
..York.-.—

North Carolina,

——*

-

Tennessee—-

t

.

815,188 ,
5.276,784,

—893:488
5,382.576

Island

Rhode

South Carolina

^

,

■

553,096
1

-617,410-

228,846
598,816 J

;

—_——

-All other

States

—

„

542,648

•

-i
242,322
Virginia—636.596:

.Texas
;

.

.' 437?

552,620

-

464

-

236,782,899

v

J - 1,789,248
i;:. 491,564
3,165,446 -> 3,034,310
645,684, -;.f •■/,, 599,238,/;
3,119,194
2,806,486.
153,408 -.i , 133,824 *.
277.84J0
262,480
328,540
296,914
5,792,966
£ 5,634,146

.^-——-——

^ per spindle
in place

.

8,327,010,223
1,976,083,053

5,009,228

522,840

Georgia
j Maine)
Massachusetts

r

■

649,690 :

'

10,539,876,175

17,404,194

714,780

....

Connecticut

; New

i.
-v

'5,493,606

0^.1,814,724

Alabama

•

^23,063,112

17,937,744

States^--

England'States„_l^"—i

New

,

24.146,130

1———-

States

Total

December

Dec. 31

State—

United

Average

Spinning Spindles
' In pidioe
Active during

360V

Arscott's

,331

to

885,162,266

488

171,314,030
1,468,620,877

328

263,245,009.

»

.

The result of

? as

498

504

cially

199,031,648

er

369

444'-

the

in

Paper

garments.

409

and

boxes

•

322

case

be

at

probably
least $10,000,000,000

greater

in

1942

will
;

will

be

nearly double what
increased

But

war.

in

consumers

for

average

of

and

bags

indication

an

of

incomes, taxes,
purchases
leave the money income of
defense

ices

bond

Increased

production, how¬

war

will substantially reduce
? the quantity of factory products
remaining
for
civilian
use,
ever,

probably to less than the quan¬
tity in 1940, so that consumer
income in relation to available

1941

•

corresponding 1940 figure.,:, > >

i;

.

November was due to fewer
working days together with a
cessation of wage increases. The

.

index

is

still,

however,

Agricultural

Products To U. K. Over

1941.

r
;

100)

.

shipment to

allies and for
and the substitu¬

our

other purposes
for

i

;

be somewhat
the increase in
prices of industrial commodities.
ucts

the 1941 con¬
record,
Thomas' S.

struction

on

Holder? President of F. W. Dodge
Corp. states: "This
record

volume

post-depression

was

compounded

construction
land and Russia. We are also, buy¬
program and, up to last Septem¬
ber, a rapidly mounting volume ing food and feed supplies to meet
of public and private non-defense the needs of our territories under
construction." According to gov¬ separate congressional authority."
of

a

large

defense

Animal

proteins—dairy, poultry
the total 1941 construction pro¬ and meat products—were largest
gram was for defense construc¬ by volume and value in the No¬
tion. The 1942 program is pres¬ vember shipments to England, as
ently estimated to equal in total they had been in previous months.
long
list
.of vcanned -and
dollar volume that of 1941, with A
a vastly increased
war construc¬ dried fruits and vegetables, cereal
tion prosram, volume of civilian products, and other foodstuffs, as
construction curtailed to absolute well as some non-food agricul¬
essentials and an approximately tural commodities, made up the
normal
volume
of maintenance rest of the shipments.

ernment

estimates

about 40%




of

ers

for;, farm

pected

to

products

hold

around

are

ex¬

neither greatly above
nor
greatly below that point,
the U. S. Department of Agricul¬
ture reported on Jan. 16. In other
words, prices received in relation
to prices paid, interest, and taxes,
are expected to average about the
same as at the end of 1941, when
the ratio was at 99% of parity.
The Department's announcement
further reports on the farm out¬
look for this year as follows:

Sustained In December;
Delaware

Sliglitly Up
in

Employment

be the largest on
record.
However, despite the
record supplies expected, prices
are likely to rise, partly because
to

greatest expansion in the month
and

the past year has been

over

the

in

industries. Com¬
with 1940, the greatest
gains were at plants turning out
transportation equipment, forgings and castings, manufactured
steel products, and brass and
heavy

pared

consumers'

In

bronze.

the

lines

most

over

creases

ago

year

in¬

were

worsted

and

woolen

at

goods

pronounced

a

mills,

canning factories, and establish¬
ments manufacturing drugs

and

chemical products.

earnings of
in Pennsyl¬

hourly

Average

workers

factory

vania increased in December to

peak of 85 cents, or 11

new

cents

hour

an

prevailing
of

number

the

rate

earlier.

The

worked

per

above

year

a

hours

to 41.4 from
40.7 in November, and average

week

expanded

advanced

earnings

weekly

nearly $1.00 to $34.79, the high¬
1923.

est in records back to

Employment at reporting
increased

factories

Delaware

less than 1% from November to

December, but payrolls rose 6%

working time showed a gain
The sharpest expansion

and

of 4%.

in activity was at

plants turning
transportation equipment.
The number employed during

out

1941

averaged 27%

1940

in

and

than

more

payments

wage

nearly 53% greater.

were

Fed.

Old-Age Insurance

Coverage Up 5,000,000
At the end of 1941, the

factories
at

the

to approximately 40,000,000
employees or some 5,000,000 more
the number who received

year

than

taxable

November

a

Philadelphia from 2,879 establish¬

expanded
2%- in December. Increases over
a
year ago amounted to 15% in
employment, 36% in payrolls, and

an

Working

time

in the total number of em¬

increase

of Jan. 17,

Paul

McNutt announced on Jan. 19. The
taxable

paid to these 40,-

wages

workers
amounted
to
about $41,000,000,000, nearly 25%
more
than the amount paid in
000,000

.1940.
"This increase in the number

of

employees and wages paid," said

McNutt, "shows the effect of
assignment of contracts for
materials and the resulting

Mr.

the
war

shift to defense production as
war

the

got well under way."
of a survey by the

program

A summary

Social Security Board's Bureau

of

Old-Age and Survivors Insurance,
submitted to Mr. McNutt, shows
that the effect of the defense pro¬
gram on

covered employment and

taxable wages was already appar¬
ent

during the latter part of 1940.

An

estimated

of

total

35,000,000

worked in covered jobs
during some part or all of 1940.
This figure was 1,900,000 higher
than the corresponding total for

persons

total

The

1939.

credited

the

to

taxable

,

wages

and sur¬

old-age

vivors insurance accounts of these

workers

estimated

was

at

$32,900,000,000.
"As

to

was

Administrator

be

expected," the
effect

added,, "the

tracts in

1940 showed up particu¬

of

41%.

Under date

the Reserve Bank fur¬

ther reported:

Activity

number

in

workers

of

covered

week, jobs ^during those 3 months

reports received by
Federal
Reserve
Bank
of

23%

Federal
V.

1940,

Administrator

continued larly in the increased employment
and wages reported for the last
peak of over
quarter of the year. The total

according to

ments.

in

wages

Security

December

in

1,150,000 workers, but wage dis¬
bursements increased 3% to a new

the

Federal

old-age insurance records showed
the crediting of wages during the

of the assignment of defense con¬

Pennsylvania

ployee-hours worked. The number
employed in Pennsylvania manu¬
facturing
plants
during
1941
averaged 1,100,000, or 18%_more
In compliance with Agricul- than in the preceding year; the
of
wage
disbursements
ture's wartime production goals, volume
total output of farm products is approximated $32,800,000 a week,
expected

pay¬

shoe factories showed^

at

less than the usual increase. The

1940

Employment

parity, high of about $37,000,000

averaging

...

than

Pa. Factory

...

Commenting

to

likely-

greater

.

not
changed our
for
agricultural, commodity
LendLease operations," said Mr. Hen¬
drickson,
"We
are ' continuing
heavy purchases to make available
the vital supply of food for Eng¬

1942 over the 1941
although the increase
from present levels may not be
great. The general level of all
commodity prices also is expected
to
be
substantially
higher in 1942 than the average
for 1941, with the rise in whole¬
sale prices of agricultural prod¬
average,

*

.Pacific has
basic program

for farm

products in

*

.

conditions

substantial increase

a

in the over-all demand

«

...

these

in

changes
should be

prospective

the

of

effect

net

The

commodities.

agricultural
■

year

'

formerly

some

also
/

compared

Residential

\ last

products
imported,
will add to the demand for

tion. of domestic farm

28%

with 86 for that ending Septembuilding contracts
Agricultural
commodities de¬
reached a total of $1,- livered to the British Government >-ber, 1940; farm income was 81
"•
compared with 70.5 but this ad¬
953.801,000, largest since 1928, and for Lend-Lease shipment totaled
vantage was partly offset by a
22% greater than the 1940 figure. more than 2,650,000,000 pounds up
rise in farm costs from 82 to
Single-family
houses
increased to Dec. 1,' 1941, the Department
89.5, the largest single factor in
37% in number and 33% in total of Agriculture said on Jan. 18.
which was a higher farm wage
cost over 1940; two-family houses Total cost of these commodities,
scale.-.?
doubled in number and total cost; delivered at shipping points since
I multiple dwellings slipped back¬ operations started last April, was
Farm income for the three
ward to the extent of a 29% de- about $300,000,000.
months ending September
was
crease in dollar volume and a 24%
Deliveries for shipment during
only slightly higher than for the
decrease in new family units, as November, as reported by Roy F,
corresponding period of 1940.
Hendrickson,
Administrator
of
; compared with the previous year.
Heavy
engineering
contracts Agricultural Marketing, amounted
(public works and utilities) to 450,000,000 pounds of food and Farm Product Prices To
reached a total of $1,738,002,000 other farm products, costing more
Average 25% Above 1941
compared with $1,112,373,000 in than $50,000,000. ■''•■•\. :
In 1942 prices received by farm¬
1940.
"War in the

>

farm

? Increased
Government pur'chases
of
farm
products for

'

ending September, 1941, was 91

(1926? equals

for

demand

products in 1942 compared with

-

§i power, for the twelve months

2,650,000,000 Pounds V?

in¬

This should add to the

consumer

The index of farm purchasing

,

be

of

higher than the year before.

Lend-Lease

will

goods

supplies
creased.

•

-

...

ments

pur¬

higher in 1942 than the

no

"

buildings, construction have channeled the
coupled with.; a 48% increase in industry's capacity into its war
job and rmm^red it to meet the
'^commercial building and with a
task assigned to it."
very moderate increase in public

for

available

it will be even

.

manufacturing

except leather, where wage

For some groups
less than in 1941.

'

,

result of

the net

this and

present level.
-

-

"

public

seasonal

expectations in all major lines

chase of commodities and serv¬

.

♦

the

to

bonds

consumers

small

a

most spectacular increase$
—
L1, civilian supply can be seen in
place in the building of new and repairs.. Seventy-five to 80%
of-this year's total volume will be ;;the decline in automobile sup-'manufacturing plant capacity, for
«
:
plies.;: As already stated, a fall
construction,
quite widely
which contracts in 1941 reached war
in the output of civilian goods
the record-breaking total of $1,-i distributed throughout the counis recorded in the iron and steel
181,523,000, a figure that excludes try? Being thus-called upon- to
,/ • and
the
non-ferrous
metal
all * processing
machinery.
This produce greatly expanded facili¬
«groups
(mainly electrical sup¬
was
more-than two and a half ties for :>Armyj, Navy, Air Force,
plies and equipment), v
.
,
times the 1940 volume of $442,- war production and. war housing,
construction becomes in 1942 one
The Canadian wage payroll
»424,000, and exceeded greatly the
of the country's leading war in¬
for
November was
186
(1937
previous record year 1920, which
dustries. During- recent months,
v»'equals 100) compared with 189
had, at much higher cost levels
priority rulings and
for October and 145 for Novemthan are currently prevalent, a successive
non-defense
ber,
1940. > The decline
total of $635,1-38,000. This increase orders.; curtailing
this
The

a

much

not

make the gain even smaller

may

,

but

defense

and

:

rose

took

duced

to

increased money

paper

'

;i building
total of $2,315,671,000,
; which
was
79% more than the

the

over

Increased sales

than 5%.

more

but
newsprint
fell, thereby slightly reducing
the
activity ; of the pulp ana
products

Greatest Ja < 13 Years <

buildings, pro*
non-residential

of

power

1942

1941

may
the

in

increase

net

purchasing

money

taxes

individuals

to

the

hold

workers

at the beginning of

were

applying

1941.

greater than

15%

over

in 1941, and

they

in

than

industrial

of

incomes

than

miscellaneous

ured up to or exceeded

a

The national income

*

institutional

$11,-

timated increase in income.

may

1-.,

.1 and

at

goods and services are expected
to rise, offsetting in part the es¬

*

in

when

1941,

estimated

was

600,000., At the same time, costs
that farmers must pay out for

of factory

? .paper paper group as a whole,
The decline in the wood prod<
For the first time since 1928, building and eng'neering contracts ,;>_ucts J>FQUp ;was mainly caused
awarded last year in the 37 eastern states topped the six-billion ;,rby the seasonal closing of some
sawmills.
dollar mark. The 1941 total for those states, as compiled by F. W.
The. automotive group as a
; Dodge Corporation from its daily field reports, and issued Jan. .22,
whole rose owing to the in¬
was $6,007,474,000, compared with $4,003,957,000 in 1940, the previous
crease
in
armoured
vehicles,
record year of the post-depression period.
"
■

I $41/Construction

•

$2,000,-

'

2,682,708,769
107,632,528
260,296,734

least

at

with

compared

income

the

435

278,762,063

of

000,000 in farm income this year

on

■2,518,275,856
329,563,562
?

increase

an

put.' Knitted goods rose slight¬
ly, but all other articles of and
materials for clothing fell, espe¬

114,735,917

higher prices for

larger output probably will be

a

all categories Ox ^oodstuffs show
either a lower or a steady out-

?

1941.

above

prepared

some

shipment.
influence of these

expected to average about 25%

I

■

pur¬

factors, farm product prices are
-

of meats
cereals,
which;rose- slightly in volume,

342

45.9
349*

goes

Government

the

Under

With' the1 exception

408

429

announcement

expia.n:

ana-

464*

1,067,224,593 65,839,552
427,462,771 :

A

v

of

because

chases for lend-lease

have

yet

partly

continued

reached a
point to counterbalance both the
seasonal and the incipient war¬
time decline in civilian goods.
As
it is, the December index was 22%
higher than the year before.
Mr.
hardly

can

Spindle Hrs. for Dec.

will focus

food as the output of
civilian manufactured goods de¬
on

output of war supplies, he added,

Active

in¬
the de¬

consumer

because

consumers

sharply

•

Anient: ;

of

mands

of Com¬
of Cana¬

Census announced on

The Bureau of the

*

high

partly

comes,

■

351

FINANCIAL CHRONICLE

COMMERCIAL &

was

1,500,000 more than the
number
employed coring Julyabout

The number

September of 1940.
workers

of

jobs

covered

increasing for

been

the

in

gain from one

had

time, but
quarter to an¬
some

other had never, been as great as

this."
The Bureau's survey

the

average

taxable

shows that
wage

per

covered worker for 1940 was $940.
This

was

nearly 7%

the average

than

more,

average

the
year

higher than

of $882 for 1939 and
5% higher than the

of-$893 for 1937. From
of $840 for 1938, a

average

of business recession, the in¬
to
1940
was
$100
per

crease

in December meas¬ worker,

or more

than 10%.

THE COMMERCIAL & FINANCIAL CHRONICLE

352

Thursday, January 22, 1942s

Trice change^: in the refined
Treasury Report More
plants wbuld field, were " limited
to
OPAAlien-Owned Materials
be built or what the construction approved upward readj ustment of
cost would total.
prices in, several Wisconsin cities; r«The Treasury Depar t m e n t
The nation's petroleum companies were called upon to increase
In making the. recommendation, covered above.
:
turned over to the' Supply Prior¬
their use of railroad tank cars for movement of petroleum products
the PCO said "wherever, possible, U. S. Gasoline (Above 65 Octane), Tank ities and Allocation Board on Jan.
from producing fields to both coasts this week, Ralph K. Da vies,
Car Lots, F. O. B. Refinery
private capital should do the job
15 a second inventory of foreignDeputy Petroleum Coordinator, making his request in Washington
New York—
but time is so precious, and the
owned materials and equipment
against a background of Naval announcements of further sinkings of
Socony-Vac.
$.081
need
for
aviation
available in the United States to
gasoline sg Tide Water Oil—
.09
American and United Nation tankers off the East Coast of the United
great, that .some Government con¬ Texas
v ■
.086
supplement the $200,000,000 list
States.
,086
struction is imperative."
Defense y Shell Eastern
released Jan. 2, bringing the total
Three tankers, with many lives ^
Other Cities—
Supplies Corp. contracted to pur¬
inventory amount to almost $400,Chicago
.06-.06^
lost, was the toll enacted by ter explaining its requests for chase all of the
high test aviation Gulf Coast
.06-.06
000,000, much of which is needed
stabilization.
The
OPA
enemy submarines operating off price,
2
gasoline produced by Standard Oil Oklahoma
.4
.06-.06% for war
production.
the Atlantic Seaboard during the already had "requested" the in¬
Co.
of
New
y Super.
Jersey,
Magnolia
"When the final figures on this
past week with a fourth escaping dustry not to advance crude oil Petroleum
Co., Texas Co. (at three Kerosene, 41-43 Water White, Tank Cai
censusbecome
both the shells and torpedoes of prices above the Oct. 1 level, or
available,
the
F. O. B. Refinery
refineries), and 1,300 parrels daily
Division of Foreign Funds Con¬
the attacking wolf of the sea to prices
of
petroleum
products
New York (Bayonne)
from Cities Service Corp.
$.053
above the Nov. 7 levels.
trol of the Treasury Department
make port safely although with
Baltimore
22—
.052;
There were no crude oil price
will have placed at the disposal of
Organization of a national con¬
crew
casualties.
In making his
Philadelphia
—.0521
North Texas
:
C .04
ference of petroleum regulatory changes posted this week.
the War Production Board a list
request, Mr. Davies said "Tank¬
New Orleans
s—
4.25-4.626
Prices of Typical Crude per
of
ers have been sunk on both coasts. agencies to provide "for the full¬
foreign-held
materials
and
Tulsa
.04.%-.04-%
Barrel At Wells
Others have had to be assigned est cooperation between the Fed¬
equipment valued at more than
Fuel 011, F. O. B. Refinery or Terminal
eral
Government
and
the
oilto military Service.
(All gravities where A. P. I.
$700,000,000," Secretary MorgenOcean hauls
N. Y.
(Harbor) unker
$1.33
thau said.
are now
degrees are not shown)
complicated by obvious producing States in the work of
Diesel
2.16
This large sum will represent
Savannah, Bunker C—_
1.3C
hazards.
This means that over¬ petroleum coordination" was an¬ Bradford, Pa.
$2.75
Philadelphia, Bunker C
1.36
the value of all foreign-held ma¬
land movement has became more nounced last week-end in Wash¬ Corning, Pa.
1.33 Gulf Coast
.86
1.22 Halifax
ington by Petroleum Coordinator Eastern Illinois
terials
and
important than ever."
equipment
in
the
1.7C
ernment.

Petroleum And Its Products

Mr. Jokes' office refused

to disclose where the

,

.

.

—

—

____—

—T

,

—

—

—

—

—

—

The conference will in¬
the Ickes.
East Coast last year saw the in¬ clude members representing the
stallation of additional loading and Interstate Oil Compact Commis¬
unloading racks to handle the sion as well as those oil-producing
having
official
agencies
increased volume of oil coming States
production of oil and
to Eastern refineries by railroad handling
One of the main problems
tank
car
and
these
expanded gas.
The Summer

"shortage"

on

befqre the new group will be that
tively
simple
to
increase rail of expanding production of high
movements of crude at the pres¬ grade crude needed for high test
facilities

ent

will

time.

make

With

it

compara¬

tanker

move¬

ments

hampered, movements by
rail, although increasing transpor¬
tation costs, will be ample for cur¬
rent needs, it is felt.
Stocks of
fuel oils and gasoline are at ade¬
quate working levels along the
Atlantic Seaboard currently.
The Office of the Petroleum Co¬
also

Basin

1.37
Gas, Oil,

Mid-Contin't, Okla., 40 and
above

N.

1.25

Smackover, Heavy
Rodessa, Ark., 40 and above
East Texas, Texas, 40 and
above

0.83

war

service.

It will be

Hills,

37.9

and
1.29

i_

over

develops at this time of the year.
Even the placing of tires under
Federal rationing control has not

brought any weakness in gasoline
prices although time may alter
■

remem¬

.

industry subcommittees to "carry ceiling on crude oil prices, the
into effect the sale, exchange or
Tpxas Railroad Commission has
loan of petroleum products among provided for sharply higher allow¬
marketers"
where
new
necessary
to ables for
wells,
effective
meet needs of military forces, of Feb. 1.
Formerly, wells less than
war
industries
and
all
civilian 1,000 feet were allowed 15 barrels
requirements."
daily for four months, and those
The
Petroleum
Coordinator's 1,000
to 2,000 feet deep were
office also issued ratings provided allowed 30 barrels.
The period
for in preference order P-98, an¬ was lifted to six months for all
nounced previously by the Office wells,
and
the
first
bracket
of Production Management, gov¬ raised to 40 barrels, the second
The scale of per¬
erning
materials
for
repair, to 80 barrels.
maintenance' and

quirements

the

of

operating re¬
approximate

half-million

industry.
with

operators in the oil
Mr. Davies said that,

certain

prefer¬
follows, in gen¬
eral, the form worked out by the
Office of Production Management
in granting blanket priority rat¬
ings under preference order P-100.
Both operators and suppliers are
ence

order

exceptions,

P-98

covered in the

new

order.

The Office of Production Man¬

agement acted this week to tighten
its control of the petroleum indus¬

try, issuing orders banning
drilling or natural gas wells
less there has been

of
un¬

year,

a

gallon at the turn of the

against

earlier

and

18.07

cents a

19.99 cents

on

year
Dec. 1,

1941.
The letter

discussing crude and

refined

products
prices,
sent
throughout the industry this week

D

—

.03 ^

.4.
were

oil

crude

no

price

will

nation

in

of

be

its

Treasury

value

defense

Millions of dollars worth of vital

defense

materials

which

might

.Bridge Authorizations
to
on

suggested

Roosevelt

Congress in a special message
Jan. 14 a simplification of pro¬

cedure for handling

private claim
legislation governing

and

bills

construction

the

of

bridges

or

coast

warehouses

said.

Re Private Claims,
President

the

to

program.

from

rotted
to

coast will be placed at the disposal
of American manufacturers, it is

President Asks Change

over

navigable waters. In an effort "to

V:./;.;:;'

V4

"These materials, except for the

Treasury . Department's
census,
might never have been made
available to

the nation's

of

ef¬

war

fort," the Secretary said.

"Much

this

property was simply sit-,
around in warehouses, un¬
noticed by the owner or the ware¬

ting

houseman.

motion in the conduct of the

defense

Government," the President pro¬
posed that the executive depart¬
ments and independent establish¬
ments be authorized to adjust and
determine tort claims up to $1,000, with review by the Attorney
General of awards over $500, and

Its

significance to the

ciated."

save

that

the

Courts

United

be

States

District

given jurisdiction

over

effort

The vast

not

was

appre¬

includes not only

sum

materials of war,

but also strate¬

gic materials for

use

in

the

na¬

tion's domestic economy which is
now more than
ever feeling
the

inroads of
terials

which

industry. The ma¬
only those

war

includenot

manufacturers

war

are now

claims of this nature up to

$7,500,
seeking
but
also
foreign-held
right of appeal to the Court materials which
may alleviate civ¬
Claims.
Mr. Roosevelt ques¬
ilian
shortages in the
coming

with
of

a

tioned the wisdom of the present

claim

in
enacting
private
bills, pointing out that more

months of

procedure

than 2,000 are introduced to each

Congress of which less than 20%

war.

The first
to

in

.

inventory

these

referred

was

columns

of

Jan.

15,

page 228.

become law, and that it costs al¬
most

$200

to

pass

single bill,

a

which amount sometimes exceeds

the payment involved.

He

added

Office of Price Adminis¬ that executive
departments and
served notice on retail
agencies now are authorized to
dealers in all grades of gasoline
settle
claims
up
to $1,000 for
that their prices must remain at
property loss or damage and in a
or
below
the level
ruling last few
instances claims for personal
Nov. 7 or a formal price ceiling
injury up to $500.
missive yields for deeper wells will be imposed.
While gasoline
With regard to the bridge
legis¬
sold through retail outlets was not
was increased proportionately.
lation
the
President
suggested
Curtailed output* in Texas was formally included in the list of
that, in order to save time and
affected products, the OPA said:
the major factor in a slump of
"It must be understood, however, money, Congress consider passing
208,220 barrels in
the nation's
an enabling act
delegating to the
that these prices remain substan¬
daily average flow of crude oil
Secretary of War the responsibil¬
tially at or below Nov. 7 levels."
during the week ended Jan. 17, the
ity for authorizing the construc¬
Leon
"Oil
&
Gas
Journal"
Henderson,
OPA head,
reported
tion and maintenance of bridges
Tuesday.
The drop in the Lone announced during the week that over
navigable waters in accord¬
Star State of 212,300 barrels pared readjustment of gasoliife prices in
ance with such general policy as
the flow there to 1,501,800 bar¬ Madison, Sauk City, Sun Prairie
Congress
might
prescribe.
He
rels.
States reporting higher pro¬ and Lodi, Wis., had been approved
pointed out that the War Depart¬
duction
totals included
Kansas, in order that advances from de¬
ment already is responsible for
Oklahoma and Michigan.
pressed
prices
which
resulted
approving such bridge enterprises
Dismissal of one major defend¬ from unusual competitive market¬
after
Congress authorizes them
might be made.
ant—the Barnsdall Oil Co.—and ing conditions
and
that
the
passage
of each
47 ; minor
defendants from
the The order of approval came after
bridge act "costs the taxpayers
anti-trust suit against the major an OPA investigation of the situ¬
several hundred dollars and con¬
part of the petroleum industry by ation there disclosed that bitter sumes a
large amount of time in
the Department of Justice a short competitive marketing conditions
the Congress, in the War Depart¬
time ago was disclosed in the na¬ in these areas had sent Nov. 7
ment and at the White House."
tion's
capital this week.
The prices down to the point where
In the opening part of his mes¬
American Petroleum Institute, 21 some jobbers were forced to sell
sage the President declared:
major companies and more than at actual losses on that data
tration,

,

United States which the

believes

other wise have rusted

by the

torpedoed and sunk had their
itself.
while- the National-Defense Ad¬ effect upon bunker fuel oil mar¬
Unless prices oT petroleum and visory Board studied its possible kets along the East Coast.
The
petroleum products are kept at or effect upon the defense program. Gulf Coast market is tight, with
below the "informal" ceilings re¬
The Office of the Petroleum Co¬ demand running heavy from both
quested by the * Office of Price ordinator ~ on
Tuesday
recom¬ domestic and foreign buyers, but
Administration,
action
to
put mended the construction of two the tanker situation has caused
formal ceilings into effect will be Government-owned plants for the some
backing up of storage pend¬
taken, it was disclosed this week manufacture of 100-octane avia¬ ing rearrangement of shipping
in Washington by Leon Hender¬ tion gasoline to the Defense Plant movements.
East Coast oil men
son,
OPA
Administrator.
Mr. Corp. The plants would be oper¬ have to worry about two factors:
Henderson
sent
producers, re¬ ated by the Pure Oil Co. of Chi¬ first, keeping sufficient, stocks on
finers and other factors in the cago and the Southpbrt Petroleum hand and, second, keeping inven¬
petroleum industry a lengthy let-; Co. of Kilgore, Texas, for the Gov- tories within storage limits.




$.0t
.053

.—

in

a consolidation
separate property interests
within a 40-acre area surrounding
the operation. The OPM also an¬
nounced two related regulations,
the first broadening assistance to
the industry in obtaining mate¬
rials and the second curbs on 300
The
submarine
attacks
upon
subsidiary and affiliated com¬
marketing materials and construc¬ panies remain in the case.
The coastwise shipping on the Atlantic
tion similar to those already gov¬ suit
was
filed
last
September Seaboard which saw, several tank¬
erning
the
petroleum industry after a delay of several months ers

of all

28,30

There

Pecos

cents

7 plus

1.25

Kettleman

this.

O. B. Refinery or Terminal

Tulsa

Lance

acted

F.

(Bayonne)

changes posted during the week.

The average net dealer price for
liminary meeting shortly after its
fuel
in
50
bered that the West Coast was the organization with representatives motor
major cities
first area of submarine attack on of the major American and foreign throughout the country on Jan. 1
oil companies engaged in overseas was 9.98 cents a gallon, 1.44 cents
the
American
mainland, which
\
better than at the outset of 1941
also held down tanker operations business.
there.
The recommendation is¬
Acting in an effort to stimulate and only .06-cent lower than a
earlier.
The
American
sued
by Petroleum Coordinator new oil exploration and produc¬ month
Ickes, approved by the Depart¬ tion, which has been hampered, Petroleum Institute report also
showed that consumers paid 19.91
ment of Justice, allows Northwest according to many oilmen, by the

to

Y.

Chicago,

1.20

County, Texas..—
0.95
gasoline.
Creek, Wyo—
1.12
Another new petroleum group Signal Hill, 30.9 and over—
1.2:4
The strong basic condition of
sprang
into life in" Washington
this week under the sponsorship the
nation's
gasoline
markets,
of Vice-President Wallace,
who which would have meant higher
announced the creation of a spe¬ prices were it not for Government
cial
committee
of oil
company control, is reflected in sustained
representatives "to maintain ade¬ steadiness in direct contrast to the
quate petroleum supplies for our normal easing off in prices which

aviation

during the armed forces and those of our
Allies."
The group, known as the
week
to
provide
against
any
Petroleum
Operating
shortage
of
crude
or
refined Foreign
a
central
petroleum in Oregon or Wash¬ Board, will provide
oil
ington which might develop from clearing house for foreign
The Board held a pre¬
coastwise tankers being diverted problems.
ordinator

Illinois

;

In these critical days of our
national defense effort, I feel
there should be
on

of

j oint endeavor
the part of the Congress and
the

heads

branch
divest
,

of

our

a

of the

the
minds

executive

government
as

far

as

consume

possi-

consider¬

able time and effort. We should

grant

the

responsibility

for

handling such matters to those
equipped with year-round facil¬
ities

them.

and

time

to

dispose

Forged Checks Against
Customer's Account
The

of

New

York

Appeals ruled

State

on

Jan.

Court

of

that

15

a

bank becomes legally liable when
it honors forged endorsements on

checks

against

count.

The

depositor's

a

ac¬

Court reversed, 3 to

2, an Appellate Division decision
authorizing
the
National
City
Bank and the Bankers Trust

Co.,
City, to recover
$6,740 from the Fitzgibbons Boil¬
er Co., also of New York.
In re¬
porting the decision, Associated
Press Albany advices of Jan. 15
both of New York

said:

The

contended the
negligent in cash¬
ing 11 checks totaling that sum
during January and February,
1937, on the illegal endorse¬
ment of a company employe.
company

banks

were

Writing the majority opinion,
Justice

Edward

"there is
itor

to

no

duty

R.

Finch

upon a

said

depos¬

whether

are

en¬

genuine

ascertain

dorsements

or

forged.
"The drawer is not presumed
to know and in fact seldom does

the

know

signature
of
the
The bank must, at its
peril, determine that ques -

payee.
own

tion."

to

ble of matters of lesser impor¬
tance which

Banks Liable Honoring

Chief Judge
in

Irving Lehman,
dissenting
opinion,
in

a

which

Justice

Charles

S.

Des¬

mond

concurred, said "if the
plaintiff (the boiler company)
had

used

better

methods

of

bookkeeping
arid
exercised
greater vigilance * * * the dis¬
honesty ** ♦ would have been

discovered
have

and

he

obtained the

could

checks."

not