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The
financial
Ironirk
VOL. 134.
SATURDAY,JANUARY 23 1932.
NO. 3474
is to-day no more pressing problem than that of restoring the credit of the railroads, and there is no
PUBLISHED WEEKLY
way of doing this except by putting them on a paying
Terms of Subscription—Payable in Advance
where they can at least earn their fixed charges
basis
Including Postage—
12 Mos. 6 Mos.
Within Continental United States except Alaska
$10.00
$6.00 •and also some moderate return on their share capital.
In Dominion of Canada
11.50
6.75
Other foreign countries, U. S. Possessions and territories
13.50
As indicating the tactics pursued by these labor
7.75
The following publications are also issued: For the Bank and Quotation Record and the Monthly Earnings Record the subscription price is executives, they asked the roads this week to justify
$6.00 per year each; for all the others is $5.00 per year each. Add 50 cents
to each for postage outside the United States and Canada.
the wage reduction and explain exactly why a 10%
NOTlCit.—On account of the fluctuations in the rates of exchange.
remittances for foreign subscriptions and advertisements must be made cut in wages was deemed necessary, as if these labor
In New York funds.
leaders were unaware of the fact that the traffic
COMPENDIUMS—.
MONTHLY PUBLICATIONS—
PUBLIC Umury—(semi-annually)
BANK AND QUOTATION RECORD
of the roads had gone all to pieces and their revenue
RAILWAY & NDUBTRIAL--(fOUr Et year) MONTHLY EARNINGS RECORD
STATE AND MUNICIPAL-034=1-81111j
had in like manner shrunk almost to the vanishing
Terms of Advertising
point. David B. Robertson, the head of the FireTransient display matter per agate line
45 cents
Contract and Card rates
On request men's Brotherhood and leader of the entire labor
CHICAGO OpvicEr—In charge of Fred. H. Gray, Western Representative,
delegation, said that railway labor could not accept
208 South La Salle Street, Telephone State 0613.
LONDON Ossicn--Edwards .k Smith, 1 Drapers' Gardens, London, E. C.
the argument that wages should be reduced because
WILLIAM B. DANA COMPANY, Publishers,
the cost of living was lower. He declared that labor
William Street, Corner Spruce, New York.
was unwilling to accept as arguments for wage reducPublished every Saturday morning by WILLIAM D. DANA COMPANY
President and Editor, Jacob Seibert; Business Manager William D. Riggs; tions either the claim of "inadequate return" or comTreas., William Dana Seibert; Sec.. Herbert D.Seibert. Addresses of all. Office of Co.
parisons of the cost of living. After the meeting on
Tuesday he was said in Associated Press advices
The Financial Situation.
from Chicago as having revealed the details of his
While there have been a number of developments
reply to the plea of the roads for a voluntary reducthis week which appear to be of a constructive chartion. The labor head wants to make sure, too, that
acter, not much satisfaction is to be derived from
the properties are not overvalued, a thing the Interthe wearisome way in which the negotiations for a
State Commerce Commission has been trying to do
reduction in the pay of railroad labor have been for nearly 20 years. "As
to the value of railroad propdragging along. For many months the Railway erties and the claim of
inadequate return, employees
Presidents have been doing nothing but defer to the could not accept the contentions
of the railroads, and
labor executives, in the hope that these latter, realiz- it would be well to avoid
useless argument," Mr.Robing the dire distress in which the roads find them- ertson said.
"Employees did not agree,and the Interselves, would consent to a voluntary reduction in the State Commerce
Commission did not agree with the
scale of pay. But these labor heads have done railroad
claims, concerning the value of railroad
nothing but carp, and have raised point after point
properties." All of which indicates how far afield
of objection with reference to matters having no these
labor leaders are going in 'discussing a matter
relevancy to the question at issue until a stage has
which involves nothing, or ought to involve nothing,
been reached in the discussion where it is difficult except
how to deal with the tremendous falling off
any longer to believe in the sincerity of these labor in
railroad traffic and railroad revenues.
executives. The Railroad Presidents have certainly
These labor leaders demanded that the roads proshown wonderful patience, a degree of patience, in- duce statistics.
The railroad executives, always condeed, in which the public has found it impossible to ciliatory
and obliging, undertook to furnish these
share, and it would seem that the time has now statistics.
Labor asked for the "whole picture" of
arrived for a change.
the financial difficulties of the carriers, and got
There have been a series of conferences this week, it. Daniel Willard;
President of the Baltimore &
and the usual reassuring statements have been given Ohio, answered with
statistics which, we are told,
out as to how near agreement the two sides were, but took two days to compile.
The picture, he said, was
the fact of the matter is that the week ends with of an industry rapidly losing
credit and facing adnothing more tangible to report than that the labor ditional bankruptcies
unless help arrived.
heads are still engaged in a sort of, baiting of the
The labor leaders put forth various other proRailroad Presidents, who really look foolish as they posals. They wanted
assurance that the roads would
are called before these mighty chieftains to justify stabilize employment if organized
labor should agree
their action for wanting to hold expenses down to to a wage reduction;they put
forth again their propothe limit of shrinking revenues. Clearly an end sition for a six-hour day, asked
for co-ordination of
should be brought to the persistent delay. Has not train crews and train
lengths, protection of labor
the time arrived for the Railroad Presidents to assert in railroad consolidations, and a
$1,000,000,000 issue
themselves and proceed without further 'circumlocu- for grade crossing
elimination. Each and all of these
tion to put the lower *age scales into effect? There things was clearly out of the
question, and the labor
finantial Chronicle
546
FINANCIAL CHRONICLE
[VoL. 134.
leaders, by lugging them into the controversy, fur- any cause for which they act, and,in our estimation,
nished occasion for impugning their good faith. How- it is a mistake to continue further negotiations with
ever,the roads made a dignified and convincing reply, a body of men thus represented. It is also a mistake
furnishing statistics galore, to show how the earning to arrange for a mere temporary decrease, since in
capacity of the roads had become impaired. "We that event the matter must come up afresh in a very
believe," said the Committee of Presidents, in a for- short time. Voluntary reduction is to be for merely
mal statement, "a reduction in the compensation of one year. No one who has any knowledge as to
all persons engaged in railway service is an essential the facts supposes that within the brief space of 12
step towards enabling the railways to improve their months the railroad system of the country can be so
credit, increase their employment and purchases, rehabilitated that the roads will again be able to pay
and thereby contribute toward a general revival of the wages which they now find themselves utterly
unable to pay. With the reduction limited to a single
business."
As to the necessity of the saving of approximately year, uncertainty as to its continuance will be an
$215,000,000, which would result from the pay reduc- unsettling factor from the very start, and certainly
tion, Mr.Willard said 72 railways failed to earn their the labor executives will fight against its continufixed charges last year, and that unless the net earn- ance as hard as they are now fighting against having
ings could be increased this year the number would the wage reduction made at all. And the fact that
be "much larger." "The railway companies failing .the question must in that event remain an open one
to earn their fixed charges are plainly in danger of would militate against that restoration of railroad
becoming bankrupt," he said. "In addition, in 1932 credit which is so essential for the welfare of the
there will become due and payable the principal of roads and without which they will not be able to
$405,000,000 of railroad mortgage bonds, equipment serve the public in the way demanded for the best
trust obligations and other loans." These obliga- interests of the whole community.
The railroads will need large new supplies of capitions must be satisfied to avoid bankruptcy." Mr.
Willard put the gross earnings of the roads for 1931 tal, and they cannot get these supplies until they are
at $4,259,000,000 against $5,342,957,046 for the cal- put upon a permanent paying basis. A balance upon
the right side of the account for a single year, or even
endar year 1930 and $6,360,302,775 in 1929.
Let the reader ponder well what these figures for two or three years, will not suffice for the purmean. They show that as compared with two years pose. There must be assurance that they can permaago the gross revenues of the roads suffered a reduc- nently earn a return upon the money invested in the
tion in amount of over $2,000,000,000. This alone properties. There should therefore be no further
ought to be sufficient to convince labor that the roads temporizing in the matter. There must be a permaare in need. With traffic so seriously reduced the nent saving in labor costs, and it should be of sufoperating forces were necessarily greatly curtailed, ficient amount to be ample for the purpose. It does
since there was no work for them to do, and, accord- not now seem that a 10% saving will be ample, and
ingly, the average number of employees fell from hence all interesti will be best served if that doubt
1,686,769 in 1929 to 1,285,000 in 1931. And this is also is removed. It is certainty that is now dethe unemployment situation, the labor leaders ask manded, and in order that a general revival of busithe railroads to stabilize, as if it were in their power ness shall be assured the railroads cannot afford to
to do anything of the kind. As to the net results of take any chances in the matter.
operations, the net railway operating income for
For the present the railroads would appear to have
1931 was only $534,000,000 against $1,274,595,403
in 1929. In other words, the 1931 net (out of which more certain prospects of immediate relief from the
fixed charges have to be met) was $740,000,000 less organization of the Reconstruction Finance Corporathan the amount two years ago. And yet the labor ex- tion which the present week has been pushed through
ecutives ask the roads to justify a wage reduction and Congress with great speed. It is a gigantic propoat the same time insist upon the stabilization of em- sition, with provision for a capital of $500,000,040,
to be subscribed by the United States Government,
ployment. What logic; what puerile claims!
Yet in all this Mr. Robertson has simply been pur- and with authority to issue also $1,500,000,000 of
suing the same course and indulging in the same non- debentures. It is very broad and comprehensive,
sensical talk that he did last November when he too, in its scope and application. Under its prooriginally rejected the proposition of the roads for a visions it would seem possible to extend aid and relief
reduction in wages. It will be recalled that this in every direction. The title describes it as"An Act
labor leader at that time asserted that the roads to provide emergency financing facilities for finanwere engaged in an attempt "to increase the present cial institutions, to aid in financing agriculture,comwages of capital," and then proceeded as follows: merce and industry, and for other purposes." For
"You are asking that the employed workers take 10% instance, under Section 5 of the Act the Corporation
from their earnings to support idle capital. We sub- is authorized to aid "in financing agriculture, commit that the first duty of the employed workers, after merce and industry, including facilitating the extheir duty to their dependents, is an obligation to portation of agricultural and other products, and
their fellow employees who are denied an opportunity empowered to make loans, upon such terms and conof employment." Another similar statement then ditions not inconsistent with this Act as it may demade was to the following effect: "We have been termine, to any bank, savings bank, trust company,
asked to contribute, not to the relief of our fellow building and loan association, insurance company,
employees, but to the relief of those who have no mortgage loan company, credit union, Federal Land
claim upon our charity. We submit that impartial Bank,Joint Stock Land Bank,Federal Intermediate
public opinion will support our answer that labor Credit Bank, agricultural credit corporation, livecannot be called Upon to pay a dole to idle capital." stock credit corporation, organized under the laws
Nothing is to be expected from men who talk and of any State, or of the United States, including loans
act in this insensate fashion. They certainly injure secured by the assets of any bank that is closed, or-
JAN. 23 1932.]
FINANCIAL CHRONICLE
547
We are glad to know, too, that the Corporation
in process of liquidation, to aid in the reorganization
or liquidation of such banks, upon application of the securities are not to find lodgment in the vaults of
receiver or liquidating agent of such bank, and any the Federal Reserve banks, Senator !Carter Glass,
receiver of any National bank is hereby authorized to of Virginia, that valiant defender of the integrity
contract for such loans and to pledge any assets of and soundness of our Federal Reserve System, along
the bank for securing the same: Provided, that not with Senator Robert J. Bulkley, of Ohio, having won
more than $300,000,000 shall be used for the relief their fight to make the Corporation securities ineliof banks that are closed or in the process of gible for rediscount at the Federal Reserve banks.
liquidation."
The Corporation's obligations are not to be subject
In order to aid the railroads the Corporation, to rediscount or purchase by the Federal Reserve
under the same section of the Act,"may make loans System. They will, however, be eligible for purchase
at any time prior to the expiration of one year from and sale by the United States Treasury.
the date of the enactment hereof; and the President
may from time to time postpone such date of expiraThere is reason for gratification, too, in the fact
tion for such additional period or periods as he may that through the aid of the various banking houses
deem necessary, not to exceed two years from the the crisis in the financial affairs of the city of New
date of the enactment hereof. Within the foregoing York, which appeared to be reaching an acute stage
limitations of this section, the Corporation may also, a week ago, has been readily surmounted. The
upon the approval of the Inter-State Commerce Com- trouble arose out of the fact that the city has in more
mission, make loans to aid in the temporary recent times been constantly adding Ito the volume
financing of railroads and railways engaged in inter. of its indebtedness,and, unfortunately, was carrying
State commerce, to railroads and railways in process a huge amount of it in the form of short-term obligaof construction, and to receivers of such railroads tions. These finally reached such a large sum that
and railways, when in the opinion of the Board of in the present unsettled condition of the municipal
Directors of the Corporation such railroads or rail- bond market difficulty was encountered in effecting
ways are unable to obtain funds upon reasonable the necessary renewals, as they came with recurring
terms through banking channels or from the general frequency. All matters have now been satisfactorily
public, and the Corporation will be adequately arranged for a considerable time to come,and embarsecured:
rassment for the future avoided. As part of the
"Provided that no fee or commission shall be paid arrangement the group of bankers, one of the largest
by any applicant for a loan under the provisions ever organized, yesterday offered $100,000,
000 City
hereof in connection with any such application or of New York special corporat
e stock notes, dated
any loan made or to be made hereunder, and the Jan. 25 1932, with $25,000,000 principal
amount maagreement to pay or payment of any such fee or turing Jan. 25 1935, $25,000,000 maturing
Jan. 25
commission shall be unlawful.
1936, and $50,000,000 maturing Jan. 25 1937. The
"Any such railroad may obligate itself in such whole issue (which was authorized under
a special
form as shall be prescribed and otherwise comply Act of the New York Legislature the present
week
with the requirements of the Inter-State Commerce so as to carry through the agreement
entered into
Commission and the Corporation with respect to the with the bankers) was quickly oversubscribed.
It
deposit or assignment of security hereunder, without is rather a blow to the city's pride to have
to pay 6%
the authorization or approval of any authority, State interest, but it was absolutely necessar
y to guard
or Federal,and without compliance with any require- against any slip-up in the sale of the bonds,
and in
ment, State or Federal, as to notification, other than the present condition of the municipal
bond market
such as may be imposed by the Inter-State Commerce and the unfortunate state of the city's
finances, the
Commission and the Corporation under the pro- terms of the offering had to
be made exceptionally
visions of this section."
attractive in order to insure in advance the unqualiThe Corporation is given a life of 10 years, and the fied success of the offering.
City pride had to be
railroads seem likely to get quickest relief under the left out of considera
tion for the time being.
measure, since their situation is so serious and the
Incidentally much good will result from the diffiprocess of obtaining loans is so simple in that case. culty in which
the city became temporarily involved.
But it is always to be remembered that this means The city has
been very prodigal in its financial adborrowing, which will be very helpful right now,
but ministration, and it was time that a halt be called.
that the real need is of larger revenues and lower This has now
been done. The group of bankers who
costs, so that the roads will be relieved of the neces- came to the
rescue of the city saw to it that assursity of such borrowing and be able to earn their fixed ances were given that
a policy of retrenchment and
charges out of their own operations.
economy in the conduct of the city administration be
The thing always to be feared in the case of a body pursued for the future.
As a consequence, the credit
with such extensive powers is that these powers will of the city ought
to be speedily restored, while at
be abused. On that point, fortunately, reassurance the same time the
burden of the taxpayers will be
against anything of the kind is furnished by the selec- lightened
.
tions President Hoover has made of those who are
to have charge of the management of the affairs of
Another favorable event the present week has been
the Corporation. General Charles G. Dawes is to be the passage by the Legislatu
re at Albany of the
President of the Corporation, and Eugene Meyer, Campbell bill eliminati
ng 1931 earnings in determinGovernor of the Federal Reserve Board, is to be ing railroad bonds
as legal investments for savings
Chairman of the Board of the new Corporation. banks. The measure
was urged by the Cheney BankThese are both capable men,'tested by experience in ing Commission as
an emergency measure, and is
the identical class of work which the new Corpora- intended to relieve the
distress which the banks who
tion will be called upon to perform, and no better have such large
investments in railroad bonds have
and wiser choice could probably have been made.
experienced. Railroad securities not only
suffered
548
FINANCIAL CHRONICLE
enormous depreciation during the past year, but the
earnings of the roads were so heavily reduced that on
the basis of the requirements of the law many of the
securities of the railroads would no longer be eligible
for savings bank investment if the provisions of the
law applied to the 1931 income as well as to the
income of previous years. Hence the elimination of
the 1931 figures in applying the test of the law.
[Von. 134.
Reserve institutions as a whole. The amount for the
12 institutions is $751,468,000 this week and was
$751,575,000 last week.
"Other securities," consisting of Federal Intermediate Credit Bank debentures, have recently
been slowly growing, and this item stands at
$36,846,000 the present week against $29,732,000
last week. Altogether the total of bills and securities, which constitutes a measure of the volume
of Reserve credit outstanding, is a little smaller the
present week at $1,795,341,000 as against $1,813,449,000 last week. Gold reserves, notwithstanding
the heavy outflow of the metal, have slightly increased, rising from $3,001,836,000 Jan. 13 to $3,005,914,000 Jan. 20. The volume of Federal Reserve
notes in circulation is also slightly larger, having
risen from $2,635,766,000 to $2,642,140,000. The
ratio of total reserves to deposit and Federal Reserve
note liabilities combined stands a little higher, having moved up from 66.9% to 67.3%. It remains only
to say that foreign bank deposits in the care of the
Reserve banks are also slightly larger, standing at
$81,830,000 the present week against $75,129,000 last
week.
The returns of the Federal Reserve banks the present week show surprisingly little change, considering the action of the New York Federal Reserve Bank
last week in lowering its buying rate for acceptances
and the talk so freely indulged in within recent
periods, more particularly in Europe, to the effect
that by reason of the various emergency measures
providing for the expenditures of large amounts of
money, to which Congressional approval is being
given (the $2,000,000,000 Reconstruction Finance
Corporation being one of these), the country was
embarking upon headlong inflation. Gold withdrawals from the Federal Reserve banks have recently
again been heavy, and advices from the other side
have been to the effect that owing to this fear of
inflation, several of the European Central Banks
There is little of an encouraging nature in the
were withdrawing their balances held here. For the
er foreign trade statement. Merchandise exDecemb
the
from
exports
the
week ending Wednesday night
the United States were again reduced in
United States reached no less than $36,363,000, $24,- ports from
compared with the preceding month, and
269,000 going to France, $8,233,000 to Belgium, value as
little higher than in November,
$3,260,000 to England,$346,000 to Switzerland, and imports, while a
point for many years, are below
low
the
was
which
$255,000 to Holland. But $16,100,000 of this seems
month in 1931 excepting only
other
any
of
,
those
earmark
to have been gold previously held under
value of exports for the final month
since that amount of'the metal was released from ear- November. The
0,000, which, with the excepmark during the week. At the same time, also, of last year was $184,00
September, was under that
$8,307,000 of gold arrivals were reported at New tion of July, August and
1931. Furthermore, the
in
month
York, mainly from Argentina and Colombia. Yester- of any other
d with $274,856,000 for
compare
month
last
day $20,474,000 more gold was taken for export to figures
n for the month just
reductio
the
1930,
er
Decemb
France and $230,000 for export to Switzerland, while
33.1%. Imports in
or
,000,
$90,856
being
closed
.
$12,000,200 was released from earmark
$153,000,000. For
only
to
d
amounte
er
Decemb
changes
the
said,
In view of all this, as already
was $208,636,imports
of
value
the
shown for the week in Wednesday's returns of the December 1930
preceding year
the
from
month
last
decline
Federal Reserve banks are surprisingly slight. In 000, the
The
ratio of loss
26.4%.
or
,000
$55,000
being
the first place the lowering of the buying rate for thus
preceding
of
the
figures
the
from
r,
Decembe
acceptances has proved ineffective in securing new for
by
the
shown
than
less
report
at
somewh
was
year,
appears
supplies of bills for the Reserve banks. This
just
The
stated
fact
1931.
of
months
twelve
the
for
12
Reserve
the
of
s
from the fact that bill holding
it
e
n,
were
favorabl
conditio
a
ed
consider
be
might
rewere
further
ng,
increasi
institutions, instead of
imand
both
exports
that
fact
the further
duced during the week from $213,801,000 to $188,- not for
merchandise in December 1930 were also
of
ports
the
that
noted
be
may
it
tically
Parenthe
041,000.
below the amount usually returned in
ably
consider
acceptances held on behalf of foreign banks remained
statement. The decline for December
er
Decemb
the
virtually unchanged, the amount last week having
in
consequence, somewhat less than it
was,
1931
$285,been $285,141,000 and the present week being
have been.
might
e
otherwis
Reserve
12
299,000. The discount holdings of the
1931, merchandise exports were
year
the
For
the
as
far
as
banks also show only a minor change,
against $3,843,181,000 for
183,000
at
$2,424,
ed,
valued
concern
are
whole
12 Reserve institutions as a
year, a reduction last year of $1,418,the total this week at $818,986,000 comparing with the preceding
Merchandise imports in 1931
$818,341,000 last week. Here, however, it must be 998,000 or 36.9%.
compared with $3,060,observed again that while the total of the discounts amounted to $2,090,107,000
for the past year being
shown
n
remained virtually unchanged, the distribution of 908,000, the reductio
dise exports for
Merchan
31.7%.
or
the holdings among the different Reserve institutions $970,801,000
since 1914 and
in
value
smallest
the
were
has nevertheless altered somewhat, as appears from the year
1915.
since
the fact that at the Federal Reserve Bank of New imports
The balance of trade in December on the merYork the discount holdings fell during the week from
ed on the export side,
$191,210,000 to $167,556,000. It follows that with chandise movement continu
$31,000,the holdings of the New York Reserve Bank reduced exports for the month exceeding imports by
exports
of
the
value
excess
in amount of $24,000,000, there must have been an 000—for the year previous
the
For
,000.
er
was
$66,220
Decemb
increase to the same amount at the Reserve banks over imports in
imof
excess
in
were
1931,
exports
of
year
outside of New York. Holdings of United States calendar
for the preceding
Government securities show inconsequential changes ports by $334,076,000, whereas
export side.
both at the New York Reserve Bank and for the 12 year the amount was $782,273,000 on the
JAN. 23 1932.]
FINANCIAL CHRONICLE
549
Many years have passed since the trade balance has were inclined to recede at the half-day session last
been so low as it was in 1931—not since 1910 in fact. Saturday and again in the dealings on Mondoy. On
Cotton exports in December contributed considerably Tuesday there was a slight rally about the middle
to the movement abroad for that month, as it did in of the day, but it did not hold at the close. On
November; also, in October, although the increase Wednesday and Thursday the trend was upward,
for the month last mentioned was not as large as it but on Friday the market again turned weak. The
was in November and December. In December, railroad list displayed strength at times, but the
cotton exported from the United States was not only lack of progress in the conferences held at Chicago
larger than in that month of the preceding year, but between the railway executives and the labor executhe value was larger also than it was in 1930. Quite tives, with reference to lowering wage scales, proved
a period has passed since cotton exports have been a damper that held advances in check. There have
higher in value than in the same time in the pre- been further dividend reductions and omissions.
ceding year. On the other hand, the decrease in the Among the companies that have lapsed altogether in
value of cotton exports for many recent months has their dividend declarations may be mentioned Warbeen very heavy. The reversal of this condition in ner Bros. Pictures in the guar. div. on the $3.85
December is therefore worthy of note.
cumul. pref. stock; the Revere Copper & Brass, Inc.,
Last month's cotton exports amounted to 1,195,on the 7% cumul. pref.; the Gruen Watch Co. of
258 bales, the largest movement in any month since Cincinnati on the 7% cumul. pref. stock, and the
October 1929—in December 1930 cotton exports American Commonwealth Power Corp. in the quarwere 778,973 bales. The value of cotton exports terly dividends on its various issues of stock. The
last month was $47,304,000 against 7,220,000 in Ingersoll Rand Co.reduced the quar. div. on common
the preceding December. For the calendar year of from $1 a share to 75c.; Oppenheim, Collins & Co.,
1931 cotton exports show a small gain over the Inc., reduced the quar. div. on common from 50c. a
preceding year-6,862,000 bales comparing with share to 25c., after having previously reduced from
6,487,000 bales in 1930. The increase last year 75c. to 50c. a share. A. Stein & Co. reduced the quar.
was 375,490 bales, or 5.8%. Contrariwise, values div. on common from 40c. a share to 25c.; Houston
last year for cotton were much lower than in 1930. Oil Co. of Texas reduced the semi-annual div. on the
Cotton exports for the year just closed were valued
1
2c. a
cumul. pref. stock from 75c. a share to 37/
at $323,949,200 against $493,876,000 for 1930, a de- share, and the H. C. Bohack Co. reduced the quar.
crease in 1931 of $169,927,000 or 34.4%. This heavy div. on common from $1 a share to 62/
1
2c. a share.
loss in value appears, in the face of an increase of The Freeport Texas Co. reduced the quar. div. on
nearly 6% in quantity shipped abroad and reflects common from 75c. a share to 50c. The call loan rate
the large decline that has occurred in cotton prices on
the Stock Exchange again remained unchanged
. during this period. There are many other commodi2%.
at 21/
ties, all of those entering into the foreign trade of
Trading has been quite light. At the half-day sesthe United States probably, which show something sion
on Saturday last the sales on the New York
of the same conditions as appears for
cotton—at Stock Exchange were 733,315 shares; on Monday
least the heavy decline in the value of the exports
or they were 1,383,440 shares; on Tuesday, 1,090,025
imports of most of them, does not measure anything shares; on Wednesday, 1,211,715 shares; on Thurslike an equal loss in the quantity moved.
day,1,240,168 shares, and on Friday,1,561,404 shares.
The gold movement in December again became On the New York Curb Exchange the sales last Satursomewhat erratic, especially in exports. The latter day were 137,115 shares; on Monday,240,130 shares;
increased again quite largely, and while gold imports on Tuesday, 159,316 shares; on Wednesday, 206,980
last month continued heavy, the amount was less shares; on Thursday, 219,160 shares, and on Friday,
than in November. Gold exports last month were 244,330 shares.
$32,651,000 and imports $89.509,000. A year ago
As compared with Friday of last week, prices are
in December exports were only $36,000 and imports mostly lower. General Electric closed yesterday at
$32,778,000. For the year 1931, gold exports 21 against 255
/
8 on Friday of last week; North Amer.
amounted to $466,794,000 and imports $612,119,- lean at 33% against 361/
4; Pacific Gas & Elec. at
000, the excess of imports being $145,325,000.
Standard
Gas & Elec. at 29
8 against 35%;
337
/
Except for the heavy exports of $398,604,000 in against 32%; Consolidated Gas of N. Y. at 601/
4
gold in October, the export movement for the year against 64y8; Columbia Gas & Elec. at 13/
1
2 against
just closed would not have been important. In 143
/
4; Brooklyn Union Gas at 77 against 81; Elec.
1930, gold exports were $115,967,000 and imports Power & Light at 111/2 against 13/
1
2; Public Service
$396,054,000, the latter also exceeding exports, the of N. J. at 541/
8 against 571/4; International Harexcess being $280,087,000. For the past three years vester at 25 against 281/
4; J. I. Case Threshing Maimports of gold have been larger than exports. For chine at 38/
411
/
8; Sears, Roebuck & Co. at
against
1
2
the ten additional years back to 1920, imports have 331/
2 against 35%; Montgomery Ward & Co. at 8%
been in excess of exports seven years, while the against 97
/8; Safe1
2 against 437
/8; Woolworth at 40/
reverse condition has been the case only three years, way Stores at 46% against 48; Western Union Teleexports of gold being larger. The silver movement graph at 40/
1
2 against 43½; American Tel. & Tel. at
in December continued very small. For the year 117% against 122%; Int. Tel. & Tel. at 9% against
1931, silver exports were $26,485,000 and imports 105
/
8; American Can at 601/
8 against 64%; United
$28,664,000. In 1930 silver exports amounted to States Industrial Alcohol at 251/
4 against 29; Com$54,157,000 and imports to $42,761,000.
mercial Solvents at 8/
1
2; Shattuck & Co.
1
2 against 9/
at 10 against 10, and Corn Products at 42 against 44.
There is very little to be said about the stock
Allied Chemical & Dye closed yesterday at 69
market the present week. Dealings have been light against 73/
1
2 on Friday of last week; E. I. dzi. Pont
and price changes rather irregular, with the fluctua. de Nemours at 52 against 561%;National CasL Zbifea
tions narrow except in a few separate issues. Prices ter at 91% against 111%; International Nickel
at 8134
•
550
FINANCIAL CHRONICLE
[VoL. 134.
Price movements on the -Stock Exchanges in Lon4; Timken Roller Bearing at 19% against
against 83
somewhat irregular this week,
22; Mack Trucks at 14 against 1534;Yellow Truck & don and Paris were
toward slightly lower levels.
trend
main
the
with
8
/
8 against 4%; Johns-Manville at 197
Coach at 41/
political developments was
g
regardin
nty
Uncertai
against
8; Gillette Safety Razor at 1214
against 231/
with the reparations and
markets,
both
in
apparent
25%;
against
8; National Dairy Products at 24
131/
nd. The Paris Bourse
foregrou
8 against814; Texas Gulf debts discussion in the
/
Associated Dry Goods at 67
ents, as they
the
developm
to
sensitive
8; American & Foreign was especially
Sulphur at 23% against 251/
in French
factor
g
disturbin
a
prove
to
likely
Power at 7% against 8%; General American Tank are
g
elections.
impendin
the
to
owing
politics
domestic
s; United Gas Improvement
Car at 30% against 321/
by the
swayed
was
likewise
market
London
the
But
40%
8; National Biscuit at
at 18% against 201/
g
regardin
ns
8; Conti- disappointing course of the discussio
against 43; Coca Cola at 109% against 1121/
position
a
assumed
have
debts, which
nental Can at 35 against 36%; Eastman Kodak at the political
importance in the politics and ecoing
command
of
18%;
against
17
at
8214 against 86; Gold Dust
leading countries. European trade
the
all
of
Standard Brands at 13 against 13%; Paramount nomics
meanwhile, remain gloomy.
reports,
l
industria
Publix Corp. at 9% against 10%; Kreuger & Toll at and
are virtually at the lowest
averages
price
ity
1Cortimod
8
/
257
at
7% against 6%; Westinghouse Elec. & Mfg.
depression, while incurrent
the
in
reached
points
Colum54;
4 against
against 30; Drug, Inc., at 521/
to decline. Foreign
still
production tends
bian Carbon at 33% against 3714; American Tobacco dustrial
more unfavorable.
becoming
also are
at 77 against 75; Liggett & Myers class B at 55 trade returns
severe exchange
countries
n
Europea
8 against In the central
against 58; Reynolds Tobacco class B at 381/
life is apeconomic
and
effect
in
remain
ons
39%; Lorillard at 13% against 1414, and Tobacco restricti
is still
Berlin
Boerse
The
n.
stagnatio
g
proachin
Products class A at 8 against 7%.
and
ent
Governm
German
the
of
orders
under
idle
States
United
The steel shares have moved lower.
early
n
an
of
no
indicatio
4 on Friday the Reichsbank, and there is
Steel closed yesterday at42% against 451/
22%; resumption of activity. On the Berlin curb market,
against
8
/
191
at
Steel
of last week; Bethlehem
to parallel those in
4 against 15%; Crucible Steel at however, price trends are said
Vanadium at 133
markets.
other
and
Paris
21 against 2214, and Republic Iron & Steel at 514 the London,
The London Stock Exchange was quiet in the inagainst 6. In the auto group Auburn Auto closed
sesion of the week, and prices showed weakness
itial
of
last
/8 against 147% on Friday
yesterday at 1407
and there. The week-end news regarding the
here
s;
/
237
Chrysler
against
8
/
week; General Motors at 207
8; Nash Motors at 17% against reparations conference was unsettling and German
8 against 151/
/
at 133
8; Hudson bonds sagged sharply. British funds also were easy,
/
181%; Packard Motors at 47/s against 47
similar trend with
Motor Car at 9% against 11, and Hupp Motors at 4% while industrial stocks followed a
s dealings
Tuesday'
issues.
few
a
of
against 5. In the rubber group Goodyear Tire & the exception
rate
sterling
the
in
softness
and
dull,
again
4 against 1634 on were
Rubber closed yesterday at 151/
securient
Governm
British
of
selling
renewed
caused
5,
Friday of last week; B.F. Goodrich at 4y8 against
4 ties. The gilt-edged list was firm otherwise. British
and United States Rubber common at 43
industrial shares were irregular in light trading,
against 4%.
off on overThe railroad shares have made an occasional dis- while Anglo-American securities moved
but firm
quiet
a
After
York.
New
from
play of strength,but have suffered, as already stated, night advices
Lonthe
on
increased
activity
ay,
Wednesd
opening,
because of the lack of progress in the labor negotiaRumors
.
advanced
also
prices
and
exchange
don
8
/
tions. Pennsylvania RR. closed yesterday at 211
ents in the
t
against 22% on Friday of last week; Atchison To- were circulated of importan developm
buying
increased in conpeka & Santa Fe at 861/2 against 91%; Atlantic Coast reparations matter and
and foreign
moved
upward
funds
Line at 40 against 39%; Chicago Rock Island at sequence. British
l
list
The
was firm,
industria
.
advanced
/8 against bonds also
8; New York Central at 317
/
8 against 147
141/
ting
onal
stocks
participa
internati
and
British
36; Baltimore & Ohio at 18% against 20%; New both
was
opentone
the
at
cheerful
The
.
movement
the
in
Haven at 28% against 29%; Union Pacific at 78
ents
2; Southern Pacific at 34% against 36%; ing, Thursday, but the disappointing developm
against 831/
later
ons
caused
selling
ns
negotiati
reparatio
in
the
7;
against
Missouri
6%
at
Missouri-Kansas-Texas
2; Southern Railway at 12 in the day and most issues showed small net losses.
Pacific at 9% against 91/
8 against There were some expectations of a lowered bank
/
against 12%; Chesapeake & Ohio at 287
but when these were not realized selling of
4; Northern Pacific at 21 against 22%,and Great rate,
3
30/
s increased. Foreign bonds were a good
securitie
Northern at 23% against 23.
however, and home rails also were fairly
feature,
the
The oil shares have declined with the rest of
After early firmness yesterday, prices
steady.
27%
at
y
list. Standard Oil of N. J. closed yesterda
to levels about equal to the previous
back
dropped
Oil
Standard
against 29% on Friday of last week;
close.
at
Refining
Atlantic
8;
4 against 261/
of Calif. at 241/
Liquidation began on the Paris Bourse early last
8;
9% against 1014;Freeport-Texas at 18 against 191/
8 Monday, and it increased as the session progressed.
2 against 6; Texas Corp. at 121/
Sinclair Oil at 51/
8, carrying quotations sharply downward. The lack
against 13; Phillips Petroleum at 4% against 51/
of any agreement on the political debts proved dis78.
and Pure Oil at 4% against 4'/
nal traders hastened to sell,
The copper stocks are likewise lower. Anaconda concerting. Professio
the
and
general public also appeared
said,
s
dispatche
4 on Fri8 against 113
Copper closed yesterday at 101/
were
Losses
heaviest in Bank of France
ic.
pessimist
day of last week; Kennecott Copper at 10% against
shares, but others also showed severe
1214; Calumet & Hecla at 3% against 3% bid; Amer- and Suez Canal
tendency
Tuesday was irregular, the
8; Phelps drops. The
/
ican Smelting & Refining at 16 against 167
ly upward and downward,
moving
alternate
2 bid, and Cerro de Pasco market
/8 against 71/
Dodge at 67
more
ed than the gains.
losses
with
pronounc
but
Copper at 11% against 14.
The declines were small, however,in comparison with
JAN. 23 1932.]
FINANCIAL CHRONICLE
those of the previous session. A better tone resulted
Wednesday from the favorable parliamentary reception of Premier Laval's Ministerial declaration and
the insistence of the Premier on continued reparations payments. There were sharp gains in Bank of
France and Suez Canal shares, while others also rose
steadily. The tendency Thursday again became uncertain, with the declaration of the German Government declining a prolongation of the current debt
moratorium the chief disrupting factor. The tone
softened decidedly toward the end and most active
stocks showed large losses. Trading yesterday was
quiet and quotations off a little owing to the political uncertainties.
Kaleidoscopic changes in the outlook for the conference of governments on the German reparations
problem occurred all this week, with the fact gradually emerging that the Lausanne meeting scheduled
for Jan. 25 will be postponed for some time. The
numerous reports from Paris and London left no
doubt that various ways of dealing with the question
were under consideration in both centers. In France
especially,it was suggested, there appears to be great
unwillingness to take a definite stand on the reparations matter in advance of the elections of next
spring. It appeared also that feelers had been put
out in regard to the policy of the United States Government on intergovernmental debts, Secretary of
States Stimson reiterating, in response, that Washington does not recognize any connection between
reparations and the war debts and does not consider
an extension of the Hoover moratorium year feasible.
Following these developments, efforts were made to
postpone for a year the readjustment of reparations
so plainly called for in the recent report of the
B. I. S. Advisory Committee, but Germany
defeated
this plan by a positive stand for action before
July 1
next, when the Hoover year expires. It seems likely,
in view of the various national attitudes, that the
Lausanne conference will be held in the late spring
or early summer.
Paris reports of last Saturday began to suggest
the advisability of a delay in the Lausanne meeting,
called to act on the recommendations of the
Basle
Advisory Committee. Premier Pierre Laval
conferred, early in the day, with United States Ambass
ador Walter E.Edge,following discussions with Lord
Tyrrell, the British Ambassador, and Dr. Leopold
von Hoesch, diplomatic representative of German
y.
"According to sources usually well informe
d," a dispatch to the New York "Herald Tribune" said, "the
French are opposed to the opening of the Lausan
ne
conference on Jan. 25 because, at the moment, there
is no prospect of successful agreement and failure,
it is felt, would be disastrous. It is pointed out that
if the conference is held this month, Germany would
be obliged by the force of her own public opinion to
stand adamant on Chancellor Heinrich Bruening's
declaration that Germany cannot pay further reparadons, either now or in the future. France would
be driven equally by public opinion to oppose such
a stand. Italy and Great Britain hardly could withdraw so quickly from the positions that there should
be an all-around annulment of debts. Thus the conference would be obliged to lay the whole problem
before world public opinion under the worst possible
conditions, with an agreed solution virtually impossible." French opinion was said to incline toward
extension of the Hoover moratorium for another
551
year, and postponement of the Lausanne parley for
six months.
The problem received equally comprehensive consideration in London, dispatches from that center
reflecting a gradual relinquishment of the plan for
a meeting to begin next week and acceptance of postponement, which was formally announced in London
Wednesday. The British Government has the great
advantage of disinterestedness in its consideration of
the problem, as it rests on the Balfour declaration,
has an enormous Parliamentary majority, and will
not have to face a national election for years to come.
It was understood in London last Saturday, reports
stated,that Britain was proposing, with the support
of Italy, that the Lausanne conference meet for only
a few days and draw up a scheme for extension of
the general moratorium on intergovernmental debts
until the end of this year, giving time for a later
meeting at Lausanne for definitive action on reparations. A growing uncertainty regarding the plan
for an immediate conference was reported last Sunday and Monday.
A further complication was introduced Tuesday,
when Premier Laval went before the Chamber of
Deputies for the first time since reorganization of
his Cabinet, and in his Ministerial declaration set
forth that the French claim to reparations payments
will be firmly maintained. The policy of his regime
on this point, he said, would be to make no sacrifices
unless war debts were correspondingly reduced. A
semi-official resume of the reparations situation,
made public the same day in Paris, indicated that
Britain and France were agreed on the need for
extension of the moratorium on reparations for six
months or a year, and would take action along this
line provided the United States agreed to a similar
postponement of the war debt payments due Washington. This suggested solution of the impasse
proved impracticable, however, owing to interposed
considerations of both the German and United States
Governments.
The Foreign Office in London took the next step,
Wednesday, when it was announced officially that
the Lausanne conference will not begin next'Monday.
"The conversations which have been taking place
between the governments chiefly concerned with the
conference at Lausanne are not yet concluded," the
statement said,"and it is evident the conference cannot begin as early as next Monday, the date which
had been previously fixed. Further conversations
are now in progress, and the British Government
entertains the hope that it may be possible to come
to a satisfactory agreement regarding the procedure
'to be adopted in the course of a few days." Although
the announcement caused keen disappointment in
London, the action was not unexpected, dispatches
said, in view of the protracted efforts to arrive at
some understanding on the outlines of the problem.
"There has been no disposition lately in official quarters here to persuade anybody that preliminary
arrangements for the conference were
going
smoothly," an Associated Press report from
London said.
The German position was made plain in
an official
notification by Chancellor Bruening to Sir
Horace
Rumbold, the British Ambassador, that
FrancoBritish suggestions for a temporary
adjustment
would prove unacceptable. The British
representative called at the Foreign Office, it
was indicated,
to learn whether Germany would
consent to a 12-
552
FINANCIAL CHRONICLE
[voL. 134.
month prolongation of the present reparations re- tration will refrain from making any formal statespite, pending final action. This proposal was defi- ment of policy on the intergovernmental debt prob.
nitely rejected by the Chancellor, a Berlin dispatch lem before the reparations question has been crystalto the New York "Times" said, and the stand taken lized through a conference at Lausanne or otherwise.
That further efforts will promptly be made to
that definitive solution of the problem must be underan understanding on the reparations problem
reach
formal
the
taken before July 1. "The proposal that
last night, when Prime Minister Ramwas
autumn,
indicated
next
conference be deferred to some date
invited Premier Laval to spend the
say
MacDonald
United
the
to
payments
debt
before the Allied war
States are due, also was rejected," the dispatch week-end in London, discussing international
added. "To-day's announcement was supplemented affairs. Reparations, debts and disarmament are
by a positive declaration that the German Govern- to be included in the discussion, it was stated. Lord
ment would stoutly oppose any sort of provisional Tyrrell,the British Ambassador,extended the invitaadjustment which sought to evade a final showdown. tion, and M. Laval's acceptance was held up only
The Government,it was said, had reached the conclu- pending the vote of confidence in his new Cabinet
sion, supported by the Basle experts, that the re- in the Ohamber of Deputies. The French stand on
sumption of payments under the Young plan,includ- reparations was again repeated by the French Preing the non-postponable annuities, was no longer mier in the course of the Chamber debate yesterday.
His Government, he said, will surrender none of the
within the capacity of German economy."
of
,
to reparations gained by preceding Cabinets.
rights
Wednesday
,
Washington
in
Belated disclosure
the developments since President Hooby
He
reviewed
presented
problem
debt
the
on
m
a memorandu
Secretary of State Stimson to Paul Claudel, the ver's moratorium declaration, and stated that he
French Ambassador, last month, made plain the had filed a protest with the German Government
position of the United States in this matter. Five against Chancellor Bruening's assertion that the
chief points were set forth in the communication, it Reich cannot make further payments. M. Laval
was said. These are, first, that there is no connec- cited the report of the Advisory Committee to the
tion between reparations and war debts; second, effect that the potential economic power of Germany
temporary
that the European powers must take the initiative is tremendous, notwithstanding her
on reparations; third, that a request for extension difficulties.
of the Hoover moratorium could not obtain the apPreparations for the General Disarmament Conproval of Congress; fourth, that the United States
which is to begin at Geneva on Feb. 2 have
a
ference
of
the
formation
on
displeasure
with
look
would
united front by debtor nations against this country; been almost completed and delegates from more disfifth, that the existing debt arrangements, having, tant countries are already proceeding toward the
been concluded separately, can be revised eventually Swiss center with preliminary instructions from
only by separate accords. "The memorandum to their respective governments in hand. Expectations
France," a Washington special dispatch to (the New in regard to the conference are not very high, as
York "Times" said, "was one of several that were the present international atmosphere hardly seems
given to the various governments interested in the propitious for an adjustment of the opposing views
debt problem after Congress had approved the Hoover that prevail on disarmament procedure. In the
debt holiday year with the proviso asserting its un- series of preparatory disarmament conferences
willingness to have the debts to this country revised which laid the foundation for the meeting now in
prospect, France and her European allies consistdownward or canceled."
maintained that security must precede disently
the
postpone
to
definite
decision
Apart from the
and every attempt was accordingly made
armament
in
reaction
the
immediate
conference,
Lausanne
Europe to this series of developments was a stiffen- to foster a system of international alliances. Almost
ing of the nationalistic spirit in European countries. all the rest of the world believes, on the other hand.
British opinion accepted the incidents with cus- that security cannot be achieved without disarmatomary calmness, a report to the New York "Herald ment. The notable lack of harmony on this point
Tribune" said, but it was suggested that British has persisted to the present day, and the differences
policy hereafter "should consist simply in disregard- will probably dominate the months of negotiations
ing both reparations and debts, and concentrating now ahead. In addition to this difference on policy,
upon the conclusion of arrangements for a self-con- there are also grave divergencies among the nations
tained Empire." In France much disappointment regarding practical methods of limitation of arms.
was apparent regarding the attitude of the Washing- There are equally important supporters of blanket
ton authorities and the American Congress, and this control of armaments through the budget, and sp.
found expression in a prolonged debate in the Cham- eific control of the number of men, of ships, and of
ber of Deputies, which continued until the small war material. These problems will again be aired by
hours yesterday morning. Orator after orator re- the representatives of virtually all the nations of
turned to the subject, a Paris dispatch to the New the world, but a means for settling the differences
York "Times" states, and the point was made fre- is not yet apparent.
An important change in the personnel of the
quently that "the United States proposed this moratorium and now refuses to extend it." The debate, United States delegation to the Geneva conference
the report indicated, was an "almost endless lament was announced by.President Hoover, Tuesday, as a
over America's policy of meddling and then drop- result of the appointment of General Charles G.
ping." Leaders like Louis Mann declared stoutly, Dawes as President of the Reconstruction Finance
have
in the course of the session, that French claims to Corporation. Ambassador Dawes was to
his
until
the unconditional payments cannot be abandoned, headed the delegation from this country,
ive
representat
the
as
diplomatic
and it was also maintained that "either Germany recent resignation
it
made
Hoover
Mr.
effect.
given
was
must pay or France will not pay." In Washington in London
will
Stimson
L.
Henry
State
of
Secretary
that
plain
it was indicated Thursday that the Hoover Adminis-
JAN. 23 1932.]
FINANCIAL CHRONICLE
replace Mr. Dawes as the leader of the United States
group. The Secretary of State will not go to Geneva
until the conference has been organized, and in the
meantime Hugh S. Gibson, Ambassador to Belgium,
will head the American delegates. Members of the
delegation held their final conferences with Administration leaders Monday, and they were instructed,
dispatches said, to leave the initiative in the disarmament problem to the military powers of Europe.
They began their journey to Geneva, Wednesday,
on the steamer President Harding, accompanied by
a large group of military and naval advisers.
553
week, the lack of progress being due in good part
to the virtual impasse that has been reached in the
reparations and debt discussicins. There were further conferences in Berlin this week between German
financial and governmental authorities and the international committee of bankers which is negotiating
an extension of the "stillhaltung" agreement covering
German private debts beyond the present expiration
date of Feb. 29. Chancellor Heinrich Bruening
joined the discussion last Saturday, an Associated
Press dispatch said, and he presented an outline of
the German financial positon. Final conclusions are
now looked for at an early date, as several subcomFrench policy in regard to the outstanding ques- mittees have alread been
y
appointed to embody in
tions ofthe day was outlined by Premier Pierre Laval legal form the decisio
ns so far arrived at. "Slowly
before the Chamber of Deputies, Tuesday, in the and painfully the negotia
tions are arriving at a comcourse of a Ministerial declaration accompanying the promise state which is
far from satisfactory to either
presentation of the reconstructed French Cabinet. side, but inevitable in
view of the menacing state of
The chief change effected in the swift Cabinet crisis German finances,"
a Berlin dispatch to the New
last week was the replacement of Foreign Minister York "Herald Tribun
e" states.
Aristide Briand by the Premier, who assumed the
A re-examination of the Austrian financial
Foreign Affairs portfolio in addition to his duties position was started
by the League of Nations
as PreSident of the Council. In the Ministerial dec- Finance Committee late last
week, attention being
laration, accordingly, the foreign policy assumed the directed especially to budget
and credit questions.
dominant place. The Premier was particularly em- The Committee heard Chance
llor Buresch, Finance
phatic in his references to reparations. France, he Minister Weidenhofer,
and Dr. Richard Reisch,
said, will not permit her right to these payments President of the Bank of Austria
, a Geneva dispatch
from Germany to be suppressed. "A discharge in to the New York "Times
" indicated. In New York
favor of our debtors is asked of us," M. Laval said. it was made plain last Saturd
ay that the committee
"A double duty is imposed on us. Toward the gen- of bankers in charge
of working out a "standstill"
erations which suffered from the war there is the agreement between
American institutions and Hunduty of fairness—to sacrifice nothing of our credit garian private debtors
has abandoned efforts along
without a corresponding remission of our own debts. this line becaus
e of notifications from Hungary that
Toward future generations there is the duty of pru- there would not
be sufficient exchange available to
dence—to subordinate all agreements to a just bal- pay
the interest and commissions on short-term
ance of the conditions of production and of existence. Hungar
ian debts. Vienna reports regarding the
This balance will be broken if, when this crisis is Centra
l European situation as a whole, outside Gerpast, a disproportion of financial charges burdening many,
indieate that the position is becoming steadily
the activities of the peoples places us in any state more difficul
t. The recent Hungarian declaration
of inferiority in the international markets."
of a moratorium on public debts is likely to be emuTurning to the pressing question of disarmament, lated soon,
a dispatch of Sunday to the New York
M. Laval declared that France stands by the prelimi- "Times
" stated, by Austria, Bulgaria and Greece.
nary condition to any arms limitation scheme which "Austri
a's vitality is still drained by the Credithas been successively laid down at Geneva by her
anstalt, and her savings banks have been seriously
various representatives at conferences in recent
embarrassed by hoarding of schillings," the report
years. He reiterated that there must be respect for
remarks. "Bulgaria has been successively crippled
signed engagements, arbitration, definition
of an by peace (treaties, earthquakes and agricultural deaggressor and mutual assistance. "In other words,
" pressions. Greece was hard hit by the fall in the
a Paris dispatch to the New York "Times" remarked,
pound sterling."
"there must be security before there is disarm
ament." In internal affairs, the Premier urged
the
In line with the'heightened interest throughout the
passage of the budget before the elections for
the world in national budget figures, much attention
Chamber in the spring, and declared that the
Gov- was attracted last Saturday by the preliminary conernment would continue to take appropriate
meas- sideration of the Italian estimate for the year from
ures to combat the economic depression. "The
Pre- July 1 1932 to June 30 1933, completed that day
by
mier's declaration was read before a crowded Chamthe Cabinet Council in Rome. Expenditures for the
ber," the "Times" report said. "He was cheered on period
were fixed at $1,055,000,000, or somewhat less
the Right and in the Center. From the Left rose than
the sum of $1,103,000,000 originally suggested
repeated cries of the name of Aristide Briand. It
last month. National revenues for the fiscal
year
was the shade of the former Minister of Foreign Af- were
fixed at $979,000,000, leaving an estima
ted
fairs which dominated the debate from which he deficit
of $76,000,000. In an official statem
ent conwas absent in person. Every orator mentioned taining
these figures, it was emphasized that
the
him." Numerous interpellations on the foreign Government
would re-examine the estimates
from
policy of the Laval Ministry were presented. The time to time
and would take whatever
measures
question of confidence was posed in the Chamber last might be
necessary to balance the budget.
Mounting
night, and the Laval Cabinet was upheld by a vote unemployment
totals in Italy are occasioning
much
of 303 to 265.
concern, a dispatch of last Saturday
to the New
York "Times"indicates, and are hasten
ing the efforts
Credit and exchange difficulties in the Central to fortify
the national exchequer. The
official report
European countries showed no improvement this for
December showed 982,000
unemployed, an in.
551
FINANCIAL CHRONICLE
crease of 104,000 from the November figures. "With
a heavy deficit already showing in the current year's
budget and a still larger deficit foreseen next year,
and with unemployment figures at the unprecedented
total of nearly 1,000,000, the Government is making
vigorous efforts to reorganize all Italian industries,
placing them in the best position to weather the
storm," the dispatch remarks. "Only a short time
ago it was announced that a merger had been effected
of all the important Italian steamship companies
into two powerful organizations. And to-day a Government decree established a compulsory consortium
of all steel producers in Italy."
A grave and menacing uprising by Communists in
the Province of Catalonia in Spain was reported
yesterday in dispatches from Madrid,Premier Azana
describing the movement as the "forerunner of a
gigantic plot, carefully planned." Red flags were
raised in numerous towns in the Llobregat and Cardenas Valleys of Catalonia by Syndicalists and Communists, a report to the New York "Times" said.
They proclaimed that a "Soviet Republic of Spain"
had been established. "The strikers cut telephone
wires and cables and railway tracks in all directions
in order to isolate themselves," the dispatch said.
"Arming themselves with guns or anything else
handy, workers and miners in blue jeans have taken
possession of the entire northern district, from Manresa to Figols, according to Government reports."
Action was swiftly taken by the Madrid authorities
to quell the uprising, 2,500 troops under General
Mugeda being dispatched to the area. A squadron
of airplanes also was ordered into the district to
assist the guards. In Barcelona numerous persons
suspected of a connection with the plot were rounded
up. Premier Azana stated that the disorders at
Manresa were intended to concentrate 'the Government's attention there while more serious assaults
were made elsewhere.
The diplomatic record covering the Manchurian
adventure of Japan was practically completed last
Saturday, when the Tokio Government replied in
rather stiff terms to the Washington note of Jan. 7
insisting on maintenance of the "Open Door" policy
of the Nine Power Treaty. The note, handed by For.
eign Minister Kenkichi Yoshizawa to Ambassador
W. Cameron Forbes, was immediately made public.
It makes the interesting assertion that the Tokio
Government "is well aware that the Government of
the United States could always be relied upon to do
everything in their power to support Japan's effort
to secure full and complete fulfillment in every detail
of the treaties of Washington and the Kellogg treaty
for the outlawry of war." In regard to the policy
of the Open Door,the Japanese Government restated
its adherence to that principle and added its regret
"that its effectiveness is so seriously diminished by
the unsettled conditions which prevail throughout
China." Japanese territorial aims or ambitions in
Manchuria were again denied. It was indicated in
Washington last Saturday that no reply to the note
was considered necessary. There were no developments of note within the disputed territory. The
Japanese forces under General Shigeru Honjo continued their campaign to rid the country of "the
curse of banditry," and sanguinary engagements
were reported at a number of points. A tense situation developed in Shanghai this week, owing to the
(VOL. 134.
aroused feelings of the Ohinese and Japanese. A
Chinese attack on five Japanese monks was followed
by reprisals on the part of a Japanese patriotic
association in the treaty port. Forty members of the
group invaded a Chinese district and burned down
two factories which were considered the headquarters of the attacking Chinese. Several Japanese vessels carrying a large landing party were rushed to
Shanghai.
The Hungarian National Bank on Tuesday, Jan.
20, reduced its discount rate from 8% to 7%. On
Thursday the Banco de Republica of Colombia lowered its discount rate 1% to 6%. Rates are 12% in
Greece; 8% in Austria and Hungary; 7% in Germany, Portugal, India, Italy and Hungary, 63/2%
in Spain and Ireland; 6% in Norway, Sweden, Denmark, Danzig, Czechoslovakia, Colombia and in
England; 33/2% in Belgium; 3% in Holland, and
23/2% in France and Switzerland. In the London
open market discounts for short bills on Friday were
4%@53/2% as against 531@59'i% on Friday of last
for three months' bills as
1
week, and 5./@5%%
of last week. Money
Friday
on
4_@6%
against 53
on call in London on Friday was 33%. At Paris
4%, but in
the open market rate continues at 17
Switzerland the rate was reduced 1-16 of 1% to
1 11-16%.
The Bank of England statement for the week ended
Jan. 20 shows a loss of £9,664 in gold holdings,
bringing the total down to £121,321,171, as compared
with £142,861,766 a year ago. As circulation contracted £6,865,000, however, reserves rose 0,855,000. Public deposits fell off £1,548,000 while other
deposits increased 0,312,125. The latter consists
of bankers accounts and other accounts, which increased £8,780,041 and £532,084 respectively. The
proportion of reserve to liability is up to 35.42%
from 32.24% a week ago. The ratio was 45.29%
in the corresponding week last year. Loans on
Government securities fell off £1,130,000 and those
on other securities rose £2,059,720. The latter includes discounts and advances which decreased
1.,814,856 and securities which increased 0,874,576.
The discount rate remains at 6%. Below we show a
comparison of the different items for five years:
BANK OF ENGLAND'S COMPARATIVE STATEMENT.
1928
1929
1930
1931
1932
Jan. 25.
Jan. 23.
Jan. 22.
Jan. 21.
Jan. 20.
.£
357,879,000 346,461,899 346,399,540 355.366,406 134,640,060
Clreulation.a
20,812,000 22,323,852 29,151,416 16,850,494 16,525,703
Public deposits
115,925,709 102,197,129 95,960,328 98,323,558 98,707,639
Other deposits
Bankers accounts_ 77,481,720 68,812,580 59,948,356 60,841,865
38,443,989 33,384,549 36,011,972 37,481,693
Other accounts_
Governm't securities 52,430,906 49,246,247 57,665,855 49,486.855 35,304.777
53,351,564 36,953,788 20,658,442 25,824,593 56,717,327
Other securitiesDint. ec advances 14,031,271 10,994,845 5,779,566 10,763,570
39,920,293 25,958,943 14,878,876 15,061,023
&muffles
Reserve notes dr coin 48,441,000 56,399,867 64,889,435 57,976,556 41,312,893
Coln and bullion.._121,321,171 142,861,766 151,288 975 153,342,962 156,202,953
Proportion of reserve
35 13-16
50%
51.86%
45.29%
35,42%
to liabilities
4%
434%
5%
3%
6%
Bank rate
England
a On Nov. 29 1928 the fiduelarY currency was amalgamated with Bank of
of England
note issues, adding at the time £234,199,000 to the amount of Bank
notes outstanding.
The weekly statement of the Bank of France dated
Jan. 15, shows a gain in gold holdings of 567,356,957
francs. The total of gold is now 69,846,822,715
francs, which compares with 54,402,709,513 francs
a year ago and 42,736,924,580 francs two years ago.
A decrease appears in credit balances abroad of 726,000,000 francs, while bills bought abroad rose 179,000,000 francs. Notes in circulation contracted 913,000,000 francs, reducing the total of the item to 84,-
JAN. 23 1932.]
FINANCIAL CHRONICLE
007,954,190 francs. Total circulation last year was
76,992,418,285 francs and the year previous it was
68,688,312,760 francs. French commercial bill
discounted records a loss of 372,000,000 francs,
while advances against securities and creditors current accounts increased 4,000,000 francs and 680,000,000 francs respectively. The proportion of gold
on hand to sight liabilities this week is 62.28%. as
compared with 61.65% last week and 53.92% last
year. A comparison of the various items for the past
three years is furnished below:
BANK OF FRANCE'S COMPARATIVE STATEMENT.
Changes
Status as of
for Week.
Jan. 15 1932. Jan. 16 1931. Jan. 17 1930,
Francs.
Francs.
Francs.
Francs.
Gold holdings_ _ __Inc. 567,356,957 69,846,822,715 54,402,709,513 42,736,924,580
Credit balls. abed_Dec. 726,000,000 10,405,219,771 7,032,726,544 7,046,119,262
a French comm'l
bills disoounted_Dec. 372,000,000 5,528,787,427 7,381,290,012 6,602,471,232
b Bills bou't abr'd_Inc. 179,000.000 10,101,771,296 19,330,196,018 18,695,469,860
Adv.nest.secure_ _Inc. 4,000,000 2,865,921,132 2,986,780,738 2,519,212,813
Note cis culation_ _Dec. 913,000,000 84,007,954,190 76,992,418,285
Cred. curr. accts_ _Inc. 680,000,000 28,132,463,737 23,909,560,767 68,688,312,760
18,270,204,566
Propor. of gold on
hand to sight liabilities
Inc.
.63%
62.28%
53.92%
49.15%
a Includes bills purchased in France. b Includes bills discounted abroad.
The Reichsbank statement for the second quarter
of January records a decrease in gold and bullion
of 12,802,000 marks. The total of gold now stands
at 966,241,000 marks, which compares with 2,215,828,000 marks last year and 2,283,777,000 marks
the year before. Reserves in foreign currency, bills
of exchange and checks, other daily maturing obligations and investments show decreases of 7,409,000
marks, 260,143,000 marks, 32,896,000 marks and
1,000 marks respectively. Notes in circulation decreased 193,997,000 marks, reducing the total of the
item to 4,381,554,000 marks. Total circulation at
the corresponding period a year ago was 3,962,289,000
marks and the year previous it was 4,187,045,000
marks. Increases appear in silver and other coin
of 37,476,000 marks,in notes on other German banks
of 2,612,000 marks, in advances of 9,470,000 marks,
in other assets of 7,933,000 marks and in other liabilities of 4,029,000 marks. The item of deposits
abroad shows no change. The proportion of gold
and foreign currency to note circulation stands this
week at 25.6%, which compares with 62.7% last
year and 64.3% the year before. A comparison of the
different items for three years is shown below:
555
23'% average on a $50,000,000 issue sold Jan. 11.
Brokers' loans against stock and bond collateral were
down $32,000,000 for the week ended Wednesday
night, according to the tabulation of the Federal
Reserve Bank of New York. Gold movements for the
same period consisted of $36,363,000 and imports of
$8,307,000. The exports were partly offset by a net
decrease of $16,100,000 in the stock of gold held earmarked for foreign account. It was disclosed Tuesday that the Bank of France had arranged for transfer
from New York to Paris of $125,000,000 gold held
earmarked for the French bank here. Shipments are
to be made by all available vessels in amounts of
about $12,500,000 each.
Dealing in detail with call loan rates on the Stock
Exchange from day to day, 2
was the rate
ruling all through the week for both new loans and
renewals. The time money market remains practically unchanged, with little possibility of change
in the near future rates are nominally quoted at
33"2@3%% for all maturities. The market for prime
commercial paper has been dull. Very little paper is
available but the supply was generally sufficient to
meet the requirements. Rates are unchanged.
Quotations for choice names of four to six months'
maturity are 331@431.%. Names less well known
are 4
On some very high class 90-day paper
occasional transactions at 332% continued to be
noted.
The market for prime bankers' acceptances has
been virtually at a standstill this week. There was
a slight flurry of business on Monday but few bills
are coming out. Rates remain unchanged. The
quotations of the American Acceptance Council for
bills up to 90 days are 23/8% bid, 29,1% asked; for
four months' bills, 34 bid, 3% asked;for five and six
months, 34 bid and 33..
4 % asked. The bill buying
rate of the New York Reserve Bank remains unchanged at 2%% on maturities up to 45 days, 3%
on maturities of 46 to 120 days and at 33.4.% on maturities of 121 to 180 days. The Federal Reserve
banks show a falling off this week in their holdings
of acceptances, the total having dropped from $213,801,000 to $188,041,000. Their holdings of acceptances for foreign correspondents further increased
from $285,141,000 to $285,299,000. Open market
rates for acceptances are as follows:
REICHSBANK'S COMPARATIVE STATEMENT.
Changes for
Week.
Jan. 15 1932. Jan. 15 1931. Jan. 15 1930.
Assets—
Reichsmarks.
Reichsmarks. Retchsmarks. Reichsmarks.
Gold and bullion
Dec. 12,802,000 966,241,000 2,215,828,000 2,283,777,000
depos'
which
abr'd.
Of
Unchanged
111,916,000 222,445,000
Ree've In for'n curr- Dec. 7,409,000 154,843,000 268,085,000 149,788,000
397,672,000
Bills of exch.& checks.Dec. 260,143,000 3,610,979,000 1,678,737,000 1,893,771,090
SPOT DELIVERY.
Silver and other coin_ _Inc. 37,476,000 177,529.000 189,723,000
139,601,000
—180 Days— —150 Days— —120 Days—
Notes on oth.Ger. bks.Inc.
2,612,000
8,082,000
18,034,000
18,710,000
Bid. Asked.
Bid. Asked.
Bid. Asked.
Advances
Inc. 9,470,000 108,486,000 114,948,000
67,859,000 Prime eligible bills
334
334
Investments
334
3
334
334
Dec.
1,000 160,645,000 102,519,000. 92,602,000
—90Days— —60Days— —30Days—
Other assets
Inc. 7,933,000 937,904,000 514,303,000
578,468,000
Bid. Asked.
Bid. Asked.
Bid. Asked.
Zdablllt1€
Prime
eligible
bills
234
234
234
234
234
Notes In circulation Dec. 193,997,000 4,381,554,000 3,962,289,000
0th. daily mat. obllg_Dec. 32,896,000 384,316,000 322,757,000 4,187,045,000
FOR DELIVERY WITHIN THIRTY DAYS.
Other liabilities
Inc. 4,029,000 871,508,000 323,204,000 543,353,000
299,674.00u Eligible member banks
334
bld
Propor. of gold & Torn
Eligible non-member banks
334 bid
curr.to note clrcula_Inc.
0.7%
25.6%
64.3ft
62.7%
234
There have been no changes this week in the redisMoney rates in the New York market were un- count rates of the Federal Reserve Banks. The followchanged this week, call loans on the Stock Exchange ing is the schedule of rates now in effect for the various
prevailing at 23/2% for all transactions, whether re- classes of paper at the different Reserve banks:
OF FEDERAL RESERVE BANKS ON ALL
newals or new loans. This also is the rate charged DISCOUNT RATES
CLASSES
AND MATURITIES OF ELIGIBLE PAPER.
all of last week. Although funds were in great supply
Rate in
with demand light, few offerings at concessions were
Federal Reserve Bank.
Effect on
Date
Previous
Jan. 22.
Established.
Rate.
made in the unofficial or street market. The only
Boston
334
Oct. 17 1931
234
New York
offerings of this nature were made yesterday, when a Philadelphia
334
Oct. 16 1931
234
334
Oct. 22 1931
3
Cleveland
334
rate of 23.j% was quoted. Time loans were un- Richmond
Oct. 24 1931
3
4
Oct. 20 1931
3
334
changed. The trend as indicated by Treasury dis- Atlanta
Nov. 14 1931
3
Chicago
34
Oct. 17 1931
234
Louis
334
count bill financing was slightly easier, an issue of St.
Oct. 22 1931
234
Minneapolis
334
Sept. 12 1930
4
Kansas City
334
$50,000,000 on 93-day bills being sold Thursday at Dallas
Oct. 23 1931
3
4
Oct. 21 1931
3
334
Oct. 21 1931
an average cost to the Treasury of 2.48%, as against San Francisco
23-4
556
FINANCIAL CHRONICLE
[VoL. 134.
The
Sterling exchange is steady, although the market equally between France and the United States.
the
in
te
participa
not
did
Bank
Reserve
Federal
the
on
hesitancy
is thin, with every indication of
was
portion
American
part of traders, arising this week chiefly from the cir- Treasury credit, of which the
. The strain on
cumstance that on both sides of the water reductions granted by a banking syndicate
as speedily to exrate
a
such
in bank rates were expected—at London and New sterling continued at
suspension of
the
in
resulting
credits,
these
haust
York. The range this week has been from 3.44 to
Gold con21.
Sept.
on
England
by
gold
with
payments
3.4934. for bankers' sight bills, compared
and it is
premium,
a
at
London
in
sold
to
be
tinues
cable
for
3.37% to 3.49% last week. The range
operating
ls
individua
transfers has been from 3.443/i to 3.4932, compared interesting to note that private
rs in London
speculato
of
direction
the
under
in
probably
firmness
i
3
/
The
ago.
with 3.37 to 3.49% a week
s at 25s.,
up
sovereign
sterling which developed a week ago seems to have are scouring England buying
These
20s.
course
of
worth
being
been based largely upon beliefs entertained by Euro- the gold sovereign
and
premium
further
a
at
sold
again
pean bankers that the banking authorities here would gold coins are
the
although
down,
melted
iously
surreptit
being
period
are
further reduce money rates and enter upon a
offense,
penal
a
is
realm
the
of
coin
of
the
the
melting
upon
ideas
of credit inflation. They based their
ment. The sovreduction in bankers' acceptance rates here last punishable by two years' imprison
of 22 carat
week and upon the rapid passage of the Reconstruc- ereign is coined to contain .256 ounces
Hence,
30
shillings.
roughly
tion Finance Corporation bill, as well as upon numer- gold, which is now worth
law is
s
,
Gresham'
penalties
and
all
despite restrictions
ous unfounded statements in the press here in
This
good."
out
drives
money
banking
r
the
operating—"inferio
sections of the country exaggerating
market
the
London
in
sold
have
other
to
and
seems
gold
week
y,
difficulties, municipal credit stringenc
ounce. The Bank of
phases of the general business depression. These at from 118s. 6d. to 120s. an
Jan. 20 shows
fears were reflected more in the movement of Con- England statement for the week ended
of 0,664,
holdings
tinental currencies than in the flucutation or activity a further slight decrease in gold
compares
which
171,
£121,321,
the total standing at
of the pound.
ago.
year
It would appear from the action of the market with £142,861,766 a
At the Port of New York the gold movement for
that the international difficulties arising out of reparthe
,
suggested
the week ended Jan. 20, as reported by the Federal
ations problems,international payments
all
and
um,
related
moratori
Reserve Bank of New York, consisted of imports of
extension of the German
Argenquestions which have persistently affected the market $8,307,000, of which ,625,000 came from
India,
from
have had no influence during the past week. That tine, $2,941,000 from Colombia, $300,000
and
Mexico,
from
these factors seem to have been completely dis- $234,000 from Peru, $117,000
Ex.
countries
American
counted in foreign exchange operations suggests that $90,000 chiefly from Latin
was
000
$24,269,
which
of
00,
the entire banking community here and abroad have ports totalled $36,363,0
reached the conclusion that these problems will at shipped to France, $8,233,000 to Belgium, $3,260,000
last be definitely settled in such a way as to cease to England, $346,000 to Switzerland, and $255,000
000
to interfere with the operation of real economic forces to Holland. There was a decreas,e of $16,100,
tabular
In
and that from now on heedless political talk and in gold earmarked for foreign account.
York
large newspaper headlines, innocuous in themselves, form the gold movement at the Port of New
Federal
the
by
reported
as
20,
are all that remains of the international debt ques- for the week ended Jan.
tions. In other words, the attitude of bankers seems Reserve Bank of New York, was as follows:
20,INCLUSIVE
to be that the business world is going to arrange its GOLD MOVEMENT AT NEW YORK,JAN. 14-JAN.
Exports.
Imports.
lines
al
commerci
own settlement upon economic and
$24,269,000 to France
$4,625,000 from Argentina
8,233,000 to Belgium
from Colombia
and the political elements are being forced into con- 2,941,000
3,260,000 to England
300,000 from India
in
redismade
was
no
change
Although
346,000 to Switzerland
formity.
234,000 from Peru
255,000 to Holland
Mexico
117,000 from
this
in
London
or
York
New
in
either
rates
count
90,000 chiefly from Latin
American countries.
week, the market will continue to reflect anticipation
of reductions from week to week until changes are $8,307,000 total
$36,363,000 total
Net Change in Gold Earmarked for Foreign Account.
actually made, either upward or downward. The
Decrease 816,100,000.
Bank of England, according to newspaper talk has
gold
imports were $869,600, of which
of
On
Thursday
$75,the
000
already repaid more than $60,000,
from
India and $103,000 came from
came
$766,600
Federal
Reserve
the
000,000 credit still standing with
There were no exports of
ts.
of
the
Bank
the
Straits
Settlemen
balances
banks. In addition the dollar
account
of England are growing steadily and the indications the metal and gold earmarked for foreign
no imwere
there
y
.
Yesterda
be
wiped
out
$300,000
will
decreased
000
$75,000,
are that the entire
$20,to
d
upon maturity at the end of this month. In well ports. Gold exports, however, amounte
to
shipped
was
informed banking circles it is thought probable that 704,000, of which $20,474,000
a
was
There
nd.
Switzerla
the Bank of England is reimbursing the Bank of France and $230,000 to
foreign
for
d
earmarke
gold
in
France in a similar manner and that no extension of decrease of $12,000,200
gold was
the credit appears necessary now. On Aug. 1 1931, account. During the week $1,900,000 of
were no
There
Canada.
from
Chicago
the Federal Reserve Bank of New York, in con- received at
during
ports
Pacific
junction with other Federal Reserve banks announced reports of gold being received at
that it had agreed to purchase from the Bank of the week.
Canadian exchange continues at a severe disEngland "up to the approximate equivalent of
ons this week show a con$125,000,000 of prime commercial bills." The Bank count though transacti
over the 19% and 20%
ment
improve
of France extended a similar credit, making a total siderable
g some weeks ago. On
prevailin
rates
of $250,000,000. This credit was granted to permit discount
were quoted at 15 5-16%
funds
Montreal
the Bank of England to support sterling and was Saturday
1414%, on Tuesday at
at
Monday
on
discount,
followed by a $400,000,000 one-year banking credit
.70, on Thursday at
to the British Treasury at the end of August, divided 13%%, on Wednesday at 143.4
JAN. 23 1932.]
FINANCIAL CHRONICLE
557
1431%, and on Friday at 1414%. The Canadian in June 1928, following stabilization of the unit.
rate has been improving very slowly since the latter The Bank's ratio of gold to liabilities is also at a new
part of December, but current rates are at about record high, standing on Jan. 15 at 62.28%, which
the highest since the latter part of November. Two compares with 61.65% on Jan. 8, with 53.92% on
causes seem to account for the recovery. In the Jan. 16 1931, and with legal requirement of 35%.
first place, owing to general nervousness the rate Local banking authorities attribute the strength of
declined far below rates considered justified by the franc in the New York market this week, as
also
foreign exchange authorities. A salutary effect was the strength displayed by other Continental
curproduced by announcements made early in the week rencies, to fears entertained on the other side,
that the Canadian Bankers Association had decided especially in France, of pending currency inflation
after a conference with P;emier Bennett to permit on this side. Despite assertions by officials
on every
the purchase of foreign securities by Canadian hand in this country that the Reconstruction Finance
nationals and to furnish exchange for such pur- Corporation and the Federal Reserve
system's more
poses. However, a recovery to anywhere near par liberal credit policies are not designed
to promote
is not expected in banking circles under existing inflation and probably will not cause any, the
state
circumstances. The Canadian dollar was sub- of nervousness abroad is apparently such
that any
jected to severe pressure in the past month through constructive measures taken here are seized
upon as
remittances of funds to New York for debt service. justification for wholesale repatriat
ion of funds.
This pressure existed up to the middle of January.
In addition to these private withdrawals, the withNo further heavy interest payments are due for drawals of the Bank of France are very
heavy, but
the time being. Canadian municipalities, bankers, this movement has nothing to do with
inflation
and industrial leaders are making concerted efforts fears. It is thought in banking circles
that the
to do their financing at home. To the extent that movement of French, Dutch, and
other funds
they accomplish this object, there will be improve- from this market will subside and be
followed by
ment in the relation of the Canadian dollar to that a reverse movement as soon as
it is realized abroad
of the United States.
that recent measures taken in this country are for
Referring to day-to-day rates, sterling exchange on the purpose of releasing "frozen assets" and
of
Saturday last was firm. Bankers'sight was 3.47%@ checking an unwarranted deflation of prices,
and
3.493 cable transfers 3.48/@3.493/2. On Monday by no means to inflate the currency. Of course,
the market was quiet with sterling fractionally easier. it will not be long before the
European countries
The range was 3.463@3.477A for bankers' sight and
discover that if they choose to withdraw all the
3.47(4)3.48% for cable transfers. On Tuesday ster- gold
that they have any claim upon by reason of
ling moved lower. Bankers' sight was
3.4432@, documents of whatever sort calling for gold realiza3.45%; cable transfers 3.44%@3.45%. On Wednestion, there will still be left on this side very much
day the market was more active and sterling fracmore gold than our legal requirements demand.
tionally firmer. Bankers' sight was 3.443@3
.46%
German marks, although only nominally quoted
cable transfers 3.44%@3.467
4. On Thursday the because of the restrictions which were established
market was steady. The range was
63j after the crisis in June and especially since the
for bankers' sight and 3.453.i@3.463/ for3.45@3.4
cable trans- September crisis in London, nevertheless moved
fers. On Friday sterling was lower, the range was
down to new low ground in this week's trading,
3.44@3.45 for bankers' sight and 3.4432@3
.453 for when the New York rate was quoted on Tuesday
cable transfers. Closing quotations on Friday were
at 23.52. In foreign exchange circles various ex3.443/2 for demand and 3.44% for cable transfers. planation are
s
advanced for the decline, none of
Commercial sight bills finished at 3.44, 60 day bills
which
seem
plausible
in view of the fact that the
at 3.40, 90 day bills at 3.383/
2, documents for pay- general technical position of
traders seems to be
ment (60 days) at 3.40 and seven day grain bills
at based on the idea that the German situation with
3.433,. Cotton and grain for payment closed
at respect to reparations and international settle3.44.
ments is steadily being eliminated from the bitter
"--•
political
controversy which has surrounded these
Exchange on the Continental countries has in
the questions since the Peace of Versailles.
main been firmer than at any time in several
weeks.
Even the imminent advent to power of Herr Hitler
German marks, however, prove an exception. French
seems to cause the banking world both here and
francs have been exceedingly firm, ruling
for the abroad much less apprehension. Berlin dispatches
greater part of the time at and sometimes above
the on Thursday stated that the discussion with respect
export point for gold from New York to
France. to the German short-term credits under the "standFrench interests have been drawing gold from
New still" proposal have resulted in complete agreement
York in rather large amounts for several
weeks, but on all points, including repayments, security, eligibilthis week their withdrawals have been especially
ity of bills, and liquidation of cash credits. The only
heavy. As noted above, the Federal Reserve Bank
point of difference concerns the interest rates payable
reported that gold exports to France up until
Friday next year. In the view of German bankers the
night were $44,743,000. The latest Bank of
France stability of the reichsmark seems to be in no danger
statement is as of Jan. 15 and can hardly be
expected since the "standstill agreement" does not impose too
to include the $4,370,000 of gold taken from here
onerous conditions of payment. The political news
during the week ended Jan. 13, and of course
does which might be expected to have any bearing on mark
not include the present transfers. The current
exchange appears in detail in other columns. This
statement of the Bank of France shows an extraorweek the Reichsbank shows a decrease in gold holddinary increase in gold holdings of 567,356,957 francs,
ings of 12,802,000 reichsmarks, the total standing on
again establishing a new record high of 69,846,822,715
Jan. 15 at 966,241,000 reichsmarks, hich compares
francs, which compares with 54,402,709,513 *francs
with 2,215,828,000 reichsmarks a year ago. The
on January 16 1931 and with 28,935,000,000 francs Bank's ratio shows a slight
improvement over a week
558
FINANCIAL CHRONICLE
134.
Exchange on the countries neutral during the war
ago, standing at 25.6%, which compares with 62.7%
the trends
a year ago. A few days ago Herr Wagemann, Presi- continues in all important respects along
Septemand
June
of
dent of the German Statistical Office, published a which developed after the crises
weaker
been
have
ies
plan for the reform of the monetary system of the ber. The Scandinavian currenc
l.
nomina
are
ions
quotat
is
thin
and
market
Reichsbank and of private banks. The basis of the and the
folily
ordinar
s
navian
of
the
Scandi
tions
fluctua
The
plan is the proposal that only large bank notes and
ge. During the
g
bankers' deposits be covered with gold, virile the low closely those of sterlin exchan
s have been
d
guilder
Hollan
week
the
of
part
greater
which
notes
3,000,000,000 reichsmarks of small bank
respect
with
y
par
above
slightl
ruled
have
and
steady
tional
interna
or
are not used for production purposes
is
guilder
the
that
the
fact
e
Despit
transactions are to be covered by Government bonds. to the dollar.
fairly
York,
New
gold
from
of
point
It is understood that German Government officials below the export
nts of the metal continue from this
view this publication as a report of purely private good size shipme
This movement is not on an
rdam.
Amste
to
side
character and regard the plan as an inflationary
to the insistence of numerdue
is
but
ge
basis,
exchan
in
change
project. The Reichsbank opposes any
demand the sale of their
who
rs
investo
Dutch
ous
the current German monetary policy.
the
remittance of the pros and
A special Brussels dispatch to the "Wall Street American holding
in gold.
Journal" on Monday relating to the status of the ceeds
s' sight on Amsterdam finished on Friday
Banker
said:
m
National Bank of Belgiu
against 40.15 on Friday of last week;
"At the close of 1931 the National Bank of Bel- at 40.27,
rs at 40.28, against 40.16, and comtransfe
cable
gium showed roughly as strong a position as at the
bills at 40.05, against 39.90. Swiss
l
sight
mercia
in
g
the
end of 1930 but with considerable shiftin
19.50k for checks and at 19.5 WI
at
closed
francs
y
liabilit
and
various sections of both the assets
transfers, against 19.503/2 and 19.51.
sides of the balance sheet, due in part to the general for cable
Copenhagen checks finished at 19.00 and cable transdepression and in part to the sterling crisis.
against 19.20 and 19.25. Checks on
"Just prior to the fall of the pound from the fers at 19.05,
closed at 19.30 and cable transfers at 19.35,
gold standard, the Bank changed its entire vis- Sweden
and 19.40, while checks on Norway
ible foreign exchange portfolio of 4,300,000,000 against 19.35
18.80 and cable transfers at 18.85,
Belgian francs into gold, thus avoiding the big finished at
and 19.00. Spanish pesetas closed
losses on sterling which have been absorbed by against 18.95
for bankers' sight bills and at 8.353/ for
the central banks of France and Holland. Never- at 8.35
against 8.423/i and 8.43.
theless, the Belgian Bank still holds sterling values cable transfers,
hidden elsewhere in the portfolio-on which losses
Exchange on the South American countries preare estimated at 300,000,000 francs. The entire
pments since the time of the
cover against sight engagements is now shown in sents no new develo
many of the South American
so
when
crisis,
British
gold only and amounts to 66% or approximately
countries declared moratoria. For the most part
the same percentage as one year ago."
nominally quoted. On Jan. 19 the
The Czechoslovak Finance Minister, according to these units are
nment imposed emergency taxes on
recent press dispatches, has announced further cur- Argentine Gover
ty, and business, to be retroactive
rency restrictions as a result of the adverse effect incomes, proper
e Uriburu, Minister of Finance,
Enriqu
1.
Jan.
on Czechoslovak trade of the financial restrictions from
taxes, said that Argentina is a
new
the
ing
discuss
imposed by her neighbors. The Minister said that in
y and a moratorium is unthinkable. He
it has become necessary to restrict allotments of rich countr
a balanced budget is essential. The new
foreign exchange for import payments. For the stated that
m, he added, will not only accomplish
time being all future applications for foreign ex- taxation progra
should yield a surplus for reduction
change must be for vital necessaries, such as food- this object, but
g debt.
stuffs, and will be subject to rigorous examination of the floatin
pesos closed on Friday at 25 15-16
paper
ine
Argent
ons
endati
d
their
recomm
forwar
will
by experts, who
against 25 15-16 on Fiday of
bills
sight
for bankers'
to the National Bank.
at 26 1-16 for cable transfers, against
The London check rate on Paris closed at 87.40 last week, and
Brazilian milreis are nominally quoted 5.95
on Friday of this week, against 88.43 on Friday of 26.00.
s' sight bills and 6.00 for cable transfers,
last week. In New York sight bills on the French for banker
6.00. Chilean exchange is nominally
centre finished on Friday at 3.93, against 3.92% against 5.95 and
123', against 123/s. Peru is nominally quoted
on Friday of last week; cable transfers at 3.93%, quoted
against 3.93, and commercial sight bills at 3.9332, 27.80, against 27.81.
against 3.92 8. Antwerp belgas finished at 13.943
Exchange on the Far Eastern countries, while
for bankers' sight bills and at 13.95 for cable transof importance since the
fers, against 13.883' and 13.89. Final quotations presenting no new angles
in December, is of
gold
of
for Berlin marks were 23.64 for bankers' sight bills Japanese suspension
to the dissolution of the
and 23.66 for cable transfers, in comparison with interest this week owing
calls for new elections on
23.73 and 23.75. Italian lire closed at 5.029 for Japanese Diet, which
has been expected for some
bankers' sight bills and at 5.03 for cable transfers, Feb. 20. This step
been increasingly apparent that the
against 5.07 and 5.0714. Austrain schillings closed time, as it has
not strong enough to hold the
at 14.12, against 14.12; exchange on Czechoslovakia Seiyukai Party is
following the overthrow of the
at 2.963/2, against 2.963/2; on Bucharest at 0.593/2, position gained
on December 10. Premier
nment
Gover
against 0.59 8; on Poland at 11.25, against 11.25, Minsieto
been counting upon the support of
and on Finland at 1.45, against 1.50. Greek ex- Inukai had
Adachi, who had bolted from the Minsieto
change closed at 1.28% for bankers' sight bills and Kenzo
apparently bringing with him enough folat 1.28% for cable transfers, against 1.28% and Party,
balance of
lowers to insure the maintenance of the
1.28%.
following,
's
Adachi
Mr.
ai.
power by the Seiyuk
FINANCIAL CHRONICLE
JAN. 23 1932.]
however, dwindled to ten, which was not sufficient
to maintain the Government in power on a vote of
confidence. To avoid an overthrow of the Government it was therefore necessary to dissolve the
Diet and call for new elections. The Minsieto
Party promises to encourage rationalization of business, to expand the export indemnity system, and
to stabilize exchange. This party will also conduct
an intensive campaign against the gold embargo,
which they claim has penalized the whole Nation
for the benefit of a small number.
Closing quotations for yen checks yesterday were
37.00, against 37% on Friday of last week. Hong
Kong closed at 25/®25.70, against 25%@25 13-16;
Shanghai at 33.00, against 33%@34; Manila at 49/,
3
against 49%; Singapore at 41M, against 4O/;
Bombay at 26 3-16, against 26 7-16, and Calcutta
at 26 3-16, against 26 7-16.
Pursuant to the requirements of Section 522 of the
Tariff Act of 1922, the Federal Reserve Bank is now
certifying daily to the Secretary of the Treasury the
buying rate for cable transfers in the different countries of the world. We give below a record for the
week just passed:
FOREIGN EXCHANGE RATES CERTIFIED BY FEDERAL RESERVE
BANKS TO TREASURY UNDER TARIFF ACT OF 1922.
JAN. 16 1932 TO JAN. 22 1932, INCLUSIVE.
Country and Monetary
Unit.
Noon Buying Rate for Cabe Transfers in New York.
Value in United States Money.
Jan. 16. Jan. 18. Jan. 19. Jan. zu. Jan. 21. Jan. 22.
EUROPE$
Austria.schilling
139192
Belgium, belga
138960
Bulgaria, ley
.007150
Czechoslovakia. kron .029625
Denmark, krone
.191888
England, pound
sterling
3.489702
Finland. markka
.014818
France,franc
039355
Germany, relchlimark .237155
Greece, drachma
.012882
Holland, guilder
.402345
.174604
Hungary, Pengo
Italy, lira
.050553
Norway, krone
.189705
.111935
Poland, zloty
.031825
Portugal, escudo
Rumania, lea
005947
Spain, peseta
.084442
.193400
Sweden,krona
Switzerland, franc--- .195120
Yugoslavia, dinar__ .017775
ASIAChinaChefoo tael
.345000
Hankow tael
.334687
Shanghai tael
.329375
Tientsin tael
.348668
Hong Kong dollar
.250833
Mexican dollar
.237812
Tientsin or Pelyang
dollar
.241666
Yuan dollar
.238750
India, rupee
.262083
Japan, yen
.370892
Singapore (8.8.) dollar .402500
NORTH AMER..846250
Canada. dollar
.999300
Cuba, peso
Mexico. peso (silver)_ .395400
Newfoundland, dollar .844000
SOUTH AMER.Argentina, peso (gold) .581889
.061431
Brazil, milreis
.120500
Chile. peso
.449333
Uruguay, peso
.952400
Colombia. peso
$
.139556
.139197
.007150
.029628
.191093
$
.139539
.139210
.007150
.029616
.189916
3.471309
.014925
.039358
.236178
.012882
.402430
.174614
.050305
.189182
.112028
.031825
.005948
.084410
.193233
.195247
.017806
3A51250
.015033
.039352
.235430
.012870
.402355
.174566
.050061
.187616
.111935
.031775
.005951
.084285
.193127
.195155
.017784
$
$
$
.139535 .139542 .139539
.139268 .139210 .139318
.007150 .007150 .007150
.029827 .029628 .029628
.190044 .190183 .189911
3.463333
.014777
.039329
.235785
.012864
.402245
.174504
.050298
.188076
.111921
.031750
.005952
.084317
.193266
.195205
.017781
3.454375 3.448630
.014717 .014710
.039350 .039377
.236350 .236505
.012884 .012879
.402185 .402470
.174416 .174566
.050222 .050253
.188050 .188005
.111862 .111942
.031650 .031650
.005950 .005947
.084170 .083502
.193205 .193044
.195875 .195152
.017784 .017786
.339791 .339583 .339583
.329843 .329687 .329687
.323482 .324375 .324791
.341458 .341666 .341666
.248035 .247812 .247187
.233125 .234375 .233750
.338958 .340000
.329843 .331250
.324687 .326875
.341041 .342083
.247916 .248125
.233125 .233750
.237916
.235000
.260000
.368071
.402500
.239186
.236250
.260312
.369218
.400000
.238333
.235416
.260416
.370000
.401250
.239166
.236250
.260833
.371714
.406875
.239166
.236250
.259375
.368906
.399375
.847695
.999268
.395400
.845250
.860902
.999268
.394000
.858000
.865110 .851323
.999300 .999300
.394066 .393116
.883000 .848500
.854264
.999300
.391586
.851250
.582375
.061681
.120500
.450500
.952400
.582394
.081681
.120500
.450500
.952400
.582141
.061493
.120500
.450500
.952400
.581762 .582203
.061431 .061493
.120500 .120500
.450500 .453833
.952400 I .952400
The following table indicates the amount of bullion
in the principal European banks:
Jan. 21 1932.
Jan. 22 1931.
Banks ofGold.
Is Silver.
I
Total.
Gold.
Slicer.
I
Total.
£
£
£
£
121,321,171 142,881,766
England _ _ 121,321,171
142,861,766
558,774,581435,301,676
France a-- 558,774,581
d
d
435.301,676
Germany b 42,716,250 c994,600 43,710,85099,529,900
994,600100,524,500
Spain
89,911,000, 20,587,000110,498,000 97,599,000 27.94900 125,548,000
60,854,000
60,854,000 57,297,000
Italy
57,297,000
Netherrds 73,294,000 2,203,000 75,497,000 35,510,000 2,004,000 37,514,000
72,853,000 39 222,000
Net. Belg- 72,853,0O0;
39,222,000
SwitzerPd_ 61,042,000
61,042,000 25,757,000
25,757,000
Sweden_ __ 11,435,000
11,435,000 13,377,000
13,377.000
8,015,000,
Denmark
8,016,000 9,558,000
9,558,000
6,559,000,
6,659,000 8,134,0001
Norway 8,134,000
I
Tot. wk.11067750021 23,784,600 1130559602964,147,342 30,947,660995,094.942
Prey. week 1102828 061 23,894,600 1126722661 963,213,505 30,968,600994,180,105
a These are the gold holdings of the Dank of France as reported in the new form
of statement. b Gold holdings of the Bank of Germany are exclusive of gold held
abroad, the amount of which the present year is £5,595,800. c As of Oct. 7 1924.
d Silver Is now reported at only a trifling sum.
559
What Next with Reparations and Debts?-The
Franco-German Impasse.
When the history of reparations and war debts
comes to be written, the historian will be likely to
point out, among other things, the dramatic turns
which the long controversy has from time to time
taken. There have been many such episodes since
the Treaty of Versailles became operative, and they
have seemed to multiply rather than grow less. The
past two weeks have witnessed no less than three
of these dramatic moments. The first came on
Jan. 9, when Chancellor Bruening announced that
Germany had reached the end of its ability to pay
reparations, and that no compromise looking to a
mere mitigation or readjustment of payments would
be worth while considering in the conference at
Lausanne. The second came ten days later, on
Tuesday, when Premier Laval, in presenting his reconstructed Ministry to the Chamber of Deputies,
announced that France would not give up its right
to reparations. The third, which followed naturally
from the second, came on Wednesday night in the
announcement by the British Foreign Office that
the conversations which had been taking place between the Governments concerned in the Lausanne
conference had not been concluded, and that the
meeting of the conference which it had been expected
would begin next Monday would have to be postponed.
Back of these last two events lie some circumstances which help to explain their significance. It
was known, before the former Laval Ministry resigned, that the Anglo-French conversations were
not bringing agreement between the two Governments regarding the policy to be pursued in face
of the German ultimatum, and that the apparent
disposition of the British Government to concede
much force to the German contention was irritating to France. The situation in this respect was not
improved by evidences of some slight shifting of
position on the part of the British Government, nor
by reports from London of criticism in financial
circles of what was regarded as the hesitating course
of the Government. In France, on the other hand,
Chancellor Bruening's statement had had the effect of strengthening, to an appreciable extent at
least, the demand for adherence to the Young Plan,
and even those party groups which had appeared to
favor concessions to Germany underwent some
change of heart when Germany at last drew the
line. Before M. Laval led his Ministerial associates
into the Chamber on Tuesday he knew, as did everybody else, that his Government would have small
chance of survival if either the substance or the
form of the German demand were conceded. When,
accordingly, in his speech, he declared that "we
shall not accept for future solutions things which,
while powerless to dispel the crisis, will hurt France
in her essential interests, and in her rights affirmed
in freely accepted treaties," that "we shall not permit the right of reparations to be taken away," and
that the duty of France toward the generations which
suffered from the war was "to sacrifice nothing
of
our credit without a corresponding remission
of
our own debts," and toward future generations
"to
subordinate all agreements to a just balance
of the
conditions of production and existence," he
said what
French political opinion, with more
unanimity than
has sometimes been shown of late,
expected him to
say.
560
FINANCIAL CHRONICLE
There is every reaSon to believe that M. Laval's
uncompromising repudiation of the German demand,
and his reiteration of the contention that reparations
and debts must go hand in hand, was due in part to
his knowledge of the official attitude of the Hoover
Administration as set out in a secret memorandum
handed to Ambassador Claudel at Washington some
three weeks ago, but carefully kept from the public
until the Paris "Figaro" published a summary of
its text on Wednesday. According to the summary
as given in a Paris dispatch to the New York "Times"
on that day, the memorandum included five points:
"1. There is no connection between war debts and
reparations. 2. The European Powers must take
the initiative on reparations. 3. A demand for a
new debts moratorium could not obtain approval
in Congress, and the Senate opposes a cancellation
or reduction of the debts. 4. The United States
Government would look with displeasure on the
formation of a united front by the debtor nations.
5. The existing debt arrangements, having been concluded separately, can be eventually revised only
by separate accords."
With the exception of the fifth point, the foregoing summary appears on its face to contain nothing except what the United States has several times
affirmed regarding its attitude and a restatement
of the policy of Congress as set forth when the Hoover
moratorium was approved. The Paris correspondent
of the New York "Evening Post" observes, with some
justice, that "the mystery of the memorandum is
Why Washington did not make it public." Its publication in summary form on Wednesday appears
to have been due to the statement of the American
position regarding an extention of the Hoover moratorium, made known through Ambassador Edge
on Tuesday in response to an inquiry from
M. Laval. According to the Paris correspondent
of the New York "Herald Tribune," M. Laval
was informed that "any further American action"
regarding international debts was "conditioned
upon previous agreement among the European
reparations Powers." "This agreement," the dispatch continues, "is far from being achieved, but
the attitude of the United States is understood
to be that no urgent necessity exists for haste in
settlement of the problem, since the next instalment
of annuities to America is not due until Dec.15 1932."
The fifth point in the American memorandum
seems clearly to imply that while the United States
would resist any concerted move on the part of its
European debtors to reopen the debt question, it
would not turn a deaf ear to representations that
were made by the debtors separately. That the
Administration, in spite of the declared policy of
Congress, is even now dallying with the debt issue
is suggested by some remarks in a Washington dispatch on Tuesday to the New York "Times." Speaking of the sudden substitution of Secretary Stimson
for Ambassador Dawes as a delegate to the disarmament conference, the correspondent writes that
while denial was made "that the selection of Mr.
Stimson to go overseas indicated any intention on
his part or on the part of the Administration to
open the way for discussions there of governmental
debts or reparations," Mr. Stimson would nevertheless meet at Geneva the Prime Ministers of Great
Britain, Germany and France and the Foreign Minister of Italy, and that "it was admitted that it
might be difficult for Mr. Stimson to avoid discus-
[VoL. 134.
sions on other topics than armament limitation, but
these discussions, if any are held, will be informal,
it was said, and any formal discussions, particularly
on governmental debts and reparations, will be held
in Washington, where a high official declared that
they should be held." In other words, the Secretary
of State will be on hand, and while he may not raise
the issue himself,he can probably be induced to listen
if anyone else raises it.
The response of the German Government to M.
Laval's speech has been thus far only a reaffirmation
of Chancellor Bruening's position. An extension of
the Hoover moratorium for a year, the British Ambassador at Berlin was told on Wednesday, would
be equivalent to conceding the French contention,
whereas Germany insists that the Young Plan is no
longer applicable and that a definite settlement of
the whole question should now be made. The suggestion that the difficulty might be adjusted by issuing bonds against the German railways, and
applying the proceeds of their sale to the cancellation of reparations, appears to be entirely unofficial.
It could hardly be otherwise if Chancellor Bruening
intends to adhere to the stand he has taken, since
the bonding of the railways would merely effect a
shifting of the reparations load when Germany insists that it must be thrown off altogether.
The debate on M. Laval's speech in the Chamber
of Deputies, which ended on Friday with a vote of
303 to 265 in favor of the Government, appears to
have been notable chiefly for its unexpected moderation. Without concealing their disappointment at
the attitude of the United States as shown in the
Stimson memorandum, the spokesmen of the various
parties contented themselves,for the most part, with
expressions of regret that the United States still held
aloof from European councils, and with insistence
upon preserving the claim to reparations however
much the amount or method of payment might be
modified. There was nothing in the debate to suggest
that M. Laval would not have, in general at least,
the backing of all the important parties in maintaining the French thesis at Lausanne if the conference actually meets, and even the spirited attack by
former Premier Herriot upon the United States for
its isolation policy merely strengthened M. Laval's
position. On the other hand,the debate was of much
less importance than it might have been if a general
election had not been near. With only about three
months of office remaining, party leaders are
cautious about committing themselves to anything that might embarrass them in the coming
electoral campaign. This is especially true of the
parties of the Left, whose leaders believe, with
some show of reason, that public opinion has
swung strongly in their direction, and that the election may oust from power the Right and its coalition
supporters. Chancellor Bruening and his Cabinet,
it should be noted, are under no such handicap,
for while it is possible that the course of events
may turn them out of office, the Chancellor has
made it impossible for any succeeding Government,
'however hostile it may be to the present regime,
voluntarily to reinstate reparations in a Government
program.
It is probable that the Lausanne conference, after
some delay, will be held, not because of the likelihood of substantial agreement between Great Britain
and France regarding the German demand, but
because it is obvious that things cannot go on in-
JAN. 23 1932.]
FINANCIAL CHRONICLE
561
the usual practice of the Treasury Department. i.e.,
virtually forcing short-term Treasury issues upon
the banks of the country—with the aid, where necessary, of the Federal Reserve banks. Common report
in financial circles is positively to the effect that
the latter method of procedure will be employed in
this instance also. Indeed,it would hardly be going
too far to say that this is taken more or less for
granted.
(2) As to the rest of its capital, the Corporation
may, with the consent of the Secretary of the Treasury, simply issue its obligations and hand them over
to the United States Treasury for cash; it may issue
and sell its obligations to the general public for cash;
conceivably it may prefer, as is its right under the
terms of the measure reported by the Senate and
House conferees, simply make its loans (apart from
those made from the funds obtained from the Treasury in return for its capital stock) not in cash but
in the form of its own obligations, leaving it to the
borrower to obtain cash as best he may in case he
needs it; or it may proceed with some combination of
these methods, which may well prove to be what it
actually will in practice do.
Since the obligations of the Corporation (although
without qualification guaranteed by the United
States Treasury) are not acceptable at the Reserve
T e Lines Along Which the econstructio
banks as collateral for loans to member banks, and
Finance Corporation Is likely to Work.
are not eligible for purchase by the Reserve banks,
The Reconstruction Finance Corporation measure they would have to bear a much higher rate of interhaving become a reality it will be interesting to indi- est than do Government issues in order to be attraccate in a general way the lines along which the tive as investments for the banks. But since they are
Corporation is likely to operate, and to suggest in the equivalent, as to security, of governments and at
a broad way the possibilities of good and the danger the same time do not carry any special features, such
of harm inherent in the new undertaking.
as eligibility, to give them a unique standing at the
Aside from what are commonly termed psycho- banks that they do not possess for the ordinary inlogical benefits of which a great deal—we sincerely vestor, they ought to be peculiarly well-suited media
hope not too much—has been made, the nature of through which to appeal to the investor with hoarded
the results of the operations of the Corporation de- cash or inactive bank balances. It is the belief of a
pend upon (1) the sources from which it obtains its good many whose judgment ought to be excellent that
funds, and (2) the use to which these funds are put. these obligations'bearing a reasonable rate of interest •
Exploration of the modes of procedure possible under could be made to serve the excellent purpose of drawthe measure as it is likely to reach the statute books ing idle funds into active work.
is instructive.
Let us now turn to the use to which these funds
The share capital of the Corporation is to be pro- are to be put. A sum, in amount not less than
vided solely by the United States Treasury. The $50,000,000 or more than $200,000,000, is to be placed
amount is $500,000,000. Obligations, of a somewhat at the disposal of the Secretary of Agriculture to be
varied sort, but none to run longer than five years, loaned at his discretion to farmers in need of credit
are authorized in the maximum amount of $1,500/ for their ordinary farm operations during 1932.
000,000. These obligations are not eligible either Another sum, in amount not to exceed $300,000,000,
as collateral for loans from the Federal Reserve may be allocated to the work of relieving depositors
banks or for purchase by the Reserve institutions. in failed banks. The remainder of the funds of the
They may, however, be purchased in unlimited Corporation (amounting,if and when full advantage
amounts by the Federal Treasury, which, in turn, is is taken of the 'borrowing power vested in it, to
empowered to raise funds for that purpose by the $2,000,000,000 less the $200,000,000 allocated to the
sale of its own obligations which, of course, would Secretary of Agriculture and less whatever part of
be eligible for purchase by the Reserve banks and the $300,000,000 that may go to aid depositors of
as collateral for loans to member banks. The obliga- failed banks is actually so used) may be loaned at
tions of the Corporation may, however, be offered the discretion of the Board of Directors to banks,
directly to the investing public, and the rate of savings banks, trust companies, building and loan
interest upon such bonds and notes is left entirely associations, insurance companies, mortgage loan
to the discretion of the Secretary of the Treasury and companies, credit unions, Federal Land Banks, Joint
the Board of.Directors of the Corporation. So far Stock Land Banks, Federal Intermediate Credit
as the raising of capital funds is concerned, then, this Banks, agricultural credit corporations, livestock
makes the situation about as follows:
credit corporations, organized under the laws of any
(1) The $500,000,000 to be provided by the United State or of the United States, and to the
railroad
States Treasury, representing the entire capital companies when these latter, in the judgment of
the
stock of the Corporation, may be provided either by Board of Directors of the Corporation are unable
to
sale of Treasury obligations to the general public obtain funds upon reasonable terms through
banking
•or by the method that has unfortunately of late been channels or from the public. Enough has
now been
definitely as they are. As matters stand now,France
needs the conference quite as much as does Germany.
M. Laval may insist, as he did in his speech, that
reparations and debts are not the only causes of
the world wide depression, and that in any case it
is impossible to do anything about reparations unless the United States is prepared to cancel or reduce the debts, but an overwhelming body of opinion
has reached the conclusion that the prolongation of
the controversy is contributing directly to the prolongation of the depression, 4nd that for such prolongation the obstructive tactics of France are primarily responsible. It would be well for France, and
for other European countries also, to accept the
fact that American public opinion will not tolerate
any attempt to bind 'together reparations and war
debts, or allow either the legal or moral obligation
of the debt settlements to be called in question. It
is for Europe to settle with Germany on any terms
that may be found practicable. It will then remain
to be seen whether Germany, freed from the
throttling hand of its political creditors and aided,
to such extent as may be necessary, in managing its
commercial credits, may not open the way to general
economi,c recovery and a much-to-be de 'red gime
of pj.t1cal stability.
\\a
562
FINANCIAL CHRONICLE
[Var. 134.
said to make it clear that the funds of the Corpora- liquidated only over a long period of time. Should
tion will in some undesignated and as yet rather the Reserve System go further than is needed merely
unpredictable proportion be devoted to (a) carrying to enable ordinary commercial banks to absorb Govlong-term investments,such as mortgage loans, bonds ernment issues to provide capital for the Corporaand other obligations representing fixed capital in- tion it would, by increasing the reserves of the memvestments, or shorter term paper which must sooner ber institutions disproportionately, enlarge the
or later be funded into long-term obligations, and funds available for lending by the commercial banks
(b) providing commercial banking accommodations of the country. If this inflated lending power of the
to individuals and firms unable for one reason or commercial hanks should then be employed unwisely,
another to obtain such facilities through regulai that is to say, in making loans that are not truly
liquid and do not represent really short-term comchannels.
The vital significance of the source from which the mercial needs of safe and sound business operations,
funds of the Corporation are in the first place derived the results could of course be simply disastrous.
But a substantial part of the funds of the Corporanow becomes apparent. To the extent to Which the
tion
funds,,
ought, one would suppose, go either directly or
furnish
these
themselves
commercial banks
and to the extent the moneys thus provided are em- through the Secretary of Agriculture into really
ployed directly or indirectly in taking over long-term short-term commercial banking types of loans. One
commitments from the banks, the net effect of this danger here is that the Department of Agriculture
rather involved set of transactions is to leave the will not turn out to be a wise commercial banker.
commercial banks, taken altogether, in possession of Inexperience in such matters and the pressure of
Government obligations in place of the somewhat less politics may result in many loans being made which
liquid and much less shiftable long-terra assets they are not only illiquid but perhaps not even "good."
now hold. This would mean that the commercial The same may well prove to be true of advances made
banks, again viewed as all lumped together, would to some of the supposedly commercial borrowers
be in what is popularly termed a more liquid con- directly by the Corporation itself. However, neither
dition (since Government bonds are more salable the Corporation nor the Department of Agriculture
than other long-term obligations, and, what is of can under the arrangements to be set up lend more
much greater importance, can be used effectively at than they receive, that is to say, they are not empowthe Reserve banks) and in a position to defend them- ered as are member banks to lend largely to cusselves to better advantage in case of large with- tomers on the basis of a relatively small reserve held
on deposit at the Reserve banks, although the funds
drawals by depositors.
practice
another
advantage
of
In actual
substan- thus advanced may, and in large degree doubtless
tial importance is likely in one degree or• another to will, in practice find their way to the commercial
emerge. That benefit grows out of the fact that the banks where they could be employed as reserve for
individual bank that provides the funds by the pur- lending on the part of member banks. Certainly it
Chase of Government bonds may not be, and in prac- may be safely said that if funds obtained directly or
tice often will not be, the same institution that indirectly by the process of mere book entries at
receives the advances from the Corporation. The the Reserve banks, or for that matter at the member
stronger banks, many of which have hesitated to banks, are employed for the purpose of taking on
come to the aid of weaker or threatened banks further burdens of uncommercial commitments, for
directly, would probably take up Treasury issues, speculating in either securities or commodities, or
the proceeds of which would go to relieve these for mere hoarding purposes by individuals or conweaker members of the banking fraternity. In other cerns, our last state is likely to be much worse than
words,one effect of the operations of the Corporation the first.
The ideal toward which those charged with the
under conditions here assumed would probably be
—to what extent it would be very difficult to deter- operation of the Corporation ought,it would seem,to
mine in advance—to induce the stronger banks to aim is that of obtaining working funds from bonacome indirectly to the aid of the weaker ones, a con- fide long-term investors who now carry idle funds
summation long desired in one form or another by either on deposit or else in hiding places, and to use
these moneys for the purpose of taking off the hands
many careful observers.
This whole matter of the ultimate effect of the of commercial lending institutions some of the assets
Corporation taking over so-called frozen assets from they now have which are not suitable for their portthe commercial banks is of first rate importance,for folios because of their non-liquid character. Such a
it is more than probable that a very substantial pro- policy to the extent that it was successful would
portion of the assets of the Corporation, perhaps it serve the double purpose of putting idle funds to
would not be going too far to say that the larger rtasks suitable for them and of releasing banking
part of the assets of the Corporation will in the end funds that are now "tied up" for employment in
be found to have been devoted in one way or another ways that are much more suitable for funds held on
to the work of relieving banks of slow assets they demand deposit. It ought moreover to be able to
now carry or of rendering it unnecessary for them to accomplish a good deal in the way of stopping bank
make further loans of this variety in order to prevent failures and consequently of restoring confidence
bankruptcies of going and in other respects solvent which is so lacking now and so much needed—conficoncerns.
dence not only on the part of hoarders but in the
At this point it is well to add that to the extent breasts of bankers and business men generally. To
that the funds devoted to purposes of this sort are in give practical effect to this general line of policy it
the last analysis obtained from the Federal Reserve would be necessary to issue obligations bearing a
banks, the net effect will be to freeze this central really attractive rate of interest and to make an
reservoir of commercial banking funds, which ought effort to place them in the hands of long-term into be kept as liquid as possible at all times, with com- vestorg who do not now trust most ordinary kinds
mitments which in the nature of the ease can be of securities and cannot find really gilt-edged obliga-
JAN. 23 1932.]
FINANCIAL CHRONICLE
gations that yield enough to attract them. The law
under which the Corporation will function leaves
the way wide open to those in charge to formulate
and adopt such a policy.
Gov. Roosevelt of New York Proposes $3,500,000 Farm
Aid—Recommends to Legislature Program for
Roads and Rural Credit Corporation—Emphasizes
Need of Demonstration Farm-to-Market Roads at
Agricultural Dinner—Plan for Credits Involves
Revising Four Statutes—Secretary Hyde Stresses
Crop Limitation.
A program of aid for New York State farmers, by inference
applicable to those of the Nation, through the establishment
of rural credit corporations and farm-to-market roads, was
set forth by Governor Roosevelt on Jan. 20.
In a special message to the Legislature and in an address
delivered at the hundredth anniversary dinner of the State
Agricultural Society, says a dispatch from Albany to the
New York "Times," the Governor stressed the need of coordinated planning of farm aid. The Secretary of Agriculture, Arthur M. Hyde, also spoke at the dinner. From the
"Times" we also quote as follows:
4563
case local labor would be given the preference and the use of its own or
rented equipment.
"Third, the roads to be so improved would be selected by the Superintendent of Public Works upon the suggestion or approval of the State
,d
State College of Agriculture and with the consent of local authorities.
"Fourth, that the mileage to be built in any one county shall be the
same in relation to the total mileage to be built as is the mileage of rural
roads outside the State system in that county to the total of such mileage
in the State.
"Fifth, that the Highway Department shall be charged with the continued maintenance of these demonstration roads.
"The costs of the experimental roads of this type built by the Highway Department have ranged from $3,640 a mile to $8,582 a mile It
has been estimated for me by Commissioner Brandt that a highly satisfactory type of rural road can be built for not to exceed $5,500 a mile.
This would be a gravel or stone road in most cases, with surface treatment applied after it had been under traffic for a year. At this average
cost we should be able to build 636 miles of these roads this year with
a $3,500,000 appropriation, which means a little more than 10 miles to
the county.
Comparison for Taxpayers.
"When we consider that on the average there are approximately 1,300
miles of rural road in each county of the State, it can be seen that this
program does not by any stretch of the imagination mean taking rural
road construction out of the hands of the counties and towns.
"It does distinctly mean putting the State Highway Department into
competition with the local road-building authorities to demonstrate which
can do the best and most economical job of rural road building. It will
give local taxpayers an opportunity to judge whether they are getting
the worth of their money, and it should result in the working out of far
better methods of farm road construction in the State, methods which
may not bear quite so heavily on the rural taxpayer as those of to-day.
"I think my purpose in asking that the State College of Agriculture shall
The Governor's proposal for "getting the farmer out of the mud" called have a voice in determining where these roads shall be built will be enfor expenditure by the State of $3,500,000 for 636 miles of special type tirely plain to you. I want definitely to hook up rural road building with
hard surfaced rural roads, perfected by State highway experts. The the soil and economy survey of which I spoke earlier in this address.
program he laid down would require no increase in the total of State ex"This road project which I am laying before you to-night and which I
penditures.
have asked the Legislature to approve is in fact a unit in a program inThe recommendation to the Legislature of measures allowing the crea- tended to give intelligent direction to the development of the farming
tion of rural credit corporations was based on a proposal of the Governor's regions of the State. The aim is to stabilize agriculture so far as possible
Agricultural Advisory Commission, headed by Henry Morgenthau Jr., and to eliminate some of the needless tragedies which are incidental to
Conservation Commissioner. Proposed changes in various laws would economic changes.
permit the formation of rural credit corporations in regions where unusual
"If it be true that people left the country districts in part because of
conditions in recent months have stripped the farmer of ordinary banking poor transportation difficulties, it is, I think, a sound guess that thousands
facilities.
of them will return to villages and farms if we can improve communication
Points to Current Examples.
by highway.
"There are two essentials to this improvement: First, there must be
Maintaining that unrelated efforts to insure all year around transportasnowbound in
tion for rural areas through the construction of hard surfaced roads had some guarantee that the roads will be kept from being
mud
been extravagant and unfruitful, the Governor in addressing the Agricul- the winter months, and, secondly, there must be a guarantee that
tural Society described the benefits to be gained by definitely co-ordinated and mire will be replaced by hard surfaces.
"I am sufficiently optimistic to be very certain that the Legislature will,
efforts. He mentioned the general agricultural survey being carried on
by the State College of Agriculture in the interest of soil utilization and the in accordance with these recommednations, pass the first practical legisextension of the reforestation program as instances of the success of pro- lation this winter to solve the problem of mud roads. If this State can
show the way in this great practical reform I shall be very happy, because
jecting connected plans simultaneously.
He reviewed the broad aspects of his general agricultural readjustment our example will without question be followed by many of our sister
plan,linking it to population shift and the establishment of a better balance Commonwealths.
between rural and urban populations. Pointing out that the $3,500,000
"In the long run, if this policy is adopted throughout the nation we shall
proposed for the special rural roads could merely be shifted from the lump have brought the producer closer to the consumer and at the same time
sum allotted for highway construction without the need of any addition we shall have done something toward relieving a national condition of
to the budget, he continued:
unemployment by restoring the balance between city and country."
"Recognizing the fact that the State is legitimately concerned with
Message to Legislature.
the problem of improving and making more efficient rural road construction, the Legislature at my request three years ago appropriated $100,000
In his message to the Legislature, recommending revisions to four statutes
for the use of the State Highway Department in the experimental construc- to permit the creation of rural credit corporations, the Governor said:
tion of rural market roads.
"I believe these amendments will make possible formation of rural
"The Highway Department has been carrying on its experiments since credit corporations to finance operations of farmers in those regions of
that time. It has tried out plain gravel roads, field stone roads and com- the State where the usual banking facilities do not exist, by reason of'
binations of these with various sorts of surface treatment. Careful ac- the closing of banks or lack of funds in banks to meet seasonal needs.
count of the cost of each type has been kept and there has been constant Our statutes do not now permit the formation of credit corporations to,
take advantage of the rediscount facilities offered by the Federal Interobservation of their endurance under traffic.
"The Highway Department has now adequate information on which it mediate Credit Bank.
could proceed to build on an economical basis and on a broader scale a
"Such corporations will provide additional credit facilities, now so badly
series of roads which would be demonstration roads rather than merely needed by the farmers of the State. Time is of the essence in this matter,
experimental roads.
by reason of the necessity of setting up the corporation structures and
"It seems to me that is a logical next step. I think that if the State Providing the necessary machinery in time to take care of this spring's
should build through the Highway Department—not through any indirect farming operations."
State-aid process—ten miles or more in each county of the State of inexTwo of the proposed revisions would amend the co-operative corpopensive rural market road of an approved type to replace dirt roads, it rations law to authorize credit corporations to be owned either by marketing
would have a powerful influence in reforming road-building methods in organizations or farmers. A third would amend the stock corporations
the rural towns and introduce a new spirit of emulation and rivalry in law to permit such corporations to discount farmers' notes with the Federal
good road building throughout the State. Besides that, it would add Credit Bank, and the fourth would amend the banking law to allow thesubstantially to the mileage of improved road available to the farmers State to own stock in credit corporations for this purpose, within limits Loof the State.
be determined later.
Details of Road Program.
Secretary Hyde's Address.
"Consequently, I have to-day made a proposal substantially along these
Secretary Hyde also recommended organized planning on a wide scalelines to the Legislature: First, that approximately $3,500,000 out of
State to meet agricultural problems. Asserting that the National Government
highway funds, available from the motor fuel and motor vehicle taxes, had begun a movement of this kind about eight years ago, he continued:
be diverted to the construction of these demonstration rural roads, the
"Our traditional national policy of planless agricultural development
amount so appropriated to be deducted from the funds for new construction should be replaced without delay by a program based upon such a utilizaof State highways.
tion of our land resources as will yield greater economic and social values.
"We are now well ahead of schedule on State highway construction,
conserve our land inheritance
Stay erosion and soil depletion, preserve and
and this deduction will permit us to do the one-seventh of the construction and limit our agricultural plant to such size as will supply the nation's
of State highways which remains to be done in the next seven years in needs, without the ruinous blight of overproduction.
order that the program shall be maintained.
"The cure for overproduction is production balanced to market demand.
"Second, that these new roads shall be built by the State Highway That is the cure adopted by industry, and that is the cure that agriculture,
Department, either by contract or by direct employment of labor, in which now that it has become an Industry, must likewise adopt"
Bank Clearings in 1931 and the Course of
Trade and Speculation
The calendar year 1931 was a period of intense
business depression from beginning to end, and,
naturally, records .of bank clearings (or bank exchanges), which are trade indicators of no mean
character, reflect that fact. All the country's industries were in the grip of the paralysis which began
to settle over the country towards the close of 1929,
and no relief was experienced from the prostrating
influences that were operating to that end and from
whose combined force in diminishing trade and reducing the volume of business activity to the lowest
level seen in years, no escape could be found.
564
FINANCIAL CHRONICLE
Fou 134.
At the beginning of the year there was still some the total production of soft coal in the United States
doubt among a few of those who make a study of during the calendar year 1931 (including lignite and
such subjects and regard themselves as experts in coal coked at the mines) is estimated at 378,110,000
the matter,and who usually take kindly to the desig- net tons. This compares with 467,526,000 net tons
nation of "economists," as to whether the country in the calendar year 1930, and with 534,989,000 tons
was passing through a commercial and financial in the calendar year 1929. This is a falling off of
crisis which might be termed a major one or was over 156,000,000 tons in two years. If, however, we
to be considered simply as one of those minor set- go back to 1926, when the output of soft coal was
backs with which every country has to contend every 573,367,000 tons, it is seen that as compared with
few years in the ordinary course. At the close of that year the falling off has been over 195,000,000
the year there was no one left who had the least tons. This most assuredly furnishes an idea of the
doubt on that point. The facts were so overwhelm- extent to which coal mining, by reason of the busiing in establishing the period as one of the very ness depression as its main cause, has dwindled and
worst in the country's history, with gloom and shrunk. In addition, however, the mining of hard
despair and distress of a very acute type its undeviat- coal was also reduced. The Bureau of Mines estiing characteristics, and with activity steadily mates the production of Pennsylvania anthracite for
dwindling. In the closing month business came the 52 weeks of 1931 at 59,531,000 net tons as against
almost to a complete standstill, with enterprise 69,385,000 tons in 1930; 73,828,000 tons in 1929, 75,almost absolutely dead, business leaders having 348,000 tons in 1928, and 80,096,000 tons in 1927.
abandoned hope of any change for the better in The falling off here, however, cannot be ascribed
the immediate future and seeing little chance of entirely to business depression, since hard coal, by
success attending ventures of any kind in any reason of its high price, has been steadily losing its
market to other classes of fuel, more especially oil.
direction.
Turning to the iron and steel statistics, it is found
country
the
of
was
annals
trade
the
in
time
At no
pessimism so completely regnant in manufacture, in that the make of iron in the calendar year 1931 was
agriculture, in transportation, and in every division only 18,275,165 tons against 31,399,105 tons in the
of human activity. In finance, no less than in com- calendar year 1930 and 42,285,769 tons in 1929, a
merce, multiplying evidences of collapse were seen, drop in the two years of 24,000,000 tons. Every
with market values of securities depreciating as month in 1931 shows a lower total than the correnever before, with commodity prices sinking lower sponding month in 1930, and the latter year had
and still lower, with new financing cut to figures so shown for each month a lower total than the same
low that two years before they would have been month of 1929. In December 1931 the make of iron
deemed impossible, and with the whole situation dropped to less than a million tons, being reported
made infinitely worse by the fact that this state of for that month by the "Iron Age" at only 980,376
things was not confined to the -United States, but tons. The "Age," in commenting on this result, said
that the rest of the world was suffering no less deeply that both the daily average in December and the
than this country, and with idleness and unemploy- total for the month made new low records for the
ment everywhere such as to baffle description. Bank past 10 years. The most recent lower totals were
clearings furnish mute testimony to all this, in show- those for August 1921 at 954,193 tons for the month,
ing huge further shrinkage in volume following the and a daily average of 30,780 tons. Except for
August and July 1921 it is necessary to go back to
prodigious contraction of the previous year.
No one needs to be told that the times were bad November 1900, or over 31 years, to find a lower
in 1931,since he knows that from the painful experi- average daily rate. The record in the case of steel
ence in his own case, but trade statistics are valuable is the same. The American Iron and Steel Institute
in showing the extent of the contraction and make estimates the production of steel ingots at 24,900,195
it plain that the complaints on thatscore encountered tons for 1931 against 39,286,287 tons in 1930 and
everywhere during the year were in no sense in the 54,312,279 tons in the calendar year 1929, a loss, comslightest degree exaggerated. And these trade pared with the latter year, of almost 30 million tons.
statistics, with reference to the volume of business Here, too, every month of 1931 showed a lower prodone,in some of the leading lines of industry to which duction than the same month of 1930, and this latter
we propose to refer in the course of this analysis of in like manner showed a loss every month as combank clearings, serve unerringly to indicate the un- pared with 1929. For December 1931 the output of
derlying cause of the enormous contraction disclosed ingots was only 1,302,399 tons, or the smallest of any
by our compilations in the volume of these bank month of any year since August 1921.
The automobile trade, it is needless to say, sufclearings, which in themselves furnish, as already
an almost complete collapse. For the calendar
fered
afflicbusiness
the
to
testimony
'dated,the strongest
tion which the country has been suffering, and the year 1931 the output of motor vehicles in the 'United
whole of which affliction it cannot yet be said lies States was estimated at 2,468,000 as against3,355,986
behind us. And such analysis is certainly not with- in the calendar year 1930 and 5,358,420 in the calenout value when we find (as the figures will show as dar year 1929. It will be observed that in round
we proceed) that for all the clearing houses in the amounts 1,000,000 less cars were turned out in 1931
country the aggregate of the clearings in the two than in 1930, and 3,000,000 less than in 1929. The
years from 1929 to 1931 has dropped from $726,- building trades are another industry which suffered
000,000,000 to only $410,000,000,000, a falling off of a severe slump. The F. W.Dodge Corp., in its com25.4% in 1930 from 1929 having been followed by a pilations, shows that during the 12 months of 1931
further falling off in 1931 as compared with 1930 the construction contracts awarded in the 37 States
east of the Rocky Mountains involved a money outof 24.3%.
of $3,092,849,500 against $4,523,114,600 in 1930,
lay
Now, what do the trade statistics show? Beginning with the quantity of coal mined and which ulti- $5,754,290,500 in the 12 months of 1929, and $6,628,mately finds its way into consumption, we find that 286,100 in 1928. S. W. Straus & Co., in their corn-
JAN. 23 1932.]
FINANCIAL CHRONICLE
565
the directorate of American Cotton Co-opera-
the Federal Farm Board and
pilation dealing with building permits in 577 cities tive Association for consideration of cotton financing and marketing probto ratification by the Farm Board, its representatives there
lems.
find the permits covering the calendar year 1931 presentSubject
agreed that if the banking groups of the South would undertake
$1,336,050,037
to finance not less than 3,500,000 bales of cotton through making or
involved contemplated expenditures of
renewing loans, secured by cotton collateral of this aggregate baleage, the
1929,
in
$3,379,977,311
1930,
against $1,928,392,507 in
Farm Board would agree to extend the obligations of the American Cotton
Association covering approximately 2,000,000 bales of cotton
$3,827,821,447 in 1928,$3,927,901,236 in 1927,$4,378,- Co-operative
of the seasons 1930-31 or earlier years, to July 31 1932, unless such cotton
12%c. per pound on the near
424,073 loss in 1926, and $4,578,593,689 in 1925. Of could be sold at a price of more than and
would further agree that the
of the New York Cotton Exchange,
course the lumber business suffered most severely month
authorized to maintain its
be
Cotton Stabilization Corporation would
for an equal period subbales
1,300,000
approximately
of
from this reduction in contemplated new construc- present baleage
ject to the same exception as to price.
tion and from business depression generally. AcThis arrangement was subsequently ratified by the Farm Board.
Farm Board is now in receipt of a report from Mr. Nathan Adams of
The
Lumber
Manufacturers'
cording to the National
Dallas, Tex., the Chairman of the Bankers' Committee appointed by the
pledges, stating that he holds definite
Association, production of lumber, as shown by re- New Orleans conference to receive
accordpledges from Southern banks to finance 3,100,000 bales of cotton in
ports by an average of 660 mills to the Association, ance
understanding.
above
with the terms of the
Farm Board appreciates the difficulties inherent in securing pledges
aggregated only 9,603,981,000 feet for the 52 weeks The
for financing so large an amount of cotton within the limited time available.
reported is 400,000 bales short of the goal
of 1931 against 14,101,648,000 feet in 1930, a decrease Although the number of pledges additional
pledges covering at least this
hope and expect that
we
set,
of 32%. The same mills for 1929 showed a total cut amount will be received. The willingness of Southern bankers to guaron cotton to such an extent abundantly evidences their symof lumber of approximately 18,469,200,000 feet,and as antee credit
pathetic attitude towards cotton, their conviction as to the basic soundcompared with that year the falling off reaches 48%. ness of loans on the low price level of this year's crop and their co-operation
the Farm Board in its efforts to help Southern farmers.
Independent of the general business depression, with
The Farm Board announces at this time that it will carry out its part
reached at New Orleans on Oct 12 1931.
the agricultural sections had troubles of their own to of the agreement tentatively
at least
The consummation of these arrangements will definitely remove
available for sale
contend with, the same as in the previous year, only
to
0 7 million bales from the supply of American cotton the earnestness
the current season. The Farm Board appreciates
a great deal worse, and their lot was indeed a hard during
small
which Mr. Adams and the other bankers of the South, especially the
one. Prices of agricultural products, already exceed- country banks, have shown in carrying through these arrangements, and
on their success.
ingly low in 1930, dropped still lower in 1931. And congratulates them
this remark applies to both the grain growing secThis had the effect of stiffening market prices in
tions of the West and the cotton growing sections the closing weeks of 1931, especially as planters
of the South. The drift of prices in the markets of showed a decided disposition to withhold cotton from
the world was almost continuously downward. On market in view of the low prices prevailing. How-the one hand,supplies were overabundant both in the ever, the price for spot cotton here in New York on
case of wheat and cotton, the one the money crop of Dec. 31 1931 was only 6.50c., which compared with
the West and the other the money crop of the South, 10c. Dec. 31 1930, and 17.25c. on Dec. 31 1929. This
and, on the other hand, with trade depression world- shows what a predicament the South was in, besides
wide, consuming capacity was impaired. Estimates which, it must be remembered, as pointed out by us
of the size of the growing cotton crop, under un- in previous articles with regard to bank clearings,
usually favoring weather conditions, kept steadily
that the South has never fully recovered from the
getting larger as the season progressed, and on
bursting of the real estate boom which for a time
Dec. 8 the Department of Agriculture at Washingspread over parts of the Southern territory, espeton estimated the 1931 crop at 16,918;000 bales of
cially the winter resorts, or from the destruction
'500 pounds as against a crop the previous season of
wrought by hurricanes and, other visitations of
only 13,932,000 bales, placing the crop second in size
nature. That is the reason why the South suffered
only to the bumper crop of 1926, when the yield was beyond all other seotions from the business prostra17,977,370 bales. Spot cotton in New York on Oct.5 tion which was common to the whole country.
dropped to only 5.50c. a pound, but recovered
The West suffered in the same way from the gensomewhat towards the end of the year on the meas- eral fall in the prices of agricultural products, and
ures taken to limit the acreage for next season's crop. in wheat in particular. The Farm Board continued
The area planted to cotton in the spring had been to extend assistance in the early months of the year,
substantially smaller than that sown in the previous but finally was obliged to withdraw all support.
season, the area in cotton July 1, according to the The Board confined itself to operations in the old
returns furnished in December, having been only
crop. In the spring of 1931, while the process was
40,954,000 acres as against 46,078,000 acres, the area
kept up, market prices ruled substantially higher
under cultivation on July 1 1930, but this was more than
futures for the new crop. The change came at
than offset by the extraordinarily favorable weather the end of May, when the Farm Board,in accordance
conditions and by the fact that less acreage than
with an announcement made the previous March,
usual was abandoned during the course of the season,
definitely concluded its stabilizing operations in conand that the spring weather had retarded weevil nection with the 1930 crop of wheat George S. Milpropagation. Some agreement for cutting down, in nor, President of the Grain Stabilization Corporaa very substantial fashion, the acreage to be devoted tion, then issued a statement summarizing the stato cotton in 1932 became imperative. In a statement bilization operations and speaking in eulogistic terms
issued at Washington, under date of Nov. 22, the of what had been accomplished. A telegram from
consummation of arrangements to that end was an- Chicago, May 29 (this was the last business day of
nounced by the Federal Farm Board at Washington. the month, May 30 having been Memorial Day and a
Previously many of the Southern States had passed holiday, and May 31 having been Sunday), after notlaws of one kind or another providing for drastic cuts ing that Government wheat purchases had termiin the 1932 acreage, and in the loaning arrangement nated when the closing gong of the Chicago Board of
referred to by the Federal Farm Board a disposition Trade had been sounded, stated that this was in
was evinced to withhold financial aid in 1932 from accordance with the Farm Board's announcement on
cotton planters who may ignore the laws adopted by March 22 that the Grain Stabilization Corporation
the Cotton Belt States for the reduction of the 1932 would cease purchases in the open market with the
acreage. The Farm Board's announcement was as cessation of trading in the 1930 crop.
follows:
Telegraphic dispatches from Chicago also stated
On Oct. 12 1931 a group of bankers from the cotton-growing States met
In conference at New Orleans with Chairman Stone and Mr. Williams of that the closing left Government agencies in posses-
566
FINANCIAL CHRONICLE
Prob. IBC
sion of more than 200,000,000 bushels of wheat, and tics regarding the farm value of the crops issued by
this large hold-over of Government-owned wheat the Department of Agriculture at Washington on
hung like a wet blanket over the market the rest of Dec. 16. On the basis of Dec.1 farm prices the total
the year. Mr. Milnor noted that the final quotation value of the crops produced in the United States in
on May wheat was 831
/
4c. a bushel, or higher than 1931 was estimated by the Department at $4,122,the 81c. at which the Corporation had "stabilized" 850,000, compared with $5,818,820,000 in 1930 and
the crop. He stated that American wheat prices $8,088,494,000 in 1929. The decline in crop values,
had 'been stabilized well above world levels for seven compared with two years earlier, it will be seen, has
months, a fact which had aided banks holding loans been nearly $4,000,000,000, or 49%.
against wheat to liquidate them. Since the previous
The financial markets contributed their part
November, Mr. Milnor declared, the price of No. 3 towards making the year one of exceptional gloom
hard cash wheat in Chicago had advanced from 76c. and disappointment. As pointed out in previous
to 84c. a bushel, "with the result that farmers and annual reviews,it sometimes happens that the course
others have been able to liquidate their wheat hold- of financial transactions does not run parallel with
ings at an average price of from 20 to 30c. a bushel the course of trade and business, because financial
above world level prices, which declined in Winnipeg sentiment continues optimistic notwithstanding that
to 52y2c.;in Liverpool to 601/
8c., and in Buenos Aires some of the trade.currents may be adverse. Not so
to 451/
2c." This was corroborated by the course of in 1931. In that year financial movementsfell under
prices for the different future options subsequent to the same spell of adverse influences as everything
May, all of which tumbled badly and remained low else. One illustration of this is seen in the big shrinkand depressed for the remainder of the year except age which occurred in the amount of new securities
for a spurt upward which occurred in October and brought out during the year. This was shown in our
November, but was only in part maintained. While article on the New Capital Flotations for the 12
the March option at Chicago during May advanced months of 1931, published in our issue of Jan. 16.
in the way indicated by Mr. Milnor, that is, from Eliminating the financing which was merely for re821/A83c. a bushel %fay 1 to 86Y4c. on May 21, and funding, that is for taking up or retiring of existwab 84@85c. on May 29, on the other hand, the July ing issues, and confining ourselves entirely to the
option, after opening May 1 at 62/
3
4c., and reaching financing that represented strictly new capital, the
64%c. May 13, sold down to 58c. on May 25, and new financing of 1931 reaches a total of no more
closed May 29 at 60Y8c. All the different Canadian than *3,108,465,343 against *7,023,388,282 in 1930
options ruled at a level of 20(g25c. a bushel lower and $10,182,766,518 in 1929. In the case of corporate
than the manipulated May option at Chicago, but issues the amount of new capital involved was only
corresponded closely to the levels of the Chicago *1,763,448,723 in 1931 as compared with $4,944,options for July and subsequent months.
403,166 in 1930 and $8,639,439,560 in 1929. The
The Farm Board undertook to lighten its load by financial markets were completely demoralized, and
moderate sales from time to time to different foreign prices melted away as perhaps never before in the
countries—to China, to Germany, and even made an country's history, bonds suffering as severely, if not
exchange with Brazil of 25,000,000 bushels of wheat more severely, than stocks in that respect. This
in exchange for 1,050,000 bags of coffee. All this alone would have been sufficient to restrict new
proved of no avail, and on Oct.5the December option financing to a very considerable extent. Then the
for wheat at Chicago sold down to only 44%c. a United States Government had increasing troubles
bushel. The price now recovered, and on Nov. 9 the to contend with in its financial operations, arising
December option at Chicago sold as high as 681/
8c., out of the growing budget deficit (owing to the
after which, however, a sudden collapse occurred, shrinkage in revenues because of the business depresand on Dec. 31 December wheat at Chicago ranged sion) and the certainty that extensive new financing
between 52%c.and 55c., which compared with 763
/
4c. would have to be done on that account. Furtheron Dec. 31 1930 and with $1.27% on Dec. 31 1929.
more, the old Congress the previous February, beThese facts are cited here simply to show how fore adjournment, passed another Soldier Bonus Act
deplorable was the condition of the Western farmer over the veto of the President calling for outlays in
right up to the -very close of the year. In the spring the neighborhood of a billion dollars. The budget
wheat sections of the Northwest there was the fur- deficit for the Government fiscal year ending June 30
ther disadvantage that the crop was heavily reduced was estimated at not less than $2,000,000,000, and
as a result of prolonged drouth. The drouth worked the likelihood that it would reach and exceed that
such havoc that the crop proved almost a complete amount was made more certain with the lapse of
failure in some areas. The Department of Agricul- every succeeding month as Government revenues conture in Washington, in its final estimate in Decem- tinued steadily to shrink. The latter part of 1931
ber, put the spring wheat yield at only 104,806,000 the various relief measures recommended by the
bushels against 256,320,000 bushels in 1930 and 235,. President and which the new Congress convening in
564,000 bushels in 1929. As against this, however, December evidenced quick readiness to approve
the winter wheat yield in the West and Southwest afforded additional evidence going to show that Govproved unusually abundant and yielded 787,465,000 ernment financing would have to be done and on a
bushels against 601,840,000 bushels in 1930 and 577,- very extensive scale. One of these relief measures,
009,000 bushels in 1929, with the result that the total namely, the Reconstruction Finance Corporation
wheat crop of 1931 aggregated 802,271,000 bushels Act; provides for an initial Government subscribed
as compared with 858,160,000 bushels in 1930 and capital of $500,000,000, with authority to issue deben812,573,000 bushels in 1929. Perhaps the best way tures or like obligations to a maximum of $1,500,to indicate how greatly the purchasing power of the 000,000. In these circumstances United States Govagricultural classes of the country was reduced by ernment securities suffered declines in market prices
the low prices to which agricultural products have only second to those of security prices in general,
fallen,is by referring to the customary annual statis- and at the close of 1931 all the different United
JAN. 23 1932.]
FINANCIAL CHRONICLE
567
The railroads demurred to this
States obligations traded in on the Stock Exchange the weaker lines.
of the allowances to the
instead
that
suggested
and
exception.
solitary
one
sold below par with
of gratuities they be
nature
the
in
being
In Europe things turned from bad to worse, and weak lines
To this the Comrepaid.
be
to
later
loans,
as
in June President Hoover got the nations of the treated
but none
gave
assent,
7
Dec.
on
Commission
merce
world to agree to a one-year moratorium on German
1 1932.
Jan.
before
effect
into
went
rates
higher
the
of
reparation payments and intergovernmental debts,
absolutely
wage
schedules
of
lowering
the
to
As
which Congress ratified the following December,
accomplished beyond the holding of rewithout, however,relieving Germany of the necessity nothing was
between the executives of the
of applying for an extension of time on its short-term peated conferences
Presidents of the roads, first
the
and
indebtedness. In September Great Britain, after labor unions
The Presidents, acting
another.
at
then
place,
one
having obtained the previous month two large bank- at
leaders to consent
labor
the
get
to
sought
collectively,
ing credits, found itself under the necessity of susbe effective for
to
10%,
of
reduction
voluntary
a
to
pending gold payments, and the Scandinavian counof a six-hour
talked
leaders
tries and afew other countries were obliged to follow only a year, but the labor
numgreater
a
for
employment
suit, the whole reflecting a highly disturbed state day (so as to provide
that
were
things
other
of
lot
a
and
ber of hands)
of things.
irreleabsolutely
not
if
question
the
of
In the transportation industry the railroads suf- wholly out
the year closed with everything still hangfered really frightful losses, with the result that vant, and
air except that another conference was to
the
in
ing
hosts of them were obliged to reduce dividend payJan.14. The railroads, on their part, gave
ments or let them lapse altogether. On the extent be held on
required by the law of a proposed reducof their falling off in traffic—as a result, of course, the notice
schedules of 15%, but agreed to hold
of the all-pervading character of the depression in tion in wage
action in abeyance, and to continue the partrade—and their losses in revenues, it is only neces- further
the labor leaders, and await the outcome.
sary to say that the loading of revenue freight on leys with
reference to the unionized forces—to the
has
this
the railroads of the United States for the 52 weeks All
the different brotherhoods. The higher
of
members
of 1931 comprised only 37,272,371 cars against 45,their wages or compensation scaled
saw
officials
877,974 cars in the 52 weeks of 1930 and 52,827,925
early in the year, and many bodies of
cars in the 52 weeks of 1929. It will be observed that down quite
labor were also induced to accept
2 million less cars were loaded with revenue other classes of
151/
much difficulty.
freight in 1931 than two years before, in 1929. As wage cuts without
we see depicted a state of
foregoing
In all of the
to the falling off in earnings, the gross operating
of Which, as far as bank
outcome
logical
earnings for the eleven months ending with Novem- things the
not be otherwise than
could
concerned,
are
clearings
ber (the figures for December are not yet available)
already indicated,
shrinkage
further
huge
the
aggregated only $3,947,947,077 in 1931 against
total of all the
grand
the
in
reduction
a
namely,
$4,965,707,401 in 1930, a falling off of over a billion
564 in
$410,338,166,
to
dollars, and $5,890,912,371 in 1929, while their net clearing houses in the country
1929
in
,647
$726,884,632
from
operating income (out of which fixed charges must 1931 following a drop
way,
another
in
stated
or,
1930,
in
904
be paid) dropped to only $509,018,849 in 1931 as com- to $542,243,060,
1930 as compared
in
25.4%
of
contraction
a
after
pared with $835,525,665 in 1930 and $1,202,707,319
with 1929 we have a further reduction of 24.3% in
in 1929.
1931
as compared with the diminishes amount of
Hosts of roads failed to come anywhere near earnOther logical conclusions and deductions also
ing their fixed charges, while still others, among 1930.
follow from the condition and circumstances outthem some of the strongest systems in the country,
in the extended remarks further above. One
barely earned their fixed charges, though in 1929 lined
is that inasmuch as the depressthey were able to earn handsome dividends. In not of these conclusions
ing influences were all-pervading, no line of trade or
a few cases the net earnings of 1931 were only onebeing exempt, the clearing
third or one-fifth, or less, of what they had been section of the country
uniformly of the same
almost
are
returns
likewise
in 1929. As a few instances of the kind, we may menIt is rather
unfavorable.
highly
is,
that
character,
tion that the New York Central for the 11 months
in ratio
while
that
first instance
of 1931 reported net operating income of $27,511,513 noteworthy in the
was
York
New
at
1929
from
1930
the
falling off in
as against $98,167,812 for the same period of 1929;
been
having
it
York,
New
of
outside
than
much
larger
the Pennsylvania RR.only $48,136,625 against $129,York and only 21.8% outside of New
602,881; the Atchison, $30,504,313 against $65,- 27.3% at New
for this being that speculative operareason
the
York,
339,450; the Southern Pacific, $21,616,233 against
stock market craze in 1929 were
the
during
tions
$56,658,938; the Chicago Milwaukee St. Paul & Pamore pronounced here than elsewhere, and the resultcific, $7,740,175 against $24,978,406; the Illinois
ing
drop in 1930 correspondingly greater. This difCentral, $10,316,839 against $25,089,712, and the
no longer appears in the further decline in
ference
Southern Railway, $7,931,306 against $27,957,905.
1931
compared with 1930. In this last case the
as
The railroads sought relief from this state of things
of falling off are almost identical, the
percentages
in two directions. First they asked for a 15% inratio
at
New
York being 24.2% and that outside of
crease in freight rates, and secondly they sought a
New
York
24.6%.
reduction in wage schedules and got little satisfacThe truth appears to be that the growth outside
tion in either direction. On Oct. 20 the Inter-State of New
York,as has been repeatedly depicted in these
Commerce Commission turned down the proposition
annual
reviews, whenever it is in progress, is slow
for a flat increase of 15% in freight rates, but offered and
rather than spectacular, while on the
steady,
instead limited and partial increases estimated to
other hand when business reverses come these outyield additional revenue in the sum of $100,000,000 side cities feel the effects more keenly than the
to $125,000,000 on condition, however, that the addi- country's financial center. Ordinary trade setbacks seem
tional revenue be applied first of all to meet deficien- to find quicker and fuller expression at the outside cities
cies,of revenues to meet fixed eharges in the case of than at New York, especially where financial transactions,
568
FINANCIAL CHRONICLE
[VOL. 134.
MONTHLY CLEARINGS.
which exert an independent influence upon bank exchanges
come in at New York to offset the effects of adverse busiClearings, Total All.
Clearings Outrkie New York.
ness conditions. Back in 1927, for instance, the course of Month.
1931.
1930„
1931.
1930.
%
%
trade and the course of financial transactions (particularly
$
X
$
8
those arising out of speculation) were at variance, and our Jan- 39,729,867,597
50,502,766.229-21.3 14,429,407,420 18,471.461,679 -21.9
analysis at the time showed that the further growth in Feb__ 32,982,299,288 41.554,440,845-20.6 11,759,025,696 15,566,791,938 -24.4
Mar..39,345,863,143 51,077,112,089-23.0 13,177,478,161 17,312,053,982-23.9
bank exchanges in that year (which was substantial at New
1st qu_ 112058030028 143134319163-21.8 39,365,911,277 51,350,307,579 -23.3
York, being 10.60%, and only nominal outside of New York,
Apr_
39,899,862,096 50,708,761,896 -21.3 13,519,053,932 17,172,623,364 -22.8
that is, no more than 0.2%) was to be ascribed mainly to May- 37,927,970,265
45,539,769,118 -21.9 12,984.361,382 17,110,851,198 -24.1
these financial transactions. Trade and business at that June-- 39,281,209,724 49,612.548,531 -20.8 13,220,998,602 16,463,828,193 -19.7
time were markedly on the decline, especially the latter part 26 qu_ 117109042085 148861079545-21.4 39,724,413,916 50,747,302,755 -21.7
of the year. In 1928, on the other hand, the course of specu- 6 mos_ 229 167072113 291995398 708-21.5 79,090,325,193 102097610 334 -22.6
lation and of trade were once more in unison, and both con- July.. 84,817,649,284 46,911.125,085 -26.1 12,892,016,638 17,142,900,716-24.3
Aug.__ 29,305,352,003 38,769,203,790-24.4 11,266,179,131 14.783,235,566-23.7
tributed to enlarge the totals of bank clearings, though even Sep(_
31.154,512,692 40,316,543,297-22.9 11,488,598,277 14,906,831,301 -22.9
then only moderately outside of New York. The truth is
3d qu- 95.277.513,979 125998872 172-24.4 35,646.794,048 48.812,967,583-23.8
that trade plays its part in swelling bank clearings at New
York, but not to the extent that purely financial transac- 9 mos- 324444586092 417992270880-22.3 114737119239 148910577917-22.9
tions do; on the other hand, outside of New York trade con- Oct_ __ 32.680.872,109 45,832,977,085-26.3 11,967,773,199 18,749,018.183-28.5
Nov __ 24,133.395,294 38,153,737,002-33.3 9.681,991,950 13,970,442,017-30.7
ditions, and the course and volume of trade transactions are, Dec__ 29,079,313,069 42,464,075,937-31.5 10,680,888,218 15,503,494,687-31.1
in most instances, the governing factors in determining the 4th QU. 85,893,580,472 125250790024-31.4 32,330,853.367 46,222,954,867-30.1
rise and fall in bank clearings and the rate of growth over 12mos. 410338166564 542243060904-24.3 147067772
606 195133532784-24.6
longer and shorter periods of time, though even at outside
MONTHLY CLEARINGS AT NEW YORK.
points, and especially at the outside financial center, finanInc.or
cial transactions have been rapidly growing in importance Month.
Dec.
1931.
1930.
1929.
1928.
of late years, to that extent occasionally modifying the in$
$
$
%
$
fluence exerted by purely trade conditions alone.
January. 25,300,460,177 32,031,304,550 -21.0 43,903,665,870 31,043,479,929
_ 21,223,273,592 25,987,648,907 -18.3 35,929,758,330 26,824,126,066
When, however, a complete collapse in trade and business Feb.
March_ 26.168,384,982 33,765,058,127 -22.5 42,318,838,678 35,453,835,089
occurs, as has been the case since the autumn of 1929, trade 1st quar. 72,692.118.751 91,784,011,584 -20.8 122.152,262,878
93.321,441,084
depression becomes the ruling and the paramount factor,
April__ 26,380,808,164 33,536,138,532 -21.3 34,997,553,404 32,039,860,473
and the outside cities, as well as New York City by itself, May,. _ 24,943,608,883
31,428,917,920 -20.6 36,781.939,592 36,704,986,867
move precipitately downward in a common course, with the June_ 26,060,211,122 33,148,720,338 -21.4 34,560,646,138 34,738,742,012
outside cities often the worst sufferers. This appears con- 2d guar_ 77.384,628,169 98,113,776,790 -21.1106.340.139,134103.483,589,352
spicuously the case when we extend our comparisons back 6 mos__ 150,076,746,920 189,897.788,374 -21.0 228,492,402,012 196,805,030,436
for a long series of years, and compare the reduced clearings July__ 21,925,632,646 29,768,224,369 -26.3 40,207,748,959 27,755,457.498
August - 18,039,172,872 24,005.968,224 -24.9 39,199,224,609 26,979,049,907
of 1931, following the terrific shrinkage of 1930, with the Sept.19,665,914,415 25,409,711,996 -22.6 38,952,961,669 30,102,328,360
totals reached in the years before the gigantic stock market
3d guar. 59.630,719,933 79,183,904,589 -24.7 118,359,935,237 84,836,835,765
speculation acted so greatly to enlarge the volume of bank
clearings at New York for the time being. The New York 9 mos..- 209,707,466,853 269,081,692,963 -22.0 346,852,337,249 281,641,866,201
City clearings at $263,270,393,958 for 1931 are the smallest October. 20,713,098,910 28,883,958,922 -28.3 54,200,118,901 35.151,739,187
Nov____ 14.451,403,344 22,183,294,985 -34.9 43,089,703,238 35.715,739,187
of any year since 1924, when the aggregate at this center Deo_ ___ 18,398,424,851 26,960,581,250 -31.8 33,100,122,773 39,218,131,773
was $249,868,181,339. On the other hand, the total of the 4th qua? 53,562,927,105 78,027,835.157 -31.3 130,389,944,912 110,085.610,063
clearings outside New York at $147,067,772,606 for 1931 is Year.- 263,270,393,958 347,109,528,120 -24.2 477,242,282.161 391,727,478,264
the smallest of any year since 1917-that is, we would have
namely, that the decreases as a rule are heaviest in the
to go back 14 years to 1917 to find a total for the outside
closing months of the year, thereby evidencing the growing
smaller
than
that
cities
recorded for 1931.
intensity of the depression as the year proceeded. This last
YEARLY TOTALS OF BANK CLEARINGS.
fact, however-the unabated shrinkage-possesses greater
significance in 1931 than it did in 1930. After the heavy
Inc.
Clearings
Inc.
Inc.
New Tor*
Ysar.
or
Outside
or
Total
Or
shrinkage in the closing months of 1930, one would naturally
Dec.
Clearings.
New York.
Dec.
Dec.
Clearings.
have supposed that the results for 1931 (comparing with
$
$
%
$
%
%
1931
263,270,393,958 -24.2 147,067,772,606 -24.6 410,338,166,564 -24.3 such heavily reduced figures in 1930) would show a lessened
347,109,528,120 -27.3 195,133.532,784 -21.8 542,243,060,904 -25.4
1930
477,242,282,161 +21.8 249,642,350,486 +3.1726,884.632,647 +14.7 ratio of decrease in the closing months of 1931 than was
1929
391,727.476,264 +22.0 242,144,679,206 +3.7 633,872,155,470 +14.2 the
1928
case in the earlier months of 1931. But that is found
1927
321,234,213.661 +10.6 233,875.528.415 +0.2 555,109,742.076 +8.0
1926
290,354.943,483 +2.4 233,418.828.972 +2.1 523.773.772.455 +2.3 not to have been the case, and the conclusion necessarily
283.619,244.637 +13.5 228.506.560.498 +11.0 512,215,805,135 +12.4
1925
249.868,181.339 +16.8 205.891.161,152 +3.1 455,759,342.491 +10.2 follows that trade depression reached a still more acute
1924
213.996.182,727 -1.8 199.456,248.672 +14.8 413,452.431,399 +5.6
1923
217,900,386,116 +12.1 173,606,925.839 +7.7391.607.311.953 +10.1 stage as the year came to a close.
1922
194.331,219.663 -20.0 161.256,972.863 -21.9 355.588,192.536 -20.5
1921
And the showing in that particular Is the same whether
243.135.013,364 +3.1 206,592,968,076 +12.3449.727.981.440 +7.6
1920
235.802,834.887 +32.0 181,982.219.804 +18.3 417.784,854,691 +25.7 we take the clearings alone at New York or at all the cities.
1919
178.533,248,782
+0.6 153,820.777.681 +18.7 332.354,026,463 +8.3
1918
177.404,965,589 +11.5 129,539,760,728 +26.7 306,944,726.317 +17.2 At New York the clearings for the final quarter of 1931
1917
159.580,645.590 +44.4 102,275,125.073 +32.4 261,855,773.663 +39.4
1916
110,5.4,392.634 +33.2 77,253,171,911 +7.0 187,817,564,545 +20.9 register a decrease of 31.3% as compared with 1930, the
1915
83.018,580,016 -12.3 72,226,538.218 -3.9 155,245.118.234 -8.6 highest ratio of contraction for any
1914
quarter of 1931, and
94.634.281,984 -6.1 75,181,418,618 +2.7 189,815,700,600 -2.4
1913
100,743,967,262 +9.1 73.208.947.649 +7.9 173,952,914.911 +8.6 this follows no less than 40.2% decrease in 1930 as com1912
92,372.812,735 -5.0 67,858,960,931 +1.6 160,229,773.666 -2.4
1911
97,274,500,093 -6.1 66,820,729,906 +7.3 164,095,229,999 -1.0 pared with 1929, also the highest of any quarter of that
1910
103,588.738,321 +30.7 62,249,403,009 +17.2 165.838,141.330 +25.2 year.
1909
Outside of New York the clearings for the final
79.275,880,256 -9.1 53,132,968.880 -8.4 132,408.849.136 -8.8
1908
1907
87,182.168,381 -17.5 57,843,565.112 +4.8 145.025.733.493 -9.3 quarter of of 1931 show a contraction of 30.1% as compared
1906
105.676.828,656 -12.5 55,229,888,677 +10.1 159,905,717,633 +11.0
1905
93.822.060,202 +38.7 50.005,388,239 +13.9 143.827.448.441 +27.7 with the final quarter of 1930, also the highest ratio for any
Note.-Beginning with 1920 clearing outside of New York do not Include St. quarter of 1931 and this
comes after 26.3% decrease (likeJoseph, Toledo, and about a dozen minor places which In 1919 and previous years
contributed regular returns, but now refuse to furnish reports of clearings. The wise the highest ratio for any quarter of that year) in
omitted places added, roughly, 32,000,000.000 to the total in 1919.
1930 as compared with 1929. Of course speculation played
In what we have said above we have had reference to an important part in diminishing bank clearings and this
the totals of clearings for the full calendar year. It will be was a more important factor in the final quarter of 1930
of interest now to examine the returns for the separate than in that of 1931. To illustrate the part played by
months of the year. In the following two tables we show Stock Exchange speculation in affecting the comparisons
the monthly comparisons arranged in quarterly and half- both for 1931 as compared with 1930 and for 1930 as
yearly periods, and we give the figures for New York sepa- compared with 1929 and as a matter of fact to present
rate from those for the rest of the country, and also show a record of the transactions on the New York Stock Exthe totals for the whole country with New York included:
change for each month of the last five years we now
As was the case in 1930, these records for 1931 bear out Introduce the table below.
what has already been said as to the uninterrupted character
It will be seen from the table that there was nothing
of the shrinkage in these records of bank exchanges, month in the Stock Exchange transactions, as far as the mere
after month during 1931 in an entirely unbroken series. volume of business was concerned, that made them a more
Whether we take the clearings with or without New York, or potent factor in reducing the volume of clearings in the
at New York by itself, there is a decrease in all the different final quarter than in any of the other quarters of the year.
months, and a big decrease,too, in all cases. What was note- On the contrary, considering the last quarter by itself, Stock
worthy, moreover, in 1930 is again noteworthy in 1931, Exchange business began its downward movement already
FINANCIAL CHRONICLE
JAN. 23 1932.]
569
SALES OF STOCKS ON THE NEW YORK STOCK EXCHANGE.
relief devised, of one kind or another, and for which Congressional approval became assured with the meeting of the
New Congress in December, still further added to the likeliShares.
No.
Shares.
No. Shares. No. Shares. No. Shares.
No.
hood of considerable amounts of new U. S. Government
42,503,382 62.308,290 110,805,940 56,919,395 34,275.410
Month Of January
February - 84,181.836 67,834.100 77.988.730 47,009.070 44,162,496 issues. Accordingly dealings in Government bonds reached
March-- 65.658,034 98,552,040 105.661.570 84,973,869 49.211,663 proportions not witnessed for a long period previously.
Total first quarter. 172,343,252 226,694,430 294,436,240 188,902.334 127.649.569 Our compilations show that dealings in U. S. Government
54,346,836 111,041,000 82,600,470 80,478,835 49,781,211 issues reached an aggregate of $908,455,600 in 1931, against
Month of April
46,659,525 78,340,030 91,283,550 82,398.724 46,597,830
May
58,643,847 78,593,250 69,546,040 63.886.110 47.778.544 $115,785,250 in 1930, $142,079,800 in 1929 and $187,634,250
June
in 1928. Sales of railroad and miscellaneous bonds, notwithTotal second quar_ 159,650,208 265,974,280 243,430,060 226,763,669 144,157,585
standing the continued activity in the bond market, did
Tots six months 331,993,460 492.668.710537.865,300 415,668,003 271,807.154
not quite reach the total for 1930 and were considerably
33,545,850 47,746,090 93,378,690 39,197,238 38,575,578
Month of July
24,828,500 39.889,500 95,704,890 67,191,023 51,205,812 less than for 1929, the 1931 total being $1,846,035,700 as
August
September 51,040,168 53,545,145 100,056.120 90.578.701 51,576.590 compared with $1,927,021,400 in 1930 and $2,182,392,300 in
Total third quarter 109,414,318 141,160,735 289,139.700 190,966,962 141,357.978 1929. Sales of state, foreign and other bonds, on the other
Total nine months 441,407,778 633,829,445 827.006,000 612,632,965 413.165.132 hand, suffered a heavy reduction notwithstanding that atstrongly concentrated all through the year on
Month of October__ 47,896,533 65,497,479 141,668,410 98,831,435 50,289.449 tention was
November 37,355,208 51,946,840 72,455,420 115,360,075 51,016,335 foreign Government issues. Including United States issues
December_ 50,158,818 58,764,397 83,861,660 92,837,350 62,092,302
and the foreign Government issues, as well as the different
Total fourth guar 135,410.559 176,208,716 297,985,490 307,028.880 163.398,086
corporate isues, the total par value of bonds of all descripTot.second six moe 244,824,877 317,389,451 587.125,190 503,995,822 304,656.064 tion dealt in during 1931 was $3,050,608,850, against $2,763,-.
on...011M
070212 419 q10 WAR 101 112400140A Glo Am eom
RA, 012
567,550 in 1930, $2,982,299,200 in 1929 and $2,903,434,325 in
in the closing months of 1929, though in the other months 1928 as will be seen by the following:
of 1929 Stock Exchange transactions were still on the in- SALES OF STOOKS AND BONDS ON NEW YORK STOCK EXCHANGE
crease, and the shrinkage did not begin in these other
12 Mos. 1931. 12 Mos. 1930. 12 Mos.. 1929.
Desctiptton.
quarters until 1930. For the whole of 1931 sales reached
576,818,359
810,038,161 1.124,991,490
Stock-Number of shares
only 576,818,412 shares, as against 810,038,161 shares in
81,846,035,700 $1.927,021,400 12,182,392,300
and mislianeous bonds
1930 and 1,124,991,490 shares in 1929. What doubtless was Railroad
142,079.800
115,785,250
908,455,800
United States Government bonds_
657,827.100
720.760,900
296,117,550
an active agency in influencing further shrinkage in clear- State. foreign, Jvc., bonds
2.1 ngn ane 200 22 702 A07 Asn 22.982_299_200
ings in the last quarter of 1931 was that new financing
then, on account of unfavorable market conditions, dropped
In treating of stock speculation at New York it is not
to exceedingly low figures. Our article of last week on the possible to ignore the dealings on the New York Curb ExNew Capital Flotations during the calendar year 1931 fur- change where the business involves a very extensive body
nished striking illustration to that effect, showing that the of other stocks and bonds; here the shrinkage has been proaggregate of new issues brought out in the last quarter of portionately even larger than in the case of business on the
1931 was no more than $316,110,292 against $1,111,990,774 in New York Stock Exchange. On the Curb Exchange sales for
the closing three months of 1930, $1,834,944,200 in the last the twelve months of 1931 aggregated only 110,349,651 shares,
three months of 1929 and $2,937,735,241 in the final quarter as against 222,286,725 shares in 1930 and 477,278,229 shares
of 1928.
In 1929, but only 221,171,781 shares in 1928 and no more than
For the year as a whole, as already stated, the sales on 125,116,566 shares in the calendar year 1927. In the case of
the New York Stock Exchange during 1931 aggregated only this Exchange, too, bond sales were larger in 1931 than in
576,818,412 shares, against 810,038,161 shares in 1930 and 1930, the par value of the sales reaching $979,895,000 in
1,124,991,490 shares in 1929. In the table we now present we 1931, as compared with $863,568,000 in 1930, $554,874,500 in
show the aggregate of the sales on the New York Stock 1929 and $833,056,000 in 1928. In the following we compare
Exchange for each year back to 1880. It will be observed the the transactions on the New York Curb Exchange for a
total for 1931 is almost indentical with that for 1927 wthen series of years past.
the number of shares dealt in was 576,563,218 shares, but
TRANSACTIONS ON NEW YORK CURB EXCHANGE FOR CALENDAR
YEARS.
that notwithstanding the big contraction in Stock ExBonds.
Stocks.
Bonds
Stocks.
change speculation which occurred in 1930 and 1931 the 1931_._shares 110,349,654
$979,895,000 1925. __shares 38,406,350 8500,533.000
72.243,900 200.315,000
222,286,725 863,568,000 1924
sales in 1931, nevertheless, were in excess of all years prior 1930
50,988.680 90,793,000
477,278,229 554,87 ,500 1923
1929
21,791,230 55,212,000
221,171,781 833,056,000 1922
to 1927.
1928
1931.
1929.
1930.
1927.
1928.
VAl.
KVA
NUMBER OF SHARES SOLD AT THE NEW YORK STOCK EXCHANG
BY CALENDAR YEARS
Cal.
Year.
Stouts.
Shares.
1931._ 576,818,412
1930_ - 810,038,161
1929 __ 1,124,991,490
1928 -- 919,661.825
1927__ 576,663.218
1926- 450,845,258
1925 -- 454.404.803
1924__ 281,931.597
1923_. 236,115.320
1922 -- 258.852,519
1921 -- 172.712,716
1920__ 228,640,400
1919- 316.787.725
cal.
stouts.
Year.
cat.
Shares.
Year.
1918 -- 144,118.469
1917 __ 185,628,948
1916 __ 233,311,993
1915__ 173,145,203
1914__ 47.900,568
1913 .._ 83,470.693
1912 __ 131,128,425
1911 __ 127.208,258
1910 __ 164,051,061
1909 _ 214,632.194
1908__ 197,206,346
1907 -- 196,438,824
1906- 284.298,010
mats.
cat.
Shares.
Year.
1905 -- 263,081,156
1004__ 187,312.065
1903 __ 161.102.101
1902 _ 188.503.403
1901 ... 265.944.659
1900 ... 138,380,184
1899 ... 176.421,135
1898.... 112,699.957
1897__ 77.324,172
1896 - 54,654,098
1895.... 66.583.232
1894.._ 49.075,032
1893 __ 80.977.839
Stocks.
Shares.
1892 _ 85.875.092
1891 __ 69,031,689
1890 _ 71.282,885
1889_. 72,014,000
1888- 65,179,106
1887 ._ 84,914,616
1888 __ 100,802.050
1885.... 92.538.947
1884 __ 96.154.971
1883__ 97.049.909
1882 _ 116,307,271
1881 _. 114,511.248
1880 - 97.919.099
It deserves to be noted, however that while dealings in
stocks were so heavily reduced, the sales in 1931 having been
only a little more than half those in 1929, dealings in bonds
after only a moderate falling off in 1930, as compared with
1929, actually increased somewhat in 1931. As already
stated, bonds suffered depreciation no less than stocks and
in not a few instances registered even larger declines on
continued liquidation along with more or less short selling
-this latter being a new feature in the bond market prices
often dropping two to three points and even more between
sales-all of which kept the bond market in quite a state
of activity most of the time. Yet the fact remains that the
bond total for 1931 is larger than that for 1930 entirely because sales of U. S. Government securities were on such a
greatly enlarged scale. These U. S. Government issues suffered heavy declines, as already pointed out in the early
portion of this article, inasmuch as the growing budget deficit
made it certain that the Government would have to put
out increasing amounts of new issues, while the soldier
bonus act served further to add to the probabilities in that
respect; and to cap the climax the various measures of
1927
1926
125,116,566 575,472,000 1921
115,531.800 525,810,000
15,522,415
25.510,000
Turning now to the records of clearings, classified according to Federal Reserve Districts, the main point to attract
attention is again the common decrease shown by all the
different Reserve districts. But, while in 1930 the contraction at New York ran far in excess (as far as percentage
of decrease is concerned) of that in the other districts this
being due to the greater prominence of the speculative
business the present year, on the other hand the further
contraction at New York does not run quite as large as
that outside of New York as already indicated further above.
The further decrease at New York is 24.0% and in several
other Reserve districts it is much the same; in the Philadelphia Reserve it is 24.7%; in the Cleveland Reserve district 23.8%; in the Atlanta Reserve district 23.4% and in
the San Francisco Reserve district 23.0%. The Reserve districts which fared worst are the Chicago Reserve district
with 30.4% contraction, the St. Louis Reserve district with
28.4% decrease, and the Kansas City Reserve district third
with a shrinkage of 27.1%.
The Boston Reserve district records for 1931 a falling
off of only 20.1% and the Reserve districts which have fared
best are Richmond with 17.9% decrease, Dallas with 19.4%
decrease and Minneapolis with 19.9% decrease. The Richmond Reserve district for 1930 also made the best comparisons with 1920, the falling off in that district in that year
having been only 7.7%. However, the ratios of falling off
In that district are heavy at most of the cities and it is
only the good showing made at Washington, D. C. where the
decrease in 1931 from 1930 is only 6.4% that has helped to
prevent the total from being pulled lower. In the Minneapolis Reserve district the good 'showing at St. Paul, with a
decrease of no more than 15.3% has served to hold
down
[VOL. 134.
FINANCIAL CHRONICLE
570
the ratio of decline and in the Dallas Reserve district the
relatively good comparisons at Dallas and at Houston are
responsible for the fact that the ratio of 1931 decline is
no heavier. In at least the Dallas case, however, the 1931
shrinkage follows a very heavy shrinkage in 1930 its compared with 1929, the declines having been 26.5%. In the
Chicago Reserve district the declines run almost uniformly
heavy, Chicago itself showing a loss in 1931 of 33.1%, with
Detroit reporting 26.9% decrease and Milwaukee 22.2%.
What is true of the Chicago Reserve district, is true also
of the St. Louis Reserve district and the Kansas City Reserve district, the declines being heavy nearly all around,
the falling off at St. Louis being 25.3%, at Louisville 38.7%,
at Kansas City 30.2%, though at Denver only 23.6%. Speaking generally the New York Reserve district, the Boston
Reserve district, the Philadelphia Reserve district and the
Cleveland Reserve district make relatively better exhibits
than most of the other Reserve districts at least in the
fact that at the separate cities no such wide extremes in
losses are showing.
In the Atlanta Reserve district we note that New Orleans
shows a decrease of only 13.2% which follows 15.3% decrease in 1930 as compared with 1929. The Atlanta Reserve
district comprises the Florida cities. As to these we think
it proper to say again what we said in other recent years,
namely, that if any one imagines that quick recovery is
likely after a speculative collapse he ought to study the
figures of bank clearings at these Florida points. The
slump during the last six years in the bank exchanges at
the Florida cities, stands as the most notable in history.
Miami no longer reports figures of bank clearings but the
shrinkage in previous years carried the amount for 1930
down to $123,198,000 at which figure comparison was with
$632,867,020 in 1926 and no less than $1,066,528,874 in 1925.
A drop from over a billion dollars to only $123,198,000 in
five years marks a collapse to which it would be difficult
to find a parallel. At Tampa clearings for 1931 foot up
only $73,091,638, as against $88,717,724 in 1930, $136,395,461
in 1929, $184,472,445 in 1928, $237,515,432 in 1927, $414,418,178 in 1926 and $461,800,170 in 1925. Even Jacksonville
clearings are only a little more than one-third what they
were back in 1925, the total for 1931 being $589,169,980 as
against $675,293,209 in 1930, $778,250,904 in 1929, $835,268,613 in 1928, $1,002,493,423 in 1927 and $1,505,427,663 and
$1,446,158,867 in 1926 and 1925 respectively.
Out on the Pacific Coast, in the San Francisco Reserve
district, the falling off this year of 23.0% follows only 15.3%
decrease in 1930 as compared with 1929. At Seattle the 1961
decrease is 21.7%, at Portland 21.8% and at San Francisco
25.3%. Los Angeles has stopped reporting bank clearings
and there presumably the falling off has been extra heavy,
since there is tense rivalry between that city and San Francisco, and Los Angeles dislikes to show smaller totals than
those of San Francisco. In the table we now insert we indicate the totals for the several Reserve districts for each of
the last eight years. The separate cities for each of the
Federal Reserve districts appear in the elaborate tables
given at the end of this article.
SUMMARY OF BANK CLEARINGS.
CNtio.
ies.
Federal Reserve
Districts.
lit Boston
2nd New York
3rd Philadelphia
4th Cleveland
5th Richmond --6th Atlanta
7th Chicago
8th 88. Louis
fith Minneapolis_ _ _
10th Kansas City
Ilth Dallas
kko am Francisco
14
13
14
15
10
16
28
9
13
14
10
23
Total
Outside N.Y. City.
179
-22
flamodla
Inc. or
Da.
1930.
1931.
$
$
20,712,338,570 25,914,935,994
270,163,544,553 355,520,007,309
21,212.375.322 28.151,933,548
16,013,922,705 21,145,822,948
7,258,081,587 9,078,063,317
6.250,965.037 8,156,611,273
30,463,094,163 43,810,366,289
6,729,939,023 9,396,706,727
4,913,275,129 8,135,244,372
8,754,834,076 12,011,213,880
4,395,930,032 5,344,350,252
13.458,988,367 17,482,397.665
1929.
1930.
1929.
1928..
1927.
1926.
1925,
$
1924.
$
1932.
New York_ 263,270347,190477,242 391,727 321,234 290,354 283,619249,868 213,998
Chicago - 19,201 28,707 36,714 37,842 35.958 34.907 35,39 21,854 31,113
Boston _ _ _ 18,373 23,070 27,61 25,829 25,468 25,130 22,48 21,323 19,310
Philadelphia 19,701 26,380 31,837 29.377 26,354 29,258 29,079 25,64 24,651
7,204
St. Louis _- 4,588 6,146 7.278 7,566 7,387 7,632 7,627 7,17
8,213
8,03
Pittsburgh _ 6,856 9,240 10,163 9,453 9,289 9,198 8,85
9,800 9,479 8,368 8,049
7,142 9,559 10,938 11,491 10,11
Sal Fran_
1 5,974 5,832 5,025 4.838
5,618
Baltimore__ 3,852 4,820 5.287 5,26
3,353 3,445
3,71
3,911 3.901 ' 3.877 3.8
Cincinnati - 2,838 3,20
Kansas City 4,400 6.302 7,451 7,25- 7.245 7,302 7,036 6,582 6,882
5,441
5,99
8,179
5,550
6.913
6.45
7,96
6,638
5,123
Cleveland_
2,986 2,811
3,17
2,734 2,908 3,056 3,08
2,31
N. Orleans. 2,01
4,095 4,110 4,483 4,026 3,677
4,705 4,42
Minneapolis 3,172 4,01
1,612 1,552
1,941 1,936 1,880 1,782 1,74
Louisville_ _ 1,134 1.8
3,44 i 11,558 10,434 8,770 8,813 8,431 7,356 6,694
Detroit _ _ _ _ 6,16
1,912 1,878
2,06
2,2
2,246
2,158
1,825
1,43
Milwaukee. 1,15
7,91
7,929
7,9
10,06 10,826 9,382 8,91
a
a
LosAngeles
02 633
s2
718
Ti
729
•81
876
63
57
Providence2,1:;
2.
2,103
2,104
2,102
2,312
2,39
1,725 2,18
2,782 2,3102,346
2,736 2,72
2,85
2.594 3,3
Buffalo_ -__ 1,93
1,805
1,631
1.8181
1,61
1,626
1,556
1,43
1,20
1,016
St. Paul_ _ _
9851 1,055
9
1,208 1,192
85' 1,092 1,286 1,20
Indianapolis
1,694 1,861 1,864 1,733 1,689 1.668 1,6111 1,868
Denver-- __ 1,29
2,839 2.8531 2,603
2,617 2,61
2,333 2,32
Richmond - 1,749 2,28
1,233 1,1144 1.140
1,173 1,192 1,19
1,2
9
66
Memphis_
2,0391 1,949
2,654 2,543 2,367 2,353 2.20
Seattle....1,583 1,99
567
6544
763
801
832
904
1,035
76
Hartford._.
589
5
805
89s
922
924
9
918 1,03
71
Salt L. City
41
505,634 873,731 587,866 509,330476.452 466,154414,170373,537
36,60 48,154 46,493 45,780 47,321 46,062 41,589 89,915
455,759413,452
Total all- 410,338 542,243 728,885633,872555,110523,773,512,216 205,891 199,458
OutaideN.Y 147,068 195,133249.642 242.144233,876 233,419.228.597
a Will no longer report clearings.
Total_ _ _ _ 331,4
28,8
Other
I
With reference to the dealings at the different Stock
Exchanges we have already commented on the share
and bond transactions on the New York Stock Exchange
and have also given the totals for the New York
Curb Exchange. At the outside Stock Exchanges dealings were everywhere smaller in 1931 than in 1930
even as they were smaller in 1930 than In 1929 at all points..
On the Chicago Stock Exchange the dealings reached 34,404,200 shares in 1931 against 69,747,500 shares in 1930;
82,216,000 shares in 1929; 38,941,589 shares in 1928; 10,712,850 shares in 1927; 10,253,664 shares in 1926; 14,102,892
1926.
1925.
1924.
-----1
410,338,168,564 542,243,060,904 -24.3726.884,632,847 633,872,155,470 555.109,742,076 523,773,772,455 512,215,805,135 455.759,342,491
147,087.772.606 195,133,532,784 -24.6249,642,350,486 242,144.679.206 233,875.528,415 233,418,828,972 228,596.560.498 205,891,161.152
ln 2.40 412 AAA 20 nnd GAO 000 --tel.) OM miet 870.1 000 9,1 Anil 900 man On MAR AGA RICA 17 AAA 0A1 All lA 701 Olg 904 111 077 094 AAA
CLEARINGS AT LEADING CITIES.
1931.
$
1927.
$
$
$
$
$
$
%
-20.1 31,158,917,523 29,134,572,308 29.608,240,625 28,182,070,347 25.525,891.741 24,051,259,710
-24.0487,551,440,643 400,416,198,002 329,480,401,556 298,325,474,068 291,123.385,917 258.565.563.138
-24.7 33,989,427,506 31.554,865,027 30,564,388.289 31,434,818,164 31,761,036,681 28,144,370,886
-23.8 24,535,091.978 22.728,442,163 22,012,742,276 21.582,647.725 20,822,673,742 19.023,200,794
-17.9 9,834,565,649 9,785,185,874 10,335,642.052 10.901.020,215 10,980,309,435 9,940,690,246
-23.4 10,118,234,208 10,114,722,180 11.108,531,915 12,456,123,556 13,477,069,522 10.536,078,389
-30.4 56,270,138,889 56,385,204,739 62,677,335,684 51,641.391,122 51.302,734,279 45.989,493.112
-28.4 11,787,219,456 11,932,994,630 11,757,013.950 11,894.757,283 11,868.632,259 11,041.317.386
-19.9 7,288,782,824 7,178,775,087 6,751,071,502 6,765,505,827 7,161,324,018 6,686,382.662
-27.1 15,592,440,205 15.290.803,666 14,803,186,711 14,873.742,285 14,500,818,244 13,439.170,586
-19.4 6,951,359,197 6,633,537,743 6,558.572.517 6,812.698,906 6,671,295,884 5.391.593,058
-23.0 31,827,014.769 32.717.053,551 29,472.714.999 28,903,424.957 27,121.635.413 24,420,234,648
It seems desirable also to have again the record for the
leading cities for a long series of years. Accordingly we
Insert here, as on former occasions, the following table,
carrying the comparisons back for nine years.
(000.0001
omitted.)
1928.
shares in 1925; 10,849,173 shares in 1924; 13,337,361 shares
in 1923; 9,145,205 shares In 1922; 5,165,972 shares in 1921;
7,367,441 shares in 1920; 7,308,855 shares in 1919; 2,032,392
shares in 1918; 1, 701,245 shares in 1917; 1,610,417 shares in
1916, and 715,557 shares in 1915. The total value of bonds
sold aggregated $12,480,500 in 1931 against $27,462,000 in
1930; $4,975,500 in 1929; $7,534,000 in 1928; $14,827,950 in
1927; $7,941,300 in 1926; $8,748,300 in 1925; $22,604,900 in
1924; $19,954,850 in 1923; $10,028,200 in 1922; $4,170,450 in
1921; $4,652,400 in 1920; $5,672,600 in 1919; $5,305,000 in
1918; $8,368,950 in 1917; $11,932,300 in 1916, and $9,316,100
in 1915.
On the Boston Stock Exchange the sales totaled 12,419793 shares in 1931 against 15,251,177 shares in 1930; 24,652,115 shares in 1929; 18,240,330 shares in 1928; 8,807,874
shares in 1927; 9,562,931 shares in 1926; 9,912,352 shares in
1925; 5,300,862 shares in 1524; 4,783,324 shares in 1923;
5,495,041 shares in 1922; 3,974,005 shares in 1921; 6,696,423
shares in 1920; 9,235,751 shares in 1919; 3,929,008 shares
in 1918; 5,090,982 shares in 1917; 13,078,588 shares in 1916;
12,603,768 shares in 1915; 3,522,187 shares in 1914; 5,705,588
shares in 1913; 11,134,908 shares in 1912; 7,744,737 shares
in 1911; 11,679,572 shares in 1910, and 15,507,303.shares In
1909. Total value of bonds sold in 1931 aggregated $3,370,800 against $5,599,376 in 1930; $11,147,245 in 1929; $8,726,199 in 1928; $7,742,313 in 1927; $7,153,447 in 1926; $8,141,090 in 1925; $15,613,169 in 1924; $20,294,840 in 1923;
$28,488,950 in 1922; $16,323,920 in 1921; $24,674,300 In' 1920,
and $28,039,700 in 1919.
On the Philadelphia Stock Exchange the dealings in 1961
aggregated 10,251,539 shares against 27,234,794 shares in
1930; 35,520,785 shares in 1929; 17,649,062 shares in 1928;
7,959,556 shares in 1927; 10,174,589 shares in 1026; 6,297,878 shares in 1925; 3,434,690 shares in 1924; 2,319,270 shares
In 1923; 2,456,631 shares in 1922; 1,579,470 shares in 1921;
2,367,312 shares in 1920, and 3,230,740 shares in 1919. Bond
sales were larger in 1931 and had a value of $11,153,022
against $5,882,125 in 1930; $6,057,074 in 1929; $8,287,827 in
1928; $9,401,361 In 1927; $9,087,564 in 1926; $14,310,920 in
1925; $44,418,116 in 1924; $42,996,225 in 1923; $60,444,191
FINANCIAL CHRONICLE
JAN. 23 1932.]
571
in 1922; $53,096,390 in 1921; $31,330,450 in 1920, and $5,- 236, in 1929; 49,403,086 shares, valued at $840,384,806, in
635,800 in 1919. In the Baltimore market 504,880 shares 1928; 27,082,349 shares, valued at $242,272,278, in 1927;
of stock were sold in 1931; 712,780 shares in 1930; 1,300,- 44,067,288 shares, valued at $184,727,444, in 1926; 36,230,111
707 shares in 1929; 1,019,056 shares in 1928; 919,365 shares shares, valued at $88,955,330, in 1925, and 24,131;544 shares,
in 1927; 590,730 shares in 1926; 951,426 shares in 1925, and valued at $38,585,898 in 1924. The bond sales are reported
468,063 shares in 1924. The value of the bond sales was at $623,500 for 1931 against $2,800,500 for 1930; $779,500
$3,034,300 in 1931 against $6,436,900 in 1930; $7,947,300 in for 1929; $11,351,500 for 1928; $10,707,000 for 1927; $18,1929; $9,004,106 in 1928; $12,032,800 in 1927; $7,882,500 in 392,900 for 1926; $33,243,300 for 1925, and $26,513,400 for
1926; $9,623,000 in 1925, and $8,246,000 in 1924.
1924.
On the Pittsburgh Stock Exchange the sales in 1931 were
Stock dealings on the Canadian stock exchanges were
1,625,014 shares against 3,542,446 shares (not including 446,- likewise heavily reduced in 1931 as compared with 1930.
433 sales of "rights") in 1930; 5,300,096 shares in 1929; 2,- On the Montreal Stock Exchange stock sales of listed shares
013,255 shares in 1928; 1,347,563 shares in 1927; 1,562,769 for the 12 months of 1931 were 5,264,818 shares against 11,shares in 1926; 1,778,138 shares in 1925; 1,372,711 shares 047,472 shares during 1930; 23,203,463 shares during 1929;
In 1924; 2,506,032 shares in 1923; 2,230,146 shares in 1922; 18,990,039 shares during 1928; 9,992,627 shares during 1927;
2,630,740 shares in 1921; 4,153,769 shares in 1920; 5,579,055 6,751,570 shares in 1926; 4,316,626 shares in 1925; 2,686,603
shares in 1919, and 6,072,300 shares in 1918. Total value of shares in 1924; 2,091,002 shares in 1923; 2,910,878 shares
bonds sold in 1931 aggregated $100,000 as compared with In 1922; 2,068,613 shares in 1921; 4,177,962 shares in 1920,
$284,000 in 1930; $125,000 in 1929; $187,000 in 1928; $214,- and 3,865,683 shares in 1919. The bond sales in Montreal
000 in 1927; $168,000 in 1926; $396,500 in 1925; $475,000 in were $6,611,580 in 1931 against $11,023,025 in 1930; $13,212,1924; $801,350 in 1923; $1,145,150 in 1922; $1,318,950 in 555 in 1929; $20,139,200 in 1928; $16,077,600 in 1927; $17,1921; $2,986,050 in 1920, and $4,069,800 in 1919.
807,921 in 1926; $17,715,503 In 1925; $22,153,753 in 1924;
At the St. Louis Stock Exchange transactions aggregated $38,003,500 in 1923; $48,519,402 in 1922; $67,776,342 in 1921;
380,354 shares, valued at $11,032,467, In 1931, against 548,800 $27,340,080 in 1920, and $71,681,901 in 1919. On the Toronto
shares, valued at $19,560,938, in 1930; 1,304,229 shares, val- Stock Exchange the stock sales totaled 2,973,358 shares in
ued at $60,028,711, in 1929; 1,077,984 shares, valued at $58,- 1931 against 6,638,594 shares in 1930; 10,471,819 shares in
959,638.40, in 1928; 500,601 shares, valued at $25,451,565.28, 1929; 5,916,923 shares in 1928; 4,663,042 shares in 1927;
In 1927; 382,839 shares, valued at $17,101,763, in 1926; 591,- 2,470,167 shares in 1926; 1,999,218 shares in 1925; 907,871
667 shares, valued at $32,087,323, in 1925, and 139,482 shares, shares in 1924; 1,025,923 shares in 1923; 1,214,543 shares
with a value of $12,193,180, in 1924. Bond sales were $590,- In 1922; 548,017 shares in 1921, and 670,064 shares in 1920.
212 par value in 1931 against $1,730,224 par value in 1930;
As to the Canadian bank clearings their record runs paral$1,838,556 par value in 1929; $2,365,928 par value in .1928; lel to that of the bank clearings in the United States just
$3,840,360 par value in 1927; $2,325,000 par value in 1926; as was the case in the previous year. There is this difference,
$2,355,200 in 1925, and $2,424,100 in 1924.
however, namely that in both years the ratios of decline
At Cleveland the transactions in stocks aggregated 519,460 are smaller than in the case of clearings in the United
shares in 1931 against 779,056 shares in 1930; 2,007,110 States taken as a whole. The grand aggregate of the Dominshares in 1929; 2,117,549 shares in 1928; 1,263,708 shares in ion clearings for 1931 are down to $16,840,412,406, which
1927; 1,035,383 shares in 1926; 1,859,390 shares in 1925; compares with $20,094,909,690 in 1930, $25,085,039,125 in
736,976 shares in 1924; 846,055 shares in 1923; 833,957 1929 and with $24,556,298,549 in the twelve months
of 1928
shares in 1922; 843,644 shares in 1921; 943,257 shares in and $20,566,490,856 in the calendar
year 1927. Out of the
1920; 725,970 shares in 1919; 170,463 shares in 1918; 329,478 31 Canadian cities contributing
returns not a single one
shares in 1917; 399,507 shares in 1916, and 88,065 shares
in failed to show a decrease in either 1931 or 1930. In the
1915.
Canadian total of clearings by quarter year periods in the
Dealings on the Detroit Stock Exchange in 1931
aggregated table below it will be noticed that the final quarter had
3,843,225 shares against 5,065,720 shares in 1930;
11,838,350 already suffered a decrease in 1929, the amount having
shares in 1929, and 10,605,183 shares in 1928.
Trading had fallen from $7,171,369,336 in 1928 to $6,857,231,902 In 1929;
previously keept dwindling because of the discontinuan
ce for 1930 there was a further drop to $5,164,057,073 and now
of dealings in unlisted stocks in October 1925. In
1927 the for 1931 there is a shrinkage to $4,256,846,075.
aggregate of dealings in listed stocks was 2,786,915
shares,
CLEARINGS IN THE DOMINION OF CANADA
and in 1926, 1,852,451 shares. This compares with
3,264,164
shares of listed and unlisted stocks combined in 1925
Clearings
First
Second
Third
Fourth
Mal
and Reported. Quarter.
Quarter.
Quarter.
Quarter.
Year.
2,485,894 shares combined in 1924.
$
$
On the San Francisco Stock Exchange the sales of listed 1931
S
I
$
4,148,010,920 4,632,082,461 3,803,472,950 4,256,846,075 16,840,412,406
1930
and unlisted stocks during the year 1931 amounted
4,952,120,236 5.207,727,374 4,791,115,007 .164,057,073 20,094,909,690
to 9,- 1929
6,018,432,641 8.041,113,661 8,170,260,921 6,857,231,902 25,085,039,125
875,057 shares, having a value of $160,870,689,
1928
5.540.519.953 8,224,576,655 5,819.332,605 7,171,369.336 24.556,298.549
against 15,- 1927
4,324,149,204 4,010.336.763 4,737.798,279 6.594.208.810 20.566,490.856
263,133 shares, having a value of $434,911,735, in
3,929.891,000 4,388,475,000 4,217,059.000 5,111,536,000 17,646,961.000
1930; 19,- 1926
1925
3 708,304,000 3,854.678.000 3.904,277,000 5.263,984.000 16.731,243.000
188,822 shares, having a value of $889,697,434, in 1929;
31,- 1924
3,834,897,000 3,950.010,000 4.072.622.0005.120,395,000 16,977.924.009
530,016 shares, 'having a value of $2,066,781,634, in
1923
3.606.308.000 4.158.184.000 3,864,938.000 5.702.013400 17.332.342.000
1928;
1922
3.840,001,000
4.031.429,000 3.706,793.000 4.685.682.090 16.263.805,000
15,552,507 shares, having a value of $653,521,804, in
1921
4 127.525.000 4,447.088.000 3.983.965.000 4,886.142,000 17.444.720,000
1927;• 1920
4,638.357,000 4.924,428,000 4,819,806,000 5,849.805.000 20.232.406.000
8,611,169 shares, having a value of $344,925,947, in
1926; 1919
8.329.475.0003,970.883.000 4.127.237.000 5.275.350.000 .6.702.925,000
1918
9,272,598 shares, with a value of $267,653,230, in
2.818,417,000 3.387.131,000 3.212.600.000 4.300.425.000 13,718,573.000
1925, and 1917
2,657,205,000 3.363,807,000 2,923,735,000 3.811.971.000 12.656,718,000
6,848,625 shares, valued at $102,778,333, in 1924.
1910
9 1119 91A nnn 1 1,
112 ARInnn 9 A90 AlAnnn 9996 2A9 ono in snA nut) nnn
Bond
sales at this exchange were $2,381,000 in 1931
against $2,To complete our analysis we now give the complete state457,500 in 1930; $3,384,500 in 1929; $2,857,000 in
1928;
ment of the clearings at the different cities in the United
947,000 in 1927; $13,027,500 in 1926; $25,971,500 In
1925, and States for the last eight years, classified according to Fed$38,426,000 in 1924. For the Los Angeles Stock
Exchange eral Reserve districts, and also the ratios of increase or
the dealings are reported at 5,450,543 shares, valued
at $93,- decrease as between 1931 and 1930. The Canadian bank
344,696, in 1931, as against 91171,442 shares,
valued at clearings in detail for the last eight years are added to the
$247,673,930 in 1930; 15,406,993 shares, valued
at $458,514,- extreme end of the compilations:
BANK CLEARINGS IN DETAIL FOR THE LAST
EIGHT CALENDAR YEARS ACCORDING TO FEDERAL
RESERVE DISTRICTS,
clearings at-
Year 1931.
Year 1930.
8
8
First Federal Reserve D Istrict-Bosto nMalne-Bangor
30.871,677
34,873,033
Portland
157,470,412
197,868,116
Mantscbusette--13oeton
18,373.439,759 23,080.468,729
Fall River
48,965,338
57,280,304
Holyoke
26,973,066
30,299,066
Lowell
24,476,328
38,136,771
Bedford
New
46,114,827
53,088,956
Springfield
225,083,803
243,701,444
Woreeeter
145.679,693
174,694,717
Connecticut-Hartford
589.290.195
768,282,453
New Haven
347,367,091
401,300,685
Waterbury
92,233,400
111,115,600
Rhode Island-Providence_
573,896,200
683,796,100
N. H.-Mancheeter
30,476,780
40.029,420
Total (14 olden)
lee. or
Dec.
Year 1929.
Year 1928.
%
$
$
Year 1927.
$
I
Year 1926.
Year 1925.
$
S
Year 1924.
$
-11.5
35,535,067
35,894.326
42,555.464
39,196.075
38.033.888
40,138,437
-20.4
220,868,588
202,544,646
197,891.247i
192,468,223
174.371,073
157,915,526
-20.4 27,600,034,885 25,828,975,499 26,468,065,274
25,110.34.4,097 22.431.915.310 21,323.000.000
-14.5
70,549,077
85,578,004
107,131.493
103,830,149
121.230.152
197.787.758
-11.0
33,430,307
35,209.151
46,683.818
45.061.238
49.337,294
47.091.321
-35.8
65,441,362
62,880.710
63,500.5251
56.863.614
60,689.419
60.973.339
-13.1
68,951,283
58,428,583
65.623.2911
63.1108.612
79,943,697
74.187.603
297,921,246
-7.6
296,082,028
285.174.0971
299.931,604
303,889,872
273,633,974
-16.6
96,246,099
187,941,048
190,236,628
186,483.1691
1944635,139
183,377838
-23.3 1,035,442,166
903,867.710
832,271,0771
800,645.811
763.233,783
653.780,569
-13.4
468,600,000
454,489,602
412,492.5001
873.982,839
370,464,451
358.478.841
-17.0
139,691,400
131,318,200
133,611.0001
125.216,300
139,137.904
109.544,603
-16.1
876,117,400
813,885.600
720.416.1001
714.045,000
717,576.500
621,865,590
-23.8
40,088,643
37.478.703
39.390.670
41,807,963
41.428.285
39.494.909
20,712,338,570 25,914,935,994 -20.1 31.158,917,523 29.134.573.808
29,608.240,62 28,182.070,347 25.826,891,741
24,051,259.71,9
[VOL. 134.
FINANCIAL CHRONICLE
472
BANK CLEARINGS IN DETAIL FOR THE LAST EIGHT CALENDAR YEARS ACCORDING TO FEDERAL
RESERVE DISTRICTS-(Continued).
Ckarings as-
Year 1931.
Year 1930.
$
8
Second Federal Reserve District-New York353.497.666
325,552,925
New York-Albany
70.199,795
56,384,503
Binghamton
1,929,918,055 2,604,443,330
Buffalo
51,364,283
50,753,092
Elmira
61,741.471
45,134,008
Jamestown
263,270.393,958 347,109,528,120
New York
a
a
Niagara Falls
599,571,946
494,981,674
Rochester
290,281.978
248,170,737
Syracuse
208,474,112
163,862.476
Connecticut-Stamford___ _
41,073.525
36,619,217
New Jersey-Montclair _
1,790,926,944
1,541,778,781
Newark
1,918,084,694 2,250,855,686
Northern New Jersey_
88,788,453
81,910,523
Oranges
Total (13 cities)
Inc. OT
Dec.
Year 1929.
Year 1928.
Year 1927.
Year 1926.
Year 1925.
Year 1924.
3
$
295,976,337
332,232,588
338,712,898
339,980,431
322,865.780
331,980,049
--7.9
52,802,700
80.305.169
59,325.542
88.019,910
71,452.235
78,010,459
--19.1
--25.9 3,395,939,862 2,849,817.173 2,735,748,437 2,728.662.610 2,781,546,912 2,310,148,597
42,537,314
53,208,893
49,071,454
53,788,254
58,298,891
59,094,042
--1.2
77,417,836
63,048,686
77,093,639
73,230.583
89,884,850
71,092,338
--26.9
_-24.2 477,242,282,161 391.727,476,264 321,234,213.681 290,354.943.483 283,619,244,837 249,868,181,339
54,933,844
51,402,385
55,359,559
83.203.418
66,051.202
78,778,486
598,939.497
867,924,306
684,858,080
729,305,528
850,955,176
778,900,082
--17.5
301.561,843
261,665,876
319,368.064
338.123,241
346,594,405
384,869.476
__14.5
101,713,196
183.262.198
188,037,428
200,103,084
215.081,704
240.409.568
__21.4
31.255,790
34.100,200
42,494.630
46.047,766
47,157.825
50,227,722
--10.8
088,486,297
--13.9 1,873.545,343 1.520,154,962 1,374.097,957 1,309,996.214 1,129,083,897
1,779,262,851
1,762,919,810
2,038.418,587
2,221,489,574
2,139,849,283
2,797,244,114
_-14.8
60.134,293
69,760,864
78,015,034
87.766,388
80.958,890
97,011.847
--7.7
298,325,474,068 291,122,385,917 256,565,553,138
270,163,544,553 355.520,097,309 _24.0 487,551,440,643 400,416.198.002 329,460,401,556
Third Federal Reserve District-Phil adelphla73,609.909
78.352,550
84,490.339
80,669,927
86.818,244
78,710,687
68,868,072 -47.0
36,463,854
199,810,058
Pennsylvania-Altoona. _
217,585,765
238,163.397
245,797,295
246,606,709
276,486,497
225,717.798 -23.6
172,417,920
Bethlehem
66,880,312
77.529.200
73,814,118
67,798,586
74,320.524
63,824,255
-15.8
54,190,321
45,621,398
228,139,000
Chester
253.681,837
253,099,487
246,312,192
248,128,739
247.771,510
222,550,947 -22.3
172,873,869
149,971,474
Harrisburg
115,810,401
118,782,669
111,963,090
108,996,383
115,838,586
100,081,996 +19.4
119,589.815
Lancaster
30,335,728
33,643,772
32.485,324
32,773,481
35,265,231
33,580,050
34,870,724 -19.1
28.219,603
45,721,320
Lebanon_
55,109,799
47,836,493
52,385,945
46,949,014
48,945,988
-14.1
38.811,301
33,320,868
Norristown
29.258,000,000 29,079,000,000 25,645,000,000
31.837,000,000
28,354,000.000
29,371.000,000
-25.3
26,360,000.000
19,701,000,000
Philadelphia
178,975,851
197,491,250
219,885,671
223,751,703
221,391,913
225,803,124
178,233,147 -15.1
151,266,900
Reading
318,740,033
304,448,208
326,296,868
335,876,651
329,092,841
330,825,930
245.741,796 -12.8
214,088.598
199,586,437
Scranton
208,029,953
191.824.257
212,591.319
206,040,804
210.527.730
-17.0
178,381,878
148,081.121
91,680,586
Wilkes-Barre
97,955,116
99,618,300
98,368,743
106,563,636
112,795,414
105,501.365 -16.6
87.995,778
648,618,036
York
706,645,894
163,586,890
142,807.716
133,901,188
133.294,254
118,145.203 -28.2
84,836,000
281,813,967
New Jersey-Camden
327.539.087
320.956,375
281.468,066
342.917,863
352,521.057
-5.3
220,839,000
216,600,000
Trenton
31,761,036,681 28.144,370.888
21,212,375,322 28.151,933,548 -24.7 33,989,427,506 31,664,665,027 30,564,388,289 31,434,918,164
Total (13 cities)
eland
-Cloy
District
Reserve
Federal
Fourth
312,480,000
399,027,000
316.985.000
336.895,000
349,750,000
387,108,000
244,201,000 --37.0
142,973.000
240.417,716
Ohio-Akron
212.805.852
234,573,321
213.842.119
252,951,681
224,145,594
209.510,783 --40.2
x114,405,071
Canton
--11.5 3.910,555,73(- 3,901,292.187 3.877.324,829 3,885.182.015 3.709.995,616 3.353,396,387
3,202,938,421
2,837.577.247
Cincinnati
5,441,304,185
5,996,668,609
6,178.768,145
6,457,413,647
7,964,234,471
6,913,067,391
--22.9
5,123,450,082 6,637,913,338
Cleveland
729,097,000
880.312,600
802.748.100
922.793,200
905,967,900
893,035.600
792,932,400 --24.1
602,282,400
42.123.639
Columbus
45,642.269
49,398,905
47,674,711
67,219,607
60,404.063
48,898.612 --23.2
36,640,370
Hamilton
22,357,078
26.169,237
23,936,686
22,970,232
24,346,327
--19.4
22,841,750,
18,490,723
13,906,676
94,969,676
Lorain
103.342,812
108,577,509
101,512,961
109,509,897
102,668,923
93,261,261 --31.9
x63,516,115
Mansfield
230,550,078
271.710.112
278,698,371
289,968,195
--39.9
322,937,297
305,765,883.
259,844,804
x156,359,778
Youngstown
38.948,907
38.335.888
39.349,484
37,485.477
37,331,534
29,492,205
23.384.039 --28.8
16,603,484
16,788.458
Fa.-Beaver County
17.863,881
19.632,402
15.890.477
11,361,737
13.517,047
9,358,775 --22.8
7,229.156
64,900,200
Franklin
80.384,053
74.122,404
74.377,495
77,217,585
-52.1
74.753,771
81,102,560
38.941,357
8,036.969.344
Greensburg
8.856,572,090
9.197,686,606
9.289.443.577
6,655,620,424 9,246,960.336 --28.1 10,162,939,978 9,452,671,780
93,140,288
Pittsburgh
08,886,981
95.372,164
99,877,333
108,149,087
106,365,130
82,259.046 --24.5
62.092.335
219,210,840
Kentucky-Lexington
226,340,773
221,819.602
225.273.023
249,428.939
242,676,240
194,767.150 --26.9
142.325.210
West Virginia-Wheeling_
19,023,200,794
16.013.922,705 21,145,822,948 -23.8 24,535,091,978 22,728,442,163 22.012,742,278 21.582,647,725 20.822,872,742
Total (15 cities)
Fifth Federal Reserve D istrIct-Richm ond58.337,080
30,830,709
West Virginia-Huntington.
213,137.682
178,403,799
Virginia-Norfolk
1,748,565,239 2.286.520,865
Richmond
117,088.662
85,568,908
North Carolina-Raleigh
84.584.417
110,235,165
South Carolina-Charleston
101.035.483
108,282,902
Columbia
3,851,615,868 4,820,464.324
Maryland-Baltimore
24.658.271
18,963,999
Frederick
31,730.772
25.236.388
Hagerstown
1,233,278.777 1,317.607.594
D. of C.-Washington
Total (10 claw)
7.358,081.587
--45.1
--18.3
--23.8
--26.9
--23.4
--17.4
--20.2
--23.I
--20.2
--8.4
63,130,826
247,128,060
2,333.296,114
125.618,965
114,752,998
117.079,29E
5,288,948,733
24,775,584
40,444,345
1,481,390,729
64,106,999
274,434,033
2,319,531,349
133,279,700
117.606,167
112,903,990
5,260.041,574
24,584.650
42,7,89,059
1.435.725.603
84,595.000
434,725,868
2,839,368,382
144,447,129
132,823.778
94,252.877
5,832,393,840
24,216,680
40,209,789
1,353,278,092
95,430.118
410,030,506
2,823.259,786
127,834,023
128,720,868
100,924,588
5.025,334,741
22,302,730
39,454,460
1,167,398,426
9.076,063,317 -17.9
9,834,565,649
9,785,185,874 10.335,542,052 10,901,020,215 10.980,309,435
9,940,690.246
a
180,300.810
1,234,935,792
2,927,843,030
114,504,545
63,214,764
90,958,461
778,250,904
142,316,000
136,305,461
1,277,239,054
109,339.262
88,121,435
85,913,000
111,691,055
45,168,531
17,457,100
2,734,424,704
a
170.009.256
1,179,685,804
2.679,446.146
103,544.775
59,574,007
118,457,221
835,268,613
143,364,000
184.472.445
1,283,850,241
95,104,890
87,188,580
90,143.000
108,612,955
45.763,096
22,578,709
2,907,752,752
373,405,137
162,354.714
1,122,203,951
3,604,290.297
110.907.207
55,948.341
92.439.419
1,446,158,867
1,066,528,874
461,800,170
1,372,382.901
106.497,788
93,706.133
91,157,667
79,106,248
45,737,142
22,873,142
3,169,573,524
328.290.641
180,661,525
1,012,243,160
2,895.571.945
99,663,868
45,680.188
78,296,104
808,093,771
212,353.780
195,979,545
1,367,180.827
95,917,771
89,029,098
77,703,590
21,165,040
67,124.323
44,942,766
2.986.178.447
Sixth Federal Reserve D IstrIct- Atlan taa
a
Tennessee-Chattanooga
143,741,364
144,145,834
Knoxville
528,043.516 1,078,748,051
Nashville
1,835.600,000 2.258.286.150
Georgia-Atlanta
89,214,260
68,233.406
Augusta
18,242,835
35,921.053
Columbus
38,868,396
72,467.235
Macon
589,169,980,
675,293,206
-Jacksonville
Florida
a
a
Miami
88.717,724
73,091,6381
Tampa
1,010,297,655
_
_
668.758.940
gham__
Alabama-131rmin
96,642,806
67,631,437
Mobile
56,258,519
36.472.025
Montgomery
71,415,000
54,814,000
Mississippl-Battlesburg 108,145,650
72,851.103
Jackson
33.982,638
20.051,882
Meridian
9,958,037
7,230.656
Vicksburg
2,010.081.171 2.315,469.043
Louisiana-New Orleans
Total (16 cities)
6,250.965,037
Eighth Federal Reserve
Indiana-Evansville
New Albany
Missouri-St. Louie
Kentucky-Louisville
Owensboro
Paducah
Tennessee-Memphis
Arkansas-Little Rock
Quiney
Total(9 cities)
--17.6
--33.9
--27.2
--35.2
--21.9
--22.5
--40.9
--27.4
--13.2
427,694,713
171,715,288
1,108,811,102
2.688.483,712
112,844,59)
56,220,343
113,724,379
1,002,493,423
260,039.000
237,515,432
1,332.515.451
100,138,512
88,435,870
92,801,751
96,292,35F
51,217,929
21,788.666
3,055.799,395
79,673,600
438,943,130
2.610,110.000
137,166.758
129.485,413
92,220,790
5,953,736,235
25,429,360
41,693.977
1,392.580.952
408,846,266
169.432.729
1,126.611,577
3,055.832.656
109,335.360
55,878,556
98,414,790
1,505.427,663
632,867,020
414,418,178
1,337,643.645
109.203.325
85,733,107
104.220,743
88,596.211
47,121.300
21,823,478
3.084,716.952
8,156.811.273 -23.4 10,118,23.1,208 10,114,722,180 11,108,531.915 12.456,123,556 13,477.069.522 10,586,076,389
Seventh Federal Reset' c DIstrict-Ch icago10,745,160
8 180171
Michigan-Adrian
46,278,924
41.590,133
Ann Arbor
8,440,151,513
6,167,174.197
Detroit
145.865.362
108.036,196
Flint
287.853.084
226.598,531
Grand Rapids
57,646.083
39.554,042
Jackson
175,838,800
145.420,362
Lansing
166.730.598
105.873,979
Indiana-Fort Wayne
253.971.064
174,387.000
Gary
849,784,533 1,092,108,000
Indianapolis
135.223.195
89,275.411
South Bend
263.191.437
218.426,393
Terre Haute
136,958,500
119.292.200
Wisconsin-Madison
1.156,535,379 1.487,453,843
Milwauke a
40.009.150
30,488,526
Oshkosh
158,788.202
119,839.034
Iowa-Cedar Rapids
637,723.686
543,981.296
Davenport
439.220.462
335.156.684
Des Moines
24,256,693
17.648.595
Iowa City
298.998.273
202.166.116
Sioux City
71,518,177
37,553,768
Waterloo_
53.739.239
41.727.767
92,540,349
74,452,752
Bloomington
19.201.221.287 28,707.627.136
Chicago
62.009.970
45.262,258
Decatur
233.987.210
158,019.016
Peoria
156,682.125
94,715.140
Rockford
133.250,054
111,633.366
Springfield
Total (28 cities)
+0.2
-40.9
-18.8
-23.4
-25.6
-46.4
-12.8
68,727.520
308,349,887
2,517.251,589
140,724,518
122.430,598
105.661,217
5.618,191,924
25,616,114
42,691,258
1,385,897,427
12.333.817
12,8S1,871
12,884,211
14.494,728
13,944,164
14,764,327
--14.5
45.246,243
59.356,150
52,723,702
50,768,694
55.414,307
54.821,896
--10.2
--26.9 11,558,165,403 10,433,524,569 8,770,133.565 8,813,261,202 8.430,797.003 7,355,598,022
120,053,976
150.681,429
125,846,805
203.851,522
180,332,538
220,442,316
--25.9
363,187,181
431,880,060
415,171,313
412.852,920
4413,963.469
383,723,194
--21.3
87.684,083
92,142,380
95.2:14,799
110,245,863
110,562,917
--31.4
105,172,135
128.430,042
142,451,107
140.964,419
166,323,468
142,867.854
203.161,895
--17.3
127,312,901
153,161,060
158.338,950
147.658.263
175,910,705
209,224,323
--38.5
210,616.956
322,544,570
309.886.459
267,637,178
298,790,097
296,543,662
--3I.3
984,874,000
904,278.000
--22.2 1,286,073,000 1,207.652,198 1,207,528.916 1,191.869,000
162.609,400
123,684,785
160,969,629
163,442,166
151,241,800
166,260,154
--33.9
285,451,373
310.964.897
300.965,151
277.537,067
304,297,487
282.846,687
--17.0
186.207.563
133,704,284
188,137.234
186,048,289
162,735.232
161,114,961
--I2.9
--22.2 1,825,350,991 2.158,202,569 2,246.371,313 2.260,177.699 2,062,451,850 1,911,755,916
38,657,285
51.943.192
49,005.198
53.085,295
44.312.208
49,445,90(
--23.8
126,526,081
139,254.664
147.406.458
138,901,696
153.225,584
166,327,972
--24.5
550,774,269
538.435,921
518,676,842
620,897,859
610,259,307
672,066.653
--I4.7
558,805,547
546,115.415
515,292.642
507,721,340
572,052,611
527,409,513
--23.7
24,709,215
25,775,238
25,934,934
22.075.364
20,207,664
25,545,078
--27.2
333,558,857
324.6813,291
336,873.140
367,858,973
560,969,498
362,277,589
--32.4
77,441,968
85,414,012
66.654,559
69,689,317
74.148,880
83,009,006
--47.5
63.886,388
88,742,508
82.120,290
79,004,498
70,444,245
66,784.797
--22.4
75.850,204
84,152,299
84,849.481
86.680,608
96.829,609
103,365,518
--19.5
--33.1 36,713,580,962 37.842,393.658 35,958.215,634 34,907,132.946 35,391,593,578 31.653,583.949
71,550.841
70,376,309
69.799,500
77,593,249
69.391,689
66,854.298
--27.0
237,583,061
'253.540,410
262.800,045
240,174.212
284,704,052
309,660.998
--32.5
129,299,719
180.484.298
170.363,037
148,670.755
189,231,847
205,308.336
--39.5
130,597.841
136.403,765
147,894,237
145.548,018
143,425.697
144,937,325
--I6.2
52,677.335.684 51.841,391.122 51,302.734.279 45.989,493,112
30,463,994,163 43,810,366,289 -30.4 56,270,138,889 58,385,204.739
District-St.L ouls241.354.305
209,875,510
8,858.206
11,776,615
4,587,620.932 6,140,332.080
1.134.398.884 1.850.136,498
20.386.427
13,908,091
104.085.592
83.876.121
954.000.029
680.399,481
a
a
10.567.352
7.603.089
60.986,238
40.480.301
6.729.939.023
-13.0
+32.9
-25.3
-38.7
-31.8
-38.6
-30.8
-28.1
-33.6
277,018,070
9,533.727
7,278,217,025
1,940,887,905
21,782,550
129,177,974
1,239,779,882
791.041,157
20.773.724
78.402,412
260,206.749
9.164.551
7,566.304,781
1,936,030,886
20,564.267
121,009,600
1,172,927,187
748,244,471
18,994,907
79.547.231
305,203,072
9.822.6 43
7,387.457.173
1,879,529.149
19.692,702
117.795.779
1,191.854,410
740.952.228
19.932,176
84.774.575
280,656,784
9.789,770
7.631,792.498
1.781.961,052
19,749.879
112,093.719
1,196,581,429
754,627,362
21,557,265
85.897.544
281,939,450
9,030.201
7.626.579,123
1,743,689,890
21,826.590
110,568,863
1,232.818,801
735,856,786
22,230,884
84,091,871
258,034,180
8.387,513
7,174.033,847
1,611,927,608
22.850,180
119,906.430
1,114.087,697
640,360,864
17.303.432
74,825.655
11,041,317.386
9,396.706.727 -28.4 11,787,219,456 11,932,994.630 11,757.013.950 11,894,757,283 11,888,832,259
JAN. 23 1932.]
FINANCIAL CHRONICLE
573
BANK CLEARINGS IN DETAIL FOR THE LAST EIGHT CALENDAR YEARS ACCORDING TO FEDERAL
RESERVE DISTRICTS-(Concluded).
Year 1931.
Clearings atNinth Federal Reserve
Minnesota-Duluth
Minneapolis
Rochester
St. Paul
North Dakota-Fargo
Grand Forks
Minot
South Dakota-Aberdeen
Sioux Falls
Montana-BIIIIngs
Great Falls
Helena
Lewistown
Total (13 cities)
Year 1930.
$
$
District-Min neapolls206,222,340
279,895,777
3,172,021,285 4,016,265,425
16,116,042
28,948,330
1,016.105.672 1,200.088,456
98,629.575
102,983,785
73,206,000
83,571,000
14,096.306
20.082,098
40.694.983
53.202.133
77.531.404
99.433.856
26,844.486
33,136,648
40,200,012
54,660.708
129,487,579
158,239,335
3,119,445
4.736.821
4,913,275,129
Year 1929.
Year 1928.
Year 1927.
Year 1926.
Year 1925.
%
8
$
s
$
$
Year 1824.
$
-26.7
-21.0
-44.3
-15.3
-4.2
-12.4
-29.8
-23.5
-22.0
-19.0
-26.5
-18.2
-34.1
390.823,396
4,705,231,843
32,731,386
1,437,575.407
109,463,285
96,786,000
25,842,392
63,504,526
99,565,044
33,736,025
72,724,161
188,049,416
7,749,743
439.673,409
4,419,814,371
33,204,246
1,626,311,125
103.492,356
72,127,000
22,749,082
72,551,959
86,345,219
38,765,611
69,659,550
184,725,683
9,555,476
485,061,789
4,094.562.453
32.123,424
1,558.483.398
110.360,797
72.139,000
17,801,540
66.757.056
82.668.196
34.521,615
55,408.877
163,987.351
9.216,006
414,865,676
4,110,311,738
28.236,650
1,617.454,198
97.024.377
70.908,000
15.705.910
76.436.738
79,223.998
32.104,577
47,337,663
166,861,271
9.035,033
498,450.286
4,482.950.450
22.880,408
1,631,459,933
85,801.746
74,480,000
13,487.998
77,750,830
61,037,892
32.928,493
40,201,009
152,712.443
7,382.530
504,915,852
4,025,843.109
20,618.429
1,817.749,110
94,406.016
68.235.694
12,227,853
69,714.916
54,408,657
28,233.717
34,391,079
135.471,553
6166,671
6.135,244,372 -19.9
7,268,782.624
7,178,775,087
6,751,071,502
6,785,505,827
7.181,324,018
6,666.382,662
19,871,632
30,058,879
208,468,855
2,397,776,990
114,549,255
188,162,771
440,147,018
70,482,268
7,451,137,423
361,895,823
a
1,646,089,362
636,799,100
74,753,629
1,861,410.591
90,836,614
20,851,129
28.820.191
246,146,704
2,311,920,165
109,011,087
193,908,504
480.707,432
70,680,927
7,254,046.094
364,887,906
a
1,568,022.225
830,886.313
70,177,437
1,863,583.691
77.153,861
20,858,808
24.570,478
254.013,059
2,102,408.685
121,218.030
172.613,529
424.562,352
81.691.204
7,245.050,814
337.727.941
a
1,555,022.655
596,642,699
64.167,032
1,732,674,525
69.302.494
19,738,367
28,008.329
245,980.286
2.103,548.186
213.374,463
179.148,598
435,778.140
93,584,411
7,301,562,157
375.642,241
10,281,304
1,526.008,448
527.417,855
81.750,994
1,688.644,834
63,275,613
22,396,587
32,596.380
254,049,952
2,188,210.683
213.127,476
184,941.687
401,638,512
89,178,302
7,036.471,383
392,705,388
14.727.154
1,443,875.836
438.148.418
63,581,225
1,687,800,725
59,266,536
21,457,420
28,341,820
215,769,668
2,004,488,419
236,428,504
153.019,279
388,348,065
77,214,000
6,581.628,797
364.481.235
15,134.877
1,283,152,230
351,403,042
58,755,109
1,611,163,932
50,384,169
Tenth Federal Reserve District-Kan ass CityNebraska-Fremont
12,977,782
18.296,319
Hastings
16,382,735
26,305,091
Lincoln
147,152.318
175,817.374
Omaha
1,724.857,290 2,183,257,401
Kansas-Kansaa cuy
119.217.029
109,882,111
Topeka
134,079,333
170.679,470
Wichita
258.977.982
366.334.805
Missouri-Joplin
25,247,753
47,687,133
Kansas City
4,399,881,852 6,302.246,728
St. Joseph
202.405,835
289,851.742
Oklahoma-MeAlester
a
a
Oklahoma City
a
a
Tulsa
487,606,64
304,545,105
Colorado-Colorado Springs
51.016.097
61.740,65
Denver
1,295,070,787 1.694.207,214
Pueblo
62,042,178
79,301,193
Total (14 cities)
Inc. or
Dec.
-20.3
-37.7
-16.3
-21.0
+8.5
-21.9
-29.3
-47.1
-30.2
-29.8
-37.5
-17.4
-23.6
-21.8
8,754.834.078 12.011,213,880 -27.1 15,592,440,205 15,290,803.866 14,802,520,305 14,873,742,285 14,500,818,244
13,439,170,566
Eleventh Federal Reserv e District-Da liesTexas-Austin
76,981.831
79,429,043
Beaumont
75.506.339
. 96,974,276
Dallas
1.803.330.859 2,122.364.049
El Paso
207,711,013
298,613,604
Fort Worth
520.252.889
380.876,507
Galveston
132,167,000
179.440,290
Houston
1,385,063,619 1,676,248.710
Port Arthur
35,361,870
23,383,175
Texarkana
a
a
Wichita Falls_
100.312,041
52,992,000
Loulslitria-Shreveport
17p,470,477
237.800,692
Total (10 cities)
4,305,930,032
-3.3
-22.1
-15.0
-30.4
-26.7
-26.3
-17.3
-31.7
-47.2
-28.3
97,763,410
113,183.692
2,881,787,579
324,538.201
744,516,447
284,292,000
2,008.863,85
42,640,553
33.302,527
130,005,246
200,465,691
94,312,924
103,414,000
2,783,610,484
295,164,967
729,207.147
308,486,000
1,825,696.257
29,243,695
33,372,049
133,219,435
297,809,785
84,938.478
102.736.000
2,651.392,000
254,780.035
656,641.904
440.218,000
1,872,575.124
32,292,812
34,385,522
146.825,000
281.789,584
85,870.973
87.755.313
2,518,137.847
252,853,538
743,352,878
598.903,000
1,881,077,054
29.893.340
37.614.237
182,772.225
279.361.853
105,349.233
73.708.101
2,556.829.919
252,882,072
652.152,962
519,951,000
1,765,968,080
26,832,869
42,558,699
170,705.772
276,453,983
84,597,962
71.558,763
2,213,834,883
252,557.446
623.989,586
478,068,314
1.578,359.500
28,180,365
35,208,514
119,265,646
246,209,808
5,344,350,252 -19.4
6,951,359,197
8,633.538,743
6,558,572,517
8,812.698,906
6,571,295,884
5,891,593,056
Twelfth Federal Referee District-San FranciscoWashington-Bellingham
33.466,194
50,040.884 -33.1
47,274,000
42,524,000
48,641,000
48.055,000
45,251,000
40,148,000
Beattie
1,563,461,845 1,997,926.280 -21.7 2,653,702.788 2,542,920,892
2,366,923,226 2,352,953.405 2,205.404,626 2,030,249,570
Spokane
466,630,000
569,737,000 -18.1
677,345.000
704,091,000
663,295,000
644,971,000
606,901,033
573,914,864
Yakima
42,897,787
60,000,038 -28.5
87,403,918
81.862,225
77,903,882
78,171,284
82,266,636
Idaho-Boles
70,041,478
67,401,994
72,789,413 -7.4
75,070,229
67.270,426
63.271,668
59,201.417
57,198.886
55,204,184
Oregon-Eugene
15.124,000
21,303,239 -29.0
26,603,724
25,408.725
26,000,750
28.038,489
27,542,807
22,483,880
Portland
1,384,174.312 1,789,799,112 -21.8 2,074,370.046 1,985,888,152
1978,932,087
2,103,840,202
2,015,148,908
1,898,910.859
Utah-Ogden
48,712,606
82.968,375 -41.3
97,404,763
95,237,940
88.612.536
83.084,509
108,213,000
75,834,000
Salt Lake City
715,077,870
917.786,774 -22.1 1.035.216,759
953,583.888
924,051.847
922,163,600
898.102,610
804,709,503
Nevada-Reno
a
a
a
a
35.368,955
35,923,678
35,036,112
31,832,496
Arizona-Phoenix
156,930,482
199,040,000 -21.2
243,368.000
196,964,000
153,160,900
135,689.000
121,928,000
110.490,149
California-Bakersfield
48,426.908
87.256,303 -44.5
75,984,675
69,675,323
87,109,144
66.884.028
59,438,319
49,854,551
Berkeley
200,954,408
232,253,78 -13.5
255,711,123
264,818,148
283.145,486
232,803,013
220.021,829
207,836,127
Fresno
a
a
234,749,359
202,467,913
227,342,851
231,399.177
201,331.828
200.208,229
Long Beach
272,436,183
365,062,99 -25.4
455,777,616
427,047,254
369.056,937
367.054,556
332,122,723
369,536.444
Los
a
10,066,695,000 10,825,705,000 9,381,948.000 8,917,424,000 7.945,493,000
7,194,525,000
Angeles2
Modesto
30,577,718
50,561.88 -39.5
59,977,580
49,969,110
45,510,934
48,203,317
44,958,841
39,107,843
Oakland
a
a
1,020,614,221 1,046,040,933
969,103.848 1,077,033,672 1,063,291,078
845,144,456
Pasadena
240,082,600
293,876,84 -18.3
364,472,854
359,077,275
350,763,585
334,578.791
310,599,694
293.184,216
Riverside
41,590,830
49,585,87 -16.1
60,739,928
54,163,780
57.372,851
52,790,322
42,786,332
39.932,002
Sacramento
389,910,876
354,648,30
+9.9
394,181,830
387,204,230
400.244,548
442,501,119
450,001,211
San Diego
430,134,192
217,365,451
276,387.90 -21.3
326,932,602
301,403.758
292.706.408
315.225,056
269,815,389
215,183,262
San Francisco
7,142,159.353 9,558.593,66 -25.3 10,938,051,445 11,491,219.372 10,117,987,269
9,799,768,682 9,479,484,458 8,366,230.630
Ban Jose
132,151,816
157,352,61 -16.0
190,592,939
174,259,282
148,888,528
158,055.183
143,791,357
Banta Barbara
126,497,742
86,054,117
104,427,92 -17.6
106,813,576
92,052,377
78,281,207
76.943,883
Santa Monica
73,009,035
62,145,992
82,058,604
102,745,95 -20.1
104,376,297
113,842,117
113,320,549
119,396,678
Santa Rosa
105,354,048
99,881,868
a27,204,797
27,024,331
26,217,243
26,408,238
Stockton
26,577,953
25,412,496
81,320,606
1087272,700 -24.8
135,379,700
135,736,100
141,554,400
140,867,700
150,581,700
132,600,507
Total (24 cities)
13.458,966.367 17,482,397,665 -23.0 31,827,014,769
32,717.053,551 29,472,714,999 28,903,424,957 27.121,635,413
24,420.234.546
Grand total (179 cities) 410.338,168,564,542,243,060,904 -24.3
726,884,632.647 833,872,155,470 555,109,075,670 523,773,772,455 512,215,805,135
455,759,342,491
Outside New York
147,067,783.608 195.133.532.784 -24.6 249.642.350.486
242,144.679.206 255 574 562809 223 415 525 072 225 non AM 405 971$1.717717472
__ ...
CANADIAN BANK CLEARINGS FOR THE LAST
EIGHT CALENDAR YEARS.
Clearings atMontreal
Toronto
Winnipeg
Vancouver
Ottawa
Quebec
Halifax
Hamilton
Calgary
St. John
Victoria
London
Edmonton
Regina
Brandon
Lethbridge
Saskatoon
Moose Jaw
Brantford
Fort William
New Westminster
Medicine Hat
Peterborough
Sherbrooke
Kitchener
Windsor
Prince Albert
Moncton
Kingston
Chatham
Barn%
Sudbury
Total(31 cities)
Year 1931.
$
5,773,473,678
5,134.895,410
2,253,265.542
815,227,628
323,349,843
285,394,664
150,986.611
247,414,617
319.979.949
115,510,903
95,261.089
145,511,214
231.243,017
193,488,878
21,015,875
20,813,283
89,784.763
38.151,255
48,891,243
34.737.532
31,111,821
12,319,717
38,028.819
37,092,829
50,209,227
149.917,403
19,749,372
38.911,582
35,591,744
27,278,588
25,489.520
38,319,005
Year 1930.
$
6,917,957,798
6.036.838.536
2,517,469,597
914,132.520
372,586,710
339,596,344
174,720,945
310,976.401
451,865,100
124.234,187
125,903.653
168,006,976
296,550,901
252.891,214
26,763,125
29,064,091
117,776.087
59,359.874
58,149,011
43,514,483
43,641,532
17,302.533
47,057.618
45,958,555
63,411,042
214,689,007
22,887.312
51,039,289
44,029,368
32,213,088
36,465,041
57,857,754
Inc. or
Dec.
%
-16.5
-14.9
-10.5
-18.0
-13.2
-15.9
-13.5
-20.4
-29.1
-7.0
-24.3
-13.3
-22.0
-23.4
-21.4
-28.3
-23.8
-3.5.7
-15.9
-20.1
-28.7
-28.8
-19.2
-19.3
-20.8
-30.1
-13.7
-23.8
-19.1
-15.3
-29.9
-37.2
Year 1929.
$
8,279.414,820
7,721,361.164
3,393,339,677
1,243,625,652
443,895,304
375,097,862
197,539,725
350,828.242
667,718,733
151,865,016
151,226,015
183,916,716
358,982,727
341,917,650
35,403,096
38,807,465
146,732,755
72.492,575
76,811,637
52,807,241
52,236,137
26,445,424
51.283,226
54,664,850
71,102,678
303,189,777
27,389.870
53,623,914
46,678,714
41,710,000
42,932.463
Year 1928,
$
8,072,843,473
7,674,586.731
3,443,151,987
1,100,937,564
431,183,371
361,754,092
185,879,424
337,854.407
666.517,374
150,693,371
134,095,845
180,871,381
351,324,768
312.089,792
38,728,824
40,772.004
138,787,497
73,510,635
72,529,308
59,588.922
44,774.994
26,802,962
49.138,361
50,623,174
66,300,152
280.032.888
25,131,848
49,388,221
46,174,083
43,568,049
37,854,684
Year 1927.
$
6,771,872,659
6,484.586.731
2,794,527,877
924,784,859
374,560,769
349,324,254
163.572,908
298.400,645
436.380,336
134,755,457
117,462,545
167,784,864
288,552,842
259,733,292
31,888.338
31,878,544
109,929.060
69.893,412
63,899,387
51,979,079
42.108.115
18,017,757
45.621.253
47.448.683
60.999,516
243.913,681
20.755,563
45.899.119
42,541.149
41,681,478
35,936,684
Year 1926.
$
5,648,347.421
5,198,428,183
2,708,415,764
888.704,118
338,607.358
319,659.404
150.800,492
268,402,609
393,910,637
136,226,527
110,885,953
142,856,910
259,611,119
240,953.818
31.005,956
29,585,732
103.237.697
64,190,200
55.117,564
48,102,058
39.253,110
15.462,521
41.385,282
44.259,492
51,757,433
219 129,742
20.193,964
44,207,861
38,282.486
Year 1925.
$
5,143,250,794
4,914,652,246
2,892,378,815
807,197.610
328.882,264
296,888,697
153,908,814
250,224,656
355.320,700
131,306,092
101,269,481
138.640,609
239.350,281
225,429.503
31,805,295
28,311.024
91.330,853
61,188.405
50,714,486
43,110,272
33,049,655
15,359,304
40,564,340
42,169,856
49,231,111
172,716,001
17,347.712
41,258,874
30.429,834
Year 1924.
$
5,353,492,402
5,255,433,823
2,682.695,199
803.051,359
332,140,501
291,278,519
148,486,287
255,781,872
343,415,333
133.734.811
108.146,581
140,878,932
220,329,884
179,302.867
29,790,999
27,718,855
83,355,958
58.471,697
46,050,687
48,122,903
30,816,500
16,483,668
0,621.733
41,432,014
48,875,800
164,187,439
10,572,703
41437,923
35,733,839
18.840.412,406 20.094.000.600 -16.2 25.085.039,125
24,556,298.549 20.566,490,856 17,646,961,411
16,731,243.264 16,977.924.066
[VoL. 134.
FINANCIAL CHRONICLE
574
The Course of the Bond Market.
Significant developments affecting the bond market have
been few during the past week, with the result that in almost
all groups fluctuations were confined to a narrow range.
Declines predominated in the domestic list, however, and
on Friday's close the indicated price for the 120 domestic
issues was 74.25, as compared to 74.77 one week earlier.
In the foreign section moderate advances in price brought
the average yield for the 40 bonds to 13.15% as contrasted
with 13.44% at the end of last week and 7.01% one year ago.
The only domestic group, on the basis of quality, which
scored an average price increase during the week were the
lowest rated, or Baa bonds, where the yield average dropped
from 8.84%, recorded last Saturday, to 8.80% six days
later. Prices for Aaa and A bonds fell slightly, while the
average for the An obligations was exactly the same as on
Saturday. The railroads staged a fairly impressive rally,
based principally on hopes of a voluntary wage cut acceptance, but prices tapered off as the week drew to a close and
a
the hope had not been gratified. Utilities also gained
over
y
moderatel
down
were
industrials
little ground, while
the seven-day period.
week.
One change has been made in the list during the
rated
1952,
of
4s
sec.
Pacific
&
The Chicago Rock Island
Bat", have been substituted for the Chicago Terre Haute &
Southeastern 1st & refunding 5s of 1960. The usual adjustment was made in the railroad averages in consequence.
The regular weekly tables are given below:
of reserve funds and undivided profits, issues for conversion or redemption
of securities previously held in the United Kingdom, short-dated bills sold
in anticipation of long-term borrowings, and loans by municipal and county
subauthorities except in cases where there is a specified limit to the total
scription. They do not include issues of capital by private companies
except where particulars are publicly announced. In all cases the figures
are based upon the prices of issue.
THE
SUMMARY TABLE OF NEW CAPITAL ISSUES IN
UNITED KINGDOM.
(Compiled by the Midland Bank Limited)
1919
1920
1921
1922
1923
1924
1925
NEW CAPITAL ISSUES IN THE UNITED KINGDOM, BY MONTHS.
(Complied by the Midland Bank Limited)
1931.
1929.
1930.
1928.
£12,332,412
£16,925,542
£47,418,161
£33,794,534
January
19.606.243
26,154,781
33,047,526
27,871,778
February
13,446,859
26.384,167
33,781.109
41,695,433
March
1,687,195
21.270.785
34,767,420
18,606,444
April
11,009,880
37,899,317
21,131,112
39,275,330
May
12,832,397
13,225.111
25,397,926
41,372.346
June
5,184,993
16,432,065
22,211,044
41,820,109
July
1,666,492
6,559.832
6,512,4003,592,305
August
1.315,308
2,664,579
5,039,251
18,305.996
September
2,482,875
30,496.787
11,509.702
40,598,510
October
4,409,179
19,909,853
12,945,198
27,969,767
November
2,692,359
15,862,175
5,283,190
24,696,516
December
£362.519,163 £253,749,272 £236,159,666
Year
by.Groups.
Jan. 22
21
20
19
18
16
Jan. 15
14
13
12
11
9
Jan. 8
7
6
5
4
2
1931-WeeklyDee. 31
24
18
11
4
Nov.27
20
13
a
85.05
85.19
85.19
85.33
85.05
85.33
85.33
85.33
85.19
85.05
85.33
85.33
85.05
84.48
83.78
83.78
83.78
83.92
79.25
79.37
79.25
79.25
79.25
79.25
79.13
79.37
79.01
78.65
78.53
77.61
76.81
76.47
75.46
74.59
74.38
75.13
75.45
76.35
76.45
76.35
76.45
76.76
76.96
77.27
76.35
75.75
75.85
75.55
74.28
73.14
71.84
71.03
70.85
71.03
68.49
68.27
65.29
66.89
69.50
72.65
7.5.17
77.55
76.03
82.82
82.82
81.22
83.54
84.76
87.06
88.57
89.82
68.28
74.27
74.70
73.20
76.11
78.77
81.30
83.19
85.02
83.97
70.49
70.76
66.35
67.49
70.67
73.69
75.95
77.98
77.17
,N0NNWNW
00000,
10..00.7
79.83
80.30
80.07
80.66
80.89
81.13
81.25
81.49
81.13
80.77
81.01
81.01
80.77
80.30
79.25
78 67
78.67
79.48
.4.4.4.4-4 .4-4,
1202m-10,WOnw:
,00.
000
-100000000000000.
54.80
53.89
50.04
49.81
51.91
55.59
59.46
63.02
61.59
78.58
78.33
75.37
78.23
81.25
83.58
85.36
87.08
86.41
1
DOMM05-4,
WWW.-WO!F.N.P.
P. U. DMus.
63.12
63.49
63.12
62.22
62.13
62.93
'63.21
63.94
62.93
61.70
61.52
60.56
59.47
58.02
56.26
55.16
54.95
55.23
1Ww
W04.....40•4 ,
RR.
a000V.Ooo
As.
74.25
74.67
74.47
74.15
74.05
74.57
74.77
74.87
74.15
73.55
73.45
72.85
72.28
71.09
69.68
68.85
68.76
69.22
Baa.
000
Ass.
A.
0010
120
Domestic.
OCACATAVIOrMMOMOC.75005M=01,
,0=90C00,-.1.
.?
0WWWWWNWW
120 Domestic by Ratings.
1932
Daily
Averages.
Z000,q4CAQ4pat
riti
United
Kingdom.
U•VbriViC
MOODY'S BOND YIELD AVERAGES.
(Based on Individual Closing Prices.)
AU
120 Domestic try Rat nes.
120
1932
DomesDaily
Baa.
A.
As.
Ass.
tic.
Averages.
8.80
7.00
5.96
5.18
Jan. 22__ 6.74
8.78
6.91
5.95
5.17
21._ 6.70
8.85
6.90
5.96
5.17
20__ 6.72
8.98
6.91
5.96
5.16
19__ 6.75
8.98
6.90
5.96
5.18
18.... 6.76
8.84
6.87
5.96
5.16
6.71
16__
8.78
6.85
6.97
5.16
Ian. 15_ 6.69
8.78
6.82
5.95
5.16
14._ 6.68
8.94
6.91
5.98
5.17
6.75
13._
9.09
6.97
6.01
5.18
12.... 6.81
9.14
6.96
6.02
5.16
11._ 6.82
9.25
6.99
6.10
5.16
9-- 6.88
9.30
7.12
6.17
5.18
Ian. 8.. 6.94
9.57
7.24
6.20
5.22
7.06
7_
9.88
7.38
6.29
5.27
6.... 7.21
7.47 10.09
6.37
5.27
7.30
5._
7.49 10.07
6.39
5.27
4__ 7.31
7.47 10.00
6.32
5.26
2__
7.26
1931.
Weekly.
7.53 10.09
6.40
5.34
7.34
)eo. 31._
7.50 10.27
6.36
5.34
24__ 7.37
8.02 10.87
6.50
5.48
18_ 7.71
7.88 10.71
6.23
5.28
7.52
11__
10.21
7.51
6.00
4_.. 7.23
5.20
9.60
7.18
5.79
5.04
Toy.27._ 6.90
9.05
6.95
5.64
20_ 6.65
4.94
8.59
6.75
5.50
4.87
13._ 6.43
8.71
6.83
5.58
4.96
8__ 6.52
Yr. Ago.
6.41
5.27
4.68
4.40
an.21'31 5.19
120 DOtaelltia
hit Groups.
RR.
44)
ForP. U. Indus. dans.
6.96
6.92
6.96
7.06
7.07
6.98
6.95
6.87
6.98
7.12
7.14
7.25
7.38
7.56
7.79
7.94
7.97
7.93
6.20
6.16
6.18
6.13
6.11
6.09
6.08
6.06
6.09
6.12
6.10
6.10
6.12
6.18
6.25
6.30
6.30
6.23
7.04
7.03
7.03
7.06
7.08
7.05
7.05
7.11
7.19
7.19
7.22
7.28
7.34
7.45
7.58
7.66
7.64
7.63
13.15
13.19
13.25
13.42
13.40
13.18
13.44
13.47
13.78
13.79
13.85
13.78
13.85
14.06
14.49
15.05
15.22
15.68
7.99
8.12
8.72
8.76
8.42
7.88
7.38
6.97
7.13
0.31
6.33
6.60
6.34
6.08
5.89
5.75
5.62
5.67
7.72
7.66
7.82
7.47
7.20
6.93
6.81
8.69
6.77
16.01
16.48
16.18
14.52
13.75
12.28
11.60
11.11
10.75
5.06
5.09
5.43
7.01
New Capital Issues in Great Britain.
Statistics compiled by the Midland Bank, Ltd., of London, showing new capital issues in the United Kingdom,
were made available as follows under date of Jan. 1:
subject to revision,
These compilations of issues of new capital, which are
financial purexclude all borrowings by the British Government for purely
the capitalization
poses, shares issued to vendors, allotments arising from
£88,666,192
IN THE
GEOGRAPHICAL DISTRIBUTION OF NEW CAPITAL ISSUES
UNITED KINGDOM. BY MONTHS.
(Compiled by the Midland Bank Limited)
MOODY'S BOND PRICES.
(Based on Average Yields.)
IL V
Year to
Month of
Dec. 31.
December.
£20,163,000 £253,266,000
26,362,000 314,714,000
24,697,000 362,519,000
5,283,000 253,749,000
15,862,000 236,160,000
2.692,000
88,666,000
Year to
Month of
Dec. 31.
December.
£46.779,000 £237,541,000 1926
8,463,000 384.211,000 1927
19,353,000 215,795,000 1928
7,537.000 235,669,000 1929
1,695,000 203,760.000 1930
26,067,000 223,546,000 1931
24,402,000 219,897,000
1929-January
February
March
April
May
June
July
August
September
October
November
December
Year
1930-January
February
March
April
May
June
July
August
September
October
November
December
Year
Total.
18,046.000 9.280,000 15,730,000 4.362,000 47.418,000
2.621,000 4,243,000 33.048,000
26,184,000
219.000 1.081,000 7.707,000 33,781,000
24,774,000
118,000 2,219,000 3,675,000 34,768.000
28,756,000
27,000 7.373,000 1,433,000 21,131.000
12.298,000
119.000 4,206,000 7,063,000 25,398,000
14.010,000
311,000 5,663,000 2,350,000 22,211,000
13,887,000
3,592,000
939,000
439,000
2,214,000
547,000 2,664.000
658.000
1,459,000
465,000 3,572,000 11,510,000
18,000
7,455,000
30,000 3,119.000 3,523,000 12,945.000
6,273,000
521,000 5,283,000
706.000
10,000
4,046.000
159,402,000 10,132.000 44,280,000 39,935,000 253,749.000
11,337,000
7.965,000
16,948.000
11.890,000
17.816,000
7,703,000
13,108,000
3,454,000
2,409,000
12,763,000
11.516.000
10,447,000
1,247,000 1,656,000 2,685,000
5,940,000 4.679,000 7,571.000
5,716,000 3.720.000
67.000 9,264,000
50,000
7,200,000 8,489,000 4.394,000
875.000
266,000 4,381,000
211.000 3,025.000
88.000
451,000
125,000 2.530,000
508,000
460,000
1,662,000
12,000,000 1,413,000 4,321,000
790.000
75.000 7,529,000
8.000 4,254,000 1,153,000
16,925.000
26,155,000
26,384,000
21.271.000
37,899,000
13.225,000
16,432.000
6,560,000
5,039.000
30,497,000
19,910,000
15,862.000
127,356,000 28.661,000 41,385.000 38,757,000 236,159,000
994,000 3,346,000
150,000
7,843,000
10,000
5,952,000 12,115,000 1,629,000
119.000 3,458,000 2,428,000
7,442,000
304,000
12,000
1,371,000
11,000
50,000
924,000 10.025,000
22,000 5.344.000 3.100,000
4,366,000
8,000
13,000 2,885,000
2,279.000
29,000
5,000
1,632,000
21,000
1,294,000
10,000
2,473,000
50,000
24,000
4,335,000
16,000
2.676.000
1931-JanuarY
February
March
April
May
June
July
August
September
October
November
December
Year
India and Other British Foreign
Ceylon. Countries. Countries.
12,333,000
19.606,000
13,447.000
1,687,000
11.010,000
12,832,000
5,185,000
1,666,000
1,315,000
2,483,000
4,409,000
2,692,000
42,588,000 22,469,000 14,363,000 9,246,000 88,666.000
GROUPS.
NEW CAPITAL ISSUES IN THE UNITED KINGDOM, BY
(Compiled by the Midland Bank Limited)
GovernmentsUnited Kingdom
India and Ceylon
Other British countries
Foreign countries
Total
Municipalities and public boardsUnited Kingdom
India and Ceylon
Other British countries
Foreign countries
Total
RailwaysUnited Kingdom
India and Ceylon
Other British countries
Foreign countries
Total
Banking and insurance
Breweries and distilleries
and power
Electric light
,,. and trust
Financial, lace'........
Gas and water
.
engineering
and
steel
coal,
Iron,
Mines
Oil
Shipping and canals and docks
Tea, coffee and rubber
Telegraphs and telephones
Tramways and omnibuses
Miscellaneous commercial and industrial
Total
•Including motors and aviation.
Year 1930. Year 1931.
£
£
1,485.000
9,100,000 27,770,000 21,640,000
8,931,600
17,658,144 25,521,188
240,000
3,650,000 12,551,100
Year 1929.
£
30,408,144 67,327,288 30,811.600
3,553,500 44,537,417
3,859,926
472.500
2,736,875
7,885.926
47,273,492
10,306,682
10,306,682
1,920,000 19,060,625
5,549,250
9.767,934
810,000
3,115,389
14,259.297 34,377.809
3,925,369
4,504,297
7.835,000
136,500
13.848,675 10,114,989
1,068,150
2,679,767
4,650,519
6,802,454
5,899.347
15,690,962
8.193,765
44,835,614 12,473,055
9,330.409 2.321,006
2.639,853
75,000 2,524,500
5,272,717
5,485,293 3,951,983
14,277,865
4,244,330 8,050.000
32,500 2,170,000
391,000
557,664
1,345,465
2,459,637
143.515
392,967
2.068.074
1,131.802
347,683
92,344,083 29,516,828 14,731,552
53.749,272 236,159,666 88.666,192
ci
JAN. 23 1932.]
FINANCIAL CHRONICLE
575
Indications of Business Activity
THE STATE OF TRADE—COMMERCIAL EPITOME.
Friday Night, Jan. 22 1932.
Unseasonably mild weather, accompanied by widespread
rains, undoubtedly has hurt business, especially retail
business, in this country. Clearance sales are being held
in many parts of the United States, but they are not so
successful, as they might be, if normal winter weather prevailed in all parts of the country. Temperatures in the East
and Central West have been too high. Snow in New England is so scanty that the usual carnivals have had to be
suspended. Collections are still slow. In some lines,
business has improved, but the purchases are for the most
part in small lots. The demand for heavy clothing has been
greatly reduced by the persistence of warm weather. Special
sales to stimulate trade in such goods have been far from
satisfactory. Wholesale orders have fallen below expectations, though in some cases have been a little more encouraging. The steel output has increased slightly, but
the increase compares unfavorably with that in former
years at this time. The railroads and builders are not
buying much. Neither is the automobile industry. The
automobile trade is said to be a trifle more active, owing to
the production of new models, though none has appeared
from the Ford establishment. The production of crude
petroleum has been reduced by persisting in the Sunday
shutdown. Yet gasoline stocks continue to increase. Oil
well drilling seems to be confined to east Texas. There
appears to be little "wildcatting." In the Pacific Northwest
not half the lumber mills are operating, so that production
and shipments are about balanced. In Boston, the outlook
for the shoe industry is said to be better, owing to a condition that seems to be well-nigh universal in the United
States, and which may yet come to the front as one of the
really stimulating factors in American business. That is
the smallness of retail stocks throughout the immense ramifications of American trade. Retailers, in some cases, are
said to be buying a little more freely for the spring trade.
But this is an exception that proves the rule. The great
body of retailers still stick to the policy of buying from
hand-to-mouth. At the same time there is, here and there,
some increase in the trade in dry goods and millinery. Wool
in Boston and Philadelphia has been rather more active
and prices are firm, but most mills are not buying freely.
The London wool sales are going off at firm prices. In many
cities the wholesale trade in men's furnishings is still dull.
Wholesaling and jobbing failures have recently increased
slightly. Here in New York cotton goods of late have been
less active, and though in general steady enough, have in a
few cases, notably in narrow print cloths, been reported
weaker. On the other hand, some Carolina centers of the
textile business report a better trade, as an outstanding
feature of that section.
Wheat has advanced 2 to 3 cents, partly in sympathy at
times, with a higher stock market, and partly from heavy
buying by large Eastern interests predicated apparently
on the expectation of beneficial effects from financial relief
legislation which has just been passed at Washington. At
the same time, export trade in wheat has remained dull,
with increasing shipments from Argentine and Australia
to Europe at prices so low as to deprive this country of the
European market. Corn prices have simply advanced because of the rise in wheat, but the rise has not been so great
as that in wheat for the reason that the cash trade in corn
has been dull. Mild weather over big areas of the county
resulted in a large saving of feed grains. Other grains, such
as oats and rye, have moved with wheat and corn. Provisions have been firmer and lard futures are up 7 to 10
points. Cotton has been, in the main, firm, though the
close is at a net decline of some half a dozen points. The
South continues to sell very sparingly, and,in a general way,
is still fighting the low prices. Many farmers are still holding back their cotton. At the same time, the Far East is
buying more American cotton than it has for a year or more.
Exports are increasing, and naturally the spinners takings
make a better showing. In fact, these two items largely
exceed the figures of a year ago.
Coffee has declined 6 to 12 points, with light trading and
less spot demand. The project to destroy 400,000,000 coffee
trees has not taken definite shape. About the only support
has been moderate buying by Brazil and Europe, more
particularly by Brazil. The coffee market is really a waiting
affair pending more definite and constructive news from
Brazil. Sugar futures have declined 2 to 4 points and spot
Cuban raws are quoted as low as 1.08c. c. Sc f. Cuba has
sent a kind of ultimatum to Java,calling for a clear statement
of its intentions in the matter of production this year and
next by Jan. 30 1932, with an intimation that unless this
information is forthcoming by that date, Cuba will not be
interested in carrying on further negotiations looking to the
regulation of sugar crops. Rubber has declined 25 to 30
points as Malayan exports have increased and trade certainly has not. Hides have declined 20 to 25 points in a dull
market and with producers supposed to be holding large
stocks. Cocoa was down 16 to 18 points and silk 11 points.
Silver has declined 62 to 72 points.
But an outstanding event of the week was undoubtedly
the signing to-day by the President of the $2,000,000,000
Reconstruction Finance Corporation bill. The design, of
course, is to unfreeze frozen corporation assets and increase
credits on a vast scale in all parts of the country. It will
tend to put a stop to bank failures, liquifying assets. And
it is also gratifying to observe that the President of this
powerful organization will be General Charles G. Dawes,
who may be relied upon to blend conservatism with telling
measures of relief in just the right proportion. It is expected to have an effect on trade in general that will be
profoundly beneficial, although it is admittedly a measure
for a period of storm and stress and not one to be recommended for an indefinite period. But if it stimulates trade
by increasing credits, lessening unemployment and augmenting the buying power of the American people it may
prove to be one of the signal events in American history.
Detroit wired:"The employment index of the Detroit Board
of Commerce on Jan. 15 was 67.2%, against 64.0% on Dec.
31 and 76.4% on Jan. 15 1931, according to the Industrial
Division. The latest figure is the fifth consecutive increase
since Oct. 31, when the index reached the low point for
1931 of 41.7.• The 1931 high was May 15, at 84.0. A
marked improvement in the stabilization of employment in
Detroit area in 1931 was shown over the preceding year."
The increase then since Oct. 31 last year is, it seems,
253/%.
On the 16th inst. the stock market ended in most cases at a
fractional decline. In other words, the market on the whole,
acted very well. On the 18th inst. stocks declined. Noteworthy rallies occurred at times, but the technical position
had been weakened to some extent by the recent rather heavy
covering. Some thought the reports of financial strain in
Austria and some smaller countries had a certain effect.
Fluctuations were rather wide in so small a market but the
net declines were not generally very severe. They reached
in many cases 2 to 3 points. United States Steel common
at the close was practically unchanged showing a loss of
some % net as the shorts found it no easy matter to cover;
the premium at one time was as high as Vs to % of a point;
$37.50 to $50 to pay on every 100 shares borrowed plainly
intimidated many a short and caused him to cover. At one
time Steel was nearly 2 points higher than on Saturday as
commission houses and others were unwilling to lend the
stock. Auburn fell 6 points; American Can, 23
4; Case, 13;
Western Union, 1%; New Haven, 3; Union Pacific, 43,and
Allied Chemical, 23'. It was considered no more than a
healthy reaction. Bonds declined 1 to 5 points and industrial
and foreign bonds also fell but U. S. Government issues were
firm. On the other hand, commodities advanced. Wheat
rose 2% to 3 and cotton 10 to 15 points and higher prices
were reached for coffee, sugar and rubber. Some think that
commodities are destined to take the lead in an advance,
stocks simply following.
On the 19th inst. stocks quietly advanced 34 to 2 points,
railroad issues leading the rise in a day of uneventful trading.
The sales were only about 1,100,000 shares. Norfolk &
Western rose 53 points. Taking part in the advance were
Auburn, up 23 points; International Business Machines
1% and Shell Union Oil and Mohawk Carpet and Homestake
Mining each 13/2. Bonds were unusually quiet at some
decline. Late on the 20th inst. stocks suddenly advanced
1 to 3 points, including 1/
4 in U. S. Steel. The total
576
FINANCIAL CHRONICLE
rirou 184.
a
operating schedule for some time to
trading was little more than 1,200,000 shares, but the to justify capacity
res blankets.
plant
manufactu
This
5
come.
to
2
undertone was good. Railway bonds advanced
Press: "The largest Russian
the
United
cabled
London
upward.
moved
also
issues
domestic
other
points, and
of the Liverpool cotton
the
n
in
history
transactio
cotton
Italian,
French,
though
Some of the foreign bonds advanced
with the purchase by the LancRussian and Hungarian declined. As regards stocks, it was market has been completed
Corp. of £500,000 worth of Soviet cotton.
plainly very much of a trading market -awaiting the effect ashire Cotton
scale
large
Soviet invasion of the British cotton market
at
This
legislation
tion
Reconstruc
of the passage of Financial
that Russia is seeking to displace certain
Washington and the settlement of the railroad wage prob- apparently indicates
and South American cotton in the
States
of
United
hopeful
grades
a
take
to
tendency
manifest
a
was
lem. But there
Soviet
mills.
askance.
representatives said completion of
Lancashire
side
short
the
view of the situation and to eye
of the Turkestan-Siberian RR. enabled earlier and quicker
stocks
some
in
advance
an
was
there
inst.
21st
the
On
rise shipments of cotton." This is supposed to refer to a recent
1 to 2 points, though in a sluggish market the average
ap- sale by Russia of 40,000 bales. American sales of cotton to
were
ns
transactio
in 50 stocks was fractional. The
East, on the whole, are notably large.
proximately only 1,240,000 shares in a day lacking striking the Far
r cabled Jan. 19: "Manufacturers in weaving
Mancheste
of
rise
net
a
at
closing
irregular,
was
features. U. S. Steel
with industry of Lancashire decided in a meeting held for the puron the common and a decline of IA on the preferred,
resuming negotiations on the question of more looms
the crystal gazers, of course, hard put to it to foretell the pose of
operative. This invitation has been accepted by
each
for
their
at
dividend
the
of
matter
action of the directors in the
operatives. The outlook for a successful outcome is
meeting on Tuesday, Jan. 26. Some foresee a reduction; the
as favorable."
others are not so sure. New York City bonds and traction regarded
r cabled Jan. 21:"A meeting of manufacturers
Mancheste
the
made
bonds
Railroad
issues were active and higher.
operatives in the cotton weaving section of Lancashire,
best gains. U.S. Government bonds were firm and German and
of the question of more looms to be assigned
issues steady. A Stock Exchange "seat" sold at $150,000, after a discussion adjourned until Monday. At the end of
operative,
each
n
to
acquisitio
the
through
as against $152,000 paid last week
the meeting an official statement was made that there had
of four rights and $132,000 on Jan. 8.
been considerable progress in the negotiations for a new
leading
shares
railroad
the
points
3
to
To-day stocks fell 1
and that on both sides there were strong hopes that
agreement
S.
U.
impending
the decline with no rail wage decision, the
of the dispute would be reached."
settlement
a
certainty
the
and
next
Tuesday
on
meeting
dividend
Steel
cabled to-day: "Although there has been a
r
Mancheste
of
the
Senate
States
United
of the passage to-day by the
in the volume of inquiries coming into the
increase
insteady
Some
$2,000,000,000 falling flat for the moment.
r cotton market for the past week, the amount of
still
Mancheste
Trading
out."
is
news
"good
the
when
sell
variably
turnover is disappointing. From India the demand
kept within very moderate bounds. The stormy and nerve- actual
to be restricted by political troubles. With China,
to
continues
seem
racking markets of the worst days of depression
There is a fair turnover in the trade with
quiet.
is
trade
ns
were
transactio
The
behind.
definitely
left
have been
markets are buying quietly. From South
Colonial
was
Egypt.
attention
little
vely
comparati
some 1,400,000 shares,
better inquiry. The Continent and the
a
is
there
New
of
America
000
paid to the quick sale of the issue of $100,000,
a steady demand. Slow conditions
furnished
trade
nearly
of
home
rate
a
with
sugared
notes
stock
corporate
York City
and the Egyptian yarn sections
American
the
was
both
in
ibed
prevail
oversubscr
largely
was
6% interest. That the issue
.
a
of
Lancashire
little
hardly surprising. Some railroad bonds declined
Chicago wired that mid-western retailers reported a very
while others advanced. United States Government bonds
lines, while the recent firming of
declined and then partly recovered the loss. Foreign bonds active demand for textile
cotton goods prices is expected to discourage the hand-towere irregular.
Detroit reported
Boston wired on the 19th inst.:"The improvement evident mouth buying that has been in progress.
to move winter
difficult
it
finding
been
had
retailers
that
has
extended
lt
wed
in the cotton goods industry for the past
fair and warm weather. St.
continued
to
the
owing
goods
the
market
mostly
is
it
yet
As
t.
departmen
goods
fine
to the
houses complained of a spotty demand
tone rather than the actual level of prices which has firmedl Louis wholesale
s throughout the rural sections lead them
but in certain plain types of fine goods, quotations have been but low inventorie sales
soon. Charlottesville, Va. wired
better
expect
to
larger
distinctly
are
Sales
yard.
a
Mc.
to
from
up
34
marked
ille Woolen Mills of this city
the
Charlottesv
that
18
Jan.
be
shortly
should
season
buying
spring
indicating that the
al dividend of 12% ($6
semi-annu
regular
a
declared
have
farther
gone
in full swing. Fine goods mills have probably
on stock of $50 par, also the usual bonus of 5%
share)
per
was
This
.
operations
curtailing
in
group
other
than any
year's wages to all employees other than the president
necessitated by a virtual collapse of business in the leading of a
company. At Elmira, N. Y., Stearns and Company's
the
of
In
types of plain goods in the last three months of 1931.
has been closed for an indifinite period.
mill
silk
a
as
the
mills
of
operations
period
that
during
some weeks
by 41 chain-store companies, including three
sales
Total
capacity."
whole were down to 30% of
concerns for 1931 according to one report were
Providence, R. I., wired that delays on the part of cotton mail-order
$3,643,963,329 against $3,864,474,367 in 1930, a decline of
goods wholesalers in ordering spring wear requirements during
5.70%. The mail-order companies alone had sales of $599,invenhold
to
desire
their
the late months of 1931 because of
218,187 in 1931 against $698,952,380 in 1930, a decrease of
purchasing
such
of
bulk
the
brought
has
minimum,
tories to a
14.27%.
of
the
close
at
rers
manufactu
and
into the present month
It was colder here early in the week. On the 18th inst.,
in business. Wages
pick-up
marked
a
reported
week
last
temperatures were 40 to 54 and on the 19th inst. 32
the
and
Mass.,
Salem,
Mills,
Pequot
at
of the 2,000 employees
At times it threatened snow. There was a light
41.
to
10%
beginning
reduced
be
will
Danvers Bleachery, Peabody,
plants are now rainfall on the 17th. Over the 19th inst., Chicago had
The
-day.
to
announced
was
Monday, it
C., wired Jan.21 24 to 40; Cincinnati, 26 to 50; Cleveland, 28 to 42; Detroit,
operating four days a week. Greenville, S.
committee of 26 to 36; Kansas City, 36 to 54; Milwaukee,24 to 42; Minnetive
that at a meeting to-day of a representa
was recom- apolis, 6 to 38; Montreal, 16 to 26; Omaha, 28 to 48; Philo,it
agents,
selling
and
executives
print cloth mill
exceed 80 delphia, 36 to 44; Boston, 36 to 38; San Francisco, 44 to 54;
to
not
policy,
mended that a shorter work week
and 50 hours Seattle, 42 to 44; Spokane, 34 to 40; St. Louis, 32 to 52;
hours for double shift for day and night mills
be volun- Winnipeg, 6 to 10. On the 20th inst., the temperatures
daytime,
the
in
y
for mills operating exclusivel
1 and were 34 to 51 here,36 to 40 in Chicago, 44 to 60 at Kansas
.March
start
tarily effected by the print cloth mills to
City, 20 to 30 at St. Paul, and 2 to 20 below at Winnipeg.
"Southern
wired
C.,
N.
Charlotte,
to run for six months.
big carnivals have been postponed in New England
Four
enmost
the
reported
week
cotton manufacturers last
to the mildness of the weather and the lack of snow,
owing
steadily
A
couraging situation since last December.
some in Maine and New Hampshire. The Boston
including
the
and
prices
higher
at
goods
gray
broadening demand for
RR. Co. has cancelled the usual Sunday sports
Maine
&
regulad
year-roun
proposed program for the most systematic
trains for the past three weeks. There is still time for plenty
are
markets
stock
and
cotton
higher
,
production
tion of
of snow in New England and elsewhere. Otherwise the
cited as basic factors." To-day Charlotte advices stated water supply might suffer. To-day, however, Albany
of
week
that Southern cotton manufacturers report another
reported rain and warmer weather after snow and low
broadening demand, sustained sales, better prices and more temperatures on Thursday. Rain elsewhere in Northern
Elkin,
respect.
every
satisfactory market conditions in
New York to-day was washing away the snow.
N. C., wired that the Chatham Manufacturing Co. has
To-day the temperatures here were up to 42 to 52 degrees.
operating
capacity
night
and
.day
resumed a full-time
forecast was for cloudy or rainy and colder weather
The
season.
holiday
the
for
schedule, following the curtailment
-morrow, but cloudy and warmer on Sunday. Overnight
It is also understood that enough orders have been received to
FINANCIAL CHRONICLE
JAN. 23 1932.]
5T7
Boston had 30 to 40; New York, 42 to 48; Chicago, 36 to 52; the corresponding week in 1931 and 289,957 cars under the
Kansas City, 28 to 42; Milwaukee, 34 to 44; Cincinnati, same period two years ago. Details follow:
Miscellaneous freight loading for the week of Jan. 9 totaled 184,989 cars
.52 to 56, and Detroit, 42 to 48.
Geneva Labor Body Holds Up Ford Wage Data-Acts
After Protests from Government.
The following from Geneva, Jan. 15, is from the New
York "Times":
The governing body of the International Labor Organization decided
to-night to stop temporarily further public distribution of the Labor Office's
so-called Ford wage report. This prevents the issuance of the first French
and German editions and the second English edition.
The action was taken after heated debate, started by the German Government's delegates, who complained that the first English edition had
been issued before it had been submitted to the Governments or the governing body. All employers and delegates chorused criticism of the report.
The British Government's delegates suggested that all interested Governments send in their answers to the report's findings and that these receive equal publicity.
Annalist Weekly Index of Wholesale Commodity Prices
at New Low.
The "Annalist weekly Index of Wholesale Commodity
Prices" fell to a new low of 94.0 on' Jan. 19, in the tenth
week of unbroken decline, its level a week previous having
been 94.3 and a year ago 114.5 The "Annalist" further
says:
The week's decline was due chiefly to a decline in livestock and the meats,
although losses in several of the less important commodities also helped
to drive the index lower.
THE ANNALIST WEEKLY INDEX OF WHOLESALE COMMODITY PRICES
(1913=100)
Jan. 19 1932. Jan. 12 1932. Jan. 20 1931.
Farniproducts
Food products
Textile products
Fuels
Metals
Building materials
Chemicals
Miscellaneous
80.2
95.3
80.9
124.3
97.9
108.6
96.6
84.1
79.5
97.4
*80.1
124.3
98.4
108.7
.96.6
84.1
107.8
118.0
105.8
139.3
105.8
130.1
101.0
89.1
All commodities
*Revised.
94.0
94.3
114.5
Wholesale Prices Again Declined During Week Ended
Jan. 16, According to National Fertilizer Ass'n.
The wholesale price index of The National Fertilizer
Association for the week ended Jan. 16 shows a decline of
nine fractional points, which is the largest decline shown in
several weeks. The latest index number is 63.9, a new record
low point. A month ago the index number was 65.0, while
at this time last year it was 78.2. (The index number 100
represents the average for the three years, 1926-1928.).
The report issued by the Association Jan. 18 continues:
an increase of 1,739 cars above the preceding week but 50,141 cars under
the corresponding week in 1931 and 114,550 cars under the same week in
1930.
Loading of merchandise less than carload lot freight totaled 183,469
cars, an increase of 33,961 cars above the preceding week but 18,915 cars
below the corresponding week last year and 44,366 cars under the same week
two years ago.
Grain and grain products loading for the week totaled 27.510 cars, 3.551
cars above the preceding week but 12,010 cars below the corresponding
week last year and 11,996 cars below the same week in 1930. In the
Western districts alone, grain and grain products loading for the week ended
on Jan. 9 totaled 17,444 cars, a decrease of 10.389 ars below the same week
last year.
Forest products loading totaled 16,831 cars, 3,110 cars above the preceding week but 13,144 cars under the same week Ii 1931 and 32,476 cars
below the corresponding week two years ago.
Ore loading amounted to 3,194 cars,an increase of905 cars above the week
before but 1,973 cars under the corresponding week last year and 5,926
cars under the same week in 1930.
Coal loading amounted to 125,927 cars, an increase of 19,472 cars above
the preceding week but 38,939 cars below the corresponding week last year
and 70,829 cars under the same week in 1930.
Coke loading amounted to 6.005 cars. 166 cars above the preceding week
but 2,910 cars below the same week last year and 4,690 cars below the
same week two years ago.
Live stock loading amounted to 24,579 cars, an increase of 6,275 ears
above the preceding week. It was, however, a decrease of 2,592 cars
below the same week last year and 5,124 cars below the same week two years
ago. In the Western districts alone, loading of live stock for the week
ended on Jan. 9 totaled 19,415, a decrease of 1,981 cars compared with the
same week last year.
All districts reported reductions in the total loading of all commodities
compared not only with the same week in 1931, but also with the same week
In 1930.
Loading of revenue freight in 1932 compared with the two previous
years follows:
1932.
1931.
1930.
713,128
572,504
Week ended on Jan.9
862.461
Note.-Owing to the fact there are 53 Saturdays in 1932. the week ended
on Saturday, Jan. 2, has been moved back into 1931, which leaves the
week ended on Saturday, Jan. 9, as the first week to be reported in the
current year. Adjustments have also been made so as to put the corresponding weeks in 1931 and 1930 on a comparable basis.
For foregoing, as noted, cover total loadings by the
railroads of the United States for the week ended Jan. 9.
In the table below we undertake to show also the loadings
for the separate roads and systems. It should be understood, however, that in this case the figures are a week
behind those of the general totals-that is, are for the week
ended Jan. 2. During the latter period a total of 29 roads
showed increases over the corresponding week last year, the
most important of which were the Pero Marquette Ry.;
Lehigh & New England RR., Michigan Central RR., New
York Ontario & Western Ry., Ft. Worth & Denver City Ry.,
St. Louis Southwestern Ry., St. Louis-San Francisco Ry.
and Gulf Coast Lines.
40...1.4000•004-4M010•0100
N000000NWNCO1.00000
Nine of the fourteen groups declined, three advanced and the remain- REVENUE FREIGHT LOADED AND RECEIVED FROM CONNECTIONS
ing two showed no change. The declining groups were fats and oils,
(NUMBER OF CARS)-WEEK ENDED JAN. 2.
foods, grains, feeds and livestock, fertilizer material, mixed fertilizer,
building materials, chemicals and drugs, house furnishings and miscellanTotal Loads
eous commodities. The groups which showed advances were textiles,
Total Revenue
Received from
metals and fuel. The largest declines were shown in the groups of fats
Freight Loaded.
Railroads.
Connections.
and oils, foods, housefurnishings and miscellaneous commodities.
1932.
1931.
1930.
1932.
1931.
The prices for 36 commodities declined during the latest week. Prices
for 22 commodities showed advances. Among the commodities that
Eastern Districtdeclined were burlap, ground bone, butter, cottonseed oil, oleo oil, corn
Group A1,717
2,444
oil, tallow, cheese, milk, sugar, flour, potatoes, apples, raisins, peanuts, Bangor & Aroostook
2,510
201
270
2,799
3,028
3,217
3,896
4,683
corn, wheat, rice, cattle, hogs, rosin, castor oil, paper, tires, hides and Boston & Albany
Boston & Maine
6,666
8,096
9,833
8,045
9,805
calfskin. Listed among the commodities that advanced were cottonseed Central. Vermont
651
584
2,014
733
1,697
meal, cotton. silk, lard, pork, bran, middlings, lambs, sheep, steel, copper, Maine Central
3,616
4,082
2,476
2,455
3,156
N.Y.N.H & Hartford
9,355
10,900
13,177
9,568
10,897
silver, kerosene, houseftumishings and rubber.
434
538
540
802
872
The index number and comparative weight of each of the fourteen Rutland
groups is shown in the table below.
26,564
31,697
34,092
24,031
Total
29,273
WEEKLY WHOLESALE PRICE INDEX-BASED ON 476 COMMODITY
Group BPRICES (1926-1928+100)
689
4,606
2,475
BUffalo Rochester & Pittsburgh
3,211
1,065
6,086
6,685
7,553
4,824
Delaware S. Hudson
5.086
9,113
11,014
4,550
8,428
Delaware Lackawanna & West.
5,005
Per Cent
Latest
13,607
Erie
10,941
10,167
12,802
10,028
Each Group
Week
PreMonth
Year
170
224
114
Lehigh dc Hudson River
1,643
1,803
Groups.
Bears to the
Jan. 16 ceding
Ago.
Ago. it Lehigh & New England
1,209
1,255
1,635
757
927
Total Index.
1932,
Week.
8,773
7,245
Lehigh Valley
4,043
, 6,157
6,316
1,604
2,117
1,908
26
Montour
30
Foods
23.2
68.3
67.9
81.4
26,060
New York Central
20,907
16,886
20,868
26,965
Fuel
16.0
58.8
59.0
73.9
1,486
WesternNew
1,022
Ontario
St
1,640
1,561
York
1,990
Grains, feeds and livestock
12.8
50.9
49.8
76.2
590
903
439
Pittsburgh & Shawmut
14
20
Textiles
10.1
49.1
49.4
65.2
Pitts. Shawmut & Northern
463
390
425
183
297
Miscellaneous commodities- 8.5
66.5
66.7
73.4
31
Ulster
&
34
Delaware
26
43
61
6.7
Automobiles
89.1
89.1
89.2
Building materials
6.6
72.4
73.4
86.9
78,032
Total
63,070
54,497
49.630
63.966
6.2
Metals
73.5
74.8
81.7
furnishings
House
4.0
84.3
84.3
92.7
Group c-.
Fats and oils
3.8
50.6
55.2
63.6
Ann Arbor
471
441
499
815
1,048
Chemicals and drugs
1.0
88.9
88.9
92.6
Chicago Ind Sc Louisville
1,285
1,550
1,811
1,446
1,723
Fertilizer materials
.4
70.3
70.6
84.0
C. C. C.& Si, Louis
7,710
8,387
10,646
8,204
10,454
Mixed fertilizer
.4
79.6
79.7
93.3
Central Indiana
42
53
47
83
76
.3
Agricultural implements
92.7
92.7
95.6
Detroit & Mackinac
171
238
311
76
75
Detroit & Toledo Shore Line.205
156
259
2,095
2,228
All groups combined
100.0
63.9
64.8
65.0
78.2 .1 Detroit, Toledo & Ironton
1,067
1,044
1,635
636
1,164
Grand Trunk Western
2,259 , 2,752
4,067
4,770
5,776
Michigan Central
5,423
5,346
6,974
6,480
7,907
Monongahela
3,537
4.722
6,254
Loading of Railroad Revenue Freight.
158
222
New York Chicago:A St. Louis
3,695 8 3,993
5,403
5,882
8,459
Marquette
4,105 I 3,243
4,838
3,157
3,903
Loading of revenue freight forlthe week ended on Jan. 9 Pere
Pittsburgh & Lake Erie
3,278 8 4,269
6,597
3,886
5.276
& West Virginla
860 * 1,137
1.079
totaled 572,504 cars, the car service division of the American Pittsburgh
528
532
Wabash
4,745 3' 5,171
5,511
5,037
7.371
Railway Association announced on Jan. 19. This was an Wheeling & Lake Erie
2,300 4
'2,450
3.375
1,665
2,234
increase of 69,179 cars above the preceding week, when
Total
41,181
44,982
59,248
44,918
58.448
loadings;were reduced somewhat owing to the New Year's
h-orlay. It:was,thowever, a reduction:of 140,624 cars below
Grand total EssternIDistriet 119.709
137,325
171,372
121.112
164,111
578
FINANCIAL CHRONICLE
Total Loads
Received from
Conneaions.
Total
Pocahontas DistrictChesapeake & Ohio
Norfolk & Western
Norfolk & Portsmouth Belt Line
Virginian
1932.
1931.
1930.
1932.
1931.
19,482
1,022
524
143
5,950
4
317
213
866
51,805
10,359
5,338
47
2,379
24,117
1,205
528
202
6,888
5
426
152
1,154
60,955
13,383
8,774
64
2,883
31,041
2,210
636
210
9,631
555
449
288
1,108
77,850
16,663
11,932
9,419
849
89
2
8,529
63
10
12
2,337
27,068
12.595
1,196
3,698
653.ia
13,173
1.759
129
7
10,492
53
12
16
2,838
32,403
15,151
1,631
1
3,868
98,459
120,736
156,336
65,572
81,533
15,514
11,622
735
1,788
21,020
14,421
717
3,092
26,334
22,063
875
4,527
3,957
2,453
741
261
5,844
3,930
1,016
306
29,659
39,250
53,799
7,412
11,096
7,528
797
320
134
50
1,096
526
279
5,445
16,000
139
9,783
1,131
440
105
56
1,455
495
304
7,533
19,407
153
10,835
1,421
612
148
69
1,790
491
387
8,747
24,600
175
2,995
714
622
156
69
714
555
2,474
2,434
8,387
602
3,966
1,185
796
199
76
942
686
3,157
2,882
10,738
699
32,314
40,862
49,275
19,722
25,326
227
584
692
3,299
271
919
820
344
878
21,138
21,119
105
176
1,969
2,761
622
593
214
739
841
3,770
501
1,056
931
327
1,122
26,371
26,792
134
307
2,426
3,593
865
621
78
533
694
1,734
144
610
986
228
486
6,631
2,687
300
225
759
1,590
226
372
Total
Southern DistrictGroup AAtlantic Coast Line
Clinchfield
Charleston & Western Carolina_
Durham & Southern
Gainesville Midland
Norfolk Southern
Piedmont & Northern
Richmond Fred & PotomacSeaboard Air Line
Southern System
Winston-Salem Southbound.__
Total
Total
43,979
56,517
70,610
18,283
23,815
Grand total Southern Dist-
76,293
97,379
119.885
38,005
49.141
Northeastern DistrictBelt Ry. of Chicago
Chicago & North Western
Chicago Great Western
Chic. Milw.St.Paul & Pacific-Chic. St. Paul Minn & Omaha.
Duluth Missabe de Northern..
Duluth South Shore & Atlantic.
Elgin Joliet & Eastern
Ft.Dodge Des M.& SouthernGreat Northern
Green Bay & Western
Minneapolis & St. Louis
Minn. St. Paul & S. S. Marie
Northern Pacific
Spokane Portland & Seattle
939
11,117
2,217
14,207
2,790
357
294
3,573
148
5,808
417
1,408
3,232
5,956
669
1,065
14,138
2,417
17.625
3,992
572
708
4,756
263
7,751
559
1,946
4,544
7,485
809
1,308
18,782
2,760
22,422
4,918
961
1,240
7,551
339
9,177
622
2,354
6,217
8,870
1,017
894
5,837
1,819
5,295
1,908
95
262
3.639
89
1,311
222
960
1,325
1,401
667
1.149
6,828
2,181
6,114
2,515
66
355
5,975
148
1,471
338
1.185
1,526
2.068
1,071
--
53,132
68,630
88,538
25,724
Central Western DistrictAteh. Top. dr Santa Fe System_
Alton
Bingham & Garfield
Chicago Burlington & Quincy
Chicago Rock Island & Pacific_
Chicago & Eastern Illinois
Colorado & Southern
Denver & Rio Grande Western_
Denver de Salt Lake
Fort Worth & Denver City....
Northwestern Pacific
Peoria & Pekin Union
S. P. (Pacific)
St. Joseph & Grand IslandToledo Peoria & Western
Union Pacific System
Utah
Western Pacific
17,047
2,705
174
13,065
12.101
2,343
919
2,666
474
1,904
291
62
10,483
247
192
10,130
692
899
22,321
3,162
174
18,402
12,844
2.723
1,989
4,276
451
1,141
409
67
14.123
211
197
14,692
1,390
1,065
26,454
3.965
312
21,052
16,335
3,617
2,014
3,769
554
1,492
565
106
17,023
339
333
15,913
1,024
1,292
3,370
1,498
30
4,211
5,516
1,562
728
1,313
7
862
148
63
2,838
143
576
4,643
10
942
76,394
99,637
116,159
28,460
129
153
332
2,006
265
1,488
254
1,856
1.365
260
786
80
4,366
12,515
36
x98
8,855
2,250
559
6,144
4,388
1,469
25
.0.0, .m
.. .
.
0,t.
0-410.-000, 1000 0100l00bo0000.
noNm.mm.-IN.wmnmcwoommw.w
oo
mommwmm-q
.mw coo.w0-4..om
Group BAlabama Tenn & Northern-.
Atlanta Birmingham & CoastAtl.& w.p.-West RR.of Ala_
Central of Georgia
Columbus & Greenville
Florida East Coast
Georgia
Georgia & Florida
Gulf Mobile & Northern
Illinois Central System
Louisville & Nashville
Macon Dublin & Savannah....
Mississippi Central
Mobile & Ohio
Nashville Chattanooga & St• I,New Orleans-Great Northern
Tennessee Central
.. woo
...
.w1010wwl.i.combmw107-Am.
mwwwwwwmo.-4Nwmmoow
,
Nwmoocommwwww.-40-4
Allegheny DistrictBaltimore & Ohio
Bessemer & Lake Erie
Buffalo & Susquehanna
Buffalo Creek de Gauley
Central RR.of New Jersey
Cornwall
Cumberland & Pennsylvania
Ligonier Valley
Long Island
Pennsylvania System
Reading Co
Union (Pittsburgh)
West Virginia Northern
Western Maryland
....,
M
4.0tV05...101001NOTONIN
0...W....00.MOWOOtt
404
NN U.0000WWOW
14,
..
0103.
Total Revenue
_Freight Loaded.
Railroads.
295
355
372
2,516
354
1.771
472
2,324
1,598
231
1,188
108
6,038
19,328
45
134
11,818
2,977
282
8,745
6,255
2,417
43
2,252
490
82
896
28
1,623
843
1,530
995
387
173
442
1,860
6,077
14
95
2,308
1,200
253
2,270
2,827
1,810
39
49.679
51,903
69,666
28,491
Total
Total
x Previous figure.
Farm products as a group decreased 5% from the November level, due
to lower prices for corn, oats, rye, wheat, calves, cows, steers, hogs, lambs,
poultry, dried beans, cotton, eggs, lemons, oranges, and tobacco. Barley,
onicits, potatoes, and hay,on the other hand, averaged higher in December.
Among foods price decreases were reported for butter, fresh and cured
meats, flour, lard, raw and granulated sugar, corn meal, and evaporated
milk, resulting in a net decrease of 4% for the group as a whole. Coffee,
oleomargarine, bananas, and rice averaged higher than in the month before.
Decreases in the average prices for most hides and skins, chrome calf
leather, several types of shoes, and suit cases and bags caused the hides and
leather products group to decline 2 1-3%.
In the group of textile products cotton goods, silk and rayon, and other
textile products declined sharply, while woolen and worsted goods declined
slightly from November to December. The textile group as a whole declined about 2A %.
Advancing prices of anthracite and bituminous coal were offset by declining prices for gas, Pennsylvania crude petroleum, fuel oil, and gasoline,
with the result that the index number for the fuel and lighting group as a
whole was forced down 2%.
Up and down fluctuations in the prices of the items composing the metals
and metal products group, produced little change on the group as a whole,
but with a downward tendency. Iron and steel products, non-ferrous
metals, and other metal products decreased, while agricultural implements
and automobiles showed no change.
Paint materials and other building materials declined in December.
No change was reported for brick, cement, and structural steel, while a
minor increase was reported for lumber. The group as a whole showed a
.decrease of less than 1%.
Minor price recessions during December occurred in drugs and pharmaceuticals and mixed fertilizers, while chemicals advanced slightly and fertilizer materials showed no change. Both furniture and furnishings in the
group of house-furnishing goods continued to decline in the month.
Prices of cattle feed, paper and pulp, crude rubber, automobile tires, and
other miscellaneous articles showed decreases during the month. The group
of miscellaneous commodities as a whole averaged 5% lower than in November.
Raw materials, semi-manufactured articles and finished products all
averaged lower than in the month before. In the large group of nonagricultural commodities, including all articles other than farm products,
and all commodities other than farm products and foods December prices
showed a downward tendency.
Between November and December decreases took place In 240 instances,
increases in 56 instances, while in 254 instances no change occurred.
The index numbers issued by the Bureau follow:
INDEX NUMBERS OF WHOLESALE PRICES BY GROUPS AND SUBGROUPS OF COMMODITIES (1926=100.0).
Commodity Groups and Subgroups.
All commodities
Farm products
Grains
Livestock and poultry
Other farm products
32,990
Foods
Butter, cheese and milk
Meats
Other foods
Hides and leather products
Hides and skins
Leather
Boots and shoes
Other leather products
Textile products
Cotton goods
Silk and rayon
Woolen and worsted goods
Other Textile products
Fuel and lighting materials
Anthracite coal
Bituminous coal
Coke
Gas
Petroleum products
Metals and metal products
Iron and steel
36,951
Nonferrous metals
Agricultural implements
Automobiles
Other metal products
2,847 Building materials
308
Lumber
166
Brick
1,546
Cement
41
Structural steel
1,722
Paint materials
1,050
Other building materials
1,860 Chemicals and drugs
1,028
Chemicals
454
Drugs and pharmaceuticals
289
Fertilizer materials
453
Mixed fertilizers
2,391 Housefurnishing goods
Furniture
7,866
25
Furnishings
100 Mscellaneous
Cattle feed
3.237
Paper and pulp
1,656
Rubber
330
Automobile tires
3.340
Other miscellaneous
2,897
2,656 Raw materials
35 Semi-manufactured articles
Finished products
36,297 Non-agricultural commodities
All commodities less farm products and foods_
41
Southwest DistrictAlton de Southern
Burlington-Rock Island
Fort Smith & Western
Gulf Coast Lines
Houston & Brazos Valley
International-Great Northern
Kansas Oklahoma & Gulf
Kansas City Southern
Louisiana & Arkansas
Litchfield & Madison
Midland Valley
Missouri & North Arkansas
Missouri-Kansas-Texas Lines
Missouri Pacific
Natchez & Southern
Quanah Acme & Pacific
St. Louis-San Francisco
St. Louis Southwestern
San Antonio Uvalde & Gulf....
Southern Pao in Texas & La.._
Texas & Pacific
Terminal RR.Asso. of St. Louis
Weatherford Min. Wells & Nor.
Wholesale Prices Decreased 3% During December Under
November-15% Smaller than December 1930.
The index number of wholesale prices as computed by the
Bureau of Labor Statistics of the United States Department
of Labor shows a decrease for December. This index number, which includes 550 commodities or price series weighted
according to the importance of each article and based on the
average prices for 1926 as 100.0, was 66.3 for December
as compared with 68.3 for November, showing a decrease
of nearly 3%. When compared with December, 1930,
with an index number of 78.4, a decrease of about 15% has
been recorded. The Bureau's survey issued Jan. 20 says
further as follows:
COONOMOMI
,
OO,N01
OMMW.0,4,0:1
0.00,1
.01 MODO.
O.
C., ON
l30
100,0,0,0
06
00
Total
[VoL. 134.
• Data not yet available.
December
1930.
November
1931.
78.4
75.2
64.0
76.3
78.1
81.8
89.489.2
74.5
91.2
69.4
91.5
97.7
104.2
72.4
79.7
51.7
82.3
57.8
70.5
89.6
89.1
83.8
95.4
51.1
90.0
88.0
69.7
94.9
99.5
95.2
84.4
78.1
81.6
90.6
81.7
72.4
97.1
84.8
89.1
65.5
81.4
90.6
91.3
95.5
87.6
66.9
78.2
83.6
18.6
51.3
86.9
74.2
74.3
81.9
79.4
79.0
68.3
58.7
51.3
55.7
63.1
70.9
80.9
67.7
68.5
81.3
49.0
78.8
92.5
101.0
60.7
64.7
43.9
71.9
47.4
65.0
94.2
83.7
81.4
100.1
42.5
86.2
86.0
53.5
92.1
99.4
90.5
74.0
64.2
79.5
74.6
81.7
64.6
88.1
74.7
78.8
60.7
70.1
77.7
83.1
84.5
81.8
59.7
59.8
80.8
9.6
45.7
77.7
62.0
64.4
73.2
71.0
71.8
December
1931.
66.3
55.7
47.0
51.7
61.2
68.1
83.0
63.2
66.0
79.4
48.8
78.6
89.2
99.2
59.2
62.8
42.0
71.5
45.0
63.6
94.8
83.8
81.1
•
39.6
85.8
85.2
52.6
92.1
99.4
90.3
73.3
64.3
79.5
74.6
81.7
62.8
86.3
74.7
79.0
60.4
70.1
77.1
81.0
82.7
79.5
56.9
53.9
79.2
9.5
41.2
75.2
60.2
62.2
71.0
69.3
70.4
JAN.
23
f9n.1
FINANCIAL CHRONICLE
Valuation of Construction Contracts Awarded as Compiled by The F. W. Dodge Corporation Shows
45% Decline for December.
The valuation of construction contracts awarded in the
37 States east of the Rocky Mountains in the month of
December 1931 was $112,583,900 less than in December
1930, the figure for December of this year being $136,851,600, against $249,435,500 in the same month last year,
a decline of 45%, as compared with a decline of 40% in
November of this year in comparison with November of 1930.
The decrease in the valuation for the twelve months ended
Dec. 31 1931, in comparison with the same period last year,
was $1,430,265,100, the totals being $3,092,849,500, against
$4,523,114,600.
Reviewing construction activities in the final quarter of
1931 as well as
in the year itself, F. W. Dodge Corp. finds that
the year's final quarter
produced a contract total of $530,141,700 for all types
of construction in
the 37 States east of the Rockies. Of this amount
December accounted for
26% of the total for the quarter. Contract awards in the
final quarter of
1930 aggregated $839,715.600.
Residential building, during the last quarter of the
year, showed contracts totalling 6141,994,000. This was somewhat
less than 27% of the
total of all construction awards whereas in the final
quarter of 1930 residential contracts amounted to 6256,363,300 or almost
31% of the total of
all construction awards.
Non-residential building represented a somewhat higher percentage
of
the whole during the final quarter of the year just ended
than during 1930.
6207,969,500 was the amount of contracts for this class,
representing 39%
of all construction undertaken, while in the like period
of 1930 non-residential building amounted to 373i% of the whole.
The remaining 34% of the quarter's construction total was
made up by
public works and utilities which totalled to $180,178,200
. This compared
With 32% of the whole in the final quarter of
1930.
It is observed by statisticians of F. W. Dodge Corp. that
in proportion to
total contracts awarded during the final quarter of 1931 residential building
showed a loss in relative importance as contrasted with the
1930 quarter
while non-residential building and public worksshowed larger relative significance. Distribution between the three major classes of construction during
the entire year of 1931 showed residential building contracts as 26% of the
total while non-residential awards were 36% of the whole and public works
and utilities represented 38%.
The New Orleans territory was the only one of the thirteen east of the
Rockies to show a larger 1931 construction total than that registered for
1930. Of the remaining twelve territories, New England, Upstate New
York, the Central Northwest and Texas made the best relative
showings
against 1930. New England's total for the year was $295,019,300
. In
Metropolitan New York new construction contracts made
during the year
amounted to 6725,061,400. The total in Upstate New York
which covers
all that section of the State north of Newburgh
was 6169,718,000. The
Chicago district total was 6345,583.000.
CONSTRUCTION CONTRACTS AWARDED-37 STATES
EAST OF THE
ROCKY MOUNTAINS.
No.
of
New
Floor
Month of DecemberProjects. _Space (Sq.Ft.)
Valuation.
1931-Residential Building
3,507
8,753,000
$38,163,500
Non-residential building
1,487
8,176,400
60,381,300
Public works and utilities
977
280,400
50,306,800
Total construction
5.951
17,209,800
$136,851,600
1930-Residential building
4,340 14,704.900
$70,911,100
Non-residential building
2,042
13,653,000
99,903,300
Public works and utilities
1,009
696,700
78,621,100
Total construction
7,391 29,054,600
2249,435,500
12 Months Ended Dec. 311931-Residential building
Non-residential building
Public works and utilities
Total construction
1930-Residential building
Non-residential building
Public works and utilities
63,834 190,273,600
27,728 169,071,200
18,641
6.495.400
2811,388,700
1,118,617,200
1,162,843.600
110,203 385,840.200 53,092,849,500
74,713 230,039,300 21,101,312,500
39,337 266,034,500 1,770,663.900
21,219 14,308,000 1,651,238,200
579
the highest layoff rate. 15.67. The lowest layoff rate, 1.42, was shown
by the iron and steel industry.
Detailed turnover figures will be shown in the monthly labor review
for February 1932.
LABOR TURNOVER RATES PER 100 ON TEE PAY ROLL,DECEMBER 1931.
Monthly Rates.
Separation Rates.
industry.
Quit.
Discharge
Layoff
Total
Accession
Rate.
Net Turnover Rate.
Nov. Dec. Nov. Dec. Nov. Dec. Nov.I Dec. Nov. Dec. Not. Dec.
All mfg..
Autos -Boots and
shoes...
Briek
Cotton
Foundr's
machine
shops___
Furniture_
Iron & st'l
Men's
clothing.
Sawmills-Ellaught•ng
& meat
packing_
.72 .66
.85 1.11
.17
.27
.16 3.03 2.61 3.921 3.43 3.63 3.29 3.63 3.29
.33 6.36 2.52 7.481 3.96 18.51 13.72 7.48 8.96
.87 1.06
.50 .29
1.19 1.23
.15
.55
.34
.20 4.13 2.43 5.15 3.69 2.62 3.60 2.62 3.60
.41 10.17 15.67 11.22 16.37 6.70 3.33 8.70 3.33
.34 3.67 3.98 5.20 5.53 4.15 2.90 4.15 2.911
.39
.49
.64
.31
.40
.54
.19
.38
.06
.66
.93
.84 • .07
.60 .27
.12 3.82 3.68 4.40 4.11 1.89 1.95 1.8
.33 5.17 5.02 6.04. 5.75 2.91 3.11 2.9
.05 1.80 1.42 2.60 2.01 1.78 .91 1.78
.09 5.38 5.44 6.111 6.37 1.62 3.66 1.62
.26 8.65 10.66 9.85111.52 6.39 4.96 6.39
1.24 1.09
.36
1.05
3.11
.91
3.66
4.913
.42 4.72 6.29 6.321 7.80 8.10 8.26 6.32 7.80
Electric Output in the United States During the Week
Ended Jan. 16 Showed a Falling Off of 6.7% as
Compared with the Same Period in 1931.
The production of electricity by the electric light and
power industry of the United States for the week ended
Saturday, Jan. 16, was 1,602,482,000 kwh., according to
the National Electric Light Association. The Atlintic seaboard shows a decrease of 2.6% from the corresponding week
last year and New England, taken alone, shows a decrease
of 2.8%. The central industrial region, outlined by
Buffalo,
Pittsburgh, Cincinnati, St. Louis and Milwaukee, registers,
as a whole, a decrease of 9.4%, while the Chicago district
alone shows a decrease of 6.4%. The Pacific Coast shows
a decline of 7.4% below last year.
Arranged in tabular form, the output in kilowatt hours
of the light and power companies for recent weeks and by
calendar months since the beginning of the year, according
to the National Electric Light Association, is as follows:
Weeks Ended
1931.
1930.
1929.
1,630,081,000
1,726,800,000
1,722,059,000
1,714,201,000
1,711,123.000
1.723,876,000
1,729,377,000
1,747,353,000
1,741,295,000
1,728,210,000
1,712,727,000
1,721,501,000
1,671,787,000
1,746,934,000
1,748,109,000
1,769.944,000
1,617,212,00
1,674,588,000
1,806,259,000
1,792,131,000
1,777,854,000
1,819,278,000
1,806,403,000
1,798,633,000
1,824,160,000
1,815,749,000
1,798,164,000
1,793,684.000
1,818.169,000
1,718,002,000
1,806,225,000
1,840,863,000
1,860,021,000
1,637,683,000
1928.
.
1931Sept. 5____ 1.635,623,000
Sept. 12____ 1,582,267,000
Sept. 19____ 1,662,660.000
Sept. 26____ 1,660,204,000
Oct. 3......_ 1,645,587,000
Oct. 10____ 1,653,369,000
Oct. 17.___ 1,656,051,000
Oct. 24.... 1,646,531,000
Oct. 31.... 1,651,792,000
Nov. 7.... 1,628,147,000
Nov. 14____ 1,623,151,000
Nov. 21.... 1,655,051,000
Nov. 28____ 1,599,900,000
Dec. 5____ 1,671,466,000
Dec. 12____ 1,671,717,000
Dec. 19____ 1,675,653,000
Dec. 26____ 1,564,652,000
1932Jan. 2.... 1,523,652,00
Jan. 9.... 1,619,265,000
Jan. 16.... 1,602,482,000
MonthsJanuary ---- 7,439,888,000
February... 6,705,564,000
March_
7,381,004,000
April
7,193,691,000
May
7.183,341,000
June
7,057,029,000
July
7,222,869,000
August
7,144,840,000
September
7,042,783,000
October
7,256,279,000
November.. 6,913,615,000
December... y7,240,000,000
1931
Under
1930.
1,484,000,000 114.1%
1,604,000,000 j
1,614,000,000 3.4%
1,623,000.000 3.2%
1,637,000,000 3.8%
1,651,000,000 4.1%
1,665,000,000 4.2%
1.678,000,000 5.8%
1,688,000,000 5.1%
1,697,000,000 5.8%
1,696,000,000 5.2%
1.701,000,000 3.9%
1,619,000,000 4.8%
1,706,000,000 4.3%
1,716,000,000 4.4%
1,710,000,000 5.8%
1,527,000,000 3.3%
1,597,454,00 1,680,289,000 1.542,000,000
1,713,508,000 1,816,307,000 1,733,810,000
1,716,822,000 1,833,500,00 1,738,729,000
4.6%
5.5%
6.7%
8,021,749,000 7,585,334,00 6,637,064,000 7.3%
7,066,788,000 6,850,855,000 6.289,337,000 5.1%
7,580,335,000 7,380,263,00 6,632,542,000 2.6%
Total construction
135,269 510,381,800 $4,523,114,600
7,416,191,000 7,285,3.59,000 6,258,581,000 3.0%
CONTEMPLATED WORK REPORTED-37
7,494,807,000 7,486,635,000 8,552,575,000 4.2%
STATES EAST OF THE
7,239.697,000 7,220,279,00 6,454,379,000 2.5%
ROCKY MOUNTAINS.
7,363,730,000 7,484,727,000 6,570,110,000 1.9%
1931
7,391,196,000 7,773,878.000 6,944,976,000 3.3%
1930-No. of
7,337,108,000 7,523,395,000 6.724,148,000 4.0%
No. of
Month of December-Projects.
7,718,787,000 8.133,485,000 7.360,489,000 6.0%
Valuation. Projects,
Valuation.
Residential building
7,270,112,000 7.681,822,000 7,174,145.000 4.9%
4,089
$52,635,800
5,101
899,002,100
Non-residential building
7,566,601,000 7.871,121,000 7,233,488,000 4.3%
1,882
54,937,200
2,842
142,179,500
Public works and utilities
979
83,093,500
1,652
136,032,900
Total year. y85700000000 89.467.099.000 90.277,153.000 80.829.833,000 4.2%
Total construction
6,930
6190,668,500
I Because of irregularity of Labor Day holiday, change is calculated for the
9,595
$377,264,500
first two weeks of September. y Estimated.
12 Months Ended Dec. 31Note.-The monthly figures shown above are based on reports covering 92% ot
Residential building
70.861 $1,1113,860,600 83,190 81,641,372,713
the electric light and power industry and the weekly figures are based on 70%.
Non-residential building
33,474
1,443,869,600 48,335 2,841.219.6000
Public works and Utilities
22,849
1,816.311.700 28,235 3
,798,423.600
Total construction
Chain Store Sales Continue Below Those of
126.984 34,377,041,900 159,760 $88,281,012,90
0
Bureau of Labor Statistics on Labor Turnover
in
December 1931-Highest Accession Rate Shown in
Automobile Industry-Iron and Steel Showed
Lowest.
The Bureau of Labor Statistics of the United States Department of Labor presents herewith under date of Jan. 18,
'December turnover rates for manufacturing as a whole and
for 10 separate manufacturing industries:
The all manufacturing accession rate for December was
3.29. The
total separation rate was 3.43. Of the 10 industries for which
separate
figures are shown, automobiles had the highest accession rate,
13.72.
The lowest accession rate, .91, occurred in the iron and steel industry.
The highest quit rate, 1.23, was shown by cotton manufacturi
ng and
the lowest, .29, by the brick industry. Slaughtering and meat packing
registered the highest discharge rate. .42. The lowest discharge
rate,
05, occurred in the iron and steel industry. Brick manufacturing had
Preceding Year.
According to a compilation by Merrill, Lynch & Co., of
this city, 41 chain store companies including three mail order
concerns, show total sales for the 12 months of 1931 of
$3,643,963,329, against sales of $3,864,474,367, in the corresponding period of 1930, a decrease of 5.70%. Three mail
order companies alone show sales for the 12 months of 1931
of $599,218,187, against $698,952,380, in the 12 months of
1930, a decrease of 14.27%. Excluding the mail order concerns, 38 companies show sales for 12 months of 1931 of
$3,044,745,142, against sales of $3,165,521,987 in the same
period of 1930, a decrease of 3.81%.
Results for December 1931 as reported by 41 chain store
companies, including three mail order concerns, show total
sales of $375,407,604, against $413,968,469 in December
1930, a decrease of 9.31%. The three mail order concerns
[VoL. 134.
FINANCIAL CHRONICLE
580
alone show sales for December of $57,711,857, against $71,272,220 in December 1930,a decrease of 19.02%. Excluding
the mail order concerns, 38 chain store companies show sales
for December 1931 of $317,695,747, against $342,696,249 in
December 1930, a decrease of 7.29%. A comparative table
follows:
Month of December.
1931.
1930.
Dec.
Calendar Years.
1931.
1930.
27
01. Atl..19 Pacific_ a91,310,661 2100101068 8.7 1,037,7111521.081,1006
289,286,346
F. W. Woolworth_ 39,712,933 42,323,914 6.1 282,666,349
390,382,107
347,209,054
15.1
39,075,133
Sears Roebuck__ 33,167 501
303,539,346
d Safeway Stores__ 23,953,7424.923,978 3.8 284,926,151 150,353,703
145,785,474
S.EL Krege Co- _-_ 22,173,414 23,982,054 7.5 219,361,585
272,319.62'
23.6
Montgomery Ward 21,899.269 28,672,184
192,943,765
21,269,414 23.707,623 10.2 173,695,442 263,567,090
.1. C. Penney
Kreger Groc.& Bak 17,560,983 20,429,975 14.0 244.364,814
71,050,381
75,297,081
12,111,472 11,796,737 e2.6
W.T. Grant
69,041,925 69,283,102
S. H.Kress Co._ _ 11,221,097 12,060.583 7.0 106,868,721
109,339,422
1.4
610,412,8841
First Nat'l Stores_ 610,257,903
43,293,068 43,223,531
McCrory Stores-- 6,879,476 6,782,856 el.4
76,657,861 85,236.533
National Tea Co__ 6.474,523 7,408,306 12.6
30.187,450
31,147,430
3.1
5,489,703
J. J. Newberry-- 5,317,057
54,069,709 51,647,300
4,609,082 4,726,934 2.5
Walgreen
25.291,307
26,067,607
1.6
3,817,6
0
3,758,2
Lerner Stores
24,046,536
21,946,67
McLellan Stores- - 3,748,061 3,968,294 5.5
32,872,279
35,551,02
H.C.Bohack__ _. a3,438,318 a3,650,560 5.8
37.009,934
35,239,902
20.7
4,319,556
3,422,369
Grand Union
17,498,022
19,181,558
2.961,329 3,170,346 6.5
G. C. Murphy_
21.409,587 21,784.712
Intend. Dept.Its_ 2,649,680 3,069,967 13.7
36,250,648
32,647,548
24.9
3,524,903
Nat'l Deltas Hess_ 2,645,087
26,285,125 28,654,300
2,546,433 2,820,219 9.7
Melville Shoe
31,149,208 34,007,497
c2,395,485 c2,694,295 11.0
Daniel Reeves
15.958,787 16,507,157
22.3
3,025,890
2,349,121
Nelener Bros
24,302,723 26.551.467
2,163,410 2,277,368 5.0
Thuds Co
,927 24.118,586
4,325,200
c2,071,830
c1,982,482
Dominion Stores
9,554,003
14,316,42
1,571,098e18,5
1,862,84
Loft, Inc
17,472,674 16,777,867
1,777,397 1,707,203 e4.1
Peoples Drug Efts
21,782,4
18,917,693
12.0
2.003,262
1,762,829
:Ionso1. Retail
15,541,768 15,958.39
1,340,083 1,336,201 (0.3
Waldorf System
9,932,214
10,171,078
1,119,394 1,175,130 4.7
klaltf Co
15,233,843 17,139,478
19.5
1,382,187
1.111,978
Lane Bryant
Western Auto Sup.
12,426,000 13,885,000
971,000 1.056,000 8.0
Co.(Kans. City)
4,724,084
5,471,956
894,142e17.9
818,094
Kline Bros
7,867,318 6,041,777
565,874e17.8
666.671
31ckford's
2,268,079
2,641,597
e9.4
415,329
454,459
f. H.Fishman
5,116,600 5,416,216
455,20 0.6
452,267
Winn & Lovett...
6,316.0 1
5.254,53
544,590 18.9
441,483
a:change Buffet
4,662,918
4,527,706
448,487 6.1
420,848
laily Frocks
1,963,071
1,987.372
308,913 25.6
229,699
ittybee Stores-
Dec.
4.0
2.2
11.1
6.1
3.0
19.4
9.9
7.2
e5.9
0.3
2.2
e0.2
10.0
e3.2
e4.7
c3.1
8.7
.8.1
4.7
e9.6
1.7
9.9
8.2
8.4
3.3
8.4
e4.4
e49.8
e4.1
13.1
2.6
e2.4
11.1
4 articles showed no change in the month: Evaporated milk, flour, pork
and beans, and tea.
Changes In Retail Prices Of Food By Cities.
During the month from November 15 1931, to December 15 1931, 48
of the 51 cities from which prices were received showed decreases in the
average cost of food as follows: Buffalo, 9%; Manchester,6%; Boston, and
Portland (Me.), 5%; Milwaukee, Newark, New York, and Providence,
4%; Atlanta. Birmingham, Cincinnati, Jacksonville, Norfolk. Omaha,
Pittsburgh, San Francisco, and Scranton, 3%; Baltimore, Chicago, Cleveland, Denver, Fall River, Memphis, Minneapolis, Mobile, Peoria, Philadelphia, St. Louis, Salt Lake City, Springfield (Ill.), and Washington,
2%; Bridgeport, Butte, Charleston (S. C.), Columbus, Detroit, Indianapolis, Kansas City, Little Rock, Los Angeles, Louisville, New Haven,
New Orleans, Richmond, Rochester, St. Paul, Savannah and Seattle, 1%.
Two cities, Dallas and Houston, showed increases of 2%. In Portalnd
(Ore.) there was no change in the month.
For the year period December 15 1930, to December 15 1931, all of the
51 cities showed decreases: Springfield (Ill.), 23%; Birmingham, 22%;
Buffalo. Jacksonville, and Little Rock, 21%; Cleveland. Norfolk, Omaha
and Peoria, 20%; Atlanta, Dallas, Detroit, Memphis, Mobile, and Savannah, 19%; Boston, Cincinnatti, Columbus. Houston, Louisville, Manchester, Minneapolis, New Orleans, Pittsburgh, and St. Louis, 18%; Charleston (S. O.),Indianapolis, Milwaukee, Richmond,St.Paul,and Washington,
17%; Baltimore, Fall River, Kansas City, New Haven, New York, San
Francisco, and Scranton, 16%; Chicago, Newark, Portland (Me.), Providence and Rochester, 15%; Salt Lake City, 14%; Bridgeport, Denver, Los
Angeles, and Philadelphia, 13%; Seattle, 11%; and Butte and Portland
(Oreg.). 10%.
United States Department of Labor's Survey of Building Operations in United States-Decrease of
14.9% in Estimated Cost of Building During
December as Compared with November.
The Bureau of Labor Statistics of the United States Department of Labor has received building permit reports
from
348 identical cities having a population of 25,000 or
10.5
e15.8 over for the months of November 1931 and December 1931.
e30.2
el6.4 According to these reports there was a decrease of 28.5%
5.5
of 14.9% in the estimated
16.8 in the number and a decrease
2.9 expenditures for total building operations, comparing the
e0.2
permits issued in December with those issued in November.
Pot.41 Chain sto
New residential buildings decreased 31.3% in number and
5.70
913,864,474367
9.31
3,643,96332
& mall order cos'375,407,6 413,988,469
698,952,380 14.27
599,218,1871
19.02
71,272,221
57,711.85
cos-order
Onall
37.9% in estimated cost. New non-residential buildings
3.8 decreased 35.0% in number but increased 0.7 of 1% in
38 chain store cos317.695.74 342.696.249 7.29 3.044.74514213.165.521987
Dec. 26. estimated cost. Additions, alterations and repairs dea Five weeks to Jan. 2. b Five weeks to Dec. 26. c Four weeks to
d Includes MacMarr Stores, Inc. e Increase.
creased 24.8% in number and 18.8% in estimated cost.
During December 3,508 family dwellings were provided.
Reports
ure
This is a decrease of 38.4% as compared with November.
Agricult
of
United States Department
The Bureau further reports in its survey issued Jan. 21
Farm Employment Lowest in 13 Years.
follows:
"Farm employment is the lowest in 13 years of statistical asVarious agencies of the United States Government awarded 101 buildliag
the
of
s,
Economic
ral
of
Agricultu
Bureau
the
by
record
contracts during December at a total cost of $11,901,912.
Comparing permits issued in 297 identical cities in December 1930
United States Department of Agriculture," says the Departnumber of new
and December 1931, there was a decrease of 42.5% in the
of
ment on Jan. 18.
residential buildings and a decrease of 68.6% in the estimated cost
normal,"
of
60.5%
22.2%
only
is
decreased
hands
buildings
farm
for
tial
demand
"The
this Class of building. New non-residen
and 41.7% in estimated cost. The number of additions, alterathe Department continues, "but the supply is 120.9% of in numberrepairs
decreased 9.1%, while their cost decreased 45.7%. Total
and
The
normal, making the ratio of supply to demand 199.8% tions
building operations decreased 18.5% in number and 51.7% In cost.
the
Departfrom
quote
further
We
index."
number of family dwelling units provided decreased 64.7%.
in the Bureau's
Permits were Issued during December 1931 for the following important
ment's survey as follows:
for a building for the State Departof farm
Numerous instances, particularly in the North Central States,
been reported to the
laborers working for food and lodging alone, have
g
Eliminatin
wages.
and
labor
Bureau in its January survey of the farm
without any cash pay, average wage
those reports of farm hands working
average in the Bureau's index,
rates on Jan. 1 were 98% of the 1910-14
the average decline from October to
a drop of 12% since Oct. 1, whereas
January the last eight years was 9%.
in the South Central and South
The Bureau finds lowest day wages
with board, and 96 cents to $1.02
Atlantic States, at 72 to 74 cents a day
day wages are being paid in the North
a day without board. Highest
rate is $1.70 with board and $2.37
average
the
where
States
Atlantic
rates range from $14.43 with board in the
without board. Monthly wage
with board in the Far Western States;
South Atlantic States, to $32.39
the South Stlantic States to $51.45 in
and without board, from $21.80 in
States.
the Far Western
Between November
Decrease of 2% in Retail Food Prices
e in Year.
Decreas
2-3%
15 and December 15-16
States, as
United
the
of
cities
Retail food prices in 51
s of the United
reported to the Bureau of Labor Statistic
average decrease
States Department of Labor, showed an
d with Nov. 15
of about 2% on Dec. 15 1931, when compare
since Dec.
2-3%
16
about
of
decrease
average
1931, and an
with aver,
numbers
index
15 1930. The bureau's weighted
1930;
age prices in 1913 as 100.0, were 137.2 for Dec. 15
121.3
and
1931;
15
Dec.
for
114.3
116.7 for Nov. 15 1931;
for the year, 1931. The Bureau further reports under date
of Jan. 16:
Geographic
Division.
New England
Middle Atlantic+
East North Central
West North Central_
South Atlantic
South Central
Mountain and Pacifico
52
68
93
25
39
35
36
Estimated
Coat.
Nor. 1931.
COOS
(Jeograll860
Ditili011.
1C,e3t0
Cit0C5 ,
.00ClaCIMMCI
348
Dec. 1931.
445
1,083
302
309
281
307
801
$23,802,590 214,775,467
-27.9
5,692
8,508
-38.4
New Non-Residential
Buildings.
Estimated
Coil.
Dec. 1931,
Total Construction
(including Alterations
and Repairs).
Estimated Coat.
Nov. 1931,
Dec. 1931.
1
Total
PA.nem! of nhArurri _
Nov. 1031.
469
2,392
507
397
498
439
990
Nov. 1931,
New England
Middle Atlantio
East North Central
West North Central_
South Atlantic
South Central
Mountain and P801110
Dec. 1031.
Families Provided for is
New Dwellings,
82,020.115
4,994,766
1,529.677
1,262,685
1.164,123
1,052,562
2,751,539
92,455,350
10,562.657
2.276,567
1,489.827
1,845.462
1,698,717
3.474,010
348
TOW
Per Cent of change--
1
New Residential Buildings.
Cities.
1
December 15 1931, 32
During the month from November 15 1931. to
decreased as follows: Pork
articles on which monthly prices were secured
6%; sliced ham, and
chops, 13%; oranges, 11%; lard, 8%; sliced bacon,roast, fresh milk, and
leg of lamb, 5%; sirloin steak, round steak, chuck
cheese, vegetable
butter,
hens,
strictly fresh eggs, 3%;rib roast, plate beef,
corn, sugar, and prunes,
lard substitute, cornmeal, navy beans, canned
cornflakes, macaroni, rice,
2%; canned red salmon, oleomargarine, bread,
wheat cereal, leas than
canned peas, canned tomatoes, and coffee, 1%;and
cabbage, 13%; pota5-10tha of 1%. Six articles Increased: Onions, 18%;
The following
toes, 6%; bananas, 2%; and rolled oats, and raisins, 1%.
building projects: In Boston, Maas.,
ment of Publlc Works to cost over $1,000,000; in the Borough of Brooklyn
for a new tuberculosis hospital to cost nearly $5,000,000; in Chicago for
a nurse's home to cost $2,000,000; in Minneapolis for a school building
to cost $755.000; in Nashville for two amusement buildings to cost over
were
8600,000 and for an office building to cost $750.000. Contracts
awarded by the Supervising Architect, Treasury Department, for a post
office and Federal court house in Pittsburgh to cost nearly $5,000,000;
for a hospital for defective delinquents in Springfield, Mo., to cost $1.nearly
700,000, and for a Federal court house in Portland, Ore., to cost
$1,200,000.
AS
ESTIMATED COST OF NEW BUILDINGS IN 348 IDENTICAL CITIES,
SHOWN BY PERMITS ISSUED IN NOVEMBER AND DECEMBER 1931:
.
BY GEOGRAPHIC DIVISIONS
83.098.530
10.026,591
4,807,024
2,138.424
11,700,188
3,146,852
3,163,396
22,514,570
17,795.496
5,228,548
3,105.996
729.360
4.457.316
4,511,577
86,639.862
25,823,007
8.868,820
4,167,264
15,155,803
5,722,451
7,836,125
$5.368,049
26,889.219
7.987.168
5,325,437
2,999,116
6,014,435
8.636.451
838.081,005 $38,342,803 $74,213,832 $03,129.875
--14.9
.k07
FINANCIAL CHRONICLE
JAN. 23 1932.]
Some Improvements Reported in Agricultural and Business Conditions in Minneapolis Federal Reserve
District During Decembet.
"In December," says the Federal Reserve Bank of Minneapolis in reporting agricultural and business conditions in
its district, "some of the important Ninth District (Minneapolis) records showed improvement over November. The
bank debits index, adjusted for seasonal variation, increased
from 60 to 67. The adjusted country check clearings index
increased from 63 to 65. Carloadings of miscellaneous and
1. 0.1. freight during the four weeks ending Dec. 26 declined
less as compared with the 1930 period than the percentage
decline in November from last year's volume." The review
issued by the Bank Jan. 16, adds:
In spite of these more favorable indications, the general volume of
business in December was smaller than In December last year. The reduction as compared with December 1930 in bank debits was 21%. in country
check clearings 25%, in freight carloadings, including 1 C. I. freight (four
weeks), 20%. Other declines occurred in electric power consumption.
postal receipts, building permits and contracts, flour and linseed products
shipments, grain marketings, receipts of cattle, calves and sheep and
department store sales. Increases occurred in receipts of hogs and in
warranty deeds recorded in Hennepin and Ramsey Counties of Minnesota.
Employment indexes remained at the higher levels established in November,
but were less favorable than a year ago.
The estimated December cash income of farmers from seven important
Items was 36% smaller than in December last year. The shrinkage in farm
Income was largely caused by lower prices for hogs and greatly reduced
marketings of cash grains. Prices of durum wheat, barley and rye were
higher in December than a year ago, and the price of butter in
December
was equal to last year's December price. Prices of all other important
northwestern farm products were lower than a year ago.
ESTIMATED VALUE OF IMPORTANT FARM PRODUCTS MARKETED
IN THE NINTH FEDERAL RESERVE DISTRICT.
Bread wheat
Durum wheat
Rye
Flax
Potatoes
Dairy products
Hogs
Total of seven Items
December
1931.
December
1930.
% Dec. 1931
of Dec. 1930.
$1,700,000
317,000
117,000
469,000
431,000
9,999,000
7,125,000
$5,075,000
1,761,000
272,000
1,127,000
608,000
10,582,000
12,191,000
33
18
43
42
71
94
68
$20.158.000
$31,614,000
64
Employment in United States Increased Slightly During
December as Compared with November-Slight Upward Movement in Payrolls.
The Bureau of Labor Statistics of the United States Department of Labor reports, under date of Jan. 19, the
changes in employment and payroll totals in December 1931,
as compared with November, based on returns made by
49,841 establishment in 15 major industrial groups, having
in December 4,572,588 employees, whose combined earnings
in one week were $101,655,164, as follows:
581
of the country causing a pronouhced decrease in number of workers in this
Industry during the December pay period reported. The stove, brick,
saw mill, shirt and collar, cement and steam fitting industries also reported
comparatively large decreases, to some extent seasonal, while smaller losses
In number of employees were shown in the carriage and wagon, pottery,
furniture, men's clothing, rubber boots and shoes, pianos, chemicals and
carpet industries. The decreases in the remaining 24 industries were less
than 3%.
The East and West North Central geographic divisions reported both
Increased employment and payroll totals, and the New England division
reported a small gain in payroll totals coupled with a decline in employment.
The remaining six divisions reported decreases in both items over the month
Interval.
In December 1931, 12.119 operating establishments in 64 manufacturing
industries reported an average of 87% full-time operation, this percentage
remaining unchanged from November to December.
INDEX NUMBERS OF EMPLOYMENT AND PAYROLL TOTALS IN
MANUFACTURING INDUSTRIES.
(Monthly Average 192100)•
Employment.
Payroll Totals.
Manufacturing Industries.
Nov.
1931.
Dec.
1931.
Dec.
1930.
75.1
65.4
65.3
67.4
51.0
50.9
Food and kindred products
92.1
Slaughtering and meat packing. 96.1
Confectionery
90.6
Ice cream
75.3
Flour
92.1
Baking
93.3
Sugar refining, cane
79.8
Textiles and their products
77.1
Cotton goods
74.7
83.6
Hosiery and knit goods
Silk goods
82.5
'Woolen and worsted goods
89.7
Carpets and rugs
65.1
Dyeing and finishing textiles._ 93.1
Clothing, men's
68.9
Shirts and collars
72.0
Clothing,women's
88.8
Millinery and lace goods
74.0
Iron and steel and their products_ 74.0
Iron and steel
75.6
Cast-iron pipe
55.4
Structural Ironwork
83.6
Foundry & machine-shop prods 74.8
Hardware
71.8
Machine tools
78.3
Steam fittings
61.7
Stoves
61.9
Lumber and Its products
58.2
Lumber, sawmills
55.3
Lumber. millwork
57.2
Furniture
86.2
Leather and Its products
73.8
Leather
76.4
Boots and shoes
73.1
Paper and printing
95.7
Paper and pulp
84.9
Paper boxes
87.7
Printing, book and Job
98.0
Printing, newspa're & per'eali. 108.4
Chemicals and allied products.... 85.9
Chemicals
92.2
Fertilizers
74.9
Petroleum refining
82.3
Stone, clay, and glass products
84.3
Cement
62.7
Brick, tile, and terra cotta.... 53.8
Potters'
80.5
Glass
72.1
Metal products, other than Iron
and steel
72.4
Stamped and enameled ware
72.0
Brass, bronze and copper prods 72.6
Tobacco products
86.9
Chewing and smoking tobacco
and snuff
87.7
Cigars and cigarettes
66.8
Vehicles for land transportation
86.8
Automobiles
70.6
Carriages and wagons
39.5
Car building and repairing,
electric railroad
80.5
Car building and repairing.
steam railroad
62.6
Miscellaneous industries
83.0
Agricultural Implements
72.9
Electrical machinery, apparatus
and supplies
89.2
Pianos and organs
46.8
Rubber boots and shoes
76.0
Automobile tires & Inner tubes 67.1
Shipbuilding
105.0
87.8
90.4
90.3
70.1
87.9
88.0
82.2
73.7
73.5
85.8
70.7
67.4
65.1
82.5
69.7
71.8
73.5
88.1
59.0
62.5
49.7
83.7
57.1
61.2
50.2
51.4
60.0
48.1
43.8
47.7
59.4
68.9
71.6
68.2
88.6
78.4
83.9
85.7
104.9
72.0
83.3
46.8
67.4
54.5
52.7
41.5
72.4
65.3
87.7
93.3
89.3
68.7
85.7
86.8
80.0
72.8
73.8
84.5
70.9
60.0
63.1
83.0
66.8
65.3
73.5
67.5
58.8
63.0
49.1
62.2
57.4
60.4
50.1
48.0
53.5
44.7
39.7
46.5
56.9
72.4
69.9
73.0
88.4
77.6
81.5
86.7
105.1
71.0
80.7
48.5
67.3
51.7
49.1
37.3
69.0
65.4
92.4
98.6
90.3
74.2
91.5
92.4
79.2
68.1
69.1
76.8
77.8
64.2
52.8
88.1
49.9
59.0
74.4
61.1
61.4
61.8
50.8
75.5
02.2
58.4
62.3
52.7
47.6
49.6
47.4
50.4
53.6
56.3
71.7
51.9
97.0
79.3
87.4
99.8
112.4
85.2
89.7
70.2
83.8
55.3
54.0
42.8
70.3
68.3
81.1
82.9
79.1
66.1
83.3
82.7
74.3
56.3
58.1
70.3
57.2
55.9
48.1
70.4
43.0
50.3
584
51.9
37.6
36.3
36.2
46.1
37.7
40.8
38.6
34.3
41.0
33.7
29.9
34.7
40.8
45.6
60.1
41.4
84.2
63.6
78.4
80.6
104.4
67.7
78.8
38.3
64.2
40.3
40.8
25.7
54.2
53.7
80.5
87.1
79.0
63.8
75.3
80.4
70.6
55.8
56.8
68.8
57.9
55.2
44.9
71,5
42.8
42.9
55.4
49.9
38.0
37.1
37.0
44.5
38.9
40.1
37.2
31.5
33.8
30.6
25.4
34.3
38.6
48.6
57.9
46.0
84.4
61.5
74.6
83.2
105.1
66.7
74.2
41.2
64.1
36.9
34.9
21.8
50.7
52.6
Dec.
1930.
General Index
Nov.•
1931
Dec.
1931.
64.0
64.3
63.6
47.5
46.8
66.9
50.9
64.6
66.2
49.8
62.6
64.2
62.3
The combined totals of these 15 industrial groups show an increase of
48.1
45.6
82.2
73.7
81.4
62.5
68.4
0.7% in employment and an increase of 0.3% in payroll totals.
Increased employment was shown in 3 of the 15 industrial
82.3
88.8
87.4
74.6
79.2
groups included In this monthly employment survey, the retail trade group
82.2
71.8
80.6
67.6
60.5
reporting
the usual large seasonal increase in employment reflecting
51.0
58.8
55.5
45.7
43.8
the Christmas
61.6
51.1
41.2
54.0
46.7
trade, while small increases in employment were reported in
the crude
33.1
40.1
31.2
30.6
27.7
petroleum and the bituminous coal mining industries. Increased
payroll
totals were reported in the retail trade, crude petroleum and
71.1
71.7
68.2
68.6
79.8
telephone and
telegraph groups, the last named group reporting a small decline
in employ43.2
44.8
62.4
49.0
49.6
ment coupled with increased earnings.
69.3
76.0
69.0
56.0
55.7
In the remaining 11 groups in which both decreased
34.2
24.8
59.0
36.8
26.7
employment and
earnings were reported, decreases in employment of 1% or less
were shown
73.3
60.5
61.7
83.6
72.7
In manufacturing, wholesale trade and laundries, while
slightly larger
30.9
21.7
21.7
39.5
29.8
declines were reported in the power-light-water, electric railroad
operation,
53.0
54.9
72.4
65.2
89.8
hotel and metalliferous mining groups. The anthracite mining
46.1
43.5
55.2
64.9
65.1
and
dyeing
and cleaning groups reported decreases of 4.4 and
83.3
80.0
03.9 109.3
93.3
5.8%, respectively, in
employment, and the quarrying and non-metallic mining and
the canning
and preserving groups reported pronounced declines over the month
interval
due to the seasonal closing of establishments in these
Country's Foreign Trade in December-Imports and
two groups.
Exports.
Manufacturing Industries.
Employment and earnings lit manufacturing industries
remained pracStatistics
The
of the Department of Commerce
Bureau
of
tically unchanged from November to December 1931, both
employment at Washington on Jan. 16 issued its statement on the foreign
and earnings showing a decrease of only two-tenths of 1% over the
month
Interval.
trade of the United States for December and the 12 months
Per capita earnings in manufacturing industries in December
showed ended with December. The value of merchandise exported
no change over the month interval.
in December 1931 was estimated at $184,000,000, as comThese changes in December 1931 are based upon returns made by
13,916
establishments in 54 of the principal manufacturing industries
of the pared with $274,856,000 in December 1930. The imports
United States, having in December 2,521,161 employees whose combined
of merchandise are provisionally computed at $153,000,000
earnings in one week were 852,296,003.
The leather and vehicles groups of industries reported increases in both in December the present year, as against $208,636,000 in
employment and payroll totals in December, as compared with November, December the previous year, leaving a favorable balance in
and three additional groups, iron and steel, paper and printing, and the the
merchandise movement for the month of December 1931
miscellaneous groups, reported increased earnings over the month interval
coupled with slight decreases in employment. The remaining seven groups of approximately $31,000,000. Last year in December there
reported decreases in both items, the largest decreases Occurring in the was a favorable trade balance on the merchandise movement
tobacco, stone-clay-glass, and lumber groups.
of $66,220,000. Imports for the 12 months of 1931 have
Increased employment was shown in 15 of the 54 separate industries
upon which the bureau's indexes of employment and earnings are based, been $2,090,107,000, as against $3,060,908,000 for the
and increased payroll totals were reported in 17 industries. The most corresponding 12 months of 1930. The merchandise exports
pronounced increase in employment from November to December was
for the 12 months of 1931 have been $2,424,183,000, against
shown in the automobile industry, while substantial gains in employment
were also shown in the agricultural implement, boot and shoes, fertilizer $3,843,181,000, giving a favorable trade balance of $334,and slaughtering industries. The iron and steel, foundry and machine shop 076,000 in 1931, against a favorable trade balance of $782,products, and cotton goods industries reported small increases in employ- ;
273,000 in 1930.
ment and earnings in December as compared with November.
Gold imports totaled $89,509,000 in December, against
The greatest decline in employment over the month interval was re- I
pOrted in the cigar and cigarette industry, labor disturbances In one section $32,778,000 in the corresponding month of the
previous
FINANCIAL CHRONICLE
582
year, and for the 12 months were $612,119,000, as against
$396,054,000. Gold exports in December were $32,651,000,
against $36,000,000 in December 1930. For the 12 months
in 1931 the exports of the metal foot up $466,794,000, against
$115,967,000 in the 12 months of 1930. Silver imports for
the 12 months of 1931 have been $28,664,000, as against
$42,761,000 in 1930, and silver exports $26,485,000, as
against $54,157,000. The following is the complete official
report:
[Vor.. 134.
building projects authorized in December 1931, was 28.0%
below that for December 1930. The total estimated valuation of $4,599,987 for December 1931, as the lowest for
any December since 1921, the earliest year for which figures
are available." Mr. Myers further states as follows under
date of Jan. 16:
NC.V.30*.I.W.30
i4oido6ori
vi4e.icic,
oon,-.connn.c-cm.e5
000.30t-nONQ
440
.0,4[•.=0 Ft.7.
All three geographical divisions-Chicago, suburban cities, and cities
outside the metropolitan area-showed increases in valuation between
increase, 158.2%,
TOTAL VALUES OF EXPORTS AND IMPORTS OF THE UNITED STATES November 1931 and December 1931. The largest rate of
occurred in the suburban cities. The increase for Chicago was 142.1%, and
(Preliminary Figures for 1931 Corrected to 1932.)
for the reporting cities outside the metropolitan area 68.1%. The valuation
MERCHANDISE.
for December 1931, compared with December 1930, showed a decline of
9.5% for reporting cities outside the metropolitan area, and 51.1% for the
12 Mos. End. December
December.
Increase(+) reporting suburban cities. Chicago reported an increase of 6.1% as com1930.
Decrease(-) pared with December a Year ago.
1931.
1931.
1930.
The gain over November in valuation for the 45 reporting cities was due to
1,000
1,000
1,000
1,000
1.000
increases in both new residential and new non-residential building. The
Dollars.
Dollars.
Dollars.
Dollars. Dollars.
184,000 274.858 2,424,183 3,843,181 -1,418,998 estimated expenditure for residential building increased in December tO
Exports
-970,801 $2,527,815 from $644,135 in November, or 292.4%. Non-residential build153,000 208,636 2,090,107 3,060,908
Imports
ing increased from $711,111 in November to $1,712,260 in December. a
782,273
334.076
Excess of exports.-- 31,000
66.220
gain of 140.8%. During the same period, additions, alterations, repairs and
MONTHS.
BY
MERCHANDISE,
EXPORTS AND IMPORTS OF
installations declined 51.3%, from $738,411 in November to $359,912 in
December.
1926.
1927.
1928.
1929.
1930.
1931.
December increases in valuation over November in Chicago were recorded
in
both residential and non-residential classifications. Residential building
1,000
1.000
1,000
1,000
1,000
1.000
Dollars. Dollars. Dollars. Dollars. Dollars. Dollars. increased to $2,090,000,or 1,014.4%, due solely to the proposed erection of
Exports419,402
396.836
410,778
488,023
410,849
249,598
a nurses' home, which was estimated to cost $2,000,000. Chicago nonJanuary
224,346 348,952 441,751 371,448 372,438 352,905 residential valuation increased from $405,715 in November to $420,205 in
February
235,899 369,549 489,851 420,617 408,973 374.406
March
215.077 331,732 425,264 363,928 415.374 387,974 December or 3.6%. This total includes an authorization for a $220000
April
203,970 320.034 385,013 422,557 393,140 356.699 auditorium and one church estimated to cost $100,000. In contrast, the
May
187,077 294,701 393,186 388,661 356,968 338,033 December valuation of addttions, alterations, repairs and Installations
June
180,725 266,761 402,861 378,984 341.909 368,317
July
164,808 297.765 380,564 379,006 374,751 384.449 declined 51.3% from November.
August
In the 21 reporting suburban cities non-residential building valuation in180,228 312,207 437,163 421,607 425,267 448,071
September
204,000 326,896 528,514 550,014 488,675 455,301 creased sharply from $51,632 in November to $436,160 in December-an
October
193,555 288,978 442,254 544,912 460,940 4E0,300 increase of 744.7%. This increase was due to a permit for a $400.000 office
November
184,000 274.856 426,551 475,845 407,641 465.369
December
and store building in Oak Park. During this same period residential val3,843,181 5,240,995 5,128,356 4,865,375 4,808,660 uation in the suburban cities showed a more moderate increase of 36.0%.
2,424,183
Dec-end.
months
12
while additions, alterations, repairs and installations declined 11.6%. For
Importsarea the non-residential
310,968 368,897 337,916 356,841 416,752 the 23 reporting cities outside the metropolitan
January
387,306
310,877
351,035
369,442
281,707
valuation reported for December was 8855,895 compared to $253,764 in
February
300,460 383,818 380.437 378,331 442.899 November, a gain of 237.3%. The authorization of two non-residential
March
307,824 410,666 345,314 375,733 397,912
April
estimated to cost $455,540, and an
284,683 400,149 353,981 346,501 320,919 buildings in Peoria, one a school
May
250,343 353,403 317,249 354,892 336.251 stitutional" building estimated to cost $325,000, were largely responsible
June
319,298
338,959
317,848
352.980
220.558
same period reported a 26.4% increase
this
for
for this increase. These cities
July
218,417 369,358 346,715 368,875 336.477
August
a decrease of 36.5% in additions, alterations,
226,352 351.304 319,618 342.154 343,202 in residential building and
September
247.367 391.063 355.358 355.738 376.869 repairs and installations.
October
203,593 338,472 326,565 344.269 373.881
Of the 21 suburban cities, eight showed increases in valuation for DecemNovember
208,636 309.809 339,408 331,234 359.462 ber compared with November. Three cities-La Grange, Park Ridge, and
December
above that reported for December 1930.
12 mnnthA And. Dec.. 2.000.1073.060.008 4.399.361 4.091.444 4.184.742 4.430.8811 Winnetka-reported a valuation
Four of the 23 reporting cities outside the metropolitan area reported
GOLD AND SILVER
increases in valuation over November. Five-Danville, Decatur, Elgin,
Moline and Peoria-showed increases in valuation for December 1931, over
12 Mos. End. December.
December.
Increase(+) December 1930.
Decrease(-)
The total estimated expenditure of $4,599.987 for all reporting cities
1930.
1931.
1930.
1931.
was to be divided according to types of building, as follows: residential
1,000
1,000
1,000
1,000
1,000
building 55.0%, non-residential building 37.2%, and additions, alterations,
Dollars.
Dollars.
Dollars.
Dollars. Dollars.
Goldrepairs and installations 7.8%. The corresponding distribution for Chicago
115,967 +350,827
466,794
36
32,651
Exports
396,054 +216,065
612,119
was 76.7%, 15.4% and 7.8%; for the suburban cities it was 31.1%. 61.3%
32,778
89,509
Imports
and 7.6%, and for the cities outside the metropolitan area 18.6%, 73.5%,
280,087
145,325
32,742
Excess of Imports-- 56,858
and 7.9%.
SilverA total of 75 residential buildings were authorized in the 45 cities during
-27,672
54,157
26,485
3,472
2,168
Exports
-14,097
42,761
28,664
2,660
December 1931, with an estimated cost of $2.527,815. This figure reveals a
3,215
Imports
sharp increase over November due to the inclusion of the $2,000.000 nurses'
11,396
812
Exceasof exports
home in Chicago. Sixteen of these residential buildings, to cost $2.090,000.
2,179
---1.047
Rum of imports.___..
were to be erected in Chicago; 16. to cost $221,610, in the suburban cities;
MONTHS.
BY
SILVER.
EXPORTS AND IMPORTS OF GOLD AND
and 43, to cost 5216,205,in the cities outside the metropolitan area.
Two hundred and three non-residential buildings, with an estimated
Meer.
Gold.
valuation of $1,712,260, were authorized in the 45 reporting cities during
December. Of this total, 74. to cost 5420,205, were to be erected in Chicago;
1931. 1930. 1929. 1928. 1931. 1930. 1929. 1928.
37, to cost $436,160, in suburban cities; and 92, to cost $855,895, in cities
1,000
1,000
1.000
1,000 1,000 1,000 1,000
metropolitan area. An estimated total of $359.912 was to be
Dollars. Dollars. Dollars. outside the
Dollars. Dollars. Dollars. Dollars.
Expend5.892 8,264 6.692 expended for additions, alterations, repairs and installations on 379 build54 8,948 1,378 52,086
January
7,479
5,331
6,595
25,806
207 1,425
ings. In Chicago. 172 such projects were to cost $213,380; in the suburban
14
February
5,818 7,814 7,405 cities 40 such projects were to cost $54,020; and in the remaining reporting
290 1.635 97,536
26
March
5,752
6,587
4,646
96,469
1,594
110
27
April
4,978 7,485 6.712 cities, 167 such projects were to cost $92,512.
467 83,689
82
828
May
3,336 5,445 7,456
During the year 1931, 16,553 building projects were authorized In the 45
550 99,932
28
40
June
3,709 8.795 8,160 reporting cities, estimated to cost $79,742,614. A total of 24,639 building
74,190
807
1.009 41,529
July
4,544 8,522 9.246
881 1,698
89 39,332
August
projects,
involving a total estimated expenditure of $132,118,820. were
3,903 4,374 6,229
29,708 11.133 1,205 3.810
September
4,424 7,314 7.252 authorized during the year 1930 in the 45 cities. During 1931, therefore,
992
398,604 9,288 8,805
October
4.102 8,578 7.874 declines of 32.8% in number of building projects, and 39.6% in total esti4,994 5.008 30.289 22.918
November
3,472 6,369 8,489 mated valuation, from the preceding year were recorded. Building activity
38 72,547 1.838
32,851
December
period
54,157
83,407 87.382 during 1931 has reached the lowest level on record in the 10-year
28.485
118,683570.760
115,987
12 mos.end. Dec 485,794
for which data are available, both in number of projects authorized and in
total estimated valuation. The decline In valuation from the 1930 level
Imports8,280 6.305
area. These
34,428 12.908 48.577 38.320 2,898 4,758
January
4,468 4.658 was greatest for the cities outside the Chicago metropolitan
16,156 60,198 26.913 14,686 1,877 3,923 6.435
February
5,134 cities experienced a decline of 43.0%. The decline for Chicago during the
1,821 4,831
2,683
26.470
55,768
25,671
March
3.570 3.957 4,888 period was 41.6%, and for the suburban cities 25.6%. Despite the decrease
49,543 65.835 24,687 5,319 2,439 3,488
April
4.602 4,247
50.258 23,552 24,098 1.968 2,636 2,707 5,022 6,221 in valuation reported for the year, eight of the 45 reporting citlis--four in
May
2,364
20,001
30,762
13,938
63,887
June
3,953
4,723 6,544 the suburban group, and four outside the metropolitan area-reported
1.663
10.330
20,512 21,889 35,525
July
3.492 7.345 6.496 increased valuation for 1931. These incrmuies were as follows: Evanston,
57,539 19,714 19,271 2,445 2.685
Aliquot
3,461 4,111 5,739
49,269 13,680 18,781 4,273 2,355 3,270 5,403 7,319 3.1%; River Forest, 61.9%; Wilmette, 2.0%; Winnetka, 0.6%; BloomingSeptember
60,919 35,635 21,321 14,331 2,573 2,652 5.144 5,448 ton. 32.1%; Murphysboro, 56.3%; Ottawa, 82.6%, and Quincy, 32.1%.
October
2.138
29,591
7,123
40,159
94,430
November
Of the total expenditure authorized in 1931, 818,485,501, or 23.2%. was
4,479 5,120
89,509 32.778 8,121 24,950 3,215 2,660
December
to be expended for residential building: $49.764,076, or 62.4, for nonIR ....... ......1 r‘...ay, 1ln gm 'IAA Cal 540 188.807 28.664 42.761 83.940 68.117 residential building, and $11,493,037, or 14.4%, for additions, alterations,
repairs and installations.
The decreases from the 1930 level in residential and non-residential buildDuring
Illinois
in
Situation
Review of the Building
ing for all cities combined during 1931 were 58.3% and 32.5%,respectively.
Additions. alterations, repairs and installations were less severely affected,
December and the Year 1931.
valuation in this classification decreasing 18.0% from 1930.
building
657
projects,
estiDuring the month of December 1931,
In Chicago, residential building accounted for 16.9% of the total
70.6%, and additions, alterations,
to be erected at a total estimated expenditure of $4,599,987, mated expenditure, non-residential for
distribupercentage
and installations for 12.5%. The corresponding
the 45 reportirg Illinois cities, says repairs
the
tion for the suburban cities was 34.6,48.0 and 17.4, and for cities outside
Howard B. Myers, Chief, Division of Statistics & Research metropolitan area, 34.0, 47.9 and 18.1.
which
Twenty-two hundred and four of the 16,553 building projects for
of the Illinois Department of Labor, in reviewing the Illinois
a
permits were issued during the year were for residential building, with
building situation. "This represents a loss of 40.2%," total estimated cost of 518,485,501. Of this amount $8.624.630, or 46.7%
for
continues Mr. Myers, from November in the number of was to be expended for buildings in Chicago. $4,678,825, or 25.3%
119.7%,in total estimated suburban buildings, and $5,182,046, Or 28.0% in the other reporting
000M,—.W
4...cgM00.0.05,
.11M,-INMO.NNOM
were authorized in
buildings authorized, but again of
valuation above the November figure.
The number of
cities of the State.
JAN. 23 1932.]
FINANCIAL CHRONICLE
583
The erection of 5,245 non-residential buildings authorized during 1931,
was to cost $40,764,076. Of this amount, Chicago was to expend $35,- Industrial Employment Conditions in Ohio and Ohio
072,103, or 72.3%, suburban cities $6,485,884, or 13.0%, and cities outCities-Slight Seasonal Improvement Noted in
side the metropolitan area, S7,306,089, or 14.7%.
December.
For the year 1931 the estimated cost of 9,104 additions, alterations,
repairs and installations was $11,403,037. Of this total cost, $6,386,408,
The Bureau of Business Research of the Ohio State Unior 55.6%, was to be expended on Chicago projects, $2,350,748, or
20.5%.
on suburban projects, and $2,755,881, or 24.0%, on projects in the re- versity states that "total industrial employment in Ohio in
maining reporting cities.
December was at substantially the same level as in NovemTABLE 1.-TOTAL NUMBER AND ESTIMATED COST OF BUILDINGS ber, indicating a slight seasonal improvement, since DecemBASED ON PERMITS ISSUED IN 45 ILLINOIS CITIES IN DECEMBER
ber, during the past five-year period, has averaged a decline
1931 BY CITIES.
of 1% from November." In further indicating the course
of employment in Ohio and Ohio cities during December,
December 1931.
November 1931.
December 1930.
the Bureau says:
Cu.
No. of Estimated No. of Estimated No. of Estimated
All three of the major types of employment in the State contributed
Bides.
Cost.
Ridgy.
Cost.
Bldos.
Cost.
somewhat to the slight seasonal gain, although non-manufacturing employment
was the only type to show an actual increase from November. The 1%
Total all cities
657 4,599,987 1,098 2,093,657 912 5,310,396
decline in manufacturing employment which largely dominates the figure for
Metropolitan area
355 3,435,375 616 1,400.642 545 4,023.324 total employment was no greater than the five-year average December
Mosso
262 2,723,585 442 1,124,952 400 2,566,600 decline, and the 15% decline in construction employment wax somewhat
less than the average December decline of 19%, indicating at least seasonal
Metropolitan area, exstability in manufacturing employment and seasonal improvement in concluding Chicago. _
93
711,790 174
275,690 145 1,456,724 struction employment. As compared with December 1930, manufacturing
Berwyn
13,410
11
5
12,880
11
92,500 employment declined 14%; non-manufacturing employment, 13%; conBlue Island
11
4
6,970
1,900
6
9,080 struction employment, 36%, and total employment, 14%.
Cicero
2
4,200
6
12,925
7
6.950
Although in the aggregate there was substantially no change in total
Evanston
14
28
59,000
62.000
19
77,000 employment in December from November, 319 of the 969 concerns reporting
Forest Park
10
2,475
2
113.300
Glencoe
1
12,244
6
300
15,000 to the Bureau of Business Research reported employment increases, and 181,
Glen Ellyn
3
2
400
500
5
1.200 no further decline from November, while two of the 11 major manufacturing
Harvey
5
1.310
3
5.708
11
20,190
groups-the paper and printing and the vehicles groups-reported an
Highland Park
14
4
29,275
20.600
12
103,220 increase in employment, and two groups-the rubber products and the
Kenilworth
4
1
5.365
250
2
91,500
La Grange
metal products-reported no further decline from November. Although
2
1
425
500
Lake Forest
19
8
31.063
41,391
13
220,064 seven of the major manufacturing groups reported employment declines in
Lombard
3
5
9,340
1,810
4
10,490
December
from November, in only two of the major manufacturing groups
Maywood
7
7
2,695
2,100
17
15,775
Oak Park
18,965
19
11
426,060
12
499.130 was the December decline greater than the average December decline during
Park Ridge
7
14,135
8
46,244
1
10,500 th past five-year period. Thus, in five major manufacturing groups-the
River Forest
4
34,750
2
14,300
5
46,955 chemicals, the food products, the lumber products, the machinery, and the
West Chicago
2
2,350
Wheaton
3
3
14,250
3,235
2
21.500 miscellaneous manufacturing-the less-than-average decline in December
Wilmette
1,545
7
11
5
10,060
78,320 indicated some seasonal improvement. In the seven groups reporting a
Winnetka
3
7
900
4
59,650
24,050 decline from November, the declines ranged from 1% in the chemicals,
Total outside metropoli- 302 1,164,612 482
693,015 367 1,287,072 the machinery, and the miscellaneous manufacturing industries to 13% in
tan area
the stone, clay and glass products industry, and amounted to 2% in the food
15,232
14
18
12
85,822 products industry, and 3% in the lumber products and the textile products
17,674
Alton
31
24
279,489 industries.
124.784
19
25,670
Aurora
2
4
5,595
10.000
For the 12 menthe of 1931 as compared with the same period of 1980,
Batavia
11
2
2
54,000
7,000
3,000
Bloomington
2,025
5
2
7,850 total employment in Ohio declined 16%; manufacturing employment, 16%;
Canton
1
500
non-manufacturing employment, 15%, and construction employment, 35%.
Centralia
6
7
27,308
8
14.368
16,750
In the vehicles industry, of which automobile and automobile parts is
Danville
17
27,575
10
13
21,660
10,600
Decatur
32
33
42,125
38
7,431
52,115 the principal industry, the 3% increase in December from November comEast St. Louis
15.735
23
17
22.177
17
20,970 pared favorably with the five-year average condition of stability in DecemElgin
22.750
6
10
3
13,500
14,100 ber. December
Freeport
employment in this group of industries, however, was still
3
5,500
Granite City
10
26,500
8.000
23
15
24% less than in December 1930, and for the 12 months of 1931 averaged
65,160
Joliet
4
1
150
44,000
1
5.200
20% below the corresponding period of 1930.
Kankakee
20
23,023
20.947
86
24
18,819
Moline
The unchanged condition in aggregate employment in 171 metal products
Murphysboro
1
4
200
20,000
4
18,500 industries in December compares favorably with the five-year average
Ottawa
43
55
882,290
137,060
40
176,750 December decline of 1% in these industries during the past five-year period.
Peoria
7
16
7,100
7,440
9
18,500 December employment in these industries, however, was 14% below DecemQuincy
21
38
14,010
30,000
47
169,940
Rockford
23
6,878
48
ber 1930, and for the 12 months of 1931 averaged 18% below the corre21,906
21
119,452
Rock Island
50
59,055
53
44,752
47
97,952 sponding period of 1930.
Springfield
14
22
38.120
47,705
14
41,995
The 1% decline in the 123 reporting machinery industries was slightly
Waukegan
less than the five-year average December decline of 2%. The total volume
TABLE 2.-TOTAL NUMBER AND ESTIMATED COST OF
BUILDINGS of employment in these industries in December was 14% below December
BASED ON PERMITS ISSUED IN 45ILLINOIS CITIES FROM
JANUARY 1930, and the total for the 12 months of 1931 fell 16% behind the correTHROUGH DECEMBER 1931, BY CITIES.
sponding period of last year.
There was no further decline in December from November in employment
Jan.-Dec. 1931.
In the rubber products industry, of which tire and tube manufacturing
Jan.-Dec. 1930.
is the principal industry, although during the past five-year period DecemMiss.
No. of Estimated No. of Estimated
ber has averaged a decline of 1%. December employment in this group
Maps.
Cot.
Mos.
Cost.
of industries was 12% less than in December 1930, while the average for
Total all cities
16.553 879,742,614 24,639 $132,118,820 the 12 months of 1931 fell 21% below the average for the 12 months
Metropolitan area
9,554 64.498,598 14,751 105,397,912 of 1930.
The 13% decline in employment in the stone, clay and glass products
chbtairo
6.767 50,983.141 10,752 87.237.167 Industry was substantially greater than the five-year average December
Metropolitan area, excluding Chicago-- 2,787 13,515,457 3,999
decline of 5%, and the December total was 22% less than that of December
18,160.745
1930, while the total for the 12 months of this year fell 12% behind the
Berwyn
238
693,259
455
938,295 corresponding period of 1930.
Blue Island
255
226,759
282
372,247
As compared with December 1930, non-manufacturing employment inCicero
143
1,071,153
241
1,117,349 creased 9% in Stark County, but declined in all the chief cities of the
Evanston
354
3,251,250
513
3,152,450
Forest Park
122
242,960
195
338,905 State, the declines ranging from 8% in Cincinnati to 35% in Akron, and
Glencoe
49
183,934
97
712,197 amounting to 7% in Cleveland, 17% in Toledo, 18% in Columbus, 25% in
Glen Ellyn
86
215,714
103
473,037
Harvey
Dayton. For the 12 months of 1931 as compared
94
217,692
212
349,477 Youngstown, and 27% in
Highland Park
169
with the same period of 1930, non-manufacturing employment declined 9%
479,305
193
1,088,655
Kenilworth
31
108,265
42
446,578 in Stark County, 10% in Cincinnati, 16% in Toledo, 17% in Cleveland
La Grange
80
119,180
93
739,150 and Dayton, 18% in Youngstown, 26% in Columbus, and 38% in Akron.
Lake Forest
173
1,082,495
192
1,900,829
Lombard
70
Construction employment as compared with December 1930 declined 17%
62.613
80
273,591
Maywood
177
542.059
250
706.391 In Akron, 18% in Columbus, 25% in Dayton, 40% in Cincinnati, 44% in
Oak Park
240
1,249,283
315
1,861,455 Cleveland, 61% in Toledo, 64% in Youngstown, and 66% in Stark County.
Park Ridge
132
533.884
248
612,775 For the 12 months of 1931, the decline from 1930 in construction employRiver Forest
49
711,998
72
439,843
West Chicago
27
37,840
44
73,586 ment amounted to 12% in Akron, 21% in Dayton and Stark County, 23%
Wheaton
51
161,885
67
266,000 in Columbus, 36% in Cleveland, 39% in Cincinnati, 46% in Youngstown,
Wilmette
148
920,949
186
903,285 and 54% in Toledo.
Winnetka
99
1,402,980
119
1,394,650
Employment increased slightly in December from November in all the
Total outside metropolitan area
6,999 15,244,016 9,888 26.720.908 eight chief cities of the State except Akron, which remained substantially
unchanged from November, and Youngstown, which reported a further
Alton
345
495,323
445
1,120,158 decline of 9%. The December increase from November in all the cities WU
Aurora
486
1,230,817
704
1,435,312
Batavia
28
44,005
40
90,945 due primarily to the increase in non-manufacturing employment incident
Bloomington
61
711,700
129
538,700 to the Christmas holiday requirements. Non-manufacturing employment
Canton
45
38,795
88
194,523
and in all the cities except
Centralia
10
36,500
30
132,350 increased in all the cities except Toledo,
Danville
135
280,974
139
378,347 Youngstown the increase was greater than the five-year average December
Decatur
252
781,100
447
1,991,015 increase. In two of the chief cities-Akron and Canton-manufacturing
East St. Louis
541
1,065,252
655
1,389,304 employment remained substantially unchanged in December from November
Elgin
459
627
607.593
741,616
Freeport
132
284.773
183
604,786 and in two others-Cleveland and Toledo-there were increases of
Granite City
15
65
66,150
315,400 and 3%, respectively. Manufacturing employment, however, declined 1%
Joliet
330
884.997
440
2,479,540 in Cincinnati, Columbus and Dayton, and 11% in Youngstown. ConstrueKankakee
58
82
140,848
254,102 tion employment declined in all the chief cities of the State except CincinMoline
716
531,500
933
1,353,354
Murphysboro
3
3
7,500
4.800 nati, which reported a 6% increase.
Ottawa
101
71
523,300
As compared with December 1930, total industrial employment declined
286.550
Peoria
2.511,582 1,179
806
3,473,395 in all the chief cities of the State, the declines ranging from 2% in Dayton
168
240
1,362,403
Quinn'
1,031,674 to 31%
in Youngstown, and amounting to 9% in Cleveland, 12% in Akron,
Rockford
639,362 1.038
583
2,854,090
636
468,935
Rock Island
973
979,408 13% in Cincinnati, 15% in Columbus, and 22% in Toledo and Stark
epringfield
877
988
1,804.873
3.286.369 County. For the 12 months of 1931 total employment declined in all the
242
Waukegan
727.644
359
117851170 chief cities of the State as compared with the corresponding
period of
---,....
[VoL. 184.
FINANCIAL CHRONICLE
584
in
1930, the declines for the year amounting to 6% in Dayton, 18%
Cincinnati, 14% in Cleveland, 16% in Toledo, 16% in Columbus, 20% in
Youngstown, and 21% in Akron and Stark County.
INDUSTRIAL EMPLOYMENT IN OHIO.
In Each Series Average Month 1926 Equals 100.
month or nearest
(Based on the number of persons on the payroll on the 15th of the
representative day as reported by co-operating firms.)
Industry.
Index
Dec.
1931.
Chemicals (25)•
Food products (63)
Lumber products (84)
Machinery (123)
Metal products (171)
Paper and printing (53)
Rubber products (20)
Stone, clay and glass products(66)Textiles (45)
Vehicles (58)
Miscellaneous manufacturing(45)
90
106
81
76
62
99
65
60
84
66
89
Total manufacturing (703)
Average
Average
Jan.Change Change Change
Dec.
from December from
from December Change
Nov.
from
1931. November 1930.
1930.
1926- 30.
-4%
-1%
-1%
-1
-4
-2
-1
-1
-11
---14
-14
-13
-6
-2
-12
-22
+4
-24
-10
-7%
-6
-20
-16
-18
-5
-21
-12
-9
-20
-7
-1
-14
-18
-8
-4
+3
71
-e
100
100
84
+18
-1
+16
-7
-12
-7
-10
-14
89
38
+9
-15
+4
-19
-13
-36
-15
-35
-14
-1
74
All industries (989)
•Figures in parentheses indicate number of reporting firms.
-18
Service (45)
Trade (35)
Transportation and public util.(15)
Total non-manufacturing (95)
Construction (171)
Lumber Orders Slightly Improved-Low Production
Continues.
Another excess of lumber orders over production, due
mainly to continued low production, marked the week
ended Jan. 16, is indicated in telegraphic reports from 674
leading hardwood and softwood mills to the National
Lumber Manufacturers Association, giving new business as
49% above a combined cut of 95,549,000 feet. Shipments
were 42% above the cut. A week earlier 682 mills reported
both orders and shipments amounting to 45% above a cut
of 91,981,000 feet. For the latest week hardwood orders
were 65% above and shipments 77% above production.
Softwood orders were 48% above and shipments 38% above
the cut. Comparison by identical mill figures for the latest
week with the equivalent period a year ago shows-for
softwoods, 430 mills, production 42% less, shipments 40%
less and orders 35% less than for the week in 1931; for hardwoods, 181 mills, production 53% less, shipments 5% less
and orders 18% less than the volume for the week last year.
Lumber orders reported for the week ended Jan. 16 1932,
by 476 softwood mills totaled 127,932,000 feet, or 48% above
the production of the same mills. Shipments as reported
for the same week were 119,910,000 feet, or 38% above
production. Production was 86,611,000 feet.
Reports from 216 hardwood mills give new business as
14,728,000 feet, or 65% above production. Shipments as
reported for the same week were 15,806,000 feet, or 77%
above production. Production was 8,938,000 feet. The
Association's statement continues:
identical
at the end of the week at 102 mills were 57,666,000 feet. The 107
a demills reported a decrease in production of 44%, and in new business
crease of 36% as compared with the same week a year ago.
production
The Western Pine Association of Portland, Ore., reported
from 121 mills as 11,546,000 feet, shipments 33,016,000 and new business
production
34,587,000. The 97 identical mills reported a 55% decrease in
and a 25% decrease in new business, compared with the same week last
year.
The Northern Pine Manufacturers of Minneapolis, Mimi., reported no
production from seven mills, shipments 1,556.000 feet and new business
1,133,000 feet. The same number of mills reported a decrease of 58%
in new business compared with the same week of 1931.
The Northern Hemlock & Hardwood Manufacturers' Association of
Oshkosh, Wis., reported production from 18 mils as 913,000 feet, shipments 1,174,000 and orders 847,000 feet. The 15 identical mills reported
a decrease of 74% in production and a decrease of 62% in new business
compared with the same week of 1931.
Hardwood Reports.
The Hardwood Manufacturers' Institute of Memphis, Tenn., reported
production from 198 mills as 8,126,000 feet, shipments 14,241,000 and new
business 13,675,000. The 166 identical mills reported production 49%
less and new business 16% less than for the same week last year.
The Northern Hemlock & Hardwood Manufacturers' Association of
Oshkosh, Wis., reported production of 18 mills as 812,000 feet, shipments
1,565,000 and orders 1.053,000. The 15 identical mills reported a 76%
decrease in production and a 35% decrease in new business compared with
the corresponding week a year ago.
The Paper and Pulp Industry in November 1931Total Paper Production Decreased 4% Under
October 1931-6% Below November 1930.
According to identical mill reports to the Statistical Department of the American Paper & Pulp Association from
members and co-operating organizations, the daily average
of total paper production in November decreased 4% under
October and 5% under November 1930. The daily average
wood pulp production in November was 8% above October
1931 and 4% below November 1930. The survey issued by
the Association Jan. 14 continues as follows:
Compared with November a year ago, the daily average production
registered a decrease in the following grades: Uncoated book, paperboard, wrapping, tissue, writing and hanging papers. Compared with
October 1931, the following percentage decreases were registered in the
daily average production: Paperboard, 10.2%; bag, 5.7%; wrapping,
building, 15.5%.
3.3%; tissue, 4.3%; writing, 6.2%, and
The 11 months' cumulative total of production of paper was 9.2% below
than
the corresponding period in 1930, while shipments were 8.6% smaller
a year ago. Newsprint, uncoated book, bag, hanging and building papers
have shown improvement, while paperboard and writing papers showed
practically no change in production at the end of the 11-month period as
compared with the end of the 10-month period.
The 11 months' cumulative total of wood pulp production for 1931 was
reported as 14.7% below the level of the same period in 1930.
Total shipments of wood pulp to the outside market were 29.3% below
the level of the 11 months' total of 1930. Bleached sulphite, Mitscherlich
sulphite and kraft pulp shipments to the open market were greater than In
the first 11 months of 1930.
...Total wood pulp inventories showed an increase, and at the end of
November were 5.5% above the level of November 1930. All gradee,
excepting bleached sulphite, kraft and soda pulp,showed inventories above
the level of November 1930.
REPORT OF PAPER OPERATIONS IN IDENTICAL MILLS FOR THE
MONTH OF NOVEMBER 1931.
Stocks on Hand
Shipments. End of Month.
Produdion.
GradeNewsprint
Bonk, uncoated
Paperboard
Wrapping
Bag
Writing, &c
Tissue
Hanging
Building
Other grades
Tons.
94,149
83,171
138,206
37,419
11,151
19,293
5,043
3,371
3,944
13,630
Tons.
93,723
82,338
136,810
37,012
11,014
19,814
4,883
3,036
3,691
13,158
Tons.
82,398
46,421
58,166
46,758
5,065
43.197
3,947
3,252
3,399
13,982
Unfilled Orders.
Reports from 409 softwood mills give unfilled orders of 445,619,000 feet,
on Jan. 16 1932, or the equivalent of 11 days' production. This is based
upon production of latest calendar year-300-day year-and may be
compared with unfilled orders of 513 softwood mills on Jan. 17 1931, of
769,264,000 feet, the equivalent of 15 days' production.
The 378 Identical softwood mills report unfilled orders as 431,215,000
256,585
385,279
389,377
Total all grades, Nov. 1931
average production, as
256,585
4,771,025
4,768,832
feet on Jan. 16 1932, or the equivalent of 11 days'
Total all grades 11 months 1931_ _
of 17 days' average
266,805
5,218,378
Total all grades 11 months 1930.... 5,249,445
compared with 653,734,000 feet, or the equivalent
of
production
430
week's
Last
ago.
year
a
date
Production on similar
MILLS FOR
year ago it was 146,- REPORT OF WOOD PULP OPERATIONS IN IDENTICAL
identical softwood mills was 84,465,000 feet, and a
THE MONTH OF NOVEMBER 1931.
feet and 192,973,000;
460,000 feet; shipments were respectively 116,302,000
In the case of hardand orders received 125,023,000 feet and 191,163,000.
Shipped Stocks on
Used
and a year ago
During
During HandEtui
Prowoods, 181 identical mills reported production last week
and
feet
14,616,000;
Month. ofMonth,
Month.
duction.
13,883,000
shipments
17,172,000;
8,045,000 feet and
and orders 12,730,000 feet and 15,479,000.
Tons.
Tons.
Tons.
Tons.
Grade68,291
73,994
467
54,852
West Coast Movement.
Groundwood
24,747
26,698
834
8,478
follow- Sulphite, news grade
the
Seattle
from
wired
Association
Lumbermen's
The West Coast
13,751
2,524
16,694
3497
bleached
Sulphite,
for
2,333
1,841
ing new business, shipments and unfilled orders for 215 mills reporting
366
1,473
Sulphite, easy bleaching
2,003
2,988
780
1,704
Sulphite, Mitscherlich
the week ended Jan. 16:
25,273
3,289
4,939
20,099
Kraft
,
Pull
SHIPMENTS.
NEW BUSINESS. I UNSHIPPED ORDERS.
12,669
9,849
2,419
2,868
Soda pulp
Feet.
Feet.
Feet.
372
384
118
60
Other grades
Coastwise and
Domestic cargo
Domestic cargo
delivery ____ 24,628,000 delivery ____120,833,000 intercoastal _ 25,856,000
159,903
140,963
12,178
74,275
1931
Nov.
grades
all
Total
16,612,000
Export
64,005,000
Export
20,373,000 Foreign
74,275
Total all grades 11 months 1931_ 1,844,446 1,682,409 157,033
17,871,000
57,360,000 Rail
Rail
18,725,000 Rail
70,416
Total all grades 11 months 1930._ 2,161,773 1,933,740 222,015
4,058,000
Local
Local
4,056,000
64,193,000
242,198,000 Total
Total
67,782,000 Total
Sao Paulo Coffee Realization Plan-Remittances ReProduction for the week was 55,905,000 feet.
For the year to Jan. 9, 167 identical mills reported orders 10.8% above
ceived and in Transit for November and December
numsame
The
production and shipments were 13.3% above production.
First Half of Second Year of Plan.
and
compared
as
9,
Jan.
on
0.4%
of
ber of mills showed a decrease in inventories
with Jan. 1.
Speyer & Co. and J. Henry Schroder Banking Corp.,
Southern Pine Reports.
S. A. Fiscal Agents for the State of Sao Paulo 7% Coffee
U.
The Southern Pine Association reported from New Orleans that for
Realization Loan of 1930, report that remittances received
115 mills reporting, shipments were 9% above production, and orders
29% above production and 18% above shipments. New business taken and in transit for the first half of the second year of the
during the week amounted to 23,583,000 feet (previous week 21.693,000 at Coffee Realization Plan's operation amounted to $8,257,000
114 mills); shipments, 19,971,000 feet (previous week 18,585,000): and
while
production 18,247,000 feet (previous week 16,667,000). Orders on hand (including £594,522 converted at $3.45 per pound),
JAN.
23 1932.]
FINANCIAL CHRONICLE
585
six months' interest and sinking fund require $7,931,000
on the outstanding bonds. The announcement, issued
Jan. 21, also says:
Importation into the United States of refined sugar from Germany and
England. He also pointed out that shipments of refined sugar from Cuba
to the United States increase demoralization of raw sugar prices In the
United States' market.
There should have been received from the sale of pledged coffee and from
the special tax, a total of $9,287,000 which includes provision for the reserve
account. November remittances have all been received and the equivalent
of the $1,030,000 balance for December has been deposited with the
Bankers' agents in Sao Paulo, in milreis at the rate of 16 milreis per dollar,
and its remittance to the Fiscal Agents is expected in the near future.
Java Sugar Head Fears Price Fall.
From The Hague (Holland) Associated Press advices
Jan. 19, published in the New York "Evening Post," said
Receipt of Funds Announced to Cover Feb. 1 Interest
on German Consolidated Municipal 7% Loan.
Chase Harris Forbes Corp., as paying agent,announce the
receipt of $692,020 to cover Feb. 1 interest on the outstanding $19,772,000 German Consolidated Municipal Loan
7s due 1947.
World's
Expressing grave fears of a further fall in prices, Mynheer Hartman,
head of the Java delegation to the international sugar council, said to-day
that the question of restricting more severely the production of sugar would
be reopened.
It was clear that the limits of the Chadbourne plan had been too wide for
Java, whose production would not reach the quota specified in the first
year of the agreement, he said, and producers therefore would examine
proposals for a more drastic scheme of restriction.
He added that the union of Java sugar producers controls 86% of current
production, but if there were any more deflections from that body it would
surely collapse at the end of the year and a calamitous fall of prices would
ensue.
Coffee on Jan. 1 Highest in
History.
The world's visible supply of coffee on Jan. 1 1932, was
Chadbourne Returns from Meeting in Paris
34,695,599 bags, or the highest figure in history, according Thomas L.
International Sugar Council, Tentatively Adof
to statistics released by the New York Coffee and Sugar
journed—European Production of Sugar in 1931
Exchange on Jan. 15. The Exchange reports:
Under International Agreement 40% Less Than
The visible supply on Dec. 1 1931, was 33,517,684 bags and on Jan. 1
1931. was 29,768,940 bags.
in 1930—Further Curtailment Looked For—Cuba
Statistics from Sao Paulo indicate that the current Santos coffee crop
and Java's Production and Export Viewed as
Is moving into interior Sao Paulo warehouses with unusual rapidity.
Serious Problem.
During December 1931,a total of 2,507,000 bags went from the plantations
to the warehouses, making the total receipts for the last six months of
With his return from Europe on Jan. 13 on the steamer
1931 equal to 14,418,350 bags. This compares with receipts of 7,429,540
bags for the last six months of 1930 and 13,236,399 bags for the similar Berengaria, Thomas L. Chadbourne issued a statement with
period in 1929.
regard to the conference in Paris of the International Sugar
Council, Mr. Chadbourne indicates that on Jan. 5 the conCubans Start Sugar Mills—Visit of T. L. Chadbourne ference adjourned for some weeks to assemble additional
to Cuba.
data. The results of the workings of the international
Eighteen sugar mills in Cuba started grinding on Jan, 15 agreement in the first year of its operations were brought
In accordance with a recent Presidential decree, although as out at the Paris conference, according to Mr. Chadbourne,
yet no quotas have been assigned nor is restriction estab- who expresses the belief that further limitations on both
lished in conformity with the Chadbourne plan. Havana export and production will be made. "The countries whose
advices Jan. 15 to the New York "Times" reporting this, production and export still constitute a problem, are," says
went on to say:
Mr.Chadbourne,"Cuba and Java." Hi sstatement follows:
Visible Supply of
This is due to the delay of Javanese producers, it is asserted here, in
I went to Europe to attend the meeting of the International Sugar
advising the international sugar conference of her attitude on restriction Council in Paris Dec. 14, which, after a four-day session, adjourned tenof the coming crop.
tatively until Jan. 5. It was found, however, on Jan. 5, that further
News that Thomas L. Chadbourne, author of the Chadbourne plan for adjournment for some weeks was necessary in order to assemble the addithe stabilization of the sugar market, will arrive in Havana on
Tuesday. tional data required to enable the Council to make decisions on the vital
Jan. 19, has created a groat deal of conjecture in sugar circles here.
Not- questions remaining unsettled. Those questions revolve around the probwithstanding recent optimistic declarations of Mr. Chadbourne, a strong lem of what further limitation upon sugar production and exportation is
opinion prevails throughout Cuba that Java will evade the restrictions necessary in order to establish an equilibrium between world supply and
demanded by Cuba and the possibility of an unrestricted harvest is widely demand.
discussed.
The International Agreement, or so-called Chadbourne Plan, concluded
Regarding Mr. Chadbourne's visit to Cuba, the "Times" at Brussels last May (and to which the nine chief exporting countries are
now signatory), was based upon the principle that if the world consumed
of Jan. 19 said:
as much sugar in 1931 as it did in 1930, the scheme of export limitations
Thomas L. Chadbourne, author of the Chadbourne plan for stabilization agreed upon would secure correspondence between demand and available
of the world's sugar industry, will arrive in Cuba to-day to
confer with supply. It is now clear, however, that the depths to which the business
President Machado in a final effort to save his plan. He sailed on
Friday, depression would go were never plumbed when the Agreement was made,
two days after having returned from the adjourned international sugar and as a consequence, in spite of all the export limitations which were
conference in Paris.
imposed and the crop reductions which were made, there is still more
The purpose of Mr. Chadbourne's hurried trip is a last-minute
attempt sugar available than the people are buying.
to persuade the Cuban growers that the island must make a further
I am quite certain that further limitations upon both export and prodrastic
cut in the production if the efforts to stabilize the price of the
commodity duction, which the situation now obviously requires, will be made. I
are to be successful. It is felt by some that if Cuban growers refuse to was never more confident than now, accordingly, of the attainment by
reduce their production the world output will be so large as to glut the the International Agreement of the purpose for which it was effected.
market the coming year.
The sugar industry now understands itself as never before. The countries
Mr. Chadbourne will remain about 10 days in Havana before returning which export sugar are making their production plans in accordance with
here, after which it may be necessary for him to return to Paris to
re- that understanding. Another year should see the sugar business out of
assemble the international conference. At present it is understood that the woods.
Cuba will be asked to take a cut of about 800.000 tons to a total of about
The meeting at Paris brought into clear relief the results of the working
2,200,000 tons.
of the International Agreement for its first year. Production of sugar in
The principal differences over the international agreement have been Europe in 1931 was nearly 3,000,000 tons, approximately 40% less than
between Cuba and Java. Cuban delegates to the conferences have stead- in 1930. There is reason to believe that the production of Europe for
fastly maintained that Java should participate in any further substantial 1932 will be even less than in 1931, and that by the end of 1932 Europe's
reductions in world production. Java, on the other hand, has maintained surplus stock will have been virtually absorbed. This is a great achievethat it has adhered to the very letter of the original Chadbourne agreement ment, and tho European beet countries deserve every credit.
which permits the grinding of 2,400.000 tons in 1932.
The countries whose production and export still constitute a serious
Finally, an agreement was reached under which the Cuban delegates problem are Cuba and Java, the chief exporting countries. When the
would lay before their growers a plan for sharp curtailment of the 1932 International Agreement was made, Cuba had on hand unsold surplus
grinding, while the Dutch interests in Java, representing about 75% of the stocks of 1,300,000 tons and Java nearly 700,000 tons. These stocks
Javanese output, agreed to present a program for drastic curtailment in the were segregated and it was planned to market them pro rata over the
crop for 1933.
next five years and to reduce current crops accordingly.
Grinding of the 1932 crop has already begun in Cuba by official decree
Cuba reduced its production in 1931 by 1,550,948 tons, nearly 47%,
of President Machado, although the sugar companies do not yet known less than its production of 4,671,000 tons in 1930. Cuba sold the whole
what their quotas are to be.
of its export quota of 655,000 tons to countries other than the United
States. The International Agreement does not govern Cuba's export to
the United States, but Cuba had planned exports to the United States of
Cuban Sugar Statistics.
2.800,000 tons. Owing, however, to reduction in American demand,
The following from Havana is from the "Wall Street Cuba was not able to realize its expected American export in 1931 by
500,000 tons. Thus, though during 1931 Cuba sold 260,000 tons from
Journal" of Jan. 13:
her segregated surplus, she will enter upon her new crop year in a few
Cuban sugar exported from Cuba for the year ended Jan. 1 1932, aggre- days with approximately 1,540,000 tons of sugar still on hand. Cuba
gated 2,654,903 long tons, of which 2,027,708 went to the United States will certainly limit her new crop with due regard to this fact.
and 627,195 to other countries. This compares with 3,050,123 tons exWhen the International Agreement was made. Java was in process of
ported in corresponding period of 1929-1930, of which 2.077,271 went to grinding her 1931 crop. Java's output of sugar in 1931 was, accordingly,
only 4.4% less than in 1930. Furthermore, when the International Agreethe United States.
Available sugar stock in Cuba on Jan. 2, was 859,492 tons, compared ment was signed, Java had already made most of the commitments for its
crop of 1932. and it is expected that Java's production this year will,
with 190,877 on the like 1931 date.
accordingly, be reduced by only some 17%. The full effect of the International Agreement on Javan production will not be realized until its crop
Sees
Cuba
Menace
in
Sugar
to
Babst
Imports.
D.
E.
in 1933, arrangements for the planting of which are now in process. There
s every reason to believe that Java's crop for 1933 will accordingly repreFrom the "Wall Street Journal" of Jan. 18 we take the sent
an extremely drastic reduction.
Havana:
following from
Java had on hand, as stated above, nearly 700.000 tons of surplus sugar
Earl D. Babst, Chairman of American Sugar Refining Co., declared on on May 1 1931. Owing to the great falling off in the demand for her
sugars in the Far East (her normal market), it is likely that on April 1
arriving in Cuba that the most serious menace to the island now is tt
586
[VOL. 184.
FINANCIAL CHRONICLE
1932, Java will have an additional surplus of some 700,000 tons. Java's production circles, an almost steady monthly decline was reflected in the
new crop for 1932 will give her, on April 1 1933, a probable surplus of wholesale shoe price index throughout the year.
600,000 or 700,000 tons more. Thus. Java will have on hand at the
beginning of the 1933 crop, total unsold sugar amounting to some 2,000.Activity in the Cotton Spinning Industry for
000 tons—approximately two-thirds of her normal annual yield.
Aside from the obligations of the International Agreement not to conDecember 1931.
such
carrying
tinue accumulating surplus stocks, the financial burden of
The Department of Commerce announced on Jan. 21
huge surpluses is stupendous. On April 1 1932, Java's surplus sugars
will represent $40,000,000 tied up in money at present Far Eastern sugar that according to preliminary figures compiled by the
prices, and some $49,000,000 at Java's cost prices. On April 1 1933, Bureau of the Census 32,326,526 cotton spinning spindles
Java will have in surplus sugars a value of $52,000,000 at present Far
were in place in the United States on Dec. 31 1931, of
Eastern prices, to produce which cost Java more than $64,000,000.
The Cuban surplus stocks of 1,540,000 tons on hand as Cuba starts which 24,637,864 were operated at some time during the
her new grinding season, tie up in money at present prices, $32,000,000. month,
compared with 24,860,684 for November, 25,To produce this same sugar cost Cuba at least $52,000,000.
Thus, Java and Cuba together, at the beginning of the new crop season, 188,112 for October, 25,236,916 for September, 25,622,526
will have on hand sugar to produce which cost them more than $116,- for August, 25,825,718 for July, and 25,549,782 for De000,000. If that sugar could be sold at present prices it would yield only cember
1930. The aggregate number of active spindle
$72,000,000, a loss of at least $44,000,000. If this same sugar were to
be dumped on the present saturated markets, there would be such demorali- hours reported for the month was 5,950,905,474. During
zation in prices that the greater part of the whole of this huge cost-invest- December the normal time of operation was 26 days (alment would be lost.
lowance being made for the observance of Christmas Day),
It is clear that the only way by which either Java or Cuba can save
itself from further disastrous losses is by restricting new production to a compared with 243. for November, 26% for October,
point which will make possible the marketing of these unsold surpluses at 253-i for September, 26 for August, and 26 for July. Based
the earliest possible moment, and before further stocks accumulate. There
on an activity of 8.93 hours per day, the average number
is no doubt, accordingly, that all of the countries concerned will adapt
their future production, and particularly their 1932 export. It is because of spindles operated during December was 25,630,569, or
of the earnest determination of all the countries involved to take the at 79.3% of capacity on a single-shift basis. This pernecessary additional steps, in the light of changed conditions, to bring
supply into actual equilibrium with demand, that I am optimistic as to centage compares with 85.8 for November, 85.1 for October,
88.1 for September, 81.8 for August, 86.0 for July, and 75.9
the outcome.
When one considers the magnitude of the sugar industry and the vary- for December 1930. The average number of active spindle
differthe
by
marketed
ing conditions under which sugar is produced and
ent countries, the results of the 11AG year of the International Agreement hours per spindle in place for the month was 184. The
demonstrate the value of this, probably the first, attempt to bring about, total number of cotton spinning spindles in place, the
with governmental sanction, co-operation among the factors in a world- number active,
the number of active spindle-hours, and the
wide industry producing a commodity of universal consumption. It represents an attempt at industrial world-planning which should have salutary average hours per spindle in place, by States, are shown in
the following statement:
consequences not only to sugar but possibly to other commodities.
Mr. Chadbourne's departure for Europe was referred to
in our issue of Dec. 12, page 3878. One of the press accounts
from Paris Dec. 14, regarding the conference, is taken as
follows from the New York "Times" Dec. 15:
Spinning Spindles.
State.
In Place
The first day's meeting of the International Sugar Council here gave United States
evidence of both strength and weakness of the Chadbourne agreement
established last May to control world sugar production and the marketing Cotton growing States
New England Statesof vast surplusses.
All other States
The fact that Peru joined to-day after having been with the Dominican
Republic, one of the two large exporting countries not participating, Alabama
Connecticut
shows there is no intention of dropping the understanding.
But it was learned to-night that the difficulties of getting Java producers Georgia
Maine
formidable.
proving
to accept a further large cut in production next year are
Massachusetts
Likewise it was reported the Cubans had brought complaints against Mississippi
the proposed increased production of United States beet sugar growers New Hampshire
New Jersey
as well as objections to the heavy cuts they are being asked to make in New York
production. The Council received last night a cablegram from a Cuban North Carolina
labor leader, Senor Blanca, saying that further reduction would mean ruin. Rhode Island
Carolina
Java did not have to cut her production this year, her crop having South
Tennessee
been planted at the time of the Chadbourne agreement. Thus she will Texas
sell
can
Virginia
have a surplus next spring of about 1,200,000 tons. As Java
profitably at a price lower than any other producer, she is in a strong All other States
bargaining position.
Active Dur-
Aa108 Spindle Hours
for December.
Total.
Dec. 31. ing December
32,326,526 24,637,864 5,950,905,474
19,083,052 16,855,940 4,585.822,924
11,873,558 6,791,252 1,190,862.068
990,672 174,220,482
1,369,916
1,852,494 1,686,614 462,208,028
702,742 125,379,087
1,067,036
3,243,208 2,833,404 785,500,377
763,248 133,658,800
977,796
6,511,472 3,479,682 595,326,059
127,720
39.267.195
206,048
749,486 146,590,261
1,186,870
207,422
373,276
41,506,236
84,097,958
496.208
638,296
6,196,406 5,340,240 1,284,267,717
998,846 170,969,845
2,013,120
1,601,896,476
5,702,584 5,383,062
552,522 181,367,894
621,200
181,248
45,430,011
282.100
586,072 147,363,354
679,254
549,348 105,707,176
775,366
Average per
Spindle in Plato,
184
240
100
127
250
118
242
137
91
191
124
111
132
207
85
28 1
293
16
217
136
On Dec. 14 the International Sugar Conference voted to
admit Peru to membership, it was learned from a Paris More Cloth Sold by United States Cotton Mills in
United States in Week of Jan. 16 Than in Any
account to the New York "Journal of Commerce," which
Week in Several Months, According to New York
also said:
Cotton Exchange Service.
The country's export quota in the consortium will amount to 360,000
tons this year and 373,750 tons in succeeding years. Peru will have five
The cotton mills of this country sold more cloth in the
votes in the Conference.
Jugoslavia is to be admitted to the consortium as soon as it meets the week ended Jan. 16 than in any other week for several
same obligations respecting production as govern the present members. months,according to the New York Cotton Exchange Service.
Distributors and users, it is said, bought freely on numerous
The New York Hide Exchange Reports that Leather lines of both unfinished and finished goods, with deliveries
Consumption Gains as Stocks Decline.
on some contracts running through the second quarter of
Statistics released Jan. 19 by the New York Hide Ex- the season. Total sales were doubtless in excess of total
The Exchange Service on Jan. 19 also said:
change reflect an increase of 4.2% in the consumption of production.
With the raw material strengthening and goods moving more freely,
leather during the first 11 months of last year, against the prices of numerous standard goods advanced appreciably. Print cloths
same period in 1930. The Exchange states that the total were up a quarter of a cent a yard and shootings an eighth of a cent, while
have been advanced twice by a quarter of a cent in each instance.
stocks of all cattle hide leathers in all hands on Nov. 30 1931 percales
The improvement in the volume of turnover was attributed partly to seawere equivalent to 7,302,000 hides, a decline of 7.6% from sonal influences, partly to the rise in the raw material and in security
markets, and partly to indications of continued curtailment of producNov. 30 1930.
and finishers are more disposed to-day than in the
tion. Manufacturers
past to formulate their production and price policies with a view to the
Unusual Increase Shown in December Shoe Output, welfare of the industry as a whole rather than from the standpoint of their
According to the New York Hide Exchange—Total individual advantage, and this has given buyers more confidence in current
values and more willingness to buy ahead. This is largely a result of the
Production for Last Year Up 3.8%.
long-continued, intensive work of the Cotton Textile Institute.
The New York Hide Exchange preliminary shoe production estimate released Jan. 14 shows that in direct contrast Total Stock Nov. 30 of Indian Cotton in India 4,982,000
to the usual seasonal decline in the output of footwear, the
Bales, Compared with 5,905,000 Bales on Same
production registered a marked and unusual increase durDate in 1930.
ing December, when 19,200,000 pairs were manufactured,
As a result of the fact that the Indian cotton crop is about
against 18,470,000 pairs in November and an increase of
than last year and far below the averabout 10% over December 1930. The Exchange further one million bales less
seasons, the total stock of Indian cotton in
recent
of
age
says:
Nov. 30 was only 4,982,000 bales compared with
The upturn in production last month brought the total for the year to India on
315,836,000 pairs, or 3.8% over the output during 1930, regardless of the 5,905,000 on the corresponding date last season and 6,489,000
fact that production during the first two months of last year was appre- two seasons ago, according to the New York Cotton Exciably below the corresponding months in 1930.
The latter on Jan. 12 said:
During March considerable activity developed which continued well into change Service.
the summer and reflected a consistent monthly increase in production over
the same time in 1930. In October and November, however, the output
showed the usual seasonal decline only to register a marked gain during the
last month of the year. Accompanying the increased activity in shoe
These figures on the Indian stock include the estimated unpicked portion of the crop as computed on the basis of latest available crop estimates.
While India has exported much less cotton to Japan and China this season than last season, the United States has exported very much more to
JAN.
23 1932.]
FINANCIAL CHRONICLE
those countries. Exports from India to the Orient during the first four
months of the season,from Aug. 1 to Nov. 30,totaled only 430,000 running
bales against 625,000 in the same period last season, while exports from the
United States to Japan and China in the same period were 1,122,000 against
504,000 last season.
Hogs Touch Record Low.
The following from Chicago is from the "Wall Street
Journal" of Jan. 20:
Average price of $4.01 a hundred weight for hogs here during the week
ended Jan. 16 touched the lowest weekly average for 33 years, and was a
decline of 11 cents from the preceding week and compared with $7.71 cwt.
in the like 1931 week. Receipts at seven principal markets totaled 636,644
head against 666,747 in the previous week and 705,972 in the like 1931 week.
Average price of all grades of beef steers sold at Chicago out of first hands
for slaughter was $6.62 cwt., against $6.88 in the preceding week, and
$9.66 in the like 1931 week.
Production of Linseed Oil Decreased During Quarter
Ending Dec. 31 1931 As Compared with Corresponding Quarter Last Year.
The Department of Commerce announced on Jan. 19
that according to preliminary Census figures there were
25 mills in the United States which crushed flaxseed during
the quarter ending Dec. 31 1931,reporting a crush of 199,149
tons of flaxseed and a production of 130,478,580 pounds of
linseed oil. The announcement by the Department adds:
587
the Federal Court in Texas will hold that martial law is
invalid. However, the case undoubtedly will be taken to
the Supreme Court."
Reports yesterday from Austin indicated that the Federal
Court's decision will be made known next week. It is
generally believed that an adverse decision would have no
immediate detrimental effect on curtailment, as the martial
law rule now in effect would be superceded by the Texas
Railroad Commission which, in turn, could secure as strict
an observance of Governor Sterling's curtailment measures
as has the military.
Completions in the East Texas field up to Jan. 20-totaled
3,851. Under the present ruling each well is restricted to
an output of 100 barrels per day. However, the rising
number of completed wells will necessitate a further lowering
of per well allowables to hold total production within the
required volume.
Operators in the Hobbs, N.M.,oil field have unanimously
voted for continuation of production proration for another
year. The agreement permits any well owner to withdraw
from its obligations after giving 30 days' written notice of
his intention.
One price change of importance occurred during the
week when, on Jan. 18, the Stoll Oil Raining Co. reduced
the price of oil in its Kentucky lines 15c. per barrel, making
the new price 60e. per barrel.
Maintenance of prices throughout Mid-Continent, Texas
and adjacent fields has been well sustained through the
winter thus far, and indications are that there will be no
reductions before the spring upward movement.
Price changes follow:
These figures compare with 206,944 tons of seed crushed and 131,256,804
pounds of oil produced for the corresponding quarter in 1930, 278,525 tons
of seed and 182,227,710 pounds of oil in 1929, 313,346 tons of seed and
206,273,130 pounds of oil in 1928, 355,571 tons of seed and 238,046,103
pounds of oil in 1927, and 310,382 tons of seed and 206,496,046 pounds of
oil in 1926.
Stocks of flaxseed at the mills on Dec.311931,amounted to 104,192 tons
compared with 125,218 tons for the same date in 1930, with 121,782 tons
in 1929, with 214,578 tons in 1928, with 252,554 tons in 1927, and with
172,324 tons in 1926. Stocks of linseed oil reported by the crushers wore
Jan. 18.-Stoll CBI Refining Co., Kentucky, reduces prices of oil in its
123,626,578 pounds on Dec. 31 1931, compared with 83,035,584 pounds for lines
15c. per barrel new price 60c. per barrel.
the same date in 1930, with 99,738,526 pounds in 1929, with 120,724.853
Prices of Typical Crudes per Barrel at Wells.
pounds in 1928, with 152,980,476 pounds in 1927, and with 129,437,691
(All gravities where A. P. I. degrees are not shown.)
pounds in 1926.
80.68
Bradford,
$1.35 Eldorado, Ark., 40
Pa
Import and export figures for December not yet available.
.68
Corning, Pa
.80 Rusk, Texas, 40 and over
Illinois
.80 Salt Creek, Wyo.. 40 and over-- .85
.60
Western Kentucky
.60 Herat Creek
Gas Utility Revenues Off in November 1931.
1.05
Midcontinent, Okla., 40 and above- .85 Sunburst, Mont
Hutchinson, Texas, 40 and over-__ .66 Santa Fe Springs, Calif., 40 and
Revenues of manufactured and natural gas utilities aggre- SPindletop,
.75
Texas, 40 and over__ .66
over
.72
Winkler, Texas
.71 Huntington, Calif., 26
gated $52,909,372 in November, a decline of 8.4% from the Smackover.
1.75
Ark., 24 and over-----55 Petrolia, Canada
same month of the preceding year, according to reports to
the American Gas Association from companies representing
nearly 90% of the utility distribution of manufactured and
natural gas. The Association states:
The manufactured gas companies reported revenues of $31,158,738 for
November, a drop of 4% from a year ago, while revenues of the natural
gas concerns totaled $21,750,634, or approximately 14% less than for
November 1930.
Sales of manufactured gas reported for November totaled 28,361,647,000
cubic feet, a decline of 6.4%, while natural gas sales for the month were
54,953,333,000 cubic feet, a drop of nearly 10%. Natural gas sales for
Industrial purposes declined from 18,466,767,000 cubic feet in November
1930 to 16,822,902,000 cubic feet in November 1931, a drop of approximately 9%.
A factor contributing materially to the decline in both manufactured
and natural gas sales was the abnormally high temperatures which characterized all sections of the country excepting the Pacific Coast during
November. This is strikingly indicated by the fact that in the East
North Central States, comprising Illinois, Indiana, Michigan, Ohio, and
Wisconsin, sales of gas for househeating purposes were down nearly
40%
for the month, despite a gain of some 2% over the preceding year in the
number of househeating customers. Somewhat the same trend was
manifest in New England, where househeating sales declined nearly
20%,
although the number of customers using gas for this purpose was
6%
above the preceding year.
Petroleum and Its Products-Conservation Policy
Guiding Industry Into Firm Position for Opening
of Heavy Consumption Season-Spring Price
Advances Anticipated.
With consumption of refined products being maintained
at an unusually high level due to the open winter being
experienced in many sections of the country, and with continued curtailment of crude production in many of the larger
producing areas, the petroleum industry's leaders feel that
they will enter this year's heavy consumption season in a
position comparatively much stronger than for several
years past. As a result it is anticipated that crude prices
will show an active upward movement during the latter part
of February and through March.
Sentiment among directors of the American Petroleum
Institute reflects the generally improved status of the
industry, statements issued at the close of a meeting held
this week disclosed. Amos L. Beaty, Institute President,
who warned against "over-optimism" a short time ago, states
now that several "favorable factors" have developed which
change the entire outlook. He adds that "the most depressing influence at this time is the uncertainty of the East
Texas situation. The trade is uncertain that curtailment
and proration will continue. It is generally believed that
REFINED PRODUCTS-TANK CAR GASOLINE PRICES HERE
RETURN TO 6%-CENT LEVEL-FURNACE OILS STRONGERKEROSENE FIRMER WITH 13-CENT PRICE RESUMED IN
OHIO.
Marketers in the New York area made swift price adjustments this week. Monday and Tuesday saw a %e.
markdown in posted prices of U. S. Motor tank car gasoline,
and Wednesday brought the first move of the return to the
former 6Mc. per gallon level.
Last week the Standard Oil Co. of New York cut tank car
prices %c. to the new 6e. level. This company's move was
followed immediately by Standard of New Jersey. On
Monday and Tuesday of this week the reduction was met
by Colonial Beacon Oil Co., the Texas Co. and Gulf Refining Co. On Wednesday Standard of New York reinstated the 63c. price posting, followed by Sun Oil Co.
and others who had met the reduction, with the exception
of Standard of New Jersey, which holds to the 6e. level.
A sudden reversal of conditions among distributors led
to the quick price adjustment, it is declared. Whereas a
week ago it was generally believed that price-cutting a,ctivities had disrupted the general market, it developed that
sales volume at cut prices had been overestimated and that
the market as a whole was in a firm position and that conditions did not warrant tile %c. reduction.
Standard Oil Co. of Ohio also withdrew a 1%c. cut in
kerosene service station prices, announced last week, and
the price was returned to its previous 13e. level on Jan. 21.
However, the same company made a further reduction in
gasoline prices in Hamilton County, which includes Cincinnati. Here Ethyl is now 18c. service station; X70 is 15c.,
and Renown Green is 13c.
The Chicago market continues strong, with U. S. Motor
now being quoted from 3c. to 33/se. a gallon. Although
buying is on a "spot needs" basis, current consumption
continues heavy enough to keep the price scale well sustained.
Price cutting has been renewed in San Francisco and Los
Angeles, with independents selling from 2e. to 3e. below the
163/Ic. level maintained by the larger companies. It is
reported that the major companies may adopt their practice
of last year and meet these price cuts as they occur.
Kerosene sales are well maintained, with the price structure
here firm at 6e. per gallon, bulk, at refineries, for 41-43
water white. Furnace oils are moving in good seasonal
88
FINANCIAL CHRONICLE
[VOL. 134.
volume. Bunker fuel oil is quiet and steady at 60c. a barrel,
refinery, and Diesel unchanged at $1.30 a barrel, same
basis.
Price changes of the week follow:
heavy oil, was 1,317,400 barrels, as compared with 1,355.000 barrels, a
decrease of 37,600 barrels.
The production figures of certain pools in the various districts for the
current week, compared with the previous week, in barrels of 42 gallons,
follow:
Jan. 18.-Colonial Beacon Oil Co. reduces tank car gasoline prices
Mc. per gallon to 6c.
Jan. 18.-Texas Co.reduces tank car gasoline prices Mc.per gallon to 6c.
Jan. 19.-Gulf Refining Co. reduces tank car gasoline prices
C. to
,6c. Per gallon.
Jan. 20.-Standard Oil Co. of New York advances tank car gasoline
prices Mc. to 63c. at New York; 63c. at Providence and Boston; 7c. at
Portland, Me. In northern Maine tank wagon and service station prices
were reduced lc.; tank wagon and service station prices in Massachusetts,
Rhode Island, southern New Hampshire and southern Maine were advanced lc. per gallon.
Jan. 20.-Sun Oil Co. advances tank wagon and service station prices
IC. per gallon in Massachusetts, Rhode Island, southern New Hampshire
and southern Maine.
Jan. 2I.-Texas Co. advances tank car gasoline prices Mc. per gallon
to 6Mc.
Jan. 21.-Colonial Beacon Oil Co. advances tank car gasoline price
Mc.to 6e.
Jan. 21.-Gulf Refining Co. advances tank car gasoline Mc. per gallon
to 6Mc.
Jan. 21.-Standard Oil Co. of Ohio advances kerosene prices throughout
its territory 13c. a gallon, making new service station price 13c., tank
wagon prices unchanged.
Jan. 22.-Standard Oil Co. of Ohio reduces gasoline prices lc. a gallon
In Hamilton County, including Cincinnati. New prices are 18c. for
Ethyl; 15c. for X70, and 13c. for Renown Green.
-Week Ended-OklahomaJan.16. Jan. 9.
Bowlegs
13,300 11,450
Bristow-8llck
11,750 11,850
Burbank
11,700 11,750
Carr City
17,900 17,500
Earlsboro
14,350 12,450
East Earlaboro
14,100 11,900
South Earbsboro
4,100 5,050
Konawa
5,150 6,350
Little River
17,450 16,550
East Little River
2,050 1,850
Maud
1,950 2,100
Mission
7,750 6,750
Oklahoma City
104,000 144,650
St. Louis
18,050 19.950
Searight
3.650 3,550
Seminole
12,000 12,950
East Seminole
1,300 1,000
KansasRitz
12,300 12,800
Sedgwlok County
15,150 16,100
Voshell
10,100 10,500
Panhandle TexasGray County
30,400 32,500
Hutchinson County
11,600 12,900
North TexasArcher C011lity
11,100 11,150
North Young County
6,150 6,350
Wilbarger County
10,000 10,000
West Central TexasSouth Young County...... 4,000 3,700
West Texas-Crane and Upton Cos-- 19,600 19,500
Ector County
5,4QQ 5,500
Howard County
22,500 22,400
Reagan County
28.250 23,700
Winkler County
32,000 32,100
Yates
56,750
Balance Pecos County
1,800 1,800
East Central TexasVan Zandt County
44,650 44,800
East TexasRusk County-Joiner-108,650 110,800
Kilgore
112,100 108,100
Gregg Co.-Longview-112,350 110,600
Gasoline, U. S. Motor, Tank Car Lots, F.O.B. Refinery.
New Orleans,ex.3.05-.053(
New YorkN. Y.(Bayonne)
04-.04M
Colonial-Beacon.$0.0634
Stand.011, N.J_30.06
05-.07
Crew Levick--- .06M California
Stand. Oil, N.Y. 0.0634
z Texas
TideWaterOliCo .08
.0634 Los Angeles, ex_ .044-.07
.05-.05M
.06M Gulf Ports
Gull
Riohrield011(Cal) .0834
Tulsa
.06
Continental
Warner-Quin. Co .0634
Pemasylvanta
.0534
Republic Oil-- .06
Pan-Am.Pet.Co. .0834
3.0334-.04
Shell Eastern Pet .0634 Chicago
z "Texaco" la .07.
Gasoline. Service Station, Tax Included.
5.149
$ 15 Kansas City
$ 143 Cincinnati
New York
.162
16 Minneapolis
195 Cleveland
Atlanta
118
159 Deny's,'
19 New Orleans
Baltimore
11
131 Philadelphia
17 Detroit
Boetoa.
17
13 San Pranclaco
148 Houston
Buffalo
129
19 St. LouiS
15 Jacksonville
Chicago
Kerosene. 41-43 Water White, Tank Car Lots, F.O.B. Refinery.
$.0254-.0334 New Orleans, ex_30.0314
Chicago
N.Y.(Bayonne) 3.06
Tulsa
LosAng..ex .0434-.06
.0434-.0334
North Texas--- .03
Fuel Oil, F.O.B. Refinery or Terminal.
Gulf Coast "C".--$.55-.65
California 27 plus D
W. Y.(Bayonne)5.60
3.75-1.00 Chicago 18-22 D_ .4234-.5O
Bunker "Cr
Diesel 28-30 D.
- 1.30 New Orleans "C"... .55
Gas Oil, F.O.B. Refinery or Terminal.
N. Y.(Bayonne)I ChicagoTulsa28 D plus----$.03M-.041 32-36 D Ind-3.0134-.02 I 32-36 D
I
Net Crude Oil Stock Changes for December 1931.
Pipe line and tank farm net domestic crude oil stocks
east of the Rocky Mountains decreased 556,000 barrels in the
month of December 1931, according to returns compiled by
the American Petroleum Institute from reports made to it
by representative companies. The net change shown by the
reporting companies accounts for the increases and decreases
in general crude oil stocks, including crude oil in transit,
but not producers' stocks at the wells.
Crude Oil Output in United States Declines.
The American Petroleum Institute estimates that the daily
average gross crude oil production in the United States for
the week ended Jan. 16 1932, was 2,193,450 barrels, as compared with 2,234,200 barrels for the preceding week, a decrease of 40,750 barrels. Compared with the Output for
the week ended Jan. 17 1931 of 2,094,000 barrels daily, the
current figure represents an increase of 99,450 barrels per
day. The daily average production east of California for
the week ended Jan. 16 1932 was 1,684,450 barrels, as compared with 1,728,600 barrels for the preceding week, a
decrease of 44,150 barrels. The following are estimates of
daily average gross production, by districts:
Southwest TexasChapmann-Abbot
Darst Creek
Luling
Salt Flat
North LouisianaSarepta-Carterville
Zwolle
ArkansasSmackover, light
Smackover,heavy
Coastal TexasBarbers Hill
Raccoon Bend
Refugia County
Sugarland
Coastal LouisianaEast Hackberry
Old Hackberry
WyomingSalt Creek
MontanaKevin-Sunburst
New MexicoHobbs High
Balance Lea County
CaliforniaElwood-Goleta
Huntington Beach
Inglewood
Kettleman Hills
Long Beach
Midway-Sunset
Playa Del Ray
Santa Fe Springs
Seal Beach
Ventura Avenue
-Week EndedJan.16. Jan. 9.
1,700 1,750
16.250 14,800
7,450 7,300
8,250 8,250
800
6,750
800
6,300
3,000 3,000
23,400 23,450
18,800 18,000
4.800 4,600
12,950 13,450
9,450 9.700
3,300
600
4,400
600
21,350 23,550
3,350
3,350
32,250 30,150
3,950 3.900
16.500
23,000
13,900
61,000
79,000
49,800
21,000
66,300
13,100
40,600
Pennsylvania GradeAllegany
Bradford
Kane to Butler
Southeastern Ohio
Southwestern Penna.West Virginia
16,400
20,500
13,800
61,800
78,000
49,100
22,0(10
63,900
13,100
41,700
8,050 7,750
26,700 30,950
6,650 6,550
5,400 6,150
3,250 2,850
13,100 12,500
Bulk Terminal Stocks of Gasoline and Gasoline in
•
Transit.
The American Petroleum Institute below presents the
amount of gasoline held by refining companies in bulk
terminals and in transit thereto, by Bureau of Mines' refining districts, east of California. The Institute's statement
reports as follows:
It should be borne definitely in mind that comparable quantities of
gasoline have always existed at similar locations as an integral part of the
system of distribution necessary to deliver gasoline from the points of
manufacture to the ultimate consumer. While it might appear to some
that these quantities represent newly found stocks of this product, the
industry itself and those closely connected with it have always generally
known of their existence. The report for the week ended Aug. 22 1931
was the first time that definite statistics had ever been presented covering
the amount of such stocks. The publication of this information is in
line with the Institute's policy to collect, and publish in the aggregate,
statistical information of interest and value to the petroleum industry.
For the purpose of these statistics, which will be issued each week, a
bulk terminal is any installation, the primary function of which is to supply
other smaller installations by tank cars, barges, pipe lines or the longer
haul tank trucks. The smaller installations referred to, the stocks of
which are not included, are those whose primary function is to supply
the local retail trade.
Up to Aug. 22 1931 statistics covering stocks of gasoline east of California reflected stocks held at refineries only, while for the past several years
California gasoline stocks figures have included, and will continue to
include, the total inventory of finished gasoline and engine distillate held
by reporting companies wherever located within continental United States.
that is, at refineries, water terminals and all sales distributing stations
Including amounts in transit thereto.
Gasoline at "Bulk Terminals."
Figures End of Week.
Gasoline "in Traruit."
Figures End of Week.
Metric
Jan. 16
1932.
Jan. 9
1932.
Jan. 17
1931.
Jan. 16
1932.
Jan. 9
1932.
Jan. 17
1931.
East Coast
7.188,000 7,217,000 7,468,000 1,579,000 1,469,000 1,770,000
Appalachian
330,000
319,000
381,000
Ind.. Ill., Ky
2,751,000 2,874,000 1,737.000
6,000
Okla., Kans., Mo. 691,000
626,000
Texas
176,000
207,000
154.000
20,000
Loutelana-Arkans _
419,000
393,000
445,000 139,000
10,000 121,000
Rooky Mountain
DAILY AVERAGE PRODUCTION (FIGURES IN BARRELS).
Jan. 16 '32. Jan. 9'32. Jan. 2'32. Jan. 1731. Total east of Calif_ 11,555,000 11,636,000 10,185,000 1,718,000 1,485,000 1,911,000
Weeks Ended-493.300
441,150
481,650
441,550
Oklahoma
103,150
107,550 Texas Gulf
101,150
99,200
Kansas
146,000
179,000
125.000
20.000
57,450 L0111818118 Gulf
49,800
52,450
49,200
Panhandle Texas
363.000
359,000
420,000 127,000
121,000
60,350
50,050
49,750
49,450
North Texas
24,150
25,300
24,250
25,600
West Central Texas
246,650
172,950
172,850
West Texas
175,250
40,400
50,950
51,600
East Central Texas
51,150
2,750
290,900
329,500
East Texas
333,100
Weekly Refinery Statistics for the United States.
52,100
78,850
Southwest Texas
53,350
51,800
40,550
27,800
North Louisiana
29,200
28,700
compiled by the American Petroleum Institute
Reports
Arkansas
33,700
51,000
34,250
34,250
Coastal Texas
114,700
163,000 for the week ended Jan. 16 1932 from companies aggre112,650
111,350
Coastal Louisiana
29,850
29,150
26.350
27,900
Eastern (not including Mich.)._
99,500 gating 3,665,600 barrels, or 95.2% of thd 3,852,000 barrel
110.750
107,950
107,400
17,100
9,650
Michigan
14,700
15,950
potential refining capacity of the United
Wyoming
37,350
34,550
38,450
43,750 estimated daily
Montana
7,100 States, indicate that 2,124,900 barrels of crude oil were
5,700
6,500
6,100
Colorado
3,550
3,850
4,100
3,600
New Mexico
38.500
36,300
43,250
43,150 run to stills daily, and that these same companies had in
509,000
California
505,600
499.700
542,400
2,193.450 2.234,200 2,209,100 2,094,000
Total
The estimated daily average gross production for the Mid-Continent
field. including Oklahoma, Kansas. Panhandle, North, West Central,
West, East Central, East and Southwest Texas, North Louisiana and
Arkansas. for the week ended Jan. 16 1932 was 1,340,800 barrels, as compared with 1,378,450 barrels for the preceding week, a decrease of 37,650
barrels. The Mid-Continent production, excluding Smackover (Arkansas)
storage at refineries at the end of the week 39,853,000
barrels of gasoline, and 130,330,000 barrels of gas and
fuel oil. Reports received on the production of gasoline
by the cracking process indicate that companies owning
95.6% of the potential charging capacity of all cracking
units, manufactured 3,034,000 barrels of cracked gasoline
JAR. 23 1932.]
FINANCIAL CilitONICLE
during the week. The complete report for the week ended
Jan. 16 1932 follows:
CRUDE RUNS TO STILLS, GASOLINE STOCKS AND GAS AND FUEL OIL
STOCKS, WEEK ENDED JAN. 16 1932.
(Figures in Barrels of 42 Gallons Each.)
District.
Per Cent
Potential
Capacity
Reporting.
East Coast
100.0
Appalachian
91.8
Ind., Illinois, Kentucky 98.9
Okla., Kans., Missouri. 89.6
Texas
91.3
Louisiana-Arkansas_ _ _ 98.9
Rocky Mountain
89.4
California
97.1
Total week Jan. 16_
Daily average
Total week Jan. 9
Daily average
95.2
95.2
Crude
Runs to
Stills.
Per Cent
Oyer.
of Total
Capacity
Report.
2,869,000
591,000
1,851,000
1,648.000
3,560,000
1,025,000
302,000
3,028,000
64.7
61.4
61.3
54.1
66.4
63.5
30.0
48.7
4,937,000
1,418,000
4,789,000
3,309,000
8,509,000
1,261,000
1,854,000
*13,776,000
14,874,000
2,124,900
15.159,000
2,165,600
58.0
39,853,000
130,330,000
59.1
39,106,000
131,579,000
Gasoline
Stooks. a
Gas and
Fuel Oil
Stocks.
7,684,000
1,450,000
5,235,000
3,960,000
10,946,000
4,189,000
748,000
96,118,000
Total Jan. 17 1931____ 95.7
15,528,000
62.1 b39,171,000 133,728,000
Daily average
2,218,300
c Texas Gulf Coast__.._ 99.8
2,825,000
75.9
6.754,000
8,204,000
c Louisiana Gulf Coast_ 100.0
665,000
64.4
1,137,000
3,306,000
a In all the refining districts indicated except California, figures
in
column
this
represent gasoline stocks at refineries. In *California they represent
the total inventory of finished gasoline and engine distillate
by reporting companies
wherever located within continental U.S.-(stocksheld
at refineries, water terminals
and all sales distributing stations, including products in transit
In Indiana-Illinois district, due to transfer to "bulk terminals"thereto). b Revised
of stocks previously
reported as"at refineries." c Included above in table for week ended
Jan. 16 1932.
Note.-All figures follow exactly the present Bureau of Mines'
definitions. Crude
oil runs to atlas include both foreign and domestic crude. In California
stocks of
heavy crude and all grades of fuel oil are included under the
heading "gas and
fuel oil stocks."
New Low Ebb in Non-Ferrous Metals Market-Copper
Business Small.
The unsettled status of the political and financial situation
has been communicated to the metal markets, with the
result that demand in the third week of the new year reached
a new low ebb,"Metal & Mineral Markets" reports, adding:
Not even the dispatch with which Congress has pushed through the
plans
for the Restruction Finance Corp. has inspired metal consumers
with any
desire to purchase additional supplies. Copper is being offered
in several
directions at 734c. a pound, delivered Connecticut, although
the majority
of the producers' as well as the exporters' price remains on
the 7lic. basis.
Lead is steady at 3.75c. a pound New York, although
demand has fallen
off. Zinc has declined to 3c. a pound. Tin demand
has been fair with
little fluctuation In the price. Silver weakened early
in the week but is now
held at 29%c. an ounce.
The domestic market for copper has been extremely
dull all week. Although the majority of producers adhere firmly
to the quotation of nic.
a pound, delivered Connecticut, an ambitious
buyer could have picked
up a fair tonnage at 734c. a pound from several
sellers. In many quarters,
the feeling is growing that domestic users
of copper have covered their
requirements for the first half of the year and
that they are not likely to
come into the market for any large volume of
copper at present. This
feeling, of course, is largely based on
present rates of consumption. Any
general improvement in credit or business would
be immediately reflected
in renewed interest in copper.
Trade authorities estimate that December copper
shipments to domestic
consumers were less than 30,000 tons. Apparentl
y, January shipments
will not be much, if any, higher. With the
construction and utility industries virtually at a standstill, so far as
expansion is concerned, because
of the credit stringency, increases in
consumption from these two major
copper consumers are hardly to be expected.
The one bright spot is the
automobile industry, which may exceed
the 1931 output this year.
Copper Exporters, Inc., continues to quote
7.625c. a pound, c.i.f. usual
European ports. Business has been
very small, however, during the
current market week. The exporters
organization appears to be satisfied
for the present with the differential of 121i
points over the Connecticut
delivered price, although there may be later
alterations. A reduction in
ocean freight rates to $4.25 per long
ton from Atlantic seaboard points
to usual European ports through 1932 may help
to maintain the lowered
differential. Apparently the new marketing
plan is working
smoothly.
Steel Operations and Orders Increase
-Output at
28% of Capacity-Prices Weaker.
Improvement in steel business is more in the
promise than
in the performance, reports the "Iron Age" of
Jan. 21.
However, ingot output has increased to an average
of 28%
the
entire
for
country, compared with a little above
25%
last week, and there has been a more generous flow
of small
orders, particularly at Pittsburgh and Chicago,
both for
replenishment of depleted stocks and for immedia
te consumption. The "Age" further goes on to say:
Delays in certain developments are at least in part
responsible for the
slowness of steel to reflect the usual seasonal influences.
The automobile
industry is to some extent marking time pending the final
disclosure of the
new Ford model; the release of some expected railroad buying is undoubted
ly
held back by the prolonged negotiations over railroad wage
reductions,
and a good deal of public construction work that has been authorize
d is
in abeyance because of financing difficulties. Tin plate contracts expected
from two large can companies have been postponed until after the canners'
convention last week.
Such gains In orders and operations as have occurred are in
the main
due to the automobile industry, notwithstanding that it is expanding
its
schedules slowly and cautiously, and to the requirements of
miscellaneous
consumers. Building construction and the railroads are
playing a very
small part in current releases.
Business is spotty as regards products and districts. The
best operations are at Birmingham, where the rate is above 50%, and in the
Youngstown area, which has an average schedule above 35%. In both
instances
increased activity of subsidiaries of the United States Steel
Corp. has
brought up the district averages. The Pittsburgh and Chicago
districts
are both 25%. Cleveland is at 35% and Wheeling at 40%•
589
Bar and sheet mills are doing relatively better than other finishing departments. A Chicago bar unit is operating at 50%, while sheet mills in
the central district have stepped up output to an average of 30%. Bars
and sheets, being the most widely used products, are usually the first to
respond to general business improvement. A large independent company
who capacity is dominated by structural shapes, plates and rails has had
little gain in its orders this month. Some companies report increases in
bookings of 10 to 15% over the corresponding period of December.
Included in pending business of outstanding size is 35,000 tons of 20-inch'
pipe for a pipe line, on which a New York engineering firm is taking bids.
A pipe lino from Montana to Minnesota is also in prospect. The Erie RR.
Is distributing its orders for 31,377 tons of rails, of which Steel Corporation.
mills will receive more than 25,000 tons. The New York Central tall+
inquiry probably will be for not more than 100,000 tons, as part of its last
purchase of 175,000 tons is still unused.
Until the Ford Motor Co. releases volume orders for production of itsnew model, there appears to be no likelihood of any important increase.
no buying of steel by the automobile industry. The Ford orders may not
come before February. This month's automobile output is estimated at.
140,000 units, against 120,000 in December, a small gain for this time of'
year, and the February schedules are uncertain pending the consummation
of the Ford plans and the outcome of sales drives at current automobile
shows.
The price situation continues to be of major concern to steel companies,
particularly makers of sheets. No. 24 hot-rolled annealed sheets are now
generally available to large buyers at 2.15c., Pittsburgh, and some other
grades are quotably lower or very weak. Some effort to strengthen prices
may be expected, though it is clearly recognized by the steel trade that
such a move is difficult when volume demand is lacking. On the other
hand, experience has shown that declining prices discourage buying. Pittsburgh and Youngstown mills are trying to re-establish a 1.60c. a lb. Pittsburgh price on bars, and this figure is being quoted to small buyers not
covered by contracts. Most of the larger buyers are protected through
the quarter at 1.50c.
Following the recent $1 reduction on Alabama pig iron for shipment to
the North, the Birmingham producers have lowered the price to consumers
In that district in like amount.
More activity In the purchase of heavy melting steel by Chicago district
mills has had the opposite of the usual effect, having reduced prices instead
of strengthening them. A 50c. decline in this grade at Chicago brings the
"Iron Age" scrap composite price down to $8.33. The finished steel composite price is lower at 2.037c. a lb., only 78c. a ton above the low point
of the 1921-1922 depression. The pig iron composite is unchanged at
$14.65. A comparative table follows:
Finished Steel.
B
Based on steel bars, beams, tank plates,
9 1932, 2.037c. a Lb.
.
ag10
One weejak9
2.052c. wire, rails, black pipe and sheets.
One month ago
2.095c. These products make 87% of the
One year ago
2.142c. United States output.
High.
Low.
1932
2.052c. Jan. 5
2.037e. Jan. 11,
1931
2.142c. Jan. 13
2.052c. Dec. 29,
1930
2.362c. Jan. 7
2.121c. Dec. 5
1929
2.412c. Apr. 2
2.362c. Oct. 25.
1928
2.391e. Dec. 11
2.3140. Jan. 3
1927
2.453c. Jan. 4
2.2930. Oct. 251928
2.4530. Jan. 5
2.4030. May 18
1925
2.5600. Jan. 8
2.3980. Aug. 18,
Pie Iron.
Jan. 19 1932, $14.65 a Gross Ton.
Based on average of basic iron at Valley
One week ago
$14.65 furnace and foundry irons at Chicago:.
One month ago
14.791 Philadelphia, Buffalo, Valley and Bio.
One year ago
15.901 mingham.
High.
Low.
1169
9
92303
32
91
$14.79 Jan. 5
814.65 Jan. 12
15.90 Jan. 6
14.79 Dec. 15
18.21 Jan. 7
15.90 Dee. 16
18,71 May 14
18.21 Deo. 17
1928
18.59 Nov.27
17.04 July 24
19.71 Jan. 4
17.54 Nov. 1
11992267
21.54 Jan. 5
19.46 July 13
1925
Jan. 13
18.96 July 7
Steel Scrap.
Jan. 19 1932, $8.33 a Gross Ton.
Based on heavy melting steel quotaOne weekago$
18
1.
.33
50 dons at Pittsburgh. Philadelphia
and
One month ago
cage.
One year ago
1932
1931
1930
1929
1928
1927
1926
1925
High.
$8.50 Jan. 12
11.33 Jan. 6
15.00 Feb. 18
17.58 Jan. 29
16.50 Dec. 31
15.25 Jan. 11
17.25 Jan. 5
20.83 Jan. 13
Low.
$8.33 Jan. 19
8.50 Dec. 29
11.25 Dec. 9
14.08 Dec. 3
13.08 July 2
13.08 Nov. 22
14.00 June 1
15.08 May 2
Steel demand is more definitely on the upgrade, stimulated moderately by reviving confidence and the closer
approach of seasonal influence, reports "Steel," of Cleveland, on Jan. 18. None of the major consuming
groups
exhibits a marked tendency toward improvement,
but
practically all are contributing in larger measure to the
volume of steel orders. This has led to the secondrising
conservative increase in steelworks operations, the rate
advancing one point to 26% in the past week, with prospect
s
further slight gain this week, adds "Steel," which for a
further
states:
Encouraged by the outlook, steelmakers are
building up resistance to •
Pressure against prices, a determined effort
being made to put heavy
finished steel on a more remunerative basis.
Leading
producers are endeavoring to stabilize plates, shapes and
bars at 1.60c.,
Pittsburgh, for
ordinary buyers, with quotations at Cleveland
. Chicago and
a commensurate basis. In sheets
Birmingham on
and strip, however, price wesimess
persists, due mainly to competition for
the more atractive offers
from the
automotive industry. In raw materials,
prices appear a little
except scrap, larger buying having
steadier,
developed lower levels.
Steelmakers consider as a practical
certainty a much larger
orders from railroads as revenue
inflow of
increases from recent freight
and the anticipated wage adjustmen
t. Railroad rolling stock advance,,
in the worst condition since the
is reported
1922 shop strike: rail
buying in the past
two years was the lowest in 25
years; bad-order cars are
the highest on
record. New York Central's rail
inquiry, out soon, probably
less than the 170,000 tons purchased
will be for
last year. The Erie
has purchased
31,377 tons. Northern Pacific has
bought 150 hopper cars,
and Western
Fruit Express is expected to place
300 underframes shortly.
In the automotive industry no
important plant is down,
a month ago when many were
in contrast with
closed entirely. Chevrolet
is leading,
with,
590
[VOL. 134.
FINANCIAL CII RONICLE
386.701.000 net tons
351,787,000 net tons' 1928-29
9,000 units a week, Ford making 1.600 on the revised 4-cylinder models, 1930-31
362,798,000 net tons
1929-30
403,858,000 net tons! 1927-28
designated as "B" in sheet and strip orders. In numerous miscellaneous
total production of
As
tho
already Indicated by the revised figures above,
lines the trend is for the better: Demand for bolts, nuts and rivets at
Pittsburgh is heavier; reinforcing steel for roadbuilding is more active; soft coal for the country as a whole during the week ended Jan. 2 is estiferroalloy shipments are up; a net gain of three active blast furnaces is mated at 6,050,000 net tons, in comparison with 5,331,000 tons during
noted since Jan. 1. General Motors' recent order for 10,000 tons of pig Christmas week. New /ear's Day is a holiday in most bituminous fields.
Iron Is influencing smaller consumers to cover, lake furnace sales being the The following table shows the source of the tonnage, by States, and gives
largest since last fall. Substantial contracts for tin plate have been placed comparable figures for other recent years:
by Standard of New Jersey and Continental Oil; and the American Can
Estimated Weekly Production of Coal by States (Net Tons).
CO. Is about to close on a large order. The Shell 011 Co. has placed 40,000
Week Ended
Statetons with South Wales mills.
3
.s
l
ge
.
ana
oer
Jan. 2'32. Dec.26'31. Jan. 3'31. Jan.4'30. Aj
Shipments are being completed on a number of steel contracts which Alabama
434,000
142,000
388,000
169,000
257,000
30.000
41,000
34,000
20,000
27,000
were not fully specified by the close of 1932. It is understood that if the Arkansas
Colorado
226,000
205,000
125,000
197,000
116,000
United States Steel Corp. had not wiped off its books on Dec. 31 tonnage Illinois
756,000 1,129,000 1,165,000 2,111,000
890,000
which had been carried along for some time with little prospect of being Indiana
659,000
314,000
232,000
406,000
238,000
140,000
58,000
85,000
75,000
84,000
specified, its unfilled orders would have increased, instead of decreasing Iowa
Kansas
103,000
59,000
65,000
61.000
60.000
198,538 tons to the lowest point since December 1910.
Kentucky-Eastern
607,000
942,000
444,000
686,000
347.000
Structural awards for the week, amounting to 20,000 tons, and reinforcing
Western
240,000
222,000
133,000
294,000
173,000
week.
preceding
Maryland
bar orders. 6,000 tons, represent good advances from the
55,000
41,000
27,000
49,000
34,000
32.000
15,000
16,000
11,000
9,000
Pipe projects this year are expected to provide considerable tonnage; an Michigan
87,000
93,000
78,000
75,000
64,000
inquiry is current for 35,000 tons of 20-inch steel pipe for a 200-mile line. Missouri
Montana
82,000
55.000
43,000
57,000
47,000
Washington has purchased 4,500 tons of cast iron pipe; Minneapolis is New Mexico
73,000
46,000
35,000
31,000
30,000
North Dakota
50,000
43,000
39,000
taking bids on 2,700 tons; Cincinnati, on 2,000 tons.
35,000
29.000
Ohio
814,000
finished
421,000
283,000
466.000
"Steel's"
313,000
bars,
and
shapes
plates,
Reflecting the stronger tone in
Oklahoma
63,000
35.000
54,000
28,000
85,000
steel composite is up 60 cents to $47.62, and the iron and steel composite Pennsylvania (bitum.)
1,435,000 1,321,000 2,085,000 2.521,000 3,402,000
is up 12 cents to $30.08. These are the first advances in these composites Tennessee
133,000
108,000
55,000
114,000
65,000
Texas
26,000
13,000
8,000
7,000
9.000
since last July. The scrap composite is down eight cents, to 88.04.
Utah
109,000
115,000
151,000
92,000
83.000
Virginia
211,000
121,000
262,000
162,000
219.000
Washington
74,000
40,000
33,000
48.000
Bituminous Coal and Pennsylvania Anthracite Output W. Va.-Southern_b__ 1,043,000 904,000 1,433,000 1,953,000 1,134,000
Northern_c
532,000
762.000
324,000
673,000
362,000
Continues Below Rate a Year Ago.
Wyoming
186,000
85,000
126,000
126,000
78,000
10,000
7,000
4,000
2,000
4,000
of Mines, Depart- Other States
According to the United States Bureau
ment of Commerce, production of bituminous coal during
the week ended Jan. 9 1932 amounted to 6,930,000 net tons
as compared with 6,050,000 tons in the preceding week and
9,184,000 tons in the corresponding period last year. Pennsylvania anthracite output totalled 1,147,000 net tons as
against 1,465,000 tons during the week ended Jan. 10 1931
and 974,000 tons during the week ended Jan. 2 1932.
During the coal year to Jan. 9 1932 production of bituminous coal amounted to 282,505,000 net tons as compared
with 351,787,000 tons during the coal year to Jan. 10 1932.
The Bureau's statement reports as follows:
BITUMINOUS COAL.
The total production of soft coal (including lignite and coal coked at the
mines) during the first full week in 1932 is estimated at 6,930,000 net tons.
Although this figure does not reach the pre-holiday level, the average daily
rate of output is approximately 1.1% higher than that for the week of
Jan. 2.-Production during the week in 1931 corresponding with that of
Jan. 9 amounted to 9,184,000 tons.
Estimated United States Production of Bituminous Coal(Nei Tons).
1931-1932--------1930-1931
Coal Year
Coal Year
to Date.
Week.
to Date.a
Week.
Week Ended5,331.000
334,169,000
6,980,000
269,525,000
Dee. 26
1,066,000
1,473.000
1,187,000
1,396,000
Daily average
6 050,000
342,603,000
8,434,000
275,575,000
Jan. 2_13
1,142,000
1,476,000
1,591,000
1,186,000
Daily average
6,930,000
351.787.000
282,505,000
9,184,000
Jan. 9.c
1,155,000
1,477,000
1,185,000
1,531,000
Daily average
a Minus one day's production first week in April to equalize number of days in the
days.
5.3
upon
last
since
Revised
b
report.
years.
based
Daily
average
two
C Subject to revision.
The total production of soft coal during the present coal year to Jan. 9
1932 (approximately 238 working days) amounts to 282,505,000 net tons.
Figures for corresponding periods in other recent coal years are given below:
Total bituminous coal__ 6,050,000 5,331,000 8.434.000 10,267,000 11,850,000
705,000 1,097,000 1,327,000 1,968,000
Pennsylvania anthracite__ 974.000
Total all coal
7,024,000 6,038,000 9,531,000 11,594,000 13,818,000
a Average weekly rate for the entire month. b Includes °Aerations on the
N.& W. C.& O. Virginian K.& M., and B. C.& G. c Rest of State. Including
Panhandle,
PENNSYLVANIA ANTHRACITE.
The total production of anthracite in Pennsylvania during the week ended
Jan. 9 1932 is estimated at 1,147,000 net tons. This is an increase of
173,000 tons over the output in the preceding week, when working time was
curtailed by the New Year's Day holiday. The average daily rate, however, was less than in the holiday week-191,200 tons as against 194,800
tons.
Estimated Production of Pennsylvania Anthracite (Net Tons).
------1930-31
------1931-32------Daily
Daily
Average.
Week.
Average.
Week.
Week Ended193,000
965.000
141,000
705,000
Dec. 26 1931
219,400
1,097,000
194,800
974,000
Jan. 2 1932.2
244,200
1,465,000
1,147,000
191,200
Jan. 9 1932_b
a Revised since last report. b Subject to revision.
BEEHIVE COKE.
The total production of beehive coke during the week ended Jan. 9 1932
is estimated at 22,500 net tons in comparison with 19,500 tons in the preceding week. The following table apportions the tonnage by regions:
Estimated Weekly Production of Beehive Coke (Net Tons).
1931
1932
Week Endedto
to
Jan. 2 Jan. 10
Jan. 9
Dates
Date.
1931.
1932.
193233
Region34,000
24,100
25,100
16,100
18,700
Pennsylvania
4.900
1,700
3,800
1,300
1,300
West Virginia
4,700
2,000
3,300
1,300
1,500
Tennessee and Virginia
2,000
1,200
1,500
800
Colorado, Utah and Washington 1,000
45,600
29,000
33,700
19,500
22,500
United States total
5,700
3,625
3,750
5,017
3,250
Daily average
a Minus One day's production first week in January to equalize number of day
Subject
b
revision.
to
years.
two
the
in
Current Events and Discussions
The Week with the Federal Resprve Banks.
The daily average volume of Federal Reserve Bank credit
outstanding during the week ending Jan. 20, as reported
by the Federal Reserve banks, was $1,838,000,000, a decline
of $49,000,000 compared with the preceding week and an
increase of $774,000,000 compared with the corresponding
week in 1931. After noting these facts, the Federal Reserve
Board proceeds as follows:
a
On Jan. 20 total Reserve Bank credit amounted to $1,807,000,000
decline of $27.000.000 for the week. This decrease corresponds with decreases of $22.000,000 in member ban reserve balances and $6,000.000 in
money in circulation and an Increase of $7,000,000 in Treasury currency,
adjusted, offset in part by a decrease of $7,000,000 in the monetary gold
stock and an increase of $2,000,000 in unxepended capital funds.
Holdings of discounted bills increased 826,000,000 at the Federal Reserve
,Bank of San Francisco and $5,000.000 each at Philadelphia and Chicago,
and declined $23,000,000 at New York, $7,000,000 at Boston and $5,000,000 at Cleveland, combined holdings of all Federal Reserve banks being
substantially unchanged. The System's holdings of bills bought in open
market declined $26,000,000 and of Treasury certificates and bills $3,000,000, while holdings of United States Treasury notes increased $3,000,000.
Beginning with the statement of May 28 1930 the text
accompanying the weekly condition statement of the Federal
Reserve banks was changed to show the amount of Reserve
bank credit outstanding and certain other items not included
In the condition statement, such as monetary gold stock
and money in circulation. The Federal Reserve Board's
explanation of the changes, together with the definition of
the different items, was published in the May 31 1930 issue
431 the "Chronicle," on page 3797.
The statement in full for the week ended Jan. 20 in comparison with the preceding week and with the corresponding
date last year, will be found on subsequent pages, namely,
pages 638 and 639.
Changes in the amount of Reserve Bank credit outstanding
and in related items during the week and the year ending
Jan. 20 1932, were as follows:
Bills discounted
Bills bought
United States securities
Other Reserve bank credit
Increase (÷) or Decrease (-)
Since
Jan. 20 1932, Jan, 13 1932. Jan. 21 1931.
$
819,000,000
+1,000,000 +589.000.00°
+36,000,000
188,000,000 -26,000.000
751,000,000 -1,000,000 +126,000,000
+34,000,000
48,000,000 -2,000,000
TOTAL RES'VE BANK CREDIT-1,807,000,000 -27,000,000
4,450,000,000 -7,000,000
Monetary gold stock
1,785,000,000
Treasury currency adjusted
+7.000,000
+787,000,000
-181,000,000
-2,000,000
5 613,000,000 -6,000,000 +1,020,000,000
Money in circulation
1,972.000,000 -22,000,000 -469,000,000
Member bank reserve balances
Unexpended capital funds, non-mem+54.000.000
458,000,000
ber deposits, dte
+2,000,000
Returns of Member Banks for New York and Chicago
Federal Reserve Districts-Brokers' Loans.
Beginning with the returns for June 29 1927, the Federal
Reserve Board also commenced to give out the figures of
the member banks in the New York Federal Reserve District
as well as those in the Chicago Reserve District, on Thursday, simultaneously with the figures for the Reserve banks
themselves, and for the same week, instead of waiting until
the following Monday, before which time the statistics cover-
FINANCIAL CHRONICLE
J.23 1932.]
591
big the entire body of reporting member banks in the different cities included cannot be got ready.
Below is the statement for the New York member banks
and that for the Chicago member banks for the current week,
as thus issued in advance of the full statement of the member
banks, which latter will not be available until the coming
Monday. The New York statement, of course, also includes
the brokers' loans of reporting member banks. The grand
aggregate of brokers' loans the present week records a decrease of $32,000,000, the amount of these loans on Jan. 20
1932 standing at $531,000,000. The present week's decrease
of $32,000,000 follows a decrease of $5,000,000 last week
and a decrease of $795,000,000 in the 17 preceding weeks.
Loans "for own account" decreased during the week from
$488,000,000 to $453,000,000, but loans "for account of out-.
of-town banks" increased from $69,000,000 to $73,000,000,
while loans "for account of others" decreased from $6,000,000 to $5,000,000. The amount of these loans "for account
of others" has been reduced the past 10 weeks due to the
action of the New York Clearing House Association on
Nov. 5 1931 in restricting member banks on and after
Nov. 16 1931 from placing for corporations and others that
banks loans secured by stocks, bonds and acceptances. The
present week's total of $531,000,000 is the lowest since
Feb. 1 1918, when the amount was $510,179.000.
Holdings of United States Government securities declined $46,000,000
In the New York district and $61,000,000 at all reporting banks. Holdings of other securities increased $10,000,000 in the Clevela d district and
$15,000,000 at all reporting banks.
Borrowings of weekly reporting member banks aggregated $469,000,000
on Jan. 13, the principal changes for the week being decreases of $12,000,000
at the Federal Reserve Bank of Chicago, $9,000,000 at New York and
$7,000,000 at Philadelphia, and an increase of $15,000,000 at Cleveland.
A summary of the principal assets and liabilities of weekly reporting
member banks, together with changes during the week and the year ending
Jan. 13 1932, follows:
Increase (+) or Decrease (—)
Since
Jan. 13 1932.
Jan.6 1932.
Jan.14 1931,
CONDITION OF WEEKLY REPORTING MEMBER BANKS IN CENTRAL
RESERVE CITIES.
New York.
Jan. 20 1932. Jan. 13 1932. Jan. 21 1931.
Condition of Paul M. Warburg Unchanged
The condition of Paul M. Warburg, Chairman of the
Board of the Manhattan Company, who has been ill at his
home in this city since early in December, continues unchanged, according to the latest advices.
Loans and investments—total
6,838,000,000 6,988,000,000 7,880,000,000
Logos—total
4,416,000,000 4,465,000,000 5,563,000,000
On securities
All other
2,205,000,000 2,216,000,000 3,061,000,000
2,211,000,000 2,249,000,000 2,502,000,000
2,422,000,000 2,523,000,000 2,317.000,000
Investments—total
1,578,000,000 1,676,000,000 1,263,000,000
844,000,000 847,000,000 1,054,000,000
-II. S. Governmerrt securities
Other securities
Reserve with Federal Reserve Bank
Cr sh in vault
682,000,000
48,000,000
Net demand deposits
Time deposits
Government deposits
58,000,000
862,000,000
Borrowings from Federal Reserve Bank_
15,000,000
Loans on secur. to brokers & dealers:
For own account
453,000,000
For account of out-of-town banks
73,000,000
For account of others
5,000,000
Total
Loans and investments—total
859,000.000
53,000,000
5,003,000,000 5,066,000,000 5,820,000,000
779,000,000 789,000,000 1,201,000,000
118,000,000 124,000,000
17,000,000
Due from banks
Due to banks
On demand
On time
685,000,000
51,000,000
531,000,000
61,000,000
82,000,000
867,000,000 1,271,000,000
45,000,000
488,000,000 1,101,000,000
69,000,000 330,000,000
6,000,000 326,000,000
563,000,000 1,757,000,000
401,000,000 425,000,000 1,312,000,000
130,000,000 138,000,000 445,000,000
Chicago.
1,526,000,000 1,546,000,000 1,997,000.000
Loans—total
On securities
All other
'Investments—total
U.S. Government securities
Other securities
Reserve with Federal Reserve Bank__
Cash in vault
Net demand deposits
Time deposits
Government deposits
Due from banks
Due to banks
Borrowings from Federal Reserve Bank_
1,057,000,000 1,062,000,000 1,423,000,000
612,000,000
445,000,000
611,000,000
451,000,000
Loans and Investments—total____20,287.000,000
—92,000,000 —2,379,000,000
13,031,000,000
—46,000,000 —2.891.000,000
5,660,000,000
7,371,000.000
—27,000,000 —1,862,000.000
—19,000.000 —1.029.000,000
7,256,000,000
—46,000,000
+513,000,000
3,996,000,000
3,260,000,000
—61,000,000
+15,000,000
+850,000,000
—338,000,000
1,516,000,000
249,000,000
—27,000,000
—7,000,000
—354,000,000
—6,000,000
Loans—total
On securities
All other
Investments—total
U. S. Government securities__
Other securities
Reserves with F. It. banks
Cash In vault
Net demand deposits
Time deposits
Government deposits
Due from banks
Due to banks
Borrowings from F. R. banks
11.643,000,000
5,843,000,000
265,000,000
—138,000,000 —2,219,000,000
—11,000,000 —1.216,000,000
—31,000,000 +150,000,000
927,000,000
2,427,000,000
—60,000.000 —783,000,000
—145,000,000 —1,271,000,000
469,000,000
—14,000,000
+389,000.000
Gates W. McGarrah, Chairman of Bank for International Settlements, Arrives in New York—Says
Increased Taxes and Less Federal Financing is
Needed to Effect Business Recovery.
Gates W. McGarrah, Chairman of the Bank for International Settlements, arrived in N@w York yesterday (Jan.
22) on the steamer "Europa." Mr. McGarrah is reported
as saying that the world is confident that America will lead
the way to recovery. The New York "Evening Post" of
last night said:
To it he added the assurance that no one worries about the future of
America.
Mr. McGarrah, although he reused to comment upon European affairs
or the policy of the Bank for International Settlements, was definite in
his conviction that the United States was showing signs of returning confidence.
"The big problem facing the Government to-day," he said, "is of placing
Its house in order, and the sooner this is accomplished along sound economical lines the quicker the return to normal progress. Increased taxation
and less Federal financing to meet unbalanced budgets should be the order
of events. Following this course, the United States will have little difficulty in overcoming its present difficulties."
Mr. McGarrah expects to remain for only a short period.
834,000,000
589,000,000
469,000,000
484,000,000
574,000,000
255,000,000
214,000,000
272,000,000
212,000,000
277,000,000
297,000,000
152,000,000
19,000,000
147,000,000
18,000,000
184,000,000
13,000,000
1,007,000,000 1.004,000,000 1,265.000.000
402,000,000 411,000,000 611,000,000
11,000,000
12,000,000
12,000,000
93,000,000
243,000,000
117,000,000
256,000,000
160,000,000
346,000,000
3,000,000
2,000,000
1,000,000
Death of Sir Herbert Hambling Deputy Chairman of
Barclay's Bank, London.
Sir Herbert Hambling, one of London's leading bankers
and Deputy Chairman of Barclay's Bank, died suddenly at
his country home, Yoxford, Suffolk on Jan. 19 said a London
message to the New York "Times." He would have been
75 years old in July. The following is also from the "Times":
From 1924 until 1930'Sir Herbert, who received his knighthood in 1917
and his baronetcy in 1924, was a government nominee on the board of
directors of Imperial Airways, Ltd. He was formerly General Manager
and a director of the London, Provincial and Southwestern Bank.
In 1924 he was High Sheriff of Suffolk, from 1923 to 1925 President of
the Institute of Bankers.
Complete Returns of the Member Banks of the Federal
Reserve System for the Preceding Week.
As explained above, the statement for the New York and
Bank of England Repaying Credit Granted by Federal
Chicago member banks are now given out on Thursday,
Reserve—Banks Greater Part of $75,000,000 Retired
simultaneously with the figures for the Reserve banks themDollar Balances.
by
selves, and covering the same week, instead of being held
From the "Wall Street Journal" of Jan. 21 we take the
until the following Monday, before which time the statistics
covering the entire body of reporting member banks in 101 following:
The Bank of England has already repaid between $55,000,000 to $60,cities cannot be got ready.
000,000 of the 175,000,000 credit granted by the Federal Reserve Bank.
In
addition, the dollar balances of the Bank of England are growing steadily
In the following will be found the comments of the Federal
indications are the entire $75,000,000 credit will be wiped out upon
Reserve Board respecting the returns of the entire body of and
maturity at the end of this month.
reporting member banks of the Federal Reserve System for
Probably the Bank of France is being reimbursed similarly to the Federal
Reserve. No extension of the credit appears necessary now.
the week ended with the close of business on Jan. 13:
The Federal Reserve Board's condition statement of weekly reporting
member banks in leading cities on Jan. 13 shows decreases for the week of
$92,000,000 in loans and investments, $138,000,000 in net demand deposits,
$11,000,000 in time deposits, $31,000,000 in Government deposits and
$27,000,000 in reserves with Federal Reserve banks.
Loans on securities declined $12,000,000 at reporting member banks in
the New York district, $6,000,000 in the Chicago district and $27,000,000
at'.all reporting banks. "All other" loans declined $14,000,000 in the
Cleveland district, $7,000,000 in the Chicago district, $5,000,000 in the
San Francisco district and $19,000,000 at all reporting banks.
On Aug. 1 1931. the Federal Reserve Bank of New York, in conjunction
with other Federal Reserve banks, announced that it had agreed to purchase from the Bank of England "up to the approximate equivalent of
$125,000,000 of prime commercial bills." Bank of France extendel a
credit of a similar amount, making $250,000,000 in all.
References to the credits to the Bank of England and the
Bank of France appeared in these columns Aug. 8 1931,
page 878. Further items were given in our issues of Oct. 24,
page 2683 and Oct. 31, page 2840.
592
FINANCIAL CHRONICLE
[VOL. 134.
erously funded by the United States and the agreement voluntarily signed
by the representatives of the various governments. In their present form
and amount they represent only a small part of the money actually advanced
by this country and including the interest adjustment, cover in some cases
not much more, in some cases no more than, the money advanced for reThe Mauritius Government loan amounting to £600,000 in 5% stock,
offered at 98;i, was subscribed about fourfold in an hour when the lists construction after the signing of the Armistice. They represent money
realized
by the sale of United States bonds to the people of the United
were opened here to-day.
States, most of which bonds are still outstanding and must be paid by the
United States Government.
It is, therefore,impossible for the United States to admit that if Germany
Great Britain Postpones Lausanne Conference on
is or may be unable to pay further reparations this automatically cancels
Reparations.
the debts, since the debts have no relation to the reparations. When the
The conference on reparations, scheduled to open at debts were created, no reparations existed. At the time of funding, the
amount of
debts was estimated on the normal capacity of the various
Lausanne on Monday next (Jan. 25) has been postponed, nations to the
pay, irrespective of reparations.
Mauritius Loan Oversubscribed.
The following London cablegram Jan. 18 is from the New
York "Times":
an announcement as follows in the matter having been issued
in London on Jan.20 by the British Foreign Office:
"The conversations which have been taking place between the governments chiefly concerned with the conference at Lausanne are not yet
concluded, and it is evident the conference cannot be begun as early as
next Monday. the date which had been previously fixed. Further conversations are now in progress, and the British Government entertains
the hope that it may be possible to come to a satisfactory agreement regarding the procedure to be adopted in the course of a few days."
The New York "Times" London cablegram from which
we take the foregoing, said:
The news of the postponement was regarded in all political quarters
tonight as "profoundly depressing," and "The London Times," which
strongly supports the National Government, goes so far as to say, "It is
Worse than folly to pretend that a mere delay can bring an improvement."
Economic Changes Cited.
It is obvious that since that time the world-wide economic crisis has In
certain nations deeply affected that Capacity and that certain nations, may
in consemence have to request consideration from the American Government as to their temporary capacity. I have in mind, for example, the
situation in Great Britain at the present time. Everyone knows the difficulty there is the very heavy taxation, and knows that if the depreciation
of the pound continues, it will probalby affect the British capacity to make
the payments which fall due next December. It is inconceivable that the
United States would not sympathetically consider a proposal for a temporary adjustment based on temporarily diminished capacity.
What I have been steadily trying to bring out is that the debts are in
a totally different status from reparations and that there should be no repudiation of the principle that they are valid and sacred obligations and
that these obligations are individual to each nation, not collective to the
debtors as a whole or to be dealt with in that fashion.
On Jan. 21 Associated Press accounts from London stated:
Urge Cancellation of All Reparations—Directors of
Federation of German Industries See Threat of
Disaster.
The directors of the Federation of German Industries at a
meeting in Berlin on Jan. 15 under the Chairmanship of Dr.
Gustav Krupp von Bohlen went on record for cancellation of
reparations, fully backing up Chancellor Bruening's stateDeparture of United States Delegation to Geneva Con- ment of Jan. 9. This reported in a Berlin cablegram Jan.
15 to the New York "Times" which further said:
ference on Disarmament.
Federation believes that the economic situation makes it impossible
Senator Swanson of Virginia, delegate to the Geneva arms forThe
Germany to continue polltical payments, and that any attempt to.mainthe
American
party
en
44
members
of
and
route
conference,
tam such payments would lead to a catastrophe, not only for Germany
to Geneva sailed on Jan. 20 on the steamer President Hard- but for the whole world.
"The necessary premise of economic welfare of the world is the free intering. The Geneva conference opens Feb. 2. From the change
of goods, which, however, is prevented by reparations, because they
"Evening
Post"
of
Jan.
20
we
take
the following:
New York
force the debtor countries to increase exports, while other countries try to
The British Government's announcement that the Lausanne reparations
conference would be postponed does not mean that the conference has
been abandoned, it was said today in official circles. Preliminary work
for the meeting is being continued, a competent spokesman said, and the
government hopes the conference will be held and will prove to be successful.
No one in official quarters took seriously what one of the London newspapers described as a "new" plan to solve the reparations problem by allowing Germany to meet her obligations with railroad bonds instead of cash.
The group traveling to the conference includes Mrs. Swanson, Commander Richmond K. Turner, chief of the planning division of the Bureau
of Aeronautics, United States Navy; S. Pinkney Tuck, member of the
foreign service staff: Brigadier-General George S. Simonds, assistant chief
of staff of War Plans Division of the War Department, and Theodore
Marriner, chief of the division of Western European Affairs of the Department of State.
Other members of the American party are David McK. Key, Claton S.
Becker, Leo J. Vincelette, George C. Windle, H.G.Hurts,Francis Flaherty,
Douglas Dean Hall, Captain and Mrs. H. H. Van Keuren, Mr. and Mrs.
Frederick W. Wile, Mr. and Mrs. Thomas C. Kinkaid, Captain Kent C.
Melhorn, Admiral and Mrs. Arthur T.Hepburn, Lieutenant Colonel George
V. Steen and Major and Mrs. James E. Chaney.
Women Observers on Board.
Six unofficial women observers to the conference who are sailing on the
President Harding are: Mrs. Frank Day Tuttle of New York, Chairman
of the Board of Directors of the League of Nations Association; Mrs. Ben
Hooper of Oshkosh, Wis., an official of the General Federation of Women's
Clubs; Mrs. L. Henry Fradkin, member of the New Jersey League of
Women Voters, and Mrs. Hannah Clothier Hull, Miss Katherine Oevereux
Blake and Mrs. Meta Berger, members of the national board of the Women's
International League for Peace and Freedom.
As we note in another item, in view of the fact that Gen.
Charles G. Dawes is to become President of the Reconstruction Finance Corporation, his place as Chairman of the
American delegation to the Arms Conference will be taken
by the Secretary of State. Announcement of this was made
as follows on Jan. 19 by President Hoover:
In view of the change in General Dawes' plans, Secretary Stimson
has undertaken the Chairmanship of the delegation to the arms conference
at Geneva. The Secretary will not attend the opening meetings, but
will take part in the work of the commission after the preliminaries have
been disposed of. Ambassador Gibson will be Acting Chairman of the
delegation.
bar them through all available means," it is said in the statement.
The board of directors heard a report on the work of the Franco-German
committee from Dr. Ernst von Simson, chairman of the first subcommittee,
who declared the discussion had made "relatively satisfactory progress, if
not within the last few days, but that the measures of the French Government had provided for a certain element of disturbance."
Sir Walter Layton Says Germany Can Pay Something—
Opposes New Moratorium on Reparations.
Sir Walter Layton who drew up the report of the Wiggin
committee of international bankers on German credits last
Summer and was also part author of the recent Basle experts'
report on reparations, declared on Jan. 13 (according to a
London cablegram to the New York "Times")that Germany
could clearly pay something and a plan could be devised
which would not be greatly harmful. The cablegram con.
tinned:
Sir Walter, describing the present financial situation as "desperately
difficult and urgent," told the members of the Eighty Club, however,
that the reserve of the Reichsbank was extremely small and Germany's
ability to repay "rapidly dwindling to nothing."
A moratorium, he added, would be "no good" because it meant waiting
and the root of the problem was to get a settlement without any possiblity
of a recurrence of the present situation, with its check to the flow of capital.
The German viewpoint that the whole of the war debts should be wiped
out, Sir Walter said, was largely economic.
"Supposing they were all wiped out, somebody is going to pay," he dedared. "Britian is going to pay. There is £1,600,000,000 of Britain's
national debt still remaining on this country in respect of the money which
was raised here and loaned to the Allies, and we have got to go on paying
interest thereon until the bonds have been repaid out of taxes in this country.
"The internal debt remains. Germany would be left with only £500.000,000 of internal debt, of £8 per capita. France would be left with
approximately £2,300,000,000 of debt, which is £56 per capita. Britain
would be left with £6,600,000,000 of internal debt, or £150 per capita, and
the United States with an internal debt of £3,200,000,000, or £27 Per
capita."
There should be an agreement now enabling immediate reconstruction,
Sir Walter emphasized.
Sir Ernest Benn, publisher, declared at a luncheon of the Individualists
to-day that reparations and intergovernmental debts were now "dead as
a dodo."
"We know now that, whatever may appear upon documents, not another
cent or centime of the reparations to intergovernmental debts will ever
be paid or extracted," he said, his remarks being enthusa.stically cheered.
Senator Reed Contends European Debts to United
States Bear No Relation to Reparations—Declares
Amounts Due United States Must Be Paid.
The fact that Germany is, or may be, unable to pay her
reparation obligations will make no difference respecting
the obligations of European powers to the United States
as to which the policy remains unchanged, according to
statement Jan, 15 by Senator Reed (Rep.), of Pennsylvania.
In giving Senator Reeds' Senate statement the "United
George Lansbury, Leader of Labor Opposition in BritStates Daily" of Jan. 16 said:
ish Parliament Demands Reparations End—Says
Senator Reed asserted that debts and reparations were separate questions
and that in so far as the United States is concerned, the failure of Germany
Great Britain Must Cease Collecting and Paying
to pay her obligations would not be permitted to alter the amounts due the
United States.
United States. The debts due the United States, he added, were for money
borrowed and reparations were for indemnity.
The following from London Jan. 15, is from the New York
Senator Reed's statement follows in full text:
The constant press reports from Europe attempting to class debts due to "Times":
us with reparations will not meet a responsive chord in the United States.
The debts were for monies advanced, not for indemnities, They were gen-
George Lansbury, leader of the Labor Opposition in Parliament. to-night
expressed the following view on reparations:
JAN. 23 1932.]
FINANCIAL CHRONICLE
593
r "The government must be told that the reparations business
shall end
Confirms Previous Stand.
and we shall tell America we won't pay any more. The world
knows the
This was done through memorandums and conversat
the day of reparations and indemnity is over. You can't make Germany
ions with Ambassadors
and
Ministers. It constituted offical confirmation of
pay, either. You cannot take out of that nation and try to
what the
ruin that partment had
previously announced informally through the press. Denation without ruining ourselves at the same time. The
temple of capitalFour months ago the French Government had
ism in Europe may be pulled down quite involuntarily by the German
officially confirmed its
position against a reduction in German reparations
nation collapsing and then no one can tell what will happen."
unless accompanied
by corresponding cuts in debts owed by France. This
notice was given in
a note from Paul Claudel, French Ambassador, and was
in line with previous informal declarations in Paris. It was accepted
by the State DepartFormer Secretary of War Baker Sees Danger of War
in ment as having been delivered merely for information and requiring no
reply.
Reparations Question—Says France Would Have
Seized Rhine Year Ago if Germany's Reparations
Announcement Had Come Year Ago.
Newton D.Baker,former Secretary of War,is of the
opinion that France would have seized the left bank of the
Rhine
had Germany's reparations announcement come a year
ago.
An Associated Press despatch from Cleveland Jan.
11,
stating this continued:
Reiteration of the French attitude by Premier Laval before
the Chamber
of Deputies to-day was expected, but occasioned no
comment other than
that the United States did not intend to intervene in
the situation at
this time or make preliminary commitments in advance of
action by Europe
in the reparailions problem.
Tells of Deadlock.
The Premier, it was explained, summoned Ambassador
Edge Saturday
to discuss another subject, and then veered to reparatio
ns. Outlining
the preliminary negotiations between France and Great
Britain for an
understanding prior to the Lausanne conference, he described
"I am inclined to believe that if Herr Bruening"s
how a deadstatement had been lock had developed, hinted that confusion might develop in
made a year ago instead of now, the French Army would
Europe if no
accord were reached, and mentioned that Great Britain
have
marched
up
favored
the Rhine as far as Dusseldorf, taken over the left
bank of
mately a six months' extension of the holiday year, somethin approxiseized the German ports in order to collect the customs, the Rhine and
g to which
and then taken France was not amenable in the present circumstances.
over the German railroads, which produce considera
ble revenue.
In her present non-committal attitude. it is understood,
"Fortunately. Germany didn't say it a year
the
United
ago. And France has States has no desire to be blunt or to close the
door to reasonable action
learned something, but not much. in the last
year."
later,
although
this
question
is
bound
up
fudament
ally
Mr. Baker said he was not surprised at Herr Bruening'
in the stand
s
of Congress, which has declared against revision or cancellati
on of debts
on reparations. "The surprising thing is that she (Germanannouncement
y) paid any," owed to this country.
he said.
The reparations question, he said, is one "out of
which anything can
happen." for the danger of war is greater now
Ambassador Edge at Paris Forwards to Secretary
than in 1914.
"Up to 1918," Mr Baker said, "Europe was organized
on the basis of
Stimson Memorandum from Premier Laval on Execonomics. Now, under the Treaty of Versailles
, it is organized on the
basis of nationalism.
tension of Moratorium on Inter-Government Debts,
"It is difficult to reconcile economics and nationali
sm in Europe. But
Associated Press advices from Washington on Jan. 18
only when that is done will the danger of
war be removed. The World
Court provides machinery for removing that danger."
stated that Premier Laval of France has taken diplomatic
"Nations fight," he said, "over economic
steps to determine the American Government's attitude toand nationalistic matters."
ward possible European extension of the moratorium on
vernmental debts. The account continued:
Initiative on Reparations Left to Europe—Washington inter-go
Ambassador Edge In Paris to-day reported to Secretary Samson
by
Authorizes Ambassador Edge to Tell Premier Laval cablegram that the Premier had personally sought information on the
We Will Not Take First Step—Secretary Stimson's Administration's attitude. The Premier's action followed a memorandum
handed by the Secretary of,State recently to Ambassador
Claudel of France
Memorandum to France Asserts There Is No Con- In which the
position of the American Government on the debt question
was outlined.
nection Between War Debts and Reparations.
In brief, the memorandum was similar to views expressed
by President
Under date of Jan. 20 a Paris cablegram to the
New Hoover and Premier Laval in their joint statement after the French statesYork "Times" made known the principal points
man's visit to Washington. The American position was and
still is that
enunciated any initiative on the debt problem must
in a memorandum from Secretary of State Stimson
come from Europe.
to the
Premier Laval told Ambassador Edge it would be difficult
French Ambassador at Washington, in which
for him
among other to go before the French Parliament with any suggestion of a European
things it is declared that there is no connect
moratorium extension without knowing the attitude of
the United States
ion between If such action was taken.
The question
war debts and reparations, and that Europe
must take the over a specific period was not taken up. of extending the moratorium
initiative as to reparations.
American officials said to-night they did not regard the recent
memoThe Paris message to the "Times" follows:
randum to Ambassador Claudel as a reply to a previous note
from France
several months ago outlining
The United States' position on war debts and
reparations, as communicated In a memorandum from Secretary of
State Stimson to Ambassador
Claudel in Washington, was made clear here to
-day. Although the memorandum was handed to the French Ambassad
or three weeks ago, its contents were revealed only to-day. Five points
are set forth. As summarized
here, they are:
1.—There is no connection between war
debts and reparations.
2.—The European powers must take the
initiative on reparations.
3.—A demand for a new debts moratori
um could not obtain approval in
Congress, and the Senate opposes a cancellat
ion or reduction of the debts.
4.—The United States Government would
look with displeasure on the
formation of a united front by the debtor
nations.
5.—The existing debt arrangements, having
been concluded separately,
can be eventually revised only by separate accords.
The French papers to-day prominently displayed a
dispatch from Washington announcing that Premier Laval in his conversat
ion with Mr. Edge
last Saturday had sounded him on the subject of the
Hoover moratorium and had received the reply thatprolongation of the
the United States
could not commit itself in advance.
Despite the fact that the French papers, with the exception
of "Figaro,"
have only an incomplete version of the Samson memoran
dum, they all
have definitely grasped the fact that the United States'
attitude continues
Inflexible, which has served the purpose of clearing the air,
but has given
new opportunity for the press to become disgruntled with
the United
States.
It was confirmed that Premier Laval did sound out Ambassad
or Edge
last Saturday regarding the prolongation of the moratorium, but
it is incorrect to say that Mr. Edge had been instructed to inform
the
French
Government that the Administration could not commit
itself to a further
moratorium now. In fact, M. Laval was given to
understand
question of debts and reparations was closed for the time being,that the
barring
new developments.
that government's general position on war
debts and reparations.
The French note was never made public, but it was said
authoritatively
to
-night to contain two principal points. They were that
France would
expect a corresponding reduction in debt payments for
any slash in Germany's reparations, and that France believed governme
ntal obligations
should have priority of payment over private obligatio
ns, if at the expiration of President Hoover's one-year moratorium on
June 30 all could
not be paid.
Administration officials interpreted M. Laval's
action as seeking to
determine whether there was any possibility of a
change in the Congressional
attitude on the subject of war debts.
Congress, in approving the present moratori
um, emphasized it would
not countenance any reduction or cancellat
ion of war debts. An extension
of the moratorium was not specifical
ly mentioned.
"Sacrifice" on War Debts Is Barred by Premier
Laval
of France--Says France Will Not Reduce
Claims
Without Cut in Her Obligations—Restates Stand
on Arms—Demands "Security" Before Disarm
ament and Decries "Panaceas" for World.
A cablegram from Paris Jan. 19 to the New York
"Times"
stated that in very definite terms, despite their envelo
pment
in somewhat obscure language, Premier Laval set
forth on
that day in his Ministerial declaration the policy
of his
reconstructed Cabinet before the Chamber of Deputie
s on
what France wants with regard to reparations,
cancellation
of war debts and arms limitation. The Paris
correspondent
The same paper had the following to say in a Washington of the "Times" continued:
dispatch Jan. 19:
France, he said, will not permit the right
Walter E. Edge, American Ambassador in Paris, was authorized by
the
State Department to-day to tell Premier Laval that the initiative with respect to intergovernmental debts should be taken by Europe, and the
United States intends to make no move in the situation, at least not before
Europe has taken some step. Ambassador Edge had previously made
such a statement to Premier Laval in their conversation of last Saturday.
The Ambassador then informed the State Department concerning what
he had said, and inquired whether his statement of the American position
was correct. The Department replied in the affirmative and told him
he could reiterate the statement, if he desired. No note was sent, it was
said to-day, and the Department does not think that the authorization
It has given to Mr. Edge was even equivalent to instructions.
The conversation between the Premier and Ambassador Edge, it is
held, strictly required no action here, as Premier Laval Made no definite
request of the United States and the position of this Government was well
known. A month ago, when Congress approved the Hoover moratorium,
the State Department formally notified the interested governments that the
Initiative with reference to any further step rested with Europe.
of reparations to be suppressed.
She does not regard cancellation of reparatio
ns and war debts as panaceas
for the present world depression. She
will sacrifice nothing of what
is
owed to her unless there is a correlative
remission of her own debts.
To that he added a phrase which is
interpreted as indicating that
France
adheres to her claim to part, at least, of the
unconditional payments under
the Young Plan, whether or not the American
debt in the amount of the
postponable payments is canceled. That
indication was contained in
the
phrase, "It is our duty to future generatio
ns to subordinate all
ments to a just balance of the condition
agrees of production and
existence."
Emphatic for Security.
With regard to disarmament M. Laval
was equally emphatic.
stands by the memorandum of July 15
France
and by the preliminary
to any arms limitation scheme which
condition
her
successive representatives at
Geneve, Leon Bourgeois,
Edouard Herriot, Aristide
Briand, Joseph PaulBoncour and others, have constantly
defended, that there must
be
for signed engagements, arbitrage,
definition of an aggressor and respect
mutual
assistance. In other words, there must be
security
before
there
armament.
is dis-
594
FINANCIAL CHRONICLE
He was
The Premier's declaration was read before a crowded house.
cries
cheered on the right an i in the centre. From the left rose repeated
Minister
of the name of Aristide Briand. It was the shade of the former
absent
was
he
of Foreign Affairs which dominated the debate from which
In person.
a startEvery orator mentioned him. Then there fell on the Chamber
t party,
ling pronouncement from Louis Mario, leader of the Nationalis
which supports the present government.
that a number
M.Frossard, Socialist, was speaking. He had mentioned
because of the
of times the last government had been saved from defeat
support which M. Briand brought it.
success one
Standing in his place, M. Mann retorted: "To achieve
man missing—dismust often make an attempt. To-day there is one
disappear."
appeared. To-morrow it will be his policy which will
this frank acknowlEven the centre and some of the right were amazed at
peacdoand security
edgement that the policy of M. Briand with regard to
unacceptable but utterly
which the Premier had been lauding was not only
regarded as a sound
opposite to what nearly a hundred of his supporters
policy for France.
Statement Is Challenged.
M. Froward immediately took up the challenge.
been described as a
"What!" he exclaimed. "Has M. Laval, who has
his work? That
pupil of M. Briand, taken his master's place to destroy
e. It concerns the
question is essential. It is the only one of importanc
For.. 124.
seem to insure against inflation of the public debt," the
embassy's announcement concludes according to the cablegram, which continued:
The statement is believed to have been called forth by two dispatches
from Professor H. Parker Willis, New York banking expert, to a French
financial daily, which have been widely quoted here. Professor Willis
is
writes that there are reports in New York that the Bank of France recalling its foreign holdings, including dollars, at which there is no surprise.
The report, however, was denied here to-day by a qualified source.
Comment in the French presss is much to the same effect as the Willis
that
dispatches. Frederic Jenny, financial writer of Le Temps, charges
recent moves by the Federal Reserve Board are a reversal of its former
policy and break the promises President Hoover is alleged to have made to
Premier Laval regarding the maintenance of the gold standard.
"How will the international financial world judge the new credit expansion of the United States?" he asks. To this question the exchange movement has already given the first answer. The mere idea has sufficed to
bring down the dollar quotation in two days from the metallic par to the
Immediate vicinity of the gold point and to provoke a sensible increase in
the outflow of gold from America to Europe."
One source declared, however, that it was quite well known here that
credit expansion and currency inflation were two different things.
The dollar hovered between 25.40 and 25.41 francs to-day, which is
lust about the gold point.
whole future of France and the world."
when the debate
M. Laval was silent, reserving his reply for Thursday,
will be resumed.
Leon Blum was the second orator of the afternoon.
the terms of the memorandum
"If this Government persists in supporting
holding a disarmament conference
of last July," he said,"there is no need of
You are in disagreement
for France is isolated, even intellectually isolated.
with the conscience of the world."
the seventh year in
for
Fernand Bouisson, President of the Chamber
for his re-election, said:
succession, in a speech of thanks to the Deputies
which my office im"Without. I hope, exceeding the limits of reserve
will never abandon anything of
poses, I think I may say that this country
reduction of its debts.
its credits without a guarantee of an equivalent
the spirit in which all former
I believe that in saying so I interpret exactly
by you."
accords have been concluded and ratified
His statement was cheered by all parties.
Premier Sees Grave Task.
declaration were:
The principal passages of Premier Laval's
in the field of foreign affairs.
"Our Government must face a grave task
are at this moment the object
It must deal with those two problems which
the limitation and reduction
and
ns
of international discussion: Reparatio
of armaments.
of nations makes us
"The crisis, of which the economic interdependence
opinions, it has further
feel the effect, has not only disturbed people's
n of the docthe
on
imaginatio
more
founded
given rise to many systems,
trinaires than on the reality of facts.
ills from
"The world, greedy for formulas which promise a cure for the
which it is suffering, unfortunately welcomes with too much favor the
for
demands
annulment
The
it
as
to
panaceas.
theories which are brought
of reparations and war debts comes out of that state of mind.
"We shall not accept for future solutions things which, while powerless
to dispel the crisis, will hurt France in her essential interests and in her
rights, affirmed in freely accepted treaties.
"We shall not permit the right of reparations to be taken away. We are
being asked for a quit-claim in favor of our debtors.
"A double duty lies on us.
"Toward those generations which suffered from the war there is the duty
ing
of fairness: To sacrifice nothing of our credit without a correspond
remission of our own debts.
To
prudence:
of
duty
a
"With regard to future generations there is
production
subordinate all agreements to a just balance of the conditions of
and of existence."
Will Adhere to Old Principles.
ion
This balance would be broken if, when this crisis is past, a disproport
placed
of financial and fiscal charges burdening the activity of the peoples
market.
nal
internatio
the
in
us in any state of inferiority
undertake
The Premier made a reference to negotiations which it must
the existing agreements
to adapt to this period of economic depression
al
fundament
these
follow
strictly
to
regarding war debts will continue
"
principles which the French Parliament has always approved.
of the country,
The Premier made a reference to the internal situation
being as good as represented
insisting that the situation was far from
of the fiscal
the
end
before
be
voted
abroad. He urged that the budget
year. Then he said:
reduction of armaments will begin
"A conference for the limitation and
matter has been defined in the memoranon Feb. 2. France's policy in this
dum of July 15.
has been for 12 years that of
"This policy, included in the covenant,
of Nations. Our country has never
France as well as that of the League
and humanitarian importance:
ceased to appreciate its economic, political
international force and the control
"Leon Bourgeois's proposal for an
Resolution 14 of the Third
of armaments; Article VIII of the covenant;
and disarmament voiced in
Assembly; the formula of arbitrage, security
1924 negotiated by Joseph
debate by Edouard Herriot; the protocol of
although unratified,
Paul-Boncour and Louis Loucheur, which remains,
conception; the successive
the most complete expression of the French
the Pact of Paris and
applications of these Ideas in the accords of Locarno,
attached the name of Aristide
the act for general arbitrage, to all of which it
support our policy, which
Briand. Such are the successive titles which
s.
has been repeatedly approved by our Parliament
any need for in"It is sufficient to recall these titles to mark without
that all parties adhere
sistence that it is the policy of the whole nation,
to it, that all will support it."
Senator Reed Denies Threat to France's Assets—
Disputes Herriot's Statement That He Said United
States Might Seize Deposits.
Indicating that Secretary of State Stimson said on Jan. 18
that there had been no change in the American attitude with
respect to the intergovernmental debt problem and the decision not to send an American observer to the Lausanne conference on reparations. A dispatch Jan. 18 from Washington
to the New York "Times" added:
nia, dented to-day in
Senator David A. Reed, Republican, of Pennsylva
seize French assets
the Senate that he had ever said the United States might
by France to the
in the United States as part payment for debts owned
in a signed article by
United States, in replying to a statement contained
"Times" of last Saturday.
Edouard Herriot printed in the New York
Senator Reed said:
I am told there
"In the Saturday edition of the New York "Times"
of France, M. Herriot,
appeared an article by the former Prime Minister
in which he says:
told us that his country
"'David A. Reed, United States Senator, has
assets.'
might under certain circumstances seize our
have been silly of me to
"I never made any such statement. It would
susceptible of such
have made any statement like that, or any statement
debts in a radio speech
construction. In discussing the intergovernmental
Republic had on deposit
last week I did make a statement that the French
to make the annual
in New York 10 times as much money as was necessary
on deposit there to
installments due on her debt to us; that she had enough
country.
this
to
s
obligation
pay for 10 years' installments on her
that no question of
"I made that statement for the purpose of showing
was involved in her
exchange or balance of commodities or trade balance
or could attach those
capacity to pay. I did not say this country would
been silly to say
balances which she has in New York City. It would have
as enemy property,
so. If we were at war With her we might seize them
but we are not going to war to collect that debt.
only as an ac"In any other circumstances an attachment might issue
law that a foreign
companiment to a suit at law, and it is elementary
The court would have
sovereign cannot be sued in an American court.
the attachment. Conno jurisdiction to maintain such a suit or issue
as M. Herriot quotes
thing
such
any
sequently, it would be foolish to say
in this public way
me in his article as having said. I want to disclaim that
malice that could
and to say that I cannot imagine anything other than
did say."
have caused such a complete distortion of what I actually
British Federation of Chambers of Commerce Urges
an Empire Currency—Addresses Note to Various
Governments.
A plea for a uniform empire currency was made in London
on Jan. 13 by the Council of the Federation of Chambers of
Commerce of the British Empire, which consists of repre10
sentatives of 157 individual chambers of commerce and
associations of chambers of commerce in all parts of the
Empire. A London cablegram, Jan. 13, added:
Governments stat-
The Council addressed a memorandum to all Empire
of vital
ing that a uniform monetary system throughout the Empire was
of the Empire
importance. The memorandum pointed out that most
curcountries were off the gold standard and obliged to depress prices by
"If a
rency contraction in order to compete in the world's markets.
um,
memorand
the
uniform Empire monetary system were enforced," said
collaboration
"it shouldn't be difficult to devise machinery for close
timely steps to
between their respective Central banks, which would enable
equilibrium and so
be taken to keep balance payments between them in
competition."
substitute same co-operation for insane and suicidal
g—Chancellor
Great Britain Will Aid Pound Sterlin
Externally
Declares Stabilized Currency Is Sought,
and Internally.
externAmerican Embassy at Paris Reassures French on Debt
Britain intends stabilization of its currency
Great
Inflation—Cites Assertion by President Hoover ally as well as internally, and will take such steps as are
That Budget for 1932-1933 Would Balance— practicable in order to bring about this end at the earliest
er stated
Statement by H. Parker Willis.
possible moment, the Chancellor of the Exchequ
a report
to
g
New
the
York
to
18
accordin
"Times"
s,
Jan.
recently in the House of Common
A Paris cablegram
a statement to from the British Embassy at Washington to the British
issued
Embassy
n
America
the
that
stated
its attention to a declara- Empire Chamber of Commerce in the United States of
the French press on that date calling
not previously published America. This is noted in the "Wall Street Journal" of
9,
Jan.
tion by President Hoover on
that the budget of I Jan. 12 from which we quote further as follows:
asserted
t
Presiden
the
which
in Paris, in
abandonment of the gold standfor the year beginning
Referring to the British Government's
was
the United States would be balanced
pointed out that the depreciation of currency
Chancelor
the
ard,
t
the
Presiden would '
July 1. "The policy thus enunciated by
JAN. 23 1932.]
FINANCIAL CHRONICLE
595
not a voluntary and deliberate act, nor an attempt to force down wages
and costs in order to give some special advantage and stimulation
Melting of Gold Coins Increases in Britain.
to
industries.
The following (United Press) from London Jan. 18,
"There is not any ground for imagining that there is going
Is
to be any
deficit in the budget of this year and still less in the budget
of next year; from the "Wall Street Journal" of Jan. 18.
and I have every reason to suppose that the Government will be
The melting of gold coins, an offense punishable by
able to
two years' immeet all their obligations out of current annual revenue and
at the same prisonment, was reported rapidly increasing as a result of Britain's
time make a substantial contribution to the provision
abanfor debt redemption," donment of the gold standard.
he said.
It was claimed an organization had appointed agents througho
ut the
"I fancy those foreigners who have been taking their balances
away to-day country offering 25 shillings for a gold sovereign, ordinaril
y valued at
at the present level of the pound, thereby incurring a loss,
will very much 20 shillings. A sovereign is opined to contain .256 ounces of 22-carat
regret some day what they have done when they find,
gold,
as
they will find, that their action was totally unnecessary. I am confident which now is worth about 30 shillings.
It
was
reported
Manchest
trader
a
in
er
made
:6500
in
a
week
"Do not let us forget that, although at the moment
trading
difficulty in collecting our foreign debts,still we remain we may have some in sovereigns.
the greatest creditor
nation in the world: and when the world conditions
settle down I have not
the slightest doubt that we shallfind sterling resume its
place as the prinicpal Austria Bans Gold for Teeth to Prevent Dental
standard of international credit."
Hoarding,
Associated Press advices as follows from Vienna, Jan. 13,
John Maynard Keynes Looks for Other
Countries to are taken from the New York "Times":
Follow Great Britain in Going Off Gold
Vienese who have taken to hoarding gold in their mouths in the form
Standard.
of gold fillings, crowns and bridgework have run into difficulties.
Under date of Jan. 8, a cablegram from Hambu
rg to the
Under a new law restricting foreign exchange, the right to buy and
New York "Times," said:
sell gold is taken from the firms which regularly cast gold
Speaking before a large audience to-night,
John
economist, predicted that in 1932 many countries Maynard Keynes, British
, and especially Germany,
South Africa, the Middle European countries
and possibly The Netherlands, would follow Great Britain in abandoni
ng the gold standard.
With respect to reparations he declared that
all parties and other groups
in Britain were in favor of cancellation. He
warned Germany, however,
not to insist on immediate cancellation, saying
that the possibility of a
small annuity after three years must be
preferred to the dangers of failure
to reach an agreement at Lausanne.
"I have often doubted the wisdom of Germany
's policy of fulfilment,
but now that the fruit Is beginning to ripen,
Germany should not lose
patience," he said. He added that a definite
solution must be found before
the end of 1932.
Sir Josiah Stamp Assails Americ
ans
Critics—Asserts That Attacks
bridges and
similar material for dentists. They have been doing a good business lately.
The National Bank, which now has the sole right to sell gold, has
taken the position that temporary fillings will have to do until the gold
crisis is past.
Canada Sent $31,737,899 in Gold Bullion to United
States in 1931.
Canadian gold bullion sent to the United States in December amounted to $6,521,648, making a total of $31,737,899
shipped to that country in 1931, the Dominion Bureau of
Statistics announced on Jan. 20, according to a Canadian
Press account from Ottawa, which also said:
As Great Britain's
The only
country that got bullion was Newfoundland, which
on Abandonment took $150,000other
.
of Gold Began Here—Step Held As Inevit
Besides gold bullion there were exports of raw gold in December
able.
amounting to $398,608. The total for 1931 was $17,682,563. Of this
Sir Josiah Stamp, director of the Bank of Englan
d, in amount the United States got $16,745,196 and Great Britain 9937,387.
addressing a luncheon at Birmingham (Eng.) on Jan.
14,
said there was much mischievous misunderstandi
ng abroad
France Withdrawing $125,000,000 Earmarked Gold
concerning the circumstances in which Britain
departed
from United States—Belgium Also Withdrawing
from the gold standard. The New York "Times
" reports this
Earmarked Gold—Gold Shipments to England.
In a London wireless message, from
which the following
Is also taken:
The tide of gold which is flowing from this country to
"Certain American publicists practically
said it was a craven thing Europe assumed larger proportions on Jan. 20, when $19,for England to have thrown up her
hands and gone off the gold standard 393,100 was withdrawn from the Federal
Reserve Bank for
with the bank rate still at 4%%,
and that to put it up to
distress export to France, Belgium and England. We quote from
rates would have prevented the drain of
gold and even attracted balances,
he asserted.
" the New York "Eveni
ng Post" of Jan. 21, which likewise
Sir Josiah added that he believed
this diagnosis was profoundly wrong. said:
"Not only would rapid
rises have increased the foreign
apprehension
and the desire to get out quickly,"
he said, "but any balances retained
Or attracted by such a method would
have been the source of equal danger
at a very early date.
"Any position maintained by such
measures would have bad to meet
a day of reckoning. The state
of .other countries three months
later
did not in any way show that they
would have postponed their demands
permanently. The passion for liquidity
, which made everything too solid
to move, was already on the world.
"It is probably true to say that
if the politicians had done two
years
ago what many economists urged
as
adopt in time those measures forcedimperative and forced the country to
recently in desperation, our departure from the gold standard might
at any rate have been delayed for a
good time.
"Whether it could have been permanen
tly avoided, having regard to
the terrific fundamental forces at work for
world gold deflation, is, however, open to doubt.
Living Prices and Gold Standard—Fir
st Advance in
England Since September Followed
by Reaction.
The following from London, Jan. 15, is
from the New
York "Times":
British cost of living has shown no serious
increase since the quitting
of the gold standard. In the middle of November
food prices had risen
8% above their level prior to that action.
At the year-end they were
51
/
2% above the September figure, while industria
l materials had risen
9%.
Taking the year as a whole, the heaviest
fall in commodities WU 15.5%
In meat and fish products. Cereals declined 2%,
metals and minerals,
excluding coal, 14%; cotton 10.7% and wool
10.3%. Electrolytic copper
at £33 in August was £12 cheaper than in January,
but part of the
decline was recovered later.
Of the total $12,500,000 was intended for shipment to the Bank of France
and was carried on the steamship President Harding. This is the second
shipment of about the same size which has gone to France on the present
movement and is part of a total withdrawal of about $125,000
,000 which is
to go to Paris in ten consignments as rapidly as fast steamers can be
found
to carry it. A third consignment is scheduled to go out to-morro on
w
the
Europa.
Of the withdrawals yesterday $4,147,800 was designated for the National
Bank of Belgium and $3,250,800 for England. As against the
total of more
than $19,000,000 withdrawn for export, the amount held under
earmark in
the Reserve Bank was decreased by $4,027,200, leaving
the net loss at
$15,365,900.
This, however, does not mean a loss to the country's monetar
y gold stock
for the yellow metal sent to France and Belgium
had been owned by the
national banks of those countries for weeks or months
and was merely stored
in the vaults of the New York Reserve Banks. Conseque
ntly its shipment
has no effect either upon our monetary gold
stock or upon the reserve of
New York banks.
The gold taken by the National Bank of Belgium was
the second withdrawal of the present movement to that country,as shipment
a
of$4,091,000
went to Brussels last Friday [Jan.
151•
These two shipments appear to confirm reports received from London
that the Belgian bank was planning to withdraw a large amount
of its gold
earmarked here.
In its issue of Jan. 20 referring to the movement of gold
to France, the New York "Times" stated:
The Bank of France has arranged to repatriate $125,000
,000 of
which it holds under earmark In the vaults of the Federal Reserve gold
Bank
of New York. The transfer, which is to be made in ten shipment
s of about
$12.500,000 each, will not involve any increase in the gold holdings
of
the
French central bank nor any decrease in the monetary gold
stocks of this
country, which amounted on last Wednesday to $44,457.0
00.000.
In discussing the operation yesterday bankers here
explained that the
Bank of France had conveyed its intention of taking
home its store of earmarked gold last October, when two representatives of
the French bank
were
"Neue Freie Presse" Says Wiser Policy of
this country. Since no loss of gold to this country is
involved, the
Governments actioninwill
be without effect upon the money market, bankers
Is Needed in Better Use of Gold.
said.
The first of the ten shipments was made last
Friday. when the Federal
Reserve Bank of New York announced simultaneously
The following from Vienna, Jan. 15, is from the
that $15.723,600
New York gold had been released from
earmark and $12,269,000 had been
"Times" of Jan. 18:
shipped
to France. The second shipment will leave
to-day
on
the
liner President
In the economic field, the "Neue Freie Presse"
declares in its forecast for Harding and the third Friday on the Europa. Subsequently
the new year, "1932 will be of enormous importan
shipment
s
ce in the history of man- are expected to be made as rapidly as shipping facilities are
available.
kind. Rebuilding of the brokendown economic
situation is conditional on
$4400,000,000 Earmarked Metal.
the reaching of an understanding between the
nations, but it is also necesAbout $400,000,000 gold is set aside in the
sary that governments should gradually
vaults of the Federal Reserve
abandon the economic privileges Bank
under earmark for foreign account, of which
which they have arrogated to themselves,
or else use them in such a way
the Bank of France
owns $125,000,000; the National Bank of
as will do justice to the idea of economic
Belgium Is estimated to hold
developm
nearly as much, and the rest is owned by
It is pointed out as an important influence ent."
other central banks, including
that "large quantities of the
gold which had been immured in America
Central Bank of Switzerland and the Bank of
the Netherlands.
have now been sent to Europe.
None of this gold is Included in the $4,457,0
If common sense should finally prevail,
00,000 of monetary gold stocks
Europe could make better use
of gold reserves accumulated in France
of the United States. The foreign central
and in Western Europe than was
banks for whose account the
earpossible in 1931 under American predomin
marked gold has been set aside regard
the metal as though it were
ance."
lodged
in their own vaults and include It in
their statements of gold reserves.
FINANCIAL CHRONICLE
596
134.
The "Paris-Midi," for instance, sees the United States under the necesA large part of this stock of earmarked gold was built up last September
of creating new dollars without provoking depreciation of the old
and October when,following the suspension of the gold standard in England, sity
a large number of E ropean banks of issue, particularly those of Belgium, ones.
news"Europe manifestly is a bit disturbed by this program," says the
Switzerland, Holland and France, converted their dollar balances into gold
"The American moves go counter to some of America's own ideas
to reassure their own nationals by presenting a strong gold reserve in their paper.
in the mechanism of crises and the virtues of deflation. The shade between
statements. In th two months in question there was a net loss to the gold
of the stopping of deflation and having recourse to inflation seems rather
stocks of the country of $386,700.000 through increases in the amount
vague."
gold earmarked for foreign account.
More Borrowing Seen.
of
In addition to the $125,000.000 of earmarked gold which the Bank
have
to
estimated
Some writers assert that the United States Government is faced with the
France holds in this market, the French bank of issue is
the bulk necessity of borrowing more money before the end of the fiscal year than
about $100,000,000 of deposits with commercial banks and to own
by the the public can supply and hence it will have to resort to monetary inflation.
of the $75,129,000 of deposits and $285,141,000 of acceptances held
nts.
Others say that the present plans will only stimulate production, whereas
Federal Reserve banks for the account of foreign corresponde
what is needed is to stimulate consumption. Still others fear that a rise
France Has Cut Holdings.
in prices in America will cause the dollar to lose part of its purchase power
last fall to and, unless there is a corresponding rise in prices here, it will cause diffiTotal dollar balances of the Bank of France were estimated
repatriated
has
culties to exports. Only the fall of the dollar, it is said, could compensate
amount to $600,000,000, but since then the Bank of France
held in this for that.
some of its funds, little by little, and the total amount now
While there is some fear in financial circles that these alarming reports
market is believed to be substantially less, possibly $400,000,000 or $450,may cause panicky feelings among the public, it is expected the present
000.000.
Intends
France
of
tension will pass off without untoward effect.
It Is the understanding among bankers that the Bank
recalling funds
gradually to reduce the volume of its foreign balances by
process
This
favorable.
is
exchange
of
course
the
from time to time when
in the face of Officials of Bank of France Decline to Comment on
Is largely responsible for the buoyancy of French exchange
Gold Withdrawals from United States.
an unfavorable movement of the French balance of trade.
of France may
Recent reports from Paris have indicated that the Bank
d Press accounts from Paris Jan.20 stated:
here are without
Associate
Bankers
balances.
its
of
foreign
accelerate the repatriation
The opinion has
Officials of the Bank of France declined to comment to-day on the
Information on the subject, but see no cause for concern.
the volume of Bank of withdrawal of French gold from the United States, nor would they say how
been current for some time that a diminution in
much was to be withdrawn. The financial newspaper "L'Information"
t.
France dollar balances would be a healthy developmenbecause the Bank of
the
said
the move was decided upon some time ago with the agreement of
subject
the
on
focused
was
interest
Last October
Hoover and while Federal Reserve Bank of New York,
France, on the eve of Premier Laval's visit to President
Europe was in progress,
the tremendous outflow of gold from this country to
being paid by them on
notified New York banks that the rate of interest
ton Not Disturbed by
In some quarters this Federal Officials at Washing
foreign central bank deposits was unsatisfactory.
withdraw the funds, but
Withdrawal of Gold by France.
action was construed as tantamount to a threat to
bank of issue was
bankers here were unmoved and said that the French
Treasury and State Department officials professed to be
welcome to recall its balances if it cared to.
by the plan for the withdrawal of
undisturbed on Jan. 19
$18,769,000 Shipped This Year.
8125,000,000 gold by France from the United States, conyear have amount.Total shipments of gold to France since the first of this
a technical movement unparcels of United tending that it must be merely
ed to $18,769,000, of which the bulk consisted of small
In reporting this, a
policy.
hoardFrench
general
small
any
connected with
States gold coin taken by French interests to be sold to
some time, and as the
Jan. 19 to the New York "Times"
dispatch
on
ers. Gold hoarding in France has been active for
Washingt
gold coin on demand,
United States is the only country which will.pay out
bar gold from the added:
of any change
small French hoarders, who cannot afford to purchase
They have not been officially advised of the movement or
for United States
premium
Bank of France have been willing to pay a high
toward withdrawals.
attitude
French
in
the
from
France
to
sent
was
gold
0
$362,161,00
no departure from
gold coins. In 1931 a total of
Confidence was expressed that the withdrawal implied
of the
of France and the
this country, exclusive of the gold earmarked here for the account
the policy of co-operation between the Central Bank
Bank of France.
was reflected hi
view
of
Federal Reserve System. This common point
list October to the
From the "Post" of Jan. 20 we take the following:
reports at the time of the visit here of Premier Laval
conversations between French and New York
In addition to the coming transfer to Paris of about $125,000,000 in ear- effect that, as a result of
more withdrawals of gold by France from the
marked gold held here by the Bank ot France,it was learned to-day that the financiers there would be no
consultation between the central banking
prior
without
it
gold
the
which
withdraw
States
to
United
is
planning
also
of
Belgium
Bank
National
has held under earmark in the Federal Reserve Bank here for several months. Interests of both countries.
were too much
It was pointed out that both France and the United States
One estimate from abroad placed the total to be recalled by the Belgian
e of the gold standard to permit withdrawals
central bank as high as 600,000,000 Belgian francs, equivalent at par to Interested in the maintenanc
gold standard in either country.
about $84,000,000, but it was learned here that that estimate is too high, designed to weaken the
though the amount now held by that bank here is not known.
Has No Effect Here.
France Gets South African Gold.
The "Wall Street Journal" of Jan. 19 reported the folThe most important fact is that this gold like that to be recalled by France
has been bought by the Belgian francs some time ago. Its transfer will have lowing from Paris:
United
which is
no effect upon New York banks or the monetary gold stocks of the
It is believed here that the bulk of the South African gold
States. The move merely means a shifting of gold, already owned abroad, shipped to London is coming into the vaults of the Bank of France through
American
to
Brussels.
while
York
sterling
New
from
purchase by the latter with its own holdings of
Evidence that the Belgian bank was moving in that direction was seen and other banks are also buying Indian gold after It has been refined in
last Friday, when $4,091,000 in gold was withdrawn by the bank from the London and are delivering It to the Bank of France. Small shipments are
Belgium
Federal Reserve vaults and shipped to Brussels.
also arriving almost daily from Holland and some is coming from
French Minimize Gold Withdrawal from United States
—No Particular Significance Said to Be Attached
to Repatriation of $125,000,000.
Despite a continued campaign in the Paris press, French
financial and banking circles are displaying full confidence
in American finances generally and the dollar in particular,
said a cablegram Jan. 21 to the New York "Times," from
which we also quote as follows:
much of the fact that the
To-day, for instance, the newspapers make
of gold for the account of the
United States is planning heavy exports
of France is only repatriating
Bank of France. As it happens, the Bank
period of several months.
$125,000,000, which it has had earmarked over a
movement in responsible
No particular significance is attached to the
the Federal Reserve
that
known
well
quarters here, particularly as it is
Bank of France's
Bank would view the gradual withdrawal of all of the
gold holdings with equanimity.
of
France is acting
One thing being emphasized here is that the Bank
as ascertainable,
in accord with the Federal Reserve Bank and, so far
the gold now
has no intention for the present to withdraw more than
of Jan. 15, issued
earmarked. While the Bank of France statement as
is
to-day, shows a drop of about $30.000,000 in foreign holdings, this
understood to be due to the liquidation of its sterling.
Bourse Continues Strong.
The Bourse likewise is demonstrating confidence in the American situation. On the whole, the market has been consistently strong ever shlea
the effect of President Hoover's recent financial moves on Wall Street
began to be reflected here. To-day, despite the bad news from Berlin
and Washington regarding reparations and war debts, the Bourse held
its own. The dollar dropped slightly but it still remains at a safe margin
above the gold point at 25.415 francs.
It would be misleading, however, to say that France is so confident
that she is not keeping the closest watch on American financial developments, and it is a striking fact that all financial writers in the Paris press
display at best doubts and at worst extreme pessimism. The chief reason
Is that they are reflecting the opinion of a certain school of American
thought which is widely quoted here to the effect that the United States
has embarked on a course of inflation which endangers the monetary
system.
United States War Stocks Sale at Fr. 3,168,000,000—
Figure for Disposals in France Covers Up to March
31 1931—French Profit About $40,000,000.
Paris advices to the "Wall Street Journal" of Jan. 19
stated that net sales of American War stocks up to March
31 1931, amounted to Fr. 3,168,000,000, according to a
statement accompanying the 1932 French budget estimates.
The account added:
profits" in an article from
This sum was erroneously described as "net
of November 28.
Paris published in the "Wall Street Journal"
1925, when the special
The official statement shows that up to July,
closed, net sales had brought
account for liquidation of American stocks was
fr.
additional. In
date
304,000.000
that
in fr. 2,864,000,000 and since
been under the charge of what is
the past seven years operations have
Speciaux du Tresor, whose work
called Service d'Apurement des Comptes
resulting from the war. As regards
Is to clear up all the special accounts
bills, settle disputes, Stc.,
collect
to
been
American stocks its tasks has
left to be done. Over half the stocks
and there is now but little business
and at one time as many as
were ceded to ministries and public services,
the service of liquidation. When the special
6.000 persons were employed in
on
charged
was
overdue payments.
account was closed 10% interest
at the price of $400,000.000, 10-year
The stocks were bought.in 1919
at 5% interest. France was absolved
bonds being issued to this amount
0 in 1929 under the war-debt
from specific repayment of the 8400,000,00
interest annually for 10 years. When
agreement, but paid $20,000,000
dollar was worth fr. 7.25, its value increasing
the contract was made, the
de facto at end of 1926 at.about
thereafter until the franc was stabilized
25 to the dollar.
showing
Minister of Finance. Clementel,in July, 1924, made a calculation
at fr. 3,317.that stocks ceded up to that date (practically all) were valued
on the average quarterly market rate,
000,000. or $270,000,000, based
Since the
while net sales were put at fr. 2,593,000,000, or $220,000.000.
but in 1925
middle of 1924, net sales have amounted to fr. 575,000.000,
francs than in
and 1926 the dollar, averaging over 35, represented more
dearer at around
any of the previous years, while after 1926 it was also
$20,000,000,
25. At most, then, the additional net sales can be put at$240,000,000.
making a total net-sale proceeds for the entire business some
France in interest
This sum can be set against the $200,000.000 paid by
reckoned at $40:
on the $400,000,000 loan, and the net profit can then be
JAN.
23 1932.]
FINANCIAL CHRONICLE
000,000, though this makes no allowance for the fact that the loan Played
a role in determining the total of the French war debt. Of course the real
value of the stocks in 1919 was never ascertained since no inventory was
taken, the price finally agreed upon being a compromise between the original
demand of fr. 6.000,000,000 (then roughly 8660,000,000) and the original
offer of fr. 1,500,000,000 (roughly then $160,000,000)•
French Lottery to Aid Jobless.
United Press advices from Paris are taken
from the "Wall Street Journal" of Jan. 15:
as
follows
Alarmed by a further jump of 32,003 in the weekly unemployment
figures, now totaling 246.709, the Chamber of Deputies will hurry along
consideration of the proposed Fr. 200,000,000 lottery to aid jobless. If
the chamber votes the project, it will be rushed through in order to create
work schemes within the next two months.
Market Losses at Paris Last Year—Heaviest
Decline was in Shipping Shares and in Foreign
Securities.
From the New York "Times" we take the following from
Paris Jan. 15:
Stock
The index numbers of average prices on the Bourse during December
make the following comparisons with the November average and with
those for December, 1930:
Dec. Nov. Dec.
Dec. Noe. Dec.
1931. 1931. 1930.
1931. 1931. 1930.
French securities___ 221
043
349 Railroads
99
107
135
Bank shares
169
187
276 Shipping
96
113
211
Insurance shares-- 569
590
764 Gas
451
481
535
Coal mines
209
242
386 Electricity
412
452
560
Other mining
141
153
285 Industrials
234
252
307
Steel shares
71
83
167 Commercialshares__ 162
184
239
Naval construction_ 34
36
49 Colonials
169
192
314
Building materials__ 292
335
468 Foreign securities... 165
411
187
Chemicals
158
181
306
The December index number of fixed-income securities is as follows:
Government 3 per cents 91, compared with 96 In November and 98 in the
preceding December; railroad 3 per cents 93.1, against 94.7 the month
before and 94.9 a year before; industrial 3 per cents 9.19, as compared
respectively with 97.6 and 96.9. The general index of fixed-revenue securities was 90.8 last month; in November it was 94.4 and in December of
1930 it was 94.1.
National Belgian Bank—Losses Avoided in Sterling
Drop by Conversion of Balances to Gold.
Brussels advices as follows are taken from the "Wall
Street Journal" of Jan. 18:
At the close of 1931 the National Bank of Belgium showed roughly as
strong a position as at the end of 1930 but with considerable shifting in
the various sections of both the asset and liability sides of the balance
sheet, due in part to the general depression and in part to the sterling crisis.
Just prior to the fall of the pound from the gold standard, the bank
changed its entire visible foreign exchange portfolio of 4,300,000,000
Belgian francs into gold, thus avoiding the big losses on sterling which
have
been absorbed by the central banks of France and Holland.
Nevertheless, the Belgium Bank still holds sterling values hidden elsewhere
in the
portfolio—on which losses are estimated at 300,000,000
francs. The
entire cover against sight engagements is now shown in gold only
and
amounts to 66% or approximately the same percentage as one year
ago.
597
governments not only were thoroughly informed on the position of the
German Government but also had the benefit of the guidance provided in
the report of the Basle experts.
The decision of the Government, as communicated to the British Amnassador by Dr. Bruening does not come as a surprise to political and
diplomatic circles here. It was recognized that the "temporizing tactics"
indulged In by France in the course of the preliminary negotiations with
the British Government during the past two weeks had provoked no small
measure of irritation, if not disgust, in German official quarters.
The latter believe that following the report of the Basle committee and
Dr. Bruening's recent declaration that Germany has reached the end of her
capacity to pay reparations, the only course now open to Germany is to
demand final action before next July if the reparations incubus, which is
held to be paralyzing German economy and convulsing the internal political
situation, Is to be effectually lifted.
In giving utterance to that statement, the Chancellor, it is argued here.
not only gave expression to what is in the heart and mind of every German
man and woman, but also definitely burned his reparations bridges behind
him.
He is held to have created a precedent which, It is predicted in parliamentary circles, will prevent any future Chancellor from attempting to coax
the Reichstag into voting more money to pay reparations.
In the German opinion it is now up to the creditor governments to challenge the findings of the Basle experts, and as the governments have had
time to contemplate these findings and the technical preparations for the
Lausanne conference have been almost completed there Is no cogent reason,
it is felt here, why the conference cannot proceed.
In view of Its anticipated postponement, however, the German Government will now move that the date for its substitute be fixed for a period
well in advance of the expiration of the Hoover moratorium year.
In connection with the British proposal that the Germans consent to
the extension of the present moratorium until Dec. 15 of this year, it was
reported that Dr. Bruening might have accepted such a transitional solution
on condition that the creditor powers guaranteed an ultimate reparations
settlement at that time, although even such a postponement was not
viewed as a wholly ideal solution.
The proposal that the Hoover year be followed by another 12 months'
respite, however, was frankly suspected as an attempt to prevent any
future scheme for a final solution as it tacitly supported the French demand
for recognition of the Young Plan, for which, It is assumed here, the report
of the Basle experts sounded the death knell.
Semi-official comment on Premier Laval's statement to the French
Chamber of Deputies assumes that he is not as much concerned about
securing peace as about perpetuating the status quo.
The German press gives considerable prominence to the State Department's reply to M. Laval's feeler with respect to the official attitude of the
United States on the extension of the debt moratorium. The reply, it is
observed, was of a nature to be expected, and while It meets with general
approval here it is felt that the reiteration of the American position may only
serve further to stiffen French intransige,ance.
"The door has not been barred—it has only been locked and it is now
Up to Europe to find the key," says the "Mittagsblatt," while other comments refer to "the Americans' cold shoulder."
French Senators Charge Germany Prepares for War.
A cablegram as follows from Paris Jan. 20 is taken from
the New York "Times":
Charges that Germany was secretly preparing a powerful army and a
vast supply of war materials, in definace of the restrictions of the treaty
of Versailles, caused a considerable sensation at to-day's meeting of the
Senate Foreign Affairs Commission.
Senators Bourgeois and Eccard submitted what they claimed to be
documentary evidence supporting these claims, which will be examined
at a later meeting of the commission.
Reduce Belgian National Bank Dividend.
Senator Bourgeois's statement indicated that the Reichswehr was adopta system similar to that used in Germany after the Napoleonic restricA Paris cablegram to the "Wall Street Journal" of Jan. ing
tions, succeeding in training large numbers of non-conuniss oned officers
14 stated that the National Bank of Belgium has declared by rapid rotation of enrolment. He charged that by this means and
by
a dividend of fr.50 for the second half of 1931. The cable- means of secret military schools Germany already had prepared to put a
large army of shock troops into the field.
gram also said:
Among the population, he said, a military spirit was being constantly
In the first half of the year and in both periods of 1930, dividends of
fostered through training athletic organizations and through the continuafr.623,6 were paid. Net income for 1931 was fr.12,800,000, compared
tion as private societies of associations of officers of disbanded regiments.
with fr.16.000,000 In 1930.
In German industry, according to Senator Bourgeois, a rationalized
system for producing armaments bad been achieved so that, on short
notice,
all the munitions Germany might need.
Germany Demands Full Debts Parley—Turns Down the These factories could produce
preparations, he concluded, had been accompanied by systematic
Anglo-French Proposal to Prolong Hoover Mora- propaganda, throughout Germany, fostering the spirit of revenge
for her
torium for a Year—Bans Provisional Accord— defeat in the last war.
statement related principally to the German budget,
Senator
Eccard's
Insists Definite Adjustment Be Undertaken by in which, under various items. he charged, the amounts
camouflaged
Creditor Powers Before July 1.
armaments expenditures, as well as military training costa.
From members of the commission it was learned also that there was
The German Government definitely rejected on Jan. 20 some
discussion of the situation in Italy, where it was charged war stocks
the British-French proposal for a year's extension of the were considerably greater than in 1915 and the regular army had been
reparations moratorium granted to Germany under the supplemented by a militia of 1,100,000 men.
Bourgeois and Eccard last week made sensational revelations
Hoover holiday year and will insist that a definite adjust- ofSenators
secret war preparations in Soviet Russia. All of this material is exment of reparations be undertaken by the creditor powers pected to be used by the French experts at the Geneva disarmament
conference.
before July 1. This is indicated in a cablegram
from Berlin
Jan. 20 to the New York "Times", which further reported:
The official notification of the German position was communicated by Reform of Monetary System of German Reichsbank
Chancellor Bruening to Sir Horace Rumbold,the British Ambassador, when
and Private Banks Proposed by President of
the latter called at the Foreign Office to learn whether Germany would
German Statistical Office—Proposes Expansion of
consent to a 12-month prolongation of the present reparations respite
Note Circulation.
pending final action.
The proposal that the formal conference be deferred to some date next
The "Wall Street Journal" of Jan. 20 announced the
autumn before the allied war debt payments to the United States are due
following from its Paris bureau:
was also rejected.
Herr Wagemann, President of the German Statistical Office,
Bans Provisional Settlement.
has published a plan for the reform of the monetary system of
the Reichsbank
To-day's announcement was supplemented by a positive declaration that and private banks. The
basis of the plan is a proposal that only
large
the German Government would stoutly oppose any sort of provisional ad- bank notes and bankers'deposits be
covered with gold, while the Rm.3,000,justment which sought to evade a final showdown. The Government, it 000,000 of small bank
notes which are not used for production
purposes
was said, had reached the conclusion, supported by the Basle experts, that or international transactions will
be covered by government bonds.
the resumption of payments under the Young Plan, including the nonFrom the New York "Times" we take the following
postponable annuities. after July 1 was no longer within the capacity of
from
German economy.
Berlin Jan. 20:
Diplomatic and political circles in Berlin are now convinced that the
Professor Ernst Wagemann, head of the Federal Bureau
of Statistics,
German official position as enunciated by Dr. Bruening definitely disposes has surprised governmental and
financial circles with the
publication of
of the Lausanne conference, although it was suggested at the Foreign Office a program for a comprehensive reform of the
German currency and credit
that there was no reason why it could not be held next week as the interested system along Anglo-American lines.
598
FINANCIAL CHRONICLE
[VOL. 184.
As Professor Wagemann, on the basis of his proposals, advocated a
certain expansion of note circulation, the government, anxious to forestall
the impression that it was considering any inflationary measures, immediately issued a statement characterizing the project as a private scientific
paper which would not for the time being be made the basis for governmental reform plans.
The chief point in Dr. Wagemann's proposals for reform of the Reichsbank law is a demand that notes of denominations up to 50 marks [about
$121 shall no longer be covered by gold, as they serve only the daily needs
of the consumer within Germany. A gold or foreign-exchange coverage
of 40 marks per 1,000 of the deposits in all banks which could be called
off at less than thirty days' notice would be required.
Dr. Hermann Dietrich, Minister of Finance, stated today that the
government "Is considering certain ideas with respect to the banks which
represent something entirely new." This remark is understood to refer
to plans for the mobilization of the frozen assets, constantly threatening
the liquidity of the banks.
million. Extraordinary revenue was 26 million; extraordinary expenditures, 137 million.
Although this reflects a fairly balanced budget for the fiscal year, the
inclusion of deficits carried over from the preceding year would bring the
total existing deficit to 1,031 million marks.
enormous losses on securities, a decree recently issued permits companies
to strike a mean between the average prices during the entire month of
June and those during the period in September when the Boerse was allowed
to remain open, and to estimate the value of their holdings accordingly
for purposes of statements for Sept. 30 and Dec. 31. Book values, however, must not be higher than those adopted in the preceding balance sheets.
Furthermore, companies are not permitted to cover, out of profits or
reserves, large losses incurred through depreciation of stocks prior to June.
They must announce their losses but can distribute them over the next
five years by establishing a special entwerlungskonto or depreciation
account.
The manipulation tax in operation since 1926, chargeable on most
goods imported into Poland, will now be as follows, (former charges in
parentheses):
On ordinary commercial shipments, 11% of the duty (10%); on parcel
post and express shipments, 22% of the duty (20%).
000.000 in 1930. Exports in 1931 totaled rm. 9,600,000,000 and imports
rm. 6,725,000,000.
Against 1930, imports were down 34%, while exports lost only 20%.
A German governmental bureau estimates that on the basis of volume,
exports in 1931 were down only 8%. Exports of steel, electrical equipment and chemicals were practically unchanged from 1930.
Germany's exports in December totaled rm. 738,000.000 and imports
rm.488,000,000, leaving a surplus of rm. 250,000,000, which, while smaller
than in November, is considered as a favorable showing.
In connection with the country's export trade it is significant that a large
part brought no profits but was made necessary by the enormous decrease
In interior sales.
For the first half of 1931 the export surplus totaled rm. 961,000,000.
whereas in the second half, when conditions were less favorable, a surplus
of rm. 1,914,000.000 was achieved. A considerable portion of exports
was made against credit and this should improve the devisen situation
only this year.
Toward the close of last year Hungary declared a moratorium on most
of its foreign debts, but excepted the short-term loans of foreign bankers, at
the same time saying that it would seek to obtain a "standstill" agreement
regarding these credits for six months.
The amount of American short-term credits to Hungary Is estimated
at approximately $35,000,000. of which about $18,000,000 is said to be in
the form of acceptance credits. The total of short-term banking advances
made to Hungary is estimated at $90,000,000. exclusive of the $20,000,000
central banking credit to the Hungarian National Bank late last summer,
in which the Federal Reserve Banks here are said to have participated
to the extent of about $4,000.000.
As a result of the failure of the bankers to carry through the "standstill" agreement, It is understood that the American banks have refused
to honor checks drawn upon them by the Hungarian banks. It is possible
that some of the American banks have balances in Hungary, which, as
a result of the moratorium, they have not been permitted to draw upon.
Last summer when Germany restricted the withdrawal of foreign funds,
some of the American banks refused to honor the drafts of their German
correspondents for a few days on the ground that since their own balances
with German banks were tied up they were not obligated to release German
balances in New York banks. The majority of banks, in view of conditions then existing, disapproved of this step and it was quickly abandoned.
American investments and credits in Hungary are estimated to total
about $179,000,000, including 5134.400,000 of Government and corporate
securities. Nearly all of these, except the short-term credits, are in the
hands of private investors. On Dec. 22 the Hungarian Government
announced that the payment of interest on these obligations, except the
short-term credits, would be deferred for a year.
Last November, Premier Karolyi asked American. British and other
bankers for a reduction on interest rates on Hungary's foreign debts
He said that the interest rates on the foreign loans averaged about 8%
annually and that the country could carry on for not more than three
months on that basis.
According to data supplied in connection with the investigation last
fall by the League of Nations of Hungary's finances, the total foreign
debt of Hungary was placed at $715,000,000, of which $455,000,000 is for
a long-term and $260,000,000 for a medium or short-term. Of the latter,
It was estimated that about $175,000,000 would fall due within 12 months.
Increase in Germany's Floating Debt,
Associated Press ad-vices from Berlin, Jan. 12, said:
Germany's floating debt rose from 1,746,700,000 marks on Nov. 30 to
1,912,600,000 marks on Dec. 31 1931, according to official statistics
published to-day.
Polish Customs Manipulation Tax Increased by One
Tenth.
Effective Jan. 14 1931, the customs clearance tax on goods
imported into Poland was increased by one-tenth, says a
German Decree Affecting Balance Sheets.
radiogram from Commercial Attache Clayton Lane, Warsaw,
Advices as follows from Berlin are taken from the "Wall to the Department of Commerce. The Department on
Street Journal" of Jan. 20:
In order to enable annual balance sheets to be drawn up without showing Jan. 18 likewise said:
Committee of New York Bankers Abandons Debt Parley
with Hungary—Unable to Pay Interest on Short'
Term Loans.
The committee of New York bankers in charge of working
out
a "standstill" agreement between the American creditor
1931
in
Record—Imports
Germany's Export Surplus at
Less by Rm. 2,875,000,000 Than Sales Outside— banks and the Hungarian debtor banks has abandoned
farther efforts along this line because the Hungarian banks
Trade Volume Off.
have notified them that they would not have sufficient
From its Berlin bureau the "Wall Street Journal" of
to pay the interest and commissions on the shortexchange
following:
the
Jan. 20 reported
The New York "Times"
Germany in 1931 had an export trade balance of rm. 2,875.000,000, the term debts due American bankers.
highest ever recorded, and compared with an export balance of rm. 1,643,- of Jan. 17, authority for the foregoing further said:
Credit Position Held Artificial in Berlin—Bankers
Consider Government Action Would Cause Capital
Export Under Ordinary Circumstances.
The following from Berlin, Jan. 15, is from the New York
'Times":
As a consequence, first of the quarterly tax payments and afterward of
the mid-month settlement, demand for money at Berlin has increased.
Day loans on Thursday went at 7%@8%%. Banks consider that the
Government's new enforced reduction of interest rates on deposits will
cause a movement of money out of the short-term market and into the
capital market. The view taken is that this movement and the simultaneous reduction of interest rates on bank credits cannot be long maintained.
The system, it is felt, is practicable even now only because Germany is
divorced from the international credit market. No new credits are coming
In and old credits cannot go out. If exports of money were permitted,
German depositors dissatisfied with the compulsory reduction in home
rates would seek better markets abroad.
Strength in Stocks Continues at Berlin—Some Shares League of Nations to Aid Hungary—Finance Minister
Above Mid-September Prices, When Boerse Closed.
Indicates Committee Will Make Deal with Creditors.
The unofficial curb market for stocks has been firm at
From the "Times" we quote the following from Budapest,
Berlin during the whole week, potash and electrical shares
leading said a Berlin message Jan. 15 to the New York Jan. 20:
Finance Minister Koranyi of Hungary, on his return to Budapest from
"Times," which also had the following to say:
In bonds the tendency was undecided. Early in the week slight declines
predominated, but the 6% inscribed loan of the Reich was freely bought.
Prices to-day on the curb market were as follows, compared with those
of a week ago and with those of Sept. 18, just before the official Boerse
closed down:
Jan.
Jan. Jan. Jan.
a:
jfg:
Se1
18.
8.
5.
92
84
87
Farbenindustrie—__
103
85
Reichsbank
87
19
17
61 Vereinigte Stahlwerke 17
41
41
Deutsche Bank
31
87
40
Tubes
Mannesmann
25
Hamburg-America_ 23
21
62
63
44 Asehersleben Potash 74
General Electricity- 34
33
101
115
117
Siemens & Halske
Rhenish Westphalian Electricity sold on Friday at 62, Schultheiss
Brewery at 42.
Geneva last night, said the proposed Financial Committee of the League
of Nations to aid Hungarian foreign creditors would form a national financial
committee which would send delegates to an international committee to
be formed under the guidance of neutral experts.
He said it was impossible for Hungary to negotiate with each creditor.
The international committee would negotiate with Hungary a general
settlement of her debts.
M. Koranyi said the proposal was sympathetically received by the
League.
The Reichsbank's ordinary revenue during the completed eight months
of the financial year were 5,909 million marks; expenditure was 5,818
with $1,050,000 in 1930. To protect the reserves, the dividend
duced from 7 to 5%.
Commercial Bank of Pest, Hungarian Institution
Doubles Reserves.
Hungary's biggest commercial bank, the Commercial
German Budget Balances—But Heavy Accumulated Bank of Pest, doubled its reserves during 1931 and increased
Deficit for Previous Years Remains.
deposits and current accounts by 21% said Associated Press
An account as follows from Berlin, Jan. 15, is taken from accounts Jan. 21 from Budapest, which also stated:
The net earnings decreased slightly. being $1,000,000. as compared
the New York "Times":
was re-
JAN. 23
1932.]
FINANCIAL CHRONICLE
599
An- Bogota Paper Scores Loans in ColombiallAttacking
nounced on Short-Term Debts.
United States.
Advices as follows from Vienna, Jan. 20 are from the
Special correspondence from Bogota, Jan. 17, published
New York "Times":
in the New York "Times" of Jan. 21 said:
A fresh postponement of the settlement of foreign short-term debts of
"How We Were Deceived" is the title of an editorial in "El Tiempo"
all Austrian banks except the Creditanstalt amounting to $23,000,000 regarding
Colombian foreign loans which have recently received the attenAustria Delays Payments—Further Postponement
was announced to-night.
The National Bank, which three weeks ago notified foreign creditors
that Austrian banks were unable to continue their quarterly amortization
payments of 16% of the sums due then, later agreed to a continuance
of these payments, which, however, were subsequently reduced from
15 to 5%. But it announced to-night that it was unable to sanction this
agreement just reached between the Austrian banks and their foreign
creditors.
The National Bank is supporting its action by a reference to the insistence
of the League of Nations on the necessity of maintaining Austria's reserves
in foreign exchange and says it must press for a further reduction in the
amortization payments.
Earlier advices from Vienna (Jan. 13) to the "Times"
said:
As a result of protests from the Vienna banks, which feared injury to
their credit abroad, the Austrian National Bank's veto on further amortization payments on their short- and middle-term obligations to American and
English bankers was modified to-day to permit them to repay 5% of the
principal every three months.
The original arrangement was that the sum, which now amounts to
$20,000.000, would be repaid at the rate of 15 to 20% each quarter. The
Austrian National Bank, fearing a further decrease of its note issue cover.
now only a fraction above the minimum necessary to keep the currency
on the gold standard, had ordered the other banks to continue paying
only the interest, which would have amounted to a partial moratorium.
Call Vienna Stock Market "Completely Isolated"—
Government's Restrictive Measures Declared to Be
Preventing Traffic with Neighbor States.
Under date of Jan. 15 a Vienna message to the New York
"Times" stated:
After a timid show ofimprovement shortly before the year-end • the Vienna
Stock Market relapsed into complete stagnation. This is ascribed to
the fact that the rigid provisions regarding trade in foreign currencies
have now made traffic with neighboring States virtually impossible. Many
financial observers go so far as to say that the Vienna market is now absoutely isolated. Improvement in that regard is considered improbable in
the near future. Contrary to expectations, the strict ordinances concerning foreign exchange bills have not thus far led to restriction of imports
into Austria, from which it would seem that the foreign sellers, owing to
thergeneral stagnation of trade, are ready to deliver large quantities of
goods on credit.
a.• Austria has vetoed the plan of private clearing between importers and
exporters, and, moreover, the Government plans to prohibit importations
of luxury goods of all kinds and from all countries. For this the Government hopes to obtain international consent at Geneva for the purpose of
avoiding commercial complications.
Swedish Workers Vote to Reject Wage Cut.
Workers in the iron and steel and mechanical workshops
have voted to reject the proposals offered by the mediation
commission for wage-cuts averaging 3%,according to a cable
to the Commerce Department from Acting Commercial Attache H. C. McLean,Stockholm. Under date of Jan. 12 the
Department of Commerce also says:
Employers have announced that a reduction of about 12% will be made
effective in the iron and steel industry on January 17, the cable states, as
Well as in the mechanical workshops.
Approximately 90,000 workers are affected by the wage decision, and it
is stated in commercial circles here that partial strikes are probable.
Currency Restrictions Imposed by Czecho-Slovakia
Finance Ministry.
From Prague a cablegram Jan. 20 to the New York
"Times" stated:
tion of the Senate Finance Committee's investigation of Latin-American
loans floated in the United States.
After referring to the loans as a sad inheritance from past administrations,
both as to their enormous amount and the stupid and absurd manner in
which they were contracted, the paper deplores the "audacity of the lenders
and the lamentable ignorance of the Colombian negotiators." It also sees
the danger to the sovereignty of the country in some of the contracts.
The contracts, according to "El Tiempo," grant the lenders the right to
collect the government revenues in case of delay in payments.
"These are things they are accustomed to doing in Santo Domingo and
Haiti" the editorial says, "but never with a free and responsible people
like ours."
This is one of the things,"El Tiempo" believes, that the proponents of a
moratorium on foreign debts have not considered, and it asks how things
would be if the creditors demanded the execution of such clauses of the
contracts and Colombians should see employees of the Americans collecting
revenues pledged for the service of the debts.
President Olaya Herrera Revises Colombian Taxes—
Decrees Increased Levies.
The following Bogota cablegram Jan. 21 is from the New
York "Times":
President Olaya Herrera has revised his revenue decree of Dec. 18, but
the new form continues the stamp, consular and sales taxes, including the
1% tax on foreign exchange transactions. It creates a new sales tax of
1 cent a package on foreign cigarettes and the $1 tax on automobile tires is
increased 50%, and 100% on tires selling above 20 and 50 pesos,
respectively.
It reduces personal exemptions on income taxes from 1,500, 1,200 and
360 pesos for married couples, bachelors and minor dependents, respectively, to 900. 600 and 200, respectively. The Bank of the Republic's
7% discount rate to member banks and the National Government was
reduced to-day.
Bank of Republic (Colombia) Reduces Rates on Loans.
From Bogota, Jan. 21 Associated Press advices stated:
The Banco de Republica lowered its rediscount rate on commercial loans
from 7 to 6% to-day and its rate on agricultural loans from 6 to 5%•
Argentina Imposes New Drastic Taxes—Levies on Incomes, Property and Business Expected to Balance
of 1%
Nation's Budget—Imposts Range From
to 7% for Emergency Five Years.
The Argentine Government imposed emergency taxes on
incomes, property and business on Jan. 19 in one of the most
drastic steps of Argentina's financial history said Associated
Press advices from Buenos Aires, Jan. 19, which, as given
in New York "Times," continued:
The taxes were imposed to balance the country's budget, put its finances
on a permanently sound basis and silence talk of a moratorium.
Shifting from customs duties, upon which the government has depended
for revenue for more than half a century, the Cabinet of Provisional
President Uriburu issued a decree for taxes ranging from one-half of 1%
to 7% on salaries, lands, property, securities, commerce and industry for an
emergency period of five years.
Special graduated taxes on all personal incomes over 25,000 pesos—
about $6,500—were imposed, as well an increased levies on gasoline,
insurance, matches,cigarettes, tobacco,business licenses, perfume, pharmaceutical products and foreign exchange transactions.
Taxes Retroactive From Jan. 1.
Enrique Uriburu, Minister of Finance, said the taxes were retroactive
from Jan. 1.
Argentina is a rich country and a moratorium was unthinkable, he said,
The Czecho-Slovak Finance Ministry has announced further currency but a balanced budget was essential. The new tax program, he added, not
restrictions. As a result of the adverse effect of the financial restrictions only would assure this but should yield a surplus for reduction of the
of her neighbors on Czecho-Slovak trade the Ministry said it had become floating debt.
The income taxes are divided into two groups, of which the first embraces
necessary to restrict allotment of foreign exchange for import payments.
stocks, bonds,
All future applications for foreign exchange must be for vital neces- four classes: Income on lands and property, income on
saries, such as foodstuffs, and will be subject to rigorous examination bank deposits and similar "movable capital:" income of commerce and
industry
and
salaries.
by a commission of experts, who will forward their recommendations to
Farm lands are taxed 6% or 4% annually, depending on whether they
the national bank.
are operated by tenants or the owners.
City properties are taxed 6%, "movable capital" 6%,revenues from
Yugoslavian Default on Loans Is Denied—Consulate commerce and industry 5%,salaries one-half of 1% to 4%, depending on
General Says Country Has Paid All Obligations
with a minimum income tax of 1.75 pesos—now 45 cents—per
month.
on Dates Due.
In the second income tax group the taxes are graduated from one-half
In its issue of Jan. 19 the New York "Times" under of 1% on incomes above 25,000 pesos to 7% on incomes over 250,000 pesos
the above head said:
The following statement was forwarded to the New York "Times"yesterday by the Consulate General of Yugoslavia in New York:
It "The Consulate General of the Kingdom of Yugoslavia hereby officially
denies that Yugoslavia has been in default on its loan annuities, as stated
in an article published by the New York "Times" on Jan. 9 1932, 13. 6.
"Furthermore, it is hereby officially denied that Yugoslavia is 'on the
brink of default,' as stated in a wireless dispatch dated Jan. 17 1932,
sent from Vienna, as published in the New York "Times" Jan. 18 1932,
under the title of'Four European Nations on Brink of Default.'
"The Kingdom of Yugoslavia has paid until now all its loan obligations
and has not defaulted on any, as stated by the bankers of Yugoslavia
in New York.
"Concerning the rumors that the State Mortgage Bank of the Kingdom of Yugoslavia, Belgrade, had defaulted on its annuities, the Consulate General officially certifies that the annuity of the said bank due in
October 1931, has been promptly paid, and that the next payment is
due April 1 1932.
"RADOYE YANKOVITCH, Consul General."
annually.
Within the Federal capital (Buenos Aires) an additional territorial surtax oftwo mills is levied on properties, according to the existing assessments.
The taxes on stipulated commodities vary. The announcement did not
state specific percentages and failed to name all the affected products,
which are soon to be listed specifically. The present temporary 10%
tariff surtax is continued on all importations.
Deficit for 1932 Threatened,
The Government announced that the budget had not been balanced in
1931 and there would have been a deficit this year if the new measure had
not been taken immediately. It said expenses had been cut sharply and
the program of public works for 1932 reduced to $13,000,000, which could
easily be financed. The 1931 deficit was said to have been $32,000,000.
Recommendations of the League of Nations and the International
Chamber of Commerce were heeded in the drafting of the tax program to
avoid double charges and to place the tax at the source of income.
"Thanks to these taxes," Finance Minister Uriburu said, "the 1932
budget, which will be ready within a few days, will be balanced.
leaving a
surplus. The total revenues are calculated at 830,000,000
pesos ($214,-
600
FINANCIAL CHRONICLE
[VOL. 134.
000,000) and expenditures at about the same amount, including 50,000,000 children at school in European countries—are finding it exceedingly difficult
pesos for public works and 5,000,000 pesos on armament contracts to which to obtain them. Recently many of them were unable to buy a single draft
the country already is committed, and payments of principal and interest at the Banco de Costa Rica, in spite of their urgent need to send money
on foreign debts."
abroad.
Services on the debts payable in dollars and pounds were computed for
"According to information received from persons, who approached the
budget purposes at the present rate of foreign exchange, although the Banco de Costa Rica, with regard to the purchasing of drafts in liras,
Government said it hoped it would improve.
dollars and sterling, they were told that they must pay for the drafts in
The tax on personal incomes does not apply to industries or corporations, dollars or in the currency of the country on which they wanted to draw, as
but to individuals only.
the bank would not accept Costa Rican currency."
those who need them, the only way to obtain dollars is to buy them
Further Buenos Aires advices Jan. 20 to the "Times" in For
the street,from speculators, and pay 4.35 colones for each dollar
stated:
Local opinion on yesterday's decree for sharply increased taxation
appeared mainly favorable to-day. Such a step is regarded as preferable
to an emission of currency, which President-elect Agustin P. Justo asserts
his new government will not allow.
There is some dissatisfaction, nevertheless, and Victor M.Molina,former
Minister of Finance, said to-day he believed it improbable Congress would
confirm the new program without drastic revisions.
Since there is general inactivity in all lines of commerce, it is not clear
whence Argentina's current financial needs will be obtained and no credence
is placed in the rumored offers of a French loan. An effort will be made
to restrict gold shipments, with the government striving to increase the
offerings of export bills.
Finance Minister Enrique Uriburu explained to-day that the new program would not only insure a balanced budget for 1932 but would permit
Argentina to avoid the two evils of inflation or a moratorium on foreign
debts.
"This effort," he said, "signifies the national mobilization of our moral
and material resources in a direct drive for the consolidation of Argentina's
credit and prestige."
Haiti to Refund American Loan to End Control tiy
United States.
The following (Associated Press) from Washington yesterday (Jan. 22) is from the New York "Sun":
Minister Bellegarde of Haiti said to-day that his Government had proposed refunding its American loan to end control by the United States
Government over Haitian finances.
The Minister said a note on the subject had been sent to the State Department, but that he could not make public its text.
Reports here said the chief contention of the note was that a "financial
dictatorship- was being maintained in the interest of New York bankers
and American holders of Haitian bonds and that Haiti proposed to set up
a fiscal agency without American supervision or else to refund its loan
before it was due.
M. Bellegarde said the note had been sent to the State Department in
answer to references made to Haitian treaty obligations by President
Hoover in his recent message to Congress.
Peru Gives President Extraordinary Power—New Law
Provides for Suppression of Anti-Government Out-
India Reported to Have Shipped $100,000,000 in
Gold to Great Britain Since Gold Standard was
breaks, Including Strikes.
Abandoned by Latter.
From Litna (Peru) Jan. 9 Associated Press advices pubAssociated Press advices from Bombay, Jan. 16, said:
lished in the New York "Times" said:
India has shipped more than $100,000,000 worth of gold to London
President Luis M. Sanchez Cerro received extraordinary powers from since Great Britain abandoned the gold standard on Sept. 21, and if shipthe Assembly today to suppress any anti-government outbreak in Peru, ments are continued at the present rate, they are expected to double last
year's entire world output of gold, which was approximately $420,000,000.
such as a strike called for next .Monday.
Despite adverse trade conditions created by the disturbed political
The new law, intended for the preservation of public order, was Passed
by the National Assembly after several hours of heated debate, in which situation in India, more than $9,000,000 in gold was shipped to London
accusations were exchanged between the Government and its Opposition. to-day. This steady outgo is regarded by financiers as an important conPatterned after Spain's "law for the defense of the republic," the measure tributing factor to the recent rise in the pound sterling.
More than in any other country in the world, gold is the standard of
placed in the hands of the Peruvian Executive the necessary means, the
Government said, to maintain order and guarantee social peace.
value in India. All classes hoard it in the form of settings for jewelry, coins
Members of the Aprista (Opposition) party and others who opposed the and other valuables, and banking systems are scarcely known in the Indian
legislation described it as -dictated by -vengeance and political hatred."
villages. Whenever an Indian in the interior wants paper money he ships
his articles of gold to the government mint at Bombay, where they are
melted and coined.
Ecuador Feels Gold Drain—Newspapers Disturbed but
The enormous importance of the part gold plays in India's life caused
Mahatma Gandhi to appeal to the nation just before his recent imprisonOppose Suspension of Standard.
ment not to export the metal.
A cablegram as follows from Guayaquil (Ecuador) Jan. 21
"If the outflow of gold continues," he warned, "India soon will become
bankrupt. We shall therefore be fools if we part with our gold in exchange
appeared in the New York "Times":
The newspapers Universo and Commercio announce there is grave peril for rupees or notes whose future value promises to depreciate toward zero
in the loss by the Central Bank of 7,000,000 sucres from the gold reserve as did the value of the German mark.
"England is bankrupt and she is sure to pounce upon our gold reserves
lathe last six months (a sucre is nominally 48.7 cents), but oppose suggesby all means, fair or foul. Moreover, we are at war with England and we
tions for the suspension of the gold standard.
"We observe that the idea of suspension of the gold standard gains are not bound to help her at present."
ground in popular opinion." says Univers°, "but we hold this to be a
new error in the present circumstances.
India Gold Tabulated—Statement Shows Total of
"The government, the bankers and the economists should search for
£40,000,000 in Reserve Dec. 31.
a remedy, escaping from the ideas of the alleged experts which caused
the disaster."
The following from London, Jan. 12 is from the New York
"Evening Post":
The India Office statement showing the form of the balance of reserve
Bolivia Again Cuts Estimate of Income—Government
held Dec. 31 1931. indicates £27,676,200 gold in India, £2,152,334 gold
Asks Congress to Authorize 15,000,000 Boliviano In
the Bank.of England and more than £10,000,000 in securities, making a
Loan to Meet 1932 Deficit.
total of £40,000,000.
A further reduction of 25% in the budget estimate of
India Cuts Debt £11,213,428.
Bolivia's 1932 income was revealed in a message to ConFrom
the
"Wall Street Journal" of Jan. 14 we quote the
gress on Jan. 90, said a La Paz (Bolivia) cablegram to the
following from London:
New York "Times", which also stated:
Without allowing for any payments on the foreign debt, expenses are
expected to amount to 34,870.657 bolivianos (the boliviano is worth 38.0
cents at par), of which 31,398,657 are on the budget. The estimate of income is reduced from 25,642,158 to about 19,350,000 bolivianos, which
would leave a deficit of 15,520,657 bolivianos, aside from the foreign debt
service, which calls for payments of 23,316,380 bolivianos.
Congress already has under consideration a proposal for a loan of 10,000,000 bolivianos, which the message points out is not enough and suggests
that a loan of 15,000.000 be authorized instaed.
The message concludes that circumstances force the country to resort to
extraordinary resources to meet its obligations.
The previous estimate showed expectation of 1932 income as follows:
Sale of national properties, 3,000.000 bolivianos: postal and telegraphic
receipts, 3,932,584: direct and indirect taxation, 20,897,851; miscellaneous,
2,808.723.
The Indian Government is repaying in cash on Friday £11,213,428 representing the outstanding balance of a £22,500,000 5),6% sterling loan issued
in 1921-1922 and due in 1932. The outstanding amount of the loan was
reduced to about E15,000,000 by a conversion operation last February,
and to the present amount by sinking fund purchases.
The repayment is being effected without recourse to fresh borrowing,
more than £25,000,000 having been remitted by the Indian Government to
the Secretary of State in London during the last two months, and accomplished largely by export of gold from India since British suspension of the
gold standard. The effect of the redemption will have been to reduce
India's short term debt in London by £17,500,000.
For the previous two years to May last, India was a heavy borrower in
the London market, raising £47,000,000 owing to the flight of capital from
India caused by political factors. Budgetary retrenchment, coupled with
a turn in financial affairs in India since the suspension of gold, and the
improved outlook since the banning of Congressional activities, has considerably bettered India's credit, and has advanced the price of Indian
loans, besides affording support to sterling.
Restrictions on Foreign Exchange in Costa Rica Said
to Have Resulted in Speculation and Drop in
Egypt's Trade Disturbed by Currency Depreciation.
Value of Colon.
In its issue of Jan. 12, the New York "Times" published
Under date of Jan. 15 an announcement by the Departthe following special correspondence dated Jan. 12:
ment of Commerce at Washington, said:
Confusion regarding restrictions on exchange and the possibility of an
The decline in sterling, with which the Egyptian pound is linked', had an
issue of paper money may be the cause of a drop in the value of the colon, adverse effect on general trade during the fourth quarter of 1931, according
the monetary unit of Costa Rica, which has been stabilized at 25 cents in to Commercial Attache Ralph F. Chesbrough, Cairo, in a report to the
American gold for many years as the result of the operation of the so-called Department of Commerce. This depreciation was followed by an adjust"caja de conversion," an exchange deposit. The exchange business may ment in cotton prices, and confusion among importers with obligations
again be taken over by street runners and speculators who did a thriving maturing in stable currencies. The situation was further aggravated by
business before stabilization. Recent so-called curb quotations show the the lack of seasonal improvement and the poor tourist season, with a result-colon at 4.35 for each dollar.
ant continued high level of bankruptcies and protested notes. Public
Some of the difficulties encountered at present are described in the finances, however, continued satisfactory, with customs revenues aug"Diario de Costa Rica," as follows:
mented by a higher tariff. Despite the currency depreciation, the agree"Merchants and parents wishing to send drafts abroad—the former to ment linking sterling with the Egyptian pound was renewed. Foreign
pay for merchandise ordered, and the latter for educational fees for their trade turnover fell off sharply, with a large reduction in the import excess.
JAN. 23 1932.]
FINANCIAL CHRONICLE
601
The total note issue outstanding amounts to $122,000,000,
Banks Help China in Financial Crisis—Moratorium
and after
deducting $29,000,000 for notes issued by other banks the amount issued
on Domestic Loan Interest Avoided—Resignation by the Bank
of China is $93.000.000. The collateral of 40% amounts
to $37,000,000, leaving a cash surplus of $11,000,000.
of Finance Minister—Three Provinces Included.
The Chinese National Government announced at Nanking
on Jan. 18 that it had decided not to declare a moratorium Study of Latin-American Credits by Committee on
Inter-American Relations and National Foreign
on interest on domestic loans as a means of easing the
Trade Council—Business Conference on Exchange
Ministry's financial troubles. Associated Press advices
Situation To Be Held.
from Nanking to the New York "Evening Post," from
which we quote, went on to say:
Announcement was made on Jan. 17 by General Palmer E.
This decision was reached,it was said, as a result of the action of Chicago Pierce, of the Standard Oil Co.
of N. J., Chairman of the
bankers in Shanghai in extending further assistance to the Government,
Committee on Inter-American Relations, that in view of
enabling it to meet the most urgent of its financial demands.
Shanghai advices Jan. 14 to the New York "Times" the current state of United States trade with Latin America
which has declined almost to pre-war level, the Committee
said:
It became known to-day that the former Nanking Government, headed on Inter-American Relations and the National Foreign Trade
by General Chiang Kai-shek, not only cleaned out the National Treasury Council, composed of representatives of all factors of combut obligated the new regime to pay a considerable amount of post-dated merce, including
finance, transportation and communicabills. At present the National Treasury is empty.
tions, from every part of the United States are providing
Chinese bankers in Shanghai to-day came to the rescue. They
are
understood to have agreed to finance the Government over the present for a continuing study of Latin American commercial,
inemergency, which is likely to last until the Chinese New Year
begins on vestment, and public credits. General Pierce said:
Feb. 6, but the bankers demanded definite terms, which
were accepted.
Moratorium Plan Fought.
The financiers strongly opposed a proposal for a moratorium
on domestic
bond payments, which, it was held, would react unfavorably
upon the
banking situation. Most Chinese banks are heavy investors
in Government bonds, which make up a substantial part of their
reserves against
note issues. The amount of assistance given to the Government
by the
bankers is not known.
Provincial leaders are threatening to retain the customs, salt and
tobacco
revenues to defray local expenses, but such retention
would threaten the
service of foreign loans. Canton is reported to-night to
be retaining
customs revenues for the redemption of military bonds,while other
provinces
are reported to have reached a similar decision..
The Government's reported intention to declare a moratorium
created
a storm of protest in banking and business circles and many telegrams
were dispatched to Nanking in protest against an act, which it was
asserted, would bring China to the verge of chaos.
Reports that the Government proposed to approprate sinking funds
for other purposes caused serious repercussions on the market and resulted in a strong protest from the Sinking Fund Commission, which
asserted that, in that event, Government bonds would become valueless
paper with disastrous consequences that would be nation-wide.
The Sinking Fund Commission, which is the custodian of sinking funds
for virtually all loan issues of the Government, pointed out that the many
bond issues of former Governments had been entrusted to the Commission
and that never once had it defaulted in the redemption of capital or the
payment of interest, as the Commission was pledged to do its utmost
to maintain the national credit.
Bond Market Closed.
The domestic bond market continues closed, but is to open
to-morrow.
"The purpose is not only to discover what measures leading to improvement may be undertaken now, but also to build up a better understanding
In the United States and the countries of Latin America of their mutual
Interests and relationships tending to guard against future recurrence of
such a situation as the present.
"The first step will be the calling of a business conference on the exchange
situation. There is, at present, no good method of securing and compiling
the facts necessary to comprehensive understanding of this situation, which
Is obviously due, in chief part to the subnormal purchasing power of all
countries.
"The Committee will endeavor to find some means by which the adverse
effect of this situation may be relieved. It is a difficult problem, but
possibly co-operation among exporters may help.
"In a number of Latin American countries It is Impossible to obtain
United States dollar exchange to remit in payment for imports from the
United States. We are interested not only in a more normal flow of
exports but also in a recovery in importation of those Latin American
products always consumed here. The power of Latin American countries
to buy and consume our goods proceeds from the sales they can make of
their own products abroad. This basically affects their ability to settle
their foreign obligations.
"The resources of the Latin American countries, the industry and intelligence of their people, and the superiority of present day communication
with all world markets leave no doubt of the importance of the sister
republics in the recovery which we hope will not be long deferred.
"This Committee feels that intensive study of the various phases of the
problem of recovery is most timely.
"At present there is no central point at which the whole field of Latin
American credit investigation is co-ordinated, and it is believed that the
work proposed will do much to clarify a confused situation. The Committee
on Inter-American Relations is desirous of developing close contact with
commercial interests and bondholders with a view to bringing about an
interchange of veiws which will form the basis for future action."
A wireless message to the "Times" from Shanghai on
Jan. 18 stated that it is reported the Government wants
The Committee on Inter-American Relations has offices
assistance of between $1,250,000 and $1,500,000 monthly.
The Government also wants an immediate loan of about at 1 Hanover Square, New York City. Its membership is:
Chairman, General Palmer E. Pierce, Standard Oil Co. (N. .T.);
$2,500,000.
Vice-Chairman, James S. Carson, Electric Bond & Share Co.;
Under date of Jan. 13 a cablegram to the same paper
Robert H. Patchin, W. R. Grace & Co.;
Eugene P. Thomas, United States Steel Corp.;
from Shanghai stated:
Government leaders headed by Sun Fo,President of the Executive Yuan,
returned to Nanking this morning with the intention of establishing
a
special political commission to take over the government administration,
notwithstanding the continued absence of General Chiang Kai-shek, Wang
Ching-wei and Hu Han-min. While this action has evoked the
greatest
hope for a stable government, the financial situation is
reported to have
reached a most acute stage with the government seeking to mete
of about $6,000,000 monthly. With only $2,000,000 revenue expenses
and depredated credit owing to the excessive bond issues of the former
regime.
Finance Minister Quits.
Huang Han-hang, Minister of Finance, and the Vice-Minister
of
resigned to-night because of the mounting difficulties of the Finance,
Ministry.
An arrangement was made with Shanghai bankers to tide the
Government over the present emergency, but greater difficulties are
ahead,
Owing
to the necessity of raising adequate funds.
Premier Sun Fo officially stated that the Government's annual
was between $400.000,000 and $500,000,000 annually, but that income
after fulfilling loan service obligations the amount available to the
Government
was only $100,000.000.
Virtually every source of revenue had already been pledged,
and it
was futile to attempt to issue new loans, he said. Moreover, he continued,
domestic bond values were only 20 to 30% of their face value and
a further
flotation of domestic loans was futile.
"Never In the history of the republic," he said. "has China found herself In such a difficult position. Unless the country's entire resources
and all its talented men are mobilized, it will never be possible to save the
nation from such an acute crisis."
This crisis has resulted in many telegrams of protest from financial
and banking associations against the reported intentions of various provincial leaders to seize customs and salt revenues. The domestic bond
-day,owing to the bonds reaching the stipulated minimum.
market closed to
It was reported the action also was due to requests made by the Finance
Minister and the Shanghai Bankers' Association and the native bankers'
association with the view of arresting the declining prices.
To
-night the Bank of China, the largest Chinese bank of ist3110 stated
that hitherto part of its security reserve against note issues had been maintained in Chinese Government bonds and Treasury bills, but that this
percentage would be based on firmer security.
The Bank stated that in view of the existing situation and a desire
to follow a conservative and sound policy which would Justify the fullest
public confidence the directors had decided to replace as security for 40%
of its collateral reserves these bonds and securities, as long as their value
continued to fluctuate abnormally, with gold bonds and domestic bonds
secured on Russian and German indemnity funds, first-class bankers' bills
and title deeds.
Garrard Winston, Sheamlan & Sterling;
Treasurer, W. T. Moran, National City Bank;
Secretary, 0. K. Davis, National Foreign Trade Council;
Assistant to the Chairman, 0. 0. Martin, Pan American Information
Service,
The Committee also includes:
A. S. Durrant, International General Electric Co.;
W. J. Ferguson, Fred T. Ley & Co.;
General James G. Harbord, Radio Corp. of America;
E. N. Hurley, American Manufacturers' Export Association;
John L. Merrill, All-America Cables;
James D. Mooney, General Motors Export Corp.;
Frank C. Munson, Munson Steamship Line;
F. W. Pickard, E. I. du Pont de Nemours &Co.;
William L. Proctor, U. S. Rubber Export Co.;
T. Richer, The Texas Co.;
George Schobinger, United Engineers & Constructors;
W. S. Swingle, National Association of Credit Men;
Juan T. Trippe, Pan American Airways;
Maxwell M. Upson, Raymond Concrete Pile (Jo.;
Col. Henry Breckinridge, Breckinridge & Shenk;
Dr. S. P. Duggan, Institute of International Education;
Frederic R. Kellogg, Kellogg, Emery & Inness-Brown;
Severe Mallet-Prevost, Curtis, Mallet-Prevost, Colt & Moak ;
Dr. Henry Allen Moe, John Simon Guggenheim Memorial Foundation.
Attack by Japanese on Consul Regarded as Closed
Incident—State Department Suggests Punishment
of Higher Officers Involved in Case Be Remitted.
The Department of State announced Jan. 11 in behalf of
the Secretary of State, Henry L. Stimson, that upon receipt
of adrices from the Japanese Government to the effect that
members of the Japanese military forces involved in the
recent assault upon Culver B. Chamberlain, American ViceConsul at Mukden, Manchuria, will be punished, the
incident
would be considered closed so far as the American Government is concerned when such punishment has been
completed.
The "United States Daily" of Jan. 12, from which
the foregoing is taken, also said:
(Vox. 184.
FINANCIAL CHRONICLE
602
Although the Japanese Government had planned to discipline MajorGeneral Ninamiya, cotnmander of the military police, and his subordinate
officers as having been responsible in part for the assault upon Mr. Chamberlain, Secretary Stimson felt that the punishment of the three actually
participating in the assault would serve to insure the lives of American
citizens and their property in Manchuria, it was explained. The Secretary,
therefore, suggested that the punishment of the Major-General and his
officers be remitted.
The Department's announcement follows in full text:
The American Consul-General at Mukden, Myril S. Meyers, telegraphed
the Secretary of State on Jan. 9 to the following effect:
The Japanese Acting Consul-General, Mr. Moroshima, called upon ConsulGeneral Myers at 4 p. m., Jan. 9, and, after expressing his deepest regret
for the assault on Consul Culver B. Chamberlain, at Mukden, on Jan. 3,
said that he had been instructed by the Japanese Government to call upon
Consul-General Myers and convey to him an expression of sincere regret of
the Japanese Government and to inform Consul-General Myers of the action
taken by the Japanese Government with respect to the Chamberlain incident.
Japanese Proposals.
In pursuance of that instruction the Japanese Consul-General submitted
to Mr. Myers the following four items, which were to be duly carried out
by the Japanese authorities:.
1. Sakakihara, the interpreter in the service of the Japanese military
been
police, who was the thief offender against Chamberlain, has already
the army
dismissed from the service, but on account of having been in
before his dismissal, will be tried before a court martial in accordance
with military criminal law. For this purpose legal proceedings have already
been begun and he is now in custody.
due
The two military police involved in the matter will be subjected to
disciplinary punishment.
subhis
and
2. Major-General Ninamiya, commander of military police,
military
ordinate officers who are held responsible for discipline in the
police, are also to be subjected to due disciplinary punishment.
Ninamiya
3. The Japanese Acting Consul at Mukden and Major-General
expression
are to call upon Consul-General Myers and convey to him an
incident.
the
of
of their deep regret and apology for the occurrence
military
4. The Japanese Consul-General in Harbin and the Japanese
Consul
representative are to convey an expression of regret and apologies to
out.)
Chamberlain in that place. (Item 4 has already been carried
Major-General Confined to Bed.
In regard to item 3, Mr. Moroshima stated that Major-General Ninamiya
was ill in bed but would send an officer at once to represent him.
Then Mr. Moroshinm explained punishment of a Major-General in a matter
of this kind has been rare, and there was no precedent to his knowledge.
He said that the army had not been satisfied with the original investigation
and a subsequent enquiry has brought the finding that the fault rested
with the Japanese.
Mr. Moroshima asked permission to have the Japanese Judicial Consul at
Harbin and Military Judge at Mukden call on Mr. Chamberlain in order to
complete their investigation in order that it might be thorough and expressed the hope that Mr. Chamberlain would be willing to see them.
In conclusion, Mr. Moroshima expressed the hope that this settlement
would be acceptable.
The statement was referred to the Department by Consul-General Myers.
Remitting of Punishment Asked.
In reply to that, the Secretary of State instructed Consul-General Myers
to state to the Acting Japanese Consul-General that the object which the
American Government has had in mind from the beginning has been to
protect and make safe the lives of its representatives and its citizens in
Manchuria, and that inasmuch as in our opinion that object will be accomplished by the punishment of the three men who actually participated in the
assault and who are directly concerned, we suggest that the punishment
of the Major-General commanding and his intermediate officers be remitted.
The Secretary of State has stated that when the punishment of these
people is completed the incident will be closed so far as we are concerned.
The Secretary of State has expressed the gratification of the Government
of the United States for the prompt expressions of regret of the recent
attack and our satisfaction with the measures taken.
Outstanding Bankers' Acceptances Totaled $974,059,350 at Year End—$28,245,355 Below Nov. 30
Figures.
The total volume of bankers' acceptances at the end of
December declined to the lowest figure since August 1928,
and to more than $750,000,000 below the all-time high of
Dec. 31 1929.
The report of the American Acceptance Council on its
survey of acceptance business as of Dec. 31 shows a reduction
.a $28,245,355 from—the tot-al reported on Nov. 30. This.
brings the total down to $974,059,350, the smallest volume
Of the. year and $581,906,851 less than the volume outstanding on the corresponding date at the end of 1930. We
quote from the announcement on Jan. 20 by Robert H.
Bean, Executive Secretary of the American Acceptance
Council, who also states:
The principal change for the month was in the total of bills created for
export purposes which declined $32,482,459 to $221,618,640.
As a partial offset the volume of acceptances drawn to finance the storage
of readily marketable staples in domestic warehouses increased 312,117.000.
While this type of acceptance business now amounts to $251,346,059 or
about 25% of the total, It is nevertheless $20,000,000 less than was reported
in December 1930.
Acceptances in import financing remain practically unchanged at $158.000,000, an increase of only $400.000 over the figures for the previous
month. Domestic shipment acceptances declined $3,000,000 leaving a
total of $15.559,383 or less than half the amount outstanding a year ago.
Dollar exchange credits produced acceptances amounting to only $30,800,000. a reduction of $3,200,000 from Nov. 30. Acceptances based on goods
stored in or shipped between foreign countries amounted on Dec. 31, to
$296.177,344. This was a reduction of only $2,200,000 from the previous
report and indicates very closely the amount of foreign short term credits, a
great part of which remain under the Stillhaltung Agreement. This we compare with a total of $561,442,000 which was outstanding on Dec. 31 1930.
Of the acceptances which now remain in this classification, it is believed
that all are well protected, secured credits and will ultimately be liquidated
in full. When the original agreement expires at the end of February, the
present volume of outstanding acceptances against the foreign credits will
be materially reduced and those that are continued will be of a guaranteed
type to properly conform to the requirements of the American committee.
The reduced volume of bills of all kinds as shown by this report, accounts
for the shortage of prime acceptances in the bill market for the past several
weeks. Efforts to secure a release of bills by accepting banks by a reduction,
first of the buying rate of the Federal Reserve banks and second by a followed reduction by the dealers have been without substantial results.
The fact is the banks of the country have not recently bad a great supply of
bills to sell. The total volume of bills of all kinds and maturities held by all
reporting banks on Dec. 31 amounted to but $262,000,000 almost evenly
divided as between their own bills accepted and held and the purchased
bills of other banks. This we compare with a total of bills held in July 31
1931 by these same banks amounting to $668,033,890.
In New York City the total of own and others bills held by accepting
banks and bankers on Dec. 31 amounted to only 3198,052,691, a volume
which would not in ordinary occasions make a great difference in the
technical bill position of either the Federal Reserve or the dealers.
However, the needs of the present situation unquestionably require the
presence in the open market of the maximum possible volume of bills.
The lowered buying rate established by the Federal Reserve banks is an
invitation for co-operation that the bill holding banks should recognize by
releasing a large part of their present holdings.
The final argument for a general release of bills may be in a further
reduction in all open market rates. If successful, this would provide a
supply of bills that are sorely needed to meet the existing demand.
Mr. Bean's survey follows:
TOTAL OF BANKERS DOLLAR ACCEPTANCES OUTSTANDING FOR
ENTIRE COUNTRY BY FEDERAL RESERVE DISTRICTS.
Dec. 311931.
Federal Reserve District.
861,719,381
772,975,124
16.942,855
14,335,170
2,727,136
10,988,671
52,603.934
1,826,772
4,017,741
1
2
3
4
5
6
7
8
g
10
11
12
4,336,818
31.585,748
Nov. 30 1931. Dec. 311930.
865,852,081
790.929.076
17,288.700
16,156,727
3,214,146
10,627.317
54,241,502
1.533.800
3,205,070
299,970
3,961,572
34,994,744
8144.846,528
1,153,879,416
24.538,842
26,385,913
10,366,544
20,118.316
88,793,504
3,518,351
5,507.103
6.573,299
71,388,385
8974,059,350 81,002,304,705 81,555,966,201
828,245,355
3581.906,851
Orand total
Increase
Derma..
CLASSIFIED ACCORDING TO NATURE OF CREDIT
Dec. 311931.
Imports
Exports
Domestic shipments
Domestic warehouse credits
Dollar exchange
Based on goods stored in or shipped
uptwoon 1.1114417i1 ivinntrii.
Nov. 30 1931.
Dec. 311930.
$158,499,815
221,618,640
15,559,383
251,346,059
30,858,109
$158,058,271
254,101,099
18,483,192
239,229,873
34,066,850
$220,971.590
415.140,975
34,725,531
271,483,592
52,201,951
206177344
208 265 420
561.442.562
CURRENT MARKET QUOTATIONS ON PRIME BANKERS'ACCEPTANCES
JANUARY 20.
Dolts-30
60
90
Dealers'
Dealers'
Buying Rate. Selling Rate.
234
23-4
234
214
241
231
Days—
120
150
180
Deaters'
Dealers'
Buying Rate. Selling Rate.
344
33-4
334
3
331
33-(
Texas Cotton Law to Be Tested—Trial Suit on Acreage
Curb Brought by County Attorney Against
Farmer.
James V. Allred, Attorney-General of Texas, has signified
his willingness to accept, as a test case of the constitutionality
of the new cotton acreage curtailment law, the suit which
has been filed in Franklin District Court by T. L. Tyson,
County Attorney of Robertson County, for an injunction
to restrain Fred L. Smith, a farmer of that county, from
carrying out his plans for planting more cotton this year
than the law permits. Case has been set for trial for Jan. 20
by Judge W. C. Davis, said Austin advices to the "Wall
Street Journal" of Jan. 13, which further stated:
Petition alleges that Smith has showed his intention of violating the
law by breaking and plowing his land; also that he has made arrangements
with the Calvert State Dank to finance the planting of 900 acres in cotton,
which would be greatly in excess of the acreage allowed by the new law
Petition further asserted that Smith had made contracts with tenants and
had employed laborers to carry out his plans for violating the law, which
prohibits the planting in cotton of more than 30% of last year's total acreage
of all crops. Since passage of the bill, widespread opposition to the measure
has developed among farmers, especially those of central Texas, where
cotton is the principal crop.
It is likely the case will reach the Supreme Court by the end of January
and that the tribunal will render a decision in the early part of February.
If this is done, it will be in ample time to govern the cotton planting by
farmers of South Texas. Usually the cotton planting season starts in the
exLower Rio Grande Valley the early part of February, and gradually
is
tends northward, the season closing in northwest Texas where cotton
not planted until May.
various
Governor Ross S. Sterling still is being petitioned by farmers in
law.
parts of the State to calls special session of the Legislature to repeal the
Chamber of Commerce of Waco and other cities have joined in this request.
Governor Sterling has announced, however, that he has no intention at
this time of calling another session of the Legislature.
The law, however, has many strong supporters, particularly in west and
south Texas. Senator Oliver Cunningham of Abilene declared that the
farmers of west Texas will observe the law if it is held constituti nal.
Senator Cunningham, initial signer of the legislative enactment, said
constitutionality of the law rested solely on the police power of the State.
1
JAN. 23 1932.]
FINANCIAL CHRONICLE
603
weeks, he said, very little wheat had been sold, but the average has been
about the 5,000,000-busbel limit.
The Chairman stated that nothing definite has been done regarding
negotiations to sell wheat to the Government of Greece. The Board had
another inquiry last week, he said, but not very much of the grain is
wanted, possibly 1,000,000 bushels. He declared that it was his opinion
A 40% increase in cotton handled by the Dallas Cotton Exchange for the that this amount is wanted as a trial shipment "to
find out the character
year ended Dec. 31 1931. or 1,771,510 bales valued at $51,218,000,
is and quality of wheat we have for sale."
announced in the annual report by retiring President, W. A. Brooks
He asserted that the largest amount Greece might be interested in is
Jr.
Due to the high quality of the Texas cotton crop of the past season from 7,000,000 to 10,000,00 bushels,
0
but that this question has never
there has been practically no arbitration among shippers as in past years. been discussed. He added that
the credit factor is an important element
Fully 92% of the Texas cotton crop is tenderable on staple and grade. in such transactions.
This is not the result of farmers planting better seed, but rather because
Want Long-term Credits.
of
an unusually favorable combination of. climatic factors which
combined
"Most foreign governments are interested in long-term credits," be
high yield with excellent staple quality.
said, "which we are not in a position to enter into. What I have been trying
Outstanding feature in the Dallas market is the continued strong
demand to do is to work out some sort of plan, if possible, to handle some
of their
for Texas cotton by Japanese and Chinese importers, due
to American shorter time credits, but that is pretty difficult to do."
cotton being lower in value, grade for grade, than Indian.
The Indian
discussing
In
value
the
agricultur
to
e
of
Farm
the
Board,
Chairman
the
cotton crop also is about 1.000,000 bales less than last season,
with exports said that those who understand the Board are convinced of its value
and
from India to Japan and China about 200,000 bales less than
for 1930 for that many more understand it than did 12 months ago. "I have
heard few
the period ended Dec.1,whereas exportsfrom America total
about 1,122,000 people," he declared, "whom I have talked with who understan
bales, against 504,000.
d the Agricultural Marketing Act and who understand what is being done who have
There are larger stocks of cotton in interior Texas than at
any time in not admitted it was sound and a good program. They
may not agree with
recent years with merchants willing to hold the cotton
awaiting a rise some particular phase of it, but generally speaking
I think that in true."
in price.
The Chairman pointed out that one of the disadvantages the Board has
been laboring under is that practically nothing works at times like these.
Morris Resolution Calling for Inquiry Into Federal "They have been expecting too much from any kind of organization under
these times," he said.
Farm Board and Exchanges Dealing
Dallas Cotton Group—Handles 1,771,510 Bales in
1931, Gain of 40%—Valued at $51,218,000.
From the "Wall Street Journal" of Jan. 18 we take the
following from Dallas:
in Commodities
Over Which Board Has Jurisdiction.
A resolution (S. Res. 42) authorizing the Committ
ee on
Agriculture and Forestry to investigate the activitie
s of
the Federal Farm Board was reported with amendments
to
the Senate Jan. 13 and referred to the Committee on
Audit
and Control of Contingent Expenses of the Senate.
According to the "United States Daily" of Jan. 14, the
resolution,
sponsored by Senator Norris (Rep.), of Nebraska,
provides
also for an investigation of all exchanges In any of
the commodities over which the Federal Farm Board has
jurisdiction, and into the organization of any stabilization
corporations.
From a Washington account, Jan. 13, to the New
York
"Journal of Commerce," we take the following:
The
resolution was introduced by the Nebraska insurgent
immediately
after the convening of Congress and the
completion of a pre-session probe
of the Board's two great marketing agencies,
the Farmers' National Grain
Corporation and the Cotton Stabilization Corporatio
n, which showed that
"paper losses" of 8185,000,000 had been suffered
on their transactions.
Disclosures at that time are regarded by
proponents of the present investigation as a mere curtain raiser to
revelations which they believe can be
brought out by a wider and more leisurely
examination.
Scope of Investigation.
The investigation directed by the
Norris resolution would concern
itself
with the following phases of the
Farm Board's activities:
Relationship between all exchanges dealing
in conunodities over which
the Board has control or jurisdiction
and the Board.
Organization of stabilization corporations,
with special attention to the
advisability of such organization and
whether services of existing co-operative organizations could not have
been utilized to better advantage
.
Attitude of the Board toward
co-operatives and whether the Board
has
been "guilty of any practices which
tend to injure the operation or
ties of any existing co-operative
activiorganization."
Trading, buying, selling and storing
of commodities, with records
actual or potential losses.
of
The investigation also will
seek to establish whether private
organizations, dealing in products in
which the Board was interested,
"interfered
with, or hampered, wrongfully or
unjustly, the activities of the Board."
Chairman Stone of Federal
Into All Farm
Exchan
Farm Board Favors Inquiry
ges—Amended Senate Measure Provides for Investigation
of Every One Handling Products, He Says.
Chairman James C. Stone of the
Federal Farm Board
stated orally Jan. 14 that he was pleased
that the Senate's
resolution to Investigate the Board's
activities has been
amended to include all exchanges in any
of the commodities
over which the Board has Jurisdiction
and the organization of any stabilization corporations. The
"United States
Daily" of Jan. 15, in reporting this, quoted
Mr. Stone as
follows:
"1 am glad to see that they are going to include in the
investigation all
phases of the handling of farm products," the
Chairman declared. "It is
not going to be confined solely to activities of
the Farm Board or the
co-operative marketing organizations. They are
going to include in that
Investigation individuals or corporations handling farm
products—not only
co-operatives, but all others. I'm glad to
see them include everybody."
The Chairman stated that it was his understan
ding that the investigation
Includes everybody handling fawn commodities and
would therefore include
the exchanges.
Chairman Stone of Federal Farm Board on
Wheat
Sales—Nothing Definite Regarding Negotiations
With Greece.
In Its issue of Jan. 15, the "United States Daily" reported
Chairman Stone, of the Federal Farm Board, as follows,
in
discussing wheat sales:
Asked if the Grain Stabilization Corporation has continued
to sell
5,000,000 bushels of wheat each month, he [Chairman
Stone] asserted that
he believed so, although he had not made a check-un recently.
For several
Views of H. P. Bestor, Commissioner of Federal Farm
Loan Board on Bill Providing Additional Capital
for Federal Land Banks—Policies of Banks with
Reference to Delinquent Borrowers—Latest Offer.
ings of Bonds.
H. P. Bestor, Commissioner of the Federal Farm Board,
was given a hearing before the Senate Banking and Currency
Committee on the bill providing additional capital for the
Federal Land Banks. As we indicated in our issue of Jan. 16
(page 436), the bill passed by the House calls for additional
capital of $100,000,000, while the bill passed by the Senate
proposes $125,000,000 new capital, all of which is to be
subscribed for by the U. S. Treasury. Excerpts of Commissioner Bestor's testimony have been made available as
follows:
The logical approach to the problem would be through the capital struc•
ture of the banks. Adequate provision for additional capital should
accomplish a number of things. It should restore confidence in the market
for Federal Land-Dank bonds and enable the banks to obtain new funds
at
reasonable rates of interest with which to make new loans to borrowers
who are eligible and can qualify under the terms of the farm loan act.
With so many loaning agencies no longer extending loans to farmers, and
with funds available to Federal Land Banks for new loans confined to
principal payments collected on outstanding loans, it can be readily seen
how desirable a restabd market for Federal Land-Bank bonds would be
from the standpoint of agriculture. The bond market has fluctuated
widely during the last two years. These wide fluctuations have had a
tendency to lessen the confidence of bondholders, and constructive action
which would stabilize the market is most desirable. It is believed that this
increase in the capital structure of the Banks would enable the Land Banks
to refund outstanding high-rate bonds and through the sale of new bonds
at lower rates of interest make loans at lower rates than would otherwise
be available. In nine of the Banks the present rate is 534%. In three
Banks it is 6%.
The last public bond sale was a $20,000.000 offering of 43.6s issued in
December 1930, with 3-year maturity, and which could be called by the
Banks on any interest-payment date two years from the date of the
bonds.
In November 1928,$15,000.0004(% 10-30-year bonds were offered at par.
In May 1928. an issue of $25,900,000 4% 10-30-year bonds were offered
at 1003-. The law provides that the Federal Land Banks may issue bonds
at a ratio as high as 20-to-1 to their capital. The appropriation of
8100,000,000 would materially reduce the ratio of outstanding bonds to capital.
If the Federal Land Banks could refund their present outstanding 5%
bonds
of nearly $170,000,000, which are subject to call on any interest-payment
date. the Banks would largely increase their earnings and be in better
position to serve agriculture. Additional capital invested in accordance
with the provisions of the law would also increase the earnings of the Banks.
Much has been said concerning the policies of the Federal Land Banks
with reference to delinquent borrowers. As we stated last year in a hearing
on proposed legislation, while the Farm Loan Act does not contain any
express authority for the extension of delinquent installments, the officers
of the Banks have the power to exercise discretion as to the manner in
which
they shall deal with delinquent borrowers. We have been assured by each
of the 12 Federal Land Banks that while they must of necessity
adopt a
firm collection policy, yet no loan is foreclosed until a careful investigation
has ben made of the individual loan and it has been given considerat
ion
by the executive committee of the Bank. If upon investigation
and consideration it has been found that the borrower desires to remain on the
farm
and in the opinion of the Bank has a chance of working out of his
financial
difficulties within a reasonable time, and there is no factor in the
situation
that compels the Bank to foreclose for its own protection, the Bank
delays
action on the loan and extends to the borrower every possible
consideration.
Of course, any financial institution, whether a commercial bank
or not,
any permanent institution set up on a sound basis and being
operated on a
sound basis tries to make its creditors pay when they
can. Necessarily it
is rather a difficult matter for the management of any
Bank to pursue a
sound collection policy without giving the impression
to some borrowers
that they are being persecuted and pressed too hard.
Naturally a Bank
would not get anywhere if it pursued a policy
of saying to the borrower:
Well, we would like to have you pay this money,
but if it is not convenient
you can pay it when you get it. They can
not pursue such a policy as
that, and therefore, they may say to the borrower:
If there is any way by
which you can pay this installment you must
pay it, because we have to
meet our bond interest.
But I will add, in the foreclosure cases we have
investigated, we have
found it to be true in every case that I remember,
that the Bank had investigated each case carefully and had decided
that there was nothing
else left to it to do but foreclose on the loan
before they actually did so.
Now, it is possible that there might have been
exceptions to that rule.
604
[Vor. 134.
FINANCIAL CHRONICLE
Senator St,eiwer.-Where the borrower Is a good man and Is an intelligent
distress.
farmer, and his inability to pay grows out of the present economic
Isn't any foreclosure policy a short-sighted policy as to such a borrower?
is
himself
borrower
the
Mr. Bestor.-I think It depends upon whether
It
so burdened with debt that it is impossible for him to work it out.
has been said sometimes that you are simply taking one man off a farm
one,
and selling the farm back to another farmer no better than the first
of
and that nothing is gained. Of course not, unless the new purchaser
cases
the farm is In better financial condition than the old. In many
fact that
that the banks have investigated there has been revealed the
swamped
any number of individual farmers find themselves too completely
them to
for
impossible
it
with debt, which the present condition has made
away from that
meet,that the bank is practically compelled to take the land
debt. There
borrower and sell it to a man who is not so overwhelmed with
justificaare many cases where that is true; and, of course, that is the only
to another
tion for taking a farm away from one borrower and giving it
his obligation.
providing the first borrower is making every effort to meet
States, the
Barring the complete collapse of agriculture in the United
Bank has a
Each
Federal Land Bank System is fundamentally sound.
by the Farm
board of directors of seven men-three of whom are selected
the farm loan
Loan Board to represent the public interest, three elected by
Farm Loan Board
associations and one director at large selected by the
associations. The
from the three highest nominations by the farm loan
at the present
Board believes that the management of the banks generally
to the problems
time is intelligent, experienced, and sound and sympathetic
the instituthat
Congress
of agriculture. It was evidently the wish of the
loans to farmers
tionsshould be made permanent for the making of amortized
who could qualify under the terms of the act.
additional capital is
It is the opinion of the Farm Loan Board that if
they will be able to
provided for these institutions on an adequate scale
rate of interest,
continue this extension of legitimate credit at a reasonable
on a sound basis and
and they will be able to conduct their institutions
borrowers.
continue to extend every consideration to the
or checking
must be managed as savings, and not confused with commercial
deposits."
to turn
"We very properly ask," the speaker continued, "if this proposal
accomplishthe Banking Department over to a board so constituted will be
ing the end which the Governor so pointedly states is necessary."
loan
He said that during the past two years of depression savings and
, and
associations of the State had increased their resources by $19,000,000
time
a
long
too
"for
he urged the gathering to take a militant attitude,
have we sat meekly by while others told us how to run our business."
high
"The time has come for us to tell others who cannot display the same
to
record of conservative management that it is time for them to get back
"Comdeclared.
Bliss
fundamental principles and original purposes," Mr.
people is
mercial banking is one field. The handling of the savings of the
another."
and
Savings
0. Harry Minners, President of the Metropolitan League of
of the
Loan Associations, in presiding, pointed out that in the annual report
listed
Superintendent of Banks no savings and loan association had been
among those institutions "that needed more than supervision."
Banking
the
Clarence A. Masker,chief of the savings and loan division of
Banks,
Department, represented Joseph A. Broderick, Superintendent of
and assured the organization of the Department's co-operation.
Record New York City Bank Stockholders-Increase of
9% in 1931.
The total number of stockholders of fifteen representative
New York City banks and trust companies increased 9%
during 1931 and is now 1,596% higher than 1920, according
to figures compiled by Holt, Rose & Troster, who state:
On Dec. 31 1931 there were 328,974 stockholders compared with 301,932
on Dec. 31 1930 and 19,401 in 1920. From 1920 to 1931, the number of
stockholders has increased 309,573, or 1,596%.
The increase during 1931 is considered significant in view of the record
lows reached by brokers' loans.
The 15 New York City banks and trust companies used in the above
Hanover,Chase,
compilation are:-Bankers Trust, Brooklyn Trust, Central
Chemical, Corn Exchange, Guaranty, Irving Trust, Manhattan, ManuTrust,and
facturers, New York Trust,Public, Title Guar. & Trust, Empire
dealers show
Reports received by this Bank from commercial paper
outstanding on
a total of $117,714,784 of open market commercial paper
Dec. 311931.
The amount outstanding on Nov. 30 totaled $173,684,384,
as was indicated in our issue of Dec. 26, page 4258.
Bill in New York Legislature Creating Banking Board
Regarded as Unsound by G. L. Bliss, President
New York State League of Savings and Loan
Associations-Favors Single Head.
The bill before the New York State Legislature to create a
banking board or commission to supervise the financial
institutions of the State was attacked as "one of the most
dangerous and unsound legislative proposals that have ever
been advanced" in an address on Jan. 16 by George L. Bliss,
President of the New York State League of Savings and Loan
Associations. According to the New York "Times," Mr.
Bliss, who spoke at the annual thrift week dinner of the
Metropolitan League of Savings and Loan Associations in the
Hotel Astor, declared that such a board could become only a
means of evading responsibility, and held that one executive
head of the Banking Department should be responsible and
accountable to the Governor for the proper conduct of that
Department. The account in the "Times" continued:
The bill, he explained, would give power to the Board to alter and amend
rules and regulations and to pass on any matter the Superintendent of Banks
may submit to it. No charter could be granted to any institution to operate
under the banking law except with the approval of the Board, he said. He
explained that four members of the Board would be representatives of banks.
"There is a section of the banking law the purpose of which is to prohibit
commercial bankers from transacting a savings business. That section of
the law is openly flouted from one end of this State to another. Do you
suppose that a banking board, three of whom must be commercial bankers
and may be nominated by the bankers themselves, is going to take the
definite stand on the enforcement of that section which the protection of
the public requires?"
Mr. Bliss quoted Governor Roosevelt, in his annual message to the
Legislature, as saying that "the ethics of banking need restatement; savings
Sept. 1931
Oct. 1931
Nov. 1931
Dec. 1931
66.90
70.14
76.64
70.77
to t.to C.J 03Co COC4 03Ca 03C.2
IP 0000to to 14CIIV072
03000•00:1000N0003e0
m co co co cu
Charles S. McCain Elected President of American
at
Acceptance Council-Other Elections Made
Annual Meeting.
At the annual meeting of the American Acceptance
Council held Dec. 3, Charles S. McCain, Chairman of the National City.
Board of the Chase National Bank was elected President
retired Statistics from New York Stock Exchange "Bulletin"
of the Council, succeeding F. Abbot Goodhue who
P.
Charles
Showing Price Indices on Foreign Listed Common
terms.
two
y
after having served the customar
Bank,
Shares-Dividend Yields.
Blinn Jr., Vice-President of the Philadelphia National
Deans.
P.
G.
H.
succeed
to
following statistics are from the January "Bulletin"
President
The
Vicewas appointed
was
e
Committe
of the New York Stock Exchange:
The office of Chairman of the Executive
SHARES.
PRICE INDICES OF FOREIGN LISTED COMMON
filled by the election of Col. Allan M.Pope, Executive Vice[Approximately at beginning of month unless otherwise noted ]
President of the First National Old Colony Corp., while
Thomas P. Beal, President of the Second National Bank of
Amster- Brassets. Milan. Vienna. Zurich.
London. Paris. Berlin. dam.
Date.
Boston, was chosen First Vice-Chairman and C. J. Stephen130
New
in
e
------1225
92
Commerc
of
Bank
202
120.44
Jan. 1925
son, Agent of the Canadian
145
------959
104
206
126.68
Jan. 1926
170
62.6 1651
___
104
York, Second Vice-Chairman. For Treasurer of the Council Jan, 1927
232
127.70
211
2238
80.3
100
117
315
138.10
1928
212
88.3 2149
Percy H. Johnston was re-elected to serve his 14th year in Jan.
108
121
483
135.30
Jan. 1929
190
81.7 1922
76
100
463
107.91
this capacity, as was Robert H. Bean to the office of Secre- Jan. 1930
158
69.4 1543
57
65
97.0
378
89.94
Dec. 1930
tary.
165
66.4 1469
55
64
90.5
88.39
1931
Jan.
179
68.4 1574
56
69
84.7
83.92
Report of Commercial Paper Outstanding by New York Feb. 1931
179
1612
69.6
62
69
97.3
80.70
Mar, 1931
175
67.8 1579
Federal Reserve Bank.
58
64
101.2
81.02
Apr. 1931
163
1450
65.0
54
57
96.6
77.63
1931
May
161
61.7 1274
46
52
The New York Federal Reserve Bank issued the follow- June
80.6
70.33
1931
148
65.4 1291
55
55
83.7
76.42
1931
July
134
___
62.0
ing announcement on Jan. 22:
49
49
Closed
72.40
Aug. 1931
62.0
Closed
Closed
Closed
39
38
40
___
46
41
41
36
59.2
56.4
52.5
52.8
__
___
___
106
110
113
London.-Dane's Index (Dec. 31 1923= 00), in Investors' Chron de of about 157
listed ordinary shares (1st c ass and general business and spec.).
Parts.-Bulletin de la Statistlque Generale de la France Index (1913=100) of 300
variable revenue listed securities.
Berlin.-Stolper's Borsenindex based on about 800 listed common stocks. of 100
Amsterdam.-Central Bureau for Statistics Index (Baso-1920-1924 period)
listed common stocks: a monthly average.
listed stocks.
Brussels.-National Bank of Belgium index (Jan. 1928=100) 01 120 listed
stocks.
Afilan.-Indici Settimanall di Borsa Index (Dec. 1925=100) of 35
of shares
Vienna.-Oesterrelchische Bundesamt fur Statistik index (1914=100)
which were listed in July 1914 and still are listed; calculated as of 15th of month.
Zurich.-Banque Nationale Suisse Index (in percentage of the paid-in capital) of
110 listed shares calculated as of the 25th of the month.
DIVIDEND YIELDS ON FOREIGN LISTED COMMON SHARES.
(Approximately at beginning of month.)
Dale.
London. Parts,
Berlin,
Date.
London. Paris,
Berlin.
7.88%
Jan. 1929_-_ 4.30% 2.52% 4.62% May 1931...
8.88
6.13 June 1931...._
3.05
4.70
Jan. I930..
8.45 ju133
Closed
3.95
Dec. 1930_-- 5.18
1g?I17
I
1: ::H3:
Aug.
12.29
4.15
9.28 Sept. 1931- 5.76
4.26
Jan. 1931_ 5.32
Closed
4.78
9.40 Oct. 1931_ 5.57
4.08
Feb. 1931.... 5.45
Closed
4.98
Nov. 1931... 5.22
8.25
3.90
Mar, 1931.-. 5.56
Closed
5.03
7.45 Dec. 1931_ 5.12
4.12
Apr. 1931___ 5.25
listed ordinarY
London -Average net yield on approximately 50 representative
shares.
variable revenue securities.
Parts.-Average net yield on approximately 300 listed
source. Bulletin de la Statistlque Generale de la France.e listed common shares.
/kr:in.-Average net yield on approximately 50 representativ
5.43%
5.94
4.21%
4.27
Find
Steel Stock Lent at Half-Point Premium-Shorts
Cover
to
Try
They
When
Scarce
Shares
Common
Commitments-Figure Called a Record.
that
In the New York "Times" of Jan. 19 it was stated
lend
to
houses
brokerage
of
many
because of the refusal
committhe stock needed by speculators to cover short
on
scarce
so
became
common
Steel
States
ments, United
was
Jan. 18 in the stock-loan market that the premium
raised at one time to a half point, or $50 for the use of 100
premium
shares for twenty-four hours. This is the highest
JAN. 23 1932.]
FINANCIAL CHRONICLE
605
ever charged for this stock, so far as brokers could recall. short sales to total trading was 7.5% and on Dec. 2 it was
8.27%, the high mark of the month. The New York
The "Times" went on to say:
The unexpected stringency frightened many speculators and hurried "Times" further notes:
quoted value sharply on
the Stock Exchange.
covering movement lifted the
point.
Steel rose at one time to 46, but closed at 44 with a net loss of
The whole market was weak in the last hour.
sensation
of
the market. So far as
The "squeeze" in steel was the
could be learned, there was no actual shortage of the stock, but because
of the disfavor in which bearish speculators are held in some quarters,
commission houses are reluctant to lend the stock of their customers,
especially of steel, the traditional market leader. Brokerage houses seemed
to have taken cognizance of speculators' inclination to sell steel in advance
of the dividend meeting next Tuesday, when the directors will report the
income for the fourth quarter of 1931, from which the results of the full
year will be computed,and will act also on common and preferred dividends.
The dividend on the preferred stock will be declared at the usual rate of
$1.75 quarterly, but there is some doubt in Wall Street whether the present
rate of Si quarterly will be maintained on the common stock.
The premium charged to borrowers of Steel conunon was lowered yesterday afternoon, but not until considerable stock had been lent at the
rate of a half-point. The premium at the close was quoted at 3-32 point.
at which little was lent. Most speculators borrowed at from
to
point.
Many other stocks were lent at a premium, including American Telephone and Allied Chemical, 1-32; Peoples Gas, 1-16; International Shoe,
%; Coca Cola and Eastman Kodak, 1-64; Crucible Steel, 1-128, and J. I.
Case and Kreuger & Toll, 1-256.
In its issue of Jan. 20 the "Times" said:
Easier conditions prevailed in the stock loan market yesterday, indicating that traders short of the market were having less difficulty in borrowing stocks. United States Steel common was available at a premium
of 1-64, compared with 3-32 at the close of business and ;i at one time
on the day before. A premium of 1-16 was charged for Western Union,
Coca Cola and Eastman, 1-32 for Allied Chemical and International Shoe.
1-16 for American Telephone and Telegraph. 1-128 for Peoples Gas and
Westinghouse Electric, and 1-256 for J. I. Case.
The stringency on Monday in Steel common was due largely to the reluctance of brokerage tunnies to lend the stock to protect short commitments.
Inquiry by New York Legislature Into Short Selling.
A proposed inquiry into short selling on the New York
Stock Exchange by the State Legislature was indicated in
an Albany dispatch to the New York "Times," which reported that a concurrent resolution would be introduced by
Senator Burchill of New York City. The Albany advices
to the "Times" also said:
Senator Burch'II, who was the sponsor seven or eight years ago of
similar resolution which failed of adoption, said that he had given considerable study to the subject since that time, and expressed a strong conviction that this year the proposed inquiry would receive legislative sanction.
He expressed a belief that the economic depression had been aggravated,
if it had not been actually caused, by organized short selling promoted
by operators in Wall Street and that It would be unduly prolonged unless
such practices were legally prohibited.
"The present deplorable condition of business in general, caused no
doubt by Wail Street pirates, financial racketeers and up-to-the-minute
gold brick brokers" he said. "has revived the thought with all thinking persons that the State should curb the practices that have been in
vogue on the New York Stock Exchange, which in some cases are nothing
more than a high class method of committing grand larcency. My proposal
is impersonal in every respect. I do not care whom it may strike, as I
believe such practices should be discontinued and many of the guilty
operators placed behind prison bars."
Senator Burch'11 said statistics showed that, regardless of previous
declines in values, there had been a progressive hammering down of stock
prices, aggregating 514,520,780,805 in securities listed on the New York
Stock Exchange during March, Aprll and May last year.
"And in the single month of September," he added, "there was a decrease of $12.259.988.669 in stocks and $4,207,526,124 in the market value
of bonds listed on the New York Stock Exchange alone. During that
same month total failures were the highest and bank failures the second
highest of all time. Panic seized the people, actual hoarding assumed
enormous proportions and the very foundation of our financial structure
seemed threatened."
"Richard Whitney, President of the New York Stock Exchange, according to reports of a public address made by him, declared that short
sales on the Stock Exchange reached a peak of 5.589.700 shares on May
25 last year, and again on Sept. 11 went as high as 4,480,000." he went on.
"It has been charged that the short selling on the various exchanges has
contributed to the prolongation and intensification of the present depression."
Under the terms of the Burch'11 resolution, any transaction involving
the sale of securities in consummation of which there is delivered by or
on behalf of the seller any security not actually owned by him at the time
of making the sale is defined as short selling.
"The New York Stock Exchange, a voluntary association governed solely
by regulations made by its members, should be restricted in its practices
by law," Senator Burchl11 continued. "Other businesses which handle the
moneys of the people are regulated by the State; why not the New York
Stock Exchange? State laws have driven out the bucket shops. Is there
much difference between bucketing and short selling_ I am told they are
nearly the same. I want a thorough, impartial investigation."
The resolution calls for an appropriation of $15,000 to defray the cost
of the proposed inquiry. It is understood that Senator Burch'II wants
anY investigating committee which may be created under its terms to
make its report to the Legislature very promptly.
New York Stock Exchange Supplies Further Data on
Short Interests-Percentage of "In-and-Out" Daily
Short Sales to Total Sales.
In addition to the data heretofore furnished by the New
York Stock Exchange on short selling (given in these columns
Dec. 19, pages 4044-4048, and Jan. 16, page 429) we quote
the following from the January Bulletin of the Exchange,
issued Jan. 16; as will be seen, the percentage of "in-and-out"
daily short sales to total sales appears in the statistics below.
On Dee. 1, the table indicated, the ratio of "in-and-out"
Complete Short Interest Statistical Totals for 1931.
The following table gives the total number of shares in the short interest
In full lot transactions over the whole year of 1931 [from May 25, the
date which marked the inquiry of the Exchange into short soiling,' to
Dec. 31-Ed.i, together with the Standard Statistics Co. indices for
daily stock prices on the same dates. In this tabulation such revisions of
these figures as have been made, are included. The data for December
1931 has not previously appeared in the Bulletin. . . . The tabulation
also includes the percentage of short sales made and covered the same day
to the total reported share sales on the Exchange since Sept. 26 1931,
when this series was inaugurated.
Number of Shared,
Date.
In Total
Short Interest.
Net Change.
I
Percentage
Standard
'In-and-Out"
Statistics
Daily Short
Daily Stock Sales to Total
Price Index.
Sales,
1931
106.4
May 25
5,589,700--641,440
4,948,260
June 4
107.6
4,384,474
-583,786
107.3
June 17
3,978,149
-406,325
June 26
121.9
3.634,261
121.2
-343,888
July 3
3.770.569
116.2
+136,308
July 10
3,645,982
113.3
-124,587
July 17
3.718,218
+72.236
110.9
July 24
4.038,850
+320,832
July 31
109.0
4,374.200
108.1
+335,350
Aug. 7
4,342,500
113.5
-31,700
Aug. 14
4,271,800
Aug. 21
110.1
-70,700
111.1
+136,300
4,408.100
Aug. 28
-70.100
4,338.000
Sept. 4
105.5
4,480.400
100.8
+142,400
Sept. 11
-239,100
4.241,300
91.0
Sept. 18
3,961.300
86.8
-280.000
Sept.21
-798,487
3.162,813
85.8
Sept.22
-331,885
2.831.128
91.5
Sept. 23
+118,284
2,949,412
84.8
Sept.24
+37,973
2,987,385
86.7
Sept. 25
85.2
Sept.26
-2:iii
2,985.088
83.4
Sept.28
+78,115
3,083.203
79.9
Sept.29
-26,275
3.038.928
77.1
Sept.30
-221,993
2.814.935
75.7
Oct
1
-171.76$
2,643,170
77.0
Oct 2
74.4
Oct
2,612,414
-30,iiii
70.0
Oct3"
5
-14,516
2,597,898
78.7
Oct. 6
2,173,800
77.7
-124,098
Oct. 7
2,243,535
84.3
+69,735
Oct. 8
2,163,771
-79,764
83.8
Oct. 9
Oct. 10
84.5
2,182,197
+18:42e
Oct. 13
80.2
2,254,370
+72,173
Oct. 14
78.4
2,254,676
Oct. 15
79.8
+306
2,246,874
-7,802
Oct. 16
82.3
Oct.1782.4
2,241,968
Oct. 19
83.3
2,239,700
-2,268
Oct. 20
87.0 •
2,239,200
Oct. 21
86.2
-500
2.243,327
+4,127
Oct. 22
83.4
2,300,320
+56,993
Oct. 23
88.1
Oct. 24
86.9
2,374.059
Oct. 26
+73;755
84.5
2.440,169
Oct. 27
+66,110
82.7
2,540,943
Oct. 28
+100,774
80.0
2,652,127
+111,184
Oct. 29
80.3
2,676 649
Oct. 30
+24,522
82.8
Oct. 31
83.6
Nov. 2
2,764,959
+siiiii
83.4
2,816,934
Nov. 4
+51,975
85.9
2,846,236
Nov. 5
+29,302
85.6
2,949,402
Nov. 6
+103,166
88.2
7_.
_
Nov.
90.3
2.897.874
-51 _,528
Nov. 9
91.5
+27,543
2,925,417
Nov. 10
89.6
Nov. 11
2,988.446
+63,029
88.2
Nov. 12
3,020,601
+32.155
87.9
Nov 13
3,013,807
-6.794
85.1
Nov. 14
84.2
Nov.t16
3,104,185
+90;56
82.8
Nov. 17
3,131.796
+27,611
84.2
Nov. 18
3,237.159
+105.383
81.1
Nov. 19
3,364,776
+127.617
80.7
Nov. 20
3,429,228
78.2
+64,452
Nov. 21
77.6
Nov. 23
77.0
+108;585
3.537.787
Nov. 24
3.584.161
78.4
+46.374
Nov. 25
-15,623
3.568.538
75.7
Nov. 27
73.9
3.690.795
+122,257
Nov.2872.8
Nov. 30
75.4
,aii
3,745,642
+34"
74.5
Dec. 1
-78.575
3.667.087
71.9
Dec. 2
-1.915
3.685,152
73.2
+71,425
Dec. 3
3.736,577
71.6
-73.777
Dec. 4
3,662,800
74.1
Dec. 5
73.8
-eiiii
• 3,594.468
Dec. 7
71.8
-41,123
3.553.345
Dec. 8
69.7
+41.375
3,594,720
Dec. 9
68.1
+172.516
3.767.236
Dec. 10
66.0
-68,916
3,698.320
Dec. 11
65.1
Dec. 12
-138;613
63.6
3,559.707
Dec 14
64.5
-155.668
3.404,039
Dec. 15
63.0
-223.008
3.181,031
Dec. 16
-42,229
61.3
3.138,802
Dec. 17
-4,346
68.4
3.134.456
Dec. 18
66.7
Dec.
1964.7
-224.53i
2,909.672
21
Dec.
2.874,224
-35,448
65.8
Dec. 22
2.862.146
63.1
-12,078
Deo 23
2.891,885
63.2
+29,739
Dec. 24
2.888.854
-3,031
61.6
Dec. 28
2.888,648
-206
63.2
Dec. 29
2.858,928
-29.720
64.3
Dec. 30
2,842.072
-16,856
64.5
Dec. 31
-46
__.
-_------------__
_--
---------------Kili
5.72
5.31
5.16
3.78
5.17
4.93
4.07
3.26
6.10
3.69
3.87
3.30
4.37
5.43
5.90
3.73
2.47
2.94
3.09
3.10
4.52
5.02
2.40
4.11
8.73
6.31
5.43
4.25
3.15
4.44
3.98
4.59
3.05
2.55
3.22
4.93
3.70
4.46
4.63
4.40
5.87
7.13
6.04
6.73
5.58
10.41
9.39
7.43
5.97
3.64
6.50
7.27
7.50
8.27
6.44
6.88
7.86
7.85
6.51
6.68
6.07
4.59
4.41
5.41
4.72
5.89
5.20
3.82
6.61
6.86
4.04
4.77
3.71
3.83
4.31
2.88
3.52
Thereafter the ratio declined slowly until Dec 30, when it VMS 2.88%,
On the last day of the month it increased to 3.52%.
In December the over-night short Interest declined 903,000 shares,
Nominees Named by Nominating Committee of New
York Curb Exchange.
In preparation for the election of officers, February 8, the
Nominating Committee of the New York Curb Exchange has
designated as its nominees on the regular ticket for members
of the Board of Governors for three years, Frank Bethel,
G. Arthur Callahan, Joseph A. Cole, W. Chauncey Coles,
606
FINANCIAL CHRONICLE
James A. Corcoran, J. Chester Cuppia, Harold H. Hart,
Reginald E. Heard, T. Frank Mackessy, Thomas Morris,
David U. Page and W. Reitze. Robert L. Stott was nomiinated for the Board of Governors for a one year term.
E. R. McCormick for trustee of the Gratuity Fund for a
three year term and E. M.Williamson trustee of the Gratuity
Fund for one year. Candidates for the Nominating Committee for one year include Jerome P. Miller, Joseph Berson,
Oscar Nathan, Alfred I. Preston, Jr., and E. B. Schryver.
House Members Move to Abolish Short Selling on
Cotton and Grain Exchanges.
Associated Press advices from Washington on Jan. 18
stated that a group of House members on that date opened
their campaign for the abolishment of short selling on cotton
and grain exchanges with criticism of the Grain Futures
Act. The dispatches continued:
Before the House Agricultural Committee, Chairman Jones said the grain
futures administration "has been of no benefit whatever."
has
Representative C'ross, Democrat, Texas, added that "The grain law
Combeen absolutely worthless," and Chairman Vinson of the House Naval
"has not been
mittee held the administration of grain futures transactions
up to expectations."
the exchanges
convinced
was
Mr. Vinson, a Georgia Democrat, said he
should be controlled and regulated by the Government.
other
He has proposed two methods, one prohibiting short selling and the
He
placing it under the jurisdiction of the Department of Agriculture.
a
than
beneficial
more
be
said, however, he thought a regulatory bill would
prohibitory one.
strengthMr. Vinson suggested the provisions of the Grain Futures Act be
manipulation.
ened and extended to cotton exchanges to prevent harmful
Restrictions on Short Selling of Cotton Opposed at
Hearing in Washington by Officials of New York
and New Orleans Cotton Exchanges—Farm Group
Favor Regulations.
Opposition to any form of regulatory legislation respecting
short selling on the cotton exchanges was voiced, Jan. 19,
before the House Committee on Agriculture by Russell Clark,
President of the New Orleans Cotton Exchange, and by
William S. Dowdell, Vice-President of the New York Cotton
Exchange.
On behalf of the National Farmers' Union, the National
Grange, and the National Farm Bureau Federation, John A.
Simpson, of Oklahoma City, Okla., read to the Committee
a brief memorandum opposing short selling and favoring
anti-short selling legislation. Regarding the hearing, we
quote the following from the "United States Daily" of
Jan. 20:
Arr. Simipson's Statement.
Mr. Simpson, the President of the National Farmers' Union, read a statement of the joint position of those he represented, as follows:
"The stabilization of American business, industry and agriculture is
being retarded by short selling operations on the commodity and other
exchanges of the country, for the reason that short selling creates a fictitious
supply and so interferes with the normal operations of the law of supply
and demand. We favor such legislation as is necessary to prevent short
selling on commodity or other exchanges."
Mr. Simpson said that the agricultural organizations for whom he spoke
take the attitude that all short selling creates a fictitious supply of the
commodity and that competes with the actual commodity and for that
reason the organizations are opposed to short selling. A number of House
bills dealing with the problem are before the Committee.
Mr. Dowdell protested proposed restrictions on the sale of cotton for
future delivery, said that the price of cotton is determined by the law of
selling causes or aggrivates
supply and demand, that it is untrue that short
or prciiibition of
declining tendencies in the market, and that restriction
of free and open
short selling or other interference with the principle
many speculative
trading in the future commodity markets would cause
delayihg the recovery of
or investment buyers to refrain from buying, thus
raids on his
bear
any
denied
He
depression.
prices and prolonging the
selling in the
Exchange or that the farmers have been injured by short
New York market.
Price Regulation.
to present the views
Mr. Clark said that he had requested opportunity
interfere
of the New Orleans Exchange because of the various proposals to
including the
with the operations of that body in connection with futures,
with SO
proposal to do away with a machinery that had been developed
years' experience and to substitute for the satisfactory system of operations
legislafurther
any
something that has been untried. "We are opposed to
tion regarding the future exchanges," he said, adding that if the Exchanges
should be destroyed now, the business depression would be augmented, and
there would be chaos in the cotton industry, with prices fixed abroad,
probably in the Liverpool market. Drastic legislation, he said, might
destroy a satisfactory system without anything adequate in its place.
He told of Germany trying to prohibit future trading in the past and
how it was forced to restore it on demand of the farmers, and how various
States in this country have legislated on the subject. He quoted from the
Chamber of Commerce of the United States, which, in its announcement
of results of referendum on the subject, had overwhelmingly supported
the attitude taken by the Cotton Exchange.
"The Federal Government," Mr. Clark said, "should leave these matters
to be handled in accordance with the existing laws, and it would be time
for Congress to step in when there are any abuses." He added, however,
that if it should be decided to go ahead with legislation regarding short
selling the New Orleans Cotton Exchange is willing to co-operate with the
Committee to avoid destructive legislation that would be destructive.
"Do you contend that there are no wash sales or fake sales in your
Exchange?" asked Chairman Jones (Dean.), of Amarillo, TeL
[VoL. 134.
"Yes, sir," replied the witness, adding that the Exchange deals only in
legitimate enforceable contracts.
Mr. Clark said the bill introduced by Representative Cross (Dem.), of
Waco, Tex., for instance, would destroy the market. It would prohibit
short sales, he said, and wash sales are prohibited by the Exchange.
The witness explained that a wash sale is one that does not actually take
place but is only put on the board to influence sales. "Every member
of the New Orleans Cotton Exchange," he said, "must have an absolutely
enforceable contract. He cannot have any contrary understanding or agreement that would be recognized by the Exchange. Of course, if parties
agree or have an understanding among themselves that they will not
observe the enforceable terms of a contract it would be without the
Cotton Exchange's knowledge, but in all probability if suit were brought
in connection with it a court would not sustain the private agreement."
Under the Exchange system of enforceable contract, he said, a man who
buys will receive and the seller will deliver, explaining, however, that
someone else might be procured to make the delivery.
Offers Defense of Tenderable Grades.
"In most instances," said the Chairman, "he sells not intending to deliver
the commodity?"
"He either delivers or procures someone else to deliver," Mr. Clark
replied.
"In other words, he sells a piece of paper?"
"The man buys the piece of paper to comply with the enforceable contract," was the reply, "and the contract is enforceable."
Chairman Jones asked Mr. Clarke if he would object to changing the
tenderable grades of cotton. Mr. Clark said he would object and insisted
that the buyer on the cotton market has his full voice, so that it he wants
a particular grade delivered to him he can get it on the spot cotton market,
the futures market operating to prevent losses. He said the futures market
provides a system of price insurance comparable to Lloyds.
"The tenderable grades are set up for the Exchange use and not for the
use of the mills?" asked Chairman Jones.
"They are for whoever wants to use them," Mr. Clark replied. "We have
lots of millers who come to us but none of them ask for a specific grade."
Asked regarding the organization of the New Orleans Exchange, Mr. Clark
said that out of a limit of 500 there are about 400 members now; that the
last price paid for a seat was $1,940, the lowest for some time, and that
there are about 50 active traders in the ring, representing 28 or 80 firms
in New Orleans. Some of the firms represented, he said, operate their
offices as low as $5,000 to $6,000 a year overhead, and $100,000 would
be much too high as an estimate of the expense of the average maintenance
of a firm's office. He said business has been slow.
"You say that a large percentage of the sales on the Exchange are on
actual contract but that the actual cotton is not delivered?" "Yes," he
replied.
Says Restrictions Would Delay Recovery.
Mr. Dowdell said he has been in the cotton business in this country
and in England for 26 years, that wider variations in price and consequent
greater market risks would follow the impairment or restrictions of the
functions of future contract markets and would compel banks to require
larger margins on loans on such commodities. There would thereby be
a curtailment, he said, of the credit so necessary to the handling of the
large staple crops. He said it is impossible to conceive a worse time
than the present to attempt to restrict or prohibit short selling or otherwise interference with open trading in the future commodity markets
because it would result in delay of recovery of prices and prolong the
depression.
"The real service rendered by the exchanges," Mr. Dowdell explained,
"is to furnish facilities for hedging both purchases and sales for farmers,
merchants and spinners, thereby eliminating the market risk and autoAn exchange, in order
matically reducing the cost of distribution.
to offer these facilities to the cotton trade, must have a big, broad market
with ample buying orders at all times to offset selling orders and vice
versa. Even under the present depressed conditions, we seldom find a
difference on our exchange of more than one or two points between the
bid and asked price. It is probably unnecessary to say that one point
represents only five cents per bale.
"This being the case, both buyer and seller know within a few points
the price at which contracts can be purchased or sold. Therefore, a
merchant in doing business does not have to figure excessive profits
because he has practically no market risk to contend with. I might
say here that I do not know of any other line of business that is conducted
on such a narrow margin of profit as prevails in the cotton business.
"In our opinion, it is a mistaken idea that short selling is the cause
of, or aggravates, a declining tendency at any time, especially in periods
of depression."
New York Produce Exchange Names Committee to
Consider Restrictive Measures Against Grain
Future Market.
In view of advices from Washington to the effect that
the movement to draw up legislation affecting the grain
futures market is gaining support from unexpected quarters,
the New York Produce Exchange has appointed a committee to canvass the membership with the idea of having
them bring this threat to the attention of their Senators
and Congressmen. The personnel of the committee, which
Is charged with the work of crystallizing the sentiment
of the exchange membership is as follows: Moses Cohen,
James Eblen, H. P. Grothusen, O. N. Hitchcock, E. W. S.
Knudsen, J. A. Lenz, William C. Mott, W. E. Pritchard,
A. L. Russell, W. C. Schilthuis and Walter Trappe.
Increase in Rate of Interest on State Deposits in New
Jersey Banks.
From its Trenton bureau, the Newark "News" of Jan. 15
reported the following:
State Treasurer Middleton within a few days will notify all banks having
State funds on deposit that the interest rate they pay the state will be increased from 1% to 2% beginning Feburary 1. The rate was reduced by
the State Treasurer from 2 to 13i% July 1.
At that time Mr. Middleton expressed hope the lower rate would be
temporary. He said the reduction was designed to relieve banks of losses
JAN.
23 1932.]
FINANCIAL CHRONICLE
which he said many of them suffered on state deposits under existing
financial conditions.
The reduction was made under authority of an act of 1902 which provides that the interest rate on state deposits shall not exceed 2%. Authority is conferred on the State Treasurer, under certain limitations, to reduce
the rate when, in his judgment, it was necessary. At that time, based
on the amount of state deposits, the banks would save approximately
$125,000 annually.
The cut in the rate of interest in July was referred to in
these columns June 13 1931, page 4346.
607
The petition refers to proceedings before the Senate Finance Committee
where, the petition says, it was shown that the New York Stock Exchange,
agent for the Commonwealth of Virginia, "falsely and deceitfully pretended" that it had made such due and sufficient examination as contemplated by law in all respects and "particularly with reference to some
part of a total $6,000,000,000 of securities the situs of which is without the
territorial limits of the United States."
Continuing, the petition alleges that "under a scheme, artifice, and fraud
colloquially known as 'high grading,' "these securities were sold to a "testified total of 1,756,000 citizens of the United States" or in part traded
for United States Government bonds. It also claims that some components
of this $6,000,000,000 defaulted in a number of respects and that "it is
evidence in said testimony that a commission, profit or spread of $300,000
accrued between the amount paid by the public and the amount received
by the issuers of said secutities."
Finally the petition calls on the Corporation Commission to revoke
recognition of the New York Exchange alleging that it and the distributors
of these securities "abetted and consummated in conspiracy, contrary to
public policy" and to the express provisions of the Virginia law.
New York State Real Estate Boards Want New Revenue
Used to Aid Realty—Oppose Applying Added Taxes
to Deficit—Tax Exemptions Assailed—Increasing
$500,000,000 Annually in State Says President
Walsh.
New State revenues from increased taxes should be used
for the relief of realty, the New York Association of Real Economists Advise Credit Expansion by Federal Reserve
Board—Deflation Has Gone Far Enough, Says
Estate Boards declared at Albany on Jan. 19 it is learned
Advisory Board in Offering Recovery Program-from a dispatch to the New York "Times" from which we
Rise in Taxes Suggested—Proposals Endorsed by
also quote as follows:
Irving Fisher, E. W. Kemmerer, &c.
Ray Hofford, Executive Vice-President, summed up the attitude of the
organization by saying:
From the New York "Times" of Jan. 16 it is learned that
"We disapprove of any attempt to direct this added revenue to the relief
program for business recovery, sanctioned by prominent
is
a
if
revenue
believe
that
added
We
faces.
of the deficit which the State
to be obtained it should go toward alleviating the burden placed on property economists and based in general on the use of credit facilities
owners throughout the State."
to reverse the present process of deflation, was announced
G.William Magly of Jamaica,Chairman of the Committee on real estate
a
by
law
the
license
administer
to
by a recently formed Advisory Board of economists on
proposed
license law, stated that it was
commission of three, to act as an advisory council, clothed with the author— Jan. 15, through Warren M. Persons, former Harvard
ity to suspend or revoke licenses for cause. It was also proposed to extend
Professor and the Board's Chairman.
the scope of the law, which now applies to cities and to several counties
Similar in some of its provisions to President Hoover's
with a population of over 110,000.
Bills to be submitted to the Legislature were discussed this afternoon. plan for economic readjustment, the program advocated
The members attended an appraisal clinic conducted by Lester P. Slade
only the checking of deflation, but also "some expansion,"
of Rochester, Chairman of the appraisal committee of the Rochester Realty not
said the "Times," which went on to say:
Board.
J. Irving Walsh, who was installed as President, declared:
Attached to the announcement were the names of 35 specialists who
"We can be thankful that we are dealing in a commodity that has with- offered their services to the country to carry out the proposals. They
stood the depression as well as real estate has. Of course there are examples included Professors Irving Fisher and T.S. Adams of Yale. F. W. Taussig,
of ill-advised and improperly financed real estate investments that have T. N. Carver, John H. Williams of Harvard and Edwin R. A. Seligman,
been proved unfortunate to the owners.
Emeritus Professor of Political Economy at Columbia, and E. W. Kem"But well-located business and residential property has weathered the merer of Princeton.
drop
tremendous
storm with very little depreciation as compared to the
The program itself, described as "the least common denominator of
in the stock market.
effective platforms upon which fairly general agreement appears posand
Commission
Revision
Tax
the
of
work
the
praised
Mr. Walsh also
sible," was put forward with a statement that failure to include other
expressed the hope that "good will come from it."
relief measures did not mean that the economists had disapproved omitted
of
rate
the
at
He declared that tax exemptions have been increasing
items. Modifications, particularly additions to deal with world recovery,
6500,000,000 a year.
might be made later, it was indicated.
"A determined effort should be made," he said. "to get part of that
of no
Report of Findings.
property back on the tax duplicate and an ironclad policy adopted
A statement of the Board's preliminary findings, recommendations
more exemptions."
should
cities
the
that
said
Comptroller,
and expected results follows:
Morris S. Tremaine, State
1. Though some important adjustments of various elements of cost and
adjust themselves on the pay-as-you-go plan, because the interest charges
overhead remain to be made, the general contraction of credit and deflation
were mounting to such heights that they would become topheavy.
ComRevision
Tax
the
of prices have gone far enough.
Senator Seabury C. Mastick, Chairman of
2. The United States can have substantial business recovery without
mission, asked the State Boards to back up the findings of the Commission
of
work
the
that
predicted
he
done,
not
was
this
If
waiting for a solution of Europe's difficulties.
when announced.
committee
3. Recovery is possible on a sound-money basis without recourse of
the Commission would go the way of many other legislative
monetary panacea, but
findings.
who
Roosevelt,
Governor
of
4. The depression will not cure itself and requires prompt, intelligent
Guernsey T. Cross brought the greetings
and vigorous action.
was unable to attend because of State business.
We recommend the following steps:
The officers installed in addition to President Walsh were:
-President,
1. The enactment of the bill establishing the Reconstruction Finance
Executive Vice-President, Ray Hofford of Albany; Vice
of
Male
T.
Chartes
Corporation to deal more effectively with emergency situations.
Charles W. Schutzendorf of Staten Island; Secretary,
2. Proper economy in municipal, State and national budgets, and InSchenectady, and Treasurer, Clyde W. Hoer of Troy.
creased taxation.
3. A liberal Federal Reserve policy designed to check credit decreases
George B. Cortelyou Elected Chairman of Nominating and encourage some expansion.
4. A commercial banking policy co-operating with the Reserve banks
Committee of New York State Chamber of
in checking credit decreases and encouraging increases, including (a)
Commerce.
an increase in sound investments; (b) co-operation in aiding necessary
George B. Cortelyou, it was announced on Jan. 9, has Treasury financing; (c) borrowing from the Federal Reserve banks when
to meet these and other sound needs.
been elected Chairman of the committee which will nominate necessary
We believe vigorous prosecution of these policies is sound, involves
officers, chairmen and members of the standing committees no important risks, and is likely to be effective in (a) stopping the downand returning hoarded money
of the Chamber of Commerce of the State of New York ward trend of prices; (b) stopping hoarding
the banks; (c) restoring the normal value of securities, and (d) starting
to be voted on at the annual meeting on May 5. The other to
recovery.
business
the beginning of
members of the Nominating Committee are Stephen Baker,
With the assistance of industrialists, bankers and business men, reMallory,
D.
B.
covery could undoubtedly be initiated by these means, Mr. Persons deClifford
Gawtry,
Lewis
Case,
Herbert
J.
clared.
Gerrish H. Milliken and John Sloane.
Favor Isolation Policy.
His statement made plain also that the economists believe, notwithis possible for the
Petition Filed in Norfolk Asks State Corporation standing their assertion that a measure of betterment
United States in isolation, that subsequent attention must be given to
Commission to Revoke Virginia's Recognition of international
and
to related quesproblems
tariff
financial difficulties, to
New York Stock Exchange—Action Said to Be Due tions if business recovery is to be long continued. After consideration
by the Board, the program finally endorsed was mailed to representative
to Decline in Foreign Bonds.
economists for comment, being sent out Jan. 8. Replies, it was said, are
9
take
Jan.
we
of
"Times-Dispatch"
Richmond
From the
still being received.
Besides Mr. Persons and the professors named, endorses include:
the following:
Frederic Bennett, Tucker Anthony St Co., New York.
Alleging that $6,000,000,000 in securities issued in foreign countries
W.A. Berridge, Economist, Metropolitan Life Insurance Co., New York.
some of which securities are non-exempt from regulation under Virginia
E. L. Bogart, Professor of Economics, University of Illinois.
law and all of which were listed or indicated for listing by the New York
J. M. Clark. Professor of Economics, Columbia University.
Exchange, are actually worth in the aggregate about one-half their face
John R. Commons, Professor of Political Economy, University of
value, a petition has been filed with the State Corporation Commission,
Wisconsin.
asking that Virginia's recognition of the New York Stock Exchange be
John H. Cover, Professor of Marketing and Statistics, University of
revoked in full.
of Chicago.
Public hearing on the petition, which was filed by Charles Forney
Victor Clark. Consultant in Economics. Library of Congress.
by
Norfolk. President of the Profile Timber Corp., was set for February
J. S. Davis, Director of the Food Research Institute, University of
order of the State Commission on yesterday.
California.
Claiming that the New York Stock Exchange has not exercised the
F. W. Delbler, Professor of Economics, Northwestern University,
of the
"protection contemplated by law," the petition says that this agent
Carroll W. Doten, Professor of Economics, Massachusetts Institute of
Corporation Commission "attained such agency by its deceit and fraud"
Technology.
for gain and
and that the Exchange "Is composed of persons . . .engaged
Paul H. Douglas, Professor of Economics, Chicago University.
Personal profit" in the business of selling bonds and are therefore not
E. Dana Durand, former Director of the United States Census,
qualified to list securities for sale to Virginia citizens."
608
FINANCIAL CHRONICLE
J. F. Ebersole, Professor of Banking. Graduate School of Business
Administration, Harvard University.
David Friday, former Professor of Economics. Michigan University.
Henry B. Gardner, Emeritus Professor of Economics, Brown University.
Jacob H. Hollander, Professor of Political Economy, Johns Hopkins
University.
W. R. Ingalls, Director, American Bureau of Metal Statistics.
Virgil Jordan, Economist, McGraw-Hill Publishing Co.
Max 0. Lorena, Statistician, Inter-State Commerce Commission.
Harry E. Miller, Professor of Economics, Brown University.
Frederick C. Mills, Professor of Economics, Columbia University.
Harold L. Reed, Professor of Economics. Cornell University.
Father John A. Ryan, Professor of Moral Theology and Industrial
Ethics, Catholic University,
L. Leo Sharfman, Professor of Economics, University of Michigan.
Walter Spahr, Professor of Economics, New York University.
Donald S. Tucker, Professor of Economics, Massachusetts Institute of
Technology.
Walter E. Willcox, Professor of Economics and Statistics, Cornell
University.
John H. Williams, Professor of Economics, Harvard University.
Henry Wallace. Editor.
Former President Coolidge Holds All Share Crisis
Blame—No One Person or Group Can Be Accused
of Any "General Moral Lapse," He Declares in
Magazine Article—Urges Work, Thrift, Faith.
Blame for the present economic plight of the United
States, in so far as the blame can be determined, rests upon
, all Americans and not upon any particular person or group,
Calvin Coolidge declares in an article to be published in
the "American" magazine on Jan. 20. A summary of the
views presented by the former President is taken as follows
from the New York "Times":
riroL. 134.
Indications last week that efforts would be made to expand the volume
of credit created the impression abroad that the United States was about
to embark upon a policy of unrestrained inflation.
The continued possibility of such an interpretation of the purposes of
present Reserve Bank pollcies would make rapid credit expansion at the
present time unlikely.
Last week the Federal Reserve Bank of New York, following the meeting of the Open Market Committee in Washington, suddenly reduced the
rate at which it buys bankers' acceptances by a full one-fourth
of 1%•
Market Rate Declines.
This led to rapid reductions in market rates so that the New
York Federal
Reserve Bank's own buying rate on bills again fell out of line with market
quotations. It was pointed out in financial quarters that such a situation
ordinarily would result in a reduction in the rediscount rate, which was
widely predicted for next Thursday.
Over the week-end reports were spread throughout the European Continent that unlimited inflation soon would become the order of the
day in
America. There was a sharp rise for franc exchange on Saturday and
the
rise continued yesterday, so that by the close of business quotations
on the
franc were far above the gold point. It was considered likely that
gold
shipments to France would take place as ships left New
York.
Yesterday New York representatives of European and Latin-American
newspapers were urged in repeated cablegrams from
their home offices to
get exact details as to American Inflation plans.
Cables from abroad at the same time indicated that
the European press
had given sensational displays to reports that the dollar
would be weakened.
Assisting the purposes of the Reconstruction Corporation,
the Federal
Reserve banks will seek to check present deflation,
which, it was pointed
out, has gotten completely out of control. The
Federal Reserve Bank
reduction in bill rates last week, it was pointed out,
probably was directed
to this end.
Reserve banks desire to check the present decline in their
bill portfolio
and cut the rate for that purpose. The present buying
rate of the Federal Reserve Bank of New York is below the rate offered for
bills by the
Bank of France. It is not expected that the Bank of
France will reduce
Its buying rate on dollar acceptances and in consequence a
gradual transfer
of bills from foreign to domestic ownership is anticipated.
This will increase the holdings of Reserve banks,it was said.
•
Defending the American banking system, criticizing hoarders and
counselling hope for wage-earners, real estate owners and security holders,
the former President advocates the continuance of work, thrift and faith
as the best general remedies for the depression. The tone of the article,
entitled "In Times Like These," indicates the attitude Mr. Coolidge may Bill in New York Legislature Asks $10,000,000 Fund
be expected to take should he discuss the prosperity issue during the coming
and Crisis Council for Up-State Banks—Slater
national campaign. He will be one of those, it appears, who will resist
Offers Measures to Legislature As Check to Withall attempts to attribute the business slump to the Republican Adminisdrawal of Deposits—Proposes Board of Ten—
tration.
The Question of Responsibility.
Administrators Would Be Named by Governor,
"If we could lay the blame for present conditions in our own country
With Superintendent Broderick As Chairman.
or in the world on society at large, against whom is the blame to be assessed?" the former President asked. "It is impossible to point out
As a means of checking the tendency of depositors to
any general moral lapse, any widespread dishonesty. We may say that take
their money from smaller banks up-State, Senator
It was the result of greed and selfishness. But what body is to be spedrally charged with that? Were the wage-earners too greedy in getting Frederick J. Slater of Monroe introduced at Albany on
all they could for their work? Were the managers of enterprise, big and Jan. 18 a bill providing for the creation of an
emergency
little, too greedy in trying to operate at a profit? Were the farmers too
greedy in their efforts to make more money by tilling more land and en- financial council to administer a $10,000,000 fund for the
relief of the institutions. From the New York "Times"
larging their production?
"Even if we could convict society on a general charge of selfishness we Albany advices, Jan. 18, we quote the following:
would not point to any element that consciously brought about a condition
The proposed council would be composed of 10 members,
of falling prices, lack of confidence, business failures and hard times.
one from
each of the nine judicial districts of the State, with the State
These were the last things that anybody wanted.
Superintendent
Banks
of
as
appointments
Chairman.
The
would
be
made
by the Gov"The most we can say is that there has been a general lack of judgment
ernor, subject to confirmation by the Senate, for a period of one
SO widespread as to involve practically the whole country. We have
year
found that we were not so big as we thought we were. We shall have from the time the bill became law. If the existing emergency should
to keep nearer the ground. We shall not feel so elated, but we shall be outlast that period new legislation would be required to continue the
council in existence.
much safer."
There Is no indication that Governor Roosevelt has been consulted by
Calls Banking Systent Sound..
the Monroe County Senator, but it has been discussed by Mr. Slater
Out national banking system, and the systems of most of the States—
with the legislalve leaders of his party, prior to its introduction.
since these are fashioned on the national pattern—are as sound and as
The prospect of the bill becoming law is not regarded as very good.
rigidly regulated as it is possible to make them in the light of experience, The Governor,
it was pointed out. may not welcome a measure which would
Mr. Coolidge declares.
constitute
an additional heavy drain on the State's monetary resources.
"Banks," he says, "are an absolute necessity for the transaction of
The
function
of the emergency financial council would be to come to
business. If it were possible to conceive of all of them being closed, starthe relief of banks in difficulties by taking over from them frozen
assets
vation would face most of 1113 inside of 10 days. .. . It is apparent that which
have been depreciated far below their actual value by the depresif their source of currency were cut off by people taking money out of sion. Senator Slater
said that many of the smaller banks whhe solvent
the banks and hoarding it. locking it up, or hiding it away, our banking and sound,
had been seriously embarrassed through huge withdrawals.
system would soon become deranged and the whole nation would begin
to suffer losses. Loans would have to be called, mortgages, cancelled.
prices would fall, wages decline, credit would fail and a general panic
would be produced.
Senator Glass Introduces New Banking Measure
"If all the people attempted to draw their money from the banks, all
Revising Laws Affecting National Bank and
commerce would be reduced to barter, and universal bankruptcy would
Federal Reserve Systems—Would Restrict Use
prevail.
"While particular banks may become unsound, we can feel adequately
of Corporate Funds for Speculative Purposes
certain that our banking system as a 'whole will not become unsound.
Plans Emergency Aid for Banks in Distress—
If it ever did we should find that money we had hidden away would beHelps Depositors—Urges State Branch Banking-come unsound also. ...
"Those who are engaged in hoarding currency are probably no safer
Federal Reserve to Regulate Foreign Loans—
as a class than those who keep their funds in the banks. They are inTreasury Head Displaced on Board.
juring themselves and everybody else. They are in the position of not
taking their part of the risks of life and are trying to make themselves
Seeking safer operation of the Federal Reserve
and
safe by letting others carry their risks for them."
The recovery program advocated by the Hoover Administration and National banking systems, and designed to prevent undue
now before Congress is not mentioned, nor is Mr. Hoover. In his re- diversion of credit into speculative purposes,
the Glass
marks on work, faith and thrift, Mr. Coolidge says the loss of faith by bank probe committee gave to
the Senate on Jan. 21 the
those who suffered unemployment, bank failures and depreciation of
long awaited bill sponsored by Senator Carter Glass (Dem.,
securities is one of the most serious aspects of the depression.
Property owners, business men and investors took the risk of loss, how- Va.). The Washington correspondent of
the New York
ever, when they made their Investments, he holds, and should spend
"Journal of Commerce," in thus reporting the introduction
their time now in working for recovery rather than in complaining,in the
hope that part of their losses may be wiped out by a business upswing. of the bill in the Senate, said:
Employing drastic means to hamper the movement of unemployed
corchannels, the so-called brokers'
Federal Reserve System Reported as Deciding to Slow porate funds into speculative-word
loans for the
Glass Dill undertakes to correct
account of others, the I5,000
a
wide
Up Easy Credit Policy—Fear Expressed in Europe variety of abuses in banking, while providing also for the
strengthening of
the banking system by the extension of branch banking to State-wide
Dollar Would Be Weakened Causes Step.
proportions. It also creates a fund for aiding depositors in closed banks.
The credit expansion policy of the Federal Reserve System
While a sub-committee of the Senate Banking Committee under
the
will be carried out at a slower pace than was originally Chairmanship of Senator Goldsborough (Rep.,Md.)has been wrestling with
measure
Administration
sponsored
the
in
Congress
by Senator Thomas
anticipated in financial quarters, it was learned on Jan. 18, (Rep.,Iowa)and Representative Beedy
(Rep.,Me.)for the aid of depositors
said the New York "Journal of Commerce" of Jan. 19,from in closed banks, Senator Glass has provided
the machinery within the
Federal Reserve system for accomplishing that result.
which we also take the following:
JAN.
23 1932.)
FINANCIAL CHRONICLE
609
The capital of National banks is fixed at not less than 15% o outstanding
deposits, resulting probably in compelling some institutions to increase
their capitalization.
Federal Open Market Committee.
An outstanding feature of the measure would curb the influence of the
New York Federal Reserve Bank in open market policies and foreign market
operations. The bill creates a Federal open market committee, consisting
of the Governor of the Federal Reserve Board and one member from each
of the Reserve districts, to meet in Washington quarterly or oftener, with
additional meetings elsewhere if desired.
Open Market Operations.
No Reserve bank would be permitted to engage in open market operations
except after approval and authorization by the committee. The time, character and volume of purchases and sales in the open market would be
governed with a view to accomodatin • commerce and business and with
The same paper stated that featuring the bill were the regard to their bearing upon the general credit situation of the country.
The conclusions and recommendations of the committee, when approved
following provisions:
1. For borrowing from Reserve banks by groups of member banks on by the board, would be submitted to each Reserve bank for determination
whether it will participate in any purchases or sales recommended.
joint notes with general assets as collateral.
Subject to the powers bestowed upon this committee,the board would be
2. Establishment of a liquidating corporation with the function of buyrequired
to "exercise special supervision and control over all relationships
ing, selling and liquidating assets of closed banks.
3. Setting up an organization to oversee and control open market opera- and transactions of any kind entered into by any Federal Reserve bank with
any foreign bank or banker, or with any group of foreign banks or bankers,
tions of Federal Reserve system.
4. Seeking to regulate national banks in many ways, with especial atten- and all such relationships and transactions shall be subject to such reguconditions and limitations as the Board may prescribe."
lations,
tion paid to affiliates of large banks in cities.
5. Removing the Secretary of the Treasury from the Federal Reserve
Deals With Foreign Banks.
Board.
"No Federal Reserve agent nor any officer, director, employee or other
6. Prohibiting brokers' loans by other than banks.
representative of any Federal Reserve Bank shall participate in any confer7. Branch banking permitted national banks in any State which by local
ence or other negotiations of any kind with the officers,directors,employees,
law permits this type of banking.
or other representatives of any foreign bank or banker without first ob8. Group banking strictly regulated.
taining permission of the Federal Reserve Board. The Federal Reserve
9. To restrict use of Federal Reserve funds for speculation, even in- Board shall have the right, in its discretion, to be represented in any such
directly.
conference or negotiations by such representative or representatives as the
10. Loans subjected to stricter regulation.
Board may designate.
"A full report of all such conferences or negotiations setting forth subjects
From the account in the "Journal of Commerce" we also
discussed, views expressed both on behalf of the Federal Reserve Dank and
take the following:
on behalf of the foreign bank or banker, all understandings or agreements
National Bank Aid.
arrived at or transactions agreed upon, and all other material facts apperThe bill extends to National banks the same general powers as are exertaining to such conferences or negotiations shall be filed with the Federal
cised by State banks, not in conflict with the National banking laws.
Reserve Board in writing and signed by all representatives of the Federal
It restricts rather severely National and member banks in the use of FedReserve Bank attending such conferences or negotiations regardless of
eral Reserve facilities for stock speculative purposes. While permitting
whether or not the Federal Reserve Board shall be represented at such
15-day advances on promissory notes as now, it provides that if during the conference negotiations."
life of such advances the borrowing bank "increases its outstanding loans
Interest Rate Authorization.
to any borrower upon collateral security, or made to members of any organized stock exchange, investment house or dealer in securities, upon any
Authorization is given to National banks to charge a rate of discount
obligation, note, or bill, secured or unsecured,for the purpose of purchasing allowed by the law of the State of its domicile, or a rate of 2% above
and (or) carrying investment securities (except obligations of the United Federal Reserve discount rate of the district in which located, whichever is
States), such advances shall be immediately payable, and such member higher. If no rate is so fixed by State law then it may charge not more than
bank shall be ineligible as a borrower at the Federal Reserve bank of the 7% or 2% higher than the Federal Reserve rate, whichever is higher.
district upon 15-day paper."
The reason for that is that in periods of actual distress, when credits or
The flow of corporate funds into the speculative markets also is curbed. currency is in demand, rediscounting is precluded except at a loss
The bill proposes enactment of the following provisions:
A statement by Senator Glass in explanation of the bill
"Section 33 of the Act entitled 'An Act to Supplement Existing Laws
Against Unlawful Restraints and Monopolies, and for Other Purposes,' is taken as follows from the Washington account (Jan. 21)
approved Oct. 15 1914, as amended, is hereby amended by adding after
to the "Times":
Section 8 thereof the following new section:
The bill is a composite which has been in a state of preparation since the
New Section Given.
subcommittee adjourned the public hearings last February. It is not a
"Section 8(A). That from and after the first day of January 1932
Per- one-man till at all. The subcommittee unanimously authorized me to
son shall be at the same time a director, officer or employee of anyno
bank, report it to the Senate this afternoon. The subcommittee is composed of
banking association or trust company organized or operating under
the
laws of the United States and of a corporation organized for any purpwe Senators Norbeck, Townsend. 13ulkley, Walcott and myself, as chairman.
whatsoever which shall make loans secured by collateral to any individual,
We agreed to a provision which seta up inside the Federal Reserve System
partnership
or corporation other than its own subsidiaries.
association,
a liquidating corporation to liquidate the assets of failed member banks.
"No corporation, foreign or domestic, other than banks
. . shall Federal Reserve banks are required to subscribe to the stock of the liquidatmake to any individual, other corporation (except its own subsidiaries),
private banker or incorporated banker, loans secured by collateral: and ing corporation in the amount of one-half of their surplus. The function
every violation of the provisions of this paragraph shall be punishable by of the liquidating corpor tion would be to go into any failed member bank,
a fine of $5,000 per day during the continuance of such violation.
either National or State, with expert accountants, and immediately ap"No corporation engaged in commerce as defined in this Act shall place
Its funds on deposit with any individual, private banker or banking asso- praise their probable assets and promptly pay to depositors as large a perciation or trust company, except banking associations incorporated under centage as the liquidating corporation might determine. Instead of rethe laws of the United States or of some one of the States or territories ceivers holding the assets for years, and keeping depositors out of their
thereof; and every violation of the provisions of this paragraph shall be money, this proposal enables quick liquidation of failed banks and payment
punishable by a fine of not less than $1,000 per day for each day during
to depositors as soon as possible and, as far as possible.
Which such violation continues."
The plan would relate to any failed member bank still in receivership,
Loans to Affiliates.
as the surplus of the Federal Reserve banks is about $259,000,000. This
No National banking association or member bank could (1) make any would give about $130,000,000 to start with.
loan or any extension of credit to any affiliate organized and existing for the
Accretion to Resolving Fund.
purpose of buying and selling stocks, bonds, real estate or real estate mortThere would be a constant accretion to the revolving fund to be paid
gages, or for the purpose of holding title to any such property. or (2) invest
any of its funds in the capital stock, bonds or other obligations of any such out of the earnings of the Reserve banks in excess of the 6% cumulative
affiliate, or (3) accept the capital stock, bonds or other obligations of any interest to which member banks are entitled. The earnings of the liquisuch affiliate as collateral security to protect loans made to any person, dation corporation are to be returned to the revolving corporation in the
copartnership or corporation, if the aggregate amount of such loans, sum of 70%. That is, 70% of the earnings of the liquidation corporation
extensions of credit, investments and acceptances of collateral security in will be turned back to the revolving fund and the balance of 30% will be
the case of any such affiliate will exceed 10% of the outstanding capital paid as an additional discount to member banks.
stock and surplus of such National banking association or member bank.
This should result in making the Federal Reserve System more attracEach loan made to an affiliate within these limitations would have to be tive to member banks or those wishing to become members, because it
secured by stocks or bonds listed on a stock exchange which have an as- affords an extra dividend and assurance to depositors of member banks that
certained market value at the time of making the loan of at least 20% funds will not be tied up indefinitely, but a percentage of them would be
more than the amount of such loan, or shall be secured by notes, drafts, given to depositors as soon as possible.
The proposal would be a permenent thing. In response to the demand
bills of exchange or acceptances, eligible for rediscount at Federal Reserve
banks, or by bonds or other obligations eligible for investment by savings to do something for non-member banks we have proposed an amendment
banks in the State in which the association or member bank making the to take care of State banks,and authorize an appropriattion of $200,000,000
loan is located. A loan to a director, officer, clerk, or other employee of from the treasury to go to the liquidating corporation in such amounts
any affiliate would be deemed a loan to the affiliate to the extent that the and at such times as the corporation's directors may require. The liquidating corporation, inside the Reserve System, administers the fund,
proceeds of the loan are transferred to the affiliate.
thus averting the necessity of setting up another agency outside.
Compromise on Affiliates.
This is a temporary plan. For a period not to exceed two years after
Senator Glass and some of his associates were inclined toward requiring the Act is approved the corporation may purchase and for five
years hold
themselves
of
their
corporate
member banks to divest
affiliates. A compro- and liquidate assets of any closed State bank,loan to them and
enter into
mise was effected whereby there would be provided searching examination negotiations to secure their reopening under the same terms to
apply to
and some degree of supervision of such corporations with complete publicity National and member banks. Of course,this can be done only where
the
for their reports and prohibition against the identity of stock certificates State laws permit. The corporation is inside the Reserve System and does
as between the banks and their affiliates.
not attempt to seize $50.000,000 of the Reserve Bank surplus for an outside
Some measure of control over group and chain banks is sought. While agency, as other Dills do.
State-wide branch banking is provided in such States where that is perThe subcommittee also proposes to eliminate the Secretary of the Treasmitted, limited by thl bill to institutions with a paid in and unimpaired ury as an ex-officio member of the Reserve Board and authorize
the Presicapital stock of not less than $1,000,000, a curb is placed on chain and dent to appoint six members, leaving the Controller of the
Currency as an
group systems.
es-officio member. This would be a board of seven instead of the
present
The parent bank of a chain is not to be permitted to vote for a director eight. We have restored the requirement that two members of the
board
of a Federal Reserve b nk. A concerted examination would be required, shall be persons with banking experience.
with the publication of reports as in the case of corporate affiliates of
The bill extends to National banks the same general powers
which are
National banks. Group banks are required to dispose of all stocks and bonds exercised by State banks and are not in conflict with National
banking laws.
of issuing affi fates.
The bill also restricts, rather severely, National or member
banks in
Emergency Relief Planned.
The Glass bill undertakes emergency relief for banks in times of stress.
Upon receiving the unanimous consent of the Reserve Board any Federal
Reserve bank would be empowered to make advances to groups of ten or
more member banks within its district upon their joint and several demand
promissory notes in such amounts as the Reserve bank directorate may
determine. Advances could be made to a lesser group if the aggregate
amount of their demand and time deposits constitutes at least 10% of the
entire demand and time deposits of the member banks within such district.
Recipient banks would no required to deposit their individual notes,
made in favor of the group and protected by such collaterd security as may
be agreed upon, with a trustee. A premium of 3i of 1% for the first ninety
days and of 3i of 1% additional to be added each succeeding ninety days
(progressively) would be charged by the Reserve bank. Advances would
be made on paper not now eligible to rediscount under the law.
610
FINANCIAL CHRONICLE
the use of Federal Reserve facilities for stock speculation purposes. It
restrains member banks in making loans for a period of 15 days, on their
direct promissory notes with United States bonds as security, from borrowing more than a certain per cent from the Federal Reserve banks when they
are making loans to brokers for speculative purposes. The bill automatically
withdraws from any bank violating that provision of the law the 15-day
privilege. This can be restored only by unanimous vote of the Federal
Reserve Board.
Prohibit Loans for Speculation.
We make practically the same prohibition against member banks making
loans for others, that is, corporations which want to loan money on call
for stock speculative purposes. This is something which has already been
done by the New York Clearing House.
We undertook to authorize State-wide branch banking by National
banks, tentatively restricting the privilege of States where State branch
banks are allowed.
We undertook, instead of prohibiting member banks from having affiliates, to provide searching examination, some degree of supervision
and complete publicity of reports made through the examinations, and we
prohibit the identity of stock certificates.
We restrict loans by member banks to affiliates to 10% of the capital
stock of the lending bank.
We also undertook some measure of control over chain group banks,
and do not let the parent bank vote for directors of the Federal Reserve
Bank. We require concerted examination and publicity reports just as
in the case of the affiliates. Group banks are required to get rid of all
stock and bonds of affiliates. They must submit to examination by the
Controller, restore double liability by making deposits with the Controller,
giving up voting at Reserve banks, divest themselves of ownership of stock
and bond affiliates and accept certain regulations now made incumbent
on National banks.
Capital Limits Branch Banks.
Returning to the branch banks, no bank can allow branches unless
the parent bank has a capital of $1,000.000.
We have raised the capital of National banks to at least 15% of the
outstanding deposits.
Heretofore open market operations have been conducted practically
by New York banks with assent of other participating Federal Reserve
banks. They had an open market committee without express consent
of law. We establish a committee of 12, one from each Reserve bank,
who will meet and conduct open market operations.
We have taken the subject of foreign securities in hand and have required
that Foreign Reserve banks shall get the approval of the Federal Reserve
Board in such transactions and report them to the Board. They must
report the transactions in advance. This relates to renewals of loans as
well as to new transactions.
We authorize National banks to charge a rate of discount allowed by
law of the State In which they are located, or at the rate of 2% above the
Federal Reserve Bank discount rate in the district where located, of whichever Is higher. If no rate is fixed by law they may charge a rate not more
than 7%,or 2% above the Reserve rate, whichever is higher.
Provide for Interest Spread.
The reason for this is that In periods of actual distress when credits
demand,
rediscounting is sometimes actually precluded
currency
are
in
and
except at a loss. In 35 States there is a legal limit of6% and when Reserve
banks in those States find it necessary to raise rates to 5 or 6%, why it is
impossible for them to get any accommodation from the Reserve banks
except at a loss. Under this they can get a 2% spread.
We provided that no National banking associations or member banks
shall promise to pay to depositors in consideration of maintaining a balance,
a rate of interest in excess of one-half of the rate of interest specified in law,
and when the depositors are bankers who have balances in other banks.
the banking associations or member banks shall not pay more for maintaining the balances with them than the current discount rate in the Federal
Reserve District, or in excess of 231%. or whichever is smaller.
We provide that there may be formed groups of member banks in any
Feder I Reserve District in time of emergency, which groups may agree
to endorse severally and unitedly notes secured by collateral not now eligible for rediscount at Reserve banks. They may have access to rediscount
facilities of Reserve banks at a progressive rate of interest above the ordinary rate required. The rate begins at 1i of 1% for 90 days and Increases
50% for each 90 days. This is responsible somewhat to the suggestion of
Senator Vandenberg on broadening the base.
Robert H. Treman Redesignated As Member of Federal
Advisory Council from New York Federal Reserve
District.
J. H. Case, Chairman of the Board of the Federal Reserve
Bank of New York, in a circular (No. 1080) dated Jan. 18,
addressed to member banks said:
At its meeting on Jan. 14 1932. the board of directors of this Bank redesignated Robert H.Treman,President of the Tompkins County National
Bank,Ithaca, N.Y..as a member of the Federal Advisory Council from the
Second [New York? Federal Reserve District to serve during the year 1932.
George H. Hamilton Elected Governor of Federal
Reserve Bank of Kansas City.
George H. Hamilton has resigned as President of the
Fourth National Bank in Wichita, Kan., following his election as Governor of the Federal Reserve Bank of Kansas
City, Mo.
Offering of $50,000,000 or Thereabouts of Ninety-ThreeDay Treasury Bills—Bids Totaled $191,581,000—
Amount Accepted $50,937,000--Average Rate of
Bids Accepted 2.48%.
Tenders were received up to 2 p. in., Eastern Standard
time, on Jan. 21, at the Federal Reserve banks and their
branches, for a new issue of 93-day Treasury bills to the
amount of $50,000,000, or thereabouts. Announcement of
the new offering was made on Jan. 17 by Secretary of the
Treasury Mellon, who on Jan. 21 stated that tenders of
$191,581,000 had been received to the offering.
[VoL. 134.
The total amount of bids accepted was $50,937,000. The
highest bid was 99.500, equivalent to an interest rate of
about 1.94% on an annual basis. The lowest bid accepted
was 99.332, equivalent to an interest rate of about 2.59%.
Only part of the amount bid for at the latter price was
accepted.
The average price of the accepted bids was 99.358 on a
bank discount basis of 2.48%, which was a slightly more
favorable level than was obtained a month ago.
The new bills will be dated Jan. 25 1932 and will mature
on April 27 1932; the face amount will be payable on the
maturity date without interest. The bills, which are sold
on a discount basis to the highest bidders, will be issued in
bearer form only, and in amounts of $1,000, $10,000, $100,000,
$500,000 and $1,000,000 (maturity value). According to
the "United States Daily," the present issue replaces approximately $51,000,000 of Treasury bills which mature Jan. 25.
Secretary Mellon's announcement of Jan. 17 follows:
The Secretary of the Treasury gives notice that tenders are invited for
Treasury bills to the amount of $50,000,000, or thereabouts. They will be
93-day bills, and will be sold on a discount basis to the highest bidders.
Tenders will be received at the Federal Reserve banks, or the branches
thereof, up to 2 o'clock p. m., Eastern Standard time, on Thursday, Jan. 21
1932. Tenders will not be received at the Treasury Department, Washington.
The Treasury bills will be dated Jan. 25 1932 and will mature on
April 27 1932, and on the maturity date the face amount will be payable
without interest. They will be issued in bearer form only, and in amounts
or denominations of $1,000, $10,000, $100,000, $500,000 and $1,000,000
(maturity value).
It is urged that tenders be made on the printed forms and forwarded in
the special envelopes which will be supplied by the Federal Reserve banks
or branches upon application therefor.
No tender for an amount less than $1,000 will be considered. Each
tender must be in multiples of $1,000. The price offered must be expressed
on the basis of 100, with not more than three decimal places, e.g., 99.125.
Fractions must not be used.
Tenders will be accepted without cash deposit from incorporated bank!'
and trust companies and from responsible and recognized dealers in investment securities. Tenders from others must be accompanied by a deposit
of 10% of the face amount of Treasury bills applied for, unless the tenders
are accompanied by an express guaranty of payment by an incorporated
bank or trust company.
Immediately after the closing hour for receipt of tenders on Jan. 21 1932,
all tenders received at the Federal Reserve banks or branches thereof up
to the closing hour will be opened and public announcement of the acceptable
prices will follow as soon as possible thereafter, probably on the following
morning. The Secretary of the Treasury expressly reserves the right to
reject any or all tenders or parts of tenders, and to allot less than the amount
applied for, and his action in any such respect shall be final. Those submitting tenders will be advised of the acceptance or rejection thereof.
Payment at the price offered for Treasury bills allotted must be made
at the Federal Reserve banks in cash or other immediately available funds
on Jan. 25 1932.
The Treasury bills will be exempt, as to principal and interest, and any
gain from the sale or other dispositiion thereof will also be exempt from
all taxation, except estate and inheritance taxes. No loss from the sale
or other disposition of the Treasury bills shall be allowed as a deduction,
or otherwise recognized, for the purposes of any tax now or hereafter imposed
by the United States or any of its possessions.
Treasury Department Circular No. 418, as amended, and this notice
prescribe the terms of the Treasury bills and govern the conditions of
their issue. Copies of the circular may be obtained from any Federal
Reserve bank or branch thereof.
Congress Completes Action on Bill Providing Additional Capital of $125,000,000—For-FederariiTia
Banks—House and Senate Adopt Conference
Measure.
Congressional action was completed Jan. 21 on a bill
(H. R. 6172) providing additional capital for the Federal
Land Banks, and theMeasure which makes $125,000,000
more available to those institutions, was sent to the President. As to the final action on the bill we quote the following
"United States Daily" of Jan. 22:
_
The House acted first, and concurred In the report of the conference
committees after which it was sent Immediately to the Senate, which likewise approved after some debate had ensued respecting the meaning of
the compromise proposal relating to powers accorded Federal land banks
and joint stock land banks.
Use of Earmarked Funds.
The question was put forward by Senator Robinson (Dem.), of Arkansas,
during consideration of the conference report in the Senate that the conferees
may have made it possible for Joint Stock Land Banks to use some of the
funds earmarked for use in lieu of funds not available because of extensions
of time granted for amortization repayments.
In this view, Senator Robinson was supported by Senator King (Dem.).
of Utah, but Senator Stetwer (Rep.), of Oregon, thought otherwise. The
Oregon Senator declared that whether the language of the compromise
granted the joint stock banks the right to make extensions of time for
repayments was hardly a matter for argument because "the Joint Stock
Banks already have asserted they have that right."
Record Vote Not Taken.
Senator Black (Dem.),of Alabama, who sponsored the plan for providing
extension of time for repayments,saw no ground in the conference committee
Both Senator Robinson and
language that would lead to difficulties
Senator King suggested, however, that the legislation ought to be made
devoid of uncertainties that litigation may not result from imperfection
In it.
There was no record vote on approval of the conference report.
JAN.
23 1932.]
FINANCIAL CHRONICLE
Approved by House.
The House adopted the conference report on the bill after a debate over
the effect of the Senate amendments agreed to in conference between
representatives of the two bodies. At the close of the discussion, Representative Steagall (Dem.), of Ozark, Ala., Chairman of the House Committee on Banking and Currency, in charge of the bill, declared that he
sought action on this legislation at the last Congress but was "defeated
by the Secretary of the Treasury and the Federal Farm Loan Board."
The conference report included a compromise amendment proposed by
the House conferees that section 13 of the Federal Farm Loan Act as
amended (U. S. C., title 12, chapter 7, section 781) be amended by adding
a new paragraph to read as follows: "Tenth, when in the judgment of the
directors conditions justify it, to extend, in whole or in part, any obligation
that may be or become unpaid under the terms of any mortgage, and to
accept payment of any such obligation, during a period of five years or
less from the date of such extension in such amounts as may be agreed
upon at the date of making such extension. The sum of $25,000,000 of the
amount authorized to be appropriated under section 5 of this act, as amended
shall be used exclusively for the purpose of supplying any bank with funds
to use in operations in place of any amounts of which such bank may be
deprived by reason of extensions made as provided in this paragraph."
This compromise language was approved by the House and was subject
of ratification by the Senate.
The total authorization of Federal funds under the bill, as approved by
the House is $125,000,000.
Other Provisions.
The conference report agrees to Senate amendments to remove doubt
as to the applicability of certain provisions of existing law to the Federal
Land Bank stock for which the Secretary of the Treasury is authorized
to subscribe, which is made non-voting stock. It provides that the Federal
Farm Loan Board may require such stock subscribed for by the Secretary
of the Treasury to be paid off and retired "out of available resources of
the bank"; makes the provisions regarding reserve requirements of Federal
Land Banks and of national farm associations effective July 1 next; and
that dividends declared by Joint Stock Land Banks shall be subject to
the approval of the Federal Farm Loan Board. It also provides that 10%
of the net earnings of every national farm loan association shall semiannually be carried to reserve account until the account is equal to the
25% of the association's outstanding capital stock.
Representative Steagall told the House that all talk of a moratorium on
Land Banks is mere words.
Representative Stafford (Rep.), of Milwaukee, Wis., asked if the extensions of time allowed under the bill as agreed on in conference must be
subject to the approval of the district land bank. Mr. Steagall replied that
would be done by the district.banks.
Allocation of Funds.
Representative McFadden (Rep.), of Canton, Pa., told the House it
was authorizing the Secretary of the Treasury to subscribe to $125,000,000
of the stock of the Federal Land Banks, to be distributed among the 12
banks of that system, and to extend for five years the obligations of the
borrowers from those banks and that the whole assets of the Federal Farm
Loan Board are being made available to all borrowers unable to meet their
payments.
Representative Jones (Dem.), of Amarillo, Tex., Chairman of the House
Committee on Agriculture, asked about the allocation of $25.000,000 to
take care of worthy cases of delinquent payment installments. Mr. Steagall
replied that the bill carries authorization of $125,000,000 with the proviso
that $25,000,000 of it shall be used exclusively in connection with extensions of loans to borrowers to replace any loss by the banks.
The conference report was adopted by viva voce vote.
611
measures was forecast. The "Times" also had the following to say in noting the adoption of the bill by the House
on Jan. 15:
The only disagreement is expected to be over the provision of the House
bill to allow notes and exchanges secured by the Reconstruction Finance
Corp. to be rediscounted at Federal Reserve Banks. which the Senate
voted against. The Senate also attached a "rider" to its bill, providing
that an additional $50,000.000 be lent through the Secretary of Agriculture to farmers for crop production. Repeated attempts to include
this provision in the House bill were met with points of order, sustained
by the Chairman.
The House measure provides, however, that $50.000,000 of the original
$500,000,000 capital shall be allocated for loans to agricultural and live
stock credit organizations.
Party lines were obliterated In the House vote. The only group that
maintained its identity was the small band of "allied Progressives" led by
Representative La Guardia and composed chiefly of Western and Northwestern farm members. This group fought the bill all day and voted
against it. Some Southern Democrats and one Tammany member, Representative Griffin, also joined the opposition.
Many Changes Voted Down.
The bill reached the voting stage early in the evening after weathering
a bombardment of amendments. Thirty-four major changes were proposed, aside from motions to strike out words and to destroy the bill,
but only three were adopted. One of the latter, offered by Representative
Rayburn, Democrat, of Texas, would prevent commissions being paid
to intermediaries in obtaining loans from the Reconstruction Finance
Corp.; another by Chairman Steagall of the Banking and Currency Committee, would make bonds of the Corporation lawful investments for
fiduciary, trust and public funds under the control of the United States
and the other by Representative La Guardia, would impose a criminal
penalty against any officer or employee of the Corporation found using
information, obtained in their official capacity, in speculating in the securities market.
The first rap of the gavel was a signal for more than a score of members
to jump to their feet with suggested changes. As soon as the amendment
was acted on others were proposed, ranging from the inclusion of farmers
to the printing in currency of the $2,000,000,000 to be raised by the Corporation.
Closure was resorted to time and again by the Democratic sponsors of
the bill. Some of their own partisans complained of this application of the
"gag rule," for the use of which last session they criticized the Republican
leadership. But the leaders were determined that the bill should reach
final action to-day. To this end they had the complete co-operation of
Representative Warren of North Carolina, who presided during consideration of the bill.
Details regarding the bill as passed by the Senate on
Jan. 11 were given in our issue of Jan. 16, page 436. Further
action in the Senate on the bill was delayed on Jan. 16,
when Senator Blaine of Wisconsin objected to the motion
of Senator Walcott of Connecticut to substitute the House
bill for the Senate bill and send it immediately to conference.
It was noted in the "Times" Washington dispatch Jan. 16:
Two distinct bills are now before Congress because the House refused
to substitute the Senate measure yesterday and insisted on its own. Under
the rules, both branches must approve the same bill, even though It may
contain conflicting amendments which can be adjusted in the conference
committee.
As we stated in these columns Jan. 16 (page 436) the
bill as passed by the House on Dec. 19 (noted in our issue of
On Jan. 18 the Senate substituted its bill for the House
Dec. 26, page 4253), provided $100,000,000 additional measure, and ordered it to conference to reconcile the differcapital for the Federal Land Banks. The bill passed by ing provisions. In indicating this action on the part of
the
the Senate on Jan. 13 proposed $125,000,000 additional Senate, the "United States Daily" of Jan. 19 said:
capital. The Senate bill, also carried a provision (not in
Before the Senate acted, however, numerous attempts were made to
the House bill) earmarking $25,000,000 for specific use.
revise the language of the Senate bill by further amendment, and some of
Bill Creating Reconstruction Finance Corporation
Finally Approved by Congress—House and Senate
Adopt Conference Report.
With final action by Congress yesterday (Jan. 22) on the
bill creating the $2,000,000,000 Reconstruction Finance
Corporation, the measure was ready for the President's
signature.
Yesterday action on the measure on the part of Congress
constituted adoption by the House of the conference report
on the bill, the Senate later in the day accepting the report.
The differences between the provisions in the Senate bill
(passed by that body Jan. 11) and those in the House bill,
(passed Jan. 15) were finally adjusted on Jan. 20, and the
conference report was laid before both branches of Congress
on Jan. 21. The Washington correspondent of the New
York "Journal of Commerce" on Jan. 21 stated:
A difference of opinion seems to have arisen among Senate and House
conferees over the extent to which the measure should go on the side of
aiding in stopping deflation. There were some among the latter who thought
seriously that the measure would permit of vast currency circulation and
apparently that was one reason at least why they agreed so readily to the
removal of the House provision contemplating the rediscounting of the
securities in the Federal Reserve system.
White House Stand Given.
Such proposals were made, it was learned, but finally rejected, and it is
even reported that the White House was adverse to the too great inflation
that would have occurred if the proponents of the proposal were successful.
In its final form, the measure does not permit of rediscounting or currency
circulation on the basis of the Government bonds that are to be Issued.
Following the passage of the bill by the House late in the
day Jan. 15, by a vote of 335 to 55, it was stated in the
New York "Times" Washington advices Jan. 15 that quick
adjustment of the differences between the House and Senate
them were successful. The principal debate concerned a renewal by Senator
Copeland (Dem.), of New York, of his effort to include a provision making
loans available to States and municipalities. The Senate ultimately reaffirmed its earlier decision as to this proposal by rejecting the Copeland
amendment and all others to the same end.
Conferees Named.
To clear the way for opening of the conferences once the House is ready to
proceed, Senator Walcott (Rep.), of Connecticut. in charge of the bill In
the Senate, asked and obtained immediate appointment of the Senate
conference committee. Its members, besides Senator Walcott, are Senators
Norbeck (Rep.), of South Dakota; Brookhart (Rep.), of Iowa; Townsend
(Rep.), of Delaware; Fletcher (Dem.), of Florida; Glass (Dem.), of Virginia, and Bulkley (Dem.), of Ohio.
Among the changes made in the Senate bill as its language became the
text of the House bill through substitution of all excepting the enacting
clause was a provision by Senator Howell (Rep.), of Nebraska, limiting
the amount of loans through any one corporation of the potential two
billion dollars which the corporation may have available to "5% of its
resources, or $100,000,000."
Agricultural Loans.
The Senate also accepted an amendment by Senator Wheeler (Dem.),
of Montana, which would require the Secretary of Agriculture in making
loans provided under the bill to give first consideration to farmers in regions
where there were crop failures in 1931.
The question of loans to municipalities was before the Senate simultaneously with the motion by Senator Walcott to strike out all of the text
of the House bill after its enacting clause and to insert in its place the text
of the Senate measure (S. 1) which has the same purpose.
Senator Walsh had the telegram from J. M. Curley, mayor of Boston,
read before Senator Copeland had announced he would offer an amendment
making the facilities of the Corporation available to municipalities. The
amendment which he offered, he said, was slightly modified from the form
in which it was considered and rejected while the bill (S. 1) was pending
He suggested that the limitation of $200,000,000 placed on such loans
ought to meet some of the objections then voiced.
Mr. Robinson's Stand.
The support of Senator Robinson, of Arkansas, the minority leader, was
announced. Senator Robinson explained that he found difficulty in supporting the whole proposal except as an emergency measure, and that
since it was an emergency measure thought Congress should be as generous
as was possible that the full amount of available relief would be accent:
plished.
612
FINANCIAL CHRONICLE
According to the "Times" Senator Copeland's amendment
voted down for the second time (designed to authorize loans
to New York and other large cities), differed from his original amendment, in that it limited to $200,000,000 loans
that might be made to cities and States at any one time.
It was defeated by a vote of 53 to 24. It was also voted
by the paper from which we quote that the chief point of
difference in the Senate and House. bills is over the rediscount feature in the House measure, which would make the
Finance Corporation's bonds subject to rediscount by the
Federal Reserve Banks and require the allocation of 10%
of the Corporation's capital to agricultural credit associations.
On Jan. 19 (we quote from the "Times") administration
financial experts informed the Republican conferees on the
bill, as Senate and House conferees began their sessions,
that President Hoover was opposed to making the bonds of
the Corporation eligible for rediscount by the Federal Reserve
banks. The account from which we quote continued:
[VOL. 134.
must now appoint three Democrats. Aside from the Government officers,
salaries of the directors were fixed at $10,000.
Names Institutions for Loans.
Refusing to accept the La Follette amendment, stipulating that "other
bona fide institutions" than those specially named may receive loans, the
conferees named specifically as beneficiaries "any bank, savings bank, trust
company, building and loan association, insurance company, mortgage
loan company, credit union, Federal land bank, joint stock land bank,
Federal intermediate credit bank, Agricultural Credit Corporation, Livestock Credit Corporation," organized either under State or Federal law.
In addition, provision was made for the loans to closed banks and to the
railroads. The bill did not confine these loans to steam railroads.
The measure also includes aid to exporters, to be extended through
banking or financial institutions.
Another important action was acceptance of the House language making
the corporation's securities liable to surtaxes, in addition to the estate,
inheritance and gift taxes mentioned in both Senate and House bills. Otherwise the bonds, notes and debentures of the corporation are tax-exempt.
Under the conference agreement, the corporation must make and publish a quarterly report to Congress, stating the aggregate of loans to each
class of borrower, the number of borrowers in each State, and the assets
and liabilities of the corporation.
The report, which must be first made Aprll 1. also will show the names
and compensation of all persons receiving more than $400 monthly, exIn an effort to settle the chief point of controversy between the House cept the "lay" directors, who are limited to $10,000, and the Government
and Senate measures the Administration suggested the following sub- officers, whose pay must not exceed that from the Federal establishment.
stitute for the rediscount section of the House bill and for the Senate
Discount Differences Eliminated.
section, which declares that the obligations of the corporation shall not
be eligible for rediscount:
Principal interest in the conference report centered around the agreement
to purchase
the
"The Federal Reserve banks shall have the same powers
under Section 14 barring the corporation's securities from rediscount or purchase at
and sell obligations of the corporations as they havenotes
of the United Reserve Banks.
of the Federal Reserve Act with respect to bonds and
The House section, which was rejected, permitted these banks, at a
States."
commercial paper, to discount papa'
Ogden L. Mills, Under-Secretary of the Treasury, and Eugene Meyer, rate of 1% above the rate on 90-day
not
secured
by obligations of the corporation, to make advances to member
did
substitute
the
Governor of the Federal Reserve Board, said that
obligations, to use all paper so acquired
make the bonds eligible for rediscount, but Senators Glass and Bulkley, banks on notes secured by such
and to purchase and sell such obligations, just as Reserve Banks do with
Democratic conferees, were unwilling to accept this interpretation.
notes.
and
perrespect to Federal bonds
The two Senators objected also to acceptance of the substitute as
The Senate bill, however, stated the obligations would be fully guarmitting the purchase of bonds of the corporation by Federal Reserve
anteed by the Government as to principal and interest, and that the Secrebill.
Senate
the
by
banks,which is prohibited
if necessary, buy the corporation securities,
The conferees variously interpreted the Administration's proposal and tary of the Treasury shall,
cash by issuing Government securities. All transdecided to postpone consideration until the less controversial sections are securing the necessary
actions by the Secretary in the corporation's securities are to be considered
adjusted. . . .
as part of the public debt, but "such obligations shall not be eligible for
Agreement on Two Points.
discount or purchase by any Federal Reserve Bank."
The conferees met at 2:30 o'clock after the House, by vote of 183 to 167.
Text of the Clause Approved.
adopted Representative LaGuardia's motion instructing the House conferees to concur in the Senate amendment limiting loans to any corporation
conferees, the part of the bill relating to the securities
the
by
As
adopted
$100,000,000.
to
or its subsidiaries
The House conferees named were Representatives Steagall, Bland, read:
"The Secretary of the Treasury, in his discretion, is authorized to purStevenson, Strong and McFadden. They met with Senators Walcott,
the corporation to be issued hereunder, and for
Norbeck, Brookhart, Townsend, Glass, Bulkley and Fletcher, the Senate chase any obligations of
such purpose the Secretary of the Treasury is authorized to use as a publicconferees.
from the sale of any securities hereafter
proceeds
Before recessing at 6 o'clock the conference agreed to accept the Senate debt transaction the
Liberty Loan Act, as amended, and the purposes
provision making the Federal Land Commissioner an ex-officio member Issued under the Second
may be issued under the Second Liberty Bond Act,
of the corporation board, instead of the Secretary of Agriculture, as pro- for which securities
as amended, are extended to include any purchases of the corporation's
posed by the House bill.
It also adopted the Senate "rider" appropriating $50,000,000 to the obligations hereunder. Treasury may at any time sell any of the obligations
"The Secretary of the
Secretary of Agriculture for loans to farmers, instead of the House section
the Corporation acquired by him under this subsection. All redempallocating $50,000,000 of the corporation's capital for loans to agricultural of
tions, purchases and sales by the Secretary of the Treasury of the obligations
credit associations.
the Corporation shall be treated as public debt transactions of the
of
No final agreements were reached at the night session, which adjourned
United States. Such obligations shall not be eligible for discount or purat 1 o'clock, and Senator Walcott. Chairman of the conference committee. chase by any Federal Reserve Bank."
doubted if it would complete Its work "before late to-morrow afternoon."
Practical operation of this clause will be no difficult matter, according
Reported agreements on eliminating the House rediscount provision and
to Treasury officials. If the Treasury desires to purchase the Corporation's
on retaining the House provision for loans to suspended banks were denied notes, bonds or debentures, it will issue an equal amount of government
by the conferees.
securities with which to make the purchase.
At the outset of the session Senators Walcott and Strong were furnished
with recommendations prepared by Administration officials, which set
Could Avoid Any Conflict.
forth objections to both the House and Senate forma of the bill and outlined
Cases might arise, it is said, where the Treasury Finance Corp. might
acceptable changes.
require cash simultaneously, but if both attempted to sell securities they
Complete agreement on all the controversial features of might face an unfavorable market. However, if the Treasury attempted
the sales alone, it could issue its securities in order to obtain cash for itself
the bill was reached late in the day on Jan.20—the "Times" and
the Corporation also. The Corporation's debentures would be purWashington correspondent indicating as follows the outcome chased by the Treasury from the sale of its own securities. Later, it might
be possible to sell the Corporation's issue to the public.
of the conferees' labors:
Senator Walcott, who with Representative Strong, introduced the reThe outstanding point of difference was settled when the conferees agreed spective
Senate and House bills spoke enthusiastically after the conference
securities purchasable
to the Senate language which makes the corporation's
the project.
of
nor purchasable
and salable at the Treasury, but neither rediscountable
The Finance Corporation will have an initial capital of 3500.000,000,
at Federal Reserve banks.
able to buy the corpora- but can issue bonds or other obligations not to exceed three times the
The Administration wanted the Treasury to be
them purchasable at the Reserve paid-in capital, which comes from the Treasury.
tion bonds, but also desired to have
Senator Walcott called attention to the fact that monoy is "not to he
and Bulkley of Ohio sue
banks, a point which Senators Glass of Virginia
spent," but loaned, to "relieve non-liquid collateral and substitute cash
cessfully resisted.
to authorize the corpora- In order to aid the financing of agricultural commodities and industry,"
Through a new clause, the conferees agreed
to aid in rehabilitating and to help closed banks and the railroads.
tion to lend up to a maximum of $200,000.000
The conferees agreed on a maximum of $100,000,000 to be loaned to
Senator Walcott explained, is
closed banks or banks In liquidation. This,
supplementary to the $150,- any one institution, Senator Walcott explained, instead of twice that sum,
to relieve distressed depositors and will be
"depositors' relief corporation," as the House provided. Railroads will receive loans when the corporation
000,000 carried in another bill to create the
the economic de- directors decide that the roads are unable to obtain "funds upon reasonanother part of President Hoover's program to fight
able term through banking channels or from the general public".
pression.
More Funds for Farm Loans.
Government Guarantees Bonds.
of AgriLikewise, a large sum of money is set aside for the Secretary
The bill, as agreed upon by the conferees, states:
suffered crop failures
who
those
especially
farmers,
to
direct
culture to lend
"The said obligations shall be fully and unconditionally guaranteed both
would be $50,000,000
last year. Senator Walcott stated that the maximum
said it could reach as to interest and principal by the United States and such guaranty shall
but Representative Steagall, a House conferee,
be expressed on the face thereof."
$200,000,000.
Further, if the corporation is unable to pay its obligations on demand,
expanThe conflict of view is partly over whether the words permitting
the
Treasury must take the responsibility of payment, as thus expressed:
issues three times
sion of the corporation's $500,000,000 capital by bond
"In the event that the corporation shall be unable to pay upon demand,
that large would also apply to the maximum of the loans to farmers. Details
when due, the principal of or interest on debentures, boncla or other such
of the phrasing will be adjusted to-morrow when the conferees inspect a
issued by it, the Secretary of the Treasury shall pay the amount
obligations
differences.
printed bill and iron out the
the Treasury thereof, which is hereby authorized to be appropriated out of any moneys
The conferees decided that in addition to the Secretary of
In the Treasury not otherwise appropriated, and thereupon, to the extent
and the Governor of the Federal Reserve Board, the Farm Loan Comto all
of the amount so paid, the Secretary of the Treasury shall succeed
missioner should be a member of the governing board, instead of the Secthe holders of such notes, debentures, bonds or other obliof
rights
the
bill.
House
the
in
provided
retary of Agriculture, as
that four gations."
Also, the conferees discarded the House language providing
Loans may be made to receivers of railroads or to railroads in process
shall be divided
additional "lay" directors, appointed by the President,
-State Commerce Commisthat of all the of construction, upon the approval of the Inter
evenly politically and accepted the Senate clause, which says
The corporation may make loans during a period of one year, with
sion.
party.
one
of
members
be
shall
four
seven directors, not more than
a possible extension of another year by Presidential authority. The
That means that as President Hoover has already named General Dawes
years
life of the loans is for three years, but they may be extended to five
as President of the Corporation, and since Governor Meyer, Secretary
conditions.
er Bestor are Republicans, the President under certain
,
Mellon and Farm Loan Commissio
FINANCIAL CHRONICLE
JAN. 23 1932.]
President Hoover Requests Appropriation by House of
$500,000,000 for Capital of Reconstruction Finance
Corporation.
A request for funds to the amount of $500,000,000 in
behalf of the Reconstruction Finance Corporation was made
as follows in a letter addressed by President Hoover to the
Speaker of the House:
613
Senator Watson (Rep.), of Indiana, Chairman of the Committee holding
the hearings and sponsor of the bill, inquired whether the mortgage bankers
might have some selfish interest in opposing the legislation. Mr. Cody
said in reply that the selfish interest they had was represented by a "natural
desire" to protect the underlying securities outstanding and the values
represented.
An amendment to the fourth section of the bill was suggested by Mr.
Lofgren to allow mortgage security corporations to share in its benefits.
He explained that the present language excluded such companies, because
they were not organized under State banking laws, but under other statutes.
WHITE HOUSE
Washington.
Suggests Amendment.
Mr. Lofgren suggested the following amendment to Section 4:
State
Such of the following as are duly organized under the laws of any
The Speaker of the House of Representativee:
banking
or of the United States and are subject to inspection under the
other similar laws, or whose mortgage collateral is
or
laws
insurance
or
the
consideration of Congress
I have the honor to transmit herewith for
guaranteed as to the principal and interest by a company so organized,
an estimate of appropriation for the Treasury Department for 8500,000,000, inspected and regulated, shall be eligible to become a member of a home
for the fiscal year 1932 and to remain available until expended, for sub- loan bank.
scription to capital stock, Reconstruction Finance Corporation.
To the list of institutions specifically named, Mr. Lofgren proposed
I am transmitting this estimate of appropriation at this time so that to add the classification of mortgage loan companies. Ile said he knew
the important operations of the Corporation may be commenced at the of no mortgage group that would object to inspection by the home loan
earliest possible date.
bank agents.
Further details regarding this estimate are set forth in the letter of the
Mr. Lofgren said many mortgage companies began to feel the pinch of
which
is
Budget,
the
transmitted herewith.
Director of the Bureau of
tightening money as early as 1928. At the present time, he said, approxiRespectively,
mately one-third ofthe 10,000 mortgages held by his company are in default.
"We tried to go on and help our borrowers," Mr. Lofgren said,"and to
HERBERT HOOVER.
foreclose as few as possible. We gave extensions wherever the borrower
But in the meantime, our own bonds matured, and
Charles G. Dawes and Eugene Meyer to Direct Recon- showed good faith.
Consequently, we
they had to be paid. We could not extend them.
struction Finance Corporation—Secretary Stimson found ourselves in a frozen condition for lack of sources of refinancing."
C., and Senator
to Replace Gen. Dawes as Chairman of Delegation
W. IT. Wood, a commercial banker of Charlotte, N.
Michigan, brought up the question of a need of the
of
(Rep.),
Couzens
to Arms Conference at Geneva.
Senator
home loan system as a permanent part of the banking structure.
and Senator
In anticipation of the enactment by Congress of the bill Couzena doubted the need of it in normal times,and Mr. Wood
loan
home
the
Carolina, agreed that possinly
creating the Reconstruction Finance Corporation, President Morrison (Dem.), of North
banks might produce a tendency to overbuild.
number of banks
Hoover announced on Jan. 19 that he had chosen Charles
Senator Watson said he had believed that a smaller
provides. He added that he
G. Dawes to serve as President of the Corporation and that might serve as well as the 12 for which the billthere
could be only sympathy
had been told by authorities, however, that
Eugene Meyer would be Chairman of the Board of the Cor- for
bank located
the idea that each area of the country should have a
poration. At the same time the President made known that within its section and managed by persons familiar with conditions locally.
interested
Theophtlius White of Baltimore, told the Committee he was
in view of the new duties imposed on Gen. Dawes, the latter
Co. and
in temporary financing. He said the Continental Mortgage
would be replaced as Chairman of the American delegation only
in such
been
had
before
never
Calvert Mortgage Co., which he represented,
to the Geneva conference on disarmament by Secretary of a position as they are now, and it is only because they cannot refinance.
were in default," said Mr. White.
State Stimson. In our issue of a week ago (page 412), we "Fifty per cent of our mortgages
The mort"They were all on small homes and had been well paid before.
Jan. 211932.
noted the intention of Gen. Dawes to resign as Ambassador
to Great Britain following the Geneva Conference. The following is President Hoover's announcement regarding those
chosen to head the Corporation:
I have requested General Dawes to accept the position of President of
the new Reconstruction Finance Corporation. It is gratifying to state
that he has accepted. Eugene Meyer, Governor of the Federal Reserve
Board, will also be Chairman of the Board of the Reconstruction Corporation.
In order that we may Preserve the non-partisan character of the institution, the other directors will be chosen after consultation with leaders
of both political parties upon completion of the legislation.
I announce General Dawes' name at this time because of the required
change in plans as to the Chairmanship of the delegation to the arms
conference. Otherwise. General Dawes would be leaving for Europe
to-morrow.
The further announcement by the President said:
In view of the change in General Dawes' plans, Secretary Samson
has undertaken the Chairmanship of the delegation to the arms conference
at Geneva. The Secretary will not attend the opening meetings, but will
take part In the work of the commission after the preliminaries have been
disposed of. Ambassador Gibson will be Acting Chairman of the delegation.
Head of Mortgage Bankers' Association at Senate
Inquiry Says Plan to Create Home Loan Discount
Bank System Puts Government Further Into Business—Measure Favored by Other Witnesses.
The first opposition to be registered before Congressional
committees against the legislation creating a home loan
discount bank system was presented, Jan. 19, to the Senate
subcommittee holding hearings on the Watson bill (S. 2959)
which at the same session heard three other witnesses declare
there was extreme need for the sort of financial assistance
proposed. The "United States Daily" of Jan. 20 gave the
following account of the hearing on Jan. 19:
Hiram S. Cody of Chicago, President of the Mortgage Bankers' Association, declared he could not make his opposition to the legislation too outspoken. Ho saw little need of it even as an emergency measure and
denounced it as proposal for permanent addition to the country's banking
structure.
Such legislation as that proposed, he assorted, tended to put the Government "further into business and to give supervisory control over property."
The Committee was told at the same meeting by H. J. Lofgren of South
Orange, N.J.,and Thoophilus White of Baltimore. Md.,mortgage company
representatives, that without such legislation they saw no immediate
hope of new funds to aid in home financing.
Need of Permanent Agency.
W. it. Wood, a Charlotte, N. C., banker, supported the statements
of the two proponents of the bill generally, and added that he believed
there was need for an agency of a permanent character to which loaning
institutions might go for help in case of emergencies. He pointed out
also that the loaning firms of necessity were under obligation to care for
their local demands, but they were not always equipped with sufficient
resources to meet those demands.
The Mortgage Bankers' Association has a membership of approximately
400, mr. Cody said, and he gave it as his opinion that they were able to
tnire for the demands, which he said was best illustrated by the fact that
they now have between 38,000.000,000 and 810,000,000,000 in loans
outstanding.
gages average about 84,000.
issue of 500."Heretofore, and even in the early part of 1931, we had an
refinancing.
000 in bonds mature. We had no trouble whatsoever in
banker
Recently, we had occasion to feel out the bond market, and not a
would consider handling an issue."
Prepared Statement Submitted by Mr. Cody.
Mr. Cody's prepared statement follows in full text:
This bill is described as an aid to the homeowner.
In making a home loan, the mortgage banker demonstrates his confidence
half
in the owner, and in the property, by advancing funds to acquire a
every
interest in the home. He is a silent partner in the enterprise, and
welfare—
owner's
the
in
interest
genuine
consideration leads him to have a
the interest of a partner, not a promoter.
industry has
A home is financed, completed and sold. The building
the sale.
collected its profit. The realtor has received his commission on
the loan is
until
partnership
his
continue
But the mortgage banker will
ocpaid, possibly 20 years later. During this period there are frequent
casions for the mortgage banker to consult with the owner on his problems,
in
especially
payments,
financial and otherwise. Extensions of principal
and
case of unemployment or illness, have averted countless foreclosures
forced sales.
Advocates of this bill contend:
1. That it will relieve the home owner who now fears foreclosure, owing
to the alleged inability of financial institutions to refinance existing mortgages.
2. That it will help the manufacturers of building supplies and members
of the building trades. According to estimates made public by the Federal
Government, it would be possible to construct 3,000,000 residences within
the next five years, if the plan should be put into effect.
3. That it will revive the real estate market and stabilize existing values.
Those not favoring the bill contend that:
1. The normal rate of construction of new homes is between 300,000 and
400,000 per annum. The advocates of this bill estimate that the Federal
home loan banks will make possible the construction of 3,000.000 homes
within the next five years or 800,000 annually.
The present rate of population growth and obsolescence of existing struotures, does not warrant increasing the annual rate of home construction
50% more above the foregoing normal figures.
Such an abnormal promotion of buicUing activities could only bring
temporary prosperity to the building and real estate interests. It would
add greatly to the present over-built condition with an additional depreciation of real estate mime. A drastic increase of foreclosures in existing
home mortgages would follow with resultant distress and loss to present
home owners.
This would also adversely affect the basic security behind the financial
institutions which to-day hold $26,000,000,000 of mortgages.
The President's Conference on Home Building and Home Ownership
reported on Dec. 4 1931: "Numerous suggestions have been received for
encouraging easy credit through new first mortgage financing methods.
While undoubtedly they would for a time provide employment, there can
be little question that the price would be a further deflation of the values of
existing homes."
2. Existing credit agencies, augmented by the Reconstruction Finance
Corporation, the National Credit Corporation, and the strengthening of
the Federal Land Bank System, should be given an opportunity to demonstrate their usefulness in the present situation. Emergency relief for
frozen mortgage assets is provided by the Reconstruction Finance Co
ration.
There is no need in normal times for any additional agency, such as the
proposed Home Loan Bank. On the contrary, the present over-built
situation was partly created by the over-supply of mortgage funds in recent
normal years. Again quoting the President's Conference on Home Buildbag
and Home Ownership:"The American system of first mortgage finance has
not only enabled our country to build a housing structure upon an unp
dented scale, but we find it even to-day during the depression financing new
structures for which there is an economic need."
614
FINANCIAL CHRONICLE
Foresees Depletion of Income from Taxes.
The emergency situation relates to existing frozen mortgages in certain
areas. That situation is comparable to the inability of railroads to accomplish refinancing of their existing bonded indebtedness through customary
financing agencies. To relieve that situation a temporary organization
is set up in the Reconstruction Finance Corporation. There is no more
need for a permanent organization to relieve the frozen real-estate mortgage
situation than there is for a permanent organization to relieve frozen railroad bonds, or to relieve other troubled industries.
3. The bonds of the proposed Home Loan Bank System cannot be sold
at a low enough interest rate to allow a reasonable interest rate to the
member borrower, as the expenses of the new system would have to be paid
from the interest differential. This would be particularly true after the
Government had floated bonds for the Reconstruction Finance Corporation,
for the deficit, for farm relief, and for other relief bills.
4. The sale of Home Loan Bank Bonds, tax exempt, would further deplete
tax income to the Federal Government,the States and smaller governmental
units. It would depreciate other Government securities. The additional
$125,000.000 proposed for the Federal Land Banks, predicates the issuance
of additional tax exempt bonds, and the $150,000,000 for the proposed
Home Loan Bank predicates the issuance of $1,800.000,000 of tax exempt
bonds.
5. We should profit by the experience of the Federal Land Bank System
during the current depression, when their bonds are depreciated, new
bonds cannot be sold, comparatively little can be loaned and the land
banks must be furnished additional funds by the Government to restore
liquidity. At a time when these Government agencies should be meeting
an emergency, they are using funds collected from their borrowers to purchase, at a discount, bonds sold to the public at par, the effect being a
loss to the bondholder, and an additional tax burden on the taxpayer to
maintain this Government system.
6. The fiscal situation of the Government should be considered. To
provide for already scheduled expenditures of the Government, for the
capital needs of the Reconstruction Finance Corporation, and for the
Federal land banks (not including the refinancing of maturing Governmental obligations) will require financing upon government credit during
1932 of $3,000,000,000 to $4,000,000,000 of new money; in other words,
the creation of new debt to this amount. This program calls for an increase in taxes and borrowing greater than ever required in peace times.
To provide up to $150.000,000 more for the proposed Federal Home Loan
Bank would add to the already heavy burden.
7. There has been a strong and growing tendency for the Federal Government to usurp the function of State governments in supervision of local
private business. This bill is a further effort along this line. It proposes
to take the control of real-estate finance out of the States and put it in the
hands of the Federal Government.
Sees Adverse Effect on Mortgage Securities.
Our members have given full support to remedial measures designed to
meet the present emergency, notably the Reconstruction Finance Corporation. They have rendered active service on committees of the President's Conference on Home Building and Home Ownership. Their interests are identical with those of the home owner. If they could see any
benefit to the home owner in this bill, it would have their enthusiastic
support.
We do not challenge the sincerity of the sponsors of this measure. We
do not assert that the organizations back of it are actuated by selfish
motives, but in behalf of the unorganized home owners, our partners,
we earnestly protest against any permanent legislation like the Federal
Home Loan Bank, which, in our judgment, would adversely affect the
security behind the $26,000,000,000 of mortgage assets of our financial
Institutions, and would result in the loss of an untold number of homes
which the owners, in the face of every obstacle, are now struggling to
protect.
Realty Inflation Is Seen in Proposal to Create Home
Loan Discount Bank System—Senate Committee
Told Speculative Building of Houses Will Increase
If Measure Goes into Effect—Ultimate Recession
in Values Forecast—Objection Raised That Plan
Does Not Make Provision for Second Mortgage
Money.
Fear that the creation of a home loan discount bank system
would result in inflationary tendencies that would work
more harm than good was expressed by witnesses testifying
Jan. 20 before the Senate subcommittee holding hearings
on the Watson bill (S. 2959). According to the "United
States Daily" of Jan. 21 (from which the foregoing is taken)
all of the witnesses heard at the session were opposed to the
legislation and two of them—Winston K. Ogden of Summit,
N. J., and Thomas F. Clark of New Haven, Conn.—told
the Committee they foresaw added burdens of taxation as
well as an inflationary development. The "Daily" further
reported the hearing as follows:
Mr. Ogden declared that "speculative builders are Just waiting around
for some such move as this" to start operations again, and he predicted
they would force an ultimate depression in prices far below the present level.
Viewed As Unsound.
Mr. Clark's opposition to the measure was predicated largely, he said,
on the ground that the proposal was unsound in law or in business. He
said it would not supply funds for the individual who desired to build a
moderate-priced home "as advertised," because the difficulty faced by
those persons is the lack of second-mortgage money.
Another witness, Henry R. Robins of Philadelphia, was "disgusted"
with business interest that "run to Washington to dip into the Federal
Treasury every time they get in a Jam." While denying that enactment
of the legislation would affect his title business, he said he could see how
SR would greatly disturb the real-estate business
generally.
Message of Realty Group.
In opening the hearing Senator Watson read a telegram from the National
Association of Real Estate Boards which protested statements before the
Committee. Jan. 19, on behalf of the Mortgage Bankers' Association of
America. The Association of Real Estate Boards felt the mortgage
bankers had no right to "assume" they speak for urban home owners
who, the telegram said, needed the legislation.
[VoL. 134.
Opposition to the bill and other legislation of the kind was voiced by
Henry R. Robins, President of the Commonwealth Title Co. of Philadelphia. and Winston K. Ogden, a Summit. N. J., builder. Each witness
maintained that proponents of the legislation were advocating its enactment
as an aid to home ownership, but that, in their opinion, its effect would
be further to embarrass the buyers of homes eventually because of inflationary tendencies.
Mr. Robins asserted there was no need for such a banking structure
even in the present emergency, nor did he see how the system could sustain
itself during normal times.
"It simply means," he said,"that a further burden is being placed on the
Federal Treasury, and that, of course, calls for more taxes. I am thoroughly tired of seeing business interests run down to Washington and try
to dip into the Treasury every time they get into a jam."
The witness described the legislation as "neither sound in policy nor in
business principles."
Mr. Ogden said his greatest fear about the legislation was from the fact
that it would encourage speculative building again.
"As I look at it," he added, "the speculative builder is just waiting for
some move of this kind and he will block them out again. The result will
be that values will be depressed further and those people who have bought
homes may have paid off second mortgages and the value of their property
won't be as large as the remaining first mortgage."
Availability of Money.
Thomas F. Clark, representing the Thomas F. Clark Co., of New Haven.
Conn.,told the Committee that there was no pinch for money on legitimate
propositions.
"I don't know whether this fact has been generally published," said
Mr. Clark, "but it is a fact that life insurance companies have taken over
$80,000,000 in loans from banks and loaning agencies. That ought to show
that there is money available because this has been done in less than a
year."
He said there was a "lack of confidence" and that there was a "smoke
screen" being thrown about the Home Loan legislation.
"The public conception of this legislation is that it will help people to
buy homes. This Committee knows it won't do it. The restrictions on
amounts of loans make it impossible for a man to get funds under this bill
that he could not get anyway.
"This legislation does not make second-mortgage money available.
That is, the money that is required. To the extent that people think they
can be helped to get second-mortgage money, by this legislation, they are
being fooled, plainly deceived."
Senator Watson said the conception held in his State was that the legislation would help those who already have homes to refinance them. He
believed it might have that effect, but Mr. Clark declared all proper mortgages could be, and were being, renewed.
Mr. Clark reiterated assertions previously made that the banks proposed
to be organized could not be made self-supporting. He doubted that they
would pay their own way under present conditions, and was certain they
would not earn dividends in normal times.
National Credit Corporation Calls for Third Payment
of 10% on Subscriptions.
From the New York "Sun" of last night (Jan. 22) it is
learned that a third call of 10%, or $50,000,000, on subscriptions to its gold notes has gone forth from the National
Credit Corporation, banks here have been notified, such
subscriptions being payable next Monday, Jan. 25. The
"Sun" adds:
Previous calls were for similar amounts and make a total of $150,000,000
of funds which the corporation has to date employed or is about to employ
in making advances to banks on sound but non-rediscountable collateral.
Like previous subscription calk the third one is payable at the Federal
Reserve Bank in each district.
The subscribed capital of the National Credit Corporation, in the form
of gold notes subscribed by banks to the extent of 2% of their net deposits,
amounts to $500,000,000. Each loan or advance made by the Corporation
IR passed upon by regional clearing house bankers' committees in the district
in which it is made and again by the home office of the Corporation.
The previous calls were noted in these columns Jan. 9,
page 241 and Jan. 16, page 416.
The National Credit Corporation—Testimony of Gov.
Harrison of New York Federal Reserve Bank Before
Senate Committee Hearing on Bill—Statement on
Bank Failures.
A brief reference was made in our issue of Dec. 26 (page
4258) to what George L. Harrison, Governor of the Federal
Reserve Bank of New York, had to say in December before
the Senate Sub-Committee on Banking and Currency in
urging prompt action on the Walcott bill, providing for the
creation of the Reconstruction Finance Corporation. Excerpts from his testimony have since been published in the
"United States Daily"; the first of these, published in the
"Daily" of Jan. 14, follows:
Senator Walcott: Governor, what we want particularly is a brief bird'seye view of the National Credit Corporation, how far it has functioned,
and how broad its powers are, and whether, in your opinion, this larger
provision is necessary to help the emergency. You may make your own
statement on that, and then the Committee will ask you some questions
to draw out further facts.
Mr. Harrison: Perhaps I can give you my facts best by briefly reviewing
conditions as they seemed to exist at the time the National Credit Corporation was organized. At that time the country and the world were in
the midst of one of the most severe depressions of history. We had suffered one of the most drastic deflations in prices—I won't say values,
necessarily—that the world had experienced in the past, and as a result
of that deflation and depression, which I think we can admit as a matter
ofrecord, various institutions in this country,and those individuals who were
owners of wealth, whether in material goods or in the form of obligations
representing debts, felt themselves being more and more pressed. That,
in itself, inspired fear and timidity which checked people or institutions from
JAN.
23 1932.1
FINANCIAL CHRONICLE
615
Mr. Harrison: Senator, I think that It has been very helpful so far as
Proceeding in a normal fashion which would revive the usual demands for
certain banking situations are concerned, but—
the goods that were being produced.
Senator Brookhart: I got a telegram this morning telling of the failure
Banks, as well as others, felt the effects of this depression, and there
three days ago
have been a great many banks in the country which in the past two years of a National bank in Iowa, and I had a telegram two or
with
respect to another one. I do not think it has helped much out in
have failed for one reason or another. The increasing number of failures
inspired other banking institutions with greater conservatism. The result Iowa.
Mr. Harrison: I have not the records with respect to the individual
of that conservatism, which nobody can criticize, was a restraint in the
extension of credit which normally would have been helpful in a period States, but the rate of bank failures has declined very substantially, Senator.
not think that is a matter of dispute.
do
I
like this, to start a circulation of credit and money to revive purchasing
Senator Brookhart: Of course, we had a special panic. The biggest
power and stabilize prices.
bank In the State went down, and a dozen or 15 others, just about the time
There were two classes of banks which were particularly in mind at the
you did this.
time the Credit Corporation was organized: Those which might technically
Governor Meyer: That bank, Senator, will be reopened on Jan. 16.
have suffered because of a deflation in the market value of their assets,
Mr. Harrison: On a pledge by the National Credit Corporation that
though perhaps not in the intrinsic value of their assets. A number of
they will stand ready to help it if necessary. I am informed, also, that
those banks, as a result of the depression in market or quoted values,
the bank would not have been reopened had it not been for the willingness
had their surplus and capital wiped out. There were other banks which
the Credit Corporation to stand back of it. In fact, they had a parade
were quote solvent, but less liquid, and which were not in a position to of
out there celebrating the prospect of reopening this bank, in which the
provide cash on demand to meet withdrawals of alarmed depositors.
National Credit Corporation played no small part.
The Credit Corporation was designed, as I understand it, to take care
of only this latter class of banks. It could not restore values, market
The excerpts were continued (and concluded) in the
values or intrinsic values. It was not intended to contribute capital to
of Jan. 15 as follows:
'Daily"
banks which had suffered a loss of capital because of this drastic decline
Senator Walcott: Governor, I think there are no applications yet that
in prices. As I understand it, it was designed, however, to provide a pool
through which those banks which were not insolvent, but whose assets have come in in time to help that have been turned down.
Mr. Harrison: By the main office. Those that have been turned down
were less liquid because of this depression, could be provided with cash to
have been turned down by the local association, for their own reasons.
meet current withdrawals of deposits.
Senator Brookhart: You do not know how many of those there are?
The task of organization of a corporation of that sort was huge. To
Mr. Harrison: No; I do not.
have one institution with the knowledge which would have enabled it
Senator Bulkley: I cannot help thinking that that is begging the queswisely to make loans to needy banks on sound assets all over the United
States was impossible without the coincident establishment of some sort tion. The main office makes the local association its agent to determine
the local assoof branches or agencies throughout the country which would be familiar whether the loan is good or not, and if it is turned down by
ciation it is turned down by the National Credit Corporation.
with banks in each particular district.
it is not
association,
Senator Walcott: If it is turned down by the local
So. when the Corporation was organized, they determined that the only
wise way in which they could be helpful would be to make loans to banks even referred to headquarters.
local assoSenator Bulkley: I know it; but the headquarters makes the
in each individual locality after they had been approved by a group of
banks in that locality, and with those banks assuming part of the respon- ciation its agent to do that and authorizes it to turn it down.
Senator Walcott: Certainly.
sibility for the loan.
it is
I am informed that within a period of relatively few weeks the CorporaSenator Bulkley: If I am turned down and cannot get any money,
local assotion was organized and the branch associations were set up in each section small consolation to me to know that it was turned down by a
of the country, directors were appointed from each Federal Reserve district, ciation. There is no review.
had not
Senator Walcott: The only statement was that headquarters
and very shortly applications began to come in to the Corporation. A
number of those applications were turned down by the local associations, turned down any applications.
It Is
Senator Bulkley: I think that is a rather misleading statement.
not because of any lack of desire to be helpful, but because the banks,
perhaps, did not come within the category which the Corporation was true, but it carries a false inference.
this
that
realize
Mr. Harrison: Of course, after all. Senator, you must
designed to help. They were not banks which were just suffering from a
Justified the speed.
was done in a great hurry, and I think the emergency
lack of liquidity, in other words.
It was several
Senator Bulkley: It was not done in so much of a hurry.
There have been a number of cases where applications have been made
to the local association which have been turned down by the local associa- weeks before they even got started, was it not?
there would have
tion, either because they did not feel that the institution was in shape to
Mr. Harrison: What I am trying to imply is this: that
an
justify their guaranty of the obligation, or else they were in a condition been a very much longer delay had the corporation attempted to set up
agents,
individual
own
its
which appeared to thorn to be hopeless, and there was no need for them to organization by which it could have, through
take the responsibility and dissipate their resources in a hopeless cause. gone out to different sections of the country to pass upon the collateral.
There has been no case, however, where an application has been filed with
as criticizthe local association and approved by the local association, that the NaSenator Bulkley: Governor,I do not want to be misunderstood
tional Credit Corporation has not made the advance, and made it on the ing this. What I am criticizing is the attempt to create the impression that
applications
day on which the application was received.
no applications for loans are turned down. There are plenty of
We have heard stories to the effect that certain institutions have not been for loans turned down, I believe, and we will develop that a little later.
attack on
able to get accommodation from the Credit Corporation. If that is true,
Mr. Harrison: Of course, Senator, I am not here to make an
it is because their own local association, who knew their position better or a defense of the Corporation. I am just trying to report the facts as I
than anybody else, was not prepared to recommend or to guarantee the know them or as I understand them. I thought I made it clear that while
head office there were
loan to be made by the Credit Corporation.
it is true that no loans have been turned down by the
Frankly, there have not been very many loans made.
cases where they had been turned down by the local association.
Senator Townsend: Do you know the amount of loans that have been
Senator Bulkley: Certainly.
no more
Mr. Harrison: That was just a statement of fact, and I meant
made?
AldrichMr. Harrison: Yes. I do not know whether I am entitled to tell you, than the facts meant. Do you remember when they had the
but I do not see any harm in doing so. Remembering that they have not Vreeland emergency currency bill, where the Government was to provide
turned down any loan that has finally come through to the Corporation, currency to national banking associations upon collateral other than Governbut rather that they have approved every application that has come to ment bonds? It was an emergency and they had to act in a hurry. The
the Corporation, approved by the local association, they have, I think, Government took precisely the same steps that the National Credit Coradvanced around $10,000,000. The amounts, therefore, relatively are so poration is taking to organize local associations which would guarantee
small in comparison with the total amount of subscribed notes of the Cor- the loan of the individual association getting the currency.
Senator Bulkley: That is precisely the point. It is a perfectly Proper
poration that the management felt that It was unwise to make a call on
all subscribers all over the country, as long as certain institutions in New restriction, but the point is that when you put that restriction on, the whole
York were prepared to lend the funds to the National Credit Corporation works do not function. In all this emergency, which is, as you say, the
to lend to the needy banks without the general call.
most severe we ever knew, with people scared to death about'theirbanks.
Senator Bulkley: Has the call now been made?
there has been only $10,000,000 that has been approved by those local
Mr. Harrison: I think not, Senator.
boards.
Senator Townsend: Do you know the total amount of subscriptions?
Mr. Harrison: I am sorry that I have not got the facts.
Mr. Harrison: I believe it is well over $400,000.000. I think it is a
Senator Bulkley: Which is 2% of the assumed resources of the Corpolittle short of the $500,000.000, although subscriptions are still coming in. ration.
Mr. Buckner, who is the President of the Corporation, has told me that in
Mr. Harrison: I am sorry that I have not got the facts, but I think you
his judgment there is no question that they will ultimately reach the would probably be surprised to learn how relatively small an amount has
$500,000,000 as the needs of individual communities prompt them to been turned down, even by the local associations.
subscribe.
Senator Bulkley: When they turn down two or three of them, the rest
I think they are wise in not making a call, so long as there are institutions of them know they need not apply.
which are in a position and ready to make advances to the Corporation on
Mr. IIarrison: That may be true.
their own account, without necessitating a general call, which would put
pressure on the banks all over the country and tie up funds which are not
Senator Bulkley: Of course it is true. They get the idea of how stiff
needed by the Credit Corporation at the moment.
the requirement is. In any event, looking at it the other way around,
I do not think, however,that you can really measure the accomplishments only $10,000,000 has been approved. That is another way to state it, and
of the Credit Corporation by the amounts of money which have been it is true.
Mr. Harrison: There is no denying that fact, although there are appliloaned. The difficulty, as I tried to intimate a moment ago, with the
situation throughout the country at the time the Credit Corporation was cations in process now, I understand, which will raise that amount subon
fear
of
part
the
this week.
unholy
many
stantially
an
was
bankers that this unreaformed,
Senator Bulkley: It seems to me that the experience so far shows either
soning withdrawal of deposits which was going on at that time might conthat there is no need for this method of relief, or else that it just does not
tinue and might put them in a position where they would be embarrassed.
The more creation of the Corporation, which provided a pool to which function when there is a need.
not
minds
Mr. Harrison: I think there was the need, and that it did function,
the
only
of the depositors
they could go if they had to, relieved
but of many of the bankers as well. It was more than a coincidence, I The principal accomplishment, more than in dollars and cents, was in the
believe, that immediately following the creation of the Corporation, the change of psychology and added confidence in the banking system.
Senator Bulkley: I think it had a good effect in that respect. There
rate of bank failures declined very rapidly, and the withdrawals of deposits
is no doubt about that.
suffered a proportionate decline.
Mr. Harrison: That was, frankly, a good part of our trouble, because
As figures which you have available will show, the outstanding currency
in the country, if allowance is made for the usual seasonal changes, has the unreasoning fear with which depositors ran to the banks and took their
declined now well below what it was at the peak; and while there was some cash out was precipitating difficulties in every section of the country and
increase after the creation of the Corporation, the rate of increase was most making other good, sound, solvent institutions less and less willing freely
to make loans to needy customers because they were afraid of over
substantially checked immediately after it was announced.
other in
We have contacts, of course, with the banks throughout our District— themselves, lest the spread of fear would cover them as well asextending
etniaot
tu
very close and very intimate. The whole psychology of the bankers' stis
Senator Bulkley: Governor, I wish you would help me out. I am in
mind—especially the smaller country banker, who did not have a very
favor of this bill, but I want to know how to answer the question when
good city contact—was immediately changed.
asks me as to why the National Credit Corporation cannot do
somebody
now,
entirely
without
satisfactory,
is
Why
that
Bulkley:
not
Senator
the things that we are expecting this to do.
the need of this other corporation?
616
FINANCIAL CHRONICLE
[VoL. 134.
Mr. Harrison: 1 think that the situation to which I referred at the outset
was a very general one, and related not merely to banks, but to a great
many other institutions in the country—other institutions which suffered
the results of the depression and the deflation as much as the banks did.
There has been no machinery set up by which those other associations
or institutions or individuals can be provided for in some emergency such
as this, and I think it would be unwise to expect or to ask the Credit Corporation to do it.
In which the railroads have now found themselves—whoever is at fault,
or whatever the cause has been—is one of the seriously depressing influences.
Therefore. in response to the Chairman's inquiry as to whether I think
this bill ought to be framed in a fashion that would enable them, in case
of need, to help a railroad, my answer would be yes. I think it would be
the wisest provision.
Senator Brookhart: Here is one thing that happened: When the Transportation Act went into effect the farmers' rates were raised about 60%
over what they had been before, and they have been maintained through
Senator Brookhart: Suppose we pass this bill. What will you do with all these years at that higher level. That has contributed heavily toward
your Credit Corporation then?
bringing on the agricultural depression, so that Instead of the railroads
Mr. Harrison: What is that?
being in hard lines they put agriculture in hard lines by the operation of
Senator Brookhart: What will you do with your Credit Corporation if that law.
we pass this bill?
Mr. Harrison: I think, Senator, the most important thing that your comMr. Harrison: Lam not sure. I am sure I do not know what is the plan, mittee has to consider is this: We start with a premise that we are in a
Senator. I do not run the Credit Corporation. I do not know what will serious depression that is affecting all business in one degree or another.
e the full effect of this bill; but I do feel this, that we are now at a point Much of that depression is psychological and has resulted from unwarwhere, with encouragement, where, with a relaxation of fear and timidity ranted fears and unnecessary restraints in the normal life that we would
on the part of people all over the country and all over the world, we might usually live. Anything that can be done at the present
time to provide
turn this tide favorably. I do not think that you want to consider this a means whereby the man who is under restraint in
his normal life can
Corporation as a deliberate machine of inflation. I think it is an insti- assure himself of protection in case of dire need, will be helpful. The more
tution which is designed primarily to allay fear and to provide a backing we can do that, the more helpful it would be in
every part of our economy,
whereby needy institutions can get accommodation rather than to force because, to the extent that it relaxes fear and timidity and
inhibitions, to
their assets on an already depressed market at wholly sacrifice values.
that extent will it create purchasing power again, which is what we want.
Senator Brookhart: Is not the inflation of these commodity prices exThe whole trouble with the country to-day is not that intrinsic values
actly what we need?
have depreciated to a point where we are suffering, but rather that market
Mr. Harrison: If you mean by inflation a restoration of market values values, which represent the distressed selling of the needy to the
bargain
to intrinsic velum, I say yes.
hunters, have depreciated to a point where we get a wholly unrelated estiSenator Brookhart: That is what we need—inflation over present values. mate of what is the real position of the country.
That is what any inflation over present values would mean.
If this bill will be helpful toward developing a situation which will enable
Mr. Harrison: I agree with you, in almost every case.
market values more accurately to reflect intrinsic values, then I think you
Senator Walcott: A squeezing out of the deflation. They are over- have done the most that you can do, and that much I think it 18 veil'
deflated, are they not?
necessary to do.
Mr. Harrison: They are overdeflated, seriously.
Senator Brookhart: Then, if this organization is not attempting to restore
Senator Brookhart: The intrinsic value of the wealth production of the
values, it is not of any permanent value in the situation, is it?
country is about, in a series of years. 4% a year, and has been practically
Mr. Harrison: I think it is. I think, so far as it relieves the minds of always. As long as we turn the railroads loose to go out and fight for 5X%.
people who are now scared to the point where they will not spend a cent, when the American people are only producing 4%, and other corporations
it tends to restore confidence that will, in itself, revive the purchasing are organized to come in and get 10, 20 or 100%, under the protection of
power, which is the thing you need to restore market values to intrinsic tariff laws and things like that, and then create patent laws that give
values.
absolute monopolies in matters of price—so long as we maintain that
Senator Walcott: Governor. had you come to a stopping point?
economic warfare, a few will be victorious and get the profits, and then
Mr. Harrison: Yee; I had, Senator.
whenever they get frightened and discharge their men to protect their
Senator Walcott: Can you amplify this point a little?
profits, we have a depression. Is not that the situation?
Is it not a fact that you need now a much broader base for your lending
Mr. Harrison: Yes; but I do not think that any of us would be wise enough
than you have in this Credit Corporation? I realize that you are not fa- to provide machinery or a management of the country's business which will
miliar with this new bill, but you know the general purposes of it.
insure to all of us the same rate of profit. Indeed, the efforts in the past
Mr. Harrison: Yes.
to do that in normal times or in times of prosperity are one of the causes
of our difficulty now.
Senator Walcott: To lend money to the various institutions?
Mr. Harrison: Yes. I think you need a broader base than would be
appropriate for banks, to make loans on their own responsibility at the U. S. Senate Confirms Nomination of Theodore Roosepresent time, until the situation is more clarified, and I think you need a
velt as Governor General of Philippines Succeeding
broader base in another sense, that you have to enlarge the character of
Dwight F. Davis Resigned.
eligible borrowers. I do not think that the Credit Corporation, which can
lend only to banks, and only to that one category of banks that I described,
The
U. S. Senate on Jan. 18 confirmed the nomination of
has a broad enough power to do what Is necessary at the present time to
restore confidence and gradually to restore a condition which will permit Theodore Roosevelt as Governor General of the Philippine
the circulation of credit and the expenditure of money in the purchase of Islands, succeeding Dwight F. Davis, resigned. The apgoods and the restoration of market values to Intrinsic values.
pointment of Gov. Roosevelt was noted in our issue of
Senator Walcott: You are familiar with the railroad situation. You
know that there are perhaps 69,000,000,000 of railroad bonds held by vari- Jan 16, page 447. He has just completed his duties as
ous financial institutions, savings banks, insurance companies, and so forth. Governor of Porto Rico.
The railroads are included in this bill as a part of the list of those that are
to be benefited by the provisions of the bill. Is it wise, in your opinion,
to leave the railroads in?
Aides of Secretary of State Stimson Deny Linking Barco
Mr. Harrison: I think it is very wise to do so. I think that the railroad
Oil Concession to Colombian Loan—Hearing Before
situation has been one of the most depressing influences in the general
Senate Finance Committee.
situation. I think that the newspaper reports this morning, which lead
one to hope that there will be some speedy agreement on the question of
Parallel efforts by the State Department to obtain reinwages, will be one of the most constructive things so far as the railroads
of the Barco oil concession in Colombia for Amerstatement
are concerned, and through them the country as a whole. Whether rightly
or wrongly, the situation of the railroads has been a depressing influence ican interests and on behalf of Colombia to obtain fulfillment
In our whole economy. Railroad bonds which in the past have been prime of a contract by the National City Co. to make the final
investments for investors throughout the world, form about one-fifth of
payment of $4,000,000 on a $20,000,000 credit, both of
the total bonds outstanding. Due to the depressed business conditions
and due to traffic falling off so rapidly, you suddenly reached a situation which were successfully completed in June 1931, figured tn
where the railroads, in many cases, were not earning one and a half times testimony at the Senate Finance Committee's hearings on
their fixed charges, which they must do in order to be on the legal list.
Jan. 14 on
Senator Brookhart: That legal list was the New York legal list. It was
not legal anywhere else except New York.
Mr. Harrison: Oh no. Senator. You will find that a great many
States—I do not know how many—
Senator Brookhart: I investigated that in the rate case, and I found
that New York was about the only place that required that 1.50.
Mr. Harrison: I think that is true, but I think that you will also find
that it is true that a great many States, in defining legal investments for
insurance companies, savings banks and other Institutions, adopt the laws
of New York or Massachusetts.
Senator Brookhart: I have heard that same calamity howl from the railroads for 20 yaws. Every time a depression comes along and business
falls off, they come in with the story that their credit is being injured and
that they must have higher rates. They have failed nearly always, and
failed for the most part in this present case. If business is restored and
their tonnage is restored, they get their earnings right back, do they not?
Mr. Harrison: They do very much more quickly than any other business,
because they do not have to readjust their selling prices.
Senator Brookhart: In their showing in the rate case they showed that
they were still earning 2.24% net on the values fixed by the Inter-State
Commerce ConunIssion. That is better than most business is doing now,
is it not?
Mr. Harrison: Frankly, I have not had the time, and am not familiar
with the specific figures as to the railroads.
Senator Brookhart: That value that was fixed there was $7,000,000.000
more than the market value of their stocks and bonds at the time it was
fixed, and pretty nearly that much more than their present market value.
So this howl about the railroads is mostly another plan to get higher rates,
rather than fit them into the general average of things ovee a series of
years, Is it not?
Mr. Harrison: I have no argument to make, pro or con, on the railroad
situatio or any other one situation. All I can say is that the situation
the flotation of foreign securities in this country.
In making the foregoing statement, a dispatch from Washington Jan. 14 from which we also quote said:
Echoes of the Senate investigation were heard on the other side of the
Capital where the House Judiciary Committee is hearing impeachment
charges against Secretary Mellon, Representative Patman, Democrat of
Texas, author of the charges, quoted a letter from a South American whom
be did not name, which charged that President Olaya has said publicly
that Secretary Mellon would assist in obtaining the Colombian credit if
the petroleum difficulties were settled.
Francis White, Assistant Secretary of State. and H. Freeman Matthews
of the Latin-American Division of the State Department, were questioned
concerning Colombian negotiations for five hours by Senator Johnson of
California, but both maintained throughout the hearing that there was
no connection between the efforts to adjust the loan difficulties on the
one hand and the oil matter on the other.
"Mellon Interests" Named.
Both testified, in almost identical language that the State Department
intervened on behalf of the American holders of the Barco concession,
identified as the Gulf Oil Company, owned by "the Mellon interests." and
the Carib Development Corporation, controlled by J. P. Morgan & Co.,
only as an agency on behalf of American citizens who asked for protection
of their rights.
They likewise testified that the National City Company's credit to
Colombia received the State Department's attention, and that of Secretary
Stimson personally, only for the purpose of avoiding misunderstanding
between an American corporation and a friendly republic.
Mr. White reiterated that the Department of State "did not come into
the oil matter," except that It transmitted the representations of the oil
interests to the Government of Colombia and transmitted that Government's replies.
"There was absolutely no connection between the oil matter and the
bank credit," he said.
JAN. 23 1932.1
FINANCIAL CHRONICLE
Johnson Seeks Correspondence.
Meanwhile, Senator Johnson and Mr. White found themselves opposed
on the question of whether the State Department should submit to the
committee numerous telegrams that passed between the department and
the American Legation at Bogota, presided over by Minister Jefferson
Caffery. Senator Johnson demanded this correspondence. Mr. White refused to produce it unless it be held in confidence by the committee.
"I will not receive that matter in confidence." stated Senator Johnson.
"Some of these telgrarns you have read to bankers in New York, but
you refuse to permit us to have them, and to discuss them and to make
them available to the press."
Mr. Matthews testified that Secretary Stimson had spoken personally
to W. W. Lancaster, attorney for the National City Bank, concerning the
Colombian credit in New York, Minister Cafferey had wired the department on May 16 1931, that President Enrique Olaya of Colombia was
greatly disturbed because the National City Company apparently was
withholding final payment of the credit on technicalities. This word
was telephoned to Secretary Stimson, who then was in New York.
Secretary Stimson asked Mr. Matthews to bring the telegram to New
York and on May 18, a Monday, talked with Mr. Lancaster in his former
law office. This conversation was continued at intervals by telephone,
Mr. Matthews and Mr. White testified, until the payment finally was
made.
Oil Near Venezuela Field,
Mr. White said he had telephoned to Mr. Lancaster, finally, on June
20, telling him the substance of a telegram from the legation at Bogota
in which Minister Caffery said President Olaya could not understand
why the money was being held back as his Government had complied
with every requirement, as well as ratifying the Barco concession and
passing other desired oil legislation.
The Barco concession was identified as a tract of land of about 500.000
acres, mostly virgin jungle, but adjacent to proved Venezuelan oil territory
and having an estimated potential value ranging from $300,000,000 to
$2,000,000.000.
Mr. Matthews admitted, under a running fire of questions, that the
State Department had gone over its flies when the difficulties between
Colombia and the National City Company came to its attention, for
the purpose of "being informed."
The testimony further developed that the National City had withheld
payment of another 54.000,000 of the 520,000.000 credit, delivering it on
March 17 1931, after the Colombian Government had been instructed to
straighten out difficulties over $1,500,000 allegedly due to a British mining
syndicate.
King Asks About Cuban Loans.
Another new angle was injected into the hearing when Senator King,
Democrat, of Utah, asked Mr. Matthews if he had heard of a report that
President Machado of Cuba had received $4,000,000 personally in connection with a $20,000,000 loan to Cuba by the Chase National Bank,
covered by part of $60,000,000 worth of Cuban bonds now outstanding in
the United States.
"I never heard of such a report," replied Mr. Matthews.
Senator King indicated that he would press this point later. He had
Mr. Matthews verify translations of Spanish documents in his possession,
but withheld comment on them and did not place them in the record.
Considerable correspondence also found its way into the record bearing
upon previous testimony. It included a request from Miguel Cruchaga,
Ambassador of Chile, that the fullest invetigation be made of charges of
graft having figured in Latin-American loans in order that his
country
and others might be freed of suspicion. His letter referred to
testimony
that Juan Leguia, son of President Legula of Peru, received
$415,000 in
connection with loans to Chile.
Testimont given by Oliver C. Townsend,former Commercial Attache at
Lima, Peru, caused the receipt of several communications, including
a
letter from Secretary of Commerce Lamont informing the committee
that Townsend "was dropped on account of completely unsatisfactory
service," and denying that Mr. Townsend had warned the department
against approving Peruvian loans.
Abbott Maginnis, former Minister to Bolivia, who was painted as a
promotor of Peruvian bond issues, also wrote controverting Mr. Townsend's testimony.
Chairman Smoot announced that Mr. Maginnis would be called to
testify. Senator Johnson agreeing, said he wished to question him particularly about a reported payment of $40.000 to Mr. Maginnis by J. and
W. Seligman & Co. of New York, for acting as one of the promotors of
$100,000,000 worth of Peruvian loans.
617
on such legislation, to South America with him. A new agreement was
signed March 3 1931. It was passed by the Senate of Colombia in May,
approved by the House of Colombia on June 18, and signed by President
Olaya on June 20 1931.
Mr. White testified that the American Legation at Bogota took no part
In the fight of American oil companies for "satisfactory laws, but that
It did try to have the old oil laws held in abeyance.
Telephoned to Lancaster.
Mr. White recalled that President Olaya, as President-elect, visited the
United States in 1930 to arrange the 520,000.000 credit with a syndicate
headed by the National City Company, contingent on balancing of the
Colombian budget. At that time Mr. Matthews and Minister Caffrey,
then in the United States on leave, were assigned as aides to President
Olaya.
"On May 13 119311 we received a telegram from Bogota in which the
Minister stated that President Olaya was very much concerned because he
thought he had complied with all conditions, but that the payment of
the final $4,000,000 was being held up," Mr. White testified.
"I telephoned to Mr. Lancaster solely because a dispute had arisen
between an American organization and a foreign government regarding
the carrying out of an agreement made many months before. Mr. Lancaster called me back later and said that Colombia's budget was badly out
of balance, something like 54.000.000."
That was on May 16, while Secretary Stimson was at his Long Island
home for the week-end, Mr. White said. He telephoned Secretary Stimson, acquainting him with the case and reading another telegram from
Bogota stating that the Colombian budget had been balanced.
Stimson Calls Matthews.
"The Secretary of State asked that Mr. Matthews bring the telegrams In
to him in New York," Mr. White said,"and there Mr. Lancaster called on
the Secretary. Why was the Secretary interested in this matter.0 Not
because it was a loan proposal, but because there was a disagreement.
"Mr. Lancaster asked if Mr. Matthews would go to the National City
Bank. He did. He took the telegrams and also discussed budgetary
figures. He thought he was acting in behalf of composing the dispute.
"A few days thereafter Mr. Lancaster called the Secretary of State on
the telephone and read him the instructions the National City Bank was
sending to its branch in Bogota, instructing its representatives there to
explain to President Olaya that in view of what he had said they were
willing to waive their objections. But the money was not paid and more
negotiations took place."
Exchanges continued for another month, Mr. White went on. a new dispute arising during that time when the syndicate was reported by Dr.
Clays to have asked a higher interest rate on the final 64,000,000 than on
Previous payments in connection with the credit. Mr. White reported
that President Olaya felt "this was rather niggardly treatment."
The bankers explained that this was necessary to reimburse them for
$35,000 spent on cables to Colombia and $9,000 paid to representatives
there. Eventually, on June 29, a satisfactory conclusion was reached and
Colombia received the $4,000,000 on June 30.
Refuses to Produce Letters,
Senator Johnson had asked Mr. Matthews before the luncheon recess to
Produce the Colombian correspondence, which was refused. At the end of
Mr. White's testimony he asked specifically for the telegram of June 20.
"Do you refuse to produce that telegram?" he asked Mr. White.
"I'll have to take that up with the Secretary," Mr. White replied.
"Then you will read a telegram over the telephone to bankers in New
York, but will deny it to the Senate?"
"I do not deny it to Senators. I deny it to the press."
"You mean that you will not have it subjected to publicity."
"But those were the views of Colombia. a foreign nation," protested
Mr. White.
"You have purported to recite the contents of a telegram and then you
refuse to let the document be placed before the country. What is the difference?" demanded Senator Johnson.
"I have not recited the text."
”In that telegram, though," pursued Senator Johnson,"the President of
Colombia stated that he had settled all the differences with Americans,
including the Barco concessions, and had enacted the oil laws?"
"Yes, he did," said Mr. White,"so far as Barco was concerned, but the
petroleum laws, I think. were mentioned in a subsequent telegram."
"All right. now,some one must have been interested in the Barco matter—
who was it?" Senator Johnson asked.
"The
American Legation." replied Mr. White. "The American Minister
Erings Out Our Holdings,
As Mr. Matthews testified to-day Mr. White sat at his side, conferring was interested in pursuit of his duty of advising us regarding the treatment
with him when necessary and occasionally volunteering an answer to a of American interests."
Previously, during questioning of Mr. Matthews, Senator Johnson had
question by Senator Johnson. Mr. White this afternoon repeated a chronology of the State Department's work in question, and to-morrow will refused flatly to ask the Secretary of State for this correspondence.
"I should not regard it as confidential in the slightest degree," the Senator
undergo cross-examination.
said. "My position is that these are public records, that we are entitled
Mr. Matthews was Secretary of the Legation at Bogota from
January to be furnished with communications of this sort, particularly in an investi1927, until January 1930. His principal responsibilities, now, be testified,
gation of this character, and that our people are entitled to know exactly
concern Colombia and Cuba.
passing between the representaSenator Johnson developed that Americans hold about $100.000,000 in the words contained in the communications
State Department."
securities of Colombia, or its political subdivisions, which soon are expected tive of the United States in Bogota and the
first experience in going direct
was
his
that
this
testified
Matthews
Mr.
to be defaulted because of an embargo on the export of exchange.
loan.
foreign
with
a
connection
to
a
house
in
banking
"You were endeavoring to straighten out differences that arose over a
private loan made to the Colombian Government by the National City
Admits Course Was Unusual.
Bank, but you made no efforts to straighten out a difficulty by Colombia
"So far as you know," Senator Johnson asked, "was there ever any
and its subdivisions where $100,000,000 had been put into the pockets
Other occasion when the Secretary of State had gone to a private banker
of Colombia by American investors_" Senator Johnson asked.
"That is correct, Senator," Mr. Matthews replied. "There was nothing In reference to a private loan to any government or governmental subdivision in a foreign country?"
for us to do."
"I can think of none," replied Mr. Matthews.
Despite the differences of opinion that flared up between Senator Johnson
"Did the State Department make any demand that it be carried out?"
and the witnesses, both were commended by him for their frankness on
"No, Senator, we were merely putting forth President Olaya's feeling
numerous occasions.
that he had lived up to the terms of his agreement."
Tells History of Concession.
"Did you express an opinion as to whether the money should be paid
According to testimony by Mr. White, the Colombian Government in or not?"
1926 abrogated the Barco agreement, then 21 years old and assigned to
"We stated that, on the face of the information before Us, we thought
E. L. Doherty & Co. and the Carib Development Corporation, on the President Olaya had lived up to his agreement." replied Mr. Matthews.
ground that insufficient work had been done. Some time afterward the
The witness added that after conversations with Mr. Lancaster and
interest was sold to the Gulf company. The holders of the concession officials of the National City Co. "we still held to the opinion that
they
protested, and finally in 1928 the Carib corporation, which now has a were being unduly technical."
minor interest in the Gulf company, protested to the State Department.
At one point in his testimony Mr. Matthews pointed out that the clearing
"The Department of State inquired when an answer might be expected," up of the Barco concession probably was a large matter in the opinion
of
Mr. White said. "The negotiations finally broke down late in 1928, when Colombia in connection with the credit, "as the Colombian public made
the Colombian Government advanced new reasons for cancellation of the no general distinction as to American interests."
concession. A new memorial was flied by the holders, but negotiations
languished."
Lamont Challenges Townsend.
President Olaya took office in July 1930. and, Mr. White said, made it
A large amount of correspondence received by the
addressed
one of his responsibilities to go over this matter as well as put through to Chairman Smoot, hinged on testimony by Oliver Committee,
0. Townsend, former
oil laws desired by American interests, taking George Rublee, an expert Commercial Attache in Peru, who In testimony
before the Committee
618
FINANCIAL CHRONICLE
said be had been instructed to turn in more optimistic reports on conditions. Secretary Lamont's letter to Senator Smoot read:
"I would like to call to your attention several misstatements that appeared in the reported testimony of former Commercial Attache Oliver
C. Townsend before the Committee on Finance on Jan. 11. Press dispatches indicate that he made three specific points.
"According to these accounts, he testified that he voluntarily resigned
from the Department of Commerce. This is untrue. He was dropped
on account of completely unsatisfactory service.
"He is reported to have stated that a letter from Assistant Director
Thomas R. Taylor cautioned him to make his reports more optimistic,
creating the impression that he was directed to distort the facts. The
Department has no record of a letter of this kind.
"The letter he seems to have in mind was concerned with replies to
trade inquiries from American exporters and had no bearing whatsoever
on financial or other economic reporting. His trade letter had been found
to be curt to the point of discourtesy, and under the circumstances, unnecessarily discouraging. If he possesses any communication other than
the letter from Mr. Taylor referred to, it is suggested that he be asked
to produce it.
"Mr. Townsend testified, according to the press, that he had advised
the Department that American loans to Peru were unwise. A thorough
search of our files fails to reveal any warnings of this nature. In fact,
the tenor of his reporting was to the effect that the loans would help
American trade. A file of his weekly and monthly economic cabled reports can be provided if desired.
Produces Taylor Letter.
The letter from Mr. Taylor to Mr. Townsend also came to light for
the first time to-day, when Senator Johnson, on receipt of a copy from
Mr. Townsend, placed it in the record.
"I should like to emphasize that the spirit of the bureau (the Bureau
of Foreign and Domestic Commerce) followed the spirit of American
business, which is to make sales in spite of difficulties, or to find ways
of doing seemingly impossible things," Mr. Taylor wrote.
Appeal Made on Haitian Loan.
An investigation of Haitian loans floated and held in this country,
with particular reference to the operations of the National City Bank
of New York, is asked in a letter sent Reed Smoot, Chairman of the Senate
Finance Committee, by the National Association for the Advancement of
Colored People, made public yesterday by that organization.
"Unless the charges made against the United States' financial operations
In the black republic of Haiti are thoroughly investigated, imputations
of the gravest international malfeasance against the United States Government will continue to be made," the letter says.
A statement made by President Hoover in his message to Congress
on Dec. 10 is characterized as "misinformation." The President's assertion
that the 1922 loan was "desired by Haiti" is termed a "misstatement
of fact."
Secretary of State Stimson Before Senate Committee
Incident to Loan to Colombia and Barco Oil Concession—Declines to Submit Data.
Secretary of State Stimson was called before the Senate
Finance Committee on Jan. 16 to explain his Department's
refusal to supply correspondence with reference to the Barco
concession and loans to Colombia. Associated Press accounts from Washington on that date (Jan. 16) said:
Mr. Stimson appeared before the Committee's executive session at the
request of Chairman Smoot. Senator Johnson, Republican, of California,
who has sponsored the investigation of foreign bond issues, did not sit
with the Committee.
The State Department has refused to furnish the Committee in open
session correspondence with the American Legation in Colombia which
dealt with the restoration of the Barco oil concession to American interests
last year.
It also has refused to furnish correspondence with reference to a $4,000,000
loan extended to Colombia by the National City Company ten days after
the concession was granted. The loan had been contracted for the year
before.
Senator Johnson, who originally asked for the documents, but who is
not a member of the Committee, sat outside in an ante-room while Mr.
Samson testified. Mr. Johnson said he was asked to leave the committee
room during the executive session.
[Vol.. 134.
A publication of these reports would make Impossible the adequate
and effective conduct ofour foreign relatio
and it has neve been tilt 3 policy
of this Government so far as I know to consent to thel• p blication.
I shall consider further whether there are any documents or parts of
documents in connection with Mr, White's testimony the publication of
which would be in accord with the Department's policy.
Senator Johnson's Reply.
The statement was read at a conference with newspaper correspondents, following which Secretary Stimson said that he had not read the
correspondence in question.
lie made clear that if he does permit any correspondence to go before
the committee it will be for publication, as Senators already have permission to see State Department records in confidence.
In a statement, issued after he had read Secretary Stimson's formal
declaration, Senator Johnson said:
I do not propose that any controversy over the production of documents, however important that subject may be, shall divert us from the
very much more important subject of the imposition upon the American
public by international bankers of foreign securities, and the consequent
tremendous financial losses of our people. The actions of international
bankers in impoverishing the American people are under investigation,
and no red herring across the trail, no matter whence it emanates, shall
divert us.
The American public, however, should know just what is in dispute
at present with the State Department, and here are the facts:
Yesterday, at his own request, and voluntarily, Under-Secretary of
State Wh to, without the slightest interruptions, was permitted at great
length to present his views. In the course of his statement, of his owe
volition, he recited the contents of certain dispatches received by the
State Department from the representative of the United States Government at Bogota, Colombia.
Some of these dispatches thus voluntarily recited by him contained
references to the Barco concession. These dispatches, in some instances,
were read, he stated, in substance, to the representatives of international
bankers in New York City; and in one instance, with the exception of a
brief part of the dispatch, which did not relate to the subject matter, a
telegram from our representative at Bogota was read verbatim to the
representatives of international bankers in New York.
It is true the Under-Secretary of State said he read these in confidence,
but he stated at the same time that they were to be transmitted to the
bankers themselves, and he voluntarily recited ther contents publicly to
the committee. After he had voluntarily recited these dispatches, he
was asked to produce them. He declined to do so. because he would not
submit their contents for publication, and yet he was reciting their contents in the presence of the combined representatives of the press of the
nation, who were actually then reporting them.
He said that he would submit the dispatches in confidence to the members of the committee. For a department of our government to read to
international bankers telegrams of grave consequence to our people, and
to deny them to the people themselves, is, in my opinion, an insult to
those I represent.
After this first refusal, I asked Mr. White to bring copies of transcripts
to the telegrams which he purported to recite, and which he said he had
read to international bankers, deleting from them everything which might
not be pertinent to our inquiry, or which might in any fashion affect our
international relations. He specifically declined to do even this. We
have presented, therefore, the strange and anomalous situation:
(1) Dispatches in which our people are vitally interested are read by
a department of our government to internattonal bankers and denied to
the rest of our people;
(2) The offer is made that these dispatches will be shown In confidence
to members of the committee, which, of course, precludes them from
discussion publicly;
(3) The representative of the Secretary of State recited verbally what
he says these dispatches contained, and yet refuses to permit the committee to see the dispatches themselves;
(4) The Secretary of State's office asserts there may be in these dispatches something which would be foreign to the investigation, and the
publication of which might be irritating in our international relations;
and yet, when asked to delete any such portions and being to the committee only a transcript or copy of that which was communicated to the
international bankers in New York, he flatly refuses. This is the record
in the case.
Secretary of State Stimson, before the committee this morning, said
he would further consider the matter.
Secretary Stimson, refused on Jan. 20 to accede to a
request made on the same date by the Finance Committee
of the Senate that a telegram of June 19 1931, from the
In a statement issued on Jan. 16, following his appearance American Minister in Bogota, containing a reference to the
at the executive session Secretary Stimson said:
Bare() oil concession in Colombia be made public. The
I shall consider further whether there are any documents or parts of "United States Daily" on Jan. 21
supplied the following
documents in connection with Mr. White's testimony the publication of
additional information:
which would be in accord with the Department's policy.
Mr.Stimson in a letter to the Chairman of the Committee,Senator Smoot
From the "Times" we take as follows Mr.Stimson's official (Rep.) of Utah, said that "it would not be in the interest of the United
States in its foreign relations to publish the telegram."
statement and Senator Johnson's reply:
The telegram had been requested from the Secretary by the Finance
In response to a request from the Senate Finance Committee I appeared
before them this morning. I am prepared to make available to them Committee following an executive session of the Committee Jan. 20.
in executive session every document which they may desire in the way An extract from the telegram in question together with extracts from other
of correspondence, cables, &c., between the Department of State and its telegrams were considered by the Committee at its meeting.
Asks Telegram on Concession.
embassies and legations in Latin-America relating to the subject matter
of the investigation. The submission of these papers to this committee
The Committee will meet again Jan. 25, the Chairman, Senator Smoot
Iii executive session is in conformity with the position which the State (Rep.) of Utah, announced at the close of the meeting on
Jan. 20, for the
Department has taken throughout the course of this investigation.
purpose of considering the answer of Secretary Stimson to the request.
From the outset it has repeatedly affirmed that it would willingly make
Senator
Couzens
(Rep.) of Michigan, and seconded
The motion made by
these papers available in this way. There will be no deviation from the by Senator La Follette (Rep.) of Wisconsin, and passed
unanimously by
established practice of making public to the fullest extent the policies the Committee Jan. 20 was as follows:
pursued by the Department and every agreement of whatever character
"I move in view of the fact that the communication received from the
In the conduct of the foreign relations of this Government.
Secretary of State makes no reference to the Barco concession, in the
It has been and will continue to be, however, the policy of the State telegram of June 19, that he be requested to furnish to this Committee the
Department under my administration to keep as confidential the reports telegram which confirms Assistant-Secretary White's testimony given
which it receives from its representatives in foreign countries regarding before the Committee in respect to the Barco concession."
the current exchange of views which they have with officials of those counSenator Johnson (Rep.) of California, who has been conducting the
tries and the frank opinions which these representatives are encouraged to hearings before the Finance Committee, issued a statement Jan. 20 referforward to the Department on all matters of interest to this Government. ring to the situation as "absurd and ridiculous," and the position of the
It must be obvious to every thoughtful member of the American public Department of State as "illogical."
that in the normal discharge of their duties our Ambassadors and Ministers
Senator Johnson's statement follows in full text:
carry on many frank and friendly discussions with the officials of the
Says Position Is "Illogical."
countries to which they are accredited. It must also be obvious that it
is their duty and practice to forward to the Department in their dispatches
"The situation is absurd and ridiculous, Mr. White, the Under-Secretary
and cables their personal and confidential opinions and comments regarding of State, voluntarily recites publicly in the presence of the press of the
all matters relating to the intercourse between the two governments.
Nation the portion of the contents of a telegram which refers to the Barco
JAN. 23 1932.]
FINANCIAL CHRONICLE
syndicate, and admits he read this to the reprsentatives of international
bankers.
"The Secretary of State declines to give to the Senate, except in confidence, which would preclude its discussion or mention, that portion of th
telegram containing the matter divulged by Mr. White. The Secretary
of State declines to do this, because it might cause a possible upheaval in
Latin America. This utterly illogical position might cause some of suspicious minds to think that possibly an explosion in Latin America is confounded with an explosion in our own country.
"The Secretary says, in effect, it is not against public interest to publish
the part of the telegram relating to the loan, but against the public interest
to publish the part concerning the Barco oil concession, and yet the telegram
admittedly refers to both, and the Under-Secretary of State voluntarily
•and publicly, verbally recites the parts of the telegram referring to both.
What is there about the Barco concession that its mere mention sends us
Into shuddering silence? Why should international bankers have State
Department telegrams, and the American people denied them?
"But that's that. We are still investigating foreign loans and the activities of international bankers in foisting them upon our public. We do not
intend to be turned aside by any collateral issue. We expect to continue
in the hope that some remedy may be found, and that never again may
those who deal for their own enrichment in foreign securities impoverish
the American people."
The communication from the Secretary of State, and extracts from telegrams inclosed therein, in response to the Committee's previous request,
follow in full text:
My dear Senator Smoot: I have personally examined the telegraphic
communications with the American Minister at Bogota which Senator
Johnson asked to be produced before the Senate Finance Committee. I
transmit herewith, for inclusion in the record, transcripts of parts of certain
of these telegrams, the substance of which Mr. White has already stated.
Where the extracts are in confidential code they have been paraphrased.
I am clear that it would not be to the interest of the United States in its
foreign relations to submit further documents for publication. I repeat
that I am willing for any member of the Senate Committee to read in confidence any of the correspondence pertaining to matters referred to in the
Senate resolution. Sincerely yours,
(Signed) HENRY STIMSON.
Unable to Send Four Million.
Document 1. Extract from telegram of March 12 1931, 5 p. m. from
American Legation at Bogota to Department of State'
"President Olaya informed me this morning that although budget had
been reduced and balanced as American bankers had demanded, they
told him this morning that they were unable to send $4,000,000 as they
had clearly promised."
Document 2. Paraphrase of extract from telegram of May 12 1931,
7 p. m., from American Legation at Bogota to Department of State:
"The bankers, President Olaya states, say that having discovered that
revenues for first quarter of the present fiscal year are below their estimates, they cannot pay over the $4,000,000; they again want him to reduce
the budget. President Olaya says, 'This is an impossible situation.'
The President further says, 'No government can function if its budget
is subject to revision month by month. The bankers themselves accepted
Bemmerer's figures for the budget and in any event in my opinion the
Increased revenues later in the year will make up for whatever they are
short during this quarter'."
Discusses Balanced Budget.
Document 3. Paraphrase of extract from telegram of May 16 1931,
10 a, m., from American Legation at Bogota to Department of State:
"One of the first conditions laid down in the agreement of June 30,
President Olaya admits, was a balanced budget, and the bankers and he
agreed on balanced budget of 51,000,000 pesos for the present year which
was afterwards reduced to 49,000.000. The bankers now insist that as
revenues for the first quarter are below their estimates he reduce the budget
again. President Olaya maintains that he cannot monthly reduce his
budget according to the mouth by month receipt of revenues."
Document 4. Extract from telegram of June 19 1931, 10 p. m., from
American Legation at Bogota to Department of State:
"At last minute and after everything else was agreed on for advance of
last $4,000.000 bankers to-day have made a new condition. They desire
to jump interest rate on whole loan on June 30 from 7 to 8%•
"An increase in this interest rate would DOW have absolutely disastrous
consequences for whole current of friendly feeling now existing here for
the United States. The bankers apparently still have absolutely no
understanding of situation here or their own best interests."
Mr. Stimson's Letter.
The letter of Jan. 20, in which the Secretary of State refused to make
the telegram public follows in full text:
My Dear Senator Smoot.—I have received a request from the Senate
Finance Committee for a telegram of Jufa 19 1931. Mr. White's testimony stated correctly the substance of this telegram as to the Barco
concession. The telegram is available for examination in executive session
to your Committee if they desire to check the accuracy of Mr. White's
testimony. It would not be in the interest of the United States in its
foreign relations to publish the telegram itself. Sincerely yours,
(Signed) HENRY L. STIMSON.
Rail Wage Parley—Conferences Between Unions and
Presidents' Committee of Nine Still Continues.
As noted in last weeks' "Chronicle" page 439 the meeting
between the rail union chiefs and the Presidents' Committee
of Nine got under way on Friday afternoon (Jan. 15) in
Chicago after several delays. At Friday's meeting both
sides presented their side of the case. David B. Robertson,
President of the Railway Labor Executives' Association outlined the workers' position and presented their demands.
He was followed by Daniel Willard, President of the Baltimore & Ohio RR., Chairman of the Presidents' Committee
of Nine, who served a formal demand on the employees for
a voluntary wage cut of 10% for one year.
At Saturday's meeting Mr. Willard held the floor during
most of the session, outlining the railroads' desperate plight
and gloomy outlook as justifying the proposed wage cut.
Mr. Willard offered statistics, and other data, showing what
railroads have gone through in the way of receiverships,
bond defaults and stock slumps and argued that freight rate
619
increases will not insure stability. He estimated that a
10% wage decrease would save the railroads an estimated
$210,000,000 to $215,000,000 during the year—the term
for which it is proposed. Added to the additional freight
revenue, the railroads would gain a total of nearly $325,000,000 to combat depression, he said. Mr. Robertson
commented that Mr. Willard did not announce what the
railroads would do with the estimated savings. He pointed
out that the workers demand any such savings should not
be used as "a dole for idle capital," but to provide additional jobs.
A question arose on Saturday as to the status of those
roads which have given the statutory 30 day notice for a
15% reduction. These notices, in some cases, expired
Jan. 20 and, with the negotiations having been delayed,
theoretically there was nothing to prevent the roads from
putting the reductions into effect on the 20th. It was
explained that the notices would be held in abeyance pending
the outcome of the present conference.
At Sunday's sessions the Presidents' Committee expressed the desire to have further information on the following proposals of the unions:
That the interests of the employees shall be protected in cases of merger
and consolidation and that they shall not be ruthlessly deprived of their
Investments in their homes when economies due to consolidations compel
them to move to other towns: also that provision be made for employment
in cases of mergers and consolidations.
That the roads join with the employees in advocating a Federal law to
provide retirement insurance and electric workmen's compensation.
That there be established an emergency employment bureau to prepare
the way for eventual establishment of a national placement bureau and to
provide means for placing unemployed rail workers as additional opportunities of employment may develop.
On the question of the placement bureau the employees
explained that they wished to have joint machinery established, controlled either by one side or the other, whereby
the displaced men would be assured fair treatment in filling
such openings as might occur. The presidents appeared
interested in ascertaining just how such a bureau might work
and this question and the one calling for advocacy of a
Federal retirement insurance law were placed by them in
the hands of a subcommittee consisting of these representattives of the three regions: E. J. McClees, eastern; T. Neal,
southwestern, and J. W. Higgins, western.
There was some discussion also on the unions' suggestion
concerning the protection of employees in cases of mergers
and the labor spokesmen were asked to submit further data
on how this would work out if their suggestion were accepted.
At Monday's session an agreement was reached on the
unions' proposal for establishment of regional employment
bureaus to replace the present method of returning laid off
ment to jobs. At the same session the unions replied to the
Presidents' request for further eludication of what the
employees meant by stabilization of employment for one
year, and the assurance that the stand-by forces would be
assured a minimum of part-time employment. The unions
reply follows:
"Would the railroads agree to guarantee, during the period for which they
have proposed a payroll deduction, to maintain as a minimum amount of
work not less than the total man-hours worked by each class of employees
In the year 19301—the distribution of this work to be made by mutual
agreement between the representatives of the employees affected and the
management of each railroad contemplating the full observance of existing
schedule rules unless otherwise agreed by the parties to the existing agreement (As to the Pullman Company, this suggestion contemplates restoration to service of conductors in service as of Jan. 1 1930, so far as the lines
remain in operation.)"
The employers' committee took the counter reply under
advisement.
At Tuesday's conference the rail unions asked the presidents
to explain simply any clearly why the employees should
grant the request of a 10% wage reduction. The session
to be held Wednesday Jan. 20 was postponed to enable the
executives to collect more data in support of their plea for
a 10% wage reduction which was asked at Tuesday's conference by the unions.
On Thursday Daniel Willard submitted to the chiefs of
the 21 unions in support of the demand for a 10% reduction
in wages an array of figures summarizing the trend of
railway finances. (The full statement is given elsewhere
in this issue). It is expected that the unions will have
their reply to the presidents' statement read by Saturday.
In commenting on the conferences the New York "Times,"
Jan. 22 states in part:
The major points of the six-hour day and the 10% wage reduction was
still at issue. The roads did not recede from their refusal to agree that a
joint commission shall undertake a study of the six-hour day, and the
unions stuck to their refusal to grant wage reduction. The presidents
however, agreed to eliminate from their wage proposal the concluding
clause that the reduction should remain in force for a year "unless
extended
by agreement."
620
FINANCIAL CHRONICLE
The unions made progress in their demands for stabilization of employment, but did not win assent to their complete program. The employers
reiterated their desire to do "whatever may be practicable" to eliminate
unemployment and struck out the words "so far as possible" from this
sentence.
What seemed to be an important concession was the expressed willingness of the Committee of Nine to use its good offices in the case of disputes
In the interpretations of the promise to aid in giving employment. Disputes
on this question would be handled by subcommittees of both sides.
A short conference was held yesterday (Friday) morning
at which Daniel Willard addressed the 800 rail union general
Chairmen, together with the 21 union heads and their
advisory committees. He took up in full detail all the
subjects before the conference. He reviewed the position
of the railroads to the general Chairmen with respect to
granting the various requests of labor, and gave the reasons
why the railroads had gone as far as they had, but could
not go further. He expressed the hope that eventually
they would work out a solution for all these matters.
The conference is moving steadily towards a conclusion,
but the necessary procedure makes it unlikely that final
agreement will be ready for announcement before some time
to-day (Saturday) at the earliest.
Following yesterday morning's session, the 800 general
Chairmen met with their respective officers to formulate
their recommendations on the railroads' 10% deduction
proposal. The union Presidents then met to prepare a
reply to be delivered to the Presidents' committee at a joint
session to-day (Saturday).
This reply, according to D. B. Robertson, union spokesman, probably will be a definite statement of what labor is
willing to do in regard to the Presidents' proposal, in the
light of the Presidents' expressed attitude toward labor's
program.
Mr. Robertson, according to dispatches, said that labor
to-day (Saturday) would make a final effort to induce the
Presidents to consent to the appointment of a joint committee to study the applicability of the six-hour day.
The Presidents' committee, it is understood, expects to
continue its official existence so that any questions arising
from the application of an agreement at this conference can
be handled through its regional representatives.
Railroads Tell Unions Why They Ask Wage Reductions
—Present Figures Showing Heavy Losses in Income
—72 Roads Failed by $90,000,000 to Earn Fixed
Charges in 1931 and Many Face Bankruptcy Unless
Present Net Earnings Increase.
The railway presidents came forward at the Thursday
morning's rail-labor conference being held in Chicago with
the important statistics demanded by the union labor
chiefs in support of the plea for acceptance by the brotherhoods of a 10% wage reduction. The figures presented by
the Presidents' Committee of Nine, through Daniel Willard,
President of the Baltimore St Ohio, deals with freight and
passenger earnings, operating expenses, the decline in the
number of employees, the sharp drop in employees' aggregate
earnings, the reduction in railway purchases and the loss in
net operating income. Except for the possibility of relief
through the wage reduction the picture sketched is one of
unrelieved gloom. In his portrayal of the results that would
follow a large number of railroad bankruptcies, Mr. Willard
points out that life insurance companies own $3,000,000,000
of railroad bonds and that mutual savings banks own
$1,700,000,000 of them, which help to support and protect
life insurance policies of 50,000,000 persons and the savings
of 12,500,000 depositors.
Text of Railways' Memorandum.
The text of the memorandum filed by the President's
Committee of Nine with the union leaders as reported in the
New York "Times" follows:
Memorandum supplementary to statements made by the Chairman of the
Railway Presidents Committee in support of the requests of the
Railways.
Ten per cent to be deducted from each pay check for a period of one year.
Basic rates to remain as at present. This arrangement to terminate automatically 12 months after the plan becomes effective.
The business depression, which began late in 1929, probably has been the
longest and most severe in history. It has caused an unprecedented decline
in railway freight and passenger business, as a result of which the gross
earnings of the railways in 1931 were $2,100,000,000, or 33% less than
in 1929.
Statistics given at the close of this memorandum present the facts regarding the decline in total earnings that has occurred since 1929, the
reductions in operating expenses which, in consequence, have had to be
made, and the reduction in net operating income that has occurred in
spite of the great reduction in operating expenses.
,Total railway earnings in 1929 were $6,360.000,000; in 1930, $5,343.000,000, and in 1931, $4,259,000,000, a reduction in 1931 as compared
with 1930 of $1,084,000,000, and a reduction in 1931 as compared with
1929, as already stated, of $2,100.000,000, or 33%.
[VOL. 134.
Recent Declines Declared Greater.
The declines in traffic and earnings in the latter part of 1931 and thus
far in 1932 have been even larger than those that previously occurred.
Total earnings in November 1931, the latest month for which statistics
of earnings are available, were 39% less than in November 1929.
Total loadings of freight cars in the year 1931 were 29% less than in the
year 1929, while in the first two weeks of 1932 they were 37% less than the
first two weeks of 1929.
Passenger earnings in 1931 were 36% less than in 1929, while in October
1931, the latest month for which statistics of passenger earnings are available, they were 42% less than in October 1929.
The managements of the railways, with the full co-operation of the
employees, have made large reductions in operating expenses. Total.
operating expenses in 1929 were $4,561,000.000; in 1930, $3,976,000,000.
and in 1931. $3,275,000,000. Operating expenses in 1931 were $1,286,000,000, or 28% less than in 1929. In November 1931, the latest month
for which complete figures are available, they were 36% less than in November 1929.
According to the statistics of the Inter-State Commerce Commission, the
average number of railway employees in 1929 was 1,686,769: in 1930 it was
1.510.688, and in 1931 it was about 1,285.000. The average number of
employees in 1931 was about 402.000, or 24% less than in 1929.
The total compensation paid to employees in 1929 was $2,941,000,000;
in 1930 it was $2,590,000,000, while in 1931 it was about $2.150,000,000.
The total compensation paid in 1931 was $791,000,000 less than in 1929.
a reduction of 27%•
Other Cuts Equal Payroll Slashes.
Attention should be called to the fact that while the total payroll in 1931
was 27% less than in 1929, total operating expenses were 28% less. These
figures show that the reduction in the payroll has been relatively almost the
same as the reduction in total operating expenses and that, therefore, all
classes of expenses have been reduced in almost equal proportion.
To make improvements and carry on operations the railways have to
make large purchases of equipment, materials and supplies. The best
Information obtainable indicates that their purchases of equipment,
materials and supplies from manufacturers were reduced from $1,350,500,000 in 1929 to $639,000,000 in 1931, or 53%; their purchases of fuel
were reduced from $364,392,000 to $224,000,000, or 39% and their total
purchases of all kinds were reduced $851,892,000, or 50%, from 1929 to
1931, as compared with the reduction in their payroll of 27%•
Net railway operating income is the part of total earnings that is left
after operating expenses and taxes have been paid. In 1929 net operating
income was $1,275.000,000, in 1930 $885.000,000 and in 1931 only about
$534,000,000. It was $741,000,000, or 58%, lees in 1931 than in 1929.
It was only 57% less In November 1931 than in November 1929, but In
November 1929, it already had been reduced by the effects of the beginning
of the depression. The net operating income earned in 1931 was the smallest
since 1901—in other words, the smallest within 30 years.
Net Income Off 58% Since 1929.
Summarizing the foregoing figures, we find that in 1931, as compared
with 1929, the reduction in net operating income was 58%; the reduction
in all purchases, 50%; the reduction in total earnings, 33%; the reduction
in total operating expenses, 28%, and the reduction in the payroll, 27%•
The reduction in the payroll is relatively the smallest reduction that has
been made by the railways during the depression.
In spite of the enormous reduction that has been made in the operating
expenses, many of the carriers are threatened with bankruptcy because of
Inability to pay their fixed charges or to meet the principal of obligations
that are coming due for payment.
Fixed charges consist of interest on funded and unfunded debt, rent of
leased roads and some other small items. Total net income in 1931 available for paying fixed charges—including both net operating income and
what is called "other income"—was $784,000,000. The interest on funded
debt alone was $495,000,000 and the total amount of fixed charges was
$695.000.000.
These figures show that the total net income exceeded fixed charges by
only $89.000,000.
But this is not the complete picture. There were 72 individual railway
companies which failed by $90,000.000 to earn their fixed charges in 1931.
and, unless present net earnings can be increased, the number that will not
earn their fixed charges in 1932 will be much larger. The railway companies
that are failing to earn their fixed charges are plainly in danger of becoming
bankrupt.
In addition, in 1932 there will become due and payable the principal of
$405.000.000 of railroad mortgage bonds, equipment trust obligations and
other loans. These obligations must be satisfied to avoid bankruptcy.
The number of persons who would be directly Injured by a large number
of railroad bankruptcies is indicated by the fact that the life insurance companies report that they own $3,000,000,000 of railroad bonds and have
50.000,000 policy holders.
The mutual savings banks report that they own $1,700.000,000 of railroad bonds and have 12.500.000 depositors.
The life insurance companies and mutual savings banks together own
$4,700,000,000 of railroad bonds, which help to support and protect
50,000.000 life Insurance policies and the savings of 12,500,000 depositors
in savings banks.
Roads' Recovery Held Vital to All.
The present financial condition of the railroads is a matter of vital
importance to every one connected with the railroad industry as well as
the entire American public.
An industry that is unable to meet its fixed charges with a reasonable
margin is virtually without credit, and is, therefore, unable to raise new
capital on justifiable terms to meet bond maturities or to make improvements.
An industry that cannot make improvements cannot employ men in
making improvements.
Consequently, until the credit of the railroad industry, which has been
so seriously impaired, is restored the ability of railways to give employment
will be greatly restricted.
They are also unable, under present conditions, to make adequate expenditures upon maintenance, and, as long as this condition exists, it will
also greatly restrict employment by them.
The railways, in making improvements and maintaining their properties.
normally buy very large amounts of equipment and supplies from manufacturers, which indirectly gives employment to many thousands of men.
Their inability to make improvements and do adequate maintenance work,
therefore, curtails employment not only on the railroads themselves, but
throughout a large part of the industry of the country.
We believe a reduction in the compensation of all persons engaged in
railway service is an essential step toward enabling the railways to improve
their credit, Increase their employment and purchases, and thereby CODtribute toward a general revival of business.
JAN. 23 1932.]
FINANCIAL CHRONICLE
Tables Show Earnings.
The following figures are taken from official published reports, with the
exception of certain items regarding the year 1931, which have been partially
estimated because of the lack of complete information at the present time.
(All such partially estimated figures are indicated by an asterisk.)
Total Railway Earnings.
Year.
First 11 Months.
November.
Date—
56,360.303,775
55,890,912,371
$499.778,257
1929
5,342,957.046
399,820,297
4.966,680,198
1930
*4.259,000,000
3,948,639,835
306,077,630
1931
Total railway earnings in 1931 will show a reduction of approximately
$2,100,000,000, or of 33% under 1929. The month of November 1931
showed a reduction of 39% below November 1929.
Freight Traffic and Earnings.
Revenue Car Loadings.
Two First
Two First
Year—
Weeks.
YearWeeks.
1929
52,827.925 1929
1,712,910 1931
1,329,633
45.877,974 1930
1,639,450 1932
1930
1,075,829
37,272,371
1931
Revenue car loadings in 1931 were 15,555,554 cars, or 29% lower than
in 1929. Revenue car loadings in the first two weeks of 1932 showed a
reduction of 37% below the same weeks of 1929.
IYear
621
spokesmen for unions, who suggested that, following salary cuts the latter
part of 1931, a similar reduction in their own wages be made. It is known
Jersey Central rejected such a proposal.
Only a comparatively small portion of wage earners on such roads as
Lehigh Valley, Jersey Central, Lackawanna, Delaware & Hudson and
Reading arc nationally organized, most employees being under separate
contracts with the companies.
Presidents of most of these roads have either had it intimated to them
indirectly or proposed by a committee representing the workers that the
latter would voluntarily accept a wage cut, effective immediately, and, in
most cases, around 10%.
With exception of a few isolated cases, the carriers, especially the smalle.
ones, have felt that action on decreasing wages of company union memberr
should be held up pending outcome of negotiations with the Big Fours
It is to be assumed, of course, that when action is finally taken Presidents
of roads with a large proportion of such private agreements will immediately make effective reductions in wages of company union employees
on the basis established for the brotherhoods.
Senate Orders Study of 6-Hour Rail Day—Adopts
Couzens Resolution.
The Senate Jan. 22 adopted a resolution which is expected
to open the way to an agreement between the railroad
unions and the railroad executives on a 10% cut in wages.
This was a resolution of Senator Couzens of Michigan
directing the Inter-State Commerce Commission, assisted
by an advisory council composed of representatives of both
the railroads and the unions, to investigate the feasibility
of a six-hour day. The resolution was approved unanimously. The New York "Evening Post" on Jan. 22 on reporting the matter further stated:
Freight Earnings.
Date—
Year.
First 10 Months.
October.
1929
54,832,324,826
54,106,595,046
5483,596,185
1930
4,085.801.090
3,493,553,748
385,653,157
1931
*3,275,000,000
2,803,528,853
289,193,148
Freight earnings in 1931 will show a reduction of $1,557,000,000, or of
32% below 1929. The month of October 1931 showed a reduction of 40%
below October 1929.
Passenger Earnings.
Dale—
Year.
First 10 Months.
October.
1929
5874,036.318
5737,080,281
566,165.044
1930
625,485.159
729.635,768
52.367,993
1931
474,577,319
*555.000,000
38,202,165
Passenger earnings in 1931 will show a reduction of 5319.000,000, or of
36% below 1929. Passenger earnings in October 1931 showed a reduction
Senator Couzens, in offering the resolution, said he had messages from
of 42% below October 1929.
the conference in Chicago Indicating the six-hour day was the main issue
standing in the way of an agreement on the part of union labor to accept
Railway Operating Expenses.
the 10% wage cut. He had been informed that If Congress would take some
Date—
Year.
First 11 Months.
November.
1929
$4,107,174,935
54.560,836,482
5372.768,304 action providing for an investigation of the possibility of a shorter day it
1930
3,679,352.538
3,975.781.785
300.043.393 would help substantially in bringing about an agreement.
1931
3,024,526,027
*3,275,000.000
238.777.961
The Michigan Senator, as chairman of the Senate Committee on InterRailway operating expenses in 1931 will show a reduction of $1,286,- State Commerce, has been in frequent communication with both sides in
000.000, or of 28% below 1929. Operating expenses in November 1931 the wage conference. He has friends among the representatives of the
showed a reduction of 39% below November 1929.
railroads at the Chicago conference as well as among the labor leaders.
The labor leaders, in order to assure a favorable vote on a recommendaAverage Number of Employees.
November. tion to the union members, have been seeking an agreement with the roads
Year.
First 11 Months.
Date—
1,693.520
1.686.769
1,681.027 which holds out the prospect of more stable employment.
1929
1,524.699
1930
1.510.688
1,394.401
The main issue has been the possibility of employing more workers by
1,291,115
•1,285,000
1.169,229
1931
shortening hours. The present day, fixed by law during the Wilson AdThe average number of railway employees in 1931 will show a reduction ministration, is an eight-hour day. The labor demand had finally taken the
of 402.000. or of 24% below 1929. Employment in November 1931 showed form of a joint study of the possibility of a six-hour day by the roads and
a reduction of 30% below 1929.
the unions.
Aggregate Compensation of Employees.
Some of the railroad presidents in the conference were willing to agree to
Months.
Year.
10
First
Date—
&lobe?.
this, but the majority of them were against it. The suggestion that Federal
52.940.868.690
52.494.967.386
1929
$263,661.353 Government should make the investigation is supposed to have come from
2.590.274,843
2.203.173.560
1930
213,874.715
.2.160,000.000
1,817.053.934
1931
171.648.835 the union leaders.
lt is believed the incorporation of it in a resolution by Congress beings an
Railway wages paid in 1931 will show a reduction of $791.000.000. or of
cut very near.
27% below 1929. Wages paid in October 1931 showed a reduction of 35% agreement on the 10% wage
tielow October 1929.
Railway Purchases of Fuel, Equipment, Materials and Supplies.
Gulf Mobile & Northern Posts 20% Pay Cut Notice—
1929.
1931.
Applies to Employees Who Did Not Accept 10%
Purchased from manufacturers
$1,350.500.000
5639.000.000
364.392,000
Fuel
224.000.000
Reduction Last Year.—
Total
$1.714.892.000
5863,000.000
In 1931. as compared with 1929. railway purchases from manufacturers
5711.500.000.
or
53%;
railway
purchases
of
fuel
declined
declined $140.392.000. Or 39%; total railway purchases of fuel, equipment, material and
supplies declined 5851.892.000, or 50%.
Net Rallway Operating Income.
Year.
First ii Ai oaths.
Date-November.
51,274.595.403
1929
$1,202.707.319
$86.640.631
885.011.325
835.852.137
1930
62.594,657
.534.000.000
1931
509.502,961
37.084.372
Net railway operating income in 1931 will show a reduction of 8741,000.000. or 58% below 1929. Net railway operating income in November
1931 showed a reduction of 57% below November 1929.
Delaware Lackawanna & Western Rail Workers Propose 10% Cut in Wages—Road Declines, Pending
National Settlement—Other Eastern Roads Have
Received Similar Offers.
Approximately 10,000 employees of the Delaware Lackawanna & Western RR. have offered voluntarily to accept
a 10% cut in wages, but the management of the road has
declined the offer pending the outcome of the wage conference
between railroad labor and management now in progress
in Chicago. The employees included in the offer are members of the company's unions and unorganized labor, but
do not include members of the national railways brotherhoods. The New York "Times," in reporting the matter,
further states:
This offer follows a 10% cut taken by the officers and certain salaried
employees of the Lackawanna on Oct. 1, and similar cuts taken by about
4,000 shopmen of the New York New Haven & Hartford and close to 20.000
Company union men of the Southern Pacific. Members of company unions
of several other roads have held informal discussions on wage cuts, but
have been discouraged from making formal offers by the management
until the matter is definitely settled at tile Chicago conference.
J. M. Davis, President of the Lackawanna, said that the road was unwilling to accept the offer of only a part of its employees until the outcome
of the national railway wage conference, so that all would be treated on the
same basis.
The Boston "News Bureau" Jan. 21 states:
Several other important railroads in the East, in addition to Lakawanna,
have received offers the past three months of voluntary wage cuts from
The Gulf Mobile & Northern RR. has posted a notice of
a 20% reduction in the pay of its organized employees who
did not take a wage cut last July, when other workers of the
road voluntarily took a 10% pay cut in order to help the road
meet its charges. The "Wall Street Journal" commenting
on the notice further states:
Despite the fact that approximately 40% of the train service employees
of the combined forces of the G. M. & N. and the New Orleans Great
Northern and about 95% of the other classes of employees of the two
roads took a 10% cut last year, the G. M. & N. wound up 1931 with a
deficit after charges of approximately $225.000 and the N. 0. G. N. has
had to make application to the Railway Credit Corp. for funds with which
to meet its Feb. 1 bond interest.
The N. 0. G. N. Just about covered its fixed charges during 1931 but
in order to do this it was necessary to defer as much maintenance work
as possible. In view of the depreciated condition of the company's road
and equipment, it may be found necessary to scale down the amount of
bonds outstanding and give the holders preferred stock for the difference,
if present trends of revenue and expense continue.
The N. 0. G. N. came under control of the G. M. & N. through an
exchange of stock. The two roads form an entrance into New Orleans
for a proposed north and south system to be headed by the Chicago, Burlington & Qunlcy. The Burlington owns about 40% of the stock of the G.
M. & N.
Business on the G. M. & N. so far this year has continued at a low rate.
loadings of practically all classes of freight showing substantial declines
from 1931. The only bright spot in the picture is that a large lumber
operator has reopened his mills on the theory that demand for timber can
not become less.
The Gulf, Mobile & Northern is not represented at the meeting in Chicago
between a committee of railway presidents and leaders of the railroad
brotherhoods, at which the matters of a 10% wage cut and the unemployment situation are being dIscuss-d. The road decided that in view of the
financial condition of the system, particularly the N. 0. G. N., it needed
more and quicker relief.
United States Senate Adopts Resolution Calling on
Inter-State Commerce Commission to Study Question of Six-Hour Day for Railroads—Senator Couz.•
ens Proposal to Effect Wage Agreement.
The U. S. Senate yesterday (Jan. 22) adopted a resolution calling on the Inter-State Commerce Commission to
study the feasibility of the railroads adopting the six-hour
622
FINANCIAL CHRONICLE
[Vol.. 134.
day. Associated Press advices from Washington yesterday said that the Guaranty Trust Co. had a total investment
in Germany, in the form of commercial loans to banks and
said:
The resolution was offered by Chairman Couzens of the Inter-State bankers, of $38,260,000. Mr. Potter explained that the
Commerce Committee, which earlier had approved it unanimously.
company has approximately $35,000 in miscellaneous GerThe Commission would be asked to report by Dec 311932.
man securities, and the Guaranty Co. of New York, its sebetween
Couzens said reports had come to him from Chicago conferences
the railroad brotherhoods and executives that if Congress took some in- curity affiliate, has less than $200,000 in German securities.
terest in the six-hour day an_agreement might be reached between conMr. Potter added that one other important development
tending factions.
the year was the reduction of capital of the Guaranty
during
difference
of
point
Couzens said he had been informed that the principal
at the Chicago conferences was the six-hour day,and there was a lack of Co., which found that it had surplus funds that it did not
information as to the effect the shorter workday would have on present deem necessary for the conduct of its business. This reducconditions.
tion was effected by the purchase for cash of 100,000 shares
at par from Guaranty Trust Co., the sole stockholder,
&
Bank
Chemical
of
Percy H. Johnston, President
the Guaranty Co. with a capital of $10,000,000 and
leaving
of
Costs
Trust Co., Says Lowering Operating
of $2,698,000, after all securities had been marked
surplus
a
Most
, Federal,tState and City Governments Is
to
down
market.
The directors of the trust company were
of
Return
in
Factor
Important Contributing
for
re-elected
the
year. At the annual meeting of
ensuing
ers.
Stockhold
Prosperity—Annual Report to
the meeting of the stockof
the
board
following
directors,
Chemical
According to Percy H. Johnston, President of the
for the ensuing year.
were
holders,
all
officers
re-elected
immost
Bank & Trust Co. of New York, "probably the
resignation of Charles
the
Also
at
the
board
of
the
meeting
is
portant contributing factor in the return of prosperity
H. Allen as a director was accepted with regret.
nation,
our
the necessity of lowering operating costs of
governStates and cities." Better conditions and better
Annual Meeting of Stockholders of Empire Trust Co.
abandon
of New York—Investment in Foreign Bonds Not
ment will be enjoyed, says Mr. Johnston,"when we
borne
in Excess of $750,000—No Investments in German
the fallacy that the cost of government should be
Bonds.
by 2 or 3% of the population." These views were expressed
s on
by Mr. Johnston in his annual report to the stockholder
At the annual meeting of stockholders of the Empire
Jan. 20. The report follows:
Trust Co. of New York on Jan. 20 all the retiring directors
Chemical Bank dz
All things considered, the results of the operation of the
were re-elected. The President, in answer to a question,
satisfactory.
than
more
been
have
Trust Co. during the past year
the unprecedented stated that the investments of the company in foreign bonds
to
due
one,
trying
most
a
been
has
closed
just
year
The
and which has or credits did not exceed $750,000, more than half of which
depression which has extended to every part of the world
affected adversely business conditions of every country.
the British short-term credit
of security values consisted of a participation in
As a result of more than two years of drastic deflation
done to-day greatly arranged through J. P. Morgan & Co. These investments,
business
of
volume
the
find
we
prices,
commodity
and
nominal or altogether like all the others of the company, are carried in its statereduced and the margin of profit for the most part
have resulted in
eliminated. However, constructive measures adopted
has no investment
costs of production. ments at market value. The company
economies, increased efficiency and a lowering of
to arrest the forces in German loans or credits.
designed
prospect
in
definitely
legislation
is
There
of deflation.
the return of prosProbably the most important contributing factor in
our nation, States
perity is the necessity for lowering operating costs of
determination to live
and cities; a balancing of their budgets, and a fixed
in my opinion,
and,
within their incomes. Better conditions will prevail,
we abandon the
better government will be enjoyed by our nation when
of the
fallacy that the cost of government should be borne by 2 to 3%
population.
predict
accurately
At such a time as the present it is impossible to
future
how much longer the depression will continue, but we can face the
will unques•
with the knowledge and conviction that the prosperity which
upon a
tionably follow the present period of uncertainty will be based
Continent
sound foundation, and that the institutions established on this
courage
is
to-day
all
of
most
is
by our forefathers will endure. What needed
ourselves
and confidence—courage in our undertakings and confidence in
may arise
and in our ability to meet the problems of to-day and any that
in the future.
The year 1931 was the one hundred and eighth of this Bank's history,
this long
and one of the most difficult through which it has passed in
period of time.
merging
the
At this meeting to-day the shareholders are asked to approve
needless
of the Chemical Securities Corporation into the Bank. I feel it
fully set
to further comment on the reasons therefor, as they were
forth in my letter to you of Dec. 19. I am happy to be able to report
capital
that notwithstanding the drastic decline in all security values the
in the
and surplus of the Securities Corporation are practically intact and
main of a liquid nature.
During the greater part of the year money rates were low, and the Bank
liquidity
pursued a conservative policy in maintaining an unusual degree of
(averaging approximately 75%). These conditions prevented the Bank
from taking advantage of its potential earning capacity.
of the
The financial statement following this report shows the condition
and
Bank at the close - of business Dec. 31 1931, and discloses its strong
liquid position.
the corresponding
The deposits as of Dec. 31 1931 were smaller than at
averaged $11,013,968 more than
date in 1930. For the year 1931 deposits
those in the year 1930.
pensions and extra
After charging to earnings account all expenses,
and setting up tax
compensation to employees, and after charging off losses
year's earnings
and other reserves, the disposition of the balance of the
was as follows:
33,780.000.00
•Dividends amounting to 18% on the shares of the Bank
958.000.00
Special reserve for contingencies
300,000 00
Reduction In book value of banking houses
40.000.00
relief
Subscription emergency unemployment
1,332.864.09
Added to urAmided prof.ts
36,410.864.09
Securities Corp.
•This figure includes 8735.000 contributed by Chemical
834 during
The Bank is owned by 12,444 shareholders, an increase of
the year.
are
officers,
88
There are at present 1,134 members on our staff, of whom
branch managers and assistant branch managers.
ITEMS ABOUT BANKS, TRUST COMPANIES, &c.
Arrangements were reported made this week for the sale
of a New York Stock Exchange membership for $150,000.
Last preceding sale, $152,000.
Two New York Cotton Exchange memberships were sold
this week, that of James J. Oliver to William J. Jung, for
another, for $13,700 and the second membership of Robert
M. Harriss to E. J. Schwabach for another, for $14,000.
Arrangements were reported made this week for the sale
of two National Metal Exchange memberships for $800
and $850, respectively. Last preceding sale, $600.
At the stockholders meeting held Jan. 20 the following
directors of the Hibernia Trust Co. of New York, whose
terms expire, were re-elected: T. F. Bennett, Philip De
Ronde, Frank H. Hall, John G. Jackson, William H. Johns,
Fred Lavis, Russell T. Mount and A. J. Walter. A separation of the Hibernia Investing Co. and the Hibernia Trust
Co. was approved as was the change of name of the former
to Newkroy Corporation. The following were elected directors of the Newkroy Corporation: Arthur S. Kleeman,
Howard Reid, Donald Adams, Clarence Dauphinot, Philip
De Ronde, A. J. Walter and Pike P. Waldrop.
At the annual meeting of the stockholders of the National
Mortgage Corp., held on Jan. 13, two new directors were
added to the Board: J. Stewart Baker, Vice-Chairman, and
Chairman of the Executive Committee of The Manhattan
Company and Vice-Chairman of the Bank of Manhattan
Trust Co.; Harry E. Randel, Vice-President of the National
Mortgage Corp.
At the annual meeting of the board of trustees of Central
Hanover Bank & Trust Co. this week, the officers whose
terms expired were re-elected.
At the annual meeting of stockholders of Clinton Trust
Co. of New York on Jan. 21 (Thursday), the following directors were re-elected: Lee S. Buckingham, John Horn, John
Mullen, Frank S. Parker, Robert C. Schock and Howard
S. Van Bomel.
A charter was issued by the Comptroller of the Currency
on Jan. 9for the First National Bank In Callicoon, Callicoon,
N. Y., with capital of $100,000. Charles P. Kautz heads the
new institution and W. L. Dodge is Cashier.
Annual Meeting of Stockholders of Guaranty Trust
Co. of New York—Holdings of German Securities.
At the annual meeting (Jan. 20) of the stockholders of
the Guaranty Trust Co. of New York, presided over by
William C. Potter, President, it was announced that the
company had paid its dividends of $18,000,000, or 20% on
its capital stock, and had taken out of undivided profits
At the organization meeting of the Board of Directors of
$14,000,000 to be used as a reserve against possible conChemical Bank & Trust Co. of New York on Jan. 21,
the
Potter
Mr.
s
stockholder
tingencies. In a brief statement to
1=IMINMEN\
JAN. 23 1932.]
FINANCIAL CHRONICLE
Percy H. Johnston, President, announced the following
changes in the official staff of the institution. E.0. Detlefsen was appointed Assistant Secretary; Raymond C. Ball,
former Treasurer of the Chemical Securities Corp., was appointed Manager in charge of the 44th Street & Broadway
office of the Chemical Bank & Trust Co., and J. D. Magill
was appointed Assistant Manager of the Madison Avenue &
46th Street office. The annual report of President Johnston
to the stockholders on Jan. 20, is referred to elsewhere in our
issue to-day.
According to an announcement by Harvey D. Gibson,
President of the Manufacturers Trust Co., of New York, the
stockholders of that company and the Chatham Phenix
National Bank & Trust Co. met on Jan. 18 and approved the
merger of the two institutions, to be operated under the name
of Manufacturers Trust Co. Mr. Gibson's announcement
said:
Proxies for 998,463 shares out of a total of 1,100,000 shares of Manufacturers Trust Co., of 90.77%,and 721,293 shares out of a total of 810,000
shares of Chatham Phenix National Bank & Trust Co. stock, or 89.05%,
were voted in favor of the merger. This extremely large vote is believed
possibly to be a record in this respect.
623
leaving $66,615.48 to be transferred to undivided profits.
"The latter account," Mr. Rogers said, "shows a reduction
from Jan. 1 1931, which is a reflection of the depreciation of
securities held as investments. Our investment account
consists of high grade securities, 98% of which are domestic.
A moderate upturn to better prices would quickly show full
racovery to book values." Mr. Rogers also said:
The average deposits of the company during the year held steadily and
because of certain special funds, our deposits temporarily reached a new
high for all time. In the trust department, the assets, including custody
accounts, have increased by 8.4% during the year, and in the last five years
show an increase of 138.4%.
We opened on March 1 1931, our uptown branch at 1002 Madison
Avenue and business there has shown a satisfactory growth.
The Bank of Rockville Centre Trust Co. of Rockville
Centre, Long Island, assumed on Jan. 7 the assets and
liabilities of the First National Bank of Rockville Centre,
with the co-operation of the Nassau County Clearing House
Association, which was organized by representatives of
50 Nassau banks at a meeting in the Garden City Hotel on
Jan. 7. A dispatch from Rockville Centre to the New York
"Times" reporting this said:
The members of the new association, which is modeled after the New York
Clearing House Association and aims to stabilize banking in Nassau County,
contributed to a pool of $375,000 and bought the three-story building of
the First National Bank at Sunrise Highway and Park Ave. here.
Charles K. Beekman, Beekman, Bogue, Clark & Griscom.
William H. Kniffin, Vice-President of the Bank of Rockville Centre
Edwin J. Beinecke, President, Sperry & Hutchinson Co.
Trust Co., said the First National Bank would keep open its quarters
Edgar S. Bloom, President, Western Electric Co.
for a few days, while records were transferred to the other bank building
Thomas L. Chadbourne, Chadbourne, Stanchfield & Levy.
at Merrick Rd.and Village Ave. here. Dr. Frank Delano, President of the
James It. Conroy, Executive Vice-President, Manufacturers Trust Co.
trust company, said that depositors of the First National Bank would be
Robert E. M. Cowie, President, Railway Express Agency, Inc.
paid in full by his bank if they demanded their money.
Charles A. Dana, President, Spicer Manufacturing Co.
The First National Bank was organized in 1907 and moved into its
Horace C. Flanigan, President, Adams-Flanigan Co.
present quarters three years ago. Frank Gardner resigned as President
Charles Froeb, President, Lincoln Savings Bank.
a month ago, being succeeded by Cadman Fredericks of Babylon. Former
Harvey D. Gibson, President, Manufacturers Trust Co.
Mayor Charles E. Richmond of this village then resigned as President
L. Boyd Hatch, Vice-President, Atlas Utilities Corp.
of the South Shore Trust Co.to be assistant to Mr.Fredericks. Absorption
Frank J. Heaney, President, Everett, Heaney & Co.
of the bank will release 30 employees.
Richard K. Higgins, Vice-President, Chatham Phenix National Bank &
Elected as officers of the new clearing house association were:
Trust Co.
President.—Willlam F. Loch, National City Bank of Long Beach.
John L. Johnston, President. Lambert Co.
Vice-President.—Daniel Underhill, Bank of Hickmille.
Oswald L. Johnston, Simpson, Thacher & Bartlett.
Secretary.—Edward Nash, Garden City Bank & Trust Co.
C. L. Jones, Director, Vacuum 011 Co.
Directors.—John K. Eldridge, First National Bank & Trust Co. of
William B. Joyce, Chairman, National Surety Co.
Freeport; Francis G. Hooley, Nassau County National Bank of Rockville
Louis G. Kaufman,President, Chatham Phenix National Bank & Trust Co. Centre; George D. Smith, First National Bank of Mineola; Harry Hedgers.
Fred M. Kirby, Vice-President, F. W. Woolworth Co.
First National Bank of Glen Cove; W. G. Gennard, Bank of Great Neck.
Daniel J. Leary.
Albert C. Lehman, President, Blaw-Knox Co.
Paul F. Ely was elected a Vice-President of the Brooklyn
Joseph J. Lerner, President, Lerner Stores Corp.
George McDonald.
Trust Co. at the annual organization meeting of the Board
Thomas H. McInnerney, President, National Dairy Products Corp.
of Trustees on Jan. 21. Other officers were re-elected for
Samuel McRoberts, Chairman, Chatham Phenix National Bank & Trust
the ensuing year. Mr. Ely had been an Assistant Secretary
Co.
John P. Maguire, President, Textile Banking Co.
of the company since Feb. 15 1930. He will continue to be
Lindley C. Morton, Birmingham, Ala.
associated with Harold I. Spence, Vice-President, in the
Maurice Newton, IIaligarten & Co.
trust investment division. Prior to his first connection
C. R. Palmer, President, Cluett, Peabody & Co.
Frank Phillips, President, Phillips Petroleum Co.
with the Brooklyn Trust Co. on Nov. 1 1929, Mr. Ely was
Harold I. Pratt. Charles Pratt & Co.
with Wood, Struthers & Co.
associated
Harold C. Richard.
Walter E. Sachs, Goldman, Sachs & Co.
The National Bank of Rensselaer, at Rensselaer, N. Y.,
Harold V. Smith, Vice-President, Home Insurance Co.
J. Fred Talcott, President, James Talcott, Inc.
closed its doors on Jan. 19 and requested the Federal BankHenry C. Von Elm, Vice-Chairman, Manufacturers Trust Co.
ing Department to take over and liquidate its assets "in
Max S. Well, Samuel Well & Son.
Sidney J. Weinberg, Goldman, Sachs & Co.
the interest of the depositors." Associated Press advices
The merger agreement as ratified provides for 40 directors.
Their names, as announced by Mr. Gibson, follow:
An item regarding the merger appeared in our issue of from Rensselaer, from which the foregoing is taken, went
on to say:
Jan. 2, page 76.
At the annual meeting of the stockholders of the Title
Guaranty & Trust Co. of New York, hold Jan. 19, the following trustees whose terms expired were re-elected:
The directors issued a statement expressing a belief that the depositors
would receive 100 cents on the dollar, but explaining that the closing was
necessary because the bank's assets woe "frozen."
On Jan. 15 1932 Joseph A. Broderick, New York State
Superintendent of Banks, announced that he had on that
day taken over the business and property of the Massena
At the organization meeting of the trustees which followed Banking & Trust Co. of Massena, N. Y., because of the nonthe present officers of the company were re-elected. Clinton liquid condition of its assets. The deposit liabilities of the
D. Burdick continues as President and Frederick P. Condit Institution, as shown by the books at the close of business
Jan. 14 1932, were approximately $1,100,000.
as Executive Vice-President.
Philip A. Benson, Thomas M. Debevolse, Walter E. Frew, Robert
Ocelot, Rawdon W. Kellogg, Alfred E. Marling, Albert G. Milbank,
James Speyer, Willis D. Wood.
Cornelius H. Luyster was appointed Vice-President of the
First National Bank of Glen Head, Long Island, N. Y., on
Jan. 20, at a meeting to fill the vacancy caused by the resignation of Supervisor Harry Tappet). of Oyster Bay, according to advices from Glen Head to the New York "Times"
on that date. G. Thomas Powell of Glen Cove was re-elected
Cash and other quick assets of the Fulton Trust Co. of President, it was stated.
New York, including Government bonds, securities, at the
Tile annual report of Marine Midland Corp. (head office
market, and demand loans, amounting to 104.5% of net
demand deposits, reflect the notably liquid condition of that Buffalo, N. Y.) for the year 1931, made public Jan. 20, gives
institution, according to Edmund P. Rogers, President, operating earnings of the Corporation and the present conat the annual meeting on Jan. 20. Adhering to personal stituent banks, trust companies and security affiliates at
banking and personal trusts and not engaging in any features $1.42 per share of capital stock outstanding. Consolidated
of commercial banking, the trust company, he said, was operating earnings of the holding company and its banks,
able to report gratifying progress last year. As an inno- trust companies and security affiliates were $7,889,926.88.
vation in bank statements, the company showed the con- Dividends paid during the year were $6,450,608.10. George
stituent items of undivided profits, reporting $306,615.48 F. Rand, President of the corporation, in submitting the
actual earnings for last year and $240,000 dividends paid, report to the stockholders, said in part:
All directors of the National Safety Bank & Trust Co. of
New York were re-elected at the annual meeting of the
stockholders with the exception of Reuben E. Bach, Herman
A. Benjamin, Fred Finkelstein, Nat Garfinkel, and Aaron
Turkewich.
624
FINANCIAL CHRONICLE
"Due to prevailing conditions in general business and finance, many
adjustments have been necessary during the year, in line with the conservative policies of the institutions in the group. Additions have been made to
the capital of several of the constituent banks and trust companies, and
substantial BUMS have been transferred from surplus and undivided profits
to reserves. It will be noted that the condensed combined statement of
condition of the constituent banks and trust companies makes a very strong
showing with a favorable ratio of capital to deposits, and large holdings
of cash and of United States Government securities. There was a substantial decrease in loans and discounts during the year.
"In 1931 Marine Midland Corp. acquired three banks: First and Second
National Bank & Trust Co. of Oswego, Oswego, N. Y.; Bank of Batavia,
Batavia, N. Y., and Union Trust Co. of Endicott, Union N. Y. The stocks
of these were acquired for cash and through the exchange of Marine
Midland Corp. capital stock purchased in the open market, thus requiring
no increase in the outstanding stock for this purpose.
"The Oswego Bank is the outstanding commercial bank in that area. As
a result of the completion of the Welland Canal connecting Lake Erie and
Lake Ontario, and the Federal Government's harbor development, it is
expected that the importance of this center for shipping, milling and manufacturing will substantially increase. This bank had resources as of
Dec. 81 1931 of $6,208,867.42. At the time of acquisition of the Oswego
Bank, Floyd L. Carlisle Chairman of the Board of Niagara Hudson Power
'Machold, Vice-President of F. L. Carlisle & Co.,
Corp., and H. Edmund
Inc., joined the Board of Directors of Marine Midland Corp. Both are
important factors in utility and industrial activities in the State.
"The Bank of Batavia is the largest bank in Batavia, an important
in
manufacturing city located midway between Buffalo and Rochester,
which cities two of the largest Marine Midland banks are located.
Union
"It has resources as of Dec. 81 1931 of $5,384,033.58. The area
Trust Co. of Endicott is an important addition in the Binghamton
1931 of
where we now have three banks. It had resources as of Dec. 31acquiring
$1,770,257.75. These acquisitions were in line with our policy of
banks in important centers in the trade area we serve.
Currency in
"It may be of interest to note that the Comptroller of the permitted.
his annual report recommended that trade area branch banking be
were
"Combined deposits of the constituent banks and trust companies
by Marine
$409,825,259.28 as of Dec. 31 1931, including cash on deposit deposits of
bank
in
year
Midland Corp. The large shrinkage during the
conditions. Many
the nation was an inevitable accompaniment of existing
received much
new accounts have been added during the year, and we have
has been built
that
benefit in individual institutions from the confidence
up over a long period of years.
and trust
"While the aggregate investments of Marine Midland banks there has
companies have not shown a material change during the year,
$20,000,000.
over
of
securities
been an increase in United States Government
that the
Other changes have been made in the portfolios, with the result
character of the investments has been materially strengthened.
Personal
the
"The volume of new business secured and the earnings of
Trust Departments were very satisfactory.
"Operating income of constituent banks and trust companies and security
for
affiliates amounted to $7,114,771.70. These earnings, after providing
minority interest, plus the earnings of Marine Midland Corp. from sources
to
amounted
companies
trust
and
banks
other than its interest in these
$7,889,926.88, equivalent to $1.42 per share of capital stock outstanding.
"The Boards of Directors of the respective institutions have considered
that, in view of existing conditions, it is conservative banking policy to
set up substantial reserves at this time. Accordingly, $14,833,009.17 has
been charged to surplus and undivided profits for this purpose by the constituent banks and trust companies, and $5,000,000 has been set up by
the holding company.
"During the year the Corporation has expended $4,077,838.65 in cash to
acquire new banks and to Increase the capital structure of its constituent
banks and trust companies.
"The banks In the Marine Midland group have pursued the policy over a
local
long period of years of aggressively assisting In the development of and
enterprises. We believe that our growth depends upon the growth
in
being
prosperity of the local community. Our sympathy and interest,
each community where our banks are located, are fully and ably represented
many
by directors, officers and employees who have served these banks for comyears and whose business and social activities are identified with the
development
their
munities they serve. The many enterprises assisted in
by Marine Midland banks form the nucleus of the strength and stability
of these banks.
"With the organization of Marine Midland Corp. it was believed that
bank
because of increased resources and wider contacts the ability of each
proven to be
In the group to assist customers would be increased. This has
can be even
the case. It is believed that this progressive banking policy
The highly
more successfully carried out in the futurethan in the past.
ample
opporaffords
serves
group
developed area which Marine Midland
is planned
tunity for the type of banking service that is offered. No change
one of the strongest features
in this policy, which has proven itself to be
of the group during the past."
[Vox. 114.
page 248), the Hartford "Courant" of Jan. 20 carried the
following:
Arthur D. Johnson, Vice-President of the Phoenix State Bank & Trust
Co.; Lester E. Shippee, Vice-President of the Hartford-Connecticut Trust
Co., and George F. Kane, Vice-President of the Hartford National Bank &
Trust Co., were appointed appraisers of the assets of the City Bank & Trust
Co. by Judge Allyn L. Brown in Superior Court, Tuesday (Jan. 19).
Thomas Hewes was confirmed as temporary receiver for the City Bank
Trust Co.
your months from Feb. 1 was limited as the time for presentation of
claims. The court order provides for notice to depositors of the amount
of their deposits in the bank. These will be considered as a claim for that
amount unless there is a different claim made by depositors.
The personnel of the New Britain National Bank of
New Britain, Conn., with which the City National Bank of
New Britain was recently consolidated, remains as heretofore, being as follows: A. J. Sloper, Chairman of the Board
of Directors; F. S. Chamberlain, President; E. N. Stanley,
Vice-President; W. H. Judd, Cashier, and C. L. Sheldon,
A. S. Parsons, H. W. Hatsing and R. J. Bertini, Assistant
Cashiers.
With reference to the affairs of the Industrial Bank &
Trust Co. of Roxbury (Boston), Mass., which closed Mar. 19
of last year, the Boston "Transcript" of Jan. 19 carried
the following:
Twenty-five indictments were returned by the Suffolk County grand
jury to-day in Its investigation into the affairs of the closed Industrial
Bank & Trust Co. The grand jurors made their report to Judge Louis S.
Cox and then returned to their quarters for further deliberation, Assistant
District Attorney John J. Murphy having further evidence to offer in
connection with the investigation.
Fourteen indictments were previously returned in this case.
Manson R. White, Treasurer of the Berkshire Trust Co.
of Pittsfield,Mass., committed suicide early in the morning of Jan. 13. Mr. White, who was 54 years of age, had
been with the institution, formerly the Berkshire Loan &
Trust Co., since 1896, becoming its Treasurer about two
years ago. Ill health is believed to have been the reason
for his act. Associated Press advices from Pittsfield, reporting the matter, also said:
Judge Charles L. Hibbard, President of the bank, said the institution
had held its annual meeting yesterday (Jan. 12) and that its condition
was perfectly sound. Other banks in the city signed a statement to-night
asserting their confidence that the bank was solvent.
Bank officials said withdrawals were quite heavy to-day, but that they
planned to have plenty of cash on hand to meet any developments.
On Jan. 12, the Georgetown National Bank of Georgetown, Mass., with capital of $50,000, was placed in voluntary
liquidation. The institution has no successor.
Announcement was made on Jan. 20 by Samuel C. Hutchinson, President of the Security Trust Co. of Lynn, Mass., that
his institution had purchased the assets of the Sagamore
Trust Co. of the same city and would assume all of its
liabilities and guarantee its deposits. The Boston "Trans.
script" of Jan. 20, from which the above information Is
obtained, continuing, said:
He (Mr. Hutchinson) said business of the Sagarnere Trust would be
carried on at its present location for the time being, hut that eventually
It will be transferred to the banking quarters of the Security Trust.
The consolidation will create an institution with depoOts of approximately
$9,000,000, as those of the Security approximate $7,000,000 and those of
the Sagamore total, roughly, $2,000,000. Each bank has capital of $200,000,
while surplus of the Security on Dec. 81 last was $300,000, and of the
Sagamore was $100,000.
Reorganization of the Casco Mercantile Trust Co. of Portland, Me., one of the largest banking institutions in that
city, with subscription of $500,000 in new capital stock, has
been announced, according to advices from Portland on
Jan. 15 by the Associated Press. That Harry M. Verrill, a
Portland attorney, had been elected to bead the institution's
Allen W. Holmes, formerly Executive Vice-President and
advisory committee was stated in the dispatch, from which
Trust Officer of the Middletown National Bank & Trust
we also quote further as follows:
Presidency
the
to
advanced
Co., Middletown, Conn., was
The bank's last statement listed total resources as of Jan. 1 at $23,141,572
Beach,
A.
of the institution on Jan. 12, succeeding Francis
and deposits exceeding $19,000,000. Capital stock was listed as $770,000,
hold
to
continue
will
Holmes
$425,000, and undivided profits $442,111.
surplus
Mr.
who resigned recently.
The bank was organized in 1824 as the Casco Bank, and was merged
the office of Trust Officer. The new President who is with
the Mercantile Trust Co. in 1916. At one time Boston interests,
43 years old, began his business career with the East Berlin, headed by Sumner Draper, purchased control of it, and it was later sold
to
going
later
Co.,
Boston
a
to
investment group. In April 1930 Leonard F. Timberlake and
Bridge
Conn., branch of the American
E. Estes, local investment bankers, purchased the Chapman National
the Corbin Screw Division at New Britain, Conn., of the Bay
Bank, and in September of that year merged it with the Casco Mercantile
American Hardware Co. He entered the employ of the Trust.
served
has
Middletown National Bank on Aug. 1 1905 and
John W. Leigh, Vice-President and Treasurer of the
the institution continuously in all the different capacities
Bank & Trust Co. of Princeton, N. J., committed
Princeton
except that of Cashier.
suicide on Jan. 21 at his home in that city. Mr. Leigh, who
bank for
Concerning the affairs of the City Bank & Trust Co. of was 41 years of age, had been connected with the
Viceand
1919
since
Treasurer
been
George
He
had
years.
24
by
closed
Hartford, Conn., which on Jan. 2 last was
J. Bassett, State Bank Commissioner for Connecticut at Presid nt since 1930. He was also at the time of his death
the request of its directors (as noted in our Jan. 9 issue, Treasurer of the Princeton Building & Loan Association
A dispatch by the Associated Press from Glens Falls, N. Y.,
on Jan. 20, stated that on that day the First National Bank
Trust
of Glens Falls acquired the assets of the Glens Falls
$9,912,470.
of
resources
former
the
giving
Co.,
JAN. .23 1932.]
FINANCIAL CHRONICLE
625
and of the No. 20 Nassau Street Holding Corp. A PrinceAt the annual meeting of the directors of the Montclair
ton dispatch to the New York "Herald Tribune" added National Bank, Montclair, N. J., W. W. Brooks, heretofore
the following:
Cashier, was advanced to Vice-President, while retaining
No motive for the act beyond business worries affecting his health the Cashiership, according to the Newark "News"
of Jan. 14.
could be ascribed by friends and business associates. The affairs of the
Institutions with which he was connected were declared to be in order. No other changes were made in the personnel of the instituJohn Colt, President of the Princeto t Bank & Trust Co., said that the tion, it was said.
daily report of the bank shows quick assets of more than $1,000,000 in
two items: $652,000 in cash and more than $400,000 in short-term Government securities.
The Coast National Bank of Seaside Heights, N. J., a
small institution, failed to open Jan. 14, according to
The Newark "News" of Jan. 20 stated that Joseph Walker Associated Press advices from that place, which went on
was elected Vice-President of the Irvington Trust Co. of to say:
Action of the Board of Directors was taken, a notice to depositors said,
Irvington, N. J., on Jan. 19, to succeed Maxwell A. Cox,
conserve the assets. The bank was taken over by the Comptroller
who is being sought on a charge of embezzling $10,000 of to
of the Currency. The resources last were listed at $328,712 and deposits
the bank'sfunds. Other officers, all reappointed, were given at $208,010.
as follows: President, James B. Stout; Vice-President, John
A dispatch from Trenton, N. J. to the Newark "News" on
H. Nelles; Treasurer and Trust Officer, Leonard Applegate; the same date, Jan. 14, stated that plans to reorganize the
Secretary, Frank Young Jr.,and Assistant Treasurers, Allan Coast National Bank and add $75,000 to its present capital
A. Cole Jr. and Miss Catherine Zihlbauer.
of $25,000, were being made. We quote from the dispatch
furthermore, as follows:
Supplementing our item of Jan. 16 (page 454), indicating
Assets of the bank are listed at $327,088, demand deposits $112,428,
the indictment on Jan. 12 of Henry C. Steneck and his time deposits $92,519 and surplus $3,590.bank.
He took the position last
Robert W. Sims is President of the
brother George W. Steneck, former President and Vice- August after resigning as Secretary and Treasurer of the West Orange
President, respectively, of the Steneck Trust Co. of Hobo- Trust Co.
Frederick L. Morrison is Cashier and Treasurer of the Coast National.
ken, N.J., which was closed on June 27 last, the defendants
Others members of the board are Henry H. Cross, former Mayor of Seanamed appeared before Judge Daniel T. O'Regan• in the side Park; Walter F. Setzer, Borough Treasurer of Seaside flights; 0. H.
Court House on Monday afternoon, Jan. 18 and entered Eberhard, F. William Greger, William A Salt, Gardner flaring and Ira
formal pleas of "not guilty" to the four indictments for F. Smith, Borough Solictor of Seaside Heights.
violations of the State banking laws in connection with
A meeting of the respective stockholders of the Hammonthe bank's failure. The "Jersey Observer," from which the
ton Trust Co. of Hammonton, N. J., and the People's Bank
foregoing is learned, continuing said in part:
They were accompanied in Court by former Prosecutor John Milton, of Hammonton, of that place, will be held Jan. 28 1932 to
and the Court set bail on President Steneck at $25,000, which was fur- vote on a proposed consolidation of the institutions. When
nished by William Donnelly, of Mr. Milton's office.
the plan of consolidation is approved, the stock of the conThe bail of 325.000 fixed in the case of George Steneck on other indictments against him in connection with the bank's affairs, covers the new solidated bank will be divided 50% to the stockholders of
indictments against him, and Prosecutor John Drewen did not request the Hammonton Trust Co. and 50% to the stockholders of
further ball in his case. No date was set for the trial.
the People's Bank. The par value of the shares of the
Before going into court the bankers and their counsel conferred with
Mr. Drewen for a few minutes. Mr. Drewen did not read the indict- consolidated institution will be $25, and the number of
menta in court, merely referring to them and explaining their nature. shares 4,000.
The defendants are charged with making false returns of the condition of
the bank as of Dec. 31 1929, and filing false returns with the State Banking Commissioner "with Intent to deceive."
Neither had any statement to make, and as soon as the bail bond had
been arranged, they left the Court House with their counsel.
The indictments were returned last Tuesday by the Grand Jury, which
heard testimony In the case the previous Friday. On Friday of last week,
State Banking Conunissioner Smith was summoned before the Grand
July and quizzed about the administration of the bank since he had been
In control since June 29 last year. . . .
Plans tor the re-organization of the Steneck Trust Co., details of which
have been completed, but not finally passed upon, are still awaiting the
approval of the banking commissioner. Indictments of the two bankers
was considered a severe blow at the re-organization plans, but sponsors
of the re-organlzatio declare that it will have no bearing on the plan
and will in no w..y be detrimental to their being carried into effect, once
the commissioner gives his approval.
That the Lakewood Trust Co. of Lakewood, N. J., had
failed to open for business on Jan. 14, was indicated in
advices from Lakewood by the Associated Press on that
date. The dispatch continuing said:
A notice posted by the directors informed depositors that the bank had
been taken over by the New Jersey State Commissioner of Banking and
Insurance in order to conserve assets.
The bank's resources last were listed at $2,708,738, and deposits at
$1,824,736. The bank was capitalized at *250,000 and has done business
here for 40 years.
Effective Dec. 30 last, the t'irst National Bank of Rockaway, N. J., capitalized at $100,000, was placed in voluntary
liquidation. The institution was succeeded by the First
National Bank in Rockaway.
The Point Pleasant Beach National Bank & Trust Co.
at Point Pleasant Beach, N. J., failed to open for business
on Jan. 18 and a notice on the door stated that it had been
taken over by the Comptroller of the Currency at the request of the directors, according to a dispatch from Mount
Pleasant Beach to the New York "Herald Tribune", which
furthermore said:
The bank's statement as of Dec. 31 placed deposits at $247,150, loans
and discounts, $340,538, and resources, $708,948. James W. Pearce ia
President.
The directors of the Rahway National Bank, at Rahway,
N. J., at their annual meeting on Jan. 12, appointed Frederick
C. Hyer President of the institution to succeed Thomas H.
Roberts, Sr., who is in California because of Ill health,
according to a dispatch from Rahway to the Newark "News,"
which added:
Other officers named are: VicePresident, Jan Van1Fferwerden; Cashier,
L. Russell Cartwright; Assistant Cashier, Kenneth S. Simmen.
Directors of the Bernardsville National Bank, at Barnardsvile, N. J., at their annual organization meeting on Jan. 12,
chose the following officers, according to advices from that
place to the Newark "News": Harold W. Headley, President; Abram D. Runyon, First Vice-President; Dr. .Tosiah
Meigh, Second Vice-President; Chester C. Brown, Cashier,
and Ernest Ammermann, Assistant Cashier.
A Bayonne, N. J., dispatch to the Newark "News" on
Jan. 18 stated that a merger of the Bank of South Hudson &
Trust Co. of Bayonne with the Mechanics' Trust Co. of that
place had become effective that day, the stockholders of
the institutions having approved the union. The consolidation had also been sanctioned by the New Jersey Commissioner of Banking and Insurance, it was stated. The advices furthermore said:
The business of the Bank of South Hudson, it was announced, will
be
continued at Broadway and 45th Street with the same personnel, as a
branch of the Mechanics' Trust.
On completion of organization the Board of Directors will consist of the
combined Boards of both institutions.
Paul B. Huyette, formerly President of the Lehigh National Bank of Philidelphia, has been made Chairman of
the Board of Directors and Thomas E. Brennan, a member
•of the Board, appointed President in his stead, according
to the Philadelphia "Ledger" of Jan. 15. Other
officers
have been appointed as follows, it was stated: Vice-Presidents, Ralph A. Dungan, Herman S. Zahn and Harry
M.
Wagner; Cashier, Albert R. McCullough, and
Assistant
Cashier, John E. Fritz.
Terrence J. McHugh, Vice-President of the First National
Bank of Montclair, N. J., was made a director to fill a
The title of the City National Bank &
Trust Co. of
vacancy on the Board at the annual meeting of the stockPhiladelphia, Pa., was changed to the City National
Bank
holders of the institution on Jan. 13, according to the of
Philadelphia on Jan. 16.
Newark "News" of Jan. 14. At the directors' meeting
which followed, George Dewey Hynes was appointed an
On Jan. 14 the Commercial National Bank
& Trust Co.
Assistant Cashier and all the old officers re-appointed, it of Philadelphia,
Pa., changed its name to the
Commercial
was said.
National Bank of Philadelphia.
626
FINANCIAL CHRONICLE
The Northeast National Bank & Trust Co. in Philadelphia,
Pa., on Jan. 13 changed its title to the Northeast National
Bank of Philadelphia.
Advices from Erie, Pa., by the Associated Press, on Jan. 16,
reported that the Home National Bank of Union City, Pa.,
had failed to open on that date. F. A. Shreve is President
of the institution and Milton Rouse, Cashier, the dispatch
said.
On Wednesday, Jan. 20, three Cook County, Ill., banks,
two of them in Chicago and one in Elmwood Park, closed
their doors and were taken over by the State Auditor for
Illinois. The institutions are the Stockmen's Trust &
Savings Bank, capitalized at $200,000, surplus of like
amount and deposits at the time of closing of $690,000 (as
of June 30 1930 they were $2,200,000); the Service State
Bank, capitalized at $100,000 with surplus of $90,000 and
deposits on Jan. 20 of $347,516, and the Westwood State
Bank at Elmwood Park, with capital of $25,000; surplus of
$10,000 and deposits on the closing day of $47,000, as against
$250,000 on June 30 1930. The Chicago "Post" of Jan. 20,
from which the above information is obtained, furthermore
said:
A statement issued by the Service State Bank pointed out that Institution has been subjected to a steady drain of deposits for nearly two
Years, amounting to about 79% of the total of $1,668.165 on June 30
1930. The Westwood State Bank was closed because of its close relationship to the Service State.
On Jan. 19, at the request of its directors, the State Bank
Examiner closed the Depositors State Bank of Chicago,
according to advices from that city on Jan. 19 to the "Wall
Street Journal." As of Dec. 31 1931 the bank had total
deposits of $2,915,000 and loans and discounts of $2,544,000,
it was stated.
At the annual meeting of the directors of the Straus
National Bank & Trust Co. of Chicago, all the old officers
were re-appointed and 0. P. Decker added to their number
as an Assistant Cashier, according to the Chicago "Journal
of Commerce" of Jan. 13.
At the annual meeting of the directors of the Oak Park
Trust & Savings Bank, Oak Park (Cook County), Ill., on
Jan. 12, two changes were made in the personnel of the
institution, according to the Chicago "Journal of Commerce"
of Jan. 13. Paul E. Zimmerman, formerly President of the
institution, was advanced to Chairman of the Board, while
Ellis H. Denney, formerly a Vice-President, was promoted
to the Presidency.
That two Champaign, Ill., banks, the First National Bank
and the Commercial Bank had closed on Jan. 18 was
noted in advices from Champaign by the Associated Press
on that day. The dispatch said:
The First National Bank of Champaign, which listed deposits In the
recent bank call at $5,116,951 was voluntarily closed to-day by its
directors. A smaller State bank, the Commercial, took similar action.
Officers of the First National Bank said they hoped to effect a reorganization soon. N. H. Harris is President and H. S. Capron, Treasurer of
the University of Illinois, is one of the Vice-Presidents.
Advices by the United Press from Champaign on Jan. 18
gave additional information regarding the closing, as
follows:
Hundreds of University of Illinois students had their money In the
bank. A short time later the Commercial Bank of Champaign, also a
depository for University of Illinois funds and in which many students
had accounts, was closed by directors. The commercial had approximately
$500,000 deposits.
The First National Bank of Tremont, Ill., was placed
in voluntary liquidation on Jan. 12 1032. The institution,
which was capitalized at $60,000, was succeeded by the
First National Bank in Tremont.
From the Chicago "Post" of Jan. 16 it is learned that two
West Side Chicago banks were closed on that date by order
of State Auditor Nelson at the request of their directors.
The institutions are the Kimbell Trust & Savings Bank and
the West-City Trust & Savings Bank. Heavy cash withdrawals by depositors since June 30 1930 are shown by
figures announced by the State Auditor's office. The Kimbell Trust & Savings Bank lists capital of $300,000, surplus
of $150,000, and deposits of $1,400,000. Deposits on June 30
1930 were $4,700,000. The West-City Trust & Savings Bank
shows capital of $300,000, surplus of $65,000, and deposits
of $350,000. On June 30 1930 the deposits were $1,400,000.
[Vol« 184.
The First National Bank of Fairfield, Ill., capitalized at
$50,000, was placed in voluntary liquidation on Jan. 6 1932.
The institution was absorbed by the Fairfield National Bank
of the same place.
The Joliet National Bank, Joliet, Ill., with deposits of
about $3,600,000, closed its doors Jan. 19 on the decision of
its directors to conserve the assets and protect depositors
and stockholders against loss. A Joliet dispatch to the New
York "Times" also said:
Officers estimated that the assets will exceed the amount owed by about
$1,600,000. Directors expressed a belief that the bank would be reopened.
The following changes were made in the personnel of the
Guardian Bank of Dearborn, at Dearborn, Mich. '(a unit of
the Guardian Detroit Union Group, Inc.), at the annual
meeting of the directors on Jan. 14, according to the Detroit
"Free Press" of Jan. 15: Frank J. Maurice, heretofore
President of the institution, was advanced to Chairman of
the Board; Herbert Gardner was appointed President, and
Walter H. Bell was chosen Cashier. The roster of the bank
Is now as follows: Frank J. Maurice, Chairman of the
Board; Herbert H. Gardner, President; Emanuel C. Lindman and Oren 0. Otis, Vice-Presidents; Walter H. Bell,
Cashier; Percy J. Wines, William 0. Gierk and Alfred Zahrn,
Assistant Cashiers. The paper mentioned, continuing, said:
Mr. Maurice is advanced to the Chairmanship from the Presidency, which
he has held since the bank was formed. He is President of the Highland
Park State Bank, Executive Vice-President of the Union Guardian Trust Co.,
and a high official of other important Guardian units.
Mr. Gardner was Wednesday (Nov. 13) elected to the Executive VicePresidency of the Highland Park State Bank. He is President of the
Guardian Bank of Royal Oak and Executive Vice-President of the Highland
Park Trust Co., and a director of the three institutions.
Mr. Bell has been with the Guardian Bank of Dearborn since it was
formed,, and was formerly with the Highland Park State Bank.
On Jan. 15, C. H. Haberkorn, Jr., was elected President
of the Guardian Bank of Grosse Pointe, Mich., a unit of
the Guardian Detroit Group, Inc., according to the Detroit
"Free Press" of tile following day. The directors also
appointed other officers, as follows: Harold L. Wadsworth
and William It. de Baecke, Vice-Presidents; S. Willard Hosking, Cashier, and Henry C. de Yonker, Assistant Cashier.
The paper mentioned went on to say:
Mr. IIaberkorn is Vice-Chairman of the Board and Director of the
Guardian Group, President of the Guardian Safe Deposit Co., Director of
the Guardian National Bank of Commerce and the Union Guardian Trust Co.
Edwin It. Morton was made Executive Vice-President and
a Director of the Central National Bank of Battle Creek,
Mich., at the recent election of officers of that bank, according to the Michigan "Investor" of Jan. 16. In order to accept
the position, Mr. Morton resigned as Vice-President and a
director of the City National Bank of the same city, with
which he had been connected for the past 23 years, and also
as a director of the Guardian Detroit Union Group, Inc., of
which the City National Bank is a unit.
The Board of Directors of the National Savings & Trust
Co. of Washington, D. C., on Jan. 18 declaxed the regular
quarterly dividend of 3% upon the capital stock of the company, and an extra dividend of 5%, payable Feb. 1 1932,
to stockholders of record at the close of the transfer books
at 4 o'clock p. m., Jan. 20 1932.
The following changes were made in the personnel of
the Park Savings Bank of Washington, D. C., at the directors'
annual meeting on Jan. 12, according to the Washington
"Post" of Jan. 13: George E. Walker, heretofore President
of the institution, was made Chairman of the Board, while
A. F. Jorss, formerly a Vice-President of the bank, was
chosen President to succeed Mr. Walker. Robert S. Stunz,
a Vice-President, was promoted to Executive Vice-President. Mr. Jorss, the new President, heads the A. F. Jorss
Iron Works and is a director of the Second National Bank
of Washington, the paper mentioned said.
The Trigg National Bank of Glasgow, Ky., was closed
on Jan. 12, according to Associated Press advices from Glasgow. The dispatch went on to say that a statement signed
by its officials, Including W. L. Porter, President, said it
was hoped the closing was only temporary.
The closing on Jan. 13 of the Latonia Bank & Deposit Co.
of Covington, Ky., with resources of $760,480, was reported
in a dispatch by the Associated Press from Covington on
that date. The advices went on to say:
JAN. 23 1932.1
FINANCIAL CHRONICLE
Heavy withdrawals, bank officials said, caused the suspension. Warren
Elliston, Cashier, said directors felt depositors would be protected 100%.
The bank was capitalized at $50,000, had deposits of $551,065, and had a
surplus of $103,602.
627
• The New York "Evening Post" of Jan.15 quoted President
H. Johnston, of the Chemical Bank & Trust Co.,
as saying when interviewed in the matter:
Our only knowledge of the suit filed in South Carolina against this
The Citizens' National Bank of Harlan, Ky., failed to bank is the newspaper account which appeared this morning. We have
never had any interest in the People's State Bank of South Carolina other
open its doors on Jan. 12, as reported in a dispatch by the
than acting as one of its New York correspondents.
Associated Press from Harlan on that day.
Some two months ago they offered the presidency of the People's State
Bank to one of our officers, Jerre L. Dowling, then an Assistant VicePresident. He tendered his resignation to the Chemical Bank, which was
James E. Brown, former President of the National Bank accepted, and later was elected President of the
Peoples State Bank.
of Kentucky of Louisville, Ky., was acquitted on Jan. 12 in Si The closing of the People's State Bank, we are informed, was occasioned
the Federal Court in Louisville of misapplication of funds, a by the steady withdrawal of deposits by its customers.
The only interest we have in the matter is that of a secured creditor
charge growing out of the closing of the institution in Novem- along with other correspondent banks.
ber 1930, according to advices from that city on the date
named to the Cincinnati "Enquirer." We quote in part
Asserting that the group banking system it has developed
from the dispatch as follows:
in the Ninth Federal Reserve District has proved to be a
The verdict was given by the Jury on instructions from Judge Charles I.
bulwark of strength in time of financial stress, the annual
Dawson after the Government failed to make a case against,Brown.
ts.The ruling followed acquittal of Charles F. Jones, co-defendant in the report of the First Bank Stock Corp. (headquarters St.
case, yesterday (Jan. 11). Three other charges against Brown, docketed Paul and Minneapolis) was submitted to the stockholders'
for Jan. 13 were continued until June 6 after James A. Wharton, Special
Federal Prosecutor, said the Government, in all probability would have no meeting on Jan. 13 in Minneapolis. Four new members
case against the former hank President on the other indictments.
of the Board were elected at the stockholders' meeting.
A part of Judge Dawson's instructions to the Jury reads:
Included were Samuel P. Adams of Fergus Falls, Treasurer
"Possibly the popular thing to do in this case would be to submit the case
to the jury, but a Judge who courts popular acclaim rather than consult of the Ottertail Power Co.; John H. Griffin of Minneapolis,
his own conscience, guided by the law and the evidence of the case, is un- President of the Northwestern Fire & Marine Insurance
deserving of the title of a judge.
Co.; Patrick H. Joyce of Chicago, President of the Chicago,
"It matters not what may be the popular feeling in this case. This defendant is entitled to the same inpartial judgment of this Court, as is any Great Western RR.; and W.E. Stevens of Sioux Falls, S. D.,
other person brought before it, and feeling that responsibility as I do, under President of the Citizens National Bank & Trust Co. The
this evidence and under the law, I feel that I must instruct you to return a
official communication goes on to say:
verdict of not guilty."
The report, which was read by P. J. Leeman, Vice-President and
The first of the three pending indictments charge Brown and Jones,
former vice-president, with having made a false report to the Comptroller General Manager, said that net earnings for the year were $4,768,118.29
or $1.55 per share on the capital stock of the Corporation. "Charge-offa
of the Currency.
The second charges Brown,alone, with misapplication of funds of the old applicable to this year's operations were heavier than usual because of
unfavorable conditions," the report said, "but after deducting such items
Herald-Post Company.
In the third true bill, Brown, Jones; and Rogers Caldwell are charged with the net operating income amounted to $1.27 a share. This in a decline
from a comparable income figure of 81.93 a share earned in 1980."
conspiracy.
Gross earnings for the year were $22,254,718.63 compared with $28,Continuance of the cases was granted when Government counsel said
Caldwell probably could be brought here for trial by June 1, Judge Dawson 726,624.58 in 1930.
Commenting on the year's income record, the report says: "Our policy
said it would be possible to try Brown and Caldwell without presence of
Caldwell, but declared he preferred to have Caldwell in Court at the same of maintaining a highly liquid position (while at the same time taking
care of all normal and seasonal requirements in the way of commercial
time.
and agricultural loans), together with low interest rates which prevailed
Hopes for Prompt Action.
Judge Dawson said he hoped the cases would be brought speedily to trial during 1931, and the reduction, especially in the country districts, of
earnings through liquidations and charge-offs, has had the effect of rewhether he or another Judge is on the bench.
"If the defendants are guilty, they should be convicted as soon as pos- ducing our profits."
Dividends were paid during 1931 at the rate of $1.00 per share, a total
sib e," the Judge said. "If they are innocent, they are entitled to prompt
dividend outlay of $3,120,828.08.
trial."
The management reported that a number of economies are being effected
throughout the entire organization, but that if the unfavorable conditions
Closing of the First National Bank of Durham, N. C., on which were experienced in
1981 continue it would be advisable to devote
Jan. 18 was indicated in the following dispatch by the a larger portion of the earnings to increase substantially the various reserve
accounts. "We believe that ordinary business prudence indicates the
United Press from that city on the date named:
wisdom of this conservative policy, and that it would be in the best interests
First National Bank of Durham, with capital and surplus of $1,000,000 of the Corporation and its
stockholders," the report adds.
and deposits on record Saturday (Jan. 16) of $3,600,000, failed to open
The consolidated balance sheet of the Corporation and affiliated instituto-day. Increasingly heavy withdrawals, amounting to a loss in deposits tions showed total resources on Dec. 31 of
$428,571,569.98. Total deposits
of $4,000,000 since Oct. 1, caused the closing, a statement by directors said. in the banks of the system were $348,014,362.18. Evidencing the high
liquidity with which the system is being 'maintained, the report points to
The reopening on Jan. 15 of the First National Bank of the fact that the investment account of the affiliated institutions includes
the following Items:
Mount Olive, N. C., which was closed on Dec. 28 last because
Cash and due from banks
872,083,739.46
of heavy withdrawals, was noted in a press dispatch from United States Government bonds
34,962,716.91
that place on the date named, printed in the Raleigh "News Veterans' loans secured by United States Government
obligations
51,074,774.92
and Observer." The advices said in part:
Few depositors claimed their 26% allowance, and some of those who did
so entered it as new business.
Under the terms of the agreement those with less than $20 can get their
money now. Those with more can check to the amount of 25% of their
accounts and get the remainder within two years at intervals of six months.
Deferred payments will draw interest at sok.
The closing of this bank, together with three other Wayne
County, N. C., banks, was indicated in our issue of Jan. 2
last, page 80.
Referring further to the affairs of the closed People's
State Bank of South Carolina, which with its 44 branches
closed on Jan. 2 last, Associated Press advices from Columbia, S. C., on Jan. 15 stated that the Chemical Bank &
Trust Co. of New York and Jerre L. Dowling (President
of the closed institution) are accused of causing the closing
of the People's State Bank of South Carolina by "libelous
and slanderous statements" in a suit for $10,000,000 filed
at Charleston. Continuing the dispatch said in part:
The complaint alleges the good name of the People's State Bank was
injured in New York and South Carolina by libelous statements, forcing
it to close its doors. ...
The suit, filed by S. W. Parham of Columbia and the Blue Bird Taxi
Corp.,invites any other stockholders, depositors or creditors of the People's
Bank to Join in it.
Mr. Dowling, formerly Assistant Vice-President of the Chemical Bank,
came to Charleston to assume the presidency of the People's Bank six
weeks before it closed.
In connection with the suit, Chief Justice Eugene F. Blease of the State
Supreme Court signed an order citing the defendants to show cause Feb. 1
why all collateral secured through the People's State Bank and held by
the defendants and other New York banking houses should await collection until the State Bank Examiner has completed his audit of the
closed bank, which is expected to take several months.
The order also orders them to show cause why the assets of the People's
Bank should not be taken over by the Ninth South Carolina Circuit Court
of Common Pleas.
f(71rey
8168,121,281.81
This sum, representing over 45% of the deposits, is immediately available as cash. "In addition," the report adds, "we have 827,630,608.30
invested in State, county and municipal bonds, and $65,194,958.66 in other
marketable bonds, securities and commercial paper, and loans and discounts totaling $129,778,217.54, a substantial amount of which is eligible
for rediscount in the Federal Reserve bank. None of our banks on Dec. 31
had any borrowed money or rediscounts."
"The year 1931 has been a trying period for business generally, and the
world-wide economic depression has brought many new and difficult problems," the report says. "In the process of readjustment, a heavy and
Important responsibility falls upon the banks of the country, and the
success with which our banks have met the prevailing economic situation
has effectively demonstrated that the system of group banking under which
we are operating is a bulwark of strength in times of financial stress.
"The Ninth Federal Reserve District has, of course, felt the ill effects
of the present period. The severe drouth of last summer, resulting in crop
failures in many sections, the declining prices of farm and other coinmodities, the continuation and increase of unemployment, have combined
to depress industry and commerce in the territory in which we operate.
Lack of farm and other income has resulted in a shrinkage of deposits in
the country banks, with a consequent decrease in the balances which they
carry in the city banks. In view of these conditions our operating results
for 1931 are generally satisfactory. The report pointed out that 64% of
the total bank resources in the group is represented by Minneapolis and
St. Paul banks, and 36% rural banks."
On Dec. 81 the First Bank Stock Corporation System consisted of 114
affiliates. Of these 82 were National banks and 24 State banks. Fifteen
units were acquired during the year and 12 consolidations were effected
among affiliates.
A charter was issued by the Comptroller of the Currency
on Jan. 4 for the Security National Bank of Viborg, S. D.,
capitalized at $25,000. James Mee heads the institution,
with Robert Peterson as Cashier.
The closing on Jan. 20 of the Pint National Bank of Iowa
City, Iowa, and of the Iowa City Savings Bank was indi-
628
FINANCIAL CHRONICLE
cated in the following dispatch from that city to the New
York "Times":
This city was without a bank to•night after heavy withdrawals from the
First National and Iowa City Savings Banks caused directors to close them.
They were the only remaining banks after three previous closings.
The Savings Bank was capitalized at $80,000 and had deposits of
$1,082,409. Deposits in the First National were $1,488,697 and the
capital $100,000.
From St. Louis advices, on Jan. 13, to the New York
"Times," it is learned that W. L. Hemingway, Executive
Vice-President of the Mercantile Commerce Bank & Trust
Co. of St. Louis, was appointed President of the MercantileCommerce Co., the bank's investment subsidiary, succeeding
Sidney Maestro, who recently became President of the Mississippi Valley Trust Co. Mr. Hemingway also continues
as Executive Vice-President of the bank. The dispatch also
stated that the Mercantile-Commerce Co. had elected to its
Board Frank C. Rand, Chairman of the International Shoe
Co., and Edgar M. Queeny, President of the Monsanto Chemical Works.
[Vox. 134.
Two changes were made in the personnel of the Second
National Bank of Houston, Tex., at the annual meeting of
the directors on Jan. 12, as noted in the Houston "Post" of
the following day: Guy M.Bryan, heretofore President, was
made Vice-Chairman of the Board, while Beverly D. Harris,
formerly Senior Vice-President, was promoted to the Presidency to succeed Mr. Bryan. With reference to the banking
career of Mr. Bryan and Mr. Harris, the "Post" said in part:
Mr. Bryan was associated with the late S. F. Carter in the organization
of the old Lumbermen'a National Bank, which in 1923 became the Second
National Bank. He served as Vice-President of these two institutions
until 1927, at which time he was elevated to the Presidency, and now,
after 25 years of service, is elected to Vice-Chairmanship of the Board of
Directors.
Beverly D. Harris, who was elected to the Presidency of the Second
National Bank, Tuesday afternoon, was born at Frederick's Hall, Va., and
came to Houston as a boy with his father. . . . He began his banking
experience at the age of 16 as a messenger boy for the American National
Bank of Dallas, later becoming a department head in the bank, and still
later was associated with both the State National and City National banks
of that city. He returned to Houston in 1901 as Cashier of the Commercial
National Bank, and a year later was made Vice-President and Cashier of
the South Texas National Bank.
In 1912, upon consolidation of those two institutions, he was elected
which position he served until
The directors of the Fourth National Bank in Wichita, First Vice-President of the merged banks, inVice-Presidency
of the National
1915, at which time he was called to the
Kan., have announced the election of R. C. Clevenger as City Bank of New York, remaining with them in this capacity for seven
President to succeed George H.Hamilton, newly-elected Gov- years. . . .
Between the years of 1922 and 1927 Mr. Harris served successively as
ernor of the Federal Reserve Bank, Kansas City, Mo., and President
and Chairman of the Executive Committee of the Monsanto Chemthe election of H. H. Hemple as Vice-President. Mr. Heim- ical Works of St. Louis, Mo., one of the large synthetic chemical manufacple was formerly associated with the Rorabaugh Dry Goods turing companies of this country, and as Managing Director of the American
Manufacturers' Foreign Credit Underwriters, composed of the leading manuCo. in Wichita.
facturers in all lines in this country, engaged in the extension of foreign
commerce. He returned to Houston in 1927, associated himself with the
David W. Mulvane was elected Chairman of the Board of Second National Bank, and from his position as Senior Vice-President was
Directors of the National Bank of Topeka, Kan., at the Tuesday elevated to the Presidency.
annual directors' meeting on Jan. 12, according to the Topeka
"Capital" of the next day. Mr. Mulvane succeeds William
Docking, who resigned, but continues a member of the Board.
Mr. Docking, who has been prominent in Topeka and Kansas
banking circles for many years, will hereafter devote his
time to his banking interests in Lawrence, Kan., and to his
personal affairs. The directors at the same meeting promoted Arthur Wolf from an Assistant Cashier to an Assistant
Vice-President. Mr. Wolf has been with the institution for
the past 32 years. All the other officers, headed by Carl W.
McKeen as President, were reappointed, it was stated.
•
At the recent annual meeting of the directors of the Liberty National Bank of Oklahoma City, Okla., Ned Holman,
heretofore Chairman of the Board, was appointed President
of the institution, to take the place of Ben Mills, who resigned to accept a post with the Morris & Co. banking interests in Chicago, according to the "Oklahoman" of Jan. 13.
The post of Chairman was abolished. Mr. Mills, the former
President, was elected a director, it was stated.
William B. Wisdom, Advertising Manager of the Union
Indemnity Co., Detroit Life Insurance Co., and the other
members of the Insurance Securities Group of Companies,
was elected a director on the American Bank & Trust Co.
of New Orleans, I.a., at the annual meeting of the bank's
Board, held early in January. A communication in the matter furthermore says:
The field of banking is not exactly new to Mr. Wisdom, as he had considerable general banking experience as Ad‘ertising Manager of the
Hibernia Bank & Trust Co. of New Orleans, a post he held for five years.
In addition to heading the Advertising Department of the Insurance
Securities Group, Mr. Wisdom is Advertising Manager of the Standard
Fruit k Steamship Co., one of the largest banana importing companies in
the world.
It is learned from the Portland "Oregonian" of Jan. 13
that two changes were made, as follows, in the personnel
of the American National Bank of Portland, Ore., at the
directors' annual meeting on Jan. 12: J. E. Roman, President of the National Bank of Commerce of Astoria, Ore.,
was made a Vice-President of the institution, while G. E.
Stephenson, Auditor of the institution, was given the additional title of Assistant Cashier. The Bank's roster is
now as follows: Julius L. Meier, Chairman of the Board;
G. Spencer Hinsdale, President; J. E. Roman, Walter H.
Brown, Frank 0. Bates, Vice-Presidents; V. 0. Steenrod,
Cashier; A. R. Puchner, E. J. Klein, Assistant Cashiers, and
G. E. Stephenson, Assistant Cashier and Auditor.
Pascagoula, Miss., advices, on Jan. 12, printed in the New
Orleans "Times-Picayune" of Jan. 13, stated that the new
Merchants' & Marine Bank of Pascagoula had opened for
business that morning. The institution replaces the old
Merchants' & Marine Bank which closed recently. Officers
of the institution are: Edmond Jane, President; Fred Taylor, Vice-President; John D. Lowe, Cashier, and Odus Lynd,
Assistant Cashier.
Directors of the Houston National Bank of Houston, Tex.,
at their annual meeting on Jan. 12, promoted T. M. McDonold, Cashier of the institution, to a Vice-President, while
continuing as Cashier, and L. V. Hahn, heretofore an Assistant Cashier, to a Vice-President, as noted in the Houston
"Post" of Jan. 13. These were the only changes made in the
personnel of the institution, which is headed by Joe F. Meyer,
Jr., as President.
D. J. Murphy and F. G. Willis have been elected to the
Board of Directors of the Crocker First National Bank and
Crocker First Federal Trust Co. of San Francisco. Cal. Both
of the new directors are Vice-Presidents of the Crocker First
National Bank and have been connected with the institution
for more than 25 years. All of the old directors and officers
were re-elected.
THE WEEK ON THE NEW YORK STOCK EXCHANGE.
Price movements on the New York stock market during
the early part of the week were decidedly reactionary, and
while moderate improvement was apparent on Wednesday
and Thursday, the trend was again downward on Friday.
Railroad issues were frequently in the foreground and toward
the end of the week United States Steel took an upward turn
that carried it to its top for the year. One of the interesting
episodes of the early part of the week was the advance of
%, of a point,
the premium rate on United States Steel to 3
thereby recording the highest of which there is any record.
Another event of more than passing interest was the issue
of $100,000,000 New York City 6% corporate stock notes
which was marketed by a syndicate of nearly 50 banks and
banking houses and oversubscribed. The weekly statement of the Federal Reserve Bank of New York issued at
the close of business on Thursday showed a further decrease
of $32,000,000 in brokers' loans in this district during the
week ended on Wednesday. This is the twentieth consecutive decline and carries the outstanding total of these loans
down to $531,000,000, the lowest level since Feb. 1 1918,
when the amount was $510,179,000. Call money renewed
at 23/3% on Monday, continued unchanged at that rate
during the balance of the week.
The market moved irregularly lower during the abbreviated
session on Saturday, and while the trading was not particularly heavy, there was considerably profit taking apparent
throughout the session. Some of the leaders moved against
the trend for a brief period, but eventually turned downward with the rest of the list. Practically every group was
3 or more
off on the day, the declines ranging from one to
points. Most of the changes were in the preferred stocks,
though there also was a number of recessions among the
high grade common stocks including such issues as United
States Steel 13/3 points to 44%, Auburn Auto 23/3 points to
145, Homestake Mining 13/3 points to 1203/3, Louisville &
/i points
Nashville 234 points to 273, Norfolk & Western 23
to 1263, Peoples Gas 23 points to 11734, Union Pacifo
JAN. 23 1932.]
FINANCIAL CHRONICLE
2 points to 81%, Air Reduction 1% points to 52%, American
Sugar 2% points to 32, Atchison 1% points to 89%, Consolidated Gas 1% points to 63 and Reading 2 points to 40.
At the close the market was fairly steady with the leaders
slightly above the bottom for the day.
Stocks again moved lower on Monday,the declines ranging
from 2 to 3 points, except in the case of a few of the more
active stocks that registered larger losses. Railroad shares
bore the brunt of the recessions, due to profit taking, as most
of the recent improvement was among the carrier group.
Trading was again slow, the turnover reaching a total of
1,383,440 shares. Around mid-session there was a moderate
rally under the leadership of United States Steel, but this
soon petered out and the market again turned reactionary.
Railroad shares were weak and plunged downward before a
sudden wave of selling, and losses in this group registered
up to 3 or more points as the market closed. The principal
changes on the side of the decline, included among others,
Worthington Pump, 1% points to 21%; Westinghouse,
1% points to 26%; Union Carbide & Carbon, 2 points to
30%;Southern Pacific,25
%;Allied Chemical &
% points to 225
Dye, 2% points to 70; Amer. Tel. & Tel., 2% points to
118/7s; Auburn Auto, 6 points to 129; Delaware & Hudson,
2 points to 79; Eastman Kodak, 2 points to 823/2; IngersollRand, 2% points to 32; Peoples Gas of Chicago, 2% points
to 115, and International Business Machines, 3% points
to 102%. At the close, the market was slightly more
active, but stocks were still heavy, with the market leaders
off froth 1 to 3 points on the day.
Some improvement in prices was apparent in the stock
market on Tuesday, though trading continued dull with the
possible exception of the railroad issues and specialties
which attracted a moderate amount of speculative attention.
The turnover was less than on the preceding day, the total
transactions being approximately 1,100,000 shares for the
day. The final prices were close to the closing level of the
preceding session, though there were some gains here and
there throughout the list, including such active leaders as
Auburn Auto, which surged forward 2% points to 141%,
New Haven, which advanced 2 points to 28; International
Business Machines, which moved ahead 1% points to 104,
and Norfolk & Western, which shot ahead 5% points to
129. The close was unsettled, trading was quiet and most
of the final quotations were at the lowest for the day. The
advances on Wednesday carried many stocks upward from
2 to 3 or more points, and while the railroad shares assumed
the market leadership, practically every group showed substantial gains at the close. The early advances ranged
from fractions to 2 or more points, and while prices sagged
for a short period during mid-session, they again advanced
during the afternoon though the market moved within a
narrow range until the close. The outstanding gains were
United States Steel, 1% points to 453
4; Auburn Auto, 6%
points to 146; Amer. Tel. & Tel., 23
4 points to 121%; Amer.
Tobacco "B",3% points to 78%; Union Pacific, 2% points
to 80%; Southern Pacific, 2% points to 35%; Norfolk &
Western, 23
4 points to 127%; New Haven, 2% points to
30%; New York Central, 1% points to 30%; Eastman
Kodak,3% points to 85%,and Coca Cola,2% points to 112.
All sections of the list displayed renewed strength on
Thursday, United States Steel leading the upward swing
to a new high for the year at 46%, followed by numerous
speculative favorites which showed substantial advances.
Railroad shares made the best group showing, the gains
ranging from fractions to 4 or more points at the close.
The market continued steady until the end, but the final
prices were irregular. The market opened fairly strong on
Friday and for a brief period gave promise of moving briskly
forward. As the session progressed stocks turned reactionary and practically all of the early gains were cancelled.
The volume of sales was somewhat larger than the preceding
day, and while there was some buying support it was not
strong enough to stop the downward drift. Stocks like
New York Central, American Tel. & Tel. and United States
Steel moved downward from 1 to 3 or more points, followed
by most of the popular speculative favorites. The principal
changes on the side of the decline included such active
stooks as Allied Chemical & Dye, 3% points to 69; Air
Reduction, 2% points to 50; American Can, 3% points to
80%; American Tel. & Tel., 3% points to 117%; Atchison,
48% points to 86%; Auburn Auto, 5% points to 140%
Worthington Pump, 3 points to 19%; Western Union Tele5 points
graph, 2% points to 25%; United States Steel, 3%
76;
Norfolk
&
Pacific,
3
points
to
Western,
Union
42%;
to
4 points to 126, and Eastman Kodak, 3% points to 82%
629
The market continued downward -to the close and while
most of the popular stocks were active, the final quotations
were off from 1 to 3 or more points.
TRANSACTIONS AT THE NEW YORK STOCK EXCHANGE
DAILY, WEEKLY AND YEARLY.
Week Ended
Jan.22 1932.
Stocks,
Railroad
State,
Number of and Miscell. Municipal ct
For'n Bonds.
Shares.
Bonds.
Saturday
Monday
Tuesday
Wednesday
Thursday
Friday
TntAl
Sales at
New York Stock
Exchange.
733,315
1,383.440
1,090.025
1,211,715
1,240,168
1,561.404
33,900.000
6.536,500
5.539.500
5.798,000
7.864,000
7,350.000
31.722.000
3,465.000
2.858.000
3,088,000
2,924,000
2,695.000
Total
Bond
Sales,
16.892.000
$1.070.000
4.334,000
2.174,000
1,806.500
1,768,500
1.961,000
14,335.500
10,571.500
10,692.500
12.556,500
12.006.000
7.220.067 836.988.000 316.752.000 313.114.000 S66.954 OM
Week Ended Jan. 22.
Jan. 1 to Jan.22.
1931.
1932.
1931.
9,222,735
27.516,868
31,959.863
$1,758,300
14,122.000
39,082.000
358.170.500
49.936,000
120,262,000
$8,778,000
48,399.000
127,510,000
$66,854,000 $54.962,300
$228,368,500
3184.687,000
1932.
7,220,067
Stocks-No,of shares_
Bonds.
Government bonds-- - $13,114.000
State & foreign bonds- 16,752.000
Railroad & misc. bonds 36,988,000
Total bonds
United
States
Bonds.
DAILY TRANSACTIONS AT THE BOSTON, PHILADELPHIA AND
BALTIMORE EXCHANGES.
Boston.
Week Ended
Jan. 22 1932.
Baltimore.
Philadelphia.
Shares. Bond Sales. Shares. Bond Sales. Shares. Bond Sates,
a16,434
27,270
19,684
23,343
a24,715
4,010
31,000
20,000
13,500
21.500
25,600
329,000
115,456
$81,600
355500
179.110
Saturday
Monday
Tuesday
Wednesday
Thursday
Friday
16,519
26,570
21,107
20,569
23,418
6,285
35,000
Total
114,468
170111
992
5,031
513
709
726
1,149
$4,200
1,000
14,700
20,000
1,000
5,120
$40,900
3257.000
6.840
a In addition, sales of warrants were: Saturday, 100: Thursday, 10.
$13.500
Pray lair ravftwd
2,000
3,000
8,000
11,000
THE CURB EXCHANGE.
Prices on the Curb Exchange this week were somewhat
easier in an extremely dull market. Fluctuations even in
the usually active issues were narrow. Among utility issues
Electric Bond & Share, corn. dropped about a point to 11%,
recovered to 12% and moved downward again to 11%. The
close to-day was at 11%. The $6 pref. eased off from 60%
to 58 and the $5 pref. from 50% to 49%. The latter sold
back to 50% and at 50 finally. Amer. Gas & Elec., corn.
sold down from 38% to 35% and closed to-day at 36. Amer.
Superpower, 1st pref. improved from 58 to 60 but reacted
finally to 59. Commonwealth-Edison was off from 118 to
4 then sagged to 114, the close to-day
116, recovered to 1193
was at 115. Eastern Utilities Associates, corn. fell from
4. Illinois Power &
25 to 22% and finished finally at 223
Light,$6 pref. advanced from 51 to 61. Nor.Power & Light,
$6 pref. sold up from 69% to 72, and reacted finally to 70.
Oklahoma Gas & Elec., 7% pref. on few transactions was
off from 96 to 89%. Oils were the steadiest. Buckeye Pipe
Line improved from 34 to 35. Eureka Pipe Line advanced
from 23 to 28 and Northern Pipe Line from 32% to 34.
Standard Oil (Neb.) dropped from 18% to 15%, Gulf Oil
lost a point to 29, recovered to 30% and to-day dropped to
29%. Among industrial and miscellaneous issues Aluminum
Co.,corn. dropped from 61% to 52% and closed to-day at 53.
The 6% pref. eased off at first from 65% to 643
4,sold up to
673
4 and reacted finally to 65. Amer. Cigar Co., corn, was
conspicuous for an advance of 15 points to 130, though it
eased off finally to 125. Deere & Co., corn. moved down
irregularly from 14% to 11. Mead-Johnson & Co. was off
from 54 to 51 and Singer Mfg. from 134 to 127. The latter
sold finally at 127%. A. 0. Smith Corp., corn. on few
4 to 44 and sold finally at 45.
transactions broke from 543
A complete record of Curb Exchange transactions for the
week will be found on page 658.
DAILY TRANSACTIONS AT THE NEW YORK CURB EXCHANGE.
Week Ended
Jan. 22 1932.
Saturday
Monday
Tuesday
Wednesday
Thursday
Friday
Total
Sales at
New York Curb
Exchange.
Stocks
(Number
of
Shares).
Bonds (Par Value).
Total.
137,115 $1,605,000
200,130 2,350,000
159,316 2,282,000
206,980 2,292,000
219,160 2,530.000
244.330 2,449,000
385.000
274,000
69.000
95,000
94.000
69,000
$171,000 51,861.000
198.000 2,822,000
179,000 2,530.000
52, 00 2,439,000
89.000 2,713,000
287.000 2,805,000
1,167,031 $13,508.000
$686,000
$976.000 $15,170.000
Week Ended Jan. 22.
1932.
1931.
Stooks-No,of shares_
1,167,031
2,186,600
Bonds.
Domestic
$13,508,000 $16,961,000
Foreing Government_ _
686,000
600,000
Foreign Corporate976,000
706,000
Total
Foreign
Corporate.
Foreign
Domestic. Government
$15,17'1,000 $18,267,000
Jan. 1 to Jan. 22.
1932.
1931.
4,164,353
7.094,800
$44,299.000
1,843,000
2,173,000
$57,710,000
2,191,000
2,417,000
148,315.000
$62,318.000
630
[VOL. 134.
FINANCIAL CHRONICLE
ENGLISH FINANCIAL MARKET-PER CABLE.
THE ENGLISH GOLD AND SILVER MARKETS.
We reprint the following from the weekly circular of
Samuel Montagu & Co. of London, written under date of
Jan. 6 1932:
GOLD.
The Bank of England gold reserve against notes amounted to E120,746.477
on the 30th ult, as compared with £120,719,456 on the previous Wednesday.
The S.S. "Maloja" which left Bombay on Saturday last has on board
about £1,900,000 of bar gold.
Small arrivals from Rhodesia and elsewhere have been available in the
open market and have been disposed of for shipment to the Continent.
Quotations during the week:
Per Fine
Ounce.
Equivalent Value
of £ Sterling.
Dec. 31 1931
13.s 11.2d.
121s. lid.
Jan. 1 1932
14s. 1.1d.
120s. 7d.
Jan. 2 1932
145. 0.0d.
1215. 4d.
135. 10.94.
Jan. 4 1932
1225. 2d.
13s. 10.54.
Jan. 5 1932
122s. 5d.
13s. 10.1d.
Jan. 6 1932
122s. 9d.
Average
13s. 11.34.
121s. 10.34.
The following were the United Kingdom imports and exports of gold
registered from mid-day on Dec.28 1931, to mid-day on the 4th inst.:
Imports.
Exports.
British South Africa_ __ _ £1,261,810
British India
4,288,349
France
75.503
British West Africa
53.650
Netherlands
82.476
Straits Settlements Sz Dependencies
47,990
U. S. A
19,800
Other countries
21,607
France
N etherlands
U. S. A
Switzerland
Austria
Other countries
£1.369,584
170.200
314,786
16.920
12.570
14,734
£1,898,794
£5,851,185
SILVER.
The market continued quiet over the turn of the year. but prices have
shown improvement.
Developments in the political situation in India have tended to restrict
business with that quarter and China has shown little interest in the market.
The steadiness has been due to small Continental support on a poorly
supplied market, although America has shown a disposition to offer moderately in the afternoons.
To-day, after a fall of ;id. due to offerings by India and China and the
absence of buyers, quotations are 20 3-16d. for both deliveries.
The following were the United Kingdom imports and exports of sliver
registered from mid-day on Dec. 28 1931 to mid-day on the 4th inst.:
Imports.
Exports.
£33.878 British India
16.039 Germany
25.169 Other countries
Mexico
Belgium
Other countries
£10,910
7,450
4.439
£22,799
£75,086
Quotations during the week:
IN NEW YORK.
IN LONDON.
(Cents per Fine Ounce, .999.)
Bar Silver per Oz., Standard (Delivery)
Cash.
2 Mos.
3044
Dec.31 1931...20 3-164. 20 3-I60. Dec. 30 1931
Jan. 1 1932.___20 3-16d. 203-16d. Dec. 31 1931
3054
Jan. 2 1932 __ __20 5-164. 20 5-16d. Jan. 1 1932
Holiday.
20/d.
Jan. 2 1932
Jan. 4 1932____2044d.
3054
Jan. 5 1932_20 7-16d. 207-164. Jan. 4 1932
3054
Jan. 6 1932_ _ _ _20 3-164. 20 3-16d. Jan. 5 1932
30%
Average
20.2814.
20.281d.
The highest rate of exchange recorded on New York durin the period
from Dec. 31 1931 to Jan. 6 1932 was $3.42 and the lowest 53.35.
INDIAN CURRENCY RETURNS.
Der. 31 Dec. 22. Dec. 15.
(in Lacs of Ruppees)Notes in circulation
17930
17329
17086
Gold coin and bullion in India
456
3456
456
Securities (Indian Government)
4925
4336
3983
Bills of exchange
250
100
Silver coin and bullion in India
12437
12647
The stocks in Shanghai on the 5th inst. consisted of about 55,650.000
ounces in sycee, 168.000.000 dollars and 3.660 silver bars, as compared
with about 53,600.000 ounces in sycee, 165.000,000 dollars and 5,560 silver
bars on Dec. 24 1931.
as reported by cable, have been as follows the past week:
Thurs.,
Fri..
Tues.,
Wed.,
Mon.,
Sat.,
Jan. 16. Jan. 18. Jan. 19. Jan. 20. Jan. 21. Jan. 22.
19340.
18 15-tad. 19 1-16d. 18 15-16d. 1930.
Silver, per oz__ 19340.
1198.5d. 119s.8d.
120s.
120s.
Gold, p.fine oz.
553,4
553-4
55
553(
Consols, 2.54%_ 5534
5534
9834
9844
98
British 5%____
9734
973-4
9434
9434
943-4
9434
British 414%
9434
French Rentes
(In Paris)
79.30
79.70
79.20
78.80
78.80
French War L'n
(in Paris)102.10
102.50
102.50
102.40
102.10
The price of silver in New York on the same days has been:
Silver in N. Y.,
2934
2934
2934
2954
2934
per oz. (CI,.) 3054
PRICES ON BERLIN STOCK EXCHANGE.
The Berlin Stock Exchange is closed.
New York quotations for German and other foreign unlisted dollar bonds as of Jan. 22:
Bid.
Asked.
21
28
Anhalt 7s to 1945
25
30
Bavaria 630 to 1945
2834
3134
Brandenburg Electric 6%. 1953
38
41
British Hungarian Bk. 7345, 1962
18
Dortmund Municipal Util. 634%, 1948
2434
4
8
2
:(1
:%
8
2
1_i
.
East Prussian Power 6%, 1953
38
European Mortgage & Investment 734s, 1966
98%
100
French Government 5348, 1937
84
French National Mall S. S. Line 6%, 1952
38
German Atlantic Cable 7%, 1945
---31
German Building & Landbank 614%, 1948
32
Hamburg-American Line 534s. 1935
22
& Realty Imp. 78, 1946
23%
26%
Hungarian Central Mutual 7s, 1937
22
25
Hungarian Discount & Exchange Bank 7s, 1963
60
Hungarian Italian Bank 734 V., 1932
31
Koholyt 630. 1943
57
3336
334
Leipzig Overland Power 634%. 1946
22
25
Leipzig Trade Fair 7s, 1953
35
Marmhein & Palatinate 7s, 1941
"O.28
Munich 78, to 1945
25
22
Municipal Bank Hessen 7% to 1945
25
30
Nassau Landbank 614%. 1938
30
34
Oberpfalz Electric 7%, 1946
26
24
Pomerania Electric 6%. 1953
24
29
ProteLant Church (Germany) 734s, 1946
30
25
Provincial Bank of Westphalia 6%, 1933
43
47
Rhine Westphalia Electric 7%, 1936
40
Roman Catholic Church 614%o. 1948
34
OF"
Roman Catholic Church Welfare 7% 1946
35
45
Saarbruecken Mortgage Bank 65. 1947
26
29
Saxon State Mortgage 8%. 1947
290
320
Siemens & Halske debentures 6%, 2930
26
Stettin Public Utilities 7%, 1946
23
17
Tucuman City 7s. 1951
31
UnitedIndustrial ti%. 1945
iii-30
Wurtemberg 75 to 1945
7.40Housing
_
COURSE OF BANK CLEARINGS.
Bank clearings this week will again show a decrease as
compared with a year ago. Preliminary figures compiled
by us, based upon telegraphic advices from the chief cities
of the country, indicate that for the week ended to-day
(Saturday, Jan. 23), bank exchanges for all the cities of
the United States from which it is possible to obtain weekly
returns will be 28.2% below those for the corresponding
PRICES ON PARIS BOURSE.
Quotations of representative stocks on the Paris Bourse
as received by cable each day of the past week have been
as follows:
Jan. 16 Jan. 18 Jan. 19 Jan. 20 Jan. 21 Jan. 22
1932.
1932.
1932.
1932.
1932.
1932,
Francs. Francs. Francs. Francs. Francs. Francs.
11,600 11,500 12,200 11,800 12,000
Bank of France
129
120
105
Bank Nationale de Credit
105
1,260
1,250
1.310
Banque de Paris et Pays Bas
1,270
1-.566
400
395
360
350
Banque de Union Parlsienne
383
370
425
Canadian Pacific
401
-ioi
13,525 13,375 13,795 13.690
Canal de Suez
2,380 2,300 2,380 2,380
Cie Distr d'Electricltie
2,270
2,230
2,300
Cie General d'Electricitie
2,330
520
521
530
522
Citroen B
1,220
1,220
1,180
1,170
Comptolr Nationale d'EscomPte
1,220
370
350
350
380
Coty. Inc
390
431
430
410
429
Courrieres
700
675
700
700
Credit Commerciale de France
4,720
4,670
4,660
4,610
Credit Foncier de France
4.non
1,750
1,730
1,790
1,760
1,790
Credit Lyonnais
2,340
2,400
2,360
2,300
2,390
Distribution d'Electricitie is Par
2,130
2,150
2,200
2,170
2,190
Eaux Lyonnais
665
660
Energie Elearlque du Nord-655
625
---1.010
1,015
1,025
982
Energle Electrique On Littoral
97
French Line
102
95
--iii
107
93
Gales Lafayette
93
90
94
BOLT95
Gas Le Bon
750
DAY
760
760
780
800
Kuhlmann
380
350
380
370
380
L'Air Llquide
630
680
640
680
730
Lyon (P. L. M.)
1,267
1,260
1,260
1,280
Mines de Courtieres
410420
420
-;OO
440
Mines des Lens
450
440
420
450
Nord RY
1,750
1,750
1,770
1,800
1,710
Paris, France
1,200
1,280
1,280
1,290
1,270
Pathe Capital
103
99
100
100
Pechiney
1,290 1,230 1.320 1,280 1.5.
Reines 3%
79.20
79.30
78.80
78.80
79.70
Rentes 5% 1920
125.00 125.10 125.30 125.70 126.10
Relates 4% 1917
97.00 97.20
97.40 97.40 97.70
Rentes 5% 1915
102.10 102.50 102.60 102.40 102.10
Rentes 6% 1920
102.90 103.50 103.80 103.80 103.40
Royal Dutch
1,2.50
1,230
1,280
1,260
1,270
Saint Cobin, C. dr C
2,235
2,030
2,080
2,080
Schneider & Cie
1,270
1,225
1,275
1,270
Societe Andre Citroen
520
530
52049Societ
General Fonciere
205
189
-lie
203
195
123
Societe Frani:ales Ford
120
125
128
123
Societe Lyonnais
2,165
2,105
2,185
2.180
Societe Marsellialse
682
670
668
660
Buss
13,500 13,400 14,300 13,600 13-,185
164
Tubize Artificial Silk prof
138
155
146
890
Union d'Electridtle870
920
-950
327
327
Union dee Mines
-5ii327
Wagon-Llts
111
119
120
-109
The daily closing quotations for securities, dm., at London,
25
week last year.
Our preliminary total stands at $5,633,-
680,357, against $7,847,041,510 for the same week in 1930.
At this center there is a loss for the five days ended Friday
Our comparative summary for the week follows:
of 28.6%.
Per
Clearings-Returns by Telegraph.
Week Ended Jan. 23.
New York
Chicago
Philadelphia
Boston
Kansas City
St. Louis
San Francisco
Los Angeles
Pittsburgh
Detroit
Cleveland
Baltimore
New Orleans
Twelve cities, five days
1931.
52,927,519,041
54,096,717.708
-28.6
203.833,173
238.000,000
215.000.000
62,204,753
82,700,000
97,319,000
341,919,256
319,000,000
278,000,000
91,853,318
-40.4
-25.4
-22.6
-32.3
-30.5
-18.0
Total all cities, five days
Mtn' oil Mile. fnp mealr
90,200,000
118,649,000
No longer will re port clearings.
76.651,387
63,611.603
80,740.008
52,049,678
32,552,991
121,004,099
118,357,107
86,746.835
61,321,590
44,609,815
-36.7
--46.5
-20.8
-15.1
-27.0
$4,092,181,632
55,768,378.628
716,213,530
-14.6
$4,694,733,631
938,946.726
$6,484,592,158
-27.6
1,362,449,352
-13.1
ass 56(1517
57 847 041.510
-28.2
602.551,999
Other cities, five days
All cities, one day
Cans.
1932.
11
-29.1
Complete and exact details for the week covered by the
foregoing will appear in our issue of next week. We cannot
furnish them to-day, inasmuch as the week ends to-day
(Saturday) and the Saturday figures will not be available
until noon to-day. Accordingly, in the above the last day
of the week has to be in all cases estimated.
we
In the elaborate detailed statement, however, which
present further below, we are able to give final and complete
For
that week there is a decrease of 25.5%, the aggregate of
clearings for the whole country being $6,466,542,868, against
$8,676,715,534 in the same week of 1930. Outside of this
city there is a decrease of 29.4%, the bank clearings at this
-the week ended Jan. 16.
results for the week previous
FINANCIAL CHRONICLE
JAN. 23 1932.1
center recording a loss of 23.2%. We group the cit'es now
according to the Federal Reserve Districts in which they
are located, and from this it appears that in the New York
Reserve District, including this city, there is a loss of 23.1%,
in the Boston Reserve District of 28.5% and in the Philadelphia Reserve District of 16.0%. In the Cleveland Reserve District the totals are smaller by 31.1%, in the Richmond Reserve District by 39.3% and in the Atlanta Reserve
District by 21.3%. In the Chicago Reserve District the
totals record a contraction of 40.9%, in the St. Louis(Reserve District of 30.2% and in the Minneapolis Reserve District of 22.6%. The Kansas City Reserve District shows a
diminution of 35.1%, the Dallas Reserve District of 19.4%
and the San Francisco Reserve District of 24.1%.
In the following we furnish a summary of Federal Reserve
districts:
SUMMARY OF BANK CLEARINGS.
1932.
1931.
Inc.or
Dec.
Federal Reserve Dists.
lst Boston- - - -12 cities
2nd New York.12 "
3rd Philauel la_10 "
4th il-leve1and.- 8 "
5th Richmond - 6 "
6th A tlanta__ __11 "
7111 Chicago __-20 "
8th St. Louis.- 7 "
9th Minneapolis 7 "
10th KansasCity 10 "
11th Dallas
5 "
12th San Fran 14 "
$
$
%
316,429,361
442,320,091 -28.5
4,349,390,526 5,655,298,502 -23.1
352,481,881
419,686.437 -16.0
248,947,053
381,629,174 -31.1
91504,551
153,964.506 -39.3
112.826,201
143,371,742 -21.3
717,677,302 -40.9
423,997,319
111,622,399
159,810,067 -30.2
100,152963 -22.6
77,524,011
114,433,437
176,372818 -35.1
44,869,158
55.690,143 -19.4
220,510,969
290,741,789 -24.1
Total
122 cities
Outside N. Y. City
8.466,542,868
2.234,317,132
Canada
32 cltlea
237.615.692
1930.
1929.
$
$
607,704,062
802,056,923
7,209,936,927 9,355,801,702
676,222,355
682,433,215
422,175,933
461,823,359
182133,154
174,664,536
189,508,236
182,628,508
875,328454 1,197,652,430
207,683,976
226,199,549
113,337,119
130,744,187
203,787,125
215,519,922
72,650,899
89,900,664
367,417,122
389,724,513
8,676,715,534 -25.5 11,131,485,062 13,689,209,498
3,165,618.650 -29.4 4.125,771,009 4,517,148,454
299.561.651 -20.7
414.997.919
496459 07S
We now add our detailed statement, showing last week's
figures for each city separately, for the four years:
Week Ended Jan, 16.
Clearings at1932.
1931.
Inc. or
Dec.
8
First Federal Reserve Dist rict-Boston
Me.-Bangor__
452,698
662,304 --31.6
Portland
2.833,387
3.534.679 --19.8
Mass.-Boston _ 276,174,588 391.334,275 --29.4
Fall River_ _ _
864,305
1.104.984 --21.8
Lowell
288,850
641,642 --55.0
New Bedford_ _
925.945
1.082,466 --14.5
Springfield_ 3,615,402
5,091,544 --29.0
Worcester
2.881.526
3.048,679 --5.5
Conn.- Hartford
8,891,356
12.155,206 --26.9
New Haven_ _
7,019,651
8.491.001 --17.3
R.I.-Providence
11,881,900
14,556.500 --18.4
N.H.-Manchea'r
599.753
616.811 --2.8
Total(12 cities)
316,429,361
442,320,091 -28.5
Second Feder al Reserve D IstrIct-New
N. Y.-Albany_ _
6,005,626
7,176.344
Binghamton_ -791.974
1,142,419
Buffalo
31.931,299
41,879,498
Elmira
740,506
1.032,319
Jamestown_ -658.990
1,126,407
New York._ _ _ 4,232,225,736 5,511,096,884
Rochester
8.510.771
9.977,46
Syracuse
5,006.079
5.406,301
Conn.-Stamford
3,344,811
3,500,924
N. J.--Montclair
525,500
729,725
Newark
25,562,276
32,112,736
Northern N. J.
34,086.958
40.057,476
1930.
1929.
598,989
3,746.545
543,960,036
1,283.068
1.361.877
1,410,625
5,312.777
3,825.635
15,726.418
10,412,257
19,279,300
786.535
631,380
3,635.980
529,000,000
1,823,655
1,359,796
1,402,086
5,963,457
4,073,446
23,874 018
11,066.778
18,559.400
666,927
607,704.062
602,056,923
York
-16.3
7,145,323
6,603.889
--30.8
1,455,479
1,531,576
--23.8
53,418,838
64.646.516
-31.6
1,800.751
1,245,075
--41.5
1,278,752
1,452,206
-23.2 7.005.714,053 9,172.081,044
--14.7
14.884,716
18,452,475
5.305.344
7,167.293
-4.5
4,120,105
4,854.690
-28.0
748,927
1,260,229
-20.4
38.843.529
30.342,631
-14.9
75.421.110
46,179.078
Total(12 cities) 4,349,390,526 5.655.298,502 -23.1 7,209,936,927 9,355,801,702
Third Federal Reserve Dist rict-Phliad
Pa.-Altoona__ _
554,799
1.315,113
Bethlehem_ _ _
2,609.400
3.640.371
Chester
517,000
1,000,000
Lancaster
1,309,802
1,521,050
Philadelphia_ _ 332.000.000 394,000.000
Reading
2,584,087
3.214,098
Scranton
3,563.996
4,541.511
Wilkes-Barre_ _
2.363,933
3.832,184
1,496,864
York
.. _
2,020,110
N.J.-Trenton__
5,482,000
4.593,000
elphia
--57.8
--28.3
--48.3
--13.9
--15.7
--19.6
--21.5
--38.3
--26.2
--19.4
1,664,434
4,865,657
1,340.214
1.828.019
647,000.000
4,022.438
4.977,186
3,833,589
2,101,818
5,189,000
1,650,018
4,647.234
1,336.079
1,693,117
630,000,000
5,154,866
6,618,149
4,607,642
2,077,107
4,649,003
419,686,437 -16.0
876,822,355
862,433,215
Fourth Feder al Reserve 13 !strict- Clev eland
Ohio-Akron _ _ _
d316,000
4,208,000 -92.5
Canton
3.632.496
Cincinnati
49.060,921
67.236,000 --27.0
Cleveland
80,954,394 115.021,000 --21.8
Columbus
12,946,100
14,966,800 --13.5
Mansfield
1,611,207
Youngstown -4,468,171
Pa.-Pittsburgh _
96.669,638 150.485,500 -35.8
5,288.000
4,948,133
70,955,606
146,076,151
17,140,500
2,108.623
5,551,475
170,109,445
6373.000
4,256,736
81,051,064
150,436,416
17,447,300
2,228,870
6.357,923
193,572,050
Total(10 cities)
Total(8 olties)_
352,481,881
248,947.053
381,629,174 -31.1
422,175.933
461,823,359
Fifth Federal Reserve List rice- Richm ondW.Va.-IIunt'g'n
442,330
952,078 -53.5
2.811,674
4,212,691 -33.3
Riehmond
_
29,187,943
37,203,000 -21.5
S.C.-Charleston
933,740
2,046.031 -54.4
Md.-Baltimore
66,513,831
84.117,280 -20.9
D.C.-Washing'n
22,802,978
25,433,426 -10.3
1,241,404
4.789,701
49.161.000
2,241,983
100,013,236
27,685,830
1.233,934
4,281,585
37.714.000
2,054.614
99,616,460
29,763,933
93,504,553
153,964,506 -39.3
185,133,154
174,664,526
Sixth Federal Reserve Dis trict-Atlan us3,455,324
Tenn.-Knoxville
2,500,000 -38.2
Nashville
11,215,128
18,074.420 -37.9
Oa.-Atlanta__
33,400,000
40,530,343 -17.6
Augusta
1,186,963
1,494,001 -20.5
Macon
543,969
840,041 -35.2
Fla.-Jack'nville.
11,251.359
13,865,063 -18.9
AIL-Birming'm.
13,262,864
16,014,293 -17.2
1,120.513
Mobile
1,545.400
27.5
1,274.000
Miss.-Jackson_
2,267,000 -43.8
160,139
Vicksburg
207,925 -23.0
La.-NewOrleans
35.955,942
46,033.258 -21.9
3,746,185
22.867,884
51,175,115
2,175.851
1.739,358
16,448,399
25,829,933
2,117.170
2.148,753
256,533
61,003,055
3,785,000
23,205,609
48.649.424
1,722,025
1,706,137
15,275,342
21,684,718
1,490.099
2,120.000
469.540
62,520.614
189.508,236
182,628.508
Total(6 cities)-
Total(11 cities)
112.826,201
143,371,742 -21.8
Week Ended Jan. 16.
Clearings at1932.
1931.
Inc. or
Dec.
1930.
1929.
5
Seventh Feder al Reserve D Istrict-Chi cagoMich.-Adrian..
181,762
242,475 --18.3
272,579
337,650
Ann Arbor---764.726
738,000 +3.6
922,862
872,945
82,738.116 139,170,338 -40.5 181,830.256 263.389.616
Detroit
4,791,345
Grand Rapids.
6,755.248 --29.1
7,135,958
10.867.700
1.826,400
Lansing
3.407.814 --46.4
4,194,300
3.229,432
1,274,995
Ind.-Ft, Wayne
2,732.604 --53.3
3,865,400
3,519.954
14,374,000
20,131.000 --28.6
Indianapolis
25,520,000
27.013.000
1,405.790
South Bend.._
2,142.698 --34.4
2,795.956
3,494.100
3,925,948
Terre Haute_ 5,014,094 -.21.7
5,243.951
5.006,466
19,449,355
Wis.-Milwaukee
26,670,190 --27.1
32,086.495
34.604.552
Iowa-Cod. Rap.
776.630
2,940,283 --73.6
2.917,951
2,964,659
5,149,498
DesMoines...
7,289,290 --29.4
9,820,861
9.577.968
3,330.471
Sioux City
6,744,811
4,372,596 --23.8
7,629.369
495,468
940,165 --47.3
1,771,118
Waterloo
1,828,178
1,165.984
Ill.-Bloomington
1.640.464 --28.9
1,858,051
1,922.634
275,503,898 483,313,295 --43.0 574,829,904 806.893.209
Chicago
812,583
1,079.242 --24.7
1,272.549
Decatur
1,524.569
2,986,020
3.963,431 --24.7
5,865,013
Peoria
6.384,285
1,084.420
2,575,016 --27.8
3.536.354
Rockford
3,691,967
1,959,910
2,579,059 --24.0
2,843.285
2.900.177
Springfield.-Total (20 cities)
Week Ended Jan. 18 1932
631
423,997,319
717,677,302 -40.9
Eighth Federa (Reserve Dis trict-St. Lo
3,864.321
v2,000,000
Ind.-Evansville,
73,100.000 111,800.000
Mo.-St. Louis
29.759.024
23,292,059
Ky.-Loulsville_ 12,474.371
13.654038
Tenn.-Memphis
157,342
125,647
111.- Jacksonville
836,322
575.372
Quincy
111,628,399
875.328.154 1,197,652,430
U1S-48.3
--34.6
--21.7
-8.6
--20.1
+10.6
4,513.880
133,000.000
44,360,746
24,286,634
328,498
1.194.218
5,535,103
159.200.000
38.235,642
21,498,895
300.000
1,429.909
159,810,067 -30.2
207,683,976
226,199.549
Ninth Federal Reserve Dis tr ict-Minn eapolis4,669,907
4,146.871 -44.6
Minn.-Duluth.
52,499,007
67,712,470 -22.6
77.569,185
Minneapolis.
21,510,234 -17.5
17,751.309
24,460,261
St. Paul
1.883.348
2,230,324
N. Dak.-Fargo2,081.724 -9.5
997,371 -38.2
1.041.100
S.D.-Aberdeen616.275
582,342
467,074
680,296 -31.3
Mont.-Billings
2,008,414
2,778,000
3,023.997 -33.6
Helena
6,478,709
83,581,391
32,829.266
2,055,886
1.355,071
928,064
3,516.000
To al(7 cities)-
100.152,963 -22.6
113,337.119
130,744,187
Tenth Federal Reserve Dis trict- Kens as City
173,418
253,044 -31.5
Neb.-Fremont _
477.279 -64.1
171.296
Hastings
3,379,214 -27.5
2,450,335
Lincoln
40.400,622 -34.9
Omaha
26,304,604
Kan.-Topeka
3,406,232 -35.1
2,206.703
5,055,556
7,643,671 -33.9
Wichita
72,485,766 111,962,655 -35.3
Mo.-Kans. City
3.782,233
6,395,262 -40.9
St. Joseph_ _
Colo.-Colo.Spgs
852,343
967.002 -11.9
Denver
a
a
a
951,183
1,487,837 -36.1
Pueblo
335,301
564,308
3,667.303
43,882,614
3,429.735
7,903.438
132.928,031
8,117.157
1,180,985
a
1,778,253
419,824
689.332
4,852,150
44,453.267
3,929,088
8,606.035
141,892,854
7.867.459
1,229,068
a
1,580,845
178,372,818 -35.1
Total(7 cities)-
Total(10 cities)
77,524,011
114,433,437
203.787,125
215.519,922
las---25.4
--18.0
--24.4
--5.7
--29.7
1.488,181
47,324.702
12,763.906
4,614.00
6,460.110
2,254.385
60,489.976
14,207.075
6,342,000
6,607.228
55.690,143 -19.4
72.650.899
89.900.664
Eleventh Fede ral Reserve District-Da
Texas-Austin
1,091,794
1,464,213
31,588,648
Dallas
38,527.572
Fort Worth_ 6,107.110
8.074.989
Galveston
2,838,000
3,010.000
La.-Shreveport_
4,613,369
3,243,606
Total (5 cities)-
44,869,158
Twelfth Feder al Reserve 0 strict-San Franci sco-Wash.-Seattle..
27,986.992
42,403,534
36,978.754 -24.3
7,432.000
10.604.000 -29.9
Spokane
11,891.000
564.931
Yakima
1.463.067
1,016.078 -44.4
20,424,557
Ore.-Portland_ _
35,815,829
29.429.947 -30.6
13,125.085
16,683.591 -21.3
Utah-S. L. City
23,337,367
4,090,283
Calif.-1:g Beach
7.393,453 -66.0
8.666.930
No longer wil I report dead flea.
Los Angeles4,874.604
6,480.672 -24.8
Pasadena
6,625,038
9.974.071
Sacramento.._
6.959,225 +43.3
7.209,328
San Diego....
4,249.738
6,118.140 -30.5
6,730,758
San Francisco_ 121,270.554 159,413.654 -23.9 212.199.343
San Jose
2,197,615
3,264,128 -32.7
3.669,453
1,432,136
Santa Barbara_
2,281.64
2,335,619 -38.6
Swats, Monies.
1.256.770
2.117.684
2,072.130 -39.3
Stockton
1.631.633
1,987.400 -17.9
3.001,100
Total(14 cities)
220.510,969
290,741.789 -24.1
367,417,122
54.536,413
12,877.000
1,421.767
38,342.762
20,981,093
9,688,104
7,879,031
7.704.165
7.284.247
217,577.722
3,343,108
2.229,097
3,034.604
2.885,400
389.784,513
Grand total (122
cities)
6 466,542,868 8,676,715,534 -25.5 11131 485,062 13689 209,498
Outside New York 2,234,317.132 3,165,618,650 -29.4 4,125,771,009 4,517,148,454
Week Ended January 14.
Clearings at1932.
1931.
Inc. or
Dec.
1930.
1929.
CanadaMontreal
Toronto
Winnipeg
Vancouver
Ottawa
Quebec
Halifax
Hamilton
Calgary
St. John
Victoria
London
Edmonton
Regina
Brandon
Lethbridge
Saskatoon
Moose Jaw
Brantford
Forst William.-New Westmin-ster
Medicine Hat_._
Peterborough_
Sherbrooke
Kitchener
Windsor
Prince Albert_ --Moncton
Kingston
Chatham
Sarnia
Sudbury
$
75.664,140
72,386,799
30,114,120
12,177,020
4,542,208
4,067,066
2,461.762
4.030,994
4,381,529
2,222.407
1,419.188
2,353,862
4,313,517
4,030,729
293.405
289,820
3,256,762
473,917
794,938
440,936
458,151
174,741
536,496
618,492
812.840
2,362,924
296,177
751,277
514,811
451,951
379,535
563,178
%
i
109,684,033 -31.0
93,905,379 -22.9
29,090,660 +3.5
14,187,671 -76.2
5,303,674 -14.4
5,122,937 -20.6
2,635,746 -6.6
4,453,300 -9.6
8,435,068 -31.9
2,040,443 +8.9
1,943,807 -27.0
3,015.930 -21.9
4,139.533 +4.2
3,227.458 +24.9
423,298 -30.7
385,190 -24.7
1,599,043 +103.7
755,225 -37.2
917.029 -13.3
601,608 -26.7
665,055 -31.1
197,932 -11.7
759,402 -29.4
602,779 +2.6
899,080 -9.6
2,896,618 -18.4
333,15 -11.1
695,598 +8.0
698,32 -26.3
651,74 -30.7
539,450 -29.6
755,50 -25.5
$
161,909,556
126,436,780
41,091,877
19,195,382
7,245.048
6,815.448
3,099,505
5,612.049
9,108,868
2,200,673
2.542,977
3,061,403
5,301,642
3,894,585
478,941
485,810
2,001.900
941.366
1,035,466
788,307
803,094
321,359
675,000
816,249
1,265,272
4,531,426
394.359
886,507
773,868
694,966
608,236
$
161.912.199
156,078,315
49,631,905
22,939.639
9,275,945
7,019.166
3,784,105
5,836,456
17,174,113
2.664,138
2,083,752
3,261.939
8.034,149
5.072,183
532,480
694,698
2,074,370
1,254,588
1.152.811
934,397
874.774
507,069
982,726
896,951
1,531.955
5,708,838
428,139
858.868
865.819
791,567
632,028
Total(32 cities)
237,635,892
299,561,651 -20.7
414,997,919
475,490.075
• Estimated. a No longer reports weekly clearings. b Remaining
banks ax•
changing checks direct, no clearings figures available. c Three brim banks
closed.
clearing house not functioning. d Figures smaller due to merger
of two largest
banks a Clearing house discontinued.
632
[VoL. 134.
FINANCIAL CHRONICLE
gommerciaiand Wiscellatteonsnews
BREADSTUFFS
(Concluded from page 70
.
1.)
than ever. But, on the other hand, the cash demand is still
small at Chicago, as prices east of that market cut under
4 to %c., but
Chicago. On the 16th inst. prices declined 1/
soon rallied sharply with wheat and closed 1% to 24c.
higher. Covering was general in an oversold market. Some
stop orders on the short side were uncovered as the market
advanced. The country sold 100,000 bushels to arrive,
but this had no effect. On the 18th inst. prices advanced
4c. in response
1
% to 13c3c. net, though at one time up % to 1/
to the rise in wheat. At another it was % to %c. net lower.
Cash corn was still quiet. Country offerings were small,
but the demand was poor and the weather was better.
Larger receipts are expected.
On the 19th inst. prices closed % to 11 c. lower, following
wheat as usual. The weather was mild, and there was
less feeding demand. The country sold 40,000 bushels to
arrive. Shipping demand was poor, only 6,000 bushels were
sold. The trading was largely local. On the 20th inst. prices
closed % to %c. higher after being %c. lower early, with
wheat. Purchases to arrive were 70,000 bushels, and shipping
sales 17,000. Commission houses bought rather freely of
May at around 41c. On the 21st inst. prices ended % to %c.
lower after being % to %c. higher. The shipments from
Argentina this week were estimated at 4,331,000 bushels, but
neither this nor the dry weather in the Province of Buenos
Aires had any effect. Country offerings were still small,
but cash corn remained dull and that took the edge off any
bullish factors.
To-day prices ended % to %c. lower. The weather was
in the main good, though the forecast was unsettled. Cash
corn was still dull, and the basis was lower. Purchases to
arrive at Chicago were small. Nebraska offered a little
more freely. Final prices shower a rise for the week of
% to 1%c.
DAILY CLOSING PRICES OF CORN IN NEW YORK.
Sat. Mon. Tues. Wed. Thurs. Fri.
53% 52% 51%
53
53% 54
rib. 2 yellow
DAILY CLOSING PRICES OF CORN FUTURES IN CHICAGO.
Thurs. Fri.
Wed.
Tues.
Sat. Mon.
39
403( 39
40
38(
March
41
414 41
42$
4
41
41%
May
42%
42
43% 43
43% 43
July
44
44
4334 4434 44
43%
September
Season's Low and When MadeSeason's High and When MadeOct. 5 1931
3434
Nov. 9 1931 March
5134
March
Oct. 5 1931
36
Nov. 9 1931 May
53%
May
Oct. 7 1931
Nov. 9 1931 July
3834
55
July
4134
Jan. 15 1932
Jan. 18 1932 September
453
September
DAILY CLOSING PRICES OF RYE FUTURES IN CHICAGO.
Sat. Mon. Tues. Wed. Thurs. Fri.
4534 45$ ---4714 46
46
March
47
47
4831 47R 4734 47
May
47
47
48
49% 47
July
48
4811
---48
50
September
48
Season's Low and When MadeSeason's High and When bladeSept. 3 1931
38
March
Nov. 9 1931 March
62
Oct. 5 1931
3831
May
63
Nov. 9 1931 May
Dec. 10 1931
4134
Nov. 9 1931 July
July
6334
Jan. 16 1932
4734
Jan. 18 1932 September
September
5034
Closing quotations were as follows:
GRAIN.
Oats. New YorkWheat, New York37%038
No. 2 white
No. 2 red, c.i.f., new
7534
3634@37
No. 3 white
Manitoba No.1.f.o.b. N.Y.. 7834
61
Rye No. 2, f.o.b. bond
52
Chicago, No. 2
Corn, New YorkNo. 2 yellow, all rail
5134 BarleyNo. 3 yellow, all rail
No.2,L.8z R.,N.Y.,com_ 56%
5034
42(4158
Chicago. cash
FLOUR.
Spring pat. high protein $4.70 $5.05 Rye flour patents
Spring patents
4.65 Seminole. bbl.. Noe. 1-2
4.40
Clears first spring
4.50 Oats goods
4.15
Soft winter straights
3.65 Corn our
3.35
Hard winter straights
4.10 Barley goodse
3.75
Coarse
Hard winter patents
4.65
4.15
Fancy pearl, Nos. 2.
Hard winter clears
4.10
3.50
4 and 7
Fancy Minn. patents._ 5.30
6.00
City mills
6.00
5.30
4.2511;4.75
6.55
5.65
1.95
1.90
1.55
1.50
3.20(4 ---6.15@ 6.50
Breadstuffs figures brought from page 701.-All
the statements below regarding the movement of grainreceipts, exports, visible supply, &c.-are prepared by us
from figures collected by the New York Produce Exchange.
First we give the receipts at Western lake aid river ports
for the week ending last Saturday and since Aug. 1 for
each of the last three years:
Flour. I
Receipts al-
Wheat. I
Corn.
Oats.
I Barley. I
Rye.
bbls.1961bs. bush.60lbIbush.56 lbs. bush.32 las.lbush.481bs. bush.56l8s.
8,000
56,000
276.000
72.0003 1.050,000
142,000
Chicago
45,000
148,000
661.000;
Minneapolis.
9,000
2:0001
54,000,
Duluth
12,000 102,000
118,000
27,000,
8,000
Milwaukee1,000
3,000
113,000
58,0001
212,000'
Toledo
12.000
26,000
24,000
10,000
35,000j
Detroit
2,000
200.000
251,000
59,000,
Indianapolis_ 52,000
192.000
249,000
420,000j
138,000
St. Louis._ _ _
41,000
37,000
212,000
22,000,
47,000
Peoria
52,000
137.000
8,000 1,281.000,
Kansas City....
2,000
aii.000' 115,000
Omaha
35,000
41,000
17,000'
St. Joseph_
2,000
2,000
326,000'
Wichita
5,000
11,000,
70,000
63,0001
Sioux CRYTot.week'32
Same week '31
Same week '30
Since Aug.1
1
1930
1929
518:0 0000
:6
204
001 4
:m
60
70,
3:5
343,0001 6
385,
381,000 4,124,0001 6,202,000
947,000,
1,399,000,
1.458,000
433,000
517,000
615,000
77,000
164,000
111,000
1
10,780,000 200,078.0001 64,842,000 39,893.000 21,006,000 4,056,000
10,662,000 259.981,000 99,309,000 68,314,000 34,382,000 15.428,000
,10,896.000258.397,000127,725,000 84,378,00048,746,000 19,716,000
OATS have been in the main firm, without much moveTotal receipts of flour and grain at the seaboard ports for
ment of prices. But the receipts are light. Oats of good the week ending Saturday, Jan. 16 1932, follows:
quality are reported to be in sharp demand. On the 16th inst
Rye.
Oats. I Barley.
Wheal. I Corn.
prices declined % to %c. early, but later fell into line with Receipts at- Flour.
corn and rallied % to lc. from the low, closing %c. net
bels.196lbs.8,33.60 lbs.1514.15. 56 lbs. bush.32 lbs.lbush.485bs. bush.661bs.
24.000
44,000;
12,008
higher in small trading. The South sold early. On the 18th New York.,.. 177,000 124,006,
191,000,
Portland, Me.
3
Inst. prices closed unchanged after being %c. higher at one Philadelphia__
10,0001
24,000
2,000
Loop
e,000
time and % to %c. lower at another. Roughly, oats followed Baltimore.._.,..
12,000
38.000,
11.0003
80,000
the movement of corn prices. On the 19th inst. prices closed Mobile
36,000
18,000
93,0001
61,0003
•
Orleans
New
24c. lower on some selling by commission houses in a slow Galveston.
9,000
7,13130
5,000'
4c. Boston
1
20.008
market. On the 20th inst. prices closed unchanged to /
60,000
Houston
3
lower, the latter on March. The cash demand was said Halifax
04,000
24,000
5,
13.01301
19.000,
80,000,
to be better, with stocks at Eastern Lake ports pretty well St.John, N.B. 32.
disposed of.
89,000
14.000;
125,000
66.000
706.000
333,000,
Total wk.193
On the 21st inst. prices ended unchanged to %c. higher, Since Jan.1'3 905,000 1.647,000; 199.000 285.000 22.000. 484.000
regardless of the decline in other grain. The independent Week 1931...... 310,000 1,685,000
17.008
15.000
41.000j
27,0001
33,000
51,000
strength of oats excited some comment. To-day prices ended Since Jan.1'31 1,019,000 2,961,000
193,000
141,0001
1/0.lower in slim trading. Cash oats, however, were steady.
* Receipts do not include grain passing through New Orleans for foreign ports
on through bills of lading.
Futures closed unchanged to %c. higher than a week ago.
DAILY CLOSING PRICES OF OATS IN NEW YORK.
The exports from the several seaboard ports for the week
Thurs,
Tues.
Fri.
Wed.
Mon.
Sat.
ending Saturday, Jan. 16 1932, are shown in the annexed
No. 2 white373j-3834 3734-3834 3734-3834 3734-3834 3734-3834 3734-3834
statement:
CLOSING PRICES OF OATS FUTURES IN CHICAGO.
DAILY
Sat. Mon. Tues. Wed. Thurs. Fri.
2531 2534 2534 2534
Exports fromMarch
2634 2634 263's 2631 263.1 26
May
2534 2534 2534 2534 2534 2534
July
New York
Season's Low and When MadeSeason's High and When MadeOct. 6 1931 Portland. Me
2334
Nov. 10 1931 March
March
31
Boston
Oct. 5 1931
23
Nov. 10 1931 May
May
3134
Oct. 5 1931 Philadelphia
2234
Nov. 10 1931 July
July
3131
Baltimore
IN
WINNIPEG. Mobile
DAILY CLOSING PRICES OF OATS FUTURES
New Orleans
Sat. Mon. Tues. Wed. Thurs. Frt.
3234 3331 3234 3234 3234 3274 Galveston
May
July
3234 3334 3234 3234 3234 3234 St. John, N. B
liouston
RYE.-The sore point is still the absence of export busi- Halifax
Wheal.
Corn.
Bushels. Bushels.
454,000
191.000
Flour.
Oats.
Rye.
Barley.
barrels. Bushels. Bushels. Bushels.
29,911
5,000
5,000
28.000
16,000
80,000
1.000
80,000
60,000
24,000
1,000
14,000
4,000
32,000
5.000
13.000
13,000
19,000
64,000
13.000
64,000
37,000
ness. Rye is governed solely by the price movements of
90,911
934,000
Total week 1932__
17,000
17,000
10,990
8,000 101,879
Same week 1931__ 2,548.000
wheat. Under the circumstances, rye shows an advance.
On the 16th inst. prices were % to %c. lower in the earlier
since
and
week
the
for
exports
these
of
The destination
trading but later rallied 1% to 2c., and this was practically July L 1931 is as below:
the net
'rise of the day, although the trading was local.
Corn.
There was no sign of an export business. All the grain
Wheat.
MUT.
markets seemed to be short, and a wave of bullishness swept Exports for Week
Since
Week
Since
Week
Week
Week
and
Since
July 1
them upward. On the 18th inst. prices closed % to ly4e.
Jan. 16
July 1
Jan. 16
Jan. 16 July 1
July 1 to1931.
1932.
1931.
1932.
1931.
1932.
higher, taking its tone from wheat. The Northwest, however,
sold on the advance. On the 19th inst. prices closed 13
Bushels. Bushels. Bushels,
Bushels.
Barrels. Barrels.
17,000
27,815,000
to 1%c. lower, in answer to the decline In wheat. On the United Kingdom_ 44,000 1,788,992 136,000 61,620,000
6.000
571,000
1,266,128
19,000
Continent
March
20th inst. prices ended %c. off to %c. higher, with
7.000
6,534,000
191,000
184,453
2,000
So.dr Cent.Amer_
33,000
104,000
8,000
lower,
270,914
the weakest. On the 21st inst. prices closed 'h to Y4c.
7,000
West Indies
962
--Brit.No.Am.Colsunclosed
following the trend of wheat. To-day prices
28,000 2,227,000
156,582
17,00,5
Other countries
changed to %c. lower, in sympathy with wheat. There was
63,000
98,300,000
934,000
3,668,031
90,911
1932
prices
Total
Yet
no export demand. That certainly is a damper.
133,000
8,000
101.879 7,281,631 2,548,000 121.639,000
Total 1931
ended 1% to 1%c. higher than a week ago.
JAN. 23 1932.]
FINANCIAL CHRONICLE
The visible supply of grain, comprising the stocks in
granary at principal points of accumulation at lake and
seaboard ports Saturday, Jan. 16 1932, were as follows:
United State.
New York
Boston
Philadelphia
Baltimore
Newport News
New Orleans
Galveston
Fort Worth
Buffalo
" afloat
Toledo
" afloat
Detroit
Chicago
" afloat
Milwaukee
Duluth
Minneapolis
Sioux City
St. Louis
Kansas City
Wichita
Hutchinson
St. Joseph, Mo
Peoria
Indianapolis
Omaha
GRAIN STOCKS.
Wheal,
Corn,
Oats,
bush.
bush.
bush.
3,197.000
1,000
70,000
1,580
7.000
2.532.000
75,000
53,000
6,585,000
66.000
24,000
415,000
2,998.000
97,000
86,000
4,229.000
6.781,000
154,000
526,000
18,100.000 2,718,000 1,040.000
6.778,000
235,000
738,000
4,058,000
154,000
319.000
190,000
583.000
315.000
30,000
68,000
21,514,000 6,095.000 2,633,000
840.000
280,000
6.179.000
183,000
438,000
18,912.000
117,000 2,086,000
30,901.000
15.000 3,595,000
1,457.000
9,000
108,000
6.324,000
816.000
602.000
30,782,000
93.000
88.000
1,913,000
5,810,000
4.000
6,456.000
48,000
354.000
65,000
3,000
821.000
1.419.000 1,240,000
889,000
18,205.000
75,000
565,000
Rye,
bush.
17,000
1,000
6,000
32,000
Barley,
bush.
13,000
3,000
382,000
20.000
432,000
9,000
5,000
4.000
2,000
32.000
62,000
2,061,000
239,000
1,160,000
209.000
460,000
1,665,000
359.000
3,720.000 2,217,000
1,000
21,000
7,000
3,000
55.000
157,000
8,973,000 4,399,000
8,852,000 4,463,000
10,511,000 23,199,000
9,372,000 4,020,000
8,973,000 4,399,000
The world's shipment of wheat and corn, as furnished by
Broomhall to the New York Produce Exchange,for the week
ending Friday, Jan. 15 1932, and since July 1 1931 and
1930.
Reports.
North AmerBlack Sea...
Argentina...
Australia ___
India
0th. countr's
Total
Week
Jan. 15
1932.
Corn.
Since
July 1
1931.
Since
July 1
1930.
Week
Jan. 15
1932.
Since
July 1
1931.
I
Since
July 1
1930.
I
Bushels.
Bushels.
Bushels.
Bushels. 1 Bushels,
Bushels,
5,036,000187,024.000223,399,000
22,000, 1.614,000 1,019,000
1,760,000101,248,000 82,542,011 1,046.000 12,415,000
24,358,000
2,754,000 44,703.000, 27.772,00' 4,941,000 2
53,365,000134,092,000
6,520,000 63,375,000 45,768,111
600,00111 8,920,111
576,00 21,352.000 27.936,000
01
153.000 14,740,000 33,467,000
I
16,646.00 418,302.000416.337.008,162.00
0282,134,000192.936.000
National Banks.-The following information regardin
g
national banks is from the office of the Comptrol
ler of the
Currency, Treasury Department:
CFIARTERS ISSUED.
Capital.
9-First National Bank in Callicoon.
Callicoon, N. Y.... $100.000
President, Chas. P. Kautz; Cashier
W. L. Dodge.
J. 14-The American National Bank of Creighton,
Nob
25,000
President, Wid L. Turner: Cashier, J.
0. Peck.
VOLUNTARY LIQUIDATIONS.
Jan. 11-The First National Bank of Fairfield. Ill
$50.000
Effective Jan. 6 1932. Lig. Comm., B. F.
B. It. Meeks and L. A. Blackburn.. care of the Thomas,
Iiquidat.
ing bank. Absorbed by the Fairfield National
Bank,
Fairfield, Ill., No. 6,609.
Jan. 11-The First National Bank of Commerce. Okla
25,000
Effective Dec. 31 1931. Lk). Agent, IS. W.
Commerce. Okla. Succeeded by First State Wyatt,
Bank of
Commerce. Okla,
Jan. 12-The First National Bank of Rockaway, N. J
100.000
Effective Dec. 30 1931. Lig. Comm., Clarence
L.
Millard, Edwin J. Matthews and Joseph It. Jackson,
care of the liquidating bank. Succeeded by First
National Bank in Rockaway, No. 13.574.
Jan. 13-The Georgetown National Bank. Georgetown, Mass
50.000
Effective Jan. 12 1932. Lig. Comm., Board of Directors of the liquidating bank. The liquidating bank
has
no SUCCOSSor.
Jan, 15-The First National Bank of Tremont. Ill
80.000
Effective Jan. 12 1932. Litt. Comm..Frank M. Hellomann, J. P. Blumenschein and Frank 0. Sharp, all of
Tremont, Ill. Succeeded by the First National Bank
in Tremont, No. 13.579.
Jan.
Auction Sales.-Among other securities, the following,
not actually dealt in at the Stock Exchange, were sold at auction
in New York, Boston, Philadelphia and Buffalo on Wednesday of this week:
By Adrian H. Muller & Son, New York:
Shares. Stocks.
per Sh. Shares. Stocks.
$ per Sh.
318 New Jersey Nat. Bank &
Par 310: 100 Boulder Consol. Gold
Trust Co. of Newark
11
& Silver Mining Co • par 510:
200 The Engineer Co. class A._..$12 lot
60 Nicaragua Co.; 4 Valley Fair
$4 lot
200 The Engineer Co. class B
Ae.sn., Inc., par $25; 117 Indianap.
1 Phila. Mtge.& Tr. Co.; 4 HessDecatur & West. fly. Co.; $2,030
Pees Corp., corn., par 850;
Ind. Decatur & West. RS
,
. Co..
4 Hess-Ives Corp., pref., par $50:
reorg. W. of dep. for inc. mtge.
1 Franklin Institute of the State
bonds: 85,000 Ind. Decatur &
of Pa. for the Promotion of MeWait. fly. Co., reorg. ctf. of del).
chanical Art, first class stock-SO lot
for 26 mtge. bonds; $50
Ind•
Decatur & West. fly. Co. fract.
9 Bellows Falls Country Club, Inc..
par $25; 4 Hooper Golf Club of
scrip: $800 Ind. Decatur & West.
Walpole, N. H., par 825: 7,225
fly. Co., inc. mtge. ctf. dep, of
Allied hfInes, par 810: 301 Amer.
fractional scrip
112 lot
Consol. Gold & Silver Mining Co.,
Shares. Stocks.
$ per 11/.
1
10 Eastern Mfg. Co., common....
8 American Screw Co
25
10 Thomas 0. Plant Co., 1st pref
750
2 Libbey. MoNell & Libby. 1st Pt- 75
10 Balton Insurance Co
280
5 Sanford Putnam Co.; 25 Taylor
Logan Co. Papermakers, $7
preferred
$115 lot
Shares. Stocks.
$ per Sh.
100 Irving Tr. Co., N. Y., par $10- 19%
8 Ludlow Mfg. Associates
55%
4 units Flat Peoples Trust
10
6 units First Peoples Trust
9%
20 Fall River Elec. Lt. Co.,Par $25. 23
Shares. Stocks.
A Per Bk.
27 Quincy Market Cold Storage &
Warehouse Co., pref
25
30 units First Peoples Trust
10
10 Quincy Market Cold Storage &
Warehouse Co., pref
25-25%
By Barnes & Lofland, Philadelphia:
Shares. Stocks.
5 per Sh. Shares. Stocks.
A per SA.
35 Central-Penn Nat.Bank, par $10 35
20 John B.Stetson Co.,corn., no par 1234
128 Pa. Co. for Ins. on Lives. &c..
par $10
4134
Bonds.
Per Cent.
30 13th & 15th St. Pass. fly
69
$1,000 Penn Mary Coal Co. 1st
we u.S. Loan Society. common 9
81180, 88, 1939
9334
By Baker, Simonds & Co., Detroit, on Friday, Jan. 8:
Total Jan, 16 1932_270,067,000 12,508,000 22,407,000
18,345,000 8.419.000
Total Jan. 9 1932_272,426.000 12.261,000 22,105,000 18,273,000
8,524,000
Total Jan, 17 1931...252,191,000 16,358,000 33,539,000 25,805,000
34,239,000
Wheat.
By R. L. Day & Co., Boston:
Shares. Stocks.
A per Sh.
100 Atlantic Nat. Bank, par 525- 15
10 First Nat. Bank, Haverhill
80
10 Davol Mills
lq
3special units First Peoples Trust
2
3 units Mutual Finance Corp
54
50 S. Bornstein, Inc
$25 lot
10 Towle Mfg. Co
50
5 Greenfield Tap & Die Co.,8% pf_ 15
5 Eastern Mfg. Co.. Prat
7
By Wise, Hobbs & Arnold, Boston:
12,000
26,000
Total Jan. 16 1932___208.535,000 12,508,000 15,688,000
Total Jan. 9 1932___211,146,000 12,261,000 15,576,000 9,372,000 4,020,000
Total Jan. 17 1931_189,766,000 16,358,000 26,814,000 9,421,000 4,061,000
15,294,000 11,030,000
Note.-Donded grain not included above: Oats, New York,
2,000 bushels against 254,000 in 1931. Barley, New York, 2,000 bushels; total
York afloat, 63,000; Buffalo, 101,000; Buffalo afloat, 465,000; 1,000 bushels, New
Duluth, 3.000: total,
633.000 bushels, against 1,321.000 bushels in 1931. Wheat, New
bushels: New York afloat, 4,829,000; Buffalo, 4.036,000: Buffalo York, 1,607,000
afloat, 12,378.000;
Duluth, 1,000; Toledo afloat, 340,000: total. 23,191,000
bushels, against 23,867,000
bushels in 1931.
CanadianMontreal
3,722,000
1,725,000 1,208,000 1,142,000
Ft. William & Pt. Arthur 48,921,000
2,760,000 7,653,000 2,701,000
" afloat
71,000
114,000
Other Canadian
8.818,000
2,120,000
112,000
556,000
Total Jan. 16 1932
61,532,000
6,719,000
Total Jan. 9 1932... 61,280,000
6,529,000
Total Jan, 17 1931... 62,425,000
6,725,000
SummaryAmerican
208,535,000 12,508,000 15,688,000
Canadian
61,532,000
6,719,000
633
Bonds.
Per Cent,
$1,000 Royal Oak (City) sanitary
sewer 43413
50
$1,000 Metropolitan Trust Co., 1st
mtge. coll. 65, series B
50
$10,000 Berkley (Village) tax-anticipinion 6% notes due 1931
22
$10,000 Monroe Paper Products Co.
1st mtge. L. 11. 65. 1940
29
Bonds.
Per Cent.
$1,000 Halfway Sewer Dist., No.6
514s, 1930
50
$10,000 Dearborn-Van Born Co.
2d mtge. 6345, 1930
$500 lot
$10,000 Wortley Land Co.26 mtge.
610, 1930
$500 lot
$2,000 Union Trust 2d mtge. 61,68.
1947
72 & int.
By A. J. Wright & Co., Buffalo:
Shares. Stocks.
10 Como Mines, par $1
10 Korect Air Meter, pref
$ per Sh.iShares. Stocks.
I per Sh.
5c 5 Angel Internatlon Corp., par $1.... 22e
100
DIVIDENDS.
Dividends are grouped in two separate tables. In the
first we bring together all the dividends announced the
current week. Then we follow with a second table, in.
which we show the dividends previously announced, but
which have not yet been paid.
The dividends announced this week are:
Name of Company.
Railroads (Steam).
North Carolina
United N. J. RR. dr Canal (guar.)
Virginian Hy., pref. (guar.)
Per
When
Cent. Payable.
Books Closed.
Days Inclusive.
•354 Feb. 1 *Holders of rec. Jan. 20
.
244 Apr. 10 *Holders of rec. Mar.21
*1% Feb. 1 *Holders of roe. Jan. 16
Public Utilities.
American Commonwealths PowerClass A & B-Dividends omitted.
First and second preferred A-Dividen Is oml tted.
$6.50 and $6 first preferred-Dividend omitt ed.
Binghamton Gas Works, pref.(guar.)
•134 Feb. 2 *Holders of rec. Doe. 21
California Water Service, pref.(cjuar.)._ 10134 Feb. 15 *Holders of rec. Jan. 30
Canadian Hydro Elec. Co.. let pf.(qu)- 11% Mar. 1 Holders of rec. Feb.
Cedar Rapids Mtg. & Power (quar.).... *75e Feb. 15 *Holders of rec. Jan. 31
Central Power & Light, 7% pref.(guar.) •144 Feb. 1 *Holders of rec. Jan. 15
8% preferred (guar.)
•144 Feb. 1 'Holders of rec. Jan. 15
City Water of Chattanooga, pref.(011.).. •1% Feb. 1 *Holders of rec. Jan. 20
Columbus fly. Pr. & Light. pref. B (qu.) •1.63 Feb. 1 *Holders of rec. Jan. 15
Connecticut fly.& Ltg., corn.& pf.(au.) •114 Feb. 15 *Holders of rec. Jan. 30
Dallas Power & Light, 7% pref.(MO14 Feb. 1 Holders of rec. Jan. 21
$6 preferred (quar.)
$1.50 Feb. 1 Holders of rec. Jan. 21
Dallas fly. & Terminal, pref.(ausr.)
*14 Feb. 1 *Holders of rec. Jan. 21
Empire District Electric, pref.(mthly.)50c.Mar. 1 Holders of rec. Feb. 15
Fall River Gas Works(qaar.)
*754 Feb. 1 *Holders of rec. Jan. 22
Federal Electric Co.. $7 prof.(quar.) '
51.75 Feb. 1 *Holders of rec. Jan. 22
$6 preferred (quar.)
*51.50 Feb. 1 *Holders of rec. Jan. 22
7% preferred (quar.)
*134 Feb. 1 *Holders of rec. Jan. 22
Gas & Elec. Scour. Co., corn.(mthly.)-.
50c Feb. 1 Holders of rec. Jan. 15a
Corn.(payable in corn. stk.)(mthly.)
134 Feb. 1 Holders of rec. Jan. 154
Preferred (monthly)
58 1-3e Feb. 1 Holders of rec. Jan. 154
Gas Securities Co., common (monthly)._
p14 Feb. 1 Holders of rec. Jan. 15a
Preferred (monthly)
50c Feb. 1 Holders of rec. Jan. 154
Haverhill Electric (guar.)
*88e Jan. 7 *Holders of rec. Jan. 6
Houston Light & Pow.. 7% prof.(qui
•1% Feb. 1 *Holders of rec. Jan. 15
58 preferred (guar.)
'E1.50 Feb. 1 *Holders of
Jan. 15
Illuminating & Power Secur., corn.(qu.) $1.75 Feb. 10 Holders of rec.
rec. Jan. 30
Preferred (quar.)
134 Feb. 1 Holders of rec. Jan. 30
Kansas Utilities, 7% pref.(quar.)
'134 Jan.
*Holders of rec. Dee. 21
Kentucky Utilities. Junior pref. (quar.). *8740 Feb. 20 *Holders of rec.
Feb. 2
Keystone Telephone of Phila., $4 pf.(qu) 311
Mar.
*fielders of rec. Feb. 19
Kokomo Water Works,6% pref.(quar.) *I% Feb.
*Holders of rec. Jan. 20
Long Island Lighting, corn.(quar.)
15c. Feb.
Holders of rec. Jan. 27
Malone Light & Power.$6 pref.(au.). *51.50 Feb.
*Holders of rec. Jan. 15
ichigan Gas & El. 7% pr. lien (guar.). •134 Feb.
*Holders of rec. Jan. 15
$6 prior lien (quar.)
*Holders of rec. Jan. 15
•$1.50 Feb.
6% preferred (quar,)
1.1% Feb.
*Holders of rec. Jan. 15
$6 preferred (quar.)
*Holders of rec. Jan. 15
•$1.50 Feb.
hill. Elec. fly. & Lt.(1921) pf.(quar.).. •1% Mar.
*Holders of rec. Feb. 15
Minneapolis Gas Light, 7% pref.(qu.)- •13( Mar. *Holders of rec. Feb.
20
6% preferred (quar.)
•134 Mar.
*Holders of roe. Feb. 20
Mississippi Pr. & Lt.. let pref.(quar.)_ _ •81.50 Feb.
'Holders of rec.
15
Monmouth Consol. Water, pref.(qu.).- *1% Feb. 1 *Holders of rec. Jan.
Feb. 1
National Power de Light, coin. (quar.)
*25c. Mar.
*Holders of rec. Feb. 6
New Brunswick L. It. & Pow., pf.(au.). *2% Jan.
*Holders of rec. Dec. 21
N.J.& Ilud.
Ry. & Ferr. prof.... *3
Feb.
*Holders of rec. Jan. 30
New York Steam Co.,corn.(guar.)
*65c. Mar.
*Holders of rec. Feb. 15
North American Co., corn.(in coat. stk ) 12% Apr.
Holders of rec. Mar. 5
Preferred (quar.)
75c. Apr.
Holders of rec. Mar. 6
North Amer. Edison Co., pref.(qu.)-$1.50 Mar.
Holders of rec. Feb. 15
Ohio Public Service. 7% pref.(quar.)-5 8 1-3c. Mar.
Holders of rec. Feb. 15
6% preferred (guar.)
50c. Mar.
Holders of rec. Feb. 15
5% Preferred (quar.)
4 1 2-3c. Mar.
Holders of rec. Feb. 15
Ohio River Hy.& Power,7% pt.(qu.). •134 Jan.
*Holders of rec. Dec. 30
Pacific Power & Light, 7% prof.(1:111
134 Feb.
Holders of roe. Jan. 18
.)-$6 preferred (quar.)
1% Feb.
Holders of rec. Jan. 18
Portland Gas & Coke. 7% pref.(qu.)
1% Feb.
Holders of rec. Jan. 18
6% preferred (quar.)
1% Feb.
Holders of rec. Jan. 18
Princeton(N.J.) Water (guar.)
*754. Feb.
*Holders of rec. Jan. 20
Pub. Serv. Co. of Colo. 7%
pf.(mthly.)5 8 1-30. Mar.
Holders
of rec. Feb. 15a
6% preferred (monthly)
50c. Mar.
Holders of rec. Feb. 15a
5% preferred (monthly)
4 1 2-3c. Mar.
Holders of rec. Feb. 15a
Public Serv. Corp. of N.J., tom.
•85c. Mar.3 *Holders of rec. Mar.
8% preferred (guar.)
1
*2
Mar.3 *Holders of rec.
1
7% Preferred (quar.)
*1% Mar.) *Holders of rec. Mar.
Mar.
$5 preferred (guar.)
•$1.25 Mar.3 *Holders of rec. Mar. 1
6% preferred (monthly)
*50c. Feb. 2 *Holders of rec. Feb. 1
6% preferred (monthly)
*50c. Mar.3 *Holders of rec. Mar. 1
1
Sierra Pacific Elec. Co., corn.
*50e. Feb.
*Holders of rec. Jan. 20
Preferred (quar.)
•134 Feb.
*Holders of rec. Jan. 20
Southern Colorado Power, corn. A.(0u.)
50c. Feb. 25 Holders of rec. Jan.
Tampa Electric Co.,corn.(1111.)
*56c. Feb. 15 *Holders of rec. Jan. 30
25
Preferred A (quar.)
•134 Feb.
United Telep.(Del.) $7 2nd pref.(qu.)... $1.75 Feb. 15 *Holders of rec. Jan. 25
1 *Holders of rec. Jan.
Washington Gas Light, corn.(quar.).... *90c
Feb. 1 *Holders of rec. Jan. 20
23
[voL. 134.
FINANCIAL CHRONICLE
634
Name of Company.
Per
When
Cent. Payable
Books Closed.
Days Inclusive.
Name of Company.
When
Per
Cent. Payable.
Books Closed.
Days Inclusive.
MIocellaneous (Concluded).
Lazarus (F. Jr R.) Co., pref. (quar.)____ •1% Feb. 1 Holders of rec. Jan. 21
Lenolt National Securities, cons. A S. B, and p ref.-D vidend action deterred.
1% Feb. 1 Holders of rem Jan. 21
Lerner Stores Corp., pref. (guar.)
Liggett & Myers TobaccoMar. 1 Holders of rec. Feb. 15
$1
common
B
&
Common
(guar.)
Trust Companies.
Mar, 1 Holders of rec. Feb. 15
$1
Common and common B (extra)_ _
Feb. 1 *Holders of rec. Jan. 25
*20
Rings County (Brooklyn) (guar.)
50c. Feb. 1 Holders of rec. Jan. 26
Lincoln Printing, COM. (guar.)
87 He Feb. I Holders of me. Jan. 26
(guar.)
Preferred
Fire Insurance.
$1.625 Feb. 15 Holders of rec. Jan. 30
Loew's, Inc., $634 pref. (guar.)
*20a. Jan. 25 *Holders of rec. Jan. 21
National Liberty
1% Mar, 1 Holders of rec. Feb. 15
Lord & Taylor, lot pref. (guar.)
•25c. Mar. 10 *Holders of roe. Feb. 29
North River (guar.)
1% Feb. 15 Holders of rm. Feb. 16
_
(guar.)
pref.
Refining,
011
Louisiana
21
Jan.
rec.
*50c. Feb. 1 *Holders of
Westchester (guar.)
Feb. 1 *Holders of rec. Jan. 19
.1
Luther Mtg. (guar.)
*50c. Feb. 15 *Holders of rec. Feb. 5
Lynch Corporation (guar.)
Miscellaneous.
4.1M Feb. 1 *Holders of rem Jan. 16
(guar.)
pref.
Hat,
Mallory
30
Jan.
314 Feb. 10 Holders of rec.
Acme Farmers Dairy. pref
Feb. 1 *Holders of rem Jan. 13
.$2
Manchester Cotton Mills (guar.)
sj.5.‘ Jan. 15 *Holders of rec. Dec. 29
Alms & Doepke, pref. (guar.)
Marine Bancorp., initial stock (quar.)-. •25c. Feb. 1 *Holders of rec. Jan. 20
Jan. 15 *Holders of.rem Dec. 31
American Art Works, Inc.,6% pfd.(qu.)
Feb. 1 *Holders of rec. Jan. 20
*25c.
(guar.)
Full
participating
*1% Jan. 23 *Holders of rm. Jan. 19
American Book (guar.)
•25c Feb. 15 *Holders of rem Jan. 31
May Radio & Telivision (guar.)
50c. Feb. 1 Holders of rec. Jan. 29
si
Amer. Credit Indemnity (guar.)
Jan. 15 *Holders of rec. Jan. 8
Marble,
pref.
McNeel
(guar.)
Amer. Elec. Securities. com.-Dividend oraltte d.
'134 Feb. 1 *Holders of rec. Jan. 25
Meletio Sea Food, pref. (guar.)
*25c. Feb. 1 *Holders of rec. Jan. 25
Preferred (bi-monthly)
Mickelberry's Food Products, com.(qtr.) *15c. Feb. 15 *Holders of rec. Feb. 1
Mar. 1 *Holders of roe. Feb. 25
American Envelope. 7% prof. (quar.)- - .1
Apr. 1 *Holders of rec Mar. 21
*87/4c
(guar.)
Preferred
25
May
rec.
of
•1% June 1 *Holders
7% preferred (guar.)
Midland Grocery Co.-Dividend ornate d.
Sept. 1 *Holders of rem Aug. 25
7% preferred (guar.)
Feb. 1 *Holders of rec. Jan. 13
*2
Milstead Mfg. (calm%)
Nov. 25
rem
of
*Holden;
1
Dec.
•1%
7% Preferred (guar.)
Minneapolis-Honeywell Regulator•35c. Mar. 1 *Holders of rem Feb. 13
American Home Products(monthly)_
Feb. 15 *Holders of rec. Feb. 4
•75c.
Common (guar.)
Jan. 2
Amer. Indemnity (Phila.) 7% pfd. (qu.) *43%0 Jan. 20 *Holders of rm. Jan. 31
*75c. May 14 *Holders of rem MAY 4
Common (guar.)
*75c. Feb. 15 *Holders of rec.
Amer. Investors, Inc., $3 pref.(quar.)
Apr. 1 *Holders of rec. Mar. 19
A
•1
Preferred
15
(guar.)
Jan
.
e4c Jan. 15 *Holders of rec.
American Securities Shares
25c. Jan. 30 Holders of rec. Jan. 21
Missouri Portland Cement, corn.(qu.)...
50c. Apr. 1 Holders of rec. Mar. 15
American Storm, common (guar.)
Jan. 1 *Holders of rec. Jan. 1
•S2
(guar.)._
IL)
Moore
Dry
(Wm.
Goods
19
Dec.
roe.
of
*Holders
4
*$1.50 Jan.
Amoskeag Co., corn
Morris Plan Bank (Bridgeport) (quar.)_ •75c. Jan. 15 *Holders of rec. Jan. 14
*$2.25 Jan. 4 *Holders of rec. Dec. 19
Preferred
Feb. 1 *Holders of rec. Jan. 25
Morris Plan Co.(R. I.) (guar.)
•12 Feb. 1 *Holders of roe. Jan. 27
Art Metal Works, corn. (in corn.stock)
Nairn
14
(Michael) & Greenwich, Ltd..Jan.
rec
of
•1 A Jan. 15 *Holders
Atlantic Macaroni (guar-)
Jan. 26 *Holders of rec. Jan. 13
*re7A
for
refs,
ordinary mg
Amer. dep.
Jan. 15 *Holders of rem Jan. 13
Atlantic Safe Deposit (N. Y.)(guar.)._ *2
'Mc. Apr. 15 *Holders of rec. Mar. 18
National Biscuit, corn. (guar.)
750. Mar. 1 *Holders of rec. Feb. 20
Atlas Utilities, $3 pref. A (guar.)
Feb. 29 'Holders of me. Feb. 11
'134
20
Preferred
(guar.)
May
rec.
of
750. June 1 *Holders
$3 preferred class A (guar.)
6234e. Feb. 1 Holders of rec. Jan. 15
Nat. Investment Shams, Inc., prof
Feb. 8 Holders of rec. Feb. 1
$1
Automatic Voting Mach., pr. partic_
•1% Mar, 15 *Holders of rec. Feb. 26
A
pref.
1
(guar.)
National
Lead,
Feb.
rec.
of
Holders
8
Feb.
.
Prior participating stock (in scrip)
*1215c Feb. 15 'Holders of rem Feb. 1
National Refining, corn. (guar.)
rec. Feb. 1
IF Prior participating stock (in scrip).-- 0150. Feb. 8 Holders of
•871ic Feb. 1 *Holders of rec. Jan. 25
National Sash Weight, pref. (quar.)
of rec. Feb. 15
Bamberger (L.) & Co.,6% pref.(qu.) 114 Mar. 1 Holders
*7c. Feb. 1 *Holders of rec. Jan. 15
B
ser.
Mts.
Tr.
1
Nation
Feb.
Wide
Sec.
rec.
of
Holders
1
Feb.
5
134
Baumann (Ludwig) dr Co.. 1st pref. (qu.
Feb. 15 Holders of rem Feb. 1
2
Neptune Meter, pref. (guar.)
4.1% Feb. 15 *Holders of rm. Jan. 30
Beacon Mfg., corn. & pref. (guar.)
May 15 Holders of rem May 1
2
•i% Feb. 1 *Holders of rm. Jan. 20
Preferred (mar.)
Berland Shoe Stores, 7% pref. (quar.)2
Aug. 15 Holders of roe. Aug. 1
(guar.)
Preferred
Betco Corp.. pref.-Dividend omitted.
Nov. 15 Holders of rm. Nov. 1
2
Preferred (guar.)
B-G Sandwich Shops, pref.-Dividend P eased.
25e. Feb. 1 Holders of rec. Jan. 26
corn, (guar.)
23
New
Jan.
Co.,
Process
•1
rec.
of
*Holders
1
Feb.
(qu.)
pt.
Rug,
34
Bigelow-Sanford Carpet &
1 Holders of rec. Jan. 26
Feb.
134
1
(guar.)
Feb.
roe.
Preferred
of
*Holders
•50c. Feb. 15
Blamer's, Inc.. COM. (guar.)
10c. Feb. 1 Holders of rec. Jan. 23
Noma Electric Co., corn. (guar.)
*75e, Feb. 15 *Holders of roe. Feb. 1
Preferred (quer.)
*Mc. Mar, 1 *Holders of rec. Feb. 15
(quar.)_
Warren
Northam
pref.
10
rem
Corp.,
Feb.
of
*Holders
16
Feb.
*3714c
_
_
Block Bros. Tobacco, com. (guar.)._
No British Royalty Tr. Sho., A (mthly.) *10c. Jan. 15 *Holders of rec. Dec. 15
•37 Ac May 15 *Holders of rec. May 10
Common (guar.)
Ontario Steel Products. cons.-Dividend omitt ed
•371Sc Aug. 15 *Holders of rec. Aug. 10
Common (guar.)
1% Feb. 15 Holders of rec. Jan. 30
10
rec.
of
Nov.
Preferred (guar.)
*Holders
15
Nov.
•3734c
Common (guar.)
250. Feb. 15 Holders c1 rm. Jan. 29
24
Mar.
rec.
Oppenheins,Collins&Co.,Inc..com.(au.).
Mar.31 *Holders of
Preferred (guar.)
Jan. 15 *Holde,a of roe. Jen. 7
•1%
•1 34 June 30 *Holders of rec. June 24
Orchard Farm Pie Co., class A (guar.).
Preferred (guar-)
.20c. Feb. 1 *Holders of rec. Jan. 20
24
Pacific Clay Products (guar.)
Sept.
rem
of
*Holders
30
Sept.
Preferred (guar.)
Feb. 15 *Holders of rec. Feb. 6
550c.
(guar.)
Rent
Ground
Park Mortgage &
s134 Dec. 31 *Holders of rec. Dec. 24
Preferred (gust.)
*Mate Jan. 30 *Holders of roe. Jan. 20
Perfection stove (monthly)
*62A c Feb. 1 *Holders of rec. Jan. 15
Boback (H. C.) Co.. Inc.. cons.(qu.)
*25c. Feb. 1 *Holders of rec. Jan. 22
15
Corp.
Jan.
(guar.)
rec.
Petrolite
of
*Holders
1
Feb.
•134
7% first preferred (guar-)
•25c. Feb. 1 *Holders of rec. Jan. 22
*Ix Feb. 2 *Holders of rec. Jan. 15
Extra
Bohack Realty Corp.. 1st pref.(quar.)
*10c. Feb. 1 *Holders of rec. Jan. 20
Pioneer Mill, Ltd. (monthly).
$1
Mar. 15 Holders of rec. Feb. 19
Buckeye Pipe Line (guar.)
aayi Feb. 1
pref
Rubber,
1
Plymouth
•9.969c Feb.
Buckeye Shares, trust ohs., ser. A
Jan. 15 *Holders of rec. Jan. 14
*2
Printing Mach. Co., corn. & pref. (qu.)_
*25o Feb. 15 *Holders of reo. Feb. 1
Buck Hill Falls Co.(guar.)
Jan. 15 *Holders of rec. Jan. 14
•2
Common and pref. (extra)
550c Jan. 15 *Holders of roe. Dec. 31
Burdlnes, Inc., Prof. (guar.)
Moe.
&
Storage
Quincy Market Cold
Calamba Sugar Estates, corn.(guar.) _ *40c Apr. 1 *Holders of rec. Mar. 15
'134 Feb. 1 *Holders of rec. Jan. 21
Preferred (guar.)
*35c Apr. 1 *Holders of rec. Mar. 15
7% preferred (guar.)
Feb. 1
Railway Equip.& Realty, 1st pref.(gm) 53734c Mar. 1 *Holders of rec.
California Basic Industries, Inc.(guar.). *25o Jan. 2 *Holders of rm. Jan. 2
•50c. Feb. 1 *Holders of rec. Jan. 25
Randall Co., class A (guar.)
Campbell, Wyant & Cannon Fdy.,cons.- -Divid end act on deferred.
*34c. Jan. 31 Holders of Coup. No. 2
Shares
Trust
16
Jan.
rec.
Representative
1
•15c
Feb.
of
*Holders
Canadian Investors (guar.)
Revere Copper & Brass, pref.-Dividend omitt ed.
•25c Feb. 15 *Holders of rec. Feb. 1
Canadian 011 Cm.. corn.(guar.)
roe. Jan. 21
Roland Park Homeland, pref.(guar.)... *134 Feb. 1 *Holders of rm.
•25c Apr. 1 *Holders of rec. Mar. 19
Preferred (quar.)
Jan. 25
•i34 Feb. 1 *Holders of
St. Louis Car, pref. (quar.)
omitted
Mend
pref.-Div
Wire
Works,
Cheney-Bigelow
d.
deferre
action
pref.-Dividend
Bolt,
&
15
Screw
St.
Feb.
Louis
Mar. 1 *Holders of rec.
Cities Service Co., common (monthly) •2%c
Jan. 16
rec.
of
*Holders
20
Jan.
5f34 Mar. 1 *Holders of roe. Feb. 15
St. Paul Union Stock Yards (special).- *32
Corn.(pay. In corn, stock) (monthly)..
Jan. 20
Seaboard Nat. Securities, pref.(guar.)._ •3714c Feb. 1 'holders of rec.
*5e. Mar. 1 *Holders of rec. Feb. 15
Preferred B (monthly)
Jan. 22
rec.
of
Holders
1
Feb.
1
prof
Second
Standard Royalties.
*50c. Mar. 1 *Holders of rec. Feb. 15
Prof. and preference BB (monthly)
Jan. 20
rec.
of
*Holders
1
Feb.
Securities Corp. General, corn. (guar.).- •10c.
Feb. 1 *Holders of reo. Jan. 27
City Baking, 7% prof. (guar.)
1 *Holders of rec. Jan. 20
Feb.
*31.75
preferred
15
Jan.
$7
(guar.)
roe.
of
1
Feb.
*Holders
Columbus Packing, prof. (guar.)
Jan. 20
rec.
of
*Holders
1
Feb.
$1.50
(guar.)
.1%
$6 preferred
Jan. 5 *Holders of rec. Dee. 31
Coon (C.(3.) Ltd.. 7% pref. (quar.)--*30c. Feb. 1 *Holders of rec. Jan. 20
Shareholders Invest. Corp. (guar.)
Jan. 5 *Holders of rec. Dee. 31
6% preferred (guar.)
Feb. 15 *Holders of roe. Jan. 31
.3714c
(qu)
B
&
A
Gate,
Golden
Southern
Pacific
Consolidated Press, Ltd., ordinary A- Divide nd pass ed
*114 Feb. 15 *Holders of rec. Jan. 31
Preferred (quay.)
Feb. 1 *Holders of rem Jan. 21
Consolidated Rendering, pref. (guar.)- *2
*60c. Feb. 15 *Holders of rm. Feb. 1
Standard Cap & Seal (guar.)
•50c. Mar. 1 *Holders of rec. Feb. 20
Corn° Mills, common (guar.)
*7c. Feb. 1 *Holders of rec. Jan. 20
(guar.)
Corporations
Standard
20
Jan.
Crandall-McKenzie & Henderson (guar.) *15c. Feb. 1 *Holders of rec. Jan. 20
*250. Feb. 15 'Holders of rec. Jan. 29
Stein (A.) dt Co., common (guar.)
Feb. 1 •Holders of rem
*$1
Daniels & Fisher Stores
•134 Jan. 15 *Holders of rec. Jan. 1
(guar.)
pref.
Works,
Iron
20
•Iu
Stewart
Feb.
rec.
of
*Holders
1
Mar.
Decker (Alfred)& Cohn. Ins., prof.(qua
*250. Feb. 1 *Holders of rec. Jan. 23
Storkline Furniture, pref. (quay.)
De Haviland Aircraft Co., Ltd.*500. Feb. 1 *Holders of rem Jan. 20
Stott Briquette, Inc., pref. (quar.)
•11.7c. Jan. 8 *Holders of roe. Dee. 24
Amer. deposit receipts
*100. Jan. 30 *Holders of rec. Jan. 25
(guar.)
25
Paper
Sutherland
Jan.
rec.
of
1
0
.
Feb.
*Holders
De Jonge(Louis) & Co.. Pref.(quar.). 134
Feb. 1 *Holders of rec. Jan. 20
•200.
Corp.
(monthly)
Inv.
26
Telephone
*134 Feb. 1 *Holders of rem Jan.
Diamond Ice & Coal pref. (guar-)
Tiliman Electro Plating Wks., M. A.-DI vidend passed.
•250. Mar. 1 *Holders of rec. Feb. 15
Diamond Match, corn. (guar.)
334 Jan. 25 Holders of rec. Jan. 18
15
Feb.
Preferred
rec.
Mar.
of
1
*Holders
•75o.
Participating preferred
Feb. 1 'Holders of rm. Jan. 20
Troxel Manufacturing, corn. (guar-)- - *11
250. Apr. 20 Holders of rec. Mar. 31
Dome Mines, Ltd. (guar.)
•154 Feb. 1 *Holders of rec. Jan. 20
Jan. 20
1
Prefereed (guar.)
Dominion-Scottish Invest. Trust, pf.(qu) 6234o. Feb. 15 Holders of rec.
Feb. 1 *Holders of rem Jan. 25
•300.
1
Feb.
Turner
Tanning
roe.
Feb.
of
Mach.
(Mar.)
Holders
50c.
Dow Chemical, corn. (guar.)
Twelfth St. Store (III.), pref. A.-Divide nd onsi tted.
134 Feb. 15 Holders of rem Feb. I
,
Preferred (quar.)
*I% Feb. 1 'Holders of rec. Jan. 20
Feb. 1
roe,
Finan.,
7%
(aU.)
Underwriters
of
pf.
15
Feb.
*Holders
5500.
Dtiplan Silk Corp
50c. Apr. 20 Holders of rec. Mar. 31
U. S. Pipe & Fdy., corn,(guar.)
Feb. 15 *Holders of rec. Jan 31
•2
30
June
Dupuis Freres, Ltd.. pref.(guar.)
rec.
50c. July 20 Holders of
Common (quar.)
•134 Jan. 1 *Holders of rec. Doe. 31
Eastern Bakeries, Ltd.,6H% pref.(qu.) *31.50 Feb. 1 *Holders of roe. Jan. 20
50c. Oct. 20 Holders of rec. Sept. 30
Common (guar.)
Eastern UM. Investing, partic. pref
50c. Ja.20'33 Holders of rm. Dec. 31
4,2
Common (guar.)
Feb. 1 *Holders of rec. Jan. 13
(guar.)
Mills
Cotton
Elm City
Apr. 20 Holders of rec. Mar. 31
31
300.
rec.
Dee.
of
First
preferred
(guar.)
Holders
15
Jan.
100.
((Oar.).
Family Financing Corp., corn.
31
Dec.
30c. July 20 Holders of rm. June 30
rem
First
of
preferred
(guar.)
Holders
15
17 Ac. Jan.
Preferred (guar.)
300. Oct. 20 Holders of rec. Sept. 30
First preferred (guar.)
*$1.75 Feb. 1 *Holders of rem Jan. 22
Federal Electric Co., Inc., $7 pfd.(qu.)_ *$1.50 Feb. 1 *Holders of me. Jan. 22
30c. Ja.20'33 Holders of rm. Dec. 31
First preferred (guar.)
$6 preferred (guar.)
15
Feb. 1 *Holders of rec. Jan. 18
Feb.
Banking
*7c.
Corp.
rec.
U.S.
of
(monthly)....
134 Mar. 1 Holders
(guar.).
pref.
13
Rubber,
&
Tire
Firestone
*334 Feb. 1 *Ilolders of rec. Jan, 31
Unity Cotton Mills (guar.)
*250. Jan. 1 *Holders of rev. Dee, 20
First See. Corp.,Ogden, class A & B(qu.)
c Feb. 20 Holders of rm. Jan.
3734
prof.
Sr
(qu.)_..
Corp.,
Industrial
Utility
Franklin Capital-Dividend omitted.
ed.
15
Walker & Co., class B.-Dividend omitt
*50c. Mar. 1 *Holders of rec. Feb.
Freeport Texas Co.(guar.)
•75c. Feb. 1 *Holders of rec. Jan. 21
Walker Mfg., pref. (guar.)
134 Feb. 1 Holders of rec. Jan. 20
Frost Steel & Wire, lot pref. (guar.).Warner Bros. Pictures, pref.-Dividend action deferred .
*50c. Jan. 15 *Holders of rem Jan. 14
Galveston Wharf (monthly)
Western Dairy Products. $6 pref. A (qu.) *$1.50 Mar. 1 'Holders of rec. Feb. 10
•134 Feb. 15 *Holders of rm. Feb. 6
General Outdoor Advertising. Pt.(au)
Western United Corp., pref.(guar.)._ *134 Feb. 1 'Holders of rec. Jan. 16
520c. Jan. 25 *Holders of rec. Jan. 22
Gilmore Gasoline Plant No. 1 (monthly) •134 Mar. 1 *Holders of rec. Feb. 20
*10c. Feb. 1 *Holders of rec. Jan. 20
White (S. S.) Dental Mfg.(guar.)
(quar-)
Pub.,
pref.
Globe Democrat
*17 Ac Feb. 1 *Holders of rec. Jan. 20
Williams (R. C.) Co. (guar.)
Jan. 15 *Holders of rm. Jan. 15
Globe Wernicke Realty.5% pref.(guar.) •134 Feb. 15 *Holders of reo. Feb. 6
*2
Feb. 1 *Holders of rec. Jan. 15
Hosiery
Mated
W
(quar.)
Great Lakes Dredge & Dock (guar.)... nso. Feb. 1 *Holders of rec. Jan. 25
*2
May 1 *Holders of rec. Apr. 15
Quarterly
*50.
Great Lakes Engineering Works (guar.)Aug. 1 *Holders of rec. July 15
•2
Quarterly
Gruen Watch, pref.-Dividend omitted.
*2
Nov. 1 *Holders of rec. Oct. 15
Quarterly
ra
Guelph Carpet & Worsted Spinning
pref
Jan. 15 *Holders of rec. Jan. 15
Wolverine Brass Wks.,
1% Feb. 1 Holders of rec. Jan. 20
Mills, 634% prof. (quar.)
10 *Ilolders of rec. Jan. 1
7%
Jan.
*134
Corp.,
15
(guar.)._
Bros.
Feb.
pref.
Woods
rec.
of
*Holders
1
Mar.
•25ci.
1
Hale Bros. Stores, Inc. (guar.)
•134 Jan. 10 *Holders of rm. Jan.
6% preferred (guar.)
Feb. 15 *Holders of rec. Jan. 30
*15o.
(guar.)
corn.
Paper,
Hammermill
Woolworth (F. W.) ar Co., Ltd.•$1.75 Mar. 20 *Holders of rec. Mar. 5
•6 pence Feb. 6 *Holders of rem Jan. 14
Hanna (M. A.) pref. (guar.)
sbs.
ord.
for
1
rats.
dep.
Feb.
Am.
rec.
of
*Holders
•75c. Feb. 15
Hartford Times, Inc., pref.(quar.)
50c. Mar. 1 Holders of rec. Feb. 19
Wrigley (Wm.), Jr. (monthly)
•25c. Feb. 15 *Holders of roe. Feb. 1
Heath Aircraft. class B
•25c. Apr, 1 *Holders of rec. Mar. 19
Monthly
•1yi Feb. 1 *Holders of rec. Jan. 13
Hillside Cotton Mills (guar.)
15
Feb.
•50c. Mar. 1 *Holders of rec.
weeks
Hobart Manufacturing (guar.)
Below we give the diyidends announced in previous
•25c. Feb. 15 *Holders of rec. Feb. 1
Hormel (George A.) & Co., corn. (guar.) •1
dividends anFeb. 15 *Holders of rec. Feb. 1
Preferred A (guar.)
and not yet paid. This list does not include
Horn! Signal,panic. pref.-Dividend om tted.
19
nounced this week, these being given in the preceding
*3734c Feb. 1 *Holders of rem Jan. 22
Houston Oil, preferred
•25c. Feb. 1 *Holders of rec. Jan.
Hydro-Electric Securities, pref. B
*8
ord.
Books Closed.
When
Per
Imperial Tob. of Gt. Brit.& Ireland,
Days Inclusive.
Cent. Payable.
Extra (1 shilling,6 Pence)
Name of Company.
*Holders of rm. Feb. 2
I
Mar.
*75o.
(guar.)
corn.
Co.,
Ingersoll-Rand
134 Mar. 1 *Holders of rec. Feb. 5
International Harvester, prof. (quar.)
Railroad (Steam).
Feb. 1 Holders of rec. Jan. 28
Feb. 13 Holders of roe. Jan. 8
Interstate Dept. Stores, Inc., pref. (qu.)
Alabama Great Southern. Preferred__ 52
- Divides d passed.
corn.
Francisco).
(San
Investment Properties
•234 July 5
Augusta & Savannah
rm. Jan. 14
of
*Holders
1%
,
4
15
Jan.
•25c.
Ally 6
Johansen Bros. Shoe. pref. (quar.)
Extra
25
Jan.
roe.
of
*20c. Feb. 1 *Holders
Kekaha Sugar (monthly)
*234 Jan5'33
Seml-annual
Feb. 10a
134 Mar. 1 Holders of rec.
•250. Jan5'33
Kendall Co.. Preferred A (guar.)
Extra
Key Boiler Equipment-Dividend omitt ed
Public Utilities (Concluded).
Wisconsin Elec. Power.,6%% pref.(qu.) el% Apr. 1 *Holders of rec. Mar. 15
Apr. 1 *Holders of rm. Mar. 15
6% preferred (guar.)
•1).‘ Jan. 31 *Holders of rec. Jan. 20
Wisconsin Telephone. Pref.(guar.)
table.
•
JAN. 23 1932.]
FINANCIAL CHRONICLE
Per
Wehn
Cent. Payable
Books Closed.
Days IndusM.
635
Per
When
Books Closed.
Name of Company.
Cent. Payable.
Days Inclusive.
Railroads (Steam)(Concluded).
Public
Utilities
(Concluded)
.
MM.Topeka & Santa Fe, corn.(qua?.). 134 Mar. 1 Holders of rec. Jan. 29a Pacific Lighting
Corp., corn.(qua?.)
750. Feb. 15 Holders of tee. Jan. 200
Preferred
2% Feb. 1 Holders of rec. Dee. 310 Pacific Northwest Public Bernice
Baltimore & Ohio, pref. (guar.)
1
Mar. 1 Holders of rec. Jan. 160
7.2% first preferred
•1.80 Feb. 1 Holders of roe. Jan. 15
Canada Southern
Feb. 1 Holders of rec. Dec. 280 Pacific public Service, (quar.)
1st pref.(goat.). 324e. Feb. 1 Holders of rec. Jan. 15
as
Cincinnati Northern
Jan, 30 *Holders of roe. Jan. 21
Pennsylvania Pow. Co..$6.60 pf.(mthly) *55c. Feb. I Holders of
Cleve. Cin. Chicago dr St. Louis, corn_ 5
rec. Jan. 20
Jan. 30 Holders of rec. Jan. 21a Philadelphia Co., COM. (quar.)
550. Jan. 25 Holders of rec. Dec. 310
Preferred (guar.)
144 Jan. 30 Holders of rec. Jan. 210 Philadelphia Electric Co..
pt.(guar.).- $1.25 Jan. 81 Holders of rec. Jan. 90
Connecticut dr Passumpsio Rivers,
- as
Feb. 1 *Holders of roe. Jan. 1
Philadel
Suburban
phis
Water.
114
pref.
Mar.
(M)
1 Holders of roe. Feb. 12a
Cuba RR., pre/. (guar.)
1% Feb. 1 Holders of roe. Jan. 15a Portland (Me.) RR
Great Northern preferred (guar.)
Feb. 1 Holders of rec. Doe. 290 Potomac Edison Co..6% pref. (guar.)._ *2% Feb. 1 Holders of recs. Jan. 16
•144 Feb. I Holders of rec. Jan. 20
Hudson & Manhattan, prod
214 Feb. I Holders of rec. Feb. la
preferred
7%
(mar.)
•144 Feb. 1 Holders of rec. Jan. 20
Kansas City St. L.& Chic.. pt.(qua-- •1% Feb. 1 *Holders of
roe. Jan. 20
Power Corp. of Canada. Ltd., corn.(1311.) S50e. Feb. 20 Holders of roe. Jan. 30
Louisiana & Mo. River. Preferred
(174 Feb.
*Holders of rec. Jan. 20
Public Service of ColoradoLouisville & NaabvIlle
2
Feb. 1 Holders of rec. Jan. 15a
7%
preferred
(monthly)
58 1-3c Feb. 1 Holders of rec. Jan. 15a
Maboning Coal RR., common (guar.)._ $12.50 Feb.
Holders of rec. Jan. 150
6% preferred (monthly)
50e. Feb. I Holders of rec. Jan. 15a
ss
Massawippi Valley RR
Feb.
*Holders of rec. Jan. I
5% preferred (monthly)
41 2-3c Feb. 1 Holders of res. Jan. 154
Michigan Central
$25 Jan. 30 Holders of rec. Jan. 210 Public Serv.Corp.o
f N./.,6%1:11.(mthlY
50e. Jan. 30 Holders of tee. Jan. 2a
Minehill & Schuylkill Haven
$1.25 Feb.
Jan. 16 to Jan. 31
Public Service Co.of Nor. IllinoisNorfolk & Western. adj. pref.(qua?.)
1
Feb. 1 Holders of rec. Jan. 30a
No par and $100 par corn. (quar.)
412 Feb. 1 Holders of rec. Jan. 15
Northern Pacific (quar.)
75c. Feb.
Holders of rec. Dec. 310
Feb. 1 Holders of tee. Jan. 15
7% preferred (guar.)
Peoria & Bureau Valley
*3% Feb. 1 *Holders of rec. Jan. 21
•s
6% preferred (guar.)
Feb. 1 Holders of rm. Jan. 15
Pittsburgh & Lake Erie
$2.50 Feb.
Holders of rec. Dec.tn24a Railway & Light Securities. corn. (QU)50c. Feb. 1 Holders of tee. Jan. 15
Pittsb. Youngs.& Ashtabula, pref.(qua '134 Mar.
*Holders
of rec. Feb. 20
Preferred Mara
134
Holders of rec. Jan. 15
Reading Company, common (guar.)._
500 Feb. 11 Holders of roe. Jan. 140 Rhode bid.Pub.Serv.,ol. (goat.)
F
Feb.. 1 Holders of tee. Jan. 15
411
A
Shamokin Valley & Pottsville
*$1.50 Feb. 1 *Holders of roe. Jan. 15
Preferred (guar.)
.500. Feb. 1 Holders of tee. Jan. 15
Troy & Bennington
•5
Feb. I *Holders of roe. Jan. 25
Rockland Light & Power (quar.)
•22c. Feb. I Holders of reo. Jan. 15
Utica Clinton & Bingh.„ deb. stock
*241 Dec. 28
Southern Calif. Edison, corn.(guar.)...
500. Feb. 15 Holders of rec. Jan. 200
Sou. Calif. Gas Corp..$814 pf.(qua...._ 31.625 Feb. 29 Holders of rec. Jan. 31
Public Utilities.
Canada Power, corn.(gust.).. 1250. Feb. 15 Holders of rec. Jan. 30
Southern
Alabama Power,$5 pref.(guar.)
$1.25 Feb. 1 Holders of rec. Jan. 15
Standard Gas & Elec. Co.. corn.(qua?.). 8714o- Jan. 25 Holders of rec. Dec. 310
Amer. Cities Pow.& Lt., class A (qu.)
(p) Feb. I Holders of ree. Jan. 5
56 prior preference (guar.)
31.50 Jan. 25 Holders of roe. Dec. 310
Amer. Gas & Electric, prof.(quar.)
$1.50 Feb. 1 Holders of roe. Jan. 9
$7 prior preference (guar.)
$1.75 Jan. 25 Holders of rec. Deo. 31a
Amer. Light & Tract., corn. (quar.)
6234c Feb. 1 Holders of rec. Jan. lba Stand.
Pow.& Lt., corn. &(aim.B (01.)
Holders of rec. Feb. 11
50o. Mar.
Preferred (quar.)
1)4 Feb. 1 Holders of tee. Jan. 15a
Preferred (guar.)
1%
Holders of tee. Jan. 18
Amer. Water Works &Elec.,corn.(qua. 75e. Feb. 1
Holders
41.75 Feb.
.
*Holders of rec. Jan. 15
Arkansas-Mo. Power, pref. ((Mara
.1,134 Feb. 1 *Holders of rec. Jan. 80 Standard Telep. (Del.) prof. (quar.)
•174
of
rec.
Tacony-Pai
Jan.
Bridge.
15
myra
pref. (quar.)
Feb. 1 'Holders of rec. Jan. 10
Associated Gas &Elea..cLA((Mara.-- (z) Feb. 1
Holders of rec. Dee. 30
Texas Power & Light,7% pref. ((Mar.)
134 Feb. 1 Holders of rec. Jan. 15
$4 prof.(qu.) (cash or 1-70 sh.$5 111.) 231
Feb. 1 Holders of reo. Dec. 30
$1.50 Feb. 1 Holders of rec. Jan. 15
38 preferred (quar.)
$4 preferred (guar.)
S1$1 Feb. 1 *Holders of rec. Jan. 30
Toledo Edison Co.7% pf.(mthly.)_. 58 1-3e. Feb. 1 Holders of rm. Jan. 150
Associated Telep., Ltd., $1.50 pf.(qua_ *3734c Feb. 2
6% preferred (monthly)
500. Feb. 1 Holders of rec. Jan. 150
Atlantic City Elec. Co.. $6 prof.(guar.) *$1.50 Feb. 1 *Holders of roe. Jan. 15
*Holders of rec. Jan. 9
5% preferred (monthly)
4 1 2-3o. Feb. 1 Holders of rec. Jan. 150
Bangor-Hydro Elec.(guar.)
*50o. Feb. 1 *Holders of roe. Jan. 11
United Light & Power, corn. A & B (qu.)
25e.
Holders of rec. Jan. 15.2
Brazilian Tr., Lt.& Pow.,ord.(quar.).... 25e. Mar. 1
Holders of rec. Jan. 30
Un. LL&Rys.(Del.)7% Dr.Pf.(mthly.)*5 8 1-3e. Feb..
*Holders of rec. Jan. 15
British Columbia Telep.. 6% prof.(qua •144 Feb.
6.36 prior pref. (monthly)
•53o. Feb. 1 *Holders of tee. Jan. 15
Broad River Power,7% prof.(guar.).- 134 Feb. 1 "Holders of rec. Jan. 15
•
*Holders
of roe. Dee. 30
•50c Feb. 1 *Holders of tee. Jan. 15
8% prior pref.(monthly)
Brooklyn-Manhattan Tr.. pref. A (qua- $1.50 Apr. 15
Holden of tee. Apr. la United Ohio Util., 6% Pr Pt. (go.)
sit% Feb. 1 "Holders of rec. Jan. 9
Buff. Niagara & East. Poweras% Feb.1
U.S.Electric Power. prof.(guar.)
1 *Holders of rec. Jan. 2
First preferred (guar.)
*31.25 Feb. 2 *Holders of rec. Jan. 15
Utica Gas & Elec.. $8 pref.(guar.)
'$1.50 Feb.
*Holders of roe. Jan. 20
Calgary Power, Ltd.,6% pref.(guar.)
134 Feb. 1 Holders of rec. Jan. 15
West Penn Electric Co..7% pref.(01.)Feb. 15 Holders of ree. Jan. 200
Canada No. Pow. Corp., corn.(quar.)....
200. Jan. 25 Holders of rec. Dec. 31
(1% preferred (guar.)
141 Feb. 15 Holders of rec. Jan. 200
Central Arizona L.& Pow.. $7 pf.(qu.) "$1.75 Feb. 1
*Holders of rec. Jan. 15
West Penn Pow.Co.,7% Pref.(Quar.)
1% Feb. 1 Holders of rec. Jan. fai
$6 preferred %quar.)
*$1.50 Feb. I *Holders
144 Feb. 1 Holders of rec. Jan. 5a
6% preferred (guar.)
Central Hudson Gas & El., corn.(qua-- "20e. Feb. 1 *Holders of rec. Jan. 15
of rec. Dec. 31
Western United Corp., pref. (quar.)____
Feb. 1 *Holders of rec. Jan. 16
Central & S. W.Coil.$7 pr.Len (ill.)--- *31.75 Feb. 15 *Holders of
roe. Jan. 30
York Rya., pref. (guar.)
62% dApr.1 Holders of rec. dMar. 1
$7 preferred (quar.)
*$1.75 Feb. 15 *Holders of rec. Jan. 30
$6 prior lien (guar.)
411.50 Feb. 15 *Holders of rec. Jan. 30
Trust Companies.
Central West Pub. Serf., class A (guar.) 412% Feb. 1 *Holders
of rec. Jan. 15
Corn Exchange Bank Trust (qu.)
Feb. 1 Holders of rec. Jan. 215
Si
Preferred A (guar.)
ars Feb. 1 "Holders of rec.
Jan. 15
Preferred B (guar.)
'134 Feb. 1 *Holders
Fire Insurance
Cities Serv. Pow.& Lt.. $7 IK.(mthly.)- 581-ac Feb. 15 Holders of rec. Jan. 15
of rec. Feb. la Lincoln (new)(guar.)(No. 1)
*25c Jan. 30 *Holders of roe. Jan. 15
$6 preferred (monthly)
50o. Feb. 15 Holders of rec. Feb. la
$5 preferred (monthly)
41 2-30 Feb. 15 Holders of rec. Feb. la
Miscellaneous.
Cleveland Elec. Ill., pref.(quar.)
144 Mar.
Holders
of
rec.
Feb. 15a
Columbia Gas & Elec., corn.(guar.)--- 3744e Feb. 1
Holders of rec. Jan. 25a Abraham & Straus, Inc., pref.(gust.)
15.4 Feb.
6% preferred (guar.)
Holders of rec. Jan. 150
$1.50 Feb. 1 Holders of rec. Jan. 253
(J. D.) Mfg.(guar.)
*30c. Feb.
5% preferred (quar.)
*Holders of roe. Jan. 15
$1.25 Feb. 1 Holders of rec. Jan. 250 Adams
Adams Millis Corp., corn.(guar.)
Feb.
50e.
Commonwea,th-Edison Co. (quar.)...Holders of rec. Jan. 190
*Holders of rec. Jan. 15
First preferred (guar.)
15( Feb.
Commonwealth & Southern Corp., corn_ *215o. Feb.
Holders of rec. Jan. 19
Mar.
Holders of rec. Feb. 54 Alaska Juneau Gold Mining (qu.)
Concord Gas, 7% pref. (guar.)
1214c Feb.
Holders of rec. Jan. 90
'134 Feb. 1 *Holders of roe. Jan. 30
•sss Mar. "Holders of rec. Feb. 15
Allegheny Steel, pref. (mar.)
Consolidated Gas(N. Y.), corn. (guar.) $1
Mar. 1 Holders of rec. Feb. 5a Allied Chemical & Dye,
corn.(gust.).... $1.50 Feb.
Holders of rec. Jan. Ila
$5 preferred (quar.)
$1.25 Feb.
Holders of rec. Dee. 250 AlliedKid, $6.50 prof.(qua?.)
Consumers Power.$5 pref.(guar.)
*$1.625 Feb. 2 *Holders of rec. Jan. 20
$1.25 Apr.
Holders of rec. Mar. 15
Allis-Chalmers Mfg., common (quar.).. 12S4c. Feb. 15 Holders of rec. Jan. 230
6% preferred (guar.)
144 Apr.
Holders of rec. Mar. 15
Alpha Portland Cement. corn.(gear.)
6.8% preferred (quar.)
25o. Jan. 25 Holders of rec. Jan. 24
1.65 Apr.
Holders of rec. Mar. 15
Altorfer Bros. Co.. cony. pref.(au).... •75o. Jan. 30 *Holders of roe. Jan. 15
7% preferred (quar.)
134 Apr.
Holders of rec. Mar. 15
AmeradaCorporation (quar.)
Jan. 30 Holders of roe. Jan. 150
6% preferred (monthly)
500.
50e. Feb.
Holders of rec. Jan. 15
American Can, common (quar.)
6% preferred (monthly)
Feb. 15 Holders of rec. Feb. 2a
$1
50c. Mar. 1 Holders of rec. Feb. 15
American Coal (guar.)
Feb.
$1
1 Jan. 12 to. Feb . 1
6% preferred (monthly)
50a Apr. 1 Holders of rec. Mar. 15
Amer. European Securities. pref.((Mara $1.50 Feb. 15 Holders of rec. Jan. 30
6.6% preferred (monthly)
55e. Feb. I Holders of rec. Jan. 15
American Home Prod. Corp.(mthly.)
350. Feb. 1 Holders of rec. Jan. 14s
6.6% preferred (monthly)
55. Mar. 1 Holders of rec. Feb. 15
American Ice, corn. (quar.)
50e Jan. 25 Holders of rec. Jan. 40
6.6% preferred (monthly)
55e. Apr. 1 Holders of rec. Mar. 15
Preferred (quar.)
Cumberland Co. Pow.& L., pref.(qua- 134 Feb.
$1.50 Jan. 25 Holders of rm. Jan
40
1 Holders of rec. Jan. 18
American Machine & Fdy.. corn.(guar.)
35c Feb. 1 Holders of rec. Jan. 21a
Dayton Pow.& Lt.,6% Id.(monthly).- *50c. Feb.
1 *Holders of rec. Jan. 20
American Meter (guar.)
Edison Elec. III.. Boston (guar.)
*75c. Jan. 30 *Holders of rec. Jan. 20
3.40
Feb.
1
Holders
of
rec.
Shipbuildin
Jan.
(guar.)
Amer.
11
corn.
g,
Electric Bond & Share,$6 pref.(guar.).- $1.50
$1.25 Feb. 1 Holders of rec. Jan. 15a
Feb. 1 Holders of rec. Jan. 9
Preferred (guar-)
.1.154 Feb. 1 *Holders of rec. Jan. 15
$5 preferred (guar.)
Amer. Smelt & Refining, corn. (qua?.).. 12Ho Feb. 1 Holders of reo. Jan. 1541
Electric Power Assoc.. cont.& cl. A (qu.) $1.25 Feb. 1 Holders of rec. Jan. 9
25c.
Feb.
1
Holders
of
rec.
Jan.
First preferred (guar.)
15
Electric Power & Light. corn.(guar.)--13.4 Mar. 1 Holders of reo. Feb. 50
25e. Feb. 1 Holders of roe. Jan. 90
Second preferred (guar.)
Cora, allotment etre. full paid (qua
134 Mar. 1 Holders of roe. Feb. dba
1214e Feb. I Holders of ree. Jan. 90 Amer. Sugar
Com,allotment etre. 90% paid
Refg.. corn. (guar.)
*I
Apr. 2"Holders of rec. Mar. 5
(qua
Feb.
11440
1
Holders
of
roe.
Jan. Pa
Preferred (guar.)
Second preferred A (guar.)
*134 Apr. 2 *Holders of rec. Mar. 5
Amer. Thermos Bottle, clam A (guar.).- *15e. Feb. 1 *Holders of rec. Jan. 20
Empire District El. Co..6% p1.(mthly.) *134 Feb. 1 *Holders of roe. Jan. 9
50o. Feb. 1 Holders of rec. Jan. 15
Anglo
Persian
011 Co.. Ltd.
Emigre Gas & Fuel.8% pt.(mthly.)662-30 Feb. 1 Holders of rec. Jan.
Amer dep. rata., 1st pref. tog
7% preferred (monthly)
•ts4
Feb. 6 *Holders of rm. Dec. 31
58 1-ac Feb. 1 Holders of rec. Jan. 15a
150
Amer dep. rats.. 2d pref. reg
644% Preferred (monthly)
.1so4,4 Feb. 8 *Holders of rec. Dec. 31
54 I4e Feb. 1 Holders of rec. Jan. 15a
6% preferred (monthly)
Archer
Daniels
-Midland Co.. pref. (gti.) 1% Feb. 1 Holders of rec. Jan ales
50c.
Feb.
1
Holders
of rec. Jan. 15a Associated Dry Goods, 1st pref.(qu.)-.
Foreign Power Securities, 6% pref.(qu.) 134 Feb.
1% Mar.
Holders of rec. Feb. 110
15 Holders of rec. Jan. 31
Frankford & Southwark Phila. Pass KY. 414.50
Second preferred (guar.)
Holders of rec. Feb. 110
1% Mar.
Germantown Passenger RY. (gu.)---*3 1.3144 Apr. 1 *Holders of rec. Mar. 1
Associated Standard Oil Shares
14.03c
Feb.
*Holders
•
of roe. Jan. 15
Apr.
5
*Holders
of rec.
Atlas Drop Forge-Dividend omitted.
Hamilton Bridge, pref. (quar.)
1% Feb. 1 Holders of rec. Mar. 16
Jan.
Hartford Electric Light (guar.)
15
Atlas
Powder,
pref (gust)
114 Feb 1 Holders of roe Jan 205
*6834 Feb. 1 *Holders of rm. Jan.
15
Havana Elec.& Utilities, 181 pt.(qua.-- $1.50 Feb.
Austin Nichols & Co.. prior A (guar.)
3744c. Feb.
Holders of rec. Jan. 15a
15 Holders of rec.
Balaban & Katz, corn. (guar.)
$5 preferred (quar.)
*75o. Apr. 2 *Holders of roe. Mar.19
$1.25 Feb. 15 Holders of rec. Jan. 14
Jan. 14
7% preferred (guar.)
Idaho Power. 7% pref. (guar.)
'154 Apr. 2 *Holders of too. Mar.19
134 Feb. 1 Holders of rec. Jan. 15
sae Feb. 2 *Holders of roe. Jan. 31
Banditti Petroleum (monthly)
$6 preferred (quar.)
$1.513 Feb.
Illinois Northern Utilities. prof. (gust.). •1 )4 Feb. 1 Holders of rec. Jan. 15
Beatty Bros.. Ltd.. COM. A (quar.)
/25e. Feb. 1 Holders of rec. Jan. 16
1 *Holders of roe. Jan. 15
Junior preferred (guar.)
First preferred (guar.)
1% Feb. I Holders of rec. Jan. 15
Feb. 1 *Holders of rec. Jan. 15
'134
Belding-Corticeill, Ltd. corn. (quar.).... I% Feb. 1 Holders of rec. Jan. 15
Illinois Pow.& Lt. Corp.. $8 pref.(qua- $1.50 Feb. 1
Holders of rec. Jan. 9
Internee' Utilities $7 prior pre/.(quar.)- •$1.75 Feb. 1
Beneficial Industrial Loan, corn Om 1
8754o Jan 3 Holders of tee. Jan. IS
*Holders of rec. Jan.
$3-50 prior preferred (quar.)
Preferred (guar.)
8744c Jan. 3 Holders of rm. Jan. 15
•87140 Feb. 1 *Holders of rec. Jan. 15
15
Keystone Telephone of Phila.,$3 of.(qu) •75:. Feb. 1
Bethlehem Steel, corn.((MIL)
50c. Feb. 1 Holders of rec. Jan. 180
*Holders of rec. Jan. 21
Birtman
Electric
Lone Star Gas. Prof.(guar.)
Co., corn.(guar.)
*Holders of rec. Jan. 15
'12340 Feb.
41.63 Feb.
'Holders of rec. Jan. 20
$7 preferred (guar.)
Louisiana Power & Light. 56 pref.(qu.)- $1.50 Feb. 1
*31.75 Feb. I *Holders of rec. Jan. 15
1 Holders of rec. Jan. 16
Middle West Utilities, corn .(in comatka /2
le Bros.. prof. (guar.)
Holders of rec Jan 200
154 Feb.
Feb. 15 Holders of rec. Jan. 15a Bloomingda
Boo
$e preferred (guar)
Aral Co., torn. A (guar.)
Jan. 3 Holders of rec. Jan. 140
$I
(s) Feb.
Holders of rec. Jan. 15
Borden Co., corn. (guar.)
Milwaukee Elec. Ky.& Light. Prof.(qua 134 Feb. 15
750. Mar.
Holders of tee. Feb. 150
1 Holders of rec. Jan. 20a
Boss Mfg., common (guar.)
Mohawk Hudson Power, Pref. (guar.).- $1.75 Feb. 1
Feb. 1
1
Holders of reo. Jan. 80
Holders of rec. Jan. 15
Brach (E. J.) & Sons (guar.)
Montreal L. H.& P. Consol.(gnat%)--*25o. Mar.
*Holders of too. Feb. 13
38c. Jan, 81 Holders of rec. Dec. 31
Briggs Manufacturing. corn.((Mara-Municipal Service, pref.(quar.)
25e. Jan. 2 Holders of rec. Jan. lba
'134 Feb.
*Holders of rec. Jan. 15
British-Ame
Mutual Telep.(Hawaii) (mthly.)
rican
Tobacco,
ord.(final)
(o) Jan. 25 See note (o).
*80. Feb. 1 *Holders of ree. Jan. 18
National Electric Power,corn. A (guar.). •45e. Feb.
Ordinary ,interim)
(0) Jan. 25 See note (o).
"Holders of rec. Jan. 8
Broadway Dept. Store, pre.(guar.)---National Power & Light,$6 pref.(guar.) 81.50 Feb.
Feb. 1 *Holders of roe. Jan. 18
Holders of rec. Jan. 9
Brown
Shoe. pref. (quar.)
Nat. Tel. & Tel.. class A (guar.)
114 Feb. 1 Holders of rec. Jan. 200
*87c. Feb.
"Holders of rec. Jan. 17
Bullocks, Inc. pref. (quar.)
•1yi Feb. 1 *Holders of
First preferred (guar.)
.2134 Feb.
tee. Jan. 11
*Holders of rec. Jan. 17
Bunte Bros.,common((Mara
Nevada-California Electric, Pref.(guar.) 134 Feb.
*31
Feb. 1 *Holders of rec. Jan. 25
Holders of rm. Dec. 300
Preferred (guar.)
North Amer. Gas & Elec.. clam A
.013.4 Feb. 1 *Holders of tee. Jan. 25
•100. Feb.
*Holders of rec. Jan. 15
Burma Corp., Ltd., Am.del). rata
*(v) Feb. 20 *Holders of rec. Jan. 14
$8 preferred (quar.)
41.50 Feb.
*Holders of roe. Jan. 15
Bush Terminal. corn.(guar.)
North American Light & Power6244e. Feb. 1 Holders of rec. Jan. 85
Byers(A. M.)Co., pref.(guar.)
Common On common stock)
1% Feb. 1 Jan. 17 to Jan.
Holders
Feb.
1
of rec. Jan. 20
/2
Cabot (Godfrey La. Inc
56 preferred (guar)
*$15 Jan. 80 *Holders of rec. Jan. 28
$1.50 Apr.
Holders of rec. Mar 19
Campo Corp., 6,4% pref.(guar.)
North Shore Gas. Pref.(guar.)
•154 Feb. 1 *Holders of rec. Jan. 15
4.1,4 Apr.
*Holders of rec. Mar. 10
15
Canadian Bronze, corn. (guar.)
Preferred (guar.)
3154o Feb. 1 Holders of rec. Jan. 20
4.114 Ally
*Holders of rec. June 10
Preferred (guar.)
Preferred (guar.)
1;4 Feb. 1 Holders of rec. Jan. 20
*Ix Oct.
*Holders of rec. Sept. 10
Canadian
&
Car
Fdy.,corn.(guar.)
Northern N.Y. Utilities. prof.((Mara-- 134 Feb.
t25e Feb. 29 Holders of rec. Feb. 15
Holders of rec. Jan. 11
Canadian Converters,common (guar.)._
Northern Ontario Pow., Ltd., corn.(qu.) 50e. Jan. 2 Holders of
50o Feb. 15 Holders of rec. Jan. 30
rec. Dec. 31
Canadian Dredge & Dock,7% Pf.(quar.) 1% Feb.
6% preferred (quar.)
1 Holders of rm. Jan. 15
134 Jan. 25 Holders of rec. Dec. 31
Canadian Foreign Investment, pf. WILL. 2
Nor.States Power (Del.), corn. A (quar.) 2
Feb. 1 Holders of rec. Dec. 31
Canadian Industries. Ltd..cont.(gUara- •6244e Feb. 1 Holders of rec. Jan. 15
Ohio Pub. Serv. Co.. 7% pf.(monthly). 58 14c Feb. I Holders of
Jan. 80 *Holders of rec. Dec. 31
rec.
Jan.
15a
Capital
Management Corp. (guar.)._ *25o Feb.
6% preferred (monthly)
*Holders of rec. Jan. 25
50c. Feb. 1 Holders of rec. Jan. 15.2 Carman & Co., Inc.. clam
A (guer.)____
5% preferred (monthly)
50e Mar. 1 Holders of rec.
41 2-3c Feb. 1 Holders of
Feb. 16
Pacific Gas & Elec..6% pref.(gear).- •37340 Feb. 15 *Holders of zee. Jan. 15a Cartier, Inc., 7% pref. (guar.)
Jan.
'13.4
3
*Holders
roe.
of too. Jan. 15
Jan. 30
Central Illinois Securities, cony, pt.(go.) *37360
534% preferred (quar.)
.343i Feb. 15 *Holders
Feb.
*Holders of rec. Jan. 20
of rec. Jan. 30
Century Ribbon Mills, Inc.. pref. (go.).
1,6 Mar. 1 Holders of rec.
Feb. 200
Name of Company.
[VoL. 134.
FINANCIAL CHRONICLE
636
Name of Company.
When
Per
Cent. Payable.
Rooks Closed.
Days Inchalm.
Name of Company.
When
Per
Cent. Payable
Books Closed.
Days Inclusive.
Miscellaneous (Continued).
Miscellaneous (Continued).
300. Mar. 1 Holders of roe. Feb. 150
Link Belt Co., corn.( guar.)
150. Feb. 1 Holders Of re43. Feb.
.1.1% Apr. 1 *Holders of roe. Mar. 15
Centrifugal Pipe (guar.)
(guar.)
Preferred
May
reo.
of
1
Holders
(Sc.
May
Quarterly
15e. Feb. 1 Holders of rec. Jan. 16
Breton
Theatres
(guar.)
Loew's
Aug.
(Sc. Aug. 1 Holders of roe.
Quarterly
650. Feb. 1 Holders of rec. Jan. 18s1
Loose-Wiles Biscuit, corn. (guar.)
15c. Nov. 1 Holders of tee. Nov.
Quarterly
100. Feb. 1 Holders of rec. Jan. 186
(extra)
Common
1
Jan.
roe.
of
Holders
Feb.
700.
Century Shares Trust, panic. shares- _
*2 Feb. 1 *Holders of rec. Jan. 16
Holders of roe. Jan. I a Lord & Taylor,second pref.(guar.)
25e. Feb.
Cerro de POOCO Copper Corp.(go.)
MM.Gold
Lucky Tiger Combination
*Holders of reo. Jan. 1
•134 Feb.
sae. Apr. 20 *Holders of rec. Apr. 10
merry Burrell Co.. Prof.(guar.)
Common
Holders of roe. Feb. 1 a
50e. Mar.
Chicago Yellow Cab lguar.)
•30. Apr. 20 *Holders of rec. Apr. 9
Quarterly
• 10.335c Feb.
*Holders of rec. Jan. 1
•134
Cities Service, hankers shares
Feb. 1 *Holders of rec. Jan. 20
Holders of rec. Jan. 15a Lyon Metal Prod.,Inc.. prof.((Mara- •300. Feb. 1 *Holders of rec. Jan. 15
234c. Feb.
Cities Service Co.. corn. (monthly)
(guar.)
Holders of rec. Jan. 15a M-A-C- Plan, Inc., pre/.
Corn.(payable in corn.stk.)(monthly) 114 Feb.
Feb. 1 Holders of rec. Jan. 15
let
Corp.,
)
pref.
Steel
(guar
MacKinnon
Holders of rec. Jan. 15a
Sc. Feb.
Preferred B (montbly)
75e. Feb. 15 Holders of rec. Jan. 220
Holders of rec. Jan. 15a Macy (R. H.) & Co.. common stock... 16
50c. Feb.
Prof. and preference BB (monthly).Feb. 15 Holders of rec. Jan. 226
common
In
payable
Common
21a
Jan.
re.s.
Holden or
50o. Feb.
Cluett. Peabody & Co.. Inc.. corn.
'34 Jan. 30 *Holders of rec. Dee. 31
Mansfield Theatres (Toronto)
Apr. 5
51.50 Feb. 1 Holders of roe. Jan. 166
Coca Cola Bottling Co.of St. L.(guar.)- *40c. Apr. 1 *Holders of rec. July 5
Co., 1st pref. (guar.)
Maytag
rec.
of
*Holders
1
July
•40c.
Quarterly
750. Feb. 1 Holders or rec. Jan. 150
Cumulative preference (guar.)
*40o. Oct. 1 *Holders of roe. Oct. 5
62140. Feb. 1 Holders of no. Jan. 200
Quarterly
corn. (guar.)
Holders of rect. Mar. 10a McCall Corporation,
154 Feb. 1 Holders of rec. Jan. 200
Colgate Palmolive Peet Co.. pref.(OIL)- 134 Apr.
Corp.. prof. (goat.)
Stores
McCrory
15a
Jan.
rec.
of
dere
Ho
750. Feb.
250. Mar. 1 Holders of rec. Feb. 1
Columbian Carbon (guar.)
McIntyre Porcupine Mines (goat.)
rec. Feb. 15
'Sc Jan. 25 *Holders of rec. Jan. 5
Congoleum-Nairn. Inc.. pref. (guar.)--- '134 Mar. *Holders of
McLeod Oil (No. 1)
*Holders of rec. Jan. 15
50o. Feb. 1 Holders of roe. Jan. 15a
Consol. Chemical Indust.. el. A (guar.). •37Hc Feb.
(guar.)
corn.
Shoe
Corp.,
Melville
15a
Jan.
rec.
of
Holders
•134 Feb. 1 "Holders of rec. Jan. 16
Consolidated Cigar Corp.. pr. prof.(g11.) 134 Feb.
First preferred (guar.)
Holders of roe. Feb. 15a
134 Mar.
Feb. 1 *Holders of roe. Jan. 15
•71Xc.
Preferred (guar.)
Second preferred (guar.)
*Holders of reo. Jan. 15
*31 Feb. I *Holders of rec. Jan. 21
Consolidated Laundries. pref.(guar.)..* 81.875 Feb.
Merchants Refrig., common (extra)._ .1%
'Sc. Jan. 2 *Holders of rec. Jan. 15
Feb. 1 "Holders of rec. Jan. 21
Consolidated Royalty 011(guar.)
(guar.)
Preferred
6214c Feb. 1 Holders of rec. Feb. la Metal dr Thermit Corp..common (qu.)
*$1.50 Feb. 1 *Holders of recs. Jan. 20
Continental Can, common (guar.)
'Holders of rec. Jan. 12
- '134 Feb.
Coon (W. B.) Co.,7% pref.(guar.).
IndustriesMetropolitan
25
Jan.
*Holders of rec.
of rec. Jan. 20
'334 Feb
Crowell Publishing y% pre/
Pref, allot. ctfs., 50% paid (guar.)- *75e. Feb. 1 *Holders of
Holders of rec. Feb. 13
roe. Jan. 11
Feb. 1 *Holders
Crown Zellerbach Corp.. pref. A (guar.) 3734c. Mar.
Metropolitan Storage Warehouse (guar.) .111
Holders of rec. Feb. 13
3734o. Mar.
1 Holders of rec. Jan. 20
Feb.
Preferred B (guar.)
134
(guar.)Can.,
pref.
Minnesota
Valley
21
Mar.3 *Holders of roe. Mar.
rec. Jan. 15
*2
of
Holders
1
Feb.
$1.50
Crum & Forster, preferred (guar.)
Miss. Val. Utll. Invest.,$8 prdien (gu.)*Holders of rec. Jan. 15
*Basic Feb.
•25e. Feb. 1 *Holders of rec. Jan. 20
Cuneo Press, common (guar.)
Modine Mfg. (guar.)
1
Mar. 1 Holders of reo. Jan. 80
•134 Mar. 1 *Holders of rec. Mar. 20a
250.
Preferred (guar.)
Mining
Mohawk
Holders of tee. Jan.
Feb.
2
Feb. 1 Holders of roe. Jan. 25
Dennison Mfg.. deb. stock (guar.)
Morris Plan Bank (Cleveland) (gust.).. 3
*Holders of roe. Jan. 2
of roe. Jan. 24
Deposited Insurance Shares. ser. A.... •11.5c Feb.
Mortgage Corp. of Nova Scotia (guar.). •15/ Feb. 1 *Holders of
*Holders of rec. Feb. 19
no. Jan. 206
Feb. 1 Holders
50e.
DictaphoneCorp.. common (altar.).... *250 Mar.
(guar.)
Co.
Motors
Nash
of rec. Feb. 19
"Holders
Mar.
*2
reo. Jan. 20
of
1
Holders
Feb.
2
(guar.)
Preferred
National Carbon, pref. (guar.)
Holders of roe. Jan. 15
50c. Feb. 1 Holders of roe. Jan. I54
Disher Steel Constr., pref. A (guar.)... 3734e. Feb.
National Distillers Products corn.(guar.)
of rec. Jan. 31
Distillers Co.. LtdNat. Industrial Loan Corp., COM.(go.). 3215e. Feb. 15 Holders of rec. Jan. 15a
*Holders of roe. Jan. 11
115 Feb. 1 Holders
Amer. dep. rota. ord. reg. shares.... (n) Feb.
NationalLead, prof. B (guar.)
18234c Feb. 1 Holders of roe. Jan. 30
Feb. 1 Holders of rec. Jan. 14
H
13
c.
Dominion Bridge (guar.)
Tea,
pref.
National
(guar.)
30
n32 He May 1 Holders of rec. Apr.
.0314 Jan. 30 *Holders of roe. Dec. 31
Quarterly
National Weaving, prior preferred
Holders of roe. Jan.
134 Feb. 1 Holders of rec. Jan. 15
Dominion Tar & Chemical. pref.(guar.). 1154 Feb.
Neisner Bros.,Inc.. prof.(guar.)
•75e. Feb. 1 *Holders of moo. Jan. 15
Du Pont(E. I.) de Nemoura & Co.
pf.(gu.)
Canada,
West.
Products
of
Neon
114 Jan. 2 Holders of roe. Jan. 9a
Feb. 1 *Holders of roe. Jan. 22
*50o.
Debenture stock (guar.)
New Amsterdam Casualty (guar.)
Holders of rec. Jan. 15
250 Feb.
of roe. Jan.d15
Eastern Dairies (guar.)
New England Equity Corp.. corn.(go.) 6210 Feb. I Holders
75o Apr.
Eastern Food Corp., class A (goat.)....
Products
Grain
New England
75c July
rec. Jan. 14
of
1
*Holders
Feb.
Class A (guar.)
Corn.(1-100 share In pref. A stock)
Holders of roe. Jan. 30
50o. Feb. 10 Holders of rec. Jan. 20a
Eastern Theatres. Ltd.. corn. (quar.)-- 50o Mar.
New Jersey Zino (guar.)
rec. Jan. 19
of
394 Jan. 3 Holders of roe. Dec. 31
Holders
30
Jan.
250.
Preferred
Holders of roe. Jan. 156 N. Y.& Honduras Roearlo Mining
12940. Jan. 30 Holders of roe. Jan. 19
Eaton Axle & Spring. common (gust.).. 1214c Feb.
Extra
*Holders of roe. Jan. 22
Feb.
*1
Feb. 1 Holders of roe. Jan. 20
250.
Empire Title & Guarantee (guar.)
)
(g11
Inc..
oom.
Co.,
Y.
N.
Merchandise
23
"Holders of roe. Jan.
Feb.
*2
Eppel's. Smith de Co
154 Feb. 1 Holders of rec. Jan. 20
7% preferred (guar.)
Holders of roe. Jan. 16
Feb.
1
Eureka Pipe Line (guar.)
•13/ Mar. 1 "Holders of roe. Feb. 18
Newberry (J. J.) co.. roof.(guar.)
•600 Feb. 1 *Holders of rec. Feb. 5
•1% Feb. 1 *Holders of rec. Jan. 15
Ewa Plantation ((warted,)
(g11)
A
CorP.,pf.
Realty
150
Newberry (J.J.)
6340 Jan. 3 Holders of rec. Jan.
'194 Feb. 1 *Holders of roe. Jan. 15
Exchange Buffet Corp
Preferred I) (guar.)
*Holders of tee. Jan. 20
•134 Feb.
Feb. 15 Holders of roe. Jan. 306
Faber. Coe & Gregg. pref.(guar.)
$1
Holders of rec. Jan. 20a North American Match Corp
134 Feb.
Fair (The), pref.(guar.)
•250. Feb. 1 *Holders of moo. Jan. 15
(guar.)...
corn.
Northweet Engineering.
Mar 16
Feb. 1 Holders of roe. Jan. 206
Faultless Rubber,corn.(guar.).- ---- 500. Apr.
$1
Outlet Co., corn. (guar.)
*Holders of roe. Jan. 20
Federal Co-operative Fin.. 7% Pt.(qua •lat Feb.
1% Feb. 1 Holders of rec. Jan. 20a
First preferred (guar.)
Holders of rec. Jan. I5a
6214e Feb.
Feb. 1 Holders of rec. Jan. 20
Federal Knitting Mills, corn.(gu.)
114
Second preferred (guar.)
*Holders of rec. Jan. 18
*134 Feb.
Fibreloid Prod., prior pref.(guar.)
50o. Feb. 15 Holders of rec. Jan. 306
Owens-Illinois Glass, common (goat.)..
25c Feb. 1 Holders of rec. Jan. 30
Foundation Co. of Canada. corn.(go.)
Apr. 1 Holden of rec. Mar.16
134
Preferred (guar.)
*Holders of rec. Jan. 15
of roe. Jan. 15
FultonIndus. Sec.(Atlanta). common •1214e Feb.
Co.of Calif., pref. A (go.). •20o. Feb. 1 *Holders of rec. Jan. 15
Pao.
Finance
15
rec.
Jan.
of
Feb.
*Holders
*8734e
Preferred (guar.)
•181to Feb. 1 *Holders
Preferred C (guar.)
*Holders of rec. Jan. 20
•1/.1 Feb.
of roe. Jan. 15
Gardner-Denver Co., prat. (guar.)
*Holders
1
Feb.
'1734c
Preferred D (guar.)
81.50 Feb. I Holders of roe. Jan. 15
General Capital Corp. (No. I)
Si Feb. 1 "Holders of roe. Jan. 20
Holders of rec. Jan. 180 Package Machinery, let pref.(goat.)... el
$I
Feb.
General Cigar Co.,Inc.. Dom.((in.)
Feb. 1 Holders of roe. Jan. 21
11s
Holders of men Feb. 20a Penman's Ltd., preferred (guar.)
134 Mar.
Preferred (gull.'.)
Feb. 1 Holders of rect. Jan. 15a
7140.
40c Jan. 2 Holders of reo. Dec. 18a Penn Traffic
General Electric, common (guar.)
Jan. al *Holders of rec. Doe. 31
oil
150 Jan. 2 Holders of rec. Dec. 18a Philadelphia Bourse, corn.(gnat.)
Special stock (guar.)
Jan.
$1 *Holders of roe. Dee. 31
•$1.50
(guar.)
Preferred
15a
750 Feb. I 11./ders of ree. Jan.
General Foods Corp., corn.(guar.).
Feb. I Holders of rec. Jan. 154
$1
, Feb. 1 Holders of roe. Jan. 15a Philadelphia Insulated Wire
75
General Mills, corn. (guar.)
19/ Feb. 1 Holders of roe. Jan. 20a
1
4a Phillipe-Jones Corp., prof.(guar.)
General Motors Corp.,$5 prof.(g oar.)- 81.25 Feb. I Holders of rec. Jan 22
*50o. Apr. 1 *Holders of rec. Mar.25
Plume&erAtwood Mfg.(guar.)
*Holders of rec. Jan
•$1.54 Feb.
General Public Say..$8 prof.(go.)
JulY 1 *Holders of rec. June 25
050e.
Quarterly
•$1.37 Web. l*Holders of rec. Jan. 22
$5.50 preferred (guar.)
•50o. Oct. 1 *Holders of roe. Sept.25
Quarterly
750 Feb. 1 Holders of rec. Jan. 15
Feb. 1 *Holders of roe. Jan. 21
General Stockyards Corp.. corn.(guar.)_
'Sc.
(guar.)
Corporation
Process
$1.5I Feb. 1 Holders of roe. Jan. 15
$8 preferred (guar.)
800. Feb. 15 Holders of rec. Jan. 250
Procter & Gamble Co.,cam.(goat.)
General Tire & Rubber. corn.(guar.).- •25c Feb. 1 *Holders of rec. Jan. 20
111.75 Feb. 10 *Holders of rec. Jan. 30
(guar.)
Corp.
Utility
public
56
Jan.
31.26 Feb. I Holders of roe.
Feb. 1 *Holders of rec. Jan. 20
Gillette Safety Razor. prof. (guar.)
*31
Extra
.0300 Jan. 30 *Holders of rec. Jan. 15
Doe. 31
Gilmore 011 Co.. Ltd., (guar.)
prof.(go.).... •$1.25 Feb. 1 'Holders of roe.
ISZ Feb. 1 Holders of rec. Jan. 150 Public Utility Invest.. $5
(umbel Bros . net (guar )
750. Feb. 15 Holders of rec. Jan. 236
(guar.)
Inc.
Pullman,
9a
Jan.
82lat Feb. 1 Holders of rec.
•1zi Feb. 2 *Holders of rec. Feb. 1
Gold Dust Corp., corn.(gnu.)
(guar.)
Quaker Oats, preferred
•100 Feb. 1 *Holders of rec. Jan. 20
"Holders of no. Jan. 20
•750. Feb.
Goldsmith (P.) Sons(guar.)
I5a Raymond Concrete Pile, pref.(goat.)
Holders of rect. Jan. 21
Goodyear Tire & Rub.. writ.(gnat.).... 250. Feb. 1 Holders of roe. Jan.
1500. Feb.
IH Feb. 1 Holders of rec. Jan. 8e Reed (C. A.) Co.. class A (guar.)
Holders of rec. Jan. 21
Gotham Silk Hosiery, pref. (guar.)
Feb.
1214c
Class B (guar.)
Areas
Mining
Gold
*Holders of roe. Jan. 15
Government
*$1.50 Feb.
Republic Service. prof.(goat.)
•45
Jan 29 'Holders of rec. Doe 31
of rec. Jan. 15
*Holders
Feb.
Am. dep. rata. for registered shares
•500.
Rich Ice Cream (guar.)
*45
Feb. 18 •Holders of roe. Doe 31
Am. dep. rcta for old reg. shares
*Holders of roe. Jan. 15
"31.50 Feb.
Jan. 15a Riverside Cement, pref. (guar.)
"Holders of roe. Jan. 15
Granby Cone. Min. Smelt. & Pow.(go ) 1214c Feb. 1 Holders of roe.
Feb.
•10e
(guar.)
n
ie
T
t
rm
..
r
aros
i
e
t
mm.
ef
1
.1.
oe.
20
roe.
Jan.
*Holders of roe. Jan. 15
Grand Rapids Varnish (stock dividend) *e40 Feb. 1 *Holders of
• 31.825 Feb.
Preferred
300 Feb 2 Holden of rec. Jan. dala
Hall(W. F.) Printing (Qar.)
*Holders of rec. Doe. 21
Rose's 5-10 A 25 Ct. Stores, pf.(go.).... '134 Feb.
1.14 Jan. 30 Jan. 23 to Jan. 31
Halle Bros.. 814% prof. (guar.)
*Holders of rea. Dec. 31
Feb.
*500.
(qu.)_
corn.
Ltd..
Co..
Car
Motor
Russell
*250 Feb. 5
•1% Feb.
*Holders of rec. Dec. 31
Hawaiian Sugar (monthly).
Preferred (guar.)
•134 Feb. 15 *Holders of roe. Feb. 4a
*Holders of too. Jan. 20
Hercules Powder. pref. (guar.)
Feb.
.25e.
Mfg.
(guar.)
25a
Ruud
roe.
Jan.
of
15
Holders
Feb.
$1.50
Hershey Chocolate. corn. (guar.)
Holders of roe. Mat. 105
2
Mar.
15e.
Feb. 15 Holders of roe. Jan. 250 St. Joseph Lead CO.((War.)
$I
Convertible preferred (guar.)
Holders of rec. Jan. 20
134 Feb.
Feb. 15 Holders of reo. Jan. 250 St. Lawrence Flour Mills. prof.(gust.)
II
Convertible preferred (extra)
Holders of moo. Jan. 154
Feb.
250.
Assn.
(guar.)
22
Salt
Creek
Producers
Jan.
reo.
Jan, 29 Holders of
of roe. Mar. 15
"Holders
Hibbard. Spencer. Bartlett Co.(mthly) 150
3
Mar.
San Francisco Rem. Loan Man.(guar.) '87%c
of rec. Feb. 19
Holders
150
26
Feb.
Monthly
•114 Feb. 1 •Holders of roe. Feb. 1
Savage Arms, 2d pref.(guar.)
15e Mar.25 Holders of rec. Mar. 18
of rec. Jan. 15
Holders
Monthly
Feb.
$1.50
(gnat.)
corn,
Savannah Sugar Refit..
Sc. Jan. 28 Holders of roe. Jan. 14
Holders of reo. Jan. 15
Hollinger Consol. Gold Mince
1% Feb.
Preferred (guar.)
•87.14e Apr. 1 *Holders of reo. Mar. 21
Holders of rec. Jan. 166
Home Credit (Baltimore), Prof
Feb.
1%
pref.
A
Paper,
20a
Scott
(guar.)
Jan.
rec.
of
650. Jan. 25 Holders
Holden; of reo. Jan. lea
Homestake Mining (monthly)
114 Feb.
Preferred It (guar.)
62hc Feb. I Holden of rec. Jan. lie
Horn & liardart(N. Y.). corn (guar.)
1214c Feb. 1 Holders of rec. Jan. 31
Seaboard Surety Co. (guar.)
'134 Feb. 1 *Holders of rec. Jan. 23
of roe. Jan. 80
Holders
Horne (Joe.) Co..6% prof.(goat.)
Feb.
He
82
&
Co.(goat.)
Bears, Roebuck
8031 Feb. 1 Holders of roe. Jan. 15
Holders of rec. Jan. 15
Humberstone Shoe, Ltd. (guar.)
75e. Feb.
Seeman Brothers, Inc., corn.(guar.).___
260 Feb. 15 Holders of roe. Jan. 22
Indiana Pipe Line Co. (guar.)
25 *Holders of rec. Jan. 15
Jan.
'8754c
&
prof.
Lock
1
Segal
Feb.
Hardware.
roe.
of
Holders
250. Mar. 1
Industrial & Power Securities (goat.)...
•350. Feb. 1 *Holders of roe. Jan. 20
Selby Shoe,common (guar.)
25e. June 1 Holders of ree. May 1
Quarterly
•114 Feb. 1 *Holders of reo. Jan. 20
Preferred (guar.)
250. Sept. 1 Holders of roe. Aug. 1
Quarterly
Feb. 1 *Holders of roe. Jan. 20
•$1.75
1)
1
(No.
Inc..
Servel,
preferred
250. Deo. 1 Holders of reo. Nov.
Quarterly
*51.75 May 2 *Holders of roe. Apr. 20
(guar.)
Preferred
25
roe.
Jan.
of
*Holders
30
Jan.
•100.
Nay.
Steam
Inter-Island
*Holders of rec. July 20
(monthlY)-*51.75 Aug.
Preferred (guar.)
62140 Feb 1 Holders of tee Jan. 21
Internat. Cigar Machinery (guar.)
*Holders of rec. Oct. 20
*51.75 Nov.
Preferred (guar.)
134 Feb. 1 Holders of roe. Jan. 2a
Internati Nickel of Canada, pref. (go.)
Holders of rec. Jan. 15
Feb.
134
Service Stations, Ltd., pref. A (go.)
*8Ho. Feb. 1 Holders of reo. Jan. 2
Holders of roe. Jan. 15
7% pref. ($5 par) (guar.)
Feb.
134
(guar.)
preferred
16a
6%
1 94 Feb. 1 Holders of roe. Jan
Holders of roe. Jan. 150
International Printing Ink. prof (guar.)
Feb.
8714e
Sharp & Dohme, Inc.. cony. pref.(go,)
500. Feb. 1 Holders of rev. Jan. 15
of roe. Feb. 15
*Holders
International Shoe. pref. (monthly)
*354 Feb. 1
Silver Rod Stores. pref
•50e. Mar. 1 Holden of roe. Feb. 15
Holders of roe. Jan. 204
Preferred (monthly)
Feb.
1%
(guar.)
pref.
Simpsons. Ltd.,
*500 Apr. 1 Holders of roe. Mar. 15
of roe. Feb. 16
Holders
Preferred (monthly)
1
Feb.
2
Sinclair Consol. Oil, pref.(guar.)
*50c. May 2 Holders of reo. Apr. 16
Preferred (monthly)
Feb. 1 *Holders of reo. Jan. 21
Smith Agricultural Chem.,con].(goat.) •1234o Feb. 1 *Holders of roe. Jan. 21
*50c. June 1 Holders of rec. May 14
Preferred (monthly)
*134
Preferred (guar.)
*50. Feb. 1 Holders of rec. Jan. 15
Jantzen Knitting Mills, corn
1% Feb. 15 Holders of rec. Jan. 164
Solvay Amer. Invest., pref.(guar.)
'134 Feb. 15 Holders of rec. Doe. 23
Journal of Commerce Corp., pf.(go.)
•114 Mar. 15 "Holders of roe. Mar. 8
Sparks, Withington Co.. prat. (goat.)
ti June 15 *Holders of roe. June 8
Kaufmann Dept. Stores,corn.(guar.).- 25c. Jan, 28 Holders of rec. Jan. 9
Preferred (guar.)
Kayser (Julius) & Co., corn.(guar.).- 250. Feb. 1 Holders of rec. Jan. I5a
'3754c Jan. 25 *Holders of tee. Dec. 31
Spitzer Properties. prof. (guar,.)
•134 Feb. 1 Holders of no. Jan. 20
Klein (D. Emil) CO., prof. (guar.)
Feb. I *Holders of rec. Jan. 15
*25o.
corn.
(guar./Squibb (E. R.)& Sow.
•134 Feb. 1 *Holders of rec. Jan. 16
Knudsen Creamery, class A dr B (guar.) •37 He Feb. 20 Holders of rec. Jan 31
(guar.)
Preferred
200
Jan.
rec.
of
1
Holders
250.
Feb.
Kress(S. H.)& Co..corn.(guar.)
•3714c Feb. 15 "Holders of roe. Feb. 6
Stanley Works, pref. (guar.)
*150. Feb. 1 *Holders of roe. Jan. 20
14334c Feb. 1 Holders of rec. JIM. 7
Special preferred (guar.)
Steel Co. of Canada. corn.& pref.(guar.) .2714c
Jan. 23
Kroger Grocery & Baking-class A (mtbly.) •1y6 Feb. 1 *Holders of roe.
Cement,
Port.
Superior
20
Jan.
roe.
of
134 Feb. I Holders
Feb. 1 *Holders of rec. Jan. 15
7% second preferred (guar.)
Suburban Eleo. Secure., 1st pref.(go.)..
Jan. 15a
roe.
of
Holders
1
41.75 Feb. 1 *Holders of roe. Jan. 20
25e.
Feb.
Lamson & Sessions. Prof.(guar.)
(guar.)
15
Sweets Co. of America. Ino.
*50o. Feb. 15 *Holders of roe. Feb. 5
$1.50 Feb. 15 Holders of roe. Jan. 31
Landis Machine, common (guar.)
Swift International
134 Feb. 1 Holders of rec. Jan. 15
r15c. Feb. 1 Jan. 17 to Jan. 154
Lane Bryant, Inc., pref. (guar.)
(guar.)
Mines
Gold
ghes
Teak-Hu
Jan.
roe.
of
Holders
194 Feb. 1 Holders of roe. Jan. 21
1
Feb.
350.
Lawbeck Corp., pref. (guar.)
Telautograph Corp., corn.(guar.)
•40o. Feb. 15 *Holders of rec. Feb. 5
90o. Feb. 15 Holders of roe. 43an.306
Letcourt Realty Corp.. corn.(gust.)
Thatcher Mfg. cony. pref.(guar.)
15
Feb. 15 Holders of roe. Jan. 166
Limestone Products. 7% pref.(guar.). - '82540 Apr. 1 *Holders of rec. Mar.15
Tide Water 011. Pref. (guar.) (gnat.).. 154
250. Mar. 1 Holders of rec. Feb.
Lindsay (C. W.)& Co., Ltd., corn.(go.)
20o. Feb. 15 Holders of roe. Jan. 256
Products Corp.. al. A
Tobacco
15
Feb.
roe.
of
Holders
1
Mar.
134
(Sc. Feb. 15 Holders of reo. Jan. 256
Preferred (guar.)
Class A (extra)
50o. Feb. 1 Holders of rec. Jan. 20a
Liquid Carbonic Corp., corn.(guar.)-
JAN. 23 1932.]
FINANCIAL CHRONICLE
Per
When
Cent. Payable.
Name of Company.
Books Closed.
Days Inclusive.
Miscellaneous (Concluded).
Trustee Standard Invest. Shame, C. _ *9.2o. Feb. 1
Class D
*90. Feb. 1
Tung Sol Lamp Works,coin.(qun).- *25e. Feb. 1 *Holders of rec. Jan. 20
Preferred (guar.)
*75e. Feb. 1 *Holders of roe. Jan. 20
Union Oil Associates (quar.)
*34o Feb. 10 *Holders of rec. Jan. 18
Union 011 of Calif. (quar.)
350 Feb.d10 Holders of rec. Jan. 186
United Biscuit. corn. (quar.)
500 Mar. 1 Holders of rec. Feb. 160
Preferred (guar.)
154 Feb. 1 Holders of rec. Jan. 160
United Cigar Storm of America. pt.(1u.) 1
Feb. 1 Holders of rec. Jan. 166
United Ins. Trust Sin., set. F reg----. 15.080 Feb. 1 *Holders of rec. Dee. 31
Series F coupon
• 15.08c Feb. 1
United Piece Dye Works, corn.(guar.).25o. Feb. 1 Holders of rec. Jan. 15a
United Verde Extension Mining (qua?.). 25o. Feb. 1 Holders of rec. Jan. 2a
U.S.& Foreign Securities, 1st pref.(qu.) $1.50 Feb. 1 Holders of rec. Jan. 236
Universal Leaf Tobacco, MIL (quar.)___
750. Feb. 1 Holders of rec. Jan. 19a
Universal Winding, pref. (qua?.)
*154 Feb. 1 *Holders of roe. Jan. 20
Urban Mtge. Co., Ltd., pref
Jan. 25 *Holders of rec. Dee. 31
Victor Talking Machine, corn. (quar.)_ *41
Feb. 1 *Holders of rec. Jan. 13
•1.4 Feb. 15 •Holders of rec. Feb. 1
West Va. Pulp & Paper, Prof.(quar.).
Westinghouse Air Brake(quar.)
500. Jan. 30 Holders of rec. Dee. 31a
Westinghouse Elec. & Mfg.. corn.(qu.) 62%e Jan. 30 Holders of roe. Jan. 186
Preferred (quar.)
8734e Jan. 30 Holders of rec. Jan. 18a
Weston (Geo.), Ltd., pref. (quar.)
Feb. 1 Holders of roe. Jan. 20
WII-Low Cafeterias, pref. (quar.)
Feb. 1 *Holders of rec. Jan. 21
•41
White Rock Mineral Springs, corn.(qu.)
Apr. 1 Holders of roe. Mar. 15
First preferred (quar.)
Apr. 1 Holders of rec. Mar. 15
Second preferred (guar.)
5
Apr. 1 Holders of rec. Mar. 15
Wilcox-Rich Corp., class B
7Sio Jan. 30 Holders of rec. Jan. 206
Wilson Line, Inc., pref
314 Feb. 15 Holders of rec. Jan. 15
Woolworth (F. W.) Co.(quar.)
*60c. Mar. 1 *Holders of rec. Feb. 10
Wrigley (Wm.), Jr.,(monthly)
25c. Feb. 1 Holders of rec. Jan. 20a
•1,4 Apr. 1 *Holders of rec. Mar. 19
Wurlitzer(Rudolph) Co..7% 14.(1111.)
7% preferred (quar.)
•I M July 1 *Holders of rec. Jan. 19
•From unofficial sources. t The New York Stock Exchange has ruled that
stock will not be quoted ex-dividend on this date and not until further notice.
The New York Curb Exchange Association has ruled that stock will not be quoted
ea-dividend on this date and not until further notice.
a Transfer books not cloeed for this dividend.
d Correction. e Payable in stock.
/Payable in common stock. g Payable In scrip. h On account of accumulated
dividends. I Payable in preferred stock.
I Andre Citroen Corp. dividend is 32.42 francs.
m Pittsburgh & Lake Erie dividend is payable to holders of rec. Dec. 28, but
ex-dividend on New York Curb Market on Dec. 24.
n Distillers Co. My. is 1 shilling 6 pence per share.
o British American Tobacco final dividend is 8d. Per share and the interim dividend 10d. per share. Transfers received up to Jan. 2 will be In time to enable
transferees to receive dividends.
p American Cities Power & Light class A div. is 75c. cash or 1-32d. share of
class 13 stock.
o Columbia Gas & Electric corn, stock dividend Is payable in 45 preferred.
r On Central West Public Service pref. A stock which has been outstanding lest
than two years 134% will be paid : on stock two years after cony. 2% will be paid.
Central West Public Service class A 215 %clic% will be paid on class A stock or
upon notice to company In cash at rate of 37340. Per share.
Payable in Canadian funds.
ts Payable In United States funds.
•Burma Corp. divdend Is one anna a share and a bonus 01 005 anna, tree of British
Income tax and less expenses of depositary.
to Lees deduction for expenses of depositary.
z Associated Gas & Elec. class A dividend payable 1-80th share class A stock, or
at option of holder. I-800th share of $5 pref. stock. The $4 preferred will be paid
1-70th share of $5 preferred unless holder notifies company on or before Jan. 11 1932
of his desire to take cash-41:the 45 pref. Is payable in cash or 1-70th share 45 pref.
Middle West Utilities dividend on 46 pref. is payable $1.50 cash
or 3-80th5
share of common stock.
Weekly Return of New York City Clearing House.
Beginning with March 31 1928, the New York City Clearing
House Association discontinued giving out all statements
previously issued and now makes only the barest kind of
a report. The new returns show nothing but the deposits,
along with the capital and surplus. The Public National
Bank & Trust Co. and Manufacturers Trust Co. are now
members of the New York Clearing House Association,
having been admitted on Dec. 11 1930. See "Financial
Chronicle" of Dec. 31 1930, pages 3812-13. The figures
given below therefore now include returns from these two
new members, which together add 835,750,000 to the capital,
$30,072,800 to surplus and undivided profits, $200,017,000
to the net demand deposits and 896,254,000 to the time
deposits. We give the statement below in full:
STATEMENT OF MEMBERS OF THE NEW YORK CLEARING
HOUSE
ASSOCIATION FOR THE WEEK ENDED SATURDAY JAN. 16
1932.
Clearing House
Members.
*Capital.
*Surplus and Net Demand
Undivided
Deposits.
Profits.
Average.
$
Bank of NY & Trust Co _
6,000,00
Bank of Manhattan Tr Co
22,250.000
National City Bank
124,000,
Chemical Bank & Tr Co_. 21,000.
Guaranty Trust Co
90.000,000
Chat Phen N Bk & Tr Co. 16,200.000
CentHanover B & T Co
21.000.000
Corn Ezell Bank Trust Co
15,000.000
First National Bank
10,000.
Irving Trust Co
50,000.000
Coral Bank & Trust Co
4,000.000
Chase National Bank
148,000,00
Fifth Avenue Bank
500,000
Bankers Trust Co
25,000,000
Title Guar & Trust Co.__
10,000,000
Marine Midland Trust Co 10.000,000
Lawyers Trust Co
3,000,000
New York Trust Co
12,500,000
Com'l Nat Bk & Trust Co.
7,000,000
HarrimanN B & Tr Co__
2,000,000
Public N B dx Trust Co__.
8,250,000
Manufacturers Trust Co_ 27,500,000
Clearing Non Member.
Mechanics Tr, Bayonne--
500,000
Time
Deposits.
Average.
1,
9,730,700
78.919,000
11,851,000
44,436,700 237,252,000 38,931.000
101,347,500 a988,694.000 173.979,000
44,758,800 209,556,000 22,840.000
194,959,000 b779.732,000 78,697,000
15,118,400 106,757,000 22,374,000
79,103.200 417,685,000, 43,547.000
22,549,500 172,077,000 28,029,000
112,537,2
288,313,000 18,148.000
75,506,7
325,928,000' 38,936.000
6,750,200
26,408,000
3,581.000
143,075,
c986,401,000 101,494,000
3,405,800
2,174,000
75,020,400
31,994.000,d403,262,00
42,811,000
21,208,100
35,485,000
820,000
7,019,000
39,019,000
4,784.000
2,400,000
13.400,000
1,372,000
26,559,200
166.062.000, 21,212,000
41,311,000:
9,235,600
2,124,000
2,863,200
26,323,000,
4,163,000
7,876.400
34,526,000, 28,652,000
22,196,400 165,491.000 67,692,000
652,400
2,209,000,
4,913,000
Totals
633,700,000 .028,309,400 5,576,804,000 763,034,000
• As per official reports: National, Dee.31 1931 State, Deo,31 1931 Trust Companiee, Dec. 31 1931.
Included deposits In foreign branches as follows: (a) 4222,609,000 (b)$56.847.000
(e) $42,314,000 (d) 421,937,000.
637
The New York "Times" publishes regularly each week
returns of a number of banks and trust companies which are
not members of the New York Clearing House. The Public
National Bank & Trust Co. and Manufacturers Trust Co.,
having been admitted to membership in the New York
Clearing House Association on Dec. 11 1930, now report
weekly to the Association and the returns of these two banks
are therefore no longer shown below. The following are
the figures for the week ending Jan. 15:
INSTITUTIONS NOT IN THE CLEARING HOUSE.WITH THE CLOSING OF
BUSINESS FOR THE WEEK ENDED THURSDAY. JAN. 15 1982.
NATIONAL BANKS-AVERAGE FIGURES.
Loans,
Other Cash Res. Dep., Dep. Other
Disc. and Gold. Including N. Y. and Banks and
Gross
Investments.
Bank Notes Elsewhere. Trust Cot. Deposits.
1,000
BrooklynPeoples Nat'l- -
5.000
6,508,000
$
$
83,267 1,469,829
$
$
ManhattanGrace National_ 17,684,219
124,000
412,000
$
$
845,963 14,754,257
20.000
5,850,000
TRUST COMPANIES-AVERAGE FIGURES.
Loans, Mscounts and
Investments.
Cash.
Res. Dep., Dep. Other
N. Y. and Banks and
Gross
Elsewhere. Trust Cos. Deposits.
ManhattanEmpire
Fulton
United States
$
$
$
62.518.800 *3,690,300 8,232,800
17,204,400 *2,562,900 1,774,900
67,948,769 7,774.407 17,653,199
BrooklynBrooklyn
Kings County
97,438.000
24,842,118
Bayonne, N. J.Mechanics
7,479,049
2,798,000 24,150,000
1,806,406 3,894.493
302.634
447,852
$
$
2,453,700 64.619.600
746,400 17.684.500
65,977,829
390,000 101,450,000
23,864.722
192,010
7,346,874
•Includes amount with Federal Reserve as follows: Empire, $2,268,400 Fulton.
$2,400,700.
Boston Clearing House Weekly Returns.-In the following we furnish a summary of all the items in the Boston
Clearing House weekly statement for a series of weeks:
BOSTON CLEARING HOUSE MEMBERS.
Week Ended
Jan. 20
1932.
Capital
Surplus and profits
Loans,(Walla & lnvestla_
Individual deposits
Due to banka
Time deposits
United States deposits_ _.
Exchanges for Cig. House
Due from other banks...
Ree've in legal depoeltles
Cash In bank
iz•• In excesn in F.R.Elk_
Changesfrom
Previous
Week.
Wee* IDuted
Jan. 13
1932.
Week Ended
Jan. 6
1932.
4
$
4
$
91,77.5,000 Unchanged
91,775.000
91,775,00
82,328,000
-182,000
82.519,000
84.190,00(
918,398,000 -2,886.000 922,284.000 903.548.00(
558,128,000 +6,827,000 551.301.000 570.629.00(
134,223.000 -5,065.000 139.288.000 144.937.00(
210,873,000 -1,803.000 212.676.000 207.743.00(
4,252,000
-28.000
4,424.000
5.289.001
14,591 000
+540.000
14,051,000
26,555.001
71,784.000
-872,000
70,912.000
80.078,001
75.063,000
-493,000
75,556.000
88,814,001
11,670.000
--538.000
12.208,000
13,473.001
5.995.000 +1.689.000
4.306.000
17.599.001
Philadelphia Banks.-Beginning with the return for the
week ended Oct. 11 1930, the Philadelphia Clearing House
Association began issuing its weekly statement in a new
form. The trust companies that are not members of the
Federal Reseirve System are no longer shown separately,
but are included with the rest. In addition, the companies
recently admitted to membership in the Association are
included. One other change has been made. Instead of
showing "Reserve with Federal Reserve Bank" and "Cash
in Vault" as separate items, the two are combined under
designation "Legal Reserve and Cash."
Reserve requirements for members of the Federal Reserve
System are 10% on demand deposits and 3% on time deposits, all to be kept with the Federal Reserve Bank. "Cash
in Vaults" is not a part of legal reserve. For trust companies not members of the Federal Reserve System the
reserve required is 10% on demand deposits and includes
"Reserve with Legal Depositaries" and "Cash in Vaults."
Beginning with the return for the week ended May 14 1928,
the Philadelphia Clearing House Association discontinued showing the reserve required and whether reserves held are above or
below requirements. This practice is continued.
Week Ended Changes from
Jan. 16
Previous
1932.
Week.
Week Ended
Jan. 9
1932.
Week Ended
Jan. 2
1932.
$
4
$
$
77,052.000 Unchanged
Capital
77,052.000
77.052,000
218,419.000 -3,246,000 221,665.000 227,100,000
Surplus and profits
Loans, discts. and invest_ 1,232,001,000 -7,074,000 1,239,075,000 1,241.892.000
22,585,000 -4,127,000
Exch. for Clearing House
26,712,000
29,887,000
86,998,000 -5,122,000
Due from banks
92.120,000 103,488,000
140,385,000 -3,784,000 144.169,000 14
Bank dePosits
0,544.000
638.361,000 -8,742,000 647,103.000
Individual deposits
267,102,000 -3,126,000 270,228,000 665,865,000
Time deposits
1,045.848,000 -11,952,000 1,061.500,000 1 247,018.000
Total deposits
,070,427,000
92,108,000
Res've with F.R.Bank
-801,000
92,909.000
94.195,000
[vol.. 134.
FINANCIAL CHRONICLE
638
Weekly Return of the Federal Reserve Board.
The following is the return issued by the Federal Reserve Board Thursday afternoon, Jan. 21, and showing the condition
of the twelve Reserve banks at the close of business on Wednesday. In the first table we present the results for the System
as a whole in comparison with the figures for the seven preceding weeks and with those of the corresponding week last year.
The second table shows the resources and liabilities separately for each of the twelve banks. The Federal Reserve Agents'
Accounts (third table following) gives details regarding transactions in Federal Reserve notes between the Comptroller and
Reserve Agents and between the latter and Federal Reserve banks. The Reserve Board's comment upon the returns for the
latest week appears on page 590, being the first item in our department of "Current Events and Discussions."
COMBINED RESOURCES AND LIABILITIES OF THE FEDERAL RESERVE BANKS AT TIRE CLOSE OF BUSINESS JAN. 20 1932.
21 1931.
Jan. 20 1932. Jan. 13 1932. Jan. 6 1932. Dec. 30 1931. Dec. 23 1931. Dec. 16 1931. Dec. 9 1931. Dec. 2 1931. Jan.
$
$
$
$
S
$
$
$
$
RESOURCES.
1,763,219,008
Gold with Federal Reserve agents
2,0.56,234,000 2,074.369.000 2.074,541,000 2,090,372,000 2.047.722,000 1,923,146,000 1,808.398.000 1,747,581,000
35,668,000
89.711,000
64,322,000
58,577,000
61,522,000
58.077.000
58,342,000
58,498,000
Gold redemption fund with 11. S. Treas..59,493.000
Gold held exclusively agst. F.R.notes- 2,115,727,000 2,132,711,000 2,133,039,000 2.148.449,000 2,106.299.000 1,984,668,000 1,872,718,000 1,817,292,000 1.798.887,000
421,588,000
Gold settlement fund with F. It. Board
363,410,000 385,583.000 358,436,000 335,570,000 360,667,000 362,042,000 .397,296,000 361,428.000 853,673,000
Gold and gold certificates held by banks- 526,777.000 483,542,000 494.077,000 503,545,000 513,895.000 635,334,000 699.104.000 762,850,000
3.005,914,000 3.001,836.000 2.985,552,000 2,987,584.000 2,980,881,000 2,982,044,000 *2959118,000 2,941.570,000 3,074,148,000
Total gold reserves
189,717,000 180,045,000 173.635,000 167,459,000 147,571,000 162.586,000 167,855,000 166,063,000 180,136,000
Reserves other than gold
3,195,831,000 3,187,881,000 3,159,187,000 3,155,023.000 3,128,432,000 3.144,630,000 *3138973,000 3,107,633,0003,254,284,000
Total reserves
85,071,000
65.313,000
87,483,000
71.670,000
61,560.000
74,610.000
83.085,000
78.415.000
Non-reserve cash
76,387.000
Bills discounted:
79,612,000
438,545,000 437,348,000 451,987,000 594,833,000 561.374.000 358,117,000 377,525,000 363,707.000 150,273,000
Secured by U.S. Govt. obligations
380,441.000 380.993,000 388.229,000 420.300.000 349,820.000 339,791,000 347,657,000 353,860,000
Other bills discounted
229,885,000
818.988,000 818,341,000 818,216.000 1,024,133,000 911,194,000 897.908,000 725,162,000 717,567,000 151,625,000
Total bills discounted
188,041,000 213.801,000 275,300,000 328.975,000 257,351,000 307,077,000 389.219,000 423,407,000
Bills bought in open market
U. 8. Government securities:
96,632,000
316,484,000
320.213,000 320.287,000 330,199,000 344,626,000 318,655.000 317.738.000 317.688,000
Bonds
19,950,000 181,452,000
19,950.000
30,549,000
30,843.000
20.558,000
28,058,000
30.598.000
33,557,000
Treasury notes
197.500,000
Special Treasury certificates
346,507,000
397,698.000 400,712.000 405,197,000 427,759.000 411,509.000 369,898,000 379,557,000 380.587,000
Certificates and bills
624,591,000
717.021.000
717,193,000
Total U. S. Government securities
751.488,000 751.575,000 765.945,000 803.228.000 758,222,000 905.694.000
29,972,000
30.232.000
28,844,000
30.672,000
30,880,000
30.454,000
29,732.000
Other securities
650,000
36.846,000
Foreign loans on gold
1.888,227,000 1.006,751,000
1.861,568.000
1,941,351.000
1.888,311,000
1,957,221,000
2,185,216.000
1,813.449.000
1.795,341.000
Total bills and securities
712,000
8.725.000
8.724.000
8,774,000
8.662.000
8,682,000
8.815.000
8.663.000
8,597.000
Due from foreign banks
26,194,000
15.694,000
15,828,000
15,858,000
21,728,000
20,056.000
17,871.000
18.368,000
19,137.000
Federal Reserve notes of other banks
507,31.2,000
451.277,000
410.732,000
475.253,000
574.585,000
443,521,000
455,594,000
439.210,000
431.387,000
Uncollected items
58,034,000
59,501,000
59,475,000
59.501.000
57.770.000
59,581,000
59,572,000
57.811.000
57,813,000
Bank premises
19,032,000
41,102,000
39,674,000
33,752,000
37,021,000
33,931,000
39,151,000
38.265,000
36,371,000
All other resources
4,957,390,000
5.637,445,000
*5600482,000
5,620,664.000 5.637.728.000 5.716.331,000 5,98.5,820,000 5,728,855,000 5.843.080.000
Total resources
LIABILITIES.
1,517,843,000
2,642,140.000 2,635.786,000 2,651,026,000 2,813.104.000 2.681,208,000 2,528,332,000 2.484.892,000 2,478,130,000
F. It. notes in actual circulation
Deposits:
2.088.008.000 2.073.454,000 2,440,730,000
2,167.802,000
2,036,072.000
088,000
1,994.347,000
2
2,322.787.000
001
1,971,564,000
account
-reserve
banks
Member
22,650,000
22.333,000
2.870,000 .28,595.000
29 893.000
32,638,000
00
0
50.705.000 '56,480.
28,148,000
Government
6,040,000
64,845,000
75,129,000
77.259,000 107,823,000 101.402.000 117.674.000 137.138.000
81.830,000
Foreign banks
18,734,000
25,451,000
27.221,000
36,754,000
38,809.000
30,598.000
27,996.000
29,358.000
26,385,000
Other deposits
2,488,154,000
2,105,925,000 2.130.110.000 2,169,419,000 2,480.109,000 2,195,958,000 2.308.828.000 '2259498.000 2.258.374.000 494,734,000
Total deposits
428,687,000 427,469.000 451,51.6.000 435.291.000 415,866,000 550,981,000 400,648,000 443.278,000 169,712,000
Deferred availability items
183,589,000
160,947.000
180,670,000
180,805,000
160,553,000 160.750,000
159.459,000 159.836.000
Capital paid in
274,636,000
259.421.000 259.421.000 259.421,000 274.638,000 274,838,000 274.636,000 274,638,000 274,636.000
Surplus
12,311,000
19,438,000
19,861,000
19,833,000
24,344,000
22,127,000
20,439,000
25.126.000
25,032,000
All other liabilities
4,957,390,000
5,620,664,000 5.637.728.000 5.716,331.000 5.985.820.000 5,728,855,000 5,843.080,000 *5800482,000 5.637,445.000
Total liabilities
Ratio of gold reserve to deposits and
76.7%
62.1%
62.5%
61.6%
61.9%
58.6%
61.3%
62.9%
62.8%
F. R. note liabilities combined
Ratio of total reserves to deposits and
81.2%
85.6%
66.1%
65.5%
81.9%
65.0%
64.4%
66.9%
67.3%
F. R. note liabilities combined
Contingent liability on bills purchased
134.053.000 448,6617.008
285,299.000 285.141,000 269,544.000 248,529,000 238.848,000 214.448,000 168.488.000 n:c
for foreign correspondents
8
$
$
$
$
$
$
3
$
Maturity Distribution of Rills and
Short-Term Securities147,597,000
632,804.000 631,648.000 638.235.000 851.558,000 750,539,000 540,325,000 581.477,000 544.485,000
1-15 days bills discounted
19,316,000
52.002,000
49.926,000
48.201,000
44.483,000
39.895.000
41.291.000
42.342.000
44,002.000
16-30 days bills discounted
29,716,000
65,621,000
58,284.000
49,605.000
64.994.000
61.106,000
54.161,000
68,043,000
72,553,000
31-60 days bills discounted
20,414,000
33,420.000
35,641.000
43.552.000
50,218,000
46.048,000
51.407,000
54,810,000
48,751,000
61-90 days bills discounted
12,847,000
20.053.000
19.854,000
18,22.5,000
20.288,000
20,167,000
19,157,000
21,498.000
discounted
20,873,000
bills
Over 90 days
717,567,000 229,885.000
818.988,000 818,341,000 818.228.000 1.024,133,000 911,194,000 697.908,000 725,182.000
Total bills discounted
71.689.000
84,417,000 137.297.000 192,124,000 148,004,000 159.861.000 188,126.000 171.720.000
79,628,000
1-15 days bills bought in open market-27,266.000
87.580.000 128,242,000 139,182,000
56,051.000
64.096.000
70.418,000
40,361,000
24.205.000
16-30 days bills bought in open market-21,202,000
58,204.000 100.835.000
29.226.000
30,306.000
47,482,000
50,940,000
49,527.000
50,946,000
31-60 days bills bought in open market-29.926.000
11,331.000
19,980.000
29.204.000
24,268,000
19,056,000
19,161,000
38,797,000
32,697,000
61-90 days bills bought in open market-1,242,000
539.000
706.000
678,000
759,000
722.000
950,000
567.000
699,000
Over 90 days bills bought in open market
Total bWs bought in open market
1-15 days U.S. certificates and bills.16-30 days U. S. certificates and bilis__
31-60 days U.S.certificates and bills
61-90 days U.S. certificates and bills__
Over 90 days certificates and bills
188,041,000
28,450,000
54,836,000
103,613.000
8,050,000
202.749.000
213,801.000
20.950.000
40.225.000
61.429,000
58,344,000
209.764.000
275,306,000
6.500.000
23.450.000
99,154,000
88,345.000
207,748.000
328,975.000
28.500,000
20.950.000
77,810.000
86,139,000
214,354,000
257,351,000
13,152,000
2.000.000
68,287,000
117,662,000
210.408,000
307.077,000
210,652,000
2.000.000
51.175.000
135,773.000
167.798,000
389,219,000
52,443.000
13,152.000
23,950.000
112.704.000
177,308.000
423.407.000
53.224.000
13.152,000
26.900.
88.808,1 i
202.395,000
Total U.8. certificates and bills
1-15 days municipal warrants
18-30 days municipal warrants
31-80 days municipal warrants
61-90 days municipal warrants
Over 90 days municipal warrants
397,698,000
2,542,000
100,000
212,000
82,000
400,712.000
2.268,000
156.000
204.000
120.000
1.000
405,197,000
2,082.000
75.000
69,000
132,000
1,000
427,759.000
3,792.000
221.000
84,000
87.000
11.000
411.509.000
3,811.000
244,000
109,000
69.000
26,000
567.398,000
3,658,000
181.000
151,000
57,000
25.000
379.557.000
615.000
3,380.000
299,000
69,000
29.000
380,587.000
880,000
3.075.000
258.000
60,000
29,000
2,936,000
2,747.000
2.359.000
4.195.000
4.259.000
4,072,000
4.292,000
4.302,000
Total municipal warrants
Federal Reserve NotesIssued to F. It. Bank by F. R.Agent
Held by Federal Reserve Rank
In actual circulation
151,325,000
16,107,000
320,400,000
346,507.000
2,919,978,000 2.931,929.000 2.950.938.000 2,909.798.000 2.953.776.000 2.819,060,000 2,788.897,000 2,772.705,000 2,031,901,000
277,838,000 296.163,000 299,912,000 296,694,000 292,570,000 290.728.000 304,005,000 294,575,000 514,058,000
2,642.140,000 2.635.766.000 2.651,028,000 2,613,104,000 2.661.206,000 2.528.332,000 2.484,892,000 2,478.130.000 1,517,843,000
Collateral Held by Agent as Security for
Notes Issued to Bank829,854,000 867,789.000 887,611,000 865,742,000 844.192.000 800,818.000 762.566.000 697,051.000 625.539,000
By gold and gold certificates
1.228,380,000 1,206.580.000 ,206.930.000 1.224.830,000 1.203,530.000 1.122.330.000 1.045.830000 1.050.530.000 1,137.680,000
Gold fund-Federal Reserve Board
952.413.000 .025.018.000 1,284.928,000 1.097.158,000 038,104.000 1.038.513,000 1.085,285.000 336,319,000
962,085,000
By eligible paper
.099,559,000 3,375.298.000 3.144.880,000 2,859,250,000 2.846,909.000 2.832.866,000 2,099,538,000
3,028,782.000
3,018,319,000
Total
•Revised figures.
LIABILITIES OF EACH OF THE 12 FEDERAL RESERVE BANKS AT CLOSE OF BUSINESS JAN. 20 1932
WEEKLY STATEMENT OF RESOURCES AND
Two Ciphers (00) milted.
Cleveland. Richmond Atlanta. Chicago. St. Louts Mittman. Kan.City. Dallas. San Fran.
Total. 1 Boston. New York.1 Phila.
Federal Reserve Bank of$
$
$
$
$
$
$
$
$
$
1
$
$
$
RESOURCES.
177.500,0 212,470,0 73,170,0 79.300,0 519,620.0 63,020,0 54,165,0 61.680,0 34,680,0 157 763 0
Gold with Federal Reserve Agents 2.058,234,0162,627.01460,239,0
897,0 3,118,0 1,0030 6,00,0
7,145,0 7,415,0 2,549,0 3,278,0 9,572,0 2,367,0
11.453,0
4.692,
59,493,0,
Trees__
El.
U.
with
Gold red'n fund
471.092,0184,645,0 219,885,0 76,719,0 82,578.0 529,192.0 65.387,0 55.082,0 64,798,0 35 883 0 163.767,0
Gold held excl. asst. F. R. notes 2,115.727,0167,319,
1 ' 2 9890
184,376,0 11,271,0 40,212,0 18,012,0 9,158,0 33,522,0 7,992.0 10.136,0 9,040,0 12,8080
Gold settlel fund with F.R.Board 363.410,0 14,096,
0 30:499,
23,396,0 5,721,0 8,671,0 53,321,0 11,653,0 1,749,0 12,060.0 3.540,0
Gold and gold ctfs. held by banks- 528,777.01 20,836, 327,387,027.944,0
99,452,0 190,407,0616,005.0 85.032,0 68,947,0 85,898,0 51,829,0 207,255,0
283,493,0
983,455,0223,860,0
3,005,974,0202,251,0
Total gold reserves
32,396,0 12,712.0 6,670,0 8,988,0 8.748,0 11,163,0
42.967,01 18,624,0 14,216.0 8,880,0 6,314,0
189,717,01 18,271,0
Reserves other than gold
.
-484,0 297,709,0 108,112,0 106,721,0 648,431,0 97,744,0 73,817,0 94,884,0 60.577,0 218,408.0
195,631,0220,522,01,026,422,0242,
3
Total reserves
11,128,0 3,215,0 1,964,0 2,228,0 3,121,0 6,729,0
4,218,0
4,116,0
4.198,0
3,695,0
22,907,
'76,387,01 8,868,
Non-reserve cash
Bills discounted:
49,050.0 72,729,0 11,009,0 18,073,0 60,142,0 16,683.0 1,697.0 7,916,0 3,872,0 53,441,0
Sec. by U.S. Govt. obligations_ 438,545,0 21,919, 124,034. 65,235,0 53,294,0 31,652,0 36,230,0 22,808,0 9,906,0 9,981,0 25,999,0 12,847.0 47.817,0
43.552.0
380,441,0 21,150,
Other bills discounted
42.681,0 52,303.0 82,950,0 26,569.0 11,678.0 33.915.0 16.719,0 101,258.0
818,986,0 43,069,0 167,556,0 114,285,0 126.023,0 7,988,0 10,931,0 25,388,0 12,086,0 5,288,0 8.850,0 2,904.0 25.430.0
Total bills discounted
188,041,0 17.448,01 56,703,01 8,929,0 8.120,0
Bills bought in open market
JAN. 23 1932.]
FINANCIAL CHRONICLE
Two Ciphers (00) Omitted.
Total.
—
RESOURCES(Concluded)—
1.8. Government securities:
Bonds
Treasury notes
Certificates and bills
$
Total U.S. Govt. securities
)ther securities
Foreign loans and gold
Total bills and securities
3ue from foreign banks
4'. It. notes of other banks
Incollected items
Sank premises
Ul other resources
Boston. New York
$
$
Phila.
639
Cleveland Richmond Atlanta. Chicago. St. Louis. Afinneap.
Kan.City. Dallas. San Fran.
$
$
$
$
$
$
$
$
26,263,0 3,717,0 5,225.0 54,196,0 11,715,0 15,847,0 9,185,0
17,996,0 17,952,0
2,732,0
316,0
433,0 3,417,0
951,0
705,0
647,0
641,0 1,950,0
40,104,0 5,048.0 6,939,0 49,976,0 15,220,0 11,120,0 10,376,0
11,228.0 28,108.0
69,099,0 9,081,0 12,597,0 107,589,0 27,886,0 27,672,0 20,208,0
29,865,0 48.010,0
700,0
850,0 4,500,0
880,0
555,0
840,0
2,540,0
S
s
320,213,0 23,398,0
33.557.0 1,972,0
397,698,0 30,810,0
111.467,0 23,252,0
17.720.0 2,073,0
155,214,0 33,555,0
751,468,0 56,180,0
36,846,0 3,460,0
284,401,0 58,880,0
19,336,0 3,185,0
1,795,341,0 120,157,0
8,597,0
693,0
19,137.0
228,0
431,387,0 47.332,0
57,813,0 3,336,0
36,371,0 1,294,0
527,996,0 183,279,0 203,242,0 60,408,0 76,681,0 220,425,0 67,421,0 45,193,0
63,813,0 49,448,0 177.238,0
3,074,0
940,0
875,0
346,0
321,0 1,222,0
21,0
13,0
251,0
243,0
598,0
6,493,0
414,0 1,076,0 2,004,0
778,0 1,635,0 1,608,0
371,0 1,399,0
281,0 2,850,0
129,202,0 36,786,0 40,907,0 33,449,0 11,328,0 49,669,0 16,521,0
6,827,0
20,968,0
14,427,0
23,971,0
14,817,0 2,626,0 7,951,0 3,605,0 2,489,0 7.827,0 3,461,0
1,834,0
3.649,0
1,765,0 4,433,0
13,342,0 1,588,0 1,938.0 4,220,0 3,650,0 2,906,0 2,314,0 1,361,0
1,200,0 1,559,0
999.0
Total resources
5,620,664,0 402,430,0 1,744,253.0 471,812,0 557,896,0
216,362,0 206,084,0 943,243,0 192,305,0 131,180,0 188,392,0 131,481,0 435,226,0
LIABILITIES.
?. R. notes in actual circulation 2,642,140.0 188.504,0 572,493,0 262,090,0
317,700,0 109,730.0 121,681,0 549,060,0 92,853.0 67.952,0, 81,615,0
3eposits:
45,266,0 233,196,0
Member bank reserve account 1.971.564.0 125.655,0 852,276,0 122,757,0
143,847,0 51,182,0 50,430,0 272,130,0 60,135,0
Government
26,146,0 2.234,0
3,128,0 1,746,0 2,067,0 1,176,0 1,317,0 5,169,0 1,310,0 42.116,0 69,720,0 48.003,0 133,313,0
Foreign bank
1,537,0 1,969.0 3,137,0 1,356,0
81,830,0 5.043,0
37,105,0 6,835.0 6,702.0 2,654.0 2.455,0 8,892,0 2,323,0 1.460,0
1.924,0 1,858,0 4,579.0
Other deposits
26,385,0 1,214,0
10,684,0
388,0 3.462,0
271.0
965,0
203.0
660,0
365,0
63,0
218.0 7.892,0
—
Total deposits
2.105,925,0 134.146,0 903,193,0 131,726,0 —
136,078,0
55,283,0
64,405,0
287,156,0
64,428,0 45.478,0 73.676,0 53.216,0 147,140,0
Deferred availability items
428,687,0 47,303,0 125,631,0 34,215,0
39,659,0 33,384,0 12,093.0 47.092,0 18,967,0
20,102,0 18,543.0 24.715.0
.7,apital paid In
159,459,0 11,676,0
60,913,0 16,389.0 14,740,0 5,462.0 5,071,0 17,971,0 4,674,0 6,983,0
2,954,0 4,171,0 4,137,0 11.301,0
lurplus
259.421,0 20.039.0
75,077.0 26,486,0 27,640,0 11,483,0 10,449,0 38,411.0 10,025,0
6,356,0 8.124.0 7.624,0 17.707,0
Ul other liabilities
25,032,0
762,0
6,946.0
906,0 2,079,0 1.020,0 2,385,0 3,553,0 1,358,0 1,457,0
704,0 2.695,0 1,167,0
Total liabilities
5,620,664,0 402,430,0 1,744.253,0 471,812,0 557,896,0 216,362,0 206,084,0
943,243,0 192,305,0 131.180,0 188,392,0 131,481,0 435,226.0
Memoranda.
"teserve ratio (per cent)
67.3
68.3
69.6
61.6
62.8
65.5
60.6
62.1
77.5
3ontingent liability on bills pur64.9
61.1
61.5
57.4
ohnqeli foe threlen enrresnond•ts 281 299 n 21617.0
03105.0 29 296 n 90 797 n ii 5770 in 0246 38.113.0 9.955.0
6.257.0 8.248.0 7.964.0 19.626.0
FEDERAL RESERVE NOTE STATEMENT.
Federal Reserve Agent at—
Total.
Boston.
New York.
Phila.
$
$
Two Ciphers (00) Omitted.
$
s
Federal Reserve notes:
Issued to F.R.Bk. by F.R.Agt_ 2,919,978,0 216,486,0
Held by Federal Reserve Bank. 277,838,0 27,982,0
In actual circulation
2 642,140,0 188,504,0
Collateral held by Agt. as security
for notes issued to bank:
Gold and gold certificates
829,854,0 47,010.0
Gold fund—F. R. Board
1.226.380,0 115.617.0
Eligible paper
962,085,0 57,952,0
Total collateral
3.018,319,0 220.579,0
Cleveland. Richmond Atlanta. Chicago. St. Louis. Allinneap. Kan.City
$
s
$
$
s
a
$
Dallas. SanFran.
$
$
625,877,0 281,169,0 337,392,0 121.324,0 140.082,0 612,133,0 98,120,0
53,384.0 19,079,0 19,692,0 11,594,0 18,401,0 63,073,0 5,267,0 69,479,0 93,516,0 51,315,0 273,085.0
1,527,0 11,901,0 6.049.0 39.889,0
572.493,0 262,090,0 317,700.0 109.730.0 121,681,0 549,060,0 92,853,0 67,952,0
81,615.0 45,266,0 233.196.0
410,239,0 54,700,0 64,470.0 11.570,0 12,800,0 99,620.0
50.000.0 122,800,0 148,000.0 61,600.0 66,500,0420,000,0
212,968,0 112,738,0 130,749,0 49,123,0 61,802,0 103,407,0
—
673,207,0 290,238,0 343,219,0 122,293,0 141,102,0 623,027,0
15,120,0 13,165,0 9,880.0 12,280,0 79.000,0
47,900,0 41,000,0 51.200,0 22,400,0 78,763,0
35,378,0 15,526,0 40,871,0 17.670,0 123,901.0
98,398,0 69,691.0 102,551,0 52,350,0 281,664.0
Weekly Return for the Member Banks of the Federal Reserve System.
Following is the weekly statement issued by the Federal Reserve Board, giving the
principal items of the resources
and liabilities of the reporting member banks from which weekly returns
are obtained. These figures are always a week
behind those for the Reserve banks themselves. Definitions of the different
items in the statement were given in the statement of Dec. 14 1917, published in tho "Chronicle" of
29 1917, page 2523. The comment of the Reserve Board upon
the figures for the latest week appears in our department ofDec.
"Current Events and Discussions," on page 591, immediately preceding which we also give the figures of New York and Chicago
reporting member banksfor a week later.
Beginning with the statement of Jan. 9 1929, the loan figures
exclude
"Acceptances of other banks and bills of exchange or drafts sold with endorsemen
all real estate mortgages and mortgage loans held by the
t, and Include
of the banks included mortgages In Investments. Loansbank. Previously acceptances of other banks and bills sold with endorsement were included with loans, and some
secured by U. S. Government obligations are no longer shown separately,
being given. Furthermore, borrowing at the Federal Reserve
only the total of loans on securities
is not any more subdivided to show the amount secured by U. S.
obligations and those secured by commercial
Paper. only a lump total being given. The number of reporting banks
is now omitted in its place the number of cities included (then 101).
ning Oct. 9 1929 even this has been omitted. The figures have also
was for a time given, but beginbeen revised to exclude a bank
the San Francisco district with loans and investments of 3135,000,000
on Jan. 2 1929, which had then recently merged with a non-membe
r bank. The figures are now givenin
in round millions Instead of in thousands.
PRINCIPAL RESOURCES AND LIABILITIES OF ALL
REPORTING MEMBER BANKS IN EACH FEDERAL RESERVE DISTRICT
AS AT CLOSE OF
BUSINESS JAN. 13 1932 (In millions of dollars).
Federal Reserve District—
Total,
Boston. New York
Phila,
Cleveland. Richmond Atlanta. Chicago. St. Louts. Ifinneap. Kan.City. Dallas.
San Fran.
Loans and investments—total
S
20,287
S
1,319
$
8.106
$
1,196
$
2,014
Loans—total
13,031
889
5,179
726
5,660
7,371
345
544
2,527
2,652
7,256
430
3,996
3.260
1,516
249
11,643
5,843
265
927
2,427
460
On securities
All other
Investments—total
13.8. Government securities
Other securities
Reserve with F. It. Bank
Cs.sh in vault
Net demand deposits
Time deposits
Government deposits
Due from banks
Due to banks
rtnrenxvInna frnnl r Tt Bunk
3
603
534
$
2,740
1.272
369
355
367
359
573
699
144
225
2,927
470
742
205
225
1,829
1.098
187
283
83
21
754
428
5
60
127
IA
740
66
5,559
1,248
131
98
927
09
75
14
672
274
18
60
146
kfl
$
$
$
$
3
416
$
1,827
319
274
1,103
91
228
81
193
296
807
131
238
142
724
91
122
54
77
134
134
82
60
386
338
42
21
5
179
156
I
46
62
46
13
379
184
2
94
138
29
8
245
131
15
59
74
87
19
621
914
26
104
165
592
353
1,944
379
222
109
246
919
1,025
149
230
59
163
234
179
796
213
386
356
111
123
91
88
440
356
111
32
867
853
18
70
183
33
16
296
224
11
54
79
In,
00
•40
33
8
244
201
15
54
77
216
39
1,504
1,016
19
184
360
nfl
.10
.01
8
323
214
4
44
89
A
587
10
ACP
L
A_
Condition of the Federal Reserve Bank of New York.
The following shows the condition of the Federal
Reserve Bank of New York at the close of business Jan. 20 1932,
comparison with the previous week and the corresponding
in
date last year:
Resources—
Gold with Federal Reserve Agent
Gold rodemp. fund with U.S. Treasury_
Jan. 20 1932. Jan, 13 1932. Jan, 21
1931.
3
3
5
460,239,000 470,239,000 460,729,000
11,453,000
11,454,000
13,829,000
Gold held exclusively agst. F. It. notes
Gold settlement fund with F. R. Board_
Gold and gold ctfs. held by bank
471.692,000
184,376.000
327,387,000
481,693,000
189.652.000
288,913,000
Total gold reserves
Reserves other than gold
983,455.000
42,967.000
960,258,000 1,123,731,000
41.858,000
51,978,000
Total reserves
Non-leserve cash
Bills discounted:
Secured by U. S. Govt. obligations
Other bills discounted
Total bills discounted
Bills bought in open market
U. S. Government securities:
Bonds
Treasury notes
special Treasury Certificates
Certificates and bills
474,558,000
151,523,000
497,650.000
1,026,482,000 1,002,116,000 1,175,709.000
22,907,000
23,003.000
21,086,000
124,034,000
43,522,000
150.307,000
40,903,000
18,900,000
23,867,000
167,556,000
56,703,000
191.210.000
87,184,000
42,767,000
38,600.000
111,467,000
17,720,000
111,467,000
16.934,000
50,977,000
33,554,000
155,214,000
156.000.000
129,397,000
Resources (Concluded)—
Due from foreign banks (see note)
Federal Reserve notes of other banks
Uncollected items
Bank premises
All other resources
Total resources
Jan. 20 1932. Jan. 13 1932. Jan. 21 1931.
3.074,000
6.493.000
129.202.000
14,817,000
13.342.000
3.140.000
5.905.000
119,941.000
14,817.000
12,547.000
237.000
10,676,000
131,134,000
15,240.000
6,453,000
1,744.253.000 1,738,977,000 1,656,380,000
Liabilities-Fed. Reserve notes in actual circulation_
Deposits—Member bank reserve acc't__
Government
Foreign bank (see note)
Other deposits
572,493.000
852.276,000
3.128.000
37,105.000
10.684,000
572.742.000 307,745,000
856,722,000 1,061,784,000
6.622,000
2,830,000
30.404.000
2,209.000
15,766,000
8,611,000
Total deposits
Deferred availability items
Capital paid in
Surplus
All other Ilabthtles
903,193.000
125,631,000
60,913.000
75,077,000
6,946,000
909.514,000 1,075,434,000
113,856,000 124,303,000
60.894,000
65,682,000
75.077.000
80,575,000
6,894,000
2,641,000
Total liabilities
1,744,253.000 1,738,977,000 1,656,380,0
00
Ratio of total reserves to deposit and
•
Fed. Reserve note liabilities combined_
69.6%
87.6%
Contingent liability on bills purchased
85.0%
Total bills and securities (see note)___ 527.996.000 557.508.000 295,845,000
for foreign correspondents
93,595,000
93,436 000 147,815,000
NoTh.—Beginning with the statement of Oct. 17 1925, two new items
were
In
added
Order to show separately the amount of
foreign correspondents. In addition, the caption "All other earnings assets," previously
made up of Federal Intermediate Creditbalances held abroad and amounts due to
securities," and the caption, "Total earnings assets" to "Total bills and securities."
The latter term was adopted as a more accurateBank debentures was changed to "Other
acceptances and securities acquired under the provisions of sections 13 and 14 of
description of the total of
the Federal Reserve Act. Which it was stated are
the discount
the only Items Included therein.
Total U.S. Government securities__
Other securities (see note)
Foreign loans on gold
284,401,000
19,336,000
284,401,000
14.713,000
213,928,000
550,000
[VOL. 134.
FINANCIAL CHRONICLE
640
tily Record of U. S. Bond Prices. Jan. 16 Jan. 18 Jan. 19 Jan. 20 Jan. 21 Jan. 22
gankere
azette.
Wall Street, Friday Night, Jan. 22 1932.
Railroad and Miscellaneous Stocks.—The review of the
Stock Market is given this week on page 628.
The following are sales made at the Stock Exchange this
the
week of shares not represented in our detailed list on
pages which follow:
STOCKS.
Week Ended Jan. 22.
Par.
Railroads—
Albany Sr SUSQue._ _100
Caro Clinch & Oblo_100
Central RR of N J_100,
Chic & East Illlnols-100,
Duluth 13 & A pret 100
Hudson & Math pf_100
Ill Cent preferred_ _ _ 1001
100
Leased lines
Manhat Elev guar._100
Minn St P & SS M—
100
Leased line
1001
Preferred
Nash Chatt dr St L_1
Range Since Jan. I.
Range for Week.
Sales
for
Week.
Highest.
Highest. I Lowest.
Lowest.
$ per share.
$ per share. $ per share. $ per share.
Jan
Jan 225
Jan 19 226
Jan 19 150
10 150
Feb
92
Dec
56
22
Jan
34
22
61
Jan
Kt 6134
Feb
230
Dec
34
69
20
Jan
Jan 2 78
100 78
34 Dec
34 Dec
400 134 Jan 18 134 Jan 18,
34 Dec 134 Jan
34 Jan 18!
34 Jan 18
100
Feb
7834
Dec
40
20
200 4534 Jan 20 4534 Jan
Feb
Dec114
15
120 2834 Jan 19 263.4 Jan 18; 25
Jan
78
Deci
161
Jan
36
Jan 19
210 32
Feb
61
Dec
25
Jan 18
340 33 34 Jan 16 38
270 10
200 3
100 20
Indus. & Miscell.
Affiliated Products_ __• 3,100 14%
200 53
American Ice pret 100
200 4834
Am Pow & Lt pf new_ _•
Amer Radiator & Stan
10 115
1
Sanitary pret .,...,l00
10z9234
Arch Daniels Mid pf 109
200 734
Art Metal Construct..19
io 30
Barker Bros pret__1
200
%
Barnet Leather
140 59
Blumenthal & Co pf 1
10 12
Budd (E G) pref___1
100 254
Burns Bros class A
100 134
Class A Ws
20 9
25
Chile Copper
50 80
1
City Investing
70 4
City Stores class A _ _•
10 71
Cushman Sons pf(8%)•
Mar
July
Feb
Jan 19 1134 Jan 16 534 Dec 45
Dec 14
Jan 20 334 Jan 20' 1
Jan 20 1234 Dec 80
Jan 20 20
Nov
Jan 21 1534 Jan 18 1234 Dec 20
Dec 7734 Jan
Jan 18 43
Jan 18 53
Jan 16
Jan 16 49
Apr
Dec 150
Jan 21 100
Jan 21 115
Jan
Dec 102
Jan 21x0234 Jan 21 90
34 Jan
20
Dee
20
754
Jan
20
Jan
734
Apr
62
Oct
25
Jan 22
Jan 22 30
34 Dec 234 Mar
34 Jan 19
Jan 21'
Dec 8234 May
Jan 22 50
Jan 18 65
Dec 60 June
Jan 21 10
Jan 21 12
Jan
Jan 18 254 Jan 18 154 Dec 51
1234 June
Dec
34
1
19
Jan
Jan 19 154
Feb
Jan 18 9 Jan 18 11 34 Sept 38
Dec 14954 Jan
Jan 22 74
Jan 22 85
Feb
Jan 16 434 Jan 19 434 Nov 25
Mar
Dec 107
Jan 16 68
Jan 16 71
Jan 18 2034 Dec 27%
Jan 18 22
Jan 20 1134 Jan 20 1054 Dec 18
Oct 6
Jan
22
Lan
%
59
Jan 181
20 4231 Dec 98
Dec 12
Jan 19 254 Jan 19 3
Dec 75
Jan 18 60
Jan 18 65
Dec 117
Jan 16 93
Jan 16 99
Dec 74%
Jan 22 15
Jan 22 17
Dec 136
12
21
Jan
128
834
21
Jan
Jan 21 833.4 Dec 68
Jan 21 55
34 Dec 634
Jan 19 2 Jan 19
Jan 18 11634 Dec 126%
Jan 18 112
Jan 19 234 Jan 19 154 Dec 434
Jan 18 434 Jan 18 234 Oct 754
Jan 19 4034 Oct 71
Jan 19 50
Jan 22 5634 Jan 22 5234 Dec 85
Dec 113 34
Jan 16 102
110
16
Jan
Nov
Oct
Feb
Mar
Apr
Jan
Sept
Mar
July
Sept
Aug
Jan
Oct
Aug
Aug
Mar
Sept
5
60
3934
2634
12
97
Dec 2034
Dec 102%
Sept 72%
Sept 39%
Dec 28
Dec 11234
Aug
May
Feb
Mar
Feb
Sept
6% Jan 16 234
Radlo-Keith-Orn new * 4,400 534 Jan 2
90 834 Jan 16 1234 Jan 19 5
Shell Transp & Traci_ 42
Jan 21 12
225 1334 Jan 20 14
Sloss-Sbeff St&Ir p115,
Jan 21 87
Jan 21 80
20 80
1
The Fair prof
22
Jan
334
19
334
Jan
1,400
Otis
Products
TO181C00
Underw d-Elliott-FIshe
Jan 21 100
20100 Jan 21 100
100
preferred
Jan 18 5
Jan 18 6
300 6
United Amer Bosch_..•
34
Jan 21!
Jan 21 1
10 1
100
United
Jan 20 3334
Jan 20 31
50 31
100
Preferred
9354
21'
Jan
34
93
18
Jan
93
70
Unit Piece Dye pre( 100
Jan 18! 8034
90 80 Jan 18 81
Univ Leaf Tob pret_100
Jan 20 5834 Jan 22 50
20 57
10
Utah Cooper
Jan 22 22
Jan 22 35
10 35
Van Raalte 1st prof 100
34
34 Jan 22
34 Jan 22
130
Wells Fargo tt CO - -- -1
Dec 4
Dec 34
Oct 39
Oct 106 34
Dec
Jan
Feb
Feb
Dec 12334
Sept 2734
Dec 334
Dec 48
Dec1084
Dec 110
Oct 12434
Oct 60
Dec 1
Aug
Mar
Apr
JUIY
Mar
Mar
Feb
June
Jan
•
Dresser Mfg el A
•
Class B
Elk Horn Coal prof..,.s
Eng Pub fiery pf (6)_•
Fairbanks Co of Ms lOs
Franklin Simon peel 105
General Ctgar pref__1 is
Greene Cananea Cop100
Helms (CI NV) pref,..1IS
Inter Dept St prei..,.IOs
Kresge Dept Stores,_,'
Loose-Wiles His lstpf100
Newport Industries.„5
N Y Shipbuilding,'
lii
Preferred
Omnibus Corp preLlsl
'ii
Outlet Co pier
Panhandle Prod & Ref
1s 5
Preferred
Phil& Co 6% pf new...'
Pierce-Arrow Co pLus
Pirelli Co of Italy
Pitts Term Coal pf i5i
Procter & Gamble oil
200 22
200 11
300
Si
100 59
10 234
40 65
100 99
10 17
100 128
10 55
10 2
60112
500 234
2,000 434
50 50
100 5634
60110
90 554
100 73
100 40
300 28%
90 12
10 101
Jan
Jan
Jan
Jan
Jan
Jan
19 8
16 73
18 40
21 2834
16 12
18 101
Jan
Jan
Jan
Jan
Jan
Jan
18
16
18,
22'
16
18
of
Quotations for United States Treasury Certificates
Indebtedness, &c.
/in.
Rate.
Bid.
4sked.1
Maturity,
/n1
Rate.
Sept. 15 1932.— 3%
30'4.15 1932.— 1 34% 9811,s 98"seI Dec.15 1932.-- 334%
99"ss 100111
afar. 15 1032.... 2%
100°.:
Iu
100,
%
34
tune 15 1932.__ 2
Bid
99,,n
991,r,
Asked.
100,c
100,st
Foreign Exchange.—
sterling exchange were 3.44@3.45
To-day's (Friday's) actual rates for
sight,
for cables. Commercial on banks, docufor checks and 3.4413.453i ninety
days, 3.37 5-16@3.38%. and
3.44: sixty days. 3.39 @)3.40:
for payment, 3.433.1, and
Cotton
.
.40@3.40%
ments for payment,
grain, 3.4334.
bankers' francs were 3.9340
To-day's (Friday's) actual rates for Paris guilders were 40.25Q40.28.
bankers'
3.93 13-16 for short. Amsterdam 87.40; week's range, 88.75 francs high
Exchange for Paris on London.
and 87.40 francs low.
follows:
The week's range for exchange rates
Cables.
Checks.
Sterling. Actual—
3.4934
3.4934
High for the week
3.44%
3.44
Low for the week
Paris Bankers Francs—
3.94
3.93 1346
High for the week
3.93 5-16
3.93 1-16
Low for the week
Germany Bankers' Marks—
23.75
23.73
Huge for the week
23.55
23.50
Low for the week
Amsterdam Bankers' Guilders—
40.30
40.28
High for the week
40.21
40.17
Low for the week
Treasury
United States Liberty Loan Bonds and
e.—
Exchang
Stock
York
New
Certificates on the
transactions in
Below we furnish a daily record of the
New York
Liberty Loan and Treasury certificates on the
bonds are
registered
in
ons
Stock Exchange. The transacti
given in a footnote at the end of the tabulation.
Total sales in $1,000 unfts___
Converted 444% bond/High
of 1932-47 (First 4%s) Low_
951,,
9411,1
941432
154
----
95
9455n
941in
351
----
9411n
9411n
9411n
184
----
95313:
9431as
94,1n
209
----
94,,
9414
94,1s
291
----
9411s,
9411,
941*n
209
---
-n
98"
98,,,,
98"as
63
98-",,
98,as
981,,
147
98-,,,
97"as
98
102
8-1,1
9971,1,
981,1
53
9-8-1iss
98
981s,
133
9873,1
Total sales in 81,000 units__
Second converted 434%(High
bonds 01193247(Fir—(Low
Second 434s)
-—
-Total sales in $1.000 units-{High 991,, 99,12
F. nnth Liberty Loan
Low- 98"ag 99
4Ss% bonds of 1933-38
99,,,
Close 991.,
434s)
461 1,541
Total sales in $1.000 units-1n 101,,,,
{Hist; 10
,easury
ow_ 100,,,, 101.3a
434s, 1947-52
Close 100uo 101 1as
527
122
Total sales in $1,000 units__
971..
(High 97
Low_ 90,,,, 97
48. 1944-1944
971s,
Close 97
395
55
Total sales in $1,000 units—
91"as
111g13 91Ts:
Low_ 90"n 90",,
3348. 1946-1956
911,11
Close 911st
68
8
Total sales in $1,000 units__ _
DO
(High 901s,
Low. 891,,, 89"as
331s, 1943-1947
13
Close 89111: 89 n
70
Total sales in $1,000 units..,-7
ili W) 84"a, 851a,
Low. 84",,842..
35, 1951-1955
Close 842831 85
140
86
Total sales in $1,000 units__
Mgt;
90"u 91
9014,
:2
9013
Low_
1940-1943
Close 90,1n 9032,,
103
105
Total sales in $1,000 units_ _ _
{
h
g.
Loiw
111
Close
Total sales fn $1,000 units__
111103
Low.
1348, 1946-1949
CIOSe
Taal lea,in SI non unite__
l'ie, 1941-43
0 :::
99
0
9011,,
23
85 11,,
85",,
8511,1
13
Fill):::,
9031as
64
8511,,
852,1,
8511,2
928
97",Close
97"n
79
----------,99,
9911,
-99
991,1
981,,, 98"st 9811,1
98",(Fourth ,91°,1
99'n '
99
99
397
283
500
752
10119 1011as 101'n 101142
10011,1 100". 100n,s 10017.
100"as 100",, 100"ss 10011.,
128
127
352
971ss
:
972n
96",
971,1
98",, Huss 98"11 98",*
97
98"ss 96"ss
97
175
229
105
226
92
91",, 91",,92•31
92
91,2,1 91"ss 92
92
,,
91",, 911,,, 92,
285
104
21
40
90
89"as 8914,1 89,1,1
89"n 89,1n 89",s 89
89,,,, 891,,
89,1st 89",
29
245
15
16
84",, 84"3/
85
85
. 84,1,, 84,1a,
84",,8414
84",, 8421,1 84,,,s 84"as
130
77
199
59
90"ss 00"32 90'.32
90",34s .0
90,,,, 901
9013:
901as
90",, 903132 90,, 90,,,,
60
54
233
302
1'n 901,as 90,1,1
9",, 90"as 90"as
4,1 90
"
°
902
9
9011n 9021s, 9021,, 901,,,
173
30
33
76
850,1 85"st
85",, 852,
85"ss 85",, 8.515s,
85111
8511,2 85,1st 85",1 85111,
97
265
293
65
Note.—The above table includes only sales of coupon
bonds. Transactions in registered bonds were:
971%,to 97"as
13 lot 434,
The Curb Exchange.—The review of the Curb Exchange is
given this week on page 629.
A complete record of Curb Exchange transactions for the
week will be found on page 658.
CURRENT
*No par value.
lifanselly.
High
lest Liberty Loan
334% bonds of 1932-47-- LOW.
Close
(First 334s)
Total sales in $1.000 units-Converted 4% bonds of{HIgit
1932-47 (FIrst
NOTICES.
President
— R. W. Sparks of the Bowery Savings Bank has been elected
Other
of the New York Financial Advertisers for the ensuing year.
officers elected were: Vice-President, Roland Palmedo of Lehman Brothers:
Co.:
Treasurer, Miss Anne H. Sadler of the Bank of Manhattan Trust
elected
Secretary, Tracy M. Purse, the Purse Co. The following were
directors:
A.
Amos R. Bancroft, First National Old Colony Corp.; Leopold
Trust Co.;
Chambliss, Fidelity Union Trust Co.; Frank G. Burrows, Irving
Durham,
F.
Co.;
Richard
Trust
&
John Donovan, Central Hanover Bank
and
Bankers Monthly; Henry R. Kinsey, Williamsburgh Savings Bank.
Donald G. Price, Franklin Savings Bank.
—The investment securities firm of Hill, Reed & Co. has been organized on the Pacific Coast, with headquarters in Los Angeles, to deal in
Government, municipal and corporation securities. The firm is composed
of Carey S. Hill, Henry G. Reed and T. Allen Box Jr. For over 15 years.
Mr. Hill has been actively identified with Bond & Goodwin & Tucker, Inc.
and its successor company, Tucker Hunter Dulin & Co. as Vice-Preeldent
of those corporations. Mr. Reed for the past 10 years was resident partner
of the above firms in charge of their offices in both Oregon and Washington.
Mr. Box has specialized in merger activities and reorganization work.
First
—Gardner Dalton & Co. announce the opening of offices in the
.1
Wisconsin National Bank Bldg., Milwaukee, Wis., and will conduct
and
banks,
dealers,
for
bond brokerage and trading business exclusively
for
institutions. Mr. Dalton was formerly Wisconsin representative
National City Co., and previously was Wisconsin representative for the
Guaranty Co. of New York.
—Holt, Rose & Troster have prepared a special circular showing the
position of the 37 New York City banks and trust companies as of Dec. 31
1931, with a brief analysis of the more important institutions, including
the surplus and undivided profits account, book value per share. earnings
per share, current dividends and the range for the capital stock during
the past year.
—Crowell, Wooden & Co. announce the opening of offices at 923 Bank
of America Bldg., 650 South Spring St., Los Angeles. Warren II.
Crowell was for many years connected with the firm of Revel Miller &
Co., as was George W. Weedon Jr., who was manager of their stock department and trader on the Los Angeles Stock Exchange.
—Announcement is made of the formation of the firm of Cox, Saunders.
Hazelett & Co. to specialize in industrial financing and management, and
investment research and administration. Members of the new firm are
and
H. Thompson Cox, Malcolm L. Saunders, F. Frederic Hazelett
A. J. P. Wilson. The firm's offices will be at 16 Court St.. Brooklyn.
—The United States Life Insurance Co. in the City of New York anSt.,
nounces the appointment of Charles F. Joyce Co., Inc., 126 Pearl
Buffalo, N. Y., as general agents for western New York.
been
—Albert W. Bianchi, member New York Stock Exchange, has
Street.
admitted to general partnership in Carl M. Loeb & Co., 50 Broad
New York.
—D. Kinsley Waldron, formerly with the Lehman Corp., is now associated with the trading department of Eastern Investors Co., Inc.
William
—Joseph Bond is now associated with J. Roy Prosse & Co., 52
St., New York, in their bank stock departmenL.
Report of Stock Sales-New York Stock Exchange
DAILY, WEEKLY AND YEARLY
Occupying Altogether Eight Pages-Page One
HIGH AND LOW SALE PRICES-PER SHARE,
PER SHARE
NOT PER CENT.
PER SHARE
Sales
STOCKS
Range for Year 1931
Range for Previous
for
NEW YORK STOCK
Monday
Tuesday
Wednesday
On basis of 100-share lots
Thursday
Year 1930
Friday
the
EXCHANG
E.
Jan. 18.
Jan. 19.
Jan. 20.
Jan. 21.
Jan. 22.
1Veek.
Lowest
Highest
Lowest
Highest
$ per share 3 per share $ per share $ per share
3 per share $ per share
88% 8912 87
Railroads
Par $ per share 3 per share $ per share $ per share
89% 8718 90
8838 9012 9012 9214 8612 9312 Shares
'85
19.100 Atch Topeka & Santa Fe-100 7914 Dec 17 2033n Feb 24 168 1,e, 444,3 Mar
8634 85
86
85
86
86
86 .85
86
85
600
85
*36
39 .35
Preferred
100 275 Dec 31 10814 Apr 13 100 De, 108% Sept
39
38
38 '
45
47
*37
39
38
40
19z 2038 18
1.600 Atlantic Coast Line RR_ _100 25 Dec 17 120 Jan 23
20
17
193
9514 De, 17512 Mar
1812 2018 20
213
1838 2118 99.400 Baltimore & 01110
40
40
38
100
3812 *37
14 Dec 17 8778 Feb 24
38 .37
5538 De, 12238 Mar
38
37
37
37
39
1,300
23
23
Preferred
22
100 25 Dec 14 8012 Feb 27
22
*20
21
7014 Be, 8438 July
*20
22
213
4
213
4
2012
213
700 Bangor & Atoostook
75
75
.75
50 18 Dec 18 663 Feb 26
80
*75
80
5018 De, 8413 Mar
*75
80
•75
80 .75
80
*14
60
Preferred
18
*11
18
100 80
@FedFRASER