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The
oniiiirmt31 *
Volume 138
financial
lin:nude
New York, Saturday, January 27 1934.
Number 3579
The Financial Situation
HE United States Treasury program of financing was announced this week and proved an
unqualified success, as every well-informed person
knew beforehand would be the case. It necessarily
consisted of the offering of short-term obligations,
since prevailing conditions would not admit of longterm financing. The reasons for this latter state of
things—the drawbacks against floating long-term
issues, except at prohibitive rates of interest—are
well understood and lie on the surface. They are
the same as those which operated against the placing
of a long-term issue in December, when the United
States Treasury confined itself to an offering of
$950,000,000 (or thereabouts) of one-year Treasury
4% interest.
certificates of indebtedness, carrying 21/
certain
in
quarters
time
that
There had been hopes at
that the Secretary of the Treasury would undertake
to float some long-term obligations, but to careful
observers it was plain that this would have been far
from an easy task. The events following Government financing in October, which involved long-term
financing, served to make Government officials exceedingly hesitant about indulging in further longterm financing, at least for the time being.
The October financing referred to, besides involving the calling for redemption on April 15 1934 of
about $1,875,000,000 to $1,900,000,000 of Fourth Liberty Loan bonds,included an offering of 10 to 12-year
Treasury bonds in exchange to holders of the Liberty
Loan bonds who desired to make the exchange (the
new Treasury bonds being dated Oct. 15 1933 and
4%
bearing interest from that date at the rate of 41/
per annum until Oct. 15 1934, thus continuing for a
full year the 4%70 interest which the Fourth Liberty
Loan issue has been receiving, and thereafter at the
4% per annum) contained, in addition to
rate of 31/
the exchange proposal, an offer of $500,000,000 of
these new Treasury bonds to the general public for
27
1
0—and
cash—not at par, but at a premium of 1/
this cash offer proved an overwhelming success, the
aggregate of the subscriptions reaching nearly four
times the amount of the offering, or,in exact figures,
$1,989,024,000. Unfortunately, however, the situation thereafter changed for the worse, the market
price of United States securities, as well as highgrade securities generally, having suffered great depreciation, so that the Treasury bonds which the
2 for cash dropped
1
Government had sold at 101/
98 8/32, and though
touched
fact,
in
and,
par,
below
improved
somewhat, the quosubsequently
price
the
tation even on the day of the December financing
was 98 20/32.
Moreover, it appeared that there had been no such
avidity to take the new bonds in exchange for the
T
4% Liberty Loan bonds, as had been supposed
41/
would be the case. To induce acceptance the offer
of exchange had been made very attractive, the offer
4s and those not
1
extending to both the called 1/
called. The new Treasury bonds were offered in
exchange at par, whereas those buying for cash had
had to pay, as already stated, a premium of 1/
2%.
1
It had been hoped that large amounts of the Liberty
41/is which had not been called would consider the
offer advantageous and be glad to make the exchange. Not so, however. The exchange subscriptions altogether totaled $899,899,200, but the amount
of uncalled Fourth Liberty 41/0 presented for conversion proved no more than $25,000,000. This
demonstrated conclusively that the Treasury Department, in refraining from long-term financing in
December and offering instead $950,000,000 of oneyear Treasury certificates of indebtedness, had
judged market and investment conditions correctly.
In this week's financing the reasons for not resorting to attempts to float long-term obligations were
even stronger than at the time of the December
financing, a new adverse factor having arisen in the
reassembling of Congress and the action of President Roosevelt in submitting his devaluation proposition for cutting the gold content of the dollar to
60c, while still retaining authority to cut it to only
50c. on the dollar. This was calculated to impose
an additional drawback to floating new long-term
obligations by reason of the uncertainty as to how
the devaluation proposal would be received by the
general public. Furthermore,this was the first large
financing operation to be undertaken since President
Roosevelt submitted his extraordinary budget, and
indicated that $10,000,000,000 borrowing would have
to be done in the first six months of 1934.
Faced by this state of things, the Secretary of the
Treasury was governed accordingly. He is proposing to raise $1,000,000,000, and he arranged to get
the whole amount through the floating of short-term
obligations—$500,000,000 by the issuance of Treas2% inter1
ury notes running 131/2 months bearing 2/
est and dated Jan. 29 1934 and maturing March 15
1935, and another $500,000,000 by the issuance of
Treasury certificates of indebtedness running a little
2months dated Jan. 29 1934 and falling due
1
over 7/
2% interest.
1
Sept. 15 1934 and carrying only 1/
The whole thing was a piece of financing of the
old order, and it proved extremely successful, the
same as similar previous offerings, subscription
books being closed on the day of the offering and
aggregate subscriptions reaching nearly five times
the amount of the offering, or, roughly, $4,770,2% Treasury notes
1
000,000—the bids for the 2/
538
Financial Chronicle
Jan. 27 1934
totaling $3,415,000,000 and for the 1/
1
2% certificates
"Following the orthodox pattern, the Treasury
$1,355,000,000.
will proceed by one or more new conversion offers
4%
The rates of interest must be considered low, even to meet the problem of the $1,000,000,000 of 41/
though some previous offerings of notes and cer- Fourth Liberty Loan bonds which have been called
tificates have been on a somewhat lower basis. And for redemption April 15 and are still outstanding.
"The offerings from time to time are planned to
an important factor in these low rates has unquesbe at terms which the contemporary market inditionably been the circumstance that both the notes cates will
be most favorable.
and the certificates are free of the surtaxes, as also
"The change affecting Treasury financing operathe normal Federal income taxes, which was not the tions proposed in the pending monetary legislation
case with the Treasury bonds sold for cash at 101/
1
2 at the Capitol cover no calculated scheme for radical
in October, and which even now rule below par, the innovations, and the Administration sponsors of
closing quotation on the Stock Exchange yesterday these provisions are surprised at some of the interhaving been 99 6/32. The Treasury circular out- pretations of them. They claim the changes simply
modernize the law in accordance
lining the characteristics of the 2/
1
2% Treasury and provide for readjustments with long-felt needs
to make the familiar
notes and the 11
/
2% certificates of indebtedness both security operations more smooth."
state the provisions regarding tax exemption in unIt is worth noting, perhaps, in considering the
mistakable fashion, saying: "The notes (or certifirates of interest fixed by the Secretary of the Treascates) shall be exempt, both as to principal and
ury in this week's offering of Treasury notes runinterest, from all taxation (except only estate or
ning for 13/
1
2 months at 2/
1
2% and the 7/
1
2 months
inheritance taxes) now or hereafter imposed by the
of Treasury certificates of indebtedness carrying
United States, any State, or any of the poisessions
only 1/
1
2% interest per annum, that the State of
of the United States, or by any local taxing authorNew York on Tuesday offered a $50,000,000 2% note
ity." It will be observed that the only exceptions
issue running for one year, that this issue was also
where exemption from taxation does not exist is in
heavily oversubscribed, orders from banks and inthe case of estate or inheritance taxes, and that the
vestment banking houses having aggregated $176,exception from exemption does not include the sur200,000, and the sale having been consummated
taxes, which is a consideration of no small imwithin 10 minutes following the formal offering at
portance at the present time, when the surtaxes have
10 o'clock. This sale followed the retirement on
been raised to such high figures, and Congress is
Jan. 19 of $50,000,000 1% one-year notes. With the
now engaged in raising them still higher. But previrate of interest in this case doubled, as compared
ous issues of certificates and of Treasury notes have
with the 1% previous issue, it is evident that the
likewise carried exemption from the surtaxes, and
cost of borrowing has increased to New York State
hence there is no change in that respect. The point
(and the credit of New York State ranks very high),
of importance is that it cannot be considered that the
the same as it has to the Federal Government.
Government's credit has been impaired as a result
of President Roosevelt's devaluation program and
HE mountain labored and brought forth a
prodigious budget requirements.
mouse. This seems a natural rejoinder when
Such impairment is not now in evidence over which one is
apprised that Joseph B. Eastman, Federal
the country may be congratulated. It is well enough Co-ordinator of Transportation, in
his report issued
to note, too, that the success attending this week's last
Saturday, advised the Inter-State Commerce
financing was achieved in face of uncertainty over
Commission that the only solution of the railroad
the provisions that are to form part of future issues problem
lies in public ownership of the railroads,
of Government obligations. The bill now before for
Mr. Eastman has long been an advocate of GovCongress contains sections which change essentially
ernment ownership, and the report is devoted in a
certain features and characteristics of future issues,
predominant degree to an elaborate argument in
these being inserted at the request of the Secretary favor of Government ownership
and operation,
of the Treasury, Henry Morgenthau Jr. How the bill though
even Mr. Eastman is forced to admit that the
will stand in that respect on its final passage is of time
is not ripe for this ultimate solution. But it
course a mere matter of conjecture, but as an indica- would
not be doing justice to Mr.Eastman to convey
tion of the character of some of the changes we may the idea that his 350-page report
is nothing but a
note in passing that one request of the Secretary of plea
for public ownership. As a matter of fact, the
the Treasury is for authority to issue an additional report
is a broad-minded discussion of the troubles
$2,500,000,000 of Treasury notes above the present of
the railroads, with some sensible suggestions for
limit of $7,500,000,000.
dealing with them—pending Government control.
It may be, however, that in the end it will be
"Theoretically and logically, public ownership and
found that only certain non-essentials will be revised operation
meets the known ills of the present situawith reference to future issues. At all events, the' tion better
than any other remedy," Mr. Eastman
Washington correspondent of the New York "Herald
contends. "Public regulation of a privately-owned
Tribune,"in the comment in his dispatch from Wash- and
operated industry, reaching deeply into such
ington, Jan. 23, took occasion to speak of the conmatters as rates, service, capitalization, accounting,
servative implications of the Treasury announce- extensions and abandonments,
mergers and consoliment regarding its present financing, and to add dations,is a hybrid arrangement.
When an industry
that these were supported by the following authori- becomes so
public in character that such intimate
tative information from Administration quarters:
regulation of its affairs becomes necessary, in strict
"The Treasury projects orthodox routine financ- logic it would seem that it should cease
to masqueing in the coming six months. The operations will rade
industry, and the Government
private
as
a
be similar to those in the past, unless something
now unforeseen occurs in the fiscal situation. Under should assume complete responsibility,financial and
this program the only change will be that large otherwise." Mr. Eastman does not advert to the
financing offerings will necessarily come consider- fact that during the European war we had Government operation, and it proved a dismal failure. In
ably more frequently.
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Volume 138
Financial Chronicle
539
his estimation,"There is reason to believe that many itself. The results of this legislation, he observes,
of the dangers which are ordinarily seen in public have deviated somewhat from anticipations. As at
ownership and operation can be brought under con- first proposed, the Act had a comparatively simple
trol if suitable precautions are taken." To which purpose. The thought was, he observes, that the
he adds the further remark: "I incline to the belief railroads were wasting money by undue competition
that such ownership and operation will be the ulti- with each other and by inability to act together for
mate solution of the railroad problem. However, if the common good. They were enjoined to co-operate
and when that time arrives, the impelling motive in avoiding waste, and to further this end a Federal
will probably not be logic or theory, but the prac- Co-ordinator was appointed with power, subject to
tical one that private enterprise and capital will review by the Commission, to require action when
not be able to carry on successfully." The general necessary. Before the Act was passed, however, the
prayer, we are sure, will be that that day may be National Recovery legislation took form, with the
prime object of relieving unemployment. "Inevitfar off.
The most significant part, though, is that imme- ably economies in railroad operation are largely
diately after making this statement the Federal Co- labor-saving economies, and a program for the railordinator follows with the declaration that public roads which would add to unemployment appeared
ownership is not feasible. "Nevertheless, I am not inconsistent with the National Recovery program.
now prepared to recommend resort to public owner- The result was the restrictions on reduction in railship and operation. This is for the principal reason road employment which are contained in Section 7
that the country is not now financially in a condition of the Emergency Act.
Mr. Eastman here refers to a matter which has
to stand the strain of an acquisition of these great
received the attention which it merits. Mr.
not
properties, imposing burdens which cannot be definitely foreseen and might well, in present circum- Eastman is frank enough to say that the restricstances, be disproportionately severe. The danger tions referred to have prevented much actual accomwould be enhanced by the fact that there would be a plishment in the elimination of waste. Yet he concomparatively long period before the new system tends the Act is serving a useful purpose in the railcould be got into smooth-running order, and by the road world. "The original accent and emphasis,"
further fact that the railroad industry is now in a in his view,"were somewhat unfortunate. They crestage of accelerated evolution. This is true indeed ated the impression of a decaying industry from
of the entire transportation industry, and it is at which dead limbs and excrescences must be pruned,
least questionable whether the railroads alone could and which, to be saved, must be cut to the bone."
well be nationalized without including other forms It is gratifying to have Mr. Eastman say that this
of transport to some considerable extent. The Brit- was not in fact the thought behind the Act, yet such
ish Royal 'Commission of 1930 was unanimously of an impression was created. The fact is, Mr. Eastthe opinion that such inclusion would be necessary." man declares, that what the railroads chiefly need
There is obviously a great deal of common sense in is a new lease of life—a reinvigoration.
Mr. Eastman then makes certain observations
this observation.
Mr. Eastman also sees objections to any general which deserve to be taken to heart by everyone. He
consolidation. "Nor am I now prepared to recom- says: "Waste is more than a matter of duplicate
mend a grand consolidation plan. Any attempt to or unnecessary service or facility or labor. It can
make such a plan effective speedily would require be found in failure to provide the service and charge
new legislation. It would precipitate a controversy the rates which will bring maximum use and revin which many railroads, many communities, and enues to the rails. The thought is, not that econolabor would join with equal vigor and from which it mies in operation should be neglected, but that the
would be difficult to emerge. Disregarding this pursuit of such economies should be combined with
practical difficulty, I am convinced that such a con- efforts to increase the attraction and usefulness of
solidation would have to be compelled and that it railroad service, to the end that traffic and business
would not be wise, even if it be legally possible, to may be increased. The railroads will then take on
force so radical and far-reaching a change upon the the aspect, not of a decaying or waning industry,
country under present conditions. Nor am I per- but of one which is seeking economy and efficiency
suaded of the merits of any plan of consolidating for the sake of growth and development. When once
the railroads into a very few systems which would it is understood that this is the goal toward which
follow and emphasize regional lines, and retain, but endeavor strikes, the'attitude of railroad labor to
at the same time vitally disrupt, competitive con- economies in operation will, I believe, change maditions. These comments apply to a plan of enforced terially, particularly if steps are taken to prevent
and immediate consolidation."
distress in the process of readjustment. In the
What then shall be done? Mr. Eastman himself administration of the Emergency Act, this thought
puts this question, and he answers it as follows, with of economy which aims at growth of business has
considerable force and merit: "There are possibili- been uppermost." Mr. Eastman enumerates numerties in the situation which I believe make it wise, ous studies of nation-wide scope which are under
quite apart from existing economic conditions, to way with that end in view. He says he is optimistic
postpone the immediate consideration of any radi- • about these studies. "It is possible that many of
cal or major change ii the organization and conduct the objectives which are sought in grand consolidaof the railroad industry. In the present stage of tion plans or even in public ownership and operatransportation evolution these possibilities merit tion can be attained through co-ordination, pooling
thorough exploration and are likely to throw needed arrangements and a better organization of the
light on the railroad future." As a preliminary, the industry."
In view of the observations already quoted above,
Co-ordinator of Transportation deems it essential to
enter into a brief discussion of the Emergency Act it is almost needless to say that Mr. Eastman urges
540
Financial Chronicle
that the restrictions upon reduction in railroad labor
employment now contained in Section 7 of the Emergency Act should be changed. His observations on
that point go directly to the mark. He says: "They
(the restrictions) go beyond what is reasonable and
stand in the way of improvements in operation and
service, which in the long run will be of advantage
to railroad labor. The employees cannot with wisdom oppose progress which will stimulate the growth
and development of the industry. It is right and
proper, however, that where changes in methods of
operation or administration are made, not because
of lack of business, but for the primary purpose of
performing work more efficiently, salvage of the
employees should be a charge upon the savings
effected within reasonable limits." He says that a
special report on this matter will later be transmitted, but also expresses the opinion that "If general business conditions improve and if the efforts
of the carriers are directed primarily to increase
in traffic and secondarily to economies, the labor
situation should be much less difficult than it is
now.,,
As to railroad credit, Mr.Eastman is of the opinion
that Government aid will be required for a considerable time to come. He declares that "railroad
credit from private sources will in any event be
negligible for some time." As to this, it is quite
possible he may not be sufficiently optimistic, but
what he says about the need for dealing with such a
situation, if it continues, must unhesitatingly be
accepted: "The dependence in this period must be
on Government credit This should be extended
freely, to the extent that there is reasonable security
for sound and well-considered expenditures which
will add to employment and improve service to the
public. Where funds are sought to meet debt maturities, either of interest or of principal, the policy
now embodied in the Reconstruction Finance Corporation Act and the Emergency Act should be observed and somewhat amplified. That is, new Government credit, or the term of existing Reconstruction Finance Corporation loans, should not be extended, if it appears to the Inter-State Commerce
Commission that the carrier is in need of financial
reorganization in the public interest. This principle might appropriately be modified to permit
loans to meet maturities of underlying securities
which the Commission believes would not be disturbed in a reorganization.
Reorganizations of carriers, now or hereafter, in
insolvency or bankruptcy should be effected as
speedily as practicable, in the view of the Federal
Co-ordinator, and in a manner which will result in a
very material reduction in fixed charges. Mr. Eastman well says that the railroad credit problem is
critical in its importance. Then adds the following,
with which no fault can be found: "Government
credit to a privately owned industry is defensible
only as a temporary expedient. If private credit
begins to revive, the Commission can be helpful in
stimulating it by taking appropriate action with
respect to undue accumulation of funded debt, the
establishment of sinking funds or other reserves, and
the regulation of rates." Altogether, there is, as
we have already said, much sensible advice, and the
expression of sound judgment, in this report of the
Federal Co-ordinator, notwithstanding his strong
leaning toward Government ownership.
Jan. 27 1934
UCH comfort is to be derived from the greater
deliberation which the United States Senate
is pursuing in considering President Roosevelt's
measure for devaluing the dollar, and such staunch
defenders of the national honor and integrity as
Carter Glass and those associated with him in opposing some of the especially objectionable features of
the measure are deserving of the highest praise.
The words used by Mr. Glass in denouncing the
whole proposition in unmeasured terms were not a
whit too strong. The opposition in the Senate has
not accomplished much in modifying any of the
essential provisions of the whole scheme, but at least
they have succeeded in putting a time limit on
the existence and use of the stabilization fund of
$2,000,000,000 instead of making it a permanent
feature, though they have not succeeded in preventing the concentration of unparalleled powers in the
hands of the Secretary of the Treasury, the amendment for substituting a board of five members in
place of the Secretary having been defeated.
As the bill now stands the existence of the stabilization fund will be limited to a period of two years,
with an additional year at the discretion of the
President instead of becoming a permanent feature
as provided in the measure as it passed in the House
by the overwhelming vote of 360 to 40, on Saturday
last. But even this slight modification is no mean
achievement, considering how the bill was driven
through the House with a speed that left little time
for debate and discussion. It is undeniable, of
course, that there is a mass of public sentiment behind the devaluation proposal, mere expediency
being the controlling consideration, in the belief
that devaluation will bring the revival in business
and rise in commodity prices which everyone is so
anxious to see established. In such circumstances
matters of principle and of ethics count for little.
The country has suffered unparalleled business depression for over four years, and everything that
promises a change for the better is seized upon as a
drowning man clutches a straw. Nothing else
counts, the promise of better things being the only
consideration that makes an appeal, and an appeal,
too, which it is hard to resist after such a long period
of distress.
M
HE Federal Reserve condition statements this
week are again colorless, by which we mean
that they show no new features as compared with
recent previous weeks, the changes all being along
the same line as before. The volume of Reserve
credit outstanding has been somewhat further reduced, this being due, as in previous weeks, to diminished borrowing on the part of the member banks, as
shown by a diminution in the discount holdings of
the 12 Reserve institutions, and by a reduction in
the holdings of acceptances purchased in the open
market, some of the bills held having evidently run
off and new supplies of bills not having been offered
to the Reserve banks. The discount holdings of the
12 Reserve banks have fallen from $101,315,000
Jan. 17 to $97,220,000 Jan: 24, and the holdings
of acceptances have dropped from $111,939,000 to
$104,126,000. Holdings of United States Government securities have again continued unchanged,
the amount this week being reported at $2,431,739,000 as against $2,431,790,000 last week. The
result is that the volume of Reserve credit outstand-
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Volume 138
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Financial Chronicle
ing, as measured by the total of the bills and securities held, stands at $2,634,388,000 as against $2,646,457,000 last week.
Federal Reserve notes outstanding have also undergone further contraction through the continued
return of money from circulation. The amount of
Federal Reserve notes in circulation this week is
$2,931,359,000 as against $2,959,556,000 last week,
and the amount of Federal Reserve bank notes
stands at $203,176,000 this week as against $204,536,000 last week.
The member banks have improved their position
in every direction. Besides having reduced their
borrowings at the Reserve banks, as already shown,
the reserve account of the member banks increased
during the week from $2,788,073,000 to $2,850,961,000. This increase in member bank deposits
brought the total deposits of the 12 Reserve banks
up from $3,036,890,000 to $3,053,023,000, notwithstanding that Government deposits were reduced
from $105,356,000 to $65,240,000. With larger deposits the cash reserves required against the same
also increased, but on the other hand the cash reserves required against circulation diminished inasmuch as the volume of Federal Reserve notes outstanding was reduced, as already pointed out The
gold holdings of the 12 Reserve institutions were
only slightly changed during the week, being reported at $3,559,963,000 Jan. 24 against $3,560,304,000 on Jan. 17. The result altogether is that
the ratio of cash reserves is a trifle larger this week
than it was last week. In other words, the ratio
of total gold reserves and other cash to deposit and
Federal Reserve note liabilities combined stands at
63.6% against 63.5% last week. The item of gold
held abroad which a week ago was reported at
$4,319,000 this week is down to $3,120,000. This
would indicate that some of the gold held a week
ago has been shipped to this country. A further
explanation may be found in the fact that the New
York Federal Reserve Bank yesterday reported
$5,162,700 gold released from earmark for foreign
account without there having been any gold exports.
The amount of United States Government securities
held as part collateral for Federal Reserve note
issues has further diminished during the week from
$563,100,000 to $558,800,000.
TNCREASED or renewed dividend declarations by
1 corporate entities have again been a feature the
present week. The Pennsylvania RR. declared a
dividend of 50c. a share on its stock, payable
March 15 1934; a similar distribution was made on
the stock on March 15 last year, and the latest action
enables the company to continue its record of having
made some distribution uninterruptedly in every
year since 1847. The Norfolk & Western Ry. declared
an extra dividend of 2%, in addition to the usual
quarterly dividend of 2% on the common stock, payable on March 19. Liggett & Myers Tobacco Co.
declared an extra dividend of 4% and the regular
quarterly dividend of 4% on the common and common B stocks, all payable March 1. An extra dividend of 4% has been paid in March of each year
since and including 1925; in addition, in 1926 and
1927 a 10% stock dividend was paid. Bristol-Myers
Co. of Delaware declared an extra dividend of 10c.
a share, in addition to the regular quarterly divi.
dend of 50c. a share on common, both payable
March 1; these dividends are at the same rate as
541
those paid by the same company on Dec. 1 1933,
the first dividends following the company's segregation from Drug, Inc. Eaton Manufacturing Co. declared a dividend of 25c. a share on common, payable Feb. 15, as compared with 20c. a share paid
on Nov. 15 1933, this last having been the first
dividend paid since May 2 1932, on which date a
quarterly dividend of 121/
2c. a share was distributed.
Northwestern Public Service Co. declared a dividend of 871/
2c. a share on the 7% cumul. pref. stock
and a dividend of 75c. a share on the 6% cumul. pref.
stock, both payable March 1; regular quarterly payments of 13
4% on the 7% pref. and 11/
2% on the
6% pref. stock were made to and including June 1
1933, but none since. The Bigelow-Sanford. Carpet
Co., Inc., declared a special dividend of $1 a share
on the common dock, payable Feb. 15, this being
the first distribution since Aug. 1 1930. The Manhattan Shirt Co. declared two quarterly dividends
of 15c. a share on common, payable March 1 and
June 1 1934, these being the first payments since
Dec. 1 1931. A. Stein & Co. declared a special dividend of 25c. a share on common, payable Feb. 24,
this being the first distribution since Feb.15 1932.
HERE was a small increase in the value of the
foreign trade of the United States in the closing month of last year, both in merchandise exports
and imports. The greater part of the increase in
exports, however, was due to the higher value of
cotton exports. In bales, cotton exports last month
were less than in November, and considerably under
those for December 1932, but the higher value of
cotton raised the value of exports for December 1933
over that for the corresponding month in 1932.
Total exports in December last were valued at $192,000,000 and imports at $133,000,000, an export trade
balance of $59,000,000. In November last exports
amounted to $184,000,000 and imports to $128,000,000, the excess of exports for that month being
$56,000,000, while for December 1932 merchandise
exports were valued at $131,614,000 and imports at
$97,087,000, the excess of exports amounting to only
$34,527,000.
For the calendar year 1933 exports amounted to
$1,675,020,000 and imports to $1,448,640,000, the
excess value of exports for the year being $226,380,000. In 1932 the value of exports was $1,611,016,000 and the value of the imports $1,322,774,000,
the excess of exports •being $288,242,000. The increase in the value of both exports and imports last
year was due entirely to the larger movements that
appeared in the last few months of the year. With
the exception of 1932, both exports and imports last
year were lower in value than for many preceding
years.
Cotton exports last month amounted to 837,756
bales, compared with 933,212 bales in November and
1,058,924 bales in December 1932. The value of
cotton exports last month continued higher than for
December 1932, notwithstanding the much smaller
movement in the closing month of 1933. The value
for the latter was $44,296,356, whereas for the
heavier movement in December 1932 the value of
cotton exports was $38,982,142. Exports other than
cotton last month amounted to $147,705,000, whereas
in November the amount was $135,225,000 and in
December 1932, $92,632,000.
Exports of gold last month increased over November to $10,815,000, while gold imports were little
T
542
Financial Chronicle
changed at $1,687,000. For last year gold exports
were $366,652,000 and imports $192,917,000, exports
exceeding imports by $173,735,000. In 1932
gold exports amounted to $809,528,000 and imports to $363,315,000, the excess of exports being
$446,213,000.
HE New York stock market has continued its
upward course the present week and the rise
has been virtually uninterrupted day after day. The
advances have not been spectacular on any particular day, but have had as their distinctive feature,
the fact that the market has moved almost steadily
upward, making the cumulative gains quite substantial in a number of instances. The bond market has
at the same time been extremely active and also
steadily advancing, with the volume of trading extremely large. Buying of bonds, indeed has been
carried on with great confidence and the gains for
the week in the case of the lower-priced issues have
in many instances been more striking than in the case
of stocks. The tone all around has been strong and
confident with sentiment strongly bullish. The underlying consideration seems to be the devaluation
project of the Administration at Washington. The
disposition is to regard the devaluation program as
assuring both a higher level of commodity prices as
designed and also growing trade revival. In addition, the new and larger dividend distributions by
some well known corporations have been a stimulating feature. The action of the Pennsylvania RR.
in making a dividend distribution came somewhat as
a surprise as there had been more or less doubt as to
whether a dividend distribution could be counted
upon, and the extra dividend on Norfolk & Western
common has been also favorably received. Trade
indications were much the same as in previous weeks
and in the main, appeared to point in the direction
of a slightly rising volume of trade. The American
Iron & Steel Institute on Monday reported that the
steel companies were employed at 32.5% of capacity,
which was slightly lower than the rate of the previous
week, which was 34.2%, but these slight changes in
steel operations from week to week are not looked
upon as possessing any special significance. The
production of electricity by the electric light and
power industry of the United States for the week
ended last Saturday was reported at 1,624,846,000
kwh. as against 1,484,089,000 kwh. in the corresponding week of 1933, being an increase of 9.5%
against 10.1%increase the week previous and 9.7% the
week preceding. The striking feature was that again
the output ran in excess of that of two years ago.
Commodity prices were well maintained even if they
did not show any very marked rising tendency.
Foreign exchange rates moved lower most of the
time, though within a relatively narrow range, and
the gold value of the dollar improved as against the
European currencies. That howeIer, did not appear
to act as a damper on those speculating for a rise in
security values.
As indicating the course of the commodity markets
the May option for wheat at Chicago closed yesterday at 899/8c. as against 91c. the close on Friday of
last week. May corn at Chicago closed yesterday
8c. as against 523
at 523/
4c. the close the previous
Friday. May oats at Chicago closed yesterday at
375Ac. against 39c. the close on Friday of last week.
May rye at Chicago ended yesterday at 613/
2c.
against 633'c. the close on Friday of last week, while
T
Jan. 27 1934
May barley at Chicago closed yesterday at 51c.
against 52%c. the close on the previous Friday.
The spot price for cotton here in New York yesterday
was 11.35c. as against 11.65c. on Friday of last week.
The spot price for rubber yesterday was 10.13c.
against 9.37c. the previous Friday. Domestic copper
was quoted yesterday at 83.(c. as against 83Ac. the
previous Friday. Silver again moved within narrow
limits. In London the price yesterday was 19 5-16d.
per ounce as against 193
%d. on Friday of last week.
The New York quotation yesterday was 43.8c. as
against 44.90c. the previous Friday. In the matter
of the foreign exchange, cable transfers on London
yesterday closed at $4.963 as against $5.02% the
close the previous Friday, while cable transfers on
Paris closed yesterday at 6.21c. against 6.273/2c. the
close on Friday of last week. Call loans on the New
York Stock Exchange again continued at 1% per
annum throughout the entire week.
Trading was of growing proportions. On the New
York Stock Exchange the sales at the half-day session
on Saturday last were 1,954,440 shares; on Monday
they were 2,663,410 shares; on Tuesday 2,383,740
shares; on Wednesday 3,356,780 shares; on Thursday
2,267,500 shares, and on Friday 2,506,640 shares.
On the New York Curb Exchange the sales last
Saturday were 255,660 shares; on Monday 426,780
shares; on Tuesday 332,190 shares; on Wednesday
491,055 shares; on Thursday 282,753 shares, and on
Friday 306,690 shares.
As compared with Friday of last week, prices again
show gains nearly all around, though the gains in
most instances are not very large. General Electric
closed yesterday at 223/
2 against 223/i on Friday of
last week; North American at 19 against 183/2;
Standard Gas & Electric at 9% against 93; Consolidated Gas of N. Y. at 423 against 43%; Brooklyn
2; Pacific Gas &
Union Gas at 723/
2 against 713/
Electric at 18% against 19; Columbia Gas & Electric
at 143/
2 against 14%; Electric Power & Light at 63/2
% against
against 6%; Public Service of N. J. at 383
40; J. I. Case Threshing Machine at 77% against
773
4; International Harvester at 42% against 43%;
4; MontSears, Roebuck & Co. at 463 against 463
gomery Ward & Co. at 26% against 26%; Woolworth
at 48% against 48; Western Union Telegraph at 603/i
against 61%; Safeway Stores at 52 against 513/
2;
American Tel. & Tel. at 1173/ against 118%; Ameri8; Commercial Solvents
can Can at 101 against 1003/
Shattuck
& Co. at 83 against
339;
against
at 3432
8%,and Corn Products at 833/ against 793.
Allied Chemical & Dye closed yesterday at 1543/2
against 153 on Friday of last week; Associated Dry
/
2 against 143'; E. I. du Pont de NeGoods at 151
mours at 99 against 99%; National Cash Register A
at 21% against 203/2; International Nickel at 22%
against 223/
2; Timken Roller Bearing at 343 against
33%; Johns-Manville at 63% against 633/2; CocaCola at 99 against 983; Gillette Safety Razor at 11%
against 103; National Dairy Products at 153.
against 159; Texas Gulf Sulphur at 40 agains 403/
2;
Freeport-Texas at 45 bid against 463/s; United Gas
Improvement at 173/ against 173,; National Biscuit
at 483/2 against 47%; Continental Can at 793
against 80%; Eastman Kodak at 883/ 'aainst 863/2;
Gold Dust Corp. at 193/2 against 193/
2; Standard
Brands at 243 against 23; Paramount Publix Corp.
ctfs. at 3% against 33/s; Westinghouse Elec. & Mfg.
at 43 against 4332; Columbian Carbon at 643 against
653j; Reynolds Tobacco, class B at 423
/
8 against
Volume 138
Financial Chronicle
413/2; Lorillard at 183/i against 17%; Liggett &
Myers, class B at 90 against 84, and Yellow Truck Sr
Coach at 53
4 against 5%.
Stocks allied to or connected with the alcohol or
brewing group for the most part moved within narrow limits. Owens Glass closed yesterday at 884
against 843
4 on Friday of last week; United States
Industrial Alcohol at 59% against 583
4; Canada Dry
at 263/2 against 27; National Distillers at 27 against
253/2; Crown Cork Sr Seal at 34 against 34%; Liquid
Carbonic at 30% against 293/2, and Mengel Sz Co. at
9% against 1034.
The steel shares were strong as a rule. United
5
States Steel closed yesterday at 55% against 54%
on Friday of last week; United States Steel pref. at
983/2 against 96%; Bethlehem Steel at 44% against
43%, and Vanadium at 26 against 253/2. In the
motor group, Auburn Auto closed yesterday at 515
%
against 52% on Friday of last week; General Motors
5 against 55%;
7
at 393/2 against 3732; Chrysler at 54%
Nash Motors at 30% against 29%; Packard Motors
at 5 against 438; Hupp Motors at 63/2 against 63/8,
and Hudson Motor Car at 21% against 17%. In
the rubber group, Goodyear Tire Sr Rubber closed
yesterday at 385
% against 38% on Friday of last
week; B. F. Goodrich at 16 against 15 8,and United
States Rubber at 193/i against 183/2.
The railroad shares have held their own pretty
well. Pennsylvania RR. closed yesterday at 353
4
against 36 on Friday of last week; Atchison Topeka Sr
Santa Fe at 683/2 against 703; Atlantic Coast Line
at 48 against 483
4; Chicago Rock Island dr Pacific
at 4% bid against 432; New York Central at 373/2,
against 385
%; Baltimore dr Ohio at 28 against 28%;
New Haven at 213/2 against 19%; Union Pacific at
1243
4 against 124; Missouri Pacific at 5 against 4 8;
Southern Pacific at 273
4against 27; Missouri-KansasTexas at 12% against 133/g; Southern Ry. at 32%
against 3034; Chesapeake dr Ohio at 44 against 44;
Northern Pacific at 29 against 283/s, and Great
Northern at 263/2 against 259.
The oil stocks showed considerable firmness.
Standard Oil of N. J. closed yesterday at 47 against
4634 on Friday of last week; Standard Oil of Calif.
at 41% against 40; Atlantic Refining at 323/2 against
31. In the copper group, Anaconda Copper closed
yesterday at 153/
8, against 1634 on Friday of last
week; Kennecott Copper at 21% against 213/8;
American Smelting er Refining at 433
4 against 4434;
Phelps-Dodge at 173/2 against 173
4; Cerro de Pasco
Copper at 3434 against 353/2, and Calumet er Hecla
at 534 against 534.
RENDS were diverse this week on stock exchanges in the leading European financial
centers. There was active trading on the London
Stock Exchange in almost all sessions, and the tendency was generally upward. The Paris Bourse and
the Berlin Boerse were irregular, with the more
emphatic movements toward lower levels. Uncertainty continued to prevail in all markets regarding
the effects of the monetary policy in the United
States, and apprehensions were expressed with respect to the use of the $2,000,000,000 exchange "depreciation" fund, as the London market terms it.
Prime Minister MacDonald of Great Britain gave
expression to these feelings in a speech at Leeds,
England, Tuesday, in which he declared that it is
most essential for the great nations to reach agreements about the international exchange values of
T
543
their currencies. It was made clear in London that
the Prime Minister's remarks were not in any sense
a declaration of official policy. As the shock of
American monetary developments wore off, European markets again paid more attention to the
course of trade and production. British and German indices remain favorable in trend, but the
French figures reflect a diminishing turnover of
merchandise in that country. French unemployment totals are increasing week by week, in keeping
with the business indices.
The London Stock Exchange began the week with
an active and cheerful session, in which more attention was paid speculative securities than investment
issues. British funds showed small fractional losses,
but gains were recorded in most of the industrial
securities. Home railway shares were in excellent
demand, and most international issues also improved. There was less activity Tuesday, and also
more irregularity. British funds were better, but
industrial issues showed the effects of profit-taking,
and only a few issues made progress. International
stocks eased, while gold mining issues also receded.
The trend Wednesday was quite cheerful, and gains
were recorded in almost all departments of the market. British funds moved fractionally higher, and
most industrial stocks also gained, with the movement most pronounced in the tobacco issues. International stocks were stimulated by sharp gains in
oil shares. Activity increased Thursday, with the
general tendency much the same as in the previous
session. British funds were quiet and barely
changed, but industrial stocks moved up under the
leadership of the tobacco group of issues. The gains
were somewhat diminished by profit-taking near
the close. Anglo-American trading favorites were
in good demand in the international section. Dealings were quiet yesterday, with British funds uncertain, but industrial stocks and international issues
improved.
The Paris Bourse was dull in the initial session
of the week, with changes small in most securities.
Rentes remained steady, but among the equities
there were a few substantial recessions, and these
movements set the tone of the market. Trading was
on an extremely small scale at Paris on Tuesday,
and even small transactions sufficed to affect quotations. The lack of buying interest caused a slow
downward drift of prices. Rentes held their ground,
however, and a few equities also were unchanged.
There was a modest increase in business Wednesday,
owing to an overnight accumulation of orders. The
market was firm while these were being executed,
but quotations again moved slowly downward thereafter, and most of the initial gains were lost before
the close. Rentes showed small recessions. Thursday's opening was again firm, but a reaction developed which carried quotations of the more speculative issues off sharply for the day. Oil shares and
utility stocks proved the only exceptions to the
general trend. Modest gains were recorded in
quiet trading yesterday. Rentes were better as well
as equities.
The Berlin Boerse started the week with quiet
trading and unimportant changes in quotations.
Issues of steel, mining and utility companies were
slightly improved at first, but the initial impetus
soon wore off, and in a downward movement which
followed almost all the gains were lost. Trading
Tuesday was on a very small scale, even some of
544
Financial Chronicle
the ordinarily active stocks remaining unquoted for
some time after the opening. There was little buying, but selling pressure also was absent and changes
were nominal. A 'definite downward tendency developed Wednesday on the Boerse, despite further
small dealings. Apprehensions regarding the maintenance of dividends on some brewery stocks caused
declines in this group, and sporadic liquidation developed also in other sections. Further losses were
general in Thursday's trading, but the decline exceeded a point only in a few of the more active stocks.
Some of the heavy industrial issues, such as I. G.
Farbenindustrie, were well maintained. An upward
trend was established early yesterday and maintained throughout the session. Gains were substantial in the more speculative stocks.
ISCUSSION of the transfers of interest on the
long-term external debts of German municipalities, banks and corporations was started in Berlin, Thursday, after some additional preliminary
maneuvering. Dr. Hjalmar Schacht, President of
the Reichsbank, called the meeting specifically to
consider requests for special treatment of Dutch and
Swiss holders of German bonds. The matter has
far outstripped such limitations, however, as British
and American creditors' representatives made it
plain they would insist upon a general discussion,
while steps also have been taken by the United States
Government. Lack of agreement anywhere on the
essentials of this matter was indicated when the
meeting began, Thursday. Dr. Schacht was absent
from Berlin, plainly because of disagreement with
the German Ministry of Economics on some phases
of the problem. The creditors represented included
only those of the United States, Great Britain and
Switzerland. It is suggested in Berlin reports, however, that the absent Swedes will support the British
and Americans in their claims for equal treatment.
while the Dutch are aligned with the Swiss in favor
of special arrangements for 100% payment of bondholders in return for increased imports of German
goods. Dr. Fritz Dreyse, Vice-President of the
Reichsbank, presided, while the German views were
also presented by Dr. Ritter of the Foreign Office,
and Dr. Posse of the Ministry of Economics. It is
not expected by creditors' representatives, a Berlin
dispatch to the New York "Times" said, that any
increased transfers will result from the current conference. It is hoped on all sides, however, that
there will be a better understanding of the problem
after the meeting is concluded.
The Berlin conference originally was called for
last Monday, but it was postponed in order to leave
time for the arrival of the British and American
representatives. The latter are intent chiefly upon
reopening the settlement for the first six months
of this year, imposed by Dr. Schacht, which calls for
transfer of 30% interest in cash and 70% in scrip
redeemable at half its face value. President Roosevelt intervened in the situation last Monday, by
taking the unusual course of calling Dr. Hans Luther, the German Ambassador, to the White House,
for a review of the matter. It was stated at the
conclusion of the meeting that the President had
requested equal treatment of United States creditors
with those of other countries. Subsequently, it was
disclosed that the general question of trade relations
between Germany and the United States had been
covered in the conversation, with President Roose-
Jan. 27 1934
velt suggesting as the ultimate ideal an approximate
balance of international payments. Mr. Roosevelt
called to Ambassador Luther's attention, it is said,
that Dr. Schacht's figures on trade with the United
States, utilized to justify the cut in interest payments on bonds, are not sufficient to cover the matter, as they leave out of account American tourist
expenditures in Germany and remittances of immigrants. The Reichsbank issued statistics last Saturday showing average payments to other countries on
long-term bonds. As full interest payments are continuing in foreign currency on Young plan bonds,
and full amortization payments on Dawes plan
bonds, the averages are increased by taking the German Government indebtedness into consideration.
United States creditors as a whole receive 76% of
their total interest, on this basis, while British and
French bondholders receive, respectively, 87% and
96% of their claims.
_
ISARMAMENT discussions in Europe proceeded this week in the same faltering fashion
that marked all previous conversations on this important matter during the last two years. Direct
exchanges between France and Germany were continued, in the form of a German reply to the latest
French communication to Berlin. The German note,
couched in conciliatory terms, is said to support
the arguments previously made by Berlin for a shortterm army of 300,000 men, equipped with defensive
armaments, and it also asks pertinent questions regarding the disposition of the French colonial forces
and the possibility of any genuine reduction of
French offensive armaments. Only brief indications
of the contents a the German communication have
been made available. It is indicated rather definitely, however, that Berlin brought up the problem
of naval armaments in its note of Jan. 19, probably
with a view to German participation in any further
naval conference. The French reaction to the German note was pessimistic at first, but in a Paris
dispatch of Wednesday to the New York "Times" it
was suggested that France has become resigned to
the need of some concessions to the Reich.
A new element was introduced Tuesday, when
London reports indicated that a German note had
been received by the British Government asking for
suggestions that might lead to an adjustment of the
Franco-German controversy. It was hinted in the
British capital that a similar note had been sent by
the Reich to the Italian Government. In Paris the
belief prevailed that Great Britain and Italy soon
will move for a four-Power Conference to consider
the situation, and it was broadly hinted that any
such gathering might prove to be, in the armaments
field, what the Lausanne Conference was in the reparations field. There were statements in the Italian
press early this week, obviously inspired, which
urged intervention by Great Britain and Italy in
the direct conversations between the Paris and Berlin Governments. At Geneva the usual procedure
of postponing the formal sessions of the General
Disarmament Conference was again followed last
Saturday. A meeting of the Bureau, or Steering
Committee of the Conference, was scheduled for this
week, but it was quietly called off in order to provide more time for private negotiations. Arthur
Henderson, President, and other leaders of the Conference, decided to meet in London Feb. 13, when
they will decide if the Bureau is to be called into
Volume 138
Financial Chronicle
session. The chief function of the Bureau is to
decide upon plenary sessions.
545
connection with the nation-wide celebration of the
first anniversary of Chancellor Adolf Hitler's assumption of office. The action has aroused wideECISIVE action rarely has characterized the
spread interest, as it is assumed that the Chancellor
sessions of the League of Nations Council, and
will make the meeting the occasion for a review of
it caused no surprise for this reason when the last
the past year, and possibly also for an explanation
gathering of this body closed on Jan. 20 in the usual
of his foreign policy. The present Reichstag met
inconclusive fashion. The two chief problems before
only once, on Dec. 12, when details of organization
the seventy-eighth Council session were arrangewere arranged and the body adjourned in the record
ments for a plebiscite in the Saar area, and the
time of less than 10 minutes. Chancellor Hitler's
Chaco war between Bolivia and Paraguay. An eleccontrol of German political affairs now is undistion in the Saar area must be held in 1935 under the
puted. The Nazis are meeting opposition only from
Versailles treaty to determine whether the inhabitthe German clergy, who are objecting strenuously to
ants wish to retain their erstwhile allegiance to
the introduction of Nazi doctrines and methods in
Germany, to join France, or remain under League
their affairs. The control exercised by Chancellor
control. Germany was invited to join the discusHitler was illustrated last week by promulgation of
sion of the Council on this matter early last week,
a law which does away entirely with labor unions
but Berlin refused to send a representative. After a
and establishes a system of shop councils, wherefew perfunctory hearings, the Council decided last
under employers and employees alike are to be govSaturday to appoint a special committee of three
erned by a sort of "social honor" principle. The
members, who will study the question and report to
"leader," or employer, must make all decisions, but
the May meeting of the Council. The committee
he must exercise due care for the welfare of the
members are Baron Pompeo Aloisi of Italy, Salvador
"followers," or employees. This measure will bede Madariaga of Spain, and Jose M. Cantilo of
come effective May 1.
Argentina. They were instructed to study methods
calculated to insure the regularity of the election
OT the least important of the international difproceedings, with especial attention to be paid to
ferences in Europe is that between Austria
means of safeguarding the population against presand Germany, which has again come into prominence
sure or threats of any kind. They were also asked
owing to fears of the Vienna Government that Austo study any suggestions by the Saar Governing
trian Nazis, aided by their German brethren, soon
Commission regarding the maintenance of order
will attempt a "Putsch" and a political alignment
during the period of the plebiscite. The Council's
of the two Teutonic countries. Numerous rumors
action with regard to the war between Bolivia and
were circulated in Vienna this week that the AusParaguay over the boundaries of the two countries
trian Nazis will attempt a coup de etat on Jan. 30,
in the Gran Chaco area was even less conclusive.
the anniversary of Hitler's assumption of the ChanThe League's special commission, which is now in
cellorship in Germany. Extensive preparations
South America, was urged to continue its efforts
were made by Chancellor Engelbert Dollfuss and
toward a settlement.
his associates to ward off any such development.
UBLIC statements on Soviet-American relations It was made known in Geneva, Monday, that the
were made this week both by William C. Bul- Austrian Government had addressed a note to Berlitt, the American Ambassador to Russia, and by lin last week asking the German Government to
Alexander A. Troyanovsky, the Russian Ambassador prevent meddling by German Nazis in the Austrian
to the United States, but 'little was added to the situation. A specific pledge that the Reich will
meager stock of information regarding the possi- respect Austrian independence was requested, it
bilities of more extensive trade relations. Mr. Bul- is said. Information on this matter was placed belitt, in an address before the Chamber of Commerce fore some of the political leaders of other Powers
in Philadelphia, urged that "excessive" credits to who attended the League Council session last week.
foster trade with Russia be avoided in favor of a The matter was considered by Foreign Secretary
roughly equal exchange of goods between the two Sir John Simon of Great Britain, Foreign Minister
countries. "Credits in some measure no doubt are Joseph Paul-Boncour of France, and Baron Pampeo
justifiable, but they merely postpone the day when Aloisi of Italy, and it was made known Monday
goods have to be taken and credits in excessively that the League is prepared to summon its Council
large amounts must be avoided," he declared. At a in extraordinary session, if necessary, in order to
meeting in the Bankers'Club in this city, held under preserve the sovereignty and independence of Austhe auspices of the American-Russian Chamber of tria. Any such extraordinary session probably
Commerce, M. Troyanovsky remarked that he would would be held in Vienna. An official statement was
make the restoration of normal trade relations one issued in Berlin, Wednesday, to the effect that the
of the primary objects of his mission. The principal Austrian request probably will be rejected on the
obstacle to be overcome appears to be the difficulty ground that there is no foundation for the comwith credits, he said. It is worthy of note, mean- plaints of meddling by German Nazis in Austrian
while, that Secretary of the Treasury Henry Mor- affairs.
genthau Jr. issued orders, Wednesday, which will
MEETING in Zagreb, Yugoslavia, held
have the effect of removing discrimination of the
Jan. 20 to 23, the Foreign Ministers of the
United States mints against the receipt of gold of
Soviet origin, and will lift import restrictions on three Little Entente countries are reported to have
reached an understanding which may prove quite
' Russian lumber, pulpwood and safety matches.
important in European affairs. The Ministers of
NNOUNCEMENT was made in Berlin, Thurs- Czechoslovakia, Rumania and Yugoslavia accepted
day, that the all-Nazi Reichstag of Germany the draft of a treaty, to run for five years, wherewill be called in special session next Tuesday, in under they will engage mutually to guarantee one
D
N
p
TA
A
546
Financial Chronicle
another's frontiers. Greece and Turkey may be participants in this arrangement, it is suggested in reports from Belgrade, the Yugoslavian capital, and
efforts also are to be made to obtain the adherence
of Bulgaria. King Boris and Queen Giovanni, of
Bulgaria, visited King Carol of Rumania, at Sinaia,
this week, and it is understood the adherence of
Bulgaria to the treaty was discussed during the visit.
The pact provides, a dispatch to the New York
"Times" states, that all international problems
affecting the signatories shall first be dealt with by
mutual discussion, with the aim of presenting a
united front. The treaty has not yet been signed,
but it is expected that this formality will be completed soon after views have been exchanged by the
Rumanian and Bulgarian sovereigns. The Foreign
Ministers of the Little Entente States are understood to have discussed also the question of recognizing the Soviet Russian Government, but it is reported that no decision was reached on this point.
The Zagreb Conference originally was scheduled for
Jan. 8, but it was postponed owing to the assassination of Premier Ion G. Duca of Rumania, and the
hesitation of the Rumanian Foreign Minister,
Nicolas Titulescu, to accept the portfolio of foreign
affairs in the new regime. The Little Entente countries are reported in a United Press dispatch from
Zagreb to 'be united in their views on the disarmament question. A Balkan pact of economic co-operation was discussed.
LEVATION of Dr. Carlos Mendieta to the Presidency of the Cuban Republic already has been
followed by the recognition of his regime by the
United States Government, and it is now hoped that
the chaotic conditions in the Island will be rapidly
brought to a semblance of order. The Administration in Washington made a hasty survey of the new
situation in Cuba occasioned by the assumption of
the executive office by Dr. Mendieta on Jan. 18.
The unusual expedient was adopted, Monday, of informing the Washington diplomatic representatives
of all other American Republics of the contemplated
step. Formal recognition was extended Tuesday,
and similar action was announced the following
day by the Governments of Great Britain, France,
Italy, Spain, Mexico, Colombia, Peru, Uruguay, Bolivia, Chile and many other countries. It is hardly
to be doubted that this adjustment of Cuban international relations will contribute to a settlement of
the internal affairs of the Republic, which have been
in turmoil ever since the dictator, Gerardo Machado,
was ousted last summer. But the discontent of the
Cuban people is deep-seated, and it may be some
time before such manifestations as the forcible expropriation of sugar central and plantation owners
are brought under control.
The new President of Cuba moved with commendable energy last week to form a Cabinet and to begin
the task of solving the many problems confronting
the people. His popularity was a great asset, and
he was able to announce at the end of last week
that peace had been re-established. "From all indications I have received, public opinion is favorable
to my Government," Dr. Mendieta declared. "I desire to assure Cubans and foreigners alike that they
may have the utmost confidence that they will be
treated with right and justice." He indicated that
he will probably postpone the elections for a general
assembly called by the Government of Dr. Ramon
E
Jan. 27 1934
Grau San Martin. The date of April 22 originally
set is too early, as it will not allow sufficient time
for the organization of political parties, Dr. Menclieta said. He proposed the formation of a State
Council, in which representatives of commerce, industry, the workers, the political factions, the revolutionary organizations and other elements of
Cuban life would participate. This body would have
advisory legislative functions and would bear part
of the Executive responsibility. In naming his
Cabinet, Dr. Mendieta made some selections that
are universally commended. As Secretary of State
he chose Dr. Cosme de la Torrienta,former Ambassador to Washington, while Dr. Joaquin Martinez
Saenz was chosen Secretary of the Treasury. Dr.
Saenz held a similar post -in the de Cespedes Government last year.
The new situation in Cuba was discussed at some
length in Key West,Fla.,late last week, by Secretary
of State Cordell Hull and Jefferson Caffery, President Roosevelt's personal representative in Havana.
Secretary Hull indicated after the conference that
prospects were good for early recognition of the
Mendieta Government by the Washington Administration. Discussions in Washington followed last
Sunday between President Roosevelt and Secretary
Hull. The State Department issued invitations for
a conference at the White House, Monday, with the
representatives of all the Latin American Republics.
At the close of that meeting, Secretary Hull informed representatives of the press that the President had communicated to the Latin American diplomats the determination of the United Stated to
recognize the new Cuban regime. The President's
action with regard to the other Latin American
States has considerable significance of its own, as
it appears to be a new development in the "good
neighbor" policy which the Administration has
espoused.
Formal recognition followed as a matter of course
on Tuesday, notification to this effect being extended both through Mr. Caffery in Havana and
through the American Charge d'Affaires in Cuba,
H.Freeman Matthews. "I am immensely gratified,"
said Secretary Hull, in announcing the action,"that
the recognition of Cuba comes at this time. The
almost universal support (of the Mendieta Government) by the people of Cuba points strongly to the
maintenance of a stable government and the continuance of law and order in that country. It is the
devout wish of the friends of the Cuban people that
all forces of law and order in the Island will continue to unify themselves in support of the new
Government which has just been installed." Mr.
Hull announced also that 10 of the 16 American warships on duty in Cuban waters will be recalled immediately, while the other six probably will be withdrawn soon. He intimated that consideration now
will be given to alteration of the treaty of 1903 with
Cuba, with especial attention to be paid the Platt
amendment. Any changes of this nature will take
time, however, as they will require the consent of
the United States Congress as well as action by a
Cuban Constituent Assembly. Jefferson Caffery
will be the American Ambassador to Cuba, Mr. Hull
indicated. News of American recognition was received in Havana with general rejoicing by the
populace. The streets filled as if by magic, dispatches said, and Havana went "mildly crazy" in
its relief over the ending of the political turmoil.
Volume 138
Financial Chronicle
ECRETARY OF STATE CORDELL HULL
issued a highly optimistic statement on the
Seventh Pan-American Conference, last Sunday,
immediately after his return to Washington from
attendance at the Montevideo sessions last December. The tangible results of the gathering were
referred to only briefly by the Secretary, but he
expressed the belief that they are of wide import in
matters of better trade relations, multiplied friendly
contacts and tranquillity in international dealings.
Mr. Hull placed great emphasis, on the other hand,
upon the intangible gain for all American Republics
resulting from a new spirit of co-operation and solidarity. The attitude of Latin America toward the
United States has changed very decidedly, he declared, as there was a "surge of good will" toward
this country. This change is due, in Mr. Hull's
opinion, to the "good neighbor policy" which the
Administration has developed toward Latin America. "For the first time in the history of such
conferences there was no imposing bloc arrayed
against us," the Secretary stated. "Individual carpers and quibblers were thwarted. Suspicions were
disarmed. Understanding of a genuine sort became
the pervading element of the proceedings and cooperation a significant reality." Only a brief reference was made in the statement to the Chaco war,
which the Conference halted for a few weeks by an
armistice arrangement, but which again is being
waged with bitter intensity. Because the delegates
moved in common accord on the Chaco matter, Mr.
Hull expressed the "firm belief that the result will
be the elimination of warfare in this hemisphere."
S
ORLD attention was focused sharply this week
on the international affairs of the Far East,
where an increasingly delicate situation has prevailed ever since Japan conquered Manchuria and
set up her puppet-State of Manchukuo. Foreign
Minister Koki Hirota addressed the Japanese Diet,
Tuesday,on the relations of Tokio with other States,
and he made very clear in the course of his speech
that Japan intends to dominate the Far East. The
intentions of Japan, however, he declared, are essentially peaceful. Commanders of British naval units
in Asiatic waters assembled at Singapore, Tuesday,
to consider a Far Eastern situation which dispatches
reported as "ominous." It was considered not without significance that the Imperial Naval Conference
was the first summoned by Great Britain in the Far
East in five years. The question has aroused much
interest in France, from the viewpoint of a possible
alliance between Germany and Japan, since it is
held in some circles that both the German and Japanese Governments have expansionist designs centering on Russian territory. Holland, also, is debating the question of a Far Eastern dispute and its
possible effects on her important insular possessions
in the Pacific. Indeed, one of the British naval
experts at Singapore is understood to have returned
hastily to the naval base there from Java, where
he is said to have advised the authorities on
the defense of the Dutch possessions in the event
of a war.
In this situation any statement on Japanese foreign policy naturally is considered an important
event, and Foreign Minister Hirota's address last
Tuesday was scanned carefully in all countries.
Notwithstanding the Japanese withdrawal from the
League of Nations on March 27 last, Tokio's rela-
W
547
tions with "friendly Powers" have become even
closer and more cordial, Mr. Hirota remarked.
Manchukuo is making healthy progress, and the
Tokio Government will make unremitting efforts to
assist the growth of that State, he said. Maintenance of peace and order in North China is of
special concern to Japan, but even more important
is the stabilization of China as a whole, in Japanese
opinion. "The Japanese Government," the Foreign
Minister declared, "has serious responsibilities for
the maintenance of peace in Eastern Asia and has a
firm resolve in that regard."
No question that is intrinsically difficult of
solution exists between Japan and the United
States, Mr. Hirota continued. Japan fervently
desires America's friendship, and at the same
time hopes that the Japanese viewpoint will be
realized here, he indicated. Japanese relations
with Soviet Russia were considered at length in
the address before the Diet. Normal contact between the two countries was maintained for years,
Mr. Hirota pointed out, and even after the Manchurian incidents there was thorough mutual understanding. "However, more recently the attitude of
the Soviet Union toward Japan seems to have undergone a change of some sort," the Foreign Minister
continued. "It is most surprising and regrettable
that the Soviet Union should now take to broadcasting at home and abroad, through the press and
other channels, unwarranted criticisms directed
against Japan. Despite the fundamental differences
in both the theory and constitution of the State that
divide the two countries, we have always endeavored
to keep on good neighborly terms with Soviet Russia
and have sought the solution of all questions by
pacific means." Since Manchukuo was established
the Japanese Government has acted on the belief
that tranquillity in the Far East required a tripartite relationship among Japan, Manchukuo and
Russia, Mr. Hirota said, and he declared that Japan
is setting up no new military establishments along
the Manchukuo-Soviet frontier. Japan acted only
in pursuance of friendship in the proposed sale by
Russia to Manchukuo of the Chinese Eastern Railway, he asserted. The hope was expressed that the
negotiations for sale of the railway soon will be
resumed.
Foreign Minister Koki Hirota made some turther
clarifying comments on the international situation
in an address before the lower House of the Diet,
Wednesday. He informed the Parliament that he
is communicating with the United States Government in an attempt to facilitate a friendly solution
of "difficult problems likely to arise one or two
years hence." He referred, a Tokio dispatch to the
Associated Press said, to the naval issues that are
expected to arise in 1935 and 1936, when the present
naval treaties expire. Leaders of the Minseito party
in the Diet took up the discussion and insisted that
there are no questions between Japan and Russia,
or between Japan and the United States, which could
not be settled diplomatically. There was criticism,
a report to the New York "Times" remarked, of the
"crisis doctrine" of former War Minister Araki, and
condemnation of military interference with politics.
In Washington it was indicated at the State Department that no communication of any kind had been
received from Japan which might be interpreted as
the attempt at a friendly solution of difficulties
mentioned by Foreign Minister Hirota.
•
Financial Chronicle
548
Jan. 27 1934
HERE have been no changes this week in the portion of gold on hand to sight liabilities stands now
discount rate of any of the foreign central at 79.36%, as compared with 77.98% a year ago.
banks. Present rates at the leading centers are Below we furnish a comparison of the various items
shown in the table which follows:
for three years:
T
BANK OF FRANCE'S COMPARATIVE STATEMENT.
DISCOUNT RATES OF FOREIGN CENTRAL BANKS.
Country.
Austria-Belgium.- Bulgaria..._
Chile
Colombia__
Czechoslovakia-Danzig.— Denmark..
England...
Estonia—.
Finland —_
France_ _ _ _
Germany__
Greece
At-Oland
Rate in
Effect
Date
Jan.26 Established.
Previous
Raze.
5
335
7
435
4
Mar. 23 1933
Jan. 13 1932
Jan. 3 1934
Aug. 23 1932
July 18 1933
6
234
8
534
5
335
4
234
2
535
435
235
4
7
21.4
Jan. 25 1933
July 12 1932
Nov.29 1933
June 30 1932
Jan. 29 1932
Dec. 20 1933
Oct. 9 1931
Sept.30 1932
Oct. 13 1933
qpnt IR 1922
435
5
3
235
635
5
2
5
735
R
Country.
Rate in
Effect
Date
Jan.26 Established.
Changes
for Week.
Previous
Rate.
Hungary__ 435 Oct. 17 1932 5
335 Feb. 16 1933 4
India
June 30 1932 334
Ireland_ _
3
Dec. 11 1933 335
3
Italy
Japan
3.65 July 3 1933 4.38
435 Aug. 16 1933 5
Java
Jan. 2 1934 7
Lithuania
6
Norway._ _ 335 May 23 1933 4
Oct. 291933 6
Poland.... 5
Portugal
534 Dec. 8 1933 6
Rumania.. 6
Apr. 7 1933 6
Feb. 21 1933 7
South Africa 4
6
Oct. 22 1932 535
Spain
Sweden.... 235 Dec. 1 1933 3
35
Jan. 22 1931
Switzerland 2
Jan. 19 1934, Jan. 20 1933. Jan. 22 1932.
Francs.
Francs.
Francs.
Francs.
—93,422,039 77,160,582,755 82,305.917.155 70.689.195.133
+1,000,000
16,705.350 2,935,476,777 9,454,275,009
Gold holdings
Credit bats, abroad_
aFrench commercial
bills discounted.. —101,000,000 3,925,008,861 2,608,660,258 5,833,554,792
b Bills bought abr'd No change.
1,128,201,468 1,494,097,243 10,077,739,232
Adv. agt. securs
—35,000,000 2,914,390,125 2,556,837,782 2,780,389,269
Note circulation.... —1,145,000,000 79,693,195,700 83,025,891,490 3,364,203,575
Cred. curr. accts.__ +873,000,000 17,530.365,917 22.515,212,141 28,657,315,242
Proportion of gold
on hand to sight
liabilities
+0.12%
79.36%
77.98%
63.10%
a Includes bills purchased in France. b Includes bills discounted abroad.
HE Bank of Germany in its statement for the
In London open market discounts for short bills
third quarter of January records a loss in gold
on Friday were 1%, as against 1% on Friday of and bullion of 3,145,000 marks. The Bank's gold
last week and 1% for three months' bills, as against now amounts to 380,329,000 marks, which com1®1 1-16% on Friday of last week. Money on call pares with 806,551,000 marks a year ago and
in London yesterday was 4
3 %. At Paris the open 956,397,000 marks two years ago. Increases appear
market rate remains at 23.1.7
0 and in Switzerland in the following items: Reserve in foreign curat 1M%.
rencies of 5,080,000 marks; silver and other coin of
58,259,000 marks; notes on other German banks
HE Bank of England statement for the week of 2,813,000 marks;investments of 12,885,000 marks;
ended Jan. 24 shows an increase of £35,866 in other assets of 35,420,000 marks; other daily maturing
gold holdings and this together with a contraction of obligations of 80,080,000 marks, and other liabilities
£1,625,000 in note circulation, brought about an of 11,074,000 marks. Notes in circulation reveal
increase of £1,661,000 in reserves. Gold holdings now a contraction of 124,502,000 marks, reducing the
total £191,722,019 in comparison with £124,390,307 total of the item to 3,229,581,000 marks. Circulaa year ago. Public deposits fell off £6,551,000 while tion last year aggregated 3,143,757,000 marks and
other deposits rose £2,877,410. The latter consists the previous year 4,197,982,000 marks. Bills of
of bankers' accounts which increased £3,078,981 and exchange and checks and advances show decreases
other accounts which fell of £201,571. Proportion of 142,980,000 marks and 1,680,000 marks reof reserve to liability rose to 52.15% from 50.06% a spectively. The proportion of gold and foreign
week ago, last year the ratio was 31.28%. Loans currency to note circulation is now at 12.2%, as
on government securities fell off £2,978,000 and those against 29.3% a year ago. A comparison of the
on other securities £2,326,285. The latter consists various items for three years appears below:
of discounts and advances which decreased £170,135
REICHSBANK'S COMPARATIVE STATEMENT.
and securities which rose £2,156,150. The discount
Changes
for Week.
Jan. 23 1934. Jan, 23 1933. Jan. 23 1932.
rate did not change from 2%. Below are the different
Reichstnarks. Relchsmarks. Reichsmarks. Reichsmarks.
Ands—
figures with comparisons of previous years:
—3,145,000 380,329,000 806.551,000 956,397,000
Gold and bullion
T
T
BANK OF ENGLAND'S COMPARATIVE STATEMENT.
1934.
Jan. 24.
1933.
Jan. 25
1932.
Jan. 27
1931.
Jan. 28
1930.
Jan. 29
£
£
£
£
£
a 364,212,000 353,237,928 345.868,570 348,824,255 348,017.972
Circulation
12,815,000 11,652,619 15,321,152 19,359,578 14,592,859
Public deposits
154,966,242 135,848,706 112,512,117 88,530,858 103,450,605
Other deposits
Bankers accounts_ 118,060,089 103,372,480 74,304.019 55,162,756 67,463.302
Other accounts... 36,906,153 32,476,226 38,208,098 33,368,102 35,987,303
Government securs
78,792,057 90,602,390 45,310,906 41,086,247 54,300,855
19,598,285 28,858,005 50,142,935 31,570,506 19,476,470
Other securities
Disct.& advtuices. 8,097,940 11,562,413 12,046,728 9,747,914 5,500,023
11,500,345 17,295,592 37,196,207 21,822,592 13,976,447
Securities
Reserve notes & coin 87,510,000 46.152,379 50,481,263 53.316,981 62,410.196
191,722,019 124,390,307 121,349,833 140,141,236 150,428,168
Coln and bullion_
Proportion of reserve
39.48%
31.28%
49.41%
to liabilities
52.15%
52.86%
Rank ruts*
211
2.1.
611
2.7.
3%
a On Nov.29 1928 the fiduciary currency was amalgamated with Bank of England
note issues adding at that time £234.199.000 to the amount of Bank of England notes
outstanding.
HE weekly statement of the Bank of France,
dated Jan. 19, shows a decline in gold holdings
of 93,422,039 francs. The total of gold is now
77,160,582,755 francs in comparison with 82,305,917,155 francs a year ago and 70,689,195,133 francs
two years ago. An increase appears in credit balances
abroad of 1,000,000 francs and in creditor current
accounts of 873,000,000 francs, while French commercial bills discounted and advances against securities decreased 101,000,000 francs and 35,000,000
frans respectively. Notes in circulation record a
large decrease, namely 1,145,000,000 francs. Circulation now stands at 79,693,195,700 francs as compared with 83,025,891,490 francs last year and
83,364,203,575 francs the previous year. The pro-
T
Of which delve. abroad
Res've in foreign cuff_
Bills of exch. and checks
Silver and other coin
Notes on 0th. Ger. bks_
Advances
Investments
Other assets
Liabilities—
Notes in circulation__
Other daily matur. obi*
Other liabilities
Propor.of gold & foreign
on., tn nntsa nirtml.n
39,548,000
38.116,000
No change.
83.872.000
13,121,000 114,556,W 151,288,000
+5,080.000
—142,980,000 2,636,052.000 2,295,940.000 3,413,761,000
347,240,000
+58,259,000
351,324.000 221,995.000
15,483,000
+2,813,000
15,983,000
11,515.000
62,442,600
—1,680,000
67.891,000 103,127,000
+12,885,000 609,083,000 398,830,000 160,646.000
+35,420,000 563,387,000 814,926.000 910,160,000
—124,502,000 3,229,581,000 3,143,757,000 4,197.982,000
+80,080,000 537,050,000 387.184,000 370,672,000
+11.074.000 237,355.000 767,634.000 872,894,000
+0.5%
12.2%
29.3%
264e7.
—4
--
EALINGS in the New York money market were
largely routine this week, with rates unchanged
for all classes of accommodation. There was a fair
demand for funds, but the credit reservoir remains
full to overflowing because of the extensive previous
open market operations of the Federal Reserve, and
all requirements were met with ease. Short term
Treasury financing in the amount of $1,125,000,000
occupied the market this week. Offering was made
Wednesday of $500,000,000 13/2% certificates of
indebtedness due Sept. 15 1934, and $500,000,000
23/2% notes due March 15 1935, and books were
closed the same night. It was announced yesterday
that applications to these issues totaled $4,770,000,000.A Treasury discount bill issue of $125,000,000,
due in 91 days, was awarded Monday at an average
discount of 0.67%, which was also the average on a
similar issue sold a week earlier. Call money on the
New York Stock Exchange was 1% for all transactions of the week. In the unofficial street market
D
3 % Monday to
funds on call were available at 4
7 3% was reThursday, inclusive, while a rate of /
ported done yesterday. Time loans showed no rate
changes. Brokers' loans against stock and bond
collateral increased $21,000,000 in the week to
Wednesday night, according to the usual tabulation
of the Federal Reserve Bank of New York.
EALING in detail with call loan rates on the
D
Stock Exchange from day to day, 1% remained the ruling quotation all through the week
for both new loans and renewals. The market for
time money continues at a standstill, practically no
transactions being reported except for occasional renewals. Rates are nominal at %@1% for 60 days,
90 days and 1/2@13%% for four, five and six months.
The demand for commercial paper has been moderate
this week, though the supply of offerings has been
short. Rates are 13% for extra choice names running from four to six months and 13/2% for names
less known.
HE market for prime bankers' acceptances has
T
continued to be quiet this week, though a fair
amount of
Rates are
paper has been available.
unchanged. Quotations of the American Acceptance
Council for bills up to and including 90 days are 4%
bid and M% asked; for four months, 4
31% bid and
4% asked;for five and six months, 1% bid and 7A%
asked. The bill buying rate of the New York Reserve
Bank is
for bills running from 1 to 90 days, and
proportionately higher for longer maturities. The
Federal Reserve banks' holdings of acceptances decreased during the week from $111,939,000 to
$104,126,000. Their holdings of acceptances for
foreign correspondents show a trifling decrease from
$4,477,000 to $4,474,000. Open market rates for
acceptances are as follows:
Prime eligible bills
Prime eligible bills
SPOT DELIVE1tYa
-.180 Days- -150 Days- -120 Days
Bid.
Asked. Bid.
Asked. Bid.
Asked.
1
X
1
34
Si
X
-90 Days- -60 DollsBid. Asked. Bid. Asked.
34
X
34
34
-30 Days-Bid.
Asked.
34
34
FOR DELIVERY WITHIN THIRTY DAYS.
Eligible member banks
Eligible non-member banks
-4---
1% bid
1% bid
HERE have been no changes this week in the
T
rediscount rates of the Federal Reserve banks.
The following
rates now in
is the schedule of
effect
for the various classes of paper at the different
Reserve banks:
DISCOUNT RATES OF FEDERAL RESERVE BANKS.
Federal Reserve Bank.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Rate in
Effect on
Jan. 26.
2%
2
2%
2%
3%
3%
2M
a
3%
3%
34
234
Date
Established.
Previous
Rate.
Nov. 2 1933
Oct. 20 1933
Nov. 16 1933
Oct. 21 1933
Jan. 25 1932
Nov. 14 1931
Oct. 21 1933
June 8 1933
Sept. 12 1930
Oct. 23 1931
Jan. 28 1932
Nov. 3 1933
3
23
3
3
4
a
3
3%
4
3
4
3
TERLING exchange continues to display the
S
undertone of ease which developed last week.
The pound is
easier in terms of gold
also much
or
French francs. The premium on forward 90-day
sterling has dropped to between 23
% and 3 cents,
though less than two weeks ago the premium on 90day bills was around 63/b cents. Some weeks earlier
still the forward premium was as high as 9 cents.
The foreign exchange market is exceptionally quiet
549
Financial Chronicle
Volume 138
and the fluctuations of sterling this week have been
within a narrower range than at any time since
Great Britain abandoned the gold standard in
September 1931. The entire interest of the market
is centered upon the firmness in dollars, for which
there is very noticeable demand in London and
in the chief Continental centers. The dollar has been
exceptionally steady in the foreign centers and sterling, while easier, has been steady in Paris. The
United States has made no change in its price for
gold, which continues at $34.45 per fine ounce, which
figure was posted on Jan. 16. In consequence of the
steadiness in these quotations the open market price
for gold in London has also been relatively steady,
as compared with recent weeks, though ruling at
high prices and always at a premium over the sterlingfranc cross rate. The range for sterling this week
has been between $4.93 and $5.024, compared with
a range last week of between $4.943/ and $5.16%.
The range for cable transfers has been between
$4.933 and $5.023/2, compared with a range of be% a week ago.
tween $4.9434 and $5.163
The following tables give the London check rate
on Paris from day to day, the mean gold quotation
for the United States dollar in Paris, the London
open market gold price, and the price paid for gold
by the United States (New York Federal Reserve
Bank):
MEAN LONDON CHECK RATE ON PARIS.
Wednesday Jan. 24
79.812
Saturday Jan 20
Thursday Jan. 25
70.654
Monday Jan. 22
Jan. 26
Friday
79.674
Tuesday Jan. 23
MEAN GOLD QUOTATION
Saturday Jan. 20
Monday Jan. 22
Tuesday Jan. 23
LONDON
Saturday Jan. 20
-Monday Jan. 22
Tuesday Jan. 23
79.78
79.95
79.75
UNITED STATES DOLLAR IN PARIS.
62.6
Wednesday Jan. 24
62.9
62.9
62.4
Thursday Jan. 25
63.5
Jan. 26
62.3
Friday
OPEN MARKET GOLD PRICE
Wednesday Jan. 24
132s. 9d.
132s. 11d. Thursday Jan. 25
Jan. 26
132s. 9d. Friday
1328. 10d.
1328. id.
1328. 8d.
PRICE PAID FOR GOLD BY THE UNITED STATES
(NEW YORK FEDERAL RESERVE BANKs)
34.45
Wednesday Jan. 24
34.45
Saturday Jan. 20
34.45
Thursday Jan. 25
34.45
Monday Jan. 22
34.45
Friday
Jan. 26
34.45
Tuesday Jan. 23
•New York Federal Reserve Bank superseded the Reconstruction Fibeginning
Jan.
16.
Tuesday
nance Corporation
The market is rife with rumors which may be
expected to have a bearing on the future of foreign
exchange rates, but no official utterances have been
issued and it is evident that traders everywhere are
hesitant in taking advanced positions. However,
there can be no doubt that while they are dubious
as to the future trend of sterling, the general feeling
is one of positive bullishness with respect to the
dollar. It is expected that some measure of stabilization by the Washington administration is in
prospect. Some form of agreement is reported to
have been entered into by the American and British
authorities looking toward stabilization. These
rumors have, however, been emphatically denied
by competent opinion in London. It would seem,
nevertheless, that the market is correct in assuming
that some kind of understanding exists between the
Federal Reserve Bank of New York and the Bank of
England with a view to avoiding unnecessary disturbance in the London market by the heavy purchases of American gold and by the undoubted
efflux of American and other funds from London to
New York which has set in during the last few weeks.
Much of the heavy demand for dollars abroad results
from short covering, but there is doubtless also a
steadily increasing flow of funds from abroad to the
American security markets. This demand for dollars
offsets thelheavy purchases of gold for American
550
Financial Chronicle
Jan. 27 1934
official account in Paris. In commenting on the similarly disposed of at a premium of 7d. On Friday
secrecy of the American purchases of gold abroad, £1,580,000 bar gold was taken for an unknown desthe Wall Street Journal said on Thursday: "It is tination, the bulk believed to be for American
now believed that the Federal Reserve does not enter account, at a premium of 103/2d. On Thursday the
the local market to buy sterling, but operates chiefly Bank of England bought £83,800 bar gold. The
in London. It has been noticed that for several days, Bank of England statement • for the week ended
the dollar rate holds in London at around the pre- Jan. 24 shows an increase in gold holdings of £35,866,
vious close in New York. It is believed that the the total standing at £191,722,019, which compares
Federal Reserve Bank merely gives a check on New with £124,390,307 a year ago and with the minimum
York to those in London wishing to convert sterling of £150,000,000 recommended by the Cunliffe Cominto dollars. This is not the same as going out into mittee. The Bank's proportion of reserves to liabilithe market and actively bidding for sterling or offer- ties has fully recovered from the effect of the large
ing dollars. In effect it is merely absorbing a certain drafts customary around the year-end and stands
portion of the demand for dollars for which bank at 52.15%, which compares with 31.28% a year ago.
deposit credit in New York is given. This absorption
At the Port of New York the gold movement for
would account for the quietness in the local exchange the week ended Jan. 24, as reported by the Federal
market, it is believed. In other words, the whole Reserve Bank of New York, consisted of exports of
transaction thus far is simply in the nature of swap- $1,678,000 to Holland, and a corresponding decrease
ping bank credit here for gold in London."
in gold held earmarked for foreign account. There
A speech this week by Prime Minister MacDonald were no gold imports and there was no report of
would indicate that he considered that an adjustment gold recovered from natural deposits. In tabular
of the pound and the dollar was necessary before form the gold movement at New York for the week
there could be any real recovery in either country. ended Jan. 24, as reported by the Federal Reserve
His speech was interpreted as indicating a likelihood Bank of New York, was as follows:
of Anglo-American currency negotiation in the near GOLD MOVEMENT AT NEW YORK, JAN. 18-JAN. 24, INCL.
Exports.
oret.s.
IN
mo
pn
future. However, high British officials, including
$1,678,000 to Holland.
Chancellor of the Exchequer Neville Chamberlain,
Net Change in Gold Earmarked for Foreign Account.
Decrease, $1,678,000.
were prompt to point out that no such inferences
Exports of Gold Recovered from Natural Deposits.
justified
by
were
Mr. MacDonald's speech and that
None.
it did not represent the Cabinet view, and that the
The above figures are for the week ended WednesCabinet did not know in advance, as is customary day
evening. On Thursday and Friday there were
when important announcements are to be made, what no
imports or exports of the metal, but gold earremarks Mr. MacDonald intended to make in Leeds marked
for foreign account was reported reduced
on Tuesday. In commenting on the matter a high by
$5,162,700. There have been no reports during
British Treasury official stated: "International the
week of gold having been received at any of
tinkering with exchange in the present state of un: the Pacific
ports.
certainty concerning American finance would be
Canadian exchange is essentially unchanged from
useless. We must have a more substantial founda- last
week. However, it has ruled more consistently
tion than we have now on which to build any perman- under par and seems not at any time to have gone
ent relationship between American and British above par. On Saturday last, Montreal funds were
currencies. Otherwise we would run the risk of at a
discount of 1%. On Monday there were at
entering into an unsound agreement which might be a discount of from %% to 1%; on Tuesday,
at a
worse for both countries than the present situation."
3 %; on Wednesday, at a discount of
discount of 4
While sterling is easy and the dollar holds the
on Thursday, at a discount of from Ys% to
center of interest, everywhere there is evidence of 1%, and on Friday, at a discount of %%.
the supreme confidence reposed in London as the
Referring to day-to-day rates, sterling exchange on
dominating money center. Funds continue in
Saturday last was dull and inclined to softness.
abundance in Lombard Street and the easy rates are
Bankers' sight was $4.99%@$5.02% cable transkept from slumping lower only by the concerted fers,
2@$5.023/2. On Monday sterling was
$4.993/
efforts of the leading banks in compliance with the dull but
steady. The range was $4.99%@$5.01X
plans of the Bank of England to strengthen the for bankers' sight and $4.99%@$5.013
/è for cable
position of the discount houses. Call money against transfers.
On Tuesday the market continued dull
bills is in supply at Yi%. Two-months' bills are with
sterling steady. Bankers' sight was $5.00@
31-32% to 1%, three-and four-months' bills are 1%,
s. On Wed$5.01; cable transfers $5.003/@$5.013/
six-months' bills are 1 1-16%. Gold has been coming nesday
the market was more active; quotations more
to the London open market in unusually large irregular. The range was
$4.97M@$5.014
3 , for
amounts over the past few weeks and by far the
bankers' sight and $4.98@$5.01% for cable transgreatest quantity taken for "unknown destination" fers.
On Thursday the pound continued irregular
has been for American official account. The United with
the undertone soft. The range was $4.96@
States has supplanted the Continent as the principal $4.975,.g
for bankers' sight and $4.9634.@$4.98 for
buyer of gold on offer. On Saturday last £925,000
cable transfers. On Friday sterling was still easier,
bar gold available was taken for an unknown destina- the range
was $4.93@$4.96 for bankers' sight and
tion, the bulk believed to be for American account,
1,@$4.963( for cable transfers. Closing quo.933
at a premium of 113/2d. On Monday £980,000 was tations
4 for demand and
on Friday were $4.953
similarly disposed of at a premium of 93'd. On Tues$4.96% for cable transfers. Commercial sight bills
day £1,365,000 was taken at a premium of 9d., the finished at $4.9532; 60-day bills at
$4.9531; 90major part for American account. On Wednesday day bills
at $4.9514; documents for payment (60
£789,000 was taken chiefly for American account, at days) at $4.95, and seven-day grain
bills at
a premium of 10d. On Thursday £760,000 was Cotton and grain for payment closed at $4.95%.
$4.953/2.
Volume 138
Financial Chronicle
XCHANGE on the Continental countries continues firm in terms of the dollar, though these
units have receded fractionally from the high points
of the last few weeks. This applies to French
francs, the leading gold currency, as well as to the
minor units. Paris seems not in the least disturbed about the American gold buying plans nor
the devaluation of the dollar. Paris bankers assert
that there is not the slightest possibility of a devalued franc and point to their large gold resources
as assurance of stability. Paris reports that the
British Equalization.Fund seems not to have intervened in the market to any noticeable extent either
-this week or last. In the annual report presented
on Thursday by the Bank of France to its shareholders the Bank authorities pointed out: "The
experience of 1933 cannot but re-enforce in our eyes
the value of the doctrines to which we have always
been and are still firmly attached. We remain
more than ever convinced that the convertibility of
currency into gold is an indispensable condition of
sound economic and social discipline." Artificial
measures to which nations always tend to resort in
times of depression are described as producing
illusory or precarious improvements. It is declared that international exchange cannot revive
until the value of major currencies has been definitely
fixed. Monetary stability, it is asserted, "alone
appears suitable to guarantee the progressive evolution of human societies in order and justice." The
report concludes: "France remains faithful thereto
and rejects instinctively facile and adventurous
solutions which she feels are contrary to her fundamental interests and genius." The Bank of France
statement for the week ended Jan. 19 shows a
decrease of 93,422,039 francs in gold holdings, the
total standing at 77,160,582,755 francs, which
compares with 82,305,917,155 francs a year ago and
with 28,935,000,000 francs when the unit was
stabilized in June 1928. The Bank's ratio, however,
is at the high figure of 79.36%, compared with
79.24% a week earlier, with 77.98% a year ago and
with legal requirement of 35%.
German marks are off sharply compared with last
week. The mark is still, however, exceptionally high
in terms of the dollar. The mark is off sharply from
the French franc to points well below the theoretical
level at which it would be profitable to export gold
from Germany to France were Germany on a free
gold standard. Mark exchange is entirely nominal.
Various items relating to the German credit transfer
discussions will be found in the news columns on
other pages.
Italian lire are firm and steady. Premier Mussolini
and the Finance Minister in recent speeches before
the Italian Senate made remarks which indicate that
the Italian Government is firmly determined to maintain the lira at its present parity with gold. The
technical position of the Italian currency in the
foreign exchange market is strong and the Bank of
Italy continues to show improvement and increasing
liquidity in its statements. The return for Jan. 10
showed ratio of reserves to sight liabilities at 49.32%,
while ratio of gold to notes was 53.82%. In Milan
and in official Italian quarters the matter of stabilization of currencies is regarded as of more importance
to Great Britain and the United States than to the
rest of the world.
While exchange on Czechoslovakia is one of the
minor units in New York, it becomes of interest at
E
551
the present time because of the extremely sharp decline in the Czechoslovak crown. The decline
resulted from plans put forth by Finance Minister
Englis to grant a 30% premium to Czechoslovak
exporters while making a charge of 30% for foreign
currencies needed by importers. These plans were
announced early in the week and the currency was
offered heavily in Vienna and other Continental cities.
The plans of Dr. Englis have not thus far been
accepted. The Czechoslovak National Bank is
opposed to any form of foreign exchange control,
in the belief that such methods must lead to currency
devaluation. The Czechoslovak unit has remained
exceptionally steady during the financial crises of the
last 12 years, and this is the first time since 1922
that the crown registered a considerable decline in
international value. Despite this disturbing influence
the Government announced a few days ago that the
country would not abandon the gold standard and
that the plans of Dr. Englis were far from being
realized.
The London check rate on Paris closed on Friday
at 79.90, against 80.15 on Friday. of last week. In
New York, sight bills on the French center finished
on Friday at 6.203/2, against 6.273j on Friday of last
week; cable transfers at 6.21, against 6.273/
2, and
commercial sight bills at 6.20, against 6.27. Final
quotations for Berlin marks were 37.52 for bankers'
sight bills and 37.53 for cable transfers, in comparison wigh 37.89 and 37.90. Italian lire closed at
8.301A for bankers' sight bills and at 8.31 for cable
transfers, against 8.383.' and 8.39. Austrian schillings closed at 18.00, against 18.15; -exchange on
Czechoslovakia at 4.69, against 4.76; on Bucharest
at 0.96, against 0.96; on Poland at 17.82, against
18.02, and on Finland at 2.21, against 2.24. Greek
exchange closed at 0.89 for bankers' sight bills and
2.
at 0.893' for cable transfers, against 0.88 and 0.883/
XCHANGE on the countries neutral during
the war is prominent this week because of
sharp
drop in Spanish pesetas. The peseta has
the
been showing exceptional steadiness since the fall
of the monarchy and has been more than ever steady
and firm since the banking crisis here, as the unit
has been held in closest relationship to the French
franc or gold. Bankers are at a loss to account
for the drop in the peseta, but it is generally conceded that the selling of the currency in the past
few days has come from Spain by way of both Paris
and London. Private reports indicate that the
Spanish Government deliberately depressed the rate.
These sources point out that the exceptional firmness of the franc, or gold, against sterling has carried
the peseta to a point which Government authorities
feel to be too high in terms of sterling, and consequently a threatening handicap to Spanish external
trade. Though Holland guilders and Swiss francs
have receded from the exceptionally high levels of
a few weeks ago, they are very firm in terms of
the dollar. The present recession in these two
units must be attributed to exactly the same influences as affect sterling exchange, namely, bear
covering of dollars and transfer of American and
European funds from the Dutch and Swiss markets
to the New York security markets. The Scandinavian currencies are, of course, easier as they move
in strict sympathy with the fluctuations of the pound.
Bankers' sight on Amsterdam finished on Friday
at 63.44, against 64.35 on Friday of last week; cable
E
552
Financial Chronicle
transfers at 63.45, against 64.36, and commercial
sight bills at 63.35, against 64.26. Swiss francs
closed at 30.62 for checks and at 30.63 for cable
transfers, against 31.04 and 31.05. Copenhagen
checks finished at 22.16 and cable transfers at 22.17,
against 22.44 and 22.45. Checks on Sweden closed
at 25.58 and cable transfers at 25.59, against 25.94
and 25.95; while checks on Norway finished at 24.93
and cable transfers at 24.94, against 25.29 and 25.30.
Spanish pesetas closed at 12.66 for bankers' sight
bills and at 12.67 for cable transfers, against 13.22
and 13.23.
Jan. 27 1934
5 against 38, and
against 59; Bombay at 37%,
5
at 37%, against 38.
Calcutta
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. 20 1934 TO JAN. 28 1934, INCLUSIVE.
Country and Morulary
Noon Buying Rate for Cable Transfers ln New York.
Value in United States Money.
Unit.
XCHANGE on the South American countries is
Jan. 20 Jan. 22 Jan. 23 Jan. 24 Jan. 25 Jan. 26
showing further evidence of the relinquishment
EUROPE$
$
$
$
$
$
Austria,schilling
180750 .180750 .181250 .180700 .178562 .177425
of control by government agencies. However, Belgium,
belga
.221558 .223063 .222796 .222325 .220569 .219227
lev
.013533* .013600 .013633 .013500 .013400* .013500*
controls are not yet abandoned and rates are highly Bulgaria,
Czechoslovakia, krone .047318 .047528 .047521 .047300 .046912 .046543
Denmark, krone
.223072 .223341 .223381 .223088 .222063 .22,1454
nominal. Cables from Brazil on Saturday last England, pound
sterling
4 999642 5.005250 5.007767 5.002416 4.972142 4.935446
stated that preparations are being made for change Finland,
markka_
.022191 .022266 .022233 .022166 .022066 .021866
.062401 .062823 .062807 .062637 .062250 .061732
franc
in the currency basis. Only recently Argentina France,
Germany, reichsmark .377630 .379678 .379569 .375736 .374369 .372072
Greece, drachma
.008982 .009093 .009020 .009005 .008945 .008900
shifted from the franc to the pound sterling as its Holland,
639733 .643638 .643446 .642290 .636833 .631708
guilder
Hungary, Deng()
282666* .283100 .283100 .282633 .280333* .280933
basis for the value of the peso. Brazilian milreis Italy, lira
083412 .083877 .083800 .083660 .083198 .082716
Norway, krone
.250890 .251463 .251409 .251310 .250036 .248110
are now to be connected either to the British pound Polano,zloty
.179500 .181060 .180940 .180840 .178760 .178440
Portugal, escudo
.046047 .046139 .046089 .046080 .045997 .045752
or to the American dollar, depending on the rela- Rumania, leu
.009575 .009720 .009660 .009725 .009600 .009400
Spain, peseta
131525 .132245 .130473 .128092 .126935 .126160
.257746 .257984 .258050 .257808 .256540 .254250
tionship of these two currencies. When the pound Sweden,krona
Switzerland, franc.- .307627 .310114 .309692 .308871 .306942 .304007
dinar_ __ _ .021920 .021900 .022000 .021860 .021740 .021640
is above five dollars, the value of the milrei is to be Yugoslavia,
ASIAheld at the rate of 60 milreis to the pound. When China
Chao° (yuan) dol'r .341041 .340833 .337916 .336666 .332916 .330000
Hankow(yuan)dol'r .341041 .340833 .337916 .336666 .332916 .330000
sterling drops below five dollars the dollar will be
Sbangbal(yuan)dorr .340468 .340312 .337656 .336406 .333125 .329843
Tientsin
(yuan)dol'r .341041 .340833 .337916 .336666 .332916 .330000
ratio
of 12 milreis to the dollar.
employed, at the
.377187 .376562 .374375 .373125 .370312 .366562
Hongkong, dollar
India. rupee
.376690 .376300 .375950 .376000 .374150 .372800
hitherto
milrei
been
has
pegged
The
by the Brazilian Japan. yen
298187 .298900 .297500 .297437 .294500 .292600
(S.S.) dol'r_ .585000 .583750 .583750 .583437 .580625 .576250
exchange control to sterling at the ratio of 60 to 1. Singapore
AUSTRALASIA3.982500 3.989375 3.989583 3.983750 3,967916 3.929583
pound
The Uruguayan Bank of the Republic announced the Australia,
New Zealand, pound_ 3.992500 3.999683 4.000000 3.993333 3.077201 3.939583
AFRICAabolition of exchange control effective Feb. 1 except South Africa, pound 4.942187 4.949843 .848750 4.945625 4.912291 4.880625
NORTH AMER.for the sale of export drafts, which will remain subject Canada, dollar
.990000 .989791 .991406 .992500 .990104 .988593
Cuba, peso
999550 .999550 .999800 .999550 .999550 .999550
to government control. Exchange bootlegging is Newfoundland,
Mexico. Peso (silver). .277160 .277220 .277900 .277320 .277160 .277320
dollar .987375 .987250 .989000 .990000 .987625 .986625
SOUTH AMER.abolished by permission to the banks and foreign Argentina,
.333366* .333566* .333666* .333566* .331533* .329366*
DM
Brazil, milrela
.085287* .084968* .085162* .084862* .084870* .084190*
exchange houses to buy and sell drafts, checks, and Chile,
094750* .094500* .094500* .094500* .094500* .094350*
peso
.760833* .765000* .767033* .764000* .756666* .756166*
Uruguay. peso
currencies of any country at prices regulated by Colombia,
.675700* .704200* .714300* .709200* .694500* .696900•
peso
supply and demand instead of those fixed by the
•Nominal rates; firm rates not available.
government. Uruguay thus follows Argentina in
admitting inability to control exchange operations.
HE following table indicates the amount of gold
The "unofficial" New York rate for Argentine pesos
bullion in the principal European banks as of
continues to be much lower than the official rate. Jan. 25 1934, together with comparisons as of the
The "unofficial" rate ranged this week between corresponding dates in the previous four years:
25.40 and 27.72.
1932.
1931.
1933.
1930.
Argentine paper pesos closed on Friday nominally Banks of- 1934.
£
£
£
£
£
121,349.833 140,141,236 150,428,168
at 333.i for bankers' sight bills, against 3334 on England... 191,722,019 124,390,307 565,513,561
440,350,732 342,645.367
France a__. 617,284,662 658,447,337
42,475,350 101,106,400 106,833,60 C
38,673.000
17,039,150
Germanyb Friday of last week; cable transfers at 3332, against Spain__
89,911,000
90.345.000
90,458,000
97,599.000 102,644,000
__ _
60.854,000
63,095,000
57,297,000
76,666,000
56,133,000
3332. Brazilian milreis are nominally quoted 834 Italy
73.256,000
86,050,000
76,621,000
35,508.000
Netherlands
37,288,000
72,868,000
74,381,000
39,241,000
78,444,000
Nat. Belem
33.586,000
for bankers' sight bills and 83/b for cable transfers, Switzerland
61,042,000
88,964,000
25,752,000
67,518,000
23,222,000
11,435,000
11,443,000
14,515,000
13,376,000
_
13,636.000
against 83/2 and 84. Chilean exchange is nominally Sweden
8.015,000
7,397,000
9,558,000
7,398.000
Denmark._
9,578,000
8,015,000
6,559,000
6,574,000
8.134,000
Norway
3
8,146,000
quoted 9%, against 99. Peru is nominal at 22.95,
Total week_ 1,244,239.831 1,251,200,644 1,113,278,744 968,063,368 884.140,035
against 23.55.
Prey. week. 1,245.214,191 1,247,213,728 1,106,775,002 964.147,342 883,209,821
E
T
••••.-4--•
XCHANGE on the Far Eastern countries presents no new features of importance from
those of recent weeks. The Chinese units are
generally easier, as there has been no noticeable
improvement in world silver prices. As frequently
pointed out, buying or selling exchange on China is
equivalent to a transaction in silver. Japanese yen
are inclined to ease, due doubtless to the fact that
the exchange control in Tokio is determined that
the rate should bear some relationship to the lower
pound sterling.
Closing quotations for yen checks yesterday were
29.40, against 30.15 on Friday of last week. Hong
Kong closed at 373/s®37 3-16, against 383/8@38 7-16;
Shanghai at 33 5-16@33%, against 34%@34%;
2,
8, against 5034; Singapore at 583/
Manila at 503/
E
a These are the gold holdings of the Bank of France as reported In the new form
of statement. b Gold holdings of the Bank of Germany are exclusive of gold held
abroad, the amount of which the present year IS £1.977,300.
A New Political Attitude in Japan.
The speech which Foreign Minister Hirota delivered on Tuesday in the Japanese Diet is of special
interest because of the more conciliatory tone in
which Japanese foreign policy, particularly toward
Europe and the United States, was discussed.
Added significance attached to the speech because
of the announcement on Monday of the resignation
of General Araki, Minister of War. General Araki
had been for some time the recognized spokesman
for an army group which, reinforced by a carefully
cultivated military sentiment in the country and
deriving some support from naval circles, gave a
peculiarly aggressive tone to Japanese foreign policy
Volume 138
Financial Chronicle
and aroused much apprehension abroad by its implied expectation of war. The ostensible reason for
the resignation was General Araki's ill health and
his consequent inability to attend the sessions of the
Diet. Of the fact of ill health there appears to be
no doubt, but there is reason for suspecting that a
slow but obvious swing of public opinion away from
the demands of the militarists had some bearing
upon his decision. With the leader of the militarists
no longer in office, a declaration of foreign policy
couched in terms of conciliation and peace may well
have important meaning.
With the exception of the references to China and
Russia, Mr. Hirota's speech was cast largely in
general terms, but the indication of Japan's position
was nevertheless clear. Referring to the notice
which Japan had given of withdrawal from the
League of Nations because the Manchurian incident
and questions regarding Manchukuo "showed that
there was no agreement between Japan and the
League on fundamental principles of preserving the
peace in Eastern Asia," Mr. Hirota quoted from the
Imperial rescript issued at the time, in which the
Emperor declared that "by quitting the League and
embarking on a course of its own, our Empire does
not mean that it will stand aloof in the extreme
Orient, nor that it will isolate itself thereby from
the fraternity of nations." "Personally speaking,"
Mr. Hirota said,"I am determined to use every ounce
of my energy to carry out our National policy by
diplomatic means in the interest of world peace."
The approaching establishment of a monarchy in
Manchukuo was "a matter of congratulation, not
for Manchukuo alone, but for the peace of the Orient
and the peace of the world," and it behooved the
Government and the Japanese people "to exert their
efforts unremittingly in assisting the healthy growth
of the new State."
Turning to China, Mr. Hirota said that while
Japan "has serious responsibilities for the maintenance of peace in Eastern Asia and has a firm resolve
in that regard," what was more essential was the
stabilization of China. In that matter the hopes
of the Japanese Government had been disappointed.
Recent reports of a purpose on the part of the
Chinese Government to "take steps looking toward
rectification of Chino-Japanese relations" had not
been followed by any "concrete evidence" to "confirm the truth of the report." If China should give
"tangible signs of sincerity" Japan "would be glad
to reciprocate and meet her more than half way in a
spirit of good-will," but in the meantime Japan "expects China to see to it that nothing will happen
that may bring chaos" in North China, where at the
moment, under the control exercised by the Peiping
political committee, there is comparative quiet.
"We are watching," however, "not without grave
.misgivings, the activities of the Communist party
and the increasing rampancy of 'Red' armies in
China."
Regarding Russia, Mr. Hirota spoke more
strongly. "It is most surprising and regrettable,"
he said, that the Soviet Union, following some years
of mutual understanding,"should now take to broadcasting at home and abroad, through the press and
other channels, unwarranted criticisms directed
against Japan, and circulate exaggerated stories
about aggravations of this or that situation, evidently for political and diplomatic purposes which
such rumors are calculated to serve." He denied
553
that Japan was setting up any new military establishments on the Manchukuo-Russian frontiers, and
expressed the earnest hope that negotiations regarding the North Manchurian Railway, which have been
for some time suspended, would soon be resumed.
A favorable turn in the negotiations regarding the
Chinese Eastern Railway had already been reported
on Jan. 16.
Between Japan and the United States, on the
other hand, "it may be definitely stated," Mr. Hirota declared, that "there exists no question that is
intrinsically difficult of solution." "If only America
will clearly perceive the actual condition of the
Orient and realize Japan's role as a stabilizing force
in Eastern Asia, whatever emotional tension may
yet linger between the two peoples is bound to disappear." The "traditional amity" between Japan
and Great Britain "remains unshaken," and the conclusion of negotiations with India is "a source of
gratification on both sides." "A survey of the world
as a whole reveals a sorry situation in which economic disorder, political unrest and confusion and
conflict of ideas threaten to destroy international
equilibrium at any moment," and international trade
barriers were multiplying, but "I consider," Mr.
Hirota told the Diet, "that no insuperable difficulties need be anticipated in settling any question if
the nations manifest their sincerity and with true
comprehension of one another's position meet in a
genuine and generous spirit of universal brotherhood."
Mr.Hirota's speech,important enough to be transmitted in full by the Associated Press, is to be read
in the light of the circumstances in which it was
delivered. There is no difficulty in seeing in it the
assumption of Japan's dominating position in the
Far East, and a note of regret that the position
should not be recognized by China and Russia.
Neither on the League nor on Manchukuo does the
speech show any intention of yielding, and the reference to Russia can hardly be called conciliatory.
What is lacking, however, is the aggressive tone and
thinly veiled intimations of force which have lately
characterized semi-official Japanese declarations.
It is as a Foreign Minister faced with many difficulties, rather than as a spokesman for a Government whose army and navy are ready, that Mr. Hirota addressed the Diet, and his tmphasis, however
general, was upon peace rather than the possibility
of war. The discussions in the Diet on Wednesday,
as far as can be gathered from brief press reports,
indicate that Mr. Hirota's position found important
support. There were some sharp attacks upon the
army for interfering with politics, a demand for
suppression of the "scare" stories which have been
appearing in Japanese papers and magazines, and
denials that Japan faced any crisis which called for
extraordinary war preparations. In a speech which
was broadcast on Thursday Mr. Debuchi, lately Ambassador to the United States, was reported by the
New York "Times" as paying "tribute to American
friendship" and making "a powerful appeal for confidence in America's pacific intentions."
Speculation has naturally been rife regarding the
reasons for Mr. Hirota's change of attitude. A
Washington dispatch of Wednesday to the New
York "Times"represented War Department officials
as believing that American recognition of Russia,
together with the proposed building up of the American navy to the limits set by the London naval
554
Financial Chronicle
treaty, had had a restraining effect upon both Russia
and Japan. It would, be difficult for Russia to
force an issue just now with Japan without first
taking account of the views of President Roosevelt,
which would certainly be averse to war, and Japan
could hardly fail to recognize a similar restraint in
dealing with Russia. The expiration of the HawesCutting Act providing for Philippine independence,
and the strong opposition to independence which
appears to have developed in the islands, have undoubtedly checked any imperialistic ambitions in
the direction of the Philippines that the Japan expansionists may have entertained. The friendly
reference to Great Britain in Mr. Hirota's speech
may well have been intended to offset the concern
aroused by the conference of British naval commanders at Singapore which began on Tuesday, and
whose proceedings have been shrouded in secrecy.
Work on the Singapore naval base was stopped for
five years by the London naval conference of 1930,
and there has been much difference of opinion in
England as to whether it should be resumed. Singapore remains, however, the most important British
naval base in the Pacific, and the conference which
is being held is naturally connected in thought with
the recent aggressive tone of Japanese declarations.
The most important influence that has worked in
Japan, however, has been that of naval power. The
London treaty does not expire until the end of 1936,
but a conference of the signatory Powers is to be
held in 1935 to consider the future of the agreement.
Quite aside from its connection with other controversies, such as those with China and Russia, the
Japanese Government has made no secret of its dissatisfaction with the inferior naval strength allotted
to it by the treaty, and has been unofficially reported
as disposed to insist upon parity in all respects with
Great Britain and the United States. The American
program of naval building has affected Japan in two
contradictory ways. The purpose of the United
States to build up to the treaty limit has been used
as an argument for Japanese naval expansion, and
at the same time as an argument against entering a
race in which Japan could hardly expect to gain its
goal. It is the latter argument which at the moment
seems to have gained the upper hand, aided by the
approaching withdrawal of the bulk of the American navy from the Pacific to the Atlantic. With
the principal strength of the American navy concentrated in the Atlantic, it is not so easy as it was to
represent either the present fleet or a greater one
as a menace to Japan.
Diplomatic generalities, however well intentioned,
are not a substitute for actual performance, and the
situation in the Far East remains a dangerous one.
The strongest partisans of China would find it hard
to show wherein recent events in that country point
to increased political stability, and the Russo-Japanese controversies still hang in balance. Moscow
journals were reported yesterday as denying stoutly
that Russian policy toward Japan had recently undergone any change. Reports of considerable investments of French capital in Manchukuo have
been denied, but politically France and Japan
seem to have drawn nearer together. The problem of the Powers appears to be to recognize
the predominant role which Japan plays, and
will probably continue to play, in the Far East, and
at the same time to do all that can be done to
insure that the role shall be one of peace and not of
Jan. 27 1934
aggression. With that object in mind the declarations of Mr. Hirota have a welcome if not a conclusive significance. It is improbable that either the
United States or Great Britain will formally consent to naval parity for Japan, and the Stimson
doctrine stands in the way of recognition for Manchukuo. At each of those points some concessions
will evidently have to be made. They will be more
easily made if Mr. Hirota succeeds in restoring cordial relations with Russia, and if his pacific speech
calms the Japanese agitators and makes the popular
or unofficial proclamations of Japanese intentions
less bellicose in their tone.
When Gold Was a Mere Toy.
The efforts of the Federal Government to corral
most of the gold in the country into the Treasury
are not without a touch of both humor and pathos.
An aged citizen recalling the time when he was a
boy before the Civil War,said: "One of our family
evening pastimes, when we were gathered in the
sitting room, living rooms being unknown in those
simple days, was for my father to delve into the
pockets of his black broadcloth pantaloons and extract a number of twenty dollar gold pieces, double
eagles, and to send them spinning 'round and 'round
on a marble topped stand for the amusement of myself and sister. No one has done that for many
years and judging from present conditions that form
of childish amusement will never be resumed."
A grandmother relates that when she was about
to leave home on her honeymoon, her mother gave
her a five dollar gold piece, asking the bride to take
care of it until she would actually need to spend
it. "I have the keepsake yet," she remarked,"and I
am wondering whether Uncle Sam really wants that
five dollar gold piece worse than I do and if I give
it up whether my good luck will fail me after all these
years. I am tempted to pass it on to my little granddaughter with the hope that when she goes on her
honeymoon our beloved country will not be so topsyturvey."
There are similar instances where much larger
amounts are involved and of course of greater interest to those who have charge of the National purse
strings, but concerning which the sentiment is increasingly larger and where also the possibility of
the yellow metal becoming useless as money creates
deeper anxiety.
Old watch fobs, trinkets, scarf pins and dollar
gold coins found their way speedily to precious
metal dealers. One man who had long prized a
keepsake found that he had been hoarding a counterfeit gold dollar.
In some cities the rush of excited citizens to deposit their gold hoardings was so great that banking hours were extended and policemen had to be
called to keep the crowd in order and to protect
them from bandits.
Numismatists reaped a harvest by collecting $3
and one dollar gold coins, which have not been coined
by the mints for many years. The Government does
not seek coins of such denominations which are not
current and of which only a few are outstanding.
A director of a bank in a country town was in a
large city and while conversing with a city banker
the subject of gold hoarding came up. The countryman stated that he had a few hundred gold certificates. "Better turn them in at once" was the ad-
Financial Chronicle
Volume 138
555
vice, as the time first fixed for action was about to which for the moment is being aided by the institutional
demand, while there is as yet no immediate threat of a,
expire.
sharp
advance of money rates.
The visitor called up the President of the country
The lower grade bond market was strong this week.
bank and told him over the phone that he had $3,000 Previous gains were maintained
and extended, but progress
of gold certificates in his safe deposit box which he was not as rapid as during last week. This group is rewanted to turn in. "You know the bank closes at flecting wide advances in the stock market. There are
3 o'clock," the President stated, "but you can't get prospects for a good increase in business activity and earnup here by that time. I will hold the bank open ings, due both to the usual seasonal influences over the
next two or three months and to the enormous expenditures
until 5 P. M., and by that time you can get back and of the Federal Government.
make the deposit in exchange for cash or credit."
High grade railroad bonds have been firm to strong.
The director acted promptly and slept comfortably Norfolk & Western 4s, 1996, advanced from 100 to 101,
and Pennsylvania 43%s, 1960, from 105 to 105%. In
that night.
While a Scotchman was in a dentist's chair and the lower classifications movements were more mixed.
New York Central 5s, 2013, declined from 76 to 73, and
the dentist was about to place a gold crown in posi- Chicago Milwaukee
St. Paul & Pacific 5s, 1975, from 493%
tion, the crown slipped out of the dentist's hand and to 483%. However, advances outnumbered declines; Great
was quickly swallowed by the patient. When the Northern 7s, 1936, from 90 to 91, New York New Haven
man related the incident upon returning home, his & Hartford 43/2s, 1967, from 673% to 68, and Southern
wife remarked: "Certainly you swallowed the gold, Pacific 43%s, 1981, from 643% to 65. December railroad
earnings proved somewhat more favorable than generally
what else would a Scotchman do if he wanted to get expected; January carloadings continued to record gains.
ahead of F. D. R. and the NRA?"
Utility bonds showed more irregularity during the present
Gold mining will continue and there still will be week than in recent periods, although second grade issues
work for the U. S. Mints which coin the precious continued to evince a tendency to love upward. High
metal into money for foreign countries, even should grades as a class did not show any pronounced trend. Lower
grades generally were up, but the progress of previous weeks
demand for American coins be not so great as in was lacking except in isolated instances. Louisville Gas
&
former years.
Electric 5s, 1952 were up 23% points to 97 since Friday a
week ago, Western United Gas & Electric 53%s, 1955 advanced 13
4 points to 80, Carolina Power & Light 5s, 1956
The Course of the Bond Market.
were up 43
4 to 693
4, and Illinois Power & Light 5s, 1956
The technical position of the high grade bond market gained % points to 593
4for the week.
was strengthened this week by the Government's success
Further gains were recorded in industrial bond prices,
in its new note offerings aggregating a billion dollars which though the steady advance received a setback in the latter
were largely over-subscribed. Although high grade bonds part of the week. Heavy industry issues continued in
are now selling on about a 4.30% yield basis, which is demand, examples of advances for the week being: American
around the lowest levels such issues have reached in the Rolling Mill 5s, 1938, up 1% to 1043%, General Steel Castings
53%s, 1949, up %
4, and Inland Steel 43%s, 1978, up
3 to 803
past decade or so, the Government's financial policy at 23% to 893%. Oils continued steady to fractionally higher.
the present moment is proceeding along less unorthodox In the tire and rubber group Goodyear 5s, 1957, are off
lines and tends to support present high prices for gilt edged to 913
4,while Goodrich 6s, 1945 gained 34 to 793%. Among
other advances have been one of 43% to 703% by McKesson
bonds.
Long term United States Government bond prices re- & Robbins 53%s, 1950, and a gain of 2 by Warner Bros.
Pictures 6s, 1939 to 51.
mained about the same as last week, and short term money
The general averages for foreign bonds continued firm this
rates were unchanged. At the same time, however, it is week, with slightly mixed trends in individual national
evident from the latest Government financing that the cost groups. Further advances took place in most South Ameriof short term borrowing by the Treasury is tending gradually can issues, particularly in Argentine, Brazilian and Chilean
to rise. When it is considered that this financing repre- bonds. German issues lost ground on Friday, Japanese
sents only the first slice of the $6,000,000,000 program bonds were fractionally higher, except direct Governmental
to be consummated by June 30, it can be seen that the issues, which declined somewhat, while Norwegian, Finnish
Government bond market, or the short term money market, and Danish bonds were steady.
have not as yet really felt the impact of this program.
Moody's computed bond prices and bond yield averages
The same applies to the high grade corporate bond market, are given in the tables below.
MOODY'S BOND PRICES.*
MOODY'S BOND YIELD AVERAGES.
(Based on Average Yields.)
100.41
25_ 100.41
24-- 100.40
23_ 100.29
22__ 100.40
20-- 100.35
• 19_ 100.36
18- 100.38
17__ 100.39
18- 100.39
15-- 100.09
13._ 99.69
12-- 99.71
11._ 99.42
10-- 99.06
9__ 99.49
8_ 99.88
6_ 100.09
5._ 100.42
4_ 100.59
3__ 100.58
2__ 100.32
High 1933 103.82
Low 1933 98.20
High 1932 103.17
Low 1932 89.27
Yr. AgoJan.26'33 103.66
2 Yrs.Ago
Jan.120--
Tan 26'32 91.12
120 Domestics by Ratings.*
Aaa.
91.53
91.39
91.25
90.83
90.83
90.83
90.55
90.00
89.45
89.31
88.77
87.83
87.69
86.91
85.74
85.23
84.97
84.85
84.85
84.85
85.10
85.10
92.39
74.15
82.62
107.87
107.85
107.85
107.67
107.87
107.67
107.67
107.31
106.96
108.78
106.60
106.60
106.25
105.89
105.72
105.54
105.37
105.37
105.37
105.54
105.54
105.37
108.03
97.47
103.99
57.57 85.61
83.23 105.72
74.05
9311
Aa.
(Based on Industrial Closing Prices.)
120 Domestic
by Groups.
A.
Baa.
RR.
98.41
98.25
98.25
97.78
97.78
97.62
97.16
97.16
96.70
96.23
95.78
95.63
95.48
94.88
94.29
93.99
93.85
93.40
93.26
93.11
93.55
93.55
100.33
82.99
89.72
71.38
92.53
89.31
89.17
88.77
88.10
88.10
88.23
87.96
87.43
88.91
88.77
88.51
85.10
84.85
84.35
83.11
82.50
82.02
82.02
82.02
81.90
81.78
81.90
89.31
71.87
74.55
54.43
81.18
75.50
75.19
74.98
74.67
74.88
74.67
74.38
73.45
72.95
73.05
71.96
70.33
70.52
69.31
67.42
66.64
86.38
66.47
66.55
66.64
66.90
67.07
77.66
53.16
67.86
37.94
62.93
92.68
92.82
92.53
92.10
92.10
91.81
91.39
90.83
90.27
89.86
89.17
88.36
88.36
87.56
86.64
85.99
85.61
85.61
85.74
85.87
88.25
86.12
93.26
69.59
78.99
47.58
76.14
62.26
71.67
57.17
72.06
P. U. Indus.
.4 0 00.40.4.4.4.4.4.4.4-.3.400WM000000WWW
..p-.0wwwwww
0 -4 0-40004.074000,
0:40000064.;4004.;.8ite4W44,4
.4
oa 0 ..000-40a0000
.0.4
-4
WWI&
U.S.
AU
1934
Gov.
120
Daily
Bonds. DomesAverages
**
tic.
98.88
98.88
99.04
99.04
99.04
98.88
98.73
98.57
98.25
98.09
98.09
97.94
98.09
98.25
97.78
97.62
97.31
97.16
97.00
96.54
96.54
96.54
99.04
78.44
85.61
62.09
86.51
71.29
1934
Daily
AU
120
120 Domestic., by Rat nes.
DomesAverages. tic.
Aaa.
Baa.
tt
120 Domestics
30
by Groups.
ForP. U. Indus. eigns.
Aa.
A.
5.47 6.62 5.23
5.48 6.65 5.22
5.51 6.67 5.24
5.56 6.70 5.27
5.56 6.68 5.27
5.55
6.70 5.29
5.57 6.73 5.32
5.61 6.82 5.36
5.65 6.87 5.40
5.66 6.86 5.43
5.68 6.97 5.48
5.79 7.14 5.54
5.81 7.12 5.54
5.83 7.25 5.60
5.95
7.46
5.67
6.00 7.55 5.72
6.04 7.58 5.75
6.04 7.57 5.75
6.04 7.56 5.74
6.05 7.5.5 5.73
8.06 7.52 5.70
6.05 7.50 5.71
5.47
5.19
6.42
6.98 9.44 7.22
6.34 7.41 6.30
9.23 12.96 10.49
6.11 8.00 6.56
5.88
5.92
5.95
6.01
6.00
5.98
6.01
6.06
6.10
6.10
6.18
6.33
6.35
6.48
6.65
6.72
6.73
6.74
6.74
6.72
6.71
6.68
5.47
7.17
5.59
7.66
5.59
4.82 7.97
4.82 7.96
4.81 7.97
4.81 8.02
4.81 8.02
4.82 8.06
4.83 8.05
4.84 8.11
4.86 8.14
4.87 8.22
4.87 8.25
4.88 8.33
4.87 8.33
4.86 8.32
8.39
4.89
4.90 8.46
4.92 8.52
4.93 8.56
4.94 8.52
4.97 8.61
4.97 8.82
4.97 8.56
4.81
8.131
6.35 11.14
5.75 9.8E
8.11 15.81
5.68 9.81
700
596
70.1
Jan. 26-25-24-23__
22-20-19-18_
17__
M._
15._
13-12__
11_
10_
9_
8._
6._
5-4-3-2-Low 1933
High 1933
Low 1932
High 1932
Yr. AgoJan.26 33
2 Yrs.Ago
5.31
5.32
5.33
5.36
5.36
5.36
5.38
5.42
5.46
5.47
5.51
5.58
5.59
4.30
4.29
4.29
4.30
4.30
4.30
4.30
4.32
4.34
4.35
4.36
4.36
4.38
5.65
5.74
5.78
5.80
5.81
5.81
5.81
5.79
5.79
5.25
6.75
5.90
8.74
5.94
4.40
4.41
4.42
4.43
4.43
4.43
4.42
4.42
4.43
4.28
4.91
4.51
5.75
4.41
4.85
4.86
4.86
4.89
4.89
4.90
4.93
4.93
4.96
4.99
5.02
5.03
5.04
5.08
5.12
5.14
5.15
5.18
5.19
5.20
5.17
5.17
4.73
5.96
5.44
7.03
5.24
Jan 25'22
a711
R on
502
660
RR.
506
l3 1l
prices are computed from average yield on the haste of one "ideal" bond
coupon, maturing In 31 years) and do not purport to show either
the average level or the average movement of actual price quotations. They merely serve to il 45(%
ustrate in a more comprehensive way the relative levels and the relative
movement of yield aversges,the latter being the truer picture of the bond market. For Moody's index of bond prices by months back to 1928, see the "Chronicle" of Feb.
6 1932. Palle 907. **Average price of 8 long-term Treasury Issues. tt Average of 30 foreign bonds but adjusted to a comparable basis with previous averages of 40 foreign bonds.
Notes.-5 These
Financial Chronicle
556
Jan. 27 1934
The Decline in Building Construction Accentuated in 1933
The building industry is the one great industry
which enjoyed no recovery during 1933, though
probably greater efforts were put forward to bring
about a revival in that line of activity than in any
other. As a matter of fact, it may be affirmed that
under the further decline of 1933 new building work
came almost to a standstill. And here we have an
illustration which points to the distinction between
the production of so-called capital or durable goods
and the production of consumer goods—that is, goods
that are virtually consumed as fast as they are produced. Colonel Leonard P. Ayres of the Cleveland
Trust Co. in his investigations found that during the
long period of depression through which the country
has passed the consumption of consumer goods
showed a relatively.small decline, while the consumption of capital goods, such as buildings, locomotives,
machinery, and the like, suffered enormous contraction. And in the case of the building industry
the contraction finds confirmation unquestionably
to a greater degree than elsewhere. The compilations we present to-day with reference to the building
permits in the leading cities of the United States
furnish justification and confirmation of the statement.
Very few persons have any conception of the extent
to which the contraction in new building work has
gone and still fewer persons have any idea of the
ramifications of a falling off such as the building
industry has suffered in recent years. Iron and
steel, lumber, cement, paint and a thousand other
things enter into new building work, and the demand
for all these various things falls off and finally drops
to the vanishing point as new building work drops
lower and still lower and in many instances ceases
completely.
The matter is of great and grave importance,
inasmuch as it must be assumed that the drop in
new building work, almost to the point of extinction,
has played an important part in the general industrial
depression from which we are now so painfully
trying to emerge. In considering the extent of the
collapse it becomes apparent, too, that Government
relief work, no matter how extensive, will never
suffice to bring a return of the conditions when
under unexcelled prosperity new building work was
carried on with such unrestrained freedom and on
such an unexampled scale. In the heyday of the
country's prosperity, building was unquestionably
overdone, and that is true in the case not alone of
our large cities—New York City being a conspicuous
example as new office buildings, apartment houses
and other classes of structures were put up greatly
in advance of needs in normal business conditions—
but in many other parts of the country. Where that
has been the case time alone can prove a corrective.
But in the more recent years of the depression
another factor has come to check new building-work
and to reduce it to still lower depths. We refer to
the difficulty in floating new securities and thus
providing the capital with which to carry on new
work. During 1933, of course, the new Federal
Securities Act came in during the last half of the year
to put an embargo on the enlisting of private capital
for the purpose, but long before that it had become
increasingly difficult to find a ready market for
securities as a means of providing the required
capital. Existing securities became more and more
discredited as they suffered enormous depreciation
in market values, and as revenues and profits kept
shrinking in the industrial world no less than in the
railroad transportation field.
These preliminary observations seem essential in
order that there may be a proper realization of the
part played by the dwindling of new building work in
intensifying general business depression, and the
statistics we bring together for showing the collapse
of the building industry are useful in indicating how
complete the collapse has been and how far reaching
the effects must have been. Our tabulations cover
the building permits issued in 354 cities and these
show a contemplated expenditure for the calendar
year 1933 of $362,954,062, as against $420,526,396
for the calendar year 1932. Where the comparison is
thus confined to a single two-year period, it conveys
no idea of the extent of the breakdown, since in comparing with 1932 we are comparing with one of the
very worst years in the building industry—a year
when building had already fallen to inordinately low
depths. Carrying the comparisons further back,
however, year by year we get the unfolding of a record
in that line which has no parallel in the country's
history and which is staggering by reason of its
magnitude. In 1931 the amount involved in the
building permits for the 354 cities was $1,220,779,503;
in 1930 it was $1,776,623,053; in 1929 it was $3,096,839,460; in 1928, $3,500,730,450; in 1927; $3,651,036,270; in 1926, 4,121,464,853, and in 1925, $4,393,364,166.
It is this drop from $4,393,364,166 in 1925 to
$362,954,062 in 1933 that marks the extent of the
collapse which is the more noteworthy as it continued
without interruption during the whole period of these
years, and, by parity of reasoning, it indicates how
far it will be necessary to go if we hope to get back
to the good old times of the past, but which are not
likely to recur very soon and are not likely to recur
at all until normal condition in the industrial world
are once more restored and Government relief agencies are able to retire from the field and private
enterprise again assumes full sway. The following
table covers the record of building permits back to
1906. The table shows New York City separate
from the rest of the country and it should not escape
notice that the building permits issued here in_New
York covering all the different boroughs,involved a
contemplated outlay of only $78,355,247 in 1933 and
$77,902,719 in 1932, whereas in the whole of the five
Financial Chronicle
Volume 138
year period from 1925 to 1929 the total each year
was close to a billion dollars and in two of the years
actually ran above a billion dollars each year.
COMPARISONS OF YEARLY BUILDING PERMITS FOR NEW YORK
DISTINCT FROM REST OF COUNTRY.
Calendar
Year.
1933
1932
1931
1930
1929
1928
1927
1926
1925
1924
1923
1922
1921
1920
1919
1918
1917
1916
1915
1914
1913
1912
1911
la10
1809
1908
1907
1908
No. of
COOS.
New York.
354
354
354
354
354
354
354
354
354
354
310
308
307
306
297
287
277
273
284
284
273
235
235
223
209
206
200
163
378,355,247
77.902,719
349.282,609
407.067,669
960,091,743
937,647,139
880,746,413
1,060,051,394
1,008,571,842
846,505,817
785,557,945
638.569,809
476,827,194
290,828,942
261.500,189
56,500,495
103,068,798
221,293.974
172,945,720
138,115,266
162,942,285
228,601.308
200,325,288
213,848,617
273,108.030
174,757,619
197.618,715
241.064.458
Per Centof
Whole. Outside CUtes.
21.59
18.53
28.62
22.91
31.01
26.78
24.14
25.73
22.97
22.88
22.77
22.74
25.50
17.79
17.26
11.14
12.54
19.56
18.56
15.49
16.61
22.25
20.81
21.88
26.94
23.94
24.63
29.93
3284,598,815
342,623.677
871,496.894
1,369.555,384
2,136,747,717
2.563,093,311
2,770.289,853
3,061,913,459
3,384,792,814
2,855,629,518
2,663.907,795
2.169,314,914
1,393,407,781
1,343.549,455
1,253,554,036
450.859.008
718,970,094
910,278,381
758,991,580
753,730.258
818,029,278
798,913,875
762.174.380
763.308,183
740,677.942
555,324.252
604,671,736
564.486.823
Total AS.
3362,954,062
420,526.396
1,220,779,503
1,776,623.053
3.096.839.560
3,500.730.450
3,651.036,270
4,121,464,853
4,393,364.166
3,702.135.335
3,449.465.740
2,807,884,733
1,869.694,975
1,634,378,397
1,515,054,225
507,359,503
822,038,892
1,131.572.355
931,937.300
891,845,524
980,971,563
1,027,515,183
962,499,668
977,216,800
1.013,785,972
730,081.871
802.290,451
805.551.281
It deserves to be noted, as we have done on previous occasions, that there are two sets of records
which are commonly used to measure the course of
building work, namely, (1) the statistics regarding
engineering and construction work, and (2) the statistics which deal with the plans filed with the local
building departments. Our compilations relate entirely to the latter, that is, to the plans filed with
the local building authorities. The record of the
building permits, which form the basis of our tabulations, has been one of continuous decline extending
back over the whole of the last eight years, that is,
covering all the years since 1925, in which latter
year the peak total was reached—while the amount
involved in engineering and construction contracts
continued to expand until 1929, when a setback
occurred and has since been followed in 1930, 1931,
1932 and 1933 by a breakdown of huge dimensions.
In the case of these engineering and construction contracts, there was, prior to 1929, only a single exception to the upward movement, namely,the year 1927,
in which year there was what might be called a mere
temporary halt or lull, the total for that year recording some decrease, but not a decrease of any great
consequence.
On the other hand, in the case of our own tabulations of building permits, the long-continued preceding decline, it seems to us, is to be regarded
as quite as significant as the tremendous further
shrinkage in 1930, 1931, 1932 and 1933. If the 1930
1931, 1932 and 1933, yearly shrinkage of $2,733,885,398 was the result of the general trade collapse,
as it unquestionably was, the falling off in the four
years preceding in the aggregate sum of $1,296,524,706 occurred without interrupting general trade
activity, which during the whole of that time continued steadily on the ascendant.
To repeat again, our figures of new building work
relate entirely to the plans filed with the local
authorities, on which permits are issued in accordance with the varying requirements of State and
local laws for the prosecution of the work. They do
not include engineering projects, nor do they, as a
rule, include public works construction such as
sewers, subways and highway work in the nature
557
of bridges, grade crossing elimination, and the like,
and often do not include educational buildings,
social and recreational structures, and public hospitals. This will readily explain why records of
contracts awarded, such as compiled by the F. W.
Dodge Corp., invariably arrive at much larger totals
than those represented by the building plans or permits which form the basis of our own compilations.
It will also explain why the yearly comparisons, in
the case of these other records, did not until 1929
reveal the downward trend disclosed by our own
tabulations. Engineering projects involving, say,
public utilities like light, power and similar enterprises, are dependent upon financial conditions and
financial developments, and these, as every one cognizant of the course of financial affairs in recent
years knows, were, until the period of the great breakdown in the autumn of 1929, all in the direction of
continued expansion. The extended tabulations regarding the new capital flotations which we presented in our issue of Jan. 13 furnish incontrovertible
proof on that point. Taking simply the new capital
issues by domestic corporate undertakings and confining ourselves to those representing strictly new
capital by omitting the portions meant for refunding, we find that the amount provided ran up from
$3,604,503,667 in the calendar year 1925 to $8,002,063,991 in the calendar year 1929, with a drop back
to $4,483,081,776 in the calendar year 1930, to $1,550,648,723 in 1931, with the amount for 1932 down
to $325,361,625, and the amount for 1933 no more
than $160,583,846. Nevertheless, though our compilations relating to building permits do not include
certain items covered by the engineering and construction awards, as compiled by the F. W. Dodge
Corp., they disclose a record of shrinkage in building
work even more pronounced than in the other case,
and they are illuminating in revealing a downward
trend at a much earlier period. For the whole of
the last eight years since the trend disclosed by our
figures reflected a change—a change from a rising
tide to a receding tide—they show a reduction, as
already noted, from a grand total of $4,393,364,166
in 1925 to $362,954,062 in 1933. How marvellous
the contrast between these two extremes, the amount
for 1933 being less than one-twelfth that for 1925.
As a matter of fact, the 1933 total is the smallest of
all the years during *which we have been compiling
the records, which is since 1905 smaller even than
in 1918 when new construction was rigidly held down
to what was essential for the conduct of the war.
The aggregate falling off during the last eight
years in the yearly outlays has been no less than
$4,030,410,104. On the other hand, in the case of
the figures prepared by the F. W. Dodge Corp:, the
engineering and construction awards for the 37
States east of the Rocky Mountains foot up $1,255,708,400 for the calendar year 1933 and $1,351,158,700
for 1932, as against $3,092,849,500 for the calendar
year 1931, $4,523,114,600 for the calendar year 1930,
$5,754,290,500 for the calendar year 1929 and
$6,628,286,100 for the calendar year 1928, showing a
falling off in these five years of $5,372,577,700.
As to which set of figures may be taken as best
representing the course of building work, there is
room for a difference of opinion. For ourselves, as
previously explained, we are inclined to think that
the building figures which we and a few others undertake to collect furnish a better indication of the
course of new building work than the records of con-
tracts awarded, though it is not to be denied that
these latter have a peculiar value of their own. In
the first place, building permits deal with distinctively building work, and, in the second place, inasmuch as they represent projected work more largely
than work actually begun, they are a much more
valuable indication of intentions with respect to the
immediate future. When award of an engineering
contract has been made, it almost invariably means
that work will commence close upon the heels of the
award. Not so when a plan is filed for a new building
or for building work. Numerous considerations may,
and often do, intervene to postpone the actual carrying out of the plans, and in most cases the contract
for the work still remains to be awarded at some near
or remote date. Thus it is unmistakably true that
intentions with respect to new building work are
more clearly and more definitely reflected by the
building permit figures than by the other figures
referred to.
For the present it is sufficient to know that according to either set of figures new building work in
1933 was on an enormously reduced scale. Our total
for 1933 covering building permits at $362,954,062 is
the smallest, as already stated, of all the years during which we have been keeping the records. The
Dodge figures for 1933, at $1,255,708,400, are the
smallest of any year since they began making up
the records in 1919.
MONTHLY RECORD OF CONSTRUCTION CONTRACTS AWARDED,
AS COMPILED BY THE F. W. DODGE CORPORATION.
1933.
January
February
March
April
May
June
July
August
September
October
November
December
Total
1932.
1931.
1930.
83,358,000
52,712,300
59,958,500
.56,573,000
77,171,700
102,341,900
82,693,100
106,131,100
122,615,700
145,367,200
162,330,600
207,209,500
84,798,400
89,045,800
112,234,500
121,704,800
146,221,200
113,075,000
128,768,700
133,988,100
127,526,700
107,273,900
105,302,300
81,219,300
227,956,400
235,405,100
369,981.300
336,925,200
306,079,100
316,147.800
285,997,340
233,106,100
251,109.700
242,094,200
151,195,900
136,851.600
323,975,200
317,053,000
456,119,000
482,876,700
457,416,000
600,573,400
366,878,400
346,643,800
331,863,500
336,706,400
253,573,700
249,435,500
1,255,708,400
1,351,158,700
3,092,849,500
4,523,114,600
1929.
1928.
1927.
1926.
406,467,900
361,273,900
484,587,500
642,060,500
587,765,900
529.891,100
652,436,100
488,882.400
444,402,300
445,642,300
391,012,500
316,368,100
427,168,700
465,331,300
592,567.000
642,237,100
667,097,200
650,466,200
583,432,400
516,970,200
581,674,000
597,103,500
471,482,200
432,756,300
384,455,400
393,582,500
620.738,200
604,390,730
552,348,500
632,478.000
534.389,900
552,487,900
521,611,000
582,815,800
466,393,400
477,363,800
$
457,158,600
407,899,800
623,879,300
570,613,600
549,814.800
544,792,400
518,441,900
805,808,000
562,371,400
515,726,600
487,012,500
537,395.800
5,750,790,500
6.628,286.100
6,303,055,100
6,380,914,700
January
February
March
April
May
June
July
August
September
October
November
December
Total
Jan. 27 1934
Financial Chronicle
558
A year ago, in presenting the figures for 1932,
we suggested that the building industry must now
be assumed to have passed through the worst of the
period of set back and relapse, though this did not
imply that all sections of the country have proceeded in equal degree in a return to the normal
status from the unhealthy and unduly stimulated
expansion of the previous years. But a lower depth
was to be reached in 1933. In New York City, where
building activity had been maintained at virtually
full volume even during 1929, the setback in 1932
and 1933 was especially pronounced. For several
successive years the building permits in the Greater
New York as already stated had covered an aggregate
outlay of $1,000,000,000 a year, or close to that
figure. In 1933, however, the amount was down
to $78,355,247. This covers all the different boroughs, and the falling off has been especially heavy
in the Borough of Manhattan, where there has been
a veritable collapse in new building work, the building outlay for 1933 having reached only $21,022,854
against $622,434,715 in 1929. Proportionately heavy
reductions also occurred in most of the other boroughs
of the Greater City.
In any event, however, the corrective process has
now been a long time under way and a change for
the better must now be in early prospect. The only
thing that seems likely to act as a check on building
is the increase in building costs. It has been recently
pointed out by Myron L. Matthews in the Dow
Service daily building reports that increase in the
costs of building materials and labor represents a
rise of 30% over the prevailing prices of Jan. 1 1933.
This means, it is explained, that a home costing
$4,500 to build one year ago would cost $5,850 to-day.
Discussing this phase of the matter Mr. Matthews
had the following to say in the New York "Times"
of Jan. 1.
"Usually price increases are due to demand," states Mr.
Matthews. "In the present instance, though residential
construction has increased in volume, the higher prices for
material, equipment and appliances are due not so much to
demand as to the effect of National Recovery Administration codes. The immediate future holds in store the completiod of industry codification, and more particularly the
building construction industry, and meanwhile as codes
already effective prove their prophesied benefits, creating
greater mass purchasing power, and the accompanying
demand for residential space rolls up, building costs will
continue to advance.
"Cost of construction work of public character is nearer its
1926 index than private construction. This is due to the
higher wages paid on public work. It is interesting to note
In this connection that bids recently submitted for the
Thirty-third Street New York Post Office Annex superstructure are more than half a million dollars higher than
the bids first submitted on Feb. 28 1933. At that time
the D. M. W. Contracting Co. submitted a low bid of
$3,649,000 for a five-story building and $3,439,000 for an
alternate three-story building. On Oct. 1 1933, when revised bids were submitted, the George F. Driscoll Co. was
low with a bid of $4,248,800 for the five-story and $3,969,900
for the three-story building.
"On Dec. 27, with revised bids, the Driscoll Co. was low
with $4,293,790 for the five-story building and James
Stewart & Co., Inc., low for the alternate three-story building with a bid of $3,997,000. The difference between these
final bids and the original ones show that the five-story
building superstructure will cost $644,790 more to-day and
the three-story building superstructure $558,000 more."
Before proceeding further with the details of our
own figures relating to building permits, some points
of interest are found in the F. W. Dodge Corp. figures dealing with engineering and construction
awards when the figures are brought together for a
series of years—we mean aside from the large falling off in the grand totals during the last four years
to which we have already referred. The Dodge Corp.
classifies the construction contracts according to
the classes of buildings, and in the following table
we carry the figures thus classified back for a series
of years:
F. W. DODGE CORPORATION FIGURES or CONSTRUCTION
CONTRACTS AWARDED.*
Calendar Years.
1933.
1932.
1931.
1930.
Commercial buildings____
Factory buildings
Educational buildings
Hospitals & institutions
Public buildings
Religious, &o., buildings_
Social, &O., buildlngsz
$
$
'
99.371,200 122,718,200
43,490.900
127,517,100
82,307,500
39,950,400
37,252,100
48,353,000
50,908,300 117,982,500
17,668.600
27,255,000
31,056.000
38,682.500
Non-residential bldgs
• Residential buildings...
403,723,700
249,262.100
480,789,600 1.110,345,800 1,770.563,900
280,067,900 811,388,700 1,101,312,500
Total buildings
Public works
Public utilities
652,985,800
499,517,800
103,204,800
760,857,500 1,921,734,500 2,871,876,400
514,699,700 875,448,000 11651 238,200
75,601,500 295,867,000 j
Tntalrnnia.n.qInn
$
311,105.800
116,157,000
228,777,000
121,193,300
181.266,600
53,099,600
98,746,500
$
628,809,500
256.632,500
378,051,200
162,120,600
139,814,600
92,837,100
113,298.400
1 255 708 400 1.351.158 700 3 002 840 non 5 522 114500
Note.—The former classification "Industrial Buildings" has been changed to
"Factory Buildings," and "Public UWE es" are now shown separately,
•Includes projects without general contractors, sub-contracts being let directly
by owners or architects.
1929.
Commercial buildings
Industrial buildings
Educational buildings
Hospitals and institutions
Public buildings
Religious, ‘hc
Social, &c
932,688,400
756,512,400
381,908,000
152,203,700
120,777,900
106,111.200
140,019,400
1928.
884,609,600
635,390.300
398,997,300
164,728,200
76,244,600
127,947,400
214,120,800
1927.
932,911,300
494,048,800
379,795,700
162,475,000
79,467,600
156,491,000
260,714,100
Non-residential buildings
*Residential buildings
2,590.221,000 2,502,038,200 2,465,903,500
1,915,727,500 2,788,317.400 2,573.316,900
Total buildings
Public works, &a
4,505,948,500 5,290,355,600 5,039,220,400
1,248,342.000 1,337,930,500 1,263,834,700
Total construction
A 7A4 200 MR R R2R 2RR inn R a0:4 000 Inn
Note-Military and Naval buildings are now included under the general class
"Public Buildings."
• Includes projects without general contractors, sub-contracts being let directly
by owners or architects.
According to these Dodge figures, residential buildings for which contracts were awarded in 1933
involved an outlay in that year of only $249,262,100
against $811,388,700 in 1931, $1,915,727,500 in
1929 and $2,788,317,400 in 1928. Commercial buildings represented a cost of only $99,371,200 in 1933
against $311,105,800 in 1931, $932,688,400 in 1929,
while factory buildings covered expenditures of
$127,517,100 in 1933 against $625,361,500 in 1929.
As a matter of fact, all types of buildings suffered
larger or smaller decreases, testifying to the universal nature of the underlying depressing influences.
Even public works outlays, which President Hoover
and other public officials have been especially engaged in promoting, and which actually represented
a larger outlay in 1930 than in 1929 and earlier years,
thus bearing witness to the success of these efforts,
suffered a decrease in 1931 and 1932 and a further
decrease in 1933. One gratifying feature of the
Dodge statistics is that when the total for the twelve
months is subdivided to show the figures for the
different months of the year it is found that in the
last quarter of the year the amounts for each of the
three months ran considerably in excess of the corresponding amounts for 1932, showing apparently
that recovery from the extreme depths of the depression has already set in. For October 1933 the
Dodge building contracts represented a contemplated
outlay of $145,367,200 as against $107,273,900 in
October 1932; for November $162,330,600 as against
$105,302,300, and for December 1933 $207,209,500
as against only $81,219,300 in December 1932.
Returning to a consideration of our tabulations
of building permits, it is of interest to note that when
the cities are classified according to geographical
divisions, heavy falling off is found in all parts of
the country, with the single exception of the Pacific
group of cities. This has reference to the comparison
with the previous year standing by itself, and is
greatly emphasized when comparison is with the
earlier years, and expecially with 1925, when every
geographical group recorded peak figures of building. The Greater New York, taken separately from
the group in which it belongs, reveals a veritable
collapse, as already indicated. The New England
group has a total of only $31,049,688 for 1933 against
$221,048,860 in 1929 and $328,126,502 in 1925; the
Middle Atlantic group $55,287,942 for 1933 against
$525,326,750 in 1929 and $768,179,693 in 1925; the
Middle Western $33,571,860 for 1933 against $667,961,412 in 1929 and $1,101,831,475 in 1925; the other
Western $31,127,851 for 1933 against $164,763,686
in 1929 and $262,297,691 in 1925; the Pacific group
on the other hand, $101,449,449 for 1933 against
559
Financial Chronicle
Volume 138
$68,475,061 for 1932, but compares with $298,445,124
in 1929 and $472,616,154 in 1925, and the Southern
group $32,111,999 for 1933 against $259,201,885 in
1929 and $451,741,309 in 1925. It has already been
indicated that for the entire body of 354 cities contributing returns, the grand total for 1933 is only
$362,954,062 against $3,096,839,460 in 1929 and
$4,393,364,166 in 1925. • The following furnishes a
comparison for the different geographical divisions
of the country for the last eight years:
AGGREGATES OF BUILDING PERMITS BY GEOGRAPHICAL DIVISIONS.
Calendar Years.
1933.
$
New England__(60) 31,049,688
Middle Atlantic_(72) 55,287,942
Middle Western_(66) 33,571,860
Other Western_ ,(45) 31.127.851
(50) 101,449,449
Pacific
Southern
(60) 32,111,999
Total
$
%
40,556,836 -23.44
92,050,259 -39.94
59,390,236 -43.47
36.740,298 -15.28
68,475,061 +48.15
45,410.987 -29.29
78,355,247 77,902,719 +00.58
New England
Middle Atlantic
Middle Western
Other Western
Pacific
Southern
Total
Total all
1931.
$
112,378,600
234,100,823
183,777,508
93,656,351
136,850,981
110,732.571
1930.
$
154,011,851
325,491,320
350,826,501
125,723,919
231.878,275
181,623.518
871,496,894 1,369.555.384
349,282,609
407,067,669
(354) 362,954,062 420,526,396 -13.69 1,220,779,503 1,776,623,053
1929.
New York City
Inc. or
Dec.
(353) 284,598,815 342,623,677-16.94
New York City
Total all
1932.
(60)
(72)
(66)
(45)
(50)
(60)
$
221,048,860
525,326.750
667,961,412
164,763,686
298.445,124
259,201,885
1928.
$
234.656,096
619,562,863
865,597.452
186,147,062
315,638,136
341,491,702
1927.
1926.
$
$
258,140,426 264.938.767
671.922,911 736,063,732
944,020.904 1,001.879.097
174,055,786 199.922.916
376,710,783 419.876,044
345,439,047 439,232,903
(353) 2,136,747,717 2,563,093,311 2.770,289,857 3.061,913,459
960.091.743
937.637.139
880,746,413 1,060.051,394
(354) 3,096,839,460 3,500,730,450 3.651,036,270 4,121.964,853
Among the larger cities of the country virtually,
all planned for greatly reduced outlays. At Boston
the total for 1933 is only $7,038,080 against $51,223,171 in 1929, $55,445,025 in 1928, $56,809,204 in
1927 and $70,718,365 in 1925. Philadelphia saw its
total further reduced in 1933 to $6,616,530; in 1925
Philadelphia's total of new building work was no
less than $170,913,530. Chicago has also suffered a
further tremendous shrinkage, its total of new building work for 1933 having been only $3,683,960
against $202,286,800 in 1929 and $360,804,250 in
1925. Detroit likewise has suffered a further great
diminution, with only $3,945,765 for 1933 against
$100,542,497 in 1929 and $183,721,438 and $180,132,528 in 1926 and 1925, respectively. Among
Ohio cities the total for Cleveland for 1933 is down
to $2,748,000 against $37,782,500 in 1929 and $54,592,425 in 1928. Milwaukee has to its credit only
$2,012,362 for 1933 as against $46,656,912 in 1929
and $45,588,857 in 1928. St. Louis planned for
$10,106,632 new work in 1933 against $4,331,904 for
1932, but comparing with $27,330,623 in 1929 and
$42,813,495 in 1928. Out on the Pacific Coast
San Francisco shows big recovery for 1933 at $56,448,751 against $16,427,915 for 1932, but Los
Angeles is down to $15,283,216 for 1933 against
$93,016,160 in 1929, as much as $152,636,436 in
1925 and no less than $200,133,181 in 1923.
We have also again compiled the building statistics for the Dominion of Canada. The Dominion has
suffered a further shrinkage in its contemplated new
building work,the same as the United States. Taking
Eastern and Western Canada combined the new
building work increased steadily from $113,624,774
in 1925 to $226,211,128 in 1929, having in this period
of four years almost exactly doubled, but for 1933
is down to $21,834,499.
We now add our very elaborate and very comprehensive detailed compilation, covering the whole of
the past fifteen years, and embracing all of the
leading cities in the United States, as also those in
the Dominion:
UNITED STATES BUILDING OPERATIONS.
Inc. or
Dec.
1931.
1930.
$
$
%
$
$
$
1929.
1928.
1927.
1928.
1925.
1924.
1923.
1922.
1921.
1920.
1919.
$
$
$
$
$
$
$
$
$
$
cr5
New York CityManhattan
Bronx
Brooklyn
Queens
Richmond
21,022.854
20,752.305
19,592.270
15,089,212
1,898.606
28.123,470 -25.25
8,670,140 +139.35
21,576,439 -9.20
16,058.706 -6.04
3.473.964 -45.35
130.831,045
65,399.250
75.954.449
68,535.620
8,762,245
198,662.088
56.115.642
73,903.136
70.044,381
8,342,422
622,434,715
89.416.707
149.343,306
87,478,012
11,419,003
381.377.243
189,824,853
202,223.346
146,509,564
17.702,133
290,320,563
172,588,681
225,43,224
179,624.011
12.769,934
398,931,402
157,801.068
258,914.583
179.409,538
13,714,755
286,653,202
133.515.973
242.918.892
165,400,100
18,017,850
204,032.279
128.427,577
284.215,480
158.317,300
12.565.309
165,195.601
113.181.890
211.627,417
136.721,778
11,843,123
144.605.451
75.667.896
162,132,747
83,133,933
10,747,167
139.199,563
22,324.741
80,931,166
42,650.472
5.723,000
106,773,373
23,383,799
77.485,679
49,122,617
4,734.721
Total N. Y. C
78,355.247
77,902,719 +00.58
349,282,609
407.067,669
960.091.743
937.637,139
880,746,413 1,060.051.394 1,008.571.342
846,505.817
785.557,945
638,569,809
476,287.194
290,828,942
261,500.189
New England States-Mc-Portland
292.684
657,618 -55.50
870,759
1,566.831
2,133,188
2,738,888
2,326,793
4,245,238
2.012,949
3,112,183
4.528.938
3,079,749
1.538.243
1.392.121
2,059.300
N. 11.-Manchester
378,664
464.826 -18.54
709.306
774.302
1.241.253
1.375,983
1,908,592
1.369.930
2.361,120
2,849.093
2.083.308
2.085.000
1,164.866
2.612.795
1.784,815
*150.000
202,200 -25.82
456,000
1.555.7C0
842.675
749.800
903,320
1.148.400
1,094.600
409.200
462,400
394,450
206,900
237.450
392,300
Mass.-Attleboro
Beverly
Boston
Brockton
Brookline
Cambridge
Chelsea
Chicopee
Everett
Fall River
Fitchburg
Haverhill
Holyoke
Lawrence
Long Meadow
Lowell
Lynn
Malden
Medford
New Bedford
Newton
North Adams
Northampton
Pittsfield
Quincy
Revere
Salem
Somerville
Springfield
Waltham
Westfield
Worcester
97.450
319.749
7.038.080
325.506
899.004
833.822
184,831
179.735
212.178
190,536
91,369
102,298
167.525
197.498
164,380
231,585
418.820
146,698
326.615
232.660
1.685.353
119.755
161.526
277.180
364.417
152.295
539,327
239.003
747.361
154.430
213.396
1.166.614
*200.00 -51.28
+18.05
270.87
9.453,61 -25.35
+3.04
315.88
1,359,67 -33.88
1,977.15 -57.83
284.935 -35.13
110.010 +63.38
121.255 +74.98
445.283 -57.21
188,648 -51.57
129.092 -20.76
240.875 -30.45
234.738 -15.86
265.670 -38.12
159,645 +45.06
419.980 -00.27
253,201 -4.21
456,115 -28.39
194,205 +19.80
1.343.208 +25.47
52,140 +129.68
220.625 -26.79
420.062 -34.01
574,032 -36.51
188,910 -19.38
646.144 -16.53
555.754 -56.99
1,019.015 -26.66
223.834 -31.01
347.802 -38.64
1,589.992 -26.61
*300.000
641.5J2
24,679,886
885,220
2.015,316
4.716.235
248,676
582.329
1.445,251
697,105
259.588
360.862
834,950
763.091
566.550
633,480
1,520.647
975.484
2,238,682
383.230
4.887.579
126.695
598,475
1.618.230
1,839,062
279,675
872.073
980,665
3,693,443
856.913
113.083
5,594,581
*500.000
681.653
24,882,551
1.113.417
3.688.061
11.063.211
202,435
354.935
1.523.580
777.636
879.320
340.860
1.703.095
591.372
597.950
1,144,424
3.115,586
1.133,678
1.656.466
982.463
5.884.777
428.950
893.156
1.732.290
2.758.729
694.901
1.161.595
1,380,406
5.668.263
1.730.946
434.894
6.328.166
875,521
1.253,848
51.223.171
1.466,834
5,037,713
12,166,140
748,521
1.456,255
1,125,782
792,256
540.954
390,640
1,256,295
857,696
711,450
696.330
3.941,999
1,878.948
3,943,495
788.555
6.865,796
375,075
1.651.789
3,371,784
4.565.448
730.375
1.792.339
3.086.154
5,095.049
2,446.265
650.000
7.411,888
735,945
1.382.885
55,445,025
1,725,858
6.291,422
7,289,432
1,147,515
1.294,190
1,760.759
2,835,644
822.350
554,065
1,260.200
613.345
713,100
941,750
3,786,804
2,892,942
4,514,923
1,068,852
10,807,643
666,520
1,242,893
1.900.140
6.052,953
1.227,142
1,727,325
3,513,417
5,976.799
*2,500.000
*700.000
7.705.012
678,126
1,082.790
56,809,204
1.374.359
5.902.440
9,234,767
855.060
1.175.460
2.044,330
1,845,893
637,975
909.625
2.044.200
1.261.094
650.750
963,790
3.857.775
3.800,093
4,370,512
1.412,952
10.138,606
578,685
908,652
1.653,240
5.832,906
1.789,220
2,723.745
3.385.850
8.855,810
2.344.685
706,764
8.812,324
1,100.000
907.684
51.484,404
1.879.405
4.951.499
8.280.842
1.090,249
1,544.560
3,485,255
2.173.561
1,563.888
844,715
2.607.175
1.745.552
822,400
1,574,635
4.612.145
3,800.093
5,743,860
2.309.955
8,393,954
386.889
1,125.735
1,919.850
6.205.276
1.694.387
2.106.125
5.065.991
8.733.706
2.797.920
914.713
12.980,557
1,176,424
812.432
70,718.365
1,811.112
9,805.841
12,070.704
981.979
3.675.785
2.183.747
3.772.090
2,127.714
667,050
3.348.150
3,072.230
614.500
2,597.419
4,674,993
3,005,811
5.612.172
8.339.300
12,297.313
419,372
1,503.475
2,777.859
8,288,031
1.614.045
2.186.900
5,653.030
15.002,140
2.678,226
1,063.089
18.089,639
493,082
1,239,375
53.031.931
2.441.250
9.339,973
8.369.912
2.161.204
3.540.445
3.760,150
4,449,894
1.641.862
713.605
3.575.918
3.762.864
525,650
2,820.687
3,852,550
3.372,580
4,326.420
6.837,400
8,646.331
340.290
725.800
2,722,545
5,693,819
2.083.571
3,098.445
3,604.730
13,100.219
1,501,550
800.000
14,789,133
526.459
1.471,675
40,675,558
2,205.068
6,638.275
5.341,128
1.120.125
2,578,690
1.468,770
5.467.027
1,113,088
1,025.910
3,322,175
7,798.621
708.905
4,026.391
3,019.272
2,357.618
3.481,678
9,062.700
6,821,418
314,965
1.667,850
1,402,105
4,866.812
1,318.785
1.229.975
3.185.356
10.997,681
1,667.321
599,552
11,136,653
400.000
499.240
57.496.972
1,906,252
8,465.850
4,695.879
742.284
1,813,941
2.011,737
5,027,737
1,057.140
1,286,050
2,588,465
5,626,179
600.000
2,901.174
1,560.673
1,901,439
3,210,330
7,057.240
6.747,432
337,280
112,050
1.628,115
3,970.651
1,186.635
988.333
3,136,602
9,077.645
1.561.863
163,525
8.227,786
300.000
434.223
24,048.803
1,633,699
3.455,249
1,866,180
620,520
995,255
694.905
1,704,213
1,138,874
• 773.180
1,034.697
3,037.495
600.000
1,579.784
1.356.101
1.248.250
1,348.191
3,847.006
3.496,516
238.985
809,000
794,758
1,902,593
847,753
684.514
1,838,455
5,669,634
754,402
500.000
6,706,371
500,000
424.340
28,167,253
1,564,289
2,572.963
5,277,611
572,258
843.000
740,985
3,076.255
1,722.395
1,121,050
3,352.595
2.544,191
600.000
4,981,378
1.033.175
1.149,475
1.333.189
5.943.414
2,926.721
335,760
750,920
428.875
2,022,748
521.645
539,701
1,384,456
6,675,054
539.050
500,000
6.748,086
400,000
655.205
23,520,855
1.146,088
3.086,400
4.299,818
560.172
1,628,150
928.700
1,800,000
1,065,885
1,324.975
1.875.990
1,738,061
450,000
3,352,710
1.949.066
713,049
1.174,156
7.005,420
3,569.399
230.850
540,000
746.550
2,159,697
552.285
859.440
773.099
5,879.845
509.615
300.000
5,925.164
Conn.-Ansonla
Bridgeport
Bristol
Danbury
Hamden
Hartford
Manchester
Meriden_
Middletown
New Britain
New Haven
New London
Norwalk
Norwich
Shelton.
Stamford
Stratford
Torrington
Waterbury
West Hartford
West Haven
Willimantic
52,000
*183,000
127,812
169.600
337.839
891.921
122.645
322,443
196.315
322,829
2,194.475
880,690
576.834
175.054
*25.000
489.768
183.315
149.422
286.735
1,135.084
300.364
57,665
*250.000
801,294
115.337
257.932
620.568
2,183.567
215.645
339.53
219.024
417.45
2,645.77
433.74
651.736
279.94
52.200
472.489
418.429
165.652
310.143
1,019.193
480.917
45.765
-79.20
-77.16
+10.82
-34.25
-45.56
-59.15
-43.13
-5.03
-10.37
-22.67
-17.06
+103.05
-11.49
-37.47
-52.11
+3.66
-56.19
-9.80
-7.55
+11.37
-37-54
+26.00
*600.00
3.036.634
657.697
522.240
1.615,980
5,732.875
428.447
1,142.498
737.864
891.321
10,1)11.976
2,294,810
1,862.663
155.846
79.725
1.074.485
1.100.779
236.891
830.137
2,494.086
856,960
541,120
*800,00
3.235,022
902,279
1.223.391
1.554.811
6.458.883
372.245
950,524
1.073.418
926,164
16.406,195
1.273.120
2,365.724
392.930
180.145
2.640.490
1.341.410
1.113.772
2.138.224
4,563.664
1.156.592
289,530
*1.500,000
5,584,499
2,306,789
1.35/,707
2,030,898
16,922.868
833,905
1.278.280
1.148,005
1.863,299
13,284,494
1,613,393
3,518,745
392.845
175,160
4.744,754
1,660.274
1.450.820
3.000.950
6,315,939
2,000,000
412,225
*2.000.000
6,129.918
1.982.727
1,185,952
2.481,151
12,936.234
1,297,681
1.277,721
1.136,909
3.482,974
8,054.927
2,193,342
4,781.698
774.236
215.865
5,179.238
*900.000
1,075.520
3,488,300
6,445,061
2.432.252
50,450
*2400000
5,429,445
2,098,471
2.730,920
2.254,514
17,798,928
792,575
1.569,416
1.780,393
4.454.458
12,487.432
1,801.240
3,592.009
606.243
255.800
6.341,717
968,886
1,220,333
4.916,811
6.317,738
2.013.069
300.655
2.000.000
3.861.218
1.487.971
1.136.710
1.880.630
16,829,158
975.120
1,231.687
1.373,367
6,982,728
13.182.785
1.276.815
3.054.352
417,936
128,525
4,436.758
751.718
1,090,658
5.261.715
5.478.209
1,692,795
212,455
2.000,000
4,308.312
1,045.835
1,707,461
2.348.263
22.130.193
2,360.820
1,261,320
941.140
7,903,466
8.345,366
1,556.630
3,513,204
1,372.875
211.868
5,143.229
543.330
600.000
5.993.095
4.423.014
2,658,601
633.998
1.600,000
3.202.407
1.663,854
1,157.752
3,082.257
18,824,463
2.754.031
2.388.348
680.605
5,961.775
8,372.250
1,608,387
2.777.251
602.063
450.000
3,846.970
558.681
500.000
4.029.190
4,624.354
2,365.247
355.875
1,500,000
4,207,527
1,600.000
575.703
1.500.000
9,281.352
2.082.003
909,442
500.000
3,297,397
8,934.663
479.625
2,678,063
669.197
324.955
3,724.251
225.495
400.000
2,776.757
3,279.989
1.477,082
500.000
1,400.000
2,259,998
1,500.000
535.870
1.379.005
8.693.130
1,164,866
1,171.299
400.000
3,763.112
9.625,918
827,175
1,400,000
3,095.170
1.500.000
468.803
796.947
7,827,216
899.780
981,050
348,896
1.602.169
6,487.808
329,175
1,304,570
5.295,255
1.522,775
625.715
635.285
20.956,786
1.056,410
1,326,075
371.188
2.578,339
5.134,343
528,840
533,627
3,835,339
1,862.075
555.794
844.043
8.351.521
300.000
1,232.800
170,410
3,832,320
8.910.917
1.456.320
800.000
183.355
2.665.019
700.000
345.000
2.457,075
4,025,465
1,110.348
225.000
800.000
154.250
1,800.000
700.000
500.000
3.179.325
2.292.935
1.339,460
300,000
762,925
148,250
1,793,414
695.730
428.280
3,969.090
3.034,729
1.215,853
325,000
277.200
200.575
1,299,406
888,895
419,463
4.967.867
2,234,850
867,888
350,000
R. I.-Central Falls ______
Pawtucket
Providence
60.125
285.479
2,520.950
48.895 +22.97
+4.84
*300.000
2.224,589 +13.32
98,375
748.500
6.382,150
154.780
1.694.125
10.879.814
821.856
1.994,925
14,943,495
349.338
2,827.964
16.015.119
752.130
3.502,683
23.113,069
1,165,780
3,838.228
23,780,900
1.074.681
5,199.895
22,748,500
606.680
3,440,448
25,381.700
716.925
4,836,114
22.472.400
655.622
2,520,835
17,462.100
324,398
2,115,287
13,947,100
359,770
1,736,600
10.084.200
275,000
1.621,385
8.309,100
39.905.100 -23.64
40.558.8341 -23.44
110.515.997
112.378.660
151,646.127
154.011.851
219.521.751
221.048.860
229.874.398
234.656.096
258.140.426
254.548.417
261.884.415
264.938.767
324.613.298
328.126,502
286.770.998
289,548.249
231.963.109
234.641.172
219.395.890
132.059.384
._ _- --
161.024.600
138.503.269
Vt.-Burlington
Total New England:
..144...30.472.854
cities
59
RI MIA IIRR
an
341,255.890
214.855.056
288.868.987
192.803.601
15,440.580
a13!Ilan10 leprieLIU
1932.
P£61 Lz 'ay.(
1933.
Paterson
Plainfield
South Orange
Trenton
West Orange
Pa.-Allentown
Altoona
Bethlehem
Bradford
Chester
Easton
Erie
Harrisburg
Hazleton
Lancaster
Phlladelphla
Pittsburgh
Pottsvllle
Reading
Scranton
Wilkes-Barre
Wilkensburg
Williamsport
York
$
$
Inc. or
Dec.
%
1931.
1930.
$
$
1929.
$
1928.
1927.
1928.
1925.
1924.
1923.
1922.
1921.
1920.
$
$
$
$
$
$
$
$
$
1919.
$
2,927.455
210.810
862,528
2.063,777
269.143
212.166
*57,000
181.650
607.521
277,900
539.355
453.995
251,422
1,300,328
407.397
668,550
480.014
618.920
115,906
399,669
1.867,674
2.852,569
229.840
810,828
3,119.447
260,667
399.349
306,819
317.556
677.317
*450.000
747,959
919.739
437.741
2,436,270
565,314
1,330,848
719.510
461.475
245.221
636.238
2,833,078
+2.63
-8.28
+6.38
-33.84
+3.25
-46.87
-81.42
-42.80
-10.30
-38.24
-27.88
-50.46
-42.56
-46.63
-27.93
-49.76
-33.29
+34.12
-52.73
-37.18
-29.07
6.670.846
1.299,236
990,535
9.240.971
848.436
739.509
740.371
275.300
3.815.453
1.062.341
4.221.923
1.267.398
1.298.148
6.282.387
1.8,57.948
6.269.945
2,219,008
994,523
213.335
6.334.160
10.657.588
10,596,246
1.142,503
2,405.723
17.303,110
1,846,553
782.854
1.036.632
251.615
4,197,164
1.198,647
3.616.387
3,787,546
744.467
8.008.274
5,564.205
5,418,484
3.026,943
1,527,746
434.823
6.001.825
9,893,303
9.836.808
1,490.881
4,220,843
24.181.500
1.552,816
1,927.303
1,135.464
627.945
6.179.243
1.079,546
7.664,597
5.151.564
1.616.048
13,303.261
3,672,695
11.269,695
2.041.942
2.345.835
1.101.400
7.194,967
21.489.219
16.042,889
512.086
3.926.054
24.516.083
1,976.377
1,846.870
1.736.789
724,965
14,280.949
2.136.742
11.357.809
4.963.056
1.724,820
17.620,798
3,199,405
13.226,579
1.342,859
3.931.495
1,158,447
12,633,281
37,692.877
17.452.579
858,354
4,298.151
33,076.303
1,341,391
2.723,980
2.143.693
1.261.875
16,776.052
1.511.656
9.828,581
4.810.203
1.137.667
22,589,418
4.311.475
21,827.851
3,218.557
3,359,500
1,059.788
10,147,692
34.770.482
26.746,016
501.522
3,959,372
27,406,896
2,750,842
2.164.941
1,696.503
433,062
24,766.256
3.495.915
8.218.168
4.268,846
2,196,032
21,637,641
3,777.620
14,356,426
3,279,714
5.479,855
622.014
14.152.143
25.829.843
15,654.917
625.776
4.616.431
26,773.944
2.262.967
3.198,242
1.599.009
815,068
11.371.198
1.728.205
9,498,267
6.727.778
2.147,646
28,102,462
7,933,088
11,919,570
3,219,025
5.182.340
1.028,069
8,337.775
20.909.473
12.849.700
777,240
4.855.215
28.499,393
1,960.440
3,031.755
1,288,162
640,527
10.164.657
400.000
8,307.523
5,299.523
1.781,335
29,588,762
8.229,833
9,479.161
4,303.666
8,565.526
1,265,465
7,994,275
13.820.075
10,594.138
807.822
5.536,372
27,907,000
1.500.000
3.500,897
8,805,89
72.5.25
4,049,601
25,891,000
1,400,000
4,211,497
426.896
2.278.529
18,642,000
1.400,000
3.576.299
483.649
1.515,211
13,121,000
1,300,000
3,030.388
357,944
1,672,031
13,033.000
1,200.000
1,082,075
6,259,515
379,601
6.377.255
5,762,778
2,330,965
22,938,764
4,951,604
10.228,350
2,325,949
6,204,592
2,007,195
5,273,109
10.543.700
8.58,594
7,990,483
809,000
3,500.000
4,251.607
2,343.985
17,347.873
3.554,119
9,909.524
1,376,313
6,922,783
1.684.750
3.900,174
8.550,750
532,409
3,596,284
800,000
3.209.743
3,179.550
1,144,050
15,940,815
2,513,231
.5.838,598
1,756,777
3,102,860
1,076.920
309.925
2.526.002
750.000
2.981.119
3,670,050
782,050
9.951,813
2.601.108
6,893,180
676.561
2,220,079
2,848.587
505,000
3,526.981
3,169,241
2,009,515
9,641.579
1,978,38.5
6,122,638
673,189
3,287,750
4.601.500
4.720,700
2.713.600
403.203
328.256
367.700
52.458
224.674
322.522
218.897
582.881
143,087
157.786
199,226
855.907
89.090
432.981
2,438,480
123.702
289,008
381.684
764.228
450.249
332,137
378,264
282,501
544.601
173.926
597.335
76,753
479.607
547,579
508,691
461,258
1,062.799
450,427
365.075
1.511.931
394,335
914.418
2,417,706
102.489
351.118
480.328
850.982
336.154
*300.000
719,447
925.296
-25.97
+88.73
-38.44
-31.65
-53.15
-41.10
-56.97
+26.37
-86.54
-64.97
-45.43
-43.39
-77.41
-52.65
+00.85
+20.70
-17.69
-20.54
-10.19
+33.94
+10.71
-47.42
-69.47
802.640
447,000
1,621.848
243,205
546,964
1,296.519
1.433.122
2.587,696
2.266.257
339.937
1.749.092
4.362,435
770.173
1.483.156
6,305,045
404.578
484.691
1.249.158
1.164.715
1.358.897
*700.000
1,572,237
1.744,885
1,402,607
786.650
2,583,156
1,136.541
2,581,097
1,492.465
2,678.736
2.186.365
1,776,984
827,843
1.600.480
12,231,639
884,751
1.939.867
10,199.323
983,420
1,202,222
2,157.602
3.947,134
1.700.152
1,148,612
2,448.909
2.022,639
6.494.065
1,143.730
4,308,889
741,503
6,163.791
2,471,815
6,011.178
4.626.348
1,948.999
747.877
2.124.243
15,396,866
5.877.428
3.668,361
30.538,825
1.554,615
2.378,863
4.927.219
4.917.273
2.155.828
2,117,008
3.508,888
3.264,454
8.288,607
1.994,520
4,630,335
504,960
7.427,850
3,542,055
7.696.066
5,334,906
4.491.511
564,263
5.639.280
12.895,094
6.308.205
4,708.962
36,246.382
2.177,979
3.168.204
3.201.003
7.060.569
3.420.505
2.034.215
4.296.287
4,418.348
5.731.639
1.979,600
6.070.867
623.270
5,330,327
3.389,065
12.319,,119
10,641,384
3,672,349
1.535,424
12.960,227
13.924.080
5.772.698
5.460,079
52.632.698
3.711.186
5.585.883
4.708,851
6,296,363
5,704.445
2,497.355
4,529.273
3.407.332
9.942J68
3.128,877
4,912,918
711,815
6,457.628
3.809015
9.144.024
1,955,866
1 .126,481
1 .230.921
9.090,751
21,006.103
4.250.213
7,329.752
45.059.718
2.482.566
3.235.881
3,374,188
7,623,640
4.889,781
3,104.120
5.019.118
3.602.124
12.477,769
3.686.091
5.766.251
1,343,8.52
7.912,711
5,221,477
7.484.219
7,862,506
2,656.394
1.757,097
9.724.191
21.284.814
6.485,351
6,741,508
40,996.478
3,606,630
3,851,753
6.659.357
8.462.553
3.689.357
2.576.775
7,092.009
2.982,174
13,541.939
3.592,267
3,964.448
600.000
6,337,940
3,423,644
6,819,810
6.279,352
1,996,118
773.701
10,073.652
19,612,367
6,504,132
7.551,820
42,483,876
2,640,205
2,142,050
3.966.745
7,511,728
3,817.444
2,398,628
5,496,765
2.084,883
10,147,518
5,535,685
3,551.098
528,903
8,121,243
4,764.748
4.473,609
6,545,960
2,038.936
567.821
7.902,614
21.653,720
3,046,920
6.870,748
35,507,219
1.834.687
1,821,916
3,712,750
7,746,157
2,562,023
2.176.507
6,642.98,5
2.283,509
8,508,253
3,537,500
3.521,691
652.551
4,343,192
2.957,970
4,701,984
6,315,839
1,682,866
488,162
4.250,012
14,265.710
6,464,519
3,039.183
1.852.634
239.182
1,908.327
2.389,925
3,955,879
3.547.449
1,797.644
656,421
2,418,389
12,702,972
8,942.789
2,317.199
1,000,000
2,279,198
2,625,505
900,000
2,781,430
2,181,325
3,052,926
2,835,058
774,943
1,974,919
1,277,265
7,393,049
3,421.949
1,714,666
4,650,790
5,449.372
712,089
913,688
1,189,542
4.557,951
4,897,333
28,585.166
1,425,262
863,479
4.586,115
5.696,013
3.021,772
2,189,393
4,301.143
1.812,526
3,493,545
20,771.205
478,750
1.395,665
3,493,545
4,405,809
1,552,398
800,000
3,306,131
920.178
900.000
1,100,000
20.890.187
20.576,695
1,072,262
706,521
371.365
1,156.208
1,694.658
1,649.405
4,599,541
3,686.185
922,247
1.370,838
700,000
800,000
6,419.957 , 3.323,053
638,855
479.656
+15.43
+18.82
-57.11
-53.74
-69.51
-62.03
-26.82
-51.15
-20.96
-61.02
-49.56
-71.94
+32.05
-33.98
-78.41
+38.98
-28.38
-19.16
+63.11
822,495
408,019
456,700
714.150
772.495
184.857
2,678.901
1,552.390
539.702
538.423
35.126,060
13.061.730
727.963
2,891.906
1,402.184
1,196.061
326,267
595.521
796.068
2,270.422
1.373,467
1.082,865
*400.000
1,190.261
568.883
3.315.378
1.987.134
512.125
1.144.306
55.267,390
20.759.002
1.007,555
2.573,356
3.067,695
1.603.194
852.965
1,287,589
1.696.197
4,082,265
1.997.311
2,933.237
694.231
1,500.000
2,004.774
6.430,471
8.059,780
580.811
1.776.166
106.228,915
36,174.512
736,652
6.181.833
2.956.814
3,457,073
1.403,245
1,288,775
1.458.719
5,935,040
3,375.618
3.858,717
1.015.213
1.794,797
732,538
4.763,718
5.606,175
1.187.764
2,829.938
111.804.680
40.254.060
1,536,375
3,828.259
5.877,149
3,921,934
1,915.561
2.080.740
1,726,546
6.688.169
3.059.877
2,447.507
547.335
2,414,715
1.299,670
5.393,086
3.569.365
1,915,488
2.908,425
117,221.245
37.139,462
1,892.300
4,601,326
6,340,773
5,212,852
1,932.390
2,780,958
1,711,772
9,167,690
3,059,818
2.127,821
700,000
3.671,500
2,224,893
6,092.221
4.333,265
2,341,284
2,328,107
140.267,200
43.790,103
3.405.473
5,317,675
5,566.677
4.102.924
3,100.326
2,229.805
1.359.487
8,659.765
3.015,438
6.156,600
798.290
3.363,592
2,514,615
8,685,683
4,336.581
2,952,307
3,965.021
170.913,530
41,512,222
2,021,585
7,273.569
6,921.323
4,286.752
2.379.110
1.915.063
3,566.777
5.344,362
3,355,194
2.447,482
611.608
2,082,760
2,032.318
7,036,299
5,315.340
2,561.930
4,756,705
141.737,460
34,156,550
1,193.910
6,125,827
6,001.496
4.554,338
2,166.885
2,124,663
2.897,005
3,344,458
5,113,670
3,313.242
3,052,373
1,944.962 • 1,564,622
733,555
237.315
1,634,096
2.304,380
1,780.820
1.367,756
4,860,924
4,262,524
3.873.640
7.389,345
1,605.150
4.025,300
2.640,665
3,730,730
122,650,935 114.881,040
35,255.375
32.928.962
1.814,268
1,771.818
1,624,516
507.575
2,000.000
1,453,346
3,348,360
2,712,598
475,616
1.323.456
42,790.780
23.429,744
2,630.730
1.634.598
740,922
275,890
1.701,679
1,105,864
3,737.279
1,190,690
258,150
1,286,638
55,305,390
16,048.052
664,518
3,304.573
2,739.685
654.873
967,223
65,088,750
14,731.616
1,049.366
4,982.351
3,485,854
1.440,400
1,430,240
1,887,205
1,070,385
2,219,665
1,837,886
543.450
900.000
1,003,191
2,450,575
3,021,855
1,360.216
411.150
833,405
695,596
3.262.325
2,112.372
834,286
714.300
682.382
663,972
827.985
138.674
102.614
75.989
73.473
192.192
483.258
241,305
345.409
141,165
6,616,530
2.520,251
180.685
326.391
458.032
788,064
55.561
412.716
388.168
717,315
116.710
239.249
164,282
240.986
506.203
660.453
493.990
437.036
362,135
13,118.835
8,983,157
136.834
494.354
2,121.440
567.033
77.576
510.514
237,978
4.382.480
3,780.831
3.302.343
1,701,665
1,279.744
2.153.414
2.221,000
1,046,184
2,482,615
1:165-,449
3e1.-Wilmington-
2,135,484
1,407,923 +51.68
3.351,286
4,993.738
6.314,843
5.676,274
6,927.279
4,967.770
4,040.640
3.868,934
3.776,942
2.827,044
2,236,710
3,840.531
5,911.859
1d.-Baltimore
Cumberland
Frederick_
6,629,106
171,784
*60,000
12.752,300 -48.02
99.165 +73.23
*90,000 -33.33
29,571,120
292,989
181,007
32,628.952
251.053
212.631
39,809.880
535,525
491,204
34,638.350
1,008.544
315,500
34,125.348
944,545
111,000
42,438.705
772,510
651.298
45,364.270
2,417,147
561.662
45.771.050
1,428,711
425.893
39,156.623
1,471,024
403.439
43,263.210
1,027.999
315,971
33,247.726
1,102,674
750.545
24,535.692
2,500.000
117.410
26,768,884
4,045,362
176.538
3. 0.-Washington
6.509.440
11.298.985 -42.39
30,821.649
28.578.772
36.129,785
51,255,080
36,328.830
63.499,330
64,711,013
46.173,128
49.744.923
36.197,059
18.999.926
19,706.296
20,420.292
-49.14
-19.76
+87.20
-24.91
878.982
1,021.207
314.390
642.690
6.213.990
239.659
597.575
1,110.922
2,096.252
503.273
1,538.271
1,790.495
2.136.924
1.189,391
748,815
1,937,827
1,503.308
1.013.265
2.505.968
2,397,891
3,090,885
559,412
1,859,721
1,811,237
2.544.625
555.960
5.479.744
3,294.232
5.326.809
1.872.611
8.525.780
5.157.876
3.824.989
1,168.542
5.379.257
3,986.341
3,157.996
2,000,000
1,920.414
1,840.982
3,588.322
3.342.020
2.436302
1.251.377
2,401.709
1.160.068
2.428.623
485,971
90,053,559 -39.81
09 ncn 950 -30 u4
223.767.440
224 mo_82:3
315.538.044
325.491.32(1
507,951.663
525.326.750
594.311.952
619.562.863
645.524,495
671.922.911
708.501,218
736.063.732
744.953.702
768.179.693
658.618.361
681.768.671
588.343.103
504.785.342
307.818,203
281.425.985
284.851.374
V. Va.-Charleston
Clarksburg
Huntington..
Wheeling
Total Middle Atlantic:
66 dties
70 Afton
266,581
98.793
211,943
244,248
54,206,539
AR 957 042
524.149
123,125
113.216
325.276
malreuu
N.J.-Atlantic City______
Bayonne
Bloomfield
Caldwell
Camden
Clifton
East Orange
Elizabeth
Hackensack
Hoboken
Irvington
Jersey City
Kearney
Montclair
Newark
New Brunswick
Mtijizsg
1932.
Giagrarrio
Middle Atlantic States:
New York-Albany
Auburn
Binghamton
Buffalo
Elmira
Jamestown
Kingston
Middletown
Mount Vernon
Newburgh
New Rochelle
Niagara Falls
Poughkeepsie
Rochester
Schenectady
Syracuse
Troy
Utica
Watertown
White Plains
Yonkers
1933.
ger OU11710A
UNITED STATES BUILDING OPERATIONS-(Continued).
UNITED STATES BUILDING OPERATIONS-(Continued).
1932.
Inc. or
Dec.
1931.
1930.
1929.
1928.
1927.
1926.
1925.
1924.
1923.
1922.
1921.
1920.
$
$
%
$
$
$
$
$
$
$
$
$
$
$
$
Ind.-Elkhart
Fort Wayne
Gary
Hammond_
Indianapolis
Kokomo
Michigan City
Richmond
South Bend
Terre Haute
111.-Aurora
Bloom1ngtonChicago
Cicero
Decatur
East St. Louis
Elgin
Evanston
Freeport
MolineOak Park
Peoria
Quincy
Rockford_
Rock Island
Springfield
Mich.-Ann Arbor
Bay City
Detroit
Flint
Grand Rapids
Highland Park
.lason
Kalamazoo
Lansing
Muskegon
Pontiac
Saginaw
Wis.-Kenosha
MadLson
Manitowoc
Milwaukee
Oshkosh
Sheboygan
Shorewood
Superior
Total Middle West:
53 cities
66 cities
Other Western States:Mo.-Joplin
Kansas City
St. Jos
St. Louis
Sedalia
Minn.-Duluth
Mankato
Minneapolis
St. Paul
Winona
Web -Lincoln
Omaha
FRASER
Digitized for
56.11
175.819
118.685
190.580
*1,874,000
85,755
42.770
85,400
294,675
194.124
106.765
256.350
3.683,960
56.165
166,475
212.742
105.953
402.600
106.981
102.685
122.940
1,892.520
68.565
115.175
186.426
535.929
234.342
162,755
3.945,765
417.985
434,545
57.341
84.788
231.724
107.558
361.646
70.893
221.272
150.455
206.188
570.199
2.012.362
261.876
650.962
64.577
95.927
921,694 -18.09
2.076.667
9.298.891
22,310 -13.27
76,235
280.650
61.791 -57.92
221.157
394,021
86,215 -2.63
178.015
367,833
385,037 -73.60
650.046
1,609,771
9.249,715 -42.68
21,733.465
40,068.782
8,928,250 -69.22
11.688.650
32,440.000
1,753.250 -52.99
3,369,450
5.585.500
840.381 -41.99
2.855,432
5,958.214
1.047.755
55.390 -46.97
848.559
348.008 -81.46
792,372
1.621.634
804.389
405,052 -54.22
1,492,607
737.957
344,051 -57.30
717.563
172.450
95,135 -81.46
234.310
127,500
124.458 -5.81
695.887
106.850
60.050 -58.43
305.397
1.193.852
85.699 -32.93
773.510
2.272.258,
982,732 -61.41
9.691.46
1,474,0721
2.821.414
227,793 +139.74
*100.000
*40.000, -46.94
206,67
1
299,735
94,573 -40.66
527.207
2,445,712
1,581,507 -88.88
3.054.906
1,048,255
1,190.810
135,425 -12.36
3,303,684
151.788 +25.56
1,822.527
3,180,060 -41.07
9,032,678
8,135,387
173,113
262,960
56.524 +51.71
249.970
153,165 -72.08
393.950
211.605
403,854
71.700 +19.11
655.255
3.959.530
524,135 -43.79
918.700
605.521 -67.94
738.479
1,239.257
133.434 -19.99
1,415,125
611.700
207,500 -1-23.54
443.700
3,824.500 -3.67
44,030.944
79.613.400
1.070.703
1.098.173
64.677 -13.16
781.040
2.005,440
186.626 -10.80
1,077.178
302.076 -29.57
1.423,498
607,136
745,456
153.142 -30.81
3,251,250
3.152.450
789.450 -49.00
287.273
295.500 -63.80
604.786
1.349.647
596.608
161.251 -36.31
1.262.780
1.861.455
245.270 -49.88
562.835 +236.25
2.302,112
3.546.830
1,362,678
776.374
62,487 +9.73
614.797
2.863.445
776,205 -85.16
759,874
586.728
177.700 +4.91
3.267,264
1,710.351
567,642 -5.59
537,560 -56.41
2.313.859
1.349.506
1.274.224
1.287.425
693,236 -76.52
,
4 -54.56
8,682,1
23.068.068
48.369.293
3.989.968
1.765.328
+60.18
260.95
1,212,630
3.073.680
1,526,560 -71.53
713.015
117,290
81.783 -29.89
418.830
698.792
367,667 -76.94
1.073,228
1.067.579
200.377 +15.64
2.064.747
1,017.577
494.237 -78.24
485,872
1.236.030
72,323 +337.82
1.290.706
339.519
72.018 -1.56
2.689,650
500.321
281,004 -21.26
2.215.078
706,881k
141.218 +6.54
2.081.064
1.249.225
586.42 -64.83
1.184.020
294,988 +93.30
771.825
32,334.512
12.173,501
4,066.20 -50.51
1.143,614
932.526
260.46
+00.54
1.589.314
1.205,878
323.075 +101.49
1.023.131
1,025.134
115.775 -44.22
290.584
1,021,570
249.71 -61.58
1,060,727
1,063,899
1.435,245
2,660.566
1.360.000
1,171,355
920,950
1,210.450
593.621
7.023,858
5.967.770
10.876,513
7.733.558
11.853.643
5,965,735
11.488.092
4,803.156
9,642.589
0,082,915
3.219.075
20.690,162
15,016,529
9.059,128
13.057.987
4.370,822
3.011,433
3,181,852
4,144.300
6,141.100
6.509,630
6,776,977
6.110,858
5.931.150
4,007,780
2.710.525
1,857.285
15.608,002
23.669.315
26,225,155
21.505.000
22.775.414
25,452.812
27,144.484
16,872.240
26.110,457
1,347.891
622.317
671.510
477.429
477,533
1,051,599
1,437,463
1,540.494
782,043
5,075,176
547,700
735,616
800.278
935.512
659,156
1.324.635
1.062,472
940.723
1.352.793
1,828.839
862.966
1.102.655
798,912
995.436
476.058
6,889,105
6,639,397
9.752.029
5.325,166
5.468.101
8.770.255
13,462.707
4,098.997
10,098.035
863,081
989.397
2.061.370
1.998.601
2.726.691
1.480.683
2.645,230
2,221.679
2,214.016
2.281.460
3,362,592
4,445,435
5,011.001
2,838,801
2.849.631
3,205.479
2.564.960
984.448
1.217,300
924,200
1.335.800
674,725
1.245.400
1.193.050
405,000
693.889
1,207.000
202.286.800 315,800.000 352,936,400 364,584,400 360.804.250 296.893.985 329.604.312 227,742,010 125,004.510
3.531.638
3.665.046
6.930,029
7495.470
5,319,927
4.605,481
7.946.621
3,890.490
4,169,345
5,266.352
4.366.100
5.500,640
5.786,465
2.014,070
2,033.790
2,818.660
2,733,266
2.471,731
5,234.863
4.449.576
5.600.364
3.293.348
2,811,799
2,647.665
1.445.825
2,291,046
1.383,474
2,729,080
2.700.000
1,839.343
1,600,000
1,512,000
13.178.225
14,007.420
8.196,300
10.219.604
15,825,670
16.017,225
11,610,066
4.014.613
7.546,133
1.123.183
1.988.650
1.606.750
900.000
1,012,200
1.011.420
860.750
1.710.027
2.195.290
970,476
1.358.966
1.082,101
1.131.981
1.102,265
2.500.000
2,047.005
5.720.965
9.290.495
9.080.676
9.754.942
8,070.447
6.469.614
10.091.738
8.378.238
6.538,860
3.579,455
3,951.126
3,409.575
5.685,410
5.565.553
4,797.843
3.512.874
3,824,739
2,497,817
834.315
2.276.957
1.215.785
1.327.518
1.105.021
1.503.692
1,222.909
731,530
289,150
5.085,592
5,714.017
6,475,700
4,102,985
5.537.603
6,563.723
3,750.695
3.528.095
1,998.645
1.124.099
2.251.454
1.311,765
1.221.082
2,269,402
1,036.046
998.516
3,163,586
3,787,348
5.626,011
4.271.526
3,841,173
5.466.438
3.921.012
4.179,575
2.338,805
7,242.183
4.463,105
3.442.187
3.130.881
4.208.403
1,968.142
1.763.500
1.166.627
1,813.221
964,475
921.059
611,624
1,660,948
811,479
100.542.497 129.260,285 145.555,647 183,721,438 180.132.528 160.064,794 129.719.731
94.615:093
55.634,988
14.571,741
14,412,630
13.028.751
22,087.451
9,171,457
7.277.891
8,172.548
6,714,910
3,205.110
8,230.285
6,230,215
8,222,090
12,473.770
11.336,035
9,536,200
10,204.79'
11.165,077
5.634,182
2,327,370
2,603,477
2,654.960
4,239,785
4,819,035
5.676.490
4.109.025
3,298,015
3,492,043
2,097.086
2,576.645
2,598,709
4.180.018
1.602.009
2,268.951
1,285,089
1,456.393
2,034,864
2.409.585
2,223.046
1.611.955
2,063,620
1,983.590
1.953,303
1,176,260
1.327.712
9,360,084
4.782.147
7,222,070
5,295,942
4,336,861
4,810,325
6,304,489
1,928,134
2,250.975
1,229.128
2,090.140
1,310.187
1,143,514
1.431.478
625.895
929.163
13.238,283
6.124,130
17.463,676
2,143,025
5,518,682
1,915,343
1.280.189
4,369,585
3.208.872
3.074,213
3,600,920
2.937,032
2,747.471
1,802,673
2,679.977
3,045.369
3.987,618
4.836,027
4,468,809
5,127.352
4,950,584
4.698.386
1.295,206
4.823,951
1,514.596
4,962,923
6,579,832
4.461.813
6,346,171
5,357,584
5,360,307
5,637.163
4,619.285
3,066,595
1.324.432
1.780.576
1,020,259
1,706.920
1,626.690
1,205.638
1,310.247
46,656,912
45,588,857
46.361,461
39,583,736
41,210,250
45,633.569
41,440.720
19,416,692
25.250.312
1.473.660
1.354,362
2.486,862
2,053,624
2,747.920
1.178,608
912,275
1,164.199
771.343
1.651,228
2,313,449
2.357,495
2,970,592
2,692,183
2,498,869
2.469,066
1,810,500
1.614,675
1.770.738
2,383,607
4,000,000
3,020.448
3.344,482
4.000.000
2.449.934
2.791.172
1,805,942
1,852.835
1,183.664
1,312,792
2.173.755
1.459,838
3,279.924
872.173
3,034.033
885,007
31,785,208
33.571.886
56,263,705 -43.51
59,390.236 -43.47
174.433.689
183,777,508
337.802.517
350,826.501
625.125.978
667.961,412
826,371.468
865.597.452
120.087
1,247,400
248.632
10.106.632
*30.000
1.015.846
104.468
2,537.360
5.309.187
80.342
280.038
1,097,556
97,396 +23.30
2,241,100 -44.34
147.185 +68.92
4,331,904 +133.31
20.585 +45.74
1,366,970 -25.69
398.973 -73.82
6.426.805 -60.52
3.064,037 +73.27
260.255 -69.13
296.156 -5.44
2.196.174 -50.02
523.175
5.720.950
454.406
16,619.836
62.500
991,637
238.481
12,371,660
13.994.545
107.080
1.585,864
3.914.556
858.665
15.942.375
1.628.830
17.347.865
153.000
2.212.396
623.216
13.449.340
11.084.281
478,578
1.492.634
5.035.825
599.429
15,468.750
1.464.391
27.330.623
100.000
3,727.371
290.601
20.960.135
9.205.574
337.868
2.560,098
5.554.497
1,453.711
15,826.900
2,004.618
42.813.495
132.330
3.311,265
594.027
23,257.725
8.737.665
550.306
3.221.608
9.050.410
21,886,309
377,267
628,194
1,092,272
3,482.919
35.677.417
37.782.500
11,244,500
6,342,675
2,021,625
2,078,555
1,866,320
999.905
691.340
928.444
351.950
1.707.631
13.511.740
6.008.084
532,995
19.652.285
443,295
458,492
961.483
3,599.275
35,759,430
54,592.425
15,239.250
10,358,378
757,457
2.067.079
5,112,497
1.802,040
1.355.860
1,575.101
1.027,600
1.667,598
17,146.961
8.628,040
383,710
20,967,461
541,279
514,537
1.208,794
4,105,598
31,842.334
45,480,550
22,282,600
10.432,026
1,358,018
1.888.306
3,518.525
1.790,855
649,622
2,578.721
587,092
1.744,823
16,587,388
9.300.315
*1.000,000
16,068,106
1,470,045
941,626
986.299
5,343.765
32.928.809
61,776.575
25,250,700
11,076,109
1,607,486
2.550,712
4.473.645
2,929,674
377.125
1,973,208
503.530
1.446.818
13,046,365
9.468,282
1.019.945
14,504.742
1,368,510
912.599
873.029
8.033.923
30,939.285
69.254,400
29.353.300
12.483,526
3.962,913
2,207,516
6.211,541
3,120,025
641.570
2.902.295
712,354
969,507
17,734,587
12,324.895
689.058
896.968,585 966,827,788 1,070,479,767
944.020.904 1.001.879.097 1,101,831,475
1.262.083
15.209.076
774,694
42.074.682
257.660
4.494.388
822,108
22.429,620
10.128,589
684.245
4.398.540
4.522.218
1,864,968
23,116,740
1.302,270
39.841.564
517.530
6.060.437
650.186
20,609.340
15.710,425
386.867
5.951.465
10.052.338
1,072,127
38,382.965
1,894,842
54,877.013
266.720
7,093.075
640,000
29.446.310
24.045.858
836,555
7.006.077
14.624.520
8,837.420
1.481,195
1,156,364
1,414,576
8.561.803
24.423.470
63.015.300
21.625.900
9,748.369
3,595.675
2,198,966
8,612,960
2.394,463
938.410
1.704.525
750.867
1.923,876
16,924,690
11.831.990
1.047.596
7.495,066
1.079,755
990.694
4,550,538
473,203
895,298
7,398,567
26,656,515
69,390.540
22.296,800
10,275.069
4.093.574
1,478.311
12.108.682
1,634.367
848,768
2,221.056
633.831
1,532,805
15,536,846
5.676,970
2.027.098
6,015,248
28.729,795
55,147,565
18.190.500
11,540.709
2,750.000
1,024.924
9,503.285
966,476
470.232
2.892,395
747.870
1.292.595
9,038.891
5.339.545
837.28
3.935,144
12,542,000
46,531.323
9.265.110
6.127.461
2.614,515
1,069.180
5.188.093
494.409
351.310
5.600.000
297.426
1,352.329
7.805.673
5.653,685
537,735
3,782.548
$
19.707.605
27,219.481
4,520,095
11.684.837
65.625.830
10,257,170
5,881.367
2,494.885
1.431.292
3.880.676
1.706.635
539.650
1.961.000
521,600
790,375
6.795,440
3,424,950
526.080
6.039.960
10,923.750
46,214.175
6,345,760
8,054,543
4,087,660
1,342,385
5,303,582
1.637.644
260.635
1,122,283
941.964
2.107.065
7.889.132
6,990.089
374.208
177.700
2,929.942
3.279,524
2,287,424
15.284.119
2.241.202
250,000
2.205.145
5.369,742
2,225.818
12,794.556
1.224.090
503.411
4,600.101
756.499
900.000
1.644.000
76 173.150
664.863
4.456.120
868.705
819,612
1.106.000
104.198.850
1.800,000
1,893.673
2,977-5:840
1.434,658
1,310.814
1,383.106
1,564.271
2,063.260
3,677.542
284.200
2,431.555
53,000
2.675.022
7,050,048
536.600
2.434.583
2.194.685
2.924.809
77,737.165
9,633.932
4.441.711
82,995,071
3,235,868
3.758,595
1,968,201
1,383.620
1.500.000
1,234,506
1.929.174
2.673.858
2,677,054
2.000.000
3.880,472
4.411.978
1.800.000
14,912,950
584,400
1.590.057
1.890.000
1.345.680
20,062,193
502.103
816,492
1,000,000
1.906,799
848,616.574
880.722.496
847.158.645
641.045,736
399,342.273
394.524,361
421,697,220
1.325.108
21.859.892
1,262.940
39,831.639
335.700
7,218.731
663,708
23.246.910
20.905.997
1.253,661
3.149.802
12.268.858
462,259
24.843,700
1,821.130
41,443,755
1,032,685
6,710.665
722.536
32.315.545
36,028.196
534.945
3,195,611
13.008.899
23,146,190
1,237.419
25,210,503
335.495
7,843,956
755.040
29,470.450
22,388,862
341.120
2.940,687
11.242.915
16.025,225
1,095,044
16,631.305
382.212
3.518,464
819,693
23,391,630
14,362,181
109,677
1.715.932
11.385.200
13,760.295
942.619
17.694.078
258.550
6.989,673
800,000
13,469,564
12.276,466
100.645
2,110,545
11.435.970
13,164,060
1.068.990
20.538,460
390,250
5,453.472
469,475
17.309.160
19,258.734
15.450
2,052,452
9.022.647
Le •uef
754,935
19,350
*26.000
83.945
101.635
5,301.921
2.748.000
824,200
487,481
29,374
64.509
185,435
146.923
68.699
117.225
24,963
57.480
379.155
546.114
21.225
1919.
17£61
Middle Western StatesOhio-Akron
Alliance
Ashtabula
Barberton
Canton
Cincinnati
Cleveland
Columbus
Dayton
East Cleveland
Hamilton_
Lakewood
Mansfield
Newark
Norwood
Sandusky
Springfield
Toledo
Youngstown
Zanesville
apyrazu lepueuu
1933.
Other Western States - (Con.) $
Ilan.-Atchison
23.250
Kansas City
181.442
Leavenworth
98.975
Topeka
18,840
Wichita
350.902
Iowa-Cedar Rapids
Council Bluffs
Davenport
Des Moines
Dubuque
Ottumwa
Sioux City
Waterloo
1932.
205,760
132.505
2,166,491
73,319
1931.
1930
1929.
1928.
1027.
1926.
1925.
1924.
1923.
1922.
1921.
1920.
1919.
$
100,610
647,147
116,340
2.126,088
2,340,208
3
251.025
1.353.858
320,850
2.388.881
6,276.230
$
317,495
1.768.453
100.000
1,718.492
8,651.582
$
462.299
1,634,322
*100.000
1,912.616
7,794,221
S
315.886
1,296,099
125.600
2.033,405
5.848,942
$
276,848
2.638,674
247,950
3,603.705
5,184,105
$
641,080
3.659,450
382,110
3.176.362
4,694,485
3
200.054
4,193,987
182,555
2,571.173
4.293.153
3
348,063
5,235.140
250.000
4,810.407
6.511.949
$
1,456,861
3,056.563
250.000
2,441.128
5.937.514
$
1,201.568
1.932.490
348.700
1,355.131
7.432.687
3
535,412
1.280,285
186.000
1.658,094
3,807.281
3
101,083
1,665,232
71,450
1,432,295
4,849.831
-4.65
-49.33
-40.32
-60.57
-47.27
-64.92
-68.04
-9.20
1,610.691
437.800
1.201.345
2.985,872
504.251
606,980
1,571.425
793,593
2.032,388
776.450
2,451,802
4,078,984
1.546,355
545.325
3,411,875
1.191,575
2,905.969
676.950
2.357,166
4.084.303
1.049.731
776,825
3.130.368
1,989,049
2,438.280
810,250
1,390,709
4,519.984
1.046.585
393.775
2.170.440
2,722,194
2,602.622
930.250
2.299.450
2,837,037
1,288,207
579.900
1,867,575
1.088,981
6.219.713
2.002.250
1,463.764
5,918,385
914.980
665,690
4,265,356
1,536,400
3.624.186
1.782.425
2.056.038
6,183,730
1,196.564
783.415
3,611,830
879.945
2.986.857
1.421,400
1,909,847
9,219.980
1.610.758
1,096.461
4,596.058
1,138,739
3,846,808
2,711,189
3,571.476
8,330.496
1.807,908
629,208
3,328,045
2.103,483
3,358.727
1,637.714
3,287.219
12,467.820
2,926,057
720.818
3,303,883
2,744.505
2.310.335
1.697.675
3,430,990
1.326.057
634,602
3,480,805
2.203,892
750,000
1.997.327
4,091,229
750.750
723,920
4,896,510
2.142,000
600.000
2,648.589
5,221.885
1,132,859
1.250,000
7.028,328
+59.07
-48.32
-32.60
-43.27
136.135
387,963
7.127,490
453.425
271.684
926.322
8,007.100
537.206
216.510
1.030.026
16,633,600
1.572.521
326.475
812.495
15,958.400
1,468.012
416.930
577.398
15,902.650
1.625.382
346,710
777.361
14,591,000
1.246,041
552,635
1,072.688
25,333,310
2,342,200
544,885
1,297.290
26.310,250
1.685.654
931,565
1.912.323
20,642,250
898,188
868,972
1.199,677
18.016.095
1,215.661
542.090
594,810
10,137.225
1.165,656
300,883
823.866
7.547.020
739.269
502,680
325,145
6.779,880
676,300
$
%
24,734 -6.00
297,799 -39.07
247.100 -59.95
20.195 -6.71
1.180.008 -70.28
416,047
436.358
193.642
382.153
427.878
716.954
745,284
1,890.001
281.467 .
533.761
276,750
788.950
373,139
1.167,665
265,117
291.985
,Dolo.-Boulder
Colorado Springs
Denver
Pueblo
Inc. or
Dec.
129,350
256,373
3.214,363
129.243
So. Dak.-Aberdeen
Sioux Falls
48.699
256,857
170,466 -71.43
561,512 -54.25
395.415
2.151,930
284.255
2.034,768
• 348,532
1,470,840
505.751
2,009,125
1,186,944
2.042.505
1.241.163
1.931,614
293,925
2.048,181
176,965
1.392.038
182.435
1,768,328
1,727,789
1,236,211
2,034.211
2.226.747
No. Dak.-Fargo
Grand Forks
Minot
82.725
42.402
127.040
218,111 -61.72
102,304 -58.55
58,400 +117.53
569.848
476.931
302,170
1.625.866
262.829
915,435
1.927.475
754,812
1,791,720
1,310.372
1,186,825
2,413.000
1,656.353
736,519
778.765
2.161.113
1.048,395
810.265
1,314.009
522,303
285,000
530.257
305,516
300.000
1,647,693
384,679
250.000
1,574,954
503.585
250.000
1.830,330
133.189
400,000
2.124.765
300.000
188.275
1,310,410
200,000
347,224
Utah-Logan
Ogden
Salt Lake City
42,821
351.451
568,434
54.150 -20.92
119.005 +195.32
+7.69
527.826
96,890
250.890
3,396,785
282,985
579.760
4,275,493
355,000
700,695
5.670.891
372,502
1,348.225
5,361.376
589.400
1.005.260
4,975.690
350,600
1.438,050
5.601,794
233,100
2.397.985
6,603,235
193.800
1,823,750
5.433.375
229.700
1.551,920
6.886,494
338,400
1,019.223
4.351.133
473,600
1.177,102
3.436,985
299,900
1.081.935
3,939,353
338,100
1.562,560
4.059,320
Montana--Bi1l1ngs
Butte
Great Falls
89.405
96.080
131,685
256.728 -65.18
*30,000 +220.27
982,130 -86.59
565,810
79,933
992.820
482.075
412.584
1,286,152
563.700
539,177
3.483,538
285,600
365,419
2.865,593
304.400
492,000
1,188,310
284,500
349.631
615.811
157,993
168.317
546,270
250.000
379,250
283.592
237,8.50
670,887
381.486
459.000
314,091
251.500
794.000
102,342
200,975
532,600
227,437
578.047
716,727
1.151.770
klabo-Boise
219,526
262,667 -18.42
757,478
782.915
971,180
693,408
1,263.592
648,424
890.000
717,007
734.131
615.799
550,000
860,495
1,300.000
Wyo.-Cheyenne
Sheridan
8.riz.-Phoenix
Tucson
47.243
25,000
330.319
259,808
70.950
*30,000
392,411
351.106
-33.41
-16.67
-15.82
-26.00
447.516
65,969
2,125,343
1,228.570
635,966
122,512
3,001,066
2,066,345
805.428
104,205
5,248.674
3,449,442
1,246,649
359,425
5.999,465
2,909,210
726.659
500.000
5,652.115
2.263,057
644.765
400.000
2,637,125
1.796,604
504.597
371.281
3,106,122
1,345.858
479.964
395.862
1,903,649
1,425.984
1,032.228
584,871
1.841,244
1,432.096
1.287,256
227.887
1,815,341
1,073,276
684,581
416.727
1.803.171
1,097.704
1,169.177
219.387
4,514.501
1.192,155
2.203.865
1,040.339
30,693,948
31,127.851
35,789.405 -14.24
36,740,298
15.28
91,944.168
93,656,351
123,389.424
125.723,919
161,826.676
164,783,686
181,465,406
186.147.062
169,493.936
174,055.786
195,995,885
199.922.916
261,123,821
262.297.691
213,060,415
214.574,119
247.518.548
249,804.466
202,866,560
144.108.806
131,292.381
141.837,769
247,955
281,576
182,473
760,173
1,797,892
443.703
16,575
416.649
42,088
117.854
518.511
57,305
740.535
467.656
6,452.960
15,283,216
50,938
2,050,116
42.088
29,700
993,671
184,727
159.506
186,545
103.948
383.453
1,365.988
143.521
1.819354
56,448,751
74.010
1,061,870
388,369
172,275
487,621
214,518
301,535
837.811
125.247
780.595 -68.24
25.01
375,475
289,291 -36.93
940.029 -19.13
1.135.669 +58.31
159.146 +71.22
23,400
29.17
192,313 +116.65
55.803 -24.57
89,603 +31.53
791,617 -34.50
84,540 -32.22
1,247,595 -40.64
239.920 +94.92
2.716.760 +137.52
17,506,606 -12.70
36,838 +38.28
2,388.773 -14.18
59.280
29.00
47.284 -37.19
1,219,653 -18.53
121.115 +52.52
469.553 -66.03
154.165 +21.00
150.494 -30.92
294,576 +30.17
2.375,253 -42.49
199.449 -28.04
2,137,011 -14.87
16,427,915 +243.61
109.525 -32.43
1,033.810
+2.71
+8.85
354.958
188,141 -8.43
541.144 -9.89
169.960 +26.22
1.394,132 -78.37
787.898 -19.04
242.278 -48.30
674,547
1,171,450
685,944
1.598,416
3,275,899
684,470
64.200
379.248
278,270
208.618
1.028,899
129,716
2,901,545
553,730
4.590,795
41,210.860
89,484
7.415.159
418.590
233.384
4,053.183
360.138
1,169,644
714,934
515,435
672,319
3,687,076
643,502
5,259.224
21,372,550
334.013
1,776,090
1.266,045
206,535
1,637.042
476,620
1,295,371
102,690
430.447
979.264
1,115,855
1.487,310
2,986,989
5,865.990
746.122
118,250
979,550
283.850
660,116
1,339,321
382.846
3,409,701
1.588.528
13,480,380
74,088,825
107,769
9,284,758
671,920
203.927
6,040.751
696.838
1,254,840
869,727
525,782
1.665.878
3,062.373
1,852,646
5.393,252
22.726.994
412,336
3,417,200
1.475,545
592.178
2.400,541
1,334.158
1,315,643
920,387
885.551
1,404.416
2,513,501
1,580.216
4,732.846
8,116.042
1.505,973
142.300
1,167,371
521.170
765.773
1,698,846
850,518
5.456,149
2.370,950
18,149,585
93.016,160
251.248
14.317,428
481.360
324,775
6.991.199
1.231,143
1,083,140
722,879
628,300
1,484,423
4.409.244
2,386.901
12.149,167
33.682,025
495.790
2.468,155
1,807.396
396,995
2.987.104
2,663.380
1.444.054
606,418
1.421.016
2.131,396
2078,295
1.471.239
6.076,626
6,060.442
1,476,032
191.425
1,341.671
710,792
495,480
1.771.219
780.870
7,465.265
2,708,502
16,366.835
101,678.768
187.805
1,136.091
715,796
629.300
5.949.553
1,134,489
1,912,105
1,082,139
933,145
2.008,150
5,559,417
2,822.745
12,372,600
37.766,363
540,732
2.541,110
1,584,402
424,324
3.934,692
2,638.831
1.798.838
1.668.979
1.504.592
1.537,424
2.422.862
1.994.491
6,687,233
7,212.766
1.732,437
307,750
814.918
298.104
364.926
2.690.978
832,593
8,246,150
1.584.134
13,706,145
123.027.239
392.990
20.794,66i
674,581
202,220
9.019.866
1.330,620
1,481,899
715,636
1.203.320
3.141,555
7.968.182
3.452.706
14.251,966
47.032.848
505,524
3.564.480
1.154.035
365,112
4.392.459
1.904.154
2.824.193
2.119,923
1.122,412
2.238.799
3,119,574
2,095,215
7,337,076
11.001,877
1.912,647
303,685
1,503,188
577,163
444.663
1,819.985
498,961
10.027.798
1.429,713
8.615,720
123,006,215
386.965
28,0/5.295
1,057.890
296.000
9.667.900
1,430.638
980,380
1,061.907
2,976,552
2.309,842
7.732.573
3.530,193
20.001.729
57.953.948
1,096,420
4.378.940
2,028.019
512,124
7,517,422
1,583,650
2,749,564
457.788
923,571
4.127,301
3,395,922
2,117.938
10,058,730
10,566,818
2,109.141
250.640
1,566.271
589,018
1,133,355
3.093,062
592,986
10,224,020
1,263.410
19.046.766
152.636.436
379,805
39.185.863
877.718
507,525
9,633.746
1,918,009
1.116,348
921,467
1,312,822
2,262,537
11,351.277
3.255.214
18.198.200
50.392.793
632,512
4.846,775
1,359,479
727.09.5
5.138,292
844.196
3.728.712
357.643
2.157.329
2,562,008
5,398,490
1,096,452
9,369.027
5.053.644
2.592.314
326.875
1.164,862
1,146,095
820,363
1.645.488
1,079.240
10.175,311
2,184 441
20,601,267
150.147,516
420.420
31,223,433
797.604
550,650
12.040,719
1.517,079
1,586,098
1,103,441
970.211
2.041.229
7.666,669
3.762,123
13.561,106
57.8.52.973
621.145
3,959,075
1.595.688
555,835
8,415,136
1.135.122
4.163.012
1.092.280
3.100.632
1,676,088
7,231,330
1,169,573
7,959,140
3.891.136
1.969.682
366.368
1,081,492
875,453
866,030
5.890,104
2,087.186
10.047.694
2,701.727
23,697,830
200333,181
379,825
27.628,175
1.193.512
868,350
11.534,186
1,877321
1,693,821
1,196,086
1,147,664
2.511,712
9.699.638
2,343,617
12,102,426
46,676,079
654,300
2.731.630
1,411,218
490.300
6,045,254
792,770
3.897.130
1.873.295
Total other Western:
42 cities
45 cities
Pacific States)alit.-Alameda
Alhambra
Bakersfield
Berkeley
Beverly Hills
Burlingame
Colton
Compton
Emeryville
Eureka
Fresno
Fullerton
Glendale
liuntington Park
Long Beach
Los Angeles
National City
Oakland
Ontario
Orange
Pasadena
Piedmont
Pomona
Redwood City
Richmond
Riverside
Sacramento
3an Bernardino
San Diego
San Francisco
San Gabriel
San Jose
San Mateo
San Rafael
Santa Monica
South Gate
Stockton
Torrance
Venice
--
210.000
971.170
759,931
802,482
467.171
1.898,688
5,622.963
1.838,994
2.198,869
1.483.794
3.376,409
787,729
796,492
1,314,979
3.113,364
513,441
422.672
838,758
1.641,139
304.900
194.256
280,307
100,870
522,000
657.451
7,495.840
2,034,526
6,305,971
3,860.967
951,941
5.099.201
6,775.587
759,348
3,137.264
3,996,875
528.609
591.439
14.044,518
121.206.787
284,190
24,468,223
13.159,243
82.761,386
262,585
15.791,616
11.001,662
60.023,600
111,628
9,489.906
7,217.849
28,253,619
50,635
7.134,572
924,412
9,420,481
1,430.415
1.114.447
382.398
6,493,674
867.715
904,026
3,534.235
794,510
801.437
1,821,600
355.869
897,072
414,237
763,390
1.458.429
879,480
779.360
9,351,052
3.853.084
3,449,388
2.209,663
1.019.560
596,650
12,004.036
10.547,853
5.671.798
45.327,206
22,244.672
26.729.992
354,846
357,495
112.514
1,235,349
1.960.548
1,750,046
219,800--- ---257.400
117.500
3.878.365
2.504.100
1.219.359
593.594
336.935
2.054.843
296.534
2,856.015
15.163,242
53,297
1,067.841
3,141,900
333.680
1.712.738
2.617.527
112.200
393,352
1.477,841
aiagranio lepizetzu
1933.
Sirr OU212104
UNITED STATES BUILDING OPERATIONS-(Continued).
Cri
0.2
UNITED STATES BUILDING OPERATIONS-(Continued).
1932.
$
55.702
104.238
2,380.440
181.907
$
.74
81.600
139.400 -25.22
4,827.230 -50.69
204.384 -11.00
$
549.143
447.943
5,977.625
325.765
95.001
1.206.727
12,063.580
529.406
Wash.-Aberdeen
Hoquiam
Seattle
Spokane
Tacoma
Vancouver
Walla Walla
Yakima
38.976
8,652
1,934.150
622.180
695.665
31,259
57.357
88,440
34.694
18.980
4,022,084
572.801
740.990
83,176
76,056
142.099
+12.34
-54.42
-51.91
+8.62
--(LH
--62.41
-24.59
-37.76
67.213
136.684
9,415.600
2.088.970
2,154,325
179.636
135.910
1.806,085
Total Pacific:
36 cities
50 cities
98.403,767
101.449.449
65.543.132 +50.14
68.475.061 +48.15
Southern States.Va.-Lynchburg
Newport News
Norfolk
Petersburg
Richmond
Roanoke
-A
1931.
1930.
1929.
1928.
1927.
1926.
1925.
1924.
1923.
$
1922.
$
1921.
$
1920.
$
1919.
5
$
93,153
1,759.810
15,493.310
1,359.175
$
162,900
951.896
21.275.970
1,605,643
$
157.414
1.920,334
28,973,455
2.626,427
$
278,150
2.437.583
32,588,975
2,904.104
$
903,000
1.639.147
38.476.335
1,794.935
$
1.357,440
1.682,779
29,219,425
1.731.210
379.333
25,247.135
1.287,282
800,000
20,939.650
693,678
800.000
17,225,576
343,570
393.470
128.052
30.843.465
3.640.843
4.571.470
230.643
403.542
1.648,185
838.479
477.793
29.104.775
4,149.210
4.751,231
487,196
282.741
1,242.895
706.651
753.257
34,813,200
5,736.778
4,622,765
1,563,583
683,943
1,118,645
992.202
1,420,538
29.070,080
3,656.499
5,391,113
1,342,122
364,480
862,165
1,451,233
530.358
34.207.700
4,191.223
7,121,632
865,012
479,631
1.190.696
1,279.021
457.255
30.626.995
4,366,856
9,926,134
401.708
309,098
821,037
869,334
374.341
27.279.500
3,296.388
8,539.035
443,606
160,558
730.401
1,144.348
608,457
22,974,720
2,486,563
5,500,926
628,425
419,834
729.733
437.111
230.864
19,783,835
3,177.234
4,239.028
221,414
515.500
245,445
189.292
385,059
12,862.425
2,124,037
3,669.082
297,846
311.834
13,760,090
3,031,704
4.749,673
412,709
797.730
15,615.010
1,689,928
2,857,181
370.423
128,572,497
136.850.981
219.887.450
231.878,275
281.968.939
298,445,124
297,593.222
315,638,139
363,003,009
376,710,783
403.667.192
419,876.044
455,799,907
472,616.154
427,005,231
448,745,841
448,366,999
330,768,325
219,483.882
182,358,123
109,028,877
s
756,150
12,088.506
425.990
9,840.725
140,050
567.549
223.142
822,151
17,588
1,024.615
404,766
936.288
277.788
1,219,384
38,848
1.095.951
387,768
-39.38
-19.67
-32.57
-54.73
-6.51
+4.38
880.112
772.785
1,589,299
137,818
3,046,948
1,284,436
1.697.231
1.317.915
2.641.117
212.807
5,896.468
2.768.955
1,032,192
814,627
2,792,217
437.723
9,154,225
2,406.923
1.113.956
829.705
3,891,511
539,211
8,844,881
3.353.198
1.561,143
791.279
3,411.815
270.169
9.780,943
2,598,545
1,046.557
380.925
2.811.070
315.877
10.024,874
4,568.594
1.291.924
261.396
2,966.747
594.256
13,398,246
3.425.275
1,612,519
174.847
6.938.422
258,816
13,613,019
4.167.068
859.885
244.095
5,365,021
413.233
15,642,229
4,073.597
948.065
642.467
5,169.533
499.000
559.038
5,030,168
822.610
701.245
9,632,053
7,852.944
15.116.912
3.259.524
9.292.879
2,285,899
4.778.756
1,221.285
8,770.452
1.106.035
N.0.-Asheville
Charlotte
Durham
Greensboro
Raleigh
WilmWgton
Winston-Salem
165.242
726.978
812,523
267.918
144.248
*50.000
245.964
101.468
602.567
385.985
205.247
132.330
136.000
403.021
+62.85
+20.64
+110.51
+30.53
+9.01
-63.23
-38.98
240,083
1.275.290
714,880
1,111.126
575,752
475,350
853.987
466.089
2.607.313
1,013.155
766,985
671.462
828.650
1.602.428
2,260,712
3,867,705
1.924.437
3.133.865
1.472.166
568.900
5.000,165
3,110.001
7,294,038
9.905.838
5,048.295
3,864.573
624,150
8.531.028
6,002,647
4.861.761
2.586.754
4,837.830
3,706,969
461,700
6,539.187
9.299.545
7.336.980
3.371.004
6.362,118
3,252,564
1,088,550
5,581.331
6.010.919
7.244.193
5.174.525
6,192.150
2,904.452
572,475
5.004.382
4.289.291
6,827.433
3,097,955
4,342.242
4,653.124
1,605.600
4.524.124
4.565.489
5.265.340
1,395,600
3.522.715
3.776,421
1,967.700
4,260.28.5
3.190,777
5.032.455
1.207.387
4.223.179
3,038.572
918.000
3,286.864
1,980.120
2,353.808
1,413.706
1,944.083
2,284.835
892.700
2.426.467
1,411.156
2.589,110
1.438,422
1.090.397
822.012
1.388.900
3,259.495
850,755
1.196,004
615.345
973.935
402.824
1,003,550
1,200.000
S.0.-Charleston
Columbia
Greenville
129.184
143.403
146,320
238,112 -45.75
582.209 -75.37
174,275 -16.04
407.718
1,095,859
492,348
936,647
1.872,395
1.025.934
685,620
1,283.835
1,182,278
565.609
1,626.576
1.442.928
584.169
1.561,400
1.119,995
508.205
1,490.484
912.735
633.155
1.554.690
1.495.320
235.432
1,266.316
2,560.803
1,547,238
1.330,561
1,277.541
2,507.847
1,583.993
1,242,277
1,368.294
1.570.870
1,326.610
3.290,023
1,151.937
2.105.410
938.398
1,442.775
597,300
Ga.-Atlanta
Augusta
Macon
Savannah
854.535
361.539
414,502
251.171
1,896,465 -54.94
394,255 -8.30
647.712 -36.01
134.405 +86.87
3.402.110
350.928
893,384
412,631
8.924.099
764.542
1.210.683
540.185
13,212,611
1,192,345
1.020,066
2.170,229
27,580,541
1.487,312
2,371,852
1.122.012
12,081.122
1.470.847
2,895,871
2,180.050
17.789.363
1,135.609
1,757,649
3,143.462
10,403.558
1,535.949
1.745,026
1,595.830
18,196,091
1.175.353
1,762.647
2,264.349
27,094.912
1,234.780
1,502.882
1.509.534
20.584.754
2,398.126
1.579.313
1.306.740
11,236,776
76.993
930,136
2.055.059
13,372.666
1,873,582
1.430,798
4.025,000
10,442.739
1,307.779
1,192.163
1,770.645
2.871.689
1,067,427
159.126
367.186
273.700
438.992
-42.24
+69.23
+128.10
+00.26
+43.09
-5.57
1,728.200
2,079,347
203.835
1.014.914
672.650
741.933
1.594.351
2,159.496
343.835
641,483
797,525
1.293.961
4,824,332
3.911,750
597.985
500,000
1,445.900
1,917,807
7.905.762
2.171.847
1,239.576
1.025.260
1.846,100
3,643,259
13,051,074
9,964,877
1,973.587
1,486,692
2,907,400
5,732,606
21,393.945
35,845.109
8,288.359
1,691.352
15,580.200
15.872.772
14,760,711
60.026.260
7,993.658
754,415
24.081,700
23.418.836
7.311,497
17,038,144
3,036.006
1,300.446
9.557,500
6,577,055
7.536,557
7,228.569
3,271.749
643.468
7.124.560
3.516.773
5,831.078
4.647.744
5,087.337
5.415.800
3.466.405
4.476.760
1.156.260
3.264,215
364,379
4.167.985
3,091.780
1.116.100
4.608.820
4,057.028
437.313
2,801.120
2.664.392
1,096.607
1.200.000
1,202.534
Fla.-JacksonvilleMiami
Orlando
Pensacola
St. Petersburg
Tampa
1,658.661
1,806.379
362.982
368.089
391.650
414.524
Ala.-Birmingham
Mobile
Montgomery
504993
86.060
347.835
763.940 -22.11
107,479 -19.93
1,128.459 -69.18
2.314,302
17.122
819.750
3.185.698
1.084.670
1.274.082
10,401.370
1,643,939
2,756,481
18.641.006
3,200,788
3.331.900
22,862.303
2,240,814
2,525,947
22,263.116
1.777.899
1.575,529
21.464,878
1,964.264
1.011,576
20,247.707
1,299,780
704,100
12.166.996
1,149,430
883.457
7,491.020
1,169.679
513,644
6,556,101
600,000
513.644
4,384.229
603.473
600.000
3,929.822
660.454
590.617
Miss.-Jackson
Vicksburg
478.920
58.320
138.416 +246.00
61.073 -4.51
478,586
72,976
2.985.334
191.675
3.970,489
522.445
2,603.097
1,049.287
2,805,818
486,886
3,045.285
392.421
2,171.271
546.000
1.850.573
700.436
2,700.000
526.518
1.182.550
479,852
329.556
78.377
455.395
183.608
316,963
136.329
La.-Alexandria
Lake Charles
New Orleans
Shreveport
226,652
111.500
1,054,840
441.201
428.212 -47.07
*150,000 -25.67
3,197,238 -67.00
458,034 -3.68
354,785
244.000
5,529.626
937.141
560.731
401.434
6.183.082
1,559.716
756,071
423,344
11.974.529
3,457.915
628.892
1,307,377
11.899,011
4.916.680
1,140.782
719,657
16.117.C55
3,977.680
999.570
1,170.424
18,789.444
5.421.768
1,926,155
647,422
16.345.140
5.491,818
1,159.653
231.754
16.991.150
8,069.000
1.028.133
187.783
13.089.015
9.467.382
886,892
326.333
10.495.460
6.070.084
860.575
284,277
8,043,159
3.871.485
905.922
452.730
12.598,468
5.717.419
1.120.230
569.300
5.249.092
3.557.346
Texas-Amarillo
Beaumont
Dallas
El Paso
Ft. Worth
Galveston
Houston
San Antonio
Wichita Falls
208,999
278.616
109.039
248.666
2,710,085
470.069
3,334.800
1,007.217
90,630
-86.07
-65.04
-95.36
-31.82
+88.95
-53.91
+16.03
-34.41
-87.40
2,737.571
1.115,552
7.190.944
961,756
6,316.346
2,542.275
11,900.170
3,281.864
150.568
1,843.145
2.666.354
11,135.911
2,953.770
10,096.821
1,796.860
17,264.993
8.511.555
1.104.822
1,845.021
2,659.321
9.548.889
4,378.799
11,324.845
3,658.967
29,526,810
3.111,385
1,337.338
2.906.174
4.355.392
8.232.384
2,050.183
13,222.147
2.731.310
35.319.503
16.408.035
1,911,612
10,491.884
4,946.486
9.874,846
1.308,991
17,111,480
2.977.728
27.326.475
13,987,847
4.050.687
16.476.528
2,451,961
16,133.426
1.163.657
17,022,468
3,213,095
28.512,805
14.462,952
10,022.263
3,436,953
1.638.870
28,379.558
2,184,332
8,872.323
1.707.439
35.040,010
9,428.043
5.098.866
1,550,582
2,540.373
26,402.814
1,605.257
11.408.208
2.605.205
17,222.059
6.603.860
2.343.713
1,309,615
2.689.371
20.988.469
2,101,980
8,395.264
1,889.851
19.117.106
8.053,266
1.747.767
1,530,748
18,646.988
3.070.266
12,128,722
2.121,168
12.489,469
7.234.303
1,296.788
2,374,260
15,000.205
4,279.932
4,602.962
1.963.919
10.398.795
7.515.045
330.000
1.634,885
13.595.157
3.296.579
10,373.229
672.783
8.529.247
4.711.212
2.332,000
900,000
13.164,600
2,255,585
18,657,654
632,178
6,861,619
3.987.305
Ark.-E1 Dorado
Fort Smith
Little Rock
36,161
95.012
145,026
27.077 +33.55
170.600 -44.31
229.746 -36.88
21.980
231.749
1.666.107
102,000
426.805
2.125.705
*700,000
1,199.946
3,267.187
2.201,184
1,618,704
4,261.359
734.691
1.088.517
2,993,636
1.925.763
1.310.921
5.968.226
2.024,415
1,075,595
5.107.847
850.757
1.067.246
4.331.396
2.387,519
1,506.884
3.843.204
1.349.758
3,908.781
993.396
3.620.638
1,071.178
3,727.732
784.223
2.601,768
*1,500.000
298,000
2,352.162
364.712
1,434.299
1,019.876
2,874.040
1,535.807
719.113
Okla.-Guthrie
Muskogee
Okmulgee
Oklahoma City
Tulsa
42.256
*60.000
11,875
1,254.293
515.059
25.628
*40.000
*7.000
1.596.418
510,802
+64.88
+50.00
+69.64
-21.43
+00.83
41,297
80,495
9,941
13,355.821
4,605.930
169.618
578.554
39.540
20.604.772
8.166.839
204.178
463.099
200,000
24,374,100
17.481,592
239.457
565.565
252.965
18,128.653
13.553,351
436.047
835,817
262.350
16.238.714
14,840,254
900.000
390.427
560.881
10.028.228
7,615.428
981.005
701,217
321.470
6.751,775
10.075.971
3.000.000
401.444
326.355
8,052.935
8.048.283
3,000.000
1.303,316
1.027,050
7,948,577
7,780.252
3,000.000
2,830,148
1.215.775
7.698,106
13.636.489
3.000.000
1,119.475
1,662.825
7,794.797
7.330.340
2,678.729
1,193.714
2.452.900
6,007.798
9.648.547
764.847
.331,975
9,030.640
9.474.443
Tenn.-Chattanooga
Knoxville
Memphis_
Nashville
636.631
489.769
226.525
1,804.299
1,369.685
1.373.370
1,975.090
1.147.845
-53.52
-64.34
-88.53
+57.19
1.258.357
1.052.664
3,479.635
4,846.035
3.021.336
2,683.118
9.921.132
5.443.874
2,520.970
5.554.230
8,216.277
5.669.001
4,919,768
7.122,657
15.451.573
*5.500,000
4,975,169
5.708,582
15.004,642
5.529.435
6.016.569
10.730.451
18,579.260
3223.829
5,154.558
6,329.396
18,667,605
7.012.768
2.915.924
6.512,411
23.757.040
5.148.098
2.943,697
6,587.810
20.998.38.0
9.670.4511
2.552.698
5,042.172
20,883.008
5.259.908
2.476.129
2,665.411
9,377.025
3.342,359
2.983,320
2,429.041
6,715,183
2.182.383
1.600,118
2.654,211i
7.518.950
2.632.338
FP,
0131110N3 fErLIBULd
1933.
frE6I LO 'riei
Inc. or
Dec.
_
Pacific States (Con)Ore.-Astoria
Klamath
Portland
Salem_
S
Z 166.500
330,364
1.640.165
23.999
$
197.139
898,141
2,093.388
*50.000
%
-15.54
-61.98
-21.65
-52.00
1931.
$
755,251
342.342
5,465,910
*100,000
1930.
$
652,850
1.295,361
6.845,650
*150,000
1929.
$
1.447.125
2.117,697
13,427.910
250,000
1928.
i
1,581,750
1,961,994
18,081.575
357,350
1927.
$
1,650.400
2,353,635
23,243,210
379,250
1926.
$
2,145,300
2,110.131
20,919,545
464.100
1925.
$
2,254,100
1,892.630
29,910,246
275.745
1924.
$
1,613.550
1.744,326
22.682,959
314,090
1923.
1922.
16
1.709.375
1,955.432
17,024,651
S
2,135,000
2,231,141
16,736,750
1921.
1920.
$
la
1.297,000
1,274.723
7,428,300
533.000
2.082,390
8.622,152
1919.
$
500.815
1,071.150
4.140.714
Total Southern:
43,635,936 -27.92 105,936,340 178,971,731 255,371,156 334,248,207 331.103.187 411.381.352 437,154,886 334.085,044 302,557,391 270,953,131 190.797,233 192,924,005 158,918,200
31,452,270
55 cities
45,410,987 -29.29 110,732.571 181,623.518 259,201,885 341.491.702 345.439,047 439,232.903 451,741,309 340,270.142
32,111,999
60 cities
Total:
355.369.833 409,093,556 -13.13 1,184,452.740 1,734,302,962 3,016.857.906 3.401.501,7923.541.388.042 4,008,309.244 4,302.696,723 3,614,662,440 3,449,465,740 2,807,884,753 1,869,694,975 1,634,378.397 1,515,054,225
310 cities
362,954.062 420.526.396 -13.69 1,220,779.503 1.776.623.053 3,096,839,460 3.500.730,450 3.651.036.270 4.121,964,853 4.393.364,166 3,702.135,335
354 cities
Outside New York:
277,014.586 331,190,837 -16.36 835,170,131 1.327,235,292 2,056,766.163 2.463.864,653 2.660.641.629 2.948.257.8503.294.125.381 2,768.156,623 2.663,907,795 2.169,314,914 1.393.407.781 1.343.549,455 1,253,554,036
309 cities
284,598,815 342,623,677 -16.94 871.496,894 1.369,555,384 2,136.747,717 2,563.093.311 2,770.289.853 3,061,913,459 3,384.792,814 2.855,629,518
353 cities
THE DOMINION OF CAN A DAEastern Canada21.310,472
22,335.796
14,067.609
12,743,480
45,183.317
25,520.523
31,013,419
27.092,468
31,700,549
46,086,383
36,304,181
31,873,676
37,504,590
10,428,631 -45.74
5.658,852
• Quebec-Montreal
1.297,115
838,225
2.718.930
400,000
2,203,250
3.408.500
2,543.575
2,772,200
3.375,950
2,163,150
4.887,100
272,950 -41.22
790,750
1,481,600
160,450
Outremiont
3.236,291
3.693.397
2,301,480
2.134,219
6,360,165
4,786,933
3,939.281
3,274,371
7.332,846
5,684.183
4,049,875
4,912.257
1.179,465 -38.57
724.548
Quebec
732,000
335,000
3,265,538
872,150
689,930
722,100
1.101.233
714,250
1,038 060
524,925
757.640
676.350
812,150
343.253
305,900 +12.21
Sherbrooke
1.292.800
1,200.000
857.700
1,300.000
2.332,500
730,745
1.681,450
1,445,575
2,064.814
1,046.200
1.488,065
242.030
851,703
28.588
107,575 -73.42
Three Rivers
1 609 413
1 592 000
1,179,800
883.121
3,616,132
3,560,797
2,931.529
2,381.606
1 933 232
2,904,524
3,220,145
705,188
2.207,501
244,116
286,370 -14.76
West Mount
115 524
286 825
255 400
177,250
176,800
670,010
194 725
195 000
248,323
306.610
533,730
221.900
187.360
29,700
100,705 -70.51
Ont.-Belleville
571,599
615,686
465.421
388,450
798,223
1.173.580
802.528
232,754
159.537
189,980
473,387
506,677
1.034,957
170.844 +00.55
171,783
Brantford
375,050
28,500
2,100
57,150
188,900
350,000
400.000
372,000
150,000
140.600
452,200
76.060
327,635
41,140
87,545 -53.01
Brockville
366.317
800,000
709,437
326,547
595,087
265,867
707.266
591,750
193,858
355,329
813,550
150,865
821,258
98,588
64,480 +80.96
Chatham
1.425,130
1.466,685
913,050
1,045.160
627,930
2,062.000
1,209,450
730,340
1,272.570
1,291,250
1,759,000
1,227,300
451,000
213,400
294,100
-27.44
William
Fort
731,706
450,000
291.760
330.101
197,513
124,742
135,631
378,581
108,723
108 723
527.315
239.021
264,899
101.256
88,768 +14.07
Galt
433,257
486.958
603,259
493,167
571,484
964,808
462,815
326,192
404,304
537,313
221,072
346,448
106,443 +69.73
180,665
Guelph
5.452,930
4.928,465
4.639,450
4,321,420
6.342.100
3,837.150
5.209.135
3,130,950
3,309,800
7.008,320
2.673,830
6,291,100
5,029.050
1,424,300
-64.18
510,200
Hamilton
46,070
668,334
420.467
493,758
649,233
494.736
657.680
678.203
608.532
1,035.620
908,900
548,199
1,056,986
198,052
349,039 -43.26
Kingston
2,461,721
932.050
1.277.595
1,176,662
1,272,631
1.893,892
1,524.522
1,100,111
1,646,182
1.221,122
1,645.700
1,344,232
627,853
140,233
363.047 -61.37
Kitchener
2,605,630
2.527.510
2,146.305
2,561.705
2,814,950
3,261,065
2,455,170
3,621.200
2,389.800
2,113,500
2.408,900
2,744.735
1.456,900
551.485
567,690 -2.85
London
38.457
57.658
100,000
75,000
209.000
273,000
105,000
100.551
125.000
50.000
58,608
71,805
42.000
*40,000 -50.00
*20,000
Midland
1.145,589
802,622
758,513
800,743
493,965
876.889
905,510
2.056,415
1,517.510
1.114.290
1,504.000
220,448
483,678
43,444
167.299 -74.03
Niagara Falls
548,174
493.158
271,325
426,088
129,925
20,959
452.000
341.957
515.090
400.000
400,000
155,508
1,024.710
23,150
117.280 -80.26
North Bay
1.329,405
2,332,540
2,515,070
5,255,188
1,923,110
1.155.130
849,496
576.205
786,985
1,478,090
1,052.100
195,470
146.375
49,035
41,314 +18.69
Oshawa
6,446.045
3.521,817
5.159,687
3,232.322
3,367,557
3,179.437
5,420,900
3,101.748
4.911.685
2,540.670
3,403,323
8,295,075
3.055,200
677,429
1.549.515 -56.28
Ottawa
205,000
135,355
120,325
50,000
262,375
330,350
533.560
310,565
141,900
168,210
200.000
99,700
131,800
19,200
23.055 -16.72
Owen Bound
630.595
295.448
439.154
541,754
839,700
196,368
342,757
272.637
437.510
565,577
622,403
278,526
797,895
133,900
192.919 +30.59
Peterborough
216,350
3.473.736
2,640,321
1.167.529
113,509
1.708,645
5,292,545
961.580
402.488
1,187.307
560,945
339,005
995,487
114,815
282,438 -59.35
Port Arthur
1,147,286
830.652
1.293.576
776,360
861.636
1,249,141
940.642
666.962
713.638
806,310
1,427,432
610.067
563,626
115,356
221,566 -47.94
St. Catharines
329.461
588,813
924,388
400,000
600,000
401,020
235,831
352,090
659,245
401,032
782,059
436,147
589,803
142,679 -34.54
93,397
Sault Ste. Marie
92,682
210,714
115,755
258,821
222,525
362,732
138.597
350.181
164.026
334,239
172,090
139,640
180,327
44.955 +44.28
64,863
St. Thomas
1.331,337
742.265
1,064.265
880,260
641.956
814,586
601.646
725,698
840,803
781,970
1,019,759
171.818
643,898
61,518
+3.78
63,846
Sarnia
228,190
437,450
725.575
958.475
391.360
306.285
362,585
306.700
328,500
547.360
2.311.120
600.205
1,914,600
91.240 -12.91
79,457
Sudbury
25,748.732
19,797,026
23.878,240
30.609,227
35,237,921
25.249.628
23,926,628
31,274.876
26,029.584
51.607,188
30,095,589
47,646.314
19,009,985
4,291,667
6,919,550 -37.98
Toronto
299,420
408,679
362,371
435,735
309,866
124.320
206,150
369.235
404.049
178,880
301,500
209,726
196,125
67.650 -31.58
46,286
Welland
5,123,150
4,518,723
4,429,308
4.144,035
4.846,338
1,990,335
4.930,832
4,333.945
4,725.034
2,601.370
5,571,849
7.319,454
1,367,525
848,377 -91.69
70,485
Windsor
4,313.260
4,241,425
11.167,750
8.101,100
4,145,750
8,921.650
4,380,500
4.526.600
4.093,200
7,714,900
5.660.700
4,412.400
4,623.050
1,742,065
-45.80
944,130
York
2.179,809
1.752,632
3.411,341
1.510,499
1,035.645
378,709
5.194.805
2,808.357
764.498
731,309
5.209,245
3,118,395
2,964,985
942,719 -44.08
527,107
i.S.-Halifax
604,847
556.813
911.882
319,162
703,741
291,898
43,907
151,907
205.304
136,577
233,667
102,830
235,107
114,344 -6.63
106,761
Sidney
1,037.942
385,461
649,520
1.201.673
736.110
204,620
101,774
2.133,676
300,000
337,073
272.701
385.850
456.692
155,611 -8.04
143,093
11'. B.-Moncton
707,100
574,100
574.500
613,916
1.122.265
358,500
1.035.300
636,277
404,208
683.530
2,063,454
1.245,608
1,256,927
440,306 -70.23
131,066
St. John
100,122,735 111,003.547 113,972,009
84,752,073
139,383,853
93.480.558
78.316,017
150,223.071
93.407.603
152,339,512
104.155.215
120,100.268
83,854.697
-43.56
30,394,252
17.154.796
East
(38
cities)
Total
Western CanadaAan.-Brandon
East Hildonan
St. Bonlface
Winnipeg
AIta.-Calgarr
Edmonton
Lethbridge
Red Deer
ask.-Moose Jaw
Prince Albert
Regina
Saskatoon
Swift Current
Weyburn
Yorkton
ritish ColumbiaNew Westminster
Vancouver
Victoria
Total West(18 exec
Total all (56 cities)
•Estimated.
242,382
38.685
66.660
742.200
155,104
77,870
218,945
2,219,400
+56.27
-50.32
-69.55
-66.55
286,611
144,600
270.695
4,396,600
557.178
260,450
811.570
6.653,650
403.667
:300,000
553,103
11.057,250
418,130
336,589
871,105
10,547,400
230.252
246,628
761,470
7,569.300
100,000
200.500
501.256
10,362.600
76.573
168.385
969.259
4.156,690
270.285
158.558
418.545
3,177,900
183.634
222.300
510,353
4,484,100
225,029
382.828
552.663
6.875.750
741,190
577.884
380,143
5.580.400
411,127
380,823
465.992
8.367.250
96.981
84.495
360.450
2.942.000
449.917
428,565
64,283
10,415
917.868
1,093.045
192,150
48,106
-50.98
-60.79
-71.75
-78.34
1.944.039
1.377,175
1.294.056
11,180
4.054,364
4.300,935
984.830
125,025
11,417,144
5,669,685
559.392
130.920
6,302,142
2,374,971
498,590
133.080
2,330,131
2.568.565
438,684
21.955
1,989,048
1,853.735
236.360
26,740
1,197.475
1,481,890
161,190
28,685
1.030.790
2,305,005
175.086
26.200
821,840
1,488,875
259,685
23.000
4,000.000
2,338,109
213,695
18,540
3.000,000
1.563,966
217.760
11.965
2.906.100
3,231.955
230,000
66,050
2.211.100
923,346
162,110
13.800
44,845
42,639
376.392
107.900
35,750
1.153
30,000
85,598
97,606
277,069
531,855
10,230
8,690
32,465
-47.61
-56.31
+35.84
-79.71
+249.80
-86.73
-7.59
87,630
269,805
1.598.440
1.718.515
25.285
24,544
32.613
1,059.303
524.692
2,971,543
5,518,040
199,730
230,803
221,825
847.474
1,485,530
10,016.631
4,103,983
200,000
300.000
500.000
1,073,078
1,333,180
6,619,206
5,756,542
100,000
357.525
137.716
1,543,389
218.985
3.482.090
3,215.995
150.000
240,610
100.175
268.326
75,000
4.242,502
2,018,204
100.000
38.176
14,311
243.535
52,740
1,208,403
1.079,442
95.020
45.140
38,387
501.126
151,465
839.325
1,282,276
95.020
2,205
45,140
289,398
254.255
1,264,030
852,548
14,500
19.055
47,995
279.180
119.598
1.784.124
1.818,909
12,430
48,985
136.575
480.000
576,598
1.699,020
774,660
16.000
102,530
191.075
1,533.095
469.975
2.603.320
1.900,000
26.721
2,376.341
423,195
590,895
275.176
1,699,020
1,404,500
26.721
130,155
397.800
103,240
1,564.541
340,136
135,062 -23.56
2.130,466 -26.56
389,673 -12.71
580.321
10,066,425
737.160
653,990
14,645,206
1,898,262
1,011.629
21,572,727
3,742,481
1,928,324
12,777,293
1,827,937
1.083,146
10.687,167
2,524,741
751.189
15,501,262
698,237
704,263
7,963,575
546,517
321,432
6,230,774
838,201
350.848
6,277.674
1,050,161
332,680
8,661.695
1.033,004
264,890
3,000,000
977.167
319,109
3.709,873
1,207,573
166,282
2.271,361
366,141
4.679.703
8,621,202 -45.72
24.865,694
45,571,396
73.871,616
53.392,808
37.413.283
38.977.446
20.217.171
17.799.533
18.414.151
28.833.794
20.655.248
30,628.099
5,222.333
21 834.499
39,015,454 -44.04
108,720.391
165.671.664
226,211.128
203.615.879
176.797.136
143.132.661
113.624.774
117.922.268
129.417.698
142.805.903
114.135.806
115.380.172
93.538.350
grf
Southern States (Conen
Ky.-Covington
Lecdngton
Louisville
Newport
Inc. or
Dec.
1932.
apivano lepuetzu
1933.
OrII11104
UNITED STATES BUILDING OPERATIONS-(Concluded).
01
566
Financial Chronicle
Jan. 27 1934
CHICAGO STOCK EXCHANGE RECORD OF PRICES FOR 1933.
Continuing the practice begun by us twenty-nine years ago, we furnish below a record of the highest
and lowest prices for each month of 1933 for all the leading stocks and bonds dealt in on the Chicago Stock
Exchange. In the compilation of the figures, which are based entirely on sale transactions, we have used
the reports of the dealings as given in the Chicago Stock Exchange official list each day, and in our range
we make no distinction between sales in small lots and sales in large lots.
For record of previous years, see "Chronicle" as follows:
Jan. 28 1933
Jan. 30 1932
Jan. 31 1931
Jan. 25 1930
Jan. 26 1929
Jan. 28 1928
Jan. 29 1927
Jan. 30 1926
page 562
page 739
page 732
page 523
page 468
page 484
page 565
page 533
BONDS.
page 505
page 366
page 349
page 353
page 415
page 409
page 416
Jan. 26 1918
Feb. 3 1917
Jan. 29 1916
Jan. 30 1915
Jan. 31 1914
Jan. 25 1913
Jan. 27 1912
page 333
page 399
page 380
page 349
page 347
page 244
page 256
Jan. 28 1911
Jan. 29 1910
Feb. 6 1909
Jan. 25 1908
Jan. 19 1907
Jan. 20 1906
Jan. 21 1905
page 234
page 276
page 348
page 205
page 138
page 135
page 198
March
Apra
January February
May
June
July
August September
October
November December
Low High Low High Low High Low High Low High Low High Low High Low High Low High Low High Low High Low High
Butler Brothers 5s
1938
Chicago City Ry 5s
1927
Certificates of deposit- A927
Chic City & Con Rys 5s
1927
Chicago Railways 5s
1927
1st mtge 5s ctf o dep-1927
5s series A
1927
5.series B
1927
Commonw Edison—
Grigsby Grunow 68
Holland Furnace 6s
Instill Util Invest bs,
Jan. 31 1925
Jan. 26 1924
Jan. 27 1923
Jan. 28 1922
Jan. 29 1921
Jan. 31 1920
Feb. 1 1919
1940
2
1a
47
II
5712
52
11
6
7
Magnet Mills 6s
1939 _
Metr West Side El 1st 48..1938 14
Extension 4s
-4-9- 46 -4-6 iii2 -4-512 ii52 -4-8-12 _...„ r,_ LiI2 "5-7-12 tii
43 4658 4614 -5434 5632 5632 504
42 52
48 52
54
15 ------------------------1212 1812 1634 18
1914
49 52 ----------------60 62
5712 5334 57
62
49 53
5534 4814 53
5212 59
5912 54
6034
6034 62
14 ------------------------1224 23 --------18
8 ---- ----
17
, 1
114
12
1
115
12
1
-6-1-
-Eg.14
53
56 59
61
-- ---1914
6018 601s 57
67 -----6714 5812 6112 54%
2112 --------1734
-Ei
54
---59
581
18
ior2 "4128 4812
--------1324 1314 1214 14
15
.3" "ii
4112
-4818
f
4712
17
15
_
14
4812-60
60
49 5012 40 4514 36
---- ---- ---- ---- -------------------488
,
5212 55
4718 528 4334
1672 1678 --------17
1634 1812 1812 18
18
----------------12
Pub Serv of Nor 11163s series G
Texas-La Power 6s
1946
208 So La Salle St Bldg 5;01958
-ii iii4 --f -2112 2134 26
2i E4
2212 la -2512 1612 5414 -6612 2-5.
Union Elevated RR 5s
1945 ___ ____ 19 19
1618 1618 --------20 23 ----------------21
United Public Util Co1st 6s A
_ ___ __ i i4.
- -i5.14
1-414 --------1123 1214
ii 29 -3-612 2514 li 26 li 2622 li
21
------------------------ 1413 1422
STOCKS.
Par per share $ per share S per share $ per share S Per share $ per share $ per share $ per share $ per share S per share $ per share S per share
Abbott Laboratories corn__' 2134 2512 2412 27
2438 26
27 3412 3318 3612 3518 3934 3412 3912 3858 40
25 29
3812 3914 38 41
40 4212
Acme SteelCo cap. stk
1712 2912 27 38
14
19
14
10
1212 10
25 1234 13
24
27
3112 21
25 29
3912 30 3412 28
2414 29
Adams (J D) Mfg cum
•
5
612 512 638 6
6
612 612 6
111a 10
4
5 --------514 6
8
10
10
11
11
Adams Royalty Co corn
2
3
1
1
1 --------1
•
278 4
278 412 278 3
212 212 218 218 218 228
2
3
Advanced Alum Castings_ _ 5 ____ ____ ____ ____ -___ __-_ ---- ---- -,-- ---,- Os 534 412 514 334 47g 314 518 258 378 2
27g
Ainsworth Mfg Corp com_-_10 --------------------------------7 --7
912 1014 --------9
612 934 _-- --1)
712 8
1
1
Allied Motor lad Inc
Allied Products Corp class A.' 412 412 ------------------------4
--------------------------------8
Altorfer Bros Co cony pref '
American Pub Serv pref_100
Amer-Yvette Co Inc corn
1
10
Armour & Co capital
Warrants
10
Art Metal Works corn
Asbestos Mfg Co common____1
43-4
14
-614
4C2 -712
14
14
37a
538
3
4
-1-2
1012 -jilt 17i.2 16
6
818 9
912 1212 13
15
0i.2 1
01-2 103
.72 -418
18 ---------------.
234
14
2
-278
i8
114
13
1212 1612 5"1-4 -652 612 112 812 -13"
1212 1314 12
13
1112 12
5
18
-7-12
14
5
14
5
14
3
i
18
14
514
112 23's 17-2 534
112
334
-412
3'2 -4"
222 178
0C4 13-54
78
18
414
-ii
iT2 -1-(i
14
14
18
:fag
18
11
3
18
14
4
4
'
- 1,1 1.58
Associated Tel & Tel Co—
14 222
Class A
-1- ----------------7 10 --------214
7% preferred
6 ----------------1
100 6
- -2-14 1.i -II
ii
11 1114 13
•
$6 preferred
$6 cum prior pref
---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---14
38
• 118 112
32 1
14
12
Associated Tel Util corn
12 134
32
72
34 112
12
34
18
14
14
12
12
58
18
4
32
Is
84
78 112 312 2
412 112 2 ---------------$6 cony pref A
• 3
212 ---- ---- ---- ---3
8
3
s
14
3
4
18
12
-------------------- -------------------------------- 3
$7 cum preferred _
3
343
4 4,
Associates Investment Co—..• --______________5i 3
4 --- - -- — 4512 45,z -._ _
- ..
8 a_ _
kutomatic Products com
-114
I --------1
2
.
ii.2 112 i1.2 112 ii8 -2/
Automatic Wash Cocoa, pref -------------------------1
2
2
1
114
3ackstay Welt Co cora ______ • --------------------------------378 372 --------5
6 ------3--5
5 ----------------423 7
Jalaban & Katz v t c
25 --------------------------------------------------------234
12 258 258
-20 22
20 20
30 30 ----------------24 30
15
15 -------------20 20
Preferred
100 17 20
23 25
5
1034 1514 6 13
312 414 614 558 -6-38 6 13
8
714 938 5
512 712 634 9
312 312 3
3astian-Blessing Co corn
534 812
24
14
5
laxter Laundries Inc A
leatrice Creamery corn
50
12
1738 1434 1932 12 21 18 1434 1932 143g 1938 1038 1618 1112 1512 1412 1732
lendix Aviation Corp corn ___5 013 11-12 538 -958 634 1012 8 13
12 1434 1052 1314 734 1114 772 938 722 0
lerghoff Brewing Co com____I --------------------------------12 1432 12 1812 1014 17
1
238 138 8
1
112
13
4
13
4
3
2
2
4
14
318 212 3
12
2
links Mfg Co cl A cony pref--• 112
214
112 214
112 2
Ilum's Inc—
•
234 234 314 314 3
4
312 312 4
312 -77, _7 - 312 332 31g 333
Convertible preferred
- ---- - _-_
714
8
1038 1634 1511 2018 1234 13
12
93
-8 1434 2118 1412 2012 1112 -1-6-12 1334 1-734 1734 2214
8 812 6
!rug-Warner Corp corn
,
10 838 934 5
,- 70 75
92 9218 --------90 92 87 90 88 9112 9112 95
7412 8434 85 90
70 8015-7% preferred
100 70 80
8
812 712 9
9
10
614 8
6
438 --458 5
434 5
• 438 5
712 712 6,
3rach & Sons(E .1) corn
4 712 7
814 734 8
Class B
334 4
_ __
614 8s 67g
414 434
Irown Fence &Wire class A. • 478 47g
414 3
1 --------114 -114 134 134 2
• 1
Class B
5
8
6
612 107g 938
51g 538 5
truce Co (EL) corn
5 434 7
12 --------14
lucyrus-Monighan class A—• 1112 1112 --------1128 111g 12
bate Bros common
10 Preferred
100 178 -4314 -5
i1.
2 -1-34
- 112 3
,
8 L
lutler Bros corn10 134 23g .
a6
-8
1012
3
414 314 4
1712 15 2412 18
1114 10
14
10
-614
i
-6
414
712
112 5
234 234 2
3
1114 18
24
12
12
10
12
10
5
314
434
614 514 538 --aig -/212 -------134 2
1812
1212
12 10
11 --------12 12
273 -4778
358
412
312
414
234 214 314 2
2
238 2
234 214 314 2
112 134 112 112 138 2
2
134 134
:anal Coast Co cony pref ._• 112 2
114 232
11
1212 10
812 1612 17 20
13 13
13 17
1012 10
la.tle & Co(AM)common_10 ------------------------712 10
10
1012 14
5
4
42 ---- -2_0 _--- 478 478 ----------------5
4
--- 4,2 518 ---- 412 412
lent Cold Storage Co corn_
19 24
25 28
24
3112 ____15 2014 1412 23
6
23 29
1738 1622 1714 1914 1212 16
:ent III Pub Serv $6 pref_..... 24 3312 22 2978 19
:entral III Secur Corp—
38 1
38
12
3s
1
2
14
12
78
ft
78
34 134
32
32
Common
1
,
a
12
12
58
38
ki
14
14
5
5
5
5
8
634 5
534 614 534 6
6
5
634 734 612 714 614 7
8
• 634 7
Convertible preferred
534 612
7
_-- ---- --- -___
814 512 534 ---- ---10
7
1012 1312 834 1014 6
16
:entre' Ind Power pref____100 --------12 12
114 178
l'ent Pub Serv (Del) corn
14
18
14
12 1
18
58
18
14
88
38
68
14
ss
14
12
is
14
-3,-3
1
14
is
18
is
-28
lent Pub Serv Corp A
113
32
12
s
18
14
12
38 1
12
18
14
38
lentral Pub Util A
12
34
14
14
38,
12
58
38
18
14
18
14
18
18
'4 --,- - _ 14
14 114
18
14
18
18
14
12
18
14
I ---------------18
14
14
34
V t c common
13
16
11
26
16
22 27
812 fo
812 1414 812 1034 10
1912 3012 1514 22
19
5
538 314 615
:eat So West Util pr lien pref• 14
514 5
10
51g 1212 4
12 24
712 21
16
2312 1312 22
Preferred
512 314 812 212 45,
• 712 1012 534 71g 5
• "
212 1
112 118 112 112 5
2 2
414 214 314 1
1
112 1
23g 338 2
112 I
12 1
112
Common
514
• 914 -1-0
:hain Belt Co corn
herry Burrell Corp
Preferred
i00 _
lig
:hic City & Con Ry nettle pf..• ____ ____
•
Certificates of deposit
18
18 — -Common
•
112 Dli 1
1
:hicago Corp common
• 1678 1834 14
Cony preferred
31g
•
:hicago Electric Mfg A
612
Melia° Flexible Shaft com 5 512 6
914
9
912
9
9
914 10
----1723 1712 16
173s 16
1334 16
la
1-5.
2i
.
-1-E
212 218 --------1
2
-i ___ __--_-- ---_
4------- ---- ---- 312 -312 _
- -11I
1
1
11s
18 '
18
18
f8
-18
r8
-14
18
18
88
5
14
14
12
4
34
",...
2.
. "'
- - --21
-214 2
4
112 1
3
334 212 334 2
278 5
318 5
3
2
234 2
234
24 2814 2114 2514 2138 2234 2058
21
2814 2412 2984 2434 3414 25 27
1718 131s 1712 1278 20
2
314
318 312 314 318 312 3,8 3,s 332 512 --------324 334 312 314 3
3
3
3
814 1078 9
5 ---- -___ 318 31g 6
7
22 1034 12
6
612 5
101,
1012 8
8
9
* No par value. r Cash sale. z Ex-clivIdend. a Formerly the Warchel Corp., change became effec lye as of Nov.3 1933.
16
Financial Chronicle
Volume 138
567
Chicago Stock Exchange-Continued.
STOCKS.
January February
March
May
April
June
November December
August September October
July
Low High Low High Low High Low High Low High Low DVS bow High Low High Low High Low High Low High Low High
Par $ per share $ per share $ per share
Chicago Mail Order common_ _5
Chicago N S & 5411wCommon
100
---Preferred
18
18
100
---- ---Prior lien preferred
13
18
100
---Chic & Northwest Ry comI00
Chicago Rap Tran pr pref A 100
312 6,4 3
5% 3
514
Chic Rys partic ctfs see I 100
---04 ---- --_Partic certificates ser 2..100 -14
Chicago Towel Co cony pref--• 5912 60 ____
per share
Per share $ per share Per share $ Per share 3 per share $ per share $ per share $ per share
1414 1814 1212 22
13 1512 1212 1312 10 1312 1358 1712 16
18
1
1
12
Eddy Paper Corp (The)
Elec Household Util Corp_ - _ _5
Empire Gas & Fuel Co6%pf 100
7% preferred
100
112
1
38
58
5 1038 4
912 712 16
10 Ii2-4 8 1278
14 212
18
18
88
60 60 60 60 64 6712 60" 65 5824 60'i -60-
112
1
-tii" If"
6
3
812
3
47g
114
3
114
434
51s
-1-1-12 "ii"
3
6'z 98
9
314
412* 712
5
7
12
40
-1-1-7g 978
814
10
53 43
-214
6
160;
3
414 5
6 10
12
LaSalle Eat Univ corn
5
Lawbeck Corp 6% cum pfd_100
Leath & Co Common
•
Cumulative preferred
Libby McNeill & Libby corn. 10
Lincoln Printing Co corn
•
7% preferred
50
Lindsay Light coin
10
Lindsay Nunn Pub Co laPreferred
•
Lion 011 Ref Co corn
•
Loudon Packing Co corn
•
Lynch Corp. corn
5
Mandel Bros Inc cap
•
Manhatt-Dearborn Corp corn.'
Mapes Cons mta Co corn
•
Marshall Field & Co corn
•
Material Service Corp com___10
McCord Radiator & hug A....'
1
McGraw Electric corn
5
meorray-Norris Mfg corn
•
McWilliams Dredging Co
•
Meadows Mfg Co corn
•
Met & Mfrs Sec cl A com
1
merrop Ind Co allot ctfs _______
Mickelberry's Food Prod corn_ I
Middle Western Tel class A_..'
Middle West Utilities com, •
•
$6 conv. pref
Midland United Co cony
•
Convertible preferred A__ _ •
Midland Util 6% prior lien.100
7% prior lien
100
Preferred 6% A
100
Preferred 7% A
100
Hart
Inc cony pref...'
Miller &
Minn-Moline Plow Imp Co com•
Modine Mfg corn
•
• No par value. r Cash sale.
14
14
15 15
14
38
8,4
1712
14
25
138
1184
412
30
12
19
14
25
134
15
518
30
1218
1912
338
30
2
6%
512
50
2
lls
2
214
334
214
134
338
--
112
112
134
114
338
112
5
2
14
1
18
908
34
161; -66" 162; "i2I4 /6"
7
3
Ds
6
2
4
212
6
4
7
4
3
3
13 14
14 16" 15
1333 15
234 812 6
4
8% 51, 7
---.--- 23
------6 111g 1178 15
912 1312 6 13
6
9
11
812
1114
11
2238 2314 24 2512 26 27
6
6
6,4 614 4
5
312 312 5,4 5,4 212 3,2
2
218 112 112 1
_
2
_
6
6
5 --512
1533 141, 17
1612 1612 1612 17
37
6
304 512 418 5
25,4 24 2634
22 2151
:
30 30 2823 /14
4
978 1278
5
9
6
11
512 6
858 10
5
8
5%
10
16
24.33
20
7
30
4
25
10
50
14
38
1212 1212
17s
114
114
134
9
38
14
12
5s
6
04
514
20
2112 3733 16
22 2734 19
6
512
26 26
25
282 412 3
1912 25 20
912 1314 9,4
58 62
9,2
3212
25
512
25
312
24
1612
114
54
78
434
11s
773
2
204
313
4
132
5
2
71g
2
5
412
12
3'2 512
1
214
7 10
134 418
1612 10
412 6,2 4
634 3
6
212 478 304 4,4
112 1,2 112 112 212 432 334 6
434 858
10 10
10 14
1218 18
13 14
"1113 12
-11-1-2 8 1212 11
13
1312 36
2834 35
221z 38,4
1,4 1,4
Ds --122 -/1-2 3
154 154 154 154 112 134
314
3
30 30
412 61s 438 514 412 -I- -524 914 938 1714 1234 18 -1112 18
612 -5
5
612 5
512
514 8
9
14 3
5
5
10 -162-2
204 13; 4
112 2
6
323 6
2514 26
2334 26,2 ti3114 -233-4 27 27 31
31
3834 42 3934 4432
7
7
812 878 1614 1334 16
9
8
734 8,2 7
13 1478
18
18
18
14
h 114
32 1
114 114
1
-Ea233 Ps
I
212 118 218
7
7
-3
318 214 354 312 5
312 5
538 714 312 7
18
15
24
14
14
18
18
14
12
53
08
58
18 1
38
58 1
Is
38
7s
154 3
1
212
:
1
as
12
12
48
12
14 114 114 234 1
12
114
112
72 1
123 Ds 1
1
1
78 2
2
112 212
514
2
2
4
2
4
4
2
2
114 212 312 478 212 27g
4
3
4,4 3
.5% 3
3
3
3
4
3
31
4
5
8
12
12
12 2
218 218 212 212
1
1
1
1
3
4
1,
8 318 112 212
5
5
7
5
12 1278 14 2112 9 15
338 311g
634 604 628 -6-33 7
8
018
712 '1I- 1112 1512 11
8
15
z Ex-dividend.
10
1014 1112 1412 13
1812 21
16
12
2
434
ls
412
214
512
138
412
3
4,4
15
8
418
18
2112
1972
10
3
412 47
5934 60
10 12
613
12
634
4
412
1012 13
512
1334 10
612
12
318
34
5
112
4
212
72
214
24
2
---- -3
314
3412 36
157g 1412 1778
4
512
7
8
4- --414 414 434
4038 4038 42 42
14 15
1312 1414
34 1
1
112 118 112
11 11
08
2
1
158
114
4
1
208
114
2
3
5
212
10
12
1623
11
1234 1312
18
/
1
4
134
5
58
712
34
412
314
414
614
412
1014
23
1823 18h
11
912
314
4
41g
658
5
15
28
1812
1112
41z
41g
7
5
14
312 5
4
45 4412 4412
1012 1014 1512
9 1034
--6i8 -178
- 712 712
4
45
9
612
9
614
11
6
8
10
1113
20 24
2012 2112
3
312
__-- -138 212
10 12
912 1034
65 65
812
x7
9
9
58 1
14
12
2812 2834 2812 29
3,4
378
141
2012 16
20
16 21
21
2038 21
212 132 314
25 25
3
15
10 11-18
1012 914 9,4
6518
10
7h 954
72
72
12
12
---- 27 27
12
14
---- - - -4
4
4
414 414
4,2 314 334 258 358
72
18
12
13
34
4
4
1
118
2
2
3
2,8 2,8
214 338 212 4
1
23
778 5
5,2 5,2 6
7
1312 1612 17 17
1014 12
2512 39,4 32 44 2812 381
3,4
18
52
3 --1F8227
12
388
61
454 378
15
8
7
41
4
4
5
18
10 10
14
211
2018 1714 1912 -i§r2
11
7 10
10
432 212 334 31a
20 25
14
20 22 20
112 312 2
25 25
3
15 19
11
1034 1278 778
65 65 6518
-1-24 9 13
712
N
18
3,2 3,2 ---- -- 4
412 __-- -16% 2112 1212 1812 712 1412 778 1012
12
12
12
12
12
%
14
14
458 6
434 8
514 6
412 514
2134 23 20 2212 1834 21
1812 2012
12
24
12
58
34 11
12 1
/
4
1434 17
1458 1838 1714 20
18 21
22 27
2012 2012
4
4
-212 212
1978 1978
12 13
3
1821
1
7
38
7
12
6
8
7
5
512 5,2
5
40 40 43 _
r8 1178 4118 4118
1538 834 13,4 854 -1-2-8; --5E4 --9-7a 612 8'8 514 814
1112 814 334 61a 8,4 518 658 5
614
814
714
59 44 4734 36 44 32 3812 34 37 33 47
9112 9112
90 90
254 /612
3
4
212
213 2,2 2
722 1023 9 9 814 9 81a 814 8,5 878 5 6
612 12
912 12
5
414 5
612 7
5
7 12
10 10
Gardner-Denver Co corn
•
712 9
10 10,4 934 15
21
1112
General Box Corp con)
•
114 1,4 112 112
General Candy Corp cl A
5
212 24
_-_3
3
318
3
3
3
41
412
General Household Util com_*
____
-- - ---- 10 231 14 2012
Gen Parts Corp cony pref.- •
12
12
----Godchaux Sugar Inc cl 11
24 124 11 -18-4 304 -114 523 8,2 622 -117•
34 1
34
6'4
34
"I1-4
Goldblatt Bros Inc corn
• 1414 1434 1012 12
1212 15
1014 12
14 1714 1714 2712 1912 26
1912 24
Great Lakes Aircraft A ser 1_ _•
14
1
38
174
14
7
8
114
2
14
12
12
12
138
3
4
118
Great Lakes D & D corn
712 834 658 814 858 85s 7,4 11,8 11 20
15 1914 1212 131 1314 16
Greif Bros Cooperage A com •
9
91
Greyhound Corp corn
04 17
5
34 11
12 234
18
78
Grigsby-Grunow Co corn
Ig 118
• 1
114
34 118
278 104 314 214 41
212 3
52 118 1
Han Printing Co corn
4
412 312 432 311/ 412 312 43
10
414 8
61z 8,8 6
97
6
684
Hammermili Paper corn
10
---Harnischfeger Corp corn
• 3
212 212 21
22, 5
3
-I6
6
-_-_
8
Hart Carter Co cony pfd
312 312 312 5
• 312 378
51
612 718 5!8
Hart Schaffner &Marx
100
712 712
5
"I"
5
Hibb Soencer Bartlett corn. 25 21 21 -52.Hormel & Co (Geo) corn
13 13
12 12 "ii" 1112 -1224 15 -1.
6." 162; To" If-ill 1612
Houdaille-Hershey class A • 532 6
512 534 314 312 314 6
6 1323 11 1478 1012 1414 1014 12
Class B
• 2
238 1
1
2
154 112 212 253 613 454 854 312 618 414 5,4
Hupp Motor Car common...10
---- -Illinois Brick Co
25
312 512 312 514 404 434 34 8
312 5
412 712 514 6
III Nor Util pref
100
60 6634 55 60 5312 531L 60 60 60 80 62 6214 62 62
laden Pneu Tool ,t c corn....'
612 1014 972 11
9
9
312 11
1114 18
13 16
13 14
Interstate Power $7 prof
*
---S6 preferred
•
---Invest Co of Amer corn
•
12
12
Iron Fireman Mfg Coy t c
• 318 312 3
412 ir2 68 715
3,4 Ws 412 4
-6" "II-2 6's -If,
Jefferson Electric Co com....•
312 4
4
4
4
618 734 10,2 9 1812 958 1412 1014 15
18
154
32
138
21
4
25
1
7
10
40 40
1232 8
7
10
5012 40
Fitz Sim & Connell Dock& Dredge Co common
•
Kalamazoo Stove corn
•
4
7
Katz Drug Co com
1814 1938 "ii;
Kellogg Switchboard com___10
118 1,4 Us 1,4
Preferred
100 25 26
25 30 32
Ken-Rad Tube &Lamp corn A •
114 112 112
Kentucky Ut11 Jr cum pref_50 19 2412
19
Keystone Steel & Wire com__.•
414 412
4
Preferred
100 26 26
25
Kingsbury Brewing Co cap...1
Kuppenheimer class B cons_..5
1
614 3% 5% 3
288 17a • 214 112 2
478 278 312 2,4 3,8 2
58 114
114
18
521
38
23
3s
14
54
12
58
12
h
8
7
8
7
8
8
8
612 81s
572 678 612 8
7112 63 76
39,8 49 3214 4014 3212 3912
61 73 57 67 42 56
614 614 5
-_-5
412
-I -17-2 ----56- 1i- 36 3812 -,10 16------'8 38
212 212 3
-2
218 3%
3
38 118
13
1
112
54 518
54 112
12 1
34
18
38
412
412 5
5
412 458 412 412
512 6
1
214
312
5
18 3
5
5
3
5
3,8
--
1212 1312
5
512
1
212
1
2
418 10,4
2
234
24
15
Cities Service Co common..' 238 318
2
338 2
332 212
Club Aluminum Utensil Co..
14
14
14
14
14
14
14
Coleman Lamp & Stove com_ -•
614
Commonwealth Edison cap.100 74 82
50 7414 -E0" I6156
4
Community Pow & Lt Co $6 pf*
Commun'ty Tel Co cum part_•
---3
3
11-2 112
Congress Hotel Co corn
100 ---------Construction Mat Corp com__•
---- _- ----_-_-_-_
114
533. preferred
114
•
1
34 118 1
Consumers Co common
14
14
12
12
5
33
18
14
6% prior preferred A____100
---- 412 412 112 112 112
7% cum pref
100
----_
1
Continental Steel CorpCommon
•
6% 678 6 10
778
Preferred
100
- -Cord Corporation cap stk.--.5
538 715 412 638 412 6s 478 912 -614
Crane Co common
25
318 312 6
412 638 558
3,2 412 3
Preferred
100 18 20 15 20 17 28 20 29 26
Cudahy Packing Co pref
100
---Curtis Lighting Inc COTO
218 4
222 ---•
-- 2I
Curtis Mfg Co common
414 512 412 512 4
5
452 5
6
5
Dayton-Rubber Meg pfd_ _ _.100
Prior common
•
Class A common
•
Decker (Alf) & Cohn Inc....'
Preferred
100
Deep Rock Oil cony Pre!
•
De Meta Inc pref w w
•
Dexter Co (The) common... 5
Diamond Match Co corn
6% preferred
25
12
14
13
314
5
14
178
12
112
2%
3
1
34
9
11
34 114
112 1,
512 6% 5
534
1514 18
1714 1712
29 34 29 3518
112 -112 122 2
3314 34
33 34
12 1678 12 141
5
5
2
4
478 312 4
42 42 4012 413
1212 15,4 1334 141
34
114
34 1'
14 1,8 --- 10 10% -- --414 212 318 112 234
5 --112
18
14
-1
4
218 112 158
58 114
38
1
12
14
12
218
58
54
218 114 -/1
.
4
5s 134
3
134 2
1
112
1
58
38
14
5s
1
08
12
5s
12
914 712 9
514 8,2
- -- _
8 16- 7 - 81.
2
32 33
1212 1512
3
3
---- -378 4
40 42
1312 1412
34 1
58
53
254 1018
232
1
18
5
1
14
38
38,
318
10
5
Jan. 27 1934
Financial Chronicle
568
Chicago Stock Exchange-Concluded.
November December
October
May
June
September
August
April
uly
March
February
January
Lew High Low High Low High Low High Low High Low High Low High Low High Low High Low High Low High Low High
STOCKS.
Par S per share $ per share $ per share $ per share 0 Per share S Per share 2 per share $ per share $ per share $ per share S per share $ per share
•
Mohawk Rubber Co com
3
2
412 ____ ____
212 31
-2-12 ----------------25 234
2
2-12
21s 312 2
3
3
-•
3
-4Co
CorliChemical
Monroe
27 30 --------23 2412
• 28 28
i Preferred
38 -------18
1,
___
18
12 1-14
12 114
14
14
•
Morgan Lithograph com
8
8
9
8
8
7
412 8
8
10
8
10 ____ __ _
114 114
114 114
114 114
Mosser Leather Corp corn----•
10
10
1018
718 7
5
9
634 9-12 634 9
4
714 652 7,2 6
4
414 4
312 317 112 112 3
Muskegon Mot Spec class A__•
Nachman Springfilled corn_•
National Battery Co pref.._-0
National Elec Power A com__•
100
11 7% preferred
10
National Leather corn
•
Nat Rep Inv Tr cony pfd
1
Nat Secur Inv Co corn
100
6% cumul pref
•
National Standard corn
•
Nat Term Corp part pfd
Nat Union Radio Corp
Nohlitt-Sparks Ind Inc corn-.
North American Car com____20
North Amer Gas & Elec cl A •
North Amer Lt & Pow com •
Ils Rights
•
Northwest Bancorp corn
•
Northwest Eng Co corn
Nor West Util 7% pr lien p8100
100
7% preferred
Okla Gas & El 7% pfd
Omnibus Corp v t c coin
Ontario Mfg Co corn
Oshkosh Overall Co corn
Convertible preferred
38 - 38
__ ____
58
78
iS
34
4 10
11,
11
_
-12
84
18
18
12
14
35
12
1112 10
10
11
18
13
12
118
85
1
13
84
12
1
3
12
112
1314 22
134
84
138
i.012
512
2414
18
--1 114
112
40,8
21
1
21
2612 22 2612 p23 2512
11
1.538 1212 23,2 2214 2734 23 2978 2338 2512 2312 26
1512 912 13
1678 10
14
214 4
4
3
518 378 5
212 318 312 8
635 5
512 778 5
8 5
,
7
318 318 --------234 3
38
14
34 ____ ____
4
--------8
34
12
___
_
__
112
2t2
1
8
5
-___
__ ____
____ ____ ____ ____ ____
112 112 112 2
312 112 3
214 378 412 712 :134 - 6
114 2
47s 3
4
3
2
312 518
712 512 1034 638
4 5
712 8,
2,2 212 512
__
213 212 ____
12 --------5
1114 1114 1114 _3
2
314 2
4
514 3
9
6
612
3
734
5
6
3
878
8,4
812
5
8141 1-4
8 10
9
9
512 6
64 978
9
5
10
10
534
5
735
6
91 1
535
ia4
6
914
535
3
418
214
1
112 1
6.12
6
2
71-2
if. ____ _ __
812
558
4
712
618
4
314
6,8
438
2
5
3,4
6
2
1
118
432
5
312
1
100
•
•
•
_
-414
4
10
____ ____
10
2
2
7
8
10
10
4
5
Parker Pen (The)Co com__ _ _10 ------------------------3
Peabody Coal corn
B5
100
- --- ____ ____ ____ __ ___
6% preferred
3
7
6
7
714 6
6
• 612 7
Penn Gas & Elec A corn
16 ___ ____ ____ ____ 1734 17-34 1712
• 16
Perfect Circle (The) Co
112 1158
2
118 118 1
134 238 1
5
Pines Winterfront corn
112 112
•
78
78 1
112 --------34
Potter Co (The) corn
1334
11
10
1512
14
102
10
1712
4
1018
•
common
Prima Co
2
2
1
218 ---- ---• 2
112 2
Process Corp corn
23
25
16
100
38
47
2912
corn
26
3812
III
25
Nor
of
Serv
Pub
3914
23
2718
27
16
37
40
48
2914
•
Common
4712
59,8 7234 3712 55
100 78 85
7234 84
6% preferred
7012 53
100 88 95 80 8212 67 7512 4C1
7% preferred
•
Pub Util Sec $7 prof
Quaker Oats Co corn
Preferred
614 512
6
71
512 512 512 6
7
612 8
22 2318 2212
20 23
22 22
2011 2312 2312 25
14
13
13
14
14
14
14
14
8
8
14
14
1
-----1
4
8 --1T2
84 114 --- 8 -Ifi --- 4
74 --11
234
112 2,
118
Us
118 118 118 Ds 1
; 118 118 -------1
234
1.12 112 112 112 _-- -__178 212 134 2
_ 4018
4 -iii" 161, 20
2-5
0 -101
i.8 -2112 17 15
i0 iS
1
512 634 612 10
418 5
4
4
578 4
335 4
1878 19
19 24
17
1512 1512 ----------------14
14 1
18 -------14
18 ____ ____
18
__ ____
• 81 8412 63 8034 63 93 81 104
100 10712 117 112 11514 107 11413 106 112
34
12
12
12
12
34
12
Railroad Shares Corp corn____•
17
10 1534 1678 16
16
16
16
Rath Packing Co corn
8
27
214
2
17
f
t
212
v
_50c
2
coin
112
Co
123
mfg
Raytheon
67 preferred v t c
8 228 214 214
• 2,
Reliance Internet Corp A 57
6
6,4 712
Reliance Mfg Co common___10 ____ ____ 6
100 8312 8512 8512 8712 8734 8724 87
Preferred
5 ____
5
---_
6
--cony
6
pf-•
Mills
Rollins Hosiery
•
Ryan Car Co (The) corn
9
8
714
9
9
712
8
corn
•
Inc
Sons
&
Ryerson
•
St Louis Nat Stk Yds cap
•
Sangamo Electric Co
100
Preferred
Seaboard Pub SerY Co S6
Seaboard Util Shares corn____'
Sears Roebuck & Co com____•
Shaler Co (The) class
Signorie Steel Strap cum pf..30
Common
Sivyer Steel Casting Co cona •
25
So Colo Pow Co A corn
Southern Union Gas com----•
Souwest Gas & El Co 7% pf_100
812
7
223
84
1814
612
37
3912
6314
7318
10
11
-------6
712
614 10
21
214
2
1818
3
30
30 •
60
'70
If%
312
312
2812
534
3812
40
66
74
10
10
____ ____
------ 15
15
1712 18
738
'7
____
7
12T4
2
2
20
312
3218
31
65
7518
-9
8
5,4
8
9,
8
,
7
26 5
3
3424
418
4212
43
7418
82
i2T2
212
218
2212
334
33
3212
60
73
103 11712 112 12512 132 145
110 11512 111 11524 114 116
514
8
24-13
334
312
30
334
3514
3512
71
7712
518
518
4
612
30
2312
2
314
1312
Vii
2135
21
57
57
8
30
25
235
435
25
334
27
33
61
72
4
30
21
112
3
812
212
1812
19
50
5834
133 137 125 136
11512 11712 11512 117
6
5
4
512
5
612 612 6
30 --------2532
23
ll2 23
22
218 114 131
35
4
3
418 3
712
13
1612 8
314 214
312 2
9
25
1418 18
18
914
2512 14
28
3712 47
56
62
4014 5214 38
111 125
115 120
112 128
113 120
812
10
--------1235 1235 10
5
1
712
2624
2312
135
434
1012
314
1612
1624
4354
45
115 12412
111 115
2
-10
90
_
34
78 ---- ---- --- ---_ ---- -1
135 1
118
2114 20 21 ____ -___ 2312 2424
2135 2112 21
20 26
134 212
3
1
212 11 4 214
235 212 218 212 2
14 ; 83 114 ; 114
318
3
214
112 -218 312 438 358 428 314 314 218 212 2
1614
912 1158 1034 1812 1012 1734 13 1424 12 1412 12 1234 117g 141g 14
100
90
84
-89
---90
89
89 00
_ _ __ 90 90
90 90
13 15
8 10
13
1-3 ---- ---- ---- ---- --- ---- ---- -- ---- ---
11
1112 20
58
53 123 1
23
22
2012 27
5
478 434 8
18
2
26
7
1
19
4 1612 1 34 --------1212 15
---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- 40
5
5
635 512 8,2 7
512 --------5
512 5
5
4114 34
814 7
34
7
11
13
1134 13
48
32 3338 3212 36
614 7 ---- ---- 4
48
5
11
1312
50
5
51
512
54 1
34 y%
38 138
38
58
58
14
34
-12
38
12
1814 2478 22,
8 3128 2928 3938 31
1314 1034 14 22
47
1812 22
4 724 7T2
4
6,
-4 --------4
4
114 114 114 114 124 124 212
4
4
6
478 478
6
6
----------------------------------------213
34 --------35 138 1
52 --------35
32
4212 50 --------44 4418 0412
5112 42 50
51
--------
__
_ _ _ _ ___
_
58 __ _
12
34
12
-4-2-12 -56 4114 403'4 4458
8 3734 4612
35 43,
84 814
8'58 813 8 T8 il8 678 818
912 812 9
7
8
7
8
2
138 2
____
8
17
____
4
13
3
17a
212 212 224 212 2 4
612 612 --------612 6")3
8
71 1 8
8
614 9
6
12
-_ _ ..--- - 12
412 312 412
3
4
512 4
-12
14
12
38
38
78
18 .18
12
34
114
38 1
41
4412 3912 42
40 43
41
51
46 5112 50 52
60
138
34 114
112 178 1
138 2
2
•
q
218 334
12 --------18
34 -2-78 2
14 4
'4
11
14
Standard Dredge corn
234 312 238 278 212 24 2is 312
212 3
4
3
73 534 312 5
84
1
31
1
1
12
14
1
•
Cony preferred
428 435 433 5
418 412 378 5
534 414 5
458 712 3
434 418 8
4
712
414
4
43
4
514
8
33
5
pref____2
cony
Furn
Storkline
Studebaker Mail Order•
Class A
1.1
14
12
14
12
18
14
14 112
15
--------------------------------Common
I
1
•
Super Maid Corp corn
9
7
8
624 812 8
712 71.2 534
6
6
7
7
----------233 4
--------------------com-10
Co
Paper
Sutherland
1614 2412 1718 2014 1614 1824 1114 1718 1212 151 1 1314 1512
1434 2178 1812 23
718 1118 812 16
8
25
714 834 7
1
Swift & Co cap stock
4
4
252
22
4
27
8
243
,
27
19
2212
3014 2614 2935
32
20
2424 2214 2914 2612 3212
1718 1218 1514 1314 1724 16
15 14
Swift Internacional cap
e,-,
Telephone Bond & Share A___•
100
Ist preferred 7%
25
Thompson (J R)corn
Transformer Corp of Am
12th St Store (The) pref A---•
335 335 ---- ---_
6
6
10
8
4 818 612 9
,
6
1
3,4
634
2,8 ---- ---- ---- ----
58
318
3
13
13
812 935
2s
,
134
4
9
3
7
9
1
I
4
3
102g 12
1234 11
114
134
212
212 2
2
4
12 --------6 1412
1514 833 1312 812 1078
2
6
712
2 -------212 2
7 --------9 1012
024 8
9
7
835
212 _--- ---- ------------------------1
1
12
518
534
34
8
774
14
1,2
4
3212 3514 40 4012 --------447 4512 49 49,4 ---- --- ---- ---- 46,4 46,
• 2612 2814 20 2578 24 2678 2414 32
Union Carbide &Carbon
2
2
614 335 378 312 414 212 212 214 3
8 234 478 5
2,
2 ------------------------2
2
1
United Gas Corp corn
United Ptrs & Pubs corn
34
42 48
43,
Preferred
8 4618 44T8 4-8
45 4814
38 4512 43 6218 44 45
2124 3378 33 39
18 23
20 2014 2212 19 22
U S Gypsum
115 11412 120 118 118 ---- ..--- 120 120
100 10212 10614 104 106 104 105 10114 106 10512 10512 107 21
Preferred
1812 2378
1435
834 22
8
4
8
113
63
107
7
812
4
62
912
8
•
US Radio &Telev corn
8 318 1
1,
112 178
i
i4 1-4 lis 2.2112 2
4
12
83 138 138 214
13
88
58
28
38
12
28
Utah Radio Products corn- •
Util Pow & Lt Corp A
24
112
1
78
114 11 1 ---- ---is
12
2
4
3
4
34
8
1
22
2
112
-----------1
1
1
Common non-voting
112 2
12
78
1
114
78 118
112 212 112 2
135 138
8 3,s
24 135 1,
Bs 118
28 liti
112
1
•
Utility &Ind Corp coma
2
318 138 218
4
414 011 418 514 312 518 3
7
112 312 218 434 4
3
112
3
21s
312
3
•
Convertible preferred
2
214 ____
4
412 4
__
212 224
635 4
178 178
4 --------4
4
3
___ 3
•
Viking Pump Co corn
22 25
23 _23
23 28
241g 2414
23 2812 2124 2612 25 25
25 25
•
---- ---- ---- 20 20
734 9
8
14 7
8
638
Preferred
524
8
612
812
9
714
813
7
1012
2
718
,
6
5
8
62
8
624 435 5114 47
• 6
Vortex Cu p com
27
24
2424 2512 2514 2612
2735 2534 2612 2418 2534 25 25
1935 17 1914 1712 1924 1912 2478 23
1938 18
• 19
Class A
3
8
2,
4
112
2
112
3
112
118
178
112
ss
4
12
14
1,2
34 1
14
84 1 18
____
__
14
14
14
14
•
Wahl Co common
1612 1834
1518 2112 1612 1758 1614 1814 1512 1812 17 19
1714 20
1474/ 1418 20
• 1314 1414 1112 1335 1134 1418 1212
Walgreen common
2
2
Purchase warrants
8512 8..02 8712 8712 80 80
79 8238 8314 84 86 86
83 88
--- __-_ 82 82 ---- --__ 7012 76
100
6ii% preferred
* a.
Warchel Corp coin
•
Convertible preferred
56 65
69 8312 72 7812 57 75
59i4 7934 73 92
7012 7934 7412 80
72
4714 5912 4714 5838 49
Ward (Montgomery)& Co CIA • 5212 61
2512 2534 2521 2514 25 30
23
28 45
21
1724 4414 27 27
1912 20 25
15
18
14
15
12
45
Waukesha Motor Co corn
17
1 18
12 113 114 212 118 124 118 112 13
58
12
33
24
12
12
88
58
14
34
12
1
corn
8
7
•
28 138
Co
Pump
Wayne
--2 4 234 234 234 ____ _....
414
4
412 6
132 158 3
1
1
1
112
112
pa
I12
•
Convertible pref
114 i4 114 14 114 213
2
2
25
12
Western Grocer Co corn
is
s
i
8
7
1
1
is
as
12 1
1
1
1
1
1
1
1014 11
10
1078 914 04
518 712 712 1414 912 1334 9T2 1114 1114 12
5
----- --------------------4
Wieboldt Stores Inc corn
314
312
3
3
____
1
314
31
214
414
3
5
2
2
Williams Oii-O.Matic corn___ *
478 534 412 5
Us 434 212 -1%
7
412 4
712 5
-24
12
ILI
4
3
414 5
412 714
714 10
Wisconsin Bankshares com__ •
Yates Amer Mach part pref •
•
Yellow Cab Colnc(Chic)
14
628
12
814
14
714
14 ---- ---- ---- ---6
935
8
7
8
,
14
135 114
I
12 118
114 178
-2
Ds 314
12
-4
; 214 1; 224
11
1212 12
12
11
151s 1138 12
1512 12 13
10
978 2112 1335 22
338 218 258 2
54
721 254 158 235 2
12
01 Nov. 3 1933.
as
effective
Corp..
Product.
lc
Automa
to
• No par value. r Cash sale. z Ex-dividend. a Name changed
Zenith Radio Corp corn
•
ki
78
Bs
58
12
N
258
114
21 1
III
218
2
5
Volume of Sales of Stocks on Chicago Stock Exchange
During 1933 18,289,000, as Compared with 15,642,000
During Year 1932-Par Value of Bond Sales
$1,433,000, Against $10,597,000 Year Ago-Year-End
Statement of President O'Brien.
The volume of stocks sold on the Chicago Stock Exchange
during 1933 amounted to 18,289,000 shares. This compares
with 15,642,000 shares during 1932 and 34,404,200 in 1931,
and with the all-time record of 82,216,000 shares in 1929. The
volume of bond sales (par value) amounted to $1,433,000 as
against $10,597,000 in 1932 and $12,480,500 in 1931. The alltime high record for bond sales on the Exchange was reached
In 1932, when they amounted to $27,462,000 (par value). The
following tables, issued by the Exchange,show the volume of
sales of stocks and bonds, by months, during the years 19311933, inclusive:
VOLUME OF SHARES OF STOCKS BY MONTHS.
1933.
1932.
1931.
416,000
393,000
476,000
1,537,000
3,547,000
3,932,000
3,207,000
1,087,000
898,000
836,000
709,000
1,256,000
1,766,000
1.341.000
2,295,000
1,588,000
1,216,000
615,000
492,000
2,288,000
1,773,000
752,000
551,000
552,000
3,376,500
4,199,700
3,941,000
3,456,000
2,338,000
2,937,000
1,911,000
1,861,000
3,306,000
2,230,000
1,575,000
3,273,000
18,289,000
15.642.000
34,404,200
January
February
March
April
May
June
July
August
September
October
November
December
VOLUME OF BONDS (PAR VALUE) BY MONTHS.
Theodore E. Cunningham, James E. Bennett, John J. Bittel, John A.
Low and Alex Moore were elected members of the Nominating Committee.
Committee on Appeals.
Robert W. Darcy, Earle M. Combs, Kenneth B. Pierce, George T.
Carhart and Phillip C. Sayles were elected to serve two years on the committee on appeals; David H.Annan was elected to serve one year.
1931.
Committee of Arbitration.
$165,000
99,000
97,000
123,000
156,000
160,000
120,000
73,000
93,000
123,000
113,000
111,000
$1,397,000
712,000
938,500
688,000
824,000
1,013,000
422,000
368,000
1,144,000
1,648,000
1.036,000
2,290,000
Members of the Committee of Arbitration elected are Frank F. Thompson, Raymond E. Andrews, Adam J. Riffel, Joseph A. Nosek and Francis
J. Coughlin.
21,433,000
$10,597,000
$12,480,500
For 51 of Chicago's 100 years the Chicago Stock Exchange has been closely
Identified with the progress of this great city and the vast hinterland surrounding it.
The part of the Chicago Stock Exchange has been to provide an important
cog in the machinery through which the corporations of the Middle West
have obtained the necessary funds for expansion and development. Until a
few years ago a large part of these funds came from centers that had reached
a point where they could finance their own businesses and have surpluses
remaining to send elsewhere for investment in the businesses of other centers.
A few years ago, economists tell us, Chicago and the Middle West reached
that point. We have been able for some years to provide sufficient funds to
finance our own growth as well as send funds elsewhere for investment.
The world importance of the industry and commerce of the Middle West
is well known. Our railroads, our meat packing business, our food business,
our banking facilities and any number of other businesses contribute toward
making us one of the greatest centers of industry and commerce.
It invariably follows in history that following great industrial and commercial growth comes increasing importance of the financing machinery of
great centers. With this in mind, the Chicago Stock Exchange is building
on a censervative and sound foundation.
In the eventful year just passed we have strengthened all departments of
our Exchange. We have added improved physical facilities to the floor of
the Exchange. The Governors during the year issued a statement setting
forth definitely the policies of the Exchange with respect to listing securities on the Exchange. Notable among these were: Requiring complete
frankness to their stockholders by the management of corporations listed;
requiring sufficient distribution of securities to warrant a public market,
prior to listing. Henceforth, corporations seeking to list securities on our
Exchange must agree to the principles as stated. We have endeavored successfully to obtain agreement to the principles by corporations already listed.
Despite the fact that during the past four years there has not been a
failure of a member of the Exchange, who is not a member of another Exchange, we have increased the supervision of the Exchange over its members
and have raised even higher than heretofore the requirements for admission
to membership. These and other things we are doing all contribute to a
sound plan of development and growth for our Exchange.
We realize we have an opportunity. We realize further that we have an
obligation to this important section of our country to build a securities
market comparable to its industry and commerce, at will be our purpose
to work toward the end of fulfilling this obligation.
We also give below a record of the yearly transactions
on the Chicago Stock Exchange back to 1915:
RECORD OF TRANSACTIONS ON CHICAGO STOCK EXCHANGE.
Stocks.
Bonds.
Shares.
18,289,000
15,642.000
34.404,200
69,747,500
82,216,000
38,941.589
10,712.850
10 253,664
14,102,892
10.849.173
$
1.433.000
10.597,000
12,480,500
27.462,000
4.975,500
7,534,600
14,827,950
7,941,300
8,748.300
22804000
Directors.
Eight directors were elected to serve three years, namely, Barnett Peron.
Gale Smart, John E. Brennan, Leslie N.Perrin, Frank G. Coe, David H.
Lipsey, Orrin S. Dowse and George J. Mellen.. Charles V. Essroger.
Winthrop H.Smith and Leeds Mitchell were elected directors for two years.
Arthur C. Sullivan, Simon Is.ayer and Archer E. Hayes were elected to the
directorate for one year.
The election of 14 directors was necessitated by an increase in the number
of directors from 15 to 24. Henceforth, the terms of eight directors will
expire annually.
Nominating Committee.
1932.
Michael J. O'Brien, President of the Exchange, issued the
following year-end statement:
1933
1932
1931
1930
1929
1928
1927
1926
1925
1024
Peter B. Carey Re-elected to Third Term as President
of Chicago Board of Trade-R. P. Boylan, First
Vice-President.
At the election of officers of the Chicago Board of Trade
held Jan. 8, Peter B. Carey was re-elected President to
serve his third corsecutive term. Robert P. Boylan, second
Vice-President, automatically became first Vice-President,
and Thomas Y. Wickham was elected second Vice-President.
The regular ticket as selected by the Nominating Committee
was unopposed, which, it is said, is the first time such a
situation has prevailed in the history of the exchange. Other
results of the election were reported as follows in the Chicago
"Journal of Commerce" of Jan. 9:
$1,744,000
2,049,000
2,260,000
1,096,000
346,000
265,000
249.000
965,000
426.000
297,000
348,000
552,000
1933.
January
February
March
April
May
June
July
August
September
October
November
December
Year.
569
Financial Chronicle
Volume 138
Years.
1923
1922
1921
1920
1919
1918
1917
1916
1915
Stoats.
Bonds.
Shares.
$
13,337,361 19,954,850
9,145,205 10.028,200
5,165.972 4,170,450
7,367,441 4,652,400
7,308,855 5.672,600
2,032,392 5,305,000
1,701,245 8,368,950
1,610,417 11,932.300
715,557 9.816,100
At the annual meeting on Jan. 15, new officers and directors were installed in office.
President Carey of Chicago Board of Trade at Annual
Meeting Says Grain Trade Is Confident of Better
Times for Farmer.
Although 1933 was a tumultuous year in the history of
grain markets, the future holds much hope, President Peter
B. Carey told members of the Chicago Board of Trade on
Jan. 15 at their annual meeting.
"The main trend toward rehabilitation continued through
1933," Mr. Carey said. "To-day the grain trade is confident
of better times for the farmer, if extremist views are not
permitted to prevail and bring about further market restrictions which once more would upset the economic balance,
with ensuing distress for all." What the commodity markets
need more than anything else, said Mr. Carey, is the continued friendly help of official Washington in working out
trade problems as they arise. "We have every reason to
believe that such friendly co-operation will continue to be
forthcoming," he stated. "Agitation for more laws, mire
restrictions, and shackles that weigh down the markets.
simply react to the harm of the producer, the consumer ar d
the trades of distribution.
"Durirg dicussion at Washington the suggestion was made
thatour board of directors should be proportioned as equitably
as possible among the various branches of tne exchange. Accordingly, this policy was at once adopted and the directorate
enlarged at the last election from 15 to 24 members.
"In the year just closed the grain trade has worked in close
unity, and in co-operation with allied trades."
Wars, panics and distress had never closed the Chicago
Board of Trade in its long history, Mr. Carey pointed out.
But when the bank holiday began in 1933 a new situation
was created. In part he added:
Banking facilities are indispensable in grain marketing. Nevertheless an
effort was made, as an accomodation to country shippers and farmers, to
conduct the cash grain division of the exchange with the futures market
closed. After a courageous trial, it was demonstrated that the cash market
Could not function properly without the protection of hedging accorded to
all through the facilities of the futures market. Hence, the cash grain
market was likewise forced to close.
In the development of the present system of marketing, which had its
origin more than 75 years ago, the cash and future divisions have become so
closely inter-related that one is dependent upon the other. Any movement
of cash grain to market involves a cash outlay, readily procuraole from the
banks when the futures markets and their hedging facilities are available.
But without futures trading the whole machinery was clogged and still.
It was impossible to determine the value of the cash product, which is
dependent upon the value of grain in advance months as recorded in future
delivery trades.
Mr.Carey traced,in his annual report, the rise and fall of grain and other
commodity prices last summer when inflation fever fired the public to
unprecedented participation in the markets.
570
Financial Chronicle
Jan. 27 1934
The Railroad Problem—Co-ordinator Eastman in Report to Inter-State Commerce Commission
Says Federal Railroad Ownership Is Final Solution—Against Acquisition Just Now Because
of Finances—Grand Scale Consolidations as Recommended in Prince Plan Not Feasible at
Present Time.
A tentative plan for public ownership and operation of
Synopsis of Report.
the railroads of the United States was transmitted to
The report deals with the question:
I. Is there need for a radical or major change in the organization, conPresident Roosevelt by the Inter-State Commerce Comduct and regulation of the railroad industry which can be accomplished
mission Jan. 20, in a voluminous report by Joseph B. by Federal legislation?
It will be followed as speedily as possible by other reports dealing with
Eastman, Co-ordinator of Transportation, on the progress
following questions:
made under the Emergency Railroad Transportation Act theII.
Is there need for Federal legislation to regulate other transportation
of 1933. The report deals with the question: "Is there agencies, and to co-ordinate properly all means of transport?
III. Is there need for amendments to Federal statutes to improve details
need for a radical change in the organization, conduct and
the present system of regulating the railroads?
regulation of the railroad industry which can be accom- ofIV.
Is there need for further Federal legislation to improve railroad labor
plished by Federal legislation ?"
conditions and relations?
An
appendix
to the report contains a complete account of the work of
In submitting the report to the President, William E.
Co-ordinator from June 16 to Dec. 31 1933.
Lee, Chairman, expressed the Commission's desire "that theThe
report begins with a consideration of the major ills in the railroad
the absencerof expression of opinion on our part with reference situation which appear to be in need of remedy. It discusses, first, the
financial
ills, in view of the fact that a more or less continual inflow of
to matters discussed by the Co-ordinator and his assistants
is essential to a healthy railroad system. This capital must norbe not construed as indicating either approval or disap- capital
mally be obtained from private investors, and they will only invest if prosproval."
pects are to their liking. The outlook for railroad credit is, therefore, a
matter
of vital importance.
Mr. Eastman's tentative plan is presented as an appendix
It is shown that the railroads are not in the aggregate over-capitalized,
to his main report to the Commission on what is wrong either in the sense that the par value of outstanding securities exceeds the
with the railroads and what ought to be done about it. money invested in the properties, or in the sense that it exceeds the value of
the properties for rate-making purposes. This is the situation in the
It is intended, he said, "to suggest some of the possibilities." aggregate.
Many of the individual companies are conservatively capitalBriefly, Mr. Eastman suggests, but does not recommend, ized, but others are over-capitalized, whatever test be applied. The fluctuthat the railroads be owned by a Federal corporation ating commercial value of the properties, which is based on earning power,
now very low, owing to the low state of the earnings.
chartered by a special Act of Congress and called the United is In
considering the outlook for credit, the amount and character of railStates Railways. The latter would acquire present pri- road funded debt is important. It aggregates 56% of the outstanding capfigure. The public has a very practical interest
vately-owned properties through the issuance of Government italization, which is a high
in this matter, to the extent that a high ratio of fixed charges impairs the
guaranteed bonds in exchange for securities of the com- credit
of the carriers. The character of the funded debt is much affected
panies. It is not proposed in the report that the Federal by the age of the industry. Numerous bond issues go back to the early
there was a multitude of small companies, and carry first liens
corporation plan be put into operation at any time in the days, when
on lines which are now merely parts of larger systems. On top of these
near future. It is rather an expression by the Co-ordinator, underlying issues has been built a structure of bond issues which may be
of what he considers will ultimately be necessary if the secured by first liens on some lines, but by inferior liens on others. The
differs widely in individual companies and is often very complibackbone of the National transportation system is to be situation
cated. Most of the strictly first-lien issues have been closed, so that the
preserved.
railroads must rely, in marketing now bonds, on so-called junior issues.
Meanwhile, it is recommended by Mr. Eastman that the These will not, in most instances, be a good medium for the procurement
capital funds.
Emergency Transportation Act, setting up the office of ofIn
1920, the ratio of funded debt to stock was the same as it is now,
Co-ordinator, be continued until June 1935, during which and yet several billions of securities were marketed in the ensuing 10 years.
conditions were very different then, however, for reasons which are
Credit
time events would be expected to demonstrate the need
fully stated in the report.
for public ownership and enforced large-scale consolidation
The present attitude of investors is a very important factor, and inin the public interest. The management of the proposed vestigation has disclosed that they are beset with all manner of fears as
to
railroad investments. Regardless of whether these fears are justified,
Federal corporation would be vested in a board of five or they
exert a most serious influence. With revival of business, confidence
seven trustees appointed by the President. These men will increase, especially as railroad net earnings are likely to improve at a
would act as directors of the corporation, with power to faster rate than gross. It is plain, however, that there is a hard road to
before railroad credit will be re-established on a satisfactory basis.
subdivide the acquired properties and create subsidiary travel
Ability to market new stock will in the long run be essential, and such
Federal corporations for their direction. The United stock issues are not likely to attract investors until they are persuaded
States Railways would be regulated by the Inter-State that railroad earnings can be maintained for the future on a comparatively
high level. Better provision against depreciation and adequate sinking
Commerce Commission as to rates, accounting, certificates funds
for debt will be demanded. In one way or another all such expedients
for new construction and acquisition of other transportation are a burden upon earnings, and will require a higher standard of earnings
necessary in the past.
ageneies, but the Commission would be without power to than has been thought
Viewed from the standpoint of average railroad conditions, the outlook
suspend proposed changes in rates as at present.
Some railroads will measure up to the necesunpromising.
for credit is most
For the principal reason that the country is not now sary standards with improving business conditions: but many others will
it a slow and difficult process, even if times improve. Reorganizations
financially able to withstand the strain of acquiring the find
of insolvent carriers will help, by reducing their fixed charges, but they
vast railroad properties, Mr. Eastman says he is not now are difficult to effect quickly,and affect credit in adverse as well as favorable
prepared to recommend public ownership and operation nor, ways.
Nor is the situation from the standpoint of management and operation
for other practical reasons, to go along with proposals for satisfactory.
The railroads together now form a single transportation
regional consolidation of the carriers on a grand scale, system. Joint operations are on the whole of more importance than local
such as proposed in the "Prince plan." The report, how- operations. However, the single system is still made up of a large number
of parts which are separately owned and managed, and there is no effective
ever, outlines the advantages that would result from unified centralization
of authority over many matters of common interest. The
public ownership and operation of the railroad transporta- sidation is in some respects like that of the States prior to the adoption
These separate sovereignties in fact constituted a
tion machine as "an autonomous, non-political enterprise." of the Constitution. were
linked together by the Articles of Confederation,
single nation, and they
Sizing up the railroad credit outlook, Mr. Eastman says but the bonds of union were loose and ineffective. It was necessary "in
it"is most unpromising." He proposes that the Government form a more perfect union," and hence the Constitution.
report describes in some detail the adverse effects of the competition
freely extend credit to the carriers until the return of private ofThe
the railroads with each other, and of their inability to co-operate effeccredit to industry. He adds that bankrupt roads should tively in matters of common concern. These difficulties not only extend
be speedily reorganized with a "very material reduction" into thefield ofoperation and service,but also into the adoption ofstandards
equipment and supplies, and into the field of rates. It is pointed out
in fixed charges. He says the railroads are entitled to in
that the railroads have so far been unable to grapple collectively and effec"a new lease of life" and that their future credit depends tively with the readjustment of rates and the adoption of new forms of
meet the vastly changed conditions brought about
on net earnings which will revive rapidly with improvement equipment and service to competing
agencies of transportation and their
by the advent of new
in general business. "If private credit begins to revive," severe inroads
upon traffic. The competition of these new agencies also
competition
intense
between railroads a much
makes
of
the
preservation
Mr. Eastman observed, "the Inter-State Commerce Comimportant thing from the public point of view than it once was.
mission can be helpful in stimulating it by taking appropriate lessOder
ills of the railroad situation are briefly discussed,
the
action with respect to undue accumulation of funded debt, effect of public regulation in creating a division of authority including
and responsithe
initiative
of
managements.
the establishment of sinking funds or. other reserves and bility and retarding the
The report then proceeds to a consideration of possible major remedies
the regulation of rates."
for these Ills. It is made clear, however, that this report deals only with
On the compulsory consolidation matter, Mr. Eastman the railroad industry. What should be done with the other transportation
reports that the suggestion will be embodied in a specific agencies is reserved for a further report.
The most extreme
these possible major remedies is public ownership
bill to be submitted in a separate report. "Work on such and operation, and itsofadvanatges and disadvantages are discussed
at some
a bill is now in progress, but as it ventures into new, largely length. The question is regarded as one of practical expediency rather
than fundamental theory, for it has always been recognized that a railroad
unexplored and difficult territory, the preparation requires is
a public industry and performs a function of the State. Other countries
much time and care."
have adopted public ownership and operation, not as a matter of principle.
Volume 138
Financial Chronicle
butrfor reasons of expediency. Often they have been forced into it because private enterprise would not build, or could no longer carry on.
Sometimes military considerations have been paramount, or an unwillingness to rely on foreign capital, or a desire to use the railways for the benefit
of the general business and industry of the country in its coMpetition with
other countries.
Because of this variety of underlying motives, it is idle to measure the
results by the test of earnings. Nor is a demonstration of various evil
results convincing, for it is easy to assemble a most impressive array of evils
from the history of our own private railroads. The immediate question,
inreonnection with both public and private ownership and operation, is
whether demonstrated evils can be corrected. The ultimate question is
which system, when fully safeguarded, will produce the better results.
The familiar examples of Federal control in this country during the War
period and of the Canadian National System are discussed, and are shown
not to constitute convincing arguments against public ownership and
operation.
The report finds that public ownership and operation would go further
than any other remedy to abate the railroad ills described. Public credit
would take the place of crippled private credit. Management and operation of the industry would be wholly united. Public regulation would
largely merge with management and operation. Financial domination
would cease. The important questions are whether other ills would take
the place of those abated, how serious they would be, whether public
opinion is ready for so radical a change, and how difficult and perilous the
taking over of the properties would now be.
Various real dangers incident to public ownership and operation are discussed, together with possible safeguards against them. These dangers
include political interference in management, the difficulty of administering
efficiently so large a unit, the elimination of competition, the question of
labor relations, the state of public opinion, and the cost of acquisition.
The latter is found to be the most serious danger at the present time.
The others are frankly and fully discussed, and a plan of public ownership
and operation is suggested, under which the properties would be owned and
operated as a non-political enterprise, separate and distinct from ordinary
governmental business, through a corporation controlled by the Government by stock ownership and managed by a board of five public trustees,
with the aid of an advisory council appointed by representative business
and other groups in the community.
The report next discusses grand consolidation plans. This term is
used for convenience to describe any plan for the consolidation of the
railroads into a single system or a very few systems. It is pointed out
that under the present law the Commission is directed, in preparing a
consolidation plan, to preserve competition as fully as possible, and no
mention is made of economy of operation as one of the determining factors.
Recently, in view of the rapid development of competition from other
transportation agencies, the thought has developed that a wiser plan
would be one which would give major consideration to economy and less
weight to the preservation of competition. Last year the National Transportation Committee gave expression to this thought in its report. An
actual plan, known as the Prince plan, was also worked out in considerable
detail providing for consolidation of the railroads into seven systems.
The proponents of this plan estimated that it would save, on the basis
of 1932 traffic, something like $740,000,000 per year.
The Co-ordinator had two studies made; one into the legal phases of
co olidations, including the extent to which the Government may enforce
the4l, and into the opportunity for improving the present system of public
re ation which such consolidations might open up, and the other into
the economies and other results of consolidations like the proposed Prince
plan.
The first of these studies, called the Craven study, is attached as an
appendix to the report. It reaches the conclusion that consolidations
can be compelled and by a process, if need be, which will involve an exchange of securities without the use of cash. Mr. Craven also outlines
a plan under which the Government would participate in the management of the consolidated systems through paid public directors selected
by and attached to the staff of a Federal Railroad Administrator.
A report on the Prince plan, referred to as the Poland report, is also
attached as an appendix. This study was carried on with the aid of an
advisory committee of carrier officers selected by the Co-ordinator in each
of the throe regions. The time available permitted only an approximation
of the economies which would result from the plan. The estimate arrived
at was $218,000,000, based on 1932 traffic, or less than one-third of the
original estimate.
The report states that the railroads could probably be put together
under a grand plan of consolidation in a way which would result in a material reduction in fixed charges, and that credit conditions would also
be improved by the economies which would ultimately be realized, although it would take time to bring them about. Such a plan would be
open to some of the objections which are raised to public ownership and
operation. A further disadvantage is that such plans ordinarily would
eliminate railroad competition at many points but still retain it at others.
The present uneven distribution of competition would be accentuated with
enhanced danger that population and business would tend to concentrate
at favored points.
Text of Conclusions in Co-ordinators Report.
Theoretically and logically public ownership and operation meets the
known ills of the present situation better than any other remedy. Public
regulation of a privately-owned and operated industry, reaching deeply
into such matters as rates, service, capitalization, accounting, extensions
and abandonments, mergers and consolidations, is a hybrid arrangement.
When an industry becomes so public in character that such intimate regulation of its affairs becomes necessary, in strict logic it would seem that
it should cease to masquerade as a private industry and the Government
should assume complete responsibility, financial and otherwise.
While there are dangers incident to any governmental undertaking, so
there are to any private undertaking and to any private-public undertaking. The history of the American railroads is proof enough of this
fact. There is reason to believe that many of the dangers which are
ordinarily seen in public ownership and operation can be brought under
control, if suitable precautions are taken. I incline to the belief that
such ownership and operation will be the ultimate solution of the railroad
problem. However, if and when that time arrives the impelling motive
will probably not be logic or theory, but the practical one that private
enterprise and capital will not be able to carry on successfully. That
has been the general experience.
Not Ready Now to Urge Government Ownership.
Nevertheless, I am not now prepared to recommend resort to public
ownership and operation. This is for the principal reason that the country
Is not now financially in a condition to stand the strain of an acquisition
of these great properties, imposing burdens which cannot be definitely
foreseen and might well, in present circumstances, be disproportionately
severe. The danger would be enhanced by the fact that there would be
a comparatively long period before the new system could be got into
571
smoothly-running order, and by the further fact that the railroad industry
is now in a stage of accelerated evolution. This is true, indeed, of the
entire transportation industry, and it is at least questionable whether
the railroads alone could well be nationalized without including other
forms of transport to some considerable extent. The British Royal Commission of 1930 was unanimously of the opinion that such inclusion would
be necessary.
Nor am I now prepared to recommend a grand consolidation plan.
Any attempt to make such a plan effective speedily would require new
legislation. It would precipitate a controversy in which many railroads,
many communities, and labor would join with equal vigor and from which
it would be difficult to emerge. Disregarding this practical difficulty.
I am convinced that such a consolidation would have to be compelled
and that it would not be wise, even if it be legally possible, to force so
radical and far-reaching a change upon the country under present conditions. Nor am I persuaded of the merits of any plan of consolidating
the railroads into a very few systems which would follow and emphasize
regional lines, and retain, but at the same time vitally disrupt, competitive
conditions. These comments apply to a plan of enforced and immediate
consolidation. The subject of gradual consolidation will be discussed
below.
What, then, shall be done? There are possibilities in the situation
which, I believe, make it wise, quite apart from existing economic conditions, to postpone the immediate consideration of any radical or major
change in the organization and conduct of the railroad industry. In
the present stage of transportation evolution, these possibilities merit
thorough exploration and are likely to throw needed light on the railroad
future. To explain this, a brief discussion of the Emergency Act is
necessary.
Results Have Deviated from Ezpeatations.
The results of this legislation have deviated somewhat from anticipations.
As at first proposed, the Act had a comparatively simple purpose. The
thought was that the railroads were wasting money by undue competition
with each other and by inability to act together for the common good.
They were enjoined to co-operate in avoiding waste, and to further this end
a Federal Co-ordinator was appointed with power,subject to review by the
Commission, to require action when necessary.
Before the Act was passed, however, the NIRA legislation took form,
with the prime object of relieving unemployment. Inevitably economies
in railroad operation are largely labor-saving economies, and a program
for the railroads which would add to unemployment appeared inconsistent
with the NIRA program. The result was the restrictions on reduction
in railroad employment, which are contained in Sec.7 of the Emergency Act.
These restrictions have prevented much actual accomplishment in the
elimination of waste. Yet the Act is, I believe, serving a useful purpose
in the railroad world. The original accent and emphasis were somewhat
unfortunate. They created the impression of a decaying industry from
which dead limbs and excrescences must be pruned,and which, to be saved.
must be cut to the bone. This was not in fact the thought behind the
Act, yet such an impression was created. The fact is that what the railroads chiefly need is a new lease of life—a reinvigoration.
The situation is not hard to understand. The railroad industry is old,
its habits were formed, and it was unused to competition from without.
It had become accustomed to regulation, and wedded to the thought that
the specific for low earnings is invariably increased rates. Then the old
order in the transportation world changed, almost overnight. New
agencies and methods of transportation were developed, which to some
extent were either more comfortable, more flexible, or more expeditious
than the old. They established certain new standards for the railroads
to meet, in both freight and passenger service, and accepted methods of
making railroad rates gave them an opportunity for growth which they
otherwise might not have had.
Railroads Sought Relieffrom Federal Government.
The first reaction of the railroads, as a regulated industry, was to seek
relief from the Government through restraint of the other agencies. Lest
there be misunderstanding, let me say that no intimation is intended that
such relief may not be justified. That is a matter which will be discussed
in a further report. The point here is that this avenue ofrelief was followed
first. The second and later reaction was self-help,through changes in operation, service and rates.
Waste is more than a matter of duplicate or unnecessary service or facilities or labor. It can be found in failure to provide the service and charge
the rates which will bring maximum use and revenues to the rails. The
thought is, not that economies in operation should be neglected, but that
the pursuit of such economies should be combined with efforts to increase
the attraction and usefulness of railroad service, to the end that traffic
and business may be increased. The railroads will then take on the aspect,
not of a decaying or waning industry, but of one which is seeking economy
and efficiency for the sake of growth and development. When once it is
understood that this is the goal towards which endeavor strikes,the attitude
of railroad labor to economies in operation will,! believe,change materially,
particularly if steps are taken to prevent distress in the process of readjustment. In the administration of the Emergency Act, this thought of
economy which aims at growth of business has been uppermost.
Many of their vital problems, however, cannot be dealt with adequately
by the railroads individually. They must be dealt with collectively, by
the industry. As the industry is now organized, this can be done more
effectively with Government help than without. As indicated in detail
in Appendix 1, the Co-ordinator has under way studies of such problems,
in which the interest and aid of the railroads have been enlisted. These
studies it would have been very difficult to make without the help of the
Government. There is as yet insufficient organization and leadership
In the industry for effective co-operation in such undertakings.
Cites Study in Handling of Less-than-carload Lots.
An illustration is the study of the handling of less-than-carload or merchandise freight and express traffic which is now nearing completion.
Other studies of nation-wide scope are in progress, of the handling of passenger and carload freight traffic, of the practical application of scientific
research, of the possibilities of car pooling, of the appropriate use of standardization and simplified practice, of other improvements in purchasing
methods, of cost finding, and the like. It is quite possible that some of
these studies will pave the way to a much larger use of motor vehicles as
an adjunct to railroad service, and to a revamping and simplification of
the freight-rate structure. They should disclose where the rails cannot
perform the service as well and as cheaply as the motor vehicles, and
where they can perform it better and more cheaply. If we are to have a
properly co-ordinated system of transportation,such knowledge is essential.
The railroads will also. I hope,find it possible, collectively as an industry,
and by centralized organization, to keep in close touch with the progress
of modern science and be able to forecast, prepare for, and take advantage
of future developments.
The regional studies, which go more to the elimination of duplication
and waste in the operation of terminals, shops, and other facilities, will
572
Financial Chronicle
also show where economy and efficiency can be gained, if the railroads
are permitted to, and will, co-ordinate such operations. But the underlying purpose will not be the mere saving of labor. The ultimate objective
is better service, which will attract traffic and Increase revenues.
Improvement in Service Held as Likely Result.
I may be unduly optimistic about these studies, but I believe that the
results will be helpful. It is possible that many of the objectives which
are sought in grand consolidation plans or even in public ownership and
operation can be attained through co-ordination, pooling arrangements,
and a better organization of the industry. It now seems probable that
rather extraordinary opportunities for better and cheaper service will be
disclosed, through the pooling of important kinds of traffic, and that such
arrangements are possible without consolidation of railroad systems and.
if the preservation of competition be desired, without substantial increase
in the number of non-competitive points. Certainly these possibilities
deserve exploration.
It Is not too much to hope that the railroads may be able to "form a more
Perfect union" to deal with matters of common concern, such as scientific
research, the establishment of standards, the adoption of new types of
equipment and new forms of service, the unification of terminal operations,
and readjustment of the rate structure. There is need, also, for a study
of the organization and administration of Individual railroads, to dertemine
whether methods which originated years ago meet present-day demands.
Such a study would have the further advantage of throwing light on the
character of organization required for the administration of much larger
units. If such were eventually created.
Much Will Depend on Railroad Management.
Much will depend upon the railroad managements. They are of one
mind in opposition to public ownership and operation, and in general
they
are against grand consolidation plans. One or the other of these remedies,
however, will eventually be applied, unless the managements are able to
remedy present ills in some other way. This alternative, if it be possible,
can only take the form of a better organization of the railroad industry
which will enable them to deal collectively and effectively with matters
which concern them all. The managements must pull together instead of
pulling against each other in a great variety of different directions. The
difficulties are great, and I am not at all sure that they can be surmounted.
The tendency to cling to assumed individual advantages in preference to
those which would be gained by co-ordination or correlation is ingrained.
and, it may be, impossible to overcome. But it is well that the!managemanta should have the chance to apply the principles of statesmanship,
and with the help of the Government, at least at the outset. Much
will
be learned In the process.
Recalls Report Issued by Transportation Group.
In its report a year ago, the National Transportation Committee made
these observations:
The data before us indicate that (whatever may be the limits to which
actual regulation or administration is extended), the necessity
for planning
and for comprehensive information on the whole transport
problem is
absolute. A cogent railroad argument is to the effect that the Government
has regulated the initiative out of the railroads and that by reason thereof
they are in their present plight. While there is a tendency to over-emphasize this, three facts remain: first, that the Government,
through the agency of the Commission, has for many years principally
to
dominate the railroad administration; second, that railroad assumed
and
management are not abreast of sister industries; and third, thatpolicy
some railroads are in perilous condition. Nobody can assume authority
accepting responsibility. The existing roalroad condition speaks without
itself
to say that regulation by the Commission has left something to befor
desired.
The organization should be reformed without expansion to act along
wider
and more affirmative lines with less attempt to run the business transportation, and with more concentration on protection to the publicofand
tenance of a healthy national transportation system. It should mainhave
inquisitorial powers and duties to keep constantly abreast of changing
developments and should be required to report annually to Congress on the
state of the Nation's whole transport system with its recommendations
for
betterment.
Without endorsing all of the specific statements, some of which are
not
wholly accurate, the general thought behind these observations is
sound.
The I.-S. 0. Commission has had a remarkable record among governmental
agencies for independent, non-political action and devotion to duty
under
pressure of very heavy work. As one who has served on that body for
15
years, however. I know the difficulty which it encounters in pursuing
general
studies of transportation problems and in developing broad plans for
the
improvement of transportation conditions. The Commission is faced with
the constant necessity of deciding a multitude of cases, many of them exceedingly complex, and under pressure not to delay its decisions. This
routine work which is its primary duty absorbs its attention, and little
time
is left for research and thought on broader lines.
Urges Federal Officer and Outlines His Duties.
In my judgment, there should be an officer of the Government, with
powers like those of the present Co-ordinator. However, I would not yet
make such an arrangement permanent, for it needs further trial before it is
given any final form. From present experience I derive the following_
propositions:
1. Such an office should not assume the form of a bureaucratic establishment. It should be carried on with a comparatively small and flexible
staff. It should be regarded as a means of Government aid to, rather than
domination of, the transportation industry. The officer in charge should
not have the aspect of a director general or administrator of the industry.
So long as the railroads are privately owned and operated, the emphasis
should be on the private management. It should be aided in the development and initiative and enterprise, rather than restrained. The officer of
the Government should lend his aid to the promotion of leadership in the
industry, to organization for common ends, and to the initiation of general
studies of various phases of operation, service, charges, and management,
where such studies are needed. He should have full power to procure
Information and require studies, and should also be authorized to utilize
the services of men loaned by the industry for specific purposes, but not to
require such services. To secure such help, he should depend upon his
ability to convince the industry of its value. He should, in short, be primarily a means of concentrating and bringing to focus the best thought of
the industry, rather than a means of supplying or imposing thought from
without.
Status of Co-ordinator Should Be Non-Political.
2. The present title, "Federal Co-ordinator of Transportation," will do.
His field of activity should ultimately be extended, however, over all
transportation agencies which are subjected to Federal regulation. He
should not be a member of the Cabinet, but should be strictly non-political
in status. He should be appointed by the President with the adivce and
consent of the Senate. For the present, the office should be temporary,
as it now is. If later the office is made permanent, I am inclined to believe
that the term should be indefinite rather than fixed. There should be no
danger of having to endure incompetent or otherwise unsatisfactory service
for a long term of years. The Co-ordinator should be subject to removal
Jan. 27 1934
at any time by the President. The nature of the work is such that if it
were done well the danger of abuse of the power of removal would be remote.
3. The funds for the support of the office should be obtained, as at present,
by direct assessment upon the Industry. About $400,000 per year is now
obtained in this way from the railroads. This amount could be somewhat
increased to advantage. It should not be forgotten that the Co-ordinator
is now receiving help from the Commission, much of it overtime
work.
which can be justified only as an emergency matter. However, If the field
of activity were extended, whatever amount might be assessed should be
distributed among all of the transportation agencies affected
4. It should be made clear that the studies of the Co-ordinator need not
be confined to the elimination of "waste and other preventable expense,"
but may include all matters in transportation of general importance and
affecting the public interest. He should not, of course, be expected to cover
all possible matters, and the choice of subjects should be left to his discretion.
Voluntary Action of Roads Is Viewed as Desirable.
5. The Co-ordinator should endeavor to secure his results largely through
voluntary action on the part of the carriers. The emphasis should be on
the initiative of the private managements, at least until it is shown that
this cannot be relied upon. To this end they should be relieved entirely
from the operation of anti-trust statutes, both Federal and State. With
the degree of public regulation which is now exercised over the railroads
and which may be anticipated in one form or another over the other transportation agencies, these statutes serve no useful purpose. The Co-ordinator should be given authority to arbitrate disputes between the carriers. For the time being his authority to order should be as provided in
the present act.
6. The restrictions upon reduction in railroad labor employment now
contained in Section 7 of the Emergency Act should be changed. They
go beyond what is reasonable and stand in the way of improvements in
operation and service which in the long run will be of advantage to railroad
labor. The employees cnnot with wisdom oppose progress which will
stimulate the growth and development of the industry. It is right and
proper, however, that where changes in methods of operation or administration are made, not because of lack of business, but for the primary
purpose of performing work more efficiently, salvage of the employees
should be a charge upon the savings effected, within reasonable limits. A
special report on this matter will later be transmitted. If general business
conditions improve and if the efforts of the carriers are directed primarily
to increase in traffic and secondarily to economies, the labor situation
should be much less difficult than it is now.
7. The Co-ordinator should continue to be under the duty, as now, to
recommend'from time to time, to the President and to Congress, changes
in legislation or new legislation for the improvement of transportation
conditions. If defects in the legislation under which he operates develop,
or if the need becomes clear for some major change in the organization,
conduct and regulation of the transportation industry, he will be in a position to make this need known at once to.the appropriate authorities.
The plan outlined above visualizes an officer of the Federal Government
whose duty it shall be to concentrate upon the broader transportation
problems free from preoccupation with hearings, arguments, and study of
specific complaints, and who, without in any way administering the industry, can lend aid and assistance to it. As aforesaid, the success of this
plan will depend, not only upon the Co-ordinator, but to a very considerable
extent upon the private-managements.
Railroad Credit.
The plan suggested does not deal directly with the critical problem of
railroad credit and the ability of the railroads to secure necessary supplies
of now capital from private sources. Indirectly, if it results in an improvement of the railroad situation and earnings,it will have the effect ofstrengthening credit. As I view this problem, it resolves Itself into the following
propositions:
1. Railroad credit from private sources will in any event be negligible
for some time. The dependence during this period must be on Government
credit. This should be extended freely, to the extent that there is reasonable
security, for sound and well-considered expenditure which will add to employment and improve service to the public. Where funds are sought to
meet debt maturities, either of interest or of principal, the policy now
embodied in the RFC Act and the Emergency Act should be observed and
somewhat amplified. That is, new Government credit or the term of existing RFC loans should not be extended, if it appears to the Inter-state
Commerce Commission that the carrier Is in need of financial reorganization in the public interest. This principle might appropriately be modified
to permit of loans to meet maturities of underlying securities which the
Commission believes would not be disturbed in a reorganization.
2. Reorganizations of carriers now or hereafter in insolvency or bankruptcy should be effected as speedily as practicable, and in a manner which
will result in a very material reduction in fixed charges. I realize that there
are some difficult questions to face in this connection, but the sooner they
are faced and investors knew what to expect, the better for all concerned.
In this connection it is significant to note that some of the most successful
reorganizations in railraod history, notably those of the Santa Fe, the
Union Pacific, and the Norfolk & Western, were effected in the midst of
the financialldepression which began in 1893, and that those whose obligetions were deferred in those reorganizations later profited the most.
3. Future credit conditions, apart from the reorganization of carriers
with unsound financial structures, depend largely upon future railroad
earnings. The chances are that net earnings will revive rather rapidly
with improvement in general business conditions, and If the general tone
and enterprise of tho industry can be improved at the same time,this will
also have a favorable effect on credit.
4. The situation may be improved by progress with consolidations discussed below.
This credit problem is critical in its importance. Government credit to
a privately-owned industry isidefensible only as a temporary expedient.
If private credit begins to revive. the Commission can be helpful in stimulating it by taking appropriate action with respect to undue accumulation
of funded debt, the establishment of sinking funds or other reserves, and
the regulation of rates.
Consolidations.
That consolidations or other unifications of railroad properties, at least
within certain limits. may often be desirable is conceded. I do not favor a
grand plan of consolidation, to be accomplished either immediately or. as
Mr. Craven proposes, gradually over a term of years. However, provision
for compulsory consolidation under strict supervision merits a trial, both
because it would permit such union of railroads to be accelerated where
that may be desirable, and because it would, if Mr. Craven is right in his
law, permit consolidations to be consummated by exchange of securities
and without the use of cash. The latter result would be of most decided
public advantage. Legal questions in connection with such a provision
may require judicial decision, but the sooner this situation can be_clarified
the better.
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Efforts towards co-ordination should not prevent the progress of consolidation, to the extent that it can be shown to be in the public interest.
In my judgment, the Commission should be empowered, after full public
hearing, to enforce such a consolidation on the terms which it decides to
be just and reasonable, whenever the Co-ordinator requests that it initiate
a proceeding for that purpose. I doubt, also the necessity or desirability
of requiring the Commission to adhere to any fixed plan of general railroad
consolidation in this connection. Subject to such general standards as
Congress may see fit to prescribe, a demonstration that what is proposed
will be in the public interest should be the controlling factor.
Enforced consolidations should be through the medium of Federal corporations created for the purpose. In fact it may be advisable to require
such charters for all railroad companies. The Craven plan of public directors on the boards of such corporations should be put to test, when and
where the Commission finds that it can be tried without detriment to other
railroad companies not having such public directors.
Recommendations.
So far as the conclusions reached above suggest possible amendments
to the Emergency Railroad Transportation Act.1933,there is no immediate
need for legislation. The President has authority to extend the operation
of Title I until June 16 1935, and the matter of perfecting amendments may
well be postponed until it becomes necessary to determine whether this
legislation shall be given a more permanent status. This statement is not
Intended to apply to the amendment which is suggested to the labor restrictions of Section 7(b). Specific recommendations in regard to those
provisions will be submitted later in a separate report.
Nor is immediate legislation necessary with respect to the suggestion
that the carriers be entirely relieved from the operation of anti-trust statutes, both Federal and State. The relief which can now be afforded under
the Inter-state Commerce Act and the Emergency Act will be sufficient
for immediate purposes.
The suggestion with respect to loans or extensions of loans by the PWA
and the RFC, I do not embody in a specific recommendation, because it
should first be considered by those branches of the Government.
The suggestion that the Commission be given authority, in certain circumstances, to compel consolidations will later be embodied in a specific
bill, which will be submitted in a separate report. Work on such a bill is
now in progress, but as it ventures into new, largely unexplored, and difficult territory, the preparation requires much time and care. The specific
provisions of such a bill are of essential importance in the consideration
of the proposal.
Tentative Plan for Public Ownership and Operation of Railroad
Systeme of United States.
The following plan, as indicated in the main report, is
merely a tentative outline intended to suggest some of
the possibilities.
Ownership.—Propertles to be owned by a Federal corporation chartered by special Act of Congress, the stock to be nominal in amount and
owned by the United States. Corporation to be named the United,States
Railways. The properties would be acquired through bonds of this
corporation guaranteed by the Government. The method of acquisition
through exchange of these securities would be substantially as outlined
by Craven in Appendix 3.
Management.—(a) United States Railways to be managed by a board
of five (possibly seven) public trustees appointed by the President with
the advice and consent of the Senate for terms of two, four, six, eight and
10 years. respectively, reappointments to be for 10 years. Trustees to
be removable only for cause and to have salaries the same as those paid
Justices of the Supreme Court. If desired, it could be provided that
the original and subsequent appointments should be from lists of names
submitted to the President by the Advisory Council, described below;
or the original trustees could be named in the special Act of incorporation,
with provision that subsequent appointments be made by the President
from lists submitted by the board. The trustees would act in the capacity
of directors of the corporation.
(b) Trustees to serve under a declaration of trust solemnly worded,
specified in the Act, and binding them to administer the properties with
sole regard for the public interest, as efficiently and economically as possible, and without regard to political party considerations.
(c) United States Railways to be conducted after the manner of a private
corporation and upon a self-sustaining basis so far as possible. Could
be made subject to Civil Service regulations, if desired, but probably
not necessary. Trustees to have full control over all salaries and wages,
subject to complete right of organization and collective bargaining by
employees, and to be prohibited from employing, discharging, promoting,
or demoting any officer or employee at the solicitation of any public or
political party officer. Such officers to be prohibited from such solicitation.
(d) Trustees to have full power to subdivide properties as they see fit
for purposes of management and operation, and to create subsidiary
Federal corporations for this purpose if deemed advisable.
Advisory Council.—Such a council to be made up of 24 unpaid members
selected by groups specified in the Act and representing business, agriculture, labor, and the like. Advisory council to be consulted by trustees
on such questions of general policy as either the council or the trustees
request be so considered. Advice of council on specific matters to be
made public, and also reason of trustees for failing to follow any such
advice. Council to have right to procure full information from the trustees
in regard to the affairs of the United States Railways and at its expense.
Taxation.—Taxes to be paid by United States Railways to the Federal
Government like any private corporation, and also to be paid to States
and municipalities, provided they agree to uniform taxing provisions
approved by the trustees.
Bonds.—Trustees to have power to issue bonds of the United States
Railways at their discretion, to provide for new construction or additions
and betterments, to purchase properties of other transportation agencies.
and to provide for debt maturities if no other funds are available for this
purpose. Sinking funds to be provided for all bonds.
Rates.—Trustees to be under duty, so far as practicable, of producing
net earnings sufficient to meet all charges. including bond interest and
sinking fund provisions. Surplus earnings to be used for new property
or for retiring debt, as the discretion of the trustees. Amount of surplus
earnings subject to no limitation except discretion of trustees.
Deficiencies.—Government to meet any deficiencies in earnings, but
the repayment of such appropriations to be a charge on the future earnings
of the corporation.
Regulation.—United States Railways to be relieved of regulation by
the Inter-State Commerce Commission, except over rates, accounting,
certificates for new construction, and acquisitions of other transportation
agencies, but Commission to have no power to suspend changes in rates.
Other Agencies.—UnIted States Railways to have power to acquire other
agencies of transportation, subject to approval of Commission, including
terms and conditions.
Professor Warren of Cornell UniversityjTells Senate Banking and Currency Committee That
Administration's Monetary or "Gold Bill" Will Give "Almost Complete Assurance" of Credit
Expansion and Continued Price Rise—Value of "Life Insurance" Dollars—Calls Bill Boon
to Home Owners, Farmers and Other Debtors.
Prefessor George F. Warren, of Cornell University,
appearing in Washington on Jan. 22 at the hearing before
the Senate Banking and Currency Committee on the Administration's so-called "gold bill" told the Committee that the
bill would give "almost complete assurance" of credit
expansion "and hence of a great and continued price rise
over a period of months." We quote from a Washington
dispatch Jan. 22 to the New York "Times," which says that
he added that this could "not help but give a further proportionate boost to business." The dispatch also noted:
Advantages of the measure were described by Professor Rogers as the
provision for a low gold value dollar, increased definiteness as to the range
of its fluctuations, a large gold profit with its potential inflationary influence and ample control by the Government over the use of this profit so
that resulting inflation can be restricted. He admitted he was more interested in the immediate than the permanent effects of the bill.
Professor Warren is also reported as having made it clear
that he thought the essentials of national and world recovery
lay in the money system and the use of gold.
He is likewise indicated as saying that a certain amount
of fluctuation in currencies was unavoidable because of the
chaotic conditions in the world. A dispatch to the "Times"
described further as follows what Professor Warren had to
say with regard to the bill at the Committee hearing:
Secretary Morgenthau, Herman Oliphant and Professor Rogers were
present when he first saw the monetary bill, he explained, in other words.
It had already been drafted. Later "it was considerably, but not essentially, changed."
He stressed that the price of gold advanced 5% in England and 56% in
the United States from February 1933, to December 1933. The price
index on 45 basic commodities in the United Kingdom went up from 91 in
February to 93 in December, whereas in the United States it increased from
69 to 94. This, he emphasized, shows the relation between gold and commodity prices. In France, where the gold standard still prevails, prices
rose by 2%;in Holland. 1%,and in Italy, fell 4%.
Seventy-five years' study of the economics of gold, Professor Warren
said, showed that the price divided by the prices of other commodities
always gave the same result. For a decade after the World War began
there was no demand for gold as most of the nations were off the gold
standard.
"When the demand for gold came," he said, "and the price of gold rose,
the prices of commodities collapsed."
Citations From History.
The world, he added, was in a similar position after the Napoleonic wars.
France then discontinued to bid on gold and silver; commodity prices rose
In the United States and prices in England rose.
"Then we went on gold," he continued, "and England completed the
process of adopting gold in 1828, and our prices fell.
"Only the gold using countries had inflation from 1914 to 1920 when the
demand for gold came. China did not. The whole of civilization got
adjusted to too high prices. Wagee,the price of a haricut, the cost ofliving
in everything went up."
There had been 34 experiments in deflation, but "we were the last to give
up the gold standard."
The turning point came, he said, and America could not stand deflation
in commodity prices any further, so we went off the gold standard.
"The fundamental reason for leaving gold," Professor Warren said,"was
not the losses in stock but the fact that the amount of deflation in commodity values was so great we couldn't go on.
"By cutting the gold content of the dollar you can raise prices. By
raising prices it becomes easier for men to pay their debts, business profits
to accrue and taxes to be paid. Wages inevitably rise as a consequence."
As to Life-Insurance Dollars.
The life-insurance dollar, Dr. Warren said, may have less value than
before, but the company "will probably remain solvent."
"I think it is impossible," he added. "to pay public and private debts
without deflating the dollar."
"We have to begin from where we are with the world in economic chaos."
he concluded. "I do not think we are now in a position to go back to the
old gold standard, even though ultimately it might be desirable. We must
continue restrictions and put ourselves In a position where there will never
again be a run on gold. If we give a direct compensation on gold, this is
possible. The bill doesn't prevent a man who needs gold for industrial
needs or foreign nations to get gold. This is not a paper but a gold-bullion
basis. I think there will be no trouble about confidence in the currency."
The transcript of Professor Warren's statement and replies
to questions before the Senate Banking and Currency Committee were given in part as follows in a Washington dispatch Jan. 22 to the New York "Herald Tribune":
In response to a question from Senator William G. McAdoo of California, Professor Warren made the following statement on the reduction
of the dollar's gold content:
"By cutting the gold content of the dollar you can raise prices, and all
countries that have done it successfully have done it at a time when the
gold was not rapidly rising in value. We are in that situation now. By
cutting the gold content of the dollar we raise prices. By raising prices,
it becomes easier for men to pay their debts. By raising prices, business
starts and profits accrue. It becomes easier to pay taxes. Since it starts
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Financial Chronicle
business, wages will rise, or, if they are still high, and the man is unemployed
and has a high nominal wage, he will get the wage.
Says Debtors Will Benefit.
"What effect will it have on the different groups of people? The greatest
benefit accrues to the home owner, the farmer and other debtors, because
their debts are fixed in dollars. A great benefit comes to the holder of life
insurance, because, while his dollars will be less valuable than these swollen
dollars which we had recently, his company will probably remain solvent.
"If I may inject just one figure, the total value of all American securities,
both stocks and bonds, listed on the New York Stock Exchange, increased
from $45,000.000,000 in March last to 861,000,000,000 this January, or
35%. It makes it possible to collect. We think a great deal of the debtor
who cannot pay, but if the creditor cannot collect, what value is it to him
to have the dollar go back?
"What will it do to salaried people? It will do various things, depending
upon how they are situated. Certain people are receiving merely their
previous salary. Their position has been improved, so far as salary is concerned, by a decline in prices. Their position will be restored to what it
was, which will be not as good as this unusual situation, but most such persons are either in danger, in deflation, of losing their jobs or having their
salaries cut. Also, those who do not will be relieved of their relatives.
"Let me give you an illustration which has only a few statistics in it.
I know of a doctor who said he had a $7,000-a-year practice. This was last
winter. He said that leaving the gold standard and rising prices would be
injurious to him because his dollars would not go so far. I asked him
'How are collections?' He could not collect, and I said 'how about the
relatives?' Then he threw up both hands, and said,'Father and mother
and brother and his wife are just moving in.'
"Nominally, this doctor was injured by having prices rise. Actually,
he may be able to collect, and actually his relatives may be able
to live
by themselves.
"Take the man with life insurance. I figured out life insurance, at the
date paid, for myself, just to see when I paid it, the amount paid, and
weighted it by the price level. I did not invest in my life insurance at
this price level. If I receive dollars or if my estate should receive dollars
which had a buying power equal to the dollars which I saved, I think
that is enough, and I would much prefer that to having my life insurance
company agree to pay dollars so valuable that they did not come."
Says It Is Re-, Not Inflation.
A question by Senator McAdoo led Mr. Warren to say: "If you raise
prices you raise incomes. If you raise incomes you raise debt-paying power
by a much greater percentage than you raise incomes."
Senator McAdoo.—Is not your argument really that by doubling the
number of gold dollars which are legal reserves of the banks, you increase
the opportunity for a very great inflation through the issue of currency
and paper money based upon that deflated gold?
Mr. Warren.—I would like to express it that if we raise it by a reasonable
amount we have a reflation, and if we go too far we have inflation. I would
like to distinguish between the two.
Senator McAdoo.—Can you tell where reflation ends and where inflation
begins?
Mr. Warren.—As an abstract principle, I should say that if we restore
the price level to which our civilization is most nearly adjusted. that I would
call reflation.
Senator McAdoo.—What is to determine that price level? I do not
think we can say, arbitrarily, that 1926 is the basis toward which we ought
to work, and yet we are using that constantly as a basis for consideration,
not only statistically but otherwise.
Mr. Warren.—It depends on your debt structure, and on the restoration
of equilibrium within the various price structures. That is a very popular
term, but I do not know how to express it accurately otherwise. It will
raise prices that have fallen most, and not raise prices that have not fallen,
which restores the balance.
Assails Tucker's Position.
Professor Warren's general explanation of the relationship between
the supply of gold and prices was given in response to a question by Senator
Frederic C. Walcott (Rep.), of Connecticut, who read from an article
by Rufus S. Tucker, of the Brookings Institute, published in the New
York "Herald Tribune" of Jan. 11. In this article Mr. Tucker essayed
to show that Professor Warren's theory had worked in less than half the
years since 1834 because prices had not responded to increase or falling
off in gold production.
"In 75 years," Mr. Warren said, "there was no trend away from the
relationship of gold to prices. In 1850, for example, the ratio—dividing
the world's monetary stocks in the long period—was 105. Prices in
England were 105. Sixty years later, although the monetary stocks
had increased from an index of 23 to 147, the physical volume of production of the world had increased from 22 to 140, and we had the same
ratio. In other words, in 1910, the ratio of the world's monetary gold
to the world's production of commodities was the same as it was 60 years
before."
Senator Gore.—Would the fact that silver was in use as money then
react on prices and destroy its analogy?
Mr. Warren.—I think not.
Senator Gore.—You think gold exercised the power, notwithstanding?
Mr. Warren.—I am giving you the figures as they are, regardless of
gold, which is the question in point in this discussion. The question
is not why this happened, but is it true?
(Continuing after interruption) The point to which Mr. Tucker refers
is that while there is no trend away from this ratio, this is a basic thing,
controlling the price level in gold countries. But the year to year changes
fluctuate along this line precisely as the waves fluctuate at sea level. If
you count the waves and how they differ at sea level. I do not know how
you will come out, but I am sure the waves fluctuate at sea level; and I
think the best answer to the question is merely to look at the curves on
the chart that I will pass down the line, and you will see how the two lines
fit. The one is fluctuating about the other, and in any given year the
gold buying is fairly smooth. One may be going up and the other down,
but they are going together at the end.
That long-time relationship fitted just as well as those two curves fit.
But the essential point is that there are no trends away from the relationship, and not that they fitted in any given year precisely.
Carrying this one step farther, the world's gold supplies in 1928 were
38% greater than they were in 1914. The world's production of basic
commodities was 38% greater than in 1914, and therefore, if the conditions of 75 years before the war had continued, we would have expected
pre-war prices as nearly as those two curves had fitted in the past—prewar prices plus or minus some small difference which, if it was minus
before for many years always in the past became plus, and if it were plus
before for many years, always in the past became minus.
Cites Post-War Price Rise.
In other words, the assumption would have been approximately prewar prices in 1928. Why were prices throughout the world, in gold,
Jan. 27 1934
roughly 50% above pre-war for a long period? The reason, I believe.
is a very important consideration in this. The reason, I believe, was
on the demand side for gold. The Continent of Europe went out of the
gold business. It discontinued bidding for gold, not only on paper, but
actually discontinued bidding for gold, and much of the gold went elsewhere. That which did not go elsewhere lost value, because gold was in
low demand and prices in gold rose.
Senator Gore.—What period was that, in point of years?
Mr. Warren.—That was from 1915 up to 1929, when the break came.
During that period it was much as if a large part of the world had demonetized gold and had gone to copper money, or anything else. The
'remaining part of the world were the only bidders for gold and the gold
was cheap, and we had a price level, roughly, 50% above pre-war.
Many persons who challenge this gold statement will say that that price
level would remain up, and their arguments to-day for it going back are
precisely the same as the arguments they then had for it remaining up—
clearly fallacious, I think. There was no reason for expecting that any
such price level would remain when the world attempted to return to
gold, and when the demand for gold came the normal expectation developed; when the world attempted to return to gold, prices in gold collapsed.
There was nothing in the world's gold supply that had increased to
give rise to the expectation that all of a sudden in the world the countries
formerly on gold should again be on gold with a price level 50% above
all historical experience. A sudden change of that sort does not occur
permanently, but the cessation of demand reduced the value. Prices
in gold rose. The return of the demand caused the crash.
Says France Started Deluge.
France returned to gold in June of 1928, and the panic was soon on. She
was in a pecualiarly strong position with respect to gold. The Germans had
had to pay reparations. Those reparations were largely paid by Americans
and other investors who lent money to Germany. The gold was still here,
in many cases, and in some cases in England, but it was passed to German
possession, then passed to French possession, and still was located in the
same spot. But when France began to attempt to return to gold she was
in a very strong position with gold credits, and the crash was soon on.
I am not blaming France. I am merely saying that when the world attempted to return to gold there was not gold enough to maintain that cheap
gold, and France happened to be the country which was in a very peculiarly
strong position, and the turning point came after she returned to gold.
But it would have come anyway.
We had one other illustration like this—the only one other in our history
of any comparable degree—and that was in the period of a semi-World War
experience, the Napoleonic Wars. At that time France was a leading
industrial nation of the world.
Senator Walcott.—You are going back to the period of assignats?
Mr. Warren.—Yes. France was one of the leading industrial nations of
the world, and she did much the same as Europe did this time, discontinued
to bid for gold and silver. At that time gold and silver were both commonly used. Both gold and silver lost value suddenly, and prices in the
United States, from 1790 to 1795, rose 46%. That was not due to the
world having discovered suddenly a great supply of gold and silver. It
was due to a portion of the world which had been using gold and silver
suddenly discontinuing to be in the market for them, and they lost value in
other countries. Prices in England rose 34%. . . . We were then
for a long Period on this high-price level. During the War of 1812, the
United States, for a short period, discontinued the metal standard. In
March 1817 we returned to the metal standard,but our prices were more
than 50% above the prices of 1790. when we were on that standard.
Points Out China Missed Inflation.
Then England started to return to the metal standard, and it took her
two or three years. She completed the process in 1821, and her prices
and ours both fell nearly to the level of 1790, from which there was no
recovery. There was a receovery when we found gold in California, but no
cyclical recovery.
There is one peculiar difference in the two situations, that in this war
only the gold-using countries discontinued bidding for their metallic base.
and only the gold-using countries had the inflation of 1914 to 1920. China
did not have the inflation of 1914 to 1920. Her prices, which had been
rising gradually for many years, continued to rise gradually during our
inflation of 1920. She did not have the inflation of 1929, but is right now
getting a little deflation. I have shown you elsewhere that silver has been
rising in value relative to gold. She is getting a little deflation now.
Senator Walcott.—Dr. Warren, it might be interesting to add to that very
interesting recital of yours that following the reign of the profligate Louis
and the Assignats, France was plunged into a reign of terror and the guillotine, caused by too much paper. The first proclamation that Napoleon
made was that they return to the specie payment. That is a pretty important observation.
Mr. Warren.—Yes.
Denies Inflation Is Likely.
Senator Walcott.—I am not suggesting that this bill does it, but is it not
a possibility that If the stabilization fund that is proposed should fail—
and I personally do not see how it could succeed in competition with the
combined forces of Europe—we might be drifting into a period of extreme
inflation, willy-nilly, of paper currency?
Mr. Warren.—The occasions of extreme inflation, so far as I have been
able to find them in history, have been preceded by governmental bankruptcy, and usually as the result of revolution, or extended war at the time.
If we should drift into wild inflation it would be a very unusual historical
occasion, unless we, previous to that, had had a revolution.
Senator McAdoo.—You mean a violent revolution or an economic
revolution?
Mr. Warren.—I mean violent revolution.
In the following testimony, Dr. Warren explained with the use of statistics, the effect of departure from the gold standard on prices in the United
States and other countries.
Mr. Warren.—The first point that I should like to call your attention to
is the type of price reactions we have been getting since February. For
example, in England the price of gold, taking the average of February and
the average of December. I mean the average of daily prices, increased 5%
and the average of the daily prices in this country increased 56%. It
was at a par in February of 56% above the par for December. This 56%
is not the RFC price, which is for limited quantities of gold, but is the London price and combined with the exchange rate in New York, so that it is
the price at which the gold could have been moved.
(Continuing after interruptions).—If you were an American selling foreign
countries you would find that the effective price which concerns you in
your transactions had gone up 56%. Now, cotton has gone up 6% in
England and 68% in New York. . .
Now,some persons think that if the price of gold rose, every commodity
should rise exactly the same, but there are other factors affecting prices.
Financial Chronicle
Volume 138
Cottonseed Oil dropped 29% in England, and rose 26% here; so that we are
getting a similar relationship in that connection, but not an equal rise.
Senator Byrnes.—What is your explanation of that?
Explains Discrepancies.
Mr. Warren.—The world supply of cottonseed oil and the demand for it,
compared with the supply of gold and the demand for it, with the result
that in gold cottonseed oil fell. If it had fallen exactly 56% in gold our
first guess would be that it would have been stationary in our money.
Wheat rose 8% in England and 51% here. Copper rose 10% in England
and 63% here. Tallow fell 7% in England and rose 50% here. Silver
rose 11% in England and 67% here. Silver rose just a trifle in gold; that
Is, silver is worth slightly more in gold than it was. There is one other
commodity that I did not put on this statement: Hams rose 38% in England
and only 21% here.
Senator Barkley.—Did you say the price of hams rose 38% in England?
Mr. Warren.---Yes, and 21% here in Amreica. It is not the same hams.
That is, I suppose it is not but lam not certain. This is because of restrictions in England, with a limitation on the importation of hams. . .
Of course the index number is much better than this in the case of individual
commodities, because you see they vary individually. And the index
number in England, which is one of the oldest, is the "Sauerbeck-Statist"
Index number. We have prepared an index number for the United States
which is as nearly like the "Sauerbeck-Statist" as we,could make it. .
Passing England's Index.
The price in currency according to the "Sauerbeck-Statist" index was 91
in February, and according to our index, which is like it. it was 69 here.
But by November prices in England had risen from 91 to 93, and here they
rose from 69 to 94 in currency.
Senator Barkley.—What does that represent as an average of all commodities?
Mr. Warren.—There are 45 quotations in there, which are basic commodities. It is a good representative list.
Senator Barkley.—In other words, it is a cross-section.
Mr. Warren.—It is a good cross-section of the largely basic commodities:
Such as coal, iron, copper, tin, lead, tea, coffee, sugar, wheat, and so on.
Now, according to the Federal Reserve bulletin, from February to
October—and these commodities are different and they are not shown on
the sheet—but according to the Federal Reserve bulletin, from February
to October, and I haven't the November figures, prices in France rose
2%. prices in Holland rose 1%, prices in Italy fell 4%. These countries
are on gold, and there is little change.
These two index numbers are shown on page 3, so that you can see that
a rapid decline occurred, beginning with 1929, in prices in both England and
In the United States. In 1931 England left the gold standard, and thereafter her prices were more or less stabilized. We continued on the gold
standard and our prices continued to decline. At a time when prices in
gold were rapidly falling. England left the gold standard and her currency
depreciated at about the same rate that gold appreciated. So she stood
about still. She did not get a rise in prices, but she was relieved from the
decline. She could have had a rise if she had depreciated her currency
more.
Senator Gore.—But she did leave the gold standard and her prices continued to fall.
Mr. Warren.—Her gold prices continued to decline up to this fall. We
left the gold standard in February, at a time when prices in gold were
declining only slightly, so we got a decided rise in currency prices, and
for November we were one point ahead of England.
Senator Kean.—But our prices are still declining in gold.
Commoditiesfor Seven Countries,
Mr. Warren.—Yes. The next page, being page 4 of my statement,
shows prices in gold. The lowest point in gold,and 1913 is shown at 100.
but the lowest point in gold for England was an index of 59 in October.
Our lowest point is an index of 59 in November. In 1926 these index prices
were: For England, 148—and that is not shown on the chart [this we omit.
—Ecid—and for the United States, 146. The latter figure happens to be
the same as the Bureau of Labor index number for the five years before the
war. It was in England 148 and in the United States 146, and then goes
to the low point which it has reached, 59, or each is just about 40%, at
the low point, of what it was in 1926. That is prices in gold.
575
I have a curve on page 5 which is the average of basic commodities for
seven countries, which is a little smoother than it would be for a single
country.
Senator Townsend.—What countries are they?
Mr. Warren.—The Netherlands, the United Kingdom, Sweden, Canada,
France, Italy and the United States. These are prices of basic commodities,
or largely so. The index number for the various countries varies. Sometimes they call it primary commodities, and sometimes they call it raw
materials, and so on, but it is generally basic. These prices have declined
with great rapidity for two years from 1929 to 1931. Since 1931 prices in
gold have declined but not with great rapidity— a moderate decline. As
we had two years of extremely rapid declines in gold,followed by a moderate
decline, it looks as if the appreciation in the value of gold which has been
going on rather slowly, or not nearly so rapidly as during the two years,
might be approaching the end. And we find these two index numbers
at about 40%•
Prices of All Up 18%.
On the next page, being page 6 of my statement, I have presented some
figures showing the changes in several things, and this is for the United
States: From February to December the price of gold rose 56%; the price
of 25 industrial stocks, according to the New York "Times' Index." rose
76%; the prices of 30 basic commodities rose 42%, and the prices paid to
farmers, as reported by the Department of Agriculture, rose 39%. The
prices, according to the Bureau of Labor index, of all commodities, rose 18%.
There is much misunderstanding about the Bureau of Labor index for
all commodities. When prices fall manufactured goods decline slowly
and sometimes not at all for several years. They would ultimately decline
to the old price level if given time. They are fairly stable. Then if prices
ofsome of them fall far and some not at all,some a little, if something comes
In which tends to raise prices it raised emphatically those which fell emphatically, but those which had not fallen are merely relieved from the
necessity of rising.
An index which is mixed, therefore, not having fallen all alike, because
there are many manufactured foods in which prices have not risen, and
because of many manufactured goods in which prices did not decline, that
Is a more even measure.
The cost of living in the United States from June to December rose 5%.
We do not know what it rose from February, because the figures are not
available. But in Massachusetts their index rose 1% up till June from
February. We can, therefore, guess that the cost of living in the United
States may have risen 6% since February. It did rise 5% since June.
Cites Outside "Elements."
Professor Warren explained that the cost of living did not rise in proportion to the rise in basic commodities for the same reason that it did not
decline in proportion to the fall in prices of basic commodities, because it
contained elements such as telephone bills, transportation charges, and
rent which were held more or less rigid. In December, he said, the cost
of living was 135, using 1913 as 100, while the index for basic commodities
was only 94.
Senator Wagner.—I would like to ask you one question. Whether commodity prices go up first or wages go up first, I am not so mush concerned:
but you agree that they must go up pretty well together.
Mr. Warren.—Yes.
Senator Wagner.—If they do not, we are inviting another recession?
Mr. Warren.—Yes. If either one gets far out of line with the other.
you are in trouble.
Senator Glass.—You mean, Doctor, that they could go up together;
you do not mean that they necessarily must go up together?
Mr. Warren.—In actual experience in the past, commodity prices have
run ahead of the wage increases by varying amounts. One factory.gets
an order and is doing very well and raises the wages of its employees. Another factory may not have any new orders at all. So you might say it
is a movement taking place In many spots. But the desirable thing is for
them to go together; there is no doubt about that.
Senator Wagner Recalls Crash Years.
Senator Wagner.—In 1927. 1928 and 1929, the time of the crash, do not
the figures indicate pretty definitely that commodity Prices and profits
went up very much faster than wages?
Mr. Warren.—Yes.
Senator Wagner.—That leads to difficulty?
Mr. Warren.—Yes; if they rise too much you get into difficulty.
Indications of Business Activity
THE STATE OF TRADE—COMMERCIAL EPITOME.
Friday Night, Jan. 26 1934.
There was a further expansion in general business, but it
was far from being evenly distributed over various parts of
the country. There was an unexpected decrease in steel
output of 1.7 points to 32.5% of capacity, but operations
were still above the comparative totals for 1932 and 1933.
There was also a decrease in oil production. Bank clearings,
however, were larger. Retail business was larger and there
was an increase in wholesale orders. Women's coats, dresses,
fur garments and shoes sold in larger volume at retail, but
the demand for men's clothing showed a falling off, particularly for overcoats. Retail sales in January thus far
of many stores were the largest in four years. In wholesale
markets dry goods sales continued to exceed those of the
same period last year and groceries were moving more
rapidly. Cotton was less active during the week and prices
showed a downward trend owing to the uncertainty regarding
the passage of the Bapkhead bill. Later in the week prospects for the passage of the Bankhead bill appeared more
favorable. A factor which helped to depress cotton also was
the announcement from Washington that Secretary Wallace
would not favor compulsory control unless a large majority
of farmers favored such a move. The grain markets declined
despite very bullish reports from the winter wheat belt and
dust storms in the Texas Panhandle and Kansas. Trading
was inactive and while selling was not particularly heavy,
neither was the demand. Wheat shows a decline forithe
week of 13 to 13
3 c.; oats, 7A to 1 Nc., and rye
4c.; corn, 4
2Y,c. Commodities generally showed firmness during the
week, but the upward trend was not very pronounced.
Flour continued in rather small demand and prices followed
those of wheat downward. Coffee shows a decline for the
week. Butter and eggs were firm. Lard was lower in
sympathy with grain and also because of heavy receipts of
hogs. Sugar was more active and higher on buying, inspired by the announcement of recognition of the present
Cuban regime by this country. Hides were dull, but prices
were firm. Leather was in better demand and firmer. The
new monetary program of the Administration helped to
increase trading in metal markets. Rubber was in better
demand and prima were higher on buying stimulated by
reports that an agreement had been reached by rubbergrowing countries at the Amsterdam conference.
The weather over most of the country the greater part of
the week was mild and mostly fair. The earlier part of the
week some of the northerly New England States were still
experiencing extremely cold weather. Rainfall has been
scattered and mostly light. To-day it was 29 to 41 degrees
here and fair. The forecast was for fair and warmer. Overnight at Boston it was 28 to 56 degrees; Baltimore, 38 to 70;
Pittsburgh, Pa., 28 to 52; Portland, Me., 22 to 44; Chicago,
Financial Chronicle
576
24 to 28; Cincinnati, 26 to 50; Cleveland, 26 to 50; Detroit,
24 to 40; Charleston, 58 to 64; Milwaukee, 18 to 26; Dallas,
40 to 56; Savannah, 60 to 72; Kansas City, Mo., 24 to
36; Springfield, Mo., 30 to 34; St. Louis, 32 to 36; Oklahoma
City, 30 to 34; Denver, 26 to 42; Salt Lake City, 20 to 32;
Los Angeles, 46 to 68; San Francisco, 56 to 72; Seattle, 48;
Montreal, zero to 38, and Winnipeg, 6 to 14.
Moody's Index of Staple Commodity Prices Continues
Advance.
Prime commodity prices continued moving forward, on
the average, Moody's Index of Staple Commodity Prices
closing the week at a slight advance at 133.5, the highest
figure since the middle of September.
Seven of the 15 commodities comprising the Index showed
net advances for the week, against five declines and three
which were unchanged. A gain or more than three-quarters
of a cent in rubber was the feature of the week, with hogs,
hides, steel scrap, silk, cocoa and wool tops also advancing,
while cotton, wheat, silver, copper and corn declined, and
sugar, coffee and lead were unchanged.
The movement of the Index number during the week,
with comparisons, is as follows:
Fri.
Jan. 19
Sat. Jan. 20
Mon. Jan. 22
Tues. Jan. 23
Wed. Jan.24
Thurs. Jan. 25
Fri.
Jan. 26
132.9
132.9
132.4
132.5
133.2
132.4
133.
2 weeks ago, Jan. 12
Month ago, Dec. 26
Year ago,
Jan. 26
1932 High, Sept. 6
Low, Dec. 31
1933 High, July 18
Low, Feb. 4
129.5
124.2
80.5
103.9
79.3
148.9
78.7
"Annalist" Weekly Index of Wholesale Prices Up During Week of Jan. 23 on Higher Prices for Livestock
and Meats-Fifth Consecutive Advance.
For the fifth consecutive week, the "Annalist" Weekly
Index of Wholesale Commodity Prices advanced, rising to
104.2 on Jan. 23 from 103.3, Jan. 16, and 81.3 a year ago.
Continuing the "Annalist," said:
As the dollar was practically unaltered (rising 0.2 cents to 62.4), the index
on a gold basis showed a corresponding change, rising to 65.0 from 64.3.
THE "ANNALIST" WEEKLY INDEX OF WHOLESALE COMMODITY
PRICES.
(Unadjusted for seasonal variation-1913=100).
Jan. 23 1934. Jan, HS 1934. Jan. 24 1933.
Farm products
Food products
Textile products
Fuels
Metals
Building materials
Chemicals
Miscellaneous
All commodities
a All commodities on gold basis
89.6
102.9
*120.2
140.3
105.3
112.1
99.0
87.9
104.2
65.0
87.5
102.8
z120.2
141.2
105.0
112.1
99.0
84.9
103.3
64.3
62.0
86.0
65.7
109.7
93.9
106.6
95.2
69.7
81.3
•Preliminary. z Revised. a Based on exchange quotations for France, Switzerland, Holland and Belgium.
The advance in the index was due to higher prices for hogs and cattle, the
Chicago hog average rising to $3.50 from $3.10, while the average of Chicago
heavy steers rose 50-cents to $6.19. Lambs and the meats also generally
advanced. Rye, coffee, hides, rubber, copper and lubricating oil were
other commodities that moved upward.
Cotton, on the other hand, dropped 10 points to 11.50, flour was down,
along with butter and eggs, and refinery gasoline, the latter reflecting increasing "hot" or illegal oil from East Texas. Crude prices have not been
affected, according to the ten-field average of the Oil Paint and Drug Reporter, which was unchanged at $1.197 on Jan. 19. That periodical reports
that it is estimated that 15% of the present East Texas production is illegal.
It is to be expected that the Federal Government will shortly take steps to
correct the situation.
DAILY SPOT PRICES.
Jan. 27 1934
months. Two groups declined while the three remaining groups showed
no change. The advancing groups were grains, feeds and livestocks,
textiles, metals, fats and oils, chemicals and drugs, fertilizer materials,
mixed fertilizers, agricultural implements and miscellaneous commodities.
The largest gain was shown in chemicals and drugs due primarily to increases in the price of alcohol because of the new Federal tax thereon.
Fifty-two commodities, the largest number in more than a month, advanced during the latest week while 19 commodities showed lower prices.
A week ago there were 37 advances and 13 declines. Two weeks ago there
were 33 advances and 14 declines. Important commodities that advanced
during the latest week were cotton, wheat, eggs, milk, cattle, hogs, cottonseed meal, lard, butter, foodstuffs,silk, bread, flour, steel, copper, silver,
coffee and rubber. Listed among the declining commodities were corn,
gasoline,cotton hose, potatoes,apples,oranges,tin. oak-flooring and burlap.
WEEKLY WHOLESALE PRICE INDEX-BASED ON 476 COMMODITY
PRICES (1926-1928=100.)
Per Cent
Each Group
Bears to the
Total Index.
Group.
23.2
16.0
12.8
10.1
8.5
6.7
6.6
6.2
4.0
3.8
1.0
.4
.4
.3
Foods
Fuel
Grains, feeds and livestock
Textiles
Miscellaneous commodities-.
Automobiles
Building materials
Metals
House-furnishing goods
Fats and oils
Chemicals and drugs
Fertilizer materials
Mixed fertilizer
Agricultural implements_ _ _ _
--
1.0734
1.0734
1.0644
1.08
1.0734
1.0634
107W
r•F
‘
Kg
X
11.60
11.55
11.50
11.65
11.60
11.50
II an
6
'7,7:13 66C!it.Co
m Co Ca 0,01 CO a
Jan. 16
Jan. 17
Jan. 18
Jan. 19
Jan. 20
Jan. 22
Jan 25
Corn.
Hogs.
U. S.
Basis.
Gold
Basis,
3.10
3.33
3.47
3.39
_ __
3:40
3.50
132.0
131.7
132.1
132.9
132.9
132.4
133.5
82.1
81.8
82.8
82.9
83.5
82.6
Sat
Cotton-Middling upland, New York. Wheat-No.2 red, new, c.i.f. domestic,
New York. Corn-No. 2 ye low, New York. Hogs-Day a average Chicago.
Moody's index-Dally Index of fifteen staple commodities, Deo. 31 1931=100:
March 1 1933=80,
Recent Gains in Wholesale Commodity Prices Continued During Week of Jan. 20 According to
National Fertilizer Association.
Wholesale commodity prices, during the week ended
Jan. 20, continued to gain according to the index of the
National Fertilizer Association. 'When 6omputed for the
week, this index advanced four points. This is the fourth
consecutive weekly gain in wholesale prices. During the
preceding week the index advanced five points and two weeks
ago it advanced two points. (The three year average 19261928 equals 100.) The latest index number, 69.5, is 17
points higher than it was a month ago and 126 points higher
that it was at this time a year ago. Under date of Jan. 22
the Association further reported:
During the latest week nine of the 14 groups in the index advanced. This
Is the largest number of groups that have advanced in a single week in many
Month
Apo.
Year
Ago.
70.8
67.7
51.8
69.4
68.2
84.9
78.9
79.0
85.2
45.7
93.0
66.8
74.0
92.3
71.1
68.0
50.1
68.6
67.8
84.9
78.9
78.7
85.2
44.3
88.2
66.5
72.8
90.8
69.1
68.4
46.4
66.1
67.4
84.9
79.0
79.2
85.2
38.6
88.2
65.6
72.8
90.8
55.8
55.2
36.7
42.6
60.5
86.9
71.0
66.9
77.3
41.3
87.3
60.5
66.0
91.7
nn
an 1
A7 A
56.9
a
REVENUE FREIGHT LOADED AND RECEIVED FROM CONNECTIONS
(Number of Cars.)
Loaded on Lines.
Weeks Ended.
Wheat.
Preceding
Week.
12% Increase Noted in Canadian Sales of Life Insurance During December Over December Year Ago.
In a summary of life insurance sales in Canada, the Life
Insurance Sales Research Bureau at Hartford, Conn.,
states that "sales for the month of December in the Dominion of Canada were 12% greater than for the same month a
year ago. Every Province with one exception and the Colony of Newfoundland showed substantial gains for the
month. Prince Edward Island showed a decrease of 10%."
The Bureau said that "sales for the year 1933 were 91%
of those for the year 1932. Every Province shared this
to last year."
general decrease when compared
--e-.
Revenue Freight ir Loadings for the Latest Week
Exceeded Corresponding Period Last Year by 12.1%.
Loadings of revenue freight for the week ended Jan. 20
1934 totaled 560,430 cars, an increase of 4,803 cars, or
0.8%, over the preceding week and 60,876 cars, or 12.1%,
over the corresponding period last year. It was, however,
a decrease of 1,671 cars, or 0.2%, below the corresponding
period in 1932. Total loadings for the week ended Jan. 13
1934 were 8.9% in excess of those for the week ended Jan.
14 1933.
The first 15 major railroads to report for the week ended
Jan. 20 1934 loaded 239,381 cars of revenue freight on their
own lines, compared with 236,547 cars in the preceding week
and 215,768 cars in the week ended Jan. 211933. With the
exception of the Atchison Topeka & Santa Fe Ry. and the
Gulf Coast Lines, all of these carriers showed increases over
the corresponding period last year. Comparative statistics
follow:
Moody's Index.
Cotton.
Latest
Week
Jan. 20
1934.
Atch. Topeka & Santa Fe Ry
Chesapeake & Ohio Ry
Chic. Burlington & Quincy RR.
Chic. Milw. St. Paul & Pacific Ry
Chicago & North Western Ry....
Gulf Coast Lines & subsidiaries
International Great Northern RR
Missouri-Kansas-Texas Lines---Missouri Pacific RR
New York Central Lines
Norfolk & Western Ry
Pennsylvania RR. System
Pere Marquette Ry
Southern Pacific Lines
Wabash Ry
Rec'd from Connections.
Jan. 20 Jan. 13 Jan. 21 Jan. 20 Jan. 13 Jan. 21
1934. 1934. 1933. 1934. 1934. 1933.
17,565
19,709
14,665
17,013
13.882
2,186
2,285
4,403
12,923
38,952
15,905
53,054
4,627
17,554
4,758
16,880
20,860
13,931
17,290
13,553
2,315
2,256
4,411
12,705
37,881
15,616
51,986
4,520
17,742
4,601
17,867 3.934 4,153 3,613
18,234 5,921 6,114 5,545
12,340 6,358 5,352 4,843
14,963 5,544 5,977 5,387
11,726 8,268 8,490 6.067
967
2,197 1,216 1,213
2,070 1,530 1,729 -1,762
4,352 2,499 2,508 2,032
12,859 6,795 7,020 6,131
34,539 53,638 54.923 47,625
14,654 3,276 3,172 • 3,150
46.693 29.816 29,941 27,512
4,020
.x
14,541
4,713 6,793 6,883 6,452
239,381 236,547 215.768 134.487 137,475 121,686
Total
Not available.
TOTAL LOADINGS AND RECEIPTS FROM CONNECTIONS.
(Number of Cars.)
Weeks Ended.
Illinois Central System
St. Louis-San Francisco Ry
Total
Jan. 20 1934.
Jan. 13 1934,
Jan. 211933.
25.154
12,293
24.599
11,785
23,685
11,155
37,447
36,384
34,840
Loading of revenue freight for the week ended on Jan. 13
totaled 555,627 cars, the American Railway Association
announced on Jan. 19. This was an increase of 55,688
cars above the preceding week, when loading was reduced
owing to New Year's holiday. It was also an increase of
45,734 cars above the same week in 1933, but a decrease
577
Financial Chronicle
Volume 138
of 17,022 cars below the corresponding week in 1932.
Details for the week ended Jan. 13 1934 follow:
Miscellaneous freight loading for the week of Jan. 13 totaled 184,256
cars, an increase of 13,405 cars above the preceding week, and 23,003 cars
above the corresponding week in 1933, but a reduction of 3,824 cars below
the corresponding week in 1932.
Loading of merchandise less-than-carload-lot freight totaled 158,330
cars, an increase of 23,963 cars above the preceding week, but 675 cars
below the corresponding week in 1933, and 28,293 cars below the same
week in 1932.
Grain and grain products loading for the week totaled 29,559 cars, an
increase of 6,170 cars above the preceding week, but 999 cars below the
corresponding week in 1933, and 1,448 cars below the same week in 1932.
In the Western districts alone, grain and grain products loading for the
week ended Jan. 13 totaled 19,229 cars, a decrease of 83 cars below the
same week in 1933.
Forest products loading totaled 18,146 cars, an increase of 3,268 cars
above the preceding week, 4,052 cars above the same week in 1933, and
49 cars above the same week in 1932.
Ore loading amounted to 3,218 cars, an increase of 392 cars above the
preceding week, 794 cars above the corresponding week in 1933, and
901 cars above the corresponding week in 1932.
Coal loading amounted to 137,036 cars, an increase of 6,663 cars above
the preceding week, 18,227 cars above the corresponding week in 1933,
and 17,915 cars above the same week in 1932.
Coke loading amounted to 7,295 cars, a decrease of 332 cars below the
preceding week, but 1,706 cars above the same week in 1933 and 1,333
cars above the same week in 1932.
Livestock loading amounted to 17,787 cars, an increase of 2,159 cars
above the preceding week, but 374 cars below the same week in 1933, and
3.655 cars below the same week in 1932. In the Western districts alone,
loading of livestock for the week ended Jan. 13 totaled 13,811 cars, a
decrease of 361 cars compared with the same week in 1933.
All districts reported increases for the week of Jan. 13 compared with
the corresponding week in 1933, but all districts reported reductions compared with the corresponding week in 1932 except the Eastern and Pocahontas, which showed increases.
Loading of revenue freight in 1934 compared with the two previous
years follows:
Week ended Jan. 6
Week ended Jan. 13
Total
1932.
1934.
1933.
499,939
555,627
439,469
509,893
571,678
572,649
1,055,566
949,362
1,144,327
In the following table we undertake to show also the loadings for the separate roads anl systems for the week ended
Jan. 13 1934. During this period only 35 roads showed
decreases as compared with the corresponding week last
year. Among the larger carriers showing increases as
compared with the same week in 1933 were the Pennsylvania
System, the Baltimore & Ohio RR., the New York Central
RR., the Chesapeake & Ohio Ry., the Norfolk & Western
Ry., the Louisville & Nashville RR., the Southern Ry.
System, the Union Pacific System, the Chicago Milwaukee
St. Paul & Pacific Ry., the Chicago Burlington & Quincy
RR., the Missouri Pacific RR., the Southern Pacific Co.
(Pacific Lines), the Chicago & North Western Ry., the
Reading Co. and the Erie RR.
REVENUE FREIGHT LOADED AND RECEIVED FROM CONNECTIONS (NUMBER OF CARS)-WEEK ENDED JAN. 13.
1934.
Eastern District.
Group ABangor & Aroostook
Boston & Albany
Boston & Maine
Central Vermont
Maine Central
New York N. H. & Hartford
Rutland
Total
Group BDelaware di Hudson
Delaware Lackawanna & West_
Erie
Lehigh & Hudson River
Lehigh & New England
Lehigh Valley
Montour
New York Central
New York Ontario & Western_
Pittsburgh & Shawmut
Pittsburgh Shawmut dr Northern
Total
Group C
Ann Arbor
Chicago Ind. & Louisville
Cleve. Cm. Chia. & St. Louis
Central Indiana
Detroit & Mackinac
Detroit & Toledo Shore Line_ _
Detroit Toledo & Ironton
Grand Trunk Western
Michigan Central
Monongahela
New York Chicago & St. Louis
Pere Marquette
Pittsburgh & Lake Erie
Pittsburgh & West Virginia_
Wabash
Wheeling & Lake Erie
Total Loads Received
from Connections.
Total Revenue
Freight Loaded.
Railroads.
1933.
1932.
1934.
1933.
1,872
3.383
7.094
943
2,748
10,082
548
1,717
2,894
6,628
504
2,333
9,181
502
2,150
3,058
8,011
616
2,556
11,185
534
229
4,483
10,314
2,149
2,349
12,597
1,029
245
3,974
8,109
1,852
1,939
9,419
758
26,670
23,759
28,110
33,150
26,294
6.270
9,935
12,413
137
1,658
8,699
1,081
18,553
2,115
423
404
4,503
7,616
10.393
146
1,231
7,164
1.498
17,407
2.034
382
291
4,491
8,416
11,322
136
1,416
7,121
1,518
19,055
1,894
444
376
6,806
5,386
12,334
1,892
1,095
6,265
17
26,999
2,369
28
224
5,081
4,075
11,297
1.578
755
5,645
31
21,718
1,811
26
235
61,688
52,665
56,189
63,415
52,252
533
1,496
8,475
51
241
245
1,055
2.939
5,615
3.746
4,186
4,178
3,177
1,076
5,242
2,391
930
1,382
10,303
58
69
2,990
1,441
6,515
8,842
171
7,928
4,520
4,085
630
6,883
2,204
837
1,403
9,654
41
79
2,329
1,092
5,501
7,281
118
6,714
4,027
3,866
477
5,996
1,478
407
1,211
6,972
25
216
156
1,910
2,919
5,565
4,171
3,517
4,520
3,319
926
4,601
2,819
376
1,327
7,567
16
176
200
1,001
2.877
5,266
3,173.
3.369
4,003
2,393
944
4,835
2,677
43,344
40,200
44,646
58,951
50,893
Grand total Eastern District__
131,702
116,624
128,945
155,516
129.439
Allegheny District.
Akron Canton & Youngstown-Baltimore di Ohio
Bessemer & Lake Erie
Buffalo Creek & Gauley
Central RR.of New Jersey
Cornwall
Cumberland di Pennsylvania._
Ligonier Valley
Long Island
c Penn-Read Seashore Lines...
Pennsylvania System
Reading Co
Union (Pittsburgh)
West Virginia Northern
Western Maryland
374
25.353
1,048
283
6.113
6
361
174
765
1,021
51,986
13,844
4,113
101
3,004
268
22,747
627
240
4,815
1
306
193
935
893
47.727
9,926
2,564
95
2,735
b
25,022
839
94
6.092
127
379
208
1,107
c
58,660
12.504
5,048
69
3.107
517
12,005
709
7
10.895
38
15
23
2,937
1,802
29,941
14,267
735
561
10,856
498
4
8,870
27
11
9
2,455
1,333
27,440
12,787
562
5.315
3,157
108,546
94,077
113,256
79,206
68.570
20,860
15,616
777
3,326
19,265
13,926
649
3,638
18,654
14.110
708
3,538
6,114
3,172
851
552
5.486
3,185
898
546
40,579
37,478
37,010
10,689
10,115
8,476
1,053
335
131
46
1.047
457
312
7,174
17,759
128
7.772
887
302
136
43
1,234
455
279
6,333
17,421
160
9,002
933
341
164
48
1,468
552
374
6.861
19,566
195
4,460
1.248
976
347
56
1,028
850
3,038
3,514
10.535
523
3.912
1.240
737
275
66
866
714
3,273
2.886
9.580
550
36.918
35,022
39.504
26.625
24.099
Total
Total
Pocahontas District.
Chesapeake & Ohio
Norfolk di Western
Norfolk & Portsmouth Belt Lln
Virginian
Total
Southern District.
Group .4Atlantic Coast Line
Clinchfield
Charleston & Western Carolina
Durham & Southern
Gainesville & Midland
Norfolk Southern
Piedmont de Northern
Richmond Frederick. & Potom_
Seaboard Air Line
Southern System
Winston-Salem Southbound_
Total
Railroads.
Group BAlabama Tenn. & Northern__
Atlanta Birmingham & Coast..
Atl.& W.P.-West. RR.of Ala
Central of Georgia
Columbus & Greenville
Florida East Coast
Georgia
Georgia & Florida
Gulf Mobile & Northern
Illinois Central System
Louisville dr Nashville
Macon Dublin & Savannah....
MississippiCentral
Mobile & Ohio
Nashville Chatt.& St. Louis
Tennessee Central
Total Revenue
Freight Loaded.
Total Loads Receive
from Connections.
1934.
1933.
1932.
202
656
640
3,090
202
987
713
290
1,142
17,254
16,276
76
119
1,611
*2,074
342
190
612
540
2,784
178
971
734
221
1,132
17,630
15,828
114
120
1,705
2,490
352
225
637
635
2,976
342
1,050
688
294
1,386
18.221
16,353
122
146
1,898
2,505
487
1934.
218
693
971
2.199
254
607
1,296
406
639
7,800
3,666
418
159
1,367
1,839
629
1933.
201
612
782
1,717
135
521
1,088
279
593
7,084
2,865
358
187
1,056
1,913
688
45,674
45,601
47,965
23,161
20,079
Grand total Southern District..
82,592
80,623
87,469
49,786
44,178
NorthwesternDistrict.
Belt Ry. of Chicago
Chicago & North Western
Chicago Great Western
Chic. Mllw, St. Paul dc Pacific_
Chic. St. Paul Minn.& Omaha_
Duluth Missabe & Northern...
DuluthSouth Shore & Atlantic
Elgin Joliet di Eastern
Ft. Dodge Des M.& Southern_
Great Northern
Green Bay & Western
Lake Superior & Ishpeming-Minneapolis & St. Louis
Minn. St. Paul & S. S. Marie..
NorthernPacific
Spokane di International
Spokane Portland & Seattle---
654
13,553
2,346
17,290
3,605
468
446
2,809
247
7.547
498
272
1.585
4.303
7,395
70
804
503
11,833
2,083
15,100
2,891
360
304
2,546
240
7.297
483
241
1,586
3,855
7,368
61
643
1,122
13.456
2,584
17,129
3,357
429
430
3,134
213
7,451
534
780
1,279
8.490
2,195
5.977
2,318
168
321
3.802
126
1,882
304
100
1,280
1,841
1,752
158
972
1,215
6,225
1.637
4,965
1,652
56
327
3,187
131
1,178
270
40
1,052
1.276
1,292
122
668
63,892
57,394
64,567
32,965
25,293
16,880
2,450
208
13,931
1,627
10,482
2,696
860
2,580
310
1,072
1,815
446
105
12,569
274
379
12,344
356
1,313
18.389
2,640
175
12,875
1,255
10,336
2,471
1,134
2,063
251
1,249
1,578
358
112
11,028
217
296
10.284
582
960
19,455
3,066
116
15.782
456
101
12,903
248
236
13.098
895
1,251
4,153
1,503
33
5,352
687
5,555
1,668
788
1,630
7
879
920
231
51
3,012
259
730
5,885
8
1,127
3,257
1.461
18
4,350
567
5,304
1,518
732
1.239
15
814
709
194
59
2,748
273
629
4,348
9
988
82,677
78,253
90,569
34,478
29,232
108
121
219
2,305
2.256
148
1,529
1,168
*321
87
578
89
4,411
12,705
43
146
7,188
2,058
5.173
3.712
1,251
23
93
165
193
2,610
2,084
134
1,253
1.004
318
275
608
42
4,373
12,565
44
132
7,477
2,117
5,071
3,401
1,467
21
122
173
296
a2,741
1,682
265
1,674
1,139
328
971
58
4,883
14,261
38
119
8,198
2,412
5.855
4.006
1.578
34
2,957
234
120
1,213
1,729
797
1.217
692
225
725
158
251
2,508
7,020
11
94
3,146
1,511
1,788
2,820
1,989
31
2.631
457
116
938
1,686
691
1,235
750
182
451
170
230
1,979
5,837
66
102
2,649
1,166
1,909
2,742
1.683
42
45,639
45,444
50,833
31.236
27,712
Total
Total
Central Western District.
Atch. Top.& Santa Fe SystemAlton
Bingham dr Garfield
Chicago Burlington & Quincy..
Chicago & Illinois Midland
ChicagoRock Island & Pacifle_
Chicago dr Eastern Illinois
Colorado & Southern
Denver ek Rio Grande Western_
Denver & Salt Lake
Fort Worth & Denver City....
IllinoisTerminal
Northwestern Pacific
Peoria & Pekin Union
Southern Pacific (Pacific)
St. Joseph & Grand Island
-.
Toledo Peoria & Western.....
Union Pacific System
Utah
Western Pacific
Total
Southwestern District.
Alton & Southern
Burlington-Rock Island
Fort Smith di Western
Gulf Coast Lines
International-Great Northern..
KansasOklahoma & Gulf
Kansas City Southern
Louisiana & Arkansas
Louisiana Arkansas dr Texas
Litchfield & Madison
Midland Valley
Missouri & North Arkansas_ Missouri-Kiuxias-Texas Lines..
MissouriPacific
Natchez di Southern
Quanah Acme dr Pacific
St. Louis-San Francisco
St.Louis Southwestern
Texas & New Orleans
Texas di Pacific
Terminal RR. Assn. of St. Louis
Weatherford Min.Wells & N.W
Total
1,696
4,494
7,758
12,704
2,899
1,777
3,030
715
1,837
a Estimated. b Not available. c Pennsylvania-Reading Seashore L nes Include the new consolidated lines of the West Jersey & Seashore RR.,former y part of
Pennsylvania RR..and Atlantic City nn., formerly part of Reading Co.: 1932 figures included in Pennsylvania System and Reading Co. •Previous week's figures.
Financial Chronicle
578
Life Insurance Sales During December Higher Than
in December 1932 in Six Sections of United States.
The trend in life insurance sales during 1933 has been
steadily upward and in December six sections of the country
showed gains over last December, according to the Life
Insurance Sales Research Bureau at Hartford, Conn., which
under date of Jan. 20 added:
At the close of the first quarter sales were 74% of the 1932 figure; in
the second quarter this percentage increased to 86%. During the summer
conditions continued to improve and in the third quarter sales were 95%
of the 1932 figure. For the fourth quarter of the year this comparison
showed that the volume was only 4% below the 1932 sales in the same quarter. The large amount of money being invested in life insurance is more
easily understood when it is realized that the average sales for every working day during 1933 totaled $23,000.000 of new life insurance. This figure
represents ordinary insurance only and does not include the thousands of
dollars being invested in annuities.
The figures below are interesting in showing the comparisons for the year
1933 and for the month of December compared to the same period last year.
In every section of the country the December figures represent a much better experience than for the year. Six sections of the country report increases over last December and approximately half of the companies reporting figures showed gains in volume during the month:
United States total
New England
Middle Atlantic
East North Central
West North Central
South Atlantic
East South Central
West South Central
Mountain
Pacific
December 1933
Compared to
December 1932,
98%
102
88
97
116
102
117
110
104
98
Year 1933
Compared to
Year 1932.
87%
93
84
87
90
87
96
91
84
84
These figures, prepared by the Life Insurance Sales Research Bureau, represent the experience of 79 companies
having in force 93% of the total ordinary legal reserve life
insurance outstanding in the United States.
Federal Reserve Board's Summary of Business Conditions in United States-Industrial Activity Increased in December for First Time in Four Months
-Factory Employment Lower.
The Federal Reserve Board, in its summary of general
business and financial conditions in the United States, based
upon statistics for the months of December and January,
states that "industrial activity, as measured by the Federal
Reserve Board's seasonally adjusted index, showed an
increase in December, following upon four months of
decline". In its summary the Board said that "factory
employment declined somewhat, while employment by public
agencies showed a considerable increase." The summary,
issued Jan. 26, also continued:
Production and Employment.
The Board's index of industrial production, which is adjusted to allow
for seasonal variation, advanced from 73% of the 1923-1925 average in
November to 74% in December. For the fourth quarter of 1933 as a whole
the volume of industrial output was 13% larger than for the corresponding
period of 1932. Activity in the steel industry,contrary to seasonal tendency,
increased considerably in December and there was also an increase in the
output of automobiles. Shoe production declined by an amount smaller
than is usual in December. At textile mills, activity declined further by
considerably more than the usual seasonal amount to about the low level
of last spring.
The number of employees at factories declined between the middle of
November and the middle of December by somewhat more than the usual
seasonal amount, reflecting chiefly reductions in working forces at cotton,
woolen and silk mills and at clothing factories. At automobile factories
there was a substantial increase in employment.
Value of construction contracts awarded, as reported by the F. W.
Dodge Corp., increased further in December and the first half of January.
There was a large increase in contracts awarded for public works and
private construction also increased. In the fourth quarter of 1933 as a
whole construction contracts in 37 States totaled $500,000,000 as compared
with $300,000,000 in the last quarter of 1932.
Distribution.
Freight car loadings, particularly of miscellaneous freight, declined in
December as compared with November by legs than the usual seasonal
amount. Dollar value of sales by department stores showed an increase
slightly larger than is usual for December.
Foreign Exchange.
The foreign exchange value of the dollar which had fluctuated around
64% of parity from the end of November to Jan. 13, declined to 62% on
Jan. 17, and subsequently advanced to a range from 62 to 63%.
Wholesale Prices.
Wholesale commodity prices, which had shown a slight decline between
November
and
the third week of December, advanced in the
the middle of
following month, reflecting chiefly increases in the prices of farm products
and foods. Cotton and grains showed marked increases and livestock prices
also advanced somewhat.
Bank Credit.-Ac the Reserve banks the seasonal return of currency from
circulation after the holiday demand amounted to about $250,000,000 from
the high point on Dec. 22 to Jan. 17. A large part of the funds arising from
this inflow of currency to the Reserve banks was added to the reserve
balances of member banks, with the consequence that these balances
increased by Jan. 17 to $900,000,000 in excess of legal requirements.
The return flow of currency from circulation and the reduction of balances
held by commercial banks for the United States Government were reflected
in an increase of demand deposits at reporting member banks. Loans of
the banks declined between Dec. 13 and Jan. 17. while holdings of United
States Government and other securities increased.
Short-term money rates in the open market, which had shown a slight
advance in December, declined in January to the previous level.
Jan. 27 1934
Monthly Indexes of Federal Reserve Board-Industrial
Production Increased from November to December
-Factory Employment Lower.
Under date of Jan. 26, the Federal Reserve Board issued
as follows its monthly indexes of industrial production,
factory employment, &c.:
BUSINESS INDEXES.
(Index Numbers of the Federal Reserve Board 1923-25=100).*
Adjusted for
Seasonal Variation.
1933.
Dec.
Industrial production, total
Manufactures
Minerals
Construction contracts, value_a-TotResidential
All other
Factory employment
Factory payrolls
Freight-car loadings
Department store sales
Without
Seasonal Adjustment.
1932.
Nov.
Dec.
574
p73
p85
561
514
599
71.8
73
71
81
48
13
76
72.4
66
64
76
28
9
43
60.6
62
P68
60
65
60
ss
1933.
Dec.
1932.
Nov.
p69
p67
580
548
512
p77
71.0
53.1
55
5119
Dec.
72
60
70
58
84
72
42
22
12
66
33
72.6 59.6
53.6 40.9
61
52
75
106
INDUSTRIAL PRODUCTION-INDEXES BY GROUPS AND INDUSTRIES.'
(Adjusted for Seasonal Variation.)
brining.
Manufactures.
Group and
Industry.
Industry.
1932.
1933.
1933.
Dec. Nov. Dec.
Iron and steel
Textiles
Food products
Paper and printingLumber cut
Automobiles
Leather and shoes...
Cement
Petroleum refining_
Rubber tires
Tobacco manufactures
61
578
86
32
p47
595
__
123
47
89
92
599
30
32
83
39
145
97
95
28
91
84
86
23
60
85
43
132
67
112
1932.
Dec. Nov. Dec.
Bituminous coal-_ p66
Anthracite coal
568
Petroleum
5119
Zinc
67
Silva
Lead
67
65
73
116
72
33
71
66
75
96
39
30
39
FACTORY EMPLOYMENT AND PAYROLLS-INDEXES BY GROUPS
AND INDUSTRIES.
(Underlying Figures Are for Payroll period Ending Nearest Middle of Month.)
Employment.
Group and Industry.
Payrolls.
Adjusted for Sea- Without Seasonal Without Seasonal
Adjustment.
sonal Variation.
Adjustment,
1933.
1932.
1933.
1932.
1933.
1932.
Dec. Nov. Dec. Dec. Nov. Dec. Dec. Nov. Dec.
Iron and steel
71.4 72.0 52.8 70.4 71.7 52.1 44.8 44.4 24.2
62.6 63.3 46.4 61.9 62.4 46.0 43.0 43.3 28.0
Machinery
78.8 82.7 70.4 79.6 83.7 71.1 58.1 63.0 46.4
Textiles, group
85.9 89.3 72.9 87.3 90.9 74.1 66.8 71.1 50.1
Fabrics
60.9 65.9 64.0 60.3 65.6 63.4 40.3 46.5 39.1
Wearing apparel
90.3 92.8 80.0 92.0 95.1 81.5 78.1 77.2 66.1
Food
91.2 91.2 80.2 92.8 92.4 81.6 77.2 75.6 69.8
Paper and printing
46.7 47.9 36.8 46.3 48.9 36.6 27.5 30.0 18.8
Lumber
54.7 50.7 47.4 51.3 47.9 44.8 40.2 38.0 33.8
Transportation equipment
66.9 56.4 51.6 58.6 50.1 45.2 43.3 37.3 32.0
Automobiles
77.2 75.8 72.0 75.2 75.4 70.0 54.4 53.3 42.0
Leather
53.3 52.8 42.6 51.9 53.2 41.4 32.0 32.8 23.3
Cement, clay and glass
62.3 65.2 47.4 61.6 64.4 46.8 46.2 47.2 30.1
Non-ferrous metals
100.4 99.8 75.2 100.6 100.3 75.4 78.8 78.2 59.8
Chemicals, group
90.7 89.4 76.3 89.6 88.6 75.4 72.5 72.9 62.8
Petroleum
83.4 85.3, 63.2 81.3 81.8 61.8 60.7 57.8 39.8
Rubber products
86.4 67.81 67.7 67.5 71.9 68.8 50.4 54.4 50.4
Tobacco
•Indexes of production, car loadings, and department store sales Woad on daily
averages. a Based on three-month moving averages, centred at second month.
p Preliminary.
Production and Trade Increased by More Than
Seasonal Amount in December and First Half of
January According to Conference of Statisticians
in Industry.
Increases in production and trade of more than seasonal
proportions were registered in December and the first half
of January, terminating the July-to-November succeision
of monthly declines, according to the current monthly report
of the Conference of Statisticians in Industry of the National
Industrial Conference Board. Advances were recorded
during the month in construction, industrial production, and
retail trade. Employment in manufacturing industries
turned upward in December, after a decline in November.
An announcement issued Jan. 22 quotes the report as further
saying:
Building and engineering construction was stepped up sharply during
December and continued to show gains in the first two weeks of January.
Industrial production advanced more than seasonally in December, although improvement was not common to all the major industries. Automobile production advanced sharply in December as compared with
November, but not as much as in the corresponding periods of the two
Preceding years. Steel production showed improvement in December and
the first half of January, after declining for four successive months. Bituminous coal output declined more than seasonally. Electric power production
showed seasonal advances in December and the first half of January.
Building and engineering construction in December continued the advances begun in August. Total contract awards of $207,210,000 were reported by the F. W.Dodge Corp.for 37 States east of the Rocky Mountains.
The November-to-December gain of 27.6% brought the dollar value of
awards to a level 155% above that of a year ago.
The increase in awards was due to a sharp gain in non-residential building
added to the continuing growth in lettings for public works and utilities.
Non-residential construction awards totaled $50,040,000 in December as
compared with $27,635,000 in November and $24,945,000 in December
1932. Factory construction increased sharply in December, and for the year
as a whole was twice as large as the total for 1932.
Awards for public works and utilities construction jumped to a total of
$133,270,000 in December from $111,080,000 in November. The advance
of 20% brought the dollar value of contract awards in this classification to a
Volume 138
Financial Chronicle
level almost 10 times as high as the total for April and more than three times
as high as the total for December 1932.
Production of automobiles in the United States and Canada, estimated at
83,200 units in December, compares with 66.195 units in November and
109,492 in December 1932. The December increase of 26% over November
compares with an average increase of 77% between the two months in 1931
and 1932.
Steel production advanced sharply in December as compared with
November after four preceding months of decline. The average daily output
of steel ingots of 72,786 gross tons compared with 59,265 gross tons per day
in November. The advance of 22.8% brought the average daily production
to a level 124% above that of a year ago.
Bituminous coal output, estimated at 29,600.000 net tons in December,
fell 3.2% under production in November to a level 6% under that of
December 1932. Output in the last two months of 1933 was up to seasonal
expectations, during the year as a whole total output estimated at 327,940.000 net tons was 5.9% greater than during 1932.
Electric power production in December showed a 1% advance over that in
November, with output averaging 1,614 million kilowatt hours per week.
The gain was approximately seasonal and brought the average weekly total
to a level of 6.7% above that in December 1932. Power production in the
first two weeks of January sustained the December advance.
Prices of commodities at wholesale in December showed a net decline
under the November average. The weakening of farm products and foods,
combined with losses in metals, chemicals, house-furnishing goods, and
miscellaneous commodities, more than offset the upturn in hides and
leather products, textiles, and metals and metal products. Fuel prices were
unchanged during the month as a whole. During the first half of January
the general average of commodity prices at wholesale advanced slightly
because of rebounds in prices of farm products, foods, and checmicals and
of continuing advances in hides and leathers, and textile products.
Prices received by farmers fell off 4% between the second weeks of
November and December, while prices paid by them for items of production and consumption increased almost 1%. As a result, the purchasing
power of farm products declined 5 to a level 42% under the level of the
years 1910 to 1914, but it was, nevertheless, 16% above the level of Dec. 15
1932.
Food prices at retail declined 2.5% from the middle of November to the
middle of December to a level 15% above the low of April of last year. The
index of combined food items was 5.5% above that of a year ago.
The cost of living fell 0.6% in December as compared with November,
which had registered the first monthly decline since April. A drop of 1.5%
in the price of food items in the wage-earner's budget, together with a
decline of 0.5% in clothing, offset an advance of 0.1% in the cost of fuel.
Rental costa and the costs of gas, electricity, and sundry items were stationary during the month. Total living costs in December were 8.1% above
April of last year and 2.9% above December 1932.
Commercial failures in December as compared with November declined
8.5% in number, but advanced 7.3% in liabilities involved. The movements
were favorable when compared with sharp advances which are generally
seasonal. Insolvencies in December both in number and liabilities were
less than half of what they were during the same month last year. In the
first two weeks of January commercial failures began their sharp seasonal
advance.
lb Manufacturing employment showed a slight gain in December after
falling off measurable in November. While average hourly earnings advanced slightly, a decline in hours worked per week brought average weekly
earnings down during the month.
Chain Store Sales in December Showed ExtraSeasonal Gains.
Chain store trade in December scored gains which were
probably the most impressive and most important thus far
witnessed, states the current review issued by "Chain Store
Age." Responding smartly to a vigorous renewal of public
buying induced by the holiday season, business enjoyed
extensive recovery in every division. Total volume for the
month expanded to an extent which not only took up the
slack of previous months but also established the highest
mark of sales activity since the recovery movement got under
way, continues the "Chain Store Age," which further adds:
As measured by the "Chain Store Age" index, the state of trade in the
chain store field in December rose sharply to 87.8 of the 1929-1931 average
for the month as 100, compared with 83.3 in November. The previous
high point for 1933 was 86.2 reached in July. The index for December
1932 was 79.0, having declined from 79.5 in November of that year.
The index for December 1933, incidentally, was the highest since April
1932, when the figure was 88.2, but at that time retail trade was on the
toboggan. Considering, therefore, that the broad extra-seasonal gains in
December 1933, were made on top of an already high plateau of business
improvement, chain store executives are disposed to interpret that showing
as a very favorable augury of future business.
Total average daily sales of the 19 chains covered by the index increased
to approximately $9,269,000 in December, from $7,256,000 in November.
Allowance is made in these totals for the number of business days. The
Increase between these two months was approximately 28%. Between
November and December 1932, average daily sales expanded from $6,923,000 to $8,333,000, or 20%, while during the base period 1929-1931,
the percentage expansion averaged about 21%.
One outstanding feature of the improvement shown in December, was
that unlike the situation in most other months, every group comprising the
index and very nearly every chain represented therein, shared in the accelerated business upswing. Another significant fact is that the gains were
pretty well distributed throughout the country.
The index figures for each group in December, compared with November
as follows: Grocery group. 83.0 as against 79.0; or double the gain during
the same period in 1932. 5- and-10 department store group,92.4 as against
90.6 in November. In 1932 the index for this group dropped to 77.6 in
December from 82.1 in November. Drug group, December index 107.7
against 92.6 in November. This figure was fractionally under the all-time
high for the past two years of 107.8 set in January 1932. Shoe group,
December index 97.2 as against 92.9 in November; apparel group, December index 87.6 as against 82.3 in November.
According to a study of chain store sales for 1933 made by
Merrill, Lynch & Co., investment bankers of this city, a
strong recovery was made by both the chain store and mail
order companies in the last six months of 1933. While
aggregate results of 27 chain store and two mail order com-
579
panies showed a decrease of 1.52% in 1933 over 1932, the
sales of the last six months of 1933 showed an increase of
6.66% over the corresponding six months of 1932. In the
first six months of 1933, the same 29 companies showed a
decrease of 10.07% over the corresponding months of 1932.
Merrill, Lynch & Co. further reported as follows:
Results for December 1933 were even more imposing than those for the
second half of the year. In December 1933, 27 chain store companies reported an increase of 9.52%, 2 mail order companies showed an increase of
22.66%, and the sales of the chains and mail order companies showed an
aggregate increase of 11.69% over December 1932.
The results for November 1933 of both chain store and mail order companies showed an increase of 7.89% over November 1932, while the results
of both chain store and mail order companies for December 1933 showed an
Increase of 19.68% over November 1933 compared with an increase of
15.61% in December 1932 over November 1932.
All groups showed an increase in December 1933 over December 1932 as
shown below. Following is the percentage of change of the groups for
December and the 12 months of 1933 over the corresponding period of 1932:
Dec. 1933. 12 Mos. '33.
10 Grocery chains
+2.41%
-6.15
8 5-and-10 cent chains
+12.79
+2.48%
4 Apparel chains
+30.43
+11.07%
2 Drug chains
+20.05
+1.407
2 Shoe chains
+21.66
+3.43
1 Miscellaneous chain
+23.17%
+9.0%
27 chains
2 Mail order companies
+9.52%
+22.66%
-2.46%
+3.77%
29 Companies
-1.52%
+11.69%
Attention is directed to the fact that 10 grocery chains, with an aggregate
volume of $130,847,032 in December 1933, showed an increase of 2.41%
over December 1932, while eight 5-and-10 cents chains, which rank next in
volume after the groceries showed a volume of $93,277,458, resulting in
an increase of 12.79% over December 1932. Two mail order companies
showed an aggregate volume of $59,504,330 in December 1933, which
represented an increase of 22.66% over December 1932.
Over very tangible evidence of recovery is the fact that the Great Atlantic
& Pacific Tea Co., which operates about 15,500 stores located all over the
country, reported an increase of 0.96% for the four weeks ended Dec. 30
1933 over the corresponding period of 1932, compared with a decrease of
1.26% for the previous five week period. It is understood that this is the
first monthly dollar volume gain reported by that company since September
1930, when 2.3% increase was reported. However, that increase was
followed by 39 months of uninterrupted decline in sales percentages.
Safeway Stores, Inc., which is the second largest grocery chain in point
of volume, showed the largest increase in dollar volume in December 1933,
amounting to $1,451,851, or 8.9% over December 1932. The grocery chain
showing the second largest dollar volume gain Was Kroger Grocery & Baking
Co., which showed an increase of $779,995, or 4.8%. Great Atlantic &
Pacific Tea Co.followed next with an increase in dollar volume of $614,957,
an increase of 0.96%. The fourth largest dollar increase in the grocery
chains, amounting to $430,455, was shown by First National Stores, Inc.,
an increase of 4.3% over December 1932.
In the 5-and-10 cent chain group the largest gain in dollar volume in
December was shown by F. W. Woolworth Co., amounting to $3.893.580,
or 11.7% over December 1932. S. H. Kress & Co. showed the second
largest gain in dollar volume, amounting to $2,113,232, or 22.7% over
December 1932. S. S. Kresge Co. showed the third largest dollar volume
increase in the 5-and-10 cent group, amounting to $1,681,332, or 9.3%
over the corresponding period of 1932.
J. C. Penney Co. lead the increase in dollar volume in the apparel group
with a gain of $6,882,519, or 36.3% over the results shown in December
1932.
Of the total increase of $10,994,226 in dollar volume shown by the
two mail order companies, $7,027,644 was accounted for by Sears, Roebuck
& Co., showing an increase of 25.6% over sales for December 1932. while
$3,966,582 was shown by Montgomery Ward, or an increase of 18.8%
over the corresponding period of 1932.
Third Consecutive Increase During Week of Jan. 13
Reported in Weekly Index of Wholesale Commodity
Prices of United States Department of Labor.
"The strengthening of wholesale commodity prices was
reflected in a 1% rise during the second week of January,"
said Isador Lubin, Commissioner of Labor Statistics of the
U. S. Department of Labor Jan. 19. "The present rise
shows the third consecutive advance in the weekly index
number. During the week of January 13, nine of the 10
major groups of commodities covered by the Bureau showed
increases, with only one group, housefurnishing goods, showing no change in average prices," he stated, continuing:
The index of the general level of wholesale commodity prices for the past
week was 71.7% of the 1926 average as compared with 71.0 for the week
ending Jan. 6. Present prices are at the same level that was recorded
during the week of Nov. 18 1933, when the high point for the past three
years was reached.
Present prices are 15%% over the corresponding week of a year ago,
when the general index registered 62.0 As compared with the low point
for the year 1933, the week ending March 4, when the index stood at 59.6,
the current index is up by 20%. The present level of prices is 25% under
the general average for the month of June 1929, when the wholesale commodity price index number registered 95.2
An announcement issued with regard to the index said:
Of the 10 major groups of commodities carried in the Bureau's index, the
food group showed the largest advance. They rose by 23,6% within the
week. Meat prices advanced sharply and showed an average increase of
6%. The cereal products group also contributed to the advance by rising
1%. Other food items showing increases in average price were butter,
cheese, fresh apples, coffee, eggs, raw sugar and lard. Only a few minor
decreases were reported for the group.
Market prices of farm products continued to show recovery and moved
upward 2% over the average for the previous week and 7% over the average
for three weeks ago (the week of Dec. 23 1933). With the exception of
barley and rye all grains showed a decided steadying of price. Cows.
hogs, live poultry, sheep, hay and flax seed are among other commodities
showing price advances.
The yi of 1% rise in the metals and metal products group was due to
recent advances in prices of motor vehicles. Further advancing prices for
580
Financial Chronicle
hides and skins and certain leather items caused the hides and leather
group to continue their rise. They advanced by 0.2 of 1%. The miscellaneous commodity group also showed fractional advances during the week.
Cattle feed was largely responsible for this advance.
Increasing prices for mixed fertilizers caused the chemicals and drugs
group to move fractionally upward to the level reached during the week
of Nov. 18, 1933, the high point for last year. Rising prices for certain
cotton textiles and other textile items, such as burlap, hemp and jute,
more than counterbalanced declining prices for knit goods and silk and
rayon and caused the textile products group to rise fractionally. The fuel
and lighting materials group and the building materials group also showed
minor advances during the week. The housefurnishing goods group remained at the level of the week before, showing no change in average prices.
The index number of the Bureau of Labor Statistics is composed of 784
separate price series weighted according to their relatvie importance in the
country's markets and is based on average prices for the year 1926 as 100.0.
The accompanying statement shows the index numbers of the major groups
of commodities for one year ago, for the low and high points of 1933 and
for the past two weeks:
INDEX NUMBERS OF WHOLESALE PRICES FOR WEEKS OF JAN. 14,
MARCH 4, NOV. 18 1933 AND JAN. 6 AND JAN. 13 1934.
(1926=100.0)
Week End ngJan. 14 Mar.4 Nov. 18
1933.
1933.
1933.
Jan.6
1934.
Jan. 13
1934.
All commodities
62.0
59.6
71.7
71.0
71.7
Farm products
Foods
Hides and leather products
Textile products
Fuel and lighting materials
Metals and metal products
Building materials
Chemicals and drugs
Housefurnishing goods
Miscellaneous
45.2
58.2
69.2
52.3
67.8
79.0
70.6
72.1
73.3
61.5
40.6
53.4
67.6
50.6
64.4
77.4
70.1
71.3
72.7
59.6
58.7
65.4
88.5
75.8
74.5
83.5
84.7
73.5
82.1
65.4
57.4
62.7
90.0
76.0
74.3
83.3
85.5
73.3
81.7
65.9
58.6
64.2
90.2
76.1
74.4
83.7
85.6
73.5
81.7
68.2
Weekly Electric Production 9.5% Higher Than a
Year Ago.
According to the Edison Electric Institute, the production
of electricity by the electric light and power industry of the
United States for the week ended Jan. 20 1934 was 1,624,846,000 kwh., an increase of 9.5% over the corresponding
period last year when output amounted to 1,484,089,000
kwh. The current figure also compares with 1,646,271,000
kwh. produced during the week ended Jan. 13 1934, 1,563,678,000 kwh. during the week ended Jan. 6 last and 1,539,002,000 kwh. during the week ended Dec.30 1933.
All of the seven geographical areas showed gains for the
week ended Jan. 20 1934 as compared with the same period
last year. With the exception of the New England and
Middle Atlartie regions, these were lower than the percentage gains for the week ended Jan. 13 1934 as compared
with the week ended Jan. 14 1933. The Institute's statement folows:
PER CENT CHANGES.
Major Geographic
Divisions
Week Ended Week Ended
Week Ended
Week Ended
Jan. 20 1934. Jan. 16 1934. Jan. 6 1934. Dec. 30 1933.
New England
Middle Atlantic
Central Industrial_ _ _ _
Southern States
Pacific Coast
West Central
Rocky Mountain
+10.0
+9.3
+13.0
+7.7
+2.0
+5.6
+18.2
+9.2
+8.6
+13.1
+10.4
+3.5
+8.8
+19.8
+8.7
+11.3
+13.0
+1.3
+3.4
+9.3
+19.1
+8.7
+6.2
+14.3
-3.7
+8.6
+4.3
+19.5
Total United States..
+9.5
+10.1
+9.7
+8.8
Arranged in tabular form, the output in kilowatt hours of
the light and power companies of recent weeks and by
months since and including January 1930 is as follows:
Week of-
1933.
Week of-
1932.
Week of-
1931.
1933 over
1932.
May 6 1,435,707,000 May 7 1,429,032,000 May 9 1,637,296,000 0.5%
May 13 1,468,035,000 May 14 1.436,928,000 May 16 1.654,303,000 2.2%
May 20 1,483,090.000 May 21 1,435,731,000 May 23 1,644.783,000 3.3%
May 27 1,493,923.000 May 28 1,425,151,000 May 30 1.601,833,000 4.8%
June 3 1,461,488,000 June 4 1,381,452,000 June 6 1,593,662,000 5.8%
June 10 1,541,713,000 June 11 1,435,471,000 Juno 13 1,621,451,000 7,4%
June 17 1,578.101,000 June 18 1,441,532,000 June 20 1,809,931,000 9,5%
June 24 1,598.136,000 June 25 1,440,541,000 June 27 1,634.935,000 10.9%
July 1 1,655,843,000 July 1 1.456,961,000 July 4 1.607,238.000 13.7%
July 8 1,538,500,000 July 9 1,341,730,000 July 11 1,603,713,000 14.7%
July 15 1,648,339,000 July 16 1,415,704,000 July 18 1,644,638.000 16.4%
July 22 1,654,424,000 July 23 1,433,990,000 July 25 1,650.545.000 15.4%
July 29 1,661,504,000 July 30 1,440,386,000 Aug. 1 1.644,089,000 15.4%
Aug. 5 1,650,013,000 Aug. 6 1,426,986,000 Aug. 8 1,642.858,000 15.6%
Aug. 12 1,827,339,000 Aug. 13 1,415,122.000 Aug. 15 1,629,011,000 15.0%
Aug. 19 1,850,205.000 Aug. 20 1,431,910,000 Aug. 22 1,643,229,000 15.2%
Aug. 26 1.630,394,000 Aug. 27 1.436.440,000 Aug. 29 1,637,533.000 13.5%
Sept. 2 1,637,317,000 Sept. 3 1,464,700.000 Sept. 5 1.635,623,000 11.8%
Sept. 9 1,582,742,000 Sept.10 x1,423,977,000 Sept. 12 1,582,267,000 11.1%
Sept. 16 1,6433,212,000 Sept.17 1,476,442.000 Sept. 19 1,662,660.000 12.7%
Sept. 23 1,638,757.000 Sept.24 1,490,863,000 Sept. 26 1,660,204.000 9.9%
Sept.30 1,652,811,000 Oct. 1 1,499,459,000 Oct. 2 1,645,587,000 10.2%
Oct. 7 1,646,138,000Oct. 8 1,506,219,000 Oct. 10 1,653.369,000 9.3%
Oct. 14 1,618,948.000 Oct. 15 1,507,503,000 Oct. 17 1,656,051,000 7.4%
Oct. 21 1,618,795.000 Oct. 22 1,528,145,000 Oct. 24 1,646,531,000 5.9%
Oct. 28 1,621,702,000 Oct. 29 1.533.028,000 Oct. 31 1,651.792,000 5.8%
Nov. 4 1,583,412,000 Nov. 5 1,525,410,000 Nov. 7 1,628.147,000 3.8%
Nov. 11 1,616,875.000 Nov.12 1,520,730.000 Nov. 14 1,623,151,000 6.3%
Nov. 18 1,617,249.000 Nov. 19 1,531,584,000 Nov. 21 1,655,051.000 5.6%
Nov. 25 1,607.546,000 Nov. 26 71,475,268,000 Nov. 28 1,599,900.000 t 5.9%
Dec. 2 71,553,744,000 Dec. 3 1,510,337,000 Dec. 5 1.671.466,000 J
Dec. 9 1,619.157,000 Dec. 10 1,518,922.000 Dec. 12 1,617,717,000 6.6%
Dec. 16 1,644,018,000 Dec. 17 1,563,384,000 Deo. 19 1,675,653,000 5.2%
Dec. 23 1,656,616,000 Dec. 24 1,554.473,000 Dec. 26 1,564,652,000 6.6%
Dec. 30 1.539,002,000 Dec. 31 1.414,710,000 Jan. 2 1,523,652,000 8.8%
1932.
1934.
1933.
2an. 6 1,563,678,000 Ian. 7 61.425,639,000 Jan. 9 1,619,265,000 9.7%
Jan. 13 1,646,271,000 Jan, 14 1,495,116,000 Jan. 16 1,602,482,000 10.1%
Tan. 20 1,624,846,000 Jan. 21 1,484,089,000 Jan. 23 1,598,201,000 9.5%
Jan. 28 1,469,636,000 Jan. 30 1,588,967,000
Fan. 27
Feb. 4 1.454.913.000 Feb. 6 1,588,853,000
Feb. 3
z Corrected figure. y Includes Thanksgiving Day. b Revised figure.
Jan. 27 1934
DATA FOR RECENT MONTHS.
Month of-
1933.
1932.
1931.
January __
February..
March
April
May
June
July
August
September.. _
October __
November
December__
6.480,897,000
5,835,263.000
6,182,281,000
6.024.855.000
6,532,886,000
6,809,440,000
7,058,600,000
7,218,678,000
6.931,652.000
7,094.412,000
6,831,573,000
7,011,736,000
6,494,091,000
6,771,684,000
6,294,302,000
6,219,554,000
6,130,077,000
6,112.175,000
6,310,667,000
6,317.733,000
6,633,865,000
6,507,804,000
6,638,424,000
7,435,782,000
6,678,915,000
7,370.687,000
7,184,514,000
7,180,210,000
7,070,729.000
7,286,576,000
7,166,086,000
7,099,421,000
7,331,380,000
6,971,644,000
7,288,025,000
Total
1930.
1933
Under
1932.
8.021,749,000 7.6%
7,066,788.000 10.1%
7.580,335.000 8.7%
7,416,191,000 4.3%
7,494,807,000 25.0%
7.239,697,000 al1.1%
7,363,730,000 al5.5%
7.391,196,000 a14.4%
7,337,106,000 a9.7%
7.718,787,000 a6.9%
7,270,112,000 a5.0%
6,566.601.000 --
77.442,112,000 86,073,969,000 89,467,099,000
----
a Increase over 1932.
Noie.-The monthly figures shown above are based on reports covering approximately 92% of the electric light and power industry and the weekly figures are
based on about 70%.
Decrease of 34 of 1% Reported by United States Department of Labor in Wholesale Commodity Prices
During December.
Wholesale commodity prices during December dropped
of 1%, according to an announcement made Jan. 20 by
Isador Lubin, Commissioner of Labor Statistics of the U. S.
Department of Labor. The index number for the month
receded to 70.8% of the 1926 average as compared with
71.1% for November. The announcement further said:
Between November and December decreases in prices were reported for
179 items, increases for 170. while in 435 instances no change took place.
Although price declines were reported for only one-fifth of the commodities
covered and affected only 4 of the 10 major groups, these were sufficiently
largo to offset the advances in other commodities and thus cause the total
index to move downward for the second consecutive month. Of the 179
Items showing decreases, more than 90 of them were farm products and
manufactured foods. Among the Important price declines which were
largely responsible for the drop in the index were 19% for hogs, 16% for
eggs. 14% for butter and cheese, 13% for lard,4% for meats,3% for sugar,
3% for flour, and minor declines in certain textile and fuel items.
For the seventh consecutive month current prices averaged higher than
those in the corresponding month in the year before.
The index shows an increase of more than 13% over prices of December
1932 when it was 62.6. The average is 18% higher than for the month
of February 1933, when prices had reached their low point with an index
of 59.8. As compared with June 1929. when the index stood at 95.2.
prices last month were lower by more than 25%•
The largest decrease was shown for the group of manufactured goods.
which fell by nearly 3% during the month. The index for the group is
1634% above February. the low point reached during the year, and more
than 7% higher than December of a year ago. Among the food items
which showed price decreases were butter, cheese, flour, macaroni, cured
and fresh beef, fresh and cured pork, sugar,lard, oleomargarine and cottonseed oil. Higher prices were reported for rice, lamb, mutton, mess pork
and coffee.
Wholesale prices of farm products showed the second largest price decrease, the group as a whole declining by nearly 2%. The index for the
group is 36% above February and about 26% higher than the corresponding
month of last year and within 73,5% of the high point reached in July of
the present year. Price decreases in this group were reported for barley.
rye, wheat, cows, hogs, eggs, oranges, hops and onions. Advances were
shown for corn, oats, steers, live poultry, fresh apples, hay, tobacco.
Peanuts, potatoes and wool.
Weakening market prices for cotton textiles, knit goods, silk and rayon
and woolen goods caused the textile products group as a whole to decrease
34 of 1%. Declines took place in prices for coal and gas, while prices for
coke advanced, with the petroleum products sub-group remaining at the
November level. The fuel and lighting materials group as a whole declined
only fractionally.
The hides and leather group with an advance of over 1% showed the
greatest increase of any of the 10 major groups of commodities. In this
group, leather, and hide and skin prices showed a decided market strengthening, while boots and shoes and other leather products declined fractionally.
The group of metals and metal products showed the second largest advance and increased by 1%. The rise was due to increasing prices of certain
agricultural implements and Iron and steel items. The index for motor
vehicles was unchanged, while the average of nonferrous metals and plumbing and heating fixtures declined.
The building materials group also registered a price advance. This group
increased by nearly 1%. Brick and tile, lumber, paint and paint materials,
and other building materials shared in the upward movement. Cement
and structural steel remained at the same level as for November.
The group of chemicals and drugs and the miscellaneous commodities
of 1%. The rise in the chemical
group showed increases of less than
group was due to a general strengthening of the more important commodities
included under this classification. This was particularly true of anilin oil
aluminum sulphate and sodium[compounds. Higher prices for crude rubber
and Pennsylvania cylinder oil were in the main responsible for the increase
for the miscellaneous group. No change in the general average of prices
between the two months was reported for the housefurnishing goods group.
Ray materials including basic farm products, pig tin, raw silk,,pig lead,
crude rubber and similar articles showed a decrease of nearlyil %. The
Present index, however, averagarmore than 18% higher than December,
a year ago. This group was 28% higher in December than in February
when the low point was reached. Semi-manufactured articles including
such items as leather, yarns, ironvand steel bars, wood pulpland similar
commodities advanced more than 1% to a level of 25% above aiyear ago
and have risen by 28% above the:February average.
Prices of finished products, which include a list of over 500 fully manufactured articles moved downwardlabout ji of 1% to a point fractionally
more than 9% over last December and to a level of 14% above the low point
reached in February.
0.11
The non-agricultural commoditierrgroup which includes all commodities
except farm products, declined ji of 1%. The group now stands 11%
over a year ago and 16% over the level for the month of February.
MP'
The combined index for all products, exclusive of farm producte.and
processed foods, advanced 3,5 of 1% between November and December.
It showed an increase of more than 12% over last December and 17%
over the low point reached in February.
Financial Chronicle
Volume 138
The index number which includes 784 commodities of price series weighted
according to their relative importance in the markets are based on average
prices for the year 1926.
INDEX NUMBERS OF WHOLESALE PRICES BY GROUPS AND SUBGROUPS OF COMMODITIES (1926=100.0)•
Groups and Subgroups.
All commodities
Farm products
Grains
Livestock and poultry
Other farm products
Foods
Butter. cheese and milk
Cereal products
Fruits and vegetables
Meats
Other foods
Hides and leather products
Boots and shoes
Hides and skins
Leather
Other leather products
Textile products
Clothing
Cotton goods
Knit goods
Silk and rayon
Woolen and worsted goods
Other textile products
Fuel and lighting materials
Anthracite coal
Bituminous coal
Coke
Electricity
Gas
Petroleum products
Metals and metal products
Agricultural implements
Iron and steel
Motor vehicles
Non-ferrous metals
Plumbing and heating
Building materials
Brick and title
Cement
Lumber
Paint and paint materials
Plumbing and heating
Structural steel
Other building materials
Chemicals and drugs
Chemicals
Drugs and pharmaceuticals
Fertilizer materials
Mixed fertilizers
Housefurntshing goods
Furnishings
Furniture
Miscellaneous
Automobile tires and tubes
Cattle feed
Paper and pulp
Rubber, crude
Other miscellaneous
Raw materials
Semi-manufactured articles
Finished products
Non-agricultural commodities
All commodities less farm products and foods
*Bata not yet available.
December
1933.
70.8
55.5
60.4
38.0
64.3
62.5
65.1
84.7
63.0
46.0
63.4
89.2
98.6
74.9
80.1
87.6
76.4
87.9
85.5
71.2
29.6
84.3
75.9
73.4
81.5
90.6
83.6
.'
1
s
51.6
83.5
85.1
83.6
90.9
66.6
72.5
85.6
85.7
91.2
88.0
77.5
72.5
86.8
88.6
73.7
79.2
59.0
68.1
69.9
81.0
82.9
79.3
65.7
43.2
60.3
82.5
18.0
79.0
61.9
72.3
74.8
74.0
77.5
Norember
1933.
71.1
56.6
61.3
41.2
64.3
64.3
67.2
85.8
61.7
48.2
66.4
88.2
99.0
70.1
79.3
87.9
76.8
88.0
86.0
72.5
30.4
84.4
75.8
73.5
81.8
90.7
83.2
93.8
94.6
51.6
82.7
83.7
81.5
90.9
68.0
73.7
84.9
84.7
91.2
86.5
76.3
73.7
86.8
88.4
73.4
79.2
58.4
67.8
68.5
81.0
82.8
79.4
65.5
43.2
63.5
82.5
17.5
78.4
62.4
71.4
75.2
74.2
77.2
December
1932.
62.6
44.1
31.7
38.7
51.3
58.3
59.5
61.7
52.8
49.4
66.1
69.6
83.8
41.7
59.2
81.9
53.0
62.5
51.7
49.3
29.3
54.2
66.6
69.3
88.7
80.2
75.3
104.1
96.5
45.0
79.4
84.5
78.8
93.0
48.3
67.5
70.8
75.1
81.1
56.5
68.1
67.5
81.7
80.1
72.3
79.7
54.7
63.1
65.6
73.6
74.7
72.7
63.4
44.6 .
37.1
73.0
6.8
81.3
52.1
57.7
68.4
66.5
69.0
Decrease of 6% Reported in Farm Wage Rates from
Oct. 1 to Jan. 1-Is Less Than Usual Seasonal
Decline.
The general level of farm wage rates stood at 81% of the
pre-war level on Jan. 1, which was 5 points lower than three
months earlier, 7 points higher than a year ago and 8 points
above the low point in April 1933, according to the quarterly report of the Bureau of Agricultural Economics issued
Jan. 17. The 6% decline in wage rates from Oct. 1 to Jan. 1
amounted only to about two-thirds of the usual seasonal
decline at that time of the year, the report noted, adding:
Farm wage rates actually increased during the period in several Southeastern States. Wage rates per day, without board, ranged from 75 cents
in Alabama to $2.35 in Massachusetts on Jan. 1, and averaged $1.21 for
the country as a whole.
The principal factor raising the level of farm wage rates over that prevailing on Jan. 1 1933 was the marked reduction in the supply of workers
available for hire. At 108.4% of normal on the first day of 1934. the supply
of farm workers was 3 points lower than three months earlier. about 19
points below a year ago and at the lowest level recorded since November
1930. The Federal Reserve Board index of factory employment(1923-25=
100) indicates a 15 point increase in men working in those non-agricultural
pursuits during the past year.
The demand for farm labor, on the other hand, was considerably higher
than a year ago on the first of this month. Although a seasonal decline in
demand was registered during the last quarter of 1933, the figures reported
by crop correspondents averaged 62.7% of normal on Jan. 1 1934 as compared with only 53.8% a year earlier. This advance was accompanied by
an increase of one-third in index of farm prices during 1933.
The number of hired workers actually employed on farms on Jan. 1 1934,
however, was the lowest reported during the 10 years covered by the records.
Farmers have reduced the number of paid employees to a level considerably
under that required to harvest the small crops of 1933. On farms of crop
reporters only 64 hired workers were employed per 100 farms on Jan. 1,
as compared with 105 workers three months earlier and 72 hired workers
per 100 farms a year earlier.
The ratio of farm prices to farm wages indicates that farmers were,
nevertheless, in a better position to hire hands on Jan. 1 than at any time
since last July. At 84% of pre-war on the first of this month, this ratio
was 2 points higher than on Oct. 1 and 15 points higher than on Jan. 1
1933.
Business in Far West Increasing Steadily, According to
Wells Fargo Bank & Union Trust Co. of San Francisco-Industrial Employment Rose 23.6% During
1933.
A steady rise is indicated in Pacific Coast business activity
during recent months, according to the Index of Western
581
Business, compiled by Wells Fargo Bank & Union Trust
Co., San Francisco. Western business measured by the
index finished 1933 at 69.4% of avcrage 1923-25 activity,
as against 67.2% in November and 59.7% a year ago. The
index further showed:
Business in the Far West had regained nearly all the ground lost since
the 71.8% peak established in July, and closed the year strikingly above
the 52.4% low level recorded in March. Analysis of recent gains in the
index reveal large increases in department store sales and bank debits,
and smaller increases in industrial production and freight carloadings.
In California,improvement has been particularly.marked, with industrial
employment and payrolls, agricultural income, retail and wholesale trade,
bank debits, freight carloadings and water-borne commerce all showing a
striking upward trend. The trend of automobile sales, which turned upward
last April, has been particularly good, with passenger car sales for the year
exceeding those of 1932 by 38.5% and commercial car sales increasing 23%
over those of the preceding year.
Industrial employment at the year end was 23.6% greater than at the
beginning of the year. Indicating that the betterment was not confined
solely to urban areas, growers received $289,395,000 for principal crops
during 1933, as against $248,847,000 in 1932.
Reported in Both Employment and Payrolls
in Manufacturing Industries from November to
December by U. S. Department of Labor-Six of
Sixteen Non-Manufacturing Industries Showed
Increased Employment and Ten Higher Payrolls.
Index numbers showing the trend of employment and
payrolls in manufacturing industries are computed monthly
by the Bureau of Labor Statistics of the U. S. Department
of Labor,from reports supplied by representative establishments in 89 of the principal manufacturing industries of the
United States and covering the pay period ending nearest;
the 15th of the month. These indexes of employment and
payrolls are figures showing the percentage represented by
the number of employees or weekly payrolls in any month
compared with employment and payrolls in a selected base
period. The year 1926 is the Bureau's index base year for
manufacturing industries, and the average of the 12 monthly
indexes of employment and payrolls in that year is represented by 100%. Under date of Jan. 18 the Bureau reported:
Decreases
Factory employment decreased 1.8% in December 1933 as compared
with November 1933 and payrolls decreased 1% over the month interval.
The index of employment in manufacturing industries in December 1933
was 70.1, compared with the index of 71.4 in the preceding month while
the payroll index in December was 49.8 compared with 50.3 in November
1933.
Comparing the level of employment in December 1933 with December
1932, the index is 20.2% above the level of that for December 1932 (58.3).
The December 1933 payroll index, compared with the December 1932 Payroll index (37.7) indicates an increase of 32.1% in payrolls over the corresponding month of the preceding year.
Employment in manufacturing industries has declined between November
and December in seven of the preceding 10 years for which information is
available. The decrease, however, of 1.8% in employment in December
1933 is slightly greater than the average decline of 0.8% between November
and December over the period 1923-1932. The decrease of 1.0% in payroll
in December 1933 is contrary to the average change in payrolls between
November and December over the preceding 10-year period, (an average
increase of less than 0.1 of 1%)•
These changes in employment and payrolls in December 1933 are based
on reports supplied by 18.015 establishments in 89 of the principal manufacturing industries of the United States. These establishments reported
3,125,093 employees on their payrolls during the pay period ending nearest
Dec. 15 whose combined weekly earnings were $56.352,943. The employment reports received from these co-operating establishments cover approximately 50% of the total wage earners in all manufacturing industries
of the country.
MANUFACTURING INDUSTRIES.
Increases in employment were reported in 25 of the 89 manufacturing
industries surveyed. Thirty-seven industries reported increases in payrolls
over the month interval. The most pronounced gains in both employment
and payrolls between November and December were in the automobile
industry, in which increases of 16.7% in employment and 16.3% in payrolls
were reported. These sharp increases reflect the increased operations in
automobile plants, marking the production of new models. The electric and
steam car-building industry reported a gain of 11.9% in employment and a
corresponding gain in payroll totals, and the agricultural inplement industry reported an increase of 9.2% in number of workers with larger gain
in earnings. Among the remaining 22 industries in which increased employment was reported,substantial gains in employment over the month interval
were reported in such important industries as shipbuilding (6%), hardware
(5.5%), engines-turbines-tractors (5.1%), cast-iron pipe (4.4%), book and
Job printing (3.8%) leather (3.5%), beverages (3.1%). and machine tools
(2.1%). While 64 industries reported decreased employment, a number of
the decreases were of seasonal character, the clothing industries regularly
reporting declines in employment at this time of year as do also the industries connected with building construction, 1.e., brick, cement, sawmills, millwork, and steam fittings. Other seasonal declines were reported
in the confectionery, Ice cream, baking, flour, shoe, paper box, stove, and
furniture industries. The most pronounced decline in employment over the
month interval (19.7%) was reported in the men's furnishing industry.
The stove industry reported a drop of 15.4% in number of employees, and
the radio and cement industries reported decreases of 11.6 and 11.3%.
respectively. Decreases in employment ranging from 10 to 10.6% were
reported in the shirt and collar, women's clothing, cane sugar refining,
and confectionery industries. The highly seasonal beet sugar industry
reported a decrease of 9% in employment denoting the slackening in
operations following the November peak activities. The furniture and clock
Industries reported decreases of 8.9% each, and the jewelry industry reported a decrease of 8.6%•
014
Other industries of major importance in which decreased employment was
shown were men's clothing (5.9%), silk (5.6%). sawmills (4.1%), woolen
goods (4%), cotton goods (3%), and iron and steel (1.3%). The iron and
Financial Chronicle
582
steel industry, however, reported a gain of 1.9% In payrolls, indicating
Improved operating time in a number of establishments.
INDEX NUMBERS OF EMPLOYMENT AND PAYROLL TOTALS IN
MANUFACTURING INDUSTRIES.
(12-Month Average 1926=100.)
Payroll Totals.
Employment.
Manufacturing Industries.
Dec.
1932.
Nov.
1933.
Dec.
1933.
Dec.
1932.
Nov.
1933.
Dec.
1933.
58.3
71.4
70.1
37.7
50.3
49.8
Food and kindred products
83.2
Baking
78.9
Beverages
63.9
Butter
93.8
Confectionery
86.4
Flour
82.8
Ice cream
61.9
Slaughtering and meat packing_ 86.2
Sugar, beet
201.1
Sugar refining, cane
74.7
Textiles and their products
71.3
Fabrics
73.8
52.4
Carpets and rugs
Cotton goods
75.2
Cotton small wares
78.8
Dyeing and finishing textiles_ 78.0
Hats, fur-felt
65.2
Knit goods
85.2
Silk and rayon goods
59.7
Woolen and worsted goods_ 71.5
Wearing apparel
65.2
Clothing, men's
• 65.0
Clothing, women's
63.8
Corsets and allied garments
98.3
Men's furnishings
69.5
Millinery
59.9
Shirts and collars
64.0
Iron and steel and their products,
not including machinery....
. 51.4
Bolts, nuts, washers & rivets- 61.5
Cast-iron pipe
29.0
Cutlery (not incl. silver and
plated cutlery) and edge tools 61.3
Forgings, iron and steel
53.4
49.8
Hardware
Iron and steel
52.1
Plumbers' supplies
46.1
Steam and hot-water heating
apparatus .fe steam fittings._ 34.0
Stoves
49.5
Structural & ornamental metal
work
40.0
Tin cans and other tinware.... 71.1
Tools (not incl. edge tools, machine tools, files and saws).- 61.1
Wirework
87.3
Machinery, not incl. transportation equipment
45.4
Agricultural implements
26.0
Cash registers, adding machines
and calculating machines_ _ _ 63.1
Electrical machinery,apparatus
and supplies
48.6
Engines, turbines, tractors and
water wheels
40.1
Foundry & mach.-shop prods_ 44.1
Machine tools
31.3
Radios and phonographs
70.4
Textile machinery and parts.._ 54.2
Typewriters and supplies
51.8
Nonferou.s metals & their prod'ts 53.1
Aluminum manufactures
47.5
Brass, bronze and copper prods. 51.0
Clocks and watches and timerecording devices
43.3
Jewelry
37.5
Lighting equipment
67.2
Silverware and plated ware
62.2
Smelting and refining-copper,
58.8
lead and zinc
Stamped and enameled ware--- 59.7
45.7
Transportation equipment
Aircraft
187.6
46.2
Automobiles
Cars, electric and steam railroad 20.0
13.9
Locomotives
Shipbuilding
66.8
49.5
Railroad repair shops
Electric railroad
65.9
48.2
Steam railroad
Lumber and allied products
36.6
Furniture
45.9
33.0
Lumber-Millwork
33.4
Sawmills
45.8
Turpentine and rosin
40.7
Stone, clay and glass products
23.8
Brick, tile and terra cotta
32.9
Cement
57.2
Glass
Marble, granite, slate and other
43.2
products
62.3
Pottery
Leather audits manufactures.- 69.3
89.0
Boots and shoes
Leather
70.7
79.5
Paper and printing
Boxes, paper
71.9
Paper and pulp
73.0
Printing and publishingBook and lob
72.7
Newspapers and periodicals_ 98.0
75.6
Chemicals
Chemicals
84.6
51.1
Cottonseed, oil, cake dt meal
Druggists' preparations
71.4
79.3
Explosives
43.5
Fertilizers
Paints and varnishes
65.7
Petroleum refining
62.5
146.9
Rayon and allied products
94.5
Soap
Rubber products
64.5
Rubber boots and shoes
58.9
Rubber goods, other than boots,
shoes, tires and inner tubes... 83.6
Rubber tires and inner tubes
58.3
Tobacco manufactures
70.8
Chewing and smoking tobacco
and snuff
86.8
88.8
Cigars and cigarettes
101.5
88.2
136.6
102.7
98.1
96.0
69.8
107.8
289.1
91.8
83.7
90.3
77.0
98.8
90.2
92.6
71.0
92.4
65.3
88.4
68.1
71.3
63.0
98.2
66.1
60.5
69.7
98.5
88.9
140.8
101.1
87.7
94.0
66.2
106.8
263.1
82.2
79.7
86.7
71.6
95.9
85.6
91.3
69.3
86.8
61.6
84.9
63.0
67.1
56.6
97.4
53.1
59.7
62.7
64.9
64.6
50.8
73.6
63.7
66.6
47.0
68.1
111.9
61.2
44.8
49.6
31.0
49.9
54.7
53.3
41.5
59.3
38.5
51.7
35.3
30.7
36.0
76.6
40.7
35.3
41.4
80.4
72.3
118.6
76.8
73.8
74.5
52.0
85.7
204.1
69.1
61.2
69.9
54.3
81.4
67.0
68.4
48.9
74.9
49.3
66.0
44.1
46.2
40.4
70.5
44.8
35.5
55.9
81.2
71.7
126.8
74.6
71.4
74.7
49.8
91.8
175.6
61.3
56.7
65.8
48.7
77.1
64.4
66.0
45.3
66.5
45.5
65.4
38.8
39.2
35.8
72.4
33.7
35.2
47.4
70.9
85.9
33.4
69.8
82.8
34.9
24.2
33.7
14.8
42.9
57.9
19.4
43.3
54.9
22.5
78.5
83.1
55.0
73.8
68.8
76.7
84.4
58.0
72.9
65.6
39.3
27.8
25.0
21.9
21.1
54.3
54.0
30.5
43.6
34.3
55.1
56.8
35.3
44.4
34.0
45.4
80.3
43.8
68.0
19.0
25.8
27.8
50.4
27.9
39.3
50.0
84.9
49.4
87.4
21.8
42.5
32.6
50.9
31.4
55.5
83.3
122.5
83.2
123.0
34.7
52.8
53.8
92.1
54.5
99.5
64.1
40.4
63.1
44.1
27.0
18.0
43.5
35.2
42.9
39.3
86.7
87.2
45.6
70.4
72.1
62.8
61.7
32.5
46.8
44.9
58.5
59.4
51.2
169.3
89.5
, 87.7
70.1
63.0
69.8
61.5
58.2
52.3
149.6
86.6
89.8
67.7
62.4
67.2
25.0
23.3
18.8
60.9
34.6
32.1
33.6
29.0
29.6
38.6
36.5
36.2
131.9
68.1
65.2
50.2
42.1
46.5
42.7
36.1
37.8
112.6
64.5
71.0
48.4
41.0
46.3
52.7
44.6
85.5
80.6
48.0
40.7
85.2
76.8
28.4
26.8
46.6
37.8
44.6
33.0
62.1
56.7
38.8
30.2
64.0
52.9
86.7
71.0
51.3
260.7
51.3
21.9
20.2
76.1
50.8
64.0
49.8
49.1
59.0
38.7
47.0
62.8
50.4
28.9
37.8
81.7
84.2
69.7
58.7
259.9
59.9
24.5
18.7
80.6
49.7
64.1
48.6
46.0
53.8
37.8
45.1
66.9
49.1
26.8
33.6
82.4
37.7
34.6
31.4
193.5
31.1
11.6
9.6
51.5
39.0
54.5
37.8
18.8
23.8
18.3
15.8
37.4
23.9
9.9
17.2
38.4
55.2
53.4
36.4
239.3
36.3
12.7
13.5
57.0
42.1
51.7
41.4
29.8
34.2
23.2
29.0
52.3
31.0
13.4
21.2
59.2
51.9
51.2
41.5
231.0
42.2
14.2
12.1
60.1
40.9
52.3
40.0
27.5
30.4
23.0
26.6
56.4
30.2
12.4
17.6
60.5
41.0
74.2
74.8
71.8
86.8
90.2
88.4
93.1
39.6
74.2
74.6
70.8
89.9
90.5
83.6
92.0
28.1
36.9
40.7
37.2
53.1
64.9
58.0
46.7
22.5
48.1
51.7
46.5
69.8
70.3
72.2
62.0
22.1
46.8
52.7
46.6
74.2
71.8
69.4
81.4
74.5
105.8
98.1
121.9
54.6
82.4
106.3
72.0
77.8
73.4
197.7
112.1
87.1
69.9
77.3
107.3
97.3
121.3
52.3
83.4
103.3
75.1
77.0
74.2
191.8
106.9
84.6
70.4
59.3
85.8
59.7
59.8
44.3
70.9
51.7
30.4
49.3
51.8
122.5
79.2
40.6
48.9
59.0
87.2
76.9
88.3
50.9
81.8
74.6
44.2
58.9
60.1
172.9
91.6
58.0
61.7
62.7
89.1
77.2
87.9
47.5
82.0
70.4
48.1
59.4
59.8
174.5
88.2
59.2
63.3
117.2
79.8
73.9
108.5
79.1
69.5
56.3
33.3
53.5
76.9
50.8
57.8
72.7
53.5
53.6
89.8
71.9
87.8
67.2
69.4
51.6
72.3
56.0
73.8
51.2
General index
NON-MANUFACTURING INDUSTRIES.
Increased employment in December, as compared with November, was
reported in 6 of the 16 non-manufacturing industries surveyed monthly
by the Bureau of Labor Statistics and increased payrolls were reported
In 10 industries. The most pronounced percentage gains in employment
and payrolls over the month interval were shown in retail trade. Reports
received by 19,062 retail establishments indicated a net increase of 15.1%
In employment and 10.6% In payrolls in these establishments between
Jan. 27 1934
Nov. 15 and Dec. 15. These pronounced percentage gains are due largely
to seasonal fluctuations in the group of retail establishments composed of
department, variety, general merchandise stores and mail order houses, in
which the Christmas trade resulted in an increase of 23.1% in employment
and 17.6% in payrolls. The remaining retail establishments surveyed
showed a gain of 1.2% in employment over the month interval combined
with an increase of 0.7% in payrolls. The crude petroleum producing
Industry reported gains of 3.8% in employment and 5.7% in payrolls, and
the hotel industry increases of 2.4% in number of workers and 4.2% in
payrolls. The bituminous coal mining and the telephone and telegraph
Industries both showed increases in employment of 0.8% combined with
smaller gains in payrolls, and the metalliferous mining industry an increase
of less than 0.1 of 1% in employment combined with an increase of 2.6%
In payrolls.
The most pronounced declines in employment and payrolls in the group
of non-manufacturing industries were seasonal declines. The canning
Industry reported decreases of 28.7% in employment and 23.2% in payrolls.
The building construction industry reported seasonal decreases of 18.3%
and 20.8% in employment and payrolls, respectively. These declines in
building construction are based on reports supplied by 10,009 contractors
employing 60,689 workers in December 1933, and do not include reports
of building contractors engaged on PWA projects. The quarrying and
non-metallic mining industry reported a seasonal decrease of 11.3% in
employment and 13.7% in payrolls. Employment in the anthracite
mining industry decreased 10.6% between November and December and
the dyeing and cleaning industry reported a decline, largely seasonal, of
7.3%. The power and light industry shows a fall of 1% in employment.
In the remaining four industries in which decreases in employment occurred
(electric railroad and motor bus operation, wholesale trade, banks-brokerage-Insurance-real estate and laundries) the decreases were 0.3 of 1% or less.
The 16 non-manufacturing industries surveyed, together with the percentages of change over the month interval and the index numbers of
employment and payrolls, where available, are shown in the table below.
The monthly average for the year 1929 was used as the index base or 100
In computing the index numbers of these non-manufacturing Industries,
as information for earlier years is not available from the Bureau's records.
INDEXES OF EMPLOYMENT AND PAYROLL IN NOVEMBER AND
DECEMBER 1933, TOGETHER WITH PERCENTAGES OF CHANGE
BETWEEN NOVEMBER AND DECEMBER 1933, IN NON-MANUFACTURING INDUSTRIES.
Industries.
Indexes of
Employment. Per Cent
of
(Avg.192100)
Change.
Dee.
Nov.
1933. 1933.
54.5 --10.6
61.0
Anthracite mining
75.4
+0.8
74.8
Bituminous coal mining
40.6
40.8
+(a)
Metalliferous mining
Quarrying and non-metallic
45.3 -11.3
51.1
mining
+3.8
75.0
Crude petroleum producing-- 72.2
+0.8
69.4
68.9
Telephone and telegraph
-1.0
81.8
82.6
Power and light
Electric railroad Az motor bus
-0.2
70.8
operation & maintenance.._ _ 71.0
-0.2
83.3
83.4
Wholesale trade
+15.1
105.4
91.8
Retail trade
+2.4
77.6
75.8
Hotels
49.4 -28.7
69.3
Canning and preserving
-0.1
75.2
75.3
Laundries
-7.3
76.3
82.4
Dyeing and cleaning
Banks, brokerage, insurance
-0.3
99.3
99.6
and real estate
(y) -18.3
(r)
Building construction
(a) Less than 0.1 of 1%. y Indexes not available.
Indexes of
Payroll Totals. Per Cent
of
Avg.1929=100)
Change.
Nov.
Dec.
1933. 1933.
47.8
50.7
25.6
44.3
50.8
26.2
-7.2
+0.2
+2.8
28.3
50.3
67.7
74.5
24.4
53.2
67.7
74.4
-13.7
+5.7
+0.1
-0.1
59.4
64.1
72.6
55.2
50.8
57.9
55.4
59.6
64.5
80.3
57.6
39.0
58.3
50.0
+0.3
+0.6
+10.6
+4.2
-23.2
+0.6
-9.8
86.1
(y)
87.4
(r)
+1.5
-20.8
Bank of America (California) Finds Far Western Business During December at Highest Level in 20
Months.
Ending the most eventful year in a generation with a decided upturn, the Bank of America (California) Index of
Far Western Business registered 64.7 (preliminary) in December, the highest point reached in the past 20 months.
The December index number represents an advance of 10.9
points over the record low of March, when the index dipped
to 53.8,an announcement issued in the matter said, adding:
A quick recovery was recorded with the figure of 56.5 in April, after which
the index climbed steadily during the harvest season and closed the year
with a vigorous upturn, reflecting a brighter outlook throughout the
Pacific and Rocky Mountain States.
Based on carloadings, bank debits and power production, the Bank of
America index is weighted and adjusted for seasonal fluctuations and trend.
It covers California, Washington, Oregon, Nevada, Idaho, Utah and Arizona. Virtually every section reports increases in the number of persons
employed and a decided change in general business, with actual profits
supplanting month-by-month deficits.
A revival of the gigantic California wine industry already has contributed
Importantly to the welfare of the West with a revenue of many million
dollars over a few months' time. Meanwhile, the extensive and varied
mining industry, the highly important petroleum industry, shipping,
lumber, general construction and a score of other great industries, are becoming stable and showing a new vigor that promises better times In 1934.
by C. W. Young & Co. Indicates Improved Business Conditions Are Looked for in First Six Months
of 1934 by Businessmen in Most Parts of Country.
That a majority of well-informed business men in most
parts of the country expect a gradual improvement in business conditions during the first six months of 1934 is indicated by the results of a mail survey completed on Jan. 18
by C. W. Young & Co., investment managers. The survey
was based on a questionnaire sent to representative manufacturers, bankers, trade association executives and farm
organization officers located in approximately 200 important
industrial and agricultural communities throughout the
country. Following are the questions asked and summaries
of the replies received:
Survey
1. Has the spendable income of your community increased materially
and if so, is it being reflected in retail sales?
Commenting on the results of the survey, a statement by
C. W. Young & Co. said:
Many writers felt that banking difficulties and difficulty in obtaining
adequate credit were among the major obstacles to capital expenditures
rather than lack of confidence. Others expressed the belief that business
recovery is still being retarded by fear due to a general feeling of uncertainty
concerning the future economic policy of the Administration.
A powerful factor in dispelling this fear would be a direct statement
from the President, assuring the country in unmistakable language of the
continuance of the profit system.
Business Conditions in Canada, According to Bank of
Montreal-Improvement of Latter Months of 1933
Continuing.
In its "Business Summary" of Jan. 23 the Bank of Montreal states that "better business conditions prevailing in the
latter months of last year have continued. Restoration of
confidence was manifested in a volume of holiday business
that much exceeded expectation,"the Bank says,"and there
is a gradually widening circle of trade and industrial activity, in sharp contrast with the situation a year ago."
We further quote in part from the "Business Summary" of
the Bank of Montreal:
Reduction of inventories in the period of depression, producing low
stocks in mill, warehouse and shop, supplies a basis for enlarged output and
distribution, to which is added the buying incentive of greater stability in
commodity prices, with rising tendency. Improved conditions in other
countries of the Empire and in the United States are helpful to Canada,
which needs foreign markets for many of her natural products; both exports
and imports grow in volume and value.
In forest industries remarkable improvement has occurred. Mining
operations are on a large scale, car loadings are heavier, imports of raw
materials of manufactures, notably raw cotton, are extensive, bank clearings
and bank debits expand, consumption of hydro power grows, newsprint
production is larger, motor cars are being made in greater number, iron and
steel industries have begun to participate in the improved state of trade,
Dominion Government revenues have ceased to decline and are now rising,
and building construction shows sign of revival.
There is, however, still need of betterment in agricultural conditions
before the farming class is again set upon its feet. The price of wheat is
higher than a year ago, but is still below the cost of production and the
export movement is sluggish.
Canada's position in its financial relations with other countries has
become much easier. Preliminary figures issued by the Dominion Bureau
of Statistics show that for 1933 credit balances for commodities, gold and
the tourist trade, amounting in all to $298,000,000. were more than sufficient to meet net debits for interest, freight and exchange totaling $249,000,000. With minor invisible items showing a net debit of $8,000.000,
total net credit, exclusive of capital, was approximately $40,000.000. This,
plus an estimated net credit of nearly $62,000,000 representing capital
inflow, makes a total of $102,000,000, for which no debit items appear.
The upturn in Canada's external trade which began six months ago
continues, imports in December showing an increase of $6,406,000 and
domestic exports an increase of $8.313,000 over the corresponding month
of the previous year. In the calendar year 1933 total imports amounting to
$401,254,000 were $51,360,000 less than in 1932, but exports of Canadian
produce rose to $531,474,000. being $37,665,000 in excess of 1932. Including
exports of foreign merchandise there was a favorable balance of trade last
year of 3136,254,000 against an unfavorable balance of $103,019,000 in
1930, a notable reversal in this short period. The quantity and value of
newsprint exported increased in December over the preceding year and the
expansion in export of nickel continues to feature the trade figures. Notable,
too, is the improvement in the lumber trade, the export of planks and
boards in December having been nearly treble that of the same month in
1932. For eight months past there has been continuous increase of domestic
exports, in which all staple commodities except wheat have participated.
While recovery in the import trade has not been so marked, gradual expansion has occurred during the second half of 1933, the largest being in
December when the increase was 22% over 1932.
Farmer Received Larger Share of Consumer's Dollar
During 1933-Received 36 Cents as Compared with
33 Cents in 1932.
A small but definite beginning was made in 1933 toward
returning to the farmer a larger share of the consumer's
dollar spent on 14 important foods, Dr. Fred C. Howe,
Consumers'Counsel of the Agricultural Adjustment Administration reported Jan. 12 in releasing the ninth issue of the
"Consumers' Guide." In 1932 the farmer got 33 cents of
this consumer-dollar. In 1933 his share had increased,
but only to 35 cents. Dr. Howe further stated:
583
Financial Chronicle
A long pull is still ahead of us to bring the farmer's share of our food
dollars back even to the 1929 level when he was getting 47 cents and processors and distributors were getting 53 cents per dollar. There are two
ways of accomplishing this: One, to increase farm prices faster than retail
prices; two, to reduce the costa of processing and distributing.
During the year just ended we have made some progress in the first of
these directions. The price consumers had to pay for typical monthly
purchases per family of these 14 foods decreased from $16.78 in 1932 to an
average of $16.44 in 1933, but the equivalent farm price advanced from
$5.54 in 1932 to $5.81 in 1933.
These consumer and farm prices are averages for the year. Changes
were much more marked during the last half of the year than the first.
Retail prices dropped until June. From August to December they were
fairly stationary. In December there was a marked drop. Farm prices
declined from the first of the year until May. They reached their peak
in August. Since then there has been an irregular decrease.
T e situation at the end of the year showed that increases in processors'
and distributors' margins were much greater than advances in farm prices.
Comparing farm and consumer prices in December of both 1932 and 1933,
the cost to consumers of the typical month's purchases per family of the
14 foods covered had increased 89 cents, farm values 23 cents. Processors'
and distributors' margins, on the other hand, went up 66 cents. The
farmers' share of the consumers' dollar on both dates was 35 cents.
Dr. Howe calls consumers' attention, in this issue of the
"Consumers' Guide," to the importance of checking on
local weights and measures laws and enforcement, "one of
the most valuable jobs consumer groups can do in any community to ensure getting fair measure for their money."
He describes some services the alert Washington Department
of Weights and Measures have given consumers in the capital
which saved them hundreds of thousands of dollars.
A composite picture of changes in farmers' and factory
workers' earnings, costs and consumption, is also given.
Changes in prices to consumers for the 14 foods covered
by the "Consumers' Guide" were as follows:
AVERAGE RETAIL PRICES IN THE UNITED STATES.
Commodity.
•% Change
Dec. lb Feb. 15 Nog. 21 Dec. 5 Dec. 19 Feb. 15 to
1933.
Dec. 19.
1933.
1933.
1933.
1932.
.
,bib2t4Gir.b2N
ta..00Cat4r1.C.n.,00bico
Volume 138
Seventy-seven per cent of the replies indicated a material increase, 7.3%
a slight increase, and 15.7% no increase.
2. Does the confidence of the people of your community as a whole
remain unshaken in regard to the Administration, the currency and the
prospect for continued business recovery?
Seventy-five per cent of the correspondents indicated that their communities as a whole continued to have 'complete confidence in the Administration and its policies. Personally, a number of writers expressed some
doubt.
3. What is the attitude of business men-are they willing to make expenditures in the hope offuture profits?
Despite general expressions of confidence in the future, 58% of the correspondents replied that they were unwilling to make such expenditures
9% were willing to proceed cautiously, and 33% said they were ready to
go ahead.
4. Are there a large number of small and medium sized concerns which
are likely to be forced out of business because of increased cost if volume
does not increase promptly?
Fifty-one per cent replied that there are few such concerns, 15% that
there are some but not a great many, and 34% that there are many.
5. What is your personal estimate of business activity in your community during the first six months of 1934?
An improvement offrom 5 to 10% was predicted in 45.5% of the replies.
A 15% improvement was expected by 39% of those replying, while 15.5%
forecast no improvement or an actual decline from present levels.
24.1
-6.3
28.0
4.0
22.3
22.9
11.2
7.7
11.2
15.8
32.1
35.1
19.9
-3.6
19.8
-5.5
24.2
24.3
20.7
-3.3
21.0
19.7
8.2
19.8
4.7
4.8
66.7
24.7
7.9
7.9
9.4
24.7
9.6
2.3
35.8
2.2
22.2
7.0
7.0
10.7
17.5
10.7
seasonal
change
average
so that
• Allowance has been made for an estimated
these figures show the difference, above or below, such an average.
Butter, lb
Cheese. lb
Milk, et
Eggs, dos
Hens, lb
Round steak, lb
Leg of lamb, lb
Pork chop, lb
Flour. lb
Bread, lb
Lard, lb
Potatoes, lb
Rice, lb
24.8
21.3
10.3
21.4
21.3
24.2
21.7
17.6
2.9
6.4
7.7
1.5
5.8
g0
28.4
22.8
11.1
36.1
20.0
25.0
21.2
22.2
4.8
8.0
9.8
2.3
6.9
105
Orders at Lumber Mills Continue Encouraging
Advance.
Lumber orders received at the mills during the week
ended Jan. 20 1934 were heavier than those booked during
any week of the previous three months with the exception
of the three-week spurt in November and were greater by
26% than those of the preceding week; production and
shipments were above those of the preceding three weeks,
according to telegraphic reports to the National Lumber
Manufacturers Association from regional associations covering the operations of leading hardwood and softwood mills.
The reports were made by 1,185 American mills whose
production was 145,461,000 feet; shipments, 135,865,000
feet; orders, 169,608,000 feet. For the first time in several
years southern cypress figures were included in the Jan. 20
barometer report, these coming from 14 mills whose production for the week was 1,169,000 feet; shipments, 1,426,000
feet; orders, 1,649,000 feet. Revised records of the previous
week for 1,163 mills showed production 140,692,000 feet;
shipments, 123,641,000 feet; orders, 135,105,000 feet. The
Association, in reviewing activities in the lumber industry,
further stated:
During the week ended Jan. 20 1934 all regions but redwood and southern
hardwoods reported orders above production, total softwood orders being
23% above production. Hardwood orders were 18% below hardwood
output.
All regions but redwood reported heavier orders than during the corresponding week of last year, total softwood orders being 40% above
those of last year's week; hardwood orders, 19% above last year. Production during the 1934 week was 37% above that of similar week of 1933;
shipments were 11% above those of a year ago and total orders were 38%
heavier than those of the 1933 week.
Unfilled orders at the mills on Jan. 20 were the equivalent of 19 days'
average production of reporting mills compared with 19 days' on similar
date of 1933.
Forest products carloadings totalled 18.146 cars during the week ended
Jan. 13 1934, which was an increase of 3,268 cars above the preceding week;
4,052 cars above the same week of 1933 and 49 cars above similar week
of 1932.
Lumber orders reported for the week ended Jan. 20 1934 by 829 softwood
mills totaled 150.572,000 feet, or 23% above the production of the same
mills. Shipments as reported for the same week were 118.049,000 feet.
or 3% below production. Production was 122.172,000 feet.
Reports from 377 hardwood mills give new business as 19,036,000 feet,
or 18% below production. Shipments as reported for the same week were
17,816,000 feet, or 24% below production. Production was 23.289,000 feet.
584
Unfilled Orders and S o s.
Reports from 1,209 mills on Jan. 20 1934. giv.. unfilled orders of 622,('40,000 feet and 1.196 mills report gross stock- of 4.484,553,000 feet. The
E41 Identical mills report unfilled orders as 456.205 00.) feet on Jan. 20
1934. or the equivalent of 19 days' average production, as compared with
449,200,000 feet, or the equivalent of 19 days' average production on
similar date a year ago.
Identical Mi'l Reports.
Last week's production of 404 identical softwood mills was 111,507,000
feet, and a year ago it was 84,513,000 feet; shipme ts were respectively
110,730.000 feet and 98,691,000; and orders rec. i ved 138,186.000 feet and
98,961,000 feet. In the case of hardwoods 214 eentIcal mills reported
production last week and a year ago 15,522,000 icA and 8,529,000: shipments 11,552,000 feet and 11.534,000; and orde s 12,611,000 feet and
10,622.000 f.2et.
SOFTWOOD REPORTS
West Coast Movement.
The West Coast Lumbermen's Association reported from Seattle that for
495 mills in Washington and Oregon and 22 in British C_lumbia reporting,
shipments were 14% below production, and orders 17% above production
and 37% above shipments. New business taken during the week amounted
to 101,025,000 feet (previous week, 74.047,000 at 511 mills); shipments
73,954,000 feet (previous week, 59,261,000): and production 86,294,000
feet (previous week, 83,353,000). Orders on hand at the end of the week
at 495 mills were 320,713,000 feet. The 184 identical mills reported an
increase in production of 39%, and In new business a gain of 49%, as compared with the same week a year ago.
Southern Pine.
The Southern Pine Association reported from New Orleans that for
132 mills reporting, shipments were 5% below producti,n, and orders 14%
above production and 21% above shipments. New business taken during
the week amounted to :c6.779.000 feet (previous week, 23,551,000 at
123 mills); shipments, 22,210,000 feet (previous week, 18,560,000), and
production, 23,432,000 feet (previous week, 22.946,000). Orders on hand
at the end of the week at 87 mills were 56,357,000 feet. The 87 identical
mills reported a decrease in production of 5% and in new business an increase of 7%, as compared with the same week a year ago.
Western Pine.
The Western Pine Association reported from Portland. Ore., that for
126 mills reporting, shipments were 59% above production, and orders
77% above production and 11% above shipments. New business taken
. during the week amounted to 30,779,000 feet, (previous week 24,879.000 at
132 mills); shipments 27,669.000 feet, (previous week 29,044,000); and
production 17,397.000 feet. (previous week 17,526,000). Orders on hand
at the end of the week at 126 mills were 81,894,000 feet. The 108 Identical
mills reported an increase in production of 55%, and in new business a gain
of 53%, as compared with the same week a year ago.
Northern Pine.
The Northern Pine Manufacturers of Minneapolis, Minn., reported
production from 19 American mills as 412.000 feet. shipments 1,665,000
feet and new business 1.418,000 feet. Orders on hand at the end of the week
were 4,521.000 feet.
California Redwood.
The California Redwood Association of San Francisco reported production from 22 mills as 6,183,000 feet, shipments 5,305,000 feet and new
business 3,355,000 feet. Orders on hand at these mills at the end of the
week were 32,215,000 feet. Twelve identical mills reported production
59% greater and new business 9% has than for the same week last year.
Southern Cypress.
The Southern Cypress Manufacturers Association of Jacksonville, Fla.,
reported production from 14 mills as 1.169,000 feet, shipments 1,426.000
feet and new business 1,649,000 feet. Orders on hand at these mills at the
end of the week were 3.580,000 feet.
Northern Hemlock.
The Northern Hemlock and Hardwood Manufacturers Association, of
Oshkosh, Wis., reported softwood production from 21 mills as 585,000 feet,
shipments 958,000 and orders 1,462,000 feet. Orders on hand at the end
of the week at IS mills were 3,353,000 feet. The 13 identical mills reported
a gain of 179% in production and a gain of 204% In new business, compared with the same week a year ago.
HARDWOOD REPORTS.
The Hardwood Manufacturers Institute of Memphis, Tenn.. reported
production from 356 mills as 22,038.000 feet, shipments 16,768,000 and
new business 17,677.000. Orders on hand at the end of the week at 433
mills were 112,391,000 feet. The 201 identical mills reported production
73% greater and new business 15% greater than for the same week last year.
Tho Northern Hemlock and Hardwood Manufacturers Association, of
Oshkosh. Wis., reported hardwood production from 21 mills as 1.251,000
feet, shipments 1,048,000 and orders 1,359.000 feet. Orders on hand at the
end of the week at 13 mills were 7.616.000 feet. The 13 identical mills
reported a gain of 426% in production and a gain of 84% in orders. compared with the same week last year.
Shipments of Pneumatic Casings in November 1933
Exceeded Corresponding Period in 1932 by 28.4%Production 31.9% Higher -Inventories Again Increased.
According to figures estimated to represent 80% of the
industry, as released by the Rubber Manufacturers Association, Inc., production of pneumatic casings and tubes
continued to exceed shipments during the month of November 1933, inventories showing a further increase. During this
period, according to these estimates, there were produced
2,431,509 pneumatic casings-balloons and high pressurea decrease of 11.4% under October 1933 but was 31.9%
above November 1932. Shipments were estimated at 1,757,988 pneumatic casings, a decrease of 13.4% below October
1933 but exceeded November 1932 by 28.4%. During
November 1933 there were also produced a total of 11,379
solid and cushion tires and 9,304 shipped.
Estimates from 80% of the industry further show that
during the month of November 1933 production of balloon
fan. 27 1934
Financial Chronicle
and high pressure tubes amounted to 2,290,445, as against
2,804,511 in the preceding month and 1,604,071 in the
corresponding period in 1932. Shipments totaled 1,682,132
inner tubes as compared with 2,140,520 in the month of
October last and 1,262,634 in November 1932.
These estimates further show that there were on hand on
Nov. 30 1933 a total of 7;397,250 pneumatic casings and
6,900,205 inner tubes, as against 6,769,388 pneumatic
casings and 6,264,977 inner tubes a month before and 5,963,554 pneumatic casings and 5,329,819 inner tubes at Nov. 30
1932.
PRODUCTION AND SHIPMENTS OF PNEUMATIC CASINGS.
[From Figures Estimated to Represent 100% of the Industry.]
November 1933
October 1933
November 1932
Shipments.
Production.
2,197,485
2,536,971
1,711,298
3,039,386
3,428,658
2.303,545
Inrentory.
9,246.553
8,461.735
7,454,443
The Association, in its bulletin dated Jan. 15 1934 gave
the following data:
PRODUCTION AND SHIPMENTS OF PNEUMATIC CASINGS AND INNER
TUBES (BY MONTHS).
[From figures estimated to represent 80% of the Industry.]
Inner Tubes.
Pneumatic Castngs.
1933January
February
March
April
May
June
July
August
September__ _
October
November_ _ _
Inrentory.
Output.
Shipmerits.
Inrentory.
Output.
Shipmeats.
5,789,476
5.901,557
5,831,981
5,418.979
5,408,132
5,291.952
5,475,205
5,655,659
6,075,605
• 6,769,388
• 7,397,250
1,806,277
1,871,498
1,630,319
2,498,795
4,151.433
4,879,939
4,570,901
3,994.887
3.199,391
2,742,926
2.431.509
2.077,268
1,833,970
1,673.502
2.923.154
4,144,138
5,044,363
4,397.753
3,765.668
2.802,692
2.029.577
1,757,988
4,957,298
5,085,321
5,095,340
4,951,399
5,105,389
4.877,686
5,152.187
5,302,736
5.606.752
6.264.977
6,900,205
1,674,557
1,778,818
1,506,141
2,282,298
3.760,121
4.358.325
4,482,077
3.933,134
3.069,600
2,804,511
2,290,445
2,028,100
1,681,853
1,521,736
2,440,555
3.570.700
4,622,473
4.168,919
3,749,898
2.777.935
2.140,620
1,682,132
•
•
•
•
•
•
33,777,875 32,450,073
31,940,024 30,384.821
Total
1932• 6,329,417 2,769,988 2,602,469 6.175,055 2,718,508 2,803,369
January
February
7,337.790 3.098,976 2,042,789 7,007,567 3,056,988 2,182,405
March
7,902,258 2.936,872 2.363,323 7,558,177 2,801,602 2,148.899
April
• 7.876,656 2,813.489 2,958,014 7.552.674 2,579,768 2,708.186
May
7,502,953 3.056,050 3,406.493 7,130.625 2,727.462 3.093.593
June
13.999,260 4,514.663 x8,051,932 :4,139,358 4,222,816 :7,215,371
July
4,962,285 2,893,463 1,923.276 4,779,814 2,349,761 1,727,750
5,327,179 2,471,361 2,123,890 4,901.884 2,198.560 2,002,347
August
4,876,878 2,030,976 2,465.828 4.602,160 2,081,146 2,478,234
September__ _
October
5,500,784 2,054,913 1,439,309 4,970.898 1,749,188 1,326,824
5,063,554 1,842.836 1,369,038 5.329.819 1,604.071 1.262,634
November __ _
6,115,487 1,586,145 1,454,060 5,399,551 1.423,376 1,378,924
December
32,067,732 32,200,820
Total
1931January
7,165.846
February
7,628,520
March
8,011,592
April
8,025,135
May
8,249,856
8,357,768
June
July
7,935,565
7.117,037
August
6,526,762
September_ _
6,640,062
October
November__ _ _ 6,335,227
6,219,776
December
2,939,702
3.188,274
3,730.061
3,955,491
4,543,003
4,537,970
3,941,187
3,124.746
2,537.575
2,379,004
2,000.630
2,114,577
2.995,479
2.721,347
3,297,225
3,945,525
4,332,137
4,457.509
4,369.526
3.967.987
3,145,488
2,281,322
2,309.971
2,225,036
29,513,246 30,328,530
7.551,503
9,936,773
8.379,974
8,330.155
8,438,799
8.403,401
7,671,801
7,019,217
6,476,191
6,658,913
6,495,708
6,337,570
3,249,734
2,720,135
3,031,279
3,708,949
4,224,594
4,317,643
4,684,964
4,240,403
3,320,103
2.250,494
2,075.716
2,213,261
38.666.376 40.017.175
38.092.220 40.048.552
fotal
x Revised.
2,898,405
3.132,770
3,559,644
3,693,222
4,329,731
4,286,467
3,964,174
3,548,335
2,759,431
2,461,578
1,954,915
2,077,704
CONSUMPTION OF COTTON FABRICS AND CRUDE RUBBER IN THE
PRODUCTION OF CASINGS, TUBES, SOLID AND CUSHION TIRES
AND OUTPUT OF PASSENGER CARS AND TRUCKS.
Consumption.
Cotton
Fabrics
(80%)
Calendar years:
1929
1930
1031
1932
First 11 months:
1929
1930
1931
1932
1933
Month of Jan. 1933
Month of Feb. 1933
Month of Mar. 1933
Month of April 1933
Month of May 1933
Month of June 1933
Month of July 1933
Month of Aug. 1933
Month of Sept. 1933
Month of Oct. 1933
Month of Nov. 1933
Crude
Rubber
(80%)
Production. x
Gasoline
(100%)
Passenger
Cars
Trucks
(100%) (100%)
(Pounds.)
208.824,653
158,812,462
151,143,715
128,981,222
(Gallons.)
(Pounds.)
598,994,708 14,748,552,000
476,755,707 16,200,894,000
456,615,428 16.941,750,000
416,577,533 15,698,340,000
4,811,107
2.939,791
2,036,567
1,196,357
810,549
569,271
435,784
245,285
200.147,858
150,454,478
143,212,895
122,988.344
130,003,007
7,899.233
7,263,337
6,364,276
10,460,327
16,778,354
19.552,783
18,709,458
16,820,552
13,591,881
11,115,727
10,447,079
572,267,062 14,421,686,000
451,218,955 15,036,534,000
431,610,850 15,659,532,000
393.480,067 14,480,634,000
477,835,712 14,671,188,000
27,368,276 1,110.564,000
25.123,700
979.608,000
21,508,416 1,186,122.000
35,169,724 1,267,392,000
58,202,264 1,427,958,000
67,866.087 1,583,820,000
64,936.169 1.447.236,000
57.022,618 1,571.892,000
45,160.710 1,440,726,000
40,283,541 1,384,866,000
35,194.207 1,271,004,000
4,714,003
2,817,389
1,938,262
1,098,499
1,604,487
111,318
94,517
106,472
160,678
192,656
217.488
200,345
200,063
165,258
110,796
45,932
779,135
532.487
410,124
223,503
333,331
22,154
15,595
18,752
28,606
34,911
43,157
39,283
42,496
36,632
31,361
20,263
These figures Include Canadian production and cars assembled abroad the
parts of which were manufactured in the United States.
WHOLESALE PRICES OF COMMODITIES.
Average Prices.
Commodity.
Nov.
1033.
All commodities
Crude rubber (cents per pound).- - .086
Smoked sheets (cents per pound)
.095
Latex crepe (cents per pound)....
Tires(S per unit)
8.89
Balloon ($ per unit/
4.07
Cord ($ per unit)
25.90
Truck and bus($ per unit)
2.49
Tubes, inner ($ per unit)
Oct.
1933.
Nov.
1932.
.077
.085
.035
.040
13.85
9.51
4.91
27.67
2.35
4.07
25.90
2.49
Index Numbers.
1926-100,
Nov. Oct. Nov.
1933. 1933. 1932.
71.1
17.5
17.7
19.1
43.2
41.5
42.8
42.3
44.9
71.2
15.6
15.8
17.2
43.2
41.5
42.8
42.3
44.9
63.9
7.2
7.1
8.0
44.6
43.2
51.7
45.2
41.7
Automobile Production in December.
December factory sales of automobiles manufactured in
the United States (including foreign assemblies from parts
made in the United States and reported as complete units
or vehicles), based on data reported to the Bureau of the
Census, consisted of 84,045 vehicles, of which 52,601 were
passenger cars, 30,145 trucks and 1,299 taxicabs, as compared with 63,904 vehicles in November, 107,353 vehicles
in December 1932, and 121,541 vehicles in December 1931.
The table below is based on figures received from 120
manufacturers in the Urited States, 33 making passenger
cars and 87 making trucks (9 of the 33 passenger car manufacturers also making trucks). Figures for taxicabs include
only those built specifically for that purpose; figures for
trucks include ambulances, funeral cars, fire apparatus,
street sweepers and buses. Canadian figures are supplied
by the Dominion Bureau of Statistics.
NUMBER OF VEIIICLES.
Canada.
United States.
33,531
39,521
45,161
50,022
45,688
40,244
34,317
31,772
31,338
21,727
19,683
23.644
lototo—tobo
3,731
5,477
8,318
6,810
8,221
7,112
7,472
4,067
2,342
2,923
2,204
2,139
1,119
60.816
.1p4t..WOboCtWOW1.4
A...a.c04.05wo.cow.
0anorow.0.300
to
82,621
5
152
660
411
54
35
4
68
9
63
1,611
1,299
3,358
3,298
6,632
8,255
9,396
7,323
6,540
6,079
5,808
3,682
2,291
3,262
Total (year). 1.959.201 1.602.332 3524s8
4 371
65.924
Total (year). 1,370,078 1,134,372 235,187
1933January
February
March
April
May
June
July
August
September
October
November
December
130,044
106,825
117,949
180,667
218,303
253,322
233,088
236,487
196,082
138,485
63,904
84,045
108,321
91,340
99,225
152,939
184,644
211,441
195,019
195,076
160,891
108,010
42,818
52,601
1,944
2,342
2,510
3,116
2.117
1.252
1,069
1.118
538
679
435
408
65,093 17.528
CoON COO CO* 04
98.706
94,085
99,325
120,906
157,683
160.103
94,678
75,898
64,735
35,102
47,293
85,858
0.035
4,552
7,529
10,483
14,043
10,621
5,583
3,151
3,426
2,108
761
812
2,024
N., , 0 W.M,O. 0CO
119,344
117,418
118,959
148,326
184.295
183.106
109,143
90,325
84,150
48,702
59,557
107,353
12t=tn'gt
Total (year). 2,389,738 1,967,055 416,648
C,400.0.00W.W.C.
137,805
179.890
230,834
286,252
271,135
210,036
183,993
155,321
109,087
57,764
48,185
96,753
PassenTotal. ger Cars. Trucks,
N...2•0.&MN--INCOM
171,848
219,940
276,405
336,939
317.163
250,640
218,490
187,197
140.566
80,142
68.867
121,541
•
.00...WW=IACAO
oP.Ota0004.0,.N.
1931January
February
March
April
May
June
July
August
September__ _
October
November
December
TadTrucks. cabs.x
to
1Ntl
NIC.0.400.,
.
Total.
Passenger
Cars.
bZ1,2
OW
Year and Month
1932January
February
March
April
May
June
July
August
September __ _ _
October
November
December
619
983
1,714
1,150
952
804
699
901
601
562
535
578
50,718 10,098
2,921
3,025
6,927
6.957
8,024
6.005
5,322
4,919
4,358
2,723
1,503
2,171
437
273
705
1,298
1.372
1.318
1,218
1,160
1,450
959
788
1,091
53.855 12.069
x Includes only factory-built taxicabs. and not private passenger cars converted
into vehicles for hire.
$30,994,785 Paid to Farmers Up to Jan. 21 for Participation in Wheat Adjustment Program-Checks
Sent to 399,762 Participants.
Adjustment payments written to date to farmers cooperating with the Agricultural Adjustment Administration
in the wheat acreage reduction program total $30,994,785,
the AAA announced Jan. 21. Checks have been written for
399,762 farmers in 35 States, the Administration said, adding:
Contracts from 1,613 counties have been approved for payment by the
county acceptance unit, which examines county totals before contracts are
individually audited. Substantial payments are yet to be made in the
northwest States, especially Montana and North Dakota.
Payments which have been made by States to date are:
• Arizona
$13,345
$11,622 • New York
California
15.985
458,008 • Nevada
Colorado
29.575
789,866 North Carolina
* Delaware
186,661
56,751 • North Dakota
Idaho
1.050.988
491,871 Ohio
1,307,901
Illinois
1,377,851 Oklahoma
•Indiana
299,612
1,101,326 Oregon
• Iowa
139,203
224,695 Pennsylvania
Kansas
2,743,875
11,686,495 South Dakota
76.687
Kentucky
142,673 • Tennessee
2.605,384
Maryland
513,260 Texas
312,733
Michigan
457,907 Utah
344,113
Minnesota
240,065 Virginia
699,754
Missouri
844,662 Washington
15,282
Montana
187,275 * West Virginia
49,504
Nebraska
1,478,570 Wisconsin
• New Jersey
44,869
8,808 • Wyoming
New Mexico
302,004
* Unchanged from last week.
First Results of Wheat Reduction Plan Found in
Winter Crop Plantings-Acreage Cut Reported
77% of Gross Reduction Expected.
Net reduction of winter wheat plantings for 1934, in the
11 principal producing States, was 77% of the gross reduction that was expected as a result of the wheat campaign
of the AAA, according to an analysis of the results of the
wheat campaign checked with the December estimate of the
Crop Reporting Board. Winter wheat acreage for the
country as a whole was 7.2% under the revised three-year
585
Financial Chronicle
Volume 138
average base acreage, in spite of offsetting plantings by
non-copera.ting farmers, the analysis shows. In noting the
foregoing, an announcement issued Jan. 19 by the AAA
further said:
During the base years. 1930-32, 82% of the winter wheat acreage was in
11 States. In these 11 States the actual reduction in acreage was estimated
at 3.267,000 acres, as compared with 4.263,000 acres expected as a result
of signing of the contracts. This was 77% of the expected reduction, with
only winter wheat seeding reports considered.
The greatest difference between expected and actual reductions were in
Oregon and South Dakota, where spring wheat as well as winter wheat is
important and where farmers may be planning to make their reductions in
spring plantings rather than in the fall; in the eastern Corn Belt. where the
sign-up was:small and where low dairy and hog incomes may have stimulated
new expansion into wheat; and on the northern edge of the South (North
Carolina. Kentucky and Tennessee), where low incomes from other crops
have been stimulating increases in the comparatively small wheat acreage
for several years, and where the base acreage was much below last year's
planting.
The report of the Crop Reporting Board shows that in 18 States, acreage
has been reduced. Reduction in these States totals 3,896.000 acres in 18
other States which increased their acreage, the total increase amounted to
712,000 acres. Two States remained unchanged.
The contracts for the reduction of wheat acreage required the growers
to bring their 1934 acreage to 15% below the average seeded for harvest in
1930, 1931 and 1932. The reported seedings for the fall of 1933 should
therefore be compared with the average seedings in the falls of 1929, 1930.
and 1931.
It may readily be determined what acreage would have been seeded
If farmers who did not sign contracts had planted the same acreage as
during the base years, and if all contracting farmers planted only their
allotted acreage.
When the acreage, that it is thus estimated would have been planted. Is
compared with the acreage reported by the Crop Reporting Board as having
been:seedod, there is reasonably good agreement. This is particularly true
of the leading winter-wheat States.
The average acreage seeded in the leading winter wheat States during the
base period, the acreage seeded last fall, the preliminary estimate of percentage of sign-up, the reduction of acreage called for by the production
control contracts, and the reduction estimated in the crop report, are shown
In the following summary in which the order of listing corresponds generally
with the importance of the State in winter wheat production:
Reduction Below
Base Period.
Percent.
Sign up
Shown by
(Prelim- Called for
(nary.) by CorUractsx Crop Report
Acreage Seeded to
Winter Wheat.
State.
Kansas
Oklahoma
Texas
Nebraska
Illinois
Ohio
Indiana
Missouri
Colorado
Washington
Pennsylvania
Average
1929-1931.
Fall of
1933.
13,490,000
4,533,000
4,346,000
3,502,000
1,864,000
1,735,000
1,638,000
1,527,000
1,464,000
1,269,000
945,000
11,953,000
4,198,000
4,042,000
3,034,000
1,850,000
1,790.000
1,671,000
1,554,000
938,000
1,114,000
902,000
95
81
91
72
55
36
45
49
88
79
9
1,922,000
550.000
593,000
378,000
154,000
88,000
110,000
112,000
193,000
150,000
13,000
1,537,000
335,000
304,000
468,000
14,000
255,000
z33,000
z27,000
526,000
155,000
43,000
3,267.000
4,263,000
36,313.000 33,046,000
Based on preliminary reports as to the percentage of acreage signed up. zIncrease.
Even If all the difference between expected and actual reduction in those
States were due to increased acreage on the part of non-signers, it would not
many conbe a serious difference. When it is remembered, however. that
how many
tract signers seeded their fall plantings before they knew exactly
acres they would be permitted to plant under their contracts, it is evident
farmers
Where
far.
so
well
that the contracts have been carried out quite
payhave thus overplanted certification for the additional wheat benefit
ments.
wheat
The changes from the base years in reported seedIngs of winter
other
as compared with the changes indicated by the contracts, in States
on
computed
was
reduction
expacted
than those listed above follow: (The
assumption
the basis of preliminary reports of the sign-up campaign on the
that reduction in both winter and spring wheat acreage would be uniform.)
Totals
State.
Expected
Reduction.
Percentage
of Sign-up
Actual
Reduction. (Preliminary)
95
140,000
118,000
Montana
73
25,000
22,000
Utah
92
67,000
97,000
Idaho
86
110,000
58,000
New Mexico
83
x22,000
105,000
Oregon
50
51,000
California
47
35,000
23,000
Iowa
95
x96,000
28,000
South Dakota
68
50,000
45,000
Maryland
40
40,000
36,000
Virginia
7
x101,000
4,000
North Carolina
54
x54,000
21,000
Kentucky
27
x61,000
10,000
Tennessee
6
x60.000
2.000
New York
Increase.
According to the summary accompanying the crop report the estimates of
acreage seeded for the period of 1928 to 1933 have been revised in line with
data on shipments and other utilization of wheat collected for use in the
check-up of farmers' applications for benefits in connection with the wheat
reduction campaign and on intensive study of now information on crop
acreages secured during the campaign. As a result of the chock-up the
estimates of winter wheat acreage seeded for these years have been revised
upward an average of 3.2%.
The reduction percentages are based on the revised estimates of planted
winter wheat acreage. The wheat estimates were revised by the Division
of Crop and Livestock Estimates upon the basis of actual new information
made available as a result of a-complete check-up of railroad shipments and
elevator receipts of wheat. At the time the revisions were made,there was a
groat quantity of detailed information available, including hitherto unavailable records of railroad shipments and elevator receipts
This upward revision does not mean that more wheat is being seeded,
but merely reflects the greater accuracy in the estimates which the wheat
campaign made available, Adjustment Administration officials point out.
The situation is described as similar to that of a man who fails to enter a
bank deposit on his checkbook stub. His finding and correcting the error
does not mean that he has any more money, but merely has revised his
record of it in line with his discovery of the facts.
For instance, in the 11 States mentioned as planting 82% of the winter
wheat acreage in the base years, the 1933 plantings of 33,046,000 acres are
586
Financial Chronicle
9% under the revised three-year average acreage of 36,313,000 acres.
However, of these 11 States, upward revisions were made in six, dowiw ard
revision in one, and four remained unchanged. Before the revisions, the
average seeded acreage in these States for the three-year period was 34,736.000 acres. The 1933 plantings for these States are 4.8% under this previous
estimate.
As a whole, the response has been good in the real winter wheat country,
in the opinion of the officials of the Department of Agriculture, both in the
central west and the Mountain States and on the central Atlantic Coast;
but in other regions there is some evidence of non-contract signers going in to
expand production, in the effort to.profit at the expense of those who are
reducing.
France Raises Import Quotas for Certain American
Meats and Condensed Milk—Import License Tax
on Apples and Pears Cut Two-Thirds.
The French Government on Jan. 20 increased the quota
allotments on American meat and dairy products, restoring
the United States to a 100% quota position. The principal
products affected by the order are frozen and salted meats,
hams, sausages and condensed milk. A supplementary increase of 500 metric quintals on hams was allotted to cover
the recent reciprocal agreement with this Nation on French
wines. The official French journal on Jan. 20 printed a
decree reducing the import license tax on apples and pears
to one-third that previously announced.
A press memorandum issued by the Department of Commerce at Washington Jan. 23 read:
The French import quotas for the first quarter of 1934 for imports from
the United States of certain meats and condensed milk have been fixed as
follows, according to a cablegram from the American Embassy at Paris:
Frozen pork, 10 metric tons; meats, salted or in brine, uncooked, not
prepared, including hams, 154 metric tons; sausages, salamis, etc., 8.8
metric tons; and condensed milk without sugar, 18.8 metric tons.
With the exception of the above quota for salted or pickled meats, which
is increased from 104 to 154 metric tons, these quotas are the same as the.
full amounts in previous quarters, in accordance with the French note of
January 6 1934.
12,486 Short Tons of Raw Sugar Shipped from Puerto
Rico to United States During First 20 Days of January, as Compared with 26,626 Tons a Year Ago—
Refined Shipments Higher.
Raw sugar shipments from Puerto Rico to the United
States totaled 12,486 short tons to Jan. 20 of this year, less
than half the 26,526 tons total shipped from Jan. 1 to Jan.21
last year, according to cables to the New York Coffee &
Sugar Exchange. Refined shipments, however, increased,
the Exchange said, this year's shipments amounting to
12,456 tons against 6,600 tons last year. Labor difficulties
have delayed the current crop and according to advices are
not yet completely settled.
Report of Modification of Export Tax Denied by
National Coffee Department of Brazil.
The National Coffee Department of Brazil declares that
the rep zted news of modification in the 45 milreis per bag
export tax is completely untrue and reaffirms that the actual
coffee policy will not suffer any change, in a cable to the
New York Coffee & Sugar Exchange Jan. 19.
AAA to Query Cotton Growers on Proposal for
Compulsory Government Production Control-Questionnaire Based on Bankhead Bill.
The Agricultural Adjustment Administration will endeavor to learn sentiment regarding compulsory Government
control of cotton production by a questionnaire sent to
Southern growers, it was announced Jan. 22 by Secretary
of Agriculture Wallace. The questionnaire was prepared
and submitted to Mr. Wallace by Culley A. Cobb, chief
of the cotton section of the AAA,and is based on the Bankhead bill which advocates the compulsory cotton production
control method through licensing of gins to process a limited
amount of cotton. Secretary Wallace himself said he
preferred the voluntary form of production control, although,
he added, "the compulsory approach would be much easier
to administer." The Secretary said that authorization for
the Secretary of Agriculture to license producers to prevent
acreage expansion through an amendment to the Agricultural Adjustment Act placing heavy taxes on production
exceeding base quotas has been submitted to the AAA
for study.
AAA Prohibits Further Sales of Farmers' Cotton
Options—Oscar Johnston Rules Those Sold Prior
to Jan. 11 Must Be Exercised Immediately—
Previous Statement Had Declared Purchases by
Southern Brokers and Banks Are Illegal.
The public was warned against the purchase of farmers'
cotton options on Jan. 9, when Oscar Johnston, Manager of
the Cotton Option Pool of the Agricultural Adjustment Administration, pointed out that the sale of cotton options was
Jan. 27 1934
prohibited and that the Secretary of Agriculture is not
required to recognize pledges. He urged the holders of such
options to proceed in the regular manner to obtain full value
through governmental agencies. Two days later, on Jan. 11,
Mr. Johnston stated that no future assignments of cotton
options would be recognized and announced a ruling covering the options which have been purchased from the original
holders prior to Jan. 11.
Mr. Johnston issued the following statement Jan. 9:
"There has come to my attention reports from throughout the South that
various persons are engaged in buying cotton options from the holders.
In some instances, I am advised, these purchases have been made at a loss
to the optionee of as much as 100 points under March quotations.
"I would call public attention to the fact that the sale of these options
is prohibited. The Secretary of Agriculture is not required to recognize
pledges, and where it appears a pledge has been made as a cloak to
conceal an actual assignment, suitable investigation will be made to
determine the circumstances surrounding such pledge or assignment.
Where advantage has been taken of the producer, proper action will be
contemplated to remedy the situation.
"Under the terms of the option the holders have the alternative of calling
and receiving the difference between 6c. and the market price or of
assigning their option to the cotton pool and receive an initial payment
of 4c. per pound. Checks are going out daily to the option holders who
have exercised their privileges in the required manner. There is absolutely
no reason for the holder of these options to sell or assign them to obtain
their money. Persons buying these options at a discount are running a
risk in that if it can be ascertained that the purchase was made in
violation of the option terms, no pretended rights of such purchasers or
assignees will be recognized. The contract requires that where the option
is called the check will be made to the original holder, who in each case is
the producer who accepted the option as part of the consideration in the
cotton adjustment campaign of last summer."
Some 600,000 producers have options on approximately 2,400,000 bales
of Government-held cotton at 6c. per pound.
Mr. Johnston's ruling of Jan. 11 was contained in a telegram to a Houston, Tex., cotton merchant, and read as
follows:
Department prefers options be exercised and sent in by producer to
whom option originally issued. Will recognize exercise of option by bona
fide pledgee where producer will receive full benefit of proceeds of option.
In view of fact that some options have heretofore been purchased, Department has ruled that if purchasers will exercise options prior to Jan. 18
settlement will be made on basis January New York contract and proceeds
remitted by check to properly authorized and designated assignee. This
will only apply to options purchased prior to Jan. 11. Assignments after
that date will not be recognized.
Commenting on the ruling, Mr. Johnston said:
Only bona fide pledges of the options held by producers are required to
be recognized. Persons will not be permitted to purchase these options
from the producers, and, with the exception contained in the ruling, all
checks will be made to the original holder of the option. It will be the
duty of the option holder in cases of a bona fide pledge to make the proper
settlement with the pledgee. Persons who purchase options after Jan. 11
do so at their own risk and neither the Department nor the original option
holder can be required to recognize any rights of such purchasers when the
Option is called or assigned to the cotton pool.
Senator Smith to Seek Ban on Government Forecasts
of Cotton Crop—Proposed Bill Would Permit
Only Ginning Statistics.
Senator Smith, Chairman of the Senate Agriculture Committee, announced on Jan. 17 that he would introduce a bill
to prohibit the forecasting of the probable cotton output by
any agency of the Government. He said that the cotton crop
Is so important to the South that Government departments
should indulge in no "guess work" as to probable yields. A
Washington dispatch of Jan. 17 to the New York "Journal
of Commerce" added the following Information:
"There should be no more crop estimates by the Bureaus of the Government," he declared. "Let the ginner's reports show how much cotton is
available.
"Everybody knows that there is not another crop in America that brings
In as much money to the farmers as cotton. I think we ought to restrict
the reports to facts and not guess work."
Estimates of cotton production are issued monthly by the Bureau of
Agricultural Economics of the Department of Agriculture throughout the
cotton season. Complaints against these reports have been raised on numerous occasions by members of Congress, and several attempts have been
made in the past to have the law authorizing the issuance of the estimates
changed.
Cotton Loans by Government Exceed $108,000,000—
CCC Bases Estimate on 10-Cent Advance Made on
2,000,000 Bales.
Government loans at the rate of 10c. a pound, and aggregating between $108,000,000 and $112,000,000, have been advanced on 2,000,000 bales of producers' cotton, according to
an estimate made Jan. 10 by the Commodity Credit Corporation, a subsidiary of the Agricultural Adjustment Administration in charge of such advances to growers. The information was based upon all information available to the
Corporation, Oscar Johnston, its head and AAA financial
adviser, said. He pointed out that there is no manner of
making a definite check of the total amount of the loans.
Under the cotton loan program the Corporation has rediscounted at an average rate of $50 a bale loans to the amount
Financial Chronicle
Volume 138
of 854,000,000, Mr. Johnston said. This would amount to
about 1,080.000 bales.
587
hours per spindle in place, by States, are shown in the
following statement:
"The Commodity Credit Corporation has reason to believe that the banks
and private lending agencies of the South co-operating in the loan program
are carrying a like amount of the loans," he added.
Spinning Spindles.
Active Spindle Hour*
for December.
State,
Duties on Imported Oats and Oat Products Increased
by United Kingdom.
A United Kingdom Treasury order, effective from Jan. 13,
replaces the existing ad valorem rate of 20%0 with a duty
of 3s. per cwt (of 112 pounds) on oats and 7s. 6d. per cwt.
on oatmeal, oat groats, and other processed oats, according
to a cablegram received in the United States Department
of Commerce from Commercial Attache Lynn W. Meekins,
London. In announcing this, on Jan. 15, the Department
said that it is reported that the purpose of the order is to
protect Scottish farmers from the competition resulting from
increased low-priced imports.
Cotton Ginned from Crop of 1933 Prior to Jan. 16.
The Census report issued on Jan. 16, compiled from
the individual returns of the ginners, shows 12,558,762
running bales of cotton (counting round as half bales and
excluding linters) ginned from the crop of 1933 prior to
Jan. 16, compared with 12,414,899 bales from the crop of
1932 and 15,996,382 bales from the crop of 1931. Below
is the report in full:
State.
Running Boles (Counting Round as Half
Bales and Excluding Linters).
1933.
Alabama
Arizona
Arkansas
California
Florida
Georgia
Louisiana
Mississippi
Missouri
New Mexico
North Carolina
Oklahoma
South Carolina
Tennessee
Texas
Virginia
All other States
950,170
85,787
1,006,079
191,745
23,470
1,090,726
488,565
1,130.244
231,504
85,522
684,475
1,224,801
723.886
425,170
4,190,174
33,636
12,808
1932.
927,909
60,219
1,253,011
119,653
15,429
852,779
597,778
1,148.820
289,801
64,063
667,268
1,051,812
707,905
451,372
4,164,269
30,027
12,784
1931.
1,381,557
89,874
1,635,893
156,844
43,191
1.380,502
850,692
1,606,869
249,528
86,383
763.735
1,198,933
999.839
552,997
4,947,977
41,814
9,754
United States
*12,558,762
*12,414,899
*15,996,382
•Includes 171,254 bales of the crop of 1933 ginned prior to Aug. 1 which was
counted in the supply for the season of 1932-33. compared with 71.063 and 7,307
bales of the crops of 1932 and 1931.
The statistics in this report include 592,054 round bales for 1933:666,036
for 1932 and 589.483 for 1931. Included in the above are 6.792 bales of
American-Egyptian for 1933; 7,402 for 1932. and 10,868 for 1931.
The statistics for 1933 in this report are subject to revision when checked
against the individual returns of the ginners being transmitted by mail.
The corrected statistics of the quantity of cotton ginned this season prior
to Dec. 13, are 12,356,107 bales.
CONSUMPTION, STOCKS, IMPORTS ANT) EXPORTS-U. S.
Cotton consumed during the month of December 1933 amounted to
348.393 bales. Cotton on hand in consuming establishments on Dec. 31.
was 1,641,742 bales, and in public storage and at compresses 10,313.461
bales. The number of active consuming cotton spindles for the month
was 24,840,870. The total imports for the month of December 1933, were
14,013 bales and the exports of domestic cotton, excluding linters, were
820,099 bales.
WORLD STATISTICS.
The world's production of commercial cotton, exclusive of linters, grown
in 1932. as compiled from various sources, was 23,634,000 bales, caunting
American in running bales and foreign in helps of 478 pounds lint, while
the consumption of cotton (exclusive of linters in the United States) for
the year ending July 31 1933. was 24,986.000 bales. The total number
ofspinning cotton spindles, both active and idle, is about 158,000,000.
Activity in the Cotton Spinning Industry for
December 1933.
The Bureau of the Census announced on Jan. 20 that,
according to preliminary figures, 30,938,340 cotton spinning
spindles were in place in the United States on Dec. 311933,
of which 24,840,870 were operated at some time durirg the
month,comparea with 25,423,348 for November,25,875,142
for October, 26,002,148 for September, 25,884,704 for
August, 26,085,300 for July, and 23,799,742 for December
1932. The cotton code limits the hours of emphyment
and of productive machinery. However, in order that the
statistics may be comparable with those for earlier months
and years, the same method of computing the percentage
of activity has been used. Computed on this basis the
cotton spindles in the United States were operated during
December 1933 at 73.5% capacity. This percentage compares with 96.3 for November, 101.9 for October, 99.6 for
September, 106.7 for August, 117.5 for July, and 87.1 for
December 1932. The average number of active spindle
hours per spindle in place for the month was 165. The total
number of cotton spinning spindles in place, the number
active, the number of active spindle hours and the average
Average per
Spindle Os Place.
In Place
Dec. 31.
Active fliering December
Total.
30,938,340
24,840,870
5,095,047.829
165
Cotton growing States 19,220,810
New England States_ 10,686,378
All other States
1,031,152
17,338,794
6,815,136
686,940
3,804,108,831
1,176,147,399
114,791,599
198
110
111
1,701,996
686,868
3,027,612
774,794
3,575,884
167,176
801,892
281,456
5,381,678
883,448
5,535,184
517,446
223,648
610.266
871.522
385,652,791
93,571,016
658,483,976
118,896,170
633,826,618
36,348,780
154,804,967
37,156,125
1,064,464,797
158,347,876
1,338,620,894
117,287,748
40,178,507
129,282,912
129.124.652
202
98
198
120
110
166
138
68
173
91
233
181
148
198
143
United States
Alabama
Connecticut
Georgia
Maine
Massachusetts
Mississippi
New Hampshire
New York
North CarolinaRhode Island
South Carolina
Tennessee
Texas
Virginia
All nthom EltAtora
1,909,918
951,400
3,323,006
992,652
5,761,178
218,872
1,119,012
547,940
6,150,670
1,744,872
5,747,146
648,648
272,014
652,316
5115 696
President Roosevelt Reported Not an Opponent of
Bankhead Bill to License Cotton GinnersSenator Bankhead Denies Opposition After Talk
With President.
President Roosevelt will interpose no objection to the
passage by Congress of the Bankhead Bill providing for
licensing of cotton.gmners with a view to limiting shipments
of cotton during the coming season to approximately 9,000,000 bales, Senator Bankhead said on Jan. 25 after a visit
to the White House. A Washington dispatch of Jan. 25
to the New York "Journal of Commerce" added the following
comment on the status of the bill:
Following his conference with the President, Senator Bankhead announced that he would press for action on the bill and was confident that It
would be approved by Congress. When asked if the President favored the
measure, he replied to newspapermen, "You can draw your own conclusions."
The Bill is now pending before the Senate Agriculture Committee awaiting its action. Lengthy hearings were held on the measure last week, during
which it received the indorsement of a number of State agricultural department commissioners.
The attitude that the Secretary of Agriculture will take on the measure.
however, will depend largely on the results of the questionnaire now being
circulated among the cotton farmers seeking their opinions as to a compulsory system of Government production control.
Secretary Wallace, while feeling that the compulsory approach would be
much easier to administer, has a preference for the voluntary form of production control now being practiced in connection with cotton, wheat.
tobacco and other staple products. He is of the opinion, however, that
unless the campaigns now being waged throughout the country for a voluntary reduction are successful it may be necessary to resort to the licensing
system under the powers lodged in the Agricultural Adjustment Act.
Plan of FCA to Market 1934 Wool and Mohair Clip
According to Consumption Demand.
The Farm Credit Administration will continue with the
1934 wool and mohair clip a plan similar to that followed
for the 1933 clip to promote the orderly marketing of these
commodities, Governor Wm. I. Myers announced. Under
this plan, the FCA on Jan. 15 said, the wool trade, growers'
producing and marketing associations, and the FCA will
co-operate to market the 1934 clip in an orderly manner in
response to consumption demand. There will be neither
forced sales nor withholding of wool and mohair from the
market. The announcement continued:
Borrowers whose paper is discounted with the Federal Intermediate
Credit Banks, and whose loans are obtained through co-operative and
private credit associations or corporations, or who have borrowed from
Regional Agricultural Credit Corporations, consign their wool to approved consignees. These consignees agree to market this wool and
mohair at the same rate as they market other wool or mohair they handle.
Consignees are approved by the Wool and Mohair Advisory Committee
of the FCA. They are reputable and financially responsible dealers,
the National Wool Marketing Corporation, or other recognized wool
co-operatives.
Decision was made to continue the plan after a recommendation that
this be done was made by the Committee, which set set up in April 1933
by former Governor Morgenthau of the FCA.
This Committee reported to Governor Myers that requests for continuance of the plan had been received by them from growers' organizations and individual producers representative of the principal wool growing
sections of the country.
In announcing this plan the FCA points out that it is solely a program
for promoting the orderly marketing of that portion of the wool clip involved. The price of wool during the 1934 season will be determined
by fundamental factors of supply and demand. Following the institution
Of the plan for the handling of the 1933 clip, prices of grease wool in the
country advanced sharply and wool continued to rise throughout the greater
Part of the season. .With wool at present values a rise of no such proportions this year is anticipated. Nevertheless, the plan should assure
the industry a much firmer price foundation than might otherwise exist
without it. It is not an effort to control prices but one to try to prevent
unnecessary fluctuations.
Members of the Wool and Mohair Advisory Committee are: H. B.
Embach, Chairman, who is General Manager of the National Wool Marketing Corp., Boston, Mass.; F. R. Marshall, Secretary of the National
Wool Growers Association, Salt Lake City, Utah; Robert L. Turnbull.
member of the firm of Dewey Gould & Co., Boston wool merchants,
and George N. Brennan, Intermediate Credit Commissioner, FCA.
588
Financial Chronicle
Jan. 27 1934
program was an "experiment" and indicated that it might
have to be drastically revised later. He also reserved the
power to cancel the agreements at any time "in the interests
of the public."
Rayon Production in Great Britain During November
Refiners producing 85% of the national supply of gasoline
Reached New High Record of 8,650,000 Pounds.
A further record for rayon production in the United and other petroleum products had signed the agreements and
Kingdom was established in November, according to ad- that it was expected that 95% would eventually participate
vices from the American consulate-general, made public in the plan, Mr. Ickes said.
The oil trade hailed the signing of the agreements as a
Jan. 15 by the United States Commerce Department, which
constructive move, despite the warning of possible revisions
further noted:
voiced by the oil administrator. With the program providing
Total output during the month reached 8,650,000 pounds compared with
for the elimination of surplus stocks of crude and refined
8.520,000 pounds in October, the previous record month, and with 8,100,000 pounds in September. Production in November 1932, amounted
products from the open market, stabilization of disturbed
to 6,590.000 pounds.
price structures for gasoline in certain sections of the nation
British production of rayon during the 11-month period ended Nov. 30
1933, totaled 77,260,000 pounds against 66,990,000 pounds in the correseems in view.
sponding period of 1932.
"This agreement," Mr. Ickes said, "is in many instances
a forward step. The problem of lease and license agreements,
Advance of 5% in Towel Prices.
which has been a difficult one for the industry, has been
In the New York "Journal of Commerce" of Jan. 20
satisfactorily adjusted by providing for the cancellation of
was stated that cotton towel selling agencies planned to
such agreements. Cancellation may be by Aug. 19 1934 or
advance price lists on contract towels on Jan. 22 from 5 to
earlier. This will tend to make a free and competitive retail
73% over current quotations, a number reporting they market for gasoline and lubricating oils,
would raise them approximately only 5%. The item went
"The marketing agreement guarantees a margin to retail
on to say:
dealers.
I believe that these margins are large enough to
In but a single quarter are colored border towels to be raised along with
permit the vast majority of those now in the business to
bucks, crashes and white terry weaves. Several mills that make colored
border styles almost exclusively are following the market, but since a
operate a reasonable profit. A gross marketing margin of
number who are advancing have done nothing about raising these it follows
6
cents is allowed on gasoline above 60 octane rating, and 33A
that buyers will continue to obtain them at unchanged quotations.
cents is allowed for gasoline below 60 octane rating.
The threat of price advances came during the course of the last few
weeks, ever since prices were readjusted at lower levels to conform to
"Another advantage of this plan of stabilization is that
trading terms. Since that time the rising trend in raw cotton and the
periodical price wars should be prevented, and that, through
brisker selling of various cotton goods lines brought in its wake a better
covering response in the towel division.
the medium of the purchase agreement, distress or surplus
gasoline will be taken off the market," he continued. "These
Contract Sales Improve.
Reports are to the effect that business has materially improved in the
measures will assure the Administration of the support of
contract division, for institutions and the hotel supply trade found it advisand
co-operation of a virtually united industry in its future
able to add additional stores to their decreasing surplus stocks. The covdealings with marketing problems.
ering movement, while described as satisfactory, has not been of such proportions that mills are sold up in any quarter. However, on individual
"There are groups of operators which claim certain saving
styles there is sometimes the necessity to wait for deliveries.
in
distribution costs and therefore claim the right to sell
DLA number will take contracts as far ahead as buyers care to go, providing
gasoline below prices generally prevailing. The marketing
the orders are for no farther off that 90 days. In other instances the covering this week was principally on a 30-day basis. That is as far as inquiry
agreement will not restrict those operators where their
led buyers to go and, therefore, sellers had no occasion to state what they
supplying companies are not signatories to the agreement,"
might be tempted to do were they asked to extend shipments into farther
Mr. Ickes said in dealing with the question of out-price
off months.
p Many buyers are still to be heard from in providing themselves with ad- competition.
ditional towels. Since those buyers learned of the advance who happened
"However, these operators have represented to me that
to be in touch with primary developments it follows that higher prices will
come as a surprise to others. Colored border numbers will be at their disthe agreement should recognize some price differential to
posal at unchanged prices.
protect their business and to allow them to take advantage
such savings as they may effect.
Petroleum and Its Products—Oil Men Meet in Wash- of and pass on to the public
ington to Organize Industry Under Approved It has been impossible for me to determine, in the short
Marketing Agreements—Fight on Hot Oil Produc- time which I have been studying this problem, what differtion Continues—Crude Output Above Federal entials would be equitable. I believe there is much to be
Allowable.
-44 said for the arguments that these operators have presented.
Secretary Ickes, oil administrator, having approved the Accordingly, I have provided a method whereby they may
tentative marketing agreements submitted in place of the demonstrate to me what savings they effect and obtain
proposed Federal price control plan last Saturday, oil men whatever relief is justified."
representing the companies signatory to the pacts met in
It is interesting to note that Section 4 of the original
Washington Wednesday for conferences to organize the in- marketing agreements providing severe penalties for violadustry under the authority of the approved pacts at the call tions was eliminated during the process of revision, Mr.Ickes
of Amos L. Beaty, vice-chairman of the planning and co- introducing a substitute penalty for breach of the agreement
ordination committee.
making violators subject to the punitive provisions of the
The meeting Wednesday morning was promptly ad- code, a maximum of $500 or imprisonment of six months,
journed until the following day in order that the representa- or both.
tives might have an over-night opportunity to study the
News from Texas, where the decision on the attempt of a
revised agreements. Meeting in conference Thursday and group of independent refiners to upset the authority of the
Friday, the oil men struggled with the complexities created Texas Railroad Commission in injunction proceedings before
by the agreements' provisions. With the conferences still a three-judge Federal Court at Houston is still pending—
in the planning stage, little news developed except that the indicated that struggle against production of "hot oil"
men felt that successful organization of the industry was a continues.
practical possibility now that the agreements have been
With representatives of the Railroad Commission finding
approved.
"gross violations of the Commission's proration orders,"
Under the agreements, the representatives of the signa- Attorney-General James V. Allred proclaimed a "finish
tory companies will consider the organization of the National battle" to be under way in the East Texas field to curb the
Petroleum Agency, control and management of which will flow of illegal oil, which he estimated at approximately 60,000
be vested in a board of governors and an executive committee barrels.
which it will name. The marketing pacts also provide a
If the Federal Government is the victor in the litigation •
stabilization committee of three members, chosen by the pending in oil cases in Texas, it will vigorously prosecute
general chairman of each of the six regional committees, numerous criminal cases now pending and will take steps to
will be organized. They will have the authority, among file others against other well-known violators, Charles I.
other things, to attempt to negotiate the restoration of mar- Francis, special Assistant United States Attorney-General
kets suffering from abnormal conditions. Naturally, how- and Assistant Solicitor of the Department of the Interior,
ever, close watch will be kept by the oil administration over acting as counsel for the P. A. B., said in Fort Worth, yesterall activities under both agreements.
day (Friday) in commenting on the "hot oil" situation.
The work of perfecting the organization to put the agreeDaily average crude oil production in the United States
ments into effect will continue, however. When Mr. Ickes last week totaled 2,294,000 barrels, compared with the
announced approval of the agreements, with modifications, Federal allowable for January of 2,183,000 barrels, reports
last Saturday, he served notice on the industry that the to the American Petroleum Institute indicated. While
This Committee reported that as of Jan. 2 1934 eligible consignees
had taken 287,222,784 pounds of wool under the 1933 plan, of which, at
that time, 213,486,432 pounds were sold.
Volume 138
outputs in Oklahoma and California were slightly lower
than in the preceding week, they held above their allocations. Texas production was under its Federal allowable.
The American Petroleum Institute report, however, does
not include oil illegally produced.
Further advances in the prices of lubricating oils posted
during the week supported the belief in some trade quarters
of an increase in Pennsylvania crude oil prices in the near
future.
There were no price changes posted this week.
Prices of Typical Crudes per Barrel at Wells.
(All gravities where A.P. I. degrees are not shown.)
Bradford. Pa
$2.45 Eldorado, Ark., 40
11.00
Corning, Pa
1.20 Rusk, Tex., 40 and over
1.03
Illinois
1.13 Darst Creek
.87
Western Kentueky
1.13 Midland District, Mich
.90
Mid-Cont., Okla., 40 and above... 1.08 Sunburst. Mont
1.35
Hutchinson, Tax., 40 and over__ 1.03 Santa Fe Springs, Calif.,40 and over 1.30
Spindietop, Tex., 40 and over
1.03 Huntington, Calif., 26
1.04
Winkler, Tex
1.82
.75 Petrolia. Canada
Smackover. Ark., 24 and over
.70
REFINED PRODUCTS-NATION'S MARKETS STRENGTHEN AS
MARKETING AGREEMENTS BECOME EFFECTIVE-FEBRUARY PRODUCTION OF GASOLINE LIMITED BY SECRECTARY ICKES-MOTOR FUEL STOCKS INCREASE.
Refined products markets, notably gasoline, strengthened
during the past week under the stimulus of the announcement of the approval of the marketing agreements by Secretary Ickes, which became effective last Saturday. Advances
of gasoline quotations into higher price brackets when consumption picks up is certain while readjustments in areas
affected by competitive conditions arising from the uncertainty prevalent prior to Mr. Ickes's approval of the pacts
are anticipated.
Close control over refinery operations was viewed as a
result of Mr.Ickes's approval of the proposal to hold February
production of gasoline to 27,140,000 barrels. His approval,
It was pointed out, is in line with the oil administration order
specifying gasoline stocks as of Feb. 28 should not exceed
52,130,000 barrels.
In the order establishing the limit of gasoline stocks to
be on hand at the close of next month, the planning and coordination committee recommended to Mr. Ickes the division of production among the various refining areas and
limitation of new output during the month be confined to
an outside limit of 27,140,000. This was approved.
Reports that the oil administration had approved a supplemental agreement to the marketing agreements which would
set up classifications of three grades for commercial gasoline
and retail price differentials between them were denied by
Mr. Ickes.
"No such agreement has been submitted to me by the
petroleum industry and to say that I have approved any
such agreement is not only erroneous but ridiculous in view
of the circumstances," he said.
"I understand some companies within the industry have
formulated such an agreement between themselves and have
filed it with the planning and co-ordination committee,
representing the industry. Under the oil code, the agreement
has no legal force, nor is it binding on any independent or
any dealer, nor could it be without my approval."
The published agreement was reported to divide gasoline
by its octane ratings, and to establish retail price differentials
between the ratings as follows:
Third grade gasoline 1.5 cents gallon less than regular grade. Regular
grade, 2 cents gallon less than premium or high test types.
Regular gasoline would be graded between 60 and 70 octanes, third
grade at 59.9 octanes or less and premium gasoline rated above 70 octanes.
Happenings in the local refined markets this week were
featured by an announceMent by the Standard Oil Co. of
New York on Wednesday of an increase of M cent a gallon
in gasoline prices throughout its territory in New York and
New England. Later in the day, the company rescinded the
increase, without any comment. Demand for lubricating
oils held up well despite the fact that Pennsylvania refiners
moved up lubricant prices M cent a gallon last Saturday, up
1M cents on the week.
Other products were well held and prices firmly sustained
with the strengthening tone of the market attributed to the
improvement expected under the approved marketing agreements. An increase of 5 cents a gallon, including the 1-cent
Federal tax, was made in the price of motor oil by the Quaker
State Oil Co. with the company stating that the rising prices
of Pennsylvania lubricants made the advance necessary.
Despite the decision of the Standard Oil Co. of New York
to rescind its price advance, increases in retail and wholesale
levels of gasoline are expected in the Atlantic Seaboard
and other marketing areas once the seasonal rise in demand
gets under way while readjustments in sections where
589
Financial Chronicle
prices have been cut are expected in the inuneduate future.
In Chicago, a sharp reversal of marketing policies followed in the wake of the change in the situation with refiners
not at all anxious to sell gasoline pending further developments from Washington and jobbers and marketers showing
a sharply revived interest in the market. Little gasoline
is moving.
Prices have strengthened in tone in Chicago with the better
outlook for the market and low material octane is now
quoted around 3% to 3% cents a gallon, about 3. -cent above
4 to 5 cents
its recent low. Regular grade is quoted at 43
a gallon, up about % of a cent from the recent levels.
Storage of motor fuel in the United States rose 649,000
barrels last week to 51,682,000 barrels, reports to the
American Petroleum Institute showed. Refinery operations spurted with plants representing 92.4% of the country's capacity operating at 67.5% of capacity, against
63.3% a week ago.
Price changes follow:
Saturday, Jan. 20.-Pennsylvania refiners advanced lubricating oils
34-cent a gallon.
Tuesday. Jan. 23.-The Quaker State Oil Co. advanced the price of
motor oil 5 cents a quart.
Gasoline, Service Station, Tax Included.
2 15
1.15
New Orleans
Detroit
$.165
New York
z 12
Philadelphia
18
Houston
19
Atlanta
19
San Francisco:
Jacksonville
17
Boston
Third grade _ _ _ _ .17
Los Angeles:
18
Buffalo
Above 65 octane_ .1934
Third grade_ ___ .165
16
Chicago
2134
Premium
.19
Standard
205
Cincinnati
14
.21
St. Louts
Premium
.205
Cleveland
15
z Less taxes.
Minneapolis
.19
Denver
Kerosene, 41-43 Water White, Tank Car, F.O.B. Refinery.
1.02%-.03% New Orleans, ex .3.033i
Chicago
New York:
Tulsa
.04%-.03%
.0434-.06
--Wayonne)....S.053(-.0535 Los Ang.,ex
03
North Texas
Fuel Oil, F.O.B. Refinery or Terminal.
$1.05
Gulf Coast C
California 27 plus D
N. Y.(Bayonne):
1.75-1.00 Chicago 16-22 D- .4236-.50
11.20
Bunker C
.80 Phila. Bunker C_1.15-1.20
Diesel 28-30 D.-- 1.95 New Orleans C
Gas Oil, F.O.B. Refinery or Terminal.
$ 0134
rriasa
; Chicago:
N. Y.(Bayonne):
32-36 GO
1.0134
0_$.03%-.041
28 plus G
U. S. Gasoline, Motor (Above 65 Octane), Tank -Car Lots, F.O.B. Refinery.
Chicago
$ 0434-.05
N. V.(Bayonne):
N. Y.(Bayonne).
Shell Eastern Pet_$.065 New On.,ex- .04 -.0434
Standard Oil N.J.:
.04 -.0434
Arkansas
New York:
Motor, U. 18-$.06
California
.05 -.07
Colonial-Beacon.... .06
62-63 octane... .0534
Los
Angeles.
ex
.0434-.07
Texas
.06
z
Y_
.06
'Stand. Oil N.
Gulf ports-----0634-.073
06
Gulf
Tide Water Oil Co .06
.0434
Republic Oil
.0634 Tulsa
:Richfield 011(Cal.) .0815
.05%
PennsylvaniaSinclair Refining_ .06
Warner-Quin. Co. .0634
Island
Chief,"
$0.07.
v
Long
City.
"Fire
"Golden."
z
:Richfield
Venezuelan Production and Shipments of Crude Oil
Increased During 1933.
Crude oil production in Venezuela in December 1933
amounted to 11,084,419 barrels of 42 gallons each, as compared with 10,716,502 barrels in the preceding month and
9,309,368 barrels in the corresponding period in 1932, according to "O'Shaughnessy's Oil Bulletin." Shipments
totaled 10,557,800 barrels, as against 10,398,100 barrels in
November 1933 and 9,103,700 barrels in December 1932.
Crude oil produced in Venezuela during the year 1933
amounted to 119,003,713 barrels and shipments 116,297,100
barrels, compared with a production of 115,319,859 barrels
and shipments amounting to 110,040,080 barrels during the
year ended Dec. 31 1932. Comparative statistics follow:
PRODUCTION AND SHIPMENTS OF VENEZUELAN OIL.
[In Barrels of 42 Gallons Each.]
Shipments.
Production.
Month.
1933,
1932.
1931.
1933.
1932.
1931.
Jan
9,698,964 9,589,088 10,384,451 9,581.700 9.087,000 10,787,289
Feb _
8,833,778 8,994,242 9,486,327 8,660,600 8,546,100 9,515,725
March.
9,944,518 9,998,250 10,282,727 10.076,000 9,949,300 10,362,348
April _ _ _ 9,058,356 10,480,750 9,262,503 9,340,400 11,004,200 8,585,890
May._ _ 9,133,045 10,648,460 9,514,909 9,624,000 11,260,000 9.048,694
June
9,262,374 10,578,631 9,181,369 8,221,600 10,313,300 8,561,200
July.... 10,052,418 9,550,761 9,913,192 9,635.500 8,394,200 9.401.400
10,309,287 9,429,632 9,795,887 10,146,200 8,123,600 9,274,100
Sept.... 10,181,844 8,802,687 9.412,329 9,959,200 8,087,300 9,420.000
Oct
10,728,228 9,171.320 9,440,165 10,096,000 7,794,100 9,639.300
Nov.... 10.716,502 8,766,670 9,535,068 10,398,100 8,377,280 8,984,320
11,084,419 9,309,368 9.921,889 10,557,800 9,103,700 9,100,800
Tot. yr. 119,003,713 115,319,859 116,130,816 116,297,100 110,040,080 112,680,864
Daily Average Crude Oil Output Off 16,650 Barrels
During Week Ended Jan. 20 1934, but Continues
Above Federal Allowable Figure-Inventories of
Gas and Fuel Oil Again Decline.
The American Petroleum Institute estimates that the
daily average gross crude oil production for the week ended
Jan. 20 1934 was 2,294,600 barrels, an increase of 111,600
barrels over the allowable figure effective Jan. 1 1934 set
by the Secretary of the Interior Ickes. This also compares
with 2,311,250 barrels per day produced during the week
ended Jan. 13 1934, a daily average of 2,227,900 barrels
during the four weeks ended Jan. 20 and an average daily
output of 2,015,300 barrels during the week ended Jan. 21
1933.
Financial Chronicle
590
Inventories of gas and fuel oil again fell off during the
week under review, or from 116,335,000 barrels at Jar. 13
to 115,839,000 barrels at Jan. 20 1934. In the preceding
week, inventories showed a decline of 828,000 barrels.
Further details, as reported by the American Petroleum
Institute, follows:
Imports of crude and refined oil at principal United States ports totaled
867.000 barrels for the week ended Jan. 20, a daily average of 123,857
barrels, compared with a daily average of 126,714 barrels for the four weeks
ended Jan. 20.
Receipts of California oil at Atlantic and Gulf ports totaled 770,000
barrels for the week ended Jan. 20, a daily average of 110,000 barrels,
compared with a daily average of 84,250 barrels over the last four weeks.
Reports received for the week ended Jan. 20 1934 from refining companies controlling 92.4% of the 3,616,900 barrel estimated daily potential
refining capacity of the United States, indicate that 2,256,000 barrels of
crude oil daily were run to the stills operated by those companies and that
they had in storage at refineries at the end of the week, 28,710,000 barrels
of gasoline and 115,839.000 barrels of gas and fuel oil. Gasoline at bulk
terminals, in transit and in pipe lines amounted to 19,722,000 barrels.
Cracked gasoline production by companies owning 95.1% of the potential
charging capacity of all cracking units, averaged 435,000 barrels daily
during the week.
DAILY AVERAGE CRUDE OIL PRODUCTION.
(Figures in Barrels.)
Average
Actual Production.
Federal
4 Weeks
Agency
Allowable Week Encl. Week End. Ended
Jan. 13
Jan. 20
Jan. 20
Effective
1934.
1934.
1934.
Jan. 1
446,600
110,000
Oklahoma
Kansas
Panhandle Texas
North Texas
West Central Texas
West Texas
East Central Texas
East Texas
Conroe
Southwest Texas
Coastal Texas (not including Conroe)
884.000
Total Texas
North Louisiana
Coastal Louisiana
Week
Ended
Jan. 21
1933.
534,750
114,650
548,200
108,250
464,050
111,500
374,550
91.800
43,350
58,200
24,550
121,850
43,200
383,450
53,100
45,200
41,600
58,050
24,450
120,550
43.150
381,550
55,100
42,650
41,800
57,900
24,300
120,400
43,300
395,150
56,250
43,300
44,500
46,450
24,350
159,600
48.250
294,950
23,800
49,200
108,350
104.050
104,850
108.050
881,250
871,150
887,250
799,150
27,000
44,400
27.700
44,000
27,050
43,500
30,250
35,950
69,300
71,400
71.700
70,550
66,200
Arkansas
Eastern (notinel. Mich.)_ _
mleingan
33.000
94,200
29,000
32,150
97,200
24,350
31,950
98,350
27,300
32,050
95,500
26,500
32,150
91,250
15.750
Wyoming
Montana
Colorado
29,000
6.800
2,300
29,250
6,700
2,750
29,950
6,650
2,800
29,550
6,500
2,700
32,250
5.550
2,700
38,100
38,700
39,400
38,750
40,500
41,200
437.600
41,550
458,600
41,950
473,000
41,850
459,900
31,550
472,400
Total LOU1818,1111
Total Rocky Mtn.States
New Mexico
California
2,183,000 2,294,600 2.311.250 2,227,900 2,015,300
Total
Notes.-The figures indicated above do not include any estimate of any oil which
might have been surreptitiously produced.
The following paragraphs are quoted from the official order of the Department
of the Interior, approved and promulgated Dec. 20 1933.
"There shall be no net withdrawals of crude oil from storage during the months
of January. February and March 1934,except in special cases upon the recommendation of the Planning and Co-ordination Committee,and the approval of the Petroleum
Administrator. The period from Jan. 1 1934 to March 31 1934 inclusive, shall
constitute the reckoning period for the determination of net withdrawals.
"Excess production or withdrawals from storage of crude 011 10 any State during
the months of October. November and December 1933, shall be charged against
the allowable of the State for the months of January. February and March 1934."
CRUDE RUNS TO STILLS. MOTOR FUEL STOCKS, AND GAS AND FUEL
OIL STOCKS, WEEK ENDED JAN. 20 1934.
(Figures in Barrels of 42 Gallons Each.)
Daily Refining Capacity
of Plants.
Crude Runs
to Stills.
District.
Reporting.
Potential
Rate.
East Coast__ _ _
Appalachian -._
Ind., Ill., Ky..
Okla.,Kan.,Mo
Inland Texas__
Texas Gulf ____
Louisiana Gulf.
No.La.-Ark..
Rocky Mtn__-_
California
Total.
%
%
Daily OyerAverage. Md.
582,000 582,000 100.0 481,000
150,8(0 139,700 92.6
86,000
436,600 425,000 97.3 272,000
462,100 379,500 82.1 219,000
274,400 165,100 60.2
85,000
537,500 527,500 98.1 479,000
162,000 162,000 100.0 110,000
53,000
82,600
76,500 92.6
63,600 78.8
35,000
80,700
848,200 821,800 96.9 436,000
a Motor
Fuel
Stocks.
Gas and
Fuel Oil
Stocks,
82.6 13,693,000 5,694,000
61.6 1,941,000
860,000
64.0 7,448,000 4,222,000
57.7 5,645,000 3,444,000
51.5 1,218,000 1,634,000
90.8 5,550,000 5,632,000
67.9 1,445,000 1,997,000
69.3
197,000
526,000
55.3
987,000
712,000
53.1 13,558,000 91,118,000
Totals week:
Jan. 20 1934_ 3,616.9003,342,700 92.4 2,256,000 67.5 651,682,000 115,839,000
Jan. 13 1934_ 3,616,900 3,342,700 92.4 2,116,000 63.3 c51,033,000 116,335,000
a Below are set out estimates of total motor fuel stocks in U. S. on Bureau of
Mines basis for week of Jan. 20, compared with certain Jan. 1933 Bureau figures:
A. P. I. estimate on B. of M. basis, week Jan. 20 1934
A.P. I. estimate on B. of M. basis, week Jan. 13 1934
U. S. B. of M. motor fuel stocks, Jan. 1 1933
53,805,000 barrels
55,757,000 barrels
U.S. B. of M. motor fuel stocks, Jan. 31 1933
b Includes 28,710,000 barrels at refineries, 19.722.000 barrels at bulk terminals,
in transit, and pipe lines, and 3,250,000 barrels of other fuel stocks.
c Includes 27,949,000 barrels at refineries, 19,884,000 barrels at bulk terminals,
in transit, and pipe lines, and 3,200,000 barrels of other fuel motor stocks.
x Because of the many changes made by companies in their method of reporting
stocks to the American Petroleum Institute, it has been decided to discontinue our
attempt at estimating figures on a Bureau of Mines basis until further notice.
Secretary Ickes Sets 27,140,000 Barrels as Limit for
February Gasoline Production-Denies Report
that He Approved Supplemental Price Agreement.
Secretary Ickes on Jan. 24 approved a proposal by the oil
industry that February production of gasoline be limited to
27,140,000 barrels. On the previous day Mr. Ickes Issued an
official denial of a statement in a current oil publication that
he had approved a supplemental agreement to the petroleum
marketing agreement which would set up classifications of
Jan. 27 .1934
three grades for commercial gasoline and retail price differentials between them. He declared that no such agreement had ever been submitted to him. Mr. Ickes, in his order
of Jan. 24, made public the following table for different
regions, the first column showing the total allowable gasoline
stocks Feb. 28 and the second the allowable production
volume for the month:
East Coast
Appalachian
Indiana. Illinois, Kentucky
Oklahoma, Kansas, Missouri
Texas-(A)Inland Texas
(B) Texas Gulf Coast
Louisiana-Arkansas(A) Louisiana Gulf Coast, including Alabama
(B) North Louisiana-Arkansas
Rocky Mountain
California
Total United States
Allowed.
15,020,000
2,360,000
7,600,000
5,650,000
1,910,000
5,250,000
Output.
4,890,000
1,140,000
4,580,000
3,420,000
2,010,000
4,990,000
1,490,000
420,000
1,230,000
11,200,000
980,000
660,000
590,000
3,990,000
52,130,000 27,140,000
Secretary Ickes Approves Oil Purchase and Marketing
Agreements, with Some Modifications-Administrator Seeks to Safeguard Consumers and Independent Operators-Pacts Expected to Eliminate
Distress Gasoline and Prevent Price WarsMargin to Retailers Guaranteed.
Secretary of the Interior Ickes, acting in his capacity as
Oil Administrator, on Jan. 20 approved in modified form
the oil purchase and marketing agreements which had been
submitted to him by the industry as a plan for stabilization.
The agreements became effective immediately. Mi. Ickes
said that refiners representing 85% of the industry had
already signed the pacts and that a total represer ting about
95% eventually would participate in the plan. The modifications, he added, were designed to protect the consumer
and the independent operator. An additional safeguard is
provided by the clause which gives the Administrator power
to cancel the agreemerts at any time. The agreements were
recommended by the industry as an alternative to a proposed
price-fixing schedule which was submitted in October by
the Planning and Co-ordination Committee.
Mr. Ickes also announced on Jan. 20 his approval of
standard forms of contract for use in future dealings in motor
fuels between the signatories to the marketirg agreement
and those with whom they deal, directly and indirectly, in
the industry. The Administrator is quoted as saying:
This agreement is in many instances a forward step. The problem of
lease and license agreements, which has been a difficult one for the industry,
has been satisfactorily adjusted by providing for the cancellation of all such
agreements. Cancellation may be by Aug. 19 1934 or earlier. This will
tend to make a free and competitive retail market for gasoline and lubricating OHL
No new exclusive dealing contracts can be made for lubricating oils.
Those to be made in the future for gasoline will be upon a standard contract
form giving retail dealers the right of cancellation on 30 days' notice. Such
provision will relax the rigid control that supplying companies have had
over retailers in the past through agreements. This is a distinct advantage
to retailers.
The marketing agreement guarantees a margin to retail dealers. I
believe that these margins are large enough to permit the vast majority
of those now in the business to operate at reasonable profit. A gross
marketing margin of 6 cents is allowed on gasoline above 60 octane rating,
and 3.84 cents is allowed for gasoline below 60 octane rating.
Another advantage of this plan of stabilization is that periodical price
wars should be prevented and, through the medium of the purchase agreement, distress or surplus gasoline will be taken off the market. These
measures will assure the Administration of the support of and co-operation
of a virtually united industry in its future dealings with marketing problems.
There are groups of operators which claim certain savings in distribution
costs and therefore claim the right to sell gasoline below prices generally
prevailing. The marketing agreement will not restrict these operators
where their supplying companies are not signatories to the agreement.
However, these operators have represented to me that the agreement
should recognize some price differential to protect their business and allow
them to take advantage of and pass on to the public such savings as they
may effect. It has been impossible for me to determine, in the short time
which I have been studying this problein, what differentials would be
equitable. I believe there is much to be said for the arguments these
operators have presented. Accordingly.I have provided a method whereby
they may demonstrate to me what savings they effect and obtain whatever
relief is justified.
I am willing to give this stabilization plan a trial because a preponderant
group in the industry favors it. I shall study its operation closely and will
modify or cancel it at the first evidence of any abuse.
The text of the orders issued on Jan. 20 by Mr. Ickes to
effectuate his approval of the oil marketing agreement
follows:
Order Under the Code of Fair Competition for the Petroleum Industry and th
National Industrial Recovery Act.
I.
Whereas certain members of the petroleum industry, after a prolonged
and careful consideration of its needs, have entered into an agreement
hereinafter referred to as the "Marketing Agreement," designed to stabilize
the retail market of petroleum products, and with a view to assuring fair
margins to distributors and retailers of such petroleum products, and have
submitted this agreement to me under the Code of Fair Competition for the
Petroleum Industry and under the NIRA; and
Whereas this agreement has been approved and recommended to me by
the Planning and Co-ordination Committee under the Code of Fair Competition for the Petroleum Industry; and
Whereas I am advised that refiners of petroleum and its products whose
runs to stills and charging and reforming operations represented 85% of
Volume 138
Financial Chronicle
the total runs to stills and charging and reforming operations in the United
States during the month of November 1933 have become parties thereto; and
Whereas suitable public notice of the aforesaid agreement has been given
pursuant to Section 5, Article I, of the Code of Fair Competition for the
Petroleum Industry, approved by the President Aug. 19 1933; and
Whereas I have carefully and impartially considered this agreement and
have found and determined that it is not designed to promote monopoly
or to eliminate or oppress smaller enterprises, but will serve to effectuate
the purposes of the NIRA and the Code of Fair Competition for the Petroleum Industry by eliminating wasteful and unfair competitive abuses
and thereby conserving an essential natural resource;
Now,therefore, pursuant to the authority vested in me by the provisions
of the NIRA, the Code of Fair Competition for the Petroleum Industry
and the President's order of Aug. 28 1933, I hereby order that this agreement be and it is hereby approved.
Approved and promulgated this 19th day of January 1934.
HAROLD L. ICKES,
Administrator of the Code of Fair Competition for the Petroleum Industry.
Market Features Modified.
IL
Whereas I have this day approved a Marketing Agreement submitted to
me under Title I of the NIRA under the Code of Fair Competition for the
Petroleum Industry approved pursuant to such Act; and
Whereas Subsection (b) of Section 10 of Title I of said Act provides that
"the President may from time to time cancel or modify any * * * approval * • * issued under this title":
Now,therefore, pursuant to the authority vested in me by the President's
order of Aug. 28 1933, Title I of the NIRA (Public No. 67. 73 Congress)
and,in particular, Subsection (a) of Section 4, Subsection (b) of Section 10
and Section 5 thereof, and the Code of Fair Competition for the Petroleum
Industry, and, in particular, Subsection (a) of Section 4, and Sections 4
and 5 of Article I thereof, my said approval of the said Marketing Agreement is hereby modified so as to provide the following:
1. In no event shall the minimum gross marketing margins, as established
in the first and second paragraphs of Section 1 of said Marketing Agreement, be raised except by complying with the provisions of the fourth
paragraph of Section 1 of said agreement.
2. The term "undivided" as applied to resale accounts in the first and
second paragraphs. of Section 1 of the Marketing Agreement shall apply
to sales of gasoline and other motor fuels only, and shall not include sales
of kerosene, furnace oils, distillates, tractor and Diesel fuel oils, lubricating
oils and greases, or any other products sold at wholesale or retail by any
distributor, jobber, wholesaler or retailer.
3. The differential of one-half cent per gallon between the margins
allowed "divided" and "undivided" resale accounts, respectively, provided
for in the second paragraph of Section 2 of the said Marketing Agreement
may be changed and/or amended with respect to any wholesale and/or
retail dealers in any locality upon a vote of 75% of the refiners operating
in the region, if approved by the Planning and Co-ordination Committee
and by US.
4. Before any general or established supply arrangements between any
party or parties whatsoever shall be exempted from the margins fixed for
distributors, jobbers and/or wholesalers, as provided in the fifth paragraph
of Section 1 of the said Marketing Agreement, such exemptions shall be
approved by the Petroleum Administrator,
5. Under the second paragraph of Section 2 of the Marketing Agreement,
lease and agency, lease and license and any other exclusive dealing sales
contracts made since Aug. 19 1933. which relate to the sale, for purposes
of resale, of gasoline and/or other motor fuel, must be canceled forthwith.
Any such contracts renewed since Aug. 19 1933 in accordance with Article V,
Rule 19, paragraph b of the code, must be canceled at the earliest cancellation date permissible under their terms. All other such contracts which
expire prior to Aug. 19 1934 shall not be renewed and all contracts having a
cancellation clause must be canceled on or before that date. All future
contracts for the sale of gasollne and/or other motor fuel shall be made
on the standard forms of contract approved by the Planning and Co-ordination Committee for the Petroleum Industry and by me.
6. That Section 4 of the said Marketing Agreement shall be and is hereby
-disapproved.
7. Nothing in the Marketing Agreement shall be construed to prevent
the payment to carload and cargo brokers and marketers of commissions
on business ordinarily done by them.
8. That the stabilization committees provided for in paragraph 3 of
Section 1 of the said Marketing Agreement shall consist wherever possible
of two representatives from two integrated companies and one representative from an independent refiner.
Approved and promulgated this 19th day of January 1934.
HAROLD L. ICKES,
Administrator of the Code of Fair Competition for the Petroleum Industry.
Order Under the Code of Fair Competition for the Petroleum Industry and the
NIRA.
Whereas certain members of the petroleum industry, after a prolonged
and careful consideration of the needs of the aforesaid industry, have
entered into an agreement to aid in the stabilization of the industry by purchasing, holding and liquidating distress gasoline, and have submitted this
agreement to me under the Code of Fair Competition for the Petroleum
Industry and under the NIRA; and
Whereas this agreement has been approved and recommended to me by
the Planning and Co-ordination Committee under the Code of Fair Competition for the Petroleum Industry; and
Whereas suitable public notice of the aforesaid agreement has been given
pursuant to Section 5, Article I, of the Code of Fair Competition for the
Petroleum Industry, approved by the President Aug. 19 1933; and
Whereas I have carefully and impartially considered this agreement and
have found and determined that it is not designed to promote monopoly
or to eliminate or oppress smaller enterprises, but will serve to effectuate
the purposes of the NIRA. and the Code of Fair Competition of the Petroleum Industry by eliminating wasteful and unfair competittive abuses
and thereby conserving an essential natural resource;
Now, therefore, pursuant to the authority vested in me by the provisions
of the NIRA, the Code of Fair Competition for the Petroleum Industry,
and the President's order of Aug. 28 1933, I hereby order that this agreement be and it is hereby approved.
Approved and promulgated this 19th day of January 1934.
HAROLD L. ICKES,
Administrator of the Code of Fair Competition for the Petroleum
Industry and Secretary of the Interior.
Conferences Are Provided.
Whereas I have this day approved a purchase agreement submitted to
me under Title I of the NIRA and under the Code of Fair CompetitiS
for the Petroleum Industry, approved pursuant to such Act; and
591
Whereas Subsection (B) of Section 10 of Title of said Act provides that
the President may, from time to time, cancel or modify any • * •
approval issued under this title;
Now,therefore, pursuant to the authority vested in me by the President's
order of Aug. 28 1933, Title I of the NIRA (Public No. 67, 73d Congress)
and, in particular, Subsection (a) of Section 4, Subsection (b) of Section 10
and Section 5 thereof, and the Code of Fair Competition of the Petroleum
Industry and, in particular, Subsection (a) of Section 4, and Sections 4
and 5 of Article I, thereof, my approval of the said purchase agreement
is hereby modified so as to provide the following:
1. That the Administrator may at any time time confer with the Planning
and Co-ordination Committee and may redetermine in the light of existing
conditions the proper objective to be attained with respect to the total
gasoline stocks in the United States on July 1 1934.
2. That the National Petroleum Agency shall, under rules and regulations established by its board of governors and satisfactory to the Administrator, provide for the suitable liquidation of gasoline stocks purchased and
held by the said agency, to the end that all parties within the industry may
have an equal opportunity to obtain gasoline at fair market prices.
3. That the Administrator or his duly authorized representatives may
attend the meetings of the board of governors and/or the executive committee and shall have free access to the books and records of the agency. The
Administrator shall be given due notice of any and all meetings of the
board of governors and/or the executive committee.
Approved and promulgated this 19th day of January 1934.
HAROLD L.ICKES.
Administrator of the Code of Fair Competition for the Petroleum Industry.
Order Under the Code of Fair Competition for the Petroleum Industry and
the NIRA.
Whereas Sec. 2 of an agreement submitted to me Dec. 9 1933. and approved Jan. 19 1934, provides that "standard forms of contracts applying
to all transactions for the sale of gasoline and (or) other motor fuels shall
be prepared by the Planning and Co-ordination Committee, with the
approval of the Petroleum Administrator, and the parties to this agreement shall use only such forms of contract in such transactions; and
Whereas the Planning and Co-ordination Committee has submitted to
me the attached standard forms of contract to govern such transactions:,
Now, therefore, these standard forms of contract are hereby approved
in the form submitted, subject, however, to the alterations and substitutions indicated therein.
Approved and promulgated this 19th day of January 1934.
HAROLD L. ICKES,
Administrator of the Code of Fair Competition for the
Petroleum Industry.
Order Under the NIRA.
Whereas by an order dated Jan. 19 1934, I approved an agreement
known as the Marketing Agreement and dated Dec. 7 1933:
Now, therefore, pursuant to the authority vested in me by the President's order of Aug. 28 1933, and sub-section (a) of Sec. 10 of Title I of
the NIRA, and in order effectively to carry out the purposes of the said
agreement and of the said NIRA.I hereby prescribe the following regulation:
Any Person who violates any provision of the said Marketing Agreement or of a contract entered into pursuant thereto shall be guilty of a
violation of Title I of the NIRA and shall be punishable by a fine of not
to exceed 8500 or imprisonment for not to exceed six months, or both.
Promulgated this 19th day of January 1934.
HAROLD L. ICKES.
Administrator for the Petroleum Industry and Secretary
of the Interior.
World Tin Consumption for 1933 Officially Estimated
at 127,000 Tons—Increase of 25% over 1932—
United States Alone Consumed 60,000 Tons,
Leading Rest of World with 50% Gain.
A marked advance in world tin consumption for 1933,
which became evident in the last six months, is officially
reported in the statistical analysis for the year prepared by
The Hague statistical office of the International Tin Research and Development Council, made public Jan. 26 and
cabled to this country. Regarding the estimates it is
announced:
Although final figures have not yet been received from all countries,
the analysis states that consumption of tin during 1933 will approximate
127,000 tons, an increase of 27,000 tons, or some 25% compared with 1932.
The 1933 total, however, is about 16,000 tons under the average for the
ten-year period ended with 1932 and 52,000 tons under the peak year 1929.
Pointing out that this increase was largely due to American demand,the
analysis estimates that on the basis of the eleven months figures of 55,530
tons, the total amount of tin used in manufacture in the United States for
1933 will have amounted to approximately 60,000 tons, an increase of 50%
compared with 1932.
Complete figures for the year show an expansion of consumption in the
United Kingdom and the Netherlands, the former increasing 8% to 19.964
tons and the latter gaining 11% to a total of 1,331 tons.
World production of tin plate is estimated at 3,200,000 tons, an increase
of 900,000 tons, or 40% over 1932. The quantity of tin consumed by this
industry increased from 37,000 tons in 1932 to 51,500 tons in 1933.
It is estimated that the increase in the world's automobile output during
1933 required an additional 2,500 tons of tin.
•
Copper Strengthens on Hope of Early Code Agreement
—Buying Pace Slackens.
"Metal and Mineral Markets" under date of Jan. 25 reports that the spirited buying that featured trading in nonferrous metals in the preceding week was not maintained in
the seven-day period that ended yesterday. An attempt to
raise prices of copper and zinc early in the last week met with
only moderate success. The lead market held on an ev3n
basis throughout the week. The strengthening of prices for
copper was inspired chiefly by what many in the industry
regarded as an excellent chance for an agreement on the proposed code. Refined lead statistics announced during the
week were unfavorable, showing a large increase in stocks.
Tin was quiet and prices were unsettled. There were no new
592
Financial Chronicle
developments in the silver situation. Quicksilver was moderately higher on smaller offerings pending adoption of the
code for the industry. The same publication adds:
Copper Settles at 83i Cents.
Attention in copper centered in the preliminary hearing on the proposed
code for the industry held in Washington under Deputy Administrator 11.0.
King on Jan. 22 and 23. Those who attended the hearing went to Washington with the intention of cleaning up the points at issue, and the market
reflected this optimism in that prices strengthened early in the period in
virtually all directions. Copper scored a net gain for the week of onequarter cent per pound, settling with sellers at M,c. Demand was quiet.
During the week several lots sold at 834c. and 834c. per pound, Connecticut
basis, but, as quick action on the code did not materialize, offerings increased and prices soon became unsettled. The sales total for the week in
domestic copper was well under that reported for thd week previous.
A new draft of the code, prepared by the committee of three, was presented in Washington at the preliminary discussions. This code followed
the principles contained in the committee's original code, but a number of
the provisions to which strong objections were made were so modified as to
make the instrument more acceptable to the industry. The code retains the
minimum price clause.
The United States Copper Association was formed in New York on Jan.
20 for the purpose of sponsoring the code. E. T. Stannard, President of
Kennecott, was elected temporary president of the association. and A. E.
Petermann, of Calumet & Ueda, was made temporary secretary.
Yesterday the trade was about equally divided on whether a code will be
adopted in the near future or some time hence. The impression prevails in
National Recovery Administration circles that the copper industry has been
rather dilatory in the matter of adopting a code of fair practice. Nearly
all of the discussions in recent months, it Is frequently pointed out, have
centered about the same questions-a minimum price, production quotas,
sales quotas, and the disposition of surplus stocks. General Hugh S. Johnson, according to one report, said that the copper code is the "toughest"
which the NRA has yet sought to negotiate.
The committee of three-Hobbins. Petermann, and Zimmer-now has
the task of again rewriting the code. Numerous objections were made to
the proposed code, but the optimists believe that none of those filed were
serious enough to cause any great delay. The proposed labor provisions did
not meet with the approval of Washington, it was stated unofficially.
Buying of copper in the foreign market was in good volume, some of the
business no doubt reflecting the better tone in the domestic trade. The bulk
of the business put through abroad yesterday was on the basis of 8.25c.,
c1!. usual ports.
Advices from Japan report that Japanese copper producers decided to
abandon output curtailment.
Fair Demand for Lead.
Although total sales of lead last week were substantially less than in the
preceding seven-day period, a fair business was done, the price basis of the
metal continuing unchanged at 4c., New York, the contract settling basis
of the American Smelting & Refining Co., and 3.90c., St. Louis. The bulk
of the buying occurred early in the week, consumers' interest gradually
decreasing, with the market taking on a relatively quiet tone the last two
days. Sales were well istributed among the various purchasing interests,
Including cable manufacturers, who, until recently, had been out of the
market for some time. During the calendar week ended Jan. 20, total
sales of all grades of lead, according to statistics circulating in the industry,
exceeded 18.000 tons, a new high record. Sales oflead for January shipment
total about 26,000 tons; those for February shipment have reached about
16,000 tons; and those for March shipment to consumers now stand at
about 9,000 tons.
Zinc Offered at 4.25 Cents.
After the heavy trading of the previous week-about 10,000 tons of zinc
were sold in the week ended Jan. 20-the market for zinc turned dull.
Early in the period the price became firmly established at 4.30c. for Prime
Western, St. Louis, but as additional buying did not come through, several
sellers began offering the metal at 4.25c. The fact that unfilled orders
increased to about 29,000 tons created the impression that consumers are
again filled up with zinc, and this may result in another dull trading period.
Zinc concentrate output continues too high, according to trade authorities.
Light Sales of Tin.
Demand for tin in the domestic market was light the past week, particularly during the last few days. Early in the seven-day period a few 5-ton
lots changed hands, but since then even this small consumer interest in the
metal has largely disappeared. Prices fluctuated within a narrow range,
reflecting the recent steadiness in sterling exchange. The principal interest
in the trade yesterday was apparently speculation as to the forthcoming
figures for January consumption, with a wide difference of opinion prevailing as to the total that the figures will reveal. Some brokers look for a total
of about 3,600 tons, whereas other observers feel that deliveries for January
will not exceed 2,800 tons.
Chinese 99% tin was quoted as follows: Jan. 18th, 49.850e.; 19th,
50.500c.; 20th, 50.375c.; 22d, 50.075c.: 23d, 50.030c.; 24th, 49.875c.
Steel Output Declines-Operations Around 32% of
Capacity-Price of Steel Scrap Again Rises.
The operating rate of steel companies having 98.1% of the
steel capacity of the industry was estimated at 32.5% of the
capacity for the week beginning Jan. 22 1934, compared
with 34.2% one week ago and 31.6% one month ago, it wal
indicated by telegraphic reports to the American Iron and
Steel Institute on Jan. 22. This represents a decline of 1.7
points or 5% from last week.
Lacking expected support from the automobile industry,
the railroads and the building trades, steel business has
tapered off in most market centres, stated the "Iron Age"
of Jan. 25 in its rc view of iron and steel conditions. The
"Age" further reported as follows:
While a moderate gain in automotive tonnage has driven up operations
in the Cleveland district from 50% to 54% of capacity, there have been no
other increases except a half point rise to 291i% at Chicago. Losses have
been rather sharp, including declines of three points to 21% at Pittsburgh,
six points to 30% in the Valleys, and five points to 50% in the Wheeling
istrict. The National average, at 32%,is one point lower than a week ago.
It is now clear that steel production, of late, has been sustained in part
by replenishment of inventories. Any gains that are made from now on
will more accurately reflect increases in steel consumption.
Jan. 27 1934
Prospects of an early expansion of demand are restricted mainly to the
automobile industry. Although motor car builders have not completely
overcome their production difficulties, they are expected to release large
tonnage orders within the next fortnight. Among the smaller steel-consuming industries, farm equipment and road machinery builders are taking
more steel, and miscellaneous users generally appear to be reducing their
steel stocks faster than they had expected.
But expectations remain unfilled so far as business from the railroads
and the construction industry is concerned. Although orders for 20,000
freight cars are in prospect, including 12,775 on which the Van Sweringen
roads took bids Monday,It is doubtful whether any of the resultant tonnage
can reach the mills before March. Both car and rail programs have suffered
delay after delay, largely because of complicated financial negotiations at
Washington, with the result that considerable prospective business has
apparently been postponed indefinitely. Whereas Government aid was
originally expected to bring out orders for close to 850,000 tons of rails,
it is now doubtful whether total purchases will amount to more than
450,000 tons. In the meantime releases against orders so far placed are slow
in reaching producers, and the rail mills a Chicago and Pittsburgh remain
Idle.
The ponderously slow operations of the Government rre also holding
back construction work. While a large part of the public works fund has
been allocated, a relatively small proportion of the E teel required for Government-financed projects bas actually been placed with the mills.
Structural steel lettings, at 11,550 tons, compare with 9,850 tons last
week. New projects of 5,450 tons compare with 14,250 tons last week and
5.800 tons two weeks ago. Inquiries for fabricated plates total 5,000 tons.
The failure of mill operations to rise has forced producers to give renewed
consideration to costs, since lack of volume in certain products will make
losses inevitable. Price advances on sheets, ranging from $3 a ton on
common finishes to $5 a ton on more highly finished grades, are reported
to be a possibility.
Stainless steel, one of the newer products of the industry, has been
lowered In price, evidently in the hope of bringing out an increase in consumption that will be more than compensatcry. On 18-and-8 hot-rolled
strip the reduction is 33ic. a lb.; on cold-rolled strip of the same analysis
the cut is 3c. a lb.
The confused and disappointing situation in the finished steel market
is not reflected by scrap prices. Increases at Chicago and Pittsburgh have
driven up the "Iron Age" scrap composite from $11.83 to $12 a ton, its
ninth consecutive weekly advance. The "Iron Age" composites for pig iron
and finished steel are unchanged at $16.90 a ton and 2.028c. a lb. respectively.
Additions to prospective railroad purchases include 30,000 tons of rails
and 10 all-steel passenger coaches for which the Boston & Maine has asked
Federal financial aid and 25,000 tons of rails, 10,000 tons of track fastenings,
50 passenger cars and a stream-lined passenger train which will be bought by.
the New York New Haven & Hartford RR. The Erie has put out inquiries for 125 passenger coaches and eight all-steel mail cars.
Contracts for 5,280 tons of armor plate for four light cruisers have been
placed by the Navy Department.
THE "IRON AGE" COMPOSITE PRICES.
Finished Steel.
Jan. 23 1934,2.028c. a Lb.
Based on steel bars, beams, tank plates
One week ago
2.028c, wire, rails, black pipe and sheets
One month ago
2.0280. These products make 85% of the
One year ago
1 923e. United States output.
High.
Low.
!934
2028c. Jan. 2
2.028e. Jan. 2
1933
2 0360. Oct. 3
1.867c. Apr. 18
1932
1 9770. Oct. 4
1.926o. Feb. 2
1931
20370. Jan. 13
1.945o. Dec. 29
1930
2.273c. Jan. 7
2.018e. Dec. 9
2 317c. Apr. 2
1929
2.273e. Oct. 29
1928
2 286e. Dec. 11
2.217c. July 17
2 4020. Jan. 4
1927
2.2120. Nov. 1
Pig Iron.
Based on average of basic Iron at Valley
Jan. 23 1934, 116.90 a Gross Ton.
$16.90 furnace foundry irons at Chicago.
One week ago
16.90 Philadelphia, Buffalo, Valley, and BMOne month ago
13.56
mingbam.
One year ago
High.
Low.
$16.90 Jan. 2
$16.90 Jan. 2
1934
16.90 Dec. 5
13.56 Jan. 3
1933
14.81 Jan. 5
13.56 Dec. 6
1932
15.90 Jan, 6
1931
14.79 Dec. 15
18.21 Jan. 7
15.90 Dec. 16
1930
18.71 May 14
1929
18.21 Dec. 17
18.59 Nov.27
1928
17.04 July 24
19.71 Jan. 4
17.54 Nov. 1
1927
Steel Scrap.
Jan. 23 1934, 11240 a Gross Ton. rased on No. 1 heavy melting steel
$11.83 quotations at Pittsburgh,Philadelphia,
One week ago
11.08 and Chicago.
One month ago
6.751
One year ago
High.
Low.
$12.00 Jan. 23
1934
$11.33 Jan. 2
12.25 Aug. 8
1933
6.75 Jan. 3
8.50 Jan. 12
1932
6.42 July 5
11.33 Jan. 6
1931
8.50 Dec. 29
15.00 Feb. 18
1930
11.25 Dec. 6
17.58 Jan. 29
1929
14.08 Dec. 3
16.50 Dec. 31
1928
13.08 July 2
15.25 Jan. 11
1927
13.08 Nov.22
With increasing support from automotive and general
consumer requirements, steel works operations this week
are poised for another substantial rise, after advancing
five points last week to 35%, stated "Steel" of Cleveland
on Jan. 22 in its summary of the iron and steel markets.
"Steel" continued:
While a considerable portion of current raw steel output in some districts
is for stock-in preparation for the heavy finished steel demand makers
feel sure is just ahead-operations also are being buoyed by an inflow
of new orders from manufacturing industries.
Seldom has there been such a unanimity of opinion as exists now respecting the upward trend of business. Confidence on the part of consumers is being transmitted to producers. A higher volume of buying
Is noted in practically all districts.
Automotive requirements are breaking through the entanglements incident
to mechanical changes in models, and are the first of the important deferred classifications to accelerate finishing mill operations. Releases are
coming through more regularly, and have lifted some northern Ohio sheet
mill schedules nearly to capacity.
The slow start in automobile production, holding January to little if
any excess over the output in the month last year,Is backing up a tremendous
demand. The only limitation on the industry for the first half now is
believed to be its capacity to produce.
Delays are being encountered in railroad business, largely due to details
preliminary to obtaining Federal loans. Car builders have asked for
_)
and obtained an extension of time to get their code approved before bidding
on large equipment inquiries.
In rails there is a dearth of new orders, but more action on the part
of railroads toward financing their purchases. Santa Fe has placed 6,000
tons of track fastenings to accompany its recent order for 33.800 tons of
rails. Public Works Administration loans have been approved for the
purchase of 21,600 tons of rails by the Illinois Central. Boston & Maine
is asking for a loan to buy 30,000 tons of rails and fastenings. St. LouisSan Francisco is petitioning to buy 26,000 tons of rails. Change in design
of New York New Haven & Hartford's angle bars is holding up an order
for 10,000 tons of fastenings.
Is. Structural shape awards dropped to 10,415 tons from 28,252 tons in
the preceding week. Fabricators, however, express no apprehension, but
expect to be busier in February than at any time in three years. Many
projects are nearing maturity. Providence, R. I., has purchased 6.000
tons of cast pipe; Boston is taking bids on 2,500 tons. Chicago is starting
to take bids on a sanitary project which will require 10,000 tons of reinforcing steel.
While the market for tin plate is quieter, can makers are predicting
larger requirements than last year. Export business in tin plate is improving. Argentine oil interests are inquiring for 10,000 to 15,000 base
boxes. Japan also is buying. "Steel's" London cablegram stresses
rising confidence in world markets, with stronger prices in Europe.
In the United States there is an evolutionary movement in regard to
contracting, comparatively few consumers now committing themselves
for a full quarter, so long as they are given at least 10 days' notice of impending price increases. A definite price policy for the second quarter
has not yet emerged, some producers believing it would encourage buying,
others, that it might dampen the buying now getting under way.
Raw materials are strong, except beehive furnace coke, which is down
25 cents a ton. "Steel's" scrap composite is up 59 cents to $11.67, this
rise being the largest of any in the seven consecutive weeks of the upward
trend.
Steel works operations last week rose five points to 59% at Cleveland;
three to 24 at Pittsburgh; three to 243, eastern Pennsylvania; three to
32, Buffalo; 11 to 37, Youngstown. They declined three points to 29 at
Chicago; two to 86, New England, and remained 79 at Detroit and 52.
Birmingham.
116"Steel's" iron and steel composite is unchanged at $32.43; and the finished
steel composite, $51.10.
Steel ingot production for the week ended Jan. 22 is placed
at a little over 34%, according to the "Wall Street Journal"
of Jan. 24. This compares with 32%2% in the previous
week, and with 31% two weeks ago. The "Journal" added:
U. S. Steel is estimated at around 30%, against 29% in the week before,
and 28% two weeks ago. Independents are credited with a rate of 37%,
compared with 35% in the preceding week, and a shade under 33% two
weeks ago.
The following table gives the percentage of production for the nearest
corresponding week of previous years, together with the approximate
change from the week immediately preceding:
Industry.
PI
1933
1932
1931
1930
1929
1928
1927
593
Financial Chronicle
Volume 138
Up
173. +1
26 +13i
44,56+454
69 +4
835+1
77 +3
76;i-1.....
U. S. Steel.
Off
Up Off
163. +134
26 +2
48 +4
72 +5
85 +__
83 +5
86 + I
ESTIMATED UNITED STATES PRODUCTION OF COAL AND BEEHIVE
COKE (NET TONS).
Coal Year to Date.
Week Ended
Jan. 13
1934.c
Jan. 6
I934.d
Jan. 14
1933.
1933-34.
I932-33.e
1929-30.e
Bitum. coal a:
Weekly total 7,380,000 7,005,000 6.716,000 264,446,000 232,645,000 412,638,000
966,000 1,709,000
Daily avge__ 1,230,000 1,382,000 1,119,000 1,097,000
Pa. anthra. b:
Weekly total 1,683,000 1,393.000 1,029,000 39,874,000 38,538,000 57,772,000
167,500
161,900
243,800
Daily avge__ 280,500 278,600 171,500
Beehive coke:
609,000
21,300
467,400 5,050,000
19,800
Weekly total
19,100
2,486
1,908
20,616
3,550
3,300
Daily avge__
3,183
a Includes lignite, coal made into coke, local sales, and colliery fuel. b Includes
Sullivan County, washery and dredge coal, local sales, and colliery fuel. c Subject
to revision. d Revised. e Production during first week in April adjusted slightly
to make accumulation comparable with year 1933-34.
ESTIMATED WEEKLY PRODUCTION OF COAL BY STATES
(NET TONS).a
Week Ended
Jan. 6
1934.
State.
Dec. 30
1933.
Jan. 7
1933.
Jan. 9
1932.
January
1923.
Avge.d
168,000 155,000 198,000 174,000
434,001)
Alabama
72,000
51,000
72,000
70,000
93,000
Arkansas and Oklahoma
125,000 129,000 112,000 180,000
226,000
Colorado
895,000 1,010,000 704,000 1,044,000 2,111,000
Illinois
350,000 340,000 258,000 329,000
659,000
Indiana
70,000
68,000
65,000
98,000
140,000
Iowa
136,000 138,000 125,000 149,000
190,000
Kansas and Missouri
.525,000 475,000 515,000 467,000
607,000
Kentucky-Eastern
173,000 184,000 194,000 182,000
240,000
Western
55,000
33,000
28,000
28.000
39,000
Maryland
10,000
7,000
14.000
32,000
9,000
Michigan
50,000
45.000
55,000
57,000
82,000
Montana
29,000
17,000
33,000
26,000
73,000
New Mexico
50,000
56,000
63,000
55,000
50,000
North Dakota
814,000
430,000 340,000 336,000 424,000
Ohio
Pennsylvania(bituminous)._ 1,695,000 1,573,000 1,413,000 1,528,000 3,402,000
133,000
55,000
83,000
63.000
61,000
Tennessee
9,000
14,000
26,000
11.000
13,000
Texas
64,000 104,000
55,000
109.000
53,000
Utah
211,000
162,000 131.000 176,000 160,000
Virginia
74,000
26,000
45,000
32,000
26,000
Washington
West Virginia-Southern_b_ 1,310,000 1,034,000 1,276,000 1,233,000 1,134,000
762,000
374,000
295,000
436,000
462,000
Northern_c
98,000
186,000
74,000
80,000 103,000
Wyoming
11,000
7,000
5,000
7,000
12,000
Other States
Total bituminous coal
Pennsylvania anthracite
7,005.000 6,443,000 6.126,000 7,022,000 11,850,000
1,398.000 950,000 647,000 1,143,000 1,968.000
5 403 000 7.293 onno.773.000 8.165.000 13.818.000
TY,olAnal
a Figures for 1932 and 1923 only are final. b Includes operations on the N.&W.,
C.& 0., Virginian, K.& M.,and B. C.& G. c Rest of State.including Panhandle.
d Average weekly rate for entire month.
Independents.
Up
18 +1
26 +1
42 +5
87 43
82 +2
72 +2
68344-__
Off
Canada Extends Two Trade Pacts-Treaties with
Germany and Austria to Continue-The Latter for
12 Months.
From its Ottawa correspondent Jan. 5 the Montreal
"Gazette" reported the following:
In an effort to preserve Canada's markets in Europe, especially for such
natural products as wheat, the temporary agreements with Germany and
Austria have by Order-in-Council been extended, the former indefinitely
and the latter for one year. Canada's business with Germany is an important item, the exports to that country for the past 12 months being
about $10.000.000 and the purchases from Germany about $9.000,000.
While the present aggregate of trade with Austria is small, there is a chance
for natural products and the development of a considerable trade.
The terms of the Order-In-Council in both cases are almost identical.
Canada gives the intermediate tariff in exchange for the conventional
tariffs of those countries. There are, however, two or three important
conditions attached. The two Teutonic countries undertake not to impose
upon Canadian goods the surcharges which in the case of some other
countries has made business, particularly with Germany, almost impossible.
This country also has stipulated another condition, namely that goods
imported from the two countries to receive the benefit of the intermediate
tariff must come through a Canadian sea or river port. This is of benefit
to such harbors as Montreal, St. John and Halifax. Renewal of the
pact with Germany followed a visit here a short time ago of Dr. Ludwig
Kemptf, German Consul-General at Montreal. When there is some
approach to stabilized currency the chances for a permanent trade treaty
with Germany will be greatly improved.
Bituminous Coal and Anthracite Production Continues
to Show a Sharp Increase Over the Corresponding
Period in 1933.
According to the United States Bureau of Mines, Department of Commerce, estimates show that during the week
ended Jan. 13 1934 there were produced a total of 7,380,000
net tons of bituminous coal and 1,683,000 tons of anthracite
as compared with 7,005,000 tons of bituminous coal and
1,393,000 tons of anthracite in the preceding week and
6,716,000 tons of bituminous coal and 1,029,000 tons of
anthracite in the corresponding period last year. •
During the coal year to Jan. 13 1934 production of
bituminous coal amounted to 264,446,000 net tons, as
against 232,645,000 tons during the coal year to Jan. 14
1933, while anthracite output totaled 39,874,000 net tons
during the same period as compared with 38,538,000 tons
in the corresponding period a year ago. The Bureau's
statement follows:
Bituminous Coal Production in 1933 Higher than
in Preceding Year-Anthracite Output Slightly
Lower.
According to preliminary estimates 29,600,000 net tons
of bituminous coal and 4,424,000 tons of anthracite were
produced during the month of December 1933, reports
Bureau of Mines, Department of Coms Beau
States
theUnite1:1
merce. This compares with a total output of 30,582,000
tons of bituminous coal and 4,811,000 tons of anthracite
during November 1933 and 31,522,000 tons of bituminous
coal and 5,141,000 tons of anthracite during December 1932.
Production during the calendar year 1933, according to
estimates, amounted to 327,940,000 net tons of bituminous
coal and 49,399,000 tons of anthracite, as against 309,710,000
tons of bituminous coal and 49,855,000 tons of anthracite
during the 12 months ended Dec. 31 1932. Comparative
statistics follow:
ESTIMATED MONTHLY PRODUCTION OF BITUMINOUS COAL AND
ANTHRACITE IN 1933 AND 1932.a
1932.
1933.
" Total
Production
(Net
Tons).
Month.
Bit. Coalranuary
5ebruary
darch
Will
day
rune
rely
kugust
leptember
)ctober
Vovember
December
Total
27,060,000
27,134,000
23,685,000
19,523,000
22,488,000
25,320,000
29,482,000
33,910,000
29,500,000
29,656,000
30,582,000
29,600,000
25.3
23.9
27
24.7
26.4
26
25
27
25.1
26
24.8
25
327,940,000
306.2
Penn. Avail.January
February
March
kPril
May
June
July
tkugust
September
October
November
December
Total
No. of
WorkIntl
Days,
3,807,000
4,275,000
4,519.000
2,891,000
2,967,000
3,928,000
3,677,000
4,396,000
4,993,000
4,711,000
4,811,000
4,424,000
25
23.5
27
24
26
26
25
27
25
25
24
25
49,399.000
302.5
No. of
Worktrig
Days.
Average
per Workfog Day
(Net
Tons).
•
28,261,000
28,383,000
32,676,000
20,568,000
18,627,000
17,984,000
18,093,000
22,786,000
26,662,000
33,110,000
31,038,000
31,522,000
25.3
24.8
27
25.7
25.3
26
25
27
25.3
26
24.2
26
1,117,000
1,144,000
1,210,000
800,000
736,000
692,000
724,000
844,000
1,054,000
1,273,000
1,283,100
1,212,000
1,071,000 309,710,000
307.6
1,007,000
3,937,000
4,061,000
4,838,000
5,686,000
3,311,000
2,576,000
3,052,000
3,500,000
4,151,000
5.287,000
4,315,000
5,141,000
25
24.5
27
25
25
26
25
27
25
25
24
26
157,500
165.800
179,200
227,400
132,400
99,100
122,100
129,600
166,000
211,500
179,800
197,700
163,300 49,855,000
304.5
163.700
Average
Total
per Worktag Day Production
(Net
(Net
Tons),
Tons).
1,070,000
1,135,000
877,000
790,000
852,000
974,000
1,179,000
1,256,000
1.175,000
1,141,000
1,233,000
1,184,000
152,300
181.900
167,400
120,500
114,100
151,100
147,100
162,800
199,700
188,400
200,500
177,000
a Figures for 932 are final. Figures for 1933 will later be adjusted to agree
with the results of the complete canvass of production for that year.
594
Financial Chronicle
Jan. 27 1934
Current Events and Discussions
The Week with the Federal Reserve Banks.
The daily average volume of Federal Reserve bank credit
outstanding during the week ended Jan. 24, as reported
by the Federal Reserve banks,was $2,648,000,000, a decrease
of $10,000,000 compared with the preceding week and an
increase of $568,000,000 compared with the corresponding
week in 1933. After noting these facts, the Federal Reserve
Board proceeds as follows:
On Jan. 24 total Reserve bank credit amounted to $2,631,000.000, a
decrease of $15.000.000 for the week. This decrease corresponds with
decreases of $62,000,000 in money in circulation and $7,000.000 in unexpended capital funds, non-member deposits, &c., and an increase of
$8,000,000 in Treasury currency adjusted, offset in part by an increase of
$63.000,000 in member bank reserve balances.
Bills discounted declined $3,000,000 at the Federal Reserve Bank of
Boston and $4.000,000 at all Federal Reserve banks. The System's
holdings of bills bought in open market decreased $8,000,000, while holdings
of the various classes of United States Government securities were practically unchanged.
Beginning with the statement of May 28 1930, the text
accompanying the weekly condition statement of the Federal
Reserve banks was changed to show the amount of Reserve
bank credit outstanding and certain other items not included
in the condition statement, such as monetary gold stocks and
money in circulation. The Federal Reserve Board's explanation of the changes, together with the definition of the
different items, was published in the May 31 1930 issue of
the "Chronicle" on page 3797.
The statement in full for the week ended Jan. 24, in comparison with the preceding week and with the corresponding
date last year, will be found on subsequent pages, namely,
Pages 642 and 643.
Beginning with the statement of March 15 1933, new
items were included as follows:
1. "Federal Reserve bank notes in actual circulation," representing the
amount of such notes issued under the provisions of paragraph 6 of Sec. 18
of the Federal Reserve Act as amended by the Act of March 9 1933.
2. "Redemption fund-Federal Reserve bank notes," representing the
amount deposited with the Treasurer of the United States for the redemption
of such notes.
3. "3Pecia1 deposits—member banks," and "Special deposits—nonmember banks," representing the amount of segregated deposits received
from member and non-member banks.
A new section has also been added to the statement to show the amount
of Federal Reserve bank notes outstanding, held by Federal Reserve banks,
and in actual circulation, and the amount of collateral pledged against
outstanding Federal Reserve bank notes.
Changes in the, amount of Reserve bank credit outstanding and in related items during the week and the
year ended Jan. 24 1934 were as follows:
Bills discounted
Bills bought
U. 8. Government securities
Other Reserve bank credit
Increase (÷) or Decrease (—)
Since
Jan. 24 1934. Jan. 17 1934, Jan. 25 1933.
$
97,000,000 —4,000,000 —168,000,000
104,000,000 —8,000,000
+73,000,000
2,432,000,000
+669,000,000
—2,000,000 —3,000,000
—9,000,000
TOTAL RES'VE BANK CREDIT...2,631.000,000 —15,000,000
4,322,000.000
1 903,000,000 +8,000,000
+564,000,000
—234,000,000
—9,000,000
5581.000,000 —62,000,000
Money In circulation
2,851,000,000 +63,000.000
Member bank reserve balances
Unexpended capital funds, non-mem424,000,000 —7,000.000
ber deposit, &a
—30,000,000
+338,000,000
Treasury currency adjusted
+13,000,000
Returns of Member Banks in New York City and
Chicago—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 New York City, as well as those in Chicago,
on Thursday,simultaneously with the figures for the Reserve
banks themselves, and for the same week, instead of waiting
until the following Monday, before which time the statistics
covering the entire body of reporting member banks in the
different cities included cannot be got ready.
Below is the statement for the New York City member
banks and that for the Chicago member banks for the
current week, as thus issued in advance of the full statement
of the member banks, which latter will not be available until
the coming Monday. The New York City statement, of
course, also includes the brokers' loans of reporting member
banks. The grand aggregate of brokers' loans the present
week shows an increase of $21,000,000, the total of these
loans on Jan. 24 1934 standing at $779,000,000, as compared with $331,000,000 on July 27 1932, the low record
for all time since these loans have been first compiled in
1917. Loans "for own account"increased from $608,000,000
to $630,000,000, while loans "for account of out-of-town
banks" decreased from $144,000,000 to $142,000,000, but
loans "for account of others" increased from $6,000,000 to
$7,000,000.
CONDITION OF WEEKLY REPORTING MEMBER BANKS IN CENTRAL
RESERVE CITIES.
New York.
Jan. 24 1934. Jan. 17 1934. Jan. 25 1933.
Loans and investments—total
6,569,000,000 6,579,000,000 7,132,000,000
Loans—total
3,312,000,000 3,279,000,000 3,398,000,000
On securities
All other
1 646,000,000 1,620,000,000 1,562,000,000
1 666,000,000 1,659.000,000 1.836,000,000
Investments—total
3 257,000,000 3,300,000.000 3,734,000,000
U.S. Government securities
Other securities
2,201,000,000 2,185,000,000 2,631,000,000
1,056,000,000 1,115,000,000 1,103,000,000
Reserve with Federal Reserve Bank
Cash in vault
902,000,000
38,000.000
846,000,000 1,028,000,000
37,000,000
36,000,000
Net demand deposits
Time deposits
Government deposits
5,384,000,000 5,335,000,000 5,871,000,000
708,000,000 696,000,000 871,000,000
184,000,000 224,000,000
93,000,000
Due from banks
Due to banks
74,000,000
74,000,000
78,000,000
1,276,000,000 1,221,000,000 1,616,000,000
Borrowings from Federal Reserve Bank_
Loans on secur. to brokers & dealers
For own account
For account of out-of-town banks
For account of others
Total
On demand
On time
Loans and investments—total
630,000,000
142,000,000
7,000,000
608,000,000
144,000,000
6,000,000
362,000,000
11,000,000
5,000,000
779,000,000
758,000,000
378,000,000
508,000,000
271,000,000
500,000,000
258,000,000
197,000,000
181,000,000
Chicago.
1,300,000,000 1,303,000,000 1,025,000,000
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
576,000,000
582,000,000
630,000,000
278,000,000
298,000,000
280,000,000
302,000,000
346,000,000
284,000,000
724,000,000
721,000,000
395,000,000
437,000,000
287,000,000
437,000,000
284,000,000
198,000,000
197,000,000
322,000,000
42,000,000
324,000,000
42,000.000
317,000,000
18,000,000
all
933.000,000
317,000,000
11,000,000
1,112,000,000 1,117,000,000
338,000,000 337,000,000
27,000,000
28,000,000
194,000,000
307,000,000
182,000,000
294,000.000
303,000,000.
299,000,000
Borrowings from Federal Reserve Bank_
Complete Returns of the Member Banks of the Federal
Reserve System for the Preceding Week.
The Federal Reserve Board resumed on May 15 1933 the
publication of its weekly condition statement of reporting
member banks in leading cities, which had been discontinued
after the report issued on March 6, giving the figures for
March 1. The present statement covers banks in 90 leading
cities instead of 101 leading cities as formerly, and shows
figures as of Wednesday, Jan. 17 1934, with comparisons for
Jan. 10 1934 and Jan. 18 1Q33.
As is known, the publication of the returns for the New
York and Chicago member banks was never interrupted.
These are given out on Thursday, simultaneously with the
figures for the Reserve banks themselves, and cover the
same week,instead of being held until the following Monday,
before which time the statistics covering the entire body of
reporting member banks in 90 cities cannot be got ready.
In the following will be found the comments of the Federal
Reserve Board respecting the returns of the entire body of
reporting member banks of the Federal Reserve System for
the week ended with close of business on Jan. 17.
The Federal Reserve Board's condition statement of weekly reporting
member banks In 90 leading cities on Jan. 17 shows increases for the week of
$143.000,000 in net demand deposits, $9,000,000 in time deposits and
$59.000,000 in loans and investments, and a decrease of $108,000,000 in
Government deposits.
Loans on securities declined $10,000,000 at reporting member banks in
the Boston district and $11,000,000 at all reporting member banks, and
increased $8,000,000 in the Philadelphia district. "All other" loans
increased $15,000,000 in the New York district, $9,000,000 in the Boston
district and $20,000,000 at all reporting banks.
Holdings of United States Government securities increased $12.000,000.
in the New York district. $8.000,000 in the Boston district and $13,000,000
at all reporting member banks, and declined $6,000,000 each in the Philadelphia and St. Louis districts. Holdings of other securities increased
$25.000,000 in the Chicago district, $19,000.000 In the New York district
and $37.000,000 at all reporting banks.
Borrowings of weekly reporting member banks from Federal Reserve
banks aggregated $21.000,000, unchanged from the week before.
Licensed member banks formerly included in the condition statement of
member banks in 101 leading cities, but not now included in the
weekly
statement, had total loans and investments of $970,000,000 and net demand,
time and Government deposits of $998,000,000 on Jan. 17, compared with.
$968,000,000 and $992,000,000, respectively, on Jan. 10.
Financial Chronicle
Volume 138
A summary of the principal assets and liabilities of the reporting member
banks, in 90 leading cities, that are now Included in the statement, together
with changes for the week and the year ended Jan. 17 1934, follows:
Increase (+) or Decrease (-)
Since
Jan. 17 1934. Jan. 10 1934. Jan. 18 1933.
$
Loans and investments-total--16,447,000,000
+59,000,000 -213,000,000
Loans-total
On securities
All other
Investments-total
8,218,000,000
+9,000,000
-496,000,000
3,486,000,000
4,732,000,000
-11,000,000
+20,000,000
-213,000,000
-283,000,000
8,229,000,000
+50,000,000
+283,000,000
U.S. Government securities-- 5,223,000,000
Other securities
3,006,000,000
+13,000,000
+37,000,000
1,974,000,000
229,000,000
-9,000,000
-19,000,000
+225,000,000
+55,000.000
-17,000,000
+45,000,000
11,094,000,000
4,352,000,000
463,000,000
+143,000,000
+9,000,000
-108,000,000
-119,000,000
-305,000,000
+225,000.000
1,274,000,000
2,908,000,000
+64,000,000
+104,000,000
-446,000,000
-464,000,000
Reserve with F. R. banks
Cash In vault
Net demand deposits
Time deposits
Government deposits
Due from banks
Due to banks
Borrowings from F. R. banks
21,000,000
-13,000.000
Production of Gold and Silver in the United States,
According to the Director of the Mint-Gold
Output in 1933 Valued at $50,337,800-Decrease
of $288,200 as Compared with Previous YearSilver Production Valued at $7,638,690, Comparing with $6,762,578 in 1932.
Preliminary figures of gold and silver production in the
United States in 1933, made public on Jan. 13 by the
Director of the Mint, place the output of gold in the late
year at 2,435,091 ounces, valued at $50,337,800. These
figures compare with 2,449,032 ounces produced in 1932,
to the value of $50,626,000. The silver output in 1933 is
estimated at 22,141,130 ounces, with a value of $7,638,690.
in 1932 the amount of silver produced was 23,980,773 ounces,
the value of which was $6,762,578. The 1933 figures of
production were made public as follows at the Office of the
Director of the Mint:
PRODUCTION OF GOLD AND SILVER IN THE UNITED STATES IN 1933.
(Arrivals at United States Mints and Assay Offices and at Private Refineries.)
The Bureau of the Mint, with the co-operation of the Bureau of Mines, has
issued the following statement of the preliminary estimate of refinery production
of gold and silver in the United States during the calendar year 1933.
Gold.
States.
Ounces.
Alaska
Alabama
Arizona
California
Colorado
Georgia
Idaho
Maryland
Michigan
Missouri
Montana
Nevada
New Mexico
North Carolina
Oregon
Pennsylvania
South Carolina
South Dakota
Tennessee
Texas
Utah
Virginia
Washington
Wyoming
Puerto Rico
Philippine Islands
Silver.
Value.*
418,332
5
48,955
565,426
249,581
421
53,004
15
10
$8,647,700
100
1,012,000
11,688,400
5,159,300
8,700
1,095,700
300
200
56,783
100,422
26,016
692
18,987
247
150
508.513
116
1,173,800
2,076,900
537,800
14,300
392,500
5,100
3,100
10,511.900
2,400
97,984
19
4,842
2,206
29
282,336
2,025,500
400
100,100
45,600
600
5,836,400
Ounces.
VaZue.a
154,602
$53,338
1,419,842
365,786
2,139,635
53
6,923,877
489,846
126,196
738,174
18
2,388,738
140,013
20,000
3,533,702
948,168
1,214,282
6,866
12,459
2,231
19
124,540
19,123
220
4,917,981
48,305
6,900
1,219,127
327,118
418,927
2,369
4,298
770
7
42.966
6,597
76
1,696,703
12,907
346
2
184,476
4,453
119
1
63,644
Totals_
2,435,091
$50.337.800
22.141.130
17.635.690
• Gold is valued at the legal coinage rate of $20.67 per fine ounce. Newly
domestic gold was salab e on the world market at market rates from Aug.mined
29 to
Oct. 24; London quotations varied between 127s. 7d. and 1348.8d., which at current
exchange rates were equivalent to about $29.25 to $32.27. After Oct. 24
new
domestic gold was purchased by the United States Reconstruction Finance Corporation at rates fixed under the Executive Order of Oct. 25 1933 from $31.36 to
$34.06 per fine ounce.
a Silver is valued at 34.5 cents per fine ounce, the approximate average New
York price of bar silver.
Prior year comparisons indicate decrease of $288,200 in gold and 1,839,643
ounces decrease in silver for 1933. Comparison with the year of largest production.
1915, gold $101,035,700 and silver 74,961,075 ounces, indicate decreases of gold
$50,697,900 and of silver 52,819,945 ounces.
The figures of gold and silver production in 1932 were
given in our issue of May 20 1933, page 3442.
United States Gold Stocks Fell $184,656,488 in 1933$4,322,865,873 Held at End of Year.
America's stock of monetary gold at the end of December
was $4,322,865,873, as compared with $4,507,522,361 a year
earlier, the Treasury reported on Jan. 11. Noting this in
Washington advices the New York "Times" said:
Holdings of gold were as follows:
By the Treasury. $3,201,740,958: by the Federal Reserve Banks. $810,154,273. and in circulation, $310,970.642.
In addition to the gold there was $1,159,182,439 in gold certificates in
the total money stocks of the country. All was outside of the Treasury$946.133,120 in the Federal Reserve Banks and $213,049,319 in circulation.
On Feb. 28, just before all gold was called, there was $571,337,850 in
gold coin and bullion and 8649,563,859 in gold certificates in circulation.
The gold in the Treasury on Dec. 31 was distributed as follows:
In trust against gold and silver certificates and Treasury notes of 1890.
$1.159,182.439: reserve against United States notes and Treasury notes of
1890, $156,039.088; held for Federal Reserve Banks, $1,767.949,566, and
all other money," $118,566,865.
595
The total money stocks of the country Dec. 31 were $10,209.857.255.
an increase of $505,000,000 in a year. This increase was due to increased
issues of Federal Reserve notes, Federal Reserve Bank notes and national
bank notes, which more than offset the loss in gold.
Federal Reserve note stock Dec. 31 amounted to $3,349,806,751, an
increase of $362,000,000; Federal Reserve Bank notes, $236,249,833. and
national bank notes, $987.514,378, an increase of $106,000,000.
Money circulation at the end of the year was $5,804,469,601, an increase
of $62 000,000 in the month and $130,000,000 in a year. The per capita
circulation, based on an estimated population of 126,129.000, was $48.02.
compared with 845.56 a month earlier and $45.31 on Dec. 31 1932.
The Federal Reserve Banks had $2,294.423,108 in money stocks, an
increase of $156.000,000 in a year. The only important holding by the
banks, with the exception of gold, was $288,721,095 in Federal Reserve
notes.
Of total money, the Treasury had $3,765,576,953, an increase of 853,000.000 in a year.
J. P. Morgan Leaves Panama-Sails for Galapagos
Islands.
J. P. Morgan, with John W. Davis and other guests,
sailed on Jan. 22 for the Galapagos Islands on the financier's
yacht "Corsair." They expect to return in two weeks.
According to a cablegram from Balboa, Canal Zone, to the
New York "Times" Jan. 23, which also said:
With guests, captain and crew of sixty, Mr. Morgan's "Corsair" left
the Tebo yacht basin in Brooklyn on Jan. 6 on a cruise which, it was said
then, would last a month in the Caribbean Sea.
An item regarding Mr. Morgan's trip appeared in our
issue of Jan. 20, page 426.
United States Policy on Gold Upheld by J. M. Keynes"Real Progress" Seen in Course Between Old
Orthodoxy and Extreme Inflation-Britain Is to
Aid-London "Economist" Also Backs Impounding
of Profit on the Reserve Bank's Metal.
J. M. Keynes, in an article in the "New Statesman" concerning President Roosevelt's gold policy, says that unless
prices in the United States rise far more than seems likely
France's position will be very difficult and probably untenable. But he adds that inasmuch as the United States
is about to return to gold within certain limits of fluctuation
France is free to rectify her position by altering her own
gold parity, while Britain is free to allow sterling to depreciate on the franc or appreciate on the dollar or to enjoy and
suffer a bit of both. The foregoing is from a wireless message Jan. 19 to the New York "Times," which further
quoted Mr. Keynes as follows:
"President Roosevelt has virtually offered this country and France an
invitation to a monetary conference," continues Mr. Keynes. "At the
same time he has set sufficient limits to the uncertainty on his own future
policy to provide a basis for discussion. Apart from the difficulties of
transition, I see nothing in the President's scheme which need upset us,
and much we should do well to approve."
Mr. Keynes continues:
"It is true that the rest of us will not find it easy to come to terms with
him unless we substantially accept his view of the future value of gold
in terms of the leading world currencies. But why not? A high value
for gold is in fact to our interest as much as to his.
Problems of Agreement.
"The task of coming to terms with the President sets more anxious
problems for gold currency countries than for us. It is reasonably certain that the existing gold value of the franc and the florin can be scarcely
compatible in the long run with the new gold value of the dollar.
"The gold currency countries have to choose whether they will embark
on an expensive campaign probably doomed to ultimate failure or whether
they will eat some of their many unnecessary brave words about maintaining the existing parities on gold at all costs. If, in the end, the result
of the President's action is to knock them off their gold perches, that will
surely be in the interest of their citizens.
"If the President's phrases about his ultimate objective of stabilizing
the purchasing power of the dollar are meant seriously the purpose of the
monetary conference would not be return to the old-fashioned gold standard.
The initial relative exchange values for several currencies having been fixed,
the conference would presumably aim for the future not at rigid gold parities
but at provisional parities from which the parties to the conference would
agree not to depart except for substantial reasons arising out of their balance
of trade or the exigencies of their domestic price policy.
Real Progress Is Seen.
"I cannot doubt but that the President's announcement means real
progress. He has adopted a middle course between old-fashioned orthodoxy
and extreme inflation. I see nothing in his policy which need be disturbing
to business confidence. In conjunction with his spending program, which
seems at last getting under way,it is likely to succeed in putting the United
States on the road to recovery."
The London "Economist" does not agree with President Roosevelt's
American critics who have denounced as "robbery" his impounding of the
profit on the Federal Reserve Banks' gold.
"It is more logical," says the "Economist," "to regard it as a tax on
the unearned increment, since the profit arose entirely out of the Government's actions regarding the dollar. A similar profit was taken by the
governments of most European countries which devalued their currencies
after the war, and should the pound ever definitely be devalued the profit
on the gold holdings in the Bank of England would, under the terms of the
Currency Act of 1928, automatically accrue to the Treasury."
Canadian Holders of United States Gold Certificates
Do Not Risk Double Forfeiture Penalty.
Canadian holders of United States gold certificates need
not fear seizure and penalizing of their holdmgs, according
to unofficial opinion expressed in Washington, a dispatch of
Jan. 18 from that city to the New York "Herald Tribune"
596
Financial Chronicle
said. Inquiries from Canadians as to whether they risked
the double forfeiture penalty if they failed to turn in gold
certificates elicited from the Treasury the reply that no ruling
on the issue has been made. It was pointed out, however,
that the time for surrendering certificates without penalty
has been extended.
Canadian Parliament May Devalue Currency in
Accordance with United States Program.
A Toronto dispatch of Jan. 17 to the Chicago "Journal
of Commerce" stated that the Canadian Parliament, before
the end of the present session, will approve a Government
bill reducing the gold content of the Canadian dollar, as a
result of President Roosevelt's devaluation program for this
country. The dispatch added that since most of Canada's
external trade and financing is carried on with the United
States and the United Kingdom, there are widespread demands from both exporters and importers for the early
stabilization of Canadian exchange in terms of the United
States dollar and the pound sterling.
Belgium to Stay on Gold—Bank Governor Finds
Brighter Trade Outlook.
The following (copyright) from Brussels Jan. 21 is from
the New York "Herald Tribune":
The unwavering attachment of Belgium to the gold standard was solemnly
proclaimed by Louis Franck, Governor of the Bank of Belgium. at the
Bank's yearly meeting. Ile also indicated that a notable improvement
could be seen on the horizon of the world and Belgium. Despite the
monetary disorder reigning in many countries, he said one could depict
the change to better in the general situation and the ground appeared much
sounder now than before.
The Governor expressed the hope that the return of the Anglo-Saxon
currencies to a gold basis would soon bring a restoration of confidence and
permit a redistribution of gold and an eventual lowering of trade barriers
between nations.
At the end of 1933. the Belgium commercial balance was satisfactory in
Mr. Franck's opinion, while he added that all attempts of international
speculation during the last year to detach the Belgian franc from the
gold basis failed in their object.
Shifting of Gold Listed by League of Nations—
Statistics Show a Redistribution Long Sought as
Aid to Recovery—Sterling Countries Gain—Bank
of England Claims 60% of Total Increase.
Evidence that during 1933 there occurred to a considerable
degree that "redistribution of gold," which some authorities
long have been demanding for the sake of recovery can be
found in the figures giving the monetary gold reserves in
the January number of the League of Nations' monthly
bulletin of statistics, published on Jan. 22, according to
Geneva advices on that date to the New York "Times",
which continued:
At the end of 1933 the reserves of the block of sterling countries, composed of England, Sweden, Portugal and Greece, totaled S1,088,000,000
gold,as against $675,000,000 the year before. Of this increase of $414,000,000, the Bank of England received $346.000,000, a rise of 60%.
In the same 12 months the reserves of four members of the gold bloc,
France, Switzerland, Holland and Poland, fell from $4,205,000,000 to
$3.831,000,000, a decline of $374,000,000. to which France contributed
S226,000,000 and Switzerland $91,000,000. Of the other members of the
gold bloc, the Italian reserves increased $66,000,000 and the Belgian $19,000,000. Those of Germany fell from $209,000,000 to $109,000,000.
The United States lost only $33.000,000.
The world's total of geld reserves, excluding those of Russia, rose only
$18,000,000, from 811,633,000,000 to $11,651,000,000. Aside from
England, the great gainer is Russia, whose reserves rose from 8348,000,000
in July 1932. to $416,000,000 in September 1933. Russia now ranks fifth
in gold reserves, following the United States, France, England and Spain.
The dozen normally debtor countries in Europe, Latin America and Asia increased their gold reserves during the year.
The value of world trade, according to the bulletin, increased in the
third quarter ot 1933, as compared to the first quarter, by 3% in imports
and 7% in exports. Ordinarily there is a fall in trade during the third
quarter. All figures available for November and December indicate that
trade decreased during the fourth quarter, although less than the seasonal
variations were made. With 1929 representing an index of 100. the
world's trade in the third quarter of 1933 was 72.2 and the price index was
48, as compared with 71.2 and 49 during the first quarter of 1933 and
68.2 and 51.5 for the third quarter of 1932.
For ihe 11 months of 1933 the monthly average was: Imports, $996,000,000 gold, and exports,$920,000,000, against the averages, respectively,
of 31,118,000.000 and $1,022,000,000.
Suit for Gold Payment Brought Against Copenhagen
Telephone Co.—Danish Business Man Insists on
Terms of Bonds Issued in United States.
From Copenhagen, Jan. 18, a wireless message to the
New York "Times" said:
The first hearing began to-day in a lawsuit against the Copenhagen
Telephone Co. by a Danish business man. A. Fooderberg, who holds bonds
In the sum of 10,000 kroner issued by the company in 1929 through the
Guaranty Trust Co. of Now York to cover a loan of $7,000,000. Interest
was to have been paid in gold at 5%, but this was discontinued when the
United States went off gold.
Mr. Foederberg contends he was prompted to buy those bonds by the
pledge of payment of interest in gold.
Although the sum involved in the suit is small, the decision of the Court
Is awaited anxiously in Denmark, as the verdict will affect all other Danish
loans raised in America before it abandoned gold. The total amount of
these loans is estimated at $15,000,000.
Jan. 27 1934
Philadelphia Bourse Places Itself on Record in Favor
of Gold Standard.
Directors of the Philadelphia Bourse have placed themselves on record as in favor of the gold standard with a
fixed gold value of the dollar. The Philadelphia "Public
Ledger" of Jan. 15 stated that action was taken in the
adoption of a resolution when consideration was given to the
monetary policy of the Administration at Washington
and followed the appointment of a special committee consisting of Arthur V. Morton, Stephen E. Ruth and Lawrence
J. Morris, embodying the views of the Bourse directorate.
The Committee, in behalf of the Bourse, is quoted as saying:
We believe that neither public nor private credit can be maintained
or any business or contract covering the future be reasonably undertaken
in the absence of a stable medium of exchange.
We believe in the maintenance of the integrity of our currency, the
restoration and continuance of the gold standard with a fixed gold value
of the dollar properly determined, and the balancing of the public budgets.
In advocating a sound and adequate currency, we believe It is necessary
to provide such basis for faith and credit in currency as will permit their
healthy employment in the normal processes of business enterprise.
Bank of France Stresses Faith in Gold Standard—
Annual Report Terms Convertibility of Currency
Indispensable Condition of Sound Economics—
Bank Lost More Than Nine Billion Francs in Gold
Reserves Last Year.
A deep faith in the gold standard and a distrust for all
"artificial" remedies for the depression which threaten that
standard were stressed in the annual report of the Bank of
France transmitted to shareholders on Jan. 25. Although
the report made no specific mention of the United States or
other countries which have abandoned the gold standard, a
significant passage said that "the experience of 1933 cannot
but reinforce in our eyes the value of the doctrines to which
we have been and are still firmly attached. We remain more
than ever convinced that the convertibility of currency into
gold is an indispensable condition of sound economic and
social discipline."
A loss of 9,463,000,000 francs for 1933 was reported by the
bank. Of this amount the loss in gold was 6,169,102,026
francs, while the balance was in foreign exchange. Further
details of the report follow, as contained in a Paris dispatch
of Jan. 25 to the "Wall Street Journal":
The Bank of France declared a dividend of IC`^,j,for 1933, the same as
that for 1932. Gross and net profits were both b, ow 1932, however, with
gross profits at 396,000,000 francs, against 711.800,000 francs, and net
profits at 83,000,000 francs against 125,000,008"francs. General expenditures totaled 325,000,000 francs, compared with 445,000,000 francs in
1932, while taxation accounted for 09,000.000 francs, compared with
141.000.000 francs.
Artificial measures to which nations always tend to resort in times of
depression are described as producing illusory or precarious improvements.
It Is declared that international exchanges cannot revive until the value of
major currencies has been definitely fixed.
Finally, monetary stability is alleged to have a still higher significance.
"It alone appears suitable to guarantee the progressive evolution of human
societies in order and justice," the report says. It concludes: "France remains faithful thereto andbrejects instinctively facile and adventurous solutions which she feels are contrary to her fundamental interests and genius.':
Tax Reduction Demanded.
p The report emphasizes that the bank continued to give absolutely free
play to the gold standard and lost 9,500,000,000 francs of gold over the
year. This loss, even after allowance for hoarding, reveals that France's
balance of payments was adverse, due to the surplus of imports, the exodus
of capitaliand the shrinkage of invisible exports. While France's natural
riches and the power of her labor and thrift assure a triumph over the dopression, nevertheless, the Bank insists upon the necessity of reduction of
costs or production and it demands a reduction in taxation as the main contribution to lower production costs.
pg Attention is:drawn in the report to liquidation of the bank's foreign balances by means of the sterling loan operation which was carried out for the
benefit of the French Treasury last spring. The reduction in the foreign
balances was accomplished without disturbance to the markets and marks
the;almost complete disappearance of the last traces of the gold exchange
standard, the imperfections and abuses of which were proved by the experience of recent years. The bank states that since Jan. 1 1931, the total
foreign balances held by all European central banks declined from 48,400,
000,000 francs to 3,921,000,000 francs, or 95%. They now represent 2.5%
of total gold reserves as against 35%•
Long Term Money Tight.
Tightness in long term money due to constant borrowing by the state is
held to be an obstruction to recovery, as is also the considerable hoarding of
old, although hoarding of bank notes appears to have ceased.
The Bank stated that the reduction of 10.000,000.000 francs in sight
liabilities over the year corresponds exactly with the reduction in gold and
foreign balances, but it was effected entirely at the expense of the current
accounts of banks and private individuals since the Treasury's balance was
unchanged for the year and the 2,000,000,000 francs reduction in the note
issue was compensated by issue of new coins.
ThelBank professes its readiness to meet liberally all legitimate demands
for creditjand thereby to renew contact with the market from which it has
been too long divorced.
France Acts to Protect Gold Loans Issued on French
Market.
A wireless message Jan. 25 from Paris to the Now York
"Times" said:
A decree published in to-day's Official Journal creates a government commission to draw up a list of gold loans issued on the French market before
Volume 138
Financial Chronicle
the war, to examine the terms of those loans and submit proposals regarding
proper means to safeguard the interests of French investors.
The commission is composed of three Senators, six Deputies and four
other high government officials. It will make its first report in July and an
annual report every July thereafter.
Among the loans coming under scrutiny are certain American ones containing the gold clause, which has been repudiated.
Wyser & Diner Urges Owners of German Bonds to
Retain Defaulted Coupons.
A warning to holders of defaulted German Government
and municipal bonds against selling the interest coupons has
been issued by the firm of Wyser & Diner. The firm reports
that perplexed holders of German obligations have been induced through lack of understanding of the standstill and
other negotiations to sell defaulted coupons and find as a
result that they cannot sell the bonds themselves. Consequently, they stand to face losses in addition to those already
resulting from a depreciation in value which had already
taken place. The firm's admonition says in part:
"These bonds in order to be salable must have all defaulted coupons
attached in order to constitute a good delivery. Once the defaulted coupons
are detached and sold the bonds cannot be disposed of on the Exchange
where they are listed, and only in exceptional cases can an outside market
be found for the bonds without the defaulted coupons, and in such cases
they can only be sold at a sacrifice price, ranging from four to five points
or $50 Per $1,000 bond below the regular listed market.
"It is believed that before the end of the month the scrip will be issued.
Hence, it is to the best interest of the holders of such coupons to await the
issuance of the scrip and not to detach same until actual payment in cash
and scrip is arranged for by the Gold Discount Bank."
Hungarian Loan of 1924—Government Provides Foreign
Currencies to Meet 50% of Feb. 1 Interest—Deposit
of Treasury Bill With National Bank of Hungary
for Balance.
Speyer & Co., as American fiscal agents, have been informed by the Trustees of the State Loan of the Kingdom
of Hungary 1924 that the Hungarian Government has
provided foreign currencies to meet 50% of the interest due
on Feb. 1 1934. For the balance, Pengo Treasury bills of
the Government have been deposited to the credit of the
Trustees with the National Bank of Hungary.
As directed by the Trustees, Speyer & Co. announce that
they are prepared to make this part payment of 50% of the
face value of the coupon, to the holders of the Feb. 1 1934
coupons of the dollar bonds, on or after that date. Such
coupons will be marked "Paid 50%" and returned to the
bondholders to be re-attachr to their bonds, in order that
their claim for the balance may be preserved.
Holland to Convert East Indies Loans—Offers 4%
Guilder Bonds for the Dollar 532s and 6s, Totaling
$122,535,000.
Announcement is made by the Government of Holland of
the issuance of a 4% Dutch East Indies conversion loan in
guilders running 40 years and State guaranteed. Advices
Jan. 19 to the New York "Times" from The Hague, added:
The purpose is to convert the 5%% and the 6% Dutch East Indies
dollar bonds outstanding in the amount of $122,535,000.
Each $1,000 bond may be exchanged for a 2,500-guilder bond, this being
equivalent to the gold value. Holders falling to convert by Feb. 15 will
receive a 2,450-guilder bond for each $1,000 bond.
Amsterdam reports reaching here from the United States say that Dutch
trade in America is suffering from confusion between "Dutch" and
"Deutsch," resulting in goods from Holland coming in under boycott as
German goods.
Commenting on the above the "Times" said:
The Dutch East Indies Government has four dollar loans outstanding
in this market, having been marketed here in 1922 and 1923 in the original
amount of $150.000.000. Cancellations have been made for account of
the sinking fund.
$122,535,000 Outstanding Dutch East Indies Dollar
Loans to Be Converted—Guaranty Trust Co., New
York, to Handle Conversion in United States.
Guaranty Trust Company of New York has announced
that it will be the exclusive Agent in the United States for
the Dutch Colonial Government to handle the conversion of
the Dutch East Indies Dollar Loans, of which there are
outstanding $122,535,000. There are four issues, namely:
25-Year External 6% Gold Bonds due Jan. 1 1947.
40-Year External Sinking Fund 6% Gold Bonds due March 11962.
30-Year External Sinking Fund 5%% Gold Bonds due March 1 1953.
36-Year External Sinking Fund 5%% Gold Bonds due Nov. 1 1953.
According to the Bill recently introduced in the Dutch
Parliament, the holder of every $1,000 bond, irrespective of
the issue, will be entitled to new Internal 4% Guilder Bonds
of Dutch East Indies, guaranteed by the Kingdom of the
Netherlands, redeemable in 40 years, in the amount of 2,500
guilders face amount, and announcement issued by the
Guaranty Trust Co. on Jan. 24 said. Holders of $500 bonds
will receive new guilder bonds in the amount of 1,200 guilders
as well as a draft for 50 guilders cash. The announcement
continued:
597
The Trust Company is authorized to take in bonds only up to the close of
business, Feb. 14, and for all bonds so received, registered, negotiable
receipts will be given by the Trust Company in their capacity as the Government's agent. The receipts will provide that if the new loan should not be
issued prior to April 1, the bonds will then be returnable to the holdess, in
which event the Government,through the Trust Company, will pay interest
on the dollar bonds at the rate of 2.50 guilders to the dollar. Inasmuch as
two of the issues have coupons becoming due March 1. special arrangements
have been made whereby the Trust Company will mail guilder checks to
the receipt holders as soon as practicable after Feb.28. At the present time.
with guilders at 64, this means that for a $30 coupon the holder will receive
approximately $48.
The Trust Company has called attention to the fact that when depositing
bonds with it, it will be necessary for holders to sign a special form of letter
of transmittal, copies of which may be secured at its Trust Department.
Spain Lowers the Peseta.
Under date of Jan. 25 Associated Press accounts from
Madrid stated:
The Government exchange bureau has lowered the peseta slightly to
benefit exportation for a period, inasmuch as the dollar and the pound are
depressed, Antonio Lara, Minister of the Treasury, announced to-day.
The peseta decrease to-day was little—about 24 centimes per dollar. The
quotation was 7.78 pesetas to the dollar as compared with 7.58 on Monday.
From the "Wall Street Journal" of Jan. 26 we take the
following (United Press) from Madrid:
The fall of the peseta this week was described by the Spanish Minister
of Finance as a "step against the fall of the dollar and the pound." The
director of the exchange control commission confirmed that the peseta had
been permitted to drop in order to protect Spanish exporters. He intimated.
however, that the peseta would remain at its present level of 7.88 to the
dollar.
Czechoslovak Crown Declines 7% iri Value—Drop
Caused by Fear Finance Minister Will Enforce His
Exchange Control Plan.
From Prague, Jan. 24 a wireless message to the New York
"Times" said:
The plans of Finance Minister Englis to grant a 30% premium to Czechoslovak exporters while making a charge of 30% for foreign currency needed
by importers caused the crown, the only Eastern European currency which
has remained unshaken during the financial crisis of the last 12 years. for
the first time since 1922 to register a considerable decline in its international
value.
In general the crown dropped 7%. Offerings in Czechoslovak currency
were especially strong in Vienna, where not only Austrian but also foreign
markets'tried to exchange their Czechoslovak crowns for other currencies.
Dr. Englis's plan is bitterly opposed by the Czechoslovak National Bank
and by many financial experts, who fear that the establishment of control
over foreign exchange may lead to a general devaluation of the currency.
The idea of Dr. Englis is to promote by this export premium Czechoslovak
exports, which have been badly handicapped by the competition of other
devaluated currencies, especially the pound and the blocked mark.
The government two days ago announced that the country would not
abandon the gold standard and that the plans of Dr. Englis were far from
being realized. But the mere discussion of the question has had an unfavorable effect on the currency.
The Czechoslovak National Bank has made preparations to defend the
crown t.-morrow on the international market.
Turkey Reported to Have Obtained Loan from Russian
Soviet Union—$8,000,000 Credit Extended by
Moscow Has Economic and Political Importance.
Walter Duranty in a cablegram from Moscow, Jan. 25,
to the New York "Times" said in part:
One of the most interesting items in recent international news is modestly
published to-day on the last page of the Moscow newspaper "Economic
Life," under the caption "Signature of Turko-Soviet Protocol." It relates
that the Soviet Union has granted to Turkey an $8,000,000 gold credit
for the purchase of machines required by Turkey's industrialization program.
The chief importance of this is political, as fresh proof of the SovietTurkish friendship, but economically also its significance is considerable
as the first outright step that the Soviet Government has taken to win
world trade by the capitalist method of loan-finance.
Furthermore, it is a Soviet acknowledgment of the fact that the financial
stability of a debtor matters less than the importance of getting its own
wheels turning, provided, of course, that the debt will be spent in this
country.
No one takes an over-optimistic view of Turkey's paying capacity to-day,
but the Russians realize, so the writer is informed, that this country would
lose nothing even if Turkey should default except a tiny fraction of its
natural resources in coal, iron and the other products required to make
machines. It is not expected here that Turkey will default, but in any
case every payment that Turkey makes will be regarded as "velvet," once
the initial cost of the natural resources has been repaid.
United States Recognizes Mendieta Government in
Cuba—Action Taken by President Roosevelt
Following Downfall of Grau San Martin and Hevia
Regimes Last Week—War Vessels Being Withdrawn from Cuban Waters—Envoys of 17 Latin
American Nations Conferred at White House
Before Recognition Was Announced.
Formal recognition was extended the Government of Cuba
by the United States on Jan. 23, after the speedy overthrow
of two regimes on the Island last week, whtn Carlos Hevia
succeeded Dr. Ramon Grau San Martin as President on
Jan. 15 and was himself succeeded on Jan. 18 by Colonel
Carlos Mendieta, leader of the rebellion against former
President Gerardo Machado in 1931 and head of the Nationalist party. Colonel Mendieta's assumption of office
appeared to meet with the satisfaction of most Cuban political
groups. President Roosevelt's action in extending formal
598
Financial Chronicle
recognition to the Mendieta Government as interpreted as
expressing confidence that months of chaos in Cuban affairs
were ended. It was reported from Washington that efforts
might later be made to modify the Platt Amendment, and to
reopen the questions of the Cuban commercial treaty and the
external debt.
Senor Hevia was Secretary of Agriculture in the Grau
Cabinet, and after the resignation of President Gran San
Martin on Jan. 15 he was selected as President by the
revolutionary junta, despite the opposition of the student
party. President Grau San Martin resigned, it was reported,
because he had been informed that the United States would
never extend recognition while he was in office. Senor
Hevia actually only held the office for about 48 hours and
he resigned early on the morning on Jan. 18 after all leading
factions agreed on the selection of Colonel Mendieta. The
latter was sworn in on the same day.
We quote in part from a Havana dispatch of Jan. 18 to
the New York "Times" regarding the latest change in the
Cuban Government:
At a meeting of representatives of all factions at the Presidential palace
early this morning Colonel Mendieta was formally selected as the new
President. After the meeting Dr. Carlos Saladrigas, who was Secretary of
Justice in the de Cespedes administration and was one of the chiefs of the
ABC revolutionary organization, said:
"The selection of Colonel Mendieta was a spontaneous response to public
demand. He is not installed for any specified period of time, nor were any
conditions imposed upon him."
• Confusion as to Succession.
There was some confusion, due to Senor Hevia having delivered his
resignation to the revolutionary junta instead of to the Chief Justice. The
opinion was expressed that Secretary of State Manuel Marquez Sterling
but it
technically became President upon the retirement of Senor Hevia,
was decided the technicality had no significance as Cuba is without a
Constitution at present. Thus Cuba was left without a President from
1:30 a. m. this morning until 12:30 p. m. this afternoon.
The simple ceremony was soon concluded and the new President responded
to congratulations of members of all the political and revolutionary factions
who filled the immense reception salon to overflowing.
As ceremonial Cuban flags were unfurled and raised atop the palace
flagpole at the termination of the ceremony the thousands who surrounded
the palace went wild with excitement and enthusiasm. Men and women
threw hats into the air and embraced their neighbors with abandons shouting "Viva Mendietal Viva la Republica!"
Jan. 27 1934
President Acknowledges Cheers.
Crowds surging from all approaches immediately surrounded the Presidential Palace, shouting for Colonel Mendieta and cheering for the United
States Government. President and Senora Mendieta appeared briefly on
a small balcony of the President's quarters on the third floor of the palace.
With tears streaming down his face the Chief Executive waved and bowed
to the public.
Anti-aircraft guns and machine guns on the roof of the palace took up
the firing, drowning out any speech or words the President might have
desired to make.
It is understood that virtually simultaneously with the recognition by the
United States 13 other nations placed their stamp of approval on the
Mendieta Government.
Panama Banks Reduce Interest Rates.
The reduction of interest rates on secured bank loans which
has just taken effect in Panama is expected to exert a favorable influence on business and industry in that Republic,
according to Acting Commercial Attache A. Cyril Crillery
in a report to the Commerce Department. In its announcement Jan. 10 the Department said:
The new rate of 6% has been agreed to by Panama's National Bank, the
Banco National, and the foreign branch banks operating in the country.
The former bank rate on these loans was from 8 to 9%, depending on the
transactions involved.
It is estimated that local banks have approximately $6,000.000 invested
in loans to firms and individuals established in Panama. Considerable
sums of money believed to have been leaving the country in payment of
interest on loans, will remain in the country under the new rate, according
to local opinion.
Two American banks and one Canadian bank maintain branch offices in
Panama, the report shows.
Brazilian Finance Minister Denies Report That Country Fails to Fulfill Frozen Funds Agreement.
From Rio de Janeiro, Jan. 25, a cablegram to the New
York "Times" said:
A Havana dispatch of Jan. 18 to the New York "Herald
Tribune" added the following infbrmation:
Charges attributed to the Council on Inter-American Relations that the
Banco do Brazil was not fulfilling the frozen-funds agreement reached between Brazil and United States interests last July 17 were published here
to-day in a dispatch from New York.
The Banco do Brazil, according to the dispatch, had refused to grant
exchange between Dec. 9 and Dec. 15. with the result that about E15,000.000 had accumulated here.
Finance Minister Aranha contradicted the charge, asserting the size of
the amount mentioned as having accumulated within a week was sufficient
to disprove it. He declared the thawing agreement was being carried out.
The Banco do Brazil, this correspondent learns, recently decided to
grant coverage on bills for essentials, provided they were not included in
the thawing agreement.
While the palace ceremony was in progress Jefferson Caffery, President
Roosevelt's personal representative, stood on a balcony of the American
Embassy watching the crowds. A little later he issued the following formal
statement:
in this land.
"As the representative of the President of the United States
I am, of course, deeply interested in Cuba's welfare, and therefore deeply
interested in any satisfactory solution of her political problems. I have
that
confidence in the patriotism of the republic's leaders and confidence
and that their
their principal interest will be the service of their compatriots
on
people
the
of
lot
the
efforts will be directed especially toward bettering
the plantations, in the factories and in their homes."
Grain-Control Plan Paying in Argentina—Board Loses
Money on Corn but Makes $167,434 Net Profit on
Foreign Exchange.
In a Buenos Aires cablegram Jan. 24 to the New York
"Times" it was stated that the Grain Control Board reports
a profit of 503,260 pesos, equal to $167,434, for six weeks'
operations in corn under the Government's national recovery
project of Nov. 29. The advices to the "Times" continued:
President Roosevelt held a conference at the White House
on Jan. 22 with Ministers and A.mbassadors of 17 South
American Nations, informing them that he planned to
recognize the Mendieta. Government. In granting formal
recognition the following day it was also indicated that Jefferson Caffery would be named as Ambassador to Havana.
Secretary of State Hull announced that of the 16 United
States war vessels which have been in Cuban waters 10
have already been withdrawn and the rest will return to
this country as conditions improve. Secretary Hull issued
the following statement Jan. 23:
recognition of Cuba comes at this
I am immensely gratified that the friend
and well-wisher of the Cuban
Decrees of that date depreciated peso exchange 20%,fixed export prices
for grains, established the Grain Control Board and authorized it to buy
all grain offered at the Government's fixed price and to sell its holdings at
international market prices. The exchange arising from these operations
was to be auctioned to importers. The Government fixed the price for
corn 20% above the previous day's market price, making it equivalent
approximately to 37 cents a bushel at the new depreciated rate for the peso.
The Grain Control Board bought and sold 143,498 metric tons, or
5,649,516 bushels, of corn up to Jan. 13. It sold its holdings for 101.820
pesos, or $33.875, less than the purchase price, but made a profit of 605,080
Pesos, or $201,310, in selling drafts to importers, resulting in a net profit
of 503,260 pesos, or $167,434, which is being applied to financing the
board's wheat operations.
Corn stocks were nearly exhausted when the Board began operations
In the first week of December. It bought all offerings, but did not begin
selling for two weeks in order to avoid excess offerings in competition with
exporting firms.
time. I say this bechuse I am a loyal
now is a sort of culmination
people and because Cuban recognition coming
conference. The almost
of the proceedings of the recent Montevideo
the people of Cuba
universal support (of the Mendieta Government) by
government and the continuPoints strongly to the maintenance of a stable
wish of the friends
devout
the
ance of law and order in that country. It is
in the island will conof the Cuban people that all forces of law and order
government which has
tinue to unify themselves in support of the new
just been installed."
We quote in part from a Havana dispatch of Jan. 23 to the
"Times" regarding the formal notice of United States
recognition:
United States this afterRecognition of the Mendieta Government by the
people, who feel they are
noon was welcomed with jubilance by the Cuban
stability.
now back on the road to political and economic
in Cuba of PresiAt 4 p. m. Jefferson Caffery, personal representative
Dr.Jose de la Torriente,
dent Roosevelt. delivered to the Secretary of State,
the following note:
that I have been instructed
"I have the honor to inform Your Excellency under authorization of the
by the Secretary of State of my Government,
.
of
to the Government
extend
to
President of the United States of America, and cordial recognition.'
formal
Cuba on behalf of the United Statesbattleship
in
now
Havana
Wyoming,
States
The guns of the United
of 21-Suns, which was
Harbor, then began firing a Presidential salutegunboat
Cuba then fired
immediately answered by Cabana Fortress. Thein
turn was answered by
which
a salute to the flag of Admiral Freeman,
Wyoming.
flagship
the
news of recognition, which
The city had waited expectantly all day for
to any Cuban Government. As
they look on as of paramount importance
sirens shrieked, people
and
whistles
city
the
over
thundered
the guns
and gathered in happy, gesticuiat,emerged from their homes into the streets
and police fired their sidearms
Soldiers
event.
the
discuss
to
groups
ing
celebration.
into the air and joined in the impromptu
Koki Hirota, Japanese Foreign Minister, Declares
Japan Wants Friendship of United States—Tells
Imperial Diet There Are No Issues "Intrinsically
Difficult of Solution" Between Nations—Deplores
Soviet Criticism and Denies Japan Has Fortified
Her Frontiers,
The Japanese Government feels only friendlinesss for tho
United States and a desire for co-operation with this Nation,
Minister of Foreign Affairs Koki FErota said on Jan. 23 in
an address before the Japanese Imperial Diet. "Between
Japan and the United States there exists no question that is
intrinsically difficult of solution," he declared. Japan, he
added, "fervently desires American friendship." He also
discussed Japanese relations with the Soviet Union and the
British Empire, and remarked that "it is most surprising
and regrettable" that Russia should direct "unwarranted
criticisms against Japan." Associated Press advices of
Jan. 23 from Tokio gave the following additional extracts
from the Foreign Minister's speech:
He told the legislators that the Japanese Government believed "proper
adjustment of the tripartite relationship between Japan, Manchukuo and
the Soviet Union was of paramount importance for the tranquility of
Eastern Asia."
Volume 138
Financial Chronicle
Mr. Hirota said realtions between Japan and "friendly powers in general"
had become closer and more cordial following upon the empire's withdrawal from the League.
He described the Japanese Government as having a serious responsibility
for the maintenance of peace in Eastern Asia and as having made a firm
resolve "in that regard." He said the most important essential, however,
was "the stabilization of China herself."
He brought the Soviet Union into his speech after his discussion of ChinoJapanese relations. He said that even after the creation of Manchukuo,
there had been a "thorough mutual understanding" between Japan and
Russia. On the basis of this understanding, he said,"no difficult question
was encountered." "Now, however," he added, "the attitude of the
Soviet Union toward Japan seems to have undergone a change of some
sort." This change he described as "most surprising and regrettable."
The Foreign Minister flatly declared:
"Japan certainly is setting up no new military establishments along the
Manchukuo Soviet fontiers, Moscow propaganda notwithstanding."
"I am sure that before long the Soviet Union must come to appreciate
fully the true intentions of Japan," he continued. Then he turned to the
question of relations with the United States and said:
"I am confident that the United States will not fail to appraise correctly
Japan's position in Eastern Asia."
"Temporary estrangement" of the peoples of Japan and the United
States was brought about, he asserted, by the outbreak of "the Manchurian
incident." But, he continued, he believed the United States would come
to realize "Japan's role as the stabilizing force in Eastern Asia."
When that realization came, he said, any "emotional tension" yet lingergoring between the two peoples would disappear.
"I sincerely hope," declared Mr. Hirota, "that the two great nations
across the Pacific will continue to join forces in cultivating their historical
friendship and good understanding so as to keep the ocean forever true to
Its name."
As for Great Britain, Mr. Hirota said, "Japan's traditional amity with
the British Empire remains unshaken, even to these times."
Uruguay Abandons Exchange Control—Three-Year
Trial Proves Plan a Failure—Only Export Drafts
Restricted Hereafter.
The following cablegram from Montevideo,Jan. 24,is from
the New York "Times:"
The Bank of the Republic has announced abolition of exchange control
effective Feb. 1, except for the sale of export drafts, which will remain
subject to government control. Exchange bootlegging is abolished by
permission to the banks and exchange shops to buy and sell drafts, checks
and currency of any country at prices regulated by supply and demand
instead of those fixed by the government.
Uruguay thus follows Argentina in admitting inability to control exchange operations. Exchange bootlegging had flourished on both sides of
the River Plate ever since the governments established restrictions and
attempted to fix official rates three years ago. The governments were
unable to get control of a large volume of incoming funds and therefore
were unable to supply the demand for outgoing remittances.
Permitting the peso to seek its natural level in terms of other currencies
has raised commodity prices in Argentina and is expected to do likewise
here. It is also serving as a natural restriction on imports by increasing
the prices of imported articles.
Senate Inquiry into Stock Market Trading—Conclusion
of Investigation into Records of Guardian Detroit
Union Group of Detroit—Testimony of Edsel Ford
as to Directors' Meetings—Ford Motor Co. Reported
to Have Had $32,500,000 on Deposit with Group
When Michigan Bank Holiday Was Declared.
The inquiry before the Senate Banking and Currency
Committee into the collapse of the Guardian Detroit Union
Group of Detroit was concluded on Jan. 23. The inquiry
into the Michigan closed bank situation, conducted in
furtherance of the investigation into stock market trading,
was brought under way on Dec. 18, and references thereto
appeared in our issues of Dec. 23, page 4454; Dec. 30,
page 4611, and Jan. 13, page 247. With the termination
of the hearing into the affairs of the Guardian group the
Committee on Jan. 24 began'an inquiry into the affairs of
the Detroit Bankers Co., the other large Michigan holding
company. As to the hearing on Jan. 23, Associated Press
advices from Washington said:
Herbert R. Wilkin, former executive vice-president of the Guardian
groups, testified to-day. Mr. Pecora asked him about a credit of $600.000
extended by the Guardian National Bank of Commerce to the Union
Industrial and Savings Dank of Flint to enable the latter unit to reduce
bills payable. Mr. Wilkin testified that arrangements for the credit were
made by telephone, but that the deal transaction was completed.
"The certificates of deposit never was used, because they (the Guardian
Bank) didn't come through with their end of the transaction," the banker
testified.
Evidence was presented to show the certificate of deposit was withdrawn
on Jan. 2 1932, three days after the date of the issuance of the certificate,
and that the annual statement to the stockholders showed bills payable
reduced from $2,100,000 to $1,500,000.
On Jan. 11 Edsel Ford, President of the Ford Motor Co.,
testified that the Ford Motor Co. had 832,500,000 on
deposit in the Guardian Bank group of Detroit when the
banks were closed by the Michigan bank holiday.
In part, a Washington dispatch Jan. 11 to the New York
"Times," said:
Edsel B. Ford, president of the Ford Motor Company, testifying to-day
before the Senate Banking and Currency Committee, admitted that as a
director of the Guardian Detroit Union group, parent unit of the Michigan
banking chain, he had scant knowledge of the situation which ended in the
banking collapse.
Incidentally, he disclosed that when the crash came the Ford Motor
Company had $32,500,000 on deposit in various units of the chain while
personally he had made loans of cash and securities to the group aggregating
$6,000,000.
599
The Committee was frankly surprised at Mr. Ford's failure to recollect
Incidents of the two years preceding the closing of the banks in February,
last year.
The witness could not recall "specifically" what happened at any board
meeting he bad attended. He knew the situation was bad, but that was
about all.
Examined on Bond Purchase.
Along another line Ferdinand Pecora, counsel for the Committee, inquired into a purchase by the Ford Company in Dec. 1932 of United States
securities of a par value of $15,000,000, of which S7,500,000 was bought
from the Guaranty Trust Company of New York and about the same
amount from the Chemical National Bank and Trust Company of New
York.
"We wanted to show less cash on hand in our annual statement, which
would be published in Massachusetts," Mr. Ford said. "We wanted to
show more diversification of our intangible assets. It was just a question
of not showing as much cash on hand, because they usually make a big
statement in the newspapers about it, and we did not care about that.
There was no tax saving involved under the laws of Michigan. We have an
opinion from the Attorney General of Michigan that no tax was involved."
Mr.Pecora asked Louis Colombo of Detroit, Mr. Ford's personal counsel,
to submit the rulings substantiating this statement, and Mr. Colombo said
he would do so to-morrow.
While he had no recollection that the group banks solicited and secured
"temporary deposits" to bolster up their deposit statements, Mr. Ford
said this probably was done. In fact, be thought that such requests probably
had been made to the Ford Company.
Served on Advisory Committee.
Mr. Ford, after identifying himself as president of the Ford Motor
Company, said he was a member of the board of directors of the Guardian
Detroit Union Group from its inception and of the Guardian National
Bank and the Union Guardian Trust Company of Detroit, two of the principal units in the banking chain.
"According to the annual report of the Guardian Detroit Union Group
for 1930 you were also a member of the advisory committee of the group.
Do you recall that " Mr. Pecora asked.
"I think so," Mr. Ford replied.
The witness "vaguely" recalled that he must have been a member of the
advisory committee in 1932.
"Did the advisory committee frequently advise with the officers of the
group "Mr. Pecora asked.
"I could not say; I cannot remember," was the reply.
Nor did Mr. Ford recall whether he was a regular attendant at meetings
of the committee or the board. He could not recall "specifically" any
meetings with the officers of the group.
"Well." asked Mr. Pecora,"do you recall generally any such conferences
that you had, as a member of the advisory committee, with officers of
the bank "
"No,sir," was the reply.
$11,000,000 Deposits Paid Back.
Mr. Ford said the Ford Motor Company had substantial deposits in
some of the group's banks at the time of the collapse, mainly the Guardian
National Bank of Commerce and 'the Union Guardian Trust Company,
both of Detroit.
These deposits, as of Feb. 14 1933, the day the banks closed, totaled
$32,500,000. Subsequently, in talking to newspaper men, Mr. Ford said
that $11,000,000 of the deposits had been paid back to the Ford company
and that bank stocks were given as security for the remainder. The largest
single account in any of the units, he said. was $15,000,000 in the Guardian
National.
"Do you recall," Mr. Pecora asked, "at any time during the Years 1930,
1931 and 1932 your having participated in any conferences or discussions as a director of the group with respect to condition, financial and
otherwise, of the group and its various units "
"I cannot remember any specific instances, but naturally we were discussing the conditions as we went along," Mr. Ford answered.
Q.—Without reference to any specific discussion will you tell the Committee about how many discussions you participated in? A.—I cannot
recall.
Q.—Can you tell us approximately? A.—I have no idea. Probably few.
Q.—Well, do you recall the general course of the discussions that were
had at the few conferences that you attended at which the condition of
the group and its units were discussed? A.—No,sir, I do not.
Q.—Why are you unable to tell us that, Mr. Ford? A.—Because I do
not remember.
Discussed Tense Situation.
Mr. Ford later recalled that "there were discussions of the financial
conditions of the group" at some conferences be attended.
"What was the general tenor of those discussions?"
"That the banking situation was very tense and was getting worse,"
the witness said, "that conditions were arising each day that needed careful
handling and watching, and that conditions in the country generally were
going from bad to worse.
"The assets and securities that the banks held were naturally depreciating.
It was a question of coping with the situation as It changed from day to
day. The group responsibility was to scrutinize each one of the unit banks
and counsel with their officers, and try to carry on a course of operations
In the most successful manner possible."
Asked by Senator Couzens if he or any of his associates had gone to the
relief of any of the banks in the chain, Mr. Ford replied that he personally
had done so. Later in the examination he told of lending to the Guardian
Union Trust Company $1,000.000 in cash and $5,000,000 in municipal
bonds to aid in weathering the storm. The loan, he added, has not been
repaid.
Reports Submitted to President Roosevelt by Secretary
of Commerce Roper on Regulation of Stock Markets and Telephone and Telegraph Companies.
Reports to provide for Federal regulation of stock exchanges and the vast network of communications were presented to President Roosevelt on Jan. 23 by a special Administration committee. Yesterday (Jan. 26) the reports
were sent by the President to the interested Congressional
Committees without recommendation.
Daniel C. Roper, Secretary of Commerce, carried the reports to the White House.
Associated Press advices from Washington, Jan. 23, said:
Congressional leaders have freely Predicted a determined effort at this
session for regulation of stock exchanges. The report on this subject:will
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Financial Chronicle
be sent to the Senate Banking Committee, which has conducted an extensive
investigation of the stock market.
10 Administration favor for some form of monopolies in the telephone, telegraph and radio fields under strict government regulation has been indicated.
This report will go to the Inter-State Commerce Committees of the Senate
and House, which are considering this complicated subject.
"Our reports took up the various problems involved in regulation of the
stock markets and communications," said Secretary Roper. "They make
no specific recommendations-for legislation, and I have suggested that they
be sent along to Congress without recommendation. It is up to Congress
to decide and to construct the bills."
Various methods by which the Government could extend some form of
control over a state organization such as the New York Stock Exchange
are set forth.
While the reports were not made public, it is understood that the principal method of Federal regulation would be through taxation, the postoffice laws and the authority under the Inter-State Commerce provision of
the Constitution.
The report on communications sets forth the possibilities of:
1. Continuation of existing conditions.
2. Monopolies under government regulation.
3. Government ownership.
There is reason to believe that the second proposition, which would unify
the telephone lines into one system, the telegraph into another and radio
into another under government supervision was favored by the special
committee.
John Dickinson, Assistant Secretary of the Commerce Department,
headed the special committee which compiled the report.
New York Stock Exchange Reported as Acting to Make
Eligible for Listing Foreign Shares Payable in
Currency on Non-Gold Basis—Viewed as Making
Tentatively Inoperative Ruling in Effect Since
1927—Foreign Loans to Benefit —Way Opened for
Trading in English, French and Other Foreign
Securities.
It became known on Jan. 23 that the New York Stock Exchange has suspended a rule of the Committee on Stock List
barring the listing of foreign shares whose nominal value
or income return is payable in currency not on a gold basis.
Stating that this action has reopened the door for the listing
of English, French and other foreign stock issues, the New
York "Times" of Jan. 23 said:
In 1927, on the recommendation of a special committee, the Exchange
adopted rules that permitted the listing of foreign shares for the first
time. One rule stated that the Committee on Stock List would not recommend the listing of shares not payable in the currency of a nation on the
gold basis. Under these special rules, more than 24 issues were listed from
1927 until last year in the form of certificates of deposit for the foreign
shares.
Although no formal announcement has been made by the Exchange, the
adoption of a new policy is apparent in the recent listing of such shares.
Last Oct. 25, for example, the Exchange listed 1,744,695 American shares
of the five shilling par value stock of Roan Antelope Copper alines, Ltd.,
an English company, despite the suspension of the gold standard by
England.
1927 Ruling Regarded Temporarily Inoperative.
The Committee, It is now believed, will judge each foreign issue on its
merits, and will approve some listings even when the country from which
the shares originate has suspended the gold standard. As yet, the gold
clause in the listing rules has not been scrapped, but it is at least temporarily inoperative.
Probable Basle of Ruling.
Suspension of the Exchange's gold clause was apparently caused by the
abandonment of the gold standard by nearly all foreign countries. Since
the retention of the clause would have barred the listing for an indefinite
period of English, Canadian and other foreign shares, the Exchange apparently decided to waive the rule and allow individual investors to determine
whether foreign issues approved for listing were payable in sound currencies.
The Exchange adopted the rule on the recommendation of J. M. B.
Hoxsey, Executive Assistant of the Committee on Stock List; J. E. Meeker,
Economist of the Exchange, and Roland L. Redmond, its counsel. This
special committee of three made the following statement at the time:
"Apart from the normal risk of declining intrinsic value, the American
holder of securities written in legal tender currencies must also bear the
additional risk of exchange rate fluctuation with gold dollars beyond the
relatively narrow confines of the ordinary 'gold points.' Such exchange
fluctuations are an absolutely basic factor in establishing the value of
foreign internal securities to Americans, and in extreme cases may by themselves reduce this value to complete worthlessness.
"The Exchange accordingly should list only foreign securities payable
in a currency possessing a definite and official gold value, or securities of a
country with a gold currency. This policy, however, should be subject to
such exceptions as changes in currency systems and conditions now unforeseen may justify in the future. In order that even an existing gold currency may sufficiently indicate its stability, it may prove desirable not to
list foreign currency securities here until gold stabilization has been ID
effect for an adequate period of time—say, two years."
On the recommendation of this special committee, the Exchange's requirements for listing foreign shares were that until further action by the
Committee on Stock List, the latter would not "recommend for listing
corporate securities the nominal value of which is expressed in terms of,
or the income from which is payable to security holders in, a currency
which is not upon a gold basis."
How many foreign companies are likely to seize the new opportunity and
apply for listing their shares on the Exchange has not been determined.
Demand has been large in this market for certain foreign issues in recent
months. If this country stabilized the dollar or returned to the gold standard there would probably be a rush to list foreign issues.
The Exchange's ruling was apparently influenced partly by the abandonment of the gold standard by the United States. Last July the Exchange announced that in view of Public Resolution 10, approved by Congress, which suspended the gold clause in all public and private debts, the
Exchange would not list bonds or other obligations incurred after June 5
1933, if they contained the designation "gold" or were payable in gold.
Jan. 27 1934
The Committee's requirements for the listing of foreign
shares, adopted in 1927, were indicated in these columns
Oct. 8 1927, page 1911.
Second-Day Delivery Plan of New York Stock Exchange
Reported Successful—Deliveries Under New System Found 230% Better-5,500,000 Shares Handled
Without Aid of Additional Workers or Overtime.
The second-day delivery plan, which was adopted by the
New York Stock Exchange on Sept. 8 1933, in the hope of
eliminating overtime work and the hiring of additional
workers in members' offices when transactions are large
on the Exchange, has proved itself efficient, it is reported
by Laurence G. Payson, President of the Stock Clearing
Corp., the Exchange announced Jan. 25. Transactions of
Friday, Jan. 19, and Saturday, Jan. 20, totaling 5,500,000
shares, were handled on Tuesday,Jan.23, without any delay.
Under the second-day delivery plan securities are delivered
two days following the transaction instead of the following
day under the old plan. The Exchange's announcement of
Jan. 25 follows:
At a meeting of the Governing Committee of the New York Stock
Exchange on Jan. 24, Laurence G.Payson, President of the Stock Clearing
Corp., reported that the transactions on Friday and Saturday, Jan. 19 and
20, settled through the Stock Clearing Corp. Day Branch on Tuesday,
the 23d,gave the Street the best volume-test of operation under the secondday delivery system since the inauguration of that program by the Governing
Committee on Sept. 8 1933.
Mr. Payson further reported that the volume of stocks involved totaled
approximately 5,500,000 shares for the combined week-end. All sheets
reached Stock Clearing Corp. Night Clearing Branch by 1:30 p. m. on
Jan. 23, and without the employment of any additional personnel, the
clearance was completed by 8:30 p. m. The resulting settlement involving
over 13,000 deliveries of cleared stocks, plus non-cleared stocks and bonds
and non-member deliveries with 15 banks, was effected Jan. 24 at 5 P• m.
Because of the new system the Street was able to deliver items through
the Central Delivery Department so much earlier in the day that offices
were able to dismiss their personnel within the normal working hour period.
The number of deliveries made before 11 a. m. under the new system
was 230% better than made on a similar volume day under the old next-day
delivery program, while the number of deliveries made during the last
delivery hour of the day decreased so materially as to allow every certificate to be out of our Central Delivery Department by 2:23 p. m. A
comparative time under the old schedule would have been 2:50 p. m.
Equally important, the percentage of fail-to-deliver items dropped, in
the case of bonds, from 37% under the old program to 15% under the
new program,and in the case of cleared stocks dropped from 11 to 4%.
Reports reaching Stock Clearing Corp. from the Street have failed to
show any complaint against the new second-day delivery program, and
on the other hand have shown many gratifying compliments to the Exchange
for having initiated this program.
Election of Officers of New York Curb Exchange to Be
Held Feb. 13—Nominees for Board of Governors
and Nominating Committee.
In preparation for the election of officers on Feb. 13 1934,
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 Clarence
L. Eckstein, Bernard W. Green, E. Burd Grubb, Fred C.
Moffatt, Alfred I. Preston Jr., Herman N. Rodewald, Benjamin H. Rosaler, E. B. Schryver, Edward J. Shean,
Walter H.Sykes Jr., Roy G. Vilas and Morton Wohlgemuth
it was announced Jan. 23 by the Exchange. Clarence A.
Bettman was nominated for member of the Board of Governors for a two-yaar term.
Francis Dickson and Washington Content were nominated
for trustees of the Gratuity Fund for a three-year term and
condidates for the Nominating Committee for one year are
Elliott H. Lippman, Frank J. McCabe, William A. Pidgeon,
Charles J. Smith and J. Edward Walsh.
Death of Louis M. Teichman, Former Treasurer of New
York Curb Exchange—Was 69 Years Old.
Louis M. Teiehman, former Treasurer of the New York
Curb Exchange, died in Paris, France, on Jan. 21 following
a long illness, according to word received in New York.
He was 59 years old. Mr. Teichman retired from business
in 1925 and went to Paris to resume an interrupted musical
career. He entered the brokerage business at an early age.
He was a charter member of the New York Curb Exchange.
He was elected a member of the Board of Governors Feb. 9
1914, and was elected Treasurer June 15 1921 to take effect
June 27 1921. On Oct. 28 1925 he resigned as a member of
the Board of Governors. His regular membership was
transferred Nov. 11 1925.
Jerome Lewine Re-Elected President of Commodity
Exchange, Inc.—Others Elected.
Jerome Lewine, first president of Commodity Exchange,
Inc., which was organized on May 1 1933 as a consolidation
of the silk, rubber, hide and metal exchanges, was re-elected
to serve for the coming year at a meeting of the Board of
Volume 138
Financial Chronicle
Governors held Jan. 24. The following officers were also reelected for the ensuing year:
J. Chester Cuppla, Paolino Gerli, Edward L. McKendrew, Ivan Reitler
and Charles Slaughter, Vice-Presidents; Floyd Y. Keeler, Treasurer; Walter
Dutton, Secretary; Alfred H. Korndorfer, First Assistant Secretary; Henry
J. Fink and James J. Murphy, Assistant Secretaries.
In our columns of Jan. 20, page 416, we referred to the
election of Governors of the Exchange and the naming of
the Nominating Committee.
Two Sentenced to Five Years Imprisonment and to Pay
$18,000 Fine for Stock Pool Operations—Convictions in Action Against Former President of
Manhattan Electrical Supply Co.
Federal Judge John M. Woolsey of the United States
District Court in New York City on Jan. 19 sentenced
Richard M. Brown, former President of the Manhattan
Electrical Supply Co., and Charles H. McCarthy, stock
market operator, to serve five years each in the Federal
penitentiary and to pay a fine of $18,000 each,following their
conviction of using the mails to defraud and of conspiracy.
The two men, it was charged, had participated in a stock
market pool which resulted in losses of several millions of
dollars to credulous investors. The Judge, in pronouncing
sentence, said the pool was "one of the most poisonous things
affecting the public." The New York "Sun" of Jan. 19
added the following information:
Judge Woolsey imposed a punishment close to the maximum on both
Brown and McCarthy. They were convicted on eight counts of mail fraud
and one of conspiracy. Each count of mail fraud carries a maximum of five
years'imprisonment and a $1,000 fine, while the count of conspiracy carries
two years' imprisonment and a $10,000 fine. The Judge assessed the full
fines on each count, but permitted the prison sentences to run concurrently.
The trial began on Nov. 22 and the 11-man jury returned its verdict
after only an hour and a half's deliberation last night.
The trial was the first in this district in which the mail-fraud statute was
invoked against stock pool operators.
Overruling a demurrer by defense counsel, Judge Woolsey handed down
an opinion declaring all stock "touting" fraudulent and branding as illegal
any attempt to raise stock prices artificially.
Referring to stock market operators Judge Woolsey said:
"The slightest step over the line takes them into a zone of condemnation
by the courts and the doctrine applicable to each member of the pool is
the new maxim 'caveat vendor'."
Judge Woolsey denied the motions of the defense counsel, Charles Goldman and Raphael Koenig, to set aside the verdict.
The prosecution was conducted by Assistant United States Attorneys
Jacob:J. Rosenblum and Joseph E. Finnegan.
A previous reference in the matter appeared in our issue
of Dec. 2, page 3920.
Postponement of Hearing of Department of Agriculture's Complaint Against Two Members of Chicago
Board of Trade.
On Jan. 22 Associated Press advices from Cleveland said:
A hearing scheduled for to-day on charges that Adrian Ettinger and
Ewing W. Brand, former partners in the firm of Ettinger & Brand,investment brokers, violated the grain futures act, was postponed until Feb. 3.
The charges were made by Secretary of Agriculture Wallace who to-day
named D. P. Willis, of Washington, special master, and Leo F. Turney,
of Washington, special prosecutor, to hear the charges.
•
The Department's complaint was referred to in our Jan.20
issue, page 416.
Internal Revenue Bureau Acts to Check Evasion of
Income Taxes Through Stock Sales Between Husband and Wife—New Regulations Require Brokers
to Submit Data—Banks Are Included in Call for
All Transactions Totaling $25,000 or More in Year.
For the purpose of detecting possible tax evasions through
wash sales or sales between husbands and wives to establish
a loss, new regulations were issued on Jan. 20 by Guy T.
Helvering, Internal Revenue Commissioner, as a part of
the program of the Government to prevent losses in revenue.
From a Washington dispatch Jan. 20 to the New York
"Times' we quote further as follows:
The Revenue Act of 1932 provided that persons doing business as brokers
must render a return showing their customers' transactions, when required
by the Commissioner.
The names and addresses of customers to whom payments were made
or for whom business was transacted. and other information may be rerequired by the Commissioner.
In accordance with that authority Mr. Helvering issued regulations to
the effect that every person or organization acting as broker or other
agent in stock, bond or commodity transactions, including banks, must
make an annual return of information for each customer, depositor, or
account for whom or for which the aggregate of either purchases or sales
was $25,000 or more during the calendar year 1933 and each subsequent
calendar year.
A long set of regulations also was made public prescribing the method
of computing income tax for the calendar year 1932 in the case of an individual having income from a partnership with a fiscal year ending during
1932. This, it was said, would affect relatively few taxpayers.
Text of Regulations.
The text of the regulations governing brokers follows:
RETURNS OF INFORMATION REQUIRED TO BE FILED BY
BROKERS AND OTHER AGENTS.
"Section 149 of the Revenue Act of 1932 provides that every person
doing business as a broker shall, when required by the Commissioner,
601
render a correct return duly verified under oath, under such rules and
regulationas as the Commissioner, with the approval of the Secretary,
may prescribe, showing the names of customers for whom such person
has transacted any business, with such details as to the profits, losses,
or other information which the Commissioner may require, as to each of
such customers, as will enable the Commissioner to determine whether
all income tax due on profits or gains of such customers has been paid.
"Article 841 of Regulations 77 provides that, when directed by the
Commissioner, either specifically or by general regulations, every person
doing business as a broker shall render a return on Form 1100. showing the
names and addresses of customers to whom payments were made or for
whom business was transacted during the calendar year or other specified
period next preceding, and giving the other information called for by the
form.
"In accordance with the foregoing every person or organization acting
as broker or other agent in stock, bonds or commodity transactions (including banks which handle orders forrdepositorsfor custodian accounts)
is hereby directed to make an annual returnrof information on Form 1100
for each customer, deposit or account for whom or which the aggregate
of either purchases or sales amounted to $25,000 or more during the calendar
year 1933 and each subsequent calendar year, unless otherwise specifically
directed.
Calls for Full Details.
"The name and address of the customer and the title of the account:
the total of the purchases and the total of the sales made for such customer; name and address of the broker or agent,and the names and addresses
of the guarantors of the account and others with power to make withdrawals
of cash, securities or commodities from the account. Form 1100 is printed
on white paper and a duplicate thereof is printed on pink Paper. In
each case where the account is guaranteed or others have power to make
withdrawals of cash, securities or commodities from the account, a duplicate of the form as prepared on white paper will be made on the pink form
for each name and address, other than the customer, required to be shown
on Form 1100.
"Form 1100A is provided for use as a letter of transmittal and affidavit
to accompany Form 1100. The Form 1100 for each year accompanied
by Form 1100A, properly filled out and executed, should be forwarded
to the Commissioner of Internal Revenue, Sorting Section, Washington,
D. C., not later than the 15th day of February following the close of the
calendar year.
"The forms (1100 and 1100A)for the calendar year 1933 and subsequent
calendar years will be distributed through the Collectors of Internal Revenue
for the various collection districts.
"Returns made by individuals must be sworn to by the individuals
or a duly authorized agent. Returns made by corporations, partnerships
and other organizations must be sworn to by an officer or member of the
organization.
"All existing regulations and instructions which are inconsistent with
the foregoing are hereby revoked."
An item bearing on the proposals of the then Acting
Secretary of the Treasury Morgenthau to block income
tax evasions appeared in our issue of Dec. 16 page 4284.
Internal Revenue Receipts Up $471,108,054 in First
Half of 1934 Fiscal Year—Total Payments Were
$1,215,545,550—Liquor Taxes Amounted to $98,414,504 in 6-Month Period—Individual Income
Tax Payments Increase, but Corporation Returns
Decline.
Total internal revenue receipts for the first six months of
the fiscal year ending June 30 1934 were $1,215,545,550, an
increase of $471,108,054 as compared with the same period
of the 1933 fiscal year, the Bureau of Internal Revenue announced on Jan. 23. Income taxes constituted.$316,834,713
of the total, a reduction of $26,332,746. Corporation taxes
totaled $164,242,893, a drop of $49,043,430, and individual
taxes were $152,591,819, an increase of $22,710,684. Liquor
taxes, including distilled spirits, beer and wine, for the,six
months ended Dec. 31 1933 amounted to $98,414,504 against
$3,597,348 for the same period of 1932. The 3.2% beer and
wine tax was effective for the entire period, while the distilled spirits tax on beverage liquors was effective for about
three weeks of December. We quote in part from a Washington dispatch of Jan. 23 to the New York "Times," giving further details of the report:
The distilled spirits production tax was $8,651,257, that on rectification of spirits, $1,257,597, and on still or sparkling wines and cordials,
$1,039,475.
The fermented malt liquor or beer tax for December was $12,867,068,
exceeding November by about $4,800,000. This tax was increased by the
legalization of beer of greater than 3.2% alcoholic content.
For the six months the production tax on distilled spirits amounted to
$14,547,282, as compared with $3,130,740 the same period of the year
before, the latter representing the production of medicinal spirits.
Other principal liquor taxes for the six months, virtually net gains over
the year before, were as follows:
Rectification tax
$1,421,911
Still or sparkling wine and cordials
1,269,047
Rectifiers, retail and wholesale dealers and manufacturers
3,030,939
Case stamps for distilled spirits bottled in bond
52,427
Fermented vinous or fruit Juice liquors under the Act of March 22 1933_ _
27,548
Fermented malt liquors
73,454,216
Brewers, retail and wholesale dealers in malt liquors
4,537.509
Tobacco taxes amounted to $199,323,416 for the six months, a gain of
$6,569,861. Cigarette taxes have been showing an upward trend during
the past few months, their total for the six months being $162,165,508, an
increase of $7,095,115.
Snuff taxes of $3,240,475 were slightly higher, while all others decreased. The manufactured tobacco tax was $27,089,984, a decrease of
$531,737, and cigars, $6,227,119, a decline of $56,886.
The stamp taxes amounted to $39,532,430, the manufacturers excise tax
to $216,387,924 and miscellaneous taxes $48,034,179.
The capital stock tax under the act of June 16 1933, amounted to $79,339,591, the dividends tax $27,981,865, and the excess profits tax $65,746,
all net gains. The estate tax totaled $48,822,508, a gain of $34,024,091,
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Financial Chronicle
and the gift tax $245,421, as compared with $3,928 in the same period of
the preceding year, when it was in operation only a brief time.
The Bureau reported that the production of distilled spirits on which
$1.10 a gallon tax was paid amounted to 6,245,101 gallons in December.
The rectified spirits tax of 30 cents a gallon was paid on 4,166,379 gallons.
The $5-a-barrel malt liquor tax was paid on 1,059,079 barrels, and the $6
tax on 1,262,779 barrels. Taxes were paid on 197 barrels of fermented
fruit juice.
Cigar production, as shown by the payment of tax, was 276,690,240 cigars,
an increase of 22,000,000 as compared with the same month the year before.
The cigarette output was 7,799,623,723, an increase of 480,000,000, and that
of manufactured tobacco 19,292,241 pounds, a loss of 1,600,000 pounds.
Isidor W. Kresel and Henry W. Pollock Eliminated as
Defendants in Suit Against Officers and Directors
of Bank of United States—Former to Pay $5,000
and Latter $14,059.
Isidor J. Kresel, Counsel and director of the Bank of
United States, was eliminated Jan. 17 as a defendant in the
$60,000,000 suit brought by Joseph A. Broderick, New York
State Banking Superintendent, against the officers and
directors of the Bank of United States and in the $50,000,000
action against the Ban kus Corp., an affiliate. He was
released upon agreement to pay $5,000. Two days later
(Jan. 19) Henry W. Pollock, who was Vice-President and
Counsel of the defunct institution, was eliminated as a
defendant through a court order permitting a settlement of
$4,700. Mr. Pollock also agreed to pay an assessment of
$9,359 on his bank stock. The New York "Times" of
Jan. 17 described the settlement with Mr. Kresel as follows:
Fred A. Piderit, liquidating officer of the Bank of United States, obtained
permission from Supreme Court Justice Lydon to settle the claims against
Mr. Kresel on the ground that he was insolvent, and that the possibility
of obtaining a reversal of his conviction so that he could resume the practice
of law was problematical. Mr. Kresel agreed to Pay $1,000 now.$500 each
on Dec. 15 1934, and Dec. 15 1935, and $3,000 on Dec. 15 1936.
Mr. Kresel owes the bank $20,200 on the assessment on his stock and
owes six other creditors more than $50,000. it was stated.
The trial of the suit against other directors of the bank continued.
Documents were put in evidence to show the directors approved Illegal
loans. The trial will go on to-day.
The settlement with Mr. Pollock was noted as follows
in the "Times" of Jan. 20:
As a condition of the settlement Mrs. Alma B. Pollock, wife of the
former bank official, is to discontinue an action against the bank for $347,500
damages on a claim assigned by her husband that the bank broke a contract
with him that had several years to run. Fred W. Piderit, liquidator of the
bank, in applying for approval of the settlement, said that Mrs. Pollock's
suit "raises a difficult question of law which cannot be regarded as clearly
settled in the bank's favor, although it is believed the action could be resisted successfully."
Carl J. Austrian, Counsel for the Banking Department, offered evidence
that the bank's directors approved a loan of $3,000,999 without security
to the Bankus Corp. and the City Financial Corp., subsidiaries. Mr. Austrian showed also that the two subsidiaries borrowed $19,552,000 from
other financial institutions to acquire the stock of the Colonial Bank, which
was merged with the Bank of United States. The loans from other banks
were fully secured but that from the Bank of United States was unsecured.
Bank of United States Debtor Permitted to Settle on
10% Basis—Supreme Court Justice Owed $141,518.
Supreme Court Justice Aaron J. Levy of New York City,
who owed the defunct Bank of United States $141,518.72,
was permitted by the New York State Banking Department
to settle the indebtedness for approximately 10% of the
amount, according to a petitioning affidavit • submitted
Jan. 5 with a notice of motion in an appeal case in the
Appellate Division in Manhattan. The Brooklyn "Eagle"
of Jan. 5, after noting the terms of settlement, added in part:
Among the papers in the case, filed by Ida Horowitz. plantiff-appellant,
against the Bank of United States, in liquidation and other defendantsrespondents, is a copy of the order of settlement.
It was signed on April 21 1932. by Supreme Court Justice Alfred Frankenthaler and reads:
"Ordered that the Superintendent of Banks be and is hereby authorized
to compromise and settle the claim against Aaron J. Levy, amounting to
$141,518.72 for 10% of this amount in cash, less the market value as of the
date ofsettlement of 2,100 shares of Bendix Aviation Corp.stock, now held
as collateral, which shall become the property of the Bank of United
States."
Miss Horowitz, an attorney, estimates in the petitioning affidavit that
through the settlement Justice Levy effected a saving of more than $127.000.
On the date of settlement Bendix Aviation stock was selling at 7.A.
At this figure the value of the stock was sufficient to cover the 10% cash
payment and leave a margin of about $2,000.
The papers filed by MISS Horowitz to-day included a notation of motion
for an order granting her leave to appeal to the Appellate Division from a
determination of Appellate Term, Supreme Court, denying her motion
for leave to reargue her original action or to appeal to the higher court.
The original litigation was brought by Miss Horowitz to collect from the
Bank of United States in liquidation fees which she claims for legal services
in bringing to life a Judgment by which the bank profited substantially.
Her claim was denied in City Court and the Appellate Term of Supreme
Court affirmed the Judgment and order of the City Court.
Federal Inquiry by Department of Justice into Banks
in Detroit, Cleveland and Elsewhere—Disclosed at
Senate Inquiry into Stock Market Trading.
A Federal investigation into the operations of large banks
in
various parts of the country, both before and during the
Jan. 27 1934
depression, is under way said a dispatch Jan. 25 from Washington to the New York "Times" which also said in part:
This was disclosed before the Senate Banking and Currency Committee
to-day after Joseph V. Verhelle, who was Comptroller of the $800,000,000
Detroit Bankers Co.,said in answer to a question by Senator Couzens that
the Department of Justice was now delving into the records of that once
great financial structure, which controlled 60% of all the banking resource
of Detroit.
Mr. Verhelle said he was questioned yesterday by representatives of
Attorney General Cummings, and it was subsequently revealed that information on other banks was being sought. . . .
Inquiry Started in Cleveland.
Representatives of the Department of Justice confirmed Mr. Verhelle's
testimony as to the departmuat's activities, saying the Detroit inquiry was
only one phase of the situation. The investigation involves banks in other
large cities, of which it is understood Cleveland is one. Whether any bank
In New York was involved was an unanswered question.
New York Clearing House Banks File Replies in Government Suit to Compel Payment of Harriman
National Bank & Trust Co. Depositors—Deny
Liability and Contend Any Compact, if Made,
Would Have Been Illegal.
Attorneys for member banks of the New York Clearing
House and for the bankers being sued by the Federal Government to compel payment in full of depositors of the closed
Harriman National Bank and Trust Company filed their
replies on Jan. 16 with counsel for the Comptroller of the
Currency. The equity suit was filed in the New York
Supreme Court Dec. 27, as was noted in these columns
Dec. 30, page 4619. The texts of the answers were not made
public, but newspaper reports said that in general they
reiterated the contention of the banks that they were not
bound by an agreement, which the Government alleges was
made through the Clearing House Committee, to support
the Harriman Bank. The New York "Times" of Jan. 17
added the following points believed to have been raised by
the defendants:
In addition, the answers set up a plea under the statute of frauds on
the ground that the alleged agreement was not written. It was further
contended that the suit of the Government was premature, since the
liability of the stockholders and certain officials of the Harriman Bank
had not yet been determined.
Yesterday had been set as the date when answers or motions must be
submitted. The fact that answers were chosen was understood to have
been due to a determination on the part of the defendants not to delay
the proceedings.
Service was made upon the legal firm of Cook, Nathan St Lehman of
20 Pine Street, representing the plaintiffs. Frederick V. Goess, as receiver of the Harriman Bank, and Henry E. Cooper joined with the
Comptroller of the Currency, James F. T. O'Connor, in bringing the suit.
The Harriman Bank, closed with others during the holiday period In
March of last year, did not re-open subsequently. The complaint of the
Government alleged that the bank had previously been discovered by
Government Examiners to be in difficulties, but had been allowed to
remain open because of assurances from the Clearing House Committee
that the bank would not be permitted to fail.
In their answers, however, the banks and the individual defendants,
It was learned, denied that any agreement to support the bank was made,
or that either the Clearing House or the Clearing House Committee had
authority to bind the banks.
The answers also declared that it was beyond the legal power of the
banks themselves to enter into any agreement to use their assets to
make good the deficits of another bank.
Mutual Mistake Seen.
It was argued in addition that the Comptroller of the Currency had no
right to enter into such an arrangement.
As a further defense, the answers pleaded that even if the elleged
agreement had been made it would be unenforceable, not only because
the Clearing House, the Clearing House Committee and the banks themselves had no right to establish such an agreement, but also because the
agreement would be the result of a mutual mistake.
The "mistake" was declared to have bebn caused by the circumstance
that neither the Comptroller of the Currency, the banks, the Clearing
House nor the Clearing House Committee knew at the time of the oorre•
spondence on which the suit is based that false entries, since discovered,
had been made in the books of the Harriman Bank.
Although the complaint did not specify the amount required to pay
the depositors in full, it was estimated at the time of filing to be about
$9,375,000. This sum would supplement $7,100,000 borrowed from the
Reconstruction Finance Corporation and paid out to depositors as a 50%
dividend.
The institutions named as defendents included the members of the
Clearing House Association, while the bankers named as individuals con•
stituted the Clearing House Committee during the time covered in the
allegations of the Government.
Joseph W. Harriman Must Stand Trial on Charge of
Misapplying More Than $1,000,000—Judge Rules
Former Banker Is Mentally Fit.
Joseph W. Harriman, former Chairman of the Board of
the Harriman National Bank and Trust Company, must
stand trial on the indictment charging him with misapplication of more than $1,000,000 of the funds of the bank, it
was decided at a hearing Jan. 20 on the banker's mental
condition before Federal Judge Francis G. Caffey, who
overruled the contention of defense counsel that Mr. Harriman was unable, as a result of mental difficulties, to defend
himself properly against the charge. In his opinion, de-
Financial Chronicle
Volume 138
livered after testimony by psychiatrists and laymen, Judge
Caffey said that the had concluded "that the defendent is
in proper physical and mental condition to be put on trial."
He placed much weight on the testimony of lay witnesses
and said that in this case he had disregarded the bulk of
the expert testimony.
Deposits in Mutual Savings Banks in New York State
Dropped $15,000,000 During Final Quarter of 1933.
Figures released Jan. 20 by the Savings Banks Association
of New York State show that deposits in mutual savings
banks for the State declined $15,000,000 during the last
quarter of 1933. A slackening in the rate of decline was
apparent and became marked during December. In fact,
the last few days of December showed an increase in deposits
which has continued thus far in 1934. For the last quarter
the number of depositors increased by 29,000, continuing an
upward trend which first became noticeable in September.
"That the savings banks of New York State have fulfilled
the purpose for which they were originally established is
well shown by the payments to depositors during the past
year," said Mr. Henry R. Kinsey, President of the association, who added:
Principal amounts of $235,000,000 and dividends of nearly $168,000,000
went to relieve the temporary distress and real needs of savings banks
depositors in the State. The mutual savings banks entered the year 1934
with total deposits of $5,064,000,000. The number of depositors served by
the savings banks declined for the first three quarters of 1933, but the last
quarter showed an increase of nearly 29,000 to a total of 5,766,349. So
far as it has been possible to ascertain, there were many instances during
the year where savings accounts were the only assets which stood between
the depositor and actual want, and it is a source of gratification to the
trustees of savings banks that these funds have been available without
depreciation when depositors wanted them, in whole or in part. In addition to the usefulness of these deposits a fair rate of dividend has continued
to be paid to savings banks depositors.
Although it is early to arrive at any definite conclusions as to the effect
of deposit insurance, returns since the first of the year indicate that mutual
savings depositors did not generally share a feeling that their deposits in the
mutual savings banks required such insurance, and consequently the imposition of Federal deposit insurance made little difference. Scattered
returns apparently show some small amounts coming out of hoarding.
Doubtless there have been transfers of accounts from postal savings and
from other banks, both commercial and savings, but the volume of such
business does not indicate any extraordinary enthusiasm for or resentment
against deposit insurance as a matter of policy.
In New York City the gain in deposits had already started in appreciable
volume during December, and this gain has apparently been carried over
Into the new year. Gain in the number of depositors was apparent all
over the State during the last quarter, and this, too, appears to be continuing in the new year at about the same rate.
Number of Stockholders of 15 Repre sentative Banks
in New York Higher in 1933 than in 1932.
The total number of stockholders of a group of 15 representative New York City banks and trust companies increased 22,736, or 6%, during 1933, based upon figures
compiled by Hoit, Rose & Troster. The firm's compilation
further showed:
On Dec. 30 1933 there were 385,899 stockholders, compared with 363,163
Dec. 31 1932; 328,974, Dec. 31 1931: 301,932, Dec. 31 1930, and only
19,401 at the close of 1920. The increase since 1920 has been 366,498.
or 1,889%.
The wide extent to which distribution of stock ownership of New York
City banks has proceeded is indicated by the following table, showing the
average holding per stockholder of 15 representative New York City banks:
AVERAGE HOLDING OF EACH STOCKHOLDER IN 15 NEW YORK CITY
BANKS.
Banks
Stocks Under $50 per Share.
Bank of the Manhattan Co
Chase National
Chemical Bank & Trust
Empire Trust
Irving Trust
Manufacturers Trust
National City
Public National
Title Guarantee & Trust
Stocks Over $50 per Share—
Bankers Trust
Brooklyn Trust
Central Hanover
Corn Exchange
Guaranty Trust
New York Trust
Average Holding
Dec. 30 1933. Dec. 31 1932,
82
82
143
85
73
73
68
120
123
89
89
160
84
75
79
73
121
134
128
29
127
143
38
98
135
29
136
160
39
103
Annual Statement of Federal Reserve Bank of New
York—Gross Earnings at $17,523,930 in 1933 Compare with $15,948,943 in 1932—Net Income in 1933
Totaled Only $6,197,726, Whereas 1932 Total Was
$10,404,550.
The 1933 gross earnings of the Federal Reserve Bank of
New York exceeded by $1,574,987 those of 1932—the total
for the latest year being $17,523,930, and comparing with
$15,948,942 in 1932. The net income in 1933, however,
was considerably below that of 1932—the figures for the
respective years being $6,197,726 and $10,404,550. Out of
the net income of $6,197,726 this year the Bank paid dividends of $3,509,873 (compared with $3,562,030 the year
603
before) and added to surplus in 1933 $2,687,853; in the previous year a total of $9,981,267 was carried to surplus, of
which $3,138,747 represented the restoration of depreciation
reserve on United States Government securities. The Bank's
profit and loss account in 1933, in which comparison is made
with 1932, was contained in the 19th annual statement of
thelcondition of the Bank at the close of 1933, issued on
Jan. 19 by Governor George L. Harrison. We give the same
herewith:
PROFIT AND LOSS ACCOUNT FOR THE CALENDAR YEARS 1933 & 1932.
1932.
1933.
Earnings—
$2,572,465.16 $3,276,594.84
From loans
288,117.42
932,504.88
From bills bought in open market
14,255,732.12 11,157,506.72
From United States Government obligations
582,336.21
407,61f.56
Other earnings
$17,523,930.26 $15,948,942.65
Additions to Earnings—
For sundry additions to earnings
$746,616.78 $1,362,375.51
Deductions from Earnings—
For current bank operation (these figures include most
of the expenses incurred asfiscal agent of the U.S)_ $6,515,226..40 $6,190,061.12
For Federal Reserve currency, mainly the cost of
printing new notes to replace worn notes in circulation, to maintain supplies unissued and on hand,
the cost of redemption, and tax on Federal Reserve
537,125.04
186,667.16
bank notes
For depreciation on bank premises, reserve for
5,020,469.25
530,039.45
losses, &c
Total deductions from earnings
$12,072,820.69 $6,906,767.73
Netincome available for diva.,& additions to surplus- $6,197,726.35 $10,404,550.43
Distribution of Net Income—
Dividends paid to member banks limited by law to
$3,509,872.84 $3,562,030.29
the rate of 6% per annum on paid-in capital
Additions to surplus. Under Sec. 7 of the Federal
Reserve Act, as amended in 1933, all net income
after divs.01 6%.accumulates as a surplus fund__ _ 2,687,853.51 6,842,520.14
Total net income distributed
$6,197,726.35 $10,404,550.43
Additions to Surplus Account—
$2,687,853.51 $6,842,520.14
Net income
Restoration of depreciation reserve on U. S. Govt.
3,138,746.82
securities
Total additions to surplus account
32,687,853.51 39,981,266.96
Treasury Department's New Financing Offered Total
of $1,000,000,000 Government Securities in Form of
Treasury
$500,000,000 or Thereabouts of 2
Notes Due March 15 1935 and $500,000,000 or Thereabouts of 13/3% Certificates of Indebtedness Maturing Sept. 15 1934—Subscriptions Total $4,770,000,000.
A new offering this week of Treasury Securities to the total
amount of $1,000,000,000 brought a quick response, the
closing of the books having been announced at the close of
business Jan. 24—the day on which they were opened.
Yesterday (Jan.26), Secretary of the Treasury, Morgenthau,
announced that the issue was oversubscribed nearly five
times. Of the total offering of $1,000,000,000, $500,000,000
or thereabouts, consists of 23/% Treasury Notes (series
C 1935), maturing in 131 months, and $500,000,000 or
Treasury certificates of indebtedness
thereabouts, of 1
(series TS-1934), maturing in 73' months.
Regarding Secretary Morgenthau's announcement yesterday of the heavy oversubscription, Associated Press advices
from Washington last night (Jan. 26), said:
The offering of $500,000,000 worth of Treasury notes paying 2;4%
attracted subscriptions of more than 83,415,000,000 and the $500,000,000
worth of 1%% certificates brought offers of $1,355,000,000.
The two issues, representing the Government's start on a 310,000,000,000
borrowing program, drew subscriptions of more than 34,770,000,000, or
nearly half the entire amount to be borrowed between now and June 30,
Mr. Morgenthau said, and added that subscriptions on the note issue up
to $10,000 were allotted in full and that all other subscriptions were allotted
14%, but not less than $10,000 on any one subscription.
Similarly $10,000 subscriptions were allotted in full on the certificates
and all other subscriptions 38%•
"Further details as to subscriptions and allotments will be announced
when final reports are received from the Federal Reserve Banks," Mr.
Morgenthau said.
Announcement of the new financing was made on Jan. 23
by Secretary of the Treasury Henry Morgenthau, Jr., and
in his notice on Jan. 24 of the closing of the books he stated
that all subscriptions mailed before midnight that day would
be considered as having been entered before the closing time.
Both notes and certificates are exempt, both as to principal
and interest, from all taxation (except estate or inheritance
taxes), Federal or State. The notes and certificates will be
acceptable to secure public moneys, but neither of the issues
will bear the circulation privilege. The Treasury notes will
be dated Jan. 29 1934, and will bear interest from that date
at the rate of 2
per annum, payable on a semiannual
basis. They will mature March 15 1935, and will not be
subject to call for redemption prior to that date. The certificates will be dated Jan. 29 1934, and will bear interest
from that date at the rate of 1%% per annum, payable on a
semiannual basis. They will mature Sept. 15 1934. All
subscriptions for amounts up to and including $10,000, will
be allotted in full; all other subscriptions will be allotted on
an equal percentage basis. The Treasury notes will be issued
604
Financial Chronicle
Jan. 27 1934
in bearer form only, in denominations of $100, $500, $1,000, year. The certificates of indebtedness will be issued in bearer form only.
$5,000,$10,000 and $100,000,with interest coupons attached, In denominations of $500, $1,000 $5,000, $10,000 and $100,000, with two
coupons attached,payable on a semi-annual basis on March 15 and
payable on a semiannual basis on March 15 and Sept. 15 interest
Sept. 15 1934.
in each year. The certificates of indebtedness will be issued
On Jan. 24, with the closing of the books, Secretary
in bearer form only, in denominations of $500, $1,000,
Morgenthau
was quoted as expressing himself as "delighted
$5,000, $10,000 and $100,000, with two interest coupons
attached, payable on a semiannual basis on March 15 and with the result." The following notice was issued by the
New York Federal Reserve Bank regarding the closing of
Sept. 15 1934.
subscription
lists:
The offering represents the initial financing in furtherance
FEDERAL RESERVE BANK OF NEW YORK.
of the Administration's new monetary program, and in
Fiscal Agent of the United States.
commenting thereon the Washington correspondent of the
(Circular No. 1344, Jan. 24 19341
New York "Herald Tribune," observed:
SUBSCRIPTION BOOKS CLOSED.
Of more significance in the monetary situation were the conservative
implications of the announcement, which were supported by the following
authoritative information from Administration quarters:
The Treasury projects orthodox routine financing in the coming six
months. The operations will be similar to those in the past unless something now unforeseen occurs in the fiscal situation. Under this program
the only change'will be that large financing offerings will necessarily come
considerably more frequently.
Following the orthodox pattern, the Treasury will proceed by one or
more new conversion offers to meet the problem of the $1.000.000,000 of
of 4 % Fourth Liberty Loan bonds which have been called for redemption
April 15 and are still outstanding.
The offerings from time to time are planned to be at terms which the
contemporary mark t indicates will be most favorable.
The changes affecting Treasury financing operations proposed in the
pending monetary legislation at the Capitol cover no calculated scheme
for radical innovations and the Administration sponsors of these provisions
are surprised at some ofthe interpretations of them. They claim the changes
simply modernize the law in accordance with long-felt needs and provide for
readjustments to make the familiar security operations more smooth.
From Washington, Jan. 23, the New York "Times" had
the following to say in part:
Absorption Held Assured.
The stage had been set for to-day's announcement by a meeting of the
Federal Reserve Board and the system's Regional Bank Governors, at which
full co-operation of the Reserve Banks as fiscal agents for the Treasury
was promised, and by a final consultation of fiscal experts with President
Roosevelt at the White House last night. These talks appeared to give
complete re-assurance to the Administration that there was no necessity
for departing from the usual financing procedure and that the country's
response to a popular offering would be a heavy oversubscription. The
President was told, it is understood, that the banks of the country are in
excellent shape to absorb heavy issues.
The combined offering announced to-day was dated Jan. 29, as it is imperative that the Government quickly replenish the balance in the Treasury
general fund, which has shrunk to about $500,000,000, while expenditures
are averaging more than $30.000,000 a day. There are no outstanding
maturities to be met on Jan. 29 and the public debt will accordingly be increased by the amount of allotments made. On Jan. 20, the latest figure
available, the gross public debt was $23,876,800,000, and with the new issue
marketed it will reach about $25,000,000,000.
The same paper in a dispatch from Washington, Jan. 25,
said in part:
With the new Treasury notes maturing in 13X months and the certificates
In 73 months, the allotments will add that amount to the short-term debt,
which already has assumed very large proportions.
The administration, it is understood, charted this course, however, in
the belief that to market long-term bonds through a patriotic appeal would
be unwise; that short-term issues best fit present market conditions, and
that as the economic situation improves the refunding of the large shortterm maturities will be greatly simplified.
On Offering of United States of America Treasury Notes
2X % Series C-1935.
On Offering of United States of America Treasury Certificates
of Indebtedness 134% Series TS-1934.
To all Banks and Trust Companies in the Second
Federal Reserve District and Others Concerned:
In accordance with instructions from the Treasury Department the subscription books for the offering of United States of America Treasury notes.
234% Series C-1935, due March 15 1935. dated and bearing interest from
Jan. 29 1934, and for the offering of United States of America Treasury certificates of indebtedness, 134% Series TS-1934. duo Sept. 15 1934, dated
and bearing interest from Jan. 29 1934, were closed at the close of business
to-day, Wednesday, Jan. 24 1934.
All subscriptions actually mailed before midnight, Wednesday, Jan. 24
1934, as shown by post office cancellation, will be considered as having been
entered before the close of the subscription books.
GEORGE L. HARRISON,
Governor.
Details of the offering were contained in the following
Treasury Department circulars:
UNITED STATES OF AMERICA
Treasury Notes-234% Series C-1935. Due March 15 1935.
Dated and bearing interest from Jan. 29 1934.
The Secretary of the Treasury offers for subscription, at par and accrued
interest, through the Federal Reserve banks, under the authority of the act
approved Sept. 24 1917, as amended, Treasury notes of Series C-1935.
The amount of the offering is $500,000,000, or thereabouts.
Description of Notes.
The notes will be dated Jan. 29 1934, and will bear interest from that
date at the rate of 234% per annum, payable on a semi-annual basis on
March 15 and Sept. 15, in each year. They will mature March 15 1935 and
will not be subject to call for redemption prior to maturity.
Bearer notes with interest coupons attached will be issued in denominations of $100, $500, $1,000, $5,000, $10,000 and $100.000. The notes will
not be issued in registered form.
The notes shall be exempt, both as to principal and interest, from all
taxation (except estate or inheritance taxes) now or hereafter imposed by
the United States, any State, or any of the possessions of the United States,
or by any local taxing authority.
The notes will be accepted at par during such time and under such rules
and regulations as shall be prescribed or approved by the Secretary of the
Treasury in payment of income and profits taxes payable at the maturity
of the notes.
The notes will be acceptable to secure deposits of public moneys, but
will not bear the circulation privilege.
Application and Allotment.
Applications will be received at the Federal Reserve banks and branches
and at the Treasury Department, Washington. Banking Institutions
generally will handle applications for subscribers, but only the Federal
Reserve banks and the Treasury Department are authorized to act as
Maturities in Current Year.
official agencies. Subscriptions for amounts up to and including $10,000,
Prior to the present offering, short-dated debt which falls due in the
will be allotted in full; all other subscriptions will be allotted on an equal
current calendar year included $1,627,501,000 in certificates,$1,123,609,000
percentage basis.
In Treasury bills and $589,000,000 in Treasury notes, a total of
The Secretary of the Treasury reserves the right to reject any subscrip$3,340.110.000. Also outstanding are $4,289,000,000 in Treasury notes maturing
tion, in whole or in part, and to allot less than the amount of notes applied
from 1935 to 1938 inclusive. about $770,000,000 of them in 1935. The
for and to close the books as to any or all subscriptions at any time without
$1,000,000,000 of so-called Fourth Liberty bonds to be met by April 15 also
notice; the Secretary of the Treasury also reserves the right to make allotfall in the category of maturities which must be handled quickly.
ment in full upon applications for smaller amounts, to make reduced
allotments upon, or to reject, applications for larger amounts, and to make
Secretary Morgenthau's announcement on Jan. 23 of the classified
allotments and allotments upon a graduated scale; and his action
new $1,000,000,000 financing, follows:
In these respects shall be final. Allotment notices will be sent out promptly
upon allotment, and the basis of the allotment will be publicly announced.
The Treasury is to-day offering for subscription at par and accrued interest, through the Federal reserve banks,$500,000,000, or thereabouts. 23. %
Payment.
Treasury notes of Series C-1935. and $500,000,000, or thereabouts, 1X%
Payment at par and accrued interest for notes allotted must be made on
Treasury certificates of indebtedness of Series TS-1934. All subscriptions
or before Jan. 29 1934, or on later allotment. Any qualified depositary will
for amounts up to and including $10,000, will be allotted in full; all other
be permitted to make payment by credit for notes allotted to it for itself
subscriptions will be allotted on an equal percentage basis. The books
and
its customers up to any amount for which it shall be qualified in excess
will be opened for subscriptions to-day, Jan. 24 1934.
of
existing deposits, when so notified by the Federal Reserve Bank of its
The Treasury notes will be dated Jan. 29 1934, and will bear interest
District. Applications, unless made by an incorporated bank or trust
from that date at the rate of 2X% per annum, payable on a semiannual
company, or by a responsible and recognized dealer in Government securibasis. They will mature March 15 1935, and will not be subject to call for
ties, must be accompanied by payment in full or by payment of 10% of
redemption prior to that date.
the amount of notes applied for. The forfeiture of the 10% payment may
The certificates of indebtedness will be dated Jan. 29 1934, and will bear
be declared by the Secretary of the Treasury if payment in full is not
Interest from that date at the rate of 1 % per annum, payable on a semicompleted on the prescribed date in the case of subscriptions allotted.
annual basis. They will mature Sept. 15 1934.
The Treasury notes and Treasury certificates of indebtedness will be exGeneral Provisions.
empt, both as to principal and interest, from all taxation (except estate or
As fiscal agents of the United States, Federal Reserve banks are authorized
inheritance taxes) now or hereafter imposed by the United States, any
subscriptions
and to make allotments on the
and requested to receive
State, or any of the possessions of the United States, or by any local taxing
basis and up to the amounts indicated by the Secretary of the Treasury
authority.
to the Federal Reserve banks of the respective districts. After allotment
Applications will be received at the Federal reserve banks and branches
and upon payment Federal Reserve banks may issue interim receipts pendand at the Treasury Department. Washington. Banking institutions gening delivery of the definitive notes.
erally will handle applications for subscribers, but only the Federal reserve
IIENRY MORGENTHAU JR.
banks and the Treasury Department are authorized to act as official agenSecretary of the Treasury.
cies.
Treasury Department,
Applications, unless made by an incorporated bank or trust company, or
Office of the Secretary,
by a responsible and recognized dealer in Government securities, must be
Jan. 24 1934.
accompanied by payment in full or by payment of 10% of the amount of
Department Circular No. 504 (Public Debt).
notes or certificates applied for. The forfeiture of the 10% payment may
UNITED STATES OF AMERICA.
be declared by the Secretary of the Treasury if payment in full is not completed on the prescribed date in the case of subscriptions allotted.
Treasury Certificates ofIndebtedness-134% Series TS-1934, Due Sept. 15
The Treasury notes will be issued in bearer form only, in denominations
1934. Dated and bearing interest from Jan. 29 1934.
of $100, $500. $1,000. $5,000, $10,000 and $100.000, with interest coupons
The Secretary of the Treasury offers for subscription, at par and accrued
attached, payable on a semiannual basis on March 15 and Sept. 15 in each
interest, through the Federal Reserve banks, under the authority of the
Volume 138
Financial Chronicle
Act approved Sept. 24 1917. as amended, Treasury certificates of indebtedness of Series TS-1934. The amount of the offering is S500.000,000 or
thereabouts.
Description of Certificates.
The certificates will be dated Jan. 29 1934 and will bear interest from that
date at the rate of 1 % per annum, payable on a semi-annual basis.
They will be payable on Sept. 15 1934.
Bearer certificates will be issued in denominations of $500. $1.000,
$5.000, $10,000 and $100,000. The certificates will have two interest
coupons attached, payable on March 15 and Sept. 15 1934.
The certificates shall be exempt, both as to principal and interest, from
all taxation (except estate and inheritance taxes) now or hereafter imposed
by the United States, any State, or any of the possessions of the United
States, or by any local taxing authority.
The certificates will be accepted at par during such time and under such
rules and regulations as shall be prescribed or approved by the Secretary
of the Treasury in payment of income and profits taxes payable at the
maturity of the certificates.
The certificates will be acceptable to secure deposits of public moneys,
but will not bear the circulation privilege.
Application and Allotment.
Applications will be received at the Federal Reserve banks and branches
and at the Treasury Department, Washington. Subscriptions for amounts
up to and including $10,000 will be alloted in full; all other subscriptions
will be allotted on an equal percentage basis.
The Secretary of the Treasury reserves the right to reject any subscription,
in whole or in part, and to allot less than the amount of certificates applied
for and to close the books as to any or all subscriptions at any time without
notice; the Secretary of the Treasury also reserves the right to make allotment in full upon applications for smaller amounts, to make reduced
allotments upon, or to reject, applications for larger amounts, and to make
classified allotments and allotments upon a graduated scale; and his action
in these respects shall be final. Allotment notices will be sent out promptly
upon allotment, and the basis of the allotment will be publicly announced.
Payment.
Payment at par and accrued interest for certificates allotted must be
made on or before Jan. 29 1934, or on later allotment. Any qualified
depositary will be permitted to make payment oy credit for certificates
allotted to it for itself and its customers up to any amount for which it
shall be qualified in excess of existing deposits, when so notified by the
Federal Reserve Bank of its District. Applications, unless made by an
incorporated bank or trust company, or by a responsible and recognized dealer in Government securities, must be accompanied by payment
in full or by payment of 10% of the amount of certificates applied for.
The forfeiture of the 10% payment may be declared by the Secretary
of the Treasury if payment in full is not completed on the prescribed date
in the case of subscriptions allotted.
General Provisions.
As fiscal agents of the United States, Federal Reserve banks are authorized and requested to receive subscriptions and to make allotments on
the basis and up to the amounts indicated by the Secretary of the Treasury
to the Federal Reserve banks of the respective districts. After allotment and upon payment Federal Reserve banks may issue interim receipts
pending delivery of the definitive certificates.
HENRY MORGENTHAU Jr..
Secretary of the Treasury.
Treasury Department,
Office of the Secretary,
Jan. 24 1934.
Department Circular No. 505 (Public Debt).
Tenders of $303,560,000 Received to Offering of $125,000,000 or Thereabouts of 91-Day Treasury Bills
Dated Jan. 24 1934—Amount Accepted $125,126,000
Bills Sold at Average Rate of 0.67%.
Tenders to the offering of $125,000,003 or thereabouts of
91-day Treasury bills dated Jan. 24 1934, which were received
at the Federal Reserve Banks and the branches thereof up
to 2 P. M., Eastern Standard time, Jan. 22, amounted to $303,560,000. Of this amount, bids of $125,126,000 were accepted,
Henry Morgenthau Jr., Secretary of the Treasury, announced
on Jan. 22. Reference to the offering was made in our issue
of Jan. 20, page 417. The bills will mature on April 25 1934.
The average price of the Treasury bills to be issued, Mr.
Morgenthau said, 'is 99.831 and the average rate is about
0.67% per annum on a bank discount basis, the same rate at
which the last previous offering of bills (dated Jan. 17)
sold. Previous offerings brought rates of 0.62% (bills dated
Jan. 10); 0.62% (bills dated Jan. 3); 0.72% (bills dated
Dec. 27) and 0.74% (bills dated Dec. 20).
Except for one bid of $10,000 at 99.976, the accepted bids
ranged in price from 99.863, equivalent to a rate of about
0.54% per annum, to 99.820, equivalent to a rate of about
0.71% per annum, on a bank discount basis. Only part of
the amount bid for at the latter price was accepted.
New Offering of $150,000,000 or Thereabouts of 91-Day
Treasury Bills to Be Dated Jan. 31 1934.
Announcement of a new offering of 91-day Treasury bills
to the amount of $150,000,000 or thereabouts was made on
Jan. 24 by Henry Morgenthau Jr., Secretary of the Treasury.
Tenders to the offering will be received at the Federal Reserve Banks, or the branches thereof, up to 2 P. M., Eastern
Standard time, Monday, Jan. 29. No tenders will be received
at the Treasury Department, Washington. Secretary Morgenthau said that the bills will be dated Jan. 31, and will
mature on May 2 1934, and on the maturity date the face
amount will be payable without interest. The bills, wbich
will be used in part to meet a similar issue of $60,180,000
605
maturing on Jan. 31, will be sold on a discount basis to the
highest bidders. The Secretary's announcement also said
in part:
They (the bills) will be issued in bearer form only, and in amounts
or denominations of $1,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value).
No tender for an amount less than $1,000 will be considered. Each tender
must be in multiples of $1,000. The price offered must be expressed on
the basis of 100. with not more than three decimal places, e. g., 99.125.
Fractions must not be used.
Tenders will be accepted without cash deposit from incorporated banks
and trust companies and from responsible and recognized dealers in investment securities. Tenders from others must be accompanied by a deposit
of 10% of the face amount of Treasury bills applied for, unless the tenders
are accompanied by an express guaranty of payment by an incorporated
bank or trust company.
Immediately after the closing hour for receipt of tenders on Jan. 29 1934,
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. 31 1934.
The Treasury bills will be exempt, as to principal and interest, and any
gain from the sale or other disposition thereof will also be exempt, from
all taxation, except estate and inheritance taxes. No loss from the sale
or other disposition of the Treasury bills shall be allowed as a deduction,
or otherwise recognized, for the purposes of any tax now or hereafter Imposed by the United States or any of its possessions.
Only 20 Individuals Had Million-Dollar Incomes in
1932, Against 513 in 1929—Bureau of Internal
Revenue Report Shows Average Net Return Down
from $6,000 to $2,974—No Personal Incomes Above
$5,000,000 in 1932.
Only 20 individuals had net income of $1,000,000 or
more in the United States in 1932, compared with 513 in
1929, according to figures issued Jan. 17 by the Bureau of
Internal Revenue. There were 38 persons who reported
net income of more than $5,000,000 in 1929, as against
none in 1932. Aggregate net income reported by the
$1,000,000 and over class for 1932 was $35,239,557, compared with $1,212,098,784 for 1929. There were 3,760,402
individuals who filed income returns for 1932, and of this
number 1,864,959 reported taxable incomes. Total net
income of this class amounted to $11,185,499,309 with a
tax liability of $324,744,617. The number of returns was
644,085 above the preceding year, while the net income
dropped $2,045,852,733 and the tax liability was $83,461,742
higher. For all returns the average net income was $2,974
and the average tax liability $86.36. The tax liability on
taxable returns was $174, and the average rate of tax OD
all returns filed was 2.90%.
Further details of the Internal Revenue Bureau report
follow, as given in a Washington dispatch of Jan. 17 to the
New York 'Journal of Commerce":
In 1929 the net income was $6,196 and for 1928 $8,335.
Corporation Results.
r Corporations filing tax returns for 1932 numbered 481,368,of which 78.775
showed net incomb of $1,851,575,582 and tax payments of E277,689,311.
The report showed that returns showing net income decreased 91,908. as
compared with 1931. Net income dropped $1,259,986. There were
348,956 corporations showing no net income, an increase of 79,250 from
the year before. Corporations without net income reported deficits of
$6.420,293.721, a gain of $322,666.997 over 1931.
In 1932, 3,420,995 individuals filed returns in the $5,000 and under net
income class; 1,535,101 were taxable. This group reported $7,112,000,000
net Income and paid $42.200,000 tax. More returns, a greater income
and higher tax was paid by this classification of taxpayers than any other.
A total income of $35.239,566 in net income and $15.534,321 in tax
was reported by the individuals filing incomes of $1,000,000 and over.
Sources of income were reported as follows: Wages and salaries. $7.764,393,347; business, $1,287,883,245; partnerhsips, 5450.275.911.
Profits from the sale of teal estate, stocks and bonds reported for tax
on capital net gains, $49.840,918; all other. $106,565,903; rents and
royalties. $492,503,231.
Interest on Government obligations not wholly exempt from tax. $28.377,791; dividends on stocks on domestic corporations, $1,951,027,585:
fiduciary, $305,391,808; interest other than tax exempt, $1,162,584,454;
other income $105,450,450, gross income $13764294643.
The report gave the following deductions: Net loss from the sale of
real estate, stocks and bonds, other than reported for tax credit on capital
net losses, $351,809,220. Net loss from business and partnerships, $119,486,346. Contributions, $291,006,358. All other, $1,816,493,410. Total
deductions, $2,478,795,334.
Corporations Have Income.
Corporation gross income was given as $44,512.434,450 for the class
having net income for 1931,as compared with $27.153.732.012for 1932 For
1931 the net income was $3,110,642,568. as compared with $1 851,575,582
for 1932. Corporations paid $331,119,732 tax in 1931, against $277,689,311 in 1932. Corporations showing no net income for 1931 had gross
income of $48,410.589,932 and $38.493,029,862 for 1932. The 1931
deficit was $6.087,626,724 and for 1932 $6.420,293.721.
The various net income desires for 1929 and 1932 were given as gollows:
Net income Class—
1932.
1929.
$1,000,000 to $1,500,000
234
12
1.500,000 to 2,000,000
123
2,000,000 to 3,000,000
67
3
3,000,000 to 4,000,000
32
4,000,000 to 5,000,000
19
Over $5,000,000
38
606
Financial Chronicle
House Ways and Means Committee Approves Proposed
Changes in Income Tax Law to Add $200,000,000
Annual Revenue—Sets Normal Flat Rate of 4%,
with Surtax Beginning at 4% on Incomes Over
$4,000 and Advancing to 59%—New Schedules
Would Aid Salaried Man but Place Heavier Levies
on Income Derived from Investments.
Drastic revision of the Income Tax Law to increase its
yield to the Government by an estimated $200,000,000 is in
prospect if Congress acts favorably upon the recommendations which were approved Jan. 25 by the House Ways and
Means Committee. It is expected that the proposed changes
in the law will be reported to the House next week. If
adopted, the new tax schedules will apply on income received during 1934. The committee agreed to establish a
single normal income tax rate of 4%, instead of the present
schedule of 4% on the first $4,000 of net income and 8%
on the remainder. It also decided to begin surtax rates at 4%
on incomes of more than $4,000, graduating them upward
through 27 brackets to 59% on all net incomes above $1,000000. The recommendations of the committee were summarized, in part, as follows in a Washington dispatch of
Jan. 25 to the New York "Times":
Under its new rate schedule the committee figured that no tax increase—
in fact nothing but decreases—would result to married persons with income
from salary, business or wholly taxable interests. It calculated some slight
increases for single persons with the same character ofincome above $12,000.
But it proposed to get much revenue from both married and single persons
whose incomes above the $5,000 mark were derived from dividends or partially tax-exempt bonds.
The income-tax revision was considered the chief item in a number of
recommendations agreed upon by the committee. The agreements resulted
in several compromises between the Treasury and a Ways and Means sub-.
committee which worked all last Summer on the problem of revising the
income-tax structure.
Chairman Doughton said he hoped to have the bill ready fJr introduction
by Wednesday.
Other Committee Suggestions.
Other recommendations agreed upon to-day included:
Husband and wife compelled to file joint income-tax return. (A Treasury
recommendation.)
Continuance of present depreciation and depletion allowances. (Treasury
recommendation.)
Continuance of consolidated and affiliated returns, but with a 2% penalty
differential instead of the present 1%. (Compromise between Treasury
and sub-committee.)
Earn d-income deduction of 10% on earned incomes of $8,000 and less,
the first $3,000 presumed to be "earned income," but th • remaining $5,000
to be proved as earned. (Proposal of Representative Bacharach.)
Revision of the capital gains and losses provisions to provide the following
basis for taxation: 100% basis if capital asset is held not more than one year;
80% if held more than one year but less than two; 60% if held more than
two years but not more than five; 40% if held more than five years.
A tax of 35% levied on the "undistributed adjusted net income" of
personal holding companies, the income to be determined, according to the
committee, "by adding to the net income of a corporation the amount of
dividends received from other corporations and the amount of partially taxexempt interest and by subtracting therefrom Federal income taxes paid,
contributions or gifts not otherwise allowed for income tax purposes, and
actual losses from the sales or exchanges of capital assets to the extent to
which they are not otherwise allowed." This change is estimated to increase
annual revenue by $25,000,000 or more.
Tax Refunds in 1933 Fiscal Year Totaled $51,484,000, or
About Half Amount Returned by Treasury in
Previous 12 Months—More Than Offset by Additional Assessments of $357,581,000—United Motors
Corp. Got Largest Refund—Many Notables on List.
Treasury tax refunds during the fiscal year ended June 30
1933 totaled $51,484,845.92, of which $11,461,899.04 represented interest, according to a tabulation furnished the House
of Representatives on Jan. 24 by the Bureau of Internal
Revenue. Aggregate refunds were approximately one-half
the $101,124,520 refunded in the preceding 12 months. The
Bureau pointed out that this sum is small in comparison with
the amount of additional taxes assessed during the year.
These additional assessments amounted to $357,581,305.19.
Of the total refunded during the last fiscal year, approximately $20,000,000 was on 1933 taxes, $24,000,000 on 1932
taxes and the balance on collections made in previous years.
Most of the returns were made to persons and corporations
in Eastern financial centers.
A Washington dispatch of Jan. 24 to the New York
"Herald Tribune" contained the following additional data:
Notable in the lists submitte 1 to the House was the large number of
substantial refunds made to estates of persons recently deceased. Shrinkage
in the value of these estates during the depression is responsible. One of
these refunds, the largest to an estate, was that granted to the estate of
John I. Beggs, in the Florida distrct. This amounted to $769,904.21.
Closely approximating this sum was a refund of $750,000 made to the
Mrs. Maria Dolores D. de Watson estate, Los Angeles.
The largest refund of all, $1,615,769.50 was made to the United Motors
Corp. of New York. This was the only one in excess of a million dollars
and was more than double the amount of refund to any other business
corporation. The second largest, among the corporations, was to the Northern Pacific Railroad amounting to $774,251.80; and,in order, the DaytonWright Airplane Co., Dayton, Ohio, $431,954.58; Ohio Oil Co., Findlay,
Ohio, $311,651.67; New Departure Manufacturing Co., $299,827.32; J. W.
Butler Paper Co., Chicago. $297.300.32; Nolde & Horst Co., Reading, Pa.,
$262,037.22, and the Railway Express Co., $252,558.61.
fan. 27 1934
An exceptionally large number of large refund claims were handled
successfully by an attorney in Shreveport, La., and among those were the
largest granted to individuals. Heading this list is a refund of $278,862.02
to Mrs. J. B. Findlay, although Mr. and Mrs. E. G. Palmer received
$174,043 each. Next on the list of individuals is Arthur Curtiss James of
New York, who received a refund of $269,355.82. Others were Harry W.
Dubiske, of Chicago. $251,065.03; Representative E. W. Marland, of
Ponca City, Okla., $140,698.95, and William C. Durant, of Deal, N. J.,
$122,282.11.
Andrew W. Mellon, former Secretary of the Treasury, received a refund
of $8,105.22. Robert W. Bingham, Mr. Mellon's successor as American
Ambassador to Great Britain, received a refund a $13,184.38. James W.
Gerard, American Ambassador to Germany during the Wilson Administration, received $1,105.55.
Of the prominent individuals not now in public life, among the more
outstanding were Mrs. Ruth Hanna McCormick Sims, former Representative, with $3,126.44; Mrs. Alice Hay Wadsworth, wife of the Representative, $1,510.52; W. W. Atterbury, President of the Pennsylvania Railroad,
$5,831.57; the late Cyrus H. K. Curtis, $11,893.97; Arthur Somers Roche,
author, $3,214.43 and Martin J. Insull, of Chicago utilities fame,$2,553.15.
Colonel Jacob Ruppert, owner of the New York Yankees, as well as
Ruppert's Brewery, received a refund of $6,532.85, and the American
Baseball Club of Philadelphia, better known as the Athletics, received
$13,297.33.
In Hollywood, the refunds of those identified with the moving picture
colony were small. There was one of $5,028.93 to John Barrymore; another
of $1,526.22 to Dorothy Mackaill; $844.95 to Ernest Lubitch and $715.82
to Walt Disney. Rupert Hughes. received $551.13 and Tommy Milton,
the automobile race driver, received $559.59. Among the opera singers
only two refunds were reported: $3,292.03 to Giovanni Martinelli and
$1,595.42 to Guiseppe De Luca.
Other refunds to trusts and estates of well known people included $288,530.90 to the Astor Trust; $31,930.02 to the estate of William Rockefeller:
$15,766.67 to the estate of August Belmont; $2,067.57 to the estate of
Nathan Strauss, and $3,612.37 to the James A. Stillman Trust,
National Income Dropped from $81,000,000,000 to $49,000,000,000 Between 1929 and 1932—Survey by
Bureau of Foreign and Domestic Commerce Indicates 40% Decrease—Largest Decline in Case of
Labor Income—Distributions from Property Off
30%.
A new series of basic estimates of the National income,
said to be the most detailed and complete ever compiled,
have been submitted to the Senate by the Bureau of Foreign
and Domestic Commerce, Willard L. Thorp, Director,
announced on Jan. 22. Total income distributed to individuals throughout the Nation, according to the report,
was $81,000,000,000 in 1929, but dropped to $49,000,000,000
in 1932,a decline of 40%. During the same period production
income, which totaled $83,000,000,0000 in 1929, fell to
$38,300,000,000 at the end of 1932, a decrease of 54%.
The survey, which required more than a year of intensive
research for completion, was prepared with the co-operation
of the National Bureau of Economic Research, Inc. A
press release by the Department of Commerce explained the
report in some detail, as follows:
In making these estimates public. Mr. Thorp ,mid. "The completion of
the income study for the United States Senate marks a new step forward
in our comprehension of our economic machinery and processes. The measurement of the flow of purchasing power is of vital importance to an understanding of our changing economic life. In recent years when shifts have
been rapid and economic problems have multiplied it has been especially
important to know in detail the type and amount of change in particular
industries, so that the kind and intensity of mmedial action could be
planned. These estimates are of basic importance to the development of
programs of taxation of industries and of individuals, and are fundamental
to the planning of broad economic readjustments, as well as of orderly
development within industries."
The full report, which presents over 200 tables giving details of the
form of payment and the industrial sources of income for each of the years
1929 to 1932, was referred to the senate Finance Committee, which has
authorized the release ofsummary date. The full report may be printed as a
Senate Document to be available sometime within the next few weeks.
The figures presented below are subject to slight modification, and all
1932 data are preliminary. In utilizing these estimates, care should be
taken to note the following: 1—Data is. insofar as possible, for the Continental United States. 2.—Certain items that might be classified as
income under concepts other than those employed by the investigators have
been excluded from the totals presented, i.e., imputed income from ownership of durable goods (including owned homes), the imputed value of
services of housewives and other members of the family, earnings from
odd jobs, relief and charity, earnings from illegal pursuits and changes in
value of assets not derived by groups professionally occupied in the handling
of assets.
The total income distributed to individuals throughout tho Nation was
81." billion dollars in 1929; 75.4 billion in 1930, 63.3 billion in 1931, and
49.0 billion in 1932, a decline of 40% between 1929 and 1932. Income
produced in each of these years amounted to 83.0, 70.5, 54.7 and 38.3
billion dollars, respectively, with the decline from 1929 to 1932 amounting
to 54%. The income distributed by industries in 1929 was less than that
produced to the extent of 2.0 billion dollars, this amount being retained by
corporate and individual enterprises. In the following years. however, the
amount distributed exceeded the amount produced, a draft being made
upon previously accumulated surpluses and assets; such withdrawal of
income exceeded income produced in 1932 by 10.6 billion dollars.
The study indicates that labor income amounted to about 53 billion dollars
in 1929, accounting for 65% of the total income distributed. Property
income and entrepreneurial income in the same year each amounted to
slightly over 12 billion dollars. or 15% of the total, while net rents made up
the remaining 5%. The total figures also include the net flow of international income Payments.
Wages have suffered the most severely in the general decline since 1929.
with a falling off of 60% in those industries in which it was possible to
segregate this item. Salaries dropped 40%, much less rapidly than wages,
with the most severe curtailment occurring in 1932. A significant divergence in declining trends is apparent as between labor income and property
income; by 1932 the former had fallen off 40%, while property income dis-
NATIONAL INCOME, PAID OUT AND PRODUCED.
(Millions of DoUars.)
Income paid out
Business savings or losses
Income produced
1929.
1930.
1931.
1932.
81,040
1,998
83,037
75,438
-4,955
70,484
63,289
--8,639
54,652
48,952
-10,603
38,349
Percentages of 1929.
Income paid out
Income produced
U.S.B.of L.B. cost of living index
U.S.B.of L.S. wholesale price index_ _ _
Subject to minor corrections.
1929.
1930.
1931.
1932.
100.0
100.0
100.0
100.0
93.1
84.9
97.4
90.7
78.1
65.8
88.9
76.6
60.4
46.2
80.4
68.0
NATIONAL INCOME PAID OUT, BY TYPES OF PAYMENT.
(Millions of Dollars.)
Salaries (selected industries) a
Wages (same as above)a
Salaries and wages (all other industries)._
Total labor income b
Dividends
Interest
Total property income c
Net rents and royalties
Entrepreneurial withdrawals
Total entrepreneurial income
Total income paid out
1929.
1930.
1931.
5,702
17,180
29,129
52,867
5,963
5,687
12,215
3,835
12,121
15,956
81,040
5,660
14,209
27,902
48,688
5,795
5,826
12,238
3,237
11,275
14,512
75,438
4,738
10,541
24,759
41,027
4,311
5,662
10,508
2,494
9,259
11,753
63.289
1932.
3,382
6,839
20,367
31,595
2,590
5,506
8,489
1.691
7,181
8.872
48.952
Percentages of 1929.
1929.
1930.
1931.
1932.
Salaries (selected industries) a
100.0
99.3
83.1
59.3
Wages (same as above) a
10C.0
82.7
61.4
39.8
Salaries and wages (all other industries)- _ 100.0
95.8
85.0
69.9
Total labor incomes b
92.1
77.6
100.0
59.8
Dividends
97.2
72.3
43.4
100.0
Interest
102.4
99.6
100.0
96.8
Total property income c
86.0
100.2
100.0
69.5
Net rents
65.0
84.2
100.0
44.1
Entrepreneurial withdrawals
93.0
76.4
59.2
100.0
Total entrepreneurial income
91.0
73.7
55.6
100.0
Total income paid out
78.1
93.1
60.4
100.0
a Include mining, manufacturing, construction, steam railroads, pullman railway
express and water transportation.
b Includes also employees' pensions and compensation for injury.
C Includes also net balance of international flow of property incomes.
Subject to minor corrections.
INCOME PAID OUT, BY INDUSTRIAL DIVISIONS.
(Millions of Dollars.)
Agriculture
Mining
Electric light and power and gas
Manufacturing
Construction
Transportation
Communications
Trade
Finance
Government
Service
Miscellaneous
Total
1929.
1930.
1931.
6,341
2,123
1,306
18,157
3,135
6,657
915
11,238
9,778
6.459
8,643
6,288
5,707
1,776
1,503
16,141
2,825
6,199
950
10,424
9,038
6,764
8,198
5,913
4.500
1,285
1,461
12,488
1,896
5,233
897
9,103
7,761
6,393
• 6,959
4,913
3,442
851
1,216
8,373
864
4,021
808
7,326
6,019
6,794
5,434
3,804
81,040
75,438
63,289
48.952
1932.
Percentages of 1929.
Agriculture
Mining
Electric light
Manufacturing
Construction
mnsportation
Communications
Trade
Finance
Government
Service
Miscellaneous
Total
Note.-Subject to minor corrections.
1929.
1930.
1931.
1932.
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
90.0
83.6
115.1
889
90.1
93.1
103.8
92.8
92.4
104.7
94.9
94.0
93.1
71.0
60.5
111.9
68.8
60.5
78.6
98.0
81.0
79.4
105.2
80.5
78.1
78.1
54.3
40.1
93.1
46.1
27.6
60.4
88.3
65.2
61.6
105.2
62.9
60.5
60.4
477 Ounces of Newly Mined Silver Purchased by United
States During Week of Jan. 19-Total Purchases
Amount to 2,181 Ounces-Secretary Morgenthau's
Statement of Total Silver Receipts.
Since the issuance of President Roosevelt's proclamation
on Dec. 21, ratifying the silver agreement signed at London
607
Financial Chronicle
Volume 138
tributed receded by 30%. This situation was brought about by the maintenance of interest payments rather uniformly up to 1932, with only a small
decline then. Dividend payments were well maintained in 1930, but declined thereafter more rapidly than labor income.
Manufacturing was the largest industrial class contributing to income,
accounting for 22% of the total distributed in 1929. Trade, finance, and
services followed in order, accounting for 14, 12 and 11% of the total.
respectively.
The decline in income distributed was most severe in the construction
industry, the 1932 volume being but 28% of the amount paid out in 1929.
Income in mining fell off about 60% and in manufacturing about 55% in the
four-year period. In the manufacture group,the construction materials and
metals and metal products sections declined most severely, 70% and 67%.
respectively. It will thus be seen that the greatest declines have taken
place in the durable goods industries.
The general downward trend was least severe in the field of government
(In which expansion of employment and bonded indebtedness slightly raised
Income payments), electric light and power and gas, communications, and
food and food products manufacture.
Summary tables follow:
last July, and in which it was set forth that the United States
would purchase at least 24,421,410 ounces of silver annually,
receipts of silver by the United States mints totaled 2,181
ounces up to Jan. 19. Of this amount 1,789 ounces were received at Denver and 392 ounces at San Francisco. Henry
Morgenthau Jr., Secretary of the Treasury, announced on
Jan. 22 that 477 ounces were purchased during the week
ended Jan. 19, all of which was received by the Denver mint.
The President's proclamation of Dec. 21 was referred to in
our issue of Dec. 23, page 4440, and in our issues of Jan. 13,
page 254, and Jan. 20, page 429, we referred to the purchases
of silver during previous weeks. Secretary Morgenthau's
announcement of Jan. 22, contained in Washington advices to
the New York "Times" of Jan. 23, follows:
Receipts of silver by the United States mints under the Executive order
of Dec. 21 1933, were 477 ounces for the week ended Jan. 19 1934. All of
this was received by the Denver mint.
Total receipts since the President's proclamation became effective have
been 2,181 ounces, of which 1,789 ounces were received at Denver and 392
ounces at San Francisco.
Total silver production in the United States for the calendar year 1933
has been estimated by the Bureau of the Mint as 22,141,130 ounces. This
would indicate a monthly production of close to 2,000,000 ounces. The
relatively insignificant amount so far received by the mints is explained by
the fact that the production of refined silver is a by-product of the refinement of other metals, notably copper, and therefore a considerable time
necessarily elapses after the mining of silver-bearing ore until refined silver
may be delivered to the mints.
Inquiry has been made as to how many silver dollars have been coined
by the mints in pursuance of the Executive order. The answer is that none
have been minted. The Executive order authorizes the retention of onehalf of the silver received as seigniorage and the coinage of the remainder
into standard silver dollars. The 2,181 ounces of silver so far received
would thus enable the mints to coin about 1,500 standard silver dollars.
The capacity of the three United States mints, on a single-shift basis, is
140,000 silver dollars a day, as follows:
Philadelphia, 60,000; Denver, 40,000; San Francisco, 40,000.
To coin 1,500 standard silver dollars would take less than one-half hour's
operation at any one of the mints. The fact is that not enough silver has
been received to justify starting operations.
The total purchases and the distribution to the different
United States mints are as follows:
Week Ending
Jan. 5 1934
Jan. 12 1934
Jan. 19 1934
Total
Amount
Purchased
(In Ounces)
Received at
Received at
San Fran. Mint Denver Mint
(In Ounces)
(In Ounces)
1,157
547
477
392
765
547
477
2.181
392
1.789
Received at
Phila. Mini
(In Ounces)
$17,032,000 of Government Securities Purchased by
Treasury During Week of Jan. 20.
During the week ended Jan. 20 the Treasury purchased
$17,032,000 of Government obligations, Henry Morgenthau
Jr., Secretary of the Treasury, announced on Jan. 22. Over
half of this amount was for the account of the Federal Deposit Insurance Corporation, the Secretary said. Since the
inception of the Treasury's support to the Government bond
market two months ago-reference to which was made in
our issue of Nov. 25 1933, page 3769-the weekly purchases
have been as follows:
Nov.25 1933__ $8,748,000 Dec. 16 1933..$l6.600,000 Jan.
1934__$44,713,000
Dec. 2 1933__ 2,545,000 Dec. 23 1933__ 16,510,000 Jan. 13 1934_- 33,868,000
Dec. 9 1933._ 7,079,000 Dec. 30 1933.- 11,950,000 Jan. 20 1934__ 17,032,000
•
Burgess Industries in Freeport, Illinois Pays 500
Employes in Silver Coins.
Under date of Jan. 20 Associated Press ad-vices from
Freeport, Ill., said:
Forty thousand silver dollars jingled through the trade channels of Freeport to-day. The Burgess Industries met its payroll of 500 employes with
silver coins.
At daybreak a truck loaded with the cartwheels rolled up to the office
of the Burgess plant. There the coins were transferred into 500 individual
Paybags, substituting for pay envelopes. It was Freeport's first all-silver
payroll.
Paying several of its bills in silver, the Burgess company loaded two
wheelbarrows with several hundred pounds of the coins,carted them through
Freeport's main street and dumped them on the floor in the office of the
City Electric Light Co.
Mexico Signs Silver Pact.
A copyright cablegram Jan. 19 from Mexico City to the
New York "Herald Tribune" reports that the Foreign Office
announced that night that President Adelardo Rodriguez had
signed the Mexican ratification:of the silver agreement of the
London Economic Conference, which wasEapproved by the
Senate on Dec. 19. It is also stated that other signers inclra-h7tlie UitedStates, Australia, Canada, China -,- Spain,
India and Peru. The Foreign Office bulletin stated that
"the fundamental object of the agreement is to mitigate silver
price fluctuations."
608
House Passes Administration's So-Called Gold Bill
to Revalue Dollar and Establish Stabilization
Fund of $2,000,000,000—House Amendment Provides for Secrecy of Fund's Operations—Bill
Authorizes Government to Take Over Gold Holdings of Federal Reserve System—Amendments by
Senate Committee Proposed to Board in Control
of Five Members and Limit Life of Bill's Provisions
to Three Years—Former Stricken Out by Senate.
With general debate limited to three house, the House on
Jan. 20 quickly disposed of President Roosevelt's so-called
"gold bill," designed to revalue the dollar, passing the measure on that day by a vote of 360 to 40. The time limit on
debate was contained in a special rule brought before the
House when the bill was taken up on Jan. 20, and unanimously adopted, as follows:
HOUSE RESOLUTION 227.
in order
Resolved, That upon the adoption of this resolution it shall be
Whole
to move that the House resolve itself into the Committee of the
a bill
House on the state of the Union for the consideration of H. It. 6976,
better
to protect the currency of the United States, to provide for the
use of the monetary gold stock of the United States, and for other purposes, and all points of order against said bill or any provisions contained
therein are hereby waived. After general debate, which shall be confined
to the bill and shall continue not to exceed three hours, to be equally
divided and controlled by the Chairman and ranking minority member of
the Committee on Coinage, Weights and Measures,- the bill shall be read
for amendment under the five-minute rule. At the conclusion of the
reading of the bill for amendment the Committee shall rise and report
the bill to the House with such amendments as may have been adopted,
and the previous question shall be considered as ordered on the bill and
the amendments thereto to final passage without intervening motion,
except one motion to recommit.
Further below we:refer to amendments inserted in the bill
by the Senate Committee on Banking and Currency, one
of which would vest control of the Stabilization Fund (to be
established under the bill) in a board of five, instead of, as
in the House bill, in the Secretary of the Treasury. This
Committee amendment was rejected by the Senate on Jan.
26 by a votelof154 to 36. The Senate likewise eliminated
from the bill yesterday (Jan. 26) another Committee amendment to limit the operations of the fund solely to stabilization of the currency. The vote on this amendment was 52
to 32. Associated Press advices from Washington last night
also stated:
The action came suddenly, after Senator Reed, Republican, of Pennsylvania, and Senator Robinson, Democrat, of Arkansas, had clashed on
the wisdom of the measure as a whole and Senator Borah, Republican, of
Idaho, had advocated the remonetization of silver.
The vote whereby the bill was passed in the House was
taken after a motion to recommit had been defeated without
a roll call. All amendments proposed by critics of the bill
were voted down as the House bowed to the will of the
President, said the Washington account, Jan. 20, to the
New York "Herald Tribune," which noted:
Not only is the Government given power to commandeer all monetary
gold from the Reserve banks and to devalue between 50 cents and 60 cents,
but the huge $2,000,000,000 stabilization fund, as proposed, is provided
for and put into the control of one man, the Secretary of the Treasury.
The House also voted into the bill an Administration amendment which
allows the President and the Secretary of the Treasury to keep secret the
operations of this vast fund for the next three years, or until after the
next Presidential campaign.
In the Washington advices, Jan. 19, to the New York
"Times" it was stated:
An amendment which would provide a report on the operation of the
stabilization fund to Congress was written in by the House Committee
to-day with the approval of the President and Secretary of the Treasury
Morgentimu. As the amendment was first drawn by Mr. Morgenthau, it
provided that "an annual audit of such fund shall be made and a report
thereof submitted to the President, and a general report on the operation
of the fund shall be =de by the President to the Congress within a period
of three years from the date of enactment of this Act."
The Coinage Committee, however, provided that the report should be
made "within a period beginning 90 days before and ending 90 days after
the expiration of three years from the date of enactment of this Act."
In its account from Washington, Jan. 18, the same paper
carried the following:
Secretary 3forgenthau of the Treasury sent to the Capitol a series of
amendments to existing law which would give him wider latitude in
financing and refunding operations so that banks and insurance companies would be permitted to take up the major share of Government issues.
He asked that they be attached as a rider to the monetary measure.
Enlarging upon the above, the Washington correspondent,
Jan. 18, of the New York "Journal of Commerce" said:
The Treasury Department to-day sent to Senator Fletcher recommendations for additions to the bill which would permit a $2,500,000,000 increase in the allowable issuance of Treasury notes; the making of all
Governments saleable on a discount basis, and the issuance of gold certificates against all Treasury gold not used as reserves.
As was indicated in these columns last week (page 422),
wherein we gave the text of the bill to carry Out the President's plan to nationalize all American-owned gold, the proposed legislation would revalue the dollar at 50 to 60 cents,
Jan. 27 1934
Financial Chronicle
on the basis of its present gold content. The vote, 360 to 40,
which marked the adoption of the bill by the House on
Jan. 20, was cast by 68 Republicans, 287 Democrats and five
Farmer-Laborites, who voted for the passage of the bill,
their
and 38 Republicans and two Democrats who registered
opposition. The two opposing Democrats were Representa
Texas.
of
Terrell
and
Missouri
tives Claiborne of
Detailing the action of the House, on Jan. 20, the New
n
York "Times" had the following to say in its Washingto
advices that day:
Amendments Are Voted Down.
other than
The bill went through the House without a single amendment
with Adthose offered by the Coinage, Weights and Measures Committee
in
President
ministration sanction. Proposals to limit the power of the
Treasury over
revaluation, to curb the authority of the Secretary of the
of gold for internathe stabilization fund, and to restrict the shipment
or by decisive majorities.
tional redistribution all went down in roars of noes
Somers and
Democratic handlers of the bill, including Representatives
little answer to the
O'Connor of New York and Cochran of Missouri, made
of the measure. Their one
cry for amendments or even for explanations
is," and that was answer
answer was, "the President wants it passed as it
House. . . .
enough for the overwhelmingly Democratic
this afternoon the power
In the seven-and-a-half-hour grind in the House
bill to the Secretary of the
over the stabilization fund allocated by the
Treasury was the thief point of contention.
McGugin, Republican of Kansas,
A proposal made by Representative
of five, of which the Presiboard
a
of
control
the
under
fund
the
to put
Governor of the Federal Reserve
dent, the Secretary of the Treasury and the
168 to 73. Mr. McGugin
Board would be members, was overwhelmed,
could not even get a roll-call on it.
on an amendment offered
The closest call for the Administration came
prohibit the Secretary
by Representative Patman, Democrat of Texas, to
Bank of International
of the Treasury from exporting any'gold to the
was adopted 123
Settlements. On the first standing vote the amendment
to 120.
while the aye votes were
Mr. Somers immediately demanded tellers, and
Cochran and party
passing through the gate to be counted, Representative cloak rooms, the
the
whips called enough members from their offices,
170 to 133.
restaurant and other places to defeat the amendment,
control. With
From this point on the Administration was in complete
they defeated a series
an unexpressed slogan of "stand by the President,"
stabilize the dollar at
of amendments by Mr. McGugin proposing to
amendments aimed
66 2/3c., 60c., and between 50c. and 66 2/30. Several
on points of order.
at taxing now tax-exempt securities were ruled out
hours while the amendThe House was in an uproar for more than two
Bankhead, who prements were being offered. Efforts of Representative
as members sought either
sided, to maintain order were practically in vain
views on the monetary
to get information on the bill or to air their
situation.
Maine, made a pointed
At the close Representative Beedy, Republican of
an inability to answer
attack on Mr. Somers, declaring he had confessed
that anyone
fundamental questions about the bill. Mr. Beedy declared
afternoon "has
who could vote for the measure after the proceedings this
an elastic conscience and an India-rubber brain."
Little Debate on the Buie.
unanimously, a special
Debate began after the House adopted, almost
little opporule limiting discussion to three hours. Republicans offered
open" to amendments
sition to the rule. They conceded that it was "wide
too, that some of their
to the measure at issue, and their leaders knew,
followers favored both the rule and the bill.
call during debate on
Democratic leaders sought to throw out a party
Perkins, Republican of
the rule, but this was answered by Representative
a party issue.
New Jersey, with a denial that the money bill was
this bill," Mr. Perkins declared, "I
"I sin for this rule, and I am for
our currency. I am
of
stabilization
am for it because it is a step toward
duly constituted Government
for it because it places in the hands of our
of this country. I am for it
the absolute control of the monetary base
at this time than to try to
because I had much rather follow the President
follow all the conflicting schools of monetary thought."
Representative Byrne, the Democratic leader, had already called on his
followers to support the President. Ile asked that they help repair the
wreckage of former Republican rule and restore to "all the people," through
their Government, control over their own money.
Mr. Byrne was seconded in his party appeal by Representatives Rankin
of Mississippi and O'Connor of New York, who chided Republicans for
alleged inaction at the outset of the depression.
Debate on the bill proper was started by Representative Dies, Democrat
of Texas, member of the Coinage, Weights and Measures Committee, who
made a plea for adoption of the measure without amendment. He spoke
particularly of the section setting up the $2,000,000,000 stabilization fund,
explaining how the British fund worked to the benefit of the pound at the
expense, he said, of the dollar. Ile asked that the Secretary of the Treasury
be implemented with a similar weapon to defend our currency.
MeGugin Assails the Bill.
Representative McOugin attacked the bill. The Administration was
taking advantage of the agitation for stabilization, he declared, to jam
through Congress a bill whose "fundamental purpose" was to place a
$2,000,000,000 fund in the hands of the Secretary of the Treasury with
carte blandte authority for dealing in foreign exchange and even Federal
securities.
Mr. McGugin said "the man does not live, never has lived and never
will live" who had the ability to handle single-handed so large a fund in
stabilizing the currency of the United States against the assaults of foreign
competitors.
Representative Swank, Democrat of Oklahoma, asked the Republicans
why they had raised no protest to a one-man domination of money and
fiscal affairs of the country when Andrew W. Mellon was "in charge of
the Government."
Representative McFadden, the Pennsylvania Republican who tried to
impeach President Hoover in the last Congress, loosed an attack upon
Secretary 3lorgenthau. He urged the House to consider seriously the
probable consequences of placing the stabilization fund In the hands of a
man who, he charged, "by family, by tradition, by neighbors and friends
is tied in with the international Jewish financial group who are connected
so closely with the financial officials of the British Government."
Volume 138
Financial Chrcnicle
609
The restricting amendments were offered by Senator Glass, who early
announced his opposition to the whole monetary policy. His first amendS. proposed
ment, which was adopted by the committee on a vote of 12 to
the board offive members, to be composed of the Secretary of the Treasury.
the Controller of the Currency, the Governor of the Federal Reserve Board
and two members to be appointed by the President.
Senator Glass's next amendment, which was adopted by the same vote.
would limit to three years the life of the stabilization fund—two years by
the statute, with one additional year optional on Presidential order.
Vote to Report Bill 15 to 2.
After the Committee adopted this amendment and another by Senator
three
Bulkley providing that devaluation must take place, if at all, within
reporting the
Years. Senator Glass voted "aye" in the 15-to-2 division for
measure.
Senator Gore, also an opponent of the bill from the outset. answered
"present" on the final roll call. The only negative votes were cast by
Senators Goldsborough of Maryland and Townsend of Delaware. Republicans.
Those voting "aye" besides Senator Glass, were Senators Wagner,
Barkley, Bulkley, Costigan, Reynolds, Burnes, Bankhead, McAdoo,
RepubliAdams, Fletcher, Democrats; Norbeck, Walcott, Steiwer, Kean,
cans.
Efforts of Senator McAdoo to amend the bill to permit the Treasury to
"take the profits" from gold after devaluation but specifying that title to
the gold stocks should remain with the Federal Reserve System were voted
down, 11 to 9. A proposal of Senator Gore to eliminate the gold seizure
clause entirely failed without even a record vote.
The Committee accepted an amendment offered by Senator Fletcher
eliminating the requirement for a report by the Stabilization Fund Authority on its operations. The House voted such a provision when It
Must "Answer to Wage-Earners."
passed the bill on Saturday, and language of a similar nature was in the
Another New York Republican, Representative Fish, warned the House
measure as originally sent to the Capitol from the White House.
that the popularity of dollar devaluation might be short lived.
Democrats Support Amendments.
"Then you will have to answer to the wage-earners and consumers of
The amendments for a time limit on the life of and for a division of
this country for the losses and hardships you have caused them," he
control over the Stabilization fund were voted when a group of Demoexclaimed.
crats Joined a practically solid Republican group. One lone Republican.
Representative Hollister of Ohio, also a Republican, said enactment of
Senator Norbeck of South Dakota, had sent his proxy to Senator Fletcher
the bill would "emasculate" the Federal Reserve System and transfer
to be voted down the line for the President's program, and so was found
monetary and banking authority to the Secretary of the Treasury.
always on the administration side.
Representative Burke, Democrat of Nebraska, said by way of reply
On the two Glass amendments, proposing the board of five and setting
that the very reason he favored the bill was that it returned control of
time limit on operations of the fund, the vote was as follows in both
the
Carter
Neof
Representative
money to the Government. His colleague,
cases:
braska, said that the only question involved was whether Congress had
For the Amendment—Glass, Bulkley, Gore, McAdoo and Adams. Democonfidence in President Roosevelt's ability to direct the stabilization
crats; Goldsborough, Townsend, Walcott, Carey, Couzens, Steiwer and
operations.
Kean, Republicans.
Representative Beedy was not going to vote for the bill because he did
Against the Amendment—Wagner,Barkley, Costigan, Reynolds, Burnes.
not know what was in it. The one thing he could find, he said, was the
Bankhead and Fletcher, Democrats; Norbeck, Republican.
a
Beard,
repreclear purpose to take powers from the Federal Reserve
The vote on Senator Bulkley's amendment, adopted 11 to 8, to permit
sentative body, and place them in the hands of the Secretary of the
a maximum of three years for the act of devaluation, follows:
Treasury.
For the Amendment—Glass,Bulkley, Gore, McAdoo and Adams, DemoRepresentative Somers went to the defense of Secretary Morgenthau in
crats; Goldsborough, Townsend, Walcott, Carey, Steiwer and Kean,
the closing speech of debate. Ile deplored that Mr. McFadden had referred
Republicans.
to Mr. Morgenthau's religion.
Against the Amendment—Wagner,Barkley, Costigan, Reynolds,Burnes.
"I am sorry the gentleman made this slip," he said, "but if the Jews
Bankhead and Fletcher. Democrats; Norbeck, Republican.
produce such men as our Secretary of the Treasury, God give us more
Debate on the bill in the Senate was brought under way
Jews."
Mr. Somers said that the bill was not a monetary measure but a "polition Jan. 24, and reference thereto is made in another item
cal economy" measure.
in this issue of our paper. It was indicated in the "Times"
"This is the declaration of financial independence of the United States,"
dispatch Jan. 24 that Democratic leaders in the Senate prohe said. Gold was a necessity, just as were bread, water and air.
posed to resist all changes not wanted by the President, and
"Then why," he asked, "should we leave it in the hands of private
banks and not take it over for the benefit of all the people?"
in furtherance of this to strike out the Committee amendment
"I beg this Congress not to commit so much authority to the Secretary
of the Treasury—authority to deal in Government securities as he may
choose," he said.
Representative Cochran, Desnocrat of Missouri, apparently annoyed by
Mr. McFadden's remarks, replied:
"I don't think we'll ever see the day when a banking bill is brought on
this floor that the gentleman from Pennsylvania will approve. That is his
record."
Continuing for the Republican opposition, Representative Andrew of
Massachusetts expressed skepticism as to the effect of the measure upon
the recovery program. He objected even more to such hasty consideration
of so important a measure.
As debate continued, the Administration's strength became more and
more apparent. An indication of a breaking up of such opposition as
there was in their own ranks came when Representative Fiesinger of Ohio,
who had opposed the gold devaluation policy in committee, announced that
he would go along with the President and vote for the bill.
Representative Wadsworth, Republican of New York, especially disliked
the stabilization fund and the manner of its set-up. There was an essential
difference, he declared, between the control proposed in this measure and
the control of the British stabilization fund. He explained that the Committee in charge of the British fund was directly responsible to the Ministry, which in turn was responsible directly to Commons and to the
people.
There was no question, he went on, that the Government could take
possession of the Federal Reserve gold, but he raised the question of "just
compensation." He contented, moreover, that the principal of the
Federal Reserve stocks belonged in justice to the banks.
On Jan. 23 the Senate Banking and Currency Committee,
by a vote of 15 to 2, favorably reported the bill with several
amendments, one of which placed a three-year limit on the
duration of the provisions of the bill. From the New York
"Evening Post" we quote the following from -Washington,
Jan. 23:
Insertion of the time limitation feature presaged a bitter fight between
Administration and anti-Administration forces when the bill reaches the
floor of the Senate, probably to-morrow.
Democratic leaders of the Senate predicted that the limitation would be
voted out of the bill unless President Roosevelt indicates his willingness
to accept it.
Board Amenable to President.
Another amendment placing the $2,000,000,000 stabilization fund in the
hands of a board of five members rather than the Secretary of the Treasury
alone was adopted by the Committee.
This change was considered less significant than the time limitation.
The Board would be composed of the Secretary of the Treasury, Comptroller
of the Currency, Governor of the Federal Reserve and two appointees of
the President.
It was pointed out that such a Board would be but little less amenable
to persuasion from the President than the Secretary of the Treasury standing alone.
Several other amendments offered by opponents of the President's monetary policies in the Committee were defeated.
Three-Year Limit at Outside.
Amendments by Senators Glass of Virginia and Bulkley of Ohio restricting the bill's provisions for three years or less were adopted by votes of
12 to 8 and 11 to 8, Democratic money conservatives led by Glass joining
the Republican minority to carry them.
Effect of the two amendments would be to set two years as the time of
the present emergency during which the President could manipulate the
gold content of the dollar within a range of 50 to 80 cents and operate
the stabilization fund.
The President would have power, however, to declare the emergency over
short of the two-year period or to extend it by proclamation one year longer.
His power to fluctuate the gold content of the dollar and to stabilize with
part of the profits of the devaluation would be automatically rescinded in
three years at the outside.
In addition to the extracts above from the "Post" relative
to the Senate Committee's action on Jan. 23, the details of
the votes cast by the Committee on the various amendments
proposed, were given as follows in the Washington account
(Jan. 23) to the "Times:"
vesting control of the Stabilization Fund in a board of five.
At the same time the dispatch added:
amendment for
Senator Wheeler, silver advocate, said he would offer an
gold-purchase prothe buying of silver under a plan similar to the Warren
be continued
gram. Under the Wheeler proposal silver purchases would
of 16 to 1
until 1,000,000,000 ounces have been procured, or until a ratio
between the value of gold and silver has been established.
Another Amendment Opposed.
another amendIn the text of the bill as it came from Committee was
It provides
ment which the administration forces may try to strike out.
stabilizing the
that the stabilization fund be used for the "sole" purpose of
governforeign
exchange value of the dollar "in relation to the currencies of
simply said "for
ments." The text sent to the Capitol from the Treasury
without reference to
the purpose of stabilizing the value of the dollar,"
"sole" use or to the "currencies of foreign governments."
On Jan. 24 an Associated Press account to the "Post"
stated:
that he
President Roosevelt sent word to Congressional leaders to-day
but
was willing to accept a time limitation on his monetary legislation,
stabilurged rejection of the proposal to have a Board administer the huge
ization fund.
The Chief Executive's decision was passed along to his lieutenants on
Capitol Hill as the Senate began consideration of the money bill.
One of the chief objections raised against the monetary bill was that
it was permanent, rather than temporary legislation, and should therefore
receive more thorough consideration.
Republicans Continue Fight.
Republicans, together with some Democrats, were determined, however,
to continue their battle for management of the $2,000,000,000 stabilization
fund by a Board of five rather than the Secretary of the Treasury alone.
The President's views were passed along to Congressional leaders after
a conference at the White House with Senator Robinson, Democratic leader.
Senator Robinson would not discuss his visit, but on leaving the White
House said the Board plan was "obnoxious and impractical."
Expects Time Limit to Pass.
At the Capitol, he said the amendment adopted by the Senate Banking
Committee yesterday to limit the operation of the fund and the President's
power to devalue the dollar to two years, with provision for extending them
to three, would "in all probability be accepted."
Under this amendment the President could declare the emergency period
over before two years, if he desired, and cancel the grant of power, or he
could extend them for the third year.
The other amendment, which the Administration opposes, would have a
Board composed of the Secretary of the Treasury, the Governor of the
Federal Reserve Board, the Comptroller of the Currency and two others
appointed by the Senate run the stabilization fund.
1
610
Financial Chronicle
Explains Amendments.
Administration leaders said they would insist upon the original terms
of the bill, providing the Secretary of the Treasury with sole jurisdiction
over the fund, contending that it can be handled only by a single power,
and that a Board would endanger what was called the fundamental necessity
for secrecy.
Chairman Fletcher explained the Committee amendments to the Senate.
Most of the Senators were in their seats and the galleries were comfortably filled. Senator Fletcher could hardly.be heard in the galleries,
however, and even the Senators strained their ears to catch his words.
Notably missing was Senator Thomas (Dem., Okla.), long an advocate
of dollar devaluation and seizure of Federal Reserve gold. He was ill
at home.
Vandenberg for Conflicts.
Reaching the controversial amendment substituting a Board to administer the stabilization fund, Senator Fletcher said that should be rejected.
"There ought to be one unified source of control," he contended, adding
that experience had shown Boards often developed "conflicts of views"
which led to delays.
Single control, he said, would make for expeditious administration and
protect the "confidential" fund.
Senator Vandenberg (Rep., Mich.) suggested it "might be useful" if there
were occasional conflicts in administration of the fund, to show its operations were being given close consideration.
No Contest on Time Limit.
Senator Fletcher opposed an amendment by the Committee to confine
operations of the fund to the "sole" purpose of stabilizing the value of the
dollar. He said he did not feel the word "sole" was necessary.
Voicing the Administration attitude on the time limitation, Senator
Fletcher told the Senate it was "not a vital amendment," adding that "as
far as I am concerned it may be wise to accept it."
Senator Fletcher added that he would make no "contest" on the time
limitation, either as applied to the stabilization fund or the President's
power to devalue the dollar.
On Jan. 25/attacks on the bill by its opponents precluded
a test on the Committee amendments, the Washington
dispatch (Jan. 25) to the "Times" noting that the attack
was led by Senator Hastings, Republican, of Delaware, and
Senator Austin, Republican, of Vermont. In part the dispatch continued:
The Senate will meet at 11 a. m. to-morrow, an hour ahead of the
scheduled time, in an endeavor to pass the bill to-morrow. Senator Robinson, Democrat, of Arkansas. in suggesting the earlier hour promised that
If the measure is/completediby to-morrow night, an adjournment or recess
would be taken over the week-end, but warned that if the debate continued,
the Senate might sit "until a late hour Saturday."
Senators Borah and Wheeler are expected to get into the thick of the
debate when proposals are offered for outright currency expansion, and for
a section giving silver a greater place in the new monetary program.
Senator Borah was preparing an amendment making it mandatory for
the Secretary of the Tresury to issue currency upon the "profits" to be
derived from revaluation of the dollar, and Senator Wheeler was drawing
a provision for the purchase of a maximum of 1,000,000,000 ounces of silver,
or until a ratio of 16 to 1 has been established between the value of silver
and gold.
Yesterday's action (Jan. 26) on the Committee amendments is noted in a paragraph at the beginning of this item.
Views of Owen D. Young on Administration's Bill
to Revalue Dollar, Create Stabilization Fund
and Provide for Taking Over by Treasury of Gold
Holdings of Federal Reserve System—If Intended
as Emergency Measure Deputy-Chairman of New
York Federal Reserve Bank Would Withhold
Criticism—He Warns, However, Against Destroying
Reserve System by Creating in the Treasury
Another Banking System of Equal or Greater
Power.
The views of Owen D. Young, Deputy Chairman of the
Federal Reserve Bank of New York, on the Administration's
monetary bill, were presented before the Senate Banking
and Currency Committee on Jan. 22, on which date the Committee's hearings on the measure were concluded. In making known his attitude toward certain provisions of the bill—
providing for revaluation of the dollar, the establishment
of a stabilization fund of $2,000,000,000, and the taking over
by the Treasury of the gold holdings of the Federal Reserve
System—Mr. Young said: "If it [the bill] be only temporary, to meet an emergency, my attitude of approach would
be not to criticize, but to try to support whatever the President and his associates feel they need to rescue us from this
depression as an emergency program." "If, however," Mr.
Young continued, "this is intended to affect our permanent
monetary situation, then it needs muCh more careful consideration,and I should be sorry to see any legislation passed
of that significance under the pressure of an emergency
demand." Mr. Young, it was observed by the Washington
correspondent of the New York "Journal of Commerce,"
approved the establishment of a stabilization fund to be
used pending an international arrangement on monetary
problems. The account in the paper quoted went on to say:
However, he added, such funds are operated in secret, and "I believe
they are a menace to business, economic welfare, and if carried far enough
will be a menace to peace."
Operation of the stabilization fund, Mr. Young warned, must be carried
out so as not to conflict with the work of the Federal Reserve Board in
expanding and contracting credit, and he said there is nothing in the bill
to insure that the two were operating in the same direction.
Jan. 27 1934
"Inasmuch as the Treasury will have to use the fund," he declared, "it
should do so only in co-operation with the Reserve Board to insure that the
two are in step."
"When the influence of the credit volume of the country
passes from the Federal Reserve System to the Treasury,"
said Mr. Young, "then the Federal Reserve System is practically abolished. It will remain only, if retained at all, as
an administrative agency of the Treasury." At the conclusion of his testimony Mr. Young said: "I have requested
particularly that we treat the legislation as emergency legislation. I have asked, certainly, that you be careful not to
destroy the Federal Reserve System by creating another
banking institution in the Treasury of equal power or
greater power. A detailed account of Mr. Young's views
as presented to the Committee were contained as follows in,
a Washington dispatch, Jan. 22, to the New York "Times":
The Chairman: Mr. Young, you have examined the bill which is before
this Committee for consideration, including the proposed amendments
thereto. We will be very glad to have your views.
Senator McAdoo: I think, Mr. Chairman, that Mr. Young might state
for the record his connection with the Federal Reserve Bank of New York.
Mr. Young: I think I have served as a director of the Federal Reserve
Bank of New York since 1921. During the first half, I should say, of that
service I was elected as the representative of the large banks, whatever
group that is.
Some time, I should say along in 1926 or 1927, I was asked by the
Federal Reserve Board to resign my place as the director representing large
banks, and accept service on the Federal Reserve Board. That was done,
I think, primarily because Mr. Herbert Case, who was then Chairman of
the Committee, was ill, and the Federal Reserve Board wished one to serve
as Chairman during his illness.
They designated me as Deputy Chairman then, and I have held that
office and that designation since.
Senator McAdoo: You represent, in other words, Mr. Young, the public
Interest on the Board? You are one of the so-called Government directors?
Mr. Young: Yes, Senator.
Would Back Measure If It I. Temporary.
The Chairman: The Committee will be very glad to hear your views on
the bill and on the proposed amendments thereto.
'Mr. Young: Since receiving your message late on Friday evening, Mr.
Chairman, I have devoted two intervening days to a study of the bill to
which you refer.
I am scarcely competent to speak on the definitive provisions of the
bill; the time is too short to study them. I can scarcely claim to be an
expert in any field, Mr. Chairman.
I am neither an economist nor a banker; but the question I asked myself
at once, on reading this bill, was whether it was a temporary measure to
meet an emergency or whether by it we intended basically to change our
whole monetary mechanism—and, perhaps, principles—in this country.
If it be only temporary, to meet an emergency, my attitude of approach
would be not to criticize, but to try to support whatever the President
and his associates feel they need to rescue us from this depression as an
emergency program.
If, however, this is intended to affect our permanent monetary situation,
then it needs much more careful consideration, and I should be sorry to
see any legislation passed of that significance under the pressure of an
emergency demand.
So my first suggestion would be that it is highly important, I think,
to retain this bill throughout as an emergency bill, and then, if we need
modification of our monetary program and mechanism, we ought to take
that up with ample time to give it careful consideration, because, after
all, we spent 'a. great many years, Senator Glass, in getting the Reserve Act.
Would Leave Time Limit to the President.
When passed, we adapted, so far as we could, the best there was in the
whole monetary experiment of the world to our needs. We have had 20
years of experience with the Federal Reserve System.
So I would hope that we would not permanently change that system
without careful consideration and careful study.
To come back to my first point, it is that I hope the legislation contemplated in this bill will be not only considered as emergency legislation but
that it will be designated as such in the bill, and that you will fix a
time at which the powers under it will be terminated.
I realize that there is great difficulty in fixing a specific calendar time,
because we do not know how long the emergency will last.
But it does seem to me that the emergency character of the Act would
be shown and a time limit could be made effective merely by a provision
that the President himself might declare when the emergency was over
and the powers of this Act no longer needed.
That puts the responsibility upon the President, which I am sure would
be soundly and wisely exercised, and it would save the Act from the interpretation of its being permanent legislation in our monetary system, which,
as I say, I think would be undesirable.
As to devaluation, Mr. Chairman, I do not think that I wish to express
any view here as to the percentage of devaluation. I am assuming that
devaluation must take place.
I should prefer not to express a view, because the amount of the devaluation is affected very largely by what other countries may do. I feel great
hesitancy about expressing any views as to percentage, because the President
is faced with the problem of working that our with foreign. countries; and,
even if I had a definite opinion, I would hesitate to express it; and having
none—because one cannot tell how the circumstances will change—I should
prefer not to make any statement regarding it.
Welcomes Definition of Gold Content.
I welcome the step, however, toward a legal definition of the gold content
of the dollar. I think that certainly is extremely desirable and perhaps
certainly is even more important than the content, assuming that tho
content be not too far below the present dollar market. Certainly it is
very desirable and I think it is very necessary to further our economic
recovery.
So far as the profit on the gold is concerned resulting from devaluation,
it seems to me there is no question but what it should go to the Government. I know of nobody else who should receive it. As Professor Rogers
says, it is a thing taken out of thin air by legislation.
Volume 138
611
Financial Chronicle
Senator Barkley: Sort of a fixation of nitrate?
Mr. Young: Yes, I think so; but it does not take so much physical
power.
Senator Kean: Suppose that gold goes back to $20 an ounce—what
would happen then?
Mr. Young: Then the nitrogen will be evaporated. It is proposed to
transfer the title of the Federal Reserve banks in the gold to the Government. I should say that that was quite unnecessary for the purpose of
insuring the Government a profit. The gold could be perfectly well left in
the Federal Reserve banks and credit established in the bank for the
Government to the amount of the profit.
Senator McAdoo: You are speaking now of one-half the gold, of course?
Mr. Young: No; I mean all the gold. The bill provides that the title
to all gold owned by the Federal Reserve banks, if I understand it correctly, shall be transferred to the Treasury.
Senator McAdoo: I wanted to make clear, if I understood you aright,
that your suggestion is, if it is devalued—for instance, 50%—that the
one-half of the gold which would then belong to the Federal Reserve banks
should be left with them, and they should be given credit for the other
half on the books of the Federal Reserve banks?
Would Leave Title in Federal Reserve.
Mr. Young: Yes; the Government might take the other half of the
gold, or it might leave the gold in the Federal Reserve Bank and take
a credit on the books of the bank for its value.
Personally, I should think it would be wiser, even as an emergency
measure, to leave the title to the gold in the Federal Reserve Banks,
subject to the regulations of the Secretary of the Treasury.
It seems to me, in a sensitive time like this, when we are trying to
rebuild confidence, we should try to accumplish our objective with the
least disturbance of confidence possible, and I think there may be some
impairment of confidence in the transfer of the title of the gold to the
Government.
Personally, I am not so much concerned about the transfer as I am
about the character of the gold certificate which this bill contemplates
will be issued to tile Federal Reserve Bank for the gold.
If gold certificates are to be substituted for gold in the Federal Reserve
banks, they should, in my judgment, be redeemable at the option of the
bank. From the standpoint of public confidence it would seem better to
put a restraint on the use of gold by regulation during the emergency
rather than to suggest an additional certificate at the option of the Secretary of the Treasury and thereby suggest that we might have a permanent
currency redeemable in gold only at the option of the Government.
I am opposed, Mr. Chairman, broadly speaking, to an irredeemable currency. I agree that our currency should not be redeemable in gold coin,
but I think it should be ultimately redeemable in bullion. It seems to me
that we should work toward that kind of a currency; and I mean a currency
redeemable in bullion at the option of the holder of the currency, or at
least at the option of the central bank, and not at the option of the
Government.
As to the stabilization fund, I approve the use of so much of the monetary gold as is here proposed for a stabilization fund. Such a fund should
be available for use pending an international arrangement in regard to
currencies and so long thereafter as may be necessary to carry out such
an arrangement.
I should hope and expect, however, that any international arrangement
would contemplate the abolition of stabilization funds in the hands of
political treasuries in all countries. Normal business cannot go on when
exchanges are subject to arbitrary, unknown and uneconomic interference
and interference unknown as to time or the amount of its use.
All equalization funds operate in secret. They must operate in secret.
So I am opposed to them as a permanent part of the monetary system of
this country or any other country. I think they are a menace to business,
to economic welfare, and I think that if they are carried far enough they
would be a menace to peace.
Senator Wagner: If the other countries persist in its (a stabilization
fund's) operation, do you suggest that we should desist anyway?
Mr. Young: No; I am in favor of its maintenance until we get an
arrangement with other countries, and I am saying that as a part of that
arrangement we should insist that they dispose of their stabilization funds
and that we do so.
I would rather say, Mr. Chairman, "a" Secretary of the Treasury,
because I have the highest confidence in "the" Secretary of the Treasury.
I am thinking not of him so much as of that Secretary of the Treasury
unknown to use who has these vast powers.
When the influence of the credit volume of the country passes from the
Federal Reserve System to the Treasury, then the Federal Reserve System
is practically abolished. It will remain only, if retained at all, as an
administrative agency of the Treasury.
That is the reason why I think that you will have to be very careful
with this bill lest you destroy the Federal Reserve System, pethaps unintentionally. Of course, so long as the Federal Reserve System functions
you will have two forces operating in the market.
Senator Barkley: As I see it, this bill does not interfere with the ordinary functions of the Reserve System except to the extent that the
activities of the Treasury might impinge upon the activities of the Reserve
System with reference to the stabilization of foreign exchange. Outside
and beyond that, what is there in this bill that would ultimately work
any change in the functioning, the importance or the relationship of the
Federal Reserve System to the Government?
Mr. Young: I should say that the whole use of the Reserve System lay
in its power to influence, perhaps, rather than to control, the volume of
credit in our monetary situation.
Senator Barkley: To what extent is that influence diminished by this
Act?
Mr. Young: It is diminished because you have established practically
another bank of equal size having the same power to operate in the market,
with no co-ordination between the two.
Senator Barkley: Only to the extent that those operations affect the
stabilization of the dollar in foreign currencies.
Mr. Young: Whatever your objective may be, the result is that you
have two great forces functioning in the credit market. They may offset
each other. They may work accumulatively, and you have provided, so
far as I can see, in this bill no way of insuring that team acting together.
One may go in one direction and the other in another direction.
And if the Federal Reserve—now I will come back to the final point—if
the Federal Reserve, feeling that credit should be contracted due to the
operations of the Treasury, sells its Government bonds in the market in
the effort to secure that contraction, then it has lost the only weapon that
it has to deal with credit volume except the discount rate, which under
such circumstances I should think would be ineffective.
Senator Barkley: lithe Federal Reserve System should embark upon a
policy that would tend to depress the price of Government securities, do
you think that the Government ought not to have any weapon by which it
might maintain the price of its own securities?
Secretary of Treasury In Credit Market.
Mr. Young: The problem before the Reserve banks is to try to adjust
the volume of credit appropriately to the needs of the country and to the
needs of its business. That may result in their buying Governments; it
may result in their selling them. When it buys, it may artificially affect
the price of Governments; when it sells, it may depress the price of Governments. But the Reserve banks should never think what happens to the
price of Governments. Their job is to fix the volume of credit.
That is one reason why it is extremely unfortunate to have the SecretarY
of the Treasury operate in the credit market, because he is interested in
two things; he is interested on the one side in the price of Governments,
and on the other side he is affecting tremendously the volume of credit.
lie would hesitate to contract credit if it depressed the price of Governments, notwithstanding that the interest of the country would require and
ought to have a contraction of the credit.
Senator Glass: Right there, the practical aspect of that is that the
Reserve System is conducted by trained and tested bankers who are in
Intimate relationship with the business of every section of the country?
Mr. Young: Yes.
Senator Glass: Whereas the Treasury is not, excepting your qualification as to the Secretary. There may be a Secretary of the Treasury who
has not any knowledge whatsoever of the credit conditions of this country,
or any capability whatsoever to meet an issue that might arise and which
affects the credit situation of the country.
Mr. Young: That is right, Senator.
Conflict of Treasury with Reserve Board.
Using Gold Profit to Buy Government Obligations.
I see no objection to the use of the gold profit for the purchase of
Government obligations to the extent that it can be wisely and safely done.
It can always be used without risk to our general credit structure for the
purchase of Government obligations held by the Federal Reserve
banks,
because that does not increase the excess reserves in our banking system.
Senator Glass: But you do not anticipate that that will be done,
do you?
Mr. Young: No. I was confining myself only, Senator, to saying
that
It might be done and avoid the risk of increasing our excess reserves.
To the extent which the profit may be used elsewhere, the result will
be
to increase the excess reserves of our banking systm by the amount of
the
profit expended, of course. By it you would cause an expansion of potential
volume in our credit currency, which would not be particularly
dangerous
if the expansion were limited to the three or four billions of profit
on
our monetary gold.
At the moment there is a great desire on the part of all for an
expansion in the use of our currency and credit. That has led many to
think that the enlargement of the volume of currency and credit would
expand its use.
Our experience in the past year does not justify such an
assumption.
The Federal Reserve has increased the excess reserves of the
country to
over nine hundred million dollars, giving a base for eight or nine
billions
of additional credit; but that credit has lain dormant.
Under such circumstances you will say: "Why fear an increase
of
hanks' reserves of three or four billions more?" Hy answer is
that if
there were any way of securing adequate contraction and control
when
such vast funds begin to be used, I would not fear it, but the
difficulty
Is in the control.
Treasury Would Hold Control of Credit.
The Federal Reserve System has something like billions of Governments
now which they could sell in the market and thereby accomplish contraction
of credit which might result from the expenditure of this gold profit; but
after that were done the Reserve System would be without influence to
contract the credit market except through a discount rate, which would
probably be ineffective. Thereafter the only control of credit volume would
be in the hands of the Secretary of the Treasury.
Senator Barkley: Getting back to your suggestion that there might be
a conflict between the Federal Reserve Board and the Treasury operating
under this stabilization fund, can you conceive that so long as the Treasury
is limited to operations that affect the stability of the dollar in foreign
exchange or the credit of the Government as it affects the price of
Government bonds—can you imagine any conflict between the two except
where one was trying to depress and the other to maintain the price of
securities?
Mr. Young: It seems to me, Senator, that the Secretary of the Treasury,
especially under existing conditions, has to be very anxious about the
price of Governments. He ought to be. That is his job. lie would not
necessarily be very little concerned about whether or not the use of the
fund created too much credit in the country, but he might like to see a
considerable boom because it would be easier to finance the problem. The
danger is in its getting away from him.
As a matter of fact, the period of 1928 and 1929 got away from the
Federal Reserve banks because they did not start early enough or pursue
their contractions of credit volume fast enough. You could very well
create a situation here by the operation both of the Federal Reserve banks
and the Treasury by which you would get an entirely uncontrollable situation so far as your credit is concerned.
Question of Effects of Currency Issue.
Senator Barkley: Could not the same thing happen under devaluation,
regardless of who held the gold? For instance, if gold is valued 50%, that
creates twice as many dollars in gold in the Federal Reserve banks, does
it not?
Mr. Young: Yes.
Senator Barkley: And upon the gold basis they could issue twice as
much currency, even more than that, because it only has a 40% coverage;
so they could still permit a condition to exist that would get beyond their
control just as it did in 1929.
Mr. Young: Oh, yes.
Senator Barkley: If they could do it in 1929 with $4,000,000,000, we
know they could do it to even a greater extent in 1936 with $8,000,000,000.
Mr. Young: Yes. That is all the more reason why the Federal Reserve
Bank, as the sole authority, should be in a position to contract and
control that credit.
612
Financial Chronicle
Senator Bankhead: How can the Secretary of the Treasury, under the
stabilization fund, expand credits in this country?
Mr. Young: If he uses the stabilization fund, if he expends the stabilization fund, he will create excess reserves in our banking system, exactly
as if he bought Governments with it.
Senator Bankhead: You mean if he spends it in this country?
Mr. Young: Yes. He sells dollars to buy sterling, if you please, with
which to pay for gold.
Senator Barkley: Are we to assume that any use to which the Treasury
may put this stabilization fund, representing a part of the profits growing
out of devaluation, will increase the reserve credits of the country, but
that if left in the Federal Reserve banks it will not be so used to increase
them?
Mr. Young: Oh, no. I see your difficulty, Senator. Under my view
the profit from the devaluation should go to the Treasury in any event.
Senator Barkley: What would you do with that?
Mr. Young: The question is, Who should be authorized to spend that?
It has two purposes: First, the direct effect; here we want to deal in
foreign exchange markets, or want to deal in Government securities. It
has the consequential effect of expanding the reserves of the banks to the
extent to which it is expended.
My suggestion is—and I would urge this strongly—that inasmuch as the
Treasury will have to use, and perhaps ought to use, a large part of that
profit, it should do so only in co-operation with the Federal Reserve Bank;
and I would think that you would have some kind of a Co-ordinating Committee or group so as to insure that the section of the gold profit fund
and the action of the Federal Reserve Bank on the credit market were in
step and not out of step.
Cites Potential Credit Now in Our System.
Senator Bankhead: How much expansion of credit do you think we
really need?
Mr. Young: It is not the expansion of credit that we need. It is the use
of credit which we need. We now have eight or nine billions of inert
potential credit in our banking system, and we cannot get it used.
The Chairman: Proceed with your statement, Mr. Young. I would like
to have you discuss the advantages or the disadvantages of having the
gold vested in the Government, or held by the banks, if there are any
advantages or disadvantages one way or the other.
Mr. Young: I do not think, Mr. Chairman, that I need to say anything
more than I have said. I have requested particularly that we treat the
legislation as emergency legislation. I have asked, certainly, that you be
careful not to destroy the Federal Reserve System by creating another
banking institution in the Treasury of equal power or greater power.
Senator Goldsborough: Personally, I want to thank you for your very
enlightening and understandable statement, Mr. Young. I think even the
man on the street will be able to comprehend it.
Mr. Young: I want to say that I have to make it that way, because I
cannot understand any other.
House Committee Hearing on Stabilization of Dollar
on Metallic Basis—Prof. Sprague Criticizes President Roosevelt's Plan to Revalue Dollar.
Before the House Committee on Coinage, Weights and
Measures, Professor O. W. M. Sprague stated, on Jan. 15,
that the President's proposed revaluation of the dollar could
have a "desirable" permanent effect only if it were coupled
with a clear understanding that there would be no more
monetary "experiments." The hearing, to consider the advisability of "stabilizing the dollar on a metallic basis," was
held at the instance of the Chairman of the Committee, Representative Somers (Democrat, New York). According to
the account from Washington, Jan. 15, to the New York
"Times," Professor Sprague declared that the world situation did not now afford a possibility of stabilization. From
the same dispatch we quote:
Dr. Sprague's criticism, which was given while the President's message
was being read before the Senate, set forth these three contentions:
1. That there must be a "tapering off" of the public works and other
special programs if they are financed by recaptured profits on Federal
Reserve gold, or in 1936 we shall be in the same plight as after the war.
2. That devaluation does not provide for an "equilibrium dollar" based
on a national parity with other moneys, and is therefore likely to have a
"kick-back" on the export market due to a raising of tariff barriers
against us.
3. That devaluation will provide no increase in international purchasing
power. This, according to Professor Sprague, is only possible under the
devaluation system by governmental distribution "through the windfall
policy."
Professor Sprague thought that devaluation would be extremely
difficult,
and held that no country had ever devalued its currency under circumstances
like those obtaining now in the United States.
"There have been cases of revaluation or devaluation," said
Professor
Sprague, "but all of them in recognition of existing conditions."
He explained that every other country had had to devalue to get more
gold, and that France, for instance, had devalued not to bring about an
increase in prices but to maintain a level then existing.
Revaluation in our case presented a converse problem; the level of prices
here as compared with the level elsewhere did not, he said, support
the
Idea of revaluation.
"The most difficult problem in the world to-day," he held, "is to
arrange
an appropriate value for currency." He advocated a policy of "trial
and
error" in the different countries to establish proper parity, and
contended
that devaluation without consideration of the dollar parity with
regard
to the other currencies was a great mistake.
The need now was to get capital and provide a situation in
which the
Industries wanted it. He feared that the PNVA would not "get
us anywhere"; he held "we must get something permanent."
He agreed that "this country could go very far over a period of
years"
in increasing its debts, and pointed out that the British debt was
about
$75,000,000,000, although the population was only a third of ours.
"Of course, Great Britain's local debts are less," lie remarked, "but I'd
say over the years the tax-paying possibilities of this country permit making
the United States debt greater than it now is."
fan. 27 1934
Noting that, as the first witness at the proposed series of
hearings before the Committee, Dr. Sprague (Harvard professor, former economic adviser to the Bank of England,
who recently retired from a similar post in the United States
Treasury), warned against too much reliance on the $3,000,000,000 or more Government "profit" to be derived from
dollar devaluation, the Washington advices, Jan. 15, to the
New York "Herald Tribune" continued in part:
It constituted, he held, a direct threat to the Federal credit, because it
embraced only a portion of the funds necessary for recovery spending . . .
All in all, Dr. Sprague's testimony left the members of the Committee
with a desire to hear a greater elaboration of his views, and Representative
Andrew L. Somers, Democrat, of New York, Chairman of the Committee,
announced that he would be recalled at his convenience some future date
before the hearings are concluded. . . .
In answer to a direct question by Representative Somers on the advisability of reducing the gold content of the dollar, Dr. Sprague divided his
statement under three heads:
First, the immediate profit coming to the Government; second, the effect
of revaluation on export trade, and, third, its effect on domestic business.
"If the revaluation," he continued, "is to be one of a series of experiments, then I think general confidence will be weakened, and confidence in
the credit of the Government will be so weakened as to make it more
difficult to float the $2,000,000,000 or $3,000,000,000 needed for recovery
over and beyond the windfall profit of the Government from the devaluation, than it would be for the Government to borrow the entire amount
and retain complete confidence in the monetary affairs of the Governnrent."
Says Experiment'Hurts Credit.
The witness indicated that the gold buying plan of Dr. George Warren
already had weakened the market for Government securities. Recalling
that the August issue of 334% eight-year bonds had found a ready market
and had proved there was wide market for Government obligations, Dr.
Sprague said:
"In October the Treasury called for conversion of the VA Liberty bonds.
For two weeks the response was very satisfactory, and then the gold buying
plan was announced. Conversion virtually ceased and the Government will
have considerable refunding to do in April. I believe the entire amount
could have been converted if it had not been for the gold buying policy."
He insisted that revaluation or any other monetary move cannot stand
alone as an approach to recovery. Other factors, such as the absorption of
the idle into normal employment, he saw as equally, or perhaps more,
Important. The effectiveness of the Administration's program, he declared,
depends on what it intends to accomplish by revaluing the dollar.
Will Industry Carry On?
"If in revaluing we expect to set in motion forces which will bring about
an upward price movement," he stated, "It may be a good move. But no
one policy, monetary or non-monetary, is sufficient to meet the situation.
The emphasis on this monetary move in the last few months has tended to
obscure the need for other efforts.
"Of course, if the Government spends enough money, it can employ all
the idle labor of the country and bring about a rise in prices just as it did
in war times. But after the war we were concerned about how private
industry could absorb the workers. The same problem will present itself
In 1935-1936—will the expenditure be tapered off and will the workers
and the materials be absorbed in private industry?"
Reduction of the dollar at the present time and as proposed, Dr. Sprague
told the committeemen, was not apparently directed at establishment of
an "equilibrium," one with a value in line with world prices. For that
reason he feared foreign nations would be constrained to embark on "protective steps." such as retaliation against the United States in the form
of rigid quotas.
Not an "Equilibrium Dollar."
"The revaluation contemplated at this time is disturbing," he added,
"because prices in the United States are not so far out of line with world
prices. No one can dispute the fact that a 60-cent dollar will not be an
equilibrium dollar."
Proceeding then to the discussion of the immediate effects of revalua•
tion in this country, he denied that revaluation in itself automatically will
boost prices or purchasing power.
"The third possible effect of revaluation involves the great
mass of
activities in this country. The effect on manufactured and agricultural
products," he said.
"The direct effect must be abnormal. You and I do not have
more
money, our bank balance is not increased, there is no increase in pur•
chasing power, except in the purchasing power of the Government.
The
only effect on prices will be an indirect influence on the general
situation,
that is, if revaluation results in a scramble for currency, credit
and commodities."
He acknowledged that the policy may create confidence "if the
business
community believes that revaluation is to be definite and
is assured
instruction to be followed by further measures of the like sort
or by an
increase in the volume of the currency."
"No monetary system, however," he added, "yields stability
unless you
have a readiness to make adjustments in business and
investments. The
monetary base is only one of many factors.
"If a definite stand is taken by the Government that in no
will it resort to repetition of the operation or other measurescircumstances
of monetary
manipulation—then confidence may be restored to business.
But if -the
operation is regarded as an experiment, we will have no such
reaction."
Hearing Before Senate Banking Committee on
Administration's Bill to Revalue Dollar—Statemen
t by
Professor Rogers of Yale Defending Gold Measure—
Cites Credit Expansion in New Policy,
Prefessor James Harvey Rogers of Yale, who with Professor Warren of Cornell, assisted in the drafting of
President
Roosevelt's bill to revalue the dollar and to enable the
Treasury to appropriate the gold holdings of the Federal
Reserve System, was one of those who testified on Jan. 22
before the Senate Banking and Currency Committee on the
bill. Elsewhere we refer to the testimony on that day,
Volume 138
Financial Chronicle
which brought the hearings to a close. Below we give Professor Rogers's statement:
Some economic aspects of the President's money policy:
Besides increasing the world's monetary gold stock, raising the price
of gold exerts two major influences:
1. It depresses the dollar in the foreign exchange markets of the world.
2. It creates a profit, the utilization of which constitutes a direct inflationary influence of first magnitude.
To date, the stimulus received from the recent money policy has sprung
largely from the first of these influences; and, as was anticipated, the
resulting price rises appeared first among the basic raw materials with
international markets. Only gradually are these rises spreading to other
parts of our domestic price structure.
Gold Profit Appears "Out of Thin Air."
From the second' of these influences—utilization of gold profit—the
stimulus is still held in reserve. From it pinch is to be anticipated, once
the profit is realized through the determination of at least the minimum
limit of devaluation, and is used.
Specifically, its action is as follows: Literally out of thin air does such
a profit appear. Suddenly the Government finds itself in the possession
of entirely new funds which have come from no one and have to be returned
to no one. Hence, their expenditure, just as that of newly created greenbacks, is in the first instance purely inflationary. In other words, entirely
new purchasing power is added to that already in existence, and is pitted
against existing supplies of commodities and securities.
Secondary Inflationary Effect Far Reaching.
However, the secondary inflationary effect of the use of such funds,
because potentially much larger, is correspondly more far-reaching. Once
paid out, these new funds, whatever their form—whether new notes, gold
certificates or simply a Government deposit in the Federal Reserve Banks—
flow to the reserves of the commerical banks. Here they provide the
base for a loan and deposit expansion of four to ten times their own magnitude. In a word, they swell the lending capacity of our banking system
just as would a like expansion of Fderal Reserve credit.
One major difference, however, making such funds more effective than
Federal Reserve "open-market" purchases, is of prime importance. When
a Federal Reserve bank buys bills or securities on the "open market," now
funds to the amount of the purchase are thus added to the reserves of the
commercial banks. By selling the same amount of securities, however,
such new funds can at any time be immediately withdrawn.
When, on the other hand, the expansion of member bank reserves result
from the utilization of the gold profit, there is no corresponding accumulation of bills or of securities which the Federal Reserve banks may at any
time sell. Only, therefore, to the extent of their earlier accumulations of
such "earning assets," can our central banking institutions counteract
the inflationary effect of the new excess reserves thus created from the
gold profit.
Inflationary Influence Uncounteractable by Federal Reserve Action.
At the present time, the total "earnings assets" of the Federal Reserve
Banks amount to approximately $2,500,000,000. While, theoretically,
all of these might be disposed of in order to withdraw excess reserves from
the banks, practically only about $2,000,000,000 could bean used. Hence.
of the gold profit, the use in excess of $2,000,000.000 would provide an inflationary influence uncounteractable by Federal Reserve action.
The significance of such an uncounteractable inflationary influence is
apparently very great indeed. Suppose—to take an extreme case—that
$3,000 millions of gold profit were paid out and thus flowed to the excess
reserves of the banks. To the already existing $750 millions of these excess
reserves—plus those derived from probable gold inflows—would be added
$3,000 millions more. Of the minimum total, $3,750 millions only $2,000
could be counteracted by Federal Reserve action.
The remaining 31.750 millions—providing the non-withdrawable base
for a loan and deposit expansion of at least $7,000 millions, and more likely
of $17.500 millions—would give to the well informed almost complete assurance of early incontrollable credit expansion and hence of a great and
continued price rise over a period of months. Such an incentive to immediate buying could hardly be resisted. The resultant new purchases, when
added to those already currently stimulated by large and growing expenditures for "public and civil works," could not help but give a further proportionate boost to business, as well as to prices.
Evidently, therefore, the extent of the gold profit and its utilization
should be determined according to the amount ofsuch uncontrolled inflation
desired.
One further difference between the results to be anticipated from the
two major economic influences of the gold policy is of great importance.
While depressing the dollar exchange rates has its chief effect on the prices
of international products, the expenditure of the gold profit acts primarily
on domestic business and profits. Ideally, therefore, the time and the extent of the use of each should be largely influenced by which impact is
desired.
As an economic measure, the bill before you provides, among other
things:
1. A low gold value of the dollar, once devaluation is accomplished.
2. Increased definiteness as to the range of fluctuations in the gold
value of the devalued dollar.
3. A large gold profit, with potential inflationary influence, once devaluation is accomplished.
4. Ample control over the use of this profit,so that any resulting inflation
can be restricted.
Debate in Senate on Administration's Bill to Revalue
Dollar—Senator Glass Protests Against Provision
Enabling Government to Appropriate Federal Reserve System's Gold—Senator Fletcher Defends
Gold Seizure—Contention of Senator Borah and
Others.
In the Senate on Jan. 24, when the Administration's bill
to revalue the dollar was- taken up for debate, Senator Glass
was one of those who defended the Federal Reserve System,
and protested against the proposal to transfer the gold
holdings of the Reserve System to the Treasury. While
Senators were questioning the effect of the legislation upon
the Federal Reserve System, President Roosevelt at a White
House press conference gave assurances, it was noted in a
Washington dispatch Jan. 24 to the New York "Times,"
that his program contemplated no injury to this part of the
banking and currency machinery of the country. In answer
613
to questions, he stated emphatically that his policy would
not undermine the Reserve System, nor did it contemplate
a central banking organization under the Secretary of the
Treasury.
Regarding the Senate debate on Jan. 24, the dispatch in
part also said:
Glass Denounces the Measure.
No assurance of any kind could offset the dislike which Senator Glass
expressed for the bill. The devaluation clauses were characterized as an
"invalid and indecent process" by which the Government would continue
the "lie" already uttered on the face of its currency when it said a particular
Piece of paper money was "redeemable." Moreover, uncontrollable credit
expansion might result from the bill, he continued.
Senator Borah for Currency Expansion.
Senator Borah, on the other hand, called for more outright currency
expansion provisions. He was contemplating to-night an amendment to
force the Secretary of the Treasury to issue new currency on the basis
of the gold "profits" derived from devaluation. . . .
On motion of Senator Fletcher, Chairman of the Banking and Currency
Committee, the Senate, without preliminaries or initial speeches of any
length, plunged into the heart of the discussion of the Monetary Bill.
Senator Fletcher opposed the five-man stabilization fund board as likely
to cause friction between the Federal Reserve Board and the Secretary
of the Treasury.
Measure of Inflation Argued.
Senator Borah, turning to Senator Glass, asked:
"Does the Senator regard this as an inflationary measure?"
"Well, in a large sense, it is," was the reply. "Even the President's
spokesman, Prof. James Harvey Rogers, said we might have $17,000.000.000 inflation under it. Mr. Owen D. Young said it might be 30 to
40 billions.
Senator Barkley intervened:
"Mr. Young was talking of credit expansion, which is quite different.
I do not think it will give place to currency inflation. There is nothing
that changes the custom of issuing notes by the Federal Reserve System.
There's merely a slight change in the payment of gold."
The gold backing must be there in any case, so it made no difference, in
his opinion.
Asked by Senator Borah to define the objects of the bill, Senator Barkley
replied:
"One object is to put all title to the gold of the United States in the
Treasury of the United States. The time has come when the world's
supply of gold is becoming scarce and we must guard what we have."
Senator Borah, favoring devaluation if it brought a rise in prices, commented:
"Dr. Rogers goes the furthest in that claim, but even his statement
makes it pure speculation as to whether it does."
As to Financial Authorities.
Senator Bulkley said that Professor George F. Warren had demonstrated
an actual rise in commodity prices under gold operations so fax, but Senator
Borah denied that prices had risen, contending:
"The only way to raise prices is to put more money in circulation, and
this will raise the prices of commodities immediately."
"If the dollar is cut to 60% there will be 40% of gold free," said Senator
Connally. "What is to hinder using that gold to increase the outstanding
currency?"
Immediately financial authorities were quoted as to this and that, whereupon Senator Fletcher arose in indignation.
"The financiers and bankers brought us to where we are to-day," he said.
"I don't put much credit in these financiers and bankers. The Senator
will have to follow his own conscience."
"Are we going to do the same thing again?" asked Senator Borah.
"It is important to arrive at a situation of stability," Senator Barkley
observed. "The President said he would raise price levels."
Senator Glass interrupted with the remark that Walter'W. Stewart,
monetary expert, had said the bill would not bring stabilization but would
cause retaliation and economic warfare.
"One of the benefits of having the Treasury take over gold is that the
American people will know their gold is in control of the United States
Government," said Senator Barkley.
Glass Defends Reserve System—Sees Irredeemable Currency.
Senator Glass plunged into a heated defense of the Federal Reserve
System. The Government, he asserted, is robbing the System of its gold
and substituting an irredeemable currency that will undermine the confidence of the country and the world in United States money.
"The Senator from Kentucky [Mr. Barkley] has an imagination," the
Virginian went on, "when he says the people will have more confidence in
an irredeemable than a redeemable currency.
"There is no earthly mistake about the fact that this bill provides an
irredeemable currency. The fact of the matter is that every Treasury note
issued and every Federal Reserve note issued has a lie printed on its face
right now—every one of them.
"Would it increase my confidence in the stability of the currency of the
country to find that this bill has stated on its face a lie, that the Government will not do what the note issued says it will do? I should think that
would decrease, if eventually it would not destroy, the confidence of the
plain people. It did so right after the Civil War.
"I am old enough to know when the currency of the United States was
worth 34 cents on the dollar, and that was all it was worth. We did not
call it a dollar; we called the money 'shin plasters,' and it is my considered
Judgment that if we proceed with many more of these vagaries and these
experiments, the money of the American people in their pockets, their
currency will be worth about what the currency was worth in the post
Civil War period when the Government was issuing currency.
Assails Gold Operations.
"I shall not discuss other prearranged and predestined aspects of the
case. I know that the gold dollar, by an utterly invalid and illegal process,
for which no human being can find a rational excuse or legal justification,
has been devalued abroad, and I know perfectly well that it is going to.be
devalued at home. and I am not going to waste my time and strength in
protesting against it.
"Nor am I going to waste any time in protesting any further against
the appropriation by the Government of nearly $4,000,000,000 of gold.
not one dollar of which it ever lifted its finger to honestly acquire, not a
dollar of it. Every dollar of it was acquired by the banking skill and the
acumen of 16,000 banks throughout this country in their daily, current
transactions with their patrons, every dollar of it.
"Some Senators speak of a Federal Reserve Bank as if it were a moneymaking institution for selfish purposes. It is not that at all. A Federal
614
Financial Chronicle
Reserve Bank is an institution designed to respond to the current requirements of commerce and industry and agriculture. That is all it is. If
its reserve holdings to-day were double what they are it would be of no
selfish advantage to any group of persons in the world.
"It would simply mean that these Federal Reserve banks were doubly
equipped to respond to the requirements of commerce, industry and agriculture and, as a corollary of that, the member banks could more readily
and generously get accommodations at the Federal Reserve banks.
"I want the miscalled 'profit' as well as the gold principal in the hands
of the Federal Reserve banks. Why? Because it would twice over again
enable the Federal Reserve banks—if we are going into this devaluation
business—to more readily and at a lower interest charge respond to the
requirements of business."
Glass Cites British Method.
Senator Glass turned to the question of vesting authority over the
stabilization fund in a board rather than in the Secretary of the Treasury.
He asserted that the British equalization fund was administered by a board
of three experts in foreign exchange.
"And nobody ever ventured to suggest that that board of three persons
might be called a town meeting," he continued.
"Our Secretary of the Treasury is a most estimable young gentleman.
worthy, patient, amiable, lovable—without a day's experience as a banker,
and so far as I have been able to ascertain, without any knowledge of
foreign exchange. To put activities of this tremendous importance exclusively in the hands of one man I think, and the Committee thought,
was a mistake."
The Senator recalled an official statement in the House of COMMOnS
in which it was asserted that the British fund was not used for the purpose
of degrading the pound, but merely to prevent too wide a fluctuation of the
pound. The American fund proposed by the bill, he said, "avowedly"
was to be used for degrading the exchange value of the dollar.
"We are setting up a stabilization fund, as I infer from the whole proceedings of our Committee," the Senator said, "for the purpose of compelling
foreign nations to join with us in the stabilization of foreign exchange.
And the testimony before us of foreign exchange experts of international
reputation was that it would not do that, but quite the contrary: that It
would create friction and defer the stabilization of foreign exchange."
Purposes of the Fund Debated.
Senator King asked whether the fund was not to be used to "beat down"
the value of the dollar abroad.
"The purpose of it is to beat down the American dollar, if the Secretary
of the Treasury in his judgment should think the American dollar ought
to be beaten down," said Senator Glass.
Senator Robinson, the Democratic floor leader. and Senator Glass
argued whether the British stabilization fund had been used for purposes
of economic war. Mr. Glass was unable to answer Mr. Robinson's question
why. if England merely wanted to stabilize, she had set the fund at so high
a figure as $1.750,000,000.
Turning again to the question of seizing the Federal Reserve gold, Senator
Glass continued:
"No other civilized nation on the face of the globe has ever seized the
gold of its central bank. Great Britain has never taken a dollar of the
gold of the Bank of England. France has never taken a dollar of the
gold of the Bank of France. Germany has never taken a dollar of the gold
of the Reichsbank.
"Great Britain did not go off the gold standard until she was depleted
of all her gold. We had 43% of the world's gold when we went off the
who
gold standard. Except Professors Warren and Rogers, no man
that
appeared before our Committee would venture to express the opinion
any
was
there
that
least
at
or
we should have gone off the gold standard,
necessity of our doing so."
Fletcher Defends Gold Seizure.
Senator Fletcher, replying to Senator Glass, contended that the Federal
Reserve System had but little justification in the claim that the Governbill.
ment proposed to take something away from it by the pending
"The Government created the Federal Reserve System," he said "The
owes its
System
The
currency.
issue
Government gave it the authority to
very existence and the basis of all of its profits to the Government. The
any
Government gave it the power to issue money. Could anybody want
more power than that?
its
for
out
always
looked
have
"I am a friend of the Reserve System. I
our economic
welfare, but I cannot admit that it is the sole custodian of
have had
welfare or of our currency powers. The Federal Reserve people
credit at will. But
the power for many years to expand and contract our
of
the
securities
value
when
tell me what did they do with that power in 1929
60 days."
in New York City alone dropped $49,000,000,000 within
ago to-day he
Senator Connally reminded the Senate that just one year
of the gold dollar.
had made a speech in the Senate advocating devaluation
Roosevelt
"I regard this as the greatest measure yet proposed by President
Congress could pass
for the recovery of the nation," he said, adding that
of all
benefit
the
for
use
would
President
the
the bill and rest assured that
the people the powers granted.
Walcott Defends Bill's Purposes.
the bill be passed
Senator Walcott,Republican,of Connecticut,urged that
be mainwithout regard to party lines, but that the restrictive amendments
only that percentage
tained. He advocated handing over to the Treasury
of the gold representing a technical profit.
"The currency
"I'M not against the bill or any part of it," he said.
the President's
situation abroad is so serious that any one who attacks
policy at this time is little short of a traitor.
the brilliant statement of
"I do not attempt to make any comment on
gratified that the Chairman
my friend from Virginia [Senator Glass]. I am
object to the time
of our Committee, Mr. Fletcher, does not seriously
period on the stabilizalimit. The bill as amended provides for a two-year
extend to three years;
tion fund, which the President has the right to
dollar. It seems
secondly, a time limitation as to the'devaluation of the
that this
to me these two limitations are as essential as is the announcement
Is emergency legislation."
stabilization fund
Senator Barkley contended that successful use of the
which it is put into
depends largely on the swiftness and secrecy with
execution.
man is a dangerous
"I still feel putting this money into the hands of one
policy," Senator Walcott replied.
which cause fear there—
He said that France is facing three situations
our devaluation may force
the difficulty of collecting taxes, the fear that
re-armed Germany. With
her to devalue the franc again and the fear of a
the only solution in his
Europe, as he saw it, tottering on the edge of war,
France and the United
opinion is "for a combination between England,
States for stabilization of currency."
nations snatching at
"Then," he said, "we can assure credits to those
each other's throats and avert war."
Jan. 27 1934
Views of H. Parker Willis W. Randolph Burgess, Dr.
Kemmerer, &c., on Administration Bill to Revalue
Dollar at Hearing Before Senate Banking and
Currency Committee.
At the hearing in Washington on Jan. 20 before the
Senate Banking and Currency Committee on the Administration's bill to revalue the dollar, the witnesses included
Prof. E. W. Kemmerer, of Princeton University, who (said
a Washington dispatch Jan. 20 to the New York "Herald
Tribune") was emphatic in his denunciation of many features
of the Administration program; Dr. W. Randolph Burgess,
Deputy Governor of the Federal Reserve Bank of New
York, who sought additional safeguards from the standpoint
of a permanent program;.Dr. H.Parker Willis, of Columbia
University, who described the bill as by all odds the most
important since the Civil War and full of dangerous possibilities, and James P. Warburg, former financial adviser to
the Administration, who expressed disagreement with the
Warren theory of controlling prices through gold manipulation. In another item we give Mr. Warburg's statement
before the Senate Committee.
In the "Herald Tribune" Washington account Jan. 20 it
was stated that Dr. Burgess said that while inflation need
not be feared at the moment it was important to consider
possibilities of an excessive expansion of credit since the
legislation was of a permanent character. "A credit expansion of $27,000,000,000 could be erected on $2,700,000,000
of gold profit and an expansion of $40,000,000,000 on
$4,000,000,000 of gold profit," he said. "If this were
solely an emergency act we would not need to worry."
As to Dr. Willis's views we quote as follows from the
same paper:
Dr. Willis, who was technical adviser to the House Banking and Currency
Committee at the time of the framing of the Federal Reserve Act in 1913
and to the Senate Committee in the framing of the Banking Act of 1933,
said that he never had believed abandonment of the gold standard or
the banking holiday was necessary.
"I also believe there is no need of devaluation of the dollar at present,"
he continued. "I mean that it would be better all around if the dollar were
Permitted to go back to its old level. If left free I think it would go back
to the old value. However. I recognize that certain steps have been taken
which it would be difficult to reverse."
The bill, he contended, basically alters the responsibility of the Federal
Reserve System and the theory of issuance of currency. He said it could
Provide the material for a very great credit and stock market inflation and
that amendments should be inserted to guard against such a contingency.
Further extracts from the same paper follow:
Vanderlip Only Supporter.
Dr. Benjamin M. Anderson Jr., economist of the Chase National Bank,
also testified, warning of consequences of stabilization operations. Thomas
R. Preston. of Chattanooga, Tenn., and W. F. Gephart, of St. Louis,
presented a protest against broad powers on behalf of the board of directors
of the Chamber of Commerce of the United States, and Dr. Robert Eisler,
of Vienna, Austria, offered a monetary plan of his own.
Only one witness, Frank A. Vanderlip, former President of the National
City Bank of New York and associated with the Committee for the Nation,
and theories
appeared in complete sympathy with the fundamental objectives
of the Roosevelt Administration. Even he dissented to the extent of
central
bank
of
-owned
issue. ...
Preferring his own plan for a Government
Kemmerer an Outspoken Critic.
Professor Kemmerer, who told the Committee that he had acted as
adviser to 13 nations in the setting up of banking and currency systems,
was one of the most outspoken critics of the Administration plan.
"I believe that a prompt stabilization on a gold basis is desirable," he
said. "I think the higher rate at which we can stabilize the better because
I believe the present low price level is but temporary and that in a moderate
period we would go back to the old price level even on the old gold basis.
I would say a proper thing to do would be to stabilize at not less than
66 2-3 cents, at which rate the old price level would be restored. I would
stabilize on a gold bullion standard.
"The profit from a revaluation of gold should be used to pay off the
Government obligations held by the Federal Reserve banks. I would not
Permit any inflation on the gold profit.
"I do not believe in the commodity dollar as a practical measure. I would
have stabilization operations carried on by the Federal Reserve authorities."
Professor Kemmerer said it would be desirable to have only one kind of
currency, Federal Reserve notes. He took issue with the theory of Professor
Warren that there was a scarcity of gold, although he agreed that hoarding
had caused an apparent scarcity.
Mr. Warburg held that the bill appeared to endow the Secretary of the
Treasury with most of the powers ordinarily vested in a government noteissuing institution and that it would be improved if it were stated that the
Purpose was to return to a fixed ratio to gold and that it should state that
it is not the intention to take the notoisung power away from the Reserve
System in whole or in part.
Commenting on Mr. Vanderlip's proposal for a Government-owned
central bank of issue, Mr. Warburg said it was unwise to give the notethe
issuing authority to any purely political body. He suggested that
Federal Reserve Board should consist of only three appointed members,
four others to be drawn in rotation from the governors of Federal Reserve
banks, and that the member banks should have ownership of stock in
Federal Reserve banks.
In a Washington dispatch Jan. 20 to the New York'
"Times" it was stated:
G. R. Preston, a Chattanooga banker, presented a statement of the
board of directors of the Chamber of Commerce of the United States
declaring in favor of "the establishment of the currency on a gold basis,
balancing of public budgets and stabilization of exchange." The Chamber
is opposed to monetary experimentation,flat money or price-Index currency.
W. F. Gephart. Vice-President of the First National Bank of St. Louis,
explained that the Chamber did not directly oppose the President's bill
Volume 138
Financial Chronicle
but wondered "whether the bill as now stated doesn't confer upon the
Secretary of the Treasury unnecessary powers to accomplish the end in
view, and whether, when the end is effected, these powers will continue."
Devaluation of the dollar was not opposed, but "after it is fixed we want
It to stand."
Governor Roy A. Young of Federal Reserve Bank of
Boston Sees Administration's Bill to Revalue
Dollar Committing United States Permanently to
Irredeemable Currency at Congressional Committee
Hearing—Governor Norris ctf Philadelphia Federal
Reserve Bank Also Voices Concern Regarding
Provisions in Bill—Views of B. M. Anderson Jr.,
and Senator Owen.
Fear of possible effects of the President's monetary bill
upon the future of the Federal Reserve System was a thread
that ran through testimony of Roy A. Young and George W.
Norris, Governors respectively of the Boston and Philadelphia Reserve Banks, at Congressional hearings on Jan.
19, it was noted in a Washington dispatch on that date to
the New York "Times," from which we also take the
following:
Mr. Young, appearing before the Senate Banking arid Currency Committee, mentioned several times the possibility of a new central barking
system rising to take the place of the Federal Reserve.
Mr. Norris, before the House Committee on Coinage, Weights and
Measures, seemed more concerned that the Federal Reserve System was
being asked by the bill to give up property which it held as trustees for its
members.
Mr..Young treated devaluation as a fact already accomplished. It had
been a definite Government policy since April 18. he remarked, and what
he was concerned with was the course now to be followed. He thought
the bill had some merit as a stabilizing influence, but there were other
sections whose wisdom he questioned.
"I believe that any profits that come about because of any increase in
the value of gold legally at this moment belong to the Federal Reserve
banks," he said. "I do not think it necessary for the Federal Reserve
banks to retain that profit. As an American citizen I am inclined to agree
with practically everybody in the Federal Reserve System that those
profits should go to the Treasury.
Decries Irredeemable Currency.
"I would have liked to see them go in a legal way, probably with some
provision that the Federal Reserve banks might be guaranteed against some
possible or unforeseen loss. It seems to me, however, it is a much simpler
operation to let it go through a franchise tax rather than what has been set
up in the bill 82366. I mean much like what was passed with regard to
the Federal Deposit Insurance Corporation.
"I think it will be helpful to the general situation to stabilize the dollar
somewhere between 50 and 60 cents.
"There are other sections of the bill that commit us permanently to an
irredeemable currency. That I am opposed to. I think those sections
ought to be of a temporary nature. I mean with a time limit on them.
"There are other sections of the bill that give the Secretary of the Treasury
almost unlimited powers. Legally, it does not nullify Section 14 of the
Federal Reserve Act in reference to open market operations, but it does
transfer that function to the Secretary of the Treasury on a permanent basis.
"And so we may find ourselves in the inconsistent position of the Federal
Reserve System, through those open market operations under Section 14
pursuing one policy and the Treasury pursuing another."
Sees Board and Treasury at Odds.
Later, in answer to questions of Senator Byrnes, Mr. Young said it
might be entirely possible that the Treasury and the Federal Reserve Board
would be at odds on the policy of open market operations.
"If that be true," interpolated Senator Byrnes, "don't you think that
somewhere the Government should have the power and the opportunity
to protect its own securities, I mean in the event the Federal Reserve banks
should determine to attack those securities?"
"That is why you have two different set-ups in this bill, one in the
Treasury and one in the Federal Reserve banks," Mr. Young replied.
Senator Kean asked the witness what the Federal Reserve banks would
have left if the Government took its gold and such powers as were proposed
to be vested elsewhere by the bill.
"That is just exactly the inquiry I made," replied Mr. Young. "I
think the Federal Reserve banks would be settled down to pretty much of
a machine and that is why I suggested that this be not a permanent law,
that there be some limit on it.
"I have been with the Federal Reserve System for 17 years and have
seen it under many conditions, and I still believe that the regional system
is better than a central system, with all its cumbersomeness. With cumbersomeness I am satisfied it has on many occasions excluded the possibility
of hasty action on monetary policies.
"Frankly I do not want to see the Federal Reserve System abolished.
I want to see it continued not as a mechanical set-up but as fairly representative of the business and industrial institutions of the country."
Owen Defends President's Plan.
Former Senator Owen, following Mr. Young at the Senate hearing, upheld the President's program in every respect. He commended AttorneyGeneral Cummings's ruling that the bill was constitutional.
"In my opinion, the Government under the Constitution is exclusively
charged with the duty of issuing and regulating the value of money." Mr.
Owen said. "And I don't think it should be delegated to any one else.
When the Federal Reserve banks were first organized it was not for the
purpose of making profit but for stabilizing currency and credit. That end
has not been accomplished as was hoped for."
Mr. Owen minimized the plea of Mr. Young for maintenance of redeemable currency.
"What citizen wants to carry gold around in his pocket any longer?"
he asked. "If he wants to make ear-rings out of it or settle international
balances he will be enabled by this bill to get what he needs."
He estimated that the Government would have 7,000 tons of gold after
the proposed capture of Federal Reserve stocks. But little of that would
ever be required for business transactions, he said.
Senator Glass had been looking up references in a book during Mr.
Owens's testimony. He then referred to a speech made in 1913, "when
we appeared in New York together to defend the Federal Reserve System."
Ho quoted Senator Owen as saying that every citizen must be made satisfied, without necessity of examination, that every paper dollar he had was
"as good as gold."
615
"I still think so," replied Mr. Owen. "That was an excellent thought
and well said. We have done since that time what we couldn't do then.
We have made all money legal tender. That makes gold absolutely unnecessary in the pockets of the people."
Senator Glass remarked that the pending bill would confer omniscience
on the Secretary of the Treasury.
"I had rather have it there than with New York bank,ers," Senator
Owen replied.
Dr. Anderson Criticizes Plan.
The Senators then heard Dr. Benjamin N. Anderson Jr., economist
of the Chase National Bank, who spoke of dangers of uncontrollable credit
expansion inherent in putting the $2,000,000,000 stabilization fund in the
hands of the Secretary of the Treasury. He questioned the advisability
of placing the control of money in an agency that was such a big borrower
of money.
"Whatever the monetary policy, it frequently will be in conflict with the
financial policy of the Treasury," he said.
Dr. Anderson proposed that the gold profits be taken from the Reserve
banks, not by seizing gold but by taking some of the Federal securities held
by them. He deplored the provision for appropriating the $2,000,000,000
stabilization fund out of the gold profits. That fund, he said, had better
come from "regular sources"— borrowings or taxation.
The House Committee held a four-hour session, hearing Senator Connally
and Mr. Norris, the Governor of the Philadelphia Reserve Bank, before
breaking up in confusion.
Resigned to Devaluation.
Admitting that "we are all resigned to devaluation," Mr. Norris said
that the Federal Reserve contention was that "we are trustees of the Old
people have deposited and against which we have issued Federal Reserve
notes."
The Federal Reserve banks, he said, should be permitted to retain at
least the 40% gold base behind notes issued, and if the rest is impounded.
"we should be told specifically what we are going to get in return."
Mr. Norris believed private interests were more capable of conducting
banks than the Government.
"If we are going to tailspin into inflation," Mr. McGugin interrupted.
"they are going to drag down the Federal Reserve with us. Isn't the real
purpose of taking the gold to be able to start the printing presses so that
the Federal Reserve notes will be carried along with the other currency?Another Republican, Mr. Perkins of New Jersey, came to the aid of the
Administration before a partisan row could develop. He asked Mr. Norris
if the Federal Reserve banks were allowed to retain their gold, "wouldn't
it defeat the whole purpose of the Administration?"
Then he asked if the Federal Reserve banks would not rather keep the
gold in their vaults than turn it over to the Government and accept its
promise?
"Yes," answered Mr. Norris.
"You have more faith, then, in gold than in the Government?" Mr.
Perkins asked.
"Excuse me for not answering that," Mr. Norris replied.
In the Washington account Jan. 19 to the New York
"Herald Tribune" Governor Norris was quoted to the
following effect:
None of the banks, the witness said, questioned the right of the Government to take the profit accruing from reducing the gold content of the
dollar to 60%•
"We are not seeking advantage or relief, but we are interested in the
American people who have taken these Federal Reserve notes and for which
the Federal Reserve banks are acting as trustees," continued Governor
Norris discussing the Federal Reserve money issues now backed by 40%
gold and 60% commercial paper. "We do not want to be deprived of the
custody of that gold, and if the Government takes custody we should want
to know what we should have in return. We ought to have the gold certificates in return immediately. I do not want to see all the currency we
Issued lost."
Mr. Sommers said that he was convinced that under the provisions of the
gold bill the metal could and would be used only to settle international trade
balances. He explained that the proposed legislation was designed as a
policy by which the American people could get control of their money, and
that they would be better off without the currency issuing feature of the
Federal Reserve System.
Governor Norris replied that he would be very apprehensive of the reaction when the weekly Federal Reserve statements appeared showing the
Federal Reserve banks stripped of their gold.
Views of James P. Warburg on Administration's Bill
to Revalue Dollar Presented Before Senate Banking
and Currency Committee—Opposes Issuance of
"Thomas Amendment Notes."
Before the Senate Banking and Currency Committee on
Jan. 20, James P. Warburg, of the Bank of the Manhattan
Co. of New York, gave further expression to his views on
the Administration's bill to revalue dollar, establish a stabilization fund of $2,000,000,000 and the appropriation of the
Reserve Banks'gold holdings, by the Treasury. In our issue
of a week ago (page 432) we gave a statement on the bill
submitted by Mr. Warburg before the House Committee
on Coinage, Weights and Measures on Jan. 18. As in the
case of what he had to say before the House Committee,
Mr. Warburg told the Senate Committee he questioned
"gravely the advisability of taking the Reserve Bank's gold."
His statement before the House Committee follows:
Two days ago I testified before the House Committee on Coinage, Weights
and Measures. I prepared for this Committee a short general analysis of
the monetary problem and a compilation of supplementary statements. I
have sent printed copies of both to every member of Congress. At this
hearing I commented upon the President's monetary message and was
asked to comment upon the Bill 82366 which is now before you. I could
not then comment upon the bill because I had not seen it.
I now have studied the bill, and should like to make the following
observations:
1 To all intents and purposes it seems to me that the bill endows the
Secretary of the Treasury with most of the powers usually vested in a
Government note-issuing institution and with several other powers as well.
To some extent this is doubtless necessary in an emergency, but I see
nothing in the bill to limit it to an emergency.
616
Financial Chronicle
One cannot precisely define what constitutes an emergency. But one
can define one's ultimate aim. I believe the bill could be improved if it
were made to state that our purpose is to return to a fixed ratio to gold.
and that to this end we seek the establishment of an improved international
gold standard. (I have set forth a detailed proposal for an improved gold
standard in my published letters to Senator Borah and in my testimony
before the House Committee.) If our ultimate aim were so defined, the
powers conferred upon the Secretary of the Treasury could then be made
to lapse when this ultimate aim is realized.
2. It seems to me that the bill should state that it is not the intention to
take the note-issuing power away from the Reserve System in whole or
part. Personally, I should like to see the bill amended so as to contain an
outright repeal of the "greenback section" of the Thomas Amendment,
the mere existence of which, to my mind, constitutes a menace to the
National credit. It will be difficult enough to keep expenditure within the
limits of bearable taxation. The 1311CceSS of our program depends upon
not over-straining the Government credit. The best barometer of strain
on Government credit is the market for Government bonds. Support of
this market by a stabilization fund may in moments of extreme emergency
be necessary, but it must be recognized that such support is tampering with
the barometer. The issuance of Thomas Amendment notes would not be
tampering with the barometer but smashing it.
danger
3. I expressed before the House Committee my views as to the
in
of attempting to set too low a range for the dollar. I do not believe
having
but,
currency,
the whole theory of raising prices by depreciating a
embarked upon this theory for better or worse. I do believe that Congress
should now support the President in carrying out his purpose. He has
reached his conclusion as to the range within which stabilization is to take
place, after the most careful consideration of all the circumstances. We are
In his hands and we should strengthen his hands. That is why, in spite of
a personal conviction that the range selected is too low, I do not urge
altering it.
4. It seems to me that the bill contains the elements of a drastic change
of the Federal Reserve System. I have said that I believed the Government should take the profit from devaluation, but I question gravely the
advisability of taking the Reserve banks' gold and giving them gold certificates, which are only convertible into gold at the option of the Secretary
of the Treasury, and in an amount of gold to be fixed by him. I believe
that monetary gold should be owned directly by the note-issuing authority
and that the note-issuing authority should not be purely under political
control nor yet purely under private control, but should be vested in an
Institution owned partly by the public—not necessarily the banks—and
partly by the Government. I believe that our Reserve System and our
whole private banking system are in need of careful and thorough overhauling, but I do not think that this can be done by rushing through an
emergency bill.
5. Finally, if money lies at the root of our economic troubles. which
I for one think is only partially true, then, as 90% of our money is check
money, it would seem to me that 90% of the cure of our money ilLs must
lie in a properly reconstituted banking system, rather than in any measure
that deals purely with the metallic base and the paper circulating medium.
Special Note for the Committee Concerning the Central Bank Problem.
I do not believe it is wise to give the note-issuing power to any purely
political body, even to such a permanent body as Mr. Vanderlip has suggested. Nor do I believe that the note-Issuing power should be vested in
a private corporation. There is the danger of control or abuse by "big
business," which must be avoided, Just as much as the danger of political
abuse must be avoided. That is what our Federal Reserve Act attempted
to do. I believe that we can improve the Federal Reserve Act, and that
we should do so, but only after the most careful study—and not as an
emergency job to be done in a few days.
Concretely I would suggest tentatively two ideas:
1. A change In the composition of the board, so that it would consist
of three appointed members—a Governor. Vice-Governor, and SecretaryGeneral. These three officials to be appointed for long terms and to
receive much higher salaries than at present. (This involves no additional
expense, because the salaries of three members are saved.) The Governor
and Vice-Governor each to have two votes.
In addition to the three appointed members, four out of the 12 Federal
Reserve Bank Governors would compose the Board. The Governors would
serve in rotation, for six months periods, which means that each Bank
Governor would serve as a Board member for six months in every 18.
This would have the following advantages:
A. The higher gala/lea would help to engage the best possible men.
B. The present conflict between Board and banks would be largely
eliminated.
C. It would necessitate having at least one strong Deputy-Governor in
each Reserve bank.
2. The other idea, which I would put forward tentatively, is that it would
be better to have the ownership of the Reserve banks in the public, rather
than in the banks of the country. One might consider having two classes
of stock—one held by the public, and the other by the Government. The
public's stock would have limited voting rights, and a limited return, while
the Government's stock would receive the bulk of the profits after the
public had received a fair minimum dividend. There are any number of
possible variations to such a scheme—many of them have been in use. I
should not want to make a specific suggestion without studying all the
available material, but I do wish to record my opinion now that this line
of thought seems to me more fruitful than the creation of a Government
note-issuing authority. And I also think that ownership by the public
direct is more in line with present-day thought than ownership through
the private banks.
Close of Hearings on Administration's Bill to Revalue
Dollar Before Senate Committee on Banking and
Currency.
The final hearing before the Senate Banking and Currency
Committee on the Administration's bill to revalue the
dollar, was held on Jan. 22, and elsewhere we give in detail,
under separate headings, the views expressed at the Committee hearing that day by Owen D. Young and Professors
Warren and Rogers, The views of others before the House
and Senate Committees on the measure will also be found in
other items in this issue of our paper. As to further views
presented to the Committee on Jan. 19, Washington advices
to the New York "Times" said:.
Testimony of Other Experts.
Walter W. Stewart, former Director of Research for the Federal Reserve
of England, preceding
Bank of New York and Economic Adviser to the Bank
jam 27 1934
Dr. 0. M. W. Sprague, agreed with the position taken by Mr. Young.
On the particular question as to whether the bill is temporary or permanent.
he believes that it is phrased in such a manner as to indicate permanency.
He feared that this would make international agreement impossible, since
the press would cry "economic war."
James II. Rand Jr., Chairman of the Committee for the Nation, organized for a study of the causes of depression, said the economic collapse was
due primarily to world-wide increase in the price of gold without a corresponding increase in commodity prices. The Committee, he said, concluded that to escape from this deflationary force it was necessary to
separate the dollar from its gold content as the first step in recovery and
thereafter to raise the dollar price of gold.
He Said stabilization at 60% of the dollar's former gold value would
allow deflationary forces to resume their operations and that he opposed
devaluation at such a level. He supported the bill of Frank A. Vanderlip
for theiestablishment of a Federal monetary authority.
Other witnesses were Robert Harriss, commodity broker, who favored
unlimited devaluation,and George L. Le Blanc,former senior Vice-President
of the Equitable Trust Co. of New York, who advocated revaluation, but
opposed pegging of the dollar.
Housei Coinage Committee Charges Great Britain
ForcedkUnited States Off Gold Standard —Says Proposed Stabilization Fund Is to Prevent "Repetition
of This Experience."
The statement that Great Britain forced the United States
off the gold standard was made by the Coinage Committee
of the House of Representatives, on Jan. 18, in formally
reporting approval of the Administration's monetary bill.
The proposed $2,000,000,000 stabilization fund was intended
to "prevent a repetition of this experience," the Committee
added, remarking that Great Britain's operation cif her
equalization fund "was so effective in driving our dollar up
that we were forced off the gold standard." Other extracts
from the report were quoted as follows in an Associated
Press dispatch from Washington, Jan. 18:
instrument ever
The stabilization fund V/1113 termed "the most ingenious
developed in the monetary system."
the Committee added.
"It is equally effective in attack and defense,"
American
"The reason for its establishment in this case is to defend the
fund operated
dollar and our gold stocks against the invasion of a similar
by competitor nations."
must
The Committee said that to understand operations of the fund "we
have been forced
realize that since the world depression nearly all nations
internal conditions
off gold, and swollen budgets along with disturbing
to better
have depreciated their currencies; consequently, they could deal
high currency
advantage with other low currency nations rather than with
nations.
our"It must be admitted by everyone that we have a right to defend
curselves and protect the interests of our own people against depreciated
we are
rencies of other nations, and when other nations realize that
the advandetermined to do this and make it impossible for them to enjoy
of all
tages of a depreciated currency, this will hasten the stabilization
currencies upon a permanent basis.
"It is not contended that this bill will miraculously and automatically
but it is
restore the necessary price level and normal industrial activity,
believed that it will greatly contribute to this end."
As to devaluation, the Committee said:
it is borne
"It cannot be insisted that we are seeking to inflate when
power of the
In mind that we are merely restoring the nomial purchasing
repudiate honest
dollar. Neither can it be said that we are seeking to
which will have approxidebts, because the creditor will receive a dollar
mately the same purchasing power as the one he loaned."
John Janney, President of the American Society of Practical Economists,
told the Committee in executive session that creation of a United States
currency equalization fund was desired by Great Britain.
Committee members declined to reveal the reasons he gave for holding
that belief, but said he had what he considered factual evidence that Great
Britain by this means expected to maintain control of world currency
through natural rather than artificial methods.
Mr. Janney told the Committee, moreover, that creation of the stabilization fund would engage the United States and Great Britain in a currency
war that would disturb the whole world. At Mr. Janney's request the
hearings were secret.
President Roosevelt Signs Bill Extending Life of Reconstruction Finance Corporation for One Year—
Measure also Increases Lending Power of Corporation.
On Jan. 21 President Roosevelt signed the bill to con-
tinue the life of the Reconstruction Finance Corporation until February 1 1935. The bill also increases the
lending by the Corporation to $850,000,000. The President, however, in a letter to Jesse H. Jones, Chairman
of the Corporation, said it was his understanding "that the
extension of the life of the corporation automatically makes
available to it the amount of any repayments received •
during the period of such extension." In approving the bill
the President attached to it the reservation made for expenditures by each Governmental Department, fixing a maximum
amount beyond which an Executive Order would be necessary for withdrawal fromfthe Treasury. In the case of the
RFC Mr. Roosevelt fixed $500,000,000. The following
is the President's letter to Chairman Jones:
"I have approved the bill. S. 2125, Seventy-third Congress, second session, 'to continue the functions of the RFC,to provide additional funds for
the corporation, and for other purposes.'
"It is my understanding that the bill does not confine the total lending
authority of the RFC to the sum of $850,000,000 specified therein, but
that the extension of the life of the Corporation automatically makes available to it the amount of any repayments received during the period of such
Volume 138
Financial Chronicle
extension and that you may make commitments and expenditures under
the indefinite provisions of the RFC act.
"It is noted that the bill does not confine the payments on account of
commitments and agreements entered into by the Corporation to the period
ending Feb. I 1935, but provides for payments over a period of one year
after the date of such commitments and agreements.
"In order to confine all additional expenditures required to be made in
1935, which were not expressly provided for in the budget, to the amount
Indicated in my budget message, I find it necessary to advise you that my
approval of this bill is given that cash withdrawals from the Treasury by
the Corporation for the fiscal year 1935,including any debentures issued for
the purchase of preferred stock and capital notes of banks, and exclusive
of the funds which you may be called upon to allocate to other agencies of
the Government as provided by law, will not, without my prior approval,
exceed the sum of $500,000.000, and that no commitments or agreements
shall be made so that expenditures may be made thereon after June 30 1935.
"Your estimates of repayments for the fiscal year 1935 indicate that this
total authorized expenditures of $500,000,000 may for the most part be
made out of repayments."
Brewery Financing Banned by Reconstruction
Finance Corporation.
In a Washington dispatch, Jan.22,to the New York "Journal of Commerce," Jan. 23,it was stated that many applications for loans to finance breweries have been rejected by
the RFC, according to an announcement by Chariman
Jones.
He is said to have expressed the belief that the brewers
had a bright future and could provide their own financing.
While no distilleries have applied for loans, they are in the
same category, Mr. Jones said.
The RFC planned to continue making loans to sm
business indirectly through mortgage companies.
Jones said that about $50,000,000 was available for this
purpose.
RFC Repotted to Have Discontinued Sales of Debentures—Action Centers All Future Financing of U.S.
in Treasury Department.
In a Washington dispatch Jan. 26 to the New York
"Herald Tribune" it was stated that all the Administration's
financing was again centered in the Treasury with the announcement that the Reconstruction Finance Corporation
hereafter will market no debentures. The dispatch further
stated in part:
The agreement was reached late this afternoon between Henry Morgenthan, Jr., Secretary of the Treasury, and the RFC directors. Jesse H.
Jones, Chairman of the RFC, said: "We decided to discontinue offering
debentures when our rates got out of line with the market. We didn't
want to affect the Treasury's financing program."
Denying that there had been any friction between himself and Mr.
Morgenthau, Mr. Jones added that the issue of RFC debentures to date
had had the Treasury's approval.
Interest Roles Oul of Line.
Three issues of RFC debentures have been authorized: 2250,000,000 for
one year at 2%; $250,000,000 for two years at 2St %, and $250.000,000
maturing June 15 1936 at 3%. Mr. Jones said that approximately $175,000.000 of the 2 and 2q% debentures had been marketed, and that there
were commitments for a few millions more. None had been offered in the
.
open market.
Mr. Jones said that the RFO purchases of preferred stock and capital
notes in banks now totals $909,870,000 in 5,653 banks, and that It has
advanced $631,143,000 in loans on assets of 684 closed banks.
RFC Considers Reduction in $50,000,000 Chinese Credit
for Wheat and Cotton Purchases—Only About
$7,000,000 Already Used.
The Reconstruction Finance Corporation is considering
reducing the Chinese credit authorized for $50,000,000 for
the purchase of wheat and cotton, according to an announcement Jan. 22 by Jesse Jones, Chairman of the RFC. Authorization by the RFC to the Chinese Government included
$40,000,000 for the purchase of cotton and $10,000,000 for
the purchase of wheat. About $7,000,000 of the cotton
and wheat loans has been used. Mr. Jones said that the
reduction of the credit would be substantial. He expected
that all of the wheat loan would be used, but intimated that
not much more of the cotton loan would be drawn upon.
A Washington dispatch of Jan. 22 to the New York "Journal
of Commerce" added the following information:
"There is no use in the continuation of the credit if it is not to be used,"
Jones said. "Whatever action is taken will be through agreement with the
Chinese Government. We are dealing with their accredited representatives."
To Loan to Small Business.
Mr. Jones agreed that the RFC should not make substantial loans for
foreign credit to Russia or any other country. He remarked that "the
People are interested in the use of good judgment in any foreign credit
extensions."
Loans will be made by the RFC to small business through mortgage
companies. No attempt is being made to take care of big business establishments, Mr. Jones said. He expressed the belief that with the available
$50.000,000 the RFC may "do a good job."
A number of applications for loans to finance brewing establishments
have been received. No loans have been made on breweries. Mr. Jones
Indicated that this industry has a bright future and should be able to
finance itself through the normal sources. It appeared doubtful whether
any brewery loans would be made. While no distilleries have applied for
loans, the same policy would be applied, a000rding to Mr. Jones.
617
The RFC has made a loan of $647,000,000 to the receivers of closed
banks in the campaign to release deposits. Purchases of preferred stock
and capital notes have been made in 5,596 banks amounting to 2904.700,000.
Payment of Interest on Demand Deposits Barred by
Banks Members of Federal Deposit Insurance
Fund.
The fact that all banks which are members of the temporary deposit insurance fund are barred from paying interest
on demand deposits was noted in our issue of Jan. 20, page
443. Several exceptions to the rule are indicated in the
notice issued Jan. 19 by Federal Deposit Insurance Corporation, which we give herewith in full:
Directors of the FDIC have issued Regulation C.in regard to the payment
ofinterest on demand deposits by banks which are members of the temporary
Insurance fund (which insures, in full, individual deposits up to $2,500).
This regulation provides that no bank may pay interest on a demand
deposits
deposit, or after a deposit becomes payable on demand. Demand
within 30 days
are those which are payable on less than 30 days' demand or
payable
from date of deposit. The exceptions to this rule are (a) deposits
the District
only at an office of a bank not located in the United States or in
of
deposits
(c)
banks,
savings
mutual
by
of Columbia, (b) deposits made
law, and
public funds where payment of interest is required under State
that contract
(d) deposits made by contract entered into heretofore unless
contains an option permitting the bank to conform with these regulations.
of the
members
are
which
The milting Act of 1933 provided that banks
eserve System cannot pay interest on demand deposits, and
Fed
to banks
Restmljfion C of the Federal Deposit Insurance applies this ruling
are members of the insurance fund.
in
eposits Up to $2,500 in 13,431 Banks Insured ReFDIC—Approximately 54,000,000 Accounts
ported as Protected.
Approximately 54,000,000 individual -bank accounts are
now protected up to $2,500 each by the temporary insurance
fund, Walter J. Cummings, Chairman of the Federal Deposit
Insurance Corporation, reported on Jan. 10. The Corporationistathd:
banks in every section
The 54,000,000 insured accounts are In 13.431
requirements for admisof the United States which have successfully met the
sion to the insurance fund.
for inclusion in
Only 141 banks—or 1% of the number which applied
the temporary insurance fund—did not qualify.
of the fund, 5,175
Of the 13,431 institutions which are now members
are affiliated with
are National banks, 873 are State-chartered banks which
banks not
-chartered
State
are
the Federal Reserve System and 7,383
affiliated with the Federal Reserve System.
Mr. Cummings had the following to say:
banks throughout the
The fact that some 54,000,000 accounts in 13,431
to have a re.
country are now insured against loss up to $2,500 is bound
business generally,
assuring effect both upon public sentiment and upon
marks one of
depositors
these
to
I believe that this protection afforded
of banking in America.
the most forward steps ever taken in the history
the fund on
Information which has come to me since the inception of
in favor, not only with
Jan. 1 indicates that deposit insurance is gaining
cities have
many
in
deposits
the general public but with bankers. Bank
greater public
shown an increase so far this year, due, I believe, to the
confidence in banks which the insurance feature has engendered.
The following further information was supplied by the
Corporation:
holding membership in the
Pennsylvania leads in the number of banks
New York. 891;
temporary insurance fund, with 983. Other leaders Are:
Wisconsin, 578, and
Illinois, 838; Texas, 815; Minnesota, 646; Ohio, 634;
Missouri, 559.
which are
The following table shows, by States, the number of banks
members of the insurance fund:
No.of
No.of
Banks.
Banks.
Slate—
323
197 NebraSka
Alabana
10
15 Nevada
Arizona
57
196 New Hampshire
Arkansas
396
Jersey
New
265
California
42
135 New Mexico
Colorado
891
111 New York
Connecticut
220
Carolina
North
45
Delaware
198
21 North Dakota
District of Columbia
634
137 Ohio
Florida
396
Oklahoma
251
Georgia
100
63 Oregon
Idaho
983
838 Pennsylvania
Illinois
15
445 RhodeIsland
Indiana
79
431 South Carolina
Iowa
210
Dakota
352 South
Kansas
309
375 Tennessee
Kentucky
815
143 Texas
Louisiana
61
85 Utah
Maine
42
177 Vermont
Maryland
312
208 Virginia
Massachusetts
186
335 Washington
Michigan
156
646 West Virginia
Minnesota
578
203 Wisconsin
Mississippi
62
559 Wyoming
Missouri
123
Montana
13,431
Total
Marshall R. Diggs Appointed Executive Assistant to
Director O'Connor of FDIC.
Marshall R. Diggs, of Dallas, Texas, has been appointed
Executive Assistant to Director J. F. T. O'Connor of the
Federal Deposit Insurance Corporation, Mr. O'Connor
announced on Jan. 11. Mr. Diggs following his graduation,
from Yale in 1913, practiced law in Chicago for three years.
When the United States entered the World War in 1917 he
joined the army, becoming a captain of infantry. In 1919
he went into the oil business in Texas. From 1921 until
1927, Mr. Diggs devoted his time to sales work. He was
later elected Vice-President and General Manager of the
Southwestern Sewer Co., and he still remains Vice-President
of that corporation.
618
Financial Chrcnicle
Suit Brought to Test Constitutionality of New Jersey
Law Authorizing Insurance of Preferred Stock to
Aid in Rehabilitation of Banks.
An action to test the constitutionality of New Jersey's
recently enacted legislation authorizing the issuance of
preferred stock for deposits to aid banks in financial rehabilitation has been initiated in the Federal Court at
Trenton,according to advicesfrom that city to the "Jersey
Observer." The dispatch continued:
As a result ofthe National bank holiday last March, the State Legislature
passed various related statutes providing for the issue of preferred bank
stock. The original measure was presented by former Senator Arthur
Quinn, of Middlesex, and a supplement was introduced by Senator Joseph
G. Wolber,of Essex.
Before Judge Philip Forman in Federal Court yesterday the American
Surety Co., of New York, instituted proceedings against the Asbury Park
and Ocean Grove Bank. The company contended that the authorization
to permit banks to reorganize by resort to preferred stock, after 75% of
the depositors and creditors and two-thirds of the stockholders had approved.
was a violation of the right of contract.
The company's suit was based on an effort to obtain return of a $10,000
bond to protect bankruptcy deposits. The company declined to accept
preferred stock for its claim against the bank.
Counsel for the bank, Lester C. Leonard. asserted the company's argument was "academic" and all creditors would receive full value.
460 Production Credit Associations Organized to
Make Loans in Agricultural Localities-18 States
Covered Completely.
Production credit associations to make short-term loans
to farmers have been organized in localities covering more
than half of the entire country, according to a statement
issued Jan. 22 by S. M. Garwood, Production Credit Commissioner of the Farm Credit Administration. Altogether
460 of these associations have been incorporated and chartered to .rake loans in as many agricultural localities. They
cover 18 States completely, and 5 of the 12 FCA. districts.
In his statement Mr. Garwood furthe- said:
The Production Credit Division of the FCA expects to have one of these
short-term credit service stations ready to make loans in every agricultural
locality in the United States when the 1934 crop season arrives. Many
loans will be made this spring when the actual need for credit to produce
crops and livestock arises. At present the big job is to provide ;cod management and sound financial policies for the local units that are being set up.
The average-sized production credit association covers about 4 or 5
counties, varying according to the credit needs of the particular agricultural
area. Each association must cover an area large enough to give a volume
of loans sufficient to secure efficient organization of lending machinery
and low cost of operation.
Credit may be obtained from these associations as conveniently as from
any carefully managed bank. Most of the credit will run from 3 to 12
months, properly secured loans being made as required. Proper precautions are taken to prevent over-extension of credit so that farmers will
not have to pay unnecessary indebtedness with resulting interest.
To enable these associations to begin making loans immediately the
Production Credit Corporation, organized in each FCA district, is purchasing most of their authorized capital stock. In each case the amount
of stock purchased amounts to about 20% of the loans the association is
expected to make.
In this way the amount of credit obtained by each association will depend
entirely on its credit needs. The funds derived from the sale of its capital
stock to the Corporation is used by the association to establish a line of
credit with the Intermediate Credit Bank,from which it may obtain loanable funds sufficient to meet its needs.
Additional capital becomes available to the association when loans are
made, each borrower being required to own voting stock in the association
equal to 5% of the amount of his loan. By this arrangement the borrowers
own about one-fifth of the capital stock; the Production Credit Corporation four-fifths.
The stock purchased by the Corporation is non-voting, but preferred as
to assets in case of liquidation. The voting stock is purchased by the
borrowers only, on the "one-man one-vote" principle.
Officers and a local loan committee of each association are selected by
the temporary board of directors which is chosen by the charter members
at tin time of organization. The Production Credit Corporation of the
district is aiding each association to make the necessary arrangements for
receiving applications for loans.
The money that will be loaned through these organizations this spring
will not be advanced from Government funds, but made available by
means of debentures which are sold to the investing public by the Intermediate Credit Banks.
The interest rate of 6% now charged individual producers by these
associations covers the expense of getting this money. The interest rate
tharged the association by the Intermediate Credit Bank at present is
3%, and an interest spread of 3% is charged by the association to enable
it to build up a sound financial standing and eventually retire the stock
held by the Production Credit Corporation. Thus an association may
ultimately be owned and controlled entirely by its members.
Farmer to Receive $1,833,000,000 of Federal Spending
During Fiscal Year Ending June 30—Is Greatest
Single Beneficiary—Banks and Building Also
Greatly Aided.
"The largest single beneficiary from the huge Government
spending program, for which $6,357,000,000 already has been
appropriated, will be the farmer, who will receive a total of
$1,833,000,000 from all sources in the current fiscal year
ending June 30 1934," declares Moody's Investors Service,
in the current issue of its "Monthly Review and Outlook."
"This is roughly equal to 30% of 1933 gross farm income."
Moody's, on Jan. 22. further stated:
Next in order will be banks, which will receive $1,830,000,000, and
building, for which a total expenditure of $1,229,000,000 is contemplated.
Jan. 27 1934
Retail trade will benefit indirectly from expenditures for practically all
groups. These figures are exclusive of $1,166,000,000 in appropriations
still to be made by Congress at this session.
Of the $1,833,000,000 which has been allotted to agriculture in the
current fiscal year, $500,000,000 has already been spent. The amount
allotted to farmers includes $1,368,000,000 (emergency) to be spent for
loans on agricultural surpluses, loans for exports, crop loans, mortgage
relief, &c., plus $515,000,000 of AAA benefits (from the ordinary budget)
for crop reductions. Of this latter amount, hog raisers will receive 080,000,000; cotton growers, $145,000,000; wheat growers, $100,000,000; corn
growers, $80,000,000; tobacco growers, $10,000,000.
"Bank depositors, especially in the weaker banks, as well
as business dependent on those banks, will be aided by the
$1,830,000,000 to be expended in this direction," the analysis
said. It continued:
Of the total, $1,630,000,000 is id the form of loans and proceeds from
the sale of preferred stock and notes to the RFC, plus $150,000,000 Federal
Deposit Insurance Fund and $50,000,000 for preferred stock of the new
Federal Savings and Loan Associations. Financial institutions and home
owners will benefit from the $457,000,000, not included in the figure for
banks, to be expended for the refinancing of home mortgages.
It is stated that building will also benefit substantially
from Federal spending. The $1,229,000,000 scheduled to be
spent in the current fiscal year compares with private and
public works construction in 1933 valued at $1,256,000,000.
Of the building total, roads will receive $337,000,000 and
other construction $892,000,000. Railroads, according to
the budget figures, will receive $93,000,000, chiefly for debt
financing, and $84,000,000 for purchase of equipment and
materials, such as rails and ties, freight cars and locomotives. This latter figure has been increased to $183,000,000
since the official budget figures were prepared. Moody's
likewise said:
Retail trade, as mentioned, will benefit indirectly from practically all
types of expenditures. It will, moreover, receive considerable stimulus from
that large group of expenditures which find their way directly to consumers
in the form of direct relief or payrolls. These aggregate $1,205,000,000,
composed of State relief, $463,000,000; Ci‘11 Works Administration, $400,000,000; conservation work, $342,000,000.
The amount spent in this group may actually prove larger if additional
appropriations out of the contemplated total of $1,166,000,000 are voted for
the extension of CWA and other relief. After reaching consumers, these
sums will, of course, tend to be spent by them in many different directions, but it may be assumed that the bulk will be paid for food, clothing
and similar necessities. Retail trade, therefore, is the broad industrial
group that will first feel the benefit of these expenditures.
Discontinuance Sought of Federal Loans to Municipalities for Building of Electric Plants to Compete with Privately Owned Plants Regulated by
State Commissions—Group of Connecticut Investors in Public Utilities Securities Act to Enlist
Support of Other Owners in Appealing to President
and Members of Congress—Discriminatory Taxation Also Opposed.
A group of Connecticut investors in public utility securities disturbed by the threat to their savings "Contained in the
Government's program of unfair competition with privately
owned utilities" have petitioned the President and members
of Congress urging them to use their influence to discontinue
Federal loans to municipalities for the building of electric
plants to compete with privately owned plants regulated by
State Commissions. They also seek the repeal of discriminatory taxation. A letter indicating tais has been addressed by
the group to 2,686 owners of public utility securities in the
Third Congressional District of Connecticut who are asked
to write to the President and Congressmen making known
their views in the matter. The signers include a former
President of the Chamber of Commerce, the Secretary of the
Chamber of Commerce, a former State Commissioner of
Banking and President of the Connecticut Savings Bank,
President of the Security Insurance Co., Trustee of Hospitals,
&c., Chairmen of Various State Commissions, prominent
physicians, a clergyman, manufacturers,,,business men and
professors in Yale University and a member of the City
Board of Financ3. It is stated that none of the signers is
in any way connected with public utilities or investment or
commercial banking. The letter efwoll
ffoaw
ven
s:
Conn., Jan. 15 1934.
To the Owners of Public Utility Securities:
Dear Sir: We understand that you are an owner of public utility securities. We have become so disturbed by the threat to our savings
contained in the Government's program of unfair competition with privately-owned utilities that we are writing to the President of the United
States and to our Senators and Representatives in Congress to urge them
to use their influence—
(1) To discontinue Federal subsidies and loans to municipalities for
the purpose of building electric plants to compete with privately-owned
plants regulated by State Commissions and adequately supplying the
needs of their communities. and
(2) To repeal the discriminatory 3% tax on certain gross earnings of
privately-owned electric light and power companies, or to subject municipal
plants to the same Federal taxes as are imposed on privately-owned companies.
You undoubtedly realize that discriminatory taxation and Federal
subsidies may destroy your savings and those of millions of other citizens
Financial Chronicle
Volume 138
of moderate means, impair the assets of savings banks and life insurance
companies representing the savings of tens of millions more, and undermine the endowments of hospitals, colleges and other philanthropic institutions.
May we suggest that in your own interest you should write immediately
to express your views on this matter to—
President Franklin D. Roosevelt Washington, D. C.
Senator Augustine Lonergan, United States Senate, Washington, D. C.
Senator Frederick C. Walcott, United States Senate. Washington, D. C.
Hon.Charles M.Dakewell,House of Representatives, Washington,D.0.
Hon. Francis T. Maloney,House of Representatives, Washington. D.C.
and urge your friends to do likewise. Only by prompt and concerted
action can we overcome this threat to the savings of those who have laid
aisde a portion of their earnings to care for illness, the education of their
children, and their old age.
This letter is sent you entirely on the initiative and at the expense of
the investors whose names appear below, and has not been prompted by
any other interests.
Very truly yours,
Donald A. Adams, 104 Linden Street
Frederick M. Adler, 396 St. Ronan Street
George J. Bassett, 434 Humphrey Street
r.) Eugene M.Blake, 100 Blake Road, Hamden
Prof.) Edward S. Dana, 24 Hillhouse Avenue
. Fulton Ferguson, 122 Canner Street
r.) Charles T.Flynn,79 Kildeer Road. Hamden
Prof.) Hudson B. Hastings, 6 Event Street
Sidney S. Holt, 188 Cald Spring Street
James W. Hook, 98 Cold Spring_ Street
ajor) Edward A. Judge,941 Ellsvrorth Avenue
Prof.) Leigh Page, 244 Livingston Street
Victor Roth, 452 Hump_hrey Street
H. Gordon Rowe, 172 East Rock Road
(Rev.) Charles 0. Scoville, 240 Church Street
James E. Wheeler, 82 Edgehill Road
(Prof.) John Zeleny, 44 Cold Spring Street
We should appreciate a reply, addressed to any one of the signers of
this letter, to say that you are writing to Washington.
r
r
Shipping Bureau of Department of Commerce Postpones
Further Construction Loans—Secretary Roper
Approves Recommendations of H. H. Heimann,
New Director —$126,000,000 Now Outstanding.
Daniel C. Roper, Secretary of Commerce, announced on
Jan. 22 the adoption of new policies as recommended by
Henry H. Heimann, Director of the Shipping Board Bureau.
Mr. Heimann was appointed by Mr. Roper Jan. 10. He was
formerly Executive Manager of the National Association of
Credit Men. His recommendations included a general revision of credit methods, "with a view to adjusting the real
needs of the shipping industry to the necessity of protecting
public funds." Mr. Roper pointed out that of $145,000,000
lent by the Government under the 1928 ship construction loan
legislation, $126,000,000 was outstanding among mail and
non-mail operatives, while $40,000,000 represents balances
due from companies which are in arrears. We quote further
from his announcement as given in a Washington dispatch
of Jan. 22 to the New York "Herald Tribune":
In view of the importance of this fiscal problem before the bureau, Mr.
Roper announced, no new construction loans would be made, as a matter of
general policy, for a period of 60 to 90 days.
Mr. Heimann, at the request of the Secretary, is continuing his study of
all features of the service. A thorough examination of the mail contracts,
as well as all other contracts now in effect with the Bureau, is to be made.
"With respect to loans now in arrears," the announcement said, "the
Director of the Bureau will conduct conferences with all obligors to the
Government" on the fulfillment of overdue obligations and the prospects
of better management and greater economies. "In instances where the
obligors to the Government have utterly failed to live up to their con'
tractual relations, it will be insisted that these situations he corrected;
otherwise the cancellation of contracts may be recommended," it was stated.
"There will be initiated a policy of requiring greater financial responsibility on the part of those seeking Government aid before the execution of
future contracts."
"In keeping with existing legislation," the announcement said, "it will
be the policy of the Shipping Board Bureau to relinquish gradually operation of the ships either directly or indirectly when and if this can be accomplished with equity to the Government. However, should it be necessary for the protection of the Government's interest to temporarily get further into the ship operating business in the pursuance of a policy of protedting Government obligations, such action will be taken, though in that
event it should be a temporary expedient."
The industry's legitimate needs, the Secretary said, would be given every
consideration.
President Roosevelt Plans to Discontinue CWA Activities by May—Hopes 4,000,000 Men Now on Government Payroll Will Find Normal Employment
Before Summer —To Ask $1,166,000,000 for Relief
Activities—H, L. Hopkins Will Investigate Charges
of Graft.
President Roosevelt plans to end the work of the Civil
Works Administration in May in the hope that with the
approach of summer 4,000,000 men now on the Government's emergency payroll will be able to find normal outdoor work, according to newspaper advices from Washington
Jan. 22. The President indicated, however, that he would
ask Congress for an emergency appropriation of $1,166,000,000 to carry on the CWA, the Civilian Conservation Corps
and direct Federal relief. Of this amount $350,000,000 will
be devoted to CWA activities. Harry L. Hopkins, Federal
Emergency Relief and Civil Works Administrator, said on
Jan. 19 that the CWA contemplates drastic demobilization
of its workers starting Feb. 15, which "substantially means
619
dropping 1,000,000 men every two weeks." This statement
evoked a wave of protest by various State and municipal
officials and by Congressmen, who contended that with such
rapid additions to the number of unemployed business recovery would be retarded.
Associated Press advices from Washington Jan. 22 to the
New York "Times" outlined the President's views, in part,
as follows:
The final decision probably depends upon what business conditions
prevail later in the spring.
The President was represented to-day at the White House as determined
to resist all efforts to expand the budget above the limits announced in his
message to Congress.
He will use about 8350,000,000 of the emergency appropriation soon to
be asked for carrying on the CWA from next month until May.
Would Continue CCC.
He will propose a continuation of the CCC for one year from the conclusion of its first year in April. This will involve an appropriation of
$300,000,000.
Under the plan for discontinuing the civil works program,the first workers
would be taken off the rolls in the South, with the elimination progressing
northward as the spring and summer seasons advanced.
Harry L. Hopkins, PER and CWA Adminstrator, said to-day that the
legislation was now being prepared and was expected to go to the Capitol
shortly. It had not been decided, he said, whether the Administration
would ask a direct appropriation from the Treasury or whether the money
would be raised by the Reconstruction Finance Corporation as are present
relief funds.
Mr. Hopkins has ordered 14 States to reduce their civil works payrolls
immediately. The reductions range from 81,000 men in Wisconsin to
1.000 in Utah.
In each instance the States had exceeded their quota.
The reductions ordered are:
Wisconsin, 81,000; Arkansas, 20,000:
Maine, 1,500; Minnesota, 8,500; New Hampshire, 1.500; Oklahoma, 1.500;
Texas, 45,000; Utah, 1,000; Washington, 10,000; West Virginia, 16,000;
Kentucky, 13,000; Ohio, 46,000, and Michigan. 16,000.
Illinois was instruCted to cut to a total of 200.000, the actual number
to be taken off the payroll not being specified in the telegram sent by Mr.
Hopkins to the State Administrator.
Remarks of Mr. Hopkins on Jan. 22 were noted, in part,
as follows in a Washington dispatch of that date to the
"Times":
Mr. Hopkins struck out sharply to-day at alleged graft in the CWA,
appealing to the Department of Justice to deal with charges of misuse of
public funds.
In connection with plans for tapering off CWA activities, Mr. Hopkins
remarked that to the best of his knowledge the number of unemployed,
including those now on Civil Worksjobs,on relief, and asking for jobs,totaled
about 9,000,000, of whom about 2,000,000 were farmers and tenant farmers
who never before had been classed as unemployed, and perhaps 3,000,000
who had been out of work more or less since 1929.
Between 1.000,000 and 2,000,000 would, perhaps, be "picked up" by
public works on the termination of the Civil Works program, he said, and
he counted on about 1,000,000 being absorbed by the "seasonal pick-up."
But about 4,000,000, he thought, would be left on unemployment and relief
lists after all the absorption had taken place on which it seemed at present
reasonable to count.
Under the retrenchment order issued last week, no one had been dismissed, Mr. Hopkins explained, but no additions could be made to the
Payrolls, and no new projects initiated. All the projects now under way,
he said, could be completed by May 1 with the $350,000,000 which the
President already has indicated his intention to ask Congress to provide.
Gets 9,000 Letters a Day.
The "retrenchment" order was bringing him about 9,000 letters a day
from all parts of the country, he said.
The immediate situation in New York had been the subject of conferences
held here with Senator Wagner and of telephone conversations with Mayor
LaGuardia, which he declined to discuss. Both had communicated with
him several times, Mr. Hopkins said, and he thought that the Mayor
would probably be coming to Washington within the next few days.
As for the alleged graft, it amounted to not more than $100,000. Mr.
Hopkins said, but he deplored as "tremendously disconcerting" the thought
that any one in his organization could be guilty of such breach of trust.
Mr. Hopkins revealed that his office had been spending "tens of thousands
of dollars and much of our time, of late" investigating charges, the vast
majority of which were found to be baseless, but others all too well founded
in fact.
"We'll do our own housecleaning," Mr. Hopkins added, "but where we
find people have been stealing our money, those cases will be turned over to
the Attorney-General for action.
"Our legal department tells me all this is nothing more than was bound to
happen, and that the cases are far fewer than might reasonably have been
anticipated. But I never anticipated anything of the kind; I suppose I'm
naive and unsophisticated, but that's the truth. I didn't, and I feel very
badly about it."
Politicians and business men alike, he said, were guilty of attempting to
take over and make use of relief and Civil Works activities.
But above all he mourned the shortcomings of "our own people," however few, and however "far down the line."
"You appoint men to work with you, and because you know them, you
you can go home and sleep at night." Mr. Hopkins said. "And then the
thing gets too big for you or for them to keep in touch with all your people
and these things happen."
Governor Lehman Warns Against Decrease in CWA
Activity—New York Executive Tells President
Curtailment Would Be Serious Economic Danger—
Urges Congress to Appropriate Funds to Carry
on Relief and Says State Cannot Increase Its
Own Burden.
Governor Lehman of New York on Jan. 22 made public
a telegram sent to President Roosevelt on that day in
which he expressed grave concern for the future of unemployment relief and declared that any curtailment of Civil
Works expenditures by the Government would constitute
a serious social and economic danger. The Governor also
620
Financial Chronicle
Jan. 27 1934
•
made public letters sent on Jan. 17 to the President and to
Harry L. Hopkins, Federal Relief Administrator, in which
helset forth similar views. Mr. Lehman's letter was sent
prior to the issuance of an order by Mr. Hopkins that hours
of work under the CWA plan be shortened and that no
additional persons be placed in the CWA quota.
The Governor's telegram of Jan. 22 read:
The President. The White House, Washington, D. C.:
On Wednesday of last week I sent you a letter urging the continuation
of the Civil Works program until those who have been given work under
it can be absorbed by private industry.
On Thursday I was informed of the order issued by Harry L. Hopkins.
Theieffect of the issuance of that order has served strongly to confirm
thelviews previously expressed in my letter to you which I again call to
your:attention.
As I pointed out in my letter it is quite impossible for either New York
State or its municipalities to take over wholly or in part the Civil Works
program initiated and heretofore carried on by the Federal Government.
p,,L The State is already carrying a greater load for home relief alone than
Previously carried by it for home and work relief combined; I hone, therefore, you will make every effort to obtain from the Congress appropriations
sufficient in amount to continue the Civil Works program for the unemployed as originally contemplated by the Federal Government until such
unemployment can be absorbed by industry or through your public works
program.
HERBERT H. LEHMAN.
The letter sent to the President by Governor Lehman
on Jan. 17 was as follows:
My dear Mr. President: On many occasions. I have noted in the press
that the Federal Government intends to extend the Civil Works program
until the people who have been given work under it can be absorbed by
private industry. I believe, however, that no additional appropriations
for this purposo have as yet been made by Congress.
feel so strongly that the discontinuance or substantial reduction of
this program undertaken by the Federal Government might lead to serious
social and economic consequences, that I feel it My duty to write you
personally my views.
I hope that sufficient funds will be made available by the Federal Government to carry on the program. The people have become accustomed
to it and are now depending upon it. A termination of it before its beneficiaries have been absorbed into industry would result in a serious and
economic reaction.
As you know, the State of New York is already doing as much as it
possibly can. It has been forced to take over a larger and larger part of
the municipal expenditures because of the withdrawal of Federal aid for
home relief.
As a result, the State's share for home relief alone, it is estimated, will
be at the rate of $6,000,000 a month for at least the next several months.
This is vastly more than was heretofore spent by the State of New York
for home and work relief combined.
I deem the matter of such importance to the State of New York that
I will be only too glad to come down to Washington to lay my views before
you at any time agreeable to you. If you will telegraph or telephone me
If you desire to see me, I shall, of course, suit my convenience to yours
and will come at any time, unless forced absolutely to remain here by
other official duties.
I have also written at length to•Harry Hopkins on this subject and for
your information I am enclosing a copy of my letter to him.
I need not assure you of my very keen desire to continue to co-operate
with you and Harry Hopkins in every way possible in making your Civil
Works program fully effective.
With kindest personal regards, I am, very sincerely yours,
HERBERT H. LEHMAN.
The Governor's letter to Mr. Hopkins, also sent on
Jan. 17, read in part as follows:
My dear Mr. Hopkins: I understand from many statements carried
in the press that the Civil Works program will be discontinued by the
Federal Government. I very strongly hope that sufficient funds will
be made available by the President and the Congress to continue this
program until the men and women enlisted under it can be absorbed by
private industry.
To discontinue or seriously curtail before that time the present program
initiated by the Federal Government might bring grave economic and
social consequences.
The unemployed of this State have been led to believe that they would
be given continuing work by the Federal Government. In their minds
the Federal works activities, as I have previously pointed out, are closely
connected with the relief program.
Obviously, neither the State nor its communities can take over this
work, even in small part. When the Federal Government assumed the
responsibility for the Civil Works program it withdrew its help in carrying
on home relief.
As a result, the obligation of the State for home relief has vastly increased. It is estimated that the cost to the State for home relief alone
will be at the rate of about $6,000,000 a month for the next several months.
This is vastly more than the State has ever spent in the past for home
and work relief combined.
There has, therefore, been no financial saving to the State of New York
through the Civil Works program. The aggregate burden on the municipalities has not decreased through the taking over of work relief by the
Federal Government. Their obligations for home relief have become
greater, while, in addition, they are required to supply funds for materials
to carry on the Civil Works program.
I have previously stated that once the Civil Works program was initiated
by the Federal Government on the scale and under the conditions adopted,
It would be absolutely impossible for the State of New York or its municipalities to take it over at a later date, wholly or in any substantial part.
This conviction has become stronger as the weeks have passed, and
I feel it, therefore, my very urgent duty to request that every possible
means be taken by the Federal Government to secure from the Congress
such additional funds as may be necessary to carry on the present Civil
Works program in this State until the people working thereunder have
been absorbed by industry.
I have written the President that I shall be glad to come to Washington
at any time that my duties in connection with the legislative session will
permit, in order to lay before him my views and discuss the matter with
him. I have also sent a copy of this letter to the President for his information.
I want to take this opportunity of thanking you personally and on
behalf of the members of the temporary Emergency Relief Administration
for your co-operation and for your unfailing sympathetic understanding
of the conditions existing in New York State.
With kindest personal regards, I am, very sincerely yours,
HERBERT H. LEHMAN.
FACA Head Names Liquor Trade Code Authorities.
Joseph H. Choate, Jr., Chairman of the Federal Alcohol
Control Administration, on Jan. 19 announced code authorities of• the distilled spirits industry and of the brewing
Industry as follows:
Distilled Spirits Industry—Dr. J. M. Doran, Chairman; Frank B.
Thompson, Frank L. Wight, W. E. Hull, Owsley Brown, Seton Porter,
L. S. Rosenstiel, T. P. Walker, S. S. Neuman, Russell R. Brown, H. L.
Felton, W. H. Venneman and H. I. Peffer.
Brewing Industry—John C. Brockman, Chairman; C. C. Reeder, Seers.
tary ; Irving J. Solomon, Donald A. Dailey, Joseph Goldie, R. A. Huber,
C. IV. Feigenspan, M. J. Brown and A. B. Becha.
List of Companies Filing Registration Statements with
Federal Trade Commission Under Securities Act.
The filirg of new securities totaling close to 43.. million
dollars, of which almost $3,000,000 relate to new capital,
were announced by the Federal Trade Commission on Jan. 19
The new capital issues involve the businesses of refrigerating,
fruit and produce, work clothes, machinery, gold mining,
and beer and liquor. The list of issues filed for registration
under the Federal Securities Act were announced as follows
Jan. 19:
Refrigeration Research Corp. (2-580). Brooklyn, N. Y., a New York
corporation proposing to contract for, supply and design certain air conditioning, refrigeration, and heating systems, issuing $250.000 worth of
common stock for corporation purposes. Among off cers are: Donald B.
Knight, President, and Lester Billion, Secretary.
Sauk City Brewing Co. (2-581), Sauk City, Wis., a Wisconsin corporation
proposing to manufacture and sell fermented malt beverages, issuing
$125,000 in common stock for corporation purposes. Officers are: J. E.
Buerki, President; Frank Little. Vice-President; 0. R. Buerki, Secretary
and R. C. Kuoni, Treasurer, an of Sauk City.
John Poindexter Distilleries Co. (2-582). Cynthiana. Ky., a Delaware
corporation organized to engage in all phases of the whiskey and other
alcoholic products business, proposes to issue 232,500 shares of common
stock in a total aggregate amount of $840,000 for corporation purposes.
Underwriters are: J. S. Judge & Co., New York, who are to receive a
commission amounting to $1.50 a share, having underwritten 135,000
shares of capital stock which they are to purchase at a unit price of $4 a
share, intending to sell to the public at $5.50 a share. Among officers are:
Calvin A. Palmer, Detroit, President; Mason W. Bergman, Detroit,
Secretary and John Linehan, Cynthiana, Ky., Treasurer.
Cambridge Building Corp. (2-583), Philadelphia, Pa., calling for deposits
of first mortgage 6% bonds, dated March 1 1928. on apartment
property
in the amount of $1,397,500 in the matter of 0. Bentm Cooper, an individual from whom Cambridge Building corporation purchased the apartment
house building subject to the first mortgage to secure the 6% bonds.
Person authorized to receive service and notice is Kenneth MacNeal, care of
Cambridge Building Corp., School House Lane, Germantown, Philadelphia,
Pa. Cambridge Building Corp. now has title to the property subject to
the lien of the mortgage securing the issue of bonds to be called for deposit
in this instance.
California Gold Lode Mines, Inc. (2-584). Los Angeles, Calif.. a Delaware
corporation developing and working gold mines, owning property in California, proposes to issue 800,000 shares of capital stock at an aggregate
price not to exceed $800,000. The underwriter, Franklin Flick and Co.,
Inc., New York, has exclusive agency for sale of 750,000 shares and option
for sale of 50.000 shares additional, all to net the issuer 50 cents a share.
the underwriter's conimission or discount being the difference between 50
cents a share and the amount obtained from sale of the stock. The underwriter is also to receive 25,000 shares of stock of the corporation. Among
Officers are: George L. Davis, Redlands, Calif., President; and L. M.
Forcey, Santa Ana, Calif., Secretary-Treasurer.
Casey Jones. Inc.. (2-585), Baltimore, a Maryland corporation manufacturing work clothes and qualified to do business in Maryland, Virginia,
and West Virginia, proposes to issue $404,925 worth of common stock for
general corporate expenses and operations. Underwriter is the Maryland
Co., Baltimore. Among officers are: Harry E. Weinberg, President:
Morris Sneider, Vice-President and Treasurer and Ralph C. Huntington,
Secretary, all of Baltimore.
Committee of the Paragon Trading Corp., (2-586), Brooklyn, calling for
deposits of Paragon Trading Corp., 1457 Broadway, Now York City.
engaged in factoring, in a plan for reorganization or readjustment involving
2.597 shares of preferred stock no par value and 1,000 shares of common
stock. Stated value of the issue is $108,880. Person authorized to receive
notice is Albert McKee Sr., Chairman. 248 Monahan St., Brooklyn.
Imperial Beverages Corp., (2-587). Wilmington, Del., and Cleveland. Ohio,
a Delaware corporation manufacturing and distilling beverages, syrups,
concentrates and other allied products, proposes to issue class A common
stock in the amount of $300,000. The underwriter is Abbott & Co.. 11
Broadway, New York. Among officers are: Howard B. Hankey, President; T. Kenyon Cook. Vice-President; Charles E. Gibson, SecretaryTreasurer and William T. Mulkey, Technical manager, all of Cleveland.
Pomeroy Hydraulic Jack Co. (2-588). Long Beach, Calif., a Delaware
corporation manufacturing, assembling and marketing hydraulic jacks,
proposes to issue 150,000 shares of common stock at $1 a share for company purposes. Among officers are: T. C. Pomeroy, Long Beach,
President; J. A. Clark, San Rafael, California, Vice-President, and R. E.
Hatchl, San Rafael, Secretary-Treasurer.
Blue Star Markets, Inc. (2-589). Phoenix, Aria., a Delaware corporation
dealing in raw, dried, processed and manufactured fruits and produce,
proposing to establish markets in Arizona, California, Oregon, Washington
and other States. The company proposes to issue 5,000 shares of common
stock at a total aggregate price of $50,000. Among officers are: F. W
Merton, President; Sigel Braeutigam, Vice-President, both of Los Angeles, and Benjamin Fell, Secretary-Treasurer, Baldwin Park, Calif.
On Jan. 22 the Federal Trade Commission announced
that it had received for registration under the Securities Act
approximately $34,000,000 in proposed new securities, all
Volume 138
Financial Chronicle
new capital, of which about $30,250,000 is for investment
companies and the remainder for mining,distilling and insurance corporations. The list follows:
National Vermiculite Products Corp. (2-590), Chicago, an Illinois corporation engaging in mining, treating, reducing and expanding vermiculite
and other ores and marketing such ores and products developed therefrom.
The company proposes to issue 11,230 shares of common stock, of which
10,005 shares will be sold for cash to stockholders at $33.33 1-3 per share,
the remaining 1,225 shares to be issued to acquire the outstanding stock
not owned by the issuer in Vermiculite & Asbestos Co., a Montana corporation, or the interest of the stockholders other than the issuer in the
physical assets of the Montana corporation. Among officers are: A. T.
Kearney, President; John Mohr, Treasurer, and D. D. Sells, Secretary,
all of Chicago.
Owings Mills Distillery, Inc. (2-591), Baltimore, a Maryland corporation
proposing to manufacture and sell whiskey and other distilled spirits.
issuing 90,000 shares of common stock at $1.25 a share. Henry White
& Co., Baltimore, underwriters, are to receive a commission of 25 cents
a share on sales to the public, netting the corporation $1 a share. A commission of 10 cents a share will be paid to underwriters on their sales to
brokers, investment dealers, banks and salesmen at $1.10. Among officers
are: J. J. Lansburgh, President, and Henry M. White, SecretaryTreasurer, both of Baltimore.
Wayne M. Cory (2-592). Indianapolis, proposing to engage in automobile insurance business and to issue $375,000 class A common stock with
preference. The issuer is not yet incorporated; consequently, officers
have not been selected.
Financial Shares Corp. (2-593), Jersey City, a Delaware corporation
engaged in handling funds for investments in a diversified list of stocks
of banks and insurance companies, proposing to issue $4.962,947 in shares
of capital stock. Steramler & Co., 52 William Street, New York, exclusive
sales agent for the entire issue, Is to receive for selling expenses and commissions an allowance of 9%% over the net current value of the corporation's capital stock. Among officers are: Theodore W. Stemmler, Jr..
Chairman of the board and President; Carl Winkelmann, Secretary and
Treasurer, and G. I. Boyd, Assistant Secretary and Assistant Treasurer.
all of New York.
Quarterly Income Shares, Inc. (2-594), Jersey City, a Maryland investment corporation of the restricted supervised type, proposes to issue
$25,000,000 common capital stock, the proceeds to be invested in securities
of several industrial, utility and merchandising companies. Principal
underwriter is Administrative & Research Corp. (Maryland). Jersey
City. Among officers are: Ross Beason, Miami Beach, Fla., President
Thomas F. McJilton, Greenwich, Conn., Vice-President and Treasurer,
and L. W. Schmidt, Bronx, N. Y., Secretary.
National Provident Foundation Syndicate (2-595). New York City, a
trusteeship under terms of a syndicate agreement from which a securities
corporation is to be formed after financing is completed. The organization proposes to Issue 250 units of interest at $1.000 a unit, the proceeds
to be used for expenditures of the syndicate and financing of the proposed
corporation. Among officers are: William E. A. Wheeler, Douglaston,
L. I., Chairman; and the following managers: John A. Bates and George
A. McCarthy of Philadelphia; Lewis W. Peterson, East Orange, N. J.,
and Charles W. Boyd, Newark, N. J.
A. & O. J. Caldwell, Inc. (2-596), Newburyport, Mass., a Delaware
corporation manufacturing and selling alcoholic liquors, proposing to issue
140,000 shares of common stock for corporation purposes at $3 a share.
The underwriter, Hale, Waters & Co., Inc., Boston, is to sell 130.000
shares, receiving for its services commissions as follows: A commission
In cash at the rate of 50 cents a share sold and a stock commission in addition thereto of 7.6923 shares for each 100 shares sold, or a total commission, when the entire 130,000 shares have been sold, of $65,000 cash
and 10,000 shares. Among officers are: Andrew F. Carter, Boston,
President; Marron Fort, Cambridge, Treasurer, and James P. Hale.
Hamilton, Chairman of the board.
H. E. Walker Distillers & Brewers, Inc. (2-597). Detroit, a Michigan
corporation proposing to carry on a general brewing. malting and distillery business, issuing 1,241,390 shares of class A and 1.349.676 shares
of class B stock in a total aggregate amount of $2,504,448. Among officers
are: Harrington E. Walker, Detroit, President; Bernhard Stroh, Jr.,
Grosse Pointe, Mich., Treasurer, and S. L. Fitzpatrick, Dearborn, Mich.,
Secretary.
In making known the above lists the Commission said:
•
In no case does the act of filing with the Commission give to a security
the Commission's approval, or indicate that the Commission has Passed
on the merits of an issue or even that the registration statement itself
s correct.
The last previous lists were given in these columns Jan. 20,
page 442.
NRA Plans to Urge Reduction in Work Week at Conference of Code Committee in February—General
Johnson Prefers 32-Hour Week and Calls 40-Hour
Schedule Inadequate to Relieve Unemployment
Sufficiently.
The NRA plans to take action next month to shorten the
work week in American industry, General Hugh S. Johnson,
Recovery Administrator, said at a press conference on
Jan. 10. He expressed the opinion that "eventually the
whole country has got to go to a shorter work week," and
Indicated his personal preference for a'week of 32 hours, since
In most industries the week must be in multiples of eight
hours. He added, however, that even a 36-hour week would
be an achievement. A Washington dispatch of Jan. 10 to the
New York "Journal of Commerce" further reported the Administrator's remarks as follows:
The Administrator would not venture a declaration as to what the !maximum hours will be, and while he is convinced the week should be much
shorter than in any of the codes he declared he knew that "you can't have
It by fiat decree without raising Cain." He disclosed that "an academic
study" is now being made and he announced that by the time the Code Committees of the nearly 200 industries now codified come to Washington on
Feb. 15, "we are going to consider the whole subject of whether as one combined movement we are going to again reduce hours under all the codes."
Acts for Code Revision.
Expressing the belief that "if business turns up and looks better" the
maximum hours can be shortened, he explained that the price hearing which
621
has been under way for the past two days was the first step in the scheduled
plan to call in the code authorities with a view to revise codes. He said the
February meeting would seek to find out the inconsistencies that exist in some
of the codes, asserting that "some industries find themselves under as many
as eight or 10 codes." He added that "it will be a sort of mopping up
process."
"We have had a little experience under these codes," General Johnson said
in amplifying answers to questions at a press conference where the past of
the NRA was reviewed and its future planned. "When we began the first
code we did not know how the second and third would be—you could not
start out and conjecture what they would be. We have to decide each case
on its merits."
Co-ordination Sought.
Conceding that there are "a great many inconsistencies and much overlapping," he reiterated that "we are going to begin about Feb. 15 and get
all of these people in for the purpose of seeing if we cannot co-ordinate this
code structure."
The Administrator's remarks were prompted by questions as to whether
he was having a committee conduct "an energy survey" to correlate various
fuel and power industries. His opinions on the maximum hours followed inquiries concerning the permission recently given the automobile industry to
increase its work week from 35 to 40 hours.
Reminded that the increase in working hours in the automobile code was
based on the supposition that 40 hours a week would absorb all the surplus
labor in the industry, he said that he was not satisfied that that was the
case, "but what we want to do is to see what this increase is going to do."
He said that if it does not move satisfactorily, the code will be opened
up separately. He added that the NRA statistical analysis showed a 40-hour
week when the industry sought the increase and he was obliged to give them
40 hours like other industries.
Sees Shorter Week Coining.
A question as to how far the working hours would be cut drew from the
Administrator the following statement:
"I cannot answer that question off-hand, but I think eventually this
whole country has got to go to a shorter week. We have exhausted
possibilities statistically on the codes of various industries, and it is a very
tight question. There are a lot of these companies which have exhausted
capital and reserve and cannot borrow money.
"You have to consider the condition of industry or you will get kick-backs
—bankruptcies and all that sort of thing—that will practically nullify all
of your efforts. It is distinctly not a simple question."
The closing session of the hearings on price increases under the N. R. A.
was devoted to summing up by members of the Consumers' Advisory Board
of the high points of their investigations into substantial price boosts in
the lumber, petroleum, iron and steel, paper and paper products, boot
and shoe, textile and bituminous coal industries.
Dexter Reeser, economic adviser to the board, and his assistants explained that their data were based almost entirely upon figures submitted
by the industries and added that without an adequate field force it had been
impossible to make any comprehensive checkup on their accuracy.
Administrator Johnson agreed that there is a vast field of increased
prices, specifying retail and wholesale distribution and also manufacturing,
but lamented it was impossible to get accurate statistics, stating that he has
tried repeatedly to obtain dependable figures on employment, unemployment
and re-employment. He said no such figures exist, after discussions on
statistics prepared by Labor Department, American Federation of Labor
and other organizations.
Executive Order Provides for Protection of Small
Business Man and Consumer—President Roosevelt
Attacks Monopolies Under NRA, Ruling That
Codes Cannot Be Used for Price-Fixing and Discrimination—Complaints by Small Industries May
Be Investigated by Federal Trade Commission and
Department of Justice.
President Roosevelt on Jan. 20 signed an Executive Order
designed to provide a method whereby the small,independent
business man and the consumer will be protected from
discrimination and price fixing. The President's action
was taken as the result of many complaints which have
been filed with the National Recovery Administration and
other Federal agencies concerning alleged violations of the
anti-monopoly provisions of the anti-trust laws and of codes
of fair competition. The order provides that where a complainant is dissatisfied with the manner in which his case
has been handled by the Government agency to which he
may have appealed he may press his complaint before the
Federal Trade Commission or ask for the assistance of the
Department of Justice. In this way, the President said,
grievances arising out of the codes or based on anti-monopoly
legislation may be heard by disinterested Governmental
agencies. Supplementing the President's order, Donald R.
Richberg, General Counsel of the NRA, on Jan. 20 issued
a statement in which he stressed the fact that the provisions
of the anti-trust laws are still in force and that monopolistic
practices are not countenanced by codes of fair competition.
A White House statement of Jan. 20, explaining the
purpose of the Executive Order, said:
"The President to-day signed an Executive Order to provide a practical
and rapid way for making effective those provisions of the National Industrial Recovery Act that were designed to prevent persons, under the
guise of purported sanctions contained in codes of fair competition or
independently or in defiance of such codes, engaging in monopolistic
practices or practices tending to eliminate, oppress or discriminate against
small enterprises.
"Where a complainant shall have been dissatisfied with the disposition
of his case by the agency of the Government which be may have invoked,
the complainant may press his case before the Federal Trade Commission,
or if this Commission has no jurisdiction to handle the complaint, it is
to be referred to the Department of Justice. Under such a method,
grievances arising out of codes of fair competition or based upon violations
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Financial Chronicle
of those portions of the anti-trust laws of the United States that prohibit
monopolistic practices, can be adequately aired and settled by disinterested
governmental agencies in accordance with the principles set forth in
the recovery legislation. The Federal Trade Commission, in handling such
complaints, will follow the procedure set forth in its organic act—a
procedure that is informal, not costly to the complainant and expeditious.
"These agencies, equipped with wide knowledge of and long experiecne
in issues of this nature, will be able to carve an ordered and just solution
of the pressing economic problems necessarily raised by the application
of the principles inherent in the recovery program. Conceptions as to
what practices are monopolistic and are beyond the allowable area of
the NIRA will thereby be enabled to rest upon realistic foundations of
the place to be accorded to concentrated capital and co-operative effort
in our modern economic civilization.
"The result should be a coherent body of law, protective of the large
consuming interests and yet broad enough to afford the necessary play
for industry to act as a unit, free from the pressure of unrestrained and
wasteful competition. Such pathways lead to industrial peace in the
fullest sense of that word, a peace that will be just to the various contending interests and which will afford a permanent basis for our economic
reconstruction."
Text of Executive Order.
The Executive Order of Jan. 20 reads as follows:
"In order to effectuate the policy of Title I of.the National Industrial
Recovery Act, approved June 16 1933, I, Franklin D. Roosevelt, President
of the United States, pursuant to the authority thereby vested in me and
In accordance with the provisions of said Act and the provisions of an
Act to create d Federal Trade Commission, approved Sept. 26 1914, do
hereby direct that:
"1. Whenever any complainant shall be dissatisfied with the disposition by any Federal agency except the Department of Justice, of any
complaint charging that any person, partnership, corporation, or other
association, or form of enterprise, is engaged in any monopolistic practice,
or practice permitting or promoting a monopoly or tending to eliminate,
oppress, or discriminnate against small enterprises which is allegedly in
violation of the provisions of any code of fair competition approved under
the National Industrial Recovery Act, or allegedly sanctioned by the
provisions of such code but allegedly in violation of Section 3 (a) of said
National Industrial Recovery Act, such complaint shall be transferred to
the Federal Trade Commission by such agency upon request of the complainant.
"2. The Federal Trade Commission may, in accordance with the provisions of the National Industrial Recovery Act, and the provisions of
an Act to create a Federal Trade Commission, approved Sept. 26 1914,
upon the receipt of any such complaint transmitted to it, institute a
proceeding against such persons, partnerships, corporations, or other
associations or form of enterprise as it may have reason to believe are
engaged in the practices aforesaid, whenever it shall appear to the Federal
Trade Commission that proceeding by it in respect thereof would be to
the interest of the public.
"Provided, That in any case the Federal Trade Commission shall
determine that any such practice is not contrary to the provisions of
Section 5 of the Federal Trade Commission Act or of Section 2, 3 or 7 of the
Act of Oct. 15 1914, commonly called the Clayton Act, it shall instead
of instituting such proceeding, transfer the complaint, with the evidence
and other information pertaining to the matter, to the Department of
Justice.
"3. The power herein conferred upon the Federal Trade Commission
shall not be construed as being in derogation of any of the powers of said
commission under existing law."
Mr. Richberg, in his statement, said that it could not
be too strongly emphasized that no industrial combinations
will be permitted under the codes and the NRA without
danger of invoking the anti-trust laws. He added that
during the meeting held in the week of Jan. 20 by the
National Industrial Bituminous Coal Board, certain groups
of operators had the impression that they were now free
to fix prices without obtaining the approval of the NRA.
Mr. Richberg's statement follcrws:
"This seems to he an appropriate time to recall to the attention of
the public and to those industries now operating under codes the fact
that the provisions of the anti-trust laws of the United States are still in
full force and effect and that monopolistic practices are not permitted
even under the provisions of codes.
"The NIRA does provide that any action complying with the provisions
of a code shall be exempt from the provisions of the anti-trust laws of
the United States. This does not mean two things:.
"First—This does not mean that a code can be written so as to authorize
monopolistic practices.
"Second—It does not mean that, under the protection of a code, industrial groups can organize and then, without regard to the requirements of the code, proceed to fix prices, or to carry out other operations
in restraint of trade, free from the penalties of the anti-trust laws.
"It is necessary to call these matters to the attention of the public
and of industry for two reasons.
"In the first place, there has been a widespread misunnderstanding,
even among public officials, that monopolistic practices might be sanctioned in the codes.
"In the second place, there have recently come to the attention of the
administration instances in which industrial operators have been organized
to carry out the provisions of codes and then have proceeded to disregard
their objections under the codes or the restrictions upon them in the codes.
"Without singling out one group, it should be stated that during the
meetings of the National industrial Bituminous Coal Board it became
evident that some groups of coal operators had the impression that they
were now free to fix prices and otherwise to act in combination without
obtaining the approval of the representatives of the NRA, which is designed
to safeguard the public interest.
"It cannot be too strongly emphasized that no combinations of industrial operators are authorized to take concerted actions, except so far
as is explicitly authorized under the terms of the codes and the requirements of the NRA, without subjecting themselves to the penalties of the
anti-trust laws wherever such laws would prohibit such combined action.
"A timely warning should be given that, wherever members of an
Industry have assumed mistakenly that they have been licensed by virtue
of the adoption of a code to combine and to disregard the restrictions
Jan. 27 1934
imposed by the NRA to protect the public interest, they are simply laying
themselves open to prosecution under the anti-trust laws and that the
provisions of Section 5 of Title I of the NIRA do not exempt them from
the penalties of those laws."
Senators Borah and Nye Reply to General Johnson—
Attack NRA as "Plunderbund" and Suppressor of
Small Business — See Anti-Trust Laws Easily
Evaded.
Senators William E. Borah and Gerald P. Nye on Jan. 19
Issued statements replying to a speech made on the preceding day by General Hugh S. Johnson, Recovery Administrator, in which he predicted that attempts would be
made in Congress to repeal the National Recovery Administration on the ground that it fostered monopolies
and failed to protect the consumer and small business man.
General Johnson, in his address, attacked his critics and
challenged them to offer constructive suggestions that would
remedy alleged defects in the recovery program as at present
constituted. He did not mention names, but his remarks
were generally construed as aimed at Senators Borah and
Nye, who have been actively criticizing the NRA and contending that it permits evasion of the anti-trust laws and
works serious injury to smaller businesses. In the statements issued on Jan. 19 Senator Nye referred to General
Johnson as a "roaring Nero," while Senator Borah repeated
his charge that many small firms are being driven out of
business as a result of the NRA.
Associated Press Washington advices of Jan. 19 quoted
the two Senators as follows:
"No amount of denunciation," Mr. Borah said, "can change the fact
that trusts and combines and monopolies are fixing prices in this country
for the American people." He has introduced a bill which would repeal
the suspension of anti-trust laws under the NIRA. Both he and Senator
Nye have charged that NRA is being made a vehicle for monopoly and
the oppression of small business.
"Nero may rant and roar," Senator Nye said, "but all the browbeating
he may resort to will not destroy, though it may delay, knowledge of
what NRA policy is doing . . . All to the end that the 'plunderbund'
may enjoy a larger monopoly and maintain profits on fictitious capitalization."
Senator Borah reiterated that monopolies were taking millions "unjustly" from the people. "Nothing," he said, "can dispose of the fact
that many small firms are being driven out of business through the practices
of combines and trusts. When those things are remedied, I will ewase
my efforts, and not until then."
Administration leaders in Congress were silent on the controversy, Preferring to hear from the White House before any public expressions.
One result of the tilt was a revival of the periodic numor that General
Johnson would resign soon.. Many members of Congress. said privately
to-day that they felt General Johnson's departure would lubricate NRA
machinery, and that his genius lay apparently in organization and not in
administration.
Electric Home and Farm Authority Incorporated as
Subsidiary of TVA to Promote Electricity Use.
The Electric Home and Farm Authority has been formally incorporated, it was announced on Jan. 20 by David
E. Lilienthal, President, who said that the Articles of
Incorporation give power to buy, manufacture and sell
electrical appliances in the United States and foreign countries. The Authority was created by President Roosevelt
several weeks ago as a subsidiary of the Tennessee Valley
Authority to promote the use of electricity by reducing
the price of electrical appliances to small home and farm
owners. Mr. Lilienthal said that the EHFA will manufacture electrical equipment, with its operations extending
beyond the boundaries of the Tennessee River basin. Headquarters will be set up temporanly at Knoxville, Tenn.,
where the TVA maintains its principal offices.
NRA Attacked as Seeking to Resuscitate "Big Business"
with Disregard for Consumer—Head of Bureau of
Economic Information Denies Charges Before
Academy of Political Science—E. T. Weir Praises
NRA But Defends Company Unions.
A charge that those administering President Roosevelt's
Recovery Program were acting in bad faith to "resuscitate
big business," and that they had completely disregarded
the interests of the consumer, was made on Jan. 6 before a
special conference of the Academy of Political Science at
Philadelphia by Frederick J. Schlink, President of Consumers
Research, Inc. Dr. Paul H. Douglas of the University of
Chicago, Chief of the NRA Bureau of Economic Education,
replied to this accusation by saying that Mr. Schlink has
shown "a total lack of discrimination" and a "total disregard
for the truth." At a meeting of the Academy on the preceding day (Jan. 5), Ernest T. Weir, Chairman of the National
Steel Corp., pledged his "unqualified support to the President's Recovery Program" bu added that he also has
"considerable faith in and an abiding respect for much of the
old deal."
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Volume 138
Financial Chronicle
We quote in part from a Philadelphia dispatch of Jan. 6
to the New York "Times" regarding the addresses before the
Academy on that day:
At the close of Dr. Douglas's reading of his paper, Mr. Schlink was
called back for a rebuttal speech.
In his reply Mr. Schlink asserted that the General Motors Corp. was
a powerful if not a dominating force in the councils of the NRA while
the General Food Corp. was equally potent in swaying the Agricultural
Adjustment Administration toward sympathy for "big business" and
disregard of the consumers' interests.
The Federal Government, he declared, "makes no provision whatever
In practice, or even in theory, for any basis of control or safeguarding of
either price or quality in the interests of the general population of consumers. Indeed, no definite economic or social philosophy is apparent
In the movement as a whole:nor apparently are its leaders qualified by training or experience to develop one.
"Mr. Roosevelt and his advisers," he went on, "have clearly taken
over an astonishing amount of the principal ideas and points of view of
the previous administration: that the national prosperity and well-being
are measured first and foremost by the profits of industry.
"If it happens that Mr. Smith, who lives, with his too-large family,
in a city ofslums, pays more for everything he buys,from coffee to pancake
flour, and cannot collect more as salary, wages or tips, and as a result runs
Into personal and financial disaster, the New Deal experts and economists
have neither advice nor help to offer.
"I assert that a new deal, with no certain and assured provisions In
theory and in fact for the safeguarding of the small and weak enterpriser.
and the still smaller and weaker ultimate consumer, is a new deal which
must necessarily fail, not only to bring back the general prosperity, but
even to bring back any lasting return of high profits and dividends to the
owners and operators of industry and trade."
Mr. Schlink assailed the National Consumers Advisory Board, declaring
it in general to be without power to protect the consumers' interest against
highly organized labor and industrial groups, unacquainted with the problem
either by sympathy or by technical training or advice, and in general incompetent.
"Anti-Consumers" Policy Charged.
"The whole system of setting up codes of 'self-government in industry.'
in whose operation not even the Government itself, much less labor and consumers, has a dominating voice or one that is clearly heard or even mentioned in the public prints," Mr.Schlink declared,"is a situation so patently
opposed to the public right and interest that it is but necessary to mention
it to indicate its absurdity and the abdication which it represents of the
proper function of Government as a regulator, arbiter and controller."
Dr. Douglas declared that "vociferous complaints" from employers
showed that the Consumers Advisory Board not only had the ability to
protect the consumer but was doing so.
I:fDr. Douglas devoted the bulk of his prepared address to a warning
against the "disastrous consequences," which he asserted would follow
regimentation of industry, as an outgrowth of the NRA, in the form of
cartels.
,To avoid such a situation, he urged that the NRA be moderated: that
both indirect and direct price fixing by code be eliminated: that the regional
code authorities should have a more strongly consumer or purchaser representation: that the interests of the consumers should be protected in matters
of quality as well as price through rigid enforcement of the pending Copeland bill as a starter and through the eventual creation of a department
of the consumer, identical with that urged by Mr. Schlink.
Associated Press advices from Philadelphia on Jan. 5
reported Mr. Weir's address as follows:
Mr. Weir, who recently engaged in a controversy with Hugh S. Johnson,
NRA Administrator, over the election by Weirton Steel Co. employees of
collective bargaining representatives, declared that, "new or old deal, we
must have a reasonable assurance that it will be a square deal."
"I have firmly supported the National Industrial Recovery Act," Weir
declared. "I believe in its principles, but I differ with the National Labor
Board in its efforts to force national unions upon employers. My differences
were and still are solely with the National Labor Board."
Speaking before the American Academy of Political and Social Science,
Mr. Weir said the Weirton company of which he is Chairman, had voluntarily assumed a new responsibility and pledged that there will never be a
general wage reduction in the company until the question is submitted to
and approved by the elected representatives of the employees. Weirton
is a subsidiary of National Steel.
"It seems apparent to me," he said, "that our chances of avoiding labor
disturbances are much greater if the management is dealing with its own
employees, instead of dealing with paid union organizers, who may have a
direct financial interest in keeping trouble brewing. I have no quarrel with
organized labor per se, but I have a decided opinion regarding the perception and sincerity of many of the labor leaders of to-day. . . .
NRA Plans Board to Hear Complaints of Alleged Discrimination Against Small Business Man—Senator
Nye Pleased With General Johnson's Announcement, But Senator Borah Asserts Anti-Trust Laws
Must Be Restored.
General Hugh S. Johnson, Recovery Administrator,
announced on Jan. 24 that plans are being made for the
creation of a special board of prominent persons to hear
complaints of discrimination against the small merchant
and business man under the operation of the National
Recovery Administration. Senator Nye of North Dakota,
who has been one of the principal critics of the NRA recently, said after a conference with General Johnson that he
was satisfied with the new arrangement. Senator Borah of
Idaho, however, remarked that it was useless to create a
board such as that proposed without restoring the operation
of the anti-trust laws. A Washington dispatch of Jan. 24 to
the New York "Times" discussed the announcement as
follows:
The Johnson announcement was made just after a talk with President
Roosevelt at the White House, where the Recovery Administrator revealed
details of previous conversations with Senators Nye and Norris of the
progressive group.
"We have worked out the plan satisfactorily from the standpoint of all
parties, including the Administration; legislation will not be necessary,"
General Johnson explained.
623
The General, with Donald Richberg. NRA Counsel, had a two hours'
conference with Mr. Nye this morning. According to all accounts, the
atmosphere was entirely peaceable throughout the meeting.
"We went over the situation with respect to small industry and its treatment by the NRA," Mr. Nye said later.
"There is every indication that the Administrator is ready to reconsider
my original proposal that there be created in NRA a special board to outstanding citizens to which the small manufacturers and business men may
present their complaints as to the operations of the codes which have been
adopted. Of course this is highly gratifying."
The Senator added that, as previously announced, he would "continue
my discussions of monopoly and monopolistic practices" in a nation-wide
broadcast over the NBC Friday night at 10:30 o'clock. Eastern standard
time.
Members of the new board, according to Senator Nye, should be men
opposed to monopolies and conversant with the problems of the small
business man. He considers that big business is unduly represented in the
administration of the codes, and that the board's membership should be
"on the other side."
While Senator Nye did not confirm the suggestion it appeared that he
had been asked to serve upon the board. He said that if he were so asked.
he would have to weigh the question heavily, in view of the pressure of
other work.
He would not indicate names of possible appointees to the board, but
other Progressives suggested such men as Judge Samuel Seabury, Judge
H. M. Landis and Clarence Darrow.
Senators demanding creation of the board made it plain that, while
they did not insist upon members of "radical tendency," they did wish men
of "liberal thought."
It was understood that General Johnson's conversation yesterday with
Senator Norris was in an endeavor to pave the way for the talk with Senator
Nye to-day,
Ninety Percent of Nation's Business Men Behind NRA,
Donald Richberg Declares—Tells Lumbermen's
Association Government Will Act to Enforce
Codes.
Donald R.Richberg, General Counsel to the NRA asserted
on Jan. 24 that 90% of the business men of the nation are
whole heartedly behind the Administration's recovery program and that the Government is taking steps to compel
compliance with NRA regulations by the other 10%. Speaking at a dinner of the Northeastern Retail Lumberrnen's
Association in New York City, Mr. Richberg's remarks
were reported as follows in the New York "Herald Tribune"
on Jan. 25:
"It is perfectly clear," said Mr. Richberg, "that if the program of the
NRA is going to carry us out of the depression, it is the program to keep us
out of depression in the future. I know of no important personage in the
Administration who hasn't known that for a long time. But it is a program
of co-operation that can only be carried forward by an overwhelming majority of the men in trade and industry.
"There is not a very large percentage in any trade that I have yet found
who sit back and sneer with the gorgeous cynicism of ignorance, and who
scoff and cheat and chisel against the only thing that can save them from
themselves. It is safe to say that 90% of the business men of the nation
recognize the necessity of organizing themselves for self-government. With
that support we can now feel assured that the codes can be enforced, not
as something crammed down the throats of an unwilling people, but as the
wish and will of the people themselves.
"And during the last 30 or 60 days the process of organizing the enforcement of the will of 90% of the American people against the 10% who won't
play the game has been going forward. I think we have out feet on the
ground. The Government is going to see that the law and the codes
adopted under it are enforced."
Annual Report to Stockholders of Irving Trust Co.
of New York—Reduction in Holdings of German
Credits—Irving Trust as Receiver in Bankruptcy.
While some of the details in the annual report to the stockholders of the Irving Trust Co. of New York were given in
our issue of Jan. 20, page 448, we make room here for other
information contained in the report. Regarding the German
loan holdings of the Bank the report said:
German Loans.
The book value of loans in Germany at Dec. 31 1933, amounted to
$15,815,000, a reduction from a maximum of $38,649,000 in 1931, and
$26,337,000 at Dec. 31 1932. In accomplishing this result, $1,881,052
has been charged to profit and loss.
The total of $15,815.000 at the end of 1933 consisted of short-term credits,
of which $9.561,000 was due almost entirely from leading German banks
based on their customers' obligations, one-third of which was secured by
merchandise held in trust for our account. The balance of $6,254,000 was
either guaranteed by the German Gold Discount Bank or owed directly by
the German Government.
The report stated that on Dec. 31 1933, the capital stock,
surplus and undivided profits of Irving Trust Co.(3107,564,161.23) were equivalent to 26% of its deposits. In part, we
also quote from the report as follows:
Liquid assets (over $288,000.000) applicable to unsecured deposits
amounted to about 77% of such deposits. These assets consisted of cash.
demand balances due from banks (including items in process of collection),
United States Government securities (less those pledged to secure deposits
of public monies), call loans and acceptances of other banks. . .
Basis of Asset Valuations and Reserves.
All losses estimated or realized on loans and mortgages are charged off as
and when they become known. That portion of loans and mortgages which
is classed as doubtful is provided for in reserve for contingencies. Depreciation in security investments is also provided for in reserve for contingencies. In determining the amount of reserve required for this purpose,
United States Government and all other actively quoted securities are taken
at current market values: inactive or unquoted securities are based on estimated values.
The examinations made by the State Banking Department, the Clearing
House Examiner, and the directors, and appraisals by the management
as well, serve as a basis for determining losses and depreciation and the
adequacy of reserve for contingencies and for its adjustment.
Financial Chronicle
624
Bank Buildings.
The net book value of the company's headquarters building at 1 Wall St.
at the year-end was $25,760,010.91. For the year 1933 the net profit of the
building, after suitable depreciation but before income and franchise taxes,
amounted to $1,328,822.45. This represents a return of 5.16% Per annum
on the book value above stated.
For accounting purposes there is included in the gross income of the
building $1,033,064.69 for space occupied by the company. (This amount
is included in operating expenses in the table appearing on page 10.)
At the end of 1933, 93.89% of the total rentable area was occupied as
follows:
By the company
29.81%
By others
64.08%
93.89%
The remainder of bank buildings account ($147,500.04) represents the
net book value of the company's banking office in the Flatbush section of
Brooklyn.
The company is not committed to any fixed pension obligations, as it
has long been its policy to retire members of the official and clerical staff,
as warranted by age and length of service, on moderate annuities purchased
from insurance companies.
For 14 years, insurance protection against death and disability has been
provided at the company's expense under a group insurance plan for members of the official and clerical staff. The maximum amount payable to
the beneficiary of any member of the staff is $5,000. As of Dec. 31. the
official staff numbered 114, and the clerical staff 1,781. The cost of this
Insurance amounted in 1933 to $54,487.97.
Irving Trust Co. as Standing Receiver in Bankruptcy.
During 1933 the company continued to act as Standard Receiver in
Bankruptcy in this Federal District. It began accepting appointments as
receiver and trustee in bankruptcy proceedings and as receiver in equity
cases on Jan. 16 1929. Up to the close of 1933 it had been appointed in
5,450 bankruptcy proceedings and 125 equity cases. A statement of such
appointments by calendar years, and their status follows:
Calendar
Bankruptcy
Equity
Year.
Proceedings.
Cases.
1929
22
717
1930
1,073
37
1931
1,408
26
1932
35
1,389
1933
5
863
Total
Administration completed
5,450
4,735
125
79
Under administration,Jan.1 1934
46
715
Of the 715 bankruptcy proceedings under administration Jan. 1 1934,
52 were receiverships. no trustee as yet having been elected.
As to the remaining 663 bankruptcy proceedings and the 46 equity cases,
many are still in active administration. In most of them, however, administration has been completed, but closing is awaiting termination of
Pending litigation, disputes as to claims of creditors. &c.
All receivership work has been performed by a division of the company
especially organized for this purpose. The staff, all of whom are engaged
solely in the work of administering estates, has been selected almost entirely
from outside the company for their aptitude for this work.
Comprehensive reports setting forth results in detail were filed with the
Court on Nov. 30 1932, and Oct. 16 1933.
On a basis of cash receipts and expenditures, the Receivership division
sustained a net loss of $11,731.83 for the year 1933. This does not take
into consideration prospective fees or future expenses as to cases not yet
closed.
By a general order of the U. S. SupremdCourt,and by a rule of the U. S.
District Court for the Southern District of New York.and with the approval
of the U. S. Circuit Court of Appeals of this Circuit, the company is permitted to deposit with itself funds in bankruptcy cases under its administration. Pursuant to such authority, the company carries on deposit with
itself certain funds of bankruptcy estates. Estimated profits from these
deposits and from deposits of certain funds of equity estates under the
company's administration have averaged approximately $100,000 per year.
Last June. Congress authorized the Judiciary Committee of the House of
Representatives to conduct an inquiry into the administration of bankruptcy in the United States. A special subcommittee was designated for
New York and to it the company extended its full co-operation. ,,N A•
The Company's Stockholders.
Stock of Irving Trust Co. is held by investors residing in 46 States of the
Union, in the District of Columbia and abroad.
The following table shows the total number at the record date for dividends in December in each of the years indicated:
Year.
Tot.No.
Tot. No.
Year.
December 1927
56,232
8,721 December 1930
December 1928
60,106
10,865 December 1931
December 1929(Dar value of stock
December 1932
66,123
changed from
68,713
December 1933
$100 to 810)_ _ - 50,035
Jesse Jones to Address New York State Bankers Association at Its Mid-Winter Meeting in New York City
on Feb. 5.
Jesse H. Jones, close advisor of President Roosevelt and
Chairman of the Board of the Reconstruction Finance Corporation will come to New York toaddress the mid-w
--—
iter
meeting of the New York State Bankers Association on Monday, Feb. 5, it is announced by George V.-111Aaughlin,
President of the Association.
—
This, it is stated, will be the first public addressMade Co
the New York bankingfraternity by any member of the
Roosevelt administration since the address of Professor A. A.
Berle, Jr., member of the "Brain Trust," at the convention
of the New York State Bankers Association last June.
'The meeting is an_annual mid-winter affair—
beginning
with
a luncheon at the Federal Reserve Bank,followed by a business session- in the Reserve Bank Auditoriumand concluding
with a banquet at the Hotel Roosevelt in the evening at
which Mr. Jones will speak. The chief topic of interest at
the afternoon session, in view of the hearing to be held by
General Johnson on Feb. 16, will probably be the discussion
Jan. 27 1934
of the present status of the Bankers' NRA Fair Practice Code
to be led by William K. Payne, Chairman of the National
Bank of Auburn, N. Y., and aide to the A. B. A. Banking
Code Committee. Vincent Dailey, chief lieutenant of Postmaster General James J. Farley in New York State and
manager of the New York office of the Home Owners Loan
Corporation will also be a speaker and will describe the
Operations of that institution. Mr. McLaughlin, who is
president of the New York State Bankers Association and
president of the Brooklyn Trust Company, will preside and
address the meeting on Federal Legislation and immediate
bankling problems. Arthur W. Loasby, Chairman of the
First Trust & Deposit Company,Syracuse, N.Y., will deliver
a report of the association's committee which has been studying banking measures proposed in New York State.
Annual Election of Officers of Corporate Fiduciaries
Association of New York City—J. A. Burns, VicePresident of Chase National Bank, President.
At the annual meeting of the Corporate Fiduciaries Association of New York City, an organization comprising the
banks anizU trust:companies doing a trust business, held
Jan. 22, officers for the ensuing year were elected as follows:
President: John A. Burns, Vice-President, The Chase National Bank.
Vice-President: Henry A. Theis, Vice-President, Guaranty Trust Co.
Secretary and Treasurer: F. K.Bosworth, Assistant Vice-President, Empire
Trust Co.
The following were elected members of the Executive
Committee:
Foster W.Doty, Vice-President, Commercial National Bank & Trust Co.
Charles Eldredge, Vice-President. Bank of New York & Trust Co
J. Lawrence Gilson, Vice-President Manufacturers Trust Co.
Arthur N. Hazeltine, Vice-President, Marine Midland Trust Co.
W. P. Johnson, Vice-President, Irving Trust Co.
William C. Murphy, Vice-President, The Fifth Avenue Bank.
Stewart C. Pratt, Vice-President, City Bank Farmers Trust Co.
William A. Read. Vice-President, Central Hanover Bank & Trust Co.
H. F. Whitney, Vice-President, Empire Trust Co.
The annual meeting was preceded,by a dinner at which
institutions belonging
more than200 representatives of
to the Associationwere present. Mr. John E. Zimmerman,
President of the United Gas Improvement Co., delivered an
address on "Fair Play for the Public Utility."
Changes in Capital Structure of Chase National Bank
of New York—Stockholders to Act on Proposals
Feb. 27—Sale to RFC of Portion of $50,000,000
Preferred Stock Not Purchased by Stockholders—
W. W. Aldrich, Chairman, Says Likelihood of
Special Voting Rights Becoming Vested in Preferred Stock Seems Remote.
In advising stockholders of a special meeting on Feb. 27
to act upon the proposed changes in the capital structure
of the Chase National Bank, Winthrop W. Aldrich, Chairman of the Board of Directors, comments upon the proposal
"to sell to the Reconstruction Finance Corporation so much
of the proposed issue of $50,000,000 of preferred stock as is
not subscribed for and purchased by shareholders." The
contemplated readjustment of the capital of the Chase National has heretofore been referred to in these columns—
Dec. 30, page 4616 and Jan. 13, page 270, the last named item
having to do with the annual report of Mr. Aldrich. In addition to the proposed issuance of $50,000,000 of preferred
stock, it is also planned to reduce the common capital of the
bank from $148,000,000 to $100,270,000, the latter, as Mr. Aldrich explains, "to be accomplished not by reducing the number of Shares of common stock outstanding, but by reducing
the par value of each of such share from $20 a share to
$13.55 a share." In his letter of Jan. 22 to the stockholders
of the bank, Mr. Aldrich states that, "in spite of a definite
published statement of the President of the United States to
the contrary, there seems still to remain in the minds of many
the feeling that the sale by a bank of preferred stock to the
Reconstruction Finance Corporation will place in that Corporation undue control over the affairs of that bank and that
such undue control may be exercised to the detriment of the
interests of holders of common stock."
Mr. Aldrich notes, "that with the proposed recapitalization
of this bank the likelihood of double or special voting rights
becoming vested in the preferred stock would seem to be remote." He also says "that until sucdh double or special voting rights arise, a share of common stock with a par value
of $13.55 (of which there are 7,400,000 in number), is entitled
to the same vote in the election of directors as a share of
preferred stock of the par value of $20 (of which there will
be only 2,500,000 shares).
Mr. Aldrich further points out "that the authorized number of directors cannot be reduced under any circumstances
Financial Chronicle
Volume 138
without the consent of a majority in number of the shares
of common stock." In full the letter of Mr. Aldrich follows:
THE CHASE NATIONAL BANK
of the City of New York
January 22 1934.
To the Shareholders:
There is enclosed herewith a notice of the special meeting of the shareholders of this Bank called to be held on Tuesday, February 27 1934, for
the purpose of voting upon the recapitalization plan recommended to the
shareholders by the Board of Directors, involving the creation and issuance
of $50,000,000 5% cumulative preferred stock of the Bank and the reduction of the common capital of the Bank from $148,000,000 to $100,270,000,
the latter to be accomplished not by reducing the number of shares of
common stock outstanding, but by reducing the par value of each such share
from $20 a share to $13.55 a share. It is proposed to sell to the Reconstruction Finance Corporation so much of this issue of $50,000,000 of preferred
stock as is not subscribed for and purchased by shareholders. In the Report
to shareholders, which was presented and read at the annual meeting on
January 9, and has been mailed to shareholders, this recapitalization plan
was discussed at length and reference was there made to this special meeting
now called.
Annexed to the formal notice of this special meeting is the text of the
proposed amendments to the Articles of Association, containing among other
things the terms and provisions governing the proposed preferred stock.
The Comptroller of the Currency and the Federal Reserve Board, which
have jurisdiction in the matter, have given their approval to this plan of
recapitalization on condition that the capital in the amount of $47,730,000
released through the reduction in the par value of the shares of common
stock be applied to the charging off or writing down of certain assets of the
Bank without distributing them or their proceeds to shareholders and that
such assets remain the property of the Bank.
Heretofore large unallocated reserves have been established, and the gross
amounts of certain asset classifications on the published balance sheet of
the Bank have been reduced accordingly. Through write-downs and chargeoffs, made possible by the reduction in the common capital stock a portion of these unallocated reserves will be released, and it will be possible
to show on the published balance sheet a sum of approximately $14,000,000,
to be carried as a reserve for contingencies.
The results of the re-adjustments upon the capital structure of the Bank
will be substantially as follows:
Preferred stock
Common stock
Surplus (as at present)
Undivided profits (approximately)
$ 50,000,000
100,270,000
50,000,000
9,000,000
$209,270,000
Reserves for contingencies will be shown at approximately $14,000,000, in
addition to the then existing balance in this account.
It is not necessary to repeat here in full the discussion contained in the
recent Annual Report in reference to this plan of recapitalization, but there
are certain considerations which should perhaps be emphasized.
In spite of a definite published statement of the President of the United
States to the contrary, there seems still to remain in the minds of many
the feeling that the sale by a bank of preferred stock to the Reconstruction
Finance Corporation will place in that Corporation undue control over the
affairs of that bank and that such undue control may be exercised to the
detriment of the interests of holders of common stock. It should be noted
In this connection, first, that with the proposed recapitalization of this
Bank the likelihood of double or special voting rights becoming vested in
the preferred stock would seem to be remote; second, that until such
double or special voting rights arise a share of common stock with a par
value of $13.55 (of which there are 7,400,000 in number), is entitled to
the some vote in the election of directors as a share of preferred stock of
the par value of $20 (of which there will be only 2,500,000 shares) ; third,
that the authorized number of directors can not be reduced under any circumstances without the consent of a majority in number of the shares of
common stock ; fourth, that the cases where class voting is required (Clause
10 of Article Fifth of the proposed Amendments to the Articles of Association) involve no matters affecting the normal management and operation
of the Bank and contemplate only situations where the preferred stock may
quite properly require protection from possible unfair treatment by the
common stock; fifth, that holders of common stock have the right fully
to preserve their present voting position by purchasing preferred stock and
that the Reconstruction Finance Corporation has only such voting power
as is vested in the shares which it actually acquires; sixth, that the only
time when this preferred stock can obtain double or special voting rights is
when an event has occurred which -might tend to jeopardize the investment
and that in such event it is quite proper and customary to provide for as
great or greater voting rights to preferred stock than are here granted ; and
finally, that in the last analysis if the Reconstruction Finance Corporation
should ever obtain voting control over the management of the Bank by
reason of the occurrence of one or more of the named events which might
tend to jeopardize its investment, one can only assume that the Reconstruction Finance Corporation would be intent upon management and operation
of the Bank designed to protect and preserve such investment, and that
such action should be of benefit to the common stock as well as of benefit
to the preferred stock.
As to the cost to the Bank of the money received for the preferred stock
(which will be 4% per annum upon preferred stock taken by the Reconstruction Finance Corporation and retired within three years), it is the judgment
of the Board of Directors that such cost is compensated for by the potential
advantage to the Bank and to the holders of common stock in having available these additional capital funds for future use. We are reliably informed
that the cost of the money received from the sale of capital notes to the
Reconstruction Finance Corporation by the larger state banks and trust
companies in this community is substantially the same, namely, a minimum
interest rate of 4% per annum, subject to increase to 5% per annum (in
many cam retroactively), as to that portion of the principal as is not paid
off by a certain time.
As preferred stock is retired the common shareholders' interest in the
capital of the Bank is correspondingly increased and it should be noted that
the amendments to the Articles of Association permit this increased interest
to be evidenced by a stock dividend either by the issuance of additional
shares of common stock or by an increase in the par value of each share of
existing common stock.
A continuance of the earnings of the Bank at anywhere near the rate of
earnings for 1933, if, as may now be reasonably expected. the Bank is not
625
required to set aside any considerable additional reserves out of such future
earnings, will provide ample margin not only for fulfilling the requirements
for the service of the preferred stock but for paying dividends upon the
common stock and for retiring the preferred stock at a rate in excess of a
minimum of $2,500,000 a year.
The Board of Directors has recommended this plan of recapitalization after
most careful deliberation and after weighing carefully all known considerations. It believes that the terms and provisions of the preferred stock including the provisions as to voting rights are fair to the Bank and to the
holders of common stock; that the additional capital funds thus to be procured will be of benefit to the Bank; that the present opportunity of obtaining such additional capital funds should be taken advantage of; and
that the reduction in common capital and the issuance of this preferred stock
will place the Bank in a strong position to continue payment of dividends
upon the common stock.
In view of the fact that a net dividend of only 4% per annum is payable to the Reconstruction Finance Corporation upon so much of this preferred stock as is purchased by it and retired within three years, there is
no financial advantage to the Bank in this preferred stock being subscribed
for by its present shareholders. On the other hand, the Board of Directors
desires to offer all of this stock for subscription to shareholders on a basis
which will afford to such shareholders who are attracted by the investment,
or feel desirous of preserving a voting position, the opportunity to invest
in this stock to the fullest possible extent.
Exact pro rata rights to subscription would give to each shareholder the
right to subscribe for •25/74ths of a share of this preferred stock for each
share of common stock held by him. This is an unwieldy fraction. In the
belief that a number of shareholders will not subscribe for this preferred
stock, the Board of Directors have determined to offer this stock to shareholders of record February 13 1934 on the following basis: each such shareholder desiring to subscribe, may subscribe in his own name for such whole
number of shares as he desires, whether more or less than his exact pro rata
portion, at the price of $20 per share. If the aggregate amount of such
subscriptions received exceeds $50,000,000, then all subscriptions will be
scaled down proportionately. If such pyoportionate scaling down becomes
necessary and any fractions would result thereby, such fraction of a share
will be resolved in such manner as to give to each subscriber so scaled down
the nearest number of whole shares so as to avoid fractions. In no event,
however, will a subscription by a shareholder be reduced below the exact
pro rata amount to which he is entitled as a shareholder of record on February 13 1934.
This right to subscribe will expire 3 P. M. March 14 1934. The full subscription price will be payable in cash or in New York funds at or before
3 P. M. on March 14 1934. A form of subscription blank is enclosed herewith for your convenience if you desire to subscribe for preferred stock.
The plan of recapitalization requires the approval of two-thirds of all the
outstanding shares. Unless you expect to attend the meeting, you are requested to sign the enclosed proxy and to return it promptly in the enclosed envelope in order that your stock may be voted at the meeting.
Very truly yours,
WINTHROP W. ALDRICH,
Chairman of the Board of Directors.
The following is the notice to the stockholders regarding
the special meeting on Feb. 27:
To the Shareholders:
Notice is hereby given that a Special Meeting of the shareholders of The
Chase National Bank of the City of New York will be held at its banking
house, Number 18 Pine Street, in the Borough of Manhattan, City, County
and State of New York, on February 27 1934, at 12 o'clock noon, to vote
and act on the following propositions:
(1) To decrease the present capital stock of the Association from $148,000,000 to $100,270,000 par value of common stock, to be effected by reducing the par value of the presently outstanding shares of common stock
from $20 to $13.55 each;
(2) To apply the total amount of capital so released to writing down or
writing off assets, without making any distribution or return to shareholders, such assets to remain the property of the Association as prescribed
by the Comptroller of the Currency and the Federal Reserve Board;
(3) To increase the capital stock of the Association in the sum of $50,000,000 by the creation and issue of that amount in par value of 5% cumulative preferred stock consisting of 2,500,000 shares of the par value of $20
a share, under the provisions of the Act of Congress of March 9 1933, as
amended, which preferred stock shall not be accompanied by or transferable
with stock of The Chase Corporation (formerly Chase Securities Corporation) in any manner provided in any existing agreement;
(4) To provide that the respective terms and provisions of such preferred
stock and of such common stock shall be substantially as set forth in the
proposed amendments to the Articles of Association hereto attached and
made a part hereof (subject to such changes therein as the Board of Directors
of the Association may submit to such meeting or to any adjournment thereof);
(5) To amend the Articles of Association as follows: by amending articles
Second, Third, Fourth, Fifth, Sixth and Seventh thereof; by adding thereto an article to be known as Article Eighth; and by inserting in place of
the present Article Eighth an Article Ninth so that said Articles shall respectively read substantially as set forth in the said proposed amendments
attached hereto as aforesaid, but subject, as aforesaid, to such changes therein as the Board of Directors may submit to said meeting or to any adjournrnent thereof;
(8) To ratify and confirm or to approve all action taken or to be taken
by the Board of Directors in reference to offering said 5% cumulitive pre!erred stock for Subscription to the shareholders of the Association at the
par value thereof and accrued dividends, if any, and in reference to arranging to sell the said preferred stock to the Reconstruction Finance Corporation at the same price insofar as not subscribed and paid for by the
shareholders; and
(7) To ratify, and confirm or to approve all action taken or to be taken
by the Board of Directors or the appropriate officers of the Association in
connection with or incidental to any of the foregoing matters;
and to transact such other business as may properly come before the meeting or any adjournment thereof.
The stock transfer books will remain closed on February 13 1934, and
thereafter until the final adjournment of said meeting.
•
By order of the Board of Directors,
WINTHROP W. ALDRICFI,
Chairman of the Board of Directors.
WILLIAM H. MOOREHEAD.
Cashier.
626
Financial Chronicle
Reopening of Closed Banks for Business and Lifting
of Restrictions.
Since the publication in our issue of Jan. 20 (page 449),
with regard to the banking situation in the various States,
the following further action is recorded:
CALIFORNIA.
The Anaheim First National Bank, Anaheim, Calif., was
ordered closed Jan. 16 by the Comptroller of the Currency,
according to a dispatch by the Associated Press on that
date from Anaheim, which furthermore said:
J. V. Hogan was named receiver in charge. The bank has been under
the direction of a conservatorship since the bank holiday last year. It
has deposits of approximately $350,000, and $50,000 in new accounts
have been added under the conservatorship, it was announced.
CONNECTICUT.
Judge John R. Booth of the Superior Court on Jan. 25
forbade George N.Foster, receiver for the closed Commercial
Bank & Trust Co. and the American Bank & Trust Co. of
Bridgeport, Conn., to make repayments to the Reconstruction Finance Corporation on a loan of $2,054,369 to the
closed banks, pending a hearing of depositors' protests on
Feb. 6. The receiver was planning to pay $30,000 due on
the RFC loan. Bridgeport advices on the date named to
the New York "Times," reporting the matter, furthermore
said:
Counsel for depositors claims that the loan was illegal because mortgages,
which the bank was holding in trust for depositors, were given as collateral.
The depositors' group holds that the RFC loan should be considered as
a creditors' obligation and paid off at the rate of dividend to depositors and
other accounts in the closed banks.
ILLINOIS.
The appointment of a receiver for the West Side Trust &
Savings Bank of Chicago, Ill., which has been closed since
the banking moratorium last March, is indicated in the
following taken from the Chicago "News" of Jan. 16:
Appointment of a receiver for the West Side Trust St Savings Bank,
with deposits of approximately $4,000,000. does not mean the ending of
plans for reorganization, according to the State Auditor's office. Depositors
and stockholders will be given an opportunity to present a plan which
will be satisfactory, it was declared.
Indignant depositors of the bank met at 928 South Halsted Street this
morning (Jan. 16) and charges were made that the appointment yesterday
of William L. O'Connell as receiver for the bank has defeated a comprehensive reorganization plan through which all of the 24,000 deposits with
accounts of less than $50 were to be paid off in full and those with larger
amounts receiving 40% in cash, the remainder was to be paid after orderly
The plan provided for the assessment of stockholders to the extent of
$400,000 and the raising of $350,000 additional capital for the formation
of a National bank. A loan of $2,100,000 from the Reconstruction Finance
Corporation had been arranged. It also provided for the appointment
of a liquidator, but the Attorney-General ruled that the State's banking
laws provide merely for a receiver, not a liquidator.
MARYLAND.
The State Bank Commissioner for Maryland, John J.
Ghinger, as receiver of the defunct Central Trust Co. of
Frederick, Md., on Jan. 20 filed a petition in the Circuit
Court asking the Court to enter a terminating order for the
receivership, which had lasted since the bank closed nearly
.two and a half years ago. Mr. Ghingher also asked the
Court to approve the plan of reorganization which he himself
approved on Nov. 24, last. Advices from Frederick on
Jan. 20 to the Washington "Post," from which the foregoing
is learnt, continuing said:
The petition, filed by former Judge John S. Newman, counsel for the
receiver, was accompanied by a report of the depositors who have objected
to the plan and who have asked for a fair liquidating value of their deposits.
The receiver asks that the Court fix these values. Payment of these sums
would be one of the final steps to be taken by the receiver.
The report shows the dissenting depositors had deposits totaling $565,342.14, or 3.6% of the total amount on deposit, which was in excess of
$15,700,000.
Included in the deposits of objectors is $158,050, a purported claim of
the Finance Company of America. The receiver states that he will dispute
this claim as not being valid. The company filed objection to protect whatever rights it might have.
The reorganization plan was approved by depositors representing more
than 25% of the total deposits. An amendment to it, submitted by the
depositors' committee, was approved by the State Banking Commissioner
Jan. 16, he states.
The depositors' committee comprises William J. Grove, W. Clinton
McSherry, Ernest L. Shriver, Claude Wilt, John W. Holter, Arthur C.
Brown, Upton Grossneckle, Albert S. Bitler and G. Robert Gray. The
plan of reorganization calls for establishment of a central bank at Frederick
and branches at Middletown, Walkersville, Sykesville, Monrovia and
Poolesville.
MICHIGAN.
In regard to the affairs of the closed United States Savings
Bank of Port Huron, Mich., a dispatch from that place on
Jan. 22, appearing in the Detroit "Free Press" contained the
following:
News was received in Port Huron on Jan. 22 from Washington that the
Reconstruction Finance Corporation had granted the closed United States
Savings Bank here a second loan of $596,000, which will enable the bank
to retire the present RFC loan, release 40% to depositors and enable the
bank to reopen in the near future.
An order permitting the Guardian Bank of Trenton,
Trenton, Mich., to reopen was signed on Jan. 22 by Circuit
Jan. 27 1934
Judge Adolph F. Marschner on the motion of Attorney General Patrick H. O'Brien. The move had the approval of
Governor William A. Comstock and the Michigan State
Banking Commissioner, Rudolph E. Reichert. The Detroit
"Free Press," of Jan. 23, authority for the above, went on
to say:
No objections to it were made at the hearing. Approximately 85% of
the depositors of the bank have joined in the plan, which provides for payment in full to 1,500 small depositors, accounts ofschool children, and school
organizations.
• Trust deposits will be disposed of either by paying them out, or by obtaining consent of trust depositors to transfer them to the reopened bank.
An agreement to accept a 50% payoff and "freeze" the remainder temporarily has been obtained from the bank's 900 large depositors.
The reopening is being handled by the Trenton Depositors' Corp..
organized with 300 shares at $100 each. A loan of $84,000 from the RFC
made possible the reorganization.
NEW JERSEY.
Eugene M. Clark, conservator of the First National Bank
of Carteret, N. J., announced on Jan. 25 that he had received Federal sanction to open the bank on an unrestricted
basis as soon as possible, according to advices from that
place to the New York "Times," which added:
The Government, he said, will invest in 200 shares of stock in the new
institution. The opening will make available 50% of the deposits of more
than 4,000 persons.
NEW YORK STATE.
The Fidelity National Bank in New York, Elmhurst
(Borough of Queens), N. Y. City, organized to succeed
the Elmhurst National Bank, Elmhurst, and the Newtown
National Bank of Corona (Borough of Queens), New York
City, has been chartered by the Comptroller of the Currency
and is to open to-day (Jan. 27). The New York "Herald
Tribune" of Jan. 25, from which this is learnt, went on to
Say:
•
The main office of the new bank will be at 43-33 91st Place. Elmhurst,
and it will have a branch office at 37-01 Junction Boulevard, Corona.
The authorized capital will be $200,000 and the surplus $40,000. The stock
has been distributed among more than 1,600 subscribers. The bank is
a member of the Federal Deposit Insurance Corporation
The President is John P. Gering, and the Vice-Presidents are Thomas
G. Sperling, James V. McGarry and John R. Simken. William A. Bertsch
is Cashier and Charles E. Schwagerl Assistant Cashier. Besides the President and Vice-Presidents, the directors include Thomas F. Hanley, Herman
Hinge and William G. Meyer.
The First National Bank of New Rochelle, N. Y., successor to the National City Bank of New Rochelle, opened its
doors for business on Jan. 22. While there were throngs
of depositors in the building, officials announced that withdrawals were surprisingly small. Old depositors found
30% of their funds available. There was $1,350,339 cash
on hand. Other assets of $2,202,056 have been declared
to be sound. In reporting the opening of the institution,
advices to the New York "Times" went on to say:
The opening surprised the 11,000 depositors of the National City, who
had been led to believe by the delays in Washington that the opening would
be later.
Officers of the new bank, as appointed by the directors several weeks
ago, are E. H. Watson, President; Leroy Frantz, Vice-President; William
S. Shea Trust Officer, and E. Milton Berry. Cashier.
Concerning the affairs of the closed Westchester Trust
Co. of Yonkers, N. Y., the following was contained in a
White Plains dispatch on Jan. 20 printed in the New York
"Herald Tribune":
Supreme Court Justice Frederick P. Close granted permission here to-day
(Jan. 20) to State Superintendent of Banks Joseph A. Broderick, as holder
of the assets of the Westchester Trust Co., to borrow $2,980,000 from the
Reconstruction Finance Corporation against some of the slow assets of
the trust company. The money is to be borrowed so that the trust company can be reorganized and opened as the Citizens Trust Co.
The State Superintendent is empowered to borrow the money under
Section 69-A of the State Banking laws.
Some depositors had objected to the plan on the ground that they would
get a greater percentage on their deposits in a simple liquidation.
The Justice stated, however, that the State Superintendent approves the
plan as for the best interests of depositors and that, while at present he
does not promise more than 50 cents on the dollar to depositors, a binding
agreement will be made later.
NORTH CAROLINA.
The Bank of Davie, Mocksville, N. C., reopened for
business on Jan. 18 with approximately $200,000 in deposits
insured by the Federal Insurance Deposit Corporation.
The opening of the bank, announced in Raleigh by Gurney?.
Hood, State Commissioner of Banks for North Carolina,
was the result of a reorganization since the bank holiday.
The Raleigh "News & Observer" of Jan. 19, from which
this is learnt, went on to say:
The bank now has preferred capital of $20,000, common capital of
$50,000 and surplus of $25,000. E. L. Gaither is President, and S. M.Call,
Cashier. The bank is the 195th to be licensed by the State Departmem
since the holiday.
OHIO.
The probable reopening shortly of the Citizens' Banking
& Savings Co. of Conneaut, Ohio, is indicated in the following dispatch from that place on Jan. 16, printed in the
Cleveland "Plain Dealer":
•
Early reopening of the Citizens Banking & Savings Co. was looked for
to-day (Jan. 16) when it was announced that examiners would arrive
to-morrow or Thursday to begin their work. When the report is approved by State and Federal banking authorities, the bank will be ready
to obtain its license to reopen. The Citizens' has been under restrictions
since the banking holiday last March.
That plans are under way for the reopening shortly of
two Elyria, Ohio, banks—the Elyria Savings & Trust Co.
and the Savings Deposit Bank—would appear from the
following dispatch from that place on Jan. 17, printed
in the Cleveland "Plain Dealer":
Tentative approval by the RFC of a loan which will permit the licensing
of the Elyria Savings & Trust Co. was announced here to-day by Robert
Rice, attorney, and member of a committee which has been working to
open the bank.
The plan for reopening provides for the release of 50% of the bank's
deposits, which total approximately $3 400,000, and the signing of waivers
by depositors for the balance.
Approval of this same plan for reopening is expected daily by the Savings
Deposit Bank, Elyria's other closed bank, it was announced by J. B.
Seward, President and Conservator. The Savings Deposit Bank has
$2,850.000 of deposits. Both institutions have been operating on a restricted basis for the past 11 months.
One of the important factors in raising cash for reopening the banks
Is the negotiation of loans through the Home Owners Loan Corporation.
It was announced. The more liquid of the real estate loans will be turned
over to this Corporation for its bonds which in turn may be used as colateral for cash.
The more "frozen" securities will be turned over to a mortgage loan
company managed by a board of directors, the majority of which will be
depositors of the bank.
This mortgage company will borrow from the RFC on the assets it
takes over and the cash from this loan will be used to discharge the present
obligations of the bank and to provide additional cash for the reopened
bank, Rice explained. It was the loan on these assets which has been
tentatively approved, Rice said.
Advices from Columbus, Ohio, on Jan. 16 by the Associated Press reported that the Morral Banking Co. at
Morral, Marion County, Ohio, was closed for liquidation
on that date by Ira J. Fulton, State Superintendent of
Banks for Ohio. The dispatch added:
The institution has been In the hands of Conservator Dwight Mehaffey
since the March banking holiday.
The advices furthermore stated that the Mechanics'
Banking Co. at Bradner, Wood County, Ohio, was also
closed for liquidation. The latter bank had deposits of
$106,020, it was said.
The George D. Harter Bank of Canton, Ohio, reorganized
14 months ago, on Jan. 17 announced the lifting of restrictions on all accounts, making a total of $8,900,000 available
to the depositors, according to advices from that city on
Jan. 17, appearing in the Cleveland "Plain Dealer," which
furthermore said:
At the same time the bank announced the Reconstruction Finance Corporation had purchased $1,500,000 of its capital debentures. Money
realized from this sale will be added to the capital structure of the bank.
A total of $5,300,000 in certificates of deposit which had been under
restriction were automatically transferred to Federal insurance guaranteed
savings accounts. This together with $3,600,000 in new accounts brings
the total of freed deposits to $8,900,000.
It was announced that the Federal insurance on accounts up to $2,500
covered 98% of the bank's depositors.
PENNSYLVANIA.
The Freeport Bank & Trust Co., Freeport, Pa., which
had been operating under restrictions since March 4 last,
was to reopen on Jan. 17 under a new charter granted by
Dr. William D. Gordon, State Secretary of Banking for
Pennsylvania, releasing more than $500,000 in deposits,
according to a Freeport dispatch to the Pittsburgh "PostGazette," which went on to say:
The bank will be called the Old Freeport Bank with a capital of $50,000
surplus of $25000, undivided profits of $3,300 and total deposits of approximately $500,000.
The depositors of the Freeport Bank & Trust Co. waived one-third of
their deposits taking capital stock in the Old Freeport Bank in return.
Concerning the affairs of the closed State Bank of Elizabeth, Elizabeth, Pa., the Pittsburgh "Post-Gazette" of
Jan. 16 had the following to say:
Reopening of the State Bank of Elizabeth is expected soon, it became
known yesterday (Jan. 15), as the bank announced election of a reorganized
board of directors and officers.
It was from this bank, operating on a restricted basis, that Miss Hazel
Weigel. Assistant Cashier, disappeared several months ago. Bank officers
said her present whereabouts remain a mystery. * * * President
B. E. Wylie and Vice-President A. G. Rothey were re-elected.
Dr. William D. Gordon, State Secretary of Banking for
Pennsylvania, has given tentative approval to a reorganization of four banks in Johnstown, Pa., and vicinity, under
which a new bank to be known as the Johnstown Bank &
Trust Co. would be formed. The four banks involved are
the Johnstown Trust Co., the United States Savings & Trust
Co. of Conemaugh, the Morrellville Deposit Bank, Johnstown, and the Johnstown State Deposit Bank. Associated
Press advices from Harrisburg, Pa., on Jan. 12, from which
the foregoing is learnt, went on to say:
"Acceptable assets" would be purchased from the four banks and used
as the nucleus of the new institution.
627
Financial Chronicle
Volume 138
The four boards of directors have given their approval and the negotiations have reached the stage where the attitude of depositors is awaited
Seventy-live per cent must approve before the project can be completed.
The structure of the new bank would be: Capital, $300,000, surplus.
$150,000. and expense fund. $15,000—a total of $465,000.
A dispatch by the United News from Harrisburg, Pa.,
on Jan. 15 stated that charters were issued on that day
for two new Pennsylvania State banks. The institutions
take the place of banks which have been operating on a restricted basis since the holiday last spring. They are:
The Bank of McKees Rocks, taking the place of the McKees Rocks
Trust Co. Capital stock, $100,000.
Farmers' & Merchants' Bank of Linesville, taking the place of the
LinesvMe State Bank. Capital stock, $50.000.
According to Associated Press advices from Harrisburg,
Pa., on Jan. .19, the Warren Bank & Trust Co., Warren,
Pa., organized to take over the assets of the Warren Savings
& Trust Co., has been chartered with capital stock of $300,000. Incorporators of the bank are W. W. Beatty, H. A.
Logan and F. B. Jackson.
VIRGINIA.
That the Clifton Forge National Bank, Clifton Forge, Va.,
will probably reopen soon is indicated in the following advices
on Jan. 21 from that place to the Washington "Post":
Reorganization plans of the Clifton Forge National Bank, closed since
last March, are progressing. according to L. F. Pendleton, conservator,
who said yesterday (Jan. 20) that of the $60,000 which must be raised by
the stockholders under a Treasury Department plan. 342.000 already has
been subscribed.
Failure of nearly one-third of the old stockholders to subscribe delayed
plans. After the stockholders have met requirements, depositors will be
asked to subscribe.
The proposed new bank will have a capital of $100,000 and a surplus
of $20,000. If the plan is perfected. 60% of the deposits of the Clifton
Forge National Bank are to be credited to old depositors without restrictions.
Early reopening of the National Bank of Crewe, Va., is.
indicated in the following appearing in the Richmond "Dispatch" of Jan. 12:
The National Bank of Crewe on Jan. 11 made application for reopening
on an unrestricted basis. It has subscribed $60,000, one-half of which is
new money.
Officers and directors will be named for the new institutiongis soon as
the charter is received from the comptroller of the currency, and the new
bank probably will be operating before Feb. 1.
WASHINGTON.
The following in regard to the affairs of the First National
Bank of Walla Walla, Wash., appeared in the Portland
"Oregonian" of Jan. 13:
A plan of reorganization for the First National Bank of Walla Walla,
approved Dec. 30 1933, by the Comptroller of the Currency, has been
sent to stockholders, depositors and other creditors, with request that
they waive legal interest against the bank on deposits and unsecured claims
since it closed Feb. 11 1933, accept certificates of participation for the
Interest due in the Wahluke Investment Co . an affiliate, and permit reopening of the institution with 100% of deposits unavailable. Seventy-five
per cent of the interest liability, representing about $80,000 in all, must
be waived, and officials have fixed 15 days from date for the reopening,
Provided the necessary waivers are In hand.
WEST VIRGINIA.
That the First National Bank of Monongah, West Va.,
had resumed business on an unrestricted basis under orders
received from the Comptroller of the Currency, was reported
in a dispatch from Clarksburg, W. Va., on Jan. 19 to the
Washington "Post," which continuing, said:
It had been on a restricted basis since the National banking holiday
last March.
John D. Anthony. conservator, resumed his position as Cashier, which
he filled for many years prior to the conservatorship.
WISCONSIN.
Beloit, Wis., advices on Jan. 15 to the Milwaukee "Sentinel" indicated that the Beloit Savings Bank of that place
would resume normal operations within a few weeks as a
result of the signing of the required number of waiver affidavits. We quote from the dispatch as follows:
Although only 80% of the bank's deposits had to be signed to insure
resumption of banking operations, holders of 84.2% of the deposits had
signed at noon to-day (Jan. 15), and the signers continued to come.
The number of depositors who signed agreements to leave 22.5% of their
deposits in trust was 3,705, and they have deposits totaling $2,602,084.
It is expected that about a month or six weeks will be required to comply
with the requirements for opening the bank on a stabilization plan, with
deposits guaranteed under the new Federal insurance plan.
ITEMS ABOUT BANKS, TRUST COMPANIES, &C.
The second membership in the New York Cotton Exchange
standing in the name of George A. Ellis, Jr., was sold Jan.
25 to Simon J. Shlenker for another at $19,750. This price
represents an advance of $1,550 over the previous sale of
Jan. 17.
Announcement was made this week by the City Bank
Farmers Trust Co. of New York of the appointment of H.F.
Mapplethorpe as Assistant Secretary.
Harold Wilkes Vanderpool, a Vice-President of the Chase
National Bank, New York City, died Jan. 21 at the age of
628
Financial Chronicle
58 years. During his business career Mr. Vanderpoel was
head of the credit department of H. B. Claflin & Co., dry
goods merchants; credit manager of the National City Bank,
and Vice-President of the National Park Bank. When the
National Park Bank merged with the Chase National Bank
Mr. Vanderpoel was appointed a Vice-President of the combined institution.
A proposal of the directors of the National Safety Bank &
Trust Co., New York City, to reduce the bank's common
capital stock from $1,428,600, consisting of 57,144 shares of
$25 par value, to $714,300, consisting of 57,144 shares of
$12.50 par value, was approved by the stockholders at their
annual meeting held Jan. 9. A proposal to sell $300,000 of
cumulative preferred stock, consisting of 24,000 shares of
$12,50 par value, to the Reconstruction Finance Corporation
was also ratified. The proposals of the directors were referred
to in our issue of Dec. 16 1933, page 4310.
A co-operative plan for providing retirement annuities for
officers and employees of the Chemical Bank & Trust Company of New York has been devised by Percy H. Johnston,
President, and approved by the Board of Directors of that
institution. The bank's announcement in the matter says.
All employees of the Dank are to be eligible to this protection and are to
participate in the program for providing the necessary retirement funds.
Retirement age for men is placed at 65 and for women at 60. However.
it is provided that these age limits may be modified by the Board of Directors if it is considered in the best interest of the employee and employer.
Only years of service dating from the 30th birthday of the employee are
to be considered in tabulating the amount of the retirement fund. The
average salary of each year beginning with the 30th and up to the date of
retirement will provide the basis of computation, the employee receiving
2% of the average salary for each year subsequent to his 30th birthday.
As an example, if an employee's earnings have averaged $5,000 per year
for 35 years and he retires at the age of 65, he will receive 2% of that
amount, or $100, multiplied by 35 (the number of years which figure in
his retirement service), or 33,500 per year for life. The plan, in general,
will provide an income of oetween 50% and 60% of the employee's annual
income at the date of retirement.
"It hae long been our desire," Mr. Johnston said in discussing the retirement plan, "to provide compensation for
the men and women who have faithfully and loyally served
this institution for a number of years." He added:
"We felt that the employees themselves should be given an opportunity
to participate in the building of this reserve, so that they would feel some
definite sense of responsibility of making this provision. The present plan
was adopted only after a careful survey of all existing methods of providing
annuities and with deep thought to the requirements of our personnel."
Jan. 27 1934
Assistant Trust Officers. The following were chosen members of the Executive Committee: Rufus K. Dryer, Chairman; Frank W. Lovejoy, Vice-chairman; James S. Watson,
F. Harper Sibley, Edward Harris, Jesse W. Lindsay and
Julius M. Wile.
The directors also declared the regular quarterly dividend of $5.00 per share payable Feb. 1 to stockholders of
record Jan. 30.
Effective Jan. 9 1934, The Claremont National Bank,
Claremont, N. H., with capital of $100,000, was placed in
voluntary liquidation. It has been succeeded by the Claremont National Bank.
The National Tradesmens Bank & Trust Co. of New Haven,
Conn., with capital of $500,000 went into voluntary liquidation on Jan. 15 last. It is succeeded by the Tradesmens
National Bank.
Two promotions were made in the personnel of the National
State Bank of Newark, N. J., at the directors- annual
meeting last week, according to the Newark "News" of
Jan. 12. William S. Leonard, formerly Cashier, was made
a Vice-President, and Will A. Theuer, heretofore an Assistant
Cashier, was chosen Cashier in lieu of Mr. Leonard. Mr.
Leonard entered the employ of the institution as a messenger in 1888 and after serving in all departments was
appointed an Assistant Cashier in January 1918, and in
1931 given the Cashiership from which he has now been
advanced to a Vice-President. Mr. Theuer obtained "a
temporary position" with the bank in 1890. In the intervening time he has served in all departments of the institution, in later years having charge of the loan and discount
departments. He was made an Assistant Cashier in 1931,
the office from which he has now been promoted to the
Cashiership.
Isaac- Bates Grainger, former Executive Vice-President
of the North Carolina Bank & Trust Co. at Greensboro,
N. C., has been elected President of the Montclair Trust
Co., Montclair, N. J., to succeed Adolph J. Lins, who
retired recently because of ill health, according to Montclair
advices on Jan. 12 to the New York "Times." The trust
company also announced the election of Benjamin V.
Harrison as Chairman of the Board of Directors. Frederic
P. Fiske, who has been with the Guaranty Co. of New York
since 1921, was appointed Vice-President of the trust
company.
The New York Agency of the Bank of Montreal (head
office, Montreal, Canada) at 64 Wall St., this year reaches
the 75th milestone of its establishment in this city. The
office was opened in 1859 to facilitate the then rapidly growing
According to the Newark "News" of Jan. 12 the directors
trade between the United States and Canada, and in the
intervening three-quarters of a century it has assumed a of the Bank of Montclair, Montclair, N. J., on Jan. 11
leading role among the foreign banking agencies in this appointed Personette G. Baldwin Cashier of the institution
city. In 1918 the Agency of the former Bank of British and Kenneth L. Ketchum Assistant Cashier in charge of the
North America, an institutoin that had been represented Grove Street branch, formerly the Town Trust Co., which
in New York since 1843, was absorbed, and in 1922 the recently was merged with the Bank of Montclair.
Agency of the Merchants Bank of Canada, dating back to
Edward L. Howe, President of the Princeton Bank &
1875, was merged with the Bank of Montreal Agency,
thereby combining three of the oldest Canadian bank Trust Co., Princeton, N. J., announced at the stockholders'
annual meeting that the bank planned to increase its capital
agencies in New York.
from
$300,000 to $450,000 through the sale of preferred
Bank
of
Montreal
the
Agency
fact
that
interesting
It is an
is located on the site of the famous old buttonwood tree where stock in support of President Roosevelt's program to prothe first stock brokers in the United States met and con- vide banking capital adequate to meet the credit needs of
ducted the business of the day. The New York Stock the country, according to a Princeton dispatch to the
Exchange, which was formed in 1792 by the original stock New York "Times" on Jan. 9.
brokers under the buttonwood tree, first went indoors in
The First National Bank in Garfield, Garfield, N. J., was
1817, and it was in that year that the Bank of Montreal
was established in Montreal. A year later, in 1818, the chartered by the Comptroller of the Currency on Jan. 18.
bank appointed Prime, Ward & Sands its representatives The new bank with capital of $200,000 replaces The First
in New York, that being 41 years prior to the bank estab- National Bank of that place. B. N. Beaumont is President
lishing its own offices here. From a small one-room office and Gustav A. Lauffer, Cashier of the institution.
first located at 23 William St., the Bank of Montreal Agency
At the recent annual meeting of the directors of the
has grown until to-day it occupies five floors of its 11-story
Industrial Trust Co. of Philadelphia, Pa., John S. Bowker
building and annex at 64 Wall St.
resigned as Chairman of the Board and as a director of
At the annual meeting of the directors of the Security the institution because of ill health, according to the PhilaTrust Co. of Rochester, N. Y., on Jan. 18 the following delphia "Ledger" of Jan. 13. The vacancy in the Chairmanofficers were re-elected: James S. Watson, President; ship was left unfilled. J. Edward Schneider was re-appointed
Julius M. Wile, Edward Harris, Jesse W. Lindsay, Vice- President, and Harold IV. Frame was advanced to a VicePresidents; Carl S. Potter, Vice-President and Secretary; President, while retaining his former post of Treasurer,
William H. Stackel, Vice-President and Trust Officer, and It was stated.
George F. Stone, Treasurer, and new appointments made
Murdoch P. Claney, former Executive Vice-President of
as follows: Righard A. Zimmerman, Harvey W. Miller,
David Gales and Earl G. Hoch, Assistant Secretaries and the closed Merlon Title & Trust Co. of Ardmore, Pa., was
Schuyler C. Wells, Jr., Grace E. Howie, G. Morton Minot, sentenced to serve from two to five years in the Montgomery
Seward H. Case, Benjamin E. Lull and Eva M. Schreiner, County Prison on Jan. 12. In addition, he was ordered
Volume 138
Financial Chronicle
to pay half the costs of the trial, which total approximately
$2,000, and was fined $100. At the same time, David W.
Charles, formerly Assistant Treasurer of the institution,
escaped a jail sentence, being placed on probation for three
years, and being permitted to post bond guaranteeing payment of half the costs in the case. The Philadelphia
"Ledger" of Jan. 13, authority for the foregoing, continued
In part:
The sentences were read at Norristown by Judge George C. Corson,
before whom a jury found the two bankers guilty, last May, on numerous
charges involving misuse of the bank's funds. Mr. Claney was released
later in the day in $10,000 bail, pending an appeal to the Superior Court.
In releasing Mr. Charles, Judge Corson commented that "perhaps the
Court is erring on the side of mercy in your case, but there has been
grave doubt whether the jury should have convicted you. You were involved by Mr. Claney, your superior, and were under his control . . "
Counsel for the defendants charged that the "public clamor for victims"
after the collapse of banks, and the "undercurrent of prejudice against
bankers" was responsible for their conviction. . . .
Assistant District Attorney David E. Groshens denied there had been
any attempt to make "victims" of the two defendants, and recalled that he
had requested the jury to employ mercy in reaching its decision.
It was disclosed that Mr. Charles, who lives at Overbrook, Pa., holds
a position as chief disbursing officer for the Civil Works Administration
at Harrisburg. Mr. Claim', whose home is in Ardmore, is employed in
a bank at Newark, N. J.
Mr. Claney was found guilty on 48 bills of indictment, and Mr. Charles
on 12 charges, all involving use of banks funds in stock market dealings,
and the employment of "straws" for bank loans
The Board of Directors of the Tradesmens National Bank
& Trust Co. of Philadelphia, Pa., has declared a quarterly
dividend of $1.50 per share, at the rate of 6% per annum,
payable Feb. 1 1934 to stockholders of record at the close
of business Jan. 27 1934.
629
to subscribe to a proportionate share of either the first preferred or second preferred shares or both.
The first preferred shares to the amount of $4,000,000 to be
purchased by the RFC, subject to the right of purchase of
the present shareholders, will be in the form of 5% cumulative
first preferred shares, a total of 400,000 shares of the par
value of $10. The second preferred shares, to the amount
of $3,000,000, will be bought by certain banking institutions
in Philadelphia, subject to the right of present shareholders
to purchase. These shares will number 300,000, of a par
value of $10 and will carry dividends at 3% cumulative for
four years and 5% cumulative thereafter. These shares will
be paid for from the deposits of certain associated banking
institutions in Philadelphia with the Integrity Trust Co.
Present shareholders of the Integrity Trust Co. will be asked
to convert their present holdings into new common shares on
a basis of one share for each three shares now held by the
shareholders.
After putting into effect these changes, the capital structure of the Integrity Trust Co. will be as follows:
Common shares cap
First preferred shares
Second preferred shares
Surplus
Undivided profits
Reserve for contingencies
$995.973.33
4,000.000.00
3.000,000.00
1,000.000.00
197.512.38
1.000.000.00
The Philadelphia "Ledger" of Jan. 23, from which the
above information is obtained, also said in part:
be held to act upon the various
L A special meeting of shareholders will
company's
Directors were re-elected for the ensuing year, except for
the seven
employee directors, who are changed every year.
plans for the acquirement
resolutions required to carry out the
of additional capital and for other purposes.
A statement signed by John Stokes Adams, Chairman of the board of
the Integrity Trust Co., reads as follows:
"A representative committee of the shareholders of the company has
taken an active part in the framing of the plan, and these shareholders, as
well as the directors and officers of the company are in favor of the proposed
measures.
"With the adoption of the plan the assets of the bank will be carried at
values from which recoveries may be expected with the return of normal
conditions.
"The Integrity Trust Co.is a member of the Federal Reserve System and
the Temporary Federal Deposit Insurance Fund."
The advancement of Charles W.Dahlinger from President
to Chairman of the Board of Directors of the Allegheny
Trust Co. of Pittsburgh, Pa., which he helped to organize
35 years ago, was announced on Jan. 18. Elmer E. Bauer,
who had been Executive Vice-President for a year, was
promoted to the Presidency to succeed Mr. Dablinger, while
Fred H. Horst, an employee of the bank for 28 years, was
made a Vice-President. The Pittsburgh "Post-Gazette" of
Jan. 19, from which the above information is obtained,
furthermore said in part:
Frank Stetson, heretofere Second Vice-President & Trust
Officer of the National Savings & Trust Co. of Washington,
D. C., was promoted to the position of First Vice-President,
while continuing as Trust Officer, as the annual meeting
of the directors on Jan. 15. Mr. Stetson succeeds the late
Woodbury Blair as First Vice-President. William B. Willard, a director, was made Second Vice-President in lieu
of Mr. Stetson. The personnel of the institution (according
to the Washington "Post" of Jan. 16, from which the foregoing is taken) is now as follows:
Mr. Dahlinger has been a figure in banking, legal and civic circles in
Pittsburgh for more than 50 years. Since his first job as bank messenger
he has held many positions. After helping to organize the Allegheny
Trust Co. in 1901 he assisted also in the absorption of the Nation's Bank
for Savings, an old Allegheny bank incorporated in 1871, and the
Third
National Bank of Allegheny, organized in 1875. Mr. Dahlinger served
as attorney for Allegheny Trust for 24 years and became President
when
Captain William B. Rodgers, Sr., died in 1925. . . .
Mr. Bauer is a native Pittaburgher and entered the banking
business
In 1905. He joined the Allegheny Trust Co. in Jan. 1938,
leaving the First
National Bank Sr Trust Co. of Tarentum, Pa.. where he had
been Cashier.
William D. Hoover. President; Frank Stetson, First Vice-President and
Trust Officer; William B. Willard, Second Vice-President; Frank R..
Ullmer, Treasurer; E. Percival Wilson, Secretary; Bruce Baird, David
Bornet, Assistant Trust Officers; Barnum L. Colton, Real Estate Officer;
John W. Calvert, W. Hiles Pardoe, Osmund L. Varela, Assistant Treasurers;
A. J. Fant, John M. Boteler, Herbert B. Lord, Assistant Secretaries;
Audley A. P. Savage, Auditor.
Stockholders of the Mitten Men & Management Bank &
Trust Co. of Philadelphia, Pa., at their annual meeting on
Jan. 17 approved a Change in the name of the institution
to the Mitten Bank & Trust Co., according to the Philadelphia "Ledger" of Jan. 18, which also stated:
The First National Bank in Tarentum, Tarentum,
Pa.,
was granted a charter by the Comptroller of the
Currency
on Jan. W. The new bank, which is capitalized at
$150,000,
consisting of $125,000 preferred and $25,000 common
stock.
succeeds the First National Bank & Trust Co. of
Tarentum.
C. L. Leydic and Frank C. Irvine are President and
Cashier,
respectively, of the new institution.
A charter was issued on Jan. 18 to the Scranton
National
Bank, Scranton, Pa. The new bank replaces
The Union
National Bank of that city and is capitalized at
$500,000,
consisting of $300,000 preferred stock and $200,000
common
stock. William McCulloch heads the institution and
Sebert
Wenzel is Cashier.
Announcement was made on Jan. 22 by the Integrity
Trust Co. of Philadelphia, Pa., that the directors of
the
company had completed plans for the addition of $7,000,000
in cash to the capital of the institution. Of this new
capital,
$4,000,000 will represent a purchase by the Reconstruction
Finance Corporation of that amount of first preferred
shares
and $3,000,000 will represent a purchase of that
amount of
second preferred shares by certain banking institutions
in
Philadelphia. The plans for these additions to the capital
of the company have been appoved by Dr. William D.
Gordon, Secretary of Banking for Pennsylvania. Present
holders of shares in the integrity Trust Co. have the privilege
We learn from the Richmond "Dispatch" of Jan. 17, that
sale of $700,000 preferred stock to the Reconstruction
Finance Corporation, recommended by the directors of the
Virginia Trust Co. of Richmond, Va., was approved at the
annual meeting of the stockholders on Jan. 16. The company's capital structure will now be as follows: Preferred
stock $700,000; common stock, $500,000; surplus and undivided profits, $350,000; reserves, $60,000. Through issuance of the preferred stock, the company's capital was
increased from $1,000,000 to $1,200,000. At the directors'
meeting Preston B. Watt, heretofore Trust Officer, was
made a Vice-President while continuing :is Trust Officer,
and W.Bradford Ryland was named an Assistant Treasurer.
The personnel of the institution is now as follows:
Herbert W. Jackson, President; Walker Scott, Jaquelin P. Taylor and
Preston B. Watt, Vice-Presidents; Ernest M. Long, General Counsel;
Alexander B. Dickinson, Counsel; Lewis D. Aylett, Secretary; William B.
Jerrnan, Treasurer; Charles Watkins, Manager bond department; J. Morris
Carter, Jr., and Oscar Upshur, Assistant Secretaries and John R. Wilson,
Samuel S. Jackson and W. Bradford Ryland, Assistant Treasurers.
Charlottesville, Va., advices to the Richmond "Dispatch"
on Jan. 11 reported that Dr. W. Dan Haden, a member of
the Charlottesville City Commission, had been elected
President of National Bank & Trust Co. of that city at
the directors' recent annual meeting, succeeding N. T. Shumate. Other changes in the bank's personnel, it was said,
were the appointment as Cashier of Z. P. Miller in place of
H.E.Dinwiddie, who was named Manager of New Business,
and the appointment of W. A. Gibson as Assistant Cashier.
The dispatch continued:
630
Financial Chronicle
C.T. O'Neill is Active Vice-President of the bank. Other Vice-Presidents
are: John Livers, J. Y. Brown, J. D. Tillman, P. H. Faulconer and E. A.
Joachim. Hollis Rinehart was re-elected Chairman of the Board.
k Dr. Haden, who is a physician by profession, is also a leading figure in
business circles of Charlottesville. . .
C. Grattan Price, insurance man and civic leader, on
Jan. 15 was elected President of the Rockingham National
Bank of Harrisonburg, Va., to succeed C. G. Harnsbarger,
who had served since 1914. W. M. Menefee, City Councilman, was named Vice-President to succeed Judge T. N.
Haas, who had served since 1922. Advices from Harrisonburg to the Washington "Post," noting the above, furthermore said in part:
it Both Mr. Harnsbarger and Judge Haas asked to be relieved, saying
they had served long enough.
1„ Mr. Price becomes the fourth President of the bank, which was organized
in 1900 and to-day claims resources of more than 81.500.000. He is a
former.Presidentpf the Chamber of Commerce, the Rotary Club and other
local organizations.
On Jan. 17 the Comptroller of the Currency chartered
the Greenville National Bank, Greenville, Ohio. The new
bank replaces The Greenville National Bank and is capitalized at $100,000 of which $50,000 is preferred and $50,000
common stock. C. F. York and H. L. Underwood are President and Cashier, respectively, of the new institution.
An increase in the capital of the Dime Savings Bank of
Akron, Ohio, is indicated in the following dispatch by the
Associated,.Press from Akron on Jan. 20:
nWilliam H. Evans, President of the Dime Savings Bank, to-day (Jan. 20)
announced an increase of from $200.000 to $700,000 in the capital structure
of the bank. To keep capital in proportion to deposits, which have more
than ,doubled in the past year, a $500,000 issue of debenture notes has
been voted .by the directors. Evans said. This issue has been sold to
the Reconstruction Finance Corporation, he explained.
The Comptroller of the Currency on Jan. 13 granted a
charter to The Merchants National Bank of Terre Haute,
Terre Haute, Ind. The new institution succeeds The Terre
Haute Trust Co. and is capitalized at $700,000, consisting
of $500,000 preferred stock and $200,000 common stock.
Paul N. Bogart is President and Alfred J. Woolford, Cashier,
of the new bank.
The Chicago "News" of Jan. 16 stated that a cash payment
of 12Y.% would be made to the depositors of the National
Bank of Woodlawn, Chicago, Ill., which closed the latter
part of June 1932, according to information received on
that date. The paper mentioned went on to say:
This is the second cash disbursement made by the bank since its receivership. The first payment was 25% and the second will bring the
total to 371A% to date.
Comment in LaSalle Street to-day (Jan. 16), was strongly favorable
both to the receiver, Eugene Highman, and to Fred L. Lorish, former
President of the closed institution, whose sound practice had left the
assets in a condition that made the dividends possible.
The bank paid down its deposits from $4,250,000 to $1,300,000 in the
course of the depression and has now been able to authorize cash returns
/
2% of the latter amount.
of 371
The cost of the receivership has been only 3.9 cents per dollar collected
and actually paid out to depositors in these two dividends. This is
believed to be one of the lowest records for bank receivership eget in
Cook County. Other assets still remain.
Dan H. Cooney, Vice-President of the Security National
Bank of Sheboygan, Wis., has been elected President of
that institution, according to the Chicago "News" of Jan. 16,
which continued:
Mr. Cooney succeeds George Heller, Sr., 81, who retires after 60 years
of banking. Mr. Cooney came to Sheybogan eight months ago after having
been Executive Vice-President of the First National Bank of Menasha.
He was for a number of years special National bank examiner and is
widely known in Wisconsin and the 7th Federal Reserve District.
Walter J. Kohler, President of the Kohler Company and former Governor
of Wisconsin, was elected Chairman of the Board of Directors.
The Comptroller of the Currency on Jan. 15 issued a
charter to the LaGrange National Bank, LaGrange, III.
It succeeds The First National Bank of that place and is
capitalized at $100,000, of which half is preferred and half
common stock. John C. Tully is President and R. P. Palmer,
Cashier, of the new institution.
In addition to the changes at the annual stockholders'
and directors' meetings of Chicago banking institutions,
noted in our issue of Jan. 13 (pages 279 and 280) and Jan. 20
(pages 453 and 454), other changes in the directorates and
personnel of Chicago banks are indicated below:
Austin State Bank.—Olaf J. Peterson and Albert H. Clement succeeded
F. R. Schock and George F. Huseberg as directors.
Avenue State Bank & Trust Co.—J. C. Williams resigned the directorate
and the vacancy was not filled.
fan. 27 1934
Chicago City Bank & Trust Co.—Frank J. Burke, Assistant Cashier,
was appointed Assistant Vice-President.
Chicago Title & Trust Co.—Four directors whose terms expired were
renamed to the board. They are: Noble Brandon Judah, Nathan G.
Moore, F. Stanley Rickcords, and Albert H. Wetten.
Citizens National Dank of Chicago Heights.—Four new members were
elected to the directorate. They are: Joseph Orr. W. H. Donovan,
Charles Fahlstrom and B. J. Schwoeffermann, which increases the board
from five to seven. W. D. Fudhston and N. Setter resigned. Directors
decided to discard the managerial type of direction and elected Joseph Orr
President. Fahlstrom and Schwoeffermann were named Vice-Presidents
and C. F. Meyer was retained as Cashier.
City National Bank & Trust Co.—Charles C. Haffner Jr., former Executive Vice-President, elected a director to fill the vacancy created by the
recent resignation of Gen. Robert E. Wood.
First National Bank & Trust Co. of Evanston.—Rawleigh Warner and
E. E. Sheridan retired as directors.
First National Bank of Cicero.—Eugene W.Jasper elected to the board.
Hamilton State Bank.—James L. Kanaley was elected a director succeeding his brother, Byron V. Kanaley.
Illinois Central Bank & Trust Co.—Alice Greely and Ray Evans were
elected Assistant Cashiers. Benjamin Franklin Meyer of Meyer-Connor
& Co., investment brokers, who was not eligible for re-election under the
new Deposit Insurance Act, was dropped from the board.
Main State Bank.—Matthew R. Becker, President of the Becker Roofing
Co., appointed Chairman of the Board of Directors, a newly created office.
and Peter Richlowski, Edward C. Hansen and Ernest Kilgore named
Assistant Cashiers.
Mid-City National Bank & Trust Co.—F. W. Allen elected a director.
National Security Bank of Chicago.—George H. Schroeder elected a
director.
Oak Park Trust & Savings Bank.—Fred R. Johns resigned as President
to devote all of his time to the Oak Park Safe Deposit Co.. an affiliate.
and James M. Hurst resigned as Assistant Trust Officer. The position'
were not filled.
Personal Loan & Savings Bank.—Vacancies caused last year on the
board of directors by the resignations of Louis A. Ferguson and George
Pick were not filled.
Prairie State Bank.—James 0. Laughlin and Albert Schallenmuller were
elected directors, replacing T. A. Jackson and D. L. McWeeny, who
resigned.
Upper Avenue Bank.—W. Homer Hertz elected a director. The following directors resigned in accordance with provisions of the new Banking
Act: Chester A. Cook, Charles R. Holden, James B. Kaine, William S.
Kline, Wheeler Sammons and Warren Wright.
Wilmette State Bank.—Charles Ware and Charles S. McCoy elected to
the board to fill vacancies.
According to the Chicago "News" of Jan. 17, stockholders
of the Mercantile Trust& Savings Bank of Chicago, Ill., have
recommended the sale of retirable capital notes in an amount
not to exceed 00,000 to the Reconstruction Finance Corporation. The paper mentioned continued:
"The bank anticipates a substantial increase in deposits, which should
normally be followed by a proportionate expansion in the demand for
credit," Harry N. Grut, President, stated. "The directors believe it to
be highly desirable to strengthen the capital structure of the bank in preparation for a larger volume of business."
The Batavian National Bank of La Crosse, Wis., announces the death of its President, John A. Bayer, on Jan. 2
1934.
The National Bank of Edgerton, Edgerton, Wis., was
chartered by the Comptroller of the Currency on Jan. 9.
The new institution, which succeeds the First National Bank
of Edgerton, is capitalized at $50,000, half of which is preferred and half common stock. J. W.Menhall is President,
and H. M.Petersen, Cashier, of the new bank.
Effective Jan. 9, The Peoples National Bank of Kansas
City, Kan., with capital of $200,000, went into voluntary
liquidation. It has been succeeded by the Security National
Bank of Kansas City.
in the personnel of the Oklahoma
Two changes were made
National Bank, in Capital Hill, Oklahoma City, Okla., at
the directors' recent annual meeting, according to the
"Oklahoman" of Jan. 11: N. L. Dillon, formerly Cashier
of the bank, was advanced to a Vice-President, and A. L.
Wilson, Jr., heretofore Assistant Cashier, was promoted to
the Cashiership. John C. Campbell is President of the
institution.
Directors of the Lindell Tr- ust Co. of St. Louis, Mo., at
their recent annual meeting promoted Charles II. Peters,
heretofore President, to Chairman of the Board and advanced
F. A. Brickenkamp, formerly Vice-President, to the Presidency. Other officers were reappointed as follows: A. W.
Dehlendorf, Vice-President and Secretary; F. A. Sudholt,
Vice-President; L. El Dehlendorf, Vice-President and Trust
Officer; F. A. Kaiser, Treasurer; Harry Graeff, Jr., Assistant Secretary; Roy E. Ahrens, Assistant Treasurer;
William T. Jones, Counsel. The St. Louis "Globe-Democrat" of Jan. 16,from which the foregoing is learnt, added:
P All directors had been re-elected at the stockholders' meeting. The
regular quarterly dividend of $1 per share was voted, payable Feb. 1 to
stock of record Jan. 20.
r
Thomas W. Vinton was appointed a Vice-President of
the Planters' National Bank & Trust Co. of Memphis,
Financial Chronicle
Volume 138
Tenn., in charge of the trust department, at the directors'
annual meeting held Jar. 10, and all the old officers, headed
by Gilmer Winston, Chairman of the Board, and V. J.
Alexander, President, were re-elected. At the stockholders'
meeting held previously, Mr. Alexander in his report called
attention to a net gain in deposits over a year ago of $6,000,000 and an increase in loans and short-term investments
of over $5,000,000, and announced that the profits of the
bank had increased. "A dividend has already been declared
by the directors on Jan. 2," Mr. Alexander's report pointed
out. "The number of new accounts in the past year, particularly commercial deposits, is extremely gratifying to the
management, and brings us into 1934 with very encouraging
prospects for the growth and success of our institution." In
regard to the new Vice-President, the Memphis "Appeal" of
Jan. 11,from which the foregoing is taken, said:
Mr. Vinton was born in Memphis, and started his banking career with
the old Bank of Commerce as a runner, 23 years ago. When he returned
from the World War in 1919 he entered the trust department. Since
Tune he had been assistant officer of the First National Bank.
:
last
On Jan. 13 1934 The Atlantic National Bank of Charleston,
S. C., was placed in voluntary liquidation. The institution,
which was capitalized at $200,000, was absorbed by the
Citizens & Southern Bank of South Carolina, Charleston.
The Bank of Tupelo, Tupelo, Miss., on Jan. 17 released
its deferred deposits following purChase of stock by the
Reconstruction Finance Corporation, which bought $100,000 of capital notes in the bank, according to a dispatch
from that place, printed in the Memphis "Appeal" which
added:
The bank recently qualified for Federal insurance of its deposits. Since
it qualified its deposits have increased.
The deposits which are being released were "frozen" by special agreement of depositors following the banking holiday last year.
The Comptroller of the Currency on Jan. 9 granted a
charter to the First-Lockhart National Bank, Lockhart,
Tex. The new bank, which is capitalized at $100,000,
succeeds the First National Bank of Lockhart. John T.
Storey heads the institution and Arthur A.'Wilde is Cashier.
The West National Bank, West, Tex., was granted a
charter by the Comptroller of the Currency on Jan. 9.
It succeeds the West State Bank and is capitalized at $50,000.
Paul S. Skrabanek and F.E.Seith are President and Cashier,
respectively, of the new bank.
The City National Bank of Houston, Houston, Tex., was
chartered by the Comptroller of the Currency on Jan. 16,
as successor to the City Bank & Trust Co. of that city.
The new bank is capitalized at $600,000, half of which is
preferred and half common stock. J. A. Elkins and H. L.
Sadler are President and Cashier, respectively, of the institution.
On Jan. 9 1934 the City National Bank of Wellington,
Wellington, Tex., went into voluntary liquidation. The
institution, which had a capital of $100,000, was succeeded
by the City State Bank in Wellington.
Vallejo Commercial National Bank, Vallejo, Calif., one
of the pioneer banking institutions of the San Francisco
Bay region, became a part of the Bank of America Statewide branch banking organization on Jan. 20. The acquired
bank will be operated as the Vallejo Commercial Branch
of the Bank of America National Trust & Savings Association (head office San Francisco). The announcement by
the latter goes on to say:
As the Vallejo institution has been owned for some time by Transamerica Corporation, which also owns Bank of America, no notable change
In the status of the acquired bank is involved in the consolidation. All
mernbers of the staff will be retained on the Bank of America payroll
and members of the Board of Directors will become members of the
Advisory Board of the Vallejo Commercial Branch.
Operations will be continued at the present location of the Vellejo Commercial National Bank at Georgia and Sacremento Streets. The ganking
quarters are to be completely redecorated and modernized after completion
of the merger formalities.
In announcing the consolidation, Will F. Morris, President of the
Bank of America, stated that T. J. O'Hara. President of the Vallejo
Commercial National Bank, will became a Vice-President of the Bank of
America and Manager of the new branch. Other officers of the Vallejo
Bank are to be appointed as officers of the Bank of America.
Directors of the Vallejo Bank who are to become members of the Advisory
Board of the Vallejo Commercial Branch are: T. J. O'Hara, B. C. Byrne,
D. J. Moran, J. V. O'Hara, J. .1. McDonald anad C. F. George.
Vallejo Commercial National Bank, which was founded in 1870, has
total deposits in excess of 11,800,000 and total resources of more than
$1,900,000.
gema.....amera•
631
The 102nd annual report of The Bank of Nova Scotia
(General Office, Toronto, Canada)covering the year 1933,
was made public on Jan. 22 through the New York agency
of the institution. A very strong cash and liquid position
and an increase of approximately $5,000,000 in deposits
are features of the statement. The cash held, consisting of
current coin,Dominion notes, United States and other foreign
currencies and deposit in the central gold reserve, totaling
$36,587,851, is reported as 15.65% of liabilities to the public
compared with 14.09% at the end of 1932. Similarly,
readily available or quick assets are $142,388,422 or approximately 61% of public liabilities.
The bank's investments, all shown at not exceeding market
value, are listed in the statement as of Dec. 30 1933 as
$79,190,271, the increase of $4,001,291 for the year being
entirely represented by Dominion, Provincial and municipal
securities. Call loans in Canada and elsewhere showed a
reduction of $4,234,843. Current loans in Canada at $97,117,482 are up slightly, with current loans elsewhere than in
Canada off $507,365. Total assets stand at $270,316,753,
an increase of $5,402,636. On the side of liabilities, total
deposits are reported as $207,992,360, a gain of roughly
$5,000,000 or 2.4% over the aggregate at the end of 1932.
Net earnings for the 12 months, after providing for losses
by bad debts, amounted to $2,035,900, which when added to
$578,225, the balance to credit of profit and loss brought
forward from the previous year, made $2,614,125 available
for distribution, out of which the following allocations were
made: $1,500,000 to pay four quarterly dividends (at the
rate of 14% per annum for the first quarter and 12% per
annum for the remaining three quarters); $112,000 to take
care of Dominion Government tax on circulation; $115,000
contributed to officers' pension fund and $250,000 written
off bank premises account, leaving a balance of $637,125
to be carried forward to the current year's profit and loss
account. The paid-up capital is $12,000,000 and the reserve
fund $24,000,000. The Bank of Nova Scotia, which was
founded in 1832, maintains branches from coast to coast in
Canada, also in Newfoundland, Jamaica, Cuba, Puerto
Rico, Santa Domingo, and in New York, Boston, Chicago
and London, England. S. J. Moore is Presidert and J. A.
McLeod, General Manager.
At the annual general meeting of the shareholders of the
Bank of Nova Scotia, held at Halifax, N. S., on Jan. 24,
J. A. McLeod, General Manager, announced his retirement
from that position, which he has occupied for the past ten
years, and at a meeting of the bank's directors held later
Mr. McLeod was elected President of the institution, and
S. J. Moore, the former President, was made Chairman of
the Board. H. F. Patterson, for the past ten years Senior
Assistant General Manager, was advanced by the directors
to General Manager; H.D.Burns was made Senior Assistant
General Manager, and E. Crockett, Chief Superintendent
of the Bank, was promoted to an Assistant General Manager.
Grant MacIntyret Supervisor of Central Branches, was
appointed Supervisor of Branches. The announcement
went on to say:
Mr. Patterson, the new General Manager, is-enative of New Brunswick
brings to
and joined the staff of the bank at Campbellton in 1890. He
the,bank's business
the General Manager's desk a thorough knowledge of
and at
through his wide experience as an executive offIcerlat the:head office
he_was
branches, principally in Montreal. Chicago anciliNew&York, where
the bank's Agent, and in recent years at Toronto.
U. D. Burns, who will be the Senior Assistant Generadhianager, is well
known in Toronto, where he was for some yearsilManager of the local
branch before joining thelhead office executive in 1923.
E. Crockett, the new Assistant General Manager, isralPrince:Edward
Islander who entered the bankrat Charlottetown 141898.1 His:experience
has been mostly in the head office of the bank, in recentlyeare.anShief
Superintendent of Branches.
Grant Maclntyre, wholbecomes the new Chief Supervisor of Branches.
Is a native of Strathroy and joined the staff of the bank in 1914 at the time
of the amalgamation of the Metropolitan Bank, of which he was Inspector.
He has continued in the head office since that time, latterly:as_Supervisor
of Central Branches.
Mr. McLeod's remarks at the annual meeting were reported as follows in Halifax advices by the Canadian Press:
Mr. McLeod declared that realism is the greatest'present:need in Canadian thought. An opponent of governmental:over-borrowing, Mr. McLeod
declared that a new kind of realism would enter:Canadianl politics if the
taxpayer were to appreciate that every new loan placed over himiby taxing
authorities will add to his burden:and that "his life contains only two certainties—those of eventual death on the one hand, and on the other, the
collection of this debt, either from him or his:children."
The banker described Canada's public debt in 1932 as totaling more than
$8.500.000.000, representing an increaselduring thekwari years of 135%
and an increase between 1919 and 1932 of 150%.
Canada is exposed, he said, to powerful influencesvoriginating In Great
Britain and the 'United States through her financial dealings in1Londoeand
theconsequences of policies
New York. "We feel," he said "
which are originated in Britain and in thelljnitediStates.inaturallyi not in
response to our needs but in response to their own.* Theserconsequences
are reflected in the value of our dollar on the foreign exchanges, in our own
domestic level of prices and even,to some extent,in our taxable capacity."
632
Financial Chronicle
THE WEEK ON THE NEW YORK STOCK EXCHANGE.
Trading on the New York Stock Exchange has been in
large volume with prices generally moving toward higher
levels during the greater part of the present week. There
have been occasional periods of irregularity, and considerable profit taking has been in evidence, but the latter
was generally absorbed without apparent change in the
upward trend. The steel stocks have been in good demand
at higher prices and many of the trading favorites among the
chemicals, motors and miscellaneous industrials have
attracted a goodly amount of speculative interest. Call
money renewed at 1% on Monday and continued unchanged
at that rate on each and every day of the week.
Heavy dealings and a broad upward movement indicated
increased public interest in the stock market during the twohour session on Saturday. Practically every active group
participated in the advance which carried many of the popular speculative favorites forward from 1 to 3 or more points.
Steel stocks were prominent in the upward swing, United
States Steel breaking through 56, followed by the miscellaneous industrials with substantial gains. During the
opening hour the trading was particularly heavy, many large
blocks of stocks changing hands at higher prices, the dealings
being so large that the tickers, at times, were several minutes
behind the transactions on the floor. Considerable profittaking was apparent, though this had little effect on the trend
of prices as the market continued to plough ahead to higher
levels. Railroad stocks continued in demand and several
broke into new high ground for the current movement.
Public utilities made quiet progress and motors and amusement shares moved ahead with the leaders. The gains for
the day included among others such active stocks as American Commercial Alcohol 134 points to 593%, Beatrice Creamery Pref. 33% points to 6334, Byers pref. 234 points to 5534,
Central Railroad of N. J. 23
% points to 8134, Cuban American Sugar pref. 6 points to 43, Delaware & Hudson 23(
points to 68, Endicott Johnson (3) 334 points to 58, New
York & Harlem 4 points to 125, West Penn Power pref.
(7) 8 points to 98 and National Lead pref. (7) 534 points to
131.
Stocks spurted upward as trading opened on Monday,
but
the pace soon slowed down and prices eased off to the
r
closing levels of the previous business day. Trading was
again heavy and the ticker was unable to keep up with the
transactions on the floor. As the day advanced, reactionary
tendencies became more pronounced, and while there was a
fairly large list of gains at the close, most of the advances
were small. Prominent among the active stocks closing on
the upside were Allied Chemical1& Dye pref. (7), 1% points
to 124; American Can, 234 points to 1023; Armour of Delaware (7) pref., 2 points to 8634; Bangor & Aroostook pref.
(7), 5 points to 105; Midland Steel pref. (4), 9 points to 80;
Norfolk & Western pref.(4),234 points to 853;Otis Elevator
6 points to 98; Pure Oil pref., 28% points to 68; United States
Leather pref.,5 points to 65 and Worthington Pump pref. A,
234 points to 30.
Steels stocks, merchandising shares and aircraft issues
lead the advance on Tuesday and a number of popular
speculative issues continued to move ahead into new high
ground. In the final hour the buying wave grew stronger
and, as the trading ended, stocks, as a rule, were near their
best for the day. Miscellaneous industrials like General
Motors, American Can and Industrial Rayon were in good
demand at higher prices, and there was considerable buying
apparent in the railroad group and oil shares. The gains
included Allied Chemical & Dye, 33.4 points to 1543%;
American Smelting (6) pref., 5 points to 80; American Water
Works pref. (6), 4 points to 69; Bethlehem Steel pref.,
4; Cuban American Sugar pref., 33
4 points
334 points to 797
to 43; du Pont, 234 points to 101; Industrial Rayon,6 points
to 93; Pacific Tel. & Tel., 2 points to 78; Union Bag & Paper,
4 points to 533%; United States Leather pref., 2 points to 67;
Jan. 27 1934
Vulcan Detinning Co., 5 points to 100; Ward Baking pref.,
2 points to 34; West Penn Electric pref. (6), 2 points to 85;
Worthington Pump pref. A, 7 points to 4934; Wright Aero,
53% Points to 263, and Western Union Telegraph, 134
points to 613%.
Renewed buying along a broad front on Wednesday sent
many prominent stocks briskly forward to new tops for the
year. Steel shares, motor issues and chemicals led the upward
rush, while numerous other active stocks in the industrial
division were in good demand at higher prices. Toward the
end of the day profit taking appeased in considerable volume
and reduced the early gains to some extent, but the market,
as a whole,closed higher. Railroad shares and public utilities
were active and higher but the gains were smaller than shown
in the industrial group. Noteworthy among the advances
were American Can pref. (7) 234 points to 133, Baldwin
Locomotive pref. 4 points to 50, Corn Products pref. (7)
234 points to 13634, United States Leather Co. pref. 5
points to 72 and Worthington Pump pref. "B" 67
4 points
to 42.
Leading issues and specialties eased off from 1 to 2 points
in a comparatively quiet market on Thursday, though there
was practically no pressure apparent at any time. There
were a few scattered advances during the early trading and
around noon prices eased off but again moved ahead during
the late trading. Among the gains registered at the close
4 points to 72; Colorado
were American Water Works pref.,23
Gas & Electric, 2 points to 70; Devoe & Raynolds, 3 points
to 37; Electric Auto Lite, 234 points to 2734; Foster Wheel
pref., 3 points to 70; Hudson Motors, 25
% points to 223/2;
New York Steamheating pref., 434 points to 8934; Owens
Glass, 23
4 points to 873
4; Pittsburgh Coal, 234 points to
1734; Pure Oil pref., 23
4; Remington Rand
4 points to 663
2d pref., 3 points to 50; Shell Union Oil pref., 21% points to
77; West Penn Electric, 2 points to 65; Westinghouse pref.,
531 points to 80, and Wright Aero, 234 points to 2934.
The market generally was less active on Friday and
during a goodly part of the session prices were weak due
to profit taking. In the closing hour some of the more
active stocks developed a stronger tone, particularly among
the packing issues and alcohol shares. Rubber stocks
also were among the shares attracting special interest,
Goodrich pref. showing a gain of 234 points to 5034. Motor
issues and allied stocks were fairly active, particularly in
the closing hour when the trend turned slowly upward.
The gains in the general list were, however, small and
included among others American Tobacco pref., 134 points
to 114; American Dry Goods (1) pref., 434 points to 62;
Bangor & Aroostook pref. (7), 334 points to 10634; Corn
Products (3), 2 points to 3334; Devoe & Raynolds, 2 points
to 39; du Pont (6), 2 points to 119; Pere Marquette, 234
points to 263
4;Pure Oil pref., 334 points to 72, and Wright
Aero, 1734 points to 47.
TRANSACTIONS AT THE NEW YORK STOCK EXCHANGE,
DAILY, WEEKLY AND YEARLY.
Wax Ended
Jan. 26 1934.
Railroad
Stocks.
stale.
Number of and Mina. Municipal .11
Shares.
Bonds.
For'n Bonds.
1,954,440
2,663.410
2,383,740
3.356.780
2,267,500
2,506.640
Saturday
Monday
Tuesday
Wednesday ---Thursday
Friday
Toth]
Total
Bond
Sales.
11,753,000
3,415,000
4,027,000
4.187,000
3,942,000
3,552,500
8739,000 811.663,000
433,000 18,376.000
989.200 17,062.200
1,117,800 19.689.800
687,000 16.489.000
691,000 15,337,500
15.132.510 873.084.000 820.876.500
14 sa1 nno sag 1117 Kan
Week Ended Jan. 26.
Sales at
New York Stock
Enhance.
1933.
1934.
Stocks-No. of sharesBonds.
Government bonds---State & foreign bonds_
Railroad & misc. bonds
Total
89,171.000
14,528,000
12,046,000
14,385,000
11.860,000
11,094,000
United
States
Bonds.
Jan. 1 to Jan. 26.
1934.
1933.
15,132,510
4,056,461
43,238.712
17,284.642
S4.657.000
20,876,500
73.084,000
87.309,000
13.555,500
33,854,000
866.377.600
80.576,000
231,066,000
$35,961,700
58,715,500
143,476,700
$98,617,500 $54,718.500
8378,019,600
$238,153.900
DAILY TRANSACTIONS AT THE BOSTON, PHILADELPHIA AND
BALTIMORE EXCHANGES.
Boston.
Week Ended
Jan. 28 1934.
Saturday
Monday
Tuesday
Wednesday
Thursday
Friday
Total
Prow
sir
nonsInell
Philadelphia.
Baltimore.
Shares. Bond Sales. Shares. Bond Sales. Shares. Bond Sales.
28,964
51,336
58,596
64,241
45,132
9.894
82,000
1,000
3,000
11,000
22,350
5,000
13.964
22,127
16,051
27,247
17,964
10,500
85,000
2,100
7,000
3,000
2,126
2,768
1,615
3,272
1,751
2,698
83.300
1,300
1,000
400
4,200
18,000
258.163
$44,350
107.853
$17,100
14,230
$28,700
922 !IRO
5922011
120 521
ton 9011
1 X !WI
544 500
Volume
138
Financial Chronicle
THE CURB EXCHANGE.
While moderate gains have been recorded by some of the
more active issues in the curb market trading, the changes in
the general list have been irregular and within narrow limits
during most of the present week, with the possible exception
of Thursday when the market was fairly buoyant and moved
briskly forward during most of the session. Public utilities
have shown considerable activity and oil shares have been in
good demand at higher prices. Irregularity has frequently
dominated the trading due largely to profit taking, but the
list, as a whole, has been fairly firm.
Active profit taking appeared during the two hour period
of trading on Saturday, but considerable new buying flowed
into the market and with a large volume of dealings price
changes were small though generally on the side of the
advance. Oil stocks continued to show improvement, with
Gulf Oil of Pennsylvania leading the advance. Liquor
shares also showed good resistance to pressure, small advances being recorded by Hiram Walker, Distillers Seagram
and Canadian Industrial Alcohol A. Public utilities were
firm, though American Gas yielded as traders took profits.
Miscellaneous industrials registered fractional gains at
times, the active stocks including Aluminum Co. of America,
Sherwin Williams, Swift & Co. and Pittsburgh Plate Glass.
Mining shares did not do much, but there was some activity
apparent in the specialties group.
Narrow price movements and moderate profit taking
characterized the trading on Monday. Gains in the general
list were moderate,the various classifications in the industrial
list receiving the best support, the sharpest trading centering
around Sherwin Williams, Aluminum Co. of America,
American Cyanamid and Parker Rust Proof. Public utilities
were moderately active and stocks like Electric Bond &
Share and American Superpower moved fractionally higher.
In the specialties group, Great Atlantic & Pacific Tea Co.,
Seeman Bros. and Singer Manufacturing Co. made slight
progress under light trading. Mining and metal shares
were mixed, Pioneer Gold selling higher at times, while
Newmont and Lake Shore sold off. Liquor shares also were
down, both Distillers Seagram and Hiram Walker yielding
to lower levels.
Cautious trading guided the movements of the curb market
on Tuesday, most of the prominent issues working irregularly
lower as the day progressed. Oil stocks met realizing from
the previous day's rally, but held their own fairly well.
Public utilities eased off and as the demand lessened, miscellaneous industrials and specialties like Montgomery Ward A,
American Cyanamid B and American Airways were fairly
steady. Pittsburgh Plate Glass, Parker Rust Proof and a
few other prominent issues showed fractional losses. In the
mining group, Newmont was fairly firm while Lake Shore
sagged. Oil stocks provided the exception to the downward
swing as Gulf Oil of Pennsylvania moved up about 2 points
and Humble Oil showed a fractional gain.
The curb market was fairly buoyant on Wednesday as
prices traveled briskly forward. Profit taking appeared in
large volume, but the list had little difficulty in absorbing
such offerings. Miscellaneous industrials and specialties
were the strong stocks, especially shares like Mead Johnson
and Sherwin Williams which showed good gains. Public
utilities also were firm and mining stocks moved steadily
forward. Oil issues were represented on the upside by
Humble Oil and Standard Oil of Pennsylvania. Mining
stooks, on the other hand, lagged behind, Lake Shore and
Aluminum Co. of America showing slight losses. Liquor
stooks were lower.
Specialties were the leaders of the modest upswing on
Thursday, though prices, on the whole, moved somewhat
narrowly throughout the session. Profit taking appeared
during mid-session and clipped some of the early gains, and
while there were some recessions among the active stocks,
most of these were small. Oil shares, as a rule, were down
on the day, and so were the mining issues and metal stocks.
There were also small losses in the public utility group and
the wet stocks.
633
Oil securities were moderately strong on Friday though the
list, as a whole, was weak and generally off for the day.
Mining and metal shares were especially weak, Aluminum
Co. of America dipped about 2 points while Newmont and
Lake Shore were off around a point. Public utilities also
moved on the downside, the weak spots including American
Gas & Electric, Niagara Hudson and Electric Bond & Share.
The wet stocks were slightly firmer, but the movements
were narrow. The changes for the week were small and about
equally divided between advance and decline. Among the
prominent stocks closing slightly higher for the week were
American Laundry Machine, 143 to 163'; Associated Gas
& Electric A, % to 1; Atlas Corp., 13% to 14; Brazil Traction & Light, 13 to 133j; Cities Service, 3 to 33/s; Common3 Creole
wealth Edison, 513 to 55; Cord Corp., 73/i to 7%;
Petroleum, 113' to 123j; Electric Bond & Share, 173/i to 18;
Ford of Canada A, 193 to 20%; Gulf Oil of Pennsylvania,
703
% to 75%; Humble Oil (new), 38% to 40; International
Petroluem, 213j to 223/8; Singer Mfg. Co., 165% to 173;
5 to 36; Swift & Co., 163
A. 0. Smith, 35%
% to 173', and
United Gas Corp., 25
% to 2%.
A complete record of Curb Exchange transactions for the
week will be found on page 663.
DAILY TRANSACTIONS AT THE NEW YORK CURB EXCHANGE.
Week Ended
Jan. 26 1934.
Stocks
(Number
of
Shares).
255,660 82,855,000
426,780 4,285,000
332,190 3,930,000
491,055 5,342,000
282,753 4,313,000
306,690 4.100,000
Saturday
Monday
Tuesday
Wednesday
Thursday
Friday
Total
Bonds (Par Value).
Foreign
Foreign
Domestic. Gmmurms8. Corporate.
8119,000
155.000
193,000
346,000
194.000
141,000
Total.
3147.000 83,121,000
194.000 4,634,000
292.000 4.415,000
179,000 5,867,000
183,000 4,690.000
175,000 4.416.000
2,095,128 324,825.000 81,148,000 31.170,000 $27,143,000
Week Ended Jan. 26.
Sales at
New York Curb
Exchange.
Stocks-No.of shares
Bonds.
Domestic
Foreign governmentForeign corporate.
Total
1934.
2,095.128
Jan. 1 to Jan. 26.
1933.
1933.
1934.
511,970
6,565,803
2,335,101
924,825,000 817,357,000
1,148,000
909,000
1,170,000
822,000
877,719,000
3,949,000
4,202,000
978,761.000
3.977.000
4,417.000
827.143.030 819,088.000
885,870,000
$87.155,000
COURSE OF BANK CLEARINGS.
Bank clearings this week will again show an increase 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. 27) bank exchanges for all cities of the United
States from which it is possible to obtain weekly returns
will be 9.9% above those for the corresponding week last
year. Our preliminary total stands at $4,731,536,970,
against $4,304,589,974 for the same week in 1933. At this
center there is a gain for the five days ended Friday of 7.8%.
Our comparative summary for the week follows:
Clearings-Raurns by Telegraph.
Week Ended Jan. 27.
1934.
1933.
Per
Cent.
New York
Chicago
Philadelphia
Boston
Kansas City
St. Louis
San Francisco
Los Angeles
Pittsburgh
Detroit
Cleveland
Baltimore
New Orleans
$2,448,481,980 $2,270,532,331
124,704,583
160,961,104
234,000.000
203,000,000
126,000,000
157,000,000
46,098,639
54.567,467
39,700.000
50.500,000
67,300,000
80,072,000
No longer will re port clearings
55,563,683
63,008,036
42,604,082
55,997,132
44,497,757
39,216,742
38.815.816
35,039.976
23,545,852
24,721,000
+7.8
+29.1
-13.2
+24.6
+18.4
+27.2
+19.0
Twelve Mtles, 5 days
Other cities, 5 days
83,372.565.437
487,048.705
13,113,362,743
386.746.985
+8.8
+25.9
Total all cities, 5 days
All cities. 1 day
83,859,614,142
871,922,828
83.500,109,728
804,480,246
+10.9
+8.4
14 721 ARA am
24 204 SA9 974
41-9.9
Tea41 411 r4t144 rm.swat
+13.4
+31.4
-11.9
--9.7
+5.0
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.
In the elaborate detailed statement, however, which we
present further below, we are able to give final and complete
results for the week previous, the week ended Jan. 20. For
that week there is an increase of 4.6%, the aggregate of
clearings for the whole country being 84,735,864,835, against
$4,527,232,379 in the same week in 1933.
Outside of this city there is an increase of 4.5%, the bank
clearings at this center having recorded a gain of 4.7%.
We group the cities according to the Federal Reserve Dis-
634
Financial Chronicle
tricts in which they are located and from this it appears
that in the New York Reserve District, including this city,
there is an increase of 4.6%, but in the Boston Reserve
District the totals record a loss of 1.3% and in the Philadelphia Reserve District a contraction of 13.1%. In the
Cleveland Reserve District the totals are larger by 6.3%
and in the Atlanta Reserve District by 26.5%, but in the
Richmond Reserve District the totals register a decline of
6.8%. In the Chicago Reserve District there is a gain of
8.7%, in the St. Louis Reserve District of 11.1% and in the
Minneapolis Reserve District of 21.0%. The Kansas City
Reserve District enjoys an increase of 15.4%, the Dallas
Reserve District of 20.5%, and the San Francisco Reserve
District of 14.9%.
In the following we furnish a summary of Federal Reserve
districts:
SUMMARY OF BANK CLEARINGS.
Week Ended Jan. 20 1934.
1934.
Inc.or
Dec.
1933.
1931.
1932.
Federal Reserve meta.
$
let 1308ton_ _ _ _12 cities
234,618,747
2nd NewYork....12 "
3,096,866,798
3rd Philadelpla 9 "
258,120,554
6th Cleveland__ 5 "
181,784,779
5th Richmond _ 6 "
86,331,458
5th Atlanta___ _10 '
97,225,355
7th Chicago _ _ _19 "
299,057,206
8th St.Louis_ _ _ 4 "
99,681,8E8
9th Minneapolis 7 "
71,180,615
10th Kansas city 9 "
100,570,965
11th Dallas
40,721,458
5 "
12th San Fran 13 "
170,505,012
8
237,802,948
2,958,804,606
296,996,631
171,068,838
92,618,943
76,864,464
275,212,409
89,702,176
58,820,126
87,163,730
33,792,861
148,384,647
%
-1.3
+4.6
-13.1
+6.3
-6.8
+26.5
+8.7
+11.1
+21.0
+15.4
+20.5
+14.9
$
284,955,397
3,597,028,974
297,423,647
220,786,457
115,374.130
98,289,692
379,009,357
103,445,792
71,532,535
112,595,199
43,331,102
197,443,147
$
378,856,742
5,120,515,912
412,538,928
332,464,875
137,921,497
122,195,246
618,713,850
137,905,482
90,496,294
166,571,540
51,040,082
246,669,332
Total
111 cities
Outside N. Y. City
4,735,864,835
1,730,847,997
4,527,232,379 +4.6
1,656,929,663 +4.5
5,521,215,429
2,031.198,548
7,815,889,780
2,817,538,288
286914431
217.679 463 -1-31.8
750 752 480
317.194.416
Canada
32 eltins
We now add our detailed statement, showing last week's
figures for each city separately for the four years:
IVeek Ended .Ian. 20.
Clearings at
1934.
First Federal
Me.-Bangor___ _
Portland
Mass.-Boston _ _
Fall River_ _ _
Lowell
New Bedford_ _
Springfield_ _
Worcester
Conn.-Hartford
New Haven_ _ _
08.1.-Providence
N.H.-Manches'r
Total(12 cities)
1933.
$
$
%
Reserve Dist net-Boston404.522
334,192 +21.0
1,481.585
2,201,816 -32.7
207,922,976 210,766,099 -1.3
569,022
657.886 -13.5
376,073
451.886 -16.8
674,381
561,970 +20.0
2,657,009
2,956.180 -10.1
1.173,857
1,660,763 -29.3
7.651,175
6,841.538 +11.8
3,636,645
3,834.608 -5.2
7,748,500
7,088,200 +9.3
323.002
447,810 -27.9
234,618,747
237.802.948
Second Feder al Reserve D 'strict-New
N. Y.-Albany _ 9,841,407
10.746,724
Binghamton_ _ _
1,094,944
888,260
Buffalo
25,784,914
21,890,840
Elmira
482,381
611,579
Jamestown_ _
397,991
441.248
New York_ _ _ 3.005.016,838 2,870.302.716
5,348,222
Rochester
4.897,645
4.986,835
Syracuse
3,619,324
2,919,249
Conn.-Stamford
2,556,805
.240,000
N. J.-Montclair
388,702
Newark
15,788.347
16,745.109
Northern N. J24.165,670
25.715.654
Total(12 cities) 3,006,066,798 2,958.804,606
Third Federal Reserve Dist riot-Philad
357,221
Pa.-Altoona__ _ _
339,366
Bethlehem _ _
O
C
264,534
Chester
246,090
683.451
Lancaster
816,950
Philadelphia- _ 248,000,000 287,000,000
1,208.726
Reading
1,753,671
1,888,934
Scranton
2,145,093
1,148,236
Wilkes-Barre_ _
1,491,531
910,452
York
1,000,930
3,650,000
N.J.-Trenton_.
2.203.000
Total(9 cities).
Inc. or
Dec.
258,120,554
-1.3
1932.
$
1931.
$
515,559
2.697,180
249,198.150
974,598
245.783
672,095
3.593,806
2.491,836
8,348,816
6,723,384
9,020,500
473,690
834,561
2,693,444
336,709,413
796,785
487,263
913,004
4.338,634
2.854.191
10.461,156
7,515,739
10,670,300
682,352
284,955,397
378,856,742
York-8.4
6,246,153
5,744,459
+23.3
731,057
1.097,596
+17.8
27,659,175
36,116,468
-21.1
999,775
1,171.939
-9.8
694,552
1,059,271
+4.7 3,490.016.881 4,998,351,492
+9.2
7.048.006
9,529,695
+37.8
3,485.006
4,068.743
+14.2
3,053,984
3,537,527
-38.3
654,998
650,223
-5.7
24,015,605
28,488,475
-6.0
32.423.782
30,700,024
+4.6 3,597,028,974 5,120,515.912
el phla+5.3
537.795
C
c
+7.5
601.256
1,121,004
-16.3
-13.6 282,000.000
-31.1
2,263.823
-11.9
3,391,716
-23.0
1,824,648
1,174,315
-9.0
+66.1
4,509,000
296.996,631 -13.1
1,149,364
C
700,000
1,407,329
394,000,000
2,376,594
4,020,795
3,611,844
1,715,002
3,558.000
297,423,647
412.538,928
c
c
47,628,047
70.941,753
8,383,100
1,000.000
c
92,833,557
C
C
68,459.893
103,010.067
12.880,500
1,741.212
c
146,373.203
+6.3
220,786.457
332,464,875
Fifth Federal Reserve Dist riot-Richm ond120,582
W.Va -11unt'ton
331,414 -65.7
Va.-Norfolk___ _
1,490,000
2,132,000 -30.1
24.648,333
Is Richmond _
24,313,575 +1.4
864,293
S.C.-Charleston
718,879 +20.2
Md.-Baltimore
46.298,626
47,660,755 -2.9
D.C.-Washing'n
12,909,624
17.442,320 -26.0
513,901
3,061,826
28,092,458
741,819
61,198,686
21,765,440
902.498
2.865,174
34.610.000
1.612.889
74,411.866
23,519.070
Fourth Feder al Reserve D istrict-Clev elandc
Ohio-Akron... _
C
c
C
Canton
C
C
39,286,942
Cincinnati _ _ _
41,604,609 -5.6
Cleveland
54,365.391
54,152,892
+0.4
Columbus
9,667,300
8,321.100 +16.2
Mansfield
1,099.851
741,904 +48.2
Youngstown_ _
C
c
C
Pa.-Pittsburgh _
77,365,295
66,248,333 +16.8
Total (5 cities).
181,784,779
86,331,458
171,068,838
-6.8
115,374,130
137,921,497
Sixth Federal Reserve Dist rict-Atlant a1,956,365
Tents -Knoxville
2,000,000 -2.2
Nashville
9.447,879
8,138,399 +16.1
Ga.-A tlanta___ _
33,300,000
23,700,000 +40.5
787.844
Augusta
603,356 +30.6
501,663
Macon
337.638 +48.6
Fla.-Jacks'nvill
12,619.000
7,648,742 +65.0
Ala.-Birm'ham _
11,390.733
7,311,285 +55.8
837,467
Mobile
766,036 +9.3
CC
Miss.-Jackson.
c
123.471
105,001 +17.6
a Vicksburg
26,260.933
La.-NewOrlearls
26,254,007 +0.1
3,303,146
10,145.500
29,600,000
1,097.934
519,860
10,871,459
11,198,349
1,232,818
C
127,529
30,193.097
1,800,000
12,889,249
3(1,701,155
1,407,387
771,071
13,160,234
13.738.363
1,413,904
c
168,051
40.145.832
97,225,355
98.289,692
122,195.246
Total (6 cities).
Total(10 cities)
92.618,943
76,864,464 +26.5
Ian. 27 1934
Week Ended Jan. 20.
Clearings at1934.
Seventh Feder al
Mich.-Adrian_
Ann Arbor_ _
Detroit
Grand Rapids.
Lansing
Ind.-Ft. Wayne
Indianapolis_ _
South Bend__ _
Terre Haute_
Wis.-Milwaukee
la.-Ced. Rapids
Des Moines_ _
Sioux City_ _ _ _
Waterloo
HI-Bloomington
Inc. or
Dec.
1933.
$
Reserve D istrict- Chi cago64.590
89,929 -28.2
411,973
520,170 -20.1
65,419.142
56.350,619 +16.1
1,371,085
2.682,497 -48.9
792.812
531,300 +49.2
518.687
794,333 -34.7
10,965.000
10,474,000
+4.7
575.776
1,191,246 -51.7
4,140.031
2,859,252 +44.8
11,309,567
11,392,219 -0.7
303,160
618.917 -51.0
4.665,932
5,175,425 -9.8
2,236,915
1,775,355 +26.0
Chicago
Decatur
Peoria
Rockford
Springfield_
264.067
191,671,252
433,560
2,739,981
489,028
684.648
708,052
176.064,587
342,990
2,126,491
411.626
1,103,401
Total(19 cities)
299,057.206
275,212,409
Eighth Fedora I Reserve Dis trict-St. Lo
Ind.-Evansville,
Mo.-St. Louis
61,600.000
65,200.000
Ky.-Louisville
17.78E191
21,132.406
Tenn.-Memphis
10,027.249
13,000,482
111.-Jacksonville.
Quincy
349,000
293.736
1932.
1931.
129,005
525,835
76,687,445
3,736,898
4,158,800
1,182,132
12,797,000
1,268,752
3,643.599
17,241,273
975,623
5.209,677
2,718,636
179.482
646,622
135,756,391
4,427,818
2.865,193
2,159,577
15,489,484
1,847,851
4.321,692
22.747,848
2.889,442
6,883,220
3,829,788
-62.7
+8.9
+26.4
+28.8
+18.8
-38.0
1.109,321
241,519,900
622,835
2,653.493
1,183,700
1,645,433
1,206,794
404,738,402
836,553
3,403,907
2,193,533
2,290,253
+8.7
379,009.357
618,713,850
71,000,000
20.032,702
11,831,054
104,100,000
21,031,482
11,321.368
uls+5.8
+18.8
+29.7
+18.8
562,036
552.632
89,702.176 +11.1
103,445,792
137,905,482
Ninth Federal Reserve DIs trIct-Minn eapolis
Minn.-Duluth
2.025,073
1.667,925 +21.4
39,321,529 +16.8
45,916,139
Minneapolis--S. Paul
19,500,202
14,119.589 +38.1
N. D.-Fargo_ _
1,519.591
1,280,301 +18.7
483.431 -6.3
S.63.-Aberdeen.
452,708
264,221
254,823 +3.7
Mont -Billings _
1,692,528 -11.2
Helena
1,502,501
2,365,746
48,744,088
16.082,184
1,666,130
626.433
3/7.778
1,720,176
4,379.455
60,861.400
19.679.355
1,625.944
9(32.046
440.304
2.538,700
58.820,126 +21.0
71,532,535
90,496,294
Tenth Federal Reserve Dis trict-Kans as City
93,792 -48.3
48,491
Neb.-FremontHastings
Lincoln
1,942.411
1,457,970 +33.2
17,466,119 +51.4
Omaha
26,451,865
Kan.-Topeka
1,499.208 +17.8
1,766.768
3.610,528 -41.3
Wichita
2,117,853
Mo.-Ran, City.
58,412.057
62,395,363
+6.8
3,643.541 +10.9
St. Joseph._
4,041,998
Colo.-Col.Spgs_
480,781 -18.2
393,509
499,734 -17.4
Pueblo
412.707
186,267
344,381
2,186,832
25,035.101
2,249,686
4,839,125
72,923.470
3.653,958
595,349
925,411
2,613,940
37.253,157
3,232.203
5,955.117
109,842.639
5,186,990
914.710
1,228.403
87,163,730 +15.4
112,595,199
166,571,540
Eleventh Fecle cal Reserve District-Da Has-Tex.-Austin.
703,992 -5.5
665,305
Dallas
24.502,928 +22.9
30.121,15
)1
Ft. Worth_ _ _
4,486.899 +17.3
5,260,, 49
Galveston
2,079,000 +20.8
2.5i2.(L0
La.-Shreveport.
2.020,042
2,161,803
+7.0
883.174
375,135
6,572,164
2.765,000
2,735.629
1,189,471
35,157,387
8,128.283
3,019,000
3,545,941
43,331.102
51,040.082
Total(4 cities).
Total(7 cities)_
Total(9 cities).
Total (5 cities).
99,681,888
71,180,615
100,570,965
40,721,458
33,792,861
+20.5
Twelfth Feder d Reserve D Istrict-San Franci sco-19,103.539 +11.7
21,336,397
Wash.-Seuttle
25,806.988
3,981,000 +38.8
Spokane
5,525,000
7,095,000
294,910 +55.5
Yakima
458,715
489,030
14,734.530 +21.2
Ore.-Portland ....
17,862,626
18,866,463
8,890,530 +11.7
Utah-S. L. City
9,934.485
11,680,203
2,591,220 +6.8
Cal.-Long Beach
2.766,960
4,141,243
Los Angeles_
No longer will report cleans gs.
2,663,981
2,754.301
Pasadena
4.073.520
+3.4
5,401.913 -33.2
3,609,997
Sacramento
7,153,598
San Diego
_ No longer will report clearin gs.
86,854,247 +16.9 113,335,223
San Francisco. 101,490.575
San Jose
1,462,193
1,240,907 +17.8
793,135
911 577 +30.7
Santa Barbara.
1,414,807
1,191,062
737,482 +14.9
Santa Monica.
1,143,333
847,118
978,811 +29.3
1,265,583
1,450,604
Stockton
31,019.498
9,680.000
851.144
24,727,548
14.804,518
6,446,480
4,916,792
6.141,574
140,145,969
2,638,046
1,821,143
1,856,720
1,619,900
Total(13cities) 170.505,012 148,384,647 +14.9 197,443,147 246,669,332
Grand total (111
cities)
4,735.864,835 4,527,232,379 +4.6 5,521,215,429 7,815,889,780
Outside New York 1,730,847,997 1,656.929,663
+4.5 2,031,198.548 2,817,538,288
Week Ended January 18.
Clearings at1934.
CanadaMontreal
Toronto
Winnipeg
Vancouver
Ottawa
Quebec
Halifax
Hamilton
Calgary
St. John
Victoria
London
Edmonton
Regina
Brandon
Lethbridge
Saskatoon
Moose Jaw
Brantford
Fort William
_
New Westminster
Medicine Hat- - _
Peterborough
_
Sherbrooke
Kitchener__
Windsor
Prince Albert
Moncton
Kingston
Chatham
Sarnia
Sudbury
$
83.286.815
105,037,256
46,372,253
13,782,783
@FedFRASER